Arribatec Group ASA

Investor Presentation • Apr 30, 2024

Quarterly presentation Q1 2024

Geir Johansen, CEO

Highlights Q1^

• ⁃ Quarterly revenue of NOK 145m (150m) and -3.3% change compared to Q1 last year
  • ⁃ Easter 2024 occurred in Q1 vs Q2 in 2023
• ⁃ 4 of 5 business areas show positive EBITDA
• ⁃ EBITDA at break-even for Q1, a reduction of NOK 5.5 compared to a year ago
• ⁃ Adjusted EBITDA NOK 1.1m
• ⁃ NOK 39 (40) in cash at the end of the quarter

• ⁃ Signed partnership agreement with Ayfie, a Norwegian AI company. Together we have developed safe enterprise BPM-system search capabilities and are now ready to go to market with this unique offering.
• ⁃ Signed new partnership agreement with SAP, Jdox, Prophix, and finalizing new partnership agreement with a second system provider for Business architecture & Business process management BA&BPM
• ⁃ Signed a cooperation agreement with Process Renewal Group (PRG) to enhance and develop our global Business Architecture- and Business Process Management service offerings.
• ⁃ Signed 430 new contracts and scope extensions for a total value of NOK 138 million

Revenue and EBITDA

Offices around

the globe Employees across business areas*

373+

17 1700+

Arribatec's five business areas ^

Products & services ^

Business Services ERP • Consulting & advisory • Implementations • Support & maintenance • Onboarding & training Unit4, RamBase and SAP BI & analytics • Data platform Hypergene, PowerBI, Jdox & Prophix Software development • Customisation EA & BPM Management systems • Consulting & advisory • Implementations, maintenance & development Qualiware, Ayfie Management consulting: • Business process management • Business architecture • Change management • Continuous improvement • Project management Cloud • IT outsourcing • Hybrid & public cloud • Helpdesk 24/7 • Security & compliance • IT infrastructure advisory • Hardware lifecycle management • Licence management

Courses & training

Hospitality

Digital hotel solutions

• Self-service kiosks with own IP for check in/out and payment
• Mobile check-in solutions
• Digital signage for conference rooms
• Transportation solutions for TVMs

Marine

Asset management & PMS

• Own IP developed over 40 years
• Web-based asset management, planned maintenance & HQSE

Consulting

• Support & managed services
• Database construction
• Integrations

• Integrations

• Development

Q1-24 performance per business areas vs. Q1-23

* Includes external and group internal revenue **BA EBITDA is calculated before common cost and overhead

7

Revenue development for each BA per quarter ^

BA Business Services – Region Nordics performs well

* BA figures Includes external- and BA internal revenue pr Region

NORDICS

• Nordics delivered highest revenue ever at 39m, and a record EBITDA margin in Q1-24 of 21%
• Easter 2024 in Q1 vs Q2 in 2023, impact revenue by NOK 5-6m
• New software partnerships are evening out revenue fluctuations, particularly in Norway
• Our proprietary software, InstiPro is selling well in Norway
• Good demands for Cloud migration support for existing customers

Hospitality update

Status update

• 61 hotels signed up and 97 kiosks installed
• Currently present in Norway, Sweden, Denmark, Belgium, UK and Ireland
• Flytoget contract going as planned first ticket machines will be installed in Q2
• Discussing with Flytoget about SW development projects post-project delivery

Possible revenue scenarios based on number of kiosks installed going forward

4 Revenue components for hotel kiosks

• 1. Hotel kiosks have an annual recurring revenue component consisting of license, support and notifications averaging approx. NOK 70- 90.000 pr year
• 1. Commission on up-sale (i.e. breakfast, late check-out etc.) on each kiosk
• 1. Payment transaction fee for the payment volume that passes through most of the kiosks
• 4. Hardware is paid for by hotels at installation
• As the cost associated with each of the revenue component is very modest, the margin becomes very attractive
• The business model is a volume game

Sales - new contracts and scope extensions ^

Q4: 430 contracts for a total value of NOK 138 million (191m in Q1-23)

Cash flow development ^ Stable cash position at NOK 40m at the end of each quarter

• Net cash flow from operation was NOK +24m for Q1 2024.
• Net cash flow from investing activities was NOK -10.4m in Q1. Main component is payment for earn out to sellers of Integra at NOK 7.5m..
• Net cash flow from financing was NOK -13.7, where NOK -6.8m is change in overdrafts and NOK -4.8 in installments on lease liabilities.
• Arribatec had NOK 39.6m in cash and cash equivalents at the end of the quarter.

Balance sheet development ^

13

NOK mill.

Outlook ^

• Robust demand for cloud services will drive growth for our cloud- and managed IT-services
• Cloud migrations and related digital transformation projects are expected to increase
• Hospitality to grow significantly over next quarters building SaaS revenue base consulting for Flytoget boosts revenue
• Growth for Marine will continue with large projects available in the market
• Partnership with AI/ML companies will be pursued
• Our partnership-strategy will continue, and additional partnerships will be pursued and established
• Demand for hyper automation is rapidly increasing, and should provide for additional revenue streams
• Focus on improving EBITDA margin

Condensed consolidated statements of profit and loss

			For the quarter end		Year to date
NOK thousand	Note	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Revenue	3	142 958	140 550	572 981	504 968
Materials, software and services		(31 454)	(26 724)	(132 673)	(115 035)
Gross profit		111 504	113 825	440 308	389 934
Salary and personnel costs		(93 088)	(95 463)	(346 608)	(338 800)
Other operating expenses		(16 600)	(28 078)	(69 236)	(85 241)
Total operating expenses		(109 688)	(123 542)	(415 845)	(424 041)
EBITDA		1 816	(9 716)	24 463	(34 107)
Depreciation, amortization and impairment		(11 192)	(16 549)	(48 307)	(56 232)
EBIT		(9 376)	(26 266)	(23 844)	(90 339)
Financial income Financial expense	ിത 6	466 (3 218)	877 (2 107)	3 208 (9 414)	5 191 (5 280)
Profit/(loss) before tax		(12 127)	(27 495)	(30 050)	(90 428)
Tax expense		1 402	598	6 634	7 035
Profit/(loss) after tax		(10 725)	(26 897)	(23 416)	(83 393)
Attributable to:
Equity holders of the parent company		(10 725)	(26 897)	(23 416)	(83 393)
Earnings per share: basic	7	(0.16)	(0.04)	(0.34)	(0.13)
Earnings per share: diluted	7	(0.16)	(0.04)	(0.34)	(0.13)

Consolidated statements of financial position

NOK thousand	Note	31 Dec 2023	31 Dec 2022
ASSETS
Non-current assets
Property, Plant and equipment		6 436	6 517
Right-of-use assets		28 442	41 719
Goodwill		206 457	204 581
Customer relations	4	24 125	34 637
Other Intangible assets	4		41 934
Other non-current assets			5 323
Deferred tax assets			12 322
Total non-current assets		331 794	347 034
Current assets
Accounts receivable		90 898
Other receivables		1 398
Contract assets		26 221	16 276
Inventory		1 548	3777
Other current assets		9 893	18 484
Cash and cash equivalents		39 371	40 449
Total current assets		169 329	168 328
TOTAL ASSETS		501 123	515 362

NOK thousand	Note	31 Dec 2023	31 Dec 2022
EQUITY AND LIABILITIES
Equity
Share capital	8	194 802	193 361
Other paid in capital		214 085	215 645
Exchange differences		3 767	679
Other equity		(150 555)	(127 758)
Total equity		262 100	281 927
Non-current liabilities
Interest bearing loans	9	12 928	18 883
Non-current lease liabilities	4	16 836	26 727
Other non-current financial liabilities		1 804	967
Deferred tax liabilities		7 707	10 590
Provisions		10 685	14 202
Total non-current liabilities		49 959	71 369
Carrent liabilities
Interest bearing loans - current portion	9	26 460	12 328
Current lease liabilities	4	12 909	16 765
Accounts payable		39 816	31 879
Contract liabilities		24 319	16 476
Current tax payable		1 691	650
Other current liabilities		83 869	83 969
Total current liabilities		189 065	162 066
Total liabilities		239 024	233 435
TOTAL EQUITY AND LIABILITIES		501 123	515 362

Consolidated statements of changes in equity

		Equity related to the shareholders of the parent company
	Restricted
NOK thousand	Share capital	Other paid in capital	Exchange differences	Other equity	Total Equity
Balance on 1 January 2022	163 773	196 700	398	(44 365)	316 506
Result of the period				(83 393)	(83 393)
Other comprehensive income for the period			282		282
Total comprehensive result for the period	O	O	282	(83 393)	(83 111)
12 Capital issue, April	28 000	22 000			50 000
Share issue, repair offer, July	1 015	798			1 813
Share issue cost		(3 280)			(3 280)
WITH Share consideration relating to acquisition of Integra		(2 872)			(2 872)
Capital issue in relation to acq. of Integra, Nov	573	2 299			2 872
Closing balance 31 Dec 2022	193 361	215 645	679	(127 758)	281 927
Balance on 1 January	193 361	215 645	679	(127 758)	281 927
Result of the period				(23 416)	(23 416)
Other comprehensive income for the period			3 087		3 087
Total comprehensive result for the period	O	O	3 087	(23 416)	(20 329)
Capital issue, Feb	0				O
Share issue cost		(118)			(118)
Share consideration relating to acquisition of Integra		(8 409)			(8 409)
Capital issue in relation to acq. of Integra, Dec	1 442	6 968			8 409
Share option cost				620	620
Closing balance 31 Dec 2023	194 802	214 085	3 767	(150 555)	262 100

Consolidated cash flow statement

		For the quarter end		Year to date
NOK thousand	Note	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Operating activities
Profit/(Loss) before tax		(12 127)	(27 495)	(30 050)	(90 428)
Taxes paid		(1 082)	0	(2 192)	(1 566)
Adjustments for:
- Finance income and expense	4	2 751	1 214	6 203	73
- (Increase)/decrease in trade receivables		8 365	11 412	(2 684)	460
- (Decrease)/increase in trade payables		10 913	11 209	7 937	10 652
- Depreciation and amortization	5, 6	11 372	11 762	48 488	50 618
- Impairment losses on intangible assets		O	4 787	O	5 614
Calculated cost of employee share option program		620	0	620	0
Change in other current accounts		(8 750)	(11 434)	5 340	(2 190)
Net cash flows operating activities		12 062	1 455	33 663	(26 766)
Investing activities
Sale of intangible assets	5 8		9 347	0	9 347
Cash consideration earn-out payment			0 (271)	(3 704)	0
Purchase of property, plant and equipment	5	9 64	(5 920)	(2 693) (16 502)	(1 964) (13 881)
Purchase and development of intangible assets Interest received		152	36	563	291
Net cash flows investing activities		(14 257)	1917	(22 336)	(6 207)
Financing activities
Change in overdrafts		5 038	(0)	12 677	(2 432)
Repayment of debt		(1 769)	(1 172)	(6 173)	(5 464)
Interest paid		(300)	(194)	(1 161)	(697)
Received Gov.grants (SkatteFUNN)		3 301	3 493	3 301	3 493
Instalments lease liabilities		(4 504)	(3 780)	(20 038)	(15 932)
Proceeds from shares issued		O	0	O	51 813
Share issue cost		(111)	(197)	(118)	(3 280)
Net cash flows financing activities		1 655	(1 849)	(11 511)	27 501
Net change in cash and cash equivalents		(540)	2 797	(184)	(5 472)
Cash and cash equivalents at beginning of period		40 161	38 699	40 449	43 758
Currency translation		(250)	(1 047)	(893)	2 163
Cash and cash equivalents at end of period, incl. restricted cash		39 371	40 449	39 371	40 449
-whereof restricted cash		12 111	13 492	12 111	13 492