Nekkar — Earnings Release 2024

Aug 22, 2024

Nekkar ASA: Second quarter and half-year 2024 financial results

Nekkar ASA: Second quarter and half-year 2024 financial results

22.8.2024 07:00:00 CEST | Nekkar ASA | Half yearly financial reports and audit

reports / limited reviews

22 August 2024 - Nekkar ASA (Nekkar) delivered revenue of NOK 150 million in

this year's second quarter, up 13 percent from the same quarter last year (132).

EBITDA was NOK 20 million (25), equivalent to a margin of 13.4 percent (18.6%).

Net cash flow in the quarter was NOK 30 million (42). Further, Nekkar has

announced several portfolio value transactions in the second quarter and

subsequent months.

"Our revenue level and cash generation were good this quarter, while our EBITDA

was slightly lower due to differences in project mix and some expected margin

dilution from market entry projects in Techano Oceanlift. We are largely a

project-driven organization which means that quarterly fluctuations will occur,

but the fundamentals of our business remain strong and we expect our margins in

the coming quarters to reflect this," says Ole Falk Hansen, CEO of Nekkar.

Nekkar's order backlog stood at NOK 725 million (864) at the end of the second

quarter. The order backlog provides good visibility for both 2024 and 2025.

After two quarters with high order intake, no major orders were awarded in the

second quarter resulting in an order intake of NOK 15 million (148).

"We are experiencing high tender activity in all our business segments as our

portfolio companies are exposed to high investment levels in offshore energy,

maritime and naval industries. We therefore retain a positive outlook," adds Ole

Falk Hansen.

Nekkar's balance sheet remains strong with NOK 227 million in cash as of 30 June

2024, no interest-bearing debt, and an undrawn NOK 200 million credit facility.

A ROBUST AND MORE DIVERSIFIED NEKKAR

Active use of M&A is a key component in Nekkar's strategy to create a more

robust, diversified and profitable group. Just over one year ago, Nekkar

consisted of one mature company (Syncrolift), one growth company (Intellilift)

and two innovation projects (SkyWalker and Starfish). Since then, Nekkar has

added growth companies Techano Oceanlift, FiiZK and - subsequent to the end of

the second quarter - Globetech to its portfolio.

In July, Nekkar entered into an agreement to acquire 67 percent of the shares of

fast-growing and profitable maritime connectivity and digital service provider

Globetech AS. In 2027, Nekkar will acquire the remaining 33 percent of

outstanding shares in Globetech.

Moreover, portfolio company FiiZK, where Nekkar holds a 39 percent ownership

share, has during the summer signed agreements to divest both FiiZK Digital and

majority of FiiZK Protection. The sales are part of a streamlining that will see

FiiZK focus on unconventional farming methods including closed and semi-closed

cages for fish farming. Both transactions are expected to be completed in the

third quarter 2024.

"We have significantly expanded Nekkar's portfolio and earnings potential during

the past 12-18 months, without incurring any interest-bearing debt. I believe

this demonstrates our ability to identify and execute interesting acquisitions,"

says 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 124 million

(118) in this year's second quarter. Techano Oceanlift had revenue of NOK 19

million (7) but with softer margins on its market entry projects. Intellilift

delivered revenue of NOK 11 million (9).

Nekkar's associated company, FiiZK, which is not consolidated into Nekkar's

financial accounts, was profitable in the second quarter of 2024 as a result of

restructuring of the operations.

PRESENTATION AT 08:00 AM TODAY

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

presentation can be viewed from this URL:

https://channel.royalcast.com/landingpage/hegnarmedia/20240822_2/ -

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

ast.com%2Flandingpage%2Fhegnarmedia%2F20240822_2%2F&data=05%7C02%7C%7C3a981ba4c1

59481953be08dc8ba29403%7C2347c95974d84debb62d396439ac2b48%7C0%7C0%7C638538777726

909341%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1ha

WwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=OXG64Mdgs0wN3BWBnPeOwKdk94l6mTpTs6mOfuIhK%2

B0%3D&reserved=0

The presentation material and the half-year financial report are enclosed to

this announcement.

LUNCH PRESENTATION IN OSLO

In addition, Nekkar will hold a physical presentation at 12:00 (CET) today at

Pareto Securities AS, Dronning Mauds gate 3, 0250 Oslo. Attendees can register

their attendance with events.no@paretosec.com.

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 Financial Statement Q2 2024.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/18210109/4870/Nekkar%20ASA%20Fina

ncial%20Statement%20Q2%202024.pdf

Nekkar ASA Q2 H1 2024 presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/18210109/4871/Nekkar%20ASA%20Q2%2

0H1%202024%20presentation.pdf