<a id="bm-comp-a24ff642-1488-4bc7-8844-704e3b2f2e67" name="bm-comp-a24ff642-1488-4bc7-8844-704e3b2f2e67" class="BMCustomAnchor"></a><table><tr><td bm-component-id="a24ff642-1488-4bc7-8844-704e3b2f2e67" style="vertical-align: top; width:100.000000%;"><ul><li>Uniquely positioned in an attractive market</li><li>Positioned for further growth and scaling</li><li>Key customer received new large order</li></ul></td></tr></table><a id="bm-comp-70ec67b6-a315-481a-b0cc-5aa5856cd544" name="bm-comp-70ec67b6-a315-481a-b0cc-5aa5856cd544" class="BMCustomAnchor"></a><table><tr><td bm-component-id="70ec67b6-a315-481a-b0cc-5aa5856cd544" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Outperforming the large US-based competitors</h3><p>We hosted Clavister's CEO John Vestberg at ABGSC's Investor Days this week. Mr. Vestberg highlighted how Clavister is uniquely positioned as a strong competitor in Europe to the large US-based cybersecurity enterprises with its proven and robust technology that has been developed and cultivated in-house for over two decades. An important testament to this is the relatively low vulnerabilities in Clavister's technology compared to its competitors, which makes a strong case for Clavister's solutions to government agencies and municipalities, defence contractors, and public infrastructure operators, where the security is critical and can save lives. This group of customers comprises Clavister's primary target customers, and a few examples include RWE, which is Germany's second largest energy company, and uses Clavister's solutions to secure its renewable energy production. Another example is BAE Systems, the producer of Combat Vehicle 90. Warfare is changing with digitalisation, and there is a growing need for securing both vehicles and soldiers on the battlefield, and for this, BAE Systems has partnered with Clavister.</p></td></tr></table><a id="bm-comp-da8ab4bf-92bd-4110-b457-b05ac4d84e58" name="bm-comp-da8ab4bf-92bd-4110-b457-b05ac4d84e58" class="BMCustomAnchor"></a><table><tr><td bm-component-id="da8ab4bf-92bd-4110-b457-b05ac4d84e58" style="vertical-align: top; width:100.000000%;"><table id="bm-img-6aab5e3e-4da4-4854-9230-5cac3921d1b1" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td><img bm-img-encrypt="6aab5e3e-4da4-4854-9230-5cac3921d1b1" bm-img-original-height="376" bm-img-original-width="781" bm-img-svg="image:image_upload/83834_b7d02279-3d86-41e7-abd4-c21f4b0101e7.svg" bm-img-width-hint="100%" id="bm-id-6aab5e3e-4da4-4854-9230-5cac3921d1b1" src="https://abgsc.bluematrix.com/images/image_upload/83834_b7d02279-3d86-41e7-abd4-c21f4b0101e7_733.png" svg="/nas/web/clients/abgsc/images/image_upload/83834_b7d02279-3d86-41e7-abd4-c21f4b0101e7.svg" width="727" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: Clavister</td></tr></table></td></tr></table><a id="bm-comp-f5a0acc5-0941-4e8c-bdcd-bf38f9c5ed15" name="bm-comp-f5a0acc5-0941-4e8c-bdcd-bf38f9c5ed15" class="BMCustomAnchor"></a><table><tr><td bm-component-id="f5a0acc5-0941-4e8c-bdcd-bf38f9c5ed15" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Well-positioned to continue scaling</h3><p>The company has transitioned its business model towards subscriptions in recent years and now has +20,000 active subscriptions with low churn (~3%), which paves the way for solid ARR growth (+10% y-o-y in Q3'24). With the transition to subscriptions, the average contract length has also decreased (avg. of 12 months), which also allows the company to update its offering to its existing customers more frequently, and also raise prices faster. Mr. Vestberg also highlighted that while the trend in ARR is positive, it has not seen the full impact of the new defence orders yet, which is set to accelerate the group's organic growth in 2025. In terms of costs, Mr. Vestberg highlighted the cost reduction initiatives it implemented in 2022 and that he now feels comfortable with the current cost base. The company sells standardised solutions, with ~80% gross margins and generally does not need to increase opex to deliver to new customers. A testament to this was the SEK 170m contract with BAE Systems, signed in Q4'23, which only required Clavister to hire one more person to be able to deliver, highlighting the scalability potential. The scalability can also be seen in the EBIT development, which we believe is set to turn positive for the first time in 2025e.</p></td></tr></table><a id="bm-comp-bb6371f3-abba-4668-a66d-25b7b05dfc3d" name="bm-comp-bb6371f3-abba-4668-a66d-25b7b05dfc3d" class="BMCustomAnchor"></a><table><tr><td bm-component-id="bb6371f3-abba-4668-a66d-25b7b05dfc3d" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">New order for BAE Systems extends visibility into 2027</h3><p>Today, it was also announced that Clavister's key customer BAE Systems received a new order from Denmark's defence ministry regarding 115 new CV90's. This deal has been rumoured before but was not confirmed until today. This means that, in addition to the recently announced order from BAE regarding 152 CV90's to Slovakia and 80 CV90's to the Czech Republic, we now also believe that Clavister should receive an order potentially worth ~SEK 100m related to the new Denmark contract that is scheduled for deliveries in 2027-2030. The effect of this is that Clavister should now have a Defence order book that not only grows significantly in 2025 and 2026, but will also grow further in 2027.</p></td></tr></table><a id="bm-comp-0e9aa205-8f7f-41ce-b2be-92d67fa6c131" name="bm-comp-0e9aa205-8f7f-41ce-b2be-92d67fa6c131" class="BMCustomAnchor"></a><a id="bm-comp-1b6b3a8a-e23c-4e7f-8f82-5ec44ac3719f" name="bm-comp-1b6b3a8a-e23c-4e7f-8f82-5ec44ac3719f" class="BMCustomAnchor"></a><table><tr><td bm-component-id="0e9aa205-8f7f-41ce-b2be-92d67fa6c131" style="vertical-align: top; width:50.000000%;"><table id="bm-img-518a3dbe-6287-489a-91c3-6e7f8892420c" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Sales & EBITDA margin</td></tr><tr><td><img bm-img-encrypt="518a3dbe-6287-489a-91c3-6e7f8892420c" bm-img-original-height="457" bm-img-original-width="745" bm-img-svg="image:image_upload/83834_8b91248a-dc6b-47dc-b030-f5946371900b.svg" bm-img-width-hint="100%" id="bm-id-518a3dbe-6287-489a-91c3-6e7f8892420c" src="https://abgsc.bluematrix.com/images/image_upload/83834_8b91248a-dc6b-47dc-b030-f5946371900b_733.png" svg="/nas/web/clients/abgsc/images/image_upload/83834_8b91248a-dc6b-47dc-b030-f5946371900b.svg" width="363" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, company data</td></tr></table></td><td bm-component-id="1b6b3a8a-e23c-4e7f-8f82-5ec44ac3719f" style="vertical-align: top; width:50.000000%;"><table id="bm-img-c213b709-7d90-4b87-91fa-4d89193b2f81" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Opex break-down (% of sales)</td></tr><tr><td><img bm-img-encrypt="c213b709-7d90-4b87-91fa-4d89193b2f81" bm-img-original-height="402" bm-img-original-width="744" bm-img-svg="image:image_upload/83834_9c2f8ced-2851-466c-ad2c-44023a90e766.svg" bm-img-width-hint="100%" id="bm-id-c213b709-7d90-4b87-91fa-4d89193b2f81" src="https://abgsc.bluematrix.com/images/image_upload/83834_9c2f8ced-2851-466c-ad2c-44023a90e766_733.png" svg="/nas/web/clients/abgsc/images/image_upload/83834_9c2f8ced-2851-466c-ad2c-44023a90e766.svg" width="363" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, company data</td></tr></table></td></tr></table><a id="bm-comp-8db16a87-13e5-4a90-ac7c-f8adaa371285" name="bm-comp-8db16a87-13e5-4a90-ac7c-f8adaa371285" class="BMCustomAnchor"></a><table><tr><td bm-component-id="8db16a87-13e5-4a90-ac7c-f8adaa371285" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Clavister trade at ~3x EV/sales compared to peers at 12x</h3><p>The Clavister share trade at 3x EV/sales (NTM) based on FactSet consensus (ABGSCe 3.5x EV/sales on 2025e). This can be compared to its competitors/cybersecurity peers that trade at ~12x EV/sales (NTM). Peers include Fortinet, Palo Alto, and Check Point, which are companies Clavister compete against. The competitors have similar gross margins and growth trajectories (Clavister 16% sales CAGR '23-'26e vs. peers at 12%), but better scale and therefore EBIT margins (peers at 34% avg. EBIT margins).</p><table id="bm-img-d8cc5020-b94f-4cc4-a8a3-5b7b52fd9bbb" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">EV/sales vs. peers</td></tr><tr><td><img bm-img-encrypt="d8cc5020-b94f-4cc4-a8a3-5b7b52fd9bbb" bm-img-original-height="448" bm-img-original-width="797" bm-img-svg="image:image_upload/83834_c4c18b12-c8a2-4d7c-bf61-d24388ef6363.svg" bm-img-width-hint="82.12%" id="bm-id-d8cc5020-b94f-4cc4-a8a3-5b7b52fd9bbb" src="https://abgsc.bluematrix.com/images/image_upload/83834_c4c18b12-c8a2-4d7c-bf61-d24388ef6363_597.png" svg="/nas/web/clients/abgsc/images/image_upload/83834_c4c18b12-c8a2-4d7c-bf61-d24388ef6363.svg" width="597" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, FactSet consensus<br />Peers: Fortinet, Palo Alto, Check Point</td></tr></table></td></tr></table>