Crayon Group Holding — Earnings Release 2022

Feb 14, 2023

Crayon Q4 2022 and year-end results: Strong growth in international markets

Crayon Q4 2022 and year-end results: Strong growth in international markets

Crayon Group Holding ASA (OSE: CRAYN) today reported its fourth-quarter results demonstrating resilient market demand with continued strong growth across all regions and business areas.

Gross Profit grew with 27% compared to the same quarter last year, while Adjusted EBITDA grew 24% to NOK 258m, reflecting a margin of 20.3%, at the same level as the comparable period in 2021. Cashflow from operations ended at NOK 478m.

Growth was particularly strong in international markets with all markets outside the Nordics delivering above 30% organic Gross Profit growth. International markets now represent 59% of Gross Profit compared to 51% in 2021.

Financial Highlights Q4 2022

Gross Profit NOK 1.272m (1.006m) NOK 4.496m (3.165m)

Adjusted EBITDA NOK 258m (206m) NOK 839m (644m)

The above financials are based on restated numbers according to final implementation of agent principle under IFRS 15.

For comparability, key figures based on historical accounting policy:

Financial Highlights Q4 2022

Gross Profit NOK 1.302m (951m) NOK 4.353m (3.040m)

Adjusted EBITDA NOK 287m (225m) NOK 890m (655m)

We refer to note 3 -significant accounting principles and note 6 - Segment Information for further details.

“Our financial results exemplify the resilient demand we see in the market,” said Crayon CEO Melissa Mulholland. “We continue to see incredible growth across all our regions and business areas, based on our customer-centric business model.

“Despite ongoing economic pressures in the tech sector, we continue to see resiliency with our customers and partners. From requiring cloud-based solutions to deliver increased productivity and efficiencies in their business, to the increased need to secure their environment and digitize their data estate,” Mulholland said.

2023 Full year guidance

- Gross profit ~20% (2022 42%)

- Adjusted EBITDA 20-21%(2022 18.7%)

- Average net working capital / gross profit –5% to –15% (2022-0.8%)

- Capex NOK 125 (2022 142m)

Background: final implementation of agent principle according to IFRS 15.

On April 20, 2022, the IFRS Interpretation Committee (IFRIC) concluded on principal vs agent assessment under IFRS 15 for Software Resellers. The impact for Crayon is that we for certain contracts are considered as an agent for the software company rather than a principal, and the software company becomes our customer rather than our vendor. Our revenues consist of our margin on the invoices to the end user and any rebates or incentives from the software company rather than the gross value of our invoice to the end user. Crayon must recognize these revenues when we have fulfilled our performance obligations towards our customer. Our performance obligation towards our customer acting as an agent is to arrange for the sale of licenses, that will be fulfilled upon final registration of the order, and not over the service period towards the end user.

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.