Volue ASA

Investor Presentation • Feb 9, 2024

Fourth Quarter 2023 Financial Results

9 February 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.

This presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and its subsidiaries and/or the industry in which the Company operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Neither the Company nor any of its subsidiaries or any such person's officers or employees provides any assurance that the assumptions underlying such forwardlooking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to any actual results.

An investment in the Company involves risk, and several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this presentation, including, among others, risks or uncertainties associated with the Company's business, segments, development, growth management, market acceptance and relations with customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors.

Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation.

The information in this presentation speaks as of the date hereof. The Company does not intend, and does not assume any obligation, to update or correct the information included in this presentation. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its subsidiaries or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. By attending or receiving this presentation 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 Company's business.

The contents of this presentation shall not be construed as legal, business or tax advice, and the furnishing of this presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisers. Prospective investors should consult its own legal, business or tax advisor as to legal, business or tax advice.

This presentation has been prepared for information purposes only, and does not constitute or form part of, and should not be construed as, any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity.

This presentation is subject to Norwegian law and any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo district court as legal venue.

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

Q4 revenues (% of total)	NOK 211 m (51%)
Recurring revenues share (Q4)	70%
EU Taxonomy eligibility	HIGH

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

Q4 revenues (% of total)	NOK 211 m (51%)	Q4 revenues (% of total)	NOK 91 m (22%)	Q4 revenues (% of total)	NOK 71m (17%)
Recurring revenues share (Q4)	70%	Recurring revenues share (Q4)	56%	Recurring revenues share (Q4)	70%
SaaS revenues (Q4)	34%	SaaS revenues (Q4)	9%	SaaS revenues (Q4)	38%
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

Q4 revenues (% of total)	NOK 71m (17%)
Recurring revenues share (Q4)	70%
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 272 mill

29% growth from Q4 2022 21% growth from Q4 2022

Operating revenues

NOK 413 mill

SaaS revenues

NOK 106 mill

35% growth from Q4 2022

Adjusted EBITDA

NOK 86 mill

21% margin, Up from 19% Q4 2022

Q4 Highlights: Another record quarter

Performance, sales and operations

• Record operating revenues in the quarter, breaking the 400 million barrier
• Annualised ARR base reached 1,138 million in the quarter, adding to Volue's robust base
• Previously guided head-winds in Market Services revenues compared to last year, countered by strong project delivery and advisory services
• Smart Power gone live with two major producers in Italy, making Volue unrivalled in the country
• Legal dispute originating from 2021 resolved in Q4, see details on slide 22
• Enerim integration progressing according to plan, providing platform for growth and now handles more than 70TWh under asset management

Adjusted EBITDA and other alternative performance measures (APMs) are defined as part of the APM section in this presentation on page 35.

Market update

Energy

Smart Power signed significant customers in the Spanish growth market, the new Japanese market and the Nordic home market during Q4 '23

Infrastructure

90 customers reached in Sweden by Construction product line

Infrastructure

100 new logos won in 2023

Power Grid

Power Grid closed ARR for 26MNOK in 2023

Energy

Insight closed 369 deals in 2023

Power Grid

The Spark ecosystem has attracted 16 smart charging service providers and four grid operators, introducing incentives for grid-aware behaviour

Infrastructure

Increased confidence in global scalability, with customers in eight countries through incoming request

Recurring revenues

NOK 984 mill

Operating revenues

NOK 1463 mill

29% growth from 2022 20% growth from 2022

SaaS revenues

NOK 397 mill

41% growth from 2022 18% margin

Adjusted EBITDA

NOK 267 mill

2023 Highlights: On track for 2025 ambitions

Performance, sales and operations

• Strong growth trajectory on SaaS, ARR and operating revenues
• Adjusted EBITDA uplift in accordance with guidance
• ARR growth and strong operational focus delivered robust 2023 performance despite announced head-winds on non-recurring revenues for Energy segment
• Project delivery bottleneck from 2022 relieved for Power Grid segment, unlocking improved delivery, growth and profitability
• Infrastructure segment continues the trend of growth and uplift in ARR and margins, following the completed business model transformation

Adjusted EBITDA and other alternative performance measures (APMs) are defined as part of the APM section in this presentation on page 35.

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. 170% growth since listing

2

Solid and growing European position with ongoing geographical expansion to Japan

3

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

4

5

Perfect position for profitable growth and business model transformation, with proven ability to execute. ARR base at 1,138 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%

Building SaaS revenues with go-to-market strategy 2

Insight platform A

• Industry leading analytics platform
• Revenue more than doubled since creation in 2020
• Sales cycle of 6 hours to 6 weeks

Smart Power C

• Next generation optimisation platform built on decades of experience
• Unique multi-asset, multi-market platform
• Sales cycle of 6 to 18 months

Trading solutions B

• Market leading algo-trader
• 50M algo trades in 2023
• Sales cycle of 6 weeks to 6 months

^D Increased SaaS 147 221 283 397 2020 2021 2022 2023 +170%

Transformation in the Infrastructure segment

Geographical expansion to Japan following go-to-market playbook 3

20+ customers

First Smart Power deal signed

Applying Volue's GTM-playbook

Proof-point on a global solution for a global market

Increased available offering

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

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

221

283

397

Fourth Quarter 2023 Financial Results

Financial highlights

Financial highlights (NOKm)	Q4 2023	Q4 2022	2023	2022
Operating revenues	413	339	1,463	1,217
Adjusted EBITDA1	86	64	267	203
Adjusted EBITDA margin	21%	19%	18%	17%
EBITDA	30	22	215	147
EBITDA margin	7%	6%	15%	12%
Recurring revenues growth (%) Recurring revenues (% of	29%	12%	28%	15%
revenues)	66%	62%	67%	63%
SaaS revenues growth (%)	35%	22%	41%	28%
SaaS revenues (% of revenues)	26%	23%	27%	23%
R&D CAPEX (% of revenues)	14%	14%	10%	11%

Sales

• Strong underlying financial performance with growth for all segments, despite previously guided head-winds in Market Services revenues compared to last year
• Record quarterly operating revenues, exceeding NOK 400 million for the first time
• 21% revenue growth from Q4 2022, 13% organic growth
• 20% revenue growth for the year, 16% organic growth
• 3 percentage points positive impact from exchange rates in Q4

Profitability

• Adjusted EBITDA in Q4 2023 improved from last year and Q3 2023
• Growth in top-line paves way for improved profitability
• Decline in high-profit non-recurring revenues from Q4 2022 outweighed by uplift in ARR and project delivery with improved overall margin
• Increased growth from recurring revenues impacts margins over time
• Cost base impact from exchange rates at 3 percentage points in Q4, resulting in a neutral impact on profitability
• Two projects with negative impact in Q4 weakened the margin, combined 12 MNOK impacting other Opex
• EBITDA impacted by legal dispute, details on slide 22

Capex

• Higher Capex at year end due to seasonality and assessment of project. Expect Capex to be at 10-11% on yearly basis.

Cash flow

• Cash position at low level at year end due to pre-payments of recurring revenues in Q1

Excellent growth in annual recurring revenues (ARR)

Annual Recurring Revenues1 Annual SaaS Revenues2

Accelerating shift towards SaaS

20

300

400

500

600

700

800

900

1 000

1 100

-

50

100

150

200

250

300

350

400

450

0%

10%

20%

30%

40%

50%

60%

0.0 %

0.5 %

1.0 %

1.5 %

2.0 %

2.5 %

ARR Milestone achieved

+30% Annualised recurring revenues basis1 mNOK 878 1 138 Q4 22 Q4 23

And highly sticky customer base

Customers stay with Volue

Churn2 per year

• 4

1

6

11

16

21

26

31

36

1. Churn is cancelled yearly recurring revenues divided by total revenues. Excluding downsell and product groups sold out of Volue. In 2023 Fire & Chimney portfolio with 5mNOK ARR was sold.

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

21

Settlement of legal dispute

• With reference to stock exchange notice posted 18.11.2023 about a dispute originating from 2021
• Interests from 2021 (7M) and legal costs (6M) take impact booked in Q4 from the announced 44M to 57M
• 50M booked as other non-recurring operating expenses and 7M as other finance costs
• Consequently, adjusted EBITDA is unaffected to reflect the performance of underlying business

Energy segment

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

Growth

• Segment with 27% growth from Q4 22
• Non-recurring revenues from Energy Market Services coming down from an abnormal 2022, approximately 25MNOK decline vs Q4 22
• Strong sales due to increased demand for forecast and analytics services
• Powerful growth in recurring revenues and project delivery improvement

Profitability in the quarter

• Stable margins from the business over the year, despite lower contribution from Market Services. Q4 2022 was abnormally strong due to Market Services revenues.
• Industrial IoT, excluded from the Energy segment, highlighting performance of underlying business
• Strategic investment in R&D capacity in 2022, scaling for longterm growth and impacting margins
• Enerim integration progressing according to plan and the business line has been carrying integration cost that is pulling the margins down for the Energy Segment

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 9% of revenues in the quarter, mainly R&D investments
• Significant investments into new products related to Optimisation and Trading Solutions

Power Grid Segment

Growth

• Healthy growth rate at 21% from strong sales
• Service delivery capacity increased, enabling further growth
• Solid market outlook with large pipeline

Profitability in the quarter

• Adjusted EBITDA margin increased in the quarter compared to Q4 2022
• Consulting revenues back at expected levels, following seasonally low Q3, providing additional profitability
• 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 21% of revenues. Higher Capex at yearend due to seasonality and assessment of project.
• Ongoing investments in international expansion
• CAPEX for the year at 14%, expected somewhat lower going forward

Infrastructure Segment

Growth

• Continued growth momentum at 32% compared with Q4 2022
• Successful shift in business models giving solid uplift in ARR
• Strong sales in 2023, giving increased order backlog, positively impact growth rates going forward

Profitability

• Uplift in margins from Q3 2023 and 2022 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 approx. 24% of revenues for the quarter.
• Higher Capex at year end due to seasonality and assessment of project.
• CAPEX for the year at 15%, expected lower going forward

Guidance

Classification: Private

Update on guidance

Target of NOK 2 billion in revenues 2025, including M&A, reiterated

Annual long-term organic growth of 15% reiterated

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)	Q4 2023	Q4 2022	2023	2022
Operating revenues	413	339	1,463	1,217
COGS	55	64	205	208
Gross profit	366	277	1,259	1,011
Gross margin %	87%	82%	86%	83%
Personnel expenses (excl. capitalised R&D)	184	172	724	602
Other OPEX	88	41	267	206
Adjusted EBITDA	86	64	267	203
Adjusted EBITDA margin %	21%	19%	18%	17%
Non-recurring items	55	42	52	57
EBITDA	31	22	215	146
EBITDA margin %	7%	6%	15%	12%
Depreciation and amortisation	40	26	128	106
EBIT	-10	-4	87	40
EBIT margin %	-2%	-1%	6%	3%
Net financial items	-18	-7	-20	-4
EBT	-27	-12	67	36
Tax	-4	5	22	9
Profit (loss)	-23	-17	45	27

Balance sheet

Balance sheet (NOKm)	Q4 2023	Q3 2023	Q4 2022	Balance sheet (NOKm)	Q4 2023	Q3 2023	Q4 2022
ASSETS				LIABILITIES AND EQUITY
Property, plant and equipment	167	111	124	Equity	845	870	809
Intangible assets	1,049	1,024	623	Total Equity	845	870	809
Pension assets	7	6	6
Non-current receivables and
investments	51	47	35	Non-current debt	345	345
Total non-current assets	1,275	1,188	788	Lease liabilities	107	69	77
				Other non-current liabilities	11	10	15
				Deferred tax liabilities	31	25	23
				Total non - current liabilities	495	449	116
				Borrowings	80	5	7
				Lease liabilities	35	17	19
Inventory	30	27	29	Trade and other payables	248	87	397
Contract assets	58	88	54	Current tax liabilities	39	42	24
Trade and other receivables	554	340	543	Contract liabilities	20	129	31
Cash and cash equivalents	174	270	446	Other current liabilities	329	316	458
Total current assets	816	726	1,073	Total current liabilities	751	596	936
Total assets	2,091	1,914	1,861	Total liabilities and equity	2,091	1,914	1,861

Cash flow statement

	Cash flow statement (NOKm)	31.12.2023	31.12.2022
	Profit before tax	67	36
	Adjusted for depreciations	127	106
	Net finance	22	4
	Change in inventories	0	-10
	Change in other current assets	41	-25
	Change in other current liabilities	-341	126
	Change in other provisions	6	0
	Change in tax paid	-12	-16
	Net cash flow from operating activities	-90	222
	Interest received	19	4
	Purchase of property, plant and intangible assets	-174	-143
	Cash flows related to acquisitions	-379	-1
	Acquisition of non-controlling interests		-
	Net cash flow from investing activities	-534	-140
	Movement in borrowings	378	-36
	Interest paid	-41	-9
	Acquisition of non-controlling interests	-	-
	Purchase of own shares	-	-
	Net cash flow from financing activities	337	-45
	Net change in cash and cash equivalents	-287	37
	Cash and cash equivalents opening balance	446	404
	Effects of exchange rate changes on cash and cash
	equivalents	15	5
32	Cash and cash equivalents closing balance	174	446

Segment overview

33

Energy Segment (NOKm)	Q4 2023	Q4 2022	FY 2023	FY 2022
Operating revenues	211	166	741	607
Adjusted EBITDA	44	58	167	168
Adjusted EBITDA margin	21%	35%	23%	28%
R&D CAPEX (% of revenues)	9%	14%	9%	10%
Power Grid Segment (NOKm)	Q4 2023	Q4 2022	FY 2023	FY 2022
Operating revenues	91	75	321	254
Adjusted EBITDA	16	4	50	12
Adjusted EBITDA margin	18%	5%	16%	5%
R&D CAPEX (% of revenues)	21%	16%	12%	14%
Infrastructure Segment (NOKm)	Q4 2023	Q4 2022	FY 2023	FY 2022
Operating revenues	71	54	244	201
Adjusted EBITDA	19	6	45	34
Adjusted EBITDA margin	27%	11%	19%	17%
R&D CAPEX (% of revenues)	24%	20%	15%	17%
Other Segment (NOKm)	Q4 2023	Q4 2022	FY 2023	FY 2022
Operating revenues	40	44	157	155
Adjusted EBITDA	7	-4	4	-11
Adjusted EBITDA margin	17%	-8%	3%	-8%
R&D CAPEX (% of revenues)	3%	3%	3%	1%

Revenue splits within segments, Q4 2023

% of segment revenue	Energy	Power Grid	Infrastructure	Other Segment
Total ARR	70 %	56 %	70 %	60 %
of which is SaaS	34 %	9 %	38 %	0 %
License fee	4 %	7 %	0 %	0 %
Consulting	13 %	35 %	13 %	0 %
Energy Market Operations	13 %	0 %	0 %	0 %
Other Revenue non-recurring	1 %	2 %	17 %	24 %

Revenues from Energy Market Operations came down from 2022

The Energy segment experienced abnormal trading revenues from power market volatility in the region of 60MNOK in 2022. As expected, and indicated, these revenues are trending significantly down in Q4 2023. Bear in mind that parts of old Enerim's non-recurring revenues are classified as "Energy Market Operations"

Power Grid displays strong consultancy combined with uplift in ARR

Infrastructure continue to display strong ARR and SaaS numbers

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.

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

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

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.

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