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Webstep Investor Presentation 2023
3788_rns_2023-08-23_7c8de728-484a-4b52-a9a6-97245198a428.pdf
Investor Presentation
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Our agenda
Highlights from the quarter
Highlights
Solid development despite changing market conditions
- Strong revenue growth
- 249.5 MNOK (+16.0%) for the quarter
- 526.7 MNOK (+17.5%) YTD
- Solid EBIT
- EBIT 17.6 MNOK (+30.8%) for the quarter
- ○ 42.8 MNOK (+14.7%) YTD
- ○ EBIT margin 7.1% (+0.8 pp) for the quarter
- Growth in employees
- ○ 561 (+10.5%) employees at the end of second quarter
- ○ The growth in number of employees has ensured increased capacity fueling several of Webstep's team deliveries and strengthened ability to deliver on the Group's ambitions in the enterprise market
Business review
Organization and employees
- ● Strong local presence
- Close to the customer
- Long term customer relationships
- ● High-end employee work experience
- Experts meet experts
- Strong competence track record
- ● Strong and proud culture
- Employee Satisfaction- and Loyalty Indexes on premium levels
- Competence development activities systematically addressed
- ● 561 employees at the end of Q2 2023
- Recruitment balanced against profitable growth
- Experienced employees key to utilisation
Note: Numbers in parentheses refer to year-over-year growth in number of employees.
Financial review
Key figures - Group
| Q2 | Q2 | Y/Y | YTD | YTD | Y/Y | FY | |
|---|---|---|---|---|---|---|---|
| NOK million | 2023 | 2022 | change | 2023 | 2022 | change | 2022 |
| Revenues | 249.5 | 215.1 | 16.0% | 526.7 | 448.1 | 17.5% | 888.4 |
| EBITDA | 23.0 | 18.4 | 25.3% | 53.5 | 47.1 | 13.6% | 76.2 |
| EBITDA margin | 9.2% | 8.5% | 0.7 pts | 10.2% | 10.5% | (-0.3 pts) | 8.6% |
| EBIT | 17.6 | 13.5 | 30.8% | 42.8 | 37.4 | 14.7% | 54.6 |
| EBIT margin | 7.1% | 6.3% | 0.8 pts | 8.1% | 8.3% | (-0.2 pts) | 6.2% |
| Net profit | 12.8 | 9.8 | 30.0% | 31.5 | 27.6 | 14.0% | 38.4 |
| Net free cash flow | 6.3 | 6.9 | (9.7%) | 22.5 | 27.5 | (18.0%) | 63.3 |
| Earnings per share (NOK) | 0.46 | 0.36 | 28.7% | 1.14 | 1.01 | 11.8% | 1.40 |
| Earnings per share fully diluted (NOK) | 0.46 | 0.35 | 28.8% | 1.13 | 1.00 | 13.2% | 1.39 |
| Equity ratio | 54.9% | 58.9% | (4 pts) | 54.9% | 58.9% | (-4 pts) | 57.9% |
| Cash and cash equivalents | 33.4 | 26.8 | 24.6% | 33.4 | 26.8 | 24.6% | 62.3 |
| Number of employees, average (FTE) | 559 | 503 | 11.1% | 557 | 492 | 13.2% | 512 |
| Number of employees, end of period | 561 | 507 | 10.5% | 561 | 507 | 10.5% | 538 |
| Revenues per FTE (NOKt) | 447 | 428 | 4.4% | 946 | 911 | 3.9% | 1,736 |
| EBIT per FTE (NOKt) | 31.5 | 26.8 | 17.7% | 76.9 | 75.9 | 1.3% | 106.8 |
Q2 Comments
- Continued growth in revenues and strengthened EBIT confirms the robustness of Webstep's business model
- Norway is the largest segment, accounting for 85% of the consolidated revenues in the quarter
Norway
Key figures - Norway
| Q2 | Q2 | Y/Y | YTD | YTD | Y/Y | FY | |
|---|---|---|---|---|---|---|---|
| NOK million | 2023 | 2022 | change | 2023 | 2022 | change | 2022 |
| Revenues | 211.7 | 183.5 | 15.4% | 449.3 | 385.7 | 16.5% | 761.6 |
| EBIT | 16.5 | 12.6 | 31.2% | 38.9 | 33.5 | 16.2% | 47.7 |
| EBIT margin | 7.8% | 6.9% | 0.9 pts | 8.7% | 8.7% | (0 pts) | 6.3% |
| Number of employees, average (FTE) | 457 | 419 | 9.1% | 455 | 410 | 11.0% | 425 |
| Number of employees, end of period | 459 | 422 | 8.8% | 459 | 422 | 8.8% | 444 |
| Number of workdays | 58 | 59 | (1.7%) | 123 | 123 | 0.0% | 253 |
| Revenues per FTE (NOKt) | 463 | 438 | 5.8% | 988 | 942 | 4.8% | 1,795 |
| EBIT per FTE (NOKt) | 36 | 30 | 20.3% | 86 | 82 | 4.2% | 114 |
| Revenue breakdown | |||||||
| Q2 | Q2 | Y/Y | YTD | YTD | Y/Y | FY | |
| NOK million | 2023 | 2022 | change | 2023 | 2022 | change | 2022 |
| Oslo | 90.7 | 76.1 | 19.2% | 190.9 | 161.0 | 18.6% | 324.7 |
| Regional offices | 105.9 | 96.9 | 9.3% | 225.8 | 202.8 | 11.4% | 393.7 |
| Subcontractors/resale of licenses | 15.9 | 11.3 | 41.3% | 34.3 | 23.1 | 48.7% | 45.7 |
Q2 Comments
- Solid revenue growth despite tougher market conditions
- Revenue from own consultants 196.6 MNOK (+13.7%) primarily driven by increased headcount and hourly rates
- Change in revenues from subcontractors/resale of licenses is mainly due to internal change in accounting. Revenue from subcontractors isolated change + 1.4 MNOK Q2, +6.4 MNOK YTD
- Improved EBIT for the quarter due to increased revenues and normalised cost level for the second quarter
- Employee growth of 37 employees
Sweden
Key figures - Sweden
| Q2 | Q2 | Y/Y | YTD | YTD | Y/Y | FY | |
|---|---|---|---|---|---|---|---|
| NOK million | 2023 | 2022 | change | 2023 | 2022 | change | 2022 |
| Revenues | 37.9 | 31.6 | 19.8% | 77.4 | 62.4 | 24.0% | 126.9 |
| EBIT | 1.1 | 0.9 | 25.0% | 3.9 | 3.9 | 1.1% | 6.9 |
| EBIT margin | 3.0% | 2.8% | 0.1 pts | 5.1% | 6.2% | (-1.2 pts) | 5.5% |
| Number of employees, average (FTE) | 102 | 84 | 21.6% | 102 | 82 | 24.7% | 86 |
| Number of employees, end of period | 102 | 86 | 18.7% | 102 | 86 | 18.7% | 102 |
| Number of workdays | 59 | 60 | (1.7%) | 123 | 123 | 0.0% | 253 |
| Revenues per FTE (NOKt) | 372 | 377 | (1.5%) | 759 | 764 | (0.6%) | 1,469 |
| EBIT per FTE (NOKt) | 11 | 11 | 2.8% | 39 | 48 | (20.1%) | 81 |
| Revenue breakdown | |||||||
| Q2 | Q2 | Y/Y | YTD | YTD | Y/Y | FY | |
| NOK million | 2023 | 2022 | change | 2023 | 2022 | change | 2022 |
| Regional offices | 30.0 | 26.1 | 14.8% | 62.0 | 52.3 | 18.5% | 103.0 |
| Subcontractors | 7.9 | 5.5 | 43.3% | 15.4 | 10.1 | 52.4% | 23.9 |
Q2 Comments
- A continuously weakened market
- Revenue growth
- Revenue from own consultants MNOK 30.0 +14.8% stands for most of the growth, driven by increased headcount
- Lower market demand results in weaker utilisation
- Increased use of subcontractors relates to services outside of core competencies
-
Stable EBIT
- Marginal change in EBIT despite strong growth in number of employees - related to reduction in utilisation
-
Q2 2023 constant currency
- Revenues: + 4.0m
- EBIT: +0.1m
Outlook
Outlook
Market
- Long term trend of digitalisation continues in a changing macroeconomic environment
- AI development creates new opportunities which align well with Webstep's services
- Webstep has a strong position in the market with a robust business model and a diversified customer base which gives adaptive capabilities
Path towards further sustainable growth and profits
- Headcount growth balanced against profitability and continued focus on cost saving to secure margin expansion
- Expect to be approximately 564 employees by the end of third quarter 2023
- Optimizing sales and strengthening focus on enterprise market
- Long term target for EBIT above 10%
Please contact us at [email protected]
Appendix
A diversified customer base
Cash flow and net debt
| 30 Jun | |
|---|---|
| NOK million | 2023 |
| Cash and cash equivalents* | (33.4) |
| Restricted cash | 2.4 |
| Debt to credit institutions | 0.0 |
| Net interest bearing debt (NIBD)** | (31.0) |
| NIBD/EBITDA (rolling 12 months) | (0.4) |
| NIBD/EBITDA (rolling 12 months) | 0.6 |
| Including IFRS 16 Lease liabilities | |
- Q2 free cash flow of MNOK 6.3
- Capex relates to office and equipment
● Credit facility of MNOK 110 in Norway and SEK 5m in Sweden per end of quarter
Revenue, EBIT and employee development
EBIT (LTM) Revenues (LTM)
Top 20 shareholders at 21 August 2023
| Shareholder name | Shares | % | ||
|---|---|---|---|---|
| 1 EMBRO EIENDOM AS | 8,312,727 | 30.0% | ||
| 2 J.P. Morgan SE | 1,970,890 | 7.1% Nominee | ||
| 3 HVALER INVEST AS | 1,735,018 | 6.3% | ||
| 4 SALT VALUE AS | 1,535,258 | 5.5% | ||
| 5 VPF FONDSFINANS UTBYTTE | 1,060,000 | 3.8% | ||
| 6 JAKOB HATTELAND HOLDING AS | 1,000,000 | 3.6% | ||
| / | J.P. Morgan SE | 900,000 | 3.3% Nominee | |
| 8 HOLMEN SPESIALFOND | 861,524 | 3.1% | ||
| 9 PROTECTOR FORSIKRING ASA | 700,000 | 2.5% | ||
| 10 VERDIPAPIRFONDET NORDEA NO | 664,317 | 2.4% | ||
| 11 Danske Invest Norge Vekst | 542,000 | 2.0% | ||
| 12 VERDIPAPIRFONDET DNB SMB | 482,358 | 1.7% | ||
| 13 Goldman Sachs International | 416,571 | 1.5% Nominee | ||
| 14 INTERTRADE SHIPPING AS | 400,000 | 1.4% | ||
| 15 HAUSTA INVESTOR AS | 396,000 | 1.4% | ||
| 16 Danske Bank A/S | 320,000 | 1.2% Nominee | ||
| 17 ESPEDAL & CO AS | 308,980 | 1.1% | ||
| 18 FUROVEST AS | 236,519 | 0.9% | ||
| 19 Pictet & Cie (Europe) S.A. | 232,675 | 0.8% Nominee | ||
| 20 MP PENSION PK | 224,000 | 0.8% | ||
| Top 20 shareholders | 22,298,837 | 80.6% | ||
| Other | 5,372,122 | 19.4% | ||
| Total share outstanding | 27,670,959 | 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.