Techstep ASA — Earnings Release 2017

Aug 17, 2017

Techstep ASA: Q2 and H1 2017 results

Techstep ASA: Q2 and H1 2017 results

Highlights second quarter and first half 2017

- Stable Q2 2017 pro forma revenues of NOK 182.2 million (NOK

180.3 million); reflecting a y-o-y growth of 28% in solutions revenue

and 2.4% in hardware revenue, which is offset by a reduction in

commission and bonuses. The reduction relates to the transition to

new business model and focus on solution sales

- Pro forma adjusted EBITDA of NOK 1.8 million (NOK 10.7

million); mainly explained by a combination of stable total revenues

and increased costs related to growth investments, including

consolidation of group entities and customer offering in preparation

for further expansion

- Secured contract with Norwegian Nurses Organisation for

delivery of MaaS (Mobile as a Service) including hardware, mobile

asset management solution, training and support, and financing

- Awarded frame agreements with the Norwegian Tax

Administration, Akershus County Council and Asker Municipality for

deliveries of hardware and advisory and support services

- Pro forma end-user base increased from ~460,000 in Q1 2017 to

~490,000 in Q2 2017

- Completed acquisitions of the telecom mobility hardware

company Apro Tele og Data AS and the Swedish enterprise mobility

management company InfraAdvice Sweden AB

- Formally established Techstep Finance, a joint venture with

an experienced financing operating partner, and a key component of

the MaaS (Mobile as a Service) offering

- Strengthened Techstep's executive management team with Inge

Paulsen as Chief Operating Officer (from May 2017) and Erik Haugen as

Chief Commercial Officer (from 1 October 2017)

Subsequent events

- Signed an agreement to acquire the business telecommunication

equipment and services provider BKE TeleCom AB, to establish a

broader foundation for expansion in Sweden

- Signed an agreement to acquire 51% of the Swedish enterprise

mobility management (EMM) company Conneqted 365 AB, with an option

agreement to acquire the remaining 49%, to supplement Techstep's

current EMM offering with complementary compencies

- Techstep has, via Kjedehuset, been certified as "Apple

Authorized Enterprise Reseller", which is Apples new and highest

partner accreditation for the B2B market

"The Q2 figures reflect the ongoing consolidation of the companies

we acquired over the past quarters and related investments for

further expansion. Together with our newly established financing

company, Techstep Finance, we are combining our products and

solutions into our MaaS (Mobile as a Service) offering, which is a

one-stop-shop solution for the digital workplace. MaaS is already

attracting strong interest from existing customers wanting to

implement this solution", says Gaute Engbakk, CEO of Techstep.

"I am confident that we will see a positive effect on the

profitability from the turn of the year going forward. We are

experiencing positive feedback from current and potential new

customers who need help digitizing their business processes, as well

as a push from customers wanting pan-Nordic deliveries. Our most

recently announced acquisitions in Sweden, further expand our

customer base and will secure complete delivery capacity and

scalability of our business model in the Nordic countries", says

Engbakk

Material:

Please find the report and presentation for Q2 and H1 2017 enclosed.

Further information from:

Gaute Engbakk, CEO, Techstep ASA: +47 916 33 281

Marius Drefvelin, CFO, Techstep ASA: +47 958 95 690

Techstep ASA - we make workplace mobile

Techstep is positioning itself as a leading Nordic enabler of the

digital workplace. Techstep's unique "Mobile as a Service" (MaaS)

offering is a one-stop-shop solution, which combines hardware,

subscription & connectivity, mobile device management, managed

services and related software, in addition to financing. The MaaS

solution enables enterprises to let employees do their work across

mobile devices and locations, with a high degree of security and

operational stability. Techstep employs approximately 166 team

members based in Norway and Sweden, serving close to 5,000 customers

and 490,000 end users across various industries in the private and

public sectors. The company had sales of approximately NOK 720

million in 2016, and is listed on the Oslo Stock Exchange. For more

information, please visit http://techstep.no/.