27 September 2022 - The first half of 2022 marked the start of a new chapter for
Elop, with a revision of the company's strategy launched in June. The result is
that Elop, in addition to being a technology provider, has moved into adjacent
segments across the value chain, including construction, maintenance and
inspection of infrastructure.
 
Following the divestment of Simplifai as well as closing of two acquisitions in
the third quarter, Elop reconfirms their ambition to become cash positive in
2023. 

"We are in a good place financially, which coupled with a much more diversified
business, including new profit-making entities, put us in a good place. We
therefore retain our ambition of delivering cash positive operations in 2023,"
adds Øivind Horpestad. 

PRO-FORMA FINANCIALS:
Elop delivered pro-forma revenues of NOK 95 million in H1 2022. Including the
recently acquired companies Nordic Infrastructure Group and Hadeland Elektro and
excluding Simplifai. Elop expects full-year 2022 pro-forma revenues to reach NOK
208 million. As of 30 June 2022, Elop had a pro-forma order backlog of NOK 175
million. 
Pro-forma EBIT for H2 2022 is expected to be negative NOK 9 million, including
positive EBIT contribution from Nordic Infrastructure Group and Hadeland Elektro
(11 million) but negative results in Elop AS/Elop Technology. Elop expects a
full-year pro-forma EBIT of approximately NOK -26 million. 

FINANCIAL RESULTS: ELOP AS
For H1 2022, Elop AS, excluding Simplifai, had revenues of NOK 0.8 million and
EBIT of -23.9 million. Cash balance as of 30 June 2022 was NOK 56.3 million,
excluding the cash settlement of NOK 86m from the Simplifai transaction. 
Including this settlement, cash balance was NOK 144 million. In addition, Elop
will receive another NOK 50 million from the sale of Simplifai within 30 months
from closing. This excludes the cash in Hadeland Elektro and Nordic
Infrastructure Group. 

"The Elop Board saw the worrying signals in the financial market back in 2021,
when I was asked to step in as CEO, and the Board took some important decisions
in the beginning of this year - going forward we could no longer rely on the
capital market in order to secure funding to execute Elop's strategy - the risk
would be too high for our shareholders. We decided to turn our focus from being
a pure R&D Tech company with a huge future commercial potential, but with future
funding needs, to become an Infrastructure specialist taking on a bigger part of
the value chain to become a profitable business. To finance this, we divested
Simplifai in H1 this year. Despite selling Simplifai, the huge potential of our
core Elop Technology is still alive