Nordic Unmanned ASA

Investor Presentation • Feb 19, 2021

European leader of unmanned systems and services

LN-310-NB

Q4 2020 Presentation

19.02.2021

HIGHLIGHTS FROM THE QUARTER

ANALIS PRESERVATION

N

Q4 2020: THE STRONG GROWTH CONTINUES

• Revenue growth of 121% compared to Q4 2019
• Green Solutions contributed 71 % of the revenue for $\bullet$ the Q4 and 63 % for FY 2020
• 75 % of revenue from Drone-as-a-Service(DaaS) and $\bullet$ 25% from system integration activities
• High activity under challenging Covid-19 pandemic in 8 $\bullet$ countries within Europe
• Adverse weather conditions normally lead to lower $\bullet$ flying activity in winter months

سيد

$\bullet$

Q4 2020: EBITDA REFLECTS ECONOMIES OF SCALE

• EBITDA* growth of 144%
• EBITDA* margin of 20% in the quarter $\bullet$
• Margin steady increase from 16% in Q3 FY 2020 $\bullet$
• Covid-19 one-off cost of NOK 1,7 million $\bullet$

FY 2020: BREAKTHROUGH YEAR

• Revenue growth of 112% year over year to NOK 66,1 million
• First year with positive EBITDA* NOK 5,6 million
• Net profit* for FY 2020 NOK 1,8 million adjusted for one-off 's related to Covid-19 (NOK 2,5 million).
• Timing of some deliveries to customers effected due to Covid-19
• Increased from 27 employees in Q3 to 50 employees as of February 2021

* adjusted for one-off Covid-19 cost

HIGH OPERATIONAL ACTIVITY IN Q4

Operated at 2 simultaneous sites with the CAMCOPTER® S-100;

• Denmark (Danish Maritime Authority) $\bullet$
• France (Ministere de la Mer) $\bullet$

Operated at 3 simultaneous sites with the Indago 3;

• Fishery inspection deployed from vessel in NAFO* and $\bullet$ NEAFC* regulated area
• Border control Romania (Romanian Border Police) $\bullet$
• Harbor authorities in Port of Antwerp $\bullet$

Pas-de-Calais

Sjellands Odde

Romania

Port of Antwerp

NAFO*(Northwest Atlantic Fisheries Organization) NEAFC* (North East Atlantic Fisheries Commission)

OPERATIONAL FOOTPRINT Q4 2020

326 flights

An increase of 100 % compared to Q4 2019.

Environmental monitoring within Europe

Participated in four search and rescue operations

More than 14 vessels were identified as potential violators of the sulphur regulations, representing a disappointing 21% of the inspected vessels

Image taken from a night operation in Denmark in November

The Staaker BG200 with Green LiDAR

تسيست

FLIGHT HOURS INCREASING FY 2020

221% increased flight hours

323 flight hours for the quarter and 781 for the full year, an increase of more than 221% from FY 2019.

Q3 and Q4 yielded more flight hours each quarter than the full FY 2019

NOK 69 175 revenue per flight hour for FY 2020 NOK 59 359 revenue per flight hour in Q4

Q4 2020: COMPANY EVENTS

Norwegian Armed Forces

Signed contract with Norwegian Defense Materiel Agency

Railway data collection robot

R&D cooperation with Bane NOR to develop the Staaker BG-300 drone for railway digitalization applications

First hydrogen flight

First hydrogen powered drone flight in Scandinavia

Acquired CAMCOPTER® S-100 RPAS*

Increased the fleet with two Camcopter S-100

Listed on Euronext Growth

Listed as first drone operator in Europe. Raised NOK 99 million through IPO

RPAS* Remotely Piloted Aircraft System

SOLID FINANCIAL FOUNDATION FOR GROWTH

• Raised equity of NOK 99 million through IPO on $\bullet$ Euronext Growth at NOK 14,70 per share
• Refinanced Joan of NOK 20 million and added $\bullet$ NOK 20 million credit line
• Next CAMCOPTER^® S-100 to be delivered in Q1 $\bullet$ 2021
• Cash positive of NOK 9,6 million from operations $\bullet$ in Q4 FY 2020
• Cash position at 31st of December NOK 53 mill $\bullet$ and NOK 20 mill unused credit line

Q4 2020: KEY CONTRACTS, SOLID BACKLOG

• Total contract backlog of NOK 315 million, gross increase of NOK 41 million (contract use of NOK 21 million)
• Added new contract backlog as,
• Framework contract for Norwegian Ministry of $\bullet$ Defense
• Framework contract for Dutch Ministry of $\bullet$ Defense
• R&D cooperation with Bane NOR $\bullet$
• Short term extension of Bane NOR service $\bullet$ contract
• Staaker products included in Blue-chip OEM $\bullet$ offering
• Framework contract with global mobile $\bullet$ network provider

IRKET & OUTLOOK

NORDIC

Highlights

$\mathbf{1}$

Market & Outlook $2¹$

Q4 Financials $\mathbf{3}$

$U$

THE REAL PROPERTY

UPLIFT IN CRM PIPELINE

Identified sales pipeline of NOK 7,1 billion,

• Increase in historical win rate from 30% to 32%
• CRM pipeline do not include projects with ongoing negotiations or un-announced wins

$-$

Historical win rate of 32%

OUTLOOK AND KEY GROWTH DRIVERS

More than doubled our revenue from 2019 to 2020, and expect to significantly increase this growth rate in 2021

EBITDA margin 2021 expected to be in line with adjusted EBITDA* margin Q4 2020

Medium term growth

We are confirming our medium-term ambition of

becoming a billion NOK company

Targeting 90 employees by the end of 2021

Several M&A opportunities targeted in Europe

Increased fleet value

Fleet value increased to NOK 56 million at the end of 2020 and is expected to triple in 2021, due to the acquisition of additional CAMCOPTER® S-100 systems

* adjusted EBITDA is EBITDA adjusted for one-off Covid-19 cost

CONTRACTUAL TRIGGERS - Q1 AND Q2 FY 2021 - MORE THAN NOK 300 MILLION

Schiebel Aircraft GmbH; VTOL RPAS for emissions monitoring with long endurance (CAMCOPTER® S-100)

OP-27

European Maritime Safety Agency: VTOL RPAS Vessel based operations for maritime surveillance - Lot 2 with partner (CAMCOPTER® S-100)

Environmental Contract

Major European Maritime Public Organization: System integration contract of unmanned systems.

System Deliveries

European MOD and Police customers: More than 10 countries (Indago and Staaker products and services)

Map The Gap Phase 2

Defense Science and Technology Laboratory / UK MOD: Competition (Staaker BG200)

$-$

Q4 REVENUE PER COUNTRY

• Q4 2020 revenue stream more diverse, with $\bullet$ France the biggest contributor at 30%, with Denmark next 15% and Norway 11%
• EMSA contracts makes for diverse revenue $\bullet$ distribution

NORDIC

BUSINESS SEGMENT HIGHLIGHTS Q4

Green Solutions	Monitored 136 vessels in Q4
	Took part in 4 Search and Rescue (SAR) operations	Revenue split
	Took part in 2 oil spill exercises Drone stand-by on 8 oil spill response vessels	$3\%$ $3\%$
	Indago platform added to Dutch MOD acquistion catalogue and first order received	23 %
Defense & Security	Contract entered into with Norway MOD for delivery and life cycle support of the Indago platform and first order received
$\overline{a}$	Started contract with global mobile network provider for digitalisation of 4G/5G sites in Norway.
Digitalization	Live bridge inspections for Bane NOR Successfully conducted green LiDAR survey	71%
	Frame contract with Bane NOR short term extended.	Logistic & Robotization Digitalization
Logistics & Robotization	Separate "Railway Robot" development contract with Bane NOR signed	Defense & Security Green Solutions
	Secured feasibility studies with Shell/Sonardyne

CAMCOPTER S-100 RPAS ADDED TO I FET

• The CAMCOPTER^® S-100 is a world leading, proven capability for military and civilian applications
• Mini helicopter with a MTOW (max take off weight) of 200kg and payload capacity of 50kg
• Needs no prepared area or supporting launch or recovery equipment
• It operates day and night, with a range of 200km, both over land and sea with a flight time of up to 10 hours

Yearly expected revenue per system of NOK 20 to 25 million at 50% utilization

INNOVATIONS - STAAKER POWERED BY HYDROGEN

• Successful test flight in December $\bullet$
• Project initiated in 2018 and carried out as a part of a PhD program
• Hydrogen fuel cells more than doubles the endurance of a normal flight
• No emissions, lower noise and lower cost compared $\bullet$ to other high-endurance options

ISCLAIMER

• This document contains certain forward-looking information and statements that are based on the current, estimates and projections of Nordic Unmanned AS (the "Company") or assumptions based on information currently available to the Company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give assurance to the correctness of such information and statements. These forward-looking information and statements can generally be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use terminology such as "expects", "believes", "estimates" or similar expressions.
• By their nature, forward-looking information and statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements that may be expressed or implied by the forward-looking information and statements in this document. Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove to be incorrect, the Company's actual financial condition or results of operations could differ materially from that or those described herein as expected, believed or estimated.
• Given these uncertainties, prospective investors are cautioned not to place undue reliance on any of these forward-looking statements.
• The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Nordic Unmanned AS.

INCOME STATEMENT

All figures in NOK	Q4 2020	Q1 - Q3 2020	2020	Q4 2019	2019
Operating revenue	25 152 126	40 984 769	66 136 895	11 402 724	31 123 282
Cost of goods sold	12 699 032	17 919 288	30 618 320	2 775 422	12 740 879
Personell expenses	4 842 828	15 171 142	20 013 970	6 017 935	16 599 657
Other operating expenses	4 286 546	8 129 711	12 416 257	553 420	2 2 2 6 9 0 5
EBITDA	3 323 720 -	235 372	3 088 348	$2055947$ -	444 159
Adjusted for one-off Covid 19 cost	1700000	800 000	2 500 000
Adjusted EBITDA*	5 023 720	564 628	5 588 348	2055947	444 159
Depreciation and amortisation expenses	800 828	2 2 6 2 7 3 3	3 063 561	383 820	1 535 279
EBIT	2 5 2 2 8 9 2 -	2 498 105	24 787	1672127	1979438
Net financial items	561 298 - ٠	462 119	$1023417$ -	265 603	1 062 413
Income (loss) before tax	1961594 -	2960224	998 630	1 406 524 -	3 041 851
Income tax	372 625	639 969 $\overline{\phantom{a}}$	267 344	945 682	3782728
Net income (loss)	1588969 -	2 3 2 0 2 5 5	731 286	2 3 5 2 2 0 6	740 877

*EBITDA adjusted for one-off Covid-19 cost

$\frac{1}{2}$

BALANCE SHEET

All figures in NOK	2020	2019
Assets
Intangible assets	20 523 115	14 050 344
Aircraft and spareparts	40 971 232	4 313 790
Fixtures and fittings	9835664	3 0 2 0 4 8 5
Financial assets
	12 458 978	12 481 479
Total fixed assets	83 788 989	33 866 098
Inventory	3 185 840	1499943
Accounts receivables	8 170 305	1792911
Other current receivables	13 259 901	6 693 660
Cash and cash equivalents	53 225 002	805 331
Total current assets	77 841 048	10 791 845
Total assets	161 630 037	44 657 943
Equity and liabilities
Equity	112 568 009	14 450 019
Liabilities to financial institutions	25 396 776	6 895 855
Total long term liabilities	25 396 776	6895855
Liabilities to financial institutions		11 835 084
Trade creditors	14 685 994	6828375
Public duties payable	2 2 7 1 1 6 4	1 194 059
Other current debt	6708094	3 454 551
Total short term liabilities	23 665 252	23 312 069
Total liabilities	49 062 028	30 207 924
Total equity and liabilities	161 630 037	44 657 943

$\overline{\phantom{m}}$

CASH FLOW STATEMENT

All figures in NOK	Q4 2020	Q1 - Q3 2020	2020
Cash flow from operations
Income (loss) before tax	1961594 -	2 960 224 -	998 630
Taxes paid in the period		$\overline{\phantom{a}}$
Depreciation and amortisation expenses	800 828	2 2 6 2 7 3 3	3 063 561
Changes in inventories	881 121 -	2 5 6 7 0 18 -	1685897
Changes in accounts receivables	$602048 -$	5 186 531 -	4 5 8 4 4 8 3
Changes in accounts payable	4710962	3 146 657	7857619
Other operating cash flow	679 080 -	3 016 890 -	2 3 3 7 8 1 0
Net cash from operations	9635633 -	8 3 2 1 2 7 3	1 3 1 4 3 6 0
Cash flow from investments
Purchase of fixed assets	41 666 114 -	4 3 3 6 7 8 4 -	46 002 898
Capitalized R & D	1671211 -	2 809 614 -	4 4 8 0 8 2 5
Other investing activities - net	267 151		267 151
Net cash from investments	43 070 174 - ٠	7 146 398 -	50 216 572
Cash flow from financing activities
Net disbursments overdraft facility	11 216 297 -	2 313 070 -	13 529 367
Proceeds from new debt (short / long term)	6968068	16 303 708	23 271 776
Repayment of debt (short / long term)	836 187 -	5 607 042 -	4770855
Proceeds from equity issue	88 908 367	7 441 964	96 350 331
Other finance cash flow - net	211 219	536 468
Net cash from financing activities	85 707 544	16 362 028	101 321 885
Net cash for the period	52 273 002	894 357	52 419 672
Cash and cash equivalents at the beginning of the period	952 000	57 643	805 330
Cash and cash equivalents at the end of the period	53 225 002	952 000	53 225 002

DEFINITIONS

Revenue per flight hours	Total revenue (excluding revenue for the Defense & Security business area) for the period divided by total flight hours (excluding flight hours for the Defense & Security area) for the period.
EBITDA	Profit/(loss) for the period before net financial items, income tax expense, depreciation and amortization
Adjusted EBITDA*	(*) Adjusted EBITDA is EBITDA adjusted for one-off Covid-19 associated cost. Covid-19 associated cost includes additional medical certificates and tests, additional travel insurance, quarantine days for crew before and after operation, additional hotel and logistics costs
Contract backlog	Contract backlog includes the remaining estimated value of signed contracts.

$\overline{\phantom{a}}$

MARKET OUTLOOK

• According to Drone Industry Insights, the European $\bullet$ drone market accounts for USD ~5bn in 2020
• The market is expected to grow at $\sim$ 14% annually, $\bullet$ to USD ~10bn in 2025
• Most of the growth will come from the commercial $\bullet$ segment, an immature market, where experienced operators will have a significant first-mover advantage
• Covid-19 has accelerated the utilization of drones $\bullet$ in the commercial sector in Europe
• North America and Asia has similar growth rates as $\bullet$ Europe

نصت

STRONG POSITIONED IN A GROWING MARKET

• Unmanned Aviation represents an alternative to legacy solutions which reduces time, costs and CO2 emissions, while increasing safety of operations
• Drones also enhances data analytics, which facilitates better decision making
• Drones have been utilized by the military for $\bullet$ several years, while commercial applications are relatively new. Therefore, clients in the commercial sector are relatively uneducated, but the usage is expected to accelerate significantly over the coming years
• Largest revenue segment in the drone industry is expected to be services, where Nordic Unmanned is operating

¹Goldman Sachs ²Boston Consulting Group ³Dronell

LARGEST ITEMS IN THE CURRENT PIPELINE

Identified NOK 7.1bn in potential awards in the next four years

Client Type	Business Area	Size (mNOK)	Win% (assumed)	Contract Start	Contract End
MOD in Europe	Defense & Security	1800	5%	2022	2032
Public security agency	Defense & Security	500	5%	2024	2031
Public security agency	Green Solutions	500	25%	2024	2028
Public security agency	Defense & Security	400	5%	2024	2028
Energy company	Logistics & Robotization	400	20%	2022	2028
MOD in Europe	Defense & Security	352	5%	2022	2025
MOD in Europe	Defense & Security	300	5%	2022	2029
MOD in Europe	Defense & Security	300	10%	2023	2030
Public environmental agency	Green Solutions	300	20%	2022	2026