Webstep As · OSL:WSTEP
Webstep As — Q4 2018 Earnings Presentation
27 slides from Webstep As's earnings presentation, Feb 14, 2019
Slide 1: Q4 2018 Presentation Webstep ASA
Q4 2018 PRESENTATION Webstep ASA OSLO, 14 FEB 2019 Kjetil Eriksen, CEO Liv Annike Kverneland, CFO
Slide 2: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 2
Slide 3: Q4 and FY Highlights
Q4 AND FY HIGHLIGHTS • Strong revenue growth in 2018 • Q4: NOK 175.3 m (+6%) • FY: NOK 663.2 m (+11%) • Solid EBITDA • Q4: NOK 17.5 m (+214%, -10% ex. non-recurring costs) • FY: NOK 78.8 m (+38%, +11% ex. non-recurring costs) • Very strong order book at year end • Solid financial position – equity r
Slide 4: Capacity and Seasonality, Key Value Drivers
CAPACITY AND SEASONALITY KEY VALUE DRIVERS Highlights Q4 • Revenues +6% Y/Y 1) • Higher hourly rates and utilisation boost revenue, but lower capacity compared to Q4 2017 • Higher cost of services and goods due to increased use of subcontractors affects EBITDA 4
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 exceeding expectations • Strong willingness to pay for expert IT services • Structural upward shift in rates continues • High demand for core digitalisation services Major cloud players boost deliveries through expert partners • Amazon Web Servi
Slide 7: Enabling Future Growth Meeting Today's Demand
ENABLING FUTURE GROWTH MEETING TODAY’S DEMAND 7
Slide 8: Home Security and Optimisation of Industrial Maintenance
BUSINESS REVIEW HOME SECURITY AND OPTIMISATION OF INDUSTRIAL MAINTENANCE ASSA ABLOY uses machine learning and artificial intelligence to detect break-in attempts • Webstep has helped ASSA ABLOY on smart surveillance systems using deep learning and machine learning to detect attempts to break-in thro
Slide 9: Recommender System Through Advanced Machine Learning
BUSINESS REVIEW RECOMMENDER SYSTEM THROUGH ADVANCED MACHINE LEARNING Strong competition from Netflix and HBO sets high demands for delivering attractive, personalised products to TV2 Sumo customers • With more than 400 000 customers TV2 Sumo is one of the largest and most popular streaming services
Slide 10: Controlling Temperatures on Critical Equipment
BUSINESS REVIEW CONTROLLING TEMPERATURES ON CRITICAL EQUIPMENT Being one of the world’s leading integrated electricity and gas operators, Enel generates more than 86 GW of energy, selling and distributing to more than 70 million end users in 34 countries across 5 continents • Enel needs to control t
Slide 11: Savings and Investment Digitalisation
BUSINESS REVIEW SAVINGS AND INVESTMENT DIGITALISATION Storebrand is optimising their investment management operation and positioning for future growth • The systems developed at Skagen will be the core of the future Storebrand savings and investment platform • Existing clients and fund holdings at S
Slide 12: Business Review: Employees and Organisation
BUSINESS REVIEW EMPLOYEES AND ORGANISATION Continued strong competition for IT experts • Replacement of staff a top priority, but recruitment is time consuming and subject to fierce competition for talents • Several measures taken to further strengthen Webstep’s strong culture and position as an att
Slide 13: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 13
Slide 14: Financial Review: Profitable Revenue Growth
FINANCIAL REVIEW | PROFITABLE REVENUE GROWTH • Higher hourly rates and utilisation boost revenue, but lower capacity compared to Q4 2017 • Higher cost of services and goods due to increased use of subcontractors • NOK 13.9 m non- recurring costs recognized in Q4 2017 1) EBITDA ex. non-recurring cost
Slide 15: Financial Review: Norway
FINANCIAL REVIEW | NORWAY Summing up • Strong revenue growth: • Q4 NOK 150.5 m (+11%) • FY NOK 570.3 m (+15%) • Market situation remains very favourable, high order intake and backlog • Higher hourly rates and utilisation boost revenue, but lower capacity compared to Q4 2017 • Increased use of subco
Slide 16: Financial Review: Sweden
FINANCIAL REVIEW | SWEDEN Summing up • Revenues: • Q4 NOK 24.8 m (-18%, -14% constant currency) • FY NOK 92.8 m (-8%, -5% 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
Slide 17: Financial Review: A Capital Efficient Business
FINANCIAL REVIEW | A CAPITAL EFFICIENT BUSINESS Receivables lower: • Trade receivables at year end NOK 103.3 m, down from NOK 125.5 m • 31 December falling on a weekday in 2018 and on a Sunday in 2017 explains the reduced receivables, as most receivables are due the last day of the month Strong equi
Slide 18: Financial Review: Cash Flow
FINANCIAL REVIEW | CASH FLOW • Strong cash generation in 2018 • Profits and reduction in receivables resulted in NOK 92 m in net operating cash flow • Cash balance of NOK 33.5 m 31 Dec 2018 (NOK 6.6 m) 18
Slide 19: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 19
Slide 20: Outlook: A Sustained Strong Market
OUTLOOK A SUSTAINED STRONG MARKET Market outlook is robust • Digitalisation of private and public sectors - a growth driver • Increase in hourly rates expected to continue, especially for new engagements Several initiatives to strengthen future growth • Geographical expansion: From seven to eleven r
Slide 21: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 21
Slide 22: Appendix
APPENDIX
Slide 23: Financial Review: Segments
FINANCIAL REVIEW | SEGMENTS 1) Adjusted for IPO costs and other non-recurring items of NOK 14.0 million in Q4 2017. See note 12 for alternative performance measures.
Slide 24: Financial Review: Segments
FINANCIAL REVIEW | SEGMENTS 1) See note 12 for alternative performance measures.
Slide 25: Financial Review: Equity Changes
FINANCIAL REVIEW | EQUITY CHANGES
Slide 26: Top 20 Shareholders at February 2019
TOP 20 SHAREHOLDERS | AT 11 FEBRUARY 2019 Shareholder name Shares % Type Country ARCTIC SECURITIES AS, MEGLERKONTO 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 COLINA INVEST AS 8
Slide 27: Top Shareholders: Share of Total by Geography
TOP 20 SHAREHOLDERS | SHARE OF TOTAL | BY GEOGRAPHY