Nordic Unmanned ASA

Earnings Release • Aug 31, 2022

Nordic Unmanned reports record revenue and updated operational model as scale-up progresses

Nordic Unmanned reports record revenue and updated operational model as scale-up progresses

31.8.2022 07:00:01 CEST | Nordic Unmanned | Half yearly financial reports and

audit reports / limited reviews

Nordic Unmanned today announced second quarter 2022 results demonstrating record

high revenue and outlined an updated operational model. The operational activity

has also increased in the third quarter, and year-to-date revenue has exceeded

full-year 2021 as of mid-august 2022.

Updated operational model

Nordic Unmanned is growing rapidly in a fast-moving industry. To better reflect

the nature of the evolving businesses and the way they are organised, the Group

and the financial reporting will be based on the following business units:

? Drone as a Service: Nordun

? Data as a Service: NUMar

? Products and Development: NUTech

? Distribution: NUGlobal

The company's industry focus will be sharpened towards the maritime, security

and defense, offshore energy and rail market segments, prioritising markets with

significant near-term opportunities.

"Nordic Unmanned is now one of the leading pure-play listed drone companies

globally, and we have built a solid platform for further growth in a rapidly

expanding market. Several temporary factors impacted revenue growth and

profitability in the second quarter, but we have already passed last year's

revenue level," says Knut Roar Wiig, CEO of Nordic Unmanned.

Ukrainian Armed Forces trained

Nordic Unmanned has sold surveillance drones to a donating European country,

with training of drone operators from the Ukrainian Armed Forces as part of the

sale.

"The sale reflects our earlier communicated expectations of increased demand in

the defence market and Nordic Unmanned's capability to deliver on the demand,"

says Wiig.

57 percent revenue growth

Revenues in the second quarter amounted to EUR 4.8 million, an increase of 57

percent from the second quarter of last year. The gross profit was EUR 4.1

million, compared to EUR 2.7 million in the second quarter last year, and EBITDA

was negative EUR 3 million, compared to negative EUR 0.8 million in the second

quarter of last year on an IFRS basis.

At the end of the second quarter, the total contract backlog was EUR 67 million,

an increase of 13 percent compared to last. The commercial highlight was

AirRobot's award from the German Armed Forces "Bundeswehr", one of the largest

military drone contracts in its category ever awarded in Europe.

The company has a liquidity position of EUR 5 million, including cash and

available overdraft and credit lines.

Record high flights and flight hours

The number of flight hours in the quarter was 814, an increase of 56 percent

compared to the same quarter last year.

Nordic Unmanned announced the acquisition of a majority of DroneMatrix of

Belgium, offering a fully autonomous AI-powered Drone-In-A-Box solution.

Outlook

Revenue growth in the third quarter is expected to be higher than in the second

quarter. The previously communicated revenue guidance for the year of around 200

percent growth is still within reach but will require substantial awards within

the Security and Defense sector in the second half of 2022. However, the

previously communicated EBITDA margin of 10-20 percent will not be achieved.

The uplisting to Oslo Stock Exchange will most likely be postponed into 2023, as

the company sees the need to fully implement the legal entity and operational

model before the uplisting.

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

livestreamed presentation as well as a Q&A session at 10:00 CET from Rogaland

Investor Forum. https://register.gotowebinar.com/register/8777185145382022155

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 Q2 2022 Presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847587/1714/2302/Nordic%20Unmanned%20Q2%

202022%20Presentation.pdf

Nordic Unmanned Q2 2022 Report.pdf -

https://kommunikasjon.ntb.no/ir-files/17847587/1714/2303/Nordic%20Unmanned%20Q2%

202022%20Report.pdf