Interim results Q2 and H1 2021 - houseofcontrol.com

Copyright © 2021 - Confidential

Interim results Q2 and H1 2021 20 August 2021


The growth journey continues

4552

71

94

125

44

58

83

102

146

0

20

40

60

80

100

120

140

160

2016 2017 2018 2019 2020Revenue ARR

+35%ARR CAGR

‘16-20

NOKm

103

151

110

169

0

20

40

60

80

100

120

140

160

LTM to Q2'20 LTM to Q2'21

+54% ARR

Q2‘20-Q2’21


94 99 103113

125138

151

-9%

-6%

3%4% 4%

1%

-4%-9%

-4%

3%5%

8%7%

4%

-10,00%

-5,00%

0,0 0%

5,0 0%

10, 00%

15, 00%

20, 00%

25, 00%

30, 00%

-50

0

50

100

150

LTM toQ4'19

LTM toQ1'20

LTM toQ2'20

LTM toQ3'20

LTM toQ4'20

LTM toQ1'21

LTM toQ2'21

Revenue EBITDA % Adjusted EBITDA %

Investing in continued growth

Strong revenue growth

Q2 2021:

• Revenue of NOK 40.6m, +49% year-on-year

• Organic revenue +21%

Last 12 months:

• Revenue of NOK 151.2m, +47% year-on-year

• Proforma revenue NOK 164m

High investments in product innovation and sales for continued growth

• Workforce increase from 58 to 135, with salaries increasing from NOK 14.2 million to NOK 29.5 million

On track for the 2025 ARR target of NOK 500m

Revenue and EBITDA, last 12 monthsNOKm


Operations 01 Highlights

02 Operations

03 Financials

04 Summary and Outlook

05 Appendix

07 Agenda

08 Agenda

09 Agenda

10 Agenda


Sales office

Headquarter

76%

8%

11%

Europe/Aus: 5%

ARR by country

House of Control in briefThe CFO’s best friend

• ‘Best-of-breed’ horizontal software for more than 1,600 CFOs across the Nordics

• 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

24%of ARR

17%of ARR

59%of ARR

Complete Control

Supplementary solutions

(23 and growing)

Business process solutions

NOK 169m end-Q2-21

72%

11%

11%

6%

Development


Our business journey

Contract Lifecycle

Anal

ytic

s & R

epor

ting

Fore

cast

ing

& B

udge

ting

Dash

boar

d

Purchasing

Invoices

Payments

Resources (ERP)

Customers (CRM)

Employees (HRM)

Supplier Contracts

Customer Contracts

Employee Contracts

Business processes

Incumbent Businesssystems

House of Control offering

House of Control integrationDinERP


Acquisitions have doubled our addressable market

Large addressable Nordic marketsNOKbn

Complete Control

NOK 1,9bn

Supplementary solutions

NOK 1,5bn

Business Process

SolutionsNOK 5,5bn +

Source: Third-party consultancy

• Our acquisitions have doubled the addressable market to ~60 times the current ARR

• Creates room for additional growth in existing markets

• New sales, upselling and cross-sales on a growing customer base

~NOK 9bnMarket opportunity


Investing in product development and sales

• Continuously improving 5th generation Complete Control

• Enabled conversion from legacy CC4 to CC5 for all customers

• Launched faster and simpler version of Advanced Contract Registration

• Launched new functionality for IFRS 16 compliant Group reporting

• Complete Procure now functionally integrated with Complete Control

• Sold Complete Procure in all Scandinavian countries and see promising pipeline

• Launched new and improved user interface for Business Analyze – including mobile app

0

20

40

60

80

100

120

140

160

Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Administration Development Customer success Sales

Number of employees


Financials 01 Highlights

02 Operations

03 Financials


05 Appendix

07 Agenda

08 Agenda

09 Agenda

10 Agenda


54% year-on-year ARR growth in Q2 2021

102 105 110

134

146151

169

3 05 1 4 0

21

91 4

83

91

10

90

115

140

165

ARR

Dec

'19

New

cus

tom

ers

Net

rete

ntio

n

ARR

Mar

'20

New

cus

tom

ers

Net

rete

ntio

n

ARR

Jun

'20

New

cus

tom

ers

Net

rete

ntio

n

Acqu

ired

ARR

ARR

Sep

'20

New

cus

tom

ers

Net

rete

ntio

n

Acqu

ired

ARR

ARR

Dec

'20

New

cus

tom

ers

Net

rete

ntio

n

ARR

Mar

'21

New

cus

tom

ers

Net

rete

ntio

n

Acqu

ired

ARR

ARR

Jun

'21

• Organic ARR growth of 22% last 12 months

• Strong new sales

• NOK 17 million in H1’2021 compared to NOK 8 million last year

• Net retention at 99%

• Affected by DinERP churn

• 100% net retention for the House of Control core products

• Expect continued high new sales and positive net retention for remainder of 2021

Annual Recurring Revenue (ARR) bridgeNOKm


23

6

8

15

19

2016 2017 2018 2019 2020 Q2 21

ARR growth in all geographies

Norway Sweden

40

52

70

85

108

122

2016 2017 2018 2019 2020 Q2 21

23

6

8

14

18

2016 2017 2018 2019 2020 Q2 21

Denmark

28% CAGR

65% CAGR

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 Q2 21

Europe and AustraliaNOKm

63% CAGR


NOK thousand Q2 2020 Q2 2021 % H1 2020 H1 2021 % 2020Recurring revenue 26 283 38 645 47 % 51 885 73 633 42 % 117 448

Other revenue 990 1 939 1 992 6 661 7 347

Total revenue 27 272 40 583 49 % 53 877 80 294 49 % 124 795Operating costs -19 084 -40 487 -47 082 -84 913 -119 814

EBITDA 8 188 96 6 795 -4 619 4 980

EBITDA-margin 30 % 0 % 13 % -6 % 4 %

Special items 900 -3 973 -500 -7 651 -5 173

Adjusted EBITDA 7 288 4 069 7 295 3 032 10 153Adjusted EBITDA-margin 27 % 10 % 14 % 4 % 8 %

Depreciation & Amortization -3 231 -11 423 -6 364 -20 993 -22 653

Operating profit/loss, EBIT 4 957 -11 327 431 -25 612 -17 673

Net financial items -3 787 -4 439 -7 302 -10 024 -14 806

Profit/loss before tax 1 170 -15 766 -6 870 -35 636 -32 479

NOK million Q2 2020 Q2 2021 % H1 2020 Q1 2021 % 2020ARR 110 169 54% 110 169 42 146New customers, ARR 5 9 92% 8 17 115% 21

Net retention, % 99% 99% 98 % 98 % 98 %

Key figures Q2 and H1 2021

• Revenue +49% in Q2, recurring revenue 95%

• Costs driven by high investments in people

• EBITDA break-even,adj. EBITDA NOK +4.1m

• High depreciation and amortization level• Amortization of excess

value from acquisitions of NOK 4.3m million

Key figuresNGAAP accounting standard


Cash flow

• Net cash flow from operating activities NOK -25 million in H1 2021

• NWC increase of NOK 15m • Includes deferred revenues and commission costs

• Cash flow from investing activities NOK -46 million• Business Analyze acquisition • Software development

• Free cash flow hence NOK -71 million

• Cash flow from financing activities NOK -6 million• Interest payments

• Cash and cash equivalents remains solid at NOK 270 million

Cash flow H1 2021


Balance sheet

• Y/Y changes mainly reflect share issues increasing equity and cash position, and increased assets as a result of acquisitions

• Continued strong financing and liquidity position

• Equity ratio of 61%

• Cash position of NOK 270 million

• Committed capital and acquisition facility (CAF) of NOK 198 million

• Financial flexibility to continue to pursue high growth ambitions

-7

313

78

100

56

70

16

30

143

514

-10

90

190

290

390

490

Q2'20 Q2'21

Other ST liabilitiesDeferred revenueLT liabilitiesTotal equity

Assets Equity & liabilitiesNOKm

51

18633

57

58

270

143

514

-10

90

190

290

390

490

Q2'20 Q2'21

CashCurrent assetsNon-current assets


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&Aability

• Identified several attractive M&A opportunities toaccelerate growth


Clear ambitions

Net retention rate

EBITDA margin

Annual Recurring Revenue (ARR)

2025 ambitions

NOK 500m+ excluding acquired ARR

110%

40%

Organic ARR growth 30% 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 more than 1,600 CFOs across the Nordics

• 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


Appendix 01 Highlights

02 Operations

03 Financials


05 Appendix

07 Agenda

08 Agenda

09 Agenda

10 Agenda


DisclaimerThis 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 hasbeen 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 professionaladvisors 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 itssubsidiaries, 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 anyway. 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 ownanalysis 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 viewsof 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 anticipateddevelopment. 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 providesany 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 thisPresentation 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-lookingstatements 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 pressreleases.

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 theUnited 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 thisPresentation 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 nordelivery 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 ofControl 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


Q2 Q2 H1 H12021 2020 2021 2020

01.04-30.06 01.04-30.06 01.01-30.06 01.01-30.06NGAAP, All amounts in NOK thousand Unaudited Unaudited Unaudited Unaudited

OPERATING REVENUES AND EXPENSES

Recurring revenue 38 645 26 283 73 633 51 885Other operating revenues 1 939 990 6 661 1 992Total operating revenues 40 583 27 272 80 294 53 877Salaries 29 468 14 213 62 282 34 604Other operating expenses 11 019 4 871 22 631 12 478Total operating expenses 40 487 19 084 84 913 47 082

Operating profit/loss before depreciation 96 8 188 -4 619 6 795

Depreciation and amortization 11 423 3 231 20 993 6 364Operating profit/loss -11 327 4 957 -25 612 431Net financial items -4 439 -3 787 -10 024 -7 302Profit/loss before tax -15 766 1 170 -35 636 -6 870

Profit and loss


Q2 H1 FY2021 2021 2020

01.04-30.06 01.01-30.06 01.01-31.12All amounts in NOK Unaudited Unaudited AuditedOperating activitiesProfit/loss before tax -15 766 -35 635 -32 479Depreciation and impairment 11 423 20 993 22 653Change in net working capital -14 564 -10 284 4 196Other non-cash itemsNet cash flows from operating activities -18 907 -24 927 -5 630

Net cash flows from investing activities -37 293 -45 911 -23 127

Free cash flow -56 200 -70 837 -28 757

Net cash flows from financing activities -3 344 -5 893 293 828

Cash and cash equivalents at the beginning of the period 329 492 346 680 81 609

Net change in cash and cash equivalents -59 544 -76 731 265 071Cash and cash equivalents at the end of the period 269 949 269 949 346 680

Cash flow


Balance sheet - Assets

ASSETS 30.06.2021 30.06.2021All amounts in NOK thousand Unaudited UnauditedNon-current assetsDeferred tax assets 0 0Other intangible assets 184 891 50 448Total intangible assets 184 891 50 448Property, plant and equipment 799 719Other non-current assets 563 182Total non-current assets 186 253 51 350Current assetsInventories 188 219Trade receivables 13 928 5 944Other short-term receivables 43 382 27 215Current assets 57 498 33 377Cash and cash equivalents 269 948 58 302TOTAL ASSETS 513 698 143 030


Balance sheet – Equity and Liabilities

EQUITY AND LIABILITIES 30.06.2021 30.06.2020All amounts in NOK thousand Unaudited UnauditedEquityShare capital 11 412 6 409Other equity 301 095 -13 512Total equity 312 506 -7 103

LiabilitiesDeferred tax liabilities 1 247 1 884Other provisions 8 484 0Interest bearing debt 90 550 76 438Total non-current liabilities 100 281 78 322Trade payables 5 286 2 144Public duties payable 13 324 7 799Deferred revenue 69 935 56 068Other short term liabilities 12 366 5 799Total current liabilities 100 911 71 810Total liabilities 201 192 150 132TOTAL EQUITY AND LIABILITIES 513 698 143 030

Interim results Q2 and H1 2021 - houseofcontrol.com

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