Nekkar — Investor Presentation 2021

Nov 25, 2021

Preben Liltved, CEO Kristoffer Lundeland, CFO

25 November 2021

Disruptive technologies, sustainable results

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The Presentation has been produced by Nekkar ASA (the "Company") for information purposes only and does not in itself constitute, and should not be construed as, an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction. The distribution of this Presentation may be restricted by law in certain jurisdictions, and the Recipient should inform itself about, and observe, any such restriction. Any failure to comply with such restrictions may constitute a violation of the laws of any such jurisdiction.

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An investment in the Company involves significant risk, and several factors could adversely affect the business, legal or financial position of the Company or the value of its securities. For a description of relevant risk factors we refer to the Company's annual report for 2019, available on the Company's website www.nekkar.com. Should one or more of these or other risks and uncertainties materialize, actual results may vary significantly from those described in this Presentation. An investment in the Company is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of their investment.

This Presentation contains certain forward-looking statements relating to inter alia the business, financial performance and results of the Company and the industry in which it operates. Any forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts and are subject to risks, uncertainties and other factors that may cause actual results and events to be materially different from those expected or implied by the forward-looking statements. The Company cannot provide any assurance that the assumptions underlying such forward-looking statements are free from errors nor do any of them accept any responsibility for the future accuracy of opinions expressed in this Presentation or the actual occurrence of forecasted developments.

This Presentation speaks as at the date set out on herein. Neither the delivery of this Presentation nor any further discussions of the Company shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not assume any obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation (including in relation to forward-looking statements).

This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts.

Nekkar ASA Q3 2021 highlights

Highlights Q3 2021

• Revenue of NOK 128 million (Q3 2020: NOK 98 million)
• Operational EBITDA* of NOK 39 million (NOK 14 million)
• EBIT of NOK 36 million (NOK 14 million)
• Three new upgrade/spare parts contracts and one newbuild project for Shipyard Solutions, totaling NOK 69 million in contract value.
• Downscaled 1:20 model of SkyWalker ready for testing
• Successful testing of Starfish circulation systems

Events subsequent to quarter

• Formed "Inteliwell" joint venture with Transocean

Nekkar ASA Disruptive technologies, sustainable results

Leverage unique and recognized drilling and lifting heritage and execution ability from "Drilling Bay" in Kristiansand, within:

To develop disruptive technologies that can make high-growth industry sectors, such as aquaculture and renewables, even more sustainable and profitable

Nekkar in brief

NOK 360 million revenue company (2020)

66 FTEs

Headquarter in Kristiansand, Norway

Listed on Oslo Stock Exchange (NKR)

Digital business models to capitalise on unique hard-tech to unlock and drive value from SaaS revenue potential

Digital Solutions

Creating a disruptive digital well construction solution company together with Transocean

Operator benefits from JV offering:

Expedition of the well construction process

Improve consistency of operators' operations

Reduced drilling costs and environmental footprint through more reliable and faster drilling operations

NOK 69 million in new contracts won in Q3; efforts to win more upgrade/service contracts is yielding results

Control system upgrade	Spare parts order	Sale of transfer trolleys in storage	Sale of transfer system
• Customer in Spain • Syncrolift contract, Intellilift to deliver completely new control and drive systems • Contract value: NOK 18 million	• Customer in Singapore • Contract value: NOK 13 million	• Trolleys currently stored in Italy • Sold to client in Turkey • Contract value: NOK 10 million	• Newbuild project • US customer • Contract value: NOK 28 million

Starfish: the future of sustainable aquaculture

Key features

DUAL SAFETY SOFT CLOSED CAGE

Protection against sea lice, increased fish welfare and reduced risk of escape

DATA DRIVEN FISH FARMING

Better control and improved growth with data insights

WASTE MANAGEMENT

Collection of waste contributes to circular economy – recycle sludge into value

SUSTAINABILITY & EFFICIENCY

Cost efficient fish farming with significantly lower environmental risk

Full-size Starfish in production, ready for testing H1 2022

SkyWalker – the future wind turbine installation RENEWABLES

Increased weather window due to guided lift

Reduced turbine installation time

Turbines can be larger and installed higher

Possible to reduce tower oscillation

Smaller installation footprint required

Remotely controlled, unmanned lifting platform

Low or zero emission machine

Easier transport to site Technology based on active heave compensation (AHC)

RENEWABLES

SkyWalker: 1:20 model completed in Q3 2021

Cooperation with Fred. Olsen Renewables and major wind turbine OEM

Co-funded by Innovation Norway

Scale model test and wind tunnel planned for Q4/Q1 22

Develop, manufacture and test of prototype on site: 2022 and 2023

Financial highlights

Key financials

Revenues (MNOK) Operational EBITDA & margin (%)

Order intake and backlog

Order intake per half-year period Order backlog development

Nekkar ASA Financial highlights

Consolidated statement of profit and loss

Nekkar ASA		Unaudited Q3	Unaudited YTD		Audited Full-Year
MNOK	2021	2020	2021	2020	2020
Revenue	128	98	342	228	359
Reported EBITDA	37	14	92	16	77
Operational EBITDA1	39	14	95	33	71
EBIT	36	14	89	15	75
Capitalised R&D	6	4	20	10	16
EBITDA %	28.6 %	14.1 %	26.9 %	7.1 %	21,5 %
Op. EBITDA % 1	30.9 %	13.8 %	27.9 %	14.4 %	19,9 %
Order intake	69	264	85	701	701
Order backlog	948	1,297	948	1,297	1,167
EPS (NOK) 2	0.25	0.16	0.73	0.18	0.65

¹ Excl. losses/gain on FX contracts not qualifying for hedge accounting ² Continued operations

• Third quarter revenue of MNOK 128, representing an increase of 30% year-on-year
• YTD Q3 revenue of MNOK 342 compared to MNOK 228 in 2020, equivalent to an increase of 50%
• Revenue growth driven by high activity in Shipyard Solutions
• Third quarter operational EBITDA of MNOK 39 compared to MNOK 14 in the same period last year
• Loss on FX hedging contracts amounted to MNOK 2 in the third quarter of 2021 compared to MNOK 0 in 2020
• YTD Q3 operational EBITDA of MNOK 95 compared to MNOK 33 in 2020. Operational EBTIDA margin of 27.9% and 14.4% respectively
• Order intake of MNOK 69 in Q3 and a solid order backlog of MNOK 948 at the end of the quarter
• Capitalized development costs (R&D capex) of MNOK 6 in the third quarter and MNOK 20 as per YTD.
• Third quarter earnings per share of NOK 0.25 compared to NOK 0.15 in 2020

Nekkar ASA Disruptive technologies, sustainable results

Summary Q3 2021 & outlook

Strong financial performance in quarter

		Solid financial position, no interest-bearing debt

Solid long-term order backlog of NOK 948 million; strategic efforts to win more upgrades/service contracts in Shipyard Solutions is yielding results

Progression as planned for Starfish and SkyWalker development projects xx

Summary Outlook

Lower newbuild order intake in 2021, but Nekkar expects project awards in H2 2021

Expected growth in service/upgrade revenues

Aquaculture

Continue development and testing of circulation systems and digital platform for monitoring and controlling Starfish cage

Full-size version planned to be ready for testing in early 2022

Renewables

Development of 1:20 SkyWalker model

Develop, manufacture and test of prototype on site: 2022 and 2023

Digital Solutions

Solid leads on oil & gas SaaS projects Third of three first Syncrolift projects commissioned in Q3

Nekkar ASA Alternative performance measures

INTRODUCTION TO ALTERNATIVE PERFORMANCE MEASURES (APMs)

Nekkar Group (Nekkar) discloses alternative performance measures in addition to those normally required by IFRS. Nekkar is of the opinion that APMs are providing enhanced insight into the operations and prospects of the company. APMs are used as an integral part of the management and board of directors' key performance measure reporting and controls. Furthermore, securities analysts, investors and other interested parties frequently use such performance measures.

BASIS FOR PREPARATION

This presentation provides financial highlights for the third quarter and YTD September 2021 for Nekkar ASA. The consolidated financial statements for Q3 2021 have been prepared in accordance with IAS 34 Interim Financial Statements, however the interim accounts do not include all the information required for a full financial statement and should therefore be read in connection with the audited consolidated financial statements of 2020.

The interim financial figures are not audited.

PROFIT MEASURES

EBITDA is short for "earnings before interest, taxes, depreciation and amortisation" in the consolidated income statement.

Nekkar defines "Operational EBITDA" as EBITDA excluding losses/gain on FX contracts not qualifying for hedge accounting.

EBIT is short for "earnings before interest and taxes". EBIT corresponds to "operating profit/loss" in the consolidated income statement.

Margins such as EBITDA and EBIT are used to compare relative profit between periods. The margins are calculated as EBITDA or EBIT divided by revenue.

ORDER INTAKE MEASURES

Order intake and order backlog are presented as APMs as they are indicators of the company's revenue generation and operations in the future.

Order intake includes new signed contracts in the period, in addition to expansion of existing contracts and any cancellations of contracts. For newbuild contracts, the order intake is based on the signed contract value excluding potential options and change orders.

Order backlog represents the estimated value of remaining work for signed newbuild contracts and does not include the value of service orders.

nekkar.com