Good morning and welcome to the Q3 2024 presentation for Nordic Unmanned and NU Group. My name is Stig Christiansen. I'm the CEO, and with me I have. My name is Tarjei Lode. I'm the CFO. Thank you, Tarjei. Tarjei and I will share the presentation today. I will start, and then he will take over, and then I will finish at the end, and we will also be around for any questions at the end of the presentation. First of all, I really hope you enjoyed the start of the presentation, the movie or the film that we are very proud of, and really tells the new story in a spectacular way, in our own opinion at least. Please let us know. While I'm smiling a little bit and taking a moment of pause, please review the forward-looking statements, which I urge you to read in your own time as well, and then let's move on to the agenda for today's presentation. We will go through highlights of the period, business update, financials, industry context or outlook, and then, of course, end up with a summary, and then we'll do Q&A at the end if there are any. Moving on to highlights. I will not spend time on the financials as such. I will leave that to Tarjei, the CFO. All I want to say is that Q3 2024 is characterized by higher activity and a strong adjusted EBITDA, which we are very proud of, largely due to high activity in flight seasons and other elements that I leave to the CFO. Other than that, the period and the period since Q3 has been very eventful in Nordic Unmanned. We have been doing a lot of activities through 2024 in order to turn the company around. In Q2, we launched a new strategy, a clarified strategy towards defense and security, focusing on consolidation, i.e., trying to find partners that can help us scale flight services in particular, and we also launched the new profile and a new communication strategy to support our strategic focus and efforts to turn the company around and move into a future where we will first break even and then start making profits and becoming cash flow positive. In September, in the quarter, we completed the financial restructuring that we announced in Q2, which included new equity as well as conversion and, to some extent, write-off of debt, which improved our balance sheet. And then we are currently, as you know, in the process of strengthening our balance sheet again to help us provide the runway necessary to complete the strategic turnaround of the company and create a fresh start for a new group. We are also working on legal restructuring to add optionality to the portfolio, but also to make sure that our legal structure is more in line with traditional group structures where we do not have operating activities entangled into the listed parent company. I'll come back to that. And other than that, I'll leave further financial comments, as I said, to the CFO as he takes over in a short while. If the clicker now works. Yeah, let's move on to business update. Thank you. So we're looking towards a fresh start. That's what we're trying to achieve through 2024 as a transition year. We have achieved, as you have seen, significant cost cuts, right-sizing the organization, streamlining our operations. We have, as I alluded to, reduced the debt through the financial restructuring completed in September. We have clarified the strategy, and we continue to seek further improvements across our business through various turnaround activities, basically leading to a group structure where we have two strategic business segments, respectively flight services, which in essence is heading towards an asset-light business model, asset-light drone as a service. We'll come back to that. And the OEM business in Europe, represented by AirRobot, Drone Matrix, and also our team in the UK. It is anticipated from our side that everything we're doing will add optionality and provide a basis for a potential division of the company in the future, if and when that makes sense, which may further reinforce our opportunities to seek separate consolidation and development opportunities for the two strategic segments, and in sum, we believe that will not only strengthen the company and secure the workplace for our colleagues, but it will also hopefully offer a more pure play risk-reward and potentially attract different types of investors in the future, so the end game to all of this is this picture where we have two strategic business segments, as I alluded to, flight services to the left, where our main focus is to increasingly become asset-light. Whether we will be able to sell assets remains to be seen. We're still trying to do that. But in any event, the strategy going forward is to tie up with partners, OEM partners who have the right UAS platforms so that we can focus on what we're best at, certainly among the best in Europe, which is flying advanced UAS platforms beyond visual line of sight remotely in order to basically secure actionable data for a set of clients within emissions monitoring, maritime surveillance, and in the future, we believe also offshore logistics and potentially other things. And then, of course, in the OEMs, where we have a very separate business model, we're developing technology and we are selling technology or products in the form of drones to protect soldiers, provide market intelligence, and also drones to gather information in ports and other infrastructure projects across Europe. So the business model there is technology development and product sales, whereas within flight services, it's in essence being paid per flight hour. So that's the strategy in short and the context. And with that, I'll leave the word to Tarjei, the CFO, and then he will take over. Tarjei. Thank you for that, Stig. Going over to the consolidated numbers. If this works, yeah. We saw an operating revenue of EUR 6.6 million compared to EUR 6.1 million Q-on-Q last year. The main reasons being in Q3 2023, we had some currently discontinued operations in the form of a subsidiary Ecoxy. We had some resale, and we also had some insurance that's affecting the like-for-like comparisons. With regards to the EBITDA, we saw an improvement from EUR 1.9 million, pretty much EUR 2 million from EUR 930,000 from previous year. This is mainly driven by good performance in the flight services division, where we had record numbers of flight hours during the quarter. However, there's some weak development within the AirRobot division that I will go on to further. It should also be mentioned that during the quarter, we have evaluated the asset base, and we have decided to write down the long-term assets, the drone park, with about EUR 6.3 million, mainly due to the current usage of those assets, but it does not reflect our current view of the future for Nordic Unmanned and specifically flight services. Going over to the balance sheet, we currently have an equity ratio of 26% at the end of the quarter. It should be said that comparing the numbers from last year to this year, we have successfully completed a legal restructuring and financial restructuring that was announced in September. Furthermore, we are also in a current capital raise that is likely to be completed within November or beginning of December. In terms of the cash position, we had EUR 292k at the beginning of the quarter and ended with EUR 120k, which is driven by good performance in the flight services division, not so good within the OEM business. We had some CapEx of EUR 0.1 million, and we had some effects with regards to the financial restructuring of EUR 3.5 million. Going over to the business segments for flight services. As previously alluded to, we had a record number of flight hours with more than 1,000 flown hours during the quarter, resulting in a revenue of EUR 5.1 million compared to EUR 3.7 million in previous quarter. Q1Q, year on year, I mean. With regards to the EBITDA, we saw an EBITDA of EUR 2.5 million compared to EUR 270k year on year, resulting in an EBITDA margin going from 7% to 49% in the quarter. With regards to the impairment, the majority of the impairment came from the flight services segment, which was, as noted, EUR 6.3 million. Going over to AirRobot. AirRobot had a weaker performance during the quarter compared to last year, with EUR 1.4 million in revenue compared to EUR 2.4 million in the previous year, which resulted in an EBITDA of EUR 489k compared to a positive EBITDA of EUR 1.2 million in the previous year. The result within the AirRobot segment is mainly due to a stop work order from a major client, and then we had some supply chain and working capital issues within the segment. It should, however, be noted that we are currently working on a continuous improvement project that has been launched during the Q2, beginning of Q3, that is likely to have a positive effect from 2025. Going over to Drone Matrix. Drone Matrix had an operating revenue of EUR 167k compared to EUR 426k in last year, resulting in an Adjusted EBITDA of EUR 64k compared to EUR 16k last year. The effect within the revenue is mainly due to lower sales activity, but as you can see, it had a positive effect on the Adjusted EBITDA line. It can also be noted in this segment that during the quarter, we received an award for development funding from DEFRA of EUR 350k. Going over to industry context, and I'm handing the word over to Stig. Thank you, Tarjei. That was very good. We'll see if there are any questions at the end. So industry context in brief, our order backlog, and it's important that, of course, you note the footnote on the slide. This is a consistent, of course, consistent methodology, but best effort basis estimated to be a total of EUR 44 million at the end of the quarter, at the end of Q3, and to the right, you see the distribution, how it is anticipated on if we assume everything is in fact consumed into revenue, how it may be distributed per segment and per year over the next two years, so the estimated order backlog is a combination of our best effort estimation of remaining value under so-called master service agreements or frame contracts, and separately, more precisely, purchase orders, specific contracts received, so that provides a solid that we can build on moving into 2025. Of course, having said that, one of many things we are doing now is to do our utmost to strengthen our sales force across the company, where admittedly we have been too weak for too long and clearly, we need to support our new communication strategy and the branding and everything we're doing through various marketing channels with good colleagues who can help us knock on doors and tell the world about all the good services, technology, and products and experience and track record that we in fact have, such that we can hopefully continue to build the NU Group going forward. In terms of market information, I mean, we could probably have spent 50 slides alone on market information from the drone and drone service industry as such. I think I've yet to meet anyone who disagrees with the fact that drones and drone services is a central part of the future. The question is more how the various companies position towards the various niches and segments within the global drone industry. Our key focus is the Nordics and not least Europe, mainland Europe, and in particular, then naturally, all the NATO countries in Europe. That market is large enough. There are a number of positive demand drivers, and we are quite convinced, we're absolutely convinced, in fact, that the companies that survive in this industry will have more than enough to do in the future when the future arrives, which is why we're doing all the efforts we can now during 2024. And we have, in fact, been doing a bunch of efforts over the last 15-24 months that we have talked to in order to try to streamline and strengthen the company and position the company for what is clearly a very interesting future where security, defense, and market intelligence data is very, very high on the agenda. So the context is clearly positive. We just need to make sure we do the right things to get our share of it. And we're doing our best. Something happens to the screen. Not sure what that is. Anyways, moving on to the summary. So in short, from our side, we have definitely significantly improved the cost base in the company. And I think Tarjei showed that when he talked to the Q3 numbers. We have reduced the debt through the financial restructuring. We saw higher activity or record high activity, in fact, for flight services in the quarter, which is very positive, and we therefore also saw a strong Adjusted EBITDA, and clearly, we are still exposed to, unfortunately, generally too low volumes and the seasonality. We are working hard to address that too, but I think the quarter in isolation shows the potential in NU Group if we can only manage to add some volume to the top line. The financial restructuring was completed, which gave us a strengthened balance sheet, and we are, again, as you know, in the process of capitalizing the company in order to support our strategy and the ongoing turnaround activities. The turnaround plan involves a set of elements. One is to strengthen the sales side of the company, which I already alluded to. Another is to develop further our technology roadmap for the OEMs. The third is to find partners, OEM partners, with the right UAS platforms for flight services projects in the future. But it's also to find the right partners to help us both market and sell our technology in Europe, but also to manufacture that technology locally in other NATO countries across Europe. Just to mention some of the elements that we are working on under the context of the turnaround plan. All, of course, in order to seek maximum optionality and eventually scaling of the business and a sustainable business model. We have a very focused strategy in NU now. We have two strategic segments, and it's all about defense, security, and consolidation for scale. And it's all about flying as much as possible or selling as many products as possible. And as I alluded to, there is no doubt that there is a generally positive industry outlook for drones and drone services in the future. And for the companies who pull through and are rightly positioned, then I think the opportunities are many. And so hopefully what we're doing, what we have done, continue to do, are the right measures. And with your continued support and good wish, then hopefully NU Group will be one of the winners in the future landscape in the drone industry. So with that, Tarjei, if you join me again, then we'll ask our good colleague in the corner if there are any questions. Thank you. Okay, we've done some checking, and for some reason, there are no questions posed to us, which we choose to believe means that Tarjei and I have been quite clear in our messaging. We appreciate that you showed up. We appreciate your attention, and we wish you a great day. Thank you. Thank you.
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