Techstep ASA — Earnings Release 2020

May 7, 2020

Techstep ASA: Q1 2020 results

Techstep ASA: Q1 2020 results

Highlights Q1 2020

· Stable quarter with limited impact from the COVID-19 pandemic

· Revenue was NOK 293 million, up from NOK 284 million in the first quarter of

2019

· Gross profit was NOK 80 million, up from NOK 75 million in the first quarter

of 2019

· EBITDA adjusted was NOK 12 million

· ARR of NOK 37 million from 207,000 end-users at the end of the quarter

· Signed six new Flow contracts with an estimated value of NOK 12 million

· Extraordinary market conditions reducing near-term demand, driven by

cautious private sector enterprises

· Digital transformation amplified and accelerated, mobility market

fundamentals improving long-term

· Sold Techstep's IT Operations and Support business for NOK 8 million in

April

· Focus on software- and IP-lead growth

CEO comments

"We are experiencing extraordinary times for society, people and workplaces, and

Techstep like other companies and organizations has taken swift actions to

respond and adapt to the situation. The nature of what we do, making work

mobile, makes us very well equipped to deal with the challenge, and to maintain

operations in a good way", says Techstep CEO Jens Haviken.

"When it comes to our business, our stable first quarter results reflect our

strategic development transforming into a software and IP-driven mobility

services provider. We are deliberately sharpening our focus, reducing revenue

and margin contribution from some areas, to prioritize our mobility-as-a-service

offering "Flow" that we believe will enable value creating growth for our

customers and Techstep in the coming years", Jens Haviken says.

Techstep has observed a mixed market picture since March this year, with higher

activities in some areas, while new demand from existing and potential customers

in heavily affected areas have softened. Overall, the initial effect on demand

has been soft and Techstep has mitigated the challenges by reducing costs and

capex accordingly.

"Looking ahead, we see mobility needs and trends being amplified and

accelerating, and we are positive that our mobility solutions will be more

relevant than ever once the crisis abates. At its core, our business is to

enable enterprises and employees to do their work across mobile devices in any

location with a high degree of security and operational stability", says Jens

Haviken.

Techstep continue to focus on its mobility-as-a-service offering "Flow" and

solutions sales, operational efficiency and investments in software and IP, as

well as pursuing M&A.

"2020 will be a very important platform for long-term success. What we do

matters to society, people and organizations", says Techstep CEO Jens Haviken.

Material

Please find the report and presentation for Q1 2020 enclosed.

Presentation and audiocast:

Due to the COVID-19 situation and the government's recommendation to limit

physical meetings, the presentation will be held as an audiocast with slideshare

only. The presentation will be given in English by CEO Jens Haviken and CFO

Marius Drefvelin today at 10:00 am CEST.

Please join the Q1 2020 results presentation via the following link:

https://techstep.eventcdn.net/2020q1/

Participants dial-in numbers:

Norway: +47 2350 0236 (Direct)

Sweden: +46 8505 5 8375 (Direct)

Denmark: +45 7872 3252 (Direct)

United Kingdom: +44 3333 009032

United States: +1 646 72 24956

A recorded version of the audiocast 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 212 employees based

in Norway and Sweden, serving close to 4,000 customers and 207,000 recurring

revenue 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