Volue ASA

Investor Presentation • May 15, 2024

15 May 2024

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

Volue in brief

European industrial software & data leader in the energy transition

Working across three major industry segments

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

Q1 revenues (% of total)	NOK 209 m (52%)
Recurring revenues share (Q1)	76%
EU Taxonomy eligibility	HIGH

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

Q1 revenues (% of total)	NOK 209 m (52%)	Q1 revenues (% of total)	NOK 84 m (21%)	Q1 revenues (% of total)	NOK 66m (16%)
Recurring revenues share (Q1)	76%	Recurring revenues share (Q1)	57%	Recurring revenues share (Q1)	82%
SaaS revenues (Q1)	38%	SaaS revenues (Q1)	10%	SaaS revenues (Q1)	57%
EU Taxonomy eligibility	HIGH	EU Taxonomy eligibility	HIGH	EU Taxonomy eligibility	MEDIUM

Energy¹ Power Grid Infrastructure

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

Q1 revenues (% of total)	NOK 66m (16%)
Recurring revenues share (Q1)	82%
EU Taxonomy eligibility	MEDIUM

⁶ 1. From Q3 2023 Volue IIoT is reported under «other segment» (see appendix slide 33)

Highlights for the Quarter

Recurring revenues

NOK 284 mill

27% growth from Q1 2023 18% growth from Q1 2023

Operating revenues

NOK 400 mill

SaaS revenues

NOK 126 mill

42% growth from Q1 2023

Adjusted EBITDA

NOK 83 mill

21% margin, Up from 16% Q1 2023

Q1 Highlights: Continued ARR and SaaS momentum

Performance, sales and operations

• Operating revenues growing 18%
• Strong sales of Volue Energy Market Services (VEMS) platform for solar and wind assets
• The Insight product line won 25 new customers from 14 different countries in Q1, expanding upsell pipeline
• Infrastructure continues yielding benefits from business model transformation with top-line growth of 22%
• Organic growth at 10% impacted by shift away from non-ARR, with momentum in ARR and SaaS boosting robust revenue streams
• Profitability improves in line with guidance
• Net Retention Rate (NRR) disclosed, demonstrating Volue's inherent platform for growth

Adjusted EBITDA and other alternative performance measures (APMs) are defined as part of the APM section in this presentation on page 36.

Business transformation – Volue Energy Market Services (VEMS)

• SaaS success from Infrastructure segment brings confidence in business model transformation
• Increasing ARR and profitability is core priority
• Bringing uplift in profitability through streamlining the product line, with shortterm growth and profit impact

5

Fast-growing and profitable model with highly attractive growth strategy

Robust foundation providing long cash flows & churn protection (< 2%)

1

Building SaaS revenues with goto-market strategy. 196% growth since listing

2

Solid and growing European position with Iberian stronghold

3

Large and fastgrowing markets. 20 billion NOK today, doubling in size towards 2030

4

Perfect position for profitable growth and business model transformation, with proven ability to execute. ARR base at 1,213 million NOK

Robust foundation providing long cash flows & churn protection 1

• Mission critical solutions
• Decades of proven reliability
• Longstanding relationships with conservative customers

A

Highly attractive vendor position

Battle proven portfolio

• Sticky customer base with high switching cost
• Volue on the right side of the fence with industry titans

• Robust ARR foundation Predictable recurring revenue stream from current solutions
  • Industry low customer churn below 2%

1 Robust foundation and churn protection: Customer effect from Smart Power optimisation

Building SaaS revenues with go-to-market strategy 2

Go-to-market model in the Energy segment Strong customer relationships and proven platform

13

High customer loyalty and satisfaction, providing predictable revenue streams

Significant inherent cross- and upselling opportunities

Virtually zero churn, with merges and bankruptcies the main churn generators

Large share of SaaS products sold to legacy customers

Growing European position with Iberian stronghold 3

Demonstrating Volue's ability to execute on growth strategy

Large and fast-growing markets 4

Markets set to double to NOK 40 billion ARR towards 2030

Installed renewable capacity growing with a CAGR of 10%

Number of power producers growing with a CAGR of 6%

Fuelled by global electrification megatrend

Attractive current market size of NOK 20 billion ARR

Million algo trades

'24

Perfect position for profitable growth and business model transformation, with proven ability to execute 5

'24

'24

16

892

First Quarter 2024 Financial Results

Financial highlights

Financial highlights (NOKm)	Q1 2024	Q1 2023	2023	LTM
Operating revenues	400	339	1,464	1,525
Adjusted EBITDA1	83	55	267	295
Adjusted EBITDA margin	21%	16%	18%	19%
EBITDA	72	46	208	234
EBITDA margin	18%	14%	14%	15%
Recurring revenues growth (%) Recurring revenues (% of	27%	21%	29%	30%
revenues)	71%	66%	67%	69%
SaaS revenues growth (%)	42%	34%	41%	43%
SaaS revenues (% of revenues)	31%	26%	27%	29%
R&D CAPEX (% of revenues)	10%	11%	10%	10%

Sales

• Strong underlying financial performance with growth for all segments
• 18% revenue growth from Q1 2023, 10% organic growth
• ARR and SaaS increasing at the expense of non-ARR, as targeted
• Strong sales closing in the quarter, with solid Net Retention Rate (NRR)

Profitability

• Adjusted EBITDA in Q1 2024 improved from Q1 2023, mainly driven by a more stable cost base and growth in scalable products
• Margin has improved in the quarter, despite shortfall in nonrecurring revenues with high profit margins
• Growth in ARR, SaaS in particular, paves way for further profitability improvement
• Non-recurring items in line with Q1 23

Capex

• Capex in line with expectations

Cash flow

• Net working capital release following pre-payments of recurring revenues in Q1

Excellent growth in annual recurring revenues (ARR)

Annual Recurring Revenues1 Annual SaaS Revenues2

Accelerating shift towards SaaS

0%

10%

20%

30%

40%

50%

60%

1. Recurring revenues are defined as revenues from recurring contracts including Software-as-a-Service (SaaS)

300

19

400

500

600

700

800

900

1,000

1,100

0.0 %

0.5 %

1.0 %

1.5 %

2.0 %

2.5 %

3.0 %

Expanding ARR base

+31% Annualised recurring revenues basis1 mNOK 197 223 ²⁰⁰²²⁹ 433 664 96 96 Q1 2023 Q1 2024 Infrastructure Power Grid Energy Other segment 926 1 213

20 1. Annualised recurring revenues basis is the yearly value of recurring contracts, delivered and not delivered

And highly sticky customer base

Customers stay with Volue

-

5

10

15

20

25

30

1. Note that changes have been made in the calculation of churn, ref . APM on page 36. In previous reports this has been reported as ARR contribution of lost customers divided by total revenues last twelve months, and we have included figures calculated using this method in paratheses for comparison.

2. Please note that we have improved our churn data with effect from 01.01.2024. For previous years, the reported churn are affected by some down sell numbers (lost ARR contribution of existing customers).

NRR Q1 – Powerful first quarter

*Excluding Other segments (Scanmatic AS).

NRR and other alternative performance measures (APMs) are defined as part of the APM section in this presentation on page 36.

NRR – Net Retention Rate

• NRR shown only covers Q1 2024.
• Total MRR (Monthly Recurring Revenue), is the sum of the delivered contracts to customers.
• New sell and upsell includes what is delivered in the period.
• Main share of contracts are yearly renewed January 1st. Price increase, which consists of both CPI and additional extra ordinary price increases will therefore primarily have effect on Q1. The same apply for churn and down sell.
• Due to the nature of contract renewals, Q1 will typically have a higher NRR than Q2, Q3 and Q4.
• Annual amounts are only an indication of MRR on annual basis.

New sell: New ARR to new customers, included when delivered Upsell: Additional ARR to existing customers, included when delivered Price increase: Contractual adjustments and extra ordinary price increases Churn: loss of customers canceling contracts, compared to previous period Down sell: reduction of contracts, compared to previous period

Historical Net Retention Rate (NRR)

	Energy	Power Grid	Infrastructure	Volue Group
2023	120%	113%	114%	117%
2022	106%	106%	113%	108%
2021	108%	104%	119%	109%

Energy segment

From Q3 IIoT is reported under «other segment» (see appendix slide 31)

Growth

• Segment with 26% growth and 7% organic growth from Q1 23
• Organic uplift in ARR and SaaS of 20% and 24% respectively compared to Q1 23
• Non-recurring revenues from Energy Market Services decreasing approximately 14MNOK vs Q1 23
• Strong ARR growth offsetting non-ARR decline, building a more resilient revenue base and profitability over time
• Strong sales due to increased demand for forecast and analytics services

Profitability in the quarter

• Adjusted EBITDA at 20% in Q1 24, compared to 26% Q1 23, with negative impact from less non-recurring revenues
• Enerim integration and business model transformation progressing according to plan
• Strategic investment in the segment, scaling for long-term growth and impacting margins

Main drivers for uplift in contribution going forward

• Sales closing mainly from scalable SaaS products within Trading and Insight, giving uplift in contribution without adding new cost
• Few new headcounts planned to be added throughout 2024
• Synergies on cost level through more integrated product lines that reduce OPEX level
• Significant growth in ARR base that will give uplift in 2024 revenues

Investments

• CAPEX at 7% of revenues in the quarter, mainly R&D investments
• Significant investments into new products related to Optimisation and Trading Solutions

Power Grid Segment

Growth

• 9% growth compared to Q1 23 from strong sales
• Service delivery capacity increased, enabling further growth
• Solid market outlook with large pipeline

Profitability in the quarter

• Adjusted EBITDA margin at 22% in the first quarter the strongest since Q2 21
• Strong consultancy and project delivery in the quarter
• Investments in market expansions with new products for European markets continue to impact margins in the quarter

Main drivers for uplift in contribution going forward

• Mid- to long-term increased contribution following sale of scalable products from the Spark program
• Current team scaled to capture growth
• Shift in business models and growth on top line on scalable SaaS products
• Uplift in contribution from improved profitability in consulting activities

Investments

• CAPEX in the quarter at 16% of revenues, somewhat higher than expectation for the short-term
• Ongoing investments in international expansion

Infrastructure Segment

Growth

• Continued growth momentum at 22% compared with Q1 2023
• Organic growth rate at 24%, accounting for Fire & Chimney product line divestment in 2023
• Successful shift in business models 82 % ARR and 57% SaaS in the first quarter of 2024
• Strong sales in 2023, giving increased order backlog, positively impact growth rates going forward

Profitability

• Improved margins from Q1 2023 following uplift in ARR and SaaS
• Ongoing investments in market expansions impacting EBITDA margins

Main drivers for uplift in contribution going forward

• Strong growth in sales closing on SaaS platform will drive uplift in margins with main investments completed
• Current team scaled to capture growth
• Improved time-to-cash process will provide margin uplift

Investments

• CAPEX level at 17% of revenues for the quarter, expected to decrease in the short- to mid-term

Guidance

Classification: Private

Update on guidance

Annual long-term organic growth of 15% reiterated

Active M&A agenda with

1-2 deals per year

Year-by-year increase of adjusted EBITDA margin, cash conversion, share of ARR and SaaS revenues

Appendix Financial and Operational Information

Group P&L and KPIs

Group financial performance

Key metrics (NOKm)	Q1 2024	Q1 2023	LTM	2023
Operating revenues	400	339	1,525	1,464
COGS	61	50	212	201
Gross profit	339	289	1,313	1,263
Gross margin %	85%	85%	86%	86%
Personnel expenses (excl. capitalised R&D)	194	180	744	730
Other OPEX	62	55	274	267
Adjusted EBITDA	83	55	295	266
Adjusted EBITDA margin %	21%	16%	19%	18%
Non-recurring items	11	8	61	58
EBITDA	72	46	234	208
EBITDA margin %	18%	14%	15%	14%
Depreciation and amortisation	43	23	148	128
EBIT	29	24	86	80
EBIT margin %	7%	7%	6%	5%
Net financial items	-5	1	-23	-17
EBT	24	25	63	63
Tax	7	6	29	27
Profit (loss)	17	19	34	36

Balance sheet

Balance sheet (NOKm)	Q1 2024	Q1 2023	2023	Balance sheet (NOKm)	Q1 2024	Q1 2023	2023
ASSETS				LIABILITIES AND EQUITY
Property, plant and equipment	166	122	155	Equity	901	840	850
Intangible assets	1,145	665	1,102	Total Equity	901	840	850
Pension assets	8	6	7
Non-current receivables and
investments	48	37	48	Non-current loan	192	0	342
Total non-current assets	1,367	830	1,1312	Lease liabilities	113	74	105
				Other non-current liabilities	15	11	15
				Deferred tax liabilities	67	17	70
				Total non - current liabilities	387	102	532
				Borrowings	0	5	76
				Lease liabilities	26	20	24
Inventory	33	28	30	Trade and other payables	87	112	248
Contract assets	98	68	59	Current tax liabilities	49	34	50
Trade and other receivables	464	531	548	Contract liabilities	381	319	20
Cash and cash equivalents	349	534	178	Other current liabilities	480	560	327
Total current assets	944	1,162	815	Total current liabilities 1,023		1,050	745
Total assets	2,311	1,992	2,127	Total liabilities and equity 2,311 1,992		2,127

Cash flow statement

33

Cash flow statement (NOKm)	31.03.2024	31.03.2023
Profit before tax	24	25
Adjusted for depreciations	43	23
Net finance	5	-1
Change in inventories	-4	1
Change in other current assets	45	2
Change in other current liabilities	355	160
Change in other provisions	1	1
Change in tax paid	-15	-7
Net cash flow from operating activities	454	204
Interest received	3	2
Purchase of property, plant and intangible assets	-59	-42
Payment for acquisition of subsidiary, net of cash acquired	-	-85
Proceeds from the sales of shares in subsidiaries	-	-10
Net cash flow from investing activities	-56	-135
Movement in short time borrowings		3
Interest paid	-3	-8
Repayment of long-term borrowings	-154	-
Net change in bank overdraft	-76	-
Net cash flow from financing activities	-233	-5
Net change in cash and cash equivalents	165	64
Cash and cash equivalents opening balance	178	446
Effects of exchange rate changes on cash and cash equivalents	6	24
Cash and cash equivalents closing balance	349	534

Segment overview

34

Energy Segment (NOKm)	Q1 2024	Q1 2023	2023	LTM
Operating revenues	209	165	744	788
Adjusted EBITDA	42	43	169	168
Adjusted EBITDA margin	20%	26%	23%	21%
R&D CAPEX (% of revenues)	7%	11%	7%	6%
Power Grid Segment (NOKm)	Q1 2024	Q1 2023	2023	LTM
Operating revenues	84	76	323	330
Adjusted EBITDA	18	11	50	57
Adjusted EBITDA margin	22%	14%	15%	17%
R&D CAPEX (% of revenues)	16%	15%	12%	12%
Infrastructure Segment (NOKm)	Q1 2024	Q1 2023	2023	LTM
Operating revenues	66	54	244	256
Adjusted EBITDA	16	3	45	58
Adjusted EBITDA margin	25%	5%	18%	23%
R&D CAPEX (% of revenues)	17%	12%	12%	14%
Other Segment (NOKm)	Q1 2024	Q1 2023	2023	LTM
Operating revenues	42	44	153	151
Adjusted EBITDA	6	-2	3	11
Adjusted EBITDA margin	14%	-5%	2%	8%

Revenue splits within segments, Q1 2024

% of segment revenue	Energy	Power Grid	Infrastructure	Other Segment
Total ARR	76 %	57 %	82 %	57 %
of which is SaaS	38 %	10 %	57 %	0 %
License fee	2 %	1 %	0 %	0 %
Consulting	13 %	37 %	15 %	0 %
Energy Market Operations	9 %	0 %	0 %	0 %
Other Revenue non-recurring	1 %	5 %	2 %	43 %

Volue Energy Market Services (VEMS) undergoing business model transformation

Building on the platform acquired with Enerim, VEMS is undergoing a business model transformation, targeting ARR. In combination with softer volatility markets, this impacts short-term revenues and profitability for the business line.

Power Grid displays continued strong consultancy performance

Infrastructure keeps momentum in ARR and SaaS

Alternative performance measures (APMs)

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.

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:

Adjusted EBITDA - In order to give a better representation of underlying performance, EBITDA is adjusted with non-recurring items.

ARR – Annual Recurring Revenues is defined as revenues from recurring contracts including software as a service. Includes also elements of reoccurring revenue, for Scanmatic that is reported under Other segments.

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

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

36

SaaS – Software as a service. SaaS revenues are defined as revenues from software & services operated by Volue in the cloud.

NRR – Net retention rate. Monthly recurring revenue (MRR) at the end of the period excluded new sell and acquired MRR, divided by MRR at the end of last period.

Churn –defined as ARR contribution of lost customers divided by reported ARR over the last twelve months (note that this is changed from Q1 2024).

Non-recurring items - items that are not part of the ordinary business, such as external costs related to implementation of corporate backoffice cloud-based systems (e.g. ERP), M&A related costs and costs related to the share-based remuneration schemes. In accordance with IFRS IC agenda decision (Configuration or Customisation Costs in a Cloud Computing Arrangement) from April 2021, these costs have not been capitalised, as they previously would have been.