Crayon Group Holding ASA — Q4 2024 Earnings Presentation
23 slides from Crayon Group Holding ASA's earnings presentation, Feb 12, 2025
Slide 1: Quarterly Results Q4 2024
Quarterly Results Q4 2024 Melissa Mulholland, CEO Brede Huser, CFO 12th February 2025
Slide 2: Disclaimer
Q4 2024 Disclaimer The statements contained in this presentation may include forward-looking statements, such as statements of future expectations regarding the Company's results of operations, financial condition, liquidity, prospects, growth and strategies. These statements are based on the manage
Slide 3: 2024 Review: Strong profitability and cash flow – growth below ambitions
2024 REVIEW Strong profitability and cash flow – growth below ambitions Gross Profit Adjusted EBITDA Operating Cash Flow NOK 6 283 bn NOK 1 174m NOK 1 299m +11% YOY +28% YOY - NOK 114m YOY 6 283 1 174 1 413 5 662 1 299 919 4 496 839 3 164 644 25 102 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022
Slide 4: Q424 Gross Profit impacted by unexpected December shortfall
Q4 HIGHLIGHTS Q424 Gross Profit impacted by unexpected December shortfall Amounts in NOK Weak Gross Profit performance 1,637m Gross Profit +2% growth Profit expansion as international markets scale and Consulting improves 19.6% Adj. EBITDA Margin 1 5 pp increase Record setting Net Working Capital Ne
Slide 5: Q424 Gross Margin a clear outlier
FINANCIAL REVIEW Q424 Gross Margin a clear outlier NOK bn 18 7,8 7,8 7,6 7,4 7,2 16 6,1 6,1 6,0 14 5,8 5,7 5,6 5,6 12 10 8 6 4 2 0 Q1 2022 Q1 2023 Q1 2024 Q2 2022 Q2 2023 Q2 2024 Q3 2022 Q3 2023 Q3 2024 Q4 2022 Q4 2023 Q4 2024 Gross Margin % * Gross Sales (NOK bn.) * * Software and Cloud Direct and
Slide 6: Q424 Software and Cloud Gross Profit drivers
FINANCIAL REVIEW Q424 Software and Cloud Gross Profit drivers Significant public sector wins Enterprise Agreements Enterprise Software • Secured several strategic public • Both the market and Microsoft • Weak pipeline execution sector wins adapting to incentives changes • Lack of usual end of year s
Slide 7: Optimizing License Management for Orkla with Crayon's Expertise
STRATEGY AND AMBITION Optimizing License Management for Orkla with Crayon’s Expertise Location: Norway Utilizing the full capabilities of Crayon Industry: Consumer Goods Software procurement Cybersecurity Microsoft and advisory 15+ years >20 IBM Adobe Compliance Relationship with different software
Slide 8: Steady profit expansion
MARKET DYNAMICS Steady profit expansion Software and Cloud Services +9% Gross Profit Gross Profit +15% MNOK MNOK 2 636 3 470 +7% 2 411 +7% 3 014 MNOK 671 719 851 907 Q423 Q424 LTM Q423 LTM Q424 Q423 Q424 LTM Q423 LTM Q424 EBITDA EBITDA Margin 1 50% 59% 50% 56% -1% 10% 4% 7% Margin 1 • Competitive ma
Slide 9: Strong improvement in Consulting profitability
FINANCIAL REVIEW Strong improvement in Consulting profitability Q4 Gross Profit by business area Q4 Adj. EBITDA by business area NOK million NOK million 499 12 1 637 68 153 6 219 386 267 321 640 -292 SW & SW & SCE Consulting HQ/ Q4 2024 SW & SW & SCE Consulting HQ/ Q4 2024 Cloud Cloud Elim Cloud Clo
Slide 10: Strong improvement in Adjusted EBITDA
FINANCIAL REVIEW Strong improvement in Adjusted EBITDA Q4 Gross Profit by market cluster Q4 Adj. EBITDA by market cluster NOK million NOK million 178 28 1 637 76 3 374 321 67 -43 395 218 662 Nordics Europe APAC US HQ/Elim Q4 2024 Nordics Europe APAC US HQ/Elim Q4 2024 & MEA & MEA Growth EBITDA 33% 1
Slide 11: Positive development on Philippines receivable
FINANCIAL REVIEW Positive development on Philippines receivable Context Progress • Outstanding amounts relates to Microsoft software licenses • Crayon has been requested by Microsoft to file a Money and cloud consumption agreement starting in 2021 with Claim with Commission of Audit. The process wil
Slide 12: Financial Review
@ Crayon Financial Review
Slide 13: Strong year end working capital performance
FINANCIAL REVIEW Strong year end working capital performance Net working capital Q4 2024 Net working capital over time NOK million NOK million 905 Accounts receivable 10,112 157 Accounts -121 -218 -132 payable -11,313 Trade working -1,121 -1,085 capital -1,201 -1,403 -1,473 Q4 22 Q1 23 Q2 23 Q3 23 Q
Slide 14: Profit and loss – Q4 2024
FINANCIAL REVIEW Profit and loss – Q4 2024 NOK million Q4 2024 Q4 2023 2024 2023 Gross Sales 15 990 12 472 59 601 49 077 • EBITDA adjustments include NOK 6m in share-based Revenue 1 843 1 805 7 012 6 397 compensations , NOK 17m M&A cost and NOK 12m Cost of sales -206 -193 -729 -735 related to close
Slide 15: Balance sheet – Q4 2024
FINANCIAL REVIEW Balance sheet – Q4 2024 Dec 31 Dec 31 Dec 31 Dec 31 Assets 2024 2023 Equity and liabilities 2024 2023 Goodwill 3 331 3 262 Shareholders' equity 2 955 2 479 Other intangible assets 613 660 Interest bearing liabilities 1 185 1 792 Deferred tax asset 170 117 Deferred tax liabilities 16
Slide 16: Robust financial position
FINANCIAL REVIEW Robust financial position Cash flow from operating activities NOK million 2,117 1,889 478 599 Cash flow from operations driven 69 158 97 by changes net working capital -955 -1,286 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q324 Q424 LTM cash development NOK million 313 -150 Strong ca
Slide 17: 2025 Outlook
2025 OUTLOOK 2025 Outlook Medium 2024 2025 Comment term 2025 outlook implies organic growth Gross Profit growth 11% 15-20% ~20% in line with medium-term outlook Gradual Continuing growth while also improving Adj. EBITDA margin 1 18.7% 19-22% increase to profitability 25% Expected to normalize medium
Slide 18: Clear path towards delivering on 2025 Gross Profit ambition
SUMMARY AND OUTLOOK Clear path towards delivering on 2025 Gross Profit ambition ILLUSTRATIVE 15-20% • Grow CSP • CSP & AWS expansion • Global FinOps platform • Cloud migration and Growth • Public sector wins • Enterprise SW Capabilities • CSP conversion drive cost modernization tied to enablers • Ex
Slide 19: Combining two leading global providers of software and cloud solutions
Combining two leading global providers of software and cloud solutions
Slide 20: Strong strategic rationale for Crayon joining forces with SoftwareOne
Strong strategic rationale for Crayon joining forces with SoftwareOne Complementarity geographical footprint and offering, with access to new markets , enterprise capabilities and broader portfolio Increased strategic importance to vendors Access to scalable delivery model and transactional platform
Slide 21: Summary
(e/a) Summary
Slide 22: 2025 ambitions
STRATEGY AND AMBITION 2025 ambitions Growth Acceleration Profitability improvement Cash Generation
Slide 23: Crayon Earnings Q4 2024 Q&A
CRAYON EARNINGS Q4 2024 Q&A 23