Carasent

Investor Presentation • Nov 7, 2023

Capital Markets Day 2023

Driving efficiency and quality in the world of care

Daniel Öhman CEO

• Our story
• Carasent today
• The journey ahead

- Svein Martin Bjørnstad CFO

Block #1 Block #2

• Financial targets
• Financial development

Carasent at a Glance

Leading offering

• Driving efficiency and quality in healthcare
• Cloud-based medical record solutions
• Broad ecosystem of related tools and products

Proven financial model

• Scalable SaaS-model
• Organic and acquired growth
• Updated financial targets

Scandinavian reach

• +7 million patients visits per year in our EHRs
• ~2 million digital patient interactions per year
• +90% of all Swedes in our ecosystems
• +40,000 active users

My Carasent Story

First, I was a customer

• Experienced the increased complexity in healthcare
• Convinced of technology's transformative role in healthcare
• Used Webdoc to improve efficiency and quality

Then, I got to work with the Carasent team

• Impressed by the team, its knowledge and dedication
• Initiated a simplification strategy to reduce complexity
• Initiated a cost saving of NOK 40m and dividend and buyback of NOK 250m

Now, Carasent is entering an exciting new phase

• Building upon our leading market position
• High but efficient investments in product development
• Using robust cash reserves for value enhancing acquisitions

Multiple Structural Tailwinds

Healthcare is a non-cyclical and growing industry due to an aging population and higher demand for care

The industry is transforming in a steady but slow process of digitalization, to improve quality and cost efficiency

Healthcare is getting more complex, with regulations, internationalization and more advanced technology

Strong Foundation for Growth

Entrepreneurial spirit

Drive efficiency and increase quality of care

Cultural and legal understanding

Expertise and technology for this regulated industry

Technical prowess

Leading experience in cloud solutions

Proximity to customers

Close collaboration with strategic customer base

Successful Organic and Acquired Growth

32% Total growth LTM Q3 2023

14% Organic growth LTM Q3 2023

90% Recurring revenues LTM Q3 2023

Broad and Leading Product Portfolio

Building Business vis-à-vis Rule of 40*

*YTD figures excluding Webdoc X and HQ costs

Product (NOKm)	Revenue YTD Q3	YoY growth + EBITDA margin	Product focus
	86	31%	▪ Functionality for new segments in Sweden
	23	55%	▪ New segments ▪ Enabling research with unique data
	23	58%	▪ Continuous development
	19	36%	▪ New patient interaction platform ready for launch ▪ New modules for new segments
	11	-9%	▪ New web solution ready for launch ▪ Challenging non-compliant competitors
	11	1%	▪ New platform for compulsory tests ready for launch ▪ Cost savings
	7	-31%	▪ Convert customers to Carasent solution

Strategic Customer Base

Large healthcare providers	Independent clinics	New disruptors
• Professional tender processes • Transformation of processes • High internal complexity	• Simplicity in installations and use • Relations to nurses and doctors • Gives extensive reach	• Emphasis on user-friendliness • Built for scalability • No legacy

Ramping up Sales Efforts

Improve product and delivery

Reestablish close collaboration and relations with customers

Open new segments with development

Inbound marketing and outbound sales

Legal challenges to wrongful competition

Contribute to increasing growth step by step

• Word of mouth doesn't yield instant sales
• Sales processes with large customers can take up to 1-2 years before meaningful ARR impact

108% Net Retention*

2% Churn*

28 new Webdoc clinics in Q3

Competitive Landscape

Private EHR market Sweden – TAM NOK ~1.3bn

• Dominated by a few legacy players
• Limited product investments

EHR market Norway

• – TAM NOK ~200m (Carasent niches)
• Includes enterprise segment, rehab market, back to work rehab market
• Niched segments

Competition

• Customers' resistance to change, not other system solutions
• Mandated system for private caregivers by regions
  • o Estimated impact: ~10% of current turnover

Competition

• Attractive competitive landscape in healthcare niches – relatively protected with high barriers to entry
• Ad Opus faces more competition in work rehab vertical – which we are addressing

The European Opportunity

Rollout Scandinavian services to less mature markets

• The Nordic countries are ahead and Webdoc is the most popular system for private providers
• Webdoc X positioned for global deployment with EU compliance from the start

Carasent Capital Markets Day 2023

Germany Particularly Interesting

Rollout rationale

• Europe's largest healthcare market
• Large private healthcare market with +150k clinics
• Fragmented systems market with many old onpremises solutions
• Now open for cloud based solutions

Opening up to the cloud

• Market study completed
• Certification process initiated
• Examining M&A opportunities

Planned timeline

Acquisition customers

2024 2025 2026 Pilots Transferring existing organic growth

Certifications Commercial roll-out Material contribution to

Webdoc X

The market's most efficient cloud-based EHR system

Consolidating our expertise and knowledge into one cloud based system

Designed with the private provider in mind, an easy to use and efficient system

Adopting an ecosystem approach for easy integration and openness

Encouraging feedback from our first user, Mindler

Clear Acquisition Strategy

Acquisitions to enter new markets

• Standalone on-premises patient medical record software in new markets
• Successful transitions from on-premises to cloud-based have historically doubled revenues
• Capturing local presence and expertise

Acquisitions to boost offering and sales

• Adding new tools to Webdoc with an upselling strategy
• Expanding into new customer segments
• Strong pipeline of potential targets

Next step

• Applying insights from past acquisitions and integrations
• Priority to add presence in a new Market for Webdoc X
• Potential acquisition targets should have a proven model and sound financials

Strong foundation of mission critical solutions with minimal churn in a growing and non-cyclical industry

Capital Markets Day Svein Martin Bjørnstad CFO

November 2023

Long-term Financial Targets

• Capture organic growth opportunities
• Leverage SaaS-model and improve cost efficiency
• Enhance capital efficiency and prudent resource allocation

Average annual organic growth above 15% during 2024-2026

EBITDA-margin to reach 25% by 2026

Revenue EBITDA-margin EBITDAC-margin

EBITDAC-margin to reach 15% by 2026

• The financial targets are intended for a long-term perspective, and there will be variations between quarters
• We are executing our strategy to reach targets with our current company structure. Potential acquisitions are not included.

Track Record of Organic Growth

Target to reach an average annual organic revenue growth above 15% percent during 2024-2026

Quarterly year-over-year organic growth

Quarterly year-over-year growth in organic recurring revenue

Recurring Revenue Growth

21

Recurring growth is the key contributor to reach our target (NOKm)

Carasent – LTM Q3 Deep Dive

Webdoc – Solid Foundation for Growth

Share of revenue LTM Q3

• Robust position to take market share
• Strategic focus on sales and new functionality

Growth metrics – LTM Q3 2023
Revenue	109
YoY growth recurring	17%
Net revenue retention	111%
Churn	1%
Market share	~10%

Business Critical EHRs in Protected Niches

Share of revenue LTM Q3

• Adcuris and Metodika have strong positions in protected niches
• Ad Opus has lost market share recently

Growth metrics – LTM Q3 2023
Revenue	56	15
YoY growth recurring	10%	-4 %
Net revenue retention	109 %	93 %
Churn	2 %	13 %
Market share	~25%	~25%

Ecosystem Products – Market Leading Solutions

Share of revenue LTM Q3

• Medrave & HPI are market leaders for respective solution
• Confrere is an independent video solution for healthcare

Growth metrics – LTM Q3 2023 Revenue	1 45	2 9
YoY growth recurring	15%	-15%
Net revenue retention	114%	82%
Churn	<1%	18%

1: Growth rates shown as pro forma as Medrave and HPI were acquired in period

2: Confrere growth rates are shown based on recurring revenues Q3 2023 YoY as LTM are not comparable, number of customers shown as number of subscribers (not included in group figures)

Major Progress on Cost Level

Cash cost base Q1 versus Q3 2023

• Cost savings program completed with estimated savings of NOK 40m per year
• Decrease partly driven by seasonality due to holiday effects
• Scalable cost base with continued heavy investments in many areas

Improving Profitability

Financial target to reach 25% in EBITDA-margin and 15% EBITDAC-margin by 2026

Long-term Financial Targets Summary

Targets	2022	LTM Q3 2023	Financial target 2024-2026
Organic revenue growth	16%	14%	>15% on average
EBITDA -margin	17%	4%	25% Reaching
EBITDAC -margin	-24%	-28%	15% Reaching

• The financial targets are intended for a long-term perspective, and there will be variations between quarters
• We are executing our strategy to reach targets with our current company structure. Potential acquisitions are not included.

Strong Financial Position

Strong balance sheet

• Several steps taken to adjust capital structure
• EGM on November 14 to decide to pay out NOK 133m
• Bringing total cash distribution and share buyback to NOK 250m
• NOK 387 million cash balance end Q3, excluding proposed dividend

Sufficient resources to implement strategy

• Capital-efficient and financially prudent approach
• Attractive working capital profile
• Exploring the potential to relist to Stockholm in the coming years

Adjusted cash and uses of funds	NOKm
Cash balance end Q3 2023	637
Shareholder distribution	(250)

Adjusted cash balance end Q3 387

Uses of funds

• Market entry acquisition in Germany
• Acquisitions to add services and market reach in the Nordics

Summary

Position

• Proven SaaS-model with strong growth and retention
• Critical digital infrastructure on non-cyclical market
• Scalable platform for integrating new tools and segments

• Entrepreneurial culture with strong development capabilities

• Refocus on customers and redefined sales processes

• Increased capital efficiency through buy-back and dividends
• Increased efficiency by cost saving program
• Reduced complexity by focusing current Webdoc on Sweden

Done Journey Ahead

• Strong organic growth
• Efficient use of resources
• Launch Webdoc X
• Explore the benefits of AI

Q&A