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Webstep

Quarterly Report Feb 17, 2021

3788_rns_2021-02-17_d98d4059-0293-4ef0-b3a9-fb9b673c27de.pdf

Quarterly Report

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INTERIM REPORT Q4 and Full Year 2020 WEBSTEP ASA

Q4 HIGHLIGHTS

  • Revenue growth continued in Q4:
  • o Q4: NOK 188.4 million (NOK 176.8 million)
  • o FY 2020: NOK 690.0 million (NOK 660.5 million)
  • EBIT:
  • o Q4: NOK 10.9 million (NOK 7.8 million)
  • o FY 2020: NOK 50.0 (NOK 49.1 million)
  • Headcount:
  • o Q4 end of period: 415 employees (409 employees)
  • o Q4 change: -3 employees (-0.7 per cent)
  • EBIT in Q4 impacted by one-off costs related to CEO transition (NOK 3.6 million) and provision for loss on receivables (NOK 1.9 million)
  • Four-year contract of approximately NOK 100 million signed with the Norwegian Courts Administration
  • Solid financial position and positive outlook support dividend proposal of NOK 1.60 per share

Events after the reporting date:

  • New CEO, Save Asmervik, appointed internally
  • Expected headcount of approximately 430 end of Q1 2021

KEY FIGURES

CONSOLIDATED

Q4 Q4 Y/Y FY FY Y/Y
(Amounts in NOK million) 2020 2019 change 2020 2019 change
Sales revenues 188.4 176.8 6.6% 690.0 660.5 4.5%
EBITDA 14.3 12.0 19.4% 63.9 60.4 5.8%
EBITDA margin 7.6% 6.8% 0.8 pts 9.3% 9.1% 0.2 pts
EBIT 10.9 7.8 39.9% 50.0 49.1 1.8%
EBIT margin 5.8% 4.4% 1.4 pts 7.2% 7.4% (0.2 pts)
Net profit 7.8 5.2 50.6% 36.7 36.1 1.8%
Net cash flow (13.6) 16.6 182.0% 14.3 (8.0) 277.9%
Earnings per share (NOK) 0.29 0.20 46.4% 1.38 1.36 1.2%
Earnings per share, fully diluted (NOK) 0.29 0.20 46.3% 1.38 1.36 1.2%
Number of employees, average (FTE) 411 405 1.4% 410 397 3.2%
Number of employees, end of period 415 409 1.5% 415 409 1.5%
Number of work days, Norway (excl. vacation) 63 62 252 249
Number of work days, Sweden (excl. vacation) 63 62 252 251
EBITDA per average employee (NOK thousand) 34.9 29.7 17.5% 155.9 152.2 2.4%
EBIT per average employee (NOK thousand) 26.6 19.3 37.7% 122.0 132.8 (8.2%)

WEBSTEP ASA | INTERIM REPORT Q4 2020

NORWAY

Q4 Q4 Y/Y FY FY Y/Y
(Amounts in NOK
million)
2020 2019 change 2020 2019 change
Sales revenues 158.5 152.2 4.1% 583.9 570.3 2.4%
EBIT 8.8 6.9 27.0% 41.6 46.7 (10.9%)
EBIT margin 5.5% 4.6% 0.9 pts 7.1% 8.2% (1.1 pts)
Number of employees, average (FTE) 349 343 1.7% 348 337 3.4%
Number of employees, end of period 352 346 1.6% 352 346 1.6%
Number of work days, Norway (excl. vacation) 63 62 252 249
EBIT per average employee (NOK thousand) 25.1 20.1 25.1% 119.6 138.8 (13.8%)
SWEDEN
Q4 Q4 Y/Y FY FY Y/Y
(Amounts in NOK million) 2020 2019 change 2020 2019 change
Sales revenues 29.9 24.7 21.2% 106.1 90.2 17.6%
EBIT 2.1 0.9 138.7% 8.4 2.4 250.7%
EBIT margin 7.2% 3.7% 3.5 pts 7.9% 2.7% 5.2 pts
Number of employees, average (FTE) 62 62 0.0% 63 61 3.0%
Number of employees, end of period 63 63 0.0% 63 63 0.8%
Number of work days, Sweden (excl. vacation) 63 62 252 251
EBIT per average employee (NOK thousand) 34.6 14.5 139.0% 134.5 39.5 240.6%

KEY VALUE DRIVERS

Working days (Norway)

Number of employees

FOURTH QUARTER 2020

Webstep reports revenue of NOK 188.4 million and EBIT of NOK 10.9 million for the fourth quarter, up 6.6 per cent and 39.9 per cent from the same period last year. A four-year framework agreement with the Norwegian Courts Administration with an estimated sales value of approximately NOK 100 million was signed in December. Strong financial position and positive outlook support dividend proposal of NOK 1.60 per share.

Webstep ASA ("the Group" or "Webstep") recorded consolidated revenues in the fourth quarter of NOK 188.4 million, up by 6.6 per cent from 176.8 million in the same quarter last year. For the full year revenues increased by 4.5 per cent, from NOK 660.5 million in 2019 to NOK 690.0 million in 2020. Revenue growth was driven by increased headcount and higher hourly rates.

EBIT for the fourth quarter amounted to NOK 10.9 million, up from NOK 7.8 million in the corresponding quarter 2019. One-off costs related to the CEO transition (NOK 3.6 million) and an extraordinary provision for loss on receivables related to a single customer (NOK 1.9 million) incurred in the fourth quarter. EBIT for the full year amounted to NOK 50.0 million, up from NOK 49.1 million in 2019. Both fourth quarter and full year EBIT were impacted by increased headcount which has resulted in higher revenues, but also increased personnel cost. The COVID-19 salary program introduced in March, combined with slightly lower utilization following the COVID-outbreak and the turbulence in the oil related industries, had a negative impact on the EBIT-margin for the full year. The increased personnel cost has partly been offset by cost savings as a result of COVID-19 restrictions.

The EBIT margin was 5.8 per cent (4.4 per cent) for the fourth quarter, and 7.2 per cent (7.4 per cent) for the full year. Net profit for the fourth quarter was NOK 7.8 million (NOK 5.2 million), and NOK 36.7 million (NOK 36.1 million) for the full year.

Webstep had 415 employees at the end of 2020, a decrease of 3 employees from the last quarter and an increase of 6 employees the last twelve months. Webstep has continued to recruit new employees throughout the COVID-19 period, but the recruitment activities slowed down during the second quarter which had an impact on the number of employees onboarded in the fourth quarter.

The financial position 31 December was strong, with total equity of NOK 380.2 million (NOK 371.6 million), corresponding to an equity ratio of 64.3 per cent (65.7 per cent). Cash and cash equivalents 31 December were NOK 39.7 million (NOK 25.5 million) and the Group had an unutilized revolving credit facility of NOK 110.0 million in Norway and SEK 5.0 million in Sweden. The Group had a net cash flow of NOK -13.6 million (NOK 16.6 million) in the fourth quarter and NOK 14.3 million (NOK -8.0 million) for the full year. The fourth quarter cash flow included a dividend of NOK 42.7 million.

Webstep Sweden has continued the positive development with increased revenues and profitability during the fourth quarter. A positive currency effect impacted revenues and EBIT contribution from Webstep Sweden to the consolidated figures in the fourth quarter and 2020.

Webstep enjoys a strong position in an attractive growth market and enters 2021 with a very robust order book. The ongoing projects and newly won contracts build a solid foundation for the coming quarters. The recruitment drive has picked up to further strengthen the organization and enhance revenue growth.

In February 2021, Save Asmervik was appointed the new CEO of the company. Mr. Asmervik previously held the position as regional director for Webstep. He has been with the company for ten years, and has created an impressive growth story within Webstep with the success of the office in Trondheim.

The dividend policy remains unchanged, and the board of directors intend to propose a dividend of NOK 1.60 representing 117 per cent of the annual net profit of the Group for 2020.

FINANCIAL REVIEW

PROFIT AND LOSS

Fourth quarter

Fourth quarter consolidated revenues were NOK 188.4 million (NOK 176.8 million), up 6.6 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 fourth quarter of 2020 was 411 (405) and the number of working days was 63 (62) in Norway and Sweden. Revenues from own consultants increased by 7.7 per cent to NOK 164.9 million, while revenues from subcontractors decreased by 1.1 per cent to NOK 23.5 million compared to the same quarter last year. The revenue growth is driven by increased number of consultants and higher hourly rates but is offset by slightly lower utilization compared to normal levels for Webstep.

Cost of services and goods sold, mostly from use of subcontractors, amounted to NOK 23.3 million (NOK 22.6 million) for the quarter.

Salaries and personnel costs 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. Salaries and personnel costs amounted to NOK 139.5 million (NOK 129.3 million) for the quarter. The increase from 2019 is explained by higher revenue-based salaries for consultants, increase caused by higher minimum base salary and one-off costs related to the CEO transition.

Other operating expenses amounted to NOK 11.3 million (NOK 12.8 million) for the quarter. The decrease from 2019 is explained by reduced costs for travel, courses, conferences, social events, etc. as a result of COVID-19 restrictions, partly offset by the abovementioned increased provision for loss on receivables. Depreciation and impairment for the quarter amounted to NOK 3.4 million (NOK 4.2 million).

The newly established business area, Webstep Solutions, continued strong signings and counted 17 employees at the end of the fourth quarter. The team is fully engaged in creating new opportunities, enhancing and broadening the partner network and delivering their services to clients. Revenues from Webstep Solutions in the fourth quarter amounted to NOK 5.1 million, while total costs amounted to NOK 6.6 million. NOK 1.7 million of total costs relates to the solution Samla. Samla is a reporting system to visualize key population metrics and changes in demography for municipalities. The solution is developed by Webstep consultants in cooperation with the Norwegian municipality, Larvik, and was launched in February 2021. The subscription based solution will be introduced to other municipalities in Norway and Sweden. The investment in Samla has not been capitalized but recorded as operating costs in the income statement, and are net of government funding from "SkatteFUNN" of NOK 0.3 million.

The Group uses earnings before interest and taxes (EBIT) and earnings before interest, taxes, depreciation and amortization (EBITDA) as alternative performance measures, as described in note 15 to the interim report. Total consolidated EBIT in the fourth quarter amounted to NOK 10.9 million (NOK 7.8 million) and EBITDA amounted to NOK 14.3 million (NOK 12.0 million).

Net financial costs were NOK 0.8 million (NOK 0.7 million) and income tax amounted to NOK 2.2 million (NOK 1.9 million) for the quarter. Net profit for the fourth quarter was NOK 7.8 million (NOK 5.2 million).

Full year

Full year 2020 consolidated revenues were NOK 690.0 million (NOK 660.5 million), up 4.5 per cent from 2019. The average number of employees 2020 was 410 (397) and the number of working days was 252 (249) and 252 (251) in Norway and Sweden, respectively. Revenues from own consultants increased by 6.3 per cent to NOK 608.6 million, while revenues from subcontractors decreased by 7.6 per cent to NOK 81.4 million compared to 2019. The COVID-19 outbreak affected revenues negatively by approximately NOK 13 million in the first half year, and the turbulence in the oil related industries has had a further negative effect on utilization continuing into the second half of 2020. This relates only to the business in Norway, and mainly to the offices on the west coast.

Cost of services and goods sold, mostly from use of subcontractors, amounted to NOK 78.9 million (NOK 84.2 million) for the full year.

Salaries and personnel costs amounted to NOK 513.2 million (NOK 474.2 million) for the full year. The increase from 2019 is explained by higher revenue-based salaries for consultants, increase caused by a COVID-19 salary security program and sales- and management personnel employed in the last half of 2019. The increase has been partly offset by government grants following the reduction in social security contribution and extended family care benefit refunds amounting to NOK 5.0 million, and reduced social activity costs following the COVID-19 restrictions.

Other operating expenses amounted to NOK 34.0 million (NOK 41.7 million) for the full year. The decrease from 2019 is explained by reduced costs for travel, courses, conferences, social events, etc. as a result of COVID-19 restrictions, partly offset by increased provision for loss on receivables.

Depreciation and impairment amounted to NOK 13.9 million (NOK 11.3 million) for the full year. The main reason for the increase was the relocation of four Webstep offices, which has contributed to increased lease costs year-on-year.

Revenues from Webstep Solutions for the full year amounted to NOK 11.6 million, while total costs amounted to NOK 19.4 million. A total of NOK 2.7 million has been spent on development of the cloud-based solution, Samla, as mentioned above.

Total consolidated EBIT for the full year amounted to NOK 50.0 million (NOK 49.1 million) and EBITDA amounted to NOK 63.9 million (NOK 60.4 million).

Net financial costs were NOK 2.9 million (NOK 2.5 million) and income tax amounted to NOK 10.3 million (NOK 10.6 million) for the full year. Net profit for the full year was NOK 36.7 million (NOK 36.1 million).

FINANCIAL POSITION AND CASH FLOW

Total assets 31 December amounted to NOK 591.7 million (NOK 565.4 million). Non-current assets were NOK 432.1 million (NOK 428.1 million) and consisted mainly of intangible assets. Intangible assets amounted to NOK 389.8 million (NOK 384.5 million), and comprise primarily of acquisitionrelated goodwill of NOK 385.3 million. Currently, there are no indications that impairment is required for any of the reporting units. Right-of-use assets related to office rentals and car leases have been recognized in the balance sheet at the total amount of NOK 34.8 million (NOK 37.2 million).

Total current assets of NOK 159.5 million (NOK 137.4 million) consisted of trade receivables, other current receivables and cash and short-term deposits. Trade receivables amounted to NOK 108.0 million (NOK 104.8 million). Revenues are invoiced on a monthly basis, and most receivables are due 30 days after invoicing. Other current receivables were NOK 11.8 million (NOK 7.1 million). Cash and short-term deposits amounted to NOK 39.7 million (NOK 25.5 million).

Total equity 31 December was NOK 380.2 million (NOK 371.6 million). The change is mainly related to earnings generated, offset by 2019 dividends paid in 2020. Non-current liabilities amounted to NOK 25.8 million (NOK 29.9 million) and consisted mainly of non-current leasing liabilities of NOK 24.1 million (NOK 28.3 million). Current liabilities of NOK 185.6 million (NOK 163.9 million) consisted of current leasing liabilities, trade payables, tax payables, social taxes and VAT and other short-term liabilities.

Cash flow from operations for the full year amounted to NOK 63.3 million (NOK 41.8 million). The increased cash flow from operations for the full year

compared to 2019 can primarily be explained by change in trade and other liabilities. The Webstep Group had an unutilized Revolving Credit Facility (RCF) with SpareBank1 SR-Bank of NOK 110 million and SEK 5 million with SEB. The Group has not been in breach with the covenants of the RCF during the fourth quarter of 2020. See note 11 and 15 for further details.

ORGANIZATION

Webstep had 415 employees at the end of the fourth quarter, a decrease of 3 employees the last quarter and an increase of 6 employees the last twelve months. The employees are distributed across 9 regional offices in major cities in Norway and Sweden. Webstep believes in the power of local business and the decentralized model is based on strong local presence. The regional offices provide expertise and capacity to local clients, while leveraging the full organizational capacity.

Webstep's consultants have on average more than 10 years of relevant experience. This creates a solid foundation for a strong professional environment and high-quality deliveries. The Webstep work culture is driven by the values of being skilled, innovative, generous and uncomplicated.

During the COVID-19 lock-down, the employees were encouraged to keep delivering services to the customers as long as this was possible and did not compromise the security or well-being of the employees, the customers or their families. In Sweden, in response to the Swedish authorities' recommendations, the employees adopted home offices when possible. During the fourth quarter, most of the employees have continued to work from home.

The Webstep organization has been leveraging collaborative tools and video conferencing for many years. The collaborative culture among employees has ensured a smooth transition to working from home as the new normal, and the customers have also adapted well to the situation.

Webstep has decided to move its headquarters in Oslo to the new IT powerhouse, Rebel, in central Oslo, which will open in September 2021. Rebel will host both well established tech companies, such as Wesbtep, smaller start-ups, academia and other organizations within tech such as Digital Norway.

Building and sharing of competence and skills is vital to Webstep. The concept «Webstep Community» fuels initiatives across Webstep, labeled Webstep Discover, Webstep Learn and Webstep Create. On-site live productions all over Webstep are made digitally available for all employees, as sources of inspiration, learning and innovation.

To further strengthen the community feeling among Webstep employees during the Covid-19 out-break, various digital social initiatives emerged across regions. From virtual "Friday meetups", to joint Personal Trainer digital sessions with colleagues across regions, the ingenuity and creativity shown has been great.

In February 2021, Save Asmervik was appointed the new CEO of the company. Mr. Asmervik previously held the position as regional director for Webstep. He has been with the company for ten years, and has created an impressive growth story within Webstep with the success of the office in Trondheim.

MARKET UPDATE

The market for IT services in Norway and Sweden is strong, and the competition in the recruitment market is fierce. In 2019, Webstep launched a new strategy aimed at expanding its go-to-market model in order to reach an even larger share of the market, as well as further expanding the recruitment universe.

To provide large and digitally mature clients with hand-picked technology experts who in an efficient and effective manner help to solve the client's challenges, is the traditional Webstep go-to-market model. The projects are normally run and managed by the clients. The experts employed by Webstep handle a broad range of technology platforms and disciplines from the traditional programming languages such as .Net and Java, to highly sought-after services such as Cloud migration and advanced analytics of big data.

Since the clients to an increasing extent request full scale developer teams ("teams as a service") or projects and end-to-end solutions that are managed and executed by their IT service vendors, Webstep has invested in the expertise and methodologies required in order to be a provider of these services.

These investments have started to yield results, such as the award of a significant framework agreement with the Norwegian Courts Administration in December 2020. What distinguishes this delivery from the traditional Webstep model, is the fact that Webstep will provide the client with full scale development teams as opposed to single consultants for expert roles. Autonomous development and operations teams from Webstep will be responsible for the Java based applications, and work as an integral part of the Norwegian Courts Administration's own IT organization.

The newly won team and project delivery wins, such as the agreements with the Norwegian Courts Administration and Enova, also help Webstep attract new employees. These engagements provide the consultants with security and predictability, they give the consultants the opportunity to work closely with other colleagues and the projects are technically challenging and interesting for ambitious IT experts.

SEGMENTS

Webstep has two reporting segments; Norway and Sweden. Norway accounts for around 85 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 digitization, cloud services and integration. In addition, Webstep is steadily taking advantage of key fast-growing markets, including Internet of Things ("IoT"), machine learning, IT security, robotics and analytics.

Total operating revenues for the fourth quarter came to NOK 158.5 million (NOK 152.2 million), up 4.1 per cent from the corresponding quarter last year. More employees and higher hourly rates compared to 2019 impacted revenue, partly offset by less use of subcontractors. EBIT for the fourth quarter came to NOK 8.8 million (NOK 6.9 million). EBIT is impacted by higher revenue from consultants, partly offset by higher personnel cost and one-off costs related to the CEO transition, increased provision for loss on receivables and cost savings from reduced travel activity and social activities. A total of NOK 1.7 million has been spent on development of the cloud-based solution, Samla, as mentioned above.

Full year

Total operating revenues for the full year came to NOK 583.9 million (NOK 570.3 million), up 2.4 per cent compared to 2019. More employees, fewer holidays and higher hourly rates compared to 2019 impacted revenue, but this was partly offset by less use of subcontractors and lower utilization. The COVID-19 outbreak affected revenues negatively by approximately NOK 13 million in the first half year, and the turbulence in the oil related industries has had a further negative effect on utilization continuing into the second half of 2020. EBIT for the full year came to NOK 41.6 million (NOK 46.7 million). The reduced EBIT is mainly explained by increased salary costs due to increased revenues from consultants combined with the COVID-19 salary program and the recruitment of sales- and management personnel. Increased lease costs, increased provision for loss on receivables and decreased profit from subcontractors have also impacted EBIT. Cost savings, reduced social security contributions and increased care benefit refunds have partly offset the abovementioned impact of cost increases from the COVID-19 salary program. Reduced social security contributions and increased care benefit refunds amounted to NOK 4.3 million for the full year.

Webstep Norway had 352 employees at the end of December (346 employees). The average number of employees in the quarter was 349 (343) and 348 (337) for the full year.

SWEDEN

Webstep Sweden has offices in Stockholm, Malmö, and Uppsala. 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 digitalization offering.

Fourth quarter

Operating revenues for the fourth quarter came to NOK 29.9 million (NOK 24.7 million), an increase of 21.2 per cent. Revenues were primarily impacted by higher utilization, increased revenues from subcontractors and a positive currency effect. Adjusted for fluctuation in exchange rates, revenue increased by 10.1 per cent from the corresponding quarter last year. EBIT came to NOK 2.1 million (NOK 0.9 million) for the quarter. The increased EBIT is driven by higher revenues from own consultants and cost savings.

Full year

Operating revenues for the full year came to NOK 106.1 million (NOK 90.2 million), an increase of 17.6 per cent. Revenues were primarily impacted by more employees, higher utilization and a positive currency effect. Adjusted for fluctuation in exchange rates, revenue grew by 6.4 per cent compared to 2019. EBIT came to NOK 8.4 million (NOK 2.4 million) for the full year. The increased EBIT is driven by higher revenues from own consultants and cost savings. The support offered by the government has had a positive impact on EBIT, in particular through lower social security contributions amounting to NOK 0.7 million for 2020.

Webstep Sweden had 63 employees at the end of December (63 employees). The average number of employees in the quarter was 62 (62) and 63 (61) for the full year.

OUTLOOK

As a result of successful recruitment activities in the fourth quarter, the first quarter headcount in 2021 is expected to increase to approximately 430 employees at the end of the quarter. The company continues to prove that it has the capacity and expertise to deliver comprehensive projects and solutions in line with the previously communicated growth strategy, which also attracts a broader range of employees.

The acceleration in the digital shift following the pandemic, creates opportunities for IT expert companies such as Webstep. The ongoing projects and the newly won contracts are expected to build a solid foundation for the coming quarters. Recruitment activities have picked up significantly in the fourth quarter to further strengthen the organization and enhance revenue growth. Focus will be on organic growth in existing locations through recruitment and increased utilization.

THE BOARD OF DIRECTORS AND CEO OF WEBSTEP ASA

OSLO, 16 FEBRUARY 2021

Trond Klethagen Johannessen Kjetil Bakke Eriksen Toril Nag Chair of the board Board member Board member

Siw Ødegaard Trygve Christian Moe Save Asmervik Board member Board member Chief Executive Officer

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Q4 Q4 FY FY
(Amounts in NOK 1000) Note 2020 2019 2020 2019
Sales revenues 4,5 188,400 176,812 689,987 660,513
Total revenues 188,400 176,812 689,987 660,513
Cost of services and goods 23,283 22,639 78,918 84,200
Salaries and personnel cost 13 139,532 129,349 513,151 474,172
Depreciation and amortization 8,9 3,419 4,185 13,916 11,291
Other operating expenses 11,254 12,808 33,998 41,738
Operating profit(loss) 10,912 7,831 50,004 49,113
Net financial items (842) (723) (2,908) (2,478)
Profit before tax 10,070 7,108 47,097 46,635
Income tax expenses 2,239 1,863 10,348 10,550
Profit for the period 7,832 5,245 36,749 36,085
Earnings per share (NOK) 6 0.29 0.20 1.38 1.36
Earnings per share, fully diluted (NOK) 6 0.29 0.20 1.38 1.36
Other comprehensive income:
Currency translation differences (563) 1,483 7,892 (1,962)
Other comprehensive income for the period, net of tax (563) 1,483 7,892 (1,962)
Total comprehensive income for the period, net of tax 7,268 6,728 44,641 34,123
Attributable to:
Shareholders in parent company 7,268 6,728 44,641 34,123

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 Dec 31 Dec
(Amounts in NOK 1000) Note 2020 2019
Assets
Intangible assets 8 389,832 384,522
Fixed assets 6,490 5,917
Right-of-use assets 9 34,807 37,156
Non-current financial assets 10 10
Deferred tax assets 998 454
Total non-current assets 432,137 428,059
Trade receivables 10 107,972 104,797
Other current receivables 10 11,827 7,112
Cash
and short-term deposits
39,724 25,454
Total current assets 159,524 137,363
Total assets 591,660 565,422
Equity
Shareholders' equity 380,184 371,645
Liabilities
Non-current leasing liabilities 9 24,082 28,335
Deferred tax 1,755 1,539
Total non-current liabilities 25,838 29,874
Current leasing liabilities 10,724 8,821
Trade and other payables 9 20,862 18,901
Tax payable 9,923 8,587
Social taxes and VAT 60,525 56,399
Other short-term liabilities 12 83,604 71,195
Total current liabilities 185,639 163,903
Total liabilities 211,476 193,777
Total equity and liabilities 591,660 565,422
13

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Total
Foreign
currency
attributable
to equity
Non
Issued Treasury Share translation Retained holders of controlling Total
(Amounts in NOK 1000) capital shares premium reserve earnings the
parent
interest equity
1 January 2019 26,967 (486) 153,960 10,282 185,851 376,574 - 376,574
Profit for the period - - - - 36,085 36,085 - 36,085
Sales of treasury shares - 193 4,304 - - 4,497 - 4,497
Other comprehensive income/(loss) - - - (1,962) - (1,962) - (1,962)
Share incentive program - - (1,354) - 173 (1,181) - (1,181)
Dividends - - - - (42,369) (42,369) - (42,369)
31 December 2019 26,967 (293) 156,910 8,321 179,740 371,645 - 371,645
Profit for the period - - - - 36,749 36,749 - 36,749
Other comprehensive income/(loss) - - - 7,892 - 7,892 - 7,892
Share incentive program - 234 5,110 - 1,232 6,576 - 6,576
Dividends - - - - (42,677) (42,677) - (42,677)
31 December 2020 26,967 (59) 162,020 16,213 175,043 380,184 - 380,184

CONSOLIDATED STATEMENT OF CASH FLOWS

Q4 Q4 FY FY
(Amounts in NOK 1000) Note 2020 2019 2020 2019
Operating activities
Profit/(loss) before tax 10,070 7,108 47,097 46,635
Adjustments for:
Depreciation of property, plant and equipment 8,9 3,419 4,185 13,916 11,291
Net change in trade and other receivables (1,927) (337) (7,891) (3,639)
Net change in trade and other liabilities 13,153 17,360 18,497 6,330
Net foreign exchange differences (84) 267 1,111 (176)
Income tax expenses 1,696 (10,029) (9,395) (18,652)
Net cash flow from operating activities 26,327 18,555 63,335 41,788
Investing activities
Purchase of property and equipment (692) (1,326) (3,974) (3,670)
Net cash flow from investing activities (692) (1,326) (3,974) (3,670)
Financing activities
Repayments of lease liabilities 9 (2,182) (3,116) (8,989) (7,088)
Payment of dividends (42,677) - (42,677) (42,369)
Sale of treasury shares, EIP and incentive program 6 5,612 2,477 6,575 3,316
Net cash flows from financing activities (39,248) (639) (45,092) (46,142)
Net increase/(decrease) in cash and cash equivalents (13,613) 16,590 14,270 (8,024)
Cash and cash equivalents at the beginning of the period 53,337 8,864 25,454 33,478
Cash and cash equivalents at the end of the period 39,724 25,454 39,724 25,454

NOTES TO THE CONSOLIDATED INTERIM 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 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 digitalization through the offering of cutting-edge IT expertise. The Group's core offerings are digitalization, cloud migration and integration, in addition to its other new focus areas Internet of Things (IoT), machine learning, IT security, robotics and analytics.

NOTE 2 BASIS OF PREPARATION AND STATEMENT

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 fourth quarter and the full year of 2020 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 2019. The accounting policies applied are consistent with those applied and described in the consolidated annual financial statements for 2019, 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 fourth quarter were approved by the Board of Directors and the CEO 16 February 2021.

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. Changes to IFRSs which have been effective from 1 January 2020 have had no material impact on the Group's financial statements.

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 2019 and as described in note 3 to the 2019 statements.

NOTE 4 SEGMENT INFORMATION

The Group has currently two reportable segments: Norway and Sweden. 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 EBIT performance. Assets and liabilities are not allocated between the segments.

Elimination consists of hiring of one consultant from Sweden to Norway and management fee from Sweden to Norway.

Q4 2020

(Amounts in NOK 1000) Norway Sweden Elimination Total
Revenues 159,319 29,943 (861) 188,400
EBITDA 11,601 2,730 - 14,331
EBIT 8,764 2,148 - 10,912
EBIT margin 5.5% 7.2% - 5.8%

FY 2020

(Amounts in NOK 1000) Norway Sweden Elimination Total
Revenues 586,646 106,105 (2,764) 689,987
EBITDA 52,750 11,170 - 63,920
EBIT 41,587 8,417 - 50,004
EBIT margin 7.1% 7.9% - 7.2%

Q4 2019

(Amounts in NOK 1000) Norway Sweden Elimination Total
Revenues 152,880 24,658 (727) 176,812
EBITDA 9,706 2,310 - 12,016
EBIT 6,930 901 - 7,831
EBIT margin 4.5% 3.7% - 4.4%

FY 2019

(Amounts in NOK 1000) Norway Sweden Elimination Total
Revenues 572,718 90,218 (2,424) 660,513
EBITDA 55,493 4,911 - 60,404
EBIT 46,700 2,413 - 49,113
EBIT margin 8.2% 2.7% - 7.4%

In the following table, the major revenue lines are disaggregated by geographical areas. Figures are local currencies and does not include eliminations except Group.

Q4 2020

(Amounts in 1000) Norway Sweden Group
IT-related consulting services 159,169 28,590 188,400
Other 150 - -
Total revenues from contracts with
customers
159,319 28,590 188,400

FY 2020

(Amounts in 1000) Norway Sweden Group
IT-related consulting services
Other
586,496
150
122 103,013 689,862
125
Total revenues from contracts with
customers
586,646 103,135 689,987

Q4 2019

(Amounts in 1000) Norway Sweden Group
IT-related consulting services 152,728 25,956 176,804
Other 152 - 8
Total revenues from contracts with
customers
152,880 25,956 176,812

FY 2019

(Amounts in 1000) Norway Sweden Group
IT-related consulting services 572,566 96,892 660,434
Other 152 85 79
Total revenues from contracts with
customers
572,718 96,977 660,513

NOTE 5 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 recognized 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. Q4 2020 had one more working days compared to Q4 2019. The full year 2020 had three more working days compared to last year in Norway, while Sweden had two more working days compared to last year.

NOTE 6 EARNINGS PER SHARE

Under the Long-term incentive programme (LTIP), share options of the parent are granted to senior executives of the Group. The exercise price of the share options is equal to the market price of the underlying shares on the date of grant. 468,992 options were granted 18 November 2019 and 546,000 options were granted 24 November 2020. Following the grant, the total number of outstanding options in the Company is 1,014,992. The share options vest if the senior executive remains employed during the vesting period.

The options granted 18 November 2019 will vest, or have vested, in the following tranches:

  • 117,248 options vested 18 November 2020
  • 117,248 options vest 18 November 2021
  • 234,496 options vest 18 November 2022

The options granted 24 November 2020 will vest in the following tranches:

  • 136,500 options vest 24 November 2021
  • 136,500 options vest 24 November 2022
  • 273,000 options vest 24 November 2023

The exercise price of the options granted 18 November 2019 and 24 November 2020 is NOK 21.50 and 22.73, respectively. The potential dilution through the LTIP accounts for 15,954 shares. None of the vested shares have been exercised.

In the fourth quarter the Company sold a total of 234,074 shares to employees through a share investment program for employees in Webstep's Norwegian entities. The number of treasury shares held by Webstep following the sale of shares to employees in Q4 is 59,559.

Earnings per share

Q4 Q4 FY FY
(Amounts in NOK 1000) 2020 2019 2020 2019
Profit for the period 7,832 5,245 36,749 36,085
Average number of shares
(excl. treasury shares) 26,751 26,561 26,691 26,501
Average number of shares, fully
diluted (excl. treasury shares) 26,767 26,592 26,696 26,572
Earnings per share (NOK) 0.29 0.20 1.38 1.36
Earnings per share, fully diluted
(NOK)
0.29 0.20 1.38 1.36

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 interestbearing liabilities are mainly debt to credit institutions, amounting to NOK 0 (NOK 0 at 31 December 2020). The Group owns a limited amount of treasury shares at quarter end, 59,559, booked at face value.

NOTE 8 INTANGIBLE ASSETS AND GOODWILL

(Amounts in NOK 1000) Goodwill
Norway
Goodwill
Sweden
R&D Total
Cost
1 January 2020 313,575 64,889 7,573 386,037
Additions - - - -
Disposals - - - -
Exchange adjustments - 6,824 - 6,824
31 December 2020 313,575 71,713 7,573 392,861
Depreciation and impairment
1 January 2020 - - (1,515) (1,515)
Impairment - - - -
Depreciation charge for the year - - (1,514) (1,514)
31 December 2020 - - (3,029) (3,029)
Net book value
31 December 2020 313,575 71,713 4,544 389,832
Useful life Infinite Infinite 5
years
Depreciation method N/A N/A Straight line

Goodwill includes the value from acquisition of Webstep AS in 2011 and Webstep AB in 2012, where NOK 313.5 million and NOK 58.6 million was added to goodwill respectively. Goodwill acquired through business combinations has been allocated to two individual cash generating units (CGUs), which are also defined as reportable segments according to note 4. Goodwill is not amortized but tested yearly or when there are indications of impairment. The COVID-19 pandemic is identified as an impairment indicator for the CGUs, and management has estimated the recoverable amount and compared this to the carrying amount for each CGUs. Based on the impairment tests performed, no impairment is identified in 2020.

Capitalized R&D include investments in the strategic initiative Webstep Internet of Things (IoT), where a total of NOK 4.5 million is recognized at balance date. The reclassification and recognition as an intangible asset is based on the management's assessment of future economic benefits from the projects and that the criteria in IAS 38.57 is met.

NOTE 9 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

The Group has applied its weighted average incremental borrowing rate for all the leases, recognized as financial, due to the similar characteristics of the leases. The rate applied is 4.7 per cent and is based on the rate agreed upon in current Revolving Credit Facility and identified as the incremental borrowing rate. The Group's right-of-use assets are exclusively identified as office rentals and company cars in Sweden. The right-of-use assets are recognized 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, instalment and interest.

WEBSTEP ASA | INTERIM REPORT Q4 2020

Right-of-use assets

Company cars Offices Offices
(Amounts in NOK 1000) Sweden Sweden Norway Total
Acquisition cost 1 January 2020 4,441 4,675 35,053 44,169
Addition of right-of-use assets 487 5,369 - 5,856
Currency exchange differences 361.51 422.51 784
Acquisition cost 31 December 2020 5,290 10,467 35,053 50,810
Accumulated depreciation 1 January 2020 1,003 1,470 4,541 7,014
Depreciation for the period 1,164 1,542 6,284 8,989
Accumulated depreciation 31 December 2020 2,166 3,012 10,825 16,003
Carrying amount of right-of-use assets 31 December 2020 3,123 7,455 24,228 34,807

Lower of remaining lease term or economic life 1-3 years 1-3 years 1-5 years Depreciation method Amortization Amortization Amortization

Lease liabilities

Company cars Offices Offices
(Amounts in NOK 1000) Sweden Sweden Norway Total
Undiscounted lease liabilities and maturity of cash outflows
Less than 1 year 2,395 1,930 7,425 11,750
1-2 years 751 1,572 7,602 9,925
2-3 years - 1,588 7,566 9,154
3-4 years - 1,604 4,596 6,200
4-5 years - 1,620 - 1,620
More than 5 years - 135 - 135
Total undiscounted lease liabilities 31 December 2020 3,146 8,449 27,188 38,783

WEBSTEP ASA | INTERIM REPORT Q4 2020

(Amounts in NOK 1000) Company cars
Sweden
Offices
Sweden
Offices
Norway
Total
Summary of the lease liabilities in the financial statements Statement of:
At initial recognition 1 January 2020 Financial position 3,438 3,205 30,512 37,156
New lease liabilities recognized in the year Financial position 487 5,369 - 5,856
Cash payment of the lease liabilities Cash flows (1,164) (1,542) (6,284) (8,989)
Currency exchange differences Financial position 362 423 - 784
Total lease liabilities 31 December 2020 Financial position 3,123 7,455 24,228 34,807
Current lease liabilities Financial position 1,080 3,092 6,552 10,724
Non-current lease liabilities Financial position 2,043 7,486 14,553 24,082
Cash outflows for lease liabilities Cash flows (1,164) (1,542) (6,284) (8,989)
Interest expenses on lease liabilities Comprehensive income (18) (334) (776) (1,128)
Total cash outflows for leases Cash flows (1,182) (1,875) (7,060) (10,117)

NOTE 10 TRADE AND OTHER RECEIVABLES

Trade and other receivables

(Amounts in NOK 1000) 31
Dec
2020
31 Dec
2019
Trade receivables –
net of related parties
110,709 105,614
Provision for bad debt (2,736) (817)
Trade receivables net of provision 107,972 104,797
Prepayments and other receivables 11,827 7,112
Total trade and other receivables 119,799 111,909

All trade and other receivables are due within one year. For receivables due within one year, fair value is equal to nominal amount.

Less than 30 –
60
Above 60
(Amounts in NOK 1000) Total Not due 30 days days days
Trade receivables –
net of related parties
110,709 82,099 23,242 4,103 1,264

NOTE 11 INTEREST-BEARING DEBT

The Group has a NOK 110 million Revolving Credit Facility ("RCF") with SpareBank 1 SR-Bank. The RCF may be utilized by each member of the Group having acceded to the cash pooling account system related to the RCF. The RCF was renewed 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 pay-outs 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 15.

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 12 OTHER SHORT-TERM LIABILITIES

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

NOTE 13 COVID-19 EFFECTS

The Webstep Management introduced a temporary COVID-19 salary program in March to compensate consultants in Norway impacted by cancelled customer projects. The program has an increasing impact on salary costs from March until October. This program has to a large extent been funded by the COVID-19 related cost savings such as savings from reduced travel, events, social activities etc. in addition to the support measures from the government.

An extraordinary provision (NOK 1.9 million) for loss on receivables related to a single customer hit by the Covid-19 pandemic incurred in the fourth quarter.

Webstep has made use of certain relief and support measures available from governments in the countries where Webstep operates to mitigate the effects of COVID-19. Such measures primarily relate to reduced social security contributions, care benefit refunds and delays in payment terms of taxes and other levies. Reduced social security contributions and care benefit refunds in Norway and Sweden have a positive effect on operating profit of NOK 5.0 million in 2020.

NOTE 14 EVENTS AFTER THE END OF THE INTERIM REPORTING PERIOD

In February 2021, Save Asmervik was appointed the new CEO of the company. Mr. Asmervik previously held the position as regional director for Webstep. He has been with the company for 10 years.

98,000 options were granted 10 February 2021 to the new CEO. The exercise price of the options is NOK 23.42. Following the grant, the total outstanding share options in the Company is 1,112,992.

There have been no other events after the balance sheet date significantly effecting the Group's financial position.

NOTE 15 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.

  • EBITDA is short for Earnings before Interest and other financial items, Taxes, Depreciation and Amortization 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 Amortization divided by the average number of employees.
  • EBIT is short for Earnings before Interest and other financial items and Taxes and is a term commonly used by equity analysts and investors.

  • EBIT per employee is Earnings before Interest and other financial items and Taxes divided by the average number of employees.

  • 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 Amortization (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 profit measures:

Profit measures -
EBITDA
Q4 Q4 FY FY
(Amounts in NOK 1000) 2020 2019 2020 2019
Operating profit (EBIT) 10,912 7,831 50,004 49,113
Depreciation 3,419 4,185 13,916 11,291
EBITDA 14,331 12,016 63,920 60,404

WEBSTEP ASA | INTERIM REPORT Q4 2020

Balance sheet and covenant measures:

All figures "frozen GAAP " (IAS 17) according to agreement with Bank.

Net Interest Bearing Debt (NIBD)

31
Dec
31 Dec
(Amounts in NOK 1000) 2020 2019
Cash and cash equivalents (minus indicates positive amount) (39,724) (25,454)
Restricted cash 1,871 786
Debt to credit institutions - -
Net interest bearing debt (37,852) (24,668)
Group equity ratio
31 Dec 31 Dec
(Amounts in NOK 1000) 2020 2019
Total
equity
380,184 371,645
Total assets (excluding right-of-use-assets) 556,854 565,422
Group equity ratio 0.68 0.66
Group equity ratio covenant threshold >
0,3
NIBD/EBITDA
31 Dec 31 Dec
(Amounts in NOK 1000) 2020 2019
EBITDA rolling 12 months (based on frozen GAAP) 53,803 52,732
NIBD (37,852) (24,668)
NIBD/EBITDA (0.70) (0.47)

NIBD/EBITDA covenant threshold < 3

STATEMENT BY THE BOARD OF DIRECTORS AND THE CHIEF EXECUTIVE OFFICER

We confirm to the best of our knowledge that: the consolidated financial statements for the fourth quarter and full year ended 31 December 2020 have been prepared in accordance with IAS as adopted by the EU, as well as additional information requirements in accordance with the Norwegian Accounting Act and generally accepted accounting practice in Norway, and that the information presented in the financial statements gives a true and fair view of the Group's assets, liabilities, financial position and results for the period viewed in their entirety, and that the board of directors' report gives a true and fair view of the development, performance and financial position of the Group, and includes a description of the material risks that the board of directors, at the time of this report, deem might have a significant impact on the financial performance of the Group.

OSLO, 16 FEBRUARY 2021

Trond Klethagen Johannessen Kjetil Bakke Eriksen Toril Nag Chair of the board Board member Board member

Siw Ødegaard Trygve Christian Moe Save Asmervik Board member Board member Chief Executive Officer

APPENDIX – QUARTERLY FIGURES

KEY FIGURES

CONSOLIDATED

Q4 Q3 Q2 Q1 Q4
(Amounts in NOK million) 2020 2020 2020 2019 2019
Sales revenues 188.4 146.2 172.4 183.0 176.8
EBITDA 14.3 6.4 26.7 16.5 12.0
EBITDA margin 7.6% 4.3% 15.5% 9.0% 6.8%
EBIT 10.9 2.8 23.2 13.1 7.8
EBIT margin 5.8% 1.9% 13.5% 7.1% 4.4%
Net profit 7.8 1.7 17.7 9.6 5.2
Net cash flow (13.6) 2.6 11.6 13.7 16.6
Earnings per share (NOK) 0.29 0.06 0.66 0.36 0.20
Earnings per share. fully diluted
(NOK)
0.29 0.06 0.66 0.36 0.20
Number of employees, average (FTE) 411 415 414 410 405
Number of employees, end of period 415 418 414 417 409
Number of work days, Norway (excl. vacation) 63 66 59 64 62
Number of work days, Sweden (excl. vacation) 63 66 60 63 62
EBITDA per average employee (NOK thousand) 34.9 15.3 64.6 40.3 29.7
EBIT per average employee (NOK thousand) 26.6 6.7 56.2 32.0 19.3

SEGMENTS

NORWAY

Q4 Q3 Q2 Q1 Q4
(Amounts in NOK million) 2020 2020 2020 2019 2019
Sales revenues 158.5 124.3 145.7 155.4 152.2
EBIT 8.8 1.7 20.5 10.6 6.9
EBIT margin 5.5% 1.4% 14.0% 6.8% 4.6%
Number of employees, average (FTE) 349 353 351 346 343
Number of employees, end of period 352 357 351 354 346
Number of work days, Norway (excl. vacation) 63 66 59 64 62
EBIT per average employee (NOK thousand) 25.1 5.0 58.3 30.6 20.1
SWEDEN
Q4 Q3 Q2 Q1 Q4
(Amounts in NOK million) 2020 2020 2020 2019 2019
Sales revenues 29.9 21.8 26.7 27.6 24.7
EBIT 2.1 1.0 2.8 2.5 0.9
EBIT margin 7.2% 4.7% 10.4% 8.9% 3.7%
Number of employees, average (FTE) 62 62 63 64 62
Number of employees, end of period 63 61 63 64 63
Number of work days, Sweden (excl. vacation) 63 66 60 63 62
EBIT per average employee (NOK thousand) 34.6 16.6 43.8 38.4 14.5

CONSOLIDATED INCOME STATEMENT

Q4 Q3 Q2 Q1 Q4
(Amounts in NOK 1000) 2020 2020 2020 2020 2019
Sales revenues 188,400 146,173 172,394 183,020 176,812
Total revenues 188,400 146,173 172,394 183,020 176,812
Cost of services and goods 23,283 16,013 19,822 19,799 22,639
Salaries and personnel cost 139,532 117,850 119,110 136,659 129,349
Depreciation and
amortization
3,419 3,586 3,481 3,430 4,185
Other operating expenses 11,254 5,952 6,737 10,056 12,808
Operating profit(loss) 10,912 2,772 23,244 13,076 7,831
Net financial items (842) (649) (604) (813) (723)
Profit before tax 10,070 2,123 22,640 12,263 7,108
Income tax expenses 2,239 461 4,961 2,687 1,863
Profit for the period 7,832 1,662 17,679 9,576 5,245

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 Dec 30 Sep 30 Jun 31 Mar 31 Dec
(Amounts in NOK 1000) 2020 2020 2020 2020 2019
Intangible assets 389,832 390,664 390,335 390,768 384,522
Fixed assets 6,490 6,658 6,483 6,784 5,917
Right-of-use assets 34,807 31,034 33,332 35,589 37,156
Non-current financial assets 10 10 10 10 10
Deferred tax assets 998 454 454 454 454
Total non-current assets 432,137 428,820 430,613 433,605 428,059
Trade receivables 107,972 113,567 105,128 120,446 104,797
Other current receivables 11,827 4,306 6,551 7,834 7,112
Cash and short-term deposits 39,724 53,337 50,759 39,147 25,454
Total current assets 159,524 171,210 162,438 167,427 137,363
Total assets 591,660 600,030 593,051 601,032 565,422
Total equity 380,184 409,982 407,229 389,267 371,645
Non-current leasing liabilities 24,082 21,542 23,727 25,948 28,335
Deferred tax 1,755 1,711 1,694 1,696 1,539
Total non-current liabilities 25,838 23,253 25,422 27,644 29,874
Current leasing liabilities 10,724 9,493 9,604 9,641 8,821
Trade and other payables 20,862 15,568 15,911 17,016 18,901
Tax payable 9,923 5,464 5,236 5,455 8,587
Social taxes and VAT 60,525 61,526 69,336 58,984 56,399
Other short-term debt 83,604 74,744 60,314 93,026 71,195
Total current liabilities 185,639 166,795 160,400 184,121 163,903
Total liabilities 211,476 190,048 185,822 211,765 193,777
Total liabilities and equity 591,660 600,030 593,051 601,032 565,422

WEBSTEP ASA | INTERIM REPORT Q4 2020

CONSOLIDATED STATEMENT OF CASH FLOWS

Q4 Q3 Q2 Q1 Q4
(Amounts in NOK 1000) 2020 2020 2020 2019 2019
Operating activities
Profit/(loss) before tax 10,070 2,123 22,640 12,263 7,108
Adjustments for:
Depreciation of property, plant and equipment 3,419 3,586 3,481 3,430 4,185
Net change in trade and other receivables (1,927) (6,195) 16,602 (16,371) (337)
Net change in other liabilities 13,153 6,278 (23,465) 22,531 17,360
Net foreign exchange differences (84) 135 14 1,046 267
Income tax expenses 1,696 (219) (5,206) (5,666) (10,029)
Net cash flow from operating activities 26,327 5,710 14,065 17,233 18,555
Investing activities
Purchase of property and equipment (692) (1,036) (557) (1,688) (1,326)
Net cash flow from investing activities (692) (1,036) (557) (1,688) (1,326)
Financing activities
Repayments of lease liabilities (2,182) (2,345) (2,253) (2,210) (3,116)
Change in bank overdraft - - - - -
Payment of dividends (42,677) - - - -
Sale of treasury shares, EIP and incentive program 5,612 248 358 357 2,477
Net cash flows from financing activities (39,248) (2,097) (1,895) (1,852) (639)
Net increase/(decrease) in cash and cash equivalents (13,613) 2,577 11,613 13,693 16,590
Cash and cash equivalents at the beginning of the period 53,337 50,759 39,147 25,454 8,864
Cash and cash equivalents at the end of the period 39,724 53,337 50,759 39,147 25,454

WEBSTEP ASA

Visitor address: Epicenter Oslo Edvard Storms gate 2 NO-0166 OSLO

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

Postal address: c/o EP Center Norge AS Edvard Storms gate 2 NO-0166 OSLO

webstep.com

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