Interim report Q4 2021

Making work mobile

Highlights Q4 2021

● Revenue of NOK 384 million (NOK 399 million), quarterly decrease reflects transition to recurring revenue model and higher share of one-off deliveries in 2020
● Gross profit of NOK 123 million (NOK 146 million) reflect revenue development and realization of transactional hardware backlog
● EBITDA adjusted of NOK 25 million (NOK 51 million), reflecting gross margin in the quarter
● Recurring revenues in the fourth quarter of NOK 266 million (annualized), including Own Software, Advisory & Services and Hardware-as-a-Service
● Focus on transformation from a transactional to a recurring revenue business model, driven by software and value adding services
● Signed 11 new managed mobility service contracts, with an estimated value of NOK 48 million and ~12,600 managed devices in the quarter
● Aligning new management team with software-led growth strategy, Anita Huun appointed CFO and Sheena Lim appointed CMO
● Divestment of non-core business unit, Voice & Contact Center, to streamline organisation and increase focus on core product offering

CEO comment

"Techstep continued on our longer-term transformation journey in the fourth quarter to be the leading European mobile technology enabler for customers that want to work smarter and more sustainable. We are transforming our business model from one-off transactional sales to having full focus on selling our product offering as a recurring revenue bundle. We have an exciting market opportunity in front 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 annual double-digit growth.

There is a lot of activity ongoing, during March will we launch the rebranding of Techstep. The rebranding will give a clearer message, storyline and position of how we support customers through smarter mobile technology for a brighter tomorrow through our "Smart" product portfolio.

We closed 11 managed mobility services contracts in the quarter, and we are obviously very happy with the vote of confidence shown by Norway's largest financial services group, DNB. We are also pleased to see our pipeline of opportunities and look forward to converting further opportunities into new business and added commercial momentum.

We are confident that our sales development over time will be very positive. We are streamlining the organisation and strengthening the management team with specialist roles in both marketing and sales. With the restructuring, we are also shifting our investment towards the commercial division and optimizing the supporting systems and leads generating initiatives.

We passionately believe in the power of technology to drive positive change - for organisations right now and for the future as they at the same time deliver on their ESG commitment. Mobile technology makes employees happier and more productive by freeing them up to work smarter. That's not just great for organisations but for the planet too. By working hard to make our solutions genuinely sustainable

we're making good on our responsibility to future generations. We will translate this into commercial success stories for our customers, and for Techstep.

At the same time, Techstep's financial results are not at the level we want to see them. We want higher sales and improved profitability. Our 2021 results reflect ongoing restructuring and transformation but will start to improve once our sales pick up, and our recurring revenue business model and higher margin software and value-adding services are increasingly adopted by our customers across our markets. We will need to complete the organisational restructuring, implementation of our new ERP and CRM systems, and not least get our new management team in place to accelerate our market penetration, drive sales and improve profitability materially.

To succeed with the ongoing transformation into a software and value-adding services company, we are streamlining the organisation and aligning the company around our products and the customer journey. Performance management will be closely linked to customer success, recurring services and revenue growth, and ultimately value creation and profitability. We broke the 100 million ARR mark on our own Software IP with the deals signed in Q4. An important milestone for us.

Making our world a little smarter, happier and more sustainable is how we'll know we're getting things right" says Børge Astrup, CEO of Techstep" says Børge Astrup, CEO of Techstep.

About Techstep

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 has 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 www.techstepasa.no

Key Figures

(Amounts in NOK 1 000)	Q4 2021	Q4 2020	FY 2021	FY 2020

Revenues	384 117	399 284	1 304 907	1 142 866
Annual Recurring Revenue – own IP (ARR)	97 473	63 329	97 473	63 329

Gross profit	122 905	148 506	459 481	378 287

EBITDA adjusted1	25 300	50 599	69 231	95 640
EBITDA	23 437	54 615	52 043	104 455
EBITA	(5 448)	14 049	(56 023)	17 122
EBIT	(23 817)	3 580	(110 498)	(10 771)
Net profit (loss) for the period	(25 799)	(10 884)	(98 565)	(23 557)

EBITDA adj. margin (%)	6.6%	12.7%	5.3%	8.4 %
EBITDA rep. margin (%)	6.1%	13.7%	4.0%	9.1 %
EBITA margin (%)	-1.4%	3.5%	-4.3%	1.5 %
EBIT margin (%)	-6.2%	0.9%	-8.5%	(0.9 %)
Net profit (loss) for the period (%)	-6.7%	-2.7%	-7.6%	(2.1 %)

Cash	50 350	27 203	50 350	27 203
Net interest-bearing debt	121 601	166 838	121 601	166 838
Capex2	23 913	7 812	48 882	21 386

1) EBITDA adjusted in excludes non-recurring items such as M&A and restructuring costs.

2) Capex includes software development and IT related capex, and not hardware-as-a-service to customers, booked as capex under IFRS 16.

The Optidev acquisition is included in the financial statements from Q4 2020 and the Famoc acquisition is included in the financial statements from Q3 2021.

Operational review

Main developments

In the last quarter of 2021, Techstep has focused on pursuing its growth strategy by transforming into a recurring business model and becoming a software-driven Managed Mobility Services (MMS) leader. Techstep continued to improve and refine its product offering, designed as a recurring services bundle that integrates market leading IP, software and mobility expertise to fulfil the needs of the customer.

Techstep continued to streamline the organisation, with focus on infrastructure, the management team, and the sales division.

As a part of streamlining the organisation, Techstep has improved integration between the different geographical sales departments. Moreover, Techstep has invested in new ERP and CRM systems to improve organisational accuracy and efficiency.

The company has developed a clear go-tomarket strategy and increased education about its product offering, both externally and internally. "Techstep Masterclass" is one initiative that seeks to educate the customers about Techstep's product offering. Further, the company has strengthened its development department to improve its own product offering and reduce the dependence of 3rd party software. Of 384 employees, 48 are working on R&D, of which 30 employees in Poland and 18 in Norway and Sweden.

In the fourth quarter, Techstep announced the hiring of a new CFO, Anita Huun. Huun will support the new management structure by evolving Techstep and its product offering to increase commercialisation and customer adoption.

Techstep expects that the effect of the initiatives taken will materialise in both

increased sales and a higher recurring share over the medium term.

The integration of Famoc started in the beginning of the previous quarter and is progressing according to plan. In Sweden, the integration of eConnectivity and Optidev is being finalised.

Sales development

Techstep experienced sales improvements in the quarter with several large customer wins, mainly driven by demand for our own software. The company signed eleven new MMS contracts with a total estimated value of NOK 47.4 million and ~12,600 managed devices. DNB was the largest contract in terms of users and contributed with 9,000 who will be onboarded during 2022.

Among the MMS solutions sold in the quarter was 'Flow', a recurring services bundle consisting of software, hardware devices and services. More specifically, 'Flow' includes the Origo Business Cloud software, mobile devices and device service, support, financing and lifecycle management. Origo is Techstep's proprietary cloud software-as-a-service solution, expected to be a core value driver going forward. Techstep Finance is Techstep's own leasing solution that adds customer benefits like lower total cost of ownership.

Techstep's MMS offering also includes TrueMobile, a cloud-based mobile software solution platform. Through apps it makes work performed by deskless workers traceable. The software application can be paired with a broad selection of certified hardware and can be tailored to the customer's specific needs. TrueMobile also supports back-office personnel by web-based functions in addition to a powerful integration platform enabling integration with the client's business systems.

With the recent acquisition of Famoc, the MMS offering also includes Techstep's proprietary software Famoc Manage. Famoc Manage simplifies deploying, configuring and managing all devices by delivering IT control in one place. A platform that offers a wide array of services such as creating profiles, enforcing restrictions, installing applications, setting PIN and password policies.

Techstep's annual recurring revenue base (ARR¹ ) was NOK 97.5 million, whereof MMSrelated ARR was 69.6 million at the end of the quarter. ARR in the fourth quarter of 2020 was NOK 63.3 million. As compared to the fourth quarter 2020, this represents a 54% growth year-over-year and includes the acquisition of Famoc, which closed early third quarter this year. Organic growth in MMS-related ARR was 8% year-over-year. Techstep's ARR had a gross margin of ~87% – sold either as a whitelabel service through partners or directly by Techstep. Total annualized recurring revenue portfolio was NOK 266 million in the quarter, up from NOK 259 million in the previous quarter. The ARR portfolio includes recurring revenue streams from Own Software, Advisory & Services and Hardware-as-a-Service.

Total Origo users were ~53,000 at the end of the fourth quarter 2021, up from ~43,000 users at the end of 2020.

Strengthen mobility offering

Techstep is focused on evolving its product offering and has introduced new MMS solutions with official launch in the first quarter of 2022, consisting of SmartControl, SmartWorks and SmartDevice.

SmartControl is Techstep's management software that configures mobile devices, optimises apps, roles, user groups and policies for performance and data protection. It provides the customer with a complete view and control of its mobile devices. SmartWorks is a customised software and hardware solution for large-scale mobile workforces. SmartWorks provides analysis of mobile technology requirements and creates solutions that work together. SmartDevice is Techstep's mobile device lifecycle solution. The lifecycle handling software enables clients to order, purchase and manage the device throughout the lifecycle. It provides a complete ecosystem, with the recycling or repurposing of obsolete devices included as standard, consequently reducing our customers' carbon footprint.

After the close of the quarter, Techstep divested its non-core business units, Voice & Contact Center in Norway, and Sweden for a consideration of NOK 65.7 million. This enables Techstep to increase its focus on core product offering as well as transition to a recurring revenue business model. See note 8 and 9 for more information, as well as relevant line items in the financial review.

The mobility market

Techstep has acted as a market consolidator in Norway and the Nordics over the past five years and always evaluates potential M&A opportunities to further strengthen and expand its managed mobility service offering. The most recent acquisition of Famoc increased the company's presence in Europe.

¹Refer to alternative performance measures

Financial review

The interim financial information has not been subject to audit.

Famoc is fully consolidated in the consolidated financial statements with effect from the third quarter 2021.

Profit and loss fourth quarter 2021

Techstep generated total revenue of NOK 384.1 million in the fourth quarter of 2021, down from NOK 399.3 million in the corresponding quarter last year. The fourth quarter 2020 was positively impacted by Hardware-as-a-Service periodization effect of NOK 15.6 million, relating to previous quarters in the same year.

Techstep's Own Software accounted for NOK 22.5 million (NOK 14.5 million), whereas Hardware-as-a-Service revenue accounted for NOK 37.3 million (NOK 54.2 million). Advisory & Services amounted to NOK 77.9 million (NOK 80.7) and related commissions were NOK 4.9 million in the fourth quarter (NOK 8.0 million). Hardware revenue (excluding Hardware-as-a-Service) was NOK 241.1 million (NOK 241.1 million) in the quarter.

Gross profit decreased by 17.2% year-overyear to NOK 122.9 million. Gross margin for the quarter thus decreased to 32.0%, down from 37.2% in the corresponding quarter of 2020. The decrease in gross margin mainly relates to lower margin on Hardware due to the realization of the backlog on hardware devices from previous periods caused by supplier shortage.

Salaries and personnel costs increased by 1.1% year-over-year to NOK 72.6 million. The number of total employees and the number of employees in R&D has increased over the year due to acquisitions. NOK 4.3 million of personnel cost from R&D is capitalised as development cost (NOK 3.3 million). Other operational costs were NOK 25.0 million (NOK 26.0 million). The quarter had a reduction in reorganization projects offset by increase in marketing and IT spending.

EBITDA amounted to NOK 23.4 million in the fourth quarter of 2021 and includes other operating one-off costs related to M&A and restructuring costs of NOK 1.9 million. EBITDA in the corresponding quarter last year was NOK 54.6 million.

Financial position

As at 31 December 2021, total assets were NOK 1,319.6 million, compared with NOK 1,316.8 million as at 30 September 2021.

Intangible assets accounted for NOK 784.3 million. They included a deferred tax asset of NOK 4.7 million, goodwill of NOK 595.6 million and customer relations and technology of NOK 184.0 million.

Total tangible assets were NOK 179.4 million as at 31 December 2021including NOK 148.8 million in Hardware-as-a-Service to customers and NOK 30.5 million in right-of-use assets such as premises and IT licenses.

Total inventories and receivables were NOK 279.3 million as at 31 December 2021. The increase in accounts receivable of NOK 37 million from the preceding quarter is mainly related to delivery shortage of iPhone 13, solved at the end of the quarter.

Total equity at the end of the fourth quarter was NOK 559.6 million (NOK 590.0 million), corresponding to an equity ratio of 42% (45%).

Non-current interest-bearing debt of NOK 97.4 million (NOK 125.8 million) includes acquisition loans of NOK 60.7 million related to the Optidev and Famoc acquisitions and a seller's credit of NOK 32.0 million. Other non-current debt of NOK 43.6 million mostly relates to leasing commitments of NOK 22.4 million and a buyback obligation for Hardware-as-a-Service of NOK 20.3 million.

Current interest-bearing liabilities amounted to NOK 74.6 million. They include net bank overdraft accounts of NOK 21.9 million, which was reduced in accordance with the proceeds received from the sale of the voice and contact center business. In addition, further reduction is due to payments of short-term seller's credit of NOK 27.6 million and the short-term acquisition loans of NOK 20.2 million related to the Optidev and Famoc acquisitions.

Other current liabilities of NOK 295.0 million as at 31 December 2021 mainly include payables to employees of NOK 37.4 million and deferred revenue of NOK 200.9 million. Deferred revenue increased by NOK 62.8 million compared to the third quarter 2021, of which NOK 40.2 million related to the proceeds received in advance from the sale of the voice and contact center. This will be accounted for in the consolidated income statement in the first quarter 2022. Moreover, other current liabilities include leasing commitments of NOK 10.7 million and a buy-back obligation for Hardwareas-a-Service of NOK 9.8 million.

Net interest-bearing debt was NOK 121.6 million at the end of the fourth quarter 2021, compared to NOK 182.2 million at the end of the preceding quarter. The decrease is mainly related to the proceeds from the sale of the voice and contact center business, as described above, reducing bank overdraft accounts.

Cash flow fourth quarter 2021

Net cash inflow from operating activities was NOK 9.6 million in the fourth quarter of 2021 and includes a negative effect of NOK 15.7 million from an increase in working capital.

Net cash flow from investment activities was NOK 30.9 million. This is largely due to proceeds from the sale of the voice and contact center business of NOK 65.7 million, largely offset by capital expenditures for equipment

related to Hardware-as-a-Service of NOK 14.2 million and Own software and IT of NOK 23.9 million.

Net cash outflow from financing activities was NOK 49.0 million in the fourth quarter 2021. This is largely due to down payment on acquisition loans and a reduction in the bank overdraft account.

Cash and cash equivalents decreased by NOK 8.5 million from NOK 59.2 million in the previous quarter to NOK 50.4 million at the end of the quarter.

Outlook

Techstep has positioned itself to be the leading European mobile technology enabler for customers that want to work smarter and more sustainable. The company's vision is to make the world of work smarter and more sustainable.

Through its software-led growth strategy, Techstep is serving more than 2,000 customers across industries in both the private and public sector. Going forward, Techstep will continue to transform into a software and value adding services company targeting strong growth and geographic expansion in the Nordics and in Europe.

As part of its transformation journey, Techstep invests in Own Software and IP and pursues M&A opportunities to further strengthen and expand its Managed Mobility Services (MMS) offering and market position.

In parallel, Techstep is transforming the business model from a transactional to recurring revenue model by redesigning and streamlining its product offering. The company will offer a software-led standardised and scalable product portfolio to attract, develop, and retain customers. The new product offering consists of SmartControl, SmartWorks and SmartDevice, and will launch late in the first quarter of 2022. The new offering is designed to strengthen the value proposition to customers and drive recurring revenues.

Techstep has stated medium term goals. The ambition is a gross profit growth of 20-25% and a gross profit to EBITDA conversion of 20-25%. In 2021, Techstep entered into 33 MMS contracts with a gross profit growth of 21% and a gross profit to EBITDA conversion of 15%. Annual development capex is expected to be

NOK 35-40 million, with acquired software bringing it further up. The transformation to a recurring revenue model is expected to support sales growth and profitability. Techstep is targeting to manage 1 million devices by 2025, with a gross profit to EBITDA conversion above 30%.

According to the Global Managed Mobility Service Market (2022-2027) report from Mordor Intelligence the growth of the European managed mobility service market was 21% in 2021. The global market is expected to grow annually 24% from 2022 to 2027.

Important focus areas going forward are data privacy, security and sustainability with careful life-cycle handling of devices.

We are also glad to see that the expectations for cloud migration from On-prem is increasing as well. This fits perfectly with our product offering of SmartControl, SmartWorks and SmartDevice.

Growth will come from converting existing customers to MMS, onboarding new customers, M&A to acquire new software, IP and market positions and from geographical expansion. To unleash growth, Techstep will increase focus on the customer, the products it brings to market, and the technology and software that power its solutions. Techstep is confident that its MMS offering has a strong value proposition and increasing relevance as it helps enterprises reduce costs, increase productivity, transform employee capabilities, and enhance their engagement, ultimately driving business value and revenue growth, while delivering on ESG goals.

Consolidated income statement

(Amounts in NOK 1 000)	Note	Q4 2021	Q4 2020	FY 2021	FY 2020

Revenue	2, 3	383 704	398 364	1 303 009	1 138 943
Other revenue		413	919	1 898	3 923
Total revenues		384 117	399 284	1 304 907	1 142 866

Cost of goods sold		(261 212)	(250 779)	(845 427)	(764 579)
Salaries and personnel costs		(72 634)	(71 845)	(281 620)	(208 243)
Other operational costs		(24 971)	(26 062)	(108 630)	(74 405)
Depreciation	5	(28 885)	(40 567)	(108 066)	(87 332)
Amortisation		(18 369)	(10 469)	(54 474)	(27 892)
Other income		11	5 048	22	17 843
Other expenses		(1 874)	(1 031)	(17 209)	(9 028)
Operating profit (loss)		(23 817)	3 580	(110 496)	(10 770)

Financial income		5 060	459	12 231	5 760
Financial expense		(7 364)	(2 443)	(20 537)	(11 822)
Profit before taxes		(26 121)	1 596	(118 802)	(16 832)
Income taxes		323	(12 480)	20 237	(6 725)
Net profit (loss) for the period		(25 799)	(10 884)	(98 565)	(23 557)

Net income attributable to
Non-controlling interests		142	1 075	577	1 188
Shareholders of Techstep ASA		(25 941)	(11 960)	(99 142)	(24 746)

Earnings per share in NOK:
Basic		(0.14)	(0.07)	(0.53)	(0.15)
Diluted		(0.13)	(0.07)	(0.52)	(0.13)

Consolidated statement of comprehensive income

(Amounts in NOK 1 000)	Q4 2021	Q4 2020	FY 2021	FY 2020
Net profit (loss) for the period	(25 799)	(10 884)	(98 565)	(23 557)

Items that may be reclassified to profit and loss
Exchange differences on translating foreign
operations	(2 079)	3 844	(19 105)	22 346
Income tax related to these items	(497)	2 623	(1 304)	(730)
Total comprehensive income	(28 375)	(4 417)	(118 974)	(1 941)

Total comprehensive income attributable to
Non-controlling interests	142	1 075	577	1,188
Shareholders of Techstep ASA	(28 517)	(5 492)	(119 551)	(3 130)

Consolidated statement of financial position

(Amounts in NOK 1 000)
ASSETS	Note	FY 2021	FY 2020
Non-current assets
Deferred tax asset		4 696	-
Goodwill	8	595 571	571 372
Customer relations and technology	8	184 001	161 892
Total intangible assets		784 268	733 263
Right-of-use assets	5	30 546	40 233
Property, plant and equipment	5	148 817	133 384
Total tangible assets		179 363	173 617
Shares and investments		590	44
Other non-current assets		1 224	169
Total financial assets		1 814	213
Total non-current assets		965 445	907 093
Inventories		17 477	28 158
Accounts receivable		230 229	203 083
Other receivables		31 602	33 594
Total inventories and receivables		279 308	264 836
Cash and cash equivalents	7	50 350	27 203
Assets classified as held for sale	8	24 482
Total current assets		354 139	292 039
Total assets		1 319 585	1 199 131

EQUITY AND LIABILITIES	Note	FY 2021	FY 2020
Share capital	4	209 630	183 295
Other equity		348 549	379 272
Total equity attributable to the owners of Techstep ASA	4	558 179	562 568
Non-controlling interests		1 463	884
Total equity		559 642	563 451
Deferred tax		17 181	27 659
Non-current interest-bearing debt		97 357	108 539
Other non-current debt		43 601	54 488
Total non-current debt		158 139	190 686
Current interest-bearing liabilities		74 593	85 502
Accounts payable		193 833	154 442
Tax payable		(1 169)	(750)
Public taxes, provisions		39 577	39 756
Other current liabilities	5, 8	294 970	166 044
Total current debt		601 804	444 994
Total liabilities		759 943	635 680
Total equity and liabilities		1 319 585	1 199 131

Consolidated statement of changes in equity

(Amounts in NOK 1 000)		Other				Min.	Total
	Share capital	paid-in capital	Other equity	Reval. reserve	SUM	interes t	equity capital

Equity as at 1 January 2020	162 795	504 273	(205 402)	(5 394)	456 273	(304)	455 970
Profit for the period	-	-	(24 746)		(24 746)	1 188	(23 557)
Other comprehensive income	-	-		21 616	21 616	-	21 616
Total comprehensive income for
the period	-	-	(24 746)	21 616	(3 130)	1 188	(1 941)
Transactions with owners in their capacity as owners:
Issue of ordinary shares as consideration for a business
combination, net of transaction costs
and tax	20 500	87 088	-	-	107 588	-	107 588
Share-based payments Equity as at 31 December 2020	- 183 295	- 591 361	1 834 (228 311)	- 16 222	1 834 562 568	- 884	1 834 563 451

Equity as at 1 January 2021	183 295	591 361	(228 311)	16 222	562 568	884	563 451

Profit for the period	-	-	(99 142)		(99 142)	577	(98 565)
Other comprehensive income	-	-		(22 938)	(22 938)	-	(22 938)
Total comprehensive income for
the period	-	-	(99 142)	(22 938)	(122 080)	577	(121 503)
Transactions with owners in their capacity as owners: Issue of ordinary shares as consideration for a business
combination, net of transaction costs
and tax	3 679	12 141			15 821		15 821
Contributions of equity net of
transaction costs	22 655	75 264			97 920		97 920
Share-based payments	-	-	3 946		3 946	-	3 946
Equity as at 31 December 2021	209 630	678 773	(323 508)	(6 716)	558 179	1 463	559 642

Consolidated statement of cash flow

(Amounts in NOK 1 000)	Note	Q4 2021	Q4 2020	FY 2021	FY 2020

Profit before tax		(26 121)	1 596	(118 802)	(16 832)
Depreciation equipment and other fixed assets	5	25 505	35 139	94 616	72 590
Depreciation right-of-use assets	5	3 380	5 429	13 451	14 743
Amortisation		18 369	10 469	54 474	27 892
Share-based payments		473	675	3 946	1 834
Gain on sale of business reclassified to investment
activities		-	-	-	(8 000)
Gain from sale of PPE reclassified to investment
activities Remeasurement of contingent liability		-	-	-	(4 795)
Net exchange differences		-	4 859	-	4 895
Taxes paid		3 480	1 056	4 649	923
Changes in core net operating working capital		156	(2 664)	(1 474)	(5 514)
Changes in other net operating working capital		(2 381)	(21 747)	19 782	(30 107)
		(13 271)	14 038	54 559	13 528
Net cash flow from operational activities		9 589	48 849	125 199	71 120
Payment for acquisition of subsidiaries net of cash
acquired	8	(27)	(61 414)	(79 005)	(61 414)
Payment for equipment and other fixed assets	5	(14 168)	(35 787)	(146 454)	(108 650)
Payment for intangible assets		(23 914)	(7 812)	(48 882)	(21 386)
Proceeds from sale of property, plant and
equipment		3 379	-	27 393	13 089
Proceeds from sale of business	8	65 678	-	65 678	8 000
Net cash used on investment activities		30 948	(105 014)	(181 270)	(170 361)

Proceeds from issuance of shares		-	-	101 853	-
Repayment of borrowings		(45 297)	(5 366)	(59 423)	109 764
Proceeds from borrowings		-	43 099	55 192	(12 686)
Lease repayments		(3 726)	(7 552)	(16 240)	(17 459)
Net cash flow from financing activities		(49 023)	(30 181)	81 382	79 619
Net change in cash and cash equivalents1)		(8 485)	(25 984)	25 310	(19 622)

Cash and cash equivalents at beginning of
period		59 163	54 920	27 203	44 588
Effects of exchange rate changes on cash and cash
equivalents		(329)	(1 733)	(2 164)	2 236
Cash and cash equivalents at end of period	7	50 350	27 203	50 350	27 203

Cash flow has been restated for FY2020 and Q4 2020. Bank overdraft and cash is no longer presented net in the consolidated statement of cash flow.

Notes to the consolidated financial statements

Techstep (the Group) consists of Techstep ASA (the Company) and its subsidiaries. Techstep ASA is a limited liability company, incorporated in Norway. The consolidated interim financial statements consist of the Group and the Group's interests in a joint arrangement. As a result of rounding differences, numbers or percentages may not add up to the total.

The figures presented in the quarterly report are in NOK thousand unless otherwise stated.

Note 1. Accounting principles

The interim consolidated financial statements are prepared under International Financial Reporting Standards (IFRS), for the periods presented. The interim financial report is presented in accordance with IAS 34 Interim Financial Reporting. The interim consolidated financial statements do not include all the information and disclosures required in the Annual Financial Statements and should be read in conjunction with the Group's Annual Financial Statements for 2020. The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group's Annual Financial Statements for the year ended 31 December 2020. The report has not been audited.

Revenue Recognition

The term Hardware-as-a-Service has replaced the term leasing in the group's reporting. The new term represents the same revenue streams as leasing. Please refer to the Techstep Group annual report 2020, note 1.6 lessor accounting.

Note 2. Business segments

Techstep has four business segments, which are represented by the geographic locations where the Group's entities are incorporated, the Optidev group acquired in 2020, and Famoc purchased in 2021. The entities are controlled and owned by the Techstep Group. Other companies are included in the segment Headquarters and other.

Eliminations comprise intersegment sales. Transactions between operating segments are conducted on normal commercial terms.

1) Norway

Techstep Norway AS: The offerings of the company are mobile hardware, servicing, support and mobility consultancy services. The company is located in Oslo and Sandefjord.
Mytos AS: A Norwegian-based software-as-a-services company with mainly recurring revenue. Mytos offers a full range of telecom expense management (TEM) modules, all with proprietary software and highly user-friendly implementation and operation. The company is located in Oslo.
Techstep Denmark ApS: Established to invoice Danish customers. The company is fully supported from Norway and does not have any employees.
Techstep Finance AS: Provides financing and remarketing services.

2) Sweden:

Techstep Sweden AB: The company offers mobile hardware, industry leading cloud-based (UCaaS) PBX solutions, Mobility consultancy services and Enterprise Mobility Management (EMM) services, including Mobile Security, system design, implementation, mobile device management. The company is located in Karlstad, Gothenburg and Stockholm.
Techstep Finance AB: Provides financing and remarketing services.

3) Optidev:

Optidev AB, Optidev AS and Optidev ApS: The companies develop and provide enterprise mobility software and solutions, predominantly to customers in the transportation, logistics and public safety sectors in Sweden, Norway and Denmark.
eConnectivity CC AB: the company is a specialised developer and provider of enterprise strategic services related to mobility and digitalisation.

4) Famoc

Famoc S.A.: A Polish software-as-a-services company with mainly recurring revenue. Famoc offers a portfolio of solutions for the mobile device lifecycle management market. The company is located in Gdansk.
Famoc Software Ltd: An Ireland based company acting as a reseller of Famoc S.A. software to customers outside Poland.
Santa Maria Private Ventures sp. z.o.o.: A holding company owning shares in Famoc S.A. and Famoc Software sp. z.o.o.

5) Headquarters and other:

• Techstep ASA, Techstep Nordic AS and Techstep Holding AB.

					HQ and	Elim
Q4 2021	Norway	Sweden	Optidev	Famoc	other	inations	Total
Operating revenues
from external
customers	224 359	93 669	57 513	8 553	24	-	384 117
Operating revenues
from other segments	2 171	1 004	1 513	-	10 016	(14 704)	-
Operating revenues	226 530	94 673	59 026	8 553	10 039	(14 704)	384 117
Cost of goods sold	(162 747)	(70 121)	(27 624)	(3 081)	-	2 360	(261 212)
Salaries and personnel
costs	(26 896)	(13 057)	(18 328)	(5 186)	(9 751)	583	(72 634)
Other operational
costs	(12 852)	(5 453)	(6 919)	3 092	(12 262)	9 424	(24 971)
Share of profit (loss) of
joint venture	-	-	-	-	-	-	-
Depreciation	(17 393)	(5 067)	(5 113)	(200)	(1 112)	-	(28 885)
Amortisation	(3 515)	(1 880)	(4 941)	(5 478)	(2 555)	-	(18 369)
Impairment	-	-	-	-	-	-	-
Other income	-	-	-	11	-	-	11
Other expenses	-	-	-	-	(1 874)	-	(1 874)
Operating profit
(loss)	3 127	(906)	(3 898)	(2 289)	(17 514)	(2 336)	(23 817)

Employees 31
December 2021	129	59	99	48	6	-	341

					HQ and	Elim
Q4 2020	Norway	Sweden	Optidev	Famoc	other	inations	Total
Operating revenues
from external
customers	235 197	93 148	70 692	-	247	-	399 284
Operating revenues
from other segments	3 251	931	112	-	7 382	(11 677)	-
Operating revenues	238 448	94 079	70 805	-	7 628	(11 677)	399 284
Cost of goods sold	(152 501)	(65 106)	(34 788)	-	283	1 333	(250 779)
Salaries and personnel
costs	(33 909)	(15 138)	(15 716)	-	(8 182)	1 100	(71 845)
Other operational
costs	(13 005)	(6 856)	(4 324)	-	12 738	(14 615)	(26 062)
Share of profit (loss) of
joint venture	-	-	-	-	-	-	-
Depreciation	(26 245)	(6 072)	(5 990)	-	(2 260)	-	(40 567)
Amortisation	2 128	(1 991)	(4 161)	-	(6 445)	-	(10 469)
Impairment	-	-	-	-	-	-	-
Other income	150	40	-	-	4 859	-	5 048
Other expenses	-	-	-	-	(1 031)	-	(1 031)
Operating profit
(loss)	15 066	(1 043)	5 826	-	7 589	(23 859)	3 580

Employees 31
December 2020	124	56	84	-	19		283

					HQ and	Elim
FY 2021	Norway	Sweden	Optidev	Famoc	other	inations	Total
Operating revenues
from external
customers	792 735	297 201	199 755	14 607	608	-	1 304 907
Operating revenues
from other segments	8 098	6 173	2 104	-	37 407	(53 782)	-
Operating revenues	800 834	303 373	201 859	14 607	38 015	(53 782)	1 304 907
Cost of goods sold	(559 185)	(214 132)	(80 253)	(4 177)	(267)	12 587	(845 427)
Salaries and personnel
costs	(115 325)	(54 598)	(66 825)	(8 540)	(38 573)	2 241	(281 620)
Other operational
costs	(46 783)	(21 396)	(24 167)	3 107	(54 764)	35 373	(108 630)
Share of profit (loss) of
joint venture	-	-	-	-	-	-	-
Depreciation	(63 150)	(18 888)	(20 806)	(403)	(4 818)	-	(108 066)
Amortisation	(10 927)	(7 682)	(20 027)	(6 883)	(8 955)	-	(54 474)
Impairment	-	-	-	-	-	-	-
Other income	-	-	-	22	-	-	22
Other expenses	-	-	-	-	(17 209)	-	(17 209)
Operating profit
(loss)	5 464	(13 323)	(10 219)	(2 267)	(86 572)	(3 580)	(110 496)

Employees 31
December 2021	129	59	99	48	6	-	341

					HQ and	Elim
FY 2020	Norway	Sweden	Optidev	Famoc	other	inations	Total
Operating revenues
from external
customers	760 611	310 577	70 692	-	986	-	1 142 866
Operating revenues
from other segments	6 397	4 202	112	-	32 204	(42 916)	-
Operating revenues	767 007	314 779	70 805	-	33 190	(42 916)	1 142 886
Cost of goods sold	(511 798)	(224 774)	(34 788)	-	-	6 782	(764 579)
Salaries and personnel
costs	(112 736)	(49 604)	(15 716)	-	(31 652)	1 465	(208 243)
Other operational
costs	(53 544)	(21 928)	(4 324)	-	(25 580)	30 971	(74 405)
Share of profit (loss) of
joint venture	-	-	-	-	-	-	-
Depreciation	(61 479)	(11 422)	(5 990)	-	(8 442)	-	(87 332)
Amortisation	(7 816)	(7 770)	(4 161)	-	(8 145)	-	(27 892)
Impairment	-	-	-	-	-	-	-
Other income	8 150	4 835	-	-	4 859	-	17 843
Other expenses	(105)	-	-	-	(8 923)	-	(9 028)
Operating profit
(loss)	27 679	4 116	5 826	-	(44 694)	(3 698)	(10 770)

Employees 31
December 2020	124	56	84	-	19		283

Note 3. Disaggregation of revenues

In the following tables, Total revenue is disaggregated by major revenue streams divided into the reportable segments as shown in Note 2:

					HQ and	Elim
Q4 2021	Norway	Sweden	Optidev	Famoc	other	inations	Group
Total revenues	226 530	94 673	59 026	8 553	10 039	(14 704)	384 117

Hardware
Hardware revenues	156 714	54 381	17 183	365	-	(450)	228 194
Hardware-as-a-Service	24 237	8 198	4 891	-	-	(9)	37 316
Kickback	10 040	2 519	354	-	-	-	12 913
Total	190 991	65 098	22 428	365	-	(459)	278 423


	20 824	29 321	29 681	882	-	(3 846)	77 892
	9 758	-	6 584	7 305	-	(166)	22 452
	4 568	369	-	-	-	-	4 936
	35 150	29 690	36 265	8 188	-	(4 012)	105 281


	389	(115)	333	-	10 039	(10 234)	413
	389	(115)	333	-	10 039	(10 234)	413
Solutions Advisory & Services Own Software Commission Total Other revenues Other Total

					HQ and	Elim
Q4 2020	Norway	Sweden	Optidev	Famoc	other	inations	Group
Total revenues	238 448	94 079	70 805	-	7 628	(11 677)	399 284

Hardware
Hardware revenues	146 521	61 298	24 662	-	-	(626)	231 855
Hardware-as-a-Service	38 193	5 128	10 883	-	-	-	54 203
Kickback	9 062	188	-	-	-	-	9 250
Total	193 775	66 615	35 544	-	-	(626)	295 309

Solutions
Advisory & Services	30 158	24 256	29 867	-	-	(3 557)	80 723
Own Software	9 518	-	4 956	-	-	-	14 473
Commission	4 655	3 317	-	-	-	-	7 972
Total	44 330	27 573	34 823	-	-	(3 557)	103 168

Other revenues
Other	343	(108)	438	-	7 628	(7 494)	807
Total	343	(108)	438	-	7 628	(7 494)	807

					HQ and	Elim
FY 2021	Norway	Sweden	Optidev	Famoc	other	inations	Group
Total revenues	800 834	303 373	201 859	14 607	38 015	(53 782)	1 304 907

Hardware
Hardware revenues	538 497	181 120	55 775	365	-	(2 910)	772 847
Hardware-as-a-Service	86 081	24 260	23 895	-	-	(9)	134 227
Kickback	37 044	10 579	1 539	-	-	-	49 163
Total	661 622	215 960	81 210	365	-	(2 919)	956 237

Solutions
Advisory & Services	81 138	85 141	97 274	1 458	-	(12 023)	252 987
Own Software	38 961	-	22 041	12 785	-	(166)	73 621
Commission	17 791	2 372	-	-	-	-	20 164
Total	137 890	87 513	119 315	14 242	-	(12 189)	346 771

Other revenues
Other	1 321	(99)	1 335	-	38 015	(38 674)	1 898
Total	1 321	(99)	1 335	-	38 015	(38 674)	1 898

					HQ and	Elim
FY 2020	Norway	Sweden	Optidev	Famoc	other	inations	Group
Total revenues	767 007	314 779	70 805	-	33 190	(42 916)	1 142 866

Hardware
Hardware revenues	492 315	210 373	24 662	-	-	(3 399)	723 950
Hardware-as-a-Service	79 494	14 929	10 883	-	-	-	105 305
Kickback	31 040	3 138	-	-	-	-	34 179
Total	602 849	228 440	35 544	-	-	(3 399)	863 434

Solutions
Advisory & Services	102 351	75 905	29 867	-	-	(7 199)	200 924
Own Software	38 420	-	4 956	-	-	-	43 376
Commission	21 031	10 291	-	-	-	-	31 322
Total	161 802	86 196	34 823	-	-	(7 199)	275 622

Other revenues
Other	2 356	143	438		33 190	(32 317)	3 811
Total	2 356	143	438	-	33 190	(32 317)	3 811

Note 4. Share capital and shareholders

The company's share capital as at 31 December 2021 was NOK 209,629,830 consisting of 209,629,830 ordinary shares with a par value of NOK 1.00.

Each share gives the right to one vote at the company's annual general meeting. At the time of this report, Techstep holds 1,914 treasury shares.

Techstep's 20 largest shareholders at 31 December 2021 were as follows:

Shareholder	# of shares	Ownership %
DATUM AS1	36 615 646	17.5%
KARBON INVEST AS2	21 804 349	10.4%
MIDDELBORG INVEST AS	20 414 507	9.7%
SWEDBANK AB	18 965 827	9.0%
DNB NOR BANK ASA	9 287 800	4.4%
VERDIPAPIRFONDET DNB SMB	7 519 773	3.6%
CIPRIANO AS	4 538 498	2.2%
ALUNDO INVEST AS	4 000 000	1.9%
SAXO BANK A/S	3 047 315	1.5%
TORSTEIN TVENGE	3 000 000	1.4%
TIGERSTADEN AS	3 000 000	1.4%
BRIDGE CAPITAL AS	2 513 317	1.2%
NORDHOLMEN AS	2 075 608	1.0%
ADRIAN AS	2 038 851	1.0%
GIMLE INVEST AS	2 020 077	1.0%
UNIFIED AS	1 969 264	0.9%
PIKA HOLDING AS	1 956 512	0.9%
NORDIALOG ENSJØ AS	1 946 253	0.9%
SABINUM AS	1 802 813	0.9%
ZONO HOLDING AS3	1 801 938	0.9%
Total number owned by top 20	150 318 348	71.7%
Total number of shares	209 629 830	100.0%

1) Datum AS is controlled by deputy board member Jan Haudemann-Andersen. Board member Harald Arnet is the CEO and board member in Datum AS.

2) Karbon Invest AS is owned by chairman of the board Jens Rugseth

3) Zono Holding AS is owned by Duo Jag AS 0.93%

Idekapital AS, which is controlled by board member Anders Brandt, owns 1,802,8013 shares in Techstep ASA.

Duo Jag AS, which is partly owned by board member Ingrid Leisner, owns 601,562 shares in Techstep ASA.

Share option grant

At the Annual General meeting 22 June 2020, 4,069,883 share options (2.5% of existing shares) were granted under the 2020 programme. The share options will become exercisable (vest) on 22 June 2021 and must be exercised by 22 June 2024. The exercise price is NOK 3.00.

At the Annual General meeting 22 April 2021, 4,593,307 share options (2.5% of existing shares) were granted under the 2021 programme. The share options vest 1/3 each year from 22 April 2022 and are fully vested on 22 April 2024. The options must be exercised by 22 April 2026. The exercise price is NOK 5.80.

The exercise price will be adjusted for any dividends paid or accrued before exercise. Each option holder's aggregated gross profit from exercising the options shall be limited to the amount equal to 3 years' gross base salary at the time of exercising the options. The exercise of share options can be settled in cash, and/or with new or existing treasury shares.

CEO Børge Astrup was awarded 4,500,000 share options on an extraordinary general meeting held 22 September 2021. The options vest in three tranches with 1/3 per tranche, on 1 September 2024, 2025 and 2026. The exercise period is two years from the applicable Vesting Date. The strike price is NOK 4.75, NOK 5.75 and NOK 6.75 for the respective tranches. If the average, weighted Techstep share price for seven calendar days exceeds NOK 30 per share, then the Company may require that all vested options are exercised by Børge Astrup.

The Board intends to propose the adoption of a similar option program in 2022.

As at 31 December 2021, the total number of outstanding share options was 8,746,070 (4.2%).

Overview of share options held by members of the management group as at 31 December 2021:

Name	Position	Shares	Share options
Børge Astrup	CEO	178 396	4 500 000
Marius Drefvelin	CFO	63 364	813 977
Mads Vårdal	Chief Product Officer	5 019	1 156 726
Erik Haugen	Chief Transformation Officer	4 672	1 156 726
Fredrik Logenius	Chief Operating Officer	9 469 399	229 660
Bartosz Leoszewski	Chief Technology Officer	312 628	-
Gunnar Aasen	Chief Revenue Officer	-	-
Ellen Skaarnæs	Chief People Officer	41 411	-

Note 5. Property, plant and equipment

	Land and	Right-of-use		Other fixed
	buildings	assets	Equipment1)	assets	Total

Accumulated cost as at 1 January 2021	-	69 045	279 256	35 052	383 353
Additions Additions arising from business	-	10 594	155 232	1 147	166 972
combinations	-	-	-	771	771
Disposals	-	(14 375)	(133 368)	(3 692)	(151 435)
Translation differences	-	(933)	(8 225)	(1 058)	(10 217)
Reclassified to asset classified as held for
sale	-	-	-	-	-
Accumulated cost 31 December 2021	-	64 331	292 894	32 220	389 444

Accumulated cost as at 1 January 2020	-	47 552	105 865	19 966	173 383
Additions	-	9 287	105 340	3 836	118 462
Additions arising from business
combinations	-	11 877	78 768	10 725	101 369
Disposals	-	-	(9 677)	(2 619)	(12 296)
Translation differences	-	330	1 679	425	2 434
Reclassified to asset classified as held for
sale	-	-	-	-	-
Accumulated cost 31 December 2020	-	69 045	281 974	32 334	383 353
Accumulated depreciation as at 1 January	-
2021	-	(28 813)	(153 906)	(27 018)	(209 737)
Additions arising from business
combinations	-	-	-	(743)	(743)
Current year depreciation	-	(12 976)	(92 531)	(2 559)	(108 066)
Disposals	-	7 352	90 352	3 665	101 369
Translation differences	-	651	5 958	372	7 096
Reclassified to asset classified as held for
sale	-	-	-	-	-
Accumulated depreciation 31	-	(33 785)	(150 015)	(26 282)	(210 081)
December 2021
Accumulated depreciation as at 1 January
2020	-	(10 962)	(33 871)	(16 703)	(61 536)
Additions arising from business
combinations	-	(3 639)	(47 936)	(6 969)	(58 544)
Current year depreciation	-	(14 361)	(71 560)	(1 411)	(87 332)
Disposals	-	-	-	(1 971)	(1 971)
Translation differences	-	149	(538)	35	(353)
Reclassified to asset classified as held for
sale	-	-	-	-	-
Accumulated depreciation 31 December 2020	-	(28 813)	(153 906)	(27 018)	(209 737)

Book value of assets 31 December 2020	-	40 233	128 068	5 316	173 617
Book value of assets 31 December 2021	-	30 546	142 766	5 942	179 363

1) Equipment comprises mobile phones, tablets and other equipment where the Group is the lessor.

Note 6. Impairment

The group's assets have been assessed for impairment, and it is management's judgement that no impairment charge is necessary.

Note 7. Cash and cash equivalents

Current assets	FY 2021	FY 2020
Cash at bank and in hand, not included in cash pool	50 350	27 203
of which is restricted	6 196	6 356

The Group has a credit facility of NOK 80 million related to the cash pool.

Note 8. Divestment of Voice and contact center

Techstep divested its Voice & Contact Center business units ("VCC") in Norway and Sweden for a total combined consideration of NOK 65.7 million, settled in cash. The proceeds were received at the end of 2021, while the transaction closed early Q1 2022.

In the Q4 2021 financial accounts, the proceeds of NOK 65.7 million are accounted for as deferred revenue (NOK 40.2 million) and other short term debt (NOK 24.5 million) on the line item Other current liabilities in the statement of financial position. The amount was used to reduce the group's bank overdraft. The bank overdraft is included in the line item Current interest-bearing liabilities. In relation to the transition the group has identified assets and liabilities of the net amount NOK 24.5 million which is classified as held for sale in the statement of financial position.

In the Q1 2022 the group will recognise a gain from the divestment amounting to NOK 40.2 million in the consolidated income statement. The remaining NOK 24.5 million will be recognised towards the assets held for sale.

Note 9. Subsequent events

On 3 January 2022, Techstep completed the transaction to divest its non-core business units Voice & Contact Center business units ("VCC") in Norway and Sweden for a total combined consideration of NOK 65.7 million, settled in cash. The amount increased due to currency fluctuations.

There were no other subsequent events after the close of the fourth quarter.

Alternative performance measures

Techstep Group's financial information is prepared in accordance with International Financial Reporting Standards (IFRS). In addition, it is management's intention to provide alternative performance measures that are regularly reviewed by management to enhance the understanding of Techstep's performance, but not instead of the financial statements prepared in accordance with IFRS. The alternative performance measures presented may be determined or calculated differently by other companies. The principles for measuring the alternative performance measures are in accordance with the principles used both for segment reporting in Note 2 and internal reporting to Group Executive Management (chief operating decision makers) and are consistent with financial information used for assessing performance and allocating resources.

Gross profit

Gross profit is defined as Total revenue less Cost of goods sold.

Gross margin

Gross margin is defined as Total revenue less Cost of goods sold divided by Total revenue.

EBITDA

Earnings before interest, tax, depreciation, amortisation and impairment (EBITDA) is a key financial parameter for Techstep. This measure is useful to users of Techstep's financial information in evaluating operating profitability on a more variable cost basis as it excludes depreciation and amortisation expense related primarily to leases, capital expenditures and acquisitions that occurred in the past. The EBITDA margin presented is defined as EBITDA divided by total revenues.

Adjusted EBITDA

Adjusted Earnings before interest, tax, depreciation, amortisation and impairment (EBITDA) is based on EBITDA but adjusted for transactions of a non-recurring nature. Such non-recurring transactions include, but are not limited to restructuring costs, gains or losses related to sale of subsidiaries, acquisition-related costs and other nonrecurring income and expenses.

EBITA

Earnings before interest, tax and amortisation (EBITA) is a key financial parameter for Techstep. This measure is useful to users of Techstep's financial information in evaluating operating profitability on a more variable cost basis as it excludes depreciation related primarily to leases and capital expenditures and acquisitions that occurred in the past. The EBITA margin presented is defined as EBITA divided by total revenue.

EBIT

Earnings before interest and tax (EBIT) is useful to users with regard to Techstep's financial information in evaluating operating profitability on the cost basis as well as the historic cost related to past business combinations and capex. The EBIT margin presented is defined as EBIT divided by total revenue.

Total net operating expenses

Total net operating expenses includes the line items Cost of goods sold, Salaries and personnel costs, Other operating costs, Share of profit (loss) in joint venture, Depreciation, Amortisation, Impairment and Other income.

Hardware revenue

Hardware revenue is defined as revenue from sales of tangible goods and related discounts from suppliers and partners.

Hardware share of revenue is the hardware revenue divided by total revenues.

Solutions revenue

Solutions revenue is defined as revenue from sales of licenses, support and other non-tangible items to customers. Also included are discounts from suppliers and partners. Solutions share of revenue is the solutions revenue divided by total revenue.

Net interest-bearing debt (NIBD)

Net interest-bearing debt is non-current interest-bearing debt plus current interest-bearing liabilities less cash and cash equivalents.

Equity ratio

Equity ratio is defined as Total equity divided by total equity and liabilities.

Capital Expenditure (Capex)

Capital expenditure is the same as payment for property, plant and equipment and intangible assets.

ARR on own software

ARR is calculated as the revenue the following 12 months from Own Software as at the balance sheet date. The ARR is calculated by multiplying the number of users of Own Software with the price per product and in turn annualized.

Recurring revenue

The recurring revenue portfolio includes Own Software, Advisory & Services and Hardware-as-a-Service on contracts of 24 months or more excluding mobile expenses management (MEM) white label (with three months' notice before year-end). Calculated as the recognised recurring revenue each quarter, annualized.

LTM

Last Twelve Months. Sum of each month for the historical period of the previous 12 months. Used for gross profit and EBITDA adjusted.

APM's in the income statement	Q4 2021	Q4 2020	FY 2021	FY 2020
Total revenue	384 117	399 284	1 304 907	1 142 866
Cost of goods sold	(261 212)	(250 779)	(845 427)	(764 579)
Gross profit	122 905	148 506	459 481	378 287
Gross margin	32%	37%	35%	33 %
Salaries and personnel costs	(72 634)	(71 845)	(281 620)	(208 243)
Other operational costs	(24 971)	(26 062)	(108 630)	(74 405)
Other income	11	5 048	22	17 843
Other expenses	(1 874)	(1 031)	(17 209)	(9 028)
EBITDA	23 437	54 615	52 043	104 455
Depreciation	(28 885)	(40 567)	(108 066)	(87 332)
Impairment	-	-	-	-
EBITA	(5 448)	14 049	(56 023)	17 122
Amortisation	(18 369)	(10 469)	(54 474)	(27 892)
EBIT	(23 817)	3 580	(110 497)	(10 771)

Adjusted EBITDA	Q4 2021	Q4 2020	FY 2021	FY 2020
EBITDA	23 437	54 615	52 043	104 455
Other income	(11)	(5 048)	(22)	(17 843)
Other expense	1 874	1 031	17 209	9 028
Adjusted EBITDA	25 300	50 599	69 231	95 640

Total net operating expenses	Q4 2021	Q4 2020	FY 2021	FY 2020
Cost of goods sold	(261 212)	(250 779)	(845 427)	(764 579)
Salaries and personnel costs	(72 634)	(71 845)	(281 620)	(208 243)
Other operational costs	(24 971)	(26 062)	(108 630)	(74 405)
Share of profit (loss) in joint ventures		-	-	-
Depreciation	(28 885)	(40 567)	(108 066)	(87 332)
Amortisation	(18 369)	(10 469)	(54 474)	(27 892)
Impairment	-	-	-	-
Other expenses	(1 874)	(1 031)	(17 209)	(9 028)
Total net operating expenses	(407 945)	(400 752)	(1 415 425)	(1 171 479)

Revenue splits	Q4 2021	Q4 2020	FY 2021	FY 2020
Revenue	384 117	399 284	1 304 907	1 142 866
Hardware revenue	278 836	166 709	571 129	867 244
Solutions revenue	105 281	46 023	172 453	275 622
Hardware share of revenue	73%	42%	44%	76 %
Solutions share of revenue	27%	12%	13%	24 %

NIBD	FY 2021	FY 2020
Cash and cash equivalents	50 350	27 203
Non-current interest-bearing borrowings	97 357	108 539
Current interest-bearing borrowings	74 593	85 502
NIBD	121 601	166 838

Equity ratio	FY 2021	FY 2020
Total equity	559 642	563 451
Total equity and liabilities	1 319 585	1 199 131
Equity ratio	42%	47 %

ARR	FY 2021	FY 2020
Number of own software users (1 000)	66	61
Average price own software	1 050	543
MMS-Related ARR	69 613	32 951
Number of MEM white label users (1 000)	183	188
Average price MEM white label	152	161
White-label ARR	27 860	30 378
Total ARR from own IP	97 473	63 329

TECHSTEP ASA

Brynsalléen 4 0667 Oslo, Norway +47 915 233 37