Q2 2018

Jens Haviken, CEO Marius Drefvelin, CFO

21 August 2018

Techstep is purpose built to serve public and private enterprises with mobile solutions

Nordic IT company
Providing customers in Norway and Sweden with mobile solutions
Bundle hardware and value-adding software and services into subscription based, financed solutions
Market consolidator, building solutions platform through organic innovation, acquisitions and partnerships
Listed on the Oslo Stock Exchange

Q2 2018 highlights

Quarterly revenue growth of 39% year-over-year
Underlying EBITDA level reflects growth investments and integration costs
Awarded new contracts with a potential total value of NOK 191m in Q2 and NOK 523m in H1 2018
End-user base increased with 38% year-over-year to ~635,000 at the end of Q2 2018, providing a large platform for upselling
Acquisition of Wizor AS, a provider of high security solutions for mobile units
NOK 25m equity issue to finance acquisition and growth

Financials

Key figures Q2 2018

NOK 1 000	Q2 2018	Restated* Q2 2017	H1 2018	Restated* H1 2017	FY 2017
Revenues	252 888	182 219	485 166	327 437	789 473
EBITDA**	11 740	(2 503)	17 789	(7 836)	(735)
EBITA **	11 324	(2 714)	16 946	(8 491)	(2 125)
EBIT **	6 668	(7 968)	7 566	(17 454)	(23 147)
EBITDA margin (%) **	4.6%	(1.4%)	3.7%	(2.4%)	(0.1%)
EBITA margin (%) **	4.5%	(1.5%)	3.5%	(2.6%)	(0.3%)
Total Assets	704 168	676 478	704 168	676 478	765 477
Cash	23 782	70 645	23 782	70 645	35 278
Equity	450 290	459 058	450 290	459 058	450 110

*Restatement of previous equity interests in Nordialog Asker and granted share options to executive management. For details, see note 6 in the Financial Report for Q2/H1 2018 ** In relation with the purchase of BKE Telecom AB, a contingent liability was recognised. The contingent liability was dependent on the company reaching an accumulated EBITDA target ending June 2019. Based on current forecast it is the management's assessment that it is unlikely that the entire EBITDA target will be reached. The contingent liability is reduced by NOK 10 million, which is considered the best estimate currently available. The comparative figures in the same line include transactions cost and other one-offs of NOK 3.6 million in Q2 2017 and NOK 26.3 million in 2017

Revenue and EBITDA development

Revenue growth of 39% year-over-year
Seasonality impacting Q4 in particular
Norway ~73% of revenue, Sweden ~27%

▪ Low EBITDA level continues to reflect growth investments and integration costs

* EBITDA includes a reduction of a contingent liability related to the acquisition of BKE Telecom AB of NOK 10 million.

Quarterly revenue development: Hardware and Solutions

33% growth year-over-year
Growth both in Norway and Sweden
42% growth year-over-year
Growth both in Norway and Sweden

* Includes commission and bonus

Consolidated income statement

		Restated*		Restated*
NOK 1 000	Q2 2018	Q2 2017	H1 2018	H1 2017	FY 2017
Revenue	250 862	181 183	482 690	326 146	786 242
Other revenue	2 026	1 036	2 477	1 292	3 231
Total revenue	252 888	182 219	485 166	327 437	789 473

Cost of goods sold	(181 465)	(130 994)	(345 572)	(229 269)	(559 656)
Salaries and personnel costs	(51 621)	(33 759)	(99 047)	(61 754)	(144 943)
Other operational costs	(17 924)	(16 383)	(32 582)	(30 220)	(59 451)
Share of profit (loss) in joint ventures	(173)	-	(211)	107	223
Depreciation	(415)	(211)	(844)	(655)	(1 390)
Amortisation	(4 656)	(5 254)	(9 379)	(8 963)	(21 022)
Other income and expenses **	10 035	(3 586)	10 035	(14 137)	(26 381)
Operating profit (loss)	6 668	(7 968)	7 566	(17 454)	(23 147)

Remeasurement on equity interests	-	-	-	(5 356)	(5 356)
Financial income	161	3 854	323	4 432	6 211
Financial expense	(1 229)	(849)	(2 804)	(1 730)	(29 230)
Profit before taxes	5 599	(4 963)	5 086	(20 108)	(51 523)
Income taxes	1 328	531	1 631	1 060	3 846
Net income	6 927	(4 430)	6 717	(19 048)	(47 677)

* Restatement of previous equity interests in Nordialog Asker and granted share options to executive management. For details, see note 6 in the Financial Report for Q2/H1 2018 ** In relation to the purchase of BKE Telecom AB, a contingent liability was recognised. The contingent liability was dependent on the company reaching an accumulated EBITDA target by June 2019. Based on the current forecast, it is the management's assessment that it is unlikely that the entire EBITDA target will be reached. In Q2 2018, the contingent liability is reduced to the best estimate currently available. Comparative figures on the same line are mainly transactions costs.

Balance sheet

NOK 1 000	Q2 2018	2017
Intangible assets Tangible assets Financial assets	498 353 9 077 10 230	513 900 9 115 20 155
Inventories Accounts receivable Other receivables	14 312 127 578 20 835	20 715 156 663 18 766
Cash and cash equivalents	23 782	35 278
Total assets	704 168	765 477
Total equity	450 290	450 110
Deferred tax Non -current interest -bearing debt Other non -current debt	8 243 20 842 9 696	10 428 23 551 22 277
Current interest -bearing liabilities Accounts payable Tax payable Public taxes, provisions Other current liabilities	62 552 95 291 (144) 19 454 37 943	67 604 116 765 4 586 19 657 50 498
Total equity and liabilities	704 168	765 477

Intangible assets include goodwill of NOK 429m and customer relations of NOK 69m
Equity ratio of 64%
Non-current debt reduced by NOK 17.5 million, mainly related to reduction of contingent liability related to BKE and repayment of borrowings
Current interest bearing liabilities include factoring of NOK 36m, bank overdraft of NOK 20m and term loan of NOK 6m
Negative cash flow of NOK 5 million due to capital expenditure and changes in working capital
Net proceeds from the equity issue will be included in the cash balance in Q3 2018

Operations

Work is changing

employees want mobile tools

enterprises want simple and secure mobile solutions

Significant market potential driven by digitization

Our ~6,000 customers in private and public sectors in Norway and Sweden represent a large growth platform

DNB	REMA 1000	Löfbergs Lila	MENT	SAS	$\frac{NSB}{2}$	$\bullet$ Gjensidige	AM LUNDS	Ņ equinor	Gjensidige (1)
Torkla	IEQT	SECURITAS	Ur&Penn	Scandic	A BÆRUM KOMMUNE	Nasdaq	a Statkraft	Helmia bygger på förstende	Nordea
Svenska kyrkan	budbee	Jernbaneverket	CLAPOTEK1	Handelsbanken	Statens institutions styrelse SiS	BS	$\mathcal{F}'$	COOP	Onettbuss
W HYDRO	$\circ$ NORWEGIAN BROKER		posten	∙₩ Statens vegvesen	Försäkringskassan	Wallenstam	VOLVO	FORSVARE1	BANE NOR
Oslo kommune	SOS Alarm För ett tryggare samhälle	AKERSHUS	陳 ÖREBRO	AKERSHUS	X LULEA KOMMUN	AVINOR	FILIPSTADS 涡 KOMMUN	UNION $-20-$ JN.ON GRUPPER	ØSTFOLD
Tullverket	越事 Gävle kommun	S E B	Nordea Ejendomme	O	Eskilstuna Eskilstuna	IKEA	EUROSKO	SVEVIA	HELSE SØR-ØST
SYKEHUSINNKJØP	HELSINGBORG	aibel	$\overline{\mathbf{N}}$ Försäkringskassan	E(E)	Stockholms	ByggDialog	$\frac{1}{1111}$ BILLERUDKORSNÄS	Silà Region CIS Östergötland	schjærven
A Aleris	ELS mIDTH	C Göteborgs Stad Stad	SVERIGES MANA	HÅBO	SKF	Pareto	Recipharm cood for business	AP3 Tredje AP-fonden	多中國 IFV Inching materials Designed Trimade og Venetor

Large end-user base provides solid platform for upselling

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Hardware only Solution only Combined 589 635 460 574 613 Total unique end-users base '1000 users 19% 22% 20% 19% 18% 45% 47% 50% 47% 47% 36% 31% 31% 34% 35%

End-user growth of ~38% year-over-year
Increase in solutions-only users and combined users, according to the strategy
A customer base of more than 6,000 thousand hardware users that potentially could become solutions users also
Just beginning to see effects from cross sales

Note: From Q2 2018, the development in end-users is based on reported figures, not pro forma. Consequently, the effect of acquisitions is included in accordance with the completion of the transaction.

High level of sales activities in the quarter

New contracts awarded H1 2018

Potential value in NOK million and # new contracts

Key Q2 contract

Framework agreement (with Telenor), for delivery of mobile solutions to Agrikjøp's member organisations
3 years-duration + options of 2 years extension with annual renewal
Estimated value of NOK 75 million for Techstep (excl. options)

Techstep making work mobile with Telenor

Techstep has signed an agreement with Telenor to deliver solutions in three targeted sectors
Education
Healthcare
Retail
Make digital solutions and mobile tools available for the organisations, to improve and enhance efficiency

Mobile unit security rising to the top of the agenda

Wizor adds market-leading and secure solutions for mobile units

Background

A Nordic supplier of encrypted and secure solutions for mobile phones
Long experience with mobile unit control, encryption and IT security solutions for mobile platforms
Exclusive agreements with BlackBerry and Secusmart in Norway secures access to unique, world-leading encryption technology and certified secure solutions and applications
BlackBerry UEM: the leading and most secure EMM solution on the market
SecuSUITE: an encrypted secure speech and data solution for mobile phones and tablets, certified by NSM and NATO (up to a defined level)
Serves large customers subject to high security, including Oslo Stock Exchange, the Courts and Rolls Royce Marine
Founded in 2002, offices in Oslo and Stockholm, 6 FTEs

Acquired eight companies with hardware and solutions businesses since November 2016

Techstep is purpose built to serve customers with simple and secure mobile solutions

Priorities in 2018

Increase profitability
Integrate acquired companies
Align everyone behind one brand
Build a shared, strong company culture

Summary & outlook

39% total revenue growth
Solution sales growing 42%
TBD in alignment with highlights ▪ The Wizor acquisition extends the Techstep solution portfolio enabling us to meet the highest demand for mobile security.
Integration and consolidation of acquired companies key to continue growth and strengthen profitability

Appendix

Top 20 shareholders at 20 August 2018

NAME	SHAREHOLDING	% SHARE
DATUM AS	31 817 975	20.64%
MIDDELBORG INVEST AS	30 517 764	19.79%
SKANDINAVISKA ENSKILDA BANKEN AB	4 991 100	3.24%
CIPRIANO AS	4 968 835	3.22%
SKARESTRAND INVEST AS	4 563 097	2.96%
PALOS NORGE AS	3 966 667	2.57%
DOVRAN INVEST AS	3 763 372	2.44%
JYST INVEST AS	3 763 372	2.44%
TINDE INDUSTRIER AS	3 763 372	2.44%
TIGERSTADEN AS	3 578 360	2.32%
ZONO HOLDING AS	3 000 007	1.95%
SÅ&HØSTE AS	2 925 936	1.90%
TVENGE TORSTEIN INGVALD	2 700 000	1.75%
NOMO HOLDING AS	1 946 253	1.26%
NORDIALOG ENSJØ AS	1 946 253	1.26%
UNIFIED AS	1 849 457	1.20%
VERDIPAPIRFONDET DNB SMB	1 771 969	1.15%
RAKNES HOLDING AS	1 649 348	1.07%
DATUM VEKST AS	1 600 000	1.04%
EUROCLEAR BANK S.A./N.V.	1 587 303	1.03%
Total number owned by top 20	116 670 440	75.67%
Other shareholders	37 517 857	24.33%
Total number of shares	154 188 297	100%

Board of Directors

Einar J. Greve – Chairman of the board (since 2016)

Mr. Greve has served on the Board in Techstep since November 2016. Mr. Greve works as a strategic advisor at Cipriano AS and has previously worked as partner of Wikborg Rein & Co and as Partner of Arctic Securities ASA. Mr. Greve has held and holds various positions as chairman or director in several listed and unlisted companies. He holds a degree in law (cand.jur) from the University of Oslo

Kristian Lundkvist – Board member (since 2016)

Mr. Lundkvist has served on the Board of Techstep since November 2016. Mr. Lundkvist is the CEO and founder of Middelborg AS, a corporation with roots from the retail business in the telecom industry, which has grown into a diversified holding company including investments in real estate, equities, and shipping. Middelborg AS is a long-term industrial owner who actively participates in the value creation of the companies in the portfolio, especially business development, optimization of capital structures and networking. His directorships are including but not limited to NRC Group ASA (board member), Middelborg AS (chairman) and Folksom (board member).

Stein Erik Moe - Board member (since 2016)

Mr. Moe has served on the Board of Techstep since November 2016. Mr. Moe is the CEO and co-founder of Gture AS, a digital services company. Mr. Moe has over 27 years of experience with Accenture, and was a global lead in the Technology, Media and Communication division. He has led large-scale projects and transformations, cross strategy, technology, organization and business processes. His directorships are including but not limited to Gture AS (Chairman), Gvalueinvest AS (Deputy Chairman), GoDigitalChina AS (board member) and Digitread AS (Board member). He holds a degree in Computer Science from the University of Strathclyde in Glasgow, and courses from BI Norwegian Business School.

Ingrid E. Leisner - Board member (since 2016)

Ms. Leisner has served on the Board in Techstep since January 2016. Ms. Leisner's directorships over the last five years include current board positions in Storage Group ASA, Spectrum ASA, Maritime and Merchant ASA. Ms. Leisner has a background as a trader of different oil and gas products in her 15 years in Statoil ASA. Her years of experience and skills within business strategy, M&A, management consulting and change management has been very valuable when serving on the board of several companies listed on Oslo Børs. She holds a Bachelor of Business degree with honors from the University of Texas in Austin.

Anders Brandt - Board member (since 2018)

Mr. Brandt has more than 20 years of experience in international entrepreneurship, technology, venture capital and digital services. He is managing partner in the venture capital fund Idekapital, and has co-funded and exited numerous companies including DinSide, OMG, Viken Fibernett, Mytos, Meshtech and Bubbly Group. Brandt has 14 years of board experience of listed companies on Oslo Børs and Nasdaq Stockhol, whereof several tech companies.

Toril Nag - Board member (since 2018)

Ms. Nag is Group Executive Vice President, responsible for customer service and the telecommunications business area of the Lyse Group. She holds extensive experience in telecom and digital service, as well as banking and finance. She has held a number of board appointments in technology, energy and R&D-related companies, and her directorships includes Dolphin Group ASA, IKT-Norge, Kolumbus AS and Altibox AS. Nag is a qualified civil engineer in Computer Science from the University of Strathclyde and has further education in management from the Norwegian Business School BI.

Management team

Jens Haviken – CEO

Mr. Haviken is an experienced executive within consulting, managed services, software and hardware distribution. He has a proven track record of developing, rebuilding and streamlining operations of companies in the ICT sector. Prior positions held by Haviken includes VP Services and Solutions and Country Manager at Dustin Group AB (publ). and various Director roles at Microsoft and Accenture.

Erik Haugen – Chief Commercial Officer

Mr Haugen is an international business professional, bringing with him broad commercial experience. He spent spent twelve years in London working with focus on sales, marketing and business management for companies like Pioneer and Sony Ericsson. Subsequently he moved into finance and professional services sales at Lindorff AS (now Intrum) in 2011 where he has been responsible for strategic sales, key account management and business development for a large portfolio of clients within telecoms, utilities, trade, SME and public sector.

Marius Drefvelin – CFO

Mr. Drefvelin joined Techstep in January 2017 and was previously the Group CFO of Creuna, a leading Nordic technology and communications consultancy firm with 350 employees. He has been with Creuna since 2012. During 2010-2012, he was a financial advisor at Deloitte, working with mergers, acquisitions and IPOs. Before this, he worked at Jebsen Asset Management from 2007-2009. During 2001-2007, Mr. Drefvelin worked at KPMG, also working with transactions.

Mads Vårdal – Chief Innovation Officer

Mr Vårdal has been with companies within the Techstep sphere for more than eleven years. He came from a central position in Teki Solutions AS and has been a leading figure for the development of SmartWorks. He has previously had a leading position in Nordialog Skøyen AS and CEO in Buskerud Tele AS.

Inge Paulsen – Chief Operations Officer

Mr. Paulsen is an experienced executive manager with a proven track record from companies like Clear Channel, Eltel Networks/Sønnico Tele, Infratek/Hafslund, Implement and Accenture. His broad experience comes from heading strategic business development projects in venture businesses or turn around cases as well as holding various executive positions responsible for profit & loss.

A complete stack of solutions improving total-cost-ofownership (TCO) and lower risk to the customer

Traditional

Buy hardware, software, connectivity, platform, support separate

Mobile as a Service

A "one stop shop" solution for the digital workplace

✓ Lower total cost of ownership for customers
✓ Single point of contact, reduces operational risk
✓ Inherent focus on quality and functionality rather than price

Disclaimer

This presentation (the "Presentation") has been prepared by Techstep ASA ("Techstep" or the "Company" and together with its subsidiaries the "Techstep Group"). The Presentation has been prepared and is delivered for information purposes only. It has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated market place.

The contents of the Presentation are not to be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should consult with its own professional advisors for any such matter and advice.

The Company makes no representation or warranty (whether express or implied) as to the correctness or completeness of the information contained herein, and neither the Company nor any of its subsidiaries, directors, employees or advisors assume any liability connected to the Presentation and/or the statements set out herein. This Presentation is not and does not purport to be complete in any way. By receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the Company, its financial position and prospects and that you will conduct your own analysis and be solely responsible for forming your own view of any refinancing and the potential future performance of the Company's business.

The information included in this Presentation may contain certain forward-looking statements relating to the business, financial performance and results of the Techstep Group and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely views and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any other company in the Techstep Group, or any of its advisors or any of their parent or subsidiary undertakings or any such person's affiliates, officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company and its advisors assume no obligation to update any forward-looking statements or to conform these forward-looking statements to the Techstep Group's actual results. Investors are advised, however, to inform themselves about any further public disclosures made by the Company, such as filings made with Oslo Børs or press releases.

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This Presentation speaks as of the date set out on the front page, and there may have been changes in matters which affect the Techstep Group subsequent to the date of this Presentation. Neither the issue nor delivery of this Presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Techstep Group have not since changed, and the Company does not intend, and does not assume any obligation, to update or correct any information included in this Presentation.

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