Techstep ASA — Investor Presentation 2017

Apr 4, 2017

Company presentation

March 2017 "We make the work life mobile"

Introduction

Techstep is positioning itself as a leading B2B digital workplace provider

Simplified company structure

Introduction & Summary

Market

Platform and Solutions

End-user Base

Strategy Execution

• ➢ The enterprise market is demanding applications similar to what we as consumers are used to
• ➢ A large share of corporates are focusing on digitization and mobilization of the workforce
• ➢ This creates growth potential for companies able to offer these kind of services the related platform required to move business processes over to digital
• ➢ The market for enterprise mobility solutions is in "double digit growth"
• ➢ Techstep has created a "one stop shop" for enabling enterprises "to make the work life mobile"
• ➢ Techstep offers integrated solutions of hardware, subscriptions, mobile device management, support and related software solutions (including a number of different 3rd party applications)
• ➢ Techstep has become a pan-Nordic company which enable to makes mobility/digitization simple
• ➢ Techstep offering will over time be delivers more and more "as-a-service"
• ➢ Pan-Nordic customer base which include both prime private and public customers
• ➢ Over 4000 customers with a combined end-user base of above 400 000
• ➢ Large cross sale potential, and upscale potential with the customers employing above 1 500 000 people
• ➢ Several large companies interested and willing to drive innovation together with Techstep
• ➢ Equity issue of NOK 100m and 3 acquisitions completed year to date (and still firepower left)
• ➢ The Nordic one-stop-shop-offering largely complete
• ➢ Positive feedback and strengthened relationship with both customers and partners
• ➢ Product launch and customers now the immediate focus and deliverables

Market

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	安安	59 994
Manufacture		215521
Electricity, water supply, sewerage, waste management	咏	29 639
Construction	成成	207 492
Wholesale and retail trade		349 128
Transportation and storage	娇	138614
Accommodation and food service activities	咏	86 117
nformation and communication	ç	88 199
inancial and insurance activities	ç	46839
Real estate, professional, scientific and echnical activities	ı۸	161247
Administrative and support service activities	모	120678
2 ublic adm., defense, soc. security	딫	163 153
Education	ı۸ı	209 533
Human health and social work activities	咏	532 683
Other service activities	ıПı	99 002
Jnspecified	ıN,	21112

Mobile solutions

Consumers accustomed to advanced mobile solutions; businesses to follow suit

Consumer solutions Business solutions

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

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

T E C H S T E P ⁸ Source: Arthur D. Little Digital transformation study 2015 Note: 1) European companies

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

Platform and Solutions

Techstep will bring to market all the offerings necessary to make work life mobile, realizing digitization in companies

Case example

Example of solution delivered to SAS: Digitization of the value chain

Background

Physical instruction manuals of ~42-60 kg. Updated every 6 months.

Perform calculations on iPad (e.g. fuel optimization just before take off)

Plan and improve efficiency before, during and after a flight

Improve customer experience / service awareness related to the Eurobonus program

Solutions delivered by Techstep

• Hardware and device management with SLA¹
• 2 nd and 3rd line support
• Enterprise mobility management solutions
• Provisioning and single sign on
• Security
• Licenses (3rd party SW)
• Application deployment and management
• API integration
• Advisory

Solution enabled by Techstep

Techstep offer a combination of mobile and IT hardware and solutions to create the next generation communication provider

Techstep Solutions HUB

Techstep creates value by attracting/acquiring solution providers, bundling products and services, and sell solutions through own sales channels

Easy to buy. Complete digital workplace delivered as a monthly subscription.

MaaS* is delivered based on 3 different service levels - each level contains a set of functionalities in combination with a predefined set of units

Customer Base

Solid customer base of spanning across the Nordics with both public and private sector represented

This overview contains selected customers, not comprehensive Through acquisitions, Techstep has significantly increased their end-user base and cross sale potential since year end 2016

Strategy Execution

Firm growth strategy

2016 Revenues (NOK million)

2016 EBITDA (NOK million)

Sales growth ambition

• Solutions segment expected to be main growth driver
• Run rate out of 2017 ambitions: Double digit growth versus 2016 revenues

Margin expansion ambition

• Solutions segment has higher margins than hardware sales
• Increased solutions sales versus hardware sales expected to expand margins
• Run rate out of 2017 ambitions: EBITDA adjusted margin of approx 8-10%

Market and stakeholder feedback

Won attractive contract with prime international service based on combined Techstep offering

Innovation/ Product

Partners

Customers/

users

Acquired and established Techstep companies working closely together to launch new products and services shortly

Summary and outlook

Customer segments, solutions offerings and Nordic presence

Market

Platform and Solutions

End-user Base

Strategy Execution

• ➢ The enterprise market is demanding applications similar to what we as consumers are used to
• ➢ A large share of corporates are focusing on digitization and mobilization of the workforce
• ➢ This creates growth potential for companies able to offer these kind of services the related platform required to move business processes over to digital
• ➢ The market for enterprise mobility solutions is in "double digit growth"
• ➢ Techstep has created a "one stop shop" for enabling enterprises "to make the work life mobile"
• ➢ Techstep offers integrated solutions of hardware, subscriptions, mobile device management, support and related software solutions (including a number of different 3rd party applications)
• ➢ Techstep has become a pan-Nordic company which enable to makes mobility/digitization simple
• ➢ Techstep offering will over time be delivers more and more "as-a-service"
• ➢ Pan-Nordic customer base which include both prime private and public customers
• ➢ Over 4000 customers with a combined end-user base of above 400 000
• ➢ Large cross sale potential, and upscale potential with the customers employing above 1 500 000 people
• ➢ Several large companies interested and willing to drive innovation together with Techstep
• ➢ Equity issue of NOK 100m and 3 acquisitions completed year to date (and still firepower left)
• ➢ The Nordic one-stop-shop-offering largely complete
• ➢ Positive feedback and strengthened relationship with both customers and partners
• ➢ Product launch and customers now the immediate focus and deliverables

Appendix

Appendix

Management team

Gaute Engbakk – CEO

Mr. Engbakk is an experienced change leader from working many years in Accenture with large international companies. He joined Techstep in November 2016. In Accenture, he worked in a variety of markets and industries and built up a division within analytics and information management. Mr. Engbakk led Creuna AS, a significant Nordic player within digital solutions, branding and advertising during 2010-2014, and during 2014-2016 he was the CEO of Gambit Hill & Knowlton Strategies.

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

Top 20 shareholders at March 31, 2017

Name	Shareholding	%
ZONO HOLDING AS	62 706 966	45,0%
PALOS AS	11 666 667	8,4%	Among them Datum,
DATUM AS	10 850 000	7,8%	Middelborg, Cipriano
SKARESTRAND INVEST AS	7 513 372	5,4%
DNB NOR MARKETS, AKSJEHAND/ANALYSE	5 263 158	3,8%
DOVRAN INVEST AS	3 763 372	2,7%
JYST INVEST AS	3 763 372	2,7%
TINDE INDUSTRIER AS	3 763 372	2,7%
TVENGE	2 500 000	1,8%
NOMO HOLDING AS	1 946 253	1,4%
NORDIALOG ENSJØ AS	1 946 253	1,4%
ARCTIC FUNDS PLC	1 871 434	1,3%
VERDIPAPIRFONDET DNB SMB	1 587 276	1,1%
SPENCER TRADING INC	1 438 596	1,0%
VINTERSTUA AS	1 200 000	0,9%
INTELCO CONCEPT AS	1 101 706	0,8%
KAPPA FINANS AS	1 051 315	0,8%
TVENGE	1 000 000	0,7%
VATNE EQUITY AS	820 000	0,6%
BELVEDERE HOLDING AS	724 209	0,5%
Sum Top 20	126 477 321	90,9%
Other	12 724 108	9,1%
Total sum	139 201 429	100,0%

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.

This Presentation does not constitute any solicitation for any offer to purchase or subscribe any securities and is not an offer or invitation to sell or issue securities for sale in any jurisdiction, including the United States. Distribution of the Presentation in or into any jurisdiction where such distribution may be unlawful, is prohibited. The Company and its advisors require persons in possession of this Presentation to inform themselves about, and to observe, any such restrictions.

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.

This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo City Court as exclusive venue.

By receiving this Presentation, you accept to be bound by the terms above.