Half Year 2026 Norbit ASA Earnings Call

August 13, 2026

Per Jørgen Weisethaunet: NORBIT's Q2 and H1 2026 presentation. Today, we have the pleasure of presenting another record quarter for NORBIT. This is rewarding, and we are grateful for the continued trust placed in us by professional customers around the globe. What makes today an even better day at work is that we also have the opportunity to present our ambitions towards 2030. It is really a privilege to be part of a team with a development-oriented mindset. It is people who are eager to aim higher, continuously improve, and contribute where it matters. After we have walked you through both the Q2 and H1 presentation, as well as the ambitions towards 2030, we will open the floor for questions. As said, Q2 came in as a new record quarter for NORBIT. We have a 22% growth towards Q2 2025. EBIT in the quarter ended at NOK 205 million, representing 25% EBIT margin.

Speaker #1: NORBIT Q2 and H1 2026 presentation. Today, we have the pleasure of presenting another record quarter for NORBIT. This is rewarding, and we're grateful for the continued trust placed in us by professional customers around the globe.

Speaker #1: What makes today an even better day at work is that we also have the opportunity to present our ambitions toward 2030. It's really a privilege to be part of a team with a development-oriented mindset—people who are eager to aim higher, continuously improve, and contribute where it matters.

Per Jørgen Weisethaunet: It is people who are eager to aim higher, continuously improve, and contribute where it matters. After we have walked you through both the Q2 and H1 presentation, as well as the ambitions towards 2030, we will open the floor for questions. As said, Q2 came in as a new record quarter for NORBIT. We have a 22% growth towards Q2 2025. EBIT in the quarter ended at NOK 205 million, representing 25% EBIT margin.

Speaker #1: So, after we've walked you through both the Q2 and H1 presentations, as well as the ambitions toward 2030, we will open the floor for questions.

Speaker #1: As said, Q2 came in as a new record quarter for NORBIT. We have 22% growth toward Q2 2025. EBIT in the quarter ended at NOK 205 million, representing a 25% EBIT margin.

Speaker #1: In the quarter, it's been paid out also—the dividend decided upon by the annual shareholders' meeting, with five Norwegian kroner per share. It was paid out in May.

Per Jørgen Weisethaunet: In the quarter, it has been paid out. Also, the dividend decided upon by the annual shareholders meeting with NOK 5 per share was paid out in May. For the H1, which also is a record, we have NOK 1.5 billion in revenues, which is a 30% growth from H1 2025. With an EBIT margin of 23%, this gives us an EBIT of 361. In addition, during the quarter, we have been awarded several good contracts that we will also comment on later in the presentation. To give you a brief update from the different segments. In the Oceans segment, we have recorded revenues of 236 million. That is very much at par with last year, Q1. And EBIT margin is on 33% in the quarter.

Speaker #1: For the first half-year, which is also a record, we have NOK 1.5 billion in revenues, which is a 30% growth from the first half of 2025.

Speaker #1: With the EBIT margin of 23%, this gives us an EBIT of 361. In addition, during the quarter we've been awarded several good contracts that we will also comment on later in the presentation.

Per Jørgen Weisethaunet: In addition, during the quarter, we have been awarded several good contracts that we will also comment on later in the presentation. To give you a brief update from the different segments. In the Oceans segment, we have recorded revenues of 236 million. That is very much at par with last year, Q1. And EBIT margin is on 33% in the quarter.

Speaker #1: So I'll give you a brief update from the different segments. In the Oceans segment, we've recorded revenues of NOK 236 million. That's very much at par with last year's Q1.

Speaker #1: And EBIT margin is at 33% in the quarter. For the first half, there's a decrease of 7% for this segment. Revenues are 440 million, with an EBIT margin of 30%.

Per Jørgen Weisethaunet: For the H1, it has decreased to 7% for this segment, and on the revenues for 440 million with an EBIT margin of 30%. Gives quite flat comparison to the year before. We have included also in this presentation, as in previous presentations, a split on revenues done on the different products. Since we have quite extensive presentation today also with the ambitions, I am not making lots of comments on this. Post-closing of the quarter, we have also completed the acquisition of Water Linked. This is a strong strategic fit for us. It is a tailored technology in very carefully selected application. I think the strength we have seen in this is to be able to broaden our product offering, also entering into DVL business as a Doppler velocity log, which is an extension of the product business for NORBIT.

Speaker #1: It gives quite a flat comparison to the year before. So we've included also in this presentation, as in previous presentations, a split of revenues by the different products.

Speaker #1: Since we have quite an extensive presentation today, also with the ambitions, I’m not making lots of comments on this. In the post-closing of the quarter, we’ve also completed the acquisition of Water Linked.

Per Jørgen Weisethaunet: Post-closing of the quarter, we have also completed the acquisition of Water Linked. This is a strong strategic fit for us. It is a tailored technology in very carefully selected application. I think the strength we have seen in this is to be able to broaden our product offering, also entering into DVL business as a Doppler velocity log, which is an extension of the product business for NORBIT.

Speaker #1: This is a strong strategic fit for us. It's tailored technology in very carefully selected applications. I think the strength we've seen in this is to be able to broaden our product offering, also entering into the DVL business—also Doppler Velocity Logging—which is an extension of the product business for NORBIT.

Per Jørgen Weisethaunet: We see this both as an extension on the product portfolio, but also on our ability to fuel even more based on organic investments in R&D. It is a good team on board also in this company. Connectivity in the second quarter, it was NOK 250 million in revenues, very much driven by increase on the deliveries of our newest product in the segment, the GNSS On-Board Units. It is an EBIT margin on 27%, giving NOK 66 million in EBIT. For the H1, we have recorded NOK 461 million in revenues, which is an increase of 46% compared to the year before. The EBIT margin is declined in the quarter from the year before when it was 31%. It is now recorded 27%. As commented on, the growth is very much driven, as you see here in the product vertical satellite-based tolling. That is where you have the GNSS On-Board Unit.

Speaker #1: We see this both as an extension of the product portfolio, but also as an opportunity to fuel even more growth based on organic investments in R&D.

Speaker #1: It's a good team on board also in this company. Connectivity: In the second quarter, it was NOK 250 million in revenues, very much driven by an increase in deliveries of our newest product in the segment, the GNSS onboard units.

Speaker #1: It's an EBIT margin of 27%, giving NOK 66 million in EBIT. For the first half, we've recorded NOK 461 million in revenues, which is an increase of 46% compared to the year before.

Per Jørgen Weisethaunet: It is an EBIT margin on 27%, giving NOK 66 million in EBIT. For the H1, we have recorded NOK 461 million in revenues, which is an increase of 46% compared to the year before. The EBIT margin is declined in the quarter from the year before when it was 31%. It is now recorded 27%. As commented on, the growth is very much driven, as you see here in the product vertical satellite-based tolling. That is where you have the GNSS On-Board Unit.

Speaker #1: The EBIT margin has declined in the quarter from the year before, when it was 31%. It's now recorded at 27%. And as commented on, the growth is very much driven, as you see here, in the product vertical satellite-based tolling—that's where you have the GNSS onboard unit.

Per Jørgen Weisethaunet: Dimension product in the quarter, we was awarded a contract for 155 million NOK for delivery H2 this year. In July, so after closing of the quarter, we announced another contract on 325 million scheduled for deliveries to start end of Q4 this year, and the majority to take place during 2027. Final segment, product innovation and realization. It's been very satisfying growth in this segment during the last period. It's at 25% compared to Q2 2025, with 367 million NOK recorded in revenues. The EBIT margin has improved further from 20% up to 2022. For H1, we've delivered north of 700 million Norwegian kroner in revenues. That's an increase from 454. The EBIT margin is, for H1, 21% compared to the 18 we had the same period last year.

Speaker #1: Dimension product: we've in the quarter we was awarded a contract for 155 million NOK for delivery second half this year. And in July, so after closing of the quarter, we announced another contract on 325 million scheduled for deliveries to start end of the fourth quarter this year.

Speaker #1: And the majority to take place during 2027. Final segment: Product Innovation and Realization. It's been a very satisfying growth in this segment during the last period.

Per Jørgen Weisethaunet: It's been very satisfying growth in this segment during the last period. It's at 25% compared to Q2 2025, with 367 million NOK recorded in revenues. The EBIT margin has improved further from 20% up to 2022. For H1, we've delivered north of 700 million Norwegian kroner in revenues. That's an increase from 454. The EBIT margin is, for H1, 21% compared to the 18 we had the same period last year.

Speaker #1: So it's at 25% compared to Q2 2025, with NOK 367 million recorded in revenues. And the EBIT margin has improved further from 20% up to 2022.

Speaker #1: For the first half, we've delivered north of NOK 700 million in revenues. That's an increase from NOK 454 million. The EBIT margin for the first half is 21%, compared to the 18% we had in the same period last year.

Per Jørgen Weisethaunet: As you will see here, a lot of the growth is driven by increased demand and supply towards clients in the defense and security sector. That mentioned, we've, in the quarter, announced that we've been awarded a contract of 225 million for contract manufacturing, and most of that to be delivered H2 this year. With that, I'll leave the floor to Per Kristian to give you some more details on the financial figures.

Speaker #1: And as you will see here, a lot of the growth is driven by increased demand and supply towards clients in the defense and security sector.

Speaker #1: That mentioned, we've in the quarter announced that we've been awarded a contract of NOK 225 million for contract manufacturing, and most of that to be delivered in the second half of this year.

Speaker #1: So with that, I'll leave the floor to Per Christian to give you some more details on the financial figures.

Speaker #2: Thank you, Per. Again, I will spend some minutes walking you through the financial highlights of the quarter. The second quarter showed solid activity across our segments.

Per Kristian Reppe: Thank you, Per Jørgen. I will spend some minutes walking you through the financial highlights of the quarter. Q2 showed solid activity across our segments, resulting in record results delivered. In short, revenues were up 22% from the corresponding period of 2025, despite continued foreign exchange headwinds. The EBIT margin came in at 25%. We continued to increase our working capital efficiency, where cash flow conversion was 108% in the quarter, leading us to reporting a 48% pre-tax return on capital employed for the quarter. Revenues came in at 831.6 million kroner in the quarter, an increase of 26% from the corresponding quarter of 2025 in constant currency. Gross margin was 52%, down from 55%, primarily driven by lower realized margins in Connectivity, as I will elaborate more on in a minute. Operating profit was 205.2 million, translating into a margin of 25%.

Speaker #2: Resulting in record results delivered. In short, revenues were up 22% from the corresponding period of 2025, despite continued foreign exchange headwinds. The EBIT margin came in at 25%.

Speaker #2: We continued to increase our working capital efficiency, with cash flow conversion at 108% in the quarter, leading us to report a 48% pre-tax return on capital employed for the quarter.

Speaker #2: Revenues came in at NOK 831.6 million in the quarter, an increase of 26% from the corresponding quarter of 2025 in constant currency. Gross margin was 52%, down from 55%, primarily driven by lower realized margins in connectivity, as I will elaborate more on in a minute.

Per Kristian Reppe: Revenues came in at 831.6 million kroner in the quarter, an increase of 26% from the corresponding quarter of 2025 in constant currency. Gross margin was 52%, down from 55%, primarily driven by lower realized margins in Connectivity, as I will elaborate more on in a minute. Operating profit was 205.2 million, translating into a margin of 25%.

Speaker #2: Operating profit was NOK 205.2 million, translating into a margin of 25%. This compares to NOK 172.2 million and a margin of 25% reported in the second quarter of 2025.

Per Kristian Reppe: This compares to 174.2 million and a margin of 25% reported in Q2 2025. Net income from the period was 157.1 million, translating into an earnings per share of 245 kroner compared to 206 kroner in Q2 2025. In Q2, Oceans delivered revenues in line with the level reported in Q2 2025. Oceans revenues are predominantly dollar and euro-based, and revenue growth in constant currency was 5%. Looking at H1 2026, Oceans revenues were down 7% compared to H1 2025. While in constant currency, revenues were in line with the corresponding period of last year. The currency-adjusted revenue development must be seen in light of a strong H1 2025 and a slow rental market so far in 2026.

Speaker #2: Net income for the period was 157.1 million, translating into an earnings per share of 245 kroner, compared to 206 kroner in the second quarter of 2025.

Speaker #2: In the second quarter, Oceans delivered revenues in line with the level reported in the second quarter of 2025. Oceans revenues are predominantly dollar and euro based, and revenue growth in constant currency was 5%.

Speaker #2: Looking at the first half of 2026, Oceans revenues were down 7% compared to the first half of 2025, while in constant currency, revenues were in line with the corresponding period of last year.

Per Kristian Reppe: Looking at H1 2026, Oceans revenues were down 7% compared to H1 2025. While in constant currency, revenues were in line with the corresponding period of last year. The currency-adjusted revenue development must be seen in light of a strong H1 2025 and a slow rental market so far in 2026.

Speaker #2: The currency-adjusted revenue development must be seen in light of a strong first half of 2025 and a slow rental market so far in 2026.

Speaker #2: In the first six months of 2025, Oceans recognized approximately NOK 60 million in sonar sales to rental companies. This compares to less than NOK 5 million this year.

Per Kristian Reppe: In the H1 2025, Oceans recognized approximately NOK 60 million in sonar sales towards rental companies. This compares to less than NOK 5 million this year. The soft rental market was compensated by solid demand for sonars across the broader market. Profitability-wise, the gross margin remained on par with that of the Q2 2025, while operating costs were a tad higher in this year's Q2, leading to an EBIT margin of 33% and a nominal EBIT of NOK 79 million. Connectivity reported an increase in revenues of 47% year-over-year and 54% in constant currency. The increase was explained by additional deliveries of the GNSS On-Board Unit to Toll4Europe. Gross margin fell 9 percentage points. The development was primarily attributed to a substantial increase in memory chip prices, components that are used in the development of the GNSS On-Board Unit.

Speaker #2: The soft rental market was compensated by solid demand for sonars across the broader market. Profitability-wise, the gross margin remained on par with that of the second quarter of 2025, while operating costs were a tad higher in this year's second quarter, leading to an EBIT margin of 33% and a nominal EBIT of NOK 79 million.

Speaker #2: Connectivity reported an increase in revenues of 47% year over year, and 54% in constant currency. The increase was explained by additional deliveries of the GNSS onboard unit to Toll4Europe.

Per Kristian Reppe: Connectivity reported an increase in revenues of 47% year-over-year and 54% in constant currency. The increase was explained by additional deliveries of the GNSS On-Board Unit to Toll4Europe. Gross margin fell 9 percentage points. The development was primarily attributed to a substantial increase in memory chip prices, components that are used in the development of the GNSS On-Board Unit.

Speaker #2: Gross margin fell 9 percentage points. The development was primarily attributed to a substantial increase in memory chip prices—components that are used in the development of the GNSS onboard unit.

Speaker #2: A depreciation of the euro against the Norwegian krone also had a negative impact on margins. Coupled with higher operating costs, this led to the EBIT margin declining to 27%, compared to 32% in the same quarter of 2025.

Per Kristian Reppe: A depreciation of the euro against the Norwegian kroner also had a negative weight on margins. Coupled with higher operating costs, this led to an EBIT margin declining to 27%, compared to 32% in the same quarter of 2025. The EBIT result was NOK 66.3 million. PIR posted 25% revenue growth driven by the defense and security sector, while the gross margin was largely on par with that of the same quarter of 2025. Payroll expenses increased on additional hires to support a higher activity level. Other operating expenses rose on higher electricity costs, service maintenance, as well as additional allocated costs. The EBIT result was NOK 81.7 million, and the margin was 22%, up from 20% in the Q2 2025. Next, balance sheet and financial position. Property plant and equipment, including right to use assets, increased NOK 30.3 million in the quarter driven by the expansion of our SMT lines.

Speaker #2: The EBIT result was 66.3 million. PIR posted 25% revenue growth, driven by the Defense and Security sector, while the gross margin was largely on par with that of the same quarter of 2025.

Speaker #2: Payroll expenses increased due to additional hires to support a higher activity level. Other operating expenses rose because of higher electricity costs, service maintenance, and additional allocated costs.

Per Kristian Reppe: Other operating expenses rose on higher electricity costs, service maintenance, as well as additional allocated costs. The EBIT result was NOK 81.7 million, and the margin was 22%, up from 20% in the Q2 2025. Next, balance sheet and financial position. Property plant and equipment, including right to use assets, increased NOK 30.3 million in the quarter driven by the expansion of our SMT lines.

Speaker #2: The EBIT result was NOK 81.7 million, and the margin was 22%, up from 20% in the second quarter of 2025. Next, balance sheet and financial position.

Speaker #2: Property, plant, and equipment, including rights-of-use assets, increased by NOK 30.3 million in the quarter, driven by the expansion of our SMT lines. Intangible assets rose by NOK 13.5 million, explained by R&D investments.

Per Kristian Reppe: Intangible assets rose NOK 13.5 million, explained by R&D investments, partly offset by amortization. Trade receivables increased NOK 135.5 million in the quarter, primarily explained by sequential revenue growth and intra-quarter effects with significant sales in June. Inventories and trade payables were broadly in line with the level reported at the end of March. While other current liabilities rose NOK 153.2 million, primarily explained by prepayments from customers. Net interest-bearing debt, excluding lease liabilities, stood at NOK 340 million at the end of June, an increase from NOK 204.2 million at the end of March following a NOK 319.5 million dividend payment, partly offset by strong cash flow generation in the quarter. Our equity ratio was 43% at quarter end, down from 50% end of Q1 on the mentioned dividend paid. On 1 July, we completed the acquisition of Water Linked.

Speaker #2: Partly offset by amortization. Trade receivables increased by NOK 135.5 million in the quarter, primarily explained by sequential revenue growth and intra-quarter effects with significant sales in June.

Speaker #2: Inventories and trade payables were broadly in line with the level reported at the end of March. Other current liabilities rose by NOK 153.2 million, primarily explained by prepayments from customers.

Speaker #2: Net interest-bearing debt, excluding lease liabilities, stood at €340 million at the end of June, an increase from €204.2 million at the end of March, following a €319.5 million dividend payment, partly offset by strong cash flow generation in the quarter.

Per Kristian Reppe: Net interest-bearing debt, excluding lease liabilities, stood at NOK 340 million at the end of June, an increase from NOK 204.2 million at the end of March following a NOK 319.5 million dividend payment, partly offset by strong cash flow generation in the quarter. Our equity ratio was 43% at quarter end, down from 50% end of Q1 on the mentioned dividend paid. On 1 July, we completed the acquisition of Water Linked.

Speaker #2: Our equity ratio was 43% at quarter end, down from 50% at the end of the first quarter, on the mentioned dividend paid. On the 1st of July, we completed the acquisition of Waterlink. As part of the acquisition, we entered into a new NOK 350 million term loan to finance that acquisition.

Per Kristian Reppe: As part of the acquisition, we entered into a new NOK 350 million term loan to finance that acquisition. At the end of the quarter, our net interest-bearing debt to EBITDA ratio stood at 0.7 times, up from 0.5 times at the end of March. Including the Water Linked transaction, the pro forma ratio would be 1.1 at the end of June. Our available liquidity measured in cash and undrawn committed credit facilities stood at NOK 789 million per end of June. Our financial position creates a strong platform to deliver on our capital allocation framework, including distributing a dividend to our shareholders in May as proposed by the board of directors, as well as accelerating growth through acquisitions with the use of our balance sheet, as evidenced by the Water Linked transaction. Lastly, cash flow from the quarter.

Speaker #2: At the end of the quarter, our net interest-bearing debt to EBITDA ratio stood at 0.7 times, up from 0.5 times at the end of March.

Speaker #2: Including the Waterlink transaction, the pro forma ratio would be 1.1 at the end of June. Our available liquidity, measured in cash and undrawn committed credit facilities, stood at €789 million as of the end of June.

Per Kristian Reppe: Our available liquidity measured in cash and undrawn committed credit facilities stood at NOK 789 million per end of June. Our financial position creates a strong platform to deliver on our capital allocation framework, including distributing a dividend to our shareholders in May as proposed by the board of directors, as well as accelerating growth through acquisitions with the use of our balance sheet, as evidenced by the Water Linked transaction. Lastly, cash flow from the quarter.

Speaker #2: And our financial position creates a strong platform to deliver on our capital allocation framework, including distributing a dividend to our shareholders in May, as proposed by the Board of Directors, as well as accelerating growth through acquisitions with the use of our balance sheet, as evidenced by the Waterlink transaction.

Speaker #2: Lastly, cash flow from the quarter: Cash flow from operations was strong at NOK 275.2 million, explained by an EBITDA of NOK 253.7 million, a net decrease of NOK 55.1 million in working capital, partly offset by NOK 33.6 million in taxes paid.

Per Kristian Reppe: Cash flow from operations was strong at NOK 275.2 million, explained by an EBITDA of NOK 253.7 million, a net decrease of NOK 55.1 million in working capital, partly offset by NOK 33.6 million in taxes paid. We invested NOK 55.8 million in the quarter, mainly explained by NOK 36.1 million in R&D investments and NOK 19.9 million investments in machinery and equipment. The investment level for the full year is expected to be approximately NOK 120 million for R&D investments and NOK 110 million in fixed assets. Both numbers excluding Water Linked. Cash outflow from financing activities was NOK 309 million in the quarter, primarily explained by a NOK 319.5 million dividend pay. I will then leave the floor back to Per Jørgen, who will give you the outlook section.

Speaker #2: We invested 55.8 million in the quarter, mainly explained by 36.1 million in R&D investments, and 19.9 million in investments in machinery and equipment. The investment level for the full year is expected to be approximately 120 million, for R&D investments, and 110 million in fixed assets.

Per Kristian Reppe: The investment level for the full year is expected to be approximately NOK 120 million for R&D investments and NOK 110 million in fixed assets. Both numbers excluding Water Linked. Cash outflow from financing activities was NOK 309 million in the quarter, primarily explained by a NOK 319.5 million dividend pay. I will then leave the floor back to Per Jørgen, who will give you the outlook section.

Speaker #2: Both numbers exclude Waterlink. Cash outflow from financing activities was NOK 309 million in the quarter, primarily explained by a NOK 319.5 million dividend paid. I will then leave the floor back to Per-Jørgen, who will give you the Outlook section.

Speaker #1: Thank you, Per-Christian. So, looking into the outlook, we have a view today that, based on the current outlook, we expect full-year revenue in the range of NOK 2.5 to 3.1 billion.

Per Jørgen Weisethaunet: Thank you, Per Kristian. Looking into the outlook, we have a view today based on the current outlook. We expect the full year revenue in the range of NOK 2.5 billion to NOK 3.1 billion. The revenue contribution coming from Water Linked is excluded, so that will be an addition to that. The EBIT margin we expect to be in the range between 20% and 23%. For the more short-term outlook, as a start before diving into the 2030 ambitions, going from the short to the much longer. Oceans has started out the Q3 strong, despite that this quarter normally is slower. We target revenues in the range of NOK 230 million to NOK 260 million in Q3. Again, this is excluding Water Linked, which is part of the Oceans segment, so that will be on top of that.

Speaker #1: And then the revenue contribution coming from Waterlink is excluded, so that will be an addition to that. The EBIT margin we expect to be in the range between 20 and 23%.

Speaker #1: For the more short-term outlook, as a start before diving into the 2030 ambitions, so going from the short to the much longer. So Oceans has started out the third quarter strong, despite that this quarter normally is slower.

Per Jørgen Weisethaunet: For the more short-term outlook, as a start before diving into the 2030 ambitions, going from the short to the much longer. Oceans has started out the Q3 strong, despite that this quarter normally is slower. We target revenues in the range of NOK 230 million to NOK 260 million in Q3. Again, this is excluding Water Linked, which is part of the Oceans segment, so that will be on top of that.

Speaker #1: So we target revenues in the range of 230 to 260 million in the third quarter. And again, this is excluding Waterlink, which is part of the Oceans segment.

Speaker #1: So that will be on top of that. For the third quarter, in Connectivity, we expect to deliver between 150 and 160 million in revenues.

Per Jørgen Weisethaunet: For the Q3, in Connectivity, we expect to deliver between NOK 150 million and NOK 160 million in revenues. There is a small in-between orders break of the manufacturing of the GNSS On-Board Unit, which will ramp up again in the Q4. In PIR, we target revenues in the range of NOK 240 million to NOK 260 million in the Q3. This is a little bit lower deliveries on the defense and security sectors compared to the previous quarter. That concludes the Q2 and H1 presentation and moves us towards the part we have more room to affect. H1 and Q2 is history. 2030 is the future. We will give first a quick updated introduction to NORBIT and the segments, the ambition plan itself, some market drivers, strategic positions and ambitions, and at the end, we will walk you through also financial and capital allocation framework.

Speaker #1: And there is a small in-between-orders break in the manufacturing of the GNSS onboard unit, which will ramp up again in the fourth quarter.

Speaker #1: In Peer, we target revenues in the range of 240 to 260 million in the third quarter, and this is a little bit lower deliveries on the Defense and Security sectors, compared to the previous quarter.

Per Jørgen Weisethaunet: That concludes the Q2 and H1 presentation and moves us towards the part we have more room to affect. H1 and Q2 is history. 2030 is the future. We will give first a quick updated introduction to NORBIT and the segments, the ambition plan itself, some market drivers, strategic positions and ambitions, and at the end, we will walk you through also financial and capital allocation framework.

Speaker #1: That concludes the Q2 and H1 presentation, and moves us toward the part we have more room to affect. H1 and Q2 are history; 2030 is the future.

Speaker #1: So, we'll first give a quick, updated introduction to NORBIT and then the segments: the ambition plan itself, some market drivers, strategic positions, and ambitions.

Speaker #1: And at the end, we'll walk you through the financial and capital allocation framework as well. Since 2010 until today, including the just given outlook, we have an annual CAGR of 30%.

Per Jørgen Weisethaunet: Since 2010 until today, including the just given outlook, we have annual CAGR of 30%. Since we became stock listed in 2019, our EBIT margins has improved. Prior to that, we were focusing on EBITDA margins, but learned in the meeting with professional investors that it matters also what you have on the final bottom line. That is why we changed. For NORBIT, it has been important to shape and maintain a corporate culture. We strongly believe that a group of people that has some kind of the same way of believing and acting increases your ability to reach your ambitions. Our core ideology remains the same as it has been for many, many years. Characteristics in this, call it culture or ideology, is that we explore more. This has to do with being very much opportunity-driven.

Speaker #1: And since we became stock-listed in 2019, our EBIT margins have improved. Prior to that, we were focusing on EBITDA margins, but learned in the meeting with professional investors that it matters also what you have on the final bottom line.

Speaker #1: So that's why we changed. For NORBIT, it's been important to shape and maintain a corporate culture. We strongly believe that a group of people who share the same way of believing and acting increases your ability to reach your ambitions.

Per Jørgen Weisethaunet: For NORBIT, it has been important to shape and maintain a corporate culture. We strongly believe that a group of people that has some kind of the same way of believing and acting increases your ability to reach your ambitions. Our core ideology remains the same as it has been for many, many years. Characteristics in this, call it culture or ideology, is that we explore more. This has to do with being very much opportunity-driven.

Speaker #1: Our core ideology remains the same as it's been for many, many years. And one characteristic in this—call it culture or ideology—is that we explore more.

Speaker #1: This has to do with being very much opportunity-driven. One of the most important things for us in the past, as well as going forward, is to focus on recruiting and refining top talent.

Per Jørgen Weisethaunet: One of the most important things for us in the past as well as going forward is to focus on recruiting and refining top talents. The best people delivers the best results. We are very opportunity-driven and entrepreneurial, and in the company, we work hard to maintain and safeguard a commercial spirit. We are a technology company that do a lot to tailor new technology, prioritizing what to make is done market-driven. We do not want to make some cool tech that is only fun for us being engineers. We like to make something that matters, that someone really can use. In parallel with this, the growth strategy also needs to be tailored, not on a group level, not on a segment level, but done on each individual product. The numbers we have shown for the H1 also reassures me that being diversified is a smart move.

Speaker #1: The best people deliver the best results. We're very opportunity-driven and entrepreneurial, and within the company, we work hard to maintain and safeguard a commercial spirit.

Speaker #1: We're a technology company that does a lot to tailor new technology. Prioritizing what to make is done market-driven. We don't want to make some cool tech that's only fun for us as engineers.

Per Jørgen Weisethaunet: We do not want to make some cool tech that is only fun for us being engineers. We like to make something that matters, that someone really can use. In parallel with this, the growth strategy also needs to be tailored, not on a group level, not on a segment level, but done on each individual product. The numbers we have shown for the H1 also reassures me that being diversified is a smart move.

Speaker #1: We'd like to make something that matters, that someone really can use. And in parallel with this, the growth strategy also needs to be tailored, not on a group level, not on a segment level, but down to each individual product.

Speaker #1: The numbers we've shown for the first half-year also reassure me that being diversified is a smart move. In the first half, one of our strong pillars, Oceans, has been quite flat; still, we deliver satisfying growth on the total.

Per Jørgen Weisethaunet: H1, one of our strong pillars, Oceans, has been quite flat. Still we deliver a satisfying growth on the total. Having uncorrelated business verticals with different drivers is helpful. Looking on these numbers, some products, some segments has had challenges some years, but then being diversified, you are able to continue to grow. Since 2010, 2012, we have been working with four-year strategy periods. That works for NORBIT. Having a longer vision, we believe that the sense of urgency will not be there. If you should deliver on an ambition within four years, you need to start now. If you have a shorter view, maybe you do not have time to do the proper investments and preparation. So four-year works for us. in March 2019, we launched a plan prior to the IPO. I think we delivered that fairly well. In August 2021, we announced our 2024 plan.

Speaker #1: And having called it uncorrelated business verticals with different drivers is helpful. So, looking at these numbers, some products, some segments have had challenges some years, but then, being diversified, you're able to continue to grow.

Speaker #1: Since 2012, 2010, 2012, we've been working with four-year strategy periods. That works for NORBIT. Having a longer vision, we believe that the sense of urgency will not be there.

Per Jørgen Weisethaunet: Having a longer vision, we believe that the sense of urgency will not be there. If you should deliver on an ambition within four years, you need to start now. If you have a shorter view, maybe you do not have time to do the proper investments and preparation. So four-year works for us. in March 2019, we launched a plan prior to the IPO. I think we delivered that fairly well. In August 2021, we announced our 2024 plan.

Speaker #1: If you should deliver on an ambition within four years, you need to start now. If you have a shorter view, maybe you don't have time to do the proper investments and preparation.

Speaker #1: So, four years works for us. In March 2019, we launched a plan prior to the IPO, and I think we delivered that fairly well. In August 2021, we announced our 2024 plan.

Speaker #1: We were able to deliver on that one year early. The current plan prior to this was a 2027 plan. We're now in 2026, and we see we're reaching our 2027 targets one year earlier.

Per Jørgen Weisethaunet: We were able to deliver on that one year early. Current plan prior to this is the 2027 plan. We are now in 2026, and we see we are reaching our 2027 targets one year early. That is why we are now presenting our 2030. Ambition is a growth. Looking from 2025, NOK 2.5 billion, going to 2030, deliver NOK 6 billion. That is an annual revenue cover of 19%. This ambition is built based on plans broken down or built up in each of the existing segments. We have an ambition when it comes to EBIT margin to be in the range of 20% to 25%. We will give you some more flavor to what is underneath. This is, as the previous plans, organic revenue ambitions. Any inorganic is add-on to our ambition. We will continue to work to find good targets for inorganic growth to accelerate the growth further.

Speaker #1: That's why we're now presenting over 2030. Yeah. So ambition is a growth from—so looking from 2025: 2.5 billion, going to 2030, deliver 6 billion.

Speaker #1: That's an annual revenue coverage of 19%. This ambition is based on plans that are broken down or built up in each of the existing segments.

Speaker #1: And we have an ambition, when it comes to EBIT margin, to be in the range of 20 to 25%. We'll give you some more flavor as to what's underneath.

Per Jørgen Weisethaunet: We have an ambition when it comes to EBIT margin to be in the range of 20% to 25%. We will give you some more flavor to what is underneath. This is, as the previous plans, organic revenue ambitions. Any inorganic is add-on to our ambition. We will continue to work to find good targets for inorganic growth to accelerate the growth further.

Speaker #1: This is as per the previous plan's organic revenue ambitions. Any inorganic growth is an add-on to our ambition. We will continue to work to find good targets for inorganic growth to accelerate the growth further.

Speaker #1: Looking into some drivers, starting a little bit with the Oceans domain. This is Oceans at a brief. Oceans is by far the most global part of our business.

Per Jørgen Weisethaunet: Looking into some drivers, starting a little bit in the Oceans domain. This is Oceans at a brief. Oceans is the by far most global part of our business. I think last year we delivered sonars and other sensors to around 70 different countries around the globe. You see we have included a geography split. Oceans is very much specialized in advanced acoustics technology, underwater acoustics. We have a wide range of applications. As you can see, we have multibeam sonars. It is sonars for surveillance. It is so-called side scan sonars. Now after the acquisition of Water Linked, we have also Doppler velocity loggers. Some sub-bottom profilers after the acquisition of Innomar. These 3D sonars is added into our portfolio as part of the Water Linked acquisition. It is a very diversified client base. As I said, it is geographically very spread. It is across many different industries.

Speaker #1: I think last year we delivered sonars and other sensors to around 70 different countries around the globe. You see, we have included a geography split.

Speaker #1: Oceans is very much specialized in advanced acoustics technology—underwater acoustics. We have a wide range of applications, and as you could see, we have multibeam sonars.

Per Jørgen Weisethaunet: As you can see, we have multibeam sonars. It is sonars for surveillance. It is so-called side scan sonars. Now after the acquisition of Water Linked, we have also Doppler velocity loggers. Some sub-bottom profilers after the acquisition of Innomar. These 3D sonars is added into our portfolio as part of the Water Linked acquisition. It is a very diversified client base. As I said, it is geographically very spread. It is across many different industries.

Speaker #1: It's sonars for surveillance. It's so-called side-scan sonars. Now, after the acquisition of Water Linked, we have also Doppler velocity loggers and some sub-bottom profilers after the acquisition of Enomar.

Speaker #1: And also, these 3D sonars are added into our portfolio as part of the WaterLinked acquisition. It's a very diversified client base. As I said, it's geographically very spread.

Speaker #1: It's across many different industries: dredging, construction, research, scientific, offshore energy, defense, governmental, survey companies. We've included a grouping of revenues. As you see, we've been challenged: what's your defense share? When we report, we have 'security sector' which is more narrow. We've then added now what is 'defense,' so this is deliveries to any defense-related player, even if it's a civil application it's used for, or if it's a military application.

Per Jørgen Weisethaunet: Dredging, construction, research, scientific, offshore energy, defense, governmental, survey companies. We have included a grouping of revenues. As you see, we have been challenged, what is your defense share? When we report, we have a security sector, which is more narrow. We have then added now what is defense. So this is deliveries to any defense-related player, even if it is a civil application it is used for or if it is a military application. So that is a new split. We see strong and increasing demand for Oceans mapping and insight. I think we have said before that 70% of the globe is covered by water, and it is a single-digit percent that has been explored. Resources in the Oceans is still important. There is an increased demand for security and defense. It is also, as we see it, expanded offshore infrastructure and operations offshore, which will need sensors for mapping, monitoring, and surveillance.

Speaker #1: So, that's a new split. We see strong and increasing demand for ocean mapping and insight. I think we've said before that 70% of the globe is covered by water, and only a single-digit percent has been explored.

Per Jørgen Weisethaunet: We see strong and increasing demand for Oceans mapping and insight. I think we have said before that 70% of the globe is covered by water, and it is a single-digit percent that has been explored. Resources in the Oceans is still important. There is an increased demand for security and defense. It is also, as we see it, expanded offshore infrastructure and operations offshore, which will need sensors for mapping, monitoring, and surveillance.

Speaker #1: Resources in the oceans are still important, and there is an increased demand for security and defense. We are also seeing expanded offshore infrastructure and operations offshore, which will need sensors for mapping, monitoring, and surveillance.

Speaker #1: So, why should NORBIT and the Oceans part be relevant for these drivers or vice versa? We believe we have very good domain knowledge and an ability to utilize this domain knowledge. We understand the clients so that we can create products that matter.

Per Jørgen Weisethaunet: Why should NORBIT and the Oceans part be relevant for these drivers or vice versa? We believe to have very good domain knowledge and an ability to utilize this domain knowledge. We understand the clients, so that we can create products that matter. We have a quite broad and established sales and distribution platform. It is very global, as said, in this segment. Being as vertically integrated as we are, I think our turnaround time to act from opportunity arises until we have been able to design, industrialize, and produce is strong. Strategic priorities within Oceans to reach our 2030 ambition is to continue to strengthen our position as an independent sensor provider. This means that you saw all these products, we will have more of those.

Speaker #1: We have a quite broad and established sales and distribution platform. It's very global, as said in this segment. And being as vertically integrated as we are, I think our turnaround time to act—from when an opportunity arises until we have been able to design, industrialize, and produce—is strong.

Per Jørgen Weisethaunet: Being as vertically integrated as we are, I think our turnaround time to act from opportunity arises until we have been able to design, industrialize, and produce is strong. Strategic priorities within Oceans to reach our 2030 ambition is to continue to strengthen our position as an independent sensor provider. This means that you saw all these products, we will have more of those.

Speaker #1: Strategic priorities within Oceans to reach our 2030 ambition are to continue to strengthen our position as an independent sensor provider. This means that, as you saw with all these products, we will have more of those, and we strongly believe that being an independent technology partner for all those making new kinds of underwater and surface sea drones is valued by a lot of clients.

Per Jørgen Weisethaunet: We strongly believe that being an independent technology partner for all those making new kind of underwater and surfaced sea drones is valued by a lot of clients, instead of thinking that we should go upwards in the value chain and start to be one of them. So the 2030 ambition is built on continuing to keep that position and continue to broaden the product offering. As we have shown in this segment, we will do selected M&A to expand and also relevant for expansion of market access. So the ambition in Oceans, this is built from different products in different markets with different clients. We have been working a lot involving all the commercial skilled people we have in dialogue also with the R&D capabilities. We have landed that our ambition is to deliver in the range of 2 billion NOK for Oceans in 2030.

Speaker #1: Instead of thinking that we should go upwards in the value chain and start to be one of them, the 2030 ambition is built on continuing to keep that position and continuing to broaden the product offering.

Speaker #1: And as we've shown in this segment, we will do selected M&A to expand and also, relevant for expansion, to market access. So the ambition in Oceans—this is built from different products in different markets with different clients. We've been working a lot, involving all the commercial skilled people we have, in dialogue also with the R&D capabilities, and we've landed that our ambition is to deliver in the range of NOK 2 billion for Oceans in 2030.

Per Jørgen Weisethaunet: As we have shown in this segment, we will do selected M&A to expand and also relevant for expansion of market access. So the ambition in Oceans, this is built from different products in different markets with different clients. We have been working a lot involving all the commercial skilled people we have in dialogue also with the R&D capabilities. We have landed that our ambition is to deliver in the range of 2 billion NOK for Oceans in 2030.

Per Jørgen Weisethaunet: Then I will go to Connectivity. Connectivity is, as we have said, a player delivering secure wireless communication technology. We have been able to build a strong position as an independent technology supplier to European blue-chip customers. In addition to the different on-board units, satellite-based tolling, tachograph enforcement, these very tolling-related technologies, we also have decades of experience doing other kind of radio frequency and microwave technology-based solutions. We have naval antenna systems, radar components, and air navigation systems and monitors as part of the product portfolio and as part of our technology toolbox. That, as I explained on the Oceans part, the vertically integrated business model is also important for Connectivity. Being able to do design for high-volume manufacturing while doing design of the high-volume robotized assembly lines is a strong advantage.

Speaker #1: And then I'll go to Connectivity. Connectivity is, as we've said, a player delivering secure wireless communication technology. We've been able to build a strong position as an independent technology supplier to European blue-chip customers.

Speaker #1: In addition to the different onboard unit satellite-based tolling, tachograph enforcement, and these very tolling-related technologies, we also have decades of experience doing other kinds of radio frequency and microwave technology-based solutions. We have naval antenna systems, radar components, and air navigation systems and monitors as part of the product portfolio and as part of our technology toolbox.

Per Jørgen Weisethaunet: We have naval antenna systems, radar components, and air navigation systems and monitors as part of the product portfolio and as part of our technology toolbox. That, as I explained on the Oceans part, the vertically integrated business model is also important for Connectivity. Being able to do design for high-volume manufacturing while doing design of the high-volume robotized assembly lines is a strong advantage.

Speaker #1: And, as I explained on the Oceans part, the vertically integrated business model is also important for connectivity. Being able to do design for high-volume manufacturing, while doing design of the high-volume, robotized assembly lines, is a strong advantage.

Speaker #1: Most of the contracts in this domain, at least the tolling part, are very much structured as frame agreements. If you look at the geographical split, this is a European business.

Per Jørgen Weisethaunet: Most of the contracts in this domain, at least the tolling part, is very much structured as frame agreements. You look on the geographical split, this is a European business as of today. As you see also, the vast majority is related to tolling. Going forward, we think there is lots of good opportunities to broaden. The market drivers we have identified is this transition towards usage-based mobility models. The GNSS On-Board Unit is an example of that. Pay per driven kilometer and not pay based on, as we have in the Norwegian AutoPASS system, gantry-based for sections. We see a strong increased demand for technology made in Europe, and it is an increasing demand for secure and resilient connectivity. That is where we really believe that this radio frequency and microwave experience and skills matters.

Speaker #1: As of today, and as you see, also, a lot—the vast majority—is related to tolling. Going forward, we think there are lots of good opportunities to broaden.

Speaker #1: The market drivers we have identified is this transition towards usage-based mobility models. The GNSS onboard unit is an example of that—pay per driven kilometer, and not pay based on, as we have in the Norwegian Autopass system, gantry-based for sections.

Per Jørgen Weisethaunet: Pay per driven kilometer and not pay based on, as we have in the Norwegian AutoPASS system, gantry-based for sections. We see a strong increased demand for technology made in Europe, and it is an increasing demand for secure and resilient connectivity. That is where we really believe that this radio frequency and microwave experience and skills matters.

Speaker #1: We see a strong, increased demand for technology made in Europe, and it's an increasing demand for secure and resilient connectivity. That's where we really believe that this radio frequency and microwave experience and skills matter.

Speaker #1: So, the enablers—we have a position as a strong technology partner with these mentioned blue-chip clients. We have very strong customer references, deep competence across different wireless technology domains, and the capabilities of doing scalable industrial solutions. Priorities on how to reach our 2030 ambition will further expand to build on this position as a technology partner for the existing customer base.

Per Jørgen Weisethaunet: The enablers, we have a position as a strong technology partner with these mentioned blue-chip clients. We have very strong customer references, deep competence across different wireless technology domains, and the capabilities of doing scalable industrial solutions. Priorities, how to reach our 2030 ambition. We will further expand to build on this position as a technology partner for the existing customer base. We will broaden into selected adjacent Connectivity markets. We used the word in the past to go beyond traffic. We will also continue to explore more for M&A that could further fuel this expansion. Ambition in Oceans is to deliver NOK 1.5 billion in revenues 2030. This represent a 20% CAGR for the period. Final segment, product innovation and realization, also a very European business. We do contract manufacturing, act as an EMS, and we do R&D services, both towards high demanding clients.

Speaker #1: We'll broaden into selected adjacent connectivity markets. We've used the word in the past to go beyond traffic, and we'll also continue to explore more for M&A that could further fuel this expansion.

Per Jørgen Weisethaunet: We used the word in the past to go beyond traffic. We will also continue to explore more for M&A that could further fuel this expansion. Ambition in Oceans is to deliver NOK 1.5 billion in revenues 2030. This represent a 20% CAGR for the period. Final segment, product innovation and realization, also a very European business. We do contract manufacturing, act as an EMS, and we do R&D services, both towards high demanding clients.

Speaker #1: Ambition in Oceans is to deliver NOK 1.5 billion in revenues by 2030. This represents 20% cargo for the period. Final segment product innovation and realization is also a very European business.

Speaker #1: We do contract manufacturing, act as an EMS, and we do R&D services. Both towards high-demanding clients—we're best at competing when it's not so easy to make what we're challenged to do.

Per Jørgen Weisethaunet: We are best at competing when it is not so easy to make what we are challenged to do. We are offering, as said, R&D services and the full range of what you can expect from an EMS. I think we have some advantages compared to pure EMS, given that we are also a technology company with a very broad R&D team that can support. I think also for some clients, our customer empathy becomes more relevant given that we are out in some end markets ourselves, also with proprietary technology, so that we understand their challenges quite well. In this vertical also, in addition to getting economy of scale and getting a benchmark of our own capacities, it also gives us a good diversification. Both the segment as such, but also adding different things into the segment. A lot of contracts are for this also structured as frame agreements.

Speaker #1: We're offering, as said, R&D services and the full range of what you can expect from an EMS. I think we have some advantages compared to pure EMS, given that we're also a technology company with a very broad R&D team that can support. I think also, for some clients, our customer empathy becomes more relevant, given that we are out in some end markets ourselves, also with proprietary technology, so that we understand their challenges quite well.

Per Jørgen Weisethaunet: I think also for some clients, our customer empathy becomes more relevant given that we are out in some end markets ourselves, also with proprietary technology, so that we understand their challenges quite well. In this vertical also, in addition to getting economy of scale and getting a benchmark of our own capacities, it also gives us a good diversification. Both the segment as such, but also adding different things into the segment. A lot of contracts are for this also structured as frame agreements.

Speaker #1: In this vertical, also, in addition to getting economy of scale and getting a benchmark over our own capacities, it also gives us good diversification—both in the segment as such, but also by adding different things into the segment.

Speaker #1: A lot of contracts are also structured as frame agreements. Going forward, you will probably hear us talk more about NORBIT, your scaling partner when 'Made in Europe' matters.

Per Jørgen Weisethaunet: Going forward, you probably will hear us talk more about NORBIT, your scaling partner when made in Europe matters. That is part of the strategy. We have identified as drivers growing defense and security demand all over the globe and especially in Europe, and increased demand for made in Europe, and also this digitalization across industries. We think that the latest period where we have shown our ability to really scale, that is an enabler itself. We see potential clients that are very much in a hurry. They need someone that could support them to scale fast, then this reference is an enabler. The R&D and the industrialization capacities and having a Norwegian manufacturing base itself, we identify as an enabler. So, how to reach Per Jørgen's 2030 ambitions. We continue to be cherry-picking. We have to do targeted client acquisitions. We would like to broaden industry focus.

Speaker #1: So that's part of the strategy. We have identified drivers growing defense and security demand all over the globe, and especially in Europe, and increased demand for made-in-Europe.

Speaker #1: And also, this digitalization across industries. We think that the latest period, where we've shown our ability to really scale, that's an enabler itself. We see potential clients that are very much in a hurry—they need someone that can support them to scale fast. Then, these references are an enabler: the R&D and the industrialization capacities, and having a Norwegian manufacturing base itself, we identify as an enabler.

Per Jørgen Weisethaunet: We see potential clients that are very much in a hurry. They need someone that could support them to scale fast, then this reference is an enabler. The R&D and the industrialization capacities and having a Norwegian manufacturing base itself, we identify as an enabler. So, how to reach Per Jørgen's 2030 ambitions. We continue to be cherry-picking. We have to do targeted client acquisitions. We would like to broaden industry focus.

Speaker #1: So, how to reach PIR's 2030 ambitions? We cannot continue to be cherry-picking; we have to do targeted client acquisitions. We'd like to broaden our industry focus. We've commented earlier that, during the last period, the customer concentration in this vertical is higher than it was, and we'll therefore also work to broaden the industry focus.

Per Jørgen Weisethaunet: We've commented on earlier that during the last period, the customer concentration in this vertical is higher than it was, and we'll therefore also work to broaden the industry focus. M&A could be relevant also in this vertical. To the numbers, 2030 ambition, around NOK 2.5 billion in revenues. That's 18% CAGR. With that, I'll leave the floor back to Per Kristian to give us some on the financial and capital allocation framework for the 2030 ambitions.

Speaker #1: And M&A could be relevant also in this vertical. To the numbers—2030 ambition, around NOK 2.5 billion in revenues, that’s 18% CAGR. With that, I'll leave the floor back to Christian to give us some on the financial and capital allocation framework for the 2030 ambitions.

Speaker #1: Thank you, Per Jürgen. In the strategy period ahead of us, we have an ambition to deliver 19% revenue CAGR from 2025, and an EBIT margin between 20% and 25%.

Per Kristian Reppe: Thank you, Per Jørgen. In the strategy period ahead of us, we have an ambition to deliver 19% revenue CAGR from 2025, an EBIT margin between 20% and 25%, a return on capital employed of more than 30%, and maintain a conservative leverage policy in which our net debt to EBITDA ratio over the cycle is targeted to 1 to 2.5x. As for the operating margin ambition, we are making a positive revision in which the previous plan from 2024 to 2027 included a margin target of around 20%. Today, we are presenting a blended operating margin target for the group of between 20% to 25%. In Oceans and Connectivity, where we base our offering on NORBIT intellectual property, our ambitions reflect what we believe is an acceptable margin for developing advanced high-technology products and solutions.

Speaker #1: A return on capital employed of more than 30%, and maintain a conservative leverage policy in which our net debt to EBITDA ratio over the cycle is targeted to 1 to 2.5 times.

Speaker #1: As for the operating margin ambition, we are making a positive revision, in which the previous plan from 2024 to 2027 included a margin target of around 20%.

Per Kristian Reppe: As for the operating margin ambition, we are making a positive revision in which the previous plan from 2024 to 2027 included a margin target of around 20%. Today, we are presenting a blended operating margin target for the group of between 20% to 25%. In Oceans and Connectivity, where we base our offering on NORBIT intellectual property, our ambitions reflect what we believe is an acceptable margin for developing advanced high-technology products and solutions.

Speaker #1: Today we are presenting a blended operating margin target for the group of between 20% to 25%. In Oceans and Connectivity, where we base our offering on NORBIT intellectual property, our ambitions reflect what we believe is an acceptable margin for developing advanced high-technology products and solutions.

Speaker #1: Over the next years, we have an ambition to deliver an EBIT margin between 25% and 30% in these two segments, in line with what's been achieved over the last years.

Per Kristian Reppe: Over the next years, we have an ambition to deliver an EBIT margin between 25% and 30% in these two segments, in line with what's been achieved over the last years. As for segment PIR, our ambition going forward is to deliver a margin between 15% and 20%. This is an adjustment compared to the previous plan, as the segment has shown strong cost discipline and better than expected operational leverage. Also taking into account the major investments we have made in automation in the last two years. Our capital allocation framework has served the company well in recent years, creating significant shareholder value. We remain committed to this framework also in the years to come.

Speaker #1: As for segment PIR, our ambition going forward is to deliver a margin between 15 and 20%. This is an adjustment compared to the previous plan, as the segment has shown strong cost discipline and better-than-expected operational leverage, also taking into account the major investments we have made in automation in the last two years.

Per Kristian Reppe: Also taking into account the major investments we have made in automation in the last two years. Our capital allocation framework has served the company well in recent years, creating significant shareholder value. We remain committed to this framework also in the years to come.

Speaker #1: Our capital allocation framework has served the company well in recent years, creating significant shareholder value. We remain committed to this framework in the years to come.

Speaker #1: As part of the capital allocation framework, we aim to continue to remain a financially robust company, supporting the flexibility needed to grow towards the set ambitions by investing and employing capital in creative R&D projects.

Per Kristian Reppe: As part of the capital allocation framework, we aim to continue to remain a financially robust company, supporting the flexibility needed to grow towards the set ambitions by investing and employing capital in accretive R&D projects and expanding our production capacity. In order to accelerate growth, we will continue to explore value accretive acquisitions through our defined criteria. Capital left shall be distributed to shareholders subject to the dividend and the financial policies. Priority number 1 is to maintain a solid balance sheet and protect our financial stability and flexibility, making sure that we at all times have a prudent capital structure.

Speaker #1: And expanding our production capacity. In order to accelerate growth, we will continue to explore value-accretive acquisitions through our defined criteria. Capital left shall be distributed to shareholders, subject to the dividend and the financial policies.

Per Kristian Reppe: Capital left shall be distributed to shareholders subject to the dividend and the financial policies. Priority number 1 is to maintain a solid balance sheet and protect our financial stability and flexibility, making sure that we at all times have a prudent capital structure.

Speaker #1: Priority number one is to maintain a solid balance sheet and protect our financial stability and flexibility, making sure that we at all times have a prudent capital structure.

Speaker #1: With a net debt to EBITDA of 1.1 after the Water Linked acquisition, and a liquidity buffer of close to NOK 800 million as per the end of the second quarter, our balance sheet is rock solid.

Per Kristian Reppe: With a net debt to EBITDA of 1.1 after the Water Linked acquisition and a liquidity buffer close to NOK 800 million as per the end of Q2, our balance sheet is rock solid, allowing us to invest, pursue strategic acquisitions, as well as distribute dividends to our shareholders. Our financial policy is to maintain net debt to EBITDA ratio of between 1 and 2.5x. The interval allows us to dynamically prioritize how we allocate our capital and execute on our framework. In a scenario where we are above the interval, we will prioritize and allocate our operational cash flow to repay debt. In a scenario where we are below, we will have the capacity to allocate additional capital for investments, acquisitions, and dividends. Organic investments have been the primary driver for us reaching our revenue ambitions in the past strategy periods.

Speaker #1: Allowing us to invest, pursue strategic acquisitions, as well as distribute dividends to our shareholders. Our financial policy is to maintain a net debt to EBITDA ratio of between 1 and 2.5 times.

Speaker #1: The interval allows us to dynamically prioritize how we allocate our capital and execute on our framework. In a scenario where we are above the interval, we will prioritize and allocate our operational cash flow to repay debt. In a scenario where we are below, we will have the capacity to allocate additional capital for investments, acquisitions, and dividends.

Per Kristian Reppe: In a scenario where we are above the interval, we will prioritize and allocate our operational cash flow to repay debt. In a scenario where we are below, we will have the capacity to allocate additional capital for investments, acquisitions, and dividends. Organic investments have been the primary driver for us reaching our revenue ambitions in the past strategy periods.

Speaker #1: Organic investments have been the primary driver for us reaching our revenue ambitions in past strategy periods. We aim to continue to invest in R&D projects with an attractive risk-adjusted return profile, in order to continue broadening the product offering in Oceans and Connectivity.

Per Kristian Reppe: We aim to continue to invest in R&D projects with an attractive risk-adjusted return profile in order to continue broadening the product offering in Oceans and Connectivity. In 2026, we expect to allocate around NOK 120 million in R&D investments, excluding Water Linked. Over the strategy period, we expect that the nominal level will increase each year with a target of 4% to 6% of group revenues. At NORBIT, we manufacture what we sell. We believe it is a competitive advantage. We remain in control, and it ensures flexibility, scalability, and reliability. This year, investments in machinery and equipment are expected to be around NOK 110 million, and it follows a 2025 also with a high investment level. All needed to enable the organic growth we have seen historically and building preparedness. Over the last years, we have prioritized automation and expanding our floor capacity.

Speaker #1: In 2026, we expect to allocate around NOK 120 million in R&D investments, excluding Water Linked. Over the strategy period, we expect that the nominal level will increase each year, with a target of 4 to 6% of group revenues.

Speaker #1: At NORBIT, we manufacture what we sell. We believe it's a competitive advantage. We remain in control, and it ensures flexibility, scalability, and reliability. This year, investments in machinery and equipment are expected to be around NOK 110 million.

Per Kristian Reppe: We remain in control, and it ensures flexibility, scalability, and reliability. This year, investments in machinery and equipment are expected to be around NOK 110 million, and it follows a 2025 also with a high investment level. All needed to enable the organic growth we have seen historically and building preparedness. Over the last years, we have prioritized automation and expanding our floor capacity.

Speaker #1: And it follows that 2025 also comes with a high investment level, all needed to enable the organic growth we've seen historically and to build preparedness. Over the last years, we have prioritized automation and expanding our floor capacity.

Speaker #1: Our SMT line capacity has been increased significantly, while the floor capacity has been expanded both at Serbu and Rhodos. Going forward, we target to invest between 3% to 4% of group revenues in fixed assets, with a focus on automation to ensure scalable production.

Per Kristian Reppe: Our SMT line capacity has been increased significantly, while the floor capacity has been expanded both at Selbu and Røros. Going forward, we target to invest between 3% to 4% of group revenues in fixed assets. We focus on automation to ensure a scalable production. In 2025, we delivered a pre-tax return on capital employed of 34%, up from 27% in 2024. Last 12 months, return on capital employed was 36%. Our return on capital employed ambition moving forward is more than 30%. To realize that ambition requires a continued focus on delivering profitable growth, as well as working actively to optimize our balance sheet. This includes prioritizing the most attractive investment opportunities and managing our working capital efficiently. Improving our capital efficiency has been a core focus over the last four years. Significant efforts have been made, turning into tangible results.

Speaker #1: In 2025, we delivered a pre-tax return on capital employed of 34%, up from 27% in 2024. The last 12 months' return on capital employed was 36%.

Speaker #1: Our return on capital employed ambition moving forward is more than 30%. To realize that ambition requires a continued focus on delivering profitable growth, as well as working actively to optimize our balance sheet.

Per Kristian Reppe: Our return on capital employed ambition moving forward is more than 30%. To realize that ambition requires a continued focus on delivering profitable growth, as well as working actively to optimize our balance sheet. This includes prioritizing the most attractive investment opportunities and managing our working capital efficiently. Improving our capital efficiency has been a core focus over the last four years. Significant efforts have been made, turning into tangible results.

Speaker #1: This includes prioritizing the most attractive investment opportunities and managing our working capital efficiently. Improving our working capital efficiency has been a core focus over the last four years.

Speaker #1: Significant efforts have been made, turning into tangible results. As of the end of the second quarter this year, our nominal working capital level was the same as it was in 2022, while our revenues in that same period are up two and a half times.

Per Kristian Reppe: As per the end of Q2 this year, our nominal working capital level was at the same as it was per year-end 2022, while our revenues in that same period is up 2.5x. I am deeply impressed by what our colleagues have been able to achieve. As we move forward, the ambition is to deliver on a working capital target level of 20% or below compared to revenues, making sure that we balance and optimize without compromising NORBIT's core value number 1, we deliver. Over the last years, we have stepped up on our M&A agenda as well and allocated around NOK 250 million each year since 2023 into acquisitions. These investments have predominantly been made in Oceans, with the acquisition of Ping DSP in 2023, Innomar in 2024, and now Water Linked in 2026.

Speaker #1: I'm deeply impressed by what our colleagues have been able to achieve, and as we move forward, the ambition is to deliver on a working capital target level of 20% or below compared to revenues.

Speaker #1: Making sure that we balance and optimize without compromising NORBIT's core value number one: we deliver. Over the last years, we have stepped up on our M&A agenda as well, and allocated around NOK 250 million each year since 2022 and 2023 into acquisitions.

Per Kristian Reppe: Over the last years, we have stepped up on our M&A agenda as well and allocated around NOK 250 million each year since 2023 into acquisitions. These investments have predominantly been made in Oceans, with the acquisition of Ping DSP in 2023, Innomar in 2024, and now Water Linked in 2026.

Speaker #1: These investments have predominantly been made in Oceans, with the acquisition of Ping DSP in '23, Inomar in '24, and now Water Linked in '26.

Speaker #1: We aim to continue to look for attractive companies that can broaden our technology base and market access in oceans and connectivity. Within PIR, we are opportunistically evaluating businesses that can provide additional customer diversification and market access.

Per Kristian Reppe: We aim to continue to look for attractive companies that can broaden our technology base and market access in Oceans and Connectivity. Within PIR, we are opportunistically evaluating businesses that can provide additional customer diversification and market access. It is part of NORBIT's core purpose to explore more. This also applies to our M&A agenda. Exploring the potential for a fourth segment is part of that, supporting the ambition of building a larger technology company and creating additional diversification across customers, technology, and markets. As we head towards 2030, our ambition is to achieve more than what we have done so far. We aim to do so in a disciplined manner, not compromising on our selection criteria operationally, strategically, as well as financially.

Speaker #1: It is part of NORBIT's core purpose to explore more. This also applies to our M&A agenda. Exploring the potential for a fourth segment is part of that.

Per Kristian Reppe: This also applies to our M&A agenda. Exploring the potential for a fourth segment is part of that, supporting the ambition of building a larger technology company and creating additional diversification across customers, technology, and markets. As we head towards 2030, our ambition is to achieve more than what we have done so far. We aim to do so in a disciplined manner, not compromising on our selection criteria operationally, strategically, as well as financially.

Speaker #1: Supporting the ambition of building a larger technology company and creating additional diversification across customers, technology, and markets. As we head towards 2030, our ambition is to achieve more than what we have done so far.

Speaker #1: But we aim to do so in a disciplined manner, not compromising on our selection criteria—operationally, strategically, as well as financially. And lastly, to wrap up today's presentation, our dividend policy remains unchanged.

Per Kristian Reppe: Lastly, to wrap up today's presentation, our dividend policy remains unchanged, meaning a distribution of 30% or more of the net profit after tax with the intention to pay out potential excess capital to the shareholders. That concludes our two presentations today, and we now open up for the Q&A session. Okay. We will start with a question on the NORBIT brand. How does NORBIT management think about the trust embedded in the NORBIT brand among end customers. How is this trust protected and leveraged when integrating acquisitions such as Water Linked?

Speaker #1: Meaning a distribution of 30% or more of the net profit after tax, with the intention to pay out potential excess capital to the shareholders.

Speaker #1: That concludes our two presentations today, and we will now open up for the Q&A session. Okay, we'll start with a question on the NORBIT brand.

Speaker #1: How does NORBIT management think about the trust embedded in the NORBIT brand among end customers and how is this trust protected and leveraged when integrating acquisitions such as water linked?

Speaker #2: Yeah. So that's a that's a very good question. And I think so the NORBIT brand is very strong in the markets where we have really been focusing so I think any player in the in the domain having a need for a multi-beam sonar will regard NORBIT as a as a good alternative.

Per Jørgen Weisethaunet: Yeah. That is a very good question. I think the NORBIT brand is very strong in the markets where we have really been focusing. I think any player in the domain having a need for a multibeam sonar will regard NORBIT as a good alternative. I think also in the tolling industry, NORBIT has a strong standing. Of course, this is something we need to work hard to maintain every day. It is not only a matter of quality, it is a matter of behavior towards clients and colleagues and suppliers and community. When getting on board new companies we will need to have something to offer. By having something to offer, hopefully new companies will embrace the full part of the NORBIT culture. Then, of course, also work hard to help build their brand. That said, it was a specific part of the question also with Water Linked.

Speaker #2: I think also in the towing industry NORBIT has a strong standing. Of course this is this is something we need to work hard to maintain every day.

Speaker #2: It's not only a matter of quality; it's a matter of behavior towards clients, colleagues, suppliers, and the community. When getting on board new companies, we'll need to have something to offer, and by having something to offer, hopefully new companies will embrace the full part of the NORBIT culture. Then, of course, also work hard to help build a brand.

Per Jørgen Weisethaunet: When getting on board new companies we will need to have something to offer. By having something to offer, hopefully new companies will embrace the full part of the NORBIT culture. Then, of course, also work hard to help build their brand. That said, it was a specific part of the question also with Water Linked.

Speaker #2: That said, it was a specific part of the question. Also, with Water Linked, do you think Water Linked as a brand itself on Doppler Velocity Loggers is very strong?

Per Jørgen Weisethaunet: We think Water Linked as a brand itself on Doppler velocity loggers is very strong. So what we do is we will continue operating Water Linked as a NORBIT company, trying to use the strength from the NORBIT brand as an endorser for the Water Linked brand.

Speaker #2: So what we do is, we will continue operating Water Linked as a NORBIT company, trying to use the strength from the NORBIT brand as an endorser for the Water Linked brand.

Speaker #1: You commented specifically on the visibility within Oceans, but would it be possible to also comment on the visibility in the two other segments? Moreover, has the visibility within PIR improved in recent years? And within PIR, would it be possible to comment on the customer concentration?

Per Kristian Reppe: You comment specifically on the visibility within Oceans, but would it be possible to also comment on the visibility in the two other segments? Moreover, has the visibility within PIR improved in recent years? Within PIR, would it be possible to comment on the customer concentration? Within PIR, the visibility has become lower in recent years. That has primarily been driven by the shift from automotive, which has a more longer visibility on the production cycles compared to what we see now in defense and security. With regards to the customer concentration, what we have been reporting in the past is that the customer concentration in the PIR segment is relatively high, and that's also reflected in how we think about the priorities in the strategy period up against the 2030 ambition plan. You highlight broadening the pure customer base as a priority.

Speaker #2: Within PIR, the visibility has become lower in recent years, and that has primarily been driven by the shift from automotive, which has a longer visibility on the production cycles, compared to what we see now in defense and security.

Speaker #2: With regards to customer concentration, what we have been reporting in the past is that the customer concentration in the PIR segment is relatively high, and that's also reflected in how we think about the priorities in the strategy period up against the 2030 ambition plan.

Per Kristian Reppe: With regards to the customer concentration, what we have been reporting in the past is that the customer concentration in the PIR segment is relatively high, and that's also reflected in how we think about the priorities in the strategy period up against the 2030 ambition plan. You highlight broadening the pure customer base as a priority.

Speaker #1: You highlight broadening the peer customer base as a priority. Can you give us some sense of the current customer concentration? I believe that was already answered.

Per Kristian Reppe: Can you give us some sense of the current customer concentration? I believe that was already answered. You won two surveillance sonar contracts worth NOK 50 million. Can you say anything about win rates, competitive environment, and general activity in this market?

Speaker #1: You want two surveillance sonar contracts worth 50 million kroner. Can you say anything about win rates, the competitive environment, and general activity in this market?

Speaker #2: Yeah, so I think—I don't know where this $50 million was mentioned in the report. Okay, good. It's satisfying to see that after a long period of quiet on the surveillance sonars, we've got some very good contracts in the market, which we continue to believe will be a relevant part of our continued growth.

Per Jørgen Weisethaunet: I don't know where this NOK 50 million was mentioned in the report.

Per Kristian Reppe: Yeah.

Per Jørgen Weisethaunet: Okay, good. It's satisfying to see that after a long period of quite quiet on the surveillance sonars. We've got some very good contracts. The market, which we continue to believe will be relevant part of our continued growth, has proven to materialize. What was the accurate part of the question again?

Speaker #2: Has proven to, to, to materialize. Yeah, so what was the accurate part of the question again?

Speaker #1: Can you say anything about win rates, the competitive environment, and general activity in this market?

Per Kristian Reppe: Can you say anything about win rates, competitive environment, general activity in this market?

Speaker #2: Yeah so so I think in the past we've seen increasing lead pipe and postponements of decisions. So so we believe that we have a good offering compared to competition and we we think that the market might might start to to to pick up even if this this is I mean it's a few orders being quite large so when you have a couple of them at the same time it's more and then maybe a quarter there is none again.

Per Jørgen Weisethaunet: Well, I think in the past, we've seen increasing lead time and postponements of decisions. We believe that we have a good offering compared to competition. We think that the market might start to pick up even if it's a few orders being quite large. So when you have a couple of them at the same time, it's more than maybe a quarter, there is none again.

Speaker #2: So

Speaker #1: There appears to be a large number of autonomous maritime projects, but many remain at relatively low volumes. Are you seeing any evidence that customers are moving from demonstrations and initial deployments to fleet-scale procurements?

Per Kristian Reppe: There appears to be a large number of autonomous maritime projects, but many remain at relatively low volumes. Are you seeing any evidence that customers are moving from demonstrations and initial deployments to fleet scale procurements?

Per Jørgen Weisethaunet: I agree there is a lot going on, and it's a lot of different companies. In this domain, there are some well-established industrial players that are doing stuff. On the other end of the scale, you see US-based very venturous companies. Again, for us, we would like to be the technology partner for any initiative. No potential too small, none too large. Whoever takes this market, we'd like to be a partner with them.

Speaker #2: So I I agree there is a there is a lot going on and it's a lot of different companies. I mean it's some in this domain there is some well-established industrial players that are doing stuff and not the other end of the scale you see US-based very very venturous companies and again for us we'd like to be the technology partner for any initiative no potential too small none too large and whoever takes this market with like to be a partner with them.

Speaker #1: Against the Doppler velocity log suppliers such as NORTEC and Teledyne, where does Water Linked sit on the performance versus price curve? In which vehicle classes or applications is it, and is it not, currently competitive?

Per Kristian Reppe: Against the Doppler velocity log suppliers such as Nortek and Teledyne, where does Water Linked sit on the performance versus price curve? In which vehicle classes or application is it not currently competitive?

Speaker #2: So, I don't think we'd like to comment so much on competitors' product portfolios, but our Doppler velocity loggers in Water Linked, I think, stand out as easy to integrate and also highly compact. I think also, with some recent launches, we're taking the first step into a more demanding client segment with more high-performance Doppler velocity loggers.

Per Jørgen Weisethaunet: I do not think we would like to comment so much on competitors' product portfolio, but our Doppler velocity loggers in Water Linked, I think, stands out as easy to integrate and also highly compact. I think also with some recent launch, we are taking the first step also into a more demanding client segment with more high performance Doppler velocity loggers.

Per Kristian Reppe: Ambition 2030, the EBIT margin range of 20% to 25%. If the revenue split you provide takes place, what needs to happen to end in the lower end? Or asked differently, what is the delta in the low and high end or in your targets? The EBIT margin range 20% to 25% is for the group, and that is a blended target. We have given a margin ambition now for each of the three segments, and the blended margin for the group reflects the high and the low-end range that we have communicated today. Is the 2030 organic revenue target assuming innovations, or is it based on your current product portfolio, including Water Linked?

Speaker #1: Ambition 2030. The EBIT margin range of 20 to 25%. If the revenue split you provide takes place, what needs to happen to end up at the lower end?

Speaker #1: Or, said differently, what is the delta between the low and high end, or in your targets?

Speaker #2: So, the EBIT margin range of 20 to 25% is for the group, and that's a blended target. So we've given a margin ambition now for each of the three segments, and the blended margin for the group reflects the high-end and low-end range that we have communicated today.

Speaker #2: So yeah, is the 2030 organic revenue target assuming innovations, or is it based on your current product portfolio, including Water Linked? So I think as you showed in the capital allocation framework also, as I mean, NORBIT is all about tailoring technology to carefully selected applications. What we have fueled or allocated of capital and resources into R&D investments is what has given us the best payback over time.

Per Jørgen Weisethaunet: I think as you showed in the capital allocation framework also, NORBIT is all about tailoring technology to carefully selected applications. What we have fueled or allocated of capital and resources into R&D investments is what has given us the best payback over time. The nominal level of investments will increase with the growth we aim to have. The relative is very much in line with what we have. Being a technology company, the R&D capabilities and investments is vital to fuel this growth.

Speaker #2: The nominal level of investments will increase with the growth we aim to have. The relative is very much in line with what we have, but being a technology company, the capabilities and investments are vital to fuel this growth.

Speaker #1: Could you elaborate on the uncertainty around the timing of additional PIR orders for Q4 delivery, and what needs to happen for revenues to land toward the upper end of the 2.9 to 3.1 billion guidance range?

Per Kristian Reppe: Could you elaborate on the uncertainty around the timing of additional PIR orders for Q4 delivery, and what needs to happen for revenues to land towards the upper end of the NOK 2.9 billion to NOK 3.1 billion guidance range?

Speaker #2: So I think what we've shown in the past also is that there is a short time from when we announce an order until it's expected to be delivered. This remains the same. It might be different kinds of products, which could have different kinds of needs for supply of material, so we are continuously building security stock to meet potential orders. This is done in close cooperation with the clients, but based on what kind of products are being ordered, and security stock and lead time on material could affect the timing on if orders are delivered Q4 or if it could be another timing on that.

Per Jørgen Weisethaunet: I think what we have shown in the past also is that there is a short time from we announce an order until it is expected to be delivered. This remains the same. It might be different kind of products could have different kind of needs for supply of material. We are continuously building security stock to meet potential orders. This is done in close cooperation with the clients, but based on what kind of products being ordered and security stock and lead time on material could affect timing on if orders are delivered Q4 or if it could be other timing on that.

Speaker #1: Have you acquired any new customers within PIR this year?

Per Kristian Reppe: Have you acquired any new customers within PIR this year?

Per Jørgen Weisethaunet: Yes. Not any that we will disclose today, but the answer is yes.

Speaker #2: Yes, not any that we will disclose today, but the answer is yes.

Speaker #1: Could you elaborate on what you mean by secure communications, and more than just traffic? What specific applications or opportunities are you targeting within this area, and how significant could this become as a growth driver for connectivity?

Per Kristian Reppe: Could you elaborate on what you mean by secure communications and more than traffic? What specific applications or opportunities are you targeting within this area, and how significant could this become as a growth driver for Connectivity?

Speaker #2: Yeah so we are already in dialogue with players that has needs for different kind of products where our radio frequency and microwave skills probably is the reason why they sit across the table speaking to NORBIT and not not nothing specific mentioned nothing forgotten but I I think just reminding again of of these these very broad references I mean it's the same group of brilliant engineers that has designed this GNSS onboard unit and also the onboard units that's pure tall tags and this quite big naval antenna systems which goes on submarines the demand for both of this is increasing and I think by showing these differences there there is a lot in between where where there is a need and it's special purpose it's it's I mean it it's not seller phone communication we're not going to be competing with Huawei and Apple but there is a lot of special purpose

Per Jørgen Weisethaunet: Yeah. We are already in dialogue with players that has needs for different kind of products where our radio frequency and microwave skills probably is the reason why they sit across the table speaking to NORBIT. Nothing specific mentioned, nothing forgotten. I think just reminding again of these very broad references. It is the same group of brilliant engineers that has designed this GNSS On-Board Unit and also the onboard units with pure toll tags and this quite big naval antenna systems, which goes on submarines. The demand for both of these is increasing, and I think by showing these differences, there is a lot in between, where there is a need. It is special purpose. It is not cellular phone communication. We are not going to be competing with Huawei and Apple, but there is a lot of special purpose.

Per Jørgen Weisethaunet: It is the same group of brilliant engineers that has designed this GNSS On-Board Unit and also the onboard units with pure toll tags and this quite big naval antenna systems, which goes on submarines. The demand for both of these is increasing, and I think by showing these differences, there is a lot in between, where there is a need. It is special purpose. It is not cellular phone communication. We are not going to be competing with Huawei and Apple, but there is a lot of special purpose.

Speaker #1: You mentioned the potential for a Ford business segment. Is there a particular technology domain or end market you have in mind?

Per Kristian Reppe: You mentioned the potential for a fourth business segment. Is there a particular technology domain or end market you have in mind?

Speaker #2: I mean, NORBIT explores more. We're a technology company with some skill sets. If there are needs in other verticals where it could be that NORBIT makes a difference, we'd like to explore that. The R&D services part of NORBIT has been doing design of technology and products in a very broad scale of industries. In the EMS part, in the manufacturing, it's the same. So the question is, is it in some of these domains where we have the R&D references and the manufacturing capabilities and needs for something new, where we see that NORBIT could be relevant and go into that? And I think, as it's mentioned here, maybe what we've learned is that it's taken us many years—I mean, I had color on my hair, as you, when we started to work with connectivity and oceans—so it takes a lot of time to build up in the market. So if we'd like to go into a new vertical, it might be very relevant to consider M&A as a jump-start to get market access. So, yeah.

Per Jørgen Weisethaunet: NORBIT explore more. We are a technology company with some skill sets. If there are needs in other verticals where it could be that NORBIT makes a difference, we would like to explore that. The R&D services part of NORBIT has been doing design of technology and products in a very broad scale of industries. In the EMS part, in the manufacturing, it is the same. The question is it in some of these domains where we have the R&D references and the manufacturing capabilities needs for something new where we see that NORBIT could be relevant and go into that? I think, as it is mentioned here, maybe what we have learned is that it has taken us many years. I had color on my hair as you when we started to work with Connectivity and Oceans. So it takes a lot of time to build up in the market.

Per Jørgen Weisethaunet: The question is it in some of these domains where we have the R&D references and the manufacturing capabilities needs for something new where we see that NORBIT could be relevant and go into that? I think, as it is mentioned here, maybe what we have learned is that it has taken us many years. I had color on my hair as you when we started to work with Connectivity and Oceans. So it takes a lot of time to build up in the market. If we would like to go into a new vertical, it might be very relevant to consider M&A as a jumpstart to get market access.

Per Jørgen Weisethaunet: If we would like to go into a new vertical, it might be very relevant to consider M&A as a jumpstart to get market access.

Speaker #1: To attract engineering talent, would a reallocation to a more cosmopolitan area like Amsterdam, Berlin, or Copenhagen be required?

Per Kristian Reppe: To attract engineering talent, would a reallocation to a more cosmopolitan area like Amsterdam, Berlin, Copenhagen be required?

Speaker #2: I didn't catch that fully, so...

Per Jørgen Weisethaunet: I did not get that fully.

Speaker #1: To attract engineering talent, would a reallocation to a more cosmopolitan area be required?

Per Kristian Reppe: To attract engineering talent-

Per Jørgen Weisethaunet: Yeah

Per Kristian Reppe: would a reallocation to a more cosmopolitan area be required?

Speaker #2: So it's a it's something wrong with the assumption what's more cosmopolitan I mean so Trondheim is quite in the central of the world isn't it so but attracting talent is very important location could matter but also what we see is that we're not only located in Trondheim sometimes if we need a proper expert we might be located where this expert lives setting up a remote location adding some some support around a a proper top talent we've done in the past and we will probably do that also in in the future so we're we're a global company

Per Jørgen Weisethaunet: So it's something wrong with the assumption what's more cosmopolitan. Trondheim is quite in the center of the world, isn't it? But attracting talent is very important. Location could matter, but also what we see is that we're not only located in Trondheim. Sometimes if we need a proper expert, we might be located where this expert lives. Setting up a remote location, adding some support around a proper top talent, we've done in the past, and we will probably do that also in the future. We're a global company.

Speaker #1: Some questions on Connectivity. Can you give some more color on the Connectivity gross margin decline? How much is driven by component price increases versus mix?

Per Kristian Reppe: Some questions on Connectivity. "Can you give some more color on the Connectivity gross margin decline? How much is driven by component price increases versus mix?

Per Jørgen Weisethaunet: The gross margin decline, as we've written in the report, is primarily explained by the GNSS On-Board Unit, where the memory chips are included in that product. That's the primary driver for the gross margin decline. And the mix effect comes into play in terms of the sharp increase in demand for GNSS On-Board Unit in the quarter.

Speaker #1: The gross margin decline, as we've written in the report, is primarily explained by the GNSS onboard unit, where the memory chips are included in that product, and that's the primary driver for the gross margin decline.

Speaker #1: And the mix effect, you know, comes into play in terms of the sharp increase in demand for GNSS onboard units in a quarter.

Per Kristian Reppe: Mm-hmm. "How should we think about gross margin for the segment into H2? And how are contracts in the GNSS On-Board Unit structured in terms of pass-through of rising component costs? We haven't given any exact guidance on the gross margin for the segment into H2. I don't think we need to be specific on how the contracts are structured in terms of this question in particular. To understand 2030 guidance for Connectivity, how much of growth do you assume to come from new products that currently are not part of your portfolio today?

Speaker #1: How should we think about gross margin for the segment into the second half, and how are contracts in the GNSS onboard unit structured in terms of pass-through of rising component costs?

Per Jørgen Weisethaunet: We haven't given any exact guidance on the gross margin for the segment into H2. I don't think we need to be specific on how the contracts are structured in terms of this question in particular.

Speaker #1: We haven't given any exact guidance on the gross margin for the segment into the second half, and I don't think we need to be specific on how the contracts are structured in terms of this question in particular.

Speaker #1: To understand 2030 guidance for connectivity, how much of the growth do you assume will come from new products that currently are not part of your portfolio today?

Per Kristian Reppe: To understand 2030 guidance for Connectivity, how much of growth do you assume to come from new products that currently are not part of your portfolio today?

Speaker #2: Yeah so I mean if you ask that question two years ago the GNSS onboard unit was not part of the revenues so so I mean this shows the importance of being agile and act upon opportunities I'm convinced that when we're back in 2030 or maybe 2029 if we should make it one year early we have products included that are different products than the ones we have identified and build over growth ambition on that there is some we have on the list we which we strongly believe will materialize that we will prioritize not to do because we've learned something new that's more important so so I think during during the IPO process we were asked what will NORBIT be doing in five years from now I responded I don't have a clue I don't know a lot thought that was a strange and wrong answer I think for NORBIT it's an important answer we we look and we have identified things we believe should be but we don't nail that as a fixed plan because tomorrow we learn something new and we'd like to adapt to that

Per Jørgen Weisethaunet: Yeah. If you ask that question two years ago, the GNSS On-Board Unit was not part of the revenues. This shows the importance of being agile and act upon opportunities. I'm convinced that when we're back in 2030 or maybe 2029, if we should make it one year early, we have products included that are different products than the ones we have identified and build our growth ambition on. There is some we have on the list which we strongly believe will materialize, that we will prioritize not to do because we've learned something new that's more important. I think during the IPO process, we were asked, "What will NORBIT be doing in five years from now?" I responded, "I don't have a clue. I don't know." A lot thought that was a strange and wrong answer. I think for NORBIT, it's an important answer.

Per Jørgen Weisethaunet: There is some we have on the list which we strongly believe will materialize, that we will prioritize not to do because we've learned something new that's more important. I think during the IPO process, we were asked, "What will NORBIT be doing in five years from now?" I responded, "I don't have a clue. I don't know." A lot thought that was a strange and wrong answer. I think for NORBIT, it's an important answer. We look, and we have identified things we believe should be, but we don't nail that as a fixed plan because tomorrow we learn something new, and we'd like to adapt to that.

Per Jørgen Weisethaunet: We look, and we have identified things we believe should be, but we don't nail that as a fixed plan because tomorrow we learn something new, and we'd like to adapt to that.

Per Kristian Reppe: How does NORBIT as an incumbent in many of its markets think about innovation versus cannibalization of their own products?

Speaker #1: How does NORBIT, as an incumbent in many of its markets, think about innovation versus cannibalization of their own products?

Speaker #2: So I mean it's it's better you cannibalize yourself than others do it so I mean this rep yourself is a is a good good good approach to that but I mean if you if you have a strong position in a proper niche I mean this is the beauty what we prioritize tailored technology and carefully selected applications it's the the scalability is right for us the technology threshold should be high over engineers work very hard to be able to design this it's hard in the manufacturing to make it and and then you have a threshold so so you could stay there for for many years so I think some of the products we're still delivering we've been delivering from since many many years but we continue to do incremental changes to them also in addition to making complete new products

Per Jørgen Weisethaunet: It's better you cannibalize yourself than others do it. Disrupt yourself is a good approach to that. But if you have a strong position in a proper niche, this is the beauty of what we prioritize, tailored technology and carefully selected applications. The scalability is right for us. The technology threshold should be high. Our engineers work very hard to be able to design this. It's hard in the manufacturing to make it. Then you have a threshold. You could stay there for many years. I think some of the products we're still delivering, we've been delivering since many years, but we continue to do incremental changes to them also in addition to making complete new products.

Per Jørgen Weisethaunet: Our engineers work very hard to be able to design this. It's hard in the manufacturing to make it. Then you have a threshold. You could stay there for many years. I think some of the products we're still delivering, we've been delivering since many years, but we continue to do incremental changes to them also in addition to making complete new products.

Speaker #1: Okay, I think that was the last question today.

Per Kristian Reppe: Okay. I think that was the last question today.

Per Jørgen Weisethaunet: Thank you all for taking the time and showing the interest.

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