Omda : Q4 2023 Report

Quarterly Report	Q4 2023

About Omda | Q4 2023

02

Omda is the leading provider of specialised software for healthcare and emergency response in the Nordics, with a growing presence in Europe, North America, and the Pacific region. We have more than 500 customers in 27 countries and employ almost 300 dedicated specialists. Our highly specialised healthcare solutions empower medical professionals and emergency responders, enabling them to know more and work smarter. With a focus on user-centric design, value-driven development, and close working relationships with customers, Omda delivers solutions that enhance patient safety and improve healthcare outcomes.

Through our focused mergers and acquisitions strategy, we have built a unique blend of best-in-class innovative technology and outstanding expertise. We build long-term relationships with our customers, helping them achieve their goals, and knowing that our growth is earned by consistently delivering secure, quality software services.

Our portfolio of leading solutions encompasses the following domains:

Emergency	Connected Healthcare
Robust systems for managing every	Solutions for secure information
aspect of emergency response.	sharing and collaboration across
	healthcare domains.

Laboratory Information Management Systems End-to-endblood, cell, and tissue management.

Medical Imaging	Medication Management	Woman & Child	Health Analytics
Complete solution for securely	Decision support and medication	Trusted solutions to safeguard	Improving the quality, utility, and
capturing, storing, and sharing	management for safe and	pregnancy, childbirth,	management of medical data
medical images.	effective oncology treatments.	and infancy.	from collection to analysis.

Omda aims to continue its growth, both organically and through targeted mergers and acquisitions. We position for the future by investing profits in our portfolio of products and services and creating an inspiring work environment, while always operating as a responsible business within the global community.

Omda's headquarters are in Oslo, Norway and our employees are located in ten countries across Europe, North America, Oceania and Asia.

Omda is listed on the Oslo Stock Exchange, Euronext Growth (OMDA) and the bond is listed on Nordic ABM. For more information on Omda, please visit omda.com.

Our Vision	Our Mission	Our Values
Smarter ways to a safe	Providing proven, focused software	We are user centric, ambitious,
and healthy world.	for health and emergency professionals	curious, and collaborative.
	to know more and work smarter.

Highlights | Q4 2023

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Highlights

Q4-23 total income 109 MNOK vs 98 MNOK in Q4-22

Full-year income 415 MNOK, a 12% increase over 2022

Reported EBITDA was 20 MNOK resulting in a 19% EBITDA margin for

Q4-23, compared to -21% in Q4-22

Recurring revenue 75% of total sales, same as in Q4-22

Q4-23 organic growth of 10% in local currency vs Q4-22 (15% in NOK)

Full-year organic growth of 9.5% in local currency (13% in NOK)

Completed a new bond issue of 500 MNOK, with an additional tap issue of 500 MNOK

Introduction | Q4 2023

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Introduction

Omda finished 2023 with Q4 sales reaching NOK 109 million, 11% up from

Q4-22. This means we also achieved a record annual revenue of NOK 415 million, exceeding our target of NOK 400 million.

EBITDA was 19% compared to -21% in the same quarter last year. Although this is a significant step, there is still room for improvement. We have identified several levers for securing that EBITDA gradually improves and reaches the average target of 30%.

The cost side at Omda comprises three main categories: cost of goods sold (COGS), other costs, and personnel expenses. These are expected to account for 5%, 15%, and 50% of revenue, respectively, to ensure a stable average 30% EBITDA margin.

COGS includes costs related to the resale of software that can be replaced with in-house software over time. This cost item has decreased from 11% in Q4-20 to 6.6% in Q4-23. With increased sales combined with ongoing measures to replace third-party solutions with own software, we will continue to approach the target of 5% during 2024.

Other costs are 15% for the quarter compared to 22% in the same quarter last year.

Personnel costs account for 60% in Q4-23 compared to 75% in Q4-22, which is a substantial improvement. However, further measures, primarily related to the use of external consultants, will be taken to fully reach and maintain the targeted average margin of 30% over time.

The use of consultants in large customer projects within LIMS and Emergency is the primary driver that has affected the personnel costs negatively. These projects have significant long-term value as they drive recurring revenues over the next decades. Hence, completing these projects with the use of consultants will create value. Most of them will conclude in 2024, significantly reducing the consultancy costs going forward. New projects will be staffed with internal resources mainly. Collectively, these measures are expected to reduce personnel costs to the target level of around 50% in 2024.

Introduction | Q4 2023

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Based on the results for Q4-23 and planned measures, we maintain the target margin of 30% for the current business.

Working capital and cash conversion

We expect both working capital and cash flow from operations throughout the year to improve and normalise during 2024.

Acquisitions

Although the main priority in all business areas is to maintain organic growth at the current level in adddition to achieveing profitability and cash conversion targets, activity in the M&A area is high. During the fourth quarter of 2023, we refinanced our existing bond loan with a tap-issue of up to NOK 500 million. In addition, we have a cash reserve of NOK 120 million and expected cash flow from operations that give us the opportunity to make both small and large acquisitions. We will take action when terms and the subsequent business case display sufficient return.

"With income growth of 11% and a cost reduction of 25% in 2023, we are well positioned for positive profitability development in 2024."

-Sverre Flatby, CEO

Financials | Q4 2023				06
Income Statement - Omda AS, consolidated unaudited accounts
KNOK	Q4-23	Q4-22	2023 YTD	2022 FY*
License sales	4 214	2 666	10 351	12 327
Recurring Software Revenue	81 543	73 404	320 940	281 266
Professional Services	21 915	17 909	72 660	64 157
Other operating income	182	27	2 969	1 488
Hardware	912	3 641	6 507	8 919
Total Sales	108 765	97 647	413 426	368 158
Government grants R&D (Skattefunn)	425	366	1 646	1 498
Total Income	109 191	98 013	415 072	369 656
Cost of Goods and Services	7 214	9 741	32 010	33 380
Salary and personnel	65 557	73 952	255 522	251 584
Other cost	15 940	21 231	64 278	69 084
Restructuring cost		13 301		13 301
Sum Cost	88 711	118 225	351 810	367 349
EBITDA	20 480	-20 212	63 262	2 307
EBITDA-%	19%	-21%	15%	1%
Depreciation	1 223	1 039	4 586	3 790
EBITA	19 256	-21 251	58 676	-1 482
EBITA-%	18%	-22%	14%	0%
Amortisation of intangible assets	12 685	22 713	66 766	85 076
Impairment of intangible assets	0	3 891	-	3 891
Changed estimate **	-	-	-136 777	-
EBIT	6 572	-47 854	128 686	-90 449
EBIT-%	6%	-49%	31%	-24%
Interest expenses	-14 646	-10 773	-47 581	-37 198
Other net financials	8 691	-4 552	22 263	-8 684
Profit before tax	617	-63 178	103 369	-136 331
Taxes	-4 960	-4 458	-8 353	-4 733
Changed estimate useful life of intangible assets	-		7 372
Net profit	5 577	-58 720	104 350	-131 598
Key ratios
Capitalized R&D expenditure	12 882	10 389	40 736	35 777
CAPEX-%	11,8%	10,6%	9,9%	9,7%

* As presented in Annual Report of 2022 / ** Changes in estimate of useful life of intangible assets

Financials | Q4 2023		07
Balance Sheet - Omda AS, consolidated unaudited accounts
NOK Thousand	31.12.23	31.12.22*
Customer Contract and IP	238 937	194 591
Intangible assets developed	203 316	100 205
Goodwill	65 187	77 216
Deferred Tax Asset	38 976	30 031
Total intangible assets	546 416	402 043
Fixed durable assets	9 217	9 138
Total tangible assets	9 217	9 138
Inventories	47	327
Accounts receivables	43 561	51 151
Other receivables	54 620	34 319
Cash and liquid assets	121 223	196 566
Current assets	219 451	282 362
Total assets	775 084	693 543
Share capital	2 097	2 097
Share premium reserve	103 160	26 677
Total equity	105 257	28 773
Deferred Tax	34 685	26 406
Bond Loan	477 483	494 426
Total long term liabilities	512 168	520 832
Accounts payable	18 029	11 502
Public duties payable	28 511	34 522
Other short term liabilities	111 119	97 915
Current liabilities	157 659	143 939
Total equity and liabilities	775 084	693 544

* As presented in Annual Report of 2022

Financials | Q4 2023				08
Cash Flow - Omda AS, consolidated unaudited accounts
KNOK	2023 Q4	2022 Q4	2023 YTD	2022 FY*
Profit/(loss) before taxation	617	-63 178	103 369	-136 332
Net financial items	5 955	15 324	25 318	45 882
Depreciation and amortisation	13 908	27 642	-65 425	92 756
Cash earnings from operations	20 480	-20 212	63 262	2 308
Changes in accounts receivables	-8 587	-17 320	7 590	28 253
Changes in accounts payables	7 606	1 593	6 527	-7 971
Changes in other current receivables/liabilities	-2 813	20 467	-37 411	-16 222
Changes in prepayment from customers	5 130	-16 088	10 305	**
Changes in public duties payable	17 604	17 570	-6 011	10 391
Taxes	1 179	1 975	-1 640	-5 123
Cash flow from operating activities	40 599	-12 014	42 620	11 636
Capital Expenditure IP	-12 882	-10 389	-40 736	-35 777
Capital Expenditure other	-1 223	-1 010	-4 586	-6 077
Acquisitions	-	-	-	-20 122
Buy-back of shares	-9 156	-	-20 000
Cash flow from investing activities	-23 261	-11 399	-65 322	-61 976
Dividend paid		-	-	-
Proceeds from new shares issue	-	-	-	-
Refinancing Expenditure ***)	-14 068		-14 068
Change in Debt	-	-	-	-480
Net Interest	-8 124	-10 061	-41 019	-34 130
Cash flow from financing activities	-22 192	-10 061	-55 087	-34 610
Net change in cash and cash equivalents	-4 854	-33 474	-77 789	-85 015
FX adjustments	-2 478	-1 664	2 445	725
Cash and cash equivalents at start of the period	128 555	231 703	196 566	280 855
Cash and cash equivalents at end of the period	121 223	196 565	121 223	196 565

• As presented in Annual Report of 2022
• Included in "Changes in other current receivables/liabilities"
• See Refinancing Expenditure Breakdown on page 14

Financials | Q4 2023

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DISTRIBUTION OF SALES, PER COUNTRY

• Sweden 44%
• Norway 19%
• Rest of the world 17%
• Denmark 10%
• Finland 9%

DISTRIBUTION OF SALES, PER BUSINESS AREA

• Emergency 45%
• Connected Healthcare 13%
• LIMS 13%
• Woman & Child 12%
• Medical Imaging 7%
• Health Analytics 6%
• Medication Management 4%

DISTRIBUTION OF SALES, PER INCOME TYPE

• Recurring Revenue 78%
• Professional Services 18%
• Hardware Sales 3%
• License Sales 2%
• Other Income 1%

EMPLOYEES PER Q4 2023 (TOTAL 283 FTE)

• Nordics 72%
• Asia 18%
• Europe 4%
• Oceania 6%
• Americas 0%

All numbers YTD 2023. Due to rounding, numbers may not sum to 100%.

Financial Review | Q4 2023

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Financial Review

These condensed interim financial statements are prepared in accordance with Norwegian Accounting Standard 11 Interim Financial Statements (NRS 11 Delårsregnskap). These condensed interim financial statements are unaudited and do not include all the information and disclosures required by the Norwegian Accounting Act and Generally Accepted Accounting Principles in Norway (NGAAP) for a complete set of financial statements, and should be read in conjunction with the Consolidated annual financial statements for the year ended 31 December 2022. A description of the significant accounting policies applied in preparing these condensed interim financial statements is included in Omda's Consolidated annual financial statements of 2022, available at omda.com/omda-investors.

RESULTS FOR THE FOURTH QUARTER 2023

Omda displayed 11% growth in reported income, measured in NOK, for the fourth quarter of 2023 compared to Q4-22, in spite of the sale of the Finnish scanner business in Q3. Reported EBITDA increased to 20.5 million (-20.2). The reported EBITDA-margin increased to 19% in Q4-23, from -21% in the same period of 2022. The improvement compared to the previous quarter is a consequence of continued organic growth combined with actions related to the margin-improvement programme that was initiated in Q4-22.

M&A

Omda did not acquire any new businesses in the quarter. The company focused on integration activities related to the last four acquisitions and growing the prospect list. We are maintaining and developing dialogues with potential new acquisition candidates and exploring alternatives for further divestment of non- strategic assets.

PROFIT AND LOSS ACCOUNT

Revenue

Total income in the fourth quarter of 2023 amounted to 109.2 million (98).

Recurring revenue comprises 75% of total sales and grew 11% compared to Q4-22.

Recurring revenues continue to grow in accordance with expectations, while sale of new licenses, which by nature vary from quarter to quarter, was above the same quarter last year. Professional Services increased 22% compared to Q4-22, ending at 21.9 million (17.9).

Hardware sales came in below the same quarter last year, ending at 0.9 million (3.6). Hardware sales relate primarily to Business Area "Emergency".