Webstep As · OSL:WSTEP
Webstep As — Q1 2019 Earnings Presentation
28 slides from Webstep As's earnings presentation, May 22, 2019
Slide 1: Q1 2019 Presentation Webstep ASA
Q1 2019 PRESENTATION Webstep ASA OSLO, 22 MAY 2019 Arne Norheim, CEO Liv Annike Kverneland, CFO
Slide 2: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 2
Slide 3: Q1 Highlights
Q1 HIGHLIGHTS • All-time high revenue of NOK 184.4 million (+5.5 %), lead by Norway with revenue growth of 9.4 % • EBITDA of NOK 22.3 million (-6.6 %) impacted by increased use of subcontractors and CEO recruitment costs • New CEO appointed • Geographic expansion continues • Continued high demand fo
Slide 4: Capacity and Seasonality Key Value Drivers
CAPACITY AND SEASONALITY KEY VALUE DRIVERS Highlights Q1 • Revenues +5.5% Y/Y • Revenues in Norway +9.4 % Y/Y • Higher hourly rates and use of subcontractors boost revenue, but lower capacity compared to Q1 2018 • Easter holidays falling in April 2019, as opposed to March 2018, gave one extra workin
Slide 5: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 5
Slide 6: Business Review: Market and Customers
BUSINESS REVIEW MARKET AND CUSTOMERS Market conditions still favourable • Continued strong demand for IT expert services in all markets • Demand drives increased hourly rates in both the public and private sectors Status as Amazon Web Services Reseller • Extends the Webstep offering • Meets demand f
Slide 7: Customer Case: Machine Learning to strengthen the market position
BUSINESS REVIEW | CUSTOMER CASE Machine Learning to strengthen the market position Bisnode is one of Europe’s leading providers of services that interpret, refine and understand data that forms the basis of their clients' business decisions • Webstep expert consultants have been part of Bisnode’s de
Slide 8: Customer Case: Leading the way with complete Intelligent Transportation Systems
BUSINESS REVIEW | CUSTOMER CASE Leading the way with complete Intelligent Transportation Systems (ITS) solutions Q-free is a global supplier of class-leading Tolling, Parking, Traffic Management and Connected ITS (C-ITS)/Connected Vehicle solutions ● Q-free is making the world greener by optimising
Slide 9: Customer Case: Leading Norwegian property technology partner
BUSINESS REVIEW | CUSTOMER CASE Leading Norwegian property technology partner Ambita is the leading integrator of property information and services in the Norwegian fintech and proptech markets • Ambita provides automated decision support, portfolio analysis, valuation and summarising machine learni
Slide 10: Customer Case: Utilising the AWS reseller position
BUSINESS REVIEW | CUSTOMER CASE Utilising the AWS reseller position to create new possibilites Amazon Web Services (AWS) is the world-leading cloud services platform provider. Since becoming an AWS Reseller early 2019, Webstep has won two public cloud frame agreements within the Norwegian public sec
Slide 11: Business Review: Employees and Organisation
BUSINESS REVIEW EMPLOYEES AND ORGANISATION Continued strong competition for IT experts • Recruitment is top priority, yet time consuming and subject to fierce competition for talents • Strong focus on competence building activities to retain, develop and attract the expert consultants Great Place to
Slide 12: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 12
Slide 13: Financial Review: All-time High Revenues
FINANCIAL REVIEW | ALL-TIME HIGH REVENUES (Amounts in NOK million) Q1 Q1 % FY • Higher hourly rates 2019 2018 Change 2018 and increased use of subcontractors boost Total revenues 184.4 174.9 5.5 % 663.2 revenue, but lower capacity compared Cost of services and goods 22.4 17.3 70.6 to Q1 2018 Salarie
Slide 14: Financial Review: Norway
FINANCIAL REVIEW | NORWAY • Strong revenue growth: Q1 NOK 161.6 m (+9.4%) • Market situation remains very favourable • Higher hourly rates and increased use of subcontractors boost revenue, but lower capacity compared to Q1 2018 • Increased use of subcontractors and CEO recruitment costs reduce marg
Slide 15: Financial Review: Sweden
FINANCIAL REVIEW | SWEDEN • Revenues: Q1 NOK 22.8 m (-16%, -14% constant currency) • Revenue reduced due to less use of subcontractors and negative currency effect, but positive effect from increased hourly rates and utilisation • New office in Sundsvall, in addition to recent opening in Uppsala 15
Slide 16: Financial Review: A Capital Efficient Business
FINANCIAL REVIEW | A CAPITAL EFFICIENT BUSINESS (Amounts in NOK million) 31 Mar 31 Dec (Amounts in NOK million) 31 Mar 31 Dec 2019 2018 2018 2019 2018 2018 ASSETS EQUITY Non-current assets Share capital 27.0 27.0 27.0 Intangible assets 384.6 383.8 387.8 Treasury shares -0.5 -0.6 -0.5 Fixed assets 18
Slide 17: Financial Review: Cash Flow
FINANCIAL REVIEW | CASH FLOW (Amounts in NOK million) Q1 Q1 1 Jan - 31 Dec • Cash balance 2019 2018 2018 reduction mainly Operating activities explained by Profit/(loss) before tax 19.8 22.9 73.5 calendar effects Adjustments for: related to which Depreciation of property, plant and equipment 2.2 0.6
Slide 18: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 18
Slide 19: Outlook: A Sustained Strong Market
OUTLOOK A SUSTAINED STRONG MARKET Continued high demand for IT expertise • Digitalisation is a growth driver • Competitive recruitment market • Capacity expected to decrease slightly in Q2 compared to Q1 • H1 2019 revenues expected to be more or less in line with H1 2018 Four focus areas to enable f
Slide 20: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 20
Slide 21: Appendix
APPENDIX
Slide 22: Effects of Implementation of IFRS 16 Leasing
EFFECTS OF IMPLEMENTATION OF IFRS 16 LEASING Amounts in NOK thousand IFRS 16 IAS 17 Q1 2019 Q1 2019 Q1 2018 Operating revenues 184 432 184 432 174 865 Operating expenses (excluding depreciation and amortisation) 162 089 163 322 150 933 EBITDA 22 343 21 110 23 932 Depreciation and impairment 2 158 1
Slide 23: Financial Review: Segments - Norway
FINANCIAL REVIEW | SEGMENTS Norway (Amounts in NOK million) Q1 2019 Q1 2018 FY 2018 Sales revenues 161.6 147.7 570.3 EBITDA1) 21.4 21.9 75.3 EBITDA margin1) 13.2 % 14.8 % 13.2 % EBITDA with former principles for leasing1) 20.5 21.9 75.3 EBITDA margin with former principles for leasing1) 12.7 % 14.8
Slide 24: Financial Review: Segments - Sweden
FINANCIAL REVIEW | SEGMENTS Sweden (Amounts in NOK million) Q1 2019 Q1 2018 FY 2018 Sales revenues 22.8 27.2 92.8 EBITDA1) 1.0 2.0 3.5 EBITDA margin1) 4.3 % 7.4 % 3.7 % EBITDA with former principles for leasing1) 0.6 2.0 3.5 EBITDA margin with former principles for leasing1) 2.5 % 7.4 % 3.7 % Number
Slide 25: Financial Review: Equity Changes
FINANCIAL REVIEW | EQUITY CHANGES
Slide 26: Top 20 Shareholders at 15 May 2019
TOP 20 SHAREHOLDERS | AT 15 MAY 2019 Shareholder name Shares % Type Country ARCTIC SECURITIES AS 3 844 255 14,3 Broker Norway Virtus KAR International Small-Cap 3 831 491 14,2 Ordinary United States VERDIPAPIRFONDET ALFRED BERG GAMBA 1 556 645 5,8 Ordinary Norway HNDLSBKN NORDISKA SMABOLAGSFOND 1 00
Slide 27: Top Shareholders: Share of Total by Geography
TOP 20 SHAREHOLDERS | SHARE OF TOTAL | BY GEOGRAPHY Top 20 shareholders by geography, 15 May 2019 Top 20 shareholders at 15 May 2019 NORDIC USA 32% EUR 68% NORWAY Total top 20 shareholders Other
Slide 28: Enabling Future Growth, Meeting Today's Demand
ENABLING FUTURE GROWTH MEETING TODAY’S DEMAND 28