INVL Technology — Interim / Quarterly Report 2021

Apr 6, 2022

INVL

TECHNOLOGY

INVL TECHNOLOGY

RESULTS OF 2021

INVL Technology is a closed-end investment company (CEF) which invests in IT businesses. It is listed on the Nasdaq Vilnius exchange. A strategy of INVL Technology is to invest in national-level European IT businesses with high globalization potential and grow them into global players by utilizing the sales channels and intellectual capital of the managed companies.

NAME OF THE COMPANY	Special closed-end type private capital investment company INVL Technology
COMPANY CODE	300893533
START OF CEF ACTIVITIES	14-07-2016
PERIOD OF ACTIVITY	10 years (+ 2 years)
MANAGEMENT COMPANY	INVL Asset Management UAB

INVL Technology directly and indirectly managed portfolio companies are classified into 3 areas of activity:

BUSINESS CLIMATE IMPROVEMENT AND E- GOVERNANCE	SOFTWARE SERVICES AND CRITICAL IT INFRASTRUCTURE	CYBERSECURITY

NRD Companies working in this area combine legal, consultancy and IT skills to address governance and economic digital infrastructure development challenges effectively. They develop national state-of-art registries and provide digital and mobile signature, digital platforms, digital licenses

Novian group provide both stand-alone and integrated solutions and services relevant to the context of digital transformation in the areas of software, IT infrastructure and digitization. Combining the capabilities of its companies in the Baltic and Nordic countries, the Novian group acts as an integrator, ensuring clients get a package of services tailored to their needs.

NRD CS companies working in this area provide technology consulting, incident response and National Computer Incident Response Teams (CIRTs/SOCs) establishment services. They are focused on the services to law enforcement, national communication regulators, CERTs, and corporate information security departments.

NET ASSET VALUE
EUR	31-12-2020	31-12-2021
NAV	33 725 239	36 125 378
NAV per share	2,7700	2,9936
KEY FIGURES OF INVL TECHNOLOGY
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THOUSAND EUR	31-12-2020	31-12-2021
Change in the fair value of financial assets	6 740	2 713
Dividends, interest and other incomes	150	1 440
Operating expenses	(2 123)1	(1 532)2
Net profit (loss)	4 767	2 621
THOUSAND EUR	31-12-2020	31-12-2021
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Financial asset value	32 652	35 365
Cash and Cash equivalents	2 191	2 097
Bonds	408	-
Loans	151	1 189
Other assets	2	-
Total assets	35 404	38 651
Other liabilities	1 6791	2 5262
Equity	33 725	36 125
Total equity and liabilities	35 404	38 651
FINANCIAL ASSETS (THOUSAND EUR)
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Companies	31-12-2020	31-12-2021
NRD Companies (includes Etronika UAB, NRD Systems UAB, Norway Registers Development AS and others)	7 144	6 561
Novian (includes Novian Technologies UAB, Novian Systems UAB, Andmevara Services OU, Andmevara AS, Andmevara SRL, Zissor AS, Elsis PRO)3	19 740	19 599
NRD CS (includes NRD Bangladesh)4	5 535	8 971
FINtime	233	234
Total	32 652	35 365
CHANGE IN FAIR VALUE OF FINANCIAL ASSETS, THOUS. EUR
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Opening balance (2020-12-31)	32 652
Revaluation after elimination of dividends	4 128
Dividends awarded5	-1 415
Closing balance (2021-12-31)	35 365

1 INVL Technology in 2020 has calculated a provision for success and accrued management fees of EUR 1 075 thousand and EUR 460 thousand respectively.
2 INVL Technology has calculated a provision for success and accrued management fees equal to EUR 1 805 thousand and EUR 534 thousand respectively as of 31 December 2021. The impact of the provisions was EUR 730 thousand and EUR 74 thousand on the 2021 results.
3 The acquisition transaction of UAB Elsis PRO was completed on 22 October 2021. A part of the share price has been paid, the final share price will be determined and paid according to the audited financial statements of UAB Elsis PRO for 2021 financial results. The value of Novian as of 31 December 2021 includes the projected final price payable for Elsis PRO shares.
4 NRD Companies AS transferred control of NRD Bangladesh to NRD CS in 2021, therefore the values of NRD Bangladesh were included in NRD Companies AS on 31 December 2020 and in NRD CS on 31 December 2021.
5 Novian UAB declared and paid 2021 dividends of EUR 915 000; NRD CS declared and paid 2021 dividends of EUR 500 000.

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INVL

TECHNOLOGY

INVL TECHNOLOGY

RESULTS OF 2021

THE RESULTS OF INVL TECHNOLOGY PORTFOLIO COMPANIES OF 2021

NRD Companies is a global information technology and consulting group of companies specialized in governance and economic digital infrastructure development.

KEY PROFIT (LOSS) ITEMS, THOUSAND EUR

	NRD Companies^{6}
			NRD AS^{7}		NRD Systems^{7}		Etronika^{7}
	2020	2021	2020	2021	2020	2021	2020	2021
Revenue	6 989	6 347	4 247	3 477	2 430	2 597	1 926	1 934
Gross profit	2 603	2 590	1 216	1 262	906	774	618	775
EBITDA	602	368	144	78	342	113	131	196
EBIT	324	104	136	71	235	9	6	78
Net profit (loss)	152	40	68	55	152	(25)	(26)	75

KEY BALANCE SHEET ITEMS, THOUSAND EUR

	NRD Companies^{6}
			NRD AS^{7}		NRD Systems^{7}		Etronika^{7}
	2020	2021	2020	2021	2020	2021	2020	2021
Tangible assets	259	233	9	4	142	164	106	66
Intangible assets	220	85	14	14	1	-	171	70
Other non-current assets	343	503	307	470	14	16	23	18
Current assets	6 293	6 274	4 107	3 911	2 075	2 357	1 175	1 326
of which cash	927	1 359	67	30	534	788	218	515
Total assets	7 115	7 095	4 437	4 399	2 232	2 537	1 475	1 480
Equity	1 635	1 704	701	796	369	344	602	677
Non-current liabilities	558	257	-	-	215	177	338	80
Of which financial debt	277	190	-	-	215	177	62	14
Current liabilities	4 922	5 134	3 736	3 603	1 648	2 016	535	723
of which financial debt	782	546	490	-	244	494	48	52
Total liabilities and equity	7 115	7 095	4 437	4 399	2 232	2 537	1 475	1 480

1 Unaudited consolidated results of NRD Companies are presented, which includes the results of the companies submitted and the results of NRD Rwanda and NRD Bangladesh (before the transfer of control).
2 The results of Etronika UAB and NRD Systems UAB and NRD AS are included into results of NRD Companies. The audit of standalone financial statements of these entities are in progress.

NRD COMPANIES GROUP REVENUE BY COUNTRY

• Lithuania
• Zanzibar
• Barbados
• Mauritius
• Estonia
• Samoa
• Anguilla
• Uganda
• Finland
• Latvia
• Other (18 countries)

• Lithuania
• Barbados
• Estonia
• Anguilla
• Tanzania
• Palestine
• Cayman Islands
• North Macedonia
• Mauritius
• Finland
• Kenia
• Other (17 countries)

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INVL TECHNOLOGY

INVL TECHNOLOGY

RESULTS OF 2021

NOVIAN - The Novian group's companies work in software services, IT infrastructure, and digitization, offering services and solutions for developing organization's digital advantage. Novian's main areas of focus are digital transformation services, data empowerment, and artificial intelligence and robotics solutions.

KEY PROFIT (LOSS) ITEMS, THOUSAND EUR

	Novian^{8}
		Technologies				Software services						Media monitoring and digitization
			Novian Technologies		Andmevara Services OU/ Andmevara SRL^{9}		Novian Systems^{10}		Andmevara AS		Elsis PRO		Zissor
	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021
Revenue	24 113	25 859	18 223	16 523	651	979	3 739	3 971	789	508	2 632	2 992	711	886
Gross profit	5 737	6 479	2 850	2 679	651	876	1 394	1 076	190	234	865	907	652	708
EBITDA	1 788	1 641	1 628	1 267	65	157	394	291	(256)	(81)	274	298	108	105
EBIT	996	834	1 065	875	49	147	264	148	(318)	(142)	76	100	88	103
Net profit (loss)^{11}	596	476	774	593	30	117	225	145	(374)	(219)	1	86	68	102

KEY BALANCE SHEET ITEMS, THOUSAND EUR

	Novian^{8}
		Technologies				Software services						Media monitoring and digitization
			Novian Technologies		Andmevara Services OU/ Andmevara SRL^{9}		Novian Systems^{10}		Andmevara AS		Elsis PRO		Zissor
	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021
Tangible assets	1 006	1 419	611	1 124	19	28	233	146	138	78	34	28	3	12
Intangible assets	1 969	2 368	62	48	3	4	1 902	1 882	1	-	609	434	-	-
Other non-current assets	711	1 590	512	234	-	-	151	1 242	-	-	18	33	104	110
Current assets	9 820	9 524	7 021	5 667	134	295	2 491	2 814	248	95	1 121	1 089	426	397
Of which cash	2 344	2 643	1 323	1 440	37	111	496	424	21	36	1	357	274	259
Total assets	13 506	14 901	8 206	7 073	156	327	4 777	6 084	387	173	1 782	1 584	533	519
Equity	5 836	4 524	3 365	2 456	(19)	104	2 892	3 037	(592)	(811)	246	332	365	391
Non-current liabilities	751	3 353	175	279	-	-	450	1 389	86	27	200	483	40	-
Of which financial debt	360	2 622	147	262	-	-	87	1 158	86	27	-	-	40	-
Current liabilities	6 919	7 024	4 666	4 338	175	223	1 435	1 658	893	957	1 336	769	128	128
Of which financial debt	1 042	1 065	209	420	50	50	495	829	729	876	-	-	-	-
Total liabilities and equity^{1}	13 506	14 901	8 206	7 073	156	327	4 777	6 084	387	173	1 782	1 584	533	519

1 Unaudited aggregated operating results of the Novian Group are presented, which include the results of the presented companies and the results of UAB Novian. UAB Elsis Pro was acquired in 2021, therefore the results of this company are aggregated only in 2021. The value of investments in subsidiaries has been eliminated in aggregating the balance sheet items. The audit of standalone financial statements of Novian Technologies UAB, Novian Systems UAB, Elsis Pro UAB and Zissor AS are in progress.
2 Includes results of Andmevara OU and Andmevara SRL.
10 Acena, UAB was merged into Novian systems UAB on 31 December 2020. Aggregated merged information of these two companies are shown.
11 Adjusted net profit is represented after eliminating one-off impairments of investments in subsidiaries. In 2020 Novian Systems, UAB eliminated the impairment of Andmevara AS EUR-64 thousand (additional deferred income tax income EUR 10 thousand) and impairment of Acena, UAB EUR -27 thousand (income from additional deferred income tax - EUR 4 thousand). The aggregated net profit of the Novian group was adjusted accordingly.

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INVL TECHNOLOGY

INVL TECHNOLOGY

RESULTS OF 2021

NOVIAN GROUP REVENUE BY COUNTRY

• Lithuania
• Estonia
• United Kingdom
• Norway
• Rwanda
• Burundi
• Latvia
• Kyrgyzstan
• Botswana
• Other (22 countries)

• Lithuania
• Austria
• Estonia
• Rwanda
• United Kingdom
• Norway
• Moldova
• Kenia
• Denmark
• Other (25 countries)

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INL

TECHNOLOGY

INVL TECHNOLOGY

RESULTS OF 2021

NRD CS establishes cybersecurity capacity and enhances cyber resilience to nations and organizations. The company specializes in the establishment and modernization of cybersecurity teams (CSIRTs) and security operations centers (SOCs) as well as cyber threat intelligence and managed security services.

KEY PROFIT (LOSS) ITEMS, THOUSAND EUR¹²

	2020	2021
Revenue	3 229	5 365
Gross profit	1 519	2 347
EBITDA	434	784
EBIT	250	615
Net profit (loss)	321	603

KEY BALANCE SHEET ITEMS, THOUSAND EUR

	2020	2021
Tangible assets	181	122
Intangible assets	46	1
Other non-current assets	140	209
Current assets	2 079	3 007
Of which cash	654	1 618
Total assets	2 446	3 339
Equity	1 390	1 493
Non-current liabilities	57	37
Of which financial debt	57	12
Current liabilities	999	1 809
Of which financial debt	44	48
Total liabilities and equity³	2 446	3 339

¹²The audit of the financial statements of NRD CS UAB are in progress.

NRD CS REVENUE BY COUNTRY