Huddlestock Fintech

Investor Presentation • Nov 21, 2024

Q3 2024

Third quarter results presentation | November 21, 2024

Øyvind Hovland, Chairman of the Board Leif Arnold Thomas, Group CEO

Empowering modern financial services

We enable any company to launch new investment services or transform existing ones

• Revenue of NOK 16 million vs. NOK 17 million1 in Q2 2024
  • IaaS revenue increased 1 percent
  • Assets under Administration increased 5 percent
  • Reduction related to seasonality in Consultancy
• EBITDA of NOK -7 million vs. NOK -6 million in Q2 2024

  - Stable personal cost at NOK 15 million in line with Q2 2024

• Three contract expansions with effect from Q4 2024
  • Expanded IaaS-offerings to offerings to Sirius Asset Management and to existing customers in Sweden and Norway
• Technology cooperation agreement signed in Germany
• Entered into a consulting agreement with a new client in Denmark IaaS
• Successfully completed a private placement raising gross proceeds of NOK 14 million

Subsequent event

• Resignation of CFO who will remain with his responsibilities until year-end 2024 to ensure continuity, while the search for a successor is actively progressing

Q3 2024 Q3 2024 development

Assets under Administration NOKbn, EOP (IaaS KPI)

End clients Number, EOP (IaaS KPI)

^1. Restated Q2 2024 Total operating income from reported NOK 18 million to NOK 17 million 2. Restated Q2 2024 Other operating expenses from NOK 9 million to NOK 8 million

Restatements has no EBITDA-effect and no effect on reported cash flow and balance sheet.

A two-sided business model Investment-as-a-Service Consulting services

Business areas

Customized strategic and technical solutions assisting customers

improving their operations

Investment solution based on Huddlestock's own scalable technology, infrastructure, trade routing and regulatory permissions Offering

Recurring based on monthly licenses, assets under management/Administration and transaction fees Model

Multiyear relations to large multinational institutions

Our customers Financial products and services companies

Incumbents

Competitive pressures and evolving client demands rapidly evolving; New products and features, more personalization and seamless digital and hybrid experiences.

• Access to distribution network for technology
• Higher immediate revenue gains
• Higher customer acquisition costs

Startups

New investment services requires complex and resource heavy work; Acquiring licenses, developing user experiences and establishing compliance processes

• Lower immediate revenue gains
• Lower customer acquisition costs

Tapping into a large self reinforced growth market

A self-reinforced growth market

Evolving preferences

• Thematic (example ESG)

• Digital first solutions

• Enhancing existing offerings

• Building adjacent services
• Disruptive new services

Investors served through customers

Assets under Administration

NOK bn under management

Continued focus on organic IaaS growth

Quarterly IaaS revenue development and drivers

2024, NOK million

• Seasonally high revenue in the first quarter due to tax-reporting
  • Underlying revenue growth due to growth in Assets under Administration

• -5% organic growth from Q1'24 to Q2'241

• +1% organic growth from Q2'24 to Q3'24
• Growth in revenues due to growth in Assets under Administration Variable components
  • Positive effect from expansion contracts in Q4'24
    • Expanded IaaS-offerings to Sirius Asset Management and to existing customers in Sweden and Norway in the third quarter 2024
  • Assessing strategic response to accelerate new sales, up sale and cross selling

Recap of priorities in the second half 2024

Added support around Norwegian Share Savings Account (ASK)

Full tax handling and reporting in Norway

Elevated automation for fund trading and currency exchange

Migration of more Norwegian customers to the IaaS-platform

Expansion of real time equity trading / investing capabilities

Progress in the third quarter

• Expanded functionality in managed portfolios, offering financial advisors better flexibility for allocating new cash contributions
• Improved user interfaces around financial advisory

i

• Extended support for payment integrations with banks
• Upgraded customization for managing subscriptions to provide better control over share issuance • The successful capital raise, demonstrated Huddlestock's ability to
• Released new APIs to strengthen system integration and functionality
• Huddlestock utilized its own system to automate the capital raise conducted the third quarter
• automate the process, reduce errors and minimize manual work

Tradevest cooperation in Germany holds potential for market entry

Working on combined technology offering in the German market

1. F5IT (Huddlestock Solutions) divested in 2023

Continued profitable and stable Consultancy business

• New customer announced in August, based on a combined sales efforts between IaaS and Consulting
• 44.3 • Seasonal effects in third quarters impacting Consulting with limited billable hours during summer holidays in July
  • Launch of new website in the third quarter:

Financial review

Stabilized operational expenses – unsatisfactory revenue development

Profit and loss

1. Reported NOK 18.4 million (Difference to restated NOK 1.0 million) 2. Reported NOK -9.1 million (Difference to restated NOK -1.0 million)
Net result	-19.8	-18.8	-25.8
Result before tax	-20.6	-18.6	-26.6
Net financial items	-1.4	-0.8	-1.3
EBIT	-19.2	-17.8	-25.3
Depreciation, impairment and amortisation	-12.4	-12.2	-21.2
EBITDA	-6.9	-5.6	-4.2
Other operating expenses	-7.7	2 -8.1	-7.7
Personnel costs	-14.7	-14.8	-21.5
Cost of materials/subcontractors	0.0	-0.1	8.4
Total operating income	15.5	17.41	16.6
	Q3 2024	Q2 2024 restated	Q3 2023

• Challenging revenue performance
  • Investment as a service income increased 1 per cent compared to Q2 2024 due to growth in AuA
• Reduction compared to previous quarter mainly reflecting seasonality in consulting business due to summer vacation in July • NOK 0,4 million reduction in Other operating
• Personnel costs stable at NOK 15 million compared to Q2 2024
• expenses compared to Q2 2024
• EBITDA of negative NOK 7 million
• Net result of negative NOK 20 million

Third quarter cash flow

• Cash flow from operations reflects a profitable Consultancy business and an IaaS-business with high growth potential
• Investments represents net additions in intangible assets related to technology development
• Financing reflects proceeds from private placement in September, obtained loans and repaid loans
• Cash position of NOK 10 million at period-end does not reflect the total proceeds from the private placement in September, as NOK 4.3 million of the proceeds were received in October
• Ongoing work to identify potential financing partners to support strategy including non-organic growth

Summary and outlook

Building on a unique market position The only complete Investment as a Service offering

• Continued profitable consultancy business
• Unlocking growth in Investment-as-a-service (IaaS) business through technology and platform integration
• Pursuing accelerated market entry into Germany
• Short-term ambition to become EBITDA-positive
  • Focus on recurring 'Investment as a service'-sales
  • Enhance sales efforts in existing sales organization
  • Continue to grow professional services business
  • Increase efficiency and enhance structures
  • Cost control and cost reduction
• Ongoing work to identify potential financing partners to support strategy including non-organic growth

Q&A

Øyvind Hovland Chairman of the Board

Leif Arnold Thomas CEO

Appendix

Consolidated income statement

Consolidated income statement
Unaudited in NOK, including reported and restated figures
	Q3 2024	Q2 2024	Q2 2024	QoQ	Q3 2023	YoY	9M2024	9M2023	YoY
		actual	reported
Operating income
Other operating income Total operating income	15,538,083 15,538,083	17,374,698 17,374,698	18,392,8981 18,392,8981	-16 % -16 %	16,619,802 16,619,802	-13 % -13 %	53,526,140 53,526,140	62,590,924 62,590,924	-14 % -14 %
Operating expenses Cost of materials/subcontractors	0	-86,425	-86,425	-100 %	8,445,606	-100 %	0	-3,175,982	-100 %
Personnel costs	-14,694,738	-14,780,517	-14,780,517	-1 %	-21,505,123	-32 %	-46,594,620	-56,738,487	-18 %
Other operating expenses	-7,697,895	-8,092,947	-9,111,1472	-16 %	-7,735,723	-14 %	-23,162,459	-11,045,195	110 %
Total operating expenses	-22,392,633	-22,959,888	-23,978,0882	-7 %	-20,795,241	-145 %	-69,757,079	-70,959,664	-2 %
EBITDA	-6,854,550	-5,585,190	-5,585,190	23 %	-4,175,439	64 %	-16,230,939	-8,368,740	94 %
Depreciation, impairment and amortisation	-12,360,865	-12,208,453	-12,208,453	1 %	-21,161,496	-42 %	-36,542,193	-35,358,668	3 %
EBIT	-19,215,415	-17,793,644	-17,793,644	8 %	-25,336,935	-24 %	-52,773,132	-43,727,408	21 %
Financial income
Interest income	39,196	819	819	4685 %	105,872	0 %	52,271	115,477	-55 %
Other financial income	27,537	190,690	190,690	-86 %	91,009	-70 %	273,401	239,823	14 %
Total financial income	66,733	191,509	191,509	-65 %	196,881	-66 %	325,673	355,300	-8 %
Financial expenses
Interest expenses	-1,070,803	-875,576	-875,576	22 %	-644,683	66 %	-2,506,735	-1,265,943	98 %
	-385,244	-112,165	-112,165	243 %	-854,193 -1,498,876	-55 %	-569,540	-1,321,557	-57 % 19 %
Other financial expenses				47 %		-3 %	-3,076,275	-2,587,500
Total financial expenses	-1,456,046	-987,741	-987,741
Net financial items	-1,389,314	-796,231	-796,231	74 %	-1,301,995	7 %	-2,750,602	-2,232,200	23 %
Result before tax	-20,604,729	-18,589,875	-18,589,875	11 %	-26,638,929	-23 %	-55,523,735	-45,959,607	21 %
Income tax Net result	803,041 -19,801,688	-228,950 -18,818,825	-228,950 -18,818,825	-451 % 5 %	877,980 -25,760,950	-9 % -23 %	525,785 -54,997,950	748,659 -45,210,948	-30 % 22 %

1. Restated Q2 2024 Total operating income from reported NOK 18 million to NOK 17 million

2. Restated Q2 2024 Other operating expenses from NOK 9 million to NOK 8 million

Restatements has no EBITDA-effect and no effect on reported cash flow and balance sheet.

Consolidated statement of financial position

Unaudited in NOK
	30.09.2024	31.12.2023
Non-current assets
Intangible assets
Research and development	53,880,950	58,138,522
Goodwill Technology	109,055,779 15,516,568	116,449,291 18,515,698
Customer contracts and relations	9,584,986	14,171,778
Licenses	22,892,656	28,469,988
Total intangible assets	210,930,939	235,745,276
Fixed assets
Investment in subsidiaries	0	0
Loan to group companies	0	0
Investment in equities Property, plant & equipment	354,018 175,178	322,719 199,483
Total fixed assets	529,195	522,201
Total non-current assets	211,460,135	236,267,478
Current assets
Receivables	0	0
Trade receivables	13,459,104	11,347,040
Other short-term receivables	5,526,043	5,952,937
Total receivables	18,985,147	17,299,977
Bank deposits, cash and cash equivalents	10,481,523	10,183,903
Total current assets	29,466,670	27,483,880
Total assets	240,926,804	263,751,358

30.09.2024	31.12.2023		30.09.2024	31.12.2023
		Equity
		Paid-in capital
		Share capital	362,215	350,957
		Own shares	-14	-5,335
		Other paid-in capital	0	0
		Capital increase not registered	14,155,900	13,561,756
		Share premium	193,927,505	180,377,457
		Total paid-in capital	208,445,607	194,284,835
		Other equity
		Capital Reserves	0	0
		Other equity	-88,332,038	-38,548,773
		Total other equity	-88,332,038	-38,548,773
		Total equity	120,113,569	155,736,062
		Liabilities
		Long-term liabilities
		Other long-term liabilities	11,140,385	675,778
		Deferred tax	6,310,675	8,144,578
		Total long-term liabilities	17,451,060	8,820,356
		Short-term liabilities
		Accounts payable	2,553,359	6,661,053
		Payroll taxes, VAT etc.	9,848,566	8,422,709
		Loans and borrowings	28,654,851	19,336,874
		Other short-term liabilities	62,305,399	64,774,304
		Total short-term liabilities	103,362,175	99,194,940
		Total liabilities	120,813,235	108,015,296
		Total equity and liabilities	240,926,804	263,751,358

Consolidated statement of cash flows

Consolidated statement of cash flows
Unaudited in NOK
	Q3 2024	Q2 2024	YTD 2024	YTD 2023	2023
Profit/loss before tax	-20,604,729	-18,589,875	-55,523,735	-45,959,607	-87,129,435
Depreciation and amortisation	12,360,865	12,208,453	36,542,193	35,358,668	63,973,602
Changes to accounts receivable	-330,735	1,581,124	-2,112,064	-4,088,135	-527,235
	-328,684	-184,737	-4,107,694	-1,403,957	-2,870,269
Changes to accounts payable Changes to other accruals and prepayments Net cash flow from operating activities from continuing operations	-557,595 -9,460,877	-460,176 -5,445,211	3,247,390 -21,953,910	2,430,809 -13,662,222	2,724,101 -23,829,236
Net additions intangible assets & Property, plant & equipment	-3,107,667	-2,987,905	-8,509,247	-17,206,038	-51,045,929
Aquisition/sale of subsidiaries, net of cash aquired Net cash flow from investment activities from continuing operations	0 -3,107,667	0 -2,987,905	0 -8,509,247	11,020,081 -6,185,957	41,608,429 -9,437,501
Proceeds from capital increase	9,901,298	0	9,901,298	5,000,000	22,500,000
Costs of capital increase	0	0	0	0	0
Treasury shares	0	1,660,000	1,660,000	5,944,162	6,307,579
Loans obtained	4,441,229	7,033,111	21,233,253	12,531,000	12,531,000
Repayment of loans	-1,143,970	-305,652	-2,033,774	0	0
Net cash flow from financing activities from continuing operations	13,198,557	8,387,459	30,760,777	23,475,162	41,338,579
Net changes to cash and cash equivalents from continuing operations	630,013	-45,657	297,619	3,626,983	8,071,843
Bank deposits, cash and cash equivalents start of period	9,851,510	9,897,167	10,183,903	2,903,838	2,903,838

Disclaimer 1/2

This presentation has been prepared by Huddlestock Fintech AS (the Huddlestock) solely for the use at the presentations to investors held in connection with the presentation of the past results of the certain period and anticipated future performance. This presentation is being made only to, and is only directed at, person to whom such presentation may lawfully be communicated (Recipients). Any person who is not a Recipient should not act or rely on this presentation or any of its contents. This presentation is provided to the Recipients for information purposes only. This presentation is strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person. 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Disclaimer 2/2

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Huddlestock Fintech AS Kanalsletta 2, 4033 4005 Stavanger Norway