Nekkar — Earnings Release 2023

Aug 30, 2023

Nekkar ASA: Second quarter and half-year 2023 financial results

Nekkar ASA: Second quarter and half-year 2023 financial results

30.8.2023 07:00:01 CEST | Nekkar ASA | Half yearly financial reports and audit

reports / limited reviews

30 August 2023 - Nekkar ASA (Nekkar) delivered revenue of NOK 132 million in the

second quarter of 2023, up 32 percent from the same quarter last year (Q2 2022:

100). Operational EBITDA was NOK 27 million (25), equivalent to an operational

EBITDA margin of 20.6 percent (24.7).

"We delivered another solid quarterly financial result. Coupled with a more

diversified revenue base, healthy order intake and high tender activity, we

believe that we are well positioned to generate further growth in the coming

years," says Ole Falk Hansen, CEO of Nekkar.

Order intake in the second quarter of 2023 was NOK 148 million, a significant

improvement from the same quarter last year (24). The order intake includes

three shiplift and ship transfer system contracts for Syncrolift worth

approximately NOK 85 million, and a EUR 4 million crane contract for Techano

Oceanlift.

Nekkar's order backlog stood at NOK 864 million (795) as of 30 June 2023, which

provides excellent visibility for Nekkar's subsidiary Syncrolift in the next

couple of years.

Nekkar reported revenue of NOK 132 million (100) in the second quarter. The

company's operational EBITDA* was NOK 27 million (25), representing a margin of

20.6% (24.7%). Reported EBITDA was NOK 36 million (6), while EBIT was NOK 34

million (4).

Cash conversion has been very strong in the first half of 2023. Cash flow from

operations was NOK 81.7 million in H1 2023 versus NOK 21.9 million in the same

period last year. Net cash flow was NOK 54.8 million in H1 2023 compared to NOK

13.7 million in H1 2022.

Consequently, Nekkar's balance sheet remains solid. At the end of the second

quarter 2023, the company had NOK 236 million in cash, no interest-bearing debt,

and an undrawn NOK 200 million credit facility available for future investments.

In the past couple of years, Nekkar has provided full financial reporting

(profit and loss, balance sheet and cash flow) for Q2/H1 and Q4/H2, with an

operational update and limited financial reporting (profit and loss only) for Q1

and Q3. Going forward, Nekkar will report profit and loss, balance sheet and

cash flow in all four quarters of the year.

BUSINESS SEGMENTS

The second quarter of 2023 was the first quarter when Nekkar generated revenue

from three different subsidiaries.

Syncrolift, which is the world's leading supplier of shiplifts and ship transfer

systems, delivered the main proportion of revenue with NOK 118 million. Recently

acquired subsidiary Tecano Oceanlift, which provides cranes, gangways and fish

handling systems, had revenue of NOK 7 million in the second quarter.

Intellilift delivered revenue of 9 million as it successfully installed its

InteliAutomate solution on board the Transocean Norge deepwater drilling rig

through the InteliWell joint venture, which has Transocean and Viasat as the two

other JV partners.

"We expect Intellilift and Techano Oceanlift to continue to be revenue

contributors going forward. Both companies are pursuing interesting

opportunities, but it is difficult to predict the exact timing of potential

contract awards," says Ole Falk Hansen.

IMPACT TECHNOLOGIES

During the second quarter, Nekkar entered into agreements with three different

offshore wind consortiums that aim to utilise SkyWalker as major component

exchange tool on wind turbine generators should the consortiums' bids be

successful in Norway's first offshore wind licensing round.

"The interest is our SkyWalker tool is constantly growing, and we are highly

encouraged by the high-profile renewables companies that show an interest in

utilising the technology offshore Norway," adds Ole Falk Hansen.

For Starfish, we are pleased to announce that we partner with BEWI Invest

through a joint investment in the aquaculture industry supplier FiiZK. FiiZK is

the leading provider of closed cage systems for fish farming. The company also

provides software tools for optimising fish farming planning, operations, and

analysis.

"The integration of FiiZK's established market position and Nekkar's Starfish

technology strengthens the company's position as the market leading provider of

closed cage solutions and aquaculture software," says Ole Falk Hansen. See

separate stock exchange announcement for more details.

PRESENTATION AT 08:00 AM TODAY

The second quarter and half-year 2023 report and presentation are enclosed to

this announcement.

Nekkar ASA will hold a live webcast presentation today at 08:00 CET. The webcast

presentation can be viewed from this URL:

https://channel.royalcast.com/webcast/hegnarmedia/20230830_1

*Operational EBITDA is defined by Nekkar as EBITDA excluding losses/gain on FX

contracts not qualifying for hedge accounting.

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act.

CONTACTS

* Ole Falk Hansen, CEO, +47 988 14 184, 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, renewables and

aquaculture.

ATTACHMENTS

Nekkar ASA_Q2_2023_presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/2584/3609/Nekkar%20ASA_Q2_2023_pr

esentation.pdf

Nekkar ASA Financial Statement Q2 H1 2023.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/2584/3610/Nekkar%20ASA%20Financia

l%20Statement%20Q2%20H1%202023.pdf