Techstep ASA — Earnings Release 2019

Feb 13, 2020

Techstep ASA: Q4 and full-year 2019 results

Techstep ASA: Q4 and full-year 2019 results

Highlights Q4 and full-year 2019

· 2019 financial results reflect transitional effects and investments related

to the strategy of becoming a software and IP driven provider of mobility

solutions

· Revenue was NOK 335 million in the quarter and NOK 1,132 million for the

full year, an increase from NOK 317 million in the fourth quarter and NOK 1,064

million for the full year 2018

· Gross profit was NOK 75 million in the quarter and NOK 279 million for the

full year, down from NOK 83 million in the fourth quarter and NOK 294 million

for the full year 2018

· EBITDA adjusted was NOK 7.5 million in the quarter and NOK 29.0 million for

the full year, compared to NOK 11.3 million in the fourth quarter and NOK 30.0

million for the full year 2018

· Net profit was NOK 11.4 million in the quarter and NOK -64.3 million for the

full year, compared to NOK 10.9 million in the quarter and NOK 21.3 million for

the full year 2018

· Net debt reduced from NOK 19.4 million at the end of 2018 to NOK 2.0 million

at the end of 2019

· ARR increased to NOK 37 million in the fourth quarter, up from NOK 35 fourth

quarter last year

· Launched evolved version of Techstep's mobile-as-a-service solution under

new name; "Flow", signed first Flow contracts with seven existing and one new

customer in the fourth quarter

· Increased ownership to 80% in subsidiary Techstep Finance AS to consolidate

complementary financing services

CEO comments

"In 2019, Techstep started a fundamental transformation to become a software-

and IP-driven mobility provider. This was the outcome of consolidation and

integration efforts over the last years, as well as development and experiences

harvested together with our customers. We have recognised that it is our

software and IP based solutions that differentiate us, and truly enable our

customers to harvest the benefits of mobile technology.

Our financial results in the fourth quarter and for the full year 2019 reflect

the effects of investing our time and money in transformation and development of

the solutions and organisation that will deliver profitable growth long-term.

We have now completed most of our technological transformation. Moving further

into 2020, all activities are aligned to bring our software and IP to our

existing customer base and select new customers. We have set a clear ambition of

increasing our customers' investment in mobility solutions by converting them to

Flow, and believe this will prove to be rewarding for them. We will also

continue to invest in organic development of our software and capabilities, as

well as continue to pursue M&A opportunities to maintain a leading offering that

makes us the preferred mobility enabler in the Nordics" says Techstep CEO Jens

Haviken.

Material

Please find the report and presentation for Q4 2019 enclosed.

Presentation and audiocast:

CEO Jens Haviken and CFO Marius Drefvelin will present the company's Q4 and full

-year 2019 results today at 10:30 am CET 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 audiocast.

Please join the Q4 2019 results audiocast by clicking here:

https://channel.royalcast.com/webcast/hegnarmedia/20200213_13/

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 211 employees based

in Norway and Sweden, serving close to 4,000 customers and 201,000 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