AI Terminal
Webstep
Investor Presentation • Feb 13, 2025
3788_rns_2025-02-13_e69b41bb-d688-4e1e-8ae9-c35c1a848527.pdf
Investor Presentation
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Agenda
Highlights from the quarter
Organisation and projects
Highlights from the quarter
Highlights
- ● Significant improvement in EBIT margin despite a continued soft market
- Solid growth in the regional offices, supported by high activity in the energy sector
- ● NOK 25.2 million share buyback in October
- ● The board of directors proposes for the Annual General Meeting a dividend of NOK 2.30 per share, total NOK 62.3 million
Organisation and projects
Haugalandet (9)
Sørlandet (21)
Oslo (213)
Stavanger (55)
Bergen (88)
Trondheim (65)
Our strategic focus areas
- 1. One Webstep: Enhance collaboration across regional office and leverage the benefits of a strong local presence in key areas, while also being an integral part of a large organization.
- 2. Be even more customer-focused and include a greater degree of business development in our sales processes
Strategic focus areas supported by organisational and operational changes:
- Further build our visibility and positioning in the market
- One national sales organisation
- Building structures and systems for knowledge sharing and competence development across the company
- Nurture the company culture Webstep should be the most attractive employer for experienced consultants
Our main service areas
Targeted positioning – We sharpen our positioning within three key service areas to secure large, complex projects and gain market share.
Solution-oriented competence – Our competence development is driven by addressing customer challenges, ensuring relevance and impact in our service offerings.
Financial review
Group Q4
Key figures - Group
| Q4 | Q4 | FY | FY | |
|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 |
| Revenues | 225.6 | 225.6 | 874.1 | 861.6 |
| Change | (0.0%) | 6.9% | 1.5% | 12.7% |
| EBITDA | 19.5 | 2.7 | 85.1 | 59.8 |
| EBITDA margin | 8.6% | 1.2% | 9.7% | 6.9% |
| EBIT | 15.5 | (26.8) | 66.7 | 17.0 |
| EBIT margin | 6.9% | (11.9%) | 7.6% | 2.0% |
| Net profit | 12.5 | (26.9) | 49.2 | 4.4 |
| Net free cash flow | 43.7 | 85.0 | 22.2 | 72.2 |
| Cash flow from operations | 44.8 | 86.0 | 25.7 | 66.9 |
| Equity ratio | 55.6% | 50.1% | 56.6% | 50.7% |
| Earnings per share (NOK) | 0.48 | (0.97) | 1.80 | 0.16 |
| Earnings per share, fully diluted (NOK) | 0.48 | (0.97) | 1.79 | 0.16 |
| Number of FTEs, average | 447 | 471 | 448 | 459 |
| Number of FTEs, end of period | 446 | 471 | 446 | 471 |
| Revenue per FTE (TNOK) | 504.1 | 479.3 | 1,950.8 | 1,875.4 |
| EBIT per FTE (TNOK) | 34.7 | (57.0) | 149.6 | 36.2 |
Q4 Comments
- Operating revenues for the quarter at the same level as last year
- Revenue from own consultants up by 1.9 per cent
- Revenue from subcontractors down by 20.0 per cent
- Operating revenues for the full year increased by 1.5 per cent compared to last year
- Revenue from own consultants up by 2.8 per cent
- Revenue from subcontractors down by 8.1 per cent
- EBIT for the quarter is affected by:
- One-off costs of NOK 3.4 (35.0) million mainly related to severance payments
- Increased employer's contributions of NOK 1.7 (4.8) million
- EBIT for the full year is affected by:
- Reduced salary expenses to administrative staff as a result of the cost reduction programme initiated at the end of FY 2023
- Reduced operating expenses as a result of increased cost focus, especially within travel and conference activities
● FTEs EoP -25 last twelve months
○ A consequence of sharpening and streamlining the organisation
Webstep market update
- ● Long-term trends of digitalisation remain stable
- ○ Webstep well positioned to support transformation initiatives following the The Norwegian Government's digitalisation strategy for 2024-2030 in both private and public sector
● Market trends from late summer have persisted
- Webstep successfully leveraging higher demand along the coast by attracting new customers and increasing utilisation
- Oslo continues to experience lower demand and increased competition
- ● Leverage our expertise to deliver on our strategy
- ○ Webstep ensuring contracts with Farmalogg and Nysnø Climate Investments, supporting the customers' strategic ambitions
Outlook
Digitalisation and AI as key drivers
● The long-term trend of digitalisation continues, with energy transition and AI adoption being particularly strong market drivers.
Mixed activity level in the market - moderate demand
● Vibrant energy sector, while other sectors remain cautious with regards to investments
Organisational adaptation
● The company is developing towards a more dynamic and agile organisation.
Long-Term growth and profitability goals
● Webstep aims to enhance collaboration, strengthen customer focus, and improve strategic business development to achieve a long-term goal of exceeding a 10% EBIT margin with sustainable top-line growth.
Questions?
Please contact us at [email protected]
Appendix
Customer base characteristics
Optimizing sales and strengthening focus on enterprise market and large clients
A large and loyal customer base in both private and public sector
A diversified customers base between business sectors
Cash flow and net debt
| 31 Des | |
|---|---|
| NOK million | 2024 |
| Cash and cash equivalents* | (82.4) |
| Restricted cash | 0.5 |
| Debt to credit institutions | 0.0 |
| Leasing liabilities (non-current and current) | 63.2 |
| Net interest bearing debt (NIBD) | (18.7) |
| NIBD/EBITDA (rolling 12 months) | (1.1) |
NIBD/EBITDA (rolling 12 months) including IFRS 16 Lease liabilities (0.2)
● *Negative indicates positive amount
- The Group has credit facility of MNOK 110
- Credit facility was unutilised by the end of third quarter
- Capex relates to office and equipment
Top 20 shareholders at 11 February 2025
| Shareholder name | Shares | % | |
|---|---|---|---|
| 1 EMBRO EIENDOM AS | 8,312,727 | 29.5% | |
| 2 HVALER INVEST AS | 2,989,936 | 10.6% | |
| 3 HOLMEN SPESIALFOND | 2,238,860 | 7.9% | |
| 4 PROTECTOR FORSIKRING ASA | 1,820,002 | 6.5% | |
| 5 SALT VALUE AS | 1,535,258 | 5.4% | |
| 6 VPF FONDSFINANS UTBYTTE | 1,349,125 | 4.8% | |
| 7 WEBSTEP ASA | 1,090,939 | 3.9% | |
| 8 VERDIPAPIRFONDET DNB SMB | 1,029,409 | 3.7% | |
| 9 J.P. Morgan SE | 794.149 | 2.8% | Nominee |
| 10 J.P. Morgan SE | 664,317 | 2.4% | Nominee |
| 11 INTERTRADE SHIPPING AS | 400,000 | 1.4% | |
| 12 ESPEDAL & CO AS | 308,980 | 1.1% | |
| 13 MP PENSJON PK | 224,000 | 0.8% | |
| 14 LEROLI AS | 197,281 | 0.7% | |
| 15 BJARØY KAPITAL AS | 175,782 | 0.6% | |
| 16 Nordnet Bank AB | 115,317 | 0.4% Nominee | |
| 17 J.P. Morgan SE | 105,666 | 0.4% | Nominee |
| 18 KRONOKO HOLDING AS | 96,137 | 0.3% | |
| 19 ALIDERA AS | 91,269 | 0.3% | |
| 20 Saxo Bank A/S | 91,128 | 0.3% Nominee | |
| Top 20 shareholders | 23,630,282 | 83.8% | |
| Other | 4,557,386 | 16.2% | |
| Total share outstanding | 28,187,668 | 100.0% |
Revenue, EBIT and FTE development
Revenue (LTM) EBIT (LTM)
Number of FTEs (EoP)
Number of FTEs, end of period
| Number of FTEs, end of period | Q4 | Q3 | Q2 | Q1 | Q4 |
|---|---|---|---|---|---|
| Norway | 2024 | 2024 | 2024 | 2024 | 2023 |
| Norway total | 446 | 449 | 451 | 448 | 471 |
| Oslo | 213 | 210 | 213 | 211 | 223 |
| Bergen | 96 | 95 | 88 | 84 | 91 |
| Trondheim | 61 | 63 | 65 | 65 | 65 |
| Stavanger | 49 | 53 | 55 | 56 | 59 |
| Sørlandet | 20 | 21 | 21 | 23 | 24 |
| Haugalandet | 8 | 8 | 9 | 9 | 9 |
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.