Crayon : Q1 2024

Quarterly Results

Q1 2024

Melissa Mulholland, CEO Brede Huser, CFO

7 May 2024

Q1 2024

Disclaimer

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 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.

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Q1 HIGHLIGHTS

Strong start of the year

Amounts in NOK

Solid growth driven by continued high demand for Software and Cloud

Adjusted EBITDA development as planned

Strong working capital performance

1,474m Gross Profit

+17% growth

13.8%	Adj. EBITDA Margin 1
	-0.9bps change

-1,085m Net working capital 867m improvement

1 Adjusted EBITDA divided by Gross Profit

MARKET DYNAMICS

Crayon is uniquely positioned across key fundamental market drivers

		Software and Cloud				Services
Gross Profit					Gross Profit				+19%
		+24%
MNOK				MNOK
							2 441
				3 149
		+20%	2 543			+5%		2 047
			MNOK
					574	605
		799
	665
	Q123	Q124	LTM Q123	LTM Q124		Q123	Q124	LTM Q123	LTM Q124
EBITDA	51%	53%	53%	50%	EBITDA
Margin 1	7%	-1%	11%	2%
Margin 1

• Despite challenging macro environment software and cloud licensing maintains steady growth
• Strong demand across multiple vendors with GenAI expectations turning to reality - Microsoft CoPilot capturing mindshare on AI
• Companies preparing their IT environments for GenAI with increase in licensing and security driving demand for upgrade to Microsoft M365 E5
• Solid start of Copilot adoption - customers testing CoPilot prior to implementing at full scall due to ROI and infrastructure requirements

• Customers focus on optimization and cost savings in projects, while many still in early stages of cloud adaption
• Cloud migration and modernization driven by requirement to enhance flexibility, scalability, and security
• Essential for customers to get their IT estate ready for GenAI - requires modern IT infrastructure to to secure and manage data effectively
• Commercialization of GenAI making it more accessible and effective, driving adaption across industries and use cases

1 Adjusted EBITDA divided by Gross Profit

FINANCIAL REVIEW

Market demand for software and cloud remain strong

Q1 Gross Profit by business area

NOK million

			400	71	1 474
		204
	320
479
SW &	SW &	SCE	Consulting	HQ/	Q1 2024
Cloud	Cloud			Elim
Direct	Channel

Q1 Adj. EBITDA by business area

NOK million

		222	12
			-17
	199		203
			-213

SW &	SW &	SCE Consulting HQ/	Q1 2024
Cloud	Cloud	Elim
Direct	Channel

Growth	19%	22%	15%	1%	n/a	17%	EBITDA	42%	69%	6%	-4%	n/a	14%
YoY	Margin 1
				Constant Currency	14%

1 Adjusted EBITDA divided by Gross Profit

FINANCIAL REVIEW

Strong growth in Europe - Nordics negatively impacted by Consulting

Q1 Gross Profit by market cluster

NOK million

			158	111	1 474
		328
	303
574
Nordics	Europe	APAC	US	HQ/Elim	Q1 2024
		& MEA

Q1 Adj. EBITDA by market cluster

NOK million

		37		21	203
148			-1
	-2
Nordics	Europe	APAC	US	HQ	Q1 2024
		& MEA

Growth	7%	31%	14%	9%	n/a	17%	EBITDA	26%	-1%	11%	-1%	n/a	14%
YoY	Margin 1
				Constant Currency	14%

1 Adjusted EBITDA divided by Gross Profit

ANNOUNCEMENT

Crayon appointed an authorized Cloud Commerce Manager for Broadcom in Asia Pacific

Crayon will:

• Welcome all VMware Cloud Service Provider (VCSP) partners and provide them with support and services to help adopt the VMware Cloud Foundation, alongside storage, ransomware and disaster recovery, and application platform services.

"We're confident that Crayon has the knowledge and expertise to help partners deliver a consistent VCF private cloud experience to their customers and provide VCSP partners with world-class service and support."

Ahmar Mohammed

Vice President, Partners, Managed Services, and Solutions GTM,

VMware Cloud Foundation Division at Broadcom

CUSTOMER STORY

Crayon helps Verdane accelerate productivity with Microsoft Copilot

	Verdane is a specialist growth investment firm that partners with tech-enabled and
Norway	sustainable European businesses. Their team of over 140 investment professionals
and operating experts are in Berlin, Munich, Copenhagen, Helsinki, London, Oslo,
	and Stockholm. It has an AUM (assets under management) of €6.9 billion.

Customer Problem

• Wanted to streamline operations with AI.
• Aimed to establish Microsoft 365 Copilot as a foundational tool to drive efficiency and competitiveness.
• Sought to enhance productivity and output quality across various operational teams.
• Used to manually sift through numerous documents for information.
• Needed efficient tools for market research and pitching in its competitive industry.

Crayon Solution

• Partnered with Crayon to integrate Copilot AI into its operations.
• Verdane became the largest Copilot Cloud Solution Provider client in Western Europe.
• Crayon organized and adapted readiness workshops to introduce Copilot to the organization.
• Crayon is supporting the wider Copilot rollout through dedicated assistance, tutorial videos, templates.

Outcome and next steps

• 87% of operational experts reported enhanced quality and productivity in their workday.
• Improved output quality across the Microsoft Office Productivity Suite by 67%.
• Copilot streamlined market research and pitching processes, enhancing Verdane's competitiveness.

"We were early adopters, and we already knew a lot about AI. So instead of putting us into a standardized project plan, Crayon adapted to our actual needs, which enabled us to move quicker."

Morten Reinhardtsen

Verdane's Chief Information Officer

Crayon Group - Internal Only

HIGHLIGHTS OF OUR ENVIRONMENTAL, SOCIAL AND GOVERNANCE PERFORMANCE IN 2023

Key ESG publications

2023 Full ESG Report	2023 Summary ESG Report	2023 Human Rights
		Transparency Statement

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Financial

Review