Webstep — Investor Presentation 2021

Oct 28, 2021

Q3 2021

Webstep ASA Oslo | 28 October 2021

Save Asmervik, CEO

Agenda

• 1. Q3 highlights
• 2. Business review
• 3. Financial review
• 4. Outlook

Highlights from the quarter

Q3 highlights

• Revenues increased by 13.9 percent to NOK 166.5 million
• EBIT increased by 1.9 percent to NOK 9.5 million influenced by non-recurring cost of NOK 2 million
• 470 employees at the end of the quarter, up by 31 from the previous quarter and up 54 last twelve months

4

Business review

Go-to-market model

WEBSTEP DELIVERY MODEL CUSTOMER

A diversified customer base

Making car charging easy and accessible

• Constructing a scalable platform to handle business processes and management tools needed to run a powerful chain of charging facilities
• Developers from Webstep working on booking system, integration with CRM and ERP systems as well as designing new webpages.

Ladeklar builds car charging facilities through the use of software solutions. The company is owned by BKK (Eviny) and Hafslund Eco, both working in the renewable industry.

Making data pipelines accessible and easy to use

• Webstep developing an advanced API solution based on Kafka Connect and new technology
• Solution delivered through a team-as-a-service delivery, covering both project management, solution architecture and development
• Simplified IT integration and a more effective way of handling everyday tasks for the end-users

Björn Lundén is a knowledge and software company that has been simplifying everyday life for small and medium-sized companies for more than 30 years.

Empowering people to live longer and better lives

• Webstep is playing a key role in designing, building and maintaining AI-assisted applications
• Enhancing the user experience and making sure their IT solutions scale fast
• Developing tools to structure and harmonize information in text files to generate new insights

PubGene was founded in response to a clear demand for products that organize information for life sciences. The company is enabling personalised medicine through developing bioinformatics solutions.

Organization and employees

• Strong local presence
  • ○ Close to the Customer
  • ○ Strategic Partner
• Building Competence
  • ○ High quality competence events
  • ○ Investing in the experts
• 470 employees at the end of third quarter

Note: Numbers in parentheses refer to year-over-year growth in number of employees.

Community involvement

• Participating at Arendalsuka
• Editorials focusing on key societal challenges
• Awareness campaign promoting the role of IT consultants
• Promoting the tech industry to college girls
• Press coverage involving a security expert from Webstep

Financial review

FINANCIAL REVIEW

Key figures - Group

	Q3	Q3	Y/Y	YTD	YTD	Y/Y	FY
NOK million	2021	2020	change	2021	2020	change	2020
Revenues	166.5	146.2	13.9%	556.2	501.6	10.9%	690.0
EBITDA	13.2	12.9	2.1%	58.3	49.6	17.5%	63.9
EBITDA margin	7.9%	8.8%	-0.9 pts	10.5%	9.9%	0.6 pts	9.3%
EBIT	9.5	9.3	1.9%	47.5	39.1	21.5%	50.0
EBIT margin	5.7%	6.4%	-0.7 pts	8.5%	7.8%	0.7 pts	7.2%
Net profit	6.7	6.8	-1.4%	35.2	31.5	11.8%	36.7
Net free cash flow	7.5	4.7	60.9%	9.3	33.7	(72.5%)	59.4
Earnings per share (NOK)	0.25	0.25	(2.7%)	1.31	1.08	20.4%	1.38
Earnings per share. fully diluted (NOK)	0.24	0.25	(3.9%)	1.29	1.08	19.2%	1.38
Equity ratio	61.9%	68.3%	-6.5 pts	61.9%	68.3%	-6.5 pts	64.3%
Cash and cash equivalents	16.7	53.3	(68.7%)	16.7	53.3	(68.7%)	39.7
Number of employees, average (FTE)	459	415	10.6%	440	412	6.7%	410
Number of employees, end of period	470	416	12.9%	470	416	12.9%	415
Revenues per FTE (NOKt)	363	353	3.0%	1,265	1,217	3.9%	1,683
EBIT per FTE (NOKt)	20.8	22.7	(8.4%)	108.0	94.9	13.8%	122

Q3 highlights

● Revenue growth from own consultants and less use of subcontractors

● Other factors influencing EBIT

• Non-recurring cost NOK 2 million
• Culture building activities
• Onboarding of new consultants
• Strong foundation for growth

14 *Change in provision method for fixed salary holiday pay: Consolidated figures as if Q2 2020 include ordinary salary costs for employees with a base salary and complete reversal in Q3 2020. Please see the report - Note 7.

FINANCIAL REVIEW

Key figures - Norway

	Q3	Q3	Y/Y	YTD	YTD	Y/Y	FY
NOK million	2021	2020	change	2021	2020	change	2020
Revenues	145.5	124.3	17.0%	479.8	425.4	12.8%	583.9
EBIT	9.8	8.3	18.4%	44.1	32.8	34.7%	41.6
EBIT margin	6.7%	6.7%	0.1 pts	9.2%	7.7%	1.5 pts	7.1%
Number of employees, average (FTE)	385.2	350.8	9.8%	372	350	6.3%	348
Number of employees, end of period	393.5	355.0	10.8%	394	357	10.2%	352
Number of workdays	66	66		188	189		252
Revenue breakdown
	Q3	Q3	Y/Y	YTD	YTD	Y/Y	FY
NOK million	2021	2020*	change	2021	2020	change	2020
Oslo	62.0	46.7	32.7%	200.3	156.8	27.7%	219.8
Regional offices	75.5	67.5	11.8%	246.4	230.1	7.1%	312.5
Subcontractors	8.3	11.6	(28.9%)	34.6	41.4	(16.4%)	54.0
Other / eliminations	(0.2)	(1.5)	(84.3%)	(1.6)	(3.0)	(47.6%)	(2.4)
Total	145.5	124.3	17.0%	479.8	425.4	12.8%	583.9

Q3 highlights

• Norwegian segment represents 87% of consolidated revenue
• Continued strong revenue growth
• EBIT impacted by
  • Onboarding of consultants
  • Culture building activities
  • Non-recurring items NOK 2 million
    • Write off fixed price projects
    • External services related to organizational development
• New office locations

15 *Change in provision method for fixed salary holiday pay: Consolidated figures as if Q2 2020 include ordinary salary costs for employees with a base salary and complete reversal in Q3 2020. Please see the report - Note 7.

FINANCIAL REVIEW

Key figures - Sweden

	Q3	Q3	Y/Y	YTD	YTD	Y/Y	FY
NOK million	2021	2020	change	2021	2020	change	2020
Revenues	21.0	21.8	(3.8%)	76.5	76.2	0.4%	106.1
EBIT	(0.3)	1.0	(126.3%)	3.4	6.3	(46.7%)	8.4
EBIT margin	(1.9%)	4.7%	-6.6 pts	4.0%	8.2%	-4.2 pts	7.9%
Number of employees, average (FTE)	73	62	18.2%	68	63	7.6%	63
Number of employees, end of period	76	61	24.6%	76	61	24.6%	63
Number of workdays	66	66		189	189		252

Q3 highlights

• Swedish segment represents 13% of consolidated revenue in Q3
• EBIT impacted by:
  • Significant growth in employees - related onboarding processes
• Strengthened position for revenue growth and profitability

Cash flow and net debt

Q3 highlights

• Q3 free cash flow of NOK 7.5m
• Operating cash flow increased from NOK 5.7m in Q3-20 to NOK 9.3m in Q3-21
• Capex relates to office equipment
• Credit facility of NOK 110m in Norway and SEK 5m in Sweden per end of quarter

	30 Sept
NOK million	2021
Cash and cash equivalents*	(16.7)
Restricted cash	1.7
Debt to credit institutions	13.1
Leasing liabilities	44.5
Net interest bearing debt (NIBD)	42.6
NIBD/EBITDA (rolling 12 months)	0.59

Outlook

Outlook

• Positive market outlook
  • ○ High demand for Webstep services and consultants securing assignments for employees onboarded in Q3.
• Continued growth
  • ○ Expect to be 475 employees by the end of Q4
• Main focus
  • ○ Organic growth in existing locations
  • ○ M&A may be utilized as a strategic tool to access new customer relations or new expertise

Questions?

Please contact us at ir@webstep.com

Appendix

APPENDIX

Top 20 shareholders at 21 October 2021

Shareholder name	Shares	%
EMBRO EIENDOM AS	8,159,382	30.1%
VERDIPAPIRFONDET ALFRED BERG GAMBA	1,556,645	5.7%
SALT VALUE AS	1,157,687	4.3%
J.P. Morgan Bank Luxembourg S.A.	1,041,345	3.8%	Nominee
JAKOB HATTELAND HOLDING AS	1,000,000	3.7%
VERDIPAPIRFONDET DNB SMB	936,086	3.5%
J.P. Morgan Bank Luxembourg S.A.	900,000	3.3%	Nominee
HOLMEN SPESIALFOND	699,576	2.6%
VERDIPAPIRFONDET NORDEA NORGE VERD	664,317	2.5%
Danske Invest Norge Vekst	542,000	2.0%
Goldman Sachs International	416,571	1.5%	Nominee
INTERTRADE SHIPPING AS	400,000	1.5%
PARK LANE FAMILY OFFICE AS	343,758	1.3%
KRB CAPITAL AS	339,964	1.3%
Citibank, N.A.	320,000	1.2%	Nominee
BLUEBERRY CAPITAL AS	317,007	1.2%
HAUSTA INVESTOR AS	300,000	1.1%
ESPEDAL & CO AS	255,560	0.9%
IVAR LØGE AS	250,000	0.9%
VERDIPAPIRFONDET NORDEA AVKASTNING	225,383	0.8%
Top 20 shareholders	19,825,281	73.2%
Other	7,264,824	26.8%
Total share outstanding	27,090,105	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.