Webstep As · OSL:WSTEP
Webstep As — Q3 2023 Earnings Presentation
25 slides from Webstep As's earnings presentation, Nov 9, 2023
Slide 1: Q3 2023
Q3 2023 Save Asmervik, CEO Ida Amalie Oma, CFO @9 November 2023 - Oslo
Slide 2: Our agenda
Our agenda 01 02 03 04 Highlights Business Review Financial Review Outlook
Slide 3: Highlights from the quarter
Highlights from the quarter
Slide 4: Highlights
Highlights Continued revenue growth,planned and executed initiatives to increase margin ● Revenue growth ○ 211.2 MNOK (+8.9%) for the quarter ○ 737.9 MNOK (+14.9%) YTD ● EBIT ○ EBIT 2.3 MNOK (-57.5%) and EBIT margin 1.1% (-1.7 pp) for the quarter ○ EBIT 45.2 MNOK (+5.4%) YTD ● Revenue development an
Slide 5: Profitability in focus
Profitability in focus Planned and executed initiatives to increase margins; estimated total cost reduction at 15-25 MNOK ● Downsizing non-billable FTEs ○ Total reduction of 9 non-billable FTEs for the Group ● Reorganizing Oslo region ○ Enhanced scaling capacity, decreased overhead costs ○ Reorganisi
Slide 6: Project highlights
Project highlights For digitalisation, deep IT competence is key Webstep's commitment to partnerships and major clients with extensive needs is well underway. Important framework agreements are landed, starting in 2024. ● Webstep is prime in a framework agreement with Posten Bring Group ○ Covering w
Slide 7: Business review
Business review
Slide 8: Leading supplier of development services
Leading supplier of development services Tougher times reinforce faith in Webstep core pillars Consultancies presently undergo a stringent stress test. We remain committed to strategy and synergies ● Senior experts rule systems development ○ Tougher times call for experienced players and core compet
Slide 9: Organization and employees
Organization and employees The Webstep experience going forward ● Strong culture, stable retention ○ Reduced headcount growth - rightsizing recruitment ○ Investments in employees to secure retention ● 566 employees at the end of Q3 2023 ○ Recruitment balanced against profitable growth ○ Experienced c
Slide 10: Financial review
Financial review yy
Slide 11: Key figures - Group
Key figures - Group Q3 Comments Q3 Q3 Y/Y YTD YTD Y/Y FY ● Continued revenue growth NOK million 2023 2022 change 2023 2022 change 2022 ○ Primarily from the Norwegian segment, Revenues 211.2 193.9 8.9% 737.9 642.0 14.9% 888.4 accounting for 87% of the consolidated revenues EBITDA 8.0 10.7 (24.8%) 61.5
Slide 12: Norway Q3
Norway Q3 Revenue EBIT Employee 11.1%growth 2.7% margin 4.2% growth
Slide 13: Key figures - Norway
Key figures - Norway Q3 Q3 Y/Y YTD YTD Y/Y FY Q3 Comments NOK million 2023 2022 change 2023 2022 change 2022 ● Stable revenue growth for the quarter 11% Revenues 184.1 165.7 11.1% 633.4 551.3 14.9% 761.6 ○ Revenue from own consultants MNOK 170 (+11%) for the quarter driven by hourly rate EBIT 5.0 4.3
Slide 14: Sweden Q3
Sweden Q3 Revenue EBIT Employee -3.9% growth -9.8% margin 13.2% growth
Slide 15: Key figures - Sweden
Key figures - Sweden Q3 Q3 Y/Y YTD YTD Y/Y FY Q3 Comments NOK million 2023 2022 change 2023 2022 change 2022 ● Market slowdown continues in the third quarter Revenues 27.1 28.3 (3.9%) 104.6 90.7 15.3% 126.9 ○ Following strong organic growth, Webstep EBIT (2.6) 1.2 (311.8%) 1.3 5.1 (74.9%) 6.9 Sweden
Slide 16: Outlook
Outlook
Slide 17: Outlook
Outlook Market Path towards further sustainable growth and profits ● Long term trend of digitalisation continues regardless of a ● Headcount growth balanced against profitability changing macroeconomic environment ● Expect to be approximately 568 employees by year end ● Webstep has a strong position
Slide 18: Questions?
Questions? Please contact us at ir@webstep.com
Slide 19: Appendix
Appendix
Slide 20: A diversified customer base
A diversified customer base Private Public 69% Sector 31% Sector 20
Slide 21: Cash flow and net debt
Cash flow and net debt 30 Sep NOK million 2023 Cash and cash equivalents* (16.9) Restricted cash 1.7 Debt to credit institutions 19.5 Net interest bearing debt (NIBD)** 4.3 NIBD/EBITDA (rolling 12 months) 0.1 NIBD/EBITDA (rolling 12 months) 1.1 Including IFRS 16 Lease liabilities Note: *Negative indi
Slide 22: Top 20 shareholders at 8 November 2023
Top 20 shareholders at 8 November 2023 22
Slide 23: Revenue, EBIT and employee development
Revenue, EBIT and employee development Revenues (LTM) EBIT (LTM) Number of employees (EoP) 23
Slide 24: Number of employees EoP
Number of employees EoP Number of employees, end of period Q3 Q2 Q1 Q4 Q3 Norway 2023 2023 2023 2022 2022 Norway total 463 459 455 444 445 Oslo 221 211 205 194 193 Bergen 90 94 92 88 86 Trondheim 64 61 64 65 64 Stavanger 57 62 63 67 72 Sørlandet 22 22 21 20 21 Haugalandet 9 9 10 10 9 Q3 Q2 Q1 Q4 Q3
Slide 25: 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