Nekkar — Earnings Release 2021

May 31, 2021

Nekkar ASA: first quarter 2021 interim financial results

Nekkar ASA: first quarter 2021 interim financial results

31.5.2021 07:00:01 CEST | Nekkar ASA | Additional regulated information required

to be disclosed under the laws of a member state

31 May 2021 - Nekkar ASA (Nekkar) reported revenues of NOK 93 million in this

year's first quarter, an increase of 40 percent from the same quarter last year

(Q1 2020: NOK 66 million). Operational EBITDA was NOK 17 million (5), equivalent

to an operational EBITDA-margin of 18 percent. The order backlog was in excess

of NOK 1 billion at the end of the quarter.

"It was another solid quarter both operationally and financially. Our Shipyard

Solutions business area continues to deliver healthy results, while our

disruptive technology development projects - the Starfish closed fish cage and

the SkyWalker wind turbine installation system - progressed according to plan,"

says Preben Liltved, CEO of Nekkar.

The foundation of Nekkar's business is superior engineering, electrification,

automation, and digitalisation competence and heritage from "Drilling bay" in

Kristiansand which is found in the company's digital solutions business area.

Nekkar aims to apply this competence as levers to develop disruptive

technologies that can make high-growth industry sectors - such as aquaculture

and renewable energy - even more sustainable, productive, and profitable.

Nekkar initiated ocean testing of its innovative "Starfish" closed fish cage in

the first quarter. Starfish is a fully automated, closed fish cage solution that

is digitally and remotely managed. At the heart of the system is a software

platform for remote surveillance, data acquisition, bioanalytics, and production

control.

In the first quarter, Nekkar received a NOK 21 million grant from Innovation

Norway to progress with the development of a disruptive installation technology

that could significantly reduce the cost and environmental footprint associated

with wind turbine installations. The solution - called SkyWalker - uses active

heave compensation derived from offshore lifting systems combined with digital

solutions that allow for remote-controlled and automated solutions.

According to Nekkar's own estimates, SkyWalker can generate 60-80 percent

reduction in environmental footprint, CO2 emissions and time spent on installing

an onshore wind farm with 20 wind turbines.

"Starfish and SkyWalker are two examples of how we can apply our unique

engineering, automation and digitalisation competence to develop disruptive

technologies that create sustainable results for our customers. The results from

the Starfish pilot test are encouraging and the interest in our new technologies

remain high," says Preben Liltved.

Nekkar reported revenues of NOK 93 million in the first quarter 2021, up from

NOK 66 million in the corresponding period in 2020. The company reported an

operational EBITDA-result of NOK 17 million (5), equivalent to an EBITDA-margin

of 18 percent (7.2%). Operational EBITDA excludes losses/gain on foreign

exchange contracts not qualifying for hedge accounting. Reported EBITDA was NOK

17 million, a significant increase from NOK -24 million in the first quarter

last year which was impacted by significant currency fluctuations due to the

Corona pandemic.

Order intake in this year's first quarter was NOK 16 million (9). Order backlog

was NOK 1,043 million (752) per 31 March 2021. The order backlog is mainly

related to contracts for Nekkar's ship lift and transfer systems, delivered

under the Syncolift brand.

Syncrolift signed a five-year service agreement with a US customer during the

first quarter. Nekkar has identified growth in service revenue from its

substantial installed base of docking facilities as a key focus area going

forward.

"There is significant potential in providing services and upgrades in our

current installed base of ship lifts and ship transfer systems. Our objective is

to increase service revenues considerably in coming years," adds Liltved.

The first quarter business update presentation is enclosed to this announcement.

Nekkar ASA will hold a business update presentation, including presentation of

key financial figures today at 08:00 CET. The webcast presentation can be

followed from the following URL:

https://channel.royalcast.com/landingpage/hegnarmedia/20210531_1/

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act.

CONTACTS

* Preben Liltved, CEO, +47 480 62 691, IR@Nekkar.com

ABOUT NEKKAR ASA

Nekkar (OSE: NKR) is an industrial technology group offering impact technologies

combined with high-end software solutions. The group combines 50 years' heritage

from the world's number one shiplift company, Syncrolift, with new investments

into sustainable, digitalised technology businesses that aim to unlock growth

within ocean-based industries such as offshore energy and renewables and

aquaculture.

ATTACHMENTS

1Q 21_Nekkar Operational Update.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/608/825/1Q%2021_Nekkar%20Operatio

nal%20Update.pdf