Volue ASA

Investor Presentation • Nov 13, 2020

Third quarter 2020 financial results

13 November 2020

Strictly private and confidential || Strictly Private & Confidential

Disclaimer

This presentation has been produced by Volue AS (the "Company" or "Volue") exclusively for information purposes. This presentation is confidential and may not be reproduced or redistributed, in whole or in part, or disclosed by any recipient, to any other person. To the best of the knowledge of the Company and its board of directors, the information contained in this presentation is in all material respect in accordance with the facts as of the date hereof, and contains no material omissions likely to affect its import.

This presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and its subsidiaries and/or the industry in which the Company operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Neither the Company nor any of its subsidiaries or any such person's officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to any actual results.

An investment in the Company involves risk, and several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this presentation, including, among others, risks or uncertainties associated with the Company's business, segments, development, growth management, market acceptance and relations with customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation.

The information in this presentation speaks as of the date hereof. The Company does not intend, and does not assume any obligation, to update or correct the information included in this presentation. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its subsidiaries or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. By attending or receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business.

The contents of this presentation shall not be construed as legal, business or tax advice, and the furnishing of this presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisers. Prospective investors should consult its own legal, business or tax advisor as to legal, business or tax advice.

This presentation has been prepared for information purposes only, and does not constitute or form part of, and should not be construed as, any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity.

This presentation is subject to Norwegian law and any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo district court as legal venue.

Q3 Highlights

Revenues NOK 209 million 10 % growth from Q3 2019

Adjusted EBITDA NOK 50 million 24 % margin, improved from Q3 2019

Recurring revenues NOK 132 million 10 % growth from Q3 2019

Cash balance NOK 169 million¹ Improved from operational activities

Financial results Operations and sales

• Sales closing above targets for the period
• Good market outlook entering Q4 and 2021
• Signed major contract with EnBW in Q3
• Limited operational impact by COVID-19 pandemic
• Accelerated integration efforts joining up sales and operations

Subsequent events

• Volue named key innovator by the European Commission
• Listing on Merkur Market and private placement with gross proceeds of NOK 500 million
• Purchase of minority shares in subsidiaries of Volue AS

1) Cash balance, ex restricted cash. Due to prepayments from customers cash balance is reduced from previous quarter

Volue - Realising the future of energy

https://vimeo.com/455734115?ref=em-v-share

Volue in brief: A leading supplier of software and technology solutions for the energy, power grid and infrastructure markets

Volue is active in three segments

Help customers master the energy transition by enabling end-to-end optimisation of the green energy value chain

LTM sales	NOK 449m	LTM sales
(% of total)	(51%)	(% of total)
Recurring revenue share (2020)	65%	Recurring revenue share
Degree of EU Taxonomy alignment	HIGH	Degree of EU Taxonomy

Enable power distributors to support electrification of society by unlocking flexibility and digital management of the power grid

LTM sales	NOK 234m	LTM sales
(% of total)	(27%)	(% of total)
Recurring revenue share (2020)	59%	Recurring revenue share
alignment	HIGH	Degree of EU Taxonomy

Deliver flexible capabilities for digital water management and help automate processes and machines for the construction industry

LTM sales	NOK 189m
(% of total)	(22%)
Recurring revenue share (2020)	58%
alignment	HIGH

Volue aims for OSE listing in H1 2021

1

3 Company prepares for OSE listing in H1 2021

Attracting a broader investor market base important for Volue over time. The company is believed to have the right metrics for being listed on OSE

Listing on Merkur Market was important milestone for further growth to accelerate structural and organic growth

Key developments in Q3

Market activities

Growth outside of Europe – a mid to long term ambition

• Closed contracts in the US on Analytic services, delivered on Volue SaaS-platform
• Further market expansion based on scalable SaaS offerings

Major SaaS contract with EnBW in Germany

• Software as a service contract (SaaS) with EnBW, one of the four largest German utilities
• Creates foundation for further development of SaaS offerings for Scheduling and Nomination solutions

Infrastructure market

• Ongoing digitalisation in the infrastructure construction industry gives good market outlook
• Recent digital conference with over 550 participants for the Scandinavian market

Volue intraday cloud

• Unique value offering on Volue intraday cloud creates good market attention. 420 participants from more than 200 companies at digital launch event

Operations

• New management for Volue's Lines of Business in place
• On track for launching Volue as one brand primo 2021
• Minor M&A activity in Q3 with acquisition of Meventus Aps to strengthen danish operations within Industrial IoT business

Financial results for the third quarter 2020

Financial highlights

	Comments
Financial highlights (NOKm)	Q3 2020	Q3 2019	30.09.2020	30.09.2019	LTM	driven by European expansion
Revenue	209	189	652	599	872
Gross margin	81%	78%	83%	85%	84%
Adjusted EBITDA1	50	39	143	136	184
Adjusted EBITDA margin	24%	21%	22%	23%	21%
EBITDA	40	30	119	116	147
EBITDA margin	19%	16%	18%	19%	17%	closing above targets
						compared to 2019
Cash balance at the end of the period2	280	163	280	163	280
Recurring revenue growth (%)	10%	NA	10%	NA	12%
Recurring revenue (% of revenue)	63%	64%	62%	62%	62%
SaaS revenue growth (%)	24%	NA	30%	NA	32%	results
Saas revenue (% of revenue)	16%	14%	15%	13%	15%
R&D CAPEX (NOKm)	20	17	59	56	76
R&D CAPEX (% of revenue)	10%	9%	9%	9%	9%

• Strong revenue growth in Q3 2020 on 10 % driven by European expansion
• Strong contribution from the Energy segment with 15 % growth in Q3
• Still limited impact from Covid-19 with good order intake and growth in Q3 2020
• Growth in recurring revenues through sales closing above targets
• YTD growth rates significantly improved compared to 2019
• Adjusted EBITDA margin in Q3 improved
• Personnel + other OPEX growing lower than revenue, scale advantages will increase margin levels going forward
• Cost related to IPO partly included in Q3 results
• Improved EBITDA margins for all segments
• R&D capitalisation stable around ~10%

1) EBITDA adjusted for non recurring items

2) Including restricted cash

Step change in revenue growth and highly sticky customer base

Step change in revenue growth expected ~0 customer relations lost due to replacement

1) Cancelled yearly value of recurring revenue divided by revenue. Mergers and bankruptcies the main churn generators

Accelerating shift towards SaaS and recurring revenue

1) Recurring revenues is defined as revenue from subscriptions over a year

2) SaaS revenue is defined as revenue from software hosted by Volue and distributed through web applications

Industry developments and strategy

Cleaner energy pressuring the infrastructure

Trends Challenges Solutions Key enabler Grid instability MW Volatile markets € Smart grids Intelligent markets € \$ \$ € £ £ ¥ Conventional Renewable Centralised Decentralised Fixed Occasional End-to-end optimisation Grid congestion 0

Volue's business-critical digital solutions enable the green shift

Software spending from the power sector to reach USD 5bn by 2025 (60% up vs. today), fuelled by the green energy shift

Source: Bloomberg New Energy Finance 1) Does not include coal and geothermal

Growing share of green, non-controllable power sources increases the complexity in the European energy markets

Increase in non-controllable production sources, with production changing in seconds

Few and expensive storage or switch-off alternatives

…making the process to optimise production and trading exponentially more complex

Real time decision making requires new software tools

Source: Arkwright

Example from the new reality: Penalties paid in the balancing market can be extreme if failing to re-position in the intra-day market

Example: Market prices in Finland, week 8 2020

Shift towards real time = increased volatility

Volue offers a comprehensive product and service portfolio, covering all aspects of the clean energy value chain

Significantly simplifying access and interaction for all actors ü

All services mentioned above are mainly delivered on a cloud platform, underlining the SaaS transformation as well underway ü

Addressing the shared customer segment across Volue's business units - opens significant cross-sales opportunities ü

1) Selected services from Volue system already delivered on a cloud platform

Large international client base a testament to Volue's high-quality offering

Recent significant strategic contract wins

Significant value creation potential demonstrated for customers adopting business-critical solutions from Volue

1) Revenue gain for customers up to 5% pre-Volue establishment. Given the benefits from Volue's wall-to-wall offering, this gain is expected to increase by additional 5 percentage points

Integrated SaaS offering covering the whole value chain

Real-life example – Volue trading platform

Volue's successful Gemini SaaS platform illustrates the potential from the transition towards a cloud-based model

Outlook and 2021 priorities

Summary: Solid position for profitable growth and expansion

Ongoing SaaS-transformation with solid growth in recurring revenues and an uptick in EBITDA margins 3

Volue offers wall-to-wall SaaS solutions and has already built up a customer base comprising the leading European energy companies

The shift towards green, non-controllable energy sources drives increased volatility and complexity for customers, requiring dynamic and cloud-based software solutions

2

Ambitions to create a ~ NOK 2 billion revenue company by 2025

Mid to long term ambitions

M&A strategy

Priorities and ambitions for Q4 and 2021

• Increased effort on sales and marketing activities
• Accelerate growth in ARR through SaaS transformation
• Structural growth Take lead position in market consolidation 3

• Utilise synergies in Volue group to increase operational efficiency

• IPO message related to revenues and margin outlook:

• Q4 2020 revenue growth in line with YTD 2020
• Reach NOK 1bn in run-rate sales during 2021
• EBITDA-margins of high teens (%) in 2020 and slightly above 20% in 2021

Appendix

Financial and operational information

Group P&L and KPIs

					LTM
					872
40	36	41	108	92	143
169	181	148	544	506	729
81%	83%	78%	83%	85%	84%
93	98	77	307	279	424
26	31	32	94	92	120
50	52	39	143	136	184
24%	24%	21%	22%	23%	21%
11	14	8	24	20	37
40	39	30	119	116	147
19%	18%	16%	18%	19%	17%
17	15	15	48	46	64
23	24	15	71	69	84
11%	11%	8%	11%	12%	10%
(4)	(4)	(2)	(5)	(6)	(7)
19	20	14	66	63	77
14	4	3	20	14	17
5	16	11	46	49	60
33	5	(8)	39	(25)	13
38	21	3	85	24	73
	Q3 2020 209	Q2 2020 217	Q3 2019 189	30.09.2020 652	30.09.2019 599

Group financial performance Comments

• Strong revenue growth in Q3 2020 on 10 % driven by European expansion
• Strong contribution from the Energy segment with 15 % growth in Q3
• Still limited impact from Covid-19 with good order intake and growth in Q3 2020
• Growth in recurring revenues through sales closing above targets
• YTD growth rates significantly improved compared to 2019
• Adjusted EBITDA margin in Q3 improved
• Personnel + other OPEX growing lower than revenue, scale advantages will increase margin levels going forward
• Cost related to IPO partly included in Q3 results
• Improved EBITDA margins for all segments
• R&D capitalisation stable around ~10%

Balance sheet

Balance sheet (NOKm)	Q3 2020	Q2 2020	Q3 2019	Full year 2019	Balance sheet (NOKm)	Q3 2020	Q2 2020	Q3 2019	Full year 2019
Assets					Liabilities and equity
Deferred tax asset	8	4	7	4	Equity	417	395	382	365
Other intangible assets	130	96	92	92	Total Equity	417	395	382	365
Goodwill	147	146	142	146
Tangible fixed assets	150	130	113	142	Deferred tax liabilities	17	11	12	4
Pension assets	13	15	21	19	Leasing obligations	105	106	103	52
Other receivables	0	30	1	53	Other long-term debt	9	9	0	75
Total non -current assets	449	422	376	456	Total non - current liabilities	132	126	115	132
Inventory	16	15	9	9
Contract assets	52	103	0	75	Loans	3	2	28	69
Accounts receivable and other receivables	220	129	214	189	Accounts payable	92	20	13	121
Cash and cash equivalents	280	325	163	238	Tax payable	18	3	1	9
Financial assets held for trading	10	10	10	10	Other current liabilities	364	495	282	313
Held for sale operations	0	121	185	142	Obligations discontinued business	0	84	136	112
Total current assets	578	702	581	664	Total current liabilites	478	603	461	624
Total assets	1,027	1,124	958	1,120	Total liabilities and equity	1,027	1,124	958	1,120

Balance sheet

Cash flow statement

Cash flow statement

Cash flow statement (NOKm)	30.09.2020	30.09.2019
Profit before tax from continuing operations	46	49
Depreciations	48	46
Net finance	5	6
Tax expense	20	14
Change in inventory, accounts receivable, contract assets and accounts payable	-77	-121
Change in net other current assets and other operating items	65	116
Net cash flow from operating activities	106	111
Interest received	7	4
Purchase of property, plant and intangible assets	-68	-26
Proceeds from the sale of shares in subsidiaries	61	1
Net cash flow from investing activities	0	-22
Net cash flow from financing activites	-64	-111
Change in cash and cash equivalents	42	-22
Cash and cash equivalents opening balance	238	185
Cash and cash equivalents closing balance	280	163

1) Investments in R&D is included in profit before tax from continuing operations

Energy

34 |

Power Grid

1) Segment EBITDA adjusted for non-recurring items

35 |

Infrastructure

36 |

Alternative performance measures

Basis for preparation

This presentation provides financial highlights for the quarter for Volue. The financial information is not reported according to the requirements in IAS 34 and the figures are not audited.

Alternative performance measures

Volue AS presents alternative performance measures as a supplement to measures regulated by IFRS. The alternative performance measures are presented to provide better insight and understanding of operations, financial position and the basis for future developments.

The definitions of these measures are as follows:

Alternative performance measures

EBITDA - Profit/loss before tax, net finance cost, depreciation, amortization and impairment.

EBITDA adjusted - In order to give a better representation of underlying performance, the following adjustments are made to EBITDA:

• Special items: items that are not part of the ordinary business, such as IPO related costs

EBIT - Profit/loss before tax and net finance cost.

Net interest-bearing debt - Total interest-bearing debt, less interest-bearing receivables and cash.

Equity ratio - Total equity divided by total assets.