Crayon Group Holding — Investor Presentation 2021

Oct 26, 2021

Quarterly Results Q3 2021

Melissa Mulholland & Jon Birger Syvertsen 26.10.21

Disclaimer

These materials may contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact including, without limitation, those regarding Crayon Group Holding ASA's (the "Company") financial position, business strategy, plans and objectives of management for future operations is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialise or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors, including, among others competition from Nordic and international companies in the markets in which the Company operates, changes in the demand for IT services and software licensing, changes in international, national and local economic, political, business, industry and tax conditions, the Company's ability to realise backlog as operating revenue, the Company's ability to correctly assess costs, pricing and other terms of its contracts, the Company's ability to manage an increasingly complex business, political and administrative decisions that may affect the Company's public customer group contracts, the Company's ability to retain or replace key personnel and manage employee turnover and other labour costs, unplanned events affecting the Group's operations or equipment, the Company's ability to grow the business organically, changes regarding the Company's brand reputation and brand image, fluctuations in the price of goods, the value of the NOK and exchange and interest rates, the Company's ability to manage its international operations, changes in the legal and regulatory environment and in the Company's compliance with laws and regulations, increases to the Company's effective tax rate or other harm to its business as a result of changes in tax laws, changes in the Company's business strategy, development and investment plans, other factors referenced in this report and the Company's success in identifying other risks to its business and managing the risks of the aforementioned factors. Should one or more of these risks or uncertainties materialise, or should any underlying estimates or assumptions prove to be inappropriate or incorrect, our actual financial condition, cash flows or results of operations could differ materially from what is expressed or implied herein. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

This presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. The contents of this presentation have not been independently verified. The Company's securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S of the US Securities Act. This presentation should not form the basis of any investment decision. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such company and the nature of the securities.

Business update

Melissa Mulholland

Q3 2021 Highlights and focus

1	Mergers & acquisitions to accelerate growth
2	People & sustainability focused organization
3	Strong performance

M&A TO DRIVE GROWTH Our expansion journey 2021 Update 80% global coverage through organic business growth and 20 acquisitions The Objective Doubling company size by 2025

GP

M&A TO DRIVE GROWTH

Crayon acquires Sensa, Cloud Direct, and rhipe

M&A TO DRIVE GROWTH SW&Cloud Channel: Strong growth

Software & Cloud channel value chain

Hyper-scalable model with monthly recurring revenue

• Software and Cloud channel is Crayon's license offering to channel partners
• License advisory/optimization, software license sales and access to Crayon's reporting portal
• Crayon is not the customers' direct point-of-contact. Crayon revenue is generated through the channel partner network
• ~100% recurring revenue driven by multiyear agreements with monthly invoicing Have naturally migrated and hosts their applications

M&A TO DRIVE GROWTH

Today's customer portals

Cloud, Software and Services procurement portal for channel and direct customers with self-service capabilities including auto-provisioning, billing and reporting.

Service (O)			Service fl				Chiastican a moncarres a natures		6 mm
A Residential A breakers 8) because A Read Somel A breature . Income	1 - 3 1 -	TERRET A LIBERTA SUBTRE Senior tusk partimary Cranton Trade	Одномон завеление привания привания E	4	belo makes and as be in	8	0	color in the may
& Lanches B birderbak		Acres and BA Describition Carly						1	. .
		Lease Income least MANTAL COLLECTION COLLECTION	ﻣﻬﺎ ﻣﻦ ﺍ Associated controlly Marin Mark Charley. Approxic cases mostry	See p. 4 -------------- MAR MACHAND ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	or pristed ----- ---------	Cast complained sizes ----- 40.1 Blue 2011 24-24	News the store ----- ------ 2013-01-01 1	Town Sweet **** 20-9.94.0 FARIO N Sept Sept	(-1) There Ministerials
		Continental value B londslacionals.com							4 See
		Acres State	NA TATUL Alland Askar macing PECIALISTS Associations and Participants of Armania Comments of Children Comments of Children Comments of Children Comments of Children Comments of Children Comments of Children Comment		Section 2,5 Sept of school 10 04:00 Station of Actively		10 13/15 --------- 8100	Farmerling () Mark Barate 0 energroo 0 usedes
		MARKET THE FERENCE						No Friene Not new

Collaboration platform with tools and modules for Software & Cloud Advisory services. Access to numerous services as risk and reward reports, and comprehensive BI reporting for cost analysis and optimization.

Our current portals and delivery tools are bundled into a single, customizable experience to meet customers' and partners' needs.

M&A TO DRIVE GROWTH Cloud-iQ

Self-service e-procurement platform to manage Software Licenses and Cloud

Easily order software licenses and cloud services from multiple vendors and manage invoicing.

Instant access to new Cloud Accounts, Subscriptions, Licenses and Services after provisioning.

Access to comprehensive BI reports for cost distribution, re-billing and cost optimization analysis.

Self services capabilities on order and provisioning of services, billing profiles and user management.

STRONG PERFORMANCE

Q3 channel highlight | iPulse Systems

About the company:

Randburg, South Africa

iPulse is a dynamic, owner-managed technology business dedicated to building next-generation IoT biometric devices and Cloud Based Access Control Solutions.

iPulse's needs:

• The company decided to pivot its entire range to Microsoft Azure.
• The vision was to fully integrate their market-leading access control system called IQSuite with Azure. iPulse launched IQSuite directly to market and quickly found expense tracking to be a significant pain point.

The Crayon solution

• Crayon's Cloud-iQ platform eliminated the need to keep up with 17,000-line spreadsheets every month by giving iPulse accurate visibility and predictability into their Azure spend.

We needed a partner who really understood our business model and what we were trying to achieve, but I just didn't feel we got that from our existing relationship.

• Gary Chalmers, iPulse Systems CEO

PEOPLE-FOCUSED ORGANIZATION

A unique company culture

When people stand up for each other, help each other and care for each other and go above and beyond for colleagues and company, it's family.

Minimal hierarchy, staying entrepreneurial

Delivering innovative and agile solutions

Diversity

We value diversity and invest in our Crayonites

A family We stay true to our values

Integrity → We are accountable for our actions and inactions

Pace → We are customer-focused and act and execute with urgency

Quality → What we do, we do with excellence and better than anyone else

Agility → We innovate through continuous improvement & adapt quickly to change

Customer-centric

We are cloud-agnostic and customer-centric. Understanding our customer needs is always the priority.

PEOPLE-FOCUSED ORGANIZATION Our team statistics

PEOPLE-FOCUSED ORGANIZATION Talent acquisition

50% of leads are generated through LinkedIn applications

accelerated based on global talent acquisition team with 458 hires to date

Average time from kick off with hiring manager to signature is Hiring 11 weeks

PEOPLE-FOCUSED ORGANIZATION India subsidiary spotlight

Crayon Software Experts India Pvt. Ltd. has received two outstanding certifications:

• Great Place To Work® Certification
• Best Workplaces™ for Women

Certified organizations were studied based on the "Gender Parity in Experience & Representation."

lehastrii
Yeshasvini Ramaswamy
Chief Executive Officer
Great Place to Work" Institute, India

ESG Crayon's 3C strategy for sustainable impact

ESG Crayon's ESG journey

Accelerated growth fueled by services and innovation

1 Adjusted EBITDA – EBITDA adjusted for share based compensation and other one-off income and expenses

STRONG PERFORMANCE

Strong performance across business areas

Software and Cloud Direct	Software and Cloud Channel	Software and Cloud Economics Services	Consulting Services
26% Gross profit growth1	20% Gross profit growth1	18% Gross profit growth1	56% Gross profit growth1
94% Custom Retention2	98% Custom Retention2	78% Custom Retention2	89% Custom Retention2
Significant Customer Wins	Significant Customer Wins	Significant Customer Wins	Significant Customer Wins
Q3 drivers and outlook ✓ Market share gains and product mix improvements – shift towards higher end products ✓ Compelling USP with bundling cost saving services ✓ Highest GP growth in USA & APAC ✓ Competitors vacating the market	Q3 drivers and outlook ✓ Record results driven by long-term relationship partners across Nordics, APAC, US and UK ✓ Dynamics and Azure partner focused investments resulting in new partnerships and positive product mix ✓ Adding on new vendor programs for partners to resell	Q3 drivers and outlook ✓ Continued strong demand for cost optimization of both on prem environments and cloud consumption ✓ Strong demand for supporting commercial and governance side of cloud transition ✓ Very strong growth in US, Germany, Switzerland and Norway	Q3 drivers and outlook ✓ Continued strong growth performance in Norway, Central Eastern Europe, and US with margin gains and key customer wins ✓ Key wins with NRK and Innovasjon Norge through Cloud delivery ✓ Customer expansion in Data & AI

1 Gross profit growth Year over Year ("YoY") | 2 Repeat buy equals 1 minus logo churn. Source: Sales data

STRONG PERFORMANCE

Q3 Software & Cloud Direct AirWair International

About the company:

UK, +2550 employees

Dr. Martens is iconic as one of the most recognized footwear brands in the world, selling 12.7 million pairs of footwear annually in more than 60 countries

AirWair Interntional's needs:

• Consolidate software suppliers globally
• Optimize software procurement and cost
• Accurately license and optimize the Microsoft estate
• Simplify collaboration and security options

The Crayon solution:

• Crayon provided license and cost optimization expertise resulting in 27% annual cost savings in 1 year. To support with collaboration and intelligent support, Crayon provides cloud services for Azure and Modern Workplace resulting in £100k of recurring monthly revenue .

Q3 Consulting Services KEO STRONG PERFORMANCE

About the company:

Kuwait, 2500 employees

KEO International Consultants, one of the top international design firms headquartered in Kuwait

KEO's needs:

▪ KEO International Consultants wanted to adopt cloud technology to stay competitive. They needed to migrate their main services and applications Microsoft Azure.

The Crayon solution:

• Crayon was selected to build a hyperscale cloud migration to Azure to support KEO become more agile, innovative, and scalable.

Crayon is our trusted partner in our transformation journey. With them by our side, we will continue to push digital boundaries." - Damir Jaksic, CIO KEO International Consultants

Q3 Consulting Services Arundo STRONG PERFORMANCE

About the company:

Norway

Founded in 2015, Arundo's proprietary software for asset-intensive industries enables applications for oil and gas, maritime, power, chemicals, and industrial equipment productivity and performance.

AirWair Interntional's needs:

▪ Crayon and inmeta are helping Arundo Analytics to build a more sustainable world by creating data-driven insights for industrial operations.

The Crayon solution:

• Crayon supports Arundo Analytics with three senior data science consultants, working across their product portfolio, in processes competing for contracts with new clients within the energy sector and development for existing maritime clients.

Q3 2021

Financial Review CFO Jon Birger Syvertsen

Q3 2021 - Summary

Continued strong growth trajectory

Accelerating investments into additional capacity

Updated 2021 guidance including rhipe

Strong growth across Nordics in Q3

Compared to corresponding period last year

Gross profit growth %

Q3 2021 FINANCIAL REVIEW Growth across all business areas

Compared to corresponding period last year

Q3 2021 International expansion momentum continues

1 Adjusted EBITDA is reported EBITDA less other income & expenses items netted under HQ, hence not reflected on Market Cluster / Business Area level

• ✓ Continued strong gross profit growth in international markets
• ✓ EBITDA contribution from International markets demonstrates scalability of business model
• ✓ Including Rhipe' LTM numbers would give 54% international GP share

Working capital driven by seasonality

▪ Strong working capital performance a result of continued focus on driving cash flow and collections across all markets

1 Other working capital includes other recievables, income tax payable, public duties payable and other short-term liabilities

Strong liquidity position end Q3

Cash flow from operating activities

▪ Cash flow from operations is seasonal and driven by changes to net working capital

▪ Strong liquidity position of NOK 796m as a consequence of strong business and working capital performance

1 EBITDA (non-adjusted)

2 As seen from the cash flow statement; Acquisitions include business combinations.

3 Also includes cash flow effects from IFRS 16, cash flow from financing activities, etc..

4 Liquidity reserve is reported in the 'Alternative Performance Measures' section in the quarterly report, and is defined as the sum of freely available cash and available credit facilities

LTM Q3 including proforma Sensa and rhipe Q3

Crayon inc Sensa rhipe

LTM gross profit by market cluster NOK million

P&L - summary

NOKm	Q3 2021	Q3 2020	YTD Q3 2021	YTD Q3 2020
Operating revenue	5 147 2 ,	3 668 1 ,	18 741 0 ,	13 967 1 ,
Cost of sales	-4 505 ,5	-3 171 8 ,	-16 652 ,7	-12 289 8 ,
Gross profit	641 8 ,	496 3 ,	2 088 3 ,	1 677 3 ,
Payroll and related costs	-506 ,7	-409 9 ,	-1 477 6 ,	-1 255 3 ,
Other operating expenses	-74 ,7	-54 1 ,	-209 4 ,	-186 8 ,
Total operating expenses	-581 4 ,	-464 0 ,	-1 687 0 ,	-1 442 1 ,
EBITDA	60 4 ,	32 3 ,	401 4 ,	235 3 ,
Depreciation	-16 ,7	-13 9 ,	-48 4 ,	-39 6 ,
Amortisation	-24 ,7	-21 9 ,	-68 8 ,	-63 ,5
EBIT	19 1 ,	-3 ,5	284 1 ,	132 2 ,
Interest expense	25 4 ,	8 ,7	45 2 ,	31 9 ,
Other financial expense, net	121 4 ,	10 ,5	153 6 ,	32 6 ,
Ordinary result before tax	-127 ,7	-22 ,7	85 3 ,	67 6 ,
Income tax expense on ordinary result	-12 3 ,	3 9 ,	-45 4 ,	-35 ,5
Net (loss) income	-140 0 ,	-18 8 ,	39 9 ,	32 1 ,
Adjusted EBITDA reconciliation
Reported EBITDA	60 4 ,	32 3 ,	401 4 ,	235 3 ,
Other income and expenses	21 0 ,	31 6 ,	28 9 ,	40 ,5
Adjusted EBITDA	81 4 ,	64 0 ,	430 2 ,	275 ,7

Depreciation and amortization in line with plan

Interest expenses increased YoY due to higher RCF costs and accrued interest on new bond loan

Other financial expenses increase due to accounting effect of hedging on expected AUD cash outflow from Rhipe acquisition

Net profit in Q3 2021 decreases with NOK 121.2m – stable if excluding the impact on other financial expenses

Balance sheet and net interest-bearing debt

NOKm		30.09.2021 30.09.2020
ASSETS
Development Costs	92,7	86,5
Technology and software	12,9	22,0
Contracts	164,1	61,7
Software licenses (IP)	2,0	2,3
Goodwill	926,6	870,0
Deferred tax asset	50,3	36,0
Total intangible assets	1 248,5	1 078,5
Equipment	43,1	39,8
Right of use assets	118,8	133,9
Total tangible assets	161,9	173,7
Other non-current receivables	70,1	22,4
Investment in associated companies	36,0	0,0
Inventory	5,5	13,4
Accounts receivable	3 267,4	2 528,6
Other current receivables	604,4	188,2
Short term deposits	1 782,0	0,0
Cash & cash equivalents	796,3	412,8
Total current assets	6 455,6	3 143,0
Total assets	7 972,1	4 417,6
LIABILITIES AND SHAREHOLDERS' EQUITY Share capital Own shares	84,0 0,0	81,2 0,0
Share premium	1 053,5	914,2
Sum paid-in equity	1 137,5	995,4
Retained Earnings	92,4	2,7
Total equity attributable to parent company shareholders1 229,8		998,1
Non-controlling interests	19,0	-7,4
Total shareholders' equity	1 248,9	990,7
Bond loan	297,1	294,6
Deferred tax liabilities	13,9	23,7
Lease liabilities	96,2	108,6
Other non-current liabilities	61,7	72,7
Total long-term liabilities	468,8	499,7
Accounts payable	3 106,0	2 252,5
Income taxes payable	64,4	38,3
Public duties	330,1	97,0
Current lease liabilities	31,3	31,2
Other current interest bearing debt	1 890,0	67,3
Other current liabilities	832,7	441,0

Total liabilities 6 723,2 3 426,9 Total equity and liabilities 7 972,1 4 417,6

	30.09.2021	30.09.2020
Long-term interest bearing debt	300,0	303,8
Lease liabilities	96,2	108,6
Current lease liabilities	31,3	31,2
Other current interest bearing debt	1 890,0	67,3
Short term deposits	-1 782,0	0,0
Cash and cash equivalents	-796,3	-412,8
Restricted cash	63,6	17,3
Net interest bearing debt (NIBD)	-197,2	115,4

• The Company reports its cash balance net of drawdown on its revolving credit facility ("RCF")

• Approx. NOK 556m of goodwill relates to the Oslo Stock Exchange delisting of Inmeta-Crayon in 2012
• Note that bond transactional costs of around NOK 7m are capitalized , and accretion expensed over the lifetime of the bond, cf. IAS 39
• Development costs increase y-o-y due to investment in ERP and Cloud IQ platforms.
• Increase in contracts and goodwill mainly driven by the acquisition of Sensa.
• New bond for financing Rhipe included in Q3 balance sheet as short term debt / short term deposit
• The strong balance sheet supports the Rhipe acquisition and the M&A strategy

Cash flow development

NOKm	Q3 2021	Q3 2020	Q3 YTD 2021	Q3 YTD 2020
Net income before tax	-127 7 ,	-22 7 ,	85 3 ,	67 6 ,
Taxes paid	-27 1 ,	-5 3 ,	-52 3 ,	-20 7 ,
Depreciation and amortisation incl impairment ,	41 3 ,	35 9 ,	117 2 ,	103 1 ,
Net interest expense	22 8 ,	7 5 ,	38 6 ,	24 5 ,
Changes in inventory AR/AP¹ ,	-280 4 ,	-942 4 ,	-324 6 ,	-83 2 ,
Changes in other assets/liabilities current	-172 8 ,	-313 4 ,	-179 1 ,	-125 1 ,
Net cash flow from operating activities	-543 8 ,	-1 240 5 ,	-314 9 ,	-33 8 ,
Interest paid credit institutions and interest bond loan to to	-3 7 ,	-6 0 ,	-16 4 ,	-37 5 ,
/ Other New Equity	-1 4 ,	1 2 ,	-5 2 ,	305 5 ,
Net debt new	-13 0 ,	-13 4 ,	-38 4 ,	0 9 ,
Net cash flow from financing activities	-18 1 ,	-18 3 ,	-60 0 ,	268 9 ,
Acquisition of assets	-18 2 ,	-17 7 ,	-53 3 ,	-52 6 ,
Acquisition of subsidiaries - (net of cash acquired)
and associated companies/ Business combinations	-36 0 ,	0 0 ,	-158 6 ,	-12 6 ,
flow from Net cash investing activities	-54 2 ,	-17 7 ,	-211 9 ,	-65 2 ,

• Cash flow from operations in Q3 driven by change in net working capital performance and strong underlying business performance.
• Acquisition of assets in Q3 2021 of NOK 18.2m mainly relates to investments in new ERP system and Cloud IQ platform.
• Investment in associated companies in Q3 2021 of NOK 36m, primarily related to Cloud Direct (UK)

Outlook

2021 OUTLOOK 2021 margin outlook updated

	2020 actuals	LTM actuals	2021 outlook	Medium term	Comment
Gross profit growth	+29.6 %	+25.0%	20-25% 28-30%	+15-20 % ~20%	Continued strong growth momentum from investments into the business; Rhipe consolidated in November/December
Adjusted EBITDA as share of gross profit	17.6%	20.6%	~20% 20-21%	Gradually increase to 19% 22%	Continuing to invest while seeing scale benefits in Q4; Rhipe consolidated in November/December
NWC1	-30.2 %	-25.8%	-20% to -25%	-15% to - 20%	Expect to sustain ~half of the 2020 NWC improvement medium term
Capex	NOK 81.4m	NOK 82.0m	NOK 80-85 m	NOK~85m	Continued investments in platforms and IP

Q&A

Appendix

Q3 2021 APPENDIX

International EBITDA margins continue to improve

LTM adjusted EBITDA margin¹

1 Adjusted EBITDA as share of Gross Profit

• Nordics with continued strong EBITDA margins
• APAC&MEA and Europe EBITDA margins improving as business scale
• Continued positive EBITDA margin in the US

3 LTM vs previous LTM period

LTM gross profit by market cluster

Strong Q3 performance leads to 25% LTM growth

NOK million Growth rate¹ 20% 29% 33% 33% n/a 25% margin³ 1 LTM vs previous LTM period 2 Adjusted EBITDA as share of Gross Profit 363 Nordics ^{1 426 592} Total 392 Europe APAC & MEA US 17 HQ/Elim 2 756

Strong growth across markets in Q3

YoY gross profit growth by market cluster NOK million

YoY Adj EBITDA growth by market cluster NOK million

3 LTM vs previous LTM period

Strong performance across SW&Cloud and Services

LTM gross profit by business area NOK million

LTM adjusted EBITDA by business area NOK million

NOK million

YoY gross profit growth by business area

Strong GP growth across markets and segments

YoY Adj EBITDA growth by business area NOK million