Webstep

Investor Presentation • Feb 17, 2022

Q4 and full year 2021

Webstep ASA Oslo | 17 February 2022

Save Asmervik, CEO

Agenda

• 1. Q4 and FY 2021 highlights
• 2. Business review
• 3. Financial review
• 4. Outlook

Highlights from the quarter

Q4 and FY 2021 highlights

• Continued strong growth in revenues
• ○ 218.8 million for the quarter (+16.1%)
• ○ 775.0 million for the full year (+12.3%)
• Improved EBIT
• ○ Increased by 69% for Q4 and 32% FY 2021
• Employees
• ○ 478 employees at the end of the quarter
• ○ Increase of 63 employees over the last twelve months
• Strong financial position and positive outlook supports dividend proposal of NOK 1.70 per share

Business review

Go-to-market model

WEBSTEP DELIVERY MODEL CUSTOMER

A diversified customer base

Top 10 customers represent 34% of total revenues - up from 31% in Q3 2021

Supporting digitization of the fishing and aquaculture fleet

• Webstep is key contributor of software development at Moen Marin
• mLINK, mainly developed by Webstep, is a cloud based solution covering the need for multi level maintenance and safety.
• The mobile application, mLink, is easy to use and fully integrated for industry inspections
• Monitoring is based on live sensor data (IoT)

Moen Marin is the world's largest supplier of working boats to the aquaculture industry.

Supporting digital transformation in Equinor [UPDATE]

• Framework agreement providing Equinor with increased capacity for DevOps teams and individual consultants
• Team-as-a-service delivered by Webstep
• IT experts from Webstep working on software development in Equinor
• Estimated total contract value of approximately 140 million NOK (2021-2023)

Equinor is a broad energy company committed to developing oil, gas, wind and solar energy in more than 30 countries worldwide.

Organization and employees

9

• Strong local presence
• ○ Close to the Customer
• ○ Strategic Partner
• Building Competence
• ○ High quality competence events
• ○ Investing in the experts
• Reaching 478 employees at the end of 2021
• ○ +63 YtY comparison
• ○ Growth in all regions
• Successful recruitment and flexible work environment

10

Note: Numbers in parentheses refer to year-over-year growth in number of employees.

Environment and society

• Recognizing Websteps responsibility to the achievement of UN's Sustainable Development Goals
• Vocal and engaged in discussing societal matters
• Promoting the tech industry to female students in order to inspire more women to choose education in IT

Financial review

FINANCIAL REVIEW

Key figures - Group

	Q4	Q4	Y/Y	FY	FY	Y/Y
NOK million	2021	2020	change	2021	2020	change	Q4 highlights
Revenues EBITDA EBITDA margin EBIT EBIT margin	218.8 22.9 10.5% 18.4 8.4%	188.4 14.3 7.6% 10.9 5.8%	16.1% 59.9% 2.9 pts 68.9% 2.6 pts	775.0 81.2 10.5% 65.9 8.5%	690.0 63.9 9.3% 50.0 7.2%	12.3% 27.0% 1.2 pts 31.8% 1.3 pts	● Revenue from own consultants driven by higher headcount, utilization and hourly rates ○ Q4 NOK 202.3 (+23%) ○ 2021 NOK 706.2 (+16%)
Net profit Net free cash flow	13.3 37.7	7.8 25.6	69.8% 46.9%	48.5 46.9	36.7 59.4	32.0% (20.9%)	● Less use of subcontractors ○ Q4 NOK 16.5 (-30%)
Earnings per share (NOK) Earnings per share. fully diluted (NOK)	0.49 0.48	0.29 0.29	67.5% 65.2%	1.80 1.78	1.38 1.38	28.9% 29.0%	○ 2021 NOK 68.8 (-15%) ● Strengthening of the EBIT
Equity ratio Cash and cash equivalents	60.7% 46.7	64.3% 39.7	-3.6 pts 17.6%	60.7% 46.7	64.3% 39.7	-3.6 pts 17.6%	● Strong recruitment year in both Norway and Sweden
Number of employees, average (FTE) Number of employees, end of period Revenues per FTE (NOKt)	478 478 458	411 415 459	16.4% 15.3% (0.3%)	449 478 1,725	410 415 1,683	9.6% 15.3% 2.5%
EBIT per FTE (NOKt)	38.6	26.6	45.0%	146.7	122.0	20.3%	Note: FY 2021 EBIT impacted by one-off costs

Q4 highlights

• Revenue from own consultants driven by higher headcount, utilization and hourly rates
• ○ Q4 NOK 202.3 (+23%)
• ○ 2021 NOK 706.2 (+16%)
• Less use of subcontractors
• ○ Q4 NOK 16.5 (-30%)
• ○ 2021 NOK 68.8 (-15%)
• Strengthening of the EBIT
• Strong recruitment year in both Norway and Sweden

FINANCIAL REVIEW

Key figures - Norway

	Q4	Q4	Y/Y	FY	FY	Y/Y
NOK million	2021	2020	change	2021	2020	change
Revenues	188.6	158.5	19.0%	668.4	583.9	14.5%
EBIT	17.0	8.8	93.7%	61.1	41.6	46.8%
EBIT margin	9.0%	5.5%	3.5 pts	9.1%	7.1%	2 pts
Number of employees, average (FTE)	401	349	15.1%	379	348	9.0%
Number of employees, end of period	403	352	14.5%	403	352	14.5%
Number of workdays	64	63		252	252
Revenue breakdown
	Q4	Q4	Y/Y	FY	FY	Y/Y
NOK million	2021	2020	change	2021	2020	change
Oslo	80.8	62.9	28.4%	281.0	219.8	27.8%
Regional offices	97.1	82.4	17.9%	343.5	312.5	9.9%
Subcontractors	11.1	14.5	(23.3%)	45.8	54.0	(15.2%)
Other / eliminations	(0.4)	(1.3)	(68.9%)	(1.9)	(2.4)	(21.8%)
Total	188.6	158.5	19.0%	668.4	583.9	14.5%

Highlights

• Norwegian segment represents 86% of consolidated revenue in Q4 and full year
• Good recruitment year
• Solid growth in revenues
• Improved EBIT

FINANCIAL REVIEW

Key figures - Sweden

	Q4	Q4	Y/Y	FY	FY	Y/Y
NOK million	2021	2020	change	2021	2020	change
Revenues	30.2	29.9	0.7%	106.7	106.1	0.5%
EBIT	1.4	2.1	(32.6%)	4.8	8.4	(43.1%)
EBIT margin	4.8%	7.2%	-2.4 pts	4.5%	7.9%	-3.4 pts
Number of employees, average (FTE)	77	62	24.2%	70	63	11.9%
Number of employees, end of period	75	63	19.0%	75	63	19.0%
Number of workdays	64	63		253	252	0.4%

Q4 highlights

• Swedish segment represents 14% of consolidated revenue in Q4 and full year
• Employee growth YoY
• Revenues are impacted by
• - Reduction in use of subcontractors
• - Decrease in billable hours per employee
• 2021 constant currency
• - Revenues: +3.4m (+3%)
• - EBIT: -2.9m (-37%)

Outlook

Outlook

• Positive market outlook
• ○ High demand for Webstep services and consultants
• Capacity growth
• ○ Expect to be 485 employees by the end of Q1
• Main focus
• ○ Continued focus on existing GTM models
  • Boosting Team-as-a-Service deliveries
• ○ Organic growth in existing locations
  • Improved operations in Oslo and increased focus on the Webstep working experience
• ○ Activities for margin expansion
  • Scaling effect from organic growth and teams, as well as more effective onboarding

Questions?

Please contact us at ir@webstep.com

Appendix

Cash flow and net debt

Q4 highlights

• Q4 free cash flow of NOK 37.7 m
• Operating cash flow increased from NOK 26.3m in Q4-20 to NOK 41.9m in Q4-21
• Capex relates to office equipment
• Credit facility of NOK 110m in Norway and SEK 5m in Sweden per end of quarter

	31 Dec
NOK million	2021
Cash and cash equivalents*	(46.7)
Restricted cash	1.9
Debt to credit institutions
Leasing liabilities	61.5
Net interest bearing debt (NIBD)	16.7
NIBD/EBITDA (rolling 12 months)	0.2
Note: *Negative indicates positive amount.

20

APPENDIX

Top 20 shareholders at 14 February 2022

Shareholder name	Shares	%
1 Embro Eiendom AS	8 1 5 9 3 8 2	29,9%
2 VERDIPAPIRFONDET ALFRED BERG GAMBA	1 556 645	5,7%
3 J.P Morgan AG	1 395 632	5,1% Nominee
4 VERDIPAPIRFONDET DNB SMB	1 249 592	4,6%
5 SALT VALUE AS	1 237 218	4,5%
6 JAKOB HATTELAND HOLDING AS	1 000 000	3,7%
7 J.P Morgan AG	900 000	3,3% Nominee
8 HOLMEN SPESIALFOND	699 576	2,6%
9 VERDIPAPIRFONDET NORDEA NORGE VERD	664 317	2,4%
10 Danske Invest Norge Vekst	542 000	2,0%
11 Goldman Sachs International	416 571	1,5% Nominee
12 INTERTRADE SHIPPING AS	400 000	1,5%
13 Danske Bank A/S	320 000	1,2% Nominee
14 BLUEBERRY CAPITAL AS	317 007	1,2%
15 HAUSTA INVESTOR AS	300 000	1,1%
16 ESPEDAL & CO AS	264 363	1,0%
17 IVAR LØGE AS	250 000	0,9%
18 VERDIPAPIRFONDET NORDEA AVKASTNING	225 383	0,8%
19 MP PENSJON PK	224 000	0,8%
20 Pictet & Cie (Europe) S.A.	222 603	0,8% Nominee
Top 20 shareholders	20 344 289	74,5%
Other	6977919	25,5%
Total share outstanding	27 322 208

Disclaimer

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Webstep ASA and Webstep ASA's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Webstep ASA. Although Webstep ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Webstep ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Webstep ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.