Webstep

Investor Presentation • May 27, 2020

First Quarter Results 2020

Webstep ASA Oslo | 27 May 2020

Arne Norheim (CEO) Liv Annike Kverneland (CFO)

1. Q1 Highlights

• 1. Business Review
• 1. Financial Review

4. Outlook

Q1 HIGHLIGHTS

• o Revenues of NOK 183.0 million (NOK 184.4 million). The COVID-19 outbreak had an estimated negative effect on revenues of at least NOK 3 million
• o EBIT of NOK 13.1 million (NOK 20.2 million)
• o Positive development in Sweden with revenue increase of 14.0% (constant currency) and EBIT margin of 8.9% (2.7%)
• o Investments in Webstep Solutions have started to yield results
• o The Webstep employees have shown a remarkable ability to keep up the service level to the customers throughout the lock-down period

• o The board of directors will await further developments before potentially deciding to resolve a dividend for the financial year 2019

• 1. Q1 Highlights
• 2. Business Review
• 1. Financial Review
• 1. Outlook

Business Review Investing for growth

Expert Services Solutions

• o Expert services growing in all regional offices
• o Stabilized capital regions (Oslo and Stockholm)

• o Recruiting capacity in place across all regions

• o Investments in Solutions as new growth engine for Webstep

• NOK 3.6 million in Q1 costs
• o Product development
• Analytic Tool for population information for municipality
  • ✓ First agreement signed -> Recurring revenues
• Climate Portal for municipality
  • ✓ First agreement signed -> Recurring revenues
• Control Platform for "Smart buildings"
  • ✓ Partnership with GK in place

Strategic partnership with GK

• o GK is Scandinavia's leading end -to -end technical facility manager and contractor
• o Webstep will collaborate with GK to develop a building management solution that can visualize data from related systems
• o The solutions will allow for various data flows to be merged in order to gain new insights
• o Customer value provided from solutions developed:
• Improved resource management
• Process automation and increased control
• Lower maintenance costs

Business Review A diversified customer base

Top 10 customers represent 30.2% of total revenues – up from 29.5% in Q1 2019

Customer cases showing innovative utilisation of technology

Norwegian Air Shuttle works to make air transportation more affordable

• o Trusted advisor to Norwegian
• o Working to support the IT transformation processes and develop the cloud infrastructure platform
• o Webstep consultants remain engaged to keep critical IT systems running during the COVID-19 situation

Larvik is a Norwegian municipality and regional entity with about 50K inhabitants

• o Webstep has been asked to develop an automated reporting system to visualize key population metrics and changes in demography
• o End-to-end project that will result in a data analytics platform and a digital dashboard to get improved insights
• o Solution will be hosted on a cloud platform and made available for other municipalities during autumn 2020

Customer cases showing innovative utilisation of technology

Norgeshus delivers pre-manufactured houses and buildings

• o Webstep has delivered an award-winning cloud-based sales and project management tool for their 120+ partners
• o To allow for more efficient transactions Webstep has created a digital signature solution where documents can be signed electronically
• o Full access and integration with an external repository for digital contracts speeding up the sales process

Björn Lundén delivers software solutions and services

• o Webstep working on a digitalization project integrating 10.000 SQL databases and using cutting edge technology
• o Objective is to create an AI-based advisor that can improve resource management and give a better overview of ongoing activities

Organization and operations

• o 417 employees at the end of Q1 2020
• Up 8 from year-end 2019
• Up 16 last 12 months
• o Average number of employees in the quarter up 3% from Q1 2019
• o Capital regions employee churn stabilized
• o COVID-19 status
• Decentralized model worked well to support both employees and customers during the lockdown
• Remarkable ability among consultants to keep up the service level to customers
• Increased used of collab tools and video conferencing
• Tight follow-up and providing security for our employees
• No lay-offs or furloughs deployed

Note: Numbers in parentheses refer to year-over-year growth in number of employees. *Uppsala and Sundsvall were established in 2019 and four employees were transferred from Stockholm to Uppsala and Sundsvall.

• 1. Q1 Highlights
• 1. Business Review
• 3. Financial Review
• 1. Outlook

Key Figures Financial Review

	Q1	Q1	Y/Y %	FY
NOK million	2020	2019	growth	2019
Sales revenues	183.0	184.4	(0.8%)	660.5
EBITDA	16.5	22.3	(26.1%)	60.4
EBITDA margin	9.0%	12.1%		9.1%
EBIT	13.1	20.2	(35.1%)	49.1
EBIT margin	7.1%	10.9%		7.4%
Net profit	9.6	15.4	(37.9%)	36.1
Net cash flow	13.7	(7.9)	272.8%	(8.0)
Earnings per share (NOK)	0.36	0.58	(0.39)	1.36
Earnings per share. fully diluted (NOK)	0.36	0.58	(0.38)	1.36
Equity ratio	64.8%	66.4%		65.7%
Cash and cash equivalents	39.1	25.6		25.5
Number of employees, average (FTE)	410	399	2.8%	397
Number of employees, end of period	417	401	4.0%	409
EBITDA per average employee (NOK thousand)	40.3	56.0	(28.1%)	152.2
EBIT per average employee (NOK thousand)	32.0	50.7	(36.9%)	132.8

o	Revenue of NOK 183.0 million, 0.8 per cent decrease year-on-year
	− Revenues from own consultants increased by NOK 1.3 million
	− Revenues from subcontractors decreased by NOK 2.7 million
	− COVID-19 impact of at least NOK 3 million
o	EBIT of NOK 13.1 million, 35.1% per cent decrease year-on-year
	− Decrease in EBIT mainly driven by COVID-19, net cost effect of Webstep Solutions (NOK 3.1 million) and increased lease costs (NOK 1 million)
o	Total equity of NOK 389.3 million (389.1 million)
o	Cash flow from operations of NOK 17.2 million

(negative NOK 6.4 million)

Norway Financial Review

NOK million	Q1 2020	Q1 2019	Y/Y % growth	FY 2019
Sales revenues	155.4	161.6	(3.8%)	570.3
EBIT	10.6	19.6	(45.9%)	46.7
EBIT margin	6.8%	12.1%		8.2%
Number of employees, average (FTE)	346	339	2.1%	337
Number of employees, end of period	354	341	3.8%	346
Number of work days, Norway (excl. vacation)	64	63		249
EBIT per average employee (NOK thousand)	30.6	57.8	(47.0%)	138.6

Revenue breakdown

	Q1	Q1	Y/Y %
NOK million	2020	2019	growth
Oslo	70.1	90.1	(22.2%)
Regional offices	84.8	71.5	18.5%
Solutions	0.5	-	100.0%
Total	155.4	161.6	(3.8%)

Q1 Highlights o Norway accounts for 84.9 per cent of consolidated revenues o Revenue of NOK 155.4 million, 3.8 per cent decrease year-on-year − COVID-19 impact (at least NOK 3 million)

• − Revenue growth in regional offices of 18.5 per cent, revenue decrease in Oslo of 22.2 per cent. Oslo accounts for 45.1 per cent of revenues in Norway
• o EBIT of NOK 10.6 million, 45.9 per cent decrease year-on-year
• − Decrease in EBIT mainly driven by COVID-19, net cost effect of Webstep Solutions (NOK 3.1 million) and increased lease costs (NOK 1 million)

Sweden Financial Review

NOK million	Q1 2020	Q1 2019	Y/Y % growth	FY 2019
Sales revenues	27.6	22.8	21.3%	90.2
EBIT	2.5	0.6	310.0%	2.4
EBIT margin	8.9%	2.7%		2.7%
Number of employees, average (FTE)	64	60	6.7%	61
Number of employees, end of period	64	60	6.7%	63
Number of work days, Norway (excl. vacation)	63	63		251
EBIT per average employee (NOK thousand)	38.4	10.0	284.4%	39.3

Q1 Highlights o Sweden accounts for 15.1 per cent of consolidated revenues

o Revenue of NOK 27.6 million, 21.3 per cent growth year-on-year

− Increase in revenues mainly driven by more employees, higher utilization, increased revenues from subcontractors and a positive currency effect

• − Adjusted for FX fluctuation, revenues grew by 14.0 per cent year-on-year
• o EBIT of NOK 2.5 million, up from NOK 0.6 million in Q1 2019

Cash Flow and Net Debt position Financial Review

• o Operating cash flows mainly affected by change in trade receivables and reduced profit
• o Capex relates to office equipment and upgrading
• o Total lease liabilities of NOK 28.3 million, comprise of office rentals and company cars in Sweden (not included in NIBD)
• o Liquidity reserve of NOK 110 million in Norway and SEK 3 million in Sweden per end of quarter

NOK million	31 Mar 2020
Cash and cash equivalents* Restricted cash	(39.1) 0.5
Debt to credit institutions	-
Net interest bearing debt (NIBD)	(38.7)
NIBD/EBITDA (rolling 12 months)	(0.71)

*Negative indicates positive amount

• 1. Q1 Highlights
• 1. Business Review
• 1. Financial Review

4. Outlook

Financial Review Outlook

• o Difficult to predict the impact of COVID-19 going forward
• The crisis creates both opportunities and threats
• Digitization has become even more relevant as a consequence of the social distancing
• Available production hours affected by closed schools and kindergartens in Norway in Q2
• Although the market has slowed down, there is still a demand for IT expert consultants
• o Recruitment:
• Webstep has continued to carefully recruit new employees throughout the COVID-19 lock-down period, but the recruitment activities have slowed down
• Headcount is expected to decrease slightly in the second quarter compared to the first quarter, but the average number of employees is expected to be higher than the second quarter of 2019

APPENDIX

Top 20 shareholders at 18 May 2020 Appendix

Shareholder name	Shares	%	Type	Country
EMBRO EIENDOM AS	7,608,735	28.2%	Ordinary	Norway
Virtus KAR International Small-Cap	3,119,279	11.6%	Ordinary	United States
VERDIPAPIRFONDET ALFRED BERG GAMBA	1,556,645	5.8%	Ordinary	Sweden
JAKOB HATTELAND HOLDING AS	1,000,000	3.7%	Ordinary	Norway
PARK LANE FAMILY OFFICE AS	905,581	3.4%	Ordinary	Norway
Goldman Sachs International	783,058	2.9%	Nominee	United Kingdom
VERDIPAPIRFONDET NORDEA NORGE VERD	685,000	2.5%	Ordinary	United Kingdom
Danske Invest Norge Vekst	542,000	2.0%	Ordinary	Norway
SALT VALUE AS	508,291	1.9%	Ordinary	Norway
Citibank, N.A.	488,491	1.8%	Nominee	Ireland
AMG RENAISSANCE INTL EQ FD	415,000	1.5%	Ordinary	United States
NWT MEDIA AS	390,000	1.4%	Ordinary	Norway
VIOLA AS	380,000	1.4%	Ordinary	Norway
DnB NOR Bank ASA	334,943	1.2%	Ordinary	Norway
J.P. Morgan Bank Luxembourg S.A.	334,292	1.2%	Nominee	United Kingdom
Taaleri Nordic Value Equity Fund	320,000	1.2%	Ordinary	Norway
WEBSTEP ASA	293,633	1.1%	Ordinary	Norway
VIRTUS TACTICAL ALLOCATION FUND	282,917	1.0%	Ordinary	United States
EMPLOYEES RETIR SYSTEM OF TEXAS	225,741	0.8%	Ordinary	United States
VERDIPAPIRFONDET NORDEA AVKASTNING	225,383	0.8%	Ordinary	United Kingdom
Top 20 shareholders	20,398,989	75.6%
Other	6,568,028	24.4%
Total share outstanding	26,967,017	100.0%

Disclaimer

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Webstep ASA and Webstep ASA's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Webstep ASA. Although Webstep ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Webstep ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Webstep ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.