Norbit Group AS — Call Transcript 2025

Good morning and welcome to the presentation of NORBIT's Third Quarter Results. It's a privilege to be allowed to present the result of what our dedicated colleagues have achieved. As you will see, after the first nine months of the year, we're delivering revenues at par with what we did for the full year last year and with nearly a doubling of the result. For us, this is encouraging and helps us to go to work every day and ensure that we deliver on the expectations our customers have. Let's dive into the numbers. As you see, Q3, as always, is somewhat weaker than the other quarters. Still, Q3 2024 is the best Q3 ever for NORBIT. We came in with revenues on NOK 505 million, which is a 36% increase from last year, with a margin of 15%, giving NOK 75 million in EBIT. As I already said, for the first nine months of the year, we are delivering at par of what we did for the full year last year, NOK 1.7 billion, up 43%. It is growth in all three business segments, with an EBIT of NOK 377 million, which is 92% higher than what we had for the same period last year. That represents a margin of 22%. Some other events, we have announced some new contracts in the PIR segment towards the defense and security sector. It is a NOK 120 million contract. In that announcement, we also said that we have had accumulated smaller orders, which also summed up to NOK 100 million. Yesterday, our eminent board of directors decided to resolve an extraordinary dividend of NOK 3 per share. Looking into the different segments, Oceans has some seasonality. It is vacation season in Q3. Still, nearly NOK 200 million, so NOK 192 million in revenues. That represents an increase of 22% from last year. EBIT margin of 21% compared to 19%. For the first nine months, we've delivered NOK 665 million in revenues. That's an increase of 40% and an accumulated margin of 32%, which is a good increase from the 25% we had for the corresponding period the year before. As you can see, from Q3 2022, in NORBIT, quarterly fluctuation is expected. Some of what we deliver in the Oceans segment is high-priced, high-value products. Some units in or out of a quarter will affect the numbers, in addition to the underlying seasonality. Diving into what's behind these numbers, this is year-to-date figures for the first nine months, 2023, first nine months, 2024, and 2025, showing that the WINGHEAD sales is somewhat higher this year than it was last year, NOK 120 million, and a very good growth in other sonars. This is very much driven by increased sales of the iWBMS X, which we launched this year. I could remind you what this is. That's a sonar which is fully equipped with all thinkable hardware features for such a sonar. You can buy software features to upgrade according to your need. It looks like our clients really appreciate this offering, that they could buy a sonar which enables them later to buy a software upgrade for additional functionality. That's been good. Sub-bottom profilers, NOK 66 million. Yeah, and still on the security side, which we remain very positive for in the long run, it's lower than our ambitions, but ambition remains as high as it has been. The Connectivity segment, its revenues are at par with Q3 last year, NOK 108 million compared to NOK 111 million. The decline is due to some rescheduling of On-Board Units, and some of the revenues that we were aiming to have in Q3 have been slipping into Q4. For the first nine months, we have accumulated a 70% increase, so NOK 423 million. I'll show you the split afterwards. That's a margin of 27% for the accumulated year-to-date numbers. As you see on the revenue split, the On-Board Units, it's the toll tags for mainly passenger cars, it's somewhat lower than it was last year. It's good growth on the enforcement modules for tachographs. The rest, also a little bit growth or stable. Some status on the product. We were awarded the contract in April last year for making a complete new satellite-based tolling unit for trucks, so-called 4G-based GNSS On-Board Units. It is a NOK 160 million contract. This contract is for supply of units to the European leader in this electronic toll collection system, so Toll4Europe. Volume production started in October. It is then 18 months from being awarded this contract, running through the R&D phase, industrialization, assembly of a full robotic line, and scaling up that. I think it is a good job done from our colleagues. Ambition was to do it even in a shorter period. It is satisfying to see that finally we are running a high-volume assembly line in our Røros factory. This product is very much in line with our strategy to broaden both customer base and product offering. We are eager to see how this evolves as the existing fleet of GNSS On-Board Units in European trucks is very much based on 2G GSM. As we see European countries are planning to phase out the 2G GSM network, we see that there is a need for replacement of the existing fleet in addition to the underlying growth in the market. Segment, product innovation and realization. Also, I'd like to remind you, NORBIT is a very much vertically integrated company where we've believed in for many, many years that making the product, doing the production also in Europe and in Norway, in addition to designing the products, is a good thing to do. We've seen that some spare capacity in our factories. We've decided to offer on contract manufacturing terms to other technology companies, industrial technology companies. For a selection of such clients, we're acting as a scaling industrial partner. It is very satisfying to see that we have really been able to scale. Some of the investments we've done have really helped us. We announced earlier this year that from April, we installed a new line for surface mounting of electronic components in our Røros factory. This is said to be Europe's fastest SMT line. That is good. It has been running. We have an increase from NOK 114 million in revenues in Q3 2024 up to NOK 224 million. It is a high increase and a good margin improvement showing the scalability in this business with operational leverage. A lot of the indirect resources needed to run this is very much shared between the different segments. For the first nine months of 2025, we've accumulated revenues of nearly NOK 680 million, which is a 72% increase from the same period last year. It's an EBIT margin of 18%, which is double of the nine we had for the first nine months in 2024. As you can see from this split, the defense and security sector is really the reason why this is growing. As you can see also, some of the clients in the automotive industry and some industrial, we have sort of not fully phased out, but we have not been very active getting new. I think I've said it before also, that some clients we've been helping to move to other factories to free up capacity for these new scaling partners. Capacity, I mentioned and reminded you of this investment of the new SMT line in our Røros factory. We are also increasing the floor space of our Serbia factory, very good cooperation with the local municipality. They are responsible for project execution and financing of this expansion, which is coupled to our existing plant. Completion, year-end. A new SMT line is ordered and will be installed in this facility in January. This is very good. We see that it helps us even increase capacity more. We have an option to acquire ownership of the facility if we decide to do so. With that, I'll leave the floor for Per Kristian to give you some more details of the financial figures. Thank you, Per Jørgen. I will spend some minutes walking you through the highlights of the quarter. Revenues came in at NOK 505.4 million, an increase of 36% from the corresponding quarter of 2024, with Oceans and PIR contributing to the growth. While Connectivity reported a 3% decline in revenues on a NOK 15 million post-movement of onboard units to the fourth quarter. EBITDA for the quarter was NOK 114.7 million, representing a margin of 23%. This compares to NOK 86.6 million and the same margin in the third quarter of 2024. Operating profit was NOK 75.4 million, translating into a margin of 15%. This compares to NOK 53.7 million and a margin of 14% in the third quarter of last year. Net finance expenses were negative NOK 6.5 million, largely explained by NOK 8 million in net interest expenses, partly offset by foreign exchange gains. Tax expenses, NOK 17.2 million, while net income for the period was NOK 51.8 million, translating into an earnings per share of NOK 0.81. In the third quarter, Oceans delivered 22% revenue growth. Sonar sales were strong, particularly in the Americas region. We continue to see strong sales of the new WBMS X sonar platform that was launched earlier this year. On the negative side, sales in security and for sub-bottom profilers were slow in the third quarter. Oceans' gross margin declined 4 percentage points year-over-year due to lower sales of rental, training, and consultancy services, as well as obsolescence provisions. Payroll and operating expenses increased NOK 7.2 million on new hires, wage inflation, and use of external consultants. In total, the EBIT result came in at NOK 41.3 million, up from NOK 30.7 million in the same period of last year. Connectivity, as mentioned, delivered a 3% revenue decrease. Compared to the last year, revenues declined primarily due to lower volumes of On-Board Units sold. Again, mention that deliveries worth NOK 15 million were postponed to the fourth quarter. The decline was partly offset by an increase in volume sold of enforcement modules for satellite-based tolling units. The gross margin fell 4 percentage points on product mix and scrapping costs. Operating expenses, including payroll, increased NOK 3 million year-over-year. The EBIT result for the quarter came in at NOK 16.6 million, down from NOK 28.1 million in the third quarter of 2024. PIR posted a significant improvement in revenues, close to a doubling from the third quarter of last year, primarily driven by increasing demand from the defense clients in the defense and security sector. Gross margin came down 1 percentage point, while payroll and operating expenses increased NOK 13.6 million on new hires, wage inflation, and activity-related costs. The EBIT result for the quarter was NOK 40.5 million in the quarter, up from NOK 12.2 million in the same period of last year. Turning to the balance sheet. Property, plant, and equipment, including rights of use assets, increased NOK 36.5 million in the quarter. This is primarily due to investments in capacity expansion on surface mounting machinery. Intangible assets rose approximately NOK 9 million, explained by our R&D investments, while trade receivables were down NOK 16.5 million, explained by the sequential revenue decline from the second quarter. Inventories rose NOK 92.7 million. This is explained by sourcing of components to prepare for the significant activity increase we expect in fourth quarter, including delivery of the GNSS On-Board Unit and defense and security-related products within the PIR segment, hence referring to our outlook section, which we will come back to in a few minutes. Net interest-bearing debt stood at NOK 320.5 million at the end of August, an increase from NOK 274 million at the end of the previous quarter. Our equity ratio was 50%, which is on par with what we reported the last quarter. We continued to strengthen our liquidity position in the quarter by increasing our multicurrency order facility by NOK 150 million, subsequent to 30.09, so that the pro forma liquidity stood at close to NOK 830 million. Our balance sheet continues to remain rock solid, with a net interest-bearing debt to EBITDA ratio of 0.7x at the end of the third quarter. Due to our strong balance sheet, financial position, and the solid outlook, the board has resolved to distribute an extraordinary cash dividend of NOK 3 per share for the financial year 2024. Considering we are currently below the long-term target range of the financial policy, the dividend distribution is also very much in line with the policy of returning excess cash to the shareholders. The dividend will be paid out from NORBIT in approximately two weeks from now. Lastly, cash flow for the quarter. Cash flow from operations was NOK 1.9 million negative, explained by an EBITDA of NOK 114.7 million, a net increase in working capital of NOK 95.8 million, taxes paid of NOK 14.4 million, and NOK 6.5 million in net finance expenses. We invested NOK 40.8 million in the quarter, explained by approximately NOK 30 million R&D investments and NOK 11 million in machinery and equipment. The R&D investment level for 2025 is still expected to be between NOK 130 million-NOK 140 million, and there are no changes to the machinery and equipment investment guidance of around NOK 120 million for the full year. Cash inflow from financing activities was NOK 11.9 million in the quarter. With that, that summarizes the financial section, and I will give the floor back to Per Jørgen for the outlook part of the presentation. Thank you, Per Kristian. Starting this year, we had a target of delivering NOK 2.2 billion-NOK 2.3 billion in revenues. When we presented the first half-year results, we raised that target to NOK 2.5 billion-NOK 2.6 billion. This remains our target for the full year. We expect revenues in that range. With that, we expect an EBIT margin between 24% and 25% for the full year. As you see, Q4, as always, is a hectical quarter, and this is expected also for 2025. In the different segments, the three last months is typically the strongest in Oceans. Some of this is related to what we would call, in quotes, "budget flushing." That's not very easy to predict, but it really happens. So we're preparing for that. In Connectivity, revenues are expected to increase sharply quarter-over-quarter. And this is driven by delivery of the GNSS OBU, which started in October. We expect revenues in the range of NOK 200 million-NOK 240 million for this. In the PIR segment, we expect to generate new records. The aim is to deliver between NOK 390 million and NOK 420 million in the fourth quarter. This is driven by the same sector, as I've explained earlier, which is very strong also in our outlook. That concludes our presentation. If there are any questions, we're happy to answer them. We have a few questions. One question from Olav at Per Jættu. Could you give some color on Q4 Connectivity guidance and if this reflects some reshuffling of the GNSS On-Board Unit into first quarter 2026? Yeah, let's take that question. Yeah, so what we can say is that, as I mentioned, we started this project 18 months ago. And the design phase until reaching approval took a couple of months longer time than expected, meaning that start of ramp-up of production also was a little bit postponed. It's a good question. It's probably easiest to say that some of the revenues in this contract are reflected in the guidance to be expected in Q1 instead of fully in Q4. It's a little bit annoying, but this is what happens when you have some delays. Maybe also add to that, when NORBIT are looking for new projects, we'd like to find things which are very hard to design. Our engineers should struggle. And so we did. We did struggle. But we made it. Why is this positive? It means it's complicated to make this, and it gives some threshold for others to come easily afterwards. Just want to add that. Same question from, or a new question from Olav. The sonar sales look very strong this quarter. Could you give some color on which customer groups and use cases and what is driving this? When we are speaking about Oceans, lastly, sub-bottom profilers are tad softer this quarter. Can you give some color on this product for Q4? I think we do not have any split for the different sub-segments in the guidance. I think what we have seen is that the product WBMS X has performed very well. As with other sonars, it has a wide range of different use cases. I think this is what was in Q3 also, that it's a widespread sum for ordinary surveying purposes, seafloor mapping. We still see a very strong demand from different kinds of autonomous vessels, both surface and sub-surface vessels. Good. Question from Jeppe at Arctic. What was the reason for the postponement of the NOK 15 million OBU order? Yeah, this is partly late incoming material and partly some shuffling on capacity. How much of the NOK 160 million GNSS On-Board Unit contract has been delivered as of now? I don't think we've given any figures on that. I think we will keep that, for commercial reasons, we'd like to keep that a little bit low. What is the most important drivers of the GNSS On-Board Unit product? In the medium term, is the 2G switch the most important driver? I think the underlying market need is good. In the medium term, this phase-out of the 2G is expected really to generate a strong demand. I mean, Switzerland has already turned off their 2G GSM. The major German network providers have announced that in mid-2028, they will turn off. I think for the coming years, this is an important driver. Creates a sort of a replacement need for the 2G units that are in the market. Yeah. Could you share any updates on sales lead for the GuardPoint product? Progress seems to have been slower than anticipated. Yeah, I think it remains, as we've said in the past, that it's a lot of sales lead. The conclusions on the projects are not materializing as soon as expected. Our judgment is that this is the reason. We cannot see that the projects we're aiming for are lost, that there are some competitors gaining them. We still think we are well positioned with relevant technology. Yeah, we remain safe under pressure and continue to work hard every day to get these orders. Lastly, any comments regarding the development of Innomar in the quarter? Yeah, the revenues are somewhat weaker in the quarter than we expected. Looking into this, we expect improvement of that again looking into next year. What we see is that the proactive activities in the market generate more interest. The NORBIT global sales and market platform now carries the sub-bottom profiler offering from our daughter company Innomar. We feel that this will increase and be a good addition to our continued growth also going forward. Question on the dividend. I will combine these, I think. Does the additional dividend suggest no M&A in focus? Did you consider any potential acquisitions before deciding on the payout, or was the dividend your first priority? I'd like to remind you that we have a financial policy of having a NIBD to EBITDA ratio between 1 and 2.5. As we reported in this quarter, we're at 0.7x, which means that we are below the policy. For us also going into a record fourth quarter as we see it currently, there is room for both. There is room to pay out the dividend, and there's also room to explore M&A. As always, each individual M&A case has to be assessed. The capital structure of that investment has to be decided solely on the investment size itself. It means that no M&A is not off the table. It's actually a very high topic on the strategic agenda. To summarize again, our balance sheet allows us to do both. It is not either/or. A question regarding PIR. How is the visibility in PIR entering 2026? Yeah, I think as we've spoken about in the past also, with several of our clients, we're working very closely. We're taking measures to secure material and secure scalability so we can act as orders materialize. I think if you look on the announcements we've done in the past and the lead time from we announce until we say we should deliver, which is quite narrow, that's an indicator of what you could say is the visibility if you look from an order backlog perspective. The visibility for us to make decisions and to be prepared, having sharing and working closely with these clients is for us satisfying. It remains that we need to work together to prepare so that the time from announcing an order until we deliver is an agile way of running NORBIT. What is the potential for onboarding new customers in the PIR segment, or are you expecting existing customers to demand all of the production capacity in the short term? For us, we are working to onboard new customers, but very cherry-picking when looking at what kind of customers that fits into this. It needs to be some customers where they see the advantage of having NORBIT as a scaling partner rather than just an alternative for any other EMS. With the capacity build-up we have done and are doing, we plan to invite others also to join the party. A question on our partnership with mechanicals, Aursund Maskinering and NOMEK. What are your ambitions here and what's the driver that led you to invest in that partnership? Yeah, so three years ago, NORBIT acquired a small mechanical factory in Trondheim running with five-axis milling machines, etc., doing components to our sonars. The founder of that company was about to retire and looking for some new owners. We were by far the largest customer. For NORBIT, this is important capacity to have. It's not very important for NORBIT to have mechanical factories as part of our full operation, but it's important capacity to have. When we saw how could we grow this and ensure that this grows with NORBIT. It should then also be in a position where it could grow on other clients so that NORBIT is not too large part of the full operation. That is why we saw this other factory in Trondheim, NOMEK, doing very much the same. We saw that this is a good fit for some consolidation. NORBIT is not in a need of being a controlling owner. We would like to be a strategic owner to ensure that the necessary preparedness is in the strategy of this supplier. We teamed up with a local investor. They have 51% of the shares and NORBIT 49% of this merged operation between the factory we had and this NOMEK. We work together now on the owner level to have some ambitions for this factory to lift out from regional focus to a Nordic focus. I think that will be good for securing supply and scalability for NORBIT in the long term. A question on valuation multiples for potential targets. Does that make it more challenging to execute acquisitions? I mean, it's not the valuation multiples or the expectations on the valuation multiples that necessarily makes us, or sort of is the reason why we haven't announced an acquisition itself. I think it's more relating to the fact that we haven't found the right company to invest in. We have spent a lot of time trying to educate on what we are looking for and what are the criteria that need to be fulfilled in order for us to do an investment. It has to do with culture fit with the target. It has to do with accretion, of course. Multiples are, of course, one of the criteria. It also has to be relevant to the strategy that we are pursuing in which we are building a technology company. It has to be related to advanced technology. Finding those companies is not easy. I mean, it's quite challenging. We'd rather spend time maturing those ideas. The list of ideas is quite long, but it's far from ideas to actually put your pen on the paper. That's why it's taking time. We will make sure to announce any investment when it comes. Not for today, maybe for tomorrow. Okay. When it comes to AI, is that something you use or can you start to use in your business? Yeah, that's the question. AI is important in our business. It's important in our administrative operation of the business. We have seen good advantage of using that technology, for instance, in the HR domain where we have built routines, which is much more effective and self-service solutions, reducing the need for increasing staffing in that part. In the products also, you can imagine working with image processing and target recognition. AI is very suitable for that. Yeah, that is very relevant for us. Last question. Could you guide on consultancy fees related to M&A for this year? I think that is close to zero. I mean, we do not use necessarily consultants to map out our M&A ideas. We have an internal team for that, which is also driving the project through the execution phase and also is working in the integration phase if we decide to invest in a company. We try to limit those costs to a bare minimum of what we need to drive those ideas forward. Maybe to add to that, one of the advantages we see of having an in-house team working with M&A is that they can also be very relevant working on strategy for the business units. They are living the NORBIT life every day and understand the NORBIT DNA and becoming even more relevant in the M&A work as well. Could you provide some guidance on the effects of tariffs? I suppose this is the U.S. tariffs on the results year-to-date. We have not seen any material impact of tariffs in the Oceans business. When it comes to our revenue composition, we have virtually no sales to the U.S. in Connectivity and in PIR. We do have exposure in Oceans. The U.S. is, of course, one important market for us. As of this year, and also as we stated in the report in Q3, Americas was quite a strong region for us and was actually showing the highest growth year on year in the Oceans segment. We do not think, or we have not seen any impact in the numbers of the tariffs per se. I think that summarizes the question to that end unless you want to add something. Okay. Is increased geopolitical uncertainty driving higher demand for your R&D services? And does your PIR customers typically start out as R&D clients before transitioning to contract manufacturing? I think this geopolitical unrest creates more demand in the long term, both for designed in Europe and made in Europe. In our factories in the contract manufacturing, we have clients that have done the R&D work themselves. We have clients that have been utilizing the NORBIT R&D pool also. It is a mix. What drove the increased Oceans sales to the Americas in the quarter? It is a mix of different drivers. I think it is hard to pinpoint the sort of exact driver or one driver. It is many things. As Per Jørgen said in his presentation, I mean, one large order could also impact a quarter. Generally, we are seeing quite good momentum in the Americas region. We are making progress in all regions, being North America and South America. I think, again, it is a mix of different drivers, but also good business development efforts by the team in the Americas region. Yeah. I'd just like to, for those that haven't been on our webpage, looking on the Oceans part of the webpage, there are a lot of videos showing different applications, different use cases that's made together with some of our clients. I recommend that you have a look to that as well. Are the core chips used in the PIR segment proprietary to NORBIT design or primarily off-the-shelf components integrated into your own modules? When it comes to chip design, this is very limited activity in NORBIT. We do have very few NORBIT proprietary chips. Where we have that is in the Connectivity domain. For all the rest, it's components off-the-shelf from a global market. Yeah. Maybe to remind that the PIR segment is R&D services partly, but mostly contract manufacturing. In the contract manufacturing part, we are not the product owner. We rely on the design of our customers and do the manufacturing as one of our services. Of the 4% decline in the gross margin, how much is attributed to mix effect and how much was obsolescence provisions in Oceans? Should investors view these effects as one-offs or recurring going forward? I won't necessarily comment on the split between the two. What I can say is that the gross margin in Oceans has been quite stable. It fluctuates some percentage points up and down, but largely it's been in the area 72%-74%. Today, we are reporting 71%. It is not a material change. In Q3 last year, we also had a quite large rental project having installed surveillance sonars in the Seine during the Olympics. That has a very good margin. It made the 75% be a quite tough comparable this quarter, at least. I think you should look at the margin over time and sort of extrapolate an average based on that to indicate what the normalized margin in Oceans is as we see it. You highlight a NOK 120 million contract post-quarter defense sector following an earlier NOK 100 million award. Can you confirm whether the full NOK 220 million is tied to defense customers or if the NOK 100 million contract was unrelated to that sector? No, this was related. It is the same client space. It is just that the separate orders were not in a scale that it was above the threshold we have for making stock announcements. Are sales to AUV customers becoming material for Oceans? It seems you are involved in a lot of exciting projects. Sorry, could you repeat that? Yeah, sure. Are sales to AUV customers becoming a material part for Oceans? It seems you are involved in a lot of exciting projects. Yeah. Yeah. That is a very relevant driver. And it is a significant or it is a relevant part of the business and the numbers presented also. I think still it is more to come. I agree. It is a lot of interesting things going on and a lot of interest all over the globe for different kinds of solutions. I think, I mean, the headline macro on this, the globe is covered 70% by water and only 5%, 6% has been explored. How can we explore all this? Autonomy is an important part of the answer. Final question. Do you have any plan to get more recurring income? It depends what you mean of recurring income. I would say we do have some recurring income based on having a high degree of repeat clients. If the question is that if we are aiming to have more subscription-based revenues, I think so when we come back in February and we present how this year ended and we will announce what we aim for in 2026. Also, when we come back after the summer and probably announce our 2030 target, I think also looking to 2030, NORBIT will very much be a company where the invoices are based on a number of units mainly. As with the iWBMS X, where it is now possible to pay to get some upgrades, software components are increasing. The subscription-based revenue part of Connectivity, which we have from our daughter company Norbit iData, is expected to grow. In a world where AI generates more code more efficiently, we think it's also good to remain a hardware company to be delivering hardware that the software could run on. Good. Oh, final question here. Do you expect new GNSS On-Board Unit orders to come in the near term? What is the addressable market for the product? Yeah. I think the addressable market for the product, that's the European market. In Europe, there are 6.5 million commercial trucks on the road. Over the last 10 years, there is an average of around 400,000 trucks being made per year. More and more countries are picking up according to the push from the European Union to finance roads by having the truck driver to pay per driven kilometer. My understanding is, I'm not an analyst, but my understanding is when European countries are doubling their investments in defense equipment, the need for financing roads is increasing. This is a preferred way of doing it. We are now working with the leading player in this market. We have been in this domain for many years. It seems like our reputation in the market is good. Probably we should be able to take a good part of this business. I think maybe that is our take on that. Maybe to add to that, you also said in the presentation that we have delivered approximately 2 million enforcement modules for these GNSS On-Board Units over the last five years. That also says something about the potential market in this. That is prior to any replacement. Okay. That was the final question. Thanks a lot for good and interesting questions. Thank you to all that took the time to follow this presentation.

Speaker 1: Good morning and welcome to the presentation of NORBIT's Third Quarter Results. It's a privilege to be allowed to present the result of what our dedicated colleagues have achieved. As you will see, after the first nine months of the year, we're delivering revenues at par with what we did for the full year last year and with nearly a doubling of the result. For us, this is encouraging and helps us to go to work every day and ensure that we deliver on the expectations our customers have. Let's dive into the numbers. As you see, Q3, as always, is somewhat weaker than the other quarters. Still, Q3 2024 is the best Q3 ever for NORBIT. We came in with revenues on NOK 505 million, which is a 36% increase from last year, with a margin of 15%, giving NOK 75 million in EBIT. Good morning and welcome to the presentation of NORBIT's Third Quarter Results. good morning and welcome to the presentation of norbit's third quarter results It's a privilege to be allowed to present the result of what our dedicated colleagues have achieved. it's a privilege to be allowed to present the result of what our dedicated colleagues have achieved As you will see, after the first nine months of the year, we're delivering revenues at par with what we did for the full year last year and with nearly a doubling of the result. as you will see after the first nine months of the year we're delivering revenues at par with what we did for the full year last year and with nearly a doubling of the result For us, this is encouraging and helps us to go to work every day and ensure that we deliver on the expectations our customers have. for us this is encouraging and helps us to go to work every day and ensure that we deliver on the expectations our customers have Let's dive into the numbers. let's dive into the numbers As you see, Q3, as always, is somewhat weaker than the other quarters. as you see q3 as always is somewhat weaker than the other quarters Still, Q3 2024 is the best Q3 ever for NORBIT. still q3 2024 is the best q3 ever for norbit We came in with revenues on NOK 505 million, which is a 36% increase from last year, with a margin of 15%, giving NOK 75 million in EBIT. we came in with revenues on nok 505 million which is a 36% increase from last year with a margin of 15% giving nok 75 million in ebit As I already said, for the first nine months of the year, we are delivering at par of what we did for the full year last year, NOK 1.7 billion, up 43%. It is growth in all three business segments, with an EBIT of NOK 377 million, which is 92% higher than what we had for the same period last year. That represents a margin of 22%. Some other events, we have announced some new contracts in the PIR segment towards the defense and security sector. It is a NOK 120 million contract. In that announcement, we also said that we have had accumulated smaller orders, which also summed up to NOK 100 million. Yesterday, our eminent board of directors decided to resolve an extraordinary dividend of NOK 3 per share. Looking into the different segments, Oceans has some seasonality. It is vacation season in Q3. As I already said, for the first nine months of the year, we are delivering at par of what we did for the full year last year, NOK 1.7 billion, up 43%. as i already said for the first nine months of the year we are delivering at par of what we did for the full year last year nok 1.7 billion up 43% It is growth in all three business segments, with an EBIT of NOK 377 million, which is 92% higher than what we had for the same period last year. it is growth in all three business segments with an ebit of nok 377 million which is 92% higher than what we had for the same period last year That represents a margin of 22%. that represents a margin of 22% Some other events, we have announced some new contracts in the PIR segment towards the defense and security sector. some other events, we have announced some new contracts in the pir segment towards the defense and security sector It is a NOK 120 million contract. it is a nok 120 million contract In that announcement, we also said that we have had accumulated smaller orders, which also summed up to NOK 100 million. in that announcement we also said that we have had accumulated smaller orders which also summed up to nok 100 million Yesterday, our eminent board of directors decided to resolve an extraordinary dividend of NOK 3 per share. yesterday our eminent board of directors decided to resolve an extraordinary dividend of nok 3 per share Looking into the different segments, Oceans has some seasonality. It is vacation season in Q3. looking into the different segments oceans has some seasonality. it is vacation season in q3 Still, nearly NOK 200 million, so NOK 192 million in revenues. That represents an increase of 22% from last year. EBIT margin of 21% compared to 19%. For the first nine months, we've delivered NOK 665 million in revenues. That's an increase of 40% and an accumulated margin of 32%, which is a good increase from the 25% we had for the corresponding period the year before. As you can see, from Q3 2022, in NORBIT, quarterly fluctuation is expected. Some of what we deliver in the Oceans segment is high-priced, high-value products. Some units in or out of a quarter will affect the numbers, in addition to the underlying seasonality. Still, nearly NOK 200 million, so NOK 192 million in revenues. still nearly nok 200 million so nok 192 million in revenues That represents an increase of 22% from last year. that represents an increase of 22% from last year EBIT margin of 21% compared to 19%. ebit margin of 21% compared to 19% For the first nine months, we've delivered NOK 665 million in revenues. for the first nine months we've delivered nok 665 million in revenues That's an increase of 40% and an accumulated margin of 32%, which is a good increase from the 25% we had for the corresponding period the year before. that's an increase of 40% and an accumulated margin of 32% which is a good increase from the 25% we had for the corresponding period the year before As you can see, from Q3 2022, in NORBIT, quarterly fluctuation is expected. as you can see from q3 2022 in norbit quarterly fluctuation is expected Some of what we deliver in the Oceans segment is high-priced, high-value products. some of what we deliver in the oceans segment is high-priced high-value products Some units in or out of a quarter will affect the numbers, in addition to the underlying seasonality. some units in or out of a quarter will affect the numbers in addition to the underlying seasonality Diving into what's behind these numbers, this is year-to-date figures for the first nine months, 2023, first nine months, 2024, and 2025, showing that the WINGHEAD sales is somewhat higher this year than it was last year, NOK 120 million, and a very good growth in other sonars. This is very much driven by increased sales of the iWBMS X, which we launched this year. I could remind you what this is. That's a sonar which is fully equipped with all thinkable hardware features for such a sonar. You can buy software features to upgrade according to your need. It looks like our clients really appreciate this offering, that they could buy a sonar which enables them later to buy a software upgrade for additional functionality. That's been good. Sub-bottom profilers, NOK 66 million. Diving into what's behind these numbers, this is year-to-date figures for the first nine months, 2023, first nine months, 2024, and 2025, showing that the WINGHEAD sales is somewhat higher this year than it was last year, NOK 120 million, and a very good growth in other sonars. diving into what's behind these numbers this is year-to-date figures for the first nine months 2023 first nine months 2024 and 2025 showing that the winghead sales is somewhat higher this year than it was last year, nok 120 million and a very good growth in other sonars This is very much driven by increased sales of the iWBMS X, which we launched this year. this is very much driven by increased sales of the iwbms x which we launched this year I could remind you what this is. i could remind you what this is That's a sonar which is fully equipped with all thinkable hardware features for such a sonar. that's a sonar which is fully equipped with all thinkable hardware features for such a sonar You can buy software features to upgrade according to your need. you can buy software features to upgrade according to your need It looks like our clients really appreciate this offering, that they could buy a sonar which enables them later to buy a software upgrade for additional functionality. it looks like our clients really appreciate this offering that they could buy a sonar which enables them later to buy a software upgrade for additional functionality That's been good. that's been good Sub-bottom profilers, NOK 66 million. sub-bottom profilers nok 66 million Yeah, and still on the security side, which we remain very positive for in the long run, it's lower than our ambitions, but ambition remains as high as it has been. The Connectivity segment, its revenues are at par with Q3 last year, NOK 108 million compared to NOK 111 million. The decline is due to some rescheduling of On-Board Units, and some of the revenues that we were aiming to have in Q3 have been slipping into Q4. For the first nine months, we have accumulated a 70% increase, so NOK 423 million. I'll show you the split afterwards. That's a margin of 27% for the accumulated year-to-date numbers. As you see on the revenue split, the On-Board Units, it's the toll tags for mainly passenger cars, it's somewhat lower than it was last year. It's good growth on the enforcement modules for tachographs. Yeah, and still on the security side, which we remain very positive for in the long run, it's lower than our ambitions, but ambition remains as high as it has been. yeah and still on the security side which we remain very positive for in the long run it's lower than our ambitions but ambition remains as high as it has been The Connectivity segment, its revenues are at par with Q3 last year, NOK 108 million compared to NOK 111 million. the connectivity segment its revenues are at par with q3 last year, nok 108 million compared to nok 111 million The decline is due to some rescheduling of On-Board Units, and some of the revenues that we were aiming to have in Q3 have been slipping into Q4. the decline is due to some rescheduling of on-board units and some of the revenues that we were aiming to have in q3 have been slipping into q4 For the first nine months, we have accumulated a 70% increase, so NOK 423 million. for the first nine months we have accumulated a 70% increase so nok 423 million I'll show you the split afterwards. i'll show you the split afterwards That's a margin of 27% for the accumulated year-to-date numbers. that's a margin of 27% for the accumulated year-to-date numbers As you see on the revenue split, the On-Board Units, it's the toll tags for mainly passenger cars, it's somewhat lower than it was last year. as you see on the revenue split the on-board units it's the toll tags for mainly passenger cars it's somewhat lower than it was last year It's good growth on the enforcement modules for tachographs. it's good growth on the enforcement modules for tachographs The rest, also a little bit growth or stable. Some status on the product. We were awarded the contract in April last year for making a complete new satellite-based tolling unit for trucks, so-called 4G-based GNSS On-Board Units. It is a NOK 160 million contract. This contract is for supply of units to the European leader in this electronic toll collection system, so Toll4Europe. Volume production started in October. It is then 18 months from being awarded this contract, running through the R&D phase, industrialization, assembly of a full robotic line, and scaling up that. I think it is a good job done from our colleagues. Ambition was to do it even in a shorter period. It is satisfying to see that finally we are running a high-volume assembly line in our Røros factory. The rest, also a little bit growth or stable. the rest also a little bit growth or stable Some status on the product. some status on the product We were awarded the contract in April last year for making a complete new satellite-based tolling unit for trucks, so-called 4G-based GNSS On-Board Units. we were awarded the contract in april last year for making a complete new satellite-based tolling unit for trucks so-called 4g-based gnss on-board units It is a NOK 160 million contract. it is a nok 160 million contract This contract is for supply of units to the European leader in this electronic toll collection system, so Toll4Europe. this contract is for supply of units to the european leader in this electronic toll collection system so toll4europe Volume production started in October. volume production started in october It is then 18 months from being awarded this contract, running through the R&D phase, industrialization, assembly of a full robotic line, and scaling up that. it is then 18 months from being awarded this contract running through the r&d phase industrialization assembly of a full robotic line and scaling up that I think it is a good job done from our colleagues. i think it is a good job done from our colleagues Ambition was to do it even in a shorter period. ambition was to do it even in a shorter period It is satisfying to see that finally we are running a high-volume assembly line in our Røros factory. it is satisfying to see that finally we are running a high-volume assembly line in our røros factory This product is very much in line with our strategy to broaden both customer base and product offering. We are eager to see how this evolves as the existing fleet of GNSS On-Board Units in European trucks is very much based on 2G GSM. As we see European countries are planning to phase out the 2G GSM network, we see that there is a need for replacement of the existing fleet in addition to the underlying growth in the market. Segment, product innovation and realization. Also, I'd like to remind you, NORBIT is a very much vertically integrated company where we've believed in for many, many years that making the product, doing the production also in Europe and in Norway, in addition to designing the products, is a good thing to do. We've seen that some spare capacity in our factories. This product is very much in line with our strategy to broaden both customer base and product offering. this product is very much in line with our strategy to broaden both customer base and product offering We are eager to see how this evolves as the existing fleet of GNSS On-Board Units in European trucks is very much based on 2G GSM. we are eager to see how this evolves as the existing fleet of gnss on-board units in european trucks is very much based on 2g gsm As we see European countries are planning to phase out the 2G GSM network, we see that there is a need for replacement of the existing fleet in addition to the underlying growth in the market. as we see european countries are planning to phase out the 2g gsm network we see that there is a need for replacement of the existing fleet in addition to the underlying growth in the market Segment, product innovation and realization. segment product innovation and realization Also, I'd like to remind you, NORBIT is a very much vertically integrated company where we've believed in for many, many years that making the product, doing the production also in Europe and in Norway, in addition to designing the products, is a good thing to do. also i'd like to remind you norbit is a very much vertically integrated company where we've believed in for many many years that making the product doing the production also in europe and in norway in addition to designing the products is a good thing to do We've seen that some spare capacity in our factories. we've seen that some spare capacity in our factories We've decided to offer on contract manufacturing terms to other technology companies, industrial technology companies. For a selection of such clients, we're acting as a scaling industrial partner. It is very satisfying to see that we have really been able to scale. Some of the investments we've done have really helped us. We announced earlier this year that from April, we installed a new line for surface mounting of electronic components in our Røros factory. This is said to be Europe's fastest SMT line. That is good. It has been running. We have an increase from NOK 114 million in revenues in Q3 2024 up to NOK 224 million. It is a high increase and a good margin improvement showing the scalability in this business with operational leverage. A lot of the indirect resources needed to run this is very much shared between the different segments. We've decided to offer on contract manufacturing terms to other technology companies, industrial technology companies. we've decided to offer on contract manufacturing terms to other technology companies industrial technology companies For a selection of such clients, we're acting as a scaling industrial partner. for a selection of such clients we're acting as a scaling industrial partner It is very satisfying to see that we have really been able to scale. it is very satisfying to see that we have really been able to scale Some of the investments we've done have really helped us. some of the investments we've done have really helped us We announced earlier this year that from April, we installed a new line for surface mounting of electronic components in our Røros factory. we announced earlier this year that from april we installed a new line for surface mounting of electronic components in our røros factory This is said to be Europe's fastest SMT line. this is said to be europe's fastest smt line That is good. that is good It has been running. it has been running We have an increase from NOK 114 million in revenues in Q3 2024 up to NOK 224 million. we have an increase from nok 114 million in revenues in q3 2024 up to nok 224 million It is a high increase and a good margin improvement showing the scalability in this business with operational leverage. it is a high increase and a good margin improvement showing the scalability in this business with operational leverage A lot of the indirect resources needed to run this is very much shared between the different segments. a lot of the indirect resources needed to run this is very much shared between the different segments For the first nine months of 2025, we've accumulated revenues of nearly NOK 680 million, which is a 72% increase from the same period last year. It's an EBIT margin of 18%, which is double of the nine we had for the first nine months in 2024. As you can see from this split, the defense and security sector is really the reason why this is growing. As you can see also, some of the clients in the automotive industry and some industrial, we have sort of not fully phased out, but we have not been very active getting new. I think I've said it before also, that some clients we've been helping to move to other factories to free up capacity for these new scaling partners. For the first nine months of 2025, we've accumulated revenues of nearly NOK 680 million, which is a 72% increase from the same period last year. for the first nine months of 2025 we've accumulated revenues of nearly nok 680 million which is a 72% increase from the same period last year It's an EBIT margin of 18%, which is double of the nine we had for the first nine months in 2024. it's an ebit margin of 18% which is double of the nine we had for the first nine months in 2024 As you can see from this split, the defense and security sector is really the reason why this is growing. as you can see from this split the defense and security sector is really the reason why this is growing As you can see also, some of the clients in the automotive industry and some industrial, we have sort of not fully phased out, but we have not been very active getting new. as you can see also some of the clients in the automotive industry and some industrial we have sort of not fully phased out but we have not been very active getting new I think I've said it before also, that some clients we've been helping to move to other factories to free up capacity for these new scaling partners. i think i've said it before also that some clients we've been helping to move to other factories to free up capacity for these new scaling partners Capacity, I mentioned and reminded you of this investment of the new SMT line in our Røros factory. We are also increasing the floor space of our Serbia factory, very good cooperation with the local municipality. They are responsible for project execution and financing of this expansion, which is coupled to our existing plant. Completion, year-end. A new SMT line is ordered and will be installed in this facility in January. This is very good. We see that it helps us even increase capacity more. We have an option to acquire ownership of the facility if we decide to do so. With that, I'll leave the floor for Per Kristian to give you some more details of the financial figures. Capacity, I mentioned and reminded you of this investment of the new SMT line in our Røros factory. capacity i mentioned and reminded you of this investment of the new smt line in our røros factory We are also increasing the floor space of our Serbia factory, very good cooperation with the local municipality. we are also increasing the floor space of our serbia factory very good cooperation with the local municipality They are responsible for project execution and financing of this expansion, which is coupled to our existing plant. they are responsible for project execution and financing of this expansion which is coupled to our existing plant Completion, year-end. completion year-end A new SMT line is ordered and will be installed in this facility in January. a new smt line is ordered and will be installed in this facility in january This is very good. this is very good We see that it helps us even increase capacity more. we see that it helps us even increase capacity more We have an option to acquire ownership of the facility if we decide to do so. we have an option to acquire ownership of the facility if we decide to do so With that, I'll leave the floor for Per Kristian to give you some more details of the financial figures. with that i'll leave the floor for per kristian to give you some more details of the financial figures

Speaker 2: Thank you, Per Jørgen. I will spend some minutes walking you through the highlights of the quarter. Thank you, Per Jørgen. thank you per jørgen I will spend some minutes walking you through the highlights of the quarter. i will spend some minutes walking you through the highlights of the quarter Revenues came in at NOK 505.4 million, an increase of 36% from the corresponding quarter of 2024, with Oceans and PIR contributing to the growth. While Connectivity reported a 3% decline in revenues on a NOK 15 million post-movement of onboard units to the fourth quarter. EBITDA for the quarter was NOK 114.7 million, representing a margin of 23%. This compares to NOK 86.6 million and the same margin in the third quarter of 2024. Operating profit was NOK 75.4 million, translating into a margin of 15%. This compares to NOK 53.7 million and a margin of 14% in the third quarter of last year. Net finance expenses were negative NOK 6.5 million, largely explained by NOK 8 million in net interest expenses, partly offset by foreign exchange gains. Tax expenses, NOK 17.2 million, while net income for the period was NOK 51.8 million, translating into an earnings per share of NOK 0.81. Revenues came in at NOK 505.4 million, an increase of 36% from the corresponding quarter of 2024, with Oceans and PIR contributing to the growth. revenues came in at nok 505.4 million an increase of 36% from the corresponding quarter of 2024 with oceans and pir contributing to the growth While Connectivity reported a 3% decline in revenues on a NOK 15 million post-movement of onboard units to the fourth quarter. while connectivity reported a 3% decline in revenues on a nok 15 million post-movement of onboard units to the fourth quarter EBITDA for the quarter was NOK 114.7 million, representing a margin of 23%. ebitda for the quarter was nok 114.7 million representing a margin of 23% This compares to NOK 86.6 million and the same margin in the third quarter of 2024. this compares to nok 86.6 million and the same margin in the third quarter of 2024 Operating profit was NOK 75.4 million, translating into a margin of 15%. operating profit was nok 75.4 million translating into a margin of 15% This compares to NOK 53.7 million and a margin of 14% in the third quarter of last year. this compares to nok 53.7 million and a margin of 14% in the third quarter of last year Net finance expenses were negative NOK 6.5 million, largely explained by NOK 8 million in net interest expenses, partly offset by foreign exchange gains. net finance expenses were negative nok 6.5 million largely explained by nok 8 million in net interest expenses partly offset by foreign exchange gains Tax expenses, NOK 17.2 million, while net income for the period was NOK 51.8 million, translating into an earnings per share of NOK 0.81. tax expenses, nok 17.2 million while net income for the period was nok 51.8 million translating into an earnings per share of nok 0.81 In the third quarter, Oceans delivered 22% revenue growth. Sonar sales were strong, particularly in the Americas region. We continue to see strong sales of the new WBMS X sonar platform that was launched earlier this year. On the negative side, sales in security and for sub-bottom profilers were slow in the third quarter. Oceans' gross margin declined 4 percentage points year-over-year due to lower sales of rental, training, and consultancy services, as well as obsolescence provisions. Payroll and operating expenses increased NOK 7.2 million on new hires, wage inflation, and use of external consultants. In total, the EBIT result came in at NOK 41.3 million, up from NOK 30.7 million in the same period of last year. Connectivity, as mentioned, delivered a 3% revenue decrease. Compared to the last year, revenues declined primarily due to lower volumes of On-Board Units sold. In the third quarter, Oceans delivered 22% revenue growth. in the third quarter oceans delivered 22% revenue growth Sonar sales were strong, particularly in the Americas region. sonar sales were strong particularly in the americas region We continue to see strong sales of the new WBMS X sonar platform that was launched earlier this year. we continue to see strong sales of the new wbms x sonar platform that was launched earlier this year On the negative side, sales in security and for sub-bottom profilers were slow in the third quarter. on the negative side sales in security and for sub-bottom profilers were slow in the third quarter Oceans' gross margin declined 4 percentage points year- over- year due to lower sales of rental, training, and consultancy services, as well as obsolescence provisions. oceans' gross margin declined 4 percentage points year- over- year due to lower sales of rental training and consultancy services as well as obsolescence provisions Payroll and operating expenses increased NOK 7.2 million on new hires, wage inflation, and use of external consultants. payroll and operating expenses increased nok 7.2 million on new hires wage inflation and use of external consultants In total, the EBIT result came in at NOK 41.3 million, up from NOK 30.7 million in the same period of last year. in total the ebit result came in at nok 41.3 million up from nok 30.7 million in the same period of last year Connectivity, as mentioned, delivered a 3% revenue decrease. connectivity as mentioned delivered a 3% revenue decrease Compared to the last year, revenues declined primarily due to lower volumes of On-Board Units sold. compared to the last year revenues declined primarily due to lower volumes of on-board units sold Again, mention that deliveries worth NOK 15 million were postponed to the fourth quarter. The decline was partly offset by an increase in volume sold of enforcement modules for satellite-based tolling units. The gross margin fell 4 percentage points on product mix and scrapping costs. Operating expenses, including payroll, increased NOK 3 million year-over-year. The EBIT result for the quarter came in at NOK 16.6 million, down from NOK 28.1 million in the third quarter of 2024. PIR posted a significant improvement in revenues, close to a doubling from the third quarter of last year, primarily driven by increasing demand from the defense clients in the defense and security sector. Gross margin came down 1 percentage point, while payroll and operating expenses increased NOK 13.6 million on new hires, wage inflation, and activity-related costs. Again, mention that deliveries worth NOK 15 million were postponed to the fourth quarter. again mention that deliveries worth nok 15 million were postponed to the fourth quarter The decline was partly offset by an increase in volume sold of enforcement modules for satellite-based tolling units. the decline was partly offset by an increase in volume sold of enforcement modules for satellite-based tolling units The gross margin fell 4 percentage points on product mix and scrapping costs. the gross margin fell 4 percentage points on product mix and scrapping costs Operating expenses, including payroll, increased NOK 3 million year- over- year. operating expenses including payroll increased nok 3 million year- over- year The EBIT result for the quarter came in at NOK 16.6 million, down from NOK 28.1 million in the third quarter of 2024. the ebit result for the quarter came in at nok 16.6 million down from nok 28.1 million in the third quarter of 2024 PIR posted a significant improvement in revenues, close to a doubling from the third quarter of last year, primarily driven by increasing demand from the defense clients in the defense and security sector. pir posted a significant improvement in revenues close to a doubling from the third quarter of last year primarily driven by increasing demand from the defense clients in the defense and security sector Gross margin came down 1 percentage point, while payroll and operating expenses increased NOK 13.6 million on new hires, wage inflation, and activity-related costs. gross margin came down 1 percentage point while payroll and operating expenses increased nok 13.6 million on new hires wage inflation and activity-related costs The EBIT result for the quarter was NOK 40.5 million in the quarter, up from NOK 12.2 million in the same period of last year. Turning to the balance sheet. Property, plant, and equipment, including rights of use assets, increased NOK 36.5 million in the quarter. This is primarily due to investments in capacity expansion on surface mounting machinery. Intangible assets rose approximately NOK 9 million, explained by our R&D investments, while trade receivables were down NOK 16.5 million, explained by the sequential revenue decline from the second quarter. Inventories rose NOK 92.7 million. This is explained by sourcing of components to prepare for the significant activity increase we expect in fourth quarter, including delivery of the GNSS On-Board Unit and defense and security-related products within the PIR segment, hence referring to our outlook section, which we will come back to in a few minutes. The EBIT result for the quarter was NOK 40.5 million in the quarter, up from NOK 12.2 million in the same period of last year. the ebit result for the quarter was nok 40.5 million in the quarter up from nok 12.2 million in the same period of last year Turning to the balance sheet. turning to the balance sheet Property, plant, and equipment, including rights of use assets, increased NOK 36.5 million in the quarter. property plant and equipment including rights of use assets increased nok 36.5 million in the quarter This is primarily due to investments in capacity expansion on surface mounting machinery. this is primarily due to investments in capacity expansion on surface mounting machinery Intangible assets rose approximately NOK 9 million, explained by our R&D investments, while trade receivables were down NOK 16.5 million, explained by the sequential revenue decline from the second quarter. intangible assets rose approximately nok 9 million explained by our r&d investments while trade receivables were down nok 16.5 million explained by the sequential revenue decline from the second quarter Inventories rose NOK 92.7 million. inventories rose nok 92.7 million This is explained by sourcing of components to prepare for the significant activity increase we expect in fourth quarter, including delivery of the GNSS On-Board Unit and defense and security-related products within the PIR segment, hence referring to our outlook section, which we will come back to in a few minutes. this is explained by sourcing of components to prepare for the significant activity increase we expect in fourth quarter including delivery of the gnss on-board unit and defense and security-related products within the pir segment hence referring to our outlook section which we will come back to in a few minutes Net interest-bearing debt stood at NOK 320.5 million at the end of August, an increase from NOK 274 million at the end of the previous quarter. Our equity ratio was 50%, which is on par with what we reported the last quarter. We continued to strengthen our liquidity position in the quarter by increasing our multicurrency order facility by NOK 150 million, subsequent to 30.09, so that the pro forma liquidity stood at close to NOK 830 million. Our balance sheet continues to remain rock solid, with a net interest-bearing debt to EBITDA ratio of 0.7x at the end of the third quarter. Due to our strong balance sheet, financial position, and the solid outlook, the board has resolved to distribute an extraordinary cash dividend of NOK 3 per share for the financial year 2024. Net interest-bearing debt stood at NOK 320.5 million at the end of August, an increase from NOK 274 million at the end of the previous quarter. net interest-bearing debt stood at nok 320.5 million at the end of august an increase from nok 274 million at the end of the previous quarter Our equity ratio was 50%, which is on par with what we reported the last quarter. our equity ratio was 50% which is on par with what we reported the last quarter We continued to strengthen our liquidity position in the quarter by increasing our multicurrency order facility by NOK 150 million, subsequent to 30.09, so that the pro forma liquidity stood at close to NOK 830 million. we continued to strengthen our liquidity position in the quarter by increasing our multicurrency order facility by nok 150 million subsequent to 30.09 so that the pro forma liquidity stood at close to nok 830 million Our balance sheet continues to remain rock solid, with a net interest-bearing debt to EBITDA ratio of 0.7 x at the end of the third quarter. our balance sheet continues to remain rock solid with a net interest-bearing debt to ebitda ratio of 0.7 x at the end of the third quarter Due to our strong balance sheet, financial position, and the solid outlook, the board has resolved to distribute an extraordinary cash dividend of NOK 3 per share for the financial year 2024. due to our strong balance sheet financial position and the solid outlook the board has resolved to distribute an extraordinary cash dividend of nok 3 per share for the financial year 2024 Considering we are currently below the long-term target range of the financial policy, the dividend distribution is also very much in line with the policy of returning excess cash to the shareholders. The dividend will be paid out from NORBIT in approximately two weeks from now. Lastly, cash flow for the quarter. Cash flow from operations was NOK 1.9 million negative, explained by an EBITDA of NOK 114.7 million, a net increase in working capital of NOK 95.8 million, taxes paid of NOK 14.4 million, and NOK 6.5 million in net finance expenses. We invested NOK 40.8 million in the quarter, explained by approximately NOK 30 million R&D investments and NOK 11 million in machinery and equipment. The R&D investment level for 2025 is still expected to be between NOK 130 million-NOK 140 million, and there are no changes to the machinery and equipment investment guidance of around NOK 120 million for the full year. Considering we are currently below the long-term target range of the financial policy, the dividend distribution is also very much in line with the policy of returning excess cash to the shareholders. considering we are currently below the long-term target range of the financial policy the dividend distribution is also very much in line with the policy of returning excess cash to the shareholders The dividend will be paid out from NORBIT in approximately two weeks from now. the dividend will be paid out from norbit in approximately two weeks from now Lastly, cash flow for the quarter. lastly cash flow for the quarter Cash flow from operations was NOK 1.9 million negative, explained by an EBITDA of NOK 114.7 million, a net increase in working capital of NOK 95.8 million, taxes paid of NOK 14.4 million, and NOK 6.5 million in net finance expenses. cash flow from operations was nok 1.9 million negative explained by an ebitda of nok 114.7 million a net increase in working capital of nok 95.8 million taxes paid of nok 14.4 million and nok 6.5 million in net finance expenses We invested NOK 40.8 million in the quarter, explained by approximately NOK 30 million R&D investments and NOK 11 million in machinery and equipment. we invested nok 40.8 million in the quarter explained by approximately nok 30 million r&d investments and nok 11 million in machinery and equipment The R&D investment level for 2025 is still expected to be between NOK 130 million-NOK 140 million, and there are no changes to the machinery and equipment investment guidance of around NOK 120 million for the full year. the r&d investment level for 2025 is still expected to be between nok 130 million-nok 140 million and there are no changes to the machinery and equipment investment guidance of around nok 120 million for the full year Cash inflow from financing activities was NOK 11.9 million in the quarter. With that, that summarizes the financial section, and I will give the floor back to Per Jørgen for the outlook part of the presentation. Cash inflow from financing activities was NOK 11.9 million in the quarter. cash inflow from financing activities was nok 11.9 million in the quarter With that, that summarizes the financial section, and I will give the floor back to Per Jørgen for the outlook part of the presentation. with that that summarizes the financial section and i will give the floor back to per jørgen for the outlook part of the presentation

Speaker 1: Thank you, Per Kristian. Starting this year, we had a target of delivering NOK 2.2 billion-NOK 2.3 billion in revenues. When we presented the first half-year results, we raised that target to NOK 2.5 billion-NOK 2.6 billion. This remains our target for the full year. We expect revenues in that range. With that, we expect an EBIT margin between 24% and 25% for the full year. As you see, Q4, as always, is a hectical quarter, and this is expected also for 2025. In the different segments, the three last months is typically the strongest in Oceans. Some of this is related to what we would call, in quotes, "budget flushing." Thank you, Per Kristian. thank you per kristian Starting this year, we had a target of delivering NOK 2.2 billion-NOK 2.3 billion in revenues. starting this year we had a target of delivering nok 2.2 billion-nok 2.3 billion in revenues When we presented the first half-year results, we raised that target to NOK 2.5 billion-NOK 2.6 billion. when we presented the first half-year results we raised that target to nok 2.5 billion-nok 2.6 billion This remains our target for the full year. this remains our target for the full year We expect revenues in that range. we expect revenues in that range With that, we expect an EBIT margin between 24% and 25% for the full year. with that we expect an ebit margin between 24% and 25% for the full year As you see, Q4, as always, is a hectical quarter, and this is expected also for 2025. as you see q4 as always is a hectical quarter and this is expected also for 2025 In the different segments, the three last months is typically the strongest in Oceans. in the different segments the three last months is typically the strongest in oceans Some of this is related to what we would call, in quotes, "budget flushing." some of this is related to what we would call in quotes "budget flushing." That's not very easy to predict, but it really happens. So we're preparing for that. In Connectivity, revenues are expected to increase sharply quarter-over-quarter. And this is driven by delivery of the GNSS OBU, which started in October. We expect revenues in the range of NOK 200 million-NOK 240 million for this. In the PIR segment, we expect to generate new records. The aim is to deliver between NOK 390 million and NOK 420 million in the fourth quarter. This is driven by the same sector, as I've explained earlier, which is very strong also in our outlook. That concludes our presentation. If there are any questions, we're happy to answer them. That's not very easy to predict, but it really happens. that's not very easy to predict but it really happens So we're preparing for that. so we're preparing for that In Connectivity, revenues are expected to increase sharply quarter- over- quarter. in connectivity revenues are expected to increase sharply quarter- over- quarter And this is driven by delivery of the GNSS OBU, which started in October. and this is driven by delivery of the gnss obu which started in october We expect revenues in the range of NOK 200 million-NOK 240 million for this. we expect revenues in the range of nok 200 million-nok 240 million for this In the PIR segment, we expect to generate new records. in the pir segment we expect to generate new records The aim is to deliver between NOK 390 million and NOK 420 million in the fourth quarter. the aim is to deliver between nok 390 million and nok 420 million in the fourth quarter This is driven by the same sector, as I've explained earlier, which is very strong also in our outlook. this is driven by the same sector as i've explained earlier which is very strong also in our outlook That concludes our presentation. that concludes our presentation If there are any questions, we're happy to answer them. if there are any questions we're happy to answer them

Speaker 2: We have a few questions. One question from Olav at Per Jættu. We have a few questions. we have a few questions One question from Olav at Per Jættu. one question from olav at per jættu Could you give some color on Q4 Connectivity guidance and if this reflects some reshuffling of the GNSS On-Board Unit into first quarter 2026? Could you give some color on Q4 Connectivity guidance and if this reflects some reshuffling of the GNSS On-Board Unit into first quarter 2026? could you give some color on q4 connectivity guidance and if this reflects some reshuffling of the gnss on-board unit into first quarter 2026 Yeah, let's take that question. Yeah, let's take that question. yeah let's take that question

Speaker 1: Yeah, so what we can say is that, as I mentioned, we started this project 18 months ago. And the design phase until reaching approval took a couple of months longer time than expected, meaning that start of ramp-up of production also was a little bit postponed. It's a good question. It's probably easiest to say that some of the revenues in this contract are reflected in the guidance to be expected in Q1 instead of fully in Q4. It's a little bit annoying, but this is what happens when you have some delays. Maybe also add to that, when NORBIT are looking for new projects, we'd like to find things which are very hard to design. Yeah, so what we can say is that, as I mentioned, we started this project 18 months ago. yeah so what we can say is that as i mentioned we started this project 18 months ago And the design phase until reaching approval took a couple of months longer time than expected, meaning that start of ramp-up of production also was a little bit postponed. and the design phase until reaching approval took a couple of months longer time than expected meaning that start of ramp-up of production also was a little bit postponed It's a good question. it's a good question It's probably easiest to say that some of the revenues in this contract are reflected in the guidance to be expected in Q1 instead of fully in Q4. it's probably easiest to say that some of the revenues in this contract are reflected in the guidance to be expected in q1 instead of fully in q4 It's a little bit annoying, but this is what happens when you have some delays. it's a little bit annoying but this is what happens when you have some delays Maybe also add to that, when NORBIT are looking for new projects, we'd like to find things which are very hard to design. maybe also add to that when norbit are looking for new projects we'd like to find things which are very hard to design Our engineers should struggle. And so we did. We did struggle. But we made it. Why is this positive? It means it's complicated to make this, and it gives some threshold for others to come easily afterwards. Just want to add that. Our engineers should struggle. our engineers should struggle And so we did. and so we did We did struggle. we did struggle But we made it. but we made it Why is this positive? why is this positive It means it's complicated to make this, and it gives some threshold for others to come easily afterwards. it means it's complicated to make this and it gives some threshold for others to come easily afterwards Just want to add that. just want to add that

Speaker 2: Same question from, or a new question from Olav. The sonar sales look very strong this quarter. Could you give some color on which customer groups and use cases and what is driving this? When we are speaking about Oceans, lastly, sub-bottom profilers are tad softer this quarter. Can you give some color on this product for Q4? Same question from, or a new question from Olav. same question from or a new question from olav The sonar sales look very strong this quarter. the sonar sales look very strong this quarter Could you give some color on which customer groups and use cases and what is driving this? could you give some color on which customer groups and use cases and what is driving this When we are speaking about Oceans, lastly, sub-bottom profilers are tad softer this quarter. when we are speaking about oceans lastly sub-bottom profilers are tad softer this quarter Can you give some color on this product for Q4? can you give some color on this product for q4

Speaker 1: I think we do not have any split for the different sub-segments in the guidance. I think what we have seen is that the product WBMS X has performed very well. As with other sonars, it has a wide range of different use cases. I think we do not have any split for the different sub-segments in the guidance. i think we do not have any split for the different sub-segments in the guidance I think what we have seen is that the product WBMS X has performed very well. i think what we have seen is that the product wbms x has performed very well As with other sonars, it has a wide range of different use cases. as with other sonars it has a wide range of different use cases I think this is what was in Q3 also, that it's a widespread sum for ordinary surveying purposes, seafloor mapping. We still see a very strong demand from different kinds of autonomous vessels, both surface and sub-surface vessels. I think this is what was in Q3 also, that it's a widespread sum for ordinary surveying purposes, seafloor mapping. i think this is what was in q3 also that it's a widespread sum for ordinary surveying purposes seafloor mapping We still see a very strong demand from different kinds of autonomous vessels, both surface and sub-surface vessels. we still see a very strong demand from different kinds of autonomous vessels both surface and sub-surface vessels

Speaker 2: Good. Question from Jeppe at Arctic. What was the reason for the postponement of the NOK 15 million OBU order? Good. good Question from Jeppe at Arctic. question from jeppe at arctic What was the reason for the postponement of the NOK 15 million OBU order? what was the reason for the postponement of the nok 15 million obu order

Speaker 1: Yeah, this is partly late incoming material and partly some shuffling on capacity. Yeah, this is partly late incoming material and partly some shuffling on capacity. yeah this is partly late incoming material and partly some shuffling on capacity

Speaker 2: How much of the NOK 160 million GNSS On-Board Unit contract has been delivered as of now? How much of the NOK 160 million GNSS On-Board Unit contract has been delivered as of now? how much of the nok 160 million gnss on-board unit contract has been delivered as of now

Speaker 1: I don't think we've given any figures on that. I think we will keep that, for commercial reasons, we'd like to keep that a little bit low. I don't think we've given any figures on that. i don't think we've given any figures on that I think we will keep that, f or commercial reasons, we'd like to keep that a little bit low. i think we will keep that, f or commercial reasons we'd like to keep that a little bit low

Speaker 2: What is the most important drivers of the GNSS On-Board Unit product? In the medium term, is the 2G switch the most important driver? What is the most important drivers of the GNSS On-Board Unit product? what is the most important drivers of the gnss on-board unit product In the medium term, is the 2G switch the most important driver? in the medium term is the 2g switch the most important driver

Speaker 1: I think the underlying market need is good. I think the underlying market need is good. i think the underlying market need is good In the medium term, this phase-out of the 2G is expected really to generate a strong demand. I mean, Switzerland has already turned off their 2G GSM. The major German network providers have announced that in mid-2028, they will turn off. I think for the coming years, this is an important driver. In the medium term, this phase-out of the 2G is expected really to generate a strong demand. in the medium term this phase-out of the 2g is expected really to generate a strong demand I mean, Switzerland has already turned off their 2G GSM. i mean switzerland has already turned off their 2g gsm The major German network providers have announced that in mid-2028, they will turn off. the major german network providers have announced that in mid-2028 they will turn off I think for the coming years, this is an important driver. i think for the coming years this is an important driver

Speaker 2: Creates a sort of a replacement need for the 2G units that are in the market. Yeah. Could you share any updates on sales lead for the GuardPoint product? Progress seems to have been slower than anticipated. Creates a sort of a replacement need for the 2G units that are in the market. creates a sort of a replacement need for the 2g units that are in the market Yeah. yeah Could you share any updates on sales lead for the GuardPoint product? could you share any updates on sales lead for the guardpoint product Progress seems to have been slower than anticipated. progress seems to have been slower than anticipated

Speaker 1: Yeah, I think it remains, as we've said in the past, that it's a lot of sales lead. The conclusions on the projects are not materializing as soon as expected. Our judgment is that this is the reason. Yeah, I think it remains, as we've said in the past, that it's a lot of sales lead. yeah i think it remains as we've said in the past that it's a lot of sales lead The conclusions on the projects are not materializing as soon as expected. the conclusions on the projects are not materializing as soon as expected Our judgment is that this is the reason. our judgment is that this is the reason We cannot see that the projects we're aiming for are lost, that there are some competitors gaining them. We still think we are well positioned with relevant technology. Yeah, we remain safe under pressure and continue to work hard every day to get these orders. We cannot see that the projects we're aiming for are lost, that there are some competitors gaining them. we cannot see that the projects we're aiming for are lost that there are some competitors gaining them We still think we are well positioned with relevant technology. we still think we are well positioned with relevant technology Yeah, we remain safe under pressure and continue to work hard every day to get these orders. yeah we remain safe under pressure and continue to work hard every day to get these orders

Speaker 2: Lastly, any comments regarding the development of Innomar in the quarter? Lastly, any comments regarding the development of Innomar in the quarter? lastly any comments regarding the development of innomar in the quarter

Speaker 1: Yeah, the revenues are somewhat weaker in the quarter than we expected. Looking into this, we expect improvement of that again looking into next year. What we see is that the proactive activities in the market generate more interest. The NORBIT global sales and market platform now carries the sub-bottom profiler offering from our daughter company Innomar. We feel that this will increase and be a good addition to our continued growth also going forward. Yeah, the revenues are somewhat weaker in the quarter than we expected. yeah the revenues are somewhat weaker in the quarter than we expected Looking into this, we expect improvement of that again looking into next year. looking into this we expect improvement of that again looking into next year What we see is that the proactive activities in the market generate more interest. what we see is that the proactive activities in the market generate more interest The NORBIT global sales and market platform now carries the sub-bottom profiler offering from our daughter company Innomar. the norbit global sales and market platform now carries the sub-bottom profiler offering from our daughter company innomar We feel that this will increase and be a good addition to our continued growth also going forward. we feel that this will increase and be a good addition to our continued growth also going forward

Speaker 2: Question on the dividend. Question on the dividend. question on the dividend I will combine these, I think. Does the additional dividend suggest no M&A in focus? Did you consider any potential acquisitions before deciding on the payout, or was the dividend your first priority? I'd like to remind you that we have a financial policy of having a NIBD to EBITDA ratio between 1 and 2.5. As we reported in this quarter, we're at 0.7x, which means that we are below the policy. For us also going into a record fourth quarter as we see it currently, there is room for both. There is room to pay out the dividend, and there's also room to explore M&A. As always, each individual M&A case has to be assessed. The capital structure of that investment has to be decided solely on the investment size itself. It means that no M&A is not off the table. I will combine these, I think. i will combine these i think Does the additional dividend suggest no M&A in focus? does the additional dividend suggest no m&a in focus Did you consider any potential acquisitions before deciding on the payout, or was the dividend your first priority? did you consider any potential acquisitions before deciding on the payout or was the dividend your first priority I'd like to remind you that we have a financial policy of having a NIBD to EBITDA ratio between 1 and 2.5. i'd like to remind you that we have a financial policy of having a nibd to ebitda ratio between 1 and 2.5 As we reported in this quarter, we're at 0.7x , which means that we are below the policy. as we reported in this quarter we're at 0.7x which means that we are below the policy For us also going into a record fourth quarter as we see it currently, there is room for both. for us also going into a record fourth quarter as we see it currently there is room for both There is room to pay out the dividend, and there's also room to explore M&A. there is room to pay out the dividend and there's also room to explore m&a As always, each individual M&A case has to be assessed. as always each individual m&a case has to be assessed The capital structure of that investment has to be decided solely on the investment size itself. the capital structure of that investment has to be decided solely on the investment size itself It means that no M&A is not off the table. it means that no m&a is not off the table It's actually a very high topic on the strategic agenda. To summarize again, our balance sheet allows us to do both. It is not either/or. A question regarding PIR. How is the visibility in PIR entering 2026? It's actually a very high topic on the strategic agenda. it's actually a very high topic on the strategic agenda To summarize again, our balance sheet allows us to do both. to summarize again our balance sheet allows us to do both It is not either/or. it is not either/or A question regarding PIR. a question regarding pir How is the visibility in PIR entering 2026? how is the visibility in pir entering 2026

Speaker 1: Yeah, I think as we've spoken about in the past also, with several of our clients, we're working very closely. We're taking measures to secure material and secure scalability so we can act as orders materialize. I think if you look on the announcements we've done in the past and the lead time from we announce until we say we should deliver, which is quite narrow, that's an indicator of what you could say is the visibility if you look from an order backlog perspective. The visibility for us to make decisions and to be prepared, having sharing and working closely with these clients is for us satisfying. Yeah, I think as we've spoken about in the past also, with several of our clients, we're working very closely. yeah i think as we've spoken about in the past also with several of our clients we're working very closely We're taking measures to secure material and secure scalability so we can act as orders materialize. we're taking measures to secure material and secure scalability so we can act as orders materialize I think if you look on the announcements we've done in the past and the lead time from we announce until we say we should deliver, which is quite narrow, that's an indicator of what you could say is the visibility if you look from an order backlog perspective. i think if you look on the announcements we've done in the past and the lead time from we announce until we say we should deliver which is quite narrow that's an indicator of what you could say is the visibility if you look from an order backlog perspective The visibility for us to make decisions and to be prepared, having sharing and working closely with these clients is for us satisfying. the visibility for us to make decisions and to be prepared having sharing and working closely with these clients is for us satisfying It remains that we need to work together to prepare so that the time from announcing an order until we deliver is an agile way of running NORBIT. It remains that we need to work together to prepare so that the time from announcing an order until we deliver is an agile way of running NORBIT. it remains that we need to work together to prepare so that the time from announcing an order until we deliver is an agile way of running norbit

Speaker 2: What is the potential for onboarding new customers in the PIR segment, or are you expecting existing customers to demand all of the production capacity in the short term? What is the potential for onboarding new customers in the PIR segment, or are you expecting existing customers to demand all of the production capacity in the short term? what is the potential for onboarding new customers in the pir segment or are you expecting existing customers to demand all of the production capacity in the short term

Speaker 1: For us, we are working to onboard new customers, but very cherry-picking when looking at what kind of customers that fits into this. It needs to be some customers where they see the advantage of having NORBIT as a scaling partner rather than just an alternative for any other EMS. With the capacity build-up we have done and are doing, we plan to invite others also to join the party. For us, we are working to onboard new customers, but very cherry-picking when looking at what kind of customers that fits into this. for us we are working to onboard new customers but very cherry-picking when looking at what kind of customers that fits into this It needs to be some customers where they see the advantage of having NORBIT as a scaling partner rather than just an alternative for any other EMS. it needs to be some customers where they see the advantage of having norbit as a scaling partner rather than just an alternative for any other ems With the capacity build-up we have done and are doing, we plan to invite others also to join the party. with the capacity build-up we have done and are doing we plan to invite others also to join the party

Speaker 2: A question on our partnership with mechanicals, Aursund Maskinering and NOMEK. A question on our partnership with mechanicals, Aursund Maskinering and NOMEK. a question on our partnership with mechanicals aursund maskinering and nomek What are your ambitions here and what's the driver that led you to invest in that partnership? What are your ambitions here and what's the driver that led you to invest in that partnership? what are your ambitions here and what's the driver that led you to invest in that partnership

Speaker 1: Yeah, so three years ago, NORBIT acquired a small mechanical factory in Trondheim running with five-axis milling machines, etc., doing components to our sonars. The founder of that company was about to retire and looking for some new owners. We were by far the largest customer. For NORBIT, this is important capacity to have. It's not very important for NORBIT to have mechanical factories as part of our full operation, but it's important capacity to have. When we saw how could we grow this and ensure that this grows with NORBIT. It should then also be in a position where it could grow on other clients so that NORBIT is not too large part of the full operation. Yeah, so three years ago, NORBIT acquired a small mechanical factory in Trondheim running with five-axis milling machines, etc., doing components to our sonars. yeah so three years ago norbit acquired a small mechanical factory in trondheim running with five-axis milling machines etc doing components to our sonars The founder of that company was about to retire and looking for some new owners. the founder of that company was about to retire and looking for some new owners We were by far the largest customer. we were by far the largest customer For NORBIT, this is important capacity to have. for norbit this is important capacity to have It's not very important for NORBIT to have mechanical factories as part of our full operation, but it's important capacity to have. it's not very important for norbit to have mechanical factories as part of our full operation but it's important capacity to have When we saw how could we grow this and ensure that this grows with NORBIT. when we saw how could we grow this and ensure that this grows with norbit It should then also be in a position where it could grow on other clients so that NORBIT is not too large part of the full operation. it should then also be in a position where it could grow on other clients so that norbit is not too large part of the full operation That is why we saw this other factory in Trondheim, NOMEK, doing very much the same. We saw that this is a good fit for some consolidation. NORBIT is not in a need of being a controlling owner. We would like to be a strategic owner to ensure that the necessary preparedness is in the strategy of this supplier. We teamed up with a local investor. They have 51% of the shares and NORBIT 49% of this merged operation between the factory we had and this NOMEK. We work together now on the owner level to have some ambitions for this factory to lift out from regional focus to a Nordic focus. I think that will be good for securing supply and scalability for NORBIT in the long term. That is why we saw this other factory in Trondheim, NOMEK, doing very much the same. that is why we saw this other factory in trondheim nomek doing very much the same We saw that this is a good fit for some consolidation. we saw that this is a good fit for some consolidation NORBIT is not in a need of being a controlling owner. We would like to be a strategic owner to ensure that the necessary preparedness is in the strategy of this supplier. norbit is not in a need of being a controlling owner. we would like to be a strategic owner to ensure that the necessary preparedness is in the strategy of this supplier We teamed up with a local investor. we teamed up with a local investor They have 51% of the shares and NORBIT 49% of this merged operation between the factory we had and this NOMEK. they have 51% of the shares and norbit 49% of this merged operation between the factory we had and this nomek We work together now on the owner level to have some ambitions for this factory to lift out from regional focus to a Nordic focus. we work together now on the owner level to have some ambitions for this factory to lift out from regional focus to a nordic focus I think that will be good for securing supply and scalability for NORBIT in the long term. i think that will be good for securing supply and scalability for norbit in the long term

Speaker 2: A question on valuation multiples for potential targets. A question on valuation multiples for potential targets. a question on valuation multiples for potential targets Does that make it more challenging to execute acquisitions? I mean, it's not the valuation multiples or the expectations on the valuation multiples that necessarily makes us, or sort of is the reason why we haven't announced an acquisition itself. I think it's more relating to the fact that we haven't found the right company to invest in. We have spent a lot of time trying to educate on what we are looking for and what are the criteria that need to be fulfilled in order for us to do an investment. It has to do with culture fit with the target. It has to do with accretion, of course. Multiples are, of course, one of the criteria. It also has to be relevant to the strategy that we are pursuing in which we are building a technology company. Does that make it more challenging to execute acquisitions? does that make it more challenging to execute acquisitions I mean, it's not the valuation multiples or the expectations on the valuation multiples that necessarily makes us, or sort of is the reason why we haven't announced an acquisition itself. i mean it's not the valuation multiples or the expectations on the valuation multiples that necessarily makes us or sort of is the reason why we haven't announced an acquisition itself I think it's more relating to the fact that we haven't found the right company to invest in. i think it's more relating to the fact that we haven't found the right company to invest in We have spent a lot of time trying to educate on what we are looking for and what are the criteria that need to be fulfilled in order for us to do an investment. we have spent a lot of time trying to educate on what we are looking for and what are the criteria that need to be fulfilled in order for us to do an investment It has to do with culture fit with the target. it has to do with culture fit with the target It has to do with accretion, of course. it has to do with accretion of course Multiples are, of course, one of the criteria. multiples are of course one of the criteria It also has to be relevant to the strategy that we are pursuing in which we are building a technology company. it also has to be relevant to the strategy that we are pursuing in which we are building a technology company It has to be related to advanced technology. Finding those companies is not easy. I mean, it's quite challenging. We'd rather spend time maturing those ideas. The list of ideas is quite long, but it's far from ideas to actually put your pen on the paper. That's why it's taking time. We will make sure to announce any investment when it comes. Not for today, maybe for tomorrow. Okay. When it comes to AI, is that something you use or can you start to use in your business? Yeah, that's the question. It has to be related to advanced technology. it has to be related to advanced technology Finding those companies is not easy. finding those companies is not easy I mean, it's quite challenging. i mean it's quite challenging We'd rather spend time maturing those ideas. we'd rather spend time maturing those ideas The list of ideas is quite long, but it's far from ideas to actually put your pen on the paper. the list of ideas is quite long but it's far from ideas to actually put your pen on the paper That's why it's taking time. that's why it's taking time We will make sure to announce any investment when it comes. we will make sure to announce any investment when it comes Not for today, maybe for tomorrow. not for today maybe for tomorrow Okay. okay When it comes to AI, is that something you use or can you start to use in your business? when it comes to ai is that something you use or can you start to use in your business Yeah, that's the question. yeah that's the question

Speaker 1: AI is important in our business. It's important in our administrative operation of the business. AI is important in our business. ai is important in our business It's important in our administrative operation of the business. it's important in our administrative operation of the business We have seen good advantage of using that technology, for instance, in the HR domain where we have built routines, which is much more effective and self-service solutions, reducing the need for increasing staffing in that part. In the products also, you can imagine working with image processing and target recognition. AI is very suitable for that. Yeah, that is very relevant for us. We have seen good advantage of using that technology, for instance, in the HR domain where we have built routines, which is much more effective and self-service solutions, reducing the need for increasing staffing in that part. we have seen good advantage of using that technology for instance in the hr domain where we have built routines which is much more effective and self-service solutions reducing the need for increasing staffing in that part In the products also, you can imagine working with image processing and target recognition. in the products also you can imagine working with image processing and target recognition AI is very suitable for that. ai is very suitable for that Yeah, that is very relevant for us. yeah that is very relevant for us

Speaker 2: Last question. Could you guide on consultancy fees related to M&A for this year? I think that is close to zero. I mean, we do not use necessarily consultants to map out our M&A ideas. We have an internal team for that, which is also driving the project through the execution phase and also is working in the integration phase if we decide to invest in a company. Last question. last question Could you guide on consultancy fees related to M&A for this year? could you guide on consultancy fees related to m&a for this year I think that is close to zero. i think that is close to zero I mean, we do not use necessarily consultants to map out our M&A ideas. i mean we do not use necessarily consultants to map out our m&a ideas We have an internal team for that, which is also driving the project through the execution phase and also is working in the integration phase if we decide to invest in a company. we have an internal team for that which is also driving the project through the execution phase and also is working in the integration phase if we decide to invest in a company We try to limit those costs to a bare minimum of what we need to drive those ideas forward. We try to limit those costs to a bare minimum of what we need to drive those ideas forward. we try to limit those costs to a bare minimum of what we need to drive those ideas forward

Speaker 1: Maybe to add to that, one of the advantages we see of having an in-house team working with M&A is that they can also be very relevant working on strategy for the business units. They are living the NORBIT life every day and understand the NORBIT DNA and becoming even more relevant in the M&A work as well. Maybe to add to that, one of the advantages we see of having an in-house team working with M&A is that they can also be very relevant working on strategy for the business units. They are living the NORBIT life every day and understand the NORBIT DNA and becoming even more relevant in the M&A work as well. maybe to add to that one of the advantages we see of having an in-house team working with m&a is that they can also be very relevant working on strategy for the business units. they are living the norbit life every day and understand the norbit dna and becoming even more relevant in the m&a work as well

Speaker 2: Could you provide some guidance on the effects of tariffs? I suppose this is the U.S. tariffs on the results year-to-date. We have not seen any material impact of tariffs in the Oceans business. When it comes to our revenue composition, we have virtually no sales to the U.S. in Connectivity and in PIR. We do have exposure in Oceans. Could you provide some guidance on the effects of tariffs? could you provide some guidance on the effects of tariffs I suppose this is the U.S. tariffs on the results year- to- date. i suppose this is the u.s tariffs on the results year- to- date We have not seen any material impact of tariffs in the Oceans business. we have not seen any material impact of tariffs in the oceans business When it comes to our revenue composition, we have virtually no sales to the U.S. in Connectivity and in PIR. when it comes to our revenue composition we have virtually no sales to the u.s in connectivity and in pir We do have exposure in Oceans. we do have exposure in oceans The U.S. is, of course, one important market for us. As of this year, and also as we stated in the report in Q3, Americas was quite a strong region for us and was actually showing the highest growth year on year in the Oceans segment. We do not think, or we have not seen any impact in the numbers of the tariffs per se. I think that summarizes the question to that end unless you want to add something. Okay. Is increased geopolitical uncertainty driving higher demand for your R&D services? And does your PIR customers typically start out as R&D clients before transitioning to contract manufacturing? The U.S. is, of course, one important market for us. the u.s is of course one important market for us As of this year, and also as we stated in the report in Q3, Americas was quite a strong region for us and was actually showing the highest growth year on year in the Oceans segment. as of this year and also as we stated in the report in q3 americas was quite a strong region for us and was actually showing the highest growth year on year in the oceans segment We do not think, or we have not seen any impact in the numbers of the tariffs per se. we do not think or we have not seen any impact in the numbers of the tariffs per se I think that summarizes the question to that end unless you want to add something. i think that summarizes the question to that end unless you want to add something Okay. okay Is increased geopolitical uncertainty driving higher demand for your R&D services? is increased geopolitical uncertainty driving higher demand for your r&d services And does your PIR customers typically start out as R&D clients before transitioning to contract manufacturing? and does your pir customers typically start out as r&d clients before transitioning to contract manufacturing

Speaker 1: I think this geopolitical unrest creates more demand in the long term, both for designed in Europe and made in Europe. In our factories in the contract manufacturing, we have clients that have done the R&D work themselves. I think this geopolitical unrest creates more demand in the long term, both for designed in Europe and made in Europe. i think this geopolitical unrest creates more demand in the long term both for designed in europe and made in europe In our factories in the contract manufacturing, we have clients that have done the R&D work themselves. in our factories in the contract manufacturing we have clients that have done the r&d work themselves We have clients that have been utilizing the NORBIT R&D pool also. It is a mix. We have clients that have been utilizing the NORBIT R&D pool also. we have clients that have been utilizing the norbit r&d pool also It is a mix. it is a mix

Speaker 2: What drove the increased Oceans sales to the Americas in the quarter? It is a mix of different drivers. I think it is hard to pinpoint the sort of exact driver or one driver. It is many things. As Per Jørgen said in his presentation, I mean, one large order could also impact a quarter. Generally, we are seeing quite good momentum in the Americas region. We are making progress in all regions, being North America and South America. I think, again, it is a mix of different drivers, but also good business development efforts by the team in the Americas region. Yeah. What drove the increased Oceans sales to the Americas in the quarter? what drove the increased oceans sales to the americas in the quarter It is a mix of different drivers. it is a mix of different drivers I think it is hard to pinpoint the sort of exact driver or one driver. i think it is hard to pinpoint the sort of exact driver or one driver It is many things. it is many things As Per Jørgen said in his presentation, I mean, one large order could also impact a quarter. as per jørgen said in his presentation i mean one large order could also impact a quarter Generally, we are seeing quite good momentum in the Americas region. generally we are seeing quite good momentum in the americas region We are making progress in all regions, being North America and South America. we are making progress in all regions being north america and south america I think, again, it is a mix of different drivers, but also good business development efforts by the team in the Americas region. i think again it is a mix of different drivers but also good business development efforts by the team in the americas region Yeah. yeah

Speaker 1: I'd just like to, for those that haven't been on our webpage, looking on the Oceans part of the webpage, there are a lot of videos showing different applications, different use cases that's made together with some of our clients. I recommend that you have a look to that as well. I'd just like to, for those that haven't been on our webpage, looking on the Oceans part of the webpage, there are a lot of videos showing different applications, different use cases that's made together with some of our clients. i'd just like to for those that haven't been on our webpage looking on the oceans part of the webpage there are a lot of videos showing different applications different use cases that's made together with some of our clients I recommend that you have a look to that as well. i recommend that you have a look to that as well

Speaker 2: Are the core chips used in the PIR segment proprietary to NORBIT design or primarily off-the-shelf components integrated into your own modules? Are the core chips used in the PIR segment proprietary to NORBIT design or primarily off-the-shelf components integrated into your own modules? are the core chips used in the pir segment proprietary to norbit design or primarily off-the-shelf components integrated into your own modules

Speaker 1: When it comes to chip design, this is very limited activity in NORBIT. We do have very few NORBIT proprietary chips. Where we have that is in the Connectivity domain. For all the rest, it's components off-the-shelf from a global market. When it comes to chip design, this is very limited activity in NORBIT. when it comes to chip design this is very limited activity in norbit We do have very few NORBIT proprietary chips. we do have very few norbit proprietary chips Where we have that is in the Connectivity domain. where we have that is in the connectivity domain For all the rest, it's components off-the-shelf from a global market. for all the rest it's components off-the-shelf from a global market

Speaker 2: Yeah. Maybe to remind that the PIR segment is R&D services partly, but mostly contract manufacturing. In the contract manufacturing part, we are not the product owner. Yeah. yeah Maybe to remind that the PIR segment is R&D services partly, but mostly contract manufacturing. maybe to remind that the pir segment is r&d services partly but mostly contract manufacturing In the contract manufacturing part, we are not the product owner. in the contract manufacturing part we are not the product owner We rely on the design of our customers and do the manufacturing as one of our services. Of the 4% decline in the gross margin, how much is attributed to mix effect and how much was obsolescence provisions in Oceans? Should investors view these effects as one-offs or recurring going forward? I won't necessarily comment on the split between the two. What I can say is that the gross margin in Oceans has been quite stable. It fluctuates some percentage points up and down, but largely it's been in the area 72%-74%. Today, we are reporting 71%. It is not a material change. In Q3 last year, we also had a quite large rental project having installed surveillance sonars in the Seine during the Olympics. That has a very good margin. We rely on the design of our customers and do the manufacturing as one of our services. we rely on the design of our customers and do the manufacturing as one of our services Of the 4% decline in the gross margin, how much is attributed to mix effect and how much was obsolescence provisions in Oceans? of the 4% decline in the gross margin how much is attributed to mix effect and how much was obsolescence provisions in oceans Should investors view these effects as one-offs or recurring going forward? should investors view these effects as one-offs or recurring going forward I won't necessarily comment on the split between the two. i won't necessarily comment on the split between the two What I can say is that the gross margin in Oceans has been quite stable. what i can say is that the gross margin in oceans has been quite stable It fluctuates some percentage points up and down, but largely it's been in the area 72%-74%. it fluctuates some percentage points up and down but largely it's been in the area 72%-74% Today, we are reporting 71%. today we are reporting 71% It is not a material change. it is not a material change In Q3 last year, we also had a quite large rental project having installed surveillance sonars in the Seine during the Olympics. in q3 last year we also had a quite large rental project having installed surveillance sonars in the seine during the olympics That has a very good margin. that has a very good margin It made the 75% be a quite tough comparable this quarter, at least. I think you should look at the margin over time and sort of extrapolate an average based on that to indicate what the normalized margin in Oceans is as we see it. You highlight a NOK 120 million contract post-quarter defense sector following an earlier NOK 100 million award. Can you confirm whether the full NOK 220 million is tied to defense customers or if the NOK 100 million contract was unrelated to that sector? It made the 75% be a quite tough comparable this quarter, at least. it made the 75% be a quite tough comparable this quarter at least I think you should look at the margin over time and sort of extrapolate an average based on that to indicate what the normalized margin in Oceans is as we see it. i think you should look at the margin over time and sort of extrapolate an average based on that to indicate what the normalized margin in oceans is as we see it You highlight a NOK 120 million contract post-quarter defense sector following an earlier NOK 100 million award. you highlight a nok 120 million contract post-quarter defense sector following an earlier nok 100 million award Can you confirm whether the full NOK 220 million is tied to defense customers or if the NOK 100 million contract was unrelated to that sector? can you confirm whether the full nok 220 million is tied to defense customers or if the nok 100 million contract was unrelated to that sector

Speaker 1: No, this was related. It is the same client space. It is just that the separate orders were not in a scale that it was above the threshold we have for making stock announcements. No, this was related. It is the same client space. no this was related. it is the same client space It is just that the separate orders were not in a scale that it was above the threshold we have for making stock announcements. it is just that the separate orders were not in a scale that it was above the threshold we have for making stock announcements

Speaker 2: Are sales to AUV customers becoming material for Oceans? It seems you are involved in a lot of exciting projects. Are sales to AUV customers becoming material for Oceans? are sales to auv customers becoming material for oceans It seems you are involved in a lot of exciting projects. it seems you are involved in a lot of exciting projects

Speaker 1: Sorry, could you repeat that? Sorry, could you repeat that? sorry could you repeat that

Speaker 2: Yeah, sure. Yeah, sure. yeah sure Are sales to AUV customers becoming a material part for Oceans? It seems you are involved in a lot of exciting projects. Are sales to AUV customers becoming a material part for Oceans? are sales to auv customers becoming a material part for oceans It seems you are involved in a lot of exciting projects. it seems you are involved in a lot of exciting projects

Speaker 1: Yeah. Yeah. That is a very relevant driver. And it is a significant or it is a relevant part of the business and the numbers presented also. I think still it is more to come. I agree. It is a lot of interesting things going on and a lot of interest all over the globe for different kinds of solutions. I think, I mean, the headline macro on this, the globe is covered 70% by water and only 5%, 6% has been explored. How can we explore all this? Autonomy is an important part of the answer. Yeah. yeah Yeah. yeah That is a very relevant driver. that is a very relevant driver And it is a significant or it is a relevant part of the business and the numbers presented also. and it is a significant or it is a relevant part of the business and the numbers presented also I think still it is more to come. i think still it is more to come I agree. It is a lot of interesting things going on and a lot of interest all over the globe for different kinds of solutions. i agree. it is a lot of interesting things going on and a lot of interest all over the globe for different kinds of solutions I think, I mean, the headline macro on this, the globe is covered 70% by water and only 5%, 6% has been explored. i think i mean the headline macro on this the globe is covered 70% by water and only 5% 6% has been explored How can we explore all this? how can we explore all this Autonomy is an important part of the answer. autonomy is an important part of the answer

Speaker 2: Final question. Do you have any plan to get more recurring income? Final question. final question Do you have any plan to get more recurring income? do you have any plan to get more recurring income

Speaker 1: It depends what you mean of recurring income. It depends what you mean of recurring income. it depends what you mean of recurring income I would say we do have some recurring income based on having a high degree of repeat clients. If the question is that if we are aiming to have more subscription-based revenues, I think so when we come back in February and we present how this year ended and we will announce what we aim for in 2026. Also, when we come back after the summer and probably announce our 2030 target, I think also looking to 2030, NORBIT will very much be a company where the invoices are based on a number of units mainly. As with the iWBMS X, where it is now possible to pay to get some upgrades, software components are increasing. The subscription-based revenue part of Connectivity, which we have from our daughter company Norbit iData, is expected to grow. I would say we do have some recurring income based on having a high degree of repeat clients. i would say we do have some recurring income based on having a high degree of repeat clients If the question is that if we are aiming to have more subscription-based revenues, I think so when we come back in February and we present how this year ended and we will announce what we aim for in 2026. if the question is that if we are aiming to have more subscription-based revenues i think so when we come back in february and we present how this year ended and we will announce what we aim for in 2026 Also, when we come back after the summer and probably announce our 2030 target, I think also looking to 2030, NORBIT will very much be a company where the invoices are based on a number of units mainly. also when we come back after the summer and probably announce our 2030 target i think also looking to 2030 norbit will very much be a company where the invoices are based on a number of units mainly As with the iWBMS X, where it is now possible to pay to get some upgrades, software components are increasing. as with the iwbms x where it is now possible to pay to get some upgrades software components are increasing The subscription-based revenue part of Connectivity, which we have from our daughter company Norbit iData, is expected to grow. the subscription-based revenue part of connectivity which we have from our daughter company norbit idata is expected to grow In a world where AI generates more code more efficiently, we think it's also good to remain a hardware company to be delivering hardware that the software could run on. In a world where AI generates more code more efficiently, we think it's also good to remain a hardware company to be delivering hardware that the software could run on. in a world where ai generates more code more efficiently we think it's also good to remain a hardware company to be delivering hardware that the software could run on

Speaker 2: Good. Oh, final question here. Do you expect new GNSS On-Board Unit orders to come in the near term? What is the addressable market for the product? Good. good Oh, final question here. oh final question here Do you expect new GNSS On-Board Unit orders to come in the near term? do you expect new gnss on-board unit orders to come in the near term What is the addressable market for the product? what is the addressable market for the product

Speaker 1: Yeah. I think the addressable market for the product, that's the European market. In Europe, there are 6.5 million commercial trucks on the road. Over the last 10 years, there is an average of around 400,000 trucks being made per year. More and more countries are picking up according to the push from the European Union to finance roads by having the truck driver to pay per driven kilometer. Yeah. yeah I think the addressable market for the product, that's the European market. i think the addressable market for the product that's the european market In Europe, there are 6.5 million commercial trucks on the road. in europe there are 6.5 million commercial trucks on the road Over the last 10 years, there is an average of around 400,000 trucks being made per year. over the last 10 years there is an average of around 400,000 trucks being made per year More and more countries are picking up according to the push from the European Union to finance roads by having the truck driver to pay per driven kilometer. more and more countries are picking up according to the push from the european union to finance roads by having the truck driver to pay per driven kilometer My understanding is, I'm not an analyst, but my understanding is when European countries are doubling their investments in defense equipment, the need for financing roads is increasing. This is a preferred way of doing it. We are now working with the leading player in this market. We have been in this domain for many years. It seems like our reputation in the market is good. Probably we should be able to take a good part of this business. I think maybe that is our take on that. My understanding is, I'm not an analyst, but my understanding is when European countries are doubling their investments in defense equipment, the need for financing roads is increasing. my understanding is i'm not an analyst but my understanding is when european countries are doubling their investments in defense equipment the need for financing roads is increasing This is a preferred way of doing it. We are now working with the leading player in this market. We have been in this domain for many years. this is a preferred way of doing it. we are now working with the leading player in this market. we have been in this domain for many years It seems like our reputation in the market is good. it seems like our reputation in the market is good Probably we should be able to take a good part of this business. probably we should be able to take a good part of this business I think maybe that is our take on that. i think maybe that is our take on that

Speaker 2: Maybe to add to that, you also said in the presentation that we have delivered approximately 2 million enforcement modules for these GNSS On-Board Units over the last five years. That also says something about the potential market in this. Maybe to add to that, you also said in the presentation that we have delivered approximately 2 million enforcement modules for these GNSS On-Board Units over the last five years. maybe to add to that you also said in the presentation that we have delivered approximately 2 million enforcement modules for these gnss on-board units over the last five years That also says something about the potential market in this. that also says something about the potential market in this

Speaker 1: That is prior to any replacement. That is prior to any replacement. that is prior to any replacement

Speaker 2: Okay. That was the final question. Okay. okay That was the final question. that was the final question

Speaker 1: Thanks a lot for good and interesting questions. Thank you to all that took the time to follow this presentation. Thanks a lot for good and interesting questions. thanks a lot for good and interesting questions Thank you to all that took the time to follow this presentation. thank you to all that took the time to follow this presentation