Goodtech — Investor Presentation 2021

Nov 5, 2021

Margrethe Hauge Presentation Q3 2021 CEO Goodtech ASA

Agenda

• Highlights
• Financial update
• Strategic update
• Outlook

Highlights

• Satisfactory enquiry level and orderbook growth, still delay in capital investments
• Results impacted by several one-off effects:
  • Cost related to acquisition
  • Projects write downs in Åland
• Expanding organization and investing in digital solutions
• Strategic roadmap established
• Acquiring Avanti Engineering to strengthen the position in Northern Norway

Highlights

• Healthy underlying performance
• Significant investment in digitalization
  • WizX
  • Cyber security
• Expanding organization
• Strengthened sales organization
• Establishing region NordVest and Nord

• Satisfactory enquiry level but delay in capital investments
• Several pilot projects

• Growing order back log
• Project write down impacting the results negatively
• Restructuring and expanding organization

Highlights Third quarter 2021

• Project write down in Åland and one-off effects impacting result negatively
• Significant investment in digitalization
• Growing order back log, but delay in capital investments post Covid-19
• Expanding organization

Revenue distribution 3Q-21

Positive volume growth expected to continue

Revenue (LTM)

EBITDA (LTM)

• The industry is investing in efficiencies, market activity level is high
• Positive revenue development likely to continue, increase in construction projects expected
• Solid project execution
• Improved order back log in Åland following the restructuring process.
• Significant investments in digital solutions and resources
• Environmental business in Åland is re-established, but it takes time to grow order back log and margins, with set backs from project write downs
• EBITDA and margins expected to improve going forward

8

Group Balance Sheet

Net cash/-net interest bearing debt

Leasing obligations included in accordance with IFRS16 from 1.1.2019.

Equity

300,0

Strong order backlog development

• Sales and market activity in the Group is high
• Decision on capital projects take somewhat longer post Covid, and clients are still hesitant to take investment decisions. However, signs of recovery with several tenders expected to be decided shortly.
• Good order intake in Q3, with Åland awarded contract for Hindås waterplant of MSEK 50 (July) and further small/mid cap projects awarded both in Sweden and Norway.
• We see that customers are following the trend of moving data to cloud, and demand for cyber security services is increasing.
• Note that backlog projects normally only accounts for ~50% of annual revenues - engineering services, support functions and other income partly included in backlog

12

Larger Project Wins in the Quarter

Leading Technology Partner

• Well positioned
• Addressing a large market
• Independent one-stop shop
• Operational excellence

Strategic Platform

A trusted partner from project generation to aftermarket services

Avanti Engineering

• Located in Mo i Rana and Nesna
• Leading player within automation, digitalization and robotization
• Complementing Goodtech's core competencies and adding 16 employees to the Group
• Core activity within processing and aqua industry
• Part of Goodtech's ambition to strengthen its position in the Northern region and within the aqua industry

Region NordVest

• Merging Trondheim, Førde and Bergen into one large region with 70 employees
• Reducing administrative cost and encouraging a closer cooperation and coordination of core competencies
• Improved market support

Outlook

• Goodtech is well positioned within our core markets; environment, aquaculture, metal, oil & gas, processing and food industry
• Automation and digitalization will be key to increase our customers competitiveness
• Favorable market conditions with growing demand for digitization and robotization solutions
• Strategic roadmap ready to execute
• Digital transformation has just started

Thank you!