Webstep As · OSL:WSTEP
Webstep As — Q3 2018 Earnings Presentation
28 slides from Webstep As's earnings presentation, Nov 8, 2018
Slide 1: Q3 2018 Presentation Webstep ASA
Q3 2018 PRESENTATION Webstep ASA OSLO, 8 NOV 2018 Kjetil Eriksen, CEO Liv Annike Kverneland, CFO
Slide 2: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 2
Slide 3: Q3 Highlights
Q3 HIGHLIGHTS • Continued revenue growth • Q3: NOK 138.1m (+11%) • YTD: NOK 487.9m (+13%) • Strong EBITDA development • Q3: NOK 8.9m (+25%) • YTD: NOK 61.3m (+19%) • High utilisation and increased rates driven by high demand • New strategic technology partnerships established • Changes in Group mana
Slide 4: Capacity and Seasonality Key Value Drivers
CAPACITY AND SEASONALITY KEY VALUE DRIVERS Revenues by quarter NOK million EBITDA by quarter 1) NOK million 28.5 Highlights Q3 175 175 166 23.9 125 138 19.5 1) • EBITDA +25% Y/Y • Driven by revenue growth, 14.0 8.9 high utilisation and higher 7.1 rates 5.5 • YTD EBITDA NOK 61.3m Q3 2017 Q4 2017 Q1 2
Slide 5: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 5
Slide 6: Business Review: Market and Customers
BUSINESS REVIEW MARKET AND CUSTOMERS Continued strong markets • High demand for core digitalisation services • Strong willingness to pay for expert IT services • Structural upward shift in rates continues New strategic technology partnerships • Increasing demand for new services • Webstep has entere
Slide 7: Enabling Future Growth, Meeting Today's Demand
ENABLING FUTURE GROWTH MEETING TODAY’S DEMAND 7
Slide 8: Fast and Secure Public Messaging Services
BUSINESS REVIEW FAST AND SECURE PUBLIC MESSAGING SERVICES KS works to realise efficient, independent and citizen-oriented public sector organisations ● Tech wise, KS is far ahead with highly innovative, public, digital solutions ● “SvarInn” and “Svarut” are KS custom made digital solutions, ensuring
Slide 9: Improved Profitability Through Use of ML and AI
BUSINESS REVIEW IMPROVED PROFITABILITY THROUGH USE OF ML AND AI Lyse produksjon uses machine learning (ML) and artificial intelligence (AI) to further optimise production planning and management ● Optimisation of reservoir management and water dispatch using machine learning ● Modelling power market
Slide 10: Easy Access Credit Facility
BUSINESS REVIEW EASY ACCESS CREDIT FACILITY The vast majority of Norwegian companies are small or medium sized. Liquidity can be a challenge, and may slow down growth and development ● Sparebanken Vest focuses heavily on bespoke solutions in its business development ● Buffer is a digital, flexible,
Slide 11: Strengthening Partnerships
BUSINESS REVIEW STRENGTHENING PARTNERSHIPS Partnerships fuel Webstep´s growth in new business areas within Cloud, Robotic Processing Automation (RPA), Machine Learning (ML), Artificial Intelligence (AI) and Internet of Things (IoT) ● Amazon Web Services Advanced Consulting Partner ○ AWS is the world
Slide 12: Employees and Organisation
BUSINESS REVIEW EMPLOYEES AND ORGANISATION Liv Annike Kverneland Rolf Helle Hans Sigvart Hansen CFO Director Business Development COO Norway ● Former PwC auditor, Certified ● Among the Webstep founders ● Former international Capgemini Public Accountant ● Experienced IT manager - program- and project
Slide 13: Employees and Organisation
BUSINESS REVIEW EMPLOYEES AND ORGANISATION Reduction in headcount from Q2 • Unexpected churn at single branch in Oslo • Securing client relations through increased use of subcontractors Centres of excellence strengthened • In cloud and new services • Increased competence sharing across regions • Imp
Slide 14: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 14
Slide 15: Financial Review: Profitable Revenue Growth
FINANCIAL REVIEW | PROFITABLE REVENUE GROWTH Comments: (Amounts in NOK million) Q3 Q3 % Q3 YTD Q3 YTD % • Revenue growth reflects 2018 2017 Change 2018 2017 Change capacity increase and higher rates Total revenues 138.1 124.9 10.5 % 487.9 430.6 13.3 % • EBITDA growth mainly due to revenue growth, Co
Slide 16: Financial Review: Norway
FINANCIAL REVIEW | NORWAY Summing up • Q3 operating revenues NOK 120.2 million (+17%) • YTD operating revenues NOK 419.8 million (+17%) • YTD EBITDA margin of 13.8% (12.9%) • Market situation remains very favorable, high order intake and backlog Revenues by quarter EBITDA by quarter1) Revenues by qu
Slide 17: Financial Review: Sweden
FINANCIAL REVIEW | SWEDEN Summing up • Q3 Operating revenues 17.8 million (-20%) • YTD Operating revenues 68.1 million (-4%) • Q3 drop mainly explained by lower capacity, less use of subcontractors and currency translation effect • Reorganisations to reduce churn • EBITDA affected by annual competen
Slide 18: Financial Review: A Capital Efficient Business
FINANCIAL REVIEW | A CAPITAL EFFICIENT BUSINESS • Strong equity position (67%) and low non-current liabilities reflect strong performance, and the refinancing in 2017 • Receivables slightly higher - Trade receivables at quarter end NOK138.3 million, up from NOK128.8 million Y/Y mainly due to higher
Slide 19: Financial Review: Cash Flow
FINANCIAL REVIEW | CASH FLOW • Solid cash flow from operations • Improved cash flow from financing activities of negative NOK 22.3 million (negative NOK 48.9 million) mainly attributable to the low debt level post IPO, offset by dividend paid in 2018 19
Slide 20: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 20
Slide 21: Outlook: New Initiatives in Strong Markets
OUTLOOK NEW INITIATIVES IN STRONG MARKETS Continued high demand • Digitalisation of private and public sectors a megatrend for IT experts • Recruitment challenges confirms market strength, recruitment prioritised • Webstep expects Q4 growth below level in Q1-Q3 2018 Several initiatives to secure new
Slide 22: Agenda
1. Highlights 2. Business review 3. Financial review 4. Outlook 5. Q&A 22
Slide 23: Appendix
APPENDIX We
Slide 24: Financial Review: Segments
FINANCIAL REVIEW | SEGMENTS NORWAY (Amounts in NOK million) Q3 2018 Q3 2017 YTD 2018 YTD 2017 FY 2017 Sales revenues 120.2 102.7 419.8 359.4 495.3 EBITDA1) 8.8 5.9 57.9 46.3 51.4 EBITDA margin1) 7.3% 5.8% 13.8% 12.9% 10.4% EBITDA excl. non-recurring costs1) 8.8 5.9 57.9 46.3 65.4 EBITDA margin excl.
Slide 25: Financial Review: Segments
EBITDA margin excl. non-recurring costs1) 7.3% 5.8% 13.8% 12.9% 13.2% Number of employees, average (FTE) 346 329 354 328 331 Number of employees, end of period 338 328 338 328 342 FINANCIAL REVIEW | SEGMENTS Number of work days, Norway (excl. vacation) EBITDA per average employee1) (tNOK) 65 25.4 65
Slide 26: Financial Review: Changes in Equity
FINANCIAL REVIEW | CHANGES IN EQUITY Foreign currency Total attributable Issued Treasury Share translation Retained to equity owners (Amounts in NOK million) capital shares premium reserve earnings parents Total equity At 1 January 2016 21.3 -0.6 32.1 8.8 135.3 196.9 196.9 Profit for the period - -
Slide 27: Top 20 Shareholders | November 2018
TOP 20 SHAREHOLDERS | 1 NOVEMBER 2018 SHAREHOLDER NAME NUMBER OF SHARES % TYPE COUNTRY GLOBAL DIGITAL HOLDING AS 3 844 255 14,3 % ORD NOR Virtus KAR International Small-Cap, The Bank of New York Mellon 3 831 491 14,2 % ORD USA VERDIPAPIRFONDET ALFRED BERG GAMBA, SEB Investor World Global Custody 1 5
Slide 28: Top Shareholders | Share of Total | By Geography
TOP 20 SHAREHOLDERS | SHARE OF TOTAL | BY GEOGRAPHY Top 20 shareholders at 1 Nov 2018 Top 20 shareholders by geography 1 Nov 2018 GBR LUX FIN SWE 32,6 % USA NOR 67,4 % TOTAL TOP 20 SHAREHOLDERS OTHER