Interim results Q3 and 9M 2021

Copyright © 2021 - Confidential

Interim results Q3 and 9M 2021 4 November 2021


The growth journey continues

4552

71

94

125

44

58

83

102

146

0

20

40

60

80

100

120

140

160

180

200

2016 2017 2018 2019 2020

Revenue ARR

+35%ARR CAGR

‘16-20

NOKm

113

162

134

186

0

20

40

60

80

100

120

140

160

180

200

LTM to Q3'20 LTM to Q3'21

+39% ARR

Q3‘20-Q3’21


Steadily growing our revenue base

Q3 2021:

• Revenue of NOK 44.2m, +32% year-on-year

• Organic revenue +18 %

YTD:

• Revenue of NOK 124.5m, +43% year-on-year

Last 12 months:

• Revenue of NOK 161.9m +43% year-on-year

Recurring revenue stable at around 93% YTD

On track for our 2025 ARR target of NOK 500m

RevenueLast 12 months, NOKm

113

125

138

151

162

LTM to Q3’20 LTM to Q4’20 LTM to Q1’21 LTM to Q2’21 LTM to Q3’21

+43%


Investing to support continued growth

• Employee base increased by 48%

over the past year, mainly development and sales

• Q3 2021:

• OPEX NOK 51.6m, and NOK 47.8m excluding

special cost items

• Underlying cost increase of 31%, mainly reflecting

higher salaries

• EBITDA NOK -7.4m, and adj. EBITDA NOK -3.6m

• YTD 2021:

• OPEX NOK 134.5m, and NOK 123.0m excluding

special cost items

• Underlying cost increase of 52%

• EBITDA NOK -10.0m, and adj. EBITDA NOK +1.5m

Number of employees

135

Q1 2021 Q3 2021Q4 2020Q1 2020

60

Q2 2021Q2 2020 Q3 2020

58

98

109

123

145

Administration

Customer success

Development

Sales and Marketing


Operations 01 Highlights

02 Operations

03 Financials

04 Summary and Outlook

05 Appendix

07 Agenda

08 Agenda

09 Agenda

10 Agenda


We keep CFOs in control


Building new layers on top of Complete Control

▪ Digital Signature

▪ Complete Procure

▪ Supplier Management

▪ Business Analyze

▪ CFO Dashboard

▪ Business Intelligence

▪ IFRS 16

▪ Fintech Outsourcing register

▪ Effectplan

▪ Complete Control budgeting

▪ Complete Control

▪ Subscription management

▪ Authority Matrix

▪ Notification and alerts

Compliance & Forecastingconsolidation, reporting, risk management

Business Processesfacilitation and optimization of financial business processes

Controlcontrol of financial data such as revenue, cost, assets, liabilities and cash flow

Insightactionable insight for strategic

process


Egreement acquisition strengthens our pyramid

• State-of-the-art tech stack, competent and lean organization

• Significantly strengthening our offering in

• Contract management and workflow

• Digital signature

• Authorization

• Procurement

• Supplier communication

• Adding ARR of SEK 12.7m, with +40% growth last 12 months

• 300 customers with ~1,600 users

• All types of industries, with ~1/3 in real estate

• Acquired at ~3.5 x ARR plus SEK 20m earn-out

Simple – Scalable - Efficient


Egreement: Growing user base + Growing usage

602683

889983

1 150

1 365

1 634

Q2 21Q1 20Q4 19 Q4 20Q2 20 Q3 20 Q1 21

+171%

No. of users

37 72045 133

59 056

74 330

122 366

141 776

157 159

Q1 21Q2 20Q4 19 Q1 20 Q3 20 Q4 20 Q2 21

+317%

No. of agreements signed in the solution


Launching CFO Dashboard Your central control center for analyzing,

reporting and conveying key figures


Launching CFO Dashboard Covering 4 key areas of finance and operations

Sales

• Revenues and volumes

• Forecasts

• Bookings & orders

• Invoices

• Profits & margins

• Actuals vs. planned

• Analyze sales by segment

• Company, unit and

individual levels

Liquidity

• Monitor cashflow on

day-to-day basis

• Improve liquidity planning

• Review payables & receivables

• Measure collection periods

• Prevent overdue accounts

• Pre-calculated liquidity ratios

• Pre-calculated solvency ratios

KPI’s

• Sales and orders

• Invoices and DSO

• EBIT & EBITDA

• Current & quick ratio

• Solvency

• Capital structure

• Efficiency metrics

• +++

Reporting

• Automate financial &

operational reporting

• Balance sheet

• Profit & loss

• Variance reports

• Ingoing & outgoing balance

• Trend reports

• Segment analysis


Keyforce further strengthens our Insight offeringIntegrating ERP, CRM, HRM or any other incumbent business systems

• Facilitating integration and enabling new business intelligence offerings

• Adding ARR of NOK 14.5m

• 850 customers with around 19,000 end-users

• Acquired at ~2.9 x ARR plus NOK 10m earn-out


Financials 01 Highlights

02 Operations

03 Financials


05 Appendix

07 Agenda

08 Agenda

09 Agenda

10 Agenda


39% year-on-year ARR growth in Q3 2021

• Organic ARR growth of 20%

last 12 months

• New sales continuing

• NOK 5m in Q3 with summer

holiday in July

• 19% increase year-on-year

• NOK 21m YTD, 82% increase

year-on-year

• Strong prospecting pipeline

• Net retention turning positive

• 100% in Q3

• 98% YTD

Annual Recurring Revenue (ARR) bridgeNOKm

134

146

151

169

186

9 -1

4

8 -3

9 -1

10

5

013

90

115

140

165

190

AR

R S

ep

'20

New

cu

sto

mers

Net

rete

ntio

n

Acqu

ired

AR

R

AR

R D

ec'2

0

New

cu

sto

mers

Net

rete

ntio

n

AR

R M

ar'21

New

cu

sto

mers

Net

rete

ntio

n

Acqu

ired

AR

R

AR

R J

un

'21

New

cu

sto

mers

Net

rete

ntio

n

Acqu

ired

AR

R

AR

R S

ep

t'21


23

68

15

33

2016 2017 2018 2019 2020 Q3 21

ARR growth in all geographies

Norway Sweden

40

52

70

85

108

126

2016 2017 2018 2019 2020 Q3 21

23

68

14

18

2016 2017 2018 2019 2020 Q3 21

Denmark

1) ARR portfolios was not registered by geography prior to opening branches 01.01.2018. ARR portfolio for 2017 has been estimated based on sales to the different geographies2) HoC has been present in Denmark since 2015, but revenues did not grow significantly before the new sales/expansion strategy was implemented in January 2017

NOKm NOKm NOKm

1 1

9 10

2016 2017 2018 2019 2020 Q3 21

Europe/AustraliaNOKm

Sales office

Headquarter

76%

8%

11%

Europe/Aus: 5%

ARR by country

NOK 186m end-Q3’21

67%

18%

10%

5%

Development


ARR per product segment – new approach

146

YE’20 Q3’21

186

Insight

Compliance and reporting

Business Process

Control

Cloud-based services >90%

On-premise, <10%




Insight

actionable insight for strategic process


NOK thousand Q3 2020 Q3 2021 % 9M 2020 9M 2021 % 2020

Recurring revenue 31 915 41 748 31 % 83 800 115 380 38 % 117 448

Other revenue 1 536 2 432 3 529 9 092 7 347

Total revenue 33 451 44 179 32 % 87 329 124 473 43 % 124 795

Operating costs -36 492 -51 576 -81 576 -134 471 -143 719

EBITDA -3 041 -7 397 5 753 -9 998 -18 924

EBITDA-margin -9 % -17 % 7 % -8 % -15 %

Special items 0 -3 810 -500 -11 461 -5 173

Adjusted EBITDA -3 041 -3 587 6 253 1 463 -13 751

Adjusted EBITDA-margin -9 % -8 % 7 % 1 % -11 %

Depreciation & Amortization -9 029 -12 226 -17 131 -35 338 -26 811

Operating profit/loss, EBIT -12 070 -19 623 -11 378 -45 336 -45 735

Net financial items -4 442 -5 689 -12 293 -16 549 -15 926

Profit/loss before tax -16 512 -25 313 -23 671 -61 886 -61 661

R&D Capex 4 821 6 845 11 094 22 656 17 970

R&D Capex in % of revenue 14 % 15 % 13 % 18 % 14 %

NOK million Q3 2020 Q3 2021 % 9M 2020 9M 2021 % 2020

ARR 134 186 39% 134 186 39% 146

New customers, ARR 4 5 19% 12 21 82% 21

Net retention, % 100 % 100 % 99 % 97 % 98 %

Key figures Q3

• Revenue +32% in Q3, with

recurring revenue at 94%

• Costs driven by continued high

investments in people

• EBITDA NOK -7.4m,

adj. EBITDA NOK -3.6m

• Loss before tax of NOK 25.3m,

reflecting scale-up of

development and sales resources

• R&D capex ratio stable at

~15% of revenue

Key figures, IFRS


Cash flow YTD

• Net cash flow from operating activities NOK -29 million in first nine months 2021

• NWC increase of NOK 14m

• Includes deferred revenues and commission costs

• Cash flow from investing activities NOK -80 million

• Acquisitions of Business Analyze and Egreement NOK 57 m

• R&D capex of NOK 23m for software development

• Cash flow from financing activities NOK -24 million

• Lease payment

• Debt repayment

• Interest payments

• Cash and cash equivalents remains solid at NOK 214 million

Cash flow YTD 2021, IFRS


Balance sheet development YTD (IFRS)

• YTD changes mainly reflect increased non-current

assets as a result of acquisitions

• Continued strong balance sheet and

liquidity position

• Equity ratio of 54%

• Cash position of NOK 214 million

• Committed capital and acquisition facility (CAF)

of NOK 198 million

• Financial flexibility to continue to pursue high

growth ambitions

338290

100

121

106123

543 534

-10

90

190

290

390

490

YE 2020 Q2'21

Total equity

LT liabilities

Current liabilities

Assets Equity & liabilitiesNOKm

159

273

37

47

347

214

543 534

-10

90

190

290

390

490

YE 2020 Sept 2021

Cash

Current assets

Non-current assets


Conversion to IFRS

• Prepared Q3 2021, YTD 2021 and comparable figures for 2020 under IFRS

• Converted to IFRS as of 1 January 2020 with transition date of 1 January 2018

• The IFRS financial statement 2020 is published on November 4th together with the

IFRS interim report for Q3 2021, with comparable figures for 2019 and 2018

• YTD 2021 the change of accounting standard increased EBITDA and EBIT but

had limited impact on loss before tax and net loss for the period

• IFRS conversion enables potential up-listing to Euronext Oslo and reflects

international shareholder preferences


IFRS effects on YTD P&L

Main differences from NGAAP

• Under NGAAP leasing costs were recognized as

operating expenses

• Under IFRS 16 rental payments are replaced by a

depreciation and interest cost

• Other effects on EBITDA

• Acquisition related costs expensed in P&L

• ARR bonus expensed in the P&L

• Total positive effect on EBITDA is NOK 4.7m YTD

• Overall limited positive impact on loss before tax of

NOK 1.5 million

NOK thousand9M 2021

NGAAP

IFRS

adjustment

9M 2021

IFRS

Recurring revenue 115 380 115 380

Other revenue 9 092 9 092

Total revenue 124 473 124 473

Operating costs -139 173 4 702 -134 471

EBITDA -14 700 4 702 -9 998

EBITDA-margin -12 % -8 %

Depreciation & Amortization -33 541 -1 797 -35 338

Operating profit/loss, EBIT -48 242 2 905 -45 336

Net financial items -15 164 -1 385 -16 549

Profit/loss before tax -63 405 1 520 -61 886


IFRS effects on YTD Balance Sheet

NOK thousand30.09.2021

NGAAP

IFRS

adjustment

30.09.2021

IFRS

Intangible assets 238 489 -7 834 230 655

Deferred tax asset 8 492 9 766 18 258

Other non-current assets 1 464 22 835 24 298

Total non-current assets 248 445 24 767 273 211

Trade and other receivables 54 907 -7 688 47 219

Cash and cash equivalents 213 703 213 703

Total current assets 268 610 -7 688 260 922

Total assets 517 055 17 079 534 133

Share capital 11 412 11 412

Other equity 287 005 -8 645 278 360

Total equity 298 417 -8 645 289 772

Interest bearing debt 89 556 89 556

Other non-current liabilities 15 140 16 198 31 338

Total non-current liabilities 104 696 16 198 120 894

Deferred revenue 62 939 62 939

Other short-term liabilities 51 003 9 526 60 528

Total current liabilities 113 942 9 526 123 467

Total liabilities 218 638 25 724 244 361

Total debt and equity 517 055 17 079 534 133

Main differences from NGAAP

• Leases recognized as right-of-use-assets and lease liabilities (IFRS 16)

• Treatment of transaction costs related to acquired companies (IFRS 3)

• Identification of goodwill on acquired companies (IFRS 3)


Summary and

Outlook

01 Highlights

02 Operations

03 Financials


05 Appendix

07 Agenda

08 Agenda

09 Agenda

10 Agenda


Opportunity-rich

environment

to continue

our growth

journey

Proven growth avenues

• Verified entry model with strong growth momentum in Sweden and Denmark

• Several attractive Europeanmarket opportunities

• Large market potential in the Nordics

• Huge growth opportunities from increased penetration in existing markets

• No clear-cut competitors and weak substitutes

• Selling acquired offerings to existing customers

• Upsell to existing customers a key growth driver

• Recent acquisitions demonstratevalue-adding M&A ability

• Identified several attractive M&A opportunities to accelerate growth


Clear ambitions

Net retention rate

EBITDA margin

Annual Recurring Revenue (ARR)

Ambitions through 2025

NOK 500m+ excluding acquired ARR

110%

40%

Organic ARR growth30%

2021-2025

The CFO’s best friend®Providing financial control and facilitating optimization of business processes

Fulfilling our vision


House of Control

• ‘Best-of-breed’ horizontal software for 2,850

CFOs and 295,000 end-users in 65 countries.

• Large and underpenetrated market opportunity

with limited direct competition

• Scalable subscription-based model with high

recurring revenue

• Consistent organic growth supported by M&A

• Organic growth levers in increased penetration,

new products and services, and upselling and

cross-selling in existing portfolio

• Multiple M&A opportunities for continued Nordic

growth and European expansion

▪ Digital Signature

▪ Complete Procure

▪ Supplier Management

▪ Business Analyze

▪ CFO Dashboard

▪ Business Intelligence

▪ IFRS 16

▪ Fintech Outsourcing register

▪ EffectPlan

▪ Complete Control budgeting

▪ Complete Control

▪ Subscription management

▪ Authority Matrix

▪ Notification & alerts




Insightactionable insight for strategic

process


Appendix 01 Highlights

02 Operations

03 Financials


05 Appendix

07 Agenda

08 Agenda

09 Agenda

10 Agenda


Disclaimer

This presentation (the “Presentation”) has been prepared by House of Control Group AS (“House of Control” or the “Company” and together with its subsidiaries the “The Group"). The Presentation has

been prepared and is delivered for information purposes only. It has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated marketplace.

The contents of the Presentation are not to be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should consult with its own professional

advisors for any such matter and advice.

House of Control makes no representation or warranty (whether express or implied) as to the correctness or completeness of the information contained herein, and neither the Company nor any of its

subsidiaries, directors, employees or advisors assume any liability connected to the Presentation and/or the statements set out herein. This Presentation is not and does not purport to be complete in any

way. By receiving this Presentation, you acknowledge that you will be solely responsible for your own assessment of the Group, its financial position and prospects and that you will conduct your own

analysis and be solely responsible for forming your own view of any refinancing and the potential future performance of the Group’s business.

The information included in this Presentation may contain certain forward-looking statements relating to the business, financial performance and results of the Group and/or the industry in which it 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 Group or cited from third party sources are solely views and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated

development. None of the Company or any other company in the Group, or any of its advisors or any of their parent or subsidiary undertakings or any such person’s affiliates, officers or employees provides

any assurance that the assumptions underlying such forward-looking 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. House of Control and its advisors assume no obligation to update any forward-looking statements or to conform these forward-looking

statements to the Group's actual results. Investors are advised, however, to inform themselves about any further public disclosures made by the Company, such as filings made with Oslo Børs or press

releases.

This Presentation does not constitute any solicitation for any offer to purchase or subscribe any securities and is not an offer or invitation to sell or issue securities for sale in any jurisdiction, including the

United States. Distribution of the Presentation in or into any jurisdiction where such distribution may be unlawful, is prohibited. House of Control and its advisors require persons in possession of this

Presentation to inform themselves about, and to observe, any such restrictions.

This Presentation speaks as of the date set out on the front page, and there may have been changes in matters which affect the Group subsequent to the date of this Presentation. Neither the issue nor

delivery of this Presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of House of

Control have not since changed, and the Group does not intend, and does not assume any obligation, to update or correct any information included in this Presentation.

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 City Court as exclusive venue.

By receiving this Presentation, you accept to be bound by the terms above


Profit and Loss

Third Third Year to Year to

quarter quarter date date

Amounts in NOK 1000 Note 2021 2020 2021 2020

Revenue 6 44 179 33 451 124 473 87 329

Total operating revenue 44 179 33 451 124 473 87 329

Operational service expenses 961 272 2 125 770

Personnel expenses 39 677 29 039 102 846 63 800

Other operating expenses 9 858 4 763 27 434 14 588

Transaction related costs 4 1 080 2 418 2 066 2 418

Total operating expenses 51 576 36 492 134 471 81 576

Earnings before interest, taxes and depreciation (EBITDA) -7 397 -3 041 -9 998 5 753

Depreciation and amortization 5 12 226 9 029 35 338 17 131

Operating profit / (loss) -19 623 -12 070 -45 336 -11 378

Financial income 73 37 719 142

Financial expenses 8 5 762 4 479 17 268 12 434

Net financial items -5 689 -4 442 -16 549 -12 293

Profit / (Loss) before income tax -25 313 -16 512 -61 886 -23 671

Income tax -5 296 -2 908 -13 126 -4 305

Profit / (Loss) for the year -20 016 -13 604 -48 760 -19 366


Balance sheet - Assets

Note 30 September 31 December

Amounts in NOK 1000 2021 2020

Assets

Intangible assets including goodwill 4, 5 230 655 137 480

Property, plant & equipment 903 946

Right-of-use assets 22 835 10 169

Deferred tax assets 18 258 9 929

Other long-term receivables 560 578

Total non-current assets 273 211 159 104

Cost to obtain contracts 7 29 595 25 277

Inventories 188 188

Trade and other receivables 17 437 11 999

Other current assets - -

Cash and cash equivalents 213 703 346 680

Total current assets 260 922 384 143

Total assets 534 133 543 246


Balance sheet – Equity and Liabilities

Note 30 September 31 December

Amounts in NOK 1000 2021 2020

Equity and Liabilities

Share capital 9 11 412 11 383

Share premium 9 438 436 437 489

Other equity 9 -160 076 -111 371

Total equity 289 772 337 500

Interest bearing debt 8 89 556 89 532

Non-current lease liabilities 8 16 198 5 818

Deferred tax liability - -

Other non-current liabilities 15 140 3 635

Total non-current liabilities 120 894 98 985

Current lease liabilities 8 7 897 5 322

Deferred revenue 62 939 63 120

Trade creditors 5 707 3 920

Public duties payable 12 893 16 421

Other short-term liabilities 34 032 17 978

Total current liabilities 123 467 106 761

Total liabilities 244 362 205 746

Total equity and liabilities 534 133 543 246


Cash flow

Year to date Year to date

Amounts in NOK 1000 Note 2021 2020

Cash flow from operating activities

Profit/(loss) before tax -61 886 -23 671

Taxes paid -209 -

Depreciation and amortization 5 35 338 17 131

Non-cash employee benefits expense – share-based payments - 1 685

Changes in inventories - -

Changes in trade receivables -3 170 -11 000

Changes in trade payables 405 -32

Changes in other current balance sheet items -10 780 -14 437

Interest and other financial items 11 461 7 291

Net cash flow from operating activities -28 841 -23 033

Cash flow from investing activities

Payments of internally generated intangible assets 5 -22 656 -11 094

Purchase of tangible assets -164 -414

Payment for aqcuisition of subsidaries, net of cash acquired 4 -57 292 0

Change in other non-current receivables 18 -431

Changes in other non-current liabilities -0 -47

Net cash flow from investing activities -80 094 -11 986

Cash flow from financing activities

Net proceeds from borrowings - 20 000

Repayment of borrowings -5 328 -14 039

Principal element of lease payment -6 248 -3 721

Interest element of lease payments -1 388 -849

Financing costs of long term loans -1 984 -

Interest payment on long term loans -10 073 -6 442

Net proceeds from share issuance 976 1 290

Net cash flow from financing activities -24 045 -3 761

Exchange gains/(losses) on cash and cash equivalents 3 -3

Net change in cash and cash equivalents -132 977 -38 783

Cash and cash equivalents at 1 January 346 680 81 609

Cash and cash equivalents at 30 September 213 703 42 826

Documents

Interim results Q3 and 9M 2021