ECIT AS

Investor Presentation • Aug 24, 2023

Division performance

Acquisitions

Financial review

5 Overall

2

3

1

4

Peter Lauring CEO

Mads Skovgaard CFO

2023 Highlights

• 25% revenue growth

• Improved margin

3

	Q2	Q2		H1	H1
(NOKm)	2023	2022	Growth	2023	2022	Growth
Revenue	877	704	24.5%	1,739	1,390	25.2%
EBITDA	122	97	26.1%	237	184	29.0%
EBIT	60	44	36.5%	123	82	50.6%
Profit for the period	41	33	25.5%	90	64	41.9%
Free cash flow	54	38	41.6%	176	96	82.6%
Adjusted diluted EPS	0.06	0.06	-2.5%	0.12	0.09	35.7%
KPIs
Total revenue growth	24.5%	16.1%	8.4 p.p.	25.2%	21.1%	4.1 p.p.
Organic revenue growth	6.0%	7.4%	-1.4 p.p.	8.4%	6.1%	2.3 p.p.
M&A revenue growth	14.3%	9.5%	4.8 p.p.	13.2%	16.4%	-3.2 p.p.
EBITDA-margin	13.9%	13.7%	0.2 p.p.	13.6%	13.2%	0.4 p.p.
EBIT-margin	6.8%	6.2%	0.7 p.p.	7.1%	5.9%	1.2 p.p.

Divisions

F&A division

Financial overview – H1 2023
(NOKm)	H1 2023	H1 2022
Revenue	1,033	793
EBITDA	179	132
Total revenue growth	30.3%	18.5%
EBITDA-margin	17.4%	16.6%

• M&A + Organic growth.

• Margin improvement – underlying business – consolidation effects.

• 5 companies ~ 50% of revenue

5

Financial overview – Q2 2023

Notes:

(NOKm)	Q2 2023	Q2 2022
Revenue	523	403
EBITDA	93	71
Total revenue growth	29.8%	9.2%
EBITDA-margin	17.8%	17.6%

EBITDA = EBITDA before transactions- and restructuring costs

EBITDA and margin development

IT division

Financial overview – H1 2023
(NOKm)	H1 2023	H1 2022
Revenue	705	593
EBITDA	78	62
Total revenue growth	18.7%	15.1%
EBITDA-margin	11.1%	10.4%

• Consultants for hire – Norwegian regulation change – organic growth impact.

• Margin consolidation effects.
• 5 companies ~ 75% of revenue

Financial overview – Q2 2023

(NOKm)	Q2 2023	Q2 2022
Revenue	350	295
EBITDA	37	30
Total revenue growth	18.8%	14.9%
EBITDA-margin	10.5%	10.1%

EBITDA and margin development

Tech division

Financial summery – H1 2023
(NOKm)	H1 2023	H1 2022
Revenue	73	59
EBITDA	0	0
Total revenue growth	22.9%	108.0%
EBITDA-margin	-0.2%	0.6%

Annual recurring revenue (own software) Comments

• Change: H1 2023 NOK 15 million revenue been moved to the IT division.

• ECIT Software revenue + directly related consulting revenue.
• ARR change ECIT Software revenue only.

Financial summery – Q2 2023

(NOKm)	Q2 2023	Q2 2022
Revenue	38	31
EBITDA	-1	2
Total revenue growth	22.3%	123.1%
EBITDA-margin	-4.0%	5.9%

Revenue development

Acquisitions in 2023

M&A – Acquisitions in 2023

Valuation

ECIT valuation

ECIT strategy

• Building a group not a group of companies
• Options the bridge between acquisition and consolidation
• To be exercised gradually no later than 2030
• EV/EBITDA multiple +4x

Adjusted EPS – Last twelve months

ECIT view

(NOKm)	30 June 2023	24 March 2022	Growth
Share price	8.38	6.42	30.5%
Number of shares	453	446	1.5%
Equity Value	3,795	2,860	32.7%
+/- Net interest bearing debt	470	137	243.1%
- Option obligation	582	458	27.1%
Enterprise value	4,847	3,455	40.3%
EBITDA LTM	501	339	47.8%
EV/EBITDA multiple	9.7	10.2	-5.1%

Financial review

Financial review

Profit & loss summarized Comments

(NOKm)	Q2 2023	Q2 2022	Growth	H1 2023	H1 2022	Growth
Revenue EBITDA EBIT Profit for the year Adj. profit for the year	877 122 60 41 45	704 97 44 33 38	24.5% 26.1% 36.5% 25.5% 18.1%	1,739 237 123 90 95	1,390 184 82 64 64	25.2% 29.0% 50.6% 41.9% 49.1%
P&L items: Retructuring & transaction costs Financial income Financial expenses	-4 6 -12	-5 6 -7	-24.6% 9.3% 73.3%	-5 14 -22	-9 16 -17	-46.2% -13.2% 28.9%
KPIs Total revenue growth Organic revenue growth M&A revenue growth Currency impact	24.5% 6.0% 14.3% 4.1%	16.1% 7.4% 9.5% -0.9%	8.4 p.p. -1.4 p.p. 4.8 p.p. 5 p.p.	25.2% 8.4% 13.2% 3.6%	21.1% 6.1% 16.4% -1.4%	4.1 p.p. 2.3 p.p. -3.2 p.p. 5 p.p.
EBITDA-margin EBIT-margin Adj. diluted EPS	13.9% 6.8% 0.06	13.7% 6.2% 0.06	0.2 p.p. 0.7 p.p. -2.5%	13.6% 7.1% 0.12	13.2% 5.9% 0.09	0.4 p.p. 1.2 p.p. 35.7%

• Total revenue growth exceeding the financial target.

• Currency tailwind of ~4%.

• Positive effects from the ongoing consolidation and integration,

Cash Flow & financial position

(NOKm)	H1 2023	H1 2022
EBITDA	237	184
Transaction and restructuring costs	-5	-9
Corporation tax, paid	-37	-38
Change in NWC	39	3
Cash flow from operations	235	140
Cash flow from investing	-152	-135
Cash flow from financing	-85	-38
Cash flow for the period	-2	-33
Free cash flow	176	96

Cash Flow Statement Free cash flow (NOK million) Comments

Financial position (NOK million)

(NOKm)	H1 2023	H1 2022
NIBD ex. leasing debt	210	16
Leverage ratio	0.9x	0.6x
NIBD	470	215
Undrawn revolving facility	345	463

• Solid cash flow from operations increased EBITDA and positive change in net working capital.
• Positive development in free cash flow as a consequence of strong cash flow from operations.
• NIBD at NOK 470 million (215) incl. IFRS16.
• Leverage ratio increased compared to last year.
• NOK ~345 million in financial headroom.

Share buyback & Dividend

Management comments

• A new share buyback program has been announced starting 24 August 2023 amounting to NOK 12.5 million. The program is planned to end the 7 November 2023.
• As of 30 June 2023, ECIT AS holds 573 thousand treasury shares.

Announced allocations to shareholders (NOKm)	Total 2022 announced	Q1 2023	Q2 2023	Q3 2023	Total 2023 announced
Dividend (NOK 0.04 per share)	17.9	0.0	18.1	0.0	18.1
Share buyback 1 - NOK 8 million	8.0	0.0	0.0	0.0	0.0
Share buyback 2 - NOK 4 million	4.0	0.0	0.0	0.0	0.0
Share buyback 3 - NOK 3 million	0.0	3.0	0.0	0.0	3.0
Share buyback 4 - NOK 12.5 million	0.0	0.0	12.5	0.0	12.5
Share buyback 5 - NOK 12.5 million	0.0	0.0	0.0	12.5	12.5
Total announced allocations	29.9	3.0	30.6	12.5	46.1

Key financial target change (mid-to-long term)

Overall evaluation