Q2 2022 Presentation

19 August 2022

Techstep at a glance

A mobile technology company enabling your organisation to utilise software & hardware to strengthen your performance

We enable remote and frontline workers to perform smartly, securely, and sustainably
We combine software, mobile devices, and services to meet your business and ESG goals
Our experts proactively ensure that your mobile ecosystem is optimised for success

Highlights Q2 2022

Recurring Revenue**

Strengthening position and recognised as a global challenger by Gartner in a managed mobility market with double digit growth*
Q2 financials reflect transformation strategy stable but positive mix development
- o Stable total revenues, gross profit and EBITDA adjusted
- o Record recurring revenue annualised of NOK 281m of which Own software ARR of NOK 101m
- o In addition, NOK 10m from recent software wins, not yet included in ARR
Strong commercial momentum
- o 11 new Managed Mobility Services (MMS) contracts in Q2 adding NOK 14m in contract value and NOK 9m in recurring revenue annualised
Continued transformation to unlock profitable MMS growth at scale
- o Simplification and standardisation of product portfolio and solutions
- o Aligning organisation around simplified offering and streamlining cost base
- o Acquired cybersecurity SaaS company Crypho

*Mordor Intelligence | Global Managed Mobility Service Market (2022-2027)

**Recurring revenue includes contracts of 24 months or more excluding mobile expenses management (MEM) white label (with three months notice before year-end) Note: The figures above are based on the recognised recurring revenue isolated each quarter, annualised. Advisory & Services includes third party software

Increased momentum in MMS wins

Growing through new and existing customers

Recognised as Challenger Gartner MQ

Techstep is recognised as Challenger in Gartner's recent Magic Quadrant for Managed Mobility Services

• Strengths

o Big focus on self-service and Techstep resolves 60%+ of all help desk incidents via self-heal or self-service portal
o Techstep targets business outcomes and is also one of few providers that includes sustainability considerations in its strategy

• Cautions

o No own nor contracted depots outside of Europe Enterprises with requirements for device delivery into other regions should verify
o Innovative vertically focused offerings are purpose built and Techstep can become faster to make these innovations generally available across its entire footprint
o Pricing is higher than average both with regards to implementation and ongoing monthly charges

Delivering customer value

Increase Quality & Efficiency through tailormade industry solutions

Sustainable, Affordable & Freedom to choose

Manage and control your devices easily and securely

Simplification of product offering to improve growth and profitability

Original product portfolio, incl. number of products

Standardise and Scale

Customer case: Nortel

Value: minimum NOK 3 mill ARR

New agreement with Nortel, the third largest and fastest growing challenger in the Norwegian mobile operator market for companies
All Nortel's customers will have Techstep Expense included in their subscription plans, commencing from the fourth quarter 2022
Techstep Expense* is a solution to manage mobile subscription costs providing visibility, control, and certainty for the organisation. Through a defined mobile policy, the cost is split between company and employee, providing freedom of mobile usage
Techstep will in addition enhance its customer offering by becoming a distribution partner of Nortel's products and services

Customer case: DNV AS

Duration: 12 months (+24 optional)	2 300 users
Portfolio: SmartDevice	Solution: Techstep Lifecycle
Annual contract value: NOK 12 mill

DNV will utilise Techstep's SmartDevice to ensure a better lifecycle handling of their large fleet of mobile devices, which will result in reduced total cost of ownership and enhanced sustainability for DNV, and easier use for its employees
Techstep SmartDevice is the complete and sustainablesolution to help organisations integrate andmanage all mobile devices from procurementto end of life, including choice of device, repair, and return. Giving the organisation visibility and cost control over all their mobile devices
Delivery of service is scheduled to commence by end of Q3, 2022

Financials

Key figures

(Amounts in NOK 1000)	Q2 2022	Q2 2021	HI 2022	HI 2021	2021

Revenues	317 199	324 737	663 425	630 667	1305 090
Annual Recurring Revenue (ARR) - own software	101 469	64 303	101 469	64 303	97 423

Gross profit	111 938	113 879	225 502	227 911	459 785

EBITDA adjusted17	12 182	13 288	26 273	26 619	69 616
EBITDA	12 178	5 251	65 634	18 108	52 430
EBITA	(15 571)	(19 925)	13 997	(33 135)	(55 799)
EBIT	(31 106)	(32 063)	(16 087)	(56 062)	(110 522)
Net profit (loss) for the period	(31 467)	(23 013)	(18 983)	(47 709)	(102 660)

EBITDA adj. margin (%)	3.8 %	4.1 %	4.0 %	4.2 %	5.3 %
EBITDA rep. margin (%)	3.8 %	1.6 %	9.9 %	2.9 %	4.0 %
EBITA margin (%)	-4.9 %	-6.1 %	21%	-5.3 %	-43 %
EBIT margin (%)	-9.8 %	-9.9 %	-2.4 %	-8.9 %	-8.5 %
Net profit (loss) for the period (%)	-9.9 %	-7.1 %	-2.9 %	-7.6 %	-7.9 %

Cash	29 922	154 036	29 922	154 036	50 350
Net interest-bearing debt	237 054	64 330	237 054	64 330	121 600
Capex2)	(16 702)	(17 112)	(35 609)	(23 872)	(48 883)

1) EBITDA adjusted in H1 2022 excludes non-recurring items such as M&A related costs of NOK 0.5 million and structural gains from sales of NOK 40.5 million

2) Capex excludes investment in the hardware-as-a-service portfolio, shown as a separate line item under investing activities in the consolidated statement of cash flow.

• Q2 YoY revenue decline of 2% y/y, H1 growth of 5% y/y

o Decline in Advisory & Services revenue (sale of Voice & Contact Centre), partly compensated by growth in Own Software
o 56% growth in recognized revenue from own software y/y (incl. Famoc acquisition)

• ARR from own software up 58% YoY

o Positive contribution from Famoc acquisition
o 3% sequential growth

• Gross margin flat at 35% y/y, slight gross profit decline

o Adjusted EBITDA at NOK 12.1 million, Opex and personnel cost down y/y

• Increase in NIBD, as we continue to invest in the transformation

o High cash outflow in the quarter, due to high capex, negative working capital effects and prepayments

Transforming to recurring revenue

*Recurring revenue includes contracts of 24 months or more excluding mobile expenses management (MEM) white label (with three months notice before year-end)

*The figures above are based on the recognised recurring revenue isolated each quarter, annualised. Advisory & Services includes third party software

Record high recurring revenue, supporting transformation

Record high recurring revenue with 4% sequential growth
Of NOK 281 million, NOK 101 million is ARR on own software, with ~90% gross margin
NOK 10 million in backlog from recent Own software wins, not yet included in ARR
Momentum in Advisory & Services, due to increased managed services contracts in Sweden

Reported GP development by segment

Gross Profit - last twelve months rolling NOK million

Relatively flat overall development in reported gross profit LTM
- o Improvement in Own Software offset by decline in Advisory and Services, as a result of divestment and acquisition
- o Stable development in Hardware gross profit
Focus is to deliver backlog of software ARR Mobility Services contracts to grow gross profit going forward
- o Momentum and backlog is building in own software with high gross profit margins

Please note that we have re-stated the financial figures per Q2-2021, Q3-2021 and Q4-2021, due to improved data quality.

Advisory & Services Operator commission

Proforma GP & EBITDA adj. development

Gross profit, EBITDA adj. and in % of GP

NOK million

Proforma includes the acquisitions of Optidev (Q3 2020) and Famoc (Q3 2021), and divestment of voice and contact centre (effective from Q1 2022). Q4 2020 includes Hardware-as-a-Service periodization effect of NOKm 5 relating to Q1 to Q3 2020, sum NOKm 15.

A slight YoY decrease in proforma gross profit from NOK 118 million in Q2 2021 to NOK 112 million in Q2 2022
- o Higher EBITDA/GP of 11% in Q2 2022, due to lower OPEX and payroll compared to Q2 2021 (NOK 7m reduction in Opex and payroll y/y)
Long-term focus to increase EBITDA conversion, with growth from higher margin revenue streams
- o Key focus has been to drive the transformation and position of Techstep, to a more standardised and scalable company
- o Scalability, ARR growth and cost optimisation (NOK 40-50 mill) will drive higher profits medium term and convert a higher share of GP to EBITDA

Balance sheet

(Amounts in NOK 1000)	Q2 2022	2021
Intangible assets	805 500	777 912
Tangible assets	187 606	179 043
Financial assets	2633	1814
Inventories	18 680	19 391
Accounts receivable	192 796	230 229
Other receivables	40 659	31 435
Cash and cash equivalents	29 922	50 350
Assets classified as held for sale		24 482
Total assets	1 277 796	1314 655

	Q2 2022	2021
Equity	530 483	555 586
Deferred tax	21875	14 645
Non-current interest-bearing borrowings	97 016	97 402
Other non-current debt	36 053	43 305
Current interest-bearing borrowings	169 961	74 548
Accounts payable	168 332	193 833
Tax payable	2247	653
Public duties	28 838	39 577
Other current lightlities	222 991	295 106
Total equity and liabilities	1 277 796	1314 655

Equity ratio at 42%
Intangible assets are mainly goodwill of NOK 604 million and customer relations and technology of NOK 190 million
Tangible assets consist of Hardware-as-a-Service to customers of NOK 156 million and right-of-use assets of NOK 24 million from premises and other items
Non-current interest-bearing debt includes acquisition loans of NOK 67 million and seller's credit of NOK 30 million
Current interest-bearing debt includes acquisition loans of NOK 16 million, seller's credit of NOK 26 million and utilized credit facility of NOK 128 million

Cash flow

(Amounts in NOK 1000)	Q2 2022	Q2 2021	H1 2022	H1 2021	2021
Net cash flow from operational activities	7 540	19 240	1573	112 938	128 930
Net cash used on investment activities	(48 491)	(38 943)	(106 534)	(113 414)	(174 594)
Net cash flow from financing activities	31580	109 308	84 584	128 724	71244
Net change in cash and cash equivalents	(9 370)	89 605	(20 377)	128 247	25 580
Cash and cash equivalents at beginning	38 591	62796	50 350	27 203	27 203
of period
Effects of exchange rate changes on cash	702	1634	(51)	(1 414)	(2 433)
and cash equivalents
Cash and cash equivalents at end of	29 922	154 034	29 922	154 036	50 350
period

H1 has been intensive cashflow wise, with both negative working capital and still high capex investments
Net cash flow from operating activities in Q2 was NOK 7.5m, which includes a negative effect of NOK 4 million from an increase in working capital
Net cash flow from investment activities in Q2 relates to investment in our HwaaS portfolio and capex related to software development and IT investments (NOK 16.7m)
Cash and cash equivalents NOK 30 million at quarter end
Cash flow in H1 2021 was positively skewed vs H2 2021. For H1 2022 cash flow is negatively skewed, making y/y comparison challenging
We expect improved cash flow in H2 2022

Outlook and strategic development

Continue transformation & profitable growth

Focus on continued transformation to strengthen growth & unlock profitability

Simplification of product offering to enable growth
Through standardisation, change of ERP systems and continued transformation into a recurring services business model, Techstep expect to streamline the opex and capex base and reduce costs with 40-50 million the next 6-18 months

Focusing on continued MMS growth

	KPI	Medium term
Managed Mobility Services	New MMS contracts	40-50
	MMS users*	> 100%

Financials	Gross profit growth	20-25%
	EBITDA adj./Gross profit	20-25%
	Development capex	NOK 45-55 mill
	Cost optimisation	NOK 40-50 mill

*Smart platform software users

Growing demand

Mordor Intelligence Definition: Managed mobility services (MMS) are defined as the procurement, deployment, and management of mobile devices and apps and PC software and services, connecting out-of-office workers to the enterprise environment. Allied services' options range from short-term post-go-live assistance to long-term application operations. Managed mobility services involve the management of mobile devices, networks, systems, and applications. The scope of the study is limited only to the services offered in the market for mobility management, and the cloud-based segment includes the hybrid deployment within the scope. 1)The global managed mobility service market (henceforth, referred to as the market studied) was valued at USD 3462.1 million in 2021, and it is expected to reach USD 12427.1 million by 2027, registering a CAGR of 24.27% (henceforth, referred to as the forecast period).

Summary

Recognised in Gartner Magic Quadrant for Managed Mobility Services: Reinforcing position as a leading European enabler of smarter mobile technology
The transformation into a software-driven recurring services company is progressing: Good development in the transformation of Techstep, with recurring revenue annualised at record level. Flat development in gross profit and adjusted EBITDA
Commercial momentum continues: Sales contracts signed with 9 MNOK in recurring revenue annualised & 11 new Managed Mobility Services (MMS) contracts in Q2
Focus on continued transformation to unlock profitable growth: Simplification of product offering to enable growth and optimisation of cost base to secure profitability

Q&A

Appendix

Management team (1/2)

Børge Astrup – Chief Executive Officer

Mr. Astrup is an experienced business leader committed to creating a winning working environment. Børge Astrup has experience as the CEO of Puzzel, an international fast-growing cloud contact centre software (CCaaS) company, as well as the managing director of Intelecom Group. He has also held various management positions at Visma, the leading European provider of core business software.

Gunnar Aasen – Chief Revenue Officer

Mr. Aasen is a commercial leader with substantial C-level experience at driving international B2B market penetration and commercial change, delivering growth from existing and new customers via direct sales and channels. Mr. Aasen comes from the position as CCO of Puzzel and member of the Executive Board, a fast-growing cloud contact centre software (CCaaS) company. He has also held various management positions at SuperOffice and Loxysoft with experience from Management of Sales & Marketing and Customer Relationship, Enterprise Software and Telecommunications.

Anita Huun – Chief Financial Officer

Ms. Huun is an experienced CFO, with a broad background from the IT industry and Capital markets in Norway, but also most recently from the Norwegian publishing industry where she held the position as CFO of Cappelen Damm. Previous experience include CFO at Microsoft Norway, as well as sell side equity analyst for Handelsbanken Capital Markets covering the Norwegian IT sector. She is also a board member of Nordic Semiconductor. Anita has a MSc from the Norwegian School of Economics (NHH), with specialization in Finance.

Bartosz Leoszewski– Chief Technology Officer

Mr. Leoszewski is an experienced IT and software leader and entrepreneur. He is experienced in building software products and their strategy, setting a long-term technology direction with cybersecurity always at the forefront. As a software engineer in 2006 Mr. Leoszewski co-founded Famoc, where he was first responsible for product development and engineering as Chief Technology Officer, and in 2012 transitioned to a CEO role. Famoc was acquired by Techstep in 2021.

Ellen Skaarnæs – Chief People Officer

Ms. Skaarnæs is an experienced, strategic and business-oriented HR leader with a keen focus on delivering results and adding value to the business. She has a broad background from international organizations at both strategic and operational level. With her 13 years in Shell as HR advisor to Managing Director, and 5 years at Coca-Cola Enterprises as Ass. she brings an extensive experience from Performance- and Talent management and Change management in addition to solid leadership and coaching experience.

Sheena Lim –Chief Marketing Officer

Ms. Lim brings extensive international experience from marketing, branding and communication, from her background as a consultant in Telenor and McCann. She has valuable experience from systems with high demands for collaboration across functions and countries, as well as the ability to modernise methods, processes and tools. Ms Lim comes from the position as Head of Marketing and Communication in Zalaris, a provider of simplified HR and payroll administration. Ms Lim has an executive MBA from BI Norwegian Business School and ESCP European Business School, as well as a bachelor's degree for business (marketing) from University of Monash.

Management team (2/2)

Fredrik Logenius– Chief OperationalOfficer

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.

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.

Erik Haugen – Chief Transformation 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.

Board of Directors

Jens Rugseth – Chairman of the board (since 2019)

Mr. 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 residing in Oslo, Norway.

Ingrid Leisner - Board member (since 2016)

Ms. Leisner is an experienced board member. Her directorships over the last five years include current board positions in Xplora Technologies AS, 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.

Harald Arnet - Board member (since 2021)

Mr. Arnet has more than 30 years of experience in national and international finance, industrial and financial investments. He is the CEO of Datum AS, one of the Company's larger shareholders, and has held several board positions in listed and non-listed companies, including Kahoot! AS, NRC Group ASA and several companies within the Datum group. He holds a master's degree from University of Denver and London Business School.

Michael Jacobs - Board member (since 2022)

Mr. Jacobs is the CEO of Fell Technology. He is passionate about customer focus, technology innovation and building strong diverse teams, and has more than 30 years experience from managerial positions in international technology companies. Prior to Fell Technology, he held the position as CEO of Atea Norway where he spent 6 years improving the business performance and transformation to more value-added services for customers, delivering solid financial results during his tenure. Previous experience include Managing Director for Microsoft Norway, Managing Director for Dell in Norway, Sweden and Denmark, and various national and international positions at Oracle and Telenor. Mr Jacobs has a degree from California Lutheran University and continuing education from, among others, Harvard University.

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

Shareholder	# Of shares	Ownership %

DATUM AS	36615646	17.34%
KARBON INVEST AS2	21927928	10.39%
MIDDELBORG INVEST AS	20 017 707	9.48%
Swedbank AB	18 965 381	8.98%
VERDIPAPIRFONDET DNB SMB	7129473	3.38%
DnB NOR Bank ASA	5362610	254%
ALUNDO INVEST AS	50000000	2.37%
TIGERSTADEN AS	46300000	2.19%
CIPRIANO AS	4538498	2.15%
Saxo Bank A/S	3043183	1.44%
TVENGE	30000000	1.42%
ZONO HOLDING AS3	2725238	1.29%
BRIDGE CAPITAL AS	25000000	1.18%
GIMLE INVEST AS	2465987	1.17%
NORDHOLMEN AS	2262551	1.07%
CAMIKO AS	2243821	1.06%
PIKA HOLDING AS	2143455	1.02%
ADRIAN AS	2038851	0.97%
UNIFIED AS	1969264	0.93%
IDEKAPITAL AS	1949690	0.92%
Total number owned by top 20	150 529 283	71.29%
Total number of shares	211 982 788	100.00%

Shareholder lists are provided by Oslo Market Solutions with data from EURONEXT VPS Updated 30 June 2022.

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

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

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

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 v iew 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.