Webstep As · OSL:WSTEP
Webstep As — Q4 2019 Earnings Presentation
28 slides from Webstep As's earnings presentation, Feb 12, 2020
Slide 1: Q4 and Full Year 2019
Q4 and Full Year 2019 Webstep ASA Oslo 12 February 2020 Arne Norheim (CEO) Liv Annike Kverneland (CFO)
Slide 2: Agenda
1. Q4 and Full Year Highlights 2. Business Review 3. Financial Review 4. Outlook 5. Q&A
Slide 3: Q4 and Full Year Highlights
Q4 AND FULL YEAR HIGHLIGHTS ▪ Revenues flat in 2019 ▪ Q4 revenues: NOK 176.8 million (+0.9 per cent) ▪ 2019 revenues: NOK 660.5 million (-0.4 per cent) ▪ EBITDA impacted by costs of growth initiatives ▪ Q4 EBITDA: NOK 12.0 million (-31.4 per cent) ▪ 2019 EBITDA: NOK 60.4 million (-23.3 per cent) ▪ C
Slide 4: Q4 Key Value Drivers
Q4 KEY VALUE DRIVERS Revenues by quarter (NOK million) 175.3 ‘844 176.8 162.0 | Q42018 = Q12019 2.2019 Q3 2019 a4 2019 Working days by quarter, Norway (excl. vacation) 66 62 63 58 62 a4 2018 Qt 2019 a2.2019 a3 2019 Q4 2019 EBITDA by quarter (NOK million) 22.3 22.0 175 12.0 42018 = 12019 —-Q2.2019 Q3
Slide 5: Agenda
1. Q4 and Full Year Highlights 2. Business Review 3. Financial Review 4. Outlook 5. Q&A
Slide 6: Continued progress in all business areas
Business Review Continued progress in all business areas Technology Experts Solutions Tech-Advisory & - Management ▪ Continued high demand ▪ Promising pipeline developed in Q4 ▪ Webstep awarded the Amazon ▪ Recently published IT trend ▪ Strategic partner contracts signed Web Services (AWS) Well- rep
Slide 7: Customer cases showing innovative utilisation of technology
Business Review Customer cases showing innovative utilisation of technology Bergene Holm is a leading vendor of lumber ✓ Webstep Solutions and Advisory delivery: ▪ Document the information flow in the company ▪ Lead the way in digitalisation of the company ▪ Identify opportunities to automate and in
Slide 8: Customer cases showing innovative utilisation of technology
Business Review Customer cases showing innovative utilisation of technology Statens Vegvesen (SVV) works to create a smarter transportation system ✓ Webstep Advisory delivery: ▪ Implementing a new regional reform has consequences for many of the SVV IT-systems ▪ Project management and monitoring act
Slide 9: Back to Y/Y growth in employees
Business Review Back to Y/Y growth in employees ▪ 409 employees at year end, up by 15 employees year-over-year ▪ Employee share purchase program in Q4: 192 employees participated in the 15 Trondheim 52 program and 120,383 treasury shares were sold (+6) Sundsvall 1 (+1)* ▪ Important project completed
Slide 10: Agenda
1. Q4 and Full Year Highlights 2. Business Review 3. Financial Review 4. Outlook 5. Q&A
Slide 11: Key Figures
Financial Review Key Figures Q4 Q4 Y/Y % FY FY Y/Y % NOK million 2019 2018 growth 2019 2018 growth Q4 and Full Year Highlights Sales revenues 176.8 175.3 0.9% 660.5 663.2 (0.4%) ▪ Revenues in Q4 up 0.9% year-over-year: EBITDA 12.0 17.5 (31.4%) 60.4 78.8 (23.3%) - Revenues from own consultants up NOK
Slide 12: Norway
Financial Review Norway Q4 Q4 Y/Y % FY FY Y/Y % NOK million 2019 2018 growth 2019 2018 growth Q4 and Full Year Highlights Sales revenues 152.2 150.5 1.1% 570.3 570.3 0.0% ▪ Norway accounts for 86 % of total revenues EBITDA 9.7 17.5 (44.4%) 55.5 75.3 (26.3%) EBITDA margin 6.4% 11.6% 9.7% 13.2% ▪ Reve
Slide 13: Sweden
Financial Review Sweden Q4 Q4 Y/Y % FY FY Y/Y % NOK million 2019 2018 growth 2019 2018 growth Q4 and Full Year Highlights Sales revenues 24.7 24.8 (0.4%) 90.2 92.8 (2.8%) ▪ Sweden accounts for 14 % of total revenues EBITDA 2.3 0.0 n.m. 4.9 3.5 41.4% EBITDA margin 9.4% 0.2% 5.4% 3.7% ▪ Revenues in Q4
Slide 14: Cash Flow and Net Debt position
Financial Review Cash Flow and Net Debt position Cash flow bridge 2019 Highlights ▪ Operating cash flows affected by change in trade receivables and other liabilities, and reduced profit ▪ Capex relates to office equipment and upgrading of office space ▪ Leasing liabilities (office rentals and compa
Slide 15: Agenda
1. Q4 and Full Year Highlights 2. Business Review 3. Financial Review 4. Outlook 5. Q&A
Slide 16: Outlook
Financial Review Outlook ▪ Continued high demand for IT expert services: - Webstep has a robust order book into 2020 - Growing pipeline for Webstep Solutions ▪ Growth in headcount expected to continue in Q1 ▪ Higher average number of employees and reduced dependency of subcontractors compared to Q1
Slide 17: Agenda
1. Q4 and Full Year Highlights 2. Business Review 3. Financial Review 4. Outlook 5. Q&A
Slide 18: Appendix
APPENDIX
Slide 19: Consolidated Income Statement
Appendix Consolidated Income Statement NOK million Q4 2019 Q4 2018 FY 2019 FY 2018 Total revenues 176.8 175.3 660.5 663.2 Cost of services and goods (22.6) (25.4) (84.2) (70.6) Salaries and personnel cost (129.3) (119.3) (474.2) (470.8) Depreciation and amortisation (4.2) (1.0) (11.3) (2.9) Other op
Slide 20: Consolidated Statement of Financial Position
Appendix Consolidated Statement of Financial Position NOK million 31.12.2019 31.12.2018 NOK million 31.12.2019 31.12.2018 ASSETS EQUITY Intangible assets 384.5 387.8 Share capital 27.0 27.0 Fixed assets 5.9 5.0 Treasury shares (0.3) (0.5) Right-of-use assets 37.2 - Share premium 156.9 154.0 Non-curr
Slide 21: Consolidated Statement of Changes in Equity
Appendix Consolidated Statement of Changes in Equity Total Foreign attributable currency to equity Non- Issued Treasury Share transalation Retained holders of controlling Total NOK million capital shares premium reserve earnings the parent intersest equity At 1 January 2018 27.0 (0.6) 149.8 12.4 169
Slide 22: Consolidated Statement of Cash Flow
Appendix Consolidated Statement of Cash Flow NOK million Q4 2019 Q4 2018 FY 2019 FY 2018 Operating activities Profit/(loss) before tax 7.1 15.9 46.6 73.5 Adjustments for: Depreciation of property, plant and equipment 4.2 1.0 11.3 2.9 Net change in trade and other receivables (0.3) 33.2 (3.6) 20.9 Ne
Slide 23: IFRS 16 Leasing - Effects of implementation
Appendix IFRS 16 Leasing - Effects of implementation IFRS 16 IAS 17 IFRS 16 IAS 17 NOK million Q4 2019 Q4 2019 Q4 2018 FY 2019 FY 2019 FY 2018 Operating revenues 176.8 176.8 175.3 660.5 660.5 663.2 Operating expenses (excl. depreciation and amortisation) (164.8) (168.1) (157.8) (600.1) (607.8) (584.
Slide 24: Alternative Performance Measures (1/3)
Appendix Alternative Performance Measures (1/3) Webstep discloses alternative performance measures as a supplement to the financial statements prepared in accordance with IFRS. Webstep believes that the alternative performance measures provide useful supplemental information to management, investors
Slide 25: Alternative Performance Measures (2/3)
Appendix Alternative Performance Measures (2/3) Q4 Q4 FY FY NOK million 2019 2018 2019 2018 Profit measures – EBITDA Operating profit 7.8 16.5 49.1 75.9 Depreciation and amortisation 4.2 1.0 11.3 2.9 EBITDA 12.0 17.5 60.4 78.8 Profit measures – EBITDA Operating profit IFRS 16 (2019) 7.8 - 49.1 - Dep
Slide 26: Alternative Performance Measures (3/3)
Appendix Alternative Performance Measures (3/3) 31 Dec 31 Dec NOK million 2019 2018 Net interest bearing debt (NIBD) Cash and cash equivalents (negative indicates positive amount) (25.5) (33.5) Restricted cash 0.8 0.5 Debt to credit institutions - - Net interest bearing debt (24.7) (33.0) Group equi
Slide 27: Top 20 shareholders at 7 February 2020
Appendix Top 20 shareholders at 7 Februar 2020 Shareholder name Shares % Type Country J.C. Broch AS and related parties 6,848,350 25.4% Ordinary Norway Virtus KAR International Small-Cap 3,119,279 11.6% Ordinary United States VERDIPAPIRFONDET ALFRED BERG GAMBA 1,556,645 5.8% Ordinary Norway HANDELSB
Slide 28: Disclaimer
Disclaimer This presentation contains statements regarding the future in connection with Webstep’s growth initiatives, profit figures, outlook, strategies and objectives. The forward-looking statements are based on the current group structure and accounting standards as of 31 December 2019. All stat