Techstep ASA — Report Publication Announcement 2020

Nov 6, 2020

Techstep ASA: Q3 2020 results

Techstep ASA: Q3 2020 results

Highlights Q3 2020

· Gross profit was NOK 71 million, up from NOK 60 million last year

· EBITDA adjusted was NOK 16 million, up from NOK 6 million

· Annual Recurring Revenue (ARR) was NOK 38 million with 209,000 end-users at

the end of the quarter

· Signed five new contracts for Techstep's software-based managed mobility

service 'Flow', with an estimated value of NOK 43 million

· Strengthened position within managed mobility services through the

acquisition of Optidev AB

· Digital transformation speeding up - mobility market fundamentals

strengthening further

Note: Optidev AB is not consolidated in Techstep's Q3 2020 results

Techstep announced on 3 September 2020 a binding agreement to acquire 100% of

the shares in Optidev AB and completed the transaction 1 October 2020. Optidev

AB is not consolidated in Techstep's Q3 2020 reporting. On a proforma basis

combining Techstep and Optidev AB results, third quarter gross profit was NOK 99

million, EBITDA adjusted was NOK 27 million and the Annual Recurring Revenue

(ARR) is 60 million.

Commenting on the Q3 report, Jens Haviken, CEO of Techstep says:

"The world is going mobile and the ongoing pandemic speeds up the transformation

and changes the way we move, interact and work. Although the market environment

is challenging - with lower demand for hardware and traditional services - we

see a positive development in our managed mobility services offering. Our 'Flow'

concept has been well received in Sweden, and three of the five new Flow

contracts signed in the quarter were with Swedish customers.

Our ambition is to become the leading managed mobility service provider in the

Nordics, based on our own software and IP. The acquisition of the B2B mobility

software and solutions provider Optidev marks a major step on this journey.

While still in the early stages, we have high hopes for the roll-out of our

managed mobility services across the Nordic market.

Our opportunity pipeline is promising, although we see continued uncertainties

in the overall market as we move towards the end of 2020. Our main focus remains

the development of our managed mobility services platform, and continued

onboarding of new and existing customers will be top priority. We are working

hard to improving both the customer experience and our operational efficiency to

ensure that we succeed. Techstep is all set for making work mobile to society,

people and organizations".

Material

Please find the report and presentation for Q3 2020 enclosed.

Presentation and audiocast:

Due to the COVID-19 situation and the government's recommendation to limit

physical meetings, the presentation will be held as an audiocast with slideshare

only. The presentation will be given in English by CEO Jens Haviken and CFO

Marius Drefvelin today at 10:00 am CET.

Please join the Q3 2020 results presentation via the following link:

https://techstep.eventcdn.net/2020q3/  (https://www.google.com/url?q=https://tech

step.eventcdn.net/2020q3/&sa=D&source=calendar&ust=1604261760621000&usg=AOvVaw0hc

PKbDi0-b0t-iUY4eVla)

A recorded version of the presentation will be made available on

www.techstepasa.no shortly after the broadcast has been concluded.

For more information:

Jens Haviken, CEO, Techstep ASA: +47 930 90 070

Marius Drefvelin, CFO, Techstep ASA: +47 958 95 690

About Techstep ASA

Techstep is purpose-built to become a leading Managed Mobility Services provider

in the Nordics. Techstep combines device management, software, hardware and

connectivity into a managed service. This enables enterprises and their

employees to do their work across mobile devices and locations, with a high

degree of security and operational stability. Techstep has 290 employees based

in Norway, Sweden and Denmark, serving close to 4,000 customers across various

industries in the private and public sectors. The company is listed on the Oslo

Stock Exchange. For more information, see www.techstepasa.no.