Making work mobile

Making work mobile

Q1 Presentation

10 May 2021

Gross profitNOK million

29

96 97

0

50

100

150

200

FY 2019 FY 2020 LTM Q12021

EBITDA adjustedNOK million, EBITDA/GP %• Q1 gross profit of NOK 114 million, up from NOK 80

million in the first quarter of 2020

• Q1 EBITDA adjusted of NOK 13 million vs NOK 12

million in the first quarter of 2020

• Signed eight new managed mobility service

contracts in Q1, with an estimated value of NOK 15

million and ~3,300 managed devices

• Honourable mention in Gartner Magic Quadrant for

Managed Mobility Services - Global

• Acquisition of software provider Famoc,

strengthening Techstep’s MMS capabilities and

unlocking European expansion

Highlights

2

279

378412

FY 2019 FY 2020 LTM Q12021

10%

25% 24%

>200k

managed

devices

2016 2017 2018 2019 2020 2021

Techstep established,

acquisitions and

consolidation of the

Norwegian market

Further expansion with

new partners and

Swedish operations

Focus on integration

and transition towards a

software & services-led

company

Managed Mobility

Services and recurring

business model

Organic business development and 11 acquisitions

3

Techstep’s transformation journey: Becoming a Managed Mobility Services leader

Gross profit2016-2021 Q1 LTM

M&A to strengthen

MMS offering and

unlock European

expansion

Convert

existing

customers

to MMS

On-board

new

customers

Geographical

expansionM&A

• IP and software

• Customer base

• Market position

>1mmanaged devices

by 2025

4

Ambition to manage >1 million devices by 2025

~200kmanaged

devices

today

All Techstep figures include Optidev

Making work mobile

Bus drivers uses tablets for damage

reports and timetables in the field

Electricians document their work

and invoice immediately between

site visits

Employees do admin work on

devices while in-store

Enterprise includes companies with 200 or more employeesTechstep market estimates

~6 000Enterprises in the Nordics

~550Techstep’s enterprise

customer base

~200 000Devices managed by

Techstep

Some of Techstep’s enterprise customers

6

Helping customers harvest the value of Managed Mobility Services

+203k MMS contracts signed in the

quarter

New managed devices in the

quarter

Total managed devices at the

end of the quarter

+3,3008

Adding new brands and organizations to Techstep’s MMS customer base

Techstep, through its subsidiary Optidev AB, has signed an agreement with the Swedish bus company Vy Travel AB to develop a new customised Managed Mobility Service solution

The agreement includes Advisory and Development Services for developing a customised MMS-solution, as well as Platform Management for the solution’s post development administration

Optidev's TrueMobile platform provides the backbone for the system, which enables efficient development and easy deployment, helping Vy’s drivers and customers travel smarter

8

Smarter travel with customised MMS solution

1,000Managed devices

Platform management

Advisory Services

In addition to its core MMS-offering, Techstep provides complimentary solutions for the digital workplace

Techstep has signed a new agreement with Bertel O. Steen to provide a tailored cloud-based, omni-channel Customer Center-as-a-Service (CCaaS) solution for handling customer dialogues via voice, chat, e-mail and social media across multiple mobile, devices and locations, with a high degree of security and operational stability

The CCaaS Solution will simplify and improve Bertel O. Steen’s internal customer service workflows, ultimately facilitating an enhanced customer experience

9

Helping deliver excellent customer experiences

14.5NOKm over three years

CCaaS Solution

0

1

2

3

4

5

6

7

8

9

10

Future full-service MMS

solution

0

1

2

3

4

5

6

7

8

9

10

Standaloneservices

0

1

2

3

4

5

6

7

8

9

10

Today's full-service MMS

solution

Using Techstep’s service stack… ...and drive gross profit per managed device…to build recurring revenue bundles…

Powered by

Techstep IP, software and mobility expertise

10

Driving value creation with value-adding services

Advisory Services

Platform Management

Asset Management


HONOURABLE MENTION:

MAGIC QUADRANT FOR

MANAGED MOBILITY SERVICES, GLOBAL

Honourable mention in Gartner Magic Quadrant for Managed Mobility Services - Global

11

• Gartner is an independent international IT

research agency

• Gartner has recently published the Magic

Quadrant for Managed Mobility Services - Global,

an analysis of the service offering of international

MMS providers

• Techstep received an honorable mention from

Gartner as the only “Nordic-based provider with a

complete MMS-offering”

Financials

Q1 2021

• Gross profit increase of 42% in Q1 2021

due to acquisitions in Q4 2020 and an

increase in leased out hardware

• EBITDA adjusted is positively affected by

the gross profit increase but negatively

affected by increase in personnel cost due

to acquisitions and reinvestments

• Increase in depreciation relates to the

growth in the leasing portfolio, as well as a

prudent approach on residual values

• Amortization of intangible assets, mainly

from acquisitions

• Net interest-bearing debt of NOK 152

million, mainly related to Optidev acquisition1). Capex does not include leased out hardware to customers, booked as capex as per IFRS 16.

EBITDA adjusted in Q1 2021 excludes non-recurring items such as M&A and restructuring costs of NOK 0.5 million.

The 2021 financial statements include the full consolidation effect of the leasing portfolio from Techstep Finance.

The Optidev acquisition is included in the financial statement form Q4 2020.

Key figures Q1 2021

(amounts in NOK 1 000) Q1 2021 Q1 2020 FY 2020

Revenues 305 930 292 677 1 142 866

Annual Recurring Revenue (ARR) 65 948 37 127 63 329

Gross profit 114 032 80 454 378 287

EBITDA adjusted 13 331 11 879 95 640

EBITDA 12 857 11 629 104 455

EBITA (13 209) (393) 17 122

EBIT (23 999) (5 431) (10 771)

Net profit (loss) for the period (24 696) (3 391) (23 557)

EBITDA adj. margin (%) 4.4 % 4.1 % 8.4 %

EBITDA rep. margin (%) 4.2 % 4.0 % 9.1 %

EBITA margin (%) (4.3 %) (0.1 %) 1.5 %

EBIT margin (%) (7.8 %) (1.9 %) (0.9 %)

Net profit (loss) for the period (%) (8.1 %) (1.2 %) (2.1 %)

Cash 62 796 19 996 27 203

Net interest-bearing debt 152 307 27 498 166 838

Capex1) 6 760 4 842 21 386

13

104 108 106 113 117

919 36

85104

3536

38

43

48

9493

92

105

115

3935

32

31

27

279 285 293

305

378

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Hardware Leasing Own software

Advisory & Services Operating commissions Other

Gross Profit - last twelve months rolling

NOK million

• Increase in the leasing portfolio; continued

transformation from traditional one-off deliveries to

recurring revenue

• Growth in the MMS segments Own software,

Advisory & Services, driven by acquisitions

• As expected, continued reductions in commissions

• Focus on rolling out the Managed Mobility

Services (MMS) offering expected to grow gross

profit from software and leasing going forward

• Driving recurring revenue/ARR, visibility and

profitability

Strategic transformation drive Gross profit development

14

69 82 96126 119

388401

419

462 468

18%20%

23%

27%25%

0%

10%

20%

30%

40%

50%

60%

0

50

100

150

200

250

300

350

400

450

500

Q1-20 Q2-20 Q3-20 Q4-20 Q1-21

Proforma Gross profit Proforma EBITDA adj.

Proforma EBITDA adj./Gross profit

Gross profit, EBITDA adj. and in % of GP – LTM

NOK million and percent • Increase in profitability from last year due to an

increase in high margin products, further

supported by Optidev acquisition

• Increased costs relative to gross profit growth,

leading to reduction in EBITDA conversion in the

quarter

• Long-term focus to increase EBITDA conversion

• Operational leverage and economies of scale

• Increasing software, IP and mobility expertise

driven profit

15

Proforma gross profit and EBITDA adj. development

Proforma; Acquisitions made during 2020 included from 1 January 2019 (LTM)

29 29 28 30 30

24 26

19 19 22

8 89

910

27

2934

43

48

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

MEM white label TrueMobile TrueMobile (Proforma) Origo Origo user

• 78% growth in Origo users YoY, 11%

compared to Q4 2020

• NOK 66 million in annual recurring revenue

from own software

• Gross margin on ARR ~95%

• MMS related: NOK 36 million

• Non-MMS (white label): NOK 30 million

• Increase in sale and roll-out of MMS offering to

drive ARR growth

ARR of NOK 66 million on own software

16

ARRNOK million

Origo users

Thousand

Truemobile ARR based on reported LTM revenues

YoY growth in Origo users of 78%

• Equity ratio at 44%

• Intangible assets include goodwill and customer

relations and technology

• Tangible assets consist of right-of-use assets and

leasing of hardware, premises and IT licenses

• Net interest-bearing debt NOK 152 million, including

acquisition loan NOK 57 million and seller’s credit NOK

70 million.

• Other current liabilities includes mostly deferred

revenue on hardware leasing contracts

Balance sheetNOK 1 000 31.03.2021 31.12.2020

Intangible assets 704 748 733 263

Tangible assets 207 618 173 616

Financial assets 210 213

Inventories 15 188 43 258

Accounts receivable 148 753 187 983

Other receivables 30 296 33 594

Cash and cash equivalents 62 796 27 203

Total assets 1 169 609 1 199 131

Total equity 512 073 563 451

Deferred tax 29 769 27 659

Non-current interest-bearing debt 97 181 108 539

Other non-current debt 42 029 54 488

Current interest-bearing liabilities 117 922 85 502

Accounts payable 109 625 154 442

Tax payable (241) (750)

Public taxes, provisions 39 105 39 756

Other current liabilities 222 145 166 044

Total equity and liabilities 1 169 609 1 199 131

17

• Operational cash inflow includes a net

decrease in working capital of NOK 81

million driven by reduced accounts

receivables and inventory, as well as

increased deferred revenue on leased out

hardware

• Net investments include leased out

equipment of NOK 74 million, investments in

software and IT development of NOK 7

million and proceeds of leasing assets NOK

7 million.

• Net financing of NOK 19 million includes

lease repayments of NOK 4 million, increase

in bank overdraft in cash pool of NOK 31

million offset by repayments of loans of NOK

8 million

Cash flow NOK 1 000 Q1 2021 Q1 2020 FY 2020

Net cash flow from operational activities 93 697 (1 274) 71 120

Net cash used on investment activities (74 471) (23 334) (170 361)

Net cash flow from financing activities 19 416 (3 247) 79 619

Net change in cash and cash equivalents 38 642 (27 855) (19 622)

Cash and cash equivalents at beginning of period 27 203 44 588 44 588

Effects of exchange rate changes on cash and cash eq. (3 048) 3 264 2 236

Cash and cash equivalents at end

of the period 62 796 19 996 27 203

18

Executing on

M&A strategy

Q1 2021

Relevant

business

• Software led companies

targeting enterprises, or

verticals, in high demand

for mobility solutions

• Advisory/consulting

companies specialized

in Mobility

• Product distribution, if present

in the market with one of the

above

Maturity • Proven track record

Deal

structure

• Mix of shares, cash and

seller’s credit

Customer

base

Market

position

Software and

IP platform

Techstep targeting M&A to strengthen:

20

Growth strategy focused on M&A

Convert

existing

customers

to MMS

On-board

new

customers

Geographical

expansionM&A

• IP and software

• Customer base

• Market position

A leader in

Managed Mobility

Services (MMS)

21

Famoc acquisition aligns perfectly with Techstep growth strategy

Famoc delivers industry-leading

software solutions for Managed

Mobility Services

+

Famoc is a software company providing Enterprise Mobility Management solutions

22

Notes: PLN 1.00 = NOK 2.20Famoc financials per February 2021Revenue CAGR from 2019A to 1H2021

Famoc at a glance

• Famoc delivers industry-leading

software solutions for Enterprise

Mobility Management

• Enterprise customers in several

European countries

• Founded in 2006 with offices in

Gdansk and Warsaw (Poland)

• 44 employees, with ~50%

developers

Financial aspects

• NOK 26 million ARR

• 19% recurring revenue CAGR

• Total Enterprise Value of NOK 103

million (PLN 47m)

• EV/ARR multiple of 4x

%

+

0

1

2

3

4

5

6

7

8

9

10

Full MMSsolution

0

1

2

3

4

5

6

7

8

9

10

Standaloneservices

0

1

2

3

4

5

6

7

8

9

10

Today's full-service MMS

solution

Famoc strengthens our service

stack…

...reflected in gross profit growth potential…driving our MMS solution’s

value creation…

All-in-one MMS solution

23

Making Techstep an all-in-one MMS provider


incl.

Advisory Services

Platform Management

Asset Management

Strengthening Techstep’s MMS capabilities and unlocking European expansion

24

Famoc completes Techstep

• Provides customers with a complete,

automated and fully integrated MMS

platform

• Gives users control, security,

compliance and lifecycle management

• All within one dashboard – all at a

lower cost

Techstep completes Famoc

• Techstep’s structural capabilities and

know-how to accelerate Famoc’s

channel sales

• Inclusion of Techstep’s own IP and

software into Famoc’s current offering

will add significant customer value,

and thus quicken Famoc’s growth

The combined force of the two companies are set to embrace MMS opportunities

in a vastly expanded market – with a serious competitive advantage

25

Notes: PLN 1.00 = NOK 2.20All numbers LTMFamoc numbers per February 2021; Techstep numbers per 1q2021

Acquisition expected to improve Techstep’s financial metrics

Key comments

• Famoc expected to increase Techstep’s ARR by approximately 40%

• Software share of gross profit to increase from 12% to 17%

• Significant increase in segment gross profit by moving to in-house

Platform Management. Gross profit impact of up to NOK 300 per

managed device

• Famoc (including partner network) has a current reach of 850,000

devices, representing a significant cross-selling opportunity for

Techstep

• More competitive offering towards customers to accelerate growth

%Gross

profit mix

(%)

Gross

margin (%)

EBITDA

(NOKm,

adj.)

36.9%

104.4

Software

Advisory/services

Leasing

Hardware

+

ARR

(NOKm) 92.1

Upcoming equity raise – Techstep has the full support of largest shareholders

26

Acquisition of Famoc intended to be financed through an equity private placement

and a credit facility increase through DNB

Equity raise expected to be completed in the nearer term

The equity private placement will be fully underwritten by Techstep’s largest

shareholders: Datum AS, Middelborg Invest AS and Karbon Invest AS!

Outlook and

summary

Q1 2021

28

Targeting strong MMS growth in 2021

Managed

Mobility

Services

Financials

KPI

New MMS contracts

Origo user growth

Q1 2021 Medium Term

8

78%*

> 30

> 100%

Gross profit growth 42%* 20-25%

EBITDA/Gross profit 12% 20-25%

Development capex 6.8 NOKm 30-35 NOKm

*From Q1 2020

29

• Gross profit growth continues, stable results

in slow quarter

• Signed eight new managed mobility service

contracts

• Honourable mention in Gartner Magic

Quadrant for Managed Mobility Services

• Acquisition of software provider Famoc,

strengthening Techstep’s MMS capabilities

and unlocking European expansion

• Targeting strong MMS growth in 2021

Summary

Q&A10 May at 10:00 CET

Send your questions to [email protected]

Join us here https://techstep.zoom.us/j/82808508081

30

Appendix

31

Management team

Erik Haugen – Chief Commercial Officer

Mr Haugen is an international business professional, bringing with him broad commercial experience. He spent twelve years in London working with sales, marketing and business management for companies like Pioneer and Sony Ericsson. Subsequently he moved into finance and professional services sales at Lindorff AS (now Intrum) in 2011 where he has been responsible for strategic sales, key account management and business development for a large portfolio of clients within telecoms, utilities, trade, SME and public sector.

Mads Vårdal – Chief Product Officer

Mr Vårdal has been with companies within the Techstep sphere for more than 11 years. He came from a central position in Teki Solutions AS and has been a leading figure for the development of SmartWorks. He has previously had a leading position in Nordialog Skøyen AS and CEO in Buskerud Tele AS.

Marius Drefvelin – Chief Financial Officer

Mr. Drefvelin joined Techstep in January 2017 and was previously the CFO of Creuna, a leading Nordic technology and communications consultancy, for five years. Prior to this, he worked nine years as a consultant within mergers, acquisitions and IPOs.

Jens Haviken – Chief Executive Officer

Mr. Haviken is an experienced executive within consulting, managed services, software and hardware distribution. He has a proven track record of developing, rebuilding and streamlining operations of companies in the ICT sector. Prior positions held by Haviken include VP Services and Solutions and Country Manager at Dustin Group AB (publ) and various Director roles at Microsoft and Accenture.

Inge Paulsen – Managing Director Norway

Mr. Paulsen is an experienced executive manager with a proven track record from companies like Clear Channel, Eltel Networks/SønnicoTele, Infratek/Hafslund, Implement and Accenture. His broad experience comes from heading strategic business development projects in venture businesses or turnaround cases as well as holding various executive positions responsible for profit & loss.

32

Fredrik Logenius – Managing Director Norway

Mr Logenius is a first-mover, entrepreneur and an experienced executive within the information technology and services industry. His skill set is broad and based on entrepreneurship and strategy, agile methodologies, software development and mobile solutions. MrLogenius was awarded Entrepreneur of the Year 2020 in Borås due to business achievements as Managing Director in Optidev AB.

Board of Directors

Ingrid Leisner - Board member (since 2016)

Ms. Leisner has served on the Board in Techstep since January 2016. Ms. Leisner’s directorships over the last five years include current board positions in Storage Group ASA, Norwegian Air Shuttle ASA, Maritime and Merchant ASA. Ms. Leisner has a background as a trader of different oil and gas products in her 15 years in Equinor ASA. Her years of experience and skills within business strategy, M&A, management consulting and change management has been very valuable when serving on the board of several companies listed on Oslo Børs. She holds a Bachelor of Business degree with honours from the University of Texas in Austin.

Jens Rugseth – Chairman of the board (since 2019)

Jens Rugseth is a co-founder and Chairman of the Board of Crayon Group ASA and Link Mobility Group ASA. He has been a serial founder of a number of companies within the IT-sector over the past 30 years. Mr. Rugseth has also held the position of Chief Executive Officer in some of the largest IT-companies in Norway, including ARK ASA, Cinet AS and Skrivervik Data AS. Mr. Rugseth studied business economics at the Norwegian School of Management. Jens Rugseth is a Norwegian citizen, currently residing in Oslo, Norway.

Anders Brandt - Board member (since 2018)

Mr. Brandt has more than 20 years of experience in international entrepreneurship, technology, venture capital and digital services. He is managing partner in the venture capital fund Idekapital, and has co-funded and exited numerous companies including DinSide, OMG, Viken Fibernett, Mytos, Meshtech and Bubbly Group. Brandt has 14 years of board experience of listed companies on Oslo Børs and Nasdaq Stockholm, whereof several tech companies.

Melissa Mulholland - Board member (since 2021)

Ms. Mulholland is Chief Executive Officer of Crayon, a worldwide digital transformation expert. Prior to Crayon, Melissa spent 12 years at Microsoft, leading strategy and business development through cloud transformation. Prior to Microsoft, she spent two years at Intel Corporation, driving a cross-company analysis into the effectiveness of using recycled chips for solar technology. She has authored 12 books focused on how to build a business in the Cloud and is a board advisor for SHE, Europe’s largest gender equality conference. Ms. Mulholland holds an MA in Business Administration and Strategic Management from Regis University in Colorado.

33

Largest shareholders

Investor Number of shares % of top 20 % of total Type Country

DATUM AS 32 317 975 22.41% 17.63% Ordinary Norway

MIDDELBORG INVEST AS 21 617 764 14.99% 11.79% Ordinary Norway

KARBON INVEST AS 19 448 795 13.49% 10.61% Ordinary Norway

Swedbank AB 19 003 892 13.18% 10.37% Nominee Sweden

SPAREBANK 1 MARKETS AS 9 000 000 6.24% 4.91% Ordinary Norway

TIGERSTADEN AS 5 000 000 3.47% 2.73% Ordinary Norway

CIPRIANO AS 4 968 835 3.45% 2.71% Ordinary Norway

VERDIPAPIRFONDET DNB SMB 4 085 911 2.83% 2.23% Ordinary Norway

ZONO HOLDING AS 4 000 007 2.77% 2.18% Ordinary Norway

BRIDGE CAPITAL AS 3 738 317 2.59% 2.04% Ordinary Norway

TVENGE 3 000 000 2.08% 1.64% Ordinary Norway

SÅ&HØSTE AS 2 925 936 2.03% 1.60% Ordinary Norway

NORDHOLMEN AS 2 106 512 1.46% 1.15% Ordinary Norway

ADRIAN AS 2 038 851 1.41% 1.11% Ordinary Norway

PIKA HOLDING AS 1 956 512 1.36% 1.07% Ordinary Norway

NORDIALOG ENSJØ AS 1 946 253 1.35% 1.06% Ordinary Norway

UNIFIED AS 1 849 457 1.28% 1.01% Ordinary Norway

IDEKAPITAL AS 1 797 532 1.25% 0.98% Ordinary Norway

SABINUM AS 1 794 977 1.24% 0.98% Ordinary Norway

DATUM VEKST AS 1 600 000 1.11% 0.87% Ordinary Norway

Total number owned by top 20 144 197 526 100.00% 78.67%

Total number of shares 183 295 472 100.00%

34

This presentation (the “Presentation”) has been prepared by Techstep ASA (“Techstep” or the “Company” and together with its subsidiaries the "Techstep Group"). The Presentation has been prepared

and is delivered for information purposes only. It has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated market place.

The contents of the Presentation are not to be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should consult with its own professional

advisors for any such matter and advice.

The Company makes no representation or warranty (whether express or implied) as to the correctness or completeness of the information contained herein, and neither the Company nor any of its

subsidiaries, directors, employees or advisors assume any liability connected to the Presentation and/or the statements set out herein. This Presentation is not and does not purport to be complete in any

way. By receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the Company, its financial position and prospects and that you will conduct your own

analysis and be solely responsible for forming your own view of any refinancing and the potential future performance of the Company’s business.

The information included in this Presentation may contain certain forward-looking statements relating to the business, financial performance and results of the Techstep Group and/or the industry in which it

operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, “expects”, “predicts”,

“intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions

and views of the Company or cited from third party sources are solely views and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from

any anticipated development. None of the Company or any other company in the Techstep Group, or any of its advisors or any of their parent or subsidiary undertakings or any such person’s affiliates,

officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy

of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company and its advisors assume no obligation to update any forward-looking statements or to

conform these forward-looking statements to the Techstep Group's actual results. Investors are advised, however, to inform themselves about any further public disclosures made by the Company, such as

filings made with Oslo Børs or press releases.

This Presentation does not constitute any solicitation for any offer to purchase or subscribe any securities and is not an offer or invitation to sell or issue securities for sale in any jurisdiction, including the

United States. Distribution of the Presentation in or into any jurisdiction where such distribution may be unlawful, is prohibited. The Company and its advisors require persons in possession of this

Presentation to inform themselves about, and to observe, any such restrictions.

This Presentation speaks as of the date set out on the front page, and there may have been changes in matters which affect the Techstep Group subsequent to the date of this Presentation. Neither the

issue nor delivery of this Presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of

the Techstep Group have not since changed, and the Company does not intend, and does not assume any obligation, to update or correct any information included in this Presentation.

This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo City Court as exclusive venue.

By receiving this Presentation, you accept to be bound by the terms above.

35

Disclaimer

Documents

Making work mobile