Q1 2024 report

MAY 7TH, 2024

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-andanswer session that follows the oral presentation (collectively, the "Information"). In accessing the Information, you agree to be bound by the following terms and conditions.

The Information does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase shares or other securities of the Company, and nothing contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever, nor does it constitute a recommendation regarding such shares or other securities. Any shares or other securities of the Company may not be offered or sold in the United States or any other jurisdiction where such a registration would be required unless so registered, or an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended, or other applicable laws and regulations is available. The Information is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. The Information is not for publication, release or distribution in any jurisdiction in which offers or sales would be prohibited by applicable law.

The Information has been prepared by the Company, and no other party accepts any responsibility whatsoever, or makes any representation or warranty, express or implied, for the contents of the Information, including its accuracy, completeness or verification or for any other statement made or purported to be made in connection with the Company and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future.

The Information contains forward-looking statements. All statements other than statements of historical fact included in the Information are forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target", "ambition", "outlook", "believe", "expect", "aim", "intend", "may", "anticipate", "estimate", "plan", "project", "will", "can", "have", "likely", "should", "would", "could" and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future. Furthermore, information about past performance given in this Information is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance.

No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the Information or the opinions contained therein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its parent or subsidiary undertakings or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. The Information has not been independently verified and will not be updated. The Information, including but not limited to forward-looking statements, applies only as of the date of this document and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to the Information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the Information that may result from any change in the Company's expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date of this document.

This presentation contains statistics, data, statements and other information relating to the group's markets and the industry in which it operates. Where such information has been derived from third-party sources, such sources have been identified herein. In addition, the Company has been named as a source for certain market and industry statements included in this presentation. Such "Company information" reflects the Company's views based on one or more sources available to it (some of which are not publicly available, but can be obtained against payment), including data compiled by professional organisations, consultants and analysts and information otherwise obtained from other third party sources.

By reviewing this Information you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the businesses of the Company. This Information must be read in conjunction with the recent financial reports of the Company and the disclosures therein.

This Information shall be governed by Norwegian law, and any disputes relating to hereto is subject to the sole and exclusive jurisdiction of Norwegian courts.

Solid demand in a challenged marked

o Operational and financial highlights
o M&A
o Summary and Q&A

SaaS for SME construction companies

Industry challenges

o 0-5% margins -> High level of bankruptcies
o High level of conflict between construction company and customer
o High level of accidents and deaths
o Increasing demand for documentation and reporting

SmartCraft digital solutions

o Business overview and insight with control of people and material costs
o Digital flow of documentation to avoid conflict
o Safety at your fingertips
o Digital quality assurance to build according to rules and regulations

Renovation is our target segment

Renovation is our target market

o Large market, bigger than new build
o Less volatile, with consistent growth
o Downturn in new build affects the large construction companies, engineers and architects
o In a normal year 3% new build vs 97% existing buildings
o Existing buildings have constant demand for renovation, maintenance and service
o Energy efficiency drives further demand for renovation
o Ongoing digitalization of a digitally immature market

Norwegian construction market by segment, bNOK

Source: Prognosesenteret, 2023

Q1 2024 financial highlights

Continued strong growth, consistently high margins and low churn

Leading position in the Nordics

o Consistent and solid growth before and after the IPO in June 2021
o Constantly gaining market share
o 16 offices in Sweden, Norway, Finland and UK
o ~260 employees incl. latest acquisitions

Good growth in marketing & sales efficiency

o +643% brand exposure¹ (Y/Y) to secure market position
o 18% more inbound leads (YoY)
o 17% more sales meetings (YoY)
o Great focus on the electro industry
- o Attended Sähkö Trade Fair (largest electro gathering Finland)
- o Attended Elektromessen in Norway

Brand exposure for the SmartCraft Group

*1 Visibility of SmartCraft communication in different media channels

Increased organic growth and EBITDA margin in Sweden

o Continued strong demand for Bygglet with +116% booked meetings (YoY)
o Strong organic growth as a result of:
- o Structured sales processes
- o Targeted marketing
- o Increased sales velocity
- o Consistent and high meeting -> sales conversions
o Successful integration to Visma eEkonomi delivering a strong ARR

Still challenging new build market in Finland

o Organic growth -5%
- o Lower activity in new construction projects from existing customers
o Some positive market signals:
- o Revenue from smaller customers +18% YoY in Q1 (Congrid)
- o 92% growth in the number of leads (QoQ )
- o Revenue pipeline strong and on a same level as in Q4
- ^o Digimeter survey 2024: 63% of respondents from 626 companies expect investments to stay the same or increase, only 2% expect a decrease
o Project based revenue model implies a growth tailwind when market turns

Continued positive development in Norway

o Synergetic sales and marketing activities
- o Potential revenue pipeline is strong and at the same level as end of Q4
o Growth hampered by increased downgrades from customers due to a challenged new build market
o Strong focus on partnerships
- o Multiple agreements re-signed
- o Multi-brand package offerings
o Churn is decreasing, implying a growth tailwind when market improves

High growth in recurring revenue as basis for success

o 16% growth in ARR

o 3.3% organic growth quarter-over-quarter
o CPI price increases spread throughout year and implemented at time of contract renewal
o Good performance in new sales
- o Good traction in the market, new sales higher than Q1'23
- o Growth hampered by increased downgrades

Quarterly ARR growth history, mNOK

ARR bridge YoY, mNOK

Continued growth in revenue and strong profitability

o Maintaining high recurring revenue share
o 12% organic growth in annual recurring revenue

o Flexible business model enables positive margin growth both short-term and long-term

R&D capex

mNOK

o New projects in a research phase
o Development of SmartCraft Core and integrations for cross sale and upsales
o Expecting ~9% for FY'24

Solid financial position and strong cash flow

- to support growth strategy and M&A activity

Operating cash flow mNOK, YoY growth

o Tax payments 7 mNOK higher in Q1 2024 compared to Q1 2023
o Cash positive all quarters (seasonally strong Q1)
o YoY cash increase in all quarters
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 Holds 1,93% (~3,3m) shares, per the end of April

Key focus to ensure continued profitable growth Medium-term financial targets remain unchanged

o Customer centric business model
o Continue with marketing and sales excellence to build solid new customer pipeline
o More sales automation & self service
o Use our flexible business model to be prudent on costs
o Value accretive M&A

Margin expected to increase due to scalability of the business

Short-term considerations:

Impact from acquired companies last 12 months

M&A

o Locka acquired 15th April
o Clixifix acquired 2nd May

55 employees + Massive TAM expansion into the UK

Locka Group AB

o Solutions within 3D visualization, customer interaction and after-sales service for construction companies & property developers
o ~21 employees (down from 56 one year ago)
- o The company has synergized the organization and hence has a lean cost base