Techstep ASA — Earnings Release 2020

Feb 12, 2021

Techstep ASA: Q4 and FY 2020 results

Techstep ASA: Q4 and FY 2020 results

·

Execution of growth strategy and successful acquisitions drive the financial

results

· Stable full-year 2020 revenues of NOK 1 143 million delivered through

business model transition from lower margin hardware sales to higher margin

services

· Gross profit of NOK 149 million in the quarter and NOK 378 million for the

full year, compared with NOK 75 million in the fourth quarter and NOK 279

million for the full year 2019

· EBITDA adjusted increased to NOK 51 million in the quarter and NOK 96

million for the full year, compared with NOK 7.5 million in the fourth quarter

and NOK 29 million for the full year 2019

· ARR increased to NOK 63 million, including ARR from newly acquired Optidev

of NOK 24 million, up from NOK 37 million in the fourth quarter 2019

· Signed three new contracts for Techstep's software-based managed mobility

service 'Flow', with an estimated value of NOK 25 million and 3,500 users

Commenting on the Q4 and FY 2020 report, Jens Haviken, CEO of Techstep says:

"2020 was both transformative and a strong year for Techstep, despite the

challenges the pandemic presented to us all. We delivered on our growth strategy

with sharp focus on helping customers adopt our Managed Mobility Services (MMS)

offering, as well as acquisitions and Nordic expansion. Moving into 2021, our

team and market position are even stronger with two new great companies being

integrated into Techstep. Being well positioned in an MMS market that is

expected to experience strong growth, we are excited about the many

opportunities ahead" said Jens Haviken, Techstep CEO.

"The months that have passed since the pandemic broke out, have indeed shown us

what a workforce can achieve even when outside the normal office environment.

But it has shown us even more what is possible to achieve with mobile technology

for that large part of the workforce that don't have an office - the deskless

worker. Techstep is purpose-built to service the mobility needs of enterprises

and their workforce, regardless of how and where their employees work.

At the same time, Managed Mobility Services (MMS) is a market in its early

stages. And while we are positioned for leadership in the Nordic region, we

continuously need to educate our customers and the market, as well as

relentlessly making sure that our solutions deliver great customer, employee and

end-user experiences. In short, we need to ensure that our solutions are easy to

use and delivers clarity in an otherwise complex digital reality.

We want to help enterprises and the Nordic workforce experience great MMS

-solutions, and our ambition is to manage more than 1 million devices by 2025.

With more devices under management, we can drive our value creation further by

adding services and solutions. Techstep's MMS-offering is based on a service

stack that can be combined into bundled solutions, and we will grow gross profit

by ensuring that existing, and new customers, adopt this MMS-offering. In

addition, we aim to add further customer value through the sale of new services.

We are confident that our mobility services and MMS-solutions will be

increasingly adopted across the Nordics, because we have clear and very strong

value propositions to our customers: Helping enterprises reduce cost, increase

productivity, transform employee capabilities and enhance their engagement,

driving business value and revenue growth, while at the same time delivering on

their ESG goals.

Providing Managed Mobility Services that benefit workers, enterprises, society

and our planet, energizes Techstep's team of 300 dedicated mobility experts

every day, and we are highly motivated to continue delivering on our growth

journey and create stakeholder value in the years to come", Jens Haviken adds.

Material

Please find the report and presentation for Q4 2020 enclosed.

Presentation and audiocast:

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

physical meetings, the presentation will be prerecorded as an audiocast with

slides. The presentation is released today at 07:00 CET and is delivered in

English by CEO Jens Haviken and CFO Marius Drefvelin. Link to audiocast:

https://youtu.be/5hmpoxoWXEc

The quarterly report and presentation will be made available on the company's

website www.techstepasa.no and www.newsweb.no.

The subsequent Q&A session will take place as a virtual event facilitated by

Arctic Securities on 12 February 2021 at 10:00 CET. Please join via the

following link: http://bit.ly/3q49HhD

For more information please contact:

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

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

About Techstep ASA

Techstep is purpose-built to become a leading Managed Mobility Services provider

in the Nordics. Techstep combines device management, software, hardware and

connectivity into 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 290 employees based

in Norway, Sweden and Denmark, serving 550+ enterprise customers 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.