Crayon Group Holding — Earnings Release 2017

Feb 20, 2018

Crayon Group Holding ASA: Financial results Q4 2017 - Continued strong commercial momentum

Crayon Group Holding ASA: Financial results Q4 2017 - Continued strong commercial momentum

Oslo, 20 February 2018: Crayon Group Holding ASA ("Crayon" or the "Company", OSE ticker code "CRAYON") reports another consecutive quarter of positive year-over-year ("YoY") organic revenue and gross profit growth across all business areas and market clusters. Q4 2017 revenue growth was 25%, and gross profit growth was 9%, compared to Q4 2016, demonstrating a strong commercial momentum.

Adjusted EBITDA in Q4 2017 decreased by MNOK 6 (compared to Q4 2016) to MNOK 57.7, resulting in a FY 2017 EBITDA of MNOK 131 (an increase of MNOK 26 or 26% compared to 2016). The YoY EBITDA decrease in Q4 2017 was largely explained by unexpected partner incentive changes impacting the business area Software Indirect in the Nordics. The combined EBITDA in Q4 2017 outside the Nordics improved by MNOK +6 YoY, largely explained by stable and healthy EBITDA margins in the Consulting Division and business area Software Direct.

"Crayon continued to demonstrate strong commercial momentum across all business areas and market clusters, delivering global best-in-class cloud mix within our Software Division and improving profitability within our Services Division. Despite a relatively week Q4 2017 in the Nordics from a profitability perspective, we see a strong outlook for the region and are confident that profitability will be restored in 2018.", commented Crayon CEO Torgrim Takle.

Financial Key figures for Q4 2017:

- Revenue of MNOK 2,292 in Q4 2017, compared to MNOK 1,827 in Q4 2016.

- Gross profit of MNOK 362 in Q4 2017, compared to MNOK 332 in Q4 2016.

- Adjusted EBITDA of MNOK 58 in Q4 2017, compared to MNOK 64 in Q4 2016.

- Strong cash flow from operating activities in Q4 2017 (NOK 350m), resulting in a FY 2017 cash conversion ratio of 117% (operating cash flow as percentage of adjusted EBITDA)

The interim financial report and presentation for Q4 2017 are enclosed.

The report, presentation and webcast of the presentation will be made available at https://www.crayon.com/en/about-us/investor-relations/

For further queries, please contact:

Torgrim Takle, Chief Executive Officer

Crayon Group Holding ASA

Tel.: +47 95 14 07 82

Email: torgrim@crayon.com

Magnus Hofshagen, FP&A Director / Head of IR

Crayon Group Holding ASA

Tel.: +47 48 49 91 95

Email: magnus.hofshagen@crayon.com

About Crayon

Crayon Group Holding ASA is a leading IT advisory firm in software and digital transformation services. With unique IP tools and skilled employees, Crayon help optimize its clients' ROI from complex software technology investments. Crayon have long experience within volume software licensing optimization, digital engineering, predictive analytics and assists the clients through all phases of the process of a digital transformation. Headquartered in Oslo, Norway, the company has approximately 1,100 employees in 43 offices worldwide.