Norbit Asa

Good morning and welcome to our Q1 2026 presentation. It's now been seven years since we listed Norbit on Oslo Stock Exchange. Many of you have followed us through the whole period. Thank you for your engagement and trust. The one-to-one meetings during these quarterly presentation days, they add fuel to our motivation to continue to explore more. So, thanks. Okay, let's dive into the number. First quarter, 2026. Once again, demonstrate the strategy of having uncorrelated verticals so three verticals having completely different market drivers two also three performs very well one segment is partly slower than the comparable period last year with this we are able to deliver top line growth of 40% where segment connectivity and PIR contributes most to the growth. EBIT in the period ended at 156 million NOX, resulting in an EBIT margin of 21%. So into the segments. In OCEAN's first quarter 26, ended with a decrease of 12% compared to Q1 2025. The year-on-year decline is very much explained through some lower sales of sonars towards rental companies. In Q1, 25, we had several, summing up to three large orders in that sub-segment. So, Pei Fiscom will comment more on that also later during our presentation. This quarter, the EBIT margin in oceans ended at 25%. And as you see, as I commented, the decline is based on lower wing head sales. And as you can see, Q1 25 compared to 24 was particularly strong on that part of our business. We have during the last weeks announced that we're now in some exclusive negotiations related to an acquisition. It's a company that fits very much to our criteria for add-on acquisitions where we'd like to see clear synergies We'd like to see that there is a relevant fit when it comes to technology and market. We'd like the acquisition to be accretive to all the shareholders. It's been many questions and many guesses what kind of company and who this could be. working now to conclude the due diligence and we will finalize an SPA and when everything is ready, we will give you more flavor to this. But it's a very positive add-on for Norbit when everything is concluded. Connectivity, the first quarter of 2026. Connectivity had a new record quarter, 211 million NOFs in revenues, 45% growth since Q1 2025. This is very much as expected, driven by sales on our newest connectivity product, so-called GNSS onboard unit. So this is units used in trucks for satellite-based road toll collection, where we have a strong position working with some of Europe's leading companies in that field. The EBIT margin ended at the 27%, more or less at the same as it was the same quarter last year so and looking into the different product lines as you can see standard onboard units is exactly the same as Q125 it's a decline in tachograph enforcement modules we've been in that period where it has been some retrofit of tachograph units, it's expected to get back to normal, even if maybe Q1 is regarded to be somewhat lower than what we would expect to be normal going forward. On satellite-based tolling units, as I told you is the main driver of the growth from 17 up to 106 million locks in revenues so very important contribution and the final segment product innovation and realization and maybe to remind those of you that has not followed us that closely so in Norbit we focus a lot on doing tailored technology into some selected applications the technology we work with should be hard to create so it motivates the engineers And we are very cautious that when we invest money in R&D, it should be market-driven, meaning there should be an identified need and someone that would be willing to pay for us to sell these products based on this technology later on. So when we were building Norbit, the changes we did back 2008 to 2012, when we acquired some factories to get the capabilities of manufacturing into our own operation, ensuring we are in control of our own destiny, we chose also to continue to do some contract manufacturing. So, although the total manufacturing capacity A little bit more than half of that is used to make Norbit branded products. The remaining part is sold on contract manufacturing terms to other industrial clients. So R&D services and this contract manufacturing is what we report in the product innovation and realization segment. It's been a very interesting journey in the PIR segment. It's been very steep growth, so more than 100% from Q1 last year. So we delivered 339 million NOX in revenues. And with an EBIT margin of 20%, compared to the 14% the same quarter last year. And as we've said, this is very much driven by strong demand from defense and security related clients. We've had some higher degree of other industrial and automotive clients in the past. Some of that we have chosen to scale down free of capacity and also optimize what we do and allocate the resources where we see that we could get or build most value for our clients. And as we said during the last presentation, in Q1 we also opened our new expansion of the serbifactory and have added more capacity on assembly lines. We have announced during the quarter a new award, 150 million NOC contract to an undisclosed European client in the defense and security sectors. This order is to be delivered in the quarter we are already in. headed well into the second quarter of this year. With that said, I'd like to allow Peg Nistrand to give you some more flavor to the financial figures.

Thank you, Peg, again. I will spend a few minutes walking you through the financial highlights of the quarter. First quarter started out well with high activity across our business segments. It was a solid step in the right direction in order to move us towards the target for this year's plan. In short, revenues were up 40% year on year. Even margin came in at 21%. We continue to strengthen our working capital efficiency where cash flow conversion was 105% in the quarter. leading us to reporting a 36% pre-tax return on capital employed for the quarter. Revenues came in at 732.1 million kroner in the quarter, an increase of 40% from the corresponding quarter of 2025, and 45% in constant currency, as both the US dollar and the euro depreciated against the Norwegian kroner. Gross margin was 53%, down from 62%, partly as a result of segment mix, with a higher share of revenues coming off the period segment in this year's quarter, and also partly due to lower realized margins in connectivity and PIR, which I will revert to more on the next page. EBITDA for the quarter was 201.8 million, representing a margin of 28%. This compares to 162 million and a margin of 31% in the same quarter of 2025. Operating profit was 155.9 million, translating into a margin of 21%, and this compares to 127.4 million and a margin of 24% in the same quarter of 25. Net finance expenses were negative 12.5 million, largely explained by 9.5 million in net interest expenses, while tax expenses were 32.4 million, and the net income for the period ended at 111 million, translating into an earnings per share of 173. In the first quarter, oceans delivered 12% revenue decline. Foreign exchange headwinds impacted the top line, and the decline in constant currency was 5% year over year. Revenues declined partly due to lower sales of wingage owner, as first quarter 25 was an unusually strong quarter for wingage sales to rental companies. in which three orders totaling 40 million Norwegian kroner in deliveries ended in last year's first quarter, all of which did not materialize in this year's first quarter. When adjusting for these orders and foreign exchange, the activity and growth in the end markets outside the rental were actually quite healthy compared to the same period of last year. The gross margin was down one percentage point. Payroll expenses increased 1.5 million. while operating expenses was up 4.6 million on freight, sales and marketing and travel expenses, in addition to higher allocated group costs. The EBIT ended at 50.8 million, down from 81.4 million in the same quarter of last year. Collectivity reported an increase in revenues of 45% and 48% in constant currency. The increase was explained by deliveries of the GNSS onboard unit to Toll for Europe, Revenues fell a tad short of expectations as some deliveries were moved into the second quarter this year, creating some timing effects on the results in this year's quarter. Gross margin fell five percentage points, partly explained by product and interest segment revenue mix, partly as a result of weaker euro against Norwegian kroner, as well as price increases on certain raw material components. Employee benefit expenses were up 6.2 million on new hires and wage inflation, while operating expenses was up 4 million on higher activity-related spending. The EBIT result for the quarter was 56.4 million, up from 41.5 million in the first quarter of 2025. PIR posted a significant improvement in revenues of 111% from the first quarter of 2025, primarily driven by increased demand from security and defence. Gross margin came down 6 percentage points on higher share of high-volume manufacturing, Payroll and operating expenses increased 12.6 million on new hires. The EBIT result was 66.8 million in the quarter, up from 21.8 million in the same period of last year, demonstrating strong cost discipline and scalability with our robotized manufacturing setup. Next, balance sheet and financial position. Property, plant, and equipment, including right to use assets, increased 6.4 million. This was partly driven by investments in machinery equipment, as well as a smaller expansion of the floor capacity at the Rødes factory. Intangible assets rose 5.3 million, explained by R&D investments, partly offset by amortizations. Trade receivables were down 49.4 million in the quarter, following a sequential revenue decline and strong cash collections in the ocean segment. Inventories declined 17.1 million in the quarter, Quarterly fluctuations in the inventory level must be expected given the anticipated growth, short delivery cycle, and what is becoming a more challenging supply market for some electronic components. Net interest-bearing debts stood at 204.2 million at the end of March, a decrease from 364.5 million at the end of 2025, following strong cash flow generation, as well as a depreciating euro impacting the Euro term loan in Norwegian kronor. Our equity ratio was 50% at the quarter end, up from 46% at the end of the fourth quarter on a positive net profit. In the first quarter, we continued to create additional financial flexibility by extending our revolving credit facility to July 27. We also added two one-year extension options to the facility. We also entered into agreement to amend the repayment terms on our term loan in which no repayment is made if the net interest paying debt to EBITDA ratio is below two times. At the end of the quarter, our ratio stood at 0.5 times down from 0.8 at the year end. Our available liquidity measured by cash and undrawn committed credit facilities stood at 921 million. And our financial position creates a strong platform to deliver on our capital allocation framework, including distributing a dividend in May as proposed by the Board of Directors, as well as accelerating growth through acquisitions with the use of our balance sheet. Lastly, cash flow for the quarter. Cash flow from operations was 212.6 million, primarily explained by an EBITDA of 201.8 million, a net decrease in working capital of 52.5 million, and taxes paid of 41.7 million. We invested 56.4 million in the quarter, mainly explained by 35.2 million in R&D investments, and 21.7 million in investments in machinery and equipment. The investment levels for the full year is reiterated, Cash flow from financing activities was 93.7 million in the quarter, primarily explained by repayment of debt and leases. I will then give the floor back to Per-Jurgen, who will give you the outlook section.

Thank you, Birgit Jan. So, looking into the future. So, we started this year with an announcement ambition of delivering revenues in excess of 3 billion Norwegian kroner and with an improved EBIT margin compared to the 22% achieved in 2025. And we today reiterate that based on the outlook we see today, we remain firm at that ambition. Looking into the short-term outlook, we expect oceans to deliver in the range between 210 and 250 million Norwegian kroner in Q2. And oceans is the segment that has the highest degree of seasonality, although over three segments. Usually Q1 is the slowest. Last year, Q1 was a very strong quarter. Q2 is typically quite busy quarter. Q3, a little bit slower again, some holiday season. And Q4 is usually the strongest. So we expect to deliver in the range of $10 to $250 million. Connectivity is... expected to continue to grow based on deliveries on the NSS onboard units. So our guidance for today in connectivity is a range between 225 to 250 million Norwegian kroner. The strong demand from defense and security remains in PIR and we expect based on this and other orders to deliver between 370 and 390 million NOX in the second quarter. That being said, we are, as earlier announced, now in a phase which is the most motivating part being allowed to work in the management team of Norbit. We are framing a new four-year ambition plan and looking very much forward to meet you again in August, where we will lay out these 2030 ambitions. So I think with that, we could go to the Q&A session.