TECHSTEP ASA: Q3 2018 RESULTS

Highlights third quarter 2018

• Revenue increased 45% year over year to NOK 261.6 million in Q3 2018, driven by growth in Norway
• EBITDA of NOK 10.9 million (4.2%) vs. Q3 2017 EBITDA of NOK 5.4 million (3.0%). The EBITDA level continues to reflect growth investments and integration costs
• Awarded new contracts with a potential total value of NOK 242 million in Q3 and NOK 765 million YTD 2018
• Completed acquisition of Wizor AS, enabling Techstep to provide high-end cyber security solutions

CEO comments

“We delivered solid growth in the third quarter. Revenue increased 45% driven primarily by growth in Norway.

We also continued to close new contracts. The important DIFI contract (Agency for Public Management and eGovernment) shows that our sharp focus on being a specialised mobility vendor pays off. Our customers value that Techstep’s sole mission is to ensure that they harvest the benefits mobile technology offers.

Revenue growth alone does not generate the profitability we aim for and as part of our integration and consolidation strategy, several actions have been implemented to improve our profitability level. We are beginning to see the impact of these efforts, especially in Norway. In Sweden, where we started later, we expect to see results next year.

Another key part of the integration plan in Norway and Sweden is the merger of sales and delivery units in each country. We expect to complete this by the end of the year.

A better integrated Nordic organisation aligned behind one Techstep brand, makes us excited about the opportunities we see ahead of us. People want simple and secure mobile solutions and Techstep is increasingly better positioned to deliver on that demand”, says Jens Haviken, CEO of Techstep.

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Material

Please find the report and presentation for Q3 2018 enclosed.
Techstep Q3 2018 Report
Techstep Q3 2018 Presentation

Presentation and audiocast:

CEO Jens Haviken and CFO Marius Drefvelin will present the company’s Q3 2018 results today at 10:00 am CET at Hotel Vika Atrium, Munkedamsveien 45, in Oslo, Norway.

The presentation will be given in Norwegian, with supporting material in English. The presentation can also be followed through live audio webcast.

Please join the Q3 2018 results webcast by clicking here:
http://webtv.hegnar.no/presentation.php?webcastId=97451622

A recorded version of the webcast will be made available on www.techstepasa.no shortly after the broadcast has been concluded.

Further information from:

Jens Haviken, CEO, Techstep ASA: +47 930 90 070
Marius Drefvelin, CFO, Techstep ASA: +47 958 95 690

About Techstep ASA

Techstep is positioning as a leading Nordic enabler of the digital workplace. Techstep delivers hardware, software, connectivity and mobile device management bundled as a managed service. This enables enterprises and their employees do their work across mobile devices and locations, with a high degree of security and operational stability. Techstep has 225 employees based in Norway and Sweden, serving close to 6,000 customers and 658,000 end users across various industries in the private and public sectors. The company is listed on the Oslo Stock Exchange. For more information, please visit http://techstepasa.no/.