Techstep ASA — Earnings Release 2022

May 12, 2022

Techstep ASA: Q1 2022 results

Techstep ASA: Q1 2022 results

Highlights Q1 2022

· Revenue of NOK 346.2 million, representing 13% year-over-year growth,

organic revenue growth was 15% due to divestment of non-core business in Q4

2021

· Strong growth within Own Software, Hardware-as-a-Service (HWaaS) and

Hardware one-off sales year-over-year

· Gross profit of NOK 113.6 million (NOK 114.0 million) reflects product and

customer mix in the quarter, with a strong quarter for hardware one-off sales

with lower overall margins

· EBITDA adjusted of NOK 14.1 million (NOK 13.3 million) due to stable

development in reported gross profit

· Transformation into a software-driven recurring services company

progressing, but financial results are lagging due to implementation and lead

times

· Recurring revenues up 2% quarter-on-quarter to NOK 270 million (annualised),

driven by Own Software, Advisory & Services and Hardware-as-a-Service

· Signed 17 new Managed Mobility Services (MMS) and upsell contracts with a

value of NOK 11 million in annualised recurring revenues expected to be

delivered over the coming quarters

· Increased commercial momentum with positive sales bookings and MMS contracts

backlog development, Q1 wins include Norwegian, Specsavers, Felleskjøpet, DHL,

ISS, and Postnord

· Launched rebranding reinforcing Techstep as a leading European enabler of

smarter mobile technology making people work more effectively, securely, and

sustainably

· Acquired remaining shares in HWaaS subsidiary Techstep Finance AS,

solidifying the recurring revenue MMS business

After the close of the quarter

· Announced acquisition of cybersecurity SaaS company Crypho, which sells end

-to-end encrypted mobile messaging and sharing software, expanding Techstep's

product offering to existing and new customers

"Techstep's transformation journey is progressing, and while our quarterly

result is not where we want it to be, I'm happy to see that the underlaying

factors are pointing in the right direction. As we are transforming the company

from one-off transactional sales to recurring revenues, we are focusing on

delivering high customer value through our services and products - every day.

Which in turn results in a mutual, recurring commitment between our customers

and Techstep", said Børge Astrup, CEO of Techstep.

"We have an exciting market opportunity ahead of us and we are sharpening our

products and go-to-market approach to capture it in the best possible way in the

years to come, in a market that has an expected annual double-digit growth",

said Børge Astrup, CEO of Techstep.

"To make the world of work smarter and more sustainable, we passionately believe

in the power of technology as it also helps our customers deliver on their ESG

commitments. We strongly believe in building sustainable solutions for today and

for the future, to deliver great value for our customers. Our solutions help our

customers to work smarter and purchase software and devices with a clear

conscience. To be able to succeed with lifecycle management, this needs to be

part of an automated system", Astrup concluded.

Material

Please find the report and presentation for Q1 2022 enclosed.

Presentation:

The presentation will be held as a pre-recorded webcast with slides. The

presentation, released today at 06:30 CEST, is held in English by CEO Børge

Astrup and CFO Anita Huun. To watch the presentation please use this link:

https://youtu.be/wVIXhEQE72Q

A Q&A session will take place as a virtual event today at 10:00 CET. Please join

the session via the following link: https://bit.ly/39u7k4h

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

live during the session itself.

A recorded version of the Q&A-session will be made available on techstep.io

shortly after the live event has been 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 subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.