Webstep As · OSL:WSTEP
Webstep As — Q1 2018 Earnings Presentation
26 slides from Webstep As's earnings presentation, May 9, 2018
Slide 1: Q1 2018 Presentation Webstep ASA
Q1 2018 PRESENTATION Webstep ASA OSLO, 9 MAY 2018 Kjetil Eriksen, CEO Anders Løken, CFO
Slide 2: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 2
Slide 3: Q1 Highlights
Q1 HIGHLIGHTS • Revenue of NOK 175m (NOK 161m), growth of 8.6% YOY • EBITDA of NOK 24m (NOK 25m), margin of 13.7% • Net profit of NOK 17.7m (15.8m), up 12% • Easter effect on top line and EBITDA • Increased revenue capacity YoY (410 FTEs vs 386 FTEs) 3
Slide 4: Capacity and Seasonality Key Value Drivers
CAPACITY AND SEASONALITY KEY VALUE DRIVERS Highlights Q1 1) • Proven increase of growth capacity • Continued high utilization • Increased hourly rates Other comments: • Less working days due to Easter 1) IPO costs and other non-recurring items of NOK 14 million recorded in Q4 2017 4
Slide 5: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 5
Slide 6: Enabling Future Growth Meeting Today's Demand
ENABLING FUTURE GROWTH MEETING TODAY’S DEMAND 6
Slide 7: Business Review: Market and Customers
BUSINESS REVIEW MARKET AND CUSTOMERS • The digitalisation wave drives market growth • Delivering services to clients with strategic focus on digitalisation • Continued strong demand for Core Services • Improved sales of New Services • Ability to move consultants between new and core services improve
Slide 8: Business Review: Employees and Organisation
BUSINESS REVIEW EMPLOYEES AND ORGANISATION • Added capacity in Q1 to meet client demand • Still recruiting solely experienced experts • A highly competitive market for IT experts • Continued high employee satisfaction • Ranked as one of the best workplaces in Norway and Sweden by GPTW * • 11 consecu
Slide 9: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 9
Slide 10: Financial Review: Profitable Revenue Growth
FINANCIAL REVIEW | PROFITABLE REVENUE GROWTH Comments: • Reduced depreciation and amortisation compared to Q1-17 as customer relationships (intangible asset) arisen from acquisitions are fully amortised • Higher profit and lower earnings per share (EPS) in Q1-18 than Q1-17, as EPS for Q1-17 is calcu
Slide 11: Financial Review: Norway
FINANCIAL REVIEW | NORWAY Revenue growth and Easter effects • Revenue growth above expectations • EBITDA impacted by calendar effects (Easter) • Continued strong utilisation within Core Services • Improved sales of New Services Revenues by quarter EBITDA by quarter1) 1) IPO costs and other non-recur
Slide 12: Financial Review: Sweden
FINANCIAL REVIEW | SWEDEN Continued revenue growth and positive client development • Strong revenue growth (+15.2% YoY) enabled by strategic use of subcontractors • Slightly lower margins due to subcontractors, yet enables new client relations and increases long term growth potential • Still a highl
Slide 13: Financial Review: A Capital Efficient Business
FINANCIAL REVIEW | A CAPITAL EFFICIENT BUSINESS • Stronger financial position post IPO • Capital issue and repayment of long term loan • Negative calendar effect in cash and receivables: • Receivables falling due on Saturday 31 March (Easter) paid in April • NOK 46.3 million paid by 5 April • Leavin
Slide 14: Financial Review: Cash Flow
FINANCIAL REVIEW | CASH FLOW • Restated cash flow for Q1 2017 to ease comparison • Q1 2017 cash flow impacted by change in reporting practice for cash, short term deposits and bank overdraft • Balance date 31 December 2016 (audited FY figures): Gross assets and debt figures reported • Balance date 3
Slide 15: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 15
Slide 16: Outlook: Strong Market Fundamentals
OUTLOOK STRONG MARKET FUNDAMENTALS • Continued robust market outlook, driven by high digitalisation investment activity • New Services expected to be important growth areas, yet still in early phase • Continued very high demand for Core Services 16
Slide 17: Outlook: Strong Market Position
OUTLOOK STRONG MARKET POSITION • Continued strong order backlog • Confirms good momentum • Higher level of revenue capacity established • High FTE growth last quarters, likely to stabilise • Strong focus on employee retention and recruitment • Will be further strengthened going forward • Positive ca
Slide 18: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 18
Slide 19: Appendix
APPENDIX
Slide 20: 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 21: 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 22: Financial Review: Equity Changes
FINANCIAL REVIEW EQUITY CHANGES
Slide 23: Cash & Receivables When Quarter End Falls on a Sunday
FINANCIAL REVIEW | CASH & RECEIVABLES WHEN QUARTER END FALLS ON A SUNDAY • Monthly invoicing and 30 days net. Mont end therefore due date for most payments • When due date falls on Saturday/Sunday, delayed customers normally pay on Monday • NOK 46.3 million falling due on Saturday 31 Mar recorded as
Slide 24: Financial Position: Intangible Assets
FINANCIAL POSITION INTANGIBLE ASSETS • Goodwill arisen from acquisitions of Webstep AS in 2011 and Webstep AB in 2012/13. • Customer relationships fully depreciated at 31 Dec 17 • R&D added at 31 Dec 17 and reclassified for 31 Mar 17
Slide 25: Top 20 Shareholders at 7 May 2018
TOP 20 SHAREHOLDERS AT 7 MAY 2018
Slide 26: Top 20 Shareholders: Share of Total and by Geography
TOP 20 SHAREHOLDERS SHARE OF TOTAL AND BY GEOGRAPHY AT 7 MAY 2018