Arendals Fossekompani

Investor Presentation • Feb 12, 2021

Company Presentation

February 2021

NSSLGlobal today | Committed to delivering high-quality voice and data services to customers anywhere in the world

Satellites are unique in their ability to connect remote locations

Satellite is the "must-have" technology when no other connectivity solution is available

NSSLGlobal: Leading independent provider of satellite communications and IT solutions

Company description

• § Provides reliable and secure voice and data services for communication, crew welfare and connected operations, to predominantly maritime and military mobility markets
• § More than 50 years of experience in the maritime and military mobility markets
• § Brings together the best-in-class satellite solutions from key satellite operators to offer options across C-, L-, Ka- and Ku-band networks along with a hybrid LTE/Satellite solution
• § Partnerships with some of the largest MSS¹ and VSAT² satellite operators, including Inmarsat, Iridium, Thuraya, Telesat, Eutelsat, JCSAT and Intelsat
• § Committed to support customers locally, offering a large infrastructure of global sales and service offices, teleports, and local partners across all the major continents
• § 24/7 network operation centres, which provide nonstop technical support for every customer, whether on land, at sea or in the air
• § Shareholders comprise Arendals Fossekompani ASA (80%) and the management team of NSSLGlobal (20%)

25 beams across 16 satellites Revenue split by segment

1) Mobile satellite services (MSS) provide two-way L-Band satellite communications to global users who are on the go or in remote locations, with terminals ranging in size from handheld to laptop-size units and typically provide less then 1 Mbits bandwidth.

4 2) A very-small-aperture terminal (VSAT) is a two-way satellite ground station with a dish antenna that is smaller than 3.8 meters

Commercial in Confidence

NSSLGlobal is taking full responsibility from satellite to end-user

NSSLGlobal is a Satellite Communication Provider - VSAT Network Operator, System Integrator, Engineering Solution House & Application Developer

Predominately subscription-based revenue model with airtime being the largest revenue contributor

Selected customers

Key customer segments have strong outlook

• § Largest segment and expected to maintain current growth
• § Fleet owners increasingly accept that broadband connectivity brings value for money
• § Expect total numbers of vessels with VSAT to grow from 52,000 in 2019 to 81,000 in 2023
• § Growing trend amongst national navies to adopt commercial VSAT alongside other tactical milsat systems for additional capability/resilience
• § Commercial off-the-shelf products increasingly being used as base for specific customization
• § Navy crew welfare largest driver of service revenue increase

163

Main market drivers | Communicating with the outside world

§ Proprietary, in-house-developed SatLink modems provide VSAT connectivity

§ Connectivity is agnostic in the sense that data can be communicated from VSAT, Wi-Fi, Cellular, L-band satellite (Fleet Broadband or Iridium) or even fiber when docked

§ GEO networks are still dominant, but working actively with emerging LEO/MEO providers

§ Bandwidth (speed) currently up to 100 Mbps, will increase with the new LEOs/MEOs

§ Specialized offerings targeting various niche customer segments, including VSAT Smart@Sea (maritime), Cruise-IP (superyacht), FusionIP (at dock) and Broad-IP (land based)

ü

ü

ü

ü

ü

Main Market Drivers | Crew welfare

Source: The Comsys Maritime VSAT report (2020)

Main market drivers | Intelligent value-added services

Proven financial track record with 6% average growth p.a. and healthy dividends

2) Earnings After Tax (net income)

13

Tenured and experienced management team, with an active and supportive Board of Directors

Key strengths

Serving high-end market	§ 50 years of experience providing high-end satellite communication and IT solutions to demanding customers in the governmental and maritime mobility markets
Global footprint	§ Worldwide presence as service and hardware provider combined with partnerships with all important satellite operators
Recurring revenues and strong cash flow	§ Predominantly subscription-based revenue model providing recurring revenues and consistently healthy dividends
Long-term relationships	§ Long established relationships (+20 years) and contracts with blue chip maritime, government and defense customers
Leading engineering & support capability	§ Renowned for 24/7 technical support & taking full end-to-end service responsibility
Huge market	§ Forecasts* indicate that total annual revenues from the satellite connectivity market could approach USD 100 billion 10 years	in 5-
Positioned for growth	§ Well positioned to exploit growing market opportunities within value-added services such as crew welfare, cyber route optimization, remote cargo monitoring and preventive maintenance	security,

*Source: ARK Investment Management LLC, 2020