Arribatec Group ASA

Quarterly Report • Feb 28, 2025

2021 Artbox Report Temlt TemplateAldetdubbel space här?rihts reserved © Artbox AS 2021 All rights reserved © Artbox AS 2021

Quarterly report Q4 2024 ^

Highlights	3
Corporate events & operations	4
Financial review	6
Financial statements & notes	10
APMs, terms and abbreviations	33

2

Highlights ^

Arribatec Group delivered a total revenue of NOK 150.5m for the fourth quarter of 2024, 5.3% above last year. The Group reports an EBITDA of minus NOK 11.7m for the fourth quarter, a decrease of NOK 13.5m compared to the same period in 2023. Adjusted EBITDA was NOK 2.1m, adjusted for restructuring cost of NOK 10.1m and share issue and warrants cost of NOK 3.7m.

Recurring Revenue (RR) increased by NOK 9.1m compared to Q4 last year, to NOK 64.3m for Q4 2024.

The cash balance at the end of the quarter was NOK 23.1m.

Key consolidated figures and ratios		Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Full year 2024	Full year 2023
Revenue	TNOK	150 503	129 530	150 084	144 616	142 958	574 733	572 981
Gross profit	TNOK	113 165	95 336	109 601	109 947	111 504	428 048	440 308
EBITDA	TNOK	(11 717)	(3 952)	433	12	1 816	(15 225)	24 463
Adjusted EBITDA	TNOK	2 084	(3 952)	3 437	1 110	1 816	2 679	24 463
Operating profit/(loss), EBIT	TNOK	(47 799)	(15 700)	(10 636)	(11 114)	(9 376)	(85 249)	(23 844)
Net profit/(loss)	TNOK	(47 846)	(14 899)	(10 611)	(9 357)	(10 725)	(82 713)	(23 416)
Revenue growth y/y for the quarter/full year	%	5.3%	(1.7%)	1.3%	(3.6%)	1.7%	(1.2%)	13.5%
Gross profit margin	%	75.2%	73.6%	73.0%	76.0%	78.0%	74.5%	76.8%
EBITDA margin	%	(7.8%)	(3.1%)	0.3%	0.0%	1.3%	(2.6%)	4.3%
Adjusted EBITDA margin	%	1.4%	(3.1%)	2.3%	0.8%	1.3%	0.5%	4.3%
Earnings per share	NOK	(0.69)	(0.21)	(0.15)	(0.13)	(0.16)	(1.19)	(0.33)
Cash at end of period	TNOK	23 119	18 008	30 062	39 626	39 371	23 119	39 371
Equity	TNOK	189 153	232 576	246 038	255 832	262 463	189 153	262 463
Equity ratio	%	42.8%	48.6%	48.1%	48.7%	52.3%	42.8%	52.3%
Price per share at end of reporting period 1	NOK	0.345	1.390	4.400	4.077	4.650	0.345	4.650
FTEs, employed	Number	314	323	338	332	329	314	329
No. of outstanding shares, beg. of period 1	Number	69 572 206	69 572 206	69 572 206	69 572 206	69 057 322	69 572 206	690 573 217
New shares issued 1	Number	0	0	0	0	514 884	0	514 887
No. of outstanding shares, end of period 1	Number	69 572 206	69 572 206	69 572 206	69 572 206	69 572 206	69 572 206	69 572 206
Average number of shares, year to date	Number	69 572 206	69 572 206	69 572 206	69 572 206	69 057 322	69 572 206	69 057 322

¹ Reversed share split (10:1) in Q1 2023

Corporate events & operations ^

Arribatec delivered its highest sales in Q4, 5.3% up from the same period last year.

On 27 September 2024, Arribatec announced a financial restructuring in response to a liquidity shortfall. In an extraordinary general meeting held on 2 December 2024, a rights issue of up to 350 000 000 new shares with preferential subscription rights for existing shareholders to raise gross proceeds of up to NOK 35 million at a subscription price in the Rights Issue is proposed set to NOK 0.10 per new share.

The Rights Issue was underwritten by key shareholders of the Company. The underwriters received 150 214 592 tradeable unlisted warrants to subscribe for one new share in the Company.

In addition, an offering to directors of the Company of up to 60 million new shares at the offer price and 60 million warrants on the same terms as the Underwriters. The participants in the Director Offering was eligible to receive one warrant per new shares subscribed for in the Director Offering.

The preferential subscriptions were fully subscribed together with the 60 million director subscriptions on the 6 February 2025. The cost relating to the Board of Director subscription and warrants, including a provision for taxes of NOK 3.7m were recognised in Q4.

Following the above, the Company underwent a restructuring initiative with a onetime restructuring cost of NOK 10.1m in Q424. A total of 25 FTEs were made redundant, with the savings coming into effect from Q22025.

During the fourth quarter, we have made significant progress in the discussions with buyers of both Marine and Hospitality.

The revenue for the fourth quarter of 2024 was NOK 150.5m. The corresponding numbers for Q423 were NOK 143m, a growth of 5.3% YoY. The growth stems from BA Business Services and Cloud.

Revenue mix Q4 compared to last year, per geographic region Per cent

Norway UK Americas Continental Europe

BA Business Services; as mentioned in previous quarters, Unit4 ERP migration projects have started and will continue with high volumes into 2025. In addition, the BA has performed well with large customer deliveries within Business Analytics.

BA EA&BPM experienced flat revenue compared to Q423. On 19 November Arribatec announced that the BA was awarded a major contract with the Norwegian Defense Material Agency ("FMA"). The contract includes a wide range of services that had a modest startup at the end of the fourth quarter.

BA Cloud had strong sales in the quarter, up 20% compared to the same quarter last year. The growth is mainly driven by increased sales of whitelabelled licenses, though at a lower margin.

The consolidated adjusted EBITDA was NOK 2.1m after adjusting for restructuring costs of NOK 10.1m and NOK 3.7m relating to the sharebased payment to the Board of directors, included provision for social security taxes.

Business development

610 new sales contracts were signed in Q4 at a total value of NOK 285.1m (+45% from Q2) including scope extensions and new agreements. The five largest contracts account for 29% of the new contracted volume. The total number of signed contracts for the year was 1 905.

The Nordics remain the largest region with 71% of the new contract volume in Q4. The top five industries are retail, technology, public sector, Food and beverage, and non-profits.

In terms of value, the distribution is as follows for our five business areas:

Business Services 42%, EA & BPM 32%, Cloud 19%, Hospitality 1% and Marine 7%.

Business Development - signed contracts NOK mill

The total current pipeline:

• Sum gross pipeline: NOK 1370m
• Sum weighted pipeline: NOK 400m

Financial review ^

Profit & loss

Arribatec Group's full year revenue growth was 0.3% (NOK 1.8m) and was reported at NOK 574.7m. The equivalent number for Q4 revenue growth was +5.3% and was reported at NOK 150.5m. Recurring revenue accounted for NOK 251.3m in 2024, or 44% of total revenue, an increase of 17% from 2023. Region Nordic delivered almost 80% of the total. Consulting revenue was NOK 283.3m, a decrease from 2023 of 15%, in all regions.

In Q4, recurring revenue accounted for NOK 64.3m, or 44% of total revenue, whereas Region Norway delivered 80% of the total. Compared to Q4 2023, recurring revenue increased by NOK 9.1m, or 16%. Consulting services accounted for NOK 74.7m of the total revenue, where Region Norway had NOK 47.3m, Continental Europe NOK 14.4m, UK NOK 11.7m and Americas NOK 1.4m.

Material, software, and services (cogs) 2024 was NOK 146.7m compared to 132.7m in 2023. Q4 was NOK 37.3m compared to NOK 31.5m in the same period last year. Gross profit decreased by NOK 1.7m compared to the previous year, to NOK 113.2m in Q4. The main reason for the increased cogs

was related to the BA Cloud and a licensing partnership where licenses are directly billed forward to customers at only a 510% margin. Furthermore, BA EA&BPM had an increased cogs due to a settlement to a license partner relating to guaranteed minimum purchase during the year, also lowered the margin.

Total operating expenses for 2024 were 443.3m compared to 415.8m last year. Q4 was NOK 124.9m compared to NOK 109.7m in the same period last year, an increase of NOK 15.2m. The main expenses in Operating expenses are salary and personnel costs, equal to appr. 80% of total operating expenses.

The main cost increase stems from salary cost (3.6m), restructuring cost (10.1m) and cost of share consideration related to the share warrants of the BoD (3.6m). The calculated share option costs impacted NOK 0.6m in Q4 (NOK 3.2m for the full year).

Arribatec has decided on a restructuring plan involving down scaling and cost savings, which includes down scaling of

25 FTEs across the business areas. This has led to restructuring costs of NOK 10.1m, of which NOK 7.6m reflects 2025 costs.

EBITDA for 2024 was NOK 15.2m compared to 24.5m in 2023. The amounts for the fourth quarter of 2024 was NOK 11.7m which is NOK 13.5m below the same period last year. EBITDA margin for Q4 was negative 5.1%.

Depreciation and amortisation (D&A) was NOK 36.1m for Q4 compared to NOK 11.2m in same period 2023. The two main components of the D&A relates to intangible assets from acquired companies and other intangible assets (4.0m), internally developed software and technical software (2.0m), depreciation of fixed assets (1.1m) and depreciation of rightofuse assets such as office lease contracts calculated according to IFRS 16 (4.6m). In Q4, an impairment of goodwill related to BA Hospitality of NOK 24.4m was included.

Finance, tax & net result

Net financial items for Q4 were NOK 3.1m and calculated tax income for the same period was NOK 3.0m leaving a net loss after tax of NOK 47.9m for Q4 2024. For the full year 2024, net financial items were NOK 6.1m, tax income 8.6m and net loss 82.7m.

The balance sheet

The total assets of the Group at the end of December 2024 were NOK 442.3m compared to 501.5m at the end of 2023. Non-current intangible assets at the end of the period accounted for NOK 237.3m. Intangible assets consist of goodwill of NOK 184.3, which stems from the acquisitions done by Arribatec since Q4 2020. Additionally, at the end of the period, NOK 13.8m of the purchase price paid for the companies was allocated as the value of the customer relations in those same companies. Finally, technical and custom-made software accounts for NOK 39.2m of the intangible assets. Total intangible assets at the end of 2023 were NOK 278.3m.

Current assets of NOK 143.5m consist of account receivables of 76.7m and a cash balance at the end of the quarter of NOK 23.1m. Other receivables, inventory and contract assets add up to NOK 43.7m. Total current assets at the end of 2023 were NOK 169.3m.

Non-current liabilities at the end of Q4 were NOK 40.7m, of which 7.4m were smaller revolving credit facilities in Italy. Lease liabilities related to office and equipment with a remaining lease period above twelve months calculated under IFRS 16 accounted for NOK 13.3m, while deferred tax totalled

5.6m. Total non-current liabilities at the end of last year were NOK 50.0m.

Current liabilities was NOK 212.4m at the end of the quarter. Short-term debt was NOK 37.8m and other current liabilities accounted for 81.9m. This item mainly includes accruals for holiday pay, employee tax and VAT. The amount of total current liabilities at the end of last year was NOK 189.0m.

At the end of the quarter, total equity was NOK 189.2m, giving an equity ratio of 42.8%.

Arribatec had a total of 69 572 206 shares outstanding per 31.12.2024.

Cash flow and liquidity

Arribatec's cash flow from operating activities in Q4 was positive with NOK 15.7m. The net change in accounts receivables and payables had a positive impact of NOK 25.6m in Q4. Furthermore, a change in contract assets/liabilities had a negative impact of NOK 6.5m in Q4. The value of the contract liabilities (deferred revenue) will decrease along with the revenue recognition in the profit and loss statement over the year. Other current accounts increased cash from operation

by NOK 8.8m in the quarter. The main factors are changes in accrued holiday pay and payments related to employee taxes.

Net cash flow from investing activities was NOK -1.7m in Q4. The main part of the capitalised assets are capitalised development costs and purchased software. Net cash flow from financing was negative at NOK 8.7m in the same period.

Arribatec had NOK 23.1m in cash and cash equivalents at the end of the fourth quarter of the year.

Events after the reporting date

On 2 December 2024, an extraordinary general meeting of Arribatec decided on a capital reduction by reducing the par value from NOK 2.80 to NOK 0.10 per share. The reduction took place after the end of the creditor notice period on 27 January 2025.

Furthermore, the rights issue directed to all existing shareholders and the Board of Directors was completed on 6 February 2025. The share issue resulted in NOK 41m cash.

On the 25 February the Company announced that the CEO Geir Johansen will be stepping down from his role effective from 1 March 2025. The Board has appointed Ole Jakob Kjølvik as interim CEO from 1 March.

Responsibility Statement

We confirm that, to the best of our knowledge, the condensed set of financial statements for the period 1 January to 31 December 2024, which have been prepared in accordance with IAS 34 as adopted by EU, gives a true and fair view of the Company and the Group's consolidated assets, liabilities, financial position, and results of operations, and the management report includes a fair review of important events during the period and their effects on the condensed set of financial statements for the full year 2023, together with a description of the principal risks and uncertainties for the remaining months of the financial year as well as material transactions with related parties for the period.

Oslo, 27 February 2025

Håkon Reistad Fure Chairman of the board Linn Katrine Høie Board member

Terje Mjøs Board member

Henrik A. Christensen Board member

Kristin Hellebust Board member

Geir Johansen CEO

Interim condensed consolidated financial statements & notes ^

Interim condensed consolidated statements of profit and loss ^

		For the quarter end		Year to date
NOK thousand	Note	31 Dec 2024	31 Dec 2023	31 Dec 2024	31 Dec 2023
Revenue	3	150 503	142 958	574 733	572 981
Materials, software and services		(37 338)	(31 454)	(146 684)	(132 673)
Gross profit		113 165	111 504	428 048	440 308
Salary and personnel costs		(100 244)	(93 088)	(369 272)	(346 608)
Other operating expenses		(24 637)	(16 600)	(74 002)	(69 236)
Total operating expenses		(124 882)	(109 688)	(443 273)	(415 845)
EBITDA		(11 717)	1 816	(15 225)	24 463
Depreciation, amortisation and impairment	4, 5	(36 082)	(11 192)	(70 025)	(48 307)
EBIT		(47 799)	(9 376)	(85 249)	(23 844)
Financial income	6	687	466	2 499	3 208
Financial expense	6	(3 789)	(3 218)	(8 578)	(9 414)
Profit/(loss) before tax		(50 902)	(12 127)	(91 329)	(30 050)
Tax expense		3 055	1 766	8 616	6 998
Profit/(loss) after tax		(47 846)	(10 361)	(82 713)	(23 053)
Attributable to:
Equity holders of the parent company		(47 846)	(10 361)	(82 713)	(23 053)
Earnings per share: basic	7	(0.69)	(0.15)	(1.19)	(0.33)
Earnings per share: diluted	7	(0.69)	(0.15)	(1.19)	(0.33)

Interim condensed consolidated statements of comprehensive income ^

	For the quarter end		Year to date
NOK thousand	31 Dec 2024	31 Dec 2023	31 Dec 2024	31 Dec 2023
Profit/(loss) after tax	(47 846)	(10 361)	(82 713)	(23 053)
Items that may be classified subsequently to profit or loss
Foreign currency translation differences - foreign operations	1 069	(294)	3 531	3 088
Other comprehensive income/(loss) for the period	1 069	(294)	3 531	3 088
Total comprehensive income/(loss) for the period	(46 778)	(10 656)	(79 182)	(19 965)
Attributable to:
Equity holders of the parent company	(46 778)	(10 656)	(79 182)	(19 965)

Interim condensed consolidated statement of financial position ^

NOK thousand	Note	31 Dec 2024	31 Dec 2023
ASSETS
Non-current assets
Property, Plant and equipment		4 944	6 436
Right-of-use assets	4	26 563	28 442
Goodwill	5	184 258	206 457
Customer relations	5	13 829	24 125
Other Intangible assets	5	39 167	43 771
Other non-current assets		4 602	3 989
Deferred tax assets		25 388	18 998
Total non-current assets		298 750	332 217
Current assets
Accounts receivable		76 705	90 898
Contract assets		25 434	24 244
Inventory		7 817	1 548
Other current assets		10 426	13 267
Cash and cash equivalents		23 119	39 371
Total current assets		143 500	169 329
TOTAL ASSETS		442 251	501 545

NOK thousand	Note	31 Dec 2024	31 Dec 2023
EQUITY AND LIABILITIES
Equity
Share capital	8	194 802	194 802
Other paid in capital	10	216 803	214 085
Exchange differences		7 297	3 767
Other equity		(229 750)	(150 191)
Total equity		189 153	262 463
Non-current liabilities
Interest bearing loans	9	7 435	12 928
Non-current lease liabilities	4	13 317	16 836
Other non-current financial liabilities		2 575	1 804
Deferred tax liabilities		5 623	7 786
Provisions		11 710	10 685
Total non-current liabilities		40 661	50 038
Current liabilities
Interest bearing loans	9	37 819	26 460
Current lease liabilities	4	14 373	12 909
Accounts payable		52 432	39 816
Contract liabilities		25 824	24 319
Current tax payable		83	1 669
Other current liabilities		81 906	83 869
Total current liabilities		212 437	189 044
Total liabilities		253 098	239 082
TOTAL EQUITY AND LIABILITIES		442 251	501 545

Interim condensed consolidated statement of changes in equity ^

		Equity related to the shareholders of the parent company
	Restricted
		Other	Exchange
NOK thousand	Share capital	paid in capital	differences	Other equity	Total Equity
Balance on 1 January	193 361	215 645	679	(127 758)	281 927
Result of the period				(23 053)	(23 053)
Other comprehensive income for the period			3 087		3 087
Total comprehensive result for the period	0	0	3 087	(23 053)	(19 965)
Capital issue, Feb	0				0
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	(150 191)	262 463
Balance on 1 January	194 802	214 085	3 767	(150 191)	262 463
Result of the period				(82 713)	(82 713)
Other comprehensive income for the period			3 531		3 531
Total comprehensive result for the period	0	0	3 531	(82 713)	(79 182)
Share issue cost		(352)			(352)
Share option cost				3 154	3 154
Share consideration in relation to BoD (Note 10)		3 069			3 069
Closing balance 31 Dec 2024	194 802	216 803	7 297	(229 750)	189 153

Interim condensed consolidated cash flow statement ^

		For the quarter end		Year to date
NOK thousand	Note	31 Dec 2024	31 Dec 2023	31 Dec 2024	31 Dec 2023
Operating activities
Profit/(Loss) before tax		(50 902)	(12 127)	(91 329)	(30 050)
Taxes paid		(1 000)	(1 082)	(2 547)	(2 192)
Adjustments for:
- Finance income and expense	6	3 103	2 751	6 079	6 203
- (Increase)/decrease in trade receivables		5 155	8 365	14 193	(2 684)
- (Decrease)/increase in trade payables		20 444	10 913	12 616	7 937
- Depreciation and amortisation	4, 5	11 666	11 372	45 609	48 488
- Impairment losses on intangible assets	5	24 416	0	24 416	0
Calculated cost of employee share option program		594	620	3 154	620
Change in contract assets/liabilities		(6 538)	(14 413)	316	(124)
Change in other current accounts		8 787	5 663	857	5 465
Net cash flows operating activities		15 726	12 062	13 362	33 663
Investing activities
Cash consideration earn-out payment	8	0	(3 704)	(7 531)	(3 704)
Purchase of property, plant and equipment		(106)	(1 057)	(1 581)	(2 693)
Purchase and development of intangible assets	5	(1 702)	(9 649)	(8 108)	(16 502)
Interest received		119	152	458	563
Net cash flows investing activities		(1 690)	(14 257)	(16 763)	(22 336)

Interim condensed consolidated cash flow statement continued ^

		For the quarter end		Year to date
NOK thousand	Note	31 Dec 2024	31 Dec 2023	31 Dec 2024	31 Dec 2023
Financing activities
Change in overdrafts	9	(4 924)	5 038	12 167	12 677
Repayment of debt	9	(1 897)	(1 769)	(7 372)	(6 173)
Interest paid	6	(461)	(300)	(1 556)	(1 161)
Received Gov.grants (SkatteFUNN)		695	3 301	695	3 301
Instalments lease liabilities		(4 885)	(4 504)	(19 306)	(20 038)
Other changes in equity	10	3 069	0	3 069	0
Share issue cost		(309)	(111)	(352)	(118)
Net cash flows financing activities		(8 711)	1 655	(12 655)	(11 511)
Net change in cash and cash equivalents		5 325	(540)	(16 056)	(184)
Cash and cash equivalents at beginning of period		18 008	40 161	39 371	40 449
Currency translation		(214)	(250)	(197)	(893)
Cash and cash equivalents at end of period, incl. restricted cash		23 119	39 371	23 119	39 371
-whereof restricted cash		11 673	12 111	11 673	12 111

Notes to the interim condensed consolidated financial statements ^

Note 01 Basis for the preparation

The parent company Arribatec Group ASA (Company) is a company domiciled in Norway. These condensed consolidated interim Statements ("interim financial statements") comprise the Company and its subsidiaries (together referred to as "the Group"). These interim financial statements are unaudited for 2024 and it is prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the EU. The accounting policies adopted are consistent with those used in the annual financial statements for the year ended 31 December 2023. Changes to IFRSs which have been effective from 1 January 2024 have had no material impact on the Group's financial statements. All presented figures in this interim report have been rounded and consequently, the sum of individual figures can deviate from the presented total figure.

Note 02 Risk and uncertainties

In preparing these interim financial statements, management has made judgments and estimates that affect the application and accounting policies and the reported amounts of assets and liabilities, income, and expenses. Actual results may differ from these estimates. Critical Accounting estimates and judgments in terms of accounting policies are more comprehensively discussed in the Company's Annual report for the Financial Year 2023, available on Arribatec's website: www.Arribatec.com.

Note 03 Revenue per geography and segment

Segment

The management of the Group follows up the revenue by Business Area and geography.

Business services are focusing on ERP, BI & Analytics, DevOps, integrations, and software solutions for research institutes. Arribatec Business services provide simplicity by implementing, customizing, maintaining, and supporting the entire business landscape, with ERP as the core engine. We integrate it with other marked leading systems that provide better operational support and insight than a single ERP system does.

EA & BPM provides Enterprise Architecture and Business Process Management. Arribatec EA&BPM delivers solutions and long-term services within the spaces of business process management, enterprise architecture, and corporate governance to major Norwegian and Nordic customers, both in the private and public sectors.

Cloud provides cloud services such as hosting IT infrastructure within f ex hybrid, Azure, Splunk, and GDPR. Arribatec Cloud provides consulting, outsourcing, and cloud services to private and public enterprises. In addition to offering market-leading cloud services from Microsoft and Google, Arribatec Cloud also operates its public cloud offering based on Norwegian data centers to accommodate special use cases for our customers.

Hospitality delivers solutions for self-check-in/check-out and payments for the hospitality industry.

Marine focus on the Maritime sector. BA Marine's competencies are the development, implementation, and consulting of the owned asset management system solutions: Infoship.

For the quarter end 31 Dec 2024

NOK thousand	Business services	EA & BPM	Cloud	Hospitality	Marine	Corporate	Eliminations	Total
Revenue	73 523	28 685	37 609	5 064	11 305	163	(5 848)	150 503
Materials, software and services	(11 808)	(7 342)	(19 667)	(2 036)	(1 737)	(559)	5 811	(37 338)
Gross margin	61 715	21 343	17 942	3 028	9 568	(396)	(36)	113 165
Salary and personnel costs	(49 520)	(16 414)	(14 331)	(4 071)	(6 485)	(9 422)	0	(100 244)
Other operating expenses	(7 244)	(1 988)	(1 669)	(3 155)	(1 357)	(9 261)	36	(24 637)
Total operating expenses	(56 764)	(18 402)	(16 000)	(7 227)	(7 842)	(18 684)	36	(124 882)
EBITDA	4 951	2 941	1 942	(4 198)	1 726	(19 079)	0	(11 717)
Depreciation, amortisation and impairment	(4 078)	(1 887)	(2 455)	(25 025)	(2 006)	(631)	0	(36 082)
EBIT	873	1 054	(513)	(29 223)	(280)	(19 710)	0	(47 799)
Gross margin %	83.9%	74.4%	47.7%	59.8%	84.6%	na	na	75.2%
EBITDA %	6.7%	10.3%	5.2%	(82.9%)	15.3%	na	na	(7.8%)
EBIT %	1.2%	3.7%	(1.4%)	(577.0%)	(2.5%)	na	na	(31.8%)

For the quarter end 31 Dec 2023

NOK thousand	Business services	EA & BPM	Cloud	Hospitality	Marine	Corporate	Eliminations	Total
Revenue	69 820	28 982	31 223	6 071	12 780	128	(6 046)	142 958
Materials, software and services	(12 619)	(4 916)	(16 013)	(2 040)	(1 335)	(582)	6 052	(31 454)
Gross margin	57 201	24 066	15 210	4 031	11 445	(454)	6	111 504
Salary and personnel costs	(50 891)	(16 579)	(12 042)	364	(5 971)	(7 969)	0	(93 088)
Other operating expenses	(3 210)	(1 990)	(2 916)	(1 703)	(2 289)	(4 487)	(6)	(16 600)
Total operating expenses	(54 101)	(18 569)	(14 958)	(1 339)	(8 261)	(12 455)	(6)	(109 688)
EBITDA	3 100	5 497	252	2 692	3 184	(12 910)	0	1 815
Depreciation, amortisation and impairment	(6 205)	(1 615)	(1 875)	(911)	(1 638)	1 052	0	(11 192)
EBIT	(3 105)	3 882	(1 623)	1 781	1 546	(11 858)	0	(9 376)
Gross margin %	81.9%	83.0%	48.7%	66.4%	89.6%	na	na	78.0%
EBITDA %	4.4%	19.0%	0.8%	44.3%	24.9%	na	na	1.3%
EBIT %	(4.4%)	13.4%	(5.2%)	29.3%	12.1%	na	na	(6.6%)

Year to date 31 Dec 2024

NOK thousand	Business services	EA & BPM	Cloud	Hospitality	Marine	Corporate	Eliminations	Total
Revenue	273 492	106 346	142 308	31 653	42 646	453	(22 165)	574 733
Materials, software and services	(43 149)	(28 293)	(73 572)	(16 687)	(5 088)	(2 080)	22 185	(146 684)
Gross margin	230 343	78 052	68 736	14 967	37 558	(1 628)	20	428 048
Salary and personnel costs	(186 829)	(63 697)	(50 468)	(14 873)	(26 437)	(26 967)	(0)	(369 272)
Other operating expenses	(20 938)	(7 158)	(8 972)	(6 810)	(3 968)	(26 136)	(20)	(74 002)
Total operating expenses	(207 768)	(70 855)	(59 439)	(21 683)	(30 404)	(53 103)	(20)	(443 273)
EBITDA	22 575	7 197	9 297	(6 716)	7 154	(54 730)	0	(15 225)
Depreciation, amortisation and impairment	(15 533)	(7 240)	(11 078)	(26 602)	(7 330)	(2 241)	0	(70 025)
EBIT	7 042	(43)	(1 781)	(33 319)	(177)	(56 971)	0	(85 249)
Gross margin %	84.2%	73.4%	48.3%	47.3%	88.1%	na	na	74.5%
EBITDA %	8.3%	6.8%	6.5%	(21.2%)	16.8%	na	na	(2.6%)
EBIT %	2.6%	(0.0%)	(1.3%)	(105.3%)	(0.4%)	na	na	(14.8%)

Year to date 31 Dec 2023

NOK thousand	Business services	EA & BPM	Cloud	Hospitality	Marine	Corporate	Eliminations	Total
Revenue	294 258	111 010	127 016	10 903	47 645	662	(18 514)	572 981
Materials, software and services Gross margin	(56 402) 237 856	(24 170) 86 840	(61 136) 65 880	(4 318) 6 585	(3 075) 44 570	(1 989) (1 327)	18 418 (96)	(132 673) 440 308
Salary and personnel costs	(190 084)	(59 394)	(43 950)	(4 400)	(23 939)	(24 841)	0	(346 608)
Other operating expenses	(18 170)	(5 832)	(12 732)	(5 518)	(6 942)	(20 139)	96	(69 236)
Total operating expenses	(208 254)	(65 227)	(56 682)	(9 918)	(30 882)	(44 980)	96	(415 845)
EBITDA	29 602	21 614	9 198	(3 333)	13 689	(46 307)	0	24 463
Depreciation, amortisation and impairment	(19 563)	(6 557)	(7 802)	(3 533)	(7 211)	(3 642)	0	(48 307)
EBIT	10 039	15 057	1 396	(6 866)	6 478	(49 949)	0	(23 844)
Gross margin %	80.8%	78.2%	51.9%	60.4%	93.5%	na	na	76.8%
EBITDA %	10.1%	19.5%	7.2%	(30.6%)	28.7%	na	na	4.3%
EBIT %	3.4%	13.6%	1.1%	(63.0%)	13.6%	na	na	(4.2%)

Disaggregation of revenue

In the following table, revenue is disaggregated by primary service line, geography and recurrence. In presenting the geographic information, revenue is based on the geographic location of the legal entities.

For the quarter end 31 Dec 2024

NOK thousand	Consulting services	Recurring Revenue	One-time revenue	Total
Norway	47	51	8	107
	265	336	700	301
Continental Europe	14	4	1	21
	426	965	646	038
UK	11	6	1	19
	672	282	144	098
America	1 381	1 685	0	3 066
Total revenue	74	64	11	150
	744	268	491	503

For the quarter end 31 Dec 2023

NOK thousand	Consulting services	Recurring Revenue	One-time revenue	Total
Norway	46	44	4	95
	599	618	735	952
Continental Europe	19	3	2	26
	436	929	653	019
UK	10 281	4 705	248	15 234
America	3 671	1 919	164	5 753
Total revenue	79	55	7	142
	988	170	800	958

Year to date 31 Dec 2024

NOK thousand	Consulting services	Recurring Revenue	One-time revenue	Total
Norway	166	199	35	401
	578	758	190	526
Continental Europe	61	21	3	86
	365	814	224	403
UK	43	23	1	68
	371	105	780	255
America	11 971	6 578	0	18 549
Total revenue	283	251	40	574
	285	255	193	733

Year to date 31 Dec 2023

NOK thousand	Consulting services	Recurring Revenue	One-time revenue	Total
Norway	169	174	16	360
	368	273	463	104
Continental Europe	86	15	6	108
	016	900	874	790
UK	46 581	17 291	571	64 442
America	31	6	1	39
	167	714	764	645
Total revenue	333	214	25	572
	131	177	672	981

Note 04 Leased assets

Right-of-use assets

Year to date 31 Dec 2024

NOK thousand	Buildings	Vehicles	Hardware	Other	Total
Right-of-use assets per 1 Jan 2023	32 773	89	1 814	7 043	41 719
Addition of right-of-use assets	4 740	724	1 135	270	6 869
Correction of initial index regulation, addition part	(1 372)	(1)	0	0	(1 373)
Depreciation in the period	(13 320)	(235)	(1 650)	(3 458)	(18 663)
Correction of initial index regulation, reversal of depr. prev.years	180	0	0	0	181
Reclassification between categories	(41)	41	0	0	0
Disposals	(952)	0	0	0	(952)
Translation difference	657	2	1	0	660
Right-of-use assets per 1 Jan 2024	22 665	620	1 299	3 856	28 442
Addition of right-of-use assets	5 108	1 142	7 348	5 048	18 646
Depreciation in the period	(11 543)	(553)	(3 471)	(2 402)	(17 969)
Disposals	(109)	0	(107)	(2 586)	(2 802)
Translation difference	207	39	0	0	246
Carrying amount of right-of-use assets, end of period	16 328	1 248	5 070	3 917	26 563
Remaining lease term	1-5 years	1-4 years	1-3 years	1-3 years
Depreciation method	Linear	Linear	Linear	Linear

Lease liabilities

NOK thousand	31 Dec 2024	31 Dec 2023
Undiscounted lease liabilities and maturity of cash outflow
< 1 year	15 180	13 609
1-2 years	7 966	9 421
2-3 years	3 639	5 344
3-4 years	1 748	2 064
4-5 years	620	546
Total undiscounted lease liabilities, end of period	29 153	30 984
Discount element	(1 463)	(1 239)
Total discounted lease liabilities, end of period	27 690	29 745

NOK thousand	31 Dec 2024	31 Dec 2023
Total lease liabilities, end of period	27 690	29 745

Note 05 Intangible assets

Year to date 31 Dec 2024
			Other intangible	Other intangible	Other intangible
NOK thousand	Goodwill	Customer relations	assets; Custom software	assets; Technical software	assets; Licenses	Total
Cost at 1 Jan 2024	206 457	58 340	57 439	16 839	11 304	350 378
Additions	0	0	716	0	0	716
Additions - internally developed	0	0	7 392	0	0	7 392
Impairment 1	(24 416)	0	0	0	0	(24 416)
Disposals	0	(7 000)	(2 727)	(2 541)	0	(12 268)
Translation difference	2 217	1 920	909	669	20	5 736
Cost, end of period	184 258	53 260	63 729	14 968	11 324	327 539
Accumulated amortisations at 1 Jan 2024	0	(34 215)	(24 845)	(11 446)	(5 518)	(76 024)
Amortisation	0	(11 197)	(8 656)	(2 842)	(1 741)	(24 436)
Disposals	0	7 000	2 727	2 541	0	12 268
Translation difference	0	(1 019)	(607)	(447)	(18)	(2 092)
Accumulated amortisation and impairment, end of period	0	(39 431)	(31 381)	(12 194)	(7 278)	(90 284)
Carrying amount at 31 Dec 2024	184 258	13 829	32 348	2 773	4 046	237 254
Useful life	Infinite	5 yrs	5–10 yrs	5 yrs	3–10 yrs

¹ An impairment has been recognized of NOK 24.4m relating to the CGU "Hospitality". During the fourth quarter, a decision was made to maintain the customer base, with zero growth within the business area. This is the assumptions used and the goodwill that arose in connection with the acquisition has been fully impaired.

Full year 2023

			Other intangible	Other intangible	Other intangible
NOK thousand	Goodwill	Customer relations	assets; Custom software	assets; Technical software	assets; Licenses	Total
Cost at 1 Jan 2023	204 581	56 799	51 883	13 654	7 752	334 669
Additions	0	0	0	0	3 634	3 634
Additions - internally developed	0	0	12 868	0	0	12 868
Less government grants	0	0	(604)	0	0	(604)
Reclassifications 1	0	0	(2 249)	2 249	7	7
Disposals	0	0	(5 559)	0	(161)	(5 720)
Translation difference	1 875	1 541	1 099	937	71	5 523
Cost, end of period	206 457	58 340	57 439	16 839	11 304	350 378
Accumulated amortisations at 1 Jan 2023	0	(22 162)	(21 290)	(6 684)	(3 381)	(53 517)
Amortisation	0	(11 721)	(9 969)	(3 086)	(2 165)	(26 941)
Reclassifications 1	0	0	1 253	(1 253)	(7)	(7)
Disposals	0	0	5 559	0	84	5 644
Translation difference	0	(332)	(399)	(423)	(50)	(1 204)
Accumulated amortisation and impairment, end of period	0	(34 215)	(24 845)	(11 446)	(5 518)	(76 024)
Carrying amount at 31 Dec 2023	206 457	24 125	32 593	5 393	5 786	274 354
Useful life	Infinite	5 yrs	5–10 yrs	5 yrs	3–10 yrs

¹ Reclassifications made between categories

Note 06 Financial items

	For the quarter end		Year to date
NOK thousand	31 Dec 2024	31 Dec 2023	31 Dec 2024	31 Dec 2023
Finance income
Interest income	119	152	458	563
Realized foreign exchange gains	430	214	1 803	2 149
Net unrealized foreign exchange gains	0	179	0	381
Other financial income	138	(79)	238	115
Total financial income	687	466	2 499	3 208
Finance expenses
Interest on debts and borrowings	(461)	(300)	(1 556)	(1 161)
Interest expense on lease liabilities	(304)	(193)	(1 179)	(1 171)
Realized foreign exchange losses	(593)	(441)	(1 581)	(4 131)
Net unrealized foreign exchange losses	(859)	0	(1 511)	0
Other financial expenses	(1 573)	(2 283)	(2 751)	(2 952)
Total financial expenses	(3 789)	(3 218)	(8 578)	(9 415)
Net financial items	(3 103)	(2 752)	(6 079)	(6 206)

Note 07 Earnings per share

	For the quarter end		Year to date
NOK	31 Dec 2024	31 Dec 2023	31 Dec 2024	31 Dec 2023
Net profit/(loss) to equity holders	(47 846 339)	(10 361 265)	(82 712 957)	(23 052 518)
Total	(47 846 339)	(10 361 265)	(82 712 957)	(23 052 518)
Number of shares
Weighted average number of ordinary shares 1	69 572 206	69 057 322	69 572 206	69 057 322
Effects of dilution, weighted average	4 052 224	382 629	3 400 584	371 097
Weighted average number of shares, adjusted for effects of dilution	73 624 430	69 439 951	72 972 790	69 428 419
Basic earnings per share (NOK)	(0.69)	(0.15)	(1.19)	(0.33)
2 Diluted earnings per share (NOK)	(0.69)	(0.15)	(1.19)	(0.33)

¹ Reverse share split 10:1 in Q1 2023

² If Net loss, EPS per Basic and Diliuted share will be equal

Note 08 Issued shares, share capital and shareholder information

Issued shares and share capital
	Number of shares	Share Capital (NOK)
31 December 2022 690	573 217	193 360 501
Capital issue, February	3	1
Reverse share split (10:1), March (621	515 898)
Capital issue, December	514 884	1 441 675
31 December 2023 69	572 206	194 802 177
30 September 2024 69	572 206	194 802 177

20 largest shareholders at 31 Dec 2024

Holding Stake FERNCLIFF LISTED DAI AS 16 655 404 23.9% TITAN VENTURE AS 3 050 000 4.4% DALLAS ASSET MANAGEMENT AS 2 467 200 3.5% JOAR AARENES 1 768 473 2.5% SRK CONSULTING AS 1 757 476 2.5% ERIK SKAAR OPDAL 1 695 200 2.4% Nordnet Bank AB 1 530 066 2.2% EXCESSION AS 1 100 000 1.6% TRUDE HALVORSEN 1 079 789 1.6% HANEKAMB INVEST AS 1 055 347 1.5% COMPANY ONE AS 934 023 1.3% KRISTIAN FALNES AS 850 000 1.2% MIDDELBOE AS 739 662 1.1% NILS GABRIEL ANDRESEN 622 086 0.9% LARS HUGO BRAADLAND OLSEN 574 850 0.8% Danske Bank A/S 553 700 0.8% LCS AS 551 801 0.8% JAN ARNE CHRISTENSEN 524 675 0.8% NORDLYS TRADING AS 450 000 0.6% VALSET INVEST AS 450 000 0.6% Total 20 largest shareholders 38 409 752 55.2% Other shareholders 31 162 454 44.8% Total 69 572 206 100.0%

Shares held by related parties

	Holding	Stake
COMPANY ONE AS	934 023		1.3% Related to Håkon Reistad Fure, Chairman of the Board in Arribatec Group ASA
FINANCE RESOURCES GJ AS	360 609	0.5% Related to Geir Johansen, CEO of Arribatec Group ASA
TERJE MJØS HOLDING AS	180 000	0.3% Related to Terje Mjøs, Member of the Board in Arribatec Group ASA
SICUBI AS	24 072	0.0% Related to Bente Brocks, CFO (interim) of Arribatec Group ASA
KRISTIN HELLEBUST	22 728	0.0% Related to Kristin Hellebust, Member of the Board in Arribatec Group ASA

Note 09 Interest bearing debt

NOK thousand

Debt financial institutions	Type	Currency	Facility limit	Interest rate	Year of maturity	31 Dec 2024	31 Dec 2023
Danske Bank	Revolving credit facility	NOK	20 000	NIBOR+2.75%	2025, Dec	20 000	19 458
Danske Bank	Revolving credit facility	NOK	15 000	NIBOR+2.75%	2025, Jan	11 625	0
DLL	Leasing & finance company	NOK		4.5%	2024	0	19
Bank Intesa, Italy	Unsecured bank facilities	EUR		EURIBOR+1.95%-2.40%	2027	5 984	7 896
Bank Progetto, Italy	Unsecured bank loan	EUR		EURIBOR+5%	2025	1 322	3 671
Bank Carige, Italy	Unsecured bank loan	EUR		1.3%	2027	4 218	5 681
Bank Passadore, Italy	Unsecured bank loan	EUR		EURIBOR+1.5%	2028	2 105	2 663
Total						45 254	39 388

	Credit facilities	Other borrowings	Total
Balance at 1 Jan 2023	6	24	31
	779	431	211
Proceeds from loans and borrowings	19 686	0	19 686
Repayment of loans and borrowings	(7	(6	(13
	009)	173)	183)
Total changes in financial cashflow	12	(6	6
	677	173)	504
Translation difference	2	1 672	1 674
Balance at 1 Jan 2024	19	19	39
	458	930	388
Proceeds from loans and borrowings Repayment of loans and borrowings	12 167 0	0 (7 372)	12 167 (7 372)
Total changes in financial cashflow	12	(7	4
	167	372)	795
Translation difference	0	1 072	1 072
Total interest bearing debt, end of period	31	13	45
	625	629	254

Note 10 Share issue and warrants

On 2 December 2024, an extraordinary general meeting decided on a rights issue of 350 million shares at a subscription price of NOK 0.10 per share. The shares were traded exclusive the subscription right from 3 December, and the new share capital was registered on 7 February 2025. The rights share issue was fully underwritten, and the same extraordinary general meeting decided to offer 150 warrants to the underwriters as compensation for the underwriting services. The same extraordinary general meeting decided to offer the Board of Directors to subscribe for 60 million shares in connection with the rights issue at a subscription price of NOK 0.10 per share and receive 60 million warrants. Each warrant gives right to subscribe one share for NOK 0.10 per share. The total 210 million warrants are freely tradable and may be exercised at any time until 27 January 2026, and any unexercised warrant will be forfeited after this.

The Company's judgement is that the subscription rights and warrants offered to the Board of Directors had a grant date and were fully vested on 2 December 2024 according to IFRS 2. The fair value of the total 120 million subscription rights and warrants has been estimated to NOK 3.1 million based on a Theoretical Ex-Rights Price (TERP). TERP is used due to the significant theoretical dilution effect of the rights issue, which a market price (stock price) does not reflect. Hence, the use of TERP that is the consensus view to use. The estimated fair value has been recognised as an employee expense with offset to equity. It has also been calculated a social security tax on this with NOK 0.6 million at 31 December 2024.

The share issues will be recognised in 2025. The estimated value of the underwriting services will be a net zero effect directly to equity in 2025.

APMs, terms and abbreviations ^

		For the quarter end Year to date
NOK thousand		31 Dec 2024	31 Dec 2023	31 Dec 2024	31 Dec 2023
EBITDA	BA	(11 717)	1 816	(15 225)	24 463
Share consideration in relation to BoD	Corporate	3 658	0	3 658	0
Restructuring cost	Corporate	4 655	0	4 655	0
Restructuring cost	Cloud	336	0	336	0
Restructuring cost	EA&BPM	1 222	0	1 222	0
Restructuring cost	Business services	2 086	0	2 086	0
Restructuring cost	Hospitality	1 845	0	1 845	0
One-time payment in relation to severance pay	Hospitality	0	0	1 098	0
Penalty fee related to hardware delivery to Flytoget	Hospitality	0	0	934	0
Bad debt expensed in relation to large customer bankruptcy	Cloud	0	0	2 071	0
Adjusted EBITDA		2 084	1 816	2 679	24 463

APM cost is considered as one-time and not part of the ongoing business and are therefore adjusted to show an EBITDA mirroring the underlying business.

KPI definition

APM/KPI	Definition
Gross profit	Operating revenue less materials, software and services
EBITDA	Earnings before Interest, Tax, Depreciation and Amortisation
Adjusted EBITDA	EBITDA, adjusted for restructuring cost and other one-time effects
EBITDA margin	EBITDA as a percentage of Total income
Equity ratio	Equity as a percentage of total assets

Terms and abbreviations

BA	Business Area
BizS	BA Business Services
BoD	Board of Directors
BPM	Business Process Management
Cloud	BA Cloud
EA&BPM	BA Enterprise Architecture & Business Process Management
EBIT	Operating profit, Earning before Interest and Tax
EBITDA	Earnings Before Interest, Tax, Depreciation and Amortisation
EPS	Earnings Per Share

FTE	Full Time Equivalent
Hspt	BA Hospitality
IFRS	International Financial Reporting Standards
Marine	BA Marine
NOK	Norwegian Krone
Opex	Operating expenses
RR	Recurring revenue, derived from sale of services and solutions through subscription models
Saas	Software as a service
Solaas	Solution as a service

Arribatec is a global supplier of digital business solutions that help our customers achieve competitive advantage through innovative use of IT.

+47 4000 3355 info@arribatec.com

Arribatec Group ASA Lørenfaret 1D N-0585 Oslo

Next event 25 April 2025 Annual report

15 May 2025 Q1 report

Contact: ir@arribatec.com