SmartCraft ASA

Investor Presentation • Feb 15, 2023

Q4 2022 report

SmartCraft ASA | 15 February 2023

Our vision is to become the leading provider of specialized digital solutions for construction companies in North-western Europe

Disclaimer

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Agenda

• A brief intro to SmartCraft
• Q4 operational and financial highlights
• Solid market fundamentals
• Continued operational improvements
• Summary and Q&A
  • Financial Hearings: IR@smartcraft.com

Our solutions provide competitive edge for our customers

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

4

Large and underpenetrated market

~260,000 construction companies

Low digital penetration

NOK 10bn+ market with double-digit annual growth

Among the least digitized industries

Long tail of service, maintenance & upgrade

Shortage of skilled workers

More building regulations and documentation

5

Increased building costs

Leading position in the Nordics

• Constantly gaining markets share
• 12.000 customers 33% growth post IPO
• 120.000 users
  • 26% growth since IPO

6

~ 200 Employees

Strong local presence in key markets

Q4 2022 highlights

Continued strong growth, high margins and low churn

MNOK 318

Annual Recurring Revenue

+19%

41%

Adjusted EBITDA margin

+2% points *

7

6%

Churn consistently low

Continued growth in revenue and increasingly strong profitability

Solid financial position and strong cash flow

98,5 106,5 115,6 FY'20 FY'21 FY'22 Operating cash flow mNOK

Cash positive all quarters

Cash generated from operations enables strategic investments and M&A

Net cash positive

Negative net working capital driven by customer prepayments

High growth in recurring revenue as basis for success

19% growth in ARR

• 17% organic growth from new sales and upsales
• Acquisition of Elverdi (June 2022) and ELinn (October 2022)
• Positive returns from earlier strategic investments and strong pipeline
  • Effect on sales in Q4 after a prolonged sales cycle in earlier quarters
  • Pipeline still strong going into 2023

ARR development, mNOK

ARR growth, mNOK

Quarterly currency adjustments not displayed in chart

ARR bridge YoY, mNOK

NOK 39.7 million 18.0 % organic growth NOK 38.0 million 15.4 % organic growth

NOK 12.9 million 21.9 % organic growth

NOK 18.5 million 46.7 % adj. EBITDA margin

NOK 18.9 million 49.7 % adj. EBITDA margin

NOK 3.9 million 30.1 % adj. EBITDA margin

11

Solid track record since IPO expected to continue

Delivering consistently on guided organic growth of 15-20%

Medium-term financial targets bolt on M&A 15 – 20% Organic growth Margin expected to increase due to

scalability of the business

19.5% organic CAGR in recurring revenue

16.3% organic CAGR in total revenue

Short-term considerations:

Impact from acquired companies last 12 months

Solid marked fundamentals

Highly effective go-to market strategy

Best in class sales engine with broad reach and highly effective lead conversion

Highly efficient sales process2

1. Calculated as weighted average of CLTV and CAC based on the products and solutions sold over the last 6 months.

6-month period ending in December 2022

Note:

1. Metrics for financial year 2022;

Solutions to support customers in more challenging times Cost control and improved efficiency

• Improved profitability
  • Visualizing health status of ongoing projects
• Reduced material cost and waste
  • New state of art calculation tool
  • Currently in pilot
• No missed-out revenues
  • Overview of ongoing projects not yet invoiced, documented changes and add-ons

Still solid demand for SmartCraft solutions

Despite slowdown in new building projects

• Our customers operate mainly in the SME segment
• Largest customer group, plumbers and electricians, experiencing great demand due to energy saving intiatives
• Strong pipeline
• Great opportunities to increase NRR through upsell and cross sell on existing customers
• Our statistics show increased customer activity

No sign of market decline from existing customer base of SME general contractors

Analysis

• Analysis of existing Bygglet customers in the SME segment
  • mainly service contractors
• Large representative customer base

Average number of projects created per customer

2021 2022 2023

Average invoiced amount per customer

Key Findings

• Average number of projects per customer stay constant
• Customers invoice on average more pr month vs previous year
• Consistent and solid growth

Specialized contractors have a consistently high activity level

Specialized Solution A Specialized Solution B

• Graph shows unique active users in a given month
• Active users increased every month for the last 13 months

• Graph shows unique active customers in a given month
• Steady growth every month (excl. holiday month of July)

Improved competitive position in 2022

Prices in 2023 will be adjusted to reflect inflationary environment

• SaaS model with 96% recurring revenue
  • Low pricepoint at NOK 7 pr user pr day
• Relative competitiveness improved
  • Moderate annual increases early in the year
  • No further price increases as inflation accelerated
• SmartCraft price adjustements have been below competitors in 2022
  • Room for larger price adjustments in 2023 broadly in line with CPI

Leading position in a less cyclical market segment

Continued operational improvements

Reduced operational risk since the IPO

Very low single customer dependency: 0.01%

(average customer ARR / total ARR)

Very low take rate: 0.2%

of customer's revenue

22

Scalable business model provides strong cash contribution per customer

90% incremental cash contribution per customer after initial acquisition cost

Initiatives to further improve scalability

Well positioned for value enhancing M&A opportunities 9 acquisitions last years

• Dialogue with multiple potential targets in Nordics and new geographies
• Well defined selection criteria
• Capacity for 1-3 acquisition pr year
• Well functional integration model

Unique add-on solutions create opportunities for synergies and cross-sell

Leading quality and safety solution Unique sales tool for electricians Great field tool for electricians

26

Strong balance sheet to support both organic and M&A growth strategies

• Clear plan for disciplined and shareholder friendly capital deployment
• Net cash NOK 177 million
• Ensure firepower to capture opportunities on attractive terms

Dividend and buybacks

No short-term intention to pay dividend

Focus on growth investments Share buy-back program for up to 2% of the share capital

Targeted disciplined approach to industry consolidation Acquisitions

Invest in research & development

Primary focus on scalable solutions across the group

27

Invest in sales & marketing

Very attractive return on sales and marketing investments

We are on track for continued profitable growth!

• Continue to deliver on strategy
• Reduced operational risk
• Consistent strong operational cash flow

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Appendix

High quality international shareholder base

Shareholder ID: Top 20 shareholders	% of total
Valedo Partners III AB	39,70 %
Capital Research Global Investors	7,80 %
B. Ulstein AS	6,60 %
Invesco Advisers, Inc.	5,00 %
Janus Henderson Investors	3,50 %
Handelsbanken Kapitalförvaltning AB	3,00 %
Grandeur Peak Global Advisors, LLC	2,50 %
Highclere International Investors LLP	2,40 %
Carnegie Fonder AB	2,30 %
Swedbank AB	1,80 %
Eaton Vance Management	1,60 %
Allianz Global Investors GmbH	1,30 %
DNCA Investments	1,30 %
Svenska Handelsbanken AB	1,20 %
Line Invest AS	1,20 %
Amundi Asset Management, SAS	1,00 %
Columbia Threadneedle Investments (US)	1,00 %
Tjenssen AS	0,90 %
E.Öhman J:or Fonder AB	0,90 %
Avanza Bank AB	0,90 %

Management and Board ~10% ownership
Nordic and international research coverage
Solid balance sheet with net cash position
Solid track record within M&A and organic investments
The shareholder ID data are provided by Nasdaq OMX. The data are obtained through the analysis of beneficial ownership and fund manager information provided in replies to disclosure of ownership notices issued to all custodians on the SmartCraft
share register. Whilst every reasonable effort is made to verify all data, neither Nasdaq OMX nor SmartCraft can guarantee the accuracy of the analysis.

Key facts

Listed
Oslo Børs, Norway
Market cap
BNOK 3.5 (10 Feb 23)
Free float2
~50%
IPO date
24 June 2021
Reporting interval
Quarterly
Ticker code
SMCRT
Research coverage
ABG Sundal Collier Berenberg
Carnegie
Aksjespararna1
Website
smartcraft.com

¹ Company sponsored

² Shares not held by Valedo and Management/Board

Updated as of 31 January 2023