Good morning, everyone, and welcome to Nordic Unmanned's business update and second quarter report. My name is Stig Christiansen, and I was lucky enough to join Nordic Unmanned about seven weeks ago as CEO. And I'm here together with my good colleague, Lars Landsnes, who is COO and also acting CFO. I would say that's a pretty unique combination, but then again, you're pretty unique as well, Lars. Thank you, Stig. Okay. While I say a couple of more words, you can review disclaimer. There it is. I hope there's no latency in the system, that it stands. So as I was alluding to, I'm very proud of having had the opportunity to become a part of the Nordic Unmanned team, and I hope that Lars and I today, through this presentation, will be able to explain to you why we are all proud to be part of this organization. The agenda, what Lars and I will talk to you about today: business update, obviously, highlights, as well as financials for the second quarter, 2023. We will do a bit of a deep dive into the business segments, say something about market and outlook, and also have a summary at the end. And hopefully, we have then been able to tell you what we wanted to tell you and sum up at the end. We will also have a Q&A session at the very end. We will take questions through the link that you have been provided with, and we will do our best to respond to any questions after the presentation. So with those words, let's dive into it, starting with a quick summary of the highlights from the second quarter, 2023. The strategic review that you have heard about for quite some time is progressing well and according to plan. We will come back to further details on that later on in the presentation. We had a 37% revenue growth in the quarter. We had, importantly, positive adjusted EBITDA in the quarter, and in fact, an improvement of EUR 4 million compared to the same period last year. We ended the second quarter with an order backlog of EUR 63 million, providing a very good basis for taking the business forward. We also achieved the first Indago 4 sales in the quarter, which is a key milestone. We also had a significant growth, as you see, 69% in flight hours to 1,460 hours. Moving on to our OEMs, or original equipment manufacturing segments in respectively Germany and Belgium, we had a 237% growth in revenues in AirRobot in Germany, and we also had a nice growth in the activity in DroneMatrix, down to the right, as you see, to a revenue of EUR 371,000 in the quarter, where activity is picking up. We will, of course, come back to further details on this, and Lars will take you through all the key points in detail once I've done a little bit of a business update. We thought it was useful to just remind listeners, who are we in Nordic Unmanned? What is it that we are so proud about? Well, in short, we are a leading manufacturer and certified operator of unmanned aircraft systems and services in Europe. We are quite proud of our vision and our purpose in life, which drives everything we do. Above all, we protect values and lives. We have a very clear strategy, which is to be a leader in the development, construction, provision, maintenance, operation, sales, and resale of environmentally friendly, cost-effective, and reliable unmanned aerial flight systems, and not least, services, to competent and quality clients, primarily in mainland Europe, delivering time-critical, actionable data, insight, and logistical services, which we believe is something that will grow a lot in the years ahead. We are proud of the organization in Nordic Unmanned. We have an organization of experienced, competent, dedicated, and client-focused people in our organization. We are equally proud of our key technology partners that you see to the right in the picture, like Lockheed Martin, Textron, Schiebel, Sky-Hero, and Aeromon, and of course, of our competent key clients, down to the right in the corner, Lockheed Martin again, EMSA, the European Maritime Safety Agency, Port of Antwerp, Equinor, Bundeswehr, et cetera. We are very focused in Nordic Unmanned of contributing to a sustainable planet. Like most respectable companies these days, environmental focus is high on the agenda in Nordic Unmanned. Our services are very much focused towards various activities for governmental agencies to help regulate and protect the environment. For example, we are currently engaged on 12 oil spill response vessels across Europe, and we are also on two fishery inspection vessels across Europe. Our solutions, whether our own technology and our own drones or drones that we fly on behalf of or that are supplied by our technology partners, are extremely and environmentally friendly. As you see on the middle of the picture, whether they are electrical, the small drones, or running on fuel, we are extremely energy efficient and therefore emitting much less CO2 and being cost effective as well, compared to the more traditional manned fixed wing solutions for collecting data and doing surveys. We have, of course, picked our UN nations goals. We started picking four that you see on the left, on the bottom of the slide, and we are very committed to do what we can to deliver on those goals. As a group, we are present throughout the value chain, from product development through manufacturing, value adding services, that is maintenance, resell, as well as, of course, flight services, which remains the biggest part of Nordic Unmanned still, and also after sales services. We see a lot of synergies in this group structure and being represented across the value chain. We take experience from our flight operations and use that to continuously improve our already very strong and leading technology within our AirRobot business in Germany and DroneMatrix in Belgium. Our business operations in the group are basically organized, not only basically, they are in fact, and we intend them to stay this way, organized in three business segments, respectively, the flight services that you see to the left, and then we have the two original equipment manufacturers, AirRobot in Germany and DroneMatrix in Belgium. AirRobot is primarily providing high tech solutions, enabling technology in the form of drones and also payloads or sensors attached to the drones, but they also provide after sales service and maintenance. DroneMatrix in Belgium, similar, although not only in inverted commas, selling drones, but also stationing drones, like around the Port of Antwerp-Bruges, where various clients in the area can buy surveillance and flight services by utilizing our technology. A little bit more specific on the various segments, starting with flight services. Within flight services, we are technology agnostics. We are a technology agnostic drone as a service, basically. So we can fly our own drones and technology, but we also fly drones, owned, or supplied by our clients or by our technology partners. We are big in the business of maritime mission critical data, and to the right of the picture, you see emissions monitoring, you see port surveillance, you see maritime surveillance, and you see offshore logistics, which we believe will be a larger market in the future. Importantly, we have the most comprehensive, and here comes one of the abbreviations, I'm sorry, BVLOS license. It means Beyond Visual Line of Sight license, which means if I got it right, large, we can fly up to 145 kilometers, and even longer if we add communication lines to the system, which is way beyond certainly what I can see. That's a key strength of our company. I also want to mention that our LUC, the Light UAS or Light Unmanned Aerial System Operator Certificate, is now on its eleventh revision, which is a key strength and quite unique in Nordic Unmanned. As I alluded to earlier, we have a strong ESG footprint. We have picked our UN goals, and we are evidently, based on our long-term frame contracts, a trusted partner to the European Union and all the nation states in the union. Other key strengths to highlight, we have a 24/7 operation center based here in Norway, with a competent crew of people who are in contact with our pilots, payload operators, and technicians on the ground in various parts of Europe, where the operations are happening. We have first-class in-house regulatory know-how, which allows us to contribute, to develop the system and the regulations going forward, but also allows us to see what is happening and therefore maneuver according to the landscape as we go forward. And we have a whole bunch of specialists in terms of being able to follow the technological development and pick the right equipment, the right partners for the services that we provide to clients. Moving on to AirRobot, our original equipment manufacturer in Germany. It's a leading company, leading, robust company, providing, drone technology and payloads for, various clients, but, military utility, as one example, though, for the purpose of protecting the lives of soldiers. It's developed in-house. This is not R&D, this is commercial. It's happening as we speak. We are selling this and increasingly to clients. We have a long-standing multi-year relationship with the Bundeswehr in Germany. We have a frame agreement with a major U.S. defense contractor, and we have, or we see a strong opportunity pipeline for the products that AirRobot provide. So on this slide, you see a couple of examples of what we have. To the left, the AR100, which is our own, technology, developed in-house, manufactured in-house. It's a small, lightweight drone, carried in a backpack with a flight battery charger, a remote viewer, ground control system, and everything you need to operate the technology on the missions. And to the right, you see the Heimdall sensor, which is also being put together internally now in AirRobot and is being ready for commercialization. It's compatible with our own AR100 drone, as well as the Lockheed Martin Indago III and IV. Then moving to Belgium and our own and the other unique OEM in the Nordic Unmanned Group based in Belgium. Their main product today is what we call drone-in-a-Box solution, the YACOB drone, and you see a picture of it in the right top corner. It's fully autonomous, with artificial intelligence included for continuous learning and improvement of quality of data collection, high bandwidth and low latency, and we have key contracts in large industries. Currently, we have about six of those drones. Not only about, we have six of those drones, around the Port of Antwerp in Belgium, where we then offer surveillance services to various clients in the area. And we see going forward, a vast application potential for this technology. Then, a little bit more detail on the strategic review. As we said, it is progressing as planned, and the company is continuing to evaluate all options that can strengthen our balance sheet and our liquidity, and our room to maneuver, such that we can safely and profitably take this company going forward, into the future. We have prepared an information memorandum. That is not something all of you can have, but for strategic and financial partners that we are in discussions with, as we explore how a financial and strategic solution may look like. We have constructive dialogue with financial creditors and professional suppliers to defer payments, unfortunately, as we go through this challenging period. Importantly, with our secured lenders, we have secured necessary waivers for breach of covenants, as well as deferred installments, in the initial phase, till end of October this year, so two months down the road. But that corresponds well to the timeline and the progress plan we have, such that we will take one step at a time as we move towards what will hopefully be a sustainable solution before year-end, 2023. And I think with that, I will leave the word to Mr. Lars. Lars? I'll go this way. Thank you, Stig. So just recapping the highlights of Q2 in 2023. So strategic review progressing and progressing well according to the milestones set. And as Stig says, we are expecting a solution by the end of the year. So quarter ended with a EUR 6.6 million revenue for the group, which is a 37% increase compared to last Q2 last year. With that, we came in with a positive adjusted EBITDA of EUR 1 million, which is a EUR 4 million improvement from the year ahead. And we're seeing this getting strong. Our EUR 63 million estimated order backlog constitute both a framework contract and fixed purchase order and firm delivery contracts and which will be delivered over the next couple of years. The Indago IV, we had in the resale business and in the flight services, we have used the Indago III. The Indago IV is now available for customers out there, and we did our first sale of the Indago IV in Q2 to a European NATO MOD. In addition, we also sold an Indago III to a German customer. In flight services, we flew 1,416 hours in a quarter, which is a 69% growth compared to last year. In the OEMs, we had an increase of EUR 1.3 million revenue in AirRobot, which is a 237% growth, which comes mainly from the two large contracts, TIQUILA, for Lockheed Martin, U.K. Ministry of Defence, and the MIKADO II for Bundeswehr. In DroneMatrix, starting to develop growth in the revenue side with EUR 371 thousand for the quarter. Going into a little bit more the details of the financials. So EUR 6.6 million of revenue, compared to EUR 4.8 million last year. Year to date, EUR 8.8 million versus EUR 7.3 million. And as you see, adjusted EBITDA for the group of EUR 1 million, compared to -EUR 3 million last year. So the improvement in adjusted EBITDA comes from higher activity in the segments, cost reductions in the group and flight services, and in addition to fly operation performance. The adjusted EBITDA percentage came in at 15% for the quarter. In respect of EBIT, came in at minus 6.2 versus 4.2 in Q2 2022. EUR 2.9 million was charged as impairment cost in Q2 2023, and non-recurring items of EUR 2.9 million. 12 month rolling revenue is an increase of 47% revenue growth compared to last year in the same period, but with an increased financial performance. The non-recurring items and impairments stems from personnel-related restructuring cost of close to EUR 1 million, which also includes the close down of our U.S. office and operation there. It's a write-down of some other receivables, and we have provisioned for the cost of the strategic review, which is currently ongoing, with EUR 1 million for that quarter. Impairment charges in the quarter stems from a review of the balance sheet and taking the market value of these assets, which led to an impairment of NUAer of EUR 1.5 million and an impairment of the valuation of a subsidiary of EUR 0.9 million. And these are based upon the current strategic review we are currently conducting. Just for the segmented side, flight services came in at EUR 4.4 million, and OEM business is EUR 2.2 million of the revenue. So flight services being 2/3 of the current revenue mix, and OEM business is 1/3. In respect of EBITDA, adjusted EBITDA per segment, which do not include overhead allocation or group cost out to the segments. Flight services business came in at EUR 1.1 million, and the OEM business is EUR 700,000. With the margin of the flight services business of 25% and the OEM business of 32%, adjusted EBITDA. In respect of the balance sheet, I said, we came in with a total asset of EUR 45.4 million, and a market review has been conducted throughout the quarter to assess the valuation of the current assets. And therefore, certain impairments has been booked in the quarter. We had an inventory build-up in AirRobot to secure critical components for the delivery of the AR100 and the Heimdall sensor for the MIKADO II and TIQUILA contract respectively in the quarter. And that should be starting delivering products in Q3 and Q4 of this year. Book equity came in at 27.3% at the end of the quarter. Last year, we started a project to right-size the business. So from July 2022 to July this year, we have reduced the number of employees, full-time equivalents, of 51. This 30% reduction in total FTEs is coming from the group overhead and flight services, and it's to ensure strategic focus and operational efficiency in all aspects of the Norwegian part of the business. Last 12 months, revenue per FTE doubled in the period from EUR 62,780- EUR 124,519 in June 2023. At the current run rate, the cost base going forward is assumed to be EUR 2 million lower in the second half than the first half of 2023. In respect of cash, cash flow from operations came in with EUR 0.5 million positive, well, EUR 2 million was positive from changes in working capital. In investments of EUR 3.1 million, we invested in EUR 1.9 million in the Aerosonde system, including the Hybrid Quad, which is being utilized on the OP46 and the OP5 contract. In addition, EUR 1.2 million was invested in proprietary technology, the IP side in AirRobot, for the Heimdall sensor for the AR100-H drone system and into the YACOB system in DroneMatrix. Net proceeds from financing of EUR 2.6 million is drawdown of the credit lines with SR Bank and Volksbank Günne in Germany. The quarter came in with a liquidity reserve of EUR 560,000, and we have invested in growth, as said, in the Aerosonde system and in inventory throughout the quarter. There is EUR 5.8 million drawdown on the credit lines in SR Bank and Postbank and the owner. We've secured at the end secured a waiver from the secured lenders till end October, and consequently, long-term debt has been reclassified as short-term debt. And in this agreement, we also secured lender, we secured with the secured lenders, include a deferred installment for the same period. Flight services, as said, at 69% increase in flight hours, quarter-over-quarter. They came in with EUR 4.4 million in revenue versus EUR 4.5 million one year ago. Adjusted EBITDA came in at EUR 1.1 million positive, versus a loss, -EUR 1.1 million last year. So we had operational two parallel deployments on OP46 with the Aerosonde platform, and the third deployment started in August 2023 with the 24/7 operations. We trained the first crew operating the Aerosonde Hybrid Quad to get ready for OP05, which we expect will start operating in early 2024. On the lightweight side, we had we were on one European Fisheries Control vessel with the team, and then throughout the quarter, in the second quarter, we added another EFCA vessel. So currently, we are on two EFCA vessels for the OP1 contract. And as said earlier, we conducted a sale of an Indago 3, so emptying a bit the inventory of the Indago 3, and now being placing that to and focus on the Indago 4, which also is... The Indago 4 is also the same sensor as we have on the AR100, and it's the same sensor in the TIQUILA program. So this sale of Indago 4, it also included the Heimdall sensor. Operations overview 2023. We're expecting to have a Camcopter operation in Brazil at the end of this quarter, going into 2024. We are currently completing—we just completed Denmark now in mid-August, and we're preparing for the conversion of that system into a hybrid quad system. So we are reutilizing the assets to other type of missions and contracts. Currently, we are in Estonia or the Baltics, servicing the clients in Finland, Estonia, and Latvia. And we are in Spain on the OP46 and servicing Spanish and Portuguese authorities. In addition, we've been fully air as we have had the last three years on the EFCA vessel on OP1, formerly OP12, and now we started on an operation for the second OP1 vessel or EFCA vessel. Just out of interest, in 2023, we forecast and project that we will surpass the total flight hours we've had over the last past three years. So close to 5,500 hours, which is a CAGR of 92% since 2020. AirRobot came in with a revenue of EUR 1.8 million compared to EUR 0.5 million in Q2 2022, and had a 33% margin on that activity. The two big programs in Germany, in AirRobot, is TIQUILA, which is delivery of the Heimdall sensor to Lockheed Martin, utilized by the U.K. Ministry of Defence. And significant milestones was achieved during the quarter, and how we made sure that we have enough spare parts and conductors to make sure that we deliver, start delivering now in Q3 the sensors. On the Mikado II program contract for Bundeswehr or the German Army is also progressing in accordance with the new milestone plan for the certification process is expected to be complete in Q4, where we also will deliver the first batch of AR100-H to that customer. Even though, the AR100-H is a product, and we've received orders, with delivery this fall, for German police customers and as an Australian customer. In respect of, DroneMatrix, which we do own, 55% of, we were awarded a large-scale counter-UAV project for a major financial institution in Belgium, which are to be delivered this year and has a contract value of EUR 600,000. The national, Infrabel, the national railway operator, took delivery of the first, YACOB system, and which, which, solidifies the position, of DroneMatrix to, to deliver to, critical, infrastructure operators. We completed the installation of six systems for Port of Antwerp, and we're flying in Port of Antwerp, giving them the end user critical data for their operation. And we've done that through utilizing our LUC and Nordic Unmanned flight services. And of course, the area is highly active in respect of business development at global ports and other co-critical infrastructure. It came in with an operating revenue of EUR 371,000, with a 17% EBITDA margin. That will conclude the summary of the different business segment and the numbers, and I'll leave it to Stig to take the rest. Thank you, Lars. Then I will take you through the last part of the session, market and outlook. I don't have a crystal ball, unfortunately, but I think most industry research would suggest that drones is part of the future to protect lives and values, and also to offer up services for other such critical services for any society. As an enabling technology, combined with different payloads, attached. The demand drivers behind this is a combination of increasingly favorable regulatory environment, certainly in Europe. The environmental benefits that we have talked to earlier in the presentation. Also, the fact that there is improved awareness and education, as the use increases, then people get a better understanding of what the drones are, and what they are useful for. Of course, unmanned drones yield significant cost benefits as well as safety benefits being unmanned. There are continuous technology advancements, and we are ourselves in the forefront when it comes to making sure we continuously learn and improve on the technology and the way we operate them. And there is obviously an increasingly greater scope of application, and we are just very mindful in that landscape that we remain focused and go for what is necessary and what the clients need. That is also something that makes commercial sense and not everything else, i.e., a strategic, a focused strategy. So we, in sum, based on what we've told you now, we believe our company, with our track record, with our competence base, with our technology, with our competent clients, technology partners, we are extremely well-positioned in the European drone ecosystem, for larger governmental agencies, as well as larger corporations, in order to assist them, in, surveillance and data collection in order to protect values and lives. Just quickly, Lars already talked to this. The EUR 63 million order backlog at the end of the second quarter comprises of, as you see to the right, EUR 45.5 million of framework contracts and EUR 17.5 million of firm purchase orders or firm contracts. And we would like to underscore the subtitles to the slide. We have only included frame contracts where we, although on a subjective basis, have a high or see a high probability of call-offs and takeouts under the frame agreements. This provides us with a good basis over the next 2-3 years to take the company forward. Over and above that, of course, we need to continue to approach new clients and existing clients and sell more of our technology and services. We have decided to revise our financial targets for 2023. We had the guiding earlier. We took that off the table earlier this summer. We now have a revised top line or revenue target for 2023, between EUR 22 million and EUR 25 million. That would imply at least a 20% top line growth in the second half of this year compared to the first half, as well as an improved EBITDA that Lars has alluded to. The revenue range provided is to allow for weather and timing of activity. Okay. Currently, and over the next few months towards year-end and Christmas, our key priorities and focus are to deliver revenue growth on the current contracts and prepare for 2024 and beyond. To manage the challenging financial situation that we are in, unfortunately, to minimize business disruptions, to continue to progress strategic review towards a final or a sustainable financial as well as strategic solution for the company and all our stakeholders. Through that period, protect and support our clients, our partners, our operations, and our organization. Therefore, to arrive at a sustainable solution, financially and strategically at the end of the year, as we have now said a couple of times. That's our key priorities. So to sum up before we take questions, we see increased activity and improved underlying results. We see activity pick up, obviously, in our original equipment manufacturing segments in Germany and Belgium, as well as in the flight services. Over time, we foresee that continued growth in these OEM segments will counter seasonality and earnings. Having said that, we also foresee going forward that there will be contracts also for flight services that will open up, hopefully for year-round services, which also will, over time, counter the current seasonality in our earnings. Strategic review progressing as planned, order backlog providing a good basis, and to end the presentation, we have a very clear strategy. We are very well-positioned. We are an operational experience going concern in an industry with a very promising outlook. So thank you for that, and now Lars and I will be ready to take any questions through the web. So if you join me, Lars, then let's see if we can answer any of them, if there are any. Bear with us for a second. Okay, so here's a question: How does the future of Nordic Unmanned look like? And what do you believe will be the most important key points for the future of Nordic Unmanned? Okay, we can both talk, Lars, but let me start, and you can supplement. It's a dialogue. It's a team effort anyway. I think as a starting point, the future for Nordic Unmanned will hopefully look according to our strategy plan, which we, in essence, have now presented to you. We believe in our integrated model from product development, manufacturing, service, sales, and flight services. We believe in the synergies in that business model, and we believe in our current segment setup. And I think from an operational model point of view, that's how we would like to see Nordic Unmanned going forward. The key points is, first of all, obviously, to be able to come out with a good solution sooner rather than later under the strategic review, such that we can robustify, if that's even the word, the group, and continue to develop the company in a controlled and profitable manner for the benefit of our stakeholders, our organization, and our clients and our partners. Anything to add to that, Lars? Feel free. So in addition, we are, as you say, in a really expansive industry. It's a growth industry, and financially, we are working to make sure that we get positive bottom line in the future. Okay, I was just about to read another one, Lars. So, these are the two questions we have received. And, on that note, we kind of hope it means that our presentation was both comprehensive, clear, and understandable. And in any event, thank you all for listening in, and have a nice, nice day. Thank you. Thank you.
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