Techstep ASA — Audit Report / Information 2017

Aug 14, 2017

INFORMATION MEMORANDUM

Techstep ASA

(Techstep ASA is incorporated in Norway as a public limited company with its registered seat in Oslo, Norway)

Acquisition of all issued and outstanding shares in BKE TeleCom AB

The information in this information memorandum (the "Information Memorandum") has been prepared by Techstep ASA, a public limited liability company existing under the laws of Norway with business registration number 977 037 093 and listed on Oslo Børs with ticker "TECH" ("Techstep" or the "Company", and together with its subsidiaries, the "Group") in connection with the Company's acquisition of all issued and outstanding shares in BKE Telecom AB (the "BKE Acquisition")

This Information Memorandum serves as an information document pursuant to Section 3.5 of the Continuing Obligations for Stock Exchange Listed Companies (the "Continuing Obligations"). The Continuing Obligations apply in respect of companies with shares admitted to trading on Oslo Børs (the "Oslo Stock Exchange") and this Information Memorandum has been submitted to the Oslo Stock Exchange for inspection before it was published. This Information Memorandum is not a prospectus and has neither been inspected nor approved by the Norwegian Financial Supervisory Authority (Nw: Finanstilsynet) in accordance with the rules that apply to prospectuses.

On 3 July 2017, the Company entered into a transaction agreement (the "BKE SPA") with the current shareholders of BKE TeleCom AB (the "Sellers"). The Company will acquire 100% of the shares in BKE TeleCom AB ("BKE") against payment of a cash consideration, through grant of a seller credit and through issuance of new shares in the Company (the "BKE Consideration Shares") to the Sellers.

This Information Memorandum does not constitute an offer or an invitation to buy, subscribe or sell the securities described herein, and no securities are being offered or sold pursuant to this Information Memorandum. In reviewing this Information Memorandum, you should carefully consider the matters described in Section 2 "Risk factors" beginning on page 20.

The date of this Information Memorandum is 14 August 2017

IMPORTANT INFORMATION

For the definition of certain capitalized terms used throughout this Information Memorandum, please see Section 17, "Definitions and glossary of terms", which also applies to the front page.

The information contained herein is current as of the date hereof and subject to change, completion and amendment without notice. The publication and distribution of this Information Memorandum shall not under any circumstances create any implication that there has been no change in the affairs of the Company or the Group or that the information herein is correct as of any date subsequent to the date of this Information Memorandum. No person is authorized to give information or to make any representation in connection with the BKE Acquisition other than as contained in this Information Memorandum. The contents of this Information Memorandum are not to be construed as legal, business or tax advice. Each reader of this Information Memorandum should consult with his or her own legal, business or tax advisor as to legal, business or tax advice. No due diligence has been made on the Company in connection with preparation of this Information Memorandum.

All inquiries relating to this Information Memorandum should be directed to the Company. No other person is authorized to give any information about, or to make any representation on behalf of, the Company in connection with the BKE Acquisition. If any such information is given or representation made, it must not be relied upon as having been authorized by the Company.

Readers are expressly advised that the Shares are exposed to financial and legal risk and they should therefore read this Information Memorandum in its entirety, in particular Section 2, "RISK FACTORS".

The distribution of this Information Memorandum may in certain jurisdictions be restricted by law. Persons in possession of this Information Memorandum are required to inform themselves about and to observe any such restrictions. No action has been taken or will be taken in any jurisdiction by the Company that would permit the possession or distribution of this Information Memorandum, in any country or jurisdiction where specific action for that purpose is required.

This Information Memorandum shall be governed by and construed in accordance with Norwegian law. The courts of Norway, with Oslo District Court as legal venue, shall have exclusive jurisdiction to settle any dispute which may arise out of or in connection with this Information Memorandum.

TABLE OF CONTENTS

		Page
$\mathbf{1}$	SUMMARY
1.1	Section A - Introduction and warnings
1.2	Section B-Issuer
1.3	Section C - Securities
1.4	Section D - Risks
$\overline{2}$	RISK FACTORS
2.1	General
2.2	Operational risks
2.3	Financial risks
2.4	Risks relating to the Shares
2.5	Risks relating to the BKE Acquisition
3	STATEMENT OF RESPONSIBILITY
4	GENERAL INFORMATION
4.1	Third party information
4.2	Forward looking statements
5	PRESENTATION OF BKE TELECOM AB
5.1	Overview
5.2	Business overview
5.3	Key financial figures
6	THE BKE ACQUISITION
6.1	Overview
6.2	Background and reason for the BKE Acquisition
6.3	The Sellers ………………………………………………………………………………………………
6.4	Description of the BKE Acquisition
6.5	Expenses
6.6	Issuance of the BKE Consideration
7	PRESENTATION OF TECHSTEP
7.1	Overview
7.2	Hardware and subscription
7.3	Solutions
7.4	Customers and value chain
7.5	Strategy
7.6	History and development

7.7	Material contracts
7.8	Legal structure
7.9	Property, plants and equipment
7.10	Major shareholders
8	MARKET AND INDUSTRY OVERVIEW FOR TECHSTEP
8.1	Techstep market position
8.2	Key market drivers
8.3	The hardware and subscription segment
8.4	The solutions segment
8.5	Dependence on patents and licenses
8.6	Competitors
9	BOARD OF DIRECTORS, MANAGEMENT AND EMPLOYEES
9.1	General
9.2	Board of Directors
9.3	Executive Management
9.4	Service contracts
9.5	Audit, compensation and nomination committee
9.6	Employees
9.7	Conflict of interest, etc.
9.8	Corporate governance
10	OPERATING AND FINANCIAL INFORMATION
10.1	Basis for preparation and accounting principles and policies
10.2	Selected historical financial information
10.3	Capitalisation and indebtedness
10.4	Working capital statement
10.5	Trend information
10.6	Financial statements and auditors
10.7	Significant changes in financial and trading position after 31 March 2017 72
10.8	Legal and arbitration proceedings
10.9	Restricted funds, credit facilities
11	UNAUDITED PRO FORMA FINANCIAL INFORMATION
11.1	Background to the preparation of unaudited pro forma financial information 74
11.2	Sources of unaudited pro forma financial information
11.3	Basis for preparation of the unaudited pro forma financial information 74

11.4	Unaudited pro forma condensed financial information - income statement for the twelve months ending 31 December 2016
11.5	Unaudited pro forma condensed financial information - balance sheet as of 31 December 2016
11.6	Notes to the unaudited pro forma financial information
11.7	Independent assurance report on the pro forma financial information 80
12	SHARE CAPITAL, SHAREHOLDER MATTERS
12.1	Share capital
12.2	Dividends and Dividend policy
12.3	The Articles of Association and certain aspects of Norwegian law
13	SECURITIES TRADING IN NORWAY
13.1	lntroduction
13.2	Trading of equities and settlement
13.3	Information, control and surveillance
13.4	The VPS and transfer of Shares
13.5	Shareholder register
13.6	Disclosure obligations
13.7	Insider trading
13.8	Mandatory offer requirement
13.9	01. Compulsory acquisition
14	TAXATION
14.1	Taxation of dividends
14.2	Taxation of capital gains on realisation of shares
14.3	Net wealth tax
14.4	VAT and transfer taxes
14.5	lnheritance tax
15	SELLING AND TRANSFER RESTRICTIONS
16	ADDITIONAL INFORMATION
16.1	Documents on display
16.2	Incorporated by reference
17	DEFINITIONS AND GLOSSARY OF TERMS

Appendices:

• Articles of Association
• Independent assurance report on pro forma financial information
• Audited historical financial information for BKE TeleCom AB for the financial year 2015/2016
• Audited historical financial information for BKE TeleCom AB for the financial year 2016/2017

1 SUMMARY

Summaries are made up of disclosure requirements known as "Elements". These Elements are numbered in Sections A – D (A.1 – D.3).

Because some Elements are not required to be addressed, there may be gaps in the numbering sequence of the Elements.

Even though an Element may be required to be inserted in the Summary because of the type of securities and issuer, it is possible that no relevant information can be given regarding the Element. In this case a short description of the Element is included in the Summary with the mention of "not applicable".

1.1 Section A – Introduction and warnings

A.1	Warnings	This summary should be read as introduction to the Information Memorandum.
		Any decision to invest in the securities should be based on consideration of the Information Memorandum as a whole by the investor.
		For the definitions of terms used throughout this Information
		Memorandum, see Section 17 "Definitions and glossary of terms".
A.2	Consent to use	Not applicable.
	Information
	Memorandum by
	financial
	intermediaries

1.2 Section B – Issuer

B.1	Legal and Commercial Name	The Company's legal name is Techstep ASA, and is sometime referred to commercially as Techstep.
B.2	Domicile/ Legal Form/ Legislation/ Country of Incorporation	The Company is a public limited liability company incorporated under the laws of Norway in accordance with the Norwegian Public Limited Liability Companies Act ("PLCA") with organisation number 977 037 093. The Company's registered office and principal place of business is at Brynsveien 3, 0667 Oslo, Norway and its telephone number is
		+47 915 233 37.
B.3	Key factors relating to operations/ Activities/ Products sold/ Services performed/ Principal	Techstep is a business to business ("B2B") solutions and services provider offering mobile hardware and subscriptions, and solutions for mobility and communications.
	markets	Techstep, along with its subsidiaries, are building and expanding

		their market offerings to become the preferred digital workplace vendor. The strategy for building the solutions platform is through organic growth, acquisitions and partnerships with an aim to become a fully integrated digital solutions provider. The Company's two main business segments are: (i) Hardware, represented under the Nordialog brand of Teki Solutions and under the brand Telering of Apro, and (ii) Solutions, represented by SmartWorks, Mytos and InfraAdvice, direct or indirect subsidiaries of the Company.
		The BKE Acquisition will make the Company one of the leading provider of business telecommunication equipment and services in Sweden. The product and services offering comprises hardware communication equipment, cloud Private Branch Exchange, operator services and other services for the public sector and corporates in Sweden.
		The principal markets in which the Group competes is the mobility and communications industry in Norway, and with the recent acquisition of InfraAdvice the Group also gains access to the Swedish market.
B.4 a	Recent significant trends	Techstep operates in a structurally attractive enterprise mobility market, where there are strong demand and growth opportunities. Since the first acquisitions were made in the summer and autumn of 2016, Techstep has taken major steps to position itself as a leading, complete provider of the digital workplace and enterprise mobility management in the Nordics. Strategically important acquisitions have been made to complement Techstep's product portfolio and increase its customer base.
		Techstep acquired Teki Solutions AS in the second half of 2016 (the "Teki Gruppen Transaction" and the "Teki Solutions Transaction"), and acquired Mytos AS (the "Mytos Acquisition"), Apro Tele and Data AS (the "Apro Acquisition"), Nordialog Asker AS (the "Nordialog Asker Transaction") and InfraAdvice Sweden AB (the "InfraAdvice Aqusition") during first quarter and the start of the second quarter 2017. The Company has been working to integrate the abovementioned companies throughout second quarter 2017.
		The Company and the organization are currently undergoing a restructuring and transformation to deliver according to a revised strategy. Techstep will concentrate on the development of five key areas in 2017:
		- Establish "Mobile as a Service" ("MaaS"), an integrated service that bundles hardware, a mobile platform, support and service, and business applications tailored to the customer, and sell this as a monthly fee per user.

		- Change the sales focus from one-off hardware sales to recurring revenue by establishing a "solution hub" that can package solutions for sale.
		- Expand geographically in the Nordic region by establishing presence in Sweden.
		- Streamline distribution by package solutions for the products and services that are offered to customers.	establishing	self-service and
		Strengthen partnerships through cooperation with selected partners	increased sales	and closer
B.5	The Group	The Company, the parent company of the Group, is a holding company and the operations of the Group are carried out through the subsidiaries of the Group.
B.6	Persons having an interest in the Company's capital or	All ordinary Shares issued by the Company have equal voting rights, with each Share carrying the right to 1 vote at the General Meeting.
	voting rights	Shareholders owning 5% or more of the Shares have an interest in the Company's share capital which is notifiable pursuant to the Norwegian Securities Act.
		As of the date of the Information Memorandum, shareholders who, to the knowledge of the notifiable interest under Norwegian law, are:		the only Company, have a
		Name of shareholder	No. of Shares	%
		Datum AS Middelborg Invest AS Palos AS Skarestrand Invest AS	30,079,142 28,066,931 11,666,667 7,513,372	21.29% 19.87% 8.26% 5.32%
		The Company is not aware of any shareholder agreements or other similar understandings among its shareholders that may result in a change in control of the Company. To the best of the Company's knowledge and belief, no shareholder, or group of shareholders, controls the Company, directly or indirectly.
B.7	Selected historical key financial information	The following selected financial information for the years ended 31 December 2015 and 31 December 2016 and the three month periods ended 31 March 2016 and 31 March 2017 have been extracted from the Company's audited consolidated financial statement as of and for the year ended 31 December 2016 and from its unaudited consolidated financial statement as of and for the three month periods ended 31 March 2017. Note that the Teki Gruppen Transaction for accounting purposes has been carried out

	as a reversed takeover, see Section 10.1 "Basis for preparation and
	accounting principles and policies" for a further description. The
	Company's annual financial statement has been prepared in
	accordance with International Financial Reporting Standards as
	adopted by the European Union ("IFRS"). The selected financial
	information included herein should be read in connection with, and
	is qualified in its entirety by reference to, the annual financial
	statement for the year 2016 and the interim report for the first
	quarter 2017, which is incorporated by reference to this
	Information Memorandum, see Section 16.2 "Incorporated by
	reference".

Selected statement of income data

(amounts in NOK 1,000)	Q1 2017	Q1 2016	2016	2015
Revenue	144,963	133,958	570,526	622,508
Other revenue	256	1,059	2,972	7,818
Total revenue	145,218	135,017	573,498	630,325
Cost of materials	98,275	96,709	405,210	447,472
Salaries and personnel costs	27,995	24,722	104,041	99,787
Depreciation	444	207	903	1,349
Amortisation intangible assets	3,709	4,783	18,984	22,655
Other operation costs	13,837	13,416	51,169	58,624
Other cost	10,551	0	17,511	0
Total operating expenses	154,811	139,836	597,818	629,887
Operating profit	(9,592)	(4,820)	(24,319)	438
Financial income and expense	(196)	(1,571)	(5,117)	(10,216)
Technical loss	0	0	(21,217)	0
Net financial expense	(196)	(1,571)	(26,334)	(10,216)
Profit before taxes	(9,788)	(6,391)	(50,654)	(9,778)
Income taxes	526	1,196	5,954	1,697
Net income	(9,262)	(5,195)	(44,700)	(8,081)
Net income attributable to
Non-controlling interests	0	(493)	(4,245)
Shareholders of Techstep ASA	(9,262)	(4,702)	(40,455)	(8,081)
Earnings per share in NOK:
Net income after tax	(0.08)	(0.47)	(1,17)	(0,80)
Other comprehensive income	(9,262)	(5,195)	(44,700)	(8,081)

(amounts in NOK 1,000)	Q1 2017	Q1 2016	2016	2015	01.01.2015
Assets
Intangible assets
Deferred tax asset	15	0	857	0	0
Goodwill	379,956	253,378	253,378	253,378	251,700
Customer relations	23,769	32,464	18,116	37,247	59,902
Total intangible assets	403,740	285,842	272,350	290,624	311,602
Tangibles	3,054	3,445	3,159	3,652	4,244
Total tangible and intangible assets	406,794	289,287	275,509	294,276	315,846
Financial assets
Associated companies	0	14,197	13,349	14,195	0
Shares and investments Other non-current assets	30,150 616	4,985 933	27,973 506	4,973 930	7,973 801
Total financial assets
	30,766	20,115	41,829	20,098	8,774
Total non-current assets	437,561	309,402	317,338	314,374	324,620
Inventories	8,549	23,943	9,526	12,137	13,906
Accounts receivable	76,958	104,590	83,250	68,385	62,942
Other receivable	39,939	25,161	16,603	40,700	38,393
Total inventories and receivables	125,446	153,693	109,379	121,221	115,241
Cash and cash equivalents	74,184	6,885	81,692	18,982	17,138
Total current assets	199,630	160,578	191,071	140,203	132,379
Total assets	637,190	469,980	508,409	454,578	456,999
	Q1 2017	Q1 2016	2016	2015	01.01.2015
Equity
Share capital
	139,201	244	102,476	244	32
equity attributable to the	311,199	30,630	132,631	42,081	(147,057)
	450,400	30,874	235,107	42,326	(147,025)
	0	3,240	25,187	0	0
Other equity Total owners of Techstep ASA Non-controlling interests Total equity	450,400	34,114	260,294	42,326	(147,025)
			0	9,901	16,616
	0	8,705	12,656	31,250	60,000
	12,656	31,250
	0	21,251	0	24,848	157,850
	2,025	0	0	308	10,166
Liabilities Deferred tax Non-current interest bearing debt Non-current interest bearing debt to shareholders Other non-current debt Total non-current debt	14,681	61,206	12,656	66,307	244,632
Current interest bearing debt to shareholders	0	149,900	0	0	0

Accounts payable	48,187	23,352	62,050	56,045	50,250
Tax payable	10,775	4,023	9,338	4,299	552
Public taxes, provisions	15,333	8,897	14,007	9,597	12,131
Other current liabilities	29,652	96,587	36,342	57,967	37,215
Total current debt	172,109	374,660	235,458	345,945	359,392
Total liabilities	186,790	435,865	248,114	412,252	604,024
Total equity and liabilities	637,190	469,980	508,409	454,578	456,999
Selected statement of cash flow data
			Q1
(amounts in NOK 1,000)		Q1 2017	2016	2016	2015
Profit before tax		(9,788)	(6,391)	(50,654)	(9,778)
Profit from associated company		(107)	(2)	(157)	444
Amortisation intangible assets		3,709	4,783	18,984	22,655
Depreciation tangible assets		444	207	903	1,349
Technical loss reversed takeover		0	0	21,217	0
Taxes paid		(1,956)	(276)	(4,224)	(552)
Changes in net operation working capital		(8,874)	(6,947)	(16,940)	19,113
A Net cash flow from operation activities		(16,572)	(8,177)	(30,871)	33,231
Investment in subsidiaries		(50,000)	0	0	(16,889)
Investment in financial assets		(100)	(15)	424	(129)
Investment in machinery, inventories		(37)	0	(410)	(757)
B Net cash used on investment activities		(50,137)	(15)	14	(17,775)
Repayment of shareholder loans		0	0	(24,848)	(133,002)
Repayment of other long term debt Change in interest bearing debt		0 (14,375)	(308) (3,597)	(18,902) 72,011	(9,858) (69,956)
New issued equity capital		65,900	0	0	0
Cash from acquisition of Techstep ASA		0	0	10,306	19, 432
Cash from acquisition of Zono AS		0	0	55,000	0
Cash from acquisition of Mytos		4,399	0
Cash from acquisition of Nordialog Asker		3,277	0
C Net cash flow from financing activity		59,201	(3,905)	93,567	(15,383)
Net change in cash and cash equivalents (A+B+C)		(7,508)	(12,097)	62,710	72
Cash and cash equivalents as of January 1		81,692	18,982	18,982	17,138
Selectit Telecom / Data & Tele Øst					1,772
Cash and cash equivalents as of March 31 / December 31		74,184	6,885	81,692	18,982
Significant subsequent	In April 2017, an agreement to acquire the hardware supplier Apro
changes	Tele og Data AS for NOK 15.5 million was completed. Apro is a
	leading supplier of fixed network IP and mobile solutions with

	special expertise in the public sector.
		In April 2017, Techstep Finance was formally established, a joint
		venture with Bridge Capital AS, which will be a key part of
		Techstep's future delivery of MaaS.
		In April 2017, Techstep entered into an agreement with Norsk
		Sykepleierforbund for delivery of mobile-as-a-service of 2650 Apple
		iPads. The agreement includes buy-back of current devices as well
			as financing through Techstep Finance AS.
		In July 2017, Techstep entered into a binding agreement to acquire
		BKE Telecom AB for an aggregated purchase price of SEK 81 million.
B.8	Selected key pro forma	This Information Memorandum contains unaudited pro forma
	financial information	financial information to show how the BKE Acquisition might have
		affected the Group's income statement and balance sheet for the
		twelve months ending 31 December 2016 if the acquisition had
		occurred on 1 January 2016. None of the other acquisitions in 2017
		are included in the adjustments. BDO has issued an assurance
		report on the pro forma financial information as Appendix 2.
	Unaudited pro forma condensed financial information – income statement for the twelve
	months ending 31 December 2016
			BKE Telecom AB	Pro forma
		Techstep ASA 2016	2016	adjustments	Pro forma
	(amounts in NOK 1,000)	Audited	Unaudited	Unaudited	2016 Unaudited
	Revenue	570,526	227,975		798,501
	Other revenue	2,972	(173)		2,799
	Total revenue	573,498	227,082		801,300
	Cost of materials	405,210	181,764		586,974
	Salaries and personnel costs	104,041	23,598		127,639
	Depreciation	903	668		1,571
	Amortisation intangible assets	18,984	0	2,582	21,565
	Other operation costs	51,169	7,426		58,595
	Other cost Total operating expenses	17,511 597,818	0 213,456	(2,582)	17,511 813,855
	Operating profit	(24,319)	14,346	(2,582)	(12,555)
	Financial income and expense	(5,117)	(315)		(5,432)
	Technical loss	(21,217)			(21,217)
	Net financial expense	(26,334)	(315)		(26,649)
	Profit before taxes	(50,654)	14,031		(39,204)
	Income taxes	5,954	(3,325)	568	3,197
	Net income	(44,700)	10,706	(2,014)	(36,007)
	Net income attributable to
	Non-controlling interests	(4,245)		826	(3,420)

Shareholders of Techstep ASA	(40,455)			(32,588)
Earnings per share in NOK:
Net income after tax	(0.65)			(0.48)
Other comprehensive income	(44,700)	10,706	(2,014)	(36,007)
Unaudited pro forma condensed financial information – balance sheet for the twelve
months ending 31 December 2016
			Pro forma
		BKE Telecom AB	adjustments	Pro forma
	Techstep ASA 2016	2016		2016
(amounts in NOK 1,000)	Audited	Unaudited	Unaudited	Unaudited
Assets
Intangible assets
Deferred tax asset	857	0	(857)	0
Goodwill	253,378	0	87,886	341,264
Customer relations	18,116	0	10,326	28,442
Total intangible assets	272,350	0	97,355	369,706
Tangibles	3,159	11,914	(5,422)	9,651
Total tangible and intangible
assets	275,509	11,914	91,934	379,357
Financial assets
Associated companies	13,349	0		13,349
Shares and investments	27,973	0		27,793
Other non-current assets	506	0		506
Total financial assets	41,829	0	0	41,829
Total non-current assets	317,338	11,914	91,934	421,185
Inventories	9,526	4,117		13,643
Accounts receivable	83,250	23,539		106,789
Other receivable	16,603	6,364		22,968
Total inventories and	109,379	34,021		143,400
receivables Cash and cash equivalents	81,692	7,967	(38,227)	51,432
Total current assets	191,071	41,988	(38,227)	194,832
Total assets	508,409	53,902	53,707	616,017
Equity
Share capital	102,476	95	4,635	107,205
Other equity	132,631	16,280	12,456	161,367
Total equity attributable to
		16,375	17,091	268,572
	235,107
the owners of Techstep ASA Non-controlling interests	25,187	0	826	26,013

	Liabilities
	Deferred tax	0	1,184	242	1,426
	Non-current interest bearing
	debt	12,656	7,596		20,253
	Non-current interest bearing
	debt to shareholders	0		14,894	14,894
	Other non-current debt	0			0
	Total non-current debt	12,656	8,781	15,136	36,572
	Current interest bearing debt
	to shareholders	0	0		0
	Current interest bearing
	liabilities	113,721	238		113,959
	Accounts payable	62,050	13,451		75,501
	Tax payable	9,338	4,471		13,808
	Public taxes, provisions	14,007			14,007
	Other current liabilities	36,342	10,587	20,655	67,584
	Total current debt	235,458	28,746	20,655	284,860
	Total liabilities	248,114	37,527	35,791	321,432
	Total equity and liabilities	508,409	53,902	53,707	616,017
B.9	Profit forecast or	Not applicable. No profit forecasts or estimates are included in the
	estimate	Information Memorandum.
B.	Qualifications in audit	Not applicable. There are no qualifications in the audit reports.
10	report
B.	Working capital	The Company is, as of the date of this Information Memorandum,
11		of the opinion that the Group's working capital is sufficient for the
		Group's present requirements in a twelve months perspective as
		from the date of this Information Memorandum.

1.3 Section C – Securities

C.1	Type and class of securities	The Company has one class of Shares in issue and all Shares are equal in all respects.
		The Shares are issued pursuant to the PLCA and registered electronically in the VPS under ISIN NO 0003095309.
		The BKE Consideration Sharesis expected to be issued and delivered to
		the Sellers and become tradeable on Oslo Børs within seven Business
		Days after the BKE Closing.
C.2	Currency	The Shares are issued in NOK and are quoted and traded in NOK.
C.3	Number of	At the date of this Information Memorandum, the Company's share
	shares/ Par value	capital is NOK 141,277,820, divided into 141,277,820 Shares, each with
		a par value of NOK 1.00. The Company holds 1,914 treasury shares.
C.4	Rights attached	The Company has one class of Shares in issue, and in accordance with
		the PLCA, all Shares in that class provide equal rights in the Company.
		Each of the Company's Shares carries one vote.

C.5	Restrictions	The Shares are freely transferable. The Company's current articles of
		association (the "Articles of Association") do not contain any provisions
		imposing limitations on the ownership of the Shares and there are no
		limitations under Norwegian law on the rights of non-residents or
		foreign owners to hold or vote for the Shares.
C.6	Listing and admission to	The Shares are listed on Oslo Børs under ticker code "TECH".
	trading	The listing on Oslo Børs of the BKE Consideration Shares will be made as soon as practically possible after the BKE Consideration Shares have
		been issued in the VPS.
		The Company has not applied for admission to trading of the Shares on
		any other stock exchange or regulated market.
C.7	Dividend policy	Techstep has not established any dividend policy. However, the
		Company's aim and focus is to enhance shareholder value and provide
		an active market in its shares.
		Techstep has historically never declared or paid any dividends on its
		shares and does not anticipate paying any cash dividends for 2017 or
		the next few years. Techstep intends to retain future earnings, if any, to
		finance operations and the expansion of its business. Any future
		determination to pay dividends will depend on the Company's financial condition, results of operations and capital requirements.

1.4 Section D – Risks

D.1	Key risks specific	Key operational risks:
	to industry or the Company	 The Company's business platform was established during 2016, and as it is a relatively new business platform, there is a risk that the Company may not be able to develop the business and generate revenues in line with objectives and expectations;  The mobility solutions and communications industry and the market for sale of related hardware, is highly competitive;  There can be no assurance that the Company will be able to successfully respond to new technological developments and challenges or identify and respond to new market opportunities and new services;  There are risks related to the Company's aim of future growth and
		there can be no assurance that the integration of already acquired and future acquired businesses will be successful;  The Company has entered into transaction documents whereby the Company has issued representations and warranties that could negatively impact the Company's revenue;  Certain Group companies operate under a franchise agreement with Kjedehuset, and the franchise system, concept and documentation are ultimately held and owned by Telenor, including the brands Nordialog and Telehuset. Thus, if Kjedehuset or Telenor decides to amend or terminate any agreements in connection with the franchise system, this could have a material

		adverse effect on the Group's business, revenue and financial condition;  There can be no assurance that the Group will be able to recruit, motivate and retain sufficient numbers of qualified employees in the future, which may have a material adverse effect on the Group's business, financial condition, results of operations or prospects;  The Group's business and organisation is currently undergoing a restructuring and transformation to deliver on a revised strategy, and there are risks and uncertainties concerning the ability to implement such strategies and to complete the restructuring and transformation.
D.3	Key risks specific	Prospective investors should consider, among other factors, the
	to the securities	following risks related to the securities described herein:
		 The market price of the Shares may fluctuate significantly;
		 Future issuances of Shares or other securities in the Company
		could dilute the holdings of shareholders and could materially affect the price of the Shares;
		 Investors may not be able to exercise their voting rights for Shares
		registered in a nominee account;
		 Investors in other jurisdictions than Norway may not be able to
		enforce any judgement obtained in such jurisdiction against the
		Company or its directors or executive officers in Norway;
		 The transfer of the Shares may be subject to restrictions on
		transferability and resale in certain jurisdictions.

2 RISK FACTORS

2.1 General

Investing in Shares in the Company involves a high degree of risk. An investor considering an investment in the Shares should consider carefully the following risk factors, being the principal known risks and uncertainties faced by the Company as of the date hereof that the Company believes are the material risks relevant to an investment in the Shares, as well as the other information contained in this Information Memorandum. Should any of the following risks occur, it could have a material adverse effect on the Company's business, prospects, results of operations, cash flows and financial position, and the price of the Shares may decline, causing investors to lose all or part of their invested capital.

It is not possible to quantify the significance to the Company of each individual risk factor, as each of the risk factors mentioned below may materialize to a greater or lesser degree. The order in which the individual risks are presented below is not intended to provide an indication of the likelihood of their occurrence nor of the severity or significance of individual risks.

An investment in the Shares is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of their investment.

The information is presented as of the date hereof and is subject to change, completion or amendment without notice.

2.2 Operational risks

2.2.1 Business platform under development and competitive situation

Techstep is a business to business ("B2B") solutions and services provider offering mobile hardware and subscriptions, and solutions for mobility and communications. Techstep's business platform was established during 2016, following the divestment of Birdstep Technology AB and the acquisitions of Zono AS and 53.94 % of the shares in Teki Solutions AS ("Teki Solutions"). The business platform was further strengthened by the acquisition of the remaining shares in Teki Solutions and Nordialog Asker AS ("Nordialog Asker"), and the acquisition of Mytos AS ("Mytos"), InfraAdvice Sweden AB ("InfraAdvice") and Apro Tele og Data AS ("Apro") during first quarter 2017. Upon the consummation of the BKE Acquisition (the "BKE Closing"), Techstep will acquire BKE, which will further strengthen business platform of the Company. As this is a relatively new business platform for the Company, there is a risk that the Company is not able to develop the business and generate revenues in line with objectives and expectations.

The mobility solutions and communications industry and the market for sale of related hardware, is highly competitive. The Company's success is dependent on its ability to retain current and attract new customers. There can be no assurance that the Company will be able to respond to existing and new sources of competition. The strong competition in the communications industry and competition between B2B providers may make it difficult for the Company to attract and retain customers, result in lower prices for the Company's services or a loss of market share. Competition may therefore have material adverse effects on the Company's business, financial condition, results of operations or prospects.

2.2.2 Risk related to future development of technology

The mobility solutions and communications industry and the sale of related hardware is characterised by rapid changes in technology, new evolving standards, emerging competition and frequently new product and service introductions. The Company's future business prospects are to a large degree dependent on its ability to meet changing customer preferences, to anticipate and respond to technological changes and to develop effective and competitive relationships with its customers. There can be no assurance that the Company will be able to successfully respond to new technological developments and challenges or identify and respond to new market opportunities and new services. Future technological development could have material adverse effects on the Company's business, financial condition, results of operations or prospects.

In addition, the Company's efforts to respond to technological innovations and competition may require significant financial investments and resources. Furthermore, there can be no assurance that the Company will have the necessary financial and human resources to respond to new technological changes and innovations and emerging competition.

2.2.3 Risk related to implementation of the Company's strategies and strategic alliances

To become a fully integrated digital solutions provider, the strategy for building the solutions platform is through organic growth, acquisitions and partnerships. Organic growth will come from selling and delivering more solutions to existing customers, as well as acquiring new customers. As part of the Group's growth strategy, acquisitions, joint ventures and strategic alliances will be constantly evaluated. There are risks and uncertainties concerning the ability to identify and implement such opportunities and partners. The failure of identifying and implementing such partners may have an adverse effect on the Company's growth, earnings and market capitalization.

2.2.4 Risks related to future growth

The Group may acquire or contract companies, enterprises or assets in the future as a part of its growth strategy. The Group may experience difficulties in developing or integrating these additional assets, businesses and/or employees into its existing operations. Future growth will depend upon a number of factors, both within and outside of the Company's control. It may not be successful in expanding its operations, and any expansion may not be profitable, or may result in losses for the Group.

If the Group's operations continue to expand, the Group may need to increase the number of employees and enhance the scope of operational and financial systems to handle the increased complexity and a potential expansion of the Group's operations. The Company cannot give any assurance that it or the Group companies will be able to attract and retain qualified management and employees for this purpose or that the Group's current operational and financial systems and controls will be adequate as the Group grows.

2.2.5 Dependency on franchise agreement with Kjedehuset

The sale of mobile hardware and subscriptions is mainly carried out through the Company's Nordialog business under Teki Solutions, which has franchise agreements with Kjedehuset AS ("Kjedehuset"). Kjedehuset is the formal party to material customer agreements and enjoys and may exercise rights (and liabilities) under such agreements, and is inter alia entitled to terminate customer agreements, receive notifications, accept amendments to its agreements etc. The Company cannot give any assurance that Kjedehuset will not exercise such rights, and if Kjedehuset exercise these rights it could have material adverse effects on the Company's business, financial condition, results of operations or prospects.

The franchise agreement refers to a license agreement between Telenor and Kjedehuset and the franchise system, concept and documentation are ultimately held and owned by Telenor, including the brands Nordialog and Telehuset. Thus, if Telenor decides to amend or terminate such agreements, this could have a material adverse effect on the Group's business, revenue and financial condition.

The franchise agreements in the Group contain customary provisions regarding confidentiality and exclusivity etc., and no assurance can be given that no such provisions could be breached in such a way that it could have a material adverse effect on the Group's business, revenue and financial condition. The Company is of the opinion that Kjedehuset will not make any decisions having a material adverse effect on the Group's business, revenue and financial condition.

2.2.6 Dependency on key personnel

The Group's success depends in a large part upon its ability to recruit, motivate and retain highly skilled employees with the functional and technical skills and experience necessary to develop and deliver the Group's services. There can be no assurance that the Group will be able to recruit, motivate and retain sufficient numbers of qualified employees in the future. A failure to do so could have a material adverse effect on the Group's business, financial condition, results of operations or prospects.

2.2.7 Risk related to restructuring and transformation to deliver on a revised strategy

The Group's business and organisation is currently undergoing a restructuring and transformation to deliver on a revised strategy. Going forward, Techstep will focus on growing the number of end users, increasing sales per user, growing recurring revenues through sales of solutions and SaaS, and improving cost control per user to increase profit that can be reinvested in the business. There are risks and uncertainties concerning the ability to implement such strategies and to complete the restructuring and transformation. The failure of implementing such strategies and any delays or unexpected costs incurred in the restructuring processes may have a material adverse effect on the Company's business, financial condition, results of operations, or prospects.

2.2.8 Risks related to integration of acquired businesses

The Company's acquisition of Mytos, InfraAdvice, Apro and BKE (following the BKE Closing) will involve integration of businesses that previously operated independently. Such integration processes can be challenging and involve risks. There can be no assurance that the integration will be successful. Any delays, unexpected liabilities or unexpected costs incurred in the integration processes or failure to achieve synergies and other benefits contemplated by acquisition or the incorporation of the companies in the Group may have a material adverse effect on the Company's business, financial condition, results of operations, or prospects.

2.3 Financial risks

2.3.1 Currency risk

The majority of the Company's revenues and costs are in NOK. However, the Company is to some extent exposed to different currencies. Changes in foreign exchange rates, to the extent the Company has not hedged such changes, may have a negative effect on the Company's business, financial condition, results of operations or prospects. In addition, as the Company reports its consolidated results in Norwegian kroners, the value of the Norwegian krone relative to its foreign subsidiaries' functional currencies will affect its consolidated income statement and consolidated statement of financial position when those subsidiaries' operating results are translated into Norwegian kroners for exporting purposes.

2.3.2 Credit risk

The Company has economic exposure against its customers in its ordinary course of business (trade receivables). Any bankruptcy, insolvency or inability by the Company's customers to pay their invoices when they fall due may adversely affect the Company's business, financial condition, results of operations or prospects.

2.3.3 Liquidity risk

The Group is dependent upon having access to long-term funding and other loans and debt facilities to the extent its own cash flow from operations is insufficient to fund its operations and capital expenditures. In turn, the Group must secure and maintain sufficient equity capital to support such borrowing facilities.

There can be no assurance that the Group do not experience net cash flow shortfalls exceeding the Group's available funding sources nor can there be any assurance that the Company or the Group will be able to raise new equity, or arrange new borrowing facilities, on satisfactory terms and in amounts necessary to conduct its ongoing and future operations, should this be required. Any additional equity financing may be dilutive to existing shareholders.

2.3.4 Interest rate risk

The Company currently has certain indebtedness under existing debt facilities which is subject to variable interest rates. Interest rates are influenced by and highly sensitive to many factors, including but not limited to governmental, monetary and tax policies, domestic and international economic and political conditions, and other factors beyond the Company's control. The Company's profitability may be adversely affected during any period of unexpected or rapid increase in interest rates. Changes in interest rates could have a material adverse effect on the Company's business, financial condition, results of operations or prospects.

2.3.5 Tax and VAT risks

Changes in laws and regulations regarding tax and other duties/charges, including but not limited to VAT, may involve new and changed parameters applicable to the Company and taxation of/charges for the Company at higher levels than as of the date hereof. Tax implications of transactions and dispositions of the Company are to some extent based on judgment of applicable laws and regulations pertaining to taxes and duties/charges. It cannot be ruled out that the tax or charges authorities and courts may assess the applicability of taxes and charges to the Company differently from the Company itself. An occurrence of one or more of the aforementioned factors may have a material adverse effect on the Company's business, financial condition, results of operations or prospects.

2.4 Risks relating to the Shares

2.4.1 The price of the Shares may fluctuate significantly, which could cause investors to lose a significant part of their investment

The trading price of the Shares could fluctuate significantly in response to a number of factors beyond the Company's control, including quarterly variations in operating results, adverse business developments, changes in financial estimates and investment recommendations or ratings by securities analysts, announcements by the Company or its competitors of new product and service offerings, significant contracts, acquisitions or strategic relationships, publicity about the Company, its products and services or its competitors, lawsuits against the Company, unforeseen liabilities, changes in management, changes to the regulatory environment in which it operates or general market conditions.

The Consideration Shares and the BKE Consideration Shares are subject to lock-up, resulting in a number of the Company's Shares being subject to trading restrictions for a longer period of time. When the lock-up periods end, such restrictions are removed and the Shares are freely transferable. Any sales of substantial amounts of the Shares in the public market, or the perception that these sales might occur, could lower the market price of the Shares.

In recent years, Oslo Stock Exchange has experienced wide price and volume fluctuations. This volatility has had a significant impact on the market price of securities issued by many companies. Those changes may occur without regard to the operating performance of these companies.

2.4.2 The Company has not paid dividends in the past and may not become in a position to pay dividends in the future as the Company's ability to pay dividends is dependent on the availability of distributable reserves

Norwegian law provides that any declaration of dividends must be adopted by the shareholders at the Company's general meeting of shareholders (the "General Meeting"). Dividends may only be declared to the extent that the Company has distributable funds and the Company's Board finds such a declaration to be prudent in consideration of the size, nature, scope and risks associated with the Company's operations and the need to strengthen its liquidity and financial position. As the Company's ability to pay dividends is dependent on the availability of distributable reserves, it is, among other things, dependent upon receipt of dividends and other distributions of value from its subsidiaries and companies in which the Company may invest.

As a general rule, the General Meeting may not declare higher dividends than the Board has proposed or approved. If, for any reason, the General Meeting does not declare dividends in accordance with the above, a shareholder will, as a general rule, have no claim in respect of such non-payment, and the Company will, as a general rule, have no obligation to pay any dividend in respect of the relevant period.

Pursuant to the Company's dividend policy, dividends are only expected to be paid if certain conditions described in Section 12.2.1 "Dividend Policy" are fulfilled. In addition, the Company may choose not, or may be unable, to pay dividends in future years. The amount of dividends paid by the Company, if any, for a given financial period, will depend on, among other things, the Company's future operating results, cash flows, financial position, capital requirements, the sufficiency of its distributable reserves, the ability of the Company's subsidiaries to pay dividends to the Company, credit terms, general economic conditions, legal restrictions (as set out in Section 12.3.2 "Certain aspects of Norwegian law") and other factors that the Company may deem to be significant from time to time

2.4.3 Future sales, or the possibility for future sales, including by existing shareholders, of substantial number of shares may affect the Shares' market price

The market price of the Shares could decline as a result of sales of a large number of Shares in the market on the perception that such sales could occur, or any sale of Shares by any of the Company's existing shareholders from time to time. Such sales, or the possibility that such sales may occur, might also make it more difficult for the Company to issue or sell equity securities in the future at a time and at a price it deems appropriate.

2.4.4 Future issuances of Shares or other securities may dilute the holdings of shareholders and could materially affect the price of the Shares

It is possible that the Company may in the future decide to offer additional Shares or other equitybased securities through directed offerings without pre-emptive rights for existing holders. Any such additional offering could reduce the proportionate ownership and voting interests of holders of Shares, as well as the earnings per Share and the net asset value per Share.

2.4.5 Pre-emptive rights to secure and pay for Shares in any additional issuance may not be available to U.S. or other shareholders

Under Norwegian law, unless otherwise resolved at a general meeting, existing shareholders have pre-emptive rights to participate on the basis of their existing share ownership in the issuance of any new shares for cash consideration. Shareholders in the United States, however, may be unable to exercise any such rights to subscribe for new shares unless a registration statement under the U.S. Securities Act is in effect in respect of such rights and shares or an exemption from the registration requirements under the U.S. Securities Act is available. Shareholders in other jurisdictions outside Norway may be similarly affected if the rights and the new shares being offered have not been registered with, or approved by, the relevant authorities in such jurisdiction. The Company is under no obligation to file a registration statement under the U.S. Securities Act or seek similar approvals under the laws of any other jurisdiction outside Norway in respect of any such rights and shares and doing so in the future may be impractical and costly. To the extent that the Company's shareholders are not able to exercise their rights to subscribe for new shares, their proportional interests in the Company will be reduced.

2.4.6 Investors may not be able to exercise their voting rights for Shares registered in a nominee account

Beneficial owners of the Shares that are registered in a nominee account (such as through brokers, dealers or other third parties) may not be able to vote for such Shares unless their ownership is reregistered in their names with the VPS prior to the general meetings. The Company can provide no assurances that beneficial owners of the Shares will receive the notice of a general meeting in time to instruct their nominees to either effect a re-registration of their Shares or otherwise vote for their Shares in the manner desired by such beneficial owners.

2.4.7 Investors may be unable to recover losses in civil proceedings in jurisdictions other than Norway

The Company is a public limited liability company organised under the laws of Norway. The majority of the members of the Board and Management reside in Norway. As a result, it may not be possible for investors to effect service of process in other jurisdictions upon such persons or the Company, to enforce against such persons or the Company judgments obtained in non-Norwegian courts, or to enforce judgments on such persons or the Company in other jurisdictions.

2.4.8 Norwegian law may limit shareholders' ability to bring an action against the Company

The rights of holders of the Shares are governed by Norwegian law and by the Articles of Association. These rights may differ from the rights of shareholders in other jurisdictions. In particular, Norwegian law limits the circumstances under which shareholders of Norwegian companies may bring derivative actions. For instance, under Norwegian law, any action brought by the Company in respect of wrongful acts committed against the Company will be prioritised over actions brought by shareholders claiming compensation in respect of such acts. In addition, it may be difficult to prevail in a claim against the Company under, or to enforce liabilities predicated upon, securities laws in other jurisdictions.

2.4.9 The transfer of Shares is subject to restrictions under the securities laws of the United States and other jurisdictions

The Shares have not been registered under the U.S. Securities Act or any U.S. state securities laws or any other jurisdiction outside of Norway and are not expected to be registered in the future. As such, the Shares may not be offered or sold except pursuant to an exemption from the registration requirements of the Securities Act and applicable securities laws. In addition, there can be no assurances that shareholders residing or domiciled in the United States will be able to participate in future capital increases or rights offerings.

2.4.10 Shareholders outside of Norway are subject to exchange rate risk

The Shares are priced in NOK, and any future payments of dividends on the Shares will be denominated in NOK. Accordingly, investors outside Norway may be subject to adverse movements in the NOK against their local currency, as the foreign currency equivalent of any dividends paid on the Shares or of the price received in connection with any sale of the Shares could be materially adversely affected.

2.4.11 Market interest rates may influence the price of the Shares

One of the factors that may influence the price of the Shares is its annual dividend yield as compared to yields on other financial instruments. Thus, an increase in market interest rates will result in higher yields on other financial instruments, which could adversely affect the price of the Shares.

2.5 Risks relating to the BKE Acquisition

2.5.1 This Information Memorandum contains unaudited pro forma financial information

The unaudited pro forma financial information included in this Information Memorandum has been prepared solely to show what the significant effects of the BKE Acquisition might have been had the BKE Acquisition occurred at an earlier date and does not purport to present the results of operations or financial of the Group, nor should it be used as the basis of projections of the results or operations or financial condition of the Group for any future period or date.

This Information Memorandum includes unaudited pro forma condensed consolidated financial information for the Group as of and for the year ended 31 December 2016. Although the unaudited pro forma financial information is based on estimates and assumptions based on current circumstances believed to be reasonable, actual results could have materially differed from those presented herein. There is a greater degree of uncertainty associated with pro forma figures than with actual reported results. The unaudited pro forma financial information has been prepared for illustrative purposes only and, because of its nature, addresses a hypothetical situation and, therefore, does not purport to present the results of operations of the Group as if the BKE Acquisition had occurred at the commencement of the period being presented, or the financial condition of the Group as of the date being presented, nor should it be used as the basis of projections of the results of operations for the Group for any future period or the financial condition of the Group for any date in the future.

2.5.2 The BKE Acquisition has not been consummated at the date of this Information Memorandum

Under the BKE SPA, the BKE Closing is conditional upon satisfaction of certain conditions that are beyond the control of the Company, hence the BKE Acquisition may not be consummated and transaction costs will have been incurred for the Group regardless of whether the BKE Acquisition is actually consummated.

If the BKE Acquisition is not consummated, transaction costs, including costs of advisors and use of key management personnel's time and attention, will have been incurred without the expected benefits and at the expense of other business opportunities.

In addition, there will be no realisation of any of the expected benefits of having completed the BKE Acquisition and failure to complete the BKE Acquisition could result in a negative perception by the stock market of the Company and result in a decline of the market value of the Company's Shares.

If any of the above risks materialise, it could negatively affect the business, results of operation and financial condition of the Group.

3 STATEMENT OF RESPONSIBILITY

The Information Memorandum has been prepared by the Board of Directors in Techstep ASA (the "Board" or the "Board of Directors") to provide information in connection with the BKE Acquisition, as described herein.

The Board accepts responsibility for the information contained in this Information Memorandum and hereby declares that, having taken all reasonable care to ensure that such is the case, the information contained in this Information Memorandum is, to the best of their knowledge, in accordance with the facts and contains no omissions likely to affect its import.

Oslo, 14 August 2017

The Board of Techstep ASA

Einar J. Greve Chairman

Kristian Lundkvist Board member

Stein Erik Moe Board member

Ingrid Leisner Board member Camilla Magnus Board member

4 GENERAL INFORMATION

4.1 Third party information

In certain Sections of this Information Memorandum, information sourced from third parties has been reproduced.

In such cases, the source of the information is identified. Such third party information has been accurately reproduced, and as far as the Company is aware and is able to ascertain from information published by that relevant third party, no facts have been omitted which would render the reproduced information inaccurate or misleading.

4.2 Forward looking statements

This Information Memorandum contains forward-looking statements ("Forward Looking Statements") relating to the Company's business and the sectors in which it operates. Forward Looking Statements include all statements that are not historical facts, and can be identified by words such as (what follows are examples without excluding words having the same meaning): "anticipates", "believes", "expects", "intends", "may", "projects", "should", or the negatives of these terms or similar expressions. These statements appear in a number of places in this Information Memorandum, in particular in Section 2 "Risk factors", Section 8 "Market and industry overview for Techstep " and Section 10 "Operating and financial information " and include statements regarding the Company's management's intent, belief or current expectations with respect to, among other things:

• strategies for the Company's services, segments and business;
• global and regional economic conditions;
• sales volumes, price levels, costs and margins;
• competition and actions by competitors and others affecting the global or regional market of the Company;
• the Company's planned capacity and utilization rates;
• fluctuations in foreign exchange rates, interest rates, earnings, cash flows, dividends and other expected financial results and conditions;
• cash requirements and use of available cash;
• financing plans;
• anticipated capital spending;
• growth opportunities;
• development, production, commercialization and acceptance of new services and technologies;
• environmental and other regulatory matters;
• legal proceedings; and
• intellectual property.

No Forward Looking Statements contained in this Information Memorandum should be relied upon as predictions of future events. No assurance can be given that the expectations expressed in these Forward Looking Statements will prove to be correct. Actual results could differ materially from expectations expressed in the Forward Looking Statements if one or more of the underlying assumptions or expectations proves to be inaccurate or is unrealised.

5 Presentation of BKE Telecom AB

5.1 Overview

BKE TeleCom AB was founded in 1983 and is a Swedish private liability company incorporated under the laws of Sweden with company registration number 556465-1551.

BKE's registered office is:

BKE TeleCom AB Ramsgatan 2b 653 41 Karlstad Sweden Telephone: + 46 54 15 15 05 Website: www.bke.se

BKE is one of the leading providers of business telecommunication equipment and services in Sweden. The product and services offering comprises hardware communication equipment, cloud Private Branch Exchange ("PBX"), operator services and other services for the public sector and corporates in Sweden. The hardware offering comprises, e.g. mobile, fixed, wireless and conference phones, headsets, tablets and other associated communication equipment, from, e.g. Apple, Dell, Jabra, HTC, Huawei, LG, Microsoft, Samsung and Sony. BKE offers an industry leading cloud-based (Unified Communication as a Service ("UCaaS") PBX solution, where users may choose to communicate via mobile, fixed, wireless phones, web or computer applications. BKE is one of few market players in Sweden offering cloud-based PBXs integrated with all the largest Swedish operators, i.e. Tele2, Telenor, Telia and 3, and also Telavox.

In the period 2011/12 to 2015/16, BKE increased revenue from SEK 66.3 million to SEK 239.6 million. BKE's fiscal year starts on May 1 and ends on 30 April, and the company reports according to Swedish GAAP. The high revenue growth is mainly attributable to the unique market offering and the successful accomplishment of obtaining major customers within the public sector, in addition to new customers within the corporate sector. BKE has exhibited very strong gross margins in the same period, reaching an average gross margin of 25.9%. The adjusted EBITDA has increased from SEK 3.0 million to SEK 18.0 million in the same period.

As of the date of this Information Memorandum, BKE employs 43 full-time employees.

5.2 Business overview

BKE has a premium supplier base, supplying high-end quality products and services. BKE engages with the leading industry suppliers, who share the BKE's requirements of high quality. BKE has four main areas which sources income; hardware offering, cloud-based PBX system, PBX through operators and sale of services.

5.2.1 Hardware

BKE offers all kinds of telephone communication equipment from world leading brands for the public sector, corporates and consumers. The offering comprises, e.g. mobile, fixed, wireless and conference phones, headsets, tablets and other associated communication equipment, from e.g. Apple, Dell, Jabra, HTC, Huawei, LG, Microsoft, Samsung and Sony. Smartphones constitute the largest share of sales.

In the past, sales of hardware comprised exclusively of sourcing and selling from A to B. Today, it's another situation where BKE provides all kinds of necessary related services, including configuration, programming, assembly, installation, etc. For each delivery, BKE provides all of the right information, with marked boxes of users, etc., but also provides access to an online web system, with information about orders, invoices, subscriptions, phone and other equipment for each of the customers' employees. These kinds of services are charged for, and hence, BKE can deliver major volumes and maintain high profit margins.

Furthermore, BKE offers hardware lifecycle management for both public sector customers and corporates, which implies taking full control of the customers' hardware equipment throughout its product lifetime. BKE helps its customers with, e.g. purchasing models, user support and environmental retrievals of hardware, which simplifies and saves period for each specific product. After the leasing period, BKE retrieves the hardware which is sold on for recycling, and new products are provided to the customers. BKE establishes 4-year framework agreements with the customers for providing all these kind of services, and holds currently a total of approximately 1,500 active contracts.

5.2.2 PBX

BKE offers a cloud-based (UCaaS) PBX system, where users may choose to communicate via mobile, fixed, wireless phones, web or computer applications. The business telephone exchange system which is offered is Uno Telefoni's cloud-based telephony solution, which is built on a platform from Mitel. The agreement with Uno Telefoni was signed in 2013 and BKE has, since, provided cloud PBXs with direct customer contracts. Prior to this, BKE provided Uno Telefoni's cloud PBXs as a reseller and received provision revenue.

BKE's offering of cloud PBXs is based on the number of licenses, which is usually equated with the number of employees, plus equipment for conference rooms or other locations were a phone is needed. BKE receives recurring revenue deriving from a subscription-based revenue model, where the majority of the customers sign 36-month contracts, with monthly pre-paid payments. BKE currently has around 300 customers, representing approximately 4,000 users of their cloud PBX solution.

Prior to the launch of the cloud PBX offering in 2013, BKE provided on premise PBXs from Mitel and, still, has operating contracts with ten customers, representing approximately 4,000 users. These corporate customers are expected to switch to cloud PBXs in coming years when the current contracts expire. This comprises a significant potential for BKE which could result in obtaining an attractive portfolio of new additional subscription revenue. This would approximately double BKE's recurring revenue as per today. However, there can be no assurance that these corporate customers will choose cloud-based PBX system offered by BKE. The last on premise PBXs were distributed in 2014/15 and service for the on premise PBXs has been provided from 2014/15, which is included in sales of on premise PBX. However, on premise PBXs are still offered to its customers.

The customers requiring more comprehensive solutions, additional technology and functions, and who may wish to customize the telephony functions, can select several additional features. BKE purchases these add-on features, e.g. response services, contact centre, SMS subscription, fax services, etc., and rebrand them into BKE. BKE's plethora of additional software features stands out in comparison with the operators' offering, especially when it comes to the flexibility of customized solutions.

BKE can deliver up to half a million cloud PBX users and handles everything from planning to installation and training. Customers purchasing cloud PBXs from BKE range from around 10 to 1,000 employees. In 2015/16 85 new customers selected BKE's cloud solution with a total order value of approximately SEK 9 million. The average customer size grew in 2015/16, which is a clear sign that an increasing number of major corporates choose BKE.

5.2.3 Operators

BKE is one of very few market players in Sweden offering fully integrated cloud PBXs with all major Swedish operators, i.e. Tele2, Telenor, Telia and 3, but also Telavox. This means that BKE can offer the best operator services at all times. As an operator independent player, BKE helps its customers to negotiate the best agreements and services, and these agreements are tailored to each specific customer. Hence, BKE offers its customers the most cost efficient solution from a business perspective, down to the level of users. BKE's customers can easily switch operator contracts and, still, be able to keep BKE's hardware infrastructure, enabling a strong position for its customers.

BKE receives kickbacks for each newly signed contract. Kickback revenues vary between points in time and between operators, but BKE receives around SEK 800 – 4,000 per subscription. These contracts are renegotiated every 24th month when the contract expires, which provides "semirecurring" revenues generated from repeated new sales.

Since January 2017, BKE also offers its own operator services and has already secured around 370 subscriptions. BKE will, still, market themselves as operator independent but are, however, pushing its customers to choose BKE's own operator services in order to capture a larger share of revenues (recurring) and profits.

Being an operator, BKE now has a significant opportunity to provide UCaaS solutions for the public sector and, therefore, participate in new attractive UCaaS procurements. UCaaS procurements within the public sector require that the provider can arrange for direct customer contracts for all categories, and the major operators have had these contracts in the past. In addition, BKE can contract with smaller corporates (50 – 500 full time employees) where the operators have used their advantages as an operator.

5.2.4 Services

Sales of services include configuration, programming, assembly, installation and maintenance of, e.g. wired and wireless networks, fixed and mobile phones and other types of related hardware equipment.

BKE has built-up an entire workflow in the last 10 years with procedures, processes, flows and smart solutions that customers are willing to pay for. Hence, BKE can undertake quick deliveries of over

5,000 products within 24 hours, which is an important customer preference factor, in addition, to price in this market.

Through BKE's well-developed organization for services, BKE assembles, pre-installs customer specific settings and configurations, etc., which is highly appreciated by the customers and is a strong contribution to BKE's low churn. BKE is unique on the market in having a service organization at this level.

Services also comprise several types of installations in cars and trucks, e.g. of alcolocks, electronic driver's log, taximeter, GPS navigation systems, communication radios, vehicle hands-frees, etc. The services within alcolocks comprise of assembly, calibration and other services which is completed at BKE.

BKE handles the full process of installation, project management, training and support. BKE can easily install the cloud PBX solutions into the existing hardware infrastructure at the customers' site, through downloading applications.

5.3 Key financial figures

BKE's fiscal year starts on May 1 and ends on 30 April, and the company reports according to Swedish GAAP.

5.3.1 Income statement

(amounts in SEK million)	2016/17	2015/16	2014/15
Revenue	189.1	239.6	166.6
COGS	(143.6)	(191.8)	(126.6)
Gross profit	45.5	47.9	39.9
Operating expenses	(7.5)	(7.4)	(6.2)
Personnel costs	(23.5)	(23.0)	(20.1)
EBITDA	14.5	17.5	13.7
Depreciation	(0.7)	(0.7)	(0.7)
EBIT	13.8	17.3	13.4

5.3.2 Balance sheet

(amounts in SEK million)	2016/17	2015/16	2014/15
Immaterial assets	0.7	-	-
Lands and buildings	10.6	10.9	10.1
Equipment and tools	0.8	0.8	0.8
Total fixed assets	12.1	11.6	11.0
Inventory	2.9	3.7	3.8
Accounts receivable	18.2	35.6	11.3
Receivables from group company	2.9	4.9	4.9

Current tax assets	0.0	0.0	0.0
Other receivables	0.0	0.0	0.3
Prepaid expenses and accrued income	2.3	6.6	0.8
Current assets	26.3	50.8	21.0
Cash and bank	11.7	12.1	11.9
Total assets	50.1	74.6	43.9
Restricted equity	0.8	0.1	0.1
Non-restricted equity	15.3	18.7	12.7
Equity	16.1	18.9	12.8
Tax allocation reserves	5.7	6.7	7.7
Untaxed reserves	5.7	6.7	7.7
Liabilities to credit institutions	8.0	8.2	8.4
Long term liabilities	8.0	8.2	8.4
Liabilities to credit institutions	0.3	0.3	0.3
Accounts payable	10.0	31.1	9.0
Income tax liabilities	3.9	4.0	1.2
Other current liabilities	3.2	2.2	2.1
Accrued expenses and deferred income	3.0	3.2	2.5
Current liabilities	20.3	40.8	15.0
Total equity and liabilities	50.1	74.6	43.9

6 THE BKE ACQUISITION

6.1 Overview

Through the BKE Acquisition, the Company will acquire 100% of the shares in BKE. The purchase price payable at the BKE Closing of SEK 81 million will be settled with SEK 38.5 million in cash, SEK 15 million in seller credit and SEK 27.5 million in Techstep shares, to be issued at a price of NOK 5.70 per Techstep share. The shares will be issued under Techstep's current board authorization to issue shares approved at the extraordinary general meeting held on 28 February 2017.

6.2 Background and reason for the BKE Acquisition

Techstep has established itself as a Nordic enabler of the digital workplace and is experiencing a push from customers to be able to service them with mobile phones, laptops and tablets across the Nordics. The acquisition of BKE provides Techstep with a scalable setup to act as a cross border onestop-shop.

Moreover, BKE offers a wide and solid customer base already asking for the enterprise mobility solutions which is the core of Techstep current offering. The combination makes a foundation for increased solution sales to BKEs current customers. In addition, the acquisition of BKE provide Techstep with a Swedish hardware, logistics and distribution platform which will be an integrated part of Techstep's unique Mobile as a Service (MaaS) concept. MaaS allows Techstep's customer to purchase the combination of hardware and solutions on a monthly payment OPEX-model.

6.3 The Sellers

Thomas Gustavsson (100% owner of TRG Innovation AB), Peter Gustavsson (100% owner of PRG Förvaltning AB) and Daniel Råd (100% owner of Bondfire AB) (the Sellers) are all Swedish residents. Thomas Gustavsson, Peter Gustavsson and Daniel are also the current management team of BKE.

Name of seller	Address	Shares in BKE TeleCom AB	Percentage
TRG Innovation AB	Frykmans Väg 47, 653 45 Karlstd, Sweden	334	33.4%
PRG Förvaltning AB	Frykmans Väg 56, 653 45 Karlstd, Sweden	333	33.3%
Bondfire AB	Galoppstigen 35, 653 48 Karlstd, Sweden	333	33.3%
Total		1,000	100.0%

6.4 Description of the BKE Acquisition

Through the BKE Acquisition, the Company will acquire 100% of the shares in BKE which will be settled with SEK 38.5 million in cash, SEK 15 million in seller credit and SEK 27.5 million in Techstep Shares (corresponding to 4,729,893 Shares, the BKE Consideration Shares), to be issued at a price NOK 5.70 per Techstep Share. The BKE Consideration Shares is expected to be delivered to the Sellers within seven business days from the date of the BKE Closing.

The BKE Acquisition is governed by the BKE SPA, whereby the Sellers have granted customary representation and warranties to the Company, and accepted non-solicitation and non-competition clauses for a period of 3 years following the BKE Closing.

The BKE Closing is conditional upon the following:

• (i) BKE receiving consent from Skandinaviska Enskilda Banken AB (publ) to the BKE Acquisition under its financing agreements, and that the Company's current financing with Skandinaviska Enskilda Banken AB (publ) may continue on the existing terms and conditions following the BKE Closing;
• (ii) BKE receiving consent to the BKE Acquisition from certain contractual counterparties;
• (iii) There being no breaches of the Sellers' warranties and representations that may entail a claim, individually or in the aggregate, by the Company exceeding SEK 8,000,000; and
• (iv) A dividend payment from BKE having been decided upon and executed.

The BKE Consideration Shares in the Company will upon issuance carry the same rights and will rank pari passu with the existing issued Shares of the Company. The BKE Consideration Shares will be listed on the Oslo Stock Exchange under the Company's ordinary ISIN as soon as possible after their issuance.

The Sellers have accepted a limited lock-up on the BKE Consideration Shares until August 2018 , where up to 1/3 of each Sellers portion of the BKE Consideration Shares may be sold, an additional 1/3 are locked-up until February 2019 and 1/3 of each Sellers remaining BKE Consideration Shares are locked-up until August 2019.

Except for the Sellers' right to receive the BKE Consideration Shares, the BKE Acquisition does not involve any specific rights to the benefit of the members of the Board of Directors or the executive managements of Techstep or BKE respectively, nor is any such agreements expected to be entered.

6.5 Expenses

The expenses related to the BKE Acquisition are estimated to NOK 2 million.

6.6 Issuance of the BKE Consideration

The BKE Consideration Shares will be issued within seven business days after the BKE Closing (the BKE Closing is expected to be held on 31 August 2017) through an authorisation to the Board to issue new Shares granted on 27 April 2017.

7 Presentation of Techstep

7.1 Overview

The Company was founded in 1996 as a private limited liability company under the name Birdstep Technology AS, later Birdstep Technology ASA. In 2016, it changed its name to Techstep ASA. The Company's commercial name is Techstep. The Company is organized as a public limited liability company in accordance with the PLCA with organisation number 977 037 093. The Company is listed on Oslo Børs with ticker "TECH".

The Company's registered office is:

Techstep ASA Brynsveien 3 0667 Oslo Norway Telephone: +47 909 91 618 Website: http://www.techstep.no

Prior to the sale of Birdstep AB in 2016, the Company's main business was to develop and distribute "Heterogeneous Network" (Techstep's "HetNet") optimization solutions, allowing operators and original equipment manufacturers to provide, analyse, select, control and commercialise Wi-Fi and cellular networks to deliver experience continuity to their customers. All such business activities, including customer contracts, product portfolio, technology, intellectual property rights and most of the employees, was transferred to Smith Micro through the sale of Birdstep AB.

7.1.1 Company overview

Through several transactions outlined in this Section 7 "Presentation of Techstep" in this Information Memorandum, Techstep has developed into a B2B solutions and services provider offering mobile hardware and subscriptions, solutions for mobility and communications and related software-as-a-service ("SaaS") products.

The mobile hardware and subscriptions business of Techstep is referred to as the "Hardware and subscriptions segment" in this Information Memorandum, while the mobility software and solutions segment is referred to as the "Solutions segment".

Figure 1: Overview of Techstep segments and offerings per segment.

The below illustration shows a simplified overview of Techstep and its subsidiaries and the segments these subsidiaries operates in, following the transactions outlined in this Section 7 "Presentation of Techstep" of this Information Memorandum.

Figure 2: Simplified Techstep company structure post the transactions outlined in Sections 6 "The BKE Acquisition" and 7 "Presentation OF TECHSTEP" of this Information Memorandum. Note that Techstep also has an 8.25% stake in Kjedehuset (Hardware partnership). Note: "FTE" stands for Full-Time Equivalent employees.

7.1.2 Key financial figures

Techstep had total revenues for 2016 of NOK 573.5 million and total revenues for 2015 of NOK 630.3 million. Earnings Before Interests, Taxes, Depreciation and Amortization ("EBITDA") ended negative at NOK 4.4 million in 2016, while EBITDA was positive in 2015 at NOK 24.4 million. The negative development in EBITDA is in part explained by transaction costs and one-offs of NOK 17.5 million being included in operation expenses in 2016. Revenue, EBITDA adjusted for transaction costs and one-offs ("adjusted EBITDA"), Earnings Before Interests, Taxes and Amortization ("EBITA") adjusted for transaction costs and one-offs ("adjusted EBITA"), and Earnings Before Interests and Taxes ("EBIT") adjusted for transaction costs and one-offs ("adjusted EBIT"), are outlined in the below table.

(amounts in NOK 1,000)	2016	2015
Revenue	573,498	630,325
Adjusted EBITDA	13,078	24,443
Adjusted EBITA	12,175	23,093
Adjusted EBIT	(6,808)	437

Figure 3: Overview of adjusted figures

Adjusted financial figures should be read in connection with Section 10 "Operating and financial information " in this Information Memorandum, as well as the annual financial statement for 2016 and the interim report for first quarter 2017, which is incorporated by reference to this Information Memorandum, see Section 16.2 "Incorporated by reference". Note also that the Teki Gruppen Transaction for accounting purposes has been carried out as a reversed takeover.

7.2 Hardware and subscription

The Hardware and subscriptions segment consists of sale of mobile solutions, mobile devices and related hardware and mobile subscription packages for business customers, mainly through the Nordialog brand in eastern Norway. This division targets companies varying in size from 50 to over 7,000 employees.

Hardware sales are to a large extent capital expenditure, or investments, for Techstep's customers, but the number of inquiries from customers who want to buy through leasing (operational expenditure) is increasing and Techstep is in the process of establishing its own tailormade offering through is newly established joint venture, Techstep Finance. This new offering, hardware-asservice, is expected to be one of Techsteps core offerings going forward.

Kjedehuset is a sales and distribution organisation of mobile units and communication solutions. Kjedehuset has three main areas of operation:

• 1. Franchise of B2B sale of mobile device hardware and Telenor subscriptions through the Nordialog and Telehuset brands
• 1. Import and distribution of mobile devices through its wholly owned subsidiary Telefast AS
• 1. After-market services through the wholly owned subsidiary Conmodo AS

Nordialog Oslo receives commissions and bonuses from Kjedehuset and Telenor from hardware and mobile subscription sales.

Kjedehuset is owned 49% by Telenor Norge AS and 51% by the owners of its independent franchisees. Combined, Techstep has an 8.25% stake in Kjedehuset (Hardware partnership). As described in Section 7.8 "Legal structure", Kjedehuset is partly owned through Zono AS. Note that there is no business activity in Zono AS, and accordingly, Zono AS has no function in relation to the operations of Kjedehuset.

In addition to Nordialog Oslo, hardware is sold by Apro. Apro was established in 1973 and delivers communication solutions with focus on mobile communications hardware and mobile subscriptions. The company also provides consulting services for large clients, customer support and maintenance.

Apro is focused on the public sector and frame agreements in the public sector represented around 60-70% of 2016 revenue. The geographical focus of Apro is Buskerud, Telemark and Vestfold.

In total, the Hardware and subscriptions segment stood for approximately 84% of Techstep revenues in 2016. With respect to profitability, the Hardware and subscriptions segment has historically had lower gross margins compared to the Solutions business area. The majority of hardware sales are Apple and Samsung devices.

The fact that Techstep is already delivering the mobile devices (phones, pads and pc's) makes it natural for the customers to request services linked to the hardware to be delivered by Techstep. Some of these services are well known in the market place and rolled out to a great extent, while others are just now being introduced.

7.3 Solutions

The Solutions business comprises development of customized solutions and products, mainly through the in-house advisor and solution architect SmartWorks AS. This business area operates on a project basis, and offers both small and large deliveries within the mobility and communication space. Offering includes design, integration, operations and customer support of services in areas such as security & mobility, authentication, authorisation & accounting ("AAA"), servers & networks and video communication (see Section 7.5 "Strategy" for examples of recent project deliveries).

In addition to SmartWorks, solutions are delivered through Mytos and InfraAdvice.

Mytos is a SaaS company that among other products deliver a Telecom Expense Management ("TEM") solution, providing Norwegian companies with an overview of their total mobile costs and simplified routines for reporting to Norwegian tax authorities. In the view of Techstep, the four functionalities included in Mytos' service provides for a user-friendly and efficient overview of all relevant issues related to a company's mobile costs:

• Mobile cost control full overview of the employees' mobile costs
• Policy for mobile phone use guidelines for employees and management
• Mobile tax automatic salary deduction
• Cost allocation within the company

Mytos TEM offering is based on proprietary software and the revenue model of the company is based on monthly license fees per user and service fees, building a base for recurring revenue. Mytos had a user base of approximately 122,000 users and 600 customers per year end 2016.

InfraAdvice is a Swedish EMM specialist mainly based in Stockholm, but also with offices in Luleå and Strängnäs. The company covers a broad range of phases and aspects of enterprise mobility, both remote and on site: strategy, policy, project management, test, architecture, security, installation (on premise and cloud), configuration, integration, implementation, maintenance & support.

InfraAdvice has a pan-Nordic customer portfolio of mainly large corporates and municipalities and has developed partnerships with amongst other VMware End User Computing, AirWatch by VMware, Apple Consulting Partner, Samsung SEAP, Oracle Mobile Cloud and PhishMe.

Suppliers to the Solutions segment range from IT infrastructure and operations companies, to vertical-specific providers of niche technology.

Revenues from the Solutions segment comprised approximately 16% of Techstep revenues for 2016. Gross margin in the Solutions segment has historically been higher than in the Hardware and subscription segment.

7.4 Customers and value chain

With a customer base of approximately 3,600 companies with 220,000 end users in Teki Solution, approximately 600 customers and 122.000 end users in Mytos, approximately 550 customers and 25,000 end users in Apro and approximately 80 customers and 100,000 end users in InfraAdvice, Techstep has an extensive reach within the Norwegian and Swedish business segment and public sector¹ . The top revenue generating customers include large companies with international reach, and Techstep has partnership agreements with well-known hardware and software providers (see figure 4).

Techstep sales take place through multiple channels:

• Direct sales through any of Techstep's subsidiaries, with Nordialog Oslo, Smartworks SmartWorks Nordic Group, Mytos, Apro, InfraAdvice or Teki Solutions as contractual party.
• Through Telenor, with Telenor as contractual party to the customer contract and Teki Solutions or Smartworks as a subcontractor.
• Through Kjedehuset, with Kjedehuset as contractual party to the customer contract and Teki Solutions or Smartworks as a subcontractor.
• Through Mytos, Apro, InfraAdvice or BKE with Mytos, Apro, InfraAdvice and BKE, as the contractual party to the customer contract.
• Through other partners.

The customer's needs and requests are the main driver for all above sale channels.

¹ Note that the number of customers and end users may to some degree overlap and that Mytos has approximately 122.000 end users, of which 46.000 are through Nordialog and the remaining are direct customers of Mytos.

Figure 4: A visual explanation of Teki Solutions value chain and top 20 customers as per end of July 2016² .

7.5 Strategy

As described above in this Section 7 "Presentation of Techstep" and Section 8.2 "Key market drivers", mobile devices are playing an increasingly important role in people's daily lives. At the same time, the mobility and communications market is undergoing disruptive shifts where the value proposition is changing from telecoms' connectivity towards a fragmented ecosystem of digital solutions and service providers. Techstep's strategy is to build on its background in mobile technology to establish a leading mobility and communications service, software and products provider.

On the revenue side, Techstep's strategy can be summarised in five key steps across the two axes of increasing the number of end users and increasing average revenue per user:

• A. Address further organic opportunities to extend customer & end user base. One of Nordialog Oslo's and Apro's key value attributes are considered to be their close relationship with a wide range of larger and medium sized companies, with in aggregate above 1 million employees. This provides a foundation that Techstep plans to create further leverage through an increase of average revenue per user ("ARPU"). The primary reason for the increase in ARPU will come from selling solutions and services to these customers. Techstep will target opportunities to increase the customer and end user base further through organic growth by acquiring new customers and increasing its share of wallet within the existing customer base.
• B. Development of new solutions and services concepts. Techstep customers are to an increasing extent demanding additional mobility and communication services and solutions, which in addition to hardware will contribute to increase the ARPU³ . Within Techstep, such

² Source: Executive Management.

³ Source: Techstep and Teki Solutions management.

services and solutions are primarily provided within the Solutions business area. Techstep continuously invests in developing its offering and delivery capacity and currently has a range of solutions under development that will be launched in 2017.

• C. Serving a larger share of the customer base with services from the Solutions segment. The majority of Techstep's customers do not use the full extent of the Solutions offering or similar platforms provided by other companies⁴ . There should therefore be ample opportunity to increase revenues by offering solutions and services to more of its customers. This has been the primary driver for growth in revenue from the Solutions segment, from NOK 20 million in 2013 to NOK 48 million in 2015, to NOK 75 million in 2016. Solutions bundling and packaging of these as products will make it easier for customers to buy and the sales force to sell.
• D. Acquire niche service and solution players ("vertical acquisitions"). The Company sees a large number of niche providers of services and solutions, some of which are used as subsuppliers today. Techstep will target acquisition opportunities that can add further ARPU and/or margins to its offering (not limited to current sub-suppliers).
• E. Structural growth through mergers and acquisitions of competitors and peers to strengthen position within specific geographies and/or segments ("horizontal acquisitions"). Following completion of the transactions outlined in this Section 7 "Presentation of Techstep" in this Information Memorandum, Techstep believes that there are several additional structural opportunities. In addition to creating a foundation to leverage ARPU increase, Techstep believes there to be extensive efficiency gains from cost synergies in such opportunities.

A vital part of this growth strategy is to bundle hardware and solutions into one unified product, mobility-as-a-service, typically paid for by the customers on a monthly basis. This will drive a conversion towards recurring revenue for Techstep and, in Techstep managements opinion, create a product range easy to sell and efficient in building a long-term relationship with Techstep customers.

⁴ Source: Executive Management

Figure 5: Figure illustrating the Company's revenue drivers and strategy along two axes. (X-axis: # of end users, Y-axis: Average revenue per user).

Techstep has proven successful in the first three points, as evident in some of their previous product and solutions deliveries. Listed below are a few customer examples:

• A recent delivery to an airline company completely changed the way the pilots operate. Before Teki Solutions' involvement, every pilot had to carry with them a "flight bag" containing all papers needed before take-off weighing around 44 kg in total. Teki Solutions, in collaboration with Telenor, was able to digitalize the operations and now 1,800 pilots get the same information on Ipads, creating significant cost savings for the airline company. The Ipads are fitted with XenMobile and up to 23 different applications, like weather forecasts, flight manuals and fuel order systems which made the "flight bag" obsolete, and the airline company is now unable to fly without the solution. The delivery was so successful that Teki Solutions are currently developing a similar solution for the cabin crew, amounting to roughly 3,600 new users.
• An important feature that customers emphasize is security, this was of great importance when Teki Solutions won the bid to deliver an EMM solution to Statkraft. Working closely with the client, Teki Solutions was able to deliver a solution that offered 3,000 employees secure access from their tablets or phones.
• Meny has delivered Kiosk tablets for 200 different shops in Norway, locking the tablet for the users minimizing support need, ease of use and simplicity to register service status like safe food/allergy lists, HSE registration and deviation management, and ensuring food

quality. The number of tablets are going to increase as Meny has concluded that that tablets are more cost efficient than a PC client.

Further to the aforementioned revenue growth strategy initiatives, Techstep believes there to be efficiency gain potential resulting in reductions of operational expenditures. Such gains are expected be realized through an increased focus on self service, in part through channelling resources from low-growth towards high-growth areas and in part through cost reductions.

7.6 History and development

The table below provides an overview of the Company's and the Group's major historical milestones:

1996	Founded in Oslo, Norway, under the name Birdstep Technology AS
1997	Nordialog Oslo was founded
2000	Corporate name changed from Birdstep Technology AS to Birdstep Technology ASA
2000	Acquisition of Advanced Communication Technology
2001	Acquired former Raima assets from Centura Software
	Alice Systems was created as a spin-off from Northstream
2002	Listed on Oslo Børs
2004	IP Zone Technology sold to Aptilo Networks AB
2005	Acquired Alice Systems AB
2006	Established VoiceRoaming Technology AS, a JV with TeleVenture AS
2007	Acquired Service Factory AB, Secgo Software Oy, Aramova Inc. and VoiceRoaming Technology AS. During 2007, Aramova Inc. changed its name to BTSF
2008	Transition from Product/Project Developer to Software Vendor
2010	Announced 3G network offload for operators
2010-2011	In the latter part of 2010 and Q1 2011, Techstep divested the non-core assets Raima, Service Factory (Orbyte) and its 32% holding in Aptilo
2012	Teki Solutions was established. Teki Solutions acquires a number of companies, among others, Nordialog Oslo AS and other companies under the Nordialog brand.
2013-2014	Teki Solutions acquires all shares in SmartWorks AS
2015	Sale of the Finnish subsidiary Birdstep Technology Oy to Elektrobit Technologies Oy for EUR 1.9 million (on gross basis)
2015	Teki Solutions acquires SelectIT AS
08.03.2016	Agreement to sell Birdstep AB to Smith Micro for USD 2 million
08.03.2016	Raised NOK 7.48 million (on gross basis) in a private placement towards Middelborg Invest AS
28.04.2016	Resolution to change corporate name from Birdstep Technology ASA to Techstep ASA, which name change was registered on 1 June 2016
01.07.2016	Agreement (subject to completion) to acquire 100% of the shares in Zono AS (Zono Transaction)
01.07.2016	Agreement in principle (subject to completion) to acquire 53.94% of the shares in Teki

Year/Date Event

	Solutions AS from Teki Gruppen AS (Teki Gruppen Transaction)
26.07.2016	Raised NOK 1.49 million in subsequent offering
15.09. 2016	Completion of agreement to acquire 100% of shares in Zono AS (Zono Transaction)
07.11.2016	Completion of agreement to acquire 53.94% of the shares in Teki Solutions AS (Teki Gruppen Transaction)
Dec. 2016	Birdstep Technology San Francisco, Inc. was liquidated
01.02.2017	Agreement (subject to completion) to acquire 100% of the shares in Mytos
02.02.2017	Raised approx. NOK 100 million (on gross basis) in a fully underwritten private placement
08.02.2017	Agreement to acquire the remaining 21.84 per cent of Teki Solutions and the remaining 50 per cent of Nordialog Asker. The transaction was closed 28 February 2017
13.03.2017	Techstep announces acquisition of InfraAdvice Sweden AB, a Swedish EMM specialist
15.03.2017	Bridge Capital AS and Techstep established the joint venture company Techstep Finance
21.03.2017	Agreement (subject to completion) to acquire 100% of the shares in Apro Tele and Data AS
03.04.2017	Completion of acquisition of InfraAdvice Sweden AB
03.04.2017	Completion of acquisition of Apro Tele and Data AS
03.07.2017	Agreement (subject to completion) to acquire 100% of the shares in BKE TeleCom AB

7.7 Material contracts

The table below provides a summary of material contracts outside the ordinary course of business
for the last two years prior to the date of this Information Memorandum:

Year/Date	Party	Description
2015	Elektrobit	Sale of the Finnish subsidiary Birdstep Technology Oy to
	Technologies Oy	Elektrobit Technologies Oy for EUR 1.9 million (on gross
		basis).
2015	Birdstep AB	Techstep entered into an asset transfer agreement,
		whereby all assets and liability related to the Smart Mobile
		Data business segment, including but not limited to
		customer contracts and IP rights, were transferred from the
		Company to Birdstep AB.
08.03.2016	Smith Micro	The share purchase agreement regarding the sale of
		Birdstep AB contains obligations, covenants and warranties
		on the part of the Company, which are customary for
		transactions of this kind.
01.07.2016	Zono Holding AS	Techstep entered into an agreement with Zono Holding AS
		for the Zono Transaction, whereby Techstep acquired 24.22
		% of the shares in Teki Solutions. The Zono Transaction was
		completed in September 2016.
01.07.2016	Teki Gruppen AS	Techstep entered into an agreement in principle to acquire
		53.94% of the shares in Teki Solutions in exchange for
		Shares to corresponding to NOK 129.23 million. Definitive

		terms were agreed on 5 October 2016 and the Teki
		Gruppen Transaction was completed on 7 November 2016.
01.02.2017	Mytos Systems AS	Agreement to acquire 100% of the shares in Mytos.
		Purchase price payable at closing of NOK 120.0 million were
		settled with NOK 50 million in cash and NOK 70 million in
		Shares, corresponding to 11,666,667 Shares.
08.02.2017	Minority	Agreement to acquire the remaining 21.84% of the shares in
	shareholders of	Teki Solutions.
	Teki Solutions
08.02.2017	Shareholders of	Agreement to acquire the remaining 50% of the shares in
	Nordialog Asker	Nordialog Asker.
13.03.2017	SysTown	Agreement to acquire 100% of the shares in InfraAdvice AB
	International AB	for an aggregated purchase price of SEK 18.5 million.
21.03.2017	Shareholders of	Agreement to acquire 100% of the shares in Apro Tele and
	Apro Tele and	Data AS for an aggregated purchase price of NOK 15.5
	Data AS	million,.
03.07.2017	Shareholders of	Agreement (subject to completion) to acquire 100% of the
	BKE TeleCom AB	shares in BKE. Purchase price payable at closing of SEK 81
		million were settled with SEK 38.5 million in cash, SEK 15
		million in seller credit and SEK 27.5 million in shares,
		corresponding to 4,729,893 Shares, as further described in
		Section 6 "The BKE Acquisition".

Other than contracts above, the Group has entered into the following contracts which include provisions on obligations or entitlements which is material to the Group:

Year/Date	Party	Description
2009	Kjedehuset	Franchise agreements between Kjedehuset and entities within Teki Solutions, displayed under the brand Nordialog, and the license agreement between Telenor and Kjedehuset, on which the franchise agreements are based, are deemed material due to brand recognition and increased sale through Nordialog.
2011	Telering	Franchise agreement between Telering and Apro which is deemed material due to Telering's franchises in the B2B segment and brand recognition.
January 2017	Bridge Capital AS and Techstep	Agreement to establish Techstep Finance AS, a joint venture between Techstep and Bridge Capital AS, an experienced financing operating partner. Techstep Finance AS will be a vital part in Techstep's future delivery of MaaS. Techstep owns 50% of the shares in Techstep Finance AS and has an option to acquire the remaining shares on certain conditions.
March 2017	(Undisclosed)	SmartWorks, a company wholly owned by Techstep, entered into an agreement with an undisclosed international service company regarding deliverance, management and related support of slightly above 10,000 AirWatch licenses. The contract also includes advisory related to mobility and mobile device management.

April 2017	Norsk	On 24 April, Nordialog Oslo AS, a company owned by
	Sykepleierforbund	Techstep, entered into an agreement with Norsk
		Sykepleierforbund for delivery of mobile-as-a-service of
		2,650 Apple iPads. The agreement includes buy-back of
		current devices as well as financing through Techstep
		Finance AS, and a newly developed mobile asset
		management solution provided by Mytos. Training of
		resources, support and handling of privacy issues are also
		part of the contract.
June 2017	Norwegian Tax	On 27 June, Techstep announced that Nordialog Oslo has,
	Administration	through an agreement with Kjedehuset, been chosen to
		supply the Norwegian Tax Administration with mobile
		phones, tablet devices, conference phones and related
		equipment, as well as advisory services and support. The
		framework agreement has an estimated value of NOK 20
		million.

Apart from the above, the Company has not entered into any contracts of material importance for the Company's business, and all contracts are entered into in the ordinary course of business.

7.8 Legal structure

The legal structure of Techstep ASA effective from completion of the BKE Acquisition and the ongoing mergers between Zono AS and Teki Solutions and between Nordialog Oslo AS, Buskerud Mobil AS and Nordialog Asker AS and is outlined below (the "Mergers"). The Mergers are expected to be effective from September 2017.

The below list gives an overview of the registered business address of the various Techstep subsidiaries:

• Zono AS: Storgaten 30-32, 3126 Tønsberg
• Teki Solutions: Brynsveien 3, 0667 Oslo
• Mytos AS: Billingstadsletta 19A, 1396 Billingstad
• Apro Tele og Data AS: Fokserødveien 29, 3241 Sandefjord
• Nordialog Oslo AS: Tvetenveien 6, 0661 Oslo
• Smartworks AS: Brynsveien 3, 0667 Oslo
• SWN Group Sweden AB: Svartviksslingan 110, 167 39 Bromma, Sweden
• Netconnect AS: Tvetenveien 6, 0661 Oslo
• Buskerud Mobil AS: Bjørnstjerne Bjørnsons gate 110, 3044 Drammen
• Nordialog Asker AS: Drengsrudbekken 10, 1383 Asker
• InfraAdvice Sweden AB: Bryggargatan 6B, 111 21 Stockholm, Sweden
• Apro Oslo AS: Heggelibakken 2, 0375 Oslo
• Techstep Finance AS: Brynsveien 3, 0667 Oslo
• BKE Telecom AB: Ramgatan 2B, 653 41 Karlstad, Sweden

The business address of Kjedehuset AS is Lysaker Torg 6, 1366 Lysaker, Akershus. All of the above mentioned companies are incorporated under the laws of Norway, except for BKE Telecom AB, SWN Group AB and InfraAdvice Sweden AB which are incorporated under the laws of Sweden.

7.9 Property, plants and equipment

The Company does not own any real property and there are no significant property, plant or equipment items ordered at the date of this Information Memorandum. Techstep does not have any plans or obligations to make significant future investments in property, plant or equipment.

The Group's activities do not pollute the environment. All suppliers are well reputed companies. Techstep takes for its basis that its suppliers are operating in compliance with the applicable regulatory framework and paying due respect to the norms of the various stakeholders in their business. None of the processes in use by the suppliers are known to be of particular hazard to staff or the environment.

Techstep leases administrative office space located in Oslo, Norway of approximately 70 square metres. The facilities serve as the general corporate and operational headquarters and the Company does not see any environmental issues that may affect the Company's utilisation of the office premises.

7.10 Major shareholders

Name	Country	Type of account	No. of Shares	Total holding %
DATUM AS	Norway	Comp.	30,079,142	21.29 %
MIDDELBORG INVEST AS	Norway	Comp.	28,066,931	19.87 %
PALOS AS	Norway	Comp.	11,666,667	8.26 %
SKARESTRAND INVEST AS	Norway	Comp.	7,513,372	5.32 %
DOVRAN INVEST AS	Norway	Comp.	3,763,372	2.66 %

The table below shows the top 20 registered shareholders as of 14 August 2017.

JYST INVEST AS	Norway	Comp.	3,763,372	2.66 %
TINDE INDUSTRIER AS	Norway	Comp.	3,763,372	2.66 %
CIPRIANO AS	Norway	Comp.	3,651,375	2.58 %
ZONO HOLDING AS	Norway	Comp.	3,000,007	2.12 %
SÅ&HØSTE AS	Norway	Comp.	2,925,936	2.07 %
TIGERSTADEN AS	Norway	Comp.	2,779,182	1.97 %
TVENGE TORSTEIN INGVALD	Norway	Priv.	2,664,185	1.89 %
NOMO HOLDING AS	Norway	Comp.	1,946,253	1.38 %
NORDIALOG ENSJØ AS	Norway	Comp.	1,946,253	1.38 %
VERDIPAPIRFONDET DNB SMB	Norway	Comp.	1,872,933	1.33 %
ARCTIC FUNDS PLC	Ireland	Comp.	1,871,434	1.32 %
UNIFIED AS	Norway	Comp.	1,849,457	1.31 %
RAKNES HOLDING AS	Norway	Comp.	1,649,348	1.17 %
SONGA TRADING INC	Norway	Comp.	1,438,596	1.02 %
VINTERSTUA AS	Norway	Comp.	1,200,000	0.85 %
Total top 20			117,411,187	83.11 %
Total number of shares			141,277,820	100.00 %

As of 14 August 2017, and so far as is known to the Company, the following shareholders, directly or indirectly, are interested in 5% or more of the share capital of the Company (which constitute a notifiable holding under the Norwegian Securities Trading Act):

• Middelborg Invest AS, a company owned by Board Member Kristian Lundkvist.
• Datum AS: Datum AS is controlled by Jan Haudemann-Andersen
• Palos AS: Palos AS is controlled by the persons that sold Mytos to the Company in the Mytos Acquisition. The name of the selling entity Mytos Systems AS changed its name from Mytos Systems AS to Palos AS on 28 February 2017.
• Skarestrand Invest AS: Skarestrand Invest AS is controlled by former Techstep board member Svein Ove Brekke.

Note that shareholders may have several accounts and/or their Shares and BKE Consideration Shares may be held by one or more nominee(s). Except for the treasury shares held by the Company, all shares in the Company have equal voting rights, with each Share carrying the right to one vote at the General Meeting.

The Company is not aware of any shareholder agreements or other similar understandings among its shareholders that may result in a change in control of the Company. To the best of the Company's knowledge and belief, no shareholder, or group of shareholders, controls the Company, directly or indirectly.

8 Market and industry overview for Techstep

The following Section gives an overview of the market which Techstep operates in.

As outlined in Section 7 "Presentation of Techstep", Techstep operates in the two business segments; Hardware and subscriptions and Solutions.

8.1 Techstep market position

The Hardware segment operates under the Nordialog brand of Teki Solutions, and through Apro. Other franchisees of the Nordialog brand include Ucom AS, and Kjedehuset also has smaller, independent franchisees under the Telehuset brand which primarily focus on the small and medium company size segment.

The Solutions market, where Techstep operates through SmartWorks, Mytos and InfraAdvice, consists of an ecosystem of fragmented providers. This market is less mature than the Hardware segment. Competitors include larger suppliers of communication and mobility solutions and services, but also small, niche businesses.

Marketing of Nordialog products and services are to a large extent driven by Kjedehuset AS under the franchise agreement with Nordialog Oslo. Direct mail and newsletters are also sent directly to customers. Apro similarly is under the Telering franchise, but do their marketing to a greater extent without help from the franchise. SmartWorks, InfraAdvice and Mytos use mostly owned channels and social media, as well as customer conferences to market their solutions.

In the view of Techstep management, Techstep has an attractive market position, based on the Company's position as a hardware provider that also delivers specialised software solutions. These are solutions to make it possible for organisations to maximize the value of the hardware by supporting digitisation and automation processes. The market position is outlined in figure 6 below.

8.2 Key market drivers

Mobility management is a key concern for companies, ~80% have already initiated some degree of mobility solutions. However, as illustrated in figure 7, only 5% are fully succeeding. In the view of Techstep management, this support further growth in the market for Techstep hardware and solutions offering.

Figure 7: Figure illustrating European companies' level of use of mobility solutions.⁵

Equally, as illustrated in figure 8, numbers from Statistisk Sentralbyrå in 2015 state that 80% of all employees require some mobility in the work life. Making these employees able to perform their work without having to stop their work to use a computer to report or receive critical information, could make their workday considerably more efficient. As the number of employees requiring at least some mobility, is considerably higher than number of current Norwegian business subscriptions (as illustrated in Figure 8 below), Techstep believes the B2B telecom market will experience accelerated growth rates as sector specific mobile solutions to an increasing extent become available within manufacturing, construction, transportation and healthcare.

	Industry sector	Mobility	# people
$80\%$	Agriculture, forestry and fishing	砍	58 753
	Mining and quarrying	咏	59 994
"More than 80% of the Norwegian	Manufacture	娇	215 521
	Electricity, water supply, sewerage, waste management	砕	29 639
workforce requires some mobility or higher"	Construction	学	207 492
	Wholesale and retail trade		349 128
$\mathbf{K}$ 1,678,000 491,000 419,000	Transportation and storage	娇	138 614
	Accommodation and food service activities	娇	86 117
	Information and communication	모	88 199
	Financial and insurance activities	₽	46 839
	Real estate, professional, scientific and technical activities	ı۸ı	161247
	Administrative and support service activities	모	120 678
"People do not put their phone down then go find a	Public adm., defense, soc. security	₽	163 153
desktop to do something. They use their phone." -Paul Cousineau, director of	Education		209 533
	Human health and social work activities	x	532 683
mobile shopping at Amazon.com	Other service activities		99 002
	Unspecified		21112
	$\parallel$ = some mobility $\mathbf{R}^{\mathbf{r}}$ = high mobility		$=$ little mobility

Figure 8: Expected development in the enterprise mobility services market⁶

⁵ Source: Arthur D. Little Digital transformation study 2015

⁶ Source: Statistisk Sentralbyrå; Employed persons 15-74 years by sector and industrial division (2015).

8.3 The hardware and subscription segment

The total market size for Kjedehuset's franchisees is estimated at approximately NOK 1.5 billion (see figure 9), of which Techstep, through Teki Solutions, has a market share of approximately 40%. The customers include larger companies, and the demand is driven by these companies' need for hardware and subscriptions for mobile devices.

Figure 9: Figure illustrating the total Nordialog and Telehuset market size from 2013-2015. Measured in BNOK⁷ . Teki Solutions and Ucom are primarily operating under the Nordialog brand.

This business segment has seen a decline in recent years (see figure 10), and this has also resulted in lower commissions and bonuses from Kjedehuset and Telenor. However, Teki Solutions has since 2013 increased its market share from approximately 31% to approximately 40% in 2015 as a share of the addressable Norwegian market within the franchise agreement with Kjedehuset.

⁷ Source: Executive Management

Figure 10: Figure illustrating number of mobile devices sold in Norway. Measured in thousand units. 8

The overall B2B subscriptions market is estimated at 1.3 million subscriptions, compared to the B2C which is estimated at 4.4 million subscriptions (see figure 11). Telenor provides subscriptions to 0.8 million users in the B2B market in Norway⁹ , and based on Nordialog Oslo's user base of 0.2 million, the market share of Nordialog Oslo is estimated at approximately 27%.

The Norwegian mobile telecom has experienced slow growth in recent years, but the market rose in 2015 to NOK 16.8 billion. Subscription revenues are shifting from variable fees from minutes and texts to fixed fee subscriptions¹⁰. The overall proportion of fixed fee has increased from 17% in 2005 to 64% in 2015¹¹. The information is summarised in figure 12.

http://www.nkom.no/marked/ekomtjenester/statistikk/det-norske-ekommarkedet-

⁸ Source: Elektronikkbransjen, Elektronikkbransjen Mobil totalomsetning tabell 2015,

http://www.elektronikkbransjen.no/Presse/Omsetningstall-og-presentasjoner

⁹ Source: Pareto Securities, http://paretosec.com/upload/files/20160525%20AINMT%20investment%20case.pdf

¹⁰ Source: Norwegian Communications Authority, Det norske ekommarkedet 2015

rapporter/_attachment/23817?_ts=154c3d72b6d. See figure 30.

¹¹ Source: Norwegian Communications Authority, Det norske ekommarkedet 2015

http://www.nkom.no/marked/ekomtjenester/statistikk/det-norske-ekommarkedet-

rapporter/_attachment/23817?_ts=154c3d72b6d. See figure 30.

Figure 11: Figure illustrating the distribution of mobile subscriptions in Norway 2015. Measured in thousand subscriptions¹²

Figure 12: Bar chart illustrating the historical cost development for Telecom subscription in Norway. Measured in BNOK

¹² Source: Pareto Securities, AINMT Holdings AB – High upside from low frequencies,

http://paretosec.com/upload/files/20160525%20AINMT%20investment%20case.pdf

The overall number of devices sold in Norway peaked in 2013 of approximately 3.4 million units, but has been on the decline since and only 2.5 million devices were sold during 2015 (see figure 10). This development is likely due to a high smartphone penetration in Norway and a reduced rate of innovation in new generations meaning that the sale of new devices is increasingly driven by replacement of devices that have exceeded their useful life. Figures from Kjedehuset in Q1 2016 indicate a decline in the overall hardware sales¹³ .

For Techstep and Teki Solutions, the overall implications of these market developments have been increased demand for mobility and communication products, solutions and services as the companies are working closely with their customers to adapt to the changing market conditions.

8.4 The solutions segment

Key drivers of the size of the addressable market in the in the solutions segment are sales volumes of mobile devices and the extent of mobile use. The graph in figure 13 details recent developments of these drivers. The Norwegian telecom market is undergoing disruptive shifts in response to changes in customer and end-user demands.

Figure 13: Figure illustrating the number of unique connection sessions in Norway. Measured in relative proportion between PC and mobile devices¹⁴

¹³ Source: Executive Management.

¹⁴ Source: TNS Gallup,

http://www.tnslistene.no/?list_id=12&list_type=4&week=21&year=2016&report=day&metric=avrch_000

Techstep delivers a wide range of solutions to their customers to a varying degree depending upon customer needs. Examples of such solutions are:

• Hardware and device management with Service Level Agreement ("SLA")
• 2 nd and 3rd line support
• Enterprise mobility management solutions
• Provisioning and single sign on
• Security solutions
• Licenses (3rd party software)
• Application deployment and management
• API integration
• Advisory
• Switch board and customer contact centres
• Telecom expense management.

IT use is increasingly shifting from stationary devices to mobile devices, as seen in the increase in internet traffic from mobile devices from ~41% in the beginning of 2014 to ~60% in March 2016 in Norway (see figure 13).

From June 2014, the majority of internet traffic in Norway has come from mobile devices and the share has continued to grow, while PC's are on the decline. The installed user base of smartphones in Norway has increased over the years, and the smartphone penetration rate has grown from approximately 57% in 2011¹⁵ to 85% of the total population in 2015¹⁶. The tablet penetration rate in 2015 was estimated to 75%¹⁷. In addition, the proportion of Norwegians who connect to the internet on an average day through their mobile device has grown from 7% in 2009 to 68% in 2015¹⁸ . Norwegians are also more connected while on the move, and approximately 77% of the population has connected while outside their home or workplace¹⁹. The average data usage has experienced exponential growth in the Nordic countries, and all are above the global average (see figure 14). The average data usage in Norway on mobile devices has increased at a compound annualised growth rate of 59% in the last five years until 2015²⁰ .

¹⁵ Source: TNS Gallup and MedieNorge, Andel som har smarttelefon,

http://www.medienorge.uib.no/statistikk/medium/ikt/379

¹⁶ Source: SSB, Norsk mediebarometer 2015, http://www.ssb.no/kultur-og-fritid/artikler-ogpublikasjoner/_attachment/262805?_ts=154710d88a8

¹⁷ Source: SSB, Norsk mediebarometer 2015, http://www.ssb.no/kultur-og-fritid/artikler-ogpublikasjoner/_attachment/262805?_ts=154710d88a8

¹⁸ Source: SSB and MedieNorge, Bruk av Internett på mobiltelefon en gjennomsnittsdag,

http://medienorge.uib.no/statistikk/aspekt/tilgang-og-bruk/383

¹⁹ Source: SSB, Bruk av IKT I husholdningene 2015 2. kvartal

https://www.ssb.no/teknologi-og-innovasjon/statistikker/ikthus/aar/2015-10-01#content

²⁰ Source: Norwegian Communications Authority,

http://www.nkom.no/aktuelt/nyheter/_attachment/23819?_ts=154c3d7b075

Figure 14: Figure illustrating average GB use per subscription per year in the Nordic countries and a global average. 21 22 23 24 25

The increase in average data usage and the shift from stationary devices to mobile devices, may in the Company's opinion indicate a higher demand of the Company's solutions. As figure 14 illustrates, an increase in average data usage are taking place in countries where the Group currently has its operations, i.e. Norway and Sweden.

The strong growth in the use of mobile devices and related services is further underlined by the strong growth expected in the market for enterprise mobility services in Norway and Sweden, as seen in figure 15.

²¹Source: Swedish Post and Telecom Authority staticsportal, Figures data Nordic

http://statistik.pts.se/PTSnordic/NordicBaltic2014/

²² Source: OECD, OECD Communications Outlook 2013, http://www.oecd-

ilibrary.org/docserver/download/9313021e.pdf?expires=1465246089&id=id&accname=ocid177226&checksum=6F7E113B 1A859965F233EEC15E6AE52D. See table 3.5

²³ Source: OECD, OECD Digital Economy Outlook 2015, http://www.oecd.org/internet/oecd-digital-economy-outlook-2015- 9789264232440-en.htm. See figure 2.31

²⁴ Source: Cisco, Cisco Visual Networking Index: Forecast and Methdology, 2014-2019 White Paper,

http://www.cisco.com/c/en/us/solutions/collateral/service-provider/ip-ngn-ip-next-generation-

network/white_paper_c11-481360.html. See Table 1

²⁵ Source: GSMA Intelligence, The Mobile Economy 2016,

https://www.gsmaintelligence.com/research/?file=97928efe09cdba2864cdcf1ad1a2f58c&download. See page 9

Figure 15: Expected development in the enterprise mobility services market²⁶

8.5 Dependence on patents and licenses

Except as set forth below, the Company is not dependent on patents or licenses, industrial, commercial or financial contracts or new manufacturing processes.

As described in Section 7.5 B) in this Information Memorandum, Techstep is continuously investing in developing its offering and delivery capacity. Spending resources on developing its offering is in the view of the Company a part of normal operations. These investments have not been capitalized on as per December 2016.

As of the date of this Information Memorandum, and in order to carry on the business conducted, the new business platform, which Teki Solutions represents, is dependent on franchise agreements between Kjedehuset and entities within Teki Solutions, displayed under the brand Nordialog. The agreement refers to a license agreement between Telenor and Kjedehuset and the franchise system, concept and documentation are ultimately held and owned by Telenor. Telenor is also the owner of the brands Nordialog and Telehuset, which forms part of the franchise concept. The franchise agreement between Kjedehuset and entities within Teki Solutions expires in 2019, unless prolonged. Whether the franchise agreement will be prolonged depend, inter alia, on the willingness of the parties and owners, the future development of the franchise system and concept, and on Kjedehuset's ability to prolong current supplier agreements.

8.6 Competitors

Within Kjedehuset, the other main group of franchisees within the Nordialog brand includes Ucom AS. Ucom AS serves similar customers as Techstep's Hardware segment, but at a different

²⁶ Source: Technavio (2015) Global Enterprise Mobility Services Market 2014-2019; Gartner (2016) Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2013-2019. Estimations: (Global EMS market size) x (Norwegian share of global market based on Gartner (2016) NOK/USD = 7.5. Managed mobility services includes: MDM services, hosted unified communications. Consulting and integration mobility services: Services related to adopting a new infrastructure or integrating with the existing model, to improve mobility in the workforce such as email and voicemail

geography; Western and Central Norway. Further, a number of independent franchisees within the Telehuset brand mainly serve the small and medium sized business segment.

Phonero AS has gained market share as a telecom provider in the B2B space in recent years as a virtual operator with related services and solutions that to some extent overlap with Techstep's Solution segment. Atea ASA has entered into the EMM space in addition to mobile and IT hardware and services. With some overlap in offering, Atea ASA also competes with Techstep in the B2B segment.

Telia Norge AS has own distribution channels throughout Norway targeting both the B2B and B2C market, however their relative B2B market share remains low and total Telia subscriptions in Norway are approximately ¼ of that of Telenor (see Section 8 "Market and industry overview for Techstep "). Telering has presence throughout Norway and has subscription distribution agreements with both Telenor and Telia. The brand is focused both on the B2B and B2C subscription market. With the acquisition of Apro, Techstep acquired one of Telering's franchises in the B2B segment, strengthening its position in this segment. There are however other Telering franchises focused on the B2B segment competing with Techstep in the Hardware segment.

The B2C competitive landscape includes large electronics retailers such as Elkjøp Norge AS, Euronics Norge AS and Expert AS and to some extent overlaps with Techstep Solution segments addressable market within the small and medium sized businesses in the B2B market.

9 BOARD OF DIRECTORS, MANAGEMENT AND EMPLOYEES

9.1 General

The General Meeting is the Company's supreme governing body, and all shareholders are guaranteed participation and the opportunity to exercise their rights. The Annual General Meeting has adopted the Articles of Association.

The Board has the ultimate responsibility for the management of the Company and for supervising its day-to-day business, and activities in general. The main responsibility is to determine the Company's overall vision, goal and strategy. The Board also ensures that the activities are soundly organised and keeps itself informed about the financial situation of the Company, and ensures that the management handles risks faced by the Company in an appropriate way.

The Management is responsible for the day-to-day management of the Group's operations in accordance with Norwegian law and instructions set out by the Board. Among other responsibilities, the Group's Chief Executive Officer, or CEO, is responsible for keeping the Group's accounts in accordance with prevailing Norwegian legislation and regulations and for managing the Group's assets in a responsible manner. In addition, the CEO must according to Norwegian law brief the Board about the Group's activities, financial position and operating results at least once a month.

9.2 Board of Directors

9.2.1 Overview of the members of the Board

Pursuant to the Company's Articles of Association section 5, the Board shall have 3-7 members, as decided by the General Meeting. The members of the Board are, in accordance with the PLCA, elected by the General Meeting for service periods of two years and may be re-elected. As of the date of this Information Memorandum, the Board consists of 5 members. All current Board members were appointed during 2016 and re-elected by the annual General Meeting on 27 April 2017. The Board consists of 2 women and 3 men, and hence meet the gender diversity requirements pursuant to Norwegian legislation.

The table below sets out the remuneration to the Company's current members of the Board for the financial year ended 31 December 2016:

Name	Position	Served since	Current term 27 expires	Remuneration paid in 2016 (NOK)
Einar J. Greve	Chairman	01.11.2016	2019	83,000
Ingrid Leisner	Board Member	29.01.2016	2019	117,000
Camilla Magnus	Board Member	01.11.2016	2019	42,000
Kristian Lundkvist	Board Member	01.11.2016	2019	42,000
Stein Erik Moe	Board Member	01.11.2016	2019	42,000

The table below sets out the remuneration to the Company's current members of the Board for the period from the annual general meeting 2017 to the annual general meeting 2018:

Name	Position	Served since	Current term 28 expires	Yearly remuneration (NOK)
Einar J. Greve	Chairman	01.11.2016	2019	500,000
Ingrid Leisner	Board Member	29.01.2016	2019	300,000
Camilla Magnus	Board Member	01.11.2016	2019	285,000
Kristian Lundkvist	Board Member	01.11.2016	2019	250,000
Stein Erik Moe	Board Member	01.11.2016	2019	250,000

9.2.2 Brief biographies of the Board Members

Set out below are brief biographies of the members of the Board of Techstep as of the date of this Information Memorandum. The biographies includes their relevant management expertise and experience, and an indication of any significant principal activities performed by the Board Members outside the Company and names of companies and partnerships of which a Board Member is or has been a member of the administrative, management or supervisory bodies or partner at any time in the previous 5 years, not included subsidiaries of the Company.

Einar J. Greve (born 1960), Chairman of the Board

Mr. Greve has served the Board since November 2016.

Mr. Greve works as a strategic advisor at Cipriano AS. Mr. Greve has previously worked as partner at Wikborg Rein & Co and as partner of Arctic Securities ASA. Mr. Greve holds various positions in listed and unlisted companies, including Weifa ASA (Chairman), Vistin Pharma ASA (board member),

²⁷ In accordance with the PLCA, the terms expire at the annual General Meeting 2019

²⁸ In accordance with the PLCA, the terms expire at the annual General Meeting 2019

Elliptic Labs (board member), Future Group (board member) and Hæhre and Isachsen Holding AS (board member). During the previous five years, Mr. Greve has hold positions in Bionor Pharma ASA (Chairman) Solon Eiendom ASA (board member) and Axactor AB (Chairman). He holds a degree in law (cand.jur) from the University of Oslo. Mr. Greve is a Norwegian citizen and maintains a business address at Cipriano AS, Munkedamsveien 45F, PO Box 1566 Vika, 0118 Oslo, Norway.

Ingrid E. Leisner (born 1968), Board Member

Ms. Leisner has served the Board since January 2016.

Ms. Leisner's directorships over the last five years include current board positions in Hunter Group ASA, Vistin Pharma ASA, Maritime and Merchant Bank ASA, Spectrum ASA, Vettakollen Tennisklubb AS (Chairman), Duo Jag AS (deputy) and Larsen Eiendom AS (deputy). Previously, she has held a board position in Fortuna Mare AS, Bionor Pharma ASA and Aurora LPG Holding ASA. Ms. Leisner has a background as a trader of different oil and gas products in her 15 years in Statoil 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 honors from the University of Texas in Austin. Ingrid Leisner is a Norwegian citizen and maintains a business address at Techstep ASA, Brynsveien 3, 0667 Oslo, Norway.

Camilla Magnus (born 1972), Board Member

Ms. Magnus has served the Board since November 2016.

Ms. Magnus is a partner in Advokatfirma Selmer DA and heads the firm's Corporate and Finance Department. Her area of expertise includes M&A, contract law and corporate law. Previously, she served as a member of the board in VOSS of Norway ASA. Ms. Magnus graduated with a law degree from University of Oslo in 1998. She regularly holds lectures and seminars on transaction related legal subjects for Norwegian and foreign lawyers, business community and students. Ms. Magnus is a Norwegian citizen and maintains a business address at Tjuvholmen allé 1, 0252 Oslo, Norway.

Kristian G. Lundkvist (born 1976), Board Member

Mr. Lundkvist has served the Board since November 2016.

Mr. Lundkvist is the CEO and founder of Middelborg AS, a corporation with roots from the retail business in the telecom industry, which has grown into a diversified holding company including investments in real estate, equities, and shipping. Middelborg AS is a long-term industrial owner who actively participates in the value creation of the companies in the portfolio, especially business development, optimization of capital structures and networking. He is also the CEO of Emercor AS, Urbex Invest AS, Merckx AS and Middelborg Invest AS. Furthermore, he holds various positions in listed and unlisted companies, including Middelborg AS (Chairman), Teki Solutions AS (Chairman), Navis Holding AS (Chairman), Navis Finance AS (Chairman), NRC Group ASA (board memeber), Contante AS (Chairman), Bustein AS (Chairman), Rotor Invest AS (Chairman), Emercor AS (board member), Tunsberghus AS (board member), FoynCorp AS (Chairman), SES Shipping AS (board member), Kjedehuset AS (board member), and CMB Invest AS (board member). Mr. Lundkvist has over the last five years held positions in Dome Energy AB (board member) and Fjordgaten 9 AS (board member). Mr. Lundkvist is a Norwegian citizen and maintains a business address at Storgaten 30, 3125 Tønsberg, Norway.

Stein Erik Moe (born 1964), Board Member

Mr. Moe has served the Board since November 2016

Mr. Moe is the CEO and co-founder of Gture AS, a digital services company. Mr. Moe has over 27 years of experience with Accenture, and was a global lead in the Technology, Media and Communication division. He has led large scale projects and transformations, - cross strategy, technology, organisation and business processes. His directorships over the last five years include current board positions in Gture AS (Chairman), Gvalueinvest AS (Deputy Chairman), GoDigitalChina AS (board member), Digitread AS (board member), and Ehealth2u AS (board member). He held a board position at Den Norske Opera & Ballett AS (2009-2015). He holds an Honours degree in Computer Science from the University of Strathclyde in Glasgow, and taken courses in Board management from BI Norwegian Business School. Mr. Moe is a Norwegian citizen and maintains a business address at Hoffsveien 70C, 0377 Oslo, Norway.

9.2.3 Remuneration and benefits

The benefits received from the Company by the members of the Board for the financial year 2016 and the period from the annual general meeting 2017 to the annual general meeting 2018 are described in Section 9.2.1 "Overview of the members of the Board".

As described in the annual financial statement for the year 2016, the Chairman of the Board has billed Chairman's fees of NOK 250,000 for the period June to November 2016.

Other than the above, no Group company has granted any loans, guarantees or other commitments to any member of the Board and there are no unusual agreements regarding extraordinary bonuses or other compensation to any member of the Board.

9.2.4 Shareholdings of the members of the Board

The table below sets forward the shareholdings of each Board Member following the transactions described in Section 7 "Presentation of Techstep":

Name	Position	Number of shares owned
Einar J. Greve29	Chairman	3,651,375
Ingrid Leisner30	Board Member	554,838
Camilla Magnus	Board Member	-
Kristian Lundkvist31	Board Member	28,066,931
Stein Erik Moe	Board Member	-

Cipriano AS (owned by Einar J. Greve) has a right to acquire 3,000,000 Techstep Shares from Zono Holding AS. Aside from this, none of the members of the Board holds any options or warrants.

9.3 Executive Management

9.3.1 Overview of the Executive Management

²⁹ Indirectly through wholly owned company Cipriano AS.

³⁰ Indirectly through Dou Jag AS, a company owned by Ingrid Leisner together with her husband.

³¹ Indirectly through Middelborg Invest AS, a company wholly-owned by Kristian G. Lundkvist through Middelborg AS.

The Executive Management of Techstep comprises 4 individuals with experience from both inside and outside the mobility and communications sector. The Executive Management of Techstep currently includes the following persons:

Name	Position	Served since
Gaute Engbakk	Chief Executive Officer	November 2016
Marius Drefvelin	Chief Financial Officer	January 2017
Mads Vårdal	Chief Innovation Officer	November 2016
Inge Paulsen	Chief Operating Officer	May 2017
Erik Haugen	Chief Commercial Officer	Starting October 2017

9.3.2 Brief biographies of the Executive Management

Gaute Engbakk (born 1974), Chief Executive Officer

Mr. Engbakk was appointed as Techstep's Managing Director/CEO on 5 November 2016. Mr. Engbakk has extensive experience as a change leader, both from working many years in Accenture with large, international companies. In Accenture, he worked in a variety of markets and industries and built up a division within analytics and information management. Mr. Engbakk led Creuna AS, a significant Nordic player within digital solutions, branding and advertising during 2010-2014, and during 2014-2016 he was the CEO of Gambit Hill & Knowlton Strategies. Mr. Engbakk has in-depth IT and communications experience from different verticals and disciplines within digital, big data and change management. Further, he holds position as board member in Lingit AS and Isco Group AS. During the previous five years, he has been a member of the Board of Komm, the organization for communication agencies in NHO, board member in SmartWorks AS as well as a member of the board of the Norwegian Computer Association. Mr. Engbakk holds a Master of Science degree from NTNU, and has supplementary courses within business and strategy from London Business School. Mr. Engbakk is a Norwegian citizen and maintains a business address at Brynsveien 3, 0667 Oslo, Norway.

Marius Drefvelin (born 1976), Chief Financial Officer

Mr. Drefvelin was previously the group CFO of Creuna, a leading Nordic technology and communications consultancy firm with 350 employees. He has been with Creuna since 2012. During 2010-2012, he was a financial advisor at Deloitte, working with mergers, acquisitions and IPOs. Before this, he worked at Jebsen Asset Management from 2007-2009. During 2001-2007, Mr. Drefvelin worked at KPMG, also working with transactions. In addition to his experience with transactions, he has focused on identifying and executing on operational improvements during his time in Creuna. Mr. Drefvelin has a B.Sc. in Finance and a B.Sc. in Economics from the University of Utah, USA. Moreover, he is a Certified European Financial Analyst from the Norwegian School of Economics. Mr. Drefvelin is a Norwegian citizen and maintains a business address at Brynsveien 3, 0667 Oslo, Norway.

Mads Vårdal (born 1983), Chief Innovation Officer

Mr. Vårdal has been with companies within the Techstep sphere for more than eleven 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, and he is the owner of Maceva AS. Mr. Vårdal is a Norwegian citizen and maintains a business address at Brynsveien 3, 0667 Oslo, Norway.

Inge Paulsen (born 1970), Chief Operation Officer

Mr. Paulsen is an experienced executive manager with a proven track record from companies like Clear Channel, Eltel Networks/Sønnico Tele, Infratek/Hafslund, Implement and Accenture. His broad experience comes from heading strategic business development projects in venture businesses or turn around cases as well as holding various executive positions responsible for profit & loss. Mr. Paulsen is a Norwegian citizen and maintains a business address at Brynsveien 3, 0667 Oslo, Norway.

Erik Haugen (born 1972), Commercial Officer

Mr. Haugen joins Techstep from Lindorff AS where he has held the position of Director, Corporate Clients & Public Sector focusing on strategic sales, key account management and business development. He has previously worked 12 years in London working in sales, marketing and business development with companies like Pioneer and Sony Ericsson, and after that working four years The Licensing Agency Ltd. After returning to Norway Mr Haugen joined Norwegian Air Shuttle ASA to start up their mobile communications initiative, Call Norwegian AS. Mr. Haugen has B.Sc in Business Administration from Handelhøyskolen BI. Mr. Haugen is a Norwegian citizen and maintains a business address at Brynsveien 3, 0667 Oslo, Norway.

9.3.3 Shareholdings of the members of the Executive Management

The table below sets forward the shareholdings and stock options of members of the Executive Management:

Name	Position	Number of	Number of options	Average exercise
		shares owned		price
Gaute Engbakk32	CEO	554,838	3,000,000	NOK 6.40
Marius Drefvelin	CFO	-	1,500,000	NOK 6.40
Mads Vårdal	CInO	5,019	1,500,000	NOK 6.40

Mats Vårdal received 5,019 Consideration Shares in the Teki Solutions Transaction. These Consideration Shares are subject to lock-up.

The Board has resolved to grant 3 million share options to CEO Gaute Engbakk, and 1.5 million share options to each of CFO Marius Drefvelin and Chief Innovation Officer Mads Vårdal, vesting in in three equal tranches on the first, second and the third anniversary after the grant at a strike price of NOK 5.70, 6.50 and 7.00, respectively. The option grant was approved at the annual General Meeting of Techstep 2017 following the Board's issued remuneration policy for 2017 which was approved by the annual General Meeting.

9.3.4 Remuneration and benefits to the Executive Management

Remuneration to the Group's management is based on a fixed and a variable part. The fixed component reflects the individual manager's responsibilities and performance. The variable component will be capped at 50 % and the assessment is based on the Company's and individual's achievement.

The salaries and other benefits paid to the current members of the Executive Management for the financial year ended 31 December 2016 are set out in the table below.

³² Indirectly through Antares Group AS

Name	Salary (TNOK)	Pension service cost	Other remuneration	Share option cost	Total
Gaute Engbakk	41733	-	-	-	417
Marius Drefvelin	-	-	-	-	-
Mads Vårdal	1,211	99	950	-	2,260

The CEO, Gaute Engbakk, has an agreed notice period of 6 months and a severance pay for up to 6 months may be agreed upon. No other member of the management has any agreement providing for special benefits upon termination.

The CEO, Gaute Engbakk, is included in the Group's ordinary contribution scheme. In addition to ordinary remuneration, the CEO billed NOK 1.259 million in 2016, through his company Engbakk MCI for services rendered in the period before commencement. See the annual financial statement for 2016 as incorporated by reference in Section 16.2 "Incorporated by reference" to this Information Memorandum.

Through a separate agreement with the former shareholders of Teki Solutions, CEO Gaute Engbakk is guaranteed a bonus of NOK 700,000 in addition to ordinary salary in 2017.

As the date of this Information Memorandum, the Group has no outstanding loans or guarantees to any member of the Executive Management, nor to close associates of any such member.

9.4 Service contracts

Other than set out in Section 9.3.4 "Remuneration and benefits to the Executive Management", no members of the administrative, management or supervisory bodies' service contracts with the Company or any of its subsidiaries provide for benefits upon termination of employment.

9.5 Audit, compensation and nomination committee

9.5.1 Audit committee

The PLCA stipulates that large companies must have an Audit Committee.

The Company has established an audit committee. The Audit Committee's main responsibilities are to supervise the Company's internal control systems and to ensure that the auditor is independent and that the annual accounts and quarterly reporting gives a fair view of the Company's financial results and financial condition in accordance with generally accepted accounting principles.

At the date of this Information Memorandum, the Audit Committee is composed as follows: Ingrid Leisner Camilla Magnus

9.5.2 Compensation committee

³³ From the time of employment 5 November 2016 and to year-end 2016

At the date of the Information Memorandum, the compensation committee consist of Chairman of the Board Einar J. Greve and Board Member Kristian Lundkvist. The compensation policy is reviewed annually. The compensation committee evaluates and determines the total remuneration to the CEO (Managing Director) and the policy for remuneration to managers. The Board remuneration is the responsibility of the nomination committee.

9.5.3 Nomination committee

As stated in the Company's Articles of Association section 6, Techstep shall have a nomination committee consisting of two to three members, which shall be elected by the annual General Meeting. The Nomination Committee's main task is to prepare and present proposals to the annual General Meeting with respect to the following matters:

• Propose candidates for election to the Company's Board.
• Propose the remuneration to be paid to the members of the Board.

The Company has a Nomination Committee established by the Extraordinary General Meeting on 4 November 2016, consisting of two members; Harald Arnet and Ketil Skorstad, who were elected for a term of two years.

9.6 Employees

The tables below set out the development in employees in the Group for the years 2015 and 2016. The first table illustrates the change in number of employees at year-end for each geographic location Techstep operates in. The second table sets out the number of employees at year-end for each of Techstep's business segments.

Geography	31 March 2017	31 December 2016	31 December 2015
Sweden	1	1	-
Norway	131	121	124
Total	132	122	124

The table below provides an overview of number of employees split by segment.

Segment	31 March 2017	31 December 2016	31 December 2015
Hardware	80	79	89
Solutions	44	33	25
Other / Not allocated	8	10	10
Total	132	122	124

As of the date of this Information Memorandum the Group has approximately 209 employees, including BKE which has 43 employees as of the date of this Information Memorandum.

Techstep practices equal opportunities in all aspects. The Board considers the equality as well as can be, and has not found reason to initiate any particular program for involving the employees in the capital of the issuer.

9.7 Conflict of interest, etc.

There are no conflicts of interest between any duties to the Company of the members of the administrative, management of supervisory bodies, and their private interests and/or duties.

There are no family relations between any of the Company's Board members or management.

During the last five years preceding the date of this Information Memorandum no member of the Board or the senior management has:

• any convictions in relation to fraudulent offences;
• been involved of any bankruptcies, receiverships or liquidations in his capacity as a member of the administrative, management or supervisory bodies; or
• received any official public incrimination and/or sanctions by statutory or regulatory authorities (including designated professional bodies) or ever been disqualified from a court from acting as a member of the administrative, management or supervisory bodies of an issuer or from acting in the management or conduct affairs of any issuer.

There is no arrangement or understanding with major shareholders, customers, suppliers or others, pursuant to which members of the Board or management was selected as a member of the administrative, management or supervisory bodies or member of senior management.

9.8 Corporate governance

Pursuant to the Norwegian Accounting Act section 3–3b, listed companies shall present their principles for corporate governance and review the compliance with the recommendations set out in the Norwegian Code of Practice for Corporate Governance. Techstep's goal is to be in compliance with the Norwegian Code of Practice for Corporate Governance (NUES) of October 30, 2014.

According to the Company's own assessment, the Company deviates from four sections of the Code of Practice at the turn of the year 2016/2017:

• Clarification of the core values and formulation of guidelines for ethics and corporate social responsibility (Section 1);
• Formulation of the rules of procedure for the Nomination Committee (Section 7);
• Formulation of company takeover policy (Section 14); and
• Formulation of guidelines for use of the auditor for services other than auditing (Section 15).

The Board and Executive Management will use 2017 to revise and formulate the necessary instructions, policies and procedures, including clarification of Techstep's values and ethical and social responsibility. A separate statement on Techstep's compliance with these Corporate Governance principles has been prepared in the annual report for 2016.

10 Operating and financial information

10.1 Basis for preparation and accounting principles and policies

The following selected financial information for the years ended 31 December 2015 and 31 December 2016 and three month periods ended 31 March 2016 and 31 March 2017 has been extracted from the Company's audited consolidated financial statement as of and for the year ended 31 December 2016 and its unaudited consolidated financial statement as of and for the three month periods ended 31 March 2017. In connection with the Q4 2016 report and annual report for 2016 for Techstep, the acquisition of Teki Solutions has for accounting purposes been treated as a reverse takeover so that the financial information reflects the business in Teki Gruppen and that operating results for Techstep only have been included from the date of the completion of the Teki Gruppen Transaction (7 November 2016). The Company's annual financial statement has been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS"). The selected financial information included herein should be read in connection with, and is qualified in its entirety by reference to, the annual financial statement for the year 2016 and the interim report for the first quarter 2017, which is incorporated by reference to this Information Memorandum, see Section 16.2 "Incorporated by reference".

Please note that Techstep's Group accounts represent Teki Solutions after the reverse takeover 7 November 2016 of Techstep as the activities of the Group mainly is based on the business in Teki Solutions. For accounting purposes, Teki Solutions is considered the acquirer and accounts for the combined entity are a continuation of the financial statements for Teki Solutions group. The financial statements thus consist of the consolidated accounts for Teki Solutions group for 2016, including Zono AS and Techstep from the date of the business combination 7 November 2016. At the same time, the accounting principles for the operating unit, Teki Solutions, was changed from NGAAP to IFRS.

Teki Solutions' financial statements for 2015 was prepared based on accounting principles generally accepted in Norway. Since Teki Solutions was identified as the acquirer, IFRS has been implemented from 01.01.2015 for the Teki Solution group. Due to the changed from NGAAP to IFRS, no actual reported figures for the Techstep Group were previously reported, and the operating result and financial position for previous years was compiled pro-forma from the inception of the group in 2012. The transition to IFRS is further described in the annual financial statement for the year 2016.

The Company is of the opinion that the annual financial statement for the year 2016 and the interim report for Q1 2017 give the information which is necessary for an investor to make an informed assessment of the Company's financial position and prospects.

Mytos, InfraAdvice and Apro will be included in the Company's financial reports from the date of the takeover, i.e. Mytos will be included from 21 February 2017 and InfraAdvice and Apro from 3 April 2017.

Neither the Mytos Acquisition, the InfraAdvice Acquisition, the Apro Acquisition nor the Nordialog Asker Transaction resulted in significant gross changes in the Company's business, meaning a variation of more than 25% in the Company's business as a result of that particular transaction. However, the BKE Acquisition will result in such a significant gross change and the Company has therefore prepared unaudited pro forma financial information, see Section 11 "Unaudited pro forma financial information".

10.2 Selected historical financial information

10.2.1 Selected income statement information

The table below sets out a summary of the Company's audited consolidated income statement information for the years ended 31 December 2015 and 2016 and its unaudited consolidated income statement information for the three month periods ended 31 March 2016 and 2017.

(amounts in NOK 1,000)	Q1 2017	Q1 2016	2016	2015
Revenue	144,963	133,958	570,526	622,508
Other revenue	256	1,059	2,972	7,818
Total revenue	145,218	135,017	573,498	630,325
Cost of materials	98,275	96,709	405,210	447,472
Salaries and personnel costs	27,995	24,722	104,041	99,787
Depreciation	444	207	903	1,349
Amortisation intangible assets	3,709	4,783	18,984	22,655
Other operation costs	13,837	13,416	51,169	58,624
Other cost	10,551	0	17,511	0
Total operating expenses	154,811	139,836	597,818	629,887
Operating profit	(9,592)	(4,820)	(24,319)	438
Financial income and expense	(196)	(1,571)	(5,117)	(10,216)
Technical loss	0	0	(21,217)	0
Net financial expense	(196)	(1,571)	(26,334)	(10,216)
Profit before taxes	(9,788)	(6,391)	(50,654)	(9,778)
Income taxes	526	1,196	5,954	1,697
Net income	(9,262)	(5,195)	(44,700)	(8,081)
Net income attributable to
Non-controlling interests	0	(493)	(4,245)
Shareholders of Techstep ASA	(9,262)	(4,702)	(40,455)	(8,081)
Earnings per share in NOK:
Net income after tax	(0.08)	(0.47)	(1,17)	(0,80)
Other comprehensive income	(9,262)	(5,195)	(44,700)	(8,081)

10.2.2 Selected statement of financial position information

The table below sets out a summary of the Company's audited consolidated balance sheet as of 31 December 2015, 31 December 2016 and 1 January 2015 and its unaudited consolidated balance sheet for the three month periods ended 31 March 2016 and 2017.

(amounts in NOK 1,000)	Q1 2017	Q1 2016	2016	2015	01.01.2015

Assets
Intangible assets
Deferred tax asset	15	0	857	0	0
Goodwill	379,956	253,378	253,378	253,378	251,700
Customer relations	23,769	32,464	18,116	37,247	59,902
Total intangible assets	403,740	285,842	272,350	290,624	311,602
Tangibles	3,054	3,445	3,159	3,652	4,244
Total tangible and intangible assets	406,794	289,287	275,509	294,276	315,846
Financial assets
Associated companies	0	14,197	13,349	14,195	0
Shares and investments	30,150	4,985	27,973	4,973	7,973
Other non-current assets	616	933	506	930	801
Total financial assets	30,766	20,115	41,829	20,098	8,774
Total non-current assets	437,561	309,402	317,338	314,374	324,620
Inventories	8,549	23,943	9,526	12,137	13,906
Accounts receivable	76,958	104,590	83,250	68,385	62,942
Other receivable	39,939	25,161	16,603	40,700	38,393
Total inventories and receivables	125,446	153,693	109,379	121,221	115,241
Cash and cash equivalents	74,184	6,885	81,692	18,982	17,138
Total current assets	199,630	160,578	191,071	140,203	132,379
	637,190	469,980	508,409	454,578	456,999
Total assets
	Q1 2017	Q1 2016	2016	2015	01.01.2015
Equity
Share capital	139,201	244	102,476	244	32
Other equity	311,199	30,630	132,631	42,081	(147,057)
Total equity attributable to the owners of Techstep ASA	450,400	30,874	235,107	42,326	(147,025)
Non-controlling interests	0	3,240	25,187	0	0
Total equity	450,400	34,114	260,294	42,326	(147,025)
Liabilities
Deferred tax	0	8,705	0	9,901	16,616
Non-current interest bearing debt	12,656	31,250	12,656	31,250	60,000
Non-current interest bearing debt to shareholders	0	21,251	0	24,848	157,850
Other non-current debt	2,025	0	0	308	10,166
Total non-current debt Current interest bearing debt to shareholders	14,681	61,206	12,656	66,307	244,632
Current interest bearing liabilities	0	149,900	0	133,011	182,600
Accounts payable	68,161 48,187	91,900 23,352	113,721 62,050	85,027 56,045	76,644 50,250

Public taxes, provisions	15,333	8,897	14,007	9,597	12,131
Other current liabilities	29,652	96,587	36,342	57,967	37,215
Total current debt	172,109	374,660	235,458	345,945	359,392
Total liabilities	186,790	435,865	248,114	412,252	604,024
Total equity and liabilities	637,190	469,980	508,409	454,578	456,999

10.2.3 Selected cash flow information

The table below sets out a summary of the Company's audited consolidated cash flow statement for the years ended 31 December 2015 and 2016 and its unaudited consolidated cash flow statement for the three month periods ended 31 March 2016 and 2017.

	(amounts in NOK 1,000)	Q1 2017	Q1 2016	2016	2015
	Profit before tax	(9,788)	(6,391)	(50,654)	(9,778)
	Profit from associated company	(107)	(2)	(157)	444
	Amortization intangible assets	3,709	4,783	18,984	22,655
	Depreciation tangible assets	444	207	903	1,349
	Technical loss reversed takeover	0	0	21,217	0
	Taxes paid	(1,956)	(276)	(4,224)	(552)
	Changes in net operation working capital	(8,874)	(6,497)	(16,940)	20,885
A	Net cash flow from operation activities	(16,572)	(8,177)	(30,871)	35,003
	Investment in subsidiaries	(50,000)	0	0	(16,889)
	Investment in financial assets	(100)	(15)	424	(129)
	Investment in machinery, inventories	(37)	0	(410)	(757)
B	Net cash used on investment activities	(50,137)	(15)	14	(17,775)
	New issued equity capital	65,900	0	0	0
	Repayment of shareholder loans	0	0	(24,848)	0
	Repayment of other long term debt	0	(308)	(18,902)	(9,858)
	Change in interest bearing debt	(14,375)	(3,597)	72,011	(5,526)
	Cash from acquisition of Techstep ASA	0	0	10,306	0
	Cash from acquisition of Zono AS	0	0	55,000	0
	Cash from acquisition of Mytos	4,399	0	0	0
	Cash from acquisition of Nordialog Asker	3,277	0	0	0
C	Net cash flow from financing activity	59,201	(3,905)	93,567	(15,383)
	Net change in cash and cash equivalents (A+B+C)	(7,508)	(12,097)	62,710	1,844
	Cash and cash equivalents at the beginning of period	81,692	18,982	18,982	17,138
	Cash and cash equivalents at the end of period	74,184	6,885	81,692	18,982

10.2.4 Statement of changes in equity

The table below sets out a summary of the Company's audited consolidated statement of changes in equity for the year ended 31 December 2016 and its unaudited consolidated statement of changes in equity for the period ended 31 March 2017.

			Other	Other			Total
	Share	Treasury	paid-in	equity		Minority	equity
(amounts NOK 1,000)	capital	shares	capital	capital	Sum	interest	capital
Equity as of
1 January 2016	244	0	197,607	(155,526)	42,326	0	42,326
Ordinary result 2016	0	0	0	(40,455)	(40,455)	(4,245)	(44,700)
Comprehensive result
2016	0	0	0	0	0	0	0
New issued share
capital	102,231	(1,914)	86,095	58,115	244,527	29,433	273,959
Other, merger diff.	0	0	0	(2,027)	(2,027)	0	(2,027)
Other, errors prev.
years	0	0	0	(9,264)	(9,264)	0	(9,264)
Equity as of 31
December 2016	102,475	(1,914)	283,702	(149,157)	235,107	25,188	260,294
Ordinary result Q1 2017	0	0	0	(9,262)	(9,262)	0	(9,262)
Comprehensive result
Q1 2017	0	0	0	0	0	0	0
New issued share
capital	36,726	0	162,646	25,188	224,560	(25,188)	199,372
Other, converting diff.	0	0	0	(4)	(4)	0	(4)
Equity as of 31 March
2017	139,201	(1,914)	446,348	(133,235)	450,401	0	450,400

10.3 Capitalisation and indebtedness

The tables below set out the Company's capitalization and net financial indebtedness as of 31 March 2017 both on an actual basis and on an adjusted basis to show the estimated effect of the acquisition of BKE. You should read this information together with the other parts of this Information Memorandum, as well as the Company's financial statements incorporated by reference into this Information Memorandum.

The "actual" columns in the tables below set out the Company's unaudited capitalization and net financial indebtedness, respectively, as of 31 March 2017 and have been based on the Company's unaudited consolidated financial statements as of 31 March 2017, whereas the "as adjusted" columns set out the Company's unaudited capitalization and net indebtedness, respectively, on an adjusted basis to show the estimated effect of the acquisition of BKE.

Based on the information outlined in Section 6 "The BKE Acquisition" in this Information Memorandum, the following adjustments are made for the BKE Acquisition:

	Change in share	Change in share		Change in vendor
NOK 1,000 (unaudited)	capital	premium	Change in cash	note
BKE	4,730	21,001	-38,227	14,706

Total	4,730	21,001	-38,227	14,706

Note that changes in vendor notes are added to non-current liabilities in the capitalisation table and to other non-current financial debt in the indebtedness table.

10.3.1 Capitalisation, as at the three month period ended 31 March 2017

NOK 1,000 (unaudited)	Actual	As adjusted
Share capital	139,201	143,931
Treasury shares	-1,914	-1,914
Share premium	471,531	492,532
Retained earnings	-158,418	-158,418
Minority shares	0	0
Total equity (A)	450,400	476,131
Total current liabilities	172,109	172,109
- of which is guaranteed/secured	-	-
- of which is unguaranteed/unsecured	172,109	172,109
Total non-current liabilities	14,681
- Guaranteed/secured	-	-
- Unguaranteed/unsecured	14,681	29,387
Total liabilities (B)	186,790	201,496
Total capitalization (A+B)	637,190	677,627

10.3.2 Indebtedness, as at the three month period ended 31 March 2017

NOK 1,000 (unaudited)	Actual	As adjusted
A. Cash	74,184	35,957
B. Cash equivalents	-	-
C. Trading securities	-	-
D. Liquidity (A)+(B)+(C)	74,184	35,957
E. Current financial receivables	-	-
F. Current bank debt	68,161	68,161
G. Bonds/other loans due within 1 year	-	-
H. Current portion of non-current debt	-	-
I. Other current financial debt	-	-
K. Current financial debt (F)+(G)+(H)+(I)	68,161	68,161
L. Net current financial indebtedness (K) - (E) - (D)	-6,023	32,204
M. Non-current bank debt	14,681	14,681
N. Bonds due after 1 year	-	-
O. Other non-current financial debt	-	14,706
P. Non-current financial debt (M) + (N) + (O)	14,681	29,387
Q. Net financial indebtedness (L) + (P)	8,658	61,591

10.4 Working capital statement

The Company is, as of the date of this Information Memorandum, of the opinion that the Group's working capital is sufficient for the Group's present requirements in a twelve months perspective as from the date of this Information Memorandum.

10.5 Trend information

Techstep operates in a structurally attractive enterprise mobility market, where there are strong demand and growth opportunities. Since the first acquisitions were made in the summer and autumn of 2016, Techstep has taken major steps to position itself as a leading, complete provider of the digital workplace and enterprise mobility management in the Nordics. Strategically important acquisitions have been made to complement Techstep's product portfolio and increase its customer base.

The Company and the organization are currently undergoing a restructuring and transformation to deliver according to the revised strategy. Techstep will concentrate on the development of five key areas in 2017:

• Establish MaaS, an integrated service that bundles hardware, a mobile platform, support and service, and business applications tailored to the customer, and sell this as a monthly fee per user.
• Change the sales focus from one-off hardware sales to recurring revenue by establishing a "solution hub" that can package solutions for sale.
• Expand geographically in the Nordic region by establishing presence in Sweden.
• Streamline distribution by establishing self-service and package solutions for the products and services that are offered to customers.
• - Strengthen partnerships through increased sales and closer cooperation with selected partners.

10.6 Financial statements and auditors

The Company's auditor is BDO AS, Munkedamsveien 45, 0250 Oslo, Norway, who has acted as the Company's statutory auditor since 2009. Accordingly, no auditor of the Group has resigned, been removed or failed to be re-appointed during the period covered by the historical financial information discussed herein. BDO is a member of the Norwegian Institute of Public Accounts (DnR).

The auditor's report on the Financial Statements is included together with the Financial Statements as incorporated hereto by reference, see Section 16.2 "Incorporated by reference". Neither BDO AS nor any other auditor has audited, reviewed or produced any report on any other information provided in this Information Memorandum.

10.7 Significant changes in financial and trading position after 31 March 2017

In April 2017, agreements to acquire the Swedish Enterprise Mobility Management specialist InfraAdvice Sweden AB for SEK 18.5 million and the hardware supplier Apro Tele og Data AS for NOK 15.5 million were completed. InfraAdvice is an Enterprise Mobility Management specialist with a pan-Nordic customer portfolio of mainly large corporates and municipalities. Apro is a leading supplier of fixed network IP and mobile solutions with special expertise in the public sector.

In April 2017, Techstep Finance was formally established, a joint venture with Bridge Capital AS, which will be a key part of Techstep's future delivery of MaaS.

In April 2017, Techstep entered into an agreement with Norsk Sykepleierforbund for delivery of mobile-as-a-service of 2,650 Apple iPads. The agreement includes buy-back of current devices as well as financing through Techstep Finance AS.

In July 2017, the Company entered into the BKE SPA in order to acquire BKE. The BKE Acquisition is expected to be consummated on 31 August 2017.

Apart from the above, there has been no significant change in the financial or trading position of the Group since 31 March 2017.

10.8 Legal and arbitration proceedings

NetConnect ASA was acquired by Teki Solutions 15 August 2013. At the time of the takeover, the company had a loss carry forward of approximately 71 million. Part of the loss carried forward was offset against taxable income in other Group companies (Group contribution) in 2014. The Norwegian Tax Administration has questioned the right to offset this loss after the takeover. As a result of the misinterpretation of rules relating to loss carry forward after change of control, and an error when filling the NetConnect tax return for 2013, the tax for 2014 allegedly corrected by the Norwegian Tax Administration and up to 30% additional tax of the not yet utilized part of the deficit was imposed. In total, this represents 9.2 million, and the amount is recognized directly in equity in accordance with IAS 8. The company argued against the Norwegian Tax Administration to reduce the additional tax as, in their view, the basis for this is not met. At the date of the Information Memorandum, the case has not yet been decided.

Aside from the above, the Group is not involved in any other governmental, legal or arbitration proceedings, nor is the Company aware of any such pending or threatened proceedings, nor has the Group during the last 12 months prior to this Information Memorandum been involved in any governmental, legal or arbitration proceedings, which may have or have had any significant effects on the Company and/or Group's financial position or profitability.

10.9 Restricted funds, credit facilities

(amounts in NOK 1 000)	31 March 2017	31 December 2016	31 December 2015
Bank deposits	74,184	81,692	18,982
Hereof restricted funds - provision for employee tax	3,124	4,961	3,827
Restricted as a result of guarantees in favor of 3rd parties	0	0	0
The Group has the following credit facilities:
Overdraft facility	40,000	40,000	30,000
Factoring facility	40,000	40,000	50,000

Drawn as of December 31
Overdraft facility	31,834	33,416	17,951
Factoring facility	29,459	37,269	38,336

The Group was in violation of the following covenant in connection with the credit facilities as of 31 December 2016:

* NIBD / EBITDA max 1.5. Annual measurement to consolidated financial statements.

In connection with this, the Company has obtained a waiver from the bank, DNB, who accept the violation given that covenant is met by 31 December 2017.

11 UNAUDITED PRO FORMA FINANCIAL INFORMATION

11.1 Background to the preparation of unaudited pro forma financial information

On 3 July 2017, the Company entered into a binding agreement to acquire BKE (the BKE Acquisition). The BKE Acquisition resulted in a significant gross change for the Company, as defined in Commission Regulation (EC) No. 809/2004 of 29 April 2004 which sets out the requirements for preparation of pro forma financial information to be included. As a result, pro forma has been included in this Information Memorandum in order to illustrate how the acquisition of the BKE Acquisition might have affected the Group's income statement and balance sheet had the BKE Acquisition been acquired effective 1 January 2016. The unaudited pro forma financial information is prepared exclusively for guidance purposes.

11.2 Sources of unaudited pro forma financial information

The pro forma figures as presented below are the combined accounts of Techstep Group 2016 annual accounts based on IFRS and BKE Telecom AB's accounts based on Swedish Generally Accepted Accounting Principles ("SGAAP") for the period 1 January 2016 to 31 December 2016.

11.3 Basis for preparation of the unaudited pro forma financial information

The unaudited pro forma condensed financial information has been prepared to comply with the applicable EU-regulations including EU Regulation No 809/2004. This information is not in compliance with SEC Regulation S-X, and had the securities been registered under the U.S: Securities Act of 1933, this unaudited pro forma financial information, including the report by the auditor, would have been amended and / or removed from the Information Memorandum.

Because of its nature, the unaudited pro forma condensed financial information addresses a hypothetical situation, and, therefore, does not represent the Company's actual financial position or results if the BKE Acquisition had in fact occurred on those dates and is not representative of the results of operations for any future periods. Investors are cautioned not to place undue reliance on this unaudited pro forma financial information. None of the other acquisitions in 2017 are included in the adjustments.

The accounting principles applied for the Group are in accordance with those accounting principles outlined in note 1 to the Group's annual financial statements for 2016, incorporated by reference to this Information Memorandum, see Section 16.2 "Incorporated by reference". The unaudited pro forma financial information for the Group does not include all information required for financial statements under IFRS, and should be read in conjunction with the historical information for Techstep. The pro forma figures have been prepared by using the same accounting principles as for 2016. The unaudited pro forma condensed financial information is based on the audited historical financial information of the Group.

As BKE has a financial year different from the calendar year (the financial year runs from 1 May to 30 April) the audited BKE figures has been restated based on the monthly accounts to cover the calendar year 2016.

The BKE accounts have been restated from SGAAP to IFRS. The Company has not identified any material differences between SGAAP and IFRS. This conversion only covers the IFRS standards currently in effect, consequently, the potential effect of the new IFRS standards such as IFRS 9 Financial instruments, IFRS 15 Revenue from contracts with customers and IFRS 16 Leases have not been analyzed. As no IFRS adjustments are identified in the pro forma financial information, there are no supporting notes. For the same reason, the adjustments neither can be deemed to have a permanent nor temporary inflict on the issuer's accounts. Further, the pro forma adjustments represent an ordinary consolidation of the daughter company BKE TeleCom AB in the group accounts and as such are deemed to have a permanent impact.

The assumptions underlying the pro forma adjustments and principles of acquisition accounting, for the purpose of preparing the pro forma, are described in the notes to the pro forma information included in Section 11.6 "Notes to the unaudited pro forma financial information" below. Neither these adjustments nor the resulting pro forma financial information have been audited.

When converting the BKE accounts from Swedish kroner to Norwegian kroner, the 2016 yearly average exchange rate has been used for the profit and loss account and the rate per 31 December 2016 for the balance sheet.

				Notes to pro
(amounts in NOK 1,000)	Techstep ASA 2016 Audited	BKE Telecom AB 2016 Unaudited	Pro forma adjustments Unaudited	forma adjustments Unaudited	Pro forma 2016 Unaudited
Revenue	570,526	227,975			798,501
Other revenue	2,972	(173)			2,799
Total revenue	573,498	227,082			801,300
Cost of materials	405,210	181,764			586,974
Salaries and personnel costs	104,041	23,598			127,639
Depreciation	903	668			1,571
Amortisation intangible assets	18,984	0	2,582	11.6.1	21,565
Other operation costs	51,169	7,426			58,595
Other cost	17,511	0			17,511

11.4 Unaudited pro forma condensed financial information – income statement for the twelve months ending 31 December 2016

Total operating expenses	597,818	213,456	(2,582)		813,855
Operating profit	(24,319)	14,346	(2,582)		(12,555)
Financial income and expense Technical loss	(5,117) (21,217)	(315)			(5,432) (21,217)
Net financial expense	(26,334)	(315)			(26,649)
Profit before taxes	(50,654)	14,031			(39,204)
Income taxes	5,954	(3,325)	568	11.6.2	3,197
Net income	(44,700)	10,706	(2,014)		(36,007)
Net income attributable to
Non-controlling interests	(4,245)		826	11.6.3	(3,420)
Shareholders of Techstep ASA	(40,455)				(32,588)
Earnings per share in NOK:
Net income after tax	(0.65)				(0.48)
Other comprehensive income	(44,700)	10,706	(2,014)		(36,007)

11.5 Unaudited pro forma condensed financial information – balance sheet as of 31 December 2016

(amounts in NOK 1,000)				Notes to pro
	Techstep	BKE	Pro forma	forma
	ASA	Telecom AB	adjustments	adjustments	Pro forma
	2016	2016			2016
	Audited	Unaudited	Unaudited	Unaudited	Unaudited
Assets
Intangible assets
Deferred tax asset	857	0	(857)	11.6.2	0
Goodwill	253,378	0	87,886	11.6.1	341,264
Customer relations	18,116	0	10,326	11.6.1	28,442
Total intangible assets	272,350	0	97,355		369,706
Tangibles	3,159	11,914	(5,422)	11.6.1	9,651
Total tangible and intangible assets	275,509	11,914	91,934		379,357
Financial assets
Associated companies	13,349	0			13,349
Shares and investments	27,973	0			27,793
Other non-current assets	506	0			506
Total financial assets	41,829	0	0		41,829
Total non-current assets	317,338	11,914	91,934		421,185

Inventories	9,526	4,117			13,643
Accounts receivable	83,250	23,539			106,789
Other receivable	16,603	6,364			22,968
Total inventories and receivables	109,379	34,021			143,400
Cash and cash equivalents	81,692	7,967	(38,227)	11.6.1	51,432
Total current assets	191,071	41,988	(38,227)		194,832
Total assets	508,409	53,902	53,707		616,017
Equity
Share capital	102,476	95	4,635	11.6.1	107,205
Other equity	132,631	16,280	12,456	11.6.1	161,367
Total equity attributable to the owners of
Techstep ASA	235,107	16,375	17,091		268,572
Non-controlling interests	25,187	0	826		26,013
Total equity	260,294	16,375	17,916		294,585
Liabilities
Deferred tax	0	1,184	242	11.6.2	1,426
Non-current interest bearing debt	12,656	7,596			20,253
Non-current interest bearing debt to	0		14,894	11.6.1	14,894
shareholders
Other non-current debt	0				0
Total non-current debt	12,656	8,781	15,136		36,572
Current interest bearing debt to shareholders	0	0			0
Current interest bearing liabilities	113,721	238			113,959
Accounts payable	62,050	13,451			75,501
Tax payable	9,338	4,471			13,808
Public taxes, provisions	14,007				14,007
Other current liabilities	36,342	10,587	20,655	11.6.1	67,584
Total current debt	235,458	28,746	20,655		284,860
Total liabilities	248,114	37,527	35,791		321,432
Total equity and liabilities	508,409	53,902	53,707		616,017

11.6 Notes to the unaudited pro forma financial information

11.6.1 Preliminary purchase price allocation

A preliminary purchase price allocation (PPA) has been performed in which the identifiable assets, liabilities and contingent liabilities of BKE have been identified. A final PPA has not been prepared as of to date as only limited information and time has been available in preparation of the PPA. The PPA in the unaudited pro forma condensed financial information is based on the fair value of acquired assets and liabilities as of the date of acquisition. The excess/ less values identified in this preliminary PPA may change when further and more complete information regarding the assets and

liabilities acquired is available. The values allocated to the identified tangible and intangible assets and liabilities may change in the final PPA.

Purchase price

Closing of the share purchase agreement is to take place on 31 August 2017. The purchase price shall be paid to the sellers in accordance with the following:

	Techstep shares	SEK million	NOK million
Cash consideration		38.5	38.2
Shareholders loan		15.0	14.9
Earn out		20.8	20.7
Consideration shares	4,729,893		25.7
Calculated purchase price (preliminary)			99.5

Preliminary purchase price allocation

	SEK million	NOK million
Tangible assets	12.1	12.0
Inventory	2.9	2.9
Accounts receivable	18.2	18.0
Other short term receivables	5.2	5.2
Cash and cash equivalents	11.7	11.6
Deferred tax	-1.2	-1.2
Debt to credit institutions	-8.0	-7.9
Accounts payable	-10.0	-9.9
Current tax liabilities	-3.9	-3.9
Other short term debt	-21.7	-21.5
Net	5.3	5.3
Purchase price	99.5	98.8
Excess value	94.2	93.5
Excess value allocated to:
Less value building	-5.7	-5.7
Customer relations	13	12.9
Deferred tax	-1.6	-1.6
Goodwill	88.5	87.9
Total	94.2	93.5

Other assumptions

• Customer relations is considered an intangible asset with a limited economic life and is subject to a 5 years straight line amortization
• BKE reported figures have been adjusted regarding deferred tax on the untaxed reserves (NOK 1.2 million)

SEK/NOK exchange rate of 0.9929 as of 30 June 2017 applied for the calculation of the purchase price

11.6.2 Deferred tax

According to SGAAP deferred tax asset on untaxed reserves has not been entered to the accounts. In the group account according to IFRS this has to be entered. In addition deferred tax on excess value allocated to customer relations is calculated (temporary difference). Tax resulting from the change in temporary differences is presented as part of taxes in the profit and loss accounts.

(amounts in NOK 1,000)
Deferred tax advantage Techstep ASA 31.12.2016	857
Deferred tax on untaxed reserves 5.66 MSEK x 22% (rate 31.12.16)	-1,184
Deferred tax on allocated customer relations (prelim PPA)	-2,860
Deferred tax on 2016 amortization customer relations	568
Deferred tax advantage on less value building (prelim PPA)	1,193
Deferred tax Techstep Group 31. December pro forma	-1,426

11.6.3 Specification of changes in equity

			Other	Other			Total
	Share	Treasury	paid-in	equity		Minority	equity
(amounts NOK 1,000)	capital	shares	capital	capital	Sum	interest	capital
Equity as of
1 January 2016	244	0	197,607	(155,526)	42,326	0	42,326
Ordinary result 2016	0	0	0	(40,455)	(40,455)	(4,245)	(44,700)
Comprehensive result
2016	0	0	0	0	0	0	0
New issued share
capital	102,231	(1,914)	86,095	58,115	244,527	29,433	273,959
Other, merger diff.	0	0	0	(2,027)	(2,027)	0	(2,027)
Other, errors prev.
years	0	0	0	(9,264)	(9,264)	0	(9,264)
Equity as of 31
December 2016	102,475	(1,914)	283,702	(149,157)	235,107	25,188	260,294
Consideration shares
BKE TeleCom AB,
4,729,893 shares at
NOK 5.44	4,730		21,001	0	25,731		25,731
Ordinary result BKE
2016				7,867	7,867		8,693
Converting difference				(133)	(133)		(133)
Equity as of 31
December 2016 pro
forma	107,205	(1,914)	304,702	(141,422)	268,572	26,013	294,585

11.7 Independent assurance report on the pro forma financial information

With respect to the unaudited pro forma financial information, the Company's auditor, BDO AS has applied assurance procedures in accordance with International Standards on Assurance Engagements 3420, Assurance Engagements to Report the Compilation of Pro Forma Financial information Included in a Prospectus, in order to express an opinion as to whether the unaudited pro forma condensed financial information has been properly compiled on the basis stated, and that such basis is consistent with the accounting policies of the Group. BDO's report is included as Appendix 2 "Independent Assurance Report on the Pro Forma Financial Information" to this Information Memorandum

12 Share capital, shareholder matters

12.1 Share capital

As of the date of this Information Memorandum, the Company's share capital is NOK 141,277,820 divided into 141,277,820 Shares with each Share having a nominal value of NOK 1.00. All the Shares have been created under the PLCA, and are validly issued and fully paid. In addition, 4,729,893 new Shares will be issued to the Sellers in the BKE Acquisition.

All Shares are issued in book-entry form in the VPS on ISIN NO 0003095309. The Company's registrar is DNB Bank ASA, Securities Services, Dronning Eufemias gate 30, NO 0191 Oslo, Norway. The Shares are listed at Oslo Børs under ticker "TECH".

The Company has one class of Shares. All Shares have equal voting rights. Other than the options described in Section 9.3.3 "Shareholdings of the members of the Executive Management", there are no share options or other rights to subscribe for or acquire Shares issued by the Company.

Currently, the Board is authorized to increase the Company's share capital by up to NOK 35,000,000 by issuing up to 35,000,000 shares with a par value of NOK 1, of which 2,076,391 Shares have already been issued in connection with the Apro Acquisition and the InfraAdvice Acquisition. The power of attorney is valid up to the annual General Meeting 2018, and 30 June 2018 at the latest. The previous authorizations granted by the Company's Extraordinary General Meeting 4 November 2016 expired at the annual General Meeting 27 April 2017. Further, at the annual General Meeting 27 April 2017, it was resolved to authorize the Board to increase the share capital by up to NOK 13,500,000 by issuing up to 13,500,000 shares with a par value of NOK 1 in connection with the Company's incentive plan for its employees and directors.

The Company holds 1,914 treasury shares. At the annual General Meeting 27 April 2017, the Board was authorized to purchase the Company's own Shares, and to hold treasury shares. The maximum number of Shares which may be acquired shall not exceed an aggregate per value of NOK 13,393,827 (corresponding to approximately 10 % of the Company's share capital as registered 8 March 2017). The price per Share which Techstep may pay shall not be lower than the par value of the shares nor higher than NOK 100. At the date of this Information Memorandum, this authorization has not been used. The authorization expires at the date of the annual General Meeting 2018, and 30 June 2018 at the latest.

Please note that at an extraordinary general meeting on 29 January 2016, the General Meeting resolved a 10:1 share consolidation (reverse split) which became effective on 11 March 2016.

The table below shows the development in the Company's share capital for the period from 1 January 2014 to the date hereof:

Date	Type of change	Share capital increase / decrease (NOK)	New share capital (NOK)	Total number of Shares	Par value per share (NOK)	Price per share (NOK)
May 2014	Share issue	150,000	10,162,162.70	101,621,627	0.10	1.59
Feb 2016	Share issue	0.30	10,162,163.00	101,621,630	0.10	0.30
Mar 2016	Share issue	3,400,000	13,562,163.00	13,562,163	1.00	2.20
July 2016	Share issue	678,108	14,240,271.00	14,240,271	1.00	2.20
Aug 2016	Share issue	58,181,818	72,422,089.00	72,422,089	1.00	2.20
Nov 2016	Share issue	30,053,488	102,475,577.00	102,475,577	1.00	4.30
Feb 2017	Share issue	12,280,702	114,756,279.00	114,756,279	1.00	5.70
Feb 2017	Share issue	11,666,667	126,422,946.00	126,422,946	1.00	6.00
March 2017	Share issue	7,515,325	133,938,271.00	133,938,271	1.00	4.30 and
						6.5034
March 2017	Share issue	5,263,158	139,201,429.00	139,201,429	1.00	5.70
April 2017	Share issue	2,076,391	141,277,820.00	141,277,820	1.00	6.00 and 5.807135

During the period covered by the historical financial information herein, more than 10% of the Company's share capital has been paid for with assets other than cash.

On 17 October 2016, Zono Holding AS launched a mandatory offer to acquire all outstanding shares in Techstep in connection with the Zono Transaction. Zono Holding AS' purpose with making the mandatory offer was only to comply with the mandatory offer obligations in the Norwegian Securities Trading Act, not to increase its ownership stake in Techstep. The offer price was NOK 2.20 per Share. Zono Holding AS received 17,207 Shares in total under the mandatory offer.

12.2 Dividends and Dividend policy

12.2.1 Dividend Policy

In deciding whether to propose a dividend and in determining the dividend amount, the Board will take into account legal restrictions, as set out in the PLCA, (see Section 12.3.2 "Certain aspects of Norwegian law"), the Company's capital requirements, including capital expenditure requirements, its financial condition, general business conditions and any restrictions that its contractual arrangements in place at the time of the dividend may place on its ability to pay dividends and the maintaining of appropriate financial flexibility. Except in certain specific and limited circumstances

³⁴ 6,580,710 Shares were issued as consideration in the Teki Solution Transaction to a contribution price per share at NOK 4.30 and 934,615 Shares were issued as consideration in the Nordialog Asker Transaction to a contribution price per share at NOK 6.50.

³⁵ 743,059 Shares were issued as consideration in the InfraAdvice Acquisition to a contribution price per share at NOK 5.8071 and 1,333,332 Shares were issued as consideration in the Apro Acquisition to a contribution price per share at NOK 6.

set out in the PLCA, the amount of dividends paid may not exceed the amount recommended by the Board.

Techstep has not established any dividend policy. However, the Company's aim and focus is to enhance shareholder value and provide an active market in its shares.

Techstep has historically never declared or paid any dividends on its shares and does not anticipate paying any cash dividends for 2017 or the next few years. Techstep intends to retain future earnings, if any, to finance operations and the expansion of its business. Any future determination to pay dividends will depend on the Company's financial condition, results of operations and capital requirements.

Please refer to Section 12.3.2 "Certain aspects of Norwegian law" for a description of the manner of dividend payment.

12.3 The Articles of Association and certain aspects of Norwegian law

The information in this Section is a summary of certain corporate information and material information relating to the Shares and share capital of the Company and certain other shareholder matters, including summaries of certain provisions of the Company's Articles of Association and applicable Norwegian law in effect as of the date of this Information Memorandum. The summary does not purport to be complete and is qualified in its entirety by the Company's Articles of Association and applicable law.

12.3.1 The Articles of Association

The Company's Articles of Association are set out in Appendix 1 to this Information Memorandum. Below is a summary of provisions of the Articles of Association.

Objective of the Company

Pursuant to clause 3 of the Articles of Association, the objective of the Company is to engage in business operations within information and communication technology, develop and provide solutions and software within the mobility, digitalization as well as consulting business and everything that naturally belongs thereto, including owning shares and other securities in other companies

Registered office

The Company's registered office is in Oslo, Norway.

Share capital and nominal value

The Company's share capital is NOK 141,277,820 divided into 141,277,820 Shares, each Share with a nominal value of NOK 1.00.

Board of Directors

The Company's Board consists of 3 to 7 directors pursuant to further resolution passed by the general meeting.

Management

The Articles of Association do not contain any provisions regarding the Company's management.

Restrictions on transfer of Shares

The Articles of Association do not provide for any restrictions on the transfer of Shares, or a right of first refusal for the Company. Share transfers are not subject to approval by the Board.

General meetings

The ordinary general meeting shall discuss:

• Approval of the annual accounts and the directors' annual report, including distribution of dividend.
• Other matters that pursuant to the law or to the Articles of Associations are subject to discussion by the general meeting.

When documents concerning matters to be considered at general meetings of the Company have been made available to the shareholders on the Company's website, the Board may resolve not to send such documents to the shareholders. A shareholder may nonetheless contact the Company and demand to receive the documents free of charge.

Nomination committee

The Company shall have a nomination committee, consisting of 2-3 members. The nomination committees shall propose members to the Board and the remuneration of the board members.

Changes in the Company's capital

The Articles of Association do not contain restrictions or other conditions governing changes in the capital that deviate from conditions required by law.

12.3.2 Certain aspects of Norwegian law

General Meetings

Through the General Meeting, shareholders exercise supreme authority in a Norwegian company. In accordance with Norwegian law, the annual General Meeting of shareholders is required to be held each year on or prior to 30 June. Norwegian law requires that written notice of annual General Meetings setting forth the time of, the venue for and the agenda of the meeting be sent to all shareholders with a known address no later than 21 days before the annual General Meeting of Norwegian public limited liability company listed on a stock exchange or other regulated market shall be held, unless the articles of association stipulate a longer deadline, which is not currently the case for the Company.

In general, shareholders have the right to vote for the number of shares that they own, and which are registered in the Central Securities Depository (VPS) at the time of the General Meeting. If a shareholder has acquired shares, but these shares have not been registered in the VPS at the time of the General Meeting, the voting rights of the transferred shares may only be exercised if the acquisition is notified to the VPS and is proved at the General Meeting.

A shareholder may vote at the General Meeting either in person or by proxy appointed at their own discretion. Shareholders themselves, or represented by legal representative, planning to participate at the General Meeting, shall notify the Company within a deadline set by the Board in the notice.

Apart from the annual General Meeting, extraordinary General Meetings of shareholders may be held if the Board considers it necessary. An extraordinary General Meeting of shareholders must also be convened if, in order to discuss a specified matter, the auditor or shareholders representing at least 5% of the share capital demands this in writing. The requirements for notice and admission to the annual General Meeting also apply to extraordinary General Meetings. However, the annual General Meeting of a Norwegian public limited company may with a majority of at least two-thirds of the aggregate number of votes cast as well as at least two-thirds of the share capital represented at a General Meeting resolve that extraordinary General Meetings may be convened with a fourteen days' notice period until the next annual General Meeting provided the company has procedures in place allowing shareholders to vote electronically. The Company's Articles of Association does not permit electronic voting and extraordinary General Meetings may accordingly not be convened with a fourteen days' notice period, provided that the Company has established procedures for voting electronically at such meetings.

Voting rights–amendments to the Articles of Association

Each of the Company's Shares carries one vote. In general, decisions that shareholders are entitled to make under Norwegian law or the Company's Articles of Association may be made by a simple majority of the votes cast. In the case of elections or appointments, the person(s) who receive(s) the greatest number of votes cast are elected. However, as required under Norwegian law, certain decisions, including resolutions to waive preferential rights to subscribe in connection with any share issue against cash payment in the Company, to approve a merger or demerger of the Company, to amend Articles of Association, to authorise an increase or reduction in the share capital, to authorise an issuance of convertible loans or warrants by the Company or to authorise the Board to purchase the Shares and hold them as treasury shares or to dissolve the Company, must receive the approval of at least two-thirds of the aggregate number of votes cast as well as at least two-thirds of the share capital represented at a General Meeting. Norwegian law further requires that certain decisions, which have the effect of substantially altering the rights and preferences of any shares or class of shares, receive the approval by the holders of such shares or class of shares as well as the majority required for amending the Articles of Association.

Decisions that (i) would reduce the rights of some or all of the Company's shareholders in respect of dividend payments or other rights to assets or (ii) restrict the transferability of the Shares, require that at least 90% of the share capital represented at the General Meeting in question vote in favour of the resolution, as well as the majority required for amending the Articles of Association. Certain types of changes in the rights of shareholders require the consent of all shareholders affected thereby as well as the majority required for amending the Articles of Association.

Beneficial owners of the Shares that are registered in the name of a nominee are generally not entitled to vote under Norwegian law, nor is any person who is designated in the VPS register as the holder of such Shares as nominees. Investors should note that there are varying opinions as to the interpretation of the right to vote on nominee registered shares. If the shares in the Company are registered with a nominee, cf. section 4-10 of the Norwegian Public Limited Liability Companies Act, and the beneficial shareholder wants to attend the general meeting and vote for its shares, the Company's currently practise is that the beneficial shareholder must bring a written confirmation from the nominee confirming that the shareholder is the beneficial shareholder, and a statement from the shareholder confirming that he is the beneficial owner.

There are no quorum requirements that apply to the General Meetings.

Additional issuances and preferential rights

If the Company issues any new Shares, including bonus share issues, the Company's Articles of Association must be amended, which requires the same vote as other amendments to the Articles of Association. In addition, under Norwegian law, the Company's shareholders have a preferential right to subscribe for new Shares issued by the Company against cash payment. Preferential rights may be derogated from by resolution in a General Meeting passed by the same vote required to approve amending the Articles of Association. A derogation of the shareholders' preferential rights in respect of bonus issues requires the approval of all outstanding Shares.

The General Meeting may, by the same vote as is required for amending the Articles of Association, authorise the Board to issue new Shares, and to derogate from the preferential rights of shareholders in connection with such issuances. Such authorisation may be effective for a maximum of two years, and the nominal value of the Shares to be issued may not exceed 50% of the registered nominal share capital when the authorisation is registered with the Norwegian Register of Business Enterprises.

Under Norwegian law, the Company may increase its share capital by a bonus share issue, subject to approval by the Company's shareholders, by transfer from the Company's distributable equity or from the Company's share premium reserve and thus the share capital increase does not require any payment of a subscription price by the shareholders. Any bonus issues may be effected either by issuing new shares to the Company's existing shareholders or by increasing the nominal value of the Company's outstanding Shares.

Issuance of new Shares to shareholders who are citizens or residents of the United States upon the exercise of preferential rights may require the Company to file a registration statement in the United States under United States securities laws. Should the Company in such a situation decide not to file a registration statement, the Company's U.S. shareholders may not be able to exercise their preferential rights. If a U.S. shareholder is ineligible to participate in a rights offering, such shareholder may not receive the rights at all and the rights may be sold on the shareholder's behalf by the Company. The same may apply for certain other jurisdictions in which the participation in a future share capital increase or rights offering would be unlawful.

Minority rights

Norwegian law sets forth a number of protections for minority shareholders of the Company, including but not limited to those described in this paragraph and the description of General Meetings as set out above. Any of the Company's shareholders may petition Norwegian courts to have a decision of the Board or the Company's shareholders made at the General Meeting declared invalid on the grounds that it unreasonably favours certain shareholders or third parties to the detriment of other shareholders or the Company itself. The Company's shareholders may also petition the courts to dissolve the Company as a result of such decisions to the extent particularly strong reasons are considered by the court to make necessary dissolution of the Company.

Minority shareholders holding 5% or more of the Company's share capital have a right to demand in writing that the Board convene an extraordinary General Meeting to discuss or resolve specific matters. In addition, any of the Company's shareholders may in writing demand that the Company place an item on the agenda for any General Meeting as long as the Company is notified in time for such item to be included in the notice of the meeting. If the notice has been issued when such a written demand is presented, a renewed notice must be issued if the deadline for issuing notice of the General Meeting has not expired.

Rights of redemption and repurchase of Shares

The share capital of the Company may be reduced by reducing the nominal value of the Shares or by cancelling Shares. Such a decision requires the approval of at least two-thirds of the aggregate number of votes cast and at least two-thirds of the share capital represented at a General Meeting. Redemption of individual Shares requires the consent of the holders of the Shares to be redeemed.

The Company may purchase its own Shares provided that the Board has been granted an authorisation to do so by the General Meeting with the approval of at least two-thirds of the aggregate number of votes cast and at least two-thirds of the share capital represented at the meeting. The aggregate nominal value of treasury shares so acquired, and held by the Company must not exceed 10% of the Company's share capital, and treasury shares may only be acquired if the Company's distributable equity, according to the latest adopted balance sheet or an interim balance sheet, exceeds the consideration to be paid for the shares. The authorisation by the General Meeting of the Company's shareholders cannot be granted for a period exceeding two years.

Shareholder vote on certain reorganisations

A decision of the Company's shareholders to merge with another company or to demerge requires a resolution by the General Meeting of the shareholders passed by at least two-thirds of the aggregate votes cast and at least two-thirds of the share capital represented at the General Meeting. A merger plan, or demerger plan signed by the Board along with certain other required documentation, would have to be sent to all the Company's shareholders, or if the Articles of Association stipulate that, made available to the shareholders on the company's website, at least one month prior to the General Meeting to pass upon the matter.

Liability of members of the Board

Members of the Board owe a fiduciary duty to the Company and its shareholders. Such fiduciary duty requires that the Board Members act in the best interests of the Company when exercising their functions and exercise a general duty of loyalty and care towards the Company. Their principal task is to safeguard the interests of the Company.

Members of the Board may each be held liable for any damage they negligently or wilfully cause the Company. Norwegian law permits the General Meeting to discharge any such person from liability, but such discharge is not binding on the Company if substantially correct and complete information was not provided at the General Meeting passing upon the matter. If a resolution to discharge the Board Members from liability or not to pursue claims against such a person has been passed by the General Meeting with a smaller majority than that required to amend the Articles of Association, shareholders representing more than 10% of the share capital or, if there are more than 100 shareholders, more than 10% of the shareholders may pursue the claim on the Company's behalf and in its name. The cost of any such action is not the Company's responsibility but can be recovered from any proceeds the Company receives as a result of the action. If the decision to discharge any of the Company's directors from liability or not to pursue claims against the Board Members is made by such a majority as is necessary to amend the Articles of Association, the minority shareholders of the Company cannot pursue such claim in the Company's name.

Indemnification of Directors

Neither Norwegian law nor the Articles of Association contains any provision concerning indemnification by the Company of the Board. The Company is permitted to purchase insurance for the Board Members against certain liabilities that they may incur in their capacity as such.

Distribution of assets on liquidation

Under Norwegian law, the Company may be wound-up by a resolution of the Company's shareholders at the General Meeting passed by at least two-thirds of the aggregate votes cast and at least two-thirds of the share capital represented at the meeting. In the event of liquidation, the Shares rank equally in the event of a return on capital.

Dividends

Dividends may be paid in cash or in some instances in kind. The Companies Act provides several constraints on the distribution of dividends applicable to the Company:

• (i) Dividends are payable only out of distributable equity. Pursuant to section 8-1 of the Companies Act, the Company may only distribute dividends provided that, following such distribution, it retains net assets that provide coverage for the Company's share capital and other non-distributable equity pursuant to sections 3-2 and 3-3 of the Companies Act. The calculation shall be made on the basis of the balance sheet total in the Company's last approved annual accounts, such, however, that it is the registered share capital at the time the resolution is adopted that forms the basis for the calculation. A deduction shall also be made for credit and security etc. furnished pursuant to sections 8-7 to 8-10 of the Companies Act prior to the balance sheet date, which, pursuant to these provisions, shall be within the limits of the assets the Company may distribute as dividend. A deduction shall nonetheless not be made for credit and furnished security etc. that has been repaid or cancelled before the resolution is adopted, or for credit furnished to a shareholder insofar as the credit is cancelled by being offset against the dividend.
• (ii) In connection with the calculation above, a deduction shall be made for other transactions after the balance sheet date that, pursuant to the Companies Act, shall be within the limits of the assets the Company may utilize for the distribution of dividends.
• (iii) The Company may only distribute dividends provided that it has sound equity and liquidity following such distribution, cf. section 3-4 of the Companies Act.
• (iv) The amount of dividends the Company can distribute is calculated on the basis of the Company's annual financial statements, not the Group's consolidated financial statements.

Distribution of dividends is resolved by the general meeting on the basis of a proposal from the Board. The general meeting cannot resolve a larger dividend than proposed or accepted by the Board.

The shareholders have, through the entitlement to dividends, a right to share in the Company's profits. Shareholders holding in aggregate 5% or more of the Company's share capital have a right to request that the courts set a higher dividend than decided by the general meeting. The courts may set a higher dividend to the extent the resolved dividend is considered to be unreasonably low.

There is no time limit after which entitlement to dividends lapses under the Companies Act or the Company's Articles of Association. Further, there are no dividend restrictions or specific procedures for non-Norwegian resident shareholders in the Companies Act or the Company's Articles of Association.

Any future payments of dividends on the Shares will be denominated in NOK, as this is the currency that is currently supported by the VPS.

12.3.3 Shareholder agreements

The Company is not aware of any shareholders' agreements related to the Shares.

13 Securities trading in Norway

13.1 Introduction

The Oslo Børs was established in 1819 and is the principal market in which shares, bonds and other financial instruments are traded in Norway. As at 31 December 2016, the total capitalisation of companies listed on the Oslo Børs amounted to approximately NOK 2.121 billion. Shareholdings of non-Norwegian investors as a percentage of total market capitalisation as at 31 December 2016 amounted to approximately 36.6 %.

The Oslo Børs has entered into a strategic cooperation with the London Stock Exchange group with regards to, inter alia, trading systems for equities, fixed income and derivatives.

13.2 Trading of equities and settlement

Trading of equities on the Oslo Børs is carried out in the electronic trading system Millennium Exchange. This trading system is in use by all markets operated by the London Stock Exchange, including the Borsa Italiana, as well as by the Johannesburg Stock Exchange.

Official trading on the Oslo Børs takes place between 09:00 hours (CET) and 16:20 hours (CET) each trading day, with pre-trade period between 08:15 hours (CET) and 09:00 hours (CET), closing auction from 16:20 hours (CET) to 16:25 hours (CET) and a post-trade period from 16:25 hours (CET) to 17:30 hours (CET). Reporting of after exchange trades can be done until 17:30 hours (CET).

The settlement period for trading on the Oslo Børs is two trading days (T+2). This means that securities will be settled on the investor's account in VPS two days after the transaction, and that the seller will receive payment after two days.

Oslo Clearing ASA, a wholly-owned subsidiary of SIX x-clear AG, a company in the SIX group, has a license from the Norwegian FSA to act as a central clearing service, and has from 18 June 2010 offered clearing and counterparty services for equity trading on the Oslo Børs.

Investment services in Norway may only be provided by Norwegian investment firms holding a license under the Norwegian Securities Trading Act, branches of investment firms from an EEA member state or investment firms from outside the EEA that have been licensed to operate in Norway. Investment firms in an EEA member state may also provide cross-border investment services into Norway.

It is possible for investment firms to undertake market-making activities in shares listed in Norway if they have a license to this effect under the Norwegian Securities Trading Act, or in the case of investment firms in an EEA member state, a license to carry out market-making activities in their home jurisdiction. Such market-making activities will be governed by the regulations of the Norwegian Securities Trading Act relating to brokers' trading for their own account. However, such market-making activities do not as such require notification to the Norwegian FSA or the Oslo Børs except for the general obligation of investment firms that are members of the Oslo Børs to report all trades in stock exchange listed securities.

13.3 Information, control and surveillance

Under Norwegian law, the Oslo Børs is required to perform a number of surveillance and control functions. The Surveillance and Corporate Control unit of the Oslo Børs monitors all market activity on a continuous basis. Market surveillance systems are largely automated, promptly warning department personnel of abnormal market developments.

The Norwegian FSA controls the issuance of securities in both the equity and bond markets in Norway and evaluates whether the issuance documentation contains the required information and whether it would otherwise be unlawful to carry out the issuance.

Under Norwegian law, a company that is listed on a Norwegian regulated market, or has applied for listing on such market, must promptly release any inside information directly concerning the company (i.e. precise information about financial instruments, the issuer thereof or other matters which are likely to have a significant effect on the price of the relevant financial instruments or related financial instruments, and which are not publicly available or commonly known in the market). A company may, however, delay the release of such information in order not to prejudice its legitimate interests, provided that it is able to ensure the confidentiality of the information and that the delayed release would not be likely to mislead the public. The Oslo Børs may levy fines on companies violating these requirements.

13.4 The VPS and transfer of Shares

The Company's principal share register is operated through the VPS. The VPS is the Norwegian paperless centralised securities register. It is a computerised book-keeping system in which the ownership of, and all transactions relating to, Norwegian listed shares must be recorded. The VPS and the Oslo Børs are both wholly-owned by Oslo Børs VPS Holding ASA.

All transactions relating to securities registered with the VPS are made through computerised book entries. No physical share certificates are, or may be, issued. The VPS confirms each entry by sending a transcript to the registered shareholder irrespective of any beneficial ownership. To give effect to such entries, the individual shareholder must establish a share account with a Norwegian account agent. Norwegian banks, Norges Bank (being, Norway's central bank), authorised securities brokers in Norway and Norwegian branches of credit institutions established within the EEA are allowed to act as account agents.

As a matter of Norwegian law, the entry of a transaction in the VPS is prima facie evidence in determining the legal rights of parties as against the issuing company or any third party claiming an interest in the given security. A transferee or assignee of shares may not exercise the rights of a shareholder with respect to such shares unless such transferee or assignee has registered such shareholding or has reported and shown evidence of such share acquisition, and the acquisition is not prevented by law, the relevant company's articles of association or otherwise.

The VPS is liable for any loss suffered as a result of faulty registration or an amendment to, or deletion of, rights in respect of registered securities unless the error is caused by matters outside the VPS' control which the VPS could not reasonably be expected to avoid or overcome the consequences of. Damages payable by the VPS may, however, be reduced in the event of contributory negligence by the aggrieved party.

The VPS must provide information to the Norwegian FSA on an ongoing basis, as well as any information that the Norwegian FSA requests. Further, Norwegian tax authorities may require certain information from the VPS regarding any individual's holdings of securities, including information about dividends and interest payments.

13.5 Shareholder register

Under Norwegian law, shares are registered in the name of the beneficial owner of the shares. As a general rule, there are no arrangements for nominee registration and Norwegian shareholders are not allowed to register their shares in VPS through a nominee. However, foreign shareholders may register their shares in the VPS in the name of a nominee (bank or other nominee) approved by the Norwegian FSA. An approved and registered nominee has a duty to provide information on demand about beneficial shareholders to the company and to the Norwegian authorities. In case of registration by nominees, the registration in the VPS must show that the registered owner is a nominee. A registered nominee has the right to receive dividends and other distributions, but cannot vote in General Meetings on behalf of the beneficial owners.

13.6 Disclosure obligations

If a person's, entity's or consolidated group's proportion of the total issued shares and/or rights to shares in a company listed on a regulated market in Norway (with Norway as its home state, which will be the case for the Company) reaches, exceeds or falls below the respective thresholds of 5%, 10%, 15%, 20%, 25%, 1/3, 50%, 2/3 or 90% of the share capital or the voting rights of that company, the person, entity or group in question has an obligation under the Norwegian Securities Trading Act to notify the Oslo Børs and the issuer immediately. The same applies if the disclosure thresholds are passed due to other circumstances, such as a change in the company's share capital.

13.7 Insider trading

According to Norwegian law, subscription for, purchase, sale or exchange of financial instruments that are listed, or subject to the application for listing, on a Norwegian regulated market, or incitement to such dispositions, must not be undertaken by anyone who has inside information, as defined in section 3-2 of the Norwegian Securities Trading Act. The same applies to the entry into, purchase, sale or exchange of options or futures/forward contracts or equivalent rights whose value is connected to such financial instruments or incitement to such dispositions.

13.8 Mandatory offer requirement

The Norwegian Securities Trading Act requires any person, entity or consolidated group that becomes the owner of shares representing more than one-third of the voting rights of a company listed on a Norwegian regulated market (with the exception of certain foreign companies) to, within four weeks, make an unconditional general offer for the purchase of the remaining shares in that company. A mandatory offer obligation may also be triggered where a party acquires the right to become the owner of shares that, together with the party's own shareholding, represent more than one-third of the voting rights in the company and the Oslo Børs decides that this is regarded as an effective acquisition of the shares in question.

The mandatory offer obligation ceases to apply if the person, entity or consolidated group sells the portion of the shares that exceeds the relevant threshold within four weeks of the date on which the mandatory offer obligation was triggered.

When a mandatory offer obligation is triggered, the person subject to the obligation is required to immediately notify the Oslo Børs and the company in question accordingly. The notification is required to state whether an offer will be made to acquire the remaining shares in the company or whether a sale will take place. As a rule, a notification to the effect that an offer will be made cannot be retracted. The Offer and the Document required are subject to approval by the Oslo Børs before the offer is submitted to the shareholders or made public.

The offer price per share must generally be at least as high as the highest price paid or agreed by the offeror for the shares in the six-month period prior to the date the threshold was exceeded. If the acquirer acquires or agrees to acquire additional shares at a higher price prior to the expiration of the mandatory offer period, the acquirer is obliged to restate its offer at such higher price. A mandatory offer must be in cash or contain a cash alternative at least equivalent to any other consideration offered.

In case of failure to make a mandatory offer or to sell the portion of the shares that exceeds the relevant threshold within four weeks, the Oslo Børs may force the acquirer to sell the shares exceeding the threshold by public auction. Moreover, a shareholder who fails to make an offer may not, as long as the mandatory offer obligation remains in force, exercise rights in the company, such as voting in a General Meeting, without the consent of a majority of the remaining shareholders. The shareholder may, however, exercise his/her/its rights to dividends and pre-emption rights in the event of a share capital increase. If the shareholder neglects his/her/its duty to make a mandatory offer, the Oslo Børs may impose a cumulative daily fine that runs until the circumstance has been rectified.

Any person, entity or consolidated group that owns shares representing more than one-third of the votes in a company listed on a Norwegian regulated market (with the exception of certain foreign companies) is obliged to make an offer to purchase the remaining shares of the company (repeated offer obligation) if the person, entity or consolidated group through acquisition becomes the owner of shares representing 40%, or more of the votes in the company. The same applies correspondingly if the person, entity or consolidated group through acquisition becomes the owner of shares representing 50% or more of the votes in the company. The mandatory offer obligation ceases to apply if the person, entity or consolidated group sells the portion of the shares which exceeds the relevant threshold within four weeks of the date on which the mandatory offer obligation was triggered.

Any person, entity or consolidated group that has passed any of the above mentioned thresholds in such a way as not to trigger the mandatory bid obligation, and has therefore not previously made an offer for the remaining shares in the company in accordance with the mandatory offer rules is, as a main rule, obliged to make a mandatory offer in the event of a subsequent acquisition of shares in the company.

13.9 Compulsory acquisition

Pursuant to the PLCA and the Norwegian Securities Trading Act, a shareholder who, directly or through subsidiaries, acquires shares representing 90% or more of the total number of issued shares in a Norwegian public limited company, as well as 90% or more of the total voting rights, has a right, and each remaining minority shareholder of the company has a right to require such majority shareholder, to effect a compulsory acquisition for cash of the shares not already owned by such majority shareholder. Through such compulsory acquisition the majority shareholder becomes the owner of the remaining shares with immediate effect.

If a shareholder acquires shares representing more than 90% of the total number of issued shares, as well as more than 90% of the total voting rights, through a voluntary offer in accordance with the Securities Trading Act, a compulsory acquisition can, subject to the following conditions, be carried out without such shareholder being obliged to make a mandatory offer: (i) the compulsory acquisition is commenced no later than four weeks after the acquisition of shares through the voluntary offer, (ii) the price offered per share is equal to or higher than what the offer price would have been in a mandatory offer, and (iii) the settlement is guaranteed by a financial institution authorised to provide such guarantees in Norway.

A majority shareholder who effects a compulsory acquisition is required to offer the minority shareholders a specific price per share, the determination of which is at the discretion of the majority shareholder. However, where the offeror, after making a mandatory or voluntary offer, has acquired more than 90% of the voting shares of a company and a corresponding proportion of the votes that can be cast at the General Meeting, and the offeror pursuant to section 4-25 of the PLCA completes a compulsory acquisition of the remaining shares within three months after the expiry of the offer period, it follows from the Norwegian Securities Trading Act that the redemption price shall be determined on the basis of the offer price for the mandatory/voluntary offer unless specific reasons indicate another price.

Should any minority shareholder not accept the offered price, such minority shareholder may, within a specified deadline of not less than two months, request that the price be set by a Norwegian court. The cost of such court procedure will, as a general rule, be the responsibility of the majority shareholder, and the relevant court will have full discretion in determining the consideration to be paid to the minority shareholder as a result of the compulsory acquisition.

Absent a request for a Norwegian court to set the price or any other objection to the price being offered, the minority shareholders would be deemed to have accepted the offered price after the expiry of the specified deadline.

14 TAXATION

Set out below is a summary of certain Norwegian tax matters related to an investment in the Company. The summary regarding Norwegian taxation is based on the laws in force in Norway as at the date of this Information Document, which may be subject to any changes in law occurring after such date. Such changes could possibly be made on a retrospective basis.

The following summary does not purport to be a comprehensive description of all the tax considerations that may be relevant to a decision to purchase, own or dispose of the shares in the Company. Shareholders who wish to clarify their own tax situation should consult with and rely upon their own tax advisors. Shareholders resident in jurisdictions other than Norway and shareholders who cease to be resident in Norway for tax purposes (due to domestic tax law or tax treaty) should specifically consult with and rely upon their own tax advisors with respect to the tax position in their country of residence and the tax consequences related to ceasing to be resident in Norway for tax purposes.

Please note that for the purpose of the summary below, a reference to a Norwegian or non-Norwegian shareholder refers to the tax residency rather than the nationality of the shareholder.

14.1 Taxation of dividends

Norwegian Personal Shareholders.

Dividends distributed to shareholders who are individuals resident in Norway for tax purposes ("Norwegian Personal Shareholders") are taxable in Norway for such shareholders at an effective tax rate of 29.76% to the extent the dividend exceeds a tax-free allowance (i.e. dividends received, less the tax free allowance, shall be multiplied by 1.24 which are then included as ordinary income taxable at a flat rate of 24%, increasing the effective tax rate on dividends received by Norwegian Personal Shareholders to 29.76%).

The allowance is calculated on a share-by-share basis. The allowance for each share is equal to the cost price of the share multiplied by a risk free interest rate based on the effective rate after tax of interest on treasury bills (Nw.: statskasseveksler) with three months maturity. The allowance is calculated for each calendar year, and is allocated solely to Norwegian Personal Shareholders holding shares at the expiration of the relevant calendar year.

Norwegian Personal Shareholders who transfer shares will thus not be entitled to deduct any calculated allowance related to the year of transfer. Any part of the calculated allowance one year exceeding the dividend distributed on the share ("excess allowance") may be carried forward and set off against future dividends received on, or gains upon realisation, of the same share.

Norwegian Corporate Shareholders.

Dividends distributed to shareholders who are limited liability companies (and certain similar entities) resident in Norway for tax purposes ("Norwegian Corporate Shareholders"), are effectively taxed at rate of 0.72% (3% of dividend income from such shares is included in the calculation of ordinary income for Norwegian Corporate Shareholders and ordinary income is subject to tax at a flat rate of 24%).

Non-Norwegian Personal Shareholders.

Dividends distributed to shareholders who are individuals not resident in Norway for tax purposes ("Non-Norwegian Personal Shareholders"), are as a general rule subject to withholding tax at a rate of 24%. The withholding tax rate of 24% is normally reduced through tax treaties between Norway and the country in which the shareholder is resident. The withholding obligation lies with the company distributing the dividends and the Company assumes this obligation.

Non-Norwegian Personal Shareholders resident within the EEA for tax purposes may apply individually to Norwegian tax authorities for a refund of an amount corresponding to the calculated tax-free allowance on each individual share (please see "Taxation of dividends – Norwegian Personal Shareholders" above). However, the deduction for the tax-free allowance does not apply in the event that the withholding tax rate, pursuant to an applicable tax treaty, leads to a lower taxation on the dividends than the withholding tax rate of 24% less the tax-free allowance.

If a Non-Norwegian Personal Shareholder is carrying on business activities in Norway and the shares are effectively connected with such activities, the shareholder will be subject to the same taxation of dividends as a Norwegian Personal Shareholder, as described above.

Non-Norwegian Personal Shareholders who have suffered a higher withholding tax than set out in an applicable tax treaty may apply to the Norwegian tax authorities for a refund of the excess withholding tax deducted.

Non-Norwegian Corporate Shareholders.

Dividends distributed to shareholders who are limited liability companies (and certain other entities) not resident in Norway for tax purposes ("Non-Norwegian Corporate Shareholders"), are as a general rule subject to withholding tax at a rate of 24%. The withholding tax rate of 24% is normally reduced through tax treaties between Norway and the country in which the shareholder is resident.

Dividends distributed to Non-Norwegian Corporate Shareholders resident within the EEA for tax purposes are exempt from Norwegian withholding tax provided that the shareholder is the beneficial owner of the shares and that the shareholder is genuinely established and performs genuine economic business activities within the relevant EEA jurisdiction.

If a Non-Norwegian Corporate Shareholder is carrying on business activities in Norway and the shares are effectively connected with such activities, the shareholder will be subject to the same taxation of dividends as a Norwegian Corporate Shareholder, as described above.

Non-Norwegian Corporate Shareholders who have suffered a higher withholding tax than set out in an applicable tax treaty may apply to the Norwegian tax authorities for a refund of the excess withholding tax deducted.

Nominee registered shares will be subject to withholding tax at a rate of 24% unless the nominee has obtained approval from the Norwegian Tax Directorate for the dividend to be subject to a lower withholding tax rate. To obtain such approval the nominee is required to file a summary to the tax authorities including all beneficial owners that are subject to withholding tax at a reduced rate.

The withholding obligation in respect of dividends distributed to Non-Norwegian Corporate Shareholders and on nominee registered shares lies with the company distributing the dividends and the Company assumes this obligation.

14.2 Taxation of capital gains on realisation of shares

Norwegian Personal Shareholders.

Sale, redemption or other disposal of shares is considered a realisation for Norwegian tax purposes. A capital gain or loss generated by a Norwegian Personal Shareholder through a disposal of shares is taxable or tax deductible in Norway. The effective tax rate on gain or loss related to shares realised by Norwegian Personal Shareholders is currently 29.76%; i.e. capital gains (less the tax free allowance) and losses shall be multiplied by 1.24 which are then included in or deducted from the Norwegian Personal Shareholder's ordinary income in the year of disposal. Ordinary income is taxable at a flat rate of 24%, increasing the effective tax rate on gains/losses realised by Norwegian Personal Shareholders to 29.76%.

The gain is subject to tax and the loss is tax deductible irrespective of the duration of the ownership and the number of shares disposed of.

The taxable gain/deductible loss is calculated per share as the difference between the consideration for the share and the Norwegian Personal Shareholder's cost price of the share, including costs incurred in relation to the acquisition or realisation of the share. From this capital gain, Norwegian Personal Shareholders are entitled to deduct a calculated allowance provided that such allowance has not already been used to reduce taxable dividend income. Please refer to Section 14.1 "Taxation of dividends — Norwegian Personal Shareholders" above for a description of the calculation of the allowance. The allowance may only be deducted in order to reduce a taxable gain, and cannot increase or produce a deductible loss, i.e. any unused allowance exceeding the capital gain upon the realisation of a share will be annulled.

If the Norwegian Personal Shareholder owns shares acquired at different points in time, the shares that were acquired first will be regarded as the first to be disposed of, on a first-in first-out basis.

Norwegian Corporate Shareholders.

Norwegian Corporate Shareholders are exempt from tax on capital gains derived from the realisation of shares qualifying for participation exemption, including shares in the Company. Losses upon the realisation and costs incurred in connection with the purchase and realisation of such shares are not deductible for tax purposes.

Non-Norwegian Personal Shareholders.

Gains from the sale or other disposal of shares by a Non-Norwegian Personal Shareholder will not be subject to taxation in Norway unless the Non-Norwegian Personal Shareholder holds the shares in connection with business activities carried out or managed from Norway.

Non-Norwegian Corporate Shareholders.

Capital gains derived by the sale or other realisation of shares by Non-Norwegian Corporate Shareholders are not subject to taxation in Norway.

14.3 Net wealth tax

The value of shares is included in the basis for the computation of net wealth tax imposed on Norwegian Personal Shareholders. Currently, the marginal net wealth tax rate is 0.85% of the value assessed. The value for assessment purposes for listed shares is equal to the listed value as of 1 January in the year of assessment (i.e. the year following the relevant fiscal year).

Norwegian Corporate Shareholders are not subject to net wealth tax.

Shareholders not resident in Norway for tax purposes are not subject to Norwegian net wealth tax. Non-Norwegian Personal Shareholders can, however, be taxable if the shareholding is effectively connected to the conduct of trade or business in Norway.

14.4 VAT and transfer taxes

No VAT, stamp or similar duties are currently imposed in Norway on the transfer or issuance of shares.

14.5 Inheritance tax

A transfer of shares through inheritance or as a gift does not give rise to inheritance or gift tax in Norway.

15 SELLING AND TRANSFER RESTRICTIONS

The Shares may, in certain jurisdictions, be subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable securities laws and regulations. Investors should be aware that they may be required to bear the financial risks of this investment for an indefinite period of time. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This Information Memorandum does not constitute an offer or solicitation to buy, subscribe or sell the securities described herein, and no securities are being offered or sold pursuant to this Information Memorandum in any jurisdiction.

United States

No shares are being offered or sold, directly or indirectly, in or into the United States pursuant to this Information Memorandum and no shares have been, or will be, registered under the U.S. securities act, or under the securities laws of any state of the United States and, accordingly, the shares may not be offered or sold, directly or indirectly, in or into the United States (as defined in regulation S under the U.S. securities act), unless registered under the U.S. securities act or pursuant to an exemption from the registration requirements of the U.S. securities act and in compliance with any applicable state securities laws of the United States.

16 Additional information

16.1 Documents on display

Copies of the following documents will be available for inspection at the Company's offices at Brynsveien 3, 0667 Oslo, Norway, during normal business hours from Monday to Friday each week (except public holidays) for a period of twelve months from the date of this Information Memorandum.

• The Company's Articles of Association.
• Financial statements for the Company and its subsidiaries.
• This Information Memorandum.

16.2 Incorporated by reference

The following table sets forth an overview of documents incorporated by reference in this Information Memorandum. No information other that the information referred to in the table below is incorporated by reference. Where parts of a document is referenced, and not the document as a whole, the remainder of such document is either deemed irrelevant to an investor in the context of the requirements if this Information Memorandum, or the corresponding information is covered elsewhere in this Information Memorandum.

Sections in
the	Disclosure
Information	requirements of the
Memorandu	Information
m	Memorandum	Reference document and link

10	Audited historical financial information	Techstep ASA – Annual Report 2016:
		http://techstep.no/wp content/uploads/2017/04/Techstep-Annual-Report 2016_signed.pdf
		Techstep ASA – Annual Report 2015
		http://techstepsite.wpengine.com/wp content/uploads/2016/04/Birdstep_AnnualReport_2015. pdf
10	Unaudited historical financial information	Techstep ASA – Interim Report first quarter 2017
		http://techstep.no/wp
		content/uploads/2017/05/Techstep-Q1-2017-report.pdf

17 Definitions and glossary of terms

Term	Definition
AAA	Authentication, authorisation & accounting.
API	Application programming interface.
Apro	Apro Tele and Data AS.
Apro Acquisition	The acquisition by Techstep of all shares in Apro, completed on 3
	April 2017.
Articles of Association	The Company's current articles of association.
ARPU	Average revenue per user
B2B	Business to business.
B2C	Business to customer.
Birdstep AB	Birdstep Technology AB.
BKE	BKE TeleCom AB.
BKE Acquisition	The acquisition by Techstep of all shares in BKE, as governed by a
	transaction agreement dated 3 July 2017 and intended to be
	consummated on 31 August 2017.
BKE Consideration Shares	4,729,893 Shares in the Company to be issued to the Sellers within
	seven business days from the date of the BKE Closing.
BKE Closing	The consummation of the BKE Acquisition, which is expected to be
	on 31 August 2017.
BKE SPA	The transaction agreement for the BKE Acquisition, dated 3 July
	2017.
Board or Board of Directors	The board of directors of the Company, as described in Section 9.2
	"Board of Directors".
Board Members	The members of the Board of Directors and a Board Member
	means any of them.
Company	Techstep ASA.
Consideration Shares	51,311,871 consideration shares issued in the Mytos Acquisition,
	the Apro Acquisition, the InfraAdvice Acquisition, the Teki
	Gruppen Transaction, Teki Solutions Transaction and Nordialog
	Asker Transaction.

DnR	The Norwegian Institute of Public Accounts.
EBIT or adjusted EBIT	Earnings Before Interests and Taxes, and if adjusted, adjusted for
	transaction costs and one-offs.
EBITA or adjusted EBITA	Earnings Before Interests, Taxes and Amortization, and if adjusted,
	adjusted for transaction costs and one-offs.
EBITDA or adjusted EBITDA	Earnings Before Interests, Taxes, Depreciation and Amortization,
	and if adjusted, adjusted for transaction costs and one-offs.
EMM	Enterprise mobility management.
Executive Management	The executive management of the Company, as described in
	Section 9.3 "Executive Management".
Forward Looking	Means statements relating to the Company's business and the
Statements	sectors in which it operates. Forward Looking Statements include
	all statements that are not historical facts, and can be identified
	by words such as (what follows are examples without excluding
	words having the same meaning) "anticipates", "believes",
	"expects", intends, "may", "projects", "should", or the negatives of
	these terms or similar expressions. Please refer to Section 4.2
	"Forward looking statements" for further information.
FTE	Full-Time Equivalent employees.
General Meeting	The general meeting of the shareholders of Techstep.
Group	Techstep together with its subsidiaries.
Hardware and subscriptions	The mobile hardware and subscriptions business of Techstep, as
segment	further described in Section 7.2 "Hardware and subscription".
HetNet	Heterogeneous Network.
HSE	Health, safety and environment.
IFRS	International Financial Reporting Standards as adopted by the
	European Union.
Information Memorandum	This Information Memorandum of 16 August 2017 and its
	appendices.
InfraAdvice	InfraAdvice Sweden AB.
InfraAdvice Acquisition	The acquisition by Techstep of all shares in InfraAdvice from
	SysTown International AB, completed on 3 April 2017.
ISIN	International Securities Identification Number.
Kjedehuset	Kjedehuset AS.
MaaS	Mobility-as-a-Service.
Mergers	Ongoing mergers between Zono AS and Teki Solutions and
	between Nordialog Oslo AS, Buskerud Mobil AS and Nordialog
	Asker AS which are expected to be effective from September 2017.
Mytos	Mytos AS.
Mytos Acquisition	The transaction where Techstep acquired 100% of the shares in
	Mytos from Mytos Systems AS, completed on 21 February 2017.
Mytos Consideration Shares	11,666,667 shares issued in the Mytos Acquisition.
NOK or Norwegian kroner	The lawful currency of Norway.
Nordialog Asker	Nordialog Asker AS.
Nordialog Asker Transaction	The transaction where Techstep acquired the remaining 50% of
	the shares in Nordialog Asker, completed on 28 February 2017.
Nordialog Oslo	Nordialog Oslo AS.

Norwegian Corporate	Shareholders who are limited liability companies (and certain
Shareholders	similar entities) resident in Norway for tax purposes.
Norwegian FSA	The Financial Supervisory Authority of Norway (Nw.
	Finanstilsynet).
Norwegian Personal	Shareholders who are individuals resident in Norway for tax
Shareholders	purposes.
Norwegian Securities	Norwegian Securities Trading Act of 29 June 2007 no. 75 (Nw.
Trading Act	verdipapirhandelloven).
Oslo Børs	The Oslo Stock Exchange, operated by Oslo Børs ASA.
PBX	Private Branch Exchange which is a business-grade phone system.
PLCA	The Norwegian public limited liability companies act of 13 June
	1997 no. 45.
Register of Business	The Norwegian Register of Business Enterprises (Norwegian:
Enterprises	Foretaksregisteret).
SaaS	Software as a Service.
SGAAP	Swedish Generally Accepted Accounting Principles
Share(s)	The shares in the capital of Techstep ASA, each having a nominal
	value of NOK 1.00 and a Share means any of them.
SLA	Service Level Agreement.
SmartWorks	SmartWorks AS.
Smith Micro	Smith Micro Software, Inc.
Solutions segment	The mobility software and solutions segment of Techstep, as
	further described in Section 7.3 "Solutions".
Techstep	Techstep ASA.
Techstep Finance	Techstep Finance AS.
Teki Gruppen Transaction	The transaction where Techstep acquired 53.94% of the shares
	and related shareholder loans in Teki Solutions from Teki Gruppen
	AS, completed on 4 November 2016.
Teki Solutions	Teki Solutions AS
Teki Solutions Transaction	The transaction where Techstep acquired the remaining 21.84% of
	the shares in Teki Solutions, completed on 28 February 2017.
Telering	Telering AS.
TEM	Telecom expense management.
The Zono Transaction	The acquisition of 100 % of the shares in Zono AS by Techstep
	completed on 15 September 2016.
VPS	The Norwegian Central Securities Depository (Norwegian:
	Verdipapirsentralen).
VPS Registrar	DNB Bank ASA.
UCaaS	Unified Communication as a Service.

APPENDIX 1:

ARTICLES OF ASSOCIATION

03/04/2017

VEDTEKTER FOR TECHSTEP ASA

1.

Selskapet er et allmennaksjeselskap. Selskapets foretaksnavn er Techstep ASA.

2.

Selskapets forretningskontor er i Oslo kommune.

3.

Selskapets formål er å drive virksomhet innen informasjons- og kommunikasjonsteknologi, utvikle og tilby løsninger og programvare innenfor mobilitet, digitalisering samt konsulentvirksomhet og alt som hører naturlig dertil, herunder eie aksjer og andre verdipapirer i andre selskaper.

4.

Selskapets aksjekapital er kr 141.277.820 fordelt på 141.277.820 aksjer hver pålydende kr 1,00.

5.

Selskapets styre skal bestå av 3-7 medlemmer. Selskapets firma tegnes av styrets leder sammen med et av styrets medlemmer.

1. Selskapet skal ha en valgkomité på 2-3 medlemmer valgt av generalforsamlingen. Etter innstilling fra styret fastsetter generalforsamlingen godtgjørelsen til valgkomiteens medlemmer.

Valgkomiteen skal foreslå kandidater til styret, samt honorarer til styrets medlemmer. Valgkomiteens innstillinger skal begrunnes.

Valgkomiteens medlemmer velges for to år av gangen.

Den ordinære generalforsamling skal:

• A. Godkjenne årsregnskapet og årsberetningen, herunder utdeling av utbytte.
• B. Behandle andre saker som etter lov eller vedtektene hører under generalforsamlingen.

7.

8.

Dokumenter som gjelder saker som skal behandles på generalforsamlingen trenger ikke sendes til aksjeeierne dersom dokumentene er gjort tilgjengelige for aksjeeierne på selskapets internettsider. Dette gjelder også dokumenter som etter lov skal inntas i eller vedlegges innkallingen til generalforsamlingen. En aksjeeier kan likevel kreve å få tilsendt dokumenter som gjelder saker som skal behandles på generalforsamlingen.

APPENDIX 2:

INDEPENDENT ASSURANCE REPORT ON PRO FORMA FINANCIAL INFORMATION

BDO AS Munkedamsveien 45 P.O. Box 1704 Vika
NO-0121 Oslo

To the Board of Directors of Techstep ASA

Independent Assurance Report on the Pro Forma Financial Information

We have completed our assurance engagement to report on the compilation of unaudited pro forma financial information of Techstep ASA (the "company") by the Board of Directors and management of the company. The pro forma financial information consists of the unaudited pro forma financial positions as at 31 December 2016, the pro forma statement of comprehensive income for the period ended 31 December 2016, and related notes as set out in section 11 of the information memorandum dated 14 August 2016 issued by the Company.

The proforma financial information has been compiled to comply with the requirements in section 3.5.2.6 of the "Continuing Obligations of Stock Exchange Listed Companies" issued by Oslo Børs (Oslo Stock Exchange). The applicable criteria on the basis of which the Company have compiled the pro forma financial information are specified in the EU Regulation No 809/2004 as included in the Norwegian Securities Trading Act.

The pro forma financial information has been compiled by the Company to illustrate the impact of the transaction set out in section 11 on the company's financial position as at 31 December 2016, and the company's financial performance for the period ended 31 December 2016 as if the transaction had taken place at 1 January 2016. As part of this process, information about the company's financial position and financial performance has been extracted by the Company from the Company's financial statements for the period ended 31 December 2016, on which an auditor report has been published.

The Board of Directors' and Management's Responsibility for the Pro Forma Financial Information

The board of Directors' and Management are responsible for compiling the pro forma financial information on the basis of relevant accounting policies described in the information memorandum.

Practitioner's Responsibilities

Our responsibility is to express an opinion, as required by Annex II item 7 of EU Regulation No 809/2004 about whether the pro forma financial information has been compiled, by the Company on the basis of accounting and relevant accounting policies described in the information memorandum.

We conducted our engagement in accordance with International Standard on Assurance Engagements (ISAE) 3420, Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus, issued by the International Auditing and Assurance Standards Board. This standard requires that the practitioner comply with ethical requirements and plan and perform procedures to obtain reasonable assurance about whether the Company has compiled the pro forma financial information on the basis of accounting and relevant accounting policies described in the information memorandum section 11. Our work primarily consisted of comparing the unadjusted financial information with the source documents as described in section 11 of the information memorandum, considering the evidence supporting the adjustments and discussing the Pro Forma Financial Information with management of the Company.

For purposes of this engagement, we are not responsible for updating or reissuing any reports or opinions on any historical financial information used in compiling the pro forma financial information, nor have we, in the course of this engagement, performed an audit or review of the financial information used in compiling the pro forma financial information.

The purpose of pro forma financial information included in an information memorandum is solely to illustrate the impact of a significant event or transaction on unadjusted financial information of the entity as if the event had occurred or the transaction had been undertaken at an earlier date selected for purposes of the illustration. Accordingly, we do not provide any assurance that the actual outcome of the transaction would have been as presented.

A reasonable assurance engagement to report on whether the pro forma financial information has been compiled, on the basis of the applicable criteria involves performing procedures to assess whether the applicable criteria used by the Company in the compilation of the pro forma financial information, provide a reasonable basis for presenting the significant effects directly attributable to the event or transaction, and to obtain sufficient appropriate evidence about whether:

• The related pro forma adjustments give appropriate effect to those criteria; and
• The pro forma financial information reflects the proper application of those adjustments to the unadjusted financial information.
• The pro forma financial information has been compiled on a basis consistent with the accounting policies of the Company.

The procedures selected depend on the practitioner's judgment, having regard to the practitioner's understanding of the nature of the company, the event or transaction in respect of which the pro forma financial information has been compiled, and other relevant engagement circumstances.

The engagement also involves evaluating the overall presentation of the pro forma financial information.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion:

• a) The pro forma financial information has been properly compiled on the basis stated in section 11 of the information memorandum.
• b) That basis is consistent with the accounting policies of the company.

This report is issued for the sole purpose of providing assurance on the pro forma financial information included in the information memorandum required by the Oslo Stock Exchange. This report should not be used or relied upon for any purpose other than the information memorandum.

Oslo, 14 August 2017 BDO AS

Yngve Giethammer State Authorized Public Accountant (Norway)

APPENDIX 3:

AUDITED HISTORICAL FINANCIAL INFORMATION FOR BKE TELECOM AB FOR THE FINANCIAL YEAR 2015/2016

$QH$

Inkom Bolagsverket $2016 - 06 - 01$

BKE TeleCom AB Org nr 556465-1551

Årsredovisning för räkenskapsåret 2015-05-01 - 2016-04-30

Styrelsen och verkställande direktören avger följande årsredovisning.

	Innehåll	Sida
	- förvaltningsberättelse	2
	- resultaträkning
	- balansräkning	6
	- kassaflödesanalys	8
٠	noter	C

Om inte annat särskilt anges, redovisas alla belopp i kronor. Uppgifter inom parentes avser föregående år.

Undertecknad styrelseledamot och VD i BKE TeleCom AB intygar, dels att denna kopia av årsredovisningen överrensstämmer med originalet, dels att resultaträkningen och balansräkningen fastställts på årsstämma den 2016-05-27.

$\ddot{\cdot}$

Årsstämman beslöt att godkänna styrelsens förslag till vinstdisposition.

Karlstad den 2016-05-27

Thomas Gustavsson

$\ddot{\phantom{1}}$

BKE TeleCom AB Org nr 556465-1551

Årsredovisning för räkenskapsåret 2015-05-01 - 2016-04-30

Styrelsen och verkställande direktören avger följande årsredovisning.

Innehåll	Sida
förvaltningsberättelse $\blacksquare$	$\overline{2}$
resultaträkning $\blacksquare$	5
- balansräkning	6
- kassaflödesanalys	8
noter $\qquad \qquad \blacksquare$	9

Om inte annat särskilt anges, redovisas alla belopp i kronor. Uppgifter inom parentes avser föregående år.

Förvaltningsberättelse

Allmänt om verksamheten

Bolaget levererar helhetslösningar inom telefoni till företag och offentliga myndigheter. Lösningarna är alltid anpassade efter kundens situation och behov och utifrån ett oberoende perspektiv där alla delar skall fungera och samverka ihop. Vidare erbjuder bolaget vägledande kunskap för köp, hantering och drift av produkter och tjänster inom området. Främst med fokus på livscykelhanering.

Verksamheten bedrivs i egna lokaler på Wåxnäs handelsområde i Karlstad. Tyngden i bolagets omsättning ligger i avtal med offentliga myndigheter gällande leverans av hårdvara, tjänster och lösningar inom mobilitet. Totalt under verksamhetsåret 2015/16 tecknades nya avtal med 9 kommuner, 11 statliga myndigheter och ett landsting. Totalt har bolaget gällande avtal med 67 kommuner, 28 statliga myndigheter och 2 landsting. Många av avtalen är under flera år vilket ger ett positivt läge inför nästkommande verksamhetsår.

Väsentliga händelser under och efter räkenskapsåret

Bolaget har under året vidareutvecklat vidare sin egen växeltjänst i molnet. Genom denna kan vi, som oberoende operatör, möta kundens behov samt hantera leverans, utbildning och support med egen personal. Under verksamhetsåret har 85 nya företag valt lösningen med ett totalt ordervärde på ca 9 miljoner. Avtalstiden är vanligtvis 36 månader. Medelkunden har under året också vuxit vilket är ett tydligt tecken på att allt större företag väljer lösningen. Totalt har nu bolaget ca 320 företag som har gällande avtal för sin telefoni via bolagets växeltjänst. Detta stärker bolagets strategi att verka som en både produkt- och tjänsteleverantör inom telekommunikation. Bolaget ser en fortsatt mycket god tillströmning av nya kunder till denna tjänst under nästa år. Under året ökade tjänsteförsäljningen totalt med ca 110 % och där ingår förutom växeltjänster, servicetjänster och supporttjänster också logistiktjänster såsom t.ex., säkerhetstjänster och konfigureringar av mobiltelefoner. Tjänsteförsäljningen och produktförsäljningen har goda marginaler. Fördelningen mellan produkt och tjänsteförsäljning är 87%-13%.

Webshopen utvecklades ytterligare och kan idag anses som en av Sveriges absolut främsta inom området. Bolaget har utvecklat en rad ytterligare funktioner anpassade för befintliga och nya kunder samt har integrerat lösningar mot flera av de befintliga kundernas inköpssystem. Utgångpunkten är att hantera orders så automatiskt som möjligt både för kund och bolaget.

Under året har ytterligare rekryteringar gjorts för att genomföra bolagets övergripande mål att bygga världens bästa support. Supporten beräknas vara den konkurrensfördel som bolaget fortsättningsvis skall bygga sin grund omkring. Bolaget har även under året genomfört större investeringar i arbets- och säljsystem, IT-infrastruktur och säkerhet för att kunna ge kunden en ännu bättre upplevelse genom kontakt med supporten och övriga organisationen. I fastigheten har en våning byggts till för att ge 8 arbetsplatser till för support- och säljavdelning.

Slutligen har bolaget under året arbetat vidare med fokus på trivsel och arbetsmiljöfrågor. Bolaget har en låg personalomsättning. Vi har under året fortsatt arbeta aktivt med en trivselgrupp som sett till att träning, rätt ergonomi, roligt på jobbet och gemensamma aktiviteter stärkt gruppen vilket

ökat sammanhållningen ytterligare. Resultatmässigt har bolaget budgeterat för en ökning kommande verksamhetsår.

Moderföretag

Bolaget är ett helägt dotterbolag till BKE Holding AB, org.nr.556766-4775 med säte i Karlstad.

Flerårsöversikt

		2015/16	2014/15	2012/13	2011/12
Nettoomsättning	tkr	239 125	166 927	109 783	86 638
Resultat efter finansiella poster	tkr	16 458	12 604	4 0 0 2	1620
Soliditet	$\%$	32.2	42,7	36,0	31,0

Resultatdisposition

Till årsstämmans förfogande står följande vinstmedel:

Balanserat resultat Årets resultat	5 1 7 7 1 6 3 13 566 333
Totalt	18 743 496

Styrelsen och verkställande direktören föreslår att vinstmedlen disponeras enligt följande

Utdelning till ägarna Balanseras i ny räkning	4 743 496	14 000 000 $/60527$
Totalt	18 743 496
Utdelning per aktie	14 000

Utdelningen kommer att utbetalas genom skuldföring dagen efter årsstämman.

Styrelsens yttrande över den föreslagna vinstutdelningen

Den föreslagna utdelningen reducerar bolagets soliditet till 16,5 procent. Soliditeten är mot bakgrund av att bolagets verksamhet fortsatt bedrivs med lönsamhet betryggande. Likviditeten i bolaget bedöms kunna upprätthållas på en likaledes betryggande nivå.

Styrelsens uppfattning är att den föreslagna utdelningen ej hindrar bolaget från att fullgöra sina

förpliktelser på kort och lång sikt, ej heller att fullgöra erforderliga investeringar. Den föreslagna utdelningen kan därmed försvaras med hänsyn till vad som anförs i ABL 17 kap 3 $\S$ 2-3 st. (försiktighetsregeln).

BKE TeleCom AB
556465-1551

Resultaträkning	Not	2015-05-01 $-2016 - 04 - 30$	2014-05-01 $-2015 - 04 - 30$
Nettoomsättning	1	239 125 424	166 926 810
Övriga rörelseintäkter		516848	$-368252$
		239 642 272	166 558 558
Rörelsens kostnader
Råvaror och förnödenheter		-191 763 044	$-126639635$
Övriga externa kostnader		-7 409 179	$-6168943$
Personalkostnader	3	-22 987 520	$-20064579$
Av- och nedskrivningar av materiella och
immateriella anläggningstillgångar		-655 773	-737 096
Summa rörelsens kostnader		$-222815516$	$-153610253$
Rörelseresultat		16 826 756	12 948 305
Resultat från finansiella poster
Övriga ränteintäkter och liknande resultatposter		28 2 9 6	16 5 5 4
Räntekostnader och liknande resultatposter		-396 686	$-360824$
Summa resultat från finansiella poster		$-368390$	$-344270$
Resultat efter finansiella poster		16 458 366	12 604 035
Bokslutsdispositioner	4	1 000 000	-2 580 000
Skatt på årets resultat	5	$-3892033$	$-2253474$
Årets vinst		13 566 333	7770561

Balansräkning	Not	2016-04-30	2015-04-30
Tillgångar	1
Anläggningstillgångar
Materiella anläggningstillgångar			10 143 046
Byggnader och mark	6 7	10 851 810 794 145	824 686
Inventarier, verktyg och installationer
		11 645 955	10 967 732
Summa anläggningstillgångar		11 645 955	10 967 732
Omsättningstillgångar
Varulager m m Färdiga varor och handelsvaror		3 727 246	3 822 281
Kortfristiga fordringar
Kundfordringar		35 633 014	11 267 199
Fordringar hos koncernföretag		4 880 319	4 879 119
Övriga kortfristiga fordringar		3 0 0 0	279 411
Förutbetalda kostnader och upplupna intäkter	8	6 590 491	792 350
		47 106 824	17 218 079
Kassa och bank		12 120 749	11 890 293
Summa omsättningstillgångar		62 954 819	32 930 653
Summa tillgångar		74 600 774	43 898 385

Balansräkning	Not	2016-04-30	2015-04-30
Eget kapital och skulder	1
Eget kapital	9
Bundet eget kapital Aktiekapital Reservfond		100 000 20 000	100 000 20 000
		120 000	120 000
Fritt eget kapital Balanserad vinst eller förlust Årets vinst		5 177 163 13 566 333 18 743 496	4 906 602 7770561 12 677 163
Summa eget kapital		18 863 496	12 797 163
Obeskattade reserver	10	6 660 000	7 660 000
Långfristiga skulder Övriga skulder till kreditinstitut	11 12	8 2 3 5 8 0 8	8 4 23 3 08
Summa långfristiga skulder		8 2 3 5 8 0 8	8 4 23 3 08
Kortfristiga skulder Skulder till kreditinstitut Förskott från kunder Leverantörsskulder Aktuella skatteskulder Övriga kortfristiga skulder Upplupna kostnader och förutbetalda intäkter	11 12 13	250 000 99 4 26 31 107 869 4 007 208 2 149 307 3 227 660	250 000 119813 8 978 064 1 173 372 1986270 2 510 395
Summa kortfristiga skulder		40 841 470	15 017 914
Summa eget kapital och skulder		74 600 774	43 898 385
Ställda säkerheter	12	14 234 000	14 234 000
Ansvarsförbindelser		Inga	Inga

Kassaflödesanalys	2015-05-01 $-2016 - 04 - 30$	2014-05-01 $-2015 - 04 - 30$
Den löpande verksamheten
Rörelseresultat före finansiella poster	16 826 756	12 948 305
Justering för poster som inte ingår i kassaflödet, mm	907 043	1 020 296
Erhållen ränta	28 3 9 6	16 5 5 4
Erlagd ränta	-396 686	$-360823$
Betald inkomstskatt	-3 892 033	$-2253474$
	13 473 476	11 370 858
Ökning/minskning varulager	$-95035$	$-181119$
Ökning/minskning kortfristiga fordringar	-29 887 545	$-1269237$
Ökning/minskning kortfristiga skulder	25 823 556	2 377 084
Kassaflöde från den löpande verksamheten	9 3 1 4 4 5 2	12 297 586
Investeringsverksamheten
Investeringar i materiella anläggningstillgångar	-1 333 996	$-1001698$
Kassaflöde från investeringsverksamheten	-1 333 996	$-1001698$
Finansieringsverksamheten
Amortering av skuld	$-250000$	$-250000$
Utbetald utdelning	$-7500000$	-3 000 000
Kassaflöde från finansieringsverksamheten	$-7750000$	-3 250 000
Årets kassaflöde	230 456	8 0 4 5 8 8 8
Likvida medel vid årets början	11 890 293	3 844 405
Likvida medel vid årets slut	12 120 749	11 890 293

Noter

Not 1 Redovisnings- och värderingsprinciper

Års- och koncernredovisningarna upprättas med tillämpning av årsredovisningslagen och Bokföringsnämndens allmänna råd BFNAR 2012:1 Årsredovisning och koncernredovisning (K3).

Intäkter

Försäljning av varor

Försäljning av varor redovisas vid leverans av produkter till kunden, i enlighet med försäljningsvillkoren. Försäljning redovisas netto efter moms och rabatter. I koncernredovisningen elimineras koncernintern försäljning.

Tjänsteuppdrag

För tjänsteuppdrag till fast pris redovisas de inkomster och utgifter som är hänförliga till ett utfört tjänsteuppdrag som intäkt respektive kostnad i förhållande till uppdragets färdigställandegrad på balansdagen (successiv vinstavräkning). Ett uppdrags färdigställandegrad bestäms genom att nedlagda utgifter på balansdagen jämförs med beräknade totala utgifter. I de fall utfallet av ett uppdrag inte kan beräknas på ett tillförlitligt sätt, redovisas intäkter endast i den utsträckning som motsvaras av de uppkomna uppdragsutgifter som sannolikt kommer att ersättas av beställaren. En befarad förlust på ett uppdrag redovisas omgående som kostnad.För tjänsteuppdrag på löpande räkning redovisas inkomsten som är hänförlig till ett utfört tjänsteuppdrag som intäkt i takt med att arbete utförs och material levereras eller förbrukas

Övriga intäkter som injänats redovisas enligt följande Hyresintäkter: i den period uthyrningen avser Ränteintäkter: i enlighet med effektiv avkastning

Inkomstskatter

Redovisade inkomstskatter innefattar skatt som skall betalas eller erhållas avseende aktuellt år samt justeringar avseende tidigare års aktuella skatt.

Skatteskulder/fordringar värderas till vad som enligt företagets bedömning skall erläggas till eller erhållas från Skatteverket. Bedömningen görs enligt de skatteregler och skattesatser som är beslutade eller som är aviserade och med stor säkerhet kommer fastställas.

För poster som redovisas i resultaträkningen, redovisas även därmed sammanhängande skatteeffekter i resultaträkningen. Skatteeffekter av poster som redovisas direkt mot eget kapital, redovisas mot eget kapital.

Uppskjuten skatt avseende framtida skatteeffekter redovisas inte i resultat- och balansräkningarna.

Materiella anläggningstillgångar

Materiella anläggningstillgångar redovisas till anskaffningsvärde minskat med avskrivningar. I anskaffningsvärdet ingår utgifter som direkt kan hänföras till förvärvet av tillgången. När en komponent i en anläggningstillgång byts ut, utrangeras eventuell kvarvarande del av den

gamla komponenten och den nya komponentens anskaffningsvärde aktiveras. Tillkommande utgifter som avser tillgångar som inte delas upp i komponenter läggs till anskaffningsvärdet om de beräknas ge företaget framtida ekonomiska fördelar, till den del tillgångens prestanda ökar i förhållande till tillgångens värde vid anskaffningstidpunkten. Utgifter för löpande reparation och underhåll redovisas som kostnader.

Realisationsvinst respektive realisationsförlust vid avyttring av en anläggningstillgång redovisas som Övrig rörelseintäkt respektive Övrig rörelsekostnad.

Materiella anläggningstillgångar skrivs av systematiskt över tillgångens bedömda nyttjandeperiod. När tillgångarnas avskrivningsbara belopp fastställs, beaktas i förekommande fall tillgångens restvärde. Bolagets mark har obegränsad nyttjandeperiod och skrivs inte av. Linjär avskrivningsmetod används för övriga typer av materiella tillgångar. Följande avskrivningstider tillämpas:

50 år
50 år
50 år
50 år
$20$ år
5 år
3 år

Finansiella instrument

Finansiella instrument som redovisas i balansräkningen inkluderar värdepapper, kundfordringar och övriga fordringar, kortfristiga placeringar, leverantörsskulder, och låneskulder. Instrumenten redovisas i balansräkningen när bolaget blir part i instrumentets avtalsmässiga villkor. Finansiella tillgångar tas bort från balansräkningen när rätten att erhålla kassaflöden från instrumentet har löpt ut eller överförts och koncernen har överfört i stort sett alla risker och förmåner som är förknippade med äganderätten.

Finansiella skulder tas bort från balansräkningen när förpliktelserna har reglerats eller på annat sätt upphört.

Kundfordringar och övriga fordringar

Fordringar redovisas som omsättningstillgångar med undantag för poster med förfallodag mer än 12 månader efter balansdagen, vilka klassificeras som anläggningstillgångar. Fordringar tas upp till det belopp som förväntas bli inbetalt efter avdrag för individuellt bedömda osäkra fordringar. Fordringar som är räntefria eller som löper med ränta som avviker från marknadsräntan och har en löptid överstigande 12 månader redovisas till ett diskonterat nuvärde och tidsvärdeförändringen redovisas som ränteintäkt i resultaträkningen.

Kortfristiga placeringar

Värdepapper som är anskaffade med avsikt att innehas kortsiktigt redovisas inledningsvis till anskaffningsvärde och i efterföljande värderingar i enlighet med lägsta värdets princip till det lägsta av anskaffningsvärde och marknadsvärde. I posten kortfristiga placeringar ingår aktier som innehas för att placera likviditetsöverskott på kort sikt.

Låneskulder och leverantörsskulder

Låneskulder och leverantörsskulder redovisas initialt till anskaffningsvärde efter avdrag för transaktionskostnader. Skiljer sig det redovisade beloppet från det belopp som ska återbetalas vid förfallotidpunkten periodiseras mellanskillnaden som räntekostnad över lånets löptid med hjälp av instrumentets effektivränta. Härigenom överensstämmer vid förfallotidpunkten det redovisade beloppet och det belopp som ska återbetalas.

Kvittning av finansiell fordran och finansiell skuld

En finansiell tillgång och en finansiell skuld kvittas och redovisas med ett nettobelopp i balansräkningen endast då legal kvittningsrätt föreligger samt då en reglering med ett nettobelopp avses ske eller då en samtida avyttring av tillgången och reglering av skulden avses ske.

Varulager

Varulagret värderas enligt inkomstskattelagens bestämmelser till det lägsta av 97 procent av anskaffningsvärdet och nettoförsäljningsvärdet. För råvaror ingår alla utgifter som är direkt hänförliga till anskaffningen av varorna i anskaffningsvärdet.

Obeskattade reserver

Obeskattade reserver redovisas med bruttobelopp i balansräkningen, inklusive den uppskjutna skatteskuld som är hänförlig till reserverna.

Bokslutsdispositioner

Förändringar av obeskattade reserver redovisas som bokslutsdispositioner i resultaträkningen. Koncernbidrag redovisas som bokslutsdispositioner.

Nyckeltalsdefinitioner

Soliditet

Eget kapital och obeskattade reserver (med avdrag för uppskjuten skatt) i förhållande till balansomslutningen.

Uppskattningar och bedömningar Not 2

BKE Telecom AB gör uppskattningar och bedömningar om framtiden. De uppskattningar för redovisningsändamål som blir följden av dessa kommer, definitionsmässigt, sällan att motsvara det verkliga resultatet. De uppskattningar och antaganden som innebär en betydande risk för väsentliga justeringar i redovisade värden för tillgångar och skulder under nästkommande år behandlas i huvuddrag nedan.

Inkurans i varulager

Bolagets försäljning av varor består i inköpta produkter. Det är en snabb teknikutveckling för de produkter som bolaget handlar med. Det finns ett lager av produkter för försäljning. Skulle teknikutvecklingen leda till att en produkt blir omodern finns det en risk för att priset senare måste sättas ner eller att produkter måste kasseras. I bokslutet görs nedskrivning för inkurans med 3% av anskaffningsvärdet vilket beräknas motsvara verklig inkurans utifrån en bedömning av nettoförsäljningsvärde på vissa artiklar. Att fastställa nedskrivingsbehovet är en väsentlig och svår bedömningsfråga.

Not 3 Löner, andra ersättningar och sociala kostnader

	2015-05-01	2014-05-01
	$-2016 - 04 - 30$	$-2015 - 04 - 30$
Medelantalet anställda
Kvinnor	9	8
Män	36	33
Totalt	45	41
Löner, ersättningar, sociala avgifter och pensionskostnader
Löner och ersättningar till styrelsen och verkställande
direktören	1747388	1 747 255
Löner och ersättningar till övriga anställda	13 838 124	12 322 136
	15 585 512	14 069 391
Sociala avgifter enligt lag och avtal	4 811 120	4 178 467
Pensionskostnader för styrelsen och verkställande direktören	254 403	122 140
Pensionskostnader för övriga anställda	606 666	525 170
Totalt	21 257 701	18 895 168

BKE TeleCom AB
556465-1551

	2015-05-01 $-2016 - 04 - 30$	2014-05-01 $-2015 - 04 - 30$
Styrelseledamöter och ledande befattningshavare Antal styrelseledamöter på balansdagen
Män	3	3
Totalt	$\overline{3}$	$\overline{3}$
Bokslutsdispositioner Not 4
	2015-05-01 $-2016 - 04 - 30$	2014-05-01 $-2015 - 04 - 30$
Aterföring av periodiseringsfond Avsättning till periodiseringsfond	1 400 000 -400 000	820 000 -3 400 000
Summa	1 000 000	-2 580 000
Skatt på årets resultat Not 5
	2015-05-01 $-2016 - 04 - 30$	2014-05-01 $-2015 - 04 - 30$
Aktuell skatt	-3 892 033	$-2253474$
Skatt på årets resultat	-3 892 033	$-2253474$
Redovisat resultat före skatt	17 458 366	10 024 035
Skatt beräknad enligt gällande skattesats (22%)	3 840 840	2 2 0 5 2 8 7
Skatteeffekt av ej avdragsgilla kostnader	48 615	45 494 $-3647$
Skatteeffekt av andra ej bokförda kostnader Skatteeffekt av andra bokförda intäkter	-4 989 $-352$
Skatteeffekt av schablonränta på periodiseringsfond	7919	6 3 4 0
Redovisad skattekostnad	3 892 033	2 2 5 3 4 7 4

2016060714523

Byggnader och mark Not 6

	2015-05-01 $-2016 - 04 - 30$	2014-05-01 $-2015 - 04 - 30$
Byggnader Ingående anskaffningsvärden Inköp	10 265 402 946 480	10 265 402
Utgående ackumulerade anskaffningsvärden	11 211 882	10 265 402
Ingående avskrivningar Årets avskrivningar	$-2293065$ $-199026$	-2 097 297 $-195768$
Utgående ackumulerade avskrivningar	$-2492091$	$-2293065$
Utgående restvärde byggnad	8719791	7972337
Mark Ingående anskaffningsvärden Årets förändringar:	1 563 097	1 563 097
Utgående restvärde mark	1 563 097	1 563 097
Markanläggning Ingående anskaffningsvärden Inköp	753 834	150 000 603 834
Utgående ackumulerade anskaffningsvärden	753 834	753 834
Ingående avskrivningar	$-147221$	$-120000$
Årets förändringar -Avskrivningar	$-37691$	$-27221$
Utgående ackumulerade avskrivningar	$-184912$	-147 221
Utgående restvärde	568 922	606 613
Utgående bokfört värde byggnad, mark och markanläggning	10 851 810	10 143 046
Taxeringsvärden för fastigheter	5 052 000	5 052 000

$\hat{\mathcal{A}}$

Inventarier, verktyg och installationer Not 7

	2015-05-01 $-2016 - 04 - 30$	2014-05-01 $-2015 - 04 - 30$
Ingående anskaffningsvärden Årets förändringar	3736240	3 3 3 8 3 7 4
-Inköp	387 516	397 866
Utgående ackumulerade anskaffningsvärden	4 123 756	3736240
Ingående avskrivningar Årets förändringar	$-2911854$	$-2397747$
-Avskrivningar	$-417757$	$-513808$
Utgående ackumulerade avskrivningar	$-3329611$	$-2911555$
Utgående restvärde enligt plan	794 145	824 685

Not 8 Förutbetalda kostnader och upplupna intäkter

	2016-04-30	2015-04-30
Förutbetald internet	20 970	5 9 0 0
Upplupen provision	968 056	763 618
Övriga poster	5 601 465	22 8 32
	6 590 491	792 350

Not 9 Förändring av eget kapital

Eget kapital 2015-04-31 Utdelning enligt beslut av årsstämman	Aktie- kapital 100 000	Reserv- fond 20 000	fritt eget kapital 12 677 162 $-7500000$	eget kapital 12 797 162 $-7500000$
Årets resultat			13 566 333	13 566 333
Eget kapital 2016-04-31	100 000	20 000	18 743 495	18 863 495

Not 10 Obeskattade reserver

	2016-04-30	2015-04-30
Periodiseringsfond tax 2011		1 400 000
Periodiseringsfond tax 2012	1 000 000	1 000 000
Periodiseringsfond tax 2013	400 000	400 000
Periodiseringsfond 2013	420 000	420 000
Periodiseringsfond 2014	1 040 000	1 040 000
Periodiseringsfond 2015	3 400 000	3 400 000
Periodiseringsfond 2016	400 000
Summa	6 660 000	7 660 000
Upplåning Not 11
	2016-04-30	2015-04-30
Räntebärande skulder
Långfristiga skulder		8 423 302
Skulder till kreditinstitut	8 2 3 5 8 0 8
Summa	8 2 3 5 8 0 8	8 423 302
Kortfristiga skulder
Skulder till kreditinstitut	250 000	250 000
Summa	250 000	250 000
Summa räntebärande skulder	8 4 8 5 8 0 8	8 673 302
Förfallotider Den del av långfristiga skulder som förfaller till betalning
senare än fem år efter balansdagen
Skulder till kreditinstitut	7 173 308	7 423 308
Summa	7 173 308	7423308

	2016-04-30	2015-04-30
För egna avsättningar och skulder
Avseende Skulder till kreditinstitut
Fastighetsinteckningar	10 234 000	10 234 000
Företagsinteckningar	4 000 000	4 000 000
Summa ställda säkerheter	14 234 000	14 234 000

Upplupna kostnader och förutbetalda intäkter Not 13

	2016-04-30	2015-04-30
Upplupna lönerelaterade kostnader	2 180 317	1 925 996
Upplupna sociala avgifter	662 365	556239
Övriga poster	384 977	28 160
Summa	3 227 659	2 510 395

Karlstad 2016-05-27

Thomas Gustavsson Verkställande direktör

Peter Gustavsson

Daniel Råd

Kopians överensstämmelse ...............

Min revisionsberättelse har lämnats 2016-05-27.

Jan Nyström Auktoriserad revisor

Revisionsberättelse

Till årsstämman i BKE TeleCom AB, org.nr 556465-1551

Rapport om årsredovisningen

Jag har utfört en revision av årsredovisningen för BKE TeleCom AB för år 2015-05-01 - 2016-04-30.

Sturelsens och verkställande direktörens ansvar för årsredovisningen

Det är styrelsen och verkställande direktören som har ansvaret för att upprätta en årsredovisning som ger en rättvisande bild enligt årsredovisningslagen och för den interna kontroll som styrelsen och verkställande direktören bedömer är nödvändig för att upprätta en årsredovisning som inte innehåller väsentliga felaktigheter, vare sig dessa beror på oegentligheter eller på fel.

Revisorns ansvar

Mitt ansvar är att uttala mig om årsredovisningen på grundval av min revision. Jag har utfört revisionen enligt International Standards on Auditing och god revisionssed i Sverige. Dessa standarder kräver att jag följer yrkesetiska krav samt planerar och utför revisionen för att uppnå rimlig säkerhet att årsredovisningen inte innehåller väsentliga felaktigheter.

En revision innefattar att genom olika åtgärder inhämta revisionsbevis om belopp och annan information i årsredovisningen. Revisorn väljer vilka åtgärder som ska utföras, bland annat genom att bedöma riskerna för väsentliga felaktigheter i årsredovisningen, vare sig dessa beror på oegentligheter eller på fel. Vid denna riskbedömning beaktar revisorn de delar av den interna kontrollen som är relevanta för hur bolaget upprättar årsredovisningen för att ge en rättvisande bild i syfte att utforma granskningså tgärder som är ändamålsenliga med hänsyn till omständigheterna, men inte i syfte att göra ett uttalande om effektiviteten i bolagets interna kontroll. En revision innefattar också en utvärdering av ändamålsenligheten i de redovisningsprinciper som har använts och av rimligheten i styrelsens och verkställande direktörens uppskattningar i redovisningen, liksom en utvärdering av den övergripande presentationen i årsredovisningen.

Jag anser att de revisionsbevis jag har inhämtat är tillräckliga och ändamålsenliga som grund för mina uttalanden.

Uttalanden

Enligt min uppfattning har årsredovisningen upprättats i enlighet med årsredovisningslagen och ger en i alla väsentliga avseenden rättvisande bild av BKE TeleCom ABs finansiella ställning per den 30 april 2016 och av dess finansiella resultat för året enligt årsredovisningslagen. Förvaltningsberättelsen är förenlig med årsredovisningens övriga delar.

Jag tillstyrker därför att årsstämman fastställer resultaträkningen och balansräkningen.

Rapport om andra krav enligt lagar och andra författningar

Utöver min revision av årsredovisningen har jag även utfört en revision av förslaget till dispositioner beträffande bolagets vinst eller förlust samt styrelsens och verkställande direktörens förvaltning för BKE TeleCom AB för år 2015-05-01 - 2016-04-30.

Styrelsens och verkställande direktörens ansvar

Det är styrelsen som har ansvaret för förslaget till dispositioner beträffande bolagets vinst eller förlust, och det är styrelsen och verkställande direktören som har ansvaret för förvaltningen enligt aktiebolagslagen.

Revisorns ansvar

Mitt ansvar är att med rimlig säkerhet uttala mig om förslaget till dispositioner beträffande bolagets vinst eller förlust och om förvaltningen på grundval av min revision. Jag har utfört revisionen enligt god revisionssed i Sverige.

Som underlag för mitt uttalande om styrelsens förslag till dispositioner beträffande bolagets vinst eller förlust har jag granskat styrelsens motiverade yttrande samt ett urval av underlagen för detta för att kunna bedöma om förslaget är förenligt med aktiebolagslagen.

Som underlag för mitt uttalande om ansvarsfrihet har jag utöver min revision av årsredovisningen granskat väsentliga beslut, åtgärder och förhållanden i bolaget för att kunna bedöma om någon styrelseledamot eller verkställande direktören är ersättningsskyldig mot bolaget. Jag har även granskat om någon styrelseledamot eller verkställande direktören på annat sätt har handlat i strid med aktiebolagslagen, årsredovisningslagen eller bolagsordningen.

Jag anser att de revisionsbevis jag har inhämtat är tillräckliga och ändamålsenliga som grund för mina uttalanden.

Uttalanden

Jag tillstyrker att årsstämman disponerar vinsten enligt förslaget i förvaltningsberättelsen och beviljar styrelsens ledamöter och verkställande direktören ansvarsfrihet för räkenskapsåret.

Karlstad den 27 maj 2016

Jan Nyström Auktoriserad revisor

APPENDIX 4:

AUDITED HISTORICAL FINANCIAL INFORMATION FOR BKE TELECOM AB FOR THE FINANCIAL YEAR 2016/2017

BKE TeleCom AB Org nr 556465-1551

Årsredovisning för räkenskapsåret 2016-05-01 - 2017-04-30

Styrelsen och verkställande direktören avger följande årsredovisning.

Innehåll	Sida
- förvaltningsberättelse	$\overline{2}$
resultaträkning $\Delta \sim 10^4$	5
- balansräkning	6
- kassaflödesanalys	8
noter	9

Om inte annat särskilt anges, redovisas alla belopp i kronor. Uppgifter inom parentes avser föregående år.

Förvaltningsberättelse

Information om verksamheten

Bolaget levererar helhetslösningar inom telefoni till företag och offentliga myndigheter. Lösningarna är alltid anpassade efter kundens situation och behov och utifrån ett oberoende perspektiv där alla delar skall fungera och samverka ihop. Vidare erbjuder bolaget vägledande kunskap för köp. hantering och drift av produkter och tjänster inom området. Främst med fokus på livscykelhanering.

Bolagets huvudsakliga affärsområden inkluderar telefonilösningar, hårdvara & mobila tjänster samt operatörstjänster med oberoende analyser för att hjälpa organisationer att välja rätt operatör. Vidare kan bolaget leverera telefonväxlar från fyra upp till en halv miljon användare och är med kund från planering till installation och utbildning samt uppföljning.

Verksamheten bedrivs i egna lokaler på Våxnäs handelsområde i Karlstad. Tyngden i bolagets omsättning ligger i avtal med offentliga myndigheter gällande leverans av hårdvara, tjänster och lösningar inom mobilitet. Totalt under verksamhetsåret 2016/17 tecknades nya avtal med 8 kommuner, 9 statliga myndigheter. Totalt har bolaget gällande avtal med 55 kommuner, 48 statliga myndigheter och 1 landsting. Många av avtalen är under flera år vilket ger ett positivt läge inför nästkommande verksamhetsår.

Bolaget är ett helägt dotterbolag till BKE Holding AB, org.nr.556766-4775 med säte i Karlstad.

Flerårsjämförelse

		2016/17	2015/16	2014/15	2013/14
Nettoomsättning	tkr	189 050	239 638	166 927	109 783
Resultat efter finansiella poster	tkr	13 5 22	16458	12 604	4 0 0 2
Balansomslutning	tkr	50 143	74 600	43 898	33 220
Antal anställda	st	46	45	41	37
Soliditet	$\%$	40,9	32,2	42,7	36,0
Avkastning på totalt kapital	$\frac{0}{0}$	27,6	22,6	29,5	13,4
Avkastning på eget kapital	$\frac{0}{0}$	65,9	68,4	67,1	33,4

TF

Nyckeltalsdefinitioner framgår av not 1

Viktiga förhållanden och väsentliga händelser

Bolaget har under hela förra året satsat på att få fler större företagskunder utanför Värmland. Satsningen har varit lyckad men resultatmässigt kommer det synas mer under kommande räkenskapsår. Vidare har bolaget under året fortsatt sin utveckling av sin egen växeltjänst i molnet. Genom denna kan bolaget, oberoende operatör, möta kundens behov samt hantera leverans, utbildning och support med egen personal. Under verksamhetsåret har 85 nya företag valt lösningen. Totalt har nu bolaget ca 400 företag med totalt ca 5000 anknytningar som har gällande avtal för sin telefoni via bolagets växeltjänst. Detta stärker bolagets strategi att verka som en både produkt- och tjänsteleverantör inom telekommunikation. Vidare har bolaget under året utvecklat en egen lösning för kommunikation som tjänst där bolaget kan vara avtalspart för växel, hårdvara och operatör. Bolaget ser en fortsatt mycket god tillströmning av nya kunder till både växeltjänsten samt kommunikation som tjänst under kommande räkenskapsår.

Webshopen utvecklades ytterligare och kan idag anses som en av Sveriges absolut främsta inom området. Bolaget har utvecklat en rad ytterligare funktioner anpassade för befintliga och nya kunder samt har integrerat lösningar mot flera av de befintliga kundernas inköpssystem. Utgångspunkten är att hantera orders så automatiskt som möjligt både för kund och för bolaget. Bolaget har budgeterat för en ökning av intäkter och resultat för kommande verksamhetsår.

Förändring av eget kapital

				Övrigt	Summa
	Aktie-	Reserv-	Fond för	fritt eget	eget
	kapital	fond	utvecklingsutgifter	kapital	kapital
Eget kapital 2016-04-30	100 000	20 000			18 743 496 18 863 496
Utdelning enligt beslut av
årsstämman				$-14000000$
Årets resultat				11 240 201
Aktivering av
utvecklingsutgifter			702 215	$-702215$
Eget kapital 2017-04-30	100 000	20 000	702 215	15 281 482 16 103 697

Förslag till vinstdisposition

Till årsstämmans förfogande står följande vinstmedel:

Balanserade vinstmedel Årets vinst		4 041 281 11 240 201
	kronor	15 281 482
Styrelsen föreslår att vinstmedlen disponeras så att
till aktieägarna utdelas 4000 kr per aktie, totalt i ny räkning överförs		4 000 000 11 281 482
	kronor	15 281 482

Styrelsens yttrande över den föreslagna vinstutdelningen

Den föreslagna utdelningen reducerar bolagets soliditet till 35,8 procent. Soliditeten är mot bakgrund av att bolagets verksamhet fortsatt bedrivs med lönsamhet betryggande. Likviditeten i bolaget bedöms kunna upprätthållas på en likaledes betryggande nivå.

Styrelsens uppfattning är att den föreslagna utdelningen ej hindrar bolaget från att fullgöra sina förpliktelser på kort och lång sikt, ej heller att fullgöra erforderliga investeringar. Den föreslagna utdelningen kan därmed försvaras med hänsyn till vad som anförs i ABL 17 kap 3 § 2-3 st. (försiktighetsregeln).

$\sigma$

BKE TeleCom AB 556465-1551

$\ddot{\phantom{1}}$

$\overline{\phantom{0}}$

∽

Resultaträkning	Not	2016-05-01 $-2017 - 04 - 30$	2015-05-01 $-2016 - 04 - 30$
Nettoomsättning Övriga rörelseintäkter	1	189 050 838 11 540	239 638 883 3 3 8 9
		189 062 378	239 642 272
Rörelsens kostnader
Råvaror och förnödenheter		$-143547335$	-191 763 044
Övriga externa kostnader	$\frac{3}{5}$ , 4	$-7455064$	$-7409179$
Personalkostnader Av- och nedskrivningar av materiella och immateriella		-23 492 000	$-22987520$
anläggningstillgångar		$-736334$	$-655773$
Summa rörelsens kostnader		-175 230 733	$-222815516$
Rörelseresultat		13 831 645	16 826 756
Resultat från finansiella poster
Övriga ränteintäkter och liknande resultatposter		42 717	28 29 6
Räntekostnader och liknande resultatposter		$-351847$	-396 686
Summa resultat från finansiella poster		$-309130$	$-368390$
Resultat efter finansiella poster		13 522 515	16 458 366
Bokslutsdispositioner	6	1 000 000	1 000 000
Skatt på årets resultat	$\overline{7}$	-3 282 314	-3 892 033
Årets vinst		11 240 201	13 566 333

$\ddot{\phantom{a}}$

Balansräkning	Not	2017-04-30	2016-04-30
Tillgångar	$\mathbf{1}$
Anläggningstillgångar
Immateriella anläggningstillgångar
Koncessioner, patent, licenser, varumärken samt liknande rättigheter	8	702 215
Materiella anläggningstillgångar
Byggnader och mark	9	10 601 957	10 851 810
Inventarier, verktyg och installationer	10	808 934	794 145
		11 410 891	11 645 955
Summa anläggningstillgångar		12 113 106	11 645 955
Omsättningstillgångar
Varulager m m
Färdiga varor och handelsvaror		2 9 2 5 5 1 0	3 727 246
Kortfristiga fordringar
Kundfordringar		18 179 030	35 633 014
Fordringar hos koncernföretag		2881519	4880319
Övriga kortfristiga fordringar		11 994	3 0 0 0
Förutbetalda kostnader och upplupna intäkter	11	2 347 499	6 590 491
		23 420 042	47 106 824
Kassa och bank		11 684 794	12 120 749
Summa omsättningstillgångar		38 030 346	62 954 819
Summa tillgångar		50 143 452	74 600 774

$\overline{\phantom{0}}$

$\overline{\phantom{0}}$

$\overline{a}$

Balansräkning	Not	2017-04-30	2016-04-30
Eget kapital och skulder	$\mathbf{1}$
Eget kapital
Bundet eget kapital Aktiekapital Reservfond Fond för utvecklingsutgifter	12, 13 8	100 000 20 000 702 215	100 000 20 000
		822 215	120 000
Fritt eget kapital Balanserad vinst eller förlust Årets vinst		4 041 281 11 240 201 15 281 482	5 177 163 13 566 333 18 743 496
Summa eget kapital		16 103 697	18 863 496
Obeskattade reserver	14	5 660 000	6 660 000
Långfristiga skulder Övriga skulder till kreditinstitut	15 16	7985808	8 2 3 5 8 0 8
Summa långfristiga skulder		7985808	8 2 3 5 8 0 8
Kortfristiga skulder Skulder till kreditinstitut Förskott från kunder Leverantörsskulder	15 16	250 000 9 9 9 3 6 3 1	250 000 99 4 26 31 107 869
Aktuella skatteskulder Övriga kortfristiga skulder Upplupna kostnader och förutbetalda intäkter	17	3 928 976 3 241 727 2 979 613	4 007 208 2 149 307 3 227 660
Summa kortfristiga skulder		20 393 947	40 841 470
Summa eget kapital och skulder		50 143 452	74 600 774

$\sigma$ F

$\overline{a}$

÷

Kassaflödesanalys	2016-05-01 $-2017 - 04 - 30$	2015-05-01 $-2016 - 04 - 30$
Den löpande verksamheten
Rörelseresultat före finansiella poster	13 831 645	16 826 756
Justering för poster som inte ingår i kassaflödet, mm	736 334	907 043
Erhållen ränta	42 717	28 3 9 6
Erlagd ränta	$-351847$	-396 686
Betald inkomstskatt	$-3360546$	-3 892 033
	10 898 303	13 473 476
Okning/minskning varulager	801 736	$-95035$
Ökning/minskning kortfristiga fordringar	23 686 782	-29 887 545
Ökning/minskning kortfristiga skulder	$-20369291$	25 823 556
Kassaflöde från den löpande verksamheten	15 017 530	9 3 1 4 4 5 2
Investeringsverksamheten
Investeringar i immateriella anläggningstillgångar	$-791356$
Investeringar i materiella anläggningstillgångar	$-783054$	$-1333996$
Ersättning för sålda materiella anläggningstillgångar	370 925
Kassaflöde från investeringsverksamheten	$-1203485$	$-1333996$
Finansieringsverksamheten
Amortering av skuld	$-250000$	$-250000$
Utbetald utdelning	$-14000000$	$-7500000$
Kassaflöde från finansieringsverksamheten	$-14250000$	$-7750000$
Årets kassaflöde	-435 955	230 456
Likvida medel vid årets början	12 120 749	11 890 293
Likvida medel vid årets slut	11 684 794	12 120 749
		$\mathcal{D}^{\mathcal{P}}$

Noter

Not 1 Redovisnings- och värderingsprinciper

Årsredovisningen upprättas med tillämpning av årsredovisningslagen och Bokföringsnämndens allmänna råd BFNAR 2012:1 Årsredovisning och koncernredovisning (K3).

Koncernredovisningen upprättas av moderbolaget BKE Holding AB, 556766-4775.

Intäkter

Försäljning av varor

Försäljning av varor redovisas vid leverans av produkter till kunden, i enlighet med försäljningsvillkoren. Försäljning redovisas netto efter moms och rabatter.

Tjänsteuppdrag

För tjänsteuppdrag till fast pris redovisas de inkomster och utgifter som är hänförliga till ett utfört tjänsteuppdrag som intäkt respektive kostnad i förhållande till uppdragets färdigställandegrad på balansdagen (successiv vinstavräkning). Ett uppdrags färdigställandegrad bestäms genom att nedlagda utgifter på balansdagen jämförs med beräknade totala utgifter. I de fall utfallet av ett uppdrag inte kan beräknas på ett tillförlitligt sätt, redovisas intäkter endast i den utsträckning som motsvaras av de uppkomna uppdragsutgifter som sannolikt kommer att ersättas av beställaren. En befarad förlust på ett uppdrag redovisas omgående som kostnad. För tjänsteuppdrag på löpande räkning redovisas inkomsten som är hänförlig till ett utfört tjänsteuppdrag som intäkt i takt med att arbete utförs och material levereras eller förbrukas

Övriga intäkter som injänats redovisas enligt följande Hyresintäkter: i den period uthyrningen avser Ränteintäkter: i enlighet med effektiv avkastning

Inkomstskatter

Redovisade inkomstskatter innefattar skatt som skall betalas eller erhållas avseende aktuellt år samt justeringar avseende tidigare års aktuella skatt.

Skatteskulder/fordringar värderas till vad som enligt företagets bedömning skall erläggas till eller erhållas från Skatteverket. Bedömningen görs enligt de skatteregler och skattesatser som är beslutade eller som är aviserade och med stor säkerhet kommer fastställas.

För poster som redovisas i resultaträkningen, redovisas även därmed sammanhängande skatteeffekter i resultaträkningen. Skatteeffekter av poster som redovisas direkt mot eget kapital, redovisas mot eget kapital.

Uppskjuten skatt avseende framtida skatteeffekter redovisas inte i resultat- och balansräkningarna.

Immateriella tillgångar

Immateriella anläggningstillgångar redovisas till anskaffningsvärde minskat med ackumulerade avskrivningar och nedskrivningar. Avskrivningar görs linjärt över den bedömda nyttjandetiden. $\mathcal{T}$

$9(20)$

Materiella anläggningstillgångar

Materiella anläggningstillgångar redovisas till anskaffningsvärde minskat med avskrivningar. I anskaffningsvärdet ingår utgifter som direkt kan hänföras till förvärvet av tillgången.

När en komponent i en anläggningstillgång byts ut, utrangeras eventuell kvarvarande del av den gamla komponenten och den nya komponentens anskaffningsvärde aktiveras.

Tillkommande utgifter som avser tillgångar som inte delas upp i komponenter läggs till anskaffningsvärdet om de beräknas ge företaget framtida ekonomiska fördelar, till den del tillgångens prestanda ökar i förhållande till tillgångens värde vid anskaffningstidpunkten.

Utgifter för löpande reparation och underhåll redovisas som kostnader.

Realisationsvinst respektive realisationsförlust vid avyttring av en anläggningstillgång redovisas som Övrig rörelseintäkt respektive Övrig rörelsekostnad.

Materiella anläggningstillgångar skrivs av systematiskt över tillgångens bedömda nyttjandeperiod. När tillgångarnas avskrivningsbara belopp fastställs, beaktas i förekommande fall tillgångens restvärde. Bolagets mark har obegränsad nyttjandeperiod och skrivs inte av. Linjär

avskrivningsmetod används för övriga typer av materiella tillgångar.

Följande avskrivningstider tillämpas:

Kontorsbyggnader
Stommar	50 år
Fasader, yttertak, fönster	$50$ år
Ledningssystem	50 ar
Övrigt	50 år
Markanläggning	20 ar
Inventarier, verktyg och installationer	5 år
Datautrustning	3 år
Licenser och programvaror	5 år

Finansiella instrument

Finansiella instrument som redovisas i balansräkningen inkluderar värdepapper, kundfordringar och övriga fordringar, kortfristiga placeringar, leverantörsskulder, och låneskulder. Instrumenten redovisas i balansräkningen när bolaget blir part i instrumentets avtalsmässiga villkor. Finansiella tillgångar tas bort från balansräkningen när rätten att erhålla kassaflöden från instrumentet har löpt ut eller överförts och koncernen har överfört i stort sett alla risker och förmåner som är förknippade med äganderätten.

Finansiella skulder tas bort från balansräkningen när förpliktelserna har reglerats eller på annat sätt upphört.

Kundfordringar och övriga fordringar

Fordringar redovisas som omsättningstillgångar med undantag för poster med förfallodag mer än 12 månader efter balansdagen, vilka klassificeras som anläggningstillgångar. Fordringar tas upp till det belopp som förväntas bli inbetalt efter avdrag för individuellt bedömda osäkra fordringar. Fordringar som är räntefria eller som löper med ränta som avviker från marknadsräntan och har en löptid överstigande 12 månader redovisas till ett diskonterat nuvärde och tidsvärdeförändringen redovisas som ränteintäkt i resultaträkningen.

Kortfristiga placeringar

Värdepapper som är anskaffade med avsikt att innehas kortsiktigt redovisas inledningsvis till anskaffningsvärde och i efterföljande värderingar i enlighet med lägsta värdets princip till det lägsta av anskaffningsvärde och marknadsvärde. I posten kortfristiga placeringar ingår aktier som innehas för att placera likviditetsöverskott på kort sikt.

Låneskulder och leverantörsskulder

Låneskulder och leverantörsskulder redovisas initialt till anskaffningsvärde efter avdrag för transaktionskostnader. Skiljer sig det redovisade beloppet från det belopp som ska återbetalas vid förfallotidpunkten periodiseras mellanskillnaden som räntekostnad över lånets löptid med hjälp av instrumentets effektivränta. Härigenom överensstämmer vid förfallotidpunkten det redovisade beloppet och det belopp som ska återbetalas.

Kvittning av finansiell fordran och finansiell skuld

En finansiell tillgång och en finansiell skuld kvittas och redovisas med ett nettobelopp i balansräkningen endast då legal kvittningsrätt föreligger samt då en reglering med ett nettobelopp avses ske eller då en samtida avyttring av tillgången och reglering av skulden avses ske.

Leasingavtal

Leasingavtal där de ekonomiska fördelar och risker som är hänförliga till leasingobjektet i allt väsentligt kvarstår hos leasegivaren, klassificeras som operationell leasing. Betalningar, inklusive en första förhöjd hyra, enligt dessa avtal redovisas som kostnad linjärt över leasingperioden.

Varulager

Varulagret värderas enligt inkomstskattelagens bestämmelser till det lägsta av 97 procent av anskaffningsvärdet och nettoförsäljningsvärdet. För råvaror ingår alla utgifter som är direkt hänförliga till anskaffningen av varorna i anskaffningsvärdet.

Ersättningar till anställda

Ersättningar utgörs av lön, sociala avgifter, betald semester, betald sjukfrånvaro, sjukvård och bonus. Kortfristiga ersättningar redovisas som en kostnad och en skuld då det finns en legal eller informell förpliktelse att betala ut en ersättning.

Kassaflödesanalys

Kassaflödesanalysen upprättas enligt indirekt metod. Det redovisade kassaflödet omfattar endast transaktioner som medfört in- eller utbetalningar.

Obeskattade reserver

Obeskattade reserver redovisas med bruttobelopp i balansräkningen, inklusive den uppskjutna skatteskuld som är hänförlig till reserverna.

Bokslutsdispositioner

Förändringar av obeskattade reserver redovisas som bokslutsdispositioner i resultaträkningen. Koncernbidrag redovisas som bokslutsdispositioner.

Soliditet

Eget kapital och obeskattade reserver (med avdrag för uppskjuten skatt) i förhållande till balansomslutningen.

Avkastning på totalt kapital

Resultat före avdrag för räntekostnader i förhållande till balansomslutningen.

Avkastning på eget kapital

Resultat efter finansiella poster i förhållande till eget kapital och obeskattade reserver (med avdrag för uppskjuten skatt).

Uppskattningar och bedömningar Not 2

BKE Telecom AB gör uppskattningar och bedömningar om framtiden. De uppskattningar för redovisningsändamål som blir följden av dessa kommer, definitionsmässigt, sällan att motsvara det verkliga resultatet. De uppskattningar och antaganden som innebär en betydande risk för väsentliga justeringar i redovisade värden för tillgångar och skulder under nästkommande år behandlas i huvuddrag nedan.

Inkurans i varulager

Bolagets försäljning av varor består i inköpta produkter. Det är en snabb teknikutveckling för de produkter som bolaget handlar med. Det finns ett lager av produkter för försäljning. Skulle teknikutvecklingen leda till att en produkt blir omodern finns det en risk för att priset senare måste sättas ner eller att produkter måste kasseras. I bokslutet görs nedskrivning för inkurans med 3% av anskaffningsvärdet vilket beräknas motsvara verklig inkurans utifrån en bedömning av nettoförsäljningsvärde på vissa artiklar. Att fastställa nedskrivingsbehovet är en väsentlig och svår bedömningsfråga.

TF

Not 3 Ersättning till revisorerna

	2016-05-01	2015-05-01
	$-2017 - 04 - 30$	$-2016 - 04 - 30$
PwC
Revisionsuppdraget		57 800
Övriga tjänster	40 000	29 300
Summa	40 000	87 100
We audit Sweden AB Revisionsuppdraget	70 000
Summa	70 000	$\underline{0}$
Not 4 Operationell leasing - leastagare
	2016-05-01	2015-05-01
	$-2017 - 04 - 30$	$-2016 - 04 - 30$
Framtida minimileaseavgifter, som ska erläggas avseende icke
uppsägningsbara leasingavtal:
Förfaller till betalning inom ett år	243 078	244 821
	243 078	244 821
Under perioden kostnadsförda leasingavgifter	244 821	256 136

Den operationella leasingen i företagets redovisning avser i allt väsentligt leasing av bilar.

$\mathcal{T}$

$\overline{ }$

Not 5 Löner, andra ersättningar och sociala kostnader

	2016-05-01	2015-05-01
	$-2017 - 04 - 30$	$-2016 - 04 - 30$
Medelantalet anställda
Kvinnor	8	9
Män	38	36
Totalt	46	45
Löner, ersättningar, sociala avgifter och pensionskostnader
Löner och ersättningar till styrelsen och verkställande
direktören	1740 036	1747388
Löner och ersättningar till övriga anställda	13 617 737	13 838 124
	15 357 773	15 585 512
Sociala avgifter enligt lag och avtal	5 170 795	4 8 1 1 1 2 0
Pensionskostnader för styrelsen och verkställande direktören	284 700	254 403
Pensionskostnader för övriga anställda	758 164	606 666
Totalt	21 571 432	21 257 701
Styrelseledamöter och ledande befattningshavare
Antal styrelseledamöter på balansdagen
Män	3
	$\overline{\phantom{0}}$
Totalt	$\overline{3}$	$\frac{3}{2}$
Bokslutsdispositioner Not 6
	2016-05-01	2015-05-01
	$-2017 - 04 - 30$	$-2016 - 04 - 30$
Återföring av periodiseringsfond	1 000 000	1 400 000
Avsättning till periodiseringsfond		$-400000$
Summa	1 000 000	1 000 000

$\overline{\phantom{0}}$

Not 7 Skatt på årets resultat

	2016-05-01	2015-05-01
	$-2017 - 04 - 30$	$-2016 - 04 - 30$
Aktuell skatt	$-3282314$	$-3892033$
Skatt på årets resultat	$-3282314$	$-3892033$
Redovisat resultat före skatt	14 522 515	17 458 366
Skatt beräknad enligt gällande skattesats (22%) Skatteeffekt av ej avdragsgilla kostnader Skatteeffekt av andra ej bokförda kostnader Skatteeffekt av andra bokförda intäkter Skatteeffekt av schablonränta på periodiseringsfond	$-3194953$ $-89591$ 5 0 1 3 -2 784	$-3840840$ $-48615$ 4989 352 $-7919$
Redovisad skattekostnad	$-3282315$	$-3892033$

Not 8 Koncessioner, patent, licenser, varumärken samt liknande rättigheter

	2016-05-01 $-2017 - 04 - 30$	2015-05-01 $-2016 - 04 - 30$
Årets aktiverade utgifter, inköp	791 356
Utgående ackumulerade anskaffningsvärden	791 356	0
Årets avskrivningar	$-89141$
Utgående ackumulerade avskrivningar	$-89141$	0
Utgående redovisat värde	702 215	$\overline{0}$

$\overline{\phantom{0}}$

Not 9 Byggnader och mark

	2016-05-01	2015-05-01
	$-2017 - 04 - 30$	$-2016 - 04 - 30$
Byggnader
Ingående anskaffningsvärden	11 211 882	10 265 402
Inköp	386 436	946 480
Försäljningar/utrangeringar	$-382289$
Utgående ackumulerade anskaffningsvärden	11 216 029	11 211 882
Ingående avskrivningar	$-2492091$	$-2293065$
Årets avskrivningar	$-227672$	$-199026$
Försäljningar utrangeringar	11 363
Utgående ackumulerade avskrivningar	$-2708400$	$-2492091$
Utgående restvärde byggnad	8 507 629	8719791
Mark Ingående anskaffningsvärden Årets förändringar:	1 563 097	1 563 097
Utgående restvärde mark	1 563 097	1 563 097
Markanläggning
Ingående anskaffningsvärden	753 834	753 834
Utgående ackumulerade anskaffningsvärden	753 834	753 834
Ingående avskrivningar	$-184912$	$-147221$
Årets förändringar -Avskrivningar	$-37691$	$-37691$
Utgående ackumulerade avskrivningar	$-222603$	$-184912$
Utgående restvärde	531 231	568 922
Utgående bokfört värde byggnad, mark och markanläggning	10 601 957	10 851 810
Taxeringsvärden för fastigheter	4 446 000	5 052 000

Not 10 Inventarier, verktyg och installationer

	2016-05-01 $-2017 - 04 - 30$	2015-05-01 $-2016 - 04 - 30$
Ingående anskaffningsvärden Årets förändringar	4 1 2 3 7 5 6	3 736 240
-Inköp	396 618	387 516
Utgående ackumulerade anskaffningsvärden	4 5 20 3 74	4 1 23 7 56
Ingående avskrivningar Årets förändringar	$-3329611$	$-2911854$
-Avskrivningar	$-381830$	$-417757$
Utgående ackumulerade avskrivningar	$-3711441$	$-3329611$
Utgående restvärde enligt plan	808 933	794 145

Förutbetalda kostnader och upplupna intäkter Not 11

	2017-04-30	2016-04-30
Upplupen provision	1 408 508	968 056
Övriga poster	938 991	5 622 435
	2 347 499	6 590 491

Aktiekapital Not 12

Aktiekapitalet består av 1000 st aktier med kvotvärde 100 kr.

$\sigma$

$\mathcal{A}$

$\overline{a}$

$\overline{\phantom{0}}$

	2016-05-01 $-2017 - 04 - 30$
Till årsstämmans förfogande står följande vinstmedel:
Balanserade vinstmedel Årets vinst	4 041 281 11 240 201
	15 281 482
Styrelsen föreslår att vinstmedlen disponeras så att
till aktieägarna utdelas 4000 kr per aktie i ny räkning överförs	4 000 000 11 281 482
	15 281 482
Not 14 Obeskattade reserver
	2017-04-30	2016-04-30
Periodiseringsfond tax 2012 Periodiseringsfond tax 2013 Periodiseringsfond 2013 Periodiseringsfond 2014 Periodiseringsfond 2015 Periodiseringsfond 2016	400 000 420 000 1 040 000 3 400 000 400 000	1 000 000 400 000 420 000 1 040 000 3 400 000 400 000
Summa	5 660 000	6 660 000

$\sigma$

÷

	2017-04-30	2016-04-30
Räntebärande skulder
Långfristiga skulder
Skulder till kreditinstitut	7985808	8 2 3 5 8 0 8
Summa	7985808	8 2 3 5 8 0 8
Kortfristiga skulder
Skulder till kreditinstitut	250 000	250 000
Summa	250 000	250 000
Summa räntebärande skulder	8 2 3 5 8 0 8	8 4 8 5 8 0 8
Förfallotider Den del av långfristiga skulder som förfaller till betalning senare än fem år efter balansdagen
Skulder till kreditinstitut	6985808	7 173 308
Summa	6985808	7 173 308
Not 16 Ställda säkerheter	2017-04-30	2016-04-30
För egna avsättningar och skulder
Avseende Skulder till kreditinstitut
Fastighetsinteckningar	10 234 000	10 234 000
Företagsinteckningar	4 000 000	4 000 000
Summa ställda säkerheter	14 234 000	14 234 000

$\mathcal{T}$

Not 17 Upplupna kostnader och förutbetalda intäkter

	2017-04-30	2016-04-30
Upplupna lönerelaterade kostnader	2 2 3 6 4 9 4	2 180 317
Upplupna sociala avgifter	702 707	662 365
Övriga poster	40 412	384 977
Summa	2 9 7 9 6 1 3	3 227 659

Karlstad 2017-06-14

Thomas Gustavsson Verkställande direktör

Peter Gustavsson

Daniel Råd

Vår revisionsberättelse har lämnats 2017-06- $\frac{14}{1}$ .

We Audit Sweden AB

Tobias Florell Auktoriserad revisor