ECIT AS — Investor Presentation 2023

May 10, 2023

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ECIT & Key Financials Q1 2023

• Division performance
• Acquisitions
• Financial review

5 Overall

Peter Lauring CEO

Mads Skovgaard CFO

ECIT Drivers

• Integrating IT, Accounting & Software
• People business – managed by entrepreneurs
• Buy & build
• Tech driven Services provider

10 years performance

Financial targets

Highlights

• Good organic growth – volume and price increase.
• EBITDA, EBIT and EPS improved.
• Overall coming from Improved earnings.
• Consolidation => margin improvement.

Q1 2023

Revenue: 862m (25,9%)

Organic growth: 10.8%

EBITDA: 115m (13.4%)

EBIT: 64m (7.4%)

RR / Repeat : 77%

EPS: 0.07 NOK

10 companies represent: ~55% (revenue – earnings)

Mcap: 3.3bn

shares: 452m

Divisions

F&A division

Financial overview – Q1 2023
(NOKm)	Q1 2023	Q1 2022
Revenue	509	390
EBITDA	86	61
Total revenue growth	30.8%	30.0%
EBITDA-margin	16.9%	15.7%

EBITDA and margin development

• Δ Organic growth – volume & price.

• Margin improvement – underlying business and Norian.

• M&A growth.

IT division

Financial overview – Q1 2023
(NOKm)	Q1 2023	Q1 2022
Revenue	349	299
EBITDA	44	33
Total revenue growth	16.5%	17.6%
EBITDA-margin	12.5%	11.0%

EBITDA and margin development

• Organic growth – volume & price.

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

Tech division

Financial summery – Q1 2023
(NOKm)	Q1 2023	Q1 2022
Revenue	41	25
EBITDA	-1	-2
Total revenue growth	57.0%	24.2%
EBITDA-margin	-1.6%	-7.9%

Revenue development

• Organic growth – consulting & ARR.

• ARR improving as several systems are gaining customer traction.
• Investment both software and sales.

Acquisitions in 2023

M&A – Acquisitions in 2023

Financial review

Financial review

Profit & loss summarized Comments

	Q1	Q1
(NOKm)	2023	2022	Growth
Revenue	862	685	25.9%
EBITDA	115	87	31.9%
EBIT	64	38	65.6%
Profit for the year	49	32	53.8%
Adj. profit for the year	50	25	100.0%
P&L items:
Retructuring & transaction costs	-1	-4	-77.2%
Financial income	10	13	-26.4%
Financial expenses	-10	-10	-7.9%
KPIs
Total revenue growth	25.9%	26.6%
Organic revenue growth	10.8%	4.4%
M&A revenue growth	12.1%	23.6%
Currency impact	2.9%	-1.5%
EBITDA-margin	13.4%	12.8%
EBIT-margin	7.4%	5.5%
Adj. diluted EPS	0.07	0.03	100.8%

• The positive development in 2022 continued into the first quarter of 2023.
• Total revenue growth exceeding the financial target.
• Currency tailwind of ~3%.
• Impact of inflation in 2023 increased cost base mitigated by price increase.
• Effects from the consolidation in 2022 are gradually diminishing.

Cash Flow & financial position

(NOKm)	Q1 2023	Q1 2022
EBITDA	115	87
Transaction and restructuring costs	-1	-4
Corporation tax, paid	-22	-31
Change in NWC	59	27
Cash flow from operations	151	80
Cash flow from investing	-36	-105
Cash flow from financing	-70	56
Cash flow for the period	45	31
Free cash flow	122	58

Cash Flow Statement Free cash flow (NOK million) Comments

Financial position (NOK million)

(NOKm)	Q1 2023	Q1 2022
Net-interest-bearing-debt (NIBD)	247	184
Leverage ratio	0.5x	0.5x
NIBD ex. leasing debt	29	-33
Undrawn revolving facility	448	463

• Strong cash flow from operations increase in EBITDA and positive change in net working capital.
• Net working capital improvement explained by a normalisation from Q4 2022.
• Cash flow from investing/financing activities – timing in acquisitions.
• NIBD at NOK 247 million (184) incl. IFRS16.
• Leverage ratio at the same level as last year hence improved EBITDA.
• NOK ~450 million in financial headroom.

Share buyback & Dividend

Management comments

• A new share buyback program has been announced starting 10 May 2023 amounting to NOK 12.5 million. The program is planned to end the 23 August 2023.
• As of 31 March 2023, ECIT AS holds 2,772 thousand treasury shares.
• Dividends to ECIT AS shareholders of NOK 18.1 million were paid out during April 2023.

	Total 2022	Q1	Q2	Total 2023
Announced allocations to shareholders (NOKm)	announced	2023	2023	announced
Dividend (NOK 0.04 per share)	17.9	0.0	18.1	18.1
Share buyback 1 - NOK 8 million	8.0	0.0	0.0	0.0
Share buyback 2 - NOK 4 million	4.0	0.0	0.0	0.0
Share buyback 3 - NOK 3 million	0.0	3.0	0.0	3.0
Share buyback 4 - NOK 12 million	0.0	0.0	12.5	12.5
Total announced allocations	29.9	3.0	30.6	33.6

Overall evaluation