Nekkar — Investor Presentation 2019

Sep 12, 2019

Pareto Oil & Offshore Conference 2019

NEKKAR ASA Presentation COB Trym Skeie

CEO Toril Eidesvik

Oslo l 12 September 2019

Cargotec / MacGregor transaction completed – new name Nekkar ASA

• Closing of the Cargotec / McGregor transaction took place 31 July 2019, and subsequently the company changed name to Nekkar ASA from formerly TTS Group ASA
• Repayment of all bank debt and redemption of company's convertible bond. Total number of shares post conversion is 105.0m
• The BoD has proposed a dividend of NOK 4.0 per share, or NOK 420m *
• Net cash position estimated at NOK ~0.3bn post dividend payment and settlement of the transaction **
• All time high order backlog for the continued business entity Syncrolift

Nekkar (Beta Bootis) is a white to yellow giant star that can be located in the northern constellation of Bootes

* Subject to approval by EGM, to be held 19 September 2019 ** Final settlement will be based on financials as per closing 31 July 2019. Net cash not adjusted for negative working capital position

Nekkar ASA – Providing a listed platform for value creation through continued and new business

Nekkar at a glance

• Following the Cargotec / MacGregor transaction Nekkar is in the process of establishing its new strategic direction
• The continued business unit Shipyard Solutions (Syncrolift) will be an instrumental building block
• New business will focus on delivering sustainable solutions to ocean-based industries within 3 main areas based on the industry knowledge built up in the Kristiansand region
• The Nekkar shares are traded on the Oslo Stock Exchange under the ticker NKR

• Syncrolift is the market leader for shiplifts & transfer systems to repair and newbuilding yards with 75% market share
• Customized Syncrolift installations lift everything from the smallest ship to vessels weighing as much as 30,000 tons
• Recent demand is driven by Syncrolift product's attractive value proposition and increased demand for maintenance, upgrade and repair at shipyards as well as navy
• Temporarily decline in sales and EBITDA-margin is mainly due to progress delays in some projects that will not affect long term profit margins within the Syncrolift projects
• Order backlog is all time high and support high activity levels well into 2022
• Syncrolift has the main office in Drøbak, Norway

Syncrolift at a glance Syncrolift key financials

Annual sales (NOKm) and EBITDA-margin (%) 2016 – Q2/19*

Order backlog development 2016 – Sep. 2019 (NOKm)

Significant market potential for growth within service and upgrades

• There is an extensive service and after market for shiplift systems consisting of annual inspections, maintenance, spare replacements and upgrade
• Service and after-market support currently only constitute less than 10% of Syncrolift revenue
• ~90% of shiplifts are Syncrolift / Rolls-Royce installations (designs & drawings owned by Nekkar), however Syncrolift only serves ~15% of its total combined installed base
• Recurring maintenance & inspections targeted for larger projects & upgrade work
• Revenue growth will require international service network expansion, organic and/or through partnerships
• Syncrolift Singapore Pte. Ltd., established in 2019, to serve the South East Asian market

Syncrolift's new 'Fast Docking' solutions have received great market acceptance

• Syncrolift has in recent years developed eight new systems within docking and ship handling that seek to improve yard productivity and operations
  • Reduce man-hours, increase precision, smarter way of working
• Six out of eight products have been commercialized five are sold and in operation
• New products currently account for ~5% of Syncrolift sales

Intellilift offers products leveraging and enabling both digitalization and automation

• Intellilift delivers open software platforms to collect, monitor and control data for the different offshore energy industries
• Nekkar acquired 51% share in Intellilift in Q2/19. Solid revenue growth since inception in 2016 and above cashbreak even on running basis
• Intellilift has developed 'Phoenix' a system that collects different data sources into a unified visualization & monitoring platform- enabling remote operation
• Top-tier end customers AkerBP (drilling operations) and Ørsted (offshore wind)

Control systems for smarter solutions Remote Operator Environment Monitor 'Phoenix'

Offshore Energy & Renewables enables the green shift in offshore drilling as well as solutions for offshore renewables

• Nekkar has developed several products leveraging benefits of next generation PM winches, electrification and battery energy storage
• Nekkar's single layer winch (SLW) hoisting system is providing benefits such as improved energy efficiency, power regeneration, as well as higher uptime and reduced maintenance
• Signed LOI for the newbuild market with an industrial player
• Handling solutions for renewables and offshore industries
  • Utilizing the benefits of electrification and automation to harvest substantial improvements through structural reengineering

Product portfolio Illustration Nekkar's single-winch hoisting system

Nekkar has developed "Starfish" - a fully closed technology improving fish welfare and production economics

• Developing next generation aquaculture solution with major industrial listed salmon-farming company
• Closed salmon cage with beneficial economics. Limiting environmental impact and reducing fish mortality
• Includes applications improving automation, power usage, monitoring and enabling remote control
• 'Starfish' consist of a fully closed inner cage with roof, and an outer safety net attached with circulation units providing a constant flow of water into the cage

Nekkar ASA – a proven industry builder focused on returning value to shareholders

• Since 1996 Nekkar has built a leading maritime industrial company with operations globally and executed > 30 significant M&A deals
• Totally distributed appprox. NOK 900m, or NOK 9,8/ per share related to divestments of TTS Sense in 2012 and TTS Group in 2019 *
• Solid business platform through Syncrolift, to deliver sustainable and unmatched products and solutions to the ocean-based industry
• Taking advantage of the great potential within electrification, digitalization, automation and smart control
• Strong balance sheet with no gearing and high financial flexibility

Operation in # of countries: 1 14

NEKKAR

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