ECIT AS — Investor Presentation 2024

Sep 23, 2024

Highlights

• 13.8% revenue growth / 3.4% organic
• Macroeconomic – affects part of the IT Division – acceptable growth in the F&A and Tech Division.
• H1 2024 - one working day less compared to last year.
• EBITDA 256m (237m) – lower IT spending and 1 less working day
• Cost savings program – progress according to plan

H1 2024 results

Revenue: 1.979m (13.8%)

Organic growth: 3.4%

EBITDA: 256m (12.9%)

EBIT: 132m (6.7%)

EPS: 0.11 NOK (0.12)

Free cash flow: 125m (165)

10 largest companies: ~60% (% Total Group)

shares: 465m

Divisions

F&A division

Financial overview – H1 2024
(NOKm)	H1 2024	H1 2023
Revenue EBITDA	1 144 , 190	1 033 , 175
Total growth revenue EBITDA-margin	10 9% 16 6%	30 3% 17 0%

• Acceptable organic growth.

• EBITDA H1 holds one working day less than last year.
• Consolidation on-going.

Financial overview – Q2 2024

		EBITDA and margin development
--	--	-------------------------------

(NOKm)	Q2 2024	Q2 2023
Revenue EBITDA	571 100	523 91
Total growth revenue EBITDA-margin	9 3% 17 5%	29 8% 17 3%

• Nearshoring – focus area.

IT division

Financial overview – H1 2024
(NOKm)	H1 2024	H1 2023
Revenue EBITDA	783 76	688 78
Total growth revenue EBITDA-margin	13 9% 9 8%	18 2% 11 5%

• Regaining margin somewhat in Q2 compared to Q1.

• Macroeconomic – market conditions still a challenge – affecting HW/project revenue.

Financial overview – Q2 2024

(NOKm)	Q2 2024	Q2 2023
Revenue EBITDA	379 46	339 37
Total growth revenue EBITDA-margin	11 8% 12 2%	15 5% 10 8%

EBITDA and margin development

Tech division

Financial overview – H1 2024

(NOKm)	H1 2024	H1 2023
Revenue	109	73
Sale of service	31	12
SaaS services	78	61
EBITDA	0	0
Total growth revenue EBITDA-margin	50 3% -0 1%	22 9% -0 2%

Annual recurring revenue (core software) Comments

• Good growth.

• Core software revenue – growth driven by the payroll system Intect and the invoice workflow ECIT Digital.

Financial overview – Q2 2024

(NOKm)	Q2 2024	Q2 2023
Revenue Sale of service SaaS services EBITDA	55 15 40 1	38 6 32 -2
Total growth revenue EBITDA-margin	45 2% 1 5%	22 3% -4 0%

Acquisitions in 2024

M&A – Acquisitions in 2024

Notes:

All figures presented are according to the latest published annual report, adjusted for the parts of the business not acquired EBITDA, including IFRS16 lease accounting impact *Excluding acquired company; Zirius AS - associated company not subject to consolidation

Financial review

Financial review

Profit & loss summarized Comments

	Q2	Q2		H1	H1
(NOKm)	2024	2023	Growth	2024	2023	Growth
Revenue	980	877	11 7%	1 979	1 739	13 8%
EBITDA	144	122	18.3%	, 256	, 237	8.0%
EBITA	111	88	26.1%	189	175	7.8%
EBIT	83	64	29.5%	132	128	3.3%
Profit for the period	42	41	1 6%	70	90	-22 4%
Adj . profit for the period	54	45	19.1%	86	95	-9.5%
P&L items:
Restructuring & transaction costs	-9	-4	117 1%	-14	-5	173 2%
Financial income	6	6	-4 3%	12	14	-16 2%
Financial expenses	-25	-12	105 3%	-39	-22	77 6%
KPIs
Total growth revenue	11 7%	24 5%	-12 8 p.p.	13 8%	25 2%	-11 4 p.p.
Organic growth revenue	3 1%	6 0%	-2 9 p.p.	3 4%	8 4%	-5 p.p.
M&A growth revenue	9 4%	14 3%	-4 9 p.p.	10 0%	13 2%	-3 2 p.p.
Currency impact	-0 7%	4 1%	-4 8 p.p.	0 4%	3 6%	-3 2 p.p.
EBITDA-margin	14 7%	13 9%	0 8 p.p.	12 9%	13 6%	-0 7 p.p.
EBIT-margin	8 5%	7 3%	1 2 p.p.	6 7%	7 1%	-0 4 p.p.
EPS Adj diluted	0 07	0 06	13 6%	0 11	0 12	-6 5%

• Total revenue 13.8% (25.2%) organic revenue growth of 3.4% (8.4%)
• H1 2024: one working day less than the same period last year.
• Cost-saving program progressing as planned (higher one-off expenses).
• Increased financial expenses increased debt and higher interest rates (comparable period).

^• Average ownership share of 75% (68.9%)

Cash Flow & financial position

	H1	H1
(NOKm)	2024	2023
EBITDA Restructuring & transaction costs Corporation , paid tax Change NWC in Cash flow from operations	256 -14 -50 4 197	237 -5 -37 29 224
Cash flow from investing Cash flow from financing Cash flow for the period	-133 -112 -48	-152 -85 -13
Cash flow from operations Restructuring & transaction costs Net investments in tangible assets of Repayment lease liabilities Free cash flow	197 14 -28 -57 125	224 5 -11 -53 165

Cash Flow Statement Free cash flow (NOK million) Comments

Financial position (NOK million)

(NOKm)	H1 2024	H1 2023
NIBD leasing debt ex.	543	221
Leverage ratio	1 58x	0 96x
NIBD	827	481
Undrawn revolving facility	261	345

• Free cash flow development net working capital fluctuations (customer invoicing and collection).
• The negative effect on net working capital in the second quarter is expected to be offset in the third quarter.
• NIBD ex. Leasing debt of NOK 543 million (221).
• Increase in debt completed acquisitions in the last 12 months and strategic decision to increase ownership share in subsidiaries.

Overall evaluation