Huddlestock Fintech

Investor Presentation • Feb 25, 2021

Company Presentation

2020 and beyond

February 25, 2021

Important information and disclosures at the end of this presentation

We enable the Wealth Tech industry to become digital

Saving time and cost while improving customer quality

Industry overview

Huddlestock overview

Financials

Highlights in 2020

Corporate Actions

Commercial

• Listing on Oslo Stock Exchange Euronext Growth Market
• Successful acquisition of 100% of Huddlestock Systems in Germany
• Successful Capital increase in November
• CFI.Co awarded Best FinTech IPO Nordics 2020
• Nominated to Technology Innovator Award by Corporate Vision
• Listed on Börse Munchen Gettex in Germany
• Qinfen is completed and will provide a digital and versatile investment universe
• Finished core wealth tech platform
• Bedrock and Apex stage 1 launched with BNP Paribas January 20 2021 – stage 2 to be announced by BNP Paribas
• New contracts:
  • Signed partnership with MHX in Malaysia
  • LOI with large European bank
  • Baader Bank in Germany
  • Pecunia GmbH first asset manager to join Apex Platform
  • Partnership with Donau Capital on Bedrock B2B
  • Partnership with Tradegate Exchange on Bedrock B2B

Profit (loss) statement (unaudited)

Consolidated income statement (in NOK 1000)	2020	2019
Operating income
Other operating income	225	0
Total operating income	225	0
Operating expenses
Personnel costs	432	704	Wages
Other operating expenses	8,267	5,000
Total operating expenses	8,699	5,704	Mostly software
Operating profit (loss)	-8,474	-5,704	development costs, listing cost and capital
Financial income			increase cost
Interest income	9	1
Other financial income	142	2
Total financial income	151	3
Financial expenses
Interest expenses	39	11
Other financial expenses	33	5
Total financial expenses	72	17
Net financial items	79	-14	The Group has entered into a Share Purchase Agreement with
Net profit (loss) from discontinued operations	-4,033	-2,955	Opera Financial Technologies Limited on 22 September 2020
Profit (loss) before tax	-12,428	-8,672	regarding the sale of all issued
Income tax	0	0	shares in Dovre Forvaltning UAB
Net profit (loss)	-12,428	-8,672

Balance sheet (unaudited)

Consolidated Financial position (in NOK 1000)	2020	2019
ASSETS
Intangible assets
Research and development	19,308	15,789
Licences	45,952	5,459
Total intangible assets	65,260	21,248
Total non-current assets	65,260	21,940
Receivables
Trade receivables	-	1,340
Other short-term receivables	1,089	1,370
Total receivables	1,089	2,710
Bank deposits, cash and cash equivalents	2,958	11,336
Net assets discontinued operations	2,233	0
Total current assets	6,280	14,046
Total assets	71,541	35,986

Consolidated Financial position (in NOK 1000)	2020	2019
Equity
Paid-in capital
Share capital	208	143
Share capital - not registered	0	19
Own shares	0	0
Share premium	72,445	7,940
Share premium- not registered	0	17,232
Total paid-in capital	72,653	25,334
Retained earnings
Other equity	-5,480	6,962
Total retained earnings	-5,480	6,962
Non-controlling interest	-	290
Total equity	67,173	32,587
Liabilities
Short-term liabilities
Accounts payable	1,532	857
Payroll taxes, VAT etc.	169	87
Other short-term liabilities	2,455	2,456
Total short-term liabilities	4,157	3,399
Net liabilities discontinued operations	211	-
Total liabilities	4,367	3,399
Total equity and liabilities	71,541	35,986

Agenda

Huddlestock overview

Highlights in 2020

Huddlestock overview

Financials

A digital breakthrough for custodian banking in symphony with wealth management. The partnership provides for superior and cost-effective client services through the Apex and Bedrock solutions

8

Huddlestock: Three key Pillars

Proving to be investing and trading - what PayPal is for payments

• World-class Fintech with multiple awards and recognition in the industry
• Contract with BNP Paribas a key industrial validation of our know-how and technology for custody banking.
• Contract with MHX Group in Malaysia launching in April 2021 with BNP Paribas Platform.

• Recurring revenue in the attractive Wealth Tech segment secures future cash flow. Short path to profitability
• Huddlestock has contracts and Letters of Intent with a strong pipe-line

World Class Technology Contracts Strong Shareholder Value Creation

• Scalable digital business model and supportive industry trends in Wealth Tech
• Strong pipeline
• Listing of shares on Oslo Børs Euronext Growth Market
• Potential M&A activity strong technology position makes the company an attractive partner for strategic initiatives

Company structure

Holding company based in Stavanger

100%

Huddlestock Technologies AS Huddlestock Asia SDN BHD

• 100% owned daughter in the Group
• Norwegian company that owns the intellectual property and technology
• Is responsible for development and customisation

100%

Huddlestock Systems GmbH

• 100% owned daughter in the Group
• Investment services and investment activities license held through Huddlestock Systems GmbH, which allows passporting within the EU

100%

• 100% owned daughter in the Group
• Huddlestock Asia owns Huddlestock SDN BHD 30%

30%

Huddlestock SDN BHD

• Partner with MHX Group
• Operating company for Malaysia
• Connectivity project Utilising the Huddlestock/BNP platform
• Live April 2021

High quality shareholders base

Rank	Investor	Holding no. of shares	Stake, %
1	Euroclear Bank S.A./N.V.	21,333,746	19.5%
2	VISION INVEST STAVANGER AS	8,151,715	7.4%
3	RETROPI LIMITED	7,707,608	7.0%
4	BERKER GROUP AS	6,847,189	6.2%
5	GRUNNFJELLET AS	5,310,000	4.8%
6	GENTLE INVEST AS	3,846,300	3.5%
7	HUDDLE AS	3,242,622	3.0%
8	E HOLDING AS	3,013,395	2.7%
9	SAA INVEST AS	2,662,513	2.4%
10	HOGNAN INVEST AS	2,494,512	2.3%
11	STEIN HEGRE HOLDING AS	2,400,000	2.2%
12	SAAMAND AS	2,071,494	1.9%
13	GJEDREM AS	2,035,623	1.9%
14	VALINOR AS	1,563,852	1.4%
15	BILL INVEST AS	1,536,847	1.4%
16	GJEDREM HOLDING AS	1,346,187	1.2%
17	STOKK INVESTERING AS	1,315,790	1.2%
18	SIRIUS AS	1,140,000	1.0%
18	PEBRIGA AS	1,129,541	1.0%
20	PLATAA VENTURE AS	1,096,013	1.0%
21	Nordea Bank Abp	1,021,587	0.9%
22	NORDNET LIVSFORSIKRING AS	964,900	0.9%
23	ALA AS	913,395	0.8%
24	KRISTIANS AND AS	885,000	0.8%
25	SANDNES INVESTERING AS	844,000	0.8%
Total Top 25		84,873,829	77%
Total		109,668,729	100%

Management and the Board of Directors in total own 40% of shares

HUDL: Share price development since listing in November

Huddlestock has invested approximately NOK 100m since 2014. The funding has come from both institutional and individual investors, along with public grants from institutions like Innovation Norway and "Skattefunn".

Management The Board of Directors

John E. Skajem CEO

John E. Skajem is the Chief Executive Officer of Huddlestock Fintech AS. John E. joined Huddlestock with a long carrier and experience from the financial industry. Over the years John E. has gained a thorough understanding of all aspects of the financial services industry. John E. has hands on experience from Investments Banks, Asset Managers to large global universal banks with management position while working in Chicago, NYC, London, Paris, and Oslo.

Peter van Kleef CEO of Huddlestock Systems GmbH

Peter van Kleef is co-founder of Huddlestock Systems GmbH which developed Huddlestock's B2B platform for BNP Paribas. Peter has extensive experience in the asset management industry having initiated and supervised numerous large scale projects in the asset management and banking industry.

Øyvind Hovland Chairman

Øyvind is a serial entrepreneur with more than 20 years of experience in starting and scaling companies in various industries. Notably Cyviz AS – with offices globally, and Vision Io AS, a leading optic camera provider to the Oil Murshid is an Executive Director and co-founder of Huddlestock. He is a PhD candidate in Economics, and holds a master's degree from Grenoble Ecole de Management, and a degree from NTNU. He has almost a decade of experience as an entrepreneur, primarily within the energy and financial industry.

Murshid Ali

Member

Per Øyvind Berge Member

Per Øyvind is an investor and entrepreneur in Norway, founding PXO, Quickflange and other successful companies. He has more than 20 years of experience from developing businesses and growing companies in various industries. He holds a Bachelor's degree in Financial Management from BI Business School.

and gas industry.

Company Human Resources

A digital and commercial opportunity for custody banks, asset managers and investors

Through Qinfen, a private label solution based on the Apex platform, asset managers can access and offer BNP customers a flexible, professional and future ready digital interface.

Revenue model: BNP Paribas

Custody bank solution

Asset-based

• Huddlestock will receive fees from Asset Under Management (AUM) managed on the platform
• Through BNP Germany, Huddlestock expects to add EUR 20bn in AUM in 3-4 years
• BNP Paribas' infrastructure is global and allows Huddlestock to offer its solution to a broad base of clients
• Lower customers' acquisition costs thanks to BNP references
• Opportunity to increase significantly revenues globally with little incremental costs

* Average expected fee applied in the calculation depending on the volume

** Indicative numbers and analysis

Bedrock is an out of the box trading platform

Gives you direct market access to a universe of 12,000 equity instruments and countless financial products

Revenue model: Baader Bank

Transaction-based

• Huddlestock will receive a certain agreed fee per transaction
• Baader Bank is expected to become the second largest contract after BNP Paribas
• Trading connectivity contracts have major revenue potential at little additional cost

Revenue model: FXX and SXX contracts (not disclosed names)

250 000 FXX contract (projected # of trades per month)

Revenue model: FXX contract Revenue model: SXX contract

* Indicative numbers and analysis

Total projected revenues by contract

* Indicative numbers and analysis

Financials

Huddlestock overview

Financials

Profit (loss) budget: 2021-2024

Profit (loss) statement (EUR)	2021	2022	2023	2024
Revenues	1,663,176	5,712,584	11,350,674	17,479,706
Total expenses	888,000	1,724,700	2,080,260	2,317,375
Salaries	685,000	1,447,500	1,764,000	1,953,735
Other administrative expenses	128,000	151,200	183,960	218,358
Other fixed costs	75,000	126,000	132,300	145,282
EBITDA	775,176	3,987,884	9,270,414	15,162,331
EBITDA margin	47%	70%	82%	87%
Depreciation	43,153	48,610	53,702	55,855
Net financials	-7,500	-10,000	-10,000	-10,000
Pre-tax profit	724,523	3,929,275	9,206,712	15,096,476
Taxes	159,395	864,440	2,025,477	3,321,225
Net profit	565,128	3,064,834	7,181,235	11,775,251
Net profit margin	34%	54%	63%	67%

Comments

• These forecasts reflect only contracts with a higher degree of certainty signed in 2020/2021
• No revenues included from our prospective future pipeline
• Given strong future contracts pipeline, we see upside potential in figures for the forecasted period
• Capitalised technology development costs is minimal, mostly expensed
• Huddlestock is now beyond the largest investment period and most of the various technologies have been completed
• Thus a large part of future profits will be Free cash flows, making us a self-financing company

Contacts

John E. Skajem CEO +47 4188 7412 jes@huddlestock.com

Øyvind Hovland Chairman +47 9096 6151 oh@huddlestock.com

Disclaimer

This presentation has been prepared by Huddlestock Fintech AS (the Huddlestock) solely for the use of presenting the company. 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.

This presentation speaks only as of their date, and the views expressed are subject to change based on a number of factors, including, without limitation, macroeconomic and equity market conditions, investor attitude and demand, the business prospects of the Huddlestock and other specific issues. This presentation and the conclusions contained herein are necessarily based on economic, market and other conditions as in effect on and the information available to the Huddlestock as of their date. This presentation does not purport to contain a complete description of the Huddlestock or the market(s) in which the Huddlestock operates, nor do they provide an audited valuation of the Huddlestock. The analyses contained in this presentation are not, and do not purport to be, appraisals of the assets, stock or business of the Huddlestock or any other person. Moreover, this presentation is incomplete without reference to, and should be viewed and considered solely in conjunction with the oral briefing provided by an authorised representative of Huddlestock in relation to this presentation.

The Huddlestock strongly suggests that each Recipient seeks its own independent advice in relation to any financial, legal, tax, accounting or other specialist advice. In particular, nothing herein shall be taken as constituting the giving of investment advice and this presentation are not intended to provide, and must not be taken as, the exclusive basis of any investment decision or other valuation and should not be considered as a recommendation by the Huddlestock (or any of its affiliates) that any Recipient enters into any transaction. This presentation comprises a general summary of certain matters in connection with the Huddlestock. This presentation does not purport to contain all of the information that any Recipient may require to make a decision with regards to any transaction. Any decision as to whether or not to enter into any transaction should be taken solely by the relevant Recipient. Before entering into such transaction, each Recipient should take steps to ensure that it fully understands such transaction and has made an independent assessments of the appropriateness of such transaction in the light of its own objectives and circumstances, including the possible risks and benefits of entering into such transaction.

This presentation has been provided to the Recipients on the basis that each Recipient and such Recipient's representatives, directors, officers, employees and professional advisers keep this presentation (and any other information that may be provided to such Recipient) confidential. This presentation (and any other information which may be provided to any Recipient) may not be disclosed, in whole or in part, or summarized or otherwise reproduced, distributed or referred to, in whole or in part, without the prior written consent of the Huddlestock. The information used in preparing this presentation was obtained by the Huddlestock and its representatives from public sources and is subject to change without notice. Neither the Huddlestock nor any of its affiliates assumes any responsibility for the independent verification of any such information and has relied on such information being complete and accurate in all material respects. Neither the Huddlestock nor any of the affiliates (nor any of its or their respective directors, officers, employees, professional advisers or representative) makes any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of such information, this presentation (including, without limitation, any opinion contained therein), any of their contents or any of the results that can be derived from this presentation. Without limiting a person's liability for fraud, no responsibility or liability (whether in contract, tort or otherwise) is or will be accepted by the Huddlestock or any of its affiliates or any of its or heir respective directors, officers, representatives, employees, advisers or agents) as to, or in relation to, this presentation, its contents, the accuracy, reliability, adequacy or completeness of the information used in preparing this presentation, any of the results that can be derived from this presentation or any written or oral information provided in connection therewith (including, without limitation, any responsibility or liability (i) in relation to the distribution of possession of this presentation in any jurisdiction or (ii) for any loss or damage of any kind whatsoever arising as a result of the use or misuse of this presentation) and any such responsibility, liability or obligations is expressly disclaimed, except to the extent that such responsibility, liability or obligations cannot be excluded by law. Analyses and opinions contained herein may be based on assumption that, if altered, can change the analyses or opinions expressed. No audit of this presentation has been undertaken by an independent third party.

Disclaimer

Any statement, estimate or projections included in this presentation (or upon which any of the conclusion contained herein are based) with respect to anticipated future performance (including, without limitation, any statement, estimate or projection with respect to the condition (financial or otherwise), prospects, business strategy, plans or objectives of the Huddlestock and/or any of its affiliates) may prove not to be correct. No representation or warranty is given as to the completeness or accuracy of any forward-looking statement contained in this presentation or the accuracy of any of the underlying assumptions. Nothing contained herein shall constitute any representation or warranty as to the future performance of the Huddlestock, any financial instrument, credit, currency rate or other market or economic measure. Information about past performance given in this presentation is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. Neither the Huddlestock not any of its affiliates has verified the achievability of any estimate or forecast of future financial performance contained herein (including, without limitation, any estimate of potential cost savings and synergies, nor of any of the methods underlying the preparation of any such estimate of forecast.

The Huddlestock does not accept or will not accept any responsibility, duty of care, liability or obligations for providing any Recipient with access to additional information, for updating, modifying or otherwise revising this presentation or any of their contents (including, without limitation, any estimate or forecast of future financial performance), for correcting any inaccuracy in this presentation or their contents (or any other written information or oral information provided in connection therewith) which may become apparent, or for notifying any Recipient or any other person of any such inaccuracy.

This presentation shall not be construed as a prospectus or an offer to sell, or a solicitation of an offer to buy, any security or any business or assets, nor to enter into any agreement or contract with any Recipient, the Huddlestock (or any of their respective affiliates) or any other person. Any potential transaction that may be related to the subject matter of this presentation will be made pursuant to separate and distinct documentation and in such case the information contained herein will be superseded in its entirety by such documentation in final form. This presentation do not create any obligation on the part of the Huddlestock to consider any offer from any Recipient or any other person. The Huddlestock reserves the right, without prior notice and without giving reasons, to vary or terminate the contemplated transaction, to reject any or all proposals and/or to negotiate with any Recipient or any other person and any terms (and whether individually or simultaneously with any other person or persons) with respect to any transaction involving the Huddlestock.

An investment in the Huddlestock involves risk, and several factors could adversely affect the business, legal or financial position of the Huddlestock or the value of its securities. An investment in the Huddlestock is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of their investment.

This Presentation speaks as at the date set out on its front page. Neither the delivery of this Presentation nor any further discussions of the Huddlestock or the Managers with the Recipient shall, under any circumstances, create any implication that there has been no change in the affairs of the Huddlestock since such date. Neither the Huddlestock nor the Managers assume any obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation (including in relation to forward-looking statements).

The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice.

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