Ole Falk Hansen CEO, Nekkar ASA

Nekkar ASA | 14.11.2024

Disclaimer

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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 2023, 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 in brief

Positioned for growth in ocean-based industries Environmental, digitalization, and energy efficiency megatrends are reshaping oceanbased industries, creating significant opportunities for innovation and sustainable growth

Industrial active ownership of technology companies Leveraging a strong industrial heritage and scalable technology to drive efficiency and sustainability

Solid operations & financial flexibility Consistent and robust financial performance, supported by a solid balance sheet with enables strong cash flow generation, which is strategically reinvested to drive further profitability and sustainable growth Proven track-record of shareholder value creation Demonstrated share holder value creation through disciplined M&A transactions, prudent financial management and capital allocation

Revenue 2023 MNOK 575

Order backlog (30/09/24) MNOK 704

MNOK 159 in cash No interest–bearing debt

Employees 128

Headquarters Kristiansand, Norway

Stock listed OSE (NKR)

Industrial technology company driving efficiency & sustainability for ocean-based industries

World-class expertise

Scalable software leveraged across the portfolio

In-house innovation & commercialization capabilities

Proven track-record delivering complex and profitable projects

Engaged industrial

Long-term active owner

Buy-to-own strategy

Focus on profitable growth

Strong cash flow to ensure flexibility

Flexible ownership model

Individual degree of integration to maximize synergies and value per company

Focus on value-adding activities

Portfolio overview

Companies

The global leading provider of shipyard solutions for safe and efficient ship docking

Intelligent load handling systems, such as cranes and gangways, for renewables, subsea, and aquaculture vessels Acquisition completed in Q3 – 15th August 2024

Industrial software solutions focused on digitalizing workflows through automation and remote-control systems for drilling and offshore load handling

Full-service ICT and digitalization partner for the global maritime industry

Impact Technology Ventures Associated companies (below 50% ownership)1

The leading provider of semi-closed and closed-cage solutions for the aquaculture industry

Net profit MNOK 42 (MNOK 22 in Q3/23)

FiiZK

Divestments of two non-core businesses at 213 MNOK enterprise value

Won contract for 2x closed cages in October 2024

Acquisition of Globetech

completed 15 August 2024

Financial highlights: Q3 2024

Revenue of MNOK 140 (162 in Q3 2023)
EBITDA of MNOK 14 (29)
EBITDA margin of 10.3% (17.8%)
Net profit of MNOK 42 (22)
EPS of 0.40 (0.20)
Strong balance sheet: MNOK 159 in cash, no interest-bearing debt, MNOK 200 undrawn credit facility • Solid order backlog of MNOK 704 at quarter-end (747)
Order intake: MNOK 83 (61) driven by Syncrolift business

Subsequent to end of Q3:

- Signed contract for shiplift and transfer system with Norwegian Defence Estate Agency, worth MNOK 164 • FiiZK won contract for 2x closed cages in October 2024

Operational highlights | Q3 2024

Established business Growth companies • Five-year service agreement with Dubai Maritime City • Contract with thyssenkrupp Marine Systems • Hand-over of 23.250T shiplift and transport system for undisclosed submarine base – largest project in financial size for Syncrolift ever • Contract with Norwegian Defence Estate Agency worth MNOK 164 (Q4) Impact technology venture

• Ongoing partnership discussions for SkyWalker as major component replacement tool

Execution of existing 70t & 150t crane contracts • Finalizing US GoM InteliWell trial • Purchase order from Hanwha Ocean
High tender activity but taking time as limited track record
~170 contracted vessels on recurring service agreements (+20 since acquisition)
Strong demand from existing customer base

Associated growth company

Divestments of two non-core businesses: MNOK 213 in enterprise value
Award for 2 x Protectus closed fish cages (Q4)

Key financials | Per quarter

Order intake and backlog | Per quarter

1 Does not account for FX fluctuations in existing contracts

2 Order intake/backlog does not include MUSD 24 option with ASMAR Chile or MNOK 164 contract with Norwegian Defence Estate Agency

BUSINESS UPDATE

Syncrolift | Q3 update

	Syncrolift Q3 update
Market & Sales	• Comprehensive five-year+ service agreement with Dubai Maritime City • Contract with thyssenkrupp Marine Systems for upgrade of ship transfer system, valued at 5 MEUR including options • Contract from Norwegian Defence Estate Agency worth MNOK 164 (Q4) • Continued high tendering activity			The leading provider of safe &
Financials	• Revenue slowdown due to loss of projects earlier on in the year and progress in existing project portfolio • EBITDA margin impacted by lower volumes	Ownership MNOK 149	Employees 52 155
Operations	• Handover in August of shiplift project in Cochin, India • Hand-over of 23.250T shiplift and transport system for undisclosed submarine base – largest project in financial size for Syncrolift ever • Finalized commissioning of DMC transfer systems

The leading provider of safe & efficient shipyard solutions

Mission: Improve shipyard docking safety and efficiency – making shipyards more flexible and profitable

Global installed base and service network

Global footprint with more than ²⁰⁰operational shiplifts and 6 service hubs

Syncrolift uniquely positioned to capitalise on growing naval industry investments • Electric Winches with wire technology on a rigid platform • State-of-the-art remote control & monitoring Integrated provider of shiplift and transfer system • The only total supplier with solutions for any type of shiplift and transfer systems (FlexTrolley and Rail Transfer)

Modern & failsafe shiplift technology

-

Market leader in naval contracts

submarine lifts, a market share of 90% of all submarine lifts worldwide
Syncrolift is maintaining its undisputable market position with a total of 15 • The only company having delivered shiplift & transfer systems for nuclear submarines

Syncrolift naval deliveries in recent years

Global defence/naval spending expected to grow

Increased spending worldwide

EU defence spending reached a record EUR 270 billion in 20232

Global defence spend growing to US\$ 2.5tn by 20283

World military arsenals to double in size by 20304

Predicted naval market growth5

"McKinsey analysis shows that the naval market could grow from approximately €78 billion in 2024 to more than €100 billion in 2033."

Sources: 1Serco Group Plc, 2Carnegie Endowment for International Peace, 3Markets & Markets, 4European Commission, 5 McKinsey & Company

Recent contract wins underline Syncrolift's competitiveness in naval sector thyssenkrupp Marine Systems

Location: Germany

Scope: Upgrade of existing static transfer system for submarines into

Value: Up to MEUR 5 including options

Schedule: Different batches between 2024 and 2028

Norwegian Defence Estate Agency

Location: Norway

Scope: Newbuild shiplift and ship transfer system for submarines, plus service and maintenance support Schedule: Delivery of shiplift in 2029

Value: MNOK 164

High visibility and tendering activity

1 Execution period and timing of contract awards may be impacted by external factors outside of Nekkar's control. Order intake/backlog does not include MUSD 24 option with ASMAR Chile or MNOK 164 contract with Norwegian Defence Estate Agency

Techano Oceanlift | Q3 update

Market & Sales
- companies

Financials the company's solutions

Operations Offshore

Intelligent offshore lifting & load handling solutions

Intellilift | Q3 update

Market & Sales • Extension of purchase order from Hanwha for drilling control system to existing rig • Tendering for drilling automation, simulators and other drilling controls • Revenue primarily driven by external drilling projects • EBITDA margins with upside potential • Drilling control system to Hanwha

Financials

Operations

Data-driven performance for ocean-based industries

MNOK

Globetech | Q3 update

Market & Sales Financials • ~170 contracted vessels on recurring service agreements (+20 since acquisition) • High market activity from customer meetings and shipping conferences • Commercial synergies with Techano Oceanlift and Intellilift • YTD revenue of MNOK 64 - solid 20% year-on-year growth • Strong EBITDA levels YTD of ~20 % • Consolidated from 15 August 2024 (45 days) – 9 MNOK revenue in Nekkar Q3 • Post-acquisition integration progressing well and according to plan • Strategy and growth plan refined together with management • High travelling activity for technical crew driven by new vessels and upgrades for existing customer base

Operations
-

Full service maritime IT provider Securing operations at sea

Globetech: A new platform with multiple growth levers A strategic platform for continued investment 20% • Robust and capable management team • Attractive market and potential targets for consolidation and bolt-on acquisitions Niche maritime ICT provider with solid profitable growth • 10+ years track record of profitable growth and delivering solid financials • Repeat business & sticky customer base

-

Multiple demand drivers for Globetech's offering

20%

disruption

Industry 4.0 Cyber security IoT & Robotics IMO &

1 2024b budget per 31. Dec 2023

Renewed stability and growth in FiiZK after successful 12-month turnaround

Breakthrough contract

Delivery of 2 x Protectus closed fish cages to leading Norway-based fish farmer

Market validation of new and improved closed fish cage product building on experience from the 20x previously delivered systems
-
- strength = safe working platform
- extra escape protection and fish handling
- o 6 x seawater intakes at 30m water depth provide fresh, lice-free water to the cage
- and in the water column outside
- o System for automatic O2-regulation and advanced control and management system for automatic operation of the facility

• Innovative product features underline sustainability profile: ^o Perimeter of 156 metres and volume of approx. 30,000m3 ^o Specially designed floating steel collar with long lifespan and high ^o Heavy-duty 30,000m3 PVC tarpaulin bag as main barrier, with net for ^o Faeces and waste feed collected in sludge trap at the outlet ^o Sensor network continuously monitors water quality inside the cage

Closed cage solutions in sea solves key challenges for fish farmers

Zero lice treatment experienced in FiiZK deliveries

PREDATOR ATTACKS

Reduced risk of predators such as bluefin tuna, seals, and jellyfish

Zero predators experienced in FiiZK deliveries

FJORD HEALTH

Improved fjord health as waste feed is filtered and collected

Significant growth in closed-caged farming technologies – upside with changes in regulations

Increased focus on fish welfare and environmental risk driving demand for FiiZK's products

FINANCIAL UPDATE

Nekkar financial highlights

Profit & Loss, Q3, YTD 2024

Nekkar financial highlights










Profit & Loss, Q3, YTD 2024						Revenue

MNOK	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
Revenue	140	162	442	396	575
Syncrolift	110	149	360	358	515
Intellilift	12	6	31	25	34
Techano Oceanlift	10	9	52	16	30
Globetech	9	0	9	0	0	Profitability
Other incl. eliminations	-2	-2	-10	-2	-5
EBITDA	14	29	65	77	109
EBIT	12	27	57	71	101
Net finance	34	2	27	0	8
Profit (loss) before tax	46	29	84	71	109
Income tax expense	4	7	13	16	26
Profit (loss) for the period	42	22	72	55	83
EBITDA margin	10,3%	17,8%	14,7%	19,3%	18,9%
						last year
Net capitalized development costs1	6	0	17	8	19
Order intake	83	61	286	236	478
Order backlog	704	747	704	747	803	Sales
	0,40	0,20	0,68	0,49	0,78

1. Net of received funding
EPS (NOK)

Revenue

-

Profitability

last year • Solid EPS for the quarter of 0.4 impacted by the contribution from FiiZK
-

Sales

• Net capitalized development cost primarily include development cost related to a new series of offshore/subsea cranes in Techano and development of technology in Syncrolift

Balance sheet

Balance sheet, Q3 2024

Balance sheet


				Assets
Balance sheet, Q3 2024
	30.09.2024	30.06.2024	31.12.2023
MNOK
ASSETS
Intangible assets and goodwill	196	77	67
Right of use assets	16	13	14
Tangible assets	9	9	9
Financial assets	78	48	49
Inventory	22	18	12
Accrued non invoiced production	162	144	144
Trade receivables Other short-term receivables	94 25	71 36	85 6	milestones.
Derivative financial instruments	4	4	20
Bank deposits	159	227	194
Total assets	765	646	601
				Cash
LIABILITIES
Deferred tax liabilities	37	26	18
Long term provision	34	0	0
Lease liabilities	16	13	13
Trade payables	42	36	57
Prepayments from customers	42	56	39
Other current liabilities	98	68	46
Total equity	497	446	427

Total liabilities & equity	765	646	601

		107
Net working capital	119		124

Assets

- Intangible assets and goodwill increased by MNOK 119 in Q3 of which MNOK 114 is related to the acquisition of Globetech • MNOK 76 million of financial assets in Q3 are related to the investment in FiiZK, an increase from MNOK 47 in Q2 Working capital

milestones.
Working capital increase of MNOK 13 compared to Q2 influenced by Syncrolift projects reaching invoicing • Accrued non invoiced production and accounts receivables at high levels - expected to be converted to cash over the coming months • Quarter-end cash position of MNOK 159 impacted by the net cash effect of the Globetech acquisition of MNOK 56 (excluding FiiZK which is not consolidated) • Available credit facility; MNOK 200 provides additional financial flexibility Long term liabilities and equity • The long-term provision of MNOK 34 relates to an estimated cash payment for the remaining 33% stake of Globetech to be made in 2028 • No interest-bearing debt • Solid equity, representing a 65 % equity ratio

Cash

-

Cash flow

Cash flow development, Q3 2024

- Cash flow • Cash flow from business is negative at MNOK 1 in Q3 2024, driven by a slight increase in working capital

Cash flow from purchase of treasury shares in the period of MNOK 11 • The net cash effect of the Globetech acquisition was MNOK 56 derived from a cash consideration of MNOK 66 less a cash balance at the acquisition date of MNOK 10 • The total net cash outflow for the quarter was MNOK 68. However, the company maintains a strong cash position of MNOK 159 at the end of the quarter -56
- 159

Nekkar's capital allocation strategy

Portfolio growth

Investments in existing portfolio companies to fuel organic growth while maintaining a strong balance sheet

Share buy-backs

New business

Strategic M&A to strengthen Nekkar's defined business segments

Innovation & R&D

Prudent development of Impact Technology Ventures to validate technology and market potential

Available capital, Q3	2024 MNOK
Net cash	159
Undrawn credit facility	200
Total	359
Expecting continued going forward	solid operational cash flow
Share buy-backs, Q3/23	– Q3/24 30.09.24
Number of shares	purchased 3,931,946
Average price (NOK)	9.521
Total transaction value	(NOK) 38,054,479

STRATEGIC UPDATE

earnings potential during past 12-18 months

Significant expansion of Nekkar's portfolio and

1 Revenue LTM Q3 24 including Globetech and FiiZK revenues

Nekkar combines industrial operating experience with long-term active ownership

Continued development and organic growth in existing operating companies

Nekkar portfolio, overview of maturity level and key focus areas

Demonstrated effective capital allocation with strategic and cost-effective acquisitions

2027 ambitions to reach 2+ bn NOK in revenues

Summary Q3 2024 & outlook

Summary Outlook

Summary Q3 2024 & outlook
Summary	Outlook
Strong net profit and EPS, while revenue and EBITDA was negatively affected by lower activity in Syncrolift	 Backlog provides good visibility for 2025  High tendering activity
Value-accretive acquisition of Globetech completed on 15 August, provides Nekkar with higher proportion of recurring	 Successful implementation of InteliWell's breakthrough award likely to open up further rig market opportunities xx
revenues going forward	 Execution of backlog for two offshore cranes  High tendering activity
Several recent important contract wins for Syncrolift	 Continue growth in # vessels served  Expand offering with adjacent services
Successful FiiZK turnaround, breakthrough award for Protectus validates new closed fish cage solution	 Substantial interest in closed fish cage solutions  Breakthrough award for Protectus expected to generate further market opportunities
	Next update: Q4 and interim full-year 2024 financial results (13 February 2025)

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 2024 for Nekkar ASA. The consolidated financial statements for Q3 2024 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 2023.

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.

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 contracts.