Hunter Group ASA

Investor Presentation • Nov 2, 2016

Q3 - 2016 IR Report

3 rd November 2016

Disclaimer

This presentation includes forward-looking statements which are subject to risks and uncertainties that could cause actual results and events to differ.

Even though the Company believes that the expectations reflected in the forward-looking statements are reasonable, BXPL cannot assure that the presented predictions will be achieved. It has to be taken into account that certain risks and uncertainties that are tied to the presented forward-looking statements, such as political, economical, financial and legal changes in the markets BXPL operates in, are beyond the Company's ability to control or predict. Therefore readers should not place undue reliance on the forward-looking statements.

BXPL does not intend and does not assume the obligation to update any of the presented forward-looking statements in light of new information except to the extent required by applicable law and/or regulation.

1. Introduction

• 1. Financial status
• 1. Project status o Development Program
• 1. Outlook
• 1. Questions
• 1. Introduction
• 1. Financial status
• 1. Project status o Development Program
• 1. Outlook
• 1. Questions

	Quarters			Year to date	Year End
Unaudited figures in NOK 1000	Q3 2016	Q2 2016	Q3 2015 Note		30.09.2016	30.09.2015	31.12.2015
Revenues
Other Income	5	42	$\bf{0}$		47	$\bf{0}$	$\bf{0}$
Total Revenues	5	42	$\Omega$		47	$\mathbf o$	0
Operating Expenses
External services for development project	201	1 1 8 5	3 0 3 3		1497	6767	8726
Payroll and related costs	1 1 6 6	750	2883		2 9 9 6	7938	9 9 21
Other operating expenses	731	1 2 4 9	2 1 5 5		3 0 8 8	7 5 4 7	8 0 8 3
Capitalized development costs	$-632$	$-1872$	$-4425$		$-3105$	$-11055$	$-14124$
Total Operating Expenses	1466	1312	3 6 4 7		4476	11 197	12 606
EBITDA	$-1461$	$-1270$	$-3647$		$-4429$	$-11197$	$-12606$
Depreciation	15	37	48		95	157	200
Operating profit (loss)	$-1476$	$-1.307$	$-3694$		$-4525$	$-11353$	$-12807$
Net financial income (loss)	$-105$	$-129$		$-109$ 3,10	$-347$	$-337$	$-450$
Profit (loss) before taxes	$-1,581$	$-1436$	$-3804$		$-4871$	$-11690$	$-13257$
Tax on ordinary result	0	$\bf{0}$	$\mathbf{0}$		0	$\mathbf{0}$	0
Net profit (loss)	$-1,581$	$-1436$	$-3804$		$-4871$	$-11690$	$-13257$
Profit (loss) attributable to equity holders of the parent	$-1,581$	$-1436$	$-3804$		$-4871$	$-11690$	$-13257$
Earnings per share	-0,09	$-0,08$	$-0,21$		$-0,26$	$-0,63$	$-0,72$
Earnings per share diluted	$-0,09$	$-0,08$	$-0, 20$		$-0,26$	$-0,63$	$-0,71$

ASSETS	30.09.2016	30.06.2016	30.09.2015	Note	31.12.2015
NON-CURRENT ASSETS
Capitalized development costs	149 316	149 132	145 808	2,6	147 768
Patent rights	387	387	387		387
Total intangible assets	149 703	149 519	146 195		148 154
Property, plant & equipment	28	21	144		101
Total tangible assets	28	21	144		101
TOTAL NON-CURRENT ASSETS	149 730	149 539	146 339		148 255
CURRENT ASSETS
Accounts receivables	$\bf{0}$	6	0	6	$\bf{0}$
Other receivables	2 2 2 7	2 5 1 8	5 6 7 6		3 6 3 0
Total receivables	2 2 2 7	2524	5676		3 6 3 0
Cash and cash equivalents	327	287	1091		586
TOTAL CURRENT ASSETS	2 5 5 4	2811	6767		4 2 1 6
TOTAL ASSETS	152 284	152 350	153 106		152 471

EQUITY AND LIABILITIES	30.09.2016	30.06.2016	30.09.2015	Note	31.12.2015
EQUITY
Share capital	2 3 1 7	2 3 1 7	2 3 1 7	3	2 3 1 7
Share premium	218 070	218 070	218 070	4	218 070
Other paid in capital	3869	3 9 0 3	4 0 3 1	3	4 1 6 7
Total paid in equity	224 256	224 290	224 419		224 555
Retained earnings	$-163219$	$-161638$	$-156781$		$-158347$
Total retained earnings	$-163219$	$-161638$	$-156781$		$-158347$
TOTAL EQUITY	61 038	62 652	67 638		66 207
LIABILITIES
Capitalized grants	81 500	79 500	75 000	6	75 000
Total non-current liabilities	81 500	79 500	75 000		75 000
Accounts payables	1979	2 8 4 7	3 5 1 0	3,8	3 0 7 8
Public duties payables	456	180	614		474
Debt financial institutions	6 9 1 0	6820	5 0 4 6	10	6711
Other short term liabilities	402	351	1 2 9 9		1 0 0 1
Total current liabilities	9747	10 198	10 469		11 264
TOTAL LIABILITIES	91 247	89 698	85 469		86 264
TOTAL EQUITY AND LIABILITIES	152 284	152 350	153 106		152 471

		Quarters		Year to date	Year end
Unaudited figures in NOK 1000	Q3 2016	Q2 2016	Q3 2015 Note		30.09.2016	30.09.2015	31.12.2015
Contribution from operations*	$-1494$	$-1215$	$-3510$		$-4727$	$-10.825$	$-12098$
Change in accounts receivables and accounts payables	-861	47	742	3,8	$-1098$	1 1 1 6	683
Change in other receivables and payables	543	$-822$	1 2 2 7		$-298$	$-731$	$-936$
Net cash flow from operating activities	$-1813$	$-1990$	$-1542$		$-6124$	$-10440$	$-12351$
Capitalization of development cost	$-632$	$-1872$	$-4425$	2	$-3105$	$-11055$	$-14124$
Net cash flow from investment activities	$-632$	$-1872$	$-4425$		$-3105$	$-11055$	$-14124$
Public grants	0	2 0 5 7	1733	1	2619	5 1 3 8	8 0 6 0
Contribution from industry partners	2 500	2 000	1 500	6	6 500	8 3 9 0	8 3 9 0
Interest received	4	18	2		22	38	54
Interest paid	$-109$	$-147$	$-111$		$-369$	$-375$	$-505$
Proceeds from borrowings financial institution	90	$-108$	3 0 7 8	10	198	5 0 4 6	6711
Net cash flow from financing activities	2 4 8 5	3 8 2 0	6 2 0 1		8970	18 2 36	22 711
Total net changes in cash flow	40	$-42$	234		$-259$	$-3258$	$-3764$
Cash and cash equivalents beginning of period	287	329	857		586	4 3 5 1	4 3 5 1
Cash and cash equivalents end of period	327	287	1091		327	1091	586
Profit (loss) attributable to equity holders of the parent	$-1581$	$-1436$	$-3804$		$-4871$	$-11690$	$-13256$
Employee options	$-33$	55	136	5	$-298$	372	508
Depreciation	15	37	48		95	157	200
Financial income	$-4$	$-18$	$-2$		$-22$	$-38$	$-54$
Financial expenses	109	147	111		369	375	505
*Contribution from operations before tax	$-1494$	$-1215$	$-3510$		-4727	$-10825$	$-12098$

• 1. Introduction
• 1. Financial status
• 1. Project status
• o Development Program
• 1. Outlook
• 1. Questions

Development Program

• Expanding the operational envelope of the 2nd generation Badger tool
• Qualify and prove four core technology solutions:
• Drilling Solution
• Cutting Transport Solution
• Compaction Solution
• Locomotion Solution

Development Program - Status

• Milestone 1 completed
• Ultrasonic transducer qualified
• Feasibility study of locomotion system completed
• Cutting transport concept completed
• Milestone 2 work in progress
• Ultra sonic transducer test program in University of Glasgow commencing

Development Program - Status

Funding

• While working closely with existing Oil Company sponsors and providers of research and innovation program funding, Badger continues its work to secure sufficient funding for the remaining part of the Development Program.
• Partnership
• Statoil: Statoil signed the Letter of Intent (8th April 2016) confirming their support to the Development Program
• CNPC-DR: The negotiations with CNPC-DR are ongoing. Even though the process is taking longer than anticipated, CNPC-DR has confirmed their intention to join the Badger Explorer Development Program.
• Industrial Partners

• Badger Explorer has not prioritized this in Q3 2016

• 1. Introduction
• 1. Financial status
• 1. Project status o Development Program
• 1. Outlook
• 1. Questions

Outlook

The work to develop and qualify solutions for the Development Program is ongoing with a steady progress reducing the technical risk level

The Badger team continues its work to secure sufficient funding for the remaining part of the Development Program

• 1. Introduction
• 1. Financial status
• 1. Project status o Development Program
• 1. Outlook
• 1. Questions

Thank you for attending