SmartCraft : Redeye SaaS Seminar June 5th

Redeye SaaS Event 2024

JUNE 6TH, 2024

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SaaS for SME construction companies

People

Industry challenges

o 0-5% margins -> High level of bankruptcies	Documentation

1. High level of conflict between construction company and customer

o	High level of accidents and deaths	Material
o	Increasing demand for documentation and

reporting

SmartCraft digital solutions

1. Business overview and insight with control of people and material costs

1. Digital flow of documentation to avoid conflict o Safety at your fingertips

1. Digital quality assurance to build according to rules and regulations

Renovation is our target segment

Renovation is our target market

1. Large market, bigger than new build

1. Less volatile, with consistent growth

1. Downturn in new build affects the large construction companies, engineers and architects

1. Existing buildings have constant demand for renovation, maintenance and service

1. Energy efficiency drives further demand for renovation

1. Ongoing digitalization of a digitally immature market

Norwegian construction market by segment, bNOK

New residential	Renovation residential
New commercial	Renovation commercial
New Infrastructure	Renovation infrastructure
	160
	140
	120
	100
	80
	60
	40
	20

Source: Prognosesenteret, 2023

Q1 2024 financial highlights

Continued strong growth, consistently high margins and low churn

MNOK 401	33%	7%
Annual Recurring	Adjusted	Stable churn
Revenue	EBITDA-capex
+16%	Consistently hi
+2 p.p.
+2%	profitability

Leading position in the Nordics

1. Consistent and solid growth before and after the IPO in June 2021

1. Constantly gaining market share

1. 16 offices in Sweden, Norway, Finland and UK

1. ~260 employees incl. latest acquisitions

Solid performance over time

	2019	2023	Q1'24	Q1'24
	Incl Q2 acquisitions
ARR	145	387	401	~456
NOKm
			27.1% CAGR		31.0% CAGR

Adjusted	36%	42%	41%	Not
EBITDA
disclosed
margin

4.9 p.p uplift

Number of	~8,000	~12,500	~12,700	~13,300
Customers
			11.1% CAGR	12.2% CAGR

Good growth in marketing & sales efficiency

1. +643% brand exposure1 (Y/Y) to secure market position

1. 18% more inbound leads (YoY)

1. 17% more sales meetings (YoY)

1. Great focus on the electro industry

1. Attended Sähkö Trade Fair (largest electro gathering Finland)

1. Attended Elektromessen in Norway

Brand exposure for the SmartCraft Group

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Inbound leads

Inbound leads YoY

Q1 -12022

Q1 - 2023

Q1 - 20243

*1 Visibility of SmartCraft communication in different media channels

High growth in recurring revenue as basis for success

1. 16% growth in ARR

1. 3.3% organic growth quarter-over-quarter

1. CPI price increases spread throughout year and implemented at time of contract renewal

1. Good performance in new sales

1. Good traction in the market, new sales higher than Q1'23 o Growth hampered by increased downgrades

ARR development, mNOK

						+16%	386,6	401,5
						367,1
				347,0	357,5
	296,1	303,6	318,3
278,9
+21%	+20%	+16%	+17%	+15%	+15%	+14%	+14%	+12%
Q1'22	Q2'22	Q3'22	Q4'22	Q1'23	Q2'23	Q3'23	Q4'23	Q1'24
							YoY organic growth

Quarterly ARR growth history, mNOK

					Organic			M&A
					growth
					5,8
17,6	2,8					17,3			10,6
	8,3				12,8		12,1		13,2	12,7
	5,6
							3,4
Q1'22	Q2'22	Q3'22	Q4'22	Q1'23		Q2'23	Q3'23	Q4'23	Q1'24

Quarterly currency adjustments not displayed in chart

ARR bridge YoY, mNOK

+12%

Continued growth in revenue and strong profitability

Solid YoY revenue growth		Consistently high profitability
	mNOK
97.0%		97.0%
	+16.4%	109,7	41,8 %	43,5 %	41,9 %		40,9 %
			39,3 %
94,3
			31,1 %	32,7 %	33,8 %	31,4 %	33,1 %
				Acquired

Coredination

R&D capex

mNOK

40

35

30	10,7 %
	7,8 %
25
20
15	10,1
10	8,5
5
0

0

0

0

0

0

0

0

0

0

0

0

Q1'23Q1'24

Revenue

Recurring revenue (%)

1. Maintaining high recurring revenue share

1. 12% organic growth in annual recurring revenue

Q1'23	Q2'23	Q3'23	Q4'23	Q1'24
			Adj.EBITDA margin				Adj. EBITDA-R&D capex margin

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

Q1'23		Q1'24
R&D capex		R&D capex % of sales

1. New projects in a research phase

1. Development of SmartCraft Core and integrations for cross sale and upsales

1. 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

+24.7 %

+0.6 %

			+11.2 %
	+152.7 %	+45.0 %
73,1	24,8	21,6	31,8	73,5
Q1'23	Q2'23	Q3'23	Q4'23	Q1'24

1. 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

Balance sheet, March 31, 2024

mNOK
Cash and cash equivalents		Deferred revenue
Current assets		Current liabilities
Non-current assets		Non-current liabilities
Goodwill and intangible assets		Equity

260,1			125,4
		96,0
				55,8
	56,7
	34,6
802,5		876,8

Assets

Equity and liabilities

1. Net cash positive

1. Negative net working capital driven by customer prepayments o Holds 1,93% (~3,3m) shares, per the end of April