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Nordic Unmanned ASA

Quarterly Report Feb 23, 2023

3682_rns_2023-02-23_12412c06-0f6b-4d14-b4c5-97fa8aa27f1d.pdf

Quarterly Report

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Q4 REPORT

FEB 2023

Content

Q4
at a glance
3
Letter from the CEO
4
Group financial summary 7
Operational review 10
Outlook 18
Interim Unaudited Financial statements
23
Notes 28

About Nordic Unmanned

Nordic Unmanned is a leading provider of high-end drone and data capture products and flight services. Its NUTech business unit is an Original Equipment Manufacturer (OEM) for the drone and sensor product lines AirRobot, DroneMatrix and Staaker, serving primarily defense, security and productivity improvement markets. The Nordun business unit holds industry-leading expertise as operator of rotary and fixed-wing drone systems, providing pollution monitoring, fishery control, surveillance and logistics services. Clients include coast guards, intelligence services and government agencies.

Nordic Unmanned has one of the world's most comprehensive permits to fly beyond visual line of sight (BVLOS), through its EASA-approved Light UAS operator Certificate (LUC). The company is ISO 9001-2015 and AS9100 certified for the operation, maintenance, sale, design, development, and production of unmanned systems and sensor technology.

Founded in Norway in 2014, Nordic Unmanned has offices in Sandnes (NO), Molde (NO), Odense (DK), Cranfield (UK), Hasselt (BE), Arnsberg (GER) and Baltimore (US).

Q4 at a glance

The Group

EUR million Q4 2022 Q4 2021 Change FY
2022
FY
2021
Change
Revenue 3.7 2.5 48% 16.5 9.2 79%
EBITDA
(adj)*
-2.4 -2.8 -8.6 -5.3
EBITDA margin -65% -113% -52% -57%

*EBITDA adjusted for EUR 0.7 million in inventory obsoleteness and one-off adjustments on projects

  • EUR 3.7 million revenue in the quarter and EUR 16.5 million full year 2022, up 48% and 79% compared to 2021
  • Adjusted EBITDA loss of EUR 2.4 million due to low season for flight services and ramp-up of manufacturing activities in NUTech to activate revenues in first quarters of 2023Signed 4-year multipurpose maritime surveillance contract with EMSA, with a total value of EUR 20.5 million
  • Inventory obsoleteness, one off cost adjustments of development projects and write down related to the Staaker product line of EUR 3.0 million Awarded framework contract and received first order from Lockheed Martin UK Ltd for AirRobot Heimdal sensors and software, as sub-supplier to the UK Ministry of Defence TIQUILA drone program
  • Raised gross proceeds of NOK 70 million through a private placement, with subsequent offering of NOK 9.6 million completed February 2023, for investments in contracts, working capital needs and reduction of short-term debt

Quarterly Revenue and EBITDA margin

Letter from the CEO

We finished the fourth quarter with new flagship agreements with EMSA and Lockheed Martin UK, which will catalyse growth in the NUTech and Nordun business units in the coming years. Revenues in the quarter added to the strong, continued growth trajectory, with rolling 12 months revenues at record high. In 2023, our overriding priority is to convert high value customer agreements to cash flow, scale our manufacturing activities and streamline operations through cost control and pooling of resources in two business units.

Winter, and specifically the fourth quarter, is low season for maritime flight services in Europe, and our other activities were ramping up production for delivery and invoicing in 2023. However, we were still able to increase revenues by 48% compared to the same quarter last year. We also secured high value, long-term contracts in the quarter, setting the stage for continued growth as well as profitability.

Firstly, completing testing, we received the final approval required for the signature of the OP5 maritime surveillance contract we were awarded by the European Maritime Safety Agency (EMSA), a framework contract for the period 2023-2027. The contract value is up to EUR 20.5 million, the largest contract in the company's history, and we expect utilisation to ramp up towards the end of 2023.

Secondly, we entered into a ten-year framework contract with Lockheed Martin UK for AirRobot's Heimdal sensors and software, which will be used in the UK Ministry of Defence's TIQUILA drone program. We received the first EUR 1.5 million call off order in December, and where total orders could exceed EUR 5 million in 2023.

Responding to customers and focusing our strategic plans, we are simplifying our financial and organisational structure by consolidating business unit NUMar into Nordun and business unit NUGlobal into NUTech. The purpose is to create a clear distinction between our flight services and our technology, enabling two distinct business models with separate customers, suppliers and partners to thrive and grow at speed. Into 2023, the NUTech business unit is fully

focused on the successful production and deliveries of lightweight drone systems to the German army (Bundeswehr) under the MIKADO II contract, as well as to Lockheed Martin UK under the TIQUILA contract. Additionally, the business unit has landed contracts for drone-in-a-box solutions to prestigious Belgian clients.

The Nordun business unit continues to focus on the delivery of the sophisticated missions contracted by EMSA. Additionally, Nordun will oversee Ecoxy's emissions measurement and verification business and support the NUAer JVs drone-based emission monitoring services.

These new framework agreements strengthen these two business units, and result in significantly increased backlog visibility. Our total contract backlog is now totaling EUR 89 million, confirming Nordic Unmanned's leading position in the European unmanned aerospace community.

Financially, 2022 was a challenging year with poor profitability and productivity, with lower utilization of our fleet on certain of our flight contracts in addition to lower realised sales than expected. We raised a gross total of NOK 166 million from investors and employees in challenging market conditions, to invest in our fleet newbuild program, centralised remote operations, manufacturing, M&A transactions and to reduce our debt position. I am thankful for the investments made in our business, as well as the support we have received from our financing partners, in our continued efforts to grow, scale and ensure a profitable Nordic Unmanned - fit to execute on our contract backlog and capture a wealth of upcoming opportunities.

In 2023, we are fully committed to achieving profitability and shareholder value creation. We are simplifying our structure, and cost initiatives alone are decreasing run -rate salary costs by 20% from Q4 to Q1. We have also been able to secure repricing of major contracts, partly mitigating inflationary and other effects and securing improved margins and will continue constructive dialog with our customers to ensure we can deliver value creating services for them also in a new macro environment. We expect the delivery schedule for NUTech OEM products to balance the seasonality of Nordun, and thereby cater for lower group sales seasonality and higher profitability throughout the year. To sharpen our strategic focus and enhance return on capital employed, we are exploring options for divesting certain non -core assets.

The planned H1 2023 uplisting will be postponed until the company has demonstrated the targeted financial performance s in each of its business units in line with revenue and profitability expectations as communicated to the market, and the capital structure supports the planned continued ambitious growth.

In short: We are proud to be at the forefront of use case creation for unmanned aerial vehicles and continue to experience strong demand in the market, both for our products and our services. We are fully committed to being profitable and cash positive from operations and look forward to updating investors as we move further into 2023.

Nordun Revenue of EUR 1.5 million EBITDA negative EUR 1.0 million

  • 437 flight hours in Q4, an increase of 43% from Q4 2021
  • 2922 total flight hours in 2022, an increase of 99% compared to 2021
  • Covered more than 260 000 km of flight distance with the Aerosonde and Camcopter in 2022
  • Signed OP/5 contract late December with EMSA
  • Camcopter operations in Spain and France
  • Aerosonde operation in Estonia
  • Full quarter of fishery vessel inspection
  • Still too low asset utilisation in the last two months of the quarter

NUTech

Revenue of EUR 1.5 million EBITDA EUR 0.3 million

AirRobot

  • LMUK's award for UK MoD TIQUILA resulted in significant backlog for 2023 for sensors for the Lockheed Martin Indago 4
  • MIKADO II program progresses as planned; first delivery expected in Q2
  • First AR100-H sold to police forces

DroneMatrix

  • Completed the installation of 4 of 6 systems for Port of Antwerp
  • Completed startup of external manufacturing of drone-in-a-box systems reducing costs
  • Several smaller contracts won during the quarter

40.5% of total revenue

NUMar (a part of Nordun) Revenue of EUR 0.4 million

EBITDA negative EUR 0.2 million

  • NUAer (JV 60% owned) performed operations for Port of Turku and major oil and gas company
  • Ecoxy maintained position as a leading provider of accredited NOx measurements and verification of GHG emissions
  • 22 emission measurements completed in Q4.
  • Full year turnover of NOK 18 million, an increase of 34%. EBITDA margin of 28%

11% of total revenue

40.5% of total revenue

NUGlobal (a part of NUTech) Revenue of EUR 0.3 million EBITDA negative EUR 0.3 million

  • Revenue related to sale of Lockheed Martin Indago, frame agreement with Swedish police, and various MRO activities in Norway
  • Nordic Unmanned UK Ltd. instrumental in securing the TIQUILA contract with Lockheed Martin UK
  • High activity and commercial traction in newly opened US entity related to drone-in-abox and AirRobot AR100-H

8% of total revenue

Group financial summary

The fourth quarter confirms a trend increasing revenue growth from sale of drone technology. The business unit NUTech has become a larger revenue contributor than resale and system integration revenue from third party technology partners. Large industrial contracts awarded to NUTech, such as MIKADO II and TIQUILA, also generates stability in revenue, and helps balance seasonality in the Nordun service revenue. Service revenue is still driven by European operations and remains seasonable with 2nd and 3rd quarter being the period with the highest utilisation of our fleet. The trend is expected to continue and in 2023 we expect to see a balanced revenue contribution from services and products.

In Q4, the Group revenue ended at EUR 3.7 million, representing a 48% increase from Q4 2021. For the year 2022, revenue ended at EUR 16.5 million, representing an increase of 79% compared to 2021.

NUTech ended up with the strongest growth, with a revenue of EUR 1.5 million, representing a growth of 89% from the same quarter last year. EBITDA ended at 0.3 million before impairment and inventory obsoleteness of EUR 2.7 million.

Nordun revenue ended at EUR 1.5 million, an increase of 20% compared to Q4 2021. EBITDA was negative EUR 1.0 million compared to a loss of EUR 1.2 million in Q4 last year.

NUMar reported revenue of EUR 0.4 million, the same as in Q4 2021. EBITDA ended at negative EUR 0.2 million.

NUGlobal sales in the quarter were EUR 0.3 million, an increase of 183% compared to Q4 2021. Adjusted EBITDA was negative EUR 0.3 million and includes a EUR 0.2 million contract asset write-down.

Adjusted EBITDA for the Group before write downs and impairments was negative EUR 2.4 million, compared to negative EUR 2.8 million for the same period last year. Full year EBITDA ended at a loss of EUR 8.6 million compared to a loss of EUR 5.3 million in 2021.

Write downs and obsoleteness

In Q4, the company closed the Staaker development office in Oslo as part of the earlier announced cost saving plan, and with the increasing focus on the existing product lines in AirRobot and DroneMatrix. For prudential reasons, the board has decided to make an aggregate EUR 2.3 million write down of its longterm assets related to its Staaker product line. Another 0.4 million of inventory obsoleteness effects the results of Staaker and AirRobot, in addition to 0.2 million of cost related to contract assets in NUGlobal. Total negative effect for the quarter is EUR 3.0 million.

Depreciation and amortization for the quarter amounted to EUR 1.7 million, of which EUR 0.7 million is related to fixed assets (drones), EUR 1.0 million is related to intangible assets, including concessions, patents and licenses, and the balance associated with the right of use (lease obligations).

Unallocated overhead expenses ended at EUR 1.3 million for the quarter. The costsaving program that was initiated in Q3 will not have full effect before Q1 2023. The number of FTE's in the Norwegian entity were reduced with 12 (10%) in Q4 and will be reduced with another 19 FTE's in Q1 (19%). This will represent EUR 0.5 million in reduced costs related to discontinued activity and personnel cost.

The pre-tax loss amounted to EUR 7.2 million for the quarter and EUR 18.1 million for the year.

As a result of being a Norwegian based growth company with increasing activity outside Norway, the company have decided to derecognize a deferred tax asset in the balance sheet related to Norwegian taxes of EUR 5.0 million. The deferred tax will be carried forward off balance sheet until the company is in a tax position.

Liquidity

Nordic Unmanned had cash and committed credit lines of EUR 6.7 million as of year-end, of which EUR 2.9 was related to available credit lines in subsidiaries.

Nordic Unmanned will adjust its drone fleet to meet its contractual obligations and structure of the new contract backlog. Fleet composition and adjustments will depend on use case opportunities but may also lead to a reduction of the rotary wing fleet. The remaining capital expenditure related to our fixed-wing fleet to honor our obligations under both the OP46 and the OP5 contracts is lower than the expected capital raised from divestment of rotary wing assets. Hence a fleet adjustment is expected to represent a source of capital and a reduction of longterm debt for Nordic Unmanned. The

company sees significant synergies in terms of fleet utilization, training, crewing, spare parts planning, and backup from utilizing the same Aerosonde 4.7 system on both BVLOS contracts, OP46 and OP5 with two different configurations. The ambition of the Company is to generate higher revenue on a lower use of capital in 2023 and 2024 compared to 2022.

Nordic Unmanned will focus on providing drone operational services through Nordun and drone technology through our NUTech portfolio. Sale of other nonstrategic assets will also be considered, and we have mature processes related to divestments that is expected to take place in Q2.

Financial position

In December 2022, Nordic Unmanned raised gross proceeds of NOK 70 million through a private placement, strengthening the company's liquidity and solidity. Another NOK 9.6 million was raised in a subsequent offering in February 2023. There was no other significant addition to the balance sheet in the quarter, and total assets amounted to EUR 46.1 million. Total equity amounted to EUR 22.5 million, representing a book equity ratio of 49%.

Current assets amounted to EUR 7.7 million, and current liabilities amounted to EUR 9.4 million, including EUR 3.0 million in short-term portion of long-term debt and lease obligations. The company has reduced short-term interest-bearing debt with EUR 4.5 million

Cash flow

Cash flow from operating activities was negative EUR 0.4 million for Q4 2022.

Cash flow from investing activities was negative EUR 1.2 million in the fourth

quarter of 2022, of which EUR 0.6 million was related to purchasing and building drones. EUR 0.6 million was related to intangibles, mainly the development of products and technology.

Cash flow from financing activities was positive EUR 1.8 million for the fourth quarter of 2022. This includes EUR 6.4 million in net proceeds from the issuance of new equity. Short-term interest-bearing debt related to the overdraft facility has significantly decreased by EUR 4.3 million.

Operational review

*Financial results comparisons from the previous year referred to herein are pro-forma and give a good indication of changes in activity and revenue. However, the nature, size and structure of all business units are not comparable, and hence margin comparison gives limited value.

The "Nordun" business unit providing Drone As A Service.

Nordun is a fully integrated BVLOS (Beyond Visual Line of Sight) Drone As A Service pure play airline, incorporating all functions required to deliver and operate complex drone missions with advanced platforms and sensors as a service to its customers. Customers receive full operational management, mission data and agile mission adjustment to support decision making. Nordun serves four markets: Maritime, Defense & Security, Offshore Energy and Rail for both governmental and private enterprise clients. The business unit has a fleet of 20+ drones, which is used to perform its contract portfolio. The fleet is divided into large tactical drones with weight between 45 - 200 kg and small lightweight drones with weight around 3 kg.

The fact that Nordic Unmanned holds a Light UAS Operator Certificate (LUC) allows the company to self-approve operations in the European Economic Area, replacing national regulations and procedures. Nordun has a significant track record flying the Camcopter from Schiebel and the Aerosonde from Textron.

EUR million Q4'22 Q4'21 Change FY'22 FY'21 Change
Revenue 1.5 1.2 20% 9.7 6.3 55%
EBITDA -1.0 -1.2 23% -2.3 -0.1 neg
EBITDA margin -65% -101% -24% -1%

Above all, guarding the lives of the many

Q4 is usually a low season for tactical BVLOS drone operations. Throughout the quarter, the services of Nordun have nevertheless been critical in guarding the lives of the many.

During the quarter, efficiency measures allowed the business to reduce the number of administrative FTEs by 10. Further efficiency measures have been identified and are implemented with effect from Q1 2023.

EMSA was once again the largest customer of Nordun in the quarter. Nordun performed work under the EMSA OP1, OP5, OP12 and OP46 contracts. Nordun performed simultaneous operations on the OP46 and OP10 contracts with EMSA. The OP10 contract

Mission type
General maritime
surveillance missions
64
Vessels overflown 48
Vessel measurements 124
Environmental flights 47

was the most significant source of revenue, with CAMCOPTER®-based BVLOS operations performed for Spanish and French maritime authorities related to emissions monitoring and maritime surveillance activities. The Spanish operations lasted as planned until late November, while the French operations ended as planned at the start of October.

The OP46 deployment in the Baltics for the Finnish and Estonian maritime authorities ended as planned in mid-October. Nordun performed maritime

surveillance with an extended coastal range in the Baltic Sea using the Aerosonde® fixed-wing platform produced by Textron Systems. This first-time fixedwing operation for Nordun successfully demonstrated this tactical drone system's cost-effectiveness and reliability in Nordic Unmanneds' multi-mission campaigns.

The activity level on the OP1/OP12 contracts was higher than in the previous quarter, with fisheries inspections, drills and installations of systems as the main activities.

The Nordic Unmanned crew demonstrated agility in the use of drone technology, further proving our ability to deploy bestfor-purpose-technology for any mission. The crew flew longer flights and achieved 307 CAMCOPTER® flight hours and 93 Aerosonde® flight hours, which represent a new capability in 2022.

Flights and flight hours

Financial results

Revenue in the quarter ended at EUR 1.5 million, representing a 20% increase from Q4 2021, with the OP10 and OP46 contracts as the primary source of revenue. EBITDA was negative EUR 1.0 million, compared to a loss of EUR 1.2 million in Q4 2021.

For the full year, Nordun achieved revenue of EUR 9.7 million generated from activity on the Camcopter (EUR 5.9 million), Textron Aerosonde (EUR 2.4 million) and Light weight operations (EUR 1.4 million). EBITDA ended at negative EUR 2.3 million. In the first half of 2022, substantial efforts were put into training and obtaining full operational capability on the Aerosonde, contributing to a negative EBITDA contribution of EUR 1.9 million. The second half showed significant improvement in operational efficiency and utilisation of our fleet, and the EBITDA contribution ended at negative EUR 0.4 million.

The drone technology and development business unit "NUTech"

The NUTech business unit is the owner of Nordic Unmanned's proprietary drone product and solutions portfolio. The current portfolio is designed, developed, and produced in European NATO countries. This includes the AirRobot product family developed and produced in Germany under AS9100 and ISO 9001 certifications, the DroneMatrix product family developed in Belgium, and the Staaker product family, developed in Norway. Technologies include UAV ('drones') as well as technology attachments such as the Heimdal sensor and is protected through several patents, including a patent for coaxial configuration.

EUR million Q4'22 Q4'21 Change FY'22 FY'21 Change
Revenue 1.5 0.8 89% 2.9 1.4 101%
Gross profit 1.0 0.5 2.0 1.1
Margin 65% 68% 70% 77%
EBITDA* 0.3 0.3 -0.3 0.4
EBITDA margin 21% 38% -9% 27%

Growth in NUTech is driven by increasing revenue from the MIKADO II project with the German Bundeswehr, recurring revenue from MRO and development activity on the MIKADO I contract, commencing of contracts in DroneMatrix, and from coax patent fees with several license contracts signed during the year.

AirRobot (100% ownership)

Founded in 2003 in Arnsberg, Germany, AirRobot is a pioneer in the European drone industry. The company has since 2005 been a supplier to the German armed forces ("Bundeswehr") of both drone systems and Maintenance, Repair and Overhaul ("MRO") and development services. AirRobot became part of the Nordic Unmanned Group through an acquisition in the fourth quarter of 2021. Their drone system, the AR100-H is a system consisting of air vehicle sensors, power source, spare parts, ground control station and related software. Specially made for military and police applications.

Towards the end of the quarter, Nordic Unmanned UK Ltd announced that its customer Lockheed Martin UK Ltd had initiated the procurement of a large quantity of Heimdal sensors and software. The contract will cover the production and supply of sensors, maintenance and modifications related to the sensor, and other related work on the Lockheed Martin Indago 4 drone. The contract period is ten years, with expected revenue to exceed EUR 5 million in 2023. The first EUR 1.5 million call-off in December 2022 was related to the start of the contract. The contract work will primarily be delivered by AirRobot and Nordic Unmanned UK Ltd and may potentially double AirRobots's revenue in 2023 as compared to 2022.

AirRobot has in Q4 extended its contract of performing MRO services and spare parts supply related to the existing Bundeswehr fleet of MIKADO I drones. This contract has been in effect for ten years. The new contract is a multi-year extension with an expected value of up to EUR 3 million.

DroneMatrix (55% majority ownership)

DroneMatrix, located in Hasselt, Belgium, is a European leader in fully autonomous drone-in-a-box solutions. Its main product is the YACOB drone which departs autonomously from a proprietary docking station inside a proprietary container and performs pre-programmed or piloted flights. The drone is suitable for continuous surveillance operations, inspection, mapping, and certain logistics operations and targets civilian and industrial applications. The combination of drone, box and proprietary software makes the DroneMatrix offering attractive for a range of use cases.

Port of Antwerp-Bruges has contracted DroneMatrix to install six drone-in-a-box systems. During the quarter, the company installed four of these six systems.

Furthermore, in the quarter, DroneMatrix won a nine-year frame agreement with InfraBel, Belgium's rail owner and operator. This contract will see multiple DroneMatrix systems installed for monitoring and security functions. The agreement includes service for the Yacob system and will see the first system delivered in Q1 2023.

Financial results

Revenue ended at EUR 1.5 million, an 89% increase from Q4 2021. The revenue is mainly driven by the MIKADO II project with the German Bundeswehr, and maintenance, repair, and overhaul (MRO) services as well as an R&D project from AirRobot, but with increasing contribution also from DroneMatrix where the Port of Antwerp contract has commenced.

License fees from the coaxial configuration patent added another EUR 0.4 million in revenue towards the end of the quarter.

Gross margin ended at 65% and with an adjusted EBITDA of 0.3 million.

Inventory obsoleteness of EUR 0.4 million reduced EBITDA to EUR 0.1 negative. In addition, a write down related to parts of our Staaker product with in total 2.3 million had a negative for the quarter.

Full-year revenue ended at EUR 2.9 million, an increase of 101%, with a gross margin of 70 %, while EBITDA adjusted ended at negative EUR 0.2 million, compared to a profit of EUR 0.4 million in 2021. The second half of 2022 contributed with 70% of the revenue for the year and represents significant progress for the business unit as both AirRobot and DroneMatrix technologies are now generating sales.

Investment in own IP during the quarter was EUR 0.35 million.

As the world transitions to net zero and the emissions regulations are becoming stricter, there is an increased need for emissions measurements, reporting and verification services. Nordic Unmanned Maritime (NUMar) delivers emissions monitoring as a service and verification of greenhouse gas emissions. Through its subsidiaries Ecoxy and NUAer, NUMar serves industrial clients in the maritime industry globally with emissions data and insights, so that customers can make better environmental decisions. Services include accredited NOx measurements from combustion engines, real-time measurements of SOx, NOx, and CO2 from ocean-going vessels, as well as annual verification of CO2 emissions according to the EU ETS scheme.

EUR million Q4'22 Q4'21 Change FY'22 FY'21 Change
Revenue 0.4 0.4 8% 1.9 0.4 357%
EBITDA -0.2 0.0 0.2 0.0 383%
EBITDA -41% -4% 11% -3%
margin

NUAer (Joint venture with 60% ownership)

The mission of NUAer is to support the acceleration of the green transition in the maritime industry through worldleadership control of marine air pollution. NUAer is the result of the JV between Nordic Unmanned and the Finnish company, Aeromon, a Finland-based developer of emission monitoring technology. The JV is strengthening Nordic Unmanned's emission monitoring service offering within the global maritime and offshore energy industry. NUAer is based in Sandnes, Norway.

NUAer got its commercial breakthrough in 2022, and the company has performed several projects demonstrating the concept and technology. Customers include Port of Turku and Equinor, where Nordic Unmanned partnered to deliver drone services. Following Schiebel's integration work adding the emissions

monitoring capability to the Camcopter, a successful test was carried out in the Gibraltar Strait in the fourth quarter.

Ecoxy (100% ownership)

Since its foundation in 2003, Ecoxy has performed accredited emission measurements on ships, platforms and rigs. They are measuring NOx, HC, CO, CO2, O2 and particles. The measurements are made in accordance with IMO NOx Technical Codes.

Ecoxy also delivers third-party verification of GHG emissions under the EU ETS legislation. They have been accredited (ISO 14065 and EU Regulation 600/2012) since 2014 and have carried out verifications of greenhouse gas emissions for several plants (about 30-40 plants per year). The plants are several types of industries and offshore.

The company was acquired by Nordic Unmanned in 2021. Ecoxy has completed

almost 1,300 measurement assignments and has a strong presence in marine and industrial industries in Norway Sweden and Denmark.

The company provides data intelligence and services within the Maritime focus area and complements the existing Nordic Unmanned offerings of emission monitoring by drone, to include verification and accreditation, which adds further customer value.

Ecoxy experienced high activity for accredited NOx measurements in Scandinavia throughout the 4th quarter, with 22 emission measurements. The company remains a leading provider of accredited NOx measurements and verification of GHG emissions.

Financial results

For the fourth quarter, revenue for NUMar ended at EUR 0.4 million, equal to the same period last year. EBITDA ended at negative EUR 0.2 million (break-even in 2021). Ecoxy is the highest contributor with 90% of the revenue.

For the full year 2022, NUMar ended with a revenue of EUR 1.9 million in 2022, with an EBITDA of EUR 0.2 million representing an EBITDA margin of 11 %. Ecoxy remains the main contributor with a revenue of EUR 1.7 million representing an all-time high level and a 34% increase compared to 2021. EBITDA for Ecoxy ended at EUR 0.5 million representing an EBITDA margin of 25%. (EUR 0.4 million 25% margin in 2021)

The sales and distribution business unit "NUGlobal"

NUGlobal is the global sales and distribution network of NUTech, and markets Nordic Unmanned's own products, solutions, and services, as well as managing the distributors and system integration activity and our reseller activity of third-party products. The business unit represents important OEM partners such as Lockheed Martin, Textron Systems and Sky Hero.

EUR million Q4'22 Q4'21 Change FY'22 FY'21 Change
Revenue 0.3 0.1 183% 2.1 1.1 92%
Gross Profit 0.1 0.1 94% 0.7 0.4 88%
Margin 39% 57% 32% 33%
EBITDA -0.3 -0.3 -0.8 -0.5
EBITDA margin -81% -270% -39% -45%

Nordic Unmanned expanded its global sales distribution network in the fourth quarter with the addition of the Caribbean. The North American office was established and is experiencing high activity and commercial traction on the drone-in-a-box solution from DroneMatrix and AR100-H from AirRobot

Tender activity was high, and towards the end of the quarter, Nordic Unmanned UK Ltd was instrumental in securing the TIQUILA award from Lockheed Martin UK Ltd. The contract work will primarily be delivered by AirRobot, and hence will

generate revenue also in other business units.

Financial Results

The fourth quarter ended with revenue of EUR 0.3 million, a 183% increase from the same quarter in 2021. The gross margin ended at 39%, with a negative EBITDA of EUR 0.3 million. An EUR 0.2 million one off cost related to a contract assets, reduced EBITDA to a loss of EUR 0.5 million.

Full-year revenue ended at EUR 2.1 million, representing a 92% growth compared to the full-year 2021. Full-year gross margin finished at 32%, and the EBITDA contribution was negative EUR 0.8 million.

Outlook

Group

Nordic Unmanned will enter 2023 with a simplified structure and clear market focus to secure profitable growth within the central business units.

The NUMar business unit will become a part of Nordun during Q1, representing the drone-as-a-service offered by Nordic Unmanned.

NUGlobal has developed to become a sales and distribution unit for the NUTech portfolio of products. Around 85% of the sales in 2023 are expected to be Nordic Unmanned proprietary products. NUGlobal will become a part of NUTech from a reporting point of view during Q1, with geographical subsidiaries able to serve both NUTech and Nordun in their respective markets.

In 2023, the focus will be on drone flight services (Nordun) and technology products (NUTech). The contracts awarded in the last half of 2022 provide a strong backlog for both segments' continuing strong and profitable growth in 2023.

Revenue target for the Group is EUR 30 million based on current and projected new contracts and current visibility based on actual purchase orders is 87%. Revenue generated from the high-margin NUTech portfolio is expected to account for more than 50% of the total revenue. This will improve the company's profitability significantly. The identified risk of not achieving the revenue expectation is mainly related to operational, production and to a minor degree, commercial risk.

The contract backlog for the Group is approximately EUR 89 million, where the OP5 contract and the TIQUILA awards have been added since last quarter. Contract backlog includes the maximum remaining estimated value of signed and/or awarded contracts. Annual utilization is based on call offs, contract estimates and client feedback.

The CRM pipeline of the Group is at EUR 1.3 billion, with EUR 67 million awaiting decision in the next six months, with the biggest opportunities being in the US market and urgent requests for drones due to the increased security focus in Europe. The value-adjusted win rate of the Nordic Unmanned Group is 53%. This number is based on 113 historical opportunities with value above EUR 200.000.

We will drive profitability through improved efficiency, utilization of crew and assets, reduction of operational costs and the next generation of BVLOS contracts with a rate increase.

The expected shift in technology product mix from reseller products only, to primarily sales and distribution of our own product portfolio will materially improve margins and profits.

Target EBITDA margin of approx. 10% for the full year, and accumulated breakeven from Q2.

Target cash positive from operations for the full year, accumulated breakeven in Q2.

Main risks

Some of the main risks involved to reach these targets are:

  • Fulfillment of AR100-H first delivery in Q2 (Bundeswehr contract)
  • Fulfillment of Heimdal first delivery in Q2 (Lockheed Martin UK contract)
  • Fluctuation in EMSA contract calloffs in the second half of 2023
  • Three parallel deployments with up to 6000 flight hours
  • Industrial roll out of drone-in-a-box systems and services

Services in 2023 - Nordun

Total flight hours for 2022 were approximately 3000, double that of 2021, using drone systems with sophisticated sensors for pollution monitoring, fishery control, and maritime and border surveillance. In 2023, the number of flight hours is expected to double again, with the OP46 contract with EMSA being the main contributor to revenue. An increase in missions using proprietary technology is expected in 2023. The operations center in Sandnes is expected to serve the growth in operations of the DroneMatrix Yacob drone-in-a-box product.

Services backlog

The backlog of Nordic Unmanned services is around EUR 58 million. Contract backlog is defined as the maximum remaining estimated value of signed and/or awarded contracts. Annual utilization is based on calloffs, contract estimates and client feedback.

Products in 2023 - NUTech

The sale of proprietary drone technology from the AirRobot and DroneMatrix subsidiaries is expected to increase and match revenue from flight services in 2023.

Germany-based subsidiary AirRobot is expected to deliver the first batch of the AR-100H small reconnaissance system to the German Bundeswehr under the MIKADO II program in Q2 2023, following German military airworthiness certification. Once completed, the airworthiness certification will be the first of its kind for this drone type in NATO. The sensor and sensor software developed for the AR-100H is also currently being prepared for production for delivery to Lockheed Martin UK Ltd. The sensor will be integrated with the Lockheed Martin Indago 4 drone for inclusion in the 10-year TIQUILA drone program for the UK Ministry of Defense.

Product backlog

The backlog of the NUTech portfolio is around EUR 30 million.

The business units

Nordun – Drone services

Nordun is the world's first fully integrated BVLOS (Beyond Visual Line of Sight) drone as a service pure-play business unit, incorporating all functions required to operate complex drone missions with advanced platforms and sensors.

The previous maritime Data-As-A-Service (DaaS) business unit which includes the subsidiary NUAer and Ecoxy will be a part of the Nordun business unit going forward.

Nordun is the holder of a multiplatform LUC (Light Unmanned UAS Operator Certificate), allowing for operations utilizing both large tactical drones and smaller lightweight drones.

The business unit is ISO 9001 certified and has fully integrated maintenance control, operational maintenance, and training departments. In addition, the business unit includes administrative functions such as an HSEQ department, logistics department and commercial resources.

The business unit has a modern fleet of three rotary-wing Schiebel CAMCOPTER® S-100 systems (five air vehicles) and two fixed-wing Textron Aerosonde® systems (five air vehicles), in addition to a fleet of 27 smaller lightweight drones, the vast majority being Lockheed Martin Indago 3 drones. The aggregate fleet value is EUR 21 million.

Investments have been made in building an operational organization of 79 FTEs that includes trained pilots and technicians.

Nordun delivers drone services to four markets: Maritime, Defense & Security, Offshore Energy and Rail for both governmental and private enterprise clients.

NUTech – Products

The NUTech business unit is the owner of Nordic Unmanned's proprietary drone product and solutions portfolio. The current portfolio is designed, developed, and produced in European NATO countries. This includes the AirRobot product family developed and produced in Germany under AS9100 and ISO 9001 certifications, the DroneMatrix product family developed in Belgium, and the Staaker product family, developed in Norway. Technologies include UAV's ('drones') as well as technology attachments such as the Heimdal sensor, and the patent for coaxial configuration.

NUTech currently employs software developers and engineers, manufacturing and administrative resources. The size of the production facility in Germany is 1500m2. Nordic Unmanned has invested EUR 11 million in NUTech, including its own IP and the acquisition of AirRobot and DroneMatrix.

NUTech leverages a global sales and distribution network which markets Nordic Unmanned's own products, solutions, and services, as well as managing the distributors and system integration activity and our reseller activity of third-party products. The business unit represents important OEM partners such as Lockheed Martin, Textron Systems and Sky Hero.

The distribution network makes use of Nordic Unmanned established subsidiaries in Norway, the UK, Denmark, Germany, Belgium, and the US as local sales representatives, as a pathway to market.

NUTech will provide products and solutions to Nordun and Nordic Unmanned's global distribution network.

Disclaimer – forward looking statement

In addition to historical information, this presentation contains statements relating to our future business, events and/or results. These "forward-looking" statements include certain estimates, assumptions and projections of Nordic Unmanned ASA (the "Company"), based on information currently available to the Company. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements preceded by, followed by ords that include the words "estimate, "plan," project," "forecast," "intend," "expect," "predict," "anticipate," "believe," "think," "view," "seek," "target," "goal" or similar expressions; any projections of earnings, revenues, expenses, synergies, margins or other financial items; any statements of the plans, strategies and objectives for future operations, including integration and any potential restructuring plans; any statements concerning proposed new products, services, developments or industry rankings; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.

Forward-looking statements do not guarantee future performance and involve risks and uncertainties. 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 report. These forward- looking statements are based on the current estimates and projections of the Company. No update or revision will be made to forward-looking statements contained herein, whether as a result of new information, future events or otherwise. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies, which are impossible to predict and are beyond Company's control, the Company cannot assure achievement or accomplishment of such expectations, beliefs or projections.

The release, publication or distribution of this report/presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this report/presentation is released, published or distributed should inform themselves about, and observe, such restrictions. This report/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 ASA.

Interim Unaudited Financial statements

Unaudited Condensed Consolidated statement of profit or loss and other comprehensive income

Quarters Full year
Amounts in EUR Notes Q4 2022 Q4 2021 2022 2021
Operating revenue 3,4 3 705 502 2 499 707 16 476 046 9 185 911
Cost of goods sold 4 748 738 609 589 2 627 077 1 539 041
Personnel expenses 4 3 588 516 2 414 538 12 994 797 6 440 359
Depreciation and amortisation expenses 5,6 1 724 409 995 190 5 519 030 2 066 650
Impairments 5,6 2 323 487 0 2 323 487 0
Other operating expenses 4 2 357 881 2 310 464 10 039 178 6 460 748
Total operating expenses 10 743 031 6 329 782 33 503 568 16 506 798
Operating profit (loss) -7 037 529 -3 830 075 -17 027 522 -7 320 887
Net financial income / (expense) 7 -195 814 -918 -1 070 321 149 899
Profit (loss) before tax -7 233 343 -3 830 992 -18 097 843 -7 170 988
Income tax expense (benefit) 5 089 782 -1 054 347 2 842 039 -1 344 803
Profit (loss) for the period -12 323 125 -2 776 646 -20 939 882 -5 826 185
Allocation of profit or loss:
Profit/loss attributable to non-controlling interests -153 309 -42 572 -325 209 -42 572
Profit/loss attributable to the parent -12 169 816 -2 734 073 -20 614 673 -5 783 613
Amounts in EUR Notes 31 Dec 2022 31 Dec 2021
ASSETS
Non-current assets
Goodwill 6 3 361 937 1 747 063
Other intangible assets 6 12 567 978 11 812 673
Deferred tax assets 8 0 2 879 890
Total intangible assets 15 929 915 16 439 627
Aircraft and spare parts 5 19 092 836 8 978 943
Assets under construction 5 452 902 5 814 778
Fixtures and fittings 5 1 735 176 1 788 938
Right-of-use assets 985 414 1 255 568
Total tangible assets 22 266 328 17 838 227
Investment in associated companies 0 3 003
Total financial non-current assets 0 3 003
Other non-current assets 169 359 -
Total non-current assets 38 365 602 34 280 857
Current assets
Inventory 1 818 525 2 830 111
Trade receivables 1 078 787 435 717
Other short-term receivables 4 027 914 2 318 070
Cash and cash equivalents 811 852 5 594 043
Total current assets 7 737 078 11 177 941
TOTAL ASSETS 46 102 680 45 458 798

Unaudited Condensed Consolidated statement of financial position

Amounts in EUR Notes 31 Dec 2022 31 Dec 2021
EQUITY AND LIABILITIES
Equity
Equity attributable to equity holders of the parent 21 931 631 26 562 446
Non-controlling interests 578 133 957 576
Total equity 22 509 764 27 520 022
Non-current liabilities
Interest bearing loans and borrowings 10 334 323 6 893 392
Non-current lease liabilities 715 229 923 666
Other non-current liabilities 2 079 864 409 212
Deferred tax liabilities 1 021 370 807 477
Total non-current liabilities 14 150 786 9 033 747
Current liabilities
Trade payables 2 384 500 1 166 000
Interest bearing loans and borrowings 2 673 760 3 086 797
Current lease liabilities 369 242 369 242
Public duties payable 1 079 377 743 818
Other current liabilities 2 935 252 3 539 173
Total current liabilities 9 442 131 8 905 030
Total liabilities 23 592 917 17 938 777
TOTAL EQUITY AND LIABILITIES 46 102 680 45 458 798

Unaudited Condensed Consolidated statement of financial position cont.

Unaudited Consolidated statement of changes in equity

Non
registered Share Non
Share Share share Treasury Retained holders Controlling Total
Amounts in EUR capital premium capital shares earnings Equity Interests Equity
At 31 December 2021 2 631 846 33 067 698 - -213 -9 136 885 26 562 446 957 576 27 520 022
Profit (loss) for the period -2 602 155 -2 602 155 -54 149 -2 656 304
Issue of share capital 15 826 60 000 75 826 75 826
Share-based payments 113 990 113 990 113 990
Currency translation effects 183 887 183 887 -85 183 802
At 31 March 2022 2 647 672 33 127 698 - -213 -11 441 163 24 333 993 903 342 25 237 335
Profit (loss) for the period -3 622 239 -3 622 239 -61 546 -3 683 785
Issue of share capital 356 000 7 083 946 7 439 946 7 439 946
Issue of share capital 1 526 565 1 526 565 1 526 565
(non-Registered)
Share-based payments
113 262 113 262 113 262
Currency translation effects -7 249 -7 249 -566 -7 814
At 30 June 2022 3 003 672 40 211 644 1 526 565 -213 -14 957 389 29 784 278 841 230 30 625 509
Profit (loss) for the period -2 220 985 -2 220 985 -56 438 -2 277 423
Issue of share capital 69 890 1 412 514 1 482 404 1 482 404
Issue of share capital -1 526 565 -1 526 565 -1 526 565
(non-Registered)
Share-based payments
114 072 114 072 114 072
Currency translation effects -34 378 -34 378 -34 378
At 30 September 2022 3 073 562 41 624 158 - -213 -17 098 681 27 598 826 784 792 28 383 618
Profit (loss) for the period -12 169 816 -12 169 816 -153 309 -12 323 125
Issue of share capital 1 118 833 5 243 638 6 362 471 6 362 471
Share-based payments 102 161 102 161 102 161
Currency translation effects -15 738 -8 478 376 376
At 31 December 2022 4 192 395 46 867 796 - -213 -29 182 074 21 877 904 631 859 22 509 764
Amounts in EUR Quarter Full year
Cash flows from operating activities Q4 2022 2022
Profit or loss before tax -7 233 343 -18 097 676
Adjustments to reconcile profit before tax to net cash flows:
Net financial income/expense 397 084 892 381
Depreciation and amortisation 3 984 676 7 572 363
Amortisation and impairment of Right-of-use assets 63 220 270 154
Share-based payment expense 102 161 309 190
Working capital adjustments:
Change in inventory 520 591 987 387
Changes in trade receivables 1 223 880 -411 474
Changes in trade payables -71 388 994 250
Changes in other operating assets and liabilities 495 063 -1 527 299
Net cash flows from operating activities -518 055 -9 010 725
Cash flows from investing activities
Purchase of property, plant and equipment -606 600 -8 155 007
Purchase of capitalised intangible assets -560 936 -3 290 400
Consideration paid in DroneMatrix and TeAx transaction (net of cash acquired) 0 -1 563 315
Net cash flow from investing activities -1 167 537 -13 008 723
Cash flow from financing activities
Proceeds from issuance of equity 6 811 867 16 260 597
Transaction costs on issue of shares -449 395 -899 949
Net disbursements overdraft facility -4 337 120 -
Proceeds from new debt (short / long term) 781 298 6 191 191
Repayment of debt (short / long term) -669 883 -3 274 171
Payments of lease liability -75 355 -326 466
Interest paid -254 494 -703 185
Net cash flows from financing activities 1 806 918 17 248 018
Net increase/(decrease) in cash and cash equivalents 121 326 -4 771 430
Cash and cash equivalents at beginning of the period 693 916 5 594 033
Net foreign exchange difference -3 390 -10 752
Cash and cash equivalents, end of period 811 852 811 852

Unaudited Condensed Consolidated statement of cash flows

Notes Note 1 General

Nordic Unmanned ASA is a limited liability company incorporated and domiciled in Norway and whose shares are traded on the Euronext Growth market in Norway. The Group's head office is located at Rådhusgata 3, 4306 Sandnes, Norway.

Nordic Unmanned is a global leader of high-end products and services related to drones and data capture. Through world-wide operational experience and industry leading expertise, Nordic Unmanned supports large governmental and industrial clients in the adaptation of unmanned systems and services.

Note 2 Basis of preparation

The Condensed consolidated interim financial statements of Nordic Unmanned ASA and its subsidiaries (collectively, "the Group" or "Nordic Unmanned") for the period ended 31 December 2022 have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim financial statements do not include all information required by IFRSs and should be read in conjunction with the Group's 2021 annual financial statements which will be publicly available at www.nordicunmanned.com. The interim financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the financial position, results of operations and cash flows for the dates and interim periods presented. Interim period results are not necessarily indicative of results of operations or cash flows for an annual period. These interim financial statements have not been subject to review or audit by independent auditors. These interim financial statements were authorised for issue by the Company Board of Directors on 23 February 2023.

The interim consolidated financial statements of the Group comprise consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of cash flows, consolidated statement of changes in equity, and related notes. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the IASB and as endorsed by The European Union ("EU").

The consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at fair value. The financial statements are prepared based on the going concern assumption.

Comparative financial information is provided for the preceding period in the Consolidated statement of comprehensive income and Consolidated statement of financial position.

Presentation currency and functional currency

The consolidated financial statements are presented in Euros (EUR), which is also the functional currency of the parent company. The functional currency of the parent company was changed from NOK to EUR effective from 1 January 2022 as the primary economic environment was determined to be EUR from this date.

For presentation purposes, balance sheet items are translated from functional currency to presentation currency by using exchange rates at the reporting date. Items within total

comprehensive income are translated from functional currency to presentation currency by applying average exchange rates for the period. If currency rates are fluctuating significantly, transaction date exchange rates are applied for significant transactions.

Note 3 Revenue

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The Group has generally concluded that it is the principal in its revenue arrangements, because it typically controls the goods or services before transferring them to the customer.

Revenue from the sale of goods is recognised over-time to the extent the Group's performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. Progress is measured using a cost-to-cost based approach. Other sale of goods is recognised at the point-in-time when control of the asset is transferred to the customer. The determination of over-time versus point-in-time revenue recognition and determining progress requires the use of judgement.

Per area of operation: Q4 2022 Q4 2021 YTD 2022 YTD 2021
Nordun 1 483 139 1 227 383 9 665 472 6 270 488
NUTech 1 488 062 785 896 2 875 797 1 433 283
Numar 405 584 376 558 1 866 865 408 583
NUGlobal 328 717 116 288 2 069 723 1 075 634
Overhead - -6 418 3 525 -2 078
Eliminations - - -5 336 -
Total 3 705 502 2 499 708 16 476 046 9 185 910

Revenue from services is recognised over-time as the customer simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs.

Per geographic market: Q4 2022 Q4 2021 YTD 2022 YTD 2021
Spain 960 762 638 707 2 162 079 1 617 587
Germany 947 090 787 302 3 325 424 1 366 423
Norway 888 715 481 203 4 618 654 1 511 858
Estonia 199 505 - 1 460 503 -
Portugal 109 450 149 198 475 695 668 050
France 72 474 259 738 2 084 655 1 678 777
Romania 39 896 7 959 57 519 360 783
Finland 11 660 16 839 211 3 410
Lithuania 5 000 -535 - 1 178 603
Other 470 951 176 120 1 452 307 800 421
Total 3 705 502 2 499 708 16 476 046 9 185 911

Note 4 Segment

The Group's operating segments are components of the business for which discrete financial information is reviewed regularly by the Chief Operating Decision Maker (or CODM) to assess performance and make decisions regarding resource allocation. The Group has assessed the CODM to be its Chief Officers team. As at 31 December 22, the Group's operating segments are Nordun, NUTech, NUGlobal and NUMar segments.

These operating segments are regularly reviewed by the Group's CODM for the purpose of allocating resources to the segment and to assess its performance. The key measure used by the CODM in assessing performance and in making resource allocation decisions is EBITDA.

The following tables include the results for the Groups's reportable segments for the periods presented in these consolidated financial statements:

Q4 2022 Nordun NUTech NUmar NUGlobal Overhead Eliminations Total
Revenues 1 483 139 1 488 062 405 584 328 717 0 - 3 705 502
Costs of goods sold 26 206 502 741 68 055 200 231 -48 495 - 748 738
Personnel Expenses 1 300 271 691 744 275 010 444 028 877 463 - 3 588 516
Impairments - 2 323 487 - - - - 2 323 487
Other Operating Expenses 1 111 336 369 241 229 519 206 839 440 946 - 2 357 881
EBITDA -954 674 -2 399 151 -167 000 -522 381 -1 269 914 - -5 313 120
Q4 2021 Nordun NUTech NUmar NUGlobal Overhead Eliminations Total
Revenues 1 227 383 785 896 376 558 116 288 -6 418 - 2 499 708
Costs of goods sold 256 184 248 003 52 611 49 857 2 934 - 609 589
Personnel Expenses 1 010 091 149 756 256 700 180 695 817 296 - 2 414 539
Impairments - - - - - - -
Other Operating Expenses 1 204 044 87 714 82 679 199 966 736 061 - 2 310 464
EBITDA -1 242 937 300 423 -15 432 -314 230 -1 562 709 - -2 834 884
YTD 2022 Nordun NUTech NUmar NUGlobal Overhead Eliminations Total
Revenues 9 665 472 2 875 797 1 866 865 2 069 723 3 525 -5 336 16 476 046
Costs of goods sold 266 797 842 633 168 185 1 399 418 -49 955 - 2 627 078
Personnel Expenses 6 480 854 1 837 404 987 321 1 025 676 2 663 542 - 12 994 797
Impairments - 2 323 487 - - - - 2 323 487
Other Operating Expenses 5 249 700 833 563 509 302 710 273 2 741 676 -5 336 10 039 178
EBITDA -2 331 879 -2 961 290 202 057 -1 065 644 -5 351 738 - -11 508 494
YTD 2021 Nordun NUTech NUmar NUGlobal Overhead Eliminations Total
Revenues 6 270 488 1 433 283 408 583 1 075 634 -2 078 - 9 185 910
Costs of goods sold 427 963 326 515 57 101 719 494 7 967 - 1 539 040
Personnel Expenses 3 339 018 525 848 270 453 468 423 1 836 617 - 6 440 359
Impairments - - - - - - -
Other Operating Expenses 3 818 931 197 466 92 581 375 442 1 976 328 - 6 460 748
EBITDA -1 315 424 383 454 -11 553 -487 724 -3 822 991 - -5 254 237

Note 5 Property, plant and equipment

Disposal during Q4 is related total loss of assets pending insurance claim.

Fixtures, fittings
and tools
Aircraft and
spareparts
Assets under
construction
Total
Cost as at 31 December 2021 2 638 209 10 408 449 5 814 778 24 676 213
Additions 214 973 4 767 533 418 648 5 401 153
Transfer - 6 233 425 -6 233 425 -
Currency translation effects 14 101 - - 14 101
Cost as at 31 March 2022 2 867 283 21 409 406 - 24 276 689
Additions 134 548 1 436 631 60 643 1 631 822
Currency translation effects -23 568 - - -23 568
Cost as at 30 June 2022 2 978 262 22 846 038 60 643 25 884 943
Additions 66 303 446 561 87 711 600 574
Disposals - -34 893 - -34 893
Currency translation effects -22 612 - - -22 612
Cost as at 30 September 2022 3 021 953 23 257 705 148 355 26 428 012
Additions 34 390 338 505 392 247 765 142
Transfers - 87 699 -87 699 -
Disposals - -1 339 998 - -1 339 998
Currency translation effects 2 804 684 - 3 488
Cost as at 31 December 2022 3 059 147 22 344 596 452 902 25 856 644
Depreciation and impairment as at 31 December 2021 849 271 1 429 505 - 2 278 776
Depreciation 103 751 279 034 - 382 785
Currency translation effects 359 - - 359
Depreciation and impairment as at 31 March 2022 953 380 1 708 539 - 2 661 919
Depreciation 112 015 556 247 - 668 262
Transfer - - -
Depreciation and impairment as at 30 June 2022 1 064 906 2 264 786 - 3 329 692
Depreciation 120 119 590 927 - 711 046
Disposals - -5 809 - -5 809
Currency translation effects 775 - - 775
Depreciation and impairment as at 30 September 2022 1 185 799 2 849 904 - 4 035 703
Depreciation 137 996 595 534 - 733 530
Disposals - -193 679 - -193 679
Currency translation effects 175 - - 175
Depreciation and impairment as at 31 December 2022 1 323 971 3 251 759 - 4 575 730
Net book value:
At 31 December 2021 1 788 938 8 978 943 5 814 778 16 582 659
At 31 March 2022 1 913 902 19 700 867 - 21 614 770
At 30 June 2022 1 913 357 20 581 252 60 643 22 555 252
At 30 September 2022 1 836 154 20 407 801 148 355 22 392 309
At 31 December 2022 1 735 176 19 092 837 452 902 21 280 915

Economic life (years) 3-5 5-10

Depreciation plan Straight-line method Straight-line method No depreciation

Note 6 Intangible assets

During Q4 2022 the Group completed the closing of the Staaker development office in Oslo. As a result, the group recognized an aggregate of 2.3 million in impairment charge related to the development on the Staaker product line and the 0.1 million in goodwill related to the Staaker product line.

Concessions,
Development patents and
licenses
Goodwill Total
Cost as at 31 December 2021 6 586 216 6 254 330 1 747 064 14 588 901
Additions 859 867 258 732 - 1 118 599
Currency translation effects 32 004 10 883 58 187 101 074
Cost as at 31 March 2022 7 478 087 6 523 944 1 805 251 15 807 282
Additions 3 086 895 182 579 1 507 952 4 777 426
Disposals - - - -
Currency translation effects -54 103 -17 140 -25 064 -96 307
Cost as at 30 June 2022 10 510 879 6 689 383 3 288 139 20 488 401
Additions 750 773 15 183 142 562 908 517
Currency translation effects -16 984 -7 304 -8 489 -32 778
Cost as at 30 September 2022 11 244 667 6 697 262 3 422 212 21 364 141
Additions 489 241 21 348 - 510 589
Currency translation effects -7 432 -4 203 204 -11 431
Cost as at 31 December 2022 11 726 476 6 714 407 3 422 416 21 863 299
Amortization and impairment as at 31 December 2021 605 023 422 849 - 1 027 873
Amortization 307 121 119 133 - 426 254
Currency translation effects -1 069 -460 - -1 529
Amortization and impairment as at 31 March 2022 911 076 541 522 - 1 452 598
Amortization 323 677 241 740 - 565 418
Currency translation effects 1 460 628 - 2 088
Amortization and impairment as at 30 June 2022 1 236 213 783 891 - 2 020 104
Amortization 423 487 241 743 - 665 229
Currency translation effects 2 308 993 - 3 300
Amortization and impairment as at 30 September 2022 1 662 008 1 026 626 - 2 688 634
Amortization 682 410 245 212 - 927 622
Impairment 2 254 265 - 60 478 2 314 743
Currency translation effects 1 509 875 - 2 384
Amortization and impairment as at 31 December 2022 4 600 191 1 272 713 60 478 5 933 383
Net book value:
At 31 December 2021 5 981 192 5 831 481 1 747 064 13 561 029
At 31 March 2022 6 567 011 5 982 422 1 805 251 14 354 684
At 30 June 2022 9 274 666 5 905 493 3 288 139 18 468 297
At 30 September 2022 9 582 660 5 670 636 3 422 212 18 675 507
At 31 December 2022 7 126 285 5 441 693 3 361 938 15 929 916

Economic life (years) 5-10 5-10

Amortization plan Straight-line method Straight-line method No Amortization

Note 7 Financial income and expenses

Finance income Q4 2022 Q4 2021 YTD 2022 YTD 2021
Interest income 13 238 12 537 13 821 12 730
Other finance income 69 998 - 77 741 3 846
Gain on foreign exchange 219 321 118 040 686 115 462 047
Total finance income 302 557 130 577 777 677 478 624
Finance costs Q4 2022 Q4 2021 YTD 2022 YTD 2021
Interest expenses 373 895 69 081 839 040 82 208
Interest expense on lease liabilities 12 135 13 649 41 252 27 662
Other finance costs 35 765 9 399 108 239 83 674
Loss on foreign exchange 76 575 39 366 859 466 135 180

Nordic Unmanned AS Rådhusgata 3 4306 Sandnes, Norway

+47 51 20 94 44

[email protected]

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