Goodtech — Investor Presentation 2010

Feb 22, 2010

Goodtech ASA

Presentation 2009, fourth quarter

Vidar Låte, CEO

goodtech

---

Agenda

• Highlights
• Financial review
• Outlook 2010

goodtech

---

Highlights, fourth quarter

• Turnover MNOK 160
• Same level as Q4 2008
• EBITDA MNOK 8.5 (5,3% margin)
• 24% lower than Q4 2008, 66% higher than Q3 2009
• Strong cash flow in Q4
• Performance is improving
• Still challenging market within certain areas
• Improved capacity utilization – some geographical variation
• Won new Industry contract for BioMar in October
• Strong order intake in beginning of 2010 confirms that market is improving
• Estimate MNOK 80 in 6 weeks
• Increasing number of prospects in the market – Customers are signing contracts again
• Strengthening Goodtech’s position through acquisitions
• HACO Hydrogeologi og Avløpskompetanse AS taken over in end of October
• Acquisition of Fleximatic AS in February 2010
• Automatic packaging and handling machines

goodtech

---

Market

• Business drivers for growth – market opportunities
• Industry
• Environment

goodtech

---

Goodtech products and services

• Environmental solutions
• Technology products – Product technologies
• Industrial solutions

goodtech

Industrielle løsninger

Produktteknologier

Miljøløsninger

---

Financial Review

goodtech

---

Main figures

(NOK 1.000)	2009	2008	Q4 09	Q4 08
Revenues	562 014	555 257	160 073	163 869
Product expenses	266 971	269 386	75 746	79 749
Salary expenses	203 031	186 347	56 977	54 814
Other operating expenses	64 796	58 301	18 808	18 050
EBITDA	27 216	41 223	8 542	11 257
EBITDA %	4,8 %	7,4 %	5,3 %	6,9 %
Depreciation	5 801	3 366	1 805	1 140
EBIT	21 414	37 857	6 738	10 117
Net financial items	-230	-295	65	-1 428
Profit before taxes	21 185	37 561	6 803	8 689
Taxes	4 707	-267	680	-8 351
Net result	16 478	37 828	6 123	17 040
Earnings per share	0,10	0,25	0,04	0,11
Deluted earnings per share	0,10	0,25	0,04	0,11

goodtech

---

Quarterly revenue - historical

goodtech

---

Quarterly earnings - historical

EBITDA per quarter

Q4 07 impacted by reversed pension benefit obligation of MNOK 6,1

goodtech

---

Financial highlights – Balance sheet

(NOK 1.000)	31.12.09	31.12.08
Fixed tangible assets	24 724	24 746
Intangible assets	210 731	196 722
Deferred tax assets	24 842	28 629
Long-term receivables	0	4 956
Other fixed assets	81	457
Total fixed assets	260 378	255 510
Inventory	22 849	19 753
Accounts receivables	91 485	88 148
Other short term receivables	27 906	35 737
Cash and cash equivalents	118 274	103 096
Total current assets	260 514	246 734
Total assets	520 892	502 244
Total invested equity	251 136	231 573
Total retained earnings	121 582	111 482
Minority interests	596	777
Total equity	373 314	343 833
Long-term debt	27 203	26 401
Short-term debt	120 374	132 011
Total debt	147 577	158 412
Total equity and debt	520 892	502 244

goodtech

---

Financial highlights – Cash flow

(NOK 1.000)	2009	2008	Q4 09	Q4 08
Cash flow from operations	23 367	28 314	40 907	23 939
Cash flow from investments	3 919	-20 039	-614	1 249
Cash flow from financials	12	1 444	611	2 317
Net changes in cash from period	27 298	9 719	40 904	27 505
Net Cash funds at beginning of period	90 187	78 910	72 983	61 124
Effects of exchange rate fluctuation on cash held	-4 040	1 558	-442	1 558
Net Cash funds at end of period	113 445	90 187	113 445	90 187

goodtech

---

Employees per business area

Total no. of employees by 31.12.2009: 347

goodtech

---

Organic growth vs. acquisitions

goodtech

---

Industry business area

goodtech

---

Industry business area - Highlights

• Turnover on same level compared with Q4 2008
• Turnover and order intake lower than expected in Q4, but strong order intake in beginning of 2010
• EBITDA improving
• reduced compared with Q4 2008, but more than doubled compared with Q3 2009
• Completed delivery of Borgland Dolphin Safety system upgrade
• New contracts
• BioMar contracts MNOK 21,7 in October
• New contracts in 2010
• Felleskjøpet Kambo, Portabulk FAB packing line, MNOK10.5
• New Industrial IT contracts for Statoil Integrated Operations MSEK 6.5 / LOI for additional contracts
• Several additional smaller contracts
• Challenging markets but we see increasing number of enquiries
• Increasing quotation volume in many areas

goodtech

---

Industry - figures

NOK 1000	2009	2008	Q4 09	Q4 08
Revenue	404 611	399 975	114 192	116 935
EBITDA	27 580	35 576	8 208	9 987
EBITDA margin %	6,8 %	8,9 %	7,2 %	8,5 %
No. of employees	274	252	274	252

---

Industry – historical figures

Revenues per Quarter

EBITDA per Quarter

---

Environment business area

goodtech

---

Environment business area - Highlights

• Turnover

• Turnover on same level as Q4 2008

• EBITDA

• 25% lower compared with Q4 2008
• Margin 7.6%, down from 10.1% in Q4 2008

• Margins under pressure in public sector

• New contracts in 2010

• VA Syd Malmö, waste water plant upgrade, MSEK 9.2
• Simsholmens waste water plant upgrade, MSEK 10.5

• Several smaller contracts

• Continued strong Biovac sale

• Increasing activity in the market
• Integration of HACO
• Synergies within sales and services
• Product development synergies

goodtech

---

Environment - figures

NOK 1000	2009	2008	Q4 09	Q4 08
Revenue	162 974	159 178	47 551	47 811
EBITDA	12 653	15 597	3 633	4 809
EBITDA margin %	7,8 %	9,8 %	7,6 %	10,1 %
No. of employees	59	55	59	55

---

Environment – historical figures

---

Order book

goodtech

---

Highlights - Product Technologies

• TurboCron
  Development continues according to revised project schedule
• Close follow up of sub-supplier performance
• Installation and completion in March-April, with commissioning thereafter

• Ongoing discussions with Hydro concerning pilot test phase

• New Portabulk FAB version developed

• Implemented in new projects

goodtech

---

Market / Risks for Goodtech

• Market for Industry solutions – some risk
• Investment driven business is still weak, but improving

• Still challenging market compared with normal

• Market for Environmental solutions and products – some risk

• New competitors in the market – more challenging to obtain good margins

• Financial risks for Goodtech

• In general small currency exposure
• In general small risk for contract cancellation

• In general small risk for loss on receivables

• Technology and product development

• Some risk for technical problems causing delay and extra cost.

goodtech

---

Outlook 2010

goodtech

---

Outlook 2010

• Day to day service, maintenance and operation related business expected to perform well
• Involved in several markets. Our products and services are attractive for a broad range of customers
• Investment driven market is improving
• Expect market to continue to develop in a positive way
• Build platform for future organic growth
• Product and technology development as platform for international business development
• Goodtech representation in selected international markets
• Continue building strong Goodtech brand
• Build stronger market position within offshore
• Strengthening our position in Sweden
• Strategic acquisitions
• TurboCron into pilot test phase

goodtech

---

WELCOME BACK!