We make your work life mobile Company Presentation 18 October 2016 - PowerPoint PPT Presentation

“We make your work life mobile” Company Presentation 18 October 2016 18/10/2016 T E C H S T E P

Cautionary note regarding forward-looking statements and other risk factors This presentation includes “forward - looking” statements, including, without limitation, projections and expectations regarding Techstep’s future financial position, business strategy, plans and objectives. All forward-looking statements are based on information available to the company, and views and assessments of the company, as of the date of this presentation. Techstep expressly disclaims any obligation or undertaking to release any updates or revisions of the forward-looking statements contained herein to reflect any change in the Techstep’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. When used in this document, the words “anticipate”, “believe”, “estimate”, “expect”, “seek to” and similar expressions, as t hey relate to the Techstep, its subsidiaries or its management, are intended to identify forward-looking statements. Techstep can give no assurance as to the correctness of such forward-looking statements and forward-looking statements are not guarantees of future performance. Such forward- looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance and achievements of Techstep and its subsidiaries, or, as the case may be, the industry, to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Techstep’s present and future business strategies and the environment in which Techstep and its subsidi aries operate. Factors that could cause the Techstep’s actual result, performance or achievements to materially differ from those i n the forward- looking statements, include but are not limited to, competition, technology, products, liquidity risks, loss of key employees, intellectual property rights, ability to develop new products and/or raise additional capital. The information on slide 4 – 15 is based on the assumption of completion of the Teki Gruppen Transaction. The acquisition of Teki Gruppen’s shares and shareholder loans in Teki Solutions is subject to acceptance in an extraordinary general meeting and customary closing conditions, and any applicable third party transfer restrictions on the Teki Solution shares related to the transaction. 18/10/2016 T E C H S T E P 2

Background and the transactions The Teki Gruppen transaction: Subject to acceptance EGM The Zono transaction: Completed  On 1 July 2016 Techstep agreed to acquire 100% of the shares in  On 1st July 2016 Techstep entered into an Agreement in Zono AS in a Share Exchange Agreement, under which the Principle conditional on dd with Teki Gruppen AS to acquire an consideration for the shares takes the form of Techstep additional ~54% in Teki Solutions AS and shareholder loans from consideration shares. The transaction was approved at the Teki Gruppen AS in exchange for shares to be issued by extraordinary general meeting held 23 August 2016 completed 15 Techstep September 2016  On 5 October Techstep and Teki Gruppen entered into a firm  Zono AS is wholly owned by Zono Holding AS, a company share purchase agreement, subject to acceptance at an EGM, scheduled for 4th November, and certain customary closing controlled by Middelborg and certain other investors including Datum AS and Cipriano AS. Zono’s assets include 24.22% conditions  The transaction will increase Techstep’s ownership in Teki ownership in Teki Solutions AS, 5.12% ownership in Kjedehuset AS and approximately MNOK 55 in cash and cash equivalents Solutions AS with 53.94% to 78.16%.  The transaction was financed through issuance of approximately  The proposed consideration for the transaction is in full Techstep 58 million new shares shares at a share price of NOK 4,30 as agreed in the Agreement in Principle. If accepted by the EGM, sellers will receive approx. 30.1m shares in Techstep or 29.33%  The board of Techstep has further expressed the intention to The Birdstep AB transaction: Completed present an offer to acquire the shares and shareholder loans  On 7 April 2016, Techstep announced the completion of the sale from the remaining shareholders in Teki Solutions on the same of Birdstep AB to Smith Micro terms and conditions as in the Teki Gruppen transaction. Subject  In relation to the transaction, Techstep entered into a partnership to full acceptance, this would result in further approx. 7.3m shares in Techstep agreement with Smith Micro to among other things continue the use of the Birdstep technology in the Nordics 18/10/2016 T E C H S T E P 3

Techstep in brief Company structure About Techstep  Through the two transactions, Techstep will establish itself Simplified to key operational units subject to completion of the Teki Gruppen transaction as a leading B2B provider mobility and communications services in Norway  Nordialog is Telenor’s key distribution channel of devices TECH STEP and subscriptions to the Norwegian business segment:  Teki Solutions accounts for ~60% of the total Nordialog distribution volume in Norway 8.25% 78.16%  Teki Solutions operates through 10 business centres located in eastern Norway and currently employs ~100 Kjedehuset AS Teki Solutions AS 1)  Smartworks delivers services and solutions within the Of which 3.13% is owned through 24.22% ownership via Zono AS, subsidiaries in the Teki Solutions 100% owned by Techstep “Enterprise Mobility Management”: Group  Offers mobility digitalisation solutions through 3 rd party software, among others Smith Micro, where Techstep’s previous technology is a key delivery area  Located in Oslo and currently employs ~30 Teki Nordialog SmartWorks Hardware organisation Solutions organisation  The group has a combined customer base of ~3 600 companies and ~220 000 end users  Kjedehuset is Telenor’s franchise organisation of which Teki Nordialog is a franchisee 18/10/2016 T E C H S T E P 4 1) Teki Solutions AS including subsidiaries is denoted as “ Teki Solutions Group”

The telecom industry is facing a paradigm shift Infrastructure is Market for hardware Mobile devices to play Mobility becoming commodity sales is stabilising key role in digitisation BNOK revenue source in Norwegian telecom BNOK revenue source in Norwegian telecom Example parameter: Exponential development Percentage of data connection per unique market shifting towards fixed fee market in mobile data use (GB/capita) session in Norway Smartphones Other Data 65% 70 Other phones Fixed fee Minute & SMS fee Mobile Tablets 60 60% 4,1 17 devices 16 16 16 16 Smartphones 15 15 15 15 50 14 (millions) 3,4 55% 13 2,8 40 2,7 2,5 2,5 50% 2,4 2,4 2,3 30 45% 20 40% PC 10 World 0 Jan-14 Jan-15 Jan-16 Jan-17 2005 2007 2009 2011 2013 2015 2010 2012 2014 2016E 2007 2009 2011 2013 2015  Telecom’s business model has  After strong growth in smartphone  Smartphones and tablets are used  The market is undergoing shifted from payment per SMS and tablet sales in Norway, annual to an increasing extent in work disruptive shifts where work is and calls per minute towards a sales market penetration are and day to day life on the expense increasingly mobile fixed monthly fee stabilising of computers  Value proposition is changing to a  Limited differentiation between  Revenue potential is shifting from  Effective use of hardware and fragmented ecosystem of digital network quality sales of hardware to servicing software is increasingly important solutions and service providers installed base for businesses  Soon SIM cards will disappear  Upside in Hardware sale from and reduce switching cost between operators industrial automation/digitalisation Power balance is shifting from infrastructure to providing value added services Sources: Norwegian Communications Authority, Elektronikkbransjen, TNS Gallup, Swedish Post and Telecom Authority, Danish Business Authority, 18/10/2016 T E C H S T E P 5 Finnish Communications Regulatory Authority, Cisco, OECD, GSMA

Segment overview Teki Solutions AS Group unaudited pro-forma IFRS adjusted figures 1) Hardware (low gross margin) Solutions (high gross margin) Revenue (MNOK) Revenue (MNOK) 591 Commission & bonus 532 436 60 37 248 29 20 2013 2014 2015 1H 2016 2013 2014 2015 1H 2016 Offering Offering Design & Implementation Operations & Terminal sales Subscriptions integration support  Solution design  Project management  Operation  Advisory services  Communication  Device & app mgmt.  Training  Support  Track effectiveness  Customer center  B2B sales of mobile phones,  Commission and bonus from Key components tablets and related hardware operator  Security & mobility applications  Video communication  AAA 2)  Office 365 & Hosted Lync  Call center solutions  Servers & networks 18/10/2016 T E C H S T E P 1) Does not correlate directly with legal structure, certain elements 6 2) Authentication, authorisation & accounting of historic split are estimated