Inin Group AS — Investor Presentation 2021

Mar 8, 2021

COMPANY PRESENTATION Q4/2H 2020

Øivind Horpestad, CEO Elop March 8, 2020

Q4 Highlights and subsequent events

• Announced acquisition of Simplifai
• Product launch December 8th
• Strong growth in Simplifai MRR
• Established presence in East Asia
• Building extensive customer pipeline
• Bank sector breakthrough for Simplifai's digital employee technology

Q4 highlights Subsequent events

• Completed acquisition of Simplifai
  • Identified NOK 30 million in synergies to be realised in 2021
• Delivering on the Simplifai expansion strategy:
  • Asia breakthrough contracts in India and Singapore
  • Strategic distribution partnership in Middle East
  • Breakthroughs in Norwegian public sector and online retail segment
• Executive leadership team in place driving and delivering synergies and growth. Appointment of Group CEO, CPO and CTO
• Developing industry partnerships and collaborations for wider technology application areas
• 48% increase in requests year to date

Elop group in brief

Solutions to inspect, monitor and manage infrastructure

Unique technology for inspection and analysis of critical infrastructure

Provide asset owners with solutions that improve safety, extend asset lifetime, minimise total lifecycle cost and environmental footprint.

Data-driven and AI-based solutions for inspection and predictive maintenance of critical infrastructure

Joint global expansion plan

Shared resources

ELOP AI business unit

Develops automation solutions using artificial intelligence to help clients across numerous industry sectors to grow efficiently

Digital Employee solutions that automate labour intensive work processes

About Elop

• Strong technical team in Norway, Ukraine, and India
• Regional commercial presence in Europe, Middle East and South Asia

Concrete is the worlds most used construction material

…and it is a major contributor to current environmental challenges as 8% of the world's CO2 emissions come from the concrete production

Maintenance of critical concrete infrastructure is a growing global concern

Concrete is the most used construction material worldwide with aging structures and prolonged neglect driving up the maintenance cost...

… and an increasing number of incidents is putting safety on the agenda, highlighting the need for better tools to monitor structural integrity

Keeping concrete structures safe, sustainable and financially viable 7

Consequences of being unable to monitor infrastructure cost-effectively

For society, infrastructure owners and users

Short infrastructure lifetime

Costs of building new infrastructure Accidents that could have been prevented

High CO2 emissions from production and construction

Elop Insight

Elop Insight is the world's first rolling, ultrasonic scanning solution for concrete inspection.

The unique, patented technology enables smart and unparalleled efficiency of scanning for a large variety of concrete structures, such as bridges, dams, tunnels and buildings.

Elop Insight

The live 3D visualisation of the concrete structure on the scanner screen, shows elements and defects such as cracks, air pockets, voids, delamination and rebars in real-time.

Elop Insight

Major benefits to key stakeholders

Key stepping stones for Elop to succeed

Introducing new technology to create a new high growth market

Credibility

• Demonstrating tech
• Bringing AI competence inhouse
• Field demonstrations
• х Developing industry partnerships
• х Major reference clients
• х Demonstrating different applications areas

Success stories

• х Successful field projects х Global distribution
• х New technology applications
• х New geographical markets
• х New industries
• х Demonstrating stakeholder value

Recognition

• х Exponential sales growth
• х International expansion

Awareness

• Euronext listing
• Commercial launch
• Building sales pipeline
• Solutions marketing
• First technology demonstrations
• Initiating commercial partnerships
• х Proactive international marketing
• х Industry events

Elop Trading update

Inspection / Consultancy / Contractor companies – Asset Owners

Examples of dialogue and customer engagement

• Negotiations for multiple service cooperation agreements
• Active dialogue with larger contractors, Engineering and international Inspection companies for Proof of Technology projects and trial periods.
• Covid-19 impacts practical challenges in relation to Customer demonstrations

Exploring industry partnership opportunities:

Railroad inspection Dam inspection

No effective inspection

Nearly 3 billion sleepers worldwide (1)

twice a year (3)

Deterioration, abrasion, and cracking are the main problems related to concrete sleepers (4)

Need for faster and more efficient inspection

Appx 58.700 large dams worldwide, 41% in China (5) tool today Regulated to Inspect

At least 1,680 dams across the US are rated in poor or unsatisfactory condition (6)

Most constructed between 1930 and 1970 with a design life of 50 to 100 years. Signs of aging after 50 years

94,000 dams in China are ageing (7)

5, 7, 8 "SOS by UN scientists on the world's largest, aging dams"

6 "At least 1,680 dams across the US pose potential risk" - Associated press: 7 Ageing Water Infrastructure: An Emerging Global Risk" UNU Institute for Water, Environment and Health

1, 2, Spanish National Research Council

• 3, BaneNOR (Norway):
• 4, Fatigue Life Assessment Method for Prestressed Concrete Sleepers

Keeping concrete structures safe, sustainable and financially viable 15

Exploring industry partnership opportunities:

Cooling tower inspection Bridge inspection

Cooling towers are used in power plants, oil refineries, petrochemical plants and

natural gas plants (1)

Condition assessment of cooling towers is challenging due to their size, geometry and operational constraints (2)

Surveyors need remote systems (3)

The frequency of visual inspection of natural draft cooling towers ranges between 3 and 6 years. (4)

In the US 47,000 bridges are in urgent need for inspection and maintanance (5)

Aging bridge base Growing maintenance Backlog (6)

Inspection is a highly manual process (7)

Concrete integrity below surface hard to detect and today's tool often fail to properly detect issues (8)

1, Harmon.com 2, 3, 4, Evaluation and Repair of Natural Draft Cooling Towers 5, The Global Wind Energy Council: Supply Side Analysis 2019 report 6, 7, 8 Research report for Elop from Boston Consulting Group

Effective inspection of railway sleepers

Nearly 3 billion sleepers worldwide (1)

Regulated to Inspect twice a year (3)

Deterioration, abrasion, and cracking are the main problems related to concrete sleepers (4)

Need for faster and more efficient inspection

4, Fatigue Life Assessment Method for Prestressed Concrete Sleepers

Effective inspection of dams

Appx 58.700 large dams worldwide, 41% in China (5)

At least 1,680 dams across the US are rated in poor or unsatisfactory condition (6)

Most constructed between 1930 and 1970 with a design life of 50 to 100 years.

Signs of aging after 50 years - 94,000 dams in China are ageing (6)

No effective inspection tool today

5, 7, 8 "SOS by UN scientists on the world's largest, aging dams"

6 At least 1,680 dams across the US pose potential risk - Associated press:

6 Ageing Water Infrastructure: An Emerging Global Risk" UNU Institute for Water, Environment and Health

Effective inspection of cooling towers

Cooling towers are used in power plants, oil refineries, petrochemical plants and natural gas plants (1)

Condition assessment of cooling towers is challenging due to their size, geometry and operational constraints (2)

Surveyors need remote systems (3)

The frequency of visual inspection of natural draft cooling towers ranges between 3 and 6 years. (4)

1, Harmon.com 2, 3, 4, Evaluation and Repair of Natural Draft Cooling Towers

On track to deliver on our growth plan

Transforming data into unique insight to construction industry stakeholders

Simplifai in brief

Hire Digital Employees to support your staff. They are available 24/7 every day of the year. They work quickly and efficiently and can process large amounts of customer inquiries.

Norwegian AI Company HQ in Oslo, 90 FTE's

Services: Digital Employees

Core: Standardized Solutions, ≈ 90% Automation Grade, Quick Implementation and ROI 90% SaaS

Tech: AI, Natural Language Technology, Natural Language Processing (free-text)

Products: Emailbot, Documentbot, and Chatbot

SaaS Business Model: Building recurring and scalable revenue model

Key stepping stones for Simplifai

Capturing a high growth market

Building sales pipeline

Awareness

Initiating commercial partnerships Solutions marketing Auditions and tendering Building products as part of commercial cooperation

• Establishing close
• industry tech approval,
• Recruiting world class
• Solutions available on recognised marketplaces
• Develop commercial partnerships
• International breakthroughs (i.e. India, Singapore)

Recognition

• х Exponential sales growth
• х Widespread international
• х Recognized as leading vendor within natural language-based business

Simplifai: speedy and cost-efficient global expansion strategy

Home markets; Direct sales and several non-exclusive partners

Other markets; Establish presence and customer base quickly through strategic agreements with strongly incentivized distributors

Leverage India as commercial hub for direct sales and partner support for ME and APAC

International partnerships

• Microsoft Geo-Expansion program
• Strong regional partners
• Advanced or early stage discussions with partners in several regions

Simplifai – trading update

• Significant negative impact from Covid-19, but grew recurring revenues by ~50% from Q4 2019 – Q4 2020

• Total revenues 2020: NOK 11,2 million 2020

  • ARR share of revenue doubled to ~38%
  • EBIT result NOK –23,9 million

• Increase ARR share to 50%

• Strong increase in growth rate
• Expand into new industries

2021

• New partnerships; OEM, resale and distribution
• Entry into new geographical markets

The future of SHM

Cloud based

Smart automation

Predictive analysis

~1000

Becoming a NOK billion revenue company

• 2025 target Establish Simplifai as a global ISV within AI business process automation technology
• Establish Elop technology as an industry standard

~11

Revenue, MNOK

• Benefit from Simplifai AI capabilities to build next generation structural health monitoring system

Gradual shift towards contracted recurring software revenue

Be a world leading provider of preventive maintenance through data analytics and software solutions

2025 target

>80% ARR based on annual recurring license fees from SaaS offering

Summary and outlook

Summary Outlook

• Delivering on go-to-market strategy Awareness, credibility, success stories
• Solid lead pipeline
• On-boarded Simplifai capabilities, driving synergies and support further growth on AI business line
  • Identified NOK 30 million in synergies to be realised in 2021
• Simplifai headwind on sales, partnership and market entry

• Growing ARR share

• Continued strong and growing interest level in Elop's ultrasound technology

• Expect to enter industrial partnership in Q2 2021
• Covid-19 restrictions may continue to impact Elop's ability to perform live demonstrations
• Strong MRR growth from Simplifai expected to continue
• Planned market entry for Simplifai into new geographical markets in Q2, and shortened sales cycles

APPENDIX

Elop Condensed statement of profit and loss

Amounts in NOK	2. half year 2020	2020	2. half year 2019	2019
Reveues	-	-	20,042	29,692
Other operating revenue	-	-	-	-
Total revenue	-	-	20,042	29,692
Cost of Sales	(133,731)	(144,512)	(31,373)	(51,896)
Employee benefit expenses	(6,363,898)	(9,452,849)	(1,304,761)	(3,183,566)
Other operating expenses	(10,714,931)	(21,015,519)	(8,524,267)	(9,856,101)
Depreciation	(376,532)	(419,982)	(19,770)	(27,120)
Operating profit/(loss) (EBIT)	(17,589,092)	(31,032,862)	(9,860,129)	(13,088,991)
Financial income	76,614	76,873	6,473	14,981
Financial expenses	(149,460)	(260,511)	(252,503)	(378,411)
Net financial items	(72,846)	(183,638)	(246,030)	(363,430)

Share of profit (loss) eqity - accounted investees

Profit (loss) before tax	(17,661,938) (31,216,500)	(10,106,159)	(13,452,421)
--------------------------	------------------------------	--------------	--------------

Income tax benefit (expense) -

Profit (loss) for the period (17,661,938) (31,216,500) (10,106,159) (13,452,421)

Elop Condensed balance sheet

Amounts in NOK	2020	2019
Assets
Non-current assets
Intangible assets	28,689,977	12,372,858
Property, plant and equipment	1,366,825	256,400
Right of use assets	7,253,367
Total non-current assets	37,310,169	12,629,258
Current assets
Inventory	164,488	-
Trade receivables	-	12,865
Other current receivables	10,439,111	1,314,629
Share capital/premium receivables	-	49,210,504
Cash and cash equivalents	116,271,534	8,014,384
Total current assets	126,875,133	58,552,382
TOTAL ASSETS	164,185,302	71,181,640

Amounts in NOK	2020	2019
Equity and liabilities
Equity
Share capital	3,515,146	2,001,324
Share premium	181,219,901	27,781,676
Other equity reserves	4,571,922	53,566,186
Retained earnings (deficit)	(54,663,812)	#########
Total equity	134,643,157	59,901,876
Non-current liabilities
Non-current liabilities to financial institutions	4,821,429	4,910,714
Non-current lease liabilities	5,325,940	-
Total non-current liabilities	10,147,369	4,910,714
Current liabilites
Other loan	-	2,000,000
Trade payables	9,852,790	1,550,282
Current tax liabilities	1,270,640	643,570
Other current liabilities	8,271,346	2,175,198
Total current liabilities	19,394,776	6,369,050
TOTAL EQUITY AND LIABILITIES	164,185,302	71,181,640

Elop Condensed cashflow statement

Amounts in NOK	Total 2020	Total 2019
Profit before tax	(31,216,500)	(13,452,420)
Adjustment for:
Depreciation	419,982	27,120
Share-based payments expences	216,240	4,286,593
Net interest paid	176,874	356,681
Changes in net current operating assets	3,595,955	3,476,791
Paid tax	-
Cash flow from operating activities	(26,807,449)	(5,305,235)
Payment for property, plant and equipment	(1,304,168)	(226,620)
Payment for intangible assets	(16,317,121)	(5,560,073)
Cash flow from investing activities	(17,621,289)	(5,786,693)
Net repayment of other debt	(2,089,285)	1,746,506
Net interest	(176,873)	(308,939)
Capital increase received funds	154,952,046	17,500,000
Cash flow from financing activities	152,685,888	18,937,567
Net cash flow	108,257,150	7,845,639
Cash and cash equivalent at the beginning of the period	8,014,384	168,745
Cash and cash equivalent at the end of the period	116,271,534	8,014,384