Nordic Unmanned ASA

Earnings Release • Nov 17, 2022

Nordic Unmanned reports record revenue and flight hours

Nordic Unmanned reports record revenue and flight hours

17.11.2022 07:00:01 CET | Nordic Unmanned | Half yearly financial reports and

audit reports / limited reviews

Nordic Unmanned today announced record-high revenue and number of flight hours

in the third quarter of 2022, demonstrating the potential of the company's

established growth platform.

Revenues in the third quarter amounted to EUR 5.5 million compared to EUR 2.7

million, an increase of 101 percent from the same quarter last year. EBITDA was

negative EUR 1.2 million, compared to negative EUR 0.8 million in the third

quarter of last year on an IFRS basis. Compared to the preceding quarter, EBITDA

improved by EUR 1.8 million.

"Nordic Unmanned entered a new phase in the third quarter. Over the previous

quarters, we have invested heavily in a platform for further growth. Our

performance in the third quarter illustrates that we are now able to leverage

this platform. We grew the topline rapidly without increasing the size of the

organisation, and we took decisive action on cost control, leading us

substantially closer to breaking even," says Knut Roar Wiig, CEO of Nordic

Unmanned.

At the end of the third quarter, the total contract backlog was approximately

EUR 65 million. EUR 157 million of opportunities in the commercial pipeline is

currently awaiting tender decision, of this EUR 120 million is expected to reach

a decision in the next two months. A commercial highlight for the quarter was

the logistics operations performed by the Staaker Logistics Drone between

installations in the North Sea. The company also performed a number of advanced

operations, including four simultaneous BVLOS (Beyond Visual Line of Sight)

deployments.

A North American office was opened in Baltimore during the quarter to serve

American and Canadian customers, while a joint venture was formed with an

operational base in Rio de Janeiro to serve Latin American clients.

Shortly after the end of the quarter, Nordic Unmanned received a conditional

letter of award from the European Maritime Safety Agency (EMSA) regarding drone

services for multipurpose maritime surveillance with medium range and endurance.

The official value of the framework contract is up to EUR 20.5 million over a

period of up to four years.

Record number of flight hours and customer operations

The number of flight hours in the quarter was 1450, an increase of 179 percent

compared to the same quarter last year and an increase of 78 percent from the

preceding quarter. During the quarter, substantial support has been provided to

our customers, with air pollution measured on 471 vessels and participation in

90+ search and rescue operations. So far in 2022, Nordic Unmanned has

participated in search and rescue activities involving more than 3000 people.

Outlook

Over the first nine months of 2022, Nordic Unmanned exceeded full-year 2021

revenue by 40 percent. Profitability is improving and is expected to continue to

improve through cost control and as operations keep scaling.

The current contract backlog is expected to contribute revenues of EUR 25.7

million in 2023. A significant portion of the backlog is coming from framework

agreements. With the current high market activity and demand, additional awards

are expected, and these would further increase 2023 revenues accordingly.

Based on the current outlook, Nordic Unmanned expects to be profitable and

cash-positive from operations in 2023.

The third quarter report and presentation are enclosed. There will be a

livestreamed presentation as well as a Q&A session at 10:00 CET. Register here

to view it: https://register.gotowebinar.com/register/5564828885478288143

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

CONTACTS

* Knut Roar Wiig, CEO, +47 92 66 66 59, krw@nordicunmanned.com

* Trond Østerhus, CFO, +47 95 99 08 79, to@nordicunmanned.com

ABOUT NORDIC UNMANNED

Nordic Unmanned is a global leader of high-end products and services related to

drones and data capture. Through worldwide operational experience and

industry-leading expertise, Nordic Unmanned supports large governmental and

industrial clients in the adaption of unmanned systems and services.

Founded in 2014, the Group has offices in Sandnes, Molde, Odense (DK), Cranfield

(UK), Hasselt (BE), Arnsberg (GER) and Baltimore (US) and has quickly become one

of the leading providers of unmanned systems and services, with operations

across Europe. Nordic Unmanned has one of the world's most comprehensive permits

to fly beyond visual line of sight (BVLOS), through the EASA approved Light UAS

operator Certificate (LUC).

The Group is OEM for the drone products Staaker, AirRobot and DroneMatrix, and

is also world leading in the collection of vessel emission data. It is ISO

9001-2015 and AS9100 certified for the operation, maintenance, sale, design,

development, and production of unmanned systems and sensor technology.

For more information visit - https://nordicunmanned.com/

ATTACHMENTS

Nordic Unmanned Q3 2022 Report.pdf -

https://kommunikasjon.ntb.no/ir-files/17847587/1875/2567/Nordic%20Unmanned%20Q3%

202022%20Report.pdf

Nordic Unmanned Q3 2022 Presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847587/1875/2568/Nordic%20Unmanned%20Q3%

202022%20Presentation.pdf