Huddlestock Fintech

Investor Presentation • Feb 21, 2025

Q4 2024

Fourth quarter results presentation | February 21, 2025

Øyvind Hovland, Chairman of the Board Leif Arnold Thomas, Group CEO

Empowering modern financial services

We enable any company to launch new investment services or transform existing ones

• -
  • Consulting revenue increased 23% from a seasonally low third quarter 2024 in the consulting industry expected revenue contributions during in Q1 2025
• • Reduction of Other OPEX to NOK 6.4 million vs. NOK 7.7 million
  • Personnel cost increase to NOK 17.4 million vs. NOK 14.7 million, mainly related to settling of year-end accounts
• finance through better vendor solutions, advisory, and software development • Signed IaaS agreements with two Norwegian asset managers, with
• Progressing with accelerated market entry into Germany, with local partner Tradevest, to meet growing demand for digital financial solutions

Subsequent events

• Investment Fund of Denmark (EIFO)

Q4 2024 Q4 2024 development

Assets under Administration

End-clients Number, EOP (IaaS KPI)

Fortifying Nordic market position in 2023 … 1

• Acquisitions of Trac, Dtech and Bricknode adding complementary licenses, products, and services to the IaaS platform
• Divested F5IT, accounting for NOK 13.4 million of reported 2023 revenue, to create a best of breed IaaS technology platform
• Strong revenue growth with majority related to the acquisitions
• Focus on technology platform integration and R&D
• Appointed new management effective from Q1 2024

… with established focus areas for 2024 … 2

• ☑ Continued profitable consultancy business
• ☐ Unlocking growth in Investment-as-a-service (IaaS) business through technology and platform integration
• ☑ Pursuing accelerated market entry into Germany
• ☐ Short-term ambition to become EBITDA-positive

3

Ongoing work to identify potential financing partners to support strategy including non-organic growth

… 2025 focus across three-pillar strategy

Revenue development 2022-2024 Consulting (Visigon) Investment-as-a-Service (IaaS)

1. Reported 2023 total revenue was NOK 85 million. "2023 excl. F5IT" is the 2023 total revenue excluding revenue from the F5IT which was divested in 2023 for comparability to the 2024 revenue.

Focus on portfolio optimization, resource efficiency, and long-term value creation across three distinct business areas

Our customers Financial products and services companies

Incumbents

Competitive pressures and evolving client demands rapidly evolving; New products and features, more personalization and seamless digital and hybrid experiences.

• Access to distribution network for technology
• Higher immediate revenue gains
• Higher customer acquisition costs

Startups

New investment services requires complex and resource heavy work; Acquiring licenses, developing user experiences and establishing compliance processes

• Lower immediate revenue gains
• Lower customer acquisition costs

Ongoing work to unlock growth potential in Investment-as-Service

Quarterly IaaS revenue development and drivers

2024, NOK million

Investors served through customers

Assets under Administration NOK bn under management

Potential for a collective entry into a large German market Agreement

• Huddlestock has consolidated and developed Nordic technologies and organizations to form the leading end-to-end Investment-as-a service platform
• Tradevest is a German fintech company focused on developing AIdriven solutions for trading and investment management
  • Providing brokerage and custody solutions
• AVL is a leading financial broker in the discount segment
  • Legacy dating back to 1997
  • 60,000+ end customers
  • NOK ~20 billion in assets under administration

Similar market dynamics to the Nordics defined by more investors, evolving preferences and more investment platforms

Consultancy firm bridging the gap between IT and finance.

Leading Calypso experts in Denmark and Sweden with extensive experience since 2003

Growing company with 21 consultants and offices in Copenhagen and Stockholm

2024 revenue of SEK 40 million with a corresponding EBITDA-margin of 14%

New growth strategy initiated

NOK million

Acting to capitalize on shifting dynamics in the IT Services industry

- Niche consultancy business purely in the Nordics

• Full-service provider including managed outsourced services
• Broader segment market reach with European reach
• A broad suite of services addressed to the same segments
• Increasing share of recurring revenue

Managed services – Scalable IT Solutions for Financial Institutions

Application Management & Support Hosting Solutions Business Process Outsourcing • Seamless system performance • Application lifecycle management • Incident response • Performance optimization • Purpose-made cloud infrastructure for capital markets and treasury operations • Regulatory compliance and 24/7 availability • Free up internal resources through outsourcing of key financial processes • Example: Trade execution and regulatory reporting • Visigon delivers a Software-as-a-Service Treasury-system to EIFO in partnership with Nasdaq Financial Technologies

• Reducing IT complexity and risk

- Extended its existing agreement with the Export and Investment Fund of Denmark (EIFO)

• Annual recurring revenue with potential for additional consulting services

Financial review

Revived revenue growth and improving EBITDA in Q4 2024

Profit and loss

Unaudited, NOK million

	Q4 2024	Q3 2024	Q4 20231
Total operating income	18.0	15.5	22.6
Cost of materials/subcontractors Personnel costs	0.0 -17.4	0.0 -14.7	2.7 -18.6
Other operating expenses EBITDA	-6.4 -5.8	-7.7 -6.9	-14.8 -8.0
Depreciation, impairment and amortisation	-12.6	-12.4	-28.6
EBIT	-18.4	-19.2	-36.7
Net financial items	-0.7	-1.4	-4.5
Result before tax	-19.1	-20.6	-41.2
Net result	-17.3	-19.8	-41.1

1. Includes contributions from the divested F5IT (Huddlestock Solutions)

2. Positive revenue development driven by increases in both Consulting and IaaS revenue compared to last quarter

3. Personnel costs increase if NOK 2.7 million related to settling of year-end accounts,
   • NOK 1.5 million Swedish accounting principles and remaining from settling of year-end accounts in UK and Germany
4. Reduction in Other operating expenses of NOK 1.3 million
5. Improved EBITDA both compared to last quarter and the same quarter last year
6. Net result of negative NOK 17.3 million significantly improved compared to Q4 2023

Fourth quarter cash flow

• Cash flow from operations reflects a profitable Consultancy business and an IaaS-business with high growth potential
• Investments represents net additions in intangible assets related to technology development
• Financing reflects proceeds from private placement in October, obtained loans and repaid loans
• Cash position of NOK 11 million at period-end
• Ongoing work to identify potential financing partners to support strategy including non-organic growth

Q&A

Øyvind Hovland Chairman of the Board

Leif Arnold Thomas CEO

Appendix

Consolidated income statement

Consolidated income statement
Unaudited, in NOK
	Q4 2024	Q3 2024	QoQ	Q4 2023	YoY	12M2024	12M2023	YoY
Operating income
Other operating income	17,983,006	15,538,083	16 %	22,559,177	-20 %	71,509,146	85,150,101	-16 %
Total operating income	17,983,006	15,538,083	16 %	22,559,177	-20 %	71,509,146	85,150,101	-16 %
Operating expenses Cost of materials/subcontractors	0	0	0 %	2,718,832	-100 %	0	-457,150	-100 %
Personnel costs	-17,355,259	-14,694,738	18 %	-18,566,333	-7 %	-63,949,879	-75,304,819	-15 %
Other operating expenses	-6,439,361	-7,697,895	-16 %	-14,756,613	-56 %	-29,601,821	-25,801,808	15 %
Total operating expenses	-23,794,620	-22,392,633	2 %	-30,604,114	-163 %	-93,551,699	-101,563,778	-8 %
EBITDA	-5,811,614	-6,854,550	-15 %	-8,044,937	-28 %	-22,042,554	-16,413,677	34 %
Depreciation, impairment and amortisation	-12,625,755	-12,360,865	2 %	-28,614,934	-56 %	-49,167,948	-63,973,602	-23 %
EBIT	-18,437,370	-19,215,415	-4 %	-36,659,871	-50 %	-71,210,502	-80,387,279	-11 %
Financial income
Interest income	537,183	39,196	1271 %	674,957	0 %	589,454	790,434	-25 %
Other financial income	9,811	27,537	-64 %	90,056	-89 %	283,213	329,879	-14 %
Total financial income	546,994	66,733	720 %	765,012	-28 %	872,667	1,120,313	-22 %
Financial expenses
Interest expenses	-1,201,785	-1,070,803	12 %	-1,430,605	-16 %	-3,708,520	-2,696,548	38 %
Other financial expenses	-15,264	-385,244	-96 %	-3,844,364	-100 %	-584,804	-5,165,920	-89 %
Total financial expenses	-1,217,049	-1,456,046	-16 %	-5,274,969	-77 %	-4,293,324	-7,862,468	-45 %
Net financial items	-670,054	-1,389,314	-52 %	-4,509,956	-85 %	-3,420,657	-6,742,156	-49 %
			-7 %					-14 %
	-19,107,424	-20,604,729		-41,169,827	-54 %	-74,631,159	-87,129,435
Result before tax Income tax Net result	1,777,361 -17,330,063	803,041 -19,801,688	121 % -12 %	56,880 -41,112,948	3025 % -58 %	2,303,146 -72,328,012	805,539 -86,323,896	186 % -16 %

Consolidated statement of financial position

Unaudited in NOK
	31.12.2024	31.12.2023
Non-current assets
Intangible assets Research and development	51,454,136	58,138,522
Goodwill	104,641,819	116,449,291
Technology	14,183,057	18,515,698
Customer contracts and relations	7,866,151	14,171,778
Licenses Total intangible assets	21,033,546 199,178,709	28,469,988 235,745,276
Fixed assets
Investment in subsidiaries	0	0
Loan to group companies Investment in equities	0 354,915	0 322,719
Property, plant & equipment	201,133	199,483
Total fixed assets	556,048	522,201
Total non-current assets	199,734,757	236,267,478
Current assets
Receivables		0
Trade receivables	10,056,880	11,347,040
Other short-term receivables Total receivables	4,028,022 14,084,902	5,952,937 17,299,977
Bank deposits, cash and cash equivalents	10,941,146	10,183,903
Total current assets	25,026,048	27,483,880
	224,760,805	263,751,358

	31.12.2024	31.12.2023
Equity
Paid-in capital
Share capital	441,886	350,957
Own shares	-14	-5,335
Other paid-in capital	0	0
Capital increase not registered	0	13,561,756
Share premium	255,684,903	180,377,457
Total paid-in capital	256,126,775	194,284,835
Other equity
Capital Reserves	0	0
Other equity	-106,990,969	-38,548,773
Total other equity	-106,990,969	-38,548,773
Total equity	149,135,806	155,736,062
Liabilities
Long-term liabilities
Other long-term liabilities	12,021,222	675,778
Deferred tax	5,584,159	8,144,578
Total long-term liabilities	17,605,381	8,820,356
Short-term liabilities
Accounts payable	4,768,199	6,661,053
Payroll taxes, VAT etc.	8,331,637	8,422,709
Loans and borrowings	24,935,217	19,336,874
Other short-term liabilities	19,984,565	64,774,304
Total short-term liabilities	58,019,618	99,194,940
Total liabilities	75,624,999	108,015,296
Total equity and liabilities	224,760,805	263,751,358

Consolidated statement of cash flows

Consolidated statement of cash flows
Unaudited in NOK
	Q4 2024	Q3 2024	2024	2023
Profit/loss before tax	-19,107,424	-20,604,729	-74,631,159	-87,129,435
Depreciation and amortisation	12,625,755	12,360,865	49,167,948	63,973,602
Changes to accounts receivable	3,402,224	-330,735	1,290,160	-527,235
Changes to accounts payable	2,214,840	-328,684	-1,892,854	-2,870,269
Changes to other accruals and prepayments	-894,094	-557,595	2,353,296	2,724,101
	-1,758,698	-9,460,877	-23,712,608	-23,829,236
Net cash flow from operating activities from operating activities
Net additions intangible assets & Property, plant & equipment	-2,260,738	-3,107,667	-10,769,985	-51,045,929
Aquisition/sale of subsidiaries, net of cash aquired	0	0	0	41,608,429
Net cash flow from investment activities from investment activities	-2,260,738	-3,107,667	-10,769,985
Proceeds from capital increase	4,254,602	9,901,298	14,155,900
Costs of capital increase	0	0	0
Treasury shares	0	0	1,660,000	-9,437,501 22,500,000 0 6,307,579
Loans obtained	734,985	4,441,229	21,968,238	12,531,000
Repayment of loans	-510,527	-1,143,970	-2,544,301	-791,777
Net cash flow from financing activities from financing activities	4,479,060	13,198,557	35,239,837	40,546,802
Net changes to cash and cash equivalents from continuing operations	459,624	630,013	757,243	7,280,066
Bank deposits, cash and cash equivalents start of period	10,481,523	9,851,510	10,183,903	2,903,838

Disclaimer 1/2

This presentation has been prepared by Huddlestock Fintech AS (the Huddlestock) solely for the use at the presentations to investors held in connection with the presentation of the past results of the certain period and anticipated future performance. 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. 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Disclaimer 2/2

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Huddlestock Fintech AS Kanalsletta 2, 4033 4005 Stavanger Norway