Arribatec Group ASA

Investor Presentation • Dec 15, 2020

Company Presentation

Per Ronny Stav 15 December 2020

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"Administrative and operational control through innovative use of technology"

Arribatec Solutions

• Arribatec is a Software & Consulting company headquartered in Oslo with a global «playground»
• Founded in 2015 by CEO Per Ronny Stav
• Delivering next generation Postmodern ERP Solution as a Service (SolaaS)
• Strong partners combined with own IP offering
• Experienced management team with proven international track record
• Admin & Management platform to scale
• Aim to take an active role in developing IT companies through acquisition and integration
• Innovation driven and Cloud ready

Growth story with significant traction

…M&A activities last 3 months

Acquisition details

Source: Source:

	Cash	No of Shares	Revenue '20	ARR end '20	EBITDA '20
Innit AS	50.000'	5.600'	75.000'	55.000'	5.000'
Microsky	1.500'	3.500'	18.000'	11.500'	1.000'
Facil	0	12.423'	500'	3.000'	-1.000
Qualisoft	45.000'	15.000'	67.000'	12.000'	11.000'
InfoShip (Gruppo IB)	17.000'	0	60.000'	*	*

* We have a call option in January 2021 and there is an ongoing demerger of an industry division, so it's not possible to give exact figures for the remaining business. We have a good understanding of the expected revenue, pipeline and the cost level from 2021 onwards.

Legal Structure

OUR MARKET

• *The worldwide ERP market projected to reach \$78 billion by 2026
• *The global system integration market size is expected to reach USD 582.5 billion by 2025, at a CAGR of 11.7%
• We also operate within the BI & Analytics, EAM, Hospitality, Cloud Services, BPM etc.

* Grand View Research, Inc.

Defining "Next Practice"

Solution as a Service (SolaaS)

• Solution as a Service
  • SaaS Implemented & Integrated
• Deliver on a Postmodern ERP Cloud strategy
• Cost-efficient and sustainable Governance model
• Very interesting and scalable Business Model
  • Margins & Internationally

Source: Source:

Value proposition for customers

SOLUTION AS A SERVICE – CUSTOMER CASE

Source: Source: • Currently 15 Research Institutes in Norway

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• First solution consisting of Unit4 ERP Finance, Unit4 Time & Expenses and Arribatec InstiPro, Arribatec Integration Engine, Arribatec Cloud Solutions
• Upselling potential within HR, Payroll, Procurement, BI, BPM, etc.
• Taking the entire solution internationally

What are we doing?

BUSINESS PROCESS MANAGEMENT & ENTERPRISE ARCHITECTURE

SOLUTION PROVIDER

Own & 3-rd party Solutions

• Unit4 | Xledger | Rambase
• Arribatec Digital Platform
• Certify & Facil
• InfoShip – EAM
• Qualiware
• Hypergene / PowerBI
• Monitoring

Source: Source:

SYSTEM INTEGRATOR

Integration & Domain competence

• Integration Strategy
• Integration Platform
• System- and domain competence
• Monitoring

IT CONSULTING

System, Integration, Cloud

• System implementation
• Digitalization
• AI
• Change Management
• Cloud strategy
• Change Management

Highly scalable business model

Source: Source:

Technological development allows expansion into new verticals, driving new geographical opportunities, which in turn drives further customer growth Customer growth drives technological requirements, which are then developed organically or inorganically, which again allows for new expansion opportunities

DPA – The Pillars

DEVELOPING

Innovation / own solutions

Driving internal innovation Solution Development AI – Artificial Intelligence Automation Transforming from Services to Solutions

INNOVATION

Source: Source:

PARTNERING

«best-in-class 3rd party solutions»

Added-value solutions Strong market position & potential Time-to-market Margin vs investments

VALUE-ADD

ACQUIRING

Tech / Solution / Competence

Added value solutions with potential Time-to-market vs own innovation Rational "multiples" See potential in Arribatec

SCALING

BALANCING INTERNAL INNOVATION, VALUE CREATION AND SCALING OPPORTUNITIES

Growth paths

Source: Source:

ORGANIC GROWTH

• Cross selling & Up selling
• Extending SolaaS Solution offering
  • Innovation & packaging
• Geographical expansion
  • Singapore, UK, France, Holland
• New strategic partnership
• Innovation new solutions (own IP)

«INORGANIC GROWTH»

• Acquisition of Operational Software
  • Extending SolaaS Solution offering
• Complementary domain competence
• Extending capacity & innovation
• Geographical footprint

Extend solution- and service offering (SolaaS) and increase own IP

M&A Strategy

EARLY STAGE TECH

Early Tech Companies with own IP Potential not yet "taken out" New lines of business / verticals

Best-of-breed and complementary solutions

Services & Solutions

Extend current SolaaS offering

ERP CENTRIC CLOUD SOLUTIONS

Cloud infrastructure & competence

Cost efficient Hybrid Cloud

Cloud architecture

COMBINED POSITIVE EBITDA

M&A Strategy

• Good management
• Can initially operate independently
• Operational synergies & scalability
• International potential
• Change ready organization

• Transformation

• Services & solutions to SolaaS

• ERP centric & complementary operational and vertical
• Increase the relative part of the solution delivered as SolaaS with own IP/Software

Historical & Projected Financials

• E2020 is reflecting minor consolidation of the first acquisition
• E2021 represents the "speed" we have into 2021 based on the entire group after the acquisitions announced and subject to successful DD & calling options
  • Innit | Microsky | Facil
  • Qualisoft | Gruppo IB
• Proforma Run rate into 2021
  • Revenue NOK 425 mill.

  • ARR NOK 150 mill.

Source: Source:

• Positive EBITDA All figures in Million NOK

Source: Source:

	2015	2016	2017	2018	2019	E2020	E2021
Revenue	7,0	24,3	43,8	74,4	117,7	157,0	425,0
Annual Recurring Revenue (ARR)	0,0	0,0	0,0	3,0	13,0	48,0	149,5
EBITDA	0,9	3,7	1,0	5,1	8,5	10,5	*38,0
Customers			+60	+130	+180	+300	+400
Employees		28	41	69	90	160	300
Countries		4	7	8	9	11	14

* Operational EBITDA prior to eventual one-off effects related to the reverse takeover of Hiddn, M&A activities etc.

Employee & geographical expansion

• Constant growth in no of employees
• Extended competence and capacity
• Established companies in Singapore, UK, Netherland
• Offices in Italy, Cyprus, US M&A
• Good balanced cost/competence
  • Poland, Spain, APAC under dev.

• Knowhow and solutions to give full administrative and operational control

  • Quality, responsibility

• High level of inter company trade

  • Sourcing competence and capacity from low-cost to Nordics and US

Geographical revenue split

• Stabile growth in Norway and Europe
  • Several new SolaaS projects under implementation
• US showing strong growth after slow start in Q1 and heavy hit by COVID in Q2

• Europe Strong international growth

• Several new large contracts signed with Stock Listed Companies in southern Europe

• France new and promising country under development

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"Administrative and operational control through innovative use of technology"

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