Nekkar — Investor Presentation 2024

May 16, 2024

Ole Falk Hansen CEO, Nekkar ASA

Nekkar ASA | 16.05.2024

Disclaimer

By reading this company presentation (the "Presentation"), or attending any meeting or oral presentation held in relation thereto, you (the "Recipient") agree to be bound by the following terms, conditions and limitations.

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.

The Recipient acknowledge that it will be solely responsible for its own assessment of the Company, the market and the market position of the Company and that it will conduct its own analysis and be solely responsible for forming its own view of the potential future performance of the Company's business. The Company shall not have any liability whatsoever (in negligence or otherwise) arising directly or indirectly from the use of this Presentation or its contents, including but not limited to any liability for errors, inaccuracies, omissions or misleading statements in this Presentation, or violation of distribution restrictions.

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 in brief

Industrial technology company

Presently a portfolio of established businesses and impact technology ventures within ocean-based industries

World-class engineering expertise

Proven track-record delivering complex and profitable projects Strong in-house innovation and commercialization capabilities

Digitalization of sustainable ocean-based industries

Leveraging software and digitalization to increase efficiency and sustainability for fast-growing industries

Strong industrial ownership and history of value creation

30%+ ownership by Skeiegruppen, which has a solid industrial track record

Revenue 2023 MNOK 575

Order backlog (31/03/24) MNOK 888

MNOK 197 in cash No interest–bearing debt

Employees 94

Headquarters Kristiansand, Norway

Stock listed OSE (NKR)

3

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 ownership

Long-term active owner

Buy-to-own strategy

Focus on profitable growth

Strong cash flow to ensure flexibility

Flexible ownership model to maximize value

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

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

Impact Technology Ventures Associated companies (below 50% ownership)

The leading provider of closed-cage solutions, technical textiles, and software for the aquaculture industry Nekkar operates in four main business segments, focused on sustainable technologies for ocean-based industries

Portfolio

Business

The portfolio consists of mature, financially solid businesses, and new impact technology ventures Nekkar portfolio, overview of maturity level and key focus areas

Highlights: Q1 2024

• Revenue of MNOK 152, up 50% versus Q1 2023 (101)
• EBITDA of MNOK 30, up 33% (23)
• EBITDA margin of 20% (22.6%)
• EBIT of MNOK 28, up 32% (22)
• Strong balance sheet: MNOK 197 in cash, no interest-bearing debt, MNOK 200 undrawn credit facility • Solid order backlog of MNOK 888 at quarter-end (832)
• Order intake of MNOK 188, up 598% (27)

Highlights: Q1 2024
Financial highlights	Operational highlights
• Revenue of MNOK 152, up 50% versus Q1 2023 (101) • EBITDA of MNOK 30, up 33% (23)		• Good project execution • MUSD 5 contract with ASMAR Chile • 5-year maintenance contract in India • MUSD 8 contract with Dubai Maritime City
• EBITDA margin of 20% (22.6%) • EBIT of MNOK 28, up 32% (22)		• Transocean recognizes InteliWell in latest earnings call • New automation system being undertaken with Supermajor in Gulf of Mexico • Control system contract for drillship upgrade
• Strong balance sheet: MNOK 197 in cash, no interest-bearing debt, MNOK 200 undrawn credit facility		• Good progress on 70t & 150t crane contracts • High tender activity
• Order intake of MNOK 188, up 598% (27) • Solid order backlog of MNOK 888 at quarter-end (832)	Impact Technology Ventures	• Progressing commercial partnership discussions for SkyWalker as major component replacement tool
		• Jan Erik Kvingedal started as new CEO • Launched new closed cage fish farm design • Evaluating strategic review for parts of the business

Key financials | Per quarter

Order intake and backlog | Per quarter

1 Does not account for FX fluctuations in existing contracts

Syncrolift | Q1 update

Market &

• LoA for MUSD 5 basic engineering design contract from ASMAR Chile, plus MUSD 24 option for delivery of shiplift and ship transfer system • Five-year contract, worth MNOK 23, for maintenance of ship transfer system installed at Indian Navy's ship repair yard in Karwar, India • 8 MUSD contract for ship transfer systems to Dubai Maritime City validates our new transfer system • Maintains healthy EBITDA margin
• Sales
  -

- Financials

• Operations
  -

The leading provider of safe & efficient shipyard solutions

Syncrolift's market leadership

Syncrolift's
	market leadership
Syncrolift	has delivered 19 of the top 20 operational shiplifts	globally, Sorted by capacity

Contract wins in 2023/2024 emphasise Syncrolift's global reputation and competitiveness

ASMAR, Chile, represents significant potential

• Letter of Award: Basic engineering design of 5,000 t shiplift and ship transfer system
• Value: USD 5 million
• Delivery: By end-2024, Syncrolift Innovation Lab, Vestby
• of consortium with Syncrolift

• Option: Phase two equipment delivery of Syncrolift shiplift and ship fluid bed Firm: 2024 Option: 2025 onwards Photo: ASMAR

• transfer system
• Capacity: 5,000t, handling Navy and Commercial vessels
• Potential value: USD 24 million, subject to final investment decision by ASMAR not part of backlog
• Final investment decision: Expected by 2025

Growing Syncrolift's installed base in Dubai

Dubai Maritime City (DMC)

• Maritime cluster in UAE that covers all marine industry needs, e.g. ship repair, yacht manufacturing, marine suppliers engineering and technical expertise
• 249 hectares
• and Dubai's Dry-docks World

• Upgrade of two existing, third-party shiplifts, contract value MUSD 10
• system, undisclosed contract value
• Boosts DMC's total ship handling capacity from 800 to 2,000 per year

• transfer systems
• Contract value: MUSD 8

High visibility and tendering activity

Techano Oceanlift | Q1 update

Market & Sales • High tendering activity regenerated power back to the vessel the company's solutions

• Financials
  -

Operations Subsea

• Developing new series of offshore/subsea cranes to meet increased demand for subsea operations and construction - electrified – enabling it to deliver • Growth in revenues continues as project execution is progressing • Soft margins as market entry projects required to establish customers' trust in

Intelligent offshore lifting & load handling solutions

17

Revenue

Intellilift | Q1 update

Market &

• Sales

Data-driven performance for ocean-based industries

	Data-driven performance for ocean-based industries
• Revenue primarily driven by external drilling projects • Decent EBITDA margins with considerable upside potential	Ownership Employees Head office Est. 51% 17 Kr.sand 2018
	MNOK

Financials • Revenue primarily driven by external drilling projects

• Operations customer feedback (see next slide)
  -

InteliWell's performance gaining international recognition

"As part of our efforts to improve the consistency, efficiency, and repeatability of our operations, we continued to make progress with our automation initiatives in the first quarter. We achieved another milestone with our jointly owned InteliWell system as we performed simultaneous fully automated online drilling, tripping, and offline stand-building operations on the Transocean Norge in Norway.

And we are currently preparing for an upcoming deployment in the US Gulf of Mexico."

Jeremy D. Thigpen, CEO & Executive Director of Transocean Ltd, during Q1 2024 conference call

Nekkar-led consortium awarded MNOK 75 grant

• Consortium to develop a safe and efficient solution for main component replacement (MCR) on offshore wind turbines
• Status: Preparing for launch of project
• Ongoing: Finalize partner agreements and project financing plan
• Total project budget for all partners: MNOK 140, of which MNOK 75 financed through Green Platform Initiative grant

Nekkar financial highlights

Profit & Loss, Q1 2024

Nekkar financial highlights
Profit & Loss, Q1 2024				Revenue
MNOK	Q1 2024	Q1 2023	2023
Revenue	152	101	575	Profitability
Syncrolift	126	93	515
Intellilift	8	10	34
Techano Oceanlift	22	0	30
Other incl. eliminations	-4	-2	-5
EBITDA	30	23	109
EBIT	28	22	101
Net finance	-13	-5	8
Profit (loss) before tax	15	17	109
Income tax expense Profit (loss) for the period	5 10	4 13	26 83
EBITDA margin	20.0%	22.6%	18.9%	Sales
Net capitalized development costs1	3	6	19
Order intake	188	27	478
Order backlog	888	832	803	quarter
EPS (NOK)	0.10	0.11	0.78

Revenue

• Q1 revenue of MNOK 152, an increase of 50% compared to the same period last year

Profitability

- EBITDA of MNOK 30, a 33 % increase compared to

• Q1 last year • EBITDA margin at 20.0 % in Q1 2024, down from 22.6 % in Q1 2023 • Q4 Net financial items includes Nekkar's share of FiiZK's quarter loss, totaling MNOK 6. Net financial items is also driven by losses on FX contracts not qualifying for hedge accounting • Order intake of MNOK 188 in Q1 2024 compared to MNOK 27 in Q1 2023 • Order backlog of MNOK 888 at the end of the first

Sales

• quarter

Balance sheet

Balance sheet, Q1 2024

Balance sheet
			Assets
Balance sheet, Q1 2024
MNOK	31.03.24	31.12.23
ASSETS
Intangible assets and goodwill	69	67
Right of use assets	14	14
Tangible assets	9	9
Financial assets	45	49
Inventory	16	12
Accrued non invoiced production	113	144
Trade receivables	145	85
Other short-term receivables Derivative financial instruments	31 2	6 20
Bank deposits	197	194	Cash
Total assets	642	601
			end
LIABILITIES
Deferred tax liabilities	23	18
Lease liabilities	13	13
Trade payables	55	57
Prepayments from customers	54	39
Other current liabilities	64	46
Total equity	433	427
Total liabilities & equity
	642	601

Assets

• MNOK 40.5 million of Financial assets as of Q1 2023 are linked to the investment in FiiZK

• Working capital
• Working capital increase of MNOK 10 compared to year-end 2023 • Increase in accounts receivable as several projects has reached invoicing milestones expected to be converted to cash over the coming months • Robust cash position of MNOK 197 at quarter • Quarter was positively impacted by solid EBITDA, partly offset increased working capital and buy-back program • Available credit facility; MNOK 200 provides additional financial flexibility Net interest-bearing debt and equity • No interest-bearing debt • Solid equity of MNOK 433, representing a 67 % equity ratio

Cash

- end

-

Cash flow

Cash flow development, Q1 2024

- Cash flow • Operating cash flow for Q1 2024 is positive at MNOK 14, driven by a solid EBITDA in the period offset by increased working capital of MNOK 10 • Cash flow from investments is negative at MNOK 4 in Q1 2024 and is mainly related to CAPEX • Cash flow from financing is negative at MNOK 7 in the first quarter of 2024, driven by the buy back-back program of negative MNOK 9 • In total a net cash inflow of MNOK 3 in the first quarter of 2024. The company maintains a strong cash position of MNOK 197 at the end of the quarter

-

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

in Q3 2023

Buy-back program initiated

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, Q1 2024	MNOK
Net cash	197
Undrawn credit facility	200
Total	397
Expecting continued solid operational going forward	cash flow
Share buy-backs, Q3/23 – Q1/24	31.03.24
Number of shares purchased	2,271,381
Average price (NOK)	8.88
Total transaction value	20,168,665
	24

31.03.24
2,271,381
8.88
20,168,665

Summary Q1 2024 & outlook

Summary Outlook

Summary	Outlook
Strong revenue growth of 50% versus Q1 2023		 Backlog provides good visibility for 2024 and 2025  High tendering activity
Healthy order backlog of NOK 888 million, order intake of NOK 188 million in quarter	xx	 Successful implementation of InteliWell's breakthrough award likely to open up further rig market opportunities
		 Execution of backlog for two offshore cranes  High tendering activity
Continued strong cash position and balance sheet		 Conclude partnership model for O&M within offshore wind for SkyWalker
Solid project execution for Syncrolift and Techano Oceanlift, strong operational results for InteliWell JV		 Conclude strategic review  Continue sales and marketing of solutions
		Next update: Q2/H1 2024 financial results, 22 August 2024

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 first quarter of 2024 for Nekkar ASA. The consolidated financial statements for Q1 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 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.

nekkar.com