Crayon Group Holding — Earnings Release 2023

May 23, 2023

Crayon Q1 2023: Strong growth and improved profitability

Crayon Q1 2023: Strong growth and improved profitability

Crayon Group Holding ASA (OSE: CRAYN) today reported its first quarter results with a gross profit growth of 31%, driven by strong demand for software and cloud services, particularly in the Nordics and across Europe.

Financial highlights:

Gross Profit NOK 1.258m Up 31% (23% constant currency)

Adjusted EBITDA NOK 185m Up 50%

EBIT NOK 102m Up 117%

Cash flow from operations NOK 69m Up 397m

“While the global tech market continues to be impacted by the challenging macroeconomic climate, our focus on our core business model supports our resiliency,” said Crayon CEO Melissa Mulholland. “We see a strong demand for optimization and innovation across all our markets, and our customer centricity ensures we can deliver on those demands.”

Adjusted EBITDA increased 50% to NOK 185m reflecting a margin of 14.7%, an improvement of 1.9 bps compared to last year.

Operating profit increased NOK 55m from NOK 47m in the same quarter previous year.

Net income before tax ended at minus NOK 110m, mainly due to negative currency effects of NOK 152m driven by revaluation of balance sheet items. Positive effect from currency translation of subsidiaries to NOK in net comprehensive income amounted to NOK 197m, whereof cash related currency translation amounted to 86m.

High attention to efficient cash collection is showing results and cashflow from operations ended at NOK 69mm, an improvement of NOK 397m compared to Q1 2022. This is driven by a strong net working capital improvement, despite a significant negative impact from outstanding receivable from Philippine public sector of USD 45m.

The financial report and presentation for Q1 2023 are enclosed and available at https://www.crayon.com/investor-relations/

CEO Melissa Mulholland and CFO Jon Birger Syvertsen will present the results in a live webcast at 8:30 am CET that can be accessed at www.crayon.com/investor-relations. It will be possible to submit questions online. A recording of the webcast will be available on-demand after the live event has concluded.

Investor contact:

Kjell Arne Hansen

Head of Investor Relations

ir@crayon.com

+47 950 40 372

About Crayon:

Crayon is a customer-centric innovation and IT services company with over 3,700 team members across 46 countries. We optimize businesses’ IT estate to help them innovate with expertise they can trust. Our services create value for companies to thrive today, and scale for tomorrow. For more information, visit www.crayon.com.