XOSL:TECH ESEF Annual Report
TECHSTEP ASA (XOSL:TECH)
ESEF Annual Report
2022-03-30
For: 2021-12-31
View Original
Added on
October 01, 2026
Annual report 2021
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Annual report 2021
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Annual report 2021
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Annual report 2021
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Contents
This is Techstep
5
Key figures
8
Letter from the CEO
9
Sustainability
12
Corporate governance report
28
Executive management
36
Board of Directors
39
Board of Directors' Report
41
Responsibility statement
49
Consolidated financial statements
50
Notes to the financial statements
57
Techstep ASA financial statements
123
Techstep ASA Notes to the financial statements
128
Alternative performance measures
137
Auditor’s Report
141
GRI Index
148
Annual report 2021
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This is Techstep
Techstep is a complete mobile technology enabler, making positive
changes to the world of work; freeing people to work more effectively,
securely, and sustainably.
Traditional boundaries of where and when we work are continuously being eroded. However, a lack
of digital maturity and legacy technology are still holding many businesses back.
At Techstep we help customers who want to work smarter, while also delivering on their ESG
commitments. By bundling mobile devices, software, information security, and expertise, we help
customers to realise their organisations’ potential through deploying the right mobile work tools to
the right employees, ensuring more effective work and more engaged employees. By offering a
complete end-to-end device lifecycle handling, we enable full overview and cost control in relation
to the procurement, use, and secure second-hand use or recycling of mobile hardware.
Built on a decade of telecoms and mobile technology expertise, Techstep was established in 2016.
Through several acquisitions, we have consolidated and expanded into the Nordic and later
European markets adding IP, own software, and security expertise to the benefit of our customers.
Our goal is to be the leading European mobile technology enabler for customers that want to work
smarter and more sustainably.
Annual report 2021
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Our product offering
SmartControl
It's essential that organisations have a complete overview and absolute control of the mobile
devices used by their workforce. Settings, software, and information security all need to be
configured according to the needs of the organisation and user roles. SmartControl is Techstep’s
management software that gives organisations the capability to precisely configure their mobile
devices so that apps, roles, user groups and policies are optimised for performance and information
security.
SmartWorks
Embracing mobile technology is essential for organisations to grow and flourish. And to deliver on
their commitment of quality and efficiency, the mobile workforce needs a range of software and
hardware solutions that work together, seamlessly. SmartWorks is Techstep’s answer for sectors
reliant on large-scale mobile, often desk-less, workforces. Our SmartWorks team analyses every
aspect of the mobile technology requirements and creates the right software and hardware
solutions that future-proof the strategy to ensure that organisations have the mobile technologies
that deliver on their promises.
SmartDevice
We understand the need to swiftly procure and manage the lifecycle of hundreds or even thousands
of mobile devices. To make the most of the investment, organisations need to be confident that total
lifetime costs have been factored into the calculations. And finally, when the time comes, they need
the reassurance that devices are reused or recycled responsibly. SmartDevice is Techstep’s
complete mobile device lifecycle solution. Our end-to-end solution makes purchasing, supporting,
and recycling mobile devices secure and easy.
Annual report 2021
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Techstep at a glance
Techstep’s headquarters are in Oslo, Norway. Our employees are working from different locations in
Norway, Sweden, Denmark, and Poland, serving more than 2,000 enterprise customers throughout
Europe.
Our strategy
Techstep is transforming its business model from transactional revenue to a recurring revenue
model. This will enhance financial predictability for Techstep, while at the same time ensure better
value for our customers by providing them with a continuous service rather than on-off transactions.
This thus, results in closer relationships with our customers and greater loyalty.
By redesigning and streamlining the product offering, we will win new customers and secure existing
ones through investing in our own IP, software, and mobility expertise, and continue to pursue M&A
opportunities to further add attractive capabilities and expand geographically.
Driven by value-creating services and economies of scale, as the company continues to grow, our
goal is to improve gross margins and profitability significantly over the long-term.
Strategic pillars
Grow profitably
while
transforming
towards recurring
revenue
Win with a
software-led
standardised, and
scalable product
portfolio
Attract, develop, and
retain customers by
always putting them
first
Engage leaders and
employees that through
trust and common goals
drive a high-
performance culture
Annual report 2021
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Key figures
(Amounts in NOK 1000)
FY 2021
FY 2020
Revenues
1 305 090
1 142 866
Annual Recurring Revenue (ARR) - own software
97 473
63 329
Gross profit
459 785
378 287
EBITDA adjusted
1
69 616
95 640
EBITDA rep.
52 430
104 455
EBITA
-55 799
17 122
EBIT
-110 522
-10 771
Net profit (loss) for the period
-102 660
-23 557
EBITDA adj. margin (%)
5.3 %
8.4 %
EBITDA rep. margin (%)
4.0 %
9.1 %
EBITA margin (%)
-4.3 %
1.5 %
EBIT margin (%)
-8.5 %
-0.9 %
Net profit (loss) for the period (%)
-7.9 %
-2.1 %
Cash and cash equivalents*
50 350
27 203
Net interest-bearing debt
121 600
166 838
Capex
2
48 883
21 386
Employees
341
289
Refer to Alternative performance measures for definitions.
1) EBITDA adjusted in 2021 excludes non-recurring items such as M&A and restructuring costs. 2020 EBITDA adjusted excludes non-
recurring items such as M&A related costs of NOK 9 million, an earn-out reversal (other income) of NOK 4.9 million, carve out-IT
gain of NOK 8 million and a gain from the sale of an office building in Sweden of NOK 4.8 million.
2) Capex includes software development and IT-related capex, and not hardware-as-a-service to customers, booked as capex
under IFRS 16.
The Optidev acquisition is included in the financial statements from Q4 2020 and the Famoc acquisition is included in the
financial statements from Q3 2021.
Annual report 2021
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Annual report 2021
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We are making the world of work smarter and
more sustainable
Dear investors and stakeholders,
2021 has been an important year for Techstep. We are transforming our business
model from transactional sales to selling our product offering as a recurring
revenue bundle. The market opportunity is growing, and we are sharpening our
products and go-to-market strategy to capture it in the best possible way.
Following expansions, we now have ~350 employees across Norway, Sweden,
Denmark and Poland, serving more than 2,000 enterprises in industries across
the private and public sector. Our market reach now covers both the Nordics and
Europe, a market that is expected to see double-digit growth towards 2025.
Clear mission for positive change
Techstep’s mission is to make positive
changes to the world of work through mobile
technologies, freeing people to work more
effectively, securely and sustainably.
At Techstep, we continuously improve our
products by utilising mobile technology
innovations, resulting in user friendly solutions,
tools and applications that enable people to
work smarter.
Strong offering
with new branding
We saw an increased commercial momentum
second half of 2021 and signed in total 33
managed mobility service contracts in 2021.
With the increased commercial momentum,
the pipeline for 2022 has also been
strengthened. Based on improved commercial
momentum, we are optimistic and looking
forward to converting these opportunities into
new business for Techstep.
A lot has happened in Techstep during 2021. We
have a new management team aligned with
our software-led growth strategy and a new
product offering. In the beginning of March this
year, after efforts throughout 2021, we
launched the rebranding of Techstep. The
rebranding gives a clearer message, storyline
and position of how we support customers
through smarter mobile technology for a
brighter tomorrow through our “Smart”
product portfolio.
With the changes we are making, we are
confident that our commercial momentum will
continue to improve over time. Through 2021,
we have streamlined the organisation towards
delivering customer value and strengthened
the management team with specialist roles in
both marketing and sales. With the
restructuring, we are also shifting our
investment towards the commercial division
and optimising the supporting systems and
generation of leads.
Annual report 2021
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We passionately believe that our mobile
technology solutions will drive positive change
for organisations, while supporting them to
deliver on their ESG commitment. Mobile
technology makes employees happier and
more productive by freeing them up to work
smarter. By making our solutions sustainable
we’re fulfilling our responsibility to future
generations. We will translate this into
commercial success stories for our customers,
and for Techstep.
On a transformation journey
Techstep’s financial results are not at the level
where we want to see them. While
transforming towards recurring revenue it is
important to focus on the underlying factors
that show that we are on right track like
number of leads, sales bookings,
implementation, ARR growth, scalability, etc.
Our 2021 results reflect ongoing restructuring
and transformation but will start to improve.
Our recurring revenue business model and
higher margin software and value-adding
services are increasingly adopted by our
customers across our markets. We will need to
complete the implementation and
optimisation of our ERP and CRM systems, and
not least get our new management team in
place to accelerate our market penetration.
We have established four strategic pillars to
guide change. Techstep will grow profitably
while transforming to a recurring revenue
business model. We will win new customers
with a software-led standardised, scalable
product portfolio and attract, develop, and
retain customers by always putting them first.
Lastly, we will engage leaders and employees
through trust and common goals, driving a
high-performance culture.
Creating sustainable solutions
We strongly believe in building sustainable
solutions for today and for the future to deliver
great value for our customers. Our solutions
help our customers to work smarter and
purchase with a clear conscience software
and devices. To be able to succeed with
lifecycle management, this needs to be part
of an automated system. This helps
organisations to reduce the environmental
footprint, deliver better value to their
employees and save time and money.
Growing market opportunity
With the acquisition of Famoc, Techstep has
truly entered the European Managed Mobility
Service market, a market that is expected to
have an annual growth of 24% in the next five
years. Focus areas are data privacy, security
and sustainability, which we believe will be a
good fit with our new product offering.
The leading mobile technology
enabler
Techstep has a goal of being the leading
European mobile technology enabler for
customers that want to work smarter and
more sustainably. This energises Techstep’s
team of more than 350 dedicated mobile
technology experts every day, and we are
highly motivated to continue delivering on our
growth journey and create stakeholder value
in the years to come.
Annual report 2021
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Sustainability
In Techstep, we aim to be a positive agent for change in society by
making the world of work smarter and more sustainable.
Sustainability at Techstep is about helping customers deliver on their ESG commitments, but it is also
about using resources in a way where they aren’t depleted over time. It is about taking care of
people and the environment, both today and in the future.
We believe that our mobile technology solutions help customers get the most out of the devices they
buy in a way that reduce environmental impacts. We also have a great opportunity to improve
people’s life by freeing them to work more effectively and securely while we protect company and
customer data. At the same time, we consider responsible business practices a prerequisite for
long-term successful operations. This means we need to take care of and develop our people and
ensure that we are not involved in any activities with adverse impacts on human and labour rights or
corruption.
About this report
This report is prepared in alignment with the Global
Reporting Initiative (GRI) standards and covers our
efforts to identify our most material environmental,
social and governance (ESG) issues and articulate
our sustainability priorities. It also establishes a
baseline from which we will enhance both our
performance and disclosure in the years to come and
details our efforts in the year that passed. All entities
in the group is included in the figures for 2021. Going
forward, we will continue to set concrete goals, scale
our initiatives, and launch new programmes that will
help us, our customers and other stakeholders make
the world of work smarter and more sustainable. We
will also gather stakeholder feedback to continuously
improve and sharpen our focus.
Annual report 2021
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Highlights
Goals 2022
Results 2021
SDGs
Commitment
Signed UN Global Compact in
Q1 22, educate organisation on
responsible business practices
during the year
Embedded sustainability in
corporate strategy and
strengthened focus on ESG, incl.
materiality, priorities & metrics
Climate action
Circular economy
Grow #
“
HW as-a-service
”
#
“
end-of-life returns
”
End-of-life returns: 15,149;
handprint of ~1,188t CO
2
Energy usage &
GHG emissions
Improve climate accountancy
and define measures
Design innovative software
solutions helping customers
reduce their footprint
Baseline established in 2021, total
GHG emissions 11,310 tCO
2
People
&
Diversity &
inclusion
25% female employees by end
of 2022. By Q1 2022, EMT had
33% women
23% female employees
Employee
engagement
Employee engagement score
at 8.0 of 10
7.4 of 10
Digital literacy &
skills in society
Educate more people on
advantages mobile technology
offers
Close to 2,500 people attended
events hosted by Techstep
Trusted business partner
Cybersecurity
&
data privacy
Systematic risk-based
information security
management
Commenced ISO 27001 project
100% of employees conduct
security training
92% completed training
Supply chain
responsibility
Strengthen supply chain
management, rollout new
Supplier Code of Conduct
Increased focus on transparency
and risk in supply chain
Business ethics &
anti-corruption
100% of organisation attend
ethics and anti-corruption
training in 2022
100% of employees signed CoC
Annual report 2021
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Corporate governance and sustainability management
During 2021 and early 2022, we initiated an upgrade of our ESG policies and procedures to reflect the
new strategic direction and align it better with increased focus on sustainability in the organisation.
Our work is to be based on international frameworks such as the UN Global Compact, which we signed
in February 2022, the UN Guiding Principles on Business and Human Rights, and the UN Sustainable
Development Goals.
The Board of Directors has the overall responsibility for aligning Techstep’s strategy and ESG
considerations. Converting principles into day-to-day operations lies with the CEO, supported by the
executive management group. The executive management sets overall goals and measures for their
respective business units, which are anchored at the Board level. Each executive is responsible for
communicating these to everyone in their respective business units and ensure compliance with our
policies.
Until late 2021, most of the ESG work was managed by the local subsidiaries. With the new
organisational structure, this has been moved up to the Group level, and policies and procedures need
to be revised and developed to reflect the new strategy and organisation going forward. Techstep has
also hired a dedicated resource to support its increased focus on ESG to ensure sufficient focus on
driving sustainability and advancing Techstep’s ESG programme, as well as to ensure compliance
with internal and external requirements.
Our compliance function is responsible for monitoring compliance risk and plays both an advisory
and supervisory role. The function reports to the CFO and the audit committee. Among its activities
are ongoing monitoring, identification and internal communication of statutory and regulatory
changes relevant to Techstep. The compliance function is also responsible for the group’s
environmental and quality management systems. These will be subject to review in 2022 to align with
the new group structure and ensure robust processes for goal attainment. We have also hired a Chief
Information Security Officer (CISO) from Q2 2022, who will be responsible for the information security
management system.
Techstep adheres to the Norwegian Code of Practice for Corporate Governance issued by the
Norwegian Corporate Governance Board (NCGB). A separate report on Techstep’s corporate
governance practices is included as a separate chapter in this annual report.
Annual report 2021
15
Stakeholder dialogue and material topics
Continuous dialogue with our stakeholders is considered crucial for sustainable growth, ensuring
valuable insight and opportunities for improvement. Our main stakeholders are customers,
employees, investors, the board, suppliers, and other business partners.
In 2021, we conducted a materiality assessment to identify the sustainability topics that are most
material to our business and our stakeholders. The topics included in the process were selected based
on requirements and information requests from customers and investors, peer and industry
benchmarks, international reporting frameworks and standards such as Global Reporting Initiative
(GRI) and Sustainability Accounting Standards Board (SASB), legal requirements and new
sustainability legislation. The materiality assessment has helped us identify topics which are
considered to have a significant impact for Techstep’s long-term business success.
Material topics identified:
We consider the prioritisation based on materiality assessments a dynamic process and will
continuously adjust our priorities and actions based on company developments, changing legislation,
stakeholder feedback and developments in sustainability/ESG frameworks.
EU Taxonomy
The EU taxonomy is a classification system with a list of environmentally sustainable economic
activities and an important enabler to scale up sustainable investment and implement the European
Green Deal. Techstep will be required to disclose to what extent its turnover, investments and
operational costs are aligned with the EU taxonomy criteria, which is expected from 2023/24. In 2022,
we will assess eligibility of our solutions and prepare for aligning reporting with the EU taxonomy.
Annual report 2021
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UN Sustainable Development Goals (SDGs)
We are committed to a real impact that benefits society, and the Sustainable Development Goals
(SDGs) help us chart our sustainability course. We have mapped our business and strategy against
the SDGs to establish the most relevant SDGs for Techstep. We have assessed SDG 12 as the most
important to prioritise, as our solutions directly relate to responsible consumption of mobile devices.
Other SDGs, such as SDGs 5, 8 and 13, are also considered relevant to Techstep. For all SDGs, our
guiding principle is to support the achievement of these goals where Techstep has a role to play,
either by minimising our negative impact or by maximising our positive impact.
We have incorporated sustainability in our corporate strategy. One of our key solutions,
«SmartDevice» promotes circularity and responsible consumption of mobile devices
through life-cycle management and proper end-of-life handling. Educating customers
and employees on sustainable consumption is a priority going forward (target 12.1)
We design innovative solutions helping customers reduce their environmental impact.
By establishing a climate accounting baseline, we will identify areas for reducing our
climate footprint (target 13.1)
We have initiated a process for assessing and mitigating the environmental impact of
products we sell by tracking and reporting resource consumption. Through
“SmartDevice”, we encourage customers to proper end-of-life handling, and thus
contribute to improved resource efficiency and resource security (target 8.4)
We set high internal standards and assess suppliers to ensure human and labor
relations are protected in our supply chain, which is reflected by our commitment to UN
Global Compact (target 8.5)
We promote diversity, inclusion and equal opportunities in recruitment and employee
development, and have established initiatives to attract more women to pursue a
career within technology (target 5.1 and 5.5)
Annual report 2021
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Climate impact
We are committed to responsible use of resources and will work actively to prevent risks that can
lead to negative environmental impact. All our activities are carried out in compliance with
applicable laws, regulations, standards, and other environmental requirements.
Solutions supporting responsible consumption and circularity
Mobile devices represent major environmental concerns, with 85-95% of the carbon emissions
occurring in the manufacturing or disposal process. Embedded in the devices are several rare-earth
and critical materials such as gold, copper, silver, tungsten, and tin – resources that could be
recovered and returned to the production cycle. In addition, global electronic waste represents a
substantially growing environmental challenge. Thus, by applying circular economy principles and
extending the devices’ lifespan, we can effectively contribute to reducing their environmental
impact.
Circular principles and lifecycle management are part of Techstep’s core offerings. Our
“SmartDevice” solution is designed to improve life-cycle management of an organisation’s device
fleet including updating, upgrading, and repairing until end-of-life. Customers are encouraged to
purchase devices “as-a-service”, as this ensures the devices are properly returned for reuse or
recycling. We cooperate with certified partners specialised in refurbishment and resale of used
devices, to redeploy them into the second-hand market. For some niche products, we have
developed our own ability to recover spare parts and handle the repair and recycling. By giving units
a second life, we extend devices’ lifetime, while allowing more people get access to mobile
technology at an affordable cost. Devices that cannot be reused any more are properly handled for
recycling, in accordance with the Waste Electrical and Electronic Equipment (WEEE) directive.
Going forward, we will increase end-of-life returns and intensify collaboration with manufacturers
and strategic partners to improve circularity along the value chain.
Mobile devices handled through take-back solution in 2021
Note: Figures include smartphones, tablets and pc laptops. Estimated avoided emissions (handprint) is based on calculations from our reseller
partners
Annual report 2021
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Sustainable mobile technology solutions
Responsible consumption is also about optimising the use of mobile devices and using mobile
technology to work smarter and more sustainably. Techstep’s “SmartWorks” concept help customers
reduce their environmental footprint through the design of innovative and tailormade industry
solutions.
An example is the development of an application for one of our largest customers regarding route
optimisation of "last mileage distribution", which implies a reduced environmental impact thanks to
shorter transport routes. Another example is the deployment of an application for a major airline
company, where a 20 kg paper manual was digitised and replaced with a tablet. The environmental
gains include an annual saving of 1,900 trees and a reduction of 1.2 million litres fuel for the aircraft
fleet.
Establishment of climate emissions (GHG) baseline
In 2021, we established a group-wide climate accountancy to get an overview of our direct and
indirect emissions and a baseline for reduction initiatives. The accountancy is based on the
Greenhouse Gas Protocol, and includes our Scope 1, 2 and 3 emissions
1
.
Tonne CO
2
-eqv. emissions
2021
2020
2
Scope 1 - Direct emissions
Direct emissions from owned cars
8.3
Scope 2 - Indirect emissions from purchased electricity for own use
Electricity
8.3
Electric vehicles
1.1
Scope 3 - Other indirect emissions
Waste
-
Business travel
9.6
Fuel- and energy related activities
-
Purchased goods and services
-
Transportation and distribution (customer deliveries)
-
Sum
Emission intensity – tonne CO
2
Emission intensity – scope 1&2
0.02
Emission intensity – scope 3
8.65
Note: Calculation factors and assumptions will be improved in the coming years
1
The Greenhouse Gas (GHG) Protocol is a globally recognised standard for measuring and managing greenhouse gas emissions from
companies and their value chains, as well as emission reduction initiatives. It distinguishes between 3 scopes to which emissions can be
allocated. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased
electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a
company's value chain.
2
Annual report 2021
19
Total CO
2
2
. More than 99% of the emissions are
generated in Scope 3, of which 85% is related to products distributed to customers. As a reseller of
mobile devices and accessories, we do not manufacture any own products. Distribution is mainly
outsourced to logistics partners as a “dropshipping” solution, which is more efficient and more
environmentally friendly as the goods are shipped directly to the customer. Emissions related to
goods and services are expected to increase going forward as Techstep grows its business, which
will be partly offset by newer products with lower emissions. To reduce environmental impact, we will
actively help customers choose more energy efficient and eco-friendly products of what is available
on the market. We also work closely with our distributors to improve and optimise logistics solutions
such as packaging and emission-free distribution. Business travels for 2021 was largely impacted by
covid-19 during the year and may increase some with restrictions being removed.
The reduction in scope 1 emissions relates to a transition to electric vehicles. Total energy
consumption of 26.3 MWh in scope 2 emissions relates to our rented office premises and electric
company vehicles. Energy use related to data storage is not included for 2021, as we need to map
and assess this further in 2022. Techstep uses cloud-based data centres such as Microsoft 365 and
Azure Compute, which are much more energy efficient than traditional on-premises data centres. In
addition, data is stored on different software platforms managed on the providers’ hosting
infrastructure.
In 2022, we will further develop our climate accountancy and establish emission reduction targets.
Environmental management system and certifications
Techstep’s Norwegian operations is Eco-Lighthouse certified, while the Swedish operations are
certified by Swedish Environmental Base. Both are recognised environmental management systems
but limited to local markets. During 2022, Techstep will align its environmental management systems
in line with the new organisational structure and assess the ISO 14001 principle.
Annual report 2021
20
People and Society
At Techstep, we strongly believe that our success depends on a healthy, engaged, and competent
workforce. We strive to provide our employees with a professional, safe and trusted working
environment in which all individuals are respected and treated fairly, equally and with dignity. We
comply with all applicable employment legislation, including employee pay and working conditions
in the countries where we operate.
Organisation and people
People and culture are central for Techstep to grow and deliver long-term value. We want to attract
the best candidates to create future-proof products, deliver success for new and existing customers
and grow profitably. During 2021 we grew by 58 employees, mainly related to the acquisition of
Famoc. Turnover for the year was 12.6%, which is high but expected, as Techstep is undergoing a
transformation process.
To succeed with the ongoing transformation of Techstep into a software and value-adding service
company, we are streamlining the organisation and aligning the company around our products and
the customer journey. The executive management team has been strengthened with specialist roles
in R&D, marketing and sales, and the organisation reorganised into a matrix organisation with cross-
border teams.
Becoming One Techstep and aligning the organisation around the new corporate strategy continues
to be our focus going forward. In Q1 2022, we have introduced a new brand profile and corporate
values and will continue to revise and establish one set of common policies, procedures and ways of
working for the group.
Diversity, inclusion and equality
At Techstep we embrace diversity and equality, believing that different perspectives, experience and
backgrounds foster dynamics, creativity, and innovation. With a diverse workforce, we will be a better
partner to our customers. All employees shall be entitled to equal opportunities for equal work,
meaning the same rights, salary and career options in the same position, all other factors being
equal.
Operating in what historically has been a male-dominated industry, recruiting, retaining and
advancing women and diversity is a priority. In recruitment processes, emphasis is placed on
attracting highly qualified employees with diversity in both genders.
To track progress, Techstep is part of the SHE Index, which measures gender balance and progress
on initiatives among Norway’s largest companies. At the end of 2021, Techstep’s index score declined
from 63 to 61, somewhat below the industry average of 67. We have made progress in recent years,
but the result for 2021 was impacted by the acquisitions of Optidev and Famoc which had a lower
share of women. During the year, the share of women increased from 21% to 23%.
Short-term Techstep aims to reach 25% female representation at all levels, and over time a SHE
Index score of 80. At the time of disclosing this report, the executive management group comprises 9
Annual report 2021
21
0%
25%
50%
75%
100%
Group total
Executive management
Middle management
Part-time employees
Board of Directors
Women
Men
0%
20%
40%
60%
80%
100%
Board of
Directors
Executive
management
Group total
<30
30-50
>50
members with 3 women, corresponding to 33%. Techstep’s HR function is responsible for following up
equality and diversity in the group.
Gender distribution at 31.12.2021
Age distribution at 31.12.2021
Talent management and engagement
A rapidly changing and complex industry requires the ability to have the right competence.
Techstep’s long-term success is dependent on recruiting skilled IT professionals and support
functions and providing our employees an environment to develop and grow their talent.
Techstep’s HR strategy, which will be further developed in 2022, provides the foundation for
successfully building leadership and talent across the organisation to meet the company’s
objectives. Several initiatives will be implemented to ensure our new corporate values becomes part
of our company DNA.
In 2021, we developed a mandatory leadership training programme for all managers in the
organisation. This was launched early in 2022 and will run throughout the year. Focus for the year will
be on developing a structured framework for training and competence development, for our people
to grow and organisation to succeed. We will also launch a new onboarding programme for all
newcomers, to increase engagement and confidence from the start, and ease the transition into
their new roles.
We have introduced monthly check-ins and reviews for closer follow-up of all employees, as we
believe regular dialogue is key to building engaged and high performing teams. We have also
introduced an employee engagement survey tool to seek valuable feedback from all employees on
a weekly basis on topics such as personal development and team spirit, work situation and
Annual report 2021
22
leadership. The feedback will help us to actively take appropriate actions to continuously maintain a
highly engaged organisation. At the beginning of 2022, the organisation’s engagement score was 7.4
out of 10, which is on average with other organisations. Techstep targets an engagement score of 8.0
by the end of the year.
We believe that employees owning shares in our company promotes value creation through
increased engagement, commitment, and loyalty. A provision has therefore been made for
employees to buy shares at a discount through a share purchase employee programme. 13.5% of
the workforce participated in the share purchase programme in 2021.
Techstep is also actively engaged in promoting and developing new education for IT developers at
the University of Borås, Sweden, to attract students to the region and increase opportunities for
access to relevant talents. Collaboration with the university includes study visits and internships to
discover new talent and potentially future employees.
Compensation and benefits
Techstep seeks to offer competitive remuneration to all employees, reflecting their education,
experience and professional qualifications. Executive remuneration is guided by Techstep’s
remuneration policy, which is prepared by the board and adopted by the general meeting.
We use a global human capital management system for efficient and unified follow-up of all
employees. This also allows us to identify and close potential wage gaps that may be due to gender
or other diversity factors. A recent mapping of wage levels identified an average 15-18% gender
wage gap, primarily related to more men in managerial positions. Consultants are on average paid
more than support functions, and there are more men than women working as consultants, whereas
the gender distribution is more even on support functions.
Techstep offers additional payment for parental leave for both men and women, based on local
arrangements. On average, women took 16 weeks of parental leave in 2021 while men took 8 weeks.
Working environment, health and safety
Working with IT typically includes many hours in front of a computer. Techstep employees have the
right to a healthy and safe workplace, including a good workplace environment and ergonomics.
Techstep’s offices are located in modern facilities, and all employees are offered health services
through private health insurance arrangements.
Like everywhere else in the world, the Covid-19 pandemic continued to impact operations during
2021 with periodic home office requirements. The pandemic has accelerated Techstep’s focus on
flexible working arrangements to support a healthy work-life balance. Going forward, a hybrid
working solution will facilitate efficiency and collaboration, combined with employees’ personal
preferences in terms of their work arrangements.
Techstep targets a sickness absence rate of 3% or less. In 2021, the sick leave was 3.5% of the total
working hours (3.3% in 2020), which is considered a normal level within our industry. There were no
work-related illnesses or incidents reported during the year.
Annual report 2021
23
Digital literacy and skills in society
Mobile technology carries a huge potential to improve people’s work lives, and make companies
more productive, more profitable and more sustainable, all at the same time.
We believe employees have come to expect the same user experience at work as they enjoy in their
personal lives. This is often not possible as many organisations rely on legacy solutions to administer
devices or do not even provide employees with a mobile device. Techstep’s software solutions
preserve and extend the experience, allowing employees to use mobile devices at work as they do in
their personal lives, while at the same time retaining their privacy and fulfilling IT’s requirements for
deployment, access and security.
To win customers’ trust, we believe it is important to share knowledge and expertise about the
important digitalisation journeys companies must undertake. Through various events, we seek to
educate and inspire people on how to embrace mobile technology as a work tool and prepare for
the future of work. During the year we introduced Techstep Masterclass, a training platform to deep
dive into topics related to digitalisation and mobile technology. We successfully arranged our
annual Mobility Forum in Norway and Sweden, and held numerous webinars for new and existing
customers. Through Techstep, close to 2,500 people acquired new knowledge that will help them
and their organisations on their digitalisation journey.
Annual report 2021
24
Trusted business partner
Earning the trust of our customers, employees and other stakeholders is paramount to our
operations and a cornerstone of long-term success. We are committed to conducting business
ethically and with integrity, and aim to build trust through responsible, transparent and secure
business practices.
Cybersecurity and data privacy
Cyberattacks represent an increasing threat for all organisations. For Techstep these threats are
theft of information, modification of our customer data or services becoming unavailable. In
addition, mobile devices expose companies to increased risk as they are often used for both
personal and corporate purposes, and more subject to theft or loss. With the increased focus on
software solutions combined with security and privacy challenges, Techstep is strengthening its
focus on implementing security capabilities, based on identified risks. Information security is an
essential part of Techstep’s offerings to our customers and we are striving to be our own best case.
In 2021, Techstep commenced an information security management system (ISMS) project. The goal
is to further raise security awareness in the organisation, and ensure that appropriate technical,
organisational, and operational information security procedures and controls are in place. The ISMS
formally implements a systematic risk-based approach to information security based on the
internationally recognised standard ISO/IEC 27001. Additional best practices may be used in cases
where these objectives and controls are not sufficient to reduce risks to an acceptable level.
Techstep has also hired a Chief Information Security Officer (CISO) from Q2 2022, who will have the
overall responsibility for information security going forward.
We work in compliance with national laws of the countries in which we operate, as well as with the EU
General Data Protection Regulation (GDPR). In addition, principles from application software security
are applied to ensure Techstep designs secure products. Additionally, risk assessments are
performed on critical systems and processes. Based on the result, a system or process may receive
additional security controls if the risk is deemed unacceptable. One minor incident related to leak of
customer data were identified and reported in 2021. The incident was swiftly handled in compliance
with internal routines.
Techstep performs annual security awareness training for all employees, as well as during
onboarding of new co-workers. Examples of topics covered by this training include our security
policies and procedures, phishing, data leaks and reporting of incidents. 92% of the employees
completed the training in 2021.
Annual report 2021
25
Supply chain responsibility
A robust and resilient supply chain is crucial to maintaining business continuity. Techstep offers
mobile devices and accessories from leading international and global brands, where the
manufacturing mainly takes place in high-risk countries with respect to human and labour rights
and environmental impact. Third-party software is also part of our customer deliveries and in
support of our business organisation.
We are committed to conducting business activities in compliance with central UN and ILO principles
and conventions for human and labour rights, environmental concern and anti-corruption. However,
with a complex and fragmented supply chain, it is challenging to have full control of working
conditions, environmental pollution and business ethics. One of the key challenges for electronics is
related to the mining of conflict minerals, coupled with underpay and unhealthy working conditions
in the assembling and manufacturing process. Human rights and labour conditions within the
transport of goods are also a great challenge.
Nevertheless, we remain committed to promote responsible sourcing in our supply chain by
assessing suppliers for negative impact in their supply chain. Suppliers shall be selected and
monitored on relevant ESG criteria, aligned with Techstep’s overall goals and strategy. Over the last
years, we have reduced the number of suppliers which allows for closer collaboration and better
follow-up of the current suppliers.
We have identified our distribution partners and the Original Equipment Manufacturers (OEMs) as
the most important point in our supply chain where we should focus our traceability and due
diligence activities. Our largest OEM suppliers are members of the Responsible Business Alliance
(RBA), which commits them to support the rights and well-being of workers and communities
worldwide that are affected by the global electronics supply chain. It also ensures that they have
systematic audits and assessments, grievance mechanisms, corrective action processes and
documentation in place.
In the first quarter of 2022, we are revising our guidelines for ethical trade and develop a new
Supplier Code of Conduct (supplier code) in line with UN Guiding Principles on Business and Human
Rights. The supplier code will be rolled out to all suppliers during 2022, and requirements will be
incorporated into supplier agreements and pre-qualification processes going forward. We are also
revising our supplier due diligence procedures, to ensure compliance with OECD guidelines for
multinational enterprises. Our ambition is to work and collaborate systematically with our suppliers
and business partners, and that they share our commitment to conducting business in an ethical
manner. Suppliers should be able to document their compliance upon request, and we will assess
them according to their commitment in their own operations and supply chain.
Annual report 2021
26
Ethical business conduct
Techstep’s commitment to business ethics and compliance with international regulations and
internal policies is anchored in our code of conduct
Techstep’s code of conduct provides the framework for employee’s involvement in ensuring the
group operates in an ethical, sustainable and socially responsible manner. It specifies the main
principles that apply for everyone associated with Techstep and is intended to guide daily business
activities and to be integrated into critical processes, practices, activities and decision-making
across the group.
The code of conduct has been communicated to all employees and each employee is expected to
make a personal commitment to abide by the code of conduct. New employees are required to read
through it and make themselves familiar with the content. All employees must annually confirm that
the code of conduct has been read and understood. In addition, anti-corruption messaging is
communicated to employees.
Techstep takes a zero tolerance stand to any forms of corruption, money laundering and bribes as
they undermine any legitimate business. Internal policies and procedures will be developed to
ensure ethical and honest conduct. In 2022, we will revise our code of conduct and conduct training
with all employees on business ethics and anti-corruption and reporting of concerns during the year.
Whistleblowing function
Techstep’s code of conduct includes guidance on how to report any concerns related to illegal or
unethical conduct, including a third party operated channel for discrete and confidential handling of
any potential reports. Reported compliance concerns are handled and monitored by the
compliance function, which ensures that relevant procedures are in place and that the
whistleblowing mechanism complies with the requirements of the Norwegian Working Environment
Act. In 2021, Techstep did not receive any reported concerns.
Annual report 2021
27
Summary ESG results
2021
2020
2019
Environmental impact
Scope 1 - tonne CO2-eqv.
1.3
8.3
-
Scope 2 - tonne CO2-eqv.
25.1
9.4
-
Scope 3 - tonne CO2-eqv.
11282.1
9.6
-
Emission intensity - tonne CO2 per NOK million
8.7
-
-
Total units received for end-of-life handing
15 149
5 631
7 811
% re-sold to second-hand market
88%
-
-
Avoided emissions tonne CO2
1188.8
-
-
Employees and working environment
Total number of employees
341
289
211
Number of part-time employees
6
12
-
Turnover rate
12.6%
-
-
Employee engagement score (of 10)
7
-
-
Gender equality
Share of women - Board of Directors
40%
40%
44%
Share of women - Executive management
13%
0%
0%
Share of women - Middle management
29%
43%
44%
Share of women - Group total
23%
21%
24%
SHE index score
61
63
51
Average number of weeks for parental leave - men*
10
10
-
Average number of weeks for parental leave - women
27
27
-
Health and safety
Sick leave
3.5%
3.3%
3.6%
Occupational injuries
-
-
-
Trusted business partner
Percentage employees signing code of conduct
100%
100%
-
Reported incidents (whistleblowing)
-
1
-
Percentage employees taught cybersecurity
92%
-
-
# incidents - leaks of customer data
1
-
-
Management certifications
Quality base
(Sweden)
Environmental base
(Sweden)
Eco-lighthouse
(Norway)
ISO 9001 + 27001
(Poland)
* In Norway parents are entitled to 46 weeks of paid parental leave, of which each parent is entitled to 15 weeks with flexible leave
over the three first years after the birth. In Sweden, parents are entitled to 480 days (16 months) of paid leave, and each parent has
an exclusive right to 90 of those days (18 weeks) with flexible leave over the eight first years after the birth. In Poland , parents are
entitled to 40 weeks, of which 20 are reserved to the mother and 2 reserved to the father.
Annual report 2021
28
Corporate governance report
Techstep ASA’s principles for good corporate
governance establish the foundation for long-
term value creation to the benefit of all
stakeholders and society at large.
The principles should help inspire trust and
confidence in the company, render decision-
making more effective, and improve
communication between management, the
Board of Directors and the company’s
shareholders.
The principles cannot replace the ongoing work
to maintain a healthy corporate culture
throughout the company but should be
considered in this context. Trust and confidence
in Techstep are based on the existence of
respect, responsibility and equality, both
internally and externally.
Implementation and reporting on
corporate governance
Techstep is a Norwegian public limited
company listed on the Euronext Oslo Børs and
bases its corporate governance structure on
Norwegian legislation and recommended
guidelines.
The company observes the Norwegian Code of
Practice for Corporate Governance, issued by
the Norwegian Corporate Governance Board,
which was most recently revised on 14 October
2021, and referred to in this document as “the
Code of Practice.” The Code of Practice is
available on the website
www.nues.no
.
Application of the Code of Practice is based on
the “comply or explain” principle, which
stipulates that any deviations from the code
should be explained.
The principles and implementation of
corporate governance are subject to annual
reviews and discussions by the company’s
Board of Directors. This report discusses
Techstep’s main corporate governance policies
and practices and how Techstep has complied
with the Code of Practice in the preceding year.
By the company’s own assessment, Techstep
did not have any deviations from the Code of
Practice in 2021.
Business
Techstep is positioning to become the leading
European mobile technology enabler for
customers that want to work smarter and more
sustainably. The company’s operations comply
with the business objective set forth in its
articles of association, section 3:
“The company’s purpose is to engage in
business operations within information and
communication technology, and to develop
and provide solutions and software related to
the mobility, digitalisation and consultancy
business and everything that belongs thereto,
including owning shares and other securities in
other companies.”
The Board of Directors has defined clear goals
and strategies for the company’s business
activities to create value for its shareholders
and to ensure that its resources are utilised in
an efficient and responsible manner. This has
benefits for all its stakeholders. The board has
further adopted policies setting the standard
for ethical business conduct as well as
responsible business practices with respect to
people, environment and society. The
company’s objectives and strategy, which are
reviewed on an annual basis, are described in
the annual report for 2021, together with a report
on the company’s environmental, social and
governance measures.
Annual report 2021
29
Equity and dividends
As at 31 December 2021, Techstep’s total equity
was NOK 556 million and total liabilities
amounted to NOK 759 million, which
corresponds to an equity ratio of 42%, and a
debt-to-equity ratio of 137%. The group's
liquidity is closely monitored by management
and the board of directors, and the group has
access to multiple funding sources during the
transformation process should the need arise
going forward.
Techstep has not established a dividend policy
beyond a consensus that the company’s goal
and strategy are to increase shareholder value
and contribute to an attractive market for the
company's shares. Techstep has not paid
dividends to date and does not expect to pay a
dividend in the coming years. Techstep’s
intention is to retain future earnings to finance
operations and expansion of the business. Any
future decision to pay a dividend will depend on
the company's financial position, operating
profit and capital requirements.
Board mandates
Three authorisations were granted to the Board
of Directors at the annual general meeting on
22 April 2021. Following the acquisition of Famoc
S.A. and the appointment of a new CEO, it was
considered necessary to replace two
authorisations. As of the extraordinary meeting
on 22 September, the board has the following
authorisations:
•
Authorisation to increase the share capital
by up to NOK 35 million, by issuing up to 35
million shares with a par value of NOK 1 per
share. The authorisation covers both cash
and non-cash considerations, including
mergers. As at 31 December 2021, the
authorisation has not been used.
•
Authorisation to acquire treasury shares,
limited to 10% of the share capital as of 31
December 2020. As at 31 December 2021, the
authorisation has not been used.
•
Authorisation to increase the company's
share capital by up to NOK 16 million, by
issuing up to 16 million shares in Techstep,
with a par value of NOK 1 per share, in
connection with the company’s incentive
plan for its employees and directors. As at
31 December 2021, a total of 8,746,070
million share options have been granted to
key employees under the existing
authorisation.
All three authorisations are valid until
Techstep’s annual general meeting in 2022, and
no later than 30 June 2022. There was a
separate vote on each of the three
authorisations. For supplementary information
about the authorisations, reference is made to
the minutes of the general meetings held on 22
April and 22 September 2021. These are
available from
www.techstep.io
www.newsweb.no
.
Equal treatment of shareholders and
transactions with related parties
Techstep ASA has one class of shares. Treasury
shares will be traded on the stock exchange or
in accordance with guidelines from the Oslo
Børs.
According to the Norwegian Public Companies
Act, the company's shareholders have pre-
emption rights in share offerings against cash
contribution. Such pre-emption rights may be
set aside, either by the general meeting or by
the board based on an authorisation to the
board. In the event of a capital increase based
on authorisation from the general meeting,
where the pre-emption rights of shareholders
are set aside, the company will provide the
reasons for the practice in the stock exchange
notice in which the capital increase is
announced.
Annual report 2021
30
In 2021, Techstep issued consideration shares
as settlement for the acquisition of Famoc S.A.,
where the pre-emption rights of the
shareholders were set aside. The consideration
shares were issued under the then, at the time,
existing board authorisation to increase the
share capital. For details, see the stock
exchange releases dated 10 May and 1 July 2021,
respectively.
Any transactions in treasury shares, i.e., a share
buyback programme, will be carried out either
through Oslo Børs or otherwise at stock
exchange prevailing prices. If there is limited
liquidity in the company’s shares, the company
will consider other ways to ensure equal
treatment of all shareholders. There were no
transactions in treasury shares during 2021.
For significant transactions with closely related
parties, the company will use valuations and
statements from an independent third party if
the transaction is not to be considered by the
general meeting. There were no such
transactions in 2021. For further information,
refer to 23 - Related party transactions” in the
annual report for 2021.
Freely negotiable shares
The company’s shares are freely negotiable on
the Oslo Børs. There are no restrictions on
owning, trading or voting for shares in the
articles of association.
General meetings
The general meeting is the company's highest
decision-making body. The general meeting is
open to all shareholders, and Techstep
encourages shareholders to participate and
exercise their rights at the company's general
meetings. In order to vote, the shareholder must
be registered with the Norwegian Central
Securities Depository (VPS) at the time of the
general meeting.
Notices of general meetings shall be sent no
later than 21 days prior to the date of the
general meeting. According to the company’s
articles of association, there is no requirement
to send the documents up for consideration by
the general meeting directly to shareholders as
long as the documents have been made
available on the company’s website. The same
applies to documents that by law are required
to be included in or attached to the notice of the
general meeting. A shareholder may
nonetheless request that relevant documents
concerning business to be transacted at the
general meeting be sent to him or her. The
registration deadline will be set as close to the
meeting as possible, and all the necessary
registration information will be provided in the
notice.
Shareholders who are unable to attend may
vote by proxy. Whenever possible, the company
will prepare a proxy form that permits separate
votes for each item up for consideration by the
general meeting.
The Chairman of the Board normally chairs the
general meeting. In the event of disagreements
about individual items, where the Chairman
belongs to one of the factions or is for other
reasons not regarded as impartial, another
chairperson will be appointed to ensure
impartial treatment of the items up for
consideration at the meeting.
On 22 June 2021, Techstep held its annual
general meeting with 54.9% of the shares
represented. In addition, an extraordinary
general meeting was held on 22 September
with 34.25% of the shares represented.
Nomination committee
The nomination committee is governed by the
articles of association section 6. The general
meeting stipulates the guidelines for the duties
of the committee and determines the
Annual report 2021
31
committees’ remuneration. The current
instructions were approved at the annual
general meeting in 2018 and are available from
the company’s website.
The committee nominates candidates for the
board and the nomination committee, as well
as proposes the board’s remuneration. Grounds
for nominations by the nomination committee
are provided when nominees are presented to
the general meeting. All shareholders are
entitled to nominate candidates to the board,
and information on how to propose candidates
can be found on the company’s website
.
The current nomination committee was elected
at the extraordinary general meeting on 22
September 2021, and consists of two members,
Kyrre Høydalen (Chair) and Jonatan Raknes.
Both were elected for a term until the annual
general meeting in 2023. Høydalen and Raknes
represent two of the company’s largest
shareholders. Høydalen represents Datum AS,
the company’s largest shareholder, and is a
colleague of board member Harald Arnet.
Raknes, representing Middelborg Invest AS, is
considered independent of the board and the
executive management.
Board of Directors, composition and
independence
The Board of Directors shall consist of three to
seven members as regulated in the articles of
association section 5. The board and the
chairman are elected by the general meeting
for two years and may be re-elected. At the
annual general meeting on 22 April 2021, Einar
Greve and Torill Nag resigned from the board,
and Melissa Mulholland was elected as new
board member. Jens Rugseth, Ingrid Leisner
and Anders Brandt were re-elected, while
Harald Arnet was elected at the extraordinary
general meeting on 22 September.
The composition of the board is based on
representation of the company's shareholders,
as well as the company's need for competence,
experience, capacity and ability to form
balanced decisions. Information on each
director’s expertise, background and
capabilities can be found on the company's
website
www.techstep.io
.
All board members are regarded as
independent in relation to the company's
executive management and material business
contacts. Three of the five board members are
regarded as independent of the company's
main shareholders. Board members are
encouraged to hold shares in the company.
Annual report 2021
32
Name
Role
Independent
of main
shareholder
Attendance
board
meetings
Served
since
Term
expires
Shares in
Techstep
(direct/indirect)
at 31.12.2021
Jens Rugseth
Chair
No
9 of 10
11.02.2019
AGM
2023
21 804 349
Ingrid Leisner
Board member
Yes
10 of 10
22.02.2016
AGM
2023
601 562
Melissa
Mulholland
Board member
Yes*
10 of 10
22.04.2021
AGM
2023
0
Anders Brandt
Board member
Yes
10 of 10
26.04.2018
AGM
2023
1 802 801
Harald Arnet
Board member
No
3 of 3
22.09.2021
AGM
2023
0
Einar Greve
Board member
Yes
3 of 3
AGM
2021
n.a.
Torill Nag
Board member
Yes
3 of 3
AGM
2021
n.a.
* Melissa Mulholland is the CEO of Crayon ASA, where Jens Rugseth is a large shareholder and member of the
board
The work of the Board of Directors
The Board of Directors is responsible for
overseeing and supervising the company's
management and operations. The duties and
procedures of the Board is regulated by the
Norwegian Public Limited Liability Companies
Act. In addition, the board has adopted
supplementary rules of procedure which
provides further regulations on inter alia the
duties of the board, the chairman and the CEO,
as well as work, responsibilities, authorisations
and reporting.
The board is responsible for determining the
company’s overall goals and strategic
direction, principles, risk management, and
financial reporting. The board is also
responsible for ensuring that the company has
a competent management with a clear internal
distribution of responsibilities, as well as for
continuously evaluating the performance of the
CEO.
Techstep treats transactions with shareholders,
board members, employees and other related
parties with due care. To ensure that these
transactions and situations are handled in the
best possible manner, the board has set clear
guidelines for handling agreements in which a
board member, or a party related to a board
member, may have interests. There were no
such cases in 2021.
The Board of Directors meets as often as
necessary to fulfil its duties, and at least six
times each financial year. The Board of
Directors held 10 board meetings in 2021 with 98
% meeting attendance.
The board conducts a self-assessment of its
work periodically.
Board committees
The Board of Directors has established three
sub-committees to act as preparatory bodies
for the board. Members are elected by and
among the board.
Annual report 2021
33
The audit committee acts as a preparatory and
advisory body to the board with respect to
financial reporting and external audit, risk
management and internal control system,
corporate governance matters, and the
appointment mandate and remuneration of
the external auditor. As at 31 December 2021, the
audit committee consisted of board members
Ingrid Leisner and Melissa Mulholland*, both
considered as independent of the company.
The M&A committee assists the board with
tasks related to screening and evaluating
potential M&A candidates and approves
investment analysis and term sheets of
proposed deals. The M&A committee consists of
the board members Jens Rugseth and Harald
Arnet.
The remuneration committee assists the board
with tasks related to the company’s
remuneration of executive management. As at
31 December 2021, the remuneration committee
consisted of board members Jens Rugseth and
Ingrid Leisner.
Risk management and internal
control
The board is responsible for ensuring that
Techstep has good systems in place for risk
management and internal control. The systems
and procedures for risk management and
internal control shall ensure efficient
operations, timely and correct financial
reporting, and compliance with relevant laws
and regulations. The audit committee meets
annually with the auditor, to review the
company’s internal control routines, including
identified weaknesses and areas subject to
improvements. The board may engage external
expertise if necessary.
Techstep’s financial accounts are prepared in
accordance with IFRS, which aims to provide a
true and fair overview of the company’s assets,
financial obligations, financial position and
operating profit. The board receives monthly
management reports on developments and
results related to strategy, finance, KPIs,
projects, challenges and plans for upcoming
periods. In addition, quarterly reports are
prepared in accordance with the
recommendations of Oslo Børs, which are
reviewed by the audit committee prior approval
by the board of directors and subsequent
publication.
The board has adopted policies and
procedures for inside information and
disclosure of information, to ensure compliance
with applicable rules and regulations.
Techstep’s code of conduct and guidelines for
ethical trade describe the main principles for
ethical behaviour which apply to all employees
and suppliers. The code of conduct includes
guidance on how to report any concerns
related to illegal or unethical conduct, including
a third-party operated whistleblowing channel.
During 2021/2022, Techstep is strengthening its
governance, risk management and
compliance framework, including policy and
procedures for systematic risk management
and internal control.
A summary of the company’s main risks is
presented in the Board of Directors’ report and
note 20 Financial risk management in the
annual report for 2021.
Remuneration of the Board of
Directors
The remuneration of board members is
stipulated annually by the annual general
meeting based on the nomination committee’s
recommendation. The remuneration reflects
the Board of Directors’ responsibilities,
competence, time involved, and the complexity
of the business.
Annual report 2021
34
The remuneration of the board is not
performance based and the company does not
grant share options to any board members.
Members of the audit committee are
remunerated separately. The company does
not provide loans to board members. Detailed
information about the remuneration of the
board can be found in note 28 Remuneration to
the board and executive management to the
accounts in the annual report for 2021.
Remuneration of executive personnel
The main principle of Techstep’s executive
remuneration policy is that the remuneration
should be competitive and motivate to attract
and retain executives with the required
competence to strengthen and ensure the
business strategy, long-term interests, and
sustainability of Techstep. The executive
remuneration consists of a fixed salary and a
variable part linked to the company’s and the
individual’s achievement, and pension
schemes. Performance-related remuneration is
subject to an absolute limit of 50% of the fixed
salary, and assessed on both financial, non-
financial and operational criteria including
sustainability and equality. The corporate
objectives are set by the board and determined
for and agreed with the CEO. In 2021, the share
option programme for executive management
and certain other employees was extended.
The programme is linked to value creation to
the benefit of shareholders over time. Techstep
also has a share purchase programme where
employees may purchase shares at a discount
to the market price.
The executive remuneration guidelines have
been presented to, and were adopted by, the
extraordinary general meeting on 22
September 2021 (also see note 28
Remuneration to the board and executive
management in the annual report for 2021 as
well as the remuneration report to be presented
to the 2022 annual general meeting).
Information and communications
Techstep seeks to comply with Euronext Oslo
Børs’ Investor Relations (IR) recommendation,
last revised 1 March 2021.
The board has adopted an IR policy, which sets
the basic principles for the company’s
communication and dialogue with capital
markets participants, including roles and
responsibilities. The policy is passed on the
principles of equal treatment and
transparency, to ensure that stakeholders
receive factual, relevant, timely and
comprehensive information. The policy is
available on the company’s website.
The responsibility for IR lies with the CEO and the
chairman, supported by the IR team. The IR
team focuses on the day-to-day
communication and IR activities, while the
chairman focuses on the shareholders’
expectations related to the company’s
strategic direction and risk preparedness, as
well as issues that require resolution by the
general meeting.
Interim reports are provided on a quarterly
basis, in line with Oslo Børs’ recommendations.
In connection with the interim reporting,
presentations are given to the open public to
provide an overview of the operational and
financial developments, market outlook and the
company’s prospects. The presentations are
made available on the company’s website.
All information is primarily provided in English
and is distributed to the company’s
shareholders through Oslo Børs’
www.newsweb.no,
Takeovers
The company’s articles of association contain
no defence mechanisms against takeover bids,
Annual report 2021
35
nor have other measures been implemented to
specifically hinder the acquisition of shares in
the company.
In the event of a takeover process, the board
and the executive management shall ensure
that the company’s shareholders are treated
equally, and that the company’s activities are
not unnecessarily interrupted. The board has a
special responsibility to ensure that the
shareholders have sufficient information and
time to assess the offer.
In addition to complying with relevant
legislation and regulations, the board will
comply with the recommendations in the Code
if the situation so permits. The board has
established guiding principles for how it will act
in the event of a takeover bid. The main
principles include that the board shall not
hinder or obstruct any takeover bid, give
shareholders or others unreasonable
advantages, or protect their personal interests
at the expense of others, and that the board
shall protect the shareholders’ values and
interests.
If deemed necessary, the board shall also
ensure a valuation from an independent third-
party. On this basis, the board will make a
recommendation as to whether the
shareholders should accept the bid.
Auditor
BDO AS has been the Techstep’s auditor since
2009. The auditor is considered independent of
Techstep, and the board receives an annual
confirmation from the auditor that the
requirements regarding independence and
objectivity have been satisfied. The audit
committee performs an annual evaluation of
the auditor’s independence.
The auditor prepares an annual plan for the
implementation of the audit, which is made
known to the audit committee and the board.
The auditor participates in the board meeting
dealing with the annual accounts. Here the
auditor presents their views on accounting
matters and principles, risk areas and internal
control. The meeting includes an opportunity for
a review with the board, without the company’s
management present. The auditor participates
in board meetings on the request from the
board, as well as all audit committee meetings
held in connection with the financial reporting.
The Board of Directors has prepared separate
guidelines for using the auditor for services
other than the audit. All non-audit services
rendered by the group’s auditor are
preapproved by the audit committee, either
through the guidelines or on a case-by-case
basis.
Remuneration to the auditor is presented to and
approved by the annual general meeting,
including any fees for other specific
assignments if relevant (also see note 27
Remuneration to auditor in the annual report for
2021). The annual general meeting makes the
final decision to approve the auditor’s
remuneration. The auditor shall attend the
annual general meeting.
Annual report 2021
36
Executive Management
Børge Astrup – Chief Executive Officer
Børge Astrup is a business leader committed to creating a winning working environment, and a
culture that delivers by engaging and embracing diversity. Børge uses goal-oriented methodologies,
technology and commercial models, to drive fast, focused, and uncomplicated market delivery.
Mr Astrup has experience as the CEO of Puzzel, an international fast-growing cloud contact centre
software (CCaaS) company, as well as the managing director of Intelecom Group. He has also held
various management positions at Visma, the leading European provider of core business software.
Børge Astrup holds a bachelor’s degree in marketing with specialisation in management from BI
Norwegian Business School.
Anita Huun – CFO
Anita Huun is an experienced CFO, with a broad background from the IT industry and capital markets
in Norway, but also most recently from the Norwegian publishing industry. She has been active in
driving digital and people transformations over the last decade and thrives in driving the financial
agenda and impact in these situations.
Ms Huun comes from the position as CFO at Cappelen Damm, Norway’s largest publishing house.
Prior to this she held the CFO position at Microsoft Norway, where she worked during their early phase
of the huge transformation to become the leading cloud provider worldwide. Anita has also been a
sell-side equity analyst for Handelsbanken Capital Markets where she covered the Norwegian IT
sector, so she has a track record with the Norwegian financial markets and investor community. She
is also on the board of Nordic Semiconductor.
Ms Huun has a MSc from the Norwegian School of Economics (NHH), with specialisation in finance.
Sheena Lim – CMO
Sheena Lim has extensive international experience from marketing, branding and communication as
well as a technology focus from her background as a consultant in Telenor and McCann, working
with major global brands such as IKEA, Carlsberg and Unilever. Sheena’s background gives her
valuable experience from systems with high demands for collaboration across functions and
countries, as well as the ability to modernise methods, processes and tools.
Ms Lim comes from a position as Head of Marketing and Communication in Zalaris, a provider of
simplified HR and payroll administration. There, she worked with lead generation and re-branding of
the company.
Ms Lim has an executive MBA from BI Norwegian Business School and ESCP European Business
School, as well as a bachelor’s degree for business (marketing) from University of Monash.
Annual report 2021
37
Ellen Skaarnæs – Chief People Officer
Ellen Skaarnæs is an experienced, strategic and business-oriented HR leader with a keen focus on
delivering results and adding value to the business. She has a broad background from international
organisations at both the strategic and operational level. With her 13 years in Shell holding various
positions at all levels (from HR advisor to Managing Director) and 5 years at Coca-Cola Enterprises
as Ass. Director, HR Business Partner, she brings extensive experience from performance- and talent
management and change management in addition to solid leadership and coaching experience.
Ms Skaarnæs holds a bachelor’s degree in management from BI Norwegian Business School.
Gunnar Aasen – Chief Revenue Officer
Gunnar Aasen is a commercial leader with substantial C-level experience at driving international
B2B market penetration and commercial change, delivering growth from existing and new
customers via direct sales and channels. He has a proven track record within sales & marketing
management, enterprise software, telecommunications, and customer relationship management,
and experienced in managing diverse teams to exceed targets and delivering commercial change.
Mr Aasen comes from the position as CCO of Puzzel and member of the Executive Board, a fast-
growing cloud contact centre software (CCaaS) company. He has also held various management
positions at SuperOffice and Loxysoft with experience from management of sales & marketing and
customer relationship, enterprise software and telecommunications.
Bartosz Leoszewski – Chief Technology Officer
Bartosz Leoszewski is an experienced IT and software leader and entrepreneur. He is experienced in
building software products and their strategy, setting a long-term technology direction with
cybersecurity always at the forefront. As a software engineer in 2006 Mr. Leoszewski co-founded
Famoc, where he was first responsible for product development and engineering as Chief
Technology Officer, and in 2012 transitioned to a CEO role. Famoc was acquired by Techstep in 2021.
Mr Leoszewski holds an M. Sc. in Computer Science from the Technical University of Gdansk and an
Executive MBA from Rotterdam School of Management. He is also a member of the Polish chapter of
the Entrepreneurs' Organisation.
Fredrik Logenius – Chief Commercial Officer
Fredrik Logenius is a first-mover, entrepreneur and an experienced executive within the information
technology and services industry. His skill set is broad and based on entrepreneurship and strategy,
agile methodologies, software development and mobile solutions.
Mr Logenius has since 2015 been Managing Director of the Swedish company Optidev AB, which
Techstep ASA acquired in 2020. Thanks to business achievements with Optidev AB, he was awarded
Entrepreneur of the Year 2020 in his hometown Borås where Optidev AB has its head office. Mr
Logenius has also been nominated for the EY Entrepreneur of the Year award, a programme which
spans more than 60 countries around the world.
Annual report 2021
38
Erik Haugen – Chief Transformation Officer
Erik Haugen is an international business professional, bringing with him broad commercial
experience in finance, telecommunications, consumer electronics, the entertainment licencing
industry, and IT. Following his business administration studies at BI Norwegian Business School, Mr
Haugen spent 12 years in London, working with sales, marketing and business management for
companies like Pioneer and Sony Ericsson, before moving into international movie and music
licensing, joining The Licensing Agency Ltd. in 2005.
Since returning to Norway in 2009, Mr Haugen first joined Norwegian Air Shuttle ASA to implement
their mobile communications initiative. He subsequently moved into finance and professional
service sales with Lindorff AS (now Intrum) in 2011, where he was responsible for strategic sales, key
account management and business development for a large portfolio of clients within telecoms,
utilities, trade, SME and the public sector.
Mads Vårdal – Chief Product Officer
Mads Vårdal is an experienced business developer and executive with a proven track record from
previous positions at Nordialog, Smartworks and Teki Solutions. His long experience from the industry
covers sales, strategy, business development, M&A processes, product development and executive
manager roles.
Mr Vårdal has since 2007 been operating in several central executive roles within sales, business
development and daily management with a build and turnaround focus.
Annual report 2021
39
Board of Directors
Jens Rugseth – Chairman of the board
Mr Rugseth has served on the board of Techstep since February 2019. Mr. Rugseth is a co-founder
and member of the Board of Crayon Group Holding ASA and chairman of the board in Link Mobility
Group Holding ASA. He has been a serial founder of several companies within the IT sector over the
past 30 years. Mr. Rugseth has also held the position of Chief Executive Officer with some of the
largest IT companies in Norway, including ARK ASA, Cinet AS and Skrivervik Data AS. Mr. Rugseth
studied business economics at the Norwegian School of Management.
Ingrid E. Leisner - Board member
Ms Leisner has served on the board of Techstep since January 2016. Ms. Leisner’s directorships
include current board positions for Self Storage Group ASA, Norwegian Air Shuttle ASA, Maritime and
Merchant ASA, Xplora Technologies AS and Elliptic Labs ASA. Ms. Leisner has a background as a
trader of various oil and gas products in her 15 years with Statoil ASA. Her years of experience of, and
expertise in, business strategy, M&A, management consulting and change management have been
very valuable when serving on the boards of several companies listed on Oslo Stock Exchange. She
holds a Bachelor of Business degree with honours from the University of Texas in Austin.
Anders Brandt - Board member
Mr Brandt has served on the board of Techstep since April 2018. Mr. Brandt has more than 20 years of
experience in international entrepreneurship, technology, venture capital and digital services. He is
managing partner in the venture capital fund Idekapital, and has co-founded and exited numerous
companies, including DinSide, OMG, Viken Fibernett, Mytos, Meshtech and Bubbly Group. Brandt has
14 years of board experience for listed companies on Oslo Stock Exchange and Nasdaq Stockholm,
including several tech companies.
Melissa Mulholland - Board member
Ms Mulholland has served on the board in Techstep since April 2021. Ms. Mulholland is Chief Executive
Officer of Crayon, a digital transformation expert. Prior to Crayon, Melissa spent 12 years at Microsoft,
leading strategy and business development to help businesses be profitable through cloud
transformation. Prior to Microsoft, she spent two years at Intel Corporation, driving a cross-company
analysis into the effectiveness of using recycled chips for solar technology, to reduce fixed costs. She
has authored 12 books focused on how to build a business in the Cloud and is a board advisor for
SHE, Europe’s largest gender equality conference. Ms. Mulholland holds an MA in Business
Administration and Strategic Management from Regis University in Colorado. She is a US national.
Harald Arnet - Board member
Mr Arnet has served on the board in Techstep since September 2021. Mr. Arnet has more than 30
years of experience in national and international finance, industrial and financial investments. He is
the CEO of Datum AS, one of the company’s larger shareholders, and has held several board
positions in listed and non-listed companies, including Kahoot! AS, NRC Group ASA and several
Annual report 2021
40
companies within the Datum group. He holds a master's degree from University of Denver and
London Business School.
Annual report 2021
41
Board of Directors’ Report
Techstep is on a transformation journey of
becoming the leading European mobile
technology enabler for customers that want to
work smarter and more sustainably. Techstep’s
growth and acquisition strategy, as well as own
IP, software and mobility expertise has created
a strong fundament for further transformation.
Techstep will continue to transform its business
model from transactional sales to having full
focus on selling its product offering as a
recurring revenue bundle powered by mobile
technologies.
Business activities and strategy
People expect easy access to tools and services
across devices, both at home and at work.
Techstep enables employees to use mobile
devices as true work tools through a product
offering that seeks to improve productivity,
engagement and sustainability.
Techstep has extensive experience as a mobile
solutions provider, now serving more than 2,000
enterprise customers across industries in the
Nordics and Europe. Since late 2016, Techstep
has focused on consolidating the Norwegian
and Swedish market. In 2021, the company
made its 11th acquisition, when acquiring
Famoc in Poland. With this, Techstep is
positioning itself to take leadership in an
attractive and emerging mobility market in
Europe.
Covid-19 impact on Techstep
Techstep has been well equipped to deal with
the Covid-19 pandemic and ensure business
continuity and efficient operations. Techstep
has followed national guidelines and restricts
physical meetings and all unnecessary travel
when advised.
The majority of Techstep’s customers are
operating as normal, but some have longer
lead times on sales and implementation
processes. This is expected to revert to normal
with the completion of the vaccination
programmes and lifting of all Covid related
restrictions. On the supply side, Techstep has
experienced some hardware supply shortages
due to Covid. The hardware backlog was,
however, to a large extent reduced in the last
quarter of 2021. See note 20 of this report for a
more detailed review of financial risk factors.
Main developments in 2021
In 2021, Techstep has focused on pursuing its
software-led growth strategy, the
transformation to a recurring business model
and becoming a complete mobile technology
enabler. Techstep continued to improve and
refine its product offering, designed as a
recurring services bundle that integrates own IP,
software, and mobility expertise to fulfil the
needs of the customer and its end users.
In the second half of 2021, Techstep focused on
evolving its product offering to the new smart
product portfolio consisting of SmartControl,
SmartWorks and SmartDevice. The new
portfolio launched March 2022. The purpose is
to better clarify Techstep’s value proposition.
The group has also been transformed from a
country-led organisation into a matrix
organisation. The reorganisation is a step on the
way to align the software-led growth strategy
with execution power across all markets, with
the additional benefit of standardization. To
support the matrix organisation new roles in the
management team has been introduced. The
new roles include Chief Transformation Officer,
Chief Marketing Officer, Chief Revenue Officer,
Annual report 2021
42
Chief Technology Officer and Chief People
Officer.
Techstep has spent substantial resources to
build processes for the future, supported by
internal IT applications and integrations, as well
as own software. This builds a platform for
future growth.
The new product portfolio, matrix organisation
and investment in processes and tools enable
Techstep to deliver on the growth and M&A
strategy. The developments will help to
consolidate new M&A targets into existing
operations more efficiently, making it possible
to strengthen Techstep’s position in the Nordics
and to expand further in Europe.
The acquisition of Famoc was an important
development for the company. The acquisition
gave Techstep access to a complementary
product portfolio, human capital within mobility
and R&D, security expertise and strong entry
into the European market.
The company has developed a clear go-to-
market strategy and increased education
about its product offering, both externally and
internally. “Techstep Masterclass” is one
initiative that seeks to educate the customers
and the market about mobile technology and
Techstep’s product offering. Further, the
company has strengthened its development
department to improve its own product offering
and reduce the dependence on 3rd party
software. Of 341 employees, 48 were working on
R&D at the end of the year, of which 30
employees in Poland and 18 in Norway and
Sweden.
Techstep expects that the effect of the
initiatives taken will materialise in both
increased sales and a higher recurring revenue
share over the medium term.
Mobile technology for a smarter world of work
Techstep is continuously developing its offering
to become a leader in the mobile technology
market. Over the last years the service stack has
been expanded with new value-adding
services and software, which has been grouped
together to match customer demand. The
development resulted in the three product
categories SmartControl, SmartWorks and
SmartDevice.
Strategic initiatives to become a leading
mobile technology enabler in Europe
Techstep has over the past five years acted as
a market consolidator in Norway and Sweden,
and continuously evaluates potential M&A
opportunities. In line with its strategy, Techstep
made strategic initiatives to strengthen its core
product offering and geographical position in
2021.
Techstep announced the acquisition of
software provider Famoc, strengthening
Techstep’s managed mobility capabilities and
unlocking a European expansion opportunity.
Techstep successfully raised NOK 100 million in
gross proceeds on 20 May to fund the
acquisition, closing it on 1 July. The transaction
was settled partly in consideration shares in
Techstep ASA, cash and seller’s credit,
corresponding to a total of NOK 110.2 million. See
note 22 for more information.
In November 2021, Techstep divested its non-
core business units, the Voice & Contact Centre
in Norway, and Sweden for a consideration of
NOK 65.7 million, closed in the beginning of 2022.
This enables Techstep to increase its focus on
its core product offering as well as transition to
a recurring revenue business model. See note
22 for more information.
Sales activity
Annual report 2021
43
Techstep experienced sales improvements
towards the end of the year with several large
customer wins, secured through demand for
own software. The company signed 33 MMS
contracts with a total estimated value of NOK
175 million and ~28,000 managed devices. DNB
was the largest contract in terms of users and
contributed with 9,000 users.
Among the largest contracts signed in 2021
were DNB, Posten Norge, Stockholm Läns
Landsting, Pågen Färskbröd, Kiwi, and
Kjøpmannshuset Norge. The new MMS-
contracts represent upselling to long-term
clients as well as some new customer wins.
Techstep expects the new product categories
to increase customer wins and sales
momentum, which again will drive value for
Techstep’s shareholders.
Recurring revenue base
Techstep’s annual recurring revenue base on
own software IP (ARR
3
) was NOK 97.5 million,
whereof MMS-related ARR was 69.6 million at
the end of 2021. ARR at the end of 2020 was
NOK 63.3 million. Compared with 2020, this
represents a 54% annual growth including the
acquisition of Famoc. Organic growth in MMS-
related ARR was 8% in 2021. Techstep’s ARR had
a gross margin of ~87% – sold either as a
white-label service through partners or directly
by Techstep. The total annualised recurring
revenue portfolio was NOK 266 million in 2021.
The annualised recurring revenue portfolio
includes recurring revenue streams from Own
Software, Advisory & Services and Hardware-
as-a-Service.
Financial review
Profit and loss
Full-year revenue amounted to NOK 1 305
million for 2021, compared to NOK 1 143 million in
2020. In 2021, Own Software accounted for NOK
74 million (NOK 43 million), whereas Hardware-
as-a-Service revenue accounted for NOK 134
million (NOK 105 million). Advisory & Services
amounted to NOK 254 million (NOK 201 million)
and related commissions were NOK 20 million
(NOK 31). Hardware sales (including bonus from
vendors) remain the largest revenue generator
with NOK 821 million (NOK 758 million).
The acquisition of Famoc contributed with NOK
14.6 million in revenue in 2021, consolidated from
the third quarter.
Gross profit was NOK 460 million for the full year
2021 (NOK 378 million). This mainly relates to an
increase in the Hardware-as-a-Service
portfolio, the full year effect of the Optidev
acquisition and the inclusion of the Famoc
acquisitions from the third quarter 2021.
Own Software accounted for 5.7 % (3.8 %),
advisory, services and third-party software
accounted for 19.5 % (17.6 %) and operating
commission for 1.5 % (2.7 %) of gross profit. The
remaining relates to hardware-as-a-service
10.3 % (9.2 %), Hardware for 62.9 % (66.3 %) and
Other 0.1 % (0.3 %).
The gross margin increased to 35.2 % for 2021,
up from 33.1 % in 2020.
Total net operating expenses in 2021 were NOK
1 416 million, compared with NOK 1 171 million in
2020. Salaries and personnel costs increased by
35% to NOK 282 million, mainly related to the full
year effect of the 2020 acquisitions. Option
costs were NOK 5 million (NOK 2 million). Other
operational costs were NOK 109 million (NOK 74
million).
EBITDA adjusted for 2021 was NOK 70 million
EBITDA (NOK 96 million).
3
Refer to alternative performance measures
Annual report 2021
44
Depreciation increased by NOK 21 million from
2020 to 2021 due to increase in the hardware-
as-a-service portfolio. Amortisation increased
by NOK 27 million from 2020 to 2021 mainly due
to the full-year effect of amortisation of
customer relations from the Optidev
acquisition.
The ordinary operating loss (EBIT) amounted to
NOK 111 million for 2021, compared to an
operating loss of NOK 11 million in 2020.
The net financial result amounted to negative
NOK 8 million in 2021, compared to negative NOK
6 million in 2020.
The net loss for 2021 was NOK 103 million,
compared to a net loss of NOK 24 million in 2020.
Financial position
In 2021, Techstep issued 26,334,343 new shares
in connection with the employee share
purchase programme, private placement and
the acquisition of Famoc.
As at 31 December 2021, total assets were NOK
1 315 million, compared with NOK 1 199 million as
at 31 December 2020.
Intangible assets account for NOK 776 million
(NOK 733 million). Intangible assets include
goodwill of NOK 593 million and customer
relations and technology of NOK 183 million.
Total tangible assets were NOK 179 million (NOK
174 million) as at 31 December 2021 including
NOK 143 million (NOK 125 million) in hardware
leased out to customers and NOK 30 million (40
million) in leased assets.
Total inventories and receivables were NOK 281
million as at 31 December 2021.
Total equity at the end of 2021 was NOK 556
million (NOK 563 million), corresponding to an
equity ratio of 42% (47%).
Non-current interest-bearing debt of NOK 97
million (NOK 109 million) includes an acquisition
loan of NOK 61 million and seller’s credits of NOK
30 million. Other non-current debt of NOK 43
million (NOK 55 million) primarily relates to
leasing commitments of NOK 22 million and a
buy-back obligation for leased hardware of
NOK 20 million.
Current interest-bearing liabilities amounted to
NOK 75 million (NOK 86 million) in 2021. This
includes net bank overdraft accounts of NOK 22
million, as well as a short-term seller’s credit of
NOK 28 million and a short-term part of the
acquisition loan of NOK 25 million related to
acquisitions.
Other current liabilities of NOK 295 million (NOK
166 million) as at 31 December 2021 mainly
include payables to employees of NOK 37
million, deferred revenue of NOK 201 million,
leasing commitments of NOK 11 million and a
buy-back obligation for leased hardware of
NOK 10 million.
Net interest-bearing debt was NOK 122 million at
the end of 2021, compared to NOK 167 million at
the end of the preceding year.
Cash flow
The net cash flow generated from operating
activities was NOK 129 million in 2021, compared
with NOK 77 million in 2020. In 2021, Techstep had
improved cash generation from own
operations.
A n
egative change in net working
capital from the Optidev acquisition was the
main operating cash outflow in 2020.
Net cash flow used for investment activities was
a negative NOK 175 million. This is largely due to
acquisition expenditure of NOK 79 million net of
cash acquired, as well as capital expenditures
related to leased out hardware of NOK 141
million. Techstep also invested NOK 49 million in
own software and IT development and gained
NOK 93 million in proceeds from sale of
Annual report 2021
45
equipment and the Voice & Contact Centre
business unit in the year. The net cash flow used
for investment activities in 2020 was NOK 171
million, mainly related to acquisitions, software
and IP development investments and payment
for hardware leased out through Techstep
Finance.
Net cash flow from financing activities was NOK
71 million in 2021. This includes proceeds from
borrowings of NOK 35 million, lease repayments
of NOK 16 million and repayment of bank loans
of NOK 42 million. The net cash flow from
financing activities in 2020 was negative at NOK
31 million, relating to repayment of borrowings
and lease obligations.
Cash and cash equivalents increased by NOK
26 million during 2021, to NOK 50 million at the
end of the year.
Allocation of the profit/loss for the parent
company, Techstep ASA
Loss for the year 2021 attributable to owners of
the parent was NOK 103 million, compared to a
loss of NOK 25 million for 2020. The Board has
proposed that the loss be covered by other
reserves.
Going concern
Based on the aforementioned comments about
Techstep ASA’s accounts, the Board of Directors
confirms that the annual financial statements
for 2021 have been prepared on the basis of a
going concern assumption, and that this
assumption has been made in accordance
with Section 3-3a of the Norwegian Accounting
Act.
Financial risk and risk management
Techstep’s risk management aims to support
effective execution and decision making to
reach the company’s goals and ensure
compliance with legal and regulatory
requirements.
Operational risk
In the short and medium term, Techstep will
focus on improving its product offering,
reducing customer implementation time and
becoming a software-led growth business,
yielding higher cash flow and profit from
operations and transforming into a recurring
revenue business model.
Techstep’s operations, revenues and profits are
dependent on its ability to generate sales
through existing and new customers. Techstep
operates in a competitive market segment, and
the group’s success depends on its ability to
meet changing customer preferences, to
anticipate and respond to market and
technological changes, and develop effective
and competitive relationships with its
customers and partners. In the past year
Techstep has experienced supply chain
disruptions due to global component shortage
and Covid-19, resulting in longer delivery times
and some increased backlog. Techstep saw
however improvements in Q4. The component
shortage remains a risk, and Techstep has a
running dialogue with key manufacturers to
ensure required supply of hardware. In addition,
the transformation into a software-led
company is expected to mitigate the
dependency of transactional sales.
Techstep believes that being an early mover in
the Nordic and European mobility market
provides a solid fundament to retain and
strengthen its market position going forward.
The operational risk mainly relates to
successfully standardising and scaling the
product portfolio. Operational risks are
continuously reviewed by the corporate
management.
Financial risk
Techstep’s activities involve various types of
financial risk: credit risk, liquidity risk, currency
Annual report 2021
46
risk and interest rate risk. The primary focus of
the group’s capital structure is to ensure
sufficient free liquidity, so that the group can
service its obligations on an ongoing basis, and
at the same time be able to make strategic
acquisitions.
The credit risk relates to customers being
unable to settle their obligations as they
mature. Techstep has a well-diversified
customer portfolio, mainly comprising
medium-sized and enterprise companies in the
private and public sectors. The group has
established mitigating procedures including
credit rating of major private customers, and
the credit risk is considered satisfactory.
Techstep’s liquidity risk is related to a mismatch
between cash flows from operations and
financial commitments. Techstep is
transforming from a transactional model to a
software-led recurring revenue model, which
by definition postpones incoming cash flows,
putting a higher strain on the liquidity position
of the group. The group's liquidity is closely
monitored by management and the board of
directors. If the need arises, the group has
access to multiple funding sources during the
transformation process.
Historically, the group’s liquidity has been
satisfactory. The consolidated cash flows from
operations were positive in 2021, and net
change in cash and cash equivalents was
positive. The net change in cash and cash
equivalent improved in 2021 mostly related to
the divestment of the Voice & Contact Centre
business unit. Techstep's liquidity is dependent
on the company's ability to execute on the
strategy to transform its business model driving
improved cash conversion.
Techstep experiences fluctuations in currencies
and interest rates. As the group’s operations are
conducted in Norway, Sweden, and Poland,
Techstep is affected by currency fluctuations of
NOK, SEK, PLN and EUR. There is limited trade
between Norway, Sweden, and Poland, and the
currency risk is generally considered to be low.
Group values related to foreign operations are
subject to currency fluctuations. As such, there
may be variations in the “exchange differences
on translating foreign operations” in the
consolidated statement of comprehensive
income. Interest rate changes have only a
marginal direct effect on consolidated
operating income and cash flows from
operating activities. Techstep’s interest rate risk
is related to floating interest rates on bank
accounts and deposits, in addition to floating
rate debt in borrowings from credit institutions.
Techstep does not use any hedging
instruments for currency or interest rate
fluctuations.
Macroeconomic and geo-political risk
Techstep monitors and evaluates risks related
to the current macroeconomic development
including the effects from the Covid-19
pandemic.
The Covid-19 pandemic has since the outbreak
in March 2020 resulted in somewhat longer
lead times on sales and implementation
processes. At the time of publication of this
annual report, the situation seems to be
reverting to normal with the completion of
vaccination programmes and lifting of Covid-
related restrictions. In case of an escalation of
the pandemic again, Techstep is able to
operate via decentralised and remote
locations with focus on maintaining its client
services in a best possible and efficient
manner.
In February 2022, Russia invaded Ukraine. Since
then, military actions have continued in
Ukraine with a significant negative impact on
people and the local communities, as well as
consequences for the global political and
economic environment. The invasion is widely
Annual report 2021
47
condemned in the international community
and sanctions have been imposed on the
Russian state, businesses and certain
nationals. The war is causing business
disruptions, impacting the global economy
and commodity prices, and leading to
significant short-term volatility in the European
and international capital markets. The war and
subsequent sanctions might damage
European infrastructure and limit trade.
However, there is uncertainty regarding the
extent and duration of military conflict and
how it will affect the global economy, as well
as the company’s performance over time.
Techstep monitors the consequences of the
Russian invasion and subsequent sanctions.
Techstep has no activities in or exposure to
Russia, Belarus, or Ukraine. Indirect
consequences may occur in case suppliers are
affected, in which the potential escalation of
component shortages represent the largest
uncertainty.
Transactions with related parties
Fredrik Logenius, a member of Techstep’s
executive management team also owns 50% of
Stobor Invest AB. Trades between Techstep and
all related parties are disclosed in note 23.
There were no other material transactions with
related parties during 2021.
Corporate governance
Techstep ’s corporate governance structure is
based on Norwegian legislation and the
Norwegian Corporate Governance Board
(NUES/NCGB), last revised 14 October 2021. A
statement on Techstep’s corporate
governance principles and practices is
provided in a separate section of this annual
report. In the company’s own assessment,
Techstep did not deviate from any sections of
the Code of Practice as at year end 2021.
Corporate social responsibility
Techstep aims to be a responsible company
which respects people, society, and the
environment. The company plays a central role
in workplace digitalisation, and its primary
corporate responsibility is to help ensure that
modern enterprises can digitalise their
operations in a safe and efficient manner.
Techstep’s environmental, social and
governance (ESG) policy, commits the
company to responsible business practices in
the areas of human rights, labour, equality,
anti-corruption and the environment. Further
details on Techstep’s ESG activities are included
in a separate sustainability chapter of this
annual report.
Shareholder information
As at 31 December 2021, Techstep had
209 629 830 shares outstanding, an increase
from 183 295 472 shares one year earlier. The
company had 3 475 shareholders. At the end of
2021, Techstep held 1 914 treasury shares. The
shares have a par value of NOK 1.0.
The company’s largest shareholder, Datum AS,
held 17.5% of the shares at year end, with the 20
largest shareholders holding 71.7% of the shares
outstanding.
During 2021, Techstep’s share price fluctuated
between NOK 3.54 and NOK 5.65 per share. The
final price at the close of the year was NOK 3.65
per share, down from 5.15 per share in the
previous year.
For detailed shareholder information, see note
25 in the consolidated financial statements for
2021.
Outlook
Techstep has positioned itself to be the leading
European mobile technology enabler for
customers that want to work smarter and more
Annual report 2021
48
sustainably. The company’s vision is to make
the world of work smarter and more
sustainable.
Through its software-led growth strategy,
Techstep is serving more than 2 000 customers
across industries in both the private and public
sector. Going forward, Techstep will continue to
transform into a software and value-adding
services company targeting strong growth and
geographic expansion in the Nordics and in
Europe.
As part of its transformation journey, Techstep
invests in Own Software and IP and pursues
M&A opportunities to further strengthen and
expand its Managed Mobility Services (MMS)
offering and market position.
In parallel, Techstep is transforming the
business model from a transactional to
recurring revenue model by redesigning and
streamlining its product offering. The company
will offer a software-led standardised and
scalable product portfolio to attract, develop,
and retain customers. The new product offering
consists of SmartControl, SmartWorks and
SmartDevice, and will launch late in the first
quarter of 2022. The new offering is designed to
strengthen the value proposition to customers
and drive recurring revenues.
Techstep has stated medium-term goals. The
ambition is a gross profit growth of 20-25% and
a gross profit to EBITDA conversion of 20-25%. In
2021, Techstep entered into 33 MMS contracts
with gross profit growth of 21% and a gross profit
to EBITDA conversion of 15%. Annual
development capex is expected to be NOK 35-
40 million, with acquired software bringing it
further up. The transformation to a recurring
revenue model is expected to support sales
growth and profitability. Techstep is targeting to
manage 1 million devices by 2025, with a gross
profit to EBITDA conversion above 30%.
According to the Global Managed Mobility
Service Market (2022-2027) report from Mordor
Intelligence the growth of the European
managed mobility service market was 21% in
2021. The global market is expected to grow
annually 24% from 2022 to 2027.
Important focus areas going forward are data
privacy, security and sustainability with careful
life-cycle handling of devices.
Techstep also recognises the expectations for
cloud migration from on-premises software is
increasing as well. This fits perfectly with the
product offering of SmartControl, SmartWorks
and SmartDevice.
Growth will come from converting existing
customers to MMS, onboarding new customers,
M&A to acquire new software, IP and market
positions and from geographical expansion. To
unleash growth, Techstep will increase focus on
the customer, the products it brings to market,
and the technology and software that power its
solutions. Techstep is confident that its MMS
offering has a strong value proposition and
increasing relevance as it helps enterprises
reduce costs, increase productivity, transform
employee capabilities, and enhance their
engagement, ultimately driving business value
and revenue growth, while delivering on ESG
goals.
Techstep’s long-term ambition is to serve
thousands of enterprise customers and
millions of end users across the Nordics and
Europe. Driven by value creating services and
economies of scale, the company continues to
grow and significantly improve its gross
margin and profitability over the long-term.
Annual report 2021
49
Responsibility statement
Oslo, 22 March 2021
From the Board of Directors and CEO of Techstep ASA
We confirm, to the best of our knowledge, that the financial statements for the period 1 January to 31
December 2021, the comparative figures presented for the period 1 January to 31 December 2020
have been prepared in accordance with current applicable accounting standards, and give a true
and fair view of the assets, liabilities, financial position and profit or loss of the entity and the Group
taken as a whole. We also confirm that the Board of Directors’ Report includes a true and fair review
of the development and performance of the business and the position of the entity and the Group,
together with a description of the principal risks and uncertainties facing the entity and the Group.
Jens Rugseth
Chairman
Harald Arnet
Board member
Ingrid Leisner
Board member
Anders Brandt
Board member
Melissa Ann Mulholland
Board member
Børge Astrup
CEO
Annual report 2021
50
Consolidated income statement
(Amounts in NOK 1000)
Notes
2021
2020
Revenue
Other revenue
Total revenue
Cost of goods sold
2
(845 305 )
(764 579 )
Salaries and personnel costs
(281 620 )
(208 243 )
Other operational costs
(108 549 )
(74 405 )
Depreciation
(108 229 )
(87 332 )
Amortisation
11
(54 723 )
(27 892 )
Other income
7
Other expenses
7
(17 209 )
(9 028 )
Operating profit (loss)
(110 522 )
(10 770 )
Financial income
8
Financial expense
8
(20 460 )
(11 822 )
Profit before tax
(118 750 )
(16 833 )
Income tax
9
(6 725 )
Net income
(102 660 )
(23 558 )
Net income attributable to
Non-controlling interests
22
Shareholders of Techstep ASA
(103 050 )
(24 746 )
Earnings per share in NOK:
Basic
24
(0.55 )
(0.15 )
Diluted
24
(0.55 )
(0.15 )
Annual report 2021
51
Consolidated statement of comprehensive income
(Amounts in NOK 1000)
2021
2020
Net income
(102 660 )
(23 558 )
Items that may be reclassified to profit and loss
Exchange differences on translation of foreign operations
(21 586 )
Income tax related to these items
(1 304 )
(730 )
Other comprehensive income
(22 890 )
Total comprehensive income for the period
(125 549 )
(1 941 )
Total comprehensive income for the period attributable to
Non-controlling interests
Shareholders of Techstep ASA
(125 939 )
(3 130 )
Annual report 2021
52
Consolidated statement of financial position
(Amounts in NOK 1000)
ASSETS
Note
2021
2020
Non-current assets
Deferred tax asset
Goodwill
Customer relations and technology
Sum intangible assets
Right of use assets
Property, plant and equipment
10
Sum tangible assets
Shares and investments
20
Other non-current assets
20
Sum financial assets
Total non-current assets
Inventories
12
Accounts receivable
Other receivables
Total inventories and receivables
Cash and cash equivalents
14
Assets classified as held for sale
10, 22
Total current assets
Total assets
EQUITY AND LIABILITIES
Note
2021
2020
Share capital
25
Other equity
Total equity attributable to the owners of Techstep ASA
Non-controlling interests
22
Total equity
Deferred tax
9
Non-current interest-bearing borrowings
Other non-current debt
9, 16, 20, 22
Total non-current liabilities
Current interest-bearing borrowings
Accounts payable
Tax payable
-750
Public duties
Other current liabilities
9, 15, 17, 20
Total current liabilities
Total liabilities
Total equity and liabilities
Annual report 2021
53
Oslo, 22 March 2022, signatures from the Board of Directors and the CEO of Techstep ASA:
Jens Rugseth
Chairman
Harald Arnet
Board member
Ingrid Leisner
Board member
Anders Brandt
Board member
Melissa Ann Mulholland
Board member
Børge Astrup
CEO
Annual report 2021
54
Consolidated statement of changes in equity
(Amounts in NOK 1000)
Share
capital
Other
paid-in
capital
Other
equity
Trans-
lation
reserve
SUM
control-
ling
interest
Total
equity
capital
Equity as at 1 January 2020
(205 401 )
(5 394 )
(304 )
Profit for the period
(24 746 )
(24 746 )
(23 558 )
Other comprehensive
income
Total comprehensive
income for the period
(24 746 )
(3 129 )
(1 942 )
Transactions with owners in their capacity as
owners:
Issue of ordinary shares as
consideration for a business
combination, net of
transaction costs and tax
Share-based payments
Equity as at 31 December
2020
(228 313 )
Equity as at 1 January 2021
(228 313 )
Profit for the period
(103 050 )
(103 050 )
(102 660 )
Other comprehensive
(22 890 )
(22 890 )
(22 890 )
Total comprehensive
income for the period
(103 050 )
(22 890 )
(125 939 )
(125 549 )
Transactions with owners in their capacity as
owners:
Issue of ordinary shares as
consideration for a business
combination, net of
transaction costs and tax
Proceeds from issuance of
shares net of transaction
costs
Share-based payments
Equity as at 31 December
2021
(327 417 )
(6 668 )
Annual report 2021
55
Consolidated statement of cash flow
(Amounts in NOK 1000)
Note
2021
2020
Profit before tax
(118 750 )
(16 833 )
Depreciation and amortisation
10
Depreciation right-of-use assets
10
Amortisation
11
Share-based payments
Gain on sale of business reclassified to investment
activities
7
(8 000 )
Gain from sale of PPE reclassified to investment activities
7
(4 835 )
Remeasurement of contingent liability
7
Net exchange differences
Taxes paid
(1 474 )
(5 514 )
Interest expense (revenue) reclassified to
investing/financing activities
Changes in net operating working capital core*
(30 107 )
Changes in net operating working capital
Net cash flow from operational activities
Payment for acquisition of subsidiaries net of cash
acquired
22
(78 759 )
(61 414 )
Payment for equipment and other fixed assets
10
(141 392 )
(108 650 )
Payment for intangible assets
11
(48 883 )
(21 386 )
Proceeds from sale of property, plant and equipment
10
Proceeds from sale of business
22
Interest received
(488 )
Net cash used on investment activities
(174 594 )
(170 848 )
Proceeds from issuance of shares
Proceeds from borrowings
22
Repayment of borrowings
(41 783 )
(12 686 )
Lease repayments
4
(16 240 )
(17 459 )
Interest paid
(7 731 )
(5 350 )
Net cash flow from financing activities
Net change in cash and cash equivalents
(19 622 )
Cash and cash equivalents as at 1 January
14
Effects of exchange rate changes on cash and cash
equivalents**
(2 433 )
Cash and cash equivalents as at 31 December
14
* comprise changes in accounts receivables, inventories and accounts payables.
Annual report 2021
56
** Cash flow has been restated for 2020. Bank overdraft and cash is no longer presented net in the consolidated
statement of cash flow.
Annual report 2021
57
Notes to the Group accounts
1. General information and summary of significant accounting policies
How the figures are calculated
2. Segments
3. Revenues from contracts with customers
4. Payroll
5. Other operational costs
6. Other income
7. Financial income and expenses
8. Tax
9. Leases
10 Tangible Assets
11 Intangible assets
12 Inventories
13 Trade receivables and other receivables
14 Cash and cash equivalents
15 Borrowings
16 Other non-current liabilites
17 Current liabilities
Risk
18 Critical estimates
19 Impairment of intangible assets
20 Financial risk management
21 Legal disputes and contingencies
Group structure
22 Changes in Group structure and business combinations
Other
23 Related parties transactions
24 Earnings per share
25 Shares, capital structure and shareholders
26 Group structure
27 Remuneration to auditor
28 Remuneration to the board and executive management
29 Events after the reporting period
Annual report 2021
58
Notes to the consolidated financial statements
Note 1. General information and summary of significant accounting policies
Techstep ASA (the Company or Company) is a public limited liability company domiciled in Norway.
The address of its registered office is Brynsalléen 4, NO-0667 Oslo. The shares are listed on the Oslo
Stock Exchange under the TECH ticker. The Techstep Group (Group) consists of Techstep ASA and its
subsidiaries.
Techstep Group is a Nordic enabler of the mobile workplace, delivering a full range of hardware and
services to facilitate mobile workplaces.
The consolidated financial statements for Techstep Group for the year 2021 were approved by the
Board of Directors on 22 March 2022 and will be presented for approval by the Annual General
Meeting on 22 April 2022.
The Group has changed its consolidation system from Q4 2021 reporting to annual report. There are
therefore immaterial changes in the reported numbers. Rounding differences may occur in
summations and between the notes and the financial statements.
1.1 Basis for preparation
The consolidated financial statements have been prepared and presented in accordance with the
International Financial Reporting Standards (IFRS) as adopted by the EU. The financial statements
have been prepared on a historical cost basis.
1.2 Change in accounting principles
There are no new or amended accounting standards that required the Group to change its
accounting policies for the 2021 financial year
1.3 Functional and presentation currency
The Group presents its accounts in Norwegian Kroner (NOK), which is also Techstep ASA’s functional
currency. The figures presented in the annual accounts are in NOK thousand unless otherwise stated.
1.4 Consolidation principles and subsidiaries
Subsidiaries
The consolidated financial statements incorporate the financial statements of Techstep ASA (the
Company) and entities controlled by the Company (its subsidiaries). The Group controls an entity
when the Group is exposed to, or has rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group.
The income and expenses of Group subsidiaries acquired or disposed of during the year, are
included in the consolidated income statement from the effective date of acquisition and up to the
effective date of disposal, as appropriate.
Annual report 2021
59
Intercompany transactions, balances and gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated, unless the transaction provides evidence of an
impairment of the transferred asset.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the
consolidated income statement, the consolidated statement of comprehensive income, statement
of changes in equity, and the consolidated statement of financial position, respectively.
1.5 Transactions in foreign currencies
i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured in the
currency of the primary economic environment in which the entity operates (‘the functional
currency’). The consolidated financial statements are presented in NOK, which is Techstep ASA’s
functional and presentation currency.
ii) Transactions and balances
Foreign currency transactions are converted into the functional currency, using the exchange rates
on the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of
such transactions, and from the conversion of monetary assets and liabilities denominated in
foreign currencies at year-end exchange rates, are recognised in the consolidated income
statement.
Foreign exchange gains and losses are presented in the consolidated income statement, as
financial expenses.
iii) Group companies
The results and financial position of foreign operations that have a functional currency that is
different from the presentation currency, are converted into the presentation currency as follows:
●
Assets and liabilities for each balance sheet presented are translated at the closing rate on
the date of that balance sheet.
●
income and expenses for the consolidated income statement and statement of
comprehensive income are translated at average exchange rates (unless this is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction
dates, in which case income and expenses are converted on the dates of the transactions).
●
all resulting exchange rate differences are recognised in other comprehensive income.
When consolidated, translation differences arising from the translation of net investment in foreign
entities are recognised in other comprehensive income.
Goodwill and fair value adjustments arising from the acquisition of a foreign operation are treated
as the assets and liabilities of the foreign operation and converted at the closing rate.
1.6 Revenue recognition
Annual report 2021
60
Revenue from contracts with customers is recognised when a performance obligation in the
contract is satisfied. The amount recognised reflects the consideration to which the Group expects to
be entitled in exchange for those goods and services. For contracts with several performance
obligations, the transaction price is allocated to each performance obligation on a relative stand-
alone selling price basis.
Revenue from hardware sales
A major part of the Group’s revenue arises from the sale of hardware to its customers. The delivery of
the hardware in question is identified as the performance obligation. The customers obtain control of
the hardware when the item is shipped to the customers. Revenue is recognised at the time of
shipment as the performance obligations are then satisfied.
The sale of certain items of hardware triggers a right to a bonus from partners and suppliers.
Bonuses accounted for as revenue are driven by volumes sold of the underlying item. Bonuses are
recognised as revenue when the performance obligations for the sale of hardware are satisfied.
Revenue from licence sales
The Group provides various software licenses to its customers. Management has assessed the
customer contracts related to software licenses and have found the sale of software licenses to be
distinct performance obligations as software licenses. Customers can benefit from the license on its
own and it can be a stand-alone delivery with no other goods or services.
The Group provides both right-to-use licenses and right-to-access licenses.
For right-to-use licenses, the performance obligation is satisfied when the customer gains access to
the software license, and revenue from the sale of licenses is thus recognised at the point in time
when the software is transferred to the customer.
For right-to-access licences the performance obligation is satisfied over time.
The sale of certain of licenses triggers a right to a commission from partners and suppliers. The
commissions accounted for as revenue are driven by volumes sold of the underlying item.
Commissions are recognised as revenue when the performance obligations for the sale of the
license is satisfied.
Revenue from the sale of services
Techstep offers support and maintenance services to its customers. These services are organised as
subscription programmes where the customers have access to support and maintenance for a
monthly fee. The performance obligations related to support and maintenance are satisfied on an
ongoing basis, and revenue related to the sales of services are thus recognised on a linear basis
over time.
The sale of support and maintenance that exceed the subscription programme is recognised as
revenue based on time and material.
Bundles
Annual report 2021
61
As a part of several product bundles and as a stand-alone product, the Group offers a leasing
alternative to customers (Hardware-as-a-service). The Group uses external funding to finance the
offering. The Group sells the devices up front to an external funder and receives payment in full. The
devices are delivered to the end-users, and the end users are invoiced over the contract period from
the funder. The Group has no credit risk related to the end user. The funder is in the following
description the customer.
The Group has contracts with customers whereupon the customer can, at the end of the contract
period, require that the Group repurchases the devices at a predetermined price. This price is always
lower than the original selling price.
When the group enters into contracts containing repurchase-options management assesses
whether or not the customer has a significant economic incentive to utilise the option. Where it is
determined that the customer has a significant economic incentive to utilise the option, the contract
is determined to be a lease and the transaction is accounted for as a lease in accordance with IFRS
16.
Leasing - Lessor accounting
For each leasing contract the Group enters into with customers, management assesses whether the
contract shall be classified as an operational or financial lease based on the substance of the
transaction. As at the balance sheet date, the Group only has operational lease contracts with
customers.
Leasing contracts with repurchase agreements are accounted for as operating leases with rentals
payable up front at the inception of the lease. There are no other variable lease payments. The
repurchase obligation is fixed at the inception of the lease. At the end of the lease period the Group
expects to repurchase the devices from the customer.
Payment received from the customer is accounted for as deferred revenue and recognised as
revenue on a straight-line basis over the lease term, less the agreed-upon residual value
(repurchase amount).
The respective leased assets are included in the balance sheet based on their nature and
depreciated over the lease term to the expected second-hand market value.
1.7 Other income and other expenses
Other income and expenses of a special nature are presented in the separate line items “Other
income and other expenses within operating profit (loss)”. Such items will be characterised by being
of a non-recurring nature and not being reliable indicators of underlying operations. Other income
and expenses will include items such as restructuring costs related to executive management,
acquisition-related costs, gains or losses on the both sale and remeasurement of assets or liabilities.
Acquisition-related costs may include both costs related to acquisitions closed and transactions
that were not completed.
1.8 Business combinations
Annual report 2021
62
Acquisitions of businesses are accounted for using the acquisition method. The consideration
transferred in a business combination is measured at fair value, which is calculated as the sum of
the acquisition-date fair value of the assets transferred by the Group, liabilities incurred by the
Group in relation to the former owners of the acquiree, and the equity interests issued by the Group
in exchange for control of the acquiree. Acquisition-related costs are expensed as incurred.
On the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognised
at their fair value, except for:
●
Deferred tax assets or liabilities are recognised and measured in accordance with IAS 12 -
Income taxes.
●
Liabilities or assets related to employee benefit arrangements are recognised and
measured in accordance with IAS 19 - Employee benefits.
The Group recognises any non-controlling interest in the acquired entity on an acquisition-by-
acquisition basis, at the non-controlling interest’s proportionate share of the acquired entity’s net
identifiable assets.
Goodwill is measured as the excess of the consideration transferred, the amount of any non-
controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity
interest in the acquiree (if any), over the net of the acquisition-date amounts of the identifiable
assets acquired and the liabilities assumed.
Where settlement of any part of a cash consideration is deferred, the amounts payable in the future
are discounted to their present value as at the date of exchange. The discount rate used is the
entity’s incremental borrowing rate, i.e. the rate at which a similar borrowing could be obtained from
an independent financier under comparable terms and conditions.
Changes in the fair value of the contingent consideration that qualify as measurement period
adjustments, are adjusted retrospectively, with corresponding adjustments against goodwill.
Measurement period adjustments are adjustments that arise from additional information obtained
during the measurement period (the measurement period cannot exceed one year from the
acquisition date), about facts and circumstances that existed on the acquisition date.
Changes in the fair value of contingent consideration not classified as equity that does not qualify as
a measurement period adjustment are remeasured at subsequent reporting dates. The
corresponding gain or loss is recognised in the consolidated income statement on the line items
other income or other expenses as appropriate.
When a business combination is achieved in stages, the Group’s previously held equity interest in the
acquiree is remeasured at fair value on the acquisition date (i.e. the date when the Group obtains
control) and the resulting gain or loss, if any, is recognised in the consolidated income statement.
Amounts arising from interests in the acquiree prior to the acquisition date that have been
previously recognised in other comprehensive income, are reclassified to the consolidated income
statement where such treatment would be appropriate.
1.9 Intangible assets
Annual report 2021
63
Intangible assets with finite useful lives that are acquired separately, are carried at cost less
accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a
straight-line basis over their estimated useful lives. The estimated useful life and amortisation
method is reviewed at the end of each reporting period, with the effect of any changes on estimates
being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that are acquired separately, are carried at cost less
accumulated impairment losses.
The costs of intangible assets acquired through acquisitions are recorded at fair value as at the date
of acquisition.
Software expenses related to the purchase of new computer programmes are accounted for as an
intangible asset if these expenses are not part of hardware acquisition costs. Costs incurred due to
updates and general maintenance of the software, are accounted for as running costs over the
income statement, unless the changes in the software increase the future economic benefits from
the software.
1.10 Property, plant and equipment
Property, plant and equipment are carried at cost less accumulated depreciation and accumulated
impairment losses.
The cost of the asset, less its estimated residual value, is depreciated on a straight-line basis over
the estimated useful life of the asset. Estimates of residual values are applicable for the Group’s
leasing offering where assets are sold at the end of the lease. The estimated useful lives, residual
values and depreciation methods are reviewed at the end of each reporting period, with the effect of
any changes in estimates accounted for on a prospective basis.
An item of property, plant and equipment is derecognised upon disposal, or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or loss that
arises on the disposal or retirement of an item of property, plant and equipment is determined as
the difference between the sales proceeds and the carrying amount of the asset and is recognised
in the income statement.
1.11 Impairment of intangible assets and property, plant and equipment
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and
are tested annually for impairment, or more frequently if events or changes in circumstances
indicate that the carrying amount might be impaired. Other assets are tested for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised as the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less
costs of disposal, and value in use. For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or Groups of assets (cash-generating units). Non-
financial assets, other than goodwill, that have historically been impaired are reviewed for possible
reversal of the impairment at the end of each reporting period.
Annual report 2021
64
1.12 Inventories
Inventories are measured at the lower of cost and net realisable value. Cost is determined using the
FIFO or weighted average method, depending on the nature of the inventories.
1.13 Trade receivables
Trade receivables are initially measured at fair value and subsequently measured at amortised cost
using the effective interest method, less provision for impairment. For trade receivables the loss
allowance is measured at the lifetime expected credit loss.
1.14 Cash and cash equivalents
Cash and cash equivalents in the consolidated statement of financial position comprise all cash
and bank deposits.
1.15 Financial instruments
Financial assets and liabilities include investment in shares, trade receivables, other receivables,
borrowings, trade payables, other current and non-current liabilities.
Financial assets and financial liabilities) are recognised initially on the date when the Group
becomes a party to the contractual provisions of the instrument.
The Group classifies, at initial recognition, its financial instruments in one of the following categories:
●
Financial assets or financial liabilities at fair value through profit or loss,
●
Financial asset at amortised cost,
●
Financial liabilities at amortised cost
The classification depends on the Group’s business model for managing them and the contractual
cash-flow characteristics of the instrument.
Financial assets or financial liabilities at fair value through profit or loss are financial assets held for
trading and acquired primarily with a view of selling in the near term.
Financial assets at amortised cost are financial assets held to collect the contractual cash flow and
where the cash flows are solely payment of principal and interest on the outstanding principal. The
category is included in the consolidated statement of financial position financial line items Other
non-current assets, Trade receivables, Other receivables and Cash and cash equivalents. Financial
assets at amortised cost are recognised initially at fair value plus directly attributable transaction
costs. Subsequently, if the asset is non-current it is measured at amortised cost using the effective
interest method, reduced by any impairment loss. The carrying amounts of line items classified as
current are assumed to be the same as their fair values, due to their short-term nature. Short-term
loans and receivables are for practical reasons not amortised unless the effect is material.
The category financial liabilities at amortised cost is included in the consolidated statement of
financial position line items Non-current interest-bearing borrowings, Other non-current debt,
Current interest-bearing borrowings, Trade payables, Tax payables, Public duties and Other current
liabilities. Items in the Other financial liabilities-category are recognised initially at fair value.
Annual report 2021
65
Subsequently, if they are non-current, other financial liabilities are measured at amortised cost using
the effective interest method. Effective interest is recognised in the income statement as financial
expenses. Current items in the category are for practical reasons not amortised unless the effect is
material.
Financial assets are derecognised when the contractual rights to the cash flows from the financial
asset expire and the Group has transferred substantially all the risks and rewards of ownership.
Financial liabilities are derecognised when the obligation is discharged, cancelled, or expires. Any
rights and obligations created or retained in such a transfer are recognised separately as assets or
liabilities. The Group assesses quarterly whether there is objective evidence that a financial asset or
Group of financial assets is impaired.
For trade and other receivables, default in payments, significant financial difficulties of the debtor,
probability that the debtor will enter bankruptcy or debt settlement negotiations are considered to
be indicators that the Group will not be able to collect all amounts due according to the original
terms of the receivables. For trade receivables the loss allowance is measured at the lifetime
expected credit loss. The loss is recognised as other operating expenses in the income statement,
while impairment of other financial assets is recognised under financial expenses.
The fair value of financial instruments is based on quoted prices as at the balance sheet date in an
active market, if such markets exist. If an active market does not exist, fair value is established by
using valuation techniques that are expected to provide a reliable estimate of the fair value. The fair
value of unlisted securities is based on cash flows discounted using an applicable risk-free market
interest rate and a risk premium specific to the unlisted securities.
Financial assets and liabilities measured at fair value are classified according to the valuation
method:
Level 1: Valuation based on quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2: Valuation based on inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived
from prices).
Level 3: Valuation based on inputs for the asset or liability that are unobservable market data.
If one or more of the significant inputs are not based on observable market data, the instrument is
included in level 3. Changes in fair value recognised in other comprehensive income is recognised in
the line-item Exchange differences on converting foreign operations. Changes in fair value
recognised in profit or loss are presented in the line item, Financial expenses and Other income and
expenses.
1.16 Accounts payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of
the balance sheet date which are unpaid. The amounts are unsecured payables and are usually
paid within 30 days of recognition. Trade and other payables are presented as trade payables,
Annual report 2021
66
unless payment is not due within 12 months of the reporting period. They are recognised initially at
their fair value and subsequently measured at amortised cost using the effective interest method.
1.17 Dividend and interest income
Dividend income from investments is recognised when the shareholder’s right to receive payment
has been established (provided it is probable that the economic benefits will flow to the Group and
the amount of income can be measured reliably).
1.18 Income tax
The income tax expense or credit for the period is the tax payable on the current period’s taxable
income, based on the applicable income tax rate for each jurisdiction, adjusted for changes in
deferred tax assets and liabilities attributable to temporary differences, and for unused tax losses.
i) Tax payable
The current income tax charge is calculated based on the tax laws enacted, or substantively
enacted, at the end of the reporting period in Norway, Sweden and Denmark, where subsidiaries
generate taxable income. Management periodically evaluates positions taken in tax returns, with
respect to situations in which applicable tax regulation is subject to interpretation. Management
establishes provisions where appropriate, based on amounts expected to be paid to the tax
authorities.
ii) Deferred tax
Deferred income tax is provided on temporary differences arising between the tax bases of assets
and liabilities, and their carrying amounts in the consolidated financial statements. However,
deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred
income tax is determined using tax rates (and laws) that have been enacted, or substantially
enacted, by the end of the reporting period, and are expected to apply when the related deferred
income tax asset is realised, or the deferred income tax liability is settled.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available
to utilise the temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets and liabilities, and when the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to
offset and intends to either settle on a net basis, or to realise the asset and settle the liability
simultaneously.
Current and deferred tax is recognised in the income statement, except to the extent that it relates to
items recognised in other comprehensive income, or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly in equity, respectively.
1.19 Equity
The nominal value of treasury shares is reported in the balance sheet, as a deduction to other equity.
Annual report 2021
67
Transaction costs in relation to equity transactions are charged to equity after deducting tax.
1.20 Share-based payments
Share-based payments are part of the remuneration to executive management and other key
personnel.
The fair value of options granted is recognised as an employee benefit expense with a
corresponding increase in equity. The total amount to be expensed is determined by reference to the
fair value of the options granted.
The total expense is recognised over the vesting period, which is the period over which the vesting
conditions are satisfied. At the end of each period, the estimate of the number of options that are
expected to vest based on the non-market vesting and service conditions is revised. The revision, if
any, of the original estimates is recognised in the income statement, with a corresponding
adjustment to equity.
Social security tax is provided for at each balance sheet date based on the intrinsic value of the
options.
1.21 Retirement benefit plan
The Group has defined contribution plans. A defined contribution plan is a retirement plan in which
the Group pays fixed contributions to a separate legal entity. The Group has no legal or other
obligation to pay additional contributions if the entity does not have sufficient assets to pay all
employee benefits associated with earnings in present and previous periods. Pre-paid contributions
are recorded in the accounts as an asset, to the extent the contribution may be refunded or may
reduce future contributions.
1.22 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost.
1.23 Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result
of a past event, it is probable that the Group will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, and considers the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to settle
the present obligation, its carrying amount is the present value of those cash flows (where the effect
of the time value of money is material).
Annual report 2021
68
When some or all the economic benefits required to settle a provision are expected to be recovered
from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement
will be received, and the amount of the receivable can be measured reliably.
1.24 Cash flow statement
The cash flow statement is presented using the indirect method. The Group’s activities are divided
into operational, investment and financing activities. Cash investment in new business is classified
as payment for the acquisition of subsidiaries, net of cash acquired in the cash flow statement.
1.25 Segment information
The division into operating segments corresponds to the management structure and the internal
reporting to the Group’s chief operating decision maker (CODM), defined as the CEO. Companies are
allocated to a segment based on the geographical location of the company.
1.26 Leasing
All leases are accounted for by recognising a right-of-use asset and a lease liability except for:
●
Leases of low value assets; and
●
Leases with a duration of 12 months or less
Lease liabilities:
Lease liabilities are measured at the present value of the contractual payments due to the lessor
over the lease term, with the discount rate determined by reference to the rate inherent in the lease.
If the inherent interest rate is not readily determinable, the Group’s incremental borrowing rate on
commencement of the lease is used. Variable lease payments are only included in the
measurement of the lease liability if they depend on an index or rate. In such cases, the initial
measurement of the lease liability assumes the variable element will be regulated throughout the
lease term. The estimate is based upon management judgement. On initial recognition, the carrying
value of the lease liability will include the following if applicable:
●
the exercise price of any purchase option granted in favour of the Group if it is reasonably
certain to exercise that option;
●
any penalties payable for terminating the lease, if the term of the lease has been estimated
based on the termination option being exercised.
Subsequent to initial measurement lease liabilities increase as a result of interest charged at a
constant rate on the balance outstanding and are reduced for lease payments made.
Right-of-use assets
Right-of-use assets are initially measured at the amount of the lease liability.
Right-of-use assets are depreciated on a straight-line basis over the remaining term of the lease.
The remaining term of the lease is for all leases held by the Group assessed to be equal to the
economic life of the asset.
Leases of low value assets and short-term leases
Annual report 2021
69
Payments associated with short-term leases of equipment and vehicles and all leases of low-value
assets are recognised on a straight-line basis as an expense in profit or loss on the financial
statement line item Other operational costs. Short-term leases are leases with a lease term of 12
months or less.
1.27 Use of estimates in the preparation of financial statements
Management has used estimates and assumptions that affect the assets, liabilities, revenues,
expenses and information regarding potential liabilities. Future events may lead to the estimates
changing. Estimates and underlying assumptions are assessed continuously. Changes in
accounting estimates are recognised in the period when the change occurs.
See Note 18 for a description of assets and liabilities subject to significant estimation uncertainty.
1.28 Earnings per share
i) Basic earnings per share
Basic earnings per share are calculated by dividing:
●
The profit attributable to owners of the company, excluding any costs of servicing equity
other than ordinary shares.
●
By the weighted average number of ordinary shares outstanding during the financial year,
excluding treasury shares.
ii) Diluted earnings per share
Diluted earnings per share adjust the figures used in the determination of basic earnings per share,
to take into account:
●
The after-income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares, and
●
The weighted average number of additional ordinary shares that would have been
outstanding, assuming the conversion of all dilutive potential ordinary shares.
As at year end 2021 the Group has options outstanding that are in the money. Basic earnings per
share and diluted earnings per share therefore differ.
1.29 New standards and interpretations not yet effective
The Group has elected not to early-adopt any standards or interpretations that have an effective
date after the balance sheet date. Standards and amendments that are issued, but not yet effective,
are not expected to have a material effect on the Group’s financial statements.
Annual report 2021
70
Note 2. Segments
Techstep has four Segments, which are represented by the four geographic locations where the
Group's entities are incorporated. The entities are controlled and owned by the Techstep Group. The
segment HQ comprise Techstep ASA.
Eliminations comprise intersegment sales. Transactions between operating segments are
conducted on normal commercial terms.
1) Norway
●
Techstep Norway AS: The offerings of the company are mobile hardware, servicing, support
and mobility consultancy services. The company is located in Oslo and Sandefjord.
●
Mytos AS: A Norwegian-based software as a services company with mainly recurring revenue.
Mytos offers a full range of mobile expense management (TEM) modules, all with proprietary
software and highly user-friendly implementation and operation. The company is located in
Oslo.
●
Techstep Finance AS: Provides financing and remarketing services.
2) Sweden
●
Techstep Sweden AB: The company offers mobile hardware, industry leading cloud-based
(UCaaS) PBX solutions, Mobility consultancy services and Enterprise Mobility Management
(EMM) services, including Mobile Security, system design, implementation, mobile device
management. The company is located in Karlstad, Gothenburg and Stockholm.
●
Optidev AB: The company develop and provide enterprise mobility software and solutions,
predominantly to customers in the transportation, logistics and public safety sectors in
Sweden, Norway and Denmark.
●
Techstep Finance AB: Provides financing and remarketing services.
3) Denmark
●
Techstep Denmark ApS: Established to invoice Danish customers. The company is fully
supported from Norway and does not have any employees.
●
Optidev ApS: Established as a sales office for Optidev AB.
4) Poland
●
Famoc S.A.: A Polish software-as-a-services company with mainly recurring revenue. Famoc
offers a portfolio of solutions for the mobile device lifecycle management market. The
company is located in Gdansk.
●
Famoc Software Ltd: An Ireland based company acting as a reseller of Famoc S.A. software to
customers outside Poland.
Annual report 2021
71
●
Santa Maria Private Ventures sp. z.o.o.: A holding company owning shares in Famoc S.A. and
Famoc Software sp. z.o.o.
5) Headquarters (HQ)
●
Techstep ASA
FY 2021
Norway
Sweden
Denmark
Poland
HQ
Elim-
inations
Total
Operating revenues from external
customers
813 205
435 838
41 441
14 607
-
-
1 305 090
Operating revenues from other segments
72 317
41 404
7
2 718
37 148
(153 593)
-
Operating revenues
885 522
477 241
41 448
17 325
37 148
(153 593)
1 305 090
Cost of goods sold
(573 144)
(280 461)
(34 671)
(6 770)
-
49 741
(845 305)
Salaries and personnel costs
(130 854)
(115 246)
(2 981)
(8 540)
(24 549)
550
(281 620)
Other operational costs
(54 309)
(44 341)
(1 121)
3 108
(87 220)
75 334
(108 549)
Depreciation
(69 208)
(38 139)
(473)
(403)
(6)
-
(108 229)
Amortisation
(20 118)
(27 709)
-
(6 896)
-
-
(54 723)
Impairment
(3 815)
-
-
-
-
3 815
-
Other income
-
-
-
22
-
-
22
Other expenses
(6 728)
-
-
(0)
(9 716)
(764)
(17 209)
Operating profit (loss)
27 346
(28 655)
2 202
(2 155)
(84 344)
(24 917)
(110 522)
Financial income
(34 758)
(104)
3
4
75 879
(28 793)
12 232
Financial expenses
(4 592)
(3 112)
(106)
(4)
(15 536)
2 890
(20 460)
Profit (loss) before tax
(12 004)
(31 871)
2 099
(2 155)
(24 001)
(50 819)
(118 750)
FY 2020
Norway
Sweden
Denmark
Poland
HQ
Elim-
inations
Total
Operating revenues from external
customers
761 724
358 549
21 098
-
-
1 495
1 142 866
Operating revenues from other segments
31 662
26 854
-
-
31 922
(90 438)
-
Operating revenues
793 386
385 403
21 098
-
31 922
(88 943)
1 142 866
Cost of goods sold
(511 645)
(262 928)
(21 209)
-
-
31 203
(764 579)
Salaries and personnel costs
(127 781)
(64 650)
(338)
-
(15 457)
(16)
(208 243)
Other operational costs
(45 573)
(24 305)
(178)
-
(35 036)
30 688
(74 405)
Depreciation
(70 205)
(17 029)
(69)
-
(30)
0
(87 332)
Amortisation
(15 952)
(11 931)
-
-
-
(9)
(27 892)
Impairment
-
-
-
-
-
-
-
Other income
-
-
-
-
4 859
-
4 859
Other expenses
7 809
4 835
-
-
(8 687)
-
3 956
Operating profit (loss)
3 186
9 395
(696)
-
(22 429)
(225)
(10 770)
Financial income
674
2 418
189
-
20 086
(17 606)
5 760
Financial expenses
(4 563)
(4 635)
(480)
-
(5 697)
3 552
(11 822)
Profit (loss) before tax
432
7 177
(987)
-
(8 040)
(15 415)
(16 833)
Annual report 2021
72
Note that Techstep has changed its operating segment since reporting in Q4 2021 and annual report
2020. The segments are changed to align with how management follows up the group. The 2020
figures are restated to be comparable.
Operating revenues and non-current assets by geographical area
In the presentation of geographical information, the operating revenues are attributed according to
the location of Group companies. There are no significant differences between the attribution of
operating revenues based on the locations of the Group companies, and an attribution based on the
customers' location. Non-current assets are attributed based on the geographical location of the
assets.
Non-current assets
2021
2020
Norway
511 701
492 283
Sweden
348 700
414 564
Denmark
1 388
246
Poland
96 979
-
Total
958 768
907 093
Annual report 2021
73
Note 3. Revenues from contracts with customers
In the following tables, Total revenue is disaggregated by major revenue streams divided into the
reportable segments as shown in Note 2.
Hardware revenue comprises hardware and related bonuses. Bonus are additional revenues related
to hardware sales.
Solutions revenue comprises own software, third party licenses, consulting services and related
commissions. Commissions are related to services rendered to third party connection providers.
2021
Norway
Sweden
Denmark
Poland
Group
Total revenues
789 491
456 826
41 448
17 325
1 305 090
Hardware
Hardware revenues
524 717
221 641
24 790
365
771 513
Leasing
82 948
46 557
4 732
0
134 237
Bonus
37 044
12 119
0
0
49 163
Total
644 709
280 317
29 522
365
954 912
Solutions
Advisory & Services
86 400
155 216
11 255
1 458
254 329
Own Software
39 090
18 505
689
15 503
73 787
Commission
17 791
2 372
0
0
20 164
Total
143 281
176 094
11 944
16 960
348 279
Other revenues
Other
1 501
415
-18
0
1 898
Total
1 501
415
-18
0
1 898
2020
Norway
Sweden
Denmark
Poland
Group
Total revenues
750 877
370 891
21 098
0
1 142 866
Hardware
Hardware revenues
473 257
234 795
15 898
0
723 950
Leasing
78 678
24 182
2 446
0
105 305
Bonus
31 040
3 138
0
0
34 179
Total
582 975
262 115
18 344
0
863 434
Solutions
Advisory & Services
105 176
93 196
2 686
0
201 059
Own Software
38 460
4 764
39
0
43 264
Commission
20 895
10 291
0
0
31 186
Total
164 532
108 251
2 726
0
275 508
Other revenues
Other
3 371
524
28
0
3 923
Total
3 371
524
28
0
3 923
Annual report 2021
74
Contract assets and contract liabilities
Most of the Group's solution revenues are annual. The majority of the contracts follows the calendar
year. The contract assets and liabilities related to Solutions as per the balance sheet date are
therefore immaterial. This also applies to the unfulfilled performance obligations.
Sale of hardware and licences does not lead to material contract assets or liabilities.
Contract assets and liabilities originate from sale of support. Customers are invoiced in advance for
monthly or quarterly support subscriptions. The Group also has customers who are invoiced after the
services are rendered, monthly or annually. Contracts assets and liabilities vary to an extent
throughout the reporting period.
Other arrangements with customers do exist but are deemed immaterial.
Deferred revenue
The Group's revenue from sale of hardware is divided into two streams: The customer purchases the
hardware and the performance obligation is settled when the hardware is delivered, or the customer
enters into a leasing agreement, where the hardware will be returned at the end of the lease.
The contracts where the Group acts as a lessor last from 18 - 36 months. Revenue is recognised
linearly over the contract period as the performance obligation is settled.
At the commencement of the lease agreements the group receives full settlement from the
financing partners as described under section 1.6
Revenue recognition
in the accounting policies
.
The payment received is split between deferred revenue specified below, and residual obligation
(amount to be repaid). The residual obligation in specified in note 16 (non-current) and note 17
(current)
Changes in deferred revenue during the year
2021
2020
Opening balance deferred revenue as at 1
January
78 783
63 836
Additions from business combinations
0
13 005
Net movement
57 190
743
Translation differences
-653
1 199
Closing balance deferred revenue as at 31 December
135 320
78 783
2021
Of the total deferred revenue as at 31 December 2021, NOK 44.5 million will be recognised in 2023 or
later.
The material amount in deferred revenue is related to contracts with customers where the customer
has a return option and management’s assessment is that this option will be utilised. Such contracts
are accounted for as operational leases, where the Group is the lessor.
Payment terms and customer base
Customers have payment terms varying from 15-90 days.
Annual report 2021
75
Of the Group's total customer base as at 31 December 2021, the five largest customers represent
approximately 12 % (17 %) of total revenue in 2021, and the ten largest customers represent
approximately 23 % (24 %) of total revenue.
Unsatisfied performance obligations
The Group has unsatisfied performance obligations resulting from fixed price long-term contracts
such as smart device and Smart works. The unsatisfied performance obligations are satisfied
through passage of time. As at the balance sheet date the Group’s unsatisfied performance
obligations were NOK 135.3 million og which NOK 131.9 million will be accounted for as revenue in 2022.
The remaining balance will be accounted for as revenue in 2023 or later.
The amounts disclosed does not include variable considerations.
The Group’s Annual Recurring Revenue metric, refer to Alternative performance measures, is a part
of the unsatisfied performance obligations disclosed above until earliest possible cancellation date
for the customer. The disclosed ARR figure and the unsatisfied performance obligations are therefore
not directly comparable.
Management assessments
Recognition of revenue from combined customer contracts
Consolidated operating revenues include both sales of hardware and IT-related services, often
derived from recognition of multiple elements in the same customer contract. Revenue is recognised
when control over the goods and services have been transferred to the customer.
Determining the transaction price for combined contracts
The Group determines the transaction price in respect of each performance obligations within its
contracts with customers when the stand-alone selling price for each performance obligation is not
readily available by assessing the stand-alone selling prices based on the Group’s customer
contracts for comparable products and services. This relates to contracts with customers where
third-party licenses are bundled with support and maintenance services. The income related to the
third-party license is determined based on the abovementioned stand-alone selling prices. The
residual income is allocated to support and maintenance. The revenue recognition is either at a
point in time or over time depending on the services rendered.
Variable considerations such as commissions, vendor discounts, rebates and other contractual
bonus elements may arise based on contracts with vendors and partners. Variable considerations
requiring management assessment are related to achieving certain thresholds in the agreement. In
determining the impact of variable considerations, the Group uses the most likely amount
prescribed in IFRS 15 whereby the transaction price is determined by reference to the single most
likely amount in a range of possible consideration amounts.
Annual report 2021
76
Note 4. Payroll
2021
2020
Salaries and holiday pay
213 438
160 975
Social security tax
45 946
30 718
Pension costs including social security tax
16 512
12 204
Other personnel costs
5 724
4 346
Total personnel costs
281 620
208 243
Number of employees at year end
341
289
All companies in the Group have defined contribution pension plans covering all employees.
Regarding remuneration to executive management, please refer to Note 28 Remuneration to
management.
Note 5. Other operational costs
2021
2020
Office rental and operations
6 143
5 312
Human resources
8 305
4 574
Sales and marketing
15 809
7 681
IT expenses
46 491
27 082
Fees for external services
18 587
16 729
Factoring expenses
502
1 611
Communication
1 882
1 732
Travel expenses
1 916
3 772
Other costs
8 914
5 913
Total operating costs
108 549
74 405
The general increase in costs are driven by the transition in the business model from transactional to
recurring. Also contributing is the full year effect of the Optidev acquisition and the Famoc
acquisition.
Annual report 2021
77
Note 6. Other income and other expenses
2021
2020
Derecognition of contingent consideration
0
4 859
Gain on sale of business unit (IT)
0
8 000
Gain on sale of office building
0
4 835
Other non-recurring income
22
150
Total
22
17 844
2020
In relation to the acquisition of Wizor AS (now a part of Techstep Norway AS), a contingent
consideration was recognised. The payment of the contingent consideration was dependent on the
company reaching an accumulated Gross profit target ending in December 2020. the target was not
reached. The contingent consideration is reversed in full in 2020.
Techstep entered into an agreement to transfer its IT Operations and Support business unit to
Crayon AS for a total consideration of NOK 8 million. The transaction was structured as an asset
purchase and took place 1 April 2020.
Techstep Sweden sold its office building in Karlstad in 2020. The premises were sold for NOK 12.9
million. The book value of the premises was NOK 8.1 million at the transaction date.
Other expenses
2021
2020
Acquisition related costs
(10 120)
(9 028)
Other non-recurring expenses
(7 088)
-
Total
(17 209)
(9 028)
2021
Acquisition related costs are related to the acquisition of Famoc and other non-recurring expenses
are related to severance packages to former CEO and Managing director in Techstep Norway AS.
2020
Acquisition related costs are related to the acquisition of Optidev.
Note 7. Financial income and expenses
2021
2020
Interest income
1 368
-488
Dividends from equity investments
0
7
Other financial income
10 864
6 240
Total financial income
12 232
5 760
Interest expenses interest bearing debt
-8 021
-5 350
Interest expenses leasing
-1 247
-1 392
Other financial expenses
-11 192
-5 079
Total financial expenses
-20 460
-11 822
Annual report 2021
78
Other financial income and expenses mainly comprises agio and disagio, respectively.
Annual report 2021
79
Note 8. Tax
Income tax expense
2021
2020
Current tax
-2 770
-11 017
Change in deferred tax
18 860
4 292
Tax expense
16 091
-6 725
Reconciliation of relationship between accounting profit and tax expense
Profit before tax
-118 750
-16 832
Tax at the Norwegian tax rate of 22%
26 125
3 716
Tax effect permanent differences
-6 620
-7 593
Difference in tax rates
-467
-254
Other
-2 947
-2 594
Income tax expense
16 091
-6 725
Effective tax rate
14%
40%
Amounts recognised directly in equity
Deferred tax: Share issue cost
-1 109
-37
Total
-1 109
-37
Tax losses
Unused tax losses for which no deferred tax asset has been recognised, see note 18
-441 901
-442 017
Potential tax asset at 22% tax rate
-97 218
-97 244
Deferred tax
The balance comprises temporary differences attributable to: Property, plant and
equipment
111 638
134 765
Inventories
4 784
-102
Trade receivables and other receivables
-320
-120
Leasing
-2 309
-69
Other current liabilities
-330
24 644
Tax loss carried forward
-49 500
-33 416
Carry forward interest
-1 991
-3 779
for which no deferred tax asset has been recognised
0
5 053
Total basis for deferred tax
61 973
126 976
Tax rate deferred tax
22%
22%
Net deferred tax with applicable year's tax rate
13 634
29 101
Change in deferred tax due to change in tax rate
27
13
Difference in tax rates
-765
-1 596
Adjustment, prior years
-401
0
Net deferred tax (+)/ deferred tax asset (-)
12 496
27 518
Net deferred tax related to Norway
-6 147
657
Net deferred tax related to Sweden
18 643
26 860
Total deferred tax (+)/ deferred tax asset (-)
12 496
27 517
Annual report 2021
80
Tax on each component of other comprehensive income is as follows
Exchange gains on the translation of foreign operations
2021
2020
Before tax
5 927
3 320
Tax
-1 304
-730
After tax
4 623
2 590
Annual report 2021
81
Note 9. Leases
Amounts recognised in the balance sheet
The balance sheet shows the following amounts relating to leases:
Right-of-use assets
Buildings
Equipment
Vehicles
Licences
Total
As at 1 January 2021
29 471
1 812
2 796
6 153
40 233
Additions
4 963
0
2 444
0
7 407
Additions from business combinations
845
0
0
0
845
Depreciation
-9 391
-483
-2 111
-1 458
-13 443
Variable lease payment adjustment
528
0
0
0
528
Translation differences
-3 696
-294
-423
-890
-5 303
As at 31 December 2021
22 720
1 035
2 707
3 805
30 267
Buildings
Equipment
Vehicles
Licences
Total
As at 1 January 2020
26 111
2 296
2 037
5 403
35 847
Additions
3 925
0
1 714
4 819
10 458
Additions from business combinations
7 731
0
1 029
0
8 760
Depreciation
-9 227
-483
-2 257
-4 069
-16 036
Variable lease payment adjustment
855
0
0
0
855
Translation differences
76
0
274
0
350
As at 31 December 2020
29 471
1 813
2 796
6 153
40 233
Lease liabilities
Buildings
Equipment
Vehicles
Licences
Total
As at 1 January 2021
31 769
1 853
2 822
4 005
40 450
Additions
4 963
0
2 444
0
7 407
Additions from business combinations
845
0
0
0
845
Interest expense
1 046
58
164
34
1 302
Lease payments
-11 779
-527
-2 395
-1 538
-16 240
Variable lease payment adjustment
528
0
0
0
528
Translation differences
-602
-232
-349
-274
-1 456
As at 31 December 2021
26 770
1 152
2 687
2 227
32 835
Buildings
Equipment
Vehicles
Licences
Total
As at 1 January 2020
33 936
2 306
2 582
4 555
43 379
Additions
3 925
0
1 714
4 819
10 458
Additions from business combinations
2 174
0
600
0
2 774
Interest expense
1 213
74
154
162
1 603
Lease payments
-10 414
-527
-2 373
-5 530
-18 844
Variable lease payment adjustment
855
0
0
0
855
Translation differences
80
0
145
0
225
As at 31 December 2020
31 769
1 853
2 822
4 005
40 449
Annual report 2021
82
Lease liabilities
2021
2020
Non-current
22 204
26 278
Current
10 631
14 172
Total
32 835
40 450
Maturity analysis nominal payments of lease liabilities 2021
Up to 3
months
Between 3
and 12
months
between 1
and 2 years
between 2
and 5 years
over 5
years
Lease liabilities
3 852
9 800
11 841
10 467
0
Maturity analysis nominal payments of lease liabilities 2020
Up to 3
months
Between 3
and 12
months
between 1
and 2 years
between 2
and 5 years
over 5
years
Lease liabilities
3 972
11 501
12 742
14 809
0
Amounts recognised in the statement of profit or loss
The statement of profit or loss shows the following amounts relating to leases:
2021
2020
Depreciation charge
Buildings
9 391
9 227
Equipment
483
483
Vehicles
2 111
2 257
Licences
1 458
4 069
Total
13 443
16 036
Interest charge
1 247
1 603
Other charges*
5 282
6 155
*Other charges comprise office expenses such as electricity, cleaning, security, shared costs and
miscellaneous.
Description of the Group’s leasing activities
The Group leases offices, equipment, vehicles and licenses. Rental contracts are typically made for
fixed periods of 12 months to 5 years but may have extension options.
Incremental borrowing rate:
To determine the incremental borrowing rate, the Group: where possible, uses recent third-party
financing received by the individual lessee as a starting point, adjusted to reflect changes in
Annual report 2021
83
financing conditions since third party financing was received uses a build-up approach that starts
with a risk-free interest rate adjusted for credit risk for leases held by the Group, which does not have
recent third-party financing, and makes adjustments specific to the lease, e.g. term, country,
currency and security.
Extension and termination options
Currently the Group has not included any extension or termination options in the liabilities. The
options are most widely used in rental of office buildings. All the Group’s contracts have from 1-4
years left of the rental period. The Group assesses that premises with less than 2 years will be
vacated at end of lease. For premises with longer contracts it is assessed that whether the extension
or termination options will be utilised is uncertain.
The majority of extension and termination options held are exercisable only by the Group and not by
the respective lessors.
Critical judgements in determining the lease term
In determining the lease term, management considers all facts and circumstances that create an
economic incentive to exercise an extension option, or not exercise a termination option. Extension
options (or periods after termination options) are only included in the lease term if the lease is
reasonably certain to be extended (or not terminated). The lease term is reassessed if an option is
actually exercised (or not exercised) or the Group becomes obliged to exercise (or not exercise) it.
The assessment of reasonable certainty is only revised if a significant event or a significant change
in circumstances occurs, which affects this assessment, and that is within the control of the lessee.
During the current financial year such an event has not occurred.
Other information:
The Group companies have not received any rent concessions during the pandemic. The
amendment made to IFRS 16 regarding rent concessions is not applicable for the Group.
Annual report 2021
84
Note 10. Tangible assets
Right of
use
assets
Equip-
ment*
Other
fixed
assets
Total
Accumulated cost as at 1 January 2021
69 045
279 256
35 052
383 353
Additions
10 579
140 212
1 179
151 970
Additions arising from business combinations
845
0
869
1 714
Disposals
-12 152
-122 605
-4 973
-139 730
Translation differences
-4 430
-4 629
-1 037
-10 096
Accumulated cost as at 31 December 2021
63 881
292 234
31 097
387 211
Accumulated cost as at 1 January 2020
47 552
105 865
19 966
173 383
Additions
9 287
105 340
3 836
118 462
Additions arising from business combinations
11 877
78 768
10 725
101 369
Disposals
0
-12 395
99
-12 296
Translation differences
330
1 679
425
2 434
Accumulated cost as at 31 December 2020
69 045
279 256
35 052
383 353
Accumulated cost as at 1 January 2021
-28 813
-153 906
-27 018
-209 737
Additions arising from business combinations
0
0
-766
-766
Current year depreciation
-13 443
-92 167
-2 619
-108 229
Disposals
5 386
95 875
4 982
106 242
Translation differences
3 244
731
341
4 315
Accumulated depreciation as at 31 December
2021
-33 625
-149 468
-25 081
-208 175
Accumulated depreciation as at 1 January
-10 962
-33 871
-16 703
-61 536
Additions arising from business combinations
-3 639
-47 936
-6 969
-58 544
Depreciation
-14 361
-71 560
-1 411
-87 332
Disposals
1
0
-1 971
-1 970
Translation differences
149
-538
35
-353
Accumulated depreciation as at 31 December
2020
-28 813
-153 906
-27 018
-209 737
Book value of assets 31 December 2021
30 255
142 766
6 015
179 037
Book value of assets 31 December 2020
40 233
125 350
8 033
173 616
2-10
years
2 years
3-5 years
Estimated economic life
Depreciation method
linear
linear
linear
*Equipment comprise mobile phones, tablets and other equipment where the Group is the lessor.
Annual report 2021
85
Note 11. Intangible assets
Goodwill
Customer
relationships
Other
intangible
assets
Total
Accumulated cost as at 1 January 2021
715 212
376 652
83 394
1 175 257
Additions
-
-
48 883
48 883
Additions arising from business combinations
64 052
18 735
22 087
104 874
Translation differences
(18 821)
(8 902)
(4 504)
(32 227)
Reclassified as held for sale
(24 054)
(1 364)
-
(25 418)
Accumulated cost as at 31 December 2021
736 389
385 121
148 288
1 269 797
Accumulated cost as at 1 January 2020
562 108
288 034
42 084
892 226
Additions
-
-
21 426
21 426
Additions arising from business combinations
143 960
84 693
19 688
248 340
Translation differences
9 144
3 925
196
13 265
Reclassified as held for sale
-
-
-
-
Accumulated cost as at 31 December 2020
715 211
376 652
83 394
1 175 257
Accumulated amortisation and impairment as at 1
January 2021
(143 840)
(276 577)
(21 577)
(411 900)
Additions arising from business combinations
-
-
(1 666)
(1 666)
Current year amortisation
(0)
(31 260)
(23 463)
(54 723)
Current year impairment
-
-
-
-
Translation differences
0
2 666
986
(2 026)
Reclassified as held for sale
-
696
696
Accumulated amortisation and impairment
(143 840)
(305 171)
(45 024)
(441 993)
Accumulated amortisation and impairment as
(143 840)
(258 050)
(10 010)
(411 900)
Additions arising from business combinations
-
-
(175)
(175)
Amortisation
-
(16 541)
(11 351)
(27 892)
Impairment
-
-
-
-
Translation differences
(0)
(1 986)
(40)
(2 026)
Reclassified as held for sale
-
-
-
-
Accumulated amortisation and impairment
as at 31 December 2020
(143 840)
(276 577)
(21 576)
(441 993)
Book value as at 31 December 2021
592 549
79 950
103 264
775 763
Book value as at 31 December 2020
571 371
100 075
61 818
733 263
Estimated economic lifetime in years
Indefinite
5 years
3-5 years
Depreciation method
none
linear
linear
Annual report 2021
86
For a description of movement in the categories Goodwill and Customer relationships, refer to Note
19 Impairment of intangible assets and Note 22 Changes in Group structure and Business
combinations.
Annual report 2021
87
Note 12. Inventories
Book value of inventories
2021
2020
Inventories
20 068
28 841
Less write-down of inventories
-678
-683
Total inventories
19 391
28 158
Note 13. Trade receivables and other receivables
Trade receivables and other receivables shown at maturity per 31 December 2021:
Days outstanding
Book
Value
not
over-
due
0-30
days over-
due
30-60 days
over-due
60-90 days
over-due
> 90 days
over-due
Trade receivables
232 106
138 315
79 860
9 757
2 897
1 278
Other current receivables
31 435
31 435
-
-
-
-
Less provision for bad debt
(1 877)
(401)
(399)
(288)
(232)
(557)
Total trade receivables and
other short-term receivables
261 664
-
-
-
-
-
Expected loss rate
-
0%
1%
3%
8%
75%
The company has reassessed its loss allowance for 2021 and aligned the expected loss rate with
historical and expected credit losses.
Trade receivables and other receivables shown at maturity per 31 December 2020:
Days outstanding
Book
Value
not
over-
due
0-30
days over-
due
30-60 days
over-due
60-90 days
over-due
> 90 days
over-due
Trade receivables
206 500
182 755
20 090
470
76
2 150
Other current receivables
33 594
33 594
-
-
-
-
Less provision for bad debt
(3 416)
(914)
(1 004)
(47)
(15)
(1 622)
Total trade receivables and
other short-term receivables
236 678
215 435
19 086
423
61
528
Expected loss rate
-
0%
5%
10%
20%
75%
Annual report 2021
88
Changes in the provision for bad debt during the year
2021
2020
Opening balance provision for bad debt as at 1 January
(3 416)
(1 046)
Net change in the provision during the year
1 539
(2 370)
Closing balance provision for bad debt as at 31 December
(1 877)
(3 416)
Other short-term receivables
2021
2020
Accrued revenues
9 230
16 063
Prepaid expenses
10 104
13 399
Other current receivables
12 101
4 133
Total
31 435
33 594
2021
2020
Actual losses on receivables
1 809
2 613
Note 14. Cash and cash equivalents
The Group’s cash and cash equivalents consists of
2021
2020
Cash and bank deposits
50 350
27 203
Total
50 350
27 203
Of which is restricted
6 196
6 356
The Group’s cash and cash equivalents consist in their entirety of short-term bank deposits.
The carrying amounts of the Group’s cash and cash equivalents by currency
2021
2020
NOK
27 734
6 849
SEK
12 350
16 373
Other
10 267
3 982
total
50 350
27 203
The Group has a credit facility of NOK 90 million related to the cash pool.
Annual report 2021
89
Note 15. Borrowings
The group's interest-bearing liabilities consist of:
2021
2020
Current
Non-
current
Current
Non-
current
Seller credits related to business combinations
27 574
31 986
24 141
50 785
Bank loan
25 055
65 416
18 261
57 753
Bank overdraft
21 919
0
43 100
0
Total interest-bearing debt
74 548
97 402
85 502
108 538
*refer to note 14. Net bank overdraft facility comprises of Bank overdrafts in cash pool and bank
deposits in cash pool.
The table below sets out expected nominal payments on borrowings:
Due within
Total
1 year
1-5 years
over 5
years
Annual interst rate
Bank overdraft facilities*
21 919
21 919
0
0
1-month NIBOR + 2.25%
Bank acquisition loan
85 825
22 256
63 568
0
3-month NIBOR + 2.50%
Bank loan, other
7 773
4 479
3 294
0
1,52 % - 2,76%
Seller credits related with
business combinations
62 413
31 606
30 807
0
3,00 % - 4,00%
Trade payables
193 833
193 833
0
0
Tax payable
-1 169
-1 169
0
0
Public duties
39 568
39 568
0
0
Other current liabilities
73 587
73 587
0
0
Total
588 954
474 769
97 670
0
*Refer to Note 14. for reconciliation of net cash position
The group discontinued its factoring facility in 2020. The factoring facility was replaced by an
increased overdraft facility.
The group has two overdraft facilities.
The Norwegian overdraft facility has a credit limit of NOK 80 million. In addition to interest, a quarterly
commission is charged in the amount of NOK 0.1 million (NOK 0.1 million).
The Swedish overdraft facilities have a total credit limit of SEK 14 million. The annual interest rate is 4.5
%. The facilities were not utilised as per year end 2021.
Pledges in relation to the loans to financial institutions
The Group's bank loans, overdraft facilities and factoring facility are secured borrowings.
Annual report 2021
90
Book value of assets pledged as collateral are as follows*:
2021
2020
Trade receivables
232 106
187 983
Inventories
19 391
43 258
Property, plant and equipment
6 009
8 033
Total book value of assets pledged as collateral:
257 505
239 275
The table excludes assets pledged as collateral for the overdraft facility in Sweden as this facility is
not utilised.
Covenants
The group's bank loans are subject to the following material covenants:
Equity share shall equal minimum 30 %.
NIBD/EBITDA ratio shall be maximum 2.5.
Note 16. Other non-current liabilites
Other non-current debt consists of the following:
note
2021
2020
Lease liabilities
9
22 204
26 278
Residual obligations
20 207
25 330
Deferred revenue
894
2 880
Total other non-current liabilities
43 305
54 488
Residual obligations are related to contracts with customers where the contract contains a buyback obligation.
The buyback price is fixed at contract inception.
Note 17. Current liabilities
Other current liabilities
note
2021
2020
Accrued personnel expenses (bonus, holiday pay etc.)
37 439
34 101
Accrued cost
16 975
10 113
Provision for onerous lease contracts
-
1 511
Deferred revenue
3
135 320
78 783
Prepaid revenue
15 343
21 672
Lease liabilities
9
10 631
14 172
Residual obligations
9 797
-
Other current liabilities
22
69 600
5 691
Total other current liabilities
295 106
166 044
Annual report 2021
91
Note 18. Critical estimates
The preparation of consolidated financial statements in conformity with IFRS requires the use of
certain critical accounting estimates. It also requires management to exercise its judgment in the
process of applying the Group’s accounting policies.
Changes in assumptions may have a significant impact on the consolidated financial statements in
the period the assumptions are changed. Estimates and judgments are continually evaluated and
are based on historical experience as adjusted for current market conditions and other factors.
Management believes the underlying assumptions are appropriate.
Management makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates, assumptions and
management judgments that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are outlined below.
Detailed information and judgement about each of these estimates in general and related to Covid-
19 specifically is included in other notes together with information about the basis of calculation for
each affected line item in the financial statements.
Impairment of intangible assets
Goodwill and customer relationship are recognised based on the acquisition method used to
account for business combinations. Customer relationships acquired in previous periods were
recognised at fair value at the acquisition date, have a finite useful life and are subsequently carried
at cost less accumulated amortisation and impairment losses.
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and
are tested annually for impairment, or more frequently if events or changes in circumstances
indicate that they might be impaired.
The recognised values of goodwill and customer relationships are material to the 2021 financial
statements as a whole, and it is important that the user of the Group’s financial statements
understands the existence of an inherent uncertainty pertaining to the recognised values.
Impairment test related to goodwill and customer relationships is further described in Note 19.
Goodwill
The Group tests whether goodwill has suffered any impairment on an annual basis. For the 2021 and
2020 reporting period, the recoverable amount of the cash generating units (CGUs) was determined
based on value-in-use calculations which require the use of assumptions. The calculations use cash
flow projections based on financial budgets approved by management covering a five-year period.
Cash flows beyond the five-year period are extrapolated using the estimated growth rates stated in
Note 19. These growth rates are consistent with forecasts included in economic outlook reports
specific to the area in which each CGU operates.
Customer relationships
Annual report 2021
92
The Group estimates the useful life of the customer relationship to be at least 5 years based on the
expected future revenue generated from the customer base. However, the actual useful life may be
shorter or longer than 5 years, depending on technical innovations, technical obsolescence of
existing products and competitor actions.
Recognition of income tax
The Group is subject to income taxes in mainly three jurisdictions, and significant estimates are
required in determining the provision for income taxes and related tax balances. There are many
transactions and calculations for which the ultimate tax determination is uncertain. The Group
recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes
will be due. Where the final tax outcome of these matters is different from the amounts that were
initially recorded, such differences will impact the current tax and deferred tax provisions.
The deferred tax assets recognised as at 31 December 2021 have been based on future profitability
assumptions, and the deferred tax assets are recognised to the extent that it is convincing evidence
that the tax assets will be realised.
The Group has at the balance sheet date tax losses carried forward which are not included in the
basis for the recognised deferred tax asset, as significant uncertainty pertaining to the possible
utilisation of these losses has been identified.
Annual report 2021
93
Note 19. Impairment of intangible assets
For impairment testing goodwill and customer relationships acquired through business
combinations are allocated to the CGUs as shown in the table below.
Goodwill
Customer
relationships
Technology
2021
2020
2021
2020
2021
2020
Norway
243 467
243 467
284
2 088
16 607
-
Sweden
195 445
234 335
63 171
93 728
14 679
16 853
Mytos
93 570
93 570
343
4 268
-
-
Poland
60 067
-
16 152
-
18 439
-
Total
592 549
571 372
79 950
100 084
49 725
16 853
Uncertainties
Covid-19
At time of release of the 2021 report it seems as if the global pandemic is coming to an end in the
geographies the group has operations. The pandemic has had a dual impact on Techstep’s
business and outlook.
The attention and demand for Group’s value proposition has been growing. The markets Techstep
operate in have moved in terms of maturity for the Group’s offerings. On the same time the Group
companies experience longer lead times and implementation processes for some of their
customers. Longer lead times has been a growing issue for the group hindering growth.
Liquidity has been impacted by the pandemic, even though the positive effect of the need for the
Group’s offering balances out some of the negative impacts in the market.
Overall Techstep has had a negative impact by the pandemic. It is managements assumption that
the markets boost in maturity caused by the pandemic will give a positive impact for managed
mobility in the years to come. Therefore, the impact on future cash flows caused by the pandemic is
assessed to be limited.
Cash generating units
Norway
: Comprise the companies Techstep Norway AS and Techstep Finance AS. All initial input into
Techstep Finance AS is created by Techstep Norway AS, and Techstep Finance AS is therefore not
considered to be a Cash generating unit by itself. The same assessment applies to Techstep Sweden
AB and Techstep Finance AB.
Annual report 2021
94
Sweden:
Comprise the companies Techstep Sweden, Techstep Finance and Optidev. The companies
are followed up as Sweden, and are in the process of being integrated with each other.
Mytos
: The company's offering "fakturakontroll" is a standalone cash generating unit. Mytos is
included in the segment "Norway".
Poland:
Comprise the companies Famoc S.A. and Famoc ltd.
Monitoring
Goodwill, Customer relationships and Technology are monitored by management at the level
defined in the table above. These CGU represent the lowest level within the Group at which the
goodwill and other intangible assets are monitored for internal management purposes.
Goodwill is initially recognised at the date of an acquisition of a business combination and
represents the excess of the consideration transferred, the amount of any non-controlling interest in
the acquiree and the fair value as at the acquisition date of any previous equity interest in the
acquiree over the fair value of the identifiable net assets acquired. Other intangible assets are
recognised at the fair value as at the acquisition date.
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and
are tested annually for impairment, or more frequently if events or changes in circumstances
indicate that they might be impaired. Impairment reviews are undertaken by calculating the
recoverable amount of the CGU containing goodwill and other intangible assets. The carrying
amount of the CGU is then compared to the recoverable amount of the CGU, which is the higher of
value in use and the fair value less costs of disposal. Any impairment is recognised immediately as
an expense and is not subsequently reversed.
The estimate of the recoverable amount of the CGU is largely based on management’s assumption
pertaining to the Group’s future cash flow projections.
For the 2021 and 2020 reporting period, the recoverable amount of the cash generating units (CGUs)
was determined based on value-in-use calculations which require the use of several key
assumptions. The calculations use cash flow projections based on financial budgets and prognoses
in the strategic plan approved by the Board of Directors covering a four-year period. Cash flows
beyond the four-year period are calculated using the estimated growth rates stated below.
Please refer to the table “Key assumptions for estimating future performance” for further details.
Key assumptions for estimating future performance
Norway
Sweden
Mytos
Poland
Annual report 2021
95
Material
actors that
affect the
cash flow
from
operations
The cash generating
unit provides the
customer with the
entire managed
mobility offering,
comprising of
Hardware, either
transactional or as-a-
service, third party
software within the
mobility space,
consultancy,
maintenance and
support, and all of the
groups own software.
All of which are offered
stand-alone or through
bundles. The CGU
retain cash flows from
the tradition hardware
business, all expecting
to decrease over the
next years.
The Cash flows are
based upon expected
future performance
using the 2022 budget
as a baseline. Free
cash flows are
expected to increase in
the years to come as
the organisation settles
and becomes more
effective.
The cash generating
unit provides the
market with a
comprehensive
service stack
comparable to the
Norwegian
counterpart. The
company is moving
towards offering a full
suite of managed
mobility, including the
Origo platform
adapted to the
Swedish market.
The Cash flows are
based upon expected
future performance
using the 2022 budget
as a baseline. Free
cash flows are
expected to increase
in the years to come
as the organisation
settles and becomes
more effective.
The CGU main
product
"fakturakontroll"
renders a stable
recurring cash flow
from operations.
The cash flow is
recycled into the
business to build the
organisation for
supporting the
managed mobility
offering for all group
companies,
specifically Origo, a
key component of
the Group’s Smart-
offerings.
The free cash flow is
expected to be
stable in the
following years.
The cash generating
unit is based in Poland
and delivers software
solutions for mobility
management to SMEs
and enterprises
throughout Europe.
The software has a
good fit with the
groups other offerings
and integration of the
product into the
Nordic offerings is
undertaken.
The CGU has stable
free cash flows.
.
The CGU operate in a
stable economy with a
high penetration of use
of advanced mobile
devices. The market
related to other service
offerings from the CGU
is expected to grow in
the future.
Third party
independent agencies
have reported an
expected compound
The CGU operate in a
stable economy with a
high penetration of
use of advanced
mobile devices. The
market related to
other service offerings
from the CGU is
expected to grow in
the future.
Third party
independent agencies
have reported an
The CGU operate in
a stable economy
with a high
penetration of use
of advanced mobile
devices where the
service offerings for
both private and
business purposes
increase at a high
rate. As users utilise
their devices both
for private and
business purposes,
The CGU operates
from Poland, however,
have customers in
many geographies
where both economic
and market conditions
differ.
A strength is that the
CGU is diversified,
however the risk profile
of the individual
customer varies.
Annual report 2021
96
average growth rate in
the markets the CGU
operates far above the
growth estimates used
in the impairment
assessment.
expected compound
average growth rate in
the markets the CGU
operates far above the
growth estimates used
in the impairment
assessment.
the offering's from
Mytos are highly
relevant.
Capital expenditure is
assumed to be equal
to depreciation in the
terminal year.
Capital expenditure is
assumed to be equal
to depreciation in the
terminal year.
Capital expenditure
is assumed to be
equal to
depreciation in the
terminal year.
Capital expenditure is
assumed to be equal
to depreciation in the
terminal year.
Main budget
and long
term
assumptions
The budget and long
term plan is based on
the continued
transition from old to
new revenue streams.
The budget for 2022 is
at the same level as
results delivered in
2021, however there is
an underlying shift
from old to new
revenue streams. There
is a risk that there is a
lag in the transition
and that the result
delivered will be lower.
The budget is a
building block in the
long-term strategy
plan, which has
ambition of an
increase in free cash
flow.
Refer to sensitivity
analysis below
regarding reductions in
free cash flows and
impact on impairment.
The budget and long
term plan in Sweden
underlying is based
the same value chains
as in Norway, where
investments related to
processes and
systems are taken in
2021. The systems,
products and
processes will be
rolled out in Sweden
and the group will
scale better on new
systems. The planned
changes in the CGU
will have a positive
impact on long term
financial performance.
The budget in Mytos
is based upon a
steady revenue
stream from the
"fakturakontroll"
product and thight
cost control.
The CGU is assumed
to deliver a steady
cash flow in the
foreseeable future.
The budget and long
term plan in the CGU is
related to the
integration in the
group, standardizing
the product offering
into the smart
packaging, and
growing sales through
direct and partner-
sales channels.
Annual report 2021
97
The calculations of the CGU carrying amount use cash flow projections are based on financial
budgets and forecasts approved by management covering a four-year period. From year five and
beyond, a terminal value is calculated.
Discount rates
"The pre-tax discount rate applied for the impairment testing is set at 11.9%. This rate of return is
calculated based on the weighted average of required rates of return on the Group’s equity and
debt (WACC) using the capital asset pricing model (CAPM).
The required rate of return on debt is estimated based on a long-term risk-free interest rate, to
which a premium is added to reflect the creditors' risk when lending funds to the Group. The discount
rate includes a small business premium (operational risk) and the expected future levels of inflation.
For impairment reviews performed at year end 2021 and 2020, these assumptions have been applied
consistently across the Group."
2021
2020
Equity ratio
42%
47%
Growth in terminal value
0.5 %
0.5 %
WACC
11.9 %
11.9 %
Sensitivity
A sensitivity analysis would result in the following impairment indications. The sensitivities are
applied in all years throughout the forecasting period.
Impact on impairment
Norway
Sweden
Mytos
Poland
10% decline in free cash flow
No impairment
No impairment
No impairment
No impairment
1 % increase in WACC
No impairment
No impairment
No impairment
No impairment
Annual report 2021
98
Note 20. Financial risk management
The Group's financial risk is related to credit risk, liquidity risk, currency risk and interest rate risk. The
Group's risk management aims to support value creation and ensure a solid financial platform,
through transparent and strategic management of both financial and operational risk factors.
Operational risk relates mainly to major projects, which are continuously reviewed by corporate
management.
The ongoing global pandemic has had a negative, but limited effect on the Group's financial risk.
The Group’s capital consists of net interest-bearing debt (NIBD) and equity:
2021
2020
Non-current interest-bearing borrowings
97 402
108 539
Current interest-bearing borrowings
74 548
85 502
Cash and cash equivalents*
50 350
27 203
NIBD
121 600
166 838
Group equity
555 586
563 451
Net gearing (NIBD/equity)
22%
30%
Undrawn credit facilities
72 081
25 054
A) Capital management
The Group’s capital structure's primary focus is to ensure sufficient free liquidity in the form of cash
and cash equivalents along with bank overdraft facilities to ensure that the Group can continually
service its obligations and at the same time being able to make strategic acquisitions.
B) Credit risk
Credit risk is the risk that customers are unable to settle their obligations as they mature. Credit risk is
considered part of the business risk and is included in ongoing operations. The Group has established
procedures for credit rating major private customers, and the risk that customers do not have the
financial means to meet their obligations is considered low. Historically, only minor losses have been
realised as a result of customers experiencing financial difficulties.
The customer base comprises many medium-sized customers, along with a few larger customers.
The customer portfolio is considered to be well diversified across industries, as well as private and
public customers. The risk level is considered satisfactory. The bulk of the Group's customers are
Norwegian and Swedish, which constitutes a geographic concentration of risk.
Annual report 2021
99
The ongoing pandemic has not materially impacted the credit risk of the Group. The exposure to high-
risk customers is limited. Relevant customers with a higher risk rating due to the pandemic are
followed closely to manage the risk.
No single customer represents 10% or more of trade receivables as at 31 December 2021 or as at 31
December 2020. No single customer represents 10% or more of the Group's revenues in 2021 or 2020.
The maximum credit exposure consists of the carrying value of receivables and cash and cash
equivalents. All receivables are due within one year. Normally, payment is 14 days after invoicing.
Provisions for losses on trade receivables are based on portfolio assessment of Trade receivables as
disclosed in note 13.
Historically, actual losses on trade receivables have been immaterial, as was also the case in 2021. It
is management’s assessment that The Group's overall credit risk is satisfactory. Please also refer to
Note 13, Trade receivables and other receivables.
C) Liquidity risk
Liquidity risk is the risk of not being able to pay the Group's financial obligations upon maturity. Liquidity
risk arises from a mismatch between cash flows from operations and financial commitments. Liquidity
budgets are prepared based on the Group's financial budgets. The budgets are prepared annually
and are updated with new forecasts throughout the year. Transforming from a transactional model to
a recurring revenue model, which by definition postpones incoming cash flows, puts a higher strain
on the liquidity position of the group. The Group's liquidity is closely monitored by management and
the board of directors. If the need arise, the Group have access to multiple funding sources to balance
the transformation.
The ongoing pandemic has not materially impacted the Group’s ability to pay its financial obligations,
nor limited the access to capital.
For details regarding the Group's interest-bearing borrowings refer to Note 15 Borrowings.
D) Currency risk
The material part of the Group's operations are conducted in the Nordics. The Group is thus not
materially affected by operational currency fluctuations other than fluctuations between NOK and SEK.
The bulk of the Group's goods and services is billed in NOK or SEK as appropriate. To a minor extent,
some solutions revenue and expenses are invoiced in PLN, EUR and USD. The Group does not hedge
cash flows in foreign currencies. The Group has low cash holdings, trade receivables and trade
payables in currencies other than NOK and SEK.
Annual report 2021
100
Therefore, consequences on the Group's profit and equity from changes in exchange rates between
NOK and foreign currencies, and SEK and foreign currencies is limited and deemed acceptable. There
is limited trade between Norway and Sweden and currency risk is considered to be low overall. Group
values related to foreign operations are subject to currency fluctuations. As such, there will be
variations in the financial statement line item exchange differences on translating foreign operations
in the consolidated statement of comprehensive income.
E) Interest rate risk
Interest rate changes have only a marginal direct effect on consolidated operating income and cash
flows from operating activities. The Group's interest rate risk is related to floating interest rates on bank
accounts and deposits, in addition to floating rate debt in credit institutions. The Group has no fixed-
rate deposits or debt, and is therefore not exposed to fair value interest rate risk. The Group assesses
its capital structure on an ongoing basis.
F) Categories of financial instruments
This section explains the judgements and estimates made in determining the fair values of the
financial instruments that are recognised and measured at fair value in the financial statements. To
provide an indication about the reliability of the inputs used in determining fair value, the Group has
classified its financial instruments into the three levels prescribed under the accounting standards. An
explanation of each level is included in note 1 accounting principles.
The fair value of all financial assets and financial liabilities are assessed to, for all material purposes,
be equal to book value. To assess the fair value of shares and investments held by the Group
management assesses the underlying values in the companies where the Group holds shares. The
change in fair value is accounted for over profit and loss.
Annual report 2021
101
The Group has the following categories of financial
instruments as at 31 December 2021:
Financial
assets at fair
value through
profit or loss
Financial
assets at
amortised
cost
Total
Level in fair
value
hierarchy
ASSETS
Shares and investments
590
0
590
3
Other non-current assets
0
1 224
1 224
Trade receivables
0
230 229
230 229
Other receivables
0
21 331
21 331
Cash and cash equivalents
0
50 350
50 350
Total assets
590
303 134
303 724
Financial
liabilities at
fair value
through profit
or loss
Financial
liabilities at
amortised
cost
Total
Level in fair
value
hierarchy
LIABILITIES
Non-current interest-bearing debt
0
97 402
97 402
Non-current lease liabilities
0
22 204
22 204
Non-current repurchase obligation
0
20 314
20 314
Other non-current debt
0
787
787
Current interest-bearing debt
0
74 548
74 548
Trade payables
0
193 833
193 833
Tax payable
0
653
653
Public duties
0
39 577
39 577
Current lease liabilities
0
10 631
10 631
Other current liabilities
0
64 211
64 211
Total liabilities
0
524 160
524 160
The Group has the following categories of financial
instruments as at 31 December 2020:
Financial
assets at fair
value through
profit or loss
Financial
assets at
amortised
cost
Total
Level in fair
value
hierarchy
ASSETS
Shares and investments
44
0
44
3
Other non-current assets
0
169
169
Trade receivables
0
203 083
203 083
Other receivables
0
20 196
20 196
Cash and cash equivalents
0
27 203
27 203
Total assets
44
250 651
250 695
Financial
liabilities at
fair value
Financial
liabilities at
amortised
cost
Total
Level in fair
value
hierarchy
Annual report 2021
102
through profit
or loss
LIABILITIES
Non-current interest-bearing debt
0
108 539
108 539
Non-current lease liabilities
0
26 278
26 278
Non-current repurchase obligation
0
25 330
25 330
Other non-current debt
0
2 880
2 880
Current interest-bearing debt
0
85 502
85 502
Trade payables
0
154 442
154 442
Tax payable
0
-750
-750
Public duties
0
39 756
39 756
Current lease liabilities
0
14 172
14 172
Other current liabilities
0
65 648
65 648
Total liabilities
0
521 797
521 797
Note 21. Legal disputes and contingencies
The Group has no ongoing legal disputes.
Annual report 2021
103
Note 22. Changes in Group structure and business combinations
2021
Divestment
Techstep divested its Voice & Contact Center business units ("VCC") in Norway and Sweden for a
total combined consideration of NOK 65.7 million, settled in cash. The proceeds were received at the
end of 2021, while the transaction closed 3 january 2022.
In the 2021 financial accounts, the proceeds of NOK 65.7 million are accounted for as other short term
debt (NOK 65.7 million) on the line item Other current liabilities in the statement of financial position.
The amount was used to reduce the group’s bank overdraft. The bank overdraft is included in the line
item Current interest-bearing liabilities. In relation to the transition the group has identified assets
and liabilities of the net amount NOK 24.5 million which is classified as held for sale in the statement
of financial position. Assets classified as held for sale is reclassified from Goodwill (NOK 24.1 million)
and net other assets (NOK 0.4 million).
In 2022 the group will recognise a gain from the divestment amounting to NOK 40.2 million in the
consolidated income statement. The remaining NOK 24.5 million will be recognised towards the
assets held for sale.
Acquisition
Techstep acquired 100 % of the shares in Famoc S.A, Famoc Software Ltd. And Santa Rita Private
Venture 1 July 2021. The transaction was settled partly in 3 679 211 consideration shares in Techstep
ASA. At the time completion, this corresponded to NOK 15.8 million.
The tables below summarise the consideration transferred and the amounts recognised for assets
acquired and liabilities assumed after the business combinations:
Consideration and amount recognised
Famoc
Total
Cash payments
82 444
82 444
Consideration shares
15 821
15 821
Seller credit
11 976
11 976
Total
110 240
110 240
Net assets
Famoc
Total
Intangible assets
3 271
3 271
Property plant and equipment
106
106
Right of use assets
845
845
Other non-current assets
628
628
Trade and other receivables
7 846
7 846
Cash and cash equivalents
8 473
8 473
Other non-current liabilities
-2 244
-2 244
Current liabilities
-1 779
-1 779
Net assets
17 146
17 146
Excess value
93 094
93 094
Purchase price allocation
Famoc
Total
Technology
17 150
17 150
Annual report 2021
104
Customer relations
18 735
18 735
Deferred tax
-6 844
-6 844
Goodwill
64 052
0
Total
93 094
93 094
The goodwill of NOK 64.1 million relates to the know how within the mobility space. The acquired
company broadens the Group's product offering. There are synergies with existing Group companies
by cross selling of products. None of the goodwill recognised is expected to be deductible for income
tax purposes. The business combinations are carried out as part of the Group's growth strategy.
The companies acquired in business combinations completed through purchase of shares have
since the acquisition date contributed NOK 14.6 million to operating revenues and NOK 1.2 million to
consolidated net profit before tax. If the acquisition date of all business combinations completed
through purchase of shares was as at 1 January 2021, the operating revenues of the Group would
have increased by NOK 31.5 million and the effect on the consolidated net profit before tax would
have been NOK 2.2 million.
2020
In 2020, Techstep invested NOK 73.2 million in cash (net of cash acquired NOK 61.4 million) related to
the acquisition of subsidiaries and businesses (business combinations). Furthermore, the Group
issued consideration shares amounting to NOK 107.6 million in 2020. In addition, seller credits
amounting to NOK 74.0 million have been recognised. All investments have been accounted for as
business combinations.
Techstep acquired 100 % of the shares in Optidev AB 1 October 2020. The transaction was settled partly
by 19,744,177 consideration shares in Techstep ASA. At the time of completion, this corresponded to
NOK 103.7 million.
On 18 December 2020 Techstep acquired 100 % of the shares in eConnectivity AB. The transaction was
settled partly in 755,958 consideration shares in Techstep ASA. At the time of completion this
corresponded to NOK 3.9 million."
Acquisition-related costs amounting to NOK 7.0 million are recognised in the consolidated income
statement in the line item Other expenses.
The tables below summarise the consideration transferred and the amounts recognised for assets
acquired and liabilities assumed on the date of respective business combinations:
Consideration and amount recognised
Optidev
eConnectivity
Total
Cash payments
69 706
3 893
73 599
Consideration shares
103 657
3 893
107 550
Seller credit
70 092
3 893
73 985
Annual report 2021
105
Total
243 455
11 680
255 135
Net assets
Optidev
eConnectivity
Total
Intangible assets
1 829
0
1 829
Property plant and equipment
43 052
325
43 377
Other non-current assets
38
0
38
Trade and other receivables
50 040
3 772
53 812
Cash and cash equivalents
11 110
299
11 409
Deferred tax liabilities
3 118
0
3 118
Other non-current liabilities
19 949
153
20 101
Current liabilities
69 487
3 664
73 151
Net assets
42 268
580
42 848
Excess value
201 187
11 100
212 287
Purchase price allocation
Optidev
eConnectivity
Total
Technology
17 683
0
17 683
Customer relations
56 379
5 464
61 843
Customer contracts
9 882
0
9 882
Deferred tax
-19 965
-1 126
21 091
Goodwill
137 208
6 761
143 969
Total
201 187
11 100
212 287
The goodwill of NOK 144.0 million relates to the know-how within the mobility space. The acquired
companies broaden the Group's scope on Managed mobility in specific verticals. There are synergies
with existing Group companies by cross selling of products. None of the goodwill recognised is
expected to be deductible for income tax purposes. The business combinations are carried out as part
of the Group's growth strategy.
The companies acquired in business combinations completed through purchase of shares have since
the acquisition dates contributed NOK 70.8 million to operating revenues and NOK 4.9 million to
consolidated net profit. If the acquisition date of all business combinations completed through
purchase of shares was as at 1 January 2020, the operating revenues of the Group would have
increased by NOK 184.0 million and the effect on the consolidated net profit would have been positive
NOK 21.0 million.
Note 23. Related parties transactions
The following are considered related parties to the Group:
All the members of the Board of Directors and Group management, including close family members,
as defined by the Norwegian Accounting Act and associated regulations.
Annual report 2021
106
The following companies are considered as related parties to the Group during 2020 and 2021:
Company
Relationship
Role
Crayon Holding ASA and
subsidiaries
Jens Rugseth
Board member (Chairman of the board until
may 2021)
Stobor Invest AB
Åke Fredrik
Logenius
Chief operation officer
The Group has recognised a gain of NOK 8.0 million related to the sale of the IT division to Crayon in
2020. Refer to note 6 for details.
Consolidated income statement
Revenue from
Expenses to
2021
2020
2021
2020
Crayon
678
2 641
2 534
6 823
Stobor Invest AB*
-
-
2 431
608
Receivables
Payables
Balance as at 31 December
2021
2020
2021
2020
Crayon
199
-
247
208
Stobor Invest AB*
-
-
43 777
-
*Stobor Invest AB is 50% owned by COO Åke Fredrik Logenius. Payables to Stobor Invest AB is related to
settlement for Techstep's acquisition of Optidev AB in 2020.
All transactions with related parties are carried out at the arm’s length principle.
Note 24. Earnings per share
2021
2020
Weighted average number of shares outstanding
188 677 089
182 646 564
Weighted average number of shares outstanding (Diluted)
191 369 892
185 986 434
Profit attributable to owners of the parent
(103 050)
(24 746)
Earnings per share
(0.55)
(0.15)
Earnings per share (Diluted)
(0.55)
(0.15)
The Group has issued stock options to some members of the executive management Group and other
key employees, refer to note 28 Remuneration to the board and executive management for details.
Annual report 2021
107
For details regarding the issuance of shares in 2021 and 2020, refer to note 25 Shares, capital structure
and shareholders.
Annual report 2021
108
Note 25. Shares, capital structure and shareholders
Share capital
The company’s share capital as at 31 December 2021 was NOK 209,629,830 based on 209,629,830
ordinary shares with a par value of NOK 1.00.
Each share gives the right to one vote at the company’s general meeting. At the date of this report,
Techstep holds 1,914 treasury shares.
The development in share capital and other paid-in equity is set out in the consolidated statement of
changes in equity.
Development in the number of issued and outstanding shares:
Shares outstanding
Treasury shares*
Issued
Number of shares 1 January 2021
183 295 472
1 914
183 295 472
Employee share purchase program
432 925
432 925
Private placement
22 222 222
22 222 222
Consideration shares
3 679 211
3 679 211
Number of shares 31 December 2021
209 629 830
1 914
209 629 830
Number of shares 1 January 2020
162 795 337
1 914
162 795 337
Consideration shares
20 500 135
20 500 135
Number of shares 31 December 2020
183 295 472
1 914
183 295 472
*Treasury shares are included in the column Other equity in the statement of changes in equity.
2021
Techstep has issued considerations shares in relation to the following:
●
432 925 new shares related to employee share purchase programme
●
22 222 222 new shares in relation to private placement
●
3 679 211 new shares related to the Famoc acquisition
2020
Techstep issued considerations shares in relation to the following:
●
19 744 177 new shares related to the Optidev acquisition
●
755 958 new shares related to the eConnectivity acquisition.
Annual report 2021
109
As at 30 December 2021, Techstep’s 20 largest shareholders were as follows:
Shareholder
Number of
shares
Ownership
DATUM AS
1
36 615 646
17.5%
KARBON INVEST AS
2
21 804 349
10.4%
MIDDELBORT INVEST AS
20 414 507
9.7%
SWEDBANK AB
18 965 827
9.0%
DNB NOR BANK ASA
9 287 800
4.4%
VERDIPAPIRFONDET DNB SMB
7 549 773
3.6%
CIPRIANO AS
4 538 498
2.2%
ALUNDO INVEST AS
4 000 000
1.9%
SAXO BANK A/S
3 047 315
1.5%
TORSTEIN TVENGE
3 000 000
1.4%
TIGERSTADEN AS
3 000 000
1.4%
BRIDGE CAPITAL AS
2 513 317
1.2%
NORDHOLMEN AS
2 075 608
1.0%
ADRIAN AS
2 038 851
1.0%
GIMLE INVEST AS
2 020 077
1.0%
UNIFIED AS
1 969 264
0.9%
PIKA HOLDING AS
1 956 512
0.9%
NORDIALOG ENSJØ AS
1 946 253
0.9%
SABINUM AS
1 802 813
0.9%
ZONO HOLDING AS³
1 801 938
0.9%
Total number owned by top 20
150 318 348
71.7 %
Total number of shares
209 629 830
100.0
%
1)
Datum AS is controlled by deputy board member Jan Haudemann-Andersen. Board
member Harald Arnet is the CEO and board member in Datum AS.
2)
Karbon Invest AS is owned by chairman of the board Jens Rugseth
3)
Zono Holding AS is owned by Duo Jag AS 0.93%.
Idekapital AS, which is controlled by board member Anders Brandt, owns 1,802,801 shares in Techstep
ASA.
Duo Jag AS, which is partly owned by board member Ingrid Leisner, owns 601.562 shares in Techstep
ASA.
Share option grant
At the Annual General meeting 22 June 2020, 4,269.883 share options (2.5% of existing shares) were
granted under the 2020 programme. The share options became exercisable (vested) on 22 June 2021
and must be exercised by 22 June 2024. The exercise price is NOK 3.00.
Annual report 2021
110
At the Annual General Meeting 22 April 2021, 4,593,307 share options (2.5% of existing shares) were
granted under the 2021 programme. The share options vest 1/3 each year from 22 April 2022 and are
fully vested on 22 April 2024. The options must be exercised by 22 April 2026. The exercise price is NOK
5.80.
The exercise price will be adjusted for any dividends paid or accrued before exercise. Each option
holder's aggregated gross profit from exercising the options shall be limited to the amount equal to 3
years’ gross base salary at the time of exercising the options. The exercise of share options can be
settled in cash, and/or with new or existing treasury shares.
CEO Børge Astrup was awarded 4,500,000 share options at an extraordinary general meeting held 22
September 2021. The options vest in three tranches with 1/3 per tranche, on 1 September 2024, 2025
and 2026. The exercise period is two years from the applicable Vesting Date. The strike price is NOK
4.75, NOK 5.75 and NOK 6.75 for the respective tranches. If the average, weighted Techstep share price
for seven calendar days exceeds NOK 30 per share, then the Company may require that all vested
options are exercised by Børge Astrup.
The Board intends to propose the adoption of a similar option program in 2022. In such case, the
number of share options to be granted may be up to 2.5% of shares outstanding, with the options
granted to the CEO in September 2021 being included.
As at 31 December 2021, the total number of outstanding share options was 8,746,070 (4.2%).
Overview of share options held by members of the management group as at 31 December 2021:
Name
Position
Shares
Share Options
Børge Astrup
CEO
178 396
4 500 000
Marius Drefvelin
CFO
63 364
813 976
Mads Vårdal
Chief Product Officer
5 019
1 156 726
Erik Haugen
Chief Transformation Officer
4 672
1 156 726
Fredrik Logenius
Chief Product Officer
9 469 399
229 660
Bartosz Leoszewski
Chief Technology Officer
312 628
Gunnar Aasen
Chief Revenue Officer
-
Ellen Skaarnæs
Chief People Officer
41 411
Annual report 2021
111
Note 26. Group structure
As at 31 December 2021 the Group consisted of the following companies:
Company
Location
Segment
Ownership
Techstep ASA
Oslo
Headquarters
100%
Techstep Norway AS
Oslo
Norway
100%
Mytos AS
Oslo
Norway
100%
Techstep Finance AS
Oslo
Norway
80%
Techstep Holding AB
Karlstad
Sweden
100%
Techstep Sweden AB
Karlstad
Sweden
100%
Techstep Finance AB
Karlstad
Sweden
80%
Mytos AB
Stockholm
Sweden
100%
Optidev AB
Borås
Sweden
100%
Techstep APS
Denmark
Denmark
100%
Optidev APS
Vejle
Denmark
100%
Famoc S.A
Gdansk
Poland
100%
Famoc Software Ltd.
Cork
Poland
100%
Santa Rita Private Venture
Gdansk
Poland
100%
Note 27. Remuneration to auditor
Auditor remuneration
(amounts in NOK 1000)
2021
(Amounts in NOK 1000)
Audit
services
Other
attestation
services
Tax
advisory
services
Other non-
audit
services
Total
BDO
2 017
335
-
-
2 352
Other
554
-
-
-
554
Total
2 571
335
-
-
2 906
2020
(Amounts in NOK 1000)
Audit
services
Other
attestation
services
Tax
advisory
services
Other non-
audit
services
Total
BDO
1 667
109
-
-
1 776
Other
279
-
-
-
279
Total
1 946
109
-
-
2 055
Annual report 2021
112
Note 28. Remuneration to the board and executive management
Total remuneration to the Board of Directors
Name
Position
2021
2020
Jens Rugseth
Chairman
500
500
Harald Arnet
Member
83
-
Ingrid Leisner
Member, Chairman Of the audit
committee
300
300
Anders Brandt
Member
250
250
Melissa Mullholland
Member, Member of the audit
committee
207
-
Einar J Greve
Deputy Chairman
125
400
Toril Nag
Member, Member of the audit
committee
78
285
Total Remuneration
1 543
1 735
Total remuneration to executive management
Name of director
Position
year
Fixed remuneration
Variabl
e
remune
ration
Options
progra
m*
Pension
expense
Total
remuner
ation
Proportion
of fixed and
variable
remunerati
on
Base
Salary
Fees
Fringe
benefit
s
One-
year
variabl
e
Børge Astrup
1
Chief Executive
Officer
2021
1 250
-
6
417
787
47
0.5/0.5
Jens Haviken
2
Chief Executive
Officer
2021
2 697
1 221
11
-
382
114
0.9/0.1
Jens Haviken
Chief Executive
Officer
2020
2 700
-
-
459
620
115
0.7/0.3
Marius Drefvelin
Chief Financial
Officer
2021
2 344
-
57
315
305
111
0.8/0.2
Marius Drefvelin
Chief Financial
Officer
2020
2 233
-
460
395
128
0.7/0.3
Mads Vårdal
Chief Product
Officer
2021
1 683
-
14
269
685
110
0.6/0.4
Annual report 2021
113
Mads Vårdal
Chief Product
Officer
2020
1 625
-
315
288
108
0.7/0.3
Erik Haugen
3
Chief
Transformation
Officer
2021
1 389
-
14
265
685
112
0.6/0.4
Erik Haugen
Chief Commercial
Officer
2020
1 291
-
300
268
112
0.7/0.3
Fredrik Logenius
4
Chief Operating
Officer
2021
965
-
80
191
183
24
0.7/0.3
Fredrik Logenius
Managing director
Sweden
2020
226
-
80
-
-
-
1/0
Bartosz
Leoszewski
5
Chief Technology
Officer
2021
480
-
-
127
-
-
0.8/0.2
Ellen Skarnæs
6
Chief People Officer
2021
1 062
-
16
117
-
81
0.8/0.2
Gunnar Aasen
7
Chief Revenue
Officer
2021
494
-
4
78
-
39
0.8/0.2
Inge Paulsen
8
Managing director
Norway
2021
1 821
1 312
7
-
210
63
0.9/0.1
Inge Paulsen
Managing director
Norway
2020
1 735
-
-
245
268
43
0.8/0.2
Bartek Regerqvist
Managing director
Sweden
2020
1 052
-
-
-
38
299
0.8/0.2
1
Mr. Astrup was appointed as CEO 1 July 2021.
2
months’ salary in addition to pay during the six-month notice period. The severance package is not
reimbursed at full as at the balance sheet date.
3
Mr. Haugen was appointed as Chief Transformation Officer in Q4 2021. Prior to the appointment he
served as Chief Commercial Officer.
4
served as Managing Director for Optidev AB and Techstep Sweden AB.
5
served as Managing Director in Famoc (Poland). The remuneration presented in the table above
represents Mr. Leoszewksi's remuneration in the Techstep ownership period.
6
Head of Human Resources.
7
Annual report 2021
114
8
presented under the column "Fees".
Criteria for bonus to management are based on group and individual performance.
*Accounted for as cost in the consolidated income statement, not gain on options for the
beneficiary.
Shares and Share options 2021 program
Name
Børge Astrup
Position
The main conditions of
share option plans
Plan
2021
Specification of plan
1
1
1
Performance period
01.09.2021 -
01.09.2024
01.09.2021 -
01.09.2025
01.09.2021 -
01.09.2026
Award date
01.09.2021
01.09.2021
01.09.2021
Vesting date
01.09.2024
01.09.2025
01.09.2026
End of holding period
01.09.2026
01.09.2027
01.09.2028
Exercise period
01.09.2024 -
01.09.2026
01.09.2025 -
01.09.2027
01.09.2026 -
01.09.2028
Strike price of the share
4.75
5.75
6.75
Fair value
1.79
1.86
2.53
Information
regarding
the reported
financial
year
Opening
balance
Share options awarded at
the beginning of the year
-
-
-
During
the year
Share options awarded
1 500 000
1 500 000
1 500 000
Share options vested
-
-
-
Closing
balance
Share options subject to
performance condition
-
-
-
Share options awarded
and unvested
1 500 000
1 500 000
1 500 000
Share options subject to a
holding period
-
-
-
Annual report 2021
115
Name
Jens Haviken
Position
The main conditions of
share option plans
Plan
2021
2020
Specification of plan
2
2
2
2
Performance period
22.04.2021 -
22.04.2022
22.04.2021 -
22.04.2023
22.04.2021 -
22.04.2024
02.06.2020 -
22.06.2021
Award date
22.04.2021
22.04.2021
22.04.2021
02.06.2020
Vesting date
22.04.2022
22.04.2023
22.04.2024
22.06.2021
End of holding period
22.04.2024
22.04.2025
22.04.2026
22.06.2024
Exercise period
22.04.2022 -
22.04.2024
22.04.2023 -
22.04.2025
22.04.2024 -
22.04.2026
22.06.2021 -
22.06.2024
Strike price of the share
5.80
5.80
5.80
3.00
Fair value
0.79
1.67
2.01
2.30
Information
regarding
the reported
financial
year
Opening
balance
Share options awarded at
the beginning of the year
-
-
-
1 017 471
During
the year
Share options awarded
344 490
344 491
344 491
-
Share options vested
-
-
-
1 017 471
Closing
balance
Share options subject to
performance condition
-
-
-
-
Share options awarded
and unvested
-
-
-
-
Share options subject to a
holding period
-
-
-
-
Name
Marius Drefvelin
Position
Chief Financial Officer
The main conditions of
share option plans
Plan
2021
2020
Specification of plan
2
2
2
2
Performance period
22.04.2021 -
22.04.2022
22.04.2021 -
22.04.2023
22.04.2021 -
22.04.2024
02.06.2020 -
22.06.2021
Annual report 2021
116
Award date
22.04.2021
22.04.2021
22.04.2021
02.06.2020
Vesting date
22.04.2022
22.04.2023
22.04.2024
22.06.2021
End of holding period
22.04.2024
22.04.2025
22.04.2026
22.06.2024
Exercise period
22.04.2022 -
22.04.2024
22.04.2023 -
22.04.2025
22.04.2024 -
22.04.2026
22.06.2021 -
22.06.2024
Strike price of the share
5.80
5.80
5.80
3.00
Fair value
0.79
1.67
2.01
2.30
Information
regarding
the reported
financial
year
Opening
balance
Share options awarded at
the beginning of the year
-
-
-
813 976
During
the year
Share options awarded
283 247
283 248
283 248
-
Share options vested
-
-
-
813 976
Closing
balance
Share options subject to
performance condition
-
-
-
-
Share options awarded
and unvested
-
-
-
-
Share options subject to a
holding period
-
-
-
813 976
Name
Mads Vårdal
Position
Chief Product Officer
The main conditions of
share option plans
Plan
2021
2020
Specification of plan
2
2
2
2
Performance period
22.04.2021 -
22.04.2022
22.04.2021 -
22.04.2023
22.04.2021 -
22.04.2024
02.06.2020 -
22.06.2021
Award date
22.04.2021
22.04.2021
22.04.2021
02.06.2020
Vesting date
22.04.2022
22.04.2023
22.04.2024
22.06.2021
End of holding period
22.04.2024
22.04.2025
22.04.2026
22.06.2024
Exercise period
22.04.2022 -
22.04.2024
22.04.2023 -
22.04.2025
22.04.2024 -
22.04.2026
22.06.2021 -
22.06.2024
Strike price of the share
5.80
5.80
5.80
3.00
Fair value
0.79
1.67
2.01
2.30
Annual report 2021
117
Information
regarding
the reported
financial
year
Opening
balance
Share options awarded at
the beginning of the year
-
-
-
559 609
During
the year
Share options awarded
199 039
199 039
199 039
-
Share options vested
-
-
-
559 609
Closing
balance
Share options subject to
performance condition
-
-
-
-
Share options awarded
and unvested
199 039
199 039
199 039
-
Share options subject to a
holding period
-
-
-
559 609
Name
Erik Haugen
Position
Chief Transformation Officer
The main conditions of
share option plans
Plan
2021
2020
Specification of plan
2
2
2
2
Performance period
22.04.2021 -
22.04.2022
22.04.2021 -
22.04.2023
22.04.2021 -
22.04.2024
02.06.2020 -
22.06.2021
Award date
22.04.2021
22.04.2021
22.04.2021
02.06.2020
Vesting date
22.04.2022
22.04.2023
22.04.2024
22.06.2021
End of holding period
22.04.2024
22.04.2025
22.04.2026
22.06.2024
Exercise period
22.04.2022 -
22.04.2024
22.04.2023 -
22.04.2025
22.04.2024 -
22.04.2026
22.06.2021 -
22.06.2024
Strike price of the share
5.80
5.80
5.80
3.00
Fair value
0.79
1.67
2.01
2.30
Information
regarding
the reported
financial
year
Opening
balance
Share options awarded at
the beginning of the year
-
-
-
559 609
During
the year
Share options awarded
199 039
199 039
199 039
-
Share options vested
-
-
-
559 609
Closing
balance
Share options subject to
performance condition
-
-
-
-
Annual report 2021
118
Share options awarded
and unvested
199 039
199 039
199 039
-
Share options subject to a
holding period
-
-
-
559 609
Name
Fredrik Logenius
Position
Chief Operations Officer
The main conditions of
share option plans
Plan
2021
Specification of plan
2
2
2
Performance period
22.04.2021 -
22.04.2022
22.04.2021 -
22.04.2023
22.04.2021 -
22.04.2024
Award date
22.04.2021
22.04.2021
22.04.2021
Vesting date
22.04.2022
22.04.2023
22.04.2024
End of holding period
22.04.2024
22.04.2025
22.04.2026
Exercise period
22.04.2022 -
22.04.2024
22.04.2023 -
22.04.2025
22.04.2024 -
22.04.2026
Strike price of the share
5.80
5.80
5.80
Fair value
0.79
1.67
2.01
Information
regarding
the reported
financial
year
Opening
balance
Share options awarded at
the beginning of the year
-
-
-
During
the year
Share options awarded
76 553
76 553
76 554
Share options vested
-
-
-
Closing
balance
Share options subject to
performance condition
-
-
-
Share options awarded
and unvested
76 553
76 553
76 554
Share options subject to a
holding period
-
-
-
Annual report 2021
119
Name
Inge Paulsen
Position
Managing Director Norway
The main conditions of
share option plans
Plan
2021
2020
Specification of plan
2
2
2
2
Performance period
22.04.2021 -
22.04.2022
22.04.2021 -
22.04.2023
22.04.2021 -
22.04.2024
02.06.2020 -
22.06.2021
Award date
22.04.2021
22.04.2021
22.04.2021
02.06.2020
Vesting date
22.04.2022
22.04.2023
22.04.2024
22.06.2021
End of holding period
22.04.2024
22.04.2025
22.04.2026
22.06.2024
Exercise period
22.04.2022 -
22.04.2024
22.04.2023 -
22.04.2025
22.04.2024 -
22.04.2026
22.06.2021 -
22.06.2024
Strike price of the share
5.80
5.80
5.80
3.00
Fair value
0.79
1.67
2.01
2.30
Information
regarding
the reported
financial
year
Opening
balance
Share options awarded at
the beginning of the year
-
-
-
559 609
During
the year
Share options awarded
199 039
199 039
199 039
-
Share options vested
-
-
-
559 609
Closing
balance
Share options subject to
performance condition
-
-
-
-
Share options awarded
and unvested
-
-
-
-
Share options subject to a
holding period
-
-
-
-
Specification of plan 1:
If at any time the average, weighted share price for the previous 7 calendar days of the exceeds NOK
30 per share, the Company may force-call all the Options. If the call option is used the plan holder
shall be obliged to pay the Strike Prices, or may choose to forfeit the Options (fully or partially)
without any compensation, rather than exercising them.
All options are granted for no consideration.
Specification of plan 2:
Annual report 2021
120
Each option holder's aggregated gross profit from exercising the options shall be limited to the
amount equal to three years' gross base salary at the time of exercising the options. The company is
entitled to settle the exercise of share options in cash, and/or with new or existing treasury shares.
All options are granted for no consideration.
There are 0.9 million share options granted to key personnel under plan 2 who are not a part of
executive management. The Vesting dates and exercise prices are equal to the executive
management’s options.
Fair value of options granted
The fair value at grant date is independently determined per tranche using the Black Scholes Model.
"As option gains are taxed with personal income tax (higher) and gains on ordinary shares are taxed
with capital gains tax (lower), the assessment is that the participants will exercise early. Hence,
exercise is assessed to occur before full lifetime has lapsed. The options are “non-transferable” it is
also likely that participants will tend to realise the gain on the options by exercising early as soon as
exercise is possible.
Due to the arguments above, it is management’s best estimate that using the term from the grant
date until 1 years after vesting date as estimated lifetime on the options is a fair assumption".
The expected volatility of the company’s share price is 64 %. To estimate the volatility of the Techstep
share, the Company’s historic volatility over the expected lifetime of the options has been used.
The risk-free interest rate used in the B&S model is the zero-coupon government bond issues of the
country in whose currency the exercise price is expressed, with the term equal to the expected term
of the option being valued. Since the exercise price is expressed in Norwegian Krone, the “Norges
Bank Statskasseveksler” and
“Obligasjoner”-rate is used as input. The interest rates used for the options with term structures
outside of the quoted terms of Norges Banks Interest rates are calculated with the use of a linear
interpolation between the two closest quoted rates.
Annual report 2021
121
Comparative information on the change of remuneration and company performance
Annual Change
RFY-4 vs
RFY-5
RFY-3 vs
RFY-4
RFY-2 vs
RFY-3
RFY-1 vs
RFY-2
RFY vs
RFY-1
Information regarding the
RFY
Director's remuneration
Børge Astrup, CEO
-
-
-
-
3 804
Appointed CEO 1 July 2021
Jens Haviken, CEO
-
4 378
(429)
(55)
-
Resigned as CEO 1 July 2021
Gaute Engbakk, CEO
858
(16)
-
-
Marius Drefvelin, CFO
2 859
412
140
(195)
(83)
Mads Vårdal, Chief Product Officer
1 921
(466)
(172)
(257)
426
Erik Haugen, Chief Transformation Officer
2 724
(586)
(260)
93
495
Fredrik Logenius, Chief Operations Officer
-
-
-
904
539
Bartosz Leoszewski, Chief Technology
Officer
-
-
-
-
1 214
Ellen Skarnæs, Chief People Officer
-
-
-
-
1 276
Gunnar Aasen, Chief Revenue Officer
-
-
-
-
2 107
Inge Paulsen, MD Norway
1 843
415
71
(38)
1 123
Resigned in September 2021
Bartek Regerqvist, MD Norway
-
1 669
235
(392)
Company performance
Net profit
(2 977)
69 006
(85 658)
40 772
(75 963)
Average remuneration on a full-time
equivalent of employees
Employees of the company*
1 049
475
(183)
(279)
304
Employees of the group
(197)
190
13
(154)
96
*The employees of the company represents the executive management team.
The change in RFY-4 vs RFY-5 is related to an increase in the headcount in the executive
management team.
All remuneration is annualized if the executive was not emplyeed the whole year.
The position is the current or last position held by the executive.
The remuneration includes options accounted for as cost in the consolidated income statement, not
gain on options for the beneficiary.
Annual report 2021
122
Note 29. Events after the reporting period
On 3 January 2022 Techstep closed the divestment of the Voice and Contact Center, refer to note 22
for details.
On 9 February 2022 Techstep ASA entered and completed an agreement to acquire the remaining
20% of the shares in Techstep Finance AS from Bridge Capital AS for a cash purchase price of NOK 9
million. Following the completion, Techstep owns 100% of the shares in Techstep Finance AS.
In February 2022, Russia invaded Ukraine. Techstep monitors the consequences of the Russian
invasion and subsequent sanctions. Techstep has no activities in or exposure to Russia, Belarus, or
Ukraine. Indirect consequences may occur in case suppliers are affected, in which the potential
escalation of component shortages represent the largest uncertainty.
There are no other subsequent events to report after the reporting period.
Annual report 2021
123
Techstep ASA - Income statement
(Amounts in NOK 1000)
Notes
2021
2020
Other revenue
37 148
6 069
Total revenue
37 148
6 069
Salaries and personnel costs
2
-24 549
-15 457
Other operational costs
2, 3
-87 220
-9 183
Depreciation
-6
-30
Other income
8
-
4 859
Other expenses
8
-9 716
-8 687
Operating profit (loss)
-84 344
-22 428
Financial income
4
76 543
23 245
Financial expense
4
-15 536
-5 697
Profit before tax
-23 337
-4 881
Income tax
5
1 884
-1 016
Net income
-21 453
-5 897
Consolidated statement of comprehensive
income
(Amounts in NOK 1000)
2021
2020
Net income
-21 453
-10 825
Other comprehensive income
-
-
Total comprehensive income for the period
(21 453)
(10 825)
Annual report 2021
124
Statement of financial position
(Amounts in NOK 1000)
ASSETS
Note
31.12.2021
31.12.2020
Non-current assets
Deferred tax asset
5
3 299
305
Technology
7 803
-
Sum intangible assets
10 914
305
Property, plant and equipment
-
6
Sum tangible assets
-
6
Shares and investments
6
749 459
635 794
Other non-current assets
7
103 189
119 801
Sum financial assets
852 648
755 595
Total non-current assets
863 562
755 907
Receivables from Group companies
7
131 181
71 662
Trade receivables
-
1 943
Other receivables
2 928
210
Total inventories and receivables
134 108
73 815
Cash and cash equivalents
10
808
435
Total current assets
134 916
74 250
Total assets
998 478
830 157
EQUITY AND LIABILITIES
31.12.2021
31.12.2020
Share capital
209 630
183 295
Other equity
443 861
373 963
Total equity
653 491
557 258
Other non-current debt
90 264
96 934
Total non-current liabilities
90 264
96 934
Current interest-bearing liabilities
9
68 491
106 985
Trade payables
44 656
2 517
Current liabilities to Group companies
7
133 107
62 666
Public duties
(1 496)
760
Other current liabilities
9 964
3 037
Total current liabilities
254 722
175 965
Total liabilities
344 987
272 899
Total equity and liabilities
998 478
830 157
Annual report 2021
125
Oslo, 22 March 2022, signatures from the Board of Directors and the CEO of Techstep ASA:
Jens Rugseth
Chairman
Harald Arnet
Board member
Ingrid Leisner
Board member
Anders Brandt
Board member
Melissa Ann Mulholland
Board member
Børge Astrup
CEO
Annual report 2021
126
Statement of changes in equity
(Amounts in NOK 1000)
Share
capital
Other paid-
in capital
Other equity
Reva.
Reserve
Total equity
Equity as at 1 January 2020
162 795
531 161
(240 091)
-
453 865
Profit for the period
(5 897)
(5 897)
Total comprehensive income for the
period
-
-
(5 897)
-
(5 897)
Transactions with owners in their capacity as owners:
Contributions of equity net of
transaction costs
Issue of ordinary shares as
consideration for a business
combination, net of transaction costs
and tax
20 500
87 088
(133)
107 455
Share-based payments
1 834
1 834
Equity as at 31 December 2020
183 295
618 249
(244 286)
-
557 258
Equity as at 1 January 2021
183 295
618 249
(244 286)
-
557 258
Profit for the period
(21 453)
(21 453)
Total comprehensive income for the
period
-
-
(21 453)
-
(21 453)
Transactions with owners in their capacity as owners:
Issue of ordinary shares as
consideration for a business
combination, net of transaction costs
and tax
3 679
12 141
-
15 821
Proceeds from issuance of shares net
of
transaction costs
22 655
75 264
-
97 920
Share-based payments
3 946
3 946
Equity as at 31 December 2021
209 630
705 655
(261 794)
-
653 491
Annual report 2021
127
Statement of cash flow
(Amounts in NOK 1000)
Note
2021
2020
Profit before tax
(24 001)
(8 040)
Share-based payments
3 946
1 834
Remeasurement of contingent liability
8
-
4 859
Depreciation and amortisation
6
30
Changes in net operating working capital
43 952
(63 112)
Net cash flow from operational activities
23 902
(64 430)
Payment for acquisition of subsidiaries
(87 233)
(69 202)
Payment for intangible assets
(7 803)
-
Net cash used on investment activities
(95 036)
(69 202)
Repayment of borrowings
(64 410)
(3 826)
Proceeds from issuance of shares
101 853
-
Proceeds from borrowings
34 064
136 220
Net cash flow from financing activities
71 507
132 394
Net change in cash and cash equivalents
373
(1 239)
Cash and cash equivalents at 1 January
435
1 674
Effects of exchange rate changes on cash and cash
equivalents
-
-
Cash and cash equivalents as of 31 December*
11
808
435
of which is restricted
784
425
* Cash flow has been restated for 2020. Bank overdraft and cash is no longer presented net in the
consolidated statement of cash flow.
Annual report 2021
128
Techstep ASA – Notes to the annual accounts
1. General information, basis for preparation
2. Salaries and personnel cost
3. Other operational costs
4. Finance income and expenses
5. Income tax
6. Shares in subsidiaries and joint ventures
7. Receivables and liabilities to Group companies
8. Other income and other expenses
9. Borrowings
10. Cash and cash equivalents
11. Events after the reporting period
Annual report 2021
129
Note 1. General information, basis for preparation
Techstep ASA is a public limited company incorporated and domiciled in Norway. The address of its
registered office is Brynsalléen 4, 0667 Oslo, Norway. The shares of Techstep ASA are listed on the
Oslo Stock Exchange under ticker TECH.
Techstep ASA is the parent company of the Techstep Group, with business in Norway, Sweden and
Denmark. For more information see the consolidated financial statements.
The financial statements were approved by the Board of Directors on 22 March 2022 and will be
proposed to the General Meeting 22 April 2022.
The financial statements for the company Techstep ASA have been prepared and presented in
accordance with simplified IFRS pursuant to § 3-9 in the Norwegian Accounting Act.
For the accounting principles used to prepare and present the financial statements refer to note 1
General information and summary of significant accounting policies in the Group financial
statement.
Accounting principles applicable to the company not presented in the Group financial statements:
Shares in subsidiaries and joint ventures
Subsidiaries are all entities controlled, either directly or indirectly, by Techstep ASA. Techstep ASA
controls an entity when it is exposed to, or has rights to, variable returns from the involvement with
the entity and has the ability to affect those returns through power over the entity. Power over an
entity exists when Techstep has power to direct the activities in which significantly affect the entity's
returns. Generally, there is a presumption that a majority of voting rights results in control. Techstep
considers all relevant facts and circumstances in assessing whether control exist, including
contractual arrangements and other potential voting rights to the extent that these are substantive.
Shares are classified as investment in subsidiaries from the date Techstep ASA effectively obtains
control of the subsidiary (acquisition date).
A joint venture is an entity over which Techstep ASA directly, or indirectly through subsidiaries, has
joint control. Joint control is normally presumed to exist when Techstep controls 50% of the voting
power of the investee.
Shares are measured at cost, and impairment loss is recognised if the carrying amount exceeds the
recoverable amount. The impairment is reversed if the basis for the write-down is no longer present.
Group contributions received are included in financial income provided that they do not represent a
repayment of capital invested. Group contributions that represent a repayment of capital are
accounted for as a reduction in the cost of investments. Net Group contributions payable (gross
Group contributions less tax effect) are accounted for as cost of investments in subsidiaries.
Dividends from subsidiaries and associates are included in financial income.
Annual report 2021
130
Note 2. Salaries and personnel cost
2021
2020
Salary and holiday pay
21 639
12 690
Social security tax
1 722
1 756
Pension costs including social security tax
538
450
Other personnel costs
99
561
Total salaries and personnel cost
24 549
15 457
Number of employees at year end
5
4
The Company's pension plans meet the requirements of the Act on Mandatory occupational
pensions (OTP).
Please refer to note 28 Remuneration to management in the consolidated Group financial
statements for details regarding executive management remuneration and note 25 Share, capital
structure and shareholders in the consolidated Group financial statements for information about
share option grant.
Auditor remuneration
2021
Audit
Services
Other
attestation
services
Tax
Advisory
Services
Other non-
audit
services
Total
BDO
884
84
0
0
968
Totalt
884
84
0
0
968
2020
Audit
Services
Other
attestation
services
Tax
Advisory
Services
Other non-
audit
services
Total
BDO
892
0
0
0
892
Totalt
892
0
0
0
892
Annual report 2021
131
Note 3. Other operational costs
2021
2020
Office rental and operations
137
9
Human resources
2 578
0
Sales and marketing
1 585
17
Computers and software
1 859
269
Fees for external services
13 848
6 814
Communication
48
31
Travel expense
136
40
Other costs
1 225
2 004
Management fee*
65 804
0
Total operating costs
87 220
9 183
*The group has reorganised its management fee structure in 2021. In 2020 management fee to
group companies originated in Techstep Nordic AS (Merged into Techstep Norway in 2021) and
Techstep ASA. The management fee from Techstep Nordic AS was channeled through Techstep ASA
and accounted for net of revenues. The amount channeled through Techstep ASA was NOK 26.9
million in 2020.
After the reorganisation all management fee is invoiced to ASA and presented gross as revenue and
other operational costs.
Note 4. Finance income and expenses
2021
2020
Gain on sale of equity instruments
25 065
0
Interest income
3 800
2 371
Group contributions received
36 606
15 136
Other financial income
10 407
2 578
Total financial income
75 879
20 086
Interest expenses
8 235
2 785
Other financial expenses
7 301
2 912
Total financial expenses
15 536
5 697
Gain on sale of equity instruments in 2021 refers to an group internal sale of the shares in Techstep Holding AB to
Optidev AB.
Annual report 2021
132
Note 5. Income tax
2021
2020
Change in deferred tax
-1 884
1 016
Tax expense
-1 884
1 016
Reconciliation of relationship between accounting profit and tax expense
Profit before tax
-24 001
-4 881
Tax at the Norwegian tax rate of 22 % (2020 - 22%)
-5 280
-1 074
Tax effect permanent differences
3 396
2 242
Other
-
-152
Income tax expense
-1 884
1 016
Amounts recognised directly in equity
Deferred tax arising in the reporting period directly debited to equity:
Deferred tax: Share issue cost
-1 109
-37
Total
-1 109
-37
Tax losses
22%
22%
Unused tax losses for which no deferred tax asset has been recognised
-441 901
-441 901
Potential tax asset at 22 % tax rate
-97 218
-97 218
Deferred tax
The balance comprises temporary differences attributable to:
Property, plant and equipment
-636
-796
Accounting accruals
-196
-592
Tax loss carried forward
-14 163
-
Total basis for deferred tax
-14 995
-1 387
Tax rate deferred tax
22%
22%
Net deferred tax with applicable year's tax rate
-3 299
-305
Net deferred tax (+)/ deferred tax asset (-)
-3 299
-305
Annual report 2021
133
Note 6. Shares in subsidiaries and Joint ventures
Shares in subsidiaries 2021
Location
Ownership/
voting
rights
Book value
Equity
31.12.2021
Net income
2021
Techstep Norway AS
Oslo
100%
244 078
-49 631
-2 343
Mytos AS
Oslo
100%
121 530
9 983
-5 069
Techstep Finance AS**
Oslo
80%
30 916
10 608
4 380
Techstep APS
Denmark
100%
65
-458
-259
Optidev AB
Borås
100%
243 455
26 529
6 904
Famoc S.A*
Gdansk
75%
109 415
-13 148
-1 546
Famoc Software Ltd.*
Cork
75%
0
924
-139
Santa Rita Private Venture*
Gdansk
100%
0
1 939
57
Total
749 459
-13 255
1 984
*Reported net income relates to the ownership period from 1. July 2021 - 31. December 2021.
*Santa Rita Private Venture owns the remaining 25% of Famoc S.A and Famoc Software Ltd.
**The remaining 20% of Techstep Finance AS was purchased in 2022. Refer to note 29 in the Group financial
statement for details.
Shares in subsidiaries 2020
Location
Ownership/
voting
rights
Book value
Equity
31.12.2020
Net income
2020
Techstep Nordic AS
Oslo
100%
35 000
30 604
-13 775
Techstep Holding AB
Karlstad
100%
49
29 937
-1 375
Techstep Norway AS
Oslo
100%
204 780
79 557
19 687
Mytos AS
Oslo
100%
121 530
15 122
-300
Techstep Finance AS
Oslo
80%
30 916
4 856
6 072
Techstep APS
Denmark
100%
65
193
-120
Optidev AB*
Borås
100%
243 455
17 286
4 547
Total
635 794
177 555
14 736
*Reported net income relates to ownership period from 1. October 2020 – 31. December 2020
Annual report 2021
134
Note 7. Receivables and liabilities to Group companies
2021
2020
Non-current receivables
103 189
119 801
Total non-current receivables
103 189
119 801
2021
2020
Group contribution received
36 606
15 136
Other current receivables
94 574
56 526
Trade receivables
0
1 943
Total current receivables
131 181
73 605
2021
2020
Other current liabilities
133 107
62 666
Total current liabilities
133 107
62 666
Non-Current receivables are related to investments in the Swedish operations. The receivable is
interest bearing and considered a part of the Group’s net investment in Sweden.
Note 8. Other income and other expenses
2021
2020
Derecognition of contingent consideration
0
4 859
Total
0
4 859
In relation to the acquisition of Wizor AS (now a part of Techstep Norway AS), a contingent
consideration was recognised. The payment of the contingent consideration was dependent on the
company reaching an accumulated Gross profit target ending in December 2020. the target was not
reached. The contingent consideration is reversed in full in 2020
2021
2020
Acquisition related costs
-9 716
-8 687
Total
-9 716
-8 687
Acquisition related expenses in 2020 are related to the acquisition of Optidev and eConnectivity. In
2021 the expenses are related to the acquisition of Famoc.
Annual report 2021
135
Note 9. Borrowings
The company has acquired Famoc S.A, Famoc Software Ltd and Santa Rita Private Venture in 2021.
The transaction was partly financed by borrowings. Refer to Note 15 in the Group financial
statements regarding borrowings and note 22 in the Group financial statements regarding the
acquisition of Famoc S.A, Famoc Software Ltd and Santa Rita Private Venture.
The company has acquired Optidev AB in 2020. The transaction was partly financed by borrowings.
Refer to Note 15 in the Group financial statements regarding borrowings and note 22 in the Group
financial statements regarding the acquisition of Optidev AB.
The company entered as the head of a cash pool for the Group companies in 2020. The cash pool
includes a credit facility presented net with cash deposits as current interest-bearing liabilities. Refer
to note 15 in the Group financial statement for details.
Annual report 2021
136
Note 10. Cash and cash equivalents
The Company's cash and cash equivalents consists of:
2021
2020
Cash and bank deposits
808
435
Total
808
435
Of which is restricted
784
435
Note 11. Events after the reporting period
Please refer to note 29 Events after the reporting period in the consolidated Group financial
statements.
Annual report 2021
137
Alternative performance measures
Techstep Group’s financial information is prepared in accordance with International Financial
Reporting Standards (IFRS). In addition, it is management’s intention to provide alternative
performance measures that are regularly reviewed by management to enhance the understanding
of Techstep’s performance, but not instead of the financial statements prepared in accordance with
IFRS. The alternative performance measures presented may be determined or calculated differently
by other companies. The principles for measuring the alternative performance measures are in
accordance with the principles used both for segment reporting in Note 2 and internal reporting to
Group Executive Management (chief operating decision makers) and are consistent with financial
information used for assessing performance and allocating resources.
Gross profit
Gross profit is defined as Total revenue less Cost of goods sold.
Gross margin
Gross margin is defined as Total revenue less Cost of goods sold divided by Total revenue.
EBITDA
Earnings before interest, tax, depreciation, amortisation and impairment (EBITDA) is a key financial
parameter for Techstep. This measure is useful to users of Techstep's financial information in
evaluating operating profitability on a more variable cost basis as it excludes depreciation and
amortisation expense related primarily to leases, capital expenditures and acquisitions that
occurred in the past. The EBITDA margin presented is defined as EBITDA divided by total revenues.
Adjusted EBITDA
Adjusted Earnings before interest, tax, depreciation, amortisation and impairment (EBITDA) is based
on EBITDA but adjusted for transactions of a non-recurring nature. Such non-recurring transactions
include, but are not limited to restructuring costs, gains or losses related to sale of subsidiaries,
acquisition-related costs and other nonrecurring income and expenses.
EBITA
Earnings before interest, tax and amortisation (EBITA) is a key financial parameter for Techstep. This
measure is useful to users of Techstep's financial information in evaluating operating profitability on
a more variable cost basis as it excludes depreciation related primarily to leases and capital
expenditures and acquisitions that occurred in the past. The EBITA margin presented is defined as
EBITA divided by total revenue.
EBIT
Earnings before interest and tax (EBIT) is useful to users with regard to Techstep's financial
information in evaluating operating profitability on the cost basis as well as the historic cost related
to past business combinations and capex. The EBIT margin presented is defined as EBIT divided by
total revenue.
Annual report 2021
138
Total net operating expenses
Total net operating expenses includes the line items Cost of goods sold, Salaries and personnel
costs, Other operating costs, Share of profit (loss) in joint venture, Depreciation, Amortisation,
Impairment and Other income.
Hardware revenue
Hardware revenue is defined as revenue from sales of tangible goods and related discounts from
suppliers and partners.
Hardware share of revenue is the hardware revenue divided by total revenues
Solutions revenue
Solutions revenue is defined as revenue from sales of licenses, support and other non-tangible items
to customers. Also included are discounts from suppliers and partners. Solutions share of revenue is
the solutions revenue divided by total revenue
Net interest-bearing debt (NIBD)
Net interest-bearing debt is non-current interest-bearing debt plus current interest-bearing
liabilities less cash and cash equivalents.
Equity ratio
Equity ratio is defined as Total equity divided by total equity and liabilities.
Capital Expenditure (Capex)
Capital expenditure is the same as payment for property, plant and equipment and intangible
assets.
Annual on own software
ARR is calculated as the revenue the following 12 months from own software as at the balance sheet
date. The ARR is calculated by multiplying the number of users of own software with the price per
product and in turn annualized.
Recurring revenue
The recurring revenue portfolio includes Own Software, Advisory & Services and Hardware-as-a-
Service on contracts of 24 months or more excluding mobile expenses management (MEM) white
label (with three months’ notice before year-end). Calculated as the recognized recurring revenue
each quarter, annualized.
LTM
Last Twelve Months. Sum of each month for the historical period of the previous 12 months. Used for
gross profit and EBITDA adjusted.
Annual report 2021
139
APM's in the income statement
2021
2020
Total revenue
1 305 090
1 142 866
Cost of goods sold
-845 305
-764 579
Gross profit
459 785
378 287
Gross margin
35%
33%
Salaries and personnel costs
-281 620
-208 243
Other operational costs
-108 549
-74 405
Other income
22
17 843
Other expenses
-17 209
-9 028
EBITDA
52 430
104 455
Depreciation
-108 229
-87 332
Impairment
0
0
EBITA
-55 799
17 122
Amortisation
-54 723
-27 892
EBIT
-110 522
-10 771
Adjusted EBITDA
2021
2020
EBITDA
52 430
104 455
Other income
22
17 843
Other expense
-17 209
-9 028
Adjusted EBITDA
69 616
95 640
Total net operating expenses
Cost of goods sold
-845 305
-764 579
Salaries and personnel costs
-281 620
-208 243
Other operational costs
-108 549
-74 405
Depreciation
-108 229
-87 332
Amortisation
-54 723
-27 892
Impairment
0
0
Other expenses
-17 209
-9 028
Total net operating expenses
-1 415 634
-1 171 479
Revenue splits
Revenue
1 305 090
1 142 866
Hardware revenue
956 811
867 244
Solutions revenue
348 279
275 622
Hardware share of revenue
73%
76%
Solutions share of revenue
27%
24%
Annual report 2021
140
NIBD
2021
2020
Cash and cash equivalents
50 350
27 203
Non-current interest-bearing borrowings
97 402
108 539
Current interest-bearing borrowings
74 548
85 502
NIBD
-121 600
-166 838
Equity ratio
Total equity
555 586
563 451
Total equity and liabilities
1 314 655
1 199 131
Equity ratio
42%
47%
Debt to equity ratio
Total liabilities
759 069
635 680
Total equity
555 586
563 451
Debt to equity ratio
1.37
1.13
ARR
Number of own software users (1000)
66
61
Average price own software
1 050
543
MMS-Related ARR
69 613
32 951
Number of own software users (1000)
183
188
Average price MEM white label
152
161
White-label ARR
27 860
30 378
Total ARR from own IPP
97 473
63 329
Annual report 2021
141
Annual report 2021
142
Annual report 2021
143
Annual report 2021
144
Annual report 2021
145
Annual report 2021
146
Annual report 2021
147
Annual report 2021
148
GRI Standard 2016
Reference
General disclosures
GRI 102: General disclosures
102-1
Name of the organization
Techstep ASA
102-2
Activities, brands, products, and
services
p. 5-7, 149
102-3
Location of headquarter
p. 7, 149
102-4
Location of operations
p. 7, 149
102-5
Ownership and legal form
p. 108-109, 149
102-6
Markets served
p. 7, 70-71
102-7
Scale of the organization
p. 7, 20
102-8
Information on employees and other
workers
p. 20-22
102-9
Supply chain
p. 25
102-10
Significant changes to the organization
and its supply chain
No significant changes in 2021. Number of suppliers
has been reduced by approx. 30% over the last two
years.
102-11
Precautionary Principle or approach
Techstep seeks to apply the precautionary
principle in its day-to-day decision making
102-12
External initiatives
Signatory UN Global Compact (22.02.2022)
Signed the Norwegian Guide against
Greenwashing
102-13
Membership of associations
None
102-14
Statement from senior decision-maker
p. 9-11
102-15
Key impacts, risks, and opportunities
p. 44-46, 97-99, 16-17
102-16
Values, principles, standards, and
norms of behavior
p. 2-3
102-17
Mechanisms for advice and concerns
about ethics
p. 25, Code of conduct
102-18
Governance structure
p. 14
102-40
List of stakeholder groups
p. 15
102-41
Collective bargaining agreements
All employees in Sweden are covered by collective
bargaining agreements.
102-42
Identifying and selecting stakeholders
p. 15
102-43
Approach to stakeholder engagement
p. 15
102-44
Key topics and concerns raised
p. 15
102-45
Entities included in the consolidated
financial statements
p. 70-71
102-46
Defining report content and topic
Boundaries
p. 12
102-47
List of material topics
p. 15
102-48
Restatements of information
None
102-49
Changes in reporting
None - inagural report
102-50
Reporting period
01.01.2021 - 31.12.2021
102-51
Date of most recent report
2021-12-31
Annual report 2021
149
102-52
Reporting cycle
Annual
102-53
Contact point for questions regarding
the report
Cathrine Birkenes, Head of Sustainability and
Compliance: [email protected]
102-54
Claims of reporting in accordance with
the GRI Standards
This report has been prepared in accordance with
the GRI Standards: Core option
102-55
GRI content index
p. 146
102-56
External assurance
None
Material topics
Ethical business conduct
GRI 103: Management
approach
103-1
Explanation of the material topic and its
Boundary
p. 26, Code of conduct
103-2
The management approach and its
components
p. 26, Code of conduct
103-3
Evaluation of the management
approach
p. 26, Code of conduct
GRI 205: Anti-corruption
205-1
Operations assessed for risks related to
corruption
All business areas in the group
205-2
Communication and training about
anti-corruption policies and procedures
Mandatory signature on CoC for all employees
205-3
Confirmed incidents of corruption and
actions taken
No incidents reported during 2021.
Climate action
GRI 103: Management
approach
103-1
Explanation of the material topic and its
Boundary
p. 18-19
103-2
The management approach and its
components
p. 18-19
103-3
Evaluation of the management
approach
p. 18-19
GRI 305: Environment
305-1
Direct (Scope 1) GHG emissions
p. 18-19
305-2
Energy indirect (Scope 2) GHG
emissions
p. 18-19
305-3
Other indirect (Scope 3) GHG emissions
p. 18-19
305-4
Emission intensity (Scope 1 & 2 per NOK
million revenue)
p. 18-19
305-5
Reduction of GHG emissions
p. 18-19
Circularity
GRI 103: Management
approach
103-1
Explanation of the material topic and its
Boundary
p. 17-18
103-2
The management approach and its
components
p. 17-18
103-3
Evaluation of the management
approach
p. 17-18
GRI 306: Waste
306-1
Waste generation and significant
waste-related impacts
p. 17-18
GRI 306: Topic-specific
Management approach
disclosures
306-2
Management of significant waste-
related impacts
p. 17-18
Techstep-specific
disclosure
Number of mobile devices received
p. 17-18
Avoided emissions (scope 4)
p. 17-18
Annual report 2021
150
Responsible supply chain
GRI 103: Management
approach
103: 1-3
Explanation of the material topic and its
Boundary
p. 25
103-2
The management approach and its
components
p. 25
103-3
Evaluation of the management
approach
p. 25
GRI 308: Supplier
environmental assessment
308-2
Negative environmental impacts in the
supply chain and actions taken
p. 25
GRI 214: Supplier social
assessment
414-2
Negative social impacts in the supply
chain and actions taken
p. 25
Information security &
data privacy
GRI 103: Management
approach
103-1
Explanation of the material topic and its
Boundary
p. 24
103-2
The management approach and its
components
p. 24
103-3
Evaluation of the management
approach
p. 24
GRI 418: Customer privacy
418-1
Substantiated complaints concerning
breaches of customer privacy and
losses of customer
p. 24
Gender equality
GRI 103: Management
approach
103-1
Explanation of the material topic and its
Boundary
p. 20-21
103-2
The management approach and its
components
p. 20-21
103-3
Evaluation of the management
approach
p. 20-21
GRI 405: Diversity and equal
opportunity
405-1
Diversity of governance bodies and
employees
p. 20-21
Annual report 2021
151
Mandatory concepts
Name of reporting entity or other means of identification
Explanation of change in name of reporting entity or
other means of identification from end of preceding
reporting period
Domicile of entity
Legal form of entity
Country of incorporation
Address of entity's registered office
Principal place of business
Description of nature of entity's operations and principal
activities
Name of parent entity
Name of ultimate parent of group
Annual report 2021
152