Crayon Q4 2022 and year-end results: Strong growth in international markets

14 Feb 2023 07:00 CET

Crayon Group Holding ASA (OSE: CRAYN) today reported its fourth-quarter results
demonstrating resilient market demand with continued strong growth across all
regions and business areas.

Gross Profit grew with 27% compared to the same quarter last year, while
Adjusted EBITDA grew 24% to NOK 258m, reflecting a margin of 20.3%, at the same
level as the comparable period in 2021. Cashflow from operations ended at NOK
478m.

Growth was particularly strong in international markets with all markets outside
the Nordics delivering above 30% organic Gross Profit growth. International
markets now represent 59% of Gross Profit compared to 51% in 2021.

Financial Highlights Q4 2022
Gross Profit NOK 1.272m (1.006m) NOK 4.496m (3.165m)
Adjusted EBITDA NOK 258m (206m) NOK 839m (644m)

The above financials are based on restated numbers according to final
implementation of agent principle under IFRS 15.

For comparability, key figures based on historical accounting policy:

Financial Highlights Q4 2022
Gross Profit NOK 1.302m (951m) NOK 4.353m (3.040m)
Adjusted EBITDA NOK 287m (225m) NOK 890m (655m)

We refer to note 3 -significant accounting principles and note 6 - Segment
Information for further details.

“Our financial results exemplify the resilient demand we see in the market,”
said Crayon CEO Melissa Mulholland. “We continue to see incredible growth across
all our regions and business areas, based on our customer-centric business
model.

“Despite ongoing economic pressures in the tech sector, we continue to see
resiliency with our customers and partners. From requiring cloud-based solutions
to deliver increased productivity and efficiencies in their business, to the
increased need to secure their environment and digitize their data estate,”
Mulholland said.

2023 Full year guidance
- Gross profit ~20% (2022 42%)
- Adjusted EBITDA 20-21%(2022 18.7%)
- Average net working capital / gross profit –5% to –15% (2022-0.8%)
- Capex NOK 125 (2022 142m)

Background: final implementation of agent principle according to IFRS 15.
On April 20, 2022, the IFRS Interpretation Committee (IFRIC) concluded on
principal vs agent assessment under IFRS 15 for Software Resellers. The impact
for Crayon is that we for certain contracts are considered as an agent for the
software company rather than a principal, and the software company becomes our
customer rather than our vendor. Our revenues consist of our margin on the
invoices to the end user and any rebates or incentives from the software company
rather than the gross value of our invoice to the end user. Crayon must
recognize these revenues when we have fulfilled our performance obligations
towards our customer. Our performance obligation towards our customer acting as
an agent is to arrange for the sale of licenses, that will be fulfilled upon
final registration of the order, and not over the service period towards the end
user.

Investor contact:
Kjell Arne Hansen
Head of Investor Relations
ir@crayon.com
+47 950 40 372

About Crayon:
Crayon is a customer-centric innovation and IT services company with over 3,700
team members across 46 countries. We optimize businesses’ IT estate to help them
innovate with expertise they can trust. Our services create value for companies
to thrive today, and scale for tomorrow. For more information, visit
www.crayon.com.

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582254_Q4 2022 Crayon Earnings Presentation.pdf
582254_Crayon Q4 2022 Financial Report.pdf