Good morning. Welcome to the Q4 report presentation here from the Nordic Unmanned HQ in Sandnes, Norway. I'm Knut Roar Wiig, and I'm CEO of the company. I'll be presenting for you today. First of all, a bit of our highlights of the quarter. Looking on the revenue side, we are growing from last year with 48% on a quarter-to-quarter basis, ending the quarter at EUR 37 million. The annual side, we grew with 79% from last year, ending the year at EUR 16.5 million. We now have a EUR 89 million contract backlog that is now getting more and more well distributed between flight services and our own products. We did a NOK 8 million private placement in December and the following February subsequent offering. We're looking at the ops side. We had in Q4 64 surveillance missions in the maritime environment. We did 124 vessel measurements. The flight hour increase was 43%, and that's all driving also the revenue side. As you can see, there is a link between those. All in all, in 2022, we flew 270,000 km, and that's almost 7x around the globe in distance. Our business is driven by our NewTech side with our products, and with Nordun, our flight services and data collection side. We're gonna get more into those details in the presentation. For this year, our focus is on execution and profitability. We have summed up some of these areas here that are important for us. On the OP/46 contract, we are planning with three simultaneous deployments, and the main revenue effect from this contract will be in Q2 and Q3. We are ramping up starting in Q1, and there will be a tape production also in Q4. On the OP/5 contract, we are starting the planning of operation and the planning of fleet upgrades, data integration, and other elements. We will have a small financial effect in this year for that contract, but the main part of it will happen from 2024 and onwards. On the Mikado II contract, it's absolutely crucial delivery for us, and we are on track with that. The main delivery will happen in Q2, and the main revenue effect will be in Q2 and Q4. On the TIQUILA contract with Lockheed Martin UK for the sensor delivery, also happening out of AirRobot down in Germany, the main revenue effect will be in Q1, Q3, and Q4 with deliveries happening around mid-year. On the profitability side, we will deliver high-value drone products this year, and we will continue to deliver a very good OP/5 ops with a better cost base. We have been leaning, and will continue to lean the organization to adapt to our contractual backlog and our projections. That's gonna improve our profitability throughout the year. We have two main businesses, is Nordun and NewTech, so our flight service operations. We are focusing more and more our product portfolio towards AirRobot and DroneMatrix, and especially towards the military and the police side, for AirRobot. On the asset adjustment side, we have identified non-core assets in our balance sheet, and we are working on a change of the balance sheet, so basically sales of non-core assets. We are going into a more opportunistic fleet review as we progress during the year. Looking at the financial side, we are on track to achieve profitability from operations as we have stated in Q3, that's the way we are moving, and also that will be reducing our debt burden as well. Looking at the quarter, as I said, we are ended up at EUR 3.7 million revenue. This is a growth from last year. On the EBITDA level, we're still running with negative EBITDA, represented with -EUR 2.4. On the EBITDA margin, we see a clear improvement from last Q4 on that side. We are on the right track. For the full year, we ended up at EUR 16.5 million on the revenue side, and with a negative EBITDA of EUR 8.6. Again, we see a improvement on the negative side, even though we're definitely not satisfied with the negative number we are seeing. Growth in quarter, growth in the year, 79%. This is significant growth in our industry, given the numbers we are running now. We have a loss that is also driven by the. It's a low season for us, and we are in the ramp-up of this year, within manufacturing activity, and a much higher flight production activity for this year. We have done impairments of the balance sheet, and we have 2.3 of impairments where we have one-off costs and inventory obsoletes of around EUR 0.7 million. And the rest is write-downs of our Staaker site that we closed the development office in Oslo during Q4 as we announced in Q3 as part of our cost saving program. Finally, the board has decided to take out the deferred tax asset of our balance sheet. So that means there is a reduction on that side as well. Obviously the deferred tax will be carried forward, but then outside the balance sheet and will be used when the company is taxable. Looking at our liquidity and solidity, we have liquidity of EUR 6.7 million, and we have done a quite big improvement in the short-term debt side of the company. We are now at the ratio of 49%. We are working actively on the non-core, non-strategic asset sales, and that will bring us in the range of EUR 3 million-EUR 10 million in effect. We are expecting this to be happening in the period of Q2 to Q4 this year. We have looked differently in our at our investment program. We are pushing the investments to be more timely when we need the investment. More on a just-in-time manner. Looking at the core business here, Nordun is definitely core. As we reported just before Christmas, the OP/5 contract got signed, so that's the EUR 20.5 million contract. That's adding nicely to our future backlog and gives us also a fleet planning possibility between several contracts. We did have a increase in operations even though the Q4 is normally our, one of our low periods. It was a 43% increase in operation for the quarter. We doubled the activity for the full year, ending up around 3,000 flight hours, being on each final site flight hours for the year. We covered a vast distance when we were flying. Bear in mind that this distance, when we fly, we are collecting up to four different data sets. The amount of data that we have collected is quite enormous. On the OP/5 contract, that scales out of the OP/46 contract. We have started with the first work on the contract, which is the data integration into the European RPAS data centre or drone data centre. There is a big similarity between the contracts. We are using the same crew, and we're using the same fleet in between the two contracts. With the OP/5 contract having a different configuration, which is an upgrade for us to our existing fleet. This year we have accepted a bigger usage of the OP/46 as a result of the OP/5 award. We have, we're gonna run three deployments instead of the contractual two deployments that we have currently have in the contract. First, looking back to what we did last year on Nordun, you can see down there the different countries and where we have been flying. For those that have been following us, this should be known. In reality, as you can see, it's, we still have a seasonality, where the first quarter is the lowest quarter and the fourth quarter is the second lowest quarter. We have been flying quite long deployments throughout Europe, as before. Having that in mind, going into the 2023 planned operations. Our flight crew has had a very busy January and February, basically doing retraining. We are cross-training between pilots and technicians. We are also giving those that are only flying CAMCOPTERs training on the Aerosonde as well. We have one crew base that can fly the Aerosonde systems. We will start the operations in mid-March is the plan now. That's a big driver for us when we start from a revenue point of view. And then we have planned for three deployments on the OP/46 contract this year. And you can see our planned lifetime of these deployments. If the deployment get delayed in startup, that means that this blue line get moved to the right in our planning. It affects our when we start, but not necessarily the utilization. Then on the CAMCOPTER, we have talked about Brazil in the past, and we are maturing the Brazil opportunity together with our local partner through our joint venture, Omni On Land. We are planning for that. Positive in the developments. Let's see on that side. We also have some other opportunities on the CAMCOPTER that we are planning for in the end of the year. On the OP1 contract with EMSA, we are planning for long deployments. These are permanent deployments on vessels, and this comes on top of the 12 vessels that we have equipment on board and that we support on a 24/7 standby from our office. We have a new line here, the last two lines here, these are planned drone-in-a-box operations, so remote operations from our operational control center, starting with Belgium and Port of Antwerp. We are hopeful about the Norwegian operation as well. On the NUMar side, we had a revenue of EUR 0.4 million in the quarter. It's mainly driven by Ecoxy, and Ecoxy had a very good year last year. Did a great job in Ecoxy, and they ended up with an annual turnover of NOK 80 million, which was an increase of 34%, leaving them with EBITDA margin of 28%. We continue with our significant ESG contribution. We are both doing a lot of general maritime surveillance and the emission monitoring that we have been doing as well. tion is now 175x if you should do a similar job with a manned asset. We will be continued to be tracking this and improving this side as well. On the NewTech side, we landed a flagship contract in the end of the quarter. Looking at the revenue side, we had a nice increase in revenue with 89%, leaving us with a positive EBITDA and a positive gross profit. Even though we had, when we were planning the year, we had a expectation of a higher revenue, which is some technicality on how we account for the income on the Mikado contract. Some of the revenue that we expected to be in Q4 will happen in Q1 instead, it's a shift of quarters, basically. If you look into the TIQUILA contract, it's a significant contract for us and for AirRobot. It's a significant contract for our Nordic Unmanned UK operations as well. We have sold the first AR100-H, so the core product, for an AirRobot to police forces. We have a coax patent revenue in the quarter of EUR 350,000 that we have also secured. On DroneMatrix, the completion of the manufacturing side is done. Basically, we are doing contract manufacturing, which allows us to scale quickly, and also reduce risk on the manufacturing side. The installment of four out of six systems at Port of Antwerp was done by the end of the quarter. Circling back to the TIQUILA contract, this contract on its own is a contract between the UK MOD and Lockheed Martin UK. It's one of the largest drone contracts ever awarded in Europe. Lockheed Martin is the prime of the contract. We are a Tier 1 supplier to Lockheed Martin in the contract. The initial scope for us is the supply and maintenance and lifecycle support of the payload that you see under here behind the other sensor. That sensor is based on the AirRobot's AR100-H sensor system today. On its own, it's a very, very interesting opportunity for us for 2023, where we could see orders of exceeding EUR 5 million. It's also a very long contract where we are committing to supplying more. to doing having the maintenance and having the spare parts available for this in a commercial model. So this contract will be scaling up over the year. It also creates another huge opportunity for us as this is integration with the Lockheed Martin Indago 4 platform globally, which means that we will have access to also other Lockheed Martin Indago customers in Europe or in the U.S. or elsewhere in the world as this integration matures. That will be outside of this contract and directly with the other contract we have with Lockheed Martin as a value-added reseller and partner for them. On the Mikado II side, the Bundeswehr contract with AirRobot, our expectations, it's quite important. It's a 10-year contract, and the initial delivery is 145 systems. We have been working on this contract for some time now since we got the award last year. The first batch of drones, they will be delivered in Q2, which is a huge milestone for us, both in the contract and also for AirRobot. The second batch will be delivered at the end of the year. We are on track on the delivery here. There's nothing, there's nothing that we see that is pushing this, but it's a major milestone for us. On the opportunity side, what comes out of this is a Military Airworthiness Certificate for the system itself. We haven't seen any other producer that has a similar certificate. It's moving the industry into a new phase where we have a Military Airworthiness Certificate as a air vehicle. It's a different phase which also means that we foresee that future customers in other NATO countries will be asking for their systems to come with certification as well. Our German Military Certificate of Airworthiness will be used by us elsewhere when we have achieved that. We also see a increase in demand from police and other customers following the award, and following that, the first delivery of this large batch is getting close. On the TIQUILA contract side, that was a big win for our Lockheed Martin UK office. The office, the size of the office is scaling up as a result of that. Some of the support will be done locally in the U.K. as well. We see the U.K. as a very interesting market for us following the contract. On the, on the global side, the revenue in the quarter is mainly, or actually, it's mainly driven by the Lockheed Martin sales, and sales to the Swedish and Norwegian police. Okay. If we move into the backlog side, we now operate with a backlog of EUR 89 million. The backlog is we're now starting to report backlog as a separation between the Novo and NewTech side. We can see we now have backlog is stretching into all the way into 2032. Our contracts are getting longer, and bigger. We have a lot of backlog to be working on. The OP/5 is a good example of that, as we are putting that into 2024 and onwards, and we're not have any backlog usage of that in 2023 the way we are planning it. We also, as we increase the backlog, it also means that we are going from a historic backlog margin based on historic contracts into a new average backlog margin, where the new average is higher, as the new contracts that are coming in are has a higher margin than the historic contracts that we have put into the backlog. A significant backlog with 34% is NewTech, and 66% is Novo. Looking at the potential award side, as we have been reporting over some time, we are trying to give you a feeling of what's going on in the market and what to be expecting. We are working on actually quite a bit of industrial applications connected with Drone-in-a-Box solutions. We see drone-in-a-box becoming all of a sudden a industrial product as it's mature, it's available, you can fly it. The regulation is in place in Europe, but we have seen the last month that the regulation is actually in place in the U.S. as well, based on FAA feedbacks. It's a phase of scaling this, and we are in the permanent drone-in-a-box industry with not that many competitors, but we have a lot of interest and the awards that DroneMatrix have been achieving lately is a result of that. We are actively chasing the first major deal in the U.S., and we are quite hopeful and optimistic about that as well. We are seeing a continuous and increased interest in maritime surveillance. We talked about it before. We were based on the new security situation in Europe. We were kind of optimistic very early that this would influence our market. It has not happened as quickly as we expected, but we do see this changing, even not as quick as we hoped for back in Q2 last year. Definitely a very strong momentum in what we are bidding for there. Looking at the summary in for Q4, we signed two very important flagship contracts for us. That's giving us long-term development of the backlog and is cementing the market position we have within both the tech and the northern side. The revenue is continued to be increasing and driven in the quarter by flight hours, not by new tech. We will see that changing in this year. The operating losses was still there. It was a low season for flight service, and with limited investing in the new tech side. We have now a high-quality backlog, and that ensures us predictability of our cash flow for several years to come. The product business will be at least as important as the service business as we're going forward. For Q4 this year, we should see a very different split than what we saw in Q4 in 2022. If we look at our guiding and financial targets for 2023, on the revenue side, we are giving a guidance that we target to exceed EUR 30 million in revenues. This has 100% visibility based on our current contracts split between the northern and new tech. The way we should read this is, we have taken our backlog and put in here in the model as you see it. On the profitability side, we are targeting an EBITDA margin of approximately 10% for the full year, and with accumulated break even on EBITDA level from Q2. Which means we will have a negative EBITDA in Q1 and a positive in Q2, and then we will be break even accumulated and positive EBITDA from there on this guiding on the profitability. On the cash flow side, we are targeting to be positive from operations for the full year, and we are accumulated to be break even on cash flow from operational side in Q2 for this year. We have given you guidance and updates before, so we have added which we haven't met. We all have added a new slide just to highlight what could go wrong and what would be major things that could go wrong that would affect our availability to achieve the targets that we have provided. Some of these are milestones. The first two are milestone-based. This is a big milestone for us to do the first delivery in Q2. So, so that's one of the main risks, that we have identified. We are on track, and we are comfortable, but it's still in our risk matrix, as it's a significant milestone. Same for, the HEIMDALL first delivery in Q2. W e are also on track there. We are currently securing components and and we are on track with the, with the process and the timeline. Um, the fluctuation in EMSA contract call-offs, in the second half of the year, could affect the-- our usage of the contract. So meaning, it's framework contracts, and the call-offs or additional call-offs, or not additional call-offs, all of that are affecting our, our revenue base, from the usage of the contracts. That's, that's part of our risk matrix as well. Obviously, we are running into three parallel deployments, and we are planning for 6,000 flight hours for this year, which is a doubling of the amount of flight hours. So there is a operational risk involved in that, even though we believe we are very well planned, and we have invested a lot of time and resources in the training of our great crew, in the first quarter to make it to de-risk that increase in deployments and flight hours. Finally, we are in the phase of industrial rollout of the drone-in-a-box system, including the service. Basically means the operation of the system. This is the first time in the drone industry that we are reaching that milestone. It's a general risk based on our experience in the past that every time we do something new, something new pops up. Even though it's not a significant part of our planning for this year, that is related to that, it's the risk with the most unknowns we have identified. Okay. That was the presentation. We have, we are open for questions here now. Feel free to give me your questions, and I'll try to answer them as best as possible. Okay, yeah. We'll see the first question that's come in here. I can translate it to Norwegian. Do Nordic Unmanned have a contract for Indago for Norwegian and Swedish police? Yes. Yes. No. Okay. We have a contract with the Norwegian-Swedish police that is related to our indoor drone. That's our framework contract. Basically our contract where they can call off anytime. We do have a contract with Lockheed Martin to be a reseller for Indago in Norway and Sweden, selling it to the police or the military. Thank you. Which non-core assets do you intend to sell, and will you incur a loss compared to your acquisition costs? Can you say anything about this? On the list of non-core assets, we have as you saw in our fleet planning, we are planning to increase over time the fleet of Textron Aerosondes and decrease the fleet of Schiebel CAMCOPTERs. Schiebel CAMCOPTER is on that list. At least one system, could be two system. That's yet to be seen. That's also driven by the market activity. We have some other assets as well, that we've put on the list, but we do not think and have not planned with, and that's why we haven't put it in the balance sheet either, that we will incur a loss compared to the booked value of these assets. Okay. Thank you. If you're able, can you say anything about the current cash, situation? As you can see from the report, we are reporting on the cash situation. We are also giving our guidance on that we're gonna be cash breakeven accumulated in Q2. So that's basically the planning that we have had for some time now, and that's what we are working on. Can you say anything about the 2024 outlook? Do you have any worst or best case scenarios, assuming 2023 goes as planned with NOK 30 million revenue and 10% profitability? I don't think our industry has, or for us, for Nordic Unmanned, we have a strong backlog actually for 2024 as well. Historically, we have been finding business as we go, so we don't, we don't think that we will have a growth issue for 2024. To be precise on 2024, we have decided not to be precise. On the profit side, when we are giving a guidance of around the 10% for 2023, it means that and being accumulated breakeven by the summer, it means that our second half is a lot stronger than the first half. We are entering into 2024, which means we will be entering with a much stronger profitability in our underlying business, and also a lower cost base, than when we entered into 2023. One more question if you can answer this one. Do you believe that the sufficient funds can be raised through the sales of assets to avoid new share issue in the short term? Yeah. We don't have any plans of any share issue in the short term. We are working on our plan that we have told you guys now. Do you have any other questions? You can put it in the chat. Do you have any other questions you want to, or any other topics you want to cover as well? Well, I think in general, we see a industry that is moving towards everybody understands that we need to become profitable in our industry. That's the push in the industry. It means less investments in development, more focus on current products, and more focus on current services. That this will also lead to consolidation in our industry. We will see that happening throughout 2023 in general. That's a general trend that we should be looking for. One more question popped in here as well. Do you have any actions planned or have you implemented any actions to take in, to limit the losses during the low seasons during the year? Yeah. For this year, at the low season, it's, as I said, we have two low seasons. We got Q1, and we've got Q4. For this year, we are using Q1 to cross-train our crew on the Aerosonde and start to build up that side of the operation. The value of the training that we are contributing to our organization is booked as a cost, so it gives us a loss as well. Yes, we are looking into how to add more business in the low seasons, hence our interest in Brazil. That's one of the areas where we are working on that. If you look at the overall business, it's only the newborn business that has seasonalities. On the AirRobot side, we see a stable growth, quarter by quarter, in our planning for this year. It's also a balance between the two business units, in our action to limit the effect of the low season, as we progress. Another probably a bit, shorter question. When do you intend to be on the main list of Oslo Børs? Yes, we put in the in the stock announcement today. We haven't put a specific time to it. We need to show U.S. investors and the general market that we are delivering on our plan for the next quarters. Basically that we become profitable. That will mean that we are in a shape to go on the main list. We have not given a specific time for it, but it's all driven about showing that we will deliver to the market that is the main important thing for us. Do you have any strategic plans cooperating with other companies, for example, the defense industry, or do you have any strategic updates you can give? No, we will come back later in the year with a strategic update. We have a strategy process that is going on in Q1 and mainly in Q2. We will most probably give you an update on the outcome of that in our Q1 report for that. In general, we are well aware that in an industry where there are actually zero very large players, there are some medium players like ourselves, and then a lot of very small ones. Cooperating is a very important part of what we do. There are very different ways of doing that. With the contract in the U.K., it's very good example of how we can cooperate with larger defense companies and what role a relative small company like ourselves can actually play in large contracts for these big defense companies. It's an ecosystem of cooperation. And cooperation is very, very important for us and will continue to be so. A bit more, financial question here again. Will you use the overdraft to cover cash burn in Q1, or what are your thoughts about this? Yeah. The purpose of the overdraft is to have it available when we need it. It's available for us to use. Another question here, a bit on the service side, and I'll read this how I, how I think it is supposed to be. Is there any chance for any additional income for the service contracts that you are doing in 2023? Is additional service or upgrading drones a big part of the contracts, or is it just played as it is received in the backlog? Yeah, that's actually two questions. If you look at on the Nordun side, yes, there could be additional work that could happen within the existing contracts, which basically means calling off more of the existing contracts. Obviously, we are hoping to receive more contracts as well that will affect the low season side of this. On the product side, we have maintenance contracts with Bundeswehr, which is running week by week based on their needs. There could be upgrades that could happen there as well. It's more on a day-to-day basis. Major upgrades in the contractual structure would be new contracts in reality. Thank you. A bit more on the organizational side of it. Can you give an update about the top management of how the team has developed during the past year in terms of structure, competence added and development in the team as it is not mentioned in this or the recent presentations? Yeah. On the group level, we are, we have the head office here in Sandnes, but we are running a very from a geographical point of view, a big business. We are supporting AirRobot down in Germany. Currently the managing director of AirRobot is run from Sandnes. We are supporting DroneMatrix and the buildup of DroneMatrix also here from Sandnes and the team here. On the operational side, we are supporting our operational teams when they are out in the field. All of that happens here from Sandnes, from a management side. The actual operation does not happen here. It happens throughout Europe as we are describing. We have our group support functions running here. But we are trying to be a support function, not a controlling function. Thank you. I think we are towards the end of the questions. I think it's one more, around the sales of the non of the assets. What is the risk around those sales, and what is the process behind those sales? Well, the risk is obviously that you can't sell it. That's the main risk, yeah. Yes, there is a good process, and there are good progress, and we are on our line, when it comes to expectations of the progress as well. It's an ongoing process that we have. Okay. I don't see any more questions. If there are any more questions, you can send them to ir@nordicunmanned.com after the presentation, and we will give you an answer on there. Okay. Thank you for listening, and have a great day. Do send in your questions to us, and we will spend some more time answering later on today.