ECIT AS — Interim / Quarterly Report 2022

May 13, 2022

ECIT | Interim Report | Q1 2022

Investor presentation 13th May 2022

1 ECIT in short

2 Highlights

4

5

3 M&A – Acquisitions in Q1

Business segments

Peter Lauring CEO

Mads Skovgaard CFO

ECIT in short

Founded in 2013
+125 acquisitions
~250 partners
People business (+ 2200)
Present in 10 countries
Strategic partner

Highlights

Financial summary

Highlights

Financial performance – Q1 2022

EBITDA* (NOKm) and margins

Adjusted free cash flow** (NOKm)

Adjusted diluted earnings per share*** (NOK)

Notes

*) EBITDA before special items. **) Free cash flow less IFRS leasing and before special items, R&D and acquisitions ***) Adjusted for one-off items

M&A – Acquisitions in Q1 2022

F&A division

Financial summery – Q1 2022
(NOKm)	Q1 2022	Q1 2021
Revenue	390	300
EBITDA*	61	51
Total revenue growth	30.0%	20.0%
EBITDA-margin*	15.7%	17.0%

EBITDA* and margin development

• Mainly M&A growth.

• Covid-19 sick leave effects.
• Merger and integration effects.
• Large Q2 2021 acquisition affects EBITDA margin.
• Improved EBITDA margin excluding acquisitions

IT division

Financial overview – Q1 2022
(NOKm)	Q1 2022	Q1 2021
Revenue	316	266
EBITDA*	33	21
Total revenue growth	19.0%	34.3%
EBITDA-margin*	10.5%	7.9%

EBITDA* and margin development

• Good EBITDA margin improvement – focus optimization.
• High demand for our IT services and solutions.
• Driving growth.
• Global IT supply challenges.
• Mergers and integration effects.

Tech division

Financial summery – Q1 2022
(NOKm)	Q1 2022	Q1 2021
Revenue	32	22
EBITDA*	-2	-2
Total revenue growth	42.5%	46.7%
EBITDA-margin*	-7.1%	-10.7%

• High demand for our software and tech solutions.
• Good revenue growth +40%.
• ARR growth at ~34%.

• customers ~35% increase

Number of customers Revenue development

Financial review

Financial review

Profit & loss summarized Management comments

	Q1	Q1
(NOKm)	2022	2021	Growth
Revenue	710	554	28.1%
EBITDA*	87	66	31.8%
Profit for the quarter	32	22	45.6%
Adj. profit for the quarter	25	22	18.3%
P&L items
Special items	-4	0	n/a
Financial income	14	1	1300%
Financial expenses	-11	-4	175%
KPIs
Total revenue growth	28.1%	24.8%
M&A revenue growth	22.8%	20.1%
Organic revenue growth	6.5%	5.5%
Currency impact	-1.2%	-0.7%
EBITDA-margin*	12.3%	11.9%
Diluted adj. EPS	0.03	0.03

• Exceeding revenue targets of 15% (total incl. M&A) and 5.5% (organic).
• Currency impact on revenue of minus 1.2% (minus 0.7%).
• Increased interest expenses (debt financing).
• Financial profit sale of Cloud Connection.
• Adjusted profit excluding one offs for the quarter ended at NOK 25m (22m).

Cash Flow & Net Working Capital

Cash Flow Statement			Adjusted free cash flow* (NOK million)			Management comments
(NOKm)	Q1 2022	Q1 2021		44m	59m C ov +1 id -1 9
EBITDA Change in NWC	87 27	66 8		C ov +20 id -1 9	58	change in NWC.
Cash flow from operations Cash flow from investing Cash flow from financing	80 -105 56	49 -41 -33	29 Q1 2020 Q1 2021	24	Q1 2022	to the NWC in 2022.
Cash flow for the period	31	-25	Change in Net Working Capital (NWC)
Adjusted free cash flow:			(NOKm)	Q1 2022	Q1 2021
Cash flow from operations Special items Investments in tangible assets	80 4 -4	49 0 -6	Accounts receivables Accounts payable		2 25 2 -15
Repayment of lease liabilities	-22	-19	Delayed payments, Covid-19 Other change in NWC	-1 24	-20 18
Adjusted free cash flow	58	24	Total change in NWC	27	8
			Delayed payments, Covid-19		1 20
			Adjusted change in NWC	28	28

(NOKm) Accounts receivables 2 25 Accounts payable 2 -15 Delayed payments, Covid-19 -1 -20 Other change in NWC 24 18 Total change in NWC 27 8 Delayed payments, Covid-19 1 20 Adjusted change in NWC 28 28 Q1 2022 Q1 2021

• Improved adjusted free cash flow – NOK 58 million in Q1 2022 (24)
• Covid-19 impact to the 2021 change in NWC.
• Prolonged duties have been paid throughout 2021 – limited impact to the NWC in 2022.
• Positive change in NWC holiday provision build up during the quarter (similar to last year).
• Cash flow from financing activities (acquisition of Xacct Accounting)

Net debt and leverage ratio

Net interest bearing debt (NOKm)			Leverage ratio			Management comments
(NOKm)	Q1 2022	Q1 2021			0,5x	months.
			0,3x	0,3x
Borrowings	320	167				0.5x (0.3x).
Lease liabilities	217	184
Total interest bearing liabilities	537	351	Q1 2020	Q1 2021	Q1 2022
Interest bearing receivables	61	57				revolving facility.
Cash and cash equivalents	292	215
Total interest bearing assets	352	272	Revolving facility (NOKm)
Net debt / Net cash (-)	184	79			750
EBITDA*, LTM	360	276
Debt leverage	0.5x	0.3x	400	475	463
			363	372	287

Revolving facility (NOKm)

• Net debt increase due to acquisitions during the last twelve months.
• Leverage ratio remains low at 0.5x (0.3x).
• +450m million available from the revolving facility.

Overall evaluation