Techstep ASA — Earnings Release 2023

May 16, 2023

Techstep ASA: Q1 2023 results

Techstep ASA: Q1 2023 results

Highlights from the first quarter:

Increasing recurring revenue base with 15% growth y/y and 3% growth sequentially

· Total revenue of NOK 292 million, down 16% y/y due to decline in Hardware

sales

· Recurring revenue annualised of NOK 312 million, up from NOK 271 million in

Q1 last year

· ARR from Own Software at NOK 113 million, up 14% y/y

Profitability improving, second consecutive quarter with positive EBITA adj.

· Net gross profit margin up from 27% to 31% y/y due to growth in higher

margin software business and advisory & services business

· Profitable on EBITA adj. of NOK 4.1 million due to a 18% y/y decline in

operating costs and personnel expenses

Stable commercial momentum and new solutions added to the SmartControl portfolio

· Re-awarded a frame agreement with Sykehusinnkjøp HF worth NOK 650 million, a

potential doubling of previous contract value

· Launched two new Managed Services solutions in the SmartControl portfolio,

resulting in two larger contracts with a combined total contract value of NOK

2.1 million recurring revenue per year

· High tender activity and growing interest from the public sector, for

private sector the conversion to sales is slower than anticipated

"First quarter showed positive development in our underlying business, with

growth in recurring revenue and improving profitability, but we are not yet

where we want to be. We see growing interest in Techstep's products, both from

the private and public sector, but conversion to actual sales has been slower

than anticipated in the quarter. We are addressing this with stronger focus on

sales execution, upcoming product launches and continuous improvement of our

processes and go-to-market approach. In addition, the work with streamlining the

organisation and optimising the cost base continues. Things are developing in

the right direction, and with some patience I am confident that we will succeed

with the transformation of Techstep into a profitable software-led, recurring

services company and translate this into a commercial success", says CEO Børge

Astrup.

Material

Please find the report and presentation for Q1 2023 enclosed.

Presentation and Q&A:

CEO Børge Astrup and CFO Ellen Solum presents the results in a pre-recorded

webcast, can be accessed by clicking

here (https://www.youtube.com/watch?v=Nr220N3eAyk)

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

clicking here (https://teams.microsoft.com/l/meetup

-join/19%3ameeting_MWRkNGQ1ZDctYWY0ZC00NTlmLTkzZWQtM2NlYWQwYTA1ZDY0%40thread.v2/0

?context=%7B%22Tid%22%3A%2256b3dd67-66b5-4d6a-9954

-22469dfcf18b%22%2C%22Oid%22%3A%22b6ba7024-f6bb-46f2-a53e

-115dc59416a5%22%2C%22IsBroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btyp

e=a&role=a)

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

Ellen Solum, CFO, Techstep ASA: +47 976 66 717

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 around 300 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 2022 revenues, and is listed on the

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

www.techstep.io/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 Marie Christophersen, Financial Analyst / Investor

Relations, Techstep ASA, on 16 May 2023 at 07:00 CEST.