Q1 2022 Presentation

12 May 2022

Highlights Q1 2022

• Transformation into a software-driven recurring services company progressing

o Financial results are lagging due to implementation and lead times
Increased commercial momentum
- o 17 new Managed Mobility Services (MMS) contracts in Q1 adding NOK 55m in contract value and NOK 11m in annualised recurring revenue
- o Growing demand for Managed mobility services, ARR from own IP up 50% YoY
Announced acquisition of cybersecurity SaaS company Crypho
- o Complementing current software portfolio and adding strategic and commercial value
Launched rebranding of Techstep
- o Reinforcing position as a leading European enabler of smarter mobile technology

Delivering customer value

Increase Quality & Efficiency through tailormade industry solutions

Sustainable, Affordable & Freedom to choose

Manage and control your devices easily and securely

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).

Increased momentum in MMS wins

Growing through new and existing customers

Customer case: Pågen

	Duration: 60 months	450 users
	Bundle: SmartWorks, SmartDevice & SmartControl
	SEK 5.3 mill annualised recurring revenue
•	Pågen is Sweden's leading bakery in packaged fresh bread and baked goods, operating in Sweden, Denmark, Finland, Norway, Iceland and Germany
•	Techstep has developed an front-end app for Pågen's sales representatives working in the field	Swedish

The solution will improve logistics, inventory lists and order entries, and will be integrated with the company's own ERP system, resulting in streamlining the work of Pågen's sales representatives, and ultimately enhancing the customer experience of its product
Techstep will also provide hardware-as-a-service, managed services, and support as part of the agreement

Acquisition of cybersecurity SaaS company

Crypho is an award-winning end-to-end encrypted mobile messaging and information file-sharing software for organisations
Helps customers to secure their internal and external communication
GDPR compliant, easy to use, administer and scale
Existing customers include law enforcement, government, health and other private sector businesses
ARR of NOK 1.9 million, with NOK 130 in ARPU per month
The acquisition price is NOK 10 million at enterprise value basis and is fully financed through a combination of share issue, earn-out and debt

Strategic fit with Crypho & Techstep

Helps existing customers to secure their internal and external communication
Crypho is a good fit for our customers and our position with smarter mobile technology and will strengthening our security position and be a differentiator towards competitors
Existing customers of both SmartControl and SmartWorks have requested similar functionality and this gives us a upsale potential on current Techstep customer base
Helping customers reduce their carbon footprint by replacing data storage from e-mail attachments with file share
A service that is used daily by users and will strengthening the brand position of Techstep

say that mobile devices are the company's biggest security risk¹

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Rebranding of Techstep

A clear focus and brand story
Express who we are and what we do
Sets us apart from our competitors
The leading mobile technology powerhouse in Europe
See more at www.techstep.io

Financials

Key figures

Amounts in NOK 1 000	Q1 2022	Q1 2021	FY 2021	•
				Q1 YoY revenue growth of 13% (15% organic)
Revenues	346 226	305 930	1 305 090	o Strong growth in hardware portfolio, both in HWaaS and Hardware
Annual Recurring Revenue - own IP (ARR)	98 821	65 948	97 423	one-off
				25% growth in own software YoY o
Gross profit	113 565	114 032	459 785	• ARR from own software up 50% YoY
EBITDA adjusted1)	14 091	13 331	69 616	o 2% sequential growth, as delays in onboarding of recent customer
EBITDA	53 457	12 857	52 430	wins
EBITA	29 568	(13 209)	(55 799)	• Gross profit flat, margin down from 37% to 33% YoY
EBIT	15 019	(23 999)	(110 522)
Net profit (loss) for the period	12 484	(24 696)	(102 660)	Decline in margin due to customer and product mix. Q1 was a o strong quarter for the Hardware sales, with lower margins
EBITDA adj. margin (%)	4.1%	4.4%	5.3%	o EBITDA reported includes 40m gain from sale of Voice and Contact
EBITDA rep. margin (%)	15.4%	4.2%	4.0%	centre
EBITA margin (%)	8.5%	(4.3%)	(4.3%)	• Increase in NIBD, as we continue to invest in the
EBIT margin (%)	4.3%	(7.8%)	(8.5%)
Net profit (loss) for the period (%)	3.6%	(8.1%)	(7.9%)	transformation
				Acquisition of Techstep Finance and increase in working capital o
Cash	38 591	62 796	50 350
Net interest-bearing debt	189 530	152 307	121 600	o Capex intensive quarter, as large IT project finalized in Q1
Capex2)	18 908	6 760	48 883

1) EBITDA adjusted in Q1 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.

Transforming to recurring revenue

Reporting on all recurring revenue to reflect ongoing focus and transformation

2% sequential growth in recurring revenue
Of NOK 270 million, NOK 99 million is ARR on own software, with ~90% gross margin, and momentum improving
- o 10% sequential growth in SmartDevice software platform in Norway in Q1
Momentum in Advisory & Services, due to increased managed services contracts in Sweden

*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

Reported GP development by segment

Gross Profit - last twelve months rolling NOK million

Flat overall development in reported gross profit
- o Increase in Own Software
- o Advisory & Services remained flat
- o Hardware one-off down
Focus is to deliver backlog of Managed Mobility Services contracts to grow gross profit going forward
- o Momentum and backlog is building in own software with high gross profit margins

Proforma GP & EBITDA adj. development

Gross profit, EBITDA adj. and in % of GP

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

A slight YoY improvement in proforma gross profit in Q1
- o Higher EBITDA/GP of 12%, due to lower OPEX and payroll vs Q1 21
Sold the voice and contact centre business for NOK 65.7m, closed in Q1
- o Included Gross profit of NOK 22 million in 2021
- o Non-core asset with new strategy, as we streamline operations and focus on software and mobile technologies
Long-term focus to increase EBITDA conversion, with growth from higher margin revenue streams
- o Currently investing to drive the transformation and position of Techstep

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.

Balance sheet

tech Step
-----------

•		Equity ratio at 44%
---	--	---------------------	--	--	--

Intangible assets are mainly goodwill of NOK 591 million and customer relations and technology of NOK 184 million
Tangible assets consist of Hardware-as-a-Service to customers of NOK 152 million and rightof-use assets of NOK 28 million from premises and other items
Non-current interest-bearing debt includes acquisition loans of NOK 65 million and seller's credit of NOK 33 million
Current interest-bearing debt includes acquisition loans of NOK 18 million, seller's credit of NOK 26 million and utilized credit facility of NOK 85 million

Amounts in NOK 1 000	31.12.2021	31.12.2021

Intangible assets	786 170	784 268
Tangible assets	180 437	179 363
Financial assets	2 092	1 814
Inventories	25 818
Accounts receivable	172 036	17 477
	43 191	230 229
Other receivables		31 602
Cash and cash equivalents	38 591	50 350
Assets classified as held for sale	-	24 482
Total assets	1 248 335	1 319 585

Total equity	554 274	559 642
Deferred tax	23 215
Non-current interest-bearing debt	98 098	17 181
Other non-current debt	35 240	97 357
		43 601
Current interest-bearing liabilities	130 022	74 593
Accounts payable	147 021	193 833
Tax payable	1 414	( 1 169)
Public taxes, provisions	37 724	39 577
Other current liabilities	221 326	294 970
Total equity and liabilities	1 248 335	1 319 585

Cash flow

Amounts in NOK 1 000	Q1 2022	Q1 2021	FY 2021

Net cash flow from operational activities	(5	93	128
	967)	697	930

Net cash used on investment activities	(58	(74	(174
	043)	471)	594)

Net cash flow from financing activities	53	19	71
	004	416	244

Net change in cash and cash equivalents	(11	38	25
	006)	642	580

Cash and cash equivalents at beginning of	50	27	27
period	350	203	203
Effects of exchange rate changes on cash	(754)	(3	(2
and cash eq.		048)	433)
Cash and cash equivalents at end	38	62	50
of the period	591	796	350

Net cash outflow from operating activities includes a negative effect of NOK 18 million from an increase in working capital
Net cash flow from investment is due to payments related to the acquisition of remaining shares in Techstep Finance, capital expenditures related to software development and IT investments of NOK 19 million
Cash and cash equivalents NOK 39 million at quarter end

Outlook and summary

Focusing on continued MMS growth

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

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

Summary

Transformation into a software-driven recurring services company progressing: Focus on implementation
Increased commercial momentum: 17 new Managed Mobility Services (MMS) contracts in Q1
Announced acquisition of cybersecurity SaaS company Crypho: Complementing current software portfolio
Launched rebranding of Techstep: Reinforcing position as a leading European enabler of smarter mobile technology

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.

Ellen Skaarnæs – Chief HR 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.

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.

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 Commercial Officer

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

Investor	Number of shares	% of top 20
DATUM AS1)	36 615 646	17.47%
KARBON INVEST AS2)	21 804 349	10.40%
MIDDELBORG INVEST AS	19 014 507	9.07%
Swedbank AB	18 959 968	9.04%
ALUNDO INVEST AS	9 000 000	4.29%
VERDIPAPIRFONDET DNB SMB	7 203 900	3.44%
DnB NOR Bank ASA	7 175 612	3.42%
CIPRIANO AS	4 538 498	2.17%
Saxo Bank A/S	3 043 183	1.45%
TVENGE	3 000 000	1.43%
GIMLE INVEST AS	2 520 077	1.20%
BRIDGE CAPITAL AS	2 500 000	1.19%
NORDHOLMEN AS	2 262 551	1.08%
PIKA HOLDING AS	2 143 455	1.02%
ADRIAN AS	2 038 851	0.97%
UNIFIED AS	1 969 264	0.94%
IDEKAPITAL AS	1 949 690	0.93%
NORDIALOG ENSJØ AS	1 946 253	0.93%
CAMIKO AS	1 807 894	0.86%
SPIRALIS AS	1 714 800	0.82%
Total number owned by top 20	144 197 526	78.67%
Total number of shares	183 295 472	100.00%

Shareholder lists are provided by Oslo Market Solutions with data from EURONEXT VPS Updated 31 March 2022.

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

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.

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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.

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