Making work mobile Q2 2021 Presentation - 19 August 2021 - Cision
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Making work mobile Q2 2021 Presentation 19 August 2021
CEO Børge Astrup
Børge is a business leader committed to creating a winning
working environment by engaging and embracing diversity.
Børge uses goal-oriented methodologies to drive fast, focused,
and uncomplicated market delivery.
Børge Astrup comes from the position as CEO of Puzzel, an
international fast-growing cloud contact center software
(CCaaS) company with an industry leading product platform,
with over 200 employees and annual revenue of USD 40
million. He led Puzzel's demerger from Intelecom Group, a
Norwegian telecom, contact center and mobile services
provider.
Prior to the demerger, Børge was the managing director of
Intelecom Group. He has also held various management
positions at Visma, the leading European provider of core
business software.
2
Making work mobile
Bus drivers uses tablets for damage Electricians document their work Doctors and nurses
reports and timetables in the field and invoice immediately between doing admin work on
site visits devices in between patients
Techstep’s transformation journey: Becoming
a Managed Mobility Services (MMS) leader Gross profit
2016-2021 Q2 LTM
M&A to strengthen
MMS offering and
unlock European
Managed Mobility expansion
Services and recurring
business model
Focus on integration
and transition towards a
software & services-led
company
Further expansion with
new partners and
Swedish operations
Techstep established,
acquisitions and
consolidation of the Organic business development and 11 acquisitions
Norwegian market
2016 2017 2018 2019 2020 2021
4
Highlights
Gross profit EBITDA adjusted
• Q2 and H1 gross profit of NOK 114 million and NOK NOK million NOK million, EBITDA/GP %
448
228 million respectively, up from NOK 78 million and 200
NOK 158 million in the same periods in 2020 378
150
279
• Q2 and H1 EBITDA adjusted of NOK 13 million and
96 94
NOK 27 million respectively, down from NOK 17 million 100
and NOK 29 million in the same periods in 2020 25% 21%
50
29
• Signed 6 new managed mobility service contracts in Q2,
10%
with an estimated value of NOK 77 million and ~7,300 0
managed devices FY 2019 FY 2020 LTM Q2 FY 2019 FY 2020 LTM Q2
2021 2021
• Raising NOK 100 million in private placement to fund
the Famoc acquisition, closed on 1 July
• Børge Astrup, an experienced software services leader >210k
and entrepreneur, appointed as CEO from 1 August managed
devices
5
Continued increase in MMS wins: added NOK 77
million in contract value in Q2 2021
Total value of new MMS contracts Total new MMS contracts
Cumulative value in NOK million Cumulative number of new contracts
38
216
32
24
139
21
124
16 99
13
56
7
29
17
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021
MMS value # contracts
6
Adding new brands and organizations to
Techstep’s MMS customer base
6 +7,300 +210k
MMS contracts signed in the New managed devices in the Total managed devices at the
quarter quarter end of the quarter
Increased adoption of
MMS for better processes
Techstep will, under an existing framework agreement, support Posten in
reducing its IT complexity and cost, and deliver efficient and timely
operations through Techstep’s as-a-service model
The agreement will deliver “Flow” to 2,400 managed devices with support
and services, device lifecycle management and hardware financing
The MMS solution will ensure that Posten’s in-the-field workforce has easy
and secure access to work applications wherever and whenever, and at
the same time improving employee experiences
Asset management 2,400
Managed devices
8
MMS to deliver cost-
effective public transport
Techstep, through its subsidiary Optidev AB, has signed an
agreement with the Swedish public transport company AB
Storstockholms Lokaltrafik (SL) to deliver a complete MMS-solution
The MMS solution will use software developed by Optidev to deliver an
integrated public transport ticketing system, with operational support for
software and hardware
Techstep’s MMS offering will improve mobile workflows and increase
operational efficiency, in addition to reduce IT complexity for SL.
Enabling SL to deliver a cost-effective public transport system with
higher quality and better capacity
Advisory Services
Platform management
14 NOKm
revenue over four years
Asset management
9
Famoc acquisition - strengthening MMS
capabilities and unlocking European expansion
Famoc completes Techstep Techstep completes Famoc
• Provides customers with a complete, • Techstep’s structural capabilities and
automated and fully integrated MMS know-how to accelerate Famoc’s
platform channel sales
• Gives users control, security, • Inclusion of Techstep’s own IP and
compliance and lifecycle management software into Famoc’s current offering
will add significant customer value,
• All within one dashboard – all at a and thus quicken Famoc’s growth
lower cost
The combined force of the two companies are set to embrace MMS opportunities
in a vastly expanded market – with a serious competitive advantage
10Helping customers harvest the value
of Managed Mobility Services
~210 000
Devices managed by
Techstep
~550
Techstep’s enterprise
customer base
~6 000
Enterprises in the Nordics
Some of Techstep’s enterprise customers
11 Enterprise includes companies with 200 or more employees
Techstep market estimatesFinancials Q2 2021
Key figures
(Amounts in NOK 1 000) Q2 2021 Q2 2020 H1 2021 H1 2020 FY 2020
• Gross profit increase of 46% in Q2 and 44%
Revenues 324 737 238 173 630 667 530 850
Annual Recurring Revenue (ARR) 64 303 37 110 64 303 37 110
1 142 866
in H1 2021 from same period previous year,
63 329
mainly due to acquisitions and increase in
Gross profit 113 879 77 882 227 911 158 336 378 287 hardware-as-a-service
EBITDA adjusted
EBITDA
13 288
5 251
17 193
24 270
26 619
18 108
28 572
35 899
95 640
• EBITDA adjusted affected by the effect of
104 455
EBITA (19 925) 10 176 (33 135) 9 783 17 122 gradual change from one-off revenue to
EBIT (32 063) 3 816 (56 062) (1 615) (10 771) recurring revenue
Net profit (loss) for the period (23 013) 3 987 (47 709) 596 (23 557)
EBITDA adj. margin (%) 4.1% 7.2% 4.2% 5.4% 8.4 %
• Increase in depreciation relates to growth in
EBITDA rep. margin (%) 1.6% 10.2% 2.9% 6.8% 9.1 % hardware-as-a-service portfolio, as well as
EBITA margin (%) (6.1%) 4.3% (5.3%) 1.8% 1.5 % prudent approach on residual values
EBIT margin (%) (9.9%) 1.6% (8.9%) (0.3%) (0.9 %)
Net profit (loss) for the period (%) (7.1%) 1.7% (7.6%) 0.1% (2.1 %)
• Cash of NOK 154 million, increased by
Cash 154 036 36 561 154 036 36 561 27 203 private placement of NOK 100 million in
Net interest-bearing debt 64 330 6 503 64 330 6 503 166 838
21 386
May 2021, reducing net interest-bearing
Capex1) 17 112 5 351 23 872 10 193
debt to NOK 64 million
1) EBITDA adjusted in Q2 2021 excludes non-recurring items such as M&A related costs totalling NOK 8.0 million.
2) Capex only includes development capex and not hardware-as-a-service portfolio, booked as capex under IFRS 16.
The Optidev acquisition is included in the financial statements from Q4 2020.
13Reported gross profit development by segment
Gross Profit - last twelve months rolling • Continued transformation from traditional one-off
500,0
NOK million deliveries to recurring revenue
448
450,0
412
378
24
• Further growth in the MMS related segments,
400,0
27
350,0
305 31 132
Hardware-as-a-service, Own software and Advisory
300,0
293 115 & Services, driven by acquisitions and increased
32 105
35 53 product adoption from existing customers
48
250,0
200,0
93
92 43 • As expected, continued reductions in commissions
122
104
150,0
36
38 85 • Focus on rolling out MMS offering expected to grow
19 36
100,0
gross profit going forward
113 117 118
108 106
• Driving recurring revenue/ARR, visibility and
50,0
-
profitability
Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2022
Hardware one-off Hardware-as-a-service Own software
Advisory & Services Operating commissions Other
14Proforma gross profit and EBITDA adj. development
Gross profit, EBITDA adj. and in % of GP – LTM
NOK million and percent • Gross profit growth driven by growth in the
491
443 487 recurring revenue portfolio, replacing
423 transactional one-off revenue
409
• Profitability impacted by the recurring revenue
transition and investments in long term growth
• Long-term focus to increase EBITDA conversion
27%
25%
• Operational leverage and economies of scale
23% 22%
20% • Increasing software, IP and mobility expertise
driven profit
133 124
103 110
86
Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021
Proforma EBITDA adj. Proforma Gross profit Proforma EBITDA adj./Gross profit
15ARR of NOK 93 million including Famoc
ARR
NOK million
• NOK 64 million in reported ARR, 93 million with
Famoc (closed in Q3 2021)
MMS • Of the 93 million in proforma ARR, MMS related
ARR of NOK 64 million
• 50k users on the Origo platform, up 69% YoY and
16% YTD
• Gross margin on ARR from own software ~95%
• Increase in sale and roll-out of MMS offering to
drive ARR growth
16 Famoc will be consolidated from Q3 2021.Balance sheet
(Amounts in NOK 1 000) 31.06.2021 31.12.2020
• Equity ratio at 47%
Intangible assets 720 166 733 263
Tangible assets 203 195 173 616
• Intangible assets are mainly goodwill of NOK 567 million
Financial assets 344 213
and customer relations and technology of NOK 143
Inventories 20 811 43 258
Accounts receivable 164 298 187 983
million
Other receivables 37 672 33 594
• Tangible assets consist of right-of-use assets of NOK 32
Cash and cash equivalents 154 036 27 203
million from premises and IT licenses and hardware-as-
Total assets 1 300 523 1 199 131
a-service to customers of NOK 170 million
Total equity 605 612 563 451
• Non-current interest-bearing debt includes acquisition
Deferred tax 24 226 27 659
Non-current interest-bearing debt 123 664 108 539 loans of NOK 71 millionand seller’s credit NOK 49 million
Other non-current debt 43 159 54 488
• Other current liabilities consist of deferred revenue from
Current interest-bearing liabilities 94 702 85 502
Accounts payable 140 958 154 442 hardware-as-a-service of NOK 132 million
Tax payable (995) (750)
Public taxes, provisions 35 334 39 756 • Net interest-bearing debt NOK 64 million, including bank
Other current liabilities 233 862 166 044
Total equity and liabilities 1 300 523 1 199 131 deposits of NOK 154 million, acquisition loans of NOK 91
million and seller’s credit of NOK 72 million
17Cash flow
(Amounts in NOK 1 000) Q2 2021 Q2 2020 H1 2021 H1 2020 FY 2020
• Operational cash inflow includes an
improvement in working capital of NOK 17
Net cash flow from operational activities 19 241 25 807 112 938 24 739 71 120
million as well as increased deferred
revenue from hardware-as-a-service
Net cash used on investment activities ( 38 943) ( 6 296) ( 113 414) ( 29 630) (170 361)
• Net investments include leased out
Net cash flow from financing activities 109 308 ( 3 427) 128 724 ( 6 675) 79 619
equipment of NOK 23 million and
investments in software and IT development
Net change in cash and cash of NOK 17 million
equivalents 89 605 16 083 128 247 ( 11 566) (19 622)
• Net financing includes proceeds of NOK 101
Cash and cash equivalents at beginning of million from private placement in May 2021
period 62 796 19 996 27 203 44 382 44 588
Effects of exchange rate changes on cash
and borrowing of NOK 12 million, offset by
and cash eq. 1 634 481 ( 1 414) 3 745 2 236 lease repayments of NOK 5 million
Cash and cash equivalents at end
of the period 154 036 36 561 154 036 36 561 27 203
18Outlook and summary Q2 2021
Targeting strong MMS growth in 2021
KPI Q2 2021 H1 2021 Medium Term
Managed
New MMS contracts 6 14 > 30
Mobility
Services
Origo user growth 69%* 69%* > 100%
Financials Gross profit growth 46%* 44%* 20-25%
EBITDA/Gross profit 12% 12% 20-25%
Development capex 17 NOKm 24 NOKm 35 – 40 NOKm
20 *From Q2/H1 2020Summary
• Raising NOK 100 million to fund Famoc
acquisition, strengthening Techstep’s MMS
capabilities and unlocking European expansion
• Gross profit growth continues
• Signed 6 new MMS contracts with 7,300
managed devices
• Continuous focus on:
• Delivering customer value
• Ensure sustainability
• Accelerate conversion to recurring revenue
21Q&A 19 August at 10:00 CET Send your questions to ir@techstep.no Join us here: https://bit.ly/2UbbYNn 22
Q&A Techstep ASA Q2 2021 results 19 August, 10:00 CET 23
Appendix 24
Management team
Børge Astrup – Chief Executive Officer Erik Haugen – Chief Commercial Officer
Børge is an experienced business leader committed to creating a Mr Haugen is an international business professional, bringing with him
winning working environment. Børge Astrup has experience as the broad commercial experience. He spent twelve years in London
CEO of Puzzel, an international fast-growing cloud contact center working with sales, marketing and business management
software (CCaaS) company, as well as the managing director of for companies like Pioneer and Sony Ericsson. Subsequently he
Intelecom Group. He has also held various management positions at moved into finance and professional services sales at Lindorff AS (now
Visma, the leading European provider of core business software. Intrum) in 2011 where he has been responsible for strategic sales, key
account management and business development for a large portfolio
of clients within telecoms, utilities, trade, SME and public sector.
Marius Drefvelin – Chief Financial Officer Inge Paulsen – Managing Director Norway
Mr. Drefvelin joined Techstep in January 2017 and was previously Mr. Paulsen is an experienced executive manager with a proven track
the CFO of Creuna, a leading Nordic technology and communications record from companies like Clear Channel, Eltel Networks/Sønnico
consultancy, for five years. Prior to this, he worked nine years as a Tele, Infratek/Hafslund, Implement and Accenture. His broad
consultant within mergers, acquisitions and IPOs. experience comes from heading strategic business development
projects in venture businesses or turnaround cases as well as holding
various executive positions responsible for profit & loss.
Mads Vårdal – Chief Product Officer Fredrik Logenius – Managing Director Norway
Mr Vårdal has been with companies within the Techstep sphere for Mr Logenius is a first-mover, entrepreneur and an experienced
more than 11 years. He came from a central position in Teki Solutions executive within the information technology and services industry. His
AS and has been a leading figure for the development of SmartWorks. skill set is broad and based on entrepreneurship and strategy, agile
He has previously had a leading position in Nordialog Skøyen AS and methodologies, software development and mobile solutions. Mr
CEO in Buskerud Tele AS. Logenius was awarded Entrepreneur of the Year 2020 in Borås due to
business achievements as Managing Director in Optidev AB.
25Board of Directors
Jens Rugseth – Chairman of the board (since 2019) Ingrid Leisner - Board member (since 2016)
Jens Rugseth is a co-founder and Chairman of the Board of Crayon Group ASA and Link Ms. Leisner has served on the Board in Techstep since January 2016. Ms. Leisner’s
Mobility Group ASA. He has been a serial founder of a number of companies within the directorships over the last five years include current board positions in Xplora Technologies AS,
IT-sector over the past 30 years. Mr. Rugseth has also held the position of Chief Storage Group ASA, Norwegian Air Shuttle ASA, Maritime and Merchant ASA. Ms. Leisner has a
Executive Officer in some of the largest IT-companies in Norway, including ARK ASA, background as a trader of different oil and gas products in her 15 years in Equinor ASA. Her
Cinet AS and Skrivervik Data AS. Mr. Rugseth studied business economics at the years of experience and skills within business strategy, M&A, management consulting and
Norwegian School of Management. Jens Rugseth is a Norwegian citizen, currently change management has been very valuable when serving on the board of several companies
residing in Oslo, Norway. listed on Oslo Børs. She holds a Bachelor of Business degree with honours from the University
of Texas in Austin.
Anders Brandt - Board member (since 2018) Melissa Mulholland - Board member (since 2021)
Mr. Brandt has more than 20 years of experience in international entrepreneurship, Ms. Mulholland is Chief Executive Officer of Crayon, a worldwide digital transformation expert.
technology, venture capital and digital services. He is managing partner in the venture Prior to Crayon, Melissa spent 12 years at Microsoft, leading strategy and business
capital fund Idekapital, and has co-funded and exited numerous companies including development through cloud transformation. Prior to Microsoft, she spent two years at Intel
DinSide, OMG, Viken Fibernett, Mytos, Meshtech and Bubbly Group. Brandt has 14 years Corporation, driving a cross-company analysis into the effectiveness of using recycled chips
of board experience of listed companies on Oslo Børs and Nasdaq Stockholm, whereof for solar technology. She has authored 12 books focused on how to build a business in the
several tech companies. Cloud and is a board advisor for SHE, Europe’s largest gender equality conference. Ms.
Mulholland holds an MA in Business Administration and Strategic Management from Regis
University in Colorado.
26Largest shareholders Investor Number of shares % of top 20 % of total Type Country DATUM AS 36 615 646 23.08% 17.47% Ordinary Norway MIDDELBORG INVEST AS 23 528 007 14.83% 11.22% Ordinary Norway KARBON INVEST AS 21 804 349 13.75% 10.40% Ordinary Norway SWEDBANK AB 19 006 683 11.98% 9.07% Nominee Sweden DNB NOR BANK ASA MEGLERKONTO INNLAND 11 223 553 7.08% 5.35% Ordinary Norway VERDIPAPIRFONDET DNB SMB 8 017 940 5.05% 3.82% Ordinary Norway CIPRIANO AS 5 579 946 3.52% 2.66% Ordinary Norway TIGERSTADEN AS 5 000 000 3.15% 2.39% Ordinary Norway SAXO BANK AS MEGLERKONTO 3 025 411 1.91% 1.44% Ordinary Denmark TVENGE TORSTEIN INGVALD 3 000 000 1.89% 1.43% Ordinary Norway SÅ&HØSTE AS 2 925 936 1.84% 1.40% Ordinary Norway ZONO HOLDING AS 2 801 938 1.77% 1.34% Ordinary Norway BRIDGE CAPITAL AS 2 513 317 1.58% 1.20% Ordinary Norway NORDHOLMEN AS 2 075 608 1.31% 0.99% Ordinary Norway ADRIAN AS 2 038 851 1.29% 0.97% Ordinary Norway UNIFIED AS 1 969 264 1.24% 0.94% Ordinary Norway PIKA HOLDING AS 1 956 512 1.23% 0.93% Ordinary Norway NORDIALOG ENSJØ AS 1 946 253 1.23% 0.93% Ordinary Norway SABINUM AS 1 802 813 1.14% 0.86% Ordinary Norway IDEKAPITAL AS 1 797 532 1.13% 0.86% Ordinary Norway Total number owned by top 20 158 629 559 100.00% 75.67% Total number of shares 209 629 830 100.00% 27 Shareholder lists are provided by Oslo Market Solutions with data from EURONEXT VPS Updated 2021.08.17
Disclaimer This presentation (the “Presentation”) has been prepared by Techstep ASA (“Techstep” or the “Company” and together with its subsidiaries the "Techstep Group"). The Presentation has been prepared and is delivered for information purposes only. It has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated market place. The contents of the Presentation are not to be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should consult with its own professional advisors for any such matter and advice. The Company makes no representation or warranty (whether express or implied) as to the correctness or completeness of the information contained herein, and neither the Company nor any of its subsidiaries, directors, employees or advisors assume any liability connected to the Presentation and/or the statements set out herein. This Presentation is not and does not purport to be complete in any way. By receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the Company, its financial position and prospects and that you will conduct your own analysis and be solely responsible for forming your own view of any refinancing and the potential future performance of the Company’s business. The information included in this Presentation may contain certain forward-looking statements relating to the business, financial performance and results of the Techstep Group and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, “expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely views and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any other company in the Techstep Group, or any of its advisors or any of their parent or subsidiary undertakings or any such person’s affiliates, officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company and its advisors assume no obligation to update any forward-looking statements or to conform these forward-looking statements to the Techstep Group's actual results. Investors are advised, however, to inform themselves about any further public disclosures made by the Company, such as filings made with Oslo Børs or press releases. This Presentation does not constitute any solicitation for any offer to purchase or subscribe any securities and is not an offer or invitation to sell or issue securities for sale in any jurisdiction, including the United States. Distribution of the Presentation in or into any jurisdiction where such distribution may be unlawful, is prohibited. The Company and its advisors require persons in possession of this Presentation to inform themselves about, and to observe, any such restrictions. This Presentation speaks as of the date set out on the front page, and there may have been changes in matters which affect the Techstep Group subsequent to the date of this Presentation. Neither the issue nor delivery of this Presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Techstep Group have not since changed, and the Company does not intend, and does not assume any obligation, to update or correct any information included in this Presentation. This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo City Court as exclusive venue. By receiving this Presentation, you accept to be bound by the terms above. 28
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