Crayon Group Holding — Investor Presentation 2021

Feb 16, 2021

Torgrim Takle Jon Birger Syvertsen Hilde Thomassen

FEBUARY 16, 2021

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 Q4 2020

CEO Torgrim Takle

Q4 2020 Highlights

1 Record-Breaking Financial Quarter & FY 2020
2 Strong Performance Across Markets & Business Areas
3 Significant Public Sector Wins & Momentum	" "What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry.
4 Lifted Medium-Term Financial Guidance	" Satya Nadella, Microsoft CEO 26 January 2021

Q4 2020 HIGHLIGHTS 12th Consecutive Record-breaking Quarter 1

Compared to corresponding period last year

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

Q4 2020 HIGHLIGHTS 2 Strong Performance Across Markets

Compared to corresponding period last year

Q4 2020 HIGHLIGHTS 2 Strong Performance Across Business Areas

1 Gross profit growth Year over Year ("YoY") 2 EBITDA as a percentage of gross profit

YoY change

Q4 2020 HIGHLIGHTS 3 Public Sector: Strong Momentum & International Potential

1 Market proxy based on Microsoft FY 2020 revenues (public sector revenue as percent of total revenue)

Financial Review

Q4 2020 CFO Jon Birger Syvertsen

Q4 2020 - Summary

3

Margin improvement across all regions, break-even in US

Strong growth across markets in Q4

YoY gross profit growth by market cluster NOK million 51 141 37 31 23 Total -2 Nordics Europe APAC & MEA US HQ/Elim NOK million 8 39 9 Nordics HQ Europe Total APAC & MEA US -6 + 33% + 62% + 36% + 17% + 27%

YoY Adj EBITDA growth by market cluster

Strong GP growth across markets and segments

YoY gross profit growth by business area NOK million

YoY Adj EBITDA growth by business area NOK million

2020 investments in growth set the stage for 2021

Change from 2019 to 2020; NOK millions

• Continued investments into new resources and capabilities across all markets, with ~370 FTEs added YoY
• Onboarding new resources is a short-term drag to profitability, but enables gross profit and EBITDA growth in future periods as the resources are fully ramped up

Q4 2020

International expansion momentum continues

Gross profit NOK million Adjusted EBITDA¹ NOK million ^{762 763 905} 1 036 1 235 ^{439 558 774} 1 119 ^{349 17 13} -2 2016 2017 23 2018 -9 2019 2020 ^{1 128 1 216 1 486 1 809} 2 345 ^{205 180 266} 105 -82 335 415 -81 -108 413 -17 -64 2016 -22 -28 -14 2017 2018 38 2019 2020 105 131 188 292 31% International GP share 36% 38% 43% 48%

• Continued gross profit growth in international markets – 3.2x growth since 2016
• EBITDA contribution from International markets continue to improve – triple digits for the first time

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

International EBITDA margins continue to improve

LTM adjusted EBITDA margin¹

• Nordics with continued strong EBITDA margins
• APAC&MEA EBITDA margins improving
• Europe EBITDA margins negatively influenced by investments into CEE
• Positive EBITDA margin in the US

Working capital driven by seasonality

2020 Q4 net working capital NOK million Net working capital over time NOK million • Q4 2020 net working capital is 641 million more negative than Q4 2019, driven by a decrease of trade working capital of 364 MNOK and a decrease in other working capital of 277 million • Improvement driven by a combination of improved credit and collection processes and favorable deal timing 3 393 Accounts receivable Accounts payable -3 ⁵⁶⁰ Inventory 9 -158 Trade working capital -821 Other working capital¹ -979 Net working capital -343 -65 -718 -25 -338 -395 -1 363 -99 -979 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

• Clear trend during 2020 of improved working capital position

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

Strong liquidity position end Q4

• Cash flow from operations is seasonal and driven by changes to net working capital, with strong positive cash flow in the quarter as Q4 working capital is more negative than Q3
• Strong liquidity position of 1.6bn as a consequence of strong business and working capital performance combined with the NOK 300mn equity raise in May

1 EBITDA (non-adjusted)

2 As seen from the cash flow statement;

3 297 MNOK new equity from share issue June 2020, 24.6 MNOK in December 2020 from option exercise and 38.5 MNOK in Q4 2020 from ESPP program

4 Also includes cash flow effects from IFRS 16, cash flow from financing activites etc

5 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

P&L - summary

NOKm	Q4 2019	Q4 2020	YTD Q4 2019	YTD Q4 2020
Operating revenue	4 235,7	5 632,3	13 618,0	19 599,5
Cost of sales	-3 709,1	-4 964,9	-11 809,3	-17 254,7
Gross profit	526,6	667,4	1 808,7	2 344,8
Payroll and related costs	-362,9	-461,4	-1 312,7	-1 716,7
Other operating expenses	-79,7	-59,8	-246,1	-246,7	• Interest expense reduced following the
Total operating expenses	-442,6	-521,3	-1 558,8	-1 963,4
EBITDA	84,0	146,2	249,9	381,4
Depreciation Amortisation	-11,0 -78,6	-14,5 -22,7	-40,6 -132,2	-54,1 -86,2	• Income tax expenses increases as a
EBIT	-5,6	109,0	77,1	241,1
					in profitability
Interest expense	15,3	9,2	59,8	41,1
Other financial expense, net	10,9	-26,3	7,7	6,3
Ordinary result before tax	-31,8	126,0	9,6	193,7
Income tax expense on ordinary result	-6,3	-31,4	-28,9	-66,8
Net (loss) income	-38,1	94,7	-19,3	126,8
					compensation
Adjusted EBITDA reconciliation
Reported EBITDA	84,0	146,2	249,9	381,4	Net profit in 2020 of 127 million •
Other income and expenses	13,9	-9,0	42,3	31,5
Adjusted EBITDA	97,9	137,2	292,2	412,9

• Depreciation and amortization in line with plan, with no year-end impairments in 2020
• Interest expense reduced following the refinancing of the bond, while net financial expense is negative due to currency effects
• Income tax expenses increases as a consequence of the significant improvement in profitability
• EBITDA adjustments in Q4 2020 reduces EBITDA with NOK 9m, driven by 17.6 million related to a forgivable loan in the US partly offset by 8.6 million related to share-based compensation

Balance sheet and net interest-bearing debt

NOKm		31.12.2019 31.12.2020
ASSETS
Development Costs	86,6	88,8
Technology and software	26,8	18,5
Contracts	69,8	60,4
Software licenses (IP)	1,0	2,2
Goodwill	829,3	850,9
Deferred tax asset	23,2	35,5
Total intangible assets	1 036,7	1 056,3
Equipment	35,4	38,6
Right of use assets	118,3	120,1
Total tangible assets	153,7	158,7
Other long-term receivables	25,6	40,0
Inventory	14,0	8,8
Accounts receivable	2 553,5	3 393,4
Other receivables	156,3	263,3
Cash & cash equivalents	238,8	1 394,1
Total current assets	2 962,6	5 059,7
Total assets	4 178,6	6 314,6

LIABILITIES AND SHAREHOLDERS' EQUITY

Total equity and liabilities	4 178,6	6 314,6
Total liabilities	3 593,2	5 211,5
Total current liabilities	3 132,7	4 751,9
Other current liabilities	440,7	784,0
Other short-term interest bearing debt	45,1	75,9
Current lease liabilities	26,1	31,2
Public duties	235,2	250,9
Income taxes payable	24,4	49,8
Accounts payable	2 361,2	3 560,0
Total long-term liabilities	460,5	459,6
Other long-term liabilities	42,0	47,5
Lease liabilities	95,5	95,3
Deferred tax liabilities	29,7	21,5
Derivative financial liabilities	0,1	0,0
Bond loan	293,2	295,2
Total shareholders' equity	585,4	1 103,2
Non-controlling interests	-8,1	3,3
Total equity attributable to parent company shareholders	593,5	1 099,8
Retained Earnings	-105,3	41,3
Sum paid-in equity	698,8	1 058,6
Share premium	622,1	976,9
Own shares	0,0	0,0
Share capital	76,6	81,7

	31.12.2019	31.12.2020
Long-term interest bearing debt	303,4	302,3
Short-term interest bearing debt Cash and cash equivalents	45,1 -238,8	75,9 -1 394,1
Restricted cash	20,5	93,7
Net interest bearing debt (NIBD)	130,2	-922,3

• Underlying business growth increases accounts receivables and payables but overall decrease in net working capital
• In general, no major changes to equity and liabilities beyond the new equity issued in June 2020
• Liquidity is seasonal with Q4 being a strong quarter – Q4 2020 still represents a clear improvement year over year

• The strong balance sheet supports the current M&A strategy

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

• Approx. NOK 556m of goodwill as of year-end 2020 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

Cash flow development

NOKm	Q4 2019	Q4 2020	YTD Q4 2019	YTD Q4 2020
Net income before tax	-31,8	126,0	9,6	193,7
Taxes paid	-16,3	-13,8	-30,5	-34,5
Depreciation and amortisation, incl. impairment	89,6	37,2	172,9	140,3
Net interest to credit institutions	12,9	8,2	48,1	32,7
Changes in inventory, AR/AP¹	207,2	447,3	-109,0	364,1
Changes in other current assets	133,1	370,6	99,9	245,4
Net cash flow from operating activities	394,6	975,4	191,0	941,6
Net interest paid to credit institutions	-27,0	-6,3	-55,6	-43,9
New Equity / Other	35,1	62,7	3,4	368,3
Net new debt	-170,4	-13,6	-191,6	-12,7
Net cash flow from financing activities	-162,4	42,8	-243,7	311,7
Acquisition of assets	-30,1	-28,7	-76,3	-81,4
Acquisition of subsidiaries - net of cash acquired/ Business combinations	-0,9	0,0	-8,9	-12,6
Net cash flow from investing activities	-31,0	-28,7	-85,2	-94,0

• Cash flow from operations in Q4 driven by change in net working capital performance and strong underlying business performance
• Acquisition of assets in Q4 2020 of NOK 28.7mn mainly related to investments in new ERP system and Cloud IQ platform and 6.5mn acquisition of Winc.

Outlook

2020 outlook updated to reflect growth opportunity

	2019 actuals	2020 outlook	2020 actuals	2021 outlook	Medium term	Comment
Gross profit growth	+21.7 %	+25-30%	+29.6%	+20-25%	+15-20 %	Continued strong momentum, includes Sensa closing during Q2
Adjusted EBITDA as share of gross profit	16.2%	16-17%	17.6%	16-17%	Gradually increase to 19%	Continue to invest in growth for 2021, given strong market momentum
NWC1	-15.8 %	-20% to -25%	-30.2%	-20% to -25%	-15% to - 20%	Expect to sustain ~half of the 2020 NWC improvement medium term
Capex	NOK 76m	NOK 80-85 m	NOK 74.9m	NOK 80-85 m	NOK~85m	Continued investments in platforms and IP

Q&A Session

Investor Relations

Main communications channels

• Crayon IR webpages https://www.crayon.com/investor-relations/
• Group fact & figures
• − Reports & Presentations
• − Share and bond information
• Newsweb , Oslo Stock Exchange

Financial calendar 2020:

• 25.03.21 Annual Report
• 16.04.21 Annual General Meeting
• 11.05.21 Quarterly Report Q1
• 11.08.21 Half-yearly Report
• 26.10.21 Quarterly Report Q3
• 15.02.22 Quarterly Report Q4

For IR-related requests: Hilde Thomassen (+47 90 25 41 32) ir@crayon.com / hilde.thomassen@crayon.com

CRAYON GROUP

Data pack available at crayon.com

Appendix

Strong Q4 leads to 30% gross profit growth LTM

LTM gross profit by market cluster NOK million

YoY gross profit growth by business area NOK million

LTM Adjusted EBITDA of NOK 413 million

LTM adjusted EBITDA by market cluster NOK million

LTM adjusted EBITDA by business area NOK million

1 adjusted EBITDA as share of Gross Profit 2 LTM vs previous LTM period

Q4 2020 APPENDIX

Services

SW & Cloud Economics

Consulting

• 1 Adj. EBITDA divided by reported gross profit

Q4 2020 APPENDIX

Software

SW & Cloud Direct SW & Cloud Channel

• 1 EBITDA divided by reported gross profit