Webstep As · OSL:WSTEP
Webstep As — Q3 2020 Earnings Presentation
24 slides from Webstep As's earnings presentation, Nov 11, 2020
Slide 1: Q3 2020 Webstep ASA
Q3 2020 Webstep ASA Oslo | 11 November 2020 Arne Norheim (CEO) Liv Annike Kverneland (CFO)
Slide 2: Agenda
Agenda 1. Q3 highlights 2. Business review 3. Financial review 4. Outlook 2
Slide 3: Q3 highlights
Q3 highlights ● Revenue growth of 6.5% in Q3 and 3.7% YTD ● EBIT growth ● Market improving for IT expert services ● Headcount +11 last 12 months ● High focus on recruiting ● Continued growth in Sweden ● Solid financial position ● Dividend distribution for 2019 of NOK 1.60 per share (ex date 15 Oct) 3
Slide 4: Business review
Business review We
Slide 5: Developing for tomorrow
BUSINESS REVIEW Developing for tomorrow ● 400+ experts covering all relevant tech fields and tech roles ● Experienced consultants generously sharing their knowledge and insights ● Innovative environment mapping complicated problems with uncomplicated solutions
Slide 6: Community involvement
BUSINESS REVIEW Community involvement ● Webstep recognized as thought leader in the industry ● Live-streamed debate with 500 participants in connection with ● Editorial by CEO in Dagens Perspektiv
Slide 7: Matchmaking in the road transportation industry
BUSINESS REVIEW Matchmaking in the road transportation industry ● Webstep is developing a digital app hosted on the cloud to optimize transportation of goods by truck ● The unique UX-design is attracting users and makes it easier to connect freight carriers and buyers ensuring that more trucks are b
Slide 8: Adapting to fast-changing customer demand
BUSINESS REVIEW Adapting to fast-changing customer demand ● Webstep helped Ambita with migration to Amazon Web Services ● 10X increase in development speed to rapidly innovate and bring new customer pilots to market ● The migration resulted in a decrease in number of servers from 600 to less than ha
Slide 9: Cloud and AI solution to detect insurance fraud
BUSINESS REVIEW Cloud and AI solution to detect insurance fraud ● Webstep is developing cloud solution to support detection of insurance fraud ● Webstep is the technical partner in an innovation project led by NCE Finance Innovation ● Cloud based solution making it simple and secure for insurance co
Slide 10: Webstep helps relaunch esamverka.se
BUSINESS REVIEW Webstep helps relaunch esamverka.se ● Construction of new website through leveraging the SiteVision framework ● A more user-friendly CMS has resulted in a website that is easier to maintain ● Together with design agency Advant we have improved the accessibility eSam is a member-drive
Slide 11: Business Segment Update
BUSINESS REVIEW Business Segment Update Expert Services Solutions ● Expanded expert services into security and ● High demand for services with several new SiteVision contract deliveries ● Overall growing demand for expert ● NOK 1 million investment in “Samla”, a new developers software solution for
Slide 12: Organization and operations
BUSINESS REVIEW Organization and operations 58 Trondheim ● 418 employees at the end of Q3 2020 ○ Up 5% last 12 months (+6) ○ Bergen decline due weak market conditions and a restrictive 65 Bergen recruiting due to Covid 19 (-11) Oslo 151 Uppsala 8 (+6) ● West coast cities of Stavanger and (-) 3 Hauga
Slide 13: Skill enhancement in the era of COVID-19
Skill enhancement in the era of COVID-19 ● There has been a major increase in certifications the past few months, and this ensures a relevant mix of competencies in a market where services related to the digital shift, cloud services and change management are in demand. ● Webstep has more than 50 Pro
Slide 14: Financial review
Financial review We
Slide 15: Key figures - Group
FINANCIAL REVIEW Key figures - Group Q3 Q3 Y/Y % YTD YTD Y/Y % Q3 highlights NOK million 2020 2019 change 2020 2019 change ● Revenue growth from own consultants driven by Sales revenues 146.2 137.2 6.5% 501.6 483.7 3.7% headcount and hourly rates partly offset by lower EBITDA 6.4 4.1 55.3% 49.6 48.4
Slide 16: Key figures - Norway
FINANCIAL REVIEW Key figures - Norway Q3 Q3 Y/Y % YTD YTD Y/Y % Q3 highlights NOK million 2020 2019 change 2020 2019 change ● Revenue growth from own consultants driven by Sales revenues 124.3 118.1 5.3% 425.4 418.1 1.7% headcount and hourly rates partly offset by EBIT 1.7 1.6 9.5% 32.8 39.8 (17.5%)
Slide 17: Key figures - Sweden
FINANCIAL REVIEW Key figures - Sweden Q3 Q3 Y/Y % YTD YTD Y/Y % Q3 highlights NOK million 2020 2019 change 2020 2019 change ● Constant currency revenue growth Y/Y: Sales revenues 21.8 19.1 14.0% 76.2 65.6 16.2% ○ Increase 1.1% in Q3 EBIT 1.0 (0.1) 1085.6% 6.3 1.5 314.6% ○ Increase 5.0 % YTD EBIT marg
Slide 18: Cash flow and net debt
FINANCIAL REVIEW Cash flow and net debt Q3 highlights ( ) ● Operating cash flow decrease from NOK 36.0 million in ( ) Q3 2019 to NOK 5.7 million in 2020 ● Capex relates to office equipment ● Undrawn credit line of NOK 110 million in Norway and SEK 5 million in Sweden per end of quarter ● Dividend of NOK
Slide 19: Outlook
Outlook We
Slide 20: Outlook
Outlook ● Positive market outlook, despite new “lock-down” in Norway and Sweden ● Continued focus on retainment and recruitment: ○ Recruitment drive ongoing in all locations ○ Q4 headcount expected to be higher than Q4 2019, but flat compared to Q3 due to paused recruitment activities in Q2 ○ COVID-1
Slide 21: Appendix
Appendix We
Slide 22: Top shareholders at November 2020
APPENDIX Top 20 shareholders at 9 November 2020 Shareholder name Shares % Type Country EMBRO EIENDOM AS 7,608,735 28.6% 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 JAKOB HATTELAND HOLDING
Slide 23: A diversified customer base
APPENDIX A diversified customer base Top 10 customers represent 32.0% of total revenues – up from 23.9% in Q3 2019 23
Slide 24: 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