Techstep ASA — Earnings Release 2022

Feb 17, 2023

Techstep ASA: Q4 2022 results

Techstep ASA: Q4 2022 results

Highlights from the fourth quarter:

Signed extended agreement with ISS, with ARR of NOK 850 000 on own software

· In line with growth strategy to move customers from transactional to

recurring services, and providing the full value of the SmartDevice portfolio

· Agreement to be deployed in Q2/Q3, when customer goes live

Stable and flat development in Q4 and 2022, recurring revenue base increasing

· Q4 trending on par with full year, overall flat development in revenue and

small improvements in net gross profit

· Total recurring revenue up 3% sequentially and 14% yearly in Q4, driven by

NOK 7 million increase in ARR from Own Software to NOK 111 million, in line with

the company's strategic objective to lead with software and scale with recurring

revenue base

Cost optimisation on track, majority of impact visible from 2023. Q4 EBITA adj.

positive for the first time in eight quarters

· NOK 90-100 million cost optimisation plan implemented in Q4. One-time

restructuring charge of NOK 8.4 million booked, due to reduction of 45 employees

· Profitable on EBITA adj. for the first time in eight quarters, as cost

optimisation is filtering through. NOK 2.4 million in EBITA adj., due to a 6%

y/y decline in opex and salaries

Strengthening of the balance sheet, NIBD down NOK 112 million sequentially in Q4

· Capital raise of NOK 103 million strengthening the balance sheet and new

long-term financing creating flexibility

· Net Interest-bearing debt end of year at NOK 113 million, down 50%

sequentially

· Cash position at NOK 61 million at the end of the year

"2022 was all about getting the fundamentals and right structures in place,

setting us up for future success. Now, it is all about execution. We are

committed to turning Techstep profitable in 2023, returning value to our patient

shareholders and employees. We are moving from the investment phase to

extracting synergies, and our cost optimisation plan has been effectuated and

set into motion. Our 2025 ambition is to reach more than NOK 150 million in

EBITA adj., and more than double the size of revenue from our Own Software

portfolio, and we believe the turning point will start in 2023", said Techstep

CEO Børge Astrup.

Material

Please find the report and presentation for Q4 2022 enclosed.

Presentation and Q&A:

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

webcast, can be accessed by clicking here (https://youtu.be/hPU2sknS5gs)

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_MzdjMWJlZmItYzkxOS00MDMwLTkyNjQtMmU5YzRiMDQ5Mzk5%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

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

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

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 Marie Christophersen, Financial Analyst / Investor

Relations, Techstep ASA, on 17 February 2023 at 07:00 CEST.