Techstep ASA — Investor Presentation 2017

Sep 13, 2017

Techstep presentation

September 2017

"Making work mobile"

Why Techstep

Techstep's vision is to be the leading enabler of the digital workplace in the Nordics, making work mobile. We have the strongest sales and distribution network and deliver the best quality of solutions within mobility, IT and communication

Techstep is positioning itself as a leading Nordic enabler of the digital workplace

Simplified company structure

Market

Platform and Solutions

End-user Base

Strategy Execution

Techstep's M&A strategy based on two dimensions – increase customer base and increase ARPU

Growth dimensions

We come from a customer intimacy background, and this is what we should nurture, but work to become more efficient and unique in our offering

Product leadership

Offering customers leading-edge products and services that consistently enhance the customer's use or application of the product,

Operational excellence

Providing customers with reliable products or services at competitive prices and delivered with minimal difficulty or inconvenience

Customer intimacy

Segmenting and targeting markets precisely and then tailoring offerings to match exactly the demands of customers

Techstep's strategy builds upon three key assumptions

• Increased demand for mobile solutions at work
• Managed mobile services 27% CAGR (2015-2019)

One stop shop

• Lower total cost of ownership (TCO) to customers
• Single point to contact lower customers' risk
• Our advantage is the entry point of mobile devices

"As a service"

• From CAPEX to OPEX business models
• Lower risk related to rapidly changing technologies

3

2

1

CustomerValue Proposition

Although majority of workforce is mobile in nature, mobility solutions mostly present in 'stationary' jobs

= high mobility = some mobility = little mobility

Industry sector	Mobility	$#$ people
Agriculture, forestry and fishing		58753
Mining and quarrying	娇娇	59 994
Manufacture	咏	215521
Electricity, water supply, sewerage, waste management	咏	29 639
Construction	盛	207 492
Wholesale and retail trade		349 128
Transportation and storage	娇	138614
Accommodation and food service activities	咏	86 117
Information and communication	ç	88 199
Financial and insurance activities	ç	46839
Real estate, professional, scientific and technical activities	ı٦ı	161247
Administrative and support service activities	모	120 678
Public adm., defense, soc. security	ç	163 153
Education	â.	209 533
Human health and social work activities	娇	532 683
Other service activities	ı En	99 002
Unspecified	ıAı	21112

Consumers accustomed to advanced mobile solutions; businesses to follow suit

Consumer solutions Business solutions

'Work is the place I go to use old technology'

Techstep delivers a complete stack of solutions that provides an improved total-cost-of-ownership (TCO) and lower risk to the customer

Digitization and enterprise mobility management is a key concern for companies, ~80% have already initiated some degree of solutions, however only 5% are fully succeeding

ByoA, bring your own app

Digitization and mobility is on everybody's mind

Organic growth

Customers are on a trajectory towards full mobility, however the pace will depend on the customers maturity

As a part of a vision towards a mobile workplace, DNB now offers mobile devices with mobility solutions to almost all their employees

Introduction and Purpose

Techstep serves ~30% of Telenor's B2B customers in Norway and delivers EMM solutions to 20% of all employees in the top 45 largest companies in Sweden

The Swedish B2B-phone market is 2-3 times larger than the Norwegian, and users are expected to grow

Execution on Strategy

Status Q2 2017

Company progress towards becoming a Nordic enabler of the digital workplace

2017
Focus: M&A, integration and product development		Focus: Product rollout and sales focus
Q1	Q2	Q3	Q4
✓  Acquisition of Mytos ✓  Acquisition of Infra Advice ✓  Acquisition of Apro ✓  Equity issue of NOKm 100	✓  Initiate integration of acquired companies ✓  MaaS pilot customers ✓  In process to acquire BKE ✓  Initiated cross sales efforts	 Full MaaS launch Norway  Launch of Mytos' asset management solution  Launch of Mytos in Sweden	 Launch of Techstep Finance in Sweden  Launch of MaaS in Sweden  Launch of new vertical solutions Expected positive effect

T E C H S T E P ¹⁹

on profitability

Financials

Status Q2 2017

Revenue development in Hardware and Solution Q1 2016 – Q2 2017

Revenue and EBITDA development Q1 2016 – Q2 2017

Organic growth of unique end-users around 6% per quarter

Total unique end-users base

• Organic end-user growth of 6% in Q2 (annualized CAGR ~ 30%)
• Primarily driven by organic growth in solution
• Effect of cross-sales still limited
• Including BKE and Conneqted end-user base ~600k users (compared to ~230k end-users in YE 2016)

Solid user growth is a platform for future revenue and profitability growth

Solid cross-sell potential as only 23% of Techstep's unique end-users have a combined hardware and solution today

T E C H S T E P ²⁴ 1) MaaS customers account for 3% of combination end-users, but only 0,5% of the total end-users

Solid customer base spanning across the Nordics includes both public and private sector

Techstep expansion

Cross sales, integration and future M&A

Roadmap

By establishing standardised processes, Techstep can reach customers and partners more effectively

Step 1 Acquire hardware vendor

Summary of Techstep

• Growth in sales Q1-2 2016 to 2017 in both hardware and solutions, more than 60% organic growth in number of users
• Prioritized long term growth over short term profitability in order to take the market position as Nordic enable of making work life mobile
• Focus on scaling up delivery, centralize, and build shared solutions across Techstep and cross sell
• Acquired two more interesting companies, BKE Telecom and Conneqted, in line with our strategy – makes us Pan-Nordic
• Going forward, focus this second half of 2017 will be organic growth and profitability