DATA RESPONS 4 th QUARTER 2019 Kenneth Ragnvaldsen, CEO OSLO, 30 - - PowerPoint PPT Presentation

Q4 PRESENTATION 2019

DATA RESPONS – 4th QUARTER 2019

Kenneth Ragnvaldsen, CEO

OSLO, 30 JANUARY 2020

Q4 PRESENTATION 2019

> CEO Kenneth Ragnvaldsen Rune Wahl > CFO

AGENDA

• 1. HIGHLIGHTS
• 2. FINANCIALS
• 3. BUSINESS REVIEW
• 4. Q&A

Q4 PRESENTATION 2019

HIGHLIGHTS

ALL-TIME HIGH revenue, profit and cash flow Strong GROWTH across business segments, geographical regions and vertical markets GLOBAL MEGATRENDS of digitalisation, connectivity (IoT) and automation continue to fuel the market Increasing portfolio of SUSTAINABILITY-oriented technology projects SOLID FINANCIAL POSITION with 51% equity ratio enabling further growth AKKA Technologies launched a voluntary CASH OFFER AT NOK 48 PER SHARE for all of Data Respons’ outstanding shares

Q4 PRESENTATION 2019

FINANCIAL HIGHLIGHTS FROM Q4 2019

353 437 522 100 200 400 500 300 MNOK Q4 17 Q4 18 Q4 19

REVENUES

522

EBITA

64.7

EBITA margin

12.4%

# OF EMPLOYEES

1 412

30 48 65 10 20 30 40 50 60 70 MNOK Q4 18 Q4 17 Q4 19 0% 2% 4% 6% 8% 10% 12% 14% 12,4% % 8,6% Q4 17 10,9% Q4 18 Q4 19 400 800 1 200 1 600 Q4 17 Q4 14 Q4 15 Q4 16 Q4 18 Q4 19

# of own employees # of subcontractors

Q4 PRESENTATION 2019

All numbers are full year figures

Denmark 11% Norway 19% Sweden 42% Germany 28% Germany Norway Sweden Denmark INCREASED REVENUE R&D Services 70% Solutions 30%

GROWTH

in both business areas

GROWTH

in all countries

SWEDEN

largest marked

Q4 PRESENTATION 2019

¹ EBITA before corporate costs

KEY FIGURES – R&D SERVICES

• STRONG GROWTH (24% Quarter - 30% 2019)

driven by solid performance across all portfolio companies and cross-selling synergies

• SOLID PROFITABILITY supported by high

utilization and several and business critical, long- term R&D projects

• Increasing level of RECURRING R&D SERVICES
• Market remains attractive with continued SOLID

DEMAND driven by across industry trends:

– Industrial digitalisation (Industry 4.0) – Intelligence of Things (IoT), Connectivity – More data driven and SW oriented products and services – Analytics – Artificial Intelligence (AI)

224 314 388 100 200 300 400 MNOK Q4 17 Q4 18 Q4 19

REVENUES

388

EBITA¹

59.6 (15.4%)

10 20 30 40 50 60 48.1 29.2 MNOK Q4 18 Q4 17 Q4 19 59.6

Q4 PRESENTATION 2019

¹ EBITA before corporate costs

KEY FIGURES – SOLUTIONS

• SOLID GROWTH (8% Quarter - 16% 2019)

driven by strategic shift towards smarter, connected and high-end solutions

• INCREASED PROFITABILITY resulting from a

strategic shift towards high-end solutions and increased SW content, continued focus on value- adding services and cost discipline

• WELL DIVERSIFIED in terms of markets, regions

and customers

130 128 138 50 100 150 200 MNOK Q4 17 Q4 18 Q4 19

REVENUES

138

EBITA¹

19.1 (13.9%)

5 10 15 20 25 11.9 MNOK Q4 17 Q4 19 Q4 18 15.7 19.1

Q4 PRESENTATION 2019

KEY FIGURES FULL YEAR

964 1 040 1 242 1 488 1 867 500 1 000 1 500 2 000 MNOK 2015 2016 2017 2018 2019 +18%

REVENUES

1 867

EBITA

216.2 (11.6%)

50 100 150 200 250 2017 2019 70.7 2015 2018 MNOK 2016 142.8 98.6 55.2 216.2 +41%

Q4 PRESENTATION 2019

All numbers are 2019 figures

DIVERSIFIED CUSTOMER PORTFOLIO

FINANCE & PUBLIC 4% TELECOM & MEDIA 17% MOBILITY 37% INDUSTRY & AUTOMATION 13% ENERGY & MARITIME 11% SPACE, DEFENCE & SECURITY 10% OTHER 1% MEDTECH 6%

STRONG DIVERSIFICATION

across several industries

CUSTOMER & TECHNOLOGY DRIVEN ORGANISATION

Building long-term customer relationship based on strong industry know-how, niche competence and local touch

18% 25% 39%

Top 3 customers Top 10 customers Top 5 customers

Q4 PRESENTATION 2019

ALL-TIME HIGH ORDER INTAKE Confirming overall demand and strategic positioning

• R&D - Product development
• Business critical
• Long-term R&D projects
• Strategically important
• Domain COMPETENCE & industry

knowhow Next Gen COMMUNICATION SOLUTION

in the space, defence and security industry

• f NOK 38 million

Digitalisation and MACHINE LEARNING

in the German banking sector of NOK 15 million

Data driven DEVELOPMENT support

Contract in Germany of NOK 225 million

5G INFRASTRUCTURE for IoT applications

Contracts in Sweden of SEK 75 million

2018 2017 0.9 2009 2014 2015 2016 2020 3.8 4.9 6.4 8.4 11.2 20.0

Embedded

sensors AI

Technology innovation enabling

CONTINUED IoT GROWTH

Cloud

computing Source: Gartner

# of IoT devices

5G

100x faster than 4G Low network latency (real time) Prioritised (layers) Lower power consumption

Big Data

analytics

Edge

devices

Narrow band reducing power consumption Increased processing power (Unlimited) data storage Significant cost reduction Significant processing power Integration to cloud Security standards Simplified standards

Q4 PRESENTATION 2019

We develop everything from SENSOR LEVEL to the MOBILE APP making us a good partner for your DIGITALISATION

IoT Endpoints IoT Infrastructure Internet Infrastructure Cloud Devices

Sensors/ actuators Routers & Gateways

LAN/ Edge routers

IoT Software & apps IoT Platform

RFID Z-Wave Java IPv6

MQTT

ZigBee

NFC

BLE

WiFi

LPWAN

RPL AMQP XMPP

HTTPS HTTP WPA2 Authentication Encryption Port protection

UI/UX

PPSK TLS

Python

C

C++

C#

Analytics AI

Q4 PRESENTATION 2019

IMPROVING WINDWILLS WITH

SOFTWARE

OPTIMISING USE INCREASING PROFITABILITY REDUCING BUILDING COST INCREASING LIFETIME Data Respons case example

Q4 PRESENTATION 2019

IoT

In-vehicle infotainment system Embedded Software Autonomous driving Sensors SW Frameworks AI/Analytics New Telematics solutions Connectivity Remote SW update Security Condition monitoring Fleet Management systems Testing Digitalisation of the Product Development Cycle Car sharing User based insurance Car-as-a-service

CARS ARE BECOMING COMPUTERS ON WHEELS

APPS AND SERVICES DATA ANALYTICS ENTERTAINMENT PLATFORM AUTONOMOUS DRIVE/OPERATING SYSTEM

Q4 PRESENTATION 2019

Source: Deloitte 2019 Global Automotive Supplier Study | Slide 15

POSITIONED IN THE ATTRACTIVE SEGMENTS

Data Respons involved in several projects across all growth segments

Fleet Management systems In-vehicle infotainment systems New telematics solutions Car sharing applications Electric and hybrid drivetrain technology Connectivity and remote SW update solutions Autonomous driving projects (ADAS) Car-as-a-service projects

Q4 PRESENTATION 2019

At 19 December 2019, AKKA Technologies SE launched a voluntary cash

• ffer at NOK 48 per share for all of Data Respons’ outstanding shares
• Offer price of NOK 48 per share settled in cash, which corresponds to an equity value of DAT of NOK 3.7 Billion
• The Board of Directors of DAT unanimously recommended the offer. DAT shareholders representing 43% of the shares have

given pre-acceptance to the offer, subject to customary conditions

• The Offer is subject to customary regulatory approval in Germany and 90% acceptance rate from DAT shareholders. The

complete terms and conditions for the Offer, including procedures for how to accept the Offer and detailed information regarding settlement, are set out in the Offer Document published 13 January 2020.

• The Offer period is from 13 JANUARY

UARY 2020 UNTIL 10 FEBRUAR RUARY Y 2020 at 16:30 CET. The Offeror may extend the offer period.

VOLUNTARY CASH OFFER FROM AKKA TECHNOLOGIES

Q4 PRESENTATION 2019

> CEO Kenneth Ragnvaldsen Rune Wahl > CFO

AGENDA

• 1. HIGHLIGHTS
• 2. FINANCIALS
• 3. BUSINESS REVIEW
• 4. Q&A

Q4 PRESENTATION 2019

• 1. Social security tax accrual related to the company`s employee share option scheme of NOK 5.5 million was booked in Q4 2019
• 2. A provision for bad debt of NOK 8 million on a trade receivable from 2017 was recognised in Q4 2019
• 3. Transaction costs of NOK 7.1 million are expensed in 2019, of which NOK 1.2 million in Q4 2019
• 4. The increase in depreciation of NOK 8.8 million in Q4 (and NOK 32.5 million in 2019) is mainly related to the implementation of IFRS 16 in 2019.

INCOME STATEMENT

NOK MILLION

Q4 19 Q4 18 % 2019 2018 % Revenues 521.6 436.7 19 % 1 866.5 1 488.0 25 %

Cost of goods sold 214.9 190.0 835.5 699.6 Payroll expenses 1 198.5 161.6 683.4 544.4 Other operating expenses2 3 33.2 35.9 93.0 96.6 Depreciation4 10.2 1.5 38.4 4.7

EBITA 64.7 47.8 35 % 216.2 142.8 51 %

EBITA % 12.4% 10.9% 11.6% 9.6% Amortisation and impairment of intangible assets 8.3 5.5 27.3 18.6

Operating profit (EBIT) 56.4 42.3 34 % 188.9 124.2 52 %

Net financial items (5.1) (26.1) 6.9 (29.1)

Profit before income tax 51.3 16.2 195.8 95.1

Income tax expense 17.8 15.7 49.6 35.3

Profit for the period 33.5 0.4 146.1 59.7 Basic earnings per share (NOK) 0.39 (0.03) 2.02 0.98

Q4 PRESENTATION 2019

KEY FIGURES PER BUSINESS SEGMENT

LTM EBITA MARGIN

14.3%

NOK MILLION

Q4 19 Q4 18 % 2019 2018 % Revenue 387.5 313.5 24 % 1 316.5 1 009.8 30 % EBITA1 59.6 48.1 24 % 188.7 127.1 49 % EBITA margin1 15.4 % 15.3 % 14.3 % 12.6 % Employees 917 685 917 685

Q4 17

14.3%

Q4 18

12.6% 11.5%

Q4 19

NOK MILLION

Q4 19 Q4 18 % 2019 2018 % Revenue 137.5 127.7 8 % 564.3 488.3 16 % EBITA1 19.1 15.7 21 % 68.9 47.1 46 % EBITA margin1 13.9 % 12.3 % 12.2 % 9.6 % Employees 83 84 83 84

Q4 18 Q4 17

7.3%

Q4 19

9.6% 12.2%

LTM EBITA MARGIN

12.2%

R&D Services Solutions

1 EBITA before corporate costs

Q4 PRESENTATION 2019

REVENUE GROWTH QUARTERLY

TOTAL GROWTH

19%

TOTAL ORGANIC GROWTH

10%

ORGANIC R&D SERVICES

10%

ORGANIC SOLUTIONS

8%

Q4 19 19% Q4 18 Growth Q4 18 Q4 19 10% Growth 10% Q4 18 Q4 19 Growth Q4 18 Q4 19 8% Growth

Q4 PRESENTATION 2019

REVENUE GROWTH ANNUALY

TOTAL GROWTH

25%

TOTAL ORGANIC GROWTH

12%

ORGANIC R&D SERVICES

11%

ORGANIC SOLUTIONS

16%

2018 25% Growth 2019 2019 2018 Growth 12% 16% 2018 Growth 2019 2018 11% Growth 2019

Q4 PRESENTATION 2019

REVENUE GROWTH ANNUALY – PER COUNTRY

SWEDEN

14%

GERMANY

45%

NORWAY

21%

DENMARK

34%

781 2019 2018 14% Growth 542 2018 2019 45% Growth 197 2019 2018 34% Growth 347 21% 2018 Growth 2019

Q4 PRESENTATION 2019

KEY FIGURES FULL YEAR

964 1 040 1 242 1 488 1 867 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 MNOK 2015 2016 2017 2018 2019 +18%

REVENUES

1 867

EBITA

216.2 (11.6%)

50 100 150 200 250 2017 MNOK 2015 2019 2016 2018 55.2 70.7 98.6 142.8 216.2 +41%

Q4 PRESENTATION 2019

KEY FIGURES LTM

LTM REVENUE

1 867

LTM EBITA

216.2

LTM EBITA MARGIN

11.6%

1 242 1 488 1 867 500 1 000 1 500 2 000 Q4 17 MNOK Q4 18 Q4 19 50 100 150 200 250 Q4 17 142.8 MNOK Q4 18 Q4 19 98.6 216.2 2 4 6 8 10 12 9.6 7.9 % Q4 17 Q4 18 11.6 Q4 19

Q4 PRESENTATION 2019

FINANCIAL POSITION

• CASH POSITION

NOK 128 million (82)

• INTEREST-BEARING LOANS

NOK 69 million (278)

• EARN-OUT LIABILITIES

NOK 395 million (378)

• EQUITY RATIO

51% (33%)

• LEVERAGE RATIO LTM
• 0.2 (1.2)

1 057 543 69 278 395 378 91 471 438 Equity Dec 19 Dec 18 Lease liabilities Interest-bearing loans Earn-out liabilities Other liabilities 2 083 1 637 1 088 1 463 441 459 82 128 Receivables Cash Non-current assets 26 Dec 18 Dec 19 Inventories 1 637 33 2 083 ASSETS EQUITY & LIABILITIES

Q4 PRESENTATION 2019

CASH DEVELOPMENT 2019

82 128 203 271 275 453

Cash flow -

• perating

activities Cas ash 1.1 Cash flow - investing activities Dividends

64

Issue of shares Other financing activities Cas ash 31.12

• OPERATING CASH FLOW

2019: NOK 203 million Q4: NOK 74 million

• ACQUISTIONS

NOK 268 million

• DIVIDENDS

NOK 64 million

• ISSUE OF SHARES

NOK 453 million

Q4 PRESENTATION 2019

CASH FLOW AND FINANCIAL POSITION

NOCF (LTM)

203

INTEREST-BEARING LOANS

69

EQUITY RATIO

51%

79 78 63 203 50 100 150 200 250 300 Q4 19 MNOK Q4 16 Q4 17 Q4 18 95 278 69

• 0,5

0,0 0,5 1,0 1,5 2,0 2,5 3,0 50 100 150 200 250 300 Q4 17 MNOK Q4 16 Q4 19 Q4 18 170 INTEREST-BEARING LOANS LEVERAGE RATIO LTM 20 30 40 50 60 33% Q4 18 % Q4 17 Q4 16 Q4 19 36% 30% 51%

Q4 PRESENTATION 2019

KEY FIGURES PER SHARE

NOCF PER SHARE

2.69

EPS

2.02

DIVIDEND PER SHARE

0.00 3.00 0.50 2.50 1.00 2.00 1.50 NOK 2018 2014 2015 2016 2017 2019 2.69 0.00 1.50 0.50 1.00 2.00 2.50 3.00 NOK 2.02 2014 2017 2015 2016 2018 2019

Due to the current offer from AKKA Technologies and in accordance with the Offer Document published 13-Jan-2020, the Board of Directors in Data Respons has not made any proposal for dividends for 2019.

Q4 PRESENTATION 2019

> CEO Kenneth Ragnvaldsen Rune Wahl > CFO

AGENDA

• 1. HIGHLIGHTS
• 2. FINANCIALS
• 3. BUSINESS REVIEW
• 4. Q&A

Q4 PRESENTATION 2019

A complete technology partner

for smarter embedded and IoT solutions

• Digitalisation of the industries of tomorrow!

Connectivity IoT / Digitalisation Software & APPs Security Embedded Solutions R&D Services AI / Analytics Sensor Mobile services Electrification Cloud

Q4 PRESENTATION 2019

Strategic TECHNOLOGY PARTNER

R&D → Product DEVELOPMENT Core offering of the customer – BUSINESS CRITICAL Domain COMPETENCE & industry knowhow Multi discipline SPECIALIST teams LONG TERM development projects

Q4 PRESENTATION 2019

EVERYTHING DIGITALISED, CONNECTED, AUTOMATED EVERYWHERE

Q4 PRESENTATION 2019

STRONG DIVERSIFICATION

across several industries

SOLID CUSTOMER LIST

ENERGY & MARITIME 11% TELECOM & MEDIA 17% MOBILITY 37% INDUSTRY & AUTOMATION 13% SPACE, DEFENCE & SECURITY 10% MEDTECH 6% FINANCE & PUBLIC 4% OTHER 1%

Q4 PRESENTATION 2019

The number of specialists and their competence is CONSTANTLY DEVELOPING

Keeping every specialist in a customer driven R&D projects today and tomorrow creates continuously changes, and a market oriented competence structure

1 400

ENGINEERS

Crypto Computing Connectivity Wearables Digitizing Bid Data Database Cloud Digital mesh Security Autonomy Robotizing Power Sensors 3D printing Digital twin AI / Virtual reality IoT

METHODOLOGY AND TOOLS

Smart homes Smart cities Smart transportation Industry 4.0

MARKETS

Digital finance systems Sweden Germany Denmark Norway Smart logistics Digital ships E-health Smart grids

CUSTOMERS

Real-time OS Device management Low power FPGA Processors Wireless SoC Communication Analogue HW development .NET C/C++ Java UML UX/IX Protocols Digital HW development Qt/QML

1 000+

CUSTOMER PROJECTS

TECHNOLOGY COMPETENCE

300 NEW specialists IN 2019

Q4 PRESENTATION 2019

ACQUSITIONS

Proven track record

FILLING GAP in our specialist and technology competence ACCESS to strategic customer portfolios and markets FOCUS on R&D Services: SW, IoT, industrial digitalisation and embedded technologies PROVEN TRACK RECORD, accretive financials, Nordic/Germany 2007 2010 2016 2017 2018 2019

SYLOG TECHPEOPLE MICRODOC EPOS IT SONIX DONAT GROUP XPURE INCONTEXT

19 COMPLETED TRANSACTIONS

2005

Q4 PRESENTATION 2019

SUSTAINABILITY THROUGH TECHNOLOGY

Mapping CO2 footprint and sustainability risks 75 sustainability projects by 2020 The group will be CO2 neutral by 2025

Q4 PRESENTATION 2019

Co2 NEUTRAL BY 2025

Our footprint 2018

1385 tons Co2

the yearly emissions

• f 691 cars

the annual emissions

• f 138 Norwegians

37 % from transportation of goods 34 % from transportation of people 20 % from energy 9 % from IT equipment

• Introduce carbon budgets
• Use more maritime shipping
• Electric vehicles
• Switch to green electricity
• Sustainable IT equipment policies

ACTIONS

Q4 PRESENTATION 2019

2019: A RECORD YEAR FOR SUSTAINABLE TECH

REDUCING EMISSIONS through digitialisation Software & sensors for BETTER RECYCLING Software for ENERGY SAVING STREET LIGHTING Mesh tech for Improved EMERGENCY COMMUNICATION Software for SAFER & EFFICIENT WIND TURBINES Safety through RADON SENSORS SMARTER CHARGING With software Scanning for epilepsy using SMART PHONE APPS IMPROVING FIRST AID EDUCATION with tech REDUCING EMISSIONS through digitialisation Facilitating the SMART GRID TRANSITION through software Sensors provide more SUSTAINABLE LIVE STOCK PRODUCTION

Q4 PRESENTATION 2019

REVENUE

17 17% %

annual growth

2000-2019

• 100

100 300 500 700 900 1 100 1 300 1 500 1 700 1 900 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

LONG TERM GROWTH continues

20 20x x

2000-2019

Q4 PRESENTATION 2019

SUMMARY

• 1. ATTRACTIVE market opportunity
• 2. STRONG customer list
• 3. TECHNOLOGY and competence
• 4. VALUE ADDING acquisitions
• 6. LONG TERM growth track record
• 5. SUSTAINABILITY through technology

Q4 PRESENTATION 2019

> CEO Kenneth Ragnvaldsen Rune Wahl > CFO

AGENDA

• 1. HIGHLIGHTS
• 3. FINANCIALS
• 3. BUSINESS REVIEW
• 4. Q&A

Q4 PRESENTATION 2019

LOCATIONS

NORWAY

5

LOCATIONS

DENMARK

2

LOCATIONS

GERMANY

7

LOCATIONS

SWEDEN

3

Our companies:

AT A GLANCE

I.9 billion NOK 1 400 specialists >1 000s R&D projects 40 nationalities

TAIWAN

Q4 PRESENTATION 2019

t

CUSTOMER & TECHNOLOGY DRIVEN ORGANISATION

Building long-term customer relationship based on strong industry know-how, niche competence and local touch

LEADING SPECIALIST COMPETENCE

Continue developing

• ur employees & adding

new talent in a people centric culture

• the core asset of the

company

COMPLETE TECHNOLOGY PARTNER

R&D development, SW/HW technology, industrial digitalisation, Internet of Things (IoT) and high-end embedded solutions

THE NORDICS & GERMANY

Well driven group companies with a clear plan, decentralised org. structure and empowered mgmt. & employees

ORGANIC GROWTH & VALUE CREATING M&A’s

Long term growth focus built on strong

• perational execution,

industry diversification, and across company synergies

SUSTAINABILITY THROUGH TECHNOLOGY

Based on innovative technology projects, a companywide sustainable focus and committed employees

OVERALL STRATEGY

2001-2018

+17%

CAGR

Q4 PRESENTATION 2019

We live OUR VALUES Every day!

TO PERFORM RESPONSIBILITY BEING GENEROUS HAVING FUN