Techstep ASA — Earnings Release 2022

Aug 19, 2022

Techstep ASA: Q2 and H1 2022 results

Techstep ASA: Q2 and H1 2022 results

Highlights from the second quarter:

Techstep strengthening its position in a growing global managed mobility market

· Recognised as a global challenger by Gartner in a market with double digit

growth

· Techstep last twelve months revenues of NOK 1.3 billion and record recurring

revenues highlights position

Financials reflect transformation phase, with recurring revenues at record level

in line with software, recurring services, and M&A focused growth strategy

· Total revenue of NOK 317.2 million (324.7), gross profit of NOK 111.9

million (113.9) and adjusted EBITDA of 12.2 million (13.3)

· Recurring revenue annualised of NOK 281 million of which Own software ARR of

NOK 101 million with 90% gross margin

· In addition, NOK 10 million from recent software wins, not yet included in

ARR

Strong commercial momentum

· 11 new Managed Mobility Services (MMS) contracts in Q2 adding NOK 14 million

in contract value and NOK 9 million in annualised recurring revenue expected to

be delivered over the coming quarters

· Growing with existing and new clients, second quarter wins include Equinor

and Bane Nor

Continued transformation to unlock profitable MMS growth at scale

· Simplification and standardisation of product portfolio and solutions

· Aligning organisation around simplified offering to accelerate growth

· Streamlining cost base to improve profitability

"In Q2, our underlying factors continued to develop in the right direction with

improved sales bookings, improved customer implementation speed, and increased

share of software and recurring revenue. Also, we delivered record recurring

revenues from Own Software, Advisory & Services and Hardware-as-a-Service. This

is in line with our growth strategy focused on software, recurring services, and

M&A", said Techstep CEO Børge Astrup.

"We have a sharp focus on simplifying the company and creating one Techstep.

Over the years we have acquired and combined multiple companies, resulting in

many different products and solutions. To strengthen the commercial momentum, we

have reorganised the company to bring our simplified and standardised product

portfolios to our customers in a better way, improving value creation for

customers and Techstep. Performance management in the organisation is now

closely linked to customer success, recurring services, and revenue growth, and

ultimately Techstep's value creation and profitability. Going forward, continued

standardisation, and streamlining of all parts of Techstep will be key for us to

be able to scale and deliver on our ambitions", Astrup concluded .

Material

Please find the report and presentation for Q2 and H1 2022 enclosed.

Presentation and Q&A:

CEO Børge Astrup and CFO Anita Huun presents the results in a pre-recorded

webcast, available from this link: https://youtu.be/jEoyvf_I1v0

A live Q&A session will take place today at 8:00 am CEST and can be accessed via

the following link: https://bit.ly/3QhpDdF

Questions for the Q&A session may be submitted in advance to ir@techstep.no, or

live during the session itself. A recording of the Q&A-session will be made

available on techstep.io after the live event has concluded.

For more information:

Børge Astrup, CEO, Techstep ASA: +47 928 27 676

Anita Huun, CFO, Techstep ASA: +47 924 11 563

Erik Haugen, Chief Transformation Officer, Techstep ASA: +47 967 90 101

About Techstep ASA

Techstep is a complete mobile technology enabler, making positive changes to the

world of work; freeing people to work more effectively, securely and

sustainably. We help customers who want to work smarter, while also delivering

on their ESG commitments. With more than 350 employees based in Norway, Sweden,

Denmark and Poland, we serve more than 2 000 enterprise customers in Europe.

Techstep had NOK 1.3 billion in full year 2021 revenues, and is listed on the

Oslo Stock Exchange under the ticker TECH. To learn more, please visit

techstep.io (http://www.techstepasa.no)/investor.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 of the Norwegian Securities Trading Act. This stock exchange

announcement was published by Cathrine Birkenes, Head of Sustainability and

Compliance, Techstep ASA, on 19 August 2022 at 07:00 CEST.