ECIT AS

Earnings Release • Nov 9, 2023

2023 highlights

• Division performance
• Acquisitions

5 Overall

2

3

1

4

Peter Lauring CEO

Mads Skovgaard CFO

Ownership strategy

2024 going towards 85% ownership in the relevant subsidiaries

Comments

• Expected ~85% ownership share in subsidiaries – by the end 2024
• Increase Group share of Cash Flow
• Acquisitions after June 2022 not affected for now

2023 Highlights

• Macroeconomic – political conditions affect IT revenue, whereas F&A is doing well
• Opposite of the situation during Corona
• Resilient business model
• YTD – 23% growth / 6.7% organic
• IT growth – next 3 – 6 months
• Steady (improved) EBITDA margin

4

• FCF growth

Q3 2023	Q3 2022	Growth	YTD 2023	YTD 2022	Growth
					23.1%
					18.8% 24.3%
					23.5%
					28.2%
					25.9%
		-12.2%			-38.9%
116	96	19.9%	348	271	28.6%
-8	-6	29.6%	-21	-16	32.7%
		17.5%			20.4%
		19.8%			30.8%
					24.3%
57	53	8.2%	181	135	33.6%
		-24.9%			12.7%
					43.3%
0.04	0.04	15.5%	0.16	0.13	26.1%
18.6% 1.6% 14.4% 15.4%	19.5% 10.0% 11.2% 15.3%	-0.9 p.p. -8.3 p.p. 3.2 p.p. 0.1 p.p. -0.7 p.p.	23.1% 6.7% 13.2% 14.2%	20.5% 7.6% 14.4% 13.9%	2.6 p.p. -0.9 p.p. -1.2 p.p. 0.3 p.p. 0.6 p.p.
	766 -136 630 -459 -54 118 -2 -26 82 -25 34 73 7.4%	645 -126 519 -376 -45 99 -2 -22 69 -16 45 78 8.1%	18.6% 8.6% 21.3% 22.1% 18.2% 18.5% 57.5% -6.4%	2,506 -457 2,049 -1,510 -184 355 -7 -74 253 -72 124 249 7.2%	2,034 -385 1,648 -1,222 -144 282 -11 -61 193 -58 110 174 6.6%

Divisions

F&A division

Financial overview – YTD 2023
(NOKm)	YTD 2023	YTD 2022
Revenue	1,468	1,133
EBITDA	253	184
Total revenue growth	29.6%	16.3%
EBITDA-margin	17.2%	16.2%

• Good organic growth.

• Margin improvement underlying business – consolidation process.
• 5 companies ~ 50% of revenue

Financial overview – Q3 2023

Notes:

(NOKm)	Q3 2023	Q3 2022
Revenue	436	340
EBITDA	72	53
Total revenue growth	28.0%	9.5%
EBITDA-margin	16.5%	15.5%

EBITDA = EBITDA before transactions- and restructuring costs

EBITDA and margin development

6

IT division

Financial overview – YTD 2023
(NOKm)	YTD 2023	YTD 2022
Revenue	1,028	903
EBITDA	128	107
Total revenue growth	13.7%	19.8%
EBITDA-margin	12.4%	11.8%

751 903 YTD 2021 YTD 2022 YTD 2023 27.7% 19.8% 13.7% 1,028

Revenue development Comments

• Macroeconomic and political conditions affect organic growth.

• IT projects, including specialized equipment – high growth in the comparable period 2022
• Margin improving consolidation effects.
• 5 companies ~ 75% of revenue

Financial overview – Q3 2023

(NOKm)	Q3 2023	Q3 2022
Revenue	323	309
EBITDA	49	46
Total revenue growth	4.1%	31.4%
EBITDA-margin	15.2%	14.9%

Tech division

Financial overview – YTD 2023
(NOKm)	YTD 2023	YTD 2022
Revenue	112	90
EBITDA	5	5
Total revenue growth	24.7%	88.7%
EBITDA-margin	4.3%	5.3%

Annual recurring revenue (own software) Comments

• ECIT Software revenue and directly related consulting revenue.
• ARR development ECIT Software revenue only.

Financial overview – Q3 2023

(NOKm)	Q3 2023	Q3 2022
Revenue	40	29
EBITDA	5	4
Total revenue growth	38.8%	43.0%
EBITDA-margin	11.7%	14.0%

Acquisitions in 2023

M&A – Acquisitions in 2023

Financial review

Financial review

Profit & loss summarized Comments

(NOKm)	Q3 2023	Q3 2022	Growth	YTD 2023	YTD 2022	Growth
Revenue EBITDA EBIT Profit for the period Adj. profit for the period	766 118 57 34 36	645 99 53 45 33	18.6% 18.5% 8.2% -24.9% 8.3%	2,506 355 181 124 131	2,034 282 135 110 96	23.1% 25.9% 33.6% 12.7% 35.4%
P&L items: Retructuring & transaction costs Financial income Financial expenses	-2 4 -16	-2 20 -13	-12.2% -80.5% 22.0%	-7 18 -38	-11 36 -30	-38.9% -49.9% 25.9%
KPIs Total revenue growth Organic revenue growth M&A revenue growth Currency impact	18.6% 1.6% 14.4% 2.6%	19.5% 10.0% 11.2% -1.6%	-0.9 p.p. -8.3 p.p. 3.2 p.p. 4.2 p.p.	23.1% 6.7% 13.2% 3.2%	20.5% 7.6% 14.4% -1.5%	2.6 p.p. -0.9 p.p. -1.2 p.p. 4.7 p.p.
EBITDA-margin EBIT-margin Adj. diluted EPS	15.4% 7.4% 0.04	15.3% 8.1% 0.04	0.1 p.p. -0.7 p.p. 15.5%	14.2% 7.2% 0.16	13.9% 6.6% 0.13	0.3 p.p. 0.6 p.p. 26.1%

• Total revenue – almost 20% for the quarter and almost 25% year-to-date.

• Macroeconomic headwind.
• Gradually EBITDA margin improvements.
• Extraordinary gains from a divestment explain last year's high profit for the quarter.

Cash Flow & financial position

(NOKm)	YTD 2023	YTD 2022
EBITDA	355	282
Transaction and restructuring costs	-7	-11
Corporation tax, paid	-49	-41
Change in NWC	39	14
Cash flow from operations	338	241
Cash flow from investing	-199	-224
Cash flow from financing	-109	-79
Cash flow for the period	30	-61
Cash flow from operations	338	241
Restructuring & transaction costs	7	11
Net investments in tangible assets	-17	-13
Repayment of lease liabilities	-79	-66
Free cash flow	249	174

Cash Flow Statement Free cash flow (NOK million) Comments

Financial position (NOK million)

(NOKm)	YTD 2023	YTD 2022
NIBD ex. leasing debt	196	38
Leverage ratio	0.9x	0.6x
NIBD	450	231
Undrawn revolving facility	315	463

• Solid cash flow from operations increased EBITDA and positive change in net working capital.
• NIBD at NOK 450 million (231) incl. IFRS16.
• Leverage ratio at 0.9x.
• NOK ~315 million in financial headroom.

Share buyback & Dividend

Management comments

• A new share buyback program has been announced starting on 9 November 2023 amounting to NOK 7.5 million. The program is planned to end on 26 February 2024.
• As of 30 September 2023, ECIT AS holds 1.65 million treasury shares.

Announced allocations to shareholders (NOKm)	Total 2022 announced	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Total 2023 announced
Dividend (NOK 0.04 per share)	17.9	0.0	18.1	0.0	0.0	18.1
Share buyback 1 - NOK 8 million	8.0	0.0	0.0	0.0	0.0	0.0
Share buyback 2 - NOK 4 million	4.0	0.0	0.0	0.0	0.0	0.0
Share buyback 3 - NOK 3 million	0.0	3.0	0.0	0.0	0.0	3.0
Share buyback 4 - NOK 12.5 million	0.0	0.0	12.5	0.0	0.0	12.5
Share buyback 5 - NOK 12.5 million	0.0	0.0	0.0	9.3	0.0	9.3
Share buyback 6 - NOK 7.5 million	0.0	0.0	0.0	0.0	7.5	7.5
Total announced allocations	29.9	3.0	30.6	9.3	7.5	50.4

Overall evaluation