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Webstep
Investor Presentation • Nov 13, 2024
3788_rns_2024-11-13_552ea930-d7b3-458d-8ebc-bcbd8e6cd1cd.pdf
Investor Presentation
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Agenda
Highlights from the quarter
Financial Review
Organisation and projects
Market update and outlook
Highlights from the quarter
Highlights
- ● Continued revenue growth and improved profitability despite a soft market.
- ● High activity in the energy sector, leading to solid growth in regional offices on the Norwegian west coast.
- ● Henning Hesjedal appointed as new Chief Financial Officer (CFO), and joins Webstep at 1 April 2025 at the latest.
- ● Divestment of the Swedish operation closed in Early July. NOK 25 million, representing approximately half of the consideration, used on a share buyback in October 2024 which partly will be used to meet obligations arising from the Company's option program.
Organisation and projects
Haugalandet (9)
Sørlandet (21)
Oslo (213)
Stavanger (55)
Bergen (88)
Trondheim (65)
Shaping the Webstep organisation for the future
- ● The first quarter operating exclusively in Norway
- ○ Changed and enhanced sales focus
- ○ Exploit the competence and flexibility across the organization
- Strengthening our professional and social culture
- Relentless work on gaining, sharing and developing competence internally and externally
- Participated in Tenk Tech Camp to inspire and encourage young women to pursue careers in technology.
- Participation at Odin Testdagen, Data Saturday 2024, and Equinor Show & Tell.
- Top attraction at this years JavaZone with 3,200+ attendees
- ○ Develop and nurture the Webstep culture
- ■ Fostering fellowship and friendship among employees for example. though Webstep's popular autumn trips
- Relentless work on gaining, sharing and developing competence internally and externally
- ● Continued work on strategy development
Four strategic focus areas
- Strengthen and clarify our service offerings
- Be even more customer-focused and include a greater degree of business development in our sales processes
- Increase our visibility in the market
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● Strengthen the Webstep culture. Improve collaboration across regional offices and leverage the advantage of local presence in key regions, and at the same time being part of a large organisation.
Financial review
Group Q3
Key figures - Group
| Group | Q3 | Q3 | YTD | YTD | FY |
|---|---|---|---|---|---|
| NOK million | 2024 | 2023 | 2024 | 2023 | 2023 |
| Revenues | 189.4 | 184.9 | 648.6 | 636.0 | 857.7 |
| Change | 2.4% | 11.3% | 2.0% | 14.9% | 12.2% |
| EBITDA | 15.7 | 9.5 | 65.6 | 57.1 | 59.8 |
| EBITDA margin | 8.3% | 5.1% | 10.1% | 9.0% | 7.0% |
| EBIT | 10.9 | 5.0 | 51.3 | 43.9 | 17.0 |
| EBIT margin | 5.7% | 2.7% | 7.9% | 6.9% | 2.0% |
| Net profit | 7.0 | 2.7 | 36.7 | 31.3 | 4.4 |
| Net free cash flow | (19.2) | (26.2) | 11.7 | (9.9) | 75.4 |
| Cash flow from operations | (18.5) | (24.8) | 13.2 | (5.3) | 80.9 |
| Equity ratio | 56.6% | 50.1% | 56.6% | 50.1% | 47.7% |
| Earnings per share (NOK) | 0.25 | 0.10 | 1.32 | 1.13 | 0.16 |
| Earnings per share, fully diluted (NOK) | 0.25 | 0.10 | 1.32 | 1.13 | 0.16 |
| Number of FTEs, average | 448 | 457 | 448 | 456 | 460 |
| Number of FTEs, end of period | 449 | 463 | 449 | 463 | 473 |
| Revenue per FTE (TNOK) | 422.7 | 404.6 | 1,447.4 | 1,395.8 | 1,783.8 |
| EBIT per FTE (TNOK) | 24.2 | 10.8 | 114.1 | 94.8 | 32.9 |
Q3 Comments
- Operating revenues for the quarter increased by 2.4 per cent compared to the same period last year
- Revenue from own consultants up by 4.5 per cent
- Revenue from subcontractors down by 10.1 per cent
- Operating revenues year to date increased by 2.0 per cent compared to the same period last year
- Revenue from own consultants up by 3.1 per cent
- Revenue from subcontractors down by 3.5 per cent
- EBIT for the quarter is affected by:
- Annual social events carried out in September
- One-off costs of NOK 1.1 million related to severance payments
- Increased employer's contributions of NOK 0.4 (3.8) million
- EBIT year to date is affected by:
- Reduced salary expenses to administrative staff as a result of the cost reduction programme initiated at the end of FY 2023
- Reduced operating expenses as a result of increased cost focus, especially within travel and conference activities
● FTEs EoP -14 last twelve months
10 ○ A consequence of sharpening and streamlining the organisation
Market update and outlook
Webstep market update
- ● Changing market trends during the late summer
- Demand has risen along the coast, particularly in Bergen
- Oslo has experienced lower demand and increased competition
- ● Long-term trends of digitalisation remain stable
- The Norwegian Government's digitalisation strategy for 2024-2030 giving positive signals
- Reinforcing a long-standing trend towards the value of digitalisation and digital transformation
● Intensified focus on the energy sector
- ○ Thriving partnership with the Posc Caesar Association (PCA), where Webstep acts as digitalisation partner
- Webstep hosting events showcasing technology and solutions, demonstrating how semantic technology can boost industry productivity and innovation through standardisation
Outlook
- ● Digitalisation continues to trend upwards
- Energy transition and increased focus on AI are currently particularly strong drivers
- ● Mixed activity level in the market moderate demand
- Vibrant energy sector, while other sectors remain cautious with regards to investments
● Local presence an advantage
- Presence across multiple geographies enables Webstep to efficiently serve customers along the Norwegian coast, where the energy sector plays a significant role
- Fully focused on the Norwegian market going forward
- Sharpened focus and reduced complexity is expected to attract top talent and improve processes, efficiency and performance culture
- Focus on long-term goal
- Well positioned for EBIT-margin above 10%
Questions?
Please contact us at [email protected]
Appendix
Customer base characteristics
Optimizing sales and strengthening focus on enterprise market and large clients
A large and loyal customer base in both private and public sector
A diversified customers base between business sectors
Cash flow and net debt
| 30 Sep | |
|---|---|
| NOK million | 2024 |
| Cash and cash equivalents* | (64.9) |
| Restricted cash | 4.1 |
| Debt to credit institutions | 0.0 |
| Leasing liabilities (non-current and current) | 74.5 |
| Net interest bearing debt (NIBD) | 13.7 |
| NIBD/EBITDA (rolling 12 months) | (1.0) |
|---|---|
| NIBD/EBITDA (rolling 12 months) including IFRS 16 Lease liabilities | 0.2 |
● The Group has credit facility of MNOK 110
- Credit facility was unutilised by the end of third quarter
- Capex relates to office and equipment
● *Negative indicates positive amount
Top 20 shareholders at 8 November 2024
| Shareholder name | Shares | 9/0 | ||
|---|---|---|---|---|
| 1 EMBRO EIENDOM AS | 8,312,727 | 29.5% | ||
| 2 HVALER INVEST AS | 2,989,936 | 10.6% | ||
| 3 HOLMEN SPESIALFOND | 2,212,860 | 7.9% | ||
| 4 PROTECTOR FORSIKRING ASA | 1,820,002 | 6.5% | ||
| 5 | SALT VALUE AS | 1,535,258 | 5.4% | |
| 6 VPF FONDSFINANS UTBYTTE | 1,349,125 | 4.8% | ||
| 7 WEBSTEP ASA | 1,116,939 | 4.0% | ||
| 8 VERDIPAPIRFONDET DNB SMB | 1,035,593 | 3.7% | ||
| 9 J.P. Morgan SE | 794,149 | 2.8% Nomine | ||
| 10 J.P. Morgan SE | 664,317 | 2.4% Nomine | ||
| 11 INTERTRADE SHIPPING AS | 400,000 | 1.4% | ||
| 12 | ESPEDAL & CO AS | 308,980 | 1.1% | |
| 13 | MP PENSJON PK | 224,000 | 0.8% | |
| 14 | LEROLI AS | 197,281 | 0.7% | |
| 15 BJARØY KAPITAL AS | 125,782 | 0.4% | ||
| 16 Interactive Brokers LLC | 117,393 | 0.4% Nomine | ||
| 17 | Nordnet Bank AB | 115,852 | 0.4% Nomine | |
| 18 | Saxo Bank A/S | 110,173 | 0.4% Nomine | |
| 19 | BUGS AS | 106,736 | 0.4% | |
| 20 J.P. Morgan SE | 104,666 | 0.4% Nomine | ||
| Top 20 shareholders | 23,641,769 | 83.9% | ||
| Other | 4,545,899 | 16.1% | ||
| Total share outstanding | 28,187,668 | 100.0% |
Revenue, EBIT and FTE development
Revenue (LTM) EBIT (LTM)
Number of FTEs (EoP)
Number of FTEs, end of period
| Number of FTEs, end of period | Q3 | Q2 | Q1 | Q4 | Q3 |
|---|---|---|---|---|---|
| Norway | 2024 | 2024 | 2024 | 2023 | 2023 |
| Norway total | 449 | 451 | 448 | 471 | 463 |
| Oslo | 210 | 213 | 211 | 223 | 221 |
| Bergen | 95 | 88 | 84 | 91 | 90 |
| Trondheim | 63 | 65 | 65 | 65 | 64 |
| Stavanger | 53 | 55 | 56 | 59 | 57 |
| Sørlandet | 21 | 21 | 23 | 24 | 22 |
| Haugalandet | 8 | 9 | 9 | 9 | 9 |
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.