ECIT AS

Investor Presentation • Nov 16, 2021

ECIT | Q3 Interim Report | 2021

Investor presentation 16th November 2021

Agenda

• 1. A growth company
• 2. Shareholder value creation
• 3. Q3 and YTD Q3 2021 highlights
• 4. Key financial targets review
• 5. Update on acquisitions
• 6. Divisions – financial highlights
• 7. Cash Flow & Net working capital
• 8. Financial position
• 9. Appendix

A growth company

To a large extent ECIT is owned by its entrepreneurs – historic as well as new.

The ownership is reflected in the consideration, care and pride attached to everything we do.

Through organic growth, selected acquisitions and partnerships we improve our services and expand our market position.

Large, fragmented non-cyclical markets – Nordic stronghold

Offerings at the cross point of F&A- and IT-services development

Large and sticky customer base with high level of recurring revenues

Committed entrepreneur-based organization with experienced management team

Growth potential from up- and cross selling, and potential for continued margin expansion – implementing "The ECIT way" (consolidation)

Proven buy-and-build growth strategy with both M&A roadmap and integration plans in place

Shareholder value creation

Financial performance (NOK million)

Adjusted diluted earnings per share*** (NOK)

Free cash flow**** (NOK million)

Notes

474

19

12

2016 2017

*) IFRS light w/ IFRS16 leasing

16

2018

Annual acquired full year revenue** (NOK million)

**) Number of companies acquired per year are included in the siloes

416

***) Adjusted for one-off items in 2020 and 2021

20

^{16 191 179 7}

284

2019

**** Free cash flow less IFRS leasing and before special items, R&D and acquisitions

456

Q3 2021 highlights

			Management comments
Revenue Growth	EBITDA margin	Free cash flow
35.6% (41.7%)	14.4% (15.7%)	NOK 34m (NOK 22m)	Q3 Revenue growth at 35.6%, 7.9% organic and • 28.7% from acquisitions.
Organic 7.9% (3.7%)			Continued high organic growth in the IT business • whereas the F&A business more gradually is picking up.
			• EBITDA margin at 14.4% is in line with expectations – 2021 acquisitions explains the
Increase ownership in subsidiaries	Acquisition	Consolidation	development compared to last year.
	WLCOM AS	F&A Norway merger	• Average ownership in subsidiaries increased
Average ownership: 64,8% 64,1% 57,4%	A Norwegian IT software and consultancy company	IT Consult Denmark merger	from 57.4% (06-2021), 64.1% (09-2021) and 64.8% (16th November 2021)
June 21 sep-21 nov-16			Two substantial mergers. F&A Norway and IT • Denmark.

YTD Q3 2021 highlights

Revenue EBITDA* EBITDA margin*

• The financial performance YTD is considered "in line" with management expectations.
• Organic growth above financial target despite some covid-19 impact.
• EBITDA margin marginally better than last year.
• Free cash flow NOK 114 million (144) affected by Covid-19 (prolonged pay.). Adj. free cash flow better than last year of NOK 147 million (110).
• Profit is less gain from sale of shares in Modern Ekonomi (NOK ~12m) and last year was impacted by a financial gain (NOK 41m) from sale of shares in a portfolio investment.
• Acquired revenue of NOK 456 million (as per 16th November 2021)

Key financial targets

Metric	Q3 YTD 2021	Q3 YTD 2020	Mid-to-long term ambitions
Growth	•	•	Organic CAGR: ≥ 5.5%
	Organic: 6.8%	Organic: 8.7%	•
	•	•	CAGR including acquisitions: ≥ 15%
	Incl. Acq.: 33.6%	Incl. Acq.: 33.5%	•
EBITDA margin	EBITDA margin: 13.0%	EBITDA margin: 12.9%	EBITDA margin: →17%
	•	•	•
NIBD/EBITDA	NIBD/EBITDA: 0.4x	NIBD/EBITDA: -0.2x	•
	•	•	NIBD/EBITDA: < 1.5x
M&A	• Revenue acquired YTD Sept.: NOK 456m	• Revenue acquired YTD Sept.: NOK 284m	Average revenue acquired per year: ~ NOK 350m •

Acquisitions in 2021

F&A

• Adding expertise within nearshoring and robot technology as well as significant experience with medium to large customers (Norian).
• Strengthening expertise within '24SevenOffice' technology(Value Group).
• Increasing ECIT presence in the F&A SE market (ASK)
• Strengthening debt collection (Aktiv Kontroll).

• Specialised software system supporting especially process industries (Food, Aggregates, Waste and other process) delivered on top of cloud-based (mainly Visma) systems including digitalising processes and managed services. (WLCOM and PC System Senteret).

IT

• Delivers cloud-based (mainly MS) systems including implementation, customising and digitalising customer processes within ERP, CRM, and BI (Peritus)
• They all belong within ECITs digitalising area.

The process for acquiring, integrating and merge companies creating multi-competence centre

IT division

Management comments

• Continued high organic growth.
• The order pipeline remains solid.
• EBITDA margin development in line with expectations.
• Merger in IT Consult Denmark combined revenue of NOK 80 million.

Quarterly revenue and EBITDA & margin (NOKm) Ongoing consolidation

F&A division

Management comments

• Covid-19 impact on organic growth gradually diminishing during Q3 2021.
• EBITDA margin affected by 2021 acquisitions.
• Substantial merger in F&A Norway combined revenue of NOK 300 million.

Quarterly revenue and EBITDA & margin (NOKm) Ongoing consolidation

Tech division

Numbers of customers – per quarter Recurring Revenue – Q3 and YTD Q3

Financial overview Q3

Financial overview YTD Q3

• Number of customers increased yearon-year by 26%
• ARR at NOK 74 million versus NOK 58 million at year-end 2020.

Cash Flow & Net working capital

	YTD	YTD
Cash Flow Statement (NOKm)	2021	2020
Cash flow from operations	181	205
Cash flow from investing	-293	-50
flow from financing Cash	117	-15
Cash flow for the period	5	140
Specification of free cash flow:
flow from operations Cash	181	205
Special items	8	0
investments in tangible Net assets	-15	-16
Repayment of lease liabilities	-61	-45
flow Free cash	114	143
Adjusted free cash flow:
Covid-19 impact NWC	33	-34
Adjusted free cash flow	147	110

Reference to made to the condensed cash flow statement.

(NOKm)	YTD 2021	YTD 2020
receivables Accounts Accounts payable	16 -9	22 -13
Delayed payments - Covid-19 Other change in NWC	-33 21	34 16
Total change in NWC	-5	59
Delayed payments - Covid-19 Adjusted in change NWC	33 28	-34 25

Cash Flow Statement Change in NWC Management comments

• Cash flow for the period at NOK 5m (140m).
• Cash flow from operating activities positively impacted by higher EBITDA but offset by covid-19 affected increase of NWC (debt repayment).
• Adjusted for covid-19 impact, the change in NWC year-on-year would have been better than last year (28m versus 25m).
• Adjusted free cash flow of NOK 147 million (110).
• Cash flow from investments minus NOK 293m mainly acquisitions.
• Cash flow from financing activities: Capital increase from the IPO minus payments to increase the ECIT ownership share and dividends.

Financial position

Net-interest-bearing-debt Credit facilities Management comments

	YTD	YTD
Net-interest-bearing-debt (NOKm)	2021	2020
and credit facilities Loans	190	128
interest bearing liabilities Other	0	2
Total financial liabilities	190	130
Other interest bearing receivables	56	74
Cash and cash equivalents	248	292
Total financial assets	304	366
/ (-) Net debt Net cash IFRS16 leases , ex.	-114	-236
liabilities Lease	239	193
(-) incl Net debt / Net cash IFRS16 leases ,	125	-42
(before special items) EBITDA LTM ,	333	247
Debt leverage	0 4	-0 2

(NOKm)		YTD 2021	YTD 2020
Acq. facility gross		475	270
Acq. facility utilized		-123	-103
	Net acq. facility available	352	167
Leasing facility gross		30	21
Leasing facility utilized		-12	-10
	Net leasing facility available	18	11

• Net debt at NOK 125 million compared to a net cash balance last year of minus NOK 42 million.
• The increase in net debt compared to last year explained by a higher acquisition volume financed through cash payments NOK 264 million (61).
• Increased leasing liabilities (IFRS16 accounting) explained by acquired companies.
• Option "debt" related to minority shares represent approx. NOK 490 million (NOK ~550m as of 30 June 2021). Not calculated into NIBD.
• The credit facility has been utilized by NOK 123 million leaving NOK 352 million available.

Q&A

Appendix

Condensed income statement

		Q3	Q3	YTD	YTD
(NOKm)	Note	2021	2020	2021	2020
Revenue	2	557	411	1 735	1 299
Direct costs		-114	-87	-374	-290
Gross Profit		443	324	1 361	1 010
Other external expenses		-43	-29	-120	-78
Staff costs		-319	-230	015 -1	-764
EBITDA*	2	80	64	226	168
Special items , net	3	0	0	-8	0
EBITDA		80	64	218	168
Amortizations depreciations and	4	-44	-33	-120	-91
EBIT		36	31	98	77
Financial items , net		-2	41	-12	39
Profit before tax		35	72	86	116
profit for the period Tax on	5	-10	-9	-22	-27
Profit for the period		25	63	64	88
Adjusted profit for period attributeable the to:
in Shareholders ECIT AS		14	11	34	21
Non-controlling interests		11	11	34	26
Shareholders in ECIT AS		55 4% ,	49 4% ,	49 9% ,	45 0% ,
Non-controlling interests		44 6% ,	50 6% ,	50 1% ,	0% 55 ,
Adjusted diluted earnings share (NOK) per	6	0 03 ,	0 03 ,	0 08 ,	0 06 ,

• Growth in revenue are positive impacted by combined organic- and acquisition growth. The currency impact for the first nine month has had an negative effect on the total growth (minus 2%).
• 'Special item' cost represent NOK 8 million and is mainly related to M&A transactions cost. No special items cost included in third quarter.
• Year-to-date amortizations and depreciations' have increased mainly due to acquisitions, whereas amortizations coming from customer relationship and depreciations from capitalized IFRS16-leasing are the two largest contributors.
• Year-to-date 'Financial items, net' have increased compared to last year which is explained by the IPO cost and exchange rate adjustments.

Condensed Cash Flow statement

(NOKm) Note	Q3 2021	Q3 2020	YTD 2021	YTD 2020
Operating profit before amortisation and depreciation (EBITDA)*	81	64	226	168
Special items Corporation tax , paid Change in net working capital (NWC) Cash flow from operating activities (A)	0 0 -21 59	0 -4 -15 45	-8 -31 -5 181	0 -21 59 205
investments in tangible Net assets Net investments in Research Development & Net Investments in subsidairies 7 Net investments in other activities in financial Change other assets Cash flow from investing activities (B)	-5 -4 -39 -21 5 -64	-6 -8 -24 52 -2 12	-15 -12 -264 -12 11 -293	-16 -23 -56 42 3 -50
Cash flow from operating and investing activities (A+B)	-5	58	-111	155
Repayment of lease liabilities and credit facilities Loans Capital increase Sale and purchase of treasury shares Transactions with minorities Dividends distributed Cash flow from financing activities	-20 -7 4 -1 -41 -71 -137	-18 20 7 -1 -12 -8 -12	-61 -6 382 2 -64 -137 117	-45 57 7 -3 22 -52 -15
Cash flow for the period	-142	45	5	140
Cash and cash equivalents beginning Cash flow for the period translation adjustments Currency Cash and cash equivalents end of period	390 -142 -1 248	248 45 -1 292	246 5 -4 248	152 140 0 292

• Change in net working capital development YTD is affected by covid-19 (prolonged payment).
• Cash flow from investments of minus NOK 293 million (-50) are mainly explained by acquisitions (net cash investments of NOK 264 million) whereas Norian and WLCOM are among the largest.
• Capital increased is explained by the IPO.
• Cash payments to the minority shareholder as part of the process of increasing ECIT's ownership in subsidiaries also explain the development in cash flow from financing activities.
• Dividend distributed consist of dividend paid out to both minority shareholders and ECIT shareholders.

Condensed balance Sheet

	30 SEP	30 SEP	31 DEC		30 SEP	30 SEP	31 DEC	Management comments
Assets (NOKm)	2021	2020	2020	Equity Liabilities (NOKm) 2021 &		2020	2020
Goodwill	956	688	728	Share capital	443	387	388
Customer contracts	331	249	276	Treasury shares	-2	-5	-8	• Goodwill and customer relationships
Research development &	104	78	82	retained earnings Reserves and	763	508	431	represent NOK 1,287 million per September 2021 and more than 50% of
Deferred tax assets	18	23	15	ECIT shareholders share of Equity	1 204 ,	890	811	the total assets.
Intangible assets	409 1 ,	038 1 ,	101 1 ,
				Non-controlling interest	197	191	161	The increase in both goodwill and •
Land buildings and equipment ,	54	71	70	Total equity	401 1 ,	081 1 ,	972	customer relationship to previous periods
Right-of-use assets	230	186	194					can be explained by acquisitions,
Tangible assets	284	257	264	liabilities Lease	163	138	139	whereas the Norian Group acquisition in
				Borrowings (interest bearing)	157	125	117	April 2021 represent a significant increase
Other financial assets	66	30	17	Provisions	29	34	47	compared to previous periods.
Other receivables interest bearing ,	40	52	56	Other non-current liabilities	7	0	0
receivables Other	11	9	2	Deferred liabilities tax	73	51	60	The increase in ECIT AS shareholders •
Total non-current assets	1 810 ,	1 386 ,	1 440 ,	liabilities Total non-current	430	349	363	share of Equity can mainly be explained
Inventories	15	11	11	Lease liabilities	76	55	62	by the capital increase in connection
Trade receivables	295	216	288	Borrowings (interest bearing)	32	3	21	with the listing of ECIT AS.
receivables interest bearing Other ,	16	21	21	Provisions	8	19	32
receivables Other	114	70	101	Tax payables	31	37	38	• Non-controlling interest represent the
Cash and cash equivalents	248	292	246	Trade payables	101	74	98	value of minorities share of net assets
Total current assets	688	611	667	Deferred income	39	30	35	and customer relationship.
				Dividend	4	1	134
Total assets	2 498 ,	997 1 ,	2 107 ,	liabilites Other current	378	349	352	• Earn out liabilities are classified as
				liabilities Total current	667	567	772	"Provisions" in the balance sheet (holds
								a short- and long term part).
				Equity and liabilities	2 498 ,	1 997 ,	2 107 ,

Condensed statement of changes in Equity

(NOKm)	Share Capital	Not reg. Capital increase	Share premium	Treasury shares	Retained earnings	Total	Non controlling interests	equity Total
Equity at 1 January	388	4	371	-8	55	811	161	972
Profit for the year	0	0	0	0	30	30	34	64
differences recognized in Net exchange 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	55	16	356	0	0	426	0	426
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 , customer contracts	0	0	0	0	0	0	16	16
Addition of non-controlling interests , net assets	0	0	0	0	0	0	12	12
Transactions of shares with non-controlling interests	0	0	0	0	-62	-62	-24	-87
adjustments Other	0	0	-25	0	4	-21	0	-21
Total transactions with shareholders	55	16	331	6	-31	376	-3	373
Equity end of period	443	20	702	-2	41	1,204	197	1,401

• The increase in 'share capital' is mainly related to the IPO of ECIT AS.
• Movements in 'Sale and purchase of treasury shares' are mainly related to treasury shares used for payment of acquisitions.
• 'Addition of non-controlling interests, customer contracts and net assets' are increasing when ECIT acquire companies.
• 'Acquisition and disposal of shares from/to non-controlling interests' are related to transactions with minority shareholders when utilizing option agreements.
• The IPO transaction costs recognized in equity are related to the capital increase.

Shareholder structure

Shareholder overview – Top 20*

	Total	Ownership	Voting
	Shares		Share
CGL Holding AS CGL Holding AS (Peter Lauring)** II & II	42 336 068 , ,	9 6%	49 9%
Varner Kapital AS	25 000 000 , ,	5 6%	3 1%
Services Ic 2 As	24 422 ,535 ,	5% 5	0% 3
Paradigm Capital Management , Inc	23 ,560 000 ,	3% 5	2 9%
Mikkel Walde Holding ApS	15,525 ,182	3 5%	1 9%
Y-Not Aps	14 865 253 , ,	3 4%	1 8%
Anglo Supply As	11,942 933 ,	7% 2	5% 1
Pensjon Pk Mp	10 622 ,154 ,	2 4%	3% 1
Bras Kapital As	10 ,147 ,171	2 3%	1 2%
Veiby Invest As	6 ,566 389 ,	5% 1	8% 0
Fidelity Management Research Co LLC &	6 009 440 , ,	4% 1	0 7%
Deka Investment GmbH	5,900 000 ,	1 3%	0 7%
Equity Loe As	4 ,713 ,545	1% 1	6% 0
Infolink Holding As	4 ,503 248 ,	0% 1	0 6%
Litu As	4 261 491 , ,	1 0%	0 5%
Sverige Pa Kompetens Lön Ab	3 912 895 , ,	9% 0	5% 0
Mathiesen Holding Af 2018 P H Aps	3 821 965 , ,	0 9%	0 5%
Sewell As	3 625 ,198 ,	0 8%	0 4%
UBS AG (Private Banking)	3 605 ,131 ,	0 8%	0 4%
Job Gruppen As	3 ,577,598	0 8%	0 4%
Total	228 918 ,196 ,	51.7%	72 4%
Other shareholders	214 087 038 , ,	48 3%	27 6%
of Total number shares	443 005 234 , ,	0% 100	0% 100

Shareholder per investor type

	Shares	Shares
	(Nom T)	(%)
Board Board of directors & within Employees Partners the Group & External investors	80 759 , 193 313 , 166 945 ,	18 2% 6% 43 37 7%
Treasury shares Total number of shares	1 988 , 443 005 ,	0 4% 100 0%

Shareholder per country

Shareholders country per	Shares (Nom T)	Shares (%)
Norway	294 142 ,	66 4%
Denmark	85 676 ,	3% 19
United States	29 569 ,	6 7%
Sweden	19 936 ,	4 5%
Germany	937 5 ,	3% 1
Other***	745 7 ,	7% 1
of Total number shares	443 005 ,	0% 100

*) Excluding 3.903.078 treasury shares **) CGL Holding II AS: 36,484,940 shares, CGL Holding AS: 4,951,128 shares, Peter Lauring: 900,000 shares. Adjusted for Peter Lauring's maximum voting right of 49.9% according to ECIT's articles of association ***) Other consists of Switzerland, United Kingdom, France, Finland, Estonia, Ireland, Argentina, Poland, Lithuania and the Netherlands