Sikri Group ASA: Fourth quarter 2022 results

16 Feb 2023 07:00 CET

Oslo, 16 February 2023. Sikri Group ASA (or “the company") increased revenues by
72 percent in the fourth quarter 2022 compared to the same period last year to
NOK 272 million, primarily driven by the acquisition of Metria in the second
quarter of 2022. On a currency neutral proforma basis, the company saw
operational organic growth of 4 percent.

Adjusted EBITDA was NOK 48 million in the fourth quarter 2022, representing 18
percent adjusted EBITDA margin, unchanged compared to pro forma adjusted EBITDA
in the same period in 2021.

“We are rapidly developing towards a more pure-play Software-as-a-Service
company. At the end of the quarter, our annual recurring revenue (ARR) reached
373 million, up 8 percent compared to one year earlier. This means that our
business has a high degree of scalability and high predictability,” said CEO of
Sikri Group, Nicolay Moulin.

In the quarter, Sikri Group raised gross proceeds of NOK 100 million of new
equity in a private placement. In November, the company divested
Prognosesenteret, focusing the group’s structure and freeing up further capital.
“During 2022, we have improved our financial position considerably and we have a
strong platform for organic growth driven by cross border synergies, new
products as well as new sales and upsell,” Nicolay Moulin said.

Sikri Group experience high digitalization activity in in the public sector and
reported 61 percent win-rate in the contract competition where the company
participates in Norway. 75 percent of Sikri Group's revenue are recurring and
recurring-like, and in the public segment, the annual churn rate is less than 1
percent.

“45 percent of our revenue comes from customers in the public sector, and in the
fourth quarter our Public segment continued to perform particularly well as a
result of major customer wins. Revenue growth was 17 percent, and the adjusted
EBITDA margin was 28 percent. Our Private and Metria segments are still
sensitive to the volume of real estate transactions, but even in a turbulent
quarter, both segments continued to grow,” said Moulin.

Sikri Group ASA acquired the Swedish company Metria AB earlier in 2022 and has
since then worked to confirm the synergy assumptions and to plan the
integration. During the quarter, Metria signed long-term contracts with the
Swedish Environmental Protection Agency worth SEK 430 million.

“These are landmark contracts, and we are also happy to see the synergy
potential between Metria and our Norwegian businesses. We are building a strong
sales organization across the group and seek to execute on the synergy
potential. The strong tail wind from the digitization of public and private
transaction processes continues,” said Moulin.

Financial highlights for the quarter:
* Proforma operational organic growth of 4% when neutralizing currency impacts
* Adjusted EBITDA for Q4 2022 was MNOK 48, up from MNOK 27 in Q3 2021, mainly
due to the acquisition of Metria AB and higher subscription revenue in Public
* Annual recurring revenue (ARR) within the Group increased to MNOK 373 at the
end of Q4 2022, up 8 percent from Q4 2021
* Net profit was NOK 44 million, affected by net financial loss of 15 million
and a capital gain of NOK 49 million related to the divestment of
Prognosesenteret.
* In Q4 2022, Sikri Group completed a private placement of MNOK 100
* Repaid borrowings of MNOK 181 during Q4 2022

***
Investors, analysts and media are welcome to follow a webcast presentation of
the results today at 08:00. The presentation will be held by CEO Nicolay Moulin
and CFO Camilla Aardal.

The presentation will be followed by a Q&A session, and viewers are encouraged
to submit written questions during and after the presentation through the
webcast player.

Webcast link:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20230216_1

The report and presentation are available for download from
https://sikrigroup.com/reports-and-presentations and www.newsweb.no.

The webcast will be available for replay immediately after the live stream is
concluded.

For further queries, please contact:

Nicolay Moulin
Chief Executive Officer
Tel: +47 90 59 19 83
Email: Nicolay.moulin@sikri.no

Camilla Aardal
Chief Financial Officer
Tel: +47 97 10 51 55
Email: Camilla.aardal@sikri.no

About Sikri Group ASA
Sikri Group is a software house providing highly specialized software and
services towards the public sector and a leading company within property data,
property technology and data economics in the Nordics. Our customer base spans
public sector as well as private businesses within real estate, banking,
insurance, property developers, media companies, builders, property owners,
taxation companies, engineers, power companies and building materials
production. We create value for public sector, private businesses, and citizens,
with an innovative approach to the use of data and data analysis. Our ambition
is to build the leading Nordic ecosystem for public administration, property
technology, analysis and data.

More information:
Access the news on Oslo Bors NewsWeb site

582578_Sikri Q4 2022 Presentation.pdf
582578_Sikri Q4 2022 Report.pdf