Company Update

Induct AS

January 24th 2017

2

Focus verticals/areas:

Healthcare

Municipalities and cities

Education

Enterprises

Humanitarian sector

One business model:

Induct Community

# of modules

# of subscription

Churn

Scaling:

High gross margin (> 95 %)

Low R&D expenses

Network effect (reduced

acquisition cost)

Platform to launch new

revenue streams

Robust, scalable and recurring revenues

Induct is an online social network

OSLO

(HQ)LONDONBARCELONA BOSTONSAO PAOLO BANGALORE

Management team

3

Founded Induct Software AS in 2007 Long experience from management positions in IT companies such as Fast Search &

Transfer and CMA Contiki Master in Business from Norwegian School of management (BI)

Alf Martin

Johansen

CEO

Joined Induct in 2015 Responsible for technology development, R&D and platform performance Long experience with software development, particularly within healthcare and PM Norwegian, Barcelona based for the last 20 years, Master in PM and PMP-Certified

Kenneth

Ramberg

CTO

Joined Induct in 2013 Responsible for preparing Induct operations and sales for scalable growth Positions in Statoil Fuel & Retail as EVP Sales & Operations and Chief Innovation Officer MBA from Massachusetts Institute of Technology

Karl Kristian

Mydske

COO

Co-founder of Induct in 2007 Head of global sales Sales and management experience from Top temp IT, TV2 and Visma software Bachelor degree in system development from NITH

Kim Hamli

CSO

Joined Induct in 2008 Considerable experience from the finance and IT sector Previously CFO in Hugin Group, a part of NYSE Euronext Previously CFO in Fast Search & Transfer, later acquired by Microsoft

Åge Muren

CFO

942,378

290,080

50,000

300,680

192,125

#shares

Board Of Directors

Academic Advisory

Board

Robin Waaler Long industrial experience from international business in BASF

Member of the board of Polytechnic Society of Norway

Alf Martin

Johansen

Founder and CEO of Induct Software

Dr. Henry

Chesbrough

Executive Director of Open Innovation Program at Haas School of Business, UC

Berkeley

Amanuensis of Business Administration at Harvard Business School

Dr. Sabine

Brunswicker

Director of Open Innovation at Fraunhofer Institute

Senior Research Fellow at ESADE

Senior Lecturer at European School of Business

Even

Nordstrøm

20 years experience from media business including CEO in A-pressen 2007-2010

Consultant in Nexia Management Consulting for 10 years

Associated partner in First House Media

Audun W

Iversen

Chairman in Opera Software ASA and NexGenTel Holding ASA.

Long background as Telecom/IT analyst and portfolio manager in DNB

Co-Founder and former CEO in EAM Solar

Øivind O

Magnussen

8 years in the Investment Banking Industry until 2000

Has the last 15 years been a serial entrepreneur with a long track record in

building international digital businesses outside Norway

Broad management experience from healthcare sector and IT

CEO in Stamina Group, a Scandinavian company within health and wellness

Prev. CFO/CEO in Pronova Biopharma when it went public and acquired by BASF

Business

Advisory BoardMorten

Jurs

13,155

71,619

0

70,450

942,378

55,000

15,000

62,834

#shares

The Induct innovation and knowledge eco-system

5

INDUCT NETWORK INDUCT COMMUNITY

NETWORK

IMPACT

ENGAGEMENT

EXECUTION

The Induct innovation process

6

IDEAS

CHALLENGES

KNOWLEDGE

INSIGHTS

EXPERIENCE

Crowd sourcing wisdom

Experience- and knowledge sharing

Involvement and Diffusion

Product Development

Service Design

Process Improvement

Measuring Outcomes

Sharing Innovations

FRONT END

Task-, process-, project-, portfolio- and measurement (ROI)

BACK END IMPACT

Key qualities of Induct modules

7

1. Collaboration- Multiple users can work together in real-time in the

same project space

- Users can be involved in the project no matter

where they are in the world

2. Processes- Tasks, documents and checklists follow the process

you create and need to support

3. Portfolio and reporting- Quick and detailed overview of all ongoing projects

4. Organization customization- One size do not fit all organizations, the platform

can be customized to fit the existing processes

within the organizations

Induct is uniquely positioned for two global megatrends

8

Healthcare:Increased demand for healthcare leads to accelerating cost

Digital business:Digital solutions drives networked innovation between organisations

Source: Boston Consulting Group

A key barrier for efficiency improvements:

9

Front line employees see improvement

opportunities every day, but

have no efficient place to

describe and share them

Hospital management with cost pressures and KPIs

have no efficient place to

drive, measure and report

internal improvements

Patients and relatives experience the hospital

have improvements ideas

but no place to share this

with the hospital

The improvement team at hospitals have no efficient

place to capture, process and

collaborate on improvements.

Excel is the norm.

No platform exists to access the documented improvements at other hospitals globally

Product offerings (modules) for our verticals/eco-systems

10

• Innovation mgmt.

• Project mgmt.

• Grant mgmt.

• Procedure mgmt.

• Lean mgmt.

• Deviation mgmt.

HealthcareMunicipalities and

citiesEducation Enterprises Humanitarian sector

• Innovation mgmt.

• Deviation mgmt.

• Project mgmt.

• Innovation mgmt. • Innovation mgmt.

• Deviation mgmt.

• Grant mgmt.

Healthcare

11

Comments

Network established in Norway

4 modules in use

300.000 hospitals worldwide

Induct has an ambition to reach

130 subscription by year end 2018

When Induct is used by a the first

group of hospitals in a market,

others are likely to follow, creating

a network of innovations and

improvements

CURRENTLY PRESENT NEW POTENTIAL MARKETS OTHER MARKETS

Huge growth potential worldwide

240.000

23.750

37.313

Municipalities / Cities

12

Comments

Taking success from healthcare to

municipalities and cities

Total market in Norway consists of

426 municipalities

During the first three weeks of 2017,

34 of 60 municipalities contacted

have signed with Induct (zero has

turned down the offer)

Induct has an ambition to reach

340 subscription by year end 2018

KS and Induct to sign strategic

collaboration agreement

Documented huge potential worldwide

Education

13

Comments

Collaboration between students

and enterprises

Network of 40 universities and high

schools in Catalonia

Pilot with BI

Low subscription fee – alternative

business models to be explored

Not a strategic focus at the

moment

Interesting for connecting eco-systems

Enterprises

14

Comments

Revenue model based on number

of employees

Experienced higher churn

Working with clusters to build

network effect

Managed incoming calls

Collaboration with other eco-

systems, like healthcare and

municipalities

Example eco-system within Enterprises

Humanitarian Sector

15

Comments

The number of NGOs world wide is

estimated to be 3.7 million

Strategic partnership with Sphaera

in the US

First customers signed

Find current networks

It is all about establishing innovation sharing eco-system

PROVEN IN HEALTHCARE – NEW VERTICALS INTRODUCED

16

2007-14: Technology and concept development

Documented user benefits and excellent customer feedback

Enterprise sector as “bread-and-butter” cash flow to 2015

Won the Norwegian national health tender by clear margin

Healthcare segment penetration is the medium-term priority

2015 sales breakthrough in healthcare (Norway, Spain, UK and US)

Subscription model secures recurring cash flow

Existing customers benefit by promote the Induct network

Additional modules to existing customers

Low operational cost and high margins

Combines two “mega trends”: Healthcare & Digitalization

Induct aims to become the industry standard in certain market segments

Large value creation potential by penetrating large healthcare markets

Value of network increases with no. of participants

Limited investment needed to finance growth

Proven technology &

customer benefits

Proven commerciality

& scalability

Large growth-& value creation potential

Healthcare revenues (ARR)

Large value creation potential

Cost saving at a single hospital

$ 8.4 mill.

Strong growth in recurring subscription revenues

Annualised recurring revenue per end of quarter (NOK million)

17

3,014,62

6,44 6,60 7,169

12

16

21

28

37

48

62

0

10

20

30

40

50

60

70

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Break down into Verticals

Induct Group - Balance Sheet – Prelim and Unaudited

31.12.2016 30.06.2016 31.12.2015 Comment

Non-current assets

Intangible assets 12 630 13 818 13 015

Capitalized R&D costs for the IT-platform.

Fixed assets 292 2 7 Investment in R&D site in Spain.

Financial non-current assets - - 486

Total non-current assets 12 922 13 820 13 508

Current assets

Receivables5 286 2 325 3 132

Accounts Receivables NOK 2,750 per 31.12.2016.

Bank accounts2 449 1 108 260

Total Current assets 7 735 3 433 3 392

Total assets 20 657 17 253 16 900

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31.12.2016 30.06.2016 31.12.2015 Comment

Shareholders Equity and Debt

Paid-in capital

Share capital749 688 429

Share premium reserve 69 212 57 791 32 937

Total paid-in capital 69 961 58 479 33 366

Retained earnings

Uncovered loss -60 660 -56 450 -48 610

Total retained earnings -60 660 -56 450 -48 610

Total shareholders equity 9 301 2 029 -15 244

Debt

Long-term debt

4 032 3 648 9 304 Primarily loan from Innovasjon Norge.

Short-term debt 7 324 11 576 22 840

Total debt 11 356 15 224 32 144

Total shareholders equity and debt 20 657 17 253 16 900

The Balance Sheet per 31.12.2016 is consolidated and include Induct AS and its subsidiaries in the US, UK, Brazil, Spain

and Spain R&D.

The Balance Sheet per 30.06.2016 includes Induct AS and its subsidiaries in the US, UK and Brazil.

The Balance Sheet per 31.12.2015 and 31.12.2015 includes Induct AS only.

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Induct AS, Rosenkrantz' gate 4, NO-0159 OSLO. Mail@inductsoftware.com. Tel: +47 415 80 000