Nordic Unmanned ASA

Investor Presentation • May 20, 2022

Q1

Letter from the CEO

Start of the year according to plan

We ended Q1 with a revenue of EUR 2.5 million, an increase of 54% from Q1 2021. Q1 reflects a build-up quarter, preparing for the around 200% increase in revenue coming in 2022. Our financial results are in line with our company plans, and already by the end of this month, we will reach an all-time high quarterly revenue, beating Q2 2021.

Drones are more relevant than ever before

Since our last quarterly report, the security situation in Europe has deteriorated dramatically. We are all devastated by the horrible reports we are seeing from Ukraine. We stand in solidarity with Ukraine.

The war has also, on a daily basis, demonstrated how creative, fast and effective implementation of low-cost drones is used as a highly successful risk-reducing force multiplier by the Ukrainians. As a result of this, short-term, we see a dramatic increase in demand for boxed, ready-to-go drone solutions. At the same time, we are also starting to see the longer-term effect of this disruptive use of drone technology as European armed forces are starting to rethink the role drones could play in defending democracy and freedom.

Knut Roar Wiig

CEO Nordic Unmanned 20.05.2022

Advanced industrial drone logistics is ready for take-off

We started the first working day of the quarter by kicking off the exciting Equinor drone logistics project. The project team has had a hectic period, filled with challenges that have not been solved before. To illustrate this, our Light UAS operator Certificate (LUC) has been formally updated four times this quarter to support the success and the increased activity driven by this ground-breaking contract. The list of "world-firsts" are already too long to mention here but stay tuned for the great imagery from the onshore flight campaign that at its peak involved a team of over 30 world-class drone operators and engineers, showcasing advanced industrial drone logistics to an even larger team of customer employees.

Firing on all cylinders

We are closing in on many key projects in all the verticals. There are currently over 31 opportunities with potential awards. These processes take time, sometimes more time than what we expect, as a lot of the opportunities are first-time procurements.

There are four simultaneous long-endurance drone operations in Europe under our LUC, all made possible because of the good groundwork made by our world-leading team in the months leading up to the deployments.

The activity, speed and efforts from our great 140 employees in this quarter reflects the values of our company, daring, caring, entrepreneurial and playful, all within a Just Culture.

And remember: The future is unmanned!

HIGHLIGHTS OPERATIONAL UPDATE

MARKET OUTLOOK APPENDIX

IFRS - CONVERSION

• Nordic Unmanned reports under IFRS from Q1 2022, and its transition date has been adopted as 1 January 2022. This is a part of the process of being uplisted to Oslo Stock Exchange
• The annual accounts for 2020 and 2021 has also been converted to IFRS and will be made available on www.nordicunmanned.com
• Comparable figures related to Q1 2021 have been converted to IFRS. A bridge comparison NGAAP / IFRS for the Q1 P&L is enclosed in appendix
  • Main IFRS effects for Nordic Unmanned.
    • Revenue recognition
    • Lease operational cost to capital cost
    • M&A, tender and training cost no long capitalized
    • Cost related to share-based payments ("Options")

FINANCIAL Highlights Q1 2022

Revenue, consolidated YoY growth EUR 2.5m + 54%

Maritime yoy growth EUR 1m +124% Security yoy growth EUR 1m +21% Infrastructure yoy growth EUR 0.2m -45% Logistics yoy growth EUR 0.4m + 388%

• Key metrics for the quarter Reported revenue of EUR 2.5m, 54% growth YoY.
  • Healthy top-line contribution from recent acquisitions AirRobot and Ecoxy, according to plan
  • Logistics segment expanded 4x, as the onshore drone services contract with Equinor was initiated
  • EBITDA negative EUR 1.9m
  • Financial results in line with company plans. FY guidance upheld
  • Q1 reflects a build up quarter, preparing for record-high operational activity in 2022
  • Q2 revenue exceeded Q1 revenue on 11 May. By the end of May, revenues will surpass previous all-time high quarterly revenue for the group
  • Available liquidity of EUR 5.1m, consisting of cash, overdraft and credit lines
  • Preparing for uplisting to Oslo Stock Exchange
    • IFRS reporting standard as from Q1
    • Propose to convert to a public limited liability company (ASA) at the Annual General Assembly on the 25th of May 2022
    • Uplisting to take place in Q3 2022

OPERATIONAL Highlights Q1 2022

Key metrics for the quarter

Flights	Flight hours	YoY growth flight hours
358	196	+ 60%

• Setting up the OP10 contract Camcopter operations in Germany and France
• Execution of phase one of Equinor project and setting up the Camcopter and Staaker operations in Norway
• Achieved Full Operational Capability (FOC) on the Aerosonde
• Building Aerosonde capability, capacity and readiness for OP46 contract
• In-house training of crew on the Camcopter and Aerosonde
• Adding in-house instructor training for Camcopter technicians
• Two Simultaneous Fishery Inspection operations for OP1/OP12 contracts with the Lockheed Martin Indago
• Achieved Initial Operational Capability (IOC) for the Operation Control Centre (OCC) in Sandnes, ready to support all operations 24/7
• Development of Staaker Railway Drone and Staaker Logistic Drone
• Expanded the LUC with four revisions, adding platforms and capabilities
• Process of implementing lean working methods at AirRobot to increase efficiency and be ready for higher volume production

Aerosonde BG class drones Camcopter Indago Other

COMMERCIAL Highlights Q1 2022

Backlog and pipeline opportunities

Backlog EUR 59m	since Q4 -1%
Awaiting award EUR 377m	31 opportunities
Qualified lead EUR 440m	61 opportunities
Prospects EUR 262m	166 opportunities

Total CRM 01.05.2022

EUR 1100m

Target revenue run rate FY25

EUR 400m

• Increase of maturity in pipeline Awaiting awards from 31 opportunities, representing EUR 377m
• Procurement process for the Bundeswehr in last phase
• Tactical UAS for a Northern European Ministry of Defence halted and relaunched • Expected decision in Q4 2022
• Hosted a Tactical UAV industry day for the Norwegian Defense sector with many guests from the Nordic Defense region, which is a focus area for the company
• Various media have highlighted the ongoing work undertaken on behalf of EMSA, driving inbound interest in the company's solutions
• Extraordinary interest and demand for available systems and solutions, effect starting from Q2
• Included in FT 1000 annual list of fastest-growing European companies for the second year in a row, ranked #2 in the Aerospace & Defence category

Maritime overview

CAMCOPTER & Aerosonde ready for lift-off in four European countries

TEUR	Q1 2022	Q1 2021	Growth
Revenue	991	441	124%
EBITDA	340	79	327%
EBITDA Margin	34%	18%

*Q1 2022 includes vertical overhead and sales costs

Current contract backlog: EUR 43.6m

• Deployed on ten EMSA Oil Pollution Response (OPR) vessels, performed two drills and had daily operations on one of the vessels under the OP1/OP12 contracts with EMSA (Indago operations)
• Continued to support European Fishery Control Agency (EFCA) for fishery inspections onboard Lundy Sentinel and Aegis
• Implemented the Textron Aerosonde and Lockheed Martin Indago platforms into the EU RPAS data center
• The NOx measurement and CO2 verification activity were at all time high with Ecoxy delivering a record high quarter.
• High activity preparing for deployments in Q2
• Camcopter operations in France and Germany and Aerosonde operation in the Baltic Sea deployed in early Q2 for EMSA

SECURITY overview

Changed security situation in Europe leads to dramatic increase in demand for drone solutions

TEUR	Q1 2022	Q1 2021	Growth
Revenue	1.006	831	21%
EBITDA	46	134	-25%
EBITDA Margin	5%	16%

*Q1 2022 includes vertical overhead and sales costs

Current contract backlog: EUR 9.9m

• Revenue mainly from sales of the Lockheed Martin Indago platform.
• AirRobot contribution related to MRO activity and patent licence fees
• Investment in sales activity led to reduction in Q1 EBITDA
• Received order for entire inventory of Lockheed Martin Indago systems, with revenue effect of EUR 0.8m in Q2.
• AirRobot's AR100-H successfully introduced to the U.S market at the AUVSI Xponential drone conference in Orlando in April
• Quotes given for more than EUR 25 million in the last three weeks

DroneMatrix ACQUISITION OFFERS DRONE-IN-A-BOX

Supplementing Nordic Unmanned with remote drone operations technology

• Acquired a 55% share in DroneMatrix, with a right and obligation to acquire 100% within three years
• Drone technology company implementing Drone-In-A-Box solutions
• Fully autonomous AI-powered Drone-In-A-Box solution will add significant value to the Security segment, as well as the Logistics, Maritime, and Infrastructure verticals
• The combination of Drone-In-A-Box solutions with the Railway and Logistics will enable Nordic Unmanned to advance the planned services within rail, and cargo delivery onshore and offshore
• The Nordic Unmanned Operation Centre will remotely control the Drone-In-A-Box operations under the LUC of Nordic Unmanned. In addition, Nordic Unmanned will gain access to the Benelux market for our existing portfolio of solutions and services
• Recently awarded a breakthrough contract by the Port of Antwerp, commencing in the third quarter of 2022. The drones will be used for autonomous monitoring of the port. In addition, drones will be used on demand to inspect for oil leaks or assist in emergency situations
• Headquarters at Hasselt, Belgium with 15 employees
• DroneMatrix had revenues of EUR 324,000 and a gross margin of 77 percent in 2021
• Revenue effect in 2022 and there will be an increase in the Nordic Unmanned order backlog of EUR 1m
• Closing expected at the end of Q2 through a share purchase of EUR 0.975m and an equity contribution of EUR 1.5m within 2022

LOGISTICS overview

Breakthrough quarter as Equinor project kicks off

TEUR	Q1 2022	Q1 2021	Growth
Revenue	369	75	388%
EBITDA	15	7	101%
EBITDA Margin	4%	10%

*Q1 2022 includes vertical overhead and sales costs

Current contract backlog: EUR 2.4m

• Q1 revenue growth of 388% and already passed full year 2021.
• Equinor contract representing the main source of revenue in Q1. Onshore test program is successfully completed.
• Offshore and onshore projects involving the Staaker Logistic Drone and the CAMCOPTER will scale up the operational activity in the Logistics vertical significantly in coming quarters.
• Camcopter has performed 89 delivery flights year to date
• Staaker Logistics Drone has performed 153 delivery flights year to date

Infrastructure overview

High development activity as new product solutions are maturing

TEUR	Q1 2022	Q1 2021	Growth
Revenue	152	276	-45%
EBITDA	-10	78	-113%
EBITDA Margin	-7%	28%

*Q1 2022 includes vertical overhead and sales costs

Current total contract backlog: EUR 3.3m

• Revenue decline due to limited activity from framework contract
• Continuous development of the Staaker Railway Drone
• Railway Drone #001 shown to the world at the AUVSI Xponential drone conference in Orlando.
• Railway Drone is currently on trials with a client in the U.S
• Operated the Railway Drone cross-Atlantic during the AUVSI Xponential conference in the U.S

HIGLIGHTS OPERATIONAL UPDATE

MARKET OUTLOOK APPENDIX

EXPECTED FLEET UTILIZATION CAMCOPTER 2022

Photo by one of our Indago pilots whilst on mission on the Lundy Sentinel for EFCA

HIGHLIGHTS OPERATIONAL HIGHLIGHTS MARKET OUTLOOK APPENDIX

EUR 59 million Total contract backlog

Change since Q4

Q1 - Added new contract backlog

Lockheed Martin Indago orders of EUR 0.8 million, to be delivered in Q2 2022

CAMCOPTER deployed in Fehmarn, Germany

EUR 59 MILLION CONTRACT BACKLOG

CRM PIPELINE – THE MARKET IS EXPANDING

• Europe still represents 81% of pipeline value
• Still large untapped market opportunities
• Potential awards of EUR 377m during 2022
• Increase in prospect opportunities
• Commercial timelines are still unpredictable
  • The "prospect" stage is now probability-weighted, reducing the value compared to Q4 2021

2022 Outlook

• Target of EUR 1.5bn in CRM pipeline value at the end of 2022
• Target backlog of more than EUR 50m for delivery in 2023

CRM pipeline of EUR 1.1bn per April 2022

Map of CRM pipeline

¹⁹ HIGHLIGHTED POTENTIAL AWARDS NEXT SIX MONTHS

Offshore energy

Several offshore logistical concepts, shore to offshore and maritime environmental monitoring in Europe/Middle East/Brazil

Perimeter security solution

Industrial security solution with DroneMatrix for several global companies

Heimdal Indago payload

Multiple opportunities

Urgent requests for tactical UAV(s)

System integrator capability for governmental customers in Europe

Armed Forces - Germany

145 AR100-H systems and MRO activity for Bundeswehr.

²⁰ INCREASED CAPACITY AND MARKET MATURITY WILL DRIVE GROWTH

2022 growth

Reiterating guidance of revenues of around 3x 2021

Increased staff

Targeting around 210 employees by the end of 2022

Growth opportunities

Pursuing M&A, partnerships and organic growth opportunities in Europe, Middle East, North and South America

Continuing increased fleet value

Targeting EUR 22 million in fleet value by the end of 2022

2022 EBITDA

Full year 2022 EBITDA margin is expected to be in the range of 10-20% from current operations

2025 growth

Targeting EUR 400 million in revenue in 2025, with an EBITDA margin above 20%

Image from a operation with EFCA by one of our Lockheed Martin Indago pilots

Unaudited condensed consolidated income statement - IFRS

Amounts in EUR	Q1 2022	Q1 2021
Total operating income	2 519 308	1 624 962
Cost of goods sold	840 398	531 129
Personell expenses	2 196 046	1 012 884
Depreciation and amortisation expenses	1 012 477	242 053
Other operating expenses	1 370 907	756 081
Total operating expenses	5 419 828	2 542 148
Operating profit (loss)	-2 900 520	-917 186
Net financial income (expenses)	-259 777	323 972
Income (loss) before tax	-3 160 297	-593 213
Income tax expense (benefit)	-634 584	-106 786
Net income (loss)	-2 525 713	-486 427
EBITDA	-1 888 043	-675 133
Allocation of profit or loss:
Profit/loss attributable to non-controlling interests	-54 149	-
Profit/loss attributable to the parent	-2 471 564	-486 427

• Q1 2021 has been converted from NGAAP to IFRS. See conversion bridge page 27
• Depreciation of fixed assets amounts to TEUR363 and Intangible assets TEUR 582, and TEUR 67 related to Right-of-use-assets
• Net financial include disagio of TEUR 124 compared with TEUR 347 agio in 2021

Unaudited consolidated condensed Balance Sheet IFRS

	31.03.2022	31.12.2021
ASSETS
Non-current assets
Goodwill	1 805 251	1 747 063
Other intangible assets	12 549 434	11 812 673
Deferred tax assets	3 554 638	2 879 890
Total intangible assets	17 909 323	16 439 627
Aircraft and spareparts	20 120 930	8 978 943
Assets under construction	-	5 814 778 1 788 938
Fixtures and fittings	1 940 300
Right-of-use assets	1 188 488	1 255 568
Total tangible assets	23 249 719	17 838 227
Investment in associated companies	3 003	3 003
Total financial non-current assets	3 003	3 003
Total non-current assets	41 162 045	34 280 857
Current assets
Inventory	1 757 165	2 022 313
Trade receivables	2 241 513	433 715
Other short-term receivables	3 085 562	3 489 689
Cash and cash equivalents	610 161	5 594 033
Total current assets	7 694 401	11 539 750
TOTAL ASSETS	48 856 447	45 820 607

• Balance Sheet as per 31/12 has been converted from NGAAP to IFRS
• Increase in tangible assets are related to investments in the first Aerosonde System delivered in Q1
• Right of use assets are related to lease obligations for office, other facility lease and cars

Unaudited consolidated condensed Balance Sheet IFRS

EQUITY AND LIABILITIES Equity	31.03.2022	31.12.2021
Equity attributable to equity holders of the parent	24 813 880	26 911 741
Non-controlling interests	903 342	957 576
Total equity	25 717 222	27 869 316
Non-current liabilities
Interest bearing loans and borrowings	8 584 337	6 893 392
Non-current lease liabilities	877 271	923 666
Other non-current liabilities	34 864	409 212
Deferred tax liabilities	764 978	807 477
Total non-current liabilities	10 261 450	9 033 747
Current liabilities
Trade payables	914 926	1 166 000
Interest bearing loans and borrowings	6 654 869	3 086 797
Current lease liabilities	369 242	369 242
Public duties payable	831 859	743 818
Other current liabilities	4 106 879	3 551 687
Total current liabilities	12 877 775	8 917 544
Total liabilities	23 139 225	17 951 291
TOTAL EQUITY AND LIABILITIES	48 856 446	45 820 607

• Equity Ratio of 53%
• Long term loan increase related to the partial financing of the Aerosonde system
• Current Interest bearing loans and borrowings are related to short term portion of long term debt (Instalments due next 12 months), and overdraft facility drawings

Unaudited consolidated condensed statement of cash flow

Cash flows from operating activities		Q1 2021
Profit or loss before tax	-	3 160 297
Adjustments to reconcile profit before tax to net cash flows:
Net financial income/expense		134 987
Depreciation and impairment		945 397
Amortisation and impairment of Right-of-use assets		67 080
Share-based payment expense		132 564
Working capital adjustments:
Change in inventory		265 148
Changes in trade and other receivables	-	1 807 799
Changes in trade and other payables	-	251 073
Changes in provisions and other liabilities		703 291
Net cash flows from operating activities	-	2 970 703

	Cash flows from investing activities

Net cash flow from investing activities	-	7 159 666
Interest received		1 062
Purchase of capitalized other intangible assets	-	1 319 127
Purchase of property, plant and equipment	-	5 841 601

Cash flow from financing activities

Proceeds from issuance of equity		79 127
Transaction costs on issue of shares	-	3 302
Net disbursments overdraft facility		3 388 835
Proceeds from new debt (short / long term)		2 515 897
Repayment of debt (short / long term)	-	645 715
Payments of lease liability	-	81 426
Interest paid	-	120 733
Net cash flows from financing activities		5 132 683
Net increase/(decrease) in cash and cash equivalents	-	4 997 685
Cash and cash equivalents at beginning of the year/period		5 594 033
Net foreign exchange difference		13 813
Cash and cash equivalents, end of year		610 161

• Purchase of property, plants and equipment's are mainly related to the 1st Aerosonde system
• Purchase of capitalised other intangible assets are related to development of own IP
• Proceeds from issuance of equity are related to employee option program

IFRS BRIDGE 1st Quarter 2021

	NGAAP (NOK)	NGAAP FUR	Effect of transition to IFRS	Reclassification from NGAAP to IERS	IFRS (EUR)
Total operating income	16 622 462	1 624 962			1 624 962
Cost of goods sold	5 654 159	552 657	-21 528		531 129
Personell expenses	8 417 706	821 503	191 381		1 012 884
Depreciation and amortisation expenses	2 139 654	208 303	33 750		242 053
Other operating expenses	6 476 254	631 189	124 893		756 081
Total operating expenses	22 687 773	2 213 652	328 496		2 542 148
Operating profit (loss)	-6 065 311	-588 690	-328 496		-917 186
Net financial income and expenses	3 311 137	325 505	-1 533		323 972
Income (loss) before tax	-2 754 174	-263 185	-330 028		-593 213
Income tax expense (benefit)	-606 028	-57 901	-48 886		-106 786
Net income (loss)	-2 148 146	-205 284	-281 143		-486 427

Main IFRS EBITDA effects

• Lease + TEUR 36
• Tender Cost TEUR 89
• Training Cost –TEUR 134
• Share based payment TEUR 108

Number of shareholders: 4021 The Staaker Logistics Drone in flight, carrying two cargo boxes

GROUP & FINANCIAL POSITION Q1

Available liquidity of EUR 5.1m

TEUR	Nordic Unmanned Group
	Q1 2022	Q1 2021
Revenue	2.519	1.620
EBITDA	-1.888	-682

• Cash and committed credits include cash position and committed loan facility drawn in the second quarter.
• Undrawn overdraft is our working capital facility.
• Undrawn credit line is available for part financing of our fleet expansion program.

EXPANDING OUR LUC PRIVILEGES

LUC continues to give a competitive advantage

Key comments

29

• The LUC is a certificate that enables Nordic Unmanned to self-approve operations
  • LUC is becoming a "must" for customers in the drone market
• Expanding our Light UAS operator Certificate (LUC) privileges adding new systems and operational types with four revisions of the certificate year to date
• From 9 specific types of drones up to 25 kg, to general all drones up to 25 kg for specified operational types.
• Adding the BG class up to 32 kg
• Adding the Aerosonde.

Including all drones up to 25kg

REVENUE PER FLIGHT HOUR

The Lockheed Martin Indago 3 during testing of the logisitical payload

The CAMCOPTER S-100 before take-off in Fehmarn, Germany

DEFINITIONS

Revenue per flight hours	Total revenue (excluding revenue for the Security business area) for the period divided by total flight hours (excluding flight hours for the Security area) for the period.
EBITDA	Profit/(loss) for the period before net financial items, income tax expense, depreciation and amortization
Contract backlog	Contract backlog includes the maximum remaining estimated value of signed contracts
Historic win rate	Value of opportunities above EUR 200k won divided by aggregate value of closed targeted opportunities above EUR 200k
Revenue per country	Revenue divided into country of end-user
MRO	Maintenance, repair & overhaul
CRM estimate	Value of CRM is converted to Euro
Definitions in sales pipeline	Prospect: Potential leads not formally confirmed Qualified lead: Lead formally confirmed or received from client Awaiting award: RFI / RFP / Proposals / Offer / Tender submitted
Value adjusted win rate	Based on 97 historical opportunities with value above EUR 200.000

Disclaimer – forward looking statements

• In addition to historical information, this presentation contains statements relating to our future business, events and/or results. These "forward-looking" statements include certain estimates, assumptions and projections of Nordic Unmanned AS (the "Company"), based on information currently available to the Company. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements preceded by, followed by or that include the words "estimate, "plan," project," "forecast," "intend," "expect," "predict," "anticipate," "believe," "think," "view," "seek," "target," "goal" or similar expressions; any projections of earnings, revenues, expenses, synergies, margins or other financial items; any statements of the plans, strategies and objectives for future operations, including integration and any potential restructuring plans; any statements concerning proposed new products, services, developments or industry rankings; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.
• Forward-looking statements do not guarantee future performance and involve risks and uncertainties. By their nature, forward-looking information and statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements that may be expressed or implied by the forward-looking information and statements in this report. These forward- looking statements are based on the current estimates and projections of the Company. No update or revision will be made to forward-looking statements contained herein, whether as a result of new information, future events or otherwise. Although Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies, which are impossible to predict and are beyond Company's control, Company cannot assure achievement or accomplishment of such expectations, beliefs or projections.
• The release, publication or distribution of this report/presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this report/presentation is released, published or distributed should inform themselves about, and observe, such restrictions. This report/presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Nordic Unmanned AS.