Slides
Page 1
Quarterly Results Q1 2025 Melissa Mulholland, CEO Brede Huser, CFO 21th May 2025
Page 2
The statements contained in this presentation may include forward-looking statements, such as statements of future expectations regarding the Company's results of operations, financial condition, liquidity, prospects, growth and strategies. These statements are based on the management’s current views and assumptions and involve both known and unknown risks and uncertainties and assumptions that are within and outside the management's control. Although the company believes that the expectations implied in any such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Actual results, performance or events may differ materially from those set out or implied in the forward-looking statements. No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved. The forward-looking statements included in this presentation represent the company's views as of the date of this presentation and subsequent events and developments may cause the company's views to change. The company disclaims any obligation to update forward-looking information except as required by law. Readers should not place undue reliance on any forward-looking statements. This presentation and the information contained herein is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation contains alternative performance measures, or non-IFRS financial measures. Definitions and calculations are presented on page 18-19 in the financial report. 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 as legal venue. Disclaimer Q1 2025
Page 3
Solid growth in international markets – continued strong working capital performance Q1 HIGHLIGHTS Amounts in NOK Solid growth in international markets – soft performance in the Nordics Adjusted EBITDA margin reflecting investments for future growth 1 Adjusted EBITDA divided by Gross Profit 1,546m Gross Profit +5% growth Continued strong net working capital Adj. EBITDA Margin 1 1.7 pp decrease12.1% Net working capital 401m improvement -1,486m
Page 4
FINANCIAL REVIEW Solid growth in international markets 183 1867 55 Nordics Europe APAC & MEA US HQ/Elim Q1 2025 -51 -8 612 362 368 181 23 Nordics Europe APAC & MEA US HQ/Elim Q1 2025 1 546 Q1 Gross Profit by market cluster NOK million Q1 Adj. EBITDA by market cluster NOK million 7% 12%19% 15% n/a 30% 15%2% -4% n/a5% 12% EBITDA Margin 1 1 Adjusted EBITDA divided by Gross Profit 3%Constant Currency Growth YoY 4pp3pp -3pp n/a -2pp4ppChange YoY
Page 5
FINANCIAL REVIEW Strong improvement in Consulting profitability 514 357 220 463 SW & Cloud Direct SW & Cloud Channel SCE Consulting HQ/ Elim Q1 2025 -8 1 546 225 186 244 17 44 SW & Cloud Direct SW & Cloud Channel SCE Consulting HQ/ Elim Q1 2025 -344 Q1 Gross Profit by business area NOK million Q1 Adj. EBITDA by business area NOK million 1 Adjusted EBITDA divided by Gross Profit 7% 8%12% 16% n/a 44% 8%68% 10% n/a5% 12%Growth YoY EBITDA Margin 1 3%Constant Currency 2pp-1pp 14pp n/a -2pp2ppChange YoY
Page 6
MARKET DYNAMICS Microsoft prioritizing higher-quality CSP partners Software and Cloud 799 871 Q124 Q125 LTM Q124 LTM Q125 3 148 3 542 +9% +13% 53% 54% 50% 57% EBITDA Margin 1 Gross Profit MNOK • Microsoft rationalizing CSP Partner ecosystem • For top-tier CSPs like Crayon, this presents growth and consolidation opportunities • Customers reassess licensing agreements due to EA - CSP transition • AI drive consumption growth and new licencing demand Services 604 683 Q124 Q125 LTM Q124 LTM Q125 2 440 2 714 +13% +11% -1% 9% 2% 10% EBITDA Margin 1 MNOK • Cloud spend optimization remains top priority • Digital transformation and cloud migration as AI adoption continues • Increased regulatory complexity drives demand for improved security, compliance and governance structures 1 Adjusted EBITDA divided by Gross Profit Gross Profit MNOK 5
Page 7
Challenges • Company has built extensive massive media archives since the 1970s: 5M images, 150K hours of video, 16K hours of audio, and millions of text documents. • Manual editing is slow, error- prone, and unscalable. • Needs data enrichment to enable personalization with content recommendations for better targeting, and to grow audience share. Solution • Cloud-based AI and GenAI solutions to help automatically classify media content, generate and store metadata for all content. • Seamless metadata access via its platform ecosystem (CMSs, personalized search engine). • Capabilities include OCR, text generation, speaker/ video indexing, scene segmentation, sentiment analysis, logo/ celebrity detection, and Q&A. Outcomes • Development to complete within 18 months to deliver a Knowledge Graph and platform integration with all the media company’s internal software apps that will enable it to better target users, staff, and advertisers. • SGD $3.3M net new AWS ARR Cloud-based AI and GenAI solutions automate media classification and metadata generation, enabling rich search, personalization, and advanced content analysis across text, audio, and video for largest media company in Singapore. Singapore Media Conglomerate DATA & AI Location: Singapore Industry: Media Singapore media company FTE: 3 500
Page 8
Financial Review
Page 9
FINANCIAL REVIEW Continued strong net working capital performance Net working capital Q1 2025 NOK million Net working capital over time NOK million 9,956 -1,290 -1,486 -196 Accounts receivable Accounts payable Trade working capital Other working capital Net working capital -11,246 -218 -132 905 -1,121 -1,085 -1,403 157 -1,473 -1,486 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 24 NOK 401m improved working capital performance year over year Underlying improvement NOK 526m due to reduced factoring Average LTM NWC as share of LTM gross profit ended at -16.5% In line with 2025 Outlook at ~15%
Page 10
FINANCIAL REVIEW Profit and loss – Q1 2025 • EBITDA adjustments include NOK 2m in share-based compensations, NOK 9m M&A cost and NOK 6m related to close of call center operations in the Philippines • Interest expenses NOK 63m, reduced from NOK 71m in Q124 is driven by lower interest on Bond loan and RCF offset by increased cash pool interest as a consequence of mitigating FX risk on the balance sheet • Net income ended at NOK 43m, an improvement of NOK 33m compared to Q124 NOK million Q1 2025 Q1 2024 2024 2023 Gross Sales 17 354 13 936 59 601 49 077 Revenue 1 741 1 633 7 012 6 397 Cost of sales -195 -159 -729 -735 Gross profit 1 546 1 474 6 283 5 662 Operating expenses -1 376 -1 296 -5 193 -4 917 EBITDA 170 178 1 090 745 Adjustments 17 25 84 175 Adj EBITDA 186 203 1 174 919 Depreciation and amortization -88 -81 -337 -302 EBIT 82 98 753 442 Share of profit (loss) from assc. 0 0 2 -0 Interest expense -63 -71 -279 -276 Other financial income/expense 28 -10 -81 -249 Net income before tax 48 16 396 -82 Tax -4 -7 -128 -77 Net income 43 10 267 -159 Basic EPS .54 .14 2. 90 -1.29 Comprehensive income Currency translation -299 91 167 189 Comprehensive income, net of tax -256 100 435 29
Page 11
FINANCIAL REVIEW Balance sheet – Q1 2025 ▪ Both RCF and Overdraft facility undrawn by quarter end ▪ Factoring ended at NOK 122m, a significant reduction from NOK 247m compared to Q124 NOK million Assets Mar 31 2025 Mar 31 2024 Goodwill 3 162 3 314 Other intangible assets 574 657 Deferred tax asset 228 133 Equipment 113 107 Right of use assets 462 554 Investments in assoc.comp. 45 43 Other non –current assets 172 176 Total non-current assets 4 756 4 984 Accounts receivable 9 956 8 385 Other current receivables and current assets 3 007 2 389 Cash and cash equivalents 1 459 1 402 Total current assets 14 423 12 176 Total assets 19 179 17 160 Equity and liabilities Mar 31 2025 Mar 31 2024 Shareholders' equity 2 701 2 590 Interest bearing liabilities 1 182 1 793 Deferred tax liabilities 157 120 Lease liabilities 400 492 Other non-current liabilities 23 27 Total non-current liabilities 1 761 2 432 Accounts payable 11 246 9 311 Income taxes payable 36 57 Public duties 620 600 Current lease liabilities 108 101 Other current interest-bearing liabilities 160 177 Other current liabilities 2 548 1 891 Total current liabilities 14 717 12 138 Total equity and liabilities 19 179 17 160
Page 12
FINANCIAL REVIEW Robust financial position – Net debt / EBITDA 0.4x Cash flow from operating activities NOK million LTM cash development NOK million Q1 2024 1,082 EBITDA1 421 TWC -174 Capex -755 Credit facilities -555 Tax, lease & interest 38 Currency translation/ Other Q1 2025 1,402 1,459 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 69 158 -955 2,117 97 599 -1,286 1,889 87 Cash flow from operations driven by changes in net working capital 1 EBITDA (non-adjusted) Strong cash position and liquidity reserve of NOK 3.348m included undrawn credit facilities Net debt / EBITDA 0.4 (1.2x) Liquidity reserve Q1 25 3,348 Q1 24 2,669
Page 13
2025 OUTLOOK 2025 Outlook Gross Profit growth Adj. EBITDA margin 1 Net working capital 2 2024 LTM Q125 2025 Medium term Comment 11% 8% 15-20% ~20% 2025 outlook implies organic growth in line with medium-term outlook 18.7% 18.2% 19-22% Gradual increase to 25% Continuing growth while also improving profitability -15.1% 16.5% ~ -15% ~ -15% Expected to normalize medium-term driven by working capital improvements 1 Adjusted EBITDA divided by Gross Profit 2 Average NWC last 4 quarters as share of gross profit last 4 quarters 13
Page 14
Combining two leading global providers of software and cloud solutions
Page 15
Crayon - Internal Only Looking Ahead — The Next Chapter for Crayon • Crayon is entering its next chapter as part of a stronger, global platform with SoftwareOne • Integration preparations are progressing well, with a focus on day 1 readiness • Our core strengths and customer commitment will remain central to the combined company • Together, we are positioned to accelerate growth, expand capabilities, and create long-term value Thank you for your continued trust and support
Page 16
Q&A CRAYON EARNINGS Q1 2025