REPORT FOR 4TH QUARTER 2013

Sale of a subsidiary and major contract

As part of the continued restructuring of the 
company, Blom have signed an agreement to sell the 
subsidiary Blom Romania. The sale contributes to a 
more focused operation and reduced exposure. Blom has 
concentrated on developing new business areas based 
on the company's core competence. The company is 
satisfied that it has signed a two-year contract for 
the delivery of airborne remote sensor services for 
ice monitoring in northern waters. This contract 
award in combination with the conversion of interest-
bearing bond debt, provide the company with a good 
foundation for long-term, profitable growth.

The company reported revenues of NOK 52 million in 
the 4th quarter, compared with NOK 61 million for the 
same quarter in 2012. EBITDA for the quarter was NOK 
16 million, compared with NOK 13 million for the 
corresponding quarter in 2012. This corresponds to an 
EBITDA margin of 30.8 per cent, compared with 22.0 
per cent in the 4th quarter of 2012. The operating 
loss for the quarter was NOK 7 million, compared with 
an operating profit of NOK 3 million for the same 
period in 2012. The pre-tax loss was NOK 9 million, 
compared with a pre-tax loss of NOK 5 million for the 
corresponding quarter in 2012.

The company's revenues for 2013 totalled NOK 265 
million, compared with NOK 265 million in 2012. 
EBITDA for 2013 was NOK 32 million, compared with NOK 
49 million in 2012. This corresponds to an EBITDA 
margin of 12.3 per cent for 2013, compared with 18.7 
per cent in 2012. The operating loss for 2013 was NOK 
55 million, compared with an operating profit of NOK 
12 million in 2012. The pre-tax loss was NOK 64 
million, compared with NOK 20 million for the 
corresponding period in 2012.

Individual transactions resulting from extensive 
restructuring have had a significant impact on the 
results for the 4th quarters of 2013 and 2012, as 
well as the full years 2013 and 2012. This applies to 
substantial costs related to write-downs, as well as 
revenues related to the sale of businesses and the 
conversion of bond debt.

Despite the substantial restructuring over the last 
two years, the company will continue its efforts to 
adapt its structure, cost base and product portfolio 
in order to improve the company's earning capacity. 
The company will continue to implement measures to 
develop business opportunities in markets where the 
company's competence can be exposed to a better risk 
and reward profile.

As at 31 December 2013, the company can present a 
satisfactory balance sheet after the conversion of 
bond debt and extensive write-down of company assets, 
including a full write-down of intangible assets. The 
company's equity ratio is 29 per cent and the current 
ratio has also been significantly improved.

A new Board of Directors and shareholder structure 
with confidence in the company's competence and 
opportunities is a strong motivation for the 
company's employees.

For further information please contact the CEO, Dirk 
Blaauw, on tel. +47 22 13 19 20.