ANNUAL REPORT



2024

THIS IS NORBIT

Highlights 2024

...........................................................................

4

Key figures

....................................................................................

5

Letter from the CEO

...................................................................

6

NORBIT in brief

............................................................................

8

Executive management team

................................................

10

The board of directors

..............................................................

12

Strategy and ambitions

............................................................

13

The NORBIT share

.....................................................................

14

Oceans

.........................................................................................

15

Connectivity

...............................................................................

18

PIR

................................................................................................

20

THE BOARD OF DIRECTORS’ REPORT

Review of 2024

...........................................................................

23

Sustainability statement

............................................................

31

General disclosures

......................................................................................

32

Environment

....................................................................................................

49

Social

.................................................................................................................

70

Governance

......................................................................................................

81

Report on the Norwegian code of practice

for corporate governance

........................................................

84

FINANCIAL STATEMENTS

Consolidated financial statements of

NORBIT Group

..........................................................................

94

Notes for the consolidated financial statements of

NORBIT Group

..........................................................................

98

Annual financial statements of

NORBIT ASA

............................................................................

126

Notes to the annual financial statements of

NORBIT ASA

............................................................................

129

Statement by the board of directors and CEO

...............

136

Auditor’s reports

.....................................................................

137

Definitions of alternative performance measures

.........

142

2

Contents

CONTENTS

THIS IS NORBIT

THE BOARD OF DIRECTORS’ REPORT

FINANCIAL STATEMENTS

CONTACT

2

This is NORBIT

THIS IS NORBIT

THIS IS NORBIT

Highlights 2024

..........................................

4

Key figures

...................................................

5

Letter from the CEO

..................................

6

NORBIT in brief

..........................................

8

Executive management team

...............

10

The board of directors

............................

12

Strategy and ambitions

..........................

13

The NORBIT share

...................................

14

Oceans

........................................................

15

Connectivity

..............................................

18

PIR

...............................................................

20

3

This is NORBIT

CONTENTS

THIS IS NORBIT

THE BOARD OF DIRECTORS’ REPORT

FINANCIAL STATEMENTS

CONTACT

3

This is NORBIT

NORBIT

Another record year

^

Delivered all-time high revenues of

NOK 1 751.4 million, a 15 per cent

increase from 2023.

^

The EBIT margin ended at 20 per

cent, up from 19 per cent in 2023, as

a result of increased revenues and

operational leverage.

Proposed increase in dividends

^

Due to the strong financial results

and development, the board has

proposed a dividend of NOK 3.00

per share, consisting of a NOK 2.00

per share ordinary dividend and NOK

1.00 per share extraordinary dividend.

Ambitions for 2027 set

^

Target to deliver more than NOK 2.75

billion in revenues in 2027, with an

EBIT margin of around 20 per cent

and a return of capital employed of

around 30 per cent.

CONNECTIVITY

Profitability maintained despite a

small revenue decline

^

Reported NOK 515.7 million in

revenues, a decline of 5 per cent

from 2023 on lower On-Board Units

sales. The EBIT margin was 26 per

cent, same as reported in 2023.

Developing the GNSS OBU and

receipt of contract

^

Announced the development of the

GNSS On-Board Unit for satellite-

based tolling. Awarded a NOK 160

million initial contract by Toll4Europe

with deliveries scheduled for 2025.

OCEANS

Continued strong and profitable

growth

^

Delivered NOK 743.9 million in

revenues, an increase of 24 per cent

from 2023. Growth was particularly

strong for subsea sonars, accelerated

further with the acquisition of

Innomar. The EBIT margin for the

year was 29 per cent.

Strategic acquisition of Innomar

^

Completed the acquisition of the

maritime technology company

Innomar for EUR 40.2 million, a

strong strategic fit to the Oceans

product portfolio.

PIR

Strong demand within contract

manufacturing

^

Reported NOK 543.1 million in

revenues in 2024, a growth of 32 per

cent from 2023, driven by industrial

clients within contract manufacturing.

The EBIT margin for the year was 10

per cent.

Exposure to the secular growth trend

in defence and security

^

Geopolitical unrest and security

concerns are driving an increase

in defence budgets, accelerating

growth in PIR. In 2024, defence and

security represented 20 per cent of

revenues in PIR, up from 6 per cent

in 2023.

HIGHLIGHTS 2024

4

Highlights

4

Highlights

KEY FIGURES – NORBIT

1)

Amounts in NOK million (except percentages,

EPS and DPS)

2023

2022

2021

2020

Revenues

1 518.9

1 167.5

787.8

618.8

Revenue growth

30%

48%

27%

EBITDA

391.8

235.3

142.6

93.5

EBITDA margin

26%

20%

18%

15%

EBIT

284.2

148.8

73.5

44.3

EBIT margin

19%

13%

9%

7%

Profit for the period

185.3

106.7

47.9

27.3

Diluted earnings per share (EPS)

3.10

1.82

0.83

0.48

Dividend declared per share (DPS)

2.55

0.70

0.30

0.30

Cash & cash equivalents

60.7

41.7

21.7

15.0

Equity ratio

53%

49%

51%

65%

Net interest-bearing borrowings

150.8

295.6

266.5

79.7

Net interest-bearing borrowings including leasing liabilities

205.5

331.4

284.3

102.9

NIBD/EBITDA ratio

2)

0.5x

1.4x

1.7x

1.0x

Cash flow from operations

345.7

85.7

47.7

92.1

Cash flow from investments

(149.0)

(91.9)

(217.6)

(136.7)

Cash flow from financing

(177.7)

26.2

176.6

37.8

R&D investments

60.2

60.5

51.2

63.2

R&D investments (% revenues)

4.0%

5.2%

6.5%

10.2%

Net Working Capital

414.2

405.3

291.6

196.8

Net Working Capital (% LTM revenues)

27%

35%

37%

32%

Average pre-tax return on capital employed

29%

17%

11%

9%

Average number of employees - full-time equivalents

498

418

311

246

1) For definitions of alternative performance measures, please see

page 142

.

2) 12-month rolling EBITDA including contribution from acquisitions. Definition on

page 117

.

0

300

600

900

1 200

1 500

1 800

2024

2023

2022

2021

2020

0

70

140

210

280

350

420

2024

2023

2022

2021

2020

Delivering on our growth strategy

In 2024, we continued to deliver on our strategy,

strengthening our market position through innova-

tion, expansion, and strategic acquisitions. Invest-

ments in R&D remained a priority, with significant

efforts dedicated to developing a new GNSS-

based On-Board Unit for road tolling. This led to a

contract with Toll4Europe, reinforcing our position

in the Intelligent Traffic Systems market.

The acquisition of Innomar, a leading provider of

sub-bottom profilers, further expands our product

offering in the Oceans segment and is an exam-

ple of our strategy for value-accretive acquisi-

tions. The combination of Innomar’s vast domain

knowledge and strong brand with NORBIT’s global

reach and industrial platform, creates new oppor-

tunities for growth and innovation.

It is satisfying to see NORBIT's solid financial foun-

dation, enabling us to swiftly act on the investment

opportunity Innomar presented. We are grateful

for the trust our banks and investors have shown

in us, with the private placement being signifi-

cantly oversubscribed, demonstrating confidence

in our strategy and future growth.

– Our 2027 ambition plan, presented

in February2024, remains firmly in

place. In 2024 we took the first step

towards this ambition.

LETTER FROM THE CEO:

A YEAR OF PROGRESS

CONTENTS

THIS IS NORBIT

THE BOARD OF DIRECTORS’ REPORT

FINANCIAL STATEMENTS

CONTACT

6

Letter from the CEO

During the year, we also secured new contracts

across our business units, including strong and

increasing demand for our GuardPoint surveillance

sonar solutions.

To support further growth, we have welcomed

several new, great colleagues. It is encouraging

to see that the interest in joining NORBIT remains

strong, confirming that our culture, ambitions, and

opportunities attract skilled professionals.

These steps, combined with a focus on opera-

tional efficiency and capacity expansion, position

NORBIT for further growth.

Taking the next steps

Our 2027 ambition plan, presented in Febru-

ary 2024, remains firmly in place. In 2024 we

took the first step towards this ambition. Our

approach to growth has been to build the com-

pany brick by brick.

In 2025, we aim to take another good step

towards our 2027 ambition. More than celebrat-

ing achievements, we are driven by setting new

goals and moving forward. We strongly believe in

the power of a goal that is broken down in a way

that makes it matter for the entire team and each

team member. This year, we aim to reach a top

line between NOK 2 200 and 2 300 million, with

an EBIT margin that surpasses the 20 per cent we

achieved in 2024.

30 years of exploration

2025 marks a new milestone for us in NORBIT - 30

years of exploration, innovation, and tailoring of

technology. Looking back, it has been a rewarding

expedition, filled with both challenges that have

shaped us and opportunities that have propelled

us forward.

Anniversaries are not just about reflection; they

are also about looking ahead. The world is mov-

ing fast, and so shall we. The trust placed in us by

customers continues to grow, bringing new oppor-

tunities and responsibilities. Therefore, we cannot

spend too much time dwelling on the past. Each

day presents a new opportunity to explore more,

to push boundaries, and to deliver solutions that

matter.

An expanding journey

The journey so far has been defined by curios-

ity, determination, commercial and entrepreneur-

ial spirit. Our purpose - Explore More - is not just

a slogan, but a mindset that has been guiding us

through three decades of growth. It has led us to

new markets, expanded customer relationships

into strategic partnerships, and driven technologi-

cal advancements that make a difference in these

relations.

Standing at the threshold of the next phase, NOR-

BIT is well-positioned. A key driver in this journey

is our strategic priority: ONE NORBIT - a commit-

ment to leveraging synergies across our busi-

nesses, strengthening collaboration, and ensuring

that we act as one cohesive team with a shared

vision and a joint target.

At the heart of this is our first core value: We

deliver! This is more than just an individual com-

mitment, this value carries power in the collective

- the best results come when we pull in the same

direction, aligning efforts across the company. To

fully realise the potential, leadership has a respon-

sibility to set clear goals and provide relevant

context, ensuring that every decision and action

contributes to our shared vision: NORBIT - To be

Recognised as World Class – Enabling people to

Explore More.

At the foundation of our success are our core val-

ues: We deliver, Safe under pressure, and Refine-

ment of talents. These principles define how we

work, building teams that can solve challenges,

and create value for our customers. To remain rel-

evant and competitive on this journey, NORBIT is

doubling down on the following:

Leadership

Talent and culture have always been at the heart

of our priorities. Ensuring that we continue to

attract the right people, offer them the right seat,

and create an environment where they can grow -

both as individuals and as a team - is essential for

the journey ahead.

Commercial and explorative mindset

Technology is a means to solve challenges.

A deep respect for the daily operations in the

domains we serve, ensures that our solutions

remain relevant. This requires more than techni-

cal expertise, it demands a strong customer cen-

tric mindset where we seek to understand not just

what our customers need today, but where their

businesses are headed. Our ability to use tech-

nology to solve challenges for customers is the

foundation for long-term strategic partnerships

throughout the value chain.

Technology is part of the solution

The world faces major challenges in all areas

and technology is a part of the solution. NORBIT

is committed to taking its share of responsibil-

ity. By developing relevant technology and effi-

cient solutions, we contribute to solving real-world

problems. The impact we create is not just about

business growth, it is about making a meaningful

difference.

One of the challenges the world faces today is

geopolitical uncertainty. This presents risks for

all businesses, including NORBIT. At the same

time, we lean on our core value Safe Under Pres-

sure, focusing on what we can influence and look-

ing for opportunities where others see limits. For

example, we see increasing demand for under-

water surveillance technology and a broader shift

towards technology made in Europe and Norway.

Over time, we have strengthened our capacity,

ensuring that we are well-positioned to respond

to these developments. At NORBIT, we continu-

ously assess risks, but our focus remains on what

we can impact. Our diversified business struc-

ture – both across segments and within each

segment – enhances our resilience. This robust-

ness has served us well through past crisis and

continues to be a key strength as we navigate an

evolving global landscape.

Looking forward with determination

With 30 years behind us, NORBIT stands stronger

than ever. The best way to honour this milestone

is by continuing forward with the same pioneering

spirit that brought us here. This will be instrumen-

tal in ensuring that we capitalise on our strengths

and continue to grow together. The opportuni-

ties are many, and the responsibility is great. This

is what drives us - to wake up every morning and

take on the tasks on our table.

It is a great privilege to be part of a company with

so many dedicated and talented people. The

expertise, passion, and effort each of them brings

to NORBIT is what makes everything we achieve

possible.

I would like to thank every NORBIT Explorer for

the commitment, drive, and willingness to do what

it takes. And to our customers, partners and share-

holders - thank you for being part of this journey.

Let’s continue to Explore More!

CEO of NORBIT ASA

CONTENTS

THIS IS NORBIT

THE BOARD OF DIRECTORS’ REPORT

FINANCIAL STATEMENTS

CONTACT

7

Letter from the CEO

NORBIT IN BRIEF

A rich history of innovation and growth

Since our founding in 1995, we have been at the

forefront of technology development, creating

innovative, tailored solutions that have enabled

our customers to solve challenges in a wide range

of industries – from subsea to space.

At the beginning of our journey, activity was pri-

marily related to the development and sales of

tailored client and dual-branded products. In

2009, we made a strategic shift by leveraging our

expertise in wireless communication and under-

water acoustic technology to develop our own

branded solutions. This marked the foundation

of what today is Connectivity and Oceans, with a

clear ambition to bring proprietary technology to a

global market under our own brand.

Offices

Local representation

Associated companies

~

550

EMPLOYEES

~

40

NATIONALITIES

~

80%

EXPORT SHARE

~

60

EXPORT COUNTRIES

8

This is NORBIT

8

This is NORBIT

This transformation was complemented by

expanding into contract manufacturing in 2009

and 2012, respectively, with the acquisitions of our

factories in Røros and Selbu, Norway. These steps

have been instrumental in securing our ability to

scale production while maintaining full control

over quality and innovation.

By capitalising on our knowledge base, attracting

domain expertise and expanding internationally,

we have over the last ten years gradually posi-

tioned NORBIT as a leading global technology

company with a diversified portfolio of proprietary

products. Today, more than 80 per cent of our rev-

enues come from exports to around 60 countries,

while the share of revenues from sale of tech-

nology based on our own intellectual property is

close to 75 per cent.

Vision and values

Our core values:

^

We deliver!

^

Safe under pressure

^

Refinement of talents

These values act as important guidelines in our

daily work:

^

We train our colleagues to be able to observe,

reflect and act independently, ensuring that

we are on top of the circumstances rather than

ending up as victims of them.

^

We are fully committed to deliver value to our

partners.

^

We walk the extra mile to exceed expectations.

^

We are ambitious, and we see opportunities

rather than challenges.

^

We equip our colleagues with the skills and

confidence needed to face the unpredictability

that lies ahead of us.

^

Our employees shall be allowed to refine their

strengths, as well as develop and explore other

aspects of themselves.

Technology is part of the solution in a more

sustainable future

At NORBIT, we believe technology is key to solving

sustainability challenges. In 2024, we take an

important step forward by reporting for the first

time in accordance with the European Sustainability

Reporting Standards (ESRS) under the Corporate

Sustainability Reporting Directive (CSRD). This

marks a shift towards enhanced transparency,

structured reporting, and measurable progress.

Our sustainability strategy is built around a clear

goal hierarchy, ensuring that our overarching

ambitions are translated into guiding policies,

concrete actions, and measurable targets. We

aim to contribute to sustainable development by

creating technology solutions that support our

customers and society in addressing sustainability

challenges, while maintaining responsible

business practices throughout our value chain..

Global shifts towards resilience,

digitalisation, and sustainability create

opportunities across all NORBIT’s segments.

We are committed to accelerating the green

transition by continuously developing

technology solutions that contribute to a

more sustainable future.

Sustainability is integrated into our

entire product lifecycle—from early-stage

design and development to production,

transportation, and recycling.

Our people are our most valuable asset.

We are committed to fostering a safe,

engaging, and inclusive work environment

that enables employees to grow and

develop.

We will ensure good governance and legal

compliance in all countries and markets.

We aim for transparency, traceability, and

integrity across our value chain.

NORBIT’S SUSTAINABILITY AMBITIONS ARE REFLECTED IN FOUR KEY OBJECTIVES:

9

This is NORBIT

9

This is NORBIT

EXECUTIVE MANAGEMENT TEAM

Per Jørgen Weisethaunet

Chief executive officer (CEO)

Per Jørgen Weisethaunet was one of the company’s

first employees in 1995. He has been the group’s

CEO since 2001 and co-owner of NORBIT since 2008.

He has several years of experience across a vari-

ety of fields including R&D, operations management,

commercial and strategic business development, and

has held several different positions throughout the

organisation. Weisethaunet has been chair and direc-

tor of several executive boards. He holds a Master of

Science degree in RF & Microwave electronics from

the Norwegian University of Technology (NTNU), a

Bachelor of Science in electronics from Trondheim

University of Engineering (TIH), business economics

from Trondheim Economic University centre of com-

petence (TØHK) and supply chain management from

BI Norwegian Business School.

At 10 April 2025, Weisethaunet and related parties

held 7 100 533 shares and 48 732 RSUs in NORBIT.

Per Kristian Reppe

Chief financial officer (CFO)

Per Kristian Reppe has been the group’s CFO since

July 2020. Before joining NORBIT, Reppe held vari-

ous positions at Aker ASA, including investment man-

ager and head of investor relations, and as CFO at

one of Aker ASA’s portfolio companies. Prior to that,

he worked as a management consultant at Arkwright

and as an equity analyst at Pareto Securities. Reppe

holds a Master of Science degree from the Norwe-

gian School of Economics (NHH) with a major in finan-

cial economics.

At 10 April 2025, Reppe and related parties held

85 430 shares and 36 956 RSUs in NORBIT

Julie Dahl Benum

Director of Strategy and ESG

Julie

Dahl Benum joined NORBIT in December 2022

as director of strategy and ESG. Prior to joining NOR-

BIT, Benum held the position of senior manager and

head of strategy in Karabin Impello AS. She also has

experience as project manager at NTNU Technology

Transfer AS and as management consultant at BCG.

Benum holds an MSc degree in industrial econom-

ics and technology management from the Norwegian

University of Science and Technology (NTNU).

At 10 April 2025, Benum and related parties held

5 755 shares and 18 422 RSUs in NORBIT.

Arild Søraunet

Chief technical officer (CTO)

CONTENTS

THIS IS NORBIT

THE BOARD OF DIRECTORS’ REPORT

FINANCIAL STATEMENTS

CONTACT

10

Executive management

Astrid Stevik

Chief operating officer (COO)

Astrid Stevik joined NORBIT in 2023 as industrial-

isation manager in Oceans, later took on the COO

responsibility in Oceans, and from November 2024

moved into the role of COO for the group. In her cur-

rent position, Stevik is overall responsible for opera-

tional activities across the three business segments,

including NORBIT’S manufacturing sites. Stevik holds

an MSc in chemical engineering from the Norwegian

University of Science and Technology (NTNU) and

has 25 years of experience in industrialisation, prod-

uct development, and supply-chain management

across various industries.

At 10 April 2025, Stevik and related parties held 2 108

shares and 0 RSUs in NORBIT.

Peter Koldgaard Eriksen

Business unit director Oceans

Peter Koldgaard Eriksen has been the group’s

business unit director of Oceans since 2016. Kold-

gaard Eriksen has 12 years of experience in NOR-

BIT, seven years in RESON Inc and Goleta California

as CEO, EVP, group CTO, and in business develop-

ment. He also has 11 years of experience in RESON

AS Slangerup Denmark as an R&D engineer and R&D

manager. During his time at RESON AS, he worked

as CTO and production manager and was part of the

global management team. Koldgaard Eriksen holds a

Master of Science in active vibration control from Aal-

borg University Center, as well as various educations

from MBA Kellogg Chicago US, HKUST Hong Kong

and Vallendar Germany.

Asbjørn Dahl

Commercial director for PIR and Connectivity

CONTENTS

THIS IS NORBIT

THE BOARD OF DIRECTORS’ REPORT

FINANCIAL STATEMENTS

CONTACT

11

Executive management

BOARD OF DIRECTORS

1) Defined as shareholders holding

10 per cent or more of the shares

Finn Haugan (1953)

Chair

Finn Haugan was the CEO of the

listed company Sparebank 1 SMN

from 1991 to 2019. Haugan has

experience from several board

positions, including chair of

Sparebank 1 Gruppen, the indus-

try organisation Finance Norway,

and Norwegian Bank’s Guaran-

tee Fund. He currently serves as

chair of SpareBank 1 Sør-Norge

ASA, Sinkaberg AS and director

of Reitan Eiendom AS. Chair of

NORBIT ASA since May 2019 and

re-elected on 6 May 2024 for a

period of two years. Chair of the

remuneration committee.

Haugan attended 17 board meet-

ings in 2024 (100 per cent attend-

ance rate).

Number of shares* at 10 April

2025: 93 998

Deputy chair

Landsnes attended 16 board meet-

ings in 2024 (94 per cent attend-

ance rate).

Number of shares* at 10 April

2025: 74 073

Christina Hallin (1960)

Director

Christina Hallin is currently work-

ing as non-executive director,

mentor, and advisor within the

industrial sector, mainly in Swe-

den. Hallin was most recently

CEO of SEM (Swedish Electro-

magnets AB). Prior to that, Hal-

lin worked more than 35 years

within the Volvo group with exec-

utive positions in various dis-

ciplines, both in Sweden and

internationally. Hallin is a director

in Bulten AB and SEM AB. Hallin

holds a Master of Science degree

in electrical engineering from

Chalmers University of Technol-

ogy. Director since 4 May 2022

and re-elected on 6 May 2024 for

a period of two years. Member of

the remuneration committee.

Hallin attended 17 board meet-

ings in 2024 (100 per cent attend-

ance rate).

Number of shares* at 10 April

2025: 0

Trond Tuvstein (1972)

Director

Håkon Kavli (1985)

Director

Håkon Kavli is the chief invest-

ment officer of Reitan Kapital AS.

Kavli is an experienced portfolio

manager within asset allocation,

equities and global fixed income,

having previously served as a

portfolio manager with Store-

brand Asset Management. Kavli is

a Chartered Financial Analyst and

holds a PhD in Economics from

the University of Pretoria. Direc-

tor since 6 May 2024 and elected

for a period of two years. Member

of the remuneration committee.

Kavli attended 14 board meetings

in 2024 (100 per cent attendance

rate from appointment date).

Reitan Kapital AS holds 9.55

per cent of the shares in NOR-

BIT ASA.

Number of shares* at 10 April

2025: 0

*

Number of shares includes shares

held by related parties.

CONTENTS

THIS IS NORBIT

THE BOARD OF DIRECTORS’ REPORT

FINANCIAL STATEMENTS

CONTACT

From the very beginning, we have pursued a strat-

egy of relentless focus on market driven innovation

in carefully selected applications. We invest in the

development of new products and solutions when

we understand the needs and expectations of our

customers in their domain. In partnership with our

customers, we listen, explore, and develop solutions

that allow us to grow together with our partners. Our

focus on research and development ensures that

we stay at the forefront of technological innovation.

At NORBIT, we manufacture what we sell. In-house

manufacturing capabilities enable scalability and

control of the value chain and operations, ele-

ments that are fundamental to sustaining further

growth and remaining competitive, especially in an

unstable and complex macro environment.

Our mindset is opportunity driven, by applying an

entrepreneurial and commercial sprit. When identi-

fying the right opportunity, we act dynamically and

apply speed and agility as a competitive advantage.

NORBIT’s main asset is our employees. Attracting

and refining top talent enables us to create value

for our clients and deliver when it matters. We give

each employee considerable decision-making

scope regarding their work. This implies a signifi-

cant degree of freedom, but also places a substan-

tial responsibility on our employees.

Throughout our history, a key factor for success

has been to diversify our business model, thereby

reducing dependency on any one market or prod-

uct, while also taking advantage of opportunities

for growth and expansion. Tailoring the growth

strategy for each business segment has been an

intentional choice.

Refining the strategic priorities

Going forward, we aim to strengthen our position

as a leading global provider of tailored technol-

ogy for specific applications, delivering value to

our customers by solving challenges through inno-

vation.

Alongside our foundation for success, the following

priorities are central to our strategy going forward:

BUILDING ON OUR LEGACY OF INNOVATION TO DRIVE FUTURE GROWTH

STRATEGY AND AMBITIONS

^

Broadening market driven product offering with

tailored technology.

^

Going from “niche to notable” by cultivating our

ability to take on larger tasks.

^

Diversifying our customer base, reducing

dependencies on specific sectors,

and leveraging cross-segment growth

opportunities.

^

Pursuing operational excellence and scalability,

developing leadership to unlock the potential

of all colleagues.

^

Prioritising the overall best opportunities,

focusing on NORBIT as a whole.

^

Exploring value-accretive acquisitions through

defined criteria to accelerate growth.

Long-term financial ambitions

NORBIT’s ambition in 2027 is to deliver organic

revenues in excess of NOK 2.75 billion and an

EBIT margin of around 20 per cent. The revenue

trajectory implies a growth rate of 16 per cent per

year from 2023, with all segments expected to

contribute positively. The following targets have

been set for the three business segments for

2027:

Revenues in excess of NOK 1.1 billion and

an EBIT margin between 25 and 30 per cent.

Revenues in excess of NOK 1.0 billion

and an EBIT margin between 25 and 30 per cent.

Revenues in excess of NOK 750 million and

an EBIT margin between 8 and 10 per cent.

Combined with active balance sheet management,

the targeted pre-tax return on capital employed is

around 30 per cent.

2027

2024

2023

2022

2021

2020

REVENUES

NOK million

2027

2024

2023

2022

2021

2020

EBIT MARGIN

Per cent

2027

2024

2023

2022

2021

2020

PRE-TAX RETURN ON CAPITAL EMPLOYED

Per cent

Shares and share capital

At 31 December 2024, the total number of shares

in NORBIT ASA amounted to 63 750 027 and the

number of outstanding shares was 63 629 265.

At the same date, NORBIT ASA held 120 762 own

shares.

During 2024, the share traded between NOK 53.40

and NOK 97.00 per share, with a closing price of

NOK 96.60 at year-end 2024. At 31 December 2024,

the company had approximately 4 000 sharehold-

ers, of which the 20 largest shareholders held 68.7

per cent of the total outstanding shares.

Dividend policy

NORBIT ASA’s objective is to provide sharehold-

ers with a long-term competitive return through

an increase in the share price and payment of div-

idends.

The dividend policy is to pay out annual ordinary

dividends between 30 and 50 per cent of the

company’s net profit after tax, with the intention

to pay out potential excess capital as extraordi-

nary dividends. When proposing the total divi-

dend payment, the board of directors will take into

account the company’s financial position, invest-

ment plans, any restrictions by law, as well as the

needed financial flexibility to provide for sustain-

able growth. To that end, the company has set

long-term financial targets relating to its capital

structure to have a NIBD/EBITDA ratio between

1.0 –2.5x.

IR contact:

Per Kristian Reppe

Group CFO

[email protected]

+47 900 33 203

Annual general meeting:

6 May 2025

Results first quarter 2025:

14 May 2025

Half year results 2025:

14 August 2025

Results third quarter 2025:

13 November 2025

Results fourth quarter 2025:

12 February 2026

THE NORBIT SHARE

SHARE PRICE DEVELOPMENT 2024

NOK

■

NORBIT

■

OSEBX rebased

01.01

01.02

01.03

01.04

01.05

01.06

01.07

01.08

01.09

01.10

01.11

01.12

31.12

Click or scan the QR-code for access to

NORBITs latest share price development.

DIVIDEND PER SHARE – DECLARED

BUSINESS SEGMENTS:

OCEANS

2024

2023

2022

2021

2020

REVENUES

■

Sonars

■

Security

■

Sub-bottom profilers

Other

2024

2023

2022

2021

2020

EBITDA

■

EBITDA (NOK million)

EBITDA margin (per cent)

2024

2023

2022

2021

2020

EBIT

■

EBIT (NOK million)

EBIT margin (per cent)

GEOGRAPHICAL REVENUE DISTRIBUTION

EMEA: 54%

Americas: 24%

■

APAC: 21%

Innomar serves a diversified and global cus-

tomer base, having sold systems to more than

80 countries, demonstrating extensive reach

and responsiveness to market demand. Innom-

ar’s main products are parametric sub-bottom

profilers, which are advanced acoustic instru-

ments designed to work in all water depths. These

devices use specialised sound pulses to create

high-resolution images of the seafloor and the

subsurface layers beneath it.

The Innomar transaction has a strong strategic

and financial rationale along NORBIT’s criteria to

accelerate growth through strategic acquisitions:

^

Tailored technology to carefully selected

applications

^

A complementary product portfolio, providing

diversification of revenues and cash flow

^

Positive revenue synergies expected

by combining market and R&D efforts,

strengthening the offering and position within

underwater acoustics

^

A customer and commercially focused

organisation with deep domain specific

knowledge

^

A cultural fit

^

Creating shareholder value through strong

accretion to the results and cash flow

The total purchase price paid for Innomar was EUR

40.2 million, settled EUR 34.9 million in cash and

EUR 4.8 million in a share issue towards the found-

ing management of Innomar.

“Joining forces with NORBIT is a great

opportunity for Innomar. This partnership

aligns well with our long-standing commitment to

delivering high-quality technology in the Oceans

domain. We believe that NORBIT's global reach

and resources will make us even better at serving

our customers and exploring new opportunities in

the maritime industry.”

Sabine Muller, CEO Innomar

ACQUISITION:

INNOMAR – NOW A NORBIT COMPANY

CONTENTS

THIS IS NORBIT

THE BOARD OF DIRECTORS’ REPORT

FINANCIAL STATEMENTS

CONTACT

16

Business segments

HIGH-RESOLUTION SONARS PROVIDED

TO SAILDRONE'S USVS

PROTECTING THE SEINE UNDER

THE 2024 OLYMPICS

The sonar system can be used to perform

underwater surveillance of sensitive instal-

lations and critical infrastructure, such as

energy installations, ports, superyachts,

cruise ships and naval vessels.

During the 2024 Olympics event in Paris,

NORBIT collaborated with the French law

enforcement and security services to pro-

tect the river Seine by deploying six Guard-

Point underwater sonars along the river.

CONTENTS

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FINANCIAL STATEMENTS

CONTACT

17

Business segments

BUSINESS SEGMENTS:

CONNECTIVITY

2024

2023

2022

2021

2020

REVENUES

■

On-board units

■

Enforcement modules

■

Satelite-based tolling

Subscription and e-toll

Other

2024

2023

2022

2021

2020

EBITDA

■

EBITDA (NOK million)

EBITDA margin (per cent)

2024

2023

2022

2021

2020

EBIT

■

EBIT (NOK million)

EBIT margin (per cent)

GEOGRAPHICAL REVENUE DISTRIBUTION

EMEA: 100%

■

Americas: 0%

■

APAC: 0%

INTRODUCING THE NORBIT

GNSS ON-BOARD UNIT

GREATER ROAD SAFETY WITH NORBIT'S ENFORCEMENT

MODULES FOR TACHOGRAPHS

In 2024, and in line with the strategy to

broaden the product offering and cus-

tomer base, NORBIT announced its plan to

develop a new and innovative GNSS-based

On-Board Unit, thus taking a significant

larger scope of the total delivery to the end

customer. The GNSS On-Board Units uses

satellite-based positioning data for accu-

rate measurement of distance travelled,

accommodating distance-based charging

for heavy duty vehicles, a technology which

has been adopted by several European

countries for collecting tolling fees. The

GNSS On-Board Unit contributes to efficient

toll collection with a single On-Board Unit

across borders in the European Union.

As part of the development, NORBIT

entered into a partnership with Toll4Europe,

one of Europe’s leading European Elec-

tronic Toll Service (‘EETS’) operators. EETS

simplifies pan-European transportation

routes where one subscription and a single

On-Board Unit through most of Europe per-

mits the compliant billing of the respective

national road tolls by one service provider.

Compared to gantry-based toll stations with

cash transactions, GNSS On-Board Units

and EETS improves traffic flow and reduces

congestion.

The first initial contract with Toll4Europe

totals approximately NOK 160 million of

deliveries scheduled for 2025.

NORBIT’s enforcement modules for digital

tachograph transmit data wirelessly from the

moving truck to control officers. Using this

data, the control officer can selectively stop

vehicles and ensure that the driver complies

with driving times and rest periods, and

thus ensure greater road safety, both for the

driver and other road users.

In Europe today, around 80 per cent of all

trucks above 3.5 tons delivered from 2019

use NORBIT technology.

CONTENTS

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THE BOARD OF DIRECTORS’ REPORT

FINANCIAL STATEMENTS

CONTACT

19

Business segments

BUSINESS SEGMENTS:

PRODUCT INNOVATION & REALIZATION (PIR)

2024

2023

2022

2021

2020

REVENUES

■

Contract manufacturing

■

R&D

Customer reimbursements

■

Other

2024

2023

2022

2021

2020

EBITDA

■

EBITDA (NOK million)

EBITDA margin (per cent)

2024

2023

2022

2021

2020

■

EBIT (NOK million)

EBIT margin (per cent)

(7%)

GEOGRAPHICAL REVENUE DISTRIBUTION

EMEA: 95%

■

Americas: 0%

■

APAC: 5%

With expertise in high-performance RF sys-

tems, NORBIT has developed advanced

intelligent antenna solutions for maritime

military applications. These systems enable

the seamless integration of multiple trans-

ceivers sharing antennas while ensuring

effective intermodulation suppression. In

collaboration with Comrod, which brings

deep domain knowledge and specialised

competence in military antenna applications,

this technology has been made available to

leading defense customers.

A decade later, NORBIT developed its first

complete NAV Analyzer. The NAV Analyzer

is used to measure critical parameters of

the Instrument Landing System and VOR

ground system, providing high accuracy and

measurement speed for ground and flight

inspection. The NAV Analyser is a portable,

battery-operated and weatherproof unit to

be used both indoors and outdoors. Today,

NORBIT provides the complete product to

its client Indra Navia together with integrity

monitoring solutions, in accordance with the

latest aviation requirements.

ENHANCING NAVAL COMMUNICATIONS WITH

ADVANCED ANTENNA TECHNOLOGY

CONTRIBUTING TO AVIATION SAFETY

CONTENTS

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FINANCIAL STATEMENTS

CONTACT

21

Business segments

THE BOARD OF DIRECTORS’ REPORT

THE BOARD OF DIRECTORS’

REPORT

Review of 2024

........................................

23

Sustainability statement

........................

31

General disclosures

..........................................

32

Environment

........................................................

49

Social

......................................................................

70

Governance

..........................................................

81

Report on the Norwegian code of

practice for corporate governance

....

84

CONTENTS

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FINANCIAL STATEMENTS

CONTACT

22

Board of directors’ report

Overview of the business

The board of directors’ report for the NORBIT

group (“NORBIT” or “the group”) comprises NOR-

BIT ASA (“the parent company”) and all subsid-

iaries. The parent company, NORBIT ASA, is a

Norwegian public limited liability company.

Business and location

technology to selected applications. The group

is headquartered in Trondheim, Norway, with

manufacturing in Europe and North America.

NORBIT has a global sales and distribution plat-

form with subsidiaries in Denmark, Czech Repub-

lic, Poland, Germany, Austria, Hungary, Italy,

Singapore, China, Sweden, Croatia, Slovakia,

Brazil, United Kingdom, Chile, United States and

Canada.

NORBIT is organised in three business units:

Oceans, Connectivity and Product Innovation and

Realization (PIR). Oceans delivers tailored technol-

ogy solutions to the global maritime markets and

the Connectivity segment provides tailored wire-

less solutions for identification, monitoring and

tracking. PIR offers R&D services and products

and contract manufacturing.

Through its three business segments, NORBIT has

a diversified business model where the segments

are exposed to different market drivers, customer

bases and risks. The group’s diversified offering

across its segments, makes NORBIT well posi-

tioned to meet various market scenarios.

A further description of each business unit is pre-

sented under the section “Business segments”.

Summary of the year

NORBIT continued its journey of profitable growth

in 2024, delivering record results in line with the

guidance provided for the year, both on growth

and operating margin.

In total, revenues grew by 15 per cent to reach

NOK 1 751.4 million, supported by growth in the

Oceans and PIR segments. The operating profit

(EBIT) came in at NOK 341.7 million, up from NOK

284.2 million in 2023. This represented a margin

of 20 per cent for the full year.

During the year, NORBIT continued to strengthen

its operations, market position and technology

platform, preparing for further growth in 2025 and

beyond. In 2024, 70 new colleagues were wel-

comed to the family, new products were launched

to the market and continued investments were

made in R&D and machinery equipment.

Oceans continued to see strong demand for its

sonar solutions, reporting growth of 16 per cent in

the market vertical, while the security domain con-

tributed with strong growth of 67 per cent, albeit

from a low base in 2023. In July, NORBIT acquired

the technology company Innomar. Headquartered

in Rostock, Germany, Innomar is the global market

leader in the design, manufacturing and distribu-

tion of parametric sub-bottom profilers. Parametric

sub-bottom profilers are used to create high-res-

olution images of the seafloor and the subsurface

layers beneath it. The complementary product

portfolio provides Oceans with additional diversi-

fication and growth opportunities. The total con-

sideration was EUR 40.2 million paid through a

combination of EUR 35.4 million in cash and EUR

4.8 million in issuance of consideration shares.

Connectivity had a revenue decline of 5 per cent

in 2024, but laid a strong foundation for growth

in the years to come with the announcement of

its development of a new product, the GNSS

On-Board Unit and the award of a NOK 160 million

initial contract by the EETS provider Toll4Europe.

Deliveries are scheduled for 2025 for the first

order.

The PIR segment reported a strong 32 per cent

growth in 2024, driven by higher sales of contract

manufacturing, particularly towards the defence

and security industries which are in a secular

growth trend due to increased geopolitical unrest.

The share of revenues to defence and security

sectors increased to 20 per cent in 2024, versus

only 6 per cent in 2023.

In 2024 and subsequent to the announcement of

the Innomar transaction, NORBIT carried out its

first equity private placement directed towards

external investors since the initial public offering

in 2019. The share issue attracted strong interest

from several high-quality investors and was many

times oversubscribed.

NORBIT ended the year with a strong financial plat-

form and a robust balance sheet due to the strong

results achieved. Considering the performance of

the year, the board has proposed an increase in

the dividend to NOK 3.00 per share, consisting of a

NOK 2.00 per share ordinary dividend and a NOK

1.00 per share extraordinary dividend.

In February 2024, NORBIT announced an updated

strategic roadmap and new long-term financial tar-

gets for 2027. The group’s ambition is to deliver

organic revenues in excess of NOK 2.75 billion, an

EBIT margin of around 20 per cent and a return on

capital employed of around 30 per cent. To accel-

erate growth beyond the organic target, NORBIT

will continue to explore value-accretive acquisi-

tions through its defined criteria. For more infor-

mation about these targets and strategic priorities,

please refer to

page 13

of the annual report.

FINANCIAL REVIEW

All amounts in brackets are comparative figures

for 2023 unless otherwise specifically stated.

Accounting policies

The following financial review is based on the con-

solidated financial statements of NORBIT ASA and

its subsidiaries. The statements have been pre-

pared in accordance with the International Finan-

cial Reporting Standards (IFRS).

REVIEW OF 2024

NEW STEPS TOWARDS THE 2027 TARGETS

CONTENTS

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FINANCIAL STATEMENTS

CONTACT

23

Board of directors’ report

In the view of the board, the income statement, the

statements of comprehensive income, changes in

equity and cash flow, the balance sheet and the

accompanying notes provide satisfactory infor-

mation about the operations, financial results and

position of the group and the parent company at

31 December 2024.

Pursuant to section 4-5 of the Norwegian Account-

ing Act, it is confirmed that the accounts have

been prepared based on the assumption that

NORBIT is a going concern, and the board con-

firms that this assumption continues to apply.

Consolidated statement of income

Total operating revenues for 2024 amounted

to NOK 1 751.4 million (NOK 1 518.9 million), cor-

responding to an increase of 15 per cent from

the year before. Adjusted for the acquisition of

Innomar, revenue growth was 12 per cent.

The Oceans segment achieved an increase in rev-

enues of 24 per cent, and 16 per cent when adjust-

ing for the Innomar acquisition. Revenue growth

was primarily explained by higher sonar sales

across multiple geographies.

The Connectivity segment saw revenues decline

5 per cent in 2024 on lower sales of On-Board

Units, while the PIR segment reported the strong-

est growth of the three business segments, deliv-

ering a 32 per cent revenue increase from 2023

as a result of strong demand within contract man-

ufacturing.

Raw material expenses and change in inventory

amounted to NOK 704.6 million (NOK 614.7 mil-

lion). The increase from the prior year reflects the

higher activity level. Gross margin was 60 per cent

in 2024 (60 per cent).

Employee benefit expenses amounted to NOK

416.3 million (NOK 360.3 million). The increase

was primarily explained by a general strengthen-

ing of the organisation to support further growth

and strategic initiatives, wage inflation, as well as

acquisitions in 2024 and throughout 2023 which

gave full-year effect this year.

Other operating expenses were NOK 156.4 million

(NOK 152.2 million). Adjusting for transaction costs

in connection with the Innomar acquisition, other

operating expenses were down 2 per cent in 2024

compared to 2023.

Operating profit before depreciation and amortisa-

tion (EBITDA) amounted to NOK 474.0 million (NOK

391.8 million), corresponding to an EBITDA margin

of 27 per cent (26 per cent).

Depreciation and amortisation were NOK 128.9

million (NOK 107.7 million), with the increase

explained by amortisation of completed R&D

investments, depreciation of investments made

during 2024, as well amortisation of excess val-

ues of intangible assets in relation to acquisi-

tions.

Operating profit for 2024 was NOK 341.7 million

(NOK 284.2 million), corresponding to a margin of

20 per cent (19 per cent).

Net financial items amounted to negative NOK

23.4 million for the full year (negative NOK 38.1

million). Net interest expenses rose to NOK 36.4

million (NOK 28.6 million), while NOK 13.3 million

was recorded in foreign exchange gains and

other financial income (loss of NOK 9.5 million).

NORBIT recorded a profit before taxes of NOK 318.3

million (NOK 246.0 million). Tax expenses amounted

to NOK 75.0 million for 2024 (NOK 60.8 million).

Consequently, profit for 2024 ended at NOK 243.3

million (NOK 185.3 million) and diluted earnings

per share were NOK 3.93 (NOK 3.10).

Consolidated statement of financial position

NORBIT had total assets of NOK 2 184.2 million at

31 December 2024, an increase from NOK 1 496.4

million at the end of 2023.

Total non-current assets amounted to NOK 1 216.4

million at 31 December 2024, up from NOK 655.2

million the year before, of which the largest items

include intangible assets, property, plant and

equipment and goodwill.

Goodwill amounted to NOK 497.4 million (NOK 111.1

million). The increase from year-end 2023 was pri-

marily explained by a NOK 381.3 million prelimi-

nary allocation to goodwill in connection with the

acquisition of Innomar.

CONTENTS

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FINANCIAL STATEMENTS

CONTACT

24

Board of directors’ report

Intangible assets rose to NOK 418.9 million (NOK

303.2 million) primarily due to NOK 104.8 million

in investments in R&D (NOK 60.2 million) and NOK

81.7 million in additions from acquisitions, partly

offset by amortisation. Total investments in R&D

during 2024 corresponded to 6.0 per cent of reve-

nues for 2024 (4.0 per cent).

Property, plant and equipment, including right of

use assets, increased to NOK 274.0 million (NOK

220.5 million), mainly explained by NOK 39.8 mil-

lion investments and additions of NOK 61.0 million

in right-of-use assets, partly offset by deprecia-

tions of NOK 59.3 million.

Total current assets amounted to NOK 967.8 mil-

lion, up from NOK 841.1 million at 31 December

2023.

At 31 December 2024, inventories amounted to

NOK 434.7 million, compared to NOK 562.0 million

at the end of 2023. Inventory reductions exceed-

ing NOK 130 million in 2024 were achieved by

more active inventory management and adapting

the purchasing strategies to a more normalised

component market.

Trade receivables were NOK 273.4 million at 31

December 2024, up from NOK 170.3 million as per

the end of 2023. The increase was explained by

Oceans’ revenue growth following a strong fourth

quarter where revenues were back-end loaded.

Cash and cash equivalents amounted to NOK

193.3 million at 31 December 2024, up from NOK

60.7 million at the end of 2023.

Total liabilities were NOK 1 026.8 million at year-

end 2024, up from NOK 702.9 million at 31 Decem-

ber 2023, of which the largest items include

interest-bearing borrowings, trade payables and

other current liabilities.

Total equity ended at NOK 1 157.3 million, up from

NOK 793.4 million at 31 December 2023. This rep-

resents an equity ratio of 53 per cent (53 per cent).

The increase is mainly explained by NOK 243.3

million in profit for the period, and share issues of

NOK 278.1 million, partly offset by NOK 152.9 mil-

lion in dividends paid. In July and as part of the

closing of the Innomar transaction, NORBIT settled

NOK 55.9 million of the purchase price in a share

issuance towards the founding management and

sellers of Innomar, while NOK 193.5 million was

raised in net proceeds in an equity private place-

ment to strengthen financial flexibility and capital

base for further growth.

Consolidated statement of cash flows

Operating activities generated a cash flow of NOK

430.9 million for 2024 (NOK 345.7 million), includ-

ing a net decrease in working capital of NOK

51.1 million (decrease of NOK 11.9 million). The

decrease was mainly driven by inventory reduc-

tion of NOK 133.9 million and a NOK 26.9 million

increase in accruals, partly offset by NOK 80.6 mil-

lion in an increase in trade receivables.

Cash flow used for investment activities was NOK

558.4 million for the year (NOK 149.0 million). The

investments mainly consist of NOK 413.7 million in

net cash outflow relating to acquisitions, of which

Innomar represented NOK 402.6 million, while

NOK 104.8 million was investments in R&D and

NOK 39.8 million was investments in property,

plant and equipment.

Financing activities generated a cash inflow of

NOK 260.1 million (cash inflow of NOK 177.7 mil-

lion), primarily explained by NOK 205.8 million in

net proceeds from issuance of shares, NOK 212.2

million increase in interest-bearing borrowings and

lease liabilities, as well as NOK 152.9 million in div-

idends paid.

Financing and capital structure

At the end of 2024, NORBIT had NOK 447.2 million

in interest-bearing borrowings (NOK 211.5 million)

and NOK 254.0 million (NOK 150.8 million) when

adjusting for cash and cash equivalents. NORBIT

had NOK 743.3 million in cash and undrawn com-

mitted credit facilities at 31 December 2024.

The group had three main loan facilities per end

2024, comprising of a long-term revolving credit

facility (RCF), a short-term overdraft facility and

one term loan. The credit limits are NOK 200 mil-

lion and NOK 350 million on the RCF and overdraft

facility, respectively.

NORBIT has a policy of maintaining a leverage

ratio, defined as net-interest-bearing borrowings

(including leasing liabilities) divided by EBITDA,

in the range of 1.0 – 2.5x. At the end of 2024, the

ratio was 0.7x (0.5x). The equity ratio was 53 per

cent (53 per cent).

Maintaining a strong balance sheet, a low funding

cost and optimising the cost of capital are key pri-

orities in the capital management policy. Further

information regarding NORBIT’s capital manage-

ment policy can be found in

note 21

to the financial

statements.

PARENT COMPANY RESULTS AND

ALLOCATION OF NET PROFIT

The financial statements for the parent company

are prepared in accordance with the Norwegian

Accounting Act and generally accepted account-

ing principles in Norway.

The parent company had a profit before taxes of

NOK 255.6 million (a profit of NOK 256.7 million).

After a tax expense of NOK 57.2 million (NOK 54.9

million), the company recorded a net profit of NOK

198.4 million (net profit of NOK 201.8 million).

Dividends

Amounts in NOK million

Dividend (NOK 3.00 per share)

190.9

Transferred to other equity

7.5

The proposed dividend consists of an ordinary

dividend of NOK 2.00 per share, representing

approximately 50 per cent of the reported net

profit, in addition to an extraordinary dividend of

NOK 1.00 per share. The proposed dividend will

be considered at NORBIT’s annual general meet-

ing on 6 May 2025.

For the fiscal year 2023, NORBIT paid dividends in

the aggregate amount of NOK 152.9 million (NOK

2.55 per share).

For more information on NORBIT’s dividend policy,

please refer to

page 14

.

CONTENTS

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FINANCIAL STATEMENTS

CONTACT

25

Board of directors’ report

SEGMENT INFORMATION

NORBIT is organised in three operating segments:

Oceans, Connectivity and Product Innovation and

Realization (PIR).

Oceans

Revenues for the segment amounted to NOK

743.9 million in 2024, representing an increase of

24 per cent from 2023 (NOK 599.0 million). Rev-

enue growth was primarily driven by increased

demand for sonars and related services, leading to

growth in sonar sales of 16 per cent to NOK 588.5

million in 2024. In addition, the acquisition of

Innomar contributed with NOK 51.5 million in reve-

nues for the second half of 2024.

The segment has a highly diversified customer

base worldwide, with the five largest customers in

2024 accounting for approximately 17 per cent of

revenues (14 per cent). Approximately 54 per cent

of the revenues were generated from customers

in Europe, Africa and Middle East, 24 per cent in

Americas and the remainder in Asia-Pacific.

Gross profit for the year ended at NOK 540.2

million (NOK 423.0 million), resulting in a gross

margin of 73 per cent (71 per cent). Innomar con-

tributed positively to the margin improvement in

2024 versus last year.

Employee benefit expenses were NOK 174.2

million in 2024 (NOK 130.8 million). Innomar

explained NOK 13.1 million of the increase, while

the remainder is explained by a general strength-

ening of the organisation to support long-term

growth and acquisitions made in 2023, for which

the full-year effect came this year.

Other operating expenses were NOK 79.7 million,

down two per cent from 2023 (NOK 81.1 million).

EBITDA for the Oceans segment was NOK 286.2

million for 2024 (NOK 211.1 million), representing a

margin of 38 per cent (35 per cent). The improved

results are due to increased sales combined with

higher gross margins.

Depreciation, amortisation and impairment

expenses were NOK 67.4 million, up from NOK

45.4 million in 2023. The increase was explained

by amortisation of completed R&D projects, as

well amortisation of excess values of intangible

assets in relation to the Innomar acquisition. In

addition, Oceans recognised NOK 3.4 million in

impairment in connection with the divestment of

underwater lighting products to the aquaculture

market.

EBIT was NOK 218.8 million in 2024 (NOK 165.7

million), corresponding to a margin of 29 per cent

(28 per cent).

Connectivity

Revenues for Connectivity amounted to NOK 515.7

million for 2024 (NOK 540.3 million). The decrease

of 5 per cent was largely explained by lower sales

of On-Board Units, where revenues declined to

NOK 194.4 million in 2024 (NOK 295.7 million),

partly compensated by an increase of units to sat-

ellite-based tolling to NOK 104.9 million (NOK 60.0

million). Revenues relating to DSRC technology

increased to NOK 408.9 million compared to NOK

447.8 million in 2022. Subscription and e-toll reve-

nues amounted to NOK 106.7 million compared to

NOK 92.4 million in 2023.

CONTENTS

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FINANCIAL STATEMENTS

CONTACT

26

Board of directors’ report

Connectivity has a concentrated customer base

with blue chip clients, where the five largest cus-

tomers accounted for 62 per cent of revenues (73

per cent). 100 per cent of the revenues were gen-

erated from customers in Europe.

Gross profit for the year ended at NOK 332.8 mil-

lion (NOK 331.9 million), resulting in a gross margin

of 65 per cent (61 per cent). The higher margin was

a result of product mix.

Employee benefit expenses were NOK 89.4 mil-

lion in 2024, in line with the level in 2023 (NOK

88.2 million). In 2024, an increase in the number of

employees and wage inflation was offset by higher

R&D capitalisation compared to 2023.

Other operating expenses were NOK 60.1 million,

up 3 per cent from 2023 (NOK 58.4 million).

For the full year of 2024, EBITDA for Connectivity

totalled NOK 183.3 million (NOK 185.3 million), rep-

resenting an EBITDA margin of 36 per cent (34 per

cent), as improved gross margin compensated for

the revenue decline.

Depreciation and amortisation expenses were

NOK 48.8 million in 2024 (NOK 46.1 million).

EBIT was NOK 134.5 million in 2024 (NOK 139.3

million), corresponding to a margin of 26 per cent

(26per cent).

Product Innovation & Realization (PIR)

Revenues for PIR amounted to NOK 543.1 mil-

lion for 2024 (NOK 411.8 million), representing

an increase of 32 per cent. Revenue growth was

driven by higher sales of contract manufactur-

ing, particularly towards the defence and security

industries. In 2024, contract manufacturing repre-

sented 84 per cent (77 per cent) of the revenues

in the segment, while R&D services and products

and customer reimbursements represented the

remainder. Within contract manufacturing, approx-

imately 24 per cent (45 per cent) of the revenues

related to the automotive industry, while 20 per

cent (six per cent) was towards the defence and

security sectors.

In 2024, increased deliveries to the largest cus-

tomers resulted in higher concentration in the

customer base. In 2024, the five largest custom-

ers accounted for 59 per cent of revenues (53 per

cent). Approximately 95 per cent of the revenues

were generated from customers in Europe.

Gross profit for the year ended at NOK 219.2 mil-

lion (NOK 178.6 million), resulting in a gross margin

of 40 per cent (43 per cent). The lower margin was

a result of customer mix and a weak first quarter

with sale of inventory and delivery of a low-mar-

gin project.

Employee benefit expenses were NOK 112.8 mil-

lion in 2024, an increase from NOK 95.0 million

in 2023. The increase was a result of new hires to

support the revenue growth, and wage inflation.

Other operating expenses were NOK 33.0 million

in 2024, largely in line with the level reported in

2023 (NOK 31.6 million).

EBITDA for the year was NOK 73.4 million (NOK

52.0 million), representing a margin of 14 per cent

(13 per cent).

Depreciation and amortisation expenses were

NOK 19.2 million in 2024 (NOK 17.3 million).

EBIT was NOK 54.2 million in 2024 (NOK 34.7 mil-

lion), corresponding to a margin of 10 per cent (8

per cent).

EVENTS AFTER THE BALANCE SHEET DATE

On 14 March, NORBIT announced that segment PIR

was awarded orders worth NOK 260 million from

an undisclosed contract manufacturing client in

the defence and security sector. Deliveries under

the contracts will commence immediately, with the

majority scheduled for second quarter of 2025.

RESEARCH AND DEVELOPMENT

Investments in research and development (R&D) is

an important part of NORBIT’s strategy to develop

new and innovative technological solutions to sup-

port long-term growth. In 2024, the group invested

a total of NOK 104.8 million in R&D (NOK 60.2 mil-

lion), representing 6.0 per cent of the revenues

for the year. A significant part of NORBIT’s invest-

ments in R&D in 2024 was allocated to the Oceans

segment for developing new acoustic technology,

and Connectivity for the development of the new

GNSS On-Board Unit.

In 2025, NORBIT expects its R&D investments to

be around NOK 100 million.

RISKS AND RISK MANAGEMENT

NORBIT is subject to several risks which may

affect the group’s operations, performance,

finances and share price. These risk factors are

further described below. These risks are moni-

tored by the corporate management and reported

to the board on a regular basis.

Operational risk

NORBIT considers its main operational risk to be

the shortage of supply of consumables/electronic

components. While production is an in-house

capability, NORBIT relies on a significant supply of

components to produce and deliver its products

and solutions. A large portion of the components

are bought in a global market. The supply mar-

ket for components improved during 2024. How-

ever, for certain semiconductor components, the

supply market is still challenging. Lead times are

generally improving but remain elevated for cer-

tain components, with a corresponding low visibil-

ity. To some extent, this impacts the scheduling of

planned deliveries, leading to delays.

NORBIT is working actively to manage and mit-

igate the risk of supply shortage by evaluating

the use of component equivalents in close dia-

logue with customers, as well as working with

suppliers to secure the raw material components

needed to deliver according to plans. The process

requires careful management, as changes in mar-

ket dynamics or reduced demand may negatively

impact NORBIT as a supplier, potentially leading to

obsolete inventory that has not been provided for

in the financial statements.

Price increases on raw materials components

continue to persist, although the pressure has

been reduced as inflation has come down in the

recent period. NORBIT continues to manage price

increases on components by taking appropriate

measures to maintain acceptable margins.

Market risk

The group’s activities are international, with the

delivery of high-technology products, systems and

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solutions with related services to a variety of mar-

kets and customers. Market risk can therefore vary

somewhat within these different segments. Fur-

ther, the group has exposure to a wide range of

industries through its engineering and manufac-

turing services, as it covers a wide variety of indus-

trial customers.

Each operating segment is exposed to a separate

competitive landscape. Increased competition in

the group’s markets may have a material adverse

effect on the group’s business, results and cash

flow.

Digital and cyber security risk

In an increasingly interconnected and digital-first

environment, safeguarding data, systems, and dig-

ital infrastructure is a critical priority. The cyber

threat landscape is continuously evolving, with risks

ranging from phishing attacks and ransomware to

data breaches and third-party vulnerabilities. Cyber

attacks could result in the interruption of critical

business functions that may materially impact the

business operations and financials. Such event may

also lead to loss of reputation and market position,

and NORBIT could face legal liabilities and penal-

ties. The IT department is actively taking measures

to reduce exposure to cyber security risks, in line

with recommendations from the NIS2 directive and

other relevant cyber security frameworks.

Geopolitical risk

Geopolitical risk has increased following the out-

break of wars, political unrest and trade sanc-

tions. NORBIT is a global group of companies with

approximately 80 per cent of its revenues gen-

erated outside of Norway. Furthermore, a large

part of the raw material components is bought in

a global market. Business operations are thus sig-

nificantly dependent on foreign trade. As a result,

NORBIT’s operations are subject to a variety of

country, regulatory and political risks, including,

but not limited to, regulatory changes, trade bar-

riers, restrictive government actions and changes

in law and policies. Sourcing of components might

also be subject to tariffs or increased costs, which

may not be recoverable. Tariffs may also be intro-

duced on imports of goods as restrictive actions. If

any of NORBIT’s products are subject to such tar-

iffs on importation, it may lead to increased costs

or reduced prices, affecting margins negatively.

Financial risk

NORBIT is exposed to several financial risks.

Note 5

to the financial statements explains the

group’s exposure to financial risks and how these

could affect the group’s future financial perfor-

mance. Financial risks are managed centrally by

the finance department.

Interest rate risk

The group’s main interest rate risk arises from bor-

rowings with variable rates in EUR, USD and NOK,

which expose the group to cash flow interest rate

risk. NORBIT had no financial instruments desig-

nated to hedge interest rate risk as per the end of

2024.

Trade and other receivables and trade and other

payables are interest free and with a term of less

than one year, hence there is no interest rate risk

associated with these financial assets and liabilities.

Currency risk

NORBIT has international operations and clients

and is exposed to currency risk through customer

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contracts and purchase of products and services

in currencies other than the functional currency

(NOK). NORBIT is primarily exposed to EUR and

USD currencies.

Fluctuations in exchange rates can lead to

increased or decreased profit margin in contracts

with customers compared to the initial project cal-

culus. The group was a net seller of EUR in 2024,

while the USD exposure was largely balanced.

The group rebalances the short-term (within 90

days) main currency exposures monthly to have

a neutral currency position on trade receivables,

trade payables and cash. NORBIT had no financial

instruments designated to hedge currency risk as

per the end of 2024.

Credit risk

The group is exposed to credit risk related to cash

and cash equivalents, trade receivables and other

current receivables. Cash is held with reputable

banks with strong credit ratings and low credit

risk. Receivables carry a higher credit risk as NOR-

BIT conducts its business with a fragmented cus-

tomer base. Historically, NORBIT has had limited

losses on its receivables.

The exposure to credit risk is monitored on an

ongoing basis within the finance department as a

risk mitigating action. The group’s receivables are

not credit insured.

Liquidity risk

Liquidity risk is the risk that the group is unable to

meet the obligations associated with its financial

liabilities. For NORBIT, liquidity risk is managed by

maintaining sufficient cash deposits and availa-

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29

Board of directors’ report

ble committed credit lines that the group can draw

on to meet its obligations as they occur. NORBIT

has a centrally managed multi-currency cash pool

arrangement where several subsidiaries are con-

nected. The liquidity trend is monitored frequently,

supported by budgets and forecasts.

At 31 December 2024, NORBIT had NOK 743.3 mil-

lion in cash and undrawn credit facilities.

CORPORATE GOVERNANCE

NORBIT ASA is subject to annual corporate gov-

ernance reporting requirements under §2-9 of the

Norwegian Accounting Act and the Norwegian

Code of Practice for Corporate Governance, cf.

section 4.4 of the Oslo Stock Exchange Rule Book

II. The Accounting Act may be found (in Norwe-

gian) at

www.lovdata.no

. The Norwegian Code of

Practice for Corporate Governance may be found

at

www.nues.no

. NORBIT ASA follows the Nor-

wegian Code of Practice for Corporate Govern-

ance, and the company’s practice is in accordance

with these recommendations. The annual state-

ment on corporate governance for 2024 has been

approved by the board and can be found in the

corporate governance section on

page 84

of this

annual report.

Director’s and officers’ liability insurance

NORBIT ASA has a directors and officers liabil-

ity insurance with AIG for the group, including the

parent company and its subsidiaries. The insur-

ance covers the board members, CEO and mem-

bers of the management team. The insurance

comprises personal legal liabilities, including

defence and legal costs.

CORPORATE SOCIAL RESPONSIBILITY

In 2024, NORBIT reports for the first time in

accordance with the European Sustainability

Reporting Standards (ESRS) under the Corpo-

rate Sustainability Reporting Directive (CSRD).

Included in this reporting is an annual statement

on the company’s efforts to secure equal opportu-

nities under §26-a in the Equality and Anti-discrim-

ination Act of Norway. The detailed reporting on

these topics can be found from

page 31

.

OUTLOOK

As NORBIT continues to expand across its three

business segments, the company remains well-po-

sitioned to capitalise on long-term growth drivers

and market opportunities. Each business segment

benefits from strong underlying trends, techno-

logical innovation and increasing demand from

customers. 2025 will mark NORBIT’s 30-year anni-

versary, a three-decade journey with relentless

focus on market-driven innovation and profitable

growth. As we head into the new year, the board

remains optimistic about the outlook for the year

and the prospects ahead. The target for 2025 is to

deliver revenues of NOK 2.2 – 2.3 billion with an

EBIT margin improvement compared to the 20 per

cent reported in 2024. The targets are supported

by growth and improved financial performance in

all three business segments. As in previous years,

quarterly seasonal fluctuations are expected,

along with the impact of currency movements as a

substantial share of NORBIT’s revenues is denomi-

nated in foreign currencies.

NORBIT’s capital allocation framework remains

firm. Investments in organic growth have been

the most important value driver in the past and

are expected to continue creating strong returns

going forward. In 2025, NORBIT expects its R&D

investments to be approximately NOK 100 million.

Investments in fixed assets are anticipated to be

around NOK 110 million, with a significant share of

the investments being allocated to the factories to

increase production capacity to deliver on the rev-

enue growth.

The ambition for 2027, which was set early 2024,

is to deliver organic revenues in excess of NOK

2.75 billion and an EBIT margin of around 20 per

cent. Strong demand across all segments provides

a solid foundation for NORBIT to take the next

step towards this ambition in 2025. The group’s

diversified product offering targeting multiple

industries and geographies, combined with the

organisation’s ability to leverage mega-trends and

to successfully introduce new market-driven inno-

vation, makes the company robust.

Oceans continues to expand its addressable mar-

ket for ocean exploration and security applications

through new product developments. Growth in

the blue economy, regional shifts towards renew-

able energy, alongside geopolitical unrest, drive

increased demand for NORBIT’s advanced sea-

bed exploration, inspection, and security surveil-

lance solutions. With its strong track record of

innovation, Oceans is well-positioned to capture

new market opportunities. Investments made in

new product development are driving the target to

deliver growth also in 2025.

For the Connectivity segment, there is increased

demand for digital transformation of operations, in

addition to technologies enabling safe and green

mobility. As an independent supplier of low power

wireless devices, Connectivity is strategically posi-

tioning itself to provide efficient and smarter tech-

nology solutions to its clients in the tolling domain

and other relevant markets. In 2025, Connectiv-

ity will add a new revenue stream by starting to

deliver its new and innovative GNSS OBU for sat-

ellite-based tolling to Toll4Europe under a con-

tract worth NOK 160 million. As European countries

increasingly focus on distance-based tolling for

heavy goods vehicles, supported by Electronic Toll

Services (EETS) companies such as Toll4Europe

providing seamless and efficient toll services

across Europe, Connectivity is in a strong position

to continue its growth beyond the initial contract.

In addition, Connectivity is experiencing increased

demand for enforcement modules for tachographs

as the EU requirement to replace all non-smart ana-

logue or digital tachographs has come into force

and all first-generation smart tachographs must be

upgraded by August 2025.

PIR achieved 32 per cent revenue growth in 2024.

A significant contributor to this growth was PIR’s

increased exposure to the defence and secu-

rity industries. In 2024, defence and security

accounted for 20 per cent of PIR’s revenues, up

from 6 per cent in 2023. In 2025, PIR is expected

to show strong growth, benefitting from the sec-

ular growth trend that the defence and security

industries are experiencing.

The board wishes to thank shareholders and

external stakeholders for their continued support,

as well as thank the management and all employ-

ees for their efforts and for the results achieved in

2024.

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Board of directors’ report

CONTENTS

I.

ESRS 2 General disclosures

............

32

II. Environment

........................................

49

Taxonomy (Disclosure pursuant to Article 8

of Regulation 2020/852)

.................................

49

ESRS E1 Climate change

..................................

57

ESRS E5

Resource use and circular

economy

................................................................

67

III. Social

...................................................

70

ESRS S1 Own workforce

...................................

70

IV. Governance

........................................

81

ESRS G1 Business conduct

..............................

81

SUSTAINABILITY STATEMENT

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31

Sustainability

BP-1

 

General basis for preparation of the sustainability statement

This sustainability statement has been prepared in

accordance with the EU’s Corporate Sustainability

Reporting Directive (CSRD) and is structured based

on the interpretation of the requirements outlined

in the European Sustainability Reporting Standards

(ESRS) 1 and 2. The statement covers NORBIT ASA

and all its subsidiaries on a consolidated basis for

the year 2024, with the same scope as the finan-

cial statements

1)

. No information is omitted due to

restrictions on intellectual property or knowhow.

While elements from both the upstream and down-

stream value chains are included, the coverage is

not exhaustive. NORBIT’s operations encompass

various activities, including research and develop-

ment, production and assembly, as well as sales,

marketing, and distribution across three segments,

each with a different geographical reach. Achiev-

ing a comprehensive overview of the upstream

and downstream value chains for these diverse

activities is a complex task. This statement reflects

the best available understanding to date, and the

reporting will be continuously refined in the com-

ing years.

BP-2

 

Disclosures in relation to specific circumstances

Table 1 highlights various mandatory topics related to sustainability reporting and the specific

circumstances under which they are disclosed.

Table 1

 – Overview of disclosures in relation to specific circumstances:

Time horizons

The sustainability statement follows the definition of time horizons as defined by ESRS 1, where short-term indicates up to one year, medium-term up to five years,

and long-term over five years.

Value chain estimations

As described in BP-1, the report mainly includes metrics and information from own operations. If metrics include upstream and/or downstream data, this is

commented on in the respective disclosures, together with the basis for preparation and level of accuracy.

Sources of estimation and outcome uncertainty

The quantitative metrics and monetary amounts that are subject to a high level of measurement uncertainty are identified and commented on in the respective

disclosures.

Changes in preparation or presentation of

sustainability information

No changes, first year of reporting.

Reporting errors in prior periods

No errors, first year of reporting.

Disclosures stemming from other legislation

or generally accepted sustainability reporting

pronouncements

When information stemming from other legislation which requires disclosure information is included, this is commented on in the respective disclosures.

Incorporation by reference

The structure outlined by the ESRS has been adhered to as closely as possible. References are made to other chapters within the sustainability statement using

the same codes as those employed by the ESRS for its chapters. References are also made to the annual report, but not to other external documents. Instead, the

content of those documents has been reproduced under the relevant disclosure. The data points linked to the annual report are listed in Table 2.

Use of phase-in provisions in accordance with

Appendix C of ESRS 1

1)

INNOMAR Technologie GmbH was acquired in July 2024 and is therefore not included in the double materiality assessment, which was completed earlier. However, INNOMAR is represented in all metrics under the disclosures of this report.

I.

ESRS 2 GENERAL DISCLOSURES

Table 2

 – Disclosures or datapoints incorporated by reference:

Denominator for the turnover KPI under the EU taxonomy

94

Denominator for the CAPEX KPI under the EU taxonomy

95

Turnover used to calculate intensity based GHG

94

GOV-1

  The role of the administrative, management and supervisory bodies

The role of the management and supervisory

bodies in overseeing sustainability at NORBIT is

anchored in governance documents owned by the

board of directors and the executive management

team. This includes key governance documents

such as the code of conduct, board of directors’

and CEO’s instructions, and the director of strat-

egy and ESG’s instructions.

NORBIT’s administrative, management and super-

visory bodies related to the company’s sustainabil-

ity work consists of three main entities (illustrated

in Figure 1):

^

An administrative and operational working

group

^

A managing and steering top executive

management team

^

An overseeing and supervisory board of

directors

The director of strategy and ESG, reporting

directly to the CEO, is responsible for overseeing

sustainability-related impacts, risks, and oppor-

tunities. This role is supported by an interdiscipli-

nary working group comprising members from HR,

strategy, and finance. The working group iden-

tifies key impacts, risks, and opportunities and

sets corresponding targets by involving internal

and external stakeholders, as described in SBM-

2. These activities, as well as status on impacts,

risks and opportunities, are reported to the exec-

utive management team in weekly meetings and

to the board of directors through board meetings

throughout the year, see GOV-2.

The CEO and the board of directors evaluate

annually whether the team led by director of strat-

egy and ESG has the appropriate skills and exper-

tise to oversee sustainability matters. In 2024,

external expertise and knowledge on ESG were

brought in through the software companies Celsia

and Ignite Procurement.

Figure 1

 – Illustration of administrative, management and supervisory bodies:

Board of directors

Executive management

Supervisory hierarchy

Operational hierarchy

Working group

The members of the three entities, their gen-

ders and expertise on sustainability matters are

described in Table 3, 4 and 5. The female to male

ratio of the administrative working group is two to

two. All members are employees, with one serving

as an executive and three as non-executive mem-

bers.

The female to male ratio of the executive manage-

ment team is two to five. All members of this group

are employees.

The female to male ratio of the board of directors

is two to three. 100 per cent of the directors are

considered independent. There are no employees

on the board of directors.

Table 3

 – Roles and gender balance in operational working group:

Project

leader

Female

33

Strategy development, impact analysis and

reporting.

Project

member

Male

30

Business analytics and financial modelling.

Project

member

Female

27

Leadership development, recruitment, and

organisational development.

Project

member

Male

53

Financial management, auditing, and reporting.

Table 4

 – Roles and gender balance in executive management team:

CEO

Male

53

Leading and managing complex value

chains and industry contexts, with a focus on

sustainability challenges and opportunities.

CFO

Male

39

Investments, capital markets, and financial

strategy, with experience from various

industries.

Director of

strategy and

ESG

Female

33

Strategy development, impact analysis and

reporting.

CTO

Male

52

Product development and production

methods, with expertise in assessing and

minimising sustainability impacts.

Business unit

director Oceans

Male

58

Developing and leading sustainability-

focused commercial initiatives, for instance

sonars for use in offshore wind markets.

CCO

Connectivity

and PIR

Male

38

Developing and leading sustainability-

focused commercial initiatives, for instance in

green mobility.

COO

Female

49

Leading and optimising operations for

efficiency and sustainability.

Table 5

 – Roles and gender balance in board of directors:

Chair

Male

Holds several chair positions and has wide experience

with governance related topics from the banking industry.

Deputy chair

Female

Experience from various central positions within the

Norwegian finance industry, including CEO of Oslo Stock

Exchange.

Director

Male

Extensive knowledge and experience in auditing and

financial management in publicly listed companies.

Director

Female

Holds several chair positions and has broad experience

from the automotive and truck industry.

Director

Male

Experienced portfolio manager in tactical asset

allocation, equities, and global fixed income.

GOV-2

  Information provided to, and sustainability matters addressed by the

undertaking's administrative, management and supervisory bodies

The management and supervisory bodies are

informed about material impacts, risks, and oppor-

tunities through a structured, integrated process.

The working group is responsible for identify-

ing relevant topics through a double materiality

assessment, of which the process is described

in IRO-1. Findings are presented to the executive

management team on an ongoing basis, while the

board of directors receives a presentation of these

at least once a year (see Table 6).

Table 6

 – Meeting structure of the administrative, management and supervisory bodies:

Working group

^

Once per week

^

Identifying and prioritising impacts, risks and

opportunities (based on stakeholder contact)

^

Defining targets and action plans for specific

projects

^

Reporting

Executive team

^

Once per week

^

Strategy workshops two

times per year

^

Director of strategy and ESG provides update on

progress

^

Strategic discussions related to sustainability

Board of directors

^

Eight board meetings

per year

^

Eight audit committee

meetings per year

^

Director of strategy and ESG provides short

updates in regular meetings

^

At least one board meeting and audit committee

meeting per year is dedicated to sustainability

topics

The ESG function is fully integrated with the com-

pany's strategy, as the director of strategy and

ESG is part of the executive management team.

The multidisciplinary working group, with repre-

sentatives from HR, strategy, and finance, ensures

a comprehensive approach to identifying and

assessing material impacts, risks, and opportu-

nities. These factors are considered by the man-

agement and supervisory bodies in overseeing

strategy, major transactions, and risk manage-

ment. Details on the impacts, risks, and oppor-

tunities addressed by these bodies are found in

SBM-3.

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Sustainability

GOV-3

  Integration of sustainability-related performance

in incentive schemes

Executive management compensation includes

a fixed salary, variable pay, pension benefits,

and non-financial benefits. The board of direc-

tors recommends remuneration guidelines, which

are updated, as a minimum every four year and

approved by the general meeting. These guide-

lines include five criteria for determining variable

pay. The fifth criterion, weighted at 20 per cent,

is a discretionary component based on an overall

assessment of the group's and management's per-

formance in selected focus areas, with overall sus-

tainability performance, both related to reporting

and initiatives and projects, highlighted for 2024.

GOV-4

  Statement on due diligence

Table 7 shows a mapping of the information pro-

vided in this sustainability statement related to the

due diligence process as described by the interna-

tional instruments of the UN Guiding Principles on

Business and Human Rights and the OECD Guide-

lines for Multinational Enterprises.

Table 7

 – Mapping of information related to the due diligence process:

Embedding due diligence in governance, strategy and

business model

^

ESRS 2 GOV-2

^

ESRS 2 GOV-3

^

ESRS 2 SBM-3

Engaging with affected stakeholders in all key steps of the

due diligence

^

ESRS 2 GOV-2

^

ESRS 2 SMB-2

^

ESRS 2 IRO-1

^

ESRS 2 MDR-P

^

Topical ESRS for all material topics

Identifying and assessing adverse impacts

^

ESRS 2 IRO-1

^

ESRS 2 SMB-3

^

Topical ESRS for all material topics

Taking actions to address those adverse impacts

^

ESRS 2 MDR-A

^

Topical ESRS for all material topics

Tracking the effectiveness of these efforts and

communicating

^

ESRS 2 MDR-M

^

ESRS 2 MDR-T

^

Topical ESRS for all material topics

GOV-5

 

Risk management and internal controls over sustainability reporting

Risk management and internal control are integral

components of corporate governance at NORBIT.

The company’s internal control system is built on

a framework of governance documents, including

management policies and corporate standards,

which guide the risk assessment and management

process.

NORBIT employs a risk assessment approach that

is iterative and collaborative, leveraging insights

from stakeholders and utilising the best available

information. It is the responsibility of the execu-

tive management team to identify, assess, develop

mitigation strategies for, communicate about,

and monitor identified risks. While this is primar-

ily a management function, relevant stakeholders

are engaged in the process when risks may arise

from or impact on their activities. Risks are cate-

gorised into five main categories: finance, legal,

operations, business/commercial and sustainabil-

ity. Director of strategy and ESG is responsible for

facilitating the overarching risk process.

In addition to the overarching risk management

approach, NORBIT has implemented a specific

process to manage risks related to sustainabil-

ity reporting. This process includes the follow-

ing steps, and the outcome of the process is

described in Table 8.

1.

Identify key risk factors based on input from

the organisation.

2.

Analyse risk factors to understand their nature

and potential consequences.

3.

Assess likelihood and impact on a scale from 1

to 3 and prioritise them in a risk matrix.

4.

Develop mitigation strategies for prioritised

risks.

5.

Communicate the risk framework to the

executive management team and the board of

directors.

6.

Continuously track risks and the effectiveness

of mitigation strategies.

Table 8

 – Risk matrix for the sustainability reporting process:

Evaluation:

L = Likelihood, I = Impact, R = Risk

1

2

2

Lack of accuracy and reliability of the data, i.e. data reflects what is meant to represent and

can be relied upon

1

2

2

Lack of sufficient resource allocation, incl. time, personnel, budget to properly gather, analyse

and report data

1

3

3

Lack of documentation of practices reported

1

2

2

Lack of integration of findings into business practices

2

2

4

The main features of mitigation and internal con-

trol processes to handle these risks include:

^

Collaborative review by a cross-functional

team, validating both qualitative and

quantitative data.

^

Regular reporting to the executive

management team and board of directors.

^

Documentation of reporting process and data

in a shared location.

^

Training of employees involved in the

sustainability reporting process.

^

Use of third-party software related to specific

topics, such as green house gas accounting, to

ensure overview and to reduce manual errors.

SBM-1

 

Strategy, business model and value chain

Key elements of the company and its general

strategy

NORBIT is a global provider of tailored technology

to selected applications, structured in three oper-

ational business segments to address key mar-

kets: Oceans, Connectivity and Product Innovation

& Realization (PIR). The Oceans segment delivers

tailored technology solutions to global maritime

markets. The Connectivity segment provides tai-

lored wireless solutions for identification, monitor-

ing and tracking for mobility, transportation and

industry markets. The PIR segment offers R&D

services and products, and contract manufactur-

ing to key industrial customers. Figure 2 shows

the operational sub segments of these three main

segments. NORBIT do not deliver products and

services that are banned in certain markets.

An overview of the number of employees in NOR-

BIT can be found in S1-6.

Figure 2

 – Overview of segments and subsegments:

CONNECTIVITY

NORBIT ASA

PIR

OCEANS

Subsea sonars

Security

Sub-bottom profilers

Other

On-board units

Enforcement modules

R&D services

Contract manufacturing

Satellite based tolling

Subscription and e-toll

Other

Description of business model and value chain

NORBIT’s business model is to develop (R&D), pro-

duce and assemble, market and distribute tech-

nology to industrial customers (B2B) across the

company’s three different business segments. The

value chain follows a similar structure for all seg-

ments, involving key inputs, processes and out-

puts, as illustrated in Figure 3. Key players in the

value chain include suppliers, customers, and dis-

tribution partners.

Figure 3

 – Value chain across all three segments:

The primary inputs include electronic components

that are assembled into final products, equip-

ment such as production lines and tools, energy to

power production sites, and business and technol-

ogy services.

NORBIT’s vision is to be “Recognised as world

class – enabling people to explore more”, mean-

ing providing technology that supports customers

in solving demanding challenges in complex envi-

ronments. The output of the value chain consists

of a range of technology products. Some of these

products are marketed under the NORBIT brand,

while others are developed for industrial clients

within the PIR segment. Distribution is handled

through a network of partners and direct channels

to efficiently reach global markets.

Sustainability-related goals

NORBIT's sustainability strategy is structured as

a goal hierarchy: overarching goals define the

strategic vision, supported by guiding policies,

concrete actions, and measurable targets. This

chapter outlines the overarching sustainability

goals, whereas policies, actions, and targets are

detailed in the relevant disclosure requirements

according to the identified material topics.

Figure 4

 – Goal hierarchy for sustainability-related goals:

Measureable targets

Level of detail

Low

High

Concrete actions

Guiding policies

Overarching goals

NORBIT’s ambition is to contribute to sustainable

development by creating products and solutions

that address sustainability challenges for cus-

tomers and society at large (external focus), while

ensuring responsible conduct within the value

chain (internal focus). This dual ambition leads

to the identification of four primary sustainability

objectives, illustrated in Figure 5. These objec-

tives are aligned with the company’s core val-

ues and vision. The first goal focuses on external

aspects, encompassing both environmental and

social impacts. The subsequent objectives, 2 to 4,

primarily reflect the internal perspective. Objec-

tive 2 pertains to environmental aspects (ESRS E),

objective 3 to social aspects (ESRS S), and objec-

tive 4 to governance aspects (ESRS G).

Figure 5

 – NORBIT’s overarching sustainability goals:

We will deliver

solutions

adapted to

the new

reality of

sustainability

Refinement of

talents in an attractive

place to work

Safe under pressure

with ethical business

conduct

Outside in (external perspective)

Inside out (internal perspective)

Explore more

sustainability

opportunities

1

2

3

4

A landscape shaped by global shifts towards resil-

ience, digitalisation and sustainability represents

opportunities for expansion and innovation across

all NORBIT’s segments. NORBIT is committed to

accelerating the green transition, and will contin-

uously explore how the company can contribute

to solving sustainability challenges for customers,

partners, and society at large through innovative

products and solutions.

Table 9 details out what this first goal means for

each segment. A selection of examples of how

NORBIT's products contribute to solving societal

challenges is presented on the next page of the

report.

Table 9

 – Overview of impact-related goals for all three segments:

Enhance seabed

exploration, inspection,

and security surveillance

solutions to support

the blue economy and

the transition towards

renewable energy

Promote digital

transformation and

safe, green mobility

through advanced

connectivity

technologies

Provide sustainable

and regional contract

manufacturing

services for key

industrial customers

Survey companies,

maritime rental companies,

maritime engineering

companies, port authorities,

scientific institutions etc.

Mobility and insurance

companies, industrial

customers etc.

Industrial companies

and scale-ups

developing

sustainable solutions

Globally (regions with

growing blue economies)

Europe

Europe

Environmental organisations,

governmental institutions

Technology companies,

transport authorities

Industry leaders

Products and solutions will be delivered with sus-

tainability in mind throughout the design, devel-

opment, production, transportation, and recycling

process. More details about policies, actions and

targets can be found in ESRS E1 and E5.

The people of NORBIT is the greatest asset, and

efforts will be continuously made towards creating

an attractive and safe workplace that refine tal-

ents. More details about policies, actions and tar-

gets can be found in ESRS S1.

Good governance and legal compliance will be

ensured in all countries and markets. The aim is for

transparency, traceability, and integrity across the

value chain. More details about policies, actions

and targets can be found in ESRS G1.

NORBIT’s engagement with key stakeholders

is summarised in Table 10. The purpose of this

engagement is to foster collaboration and mutual

understanding by addressing employee needs,

enhancing customer satisfaction, building strong

supplier relationships, securing investor confi-

dence, and positively contributing to local commu-

nities. The insights and feedback gathered from

stakeholders are integrated into NORBIT's strate-

gic planning, decision-making processes, and pol-

icy development. Management and supervisory

bodies are kept informed of stakeholder views and

interests as described in GOV-2.

CONTRIBUTING TO GREEN

ENERGY BUILD-OUT

Electricity consumption continues to rise, and the

need for energy security and decarbonisation is becoming more

urgent. The shift towards renewable energy is driven by global

efforts to address climate change, reduce dependence on fossil

fuels, and enhance energy resilience. Offshore wind power plays

a critical role in achieving these goals.

Expanding offshore wind capacity requires detailed

seabed mapping and infrastructure monitoring. NORBIT’s

advanced sonar technology is used in the early development

phase of wind farm projects to conduct precise seabed surveys,

ensuring optimal placement. Additionally, demand is increasing

for sonar solutions to monitor and maintain underwater infra-

structure throughout the operational lifespan of wind farms.

The EU, UK, and US aim to reach a combined offshore

wind capacity of over 140 GW by 2030, enough to power well

over 100 million homes. As offshore wind projects scale up glob-

ally, NORBIT’s sonar technology is actively supporting develop-

ment and operational monitoring in multiple wind farm projects

worldwide, contributing to a more sustainable energy future.

ENHANCING ROAD SAFETY THROUGH SMART

TACHOGRAPHS

The EU’s Mobility Package 1 aims to improve road

safety, driver working conditions, and fair competition in the

transport sector. Heavy goods vehicles are involved in over 3 500

fatal accidents in Europe annually, with driver fatigue and rule

violations being major contributing factors.

NORBIT’s enforcement modules for smart digi-

tal tachographs enable wireless data transmission from mov-

ing trucks to control officers, helping ensure compliance with

EU regulations on driving times, rest periods, and cross-border

operations. This allows for more targeted inspections, reducing

rule violations and improving road safety.

Since 2019, around 80 per cent of all trucks above 3.5

tons in Europe have been delivered with NORBIT technology,

contributing to safer roads. As EU regulations continue to phase

in, vehicles in cross-border traffic must upgrade by 2025, and

by 2026 the requirements will also apply to smaller commercial

vehicles.

PROTECTING CRITICAL

INFRASTRUCTURE AT SEA

Geopolitical instability and rising security threats

highlight the need for enhanced surveillance of critical infra-

structure at sea, including offshore energy facilities, communica-

tion cables, and ports. As vulnerabilities increase, governments

and industries are prioritising underwater security measures to

mitigate risks of disruption or sabotage.

SOLUTION:

NORBIT’s GuardPoint sonar surveillance system

provides real-time detection and tracking of divers and sub-

mersibles approaching critical assets. This technology enhances

protection of offshore infrastructure and maritime operations.

IMPACT:

With growing security concerns, most governments

now mandate underwater surveillance for critical infrastructure.

NORBIT’s security solutions are deployed by private corpora-

tions, navies, and government agencies across multiple coun-

tries, strengthening resilience against potential threats in an

increasingly uncertain global landscape.

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38

Sustainability

Table 10

 – Overview of key stakeholders:

Employees

(own workforce)

Formal and informal meetings through direct and indirect contact,

employee surveys, intranet

Working time, work-life balance, health and safety, gender equality

and diversity, training and skills development

See ESRS S1

Customers

Customer meetings and conferences, satisfaction surveys, website

Sustainable products and solutions, GHG emissions, governance

See ESRS E1 and E5, and ESRS G1

Suppliers and partners

Supplier meetings, visits and audits, self-assessments

Human rights, child labour, forced labour, health and safety

See ESRS G1

Investors

General meeting and other investor meetings, quarterly

presentations and reports, website

Corporate governance, taxonomy-alignment and reporting, working

conditions, equality and diversity, GHG emissions, sustainable

solutions

Regular financial and sustainability

reporting

Local communities

Meetings and conferences, website, annual report

Environmental practices, opportunities for employment

See ESRS S1 and ESRS E1

SBM-3

  Material impacts, risks and opportunities and their interaction with strategy and business model

A double materiality assessment has been con-

ducted and the process is described under section

IRO-1. The material positive and negative impacts,

risks and opportunities identified in this process

are outlined in Tables 11 and 12.

All identified impacts, risks, and opportunities are

aligned with the ESRS Disclosure Requirements,

none being entity specific. The impacts originate

from both the strategy, business model and oper-

ations of NORBIT, and can be categorised as both

external (originate through business relationships)

and internal (originate through own activities) as

mapped in column 5 of Tables 11 and 12. Whether

these impacts are positive or negative, the impact

they have on people, the environment, and NOR-

BIT, as well as strategies for addressing and build-

ing resilience against them, are further detailed

within the relevant disclosure requirements.

Table 11

 – Overview and description of material impacts:

E1 Climate change

Climate change mitigation

GHG emissions

^

Emissions are generated across the company and value

chain, with highest levels related to production facilities in

Norway and Hungary

^

Operations

^

Activity

M, L

E1 Climate change

Energy

Energy consumption and

mix

^

Energy use across the company, with highest levels at

production facilities in Norway and Hungary

^

Operations

^

Activity

M, L

E5 Circular economy

Waste

Generation of EE waste

^

Generated within own operations and during end-use,

relevant for all segments and geographies

^

Business model and operations

^

Business relationships and activity

S, M, L

S1 Own workforce

Working conditions

Social dialogue

^

Own operations in all segments and geographies

^

Strategy

^

Activity

S, M, L

S1 Own workforce

Working conditions

Freedom of association

and existence of work

councils

^

Own operations in all segments and geographies

^

Strategy

^

Activity

S, M, L

S1 Own workforce

Working conditions

Work-life balance

^

Own operations in all segments and geographies

^

Strategy

^

Activity

S, M

S1 Own workforce

Working conditions

Health and safety

^

Own operations in all segments and geographies, with most

impact on production facilities in Norway and Hungary

^

Operations

^

Activity

S, M, L

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S1 Own workforce

Equal treatment and

opportunities for all

Training and skills

development

^

Own operations in all segments and geographies

^

Strategy

^

Activity

S, M, L

S1 Own workforce

Equal treatment and

opportunities for all

Gender equality

^

Own operations in all segments and geographies

^

Strategy

^

Activity

S, M, L

S1 Own workforce

Equal treatment and

opportunities for all

Diversity

^

Own operations in all segments and geographies

^

Strategy

^

Activity

S, M, L

S2 Workers in the value

chain

Working conditions

Working conditions in

supply chain

2)

^

Relevant for supply chain in all segments, most concern in

Asia

^

Operations

^

Business relationships

S, M, L

G1 Business conduct

Corporate culture

Business conduct

policies and practices

^

Own operations and supply chain in all segments and

geographies

^

Operations and business model

^

Activity and business relationship

S, M, L

G1 Business conduct

Corporate culture

Whistleblower

mechanisms and

processes

^

Own operations and supply chain in all segments and

geographies

^

Operations

^

Activity and business relationship

S, M, L

G1 Business conduct

Corporate culture

Practices for supplier

qualification

^

Relevant for supply chain in all segments, most concern in

Asia

^

Operations

^

Business relationships

S, M, L

1)

The expected time horizons of the impacts, risks and opportunities are indicated with S for short, M for medium and L for long according to the definition in ESRS.

2) With reference to ESRS 1 Appendix C: List of phased-in disclosure requirements, topics within S2 is omitted, even though the topic is considered material in this years’ materiality analysis. Undertakings not exceeding 750 employees during the

financial year may omit the information specified in ESRS S2 for the first 2 years of preparation of the sustainability statement.

Table 12

 – Overview and description of material risks and opportunities:

(NOK million)

E1 Climate change

Climate change mitigation

Business opportunities

from changes in legal

requirements

^

Downstream value chain in all segments

^

Business model and strategy

^

Activity

>100

M, L

E1 Climate change

Climate change adaptation

Scarcity of components

due to climate change

^

Relevant for upstream value chain in all segments,

most concern in Asia

^

Operations and strategy

^

Business relationships

>100

L

E5 Circular economy

Waste

Refurbishment services

^

Primarily the Connectivity segment in the

European market

^

Business model and strategy

^

Business relationships

>100

S, M, L

S1 Own workforce

Working conditions

Talent acquisition

^

Own operations and supply chain in all segments

and geographies

^

Strategy

^

Activity

>100

S, M, L

Table 13 lists the overall ESRS topics that are not

identified as material and describes the overall

assessments that form the basis for this conclu-

sion. The general analytical approach in identify-

ing material impacts, risks and opportunities, as

well as evaluating them, is detailed under IRO-1.

Table 13

 – Overview and overall assessment of non-material topics:

E2 Pollution

Low scale of pollution in NORBIT's operations compared to other industries. While

moderate risks exist in the supply chain, the overall likelihood and impact from

NORBIT’s core activities remain low.

E3 Water and

marine resources

NORBIT operates in areas without water usage restrictions or scarcity, and the

production has low water consumption. While there is a moderate risk in the supply

chain, the overall impact remains low. Additionally, NORBIT does not extract marine

resources, making the relevance of this issue low.

E4 Biodiversity

and ecosystems

The electronics industry has a considerably lower direct impact on natural habitats

compared to industries like mining or agriculture. According to the WWF's "Living

Planet Report," typical sectors with significant biodiversity impact are agriculture,

forestry, and fisheries, while electronics is not highlighted.

S3 Affected

communities

Issues such as housing, food security, water, and sanitation are already addressed

by national welfare systems, especially in Norway. Unlike extractive industries, the

electronics sector has small land use and direct interaction with local communities.

S4 Consumers

and end-users

NORBIT's products target a niche B2B market of knowledgeable users, minimising

concerns related to freedom of expression and access to information. These products

adhere to stringent safety and performance regulations that inherently address health

and safety issues. Additionally, since the products cater to professional sectors, they

do not engage with broader social inclusion issues like non-discrimination or equita-

ble access.

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41

Sustainability

IRO-1

 

Description of the processes to identify and assess material impacts, risks and opportunities

Assumptions and scoping

^

The analyses cover all regions where NORBIT

operates, with a focus on Norway due to

significant employee presence (see ESRS S1).

^

All three business segments are included.

Despite diverse products and markets within

these segments, they share similar business

activities.

^

The focus is primarily on NORBIT's own

operations and immediate upstream value

chain, particularly component producers,

based on the following considerations:

—

NORBIT’s integrated value chain results

in numerous topics that require attention.

Focusing on own operations ensures

implementation of sustainability practices

where NORBIT has control and influence.

—

NORBIT has greater influence over

immediate suppliers compared to raw

material suppliers. Extending the focus too

broadly could dilute efforts and reduce the

effectiveness of identifying and mitigating

impacts, risks, and opportunities.

—

Component suppliers are typically large,

well-established corporations with robust

sustainability systems in place. Many holds

relevant certifications and undergo regular

independent audits, providing confidence in

their management of upstream impacts.

—

As NORBIT's capabilities and resources

expand, the assessment scope should

gradually extend further upstream and

downstream. This approach will also evolve

with industry standards and stakeholder

expectations.

^

The sub-analyses draw from a variety of

sources, including formal and informal

stakeholder dialogue, internal data sources

(such as annual reports, strategic documents,

internal assessments), external data sources

(such as industry reports and benchmarks,

regulatory requirements, peer and competitor

benchmark), and data analytic tools.

The process of identifying impacts, risks and

opportunities

NORBIT has identified impacts, risks, and opportu-

nities through three sub-analyses:

^

The aim of the context analysis

was to provide an overview of NORBIT’s value

chain, business activities, business models,

and geographical footprint. The approach

involved interviewing key internal stakeholders,

including group management, business unit

directors, and supply chain functions, who

have a comprehensive understanding of the

business. This analysis contributes to insights

under SBM-1.

^

The stakeholder analysis aimed to map

out NORBIT's key stakeholder groups, as

detailed in SBM-2. After identifying the main

stakeholder groups, specific individuals or

groups within each stakeholder group were

involved to provide input on material impacts,

risks, and opportunities. A total of 43 interviews

were conducted, with 25 external and 18

internal stakeholders. Internal stakeholders

include employees at all levels of NORBIT.

External stakeholders include customers,

investors, lenders, local communities,

and suppliers. Also, secondary sources of

information, for instance meeting summaries

from working environment committees, were

used in this analysis.

^

To align findings from the

context and stakeholder analyses, an industry

analysis was conducted. This included an

assessment of industry regulations and scientific

research relevant to NORBIT’s operations.

Examples of the regulations and frameworks

considered include the EU taxonomy regulation

and the Sustainability Accounting Standards

Board (SASB) materiality finder.

The relation between the process of identifying

risks and opportunities, and the overall risk man-

agement process in NORBIT is described under

GOV-5. Specific IRO-1 disclosure requirements for

the different material topics are described under

the topical disclosures,

page 58

for E1,

page 67

for

E5, and

page 81

for G1. It is mandatory to disclose

specific IRO-1 requirements for all topics under

ESRS E even though the sub-topic is not chosen

as material. This information

is therefore summa-

rised in Table 14.

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Table 14

 – Specific IRO-1 disclosure requirements for topics under “environment” not chosen as material:

E2 Pollution

Focus is put on assessing pollution-related impacts, risks and opportunities at production sites in Norway. Analysis of the upstream and downstream value

chain is not included at this point. Consultations with representatives of affected communities are conducted for Trondheim, Røros and Selbu.

E3 Water and marine resources

Focus is put on assessing water-related impacts, risks and opportunities at production sites in Norway. Analysis of the upstream and downstream value chain

not included at this point. Consultations with representatives of affected communities are conducted for Trondheim, Røros and Selbu.

E4 Biodiversity and ecosystems

Focus is put on assessing biodiversity-related impacts, risks and opportunities at production sites in Norway. Analysis of the upstream and downstream value

chain not included at this point. Consultations with representatives of affected communities are conducted for Trondheim, Røros and Selbu. Initial screening

has not identified significant risks requiring specific biodiversity mitigation measures per EU Directives or international standards.

The process of assessing impacts, risks and

opportunities

All three analyses generated a comprehensive

list of impacts, risks, and opportunities, which was

aligned with the sustainability matters covered

in topical ESRS. Each impact, risk, and opportu-

nity was matched to a corresponding sub-topic or

sub-sub-topic in the ESRS. Consequently, each

sub-topic or sub-sub-topic could have multiple

associated impacts, risks, or opportunities.

Each impact, risk, and opportunity was then prior-

itised based on the product of severity and like-

lihood, resulting in a materiality score. Table 15

provides the definitions of the scoring dimensions

used, and how they were calculated.

Table 15

 – Definition of different components used in scoring topics:

Scale

How grave the negative impact or beneficial the positive impact is for people or the environment

Scope

How widespread the negative or positive impact is. In the case of environmental impacts, the scope may be understood as the extent of environmental

damage or a geographical perimeter. In the case of impacts on people, the scope may be understood as the number of people adversely affected

Irremediability

Whether and to what extent the negative impacts could be remediated, i.e., restoring the environment or affected people to their prior state

Severity

Impacts

The average of scale, scope and irremediability scores

Risks and opportunities

Expected financial impact of opportunities (increase in EBITDA) and risks (decrease in EBITDA)

Likelihood

Likelihood that a topic will impact stakeholders or the business if there is no action or system in place for mitigating the risk within the company (inherent risk)

The process for assigning scores was based on

a predefined scale that defined what each score

represented, as described in Table 16. To refine

the scope score for workforce-related topics, a

separate scale was used based on the percentage

of the workforce impacted, allowing these topics

to be appropriately weighted against other topics.

One working group member assigned the initial

score based on the predefined scale and informa-

tion from the stakeholder dialogues. Two other

working group members conducted a sanity check

and made necessary adjustments.

For risks and opportunities, each score was asso-

ciated with a monetary range that reflected the

financial materiality, calculated based on histor-

ical data when available, expert discussions, or

assumptions based on best guesses.

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Sustainability

Table 16

 – Scoring levels for each dimension:

(NOK million)

1

Minor impact, little harm or benefit

Affects 0-20% of

employees

Very limited environmental effect

or effect on external people

Fully remediable with minimal

effort and resources

Extremely unlikely, almost

hypothetical

0-5

2

Noticeable, but not severe

Affects 21-40% of

employees

Limited environmental effect or

effect on external people

Mostly remediable, minor residual

effects may remain

Unlikely, may occur in

unusual circumstances

5-10

3

Considerable, clear effect

Affects 41-60% of

employees

Moderate environmental effect

or effect on external people

Partially remediable, significant

long-term effects remain

Moderate likelihood, possible

under certain conditions

10-50

4

Large, substantial impact

Affects 61-80% of

employees

Effect on local communities or

regions

Largely irremediable, minimal

reversibility

High chance of occurrence,

expected in near future

50-100

5

Extremely grave or beneficial

Affects 81-100% of

employees

National or global effect

Irremediable, permanent damage

Almost certain to occur,

highly probable

>100

This methodology produced a materiality score

(product of severity and likelihood) ranging from

0 to 25 for each impact, risk, and opportunity. The

threshold for a topic to be considered material was

set at a score above 12.5. The threshold was set

based on the following three principles:

^

It had to be low enough to include the

topics perceived as the most material by the

organisation.

^

It had to be high enough to distinguish

between material and non-material topics,

balancing the need to address critical issues

with the risk of spending too much time and

resources on less significant matters.

^

It had to align with the general risk orientation

of NOBRIT and be approved by the board of

directors.

This threshold is illustrated in Figure 6, where the

dark grey area is the combinations of severity and

likelihood that gives a materiality score above 12.5.

A sensitivity analysis was conducted to further san-

ity check this threshold. Figure 7 illustrates how the

number of material topics decreases as the mate-

riality threshold increases. Initially, there is a slight

decline in the number of material topics from 77

down to 59 as the threshold increases from 0

Figure 6

 – Materiality threshold illustrated:

1

1

2

2

3

3

4

4

5

5

Likelihood

Figure 7

 – Sensitivity analysis of threshold:

0

10

20

30

40

50

60

70

80

90

77

Materiality threshold

76

73

70

67

65

64

60

59

52

47

35

28

18

16

12

11

9

7

4

3

3

2

2

2

2

2

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IRO-2

 

Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement

Table 17 provides an overview of the disclosure

requirements adhered to in this sustainability state-

ment, based on the double materiality assess-

ment. Topics not included in Table 17 were excluded

because they did not meet the materiality threshold.

A brief explanation of why these topics is consid-

ered not material is available in Table 14, while the

methodology for setting the materiality threshold is

outlined under IRO-1.

Table 18 lists all required data points derived from

other EU legislation, along with references to where

each data point is addressed in the sustainability

statement.

Table 17

 – Overview of disclosure requirements related to the material topics:

BP-1 General basis for preparation of the sustainability statement

32

Mandatory

BP-2 Disclosures in relation to specific circumstances

32

Mandatory

GOV-1 The role of the administrative, management and supervisory bodies

33

Mandatory

GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and

supervisory bodies

34

Mandatory

GOV-3 Integration of sustainability-related performance in incentive schemes

35

Mandatory

GOV-4 Statement on due diligence

35

Mandatory

GOV-5 Risk management and internal controls over sustainability reporting

35

Mandatory

SBM-1 Strategy, business model and value chain

36

Mandatory

SBM-2 Interests and views of stakeholders

37

Mandatory

SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

39

Mandatory

IRO-1 Description of the process to identify and assess material impacts, risks and opportunities

42

Mandatory

IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement

45

Mandatory

ESRS 2 GOV-3 Integration of sustainability-related performance and incentive schemes

57

Mandatory

Context to 1, 2, 15, 16, 17

E1-1 Transition plan for climate change mitigation

57

Mandatory

Context to 1, 2, 15, 16, 17

ESRS 2 IRO-1 Description of the process to identify and assess material climate-related impacts, risks and opportunities

58

Mandatory

Context to 1, 2, 15, 16, 17

ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

58

Mandatory

Context to 1, 2, 15, 16, 17

E1-2 Policies related to climate change mitigation and adaptation

61

Mandatory

Context to 1, 2, 15, 16, 17

E1-3 Actions and resources in relation to climate change policies

62

Mandatory

Context to 1, 2, 15, 16, 17

E1-4 Targets related to climate change mitigation and adaptation

63

Mandatory

Context to 1, 2, 15, 16, 17

E1-5 Energy consumption and mix

64

Material

2

E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions

65

Material

1

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ESRS 2 IRO-1 Description of the processes to identify and assess material resource use and circular economy-related

impacts, risks and opportunities

67

Mandatory

Context to 3, 17

E5-1 Policies related to resource use and circular economy

67

Mandatory

Context to 3, 17

E5-2 Actions and resources related to resource use and circular economy

68

Mandatory

Context to 3, 17

E5-3 Targets related to resource use and circular economy

68

Mandatory

Context to 3, 17

E5-5 Resource outflows

69

Material

3, 17

ESRS 2 SBM-2 Interest and views of stakeholders

70

Mandatory

Context to 4, 5, 6, 7, 8, 9, 10, 18

ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

70

Mandatory

Context to 4, 5, 6, 7, 8, 9, 10, 18

S1-1 Policies related to own workforce

71

Mandatory

Context to 4, 5, 6, 7, 8, 9, 10, 18

S1-2 Process for engaging with own workers and workers’ representatives about impacts

73

Mandatory

Context to 4, 5, 6, 7, 8, 9, 10, 18

S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns

73

Mandatory

Context to 4, 5, 6, 7, 8, 9, 10, 18

S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material

opportunities related to own workforce, and effectiveness of those actions

74

Mandatory

Context to 4, 5, 6, 7, 8, 9, 10, 18

S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and

opportunities

76

Mandatory

Context to 4, 5, 6, 7, 8, 9, 10, 18

S1-6 Characteristics of undertaking’s employees

77

Material

Context to 4, 5, 6, 7, 8, 9, 10, 18

S1-8 Collective bargaining coverage and social dialogue

78

Material

4, 5

S1-9 Diversity metrics

78

Material

9, 10

S1-13 Training and skills development metrics

78

Material

8, 9, 18

S1-14 Health and safety metrics

79

Material

7

S1-15 Work life balance metrics

79

Material

6, 9

S1-16 Renumeration metrics (pay gap and total renumeration)

80

Material

9

ESRS 2 GOV-1 The role of the administrative, supervisory and management bodies

81

Mandatory

Context to 12, 13, 14

ESRS 2 IRO-1 Description of the processes to identify and address material impacts, risks and opportunities

81

Mandatory

Context to 12, 13, 14

SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

81

Mandatory

Context to 12, 13, 14

G1-1 Corporate culture and business conduct policies

82

Mandatory

12, 13

G1-2 Management of relationships with suppliers

83

Material

14

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Table 18

 – Datapoints derived from other EU legislation and reference to page number:

ESRS 2 GOV-4 Statement on due diligence paragraph 30

5

ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i

Not relevant

ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii

Not relevant

ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii

Not relevant

ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv

Not relevant

ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14

57

ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38

Not relevant

ESRS E1-5 Energy consumption and mix paragraph 37

64

ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43

Not relevant

ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44

64

ESRS E1-7 GHG removals and carbon credits paragraph 56

Not material

ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66

Not material

ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a)

Not material

ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c)

Not material

ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c).

Not material

ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69

Not material

ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28

Not material

ESRS E3-1 Water and marine resources paragraph 9

Not material

ESRS E3-1 Dedicated policy paragraph 13

Not material

ESRS E3-1 Sustainable oceans and seas paragraph 14

Not material

ESRS E3-4 Total water recycled and reused paragraph 28 (c)

Not material

ESRS E3-4 Total water consumption in m

3

per net revenue on own operations paragraph 29

Not material

ESRS 2- IRO 1 - E4 paragraph 16 (a) i

Not material

ESRS 2- IRO 1 - E4 paragraph 16 (b)

Not material

ESRS 2- IRO 1 - E4 paragraph 16 (c)

Not material

ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b)

Not material

ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c)

Not material

ESRS E4-2 Policies to address deforestation paragraph 24 (d)

Not material

ESRS E5-5 Non-recycled waste paragraph 37 (d)

ESRS E5-5 Hazardous waste and radioactive waste paragraph 39

69

ESRS 2- SBM - S1 Risk of incidents of forced labour paragraph 14 (f)

70

ESRS 2- SBM - S1 Risk of incidents of child labour paragraph 14 (g)

70

ESRS S1-1 Human rights policy commitments paragraph 20

72

ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21

72

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ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22

72

ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c)

79

ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)

79

ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)

80

ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)

80

ESRS S1-17 Incidents of discrimination paragraph 103 (a)

Not material

ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a)

Not material

ESRS 2- SBM – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b)

Omitted in this years’ reporting, with

reference to ESRS E1 Appendix C

ESRS S2-1 Human rights policy commitments paragraph 17

ESRS S2-1 Policies related to value chain workers paragraph 18

ESRS S2-1Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19

ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19

ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36

ESRS S3-1 Human rights policy commitments paragraph 16

Not material

ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17

Not material

ESRS S3-4 Human rights issues and incidents paragraph 36

Not material

ESRS S4-1 Policies related to consumers and end-users paragraph 16

Not material

ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b)

82

ESRS G1-1 Protection of whistle- blowers paragraph 10 (d)

83

ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a)

Not material

ESRS G1-4 Standards of anti- corruption and anti- bribery paragraph 24 (b)

Not material

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TAXONOMY (DISCLOSURE PURSUANT TO ARTICLE 8 OF REGULATION 2020/852)

Background

The EU Taxonomy Regulation (2020/852) entered

into force on 12 July 2020. The Delegated Acts

currently in force include the Climate Delegated

Act (2021/2139), the Disclosures Delegated Act

(2021/2178), the Complementary Climate Dele-

gated Act (2022/1214), the Environmental Dele-

gated Act (2023/2486), and amendments to the

Climate Delegated Act (2023/2485). As of now,

large, public-interest undertakings are required to

report under the EU Taxonomy Regulation.

In 2024, NORBIT conducted a taxonomy assess-

ment structured in four main steps, detailed in the

following chapters. The taxonomy assessment

encompasses all the company’s economic activ-

ities, and the scope aligns with the consolidated

group’s financial reporting boundaries.

Definition of eligible activities

The EU taxonomy is a classification system that

sets out a list of environmentally sustainable eco-

nomic activities. The Delegated Acts define eli-

gible activities together with technical screening

criteria for when the activities can be considered

sustainable (aligned). NORBIT has systematically

mapped all the company’s activities and catego-

rised them as eligible or non-eligible based on the

regulation’s descriptions. Table 19 summarises the

eligible activities identified.

Table 19

 – Overview of eligible activities under the Taxonomy:

Manufacturing of electrical and

electronic equipment

Circular economy

Manufacturing of electrical and electronic equipment for industrial,

professional and consumer use.

^

On-Board units

^

Enforcement modules for tachographs

^

Satellite-based tolling

^

Other

^

Subsea sonars

^

Sub bottom profilers

^

Security

^

Other

^

Contract manufacturing

^

R&D services

Repair, refurbishment and

remanufacturing

Circular economy

Repair, refurbishment and remanufacturing of goods that have been used for their

intended purpose before by a customer (physical person or legal person).

^

On-Board units

II.

ENVIRONMENT

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Most of NORBIT's buildings are production facil-

ities directly tied to manufacturing, along with

R&D spaces for developing the technologies pro-

duced. These facilities are essential to the activities

reported in section 1.2 and are therefore included

in the reporting for these activities, and not under a

separate building activity defined in the taxonomy.

Definition of reporting units

Given NORBIT's diverse product portfolio which

includes both standalone items and product fam-

ilies, a reporting framework has been developed

to categorise products into groups based on their

functions and features. These categories are

described in column 4 in Table 19, and align with the

financial reporting framework.

Assessment of degree of alignment

For an eligible activity to be considered aligned, it

must satisfy the following conditions:

1.

The company must fulfill the minimum

safeguard standards based on OECD and UN

guidelines.

2.

The activity must make a substantial contribution

to one or more of the climate and environmental

objectives relevant to that activity.

3.

The activity must do no significant harm to the

other remaining objectives.

Each activity has been evaluated against these

screening criteria, using both explicit information

and an understanding of the intent behind the

requirements, supplemented by the best available

knowledge.

First, the minimum safeguard criteria were

mapped on group level (point 1 above). As the Tax-

onomy Regulation has not defined explicit crite-

ria for minimum safeguards beyond referencing

OECD and UN guidelines, NORBIT has assessed

requirements based on the due diligence pro-

cesses outlined in these frameworks. NORBIT

meets the minimal safeguard criteria by address-

ing topics such as human rights, anti-corruption,

and fair competition. The code of conduct, aligned

with OECD guidelines, applies to both employees

and suppliers, and all employees receive training

on its content. Risk assessments, reporting under

the Transparency Act, and measures to promote

ethical business conduct are conducted annually.

This is described in more detail in ESRS 2 and G1.

Next, each individual activity was mapped against

both the substantial contribution and the do no

significant harm criteria (point 2 and 3 above). The

mapping was done for each product group, equiv-

alent to the reporting units described above. This

approach was carried out conservatively, meaning

that non-alignment was reported if any individual

product within the group did not meet the criteria.

The mapping methodology was multifaceted due

to the diverse nature and number of criteria. The

process included consultations with key person-

nel across segments, such as employees from

R&D, QA and other relevant teams. Parts lists,

product descriptions and specifications were also

reviewed, often by use of compliance tools such

as Silicon Expert. Certain criteria were related

to topics already covered in other areas of ESRS

reporting, such as climate adaptation, and the

mapping for these topics was therefore based on

information obtained through the double material-

ity assessment.

Tables 20, 21 and 22 provide a qualitative over-

view of alignment to the criteria, for each of the

six environmental goals under the taxonomy. The

"Other" group in both the Oceans and Connectiv-

ity segment is characterised by low revenue and

significant variation in product types. As a result,

a detailed assessment of this group has not been

prioritised for this reporting period, and criteria

demanding detailed materials mapping is there-

fore set to “not aligned”. This is a conservative

approach which will be developed in future report-

ing.

Table 20

 – Overview of alignment for the subsegments of Oceans for activity 1.2 Manufacturing of electrical and electronic equipment:

Climate change mitigation

Aligned. Products do not contain refrigerants or SF6.

Climate change adaptation

Aligned. Climate risk analysis has been conducted and is described in E1.

Sustainable use and protection of

water and marine resources

Aligned. No projects or assets fall under Annex I of the Environmental Impact Assessment Directive.

Analysis confirms no impact on achieving good environmental status of marine waters.

Transition to a circular economy

Requirement text from EU is broken down into criteria, where 24 of 30 criteria are met.

Aligned on topics related to repair and software. Non-aligned criteria relate to information on how to recycle products.

Not mapped in detail. Chosen to report as not aligned

until more thorough analysis is conducted.

Pollution prevention and control

Aligned. Each product group is assessed through analysing components and their substances.

No persistent organic pollutants, mercury, ozone depleting substances in products. RoHS and REACH compliant.

Not mapped in detail. Chosen to report as not aligned

until more thorough analysis is conducted.

Protection and restoration of

biodiversity and ecosystems

Aligned. No projects or assets falling under Annex I and II of EIA. No site or operation in biodiversity-sensitive areas.

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Table 21

 –

Overview of alignment for the subsegments of Connectivity for activity 1.2 Manufacturing of electrical and electronic equipment:

Aligned. Products do not contain refrigerants or SF6.

Aligned. Climate risk analysis has been conducted and is detailed in E1.

Aligned. No projects or assets fall under Annex I of the Environmental Impact Assessment Directive.

Aligned. Software not used to negatively affect circularity of product. Information on end-of-life management provided on

website, product properly marked, work with B2B customers to meet Extended Producer Responsibility (EPR) obligations as per

Member State regulations.

Not mapped in detail.

Chosen to report as not aligned until

more thorough analysis is conducted.

Aligned. Each product is assessed through analysing components and their substances.

No persistent organic pollutants, mercury, ozone depleting substances in products. RoHS and REACH compliant.

Not mapped in detail.

Chosen to report as not aligned until

more thorough analysis is conducted.

Aligned. No projects or assets falling under Annex I and II of EIA. No site or operation in biodiversity-sensitive areas.

Table 22

 – Overview of alignment for the subsegments of Connectivity for activity 5.1 Repair, refurbishment and remanufacturing:

Aligned. No on-site generation of heat/cool or co-generation including power.

Aligned. Climate risk analysis has been conducted and is detailed in E1.

Aligned. No projects or assets fall under Annex I of the Environmental Impact Assessment Directive.

Aligned. Ensures all refurbished products are sold under contracts adhering to conformity and liability standards and implementing waste

management plans that prioritises reuse and recycling of materials.

Aligned. Each product is assessed through analysing components and their substances. No persistent organic pollutants, mercury, ozone depleting

substances in products. RoHS and REACH compliant.

The contract manufacturing activity under the PIR

segment is considered eligible under activity 1.2.

However, due to the complexity of mapping numer-

ous products for which NORBIT does not retain

product ownership, nor full control over design and

material decisions, a detailed assessment is not

conducted during this reporting period. As a result,

this activity has conservatively been classified as

'non-aligned'. This methodology will be further

evolved in later reporting years.

Calculation and presentation of KPIs

The definitions of the turnover, CAPEX, and OPEX

KPIs are set out in Annex I to the Disclosures Del-

egated Act. The proportion of taxonomy-eligi-

ble and aligned KPIs are calculated by dividing a

numerator by a denominator. Table 23 explains

how the denominators and numerators were

derived for each KPI.

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Table 23

 – Definition of KPIs under the EU taxonomy:

Denominator

The amounts derived from the sale of products and the provision of services

after deducting sales rebates and value added tax and other taxes directly

linked to turnover.

Numerator

eligibility and

alignment

Part of the turnover in the denominator that is associated with taxonomy

eligible and aligned activities.

Denominator

The total additions to tangible and intangible assets during the financial year

are considered before depreciation, amortisation and any re-measurements.

I.e. costs that are accounted based on IAS 16 Property, plant, and equipment,

IAS 38 Intangible Assets, IAS 40 Investment Property, IAS 41 Agriculture

and IFRS 16 Leases. Financial investments, including capital injections in

associated companies and joint ventures, are excluded from the metric.

Numerator

eligibility and

alignment

Part of the CAPEX denominator that is related to assets and processes that

are associated with taxonomy eligible and aligned activities. Due to the low

revenue generated by Activity 5.1 and the complexity of allocating CAPEX

elements between refurbishment activities and regular OBU activities,

the CAPEX associated with 5.1 is assumed to be zero for both the eligible

and aligned KPI, and rather included fully in 1.2. For IAS 16 and IFRS 16,

identifying the investments allocated to the "Other" sub segment within

Connectivity is challenging, as the equipment is often shared with the other

subsegments. Therefore, a portion representing the "Other" subsegment

has been deducted from the aligned KPI. This portion is estimated based on

the revenue ratio between the "Other" subsegment and the other aligned

subsegments within Connectivity.

Denominator

Non-capitalised costs related to research and development, building

renovation measures, short-term lease, and maintenance and repair and any

other direct expenditures relating to the day-to-day servicing of assets of

property, plant and equipment that are necessary to ensure the continued and

effective functioning of such assets. All R&D related costs are capitalised and

included in the CAPEX KPI.

Numerator

eligibility and

alignment

Part of the OPEX denominator that is associated with taxonomy eligible and

aligned activities. Due to the low revenue generated by Activity 5.1 and the

complexity of allocating OPEX elements between refurbishment activities

and regular OBU activities, the OPEX associated with 5.1 is assumed to be

zero for both the eligible and aligned KPI, and rather included fully in 1.2.

For IAS 16 and IFRS 16, identifying the expenditures allocated to the "Other"

sub segment within Connectivity is challenging, as the expenditure is often

shared with the other subsegments. Therefore, a portion representing the

"Other" subsegment has been deducted from the aligned KPI. This portion is

estimated based on the revenue ratio between the "Other" subsegment and

the other aligned subsegments within Connectivity.

The KPIs under the Taxonomy are summarised in

Figure 8, and presented in detail in Table 24, 25

and 26.

Eligibility figures are somewhat different

from 2023 due to the inclusion of PIR as eligible

in 2024, while e-tolling is not considered eligi-

ble in 2024. In 2023, alignment was not reported

(not mandatory). The requirement from Annex XII

describing nuclear and fossil gas related activities

is included in Table 27.

Figure 8

 – Turnover, CAPEX and OPEX under the taxonomy:

■

Aligned

■

Eligible, but non-aligned

■

Non-eligible

Turnover

21.7%

3.2%

75.1%

CAPEX

31.7%

5.6%

62.7%

10.7%

8.9%

80.4%

OPEX

Table 24

 – Turnover KPI under the EU taxonomy:

Financial year 2024

Economic Activities (1)

Proportion of

Taxonomy-

aligned (A.1.)

or -eligible

(A.2.)

turnover,

year 2023

(18)

Category

(enabling

activity)

(19)

Category

(transitional

activity)

(20)

Text

million NOK

%

Y ; N ; N/EL

Y ; N ; N/EL

Y ; N ; N/EL

Y ; N ; N/EL

Y ; N ; N/EL

Y ; N ; N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

1.2 Manufacturing of electrical and electronic

equipment

CE 1.2

378.4

21.6%

N/EL

N/EL

N/EL

N/EL

Y

N/EL

Y

Y

Y

Y

Y

Y

Y

N/A

5.1 Repair, refurbishment and remanufacturing

CE 5.1

1.7

0.1%

N/EL

N/EL

N/EL

N/EL

Y

N/EL

Y

Y

Y

Y

Y

Y

Y

N/A

380.1

21.7%

0%

0%

0%

0%

22%

0%

Y

Y

Y

Y

Y

Y

Y

N/A

0.0

0%

0%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

N/A

E

0.0

0%

0%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

N/A

T

1.2 Manufacturing of electrical and electronic

equipment

CE 1.2

1316.0

75.1%

N/EL

N/EL

N/EL

N/EL

EL

N/EL

N/A

5.1 Repair, refurbishment and remanufacturing

CE 5.1

0.0

0%

N/EL

N/EL

N/EL

N/EL

EL

N/EL

N/A

1316.0

75.1%

0

0

0

0

75%

0

N/A

1696.1

96.8%

0

0

0

0

97%

0

N/A

55.3

3.2%

N/A

1,751.4

100%

N/A

2024

Substantial Contribution Criteria

DNSH criteria ('Does Not Significantly Harm')

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Turnover of Taxonomy-non-eligible activities

Total (A+B)

Turnover of environmentally sustainable activities

(Taxonomy-aligned) (A.1)

Of which enabling

Of which transitional

Turnover of Taxonomy-eligible activities

(A.1+A.2)

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

Turnover of Taxonomy-eligible but not environmentally

sustainable activities (not Taxonomy-aligned activities) (A.2)

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Table 25

 – CAPEX KPI under the EU taxonomy:

Financial year 2024

Economic Activities (1)

Proportion of

Taxonomy-

aligned (A.1.)

or -eligible

(A.2.) CapEx,

year 2023

(18)

Category

(enabling

activity)

(19)

Category

(transitional

activity)

(20)

Text

million NOK

%

Y ; N ; N/EL

Y ; N ; N/EL

Y ; N ; N/EL

Y ; N ; N/EL

Y ; N ; N/EL

Y ; N ; N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

1.2 Manufacturing of electrical and electronic

equipment

CE 1.2

66.4

31.7

%

N/EL

N/EL

N/EL

N/EL

Y

N/EL

Y

Y

Y

Y

Y

Y

Y

N/A

5.1 Repair, refurbishment and remanufacturing

CE 5.1

0.0

0.0%

N/EL

N/EL

N/EL

N/EL

Y

N/EL

Y

Y

Y

Y

Y

Y

Y

N/A

66.4

31.7

%

0%

0%

0%

0%

27%

0%

Y

Y

Y

Y

Y

Y

Y

N/A

0.0

0%

0%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

N/A

E

0.0

0%

0%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

N/A

T

1.2 Manufacturing of electrical and electronic

equipment

CE 1.2

131.2

62.7

%

N/EL

N/EL

N/EL

N/EL

EL

N/EL

N/A

5.1 Repair, refurbishment and remanufacturing

CE 5.1

0.0

0%

N/EL

N/EL

N/EL

N/EL

EL

N/EL

N/A

131.2

62.7

%

0

0

0

0

67%

0

N/A

197.6

94.4%

0

0

0

0

94%

0

N/A

11.7

5.6%

N/A

209.3

100%

N/A

A.1. Environmentally sustainable activities (Taxonomy-aligned)

2024

Substantial Contribution Criteria

DNSH criteria ('Does Not Significantly Harm')

A. TAXONOMY-ELIGIBLE ACTIVITIES

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

CapEx of Taxonomy-non-eligible activities

Total (A+B)

CapEx of environmentally sustainable activities (Taxonomy-

aligned) (A.1)

Of which enabling

Of which transitional

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

CapEx of Taxonomy-eligible but not environmentally

sustainable activities (not Taxonomy-aligned activities) (A.2)

CapEx of Taxonomy-eligible activities

(A.1+A.2)

CONTENTS

THIS IS NORBIT

THE BOARD OF DIRECTORS’ REPORT

FINANCIAL STATEMENTS

CONTACT

54

Sustainability

Table 26

 – OPEX KPI under the EU taxonomy:

Financial year 2024

Economic Activities (1)

Proportion of

Taxonomy-

aligned (A.1.)

or -eligible

(A.2.) OpEx,

year 2023

(18)

Category