Webstep As · OSL:WSTEP
Webstep As — Q2 2019 Earnings Presentation
25 slides from Webstep As's earnings presentation, Aug 21, 2019
Slide 1: Q2 and H1 2019 Presentation
Q2 and H1 2019 PRESENTATION Webstep ASA OSLO, 21 AUGUST 2019 Arne Norheim, CEO Liv Annike Kverneland, CFO
Slide 2: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 2
Slide 3: Q2 and H1 Highlights
Q2 AND H1 HIGHLIGHTS • Continued strong order book and high demand • Revenues affected by calendar effects and lower capacity year-on-year • Q2 revenues: NOK 162.0m (-7.4 %) • YTD revenues: NOK 346.5m (-1.0 %) • EBITDA impacted by one-off costs and increased use of subcontractors • Q2 EBITDA: NOK 22
Slide 4: Capacity and Seasonality Key Value Drivers
CAPACITY AND SEASONALITY KEY VALUE DRIVERS Highlights Q2 • Revenue and EBITDA affected by reduced capacity and calendar effects (Easter in Q2 2019) • Higher hourly rates and increased use of subcontractors partly offset the negative effect of reduced capacity • Increased use of subcontractors and on
Slide 5: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 5
Slide 6: Business Review: Markets and Services
BUSINESS REVIEW MARKETS AND SERVICES • Strong fundamentals for continued growth • Users of IT consultants have awarded large, long-term frame agreements in the Scandinavian market in 2019, confirming high demand in the coming years • Significant long-term frame agreements awarded to Webstep • Webste
Slide 7: Customer Case: Frame agreements - green shift and digitalisation
BUSINESS REVIEW | CUSTOMER CASE Frame agreements - green shift and digitalisation It was recently announced that Statnett awarded a NOK 1.2 – 1.5 billion frame agreement to Bouvet along with Webstep and Statnett other partners Norsk Helsenett • To Statnett, strategic cooperation with leading IT comp
Slide 8: Customer Case: Smart use of data through machine learning and AI
BUSINESS REVIEW | CUSTOMER CASE Smart use of data through machine learning and AI EQUINOR Equinor invests heavily in innovation and technological development. Industrial strength is now put behind digitalisation ● Equinor’s software innovation department in Bergen utilise machine learning, model opt
Slide 9: Customer Case: Maintenance and safety software for aquaculture
BUSINESS REVIEW | CUSTOMER CASE Maintenance and safety software for the aquaculture industry Moen Marin is a leading aquaculture industry supplier. Their boats, custom fitted and designed, are considered to be among the very best in the industry • Webstep has developed Moen Marin mLINK, a web-based
Slide 10: Customer Case: Scaling and development partner for insurance
BUSINESS REVIEW | CUSTOMER CASE Scaling and development partner for life- and pension insurance digital solutions Webstep has been Danica’s systems development scaling and technology partner for the past 12 years • Danica Pensjonsforsikring AS (Danica Pensjon) is a life and pension insurance company
Slide 11: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 11
Slide 12: Financial Review: Income Statement
FINANCIAL REVIEW | INCOME STATEMENT • Revenues down due to (Amounts in NOK million) Q2 Q2 % YTD YTD % calendar effects (Q2) and 2019 2018 Change 2019 2018 Change lower capacity (Q2 and YTD) Total revenues 162.0 174.9 -7.4 % 346.5 349.8 -1.0 % • Higher hourly rates and increased use of Cost of servic
Slide 13: Financial Review: Segments - Norway
FINANCIAL REVIEW | SEGMENTS NORWAY (Amounts in NOK million) Q2 2019 Q2 2018 YTD 2019 YTD 2018 FY 2018 Sales revenues 138.4 151.9 300.0 299.6 570.3 EBITDA 20.6 27.2 42.0 49.1 75.3 EBITDA margin 14.9 % 17.9 % 14.0 % 16.4 % 13.2 % EBITDA with former principles for leasing (IAS 17) 19.6 27.2 40.1 49.1 7
Slide 14: Financial Review: Segments - Sweden
FINANCIAL REVIEW | SEGMENTS SWEDEN (Amounts in NOK million) Q2 2019 Q2 2018 YTD 2019 YTD 2018 FY 2018 Sales revenues 23.6 23.1 46.4 50.2 92.8 EBITDA 1.4 1.3 2.3 3.3 3.5 EBITDA margin 5.7 % 5.7 % 5.0 % 6.6 % 3.7 % EBITDA with former principles for leasing (IAS 17) 1.0 1.3 1.5 3.3 3.5 EBITDA margin wi
Slide 15: Financial Review: Statement of Financial Position
FINANCIAL REVIEW | STATEMENT OF FINANCIAL POSITION (Amounts in NOK million) 30 June 31 Dec (Amounts in NOK million) 30 June 31 Dec 2019 2018 2018 2019 2018 2018 ASSETS EQUITY Non-current assets Share capital 27.0 27.0 27.0 Intangible assets 383.5 382.3 387.8 Treasury shares -0.5 -0.6 -0.5 Fixed asse
Slide 16: Financial Review: Cash Flow
FINANCIAL REVIEW | CASH FLOW • Negative cash flow (Amounts in NOK million) Q2 Q2 YTD YTD YTD from operating 2019 2018 2019 2018 2018 activities YTD Operating activities mainly explained Profit/(loss) before tax 19.0 27.1 38.7 50.0 73.5 by calendar effects Adjustments for: related to which Depreciati
Slide 17: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 17
Slide 18: Outlook: A Sustained Strong Market
OUTLOOK | A SUSTAINED STRONG MARKET • Strong order book and continued high demand for IT expertise • High digitalisation activity still a growth driver, driving high demand and a heated market for recruitment of IT experts • Capacity is expected to increase in Q3 compared to Q2 • Continuous efforts
Slide 19: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 19
Slide 20: Appendix
APPENDIX
Slide 21: Effects of Implementation of IFRS 16 Leasing
EFFECTS OF IMPLEMENTATION OF IFRS 16 LEASING Amounts in NOK 1000 IFRS 16 IAS 17 IFRS 16 IAS 17 Q2 2019 Q2 2019 Q2 2018 YTD 2019 YTD 2019 YTD 2018 Operating revenues 162 032 162 032 174 936 346 464 346 464 349 802 Operating expenses (excluding depreciation and amortisation) 140 082 141 502 146 458 30
Slide 22: Financial Review: Equity Changes
FINANCIAL REVIEW | EQUITY CHANGES
Slide 23: Top 20 Shareholders at 19 August 2019
TOP 20 SHAREHOLDERS | AT 19 AUGUST 2019 Shareholder name Shares % Type Country DnB NOR Bank ASA (J.C. Broch AS and related parties) 5 923 826 22,0 Ordinary Norway Virtus KAR International Small-Cap 3 831 491 14,2 Ordinary United States VERDIPAPIRFONDET ALFRED BERG GAMBA 1 556 645 5,8 Ordinary Norway
Slide 24: Top Shareholders: Share of Total by Geography
TOP 20 SHAREHOLDERS | SHARE OF TOTAL | BY GEOGRAPHY Top 20 shareholders at 19 August 2019 Top 20 shareholders by geography at 19 August 2019 NORDIC USA 26.4 % EUR NORWAY 73.6 % Total top 20 shareholders Other
Slide 25: Enabling Future Growth, Meeting Today's Demand
ENABLING FUTURE GROWTH MEETING TODAY’S DEMAND 25