ECIT AS

Quarterly Report • Nov 17, 2022

Interim Report Q3 2022

Q3 2022 - comments

Highlights

• Revenue at NOK 672 million (557) with a revenue growth at 20.8% (35.6%). Organic growth at 11.5% (7.9%) and M&A growth at 10.9% (28.5%).
• Organic revenue above last year in all divisions with the IT division as the main contributor.
• EBITDA at NOK 99 million (80) with a margin at 14.7% (14.4%).
• End November 2022 acquired yearly revenue represents appr. NOK 260 million with six investments in companies done after 30th June 2022.
• Free cash flow amounts to NOK 78 million (34).
• Earnings per share improved to NOK 0.04 from NOK 0.03.
• Still the organisation is absorbing effects from the (four) large mergers made in previous quarters.

	Q3	Q3		YTD	YTD
(NOKm)	2022	2021	Growth	2022	2021	Growth
Revenue	672	557	20.8%	2,115	1,735	21.9%
EBITDA	99	80	22.6%	283	226	24.9%
EBIT	55	36	51.2%	146	106	37.7%
Profit for period the	33	25	32.7%	97	76	26.6%
Free cash flow	78	34	125.7%	173	118	46.7%
Adjusted diluted EPS	0.04	0.03	23.5%	0.13	0.10	28.2%
Total revenue growth	20.8%	35.6%	-14.8 p.p.	21.9%	33.6%	-11.7 p.p.
Organic revenue growth	11.5%	7.9%	3.6 p.p.	9.3%	6.8%	2.5 p.p.
revenue growth M&A	10.9%	28.5%	-17.6 p.p.	14.1%	28.7%	-14.6 p.p.
EBITDA-margin	14.7%	14.4%	0.3 p.p.	13.4%	13.0%	0.4 p.p.

Notes:

EBITDA & EBIT before special items

Profit for the period adjusted for one-off items

Free cash flow = Cash flow from operating activities less IFRS16 leases and before investment in new subsidiaries, investments in software and special items Earnings per share adjusted for one-off items

Management report

Financial performance

Building the organisation through acquisitions and consolidation as the strategy for ECIT is gradually showing results through organic growth and margin improvement.

Revenue growth at 21.9% (33.6%) with a revenue at NOK 2,115 million (1,735). Organic growth at 9.3% (6.8%) and acquired growth at 14.1% (28.7%). Currency effects affected growth by minus 1.5% (minus 1.9%).

EBITDA at NOK 283 million (NOK 226 million) with a margin at 13.4% (13.0%). EBIT at NOK 146 million (106) an increase of 37.7% compared to last year.

Free cash flow at NOK 173 million (118). However last year's figure would have been NOK 151 million if adjusted for Covid-19.

The overall positive development in Q2 2022 continued into Q3.

The F&A division has improved organic revenue growth for the quarter and is ahead compared to last year YTD as well.

Continued good demand and few larger orders completed in September lifted the organic growth rate in the IT division to a higher level in Q3. YTD there has been a stable demand for IT services and IT-solutions across all countries.

Although the overall supply constraints on IT hardware have eased, there are still delivery challenges on certain hardware items.

With 69.8% (47.1%), the Tech division continues to deliver good revenue growth. The growth results are coming partly from implementation of ECIT-owned software and partly from external demand for the solutions and services offered by the division.

The impact of cost inflation on the financial development in ECIT has so far been limited. However, effects are to be expected and mitigating actions towards inflation (margin defending) is high on the management agenda.

Management considers the margin development acceptable as performance throughout the year has been affected by four large mergers completed in previous quarters. Gradually, the organisation absorbs the effects from the mergers with a stronger and more consolidated organisation as the result.

Adjusted profit for the period ended at NOK 97 million (76); Profit for the period has been adjusted for two minor divestments completed during the year, representing a gain of NOK ~25 million.

Adjusted for one-off items, diluted EPS for the first nine month of the year ended at NOK 0.13 compared to NOK 0.10 last year – the increase can be explained by a combination of increased profit for the period and a higher majority share of ownership.

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INTERIM REPORT Q3 2022

the last quarter, the net working capital was higher than usual because of a difference in the timing of invoicing. Cash was collected during Q3 2022, which explains the positive networking capital development compared to last year.

The development in net working capital performance measured year-to-date is now in line with management expectations.

End Q3 2022 ECIT had a net interest-bearing debt at NOK 215 million (125). The financial gearing ratio (NIBD/EBITDA) is at 0.6x (0.4x) below the ratio limit at 2.5 X NIBD/EBITDA.

Increasing the average ownership share in subsidiaries by partly exercising the options to acquire minority shares is ongoing. By Q3 2022, the ownership share was at 67.9%. The ownership share will fluctuate affected by acquisitions.

Management considers the financial performance for the first nine months of 2022 to be in line with expectations.

M&A activities

Four companies were acquired during Q3, including Tandem AS, Auto-Flow ApS, Verismo Systems AB, and Prosys ApS. Together they represent an acquired annualised revenue of NOK ~68 million.

Besides the four acquisitions completed in Q3, two more companies were acquired in October and November; Intunor Services AS and Argus Kreditt AS.

The largest of the two, Intunor Services AS ('Intunor'), is a Norwegian F&A company - including subsidiaries - with some 135 employees and 2021 revenue at NOK ~129 million. The acquisition of Intunor will strengthen the geographical presence, industry position, and competence base in ECIT.

Argus Kreditt AS offers services within debt collection, invoice administration and advisory connected to credit management. The acquisitions of Argus Kreditt AS will strengthen the existing services ECIT offers to its customers. In 2021 the company reported NOK 7 million in revenue and 5 employees.

Acquired revenue as of November represents appr. NOK 260 million in annualised revenue.

New management structure

ECIT Group is structured in three divisions; F&A, IT and Tech, with support functions organised at group level.

To strengthen business development and financial performance a decision has been taken to appoint a Managing Director to be responsible for each of the three divisions. All the appointed division responsible managing directors are coming from and has a longer history with the ECIT organisation.

Share buyback program

The share buyback program initiated at the 23rd August 2022 has been completed.

As the program ended the 16th November 2022 a total of 1,204,672 shares have been bought at an average price of NOK 6.64.

A new share buyback program has been announced and will run from 17th November 2022 until, at the latest, 22nd December 2022.

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During this period ECIT AS will buy treasury shares up to a maximum of NOK 4 million.

A company announcement of all transactions under the programme will be published every week after commencement and at the end of the program.

The purpose of the share buyback programs is to acquire shares that could be used as a settlement in the ECITs incentive plan. Furthermore, shares acquired under the program may be applied as a partial settlement measure in ECITs acquisitions of companies and general corporate purposes.

Incentive scheme

A new share-based incentive scheme was announced in August 2022. The purpose of the programme is to reward longtime performance and loyalty towards ECIT.

The incentive scheme is being initiated as planned.

Financial Highlights

	Q3	Q3	YTD	YTD		Q3	Q3	YTD	YTD
(NOKm)	2022	2021	2022	2021	(NOKm)	2022	2021	2022	2021
Condensed Statement Income					Key figures
Revenue	672	557	2,115	1,735	Total revenue growth, %	20.8%	35.6%	21.9%	33.6%
EBITDA	99	80	283	226	Total organic revenue growth, %	11.5%	7.9%	9.3%	6.8%
EBIT	55	36	146	106	Total M&A revenue growth, %	10.9%	28.5%	14.1%	28.7%
Special items, net	-2	0	-11	-8	EBITDA margin, %	14.7%	14.4%	13.4%	13.0%
Financial items, net	6	-1	7	-12	Effective tax rate, %	22.6%	28.6%	22.4%	25.3%
Profit for the period	45	25	110	64	in % of CAPEX revenue	0.8%	0.8%	0.6%	0.9%
Adjusted profit for the period	33	25	97	76	in % of R&D revenue	1.7%	0.8%	1.7%	0.7%
Attributeable to ECIT AS' shareholders	17	14	59	42	Recurring repeat revenue share &	79%	74%	77%	72%
Attributeable to minorities	16	11	38	34	Proforma revenue	673	587	2,157	1,846
					Proforma EBITDA, last 12 months			407	333
Financial position					majority % Avg. share,			67.9%	64.1%
Total assets			2,772	2,498	ratio, % Solvency			54.1%	56.1%
of equity ECIT shareholdes' share			1,264	1,204
Non-controlling interest			234	197	figures Stock-related key
working capital Net			-77	-98	Adjusted diluted EPS, NOK	0.04	0.03	0.13	0.10
interest-bearing debt (NIBD) Net			231	125	Total number of shares issued ('000)			452,050	442,224
debt (Gearing ratio) Net to EBITDA			0.6x	0.4x	Total number of shares ('000) treasury			1,850	1,868
Cash Flow					ESG data
Operating activities	102	59	241	186	Employees (FTE)			2,240	2,185
Adjusted free cash flow	78	34	173	118	Gender diversity (F/M)			58/42	58/42
Investing activities	-90	-64	-223	-293	Gender diversity, managerial (F/M)			46/54	48/52
Financing activities	-41	-137	-79	116	Employee engagement score (EES)			83	80
Cash flow for the period	-28	-142	-61	8

ECIT Performance

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INTERIM REPORT Q3 2022

Financial Review – Group Performance

EBITDA & Margin

Adjusted profit for the period

Results for the first nine months

Revenue

For the first nine months of 2022, revenue amounted to NOK 2,115 million compared to NOK 1,735 million in 2021, representing total growth of 21.9% (33.6%), of which 9.3% was organic growth (6.8%).

The M&A growth represents 14.1% (28.7%). The M&A growth may fluctuate year-on-year as a consequence of when acquisitions are completed during the year. The Norian Group acquisition in April 2021 mainly explains the higher growth last year.

The impact of the development in foreign exchange rates was minus 1.5% for 2022 (minus 1.9%).

Norway is the largest market ECIT operates in and represents approx. 67% (64%) of the total revenue in 2022. The second-largest market is Sweden representing approx. 16% in 2022 compared to 15% last year. Further geographical and division disclosures in section 2.1.

Revenue for the year per division compared to the same period last year is specified below. All operational divisions delivered positive revenue growth.

(NOKm) Revenue	YTD 2022	YTD 2021
division F&A	1,133	982
division IT	953	780
Tech division	116	68
Group eliminations &	-87	-95
Total	2,115	1,735

EBITDA before special items

EBITDA for the period amounted to NOK 283 million compared to NOK 226 million last year, representing an increase of 24.9%.

EBITDA per division compared to last year's period is specified below.

EBITDA (NOKm)	YTD 2022	YTD 2021
division F&A	185	162
division IT	112	84
Tech division	0	-6
Group eliminations &	-14	-14
Total	283	226

Special items

Special items consist of costs that, by nature, are unrelated to the Group's ordinary operations.

Special items incurred in the first nine months consist mainly of acquisition-related transaction costs. Special item costs amount to NOK 11 million compared to NOK 8 million last year.

Amortisations and depreciations

The amortisation and depreciation for 2022 amount to NOK 137 million compared to NOK 120 million for the same period last year. The increase in amortisation and depreciation comes from acquired companies, increasing amortisations on customer contracts.

Financial items

The financial items totalled a net income of NOK 7 million for the first nine months of 2022 compared to a net financial expense of NOK 12 million last year.

Net income comprises mainly a gain of NOK ~25 million related to the divestment of the associated company, 'Cloud Connection AS', and the F&A subsidiary, 'ECIT Invent AS'. Interest expenses are higher than in 2021 due to increased external financing and higher interest rates.

(NOKm)	YTD 2022	YTD 2021
Financial income:
Interest income	7	1
Exchange rate income	4	8
Profit on disposal of
associated company	25	0
from associated Income
companies	1	0
financial income Other	0	3
Total financial income	37	12
Financial expenses:
Interest expenses	-21	-9
Exchange rate expenses	-8	-9
IPO expenses	0	-4
financial Other expenses	-1	-2
Total financial expenses	-30	-24
Financial items, net	7	-12

Tax on profit for the period

The effective tax rate for the first nine months of 2022 is 22.4% (2021: 25.3%). The lower effective tax-rate in 2022 can be explained by the non-taxable gain coming from divestments.

Profit for the period

Profit for the first nine months was NOK 110 million (NOK 64 million).

Profit for the period is mainly impacted by the gain from the divestment of the associated company' Cloud Connection AS' and the F&A subsidiary 'ECIT Invent AS'.

An adjusted profit for the period has been made to illustrate the impact of the one-off items.

YTD 2022	YTD 2021
110	64
11	8
-25	0
0	4
97	76
59	42
38	34
60.5%	55.5%
39.5%	44.5%

Compared to our average ownership measured at revenue and EBITDA of 67.9% on 30th September 2022 (64.1%), the majority ownership measured at the adjusted profit of the period is 60.5% (55.5%). The development to last year can mainly be explained by option agreements exercised during the previous 12 months.

Diluted adjusted earnings per share

The improvement in earnings per share compared to last year can be explained by a combination of increased profit for the period and a higher majority share of ownership.

Adjusted earnings per share last twelve months show an increase of 55.4%. The growth comes from the increase in ownership; hence the majority share of adjusted profit for the previous twelve months equals 53.1% (43.2%).

(NOKm)	YTD 2022	YTD 2021
Profit of the period	110	64
Shareholders in ECIT AS	65	30
Non-controlling interests	45	34
Adjusted profit of the period	97	76
Shareholders in ECIT AS	59	42
Non-controlling interests	38	34
('000 shares)
number of shares Average of Average number treasury	448,753	415,615
shares	-1,514	-4,918
Diluted of average number
shares in cirkulation	447,238	410,697
(NOK 1)
EPS	0.14	0.07
Diluted EPS	0.15	0.07
Adjusted EPS	0.13	0.10
Adjusted diluted EPS	0.13	0.10
(NOK 1)
Adjusted EPS, LTM	0.18	0.11
Adjusted diluted EPS, LTM	0.18	0.12

Cash flow & Net working capital

Cash flow summary

(NOKm)	YTD 2022	YTD 2021
Cash flow from operations Cash flow from investing flow from financing Cash	241 -223 -79	186 -293 116
Cash flow for the period	-61	8
Cash flow from operations	241	186
Special items	11	8
Net investments in tangible total assets,	-13	-15
of liabilities Repayment lease	-66	-61
Free cash flow	173	118

Cash flow from operating activities in the first nine months of 2022 represents NOK 241 million compared to NOK 186 million last year.

The development to last year can be explained by improved operating performance and improved net working capital.

Cash flow from investing activities represents an outflow of NOK 223 million (NOK 293 million).

Acquired subsidiaries are the most significant component in cash flow from investing activities, amounting to NOK 161 million compared to NOK 264 million last year. The acquisition of Norian Group in April 2021 is the main explanation behind the higher amount last year.

Investing activities are expected to increase in Q4 2022 because of the acquisition of Intunor Services AS in November.

On 30th September 2022, the cash flow from operating activities of NOK 241 million covered our total investing activities of NOK -223 million.

Cash flow from financing activities ended at a cash outflow of NOK 79 million compared to a positive NOK 116 million last year. The main explanation for last year's balance is the capital increase made as part of the listing of ECIT in May (representing NOK 382 million).

Free cash flow (cash flow from operations less investments in tangible assets & IFRS 16 leases and before special items) is NOK 173 million compared to NOK 118 million last year, which corresponds to a growth of 46.7%.

Thus, last year's figures would have been at NOK 151 million if adjusted for Covid-19 since most prolonged payments were paid during 2021.

Net working capital

Changes in net working capital for the first nine months of 2022 ended at positive NOK 14 million compared to negative NOK 2 million last year. Last year's figures would have been NOK 31 million if adjusted for Covid-19.

Change in NWC (NOKm)	YTD 2022	YTD 2021
receivables Accounts	-4	12
Accounts payable Covid-19 Delayed payments,	7 -1	-19 -33
Other change in NWC in Total change NWC	12 14	38 -2
Delayed payments, Covid-19 Adjusted change in NWC	1 15	33 31

In Q2 2022, the net working capital was higher than usual because of a difference in the timing of invoicing. The opposite development was recognised in Q3 2022 (as expected), and the change in net working capital measured year-to-date is now in line with management expectations.

Last year's positive development in trade receivables and the opposite development in trade payables can be explained by high IT hardware sales in December 2020, which subsequently were collected/paid during 2021.

Capital structure & finances

ECIT shareholder's share of equity

On 30th September 2022, ECIT AS shareholders' equity share was NOK 1,264 million (2021: NOK 1,204 million).

ECIT's portfolio of treasury shares was 1,849,984 shares on 30th September 2022 (1,867,865 shares on 30th September 2021).

Treasury shares are often used as part-payment financing acquisitions and as payment-exercising options towards existing subsidiaries.

In Q3 2022, a share-buy-back program was initiated. Under the program that ended on 16th November 2022, 1,204,672 shares were acquired at an average price of NOK 6.64.

The ordinary annual dividend for 2021 amounted to NOK 0.04 per share and was paid out to the shareholders in April 2022.

Net interest-bearing debt ('NIBD')

The net interest-bearing debt amounts to NOK 231 million as of 30th September 2022, compared to NOK 125 million last year.

The financial gearing ratio (NIBD/EBITDA) is 0.6x per 30th September 2022, compared to 0.4x last year.

Leasing liabilities (IFRS16 lease accounting) have a material impact on the financial liabilities of ECIT. Lease liabilities consist mainly of office rentals.

(NOKm)	YTD 2022	YTD 2021
Borrowings	307	190
Lease liabilities	192	239
Total interest-bearing liabilities	499	428
Interest-bearing receivables	62	56
equivalents Cash and cash	207	248
interest-bearing Total assets	269	304
(-) Net debt / Net cash	231	125
EBITDA, LTM	407	333
Debt leverage	0.6x	0.4x

ECIT has the option to acquire the minority shares in the partly owned subsidiaries within an agreed period. Most options can be utilised at a price based on last year's EBITDA multiplied by a fixed factor.

The minority option obligation (i.e., the price to exercise all options to 100%) as of 30th September 2022 is estimated to be NOK 460 million compared to NOK 458 million as of 31st December 2021. The option obligation is not part of the NIBD statement.

Capital allocation policy

Executive Management and the Board of Directors monitor the capital structure to ensure that the Group's capital resources support the strategic goals and maximise shareholder returns.

The capital allocation policy below outlines the priority for the allocation of free cash flow:

1. Repayment of NIBD in periods when the financial gearing is above the limit range,

2. 1. Value-adding investments, acquisitions, or development of existing business,
3. 1. Distribution to shareholders, including dividends and share buybacks.

Credit facility

As of 30th September 2022, NOK 287 million of the credit facility has been utilised, leaving an undrawn balance of NOK 463 million.

The leasing facility has been utilised for NOK 10 million, and the total available amount is NOK 40 million.

(NOKm)	YTD 2022	YTD 2021
Revolving facility gross Revolving facility utilized Net revolving facility available	750 -287 463	475 -123 352
Leasing facility gross Leasing facility utilized Net leasing facility available	50 -10 40	50 -12 38

Hedging reserve

To hedge against interest rate risks, ECIT has an interest rate swap contract representing NOK 100 million. The Group's debt is managed centrally by its Treasury department.

The hedging reserve comprises the fair value of hedging instruments qualifying for hedge accounting. As of 30th September 2022, NOK 1.5 million has been recognised in the equity statement.

F&A Division

Highlights

• The F&A division delivered total YTD revenue growth of 15.4% compared to 35.7% last year.
• The activity level is back at pre-Covid-19.
• The division delivered improved organic revenue growth for the quarter and is also ahead of last year measured at year-to-date.
• High M&A activity during 2022, including the acquisitions of Xacct Accounting AS, Tandem AS, and Intunor Services AS, representing NOK 218 million in annual revenue. The acquisition of Norian Group explains the high M&A growth last year.
• Consolidation processes and acquired companies affect the EBITDA-margin as large mergers requires time before integration is fully done.

Organic revenue growth ahead of last year - activity level is back at pre-Covid 19.

Slight EBITDA margin decrease given effects from consolidation and acquired companies.

Total revenue (NOKm)

EBITDA & EBITDA margin (%)

	Q3	2022	Q3	2021	YTD	2022	YTD	2021
(NOKm)	2022	%	2021	%	2022	%	2021	%
Total revenue growth	9.5%		42.5%		15.4%		33.7%
Total EBITDA growth	1.6%		26.8%		14.3%		36.1%
Revenue	340	100.0%	313	100.0%	1,133	100.0%	982	100.0%
COGS	-27	8.0%	-21	6.7%	-96	8.5%	-69	7.0%
Gross Profit	313	92.0%	292	93.3%	1,037	91.5%	912	92.9%
Personnel expenses	-218	64.1%	-197	62.9%	-699	61.7%	-628	64.0%
Other operating costs	-42	12.3%	-42	13.4%	-152	13.5%	-123	12.5%
EBITDA	53	15.5%	52	16.6%	185	16.3%	162	16.5%
EBITDA-%	15.5%		16.7%		16.3%		16.7%

IT Division

Highlights

• Continued stable demand for our IT solutions and services across all countries.
• A large order delivered in September has a positive impact on Q3 financials.
• The revenue growth throughout the year has been affected by postponed IT hardware deliveries (global supply challenge). The delivery outlook is expected to improve gradually during the remainder of 2022 and 2023.
• A large part of the IT division was merged during 2022 representing a total revenue of approx. NOK 700 million and more than 200 FTEs. The consolidation process is progressing as planned.
• The overall demand for skilled employees in the IT industry is high. Measures are taken to keep our personnel satisfied to attract new talent but equally essential to keep the existing talents within the division.

Solid demand for our IT solutions and services.

Larger orders delivered in September has a positive impact on Q3 financials.

The process of consolidation is progressing as planned.

Total revenue (NOKm)

EBITDA & EBITDA-margin (%)

	Q3	2022	Q3	2021	YTD	2022	YTD	2021
(NOKm)	2022	%	2021	%	2022 2021 %			%
Total revenue growth	30.5%		19.5%		22.2%		27.7%
Total EBITDA growth	36.6%		34.6%		33.0%		27.3%
Revenue	323	100.0%	247	100.0%	953	100.0%	780	100.0%
COGS	-123	38.0%	-94	38.1%	-344	36.1%	-309	39.6%
Gross Profit	200	62.1%	154	62.3%	609	63.9%	473	60.6%
Personnel expenses*	-130	40.3%	-100	40.5%	-431	45.3%	-333	42.7%
Other operating costs	-22	6.9%	-19	7.7%	-66	7.0%	-54	6.9%
EBITDA	48	14.8%	35	14.2%	112	11.7%	84	10.8%
EBITDA-%	14.8%		14.0%		11.7%		10.8%

Notes:

Personnel expenses include cost to external consultants

Tech Division

Highlights

• The Tech division continues the revenue growth in Q3 - YTD growth representing almost 70% (47.1%)
• The growth results from the gradual implementation of ECIT-owned software and increased external demand for the various solutions and services offered by the division.
• The amount of non-recurring revenue has increased, mainly related to consulting and services in connection with the use of our software.
• Our Danish payroll system Intect has now been launched in the Swedish market.
• ECIT Digital, our invoicing machine learning (ML) solution introduced in 2021, is gradually serving more and more customers.

The Tech division has during 2022 displayed solid growth establishing new products as well as growing existing products and services.

YTD revenue growth representing 69.8% (47.1%).

Annual recurring revenue (NOKm)

	Q3	2022	Q3	2021	YTD	2022	YTD	2021
(NOKm)	2022	%	2021	%	2022	%	2021	%
Total revenue growth	67.3%		45.8%		69.8%		47.1%
Revenue	39	100.0%	23	100.0%	116	100.0%	68	100.0%
COGS	-15	37.8%	-6	26.1%	-44	37.6%	-15	22.1%
Profit Gross	24	62.2%	17	73.9%	72	61.7%	53	77.9%
Personnel expenses	-16	41.8%	-12	52.2%	-52	44.7%	-43	63.2%
operating Other costs	-6	14.9%	-5	21.7%	-20	17.6%	-16	23.5%
EBITDA*	2	4.9%	0	0.0%	0	0.0%	-6	-8.8%
Capitalized software	-10	25.4%	-6	26.1%	-32	27.6%	-14	20.6%
EBITDA-%*	4.9%		1.7%		-0.4%		-8.8%
Notes:								Page 13

ARR = Annual recurring revenue (ARR) refers to revenue, normalised on an annual basis

Shareholder information

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INTERIM REPORT Q3 2022

Shareholder information

Shareholders per type

Share capital

The total share capital on 30th September 2022 consists of 452,050,049 shares of nominal NOK 1 each. There are three share classes, whereas the B-shares are subject to trade on the Euronext Growth stock exchange.

Treasury shares

A total of 822,026 treasury shares were sold during the first nine months of 2022.

A total of 1,493,168 treasury shares were acquired during the first nine months of 2022. In Q3 2022, 813,168 shares were acquired related to the share buyback program at an average price of 6.61 NOK.

On 30th September 2022, 1,849,984 shares were held as treasury shares, corresponding to 0.4% of the share capital.

Dividends

The ordinary annual dividend for 2021 amounted to NOK 0.04 per share and was paid out to the shareholders in April 2022.

Shareholders

ECIT has the philosophy that local ownership will create a more robust group, which reflects the many minority owners in the Group. Another, and equally important, philosophy is that if the local management and employees also own part of the Group, this will create even better unity across the Group.

The philosophy is visible in the composition of shareholders in the Group. Employees and management own 58% of the shares. The top management represents 18%, and employees and partners within the Group represent more than 40% of the shares.

When ECIT became listed on 20th May 2021, a lock-up period for certain shareholders was established.

Our shareholders are mainly located in the Nordic countries in Europe, with approx. Two-thirds of our shareholders are in Norway. CEO Peter Lauring holds, however, 49.9% of the voting shares of the Group.

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Condensed Consolidated Interim Financial Statements

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INTERIM REPORT Q3 2022

Income statement

(NOKm)	Note	Q3 2022	2022 %	Q3 2021	2021 %	YTD 2022	2022 %	YTD 2021	2021 %
Revenue	2.1	672	100.0%	557	100.0%	2,115	100.0%	1,735	100.0%
COGS		-153	22.8%	-114	20.4%	-466	22.0%	-374	21.6%
Profit Gross		519	77.2%	443	79.6%	1,649	78.0%	1,361	78.4%
Personnel expenses		-376	55.9%	-319	57.3%	-1,218	57.6%	-1,015	58.5%
Other operating costs		-45	6.7%	-43	7.8%	-148	7.0%	-120	6.9%
EBITDA		99	14.7%	80	14.4%	283	13.4%	226	13.0%
Amortisations of intangible assets		-16	2.4%	-17	3.0%	-58	2.7%	-46	2.6%
Depreciations of tangible assets		-28	4.1%	-27	4.9%	-79	3.7%	-75	4.3%
EBIT		55	8.1%	36	6.5%	146	6.9%	106	6.1%
Special items, net	2.2	-2	0.4%	0	0.0%	-11	0.5%	-8	0.5%
Financial income		19	2.9%	5	0.8%	37	1.8%	12	0.7%
Financial expenses		-13	2.0%	-6	1.2%	-30	1.4%	-24	1.4%
Profit before tax		58	8.6%	35	6.2%	142	6.7%	86	4.9%
on profit for period Tax the	2.3	-13	2.0%	-10	1.8%	-32	1.5%	-22	1.3%
Profit for the period		45	6.7%	25	4.4%	110	5.2%	64	3.7%
Attributeable to:
Shareholders in ECIT AS		25	55.6%	14	55.9%	65	59.0%	30	47.0%
Non-controlling interests		20	44.4%	11	44.1%	45	41.0%	34	53.0%

Statement of Other comprehensive income

(NOKm)	Note	Q3 2022	Q3 2021	YTD 2022	YTD 2021
Profit for the period		45	25	110	64
Items that may be reclassified to the income statement:
Foreign exchange adjustments of subsidiaries		6	-6	14	-9
Value adjustment hedges		2	0	2	0
Other comprehensive income		8	-6	16	-9
comprehensive income Total		53	19	126	55

Note	Q3 2022	Q3 2021	YTD 2022	YTD 2021
3.2	0.06	0.03	0.14	0.07
3.2	0.06	0.03	0.15	0.07
3.2	0.04	0.03	0.13	0.10
3.2	0.04	0.03	0.13	0.10

Cash Flow Statement

(NOKm)	Note	Q3 2022	Q3 2021	YTD 2022	YTD 2021	(NOKm) Note	Q3 2022	Q3 2021	YTD 2022	YTD 2021
Profit before tax		58	35	142	86	Repayment of lease liabilities	-21	-20	-66	-61
Amortizations Depreciations &		44	44	137	120	credit facilities Loans and	-5	-7	81	-2
Special items		2	0	11	8	Interests received	4	1	8	7
Financial items		-6	2	-7	12	Interests paid	-9	-3	-20	-13
EBITDA		99	80	283	226	Capital increase	0	4	0	382
						Sale and purchase of treasury
Special items		-2	0	-11	-8	shares	-5	-1	-5	2
Corporation tax, paid		-6	0	-44	-30	Transactions with minorities	-3	-41	9	-64
Change in net working capital		11	-21	14	-2	Dividends to ECIT shareholders	0	-65	-18	-65
Cash flow from operating						Dividends to minority shareholders	-2	-6	-67	-71
activities (A)		102	59	241	186	flow from financing activities Cash	-41	-137	-79	116
Investments in tangible assets		-5	-5	-13	-15	flow for period Cash the	-28	-142	-61	8
Investments in software		-12	-4	-36	-13
in subsidairies Investments	4.1	-48	-39	-161	-264	equivalents Cash and cash
Investments in other activities		-23	-21	-25	-21	beginning of period	234	393	265	246
Gain on other activities		0	0	15	9	Cash flow for the period	-28	-142	-61	8
in financial Change other assets		-1	5	-3	11	Currency translation adjustments	1	-3	3	-7
flow from investing Cash activities (B)		-90	-64	-223	-293	equivalents Cash and cash end of period	207	248	207	248
Cash flow from operating and investing activities (A+B)		12	-5	18	-107

Balance Sheet

(NOKm)	Note	30 SEP 2022	30 SEP 2021	FY 2021	(NOKm)	Note	30 SEP 2022	30 SEP 2021	FY 2021
Goodwill		1,134	956	955	Share capital	3.1	452	443	445
Customer contracts		352	331	335	Treasury shares		-2	-2	-1
Software		134	104	113	Reserves and retained earnings		816	763	754
Total non-current intangible assets		1,620	1,391	1,434	Total ECIT AS shareholders share	of equity	1,266	1,204	1,198
buildings equipment Land, and		44	54	50	Non-controlling interest		233	197	165
Right-of-use assets		183	230	226	Total equity		1,500	1,401	1,363
tangible Total non-current assets		227	284	276	liabilities Lease	3.3	121	163	160
Other financial assets		93	66	67	Borrowings	3.3	296	157	181
Other receivables, interest bearing		43	40	34	Provisions		31	29	26
Other receivables		13	11	11	liabilites Other non-current		4	7	7
Deferred tax assets		29	18	31	Deferred liabilities tax		77	73	78
Total non-current financial assets		178	135	112	liabilities Total non-current		529	430	451
Total non-current assets		2,025	1,810	1,822	Lease liabilities	3.3	71	76	76
Inventories		12	15	12	Borrowings	3.3	11	32	36
receivables Trade		343	295	325	Provisions		18	8	5
receivables Tax		18	5	18	Tax payables		61	31	59
receivables, interest bearing Other		18	16	16	Trade payables		120	101	111
Other receivables		148	109	119	Deferred income		60	39	40
Cash and cash equivalents	3.3	207	248	265	Dividend		4	4	76
Total current assets		746	688	754	Other current liabilites		399	378	358
Total assets		2,772	2,498	2,576	Total current liabilities		745	667	762
					equity liabilities Total and		2,773	2,498	2,576

Statement of Changes in Equity 2022

	Share	Not reg. Capital	Share	Treasury	Reserve for	Retained		Non controlling	Total
(NOKm)	Capital	increase*	premium	shares	hedging	earnings	Total	interests	equity
Equity at 1 January	445	12	722	-1	0	20	1,198	165	1,363
Profit for the year	0	0	0	0	0	65	65	45	110
Net exchange differences recognized in OCI	0	0	0	0	0	13	13	1	15
Value adjustments of hedging instruments	0	0	0	0	2	0	2	0	2
Other comprehensive income	0	0	0	0	2	13	15	1	16
comprehensive income Total	0	0	0	0	2	78	80	47	126
Transactions with shareholders:
Capital increase registreded	7	0	46	0	0	0	52	0	52
Capital increase approved registrered not	0	-12	0	0	0	0	-12	0	-12
Dividends distributed	0	0	0	0	0	0	0	-16	-16
of Sale and purchase treasury shares	0	0	0	-1	0	-4	-5	0	-5
Addition of non-controlling interests	0	0	0	0	0	0	0	37	37
Transactions of with non-controlling interests shares	0	0	0	0	0	-40	-40	7	-34
Other adjustments	0	0	0	0	0	-7	-7	-6	-12
transactions with Total shareholders	7	-12	46	-1	0	-51	-11.6	22	10
Equity at 30 September 2022	452	0	768	-2	2	47	1,266	233	1,500

Statement of Changes in Equity 2021

	Share	Not reg. Capital	Share	Treasury	Retained		Non controlling	Total
(NOKm)	Capital	increase*	premium	shares	earnings	Total	interests	equity
Equity at 1 January	388	4	371	-8	55	811	161	1,783
Profit for the year	0	0	0	0	30	30	34	64
Net exchange differences recognized in OCI	0	0	0	0	-13	-13	4	-9
Other comprehensive income	0	0	0	0	-13	-13	4	-9
Total comprehensive income	0	0	0	0	17	17	38	55
Transactions with shareholders:
Capital increase registreded	55	0	356	0	0	410	0	410
Capital increase registrered approved not	0	16	0	0	0	16	0	16
Dividends distributed	0	0	0	0	0	0	-6	-6
Sale and purchase of treasury shares	0	0	0	6	28	34	0	34
Addition of non-controlling interests	0	0	0	0	0	0	28	28
Transactions of with non-controlling interests shares	0	0	0	0	-62	-62	-24	-86
IPO Expenses	0	0	-25	0	4	-21	0	-21
Total transactions with shareholders	55	16	331	6	-31	376	-3	374
Equity 30 September 2021 at	442	5	698	-4	67	1,204	197	1,400

Notes to the Condensed Consolidated Financial Statements

Page | 23

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS INTERIM REPORT Q3 2022

1. Basis for preparation

General information

ECIT (the Group) consists of ECIT AS (the company) and its subsidiaries. The head office is located in Oslo, Norway.

ECIT's condensed consolidated interim financial statements for the third quarter and first nine months of 2022 were authorised for issue by the board of directors on 16th November 2022.

Basis for preparation

The condensed consolidated interim financial statements for the nine months ended 30th September 2022 have been prepared in accordance with IAS 34 Interim Financial Reporting with requirements according to Norwegian GAAP "Forenklet IFRS". The interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements. They should be read in conjunction with the Group's annual consolidated financial statements as of 31st December 2021.

In preparing the condensed consolidated interim financial statements, management makes various accounting estimates and judgements that form the basis of the presentation, recognition, and measurement of the Group's assets, liabilities, income, and expenses. The estimates and judgements made are based on historical experience and other factors that management assesses to be reliable but that, by nature, are associated with uncertainty and unpredictability and may prove incomplete or incorrect.

As a result of the uncertainties inherent in connection to the above, periodic adjustments may occur.

Reference is made to ECIT Group's 2021 Annual Report for a description of accounting policies; hence no changes has been initiated.

The condensed consolidated interim financial statements are unaudited.

2. Profit for the year

2.1 Segments information

Operating segments are defined by the operational and management structure of ECIT, derived from the type of services we deliver. Our operating segments reflect our division and Group reporting used for management decision-making.

Operating divisions

Three divisions carry out our business operations, forming our segment reporting.

Finance & Accounting

The F&A division delivery is divided into four services: Accounting, Payroll & HR, F&A management support, and Debt collection.

IT

Full-stack services provider serving as a one-stop-shop within IT through Managed Services, Hosting & Hybrid cloud, IT Consulting, and Digitalization.

Tech

The Tech division develops software applications primarily used in Finance & Accounting business.

Measurement of earnings by segment

Our business segments are measured and reported down to EBITDA before special items. Segment results are accounted for in the same way as in the consolidated financial statements.

Segment income/expenses comprise the items directly attributable to the individual segment and the items that may be allocated to the respective segment on a reliable basis.

Income and expenses relating to Group functions and investing activities are not included in the statement of segment information but are presented under 'Group & Elim.'.

			Q3 2022					Q3 2021
(NOKm)	F&A Division	IT Divsion	Tech Division	Group Elim. &	Total	F&A Division	IT Divsion	Tech Division	Group Elim. &	Total
Revenue	340	323	39	-30	672	313	247	23	-26	557
COGS	-27	-123	-15	12	-153	-21	-94	-6	7	-114
Profit Gross	313	200	24	-19	519	292	154	17	-20	443
Personell expenses	-218	-130	-16	-11	-376	-197	-100	-12	-10	-319
Other operating costs	-42	-22	-6	25	-45	-42	-19	-5	23	-43
EBITDA	53	48	2	-4	99	52	35	0	-7	80
Total revenue growth	9.5%	30.5%	67.3%	-14.6%	20.8%	42.5%	19.5%	45.8%	-34.6%	35.6%
EBITDA-%	15.5%	14.8%	4.9%	13.0%	14.7%	16.7%	14.0%	1.7%	-24.9%	14.4%

			YTD 2022			YTD 2021
(NOKm)	F&A Division	IT Divsion	Tech Division	Group Elim. &	Total	F&A Division	IT Divsion	Tech Division	Group Elim. &	Total
Revenue	1,133	953	116	-87	2,115	982	780	68	-95	1,735
COGS	-96	-344	-44	18	-466	-69	-309	-15	19	-374
Profit Gross	1,037	609	72	-69	1,649	912	473	53	-77	1,361
Personell expenses	-699	-431	-52	-36	-1,218	-628	-333	-43	-11	-1,015
Other operating costs	-152	-66	-20	91	-148	-123	-54	-16	73	-120
EBITDA	185	112	0	-14	283	162	84	-6	-14	226
Total revenue growth	15.4%	22.2%	69.8%	7.9%	21.9%	35.7%	27.7%	47.1%	-47.8%	32.6%
EBITDA-%	16.3%	11.7%	-0.4%	16.3%	13.4%	16.7%	10.8%	-8.8%	-14.3%	13.0%
Geographical information				Revenue			Q3 2022	Q3 2021	YTD 2022	YTD 2021
ECIT operates throughout the northern part of Europe and has activities in 10 countries. Our geographical information is presented as follows:				Norway	(NOKm)		448	349	1,411	1,107
Norway •				Sweden			100	97	331	317
• Sweden				Denmark			96	86	289	256
Denmark •			Other			28	25	84	55
• Other				Total			672	557	2,115	1,735
Other includes the United Kingdom, Germany, Finland, Poland, Lithuania, Serbia, Romania.			and				Q3	Q3	YTD	YTD
							2022	2021	2022	2021

Geographical information

• Norway
• Sweden
• Denmark
• Other

Income/expenses are allocated to the geographical areas according to the country in which the individual entity is based.

Intercompany transactions are made on an arm's length basis and excluded in tables to the right.

Revenue (NOKm)	Q3 2022	Q3 2021	YTD 2022	YTD 2021
Norway	448	349	1,411	1,107
Sweden	100	97	331	317
Denmark	96	86	289	256
Other	28	25	84	55
Total	672	557	2,115	1,735
	Q3	Q3	YTD	YTD
EBITDA (NOKm)	2022	2021	2022	2021
Norway	61	46	174	130
Sweden	13	17	51	50
Denmark	18	15	44	38
Other	7	2	14	8
Total	99	80	283	226

2.2 Special items

Special items are used in connection with the presentation of profit or loss for the year to distinguish consolidated operating profit from special items, which by their nature are not related to the Group's ordinary operations.

Special items comprise:

• Transactions costs relating to the acquisition and divestment of enterprises
• Restructuring costs and impairment costs relating to fundamental structural, procedural, and managerial reorganisations, as well as any related gains or losses on disposals

Management judgements and estimates

In classifying special items, judgement is applied to ensure that only non-recurring items are included.

(NOKm)	Q3	Q3	YTD	YTD
	2022	2021	2022	2021
Transactions costs Restructuring costs Total	1 1 2	0 0 0	6 5 11	6 2 8

2.3 Tax

Tax for the period

Tax for the period comprises current and deferred tax on profit or loss and adjustments to previous years, including adjustments due to tax rulings.

The income statement recognises tax for the period unless the tax expense relates directly to items included in other comprehensive income or equity.

(NOKm)	Q3 2022	Q3 2021	YTD 2022	YTD 2021
Profit before tax	58	35	142	86
Calculated tax on profit for the period	12.8	7.6	31.2	18.8
Tax effect of: Adjustment of calculated tax in foreign group enterprises relative to 22.0%	-0.2	0.6	-0.5	-0.2
Non-deductible expenses/non
taxable income Non-deductible losses/non	0.3	0.4	0.9	0.8
taxable gain on shares	-3.4	0.0	-5.6	0.0
Temporay differences, net	3.0	1.5	5.4	2.3
Other tax adjustments	0.6	-0.1	0.4	-0.1
Tax of the period	13.1	10.0	31.8	21.6
Effective tax rate	22.6%	29.0%	22.4%	25.3%

3. Capital and financial risk

3.1 Top 20 shareholders of ECIT AS

ECIT AS is owned through a multiple-share class structure. Peter Lauring, the CEO and Founder, is the largest owner holding 9.4% of the economic interest and 49.9% of the voting rights through CGL Holding AS and CGL Holding II AS. Management and employees hold approximately 58.3% of the shares in ECIT AS.

A-shares are not subject to listing but carry ten votes per share and are all owned by Peter Lauring. A-shares are to be converted to B-shares when Mr Lauring is no longer a part of ECIT or in case of a sale to a third party or listing of the A-shares.

B-shares carry one vote per share and are listed on Euronext Growth Oslo. Shareholders and active operational shareholders in the Group before listing are subject to lock up for 6 and 12 months after listing. Shares used as a part of an acquisition of a new subsidiary are usually subject to a lock-up period of 12 months from the acquisition date.

C-shares are not subject to listing and carry one vote per share. All C-shares are subject to lock up for 36 months after listing. 25% of each holder's C-shares may be converted to B-shares in December of each year upon the board's consent. After 36 months, C-shares may be converted to B-shares in connection with the annual general meeting.

('000)	A-shares	B-shares	C-shares	Total shares	Ownership in %	Voting share
Holding Holding CGL AS & CGL II AS	41,336	1,212		42,548	9.4%	49.9%
Kapital Varner As		25,000		25,000	5.5%	3.0%
Services Ic 2 As		24,423		24,423	5.4%	3.0%
Kapital Bras As		15,900		15,900	3.5%	1.9%
Paradigm Capital Value Fund		15,872		15,872	3.5%	1.9%
Mikkel Holding Walde Aps		198	15,525	15,723	3.4%	1.9%
Y-Not Aps		125	14,840	14,990	3.3%	1.8%
Pensjon Mp Pk		10,622		10,622	2.4%	1.3%
Anglo Supply As		9,989		9,989	2.2%	1.2%
Deka Gmbh Investment		9,800		9,800	2.2%	1.2%
Paradigm Capital Value LP		7,504		7,504	1.7%	0.9%
Long Path Partners Lp		6,978		6,978	1.5%	0.8%
Veiby Invest As		6,566		6,566	1.5%	0.8%
Lön Sverige Pa Kompetens Ab		5,217		5,217	1.2%	0.6%
Equity Loe As		4,714		4,714	1.0%	0.6%
Infolink Holding As		4,503		4,503	1.0%	0.5%
Litu As		4,261		4,261	0.9%	0.5%
Sewell As		3,762		3,762	0.8%	0.5%
Mathiesen Holding af 2018 ApS P H		3,737		3,737	0.8%	0.5%
Ubs (Private Banking) Ag		3,659		3,659	2.1%	0.4%
20 shareholder total Top	41,336	164,041	30,365	235,767	52.2%	73.3%
Other shareholders		178,991	37,318	216,284	47.8%	26.7%
of Total number shares	41,336	343,031	67,683	452,050	100.0%	100.0%

Notes:

CGL Holding AS & CGL Holding II AS consists of all shares held by Peter Lauring, companies he has the majority of shares in, and his relatives. Peter Lauring's maximum voting right of 49.9% according to ECIT's articles of association regardless of ownership.

Y-Not ApS consists of all shares held by Klaus Jensen, companies he has the majority of shares in and his relatives.

3.2 Earning per share

Earnings per share (EPS) are calculated according to IAS 33.

Three one-off items impact earnings per share in the first nine months of 2022: special item cost and profits from the divestment of the subsidiary ECIT Invent AS and associated company Cloud Connection. Last year's earnings per share were impacted by special items and IPO costs in the second quarter.

	Q3	Q3	YTD	YTD
(NOKm)	2022	2021	2022	2021
Profit of the period	45	25	110	64
Shareholders in ECIT AS	25	14	65	30
Non-controlling interests	20	11	45	34
Adjusted profit of the period	33	25	97	76
Shareholders in ECIT AS	17	14	59	42
Non-controlling interests	16	11	38	34
('000 shares)
number of shares Average	450,190	442,684	448,753	415,615
of Average number treasury
shares	-1,818	-2,883	-1,514	-4,918
Average dilutive effect of
warrent/options	0	0	0	0
Diluted average number of shares
in cirkulation	448,372	439,800	447,238	410,697
(NOK 1)
EPS	0.06	0.03	0.14	0.07
Diluted EPS	0.06	0.03	0.15	0.07
Adjusted EPS	0.04	0.03	0.13	0.10
Adjusted diluted EPS	0.04	0.03	0.13	0.10

3.4 Net interest-bearing debt

The net interest-bearing debt amounts to NOK 231 million as of 30th September 2022, compared to a net cash balance of NOK 125 million last year.

(NOKm)	YTD 2022	YTD 2021
Borrowings Lease liabilities	307 192	190 239
Total interest-bearing liabilities	499	428
Interest-bearing receivables	62	56
Cash and cash equivalents	207	248
Total interest-bearing assets	269	304
Net debt / Net cash (-)	231	125
EBITDA, LTM	407	333
Debt leverage	0.6x	0.4x

3.4 Events after the reporting period

With reference to company announcement No. 105, Argus Kreditt AS has become part of ECIT as of the 19th October 2022. ECIT has acquired 90% of Argus Kreditt AS.

With reference to company announcement No. 110, Intunor Services AS has become part og ECIT as of the 10th November 2022. ECIT has acquired 50.1% of the shares in Intunor Services AS, including an option agreement to acquire the remaining 49.9% of the shares.

With reference to company announcement No. 114, ECIT has announced a new share buyback program that will run from 17th November 2022 until the end of trading on Euronext Growth on 22nd December 2022, both days inclusive. During the period, ECIT AS will buy treasury shares up to a maximum of NOK 4 million.

4. Acquisitions of the Group

4.1 Acquisitions during the first nine months

During the first nine months of 2022, ECIT has made six acquisitions, two in the F&A division, one in the Tech division, and three in the IT division.

Earnings impact

The six acquisitions made by the Group contributed NOK 53.5 million to the Group's YTD revenue and NOK 9.0 million to the Group's EBITDA, corresponding to an EBITDA -margin of 16.9%.

Transaction costs

Total transaction costs related to the acquisitions amount to NOK 6 million. Transaction costs are accounted for in the income statement as special items.

Acquired companies (NOKm)	Revenue 2021	Revenue YTD 2022	PAT YTD 2022	FTE
Accounting, Xacct Norway, F&A	49.8	46.4	5.0	37
Catacloud, Tech Norway,	0.3	0.2	-1.0	2
Isonor IT, Norway, IT	11.8	8.5	0.5	6
Tandem AS, Norway F&A	49.0	37.7	5.4	33
Auto-Flow ApS, Denmark IT	3.1	3.8	-1.4	14
ApS, Denmark Prosys IT	9.8	8.2	0.7	5
Total	123.8	104.8	9.2	97

Net investments in subsidiaries

The acquisitions have been paid partly with cash and partly with shares through treasury shares or a capital increase.

Adjusted for the fair value of acquired cash, cash equivalents, and paid-out earn-out for prior acquisitions of NOK 6 million, the cash outflow for new subsidiaries amounted to NOK 203 million (outflow) during the first nine months of 2022.

Paid earn-out obligations are subject to prior acquisitions. The earn-out obligation for the new subsidiaries is due within the next 12 months.

(NOKm)	Q3 2022	Q3 2021	YTD 2022	YTD 2021
Cash payment	-70	-40	-186	-279
Sales of subsidiaries	14	0	14	0
Paid earn out obligation	-2	0	-6	-17
Majority share of cash	10	1	17	32
Net investment in subsidairies	-48	-39	-161	-264
New subsidiaries:
Share payment	-1	-24	-1	-40
Cash payment	-70	-40	-186	-279
Earn out obligation	0	0	-16	0
Investment in new subsidiaries	-71	-64	-203	-319

Notes:

Revenue 2021 is proforma figures equal to figures presented in the local annual report Revenue and PAT YTD 2022 is proforma figures calculated from 1 January to the end of the period Majority share of cash equals the share of cash at the acquisition date owned by the Group

The fair value of acquired net assets and recognised goodwill

The table to the right gives the principal fair values of acquired assets and liabilities at the acquisition date.

The intangible assets mainly consist of goodwill and are primarily related to synergy effects from integration with ECIT's existing business. Goodwill is non-deductible for tax purposes.

Integration of the acquired companies is still ongoing. Consequently, net assets, including goodwill and other intangible assets, may be adjusted. Off-balance sheet items may be recognised for up to 12 months after the acquisition date in accordance with IFRS 3.

In April of 2021, the Group acquired Norian Group, which is a significant acquisition for the Group and therefore specified individually. In 2022, no single acquisitions were of a size that could be defined as significant.

(NOKm)	Total 2022	Norian Group	Other 2021	Total 2021
Software	1.1	4.6	20.7	25.3
Property, plant and equipment	0.4	2.2	0.6	2.8
Financial fixed assets	0.0	0.0	8.2	8.2
Right-of-use assets	11.3	56.0	0.0	56.0
Deferred tax	0.1	2.1	0.2	2.3
Inventories	0.0	0.0	1.4	1.4
Trade receivables	14.8	33.6	5.9	39.6
receivables Other	23.1	163.3	1.8	165.1
equivalents Cash and cash	18.9	33.4	5.5	38.9
Total Assets	69.8	295.3	44.3	339.6
liabilities Lease	11.3	56.0	0.0	56.0
Provisions	0.1	6.3	1.5	7.8
debt Long-term	1.5	0.0	3.1	3.1
Trade payables	2.8	27.8	1.5	29.2
Other payables	36.5	184.0	15.6	199.6
Liabilities Total	52.2	274.0	21.6	295.7
Non-controlling interest' share of acquired net assets	3.4	5.7	6.6	12.3
Acquired net assets	14.2	15.6	16.1	31.7
Cash payments	185.8			279.0
Share payments	0.7			36.2
Out obligation Earn	15.8			0.0
Goodwill and intangible assets arising from the acquisition	188.0			283.6

Definition of Financial Highlights and Ratios

The management provides selected financial ratios and key figures in the report to allow the reader to understand the Group's underlying performance better. The alternative performance measures provided may be defined or calculated differently than for other companies.

Key figures for financial performance

Organic revenue growth = growth in companies where ECIT Group legally had control in both the actual period and the comparison period. Organic growth is calculated on a monthly basis.

Acquisitions impact = The impact on the total growth that relies on new acquisitions.

Currency translation = The impact on the total growth due to exchange rate changes.

Total revenue growth = Organic growth, acquisitions impact, and currency translation in total.

Proforma revenue = Proforma revenue equals revenue in the Group as all companies acquired within the year had been owned as of 1st January.

Recurring revenue = Recurring revenue is where the revenue is predictable, stable, and likely to continue. In general, it involves less risk and maximum revenue predictability.

Repeatable revenue = Repeated revenue is defined as somewhat predictable revenue (but can vary) and likely to continue due to the long customer relationships

Annualised recurring revenue (ARR) = Annual recurring revenue (ARR) refers to revenue, normalised on an annual basis, that is expected to be received from customers for providing them with products or services. Essentially, annual recurring revenue is a metric of predictable and recurring revenue generated by customers within the next twelve months.

EBITDA = Operating profit before amortisations, depreciation, financial items and taxes.

Proforma EBITDA, last twelve months = Proforma EBITDA equals EBITDA with all companies represented in all twelve months, no matter the date of acquirement.

Special items = Income or expense that by nature are not related to the Group's ordinary operation or investments in future activities.

			Gross profit x 100
	Gross margin	=	Net revenue
			before special EBITDA, items x 100
	margin EBITDA	=	Net revenue
	Solvency ratio	=	Equity of reporting end period x 100
			Total assets end of reporting period
			Cash investment in
	Capital expenditure in % of revenue	=	tangible x 100 assets Net revenue
ratio Leverage		=	interest-bearing Net debt Proforma before EBITDA, special items, last twelve months
	PAT = Profit after-tax or net income.

Adjusted profit for the year = Adjusted profit for the year equals profit for the year before special items, IPO costs, and gain on portfolio investments. The management uses adjusted profit for the year to measure the performance of the Group, excluding one-off items.

Adjusted diluted earnings per share = Adjusted diluted earnings per share equals diluted earnings per share calculated at an adjusted profit for the year. The management uses adjusted diluted earnings per share to measure the performance of the Group, excluding oneoff items.

Adjusted diluted earnings per share, Last-Twelve-Months = Adjusted diluted earnings per share LTM equals diluted earnings per share calculated at an adjusted profit for the year for the last twelve months. The management uses adjusted diluted earnings per share to measure the performance of the Group, excluding oneoff items.

Net working capital = Receivables and other current operating assets less trade payables and other current operating liabilities. Tax payable and earn-out obligations are not included. Net working capital is not to be compared to the change in net working capital in the cash flow statement since the entry values of acquired companies are eliminated in the cash flow statement.

Net-interest-bearing-debt = consists of interest-bearing assets less interest-bearing debt. Interest-bearing debt consists mainly of bank loans (credit facility) and lease liabilities, whereas interest-bearing assets mainly consist of cash and outstanding loans to minority shareholders.

Leverage ratio = Proforma EBITDA last twelve months are used to match the full impact of new acquisitions on net interest-bearing debt.

Net investments in subsidiaries = Net cash payment corresponds to the cash payment for the shares, less cash included in the subsidiaries at the time of acquisition or sale. The effect of the new subsidiary's balance sheet is therefore eliminated.

Adjusted free cash flow = Cash flow from operating activities less IFRS16 leases and before investments in new subsidiaries, investments in software, and special items.

DSO = Days sales outstanding (DSO) is a measure of the average number of days a company takes to collect payment for a sale. DSO is determined by the number of days. DSO is calculated based on proforma revenue last twelve months.

CAPEX in % of revenue = Investments in tangible assets excluding lease agreements and additions from business combinations per cent of revenue.

Software in % of revenue = Investments in software excluding additions from business combinations per cent of revenue.

The number of customers = customers who have generated revenue for the Group within the last twelve months.

FTE = Calculated full-time employees.

The majority share of revenue and EBITDA = Shareholders of ECIT AS' share of revenue and EBITDA. The share is calculated on legal figures for the last twelve months (LTM) and with the ownership as of the end of the period.

Gender diversity = Gender diversity is measured between male, female and non-binary. Non-binary is not shown in the overview since the share of non-binary people in the Group is less than 1%.

Gender diversity, managerial = Managerial level is defined by people within ECIT Group with responsible of employees or with tasks considered as management level.

Financial ratios and key figures provided are important for ECIT and to stakeholders as is illustrates the underlying performance of ECIT.