Omda : Q1 2024 Report

Quarterly Report	Q1 2024

About Omda | Q1 2024

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Omda is the leading provider of specialised software for healthcare and emergency response in the Nordics, with a growing presence in Europe, North America, and the Pacific region. We have more than 500 customers in 27 countries and employ almost 300 dedicated specialists. Our highly specialised healthcare solutions empower medical professionals and emergency responders, enabling them to know more and work smarter. With a focus on user-centric design, value-driven development, and close working relationships with customers, Omda delivers solutions that enhance patient safety and improve healthcare outcomes.

Through our focused mergers and acquisitions strategy, we have built a unique blend of best-in-class innovative technology and outstanding expertise. We build long-term relationships with our customers, helping them achieve their goals, and knowing that our growth is earned by consistently delivering secure, quality software services.

Our portfolio of leading solutions encompasses the following domains:

	Connected Imaging	Laboratory Information
Emergency	Leading imaging solutions and	Management Systems
Robust systems for managing every	secure information sharing to	End-to-end blood, cell,
aspect of emergency response.	enhance collaboration across	and tissue management.
	healthcare domains.

Medication Management	Health Analytics	Woman & Child
Decision support and medication	Improving the quality, utility, and	Trusted solutions to safeguard
management for safe and effective	management of medical data from	pregnancy, childbirth,
oncology treatments.	collection to analysis.	and infancy.

Omda aims to continue its growth, both organically and through targeted mergers and acquisitions. We position for the future by investing profits in our portfolio of products and services and creating an inspiring work environment, while always operating as a responsible business within the global community.

Omda's headquarters are in Oslo, Norway and our employees are located in ten countries across Europe, North America, Oceania and Asia.

Omda is listed on the Oslo Stock Exchange, Euronext Growth (OMDA) and the bond is listed on Nordic ABM and Frankfurt Open Market. For more information on Omda, please visit omda.com.

Our Vision	Our Mission	Our Values
Smarter ways to a safe	Providing proven, focused software	We are user centric, ambitious,
and healthy world.	for health and emergency professionals	curious, and collaborative.
	to know more and work smarter.

Highlights | Q1 2024

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Highlights

Q1-24 total income 106 MNOK vs 102 MNOK in Q1-23

Reported EBITDA was 15 MNOK resulting in a 14% EBITDA margin for Q1-24, compared to 5% in Q1-23

Recurring revenue of 83 MNOK vs 79 MNOK in Q1-23, accounting for 79% of total sales

Q1-24 organic growth of 5% in local currency vs Q1-23 (7% in NOK)

Gross margin of 93% compared to 92% in Q1-23

Introduction | Q1 2024

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Introduction

Reported income in the first quarter reached NOK 106 million, a 3% increase compared to Q1-23. This upward trajectory is further evident in our recurring revenue, which grew from NOK 79 million in Q1-23 to NOK 83 million in the corresponding period this year. Our organic growth remains within our projected range of 5-10%.

EBITDA for the quarter reached 14%, marking an expected improvement over the 5% reported in Q1-23. Our three cost areas - COGS, Personnel Expenses and Other Costs - all show a downward trend compared to the same quarter last year.

We anticipate the completion of the MDR certification project (EU's Medical Device Regulation) in H1-24, a project that has demanded significant internal resources across all business areas, as well as one-off costs for external auditors. The MDR certification provides value for Omda in two dimensions. Firstly, it enhances the competitiveness of our organic operations since few players in our segment hold this certification and customers increasingly seek out certified vendors. Secondly, many smaller software providers struggle to obtain certification, which strengthens our negotiation position in acquisition discussions.

Our Business Areas will continue to pursue profitability improvement goals, continued organic growth, and positive cost developments. Backed by our cash reserve, last-year's bond refinancing, and expected cash from operations going forward, Omda is poised to act on attractive M&A opportunities.

"Q1 takeaway: M&A is a top priority, and we will continue to accelerate margin improvement in our Business Areas."

-Sverre Flatby, CEO

Financials | Q1 2024					05
Income Statement - Omda AS, consolidated unaudited accounts
KNOK	Q1-24	Q1-23	2024 YTD	2023 YTD	2023 FY*
License sales	4 333	2 221	4 333	2 221	10 351
Recurring Software Revenue	82 940	78 906	82 940	78 906	320 940
Professional Services	16 548	18 440	16 548	18 440	72 660
Other operating income	-	69	-	69	2 969
Hardware	1 419	2 163	1 419	2 163	6 507
Total Sales	105 240	101 798	105 240	101 798	413 426
Government grants R&D (Skattefunn)	327	370	327	370	1 646
Total Income	105 566	102 168	105 566	102 168	415 072
Cost of Goods and Services	7 533	8 543	7 533	8 543	32 010
Salary and personnel	67 377	72 222	67 377	72 222	255 522
Other cost	15 649	15 954	15 649	15 954	64 278
Sum Cost	90 560	96 719	90 560	96 719	351 810
EBITDA	15 006	5 449	15 006	5 449	63 262
EBITDA-%	14%	5%	14%	5%	15%
Depreciation	1 190	1 074	1 190	1 074	4 586
EBITA	13 816	4 376	13 816	4 376	58 676
EBITA-%	13%	4%	13%	4%	14%
Amortisation of intangible assets	12 824	21 440	12 824	21 440	66 766
Changed estimate **	-	-	-	-	-136 777
EBIT	991	-17 065	991	-17 065	128 686
EBIT-%	1%	-17%	1%	-17%	31%
Interest expenses	-14 822	-11 059	-14 822	-11 059	-49 990
Other net financials	312	29 692	312	29 692	24 672
Profit before tax	-13 519	1 569	-13 519	1 569	103 369
Taxes	-282	-1 213	-282	-1 213	-8 353
Changed estimate useful life of intangible assets	-	-	-	-	7 372
Net profit	-13 237	2 783	-13 237	2 783	104 350
Key ratios
Capitalized R&D expenditure	8 195	8 054	8 195	8 054	40 736
CAPEX-%	8%	8%	8%	8%	10%

* As presented in Annual Report of 2023 / ** Changes in estimate of useful life of intangible assets

Financials | Q1 2024		06
Balance Sheet - Omda AS, consolidated unaudited accounts
NOK Thousand	31.03.24	31.12.23*
Customer Contract and IP	234 863	240 869
Intangible assets developed	209 161	201 383
Goodwill	60 955	65 187
Deferred Tax Asset	33 194	33 100
Total intangible assets	538 173	540 540
Fixed durable assets	8 846	9 217
Total tangible assets	8 846	9 217
Inventories	226	47
Accounts receivables	49 972	43 561
Other receivables	48 756	54 620
Cash and liquid assets	128 155	121 223
Current assets	227 108	219 451
Total assets	774 127	769 208
Share capital	2 097	2 097
Share premium reserve	83 291	93 160
Total equity	85 387	95 257
Deferred Tax	28 636	28 809
Bond Loan	478 853	477 483
Total long term liabilities	507 489	506 292
Accounts payable	9 774	18 029
Dividends payable	10 000	10 000
Public duties payable	24 473	28 511
Other short term liabilities	137 005	111 119
Current liabilities	181 251	167 659
Total equity and liabilities	774 127	769 208

* As presented in Annual Report of 2023

Financials | Q1 2024			07
Cash Flow - Omda AS, consolidated unaudited accounts
KNOK	2024 Q1	2023 Q1	2023 FY*
Profit/(loss) before taxation	-13 519	1 569	103 369
Adjustment - gain from sale of scanner business	-	-	-2 645
Net financial items	14 510	-18 634	25 318
Depreciation, amortisation and impairment	14 015	22 514	-65 425
Cash earnings from operations	15 006	5 449	60 617
Changes in accounts receivables	-6 411	23 404	7 511
Changes in accounts payables	-8 255	-544	3 558
Changes in other current receivables/liabilities	26 377	31 755	-25 072
Changes in public duties payable	-3 554	-13 215	-6 054
Taxes	4 069	-3 807	-1 640
Cash flow from operating activities	27 233	43 042	38 919
Capital Expenditure IP	-8 165	-8 580	-40 736
Capital Expenditure other	-820	-696	-5 623
Acquisitions(-)/Divestments(+)	-	-	1 124
Buy-back of shares	-	-	-20 000
Cash flow from investing activities	-8 985	-9 276	-65 236
Proceeds from new bonds	-	-	294 250
Proceeds from new roll-over bonds	-	-	205 750
Principal amount repaid OMDA01 PRO	-	-	-500 000
Call premium OMDA01 PRO	-	-	-6 507
Fees advisors	-	-	-7 561
Change in debt	-	-	-
Net interest and financial fees	-13 758	-10 282	-41 019
Cash flow from financing activities	-13 758	-10 282	-55 087
Net change in cash and cash equivalents	4 490	23 485	-81 404
Cash and cash equivalents at start of the period	121 223	196 566	196 566
FX adjustments	2 442	6 003	6 061
Cash and cash equivalents at end of the period	128 155	226 054	121 223

* As presented in Annual Report of 2023

Financials | Q1 2024

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DISTRIBUTION OF SALES, PER COUNTRY

• Sweden 45%
• Norway 21%
• Rest of the world 16%
• Denmark 10%
• Finland 8%

DISTRIBUTION OF SALES, PER BUSINESS AREA

• Emergency 43%
• Connected Imaging 19%
• LIMS 15%
• Woman & Child 12%
• Health Analytics 6%
• Medication Management 5%

DISTRIBUTION OF SALES, PER INCOME TYPE

• Recurring Revenue 79%
• Professional Services 16%
• Hardware Sales 4%
• License Sales 1%
• Other Income 0%

EMPLOYEES PER Q1 2024 (TOTAL 291 FTE)

• Nordics 72%
• Asia 17%
• Europe 6%
• Oceania 5%
• Americas 0%

All numbers YTD 2024. Due to rounding, numbers may not sum to 100%.

Financial Review | Q1 2024

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Financial Review

These condensed interim financial statements are prepared in accordance with Norwegian Accounting Standard 11 Interim Financial Statements (NRS 11 Delårsregnskap). These condensed interim financial statements are unaudited and do not include all the information and disclosures required by the Norwegian Accounting Act and Generally Accepted Accounting Principles in Norway (NGAAP) for a complete set of financial statements, and should be read in conjunction with the Consolidated annual financial statements for the year ended 31 December 2023. A description

of the significant accounting policies applied in preparing these condensed interim financial statements is included in Omda Health Group's Consolidated annual financial statements of 2023, available at omda.com/omda-investors.

RESULTS FOR THE FIRST QUARTER 2024

Omda displayed 3% growth in reported income, measured in NOK, for the first quarter of 2024 compared to Q1-23. Reported EBITDA increased to NOK 15 million (5.4). The reported EBITDA-margin increased to 14% in Q1-24, from 5% in the same period of 2023.

M&A

We are accelerating activities related to M&A, and are further developing dialogues with potential new acquisition candidates and exploring alternatives for further divestment of non-strategic assets.

PROFIT AND LOSS ACCOUNT

Revenue

Total income in the first quarter of 2024 amounted to NOK 105.6 million (102.2). Recurring revenue comprises 79% of total sales and grew 5% compared to Q1-23. Recurring revenues continue to grow in accordance with expectations, while sale of new licenses, which by nature vary from quarter to quarter, was markedly above the same quarter last year. Due to natural fluctuations, Professional Services decreased 10% compared to Q1-23, ending at NOK 16.5 million (18.4).

Hardware sales came in below the same quarter last year, ending at NOK 1.4 million (2.2). Hardware sales relate primarily to Business Area "Emergency".

Operating costs

Operating costs accumulated to NOK 90.6 million in the first quarter (96.7). The decrease in operating costs relate to all cost groups, but in particular to salary and personnel expenses.

Financial Review | Q1 2024

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COGS decreased 12% from Q1-23, ending at NOK 7.5 million (8.5), mainly a reflection of less hardware sales and the disposal of the Finnish scanner business in Q3-23. Gross margin remains well above 90% and continues to improve gradually, reaching 93% this quarter (92%). We aim to further reducing COGS going forward.

Personnel costs amounted to NOK 67.4 million in the first quarter (72.2). The decrease compared with Q1-23 is primarily attributable to the cost saving programme initiated in Q4-22. At the end of the quarter, Omda employed 291 FTEs compared to 297 at the end of Q1-23. The perceived increase compared to Q4-23 is due to part time consultants now being employed by the company, causing no negative cost effects.

Other costs amounted to NOK 15.6 million (16.0), attributable to overall cost consciousness throughout the organisation.

Capex is below our guided level this quarter and amounted to NOK 8.2 million in the first quarter (8.1), with a corresponding Capex-% of 8% (8%) of total sales for the quarter. The cash-EBITDA in this quarter is thus in line with the level displayed in Q4-23.

EBITDA

Reported EBITDA was NOK 15 million in the first quarter of 2024 (5.4) with a corresponding EBITDA margin of 14% (5%).

EBIT

Amortisation of intangible assets amounted to NOK 12.8 million in the quarter (21.4). EBIT ended at NOK 1.0 million in Q1-24 compared with -17.1 in the same quarter last year.

Intangible assets are amortised over a period of 15 years, and Goodwill is amortised over a period of 10 years according to NRS.

Financials

Interest expenses amounted to NOK 14.8 million (11.1) in the first quarter, of which NOK 13.3 million represent net interest and NOK 1.5 million represents amortisation of capitalised borrowing costs. The main reason for the increase is due to increasing Nibor.

Other financial items comprise agio/disagio related to transactions settled in other currencies than the reporting currency, and the valuation of assets and liabilities to be settled in other currencies than the reporting currencies. The latter is a calculated financial item and has no cash effect until settled.