Webstep As · OSL:WSTEP
Webstep As — Q2 2018 Earnings Presentation
28 slides from Webstep As's earnings presentation, Aug 15, 2018
Slide 1: Q2 2018 Presentation Webstep ASA
Q2 2018 PRESENTATION Webstep ASA OSLO, 15 AUG 2018 Kjetil Eriksen, CEO Anders Løken, CFO
Slide 2: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 2
Slide 3: Q2 Highlights
Q2 HIGHLIGHTS • Double digit revenue growth • Q2: NOK 174.9m (+21%) • YTD: NOK 349.8m (+14%) • Strong EBITDA development • Q2: NOK 28.5m (+43%) • YTD: NOK 52.4m (+18%) • Continued high utilisation and increased rates driven by high demand • Solid order book and growing demand for a broader range of
Slide 4: Capacity and seasonality key value drivers
CAPACITY AND SEASONALITY KEY VALUE DRIVERS Highlights Q2 • Higher capacity • Higher rates • High utilisation Other comments: • Q2: Two more working days than last year • H1:One working day less than last year 1) IPO costs and other non-recurring items of NOK 14 million recorded in Q4 2017 4
Slide 5: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 5
Slide 6: Business review: Market and services
BUSINESS REVIEW MARKET AND SERVICES • Continued favourable market situation • High order intake and backlog • High demand for core digitalisation and cloud services. • Also increased demand for New Services like machine learning, AI, Robotic Process Automation and IoT • Enabling growth through wider
Slide 7: Enabling future growth, meeting today's demand
ENABLING FUTURE GROWTH MEETING TODAY’S DEMAND 7
Slide 8: Posten Norge: Frame agreement as digital innovation partner
BUSINESS REVIEW Posten Norge: Frame agreement as digital innovation partner Posten Norge has experienced a dramatic change in the competitive landscape in the recent years • Service and product development through digitalization will be crucial in the future • As one of three suppliers, Webstep has
Slide 9: Altibox: Streaming of TV
BUSINESS REVIEW Altibox: Streaming of TV Altibox is in the middle of a revolution in distribution of media content for its customers • Crucial to be able to deliver services in all digital channels • Facilitating for distribution via Apple TV has been challenging • Webstep has assisted with its expe
Slide 10: Piscada/GK Cloud: Building automation made easy
BUSINESS REVIEW Piscada/GK Cloud: Building automation made easy Piscada/GK Cloud: “breakdown based” maintenance replaced by need-controlled and predictive maintenance trough data analytics • IoT platform for gathering information from sensors • Surveillance and monitoring via mobile and tablet platf
Slide 11: TINE: Digitalisation of the farming industry
BUSINESS REVIEW TINE: Digitalisation of the farming industry TINE sees a future where collected data from agriculture, properly utilized, will serve farmers across the world with digital solutions for more efficient and environmentally friendly food production • Great profit opportunities for farmer
Slide 12: Business review: Employees and organisation
BUSINESS REVIEW EMPLOYEES AND ORGANISATION • Increased capacity enabled high growth in H1 • Still recruiting solely experienced experts • Attractive markets drive change • High churn at one department in Oslo, replacement initiatives ongoing • Consequently, growth in H2 expected to be lower than H1
Slide 13: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 13
Slide 14: Financial review: Profitable revenue growth
FINANCIAL REVIEW | PROFITABLE REVENUE GROWTH Comments: • Revenue growth reflects capacity increase and higher rates • Depreciation and amortisation lower than 2017 as customer relationships arisen from acquisitions are fully amortised • EBITDA growth mainly due to revenue growth, high utilisation an
Slide 15: Financial review: Norway
FINANCIAL REVIEW | NORWAY Summing up • Revenue growth enabled by increased capacity, high utilisation and higher rates • EBITDA improvement driven by the revenue growth, with higher rates and high utilisation • Improved sales of New Services Revenues by quarter EBITDA by quarter 1) IPO costs and oth
Slide 16: Financial review: Sweden
FINANCIAL REVIEW | SWEDEN Summing up • Revenues slightly down, due to lower capacity • Continued strong focus on recruitment, but fierce competition about IT experts also in the Swedish market • Margin level reflects use of subcontractors, enabling new client relations • Customer-driven cross-border
Slide 17: Financial review: A capital efficient business
FINANCIAL REVIEW | A CAPITAL EFFICIENT BUSINESS • Strong equity position and low non-current liabilities • Reflects the refinancing and capital issue post IPO • Lower cash/higher receivables • Receivables falling due on Saturday 30 June paid after balance date • Approx. NOK 44 million of due amount
Slide 18: Financial review: Cash flow
FINANCIAL REVIEW | CASH FLOW • Solid cash flow from operations • Improved cash flow from financing activities, mainly attributable to the low debt level post IPO, offset by dividends paid in 2018. 18
Slide 19: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 19
Slide 20: Outlook: Unchanged growth ambitions
OUTLOOK UNCHANGED GROWTH AMBITIONS • Robust market outlook and strong order backlog • Confirms good momentum • The high demand for digitisation, cloud and integration expected to continue • Further strengthened focus on employee retention and recruitment • New market players and high demand for expe
Slide 21: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 21
Slide 22: Appendix
APPENDIX
Slide 23: Financial review: Segments
FINANCIAL REVIEW SEGMENTS 1) Adjusted for IPO costs and other non-recurring items of NOK 14.0 million in Q4 2017. See note 13 for alternative performance measures.
Slide 24: Financial review: Segments
FINANCIAL REVIEW SEGMENTS 1) Adjusted for IPO costs and other non-recurring items of NOK 14.0 million in Q4 2017. See note 13 for alternative performance measures.
Slide 25: Financial review: Equity changes
FINANCIAL REVIEW EQUITY CHANGES
Slide 26: Cash & receivables when quarter end falls on a Sunday
FINANCIAL REVIEW | CASH & RECEIVABLES WHEN QUARTER END FALLS ON A SUNDAY • Monthly invoicing and 30 days net. Month end therefore due date for most payments • When due date falls on Saturday/Sunday, delayed customers normally pay on Monday/Tuesday • NOK 43.8 million falling due on Saturday 30 June w
Slide 27: Top shareholders at Aug 2018
TOP 20 SHAREHOLDERS AT 10 AUG 2018
Slide 28: Top shareholders: share of total and by geography
TOP 20 SHAREHOLDERS SHARE OF TOTAL AND BY GEOGRAPHY AT 10 AUG 2018