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Webstep

Quarterly Report Nov 7, 2019

3788_rns_2019-11-07_80b66f85-3bcf-4e4a-80f1-2c88658519e6.pdf

Quarterly Report

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INTERIM REPORT WEBSTEP ASA Q3 2019

Q3 HIGHLIGHTS

  • ཛྷ Revenue growth hampered
  • ཛྷ Q3 revenues: NOK 137.2 million (-0.6 per cent)
  • ཛྷ YTD revenues: NOK 483.7 million (-0.9 per cent)
  • ཛྷ EBITDA negatively impacted by increased use of subcontractors and costs of growth initiatives
  • ཛྷ Q3 EBITDA: NOK 4.1 million (-53.8 per cent)
  • ཛྷ YTD EBITDA: NOK 48.4 million (-21 per cent)
  • ཛྷ Capacity growth initiatives starting to yield results:
  • ཛྷ 407 employees at quarter end, up by 5.3 per cent from end of Q2
  • ཛྷ Growth in headcount continues in Q4
  • ཛྷ Key strategies developed to restore growth capacity and realise growth potential:
  • ཛྷ Expand service offerings and delivery models in response to customer demand
  • ཛྷ Expand recruitment base; recruiting new types of expertise
  • ཛྷ Expand operations in current and new key locations in Scandinavia
  • ཛྷ Further strengthen capacity, expertise and processes within recruitment and sales
  • ཛྷ Further improve the Group's position as preferred employer

KEY FIGURES

CONSOLIDATED

(Amounts in NOK million) Q3 2019 Q3 2018 YTD 2019 YTD 2018 FY 2018
Sales revenues 137.2 138.1 483.7 487.9 663.2
EBITDA 1) 4.1 8.9 48.4 61.3 78.8
EBITDA margin 1) 3.0% 6.4% 10.0% 12.6% 11.9%
EBITDA with former principles for leasing 1) 2.4 8.9 44.0 61.3 78.8
EBITDA margin with former principles for leasing 1) 1.7% 6.4% 9.1% 12.6% 11.9%
Net profit 0.6 5.9 30.8 44.4 56.2
Net cash flow 3.2 (2.3) (24.6) (2.3) 26.9
Earnings per share (NOK) 0.02 0.22 1.16 1.68 2.13
Earnings per share, fully diluted (NOK) 0.02 0.22 1.16 1.68 2.12
Number of employees, average (FTE) 395 404 395 414 407
Number of employees, end of period 407 394 407 394 394
Number of work days, Norway (excl. vacation) 66 65 187 187 249
Number of work days, Sweden (excl. vacation) 66 65 189 189 251
EBITDA per average employee 1) (NOK thousand) 10.4 22.0 122.5 148.0 193.6
EBITDA per average employee with former principles 1) (NOK thousand) 6.1 22.0 111.5 148.0 193.6

1) See note 12 to the consolidated financial statements for alternative performance measures.

NORWAY

(Amounts in NOK million) Q3 2019 Q3 2018 YTD 2019 YTD 2018 FY 2018
Sales revenues 118.1 120.2 418.1 419.8 570.3
EBITDA 1) 3.8 8.8 45.8 57.9 75.3
EBITDA margin 1) 3.2% 7.3% 11.0% 13.8% 13.2%
EBITDA with former principles for leasing 1) 2.5 8.8 42.6 57.9 75.3
EBITDA margin with former principles for leasing 1) 2.1% 7.3% 10.2% 13.8% 13.2%
Number of employees, average (FTE) 335 346 334 354 348
Number of employees, end of period 345 338 345 338 334
Number of work days, Norway (excl. vacation) 66 65 187 187 249
EBITDA per average employee 1) (NOK thousand) 11.4 25.3 137.1 163.4 216.4
EBITDA per average employee with former principles 1) (NOK thousand) 7.5 25.3 127.6 163.4 216.4

SWEDEN

(Amounts in NOK million) Q3 2019 Q3 2018 YTD 2019 YTD 2018 FY 2018
Sales revenues 19.1 17.8 65.6 68.1 92.8
EBITDA 1) 0.3 0.1 2.6 3.4 3.5
EBITDA margin 1) 1.4% 0.6% 4.0% 5.0% 3.7%
EBITDA with former principles for leasing 1) (0.1) 0.1 1.4 3.4 3.5
EBITDA margin with former principles for leasing 1) (0.7%) 0.6% 2.1% 5.0% 3.7%
Number of employees, average (FTE) 60 58 60 59 59
Number of employees, end of period 62 56 62 56 60
Number of work days, Sweden (excl. vacation) 66 65 189 189 251
EBITDA per average employee 1) (NOK thousand) 4.4 1.7 43.3 58.0 58.9
EBITDA per average employee with former principles 1) (NOK thousand) (2.3) 1.7 23.3 58.0 58.9

1) See note 12 to the consolidated financial statements for alternative performance measures.

WEBSTEP ASA INTERIM REPORT Q3 2019 4

Revenues by quarter NOK million

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

Number of employees by quarter (average and end of period)

STRENGTHENING THE PLATFORM FOR FUTURE GROWTH

Webstep reports a slight revenue decrease in the third quarter, due to lower capacity year-on-year. Margins were negatively affected by increased use of subcontractors, costs of increased recruiting- and sales capacity and other initiatives to re-establish growth. A comprehensive set of strategic initiatives will be implemented to restore growth capacity and realise untapped growth potential towards 2022.

Webstep ASA ("the Group" or "Webstep") recorded consolidated revenues in the third quarter of NOK 137.2 million, down 0.6 per cent from the same quarter last year. Revenues were affected by reduced headcount year-on-year, but the reduction was offset by increased hourly rates and increased use of subcontractors. Revenues decreased by 0.9 per cent year to date compared to last year and ended at NOK 483.7 million. The reduction reflects the reduced capacity following the fierce competition for IT expert consultants.

EBITDA for the third quarter amounted to NOK 4.1 million, down 53.8 per cent

from the corresponding quarter of 2018. Seasonality effects influence EBITDA in the third quarter every year due to the summer holidays and annual investments that Webstep makes in competence development and social activities for the employees each September. The third quarter EBITDA is also affected by the increased use of subcontractors and costs related to strategic initiatives implemented to strengthen the platform for future growth, such as additional recruiting- and sales capacity. Lower utilisation and higher onboarding costs also had an effect on third quarter EBITDA as a

consequence of the increased headcount.

EBITDA year to date ended at NOK 48.4 million, down by 21 per cent from the same period last year. The main reasons for the reduced EBITDA year to date 2019 are the increased use of subcontractors, costs related to the change of CEO, expensed costs related to Internet of Things (IoT) and the aforementioned initiatives to increase growth capacity.

The EBITDA margin was 3.0 per cent (6.4 per cent)1 for the third quarter and 10.0 per cent (12.6 per cent) year to date, reflecting the abovementioned situation.

1) Numbers in brackets refer to the corresponding reporting period/reporting date in 2018, unless otherwise specified.

The new reporting standard IFRS 16 Leases, which was implemented by the Group 1 January 2019, had a positive EBITDA effect of NOK 1.7 million in the third quarter and NOK 4.4 million the first nine months. Adjusted EBITDA based on the former principles for classification of leasing was NOK 2.4 million (NOK 8.9 million) for the third quarter, and NOK 44.0 million (NOK 61.3 million) year to date.

Net profit for the third quarter was NOK 0.6 million, down from NOK 5.9 million in the same quarter last year. Net profit year to date was NOK 30.8 million down from NOK 44.4 million in the same period in 2018.

The financial position at 30 September is strong, with total equity of NOK 362.4 million (NOK 357.3 million), corresponding to an equity ratio of 68 per cent (67 per cent).

Cash flow from operations in the third quarter amounted to NOK 36.0 million (NOK 1.3 million), and NOK 23.2 million (NOK 23.8 million) year to date. Cash and cash equivalents at 30 September

were NOK 8.9 million (NOK 4.2 million).

The market growth continues, with generally high demand for Webstep's core digitalisation offering. The growth in sales of New Services, such as IoT and advanced analytics, continues and contributes to a stronger offering to existing and new customers in all locations.

The general outlook remains positive. The expectation of a long-term market growth is supported by the fact that Webstep has won some large, long term contracts and frame agreements in 2019.

Webstep enjoys a strong position in an attractive growth market and has a robust order book. The high demand has driven an increase in hourly rates compared to 2018.

However, growth capacity is still a challenge, following the already high utilisation and the continuously challenging market conditions for recruitment of IT experts. The effects of some of the growth initiatives have started to yield results, and headcount is expected be

further strengthened in the fourth quarter.

Webstep Sweden saw reduced demand for its services and exited the third quarter with some excess capacity. There are indications that the market in Sweden is cooling. A higher emphasis will therefore be put on sales rather than recruitment going forward.

A strategic review has been conducted with the purpose of further strengthening Webstep's position towards 2022, as an IT expert consultancy in the Scandinavian market.

A set of strategies have been developed to restore growth capacity in the Technology Expert business area and at the same time realise untapped growth potential in the Tech Advisory & Management and the Solutions business areas.

Market focus going forward will remain on current and new locations in key cities in Scandinavia. The growth strategy will mainly be organic, but M&A may be utilised as a strategic tool to access new customer relations or new expertise.

The business model will be subject to development and expansion. Measures will be made to move up the value chain and increase business opportunities by more actively offering a wider range of expert services, as mentioned above.

Webstep's three business areas will be made clearer, with focus on positioning Webstep as the preferred partner through the customers' complete digital journey, and with a stronger service offering:

  • Further strengthening of the core business area; Technology expert consultancy services.
  • Technology advice and management will be further developed and strengthened to meet increased demand.
  • Solutions will be further developed and strengthened with more deliveries of complete solutions in cooperation with our network of technology partners.

Increase of recruitment and reduction of employee turnover are prerequisites for growth. Initiatives will be made to expand the recruitment universe, strengthen recruitment capacity, expertise and processes. Measures will also be made to further improve the Group's position as preferred employer.

A new brand strategy is under development, with the objective of strengthening Webstep's brand recognition and reputation. As a consequence, the capacity and expertise within branding, marketing and communication will be further strengthened.

The long-term ambition to exceed the market average in terms of revenue growth and EDBITA margin remains unchanged. However, measures to strengthen the capabilities to support future growth are needed and will include costs that may create a short-term challenge for the ability to maintain an EBITDA margin above the average market level. The dividend policy remains unchanged.

FINANCIAL REVIEW

PROFIT AND LOSS Third Quarter

Third quarter consolidated revenues were NOK 137.2 million (NOK 138.1 million), down 0.6 per cent from the same quarter last year.

Webstep's revenue model is primarily based on hourly fees, with revenue capacity dependent on the number of consultants, number of working days and hourly rates. The average number of employees in the third quarter of 2019 was 395 (404) and the number of working days was 66 (65) in both Norway and Sweden.

Cost of services and goods sold, mostly from use of subcontractors, amounted to NOK 17.9 million (NOK 12.9 million) for the quarter.

Personnel expenses include salaries and benefits, pension, tax, vacation pay and other items. A high proportion of salary is variable. New consultants receive a guaranteed base salary in the onboarding phase, which may affect personnel expenses in periods with high onboarding activity, which is the case for the third quarter.

Salaries and personnel costs amounted to NOK 106.2 million (NOK 107.3 million) for the quarter. The decrease from 2018 is explained by lower revenue-based salaries for consultants, partly offset by recruitment of sales- and management personnel. In September every year, significant investments are made in competence development and social activities for the employees. These annual recurring events affect both personnel cost and other operating expenses, and they also have an impact on the number of available billable hours in the third quarter.

The Group uses earnings before interest, taxes and depreciations (EBITDA) as an alternative performance measure, as described in note 12 to the consolidated financial statements for the first nine months of 2019. Total consolidated EBITDA in the third quarter amounted to NOK 4.1 million (NOK 8.9 million). The new reporting standard IFRS 16 Leases, which was implemented by the Group 1 January 2019, had a positive effect on EBITDA amounting to NOK 1.7 million for the third quarter. Adjusted EBITDA based on the former principles for classification of leasing was NOK 2.4 million (NOK 8.9 million) for the third quarter.

Depreciation and impairment for the third quarter amounted to NOK 2.6 million (NOK 0.7 million). The main reason for the increase is the abovementioned implementation of IFRS 16 Leases which results in a reclassification of the majority of lease costs from other operating expenses to depreciation. Further, R&D investments related to IoT are depreciated from 1 January 2019.

Operating profit was NOK 1.5 million (NOK 8.2 million) for the third quarter. Net financial costs were NOK 0.7 million (NOK 0.6 million) for the third quarter. Income tax amounted to NOK 0.2 million (NOK 1.7 million) for the third quarter. Net profit for the third quarter was NOK 0.6 million (NOK 5.9 million).

Year to Date

Revenues year to date were NOK 483.7 million (NOK 487.9 million), down 0.9 per cent from the same period last year. The negative revenue impact caused by lower capacity in 2019 has been more or less offset by higher hourly rates and increased use of subcontractors.

Cost of services and goods sold, mostly from use of subcontractors, amounted to NOK 61.6 million (NOK 45.2 million) year to date. The significant increase is attributable to the aforementioned increase in the use of subcontractors.

Salaries and personnel costs came to NOK 344.8 million (NOK 351.6 million) year to date. The decrease from 2018 is explained by lower revenue-based salaries for consultants, partly offset by recruitment of sales- and management personnel, including one-off effects related to the change of CEO.

Total consolidated EBITDA amounted to NOK 48.4 million (NOK 61.3 million) year to date. The new reporting standard IFRS 16 Leases had a positive effect on EBITDA amounting to NOK 4.4 million year to date. Adjusted EBITDA based on the former principles for classification of leasing was NOK 44.0 million (NOK 61.3 million) year to date.

The EBITDA margin year to date was 10.0 per cent and 9.1 per cent when adjusted for IFRS 16 (12.6 per cent). The main reasons for the reduced margin are the increased revenue from subcontractors, costs related to the change of CEO, expensed costs related to IoT and the aforementioned initiatives to increase growth capacity. One-off costs related to change of CEO amounted to approximately NOK 2.8 million. Costs amounting to NOK 2.1 million that have previously been capitalised as R&D investments in IoT are recognised as expenses in profit and loss from 1 January 2019 as the investments have started to generate revenue.

Depreciation and impairment year to date amounted to NOK 7.1 million (NOK 1.9 million). The main reasons for the

increase are the abovementioned implementation of IFRS 16 Leases and depreciation of R&D investments related to IoT. Operating profit was NOK 41.3 million year to date (NOK 59.3 million). Net financial costs were NOK 1.8 million (NOK 1.8 million) year to date, and income tax amounted to NOK 8.7 million (NOK 13.2 million). Net profit was NOK 30.8 million (NOK 44.4 million) year to date.

FINANCIAL POSITION AND CASH FLOW

Total assets at 30 September amounted to NOK 532.5 million (NOK 534.6 million). Non-current assets were NOK 412.0 million (NOK 388.9 million) and mainly consisted of intangible assets. Intangible assets amount to NOK 383.6 million (NOK 383.4 million), and primarily comprise acquisition-related goodwill of NOK 377.2 million, which is impairment tested annually. Right-of-use assets amounting to NOK 22.7 million has been recognised in the balance sheet as a consequence of the implementation of IFRS 16 Leases. The right to use the leased objects of operational lease agreements are now classified as fixed assets.

Total current assets of NOK 120.4 million (NOK 145.7 million) consisted of trade receivables, other current receivables and cash and short-term deposits. Trade receivables at quarter end were NOK 106.0 million (NOK 138.3 million). Most receivables are due at month end. Other current receivables were NOK 5.6 million (NOK 3.1 million). Cash and short-term deposits amounted to NOK 8.9 million (NOK 4.2 million).

Total equity 30 September was NOK 362.4 million (NOK 357.3 million). The change is mainly related to earnings generated and 2018 dividends paid in 2019.

Non-current liabilities amounted to NOK 16.8 million (NOK 1.5 million). Non-current liabilities mainly consist of the liabilities related to the abovementioned lease contracts, which are classified as non-current

liabilities in accordance with IFRS 16. Current liabilities amounted to NOK 153.3 million (NOK 175.8 million). Current leasing liabilities arising from the implementation of IFRS 16, amounts to NOK 7.5 million.

Cash flow from operations in the third quarter of 2019 amounted to NOK 36.0 million (NOK 1.3 million) and NOK 23.2 million (NOK 23.8 million) year to date. The increased cash flow in the third quarter compared to 2018 can be explained by change in trade receivables and other liabilities, offset by reduced profit. The initial recognition of right-of-use assets and borrowings following the implementation of IFRS 16 are non-cash transactions. However, the implementation has an effect on the presentation of the cash flow statement: Lease costs related to premises that were previously classified as cash flow from operating activities, are now partly classified as operating activities, and partly as repayment of borrowings.

ORGANISATION

Webstep relocated its head office from Lysaker outside of Oslo to the Oslo city centre in September. The head office is now located at the Epicenter building, an innovative workspace housing about 60 technology companies. Two other Webstep offices have also relocated during 2019 to more central locations to use the offices for branding purposes and to create a positive and vibrant atmosphere for the employees, customers and other visitors. These are some of many initiatives implemented in 2019 to support growth.

Recruitment and retention remain key priorities and the effects of the numerous initiatives and persistent efforts are starting to yield results. As part of the strategic review process, Webstep has explored opportunities that can grow the recruitment base. Some of the initiatives will be implemented in the coming quarters such as:

■ Expansion of service offerings and delivery models to meet customer demand will require new types of expertise and hence expand the recruitment base

  • Recruiting and sales capacity, expertise and processes will be furthered strengthened
  • Measures to further improve the Group's position as preferred employer

These measures are also expected to have a positive effect on employee retention.

The Group's capacity within cloud services, the strong partnerships with market leaders such as Amazon Web Services, Google and Blue Prism, and the successful establishment of highly skilled machine learning and analytics expertise environments, are all measures that have strengthened Webstep's market offering and cross selling opportunities.

The Group has also made recruitments within New Services in 2019 where the market is yet to mature. This is also considered an important investment for future growth.

SEGMENTS

Webstep has two reporting segments; Norway and Sweden. Norway accounts for around 86 per cent of total revenues.

NORWAY

Webstep Norway is headquartered in Oslo and also has offices in Bergen, Stavanger, Trondheim, Kristiansand and Haugesund. The Group provides high-end IT consultancy services to more than 200 public and private clients across the country. The core offering consists of digitisation, cloud services and integration. In addition, Webstep is steadily taking advantage of key fast-growing markets, including Internet of Things ("IoT"), machine learning, robotics and analytics.

Third quarter

Total operating revenues for the third quarter came to NOK 118.1 million (NOK 120.2 million), a decrease of 1.8 per cent from the corresponding quarter last year. Fewer employees compared to 2018 had a negative effect on revenue, but this was partly offset by increased revenue from subcontractors and one more work day compared to 2018. EBITDA for the third quarter came to NOK 3.8 million (NOK 8.8 million). The reduced EBIT-DA is explained above. The positive effect of the implementation IFRS 16 on third quarter EBITDA was NOK 1.3 million.

Year to date

Total operating revenues year to date were NOK 418.1 million (NOK 419.8 million), more or less unchanged from 2018. The negative effect caused by fewer employees in 2019 compared to 2018 has been offset by increased use of subcontractors and higher hourly rates. EBITDA year to date came to NOK 45.8 million (NOK 57.9 million). The EBITDA represents an EBITDA margin of 11.0 per cent (13.8 per cent) year to date. The positive effect of the implementation IFRS 16 on EBITDA was NOK 3.2 million year to date.

The market conditions in Norway remain very favourable, with generally high order intake and backlog, and particularly high demand for Webstep's core digitalisation services.

Webstep Norway had 345 employees at the end of the third quarter (338 employees). The average number of employees in the quarter was 335 (346).

SWEDEN

Webstep Sweden has offices in Stockholm, Malmö, Uppsala and Sundsvall. Webstep Sweden serves clients in different industries, mainly in the private sector, and delivers the same high-end IT consultancy services as Webstep Norway, primarily within the Group's core digitalisation offering.

Third quarter

Operating revenues for the third quarter came to NOK 19.1 million (NOK 17.8 million), an increase of 7.4 per cent compared to the same quarter last year. There are no significant effects from currency translation when comparing figures for the third quarter of 2019 versus the same quarter of 2018. The revenue increase is attributable to increased use of subcontractors and increased hourly rates, but a slightly lower utilisation in the third quarter had a negative effect on both revenue and EBITDA. EBITDA came to NOK 0.3 million for the quarter (NOK 0.1 million). The positive effect of the implementation IFRS 16 on third quarter EBITDA, was NOK 0.4 million.

Year to date

Operating revenues year to date came to NOK 65.6 million (NOK 68.1 million), a decrease of 3.7 per cent compared to the same period in 2018. The decrease is attributable to less use of subcontractors and a negative currency effect of NOK 1.2 million. EBITDA came to NOK 2.6 million (NOK 3.4 million) year to date which represents an EBITDA margin of 4.0 per cent (5.0 per cent). The positive effect of the

implementation IFRS 16 on EBITDA was NOK 1.2 million.

The margin level in Webstep Sweden is lower than in Webstep Norway. Hourly rates in the Swedish market are lower than in the Norwegian market, and Webstep Sweden also has a higher cost level relative to revenues due to investments in management capacity and marketing initiatives to support future growth.

Webstep Sweden had 62 employees at the end of the quarter (56 employees). The average number of employees in the quarter was 60 (58).

STRATEGIC UPDATE

A strategic review has recently been conducted with the purpose of clarifying the Group's ambitions and targets and developing strategies to further strengthen the market position. The overall ambition for 2020-2022 is to strengthen Webstep's position as an IT expert consultancy in the Scandinavian market, by restoring growth capacity and meeting customers demand for a wider range of services, expertise and capacity.

A set of strategies have been developed to restore growth capacity in the Technology Expert business area and at the same time realise untapped growth potential in the Tech Advisory & Management and the Solutions business areas:

  • Market focus will be on current and new locations in key cities in Scandinavia. The growth strategy will mainly be organic, but M&A may be utilised as a strategic tool to access new customer relations or new expertise.
  • A recent customer survey reveals that there is an increasing number of requests for full teams that can deliver end-to-end solutions. As a response to this, the Solutions business area will be further developed and strengthened with more deliveries of complete solutions in cooperation with our network of technology partners. The

survey also confirms increased demand for strategic technology advice for the customers' complete digital journey. This will be met with a stronger offering of advisory services.

  • The business model will be developed and expanded, with focus on moving up the value chain and increasing business opportunities by offering a wider range of expert services, as mentioned above. Webstep's three business areas will be made clearer; with continued strong emphasis on the Technology expert consultancy offering, and a stronger emphasis on the offering of trusted advisors, project managers and providers of solutions. Increased focus on a wider range of services and delivery models, will also allow for alternative revenue streams.
  • Increase of recruitment and reduction of employee turnover are prerequisites for growth. The recruitment strategy will

include initiatives to expand the recruitment universe, strengthen recruitment capacity, expertise and processes. The retention strategy includes measures to further improve the Group's position as preferred employer.

■ A new brand strategy is under development, with the objective of strengthening Webstep's brand recognition and reputation. As a consequence, the capacity and expertise within branding, marketing and communication will be further strengthened. A new position as Chief Marketing and Communication Officer has been stablished from 1 November 2019.

OUTLOOK

The overall market outlook is strong, following the continued general trend with high investment activity in digitalisation of the private and public sectors.

External market research reports and a recent customer survey both support the

general expectations of continued market growth and the specific growth in demand for a wider range of services:

  • "Digitalisation wave 2" is expected to drive growth in "End to end" digitalisation of core business processes as well as demand for new products and services, new business processes and models
  • Industrialisation of IT will drive demand for mass produces and standardised products from a few global players with innovative power and benefits of scale.
  • Demand for cyber security services will grow, as mid-size businesses also start acknowledging the risk.
  • Increasing application of new technologies, such as IoT, blockchain. AI, ML etc is also expected to drive sustained high demand for Webstep's offering of IT expertise.

Webstep has a strong order book that confirms the good momentum.

The general capacity utilisation is expected to remain high going forward, although affected in the near-term by onboarding of new employees and recruitment of expertise and capacity within the New Services. The indications of somewhat lower activity in the Swedish market may also affect utilisation to some extent. Webstep Sweden will focus on sales rather than recruitment in the coming quarter.

The average number of employees is expected to increase in the fourth quarter compared to the third quarter of 2019, and the average is expected to be higher than the corresponding quarter in 2018. Revenues from subcontractors are expected to be lower than in the fourth quarter of 2018.

The intention behind the abovementioned growth strategies and initiatives is to build a robust platform for future growth that supports the unchanged over-all and long-term ambition of the Group; to exceed the market average in terms of growth and profitability, measured as revenue growth and EBIT-DA-margin level respectively. However, measures to strengthen the capabilities to support future growth are needed and will include costs that may create a short-term challenge for the ability to maintain an EBITDA margin above the average market level. The dividend policy remains unchanged.

THE BOARD OF DIRECTORS AND CEO OF WEBSTEP ASA

OSLO, 6 NOVEMBER 2019

Klaus-Anders Nysteen Chair of the board

Trond K. Johannessen Board member

Toril Nag Board member

Siw Ødegaard Board member

Bjørn Ivar Danielsen Board member

Arne L. Norheim Chief Executive Officer

WEBSTEP ASA INTERIM REPORT Q3 2019 17

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Q3 Q3 YTD YTD Full year
(Amounts in NOK 1000) Note 2019 2018 2019 2018 2018
Sales revenues 137 237 138 060 483 701 487 862 663 153
Total revenues 137 237 138 060 483 701 487 862 663 153
Cost of services and goods 17 894 12 898 61 561 45 203 70 635
Salaries and personnel cost 106 176 107 309 344 823 351 562 470 813
Depreciation and impairment 9 2 602 661 7 106 1 936 2 927
Other operating expenses 9 073 8 983 28 930 29 817 42 909
Operating profit(loss) 1 492 8 209 41 282 59 344 75 868
Net financial items (712) (601) (1 755) (1 756) (2 339)
Profit before tax 780 7 607 39 527 57 588 73 530
Income tax expenses 173 1 749 8 687 13 211 17 310
Profit for the period 608 5 859 30 840 44 377 56 220
Earnings per share (NOK) 6 0.02 0.22 1.16 1.68 2.13
Earnings per share, fully diluted (NOK) 6 0.02 0.22 1.16 1.68 2.12
Other comprehensive income:
Currency translation differences 587 652 (3 444) (6 090) (2 109)
Other comprehensive income for the period, net of tax 587 652 (3 444) (6 090) (2 109)
Total comprehensive income for the period, net of tax 1 194 6 510 27 395 38 287 54 111
Attributable to:
Shareholders in parent company 1 194 6 510 27 395 38 287 54 111

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

30 Sept 30 Sept 31 Dec
(Amounts in NOK 1000) Note 2019 2018 2018
ASSETS
Non-current assets
Intangible assets 8 383 595 383 425 387 816
Fixed assets 5 354 5 250 5 011
Right-of-use assets 9 22 655 - -
Non-current financial assets 10 - 10
Deferred tax asset 436 232 436
Total non-current assets 412 049 388 907 393 274
Current assets
Trade receivables 105 999 138 335 103 288
Other current receivables 5 574 3 133 4 983
Cash and short-term deposits 8 864 4 237 33 478
Total current assets 120 437 145 705 141 749
Total assets 532 486 534 612 535 023
30 Sept 30 Sept 31 Dec
(Amounts in NOK 1000) Note 2019 2018 2018
EQUITY
Share capital 26 967 26 967 26 967
Treasury shares 6 (486) (610) (486)
Share premium 154 803 150 664 153 964
Retained earnings 181 155 180 306 196 130
Non-controlling interest - - -
Total equity 362 438 357 327 376 574
LIABILITES
Non-current liabilities
Non current leasing liabilities 9 15 128 - -
Deferred tax 1 635 1 485 1 753
Total non-current liabilities 16 763 1 485 1 753
Debt to credit institutions 10 - 41 521 -
Current leasing liabilities 9 7 527 - -
Trade and other payables 18 503 11 986 21 558
Tax payable 16 624 12 876 16 530
Dividends payable - - -
Social taxes and VAT 46 909 47 786 53 738
Other short-term debt 11 63 722 61 631 64 868
Total current liabilities 153 285 175 800 156 695
Total equity and liabilities 532 486 534 612 535 023

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Total
Foreign attributable
currency to equity Non
Issued Treasury Share translation Retained owners controlling Total
(Amounts in NOK 1000) capital shares premium reserve earnings parents interest equity
At 1 January 2018 26 967 (610) 149 823 12 391 169 167 357 738 - 357 738
Profit for the period - - - - 56 220 56 220 - 56 220
Sales of treasury shares - 124 3 020 - - 3 144 - 3 144
Other comprehensive income/(loss) - - - (2 109) - (2 109) - (2 109)
Share incentive prorgram - - 1 117 - - 1 117 - 1 117
Other comprehensive income/(loss) - - - - - - - -
Dividends - - - - (39 535) (39 535) - (39 535)
At 31 December 2018 26 967 (486) 153 960 10 282 185 851 376 574 - 376 574
Profit for the period - - - - 30 840 30 840 - 30 840
Sales treasury shares - - - - - - - -
Other comprehensive income/(loss) - - - (3 444) - (3 444) - (3 444)
Share incentive program - - 839 - - 839 - 839
Dividends - - - - (42 369) (42 369) - (42 369)
At 30 September 2019 26 967 (486) 154 799 6 838 174 322 362 438 - 362 438

CONSOLIDATED STATEMENT OF CASH FLOWS

Q3 Q3 1 Jan - 30 Sept 1 Jan - 30 Sept 1 Jan - 31 Dec
(Amounts in NOK 1000) Note 2019 2018 2019 2018 2018
Operating activities
Profit/(loss) before tax 780 7 607 39 527 57 588 73 530
Adjustments for:
Depreciation of property, plant and equipment 9 2 602 661 7 106 1 936 2 927
Net change in trade and other receivables 32 512 5 623 (3 302) (12 337) 20 860
Net change in other liabilities 912 (12 760) (11 031) (15 916) 2 846
Net foreign exchange differences (357) 95 (443) 137 (192)
Income tax expenses (434) 36 (8 624) (7 560) (8 043)
Net cash flow from operating activities 36 015 1 263 23 233 23 849 91 927
Investing activities
Payments for R&D initiative - (558) - (1 930) (2 762)
Purchase of property and equipment (650) (771) (2 344) (1 960) (2 707)
Net cash flow from investing activities (650) (1 328) (2 344) (3 890) (5 469)
Financing activities
Repayments of lease liabilities 9 (1 531) - (3 972) - -
Change in bank overdraft 10 (30 942) (2 261) - 17 234 (24 287)
Net proceeds from equity - - - - -
Payment of dividends - - (42 369) (39 535) (39 535)
Sale of treasury shares 6 280 - 838 - 4 261
Net cash flows from financing activities (32 193) (2 261) (45 503) (22 302) (59 562)
Net increase/(decrease) in cash and cash equivalents 3 172 (2 326) (24 614) (2 343) 26 898
Cash and cash equivalents at the beginning of the period 5 692 6 563 33 478 6 580 6 580
Cash and cash equivalents at the end of the period 8 864 4 237 8 864 4 237 33 478

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 GENERAL INFORMATION

THE COMPANY AND THE GROUP

Webstep ASA (the Company) is a Norwegian public limited liability company. The shares of the Company were listed on Oslo Stock Exchange 11 October 2017. The Company has two fully owned subsidiaries: Webstep AS in Norway and Webstep AB located in Sweden.

The Company and its subsidiaries (together the Webstep Group/the Group) are leading providers of IT expert consultants in Norway and Sweden. The Group aims to be at the forefront of the technological development and to assist its customers in their digitalisation through the offering of cutting-edge IT expertise. The Group's core digitalisation offerings are digitalisation, cloud migration and integration, in addition to its other new focus areas Internet of Things (IoT), machine learning, robotics and analytics.

NOTE 2 BASIS OF PREPARATION AND STATEMENTS

BASIS FOR PREPARATION

The financial statements are presented in NOK, rounded to the nearest thousand, unless otherwise stated. As a result of rounding adjustments, the figures in one or more rows or columns included in the financial statements and notes may not add up to the total of that row or column.

STATEMENTS

These condensed consolidated interim financial statements for the third quarter and first nine months of 2019 have been prepared in accordance with IAS 34 as approved by the EU (IAS 34). They have not been audited or subject to a review by the auditor. They do not include all the information required for full annual financial statements of the Group and should consequently be read in conjunction with the consolidated financial statements for 2018. The accounting policies applied are consistent with those applied and described in the consolidated annual financial statements for 2018, which are available on www.webstep.com and upon request from the Company's registered office at Edvard Storms gate 2, 0166 Oslo, Norway.

These condensed consolidated interim financial statements for the third quarter and first nine months of 2019 were approved by the Board of Directors and the CEO 6 November 2019.

ACCOUNTING POLICIES

The Group prepares its consolidated annual financial statements in accordance with IFRS as adopted by the EU (International Financial Reporting Standards - IFRS) and the Norwegian Accounting Act. References to IFRS in these accounts refer to IFRS as approved by the EU. The date of transition was 1 January 2016. The accounting policies adopted are consistent with those of the previous financial year, apart for the implementation of IFRS 16 Leases 1 January 2019.

IFRS 15 Revenue from contracts

IFRS 15 supersedes IAS 11 Construction Contracts, IAS 18 Revenue and related Interpretations and it applies, with limited exceptions, to all revenue arising from contracts with its customers. IFRS 15 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The nature of the contracts in the Group, where billable consultancy hours are recognised when delivered to the customer at an amount that reflect the Group's expected consideration in exchange for the hours provided, is such that no impact on established principles for revenue recognition have been identified applying the model from IFRS 15. The Group has no fixed price contracts with the customers that mandates revenue recognition over time.

IFRS 16 Leases

The new standard for leases, IFRS 16, has been implemented with effect from 1 January 2019. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for financial leases under IAS 17. The Group as a lessee can choose to apply the standard using either a full retrospective or a modified retrospective approach.

The Group has reviewed its lease agreements and assessed the effects of IFRS 16 on its consolidated financial statements. The Group has implemented IFRS 16 using the modified retrospective method for all lease agreements existing on the implementation date. Comparative figures will not be restated by using the modified retrospective method.

In accordance with the standard exemptions are made for low-value assets (less than NOK 50 000) and short-term leases (less than 12 months).

See note 9 for further information regarding IFRS 16 and the implementation effects.

Comparative figures IFRS 16 versus IAS 17

(Amounts in NOK 1000) IFRS 16
Q3 2019
IAS 17
Q3 2019
IAS 17
Q3 2018
IFRS 16
YTD 2019
IAS 17
YTD 2019
IAS 17
YTD 2018
Sales revenues 137 237 137 237 138 060 483 701 483 701 487 862
Total revenues 137 237 137 237 138 060 483 701 483 701 487 862
Cost of services and goods
Salaries and personnel cost
17 894
106 176
17 894
106 176
12 898
107 309
61 561
344 823
61 561
344 823
45 203
351 562
Other operating expenses
Operating expenses before depreciation
9 073
133 143
10 775
134 845
8 983
129 191
28 930
435 314
33 284
439 668
29 817
426 582
EBITDA 4 094 2 392 8 869 48 388 44 033 61 280
Depreciation and impairment 2 602 1 071 661 7 106 3 134 1 936
Operating profit(loss) 1 492 1 321 8 209 41 282 40 899 59 344
Net financial items (712) (541) (601) (1 755) (1 372) (1 756)
Profit before tax 780 780 7 607 39 527 39 527 57 588

NOTE 3 ESTIMATES, JUDGMENTS AND ASSUMPTIONS

The preparation of condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the annual consolidated financial statements for 2018 and as described in note 3 to the 2018 statements.

NOTE 4 SEGMENTS

The Group has two geographical reporting segments. Revenues and expenses are reported in the legal entity where they occur and hence reported in the segment in which the legal entity belongs. Segment performance is evaluated on the basis of revenue and EBITDA performance. Assets and liabilities are not allocated between the segments. Please refer to note 5 to the annual consolidated financial statements for 2018 for more information on the segments.

SUMMARY PROFIT AND LOSS: NORWAY

(Amounts in NOK 1000) Q3 Q3 Q3 YTD Q3 YTD Full year
2019 2018 2019 2018 2018
Revenue 118.1 120.2 418.1 419.8 570.3
Total costs 114.3 111.5 372.4 362.0 495.0
EBITDA1) 3.8 8.8 45.8 57.9 75.3
EBITDA margin1) 3.2% 7.3% 11.0% 13.8% 13.2%

SUMMARY PROFIT AND LOSS: SWEDEN

(Amounts in NOK 1000) Q3 Q3 Q3 YTD Q3 YTD Full year
2019 2018 2019 2018 2018
Revenue 19.1 17.8 65.6 68.1 92.8
Total costs 18.9 17.7 63.0 64.6 89.3
EBITDA1) 0.3 0.1 2.6 3.4 3.5
EBITDA margin1) 1.4% 0.6% 4.0% 5.0% 3.7%

1) See note 12 for alternative performance measures.

NOTE 5 EXPLANATORY COMMENTS ABOUT THE SEASONALITY OR CYCLICALITY OF INTERIM OPERATIONS

The Group's net operating revenues are affected by the number of working days within each reporting period while employee expenses are recognised for full calendar days. The number of working days in a month is affected by public holidays and vacations. The timing of public holidays' during quarters and whether they fall on weekdays or not impact revenues. Q3 2019 had one more work day compared to Q3 2018 in Norway and Sweden.

NOTE 6 EARNINGS PER SHARE

There are dilutive effects on the number of shares due to the share program for the Group's employees. The program allows participants who purchased shares in the employee offering ("Saving Shares") in the IPO to receive shares ("Matching Shares") free of charge after a vesting period of two years, provided that they remain employed by the Group and retain all the purchased Saving Shares throughout the said vesting period. The dilution through this program accounts for 72 411 shares. 30 September 2019, the Company had 26 480 590 shares outstanding (excl. treasury shares). The number of treasury shares held by Webstep is 486 427. Following the transfer of Matching Shares on 16 October 2019, the Company holds 414 016 own shares.

(Amounts in NOK 1000) Q3
2019
Q3
2018
Q3 YTD
2019
Q3 YTD
2018
Full year
2018
Profit for the period
Average number of shares (excl. treasury shares)
608
26 481
5 859
26 357
30 840
26 481
44 377
26 357
56 220
26 367
Average number of shares, fully diluted (excl. treasury shares) 26 553 26 458 26 565 26 462 26 470
Earnings per share (NOK) 0.02 0.22 1.16 1.68 2.13
Earnings per share, fully diluted (NOK) 0.02 0.22 1.16 1.68 2.12

NOTE 7 FAIR VALUE OF FINANCIAL INSTRUMENTS

The Group's financial instruments are primarily trade receivables and other receivables, cash and cash equivalents and accounts payables, for which the book value is a good approximation of fair value. The Group's interest-bearing liabilities are mainly debt to credit institutions, amounting to NOK 0 (NOK 41.5 million 30 September 2018).

The Group owns a limited amount of treasury shares at quarter end, 0.5 million, booked at face value.

NOTE 8 INTANGIBLE ASSETS

Intangible assets mainly consist of goodwill arisen from Webstep ASA's acquisitions of Webstep AS (Norway) in 2011 and Webstep AB in 2012/2013 (Sweden) and investments in R&D.

Net book value (NOK 1000) 30 Sept 2019 30 Sept 2018 31 Dec 2018
Goodwill 377 158 376 684 380 244
Research and development 6 437 6 741 7 573
Total 383 595 383 425 387 816

For further details, please refer to note 10 to the Group's consolidated annual financial statements for 2018.

NOTE 9 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

The Group has changed accounting principle for its rented premises in accordance with IFRS 16. The rental cost was previously recognised as operational leasing according to IAS 17. As of 1 January 2019 the Group has recognised right-of-use premises at values equaling remaining lease liabilities of its rented premises. The practical expedients in IFRS 16 paragraph C10(a), C10(b), C10(c) and C10(e) are applied to initial application of the Standard. Previous periods statements have not been restated in accordance with IFRS 16 paragraph C7 and C5(b).

The Group has applied its weighted average incremental borrowing rate for all the leases, recognised as financial, due to the similar characteristics of the leases. The rate applied is 4.12 per cent and is based on the rate agreed upon in current Revolving Credit Facility and identified as the incremental borrowing rate.

Implementation effects

The initial recognition of the financial leases 1 January 2019 is presented in the table below:

(Amounts in NOK 1000) Right-of-use assets 8 588 Lease liabilities 8 588 Effect on equity - Reconciliation Operating lease commitments at 31 December 2018 as diclosed in Groups consolidated financial statements 5 595 Changes to estimate due to excercises of options 1) 3 337 Changes in estimate on agreements less then 12 months 2) 382 Operating lease commitments at nominal value at 31 December 2018 9 314 Exemptions for short-term leases (less than 12 months) (382) Excemptions for low-value leases (less than 50 000 NOK) - Changes to lease agreements due to price adjustments 153 Discounted using incremental borrowing rate at 1 January 2019 (497) Lease liabilities recognised at 1 January - initial recognition 8 588

1) Several options have been exercised on rental agreements that was not assessed "reasonably certain" on the time of the financial disclosure of 31 December 2018 figures.

2) Agreements less than 12 months were not included in the figure at year end 2018

Right-of-use assets

The Group's right-of-use assets are exclusively identified as office rentals. Leases of private cars for exclusive use by named employees in Sweden, and where these employees have the right and commitment to decide to buy out these cars at residual value at either termination of employment or end of contract period, thus the power of directing the use of the asset rests with the employee. Hence, the agreements do not fulfill the criteria for a lease contract according to IFRS 16. Total operating expenses on these contracts was NOK 1 095 thousand in 2018.

Offices Offices
(Amounts in NOK 1000) Sweden Norway Total
Acquisition cost 1 January 2019 (intial recognition) 4 826 3 762 8 588
Addition of right-of-use assets - 18 264 18 264
Currency exchange differences (225) - (225)
Acquisition cost 30 September 2019 4 601 22 026 26 627
Depreciation
Accumulated depreciation 30 September 2019 1 071 2 901 3 972
Carrying amount of right-of-use assets 30 September 2019 3 530 19 125 22 655
Lower of remaining lease term or economc life 1-3 years 1-5 years
Depreciation method Progressive Progressive

Lease liabilities

Offices Offices
(Amounts in NOK 1000) Sweden Norway Total
Undiscounted lease liabilities and maturity of cash outflows
Less than 1 year 1 631 6 717 8 348
1-2 years 1 663 6 542 8 205
2-3 years 418 2 991 3 409
3-4 years - 2 682 2 682
4-5 years - 1 954 1 954
More than 5 years - - -
Total undiscounted lease liabilities at 30 September 2019 3 711 20 887 24 598
Summary of the lease liabilities in the financial statements
At intial recognition 1 January 2019 4 826 3 762 8 588
New lease liabilities recognised in the year - 18 264 18 264
Cash payment of the lease liabilities (1 071) (2 901) (3 972)
Currency exchange differences (225) - (225)
Total lease liabilities 30 September 2019 3 530 19 125 22 655
Current lease liabilities 1 509 6 017 7 527
Non-current lease liabilities 2 020 13 108 15 128
Cash outflows for lease liabilities (1 071) (2 901) (3 972)
Interest expense on lease liabilities (131) (252) (383)
Total cash outflows for leases (1 202) (3 153) (4 355)

The right-of-use assets are recognised at the estimated present value of the leasing liabilities as calculated at the date of initial recognition. Contracts with options for extensions that would, with reasonably certainty, be exercised, are estimated at net present value including the optional rental period. Contracts with penalties if options for extensions not are exercised and where the certainty for exercising the options is assessed as not reasonable, the estimated or actual penalty amounts are provided for and treated as a part of the rental cost of the contracts. The amount is decomposed to depreciation, installment and interest.

The initial recognition of right-of-use assets and borrowings following the implementation of IFRS 16 are non-cash transactions which are excluded from the Statement of Cash Flow.

NOTE 10 INTEREST BEARING DEBT

A NOK 110 million Revolving Credit Facility ("RCF") with SpareBank 1 SR-Bank ASA was entered into by the Company in October 2017. The RCF may be utilised by each member of the Group having acceded to the cash pooling account system related to the RCF.

The RCF was renewed with the same conditions during Q2 2019. The term of the RCF is two years, after which it is subject to renewal. The total payable interest rate is based on 3 months NIBOR in addition to an agreed margin of 2.85% per annum. The interest calculation is based on the net of cash and overdraft. The quarterly charge for the credit facility is 0.25% of the granted credit. Under the RCF, the Company has pledged security over the shares, inventory, insurance payouts and accounts receivable in Webstep AS and negative pledge over the shares in Webstep AB. The covenants for the RCF are: 1) Group equity ratio >30 per cent, measured quarterly, and 2) NIBD / EBITDA ratio maximum 3, measured quarterly, rolling 12 months. Alternative performance measures are described in note 12. The cash pooling account system is reported as one net figure, either asset or debt, depending on the net figure, to reflect the actual interest-bearing figure at balance date.

NOTE 11 OTHER SHORT-TERM DEBT

Other short-term debt mainly consists of two components; 1) accrued salaries for the past month, for payment to employees in accordance with the salary model and 2) accrued holiday pay as required by law, for payment to employees in June every year.

NOTE 12 ALTERNATIVE PERFORMANCE MEASURES

Webstep discloses alternative performance measures as a supplement to the financial statements prepared in accordance with IFRS. Webstep believes that the alternative performance measures provide useful supplemental information to management, investors, equity analysts and other stakeholders. These measures are commonly used and are meant to provide an enhanced insight into the financial development of Webstep's business operations and to improve comparability between periods.

PROFIT MEASURES:

EBITDA is short for Earnings before Interest and other financial items, Taxes, Depreciation and Amortisation and is a term commonly used by equity analysts and investors.

EBITDA per employee is Earnings before Interest and other financial items, Taxes, Depreciation and Amortisation divided by the average number of employees.

Reconciliation of alternative profit performance measures:

Profit measures – EBITDA

Q3 Q3 YTD YTD
(Amounts in NOK 1000) 2019 2018 2019 2018
Operating profit 1 492 8 209 41 282 59 344
Depreciation 2 602 661 7 106 1 936
EBITDA 4 094 8 869 48 388 61 280
Profit measures – EBITDA
Q3 Q3 YTD YTD
(Amounts in NOK 1000) 2019 2018 2019 2018
Operating profit IFRS 16 (2019) 1 492 - 41 282 -
Depreciation IFRS 16 (2019) 2 602 - 7 106 -
EBITDA IFRS 16 4 094 - 48 388 -
Operating profit IAS 17 (former principle for leasing recognition) 1 321 8 209 40 899 59 344
Depreciation IAS 17 (former principle for leasing recognition) 1 071 661 3 134 1 936
EBITDA IAS 17 (former principle for leasing recognition) 2 392 8 869 44 033 61 280
Differences EBITDA IFRS 16 and IAS 17 1 702 - 4 355 -
Reconciliation of differences to EBITDA
Rental expenses recognised as depreciation and interest expenses 1 702 - 4 355 -
Rental expenses recognised as depreciation 1 531 - 3 972 -

BALANCE SHEET AND FINANCING MEASURES

NIBD is short for Net Interest Bearing Debt and is defined as interest bearing debt minus unrestricted cash and cash equivalents. Net Interest Bearing Debt does not include the effects of IFRS 16 Leasing.

Group equity ratio is defined as the total consolidated equity of the Group divided by total assets.

NIBD/EBITDA is calculated as Net Interest Bearing Debt divided by Earnings before Interest and other financial items, Taxes, Depreciation and Amortisation (EBITDA). The ratio is one of the debt covenants of the Company and it is based on the rolling twelve months EBITDA. If the Company has more cash than debt, the ratio can be negative. The leverage ratio does not include the effects of IFRS 16 Leasing, as covenants are based on frozen GAAP. Reconciliation of Alternative Performance Balance Sheet and Financing Measures:

Net interest bearing debt (NIBD)

(Amounts in NOK 1000) Q3
2019
Q3
2018
1 Jan
2019
31 Dec
2018
Cash and cash equivalents (minus indicates positive amount) (8 864) (4 237) (33 478) (33 478)
Restricted cash 473 297 459 459
Debt to credit institutions - 41 521 - -
Net interest bearing debt (NIBD) (8 391) 37 581 (33 019) (33 019)
Group equity ratio
(Amounts in NOK 1000)
Q3
2019
Q3
2018
1 Jan
2019
31 Dec
2018
Total equity
Total assets
362 438
509 832
357 327
534 612
376 574
535 023
376 574
535 023
Group equity ratio 0.71 0.67 0.70 0.70

Group equity ratio covenant threshold > 0,3

NIBD/EBITDA

(Amounts in NOK 1000) Q3 Q3 1 Jan 31 Dec
2019 2018 2019 2018
EBITDA rolling 12 months 61 548 66 856 78 795 78 795
NIBD (8 391) 37 581 (33 019) (33 019)
NIBD/EBITDA (0.14) 0.56 (0.42) (0.42)

NIBD/EBITDA covenant threshold < 3

WEBSTEP ASA

Visitor address: Lilleakerveien 8 NO-0283 OSLO NORWAY

Mailing address:

PB 272 Lilleaker NO-0216 Oslo NORWAY

IR-contact:

Liv Annike Kverneland E: [email protected] T: +47 911 51 110

www.webstep.com

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