SmartCraft ASA — Investor Presentation 2021

Nov 10, 2021

Q3 and YTD 2021 results

SmartCraft ASA

10th November 2021

Agenda

• A brief intro to SmartCraft
• Q3 operational and financial highlights
• Summary and outlook
• Q&A

Disclaimer

IMPORTANT – You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by SmartCraft ASA (the "Company") or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectively, the "Information"). In accessing the Information, you agree to be bound by the following terms and conditions.

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Simplify business for construction companies

Become the leading provider of specialized digital solutions for construction companies in Northwestern Europe

SmartCraft has a clearly differentiated and unique position in the value chain Least

The leading Nordic provider1 of mission critical solutions for the construction industry

Vast market opportunity, digitizing construction in the Nordics and North-Western Europe

Strong product portfolio with pure construction focus

Attractive SaaS business model

Unmatched combination of growth and profitability

Slide 6

1) Currently penetrated market. Source: ADL

Q3 and YTD 2021 results

Strong financial profile and attractive SaaS metrics

Note: Based on YTD 30.09.2021 financials prepared according to IFRS

1. Defined as revenues from fixed price subscriptions; 2. Defined as subscription revenue on fixed price + transaction based pricing, 3. Conversion from meetings to sales in 2020

Q3 and YTD 2021 results Slide 7

Solid platform for future growth Key facts

• Experienced management team with unique industry skills and proven SaaS track record
• 180 employees of which 1/3 work in R&D
• Solid balance sheet with net cash position
  • Strong investment and acquisition ability
• Solid domestic and international shareholder base
• Management and Board 10,4% ownership

Gradually integrating products and technology to leverage scalability

Q3 and YTD 2021 results Slide 9

Highly integrated solutions with many touch points

Multiple levers for growth

… driven by a strong commercial organization and proven go-to-market model

Organic growth: Further optimization of marketing and sales

M&A in existing and new geographies

Q3 operational and financial highlights

Some operational highlights in Q3

Proven M&A ability in a fragmented market – SmartCraft well positioned to lead the consolidation

• Kvalitetskontroll (acquired July 2021)
• Quality Assurance and Environment, Health & Safety solutions
• Great opportunities for cross sell in Norway and potentially the Nordics
• Establish SmartCraft as an industry leader with strong expertise in this area

M&A strategy

• Buy complementary solutions in existing and new markets
• Use acquired solutions in new geographies as a bridgehead for existing portfolio solutions
• Buy similar best-in-class solutions in new geographies
• Potential to offer a combination of existing solutions to new geographical markets

Strong growth in recurring revenue and ARPC in Q3 259.9

• 50% growth in ARR
  • 16% organic growth from new sales and upsales
  • Acquisition of Congrid in Dec 2020, HomeRun in May 2021 and Kvalitetskontroll in July 2021
• 22% growth in ARPC, to NOK 27 903
• 96% recurring revenue share
  • Fixed pricing (ARR), 16% organic growth
  • Transaction based pricing, 21% organic growth

Q3 2021 proves the strong momentum of the business and the scalability of the business model

• Continued solid organic growth with additional M&A
• Increase in recurring revenue share
• 17% organic growth in recurring revenue
• Q3'21 margin diluted 6%-pts by acquisitions
• Expect to increase margin in acquired companies over time

• No capex in recently acquired companies,

project evaluation ongoing

• R&D capex expected to continue to increase in line with growing revenues

Note 1. Defined as weighted average growth of the companies part of the group in Q3'20 adjusted for currency effects

Q3 and YTD 2021 results Slide 16

Financials

• Acquired Kvalitetskontroll
• Equity increase related to greenshoe option and acquisition

• Strong cash flow in Q3
• Acquisition paid mainly in cash
• Greenshoe option exercised in July

Q3 and YTD 2021 results Slide 17

Financials

• Maintaining a high gross margin
• Payroll expenses increase from acquisition, FTE growth and salary increases
• EBITDA adjusted for special items
  • Restructuring/IPO expenses (tNOK 1 963)
  • Acquisition costs (tNOK 1 710)
• D&A increase driven by acquisition and R&D
• Net financial items increase as the Group repaid loan facilities in connection with the IPO
• Accrued tax is determined by a set representative tax rate for the Group and calculated on basis of GAAP taxable profit

Amounts in NOK (thousands)	Q3 2021 unaudited	Q3 2020 unaudited	change	change %
Revenue from customers	72 160	48 539	23 620	48,7 %
Purchase of goods and services	5 657	4 726	931	19,7 %
Gross profit	66 503	43 813	22 689	51,8 %
Gross margin	92.2 %	90.3 %	+1.9 pts	+1.9 pts
Payroll and related expenses	30 431	18 580	11 851	63,8 %
Other operating expenses	13 259	4 383	8 875	202.5 %
EBITDA	22 813	20 850	1 963	9,4 %
Adjustments of special items	3 673	630	3 043	482,9 %
Adjusted EBITDA	26 486	21 480	5 005	23,3 %
EBITDA margin	31.6 %	43,0 %	(11.4 pts)	(11.4 pts)
Adjusted EBITDA margin	36.7 %	44,3 %	(7.6 pts)	(7.6 pts)
Depreciation and amortization	5 486	4 203	1 283	30.5 %
EBIT	17 327	16 647	680	4,1 %
Net financial income (expense)	496	(3 297)	3 794	115.1 %
EBT	17 824	13 350	4 474	33,5 %
Tax expense	2 730	3 334	(604)	(18.1 %)
Profit (loss)	15 094	10 016	5 078	50,7 %

Summary and outlook

Medium term financial targets stand firm

Slide 20

Q&A