Techstep ASA — Earnings Release 2019

Aug 21, 2019

Techstep ASA: Q2 and H1 2019 results

Techstep ASA: Q2 and H1 2019 results

Highlights second quarter 2019

· Q2 2019 revenues of NOK 270 million, an increase of 7% from NOK 253 million

in the same quarter of 2018

· Gross profit for the quarter was NOK 69.3 million, compared to NOK 71.4

million in Q2 2018

· EBITDA of NOK 6.4 million compared to NOK 11.7 million in Q2 2018 (which

included an earn-out reversal of NOK 10 million)

· Cash flow from operations amounted to NOK 3.0 million, compared to negative

NOK 3.4 million in Q2 2018

· Techstep was awarded new contracts with a potential total value of NOK 333

million in the second quarter of 2019, and NOK 517 million in H1 2019

· Terminated 2,000 SMB customer contracts in Norway to focus on enterprise

· Techstep has entered into a partner agreement with Mobit Norge AS to

distribute Techstep´s software solutions to the SMB market

CEO comments

"Techstep continues to deliver revenue growth. The potential value of contracts

signed in the first half of 2019 has surpassed half a billion Norwegian kroner,

and we are building a foundation to create value through solutions driven sales.

We see an increasing number of customers opting for combined solutions and MaaS.

We expect the enterprise market for managed mobility services to continue to

grow in the years ahead.

"We have decided to focus our operations in Norway on larger customers, where we

make the largest impact. As a consequence, we terminated 2,000 customer

contracts and entered into an agreement with Mobit to deliver our software

solutions in the SMB market. This allows us to concentrate our resources on our

core business, as well as it provides our smaller customers with a solid

partner. This is an important milestone", says CEO Jens Haviken.

Material

Please find the report and presentation for Q2 and H1 2019 enclosed.

Presentation and audiocast:

CEO Jens Haviken and CFO Marius Drefvelin will present the company's results at

10:00 am CEST at Hotel Vika Atrium, Munkedamsveien 45, in Oslo, Norway.

The presentation will be given in Norwegian, with supporting material in

English. The presentation can also be followed through live audio webcast.

Please join the Q2 and H1 2019 results webcast by clicking here:

https://webtv.hegnar.no/presentation.php?webcastId=98042749

A recorded version of the webcast will be made available on www.techstepasa.no

shortly after the broadcast has been concluded.

Further information from:

Jens Haviken, CEO, Techstep ASA: +47 930 90 070

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

About Techstep ASA

Techstep is positioning itself as a leading Nordic enabler of the digital

workplace. Techstep supplies hardware, software, connectivity and mobile device

management bundled as a managed service. This enables enterprises and their

employees to do their work across mobile devices and locations, with a high

degree of security and operational stability. Techstep has 217 employees based

in Norway and Sweden, serving close to 4,000 customers and 665,000 end users

across various industries in the private and public sectors. The company is

listed on the Oslo Stock Exchange. For more information, see www.techstepasa.no.