Volue ASA

Investor Presentation • Aug 20, 2021

Second Quarter 2021 Financial Results

20 August 2021

Disclaimer

This presentation has been produced by Volue ASA (the "Company" or "Volue") exclusively for information purposes. This presentation is confidential and may not be reproduced or redistributed, in whole or in part, or disclosed by any recipient, to any other person. To the best of the knowledge of the Company and its board of directors, the information contained in this presentation is in all material respect in accordance with the facts as of the date hereof, and contains no material omissions likely to affect its import.

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CEO CFO

Trond Straume Arnstein Kjesbu

Q2 Highlights: Volue on-track for 2025 targets

Revenues NOK 233 million 18% growth adjusted for cyber-incident, from Q2 2020 (8% reported) Financial results Adjusted EBITDA NOK 57 million 24 % margin, improved from Q2 2020 SaaS revenues NOK 53 million 51 % growth from Q2 2020 Recurring revenues NOK 162 million 17 % growth from Q2 2020

Performance, sales and operations

• Strong financial performance, despite cyberincident, with good underlying growth
• No loss in recurring revenues from cyber-incident, but one-off losses in revenues on approximately 25 MNOK
• Very strong sales closing, with 700 smaller and larger sales closed in Q2
• Closed three larger international contracts in the Energy segment
• Strong growth in ARR on 17%, with an increased SaaS growth
• Strong market outlook

Subsequent events

• Acquisition of Procom GmbH in Germany

Volue: Realising the future of energy

Watch video here

Robust and scalable Volue platform

120 TRILLION data points collected from sensors annually WEATHER DATA

650 BILLION API calls to 150K price curves MARKET INSIGHT

each year

315 TWh ENERGY PRODUCTION

power volumes optimised per annum

Volue in brief: A leading supplier of software and technology solutions for the energy, power grid and infrastructure markets

Brief overview of Volue, one of the largest software companies in Norway

The Volue market segments: Working across three major industry segments

Help customers master the energy transition by enabling end-to-end optimisation of the green energy value-chain

2021 sales (% of total)	267NOK m (55%)
Recurring revenue share (2021)	65 %
Degree of EU Taxonomy alignment	HIGH

Enable power distributors to support electrification of society by unlocking flexibility and digital management of the power grid

2021 sales (% of total)	NOK 123m (25%)
Recurring revenue share (2021)	55%
Degree of EU Taxonomy alignment	HIGH

Energy Power Grid Infastructure

Deliver flexible capabilities for digital water management and help automate processes and machines for the construction industry

2021 sales (% of total)	NOK 98m (20%)
Recurring revenue share (2021)	73%
Degree of EU Taxonomy alignment	HIGH

Highlights for the Quarter

Acquisition of Procom: Increased market presence in Europe

About Procom

Founded in 1977

• Family-owned business headquartered in Aachen Germany
• Strong base of recurring revenues with highly sticky customer base
• Market leader for optimisation in the DACH region

Core services & products

• Power generation optimisation
• Forecasting solutions
• Trading of power, heat, gas, and CO2
• Portfolio optimisation

Procom in numbers

> 40 years of Energy operations
> 60 employees
	> 3 MEUR in ARR
	> 60 production accounts

New member of the Volue family - ProCom: Strategic rationale for acquisition

Strengthen market position in Europe

Acquisition further strengthens Volue's offering within optimalisation solution for power producers in Europe

Consolidating fragmented energy technology market

Volue takes active role in a muchneeded consolidation of energy technology market, with a goal of helping customers accelerate shift to renewable energy

Increased customer base and uplift in ARR level

60+ clients in DACH region with a strong recurring revenue base. Attractive financial position for further growth and upsell on Volue products

Sales closing in Q2: Strong performance in challenging quarter

700 sales closed

High activity, despite cyberincident, with more than 700 sales cases sold in the quarter.

New large customer in Italy

Strategic contract with the second largest power producer in Italy

Statkraft to cloud

Volue provides Statkraft with Software-as-a-Service for Trading Operations

Growing international footprint

Strong sales outside the Nordic are increasing Volue's footprint and strengthen ambition to become a global player

Cyber-incident

Cybercrime Facts and Figures

\$ 1.5

trillion

1,5 trillion USD is the

estimated annual

revenue from cybercrime

– that's three times

bigger than Walmart.

Ransomware attacks performed every eight minutes

Especially infrastructurecritical companies and organizations are targeted.

Praise from Customers & Security Community

…But We Will Build Back Better

Network security improvements

Stronger governance over resources

Removing old infrastructure

Disaster recovery

Development tool modernisation

More tools and environments in the cloud

Second Quarter 2021 Financial Results

Financial highlights

Financial highlights (NOKm)	Q2 2021	Q2 2020	YTD 2021	YTD 2020	LTM
Revenue	233	217	489	443	938
Gross margin	84%	83%	84%	85%	82%
Adjusted EBITDA1	57	52	109	92	213
Adjusted EBITDA margin	24%	24%	22%	21%	23%
EBITDA	14	39	56	79	126
EBITDA margin	6%	18%	11%	18%	13%
Cash balance at the end of the period2	484	347	484	594	484
Recurring revenue growth (%)	17 %	10 %	19 %	9 %	16 %
Recurring revenue (% of revenue)	69 %	63 %	67 %	62 %	66 %
SaaS revenue growth (%)	51 %	33 %	50 %	33 %	40 %
SaaS revenue (% of revenue)	22 %	16 %	20 %	15 %	19 %
R&D CAPEX (NOKm)	23	21	49	41	92
R&D CAPEX (% of revenue)	10%	10 %	10 %	9 %	10%

Comments

• Strong underlying financial performance in a challenging quarter
  • 18% growth from Q2 2020 adjusted for the cyberincident (8% reported)
  • Strong growth in recurring revenues at 17%, with a growth SaaS revenues on 51% from Q2 2020
  • Strong growth contribution from the Energy segment with 26% growth in Q2, adjusted for cyberincident, with increasing foothold in Europe as main growth factor
  • Power Grid segment with strong growth at 14%, adjusted for cyber-incident, driven by strong sales on software solutions and project deliveries
  • Growth from Infrastructure area with 7%, adjusted for cyber-incident, and strong sales in ARR
• Adjusted EBITDA margin in Q2 improved from Q2-2020
  • The company has recognised one-off cost related to the cyber-incident at NOK 40 million
  • Cost related to IPO partly included in Q2 results

• R&D capitalisation stable around ~10%

1 EBITDA adjusted for non-recurring items. Note that adjusted EBITDA does not include estimated one-off loss of revenue due to the cyber-incident.

Strong growth in annual recurring revenues (ARR)

1 Recurring revenues is defined as revenues from recurring contracts including software as a service 2 SaaS revenue is defined as revenue from software hosted by Volue and distributed through web applications

Accelerating shift towards SaaS

1 Recurring revenues is defined as revenues from recurring contracts including software as a service 2 SaaS revenue is defined as revenue from software hosted by Volue and distributed through web applications

0

20

40

60

80

100

120

140

160

180

200

Strong growth in ARR base and highly sticky customer base

Cyber-incident - Financial impact

Revenue impact of NOK 25 million

• One-off revenues related to services
• No impact on recurring revenues
• Expect no impact on revenues after Q2

23

One-off related expenses of NOK 40 million in the quarter

• External cost directly related to the incident on NOK 6 million
• Internal cost on rebuild on NOK 34 million

Insurance

• Insurance that cover part of the amount, but not booked in Q2 figures
• Insurance cap on 20 MNOK

Industry Developments and Strategy

Cleaner energy pressuring the infrastructure

Software spending from the power sector to reach USD 5bn by 2025 (up 60% vs. today), fueled by the green energy shift

10% growth in global power sector software spending p.a.1

Growth drivers

Increased renewable capacity and shifting wholesale market dynamics, resulting in increased power market complexity

Expected growth in power software spending, requires additional hardware, implementation and services, driving total digitalisation costs to 2x power software spending

Solutions within advanced analytics, artificial intelligence and optimisation growing the most

Europe is at the forefront of power digitalisation, with 25% share of global spending

Growing share of green, non-controllable power sources increases the complexity in the European energy markets

Non-controllable power will represent more than 50% of European power capacity…

…making the process to optimise production and trading exponentially more complex

Increase in non-controllable production sources,

27

Few and expensive storage or switch-off alternatives

with production changing in seconds Real-time decision making requires new software tools >

Example from the new reality: Penalties paid in the balancing market can be extreme if failing to re-position in the intraday market

Volue enabling customer success

Software, markets insights and IoT technology covering entire value-chain

Analyse		Plan & Operate		Monetise
CAPTURE AGGREGATE	FORECAST	OPTIMISE SCHEDULE		TRADE SETTLE
IIoT - Sensor data capturing & aggregation Hydrology Meteorology Environment	Forecasting Inflow & Demand	Market data & forecasts on capacity, fundamentals and prices: Long- Long & short-term production planning & optimisation Multi-purpose technologies	Trading Intraday algo trading Position mgmt	and short-term (power & gas) Spot auction bidding (on the roadmap) Ancillary service bidding & activation request & scheduling (power and gas)	Settlement Nordic Balance Settlement
Portfolio management as a Service
			Industrial IoT	Market insights Energy software	Market services

Volue offers a comprehensive product and service portfolio, covering the entire clean energy value-chain

Significantly simplifying access and interaction for all stakeholders

Services are mainly delivered on a cloud platform, underlining fact that the SaaS transformation is well underway

Addressing the shared customer segment across Volue's business units - opens significant cross-sales opportunities

Large international client base a testament to Volue's high-quality offering

Recent significant strategic contract wins

SaaS-platform to Statkraft

Q2 2021

Second largest power producer in Italy

Q2 2021

Significant value-creation potential demonstrated for customers adopting business-criticalsolutions from Volue

Outlook & Priorities

Summary: Solid position for profitable growth and expansion

The shift towards green, non-controllable energy sources drives increased volatility and complexity for customers, requiring dynamic and cloudbased software solutions

3

2

1 Volue offers wall-to-wall SaaS solutions and has built up a customer base comprising the leading European energy companies

Ongoing SaaS-transformation with solid growth in recurring revenues and an uptick in EBITDA margins

Reiterating ambitions to create a NOK 2 billion revenue company by 2025

Mid to long-term ambitions M&A strategy

Highly fragmented market – Volue aims to pursue consolidation

Ambitions to act as a consolidator and engage in bolt-on transactions on a recurring basis as well as pursue larger strategic options in a more opportunistic manner

On track to create a NOK 2 billion revenue company by 2025 - priorities and ambitions

Short term financial guidance discontinued following cyberincident, but strong underlying performance

Accelerate growth in ARR through SaaS transformation

Structural growth – Take lead position in market consolidation Utilise synergies in Volue group to increase operational efficiency

Group P&L and KPIs

Group financial performance Comments

Key metrics (NOKm)	Q2 2021	Q2 2020	YTD 2021	YTD 2020	LTM
Revenue	233	217	489	443	938
COGS	37	36	78	68	168
Gross profit	196	181	411	375	770
Gross margin %	84%	83%	84%	85 %	82 %
Personnel expenses (excl. capitalised R&D)	87	98	211	215	419
Other OPEX	52	31	91	68	138
Adj EBITDA	57	52	109	92	213
Adjusted EBITDA margin %	24%	24%	22%	21 %	23 %
Non-recurring items	43	14	52	14	87
EBITDA	14	39	56	79	126
EBITDA margin %	6%	18%	11%	18 %	13 %
Depreciation and amortization	25	15	46	31	81
EBIT	-11	24	10	48	45
EBIT margin %	-5%	11%	2%	11 %	5 %
Net Finance	1	(4)	1	-1	-5
EBT	-10	20	11	47	40
Tax	-5	4	2	6	16
Profit (loss) continued operations	-5	16	10	41	24
Profit/loss from discontinued operations1	0	5	0	6	32
Net profit/loss	-5	21	10	47	56

• Strong underlying financial performance in a challenging quarter
  • 18% growth from Q2 2020, adjusted for the cyberincident (8% reported)
  • Strong growth in recurring revenues at 17%, with a growth SaaS revenues on 51% from Q2 2020
  • Strong growth contribution from the Energy segment with 26% growth in Q2, adjusted for cyber-incident, with increasing foothold in Europe as main growth factor
  • Power Grid segment with strong growth at 13%, adjusted for cyber-incident, driven by strong sales on software solutions and project deliveries
  • Growth from Infrastructure area with 5%, adjusted for cyber-incident, and strong sales of ARR
• Adjusted EBITDA margin in Q2 improved from Q2-2020
  • The company has recognised one-off cost related to the cyber-incident at NOK 40 million
  • Cost related to IPO partly included in Q2 results
• R&D capitalisation stable around ~10%

Balance sheet

Balance sheet

ASSETS				LIABILITIES AND EQUITY
Pension assets Non-current receivables and	15	16	15
Assets connected to discontinued
operations	0	0	121

Balance sheet (NOKm)	Q2 2021	Q1 2021	Q2 2020	Balance sheet (NOKm)	Q2 2021	Q1 2021	Q2 2020
ASSETS				LIABILITIES AND EQUITY
Property, plant and equipment	162	148	97	Equity	743	742	435
Intangible assets	482	468	264	Total Equity	743	742	435
Pension assets Non-current receivables and	15	16	15
investments	32	32	0	Lease liabilities	105	105	72
Deferred tax assets	16	12	7	Other non-current liabilities	15	38	9
Total non -current assets	707	676	383	Deferred tax liabilities	36	39	15
				Total non - current liabilities	156	182	96
				Borrowings	7	2	2
Inventory	21	21	15	Lease liabilities	31	20	22
Contract assets	53	61	97	Trade and other payables	45	61	199
Trade and other receivables	233	244	172	Current tax liabilities	5	8	4
Financial Investments	0	10	10	Contract liabilities	170	259	153
Cash and cash equivalents Assets connected to discontinued	484	594	347	Other current liabilities Liabilities connected to discontinued	341	332	151
operations	0	0	121	operations	0	0	84
Total current assets	791	929	762	Total current liabilities	599	681	614
Total assets	1,498	1,605	1,145	Total liabilities and equity	1,498	1,605	1,145

Cash flow statement

Cash flow statement (NOKm)	30.06.2021	30.06.2020
Profit before tax from continuing operations	11	47
Depreciations	46	31
Net finance	-1	1
Change in current assets	43	14
Change in current liabilities	32	102
Change in other operating items	0	3
Change in tax paid	-10	-10
Net cash flow from operating activities	121	188
Interest received	1	6
Purchase of property, plant and intangible assets	-59	-45
Proceeds from sale of investments	10	1
Net cash flow from investing activities	-48	-38
Proceeds from issue of shares	0	27
Movement in short terms borrowings	-16	-56
Interest paid	-6	-8
Dividend paid	0	-3
Acquisition of non-controlling interests	-5	0
Net cash flow from financing activities	-26	-40
Net change in cash and cash equivalents	47	110
Cash and cash equivalents opening balance	434	233
Effects of exchange rate changes on cash and cash
equivalents	4	4
Cash and cash equivalents closing balance	484	347

Energy

Key financials and KPIs Comments

Growth

• Energy segment with strong growth on 26%, adjusted for cyber-incident (19% reported)
• European expansion the main driver for growth with increasing portion towards SaaS-offerings Strong sales in the period - with insight portfolio growing significantly in Europe
• Three major contract signed in the period, but no financial impact in the quarter
• Likron included in figures
• Solid backlog from several major customer wins

Profitability

• Decrease in adjusted EBITDA margin due to increased investments for market expansion.
• Non-recurring items related to Cyber-incident with 7 MNOK in the quarter
• Further SaaS products gives uplift in EBITDA level throughout Q2. Large increase in capacity in 2021 for further investments in new product and services

CAPEX

• CAPEX level at ~12 % of sales, mainly constituted by R&D investments
• Significant investments into new products related to optimisation and

Power Grid

Key financials and KPIs Comments

Growth

• Grid segment with strong growth on 14%, adjusted for cyber-incident (-7% reported)
• Strong sales in Q2 gives further uplift in ARR revenues.
• Good growth in home market, with large ongoing project in Norwegian home market

Profitability

• Decrease in adjusted EBITDA margin due to increased investments in new resources for market expansion.
• Non-recurring items related to Cyber-incident with 13 MNOK in the quarter
• Negative contribution from one large project impacting development in 2020, no negative impact in Q2
• Investments in market expansions with new products for an European markets

CAPEX

• CAPEX at ~8 % of sales
• Ongoing investments in flexibility products
• CAPEX level expected to increase over the next 12 months

Infrastructure

Key financials and KPIs Comments

Growth

• Infrastructure segment with good growth on 7%, adjusted for cyberincident (-3% reported)
• Strong growth in recurring revenues from Q1 2020
• Slowdown in the Swedish construction market due to postponed contract following from Covid-19
• Strong home market in Norway

Profitability

• Adjusted EBITDA margins increased following lower cost
• Non-recurring items related to Cyber-incident with 5 MNOK in the quarter
• Profitability supported by scalable business models and easy onboarding processes

CAPEX

• CAPEX level at ~11 % of sales, expected to stay at same levels near-term
• Ongoing investments to increase offerings on Gemini platform and additions to the current product range
• All investments directed towards SaaS offerings

Alternative performance measures

Basis for preparation

This presentation provides financial highlights for the quarter for Volue. The financial information is not reported according to the requirements in IAS 34 and the figures are not audited.

Alternative performance measures

Volue ASA presents alternative performance measures as a supplement to measures regulated by IFRS. The alternative performance measures are presented to provide better insight and understanding of operations, financial position and the basis for future developments.

The definitions of these measures are as follows:

EBITDA - Profit/loss before tax, net finance cost, depreciation, amortization and impairment.

EBIT - Profit/loss before tax and net finance cost.

Equity ratio - Total equity divided by total assets.

ARR – Annual Recurring Revenue

EBITDA adjusted - In order to give a better representation of underlying performance, the following adjustments are made to EBITDA:

• Special items: items that are not part of the ordinary business, such as IPO related costs and costs related to the cyber-incident. Note that adjusted EBITDA does not include estimated one-off loss of revenues due to the cyber-incident.

Net interest-bearing debt - Total interest-bearing debt, less interestbearing receivables and cash.

SaaS – Software as a service

Revenue growth adjusted for cyber-

incident - The growth in revenue from a previous period, after adjusting the 2021 numbers for estimated revenue loss from the cyber-incident.