Q2 AND H1 2017 RESULTS

Highlights second quarter and first half 2017

• Stable Q2 2017 pro forma revenues of NOK 182.2 million (NOK 180.3 million); reflecting a y-o-y Growth of 28% in solutions revenue and 2.4% in hardware revenue, which is offset by a reduction in commission and bonuses. The reduction relates to the transition to new business model and focus on solution sales
• Pro forma adjusted EBITDA of NOK 1.8 million (NOK 10.7 million); mainly explained by a combination of stable total revenues and increased costs related to growth investments, including consolidation of group entities and customer offering in preparation for further expansion
• Secured contract with Norwegian Nurses Organisation for delivery of MaaS (Mobile as a Service) including hardware, mobile asset management solution, training and support, and financing
• Awarded frame agreements with the Norwegian Tax Administration, Akershus County Council and Asker Municipality for deliveries of hardware and advisory and support services
• Pro forma end-user base increased from ~460,000 in Q1 2017 to ~490,000 in Q2 2017
• Completed acquisitions of the telecom mobility hardware company Apro Tele og Data AS and the Swedish enterprise mobility management company InfraAdvice Sweden AB
• Formally established Techstep Finance, a joint venture with an experienced financing operating partner, and a key component of the MaaS (Mobile as a Service) offering
• Strengthened Techstep’s executive management team with Inge Paulsen as Chief Operating Officer (from May 2017) and Erik Haugen as Chief Commercial Officer (from 1 October 2017)

Subsequent events

• Signed an agreement to acquire the business telecommunication equipment and services provider BKE TeleCom AB, to establish a broader foundation for expansion in Sweden
• Signed an agreement to acquire 51% of the Swedish enterprise mobility management (EMM) company Conneqted 365 AB, with an option agreement to acquire the remaining 49%, to supplement Techstep’s current EMM offering with complementary compencies
• Techstep has, via Kjedehuset, been certified as “Apple Authorized Enterprise Reseller”, which is Apples new and highest partner accreditation for the B2B market

“The Q2 figures reflects the ongoing consolidation of the companies we acquired over the past quarters and related investments for further expansion. Together with our newly established financing company, Techstep Finance, we are combining our products and solutions into our MaaS (Mobile as a Service) offering, which is a one-stop-shop solution for the digital workplace. MaaS is already attracting strong interest from existing customers wanting to implement this solution”, says Gaute Engbakk, CEO of Techstep.

“I am confident that we will see a positive effect on the profitability from the turn of the year going forward. We are experiencing positive feedback from current and potential new customers who need help digitizing their business processes, as well as a push from customers wanting pan-Nordic deliveries. Our most recently announced acquisitions in Sweden, further expand our customer base and will secure complete delivery capacity and scalability of our business model in the Nordic countries”, says Engbakk.

Material:
Please find the report and presentation for Q2 and H1 2017 enclosed.
Techstep Q2 2017 presentation
Techstep Q2 2017 report

Further information from:
Gaute Engbakk, CEO, Techstep ASA: +47 916 33 281
Marius Drefvelin, CFO, Techstep ASA: +47 958 95 690

Techstep ASA – we make workplace mobile
Techstep is positioning itself as a leading Nordic enabler of the digital workplace. Techstep’s unique “Mobile as a Service” (MaaS) offering is a one-stop-shop solution, which combines hardware, subscription & connectivity, mobile device management, managed services and related software, in addition to financing. The MaaS solution enables enterprises to let employees do their work across mobile devices and locations, with a high degree of security and operational stability. Techstep employs approximately 166 team members based in Norway and Sweden, serving close to 5,000 customers and 490,000 end users across various industries in the private and public sectors. The company had sales of approximately NOK 720 million in 2016, and is listed on the Oslo Stock Exchange. For more information, please visit http://techstep.no/.