Keepit A/S

Ledelsesberetning

Key activities In an era where data shapes our identities, businesses, and societies, Keepit stands at the forefront of modern data protection, management, and intelligence. With groundbreaking innovations, Keepit is redefining how organizations worldwide safeguard and manage cloud data, solidifying its position as a category leader and a true disruptor in cloud data protection and intelligence. The past year and follow-up on development expectations from last year The financial year 2023-24 marked another period of strong growth and investment, aligned with our business plan. Keepit Group delivered revenue growth of 42% during the year and EBITDA of DKK -56.0m. These results were broadly in line with the guidance set out last year. The net result for the Group for the year shows a loss of DKK -107.7m and, as of 30 September 2024, equity is DKK -97.5m. Capital resources Keepit has secured significant new investment of USD 50m, the first tranche of which closed on 17 September 2024 and the second closed on 11 December 2024. The investment is structured as an equity investment, with the proceeds paid in cash to Keepit. The new investment came in through existing Keepit investor One Peak, including a group of independent investors, and the Export and Investment Fund of Denmark (EIFO). This accomplishment underscores the strong confidence in our business model, innovation, and long-term vision. It also strengthens our capacity for growth and reinforces our commitment to delivering exceptional value to our customers, both today and in the future. As of 30 September 2024, the company had cash and cash equivalents of DKK 124.2m. The amount includes the proceeds of the first closing, as described above. The proceeds from the second closing will add an additional DKK ~270m to the cash balance. This will bring the total cash reserves up to just under DKK 400m. Special risks - operating risks and financial risks Keepit receives income in different currencies with the majority being DKK, EUR and USD. The operational currency exposure from the day-to-day business is well balanced. However, a significant share of Keepit’s debt is denominated in USD which implies some financial currency exposure, since most of the company’s cash reserves are held in DKK. The interest rates on most of Keepit’s debt are variable. Currency risks and interest rate risks are currently not hedged. Targets and expectations for the year ahead In line with last year, the market for cloud data protection and management is expected to continue to grow significantly, and Keepit will continue to invest in growth. Based on the budget prepared at the start of the fiscal year, the company expects continued significant topline growth between 30%-50% and negative EBITDA in the range of DKK -100m to DKK -125m for the fiscal year 2024-25. Research and development To maintain product leadership in the market, Keepit continues to invest in new product research and development. With the rapid development of new technologies, growing cybersecurity threats and increased legal compliance requirements for customers and their data estate, this continues to be a key investment focus for the Company and central to the future growth. The ability to attract and retain talent is critical, and Keepit has been successful in this regard as illustrated by the close to 400 skilled employees and contractors across multiple locations, at the end of the fiscal year. Employee turnover was reduced during the year. More than DKK 70m was invested in research and development during the fiscal year, of which DKK 38.8m was capitalized. External environment Keepit recognizes the importance of limiting the environmental impact of cloud service operations and therefore takes initiatives to reduce carbon emissions. Because Keepit recognizes that the power consumption of its data centres constitutes the largest potential contributor to carbon emissions, it has always been committed to relying on clean energy, as far as possible. All of Keepit’s data centers located in the Americas and EMEA are powered by 100% renewable energy. Keepit observes the ten principles of the United Nations Global Compact on human rights, labor rights, environmental protection, and combatting all forms of corruption. These principles constitute the minimum standards for Keepit and are integrated into Keepit’s Code of Conduct available at https://www.keepit.com/code-of-conduct/.Every person working for Keepit, whether permanently or temporarily employed, subcontracted, or volunteering, is subject to the Code of Conduct, including management and the Board of Directors. The Code of Conduct applies to all countries in which Keepit operate and to every employee working on behalf of Keepit within those countries.Keepit has a People and Culture department which is responsible for creating the best conditions for employees and ensuring their well-being by e.g., providing leaders with different leadership tools and supporting them in conducting performance dialogues, managing organizational changes, and handling on/offboarding procedures in accordance with internal guidelines to ensure that Keepit is an equal opportunity employer and bases employment decisions on qualifications, experience, and potential. Uncertainty relating to recognition and measurement Completed development projects represents a book value of DKK 92.1m as of 30 September 2024. Capitalized costs of completed development projects comprise salaries directly or indirectly attributable to the Company’s development activities. On a monthly basis, it is assessed if costs qualify for capitalization. This assessment is based on managerial estimates including the nature of the development activities and the potential current and future addressable market. Capitalized development projects are amortized on a straight-line basis over 10 years. Costs not passing these criteria are expensed in the income statement. Management has performed an impairment test based on a discounted cash flow framework, where the main variables are cash flow in a forecast period, discount rate, and growth in cash flow in the terminal period. Based on the performed impairment test, management sees no grounds for impairment. Unusual events The financial position at 30 September 2024 of the Group and the results of the activities and cash flows of the Group for the financial year for 2023/24 have not been affected by any unusual events. Subsequent events As mentioned under capital resources, Keepit has secured further capital resources in the form of additional equity investments. This means a further DKK ~270m was paid in to the company’s bank account during December 2024.No other events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.