Webstep — Investor Presentation 2022

Nov 10, 2022

Q3 2022

Save Asmervik, CEO

Agenda

• 1. Highlights
• 1. Business review
• 1. Financial review
• 1. Outlook

Highlights from the quarter

Highlights

• Employees 535 employees at the end of the quarter ○ Increase of 66 employees over the last twelve months (+14.0 %)
• Revenues 193.9 MNOK for the quarter (+16.5 %) 861 MNOK for last twelve months (+15.6 %) ○ Increased revenues due to higher number of
• employees and hourly rates, but negatively affected due to lower utilization
• EBIT 5.5 MNOK for the quarter (-42.1 %) 61 MNOK for the last twelve months (+5 %) ○ EBIT is impacted by revenue effects above,
• conference attendings and culture-building activities
• EBIT below target Focus to improve profitability will continue as one of our highest priorities
• ○ Improved cost management and optimizing sales activities will improve profitability
• Changing macroeconomic environment

4

Business review

Go-to-market model

Market fundamentals

• Changing macroeconomic environment
• Increased need for team deliveries
• Webstep aligned with market trends
• Global tech vendors dominating

Digitalization of business processes

Cyber security and information security

Transformation of business models

Increased automation leveraging IoT and AI

Investing in competence

● Initium

• Young aspiring consultants
• Strategic move to access more talents
• Supplement our TaaS-deliveries
• Building competence
• In-house training
• Seminars
• External educational events
• Developer conferences in Q3 JavaZone and NDC
• Brand awareness
• Speaking opportunities
• Talent acquisition

Investing in competence

● Initium

• Young aspiring consultants
• Strategic move to access more talents
• Supplement our TaaS-deliveries
• Building competence
• In-house training
• Seminars
• External educational events
• Developer conferences in Q3 JavaZone and NDC
• Brand awareness
• Speaking opportunities
• Talent acquisition

Making fisheries more efficient and sustainable

• PingMe™ is a smart and modern solution that solves the problem of ghost fishing
• Webstep has built a cloud based solution for storing data in real time and a client application running on the edge to collect and sync data to the cloud
• Critical information about the fisheries can be distributed to stakeholders, ensuring more efficient and sustainable operations

Ocean Space Acoustics contributes to a cleaner and more sustainable ocean as well as making the fisheries more efficient and profitable through providing critical data.

Ensuring efficient rentals

• Working with Ramirent AS since 2021, and signed new agreement with Ramirent in Sweden for 2023
• Cloud based analytics platform with latest data warehouse technology, and data models for finance, supply chain management and sales analytics
• Assisted with IT architecture, advisory services and support on new online rental system

Ramirent is a leading company offering equipment rental for construction and other services, the public sector and households.

Reducing the carbon footprint in the ocean sector

• Assisting in making sure maritime companies reach their efficiency and environmental goals
• Software development related to automation of maritime electronics solutions
• Reduced climate impact and increased efficiency lowering cost for customers of SEAM

SEAM is a leading supplier of hybrid and fully electric solutions to ships and the maritime business.

Organization and employees

9

• Strong local presence
• Close to the Customer
• ○ Strategic Partner
• Improving the Webstep employee work experience
• Investing in our experts
• Company gatherings
• Facilitating collaboration and knowledge sharing
• 535 employees at the end of third quarter
• Up 28 from last quarter
• Up +66 from same quarter last year
• Ongoing strong recruitment with seasonal variations

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

Financial review

Key figures - Group

	Q3	Q3	Y/Y	YTD	YTD	Y/Y	FY
NOK million	2022	2021	change	2022	2021	change	2021
Revenues	193.9	166.5	16.5%	642.0	556.2	15.4%	775.0
EBITDA	10.7	13.2	(19.0%)	57.8	58.3	(0.9%)	81.2
EBITDA margin	5.5%	7.9%	-2.4 pts	9.0%	10.5%	-1.5 pts	10.5%
EBIT	5.5	9.5	(42.1%)	42.9	47.5	(9.7%)	65.9
EBIT margin	2.8%	5.7%	-2.9 pts	6.7%	8.5%	-1.9 pts	8.5%
Net profit	3.2	6.7	(52.2%)	30.8	35.2	(12.4%)	48.5
Net free cash flow	0.1	7.5	(98.8%)	27.5	9.3	196.8%	46.9
Earnings per share (NOK)	0.12	0.25	(52.2%)	1.13	1.31	(14.4%)	1.80
Earnings per share fully diluted (NOK)	0.12	0.24	(51.6%)	1.12	1.29	(13.5%)	1.78
Equity ratio	60.3%	61.9%	-1.5 pts	60.3%	61.9%	-1.5 pts	60.7%
Cash and cash equivalents	24.9	16.7	48.8%	24.9	16.7	48.8%	46.7
Number of employees, average (FTE)	524	459	14.2%	503	440	14.3%	449
Number of employees, end of period	535	470	14.0%	535	470	14.0%	478
Revenues per FTE (NOKt)	370	363	2.0%	1,277	1,265	1.0%	1,725
EBIT per FTE (NOKt)	10.5	20.8	(49.3%)	85.3	108.0	(21.0%)	147

• Employee growth YoY 14.0 %
• Strong revenue growth +16.5 %
• Continued double digit growth
• Lower utilization affects revenue and EBIT negatively
• EBIT
• EBIT reduced by MNOK 4
• The positive effect from higher revenue is offset by higher operating expenses, primarily related to culture-building activities and conferences

Key figures - Norway

	Q3	Q3	Y/Y	YTD	YTD	Y/Y	FY
NOK million	2022	2021	change	2022	2021	change	2021
Revenues	165.7	145.5	13.9%	551.3	479.8	14.9%	668.4
EBIT	4.3	9.8	(56.5%)	37.7	44.1	(14.5%)	61.1
EBIT margin	2.6%	6.7%	-4.2 pts	6.8%	9.2%	-2.4 pts	9.1%
Number of employees, average (FTE)	436	385	13.1%	418	372	12.5%	379
Number of employees, end of period	445	394	13.0%	445	394	13.0%	403
Number of workdays	66	66		189	188		252
Revenue breakdown
	Q3	Q3	Y/Y	YTD	YTD	Y/Y	FY
NOK million	2022	2021	change	2022	2021	change	2021
Oslo	71.3	62.0	15.1%	232.3	200.3	16.0%	281.0
Regional offices	85.0	75.5	12.7%	287.8	246.4	16.8%	343.5
Subcontractors	9.8	8.3	18.9%	32.9	34.6	(4.9%)	45.8
Other / eliminations	(0.5)	(0.2)	150.0%	(1.8)	(1.6)	12.5%	(1.9)
Total	165.7	145.5	13.9%	551.3	479.8	14.9%	668.4

• Employee growth YoY 13.0 %
• Revenue growth +13.9 %
• Strong growth but weakened by lower utilization
• EBIT decreased with -56.5 %
• Higher conference activity
• ○ Annual company gatherings
• Increase focus on profitability going forward
• Improved cost management
• Strengthening utilization
  • Enterprise segment
  • TaaS initiative
  • Cross regional activities

Key figures - Sweden

NOK million	Q3 2022	Q3 2021	Y/Y change	YTD 2022	YTD 2021	Y/Y change	FY 2021
Revenues	28.3	21.0	34.8%	90.7	76.5	18.6%	106.7
EBIT	1.2	(0.3)	561.8%	5.1	3.4	53.5%	4.8
EBIT margin	4.4%	-1.3%	5.7 pts	5.7%	4.4%	1.3 pts	4.5%
Number of employees, average (FTE)	88	73	20.5%	84	68	23.7%	70
Number of employees, end of period	91	76	19.2%	91	76	19.2%	75
Number of workdays	66	66		189	189	0.0%	253

Revenue breakdown

	Q3	Q3	Y/Y	YTD	YTD	Y/Y	FY
NOK million	2022	2021	change	2022	2021	change	2021
Regional offices	21.8	16.4	33.0%	74.1	58.8	26.0%	83.6
Subcontractors	6.5	4.6	41.1%	16.6	17.7	(6.1%)	23.1
Total	28.3	21.0	34.8%	90.7	76.5	18.6%	106.7

• Employee growth YoY +19.2 % ○ Approaching 100 employees at the end of the quarter
• Strong revenue growth +34.8 %
• Swedish segment represents 14.6 % of consolidated revenue in Q3
• Strengthened EBIT
• Higher utilization and hourly rate
• Q3 constant currency
• Revenues: +9.0 m
• EBIT: +1.8m

Outlook

Outlook

• Long term trend of digitalisation continues in a changing macroeconomic environment
• Competing for talents
• Headcount growth balanced against profitability
• Continued work on retention
• Forward capacity
• ○ Minor expectations for growth in headcount by end of Q4
• Expected increased headcount in Q1 2023
• Initiatives to increase profitability
• Optimizing sales activities
• Cost management
• Strengthening and co-ordinating enterprise initiatives
• Long term target for EBIT above 10%

Please contact us at ir@webstep.com

Appendix

A diversified customer base

Private sector

71 %

Public sector

29 %

22

Cash flow and net debt

• Q3 free cash flow of MNOK 0,1
• Capex relates to office, inventory and equipment
• Credit facility of MNOK 110 in Norway and SEK 5m in Sweden per end of quarter

Cash and cash equivalents*	(24.9)
Restricted cash	1.5
Debt to credit institutions	0.0
Net interest bearing debt (NIBD)**	(23.3)
NIBD/EBITDA (rolling 12 months)	-0.3
NIBD/EBITDA (rolling 12 months)	0.4
Including IFRS 16 Lease liabilities

Top 20 shareholders at 4 November 2022

Shareholder name	Shares	$\%$
1 EMBRO EIENDOM AS	8,218,070	29.9%
2 J.P. Morgan SE	1,970,890		7.2% Nominee
3 VERDIPAPIRFONDET ALFRED BERG GAMBA	1,556,645	5.7%
4 SALT VALUE AS	1,430,121	5.2%
5 VERDIPAPIRFONDET DNB SMB	1,141,834	4.2%
6 JAKOB HATTELAND HOLDING AS	1,000,000	3.6%
7 J.P. Morgan SE	900,000		3.3% Nominee
8 HOLMEN SPESIALFOND	703,053	2.6%
9 VERDIPAPIRFONDET NORDEA NORGE VERD	664,317	2.4%
10 Danske Invest Norge Vekst	542,000	2.0%
11 Goldman Sachs International	416,571		1.5% Nominee
12 INTERTRADE SHIPPING AS	400,000	1.5%
13 HAUSTA INVESTOR AS	393,500	1.4%
14 Danske Bank A/S	320,000		1.2% Nominee
15 ESPEDAL & CO AS	308,980	1.1%
16 IVAR LØGE AS	250,000	0.9%
17 Pictet & Cie (Europe) S.A.	232,675		0.8% Nominee
18 VERDIPAPIRFONDET NORDEA AVKASTNING	225,383	0.8%
19 MP PENSJON PK	224,000	0.8%
20 EUROVEST AS	200,000	0.7%
Top 20 shareholders	21,098,039	76.8%
Other	6,363,609	23.2%
Total share outstanding	27,461,648	100.0%

24

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.