Atea Asa · OSL:ATEA
Atea Asa — Q4 2023 Earnings Presentation
38 slides from Atea Asa's earnings presentation, Feb 8, 2024
Slide 1: Q4 2023 Presentation
Q4 2023 Presentation February 8, 2024
Slide 2: Highlights – Q4 2023
Highlights – Q4 2023 Gross sales of NOK 14.4 billion Revenue of NOK 9.4 billion Up 3.2% y-o-y Down 4.3% y-o-y EBIT of NOK 405 million Free cash flow of NOK 1.5 billion EBIT Down 9.9% y-o-y Up NOK 13 million y-o-y
Slide 3: Revenue growth (2022 – 2023, by quarter)
Revenue growth (2022 – 2023, by quarter) 30.0 % • Exceptionally high revenue growth in «post-pandemic» period 25.0 % (mid-2022 to mid-2023): ‒ Easing of hardware supply 20.0 % constraints ‒ “Return to the workplace” 15.0 % investment ‒ Price inflation 10.0 % • Gross margins fall in «post-pandemic» 5
Slide 4: Revenue breakdown – Q4 2023
Revenue breakdown – Q4 2023 • Hardware revenue falls from very strong comparable period last year • Software and services continue to grow and margins recover, resulting in increased gross profit Growth Growth 2 yr. CURRENCY: MNOK Q4 2021 Q4 2022 Q4 2023 2021-22 2022-23 CAGR Gross Sales 11,863 13,95
Slide 5: Business unit performance – Q4 2023
Business unit performance – Q4 2023 • Lower revenue in all markets due to weaker hardware market • EBIT decline in Nordic countries, while Baltics shows steady growth Revenue Gross Margin EBIT Currency: Local in million Q4 2023 Q4 2022 Growth% Q4 2023 Q4 2022 Q4 2023 Q4 2022 Growth% Norway, NOK 2,29
Slide 6: Cash flow
Cash flow • Cash flow from operations of NOK 1.6 billion in Q4 2023, and NOK 1.9 billion in FY 2023 CURRENCY: MNOK Q4 2023 Q4 2022 FY 2023 FY 2022 Cash earnings 407 516 1,521 1,439 Changes in working capital 1,227 1,135 356 -409 Cash flow from operations 1,633 1,650 1,878 1,030 Capital expenditures
Slide 7: Net financial position
CURRENCY: MNOK 31-Dec 2023 31-Dec 2022 Interest-bearing liabilities -625 -617 Net Cash and cash equivalents 1,587 922 financial Net financial position* 961 304 position EBITDA - rolling 4 Q* 1,932 1,812 Net debt / EBITDA, end of quarter (ratio) -0.5 -0.2 Net cash position of NOK 961 million Loan cov
Slide 8: Financial performance – 5 yr. CAGR
Financial performance – 5 yr. CAGR • Atea has delivered consistent growth in sales and operating profit based on its unique competitive position in the growing IT infrastructure market 60,000 1,400 50,000 1,200 2018 - 2023 performance 1,000 40,000 • Sales CAGR of 8%, 800 nearly all organic 30,000 •
Slide 9: Ecosystem of AI
Ecosystem of AI Vendor Channel End user • Nvidia, Microsoft, IBM, • Resellers and System • All digital users in the world Google, etc. Integrators • Vertical and horizontal • OpenAI, etc. • Consulting companies solutions • Ecosystem around • Manage service providers • Users dealing with big producin
Slide 10: Key market opportunities
Key market opportunities Software and cloud Hardware (and GPU’s) End of life for Windows10 Consulting services Microsoft Cloud for Sovereignty
Slide 11: Some customers we are working with
Some customers we are working with Center for the Swedish NAV Wartsila Dermosil Stormossen Finnish Archive Trafikverket Tryg Trafikk Norwegian Steel Sametinget Statsforvalteren DDV Nordlaks Nord Universitet Consto SIVA Norstat Sykehusbygg Eviny HEM City of Lidingø Atea AppXite
Slide 12: Customer cases
Customer cases Center of the Finnish National Archive Norwegian Council for road safety . Swedish transport administration Atea
Slide 13: Amara's law quote
“We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.” Amara's law
Slide 14: Highlights – Full Year 2023
Highlights – Full Year 2023 Gross sales of NOK 51.9 billion Revenue of NOK 34.7 billion Up 11.3% y-o-y Up 7.1% y-o-y EBIT of NOK 1,244 million Operating cash flow of NOK 1,878 million EBIT Up 7.6% excluding an Up NOK 847 million y-o-y extraordinary gain last year
Slide 15: Dividend
8.00 7.00 7.00 Dividend 6.00 6.25 5.50 5.00 The Board will propose a 5.00 dividend of NOK 7.00 per share 4.00 at the 2024 AGM 3.00 Corresponds to 97% of 2023 EPS 2.00 1.00 0.00 2021 2022 2023 2024 Dividend per share (NOK)* * For Norwegian tax purposes, the dividend shall be considered as repayment o
Slide 16: We build the future with IT.
We build the future with IT.
Slide 17: Q4 2023 Presentation – Fact pack
Q4 2023 Presentation Fact pack February 8, 2024
Slide 18: Highlights – Group
Highlights – Group Q4 Q4 Full year Full year NOK in million 2023 2022 2023 2022 Gross sales 14,396 13,953 51,938 46,664 Revenue 9,399 9,820 34,704 32,397 Gross profit 2,804 2,617 10,249 9,002 EBIT 405 449 1,244 1,196 EBIT margin (%) 4.3% 4.6% 3.6% 3.7% Net profit 250 300 800 848 Earnings per share (
Slide 19: Consolidated statement of financial position – Group
Consolidated statement of financial position – Group NOK in million 31 Dec 2023 31 Dec 2022 ASSETS Property, plant and equipment 514 541 Right-of-use assets 1,314 1,253 Deferred tax assets 209 207 Goodwill 4,336 4,132 Other intangible assets 572 452 Other long-term receivables 182 135 Non-current as
Slide 20: Full-time employees – Group
Full-time employees – Group FTEs, end of period 31 Dec 2023 31 Dec 2022 Norway 1,785 1,779 Sweden 2,709 2,712 Denmark 1,483 1,499 Finland 561 507 Baltics 741 706 Logistics 280 285 Atea Global Services 530 524 Atea ASA 10 9 AppXite 53 51 Atea Group 8,152 8,073
Slide 21: Financial performance actual – Segment
Financial performance actual – Segment NOK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Norway 1,746.9 1,926.7 1,952.9 2,425.5 1,874.7 2,035.0 2,081.9 2,296.6 Sweden 2,672.4 3,021.6 3,230.9 3,738.2 3,171.3 3,536.1 2,739.5 3,397.8 Denmark 1,622.0 1,640.9 1,741.7 2,232.5 2,310.0 1,920.1
Slide 22: Financial performance pro forma – Segment
Financial performance pro forma – Segment NOK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Norway 1,746.9 1,926.7 1,952.9 2,425.5 1,874.7 2,035.0 2,081.9 2,296.6 Sweden 2,685.0 3,034.3 3,239.3 3,738.2 3,171.3 3,536.1 2,739.5 3,397.8 Denmark 1,622.0 1,640.9 1,741.7 2,232.5 2,310.0 1,920
Slide 23: Income statement actual – Group (NOK million)
Income statement actual – Group (NOK million) NOK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Hardware 4,809.7 5,324.4 5,953.5 7,088.0 6,146.4 6,139.5 5,377.2 6,466.9 Software 3,230.7 4,738.6 2,470.2 4,342.7 3,717.4 5,956.8 3,072.8 5,144.4 Product sales 8,040.4 10,063.0 8,423.7 11,430
Slide 24: Income statement pro forma – Group (NOK million)
Income statement pro forma – Group (NOK million) NOK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Hardware 4,809.7 5,324.4 5,953.5 7,088.0 6,146.4 6,139.5 5,377.2 6,466.9 Software 3,230.7 4,738.6 2,470.2 4,342.7 3,717.4 5,956.8 3,072.8 5,144.4 Product sales 8,040.4 10,063.0 8,423.7 11,
Slide 25: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) NOK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 1,994.7 2,260.8 2,057.7 2,787.6 2,083.6 2,338.7 2,308.8 2,958.2 Services sales 549.6 566.7 520.9 624.2 610.8 635.7 557.5 668.4 Gross sales 2,544.3 2,827.5 2,578.6 3,411.7 2,694
Slide 26: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) SEK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 3,599.3 4,619.0 3,734.4 5,016.6 4,022.0 5,278.5 3,207.4 4,635.0 Services sales 820.7 880.1 792.0 1,021.6 897.9 984.4 824.3 1,071.3 Gross sales 4,420.0 5,499.1 4,526.3 6,038.2 4
Slide 27: Income statement pro forma – Sweden (SEK million)
Income statement pro forma – Sweden (SEK million) SEK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 3,599.3 4,619.0 3,734.4 5,016.6 4,022.0 5,278.5 3,207.4 4,635.0 Services sales 833.9 893.3 800.8 1,021.6 897.9 984.4 824.3 1,071.3 Gross sales 4,433.2 5,512.3 4,535.2 6,038.
Slide 28: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) NOK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 3,412.1 4,415.0 3,536.3 4,767.6 3,944.3 5,347.8 3,080.7 4,701.5 Services sales 778.0 841.8 750.0 970.9 880.6 1,000.0 796.8 1,085.4 Gross sales 4,190.2 5,256.8 4,286.3 5,738.5 4
Slide 29: Income statement pro forma – Sweden (NOK million)
Income statement pro forma – Sweden (NOK million) NOK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 3,412.1 4,415.0 3,536.3 4,767.6 3,944.3 5,347.8 3,080.7 4,701.5 Services sales 790.6 854.4 758.4 970.9 880.6 1,000.0 796.8 1,085.4 Gross sales 4,202.7 5,269.4 4,294.7 5,738.
Slide 30: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) DKK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 1,237.6 1,707.4 1,215.1 1,697.3 1,651.6 1,899.7 1,076.9 1,559.9 Services sales 412.5 373.8 408.0 470.2 395.9 399.6 395.7 453.7 Gross sales 1,650.1 2,081.2 1,623.1 2,167.5 2,04
Slide 31: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) NOK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 1,652.0 2,297.4 1,645.0 2,359.2 2,437.4 2,961.3 1,652.3 2,436.5 Services sales 550.7 503.9 551.6 654.2 584.2 625.1 605.5 707.2 Gross sales 2,202.7 2,801.3 2,196.6 3,013.4 3,02
Slide 32: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) EUR in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 78.3 79.7 88.3 103.7 98.8 101.0 93.9 89.6 Services sales 8.9 12.0 10.4 13.5 12.3 12.9 12.0 15.0 Gross sales 87.2 91.7 98.7 117.2 111.1 113.9 105.9 104.6 Product margin (%) 10.
Slide 33: Income statement pro forma – Finland (EUR million)
Income statement pro forma – Finland (EUR million) EUR in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 78.3 79.7 88.3 103.7 98.8 101.0 93.9 89.6 Services sales 10.1 12.0 10.4 13.5 12.3 12.9 12.0 15.0 Gross sales 88.4 91.7 98.7 117.2 111.1 113.9 105.9 104.6 Product margin (%)
Slide 34: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) NOK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 777.9 799.0 888.2 1,071.4 1,084.9 1,176.8 1,071.4 1,046.0 Services sales 88.0 120.2 104.6 139.7 135.3 150.4 137.2 174.4 Gross sales 865.9 919.2 992.8 1,211.1 1,220.3 1,327.2 1
Slide 35: Income statement pro forma – Finland (NOK million)
Income statement pro forma – Finland (NOK million) NOK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 777.9 799.0 888.2 1,071.4 1,084.9 1,176.8 1,071.4 1,046.0 Services sales 100.0 120.2 104.6 139.8 135.3 150.4 137.2 174.4 Gross sales 877.9 919.3 992.8 1,211.2 1,220.3 1,327
Slide 36: Income statement actual – Baltic (EUR million)
Income statement actual – Baltic (EUR million) EUR in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 21.0 24.8 25.4 38.2 31.7 22.7 28.5 36.7 Services sales 10.9 11.0 12.3 15.3 13.4 14.4 13.8 16.3 Gross sales 31.8 35.8 37.7 53.5 45.1 37.0 42.3 53.0 Product margin (%) 13.3% 12.6
Slide 37: Income statement actual – Baltic (NOK million)
Income statement actual – Baltic (NOK million) NOK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 208.3 248.3 255.1 393.0 348.5 267.1 325.0 425.6 Services sales 107.8 110.5 123.9 158.0 147.3 167.3 156.8 189.5 Gross sales 316.1 358.8 379.1 551.0 495.8 434.4 481.8 615.1 Produ
Slide 38: Income statement actual – Group Shared Services (MNOK)
Income statement actual – Group Shared Services* (MNOK) NOK in million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Product sales 1,900.3 2,031.8 2,083.1 2,055.4 1,867.0 1,899.4 1,894.0 2,216.3 Services sales 194.6 198.3 210.9 230.6 238.3 265.1 265.5 282.3 Gross sales 2,095.0 2,230.1 2,294.0 2,28