Nekkar — Earnings Release 2024

Nov 14, 2024

Nekkar ASA: Q3 2024 financial results | Introduces NOK 2+ billion revenue ambition

Nekkar ASA: Q3 2024 financial results | Introduces NOK 2+ billion revenue ambition

14.11.2024 07:00:00 CET | Nekkar ASA | Additional regulated information required

to be disclosed under the laws of a member state

14 November 2024 - Nekkar ASA (Nekkar) delivered a solid net profit of NOK 42

million in this year's third quarter, up 91 percent from the same quarter last

year (22). Revenue ended at NOK 140 million in the quarter (162) and EBITDA was

NOK 14 million (29), giving a margin of 10.3 percent (17.8%). Further, Nekkar

today announces an ambition to reach NOK 2+ billion in revenues in 2027.

"Our strong net profit is driven by the successful turnaround in aquaculture

supplier FiiZK and contribution from our portfolio companies. Revenue was down

this quarter due to lower activity in Syncrolift, but the combination of

recently won contracts and continued high tender activity in all our segments

means that we maintain our growth outlook," says Ole Falk Hansen, CEO of Nekkar.

Order intake was NOK 83 million in this year's third quarter (61), driven by new

Syncrolift contracts in Dubai and Germany. Nekkar's order backlog stood at NOK

704 million at the end of the quarter (747), giving good visibility for 2024 and

2025. The order backlog does not include the recently won NOK 164 million

contract with the Norwegian Defence Estate Agency.

"Syncrolift has recently won strategically important contracts to deliver

shiplifts and ship transfer systems for submarines in both Norway and Germany.

Syncrolift is the world's only supplier with experience from integrated

solutions - lift and transfer system - for submarine handling. This puts the

company in a unique position to benefit from the extensive growth in the naval

market that has been predicted for the next decade," adds Ole Falk Hansen.

Nekkar's balance sheet remains strong with NOK 159 million in cash as of 30

September 2024, no interest-bearing debt, and an undrawn credit facility of NOK

200 million.

FIIZK TURNAROUND

Associated company FiiZK, in which Nekkar holds a 39 percent stake, completed

the divestments of FiiZK Digital and majority of FiiZK Protection during the

third quarter. The sales were part of a streamlining where FiiZK will focus on

unconventional farming methods including closed and semi-closed cages for fish

farming. The two non-core businesses were sold for an enterprise value of NOK

215 million. Subsequent to the end of the third quarter, FiiZK was awarded a

contract to deliver two large, "Protectus" closed fish cages to an undisclosed

Norway-based fish farmer.

"We invested NOK 50 million for our 39 percent ownership share in FiiZK. Based

on the proceeds from the divested businesses and the recent market breakthrough

for FiiZK's new closed cage technology, this investment looks very promising so

far," says Ole Falk Hansen.

BUSINESS SEGMENT UPDATE

Nekkar's most mature business, Syncrolift, which is the world's leading supplier

of shiplifts and ship transfer systems, delivered revenue of NOK 110 million

(149) in this year's third quarter. The revenue slowdown was partly due to loss

of projects earlier in the year.

Intellilift delivered revenue of NOK 12 million in this third quarter, a

doubling from the same period last year (6). The company also secured an

expansion of the purchase order for a new drilling control system in the

quarter.

Techano Oceanlift had revenue of NOK 10 million (9) but with softer margins on

its market entry projects. Revenue in the quarter were affected by lower

progress on existing crane projects.

During the third quarter, Nekkar completed the acquisition of 67 percent of the

shares in maritime connectivity and digital service provider Globetech AS.

Globetech contributed NOK 9 million in revenue in the quarter, but was only

consolidated in from 15 August 2024. Since the acquisition, Globetech has added

20 vessels under recurring service agreement and now supports approximately 170

vessels.

NOK 2BN+ AMBITION

Nekkar today announces its strategic priorities towards 2027. The Group's plan

is to continue the development and organic growth of Nekkar's current operating

companies, and to develop a strategically balanced Nekkar portfolio through M&A

activity. This will be underpinned by solid underlying operations with focus on

profitability, cash flow generation and disciplined capital allocation.

Nekkar is currently majority shareholder of four portfolio companies. By 2027

the company plans to increase this to 6-8 companies. The ambition is to reach

NOK 2+ billion in revenue in 2027. LTM revenue per 30 September 2024 for

Nekkar's four portfolio companies and its associated company FiiZK is NOK 888

million.

"Our NOK 2 billion target is partly based on the attractive growth opportunities

we see within our current portfolio. This will be coupled with selective,

accretive acquisitions. We have demonstrated our ability to combine effective

capital allocation with strategic and cost-effective acquisitions. Market

analysts predict increased investment in all our market segments, including

naval, maritime, offshore energy and aquaculture, and we aim to capitalise on

these market opportunities," says Ole Falk Hansen.

PRESENTATION AT 08:00 AM TODAY

Nekkar ASA invites investors, analysts and media to a presentation of the

company's third quarter 2024 financial results today at 08:00 CET

The webcast presentation can be viewed from this URL:

https://channel.royalcast.com/landingpage/hegnarmedia/20241114_9/ -

https://nor01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fchannel.royalc

ast.com%2Flandingpage%2Fhegnarmedia%2F20241114_9%2F&data=05%7C02%7C%7Cee62308863

4c42992fa208dcd7075f57%7C2347c95974d84debb62d396439ac2b48%7C0%7C0%7C638621673870

816165%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1ha

WwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=uH%2FVeXZ2eEOGU7pYQ%2BbjM%2FR1ChkO57QjtFGTZ

qnFrfY%3D&reserved=0

Questions can be submitted during the live webcast. The Q3 presentation material

is enclosed to this announcement.

LUNCH PRESENTATION

In addition, Nekkar will hold a physical presentation at 11:00 (CET) today at

SEB, Filipstadveien 10 (Building B, 8th floor), Oslo. Attendees can pre-register

at ca@seb.no

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

Q3 2024 Financial result and business update.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/18322904/5262/Q3%202024%20Financi

al%20result%20and%20business%20update.pdf