Carasent

Investor Presentation • May 9, 2018

Valuation of Evimeria – Presentation to AGM

Strictly private and confidential • 9 May 2018

DANSKE BANK

Denmark Holmens Kanal 2–12 1092 Copenhagen K

Finland Pohjoisesplanadi 37A 00100 Helsinki

Norway Bryggetorget 4 0107 Oslo

Sweden Norrmalmstorg 1 103 92 Stockholm United Kingdom 75 King William Street London EC4N 7DT

United States 280 Park Ave. 35th Fl 10017 New York

Summary

Background and Methodology

• The Board of Directors of Apptix ASA has retained Danske Bank A/S Sverige filial to perform a valuation of Evimeria EMR AB ("Evimeria" or the "Company") in connection with a potential acquisition by Apptix.
• Danske Bank has based the assessment on the following information, provided by the Company:
• ‒ A presentation and Q&A session with management of Evimeria (Jesper Jannerberg, Lars Forsberg, Niclas Hugosson and Dennis Höjer participating) at the Company's premises in Gothenburg on 23rd February 2018
• ‒ A company presentation
• ‒ Financial forecasts until 2022
• Danske Bank has assumed that the information received is complete and accurate and gives a fair and representative view of the Company and its business. We have asked the questions we considered necessary for our work, but no due diligence has been performed.
• The valuation is indicative of a full market value valuation of 100% of the shares in Evimeria assuming control.
• The valuation is made from the perspective of a neutral financial investor under the assumption that the business is a going concern.
• The valuation is based on three generally accepted valuation methodologies: Discounted Cash flow analysis, analysis of Comparable listed companies and analysis of Comparable precedent transactions
• The overall valuation range has been determined by means of a weighted assessment of the values generated by the Discounted Cash flow and the comparable company analysis.
• ‒ Precedent transaction multiples have been considered as an additional reference point of the value given by the two other methods

Danske Bank's valuation assessment

● Based on the described methodology and the information provided, we estimate the market value of the shares in Evimeria at SEK 108 million corresponding to an Enterprise value of SEK 107 million.

Financial forecast – Provided by the company

Continued strong growth driven by increasing installed base. Further margin improvements related to the scalability of the business

Revenue and margin, SEKt

Sales Growth

• Sales are forecasted to grow by 43% in 2018E, mainly driven by an increase in sales of licenses generated by existing customers (organic growth from customers) and by growth in revenue from additional services provided to new and existing customers. Evimeria forecasts additional services to amount to 67% of the corresponding revenue from licenses in 2018E.
• Top-line growth is expected to continue well after 2018E, and is expected to derive mainly from increased licence revenue and a bigger share of revenue from additional services.
• ‒ Growth in licence revenue is forecasted to be driven by the addition of one new customer per week, with a monthly revenue of 4,000 SEK. Organic growth in existing customers is forecasted to be 20% annually, with a low churn rate in the customer base
• ‒ Additional services revenues are expected to grow to above 90% of the corresponding revenue from licenses in 2022E
• The business model built on recurring revenue and organic growth allows for safe forecasts. In particular, 2019E forecasts for licence revenues can be considered quite reliable.
• Steady state after 2022E at a terminal growth rate at the Swedish inflation target of 2%.

Margins

• EBITDA margin is forecasted to increase from 20.4% in 2017A to 40.6% in 2022E. This substantial increase is derived from Evimeria's ability to sell software licenses to a larger customer base without a corresponding increase in costs, thanks to the scalability of its solution. Additionally, the Company forecasts an increase in revenues from additional services with high margins.
• Indirect costs such as personnel expenses and other expenses are projected to increase at a significantly lower pace than top-line growth. The Company forecasts increases in costs in 2018E to be related to the relocation to new premises, and to an increase of 9 employees from 2017A to 2020E (+4 support staff, +2 delivery, +3 developers).
• EBIT margin is also expected to develop from 14.7% in 2017A to 36.9% in 2022E. Depreciation costs as a percentage of sales will decrease from 5.7% in 2017A to 3.7% in 2022E, contributing to the EBIT margin improvement.

Valuation summary of comparable valuation

Comparable listed companies and transactions

• Through applying the multiples from comparable listed companies and transactions on Evimeria historical and forecasted results, the Enterprise value has been calculated in the graph to the right.
• Each range is equivalent of the min max multiples of the previously described health-tech group of comparable companies.
• The highlighted points are the indicative Enterprise values if Evimeria would be valued at the same level as one of its competitors in the Swedish market: CompuGroup Medical.
• The combined valuation methods give an indicative value interval for the Enterprise value of approximately SEK 110–140 million.
• The valuation range is based on Evimeria's 2018E EBITDA, which in our view is what investors primarily would benchmark the Company against given the rapid growth and short track record of the Company.
• In positioning the Company we have considered the small size of Evimeria compared to peers its higher growth rate resulting in a valuation at a premium to CompuGroup medical based on the 2018E numbers.
• In the comparison we have included Frisq, a Swedish listed Company with similar business environment and characteristics as Evimeria
• ‒ Since Frisq neither has reported any revenues and has negative results, the Enterprise value of Frisq shall be seen as a reference point and indicative of the perceived value of Frisq's technical platform and hopes of large future expansion of the company.

Source: S&P Capital IQ, Danske Bank analysis

Enterprise value based on comparable companies and transactions, SEKm

Discounted cash flow – two adjusted methods applied

Alternative approaches in an attempt to model how private investors would to think about the opportunity

Valuing Evimeria from an external investor perspective

• Given the early stage of the Company in its current form and the rapid forecasted growth of the Company, Danske Bank considers it highly unlikely that an external investor would pay the full DCF value of the Company calculated in the "Standard DCF" slide (page: 10).
• To account for the uncertainty that exists in the forecast provided up until 2022E and the higher uncertainty that is inherent in the future development of the Company after the forecast period Danske has employed two additional DCF methods to simulate the fair value of Evimeria.
• The methods take the view of an investor that 1) has a higher risk premium on the cash flow due to the uncertainty of the cash flow (Private investor view) and 2) an investor that only views the explicit forecast as secure enough to include in the valuation.
• The methods and resulting enterprise value of Evimeria are presented below together with key changes in the assumptions to the Standard DCF calculation.

Key characteristics of the method

• Takes the view of an external investor with a higher risk premium on the Company's long term performance
• DCF method: Complete DCF including terminal value
• Risk premium: An additional risk premium of 15%
• Forecast: Based on management estimates

Private investor view Secured cash flow view

Key characteristics of the method

• Bases the valuation on the management forecast and considers the cash flows to be secure
• DCF method: Value of forecast No terminal value
• Risk premium: Calculated WACC with no additional risk premium
• Forecast: Based on management estimates

DCF value

SEK 107 million

DCF value SEK 74 million

Discounted free cash flow – Private investor view

Applying a significantly higher discount rate, including the terminal value, results in an estimated EV of SEK 107 m

Valuation based on discounted Free cash flow, SEKt

• The cash flow valuation is based on discounted Free cash flows (DCF). The cash flows are based on forecasts provided by Evimeria that have been reviewed and adapted by Danske Bank. The Free cash flows are discounted with a discount rate (WACC) of 19.5%. The valuation date is set to 1 March 2018.
• The DCF indicates an enterprise value of SEK 107 million with an interval of approximately SEK 93–126 million based on the sensitivity analysis.
• Further description of valuation theory applied, sensitivity analysis and calculations of WACC are available in the appendix.

	2018E1	2019E	2020E	2021E	2022E	Terminal value2
Sales	33,446	57,621	78,408	99,189	122,750
Sales growth	42.6%	43.6%	36.1%	26.5%	23.8%
EBIT	5,130	13,482	23,588	33,336	45,337
EBIT-margin	15.3%	23.4%	30.1%	33.6%	36.9%
Tax (22%)	(1,129)	(2,966)	(5,189)	(7,334)	(9,974)
EBIT after tax	4,001	10,516	18,399	26,002	35,363
Add-back Depreciation	1,887	3,033	3,951	3,398	4,543
CAPEX	(3,208)	(4,585)	(5,037)	(5,727)	(6,318)
Change in Net working capital	509	587	(327)	112	666
Free cash flow	3,190	9,551	16,986	23,785	34,254	145.843
Discount period	0.4	1.3	2.3	3.3	4.3	5.3
Discount factor	0.9	0.8	0.7	0.6	0.5	0.4
Present value of Free cash flows	50,704
Present value of Terminal value	56,474
EV	107,178
Current Net debt	(519)
Equity Value	107,697

1) Figures calendarised to valuation date 2) Terminal value calculated with an additional level of conservatism utilising long-term EBITDA margin of 28.5% and Cash Conversion/EBITDA of 70.0% Source: Evimeria, Danske Bank analysis

Value of Evimeria - Conclusion

Based on the information received and the analysis performed, we estimate the enterprise value of Evimeria at SEK 93-126 million

Comments

• The graph to the right is summarising the intervals for Enterprise value from the comparable valuation and the Free cash flow valuation.
• Comparable companies indicate an Enterprise value between approximately SEK 110–140 million.
• Comparable transactions indicate an Enterprise value between approximately SEK 35–215 million.
• The cash flow valuation indicate an Enterprise value between approximately SEK 93–126 million and a spot estimation of value at approximately SEK 107 million when utilising the Private investor view method.
• The cash flow valuation indicate an Enterprise value between approximately SEK 65–83 million and a spot estimation of value at approximately SEK 74 million when utilising the Secured cash flow view method.

Indicative value of Evimeria

• The indicative value of Evimeria is estimated to SEK 107 million, which is the midpoint of the Private investor view discounted cash flow valuation but is lower than the valuation based on comparable companies.
• The combined valuation range for Evimeria's enterprise value is estimated between SEK 93–126 million.
• With a Net Debt of SEK (0.5) million at the end of 2017A, the valuation range is indicative of an Equity value between SEK 94–127 million.
• Equity value in the range and implied valuation multiples for Evimeria based on the forecast provided by the Company is presented in the tables to the right.

110 35 93 65 140 215 126 83 107 Trading comparables Comparable transactions DCF – Private investor view DCF – Secured cash flow view

20 40 60 80 100 120 140 160 180 200 220 240

Valuation range Midpoint valuation

Valuation summary, SEKm

Source: S&P Capital IQ, Danske Bank analysis

IMPORTANT NOTICE

This presentation is for the exclusive use of the persons to whom it is addressed and neither the presentation nor its contents may be distributed, published, reproduced or disclosed to any other person or used for any purpose without the prior written consent of Danske Bank AB, Corporate Finance Sweden ("Danske Bank").

This presentation has been prepared by Danske Bank on the basis of certain information ("Information") in relation to Evimeria (the "Company") derived from the Company, external sources and/or the public domain. Danske Bank has relied upon and assumed the accuracy and completeness of the Information without undertaking any independent verification thereof. Danske Bank hereby disclaims any and all liability in relation to the content of this presentation.

This presentation may contain certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that relate to the future constitute forward looking information. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results to differ materially from those discussed in the forward-looking information, and even if such actual results are realised or substantially realised, there can be no assurance that they will have the expected consequences or effects.

This presentation is not intended to form the basis of any investment decision. It does not constitute an offer or invitation for the sale or purchase of any securities or interest.

This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by Danske Bank.

This presentation is subject to substantive Swedish law and any actions, suits or proceedings arising out of or relating to this presentation shall be submitted to Swedish courts.