Klappir Grænar Lausnir (KLAPP) Investor Update summary

H1 2024 operating and financial performance

• Subscription revenue increased 21.8% YoY; ARR was ISK 385.5m. Net revenue was ISK 271.4m as reported, with ISK 297.4m under the new accounting basis vs ISK 277.8m in 1H 2023 (+7.1%).

• EBITDA was ISK 58.0m (19.5% margin) vs ISK 43.6m (15.7%); EBIT was ISK 31.6m vs ISK 6.1m, up 415.1% YoY.

• Net profit was ISK 15.6m vs ISK 7.0m, up 121.3% YoY; cash and cash equivalents were ISK 158.5m at period-end.

• Total assets were ISK 840.6m vs ISK 683.8m; liabilities were ISK 447.3m vs ISK 303.8m; equity ratio was 46.8% vs 55.6%.

• Revenue improvement reflected subscription growth and cost discipline, including more efficient product development, less consultant reliance and a lower sales and marketing cost ratio relative to sales results.

Product and market expansion

• The partner network grew to 24 partners, expanding marketing reach; strategic expansion is targeting EU opportunities alongside partners.

• Product releases addressed sustainability regulatory frameworks, including CSRD; a new Customer Success portfolio was aligned with Platform subscription plans.

• R&D focused on capabilities for CSRD and ESRS compliance; the Platform supports sustainability data accounting, reporting and sharing across value chains.

• Standard, Premium and Enterprise plans span ESG metrics for own operations through CSRD/ESRS metric and narrative disclosures; Enterprise includes cross-cutting standards and impact, risk and opportunity tools.

• A global sustainability software market valued at USD 10.61bn in 2023 was projected to reach USD 27.37bn by 2032, with a stated 11.1% CAGR for 2024–2032.

Strategy and governance

• Priorities are continued innovation, stronger customer success and sustainability, and using partners to pursue growth opportunities; customer feedback is being incorporated into services and product development.

• A dual listing in another Nordic country is under consideration to strengthen Nordic presence and broaden access to sustainability-focused investors.

• Platform sustainability data processes are described as ISAE 3000/Type 2 verified, supporting data integrity, traceability and auditability.