Webstep As · OSL:WSTEP
Webstep As — Q4 2023 Earnings Presentation
26 slides from Webstep As's earnings presentation, Feb 15, 2024
Slide 1: Q4 and full year 2023
Q4 and full year 2023 Kjetil Bakke Eriksen, Interim CEO Ida Amalie Oma, CFO ed 15. februar 2024 - Oslo
Slide 2: Our agenda
Our agenda 01 02 03 04 Highlights Business Review Financial Review Outlook
Slide 3: Kjetil Bakke Eriksen, Webstep interim CEO
Kjetil Bakke Eriksen Webstep interim CEO ● Kjetil B. Eriksen interim CEO from november 19th 2023 Eriksen has extensive experience with Webstep as the former chair of the Board (22-23), board member, previously CEO of Webstep (06-19) and regional leader of Webstep Oslo (04-06) ● Mr Eriksen has profou
Slide 4: Highlights from the quarter
Highlights from the quarter
Slide 5: Highlights
Highlights Milestone NOK 1 billion full year revenues - cost reduction program implemented - EBIT affected by 35 MNOK in one-off costs ● Revenue ○ Q4 262.1 MNOK (+6.4%) ○ FY 2023 1,000.0 MNOK (+12.6%) ● EBIT adjusted for one-off costs ○ Q4 8.3 MNOK (-29.6%) ○ FY 2023 53.5 MNOK (-2.2%) ● EBIT actual
Slide 6: Profitability in focus
Profitability in focus Cost reduction program - estimated full year cost reduction at minimum 21 MNOK for 2024 ● Downsizing non-billable FTEs ○ Total reduction of 11 non-billable FTEs for the Group ● The temporary increase in the Norwegian employer contribution ○ From 2024 50% of full year costs cove
Slide 7: Project highlights
Project highlights Reinforced on framework agreements, promising AI and knowledge graph initiatives ● Leading a consortium of partners, Webstep secured yet another framework agreement - on software development - with Norsk Helsenett ○ Access to assignments for a wide range of public health instituti
Slide 8: Business review
Business review
Slide 9: Organisation and employees
Organisation and employees The Webstep experience going forward ● Rightsizing the organisation ○ Non-billable FTEs - less top heavy ○ Consultants in areas with reduced market demand ● Enterprise customers ○ Experienced consultants are key ○ Enterprise market creates employee opportunities ○ Cooperat
Slide 10: Financial review
Financial review yy
Slide 11: Key figures - Group
Key figures - Group Q4 Q4 Y/Y FY FY Y/Y Q4 Comments NOK million 2023 2022 change 2023 2022 change Revenues 262.1 246.4 6.4% 1,000.0 888.4 12.6% ● Stable revenue ○ Revenue from own consultants EBITDA 4.1 18.5 (77.6%) 65.7 76.2 (13.9%) ■ Q4 235.6 MNOK (+3.4%) EBITDA margin 1.6% 7.5% (5.9 pts) 6.6% 8.6%
Slide 12: Norway Q4
Norway Q4 Revenue EBIT Employee 6.7% growth -12.0% margin 6.2% growth
Slide 13: Key figures - Norway
Key figures - Norway Q4 Q4 Y/Y FY FY Y/Y Q4 Comments NOK million 2023 2022 change 2023 2022 change ● Continued, but moderate growth in Q4 Revenues 224.3 210.2 6.7% 857.7 761.6 12.6% ○ Revenue from own consultants EBIT (26.8) 10.0 (368.4%) 17.0 47.7 (64.3%) ■ Q4 206.4 MNOK (+4.2%) EBIT margin (12.0%)
Slide 14: Sweden Q4
Sweden Q4 Revenue EBIT Employee 4.3% growth 0.3% margin 4.2% growth
Slide 15: Key figures - Sweden
Key figures - Sweden Q4 Q4 Y/Y FY FY Y/Y Q4 Comments NOK million 2023 2022 change 2023 2022 change ● The deceleration in the market persists with prolonged sales cycles and reduced market Revenues 37.7 36.2 4.3% 142.3 126.9 12.2% demand EBIT 0.1 1.8 (92.9%) 1.4 6.9 (79.5%) EBIT margin 0.3% 4.9% (4.6
Slide 16: Market update and outlook
Market update and outlook
Slide 17: Webstep market update
Webstep market update date ● Challenging markets - Sweden hit harder than Norway: Long term trend of digitalisation continues ● Customer base across diversified industries and public sectors ● 44% of Webstep revenue from 10 largest Norwegian customers ● Ready to deliver on important framework agreeme
Slide 18: Outlook
Outlook W ● Firm focus on expert consultants going forward ● Optimizing sales and strengthening focus on enterprise market through streamlined organisation and salesforce ● Focus on large clients with significant digital challenges, has resulted in longer contract assignments ● Intensified and continu
Slide 19: Questions?
Questions? Please contact us at ir@webstep.com
Slide 20: Appendix
Appendix
Slide 21: A diversified customer base
A diversified customer base Private 67% Sector 33% Public Sector Top 10 customers account for 44% of total revenues 21
Slide 22: Cash flow and net debt
31 Dec Cash flow and net debt NOK million 2023 Cash and cash equivalents* (75.5) Restricted cash 1.9 Debt to credit institutions 0.0 Net interest bearing debt (NIBD)** (73.6) NIBD/EBITDA (rolling 12 months) (1.1) NIBD/EBITDA (rolling 12 months) 0.4 Including IFRS 16 Lease liabilities Note: *Negative
Slide 23: Top 20 shareholders at 12 February 2024
Top 20 shareholders at 12 February 2024 23
Slide 24: Revenue, EBIT and employee development
Revenue, EBIT and employee development Revenues (LTM) EBIT (LTM) Number of employees (EoP) 24
Slide 25: Number of employees EoP
Number of employees EoP Number of employees, end of period Q4 Q3 Q2 Q1 Q4 Norway 2023 2023 2023 2023 2022 Norway total 471 463 459 455 444 Oslo 223 221 211 205 194 Bergen 91 90 94 92 88 Trondheim 65 64 61 64 65 Stavanger 59 57 62 63 67 Sørlandet 24 22 22 21 20 Haugalandet 9 9 9 10 10 Q4 Q3 Q2 Q1 Q4
Slide 26: Disclaimer
Disclaimer This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections abo