Arribatec Group ASA — Investor Presentation 2021

Aug 26, 2021

1

Q2 – 2021 presentation ^

| Agenda ^

Q2 Financial performance

Organization & Integration

4

1

2

3

Appendixes

\ Highlights Q2 ^

• Revenue at NOK 104.4m solid growth of 241% y/y organic growth of 36%
• Recurring revenue of NOK 37.8m is NOK 32.8m higher than Q2 2020
  • Growth of 671% compared to last year and 22% higher than Q1-2021
  • Strong growth despite delay in recognition according to underlying contracts
  • Strong growth internationally
• EBITDA of NOK 1.8 m lower than Q1 due to strong focus on continued growth, integration and organizational alignment
• Shared service center established in Poland to create a scalable and costefficient internal support center
• Continued to hire to secure capacity for backlog and future growth

\ Q2 - large contracts won ^

MSC Cruises

Strategic deal for Arribatec Marine

Value € 2,7 million + services

Tieto EVRY

Strategic deal for Arribatec EA-BPM

Value + NOK 17 million

SKANSKA

Strategic deal for Arribatec BI & Analytics

Value several million NOK over 3 years*

*not to be disclosed

EXPLEO

Strategic deal for Business Services

Global roll-out of Uni4 ERP

Major service contract, but the amount can not be disclosed

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| Integration & Focus ^

Strong focus on integration of the acquired companies, and intensified recruitment to deliver on backlog!

• New Global Organization

• Systems & Processes • Private Cloud

Organisation • Cross-Selling / Upselling

• Sales

Integration Products Rebranding Expansion

• New ARM Version
• AI Voice Beta
• Version • New InfoSHIP
• version • Timesheet
  • Solution

…..

• Bringing the entire group together

• Simplify Value Proposition

• Established subsidiaries:

  • France, Dubai, Holland, Singapore
• Recruitment

| Snapshot Financials - Q2-21 vs Q2-20 ^

Revenue +241%

Adj. EBITDA -27%

Recurring Revenue +671%

NOK 104.4m vs 30.6m NOK 2.2m vs 3.0m NOK 37.8m vs 4,9m +22% growth from Q1 2021

36% Organic growth in "Old Arribatec"

| Revenue share & Growth - Q2-21 vs Q2-20 ^

By geography:

72m / 306% Share & Growth 25m / 159% Share & Growth

7m/ 130% Share & Growth

| Q2 Performance ^

| Balance sheet development ^

| Equity Development ^

| 2. Organization & Integration ^

Integration of the acquired companies

| Arribatec Group ^

| How we have organized our business ^

MS 365

| Our business proposition ^

| Global presence ^

• Norway | Oslo | Stavanger | Kristiansand | Bergen | Hamar | Sandefjord | Lillehammer
• Sweden | Stockholm | Gothenburg
• Denmark | Copenhagen
• UK | London | Leicester | Manchester

Italy	Milan Rapallo Pontinia
Spain	Madrid Granada Barcelona San Sebastian
Belgium	Vosselaar

Germany	Leer
---------	------

Poland | Wroclaw

Cyprus | Limassol

USA | Colorado | Florida

UAE | Dubai

Singapore | Singapore

| Business Areas ^

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| Business Services ^

• 36% Organic growth compared to same quarter last year
• Strong growth in Europe and US
  • Resource utilization cross boarder
• Continued investment in methodology to deliver SolaaS efficiently
• ERP as the principal solution and "hub" for One Solution
• Strengthen partnership with Unit4 Globally
• Extended SolaaS offering to the Research Institutes with HR & Payroll
• New version of Arribatec Research Management Solution deployed successfully
  • Including a brand new timesheet solution (plans to also be sold as standalone)
• Moved DevOps team out of Innit and to Business Services
• Moved support function to SPOC Support Center in BA Cloud

| Cloud ^

• Strong growth including ARR
• Extended Private Cloud capacity and "brought" Arribatec into our own Cloud infrastructure
• In process of moving many customers of other group companies from 3rd party Cloud providers
• Platform ready to deliver Cloud services throughout the Arribatec Group of companies
• Established SPOC Support Center for One Solution
• Implemented new Support System and rolled out globally
• Working towards ISO 27001 certification

| EA & BPM* ^

• Highly competent and committed organization
• Very strong growth with several strategic wins during the quarter
• Large back-log and more manpower required hired 18 new this year 40% growth
• Transferring Cloud solutions from 3rd party providers to Arribatec Cloud
• Plans initiated for development of own complementary solution (within EA&BPM)
• Expands to Sweden by building a business unit there under Arribatec Solutions AB
  • Advance dialog with several large and interesting prospects
  • Qualiware has a large customer base and can serve as a platform
  • Transforming Swedish Arribatec consultants to EA&BPM consultants

| Marine ^

• Pipeline increased with € 6 million over the last 6 months
• Several strategic contracts signed serving as a solid platform to take a strong position in the maritime sector
• Several pilot and proof-of concept project delivered, which we expect will transform into new large contracts coming months
• COVID still causing challenges to roll-out and invoice/recognize the revenue
• Partnership with Honeywell, Inmarsat etc to strengthen our value proposition and to deliver holistic solutions to our customers

\ InfoSHIP – Performance ^

• Control Room Cyprus
• Own & Customer specific
• Route planning
• Fuel Optimization
• Environmentally friendly
• Signed strategically deals
• Many additional in process

| Hospitality ^

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• Promising pipeline first contracts signed
• Webinar in Singapore and response 61 hotels/25 000 rooms
• LOI signed with Drivers Home SolaaS self-service hotels throughout Scandinavia
• Business Development agreement signed with AHA Hospitality in Dubai
• New ISO standards will require the hospitality industry to invest in IT solutions to comply with these new standards from 2022
  • Arribatec Certify is well positioned to benefit from these changes
• Holographic Solution for touchless check-in/out developed and ready for the market
• AI Voice Solutions prototyped for Certify to further simplify, streamline and increase efficiency combined with document compliance and deliver on new ISO

| EXPO 2020 DUBAI ^

• Official Participant under the umbrella of Innovation Norway
• Certify to control the Cleanliness process @ the Norwegian Pavilion
• Platform to develop the GCC market for Arribatec Group
• Starting October 1st

| M&A Strategy ^

All acquisitors must be accretive to Arribatec's valuation

Contribute to deliver on One Solution and sustainable profitable growth

| Summing up Q2 ^

• Q2 Continued solid growth in revenue 241% y/y organic growth of 36%
• Q2 671% y/y growth in RR and 22% higher than Q1
• Q2 EBITDA of NOK 1.8 m lower then Q1 due to strong focus on growth, integration and organizational alignment
• Q3 Closing acquisitions, Integra & Grupo Hodei expect to contribute with NOK 100 mill in revenue first year + positive EBITDA
• Q3/Q4 focus on integration, build global sales organization, recruitment and cost-control
• 2021 Estimated total revenue of NOK 425-450m (depending on Integra & Grupo Hodei)
• 2022 NOK 550m yearly run-rate by end of 2021 – incl. ~15% organic growth
• 2022 Expect full effect of integrations of acquired companies on EBITDA from early 2022

| Appendix ^ Financial Figures

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| Profit & Loss ^

			For the quarter end		YTD
		30 June	30 June	30 June	30 June	Full year
NOK thousand	Note	2021	2020	2021	2020	2020
Revenue	3	104 427	30 637	203 599	66 482	154 024
Materials, software and services		(21992)	(1959)	(44 720)	(5772)	(17 609)
Gross profit		82 435	28 678	158 879	60 710	136 415
Salary and personnel costs		(61663)	(22 695)	(118 226)	(46 959)	(99 143)
Costs from reverse takeover		O	0	0	0	(56 822)
Other operating expenses		(18 989)	(2 968)	(29 025)	(6 442)	(25 710)
Total operating expenses		(80 652)	(25 663)	(147 251)	(53 401)	(181 674)
EBITDA		1 783	3 015	11 628	7 308	(45 259)
Depreciations and amortizations		(7 998)	(1202)	(14 807)	(2 131)	(7 240)
Operating profit (EBIT)		(6 215)	1 813	(3 179)	5 178	(52 499)
Financial income	4	(66)	344	1 130	364	1247
Financial expense	4	(342)	(477)	(1999)	(837)	(2 945)
Profit/(loss) before tax		(6 622)	1 680	(4 047)	4 705	(54 197)
Tax expense		(465)	(388)	(2 435)	(1086)	(1424)
Profit after tax attributable to equity holders of the parent company		(7 088)	1 292	(6 482)	3 619	(55 620)
Earnings per share: basic	10	(0,02)	0,01	(0,01)	0,04	(0,18)
Earnings per share: diluted	10	(0,02)	0,01	(0,01)	0,04	(0,18)

| Balance Sheet ^

		rol the qualter end
NOK thousand	Note	30 June 2021	31 Dec 2020
ASSETS
Non-current assets
Property, Plant and equipment		5 178	3 251
Right-of-use assets	6	18 796	20 768
Goodwill	6	187 942	93 82
Customer relations	6	33 924	13 14
Other Intangible assets	6	64 893	18 31
Other non-current assets		11 774	94
Deferred tax assets		1 075	2 43
Total non-current assets		323 583	152 68
Current assets
Trade receivables		70 283	32 95
Other receivables		2 159	22 091
Contract assets		19 638	12 38
Other current assets		24 778	274
Cash and cash equivalents		78 586	188 27
Total current assets		195 444	258 44
TOTAL ASSETS		519 027	411 137

		For the quarter end
		30 June	31 Dec
NOK thousand	Note	2021	2020
EQUITY AND LIABILITIES
Equity
Paid in capital
Issued capital	9	127 432	117 203
Other paid in capital		225 232	194 510
Total paid in capital		352 663	311 713
Other equity
Exchange differences		(1409)	8
Other equity		(1989)	4 493
Total other equity		(3 398)	4 501
Total equity		349 266	316 214
Non-current liabilities
Interest bearing loans	7	26 772	1344
Lease liabilities	6	11 807	15 500
Other non-current financial liabilities		716	0
Deferred tax liabilities		13 071	0
Provisions		17 187	O
Total non-current liabilities		69 554	16 843
Current liabilities
Short term financial liabilities	7	4 033	7 046
Current lease liabilities	6	8 233	7 125
Accounts payable and other current liabilities		14 162	23 966
Contract liabilities		20 029	1 283
Current tax payable		3 368	3 596
Other current liabilities		50 382	35 064
Total current liabilities		100 208	78 080
Total liabilities		169 762	94 923
TOTAL FOLITY AND LIARILITIES		510 027	AH 127

| Cash flow ^

		For the quarter end		YTD
		30 June	30 June	30 June	30 June	Full year
NOK thousand	Note	2021	2020	2021	2020	2020
Operating activities
Profit/(Loss) before tax		(6 622)	1680	(4 047)	4 705	(55 620)
Taxes paid		O	0	(982)	0	(1196)
Adjustments for:
- Calculated cost from reverse takeover		O	0	0	0	56 822
- Finance income and expense	4	416	133	877	473	1 688
- (Increase)/decrease in trade receivables		(3 243)	9 939	(10 836)	1 214	1328
- (Decrease)/increase in trade payables		(7 105)	(1902)	(18 548)	2 664	6 089
- Depreciation and amortization	5,6	7 999	1 202	14 807	2131	7 240
Change in other current accounts		(2 731)	4 330	1332	7 179	(17 369)
Net cash flows operating activities		(11 287)	15 382	(17 397)	18 366	(1 009)
Investing activities
Cash received through business combination	7	0	0	20 712	0	34 741
Cash consideration Investment in subsidiaries	8	0	0	(101 472)	0	(59 942)
Capitalized development costs and tangible assets	5	(5 702)	(3 696)	(13 245)	(7 266)	(12 548)
Interest received		(398)	0	0	0	236
Net cash flows investing activities		(6 098)	(3 696)	(94 005)	(7 266)	(37 514)
Financing activities
Net proceeds from borrowings		15 793	0	15 793	0	5 472
Change in overdrafts		(7 950)	(1910)	(9 383)	1924	(3 821)
Repayment of debt		470	0	0	0	(1179)
Interest paid		(299)	(170)	(844)	(199)	(755)
Calculated interest lease liabilities		280	0	O	0	0
Installments lease liabilities		(2 418)	0	(2 418)	0	0
Other changes in equity		O	0	O	0	(1110)
Proceeds from shares issued		0	0	0	0	234 954
Share issue costs		O	0	0	0	(12 891)
Net cash flows financing activities		5 876	(2 080)	3 147	1 725	220 671
Net change in cash and cash equivalents		(11509)	9 606	(108 254)	12 825	182 149
Cash and cash equivalents at the beginning of period		91 525	9 340	188 270	6 121	6 121
Currency translation		(1 430)	0	(1 430)	0	0
Cash and cash equivalents at end of period		78 586	18 945	78 586	18 945	188 270

Equity ^

1	Restricted
	Share			Exchange		Total
NOK thousand	capital	Treasury shares	Other paid in capital	differences	Retained earnings and profit for the year	Equity
Closing balance on 31 December 2019	2 589	-312	16 286	(52)	3 291	21 802
Balance on 1 January 2020	2 589	-312	16 286	(52)	3 291	21 802
Result of the period					3 619	3 649
Comprehensive income for the period				30		30
Total comprehensive result for the period	O	O	O	30	3 619	3 649
Closing balance on 30 June 2020	2 589	-312	16 286	-22	6 910	25 451
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	O	O	O	60	(55 620)	(55 561)
Ireasury 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)	588	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					(6 482)	(6 482)
Comprehensive income for the period				(1417)		(1417)
Total comprehensive result for the period	0	O	O	(1 417)	(6 482)	(7 899)
Share consideration relating to business combination 2020 (Facil, Microsky and Innit)			(45 607)			(45 607)
Capital increase related to business combinations	10 228		66 129			76 357
Share consideration relating business combinations in 2021 - shares to be issued during 2021			10 200			10 200
Closing balance on 30 June 2021	127 432	O	225 232	(1 409)	(1989)	349 265

| Q2 Reporting Arribatec Group ASA ^

Per Ronny Stav – Group CEO Geir Johansen – Group CFO

Oslo 26 August 2021

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