Pexip Holding ASA

Annual Report

Highlights About Pexip Statement from the BoD Corporate Governance Financials Annual Report 2024

Table of

Contents

About Pexip

Highlights

Pexip

Key figures

Letter from the CEO

Pexip as an investment

Board of Directors 51

Statement from the Board

of Directors

Statement of Corporate

Governance (NUES)

Financial Statements

Executive Management 50

Our journey 11

Our mission 10

The Pexip Way 13

Offering 21

2024 Highlights 15

Market and customers 18

Strategy and targets 25

Business model 26

27Sustainability

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsAbout Pexip

Pexip solutions are software-only and can be self-

hosted or utilized as a service. Today, Pexip serves

large government and enterprise organizations,

supporting a wide range of applications, including

business communication, ultra-secure government

meetings, medical appointments, and legal

proceedings.

Pexip is a renowned player in the video meeting

ecosystem, recognized for its strong partnerships

with leading technology companies such as

Microsoft, Zoom, Google, Nvidia, and Cisco. Pexip’s

technology enhances and complements their widely

used meeting solutions. Typical customers use a

variety of communication technologies and rely on

Pexip to provide a seamless user experience across

rooms and devices for both internal and external

meetings. Pexip ensures that all meeting platforms

work together smoothly, eliminating barriers to

cross-platform communication. This allows users

to enjoy a superior and hassle-free experience,

regardless of the tools they use.

Pexip was founded in Norway in 2011 and currently operates in 26 countries worldwide.

As a specialist in video technology, Pexip is a leading provider of both video meeting

infrastructure and secure, customized video meetings. Pexip solutions allow organizations

to connect any meeting room with any meeting platform, to implement strong security

measures, ensure full privacy in meetings, and maintain complete control over all meeting

related data.

Highlights

About Pexip

Organizations that prioritize trust and security

choose Pexip as an ideal solution for confidential

meetings. Pexip offers a comprehensive virtual

meeting solution with advanced security features.

Additionally, Pexip offers extensive customization

capabilities, allowing organizations to create

tailored meeting experiences while maintaining full

control over their data. Today, leading enterprises,

government agencies, utilities, courts, and defense

organizations all depend on Pexip to facilitate their

secure video meetings.

Pexip is known for its strong people culture

built on values, attitudes, and mindsets that are

reflected in The Pexip Way. This is what guides the

Pexip team in its focus, behaviors, and how they

deliver on company ambitions.

Pexip employed 282 people at the end of 2024 and

has offices in the USA, Norway, Sweden, the UK,

Australia, France, Spain, and Italy.

Highlights About Pexip Statement from the BoD Corporate Governance Financials

4Annual Report 2024About Pexip Statement from the BoD Corporate Governance FinancialsHighlights

Global presence

282

employees across 26 countries

3,000+

customers enterprise & public sector

300+

partners

Washington DC

HQ Oslo

Stockholm

London

Madrid

Milan

Sydney

Tokyo

Singapore

Utrecht

Ghent

Paris

Technology partners

Annual Report 2024

About Pexip Statement from the BoD Corporate Governance FinancialsHighlights

Key figures

1,119 MNOK

Revenue 2024

282

Employees end of 2024

196 MNOK

Free cash flow 2024

91%

Gross Margin 2024

18%

EBITDA margin excl. other

gains and losses 2024

207 MNOK

EBITDA adjusted 2024

113.1 MUSD

ARR end of 2024

Definition of free cash flow can be found in the APM section

679

806

867

2020 2021 2022 2023 2024

Revenue (MNOK)

994

1,119

100

103

113.1

2020 2021 2022 2023 2024

106

Contracted Annual Recurring Revenue (ARR, MUSD)

2022

2020 2023 2024

2021

113

207

-124

EBITDA adjusted (MNOK)

-184

2023 2024

20222020 2021

361

329

304

282

535

Employees

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsHighlights

Pexip in 2024: A year of progress,

partnership, and impact

A strong position in an attractive market with relevant products, driven by an efficient and

committed organization that’s ready to capture growth in 2025.

While 2023 was about laying the groundwork for

growth with a return to profitability, 2024 centered

on streamlining the organization around a single

mission: to make seamless communication available

to all organizations, regardless of technology

platforms or security requirements. This approach

has led to outstanding performance across sales

and product innovation. Our collaboration with

partners including Microsoft, Zoom, Nvidia,

Google, and HP Poly has created significant market

momentum, and the Pexip team has truly embraced

our ‘world championship’ mindset. We earned the

trust of a range of large global enterprises and

government organizations, including healthcare and

defense institutions, that count on Pexip to solve

their complex communication challenges. These

significant wins are evidence that we are operating

in attractive markets, with relevant products –

putting us in an excellent position to kick off a new

year of opportunities.

Video interoperability is increasingly

important

Interoperability is a key requirement, as it is clear

that there will be more than one video meeting

platform in the market. End users expect seamless

LETTER FROM THE CEO

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsHighlights

interoperability, and in delivering this we hold a

leading position due to our solid partnerships with

major industry players. Our belief is that every video

meeting room should be able to connect seamlessly

to any type of video meeting, ensuring high quality

while leveraging the key native features of the room

system. We aim to provide an easy and intuitive user

experience, which is at the heart of our mission and

the reason we build the solutions we do.

For the past 12 years, Pexip has been a leading

provider of interoperability solutions for large

organizations around the world. Our extensive

experience and expertise have led major players

in the digital workspace, such as Microsoft and

Zoom, to choose us as partners in developing future

solutions. In 2024, we launched new solutions

that enhance the capabilities of Teams Rooms and

Zoom Rooms, allowing users to easily join and take

advantage of the meeting experience of any other

platform, directly from their meeting rooms. By

introducing these next-generation solutions, we are

reinforcing our position as the global leader in this

space.

Some meetings are more private

than others

Not all video meetings are the same, and there is

an increasing demand for private solutions, either

as alternatives or supplements to public hosted

platforms like Teams. Customers want control

over their data, and with rising cyber threat levels,

organizations are turning to Pexip for self-hosted

and private cloud solutions that provide ultimate

ownership. We empower organizations with secure-

by-design solutions for their private, confidential,

or classified meetings, ensuring that the meeting

platform remains under their control at all times.

It’s their meeting, their content, their data, and their

rules.

We also see AI functionality has become integral to

video conferencing, but with the rise of AI-powered

productivity tools come new challenges related to

compliance and privacy. In response to security-

conscious organizations seeking a more private way

to use AI, we launched Pexip Private AI in 2024. We

did this in partnership with Nvidia, offering a fully

self-hosted platform that delivers AI capabilities,

such as live captions and real-time translations,

while giving organizations complete control over

their AI data. The first use case for this solution is

around captioning – speech-to-text – and by the

end of the year we closed our first major sale of

Pexip Private AI to a large healthcare provider.

Growing demand for custom video

workflows

In client and citizen engagement, video will replace

voice and physical in-branch meetings, creating

a need for customized and private solutions. To

provide our customers with a solution that lets

them easily build secure video apps across their

workflows, Pexip launched a completely new

platform: VPaaS (Video Platform as a Service). This

solution meets the growing need for sovereign and

geo-fenced hosting to ensure data control within a

specific territory. We are seeing increasing demand

for this level of flexibility and control, particularly in

the global healthcare sector.

Return to growth

In 2024, we delivered both our financial and

operational targets. We started the year with the

ambition to deliver 5-10% ARR growth and 13-18%

Adjusted EBITDA margin, and I am pleased to see

that we closed 2024 in the high end of both ranges

delivering 10% ARR growth and 18% Adjusted

EBITDA margin. This puts us in a great position to

exceed our previous mid-term targets of delivering

more than 10% ARR growth and more than 20%

EBITDA margin. This is why we are now raising the

bar for ourselves, with a new long-term financial

ambition of achieving Rule of 40.

Collaboration is fundamental to

everything we do

Pexip plays a central role in the collaboration

ecosystem as a specialist provider of solutions that

complement and enhance the value propositions

of major platforms like Microsoft, Zoom, Google,

HP IP Poly, Cisco, and Nvidia, without directly

competing against them. Through our open

and collaborative partnership approach, we are

uniquely positioned as the leading provider of

video interoperability across all endpoints and

technologies. This has allowed us to establish

a solid foundation for growth in an expanding

market, offering customers certified solutions with

exceptional reliability and support.

The future is still customer-first

Exceptional experiences turn customers into

lifelong fans. At Pexip, we believe that being

Highlights About Pexip Statement from the BoD Corporate Governance Financials Annual Report 2024Highlights

customer-focused is not just a competitive

advantage – it’s who we are. We seize every

opportunity to deliver a personal touch and

premium care when it matters most, and our

dedication to customers has never been stronger.

As technology rapidly advances, our large

customers often face complex challenges. That’s

why our customers find it crucial working with

a vendor who understands what they face and

is willing to meet them on their terms. Providing

excellent service to our customers is a key part of

how we measure our success, and it’s the reason

Pexip has earned such loyal fans.

Finding the right success formula matters

At Pexip, we are committed to creating a

welcoming workplace for individuals who thrive

on challenges and are eager to tackle significant

problems in large organizations around the world.

Our goal is to establish and maintain a strong

leadership position in our markets, collaborating

with renowned technology companies and solving

communication challenges for some of the most

important organizations in the world.

As we navigate a rapidly changing landscape, we

recognize the importance of agility and innovation.

We are dedicated to improving our technology

while prioritizing the highest standards of security

and reliability. Our team is composed of passionate

individuals who are driven to think like ’world

champions,’ and we are committed to nurturing

their growth and helping them achieve their

full potential. Our core values are central to who

we are; they guide our actions and decisions

every day.

For the past two years, we have embraced a

success formula that reflects our commitment to

collaboration and support, and we will continue

this approach going forward. Together, we are

building Pexip into a successful, inspiring, and

caring place to work.

All about performance

2024 has been a rewarding year for Pexip, and we

want to take a moment to reflect on our journey

together. We’ve made meaningful strides and

achieved our goals, launched new products, and

developed deeper connections with our strategic

partners and customers. None of this would have

been possible without the dedication and belief of

our incredible team.

On behalf of everyone at Pexip, I want to express

our gratitude to our partners, customers,

shareholders, and all our teammates. Your

support is invaluable to us, and we recognize that

our shared success relies on our ability to work

together to create value. We are truly thankful for

your trust and collaboration, and we look forward

to continuing this journey alongside you as we

shoot for growth in 2025. This is our moment!

And we plan on taking it.

Trond K. Johannessen, CEO

Highlights About Pexip Statement from the BoD Corporate Governance Financials

About Pexip Statement from the BoD Corporate Governance FinancialsHighlights

Pexip as an investment

Proven and scalable business model with unique technology

Pexip is a certified video communication platform that offers a combination of unique

technology and industry partnerships to serve a broad range of companies and governments

around the world. The platform’s distinctive technology sets it apart from its competitors,

as it offers a level of quality and security that is unmatched in the industry. This makes

Pexip an attractive option for companies and governments looking for a robust and reliable

video communication platform.

Strong organization with value-driven culture

Pexip is led by an experienced management and technical team with a history of industry-

defining innovation and key competence to propel our continued growth. Pexip also

has a strong company culture that values performance and sets the customer first. The

company has an open and inclusive work environment, where all employees are given equal

opportunities to succeed.

Solid positioning for further growth

Pexip exited 2024 with a subscription base of over USD 113 million in annual recurring

revenue, and 18% Adjusted EBITDA margin. It is targeting above 10% growth and above 20%

Adjusted EBITDA margins in the near-term, and has a long-term ambition to reach Rule of

40 performance. Pexip is committed to deliver strong financial results to its shareholders.

In addition to its EBITDA target, Pexip aims to achieve a strong cash conversion rate and

generate significant cash flow from its operations. This strong financial performance,

combined with the company’s position in high-growth markets and focus on the lucrative

enterprise segment, makes Pexip an attractive investment opportunity for those looking to

invest in the video communication industry.

Strong position in growing niche markets

Pexip uses its unique technology in two niche markets, video interoperability and secure

and custom video meetings. Pexip has a strong position in both of these markets in terms

of product differentiation, a distinguished large enterprise and government customer list

and strong industry partnerships with others in the industry, such as Microsoft, Google

and HP/Poly. Pexip has a clear focus on large organizations and has focused its product

development and its go-to-market to meet this segment’s needs. Pexip’s strategy is to

continue expanding its presence in these markets, leveraging its unique position to drive

growth and increase its market share.

Annual Report 2024

Annual Report 2024Highlights About Pexip Statement from the BoD Corporate Governance Financials

Highlights

Providing seamless

communication to

all organizations

regardless of technology

platforms and security

requirements

About PexipAbout Pexip

Our mission

Annual Report 2024Statement from the BoD Corporate Governance Financials

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsAbout Pexip

In a world where video meetings are a

fundamental part of work, secure and seamless

communication is critical. We have spent a

decade creating the world’s most flexible and

universal video technology. Making any room

connect to any meeting seamless is our priority.

Making it private is our default. And making

it secure is by design. In doing so, we give

customers the ultimate level of control over their

data. This is our journey.

Step 1: Make it interoperable

Since day one, we have made video work on

just about everything, ensuring that people and

technology can connect anytime, anywhere,

from the device of their choice.

Step 2: Safeguard everything

We have long understood that what happens

on video is important, and often critical. This

information must be safeguarded, which is why,

for us, security is not just a feature. It is what we

do. Our technology has been tried and tested for

more than a decade in the strictest and toughest

Our journey

Highlights Statement from the BoD Corporate Governance FinancialsAbout Pexip

security environments, meeting the world’s toughest

requirements for privacy and data control.

Step 3: Never stop innovating

Video technology has the power to disrupt industries,

reinvent brands, and reimagine how companies

engage. We are committed to giving companies

and people a better way to interact. A virtual court

proceeding. A tactical battlefield operation. A remote

doctor-patient consultation. An online mortgage

consultation. An extended reality utility maintenance

inspection.

Video technology puts the human

touch back into our increasingly

digital lives

We have always been at the forefront of video

evolution. We keep our eyes on ‘what’s next’ and we

are obsessed with staying a few steps ahead because

that’s just who we are. Now we are unleashing

the potential of a secure video experience across

industries, and environments, and customized to

individual workflows. All to ensure that the human

touch is not lost in a sea of digitalization.

Pexipers climbing a mountain in Lofoten, May 2024

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance Financials

About PexipHighlights Statement from the BoD Corporate Governance FinancialsAbout Pexip

2011

Videxio AS (pre-merger entity)

founded by former TANDBERG

engineers.

2017

Video interoperability solution

for Microsoft Teams and Skype

for Business Server launched,

as well as interoperability for

Google Hangouts Meet.

2020

Pexip listed on the Oslo Stock

Exchange in the world’s first

virtual IPO.

2020

Pexip acquires Skedify

for business-to-consumer

scheduling applications.

2023

Pexip enters strategic

partnership with HP|Poly, and

launches FedRAMP authorized

service.

2012

Pexip AS (pre-merger entity)

founded by former TANDBERG

engineers.

Launch of the Videxio video

communication service.

Business established in the

United States through Pexip Inc.

(2012) and Videxio Inc (2013).

2018

Merger between Pexip AS and

Videxio AS approved.

2024

Pexip enters strategic partnership

with Nvidia to launch Private

AI. Pexip also launches Video

Platform as a Service.

2013

Launch of the Pexip Infinity

software platform.

2019

New company HQ in Oslo

opened.

2022

Pexip appoints Trond

Johannessen as CEO.

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsAbout Pexip

The Pexip Way

Our company values form the foundation of everything we do. They guide our daily

interactions with each other, our customers, and our partners. These values influence

our business decisions, product development, and brand identity. As Pexip continues to

grow and evolve, adhering to the Pexip Way is essential for achieving success. From the

beginning, Pexip has fostered an inclusive and transparent work culture that provides equal

opportunities for all. We take pride in our diverse workforce and believe that diversity is a

competitive advantage.

Professional & Fun

We are highly committed to ensuring the success

of our partners and customers. They are the key to

our success.

We are professional without being boring. We have

and spread fun while behaving responsibly. We

believe in what we do and let that shine through

in our interactions with colleagues, partners, and

customers.

We really care for what we do and achieve – we

stay hungry!

No Bullshit

We say and do what we think is right, with no

hidden agenda, and own up to it. We speak our

minds in a considered and constructive manner.

We do what needs to be done to help our

colleagues, partners, and customers. We take on

tedious or difficult work if it is the right thing to do

for Pexip, our team, our customers, or our partners.

We balance progress and perfection, delivering

high-quality and well-tested products.

We tell the truth and deliver on our promises. We

are authentic when dealing with each other and

our customers. We work and communicate in a

transparent and non-corporate way.

Highlights About Pexip Statement from the BoD Corporate Governance Financials Annual Report 2024Highlights Statement from the BoD Corporate Governance FinancialsAbout Pexip

Freedom & Responsibility

We hire great people and empower them with the

trust and autonomy to do what they do best. We

are free to use our initiative and make decisions

to work where, how, and when we want because

we take responsibility for doing what is right.

We understand our common goals and need for

innovation.

We are all leaders and take ownership of staying

excited, remaining distinctive in our area/function,

and doing what is holistically right. We are brave

and take the initiative to find a solution rather than

complaining.

We act like owners, making decisions that are best

for Pexip. We spend our money wisely.

One Team

We work together across functions, roles,

geographies, and product lines. We are all on the

same team, working together and contributing

our talents towards the same goal. We are non-

hierarchical.

We understand that we are all human, and we all

make mistakes. We take care of each other and treat

each other as we would like to be treated. We offer

each other help and support where it’s needed.

We are a diverse team that are all highly skilled and

knowledgeable in our areas. We appreciate and

respect that we all have different backgrounds and

points of view.

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2024 Highlights

Highlights Statement from the BoD Corporate Governance FinancialsAbout Pexip

Pexip introduces Connect

for Teams Rooms

Pexip connects Teams Rooms to other

meetings like Zoom and Webex, with a

seamless user experience.

Pexip introduces Connect

for Zoom Rooms

Pexip connects Zoom Rooms to other

Teams Rooms with a seamless user

experience. Pexip also joins the Zoom ISV

partners program.

Pexip strengthens and

extends its security

management

As of November 2024, Pexip has transitioned

to the 2022 version of the ISO 27001

standard.

Microsoft awarded Pexip as

Partner of the Year Finalist

Microsoft Partner of the Year Awards ia

a prestigious honor that celebrates the

exceptional work and contributions of

Microsoft partners. Pexip also won the

Partner of the Year in Norway.

Annual Report 2024

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2024 Highlights

Highlights Statement from the BoD Corporate Governance FinancialsAbout Pexip

Pexip launches a Private AI

platform powered by NVIDIA

Pexip provides secure AI-powered live

captioning with more features to come for

security-conscious customers.

Avaya selects Pexip to deliver

secure video meetings

Pexip’s secure meetings is now offered in

Avaya’s communication and collaboration

suite to support the strict compliance needs

of customers in government and regulated

industries.

Pexip partners with

RingCentral to power Teams

interop

RingCentral delivers state-of-the-art video-

enabled meeting rooms worldwide and

partnered with Pexip to ensure Rooms were

compatible with other meeting services,

specifically Microsoft Teams.

Pexip teams up with Cisco

to increase security for U.S.

Federal government

To ensure that U.S. Federal government

customers can securely and seamlessly

connect to Teams from their Cisco meeting

devices with with a secure interop solution

for impact level (IL) 4 and above.

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Highlights Statement from the BoD Corporate Governance Financials

Pexip launches Video Platform as a Service (VpaaS)

VPaaS makes it easy to build and embed secure video apps. The solution is designed for highly regulated

industries that demand geo-fenced data control and highly advanced video meeting features.

Pexip partners wih Orange

Business and Kinly for

soverign Secure Meetings as

a Service

The partnership now enables customers

in the Nordics with Kinly SecureMeet, a

completely sovereign and secure meetings

solution managed by Kinly, powered by Pexip

and Orange buisness.

Pexip first to receive FIPS

140-3 certification

Pexip is among a handful of companies that

has received the next-gen cryptographic

security certification, FIPS 140-3,

established by and for the US Government.

About Pexip Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance Financials

Highlights Statement from the BoD Corporate Governance FinancialsAbout Pexip

Market and customers

The global video conferencing market is undergoing a significant transformation, driven by

technological advancements and the lasting impact of the pandemic. As hybrid work models

have become a mainstay, the demand for versatile and secure communication solutions

continues to rise. In this landscape, Pexip remained a key player in 2024, reinforcing its

position as a vital partner for organizations seeking secure and seamless user experiences to

meet their complex communication needs.

Market overview

The global video conferencing market is evolving

rapidly, marked by significant growth, technological

innovation, and changes in competitive positioning.

Alongside broader market trends, Pexip’s solutions

have become increasingly relevant in 2024.

Since the onset of the pandemic, the video

conferencing market has experienced significant

expansion. Forecasts suggest the market will grow

from approximately USD 10–12 billion in the early

2020s to well over USD 20 billion by 2030, with

compound annual growth rates (CAGR) ranging

from 9% to 11%.

Pexip Connected Spaces

Video meeting room interoperability enables any

meeting room to connect to any meeting platform

Pexip Secure & Custom Spaces

Video meetings that are self-hosted on-premise or

in a private cloud – and that can run on any device

When several video technologies need to work

seamlessly together

When complete privacy and control

over data is required.

Pexip addresses two major challenges in video

communication: universal interoperability and

security. It allows seamless connections across

platforms like Microsoft Teams, Zoom, and Google

Meet, while also offering advanced security

features for self-hosted meetings in private or

air-gapped environments. This makes Pexip ideal

for organizations that need both cross-platform

communication and high-level security, such as

enterprise businesses and government agencies.

Secure & Custom Spaces. Due to the sensitive

nature of communications, organizations are

raising their requirements for encryption,

advanced authentication, access control, and

data compliance measures to support Zero Trust

Annual Report 2024

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Flexible deployment options

SOFTWARE AS A SERVICE PLATFORM AS A SERVICE SELF-HOSTED

Public

cloud

Geo-fenced

private cloud

Public compute

services

Private

cloud

Sovereign

cloud

Government

cloud

On-

premises

Air-

gapped

principles. Additionally, there is a growing demand

for private, sovereign, or geo-fenced solutions as

control of data becomes a more important topic

for organizations and governments. A notable

trend in the market is the integration of artificial

intelligence (AI) into video conferencing platforms.

AI is employed to automate routine tasks such as

real-time transcription, language translation, and

meeting summarization, leading to improved overall

productivity. However, with these advancements

come new concerns regarding the privacy of AI data.

Beyond corporate communications, sectors such

as healthcare, intelligence, defense, and justice are

increasingly utilizing secure video meetings, each

with tailored requirements to meet specific needs

and drive further innovation.

Connected Spaces. As companies transition back

to the office, the shift towards hybrid work is driven

by B2B and B2C client and citizen engagement.

This shift increases the demand for cross-platform

interoperability, as users increasingly meet across

multiple platforms, such as when connecting to a

Teams Meeting from a Zoom Room. Another trend

is the need to embed video apps in workflows. This

is particularly relevant for healthcare, justice, and

citizen engagement.

Customers

Large enterprise organizations

These organizations often use multiple meeting

platforms and room devices within their locations,

facilitating internal meetings across different

systems while also connecting with clients and

partners externally. Pexip effectively resolves

interoperability issues and provides an exceptional

user experience. It is favored by customers and

highly recommended by leading meeting platforms

and workspaces such as Teams, Meet, and Zoom,

which can be enhanced through Pexip’s solutions.

Large enterprises, such as those in banking,

pharmaceuticals, and manufacturing, typically

prefer hybrid or multi-cloud environments to

balance security with flexibility and scalability.

The growing demand for compliance and

control has created a need for Pexip’s Secure

Meeting solutions, especially in industries that

handle sensitive data and must adhere to strict

regulations like GDPR, HIPAA, or ISO.

Government and Defense

Pexip is a leading solution provider for

governments and defense organizations

worldwide. Many of its customers require private

clouds or government-certified infrastructure

to address national security and sovereignty

concerns. Some governments mandate that citizen

data remains within their jurisdiction. As a result,

solution providers like Pexip must adhere to the

highest standards of quality, control, and security.

They are also expected to offer global delivery

capabilities, outstanding service, and excellent

user experiences, documentation, and support.

In 2024, Pexip addressed sector-specific needs

by introducing innovative solutions, including

enhancements for the justice system. Furthermore,

Pexip’s offerings for custom applications and

secure video integration into workflows further

solidified its leadership in telehealth. The company

has also strengthened its position in the defense

sector by partnering with one of the world’s

largest defense alliances, onboarding new defense

contractors, and collaborating with key partners

on sector-specific standards such as the Federated

Mission Network.

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Technology Service Providers

Pexip collaborates with Service Providers to assist

customers with complex needs. These providers can

customize Pexip’s solutions, whether by integrating

with existing workflows or deploying solutions

across different environments. Overall, Pexip’s

global partnership with service providers is based

on its commitment to delivering flexible, secure,

and interoperable video conferencing solutions

that address diverse customer requirements across

various industries and regions.

Pexip’s strategic impact in 2024:

Interoperability Champion: Pexip has established

itself as a critical enabler for customers by offering

a platform that connects any video meeting room

to any meeting platform. This interoperability

is highly valuable as organizations increasingly

support multiple tools (such as Zoom, Teams,

Webex, Meet, and others) to facilitate work. By

focusing on seamless integration and a user-

friendly experience, Pexip has become the preferred

partner for organizations looking to modernize their

communication infrastructures.

Unique Partnerships: Pexip does not compete

with major players like Microsoft, Zoom, Cisco, and

Google; instead, it enhances their value proposition

by providing a superior and seamless interoperability

experience for their user base. By positioning

itself as an enabler of seamless cross-platform

interoperability, Pexip has become a trusted

partner to several of the world’s leading meeting

applications. Additionally, Pexip has introduced a

partnership with NVIDIA to develop the market’s

first private AI solution for meetings.

Secure & Custom Solutions: In 2024, Pexip’s

modern self-hosted Infinity platform, which

powers the solutions for secure and custom

meetings, experienced significant growth. The

solution is recognized for its advanced security

features and complete data control. To further

develop its leadership position, Pexip launched a

new offering: Video Platform as a Service. This

solution addresses the need for customers to build

secure video apps that can be embedded in their

workflows. A typical use case is within healthcare

and client/doctor meetings. The solution offers

geo-fencing, and advanced features tailored to

specific sector needs.

Pioneering Private AI: Pexip, leveraging NVIDIA’s

Riva SDKs, introduced live captions in secure

meetings in 2024, providing customers with

complete control and ownership of their AI

data. This is just the beginning of the Private AI

features that are set to be released. As a result,

Pexip has established a unique position in serving

organizations that require such control over their

private AI capabilities

Highlights About Pexip Statement from the BoD Corporate Governance Financials

Highlights About Pexip Statement from the BoD Corporate Governance Financials Annual Report 2024About Pexip

Every room

connected.

Every meeting

secured.

Pexip solves two major challenges in video communication. First, it provides universal

interoperability (Connect Portfolio) allowing you to seamlessly connect platforms like

Microsoft Teams, Zoom, Google Meet, and legacy systems. This ensures all your devices and

meeting platforms work together effortlessly. Second, Pexip delivers secure meetings

(Secure and Custom Meeting Portfolio), a modern solution with advanced access and

authorization controls, as well as the ability to self-host in private or air-gapped environments.

This combination makes Pexip ideal for organizations that need both cross-platform

connectivity and the highest level of data privacy and control

Offering

Highlights About Pexip Statement from the BoD Corporate Governance Financials

Pexip Connect Standard

Pexip Connect Standard offers best-in-class

interoperability between traditional meeting

room devices like Cisco, Poly and Avaya –

that are based on the SIP/H323 standard

– and connects them to Teams using Cloud

Video Interop (CVI) with an unmatched user

experience. The solution is both certified by

and supported by Microsoft. Pexip Connect

Standard includes interoperability combined

with modern software-based infrastructure.

Complete management and analytics, all in one

place.

Highlights About Pexip Statement from the BoD Corporate Governance Financials Annual Report 2024About Pexip

Pexip Connect Product Portfolio

Join any meeting from any meeting room. The Pexip Connect portfolio provides interoperability between

meetings and meeting devices.

Pexip Connect Essentials

This solution connects traditional meeting

room devices like Cisco, Poly and Avaya to

Teams Microsoft Teams or Google Meet

meetings, while excluding some of the

benefits from Pexip Connect Standard, such

as complete infrastructure.

Pexip Connect for Teams

Rooms

As more and more organizations move to

Teams as their preferred workspace, they are

replacing traditional meeting room devices

based on the SIP/H323 standard with Teams

Rooms. Teams is a proprietary standard

and can be challenging to connect to other

meeting platforms. Pexip Connect for Teams

Rooms is a unique solution that lets users

join any meeting, or place and receive calls

to and from anyone, complete with a native

experience from their Teams Rooms devices.

Pexip Connect for Zoom

Rooms.

As more and more organizations move to

Zooms as their preferred workspace, they are

replacing traditional meeting room devices

based on the SIP/H323 standard with Zoom

Rooms. Zoom is a proprietary standard

and can be challenging to connect to other

meeting platforms. Pexip Connect for Zoom

Rooms is a unique solution that lets users join

Teams Meeting and enjoy a native experience

from their Zoom Rooms devices.

Pexip Connect for Government

FedRAMP® and StateRAMP® Authorized Interop for Microsoft Teams, employing IL2 security.

Highlights About Pexip Statement from the BoD Corporate Governance Financials

Highlights About Pexip Statement from the BoD Corporate Governance Financials Annual Report 2024About Pexip

Pexip Secure Meetings Product Portfolio

A Pexip Secure Meeting is a self-hosted, high-quality virtual meeting solution that can run on any device,

meeting both industries and government demands for privacy, control, security, sovereignty, certification, and

business continuity. Pexip offers several industry-specific solutions.

Pexip Secure Meetings for

Defense

Collaboration you can rely on for Defense.

Unified communications for secret and above.

Pexip Secure Meetings for

Government

Sovereign and compliant video meeting

solution providing secure and private

communication for government officials,

agencies, and citizens.

Pexip Private AI platforme

Enable AI-powered live captions and

translations in secure video meetings.

Maintain regulatory compliance with

unparalleled privacy and control of AI data.

Pexip Secure Scheduler for

Web

For organizations that value high-security

and are unable to use Microsoft Exchange,

Pexip Secure Scheduler for Web is designed

to offer flexible, secure scheduling for virtual

meetings.

Pexip Secure Meetings for

Justice

Enable remote justice procedures with a

secure, private, and tailored solution to solve

the unique challenges of the court system.

Pexip Secure Meetings for

Health

Secure, reliable video visits for healthcare

providers and patients.

Highlights About Pexip Statement from the BoD Corporate Governance Financials

Highlights About Pexip Statement from the BoD Corporate Governance Financials Annual Report 2024About Pexip

Pexip Video Platforms

Pexip Video Platforms both offer a modern solution for industry-leading flexibility and customization, with full

ownership and control of users, deployment, and data.

Pexip Video Platform Self-

Hosted

The only customizable, high quality and secure

video platform designed for complete control

and flexibility.

Pexip Video Platform as a

Service

Easily build secure video apps. An easy-to-use

video engine designed for regulated industries.

A highly customizable, integrator-friendly

video platform as a service, with top-tier

privacy and compliance.

Annual Report 2024Highlights About Pexip Statement from the BoD Corporate Governance Financials

About Pexip

Strategy and targets

Pexip’s mission is to provide seamless video communication to all organizations regardless

of technology platforms and security requirements. We do that through developing software

technologies within video communications and in selling this technology to partners and

end-customers. Due to the capabilities of Pexip’s technology, we serve two main markets

with our solutions.

Within the video infrastructure and interop

market, Pexip has a clear leadership in

interoperability between different video platforms.

As one of two main players and the only

independent provider in this segment, we are well

positioned to create and develop partnerships with

other industry players, such as Microsoft, Google,

HP and others. Pexip is serving this market through

system integrator partners that often serve the

customers’ full collaboration needs. This is a mature

market with clearly defined customer needs, and

we are focusing on developing our leadership in

this space and maintaining a healthy and profitable

business. Pexip addresses this market through the

product offering for Connected Spaces.

Within the market for secure and customized

video solutions, Pexip is well positioned for growth

with our unique capabilities to deliver a self-hosted

video platform which is easy to integrate and is

interoperable with a range of video technologies.

This is a fast-growing market with mostly

public-sector customers, and we are investing

in strengthening our technology leadership and

focusing our go-to-market activities towards public

sector customers and system integrator partners

that operate in this market.

Pexip’s short term financial targets are to

consistently deliver above 10% growth in annual

recurring revenues and have an EBITDA margin

above 20% with a high cash conversion. In the

longer term Pexip has an ambition to deliver

Rule of 40 performance across annual recurring

revenue growth. The company aims to do this

by focusing on niches where Pexip has a unique

competitive advantage and a path to become the

clear market leader.

+10%

growth in annual recurring revenues

Rule of 40

performance

across ARR growth and EBITDA

+20%

EBITDA margin with a high cash conversion

Clear market

leader

Technology leader in core markets

LONGTERM AMBITION

NEAR TERM TARGETS

Annual Report 2024Highlights About Pexip Statement from the BoD Corporate Governance Financials

About Pexip

Business model

The software is developed by Pexip’s own employees, and the Intellectual Property is

protected by a set of patents and proprietary know-how. The software is delivered both

as a software product for customers to run and operate themselves, and as a Software-

as-a-Service (SaaS) offering operated by Pexip. Both offerings are delivered as a recurring

subscription-based model, and the vast majority of Pexip’s revenue is recurring revenue

from subscriptions.

Pexip serves a global market and has customers

across the world with its main focus in Europe,

North America and the Asia Pacific region. Pexip

is serving its customers through its own high-

touch sales and technology experts as well as a

global community of authorized channel partners

and service providers. These channel partners,

which include companies such as Orange

Business Services, the global technology and

business solution provider, ConvergeOne, the

US IT service provider and Kinly, the audio-video

specialist integrator, provide Pexip solutions to

their existing and new customers and possess the

technical knowledge and relationships to manage

those customers throughout the sales process,

from IT business strategy development to trials

to onboarding and support. This strategy also

provides the most scalable in-country sales and

support capability such as local language, time zone

coverage, and so on.

Strategic &

solution partners

Customers

PRODUCTS & COMPONENTS INTEGRATION & SOLUTIONS CUSTOMER REQUIREMENT SOLVED

Highlights About Pexip Statement from the BoD Corporate Governance Financials Annual Report 2024Highlights About Pexip Statement from the BoD Corporate Governance FinancialsAbout Pexip

Sustainability at Pexip

Pexip aims to create sustainable value by fully

integrating Environmental, Social, and Governance

(ESG) principles into its business strategy.

In today’s world, video communication has become

essential for organizations to operate effectively.

Pexip’s mission is to provide seamless communication

solutions that cater to all organizations, regardless of

their technology platforms or security requirements.

Our video technology connects everything from

business meetings to ultra-secure government

sessions, medical appointments, and court

proceedings.

As video communication becomes increasingly

prevalent, organizations must carefully consider

who they share their data with and who controls

the technology they use. With hybrid working now a

fundamental part of corporate culture, users depend

on a video communication platform that allows them

to do so easily and securely.

Strategic Focus Areas

The Sustainable Development Goals (SDGs) are a

collection of 17 interlinked objectives designed to

serve as a “shared blueprint for peace and prosperity

for people and the planet now and into the future”.

The SDGs were adopted by all UN member states in

2015, and represent an urgent call for action by all

countries in a global partnership to make the world a

better place by 2030. A key component of the SDGs

is the principle of collaboration for their achievement,

including between Government, Civil Society, and

Business.

We have identified the following SDGs as ones

Pexip can contribute to:

Pexip’s Sustainability Report

Pexip’s Environmental, Social, and Governance (ESG) efforts are detailed in the 2024

Sustainability Report. This report offers an overview of Pexip’s key ESG topics and

performance metrics for the year 2024. It has been prepared in accordance with the Global

Reporting Initiative (GRI) Standards.

These are Pexip baseline measures for the

following material topics:

• Data security and privacy

• Talent attraction and retention

• Greenhouse gas emissions and energy use

• Ethical business practices

• Diversity and equal opportunity

• Digital inclusion and positive industry impacts

• Health, safety and wellbeing

• Supply chain management

• Intellectual property rights

Pexip is actively addressing critical areas, such as

diversity, inclusion and equal opportunity. Pexip

learns from its partnership with Team Aker Dæhlie

how to deliver equal opportunity to perform, and

has several ongoing practices and forums to assess,

plan, and improve initiatives that ensure diversity and

equal opportunity and in recruitment, succession

planning, and leadership.

Pexip’s commitment to secure communication

through privacy and control of data is unique. The

collaboration with NVIDIA further positions Pexip

as a leader in providing private AI in self-hosted and

private-cloud environments. The growing political

tension worldwide has increased the need for

sovereign solutions where organizations own and

control their data.

Pexip has conducted a human rights due diligence

assessment for its suppliers in compliance with the

Norwegian Transparency Act. The account of this can

be found in the sustainability report.

For more information, the full sustainability report

can be downloaded at investor.pexip.com.

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance Financials

Statement from the Board

of Directors

In 2024 Pexip continued to deliver on its strategy of building market-leading positions in its

target markets, and through that delivering growth and profitability. Industry partnerships

continue to play a central role, and in 2024 Pexip has both strengthened the partnerships

with its existing partners such as Microsoft and HP and launched new cooperations with

Zoom and Cisco.

The Board sees a strong market opportunity for Pexip, with increased awareness of security

and sustainability among large organizations. Companies and public sector organizations

continue to increase their investments to improve and secure digital communication and

interaction both with their customers and internally, and Pexip is in a good position to

support our customers with this. We continue to see the emergence of several markets

adjacent to the global video and collaboration market where we believe Pexip really has an

edge and the technology to be a key player.

Market environment

Pexip’s ambition is to be the industry leader within

its core markets, which for Pexip is the market for

video infrastructure and interoperability, and the

market for secure and customized communication

solutions.

Within video infrastructure and interoperability,

Pexip believes that technology should work with

existing workflows and systems. With Pexip’s

solutions, users can securely join meetings with

any device and from any location, without the need

for expensive hardware upgrades, downloads or

software installations. With Pexip, organizations

can connect the tools and workflows already in use

and utilize native integrations with Google Meet

and Microsoft Teams, as well as SIP interoperability

to a large range of other platforms. The result is an

optimal user experience, ease of management for

administrators, enhanced return on investment on

existing infrastructure and a reduction in e-waste

as organizations extend the lifetime of their video

conferencing equipment and upgrade it in the most

efficient and sustainable way possible.

Within secure and customized solutions, the

potential use cases of video stretch far beyond

traditional videoconferencing and Pexip is at

the core of this, enabling organizations to make

the most of these possibilities. Video now plays

a critical role in critical communication inside

organizations, safely connecting patients with

healthcare providers, making public services more

accessible to citizens and facilitating business

continuity by enabling both internal meetings and

customer-facing interactions to securely happen

from anywhere. Organizations are impacted by

the heightened global security focus, driven by

both increased geopolitical complexity and cyber

vulnerability, and increasing awareness around

topics such as data security and data sovereignty.

It is becoming more important to have control

over your own data, in addition to the ability to be

compliant with new laws and regulations.

Pexip can deliver solutions that allow organizations

to maintain full data control with an integrated

chat, video and file-sharing solution to ensure

secure communications. In addition, with Pexip,

organizations can use application programming

interfaces (APIs) to build custom branded

experiences and integrate with their chosen

technology and workflows to provide video-enabled

consultations that are easy to join from any device

Statement from the BoD

Needs to be updated

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance Financials

or location, and that remain secure.

In total Pexip grew its subscription base in 2024 to

USD 113.1 million dollars at the end of 2024, up from

USD 102.8 million at the end of 2023. This is a 10%

year-over-year growth, which is in the upper end

of the 5-10% ARR growth ambition the Company

announced for 2024.

Organization and management

There have been no changes to senior management

during 2024. The company’s two main teams are

the commercial team responsible for sales and

customer success in Pexip’s target markets, and

the engineering team responsible for software

development, service operations, support and

product development. In addition the company has

a small headquarter team responsible for people and

development, finance and marketing.

Pexip has worked to continuously optimize its

operations during 2024 by consolidating roles

and removing support functions. This has led to

a modest reduction in staff from 304 at the start

of 2024 to 282 at the end of the year. The current

organization is designed to further execute on

Pexip’s revenue strategy going into 2025 and deliver

on the company’s strategic and financial targets.

Pexip has a global sales organization, with R&D

centered in Norway and in England and most HQ

functions in Norway. Pexip has legal entities in

Norway, UK, USA, Germany, France, Netherlands,

Belgium, Italy, Spain, Japan, Singapore, Australia

and Malaysia, as well as a registered branch in

Sweden.

Financial review

(Figures in brackets = same period prior year or

relevant balance sheet date).

Consolidated revenue amounted to NOK 1,118.6

million in 2024 (NOK 993.6 million in 2023),

representing a 13% increase year-on-year. The

increase is a result of the ARR increase over the last

year. EMEA was the largest sales area with NOK

567.0 million in revenue (NOK 501.5 million, +13%),

followed by Americas, accounting for NOK 468.7

million (NOK 416.5 million, +13%), and Asia-Pacific

(APAC), accounting for NOK 82.8 million (NOK 75.6

million, +10%).

Pexip-as-a-Service revenue accounted for NOK

545.2 million in 2024 (NOK 458.7 million, +19%).

Revenue from self-hosted software was NOK

573.3 million in 2024 (NOK 534.9 million, +7%).

Cost of sale consists mainly of network, data

center and hosting for the Pexip as-a-Service, as

well as some 3rd party commissions and software

licenses. Cost of sale amounted to NOK 105.1

million in 2024 (NOK 99.0 million), reflecting a

gross margin of 91% (90%).

Operating expenses consist mainly of salary and

personnel expenses and other operating expenses.

Salary and personnel expenses amounted to NOK

654.0 million in 2024 (NOK 621.4 million), which is

58% of revenue (63%).

Other operating expenses amounted to NOK 152.8

million (NOK 159.9 million), which reflects a level

of 14% of the revenue (16%). The reduction is due

to the cost-cutting initiatives and the effects

were realized across multiple cost categories, in

particular on external consultants.

Other gains and losses amounted to a loss of

NOK 15.9 million (NOK 10.9 million). The costs

in 2024 are mainly related to the termination

of employees in order to secure long-term cost

reductions.

Earnings before interest, tax, depreciation, and

amortization (EBITDA) excluding impairment

losses amounted to NOK 190.8 million for 2024

(NOK 102.4 million), reflecting a 17% EBITDA

margin (10%). EBITDA adjusted for impairment

and other gains and losses was NOK 206.7 million

(NOK 113.3 million), reflecting a 18% margin (11%).

This is in the upper end of the initial 2024 outlook

of 13-18% EBITDA margin excluding other gains

and losses.

Depreciation, amortization and impairment

costs were NOK 81.2 million for 2024 (NOK 199.1

million), of which NOK 3.1 million is related to

impairment of a right-of-use asset. The reduction

is a result of lower depreciation of intangible

assets, lower right of use depreciation related to

leasing as well as a one-off impairment cost in

2023.

Net financial income was NOK 54.6 million (NOK

33.2 million). Pexip had financial income of NOK

28.7 million related to interest on cash and money

Statement from the BoD

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance Financials

market funds (NOK 19.2 million), while the net

impact of foreign exchange differences gave a gain

of NOK 29.4 million (gain of NOK 16.7 million).

Profit before tax was NOK 164.2 million (negative

NOK 63.5 million). Profit after tax was NOK 117.9

million (loss of NOK 79.8 million).

Financial position

Pexip continues to have a very robust financial

position as the company has a solid cash buffer, no

material interest bearing debt and a positive cash

flow. Total assets amounted to NOK 2,225 million

(NOK 2,021 million at the end of 2023), and total

equity amounted to NOK 1,608 million (NOK 1,555

million at the end of 2023).

Current assets amounted to NOK 988 million (NOK

769 million at the end of 2023). Cash and cash

equivalents decreased to NOK 422 million (NOK

523 million at the end of 2023) and Financial assets

(money market funds) is NOK 206 million (NOK 0

in 2023). Combined cash and money market funds

increased to NOK 628 million (NOK 523 million).

Trade and other receivables increased to NOK

333 million (NOK 184 million at the end of 2023),

while Contract Assets decreased to NOK 7 million

(NOK 39 million at the end of 2023) due to timing of

invoicing at year-end versus at the start of the year.

Non-current assets amounted to NOK 1,237 million

(NOK 1,252 million at the end of 2023). Contract

costs increased to NOK 325 million (NOK 299

million), with the increase being from NOK 5 million

in net additions and NOK 21 million from foreign

exchange translation differences in the subsidiary

companies.

Total liabilities were at NOK 617 million (NOK

466 million at the end of 2023). NOK 2 million are

borrowings (NOK 2 million).

Current liabilities increased to NOK 532 million

(NOK 405 million at the end of 2023), with the

increase being mainly related to increased contract

liabilities from pre-paid software and SaaS

contracts as well as a smaller impact of increased

trade payables.

Non-current liabilities amounted to NOK 85 million

(NOK 61 million at the end of 2023) from increased

lease liabilities from a new long-term lease of

Pexip’s UK office.

Cash flow

Net cash flow from operating activities was NOK

244.5 million in 2024 (NOK 177.6 million in 2023),

mainly benefiting from higher profits before tax. In

addition, Pexip had a positive fair value adjustment

on its money market funds of NOK 6.1 million.

Cash flow from investing activities was negative

NOK 240.7 million (negative NOK 51.2 million).

This includes an investment of NOK 200 million in

low-risk money market funds that are held to cover

short-term cash needs.

Cash flow from financing activities was negative

NOK 127.9 (negative NOK 28.2 million). The main

cash outflow was related to the dividend payment of

NOK 111.7 million.

In total, Pexip had a free cash flow of NOK 196.5

million (NOK 104.7 million). The combined cash and

money market fund position was NOK 628.2 million

(net cash flow was NOK 422 and money market

fund position was NOK 206) at the end of 2024

(NOK 522.7 million), which is a net change of NOK

105.5 million.

As a result of the positive cash flow for the year

and the strong liquidity position of the Company,

the Board of Directors will propose a dividend of

NOK 2.5 per share for 2024 to the Annual General

Meeting in April 2025, which will be executed as a

repayment of capital upon shareholders approval.

At the issue of this report, the Company has

104,429,671 shares outstanding, of which 2,842,867

are held by the Company itself.

Outlook

Pexip believes that the market for enterprise-grade

video communication will continue to increase

due to the increased adoption and usage of video

communication. This is driven by a demand for more

flexible work, efficiency and increased awareness

of sustainability. Pexip has unique video technology

with capabilities within security, interoperability,

and flexible deployments. This makes the company

well-positioned as enterprises and public sector

organizations continue to adopt hybrid working

models. Furthermore, Pexip believes in the increased

use of video in organizations’ workflows with their

clients/customers, creating additional new and

significant market opportunities. In particular,

Statement from the BoD

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsStatement from the BoD

the use of video for mission-critical, high-security

meetings has increased. This is the foundation of

the focused strategy Pexip is executing, pursuing

market-leading positions in Secure and Custom

Video and Connected Spaces.

Pexip’s medium term financial targets are to

consistently deliver above 10% growth in annual

recurring revenues and have an EBITDA margin

above 20% with a high cash conversion. In the long-

term Pexip aims to deliver Rule of 40 performance

across EBITDA and ARR growth rate. The company

aims to do this by focusing on niches where Pexip

has a unique competitive advantage and a path to

become the clear market leader.

These forward-looking statements are not

guarantees or predictions of future performance,

and involve known and unknown risks, uncertainties

and other factors, many of which are beyond our

control, and which may cause actual results to differ

materially from those expressed in the statements

contained in this section. Readers are cautioned

not to put undue reliance on forward-looking

statements.

Subsequent Events

There were no subsequent events after December

31, 2024.

Parent Company and Allocation

of Net Profit

Pexip Holding ASA is a public limited liability

company. It has 0 employees, and its activities are

limited to being listed on Oslo Børs and being the

parent company of Pexip AS. Pexip Holding ASA

had a profit of NOK 10.5 million in 2024 (NOK 10.4

million in 2023), mainly related to fees for external

services and operating expenses as well as financial

income.

For 2024 the Pexip Group had a net profit of NOK

117.9 million. The Pexip Group had a free cash flow

of NOK 196.5 million, and a positive change in cash

and money market funds of NOK 105.5 million. As

a result, and due to the strong balance sheet, the

Board will recommend a dividend of NOK 2.5 per

share for 2024 to be paid in Q2 2025.

The gain for the year of the parent company, Pexip

Holding ASA, of NOK 10.5 million has been allocated

in its entirety to dividend.

Environmental, Social and

Governance

Pexip’s ambition within Environmental, Social

and Governance (ESG) is to run the business

in a responsible and sustainable manner over

time, and in a way that contributes to a positive,

trust-based relationship between Pexip, Pexip’s

stakeholders and society. Material topics included

in Pexip’s Sustainability Report were identified in

alignment with GRI’s materiality principle. Pexip

uses SASBs Software and IT Services Standard

and the disclosures contained within it to

represent material ESG topics for the company. All

disclosures from the Standard have been included

in this report. The Sustainability Report can be

found on Pexip’s webpage under https://investor.

pexip.com/ and includes the following material

topics:

• Data security and privacy

• Talent attraction and retention

• Greenhouse gas emissions and energy use

• Ethical business practices

• Diversity and equal opportunity

• Digital inclusion and positive industry impacts

• Health, safety, and wellbeing

• Supply chain management

• Intellectual property rights

Pexip has during 2024 performed a double

materiality analysis in line with the new EU

CSRD regulation. Pexip will publish this and

report its sustainability impact in line with the

new regulation as and if the regulation becomes

mandatory for companies of Pexip’s size, which

currently is estimated at 2025 or later.

Reducing both Pexip’s and the customers’ impact

on the environment when using Pexip’s products

and services is an important focus for Pexip

and the Board, and it will become even more

important in the future. The Board considers

Pexip’s operations to have an overall positive

effect on the global environment. Pexip delivers

videoconferencing services, which can be used to

reduce business travel and commuting, thereby

reducing carbon emissions, and improving

the environment. Pexip’s software also allows

enterprises to increase the lifetime of their

technical equipment through interoperability,

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance Financials

giving the opportunity to reduce e-waste. Pexip

only produces software and software-as-a-service

and does not use products or materials which

are harmful to the natural environment in the

production of its services. Pexip uses waste sorting

and recycling schemes for supplies and materials.

On the other hand, Pexip’s cloud services and

software has a significant power consumption

which has a negative impact. Pexip is using vendors

with clear net zero strategies for their datacenter

operations.

The direct impact of climate change is not expected

to have a material impact on Pexip’s financial

performance and accounts in the short term, as

Pexip has a limited carbon footprint and limited

physical infrastructure which can be impacted.

In the mid-term Pexip expects climate change

awareness to have a positive effect on revenue due

to the positive nature of videoconferencing when it

comes to reducing travel and commuting, improving

the environment as described above. Similarly,

it may negatively impact the cost of operations,

mainly related to data centers and compute due

to increasing cost of electricity. Pexip continues to

monitor potential risks and opportunities related to

climate change.

People and organization

Pexip aims to be a leading People organization in

the industry and focuses heavily on people and a

culture of accountability and performance. We rely

on a diverse workforce to succeed, and our goal is

to offer an equal opportunity, safe, and risk-free

working environment, fostering individual growth

and enjoyment at work.

Pexip is an equal opportunity employer that

evaluates applicants and treats employees equally

regardless of an individual’s age, race, color, gender,

religion, national origin, sexual orientation, disability,

or veteran status. We are committed to creating

a diverse and inclusive environment at work and

are proud to be an equal-opportunity employer. All

qualified applicants will receive the same level of

consideration for employment; everyone we hire will

receive the same ability for training, compensation,

and promotion. Promotion-processes includes

involvement from HR to ensure equal opportunities

for all. We have a leadership training program,

where one of the sessions is dedicated to the theme

Statement from the BoD

One Team, where diversity and inclusion is an

important topic.

Employees and gender balance

At year end, the number of employees in Pexip in

permanent positions amounted to 282 (2023: 304),

of which 227 were male and 55 were female. The

employees are located in 26 countries. Pexip has

offices in Norway, Sweden, Belgium, Spain, France,

Italy, Netherlands, Germany, UK, Australia, USA,

Singapore and Japan.

At the end of 2024, the percentage of female

employees was 20%, compared to 21% at the end

of 2023. Pexip has a long-term ambition to increase

the share of women, aligned to the gender balance

in the industry as a whole. In Norway, women

working in the private sector represent around

37%

of the workforce, but only around 29%

employees and 33% of leaders in IT companies are

women.

Statistics Norway, Last updated 2023

KANTAR / ODA-Nettverk 2019

The senior leadership team comprises seven

employees, of which two are female. The Board

currently has five members, of which two are

female. A detailed breakdown of the gender

distribution per leadership type and wage

differences is given below.

Employees

2024 2023

Male Female Male Female

# of total employees 227 55 240 64

# of full-time employees

at end of year

225 53 237 61

# of part-time employees

at end of year

2 2 3 3

# of temporary employees

at end of year

0 0 0 0

# of involuntary part-time

employees at end of year

0 0 0 0

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance Financials

Going forward, our goal is to be a diverse

company, offering equal opportunities, and a

good working environment for all employees. We

recognize there is still work to do, but we are

committed to creating more opportunities for a

more balanced representation. We work actively

in each recruitment process to ensure we create

equal opportunities for all and to increase female

representation in all divisions and levels of the

organization.

Our work for equality is underpinned by several

policies. Our code of conduct includes our

commitment to creating an equal opportunity

workplace, free from discrimination, harassment,

and victimization. Our human capital policy outlines

our principle of gender pay equality, and our belief in

equal pay for equal work. Ensuring work-life balance

is also strongly embedded in our culture, and

meetings and events shall be held virtually where

this is appropriate and possible.

Through 2024, Pexip has collaborated with Team

Aker Dæhlie to support BEYOND. Team Aker Dæhlie

is the first professional athletic team to include

athletes from both genders across long-distance

running, FIS/allround, talents and para-crossing.

The venture is called BEYOND and is also about

performing beyond going fast on the cross-

country track. Pexip is proud to have joined this

collaboration, and the joint ambition and action for

equal opportunities.

Flexible working and healthy working

conditions

Pexip works to offer a safe and risk-free working

environment that promotes a healthy workplace

Statement from the BoD

Parental leave 2024 2023

Male Female Male Female

Employees entitled

to parental leave

227 55 240 64

Employees that

took parental leave

of more than one

month

3 5 2 7

Weeks of parental

leave during the

year

16 117 37 122

Sick leave 2024 2023

Male Female Male Female

# of employees on

sick leave during

the year

55 26 68 39

# of days of sick

leave during the

year

305 137 470 315

and facilitates work-life balance. The company

offers flexible working hours and flexible workplace

schemes to facilitate work-life balance and better

conditions for, for example, combining work and

parenting. In 2024, the average sick-leave was 0.6%

(2023: 0.9%). During the year, 3 male and 5 female

employees were on parental leave for more than a

month, and male employees took 16 weeks in total,

while the female employees took 117 weeks.

Research and Development (R&D)

A core activity for Pexip is R&D related to distributed

software platforms for videoconferencing and

collaboration. During 2024 Pexip has delivered

several important innovations, as described

elsewhere in this report. The technology is

developed with the aim of making the company

the industry leader within Connected Spaces and

Secure and Custom video solutions

for large international corporations and public

sector organizations. Of the total R&D in 2024,

Pexip capitalized NOK 26 million (NOK 35 million)

and the remaining cost has been classified as

operating expenses.

Gender

distribution

Wage differences:

Female share of men’s

compensation in %

Female Male On-target earnings

Total 20% 80% 77%

Senior

leadership team

29% 71% 53%

Employees in

leadership roles

18% 82% 72%

Other employees 20% 80% 80%

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsStatement from the BoD

Risk and Risk Management

Risk management in Pexip is based on the principle

that risk evaluation is an integral part of all business

activities, and is a part of the annual strategy review.

Pexip has developed its approach to risk assessment

and risk mitigation within financial reporting, and

within information security, where Pexip holds

ISO 27001 and 27701 certifications as an external

recognition of its approach. Pexip’s key commercial,

technological, and operational risk factors are

summarized here.

Operational and Market activities

Pexip may be unable to retain or replace its

management and/or key IT, sales and marketing

professionals. Retaining Pexip’s strong talent and

leadership is vital due to their extensive experience

and skill sets within the videoconferencing and

collaboration industry, which is required to support

and develop Pexip’s projects. It is also vital for Pexip’s

operations to retain or replace its IT professionals

with expertise within information security and

privacy, as well as certain IT professionals within R&D

with skills required to sustain and develop Pexip’s

competitive differentiation. There is a shortage of,

and intense competition for, sales and marketing

professionals with ability and expertise to sell

products and services to large worldwide businesses

and organizations with lengthy procurement cycles

and severe evaluation and negotiation processes.

Pexip may not be able to respond to rapid

technological changes, extend its platform or

develop new services in a highly competitive

market. The communications and collaboration

technologies market is highly competitive and

characterized by rapid technological change and

frequent new product and service introductions.

Pexip’s future profitability depends heavily on

its ability to enhance and improve the platform,

introduce new features and products and interoperate

across an increasing range of devices, operating

systems and third-party applications. There can be

no assurance that any attempts on enhancements to

the platform or new product experiences, features or

capabilities will be compelling to users or gain market

acceptance in a timely and cost-effective manner.

Pexip is exposed to risk related to high upfront

sales and marketing costs, lengthy sales cycles

and unexpected deployment challenges due to

its sales and marketing to large businesses and

organizations. As Pexip’s main focus is on large

enterprise customers, a large proportion of the sales

and marketing costs are related to such customers.

These customers and potential customers have

lengthy procurement cycles and severe evaluation

and negotiation processes due to their leverage,

size, organizational structure, and approval

requirements, and often demand additional features,

support services and pricing concessions or require

additional security management or control features.

Pexip spends substantial time, effort and funds on

sales and marketing efforts to potential customers

without any assurance that this will produce any

sales.

Pexip is exposed to risk related to cyber-threats.

As a technology group that delivers an end-

to-end videoconferencing platform and digital

infrastructure, Pexip and its customers are subject

to cyber-attacks from cybercriminals. Rapid

changes in attack vectors makes it difficult to stop

attacks and adapt to new threats and the increased

social hacking creates a cyber-threat risk for Pexip.

Pexip is exposed to risk relating to system

failures, defects, or errors. Certain applications

offered to customers are hosted on Pexip’s own

servers, running in co-located data centers. Pexip

must maintain continuous data center operations

(including network, storage, and server operations)

to ensure adequate delivery of services. Pexip’s

data center operations may experience disruptions

or outages as a result of human error, equipment

error, cyberattacks, software failure or natural

disasters. Pexip’s platform and services are based

on inherently complex software technology, which

may have real or perceived defects, errors, failures,

vulnerabilities, or bugs in the platform and Pexip’s

products could result in negative publicity or

lead to data security, access, retention, or other

performance issues.

Operational Activities Risk Mitigation

To retain and attract talent, Pexip continuously

invests in strengthening the corporate culture, the

Pexip Way, as well as making sure Pexip is taking

advantage of all available talent through its diversity

initiatives. Pexip has developed a strong sales and

R&D capacity to stay ahead of competition. To

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsStatement from the BoD

mitigate risks within cyber security and system

errors, Pexip invests in strengthening its system

architecture, as well as investing in competence

development and awareness training. Since the

founding of the company Pexip has invested in

automated software testing to ensure a robust,

enterprise-grade product offering.

Customer Relationships and Third Parties

Pexip depends highly on existing customers

renewing their subscriptions. Pexip’s offerings

are in a highly competitive communications

and collaboration market, with fluctuating user

satisfaction, demand for products and/or services,

financial position of customers and acceptance

and use of communications and collaboration

technologies in general. Pexip’s business operations

depend highly on renewed subscription by its

existing customer base.

Pexip is exposed to risk related to the

interoperability of Pexip’s platform across devices,

operating systems, and third-party applications.

Compared to its competitors’ solutions, Pexip’s

platform is accessible irrespective of technology

and device, and has integrations with traditional

video equipment, via browser, collaboration tools,

enterprise & internet streaming, and telephony.

Pexip is highly dependent on the accessibility of

its platform across these and other third-party

operating systems and applications that it does

not control. Third-party services and products are

constantly evolving, and Pexip may not be able to

modify its platform to assure compatibility with

that of other third parties following development

changes.

Customer Relationships and Third Parties

Risk Mitigation

Pexip invests substantial resources into R&D

to further develop its offering, and has also

invested in strengthening the Customer Success

methodology. In addition, Pexip has a dedicated

alliance team working with strategic partners to

build joint customer value and explore new areas of

cooperation with its alliance partners.

Laws Regulations and Compliance

Pexip is exposed to risk relating to data protection

and data privacy regulations, licenses, etc. Pexip

receives, stores and processes personal information

and other user data through its business and

operations in multiple jurisdictions. This makes

Pexip exposed to data protection and data privacy

laws and regulations it must comply with, which all

impose stringent data protection requirements and

provides possibly high penalties for non-compliance,

in particular relating to storing, sharing, using,

processing, disclosing and protecting personal

information and other user data on its platforms.

Pexip is subject to laws and regulations in several

jurisdictions, including governmental export and

import controls. Pexip’s platform and products

are subject to governmental export and import

controls that could impair Pexip’s ability to compete

in international and/or national markets due to

specific licensing requirements. Any change in

export or import laws and regulations could result

in decreased use of the Pexip platform or decreased

ability to export or sell subscriptions to the platform

to existing and/or potential customers with

international operations.

Pexip is exposed to risks of claims and legal

proceedings, including intellectual property

right disputes. Pexip may be party to various legal

proceedings that arise in the ordinary course of

its business, including intellectual property rights

disputes. The value of intellectual property rights

is of high importance for Pexip, as it operates in a

highly competitive commercial environment where

the strength of the intellectual property rights may

be an important feature that distinguishes Pexip

from its competitors. It is therefore important for

Pexip to ensure the value and commercial use of

its intellectual property rights. There can be no

assurance that third parties have not or may not

infringed intellectual property rights owned by

Pexip, who may have to challenge such parties’

rights to continue to use or sell certain products

and/or may seek damages from such parties.

Moreover, there can be no assurance that Pexip

may not infringe or be alleged to have infringed

intellectual property rights owned by third parties

who may challenge Pexip’s right to continue to use

or sell certain products and/or may seek damages

from Pexip. Any infringement or other intellectual

property claims made by or against Pexip could be

time-consuming, result in costly litigation processes

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsStatement from the BoD

that may result in substantial monetary damages,

cause product delays, divert its management from

their regular responsibilities or require Pexip to

enter into royalty or licensing agreements.

Laws Regulations and Compliance Risk

Mitigation

Pexip actively monitors and adapts to the

development of laws and regulations in the markets

it operates in, especially within the data privacy area

which has seen significant development in recent

years. Industry standard insurance policies are also

in place.

Financial and Market Risk

Pexip’s profitability, operating results and working

capital may fluctuate significantly. Operating in a

global, fast-changing market, Pexip’s profitability,

results of operations and working capital may

fluctuate significantly on a quarterly and annual

basis. The subscription-based revenues may also

fluctuate significantly, both in the short-term and

long-term. Pexip has counterparty risk with regards

to its account receivables, its cash placement in

banks as well as funds held in money market funds.

Working capital may also fluctuate significantly

on a quarterly and on an annual basis, which could

have a material adverse effect on Pexip’s business

and financial performance. This may be caused by

factors beyond Pexip’s control, such as variations

in the timing of orders and deliveries, new product

introductions by Pexip and its competitors,

variations in spending budgets of customers, shifts

in market and industry emphasis and end user

demands, and general economic conditions and

economic conditions.

Pexip is exposed to foreign currency exchange

risk. Because a significant part of Pexip’s business

is conducted in currencies other than its functional

reporting currency (NOK, as defined below)

and Pexip has its majority of ARR in contracts

denominated in USD, Pexip will be exposed to

volatility associated with foreign currency exchange

rates. Exchange rate fluctuations may affect Pexip’s

financial results through translation of the profit

and loss accounts and balance sheets of foreign

subsidiaries into NOK. Currency risks may also arise

when Group companies enter into transactions

that are denominated in currencies other than their

functional currency. Pexip itself is also invoiced

in other currencies than its functional currency,

thus resulting in currency exposure from both a

customer and supplier position. Currency exposure

is the result of purchases of goods and services in

other currencies than Pexip’s functional currency

(transaction exposure) and of the conversion of

the balance sheets and income statements in

foreign currencies into NOK (translation exposure).

Such translation exposure does not give rise to an

immediate cash effect. Pexip does not use financial

instruments to hedge its exposure to foreign

exchange rate risks, and there is no guarantee

that Pexip’s financial results will not be adversely

affected by currency exchange rate fluctuations

or that any efforts by Pexip to engage in currency

hedging activities will be effective.

Pexip is exposed to risk relating to impairment

of intangible assets, including goodwill. The

company’s audited consolidated financial statement

for the year ended December 31, 2024 was prepared

in accordance with the International Financial

Reporting Standards (IFRS), as adopted by the

European Union. As of December 31, 2024, Pexip’s

non-current assets amounted to NOK 1,237 million,

most of which are intangible assets including NOK

599 million in goodwill. Goodwill acquired in a

business combination is not amortized pursuant to

IFRS, but is tested for impairment annually, or more

often, if an event or circumstance indicates that an

impairment loss may have been incurred. The key

assumptions affecting the present value of cash

flows are the development of the net sales (expected

growth rate), profitability, the discount rate and the

growth rate. Changes in the development of the

key assumptions could lead to impairment losses

on goodwill, which could weaken Pexip’s financial

conditions, results of operations, equity and/or its

ability to pay dividends or distributions. At the end

of 2024 there is solid headroom giving a moderate

risk of impairment in the case of an adverse

development in the key assumptions. This is further

described in the notes to the Annual Accounts for

2024.

Financial and Market Risk mitigation

Pexip maintains a robust balance sheet with a

significant cash position in order to fund its growth

investments and working capital needs. In addition,

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsStatement from the BoD

the company has very limited interest-bearing debt.

Pexip does not use hedging instruments, but holds

its cash holdings in a range of currencies according

to its main cash outflows and holds money market

funds with low risk counterparties. Pexip currently

has positive headroom in its impairment tests, but

this is sensitive to both changes in cost of capital as

well as future cash flow estimates.

Impact of Russia’s Invasion of Ukraine

The ongoing situation in Ukraine, and the impact

on business in the region is still ongoing. The war in

Ukraine has impacted Pexip in several ways. Pexip

has two remote employees based in the conflict

area and several employees from the involved

countries in other offices. Pexip’s main concern has

been to ensure their safety and offer support to

them in the best way. The financial effect from this

is limited until this date due to a modest market

presence in the region, with the main impact being

loss of potential opportunity. In response to the

attack on Ukraine, several extensive packages of

sanctions towards Russia have been launched. The

imposed sanctions are far-reaching. Norway has

adhered to all EU sanctions. To ensure compliance,

Pexip has ceased all commercial activities in

Russia, Donetsk, Luhansk, and Belarus. The

company regularly assesses, and maps exposures

related to these regions, including relationships

with banks, resellers, and customers with ties to

Russian interests or sanctioned individuals. All such

relationships are thoroughly reviewed to ensure

adherence to international sanctions.

Impact from the current market situation

The global economic and geopolitical situation

has faced challenges during 2024 and remains

uncertain for 2025. In particular there is increased

uncertainty with regards to sanctions and trade

barriers, which may impact Pexip which delivers

its software and software-as-a-service in several

markets across the world. Pexip has a local

presence in its key markets and is continuously

monitoring the development in order to adjust to

and seek to mitigate any regulatory changes.

Corporate Governance

Good corporate governance provides the foundation

for long-term value creation, to the benefit of

shareholders, employees and other stakeholders.

The Board has established a set of governance

principles to ensure a clear division of roles

between the Board, the executive management

and the shareholders. The principles are based

on the Norwegian Code of Practice for Corporate

Governance. Pexip is subject to annual corporate

governance reporting requirements under section

3-3b of the Norwegian Accounting Act and

the Norwegian Code of Practice for Corporate

Governance, cf. section 7 on the continuing

obligations of stock exchange listed companies.

The Accounting Act may be found (in Norwegian)

at www.lovdata.no. The Norwegian Code of

Practice for Corporate Governance, which was

last revised on October 14, 2021, may be found at

www.nues.no. Pexip is subject to the Norwegian

Transparency Act, and the assessment can be

found together with the other financial reports at

www.pexip.com/investor. The annual statement on

corporate governance for 2024 has been approved

by the Board and can be found in this annual

report.

A Directors and Officers Liability Insurance is in

place for members of the Board of Directors and

the CEO for their potential liability towards the

Company and third parties. The insurance covers

the Board’s and the CEO’s legal personal liability

for financial damage caused by the performance

of their duties. The insurance additionally covers

any employee acting in a managerial capacity and

includes subsidiaries owned with more than 50%.

The insurance policy is issued by a reputable,

specialized insurer with appropriate rating.

Share and Shareholder Matters

The Pexip share is listed on Oslo Børs under the

ticker PEXIP. The company was listed on Oslo Børs

on May 14, 2020 with a subscription price of NOK

63.00 per share.

Pexip has only one share class, and all shares have

equal rights in the company.

On December 31, 2024, the share capital of Pexip

Holding ASA was NOK 1,566,445.065 divided

into 104,429,671 ordinary shares with a par value

of NOK 0.015. The share had a closing price on

December 30, (last day the share was traded in

2024) of NOK 43.9, up from NOK 25.9 per share at

the end for 2023.

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsStatement from the BoD

The turnover of shares is a measure of traded

volumes. On average, 218,566 Pexip shares were

traded on Oslo Børs every trading day in 2024.

As of December 31, 2024, Pexip had 4,947

shareholders registered in the Euronext Securities.

The shareholders were from 47 different countries

across the world, with 28.4% of holdings were

held by shareholders outside Norway. The top 20

shareholders held 47.2 of the registered shares

excluding shares held by the company.

The shares are registered in the Norwegian Central

Securities Depository. The company’s registrar

is DNB Markets. The shares carry the securities

number ISIN NO 0010840507.

Pexip aims to have an open and transparent dialogue

with shareholders and investors. Pexip has a set

of guidelines for investor relations. The purpose of

the investor relations guidelines is to ensure that

relevant, accurate and timely information is made

available to the market as a basis for fair pricing and

regular trading of the company’s shares, and the

company is perceived as a visible, accessible, reliable

and professional company by the capital market,

while at the same time always observing the rules

and legislation for listed companies on Oslo Børs.

Pexip ensured that all relevant information required

for external evaluation of the company was published

in accordance with applicable rules and guidelines

set by Oslo Børs. The company also conducted

investor roadshows with investors across the globe in

connection with the interim results and participated

on several industry and investment seminars during

the year.

Going Concern

The Board confirms that Pexip qualifies as a going

concern and the financial statements have been

prepared on this basis. The Board has confirmed

that this assumption can be made on the basis of the

group’s strategy, outlook and budget.

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance Financials

Board of Directors

SIGNATURE PAGE

Oslo, March 26, 2025

Board of Directors and CEO of Pexip Holding ASA

Statement from the BoD

Kjell Skappel

Chair of the Board

Trond K. Johannessen

CEO

Irene Kristiansen

Board Member

Phillip Austern

Board Member

Silvija Seres

Board Member

Geir Langfeldt Olsen

Board Member

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsCorporate Governance

Corporate governance

Good corporate governance provides the basis for long-term value creation, to the benefit

of shareholders, employees and other stakeholders. The Board of Pexip has established

a set of governance principles in order to ensure a clear division of roles between the

Board, the executive management and the shareholders. The principles are based on the

Norwegian Code of Practice for Corporate Governance.

Pexip is subject to annual corporate governance

reporting requirements under section 3-3b of the

Norwegian Accounting Act and the Norwegian Code

of Practice for Corporate Governance, cf. section

7 on the continuing obligations of stock exchange

listed companies. The Accounting Act may be found

(in Norwegian) at www.lovdata.no. The Norwegian

Code of Practice for Corporate Governance, which

was last revised on October 14, 2021, may be found

at www.nues.no.

The annual statement on corporate governance for

2024 follows below. The statement was approved by

the Board on March 26, 2025.

1. Implementation and Reporting

on Corporate Governance

The Board is committed to building a sound and

trust-based relationship between Pexip and

the company’s shareholders, the capital market

participants, and other stakeholders.

Pexip’s overall principles for corporate governance

are approved by the Board and can be found at

https://investor.pexip.com/corporate-governance.

Pexip complies with the Norwegian Code of

Practice for Corporate Governance (the code) issued

by the Norwegian Corporate Governance Board,

latest edition of October 14, 2021.

The Board’s annual statement on how Pexip

has implemented the code is set out below. The

statement covers each section of the code, and

deviations from the code, if any, are specified under

the relevant section.

2. Business

Pexip’s articles of association are available on

Pexip’s website.

Article 3 of these articles, Pexip’s business

objectives states: “The company’s objective

is to operate, own and/or invest in businesses

or development related to telecommunication

services and telecommunication solutions,

investment in other companies or development

of other businesses, and anything related to the

foregoing”. Within the framework of its articles

of association, Pexip has established goals and

strategies for its business.

Pexip’s objectives and strategies are presented

in the annual report in section “About Pexip”. The

evaluation of Pexip’s objectives and strategies as

well as risk and risk management are described in

the Board’s report. The “Environmental, Social and

Governance” section in the Board’s report covers

considerations on sustainable value creation.

When carrying out its work on defining objectives,

strategies, and risk profiles to create value

for shareholders in a sustainable manner, the

Board takes into account financial, social and

environmental considerations. The Board has

guidelines for how it integrates considerations

related to its stakeholders into its value creation.

The Board evaluates these objectives, strategies

and risk profiles at least yearly.

3. Equity and Dividends

Equity

As of December 31, 2024, Pexip had a consolidated

equity of NOK 1,608 million, corresponding to an

equity ratio of 72%.

The Board considers that Pexip has a capital

structure that is appropriate for its objectives,

strategy and risk profile.

Dividends

In deciding whether to propose a dividend and in

determining the dividend amount, the Board will

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsCorporate Governance

comply with the legal restrictions set out in the

Norwegian Public Limited Liabilities Companies

Act and take into account the company’s capital

requirements, including capital expenditure

requirements, the company’s financial condition,

general business conditions and any restrictions

that its contractual arrangements in place at the

time of the dividend may place on its ability to pay

dividends and the maintenance of appropriate

financial flexibility.

The proposal to pay a dividend in any year is, in

addition to any legal restrictions further subject

to any restrictions in the company’s borrowing

arrangements or other contractual arrangements

in place at the time.

The company introduced a policy in 2023

to distribute 50-100% of the free cash flow

generated in the previous calendar year. For

the financial year of 2024, the Board has

recommended a dividend of NOK 2.5 per share,

consisting of an ordinary dividend of NOK 2.0

and an extraordinary dividend of NOK 0.5 as the

board recognizes that the company has excess

liquidity. The company paid a dividend of NOK 1.1

for 2023 after the AGM in 2024, and did not pay

any dividends on its Shares for the financial years

that ended December 31, 2022, 2021, 2020 and

2019.

Board Mandates to Increase the Share

Capital

At the Annual General Meeting of the company

on April 12, 2024 the Board was authorized to

increase the share capital of Pexip for general

purposes by up to NOK 156,000 in one or more

share capital increases through issuance of new

shares. The authorization was only to be used

in connection with (i) capital raisings for the

financing of the company’s business; and (ii) in

connection with acquisitions and mergers. The

authorization can be used in situations described

in the Norwegian Securities Trading Act section

6-17. The authorization is valid until the annual

general meeting in 2025, however no longer than

until June 30, 2025. The Board did not issue any

shares in relation to this authorization since the

Annual General Meeting on April 12, 2024 and up

to the date of this report.

At the Annual General Meeting of the company

on April 12, 2024 the Board was authorized to

increase the share capital of Pexip by up to NOK

156,000 in one or more share capital increases

through issuance of new shares. The authorization

was only be used in connection with issuance of

shares to the group’s employees or board members

in relation with option and incentive programs,

both individual and general. The authorization

can be used in situations as described in the

Norwegian Securities Trading Act section 6-17.

The authorization is valid until the annual general

meeting in 2025 however no longer than until June

30, 2025. No new shares have been issued by the

Board in relation to this authorization since the

Annual General Meeting on April 12, 2024 and up to

the date of this report.

4. Equal Treatment of

Shareholders

The company’s share capital is NOK 1,566,445.065,

divided into 104,429,671 shares, each with a nominal

value of NOK 0.015.

The company held 2,588,729 own shares at the end

of 2024.

The Board and the executive management are

committed to ensure equal treatment of all the

company’s shareholders and that transactions with

related parties take place on an arm’s length basis.

The notes to the consolidated financial statements

for 2024 provides details about transactions with

related parties as well as financial relationships

related to the directors and executive personnel.

5. Shares and Negotiability

The company’s shares are freely negotiable. The

articles of association do not impose any restriction

on the negotiability of the shares. There are no

general restrictions on the purchase or sale of

shares by members of the company’s management

as long as they comply with the regulations on

insider trading and in the Market Abuse Regulation.

Each share carries one vote.

6. General Meetings

All shareholders have the right to participate in the

general meetings of the company, which exercise

the highest authority of the company. The Board

ensures that its shareholders can attend and

participate in the general meeting. The annual

general meeting will take place on April 25, 2025.

The Group’s financial calendar is published via Oslo

Børs and in the investor relations section of Pexip’s

website.

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Highlights About Pexip Statement from the BoD Corporate Governance FinancialsCorporate Governance

Notice, Registration and Participation

The full notice for general meetings shall be

sent to shareholders no later than 21 calendar

days prior to the meeting. The notices for such

meetings shall include documents providing the

shareholders with sufficient detail in order for

the shareholders to make an assessment of all

the cases to be considered as well as all relevant

information regarding procedures of attendance

and voting. The notice and the documents may be

sent to or made available for the shareholders by

electronic communication, to the extent allowed

in the company’s articles of association. The Chair

of the Board and the Chair of the nomination

committee are present at the general meeting.

The company’s auditor shall normally be present

at general meetings. The right to participate and

vote at general meetings of the Company can

only be exercised by those who are shareholders

five business days prior to the general meeting

(the registration date). Shareholders who wish to

attend a general meeting of the Company shall

give the Company written notice of attendance

within a time limit given in the notice of the

general meeting, which cannot expire earlier than

two days before the general meeting.

Proxy Form, Advance Voting and Voting

Restrictions

Notices with documentation are made available

on Pexip’s website immediately after the

documentation has been issued as a stock

exchange announcement.

The Board may allow for shareholders to cast

written votes in advance in matters to be

discussed at the general meetings of the company.

Such votes may also be cast through electronic

communication. The access to cast votes in

advance is subject to the presence of a safe

method of authenticating the sender.

General-meeting notices provide information

on the procedures for attendance and voting,

including the use of proxies or permission to

cast written votes in advance. Shareholders who

cannot attend in person are encouraged to cast

written votes in advance or appoint a proxy.

A proxy form, where a proxy has been named, is

framed in such a way that the shareholder can

specify how the proxy should vote on each issue

to be considered. The notices include information

on the right to raise issues for consideration at the

general meeting, including the relevant deadlines.

Chairing Meetings, Elections, etc.

General Meetings will normally be chaired by the

General Counsel. The Board will evaluate prior to

each General Meeting whether it is appropriate to

engage an external Chair to chair the meeting.

The Chair of the Board and Chief Executive

Officer (CEO) are required to attend. Other

members of the Board are entitled to attend.

Upon elections of Nomination Committee and

Directors of the Board. The general meeting will be

facilitated for separate voting for each individual

candidate

Minutes from general meetings are published

as soon as practicable via the stock exchange’s

reporting system (www.newsweb.no, ticker code:

PEXIP) and in the investor relations section of

Pexip’s website.

7. Nomination Committee

The nomination committee is laid down in article

8 of the company’s articles of association. The

company shall have a nomination committee,

elected by the general meeting. The members of

the nomination committee should be selected to

take into account the interests of shareholders

in general, and the majority of the nomination

committee should be independent of the Board

and the executive management team. No board

member or member of the executive management

team should serve on the nomination committee.

Members of the executive management team

should not be members of the nomination

committee.

The nomination committee shall present proposals

to the general meeting regarding (i) election of the

Chair of the Board, board members and any deputy

members, and (ii) election of members of the

nomination committee. The nomination committee

shall also present proposals to the general meeting

for remuneration of the Board and the nomination

committee, which is to be determined by the

general meeting.

In its work, the nomination committee may

contact shareholders, members of the Board, the

management and external advisers. Shareholders

should be given the opportunity to propose board

member candidates to the Nomination Committee.

The nomination committee shall give considerable

weight to the wishes of the shareholders when

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Highlights About Pexip Statement from the BoD Corporate Governance FinancialsCorporate Governance

making its recommendations. Members of the

nomination committee are elected for a term of

two years but may be reelected. The members

may be removed or replaced at any time by a

resolution of the general meeting. In order to

ensure continuity, a maximum of two members

should be up for election at any time. The annual

general meeting stipulates the remuneration to be

paid to the nomination committee. The nomination

committee’s expenses shall be covered by the

company.

The general meeting shall adopt instructions for

the nomination committee.

The Annual General Meeting on April 12, 2024

re-elected Dag S. Kaada (Chair), Oddvar Fosse

and Arild Resen as members of the nomination

committee for a period up to the annual general

meeting in 2024. There have been no changes to

the composition of the committee since 2020. No

directors or members of executive management

are represented in the nomination committee.

8. Board of Directors:

Composition and Independence

Pursuant to the articles of association, the Board

shall consist of between 3 and 7 board members,

as decided by the general meeting. The Board

currently has five shareholder-elected directors.

Directors and the Chair of the Board are

currently elected by the general meeting for a

one or two year term. The composition of the

Board is intended to secure the interests of

the shareholders in general, while the directors

also collectively possess a broad business and

management background as well as in-depth

sector understanding and expertise in investment,

financing and capital markets. Weight is also

given to the Board’s ability to make independent

judgements of the business in general and of the

individual matters presented by the executive

management. Consideration has also been given

to gender representation and independence of

directors from the company and its management.

The Board does not include executive personnel.

All shareholder elected directors are independent

of Pexip’s executive management and commercial

partners. No shareholder elected directors has

done paid work for or on behalf of the company

during 2024 beyond their responsibilities as board

members, which is compensated in line with the

decision of the annual general meeting.

Details on background, experience and

independence of directors are presented on Pexip’s

website.

12 board meetings were held in 2024, in addition

to several Board workshops and committee

meetings. Each board member’s attendance at

Board meetings is recorded by the company.

Members of the Board are encouraged to own

shares. The shareholding of each board member

can be found in notes to the consolidated financial

statements and in the biography of each board

member on https://investor.pexip.com/corporate-

governance-Board.

9. The Work of the Board

The Board shall prepare an annual plan for its

work with special emphasis on goals, strategy and

implementation. The Board’s primary responsibility

shall be (i) participating in the development and

approval of the company’s strategy, (ii) performing

necessary monitoring functions and (iii) acting as

an advisory body for the executive management

team. Its duties are not static, and the focus will

depend on the company’s ongoing needs. The

Board is also responsible for ensuring that the

operation of the company is compliant with the

company’s values and ethical guidelines. The

Chair of the Board is responsible for ensuring

that the Board’s work is performed in an effective

and correct manner. The Board shall ensure that

the company has proper management with clear

internal distribution of responsibilities and duties.

A clear division of work has been established

between the Board and the executive management

team. The CEO is responsible for the executive

management of the company. All members of the

Board shall regularly receive information about the

company’s operational and financial development.

The company’s strategies shall regularly be subject

to review and evaluation by the Board. The Board

shall prepare an annual evaluation of its work.

The Role of the Board

The Board shall contribute with expertise and

experience to management. It shall set the vision,

values and long-term objectives of the company.

The Duties of the Board

The duties of the Board are subject to the existing

laws, the company’s articles of association,

powers and instructions given by the general

meeting, these instructions and the company’s

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Highlights About Pexip Statement from the BoD Corporate Governance FinancialsCorporate Governance

Corporate Governance Policy. The main duties of

the Board may be divided in:

• The Board’s administration of the company,

cf. the Norwegian Public Limited Liability

Companies Act (the Companies Act) Section

6-12

• The Board’s supervisory responsibility, cf. the

Companies Act Section 6-13

The Board shall in general get involved and consider

all matters that are significant to the company’s

financing, operational performance and long-term

development.

The Board’s Administration of the Company

The Board shall ensure an adequate organization of

the business, including appointment and discharge

of the CEO and issuing of instructions to him

(the Companies Act Section 6-2) The Board is

responsible for issuing any incentive programs for

the management of the company.

The Board shall approve the overall strategy,

business plans and budgets for the company.

The strategy discussions shall be finalized well in

time before the yearly budget process is started.

The Board shall, when necessary, timely initiate

discussions on strategic areas, especially within

re-structuring and/or change of the administration

and/or the management.

Through an adequate monthly reporting system,

the Board members shall keep themselves fully

updated on the company’s operational and financial

development. The information shall be given in a

meeting and/or in writing.

The annual report, sustainability report and the

annual accounts shall be submitted to the Board

for approval within relevant legal time frames. The

Board shall submit its annual report, which shall

include information about net profit or loss and

prospects for the future (c.f the Accounting Act

Section 3-2).

The Board shall, in cooperation with the executive

management team, issue the company’s dividend

policy and is responsible for submitting proposals

(if any) for distribution of dividend to the general

meeting.

The Board has established specific sub-committees

to follow up the administration of the Company. The

Board has an audit committee and a remuneration

committee.

The Board’s Supervisory Responsibility

The Board shall supervise the management of the

company’s business in general. The Board may

issue instructions for the CEO.

Adequate Equity

The Board shall see to that the company is at all

times funded and financed adequately in terms of

the risk and scope of the company’s business.

The Board’s Duties in Relation to the

General Meeting

The general meetings are convened by the Board

(the Companies Act Section 5-8). The Board shall

prepare all matters which shall be considered by

the general meeting.

Directors of the Board and the CEO have the

right to attend and speak at general meetings.

The Chair of the Board and the CEO shall, save

in case of legal absence, attend general meetings

unless the general meeting in each case decides

otherwise (the Companies Act Section 5-5).

The Board shall submit its proposal to profit and

loss account and balance sheet, and its proposal

to application of profit or coverage of loss to each

shareholder (the Companies Act Section 5-6 third

paragraph) preferably together with the notice

to the general meetings, but not later than one

week before the matter shall be considered by the

general meeting.

Related Parties

Any transactions, agreements or arrangements

between the Group and the Company’s

shareholders, members of the Board, members

of the executive management team or close

associates of any such parties may only be entered

into as part of the ordinary course of business

and on arm’s length market terms. All such

transactions shall where relevant comply with

the procedures set out in the Norwegian Public

Limited Liability Companies Act. The Board will

arrange for a valuation to be obtained from an

independent third party unless the transaction,

agreement or arrangement in question is

considered to be immaterial. The Company’s

financial statements shall provide further

information about transactions with related

parties in accordance with applicable accounting

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsCorporate Governance

principles. Board members shall immediately

notify the Board and members of the executive

management team shall immediately notify the

CEO (who where relevant will notify the Board) if

they have any material direct or indirect interest in

any transaction entered into by the Group.

Other Responsibilities

The Board shall be responsible for all other duties

which are attributed to the Board pursuant to

laws or the articles of association, and the Board

shall keep itself informed about or resolve matters

which in the opinion of the administration or the

Chair of the Board is natural or required.

10. Risk Management and

Internal Control

As set out in the corporate governance guidelines

of Pexip Holding ASA, the company’s Board shall

ensure that the company has sound internal

control and systems for risk management that are

appropriate in relation to the extent and nature

of the company’s activities. This document sets

out the routines for such internal control and risk

management.

Objective of the risk management and

internal control

The objective for the company’s risk management

and internal control is to manage, rather than

eliminate, exposure to risks related to the

successful conduct of the company’s business

and to support the quality of its financial reporting

and sustainability reporting. Effective risk

management and good internal control contribute

to securing shareholders’ investment in the

company and the company’s assets.

The Board’s Responsibility for Risk

Management and Internal Control

The Board shall ensure that the company’s internal

control comprises guidelines, processes, duties,

conduct and other matters that:

• facilitate targeted and effective operational

arrangements for the company and also

make it possible to manage commercial

risk, operational risk, the risk of breaching

applicable legislation and regulations as well

as all other forms of risk that may be material

for achieving the company’s commercial

objectives

• contribute to ensuring the quality of internal

and external reporting

• contribute to ensuring that the company

operates in accordance with the relevant

legislation and regulations as well as with its

internal guidelines for its activities, including

the company’s ethical guidelines and corporate

values

The Board shall form its own opinion on the

company’s internal controls, based on the

information presented to the Board. Reporting

by executive management to the Board shall

be prepared in a format which gives a balanced

presentation of all risks of material significance, and

of how the internal control system handles these

risks.

Internal Control and Risk Management

System

The Board shall develop and assess the need

for internal control systems which address the

organization and execution of the company’s

financial and sustainability reporting. These systems

shall be continuously developed in light of the

company’s growth and situation.

The Board shall also focus on the need for

developing ethical guidelines ensuring that

employees can safely communicate to the Board

matters related to illegal or unethical conduct by the

company. The Board shall ensure that the company

has the necessary routines and hired personnel to

ensure that any outsourced functions are handled in

a satisfactory manner.

Pexip’s primary internal control routines related

to financial reporting are as follows: The Finance

department prepares a monthly financial report

which also contains the most important operational

KPIs and qualitative developments, comparing the

results to previous period and to budget. This report

is reviewed by the CEO, the management team and

the Board. The Board Audit Committee reviews

each quarterly and annual financial statement and

other company reports such as the sustainability

report with a particular focus on risk elements,

such as special transactions and estimates, and the

Board reviews and approves quarterly and annual

reports.

Each year, the external auditor performs tests of the

company’s internal control routines and presents

the findings to the Board. On this basis, the Board

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Highlights About Pexip Statement from the BoD Corporate Governance FinancialsCorporate Governance

reviews management’s plan for further development

of the company’s internal control system.

Annual Review by the Board

The Board shall carry out an annual review of the

company’s most important areas of exposure to risk

and of the company’s internal control systems. The

Board’s review shall cover all matters included in

reports to the Board during the course of the year,

together with any additional information that may

be necessary to ensure that the Board has taken

into account all matters related to the company’s

internal control.

When conducting their review, the Board shall pay

attention to:

• changes relative to previous years’ reports in

respect of the nature and extent of material

risks and the company’s ability to cope with

changes in its business and external changes

• the extent and quality of management’s routine

monitoring of risks and the internal control

system and, where relevant, the work of the

internal audit function

• the extent and frequency of management’s

reporting to the Board on the results of such

monitoring, and whether this reporting makes

it possible for the Board to carry out an overall

evaluation of the internal control situation in the

company and how risks are being managed

• instances of material shortcomings or

weaknesses in internal control that come

to light during the course of the year which

have had, could have had or may have had a

significant effect on the company’s financial

results or financial standing

• to which extent the company’s external

reporting process functions

The Board shall provide an account in the annual

report of the main features of the company’s

internal control and risk management systems as

they relate to the company’s financial reporting.

11. Remuneration of the Board of

Directors

The general meeting determines the Board’s

remuneration annually, normally in advance, on the

basis of recommendations from the nomination

committee. Remuneration of Board members

shall be reasonable and based on the Board’s

responsibilities, work, time invested and the

complexity of the enterprise. The Board shall be

informed if individual Board members perform tasks

for the company other than exercising their role

as Board members. Work in sub-committees may

be compensated in addition to the remuneration

received for Board membership. This is further

described in the Pexip’s Remuneration Guidelines

and Remuneration report for 2024.

With the exception of the Chair of the Board,

none of the directors have undertaken any special

assignments for Pexip other than their work on the

Board and Board committees. Directors are unable

to accept such assignments without approval from

the Board in each case.

12. Salary and Other

Remuneration of Executive

Personnel

The Board has a remuneration committee. The main

responsibilities of the committee are to evaluate and

propose the remuneration guidelines and issue an

annual report on the compensation of the executive

management team, which shall be included in the

company’s annual accounts pursuant to applicable

rules and regulations, including accounting

standards, promulgated from time to time. This

is further described in Pexip’s Remuneration

Guidelines and Remuneration report for 2024.

Changes to the Executive Management and

the Board

The annual general meeting on April 12, 2024 re-

elected the following Board, in accordance with the

nomination committee’s proposal:

i. Kjell Skappel, chair

iv. Irene Kristiansen

v. Phillip Austern

vi. Geir Langfeldt Olsen

vii. Silvija Seres

Kjell Skappel, Irene Kristiansen, Philip Austern, Geir

Langfeldt Olsen and Silvija Seres were elected for a

term of one year. No deputy members were elected.

There were no changes to the Executive

Management in 2024.

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsCorporate Governance

13. Information and

Communications

The Board has established guidelines for investor

communication. Pexip’s communication with

the capital markets is based on the principles of

transparency, full disclosure and equality. These

guidelines are published on investor.pexip.com.

The CEO and CFO are responsible for the main

dialogue with the investor community, hereunder

the company’s shareholders.

Pexip follows the Norwegian corporate governance

code. This includes the code’s policy and principles

for publication of relevant information. Therefore,

information shall at all times be available on

Pexip’s investor website (investor.pexip.com).

English will be the primary language used

for investor communication. Stock exchange

notices and other formal communications will

be published in English. Information to the stock

market is published in the form of annual and

interim reports, press releases, stock exchange

announcements and investor presentations. All

information considered relevant and significant for

valuing the company’s shares will be distributed

and published in English via Oslo Børs disclosure

system, www.newsweb.no, and via Pexip’s investor

website (investor.pexip.com) simultaneously.

Pexip holds public presentations in connection

with the announcement of quarterly and annual

financial results as well as strategic updates. The

presentations are available as live presentations

via the internet. Presentation material is made

available via Oslo Børs’ news site www.newsweb.

no and investor.pexip.com.

Pexip gives weight to maintaining an open and

ongoing dialogue with the investor community,

hereunder frequent meetings with investors, fund

managers, analysts and journalists. The company

is also present at relevant investor conferences

and seminars. Presentations held at such events

are made public via investor.pexip.com.

The guidelines for investor communication state

that in the last three weeks prior to distribution

and publication of company results, no meetings

with shareholders, investors or analyst are to be

held. Pexip also has the right to put into effect

Silent Periods in connection with other corporate

events. In Silent Periods, no comments will be

given to other stakeholders, such as the press, on

Pexip’s results and future development.

Reporting of financial and other information shall

be timely and accurate. The main purpose of

this information presents a complete picture of

Pexip’s financial results and position as well as

articulating Pexip’s long-term goals and potential,

including its strategy, value drivers and important

risk factors.

The Group publishes a financial calendar every

year with an overview of the dates of important

events, including the general meeting, publication

of interim reports and open presentations. This

calendar is made available as a stock exchange

announcement and on Pexip’s website as soon as

it has been approved by the Board.

14. Takeovers

The Board has established guiding principles for

responding to possible takeover bids.

In a take-over process, should it occur, the Board

and the executive management team each have

an individual responsibility to ensure that the

company’s shareholders are treated equally and

that there are no unnecessary interruptions to the

company’s business activities. The Board has a

particular responsibility in ensuring, to the extent

possible, that the shareholders have sufficient

information and time to assess the offer.

In the event of a take-over process, the Board shall

ensure that:

• the Board will not seek to hinder or obstruct

any takeover bid for the company’s operations

or shares unless there are particular reasons

for doing so;

• the Board will not undertake any actions

intended to give shareholders or others an

unreasonable advantage at the expense of

other shareholders or the Company;

• the Board will not institute measures with the

intention of protecting the personal interests

of its members at the expense of the interests

of the shareholders; and

• the Board shall be aware of the particular

duty it has for ensuring that the values and

interests of the shareholders are protected.

Annual Report 2024

Highlights About Pexip Statement from the BoD Corporate Governance FinancialsCorporate Governance

In the event of a take-over bid, the Board

will, in addition to complying with relevant

legislation and regulations, seek to comply with

the recommendations in the Norwegian Code

of Practice for Corporate Governance unless

there are particular reasons not to. This includes

obtaining a valuation from an independent

expert. On this basis, the Board will seek make

a recommendation as to whether or not the

shareholders should accept the bid.

15. Auditor

The external auditor, Deloitte, annually presents

its overall plan for the audit of Pexip for the audit

committee’s consideration.

The external auditor’s involvement with the Board

during 2024 related to the following:

Presented the main features of the audit work.

• Attended all audit committee meetings

approving the financial statements, reviewing

possible significant changes in accounting

principles, assessing significant accounting

estimates, and considering all possible

disagreements between the external auditor

and executive management.

• Reviewed Pexip’s internal control procedures

and systems, including the identification of

weaknesses and proposals for improvements.

• Held a meeting with the Board without the

presence of the executive management.

• Confirmed its independence and provided an

overview of non-audit services provided to

Pexip.

• During 2024, the external auditor attended 5

meetings with the audit committee in addition

to one meeting with the Board.

Pursuant to the code, the Board has established

guidelines for Pexip’s management use of the

external auditor for non-audit services.

The Board reports annually to the annual general

meeting on the external auditor’s total fees, split

between audit and non-audit services. The annual

general meeting approves the auditor’s fees for the

holding company.

Highlights About Pexip Statement from the BoD Corporate Governance Financials

Annual Report 2024Corporate Governance

Board of Directors

SIGNATURE PAGE

Oslo, March 26, 2025

Board of Directors and CEO of Pexip Holding ASA

Kjell Skappel

Chair of the Board

Trond K. Johannessen

CEO

Irene Kristiansen

Board Member

Phillip Austern

Board Member

Silvija Seres

Board Member

Geir Langfeldt Olsen

Board Member

Highlights About Pexip Statement from the BoD Financials

Annual Report 2024Corporate Governance

Executive Management

Øystein Hem

Chief Financial Officer

Patricia Auseth

Chief Marketing Officer

Trond K. Johannessen

Chief Executive Officer

Ingrid Woodhouse

Chief People Officer

Helge Hoff Hansen

Chief Operations Officer

Åsmund O. Fodstad

Chief Revenue Officer

Ian Mortimer

Chief Technology Officer

Highlights About Pexip Statement from the BoD Financials

Annual Report 2024Corporate Governance

Board of Directors

Geir Langfeldt Olsen

Board Member

Kjell Skappel

Chair of the Board

Silvija Seres

Board Member

Irene Kristiansen

Board Member

Phillip Austern

Board Member

Highlights About Pexip Statement from the BoD Corporate Governance Financials Annual Report 2024

Financial Statements

Pexip Group 2024

Highlights About Pexip Statement from the BoD Corporate Governance

Annual Report 2024Financials

Consolidated Statement of Profit or Loss

(NOK 1,000) Notes 2024 2023

Revenue 3 1 118 562 993 582

Cost of sale 105 102 99 004

Salary and personnel expenses 4,23,24 653 959 621 435

Other operating expenses 5 152 787 159 880

Other gains and losses 29 15 936 10 908

EBITDA 190 778 102 355

Depreciation and amortization 9,10,12 78 137 126 425

Impairment losses* 9, 11, 30 3 104 72 687

Operating profit or loss 109 537 -96 756

Financial income 6 28 665 19 194

Financial expenses 6 -3 397 -2 707

Net gain and loss on foreign exchange differences 6 29 352 16 737

Financial income/- expenses - net 54 620 33 224

Profit or loss before income tax 164 156 -63 532

Income tax expense 7 46 251 16 253

Profit or loss for the year 117 905 -79 786

Profit or loss is attributable to:

Owners of Pexip Holding ASA 117 905 -79 786

Earnings per share

Basic earnings per share 8 1.16 -0.79

Diluted earnings per share 8 1.12 -0.79

Period January 1 - December 31

The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes.

* The line item depreciation and amortization and impairment losses have been reclassified for 2023.

More information in note 30.

Highlights About Pexip Statement from the BoD Corporate Governance

Annual Report 2024Financials

Consolidated Statement of Comprehensive Income

(NOK 1,000) 2024 2023

Profit or loss for the year 117 905 -79 786

Items that may be reclassified to profit or loss:

Exchange difference on translation of foreign operations 20 301 7 113

Total comprehensive income for the year 138 206 -72 672

Total comprehensive income is attributable to:

Owners of Pexip Holding ASA 138 206 -72 672

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Period January 1 - December 31

Highlights About Pexip Statement from the BoD Corporate Governance

Annual Report 2024Financials

Consolidated Statement of Financial Position

(NOK 1,000) Notes 2024 2023

ASSETS

Non-current assets

Property, plant and equipment 3,9 20 124 11 580

Right-of-use assets 3,10 51 793 42 730

Goodwill 11 598 998 598 998

Other intangible assets 3,12 95 749 125 516

Deferred tax asset 7 140 225 170 629

Contract costs 3,18 325 086 299 000

Receivables 4,13,19 554 1 163

Other assets 4 841 2 109

Total non-current assets 1 237 369 1 251 725

Current assets

Trade and other receivables 4,13,19 332 832 183 716

Contract assets 18 6 737 39 210

Other current assets 14 19 778 23 716

Financial Investments 19 206 066

Cash and cash equivalents 15,19 422 100 522 692

Total current assets 987 514 769 334

TOTAL ASSETS 2 224 882 2 021 059

(NOK 1.000) 2024 2023

EQUITY AND LIABILITIES

Equity

Total equity 16 1 607 952 1 554 823

Non-current liabilities

Borrowings 17,19 1 984 2 190

Lease liabilities 10,19 43 510 31 427

Deferred tax liabilities 7 39 755 27 193

Other payables 19 28 69

Total non-current liabilities 85 277 60 879

Current liabilities

Trade and other payables 19,21 156 534 130 374

Contract liabilities 18 354 892 255 258

Current tax liabilities 7 2 104 3 525

Borrowings 17,19 132

Lease liabilities 10,19 18 123 16 069

Total current liabilities 531 653 405 357

Total liabilities 616 930 466 238

TOTAL EQUITY AND LIABILITIES 2 224 882 2 021 059

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

Date as of December 31

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Annual Report 2024Financials

Board of Directors

SIGNATURE PAGE

Oslo, March 26, 2025

Board of Directors and CEO of Pexip Holding ASA

Kjell Skappel

Chair of the Board

Trond K. Johannessen

CEO

Irene Kristiansen

Board Member

Phillip Austern

Board Member

Silvija Seres

Board Member

Geir Langfeldt Olsen

Board Member

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Consolidated Statement of Changes in Equity

Notes Share

capital

premium

Other

reserves

Translation

differences

Retained

earnings

Total

equity

(NOK 1,000)

Balance at January 1, 2023 1 521 2 115 938 25 265 7 863 -554 018 1 596 571

Profit or loss for the year -79 786 -79 786

Other comprehensive income for the year 7 113 7 113

Total comprehensive income for the year 7 113 -79 786 -72 672

Buy/sell treasury share 16 3 106 109

Share-based payments 23,4 30 815 30 815

Balance at December 31, 2023 1 523 2 115 938 56 186 14 977 -633 803 1 554 823

Balance at January 1, 2024 1 523 2 115 938 56 186 14 977 -633 803 1 554 823

Profit or loss for the period 117 905 117 905

Other comprehensive income for the year 20 301 20 301

Total comprehensive income for the year 20 301 117 905 138 206

Capital increase/share issue 16

Buy/sell treasury share 16 4 605 609

Dividend paid to company’s shareholders 22 -111 745 -111 745

Share-based payments 23, 4 26 060 26 060

Balance at December 31, 2024 1 527 2 004 193 82 851 35 277 -515 898 1 607 952

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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Consolidated Statement of Cash Flows

(NOK 1,000) Notes 2024 2023

Cash flow from operating activities

Profit or loss before income tax 164 156 -63 532

Adjustments for

Depreciation, amortization and net impairment losses 9,10,12 81 241 199 112

Non-cash - share based payments 24 26 060 36 431

Interest income/expenses - net 6 -19 312 -16 500

Net exchange differences 6 -16 654 -7 936

Fair value movements on Financial Assets at fair value through profit and loss 19 -6 066

Other adjustments 629 139

Change in operating assets and liabilities

Change in trade, other receivables and other assets 4,13,18,19 -110 197 -2 596

Change in trade, other payables and contract liabilities 18,19,21 109 390 20 718

Interest received 6 22 472 19 004

Income taxes paid/refunded 7 -7 241 -7 247

Net cash inflow/outflow from operating activities 244 478 177 593

Cash flow from investing activities

Payment for property, plant and equipment 9 -16 122 -16 571

Payment of software development cost 12 -25 700 -34 629

Proceeds from sale of property, plant and equipment 1 163

Payment for financial assets at fair value through profit or loss 19 -200 000

Net cash inflow/outflow from investing activities -240 660 -51 201

Cash flow from financing activities

Dividend paid to company’s shareholder 22 -111 745

Proceeds from issuance of ordinary shares 16,20 -3

Proceeds from borrowings 17,20 301

Repayment of borrowings 10,20 -470 -4 000

Principal element of lease payments 6 -13 405 -21 737

Interest paid 16 -3 160 -2 505

Sale/(purchase) of treasury shares 609

Net cash inflow/outflow from financing activities -127 871 -28 244

Net increase/(decrease) in cash and cash equivalents -124 052 98 148

Cash and cash equivalents start of the period 522 692 419 306

Effects of exchange rate changes on cash and cash equivalents 23 460 5 238

Cash and cash equivalents end of the period 422 100 522 692

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Period January 1 - December 31

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Note 1. General

Pexip Holding ASA is the parent company in the Pexip

Group. The Group includes the parent company Pexip

Holding and its wholly owned subsidiary Pexip AS, which

have the wholly owned subsidiaries Pexip Inc, Pexip Ltd,

Videxio Asia Pacific Ltd, Pexip Australia Pty Ltd, Pexip

Singapore Pte Ltd, Pexip France SAS, Pexip Germany

GmbH, Pexip Netherlands B.V, Pexip Belgium NV, Pexip

Japan GK, Pexip Spain SL and Pexip Italy S.R.L. The

Group’s head office is located at Lilleakerveien 2a, 0283

OSLO, Norway. Pexip Holding ASA is a public listed

company on the Oslo Stock Exchange (Norway) under the

ticker PEXIP.

Pexip is a global technology company that delivers a

leading, end-to-end video conferencing platform and

digital infrastructure. Pexip offers both the self-hosted

software application and as-a-service deployment

options for enterprise video conferencing, built on

Pexip’s proprietary Infinity technology. Both offerings are

delivered as a recurring subscription-based model.

The consolidated financial statements of Pexip Holding

ASA and its subsidiaries (collectively, the Group) for the

year ended December 31, 2024 was authorized for issue

by a resolution of the directors on March 26, 2025.

1.1 Adoption of new and revised accounting

standards

There are no new or changed standards and amendments

for the annual report period commencing on the 1st

of January 2024 that have any material impact on the

amounts recognized or disclosed. The following new

standards have been adopted, through no effect has been

identified;

• Classification of Liabilities as current or Non-current

liabilities with covenants – amendments to IAS 1

• Lease Liability in Sale and leaseback – Amendments

to IFRS 16

• Supplier Finance arrangements – amendments to IAS

7 and IFRS 7

1.1.2 New and revised IFRS standards in

issue but not yet effective

The Group has not early adopted new and revised IFRS

standards published but not mandatory for December 31,

2024 reporting periods.

• Amendments to IAS 21 – lack of exchangeability

of currencies, effective for periods beginning after

January 1, 2025

• Amendments to the Classification and

measurement of Financial instruments –

Amendments to IFRS 9 and IFRS 7, effective for

periods beginning after January 1, 2026

• IFRS 19 Subsidiaries without public accountability:

Disclosures, effective for periods beginning after

January 1, of 2027

• IFRS 18 Presentation and Disclosure in Financial

statements, effective for periods beginning after

January 1, 2027

The Group does not expect that the adoption of these

Standards will have a material impact on the financial

statements in future periods. The implementation of

IFRS 18 is expected to be pervasive on presentation and

disclosures, in particular those related to the statement

of financial performance and providing management-

defined performance measures within the financial

statements.

Note 2. Accounting principles

2.1 Basis for preparation

The financial accounts for Pexip Holding ASA “the

Parent company” together with its subsidiary Pexip

AS, and its wholly-owned and controlled subsidiaries,

together called “the Group”, have been prepared

following IFRS® Accounting Standards adopted by the

EU (IFRS), relevant interpretations, and the Norwegian

Accounting Act.

The consolidated financial statements have been

prepared on a historical cost basis, except where IFRS

explicitly requires the use of other values.

The Parent company has NOK as its functional

currency; the financial accounts are presented in

NOK, rounded to the nearest thousand if nothing else

is noted. As a result of the rounding differences, it is

possible that amounts and percentages do not add up

to the total.

2.2 Basis of consolidation

The consolidated financial statements comprise the

Parent Company’s financial statements and subsidiaries

as of December 31, 2024.

Control is established when the Parent Company is

exposed to, or has rights to, variable returns from its

involvement with the entity and could affect those

returns through its power over the entity.

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Consolidation is done using the acquisition method and

begins when control over the subsidiary is obtained. The

consolidation stops when the control ceases.

Where necessary, adjustments are made to the financial

statements of subsidiaries to bring the accounting policies

used into line with the Group’s accounting policies.

Intercompany transactions, balances, and unrealized

gains on transactions between group companies are

eliminated. Unrealized losses are also eliminated unless

the transaction provides evidence of an impairment of the

transferred asset.

Profit or loss and each component of other comprehensive

income (OCI) are attributed to the equity holders of the

Parent Company.

If the Group loses control over a subsidiary, it

derecognizes the related assets (including goodwill),

liabilities, non-controlling interest, and other equity

components, while any resultant gain or loss is recognized

in profit or loss. Any investment retained is recognized at

fair value.

A change in the ownership interest of a subsidiary,

without a loss of control, is accounted for as an equity

transaction.

2.3 Summary of significant accounting

policies

2.3.1 Business combinations and goodwill

The acquisition method of accounting is used to account

for all business combinations. The consideration

transferred for the acquisition of a subsidiary comprises

the:

• fair values of the assets transferred.

• liabilities incurred to the former owners of the

acquired business.

• equity interests issued by the group.

• fair value of any asset or liability resulting from a

contingent consideration arrangement, and

• fair value of any pre-existing equity interest in the

subsidiary.

On the acquisition date, the identifiable assets acquired

and the liabilities assumed are recognized at their fair

value, except for:

• Deferred tax assets or liabilities are recognized and

measured under IAS 12 - Income taxes.

• Liabilities or equity instruments related to share-

based payment arrangements of the acquiree,

or share-based payment arrangements of the

Group entered to replace share-based payment

arrangements of the acquiree, are measured per IFRS

2 at the acquisition date.

• the value of a reacquired right is recognized as an

intangible asset based on the remaining contractual

term of the related contract regardless of whether

market participants would consider potential

contractual renewals when measuring its fair value.

Acquisition-related costs are recognized in profit or loss as

incurred.

Contingent consideration is classified either as equity or

financial liability. Amounts classified as

financial liabilities are subsequently remeasured to fair

value, with changes in fair value recognized in profit or

loss.

Goodwill is measured as the excess of the sum of the

consideration transferred over the fair value of the net of

the acquisition date amounts of the identifiable assets

acquired, and the liabilities assumed.

Goodwill arising in a business combination is not

amortized. Initially, goodwill is recognized at cost.

Thereafter, goodwill is measured at cost less accumulated

impairment. For the purpose of impairment testing,

goodwill acquired in a business combination is, from the

acquisition date, allocated to each of the Group’s cash-

generating units that are expected to benefit from the

combination, irrespective of whether other assets or

liabilities of the acquiree are assigned to those units. The

carrying amount of goodwill is tested for impairment at

least annually. Impairment losses are recognized directly

in profit for the year and are not subsequently reversed.

on reasonable, relevant, and supportable information and

represent the management’s best estimate.

2.3.2 Foreign currencies

Transactions and balances

Transactions in foreign currencies are translated into the

respective functional currencies of Group companies at

the exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign

currencies are translated into the functional currency at

the exchange rate at the reporting date. Differences in

settlement or translation of monetary items are generally

recognized in profit or loss.

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Non-monetary assets and liabilities measured at fair value

in a foreign currency are translated into the functional

currency at the exchange rate when the fair value is

determined.

Non-monetary items that are measured based on the

historical cost in a foreign currency are translated at

the exchange rate at the date of the transaction. The

gain or loss arising on translation of non-monetary

items measured at fair value is treated in line with the

recognition of the gain or loss on the change in fair value

of the item (i.e., translation differences on items whose

fair value gain or loss is recognized in OCI or profit or loss

are also recognized in OCI or profit or loss, respectively.)

Group companies

The Group’s presentation currency is NOK. The results

and financial position of foreign operations that have

a functional currency different from the presentation

currency are translated into the presentation currency as

follows:

• assets and liabilities for each balance sheet presented

are translated at the closing rate at the date of that

balance sheet.

• income and expenses for each statement of profit

or loss and statement of comprehensive income are

translated at average exchange rates (unless this is

not a reasonable approximation of the cumulative

effect of the rates prevailing on the transaction dates,

in which case income and expenses are translated at

the dates of the transactions), and

• all resulting exchange differences are recognized in

other comprehensive income.

2.3.3 Current versus non-current classification

An asset is classified as current when it is expected to

be realized or intended for sale or consumption in the

Group’s normal operating cycle. It is held primarily to be

traded or expected/due to be realized or settled within

twelve months after the reporting date. Other assets are

classified as non-current.

A liability is classified as current when it is expected to

be settled in the Group’s normal operating cycle, is held

primarily to be traded, the liability is due to be settled

within twelve months after the reporting period or if

the Group does not have an unconditional right to defer

settlement of the liability for at least twelve months after

the reporting period. All other liabilities are classified as

non-current.

Deferred tax assets and liabilities are classified as non-

current assets and liabilities.

2.3.4 Revenue from contracts with customers

Revenue from contracts with customers is recognized

when control of the goods or services are transferred to

the customer at an amount that reflects the consideration

to which the Group expects to be entitled in exchange for

those goods and services.

Revenue from the sale of software licenses

Infinity software licenses are classified as software

licenses where the customer is provided with a right to use

the software for a period of time, typically one year, as it

exists when made available to the customer. Revenue from

distinct software licenses is recognized at the point in

time when the software is made available to the customer

and the right to use the software has commenced. Most of

the Infinity license agreements with customers are annual

contracts. Invoices are generated when the license key is

made available to the customers (at a point in time), and

most invoices are payable within 30 days.

Revenue from the sale of cloud services

Cloud service licenses, “software as a service”, entitle

the customers to use the Pexip software together with

the Group’s IP and production network over the contract

period. Revenues from the sale of Cloud Services

are recognized overtime on a straight-line basis over

the license period. More than 90 % of these license

agreements are yearly prepaid contracts. Invoices are

generated monthly or yearly, and most invoices are

payable within 30 days.

Partner fees

The Group has a partner program that provides the

partner with the right to sell The Group’s services. The

partner receives support, training and access to the

service, and the performance obligations related to partner

fees are satisfied on an ongoing basis. Revenue related to

partner fees is thus recognized linearly over time.

Most of the partner fees are invoiced, as are annual

agreements. Invoices are generated at contract inception

and payable within 30 days.

Revenue from the sale of support and maintenance

The Group offers support and maintenance services

to its customers. For services related to the software

licenses, the performance obligations related to support

and maintenance are satisfied on an ongoing basis,

and revenue related to the sales of services are thus

recognized on a linear basis over time.

Most of the maintenance and support agreements are

related to the license period. Proof of concept (POC) is a

professional service offered for up to 6 months. Revenue

from these contracts is recognized linearly throughout

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Annual Report 2024Financials

the contract period. The Group also has customers with

service contracts of 1-3 months. Revenues related to the

sale of services are recognized on a linear basis over time.

Transaction price

The Group determines the transaction price to be the

amount of consideration which it expects to be entitled in

exchange for transferring the promised goods and services

to the customer, net of discounts and sales-related taxes.

Sales related taxes are regarded as collected on behalf

of the authorities. When the contract includes a variable

amount, the Group estimates the amount of consideration

expected to receive from the customer using either the

expected value method or the most likely method. The

method is used consistently throughout the contract. The

Group has few contracts with variable consideration.

The Group uses the practical expedient in IFRS 15 not

adjust for a financing component. Where applicable, the

variable consideration is estimated using the most likely

amount method. The estimate is revised and updated

every quarter.

The Group considers whether there are other promises in

the contract that are separate performance obligations

to which a portion of the transaction price needs to be

allocated.

Contract balances

Contract balances consist of client-related assets and

liabilities. Contract assets relate to consideration for work

complete but not yet invoiced at the reporting date. The

contract assets are transferred to trade receivables when

the right to payment has become unconditional, usually

when invoices are issued to the customers.

When a client pays consideration in advance, or an amount

of consideration is due contrac¬tually before transferring

of the license or ser¬vice. The amount received in advance

is presented as a liability. Contract liabilities rep¬resent

mainly prepayments from clients for unsatisfied or

partially satisfied performance obligations concerning

licenses and services.

Contract assets are within the scope of impairment

requirements in IFRS 9. For con¬tract assets, the

simplified approach is applied, and the expected loss

provision is measured at the estimate of the lifetime

expected credit losses.

Costs of obtaining or fulfilling contracts with customers

The Group pays sales commission to its employees based

on actual sales. Commissions that are incremental costs

of obtaining a contract with a customer are recognized

as an asset if the costs are expected to be recovered.

Subsequently, the asset is amortized on a systematic

basis consistent with the transfer to the customer of the

goods or services to which the asset relates. This is usually

the expected total contract period and includes expected

renewals. The expected contract period is seven and half

years for software licenses and about five years for Cloud

services. Further information regarding commission and

salary is disclosed in note 4.

2.3.5 Government grants

Government grants are recognized with reasonable

assurance that the grant will be received, and all attached

conditions will be complied with. When the grant relates

to an asset, it reduces its carrying amount. The grant is

then recognized in profit or loss over the useful life of

the depreciable asset by way of a reduced depreciation

charge. All government grants in Pexip has been related to

the intangible asset own software development.

2.3.6 Employee benefits

Share Based payment transactions

The Group provides incentives to employees in the form of

equity-settled share-based instruments.

None of the awards that have been issued as equity

settled have been settled in cash previously.

The Company has two incentive programs: share-based

programs for employees and management and key

employees.

Equity-settled share based compensation are measured at

fair value at the grant date and recognized in the income

statement under salary and personnel expenses over the

period—the final right of the options vest. The balancing

item is recognized directly in equity.

The number of options expected to vest at expiry is

estimated on the initial recognition of share options.

Subsequently, the estimated number of vested options is

revised for changes so that the total recognition is based

on the actual number of vested options.

The fair value of the instruments granted is estimated

using either the Black-Scholes model or Monte-Carlo

simulation with the parameters stated in note 24.

The dilutive effect of outstanding options is reflected as

additional share dilution in diluted earnings per share

(further details are given in note 8).

Termination benefits

Termination benefits are payable when employment is

terminated by the group before normal retirement date,

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Annual Report 2024Financials

or when the employee accepts voluntary redundancy

in exchange for these benefits. The group recognized

termination benefits at the earliest of a) when the group

no longer can withdraw the offer of termination benefits

and b) when the Group recognizes a restructuring cost

according to IAS 37 that involves termination benefits.

In the case where not all employees have signed a

termination contract as of reporting period, Pexip will

measure the remaining termination benefits based on

expected number of employees that will accept the offer.

2.3.7 Other intangible assets

Intangible assets other than goodwill acquired

separately are measured on initial recognition at cost.

Other intangible assets include software, trademarks,

and client contracts. The cost of intangible assets

acquired in a business combination is their fair value

at the date of acquisition. Following initial recognition,

intangible assets are carried at cost less any

accumulated amortization and accumulated impairment

losses.

Intangible assets with finite useful lives are amortized

straight-line over their estimated useful lives. The

amortization expense is recognized in the statement of

profit or loss. The estimated useful life and amortization

method is reviewed at the end of each reporting period,

with the effect of any changes on estimates being

accounted for on a prospective basis.

Gains or losses arising from the derecognition of an

intangible asset are measured as the difference between

the net disposal proceeds and the asset’s carrying

amount. They are recognized in the statement of profit

or loss when the asset is derecognized.

The estimated useful lives of intangible assets are as

follows:

• Software: 5 years

• Client contracts: 5 years

• Trademarks: 5 years

Research and development costs

Development expenditures are capitalized only when the

following criterion for recognition is met;

• it is technically feasible to complete the software so

that it will be available for use

• management intends to complete the software and

use or sell it

• there is an ability to use or sell the software

• it can be demonstrated how the software will

generate probable future economic benefits

• adequate technical, financial and other resources

to complete the development and to use or sell the

software are available, and

• the expenditure attributable to the software during

its development can be reliably measured.

The assets are amortized over their expected useful life

once the assets are available for use. During the period

of development, the asset is tested for impairment

annually. Development costs that do not meet the

criteria for capitalization are expensed as incurred.

2.3.8 Property, plant, and equipment

Tangible assets are recorded at historical cost, less

accumulated depreciation, and possible impairment.

Depreciation is recorded on a straight-line basis over the

estimated useful life of an asset, which is as follows:

• Land and buildings: 5 years

• Plant and machinery: 3 to 5 years

• Fittings and fixtures: 3 to 5 years

Gains or losses on the disposal of tangible assets are

included in the statement of profit or loss. The residual

values, useful lives, and methods of depreciation of

property, plant and equipment are reviewed at each

financial year-end and adjusted prospectively, if

appropriate.

2.3.9 Leases

The Group as lessee

The Group assesses whether a contract is or contains a

lease at the contract’s inception.

The Group recognizes a right-of-use asset and a

corresponding lease liability concerning all lease

arrangements in which it is the lessee, except for short-

term leases (defined as leases with a lease term of 12

months or less) and leases of low-value assets (such as

tablets and personal computers, small items of office

furniture and telephones). For these leases, the Group

recognizes the lease payments as an operating expense

on a straight-line basis over the lease term. The Group

presents interest expense on lease liabilities under

finance expenses and the depreciation charge on the

right-of-use asset under depreciation and amortization

in the profit and loss statement.

Right-of-use assets are measured at cost, less any

accumulated depreciation and impairment losses and

adjusted for any remeasurement of lease liabilities. The

cost of right-of-use assets includes the amount of lease

liabilities recognized, initial direct costs incurred, and

lease payments made at or before the commencement

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date less any lease incentives received. Right-of-use

assets are depreciated on a straight-line basis over the

shorter of the lease term and the estimated useful lives of

the assets, as follows:

• Buildings: 2-10 years

• Equipment: 3-5 years

The right-of-use assets are also subject to impairment.

Refer to the accounting policies in section 2.3.11

Impairment of intangible assets and property, plant, and

equipment.

The lease liability is initially measured at the present

value of the lease payments that are not paid at the

commencement date, discounted by using the rate implicit

in the lease. If this rate cannot be readily determined, the

Group uses its incremental borrowing rate.

At the commencement date, the Group assesses whether

they are reasonably certain to exercise an option to extend

the lease or purchase the underlying asset or not to

exercise an option to terminate the lease. This assessment

is reflected in the initial measurement of the lease

contract.

The lease liability is subsequently measured by increasing

the carrying amount to reflect interest on the lease liability

(using the effective interest method) and reducing the

carrying amount to reflect the lease payments made.

The lease liability and right-of-use asset are presented as

separate lines in the consolidated statement of financial

position.

2.3.10 Impairment of intangible assets and

property, plant, and equipment

Goodwill and intangible assets that have an indefinite

useful life are not subject to amortization and are tested

annually for impairment or more frequently if events

or changes in circumstances indicate that the carrying

amount might be impaired. Other assets are tested for

impairment whenever events or changes in circumstances

indicate that the carrying amount may not be recoverable.

An impairment loss is recognized as the amount by which

the asset’s carrying amount exceeds its recoverable

amount. The recoverable amount is the higher asset’s fair

value, lower disposal costs, and value in use. To assess

impairment, assets are grouped at the lowest levels.

There are separately identifiable cash inflows largely

independent of the cash inflows from other assets or

groups of assets (cash-generating units). Non-financial

assets other than goodwill that have historically

been impaired are reviewed for possible reversal of

the impairment at the end of each reporting period.

Disclosures relating to impairment testing are found in

note 11.

2.3.11 Taxes

The period’s income tax expense or credit is the tax

payable on the current period’s taxable income, based

on each jurisdiction’s applicable income tax rate,

adjusted for changes in deferred tax assets and liabilities

attributable to temporary differences, and unused tax

losses.

Current income tax

The current income tax charge is calculated based on

the tax laws enacted or substantively enacted at the end

of the reporting period in the countries where the Group

operates and generates taxable income. Management

periodically evaluates positions taken in tax returns

regarding situations in which applicable tax regulation

is subject to interpretation. Management establishes

appropriate provisions based on amounts expected to be

paid to the tax authorities.

Deferred tax

Deferred income tax is provided in full, using the liability

method, on temporary differences arising between

assets and liabilities’ tax bases and their carrying

amounts in the consolidated financial statements.

However, deferred tax liabilities are not recognized if

they emerge from the initial recognition of goodwill.

Deferred income tax is determined using tax rates (and

laws) that have been enacted or substantially enacted by

the end of the reporting period and are expected to apply

when the related deferred income tax asset is realized,

or the deferred income tax liability is settled.

Deferred tax assets are recognized only if it is probable

that future taxable amounts will be available to utilize

the temporary differences and losses.

Deferred tax assets and liabilities are offset when there

is a legally enforceable right to offset current tax assets

and liabilities. The deferred tax balances relate to the

same taxation authority. Existing tax assets and tax

liabilities are offset. The entity has a legally enforceable

right to offset and intends to settle on a net basis or

realize the asset and settle the liability simultaneously.

Current and deferred tax is recognized in the income

statement, except that it relates to items recognized in

other comprehensive income or directly in equity.

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2.3.12 Financial instruments

Financial assets and financial liabilities are recognized

in the Group’s statement of financial position when the

Group becomes a party to the contractual provisions of

the instrument.

Financial assets and financial liabilities are initially

measured at fair value plus transaction costs in the case

of a financial instrument not at fair value through profit

or loss.

The Group has classified its financial instruments

as either measured at amortized cost or fair value

through profit or loss for subsequent measurement.

The classification depends on the Group’s business

model for managing them and the contractual cash-flow

characteristics of the instrument.

At amortized cost, financial assets are held to collect

the contractual cash-flow and where the cash-flows

are solely payments of principal and interest on the

outstanding principal. The category is included in the

consolidated statement of financial position financial

line items Trade and other receivables (current and non-

current), Other assets, Other current assets and cash

and cash equivalents. Non-current assets are measured

at amortized cost using the effective interest method,

reduced by any impairment loss. Due to their short-term

nature, the carrying amounts of line items classified as

current are assumed to be the same as their fair values.

Short-term loans and receivables are for practical

reasons not amortized unless the effect is material.

The category financial liabilities at amortized cost are

included in the consolidated statement of financial

position line items Borrowings (current and non-

current), and Trade and other payables. Non-current

financial liabilities are measured at amortized cost

using the effective interest method. Effective interest

is recognized in the income statement as financial

expenses. Fees paid on the establishment of loan

facilities are recognized as transaction costs of the loan.

Borrowings and trade and other payables are removed

from the balance sheet when the obligation in the

contract is discharged. Current items in the category are

for practical reasons not amortized unless the effect is

material.

Financial assets are derecognized when the contractual

rights to the cash flow from the financial asset expire,

and the Group has transferred substantially all the risks

and rewards of ownership. If it is not apparent that the

entity has transferred or retained all risks and rewards

substantially, the Group evaluates by comparing the

entity’s exposure, before and after the transfer, with the

variability in the amounts and timing of the net cash flows

on the transferred asset. In the securitization facility

agreement to which the group is a party, the receivables

are derecognized (see note 13). Financial liabilities are

derecognized when the obligation is discharged, cancelled

or expires. Any rights and obligations created or retained

in such a transfer are recognized separately as assets or

liabilities.

The Group has applied the simplified approach in IFRS 9

to measure the loss allowance at lifetime ECL for trade

receivables and contract assets. The Group determines

the expected credit losses on these items by using a

provision matrix, estimated based on historical credit loss

experience based on the past due status of the debtors,

adjusted as appropriate to reflect current conditions and

estimates of future economic conditions. Accordingly, the

credit risk profile of these assets is presented based on

their past status in terms of the provision matrix.

Financial assets and financial liabilities are offset with

the net amount reported in the consolidated statement of

financial position only if there is a currently enforceable

legal right to offset the recognized amounts and an intent

to settle on a net basis or to realize the assets and settle

the liabilities simultaneously.

The fair value of financial instruments

The fair value of financial instruments is based on quoted

prices as at the balance sheet date in an active market if

such markets exist. If an active market does not exist, fair

value is established using valuation techniques that are

expected to provide a reliable estimate of the fair value.

Financial instruments measured at fair value are classified

according to the valuation method:

Level 1: Valuation based on quoted prices (unadjusted) in

active markets for identical assets or liabilities.

Level 2: Valuation based on inputs other than quoted

prices included within level 1 observable for the asset or

liability, either directly (that is, as prices) or indirectly (that

is, derived from prices).

Level 3: Valuation based on the asset or liability inputs that

are unobservable market data.

If one or more significant inputs are not based on

observable market data, the instrument is included

in level 3.

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Changes in fair value are presented in profit or loss in the

line-item Financial expenses.

2.3.13 Cash and cash equivalents

Cash and cash equivalents comprise cash at banks.

2.3.14 Cash flow statement

The Group presents the statement of cash flows using the

indirect method. Cash inflows and outflows are shown

separately for investing and financing activities, while

operating activities include cash and non-cash line items.

Interest paid is classified as cash flows from financing

activities and interest received as cash flows from

operating activities.

2.3.15 Earnings per share

Basic earnings per share

Basic earnings per share are calculated by dividing:

• the profit attributable to owners of the company,

excluding any costs of servicing equity other than

ordinary shares.

• by the weighted average number of ordinary shares

outstanding during the financial year, adjusted

for bonus elements in ordinary shares issued and

excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjust the figures used in the

determination of basic earnings per share to consider:

• the after-income tax effect of interest and other

financing costs associated with dilutive potential

ordinary shares, and

• the weighted average number of additional ordinary

shares that would have been outstanding assuming

the conversion of all dilutive potential ordinary shares.

2.3.16 Contributed Equity

Equity is presented as a single line item in the balance

sheet and is disclosed in the statement of changes in

Equity showing the reconciliation of changes for each

component of contributed Equity.

The components presented are the Groups share capital

and premium, other reserves, translation differences and

retained earnings. Other reserves includes transactions

related to shares such as treasury shares, share based

payments and similar transactions. The Group has chosen

to present share capital as only the external owned shares.

2.4 Significant accounting judgements,

estimates and assumptions

Judgements

In the process of applying the Group’s accounting policies,

management has made the following judgements,

which have the most significant effect on the amounts

recognized in the consolidated financial statements:

Determining the lease term of contracts with renewal

options – Group as lessee

The Group determines the lease term as the non-

cancellable term of the lease, together with any periods

covered by an option to extend the lease if it is reasonably

certain to be exercised, or any periods covered by an

option to terminate the lease if it is reasonably certain not

to be exercised.

The Group applies judgement in evaluating whether it

is reasonably sure to exercise the option to extend. It

considers all relevant factors that create an economic

incentive for it to exercise either the renewal or

termination. After the commencement date, the Group

reassesses the lease term if there is a significant event or

change in circumstances that are within its control and

affects its ability to exercise or not to exercise the option.

The Group has not included the renewal period as part of

the lease term for the office lease as the options are not

reasonably certain to be exercised. Refer to note 10 for

information on potential future rental payments relating to

periods following the exercise date of the extension option

that is not included in the lease term.

Estimates and assumptions

The key assumptions concerning the future and other

key sources of estimation uncertainty at the reporting

date that have a significant risk of causing a material

adjustment to the carrying amounts of assets and

liabilities within the next financial year are described

below. The Group based its assumptions and estimates

on parameters available when the consolidated

financial statements were prepared. However,

existing circumstances and assumptions about future

developments may change due to market changes or

circumstances arising that are beyond the control of the

Group. Such changes are reflected in the assumptions

when they occur.

Impairment of assets

The Group has investments in intangible assets such as

customer contracts and internally generated software,

Goodwill, and Right-of-Use Assets (ROU assets). Before

each quarterly report, all assets are assessed for any

indication of impairment. If such movement exists, the

Group estimates the asset’s recoverable amount according

to IAS 36.

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Factors that indicate impairment include significant

underperformance in revenue-generating operation

relative to historical data and future projections,

substantial changes in the use of the asset or any

malfunctions, substantial changes in the market and

economy, in general, affecting the future economic benefit

of the asset and significant fall in market values.

Regardless of any indication of impairment, Goodwill and

internally generated intangible assets not yet in use are

tested for impairment in the fourth quarter of the year

(Q4).

The recoverable amount of an asset is the higher its fair

value, less cost of disposal, and its value in use. Value in

use is the present value of the future cash flows expected

from an asset. This valuation consists of different

estimates that the Group makes, such as estimates of

the future cash flows the entity expects to derive from

the asset, expectations about possible variations in the

amount or timing of those future amounts, time value of

money and other relevant factors. All estimates are based

on reasonable, relevant, and supportable information and

represent the management’s best estimate.

Deferred tax assets from tax losses

Deferred tax asset is recognized for the carryforward of

unused tax losses and unused tax credits to the extent

that it is probable that future taxable profit will be

available against which the unused tax losses and tax

credits can be utilized. The Group has projected future

taxable profits pr jurisdiction for which the tax losses can

be utilized based on approved budgets and forecasts.

Refer to note 7 for further disclosures.

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Note 3 - Revenue and segment information

(NOK 1,000)

The Group has one segment, sale of collaboration services.The market for Pexip’s software and services is global. The

chief decision maker will therefore follow up revenue and profitability on a global basis. This is consistent with the internal

reporting submitted to the chief operating decision maker, defined as the Management Group. The Management Group is

responsible for allocating resources and assessing performance as well as making strategic decisions.

Principles of revenue recognition are stated in accounting principles to consolidated financial statements, section 2.3.4

Revenue from contracts with customers.

Disaggregation of revenue

In the following table, revenue is disaggregated by primary service line, geography and timing of revenue recognition. In

presenting the geographic information, revenue has been based on the geographic location of customers.

Full year 20241)Americas APACEMEA Total Pexip as-a-Service 280 284 229 969 34 968 545 221Self-hosted Software 286 764 238 754 47 824 573 342Total revenue 567 048 468 723 82 792 1 118 563

Full year 20231)Americas APACEMEA Total Pexip as-a-Service 245 915 187 456 25 279 458 651Self-hosted Software 255 567 229 062 50 302 534 931Total revenue 501 482 416 519 75 582 993 582

Timing of revenue recognition2024 2023Products and services transferred at a point in time 460 267 413 130Products and services transferred over time 658 296 580 452Total revenue 1 118 563 993 582

Europe, Middle East and Africa

Asia Pacific (East and South Asia, Southeast Asia and Oceania)

Information about major customers

The Group conducts its sales through channel partners. Of the Group’s total channel partner base for FY 2024, the five

largest represent approximately 25% of total revenue (26% for FY 2023), and the ten largest represent approximately

40% (41% for FY 2023). No channel partner represent more than 10% of the Group’s revenue.

Information about share of recurring revenue from own products

Recurrring revenue from own products is defined as revenue from time-limited contracts where the purchase is

recurring in nature. Revenue from time-limited software subscriptions and related mandatory maintenance contracts

are considered recurring. Revenue from third-party software licences, perpetual software-licences and project-based

professional services, such as a customer-specific proof-of-concept project or installation project, are considered non-

recurring.

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Note 4 - Salary and personnel expense and management remuneration

(NOK 1,000)

Non-current assets

The following geographic information of non-current assets is based on the geographic location of the assets.

2024 2023Norway 175 355 232 221Europe (other than Norway) 140 042 98 706Americas 148 257 118 625APAC 32 111 29 275Total non-current operating assets 495 764 478 826

Non-current assets for this purpose consist of property, plant and equipment, right-of-use assets, other intangible assets

and contract costs.

2024 2023Wages and salaries 369 694 388 776Social security tax 63 469 67 454Commission and bonus employees 147 894 115 271Share-based payment expense (note 24) 46 077 36 431Pension costs (note 23) 43 088 38 875Other personnel cost 10 464 9 901Salary cost capitalised -26 727 -35 273Total 653 959 621 435

Average number of labour-years employed during the year 296 354

Loan to employees

There were no unsecured loans to employees at December 31, 2024 (2023: NOK 50.6 thousand).

Management remuneration

The remuneration to management including bonus agreements and severance pay is disclosed in the management

remuneration report for 2024.

The Management remuneration report for 2024 will be published at the same time as the annual report for 2024 and can

be found on Pexip.com under section Investor relations (reports and presentations).

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Note 5 - Other operating expenses

(NOK 1,000)

The table below outlines key management compensation for 2024 and 2023 by categories. The figures presented in each

category are the total remuneration for the management group.

2024 20231)Base salary 15 622 14 362Pension 510 4742)Short term incentives 7 176 5 2193)Other remuneration 1 123 1 1814) Long term incentives 7 134 3 246Total 31 565 24 482

1) Base salary includes holiday pay, if applicable

2) The STI amounts reflect the bonus paid in the respective year.

3) Other remuneration include any type of cash or benefit in kind provided, such as travel expenses, broadband and phone and insurances.

4) The LTI amounts reflect the cash incentives for share purchase based on the options or RSU agreements.

Remuneration to board of directors in the parent company

The remuneration to board of directors is disclosed in the management remuneration report for 2024.

Share option plan

The Group has share-based payment programs to employees. The share option plan is further presented in note 24.

An overview of management share options is disclosed in the management remuneration report for 2024.

Of the share based payment cost under salary and personnel expenses NOK 26,060 thousand was recognised against

Equity (2023: NOK 30,815 thousand). The rest of the share based payment cost is social security cost for the period.

2024 2023Sales and marketing 27 117 27 655Computers and software 50 023 45 765Fees for external services 35 996 48 718Travel expenses 14 535 15 228Other operating expenses 21 547 18 526Other lease expense 3 570 3 989Total 152 787 159 880

Auditor’s fees

The remuneration breakdown (excl. VAT) paid to Deloitte AS and their associates is as follows:

2024 2023Statutory audit 3 529 4 047Assurance services 148Total 3 677 4 047

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Note 6 - Financial Income and expenses

(NOK 1,000)

2024 2023Interest income 22 472 19 004Other financial income 126 190Financial instruments at fair value through profit and loss 6 066Financial income 28 665 19 194

Interest expense -872 -631Interest expense on lease liabilities (note 10) -2 241 -2 020Other financial expenses -284 -56Financial expenses -3 397 -2 707

Net foreign currency gains and losses 29 352 16 737

Net financial income (expense) 54 620 33 224

Note 7 - Income tax expense

(NOK 1,000)

Specification of income tax expense: 2024 2023Current tax on profits for the year 5 695 4 656 Changes in deferred tax 41 479 10 482 Adjustments for current tax of prior periods -923 1 116 Tax on profit/(loss) 46 251 16 253

Reconciliation from nominal to effective income tax rate: 2024 2023Profit/(loss) before tax 164 156 -63 532Estimated income tax according to nominal tax rate of 22 % 36 114 -13 977Effect from different tax rate in other countries -252 -1 070Effect of changes in tax rules and rates -898 -279The tax effect of the following items:Non-deductible expenses 1 680 9 310Non-taxable income -1 991 -639Share-based payment expenses 3 845 6 217Change in unrecognised deferred tax assets 5 762 14 573Adjustments for prior period tax 55 188Other items 1 934 1 930Income tax expense 46 251 16 253Effective income tax rate 28% -26%

Changes in tax rate

There are no material changes in tax rates in the Group for 2024

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Deferred tax balances: 2024 2023Deferred tax assets:Tax losses 159 632 212 006Tangible and intangible assets 4 093 -6 878Receivables 1 718 1 034Contract liabilities 49 821 34 373Current and non-current liabilities 11 167 4 229Other 992Set-off tax -47 132 -36 106Net deferred tax assets after set-off 180 291 208 657Unrecognised deferred tax assets -40 067 -38 028Net deferred tax assets 140 224 170 629Deferred tax liabilities:Tangible and intangible assets 86 887 63 299Current assetsContract liabiltiesOther differencesSet-off tax -47 132 -36 106Net deferred tax liabilities 39 755 27 193

Pexip reclassifies the Deferred tax asset and liability position according to IAS 12. This reclassification is reflected in the

line item ‘Set-off tax’.

Deferred tax Tax losses Contract Current and non-Other Totalassets Movements liabilitiescurrent liabilities At januar 2023 211 324 26 947 13 457 -10 458 241 270 - to profit or loss -12 985 7 426 -9 229 4 614 -10 173 - not recognized 13 667 13 667 At januar 2024 212 006 34 373 4 229 -5 844 244 764 (Charged)/credited - to profit or loss -58 136 15 448 6 938 12 646 -23 103 - not recognized 5 762 5 762 At december 2024 159 632 49 821 11 167 6 802 227 423

Deferred tax Tangible and Totalliability Movements intangible assets At januar 2023 63 018 63 018 - to profit or loss 281 281 At januar 2024 63 299 63 299 (Charged)/credited - to profit or loss 23 588 23 588 At december 2024 86 887 86 887

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Utilisation of taxable temporary differences are assessed by taxation authority and by taxable entity if the temporary

differences can’t be utilised across different entities within the same taxation authority. As of December 31, 2024 and

2023 a deferred tax asset is recognised for all the individual taxation authorities where the Group conduct business, with

the exception for Pexip Belgium.

The deferred tax asset is included in the balance sheet based on an assessment of the probability that sufficient taxable

profit will be available in the future to allow the deferred tax asset to be utilised (see accounting principle in 2.3.11).

Deferred tax assets on tax losses arising in Norway, the US and UK, in total NOK 119.6 million as at December 31, 2024

(2023: NOK 177.7 million) have been recognised based on the same assessment of the probability for sufficient taxable

profit in the future.

Tax losses relating to the Pexip Belgium for which deferred tax assets have not been recognised was in the amount of

NOK 40.0m in 2024 (2023: 34.3m).

Tax losses carried forward 2024 2023Expire (2035 and forward) 5 177Never expires 689 587 924 762Total tax losses carried forward 689 587 929 939Tax losses for which deferred tax asset is recognised 529 320 784 156Tax losses for which no deferred tax asset is recognised 160 267 145 783Potential tax benefit from unrecognized assets 40 067 36 446

Tax losses incurred in the US after January 1, 2018 do not expire, but are limited to 80% usage in one year. Tax losses

carried forward from the US business with no expiration date amount to NOK 47.4 million at December 31, 2024

(December 31, 2023: NOK 53.8 million). The expiring tax losses have priority over the never-expiring losses and are used

earliest-first. In 2024, all the tax losses with expiration date is used. The main part of the losses carried forward is from

Pexip Holding ASA (NOK 135.9 in 2024 and NOK 149.9 million in 2023) and Pexip AS (NOK 318.5 in 2024 and NOK 553.2

million in 2023).

Pexip is not in the scope for the GloBE rules, as the consolidated annual revene of the ultimate parent entity (Pexip

Holding ASA Group) is below EUR 750 million. The pillar II tax reform is not applicable for the year ending 2024.

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Note 8 - Earnings per share

(NOK 1,000)

Earnings 2024 2023Earnings for the purpose of basic earnings per share beingnet profit attributable to the owners of the company 117 905 -79 786Effect of dilutive potential ordinary sharesEarnings for the purpose of diluted earnings per share 117 905 -79 786

Number of sharesWeighted average number of ordinary shares for the purposeof basic earnings per share 101 570 239 101 343 895Effect of dilutive potential ordinary shares: Share options 3 579 250 922 946Weighted average number of ordinary shares for the purposeof diluted earnings per share105 149 489 102 266 841

Earnings per shareBasic earnings per share 1.16 -0.79 Diluted earnings per share 1.12 -0.79

2024 2023Overview of outstanding share optionsShare-based payments awards (refer to note 24) 7 148 906 8 730 775Total options and RSUs outstanding 7 148 906 8 730 775

Dilutive potential ordinary shares of 3,579,250 for 2024 (2023: 922,946) differs from total outstanding options at

December 31, 2024 (and December 31, 2023). The main reasons for this is that potential ordinary shares used to calulated

diluted earnings per share are a weighted average for the year, the use of the treasury method when calculating dilutive

potential ordinary shares and that the options over own equity instruments are anti-dilutive.

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Note 9 - Property, plant & equipment

(NOK 1,000)

Plant and Fittings and TotalmachineryfixturesAcquisition cost January 1, 2023 21 300 48 547 69 945Additions 3 564 2 464 6 027Disposals cost -1 995 -2 923 -4 918Reclassification between categories 15 875 -15 875Exchange differences 791 1 885 2 579Acquisition cost December 31, 2023 39 534 34 098 73 632Additions 3 194 12 928 16 122Disposals cost -1 142 -3 218 -4 360Exchange differences 501 234 735Acquisition cost December 31, 2024 42 087 44 042 86 129Accumulated depreciation and impairment losses January 1, 2023 15 582 25 146 40 728Depreciation for the period 8 022 14 393 22 415Disposals -1 818 -265 -2 083Reclassification between categories 10 982 -10 982Exchange differences 614 378 992Accumulated depreciation and impairment losses December 31, 2023 33 381 28 671 62 052Depreciation for the period 4 330 2 538 6 868Disposals -1 092 -1 986 -3 078Exchange differences 438 -275 162Accumulated depreciation and impairment losses December 31, 2024 37 057 28 947 66 004Carrying value at December 31, 2023 6 153 5 427 11 580Carrying value at December 31, 2024 5 030 15 094 20 124

Estimated useful life and depreciation plan is as follows:

Useful life 3 - 5 years 3 - 5 years

Depreciation plan Linear Linear

Property, plant and equipment was pledged as security for liabilities in 2022, this obligation was resolved by the end of

2023.

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Note 10 - Leases

(NOK 1,000)

Set out below are the carrying amount of right-of-use assets recognised and the movements during the period:

Land and Plant and TotalBuildingsmachineryAs at January 1, 2023 71 413 5 741 77 154Additions (new leases) 4 859 135 4 994Adjustments -19 518 -19 518Depreciation expense -21 240 -905 -22 145Exchange differences 2 051 195 2 245As at December 31, 2023 37 564 5 166 42 730Additions (new leases) 27 639 27 639Modification of contract -391 -92 -483Derecognition -3 858 -3 858Depreciation expense -13 976 -1 123 -15 099Exchange differences 790 74 864As at December 31, 2024 47 769 4 024 51 793

Lower of remaining lease term or useful life 2-10 years 3-5 years

Depreciation method Linear Linear

Set out below are the carrying amounts of lease liabilities and the movements during the period:

2024 2023As at January 1 47 495 83 999Additions (new leases) 27 639 4 994Modification of contract -483 -20 238Derecognition -934Principal element of lease payments -13 405 -21 737Exchange differences 1 321 477As at December 31 61 633 47 495

Maturity analysis of lease liabilities 2024 2023Less than 6 months 10 525 6 9536-12 months 7 942 9 4531-2 years 14 301 12 8362-5 years 33 872 20 646Over 5 years 3 951 963Total face value 70 590 50 853

Carrying amount 61 633 47 495Current 18 123 16 069Non-current 43 510 31 427

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The following are the amounts recognised in profit or loss and other comprehensive income:

2024 2023Depreciation expense for the right-of-use asset 18 102 22 145Interest expense on lease liabilities 2 241 2 015Exchange difference (included in OCI) 324 288Exchange difference (included in financial income) -67 69Expense related to short-term leases (included in other operating expenses) 3 570 3 989Total expenses recognised in profit or loss 24 170 28 507

The Group had total cash outflows for leases of NOK 19.2 million in 2024 (NOK 29.9 million in 2023).

An incremental borrowing rate (IBR) of Nowa + 3% has been applied on all new leases during the 2024 accounting year.

We have selected Nowa as the risk-free rate as a starting point to determine the IBR. We have also chosen to apply a

constant financing spread adjustment of 3% to a portfolio of leases with reasonably similar characteristics (such as leases

with a similar class of underlying assets). This approach will change if we observe the material differences in financing

costs in the specific region we operate.

Refer to note 2.3.9 for a summary of significant accounting policies and note 2.4 for significant accounting judgements,

estimates and assumptions for the Group leases.

Extension and purchase options

The Group’s lease of lands and buildings have lease terms that vary from initially 12 months to 10 years, and some

agreements involve a right of renewal which may be exercised during the last period of the lease term. The Group assesses

whether it is reasonably certain to exercise the renewal right at the commencement date. Most of the leases are one year

leases with renewal options. The lease contract with longer durations does not have any renewal options. The Group’s

potential future lease payments not included in the lease liabilities related to extension options is NOK 3.5 million (gross)

on December 31, 2024 (NOK 6.2 million on December 31, 2023).

The Group leases plant and machinery with 3 to 5 years lease terms. These contracts include a right to purchase the asset

at the end of the contract term. The Group assesses whether it is reasonably certain to exercise the purchase option at the

commencement date. The Group has estimated that all the purchase options will be exercised. No potential future lease

payments are included in the lease liabilities related to purchasing options on December 31 in 2024 and 2023.

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Note 11 - Goodwill

(NOK 1,000)

2024 2023Carrying amount of Goodwill January 1 598 998 662 645Impairment of Goodwill -63 647Carrying amount of Goodwill December 31 598 998 598 998

The carrying amount of goodwill in the Group amounts to NOK 599 million as of December 31, 2024. Goodwill is derived

from the acquisition of Videxio AS (599 million), which was completed in 2018. Goodwill is tested on an aggregate (Group)

level since the synergies stemming from the business combination will materialize on the group level that means that there

is only one single reportable CGU acording to IFRS 8 definitions of reportable CGUs.

Goodwill is tested for impairment annually or more frequently if there are indications that goodwill might be impaired,

and has been assessed on a quarterly basis through 2024. Testing was most recently conducted in Q4 2024 based on the

updated business plan for the company at this time and the balance sheet per 30 September 2024. The recoverable amount

is set to the estimated value in use. The value in use is the net present value of the estimated cash flow before tax, using a

discount rate reflecting the timing of the cash flows and the expected risk.

Assumptions

Future cash flows

Revenue development and operating profits are estimated based on past performance and management expectations for

2025 to 2029. The expectations for the overall economic conditions and market outlook are in line with industry analysts,

expecting continued strong growth within the collaboration market. The forward-looking revenue assumptions are overall

in line with 2024, as are the assumption on cost development. These are in line with the stated strategy and current

financial targets of the company. Capital investments and depreciation are estimated to align with historic values relative to

revenues.

Pre-tax discount rate

Cash flows were discounted to a weighted average cost of capital (WACC) corresponding to 12.37% (before tax) (2023:

11.42%). The asset beta is based on the average of peer companies in the segment with a small company premium. The risk-

free interest rate applied is the the daily observable rate for the 10-year Norwegian government bonds, dated 9 December,

i.e. the date of board approval of the 2025-2029 business plan. The long-term optimal weight of equity of 95% is used in

WACC calculation.

Growth rate

The expected growth in revenue is based on historical performance as well as the expected future development in line with

the Company’s approved business plan. This includes management’s best estimate of cash flows for the next 5 years. Cash

flows beyond the five-year forecast period have been extrapolated using a steady 2.934% per annum growth rate, in line

with previous years.

Sensitivity analysis

Review for the CGU indicated that the recoverable amount exceeds carrying value by NOK 2,558 million at the balance

sheet date. The Group has prepared a sensitivity analysis of the impairment test for key assumptions: terminal growth rate,

discount rate and EBITDA change.

The following changes in key assumptions, in isolation, would result in recoverable amount being close to equal to the

carrying amount of goodwill. Change in one of the key assumptions may impact the development of others, however, due to

the significant uncertainties and judgement in determining such dependency, this has not been done.

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Note 12 - Intangible assets

(NOK 1,000)

The sensitivities, which result in the recoverable amount being equal to the carrying value, are summarised below:

- an absolute increase in the WACC of 29.77%, from 12.37% to 42.14%, or

- an absolute reduction of 38.46 percentage ponts in the business plan growth rate (not including the terminal growth rate),

- a reduction of 75% in the forecasted EBITDA.

Changes beyond those described may thus lead to a impairment situation.

An alternative way to assess the sensitivity of key assumptions is to assess the potential impairment need from a negative

development in the key assumptions. For 2024 the company’s standard sensitivity ranges (+- 4% for growth and WACC,

+- 40% for EBITDA) does not lead to the carrying amount of goodwill exceeding the recoverable amounts.

Software Customer Patents Re-aquired Total contracts rights Acquisition cost January 1, 2023 325 212 63 214 238 5 354 394 018 of which internally generated 159 830 159 830Additions (internally generated) 39 406 39 406Additions 1 095 1 095Translation differences 3 741 3 741Disposals -20 166 -20 166Government grants -4 750 -4 750Acquisition cost December 31, 2023 344 538 63 214 238 5 354 413 344 of which internally generated 194 487 194 487Additions (internally generated) 30 197 30 197Reclassification between categories 1 134 -1 135 -1Government grants -4 497 -4 497Acquisition cost December 31, 2024 371 371 62 079 238 5 354 439 043 of which internally generated 224 684 224 684Accumulated amortisation and impairment 166 842 42 600 238 5 354 215 034losses January 1, 2023 of which internally generated 88 327 88 327Amortisation of internally generated assets 31 235 31 235Amortisation of other assets 43 855 15 554 59 409Translation differences 1 938 1 938Disposal -19 790 -19 790Accumulated amortisation and impairment 224 081 58 154 238 5 354 287 827losses December 31, 2023 of which internally generated 119 562 119 562Amortisation of internally generated assets 31 747 31 747Amortisation of other assets 22 177 2 348 24 524Translation differences -806 -806Accumulated amortisation andimpairment losses December 31, 2024 277 198 60 502 238 5 354 343 292

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Annual Report 2024Financials

Software Customer Patents Re-aquired Total contracts rights of which internally generated 151 309 151 309Carrying value as at January 1, 2023 157 993 20 614 178 607 of which internally generated 71 503 71 503Carrying value as at December 31, 2023 120 457 5 060 125 516 of which internally generated 74 925 74 925Carrying value as at December 31, 2024 94 171 1 577 95 748 of which internally generated 73 375 73 375

Estimated useful life and amortisation plan is as follows:

Useful life 5 years 5 years 5 years 1 year

Amortisation plan straight-line straight-line straight-

line

straight-line

The development expenditures that do not meet the criteria for capitalisation are recognised as salary and personnel

expenses and other operating expenses in profit and loss. The aggregate employee cost within software and product

development, operations and support for 2024 which is not capitalized is NOK 155,6 million (2023: NOK 143,5 million).

The Group has received government grants related to development of software of NOK 4,5 million in 2024 and NOK 4,75

million in 2023. The grants have been subtracted from the carrying amount of internally generated software.

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Annual Report 2024Financials

Note 13 - Trade and other receivables

(NOK 1,000)

Note 14 - Other current assets

(NOK 1,000)

2024 2023Other prepayments17 931 18 996Other current assets 1 847 4 721Total 19 778 23 716

2024 2023Trade receivables 333 716 181 829Provisions for bad debt -7 210 -4 593Public taxes and funds 4 586 6 383Other current receivables 1 740 96Total current trade and other receivables 332 832 183 716Deposits 4 983 2 252Total non-current trade and other receivables 4 983 2 252

Aging of trade receivables 2024 2023Current 240 998 138 1641-30 days past due 39 900 27 56531-60 days past due 27 425 4 96061-90 days past due 3 677 1 383More than 90 days past due 21 716 9 758Less provision for bad debt -7 210 -4 593Total 326 506 177 236

Movements in the provision for impairment of trade receivables 2024 2023Opening balance provision for bad debt as at January 1 4 593 5 413Change in provision for the year 2 769 1 412Receivables written off during the year -140 -2 246Translation differences -12 14Closing balance provision for bad debt as at December 31 7 210 4 593

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Note 15 - Cash and cash equivalents

(NOK 1,000)

Note 16 - Share capital, shareholder information and dividend

(NOK 1,000)

The Parent Company’s registered share capital as at December 31, 2024 was NOK 1,566 thousand, divided into 104,429.671

ordinary shares with a par value of NOK 0.015. All issued shares have equal voting rights. The parent company holds

treasury shares of 2,588,729 making the presented share capital NOK 1,528 thousand.

The Parent Company’s registered share capital as at December 31, 2023 was NOK 1,566 thousand divided into 104,429.671

ordinary shares with a par value of NOK 0.015. All issued shares have equal voting rights. The parent company held treasury

shares of 2,842,867 making the presented share capital NOK 1,524 thousand.

Development in the number of issued and outstanding shares

Number of shares Share capital (1,000)(1,000)Outstanding at January 1, 2024 104 430 1 566Outstanding at December 31, 2024 104 430 1 566

Treasury sharesNumber of shares (1,000)Outstanding at January 1, 2024 2 842 867Employee share scheme issue -254 138Outstanding at December 31, 2024 2 588 729

2024 2023Bank deposits 422 100 522 692Total cash and cash equivalents 422 100 522 692

Restricted cash

These deposits are subject to regulatory restrictions and are therefore not available for general use.

2024 2023Taxes withheld 7 653 6 515Total restricted cash 7 653 6 515

As of December 31, 2024, NOK 4 815 is held as a bank guarantee at DNB bank

for the lease contract with Mustad Eiendom AS regarding rental of offices in Lysaker.

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Ownership structure

The 20 largest shareholders as of December 31, 2024:

Shares Ownership

HOLMEN SPESIALFOND 9 945 040 9.52%

T D VEEN AS 6 146 946 5.89%

VERDIPAPIRFONDET DNB SMB 3 503 557 3.35%

Skandinaviska Enskilda Banken AB 3 417 607 3.27%

BJØBERG EIENDOM AS 3 000 200 2.87%

PEXIP HOLDING ASA 2 588 729 2.48%

VEEN EIENDOM AS 2 133 496 2.04%

STAVANGER VENTURE AS 2 102 000 2.01%

A HOLDINGS AS 2 010 000 1.92%

XFILE AS 1 850 000 1.77%

SYNESI AS 1 750 000 1.68%

SKANDINAVISKA ENSKILDA BANKEN AB 1 323 978 1.27%

Avanza Bank AB 1 310 696 1.26%

The Bank of New York Mellon SA/NV 1 259 570 1.21%

Tamorer ltd ATF Wylie Family Trust 1 189 000 1.14%

GLO CAPITAL AS 1 178 312 1.13%

LIA INVESTMENTS AS 1 161 252 1.11%

PEBRIGA AS 1 152 730 1.10%

SIRIUS AS 1 150 000 1.10%

CARABACEL AS 1 140 000 1.09%

Total top 20 shareholders 49 313 113 47.22%

Others 55 116 558 52.78%

Total 104 429 671 100%

Number of shares owned or controlled directly or indirectly by the Management Group and Board of Directors at

December 31, 2024:

Persons discharging managerial responsibilities Shares Ownership

Kjell Skappel (Chair of the Board) 10 382 442 9.94%

Irene Kristiansen(Board Member) 150 000 0.14%

Geir Olsen (Board Member) 1 178 312 1.13%

Phillip Lester Austern (Board Member) 100 000 0.10%

Silvija Seres (Board Member) 0 0.00%

Trond Johannessen (CEO) 160 000 0.15%

Ian Mortimer (CTO) 54 667 0.05%

Patricia Auseth (CMO) 32 134 0.03%

Åsmund Fodstad (CRO) 557 275 0.53%

Ingrid Woodhouse (CPO) 68 180 0.07%

Øystein Hem (CFO) 161 468 0.15%

Helge Hansen (COO) 12 700 0.01%

Total 12 857 178 12.31%

Dividend paid and proposed

Proposal for approval at AGM for financial year 2024 is that NOK 2.5 per share is paid as a dividend.

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Note 18 - Contract costs, contract assets and contract liabilities

(NOK 1,000)

Note 17 - Borrowings

(NOK 1,000)

Interest rate Year of maturity 2024 2023Other borrowings 2.0% 2026 1 984 2 190Total long-term debt 1 984 2 190Other borrowings 132Total short-term debt 132

The leasing liabilities are presented separately in note 10 - Leases

The fair value of external borrowings does not materially differ from the carrying amount since interest payable is close to

current market rates.

Pledged as security

The Group did not have any assets pledged as collateral as of year ending 2023 and 2024.

Contract assets 2024 2023

Balance at January 1 39 211 37 233

Additions 6 737 39 210

Reclassifications to accounts recievables -39 211 -37 233

Balance at December 31 6 737 39 211

Contract assets represent recognized revenue that has not yet been invoiced.

Contract liabilities 2024 2023Balance at January 1 255 258 231 004New contract liabilities 336 291 220 344Revenue recognised from liability opening balance -236 657 -196 091Balance at December 31 354 892 255 258

For impairment of contract assets the simplified approach is used and the expected loss provision is measured at the

estimate of the lifetime expected credit losses. The provision matrix is disclosed in Note 21 - Financial risk. The accrual

for losses for 2024 on contract assets is under NOK 0,1 million for 2024.

Contract costs 2024 2023Balance at January 1 299 000 285 778Additions 100 802 86 860Depreciated during the year -95 805 -83 944Translation differences 21 089 10 307Balance at December 31 325 086 299 000

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Note 19 - Categories of financial assets and financial liabilities

(NOK 1,000)

Contract assets and liabilities

Of the contract liabilities as of December 31, 2024, NOK million 237 has been recognised as revenue in 2024 (2023:

NOK million 196) corresponding to 93% (2023: 85%) of the contract liability the preceding year end. The increase of the

contract liability in 2023 and 2024 is mainly due to increase in sales.

Of the contract assets as of December 31, 2024, NOK million 39 is reclassified to accounts receivables in 2024 (2023:

NOK million 37). The decrease in contract asset to NOK million 7 in 2024 (2023: NOK million 39) is mainly due to timing

of the invoices, going directly to AR in 2024.

The definition of contract assets and contract liabilities, together with a description of the relevant accounting principles

can be found under the headline Contract balances in the description of the group’s accounting principles (section 2.3.4).

Contract costs

The definition of contract costs, together with a description of the relevant accounting principles can be found under the

headline Costs of obtaining or fulfilling contracts with customers in the description of the group’s accounting principles

(section 2.3.4).

In 2024, amortization of contract costs amounting to NOK million 93 was recognised as part of salary and personnel

expenses and NOK million 1 as cost of sale. For 2023 the amounts were NOK million 82 and NOK million 2 respectively.

Categories of financial assets and financial liabilities

Financial assets 2024 2023Financial assets at amortised cost:Cash & cash equivalents (note 15) 422 100 522 692 Trade and other receivables (note 13) 332 832 183 716Total 754 932 706 407Financial assets at fair value through profit and loss:Liquidity fund (note 21) 206 066 Total 206 066 0Total Financial assets 960 998 706 407

Financial liabilities 2024 2023Liabilities at amortised cost:Borrowings (note 17) 1 984 2 323Trade and other payables 156 534 130 374Lease liabilities (note 10) 61 633 47 495Total 220 151 180 192

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The Group’s exposure to various risks associated with financial instruments is discussed in note 21.

The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial

assets presented above.

There are no or insignificant differences between the carrying amount and the amount that the company is contractually

obligated to pay to the creditors on maturity.

Trade and other receivables and trade and other payables are considered to be a part of the working capital.

Cash and cash equivalents includes cash at bank*. For capital management purposes, both cash at bank and the liquidity

fund is included in the definition of Free cash flow in the period. The liquidity fund provides the Group with interest income,

see note 6.

*In Q2 and Q3 of 2024 this investment was presented as a cash equivalent in the balance sheet and hence also in the cash

flow statement. This has in Q4 been reclassified to Financial Assets and adjusted in the ingoing cash position in the cash

flow statement for the quarter.

Fair value hierarchy

This overview explains the judgements made in determining the fair values of financial instruments in the

financial statements.

2024 2023Level amount Level AmountLiquidity fund Level 1 206 066 0Total Financial instruments at fair value 206 066

There was no transferred between levels in 2024 or 2023.

Level 1 fair value is based on quoted market prices at the end of the reported period.

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Note 20 - Reconciliation for liabilities arising from financing activities

(NOK 1,000)

The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-

cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be,

classified in the Group’s consolidated cash flow statement as cash flows from financing activities.

Liabilities from financing activitiesBorrowings Lease liabilities Total (Note 17)(Note 10)Net debt as of January 1, 2023 4 093 83 999 88 092 Financing cash flows -4 000 -4 000 Additions (new leases) 4 994 4 994 Modification of contract -20 238 -20 238 Derecognition Principal element of lease payments -21 737 -21 737 Exchange differences 543 477 1 021 Other changes - Interest expense -484 -2 020 -2 505 - Interest payments 484 2 020 2 505 Transfer between accounts* 1 686 1 686 Net debt as of December 31, 2023 2 323 47 495 49 818 Financing cash flows -169 -169 Additions (new leases) 27 639 27 639 Modification of contract -483 -483 Derecognition -934 -934 Principal element of lease payments -13 405 -13 405 Exchange differences -253 1 321 1 068 Other changes - Interest expense -919 -2 241 -3 160 - Interest payments 919 2 241 3 160 Transfer between accounts* 83 83 Net debt as of December 31, 2024 1 984 61 633 63 617

The group does not have any financial investments with cash flows included in fianancial activities in the cash flow.

* This amount was in 2022 presented as other provisions and was reclassified to borrowings in 2023

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Note 21 - Financial risk

(NOK 1,000)

The most significant financial risks which affect the group are credit risk, liquidity risk and market risk related to foreign

exchange rate risk, described further below. Management performs continuous evaluations of these risks and related processes

established to manage them within the group.

Credit risk

The group is exposed to credit risk from its operating activities, primarily trade receivables and contract assets. The group

does not have a specific procedure for assessing credit risks for its customers before transactions are entered, and mainly does

business with large channel partner organizations. The group does not have significant credit risk associated with a single

counterparty.

Most customer contracts are with channel partners, of which Pexip has multiple engagements. Such contracts are mainly

invoiced yearly or monthly in advance with standard payment terms of 30 days. The group has a collection policy to ensure

overdue invoices are taken action.

The group applies the IFRS 9 simplified approach to measuring expected credit losses, using a lifetime expected loss allowance

for all trade receivables. Trade receivables have been grouped based on shared credit risk characteristics and the days past

to measure the expected credit losses. The historical loss rate has been adjusted to reflect current and forward-looking

information on macroeconomic factors affecting the ability of the customers to settle the receivables. The amount of expected

credit loss is updated at each reporting date to reflect changes in credit risk since the initial recognition of the respective

financial instrument.

The following table provided information about the exposure to credit risk and expected credit losses for trade receivables and

contract assets as of December 31 in 2024 and 2023:

For the year ended December 31, 20241-30 days 31-60 days 61-90 days More than 90 Trade receivables and contract assets Current past duepast duepast duedays past dueLoss rate 1.05% 1.80% 2.25% 3.00% 8.74%For the year ended December 31, 2023

1-30 days 31-60 days 61-90 days More than 90 Trade receivables and contract assets Current past duepast duepast duedays past dueLoss rate 1.35% 1.80% 2.25% 3.00% 8.74%The Group has historically had limited losses on receivables. However, the Group has considered the uncertainty in the

market and the time value of money from later payments.

In addition to using the simplified approach, the Group has made an individual assessment of trade receivables above a

particular value and adjusted the provision with specific allowances for doubtful accounts. The Group writes off a trade

receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect

of recovery, e.g., when the debtor has been placed under liquidation or has entered bankruptcy proceedings, or when the

trade receivables are over two years past due, whichever occurs earlier. None of the trade receivables that have been written

off is subject to enforcement activities.

Cash and cash equivalents: The counterparts for the group’s cash deposits are large banks considered to be solid. The group

assesses no material credit risks associated with these deposits.

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Financial investments in Liquidity Money market fund

In 2024, Pexip Holding ASA invested 200 million NOK in a liquidity fund through a reputable Norwegian bank. This is an

interest bearing investment in short term bonds (bonds and cash), mainly from Municipalities and Banking corporations in

Norway. This fund is categorized with the lowest risk of the interest bearing funds, as the goal is to give an slightly higher

interest than high interest cash deposit on the company’s cash holdings.

The maximum exposure at the end of the reporting period is the carrying amount of these investments, 2024: 206 million

NOK, (2023: 0 MNOK).

Liquidity risk

The group monitors liquidity centrally across the group. It is the group’s strategy to have sufficient cash and cash

equivalents to at any time fund operations and investments according to the company’s strategic plans. The group monitors

its liquidity risk through a short-term and a long-term liquidity forecast to manage the target of a minimum position of cash

imposed by the Board of Directors.

The group’s financial liabilities are mainly traded payables. In addition, the group has a smaller loan in Pexip Belgium and

multi-year leases on offices and IT equipment.

Maturities of financial liabilities

The tables below analyse the Group’s financial liabilities into relevant maturity groupings based on their contractual

maturities. The amounts disclosed in the table are the contractual undiscounted cash flows. The maturity profile of the

Group’s leasing liabilities can be found in note 10.

For the year ended December 31, 2024

Current Non-current1-6 months 6-12 months 1-2 years 2-5 years Later than 5 (NOK 1,000)yearsBorrowings 1 984Trade and other payables 156 534Total liabilities 156 534 1 984

For the year ended December 31, 2023

Current Non-current1-6 months 6-12 months 1-2 years 2-5 years Later than 5 (NOK 1,000)yearsBorrowings 132 2 190Trade and other payables 130 119Total liabilities 130 251 2 190

Market risk

Foreign exchange rates

The group operates globally and is exposed to foreign exchange risk regarding trade receivables, payables, and cash and

cash equivalent holdings. Foreign exchange risk arises from future commercial transactions and recognised assets and

liabilities denominated in a currency that is not the functional currency of the group and the value of cash holdings in

other currencies than the functional currency, which is NOK.

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The carrying NOK amounts of the Group’s financial assets and liabilities at the reporting date are as follows

(in 1,000 NOK):

Financial assets 2024 % of total 2023 % of totalNOK 420 383 43.7 % 269 928 38.2 %USD 329 057 34.2 % 358 313 50.7 %GBP 57 822 6.0 % 45 654 6.5 %Other currencies 153 736 16.0 % 32 512 4.6 %Total 960 998 100% 706 407 100%

Financial liabilities 2024 % of total 2023 % of totalNOK 112 813 51.2 % 83 596 46.5 %USD 32 536 14.8 % 18 263 10.1 %GBP 32 479 14.8 % 16 954 9.4 %Other currencies 42 323 19.2 % 61 379 34.0 %Total 220 151 100% 180 192 100%

Sensitivity analysis

Based on the net exposure of the Group, the hypothetical impact of exchange rate fluctuations on the profit before tax for

the year is as follows if all other variables are held constant:

2024 2024 2023 2023Foreign Change in Effect on profit before tax Effect on Equity (in Effect on profit before Effect on Equity currencyrate(in 1,000 NOK)1,000 NOK)tax (in 1,000 NOK)(in 1,000 NOK)USD +/- 7% 20 756 16 190 23 803 18 567 GBP +/- 7% 1 774 1 384 2 009 1 567

Note 22 - Capital management

(NOK 1,000)

The Group’s objectives for capital management are to ensure that it maintains sufficient free liquidity with regards to cash

and cash equivalents to support its business and obligations and have enough flexibility to invest in attractive investment

opportunities. The group manages its capital structure, considering changes in economic and actual conditions and the

development of its underlying business.

Pexip monitors both total cash flow position at period and, and the free cash flow in the period.

There are no externally imposed capital requirements.

Free cash flow

The Group monitors the free cash flow on a monthly basis. This consists of operating cash flow, investing cash flow and

principal lease payments. As Pexip monitors the investment in liquidity funds as part of the cash positions, this has been

adjusted out in the definition of free cash flow.

2024 2023Free cash flow 196 480 104 655

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Cash position

The Group has a international cash pool to improve the capital management and optimize liquidity management across

entities.

For capital management purposes, the Group monitors the total cash position and net debt position.

2024 2023Cash position (Note 15) 422 100 522 692 Highly liquid investments 206 066 Total liquid assets 628 166 522 692 Total lease liabilities 61 633 47 495 Total other borrowings 1 984 2 323 Net debt -564 549 -472 874

The highly liquid investments consists of the financial investment in Liquidity fund, see note 19.

Dividends

The Group have established a dividend policy where it aims to distribute 50-100% of the free cash flow generated in the

previous calendar year as a dividend. In addition, the Board of Directors has recommended a extraordinary dividend of NOK

0.5 per share recognizing that the Group has excess liquidity for both 2032 and 2024. The total dividend for 2024 which

is proposed for the Annual General Meeting is NOK 2.5 per share excluding shares held by Pexip Holding ASA,and will be

distributed in Q2 2025 pending shareholder approval.

Final dividends distributed 2024 2023Dividend pr share 1.1 0Total dividend distributed to owners (million) 112 0Dividends not distrubuted 2024 2023Dividend pr share 2.5 1.1Total dividend distributed to owners (million) 260 112

All dividends are paid in cash and presented under line item ‘Dividends paid to companys shareholder’ under financing

activities.

Dividends not distributed is the recommended amount from the directors and will be proposed dividend expected to be

approved by the general assembly. The amount is estimated based on an estimated outstanding number of external shares

of 103,919.658.

Note 23 - Pensions and other long-term employee benefits

(NOK 1,000)

The employees of the group are covered by different pension schemes that vary from country to country and between the

different companies in accordance with local law. All the plans are assessed to be defined contribution plans. The period’s

contributions are recognised in the income statement as salary and personnel costs.

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Annual Report 2024Financials

The Norwegian company in the group is required to have an occupational pension scheme in accordance with the

Norwegian law on required occupational pension (“lov om obligatorisk tjenestepensjon”). The company’s pension

arrangements fulfil the requirements of the law.

The pension plans in the group require that the company pays premiums to public or private administrative pension plans

on a mandatory, contractual or voluntary basis. There are no further obligations once the annual premiums are paid.

The premiums are accounted for as salary and personnel expenses as soon as they are incurred. Prepaid premiums are

accounted for as an asset to the extent that future benefits can be determined as plausible.

The group also provides standard life insurance, health insurance and travel insurance to its employees, the terms of which

vary across the countries the group operates in.

Long-term employee benefits comprise loans to employees (refer to Note 4) and share-based payments (refer to Note 24).

2024 2023Pension cost 43 088 38 875

Note 24 - Share-based payments

Pexip has two share-based compensation programs offered to employees: stock options and restricted stock units (RSUs).

There were no new Options granted in 2024. Legacy stock option programs (granted prior to 2022) vest over a period of

four years and fully vest, at earliest, in 2023 and at latest during 2025. Options expire 5 years after grant date – at earliest

in 2024 and latest in 2026. Option granted after 2022 vests over 3 years, and Expire 4 years after the Grant Date. Exercise

windows for stock options are currently offered once annually and are typically conditional upon active employment at the

time of exercise.

Pexip has a past practice of settling all share based payment transactions is equity instruments, and has historically not

settled any transactions in cash as of 31.12.2024. Pexip accounts for these transactions as Equity in 2024.

For RSUs granted in 2024, Monte-Carlo Simulation was used to correcly evaluate the Fair Value of the awards, given the

contractual clauses.

In 2024, Employees were given an opportunity to convert their Options into RSUs. ~98% of the employees pursued this

option and had their Employee Options converted into RSUs (1 302 825 Options converted into 521 130 RSUs). Senior

Leadership Team was not eligible for this offer.

Options 2024 2024 2023 2023Weighted average Number Weighted average Numberexercise priceexercise priceOutstanding at January 1 23.63 6 660 450 26.14 5 252 950 Granted during the year 19.65 2 285 000Converted during the year 41.26 -1 302 825 -10 000Forfeited during the year 41.77 -245 000 28.04 -860 000Exercised during the year 22.14 -27 500 14.50 -7 500Expired during the year 32.00 -35 000Outstanding at December 31 19.20 5 050 125 23.63 6 660 450

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RSUs 2024 2024 2023 2023Number NumberOutstanding at January 1 2 070 325 1 234 532Granted during the year 68 000 1 310 000Converted 521 130 4 000Forfeited during the year -334 036 -287 195Adjusted 4 500Exercised during the year -226 638 -193 912Expired during the year -1 600Outstanding at December 31 2 098 781 2 070 325

The exercise price of options outstanding at December 31, 2024 ranged beetween NOK 17.28 and NOK 85.00 (2023:

NOK 14.5 and NOK 100) and their weighted average contractual life was 3.45 years (2023: 2,85 years). Weighted average

contractual life for RSUs outstanding at December 31, 2024 was 3.05 years (2023: 1.97 years).

Of the total number of options outstanding at December 31, 2024 3 613 976 (2023: 1 333 225) had vested and were

excercisable (Weighted average exercise price of NOK 18.96). No RSUs were vested at December 31, 2024. All exercised

options was settled in equity.

The weighted average fair value of each option granted during the year is not applicable, since no Options were granted.

The weighted average fair value of each RSU granted during the year was NOK 30.25 (2023: NOK 13.02).

The total expense recognised for the period arising from equity-settled share-based payment transactions was NOK 46.1

million (2023: NOK 36.4 million).

The following information is relevant in the determination of the fair value of instruments granted during the year.

Options 2024 2023Option pricing model used Black-Scholes/Monte CarloWeighted average share price at grant date (in NOK) N/A 20Excercise price (in NOK) N/A 20Weighted average expected life (in days) N/A 1 230Expected volatility N/A 38.19%Risk-free interest rate N/A 3.91%

The expected volatility is based on the volatility for a selection of comparable listed peer companies.

As there are no expected dividend payments, the dividend parameter is not included in the calculations.

RSUs 2024 2023Option pricing model used Monte-Carlo SimulationWeighted average share price at grant date (in NOK) 32 13Excercise price (in NOK)Weighted average expected life (in days) 1077 1095Weighted Average Expected volatility 58.83%Weighted Average Risk-free interest rate 3.64%

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Annual Report 2024Financials

Note 25 - Government grants

(NOK 1,000)

The Group is eligible for government grants of NOK 4,5 million in 2024 (2023: NOK 5,9 million). The total amount of NOK

4.5 million has been deducted from the carrying amount of other intangible assets. (software).

The 2024 government grants relate to a SkatteFUNN project in Pexip AS. In the project named “Ultrasecure

videoconference” Pexip will develop a new video conferencing service for companies and organizations with particularly

high security requirements.

All conditions and contingencies attached to the grants have been fulfilled.

Note 26 - List of subsidiaries

The consolidated financial statements for 2024 include the following subsidiaries:

Company Registered office Voting share Ownership sharePexip AS Oslo, Norway 100% 100%Pexip Ltd. Berkshire, England 100% 100%Pexip Inc. Virginia, USA 100% 100%Pexip Australia Pty Ltd Sydney, Australia 100% 100%Pexip Singapore Pte Ltd Singapore, Singapore 100% 100%Pexip Japan GK Tokyo, Japan 100% 100%Videxio Asia Pacific Ltd. Kuala Lumpur, Malaysia 100% 100%Pexip France SAS Neuilly-sur- Seine, France 100% 100%Pexip Germany GmbH Düsseldorf, Germany 100% 100%Pexip Netherlands B.V. Utrecht, Netherlands 100% 100%Pexip Belgium NV Ghent, Belgium 100% 100%Pexip Italy S.R.L. Milan, Italy 100% 100%Pexip Spain SL Madrid, Spain 100% 100%

The consolidated financial statements for 2023 include the following subsidiaries:

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Annual Report 2024Financials

Note 27 - Transactions with related parties

The Group’s related parties include Parent Company and subsidiaries (see note 26 for the list of companies in the Group),

as well as members of the Board, Management Group and their related parties. Related parties also include companies in

which the individuals mentioned above have significant influence.

The Group is not part in any agreements, deals, or other transactions in which the Parent company’s Board of Directors or

Management Group had a financial interest, except for transactions following from the employment relationship.

Remuneration to key personnel is disclosed in the remuneration report.

In note 4 salary and personnel expense and management remuneration, key management compensation by categories is

disclosed.

Transactions and balances between the parent company and its subsidiaries, and between the subsidiaries, have been

eliminated on consolidation, and are not disclosed in this note. The Group does not have other transactions with related

parties, except for remuneration for their role in the Group.

Note 28 - Events after the balance sheet date

In February 2025, Pexip had an employee share option excercise window where part of the SLT share compensation

program was settled in cash. As of 31.12.2024, this was recognized as an equity settled share based payment.

No other events that have significantly affected or may significantly affect the operations of the Group have occurred after

December 31, 2024.

Note 29 - Restructuring costs

The restructuring costs from the reorganization undertaken in 2024 is recognized through profit and loss on line item

‘other gains and losses’. The cost recognized mainly relates to remaining salary obligations after release date for terminated

employees and legal costs directly related to restructuring activities. Total restructuring costs amounted to NOK 16,3

million.

2024 2023

Total restructuring

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Note 30 - Restatement

In the annual accounts for 2023, Pexip Group had two impairment items in the profit and loss statement. One was related

to impairment of Goodwill of NOK 63,6 million. This was presented under the line item impairment in the 2023 accounts.

Pexip Group also had an impairment of fixed assets due to an office fire of NOK 9,0 million. This was presented under line

item depreciation and amortization. For 2024 Pexip has reclassifed the impairment of fixed assets to the impairment line

item to be more correct. This reclassification did not change the EBITDA or Net profit, and is only a reclassification between

the tho line items in the table below. This reclassification only affects the 2023 amounts.

2023 restated 2023 Change

EBITDA 102 355 102 355

Depreciation and amortization 126 425 135 465 -9 040

Impairment losses 72 687 63 647 9 040

Operating profit or loss -96 756 -96 756

Financial Statements

Pexip Holding ASA 2024

Highlights About Pexip Statement from the BoD Corporate Governance Financials Annual Report 2024

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Profit and Loss Statement

(NOK 1,000) Notes 2024 2023

Operating expenses 2,3 19 901 18 397

EBITDA -19 901 -18 397

Operating profit or loss -19 901 -18 397

Financial income 4 28 718 26 816

Net gain and loss on foreign exchange differences 4 623 4 940

Financial income/- expenses - net 33 341 31 756

Profit or loss before income tax 13 439 13 359

Income tax expense 5 2 957 2 939

Profit or loss for the year 10 483 10 420

Profit or loss is attributable to:

Owners of Pexip Holding ASA 10 483 10 420

Allocation of net profit and equity transfers

Dividends to shareholders 9 259 799 111 745

Transfers from equity -249 316 -101 326

Total allocations and equity transfers 10 483 10 420

Period January 1 - December 31

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Consolidated Statement of Financial Position

(NOK 1.000) Notes 2024 2023

ASSETS

Non-current assets

Deferred tax 5 30 012 32 969

Investments in group companies 6 1 115 380 1 090 038

Receivables from Group company 8 275 284

Total non-current assets 1 145 393 1 398 292

Current assets receivables

Other current assets 980 1 041

Financial Investments 7 206 066

Receivables from Group company 8 15 871 19 425

Cash and cash equivalents 404 405 503 255

Total current assets 627 322 523 721

TOTAL ASSETS 1 772 715 1 922 013

(NOK 1.000) 2024 2023

SHAREHOLDERS EQUITY AND LIABILITIES

Shareholders equity

Paid-in equity

Share capital 9,11 1 528 1 524

Share premium 9,10 1 744 394 2 115 938

Total paid-in equity 1 745 921 2 117 462

Equity

Other equity 9 -480 433 -628 608

Total other equity -480 433 -628 608

Total shareholders equity 1 265 489 1 488 854

Liabilities

Current liabilities

Trade and other payables -69 -68

Debt to group Company 8 247 496 321 482

Dividends 9 259 799 111 745

Total current liabilities 507 226 433 159

Total liabilities 507 226 433 159

TOTAL EQUITY AND LIABILITIES 1 772 715 1 922 013

Date as of December 31

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Board of Directors

SIGNATURE PAGE

Oslo, March 26, 2025

Board of Directors and CEO of Pexip Holding ASA

Kjell Skappel

Chair of the Board

Trond K. Johannessen

CEO

Irene Kristiansen

Board Member

Phillip Austern

Board Member

Silvija Seres

Board Member

Geir Langfeldt Olsen

Board Member

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Consolidated Statement of Cash Flows

(NOK 1.000) 2024 2023

Cash flow from operating activities

Profit or loss before income tax 13 439 13 359

Adjustments for

Depreciation, amortization and net impairment losses

Interest income/expenses - net

Fair value movements on financial instruments at fair value through profit and loss -6 066

Net exchange differences -4 634 -4 908

Financial income/(expenes) - net -22 651 -26 816

Other adjustments

Change in operating assets and liabilities

Change in trade payables -1 14

Changes in intercompany balances -70 430 8 719

Changes in other current assets and other liabilities 61 -11 006

Interest received 22 651 26 816

Net cash inflow/outflow from operating activities -67 631 6 178

Cash flow from investing activities

Cash out from loan to related parties -1 043 -24 752

Cash in from intercompany borrowings 276 327 117 738

Payment for financial assets at fair value through profit or loss -200 000

Net cash inflow/outflow from investing activities 75 284 92 986

Cash flow from financing activities

Proceeds from sale of treasury shares 609 109

Dividend paid to company’s shareholder -111 745

Net cash inflow/outflow from financing activities -111 137 109

Effects of currency rate changes on bank deposits, cash and equivalents

Net increase/(decrease) in cash and cash equivalents -103 483 99 273

Cash and cash equivalents start of the period 503 255 399 074

Effects of exchange rate changes on cash and cash equivalents 4 634 4 908

Cash and cash equivalents end of the period 404 405 503 255

Period January 1 - December 31

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Note 1 - Accounting policies

Pexip Holding ASA

Notes to the accounts, year ended 31 December 2024

The financial statements have been prepared in accordance with the Norwegian Accounting Act of 1998 and generally

accepted accounting principles in Norway.

Valuation and classification of assets and liabilities

Assets intended for permanent ownership or use in the business are classified as non-current assets.

Other assets are classified as current assets. Receivables due within one year are classified as current

assets. The classification of current and non-current liabilities is based on the same criteria.

Current assets are valued at the lower of historical cost and fair value.

Fixed assets are carried at historical cost, but are written down to their recoverable amount if this is lower than the

carrying amount and the decline is expected to be permanent. Fixed assets with a limited economic life are

depreciated on a systematic basis in accordance with a reasonable depreciation schedule.

Other long-term liabilities, as well as short-term liabilities, are valued at nominal value.

Foreign currency

All balance sheet items denominated in foreign currencies are translated into NOK at the exchange rate prevailing

at the balance sheet date.

Currency forward contracts are valued in the balance sheet at fair value on the balance sheet date.

Shares in subsidiaries and associates

Subsidiaries and investments in associates are carried at cost. A write-down to fair value will be performed if

the impairment is not considered to be temporary, and an impairment charge is deemed necessary according

to generally accepted acccounting principles. Received dividends and group contributions are recognised as other

financial income. The same applies for investments in associates.

Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation

model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most

appropriate inputs to the valuation model including the expected life of the share option or appreciation right,

volatility and dividend yield and making assumptions about them.

For the measurement of the fair value of the equity-settled transactions with employees at the grant date, the Group

uses the Black-Scholes-Merton option pricing model.

Revenue

Revenue is recognised when it is earned, i.e. when the claim to remuneration arises. This occurs when the service is

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performed, as the work is being done. The revenue is recognised with the value of the remuneration at the time of

transaction.

Receivables

Trade receivables and other receivables are recognised at nominal value, less the accrual for expected losses of

receivables. The accrual for losses is based on an individual assessment of each receivable.

Cash and cash equivalents

Cash and cash equivalents include cash, bank deposits and other monetary instruments with a maturity of less

than three months at the date of purchase.

Income taxes

Tax expenses are matched with operating income before tax. Tax related to equity transactions e.g.

group contribution, is recognised directly in equity.

Tax expense consists of current income tax expense and change in net deferred tax. Deferred tax liabilities and

deferred tax assets are presented net in the balance sheet.

Dividends

Dividends proposed in the annual statement is recognised as a liability in the balance sheet of Pexip Holding AS at balance

ending date.

Note 2 - Payroll costs, number of employees, benefits,

loans to employees etc.

(NOK 1,000)

Pexip Holding ASA has no employees.

Chief Executive Officer is compensated from Pexip AS.

The remuneration to CEO is disclosed in the managment remuneration report for 2024.

Remuneration to board of directors in the parent company

The remuneration to board of directors is disclosed in the management remuneration

report for 2024.

Auditor

Remuneration to Deloitte AS and their associates is as follows:

2024 2023

Statutory audit 2 591 2 802

Amounts are excl. of VAT

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Note 3 - Operating expenses

(NOK 1,000)

Other operating expenses 2024 2023

Operating expenses 10 971 9 831

Audit fees 2 591 2 802

Other professional fees 1 195 947

Other operating costs 5 144 4 817

Total 19 901 18 397

Note 4 - Financial Income and expenses

(NOK 1,000)

2024 2023

Interest income 6 781 7 390

Exchange gains 4 623 4 940

Other financial income 6 066

Interest income from Group company 15 871 19 425

Financial income 33 341 31 756

Net financial income(expense) 33 341 31 756

Of the Exchange gains and losses as of December 31 2024, NOK 4,623 thousand are related to currency changes (AUD,

DKK, EUR, GBP, SEK, SGD, USD) for the bank accounts.

Note 5 - Income tax expense

(NOK 1,000)

Specification of income tax expense: 2024 2023

Current income tax payable

Changes in deferred tax 2 957 2 939

Tax on profit/(loss) 2 957 2 939

Allocation of income tax expense between Norway 2024 2023

Tax on profit/(loss) 2 957 2 939

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Reconciliation from nominal to real income tax rate:

2024 2023

Profit/(loss) before taxation 13 439 13 359

Estimated income tax according to nominal tax rate (22%) 2 957 2 939

Tax effect of non deductible expenses

Income tax expense 2 957 2 939

Effective income tax rate 22% 22%

2024

Asset

2023

Asset

Specification for the tax effect of temporary differences and losses carried forward

Tax losses 30 012 32 969

Total 30 012 32 969

Deferred tax is determined based on the amount differences between the accounting principles and the taxation

purposes, of assets and liabilities at the reporting date. Deferred tax assets are generally recognised for all deductable

temporary differences to the extent that it is probable that they can be offset by future taxable income for the Pexip

Group.

The company has assesed that the tax losses will be recoverable in the future.

Note 6 - Investments in subsidiaries and associated companies

(NOK 1,000)

Date of acquisition Registered office Voting share Ownership share Company

Pexip AS 10/22/2018 Lysaker, Norway 100% 100%

Equity latest financial

statements

Profit/loss latest

financial statements Company

Pexip AS 140 875 79 724

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Note 7 - Financial assets

Financial assets 2024 2023

Financial assets at amortised cost:

Cash & cash equivalents 404 405 503 255

Total 404 405 503 255

Financial assets at fair value through profit and loss

Liquidity fund 206 066

Total 206 066

Total Financial assets 610 471 503 255

Fair value hierarchy

This overview explains the judgements made in determining the fair values of financial instruments in the

financial statements.

2024 2023

Level Amount Level Amount

Liquidity fund Level 1 206 066

Total Financial instruments at fair value 206 066

There was no transferred between levels in 2024 or 2023.

Level 1 fair value is based on quoted market prices at the end of the reported period.

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Note 8 - Related party transactions and balances

(NOK 1,000)

Related party transactions, profit and loss

Related party balance items

Relationship to

the counterpart

Intercompany

borrowings 2024

Intercompany

borrowings 2023Counterpart

Pexip AS Subsidiary 247 496 321 482

Total 247 496 321 482

Relationship to

the counterpart

Intercompany

receivables 2024

Intercompany

receivables 2023

Counterpart

Pexip AS Subsidiary 15 871 294 710

Total 15 871 294 710

Intercompany borrowings amounted to NOK 247,496 thousand and intercompany receivables to NOK 15 871 thousand.

Of the total cash of NOK 404,405 thousand, 236,025 thousand is related to the established cash pool for the Pexip Group.

Total cash amount within the cash pool for the Group per year end 2024 is booked in Pexip Holding ASA as the legal owner

of the cash.

Note 9 - Equity

(NOK 1,000)

capital

premium

Other

reserves

Retained

earnings

Total

equity

(NOK 1,000)

Balance at January 1, 2023 1 521 2 115 938 -75 895 -482 307 1 559 257

Profit or loss for the period 10 420 10 420

Total comprehensive income for the year 10 420 10 420

Dividend to shareholders -111 745 -111 745

By/sell treasury share 3 106 109

Share-based payments 30 815 30 815

Balance at December 31, 2023 1 524 2 004 193 -44 974 -471 887 1 488 855

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Balance at January 1, 2024 1 524 2 004 193 -44 974 -471 887 1 488 855

Profit or loss for the period 10 483 10 483

Total comprehensive income for the year 10 483 10 483

Dividend to shareholders -259 799 -259 799

By/sell treasury share 4 605 609

Share-based payments 25 342 25 342

Balance at December 31, 2024 1 528 1 744 394 -19 027 -461 404 1 265 489

Note 10 - Share-based payments

(NOK 1,000)

Pexip has two share-based compensation programs offered to employees: stock options and restricted stock units

(RSUs). There were no new Options granted in 2024. Legacy stock option programs (granted prior to 2022) vest over a

period of four years and fully vest, at earliest, in 2023 and at latest during 2025. Options expire 5 years after grant date

– at earliest in 2024 and latest in 2026. Option granted after 2022 vests over 3 years, and Expire 4 years after the Grant

Date. Exercise windows for stock options are currently offered once annually and are typically conditional upon active

employment at the time of exercise.

Pexip has a past practice of settling all share based payment transactions is equity instruments, and has historically not

settled any transactions in cash as of 31.12.2024. Pexip accounts for these transactions as Equity in 2024.

For RSUs granted in 2024, Monte-Carlo Simulation was used to correcly evaluate the Fair Value of the awards, given the

contractual clauses.

In 2024, Employees were given an opportunity to convert their Options into RSUs. ~98% of the employees pursued this

option and had their Employee Options converted into RSUs (1 302 825 Options converted into 521 130 RSUs). Senior

Leadership Team was not eligible for this offer.

Options 2024 2024 2023 2023

Weighted average

exercise price

Number Weighted average

exercise price

Number

Outstanding at January 1 23.63 6 660 450 26.14 5 252 950

Granted during the year 19.65 2 285 000

Converted during the year 41.26 -1 302 825 -10 000

Forfeited during the year 41.77 -245 000 28.04 -860 000

Exercised during the year 22.14 -27 500 14.50 -7 500

Expired during the year 32.00 -35 000

Outstanding at December 31 19.20 5 050 125 23.63 6 660 450

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RSUs 2024 2024 2023 2023

Number Number

Outstanding at January 1 2 070 325 1 234 532

Granted during the year 68 000 1 310 000

Converted 521 130 4 000

Forfeited during the year -334 036 -287 195

Adjusted 4 500

Exercised during the year -226 638 -193 912

Expired during the year -1 600

Outstanding at December 31 2 098 781 2 070 325

The exercise price of options outstanding at December 31, 2024 ranged beetween NOK 17.28 and NOK 85.00 (2023:

NOK 14.5 and NOK 100) and their weighted average contractual life was 3.45 years (2023: 2,85 years). Weighted average

contractual life for RSUs outstanding at December 31, 2024 was 3.05 years (2023: 1.97 years).

Of the total number of options outstanding at December 31, 2024 3 613 976 (2023: 1 333 225) had vested and were

excercisable (Weighted average exercise price of NOK 18.96). No RSUs were vested at December 31, 2024. All exercised

options was settled in equity.

The weighted average fair value of each option granted during the year is not applicable, since no Options were granted.

The weighted average fair value of each RSU granted during the year was NOK 30.25 (2023: NOK 13.02).

The total expense recognised for the period arising from equity-settled share-based payment transactions was NOK 46.1

million (2023: NOK 36.4 million).

The following information is relevant in the determination of the fair value of instruments granted during the year.

Options 2024 2023

Option pricing model used Black-Scholes/Monte Carlo

Weighted average share price at grant date (in NOK) N/A 20

Excercise price (in NOK) N/A 20

Weighted average expected life (in days) N/A 1 230

Expected volatility N/A 38.19%

Risk-free interest rate N/A 3.91%

The expected volatility is based on the volatility for a selection of comparable listed peer companies.

As there are no expected dividend payments, the dividend parameter is not included in the calculations.

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RSUs 2024 2023

Option pricing model used Monte-Carlo Simulation

Weighted average share price at grant date (in NOK) 32 13

Excercise price (in NOK)

Weighted average expected life (in

days)

1077 1095

Weighted Average Expected volatility 58 83%

Weighted Average Risk-free interest rate 3.64%

Note 11 - Share capital, shareholder information and dividend

(NOK 1,000)

The Parent Company’s registered share capital as at December 31, 2024 was NOK 1,566 thousand, divided into 104,429.671

ordinary shares with a par value of NOK 0.015. All issued shares have equal voting rights. The parent company holds

treasury shares of 2,588,729 making the presented share capital NOK 1,528 thousand.

The Parent Company’s registered share capital as at December 31, 2023 was NOK 1,566 thousand divided into 104,429.671

ordinary shares with a par value of NOK 0.015. All issued shares have equal voting rights. The parent company held treasury

shares of 2,842,867 making the presented share capital NOK 1,524 thousand.

Development in the number of issued and outstanding shares

Number of shares

(1,000)

Share capital

(1,000)

Outstanding at January 1, 2024

104 430 1 566

Outstanding at December 31, 2024 104 430 1 566

Treasury shares

Number of shares

(1,000)

Outstanding at January 1, 2024

2 842 867

Employee share scheme issue -254 138

Outstanding at December 31, 2024 2 588 729

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Ownership structure

The 20 largest shareholders as of December 31, 2024:

Shares Ownership

HOLMEN SPESIALFOND 9 945 040 9.52%

T D VEEN AS 6 146 946 5.89%

VERDIPAPIRFONDET DNB SMB 3 503 557 3.35%

Skandinaviska Enskilda Banken AB 3 417 607 3.27%

BJØBERG EIENDOM AS 3 000 200 2.87%

PEXIP HOLDING ASA 2 588 729 2.48%

VEEN EIENDOM AS 2 133 496 2.04%

STAVANGER VENTURE AS 2 102 000 2.01%

A HOLDINGS AS 2 010 000 1.92%

XFILE AS 1 850 000 1.77%

SYNESI AS 1 750 000 1.68%

SKANDINAVISKA ENSKILDA BANKEN AB 1 323 978 1.27%

Avanza Bank AB 1 310 696 1.26%

The Bank of New York Mellon SA/NV 1 259 570 1.21%

Tamorer ltd ATF Wylie Family Trust 1 189 000 1.14%

GLO CAPITAL AS 1 178 312 1.13%

LIA INVESTMENTS AS 1 161 252 1.11%

PEBRIGA AS 1 152 730 1.10%

SIRIUS AS 1 150 000 1.10%

CARABACEL AS 1 140 000 1.09%

Total top 20 shareholders 49 313 113 47.22%

Others 55 116 558 52.78%

Total 104 429 671 100%

Number of shares owned or controlled directly or indirectly by the Management Group and Board of Directors at

December 31, 2024:

Persons discharging managerial responsibilities Shares Ownership

Kjell Skappel (Chair of the Board) 10 382 442 9.94%

Irene Kristiansen(Board Member) 150 000 0.14%

Geir Olsen (Board Member) 1 178 312 1.13%

Phillip Lester Austern (Board Member) 100 000 0.10%

Silvija Seres (Board Member) 0 0.00%

Trond Johannessen (CEO) 160 000 0.15%

Ian Mortimer (CTO) 54 667 0.05%

Patricia Auseth (CMO) 32 134 0.03%

Åsmund Fodstad (CRO) 557 275 0.53%

Ingrid Woodhouse (CPO) 68 180 0.07%

Øystein Hem (CFO) 161 468 0.15%

Helge Hansen (COO) 12 700 0.01%

Total 12 857 178 12.31%

Dividend paid and proposed

Proposal for approval at AGM for financial year 2024 is that NOK 2.5 per share is paid as a dividend.

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Note 12 - Events after the balance sheet date

No events that have significantly affected or may significantly affect the operations of the Company have

occurred after December 31, 2024.

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Declaration in Accordance with 5-5 of the Securities Trading Act

We confirm that the financial statements for the period January 1 to December 31, 2024, have, to the best of

our knowledge, been prepared in accordance with applicable accounting standards and give a true and fair

view of the assets, liabilities, financial position and profit or loss of the company and the Group.

We also hereby declare that the annual report provides a true and fair view of the financial performance and

position of the company, as well as a description of the principal risks and uncertainties facing the company.

Oslo, March 26, 2025

Board of Directors and CEO of Pexip Holding ASA

Kjell Skappel

Chair of the Board

Trond K. Johannessen

CEO

Irene Kristiansen

Board Member

Phillip Austern

Board Member

Silvija Seres

Board Member

Geir Langfeldt Olsen

Board Member

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Auditor’s

Report

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Deloitte AS

Dronning Eufemias gate 14

Postboks 221

-0103 Oslo

Norway

+47 23 27 90 00

www.deloitte.no

Deloitte AS and Deloitte Advokatfirma AS are the

Norwegian affiliates of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a

UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent enti

ties. DTTL and

Deloitte NSE LLP do n

ot provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms.

Deloitte Norway conducts business through two legally separate and independent limited liability companies; Deloitte AS, prov

iding audit,

consulting, financial advisory and risk management services, and Deloitte Advokatfirma AS, providing tax and legal services.

Registrert i Foretaksregisteret

Medlemmer av Den norske Revisorforening

Organisasjonsnummer: 980 211 282

To the General Meeting of Pexip Holding ASA

INDEPENDENT AUDITOR’S REPORT

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Pexip Holding ASA, which comprise:

• The financial statements of the parent company Pexip Holding ASA (the Company), which comprise

the statement of financial position as at 31 December 2024, the profit and loss statement and

statement of cash flows for the year then ended, and notes to the financial statements, including a

summary of significant accounting policies.

• The consolidated financial statements of Pexip Holding ASA and its subsidiaries (the Group), which

comprise the statement of financial position as at 31 December 2024, statement of profit and loss,

statement of comprehensive income, statement of changes in equity and statement of cash flows for

the year then ended, and notes to the financial statements, including material accounting policy

information.

In our opinion

• the financial statements comply with applicable statutory requirements,

• the financial statements give a true and fair view of the financial position of the Company as at 31

December 2024, and its financial performance and its cash flows for the year then ended in

accordance with the Norwegian Accounting Act and accounting standards and practices generally

accepted in Norway, and

• the consolidated financial statements give a true and fair view of the financial position of the Group

as at 31 December 2024, and its financial performance and its cash flows for the year then ended in

accordance with IFRS Accounting Standards as adopted by the EU.

Our opinion is consistent with our additional report to the Audit Committee.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities

under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial

Statements section of our report. We are independent of the Company and the Group as required by relevant

laws and regulations in Norway and the International Ethics Standards Board for Accountants’ International

Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code),

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe

that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation

(537/2014) Article 5.1 have been provided.

The company was listed in 2020. We have been the company’s elected auditor since before the company was

listed. We have been the company’s elected auditor continuously for 5 years since the company was listed,

including the listing year.

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Page 2

Independent auditor’s report

Pexip Holding ASA

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit

of the financial statements of 2024. These matters were addressed in the context of our audit of the financial

statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on

these matters.

Carrying amount of goodwill

Assessment of Key Audit Matter Audit response

The carrying value of goodwill amounted to NOK 598,9

million on 31 December 2024 in the group financial

statements.

According to IFRS as adopted by the EU, the goodwill

is required to be tested for impairment annually or

whenever events or changes in circumstances

indicate that the carrying value may not be

recoverable. The recoverability of the goodwill is

dependent on assumptions related to future cash

flows and forecasts related to revenues, operating

margins and long-term growth rates as well as

discount rates.

These assumptions are of particular importance due

to the level of uncertainties and judgements involved.

The outcome of impairment assessments could vary

significantly if different assumptions were applied and

as such have a significant impact on the accounts.

Hence, this risk item is assessed to be a key audit

matter.

We assessed the design and implementation of the

controls Pexip has established related to assessment of

the recoverability of goodwill. We assessed and

challenged the reasonableness of management`s

judgements, in particular:

• the cash flow forecast;

• the long-term growth rate;

• and the discount rate used

by reference to the most recent financial budget

approved by management, past performance, externally

derived data and forecast for economic factors. We

evaluated the assumptions used and the sensitivity

analysis related to changes in key assumptions.

We used internal valuation specialists to assess

discount rate assumptions used and to validate the

mathematical accuracy of the cash flow models.

We evaluated the appropriateness of related

disclosures made in the financial statements.

Other Information

The Board of Directors (management) is responsible for the information in the Board of Directors’ report and

the other information accompanying the financial statements. The other information comprises information

in the annual report, but does not include the financial statements and our auditor’s report thereon. Our

opinion on the financial statements does not cover the information in the Board of Directors’ report nor the

other information accompanying the financial statements.

In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’

report and the other information accompanying the financial statements. The purpose is to consider if there is

material inconsistency between the Board of Directors’ report and the other information accompanying the

financial statements and the financial statements or our knowledge obtained in the audit, or whether the

Board of Directors’ report and the other information accompanying the financial statements otherwise

appear to be materially misstated. We are required to report if there is a material misstatement in the Board

of Directors’ report or the other information accompanying the financial statements. We have nothing to

report in this regard.

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Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report

• is consistent with the financial statements and

• contains the information required by applicable statutory requirements.

Our statement on the Board of Directors’ report applies correspondingly to the statement on Corporate

Governance.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation of financial statements of the Company that give a true and

fair view in accordance with the Norwegian Accounting Act and accounting standards and practices generally

accepted in Norway, and for the preparation of the consolidated financial statements of the Group that give a

true and fair view in accordance with IFRS Accounting Standards as adopted by the EU. Management is

responsible for such internal control as management determines is necessary to enable the preparation of

financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s and the

Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern.

The financial statements of the Company use the going concern basis of accounting insofar as it is not likely

that the enterprise will cease operations. The financial statements of the Group use the going concern basis

of accounting unless management either intends to liquidate the Group or to cease operations, or has no

realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes

our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements

can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably

be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional

scepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the financial statements, whether due to

fraud or error. We design and perform audit procedures responsive to those risks, and obtain audit

evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting

a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may

involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal

control.

• obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the Company’s and the Group's internal control.

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

• conclude on the appropriateness of management’s use of the going concern basis of accounting,

and, based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Company’s and the Group's ability to continue as a

going concern. If we conclude that a material uncertainty exists, we are required to draw attention in

our auditor’s report to the related disclosures in the financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to

the date of our auditor’s report. However, future events or conditions may cause the Company and

the Group to cease to continue as a going concern.

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• evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events

in a manner that achieves a true and fair view.

• obtain sufficient appropriate audit evidence regarding the financial information of the entities or

business activities within the Group to express an opinion on the consolidated financial statements.

We are responsible for the direction, supervision and performance of the group audit. We remain

solely responsible for our audit opinion.

We communicate with the Board of Directors regarding, among other matters, the planned scope and timing

of the audit and significant audit findings, including any significant deficiencies in internal control that we

identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical

requirements regarding independence, and to communicate with them all relationships and other matters

that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Board of Directors, we determine those matters that were of most

significance in the audit of the financial statements of the current period and are therefore the key audit

matters. We describe these matters in our auditor’s report unless law or regulation precludes public

disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not

be communicated in our report because the adverse consequences of doing so would reasonably be

expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

Report on Compliance with Requirement on European Single Electronic Format (ESEF)

Opinion

As part of the audit of the financial statements of Pexip Holding ASA, we have performed an assurance

engagement to obtain reasonable assurance about whether the financial statements included in the annual

report, with the file name PexipHoldingASA-2024-12-31-en.zip, have been prepared, in all material respects,

in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the

European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the Norwegian

Securities Trading Act, which includes requirements related to the preparation of the annual report in XHTML

format and iXBRL tagging of the consolidated financial statements.

In our opinion, the financial statements, included in the annual report, have been prepared, in all material

respects, in compliance with the ESEF regulation.

Management’s Responsibilities

Management is responsible for the preparation of the annual report in compliance with the ESEF regulation.

This responsibility comprises an adequate process and such internal control as management determines is

necessary.

Auditor’s Responsibilities

Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material

respects, the financial statements included in the annual report have been prepared in compliance with

ESEF. We conduct our work in compliance with the International Standard for Assurance Engagements (ISAE)

3000 – “Assurance engagements other than audits or reviews of historical financial information”. The

standard requires us to plan and perform procedures to obtain reasonable assurance about whether the

financial statements included in the annual report have been prepared in compliance with the ESEF

Regulation.

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As part of our work, we have performed procedures to obtain an understanding of the Company’s processes

for preparing the financial statements in compliance with the ESEF Regulation. We examine whether the

financial statements are presented in XHTML-format. We evaluate the completeness and accuracy of the

iXBRL tagging of the consolidated financial statements and assess management’s use of judgement. Our

procedures include reconciliation of the iXBRL tagged data with the audited financial statements in human-

readable format. We believe that the evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.

Oslo, 26 March 2025

Deloitte AS

Torgeir Dahle

State Authorised Public Accountant

(electronically signed)

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Appendix — Definitions

Revenue - Pexip as a

service

Revenue from Pexip as a service is the revenue stream for all Pexip products that are

delivered to customers as Software as a service. The customer is given access to Pexip

Products on a subscription basis.

Revenue - Self hosted

Software

Self-Hosted software revenue is revenue from delivering of software licenses to customers,

either on a termed subscription or as a perpetual license. This also includes maintanence

and installation services or other related consultancy services.

ARR - Contracted Annual

Recurring Revenue

Annualized sales from all active subscriptions/contracts and ordered subscriptions with

a future start date where the subscription is time-limited and recurring in nature. This

corresponds to Pexip’s order backlog.

Delta Annual Recurring

Revenue (DARR)

The difference in ARR from one period to another

NRR - Net Revenue

Retention Rate

The percentage of annual recurring revenue retained from customers’ existing in the prior

year, including upsell, downsell and churn.

FVTPL Fair Value through profit or loss

Appendix — Alternative performance measures (APMs)

The Group uses the following terms in the definition of APMs in this Report:

EBITDA Profit/(loss) for the period before net financial items, income tax expense, depreciation, and

amortization and impairment.

This number can be directly read out of the Consolidated statement of profit or loss.

Adjusted EBITDA EBITDA adjusted for cost that are not related to the ordinary business and that are non-

recurring costs.

2024 2023 Change Change in %

EBITDA 190 778 102 355 88 423 86%

Other gains and losses 15 936 10 908 5 029 46%

Adjusted EBITDA 206 714 113 263 93 451 83%

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EBITDA-margin EBITDA in percentage of revenue in the same period.

2024 2023 Change Change in %

EBITDA 190 778 102 355 88 423 86%

Revenue 1 118 562 993 582 124 980 13%

EBITDA Margin 17% 10% 7% 66%

EBITDA margin excl other

gains and losses

Adjusted EBITDA as a percentage of revenues in the same period.

2024 2023 Change Change in %

Adjusted EBITDA 206 714 113 263 93 451 83%

Revenue 1 118 562 993 582 124 980 13%

EBITDA margin excl

other gains and losses

18% 11% 7% 62%

Gross Profit Revenue less cost of goods sold

2024 2023 Change Change in %

Revenue 1 118 562 993 582 124 980 13%

Cost of Goods sold 105 102 99 004 6 098 6%

Gross Profit 1 013 460 894 578 118 882 13%

Gross Margin Gross Profit as a percentage of revenues in the same period.

2024 2023 Change Change in %

Gross Profit 1 013 460 894 578 118 882 13%

Revenue 1 118 562 993 582 124 980 13%

Gross Margin 91% 90% 1% 1%

Appendix — Alternative performance measures (APMs)

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Free cash flow The sum of operating cash flow, investing cash flow and principal lease payments. This

represents the free cash flow from the business, excluding potential equity or debt financing

cash flows as well as potential cash flows related to company acquisitions/divestitures. Fair

value changes to money market funds held for short-term cash needs is included similar to

interest income from cash in bank.

The numbers can be derived out from the cash flow statement

2024 2023 Change Change in %

Operating cash flow 244 478 177 593 66 885 38%

Investing Cash flow -240 659 -51 201 -189 458 370%

Principal element of

lease payments

-13 405 -21 737 8 332 -38%

Fail value adjustment

of financial investments

at FVTPL

6 066 6 066 100%

Net cash investment of

Financial investments

at FVTPL

200 000 200 000 100%

Free cash flow 196 480 104 655 91 825 88%

Net debt Net debt consist of both Non current and Current interest bearing liabilities less Financial

Investments and Cash and Cash equivalents. The numbers can be derived from the balance

sheet statement.

2024 2023 Change Change in %

Non Current Lease

liability

43 510 31 427 12 083 38%

Non Current

Borrowings

1 984 2 190 -207 -9%

Current Lease liabilities 18 123 16 069 2 054 13%

Current Borrowings 132 -132 -100%

Total interest bearing

Liabilities

63 617 49 818 13 799 28%

Cash in bank 422 100 522 692 -100 592 -19%

Financial Investments 206 066 206 066 100%

Net debt -564 549 -472 874 -91 675 19%

Appendix — Alternative performance measures (APMs)

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Lilleakerveien 2A, 0283 Oslo, Norway