Q2 2024 Presentation

We make mobile technology work for you

Techstep at a glance

A mobile & circular technology company, enabling organisations to perform smartly, securely and more sustainably

Combining software, devices and expertise
Enabling office and frontline workers to optimise their work
Enabling and accelerating Mobile and IT service providers
Leading provider of managed mobility services (MMS) in Europe

~270

employees in Norway, Sweden, Denmark & Poland

NOK 1.0 billion

total revenue Q2 2024 LTM

220+

Customers with recurring revenue

40+

Partners in a fastgrowing eco-system 2 500 000 + MMS devices

NOK 28 million EBITA adj. Q2 2024 LTM

Challenger

2023 Gartner® MQ for Managed Mobility Services

2,100+

customers across different industries and sectors

	Bussgods SAS postmord
Statnett	SS MM sikri
MARTINA HANSENS HOSPITAL	11 Arbeidstilsynet Crayon AKADEMISKA SJUKHUSET
701770	DNV > equinor
ANA pris	posten DB SCHENKER
ensidige (i	agen 7 Krogsveen
MAX : : .	bama Oslo
NOKAS	· B . HELSE STAVANGER 6 Stavanger universitetssjukehus SECURITAS
sveriges Radio	VOICE OLAV THON GRUPPEN

Highlights Q2 2024

Positive EBITA adj. for the seventh consecutive quarter

Recurring revenue annualised slightly up from previous quarter and up 4%y/y
Net gross profit impacted by lower device volumes and revenue mix
Improving conditions in Norway and Poland, challenging market in Sweden
Continually delivering on cost optimisation

Strengthened indirect and direct sales channels through strategic agreements

Several new signings and renewed contracts with key customers and strategic partners
Expanding rugged device and service business through strategic partnership with Consafe Logistics
Signed agreement with a Nordic Mobile Operator covering Own software and managed services

Continuous improvement of business operations and ESG performance

ISO-certification for information security management (27001)
Upgraded to Gold in EcoVadis' sustainability performance rating

Key financials
Recurring revenue annualised NOK million		Net gross profit LTM2 NOK million		EBITA adjusted LTM3 NOK million 50,0
					40,0
276	301	313	367	371 339	30,0 20,0 10,0	28 8
					0,0 -10,0
					-20,0 -24
					-30,0

FY 2022 Q2 2023 Q2 2024

Q2 2022 Q2 2023 Q2 2024

FY 2022 Q2 2023 Q2 2024

-50,0

-40,0

1) Annualised recurring revenues includes revenues from own software, hardware-as-a-service and advisory and services. Reported annualized recurring revenues are based on contracts for 12 or more months and calculated as last months invoiced contractual revenues times 12 months. 2) Net gross profit is defined as Total revenue less Cost of goods sold and depreciation from Hardware-as-a-Service. Please note that the net gross profit for FY21 and FY22 have been re-stated, due to a reclassification of depreciation related to Hardware-as-a-Service 3) Adjusted earnings before interest, tax, amortisation and impairment (EBITA) is based on EBITA but adjusted for transactions of a non-recurring nature. Such non-recurring transactions include, but are not limited to restructuring costs, gains or losses related to sale of subsidiaries, acquisitionrelated costs and other non-recurring income and expenses

Key figures - Profit and loss Q2 2024

(Amounts in NOK 1 000)	Q2 2024	Q2 2023	H1 2024	H1 2023	FY 2023	Q2 y/y

1) Total Revenues	266 310	281 547	522 421	562 911	1 089 491	(5 %)
Mobile Devices & other	185 630	192 101	358 174	396 268	776 341	(3 %)
Own Software	27 513	27 839	54 846	53 958	107 483	(1 %)
Advisory & Services	53 167	61 607	109 064	112 431	205 667	(14 %)

Net gross profit 2)	84 004	95 378	170 408	185 544	353 919	(12 %)
Net gross profit margin 3)	32 %	34 %	33 %	33 %	32 %	(2 ppt)

EBITA adjusted 4)	2 623	2 348	4 208	6 404	29 892	12 %
Net profit (loss) for the period	(15 004)	(17 605)	(27 528)	(34 914)	(44 546)	15 %
EBITA adj. Margin (%)	1.0 %	0.8 %	0.8 %	1.1 %	2.7 %	0 ppt
Employees	265	275	265	275	267	(4 %)

1) Revenues Q2 2023 have been restated, as commissions and kick-back related to Devices, has been reclassified from revenues to Cost of goods sold.

2) Net gross profit is defined as Total revenue less Cost of goods sold and depreciation from Device-as-a-Service

3) Net gross profit margin is net gross profit of revenues.

4) EBITA adjusted excludes non-recurring items such as M&A and restructuring related costs of NOK 2.9 million in Q2 2024 and -0.1 million in Q2 2023

Q2 y/y revenue declined 5%

Positive development and growth in Norway and Poland offset by challenging market in Sweden
Advisory & Services affected by transactional revenues from 3rd party software which is highly fluctuating between financial periods

Net gross profit down 12% y/y

Decreased margin on DaaS affected by larger end-oflease transactions in 2023
Customer mix in the quarter negatively affecting device margins

EBITA adj. of NOK 2.6 million in Q2, seventh consecutive positive quarter

• Results from continued cost reductions

Net loss of NOK 15.0 million consist of non-cash items such as amortisation

Market performance - Revenue and Net gross profit

5% revenue growth driven by Device sales
Net gross profit decline due to increased share of sale on larger agreements and Q2 2023 positive one-off effects in DaaS

Challenging market within all revenue streams
Reorganisation of sales organisation
Improved margins on Device sales

10 Q2 2024	9 Q2 2023	7 7 Q2 2024Q2 2023
	Revenues	Net gross profit

Poland

10% growth in revenues from upselling on current partner relations
Reduced margin due to catch up of one-off costs

Net gross profit development by revenue stream

Net gross profit ¹ - last twelve months rolling

NOK million

Net gross profit LTM declined by 9% y/y due to continued decline in revenues from Device sales in 2024

Net gross profit from Device sales declined 4% ppt y/y due to increased margin pressure
Advisory & Services declined 4% y/y due to fluctuation in 3rd party software revenues
Own Software improved steadily with 4% y/y

1) Net gross profit is defined as Total revenue less Cost of goods sold and depreciation from Device-as-a-Service Please note that Advisory & Services includes 3rd party software.

Note: The net gross profit for Q2-Q3 2022 have been re-stated due to a reclassification of depreciation related to Device-as-a-Service

Transforming to recurring revenue streams

4% growth y/y in total recurring revenues in Q2 2024 within all revenue streams.

6% growth in Own Software y/y
4% increase in managed services y/y
2% growth in Device-as-a-Service y/y

Refocused commercial strategy with focus on partner agreements is expected to drive growth in recurring revenues

1) Recurring revenue for DaaS includes contracts of 24 months or more, and 12 months or more for the Advisory & Services and Own Software segments. The figures are based on the recognised recurring revenue last reporting month, annualised. Please note that Advisory & Services includes 3rd party software.

ARR own software has been restated for previous periods due to reclassification of contracts and product register.

* DaaS has been corrected due to error in the reported figures for Q2 2023. This has no effect on the financial figures.

Proforma net gross profit & EBITA adj. development

-50%

-60%

-10%

40%

-30%

-10%

10%

30%

50%

70%

NOK million

100

300

500

120

170

Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Proforma EBITA adj. Proforma net GP Proforma EBITA adj./net GP

Net gross profit, EBITA adj. and in % of net GP – LTM NOK million

Note: The net gross profit for Q1-Q4 2021 and Q1-Q3 2022 have been re-stated due to a reclassification of depreciation related to Hardware-as-a-Service

EBITA adj. of NOK 3 million in the quarter

• Continued cost optimisation efforts yielding results

Improved EBITA conversion from 2% to 8% LTM y/y

• LTM EBITA adj. stable despite declining net gross profit

Cash flow

(Amounts in NOK 1000)	Q2 2024	Q2 2023	H1 2024	H1 2023	FY 2023
EBITDA adj.	30 954	29 196	62 256	61 861	137 496
Change in working capital	(737)	5 411	(41 860)	(26 592)	33 225
Other items	233	(5 187)	(3 395)	(8 560)	(15 160)
Investments in DaaS, net of gains from returns*	(16 477)	(39 715)	(39 556)	(55 929)	(95 662)
Net cash flow from operations incl. DaaS*	13 973	(10 295)	(22 554)	(29 220)	59 898
Net cash used on investment activities, excl DaaS*	(5 800)	(7 956)	(12 519)	(18 599)	(32 852)
Net cash flow from financing activities	(11 949)	(4 578)	(26 944)	(4 089)	(12 730)
Net change in cash and cash equivalents	(3 775)	(22 830)	(62 017)	(51 908)	14 316
Cash and cash equivalents at beginning of period	19 587	34 210	77 459	61 119	61 119
Effects of exchange rate changes on cash and cash equivalents	(450)	197	(80)	2 365	2 024
Cash and cash equivalents at end of period	15 362	11 577	15 362	11 577	77 459

* In the Annual and quarterly financial statements, Investments in DaaS is included in cash flow used for investment activities according to IFRS. In this presentation, investments in DaaS is included as operating cash flow, since the cash flow represent cost related to revenues or cash inflows from DaaS in the Income statement, including working capital changes.

Operating cash flow of NOK 14 mill in Q2, improved by NOK 24 million y/y

Negative effect of change in working capital of NOK 1 million in the quarter, down NOK 6 million from last year
Underlying improvement in working capital when excluding DaaS investment effects

Continued reduction in Investments in Own Software and IT

• Reduced annual run-rate in line with development strategy

Net cash flow from financing NOK -12 million in Q2

Repayment of loans with interest, and lease commitments
Last year included draw-down of NOK 10 million on credit lines

Net cash position of NOK 15 million

• Available facilities for further liquidity

Balance sheet

(Amounts in NOK 1000)	Q2 2024	Q2 2023	FY 2023
Non-current assets	818 806	838 999	833 684
Assets related to DaaS	142 566	163 174	159 501
Total non-current assets	961 371	1 002 173	993 185
Current assets excl cash	172 000	218 532	200 155
Cash and cash equivalents	15 362	11 576	77 459
Total current assets	187 362	230 108	277 614
Total assets	1 148 733	1 232 281	1 270 799

Total Equity	547 226	569 089	573 697
Non-current interest-bearing borrowings	121 852	1 941	129 927
Other non-current liabilities	28 984	29 780	34 681
Total non-current liabilities	150 835	31 721	164 608
Current interest-bearing borrowings	45 000	188 599	48 750
Liabilities and deferred revenue related to DaaS*	169 716	199 024	186 547
Trade and other current liabilities	235 956	243 848	297 197
Total current liabilities	450 672	631 471	532 494
Total equity and liabilities	1 148 733	1 232 281	1 270 799

Equity ratio	48 %	46 %	45 %
Net interest-bearing debt	151 490	178 963	101 218
Net WC incl cash	(48 594)	(13 740)	(19 583)

• Equity ratio at 48%, up from 45% YE 2023

NIBD of NOK 151 million, up from 101 million at the end of 2023, but improved by NOK 27 million from Q1 last year
- o Total borrowings decreased with NOK 24 million y/y
Device-as-a-Service liabilities of NOK 170 million, vs. assets of NOK 142 million
- o Liabilities consists of deferred revenues and buyback liabilities

* Liabilities related to DaaS includes Nok 17 million in long term liabilities

Business update and outlook

Selected contract wins and strengthened position within public sector

New frame agreement with VOIS, the public sector purchasing agency for all municipalities in the Vestfold region (Norway) for delivery of mobile devices and related mobile technology solutions and services.

Renewed and expanded contract with Poczta Polska ("The Polish Post") of delivering a robust Mobile Device Management solution to enhance security and managed a large fleet of mobile devices used by postmen working in the field.

New frame agreement with Nordre Follo municipality (Norway) for delivery of mobile devices and related mobile technology solutions and services.

The previously announced pilot with Sykehuspartner, an expansion of the Sykehusinnkjøp agreement, is steadily progressing with expectations of launching a complete managed mobility service, including devices, lifecycle management and managed services for the entire device estate, at the turn of the year.

Re-awarded new frame agreement with Riksdagskansliet (Sweden) for delivery of mobile devices and related services.

Upsell agreement with undisclosed Norwegian energy provider for delivery of managed services and security services for their entire workforce.

Expanding our addressable market

Strong moment in our indirect channel, targeting European Mobile Service Providers and IT Service Providers in need of sustainable and cost-efficient ways to manage their customers' large device estates.

Techstep simplifies IT product supply and DaaS business with our Circular Tech Platform, offering automated, zerotouch procurement, outstanding user experience, and complete lifecycle control to boost efficiency, reduce ewaste, and increase customer satisfaction.

Circular Tech

Increased pressure on reduction of e-waste drives demand forcing MSP:s and DaaS players to ramp up their circular tech and lifecycle solutions.

Mobile Service Providers IT Service Providers

Managed Mobility Services is needed to strengthen their connectivity offering, delivering more than just voice and data.

Managed Mobility Services is needed to strengthen their Digital Workplace and DaaS (Devices as a Service) offering.

Techstep plays a vital role in accelerating the green shift, making the world work smarter with mobile and circular technology

Our sustainability pledge resonates well with customer demand and requirements…

Circularity and responsible device management

Sustainable device selection
Lifecycle management incl. solutions for track, reuse and repair
Takeback solutions incl. remanufacture and recycling
Insight to reduce carbon emissions

Robust information security framework and access control

Managed mobility solutions and expertise helping customers protecting company and employee data
Ensure compliance with laws and regulations, i.e. GDPR and NIS2

… and reflects our strong commitment to and focus on responsible and sustainable business practices

Upgraded to Gold in EcoVadis' global Sustainability ranking (Top 5% globally)

Achieved ISO certification for quality, environment and information security, solidifying Techstep's management system

Commitment to Science Based Targets for SMEs – limiting the global warming below 1.5 degrees

Outlook and Financial ambitions

2024

Recurring Revenue Annualised growth of 20-30% y/y

Net Gross Profit growth y/y of 0-5%

EBITA adj. Conversion target of 12-16%

2025

Recurring Revenue Annualised growth of +30% y/y

Net Gross Profit growth y/y of 30-40%

EBITA adj. Conversion target of +25%

We make mobile

technology work for you

Q&A

i[email protected]

Appendix

Management team

Morten Meier – Chief Executive Officer

Mr. Meier is a seasoned senior executive with more than 25 years of experience from the software and technology industry, including leadership, strategy, business development, sales, marketing, and operations. He has a proven track record of driving high performance teams and delivering profitable growth, and is passionate about driving transformation, innovation, growth and customer success. Prior to Techstep, he spent the ten past years with Microsoft Norway, where he served several positions at the leadership team, latest as Senior Director Marketing & Operations (COO) and Deputy General Manager. Previous experience includes four years of leadership positions at IBM in Norway and at a Nordic level, and almost ten years with Hewlett-Packard.

Ellen Solum – Chief Financial Officer

Mrs. Solum joined Techstep from the role as Partner in Uniconsult AS, and brings extensive experience from all finance functions, such as accounting, tax, controlling, treasury and investor relations and significant experience from change management, turn-around cased and IPO processes. She has worked in both private and publicly listed companies and has previously held positions such as CFO in TeleComputing ASA, Finance Director in Findus AS, as well as several years as management consultant and partner. Mrs. Solum holds a master's degree from University of Colorado Boulder, as well as an MBA from the Norwegian School of Economics (NHH).

.David Landerborn – Chief Operating Officer

Mr. Landerborn is an experienced executive with deep understanding of the mobile technology industry, having held several prominent positions within Techstep. This experience includes his role as Deputy Managing Director and Chief Operating Officer at Optidev AB, which Techstep acquired in 2020, and as part of Techstep's executive management team since 2022. He is passionate about strategy and operational excellence, mobile technology solutions together with a strong and winning company culture. He is actively involved in local tech initiatives in Borås, Sweden, to make sure raising Tech stars choose Techstep as their employer. Mr. Landerborn holds a bachelor's in computer science from the University of Borås.

Bartosz Leoszewski – Chief Product & 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. Mr. Leoszewski holds an MSc. in Computer Science from the Technical University of Gdansk and an Executive MBA from Rotterdam School of Management.

Sheena Lim – Chief Marketing Officer

Ms. Lim has over 22 years of international brand, marketing and communication experience in telecom, food & beverage, media and pharmaceutical and HR tech. Ms Lim came to Techstep from the position as Marketing and Communication Director at Zalaris, a provider of simplified HR and payroll administration. Previous positions include 12 years with Telenor's international operations, where she worked through change and improvement projects across all 12 markets in which Telenor was involved. 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.

Board of Directors

Michael Jacobs – Chairman of the board (since 2023)

Michael Jacobs is the Executive Vice President of the Nordics at Crayon ASA, a customer-centric innovation and IT services company. He has more than 30 years' experience from extensive management positions from several international technology companies. He previously was the CEO of Fell Tech and before that he was the CEO of Atea Norway, where he improved its business performance and lead the transformation to more value-added services. He also served as the Managing Director of Microsoft Norway and the Managing Director for the Nordics at Dell. Michael also has experience from Oracle and Telenor, both in Norway and internationally. He has a degree from California Lutheran University and continuing education from, among others, Harvard University. Melissa Mulholland - Board member (since 2021)

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.

Jens Rugseth – Board member (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.

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.

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 per 30.06.2024

Shareholder	# of shares	Ownership %
DATUM AS	5 835 198	18.45 %
KARBON INVEST AS 1	4 371 619	13.82 %
Swedbank AB	2 524 675	7.98 %
VALSET INVEST AS	1 166 136	3.69 %
AS CLIPPER	869 566	2.75 %
STEENCO AS	869 566	2.75 %
CAMIKO AS	820 683	2.59 %
VERDIPAPIRFONDET DNB SMB	649 079	2.05 %
CIPRIANO AS	599 916	1.90 %
Saxo Bank A/S	581 398	1.84 %
SPECTER INVEST AS	578 000	1.83 %
Sbakkejord AS	415 000	1.31 %
GIMLE INVEST AS	407 096	1.29 %
TIGERSTADEN AS	325 000	1.03 %
TORSTEIN INGVALD TVENGE	300 000	0.95 %
DNB Markets Aksjehandel/-analyse	273 267	0.86 %
TIGERSTADEN MARINE AS	250 000	0.79 %
NILS GABRIEL ANDRESEN	245 390	0.78 %
NORDHOLMEN AS	238 372	0.75 %
PIKA HOLDING AS	214 346	0.68 %
Total number owned by top 20	21 534 307	68.08 %
Total number of shares	31 629 381	100 %

1) Karbon Invest AS is owned by the Board member Jens Rugseth

Duo Jag AS, which is partly owned by Board member Ingrid Leisner, owns 60,157 shares in Techstep ASA Hermia AS, which is partly owned by Board member Harald Arnet, owns 63 439 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 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.