Techstep ASA — Investor Presentation 2021

May 10, 2021

Making work mobile

Q1 Presentation

10 May 2021

Highlights

• Q1 gross profit of NOK 114 million, up from NOK 80 NOK million, EBITDA/GP % million in the first quarter of 2020
• Q1 EBITDA adjusted of NOK 13 million vs NOK 12 million in the first quarter of 2020
• Signed eight new managed mobility service contracts in Q1, with an estimated value of NOK 15 million and ~3,300 managed devices
• Honourable mention in Gartner Magic Quadrant for Managed Mobility Services - Global
• Acquisition of software provider Famoc, strengthening Techstep's MMS capabilities and unlocking European expansion

Techstep's transformation journey: Becoming a Managed Mobility Services leader

Gross profit 2016-2021 Q1 LTM

M&A to strengthen MMS offering and unlock European expansion

Further expansion with new partners and Swedish operations

Focus on integration and transition towards a software & services-led company

Managed Mobility Services and recurring business model

Techstep established, acquisitions and consolidation of the Norwegian market

Organic business development and 11 acquisitions

2016 2017 2018 2019 2020 2021

Making work mobile

Bus drivers uses tablets for damage reports and timetables in the field

Electricians document their work and invoice immediately between site visits

Employees do admin work on devices while in-store

Helping customers harvest the value of Managed Mobility Services

~200 000

Devices managed by Techstep

~550

Techstep's enterprise customer base

~6 000 Enterprises in the Nordics

Some of Techstep's enterprise customers

Adding new brands and organizations to Techstep's MMS customer base

MMS contracts signed in the quarter

8 +3,300

New managed devices in the quarter

+203k

Total managed devices at the end of the quarter

Smarter travel with customised MMS solution

Techstep, through its subsidiary Optidev AB, has signed an agreement with the Swedish bus company Vy Travel AB to develop a new customised Managed Mobility Service solution

The agreement includes Advisory and Development Services for developing a customised MMS-solution, as well as Platform Management for the solution's post development administration

Optidev's TrueMobile platform provides the backbone for the system, which enables efficient development and easy deployment, helping Vy's drivers and customers travel smarter

Advisory Services

Platform management

Managed devices

9

Helping deliver excellent customer experiences

In addition to its core MMS -offering, Techstep provides complimentary solutions for the digital workplace

Techstep has signed a new agreement with Bertel O. Steen to provide a tailored cloud -based, omni -channel Customer Center -as a -Service (CCaaS) solution for handling customer dialogues via voice, chat, e mail and social media across multiple mobile, devices and locations, with a high degree of security and operational stability

The CCaaS Solution will simplify and improve Bertel O. Steen's internal customer service workflows, ultimately facilitating an enhanced customer experience

CCaaS Solution

14.5

NOKm over three years

Driving value creation with value-adding services

Using Techstep's service stack… …to build recurring revenue bundles… ...and drive gross profit per managed device

Honourable mention in Gartner Magic Quadrant for Managed Mobility Services - Global

• Gartner is an independent international IT research agency
• Gartner has recently published the Magic Quadrant for Managed Mobility Services - Global, an analysis of the service offering of international MMS providers
• Techstep received an honorable mention from Gartner as the only "Nordic-based provider with a complete MMS-offering"

HONOURABLE MENTION:

MAGIC QUADRANT FOR MANAGED MOBILITY SERVICES, GLOBAL

Financials

Q1 2021

Key figures Q1 2021

(amounts in NOK 1 000)	Q1 2021	Q1 2020	FY 2020
Revenues	305 930	292 677	1 142 866
Annual Recurring Revenue (ARR)	65 948	37 127	63 329
Gross profit	114 032	80 454	378 287
EBITDA adjusted	13 331	11 879	95 640
EBITDA	12 857	11 629	104 455
EBITA	(13 209)	(393)	17 122
EBIT	(23 999)	(5 431)	(10 771)
Net profit (loss) for the period	(24 696)	(3 391)	(23 557)
EBITDA adj. margin (%)	4.4 %	4.1 %	8.4 %
EBITDA rep. margin (%)	4.2 %	4.0 %	9.1 %
EBITA margin (%)	(4.3 %)	(0.1 %)	1.5 %
EBIT margin (%)	(7.8 %)	(1.9 %)	(0.9 %)
Net profit (loss) for the period (%)	(8.1 %)	(1.2 %)	(2.1 %)
Cash	62 796	19 996	27 203
Net interest-bearing debt	152 307	27 498	166 838
Capex1)	6 760	4 842	21 386

1). Capex does not include leased out hardware to customers, booked as capex as per IFRS 16.

EBITDA adjusted in Q1 2021 excludes non-recurring items such as M&A and restructuring costs of NOK 0.5 million.

The 2021 financial statements include the full consolidation effect of the leasing portfolio from Techstep Finance.

• Gross profit increase of 42% in Q1 2021 due to acquisitions in Q4 2020 and an increase in leased out hardware
• EBITDA adjusted is positively affected by the gross profit increase but negatively affected by increase in personnel cost due to acquisitions and reinvestments
• Increase in depreciation relates to the growth in the leasing portfolio, as well as a prudent approach on residual values
• Amortization of intangible assets, mainly from acquisitions
• Net interest-bearing debt of NOK 152 million, mainly related to Optidev acquisition

The Optidev acquisition is included in the financial statement form Q4 2020.

Strategic transformation drive Gross profit development

Gross Profit - last twelve months rolling NOK million

Advisory & Services Operating commissions Other

• Increase in the leasing portfolio; continued transformation from traditional one-off deliveries to recurring revenue
• Growth in the MMS segments Own software, Advisory & Services, driven by acquisitions
• As expected, continued reductions in commissions
• Focus on rolling out the Managed Mobility Services (MMS) offering expected to grow gross profit from software and leasing going forward
  • Driving recurring revenue/ARR, visibility and profitability

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Gross profit, EBITDA adj. and in % of GP – LTM

Proforma EBITDA adj./Gross profit

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• NOK million and percent Increase in profitability from last year due to an increase in high margin products, further supported by Optidev acquisition
  • Increased costs relative to gross profit growth, leading to reduction in EBITDA conversion in the quarter
  • Long-term focus to increase EBITDA conversion
    • Operational leverage and economies of scale
    • Increasing software, IP and mobility expertise driven profit

ARR of NOK 66 million on own software

• 78% growth in Origo users YoY, 11% compared to Q4 2020
• NOK 66 million in annual recurring revenue from own software
  • Gross margin on ARR ~95%
  • MMS related: NOK 36 million
  • Non-MMS (white label): NOK 30 million
• Increase in sale and roll-out of MMS offering to drive ARR growth

Balance sheet

NOK 1 000	31.03.2021	31.12.2020
Intangible assets	704 748	733 263
Tangible assets	207 618	173 616
Financial assets	210	213
Inventories	15 188	43 258
Accounts receivable	148 753	187 983
Other receivables	30 296	33 594
Cash and cash equivalents	62 796	27 203
Total assets	1 169 609	1 199 131
Total equity	512 073	563 451
Deferred tax	29 769	27 659
Non-current interest-bearing debt	97 181	108 539
Other non-current debt	42 029	54 488
Current interest-bearing liabilities	117 922	85 502
Accounts payable	109 625	154 442
Tax payable	(241)	(750)
Public taxes, provisions	39 105	39 756
Other current liabilities	222 145	166 044
Total equity and liabilities	1 169 609	1 199 131

• Equity ratio at 44%
• Intangible assets include goodwill and customer relations and technology
• Tangible assets consist of right-of-use assets and leasing of hardware, premises and IT licenses
• Net interest-bearing debt NOK 152 million, including acquisition loan NOK 57 million and seller's credit NOK 70 million.
• Other current liabilities includes mostly deferred revenue on hardware leasing contracts

Cash flow

NOK 1 000	Q1 2021	Q1 2020	FY 2020
Net cash flow from operational activities	93 697	(1 274)	71 120
Net cash used on investment activities	(74 471)	(23 334)	(170 361)
Net cash flow from financing activities	19 416	(3 247)	79 619
Net change in cash and cash equivalents	38 642	(27 855)	(19 622)
Cash and cash equivalents at beginning of period	27 203	44 588	44 588
Effects of exchange rate changes on cash and cash eq.	(3 048)	3 264	2 236
Cash and cash equivalents at end
of the period	62 796	19 996	27 203

• Operational cash inflow includes a net decrease in working capital of NOK 81 million driven by reduced accounts receivables and inventory, as well as increased deferred revenue on leased out hardware
• Net investments include leased out equipment of NOK 74 million, investments in software and IT development of NOK 7 million and proceeds of leasing assets NOK 7 million.
• Net financing of NOK 19 million includes lease repayments of NOK 4 million, increase in bank overdraft in cash pool of NOK 31 million offset by repayments of loans of NOK 8 million

Executing on M&A strategy

Q1 2021

Growth strategy focused on M&A

Famoc is a software company providing Enterprise Mobility Management solutions

Famoc at a glance

• Famoc delivers industry-leading software solutions for Enterprise Mobility Management

• Enterprise customers in several European countries

• Founded in 2006 with offices in Gdansk and Warsaw (Poland)

• 44 employees, with ~50% developers

Notes: PLN 1.00 = NOK 2.20 Famoc financials per February 2021 Revenue CAGR from 2019A to 1H2021

Making Techstep an all-in-one MMS provider

Famoc strengthens our service stack…

value creation…

…driving our MMS solution's ...reflected in gross profit growth potential

Advisory Services

Platform Management

Asset Management

Strengthening Techstep's MMS capabilities and unlocking European expansion

Famoc completes Techstep

• Provides customers with a complete, automated and fully integrated MMS platform
• Gives users control, security, compliance and lifecycle management
• All within one dashboard all at a lower cost

Techstep completes Famoc

• Techstep's structural capabilities and know-how to accelerate Famoc's channel sales
• Inclusion of Techstep's own IP and software into Famoc's current offering will add significant customer value, and thus quicken Famoc's growth

The combined force of the two companies are set to embrace MMS opportunities in a vastly expanded market – with a serious competitive advantage

Acquisition expected to improve Techstep's financial metrics

Key comments

%

• Famoc expected to increase Techstep's ARR by approximately 40%
• Software share of gross profit to increase from 12% to 17%
• Significant increase in segment gross profit by moving to in-house Platform Management. Gross profit impact of up to NOK 300 per managed device
• Famoc (including partner network) has a current reach of 850,000 devices, representing a significant cross-selling opportunity for Techstep
• • More competitive offering towards customers to accelerate growth

+

Notes: PLN 1.00 = NOK 2.20 All numbers LTM Famoc numbers per February 2021; Techstep numbers per 1q2021

Upcoming equity raise – Techstep has the full support of largest shareholders

Acquisition of Famoc intended to be financed through an equity private placement and a credit facility increase through DNB

Equity raise expected to be completed in the nearer term

The equity private placement will be fully underwritten by Techstep's largest shareholders: Datum AS, Middelborg Invest AS and Karbon Invest AS !

Outlook and summary

Q1 2021

Targeting strong MMS growth in 2021

	KPI	Q1 2021	Medium Term
Managed Mobility Services	New MMS contracts	8	> 30
	Origo user growth	78%*	> 100%
Financials	Gross profit growth	42%*	20-25%
	EBITDA/Gross profit	12%	20-25%
	Development capex	6.8 NOKm	30-35 NOKm

Summary

• Gross profit growth continues, stable results in slow quarter
• Signed eight new managed mobility service contracts
• Honourable mention in Gartner Magic Quadrant for Managed Mobility Services
• Acquisition of software provider Famoc, strengthening Techstep's MMS capabilities and unlocking European expansion
• Targeting strong MMS growth in 2021

10 May at 10:00 CET

30

Send your questions to ir@techstep.no

Join us here https://techstep.zoom.us/j/82808508081

Appendix

Management team

Jens Haviken – Chief Executive Officer

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 include 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 twelve years in London working with 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 – Chief Financial Officer

Mr. Drefvelin joined Techstep in January 2017 and was previously the CFO of Creuna, a leading Nordic technology and communications consultancy, for five years. Prior to this, he worked nine years as a consultant within mergers, acquisitions and IPOs.

Inge Paulsen – Managing Director Norway

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 turnaround cases as well as holding various executive positions responsible for profit & loss.

Mads Vårdal – Chief Product Officer

Mr Vårdal has been with companies within the Techstep sphere for more than 11 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.

Fredrik Logenius – Managing Director Norway

Mr Logenius is a first-mover, entrepreneur and an experienced executive within the information technology and services industry. His skill set is broad and based on entrepreneurship and strategy, agile methodologies, software development and mobile solutions. Mr Logenius was awarded Entrepreneur of the Year 2020 in Borås due to business achievements as Managing Director in Optidev AB.

Board of Directors

Jens Rugseth – Chairman of the board (since 2019)

Jens Rugseth is a co-founder and Chairman of the Board of Crayon Group ASA and Link Mobility Group ASA. He has been a serial founder of a number of companies within the IT-sector over the past 30 years. Mr. Rugseth has also held the position of Chief Executive Officer in some of the largest IT-companies in Norway, including ARK ASA, Cinet AS and Skrivervik Data AS. Mr. Rugseth studied business economics at the Norwegian School of Management. Jens Rugseth is a Norwegian citizen, currently residing in Oslo, Norway.

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 Stockholm, whereof several tech companies.

Ingrid 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, Norwegian Air Shuttle ASA, Maritime and Merchant ASA. Ms. Leisner has a background as a trader of different oil and gas products in her 15 years in Equinor 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 honours from the University of Texas in Austin.

Melissa Mulholland - Board member (since 2021)

Ms. Mulholland is Chief Executive Officer of Crayon, a worldwide digital transformation expert. Prior to Crayon, Melissa spent 12 years at Microsoft, leading strategy and business development through cloud transformation. Prior to Microsoft, she spent two years at Intel Corporation, driving a cross-company analysis into the effectiveness of using recycled chips for solar technology. She has authored 12 books focused on how to build a business in the Cloud and is a board advisor for SHE, Europe's largest gender equality conference. Ms. Mulholland holds an MA in Business Administration and Strategic Management from Regis University in Colorado.

Largest shareholders

Investor	Number of shares	% of top 20	% of total	Type	Country
DATUM AS	32 317 975	22.41%	17.63%	Ordinary	Norway
MIDDELBORG INVEST AS	21 617 764	14.99%	11.79%	Ordinary	Norway
KARBON INVEST AS	19 448 795	13.49%	10.61%	Ordinary	Norway
Swedbank AB	19 003 892	13.18%	10.37%	Nominee	Sweden
SPAREBANK 1 MARKETS AS	9 000 000	6.24%	4.91%	Ordinary	Norway
TIGERSTADEN AS	5 000 000	3.47%	2.73%	Ordinary	Norway
CIPRIANO AS	4 968 835	3.45%	2.71%	Ordinary	Norway
VERDIPAPIRFONDET DNB SMB	4 085 911	2.83%	2.23%	Ordinary	Norway
ZONO HOLDING AS	4 000 007	2.77%	2.18%	Ordinary	Norway
BRIDGE CAPITAL AS	3 738 317	2.59%	2.04%	Ordinary	Norway
TVENGE	3 000 000	2.08%	1.64%	Ordinary	Norway
SÅ&HØSTE AS	2 925 936	2.03%	1.60%	Ordinary	Norway
NORDHOLMEN AS	2 106 512	1.46%	1.15%	Ordinary	Norway
ADRIAN AS	2 038 851	1.41%	1.11%	Ordinary	Norway
PIKA HOLDING AS	1 956 512	1.36%	1.07%	Ordinary	Norway
NORDIALOG ENSJØ AS	1 946 253	1.35%	1.06%	Ordinary	Norway
UNIFIED AS	1 849 457	1.28%	1.01%	Ordinary	Norway
IDEKAPITAL AS	1 797 532	1.25%	0.98%	Ordinary	Norway
SABINUM AS	1 794 977	1.24%	0.98%	Ordinary	Norway
DATUM VEKST AS	1 600 000	1.11%	0.87%	Ordinary	Norway
Total number owned by top 20	144 197 526	100.00%	78.67%
Total number of shares	183 295 472		100.00%

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.

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