Cyviz AS

Investor Presentation • Feb 8, 2024

4th Quarter Results 2023

Today's Agenda and Presenters

Q4'23 in brief

Performance 2020-2023

Business highlights

Q4 and YTD financials

Outlook

Q&A

Espen Gylvik CEO

Karl Peter Gombrii CFO

All-time high order intake and a strong year-end for revenue and EBITDA

Q4'23 in brief

Revenue of NOK 168 million in Q4, down 6.6% compared to last year.

Full-year revenue of NOK 585 million, up NOK 99 million (20%).

Gross profit of NOK 88.3 million equivalent to 52.5% margin.

Full-year gross profit of NOK 289 million, up NOK 69 million (31%).

EBITDA of NOK 20.1 million in Q4, up NOK 2.5 million vs. last year

Full-year EBITDA of NOK 28 million, up NOK 19 million (208%).

Order intake of NOK 383.5 million, up 169% compared to Q4 2022.

Full-year order intake of NOK 757 million, up 169 million (29%).

ROLLING 12-MONTHS TREND 2020-2023

Cyviz Group

Business Highlights

Business Highlights

Q4 2023

-

ORDER INTAKE BY VERTICALS – Q4 ORDER INTAKE BY REGION – Q4

Business Highlights

Full-Year 2023

-

36%

Middle East

Q4 & Full-Year Financials

Financial highlights

Revenues

• 6,6% decline from Q4 2022
• Rolling 12-months trend at NOK 585 million versus NOK 486 million in Q4 2022 (+21%)

Gross profit

• 52.5% gross margin for the quarter
• Rolling 12-months trend at NOK 289 million versus NOK 220 million in Q4 2022 (+31%)

EBITDA

• NOK 2.5 million increase compared to 2022
• Rolling 12-months trend at NOK 27.9 million after Q4 compared to NOK 9.1 million after Q4 2022

Bookings

• Up NOK 241m compared to same quarter last year driven by the NOK 180-200m deal booked in December 2023

Full-year results 2023

Revenues

• NOK 99 million revenue growth (+20%)
• CAGR 39% from 2020

Gross profit

• NOK 69 million growth (+31%)
• Gross margin 49.3% vs 45.3% last year
• CAGR 42% from 2020

EBITDA

• NOK 19 million growth (+208%)
• Margin of 4.8% vs 1.9% last year

Bookings

• NOK 168 million increase (+29%)
• CAGR 62% from 2020

Operating cash flow

Operating cash flow Q4

Operating cash flow full-year '23

Key drivers Q4

• Operating profit of NOK 14.1 million driven by positive EBITDA of NOK 20.1 million
• Short-term increase in AR with impact of 3.1m.
• Increase in AP of NOK 5.4 million
• Decrease in inventories of NOK 10 million – partially driven by a one-off effect related to a more conservative approach to obsolescence (correspondingly negative effect on EBT)

Key drivers FY '23

• Operating profit of NOK 4.6 million compared to NOK -11.0 million same period last year
• Negative cash flow driven by increase in receivables and reduction in payables with total negative effect of NOK 48.9 million

Solid February cash headroom anticipated

• Positive Free Cash Flow of NOK 17.8 million in Q4 and reduced draw on RCF vs Q3
• RCF limit increased from NOK 49.5 million to NOK 60.0 million
• Confirmed payment of major receivable next week
• Anticipate to finalize a USD 3.5 million Letter of Credit with strategic partner in ME in Q1

* Net Working Capital only includes Accounts Receivable and Accounts Payable and excludes other short-term assets (inventories, unbilled revenue (WIP)) and short-term liabilities (customer prepayments, accruals and RCF draw) ** Overdue ME shows actual overdue receivables from ME as of February 6th which would have been converted to cash with a LC in place. It is a theoretical exercise only intended to give a directional idea of what the Cash Headroom could like with an LC

Seasonal bookings trends 2020-2023

• Most of the booking growth and build-up of backlog over time has come in the 2H
• This trend is likely going to continue into 2024
• Trend exacerbated by larger-than-usual order intake in Q4

Outlook

Outlook

Profitable growth driven by growing core business, new products and services, and cost optimization

Profitable growth

Increased focus on profitability through cost optimization, new services and continued revenue growth. Maintaining the medium-term 15-20% EBITDA-margin

Growing demand for advanced collaboration solutions

Expect an increase in demand within private enterprise sector for 2024

Increased focus on cash management

Improve financial headroom by further leveraging trade finance solutions, tighter receivable collection, and implementing enhanced contractual terms and conditions.

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