Norbit Asa

from the quarter before, and we have an EBITDA contribution of just under 30 million kroner, which gives us an EBITDA margin of 19%, which is almost at a level that is worth Nordbit. Given the challenges and the context that has been, we consider this to be satisfactory. Even though we are impatient to get started and deliver properly. We look forward to the world to be a little different. An important milestone in the quarter is the launch of a new sonar family. I will come back to that and try to explain a little more about what is new with it. but it's one that got the name Winghead, so I'm a bit familiar with that. If we dive a bit into the segments, we can start with Oceans first. And for the new ones that are looking at us here, we can say that Oceans is... The part of Norbit that works with satellite technology into a maritime market. That is to say that it is tailored technology in the ocean space domain. What has been the driver in this development has been integrated sonar systems that are used for ground mapping and inspections. And there is a proprietary sonar technology, where we have integrated a number of other sensors such as LiDAR and more, which makes it very effective to complete 3D data sets in an area where you do inspections. The profile picture here is an example of that. In addition, we also have a lot of technology for sea use. We have sent a message recently about repeat contracts, and some special lighting that we will deliver to the construction businesses. We also have a number of solutions that go to the environment surveillance, where we also recently marked a contract for a delivery to an Asian company. In the second quarter, OceanSol has delivered the titles. I'm going to repeat a bit. These are the solar systems that have been the drivers. They have a nature... It's usually from two to four weeks before we get an order to deliver. In Q1, it was... in Asia, we know that Europe and America have been halfway in the Q2. Given that understanding, we are satisfied with landing the quarter on a turnover that is slightly higher than the quarter before, and you can see the magic follow after. We have been clear in our strategy that it is important for Nordby to work with broadening the product portfolio in order to increase the addressable market. We have said that we have a priority on R&D investments towards the ocean segment. I have some examples that show what we have spent money on in preparation for R&D. And as you can see here, CECOP is a system for environmental monitoring and surveillance. We met in January with a contract on the solutions for a North American energy company. And we have a report here this summer. that went on a delivery to an Asian customer. And this makes me very happy to see that the market apparatus we have built around this sonar sale manages to identify and sell this type of system solutions. One such system delivery like this is a lot of in value than it would be on a solar system. And it would, in any case, also be some engineering adaptation to the individual. Here we have invested well in development. When the contracts come, you see that it was well spent money. But we also see that we can put new things up here. So here there is a lot of software development. So we have mentioned Vinger, the latest channel that we have launched. There are a few slides afterwards that will explain a little more what this is compared to what we have done before. A short teaser of something that has not been launched yet, but that we are actively working on. It is a completely new sonar for some safety uses. A sonar that has 360 degrees and a much longer range than the ones we have today. It can be in relation to surveying haven areas and that kind of thing. So stay tuned, we will come up with more information afterwards. Back to the Winghead-journal. Here we have a picture of our new family member. If you look at the shape factor on it, you can see a picture of a winged shark. You can see where the expression of the trademark has come from. The winged shark has a curve and a very large, elongated head, which gives it a very long spacing between the eyes. Here we have a picture. which shows practical use of the sonar. A survey has been done here in Nidarba, in the technology capital, where the Vinghild sonar has collected data underwater. Here you can see a landmark in Trondheim, an old town hall. and bridge rows next to it. It's the laser that has captured it. We've seen this before, and what's new? What has Vignet done against the Torgesonaren? If we zoom in here, you'll see that this is the same data set, and then you see that there is an object behind the mason. This is a much bigger solution. that allows you to detect objects and features in a much better way than the other, more standard system. What are you going to use this for? You can use it for both red-card storage and cable storage. If this was a power cable, The object there could be useful to detect before you start digging or something like that. What we also see is that in a more high-end, professional market, asset owners, let's take for example a windmill park. The owner of the windmill park wants the builder to document that He specifies that this inspection should be done with this type of solution zones. The solution we have now, address it and put it in the market. This means that we have expanded the addressable market. There has to be some cannibalization, that the new one can We have mentioned earlier that ITS has a relatively strong correlation on parts of the products against the new car production of trucks. ITS delivers different types of safe, wireless communication in several truck uses. It is well known that truck manufacturers in Europe have shut down their factories in Q2. A part of the contracts we have are set up in such a way that when the factories are closed, they will not deliver anything. While some others we have delivered. But when the underlying needs of the customer go down, and you deliver without him leaving, then you build up some stock. This makes the next order wait a little longer. If we look at the numbers for ITS in the quarter, we have a turnover of 38 million kroner, which is like a downfall from the quarter before, based on the fact that customers have stopped. And we have a margin of 13 million, which gives an EBITDA margin of 33% Isolated, we have a 33% margin. That sounds good. But we would like to deliver a little better than that in this segment. It is due to the product mix. We have some products that have a slightly lower margin, which there has been more delivery of in that quarter. So we have had some fluctuations in the margin from quarter to quarter, and that is predictable in the future. I have some news about what we are doing in ITSO. What is very exciting there is that we have a foot in the tolling segment. It is very exciting to see how the value chains are changing now. We can take Norway as an example. We are now in the middle of a money reform. where the output of the business is to be separated from the value of the operator's knowledge. So it will be changed and opened up so that new actors come into those value chains, which means that we can establish other types of relationships. From having been a completely public offer out there, you can see that you can establish a business-to-business situation against new actors. The new actors can have positions that allow you to think innovation in a different way, and think about other types of value chain development. Nordvit is very well positioned to work on new things. The illustration on the slide shows that there can be other types of technological solutions in the future. We have worked together with a number of actors here to demonstrate with a Bluetooth interface, so that the tablet can talk to a phone. The phone has, as many of you know, both GPS and a number of other things, which can make it possible to pay per kilometer quite effectively in a different segment than what we have seen now, where it has been prepared So now we're in technology, demonstration, evaluation phase, together with a lot of big, heavy actors who want to get into these markets here. So this has become a bit of a stay tuned, and keep track of what's going on. The third segment is product innovation and realization. It's a reminder of what we're doing there. We're selling R&D services. The time works of our good engineers are sold to selected key customers to help them with development. In addition, we do some electronic manufacturing services, i.e. contract production of electronics. The strategic rationale for doing this is that when we do R&D services, and tasks for others, we learn new things, both technologically, and we get new domain knowledge that can have a value beyond the fact that we make some money doing it. The same goes for contract production. We said that in 2019, about 50% of the contract production we did was towards some automotive customers. which of course also has a little influence on the business as it is now, but the automotive customers, and what has driven contract production against them for many years, has been one of the elements that has brought us into position to deliver the things that we now have in press. So it's such an industrial building block and a facilitator. In this portal, we have a decline from the previous portal. And that is largely explained by both the fact that some of the automotive contract distribution customers have been shut down and have lower activity, but we have also seen some customers within the R&D services element som en del av sin håndtering av en usikker verden, så har de trabbat litt på bremsen, satt in litt på hold. Ja. Med det tror jeg at jeg vil slippe Per-Christian til her, og så ta oss litt gjennom de finansielle tallene.

Thank you very much. I will use a few minutes to go through the main numbers for the company. The turnover for the second quarter is 155.2 million kroner, which is a decline of 9% from the same period last year, and an increase of 2% from the first quarter. In comparison with last quarter, the results of the pandemic were the largest in the segments ITS and PIB, as Per-Ørigen has mentioned. Both segments have a European customer exposure, where a large number of revenues are related to the transport sector, which has had a remarkable decline in the quarter. Oceans, on the other hand, delivered a revenue increase of 13% from the first quarter. The total operational costs amount to 137.4 million in the quarter, which is down from 161.7 in Q2 2019 and 146.9 in Q1 2020. Note here that the costs in Q2 2019 include 19.5 million in one-time effects due to the termination and implementation of a synthetic option program. EBITDA for the quarter ended at 29.5 million, which gives a 19% margin. Compared to the first quarter, it represents an increase of 13.5 million and a margin improvement of 8.5%. Point. Quarter by quarter, Oceans and Peer delivered improvement in both EBITDA and margin, while development was expected to be the opposite in ITS. Overview for the quarter ended at 11.6 million, from 4.9 in the first quarter of the year. Further to the balance development in the quarter. Buildings, facilities and machines increased by 22.7 million in the quarter. This is due to the purchase of machinery and equipment, as well as investments in the expansion of our production plant in Rørås, which goes as planned. Inventory units increased by 15.1 million. from March 31, which must mainly be explained by the investments we make in research and development to ensure long-term organic growth. The stock market ended at 175.6 million, which is an increase of 15.9 from last quarter. This is partly due to a specific project in Årsens, where the goods were delivered to customers in July. In percentage of the turnover, the stock market is at a high historical level, which is due to the development of a security layer of critical components to ensure flexibility and fast delivery to the customer. This has proved to be a good strategic choice, taking into account the effects COVID-19 has had on our value chain. Customer demand ended at 111.9 million, which is a decline of 44.6 from the first quarter. The decline is partly due to sales quarter by quarter in ITS, as well as the effects of the currency, since a large part of our customer base is denominated in euro and dollar. Revenue yield was reduced by 6.3 million in this year's annual quarter. Our total revenue yield ended at 50.1 million kroner per third of sex, which is a small decline from last quarter. Combined with our balance sheet and excluded leasing obligations, the net income was 45.4 million kroner in the quarter and 25.9 million kroner here on March 31. The net income was 71.9 percent at the end of the quarter. Finally, the company's balance sheet. The change in the balance sheet was a total of minus 20.5 million kroner in the second quarter, Operational activity was a total contribution of 48.3 million, mainly on CART and EBITDA at 29.5 million, and a net change in the annual capital at 20.8 million. We invested 49.6 million in the quarter, divided 9.8 on machinery and equipment, and 18.1 million in the expansion of the factory in Røros. In total, there was an increase of about 30 million kroner per year on the expansion, and we expect an increase of 15-20 million kroner in the second half of the year to complete the project. In addition, investment in research and development was assumed at a total of 21.7 million kroner, which is 14% of the turnover for the quarter. The percentage level is higher than guiding, which was given before the pandemic hit, but we still continue to prioritize planned investments to ensure long-term growth. The cash flow from the financing activities was minus 19.2 million, which is primarily explained by the paid exchange rate of 17 million for the shareholders. In total, we have a cash flow of 4.7 million kroner per 3B6. In addition to the cash, we have 247.3 million in the available frame on our credit line, which contributes to a solid liquidity buffer and flexibility. Then I will leave the floor to Per-Jurgen for some final comments.

Thank you, Per-Jurgen. To conclude, we will look a little ahead. We expect that all our segments will have an impact on this pandemic, as long as the pandemic exists at a level that affects the world as it does today. We have an expectation that the new solar family, Ringet, will continue to be positive in sales. We have seen that the first sales have already been carried out around the entire globe. And the expansion, as I have said, is the addressable market. We expect to have an impact in Q3 in ITS and I mean to get a gradual improvement through Q4. It is important to note that, as I mentioned when we talked about ITS, we have some customers that we have delivered through the first half year, and that their team is a bit built up, which means that we expect a decline in delivery for them in the second half year. The margins in Q3 are expected to be lower than in Q2. We see that some of the R&D projects, including R&D services, that were put on hold, started again. In the long term, we expect to be uh um Yes, as Per-Christian summed up, I have a solid financial position. We intend to be well aligned for further growth. No, it doesn't look like there were any questions. Then we say thank you for your attention, both to those who have have come here in the room and to everyone who has brought us here on Teams.