Arribatec Group ASA

Earnings Release • Feb 28, 2022

1

Q4 – 2021 presentation

Agenda

Q4 – Financial performance

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1

2

4

Organization & Integration

Appendixes

Highlights Q4

3

• Q4 revenue at NOK 116m - growth of 91% y/y - best quarter in the Company's history
• Adjusted EBITDA -0.9m and EBITDA at -4.5m.
• Signed and closed the acquisition of Integra Associates, UK
• NOK 55 million in new ERP and EA&BPM contracts
• Announced change of CEO as of January 1, 2022

Quarterly Revenue Development

Highlights full year 2021

• 2021 revenue increased 169% to 414m from NOK 154 in 2020
• Recurring revenue grew 420% to 146m – recognized for the full year
• EBITDA for the full year was negative NOK 6.8m, which compares to -45.3m in 2020 (2020 figure includes IFRS cost for reverse take-over of Hiddn)
• Adjusted* EBITDA for full year 2021 of NOK -1.6m
• The financial results have been achieved in parallel with the following operational activities;
  • o Acquisition of 4 companies for a combined price of NOK 162m (excl. potential earn-out)
  • o Integrated 7 acquired companies with operations in Norway, Italy, UK, Cyprus, US and Germany
  • o Moved 6 of the acquired companies to our cloud infrastructure, Integra will be moved in Q2.
  • o Installed and implemented common CRM system globally for all entities
  • o Upgraded and rolled-out our ERP system to 70% of all staff globally, remaining will be done within Q2/3
  • o Common management system, including work-flow description implemented globally
  • o Streamlined and described common product development process globally
  • o Planned for and configured group wide tool for resource planning across all entities – roll out started Q1/22
  • o New corporate strategy developed and rolled out

Year-on-Year development

By Region

• 169% y/y growth in revenue
• Relative size of the regions stable from 2020 to 2021
• For 2022 we expect Europe to grow faster than the two other regions

Quarterly EBITDA Development

Financial performance affected by:

• M&A
• Integration of acquired entites
• Move all units to our Cloud
• CRM/sales support roll-out
• ERP roll-out
• Common mgmt. system roll-out
• Common product dev. process
• GDPR compliance group wide
• Implementing ISO 27001 for BA Cloud
• Sales force growth
• Increased management capacity

Balance sheet development

Cash flow

Equity Development

Structure & Performance

Organizational structure and performance

Our 5 business areas

Our business proposition

Business Services is focusing on ERP, BI & Analytics, DevOps, Integrations, research management

• Integra Associates, UK integrated in this BA as of Q4 increases our global delivery capacity significantly
• French operation continues to grow, new projects won for ERP implementations and SaaS
• Impacted by COVID through Q4
• Sees a solid demand for platform solutions with single vendor taking responsibility for the end-to-end solution.

Enterprise Architecture & Business Process Management

• Strong growth and traction in the market
• Many new large strategic customers added
• Increased the organization with 50% over the last two months – expect additional 30+ new hires 2022
• Process for quick deployment of new employees in place
• Doubling the size of Stavanger office
• We are getting consistently positive reviews and additional business from large existing customers:

Cloud Solutions – hybrid, Azure, Splunk, GDPR

• Majority of revenue is recurring revenue
• Strong potential to cross sell industry agnostic
• ISO 27001 certification in process to be completed Q1- 2022
• Over the last three quarters of 2021, Arribatec has deployed and implemented 25 Unit4 ERP customers on Arribatec's Private Cloud.
• Centralized Group internal IT on own infrastructure
• Supporting entire group with IT services and Uni4 ERP Cloud solutions
• Relocating the datacenter in Bergen to Oslo & Hamar for ease of operation and cost saving

Software solutions to the hospitality industry

• Still investing in products and market penetration
• Increased development capacity to support demand and scale
• Hiring additional staff to secure capacity to deliver / rollout solutions
• Delivered the first Self-check-in solution outside of Norway in Q4

In Q1 2022

• signed up 5 hotels in Dubai for implementation of Certify – international break-through
• LOI signed with Apple as the only tech provider to deliver digital access cards to hotels in Europe as in Apple Wallet

Software solutions to the maritime sector - InfoShip Asset Management and Performance

• New Global Head of Business Area Marine, Agostino Fiorentino appointed in January 2022.
• Signed NOK 13m contract with large LPG customer in Q1-22. Part of scope already delivered in 2021.
• Developed and deployed a new Hotel Defect Management System for MSC Cruises – still large potential remaining
• Continues to invest in product and market development
• Several larger LOI's under discussion
• Actively cross selling with the other Business Areas in Arribatec – BA Hospitality for cruise industry
• Restructuring regulations lifted in Italy after year end 2021. Will adjust cost base in 2022.

Corporate

• Investments in Corporate systems is tapering off solid base for controlled and profitable growth and expansion established
• Per Ronny Stav in his new role is dedicating 100% of his time on global business development – visible effects already
• 70% of global staff on same internal U4 ERP platform.
• Moved to new headquarter at Økern Portal in February 2022. Co-locating three offices in Oslo into one.

Group Management Group Finance Group HR Group IT

Corporate functions

Appendix Financial Figures

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Profit & Loss

		For the quarter end		Year to date
		31 Dec	31 Dec	31 Dec	31 Dec
NOK thousand	Note	2021	2020	2021	2020
Revenue	3	115 977	60 814	413 938	154 024
Materials, software and services		(25 037)	(9 390)	(92 859)	(17 609)
Gross profit		90 941	51 424	321 079	136 415
Salary and personnel costs		(80 292)	(32 312)	(272 679)	(99 143)
Cost from reverse takeover		O	-56 822	O	(56 822)
Other operating expenses		(15 184)	(15 516)	(55 201)	(25 710)
Total operating expenses		(95 476)	(104 650)	(327 879)	(181 674)
EBITDA		(4 535)	(53 226)	(6 800)	(45 259)
Depreciation and amortization		(20 087)	(3 440)	(42 970)	(7 240)
EBIT		(24 622)	(56 665)	(49 770)	(52 499)
Financial income	4	(279)	673	3 625	1247
Financial expense	4	(1972)	(1288)	(7 515)	(2 945)
Profit/(loss) before tax		(26 873)	(57 280)	(53 660)	(54 197)
Tax expense		4 069	(712)	4 718	(1424)
Profit/(loss) after tax attributable to equity holders of the parent company		(22 804)	(57 992)	(48 942)	(55 620)
Earnings per share: basic	10	(0.04)	(0.19)	(0.10)	(0.18)
Earnings per share: diluted	10	(0.04)	(0.19)	(0.10)	(0.18)

Balance Sheet

31 Dec 31 Dec NOK thousand Note 2021 2020 ASSETS Non-current assets 7 445 Property, Plant and equipment 3 258 6 30 266 Right-of-use assets 20 768 6 Goodwill 205 279 93 827 Customer relations 6 46 031 13 145 Other Intangible assets 6 65 047 18 310 Other non-current assets 10 678 Deferred tax assets 9 488 2 436 374 235 Total non-current assets 152 689 Current assets Trade receivables 76 309 32 956 Other receivables 2 290 22 090 Contract assets 19 549 9 948 Inventory 3 179 2 439 32 685 Other current assets 2746 Cash and cash equivalents 43 758 188 270 177 771 Total current assets 258 448 TOTAL ASSETS 552 006 411 137		Year to date
			945

	Year to date
	31 Dec	31 Dec
NOK thousand Note	2021	2020
EQUITY AND LIABILITIES
Equity
Paid in capital
9 Issued capital	163 773	117 203
Other paid in capital	196 700	194 510
Total paid in capital	360 473	311 713
Other equity
Other reserves	398	8
Other equity	(44 449)	4 493
Total other equity	(44 050)	4 501
Total equity	316 423	316 214
Non-current liabilities
7 Interest bearing loans	27 902	1344
6 Lease liabilities	19 148	15 500
Other non-current financial liabilities	તે જિલ્લાના એક ગામનાં લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામનાં મુખ્યત્વે ખેત-ઉપયોગ વિદ્યારત તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામનાં લોકો	0
Deferred tax liabilities	17 113	0
Provisions	14 371	0
Total non-current liabilities	78 630	16 843
Current liabilities
7 Short term financial liabilities	9 523	7 046
Current lease liabilities 6	12 346	7 125
Accounts payable and other current liabilities	21227	23 966
Contract liabilities	21 483	1 283
Current tax payable	1076	3 596
Other current liabilities	91 297	35 064
Total current liabilities	156 953	78 080
Total liabilities	235 583	94 923
TOTAL EQUITY AND LIABILITIES	552 006	411 137

Cash flow

		For the quarter end		Year to date
		31 Dec 31 Dec		31 Dec	31 Dec
NOK thousand	Note	2021	2020	2021	2020
Operating activities
Profit/(Loss) before tax		(26 873)	(58 704)	(53 660)	(55 620)
Taxes paid		0	(598)	(982)	(1 196)
Adjustments for:
- Calculated cost from reverse takeover		0	56 822	0	56 822
- Finance income and expense	4	2 252	615	3 892	1 698
- (Increase)/decrease in trade receivables		734	3 229	(6 874)	1328
- (Decrease)/increase in trade payables		3 823	5 184	(13 257)	6 088
- Depreciation and amortization	5, 6	16 728	3 440	39 611	7 240
- Impairment losses on intangible assets	5	3 359	0	રૂ રૂચિત્ર	0
Change in other current accounts		6 698	(21750)	1 713	(17 369)
Net cash flows operating activities		6 722	(11 762)	(26 198)	(1 009)
Investing activities
Cash received through business combination	7	7 890	34 741	29 857	34 741
Cash consideration Investment in subsidiaries	8	(16 569)	(59 942)	(118 299)	(59 942)
Capitalized development costs and tangible assets	5	(12 258)	(2 639)	(27 416)	(12 548)
Interest received		113	236	212	236
Net cash flows investing activities		(20 824)	(27 605)	(115 647)	(37 514)
Financing activities
Proceeds from borrowings		8 603	5 472	24 325	5 472
Change in overdrafts		(495)	(11 096)	(7 946)	(3 821)
Repayment of debt		(657)	(1179)	(3 006)	(1179)
Interest paid		(1321)	(253)	(2 507)	(755)
Instalments lease liabilities		(6 367)	0	(13 293)	0
Other changes in equity		0	(1 110)	O	(1 110)
Proceeds from shares issued		0	234 107	0	234 954
Share issue costs		(57)	(12 891)	(600)	(12 891)
Net cash flows financing activities		(294)	213 051	(3 028)	220 671
Net change in cash and cash equivalents		(14 396)	173 684	(144 873)	182 149
Cash and cash equivalents at beginning of period		56 111	14 585	188 270	6 121
Currency translation		2 043	0	361	0
Cash and cash equivalents at end of period		43 758	188 270	43 758	188 270

Equity

		Equity related to the shareholders of the parent company
	Restricted
	Share	Treasury	Other paid		Exchange Retained earnings and	Total
NOK thousand	capital	shares	in capital	differences	profit for the year	Equity
Balance on 1 January 2020	2 589	(312)	16 286	(52)	3 291	21802
Result of the period					(55 620)	-55 620
Comprehensive income for the period				60		60
Total comprehensive result for the period	0	0	0	60	(55 620)	(55 561)
Treasury shares acquired		(276)				(276)
Other equity transactions			(834)			(834)
Issue of share capital in Arribatec AS	847		83 824			84 670
Reverse take over reclassification of Arribatec AS	(3 436)	288	2 848			O
Reverse take over Arribatec Solutions ASA	91 204		(64 614)		56 822	83 412
Capital Increase employees offer, Nov	2 800		6 600			9 400
Capital increase repair issue, Nov	9 199		21 684			30 884
Capital increase, Private placement Dec	14 000		96 000			110 000
Cost of share issue			(12 891)			(12 891)
Share consideration relating business combinations - shares to be issued in 2021			45 607			45 607
Closing balance on 31 December 2020	117 203	O	194 510	8	4 493	316 214
Balance on 1 January 2021	117 203	0	194 510	8	4 493	316 214
Result of the period					(48 942)	(48 942)
Comprehensive income for the period				390		390
Total comprehensive result for the period	O	O	O	390	(48 942)	(48 551)
Other equity transactions			(2 870)			(2 870)
Share consideration relating to business combination 2020 (Facil, Microsky and Innit)			(45 607)			(45 607)
Capital increase related to business combinations	11 628		74 929			86 557
Conditional share consideration relating to acquisition of Integra - shares to be issued during 2022 and 2023			11 281			11 281
Capital increase related to merger with subsidiary Arribatec AS	34 941		(34 941)			O
Share issue cost			(600)			(600)
Closing balance 31 Dec 2021	163 773	0 O	196 700	398	(44 449)	316 423

Time series for main numbers

		Q4 2021	ૂરૂ ઉ 2021	Q2 2021	Q1 2021	Q4 2020	ર્જિ 2020	Full year 2021	Full year 2020
Revenue	TNOK	115 977	94 361	104 427	99 173	60 814	26 728	413 938	154 024
Gross profit	TNOK	90 941	71260	82 435	76 444	51 424	24 281	321 079	136 415
EBITDA	TNOK	(4 535)	(13 893)	1783	9845	(53 226)	659	(6 800)	(45 259)
Adjusted EBITDA	TNOK	(905)	(13 261)	2 231	10 334	6 910	659	(1601)	14 877
Operating profit/(loss), EBIT	TNOK	(24 622)	(21969)	(6 215)	3 036	(56 665)	(1011)	(49 770)	(52 499)
Net profit/(loss)	TNOK	(22 804)	(19 655)	(7 088)	606	(57 992)	(1247)	(48 942)	(55 620)
Revenue growth y/y for the quarter/full year	%	90.7 %	253.0 %	240.9 %	176.7 %	na	na	168.7 %	35.5 %
Gross profit margin	96	78.4 %	75.5 %	78.9 %	77.1%	84.6 %	90.8 %	77.6 %	88.6 %
EBITDA margin	96	(3.9 %)	(14.7 %)	1.7 %	9.9 %	(87.5 %)	2.5 %	(1.6 %)	(29.4 %)
Adjusted EBITDA margin	96	(0.8 %)	(14.1 %)	2.1 %	10.4 %	11.4 %	2.5 %	(0.4 %)	9.7 %
Earnings per share	NOK	(0.039)	(0.041)	(0.016)	0.001	(0.190)	(0.014)	(0.100)	(0.182)
Cash at end of period	TNOK	43 758	56 111	78 586	91 525	188 270	14 585	43 758	188 270
Equity	TNOK	316 423	328 523	349 266	356 874	316 214	25 066	316 423	316 214
Equity ratio	రిక	57.3 %	65.5 %	67.3 %	68.0 %	76.9 %	24.7 %	57.3 %	76.9 %
Price per share at end of reporting period	NOK	1.180	1.486	1.708	1.830	2.040	2.136	1.180	2.040
FIEs	Number	373	349	311	290	171	118	373	171
No. of outstanding shares, beg. of period	Number	584 903 064	455 112 929	440 112 929	418 583 331	89 908 757	89 908 757	418 583 331	16 077 403
New shares issued	Number	O	129 790 135	15 000 000	21 529 598	328 674 574	O	166 319 733	402 505 928
No. of outstanding shares, end of period	Number	584 903 064	584 903 064	455 112 929	440 112 929	418 583 331	89 908 757	584 903 064	418 583 331
Average number of shares	Number	584 903 064	473 926 431	449 508 533	408 112 328	305 239 615	89 908 757	489 277 730	305 239 615

What we deliver

Business Services	Cloud	EA-BPM	Marine	Hospitality
Services/Solutions	Services/Solutions	Services/Solutions	Services/Solutions	Services/Solutions
SolaaS/SaaS ERP Implementation BI & Analytics System Integration Customization Software Development DevOps	Deployment of SolaaS/SaaS Cloud service Outsourcing Security Azure Data Lakes DevOps Device Management	SolaaS/SaaS Enterprise Architecture Business Process Mng Process Automation Compliance & Security GDPR RPA Business Mng Systems Business Process Syst.	SolaaS/SaaS System Implementation System Integration Technical deployment	SolaaS/SaaS Implementation Integration Deployment Azure AWS Device Management
Products	Products	Products	Products	Products
Unit4 ERP	Azure	Qualiware	InfoSHIP ASSET	Holographic Solution
Hypergene PowerBI	AWS Google	Boson	InfoSHIP Quality InfoSHIP ELB	Housekeeping Software
Arribatec Research Management	Private Cloud		InfoSHIP Planning	Self-service check in/out

InfoSHIP Performance

• GDPD / ISO / Risk
• Splunk
• MS 365

Arribatec Integration

Platform

| ONE scalable Solution for the Maritime Industry^

InfoShip is a cloud solution which comprises a wide range of modules that can run as stand-alone or all together. A highly scalable and

Q4 Reporting Arribatec Group ASA

Geir Johansen – Group CEO

Oslo 28 February 2022

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