Klappir Grænar Lausnir.: Financial result for H1 2023

The interim financial statements of Klappa Green Solutions hf. were approved by the company's board and CEO at a board meeting on August 29, 2023. The interim financial statements cover the period from January 1, 2023 to June 30, 2023.

• Klappir global ecosystem grew by 70% YoY
• Subscription revenue grew by 52% YoY
• Revenue in Iceland increased by 17% YoY

Main financial highlights H1 2023, in Icelandic kroner

• Revenue was 269.7 million compared with 230.6 million in H1 2022
• EBITDA was 54.0 million (20.1%), compared with 46.6 million (20.2%) in H1 2022.
• Net profit was 7.1 million, compared with 14.0 million in H1 2022.
• Total assets were 683 million, compared with 615 million in H1 2022
• Equity was 380 million, compared with 373 million in H1 2022
• Equity ratio was 55.7%, compared with 60.7% in H1 2022
• Total liabilities were 302 million compared with 241 million in H1 2022
• Cash end of H1 was 116 million compared with 12 million in H1 2022

Shared figures pertain exclusively to the company's operations in Iceland, with Klappir Nordic's contributions not being included in this financial report. In the first half of 2023, Klappir Green Solutions hf. funded a loss of 10.4 million due to sales and marketing activities for its subsidiary Klappir Nordic Aps. 

Recent business highlights

New EU directive and standard for Sustainability Accounting and Reporting: The unveiling of the Corporate Sustainability Reporting Directive (CSRD) within the European Union has set the stage for a transformative shift towards corporate responsibility for sustainability. This groundbreaking directive, along with the accompanying EU Sustainability Reporting Standard (ESRS) will impact an estimated 50,000 European companies directly. Notably, this directive isn't just a requirement; it's a gateway to a new era of sustainability accounting and reporting. Companies will be obligated to submit comprehensive annual reports encompassing financial- and sustainability statements. Klappir warmly welcomes this new directive, as the Klappir sustainability platform is fully prepared to fulfill these obligations for its customers.

CSRD/ESRS product capability: Klappir has recently launched a significant new product release aimed at assisting companies in complying with the CSRD directive and reporting in line with the ESRS standard. This is a major milestone for both Klappir and its customers, as it now offers this capability as part of its subscription service. In connection with this, Klappir will be offering ESRS service packages to all customers who plan and are required to comply with the new regulations, enabling them to fully take advantage of the Klappir software platform. This announcement indicates that Klappir, in collaboration with its clients, is at the forefront of ESRS accounting and reporting in the European market.

Premium Plan introduced: In relation to the new CSRD/ESRS product announcement, Klappir has reorganized its subscription plans to better support the three main groups of customers in its sustainability ecosystem. The new Premium Plan has been created to cater to customers who must adhere to the recently implemented CSRD/ESRS regulations. The Legacy Plan, on the other hand, is intended for companies that wish to maintain their existing subscription plan. The Freemium Plan is exclusively for value-chain partners who collaborate with their customers by exchanging data. These brand-new plans are designed to address the growing demand and stricter criteria for sustainability and ESG data transparency, resulting from increased product utilization.

International expansion: As part of our strategic growth initiative, Klappir is actively expanding its presence in Europe by building a robust network of value-added partners. This strategic partnership approach is designed to expand Klappir's reach into untapped markets across the continent. By collaborating with a diverse array of partners renowned for their expertise, we are solidifying our ability to provide tailored solutions that cater to the unique needs of each market. This expansion paves the way for innovative collaborations, transformative growth, and the creation of a resilient ecosystem that ultimately benefits our customers, partners, and Klappir company.

Navigating the Evolving Legal Sustainability Landscape: The evolving legal framework surrounding sustainability accounting and reporting presents both challenges and opportunities. Klappir, ever agile, is primed to navigate this dynamic terrain. Klappir is prepared for audits and certifications within the ISAE 3000 framework, with anticipation for demand from the CSRD directive. Klappir's robust software solutions are poised to empower companies in meeting the evolving legal demands of international sustainability regulations.

Jon Agust Thorsteinsson, CEO: “We are very pleased with our achievements in the first half year of 2023. In addition to the Icelandic operation, our sales and distribution of our sustainability software from Klappir Nordic have gained substantial momentum, reflecting the escalating demand for our robust sustainability software platform for regulatory compliance. It is encouraging to note that our customer base has expanded significantly, indicating growing trust in Klappir.  The Nordics continue to be a solid ground for new customer acquisitions, and we are delighted to observe a consistent year-over-year increase in customer subscriptions.
Our sustainability ecosystem is dynamically evolving, boasting a noteworthy milestone of engaging over 3000 companies that rely on our software for solid sustainability accounting, comprehensive reporting, and seamless data sharing. Undoubtedly, the Klappir ecosystem holds paramount importance in aiding companies to monitor, calculate, and transparently communicate their sustainability performance, thereby facilitating their purposeful sustainability journey.
Our continued investment in research and development (R&D) has ensured that we are able to deliver new, innovative product capability that will empower Klappir customers to comply with the new European Sustainability Reporting Standards (ESRS) and Corporate Sustainability Reporting (CSRD) directives. The directive mandates companies to provide an annual report encompassing both financial statements and sustainability statements. By our offerings, we are giving Klappir customers a significant edge, positioning them at the forefront of their industry.
Expanding our sales operations through both direct sales and partner networks presents a strategic growth opportunity. By leveraging the power of direct engagement and forming strong alliances with partners, we are poised to utilize the opportunity in the EU market effectively. Our commitment to tailored strategies, continuous innovation, and unwavering customer focus will drive us toward success in this exciting phase of expansion”.

About Klappir

Klappir is a leading global sustainability software company, founded in 2014 and headquartered in Iceland. Klappir stands out due to its comprehensive approach to operations, trusted experience, groundbreaking product portfolio, and strategic expansion into new markets. In a world increasingly focused on sustainability, Klappir is not only driving its own growth but also spearheading a transformative shift in how businesses align with the complex challenges of sustainability accounting and reporting.

Klappir has emerged as the foremost provider of sustainability software, offering an advanced platform thoroughly crafted to empower effective sustainability management across various sectors such as businesses, municipalities, and governments. The core of Klappir's offering lies in its ability to seamlessly facilitate engagement with sustainability data, enabling enhanced efficiency and well-informed decision-making.

As a global leader in sustainability software solutions, Klappir holistic approach to operations, innovative product offerings, and strategic market expansion pave the way for businesses to thrive in an increasingly sustainability-driven world. Klappir's visionary journey promises not only growth but also a transformative impact on how companies navigate and embrace the complexities of sustainability accounting and reporting.

Klappir B shares are listed on Nasdaq First North Iceland (KLAPP-B). For more information, visit https://klappir.com.  The Financial Report for the first six months of the year can be accessed at: https://www.klappir.com/investors

Contacts for further
Information:

Jon Agust Thorsteinsson, CEO

+354 664 9200
jat@klappir.com

Olof Asta Olafsdottir, CFO

+354 661 0202
olof@klappir.com

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• Árshlutareikningur KGS 30.06.23

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