I would like to welcome you all to this session with Nordic Unmanned, which reported Q4 figures today. My name is Tommy Johannessen, and I cover Nordic Unmanned on the equity research side in SpareBank 1 Markets. With me today I have CEO of Nordic Unmanned, Knut Roar Wiig, who will first start off with the presentation of the company, and then we will move over to a Q&A session where you are welcome to ask questions in the chat dialogue box to your right on the GoTo Webinar platform, and then I will ask them at the end. We plan to limit this session to approximately 45 minutes, and we will now start off with the presentation from Knut Roar. Please go ahead. Thank you, Tommy, good morning to you all, and welcome to this live presentation of our Q4 numbers. Our Q4 has been a very strong growth quarter. We have delivered 121% growth since Q4 2019. Now Green Solutions actually was 71% of that revenue in Q4. In 2020, 63% of our revenue were coming from Green Solutions, 75% of our revenue is coming from Drone as a Service activities, and 25% is coming from our system integration activities. We have delivered a very strong quarter, even though a lot of COVID-19 challenges has been around us during the Q4. We have been operating in eight different European countries with eight different regulations when it comes to quarantines and other COVID-19 related matters. We have seen in the end of the quarter that, as expected, the adverse weather conditions gave us some more limitations on the operations and we expect that also to be in the beginning of the Q1 numbers. As you can see from our quarter by quarter numbers, the Q2 numbers are showing the real COVID-19 effect we had on revenue, while the Q3 and Q4 is showing the steadily growth. On the EBITDA side, EBITDA reflects the economy of scale that we are seeing. We had an EBITDA growth of 144% in Q4, and the EBITDA margin landed on 20% in the quarter. The EBITDA margin grew steadily from Q3. We ended the EBITDA in Q4 quarter on NOK 5 million, which is adjusted for our COVID-19 one-off effect of NOK 1.7 million. The COVID-19 one-off effect is related to medical costs for COVID testing, quarantine days for employees, logistical challenges, travel, and also quarantine days, both at the site and on the return back to Norway. We expect the COVID-19 cost, the one-off cost to continue somewhat in Q1 as well. That's why we are stating it. The financial year 2020 has been our breakthrough year in many ways. The revenue has increased 112% year-on-year. We ended the year on NOK 66.1 million in revenue. It has been the first year with a positive EBITDA in the company, and we ended the year on NOK 5.6 million in positive EBITDA. The net profit for the year ended on NOK 1.8 million, and that is also adjusted for COVID-19 cost. We have seen in the quarter and especially in the end of the quarter, some movement in deliveries due to delays related to COVID-19, which has basically moved revenue from Q4 into Q1. The number of employees have grown from Q3, where we were 27 employees up to the 50 employees we are in February 2021. It's been a very active quarter and there have been five main operations that we are highlighting. We have been operating the CAMCOPTER S-100 in two sites, in Denmark with the Danish Maritime Authority, and in France with the French authorities. The French operation happened in the Strait of Calais. Both operations were supported by Schiebel. On the Indago side, we have been operating from our fishery inspection vessel in the Northwest Atlantic fishery zone and the Northeast Atlantic fishery zone, basically on the outside of Canada and Greenland. We have been operating for the Romanian Border Police on board their vessel in the Black Sea on the border of Europe. We have been operating in the Port of Antwerp, supporting the harbor authorities and the harbor police, both in safety, security, and environmental monitoring. All of the three operations with Indago is positively affected by the COVID-19 situation as the drone is creating a distance and the data becomes more relevant, so that we expect the activity to grow even further. The port activity is very interesting to be integrated into a big port like Antwerp, and we see a lot of future opportunities in the port market. The operational footprint in the quarter includes 326 flights, which is a 100% increase from the Q4 number of flights for 2019. 86 of those flights are environmental flights. In the environmental side, we have detected 14 potential SOx violators, which is surprisingly and disappointing 21% of the inspected vessels that we have been looking at in France. We have also been participating in four search and rescue operations during the deployment we did in the Strait of Calais for the French authorities. You can see the image on the side there. It's from a night operation in Denmark, which was the first time we did our emission monitoring operation during night, which is a development of the operation. Below that, you see the Staaker BG-200 with a Green LiDAR payload hanging underneath. On the flight hours side, we see an increase in 2020 as expected. We have an increase of 221% for the year. When you look at the chart here to the right, you will see that both in Q3 and Q4, we were flying more than for the full financial year of 2019. What we also see is that even though we are growing a lot in the flight hours and the revenue per flight hours is stabilizing, we are achieving a good revenue per flight hour. The revenue per flight hour includes the standby rates, the planning, execution, post-processing, and data analysis related to the flight hour flown. That's something we're going to continue to be reporting on for the next quarters. On the Q4 company events, we are highlighting some earlier announced matters. First of all, the contract we signed with the Norwegian Defence Materiel Agency is giving us a positive effect for 2021, both on revenue and EBITDA. It's also a very important contract for us as through the contract, we are getting in compliance with the standard regulations when it comes to quality for being able to deliver to the Norwegian Armed Forces, which we expect to have a positive effect going forward as well for the coming procurements that the Norwegian Armed Forces will have. On the railway data collection robot, we signed our R&D contract with our cooperation with Bane NOR, the Norwegian rail authority, and that contract will continue to develop to this summer. There will be a test flight happening in the first half of 2021, where we will be landing on the rail and driving on the rail with the drone. We conducted the first hydrogen power drone flight in Scandinavia with our Staaker BG-200 fuel cell drone. The drone was done in normal airspace, so it was not a specific test site. To be able to integrate the technology into the regular airspace was an important part of the flight. There's no use in having a closed test area for such a technology. We need to be able to use it in open airspace as well. We did the listing on the 15th of December on Euronext Growth Oslo, and we raised NOK 99 million at the same time. We started the acquisition process of our fleet of CAMCOPTERs as earlier communicated to the market. The first two CAMCOPTERs was added to the fleet in beginning of January. We have a solid financial foundation for the growth that we are expecting. During the quarter, we refinanced our loan facilities and added the new credit line. We had a cash positive result from operations of NOK 9.6 million in the quarter. Our cash position at the end of the year was NOK 53 million, with NOK 20 million of unused credit line. We have now more than 3,000 shareholders, and the number of non-Norwegian shareholders are increasing as well. We have seen a very positive development in our share price. On the contract side, we have increased our contract backlog during Q4. It's now NOK 350 million, so it's an increase of NOK 41 million, and we had a use of NOK 21 million. The new contract backlog is coming from the earlier mentioned framework contract with Norwegian Armed Forces or Ministry of Defence. There's a framework contract for the Dutch Ministry of Defence. The mentioned R&D contract with Bane NOR. Bane NOR did a short-term extension of the existing service contract with them. That service contract will come out on a rebid. We expect this first half of 2021. We did start selling Staaker-related products to a blue-chip OEM. We signed a framework contract with a global mobile network provider. We announced today that the work on that contract has just started this week. When it comes to the market and outlook, we are very focused on our CRM pipeline. As I've said before, there are very few good data on the actual size of this market. We see a big growth. For us, we need to be very specific on what is the identified sales that we really want to target. That's why the CRM pipeline is very important to us. We now have identified sales per pipeline in Europe of NOK 7.1 billion. That pipeline has increased 9.2% from Q3 to Q4. The historical win rate has increased from 30% to 32%, and the CRM pipeline do not include projects with ongoing negotiations or unannounced wins. We've also moved quite a bit of the prospect side of the pipeline down to qualified lead, and the size of the RFQ side in the pipeline has increased also quite a lot. It's a more mature CRM pipeline than before. On the outlook side for 2021, on the growth of the revenue, we are expecting a significant increase in the growth rate in 2021 from what we have seen in 2020. Even though we had a huge growth in 2020, we expect that growth rate to increase. On the EBITDA level, we expect 2021 to be in line with Adjusted EBITDA margin for the Q4 in 2020. We are in a ramp-up phase of our organization and are targeting to be 90 employees by the end of 2021. We have identified several M&A opportunities in Europe, and we expect to mature that side more in 2021. The fleet value is increasing according to the earlier communicated plan, and we expect the fleet value to triple in 2021. The medium-term growth, we are reconfirming that we have ambitions of becoming a billion NOK company in revenue. On the contractual trigger side, we have decided to communicate on a quarterly basis what we expect to be contractual triggers for the next two quarters. What we are highlighting here is a more than EUR 300 million contractual trigger side divided into five different opportunities. We announced yesterday our MOU with Schiebel Aircraft, and we are currently negotiating a potential subcontract for them on a emission monitoring contract that they have. We have been bidding together with Schiebel on a contract called OP27 for the European Maritime Safety Agency on the Lot 2, which is maritime surveillance based on our vessel. We did communicate to the market our negotiation we were in for our environmental contract, and we still expect the answer to be announced before the end of Q1 on that contract. We are in more than 10 countries in Europe in commercial processes on system deliveries for both the Indago product and the Staaker product. Finally, we are in the process of Map the Gap, the Defence Science and Technology Laboratory program, which we are delivering the first phase of now, and the next phase is out in the market. When we look at the revenue per country in Q4, we are spread out through the market. We are a European company and our market is Europe, and we are very focused on being present in many European countries. In Q4, the largest country generating revenue was France with 30%, then Denmark with 15%, and Norway now only accounts for 11% of our total revenue in the quarter. We have earlier communicated that in order to grow in the speed we want to grow, we do need a strong presence across Europe, not only in Norway, and we are very satisfied with the development on this side. When we look at the business segments and the highlights, we are seeing a big activity in the Green Solutions. It's 71% of the revenue in the quarter. We monitored 136 vessels in Q4 to partner for search and rescue operations to oil spill exercises. We were 24/7 standby on eight oil spill response vessels across European ports. The Indago side was driving the Defense and Security business segment with deliveries and orders across Europe. The digitalization side, we announced today the global mobile network provider contract which we have started. We did a new sort of inspection, doing everything 100% live on bridge inspection for Bane NOR. When it's home office, we also need to be able to adapt to the new customer needs, which we do. We did our successful Green LiDAR survey, and Green LiDAR gives us digital terrain models in shallow water. Basically, we are extending what we can do with LiDAR through this integration. On the logistical and robotization side, the framework contract with Bane NOR was short-term extended. We secured and started the work on a feasibility study for Shell and Sonardyne, using our Staaker BG-200 as a basis for the feasibility study, which includes studying on how effective hydrophones hanging under the drone could be used in pinging seabed sensors and collecting data from those. The CAMCOPTER S-100 is essentially now our drone fleet. We are investing heavily and will continue to invest heavily. We will be flying them a lot this year. The emission reduction of 98%, this is crucial part of our focus on this. We are expecting a revenue per system of NOK 20 million-NOK 25 million at a 50% utilization of the system. There is an upside there, but that's the utilization we are aiming for so far. On the innovation side, we're going to highlight innovations in every quarterly report, and in this report, we are highlighting the Staaker powered by hydrogen. The successful flight was done in December, and the flight was done following a project that has lasted since 2018. The interesting part for us has been all the time to see how effective the fuel cell can be on a drone, and it more than doubles the endurance of a normal flight. It does so with still low emissions. It has a very low noise level and a much lower both procurement cost, but also a much lower operational cost than other high-endurance options that the market could see. It's a very interesting program that we have. We are expecting to have a revenue effect of this innovation during 2021 and forward. Okay. We are a Drone as a Service driven company, and we're going to show you the effect of using drones as well. If the technology is with us now, we're going to do a live drone flight from outside the office. Let's see if we manage to get this done. Many of our customers, they are very interested in the value that live data are providing. Live data is giving a lot more value than recorded old data. The possibility of distribute live data is very important to us. Okay, so we see the drone flying outside our office building here in Sandnes, and it's streaming live, and we can distribute this data to anyone and record it or store it or handle it in the way that the customer would like us to handle it. To be able to do that day and night adds a lot of value for many of our customers, either as we do it as a service or some of our customers would like to do it themselves, obviously, but that's a crucial part. We see the view of the drone sensor as it's flying over the icy fjord here in Norway this morning. The flight time for this specific flight could be up to 45 minutes, We could fly up to six kilometers out on this fjord. Okay, here we have our Staaker BG-200 drone with the fuel cell attached to the drone. As you can see, the fuel cell consists of actually two fuel cells. Each of them is 1,000 watts. It's got the hydrogen tank underneath the drone. For us, this is additional energy possibility on an existing product, more than a separate product itself. For customers who want to have the longer flight time capability and who want to have the possibilities that the hydrogen fuel cell energy option gives, we could add this on to a kit, to their existing drone. Okay. Tommy, I think I'll go back to you then. Perfect. Thank you for your presentation, Knut Roar. As a reminder, the audience is welcome to ask questions if you have any, and you can type them in on the chat dialogue box to your right. We will start off with our first question, which has come in, which relates to the risk of drones crashing and the potential impact of revenues. How big of a risk is this? We look at the risk in different ways. We have a ground risk, and we have our air risk. The risk of the drone crashing, there's always a risk. Obviously, we are looking into making that risk as little as possible. We have a fleet of drones, and if we have a crash of drones, we have alternative drones. The main risk on the revenue side would be the effect of a crash which is grounding or a long-term grounding by the civil aviation authorities. That's a risk we are mitigating as good as we can. This industry has also been a lot better the last couple of years to mitigate that risk. We are seeing more and more stable operations in our industry and in our company. The technology has matured a lot the last couple of years. Our next question relates to Drone as a Service versus system integration activities. How do you consider the development of these two areas, and what's the difference between the areas? Well, the Drone as a Service area is developing very positively, as we saw from the numbers. It's also an area that generates revenue on a daily basis. We fly every day and generate revenue every day. We see Drone as a Service being very important going forward, as it is now. The system integration side will also increase and probably increase more than the Drone as a Service. The split between them will probably be 60/40, as we have been earlier this year. The system integration side is involving the large governmental contracts where Drone as a Service could be part of that in the early phase, so supporting the customer. There is a combination of those two is what we believe in. We have a flexibility in our business model to support in system integration if needs be. In terms of your guided double-digit growth going forward, in which markets do you expect this growth to come? What's the difference between the expected market growth in your four core segments? Generally, the growth expectation is based on Europe. We have nothing in our numbers that we need to do outside Europe to achieve the numbers. That doesn't mean that we don't believe in the market outside Europe, but we have had a strict focus on Europe so far. In the business segments, we are expecting both digitalization and logistics and robotization to grow to higher part of the revenue. Defense and security with Green Solutions being not as high as it has been in this quarter, probably being reduced slightly as the percentage of the revenue. Right. Considering COVID-19 costs, which you had now in the Q4, to what degree do you expect similar costs in Q1 and Q2 for 2021? Yeah, we expect that the cost level in at least Q1 will be more or less the same. We are seeing a bit less quarantines when we are coming into operations, but we still have quarantines coming back. The logistical side is sometimes challenging, moving people and equipment around. For Q1, there will definitely be a COVID-19 cost, but we see a reduction in that into Q2. Also on the planning side, the rapid changes are obviously creating a cost for everybody, but we are keeping the production more or less unaffected, even though it is adding a bit more cost. Great. We have a question regarding the contract structure. Are frame agreements included in your backlog? Yes, they are. Now we have a question of your targets. When you reach a target of NOK 1 billion in revenues medium-term, what do you foresee EBITDA margin to be at that point? That's a good question. We haven't done a detailed analysis of that. We are expecting that globally this competition in our market will increase after some years. We think we have a first-mover advantage for time being. I don't think I will give a guidance on what the EBITDA margin would be on that target. When we have done that analysis, we could revisit that with a more clearer guidance. Yes. Then we have a question on M&A. Can you say something about the size of the deals you are looking at in Europe? Also, can you explain how you look at investments going forward? On the M&A side, when we did the IPO, we talked briefly about M&A and our expectations of this market to consolidate. We have seen a bigger interest than what we expected over the last couple of months after we did the IPO. There are more than us in this market that is seeing that the consolidation will happen, and I think it's going to happen quicker than what we initially expected. The size of the M&As we're looking at is less than NOK 100 million and more than NOK 10 million. It's relatively small M&As we are looking at, which is also this market. There are very few large players, but there are quite a lot of medium-sized companies that is either having good technology or have a distribution, have operations. We're looking at it from different verticals in our business segments. Great. Now we have a question on the competitive landscape. How does this look when you bid on larger contracts? Well, we see more or less the same competitive landscape as before. The large contracts have a few competitors, not very many. It's not changed. There hasn't been any consolidation that we've seen. We also see that the competitors are normally more than one in a bit. The market still needs to find together to be able to bid on large contracts as very few has in-house capacity to be able to handle one large contract. No major changes the last couple of months. Great. We have a question. Are you operating in fixed wing contracts? We have currently not offered in fixed wing contracts, but we are working on a potential fixed wing contract for this quarter Okay. Status of the EMSA contract worth NOK 300 million. What's the status there? The status on the EMSA contract is that we are negotiating with Schiebel who is involved in that contract. We have a different approach than before to that contract. Great. Do you see an upside to the business as fallout from COVID-19 and the move to remote operations by clients? We see an upside in the fact that the implementation of the technology is happening quicker, and the understanding of the possibilities the technology is giving is coming quicker. The long-term effect of this is that the growth in the market could come quicker than what we expected. We are not involved in any COVID-19 related matters directly. Like vaccine logistics and stuff like that, we think that's a short-term thing that is not that interesting. We think that many are forced to be using the technology differently than before, and that has a positive effect as we are seeing. Why were revenues per flight hours so high in Q1 and have been falling ever since? The way we are reporting this is that we are taking all flight-related income, dividing it on the number of flight hours. That means on the contracts where we have a standby rate, a leasing contract, we will be dividing that on the flight hours. If you have very few flight hours, the revenue per flight hour in Q1 was very high as a result of that. It's not before you scale up the operation that you're actually looking at a number that you can compare as you're seeing in Q3 and Q4. What top three business risks have you identified for Q1 and Q2, and what mitigations are in place for those risks? The business risk is going back to your initial question. Our revenue is driven by us being able to operate and deliver. A crash or a technical issue with the systems is obviously a big issue for us. Part of the mitigation is to have enough equipment, which we have. Also training of employees, both on the operational side and on the technical side is a big part of the mitigation that we are doing. How do you see integrating larger systems than the CAMCOPTER S-100 into your portfolio for requirements outside of the S-100 capabilities? Well, I see that as a quite natural development for the company. We are driven by customer needs and to solve the problems our customer is having. To look into larger systems would be fixed wing systems. That will be a natural development for us as a company, provided that our customers that is going in that direction. That's a positive development for us to go in that direction. Our next question is, in order to grow in this huge market, how do you market yourself? Do you have plans to increase marketing significantly going forward? Normally in this market, a lot of the marketing has been done in trade shows, meeting governmental representatives, and so on. That has been kind of challenging in the COVID-19 situation. We strongly believe in delivering well to our customers and to solve their problems and to keep them happy as a big part of our marketing. We will be more active on the commercial side, which gives us more capability on adding more on contracts by offering more tenders than we have done so far. We are selling to very large customers, and we know who we are targeting, so we don't have a big need of a massive marketing site. Okay, then, we have a question on, have you analyzed the potential for cargo deliveries in Norway? We have looked into initially the cargo delivery market in Norway. We do believe in the cargo delivery market in Norway, but it's the critical cargo that we are focused on. The cargo that the drone is carrying should be critical for a governmental or a big corporation, meaning it has to have a purpose, and there needs to be a willingness to pay for it. We do not believe in business to consumer cargo delivery for UAVs. We see Norway as a quite well-positioned country for logistical flights with drones because of the dense population and the oil and gas industry where we can fly over water and easily get flight permits to fly. Now we have a question. Are you also thinking about food delivery or delivery to retail customers? No. We do not believe the willingness to pay for food delivery at this stage as we don't see a market there. No. Are you able to insure the CAMCOPTERs, and how do you meet the financial risk of a crashing at the search and rescue machine itself? Digging a little bit into your insurance policies there. Yes, we are. In fact, I guess the insurance scheme we have on the CAMCOPTER is one of the few large commercial drone insurance policies, and it's insured in a similar way as a large manned aircraft with several involved parties, but there's a commercial insurance on the aircraft. How are you approaching the matter of data security for your products and services? Data security is of high concern, both the encryption on the data link that we use on the air vehicles. We use state-of-the-art encryption, and the rest of the flow of data is also protected, and it's an important part of what we're doing. We collect critical data that we need to protect. Now we have a question on the opportunities for further international growth outside of Europe. How do you see this? Well, as I said on our expectations for growth, it's all based on Europe. We're not blind to see what's going on outside Europe, but we are very committed on delivering on the growth targets that we have promised to deliver on. Provided that it doesn't put our European growth at risk, it's something that we would be open for in the future. We have now come to the end of our questions from the audience. A lot of good questions have come in. Thank you for that. If there's no further question, we can pause for just a little bit to see if there's any follow-up question from the audience. Here it comes in, a lot of more questions. Actually, we don't have time to address all of them. We can start off with the one that came now. Can you say anything on the timing of your backlog? Do you have any visibility on when the customer will and should make hold-ups? The investor is asking, "What I'm trying to see is the risk of the backlog because of -- Yeah. The timing, I think we are publishing a bit on that in the presentation when this backlog is falling in the future. I think it's up to four years or longer, the last part of the backlog. The timing is driven by the customer demand, which we are currently seeing is high. I think you need to look in the presentation to see the expectations we have. I think it's in slide 11. Yeah. There's a question, as a supplier to Nordics, for many years, Nordics' appetite to sign long-term contracts has decreased from years to months. With the confidence you have displayed this morning, do you see that changing so that suppliers can mirror your confidence and also invest in the Nordics? The time it takes in the market, I'm not sure if I understand the question 100% correctly, but the sales process is very different for different clients in our pipeline of customers. Some of them, yes, it's taking a very long time. We need to offset that by finding revenue that we can create every day. That's why we like the balance of being Drone as a Service provider and a system integrator. System integrator contracts could give you a very long contract, but it takes a long time to land the contract. The sales cycle, it's something we are working on offsetting those long sales cycles. Perfect. Now we have come to the end of our list. Thank you again to all for posing all your questions. Very interesting topics you have addressed. Thank you for your presentation, Knut Roar. Do you want to conclude with any remarks or summary at the end? Thank you for the interest, for the investors participating in this presentation. We are looking forward to a very exciting 2021. Thank you, Knut Roar. Thank you all. Have a great day.