Nixu Oyj — Earnings Release 2021

Aug 12, 2021

Nixu Corporation's Half-Year Financial Report 2021: Improved profitability and building up for growth

Nixu Corporation's Half-Year Financial Report 2021: Improved profitability and building up for growth

Nixu Corporation, Stock Exchange Release on August 12, 2021 at 8:30 AM EEST

This release is a summary of the Nixu Corporation’s January 1 – June 30, 2021
Half-Year Financial report. The complete report is attached to this release as a
pdf-file. It is also available on the company website at
https://www.nixu.com/H12021.

Highlights for January–June 2021:

· Revenue: EUR 26,720 thousand (27,655), change -3%.
Organic growth: -3%. Managed continuous services declined by -1% representing
19% of revenue.
· EBITDA: EUR 805 thousand (59), share of revenue: 3% (0%).
· Adjusted EBITDA: EUR 1,198 thousand (764), share of revenue: 5% (3%).
· EBIT: EUR -154 thousand (-1,066), share of revenue: -1% (-4%).
· Nixu reorganized its operations to increase cross-border alignment for
improved customer experience, improved brand recognition and efficiency in
staffing and deliveries.

Financial Guidance for 2021

Nixu changed its financial guidance for 2021 with a stock exchange release on
June 23, 2021. According to the new guidance, Nixu estimates its revenue to
remain on the same level and its EBITDA to decrease from 2020. Simultaneously
investments to growth are increased.

Previous guidance for 2021: Nixu estimates its revenue to grow organically and
its EBITDA to increase from 2020. Simultaneously investments to growth are
increased.

Key Figures

[][][][]
EUR thousand 1 Jan-30 Jun 2021 1 Jan-30 Jun 2020 1 Jan-31 Dec 2020
Revenue 26,720 27,655 53,272
Result of the -452 -1,457 -1,835
period
Earnings per share -0.06 -0.20 -0.25
(EUR)
EBITDA 805 59 2,895
EBITDA, % of net 3.0 % 0.2% 5.4%
sales
Adjusted 1,198 764 3,350
EBITDA[1,2]
Adjusted EBITDA, % 4.5 % 2.8% 6.3 %
of net sales[1,2]
EBIT -154 -1,066 -702
EBIT, % of net -0.6% -3.9% -1.3%
sales
Adjusted EBIT[1,2] 238 -361 -247
Adjusted EBIT 0.9% -1.3 % -0.5 %
%[1,2]

[1] Adjustment items are material items outside the ordinary course of business,
which costs related to reorganization and business combinations. January-June
2021 EBITDA included the non-recurring costs EUR 393 (705) thousand.

[2] The figures for the comparison period have been adjusted for COVID-19 NOW
benefit from other operating income to adjustment items. The effect on the
adjustment items is 1 Jan-30 Jun 2020 EUR 147 thousand and 1 Jan-31 Dec 2020 EUR
337 thousand.

EUR thousand 30 Jun 2021 30 Jun 2020 31 Dec 2020
Equity ratio, % 32.9% 32.5% 34.4%
Net interest-bearing debt 2,156 2,538 2,244
Net gearing, % 16.0% 18.0% 16.0%

The figures presented in the half-year financial report have not been audited.

Petri Kairinen, CEO of Nixu:

The first half of 2021 continued to be tinged by the global coronavirus
pandemic, which caused some instability in service deliveries. Cost savings
during 2020 and the decrease in the number of employees contributed to the fact
that the previous revenue level was not reached during the beginning of the
year, and the revenue decreased by 3%. During this time the average number of
employees was 38 persons (circa 9%) lower than in the comparison period. At the
end of 2020, Nixu relaunched its efforts to accelerate growth investments,
however, we were still able to significantly improve the EBITDA, which was EUR
805 thousand in H1 2021. We were also able to recruit efficiently and at the end
of the period were only 14 persons less than in the comparison period.

Nixu’s strategy relies firmly on the growing need of digitalizing companies to
have a specialized cybersecurity partner alongside them. Nixu’s target clientele
are especially internationally operating enterprises, which we want to serve
with the One Nixu model and services in the different markets were we operate.
Because of this we changed our operating model during the period. With the new
model, we strive for a better customer experience for these clients, better Nixu
brand visibility in markets outside Finland, and improved profitability with
better-optimized deliveries as a result of a truly international operating model
and teams.

In connection with the change in the operating model, we formed a new business
unit focused on ensuring the security of IoT devices. In April, we strengthened
our position in Denmark’s fragmented cybersecurity market when the employees of
Danish cybersecurity company C-cure transferred to Nixu. Throughout the review
period, we have invested heavily in ensuring the deployment of the new operating
model along with client work, personnel and recruitment, and training of new
experts in the cybersecurity sector.

During the economically uncertain pandemic period, many companies’ cybersecurity
measures and development projects have not kept pace with the accelerating
digitalization trend. We are now seeing signs that these postponed cybersecurity
projects are again relevant, and we believe market demand will continue to grow
during the latter half of the year in countries where Nixu operates. Together
with increased recruitment, a more client- centric operating model and bright
market outlook for cybersecurity services, we are well positioned to continue
serving our clients successfully across Northern Europe.

Financial Reporting in 2021

Nixu publishes, in addition to its financial statements and annual report, its
half-year financial report, CEO’s review, revenue information and EBITDA for the
first and third quarters, and stock exchange and press releases in accordance
with Nixu’s disclosure policy. These releases and a range of other information
for investors is available on the company website at
https://www.nixu.com/investors.

October 14, 2021        Q3/2021 CEO’s review, revenue information and EBITDA

News conference
A news conference will be available for analysts, investors and media on
Thursday, August 12, 2021 at 9:30 AM EEST at Scandic Simonkenttä, Simonkatu 9,
Helsinki. The event will be available through a live webcast at
https://nixu.videosync.fi/2021-08-12-nixu-corporation-h1-2021.

Nixu Corporation

Attachment: Nixu Half-Year Financial Report 2021

Further information:
CEO Petri Kairinen, Nixu Corporation
Telephone: +358 40 832 1832, e-mail: petri.kairinen@nixu.com

Distribution:
Nasdaq Helsinki
Main media
www.nixu.com

Nixu in Brief:
Nixu is a cybersecurity services company on a mission to keep the digital
society running. Our passion is to help organizations embrace digitalization
securely. Partnering with our clients we provide practical solutions for
ensuring business continuity, an easy access to digital services and data
protection. We aim to provide the best workplace to our team of over 400
cybersecurity professionals with a hands-on attitude. With Nordic roots we serve
enterprise clients worldwide. Nixu shares are listed on the Nasdaq Helsinki
stock exchange.
www.nixu.com

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