Q1 2023 report

May 9th 2023

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Agenda

o A brief intro to SmartCraft
o Q1 financial highlights
o Solid market fundamentals
o Summary and Q&A

Our solutions provide competitive edge for our construction customers

o Ensure digital flow of information between people
o Store and process all data in one place accessible for all
o Data in the field is captured with mobile Apps
o Total overview of documentation
o Revenue and cost control on each project
o Supporting sales processes in a competitive environment

Leading position in the Nordics

o Constantly gaining markets share
o ~ 12.000 customers 33% growth post IPO
o ~ 120.000 users 26% growth since IPO
o ~ 200 Employees

Strong local presence in key markets

Q1 2023 highlights

Continued strong growth, high margins and low churn

Solid growth in all segments

o Organic recurring revenue +19%
o EL-verdi and Inprog acquired in 2022
o Margin improvements in all solutions
o Increased ARPC driven by price optimization and upsales
o Organic recurring revenue +13%
o Growth from a strong Q1'22
o Increased ARPC driven by price optimization and upsales
o Two new sales leaders recruited in Q1
o Organic recurring revenue +11%
o Growth from a strong Q1'22
o Exposure to large customers in "new build" construction
o Low churn of 3%, but fewer initiated projects affect growth
o Move focus to renovation

Continued growth in revenue and increasingly strong profitability

o Increased recurring revenue share
- o Driven by strategic decline in non-recurring revenue
o 15.5% organic growth in recurring revenue
o Continued great track record of ability to increase margin in acquired solutions
o Consistent high EBITDA margin, continue to focus on scalability
o Margin increase despite dilution from M&A
o Q1 in line with plan
o Development of SmartCraft Core and integrations for cross sale and upsales
o Expecting 9% FY'23, as communicated in Q4

Solid financial position and strong cash flow

- to support growth strategy and M&A activity

o Cash positive all quarters, Q1 seasonally strong

o Cash generated from operations enables strategic investments and M&A

o Net cash positive

o Negative net working capital driven by customer prepayments
o Acquired ~0.8% (~1.3m shares , per april), continued buy-back program of additional 2.0%

High growth in recurring revenue as basis for success

o 24% growth in ARR

o 15% organic growth
o Acquisition of Elverdi (June 2022) and ELinn (October 2022)

o Prices increased Dec'22 or Jan'23

o Implemented gradually during 2023, as subscription renewals, are spread throughout the year

205,3 225,9 259,9 266,8 278,9 296,1 303,6 318,3 347,0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 ARR development, mNOK YoY organic growth +17% +21% +20% +24% +16% +17% +15%

Quarterly ARR growth history, mNOK

Quarterly currency adjustments not displayed in chart

ARR bridge QoQ, mNOK

Solid market fundamentals

Focus on the growing renovation segment in Finland

SmartCraft has great solutions and a long track record in renovation

Statistics Finland, RT Forecast Mar 2023:

o Construction in general is declining by -3.5% in 2023. New housing market see dramatic decrease of 20%
o Renovation biggest segment in construction industry
o Slowdown in new construction will speed up repairs and renovation

Forecasted Growth in Finnish renovation segment

Strong demand for SmartCraft solutions

- despite slowdown in new building projects

o Good pipeline of potential customers
o Upsell and cross sell opportunities
o Energy saving initiatives drive great demand for our largest customer groups
o Our customers work with maintenance, services and upgrades

Total invoiced amount from large Swedish customer group (SEK)

Rising costs and higher interest rates triggers need for efficiency measures Improved profitability and efficiency

o Revenue

o On-site sales
o Invoicing of jobs
o Improved pricing calculations
o Improved utilization of personnel
o Professional offer/tender to customers
o Cost of goods sold
- o Improved purchasing conditions/price comparisons
- o More accurate calculations material consumptions
o Other operating expense
- o Improved P&L visibility
- o Optimizing resource planning

with SmartCraft solutions *

+ 5 to15 %

Bygglet customers grow faster than the market

o New Bygglet customers started using solution in 2019
o Reference group, ~1000 random Swedish companies in same category
o SmartCraft customers grew nearly twice as much as reference group

Revenue growth; Bygglet customers vs reference group (tSEK)

Franchise chain achieves increased revenue and profits with Cordel

o Analysis of 25 Norwegian plumbing companies 2019-2021
o Focused on using SmartCraft digital tools to increase revenue and margin Revenue +35% Margins increased 101 %