SmartCraft ASA — Investor Presentation 2021

Aug 24, 2021

Q2 and first half year 2021 results

SmartCraft ASA

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Agenda

• A brief intro to SmartCraft
• Q2 operational and financial highlights
• Summary and outlook
• Q&A

A brief intro to SmartCraft

Presenters

Gustav Line

Chief Executive Officer

Kjartan Bø

Chief Financial Officer

History of strong profitability and rapid growth

Note: Financials for 2019 and 2020 prepared according to IFRS, 2018 financials prepared according to NGAAP

1. Including full-year effect of full-year effect of Congrid; 2. Like-for-like growth defined as weighted average growth of companies part of the group at the end of the year

Q2 and half year 2021 results 23.08.2021 Slide 6

Great potential in existing markets

The construction industry has a low level of digitalization compared to other industries

• Nordic market opportunity at ~50x SmartCraft 2020 sales
• Market growing by 15% annually
• Dramatically increase in building material costs requires great control of the use of materials

Source: ADL, alllabolag.se, proff.no, taloussanomat.fi, statistical data from SCB, SSB, Statistics Finland, Eurostat, GlobalData 1. Nordic defined as Norway, Sweden and Finland; 2. Based on bottom-up market estimates for Norway, Sweden and Finland; 3, CAGR in penetrated market 2020-2025, 4. Based on 2021 market estimates; 5. "Northwestern Europe" outside current scope defined as Germany, Switzerland, The Netherlands, Denmark, Austria and United Kingdom

Highly integrated solutions with many touch points

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

Multiple attractive levers to drive organic growth

Clear growth levers to be driven by a strong commercial organisation and proven go-to-market model

Q2 operational and financial highlights

Continued focus on M&A, product development and organization

• Financial results and execution in Q2 according to plan
• 36% revenue growth
• 47% adjusted EBITDA
• Successful IPO
• Acquisition of HomeRun strengthens position in Finland
• Christian Saleki started as CTO enabling further synergies and scale
• Strengthened position in Electro with strategic customer wins and new features in solutions
• Continued focus on sales excellence
• Success with digital events and meetings continues
• EL-VIS 1500 participants at digital events

Successful IPO – Solid platform for future growth

• Solid domestic and international investors including
• Capital World Investors
• Carnegie Fonder AB
• Handelsbanken Fonder AB
• Strengthened Board of Directors with broad industry and international experience
• IPO proceeds gross mNOK 568*:
• Redeemed preference shares mNOK 209
• Paid down loan facilities mNOK 234
• Strengthened investment and acquisition ability

Key facts Listed Oslo Børs, Norway IPO date 24 June 2021 Reporting interval Market cap Pr 20/8/21: BNOK 3.84

Quarterly

Ticker code

SMCRT

Research coverage

ABG Sundal Collier Berenberg Carnegie

Website

Smartcraftready.com

Product development on plan

• BIM viewer released and pilots ongoing
• Cordel Quality Assurance module reached 600 users
• EL-VIS is on plan for internationalization, on target to release in Finland in Q3
• Released new Bygglet App

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

• HomeRun (acquired May 21)
• Project communication and management platform for housing projects
• Great potential to scale solution cross customer base

• Strengthened position in Finland

• 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 and high profitability in Q2

• Strong growth in ARR and ARPC
• 35,7% revenue growth
• 17,9% organic growth
• 47,1% adjusted EBITDA margin
• Churn stable at 6,3%
• Strong cash conversion

Q2 and half year 2021 results 23.08.2021 Slide 16

Q2 2021 proves the strong momentum of the business and the scalability of the business model

Note 1. Defined as weighted average growth of the companies part of the group in Q1'20 adjusted for currency effects

Q2 and half year 2021 results 23.08.2021 Slide 17

Healthy development in both segments in Q2

• General construction revenue growth 69%
• Acquired two companies
• Existing solutions in general construction drive EBITDA growth
• Stable revenue growth of 12% in specialized construction solutions
• Strong EBITDA margin due to unique value proposition and seasonality

• Segments have equal share of revenue in Q2

• General construction growth driven by both acquisitions of Congrid and Homerun and existing solutions

• Both segment's underlines the business scalability

Financials

• Maintaining a high gross margin
• Payroll expenses increase from acquisition, FTE growth and salary increases
• EBITDA adjusted for restructuring/IPO expenses, acquisition costs and other one-off items
• D&A increase driven by acquisition and R&D
• Net financial items decrease as Q1'20 was largely affected by currency changes
• 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)	Q2 2021 unaudited	Q2 2020 unaudited	change	change %
Revenue from customers	63 889	47 093	16 796	35,7 %
Purchase of goods and services	5 734	4 727	1 007	21,3 %
Gross profit	58 154	42 366	15 789	37,3 %
Gross margin	91,0 %	90,0 %	+1,0 pts	+1,0 pts
Payroll and related expenses	22 717	15 755	6 962	44,2 %
Other operating expenses	29 131	5 890	23 241	394,6 %
EBITDA	6 306	20 720	(14 414)	(69,6 %)
Adjustments of special items	23 755	240	23 515	9798,1 %
Adjusted EBITDA	30 062	20 960	9 101	43,4 %
EBITDA margin	9,9 %	44,0 %	(34,1 pts)	(34,1 pts)
Adjusted EBITDA margin	47,1 %	44,5 %	+2,6 pts	+2,6 pts
Depreciation and amortization	5 064	4 196	867	20,7 %
EBIT	1 243	16 524	(15 281)	(92,5 %)
Net financial income (expense)	(2 282)	339	(2 621)	(773,3 %)
EBT	(1 040)	16 863	(17 903)	(106,2 %)
Tax expense	1 121	3 119	(1 998)	(64,0 %)
Profit (loss)	(2 161)	13 744	(15 905)	(115,7 %)

Financials

• Repaid all loan facilities, negative NIBD post IPO

• Increasing negative NWC driven by customer payment plans

• Strong cash flow in Q2 excl. IPO and M&A

• Cash conversion in line with expected level
• IPO proceeds of mNOK 500 offset by repayment of loan facilities and redemption of preference shares

Summary and outlook

Summary & outlook

Key focus H2 2021

• Integrate HomeRun and Kvalitetskontroll
• ELVIS in Finland
• Cordel Nordic Calculation
• Continue focus on Electro companies
• Investigate cross group opportunities

Medium-term financial targets

• 15-20% annual organic revenue growth
• Customers need to digitalize to increase productivity and reduce costs of material
• Large underpenetrated market growing double digits annually
• Cross sell and upsell
• Adjusted EBITDA to increase compared to the 2020 baseline due to scalability and synergies

Q&A