Webstep — Investor Presentation 2023

May 16, 2023

Our agenda

Highlights from the quarter

Highlights

• Strong revenue growth
  • 277.2 MNOK (+19.0%) for the quarter
  • 932.6 MNOK (+33.0%) for the last twelve months
• Stable EBIT
  • EBIT of 25.2 MNOK (+5.6%) for the quarter
  • ○ EBIT partly affected by periodic shift in culture building activities compared to corresponding quarter last year, and provision of loss on accounts receivable
  • ○ EBIT margin of 9.1% (-1.2 pp) for the quarter
• Good growth in employees
  • ○ 557 employees at the end of first quarter
  • ○ Net increase of 65 employees for the last twelve months
• Annual General Meeting 4 May 2023
  • ○ Resolution to extend the Board of Directors to constitute of 7 members, with 5 new directors endorsed by the general meeting
  • ○ Dividend of NOK 1.70 per share approved by the general meeting

4

Business review

Organization and employees

• Strong local presence
  • Close to the customer
  • Strategic partner
• Improving the Webstep employee work experience
  • Investing in our experts
  • Diverse project experiences
• Employee survey confirms a strong and proud culture
  • Employee Satisfactions- and Loyalty Index on the same high level as last year
  • Results higher than Netigate's benchmark for all questions areas
• 557 employees at the end of Q1 2023
  • Recruitment balanced against profitable growth

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

Financial review

Key figures - Group

	Q1	Q1	Y/Y	FY
NOK million	2023	2022	change	2022
Revenues	277.2	233.0	19.0%	888.4
EBITDA	30.4	28.7	6.1%	76.2
EBITDA margin	11.0%	12.3%	(1.3 pts)	8.6%
EBIT	25.2	23.9	5.6%	54.6
EBIT margin	9.1%	10.3%	(1.2 pts)	6.2%
Net profit	18.8	17.8	5.3%	38.4
Net free cash flow	16.2	20.5	(20.8%)	63.3
Earnings per share (NOK)	0.68	0.65	4.0%	1.40
Earnings per share fully diluted (NOK)	0.67	0.65	4.6%	1.39
Equity ratio	54.9%	59.2%	(4.4 pts)	57.9%
Cash and cash equivalents	76.8	67.2	14.2%	62.3
Number of employees, average (FTE)	555	481	15.3%	512
Number of employees, end of period	557	492	13.2%	538
Revenues per FTE (NOKt)	499	484	3.2%	1,736
EBIT per FTE (NOKt)	45.5	49.6	(8.4%)	106.8

Q1 Highlights

• Strong revenue growth of 19%
  • Both segments Norway and Sweden contribute to a solid revenue growth for the quarter
  • Solid revenues per FTE
• Stable EBIT although affected by weakened utilization, periodic shift in costs and provision for loss on accounts receivables
• Employees
  • Net increase of 19 employees from end of last quarter, and 65 employees for the last twelve months
  • Seasonal variations in recruitment leads to an increased number of onboarding processes

Norway

Key figures - Norway

	Q1	Q1	Y/Y	FY
NOK million	2023	2022	change	2022
Revenues	237.6	202.2	17.5%	761.6
EBIT	22.4	20.9	7.3%	47.7
EBIT margin	9.4%	10.3%	(0.9 pts)	6.3%
Number of employees, average (FTE)	453	401	13.0%	425
Number of employees, end of period	455	410	11.1%	444
Number of workdays	65	64	1.6%	253
Revenue breakdown
	Q1	Q1	Y/Y	FY
NOK million	2023	2022	change	2022
Oslo	100.3	84.9	18.0%	324.7
Regional offices	119.9	106.0	13.2%	393.7
Subcontractors	18.4	11.8	55.5%	45.7
Other / eliminations	(1.0)	(0.5)	100.0%	(2.4)
Total	237.6	202.2	17.5%	761.6

Q1 Highlights

• Revenue growth of 35 MNOK (+17.5%)
  • Increased revenues mainly driven by higher number of consultants and hourly rates, although affected by weakened utilization compared with corresponding quarter last year
• EBIT increase of 1.5 MNOK (+7.3%)
  • EBIT partly affected by higher costs related to culture building activities due to a periodic shift when compared to Q1 2022, and provision of loss on accounts receivable
• The continued initiatives to enhance profitability shows a positive trend in the organization
• Employee growth of 45 employees over the last twelve months

Sweden

Key figures - Sweden

	Q1	Q1	Y/Y	FY
NOK million	2023	2022	change	2022
Revenues	39.5	30.8	28.3%	126.9
EBIT	2.8	3.0	(6.1%)	6.9
EBIT margin	7.1%	9.7%	(2.6 pts)	5.5%
Number of employees, average (FTE)	102	80	28.0%	86
Number of employees, end of period	102	82	24.4%	102
Number of workdays	64	63	1.6%	253
Revenue breakdown
	Q1	Q1	Y/Y	FY
NOK million	2023	2022	change	2022
Regional offices	32.0	26.2	22.2%	103.0
Subcontractors	7.5	4.6	63.2%	23.9
Total	39.5	30.8	28.3%	126.9

Q1 Highlights

• Strong revenue growth of 8.7 MNOK (+28.3%)
  • Swedish segment represents 14.3% of consolidated revenue for the quarter
• EBIT 0.2 MNOK lower than corresponding quarter last year.
  • Mostly due to weakened utilization and higher overhead costs
• Q1 2023 constant currency
  • Revenues: +7.4m
  • EBIT: -0.4m
• Milestone reaching 100 employees

Outlook

Outlook

Webstep's services

Please contact us at ir@webstep.com

Appendix

A diversified customer base

17

Cash flow and net debt

Net interest bearing debt (NIBD)**	(75.2)
Debt to credit institutions	0.0
Restricted cash	1.6
Cash and cash equivalents*	(76.8)
NOK million	2023
	31 Mar

NIBD/EBITDA (rolling 12 months)	(0.9)
NIBD/EBITDA (rolling 12 months)
Including IFRS 16 Lease liabilities	0.1

• Q1 free cash flow of MNOK 16.2
• Capex relates to office and equipment
• Credit facility of MNOK 110 in Norway and SEK 5m in Sweden per end of quarter

Top 20 shareholders at 12 May 2023

	Shareholder name	Shares	%
	1 EMBRO EIENDOM AS	8,312,727	30.0%
	2 J.P. Morgan SE	1,970,890		7.1% Nominee
ന	HVALER INVEST AS	1,435,018	5.2%
ব	SALT VALUE AS	1,430,121	5.2%
	5 VERDIPAPIRFONDET DNB SMB	1,139,284	4.1%
	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 NORGE VERD	664,317	2.4%
	11 VPF FONDSFINANS UTBYTTE	600,000	2.2%
	12 Danske Invest Norge Vekst	542,000	2.0%
13	Goldman Sachs International	416,571		1.5% Nominee
	14 INTERTRADE SHIPPING AS	400,000	1.4%
	15 HAUSTA INVESTOR AS	350,000	1.3%
16	Danske Bank A/S	320,000		1.2% Nominee
11	ESPEDAL & CO AS	308,980	1.1%
18	Pictet & Cie (Europe) S.A.	232,675		0.8% Nominee
19	FUROVEST AS	231,000	0.8%
	20 MP PENSION PK	224,000	0.8%
	Top 20 shareholders	22,039,107	79.6%
	Other	5,631,852	20.4%
	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.