Webstep — Investor Presentation 2023

Feb 21, 2023

Q4 and full year 2022

Save Asmervik, CEO

21 February 2023 | Oslo

Agenda

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

Highlights from the quarter

Revenues (LTM)

Highlights

• Revenues
  • Q4: 246.4 MNOK +12.6%
  • FY 2022: 888.4 MNOK +14.6%
• EBIT actual
  • Q4: 11.8 MNOK -36.1%
  • FY 2022: 54.6 MNOK -17.1%
• EBIT adjusted
  • ○ Q4: 17.2 MNOK -6.8%
  • ○ FY 2022: 60.0 MNOK -8.9%
• One-off costs of 5.4 MNOK
  • ○ Overhead cost reduction
    • ■ Group staff reduced with two executive roles
  • ○ Write-down of 2023 lease obligation
• Focus on improving profitability
• Employees increase of 60 employees +12.6%
• Dividend proposal of NOK 1.70 per share
• New CFO, Ida Amalie Oma appointed

4

Business review

Market fundamentals

Digitalization of business processes

Cyber security and information security

Transformation of business models

Increased automation leveraging IoT and AI

• Strong long term digitalisation trend continues
• Increased need for team deliveries
• Webstep aligned with market trends
• Global tech vendors dominating

Go-to-market model

Major achievement in the enterprise market …

Team-as-a-service delivery to the largest bank in Norway

• Dedicated Webstep Team as a Service team signed up for DNB
• The TaaS team is dedicated to develop key functionality to the pension portal project
• Team training and preparation core elements in Webstep Team-as-a-service deliveries.
• Webstep TaaS customer value derives from a wide range of Webstep deliveries to high performing customers

Clean and diverse Norwegian nature and environment

• Norwegian Environment Agency aim to secure clean and diverse Norwegian nature
• Webstep mobile and web application made for hands-on field resource management
• 4-year frame agreement signed, ongoing projects

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
• 538 employees at the end of 2022
  • Recruitment balanced against profitable growth

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

10

Financial review

Key figures - Group

	Q4	Q4	Y/Y	FY	FY	Y/Y
NOK million	2022	2021	change	2022	2021	change
Revenues	246.4	218.8	12.6%	888.4	775.0	14.6%
EBITDA	18.5	22.9	(19.4%)	76.2	81.2	(6.1%)
EBITDA margin	7.5%	10.5%	(3 pts)	8.6%	10.5%	(1.9 pts)
EBIT	11.8	18.4	(36.1%)	54.6	65.9	(17.1%)
EBIT margin	4.8%	8.4%	(3.7 pts)	6.2%	8.5%	(2.4 pts)
Net profit	7.8	13.3	(41.7%)	38.6	48.5	(20.4%)
Net free cash flow	35.7	37.7	(5.1%)	63.3	46.9	34.8%
Earnings per share (NOK)	0.29	0.49	(40.9%)	1.42	1.80	(21.6%)
Earnings per share fully diluted (NOK)	0.29	0.48	(40.0%)	1.41	1.78	(20.7%)
Equity ratio	58.0%	60.7%	(2.7 pts)	58.0%	60.7%	(2.7 pts)
Cash and cash equivalents	62.3	46.7	33.5%	62.3	46.7	33.5%
Number of employees, average (FTE)	539	478	12.7%	512	449	13.9%
Number of employees, end of period	538	478	12.6%	538	478	12.6%
Revenues per FTE (NOKt)	457	458	(0.1%)	1,736	1,725	0.7%
EBIT per FTE (NOKt)	21.9	38.6	(43.3%)	106.8	146.7	(27.2%)
EBITDA adj.	22.1	22.9	(3.7%)	79.8	81.2	(1.7%)
EBITDA margin adj.	9.0%	10.5%	(1.5 pts)	9.0%	10.5%	(1.5 pts)
EBIT adj.	17.2	18.4	(6.8%)	60.0	65.9	(8.9%)
EBIT margin adj.	7.0%	8.4%	(1.5 pts)	6.8%	8.5%	(1.7 pts)

Q4 Highlights

• Solid revenue growth
• EBIT affected by one-off costs and weakened utilization
• Adjusted EBIT 17.2 MNOK
  • One-off restructuring costs of 3.6 MNOK related to overhead cost
  • One-off cost of 1.8 MNOK due to write-down of 2023 lease obligation
• Solid employee growth of 60 employees

Key figures - Norway

	Q4	Q4	Y/Y	FY	FY	Y/Y
NOK million	2022	2021	change	2022	2021	change
Revenues	210.2	188.6	11.5%	761.6	668.4	13.9%
EBIT	10.0	17.0	(41.1%)	47.7	61.1	(21.9%)
EBIT margin	4.8%	9.0%	(4.2 pts)	6.3%	9.1%	(2.9 pts)
Number of employees, average (FTE)	445	401	10.9%	425	379	12.1%
Number of employees, end of period	444	403	10.2%	444	403	10.2%
Number of workdays	64	64		253	252
EBIT adj.	15.4	17.0	(9.3%)	53.1	61.1	(13.1%)
EBIT margin adj.	7.3%	9.0%	(1.7 pts)	7.0%	9.1%	(2.2 pts)
Revenue breakdown
	Q4	Q4	Y/Y	FY	FY	Y/Y
NOK million	2022	2021	change	2022	2021	change
Oslo	92.3	80.8	14.3%	324.7	281.0	15.5%
Regional offices	105.8	97.1	8.9%	393.7	343.5	14.6%
Subcontractors	12.7	11.1	14.5%	45.7	45.8	(0.2%)
Other / eliminations	(0.6)	(0.4)	52.7%	(2.4)	(1.9)	26.7%
Total	210.2	188.6	11.5%	761.6	668.4	13.9%

Q4 Highlights

• Stable revenue growth
  • Revenue from own consultants increased with 20.3 MNOK
    • Increased revenues from average number of employees and hourly rates, partly offset by weakened utilization
• EBIT 10.0 MNOK affected by one-off costs
  • Restructuring cost
  • Write-down of 2023 lease obligation
• EBIT adjusted 15.4 MNOK
• Employee growth of 41 employees

Key figures - Sweden

NOK million	Q4 2022	Q4 2021	Y/Y change	FY 2022	FY 2021	Y/Y change
Revenues	36.2	30.2	19.9%	126.9	106.7	19.0%
EBIT	1.8	1.4	22.3%	6.9	4.8	44.1%
EBIT margin	4.9%	4.8%	0.1 pts	5.5%	4.5%	1 pts
Number of employees, average (FTE)	94	77	21.9%	86	70	23.2%
Number of employees, end of period	95	75	26.1%	95	75	26.1%
Number of workdays	64	64	0.0%	253	253	0.0%

Revenue breakdown

	Q4	Q4	Y/Y	FY	FY	Y/Y
NOK million	2022	2021	change	2022	2021	change
Regional offices	28.9	24.8	16.7%	103.0	83.6	23.2%
Subcontractors	7.2	5.4	34.7%	23.9	23.1	3.7%
Total	36.2	30.2	19.9%	126.9	106.7	19.0%

Q4 Highlights

• Solid revenue growth 19.9%
  • Swedish segment represents 14.7% of consolidated revenue in Q4
• EBIT strengthened 22.3%
• Q4 constant currency
  • Revenues: +7.8 m
  • EBIT: -0.1m
• Employee growth of 20 employees

Outlook

Outlook

• Long term trend of digitalisation continues in a changing macroeconomic environment
• Balanced growth
  • Headcount growth balanced against profitability
  • Continued work on retention
• Forward capacity
  • Expect to be 550 employees by the end of first quarter 2023
• Initiatives to increase profitability
  • Cost management
  • Strengthening focus on enterprise market
  • Optimizing sales
• 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 %

20

Cash flow and net debt

Highlights

• Q4 free cash flow of MNOK 35.7
• Capex relates to office and equipment
• Credit facility of MNOK 110 in Norway and SEK 5m in Sweden per end of quarter

Net interest bearing debt (NIBD)**	(60.6)
Debt to credit institutions	0.0
Restricted cash	1.7
Cash and cash equivalents*	(62.3)
NOK million	2022
	31 Dec

NIBD/EBITDA (rolling 12 months)	(0.8)
NIBD/EBITDA (rolling 12 months)	0.1
Including IFRS 16 Lease liabilities

21

Top 20 shareholders at 16 February 2023

	Shareholder name	Shares	%
	1 EMBRO EIENDOM AS	8,312,727	30.1%
	2 J.P. Morgan SE	1,970,890		7.1% Nominee
റ്	SALT VALUE AS	1,430,121	5.2%
	4 VERDIPAPIRFONDET DNB SMB	1,139,284	4.1%
5	HVALER INVEST AS	1,000,000	3.6%
	5 JAKOB HATTELAND HOLDING AS	1,000,000	3.6%
	5 PROTECTOR FORSIKRING ASA	1,000,000	3.6%
8	J.P. Morgan SE	900,000	3.3%	Nominee
0	HOLMEN SPESIALFOND	861,524	3.1%
	10 VERDIPAPIRFONDET NORDEA NORGE VERD	664,317	2.4%
11	Danske Invest Norge Vekst	542,000	2.0%
12	Goldman Sachs International	416,571	1.5%	Nominee
13	HAUSTA INVESTOR AS	400,000	1.4%
	13 VPF FONDSFINANS UTBYTTE	400,000	1.4%
	13 INTERTRADE SHIPPING AS	400,000	1.4%
16	Danske Bank A/S	320,000		1.2% Nominee
17	ESPEDAL & CO AS	308,980	1.1%
18	Pictet & Cie (Europe) S.A.	232,675		0.8% Nominee
19	EUROVEST AS	230,000	0.8%
	20 MP PENSION PK	224,000	0.8%
	Top 20 shareholders	21,753,089	78.7%
	Other	5,875,409	21.3%
	Total share outstanding	27,628,498	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.