Hello, and welcome to the third quarter presentation for Fjord Defence Group ASA. It will be conducted by me, Jon Asbjørn Bø, the CEO, and Øyvind Mølmann, the CFO.

Let's get started, and thank you for listening. What the fuck is going on here?

Fjord Defence Group is have one company, and as you may know, we have acquired another company yesterday. I will focus most of my presentation on the new company, but just a reminder, we bought in Fjord Defence AS in June and completed the acquisition during third quarter.

Fjord Defence AS are in the defense market for vehicles, ground and maritime, and some miscellaneous, and you can see here the percentage which we are, and we expect the vehicle part to grow over the next years. Fjord Defence have signed several contracts with NATO countries, and expect to deliver of call orders in the coming months.

As I said, we concluded the acquisition. Subsidiary Fjord Defence AS is on track to reach the revenue target that we put forward when we did the acquisition, about 100 million NOK, and they have successfully qualified the 338 system with US Army Rangers during third quarter.

Other things we've done during the third quarter and going forward is that we completed the uplisting on Oslo Stock Exchange. We had a subscription of the share offering for 10 million to repair for the other.

We have entered into an agreement with Scanfiber Composites, and which is the second step in the strategy that we told to be a compounder inside defense industry. We have got another multi-client licensing agreement in the North Sea for 2.5 million, and year-to-date we have approximately 30 million in cash inflow from seismic assets.

That's important to have a good liquidity when we are building up and buying companies. The legacy is supporting us in this way.

As we all know, there is a strong tailwind across the defense segments, and I will show you where Fjord Defence is coming to the growth now, the same will be with Scanfiber AS in Denmark. The companies fit very well together.

The compounding strategy focused on defense, security, and related segments, we have a buy and build strategy that we showed during the second quarter presentation when we bought Fjord Defence AS. Scanfiber fits in very, very well in that strategy.

We have said that we are going to buy companies which has the revenue between 100 and 900 million NOK with a good profitability with EBITDA margins about 15%. We have a clear path for both these companies for organic growth going forward.

We want to have the strong management team, which also fit both companies. If we look at the acquisition of Scanfiber, we in the second quarter presentation showed our criterias for buying companies, and Scanfiber fits into all of these parts: operating in defense, right size, good profitability, clear organic growth, and a path forward to grow even more.

We also managed to buy this company on an EBIT multiple on 8.1. Many has wondered if there is possible to do this on these type of multiples, and we are also reaching that goal.

Scanfiber are producing ballistic protection. Mostly, it's spall liners, that is the ballistic protection inside the car.

That consists of 68% of their revenue, and they are on a lot of large vehicle programs moving forward in Europe. In 30% of their revenue is add-on armors, which is put on vehicles and other things that are not ballistic protected, and they have a wide range of other products which just compile of 2% of their revenue, and we see a good growth part also there.

They have a strong performance financially. In Denmark, the year-end is 31/9, these are audited numbers.

They had 159 million NOK in revenue and more than 50 million in EBITDA, and as you can also see on the last page, they have very small deviation between EBITDA and EBIT. I think EBIT came in 49 million the next year.

They have a strong order book, and they are very highly recommended to move forward, going forward, for further growth. Here you can see that they have a revenue growth of 50% with an EBITDA and EBIT margin of 30% in '24/'25, and it's looking good for further growth.

We know many big vehicle manufacturers in Europe have had Capital Markets Days, and they estimate the growth of numbers of vehicle to be doubled before 2030. If we look at their order book, they have 250 million already in orders.

They have pending orders about 1.3 billion Norwegian kroner, where is mostly based on their existing frame agreements with vehicle manufacturers, and they have a large pipeline of opportunities which is about 1.8 billion. The numbers we are telling you are not 100% numbers; they are reflected on the probability.

We have a strong company which we're looking forward to integrate into our organization. Then I leave to Øyvind Mølmann to take the financials.

Thank you very much, Jon Asbjørn. I am happy to present the financials for the third quarter and especially after having acquired or made an agreement to acquire Scanfiber, which is then doubling the number of companies within the core segment, defense segment in Fjord Defence, but more than doubles the top line of of this segment.

Also, we should remember that we have the legacy with us, which is giving us meaningful cash flow from both the multi-client library and the potential within the the shares we hold in Capsol. Looking closer at at Fjord Defence AS, it has performed steady growth as expected.

As Jon Asbjørn mentioned, up to 100 million approximately this year we expect, with margins at 15% or above for the EBITDA, and very similar margins for the EBIT, which you can see at the lower left-hand of the of the slide here. That means that this company, as is Scanfiber, is capital-light, minor depreciations, and minor maintenance investments in in this company as well.

At the lower hand side, we have illustrated the order backlog, and as you can see, this is a total of 77 million, which is quite stable since the second quarter. You will see from quarter to quarter this can vary in the short term, but the long-term prospects for the order book is that it will continue to grow over time.

We are that is based on the call-off of existing orders that Jon Asbjørn alluded to, and also new orders coming in. Sometimes it takes time with prolonged procurement processes in in the defense industry, and also rigid test procedures, but when they are finished, then you will see major shifts in the in the potential major shifts in the in the order book.

That is what we expect to see going forward. Then diving into the seasonality and details of Fjord Defence Group, you can see that on the left-hand side, we have illustrated the split between the quarters.

This is more or less erratic in and very, very seasonal, as you can see. In general, we think that you will have a concentration around the year-end in Q1 and Q4 each year, and lower revenues in the two remaining quarters.

Not concentrating too much on the split between the quarters, I think it's meaningful to look at the the year-on-year growth on the right-hand side from third quarter or nine months last year to nine months this year is a meaningful growth of 17%, which is in the vicinity of what we expect and can see for the full year this year as well. We are happy with the performance in the third quarter, and we expect this development to to continue through the rest of the year, but first of all or first and foremost for the coming for the years to come.

Okay. Looking at the impact of Fjord Defence in the on the group numbers, we have shown this before during the second quarter presentation, and as you can see from in 2024, the pro forma numbers, as if we bought and owned Fjord Defence for all of 2024, it would be comprising 2/3 of the turnover of the group.

If we look at the first nine months of this year, it's even more significant with 67 million in the in the defense segment and 10 million in the legacy segment, a total of 76 million top line year-to-date in the group. It should be remarked that the 9.7 is revenue from late sales in the seismic business, but in addition to the 9.7, we have more than 20 million in cash inflow that is not captured in the P&L, meaning that this year we expect a bit north of 30 million in cash inflow from the legacy business.

As a CFO, I'm very happy to see the cash coming in from that part of the of the business, and we expect that to continue for the period to come. Also in the rightmost column, I would like to point out that we are making money on a adjusted EBITDA level when adding back unrealized loss at Capsol shares of 13.4 million, and also adjusting for transaction costs, which will be a significant cost for us going forward.

That is how we grow. Happy to to see that on a cash basis there, we are making 6.3 million year-to-date at the group level.

This is not including now the Scanfiber numbers. We are not allowed to show them together, but you have seen the separate numbers previously, and that would more than double the top line of the segment.

It will triple the the top line of the segment here when we can add it for the first nine months of of the year. That is extremely satisfying.

Then short look at the balance sheet. The numbers here for 2024 are on a stand-alone basis for the previous for Fjord Defence Group ASA excluding Fjord Defence AS, but the balance sheet at end of third quarter, of course, is including Fjord Defence AS and showing a total balance sheet of 595 million NOK.

We have a satisfying cash position of 64 million at the end of the quarter. That is before the 10 million subsequent offering which came in October.

So 64 million in cash, and on the debt and equity side, you can see that we have a draw down in our loans of 25, of which 19.5 is a long-term part of that. 64 less 25 in debt means a net cash position of 39 million at the end of the quarter third quarter.

Excuse me. Strong cash position, and also a solid balance sheet with an equity ratio of 85%.

This is giving us a good good starting point for the acquisition of Scanfiber that we have conducted now. That's it from my side, and I will leave it back to you, Jon Asbjørn.

Thank you very much. If we are looking forward for the Fjord Defence Group ASA, we have started now to execute on our compounder strategy.

We are loyal to the criterias we set up and presented during the Q2 presentation, and we will continue to be that. Scanfiber Composites AS adding significant growth and revenue potential, and we expect further growth both for Fjord Defence AS and Scanfiber Composites AS.

As Øyvind just mentioned, we have a solid balance sheet and ready for both organic and acquired growth going forward. We are currently multitasking, we are doing evaluation of multiple other companies to acquire in the Nordic and Baltic region, and we hope we can start that immediately after everything is legalized and fixed with the Scanfiber acquisition.

Expect also continued positive cash from the legacy business going forward. At last, I will say one thing: the growth in the defense market as we see it, I'm said it on the second quarter presentation, I hope for peace in Ukraine and I hope that can move forward very quickly, but still we see the growth in Europe in all NATO countries will continue because we have realized that Europe have to be more independent from other parts and as we used to be.

I believe there will be strong growth in the defense market over the next 10 years, and hopefully the war in Ukraine will end. With that, thank you very much.

Then if there is any questions? Okay.

Thank you. Thank you very much.