Crayon Group (CRAYN) Investor Presentation summary

Business overview and strategy

• Over 22 years of experience in software and cloud advisory, serving 140,000 customers across 46 countries with 80% market coverage and strong public sector presence.

• Gross profit has grown at a 30% CAGR, reaching NOK 6,257m LTM Q3 2024, with 4,000+ employees and strategic partnerships with leading technology vendors.

• 56% of gross profit now comes from international markets, reflecting a successful global expansion strategy.

• Focused on scaling software and cloud business globally, expanding service upsell, and increasing recurring service offerings, supported by value-accretive M&A.

• Customer-centric approach maximizes ROI on software and cloud investments through advisory, procurement, cloud, IT cost management, and data & AI solutions.

Market positioning and competitive advantages

• Operates across three value streams: software & cloud economics, direct & channel, and consulting services, with a unique combination of scale, IP, and global reach.

• Recognized as a leader in Gartner MQ for SAM managed services, with the largest SAM team globally and 10 years of AI experience.

• Adds value for vendors and customers through substantial tech spend savings, proprietary IP solutions, global distribution, and strong bargaining position.

• Holds premier partnerships and certifications with Microsoft, AWS, Google Cloud, IBM, and others, supporting a best-in-class cloud and cybersecurity offering.

Financial performance and profitability

• Q3 2024 gross profit reached NOK 1,435m, up 14% YoY, with adjusted EBITDA margin at 17% (up 5pp), and net income of NOK 82m, a NOK 95m improvement YoY.

• Software & cloud direct business grew 28% YoY, driven by Nordics and Europe, while consulting saw improved profitability as GenAI and security services ramped up.

• All regions contributed to profit improvement, with Europe showing 23% YoY gross profit growth and APAC/MEA at 8%.

• Working capital improved significantly, with net working capital at NOK 157m in Q3 2024 and average LTM NWC as share of gross profit at -14%.

• Strong cash position with NOK 1,346m in cash and liquidity reserve of NOK 1,825m, and net debt/EBITDA reduced to 1.9x.