Atea Asa · OSL:ATEA
Atea Asa — Q3 2023 Earnings Presentation
34 slides from Atea Asa's earnings presentation, Oct 19, 2023
Slide 1: Q3 2023 Presentation
Q3 2023 Presentation October 19, 2023
Slide 2: Highlights – Q3 2023
Highlights – Q3 2023 Gross sales of NOK 10.7 billion Gross profit of NOK 2.3 billion Up 2% y-o-y Up 10% y-o-y EBIT of NOK 298 million Net debt of NOK 171 million EBIT Up 5% y-o-y Down NOK 529 million y-o-y
Slide 3: Revenue breakdown – Q3 2023
Revenue breakdown – Q3 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 Q3 2021 Q3 2022 Q3 2023 2021-22 2022-23 CAGR Gross Sales 8,525 10,446
Slide 4: Business unit performance – Q3 2023
Business unit performance – Q3 2023 • Revenue growth falls from strong comparable period last year • Higher gross margin in all countries • EBIT growth in all countries except Denmark Revenue Gross Margin EBIT Currency: Local in million Q3 2023 Q3 2022 Growth% Q3 2023 Q3 2022 Q3 2023 Q3 2022 Growth%
Slide 5: Cash flow from operations – Q3 2023
Cash flow from operations – Q3 2023 • Cash flow from operations was an outflow of NOK 301 million, in line with historic seasonal trends 2,500 • Operating cash flow is 2019 highest in Q4 and generally 2,000 2020 negative in the third quarter 2021 1,500 2022 2023 • In 2022, cash flow was 1,000 abnorm
Slide 6: Net financial position
CURRENCY: MNOK 30-Sep 2023 30-Sep 2022 Interest-bearing liabilities -1,190 -1,517 Net Cash and cash equivalents 1,019 817 financial Net financial position* -171 -700 position EBITDA - rolling 4 Q* 1,962 1,764 Net debt / EBITDA, end of quarter (ratio) 0.1 0.4 Net debt of NOK 171 million Loan covenant
Slide 7: The Digital Spending Gap
The Digital Spending Gap • Total IT spending is forecasted to maintain a steady growth rate during the next 3 years, significantly higher than GDP growth 7 6 5 4 3 2 1 0 2022 2023 2024 GDP IT spending * Source: IDC
Slide 8: “Steady as she goes”
EBIT: Cost: Improvement is a big part of the Through the initiative “A Smarter culture of Atea, but also the Atea” we constantly motivate our industry we operate in. colleges to find the opportunities to save cost or do more with the We have projects to further improve same. EBIT in; managed service
Slide 9: Business outlook
Business outlook Strong market opportunities across all business lines Hardware Software Services • Solid underlying demand, as • Robust market driven by strong • Strong demand for consulting services, organizations need to customer demand and higher list pricing as customers need expertise as their
Slide 10: But our strongest asset is our people and our culture
But our strongest asset is our people and our culture
Slide 11: Summary – YTD 2023
Summary – YTD 2023 Gross sales of NOK 37.5 billion Revenue of NOK 25.3 billion Up 15% y-o-y Up 12% y-o-y EBIT of NOK 840 million Operating cash flow of NOK 244 million EBIT Up 19% excluding Atea Mobile sale last year Up NOK 865 million y-o-y
Slide 12: We build the future with IT.
We build the future with IT.
Slide 13: Q3 2023 Presentation Fact pack
Q3 2023 Presentation Fact pack October 19, 2023
Slide 14: Highlights – Group
Highlights – Group Q3 Q3 YTD YTD Full year NOK in million 2023 2022 2023 2022 2022 Gross sales 10,685 10,446 37,543 32,710 46,664 Revenue 7,743 8,082 25,305 22,577 32,397 Gross profit 2,282 2,082 7,446 6,385 9,002 EBIT 298 284 840 747 1,196 EBIT margin (%) 3.9% 3.5% 3.3% 3.3% 3.7% Net profit 182 196
Slide 15: Consolidated statement of financial position – Group
Consolidated statement of financial position – Group NOK in million 30 Sep 2023 30 Sep 2022 31 Dec 2022 ASSETS Property, plant and equipment 511 512 541 Right-of-use assets 1,313 1,242 1,253 Deferred tax assets 186 246 207 Goodwill 4,307 4,164 4,132 Other intangible assets 541 407 452 Other long-ter
Slide 16: Full-time employees – Group
Full-time employees – Group FTEs, end of period 30 Sep 2023 30 Sep 2022 Norway 1,770 1,761 Sweden 2,718 2,646 Denmark 1,469 1,486 Finland 548 508 Baltics 729 705 Logistics 284 279 Atea Global Services 532 532 Atea ASA 10 9 AppXite 52 54 Atea Group 8,111 7,980
Slide 17: 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 Norway 1,746.9 1,926.7 1,952.9 2,425.5 1,874.7 2,035.0 2,081.9 Sweden 2,672.4 3,021.6 3,230.9 3,738.2 3,171.3 3,536.1 2,739.5 Denmark 1,622.0 1,640.9 1,741.7 2,232.5 2,310.0 1,920.1 1,651.0 Finland 602.9
Slide 18: 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 Norway 1,746.9 1,926.7 1,952.9 2,425.5 1,874.7 2,035.0 2,081.9 Sweden 2,685.0 3,034.3 3,239.3 3,738.2 3,171.3 3,536.1 2,739.5 Denmark 1,622.0 1,640.9 1,741.7 2,232.5 2,310.0 1,920.1 1,651.0 Finland 614
Slide 19: 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 Hardware 4,809.7 5,324.4 5,953.5 7,088.0 6,146.4 6,139.5 5,377.2 Software 3,230.7 4,738.6 2,470.2 4,342.7 3,717.4 5,956.8 3,072.8 Product sales 8,040.4 10,063.0 8,423.7 11,430.7 9,863.9 12,096.3 8,
Slide 20: 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 Hardware 4,809.7 5,324.4 5,953.5 7,088.0 6,146.4 6,139.5 5,377.2 Software 3,230.7 4,738.6 2,470.2 4,342.7 3,717.4 5,956.8 3,072.8 Product sales 8,040.4 10,063.0 8,423.7 11,430.7 9,863.9 12,096.3
Slide 21: 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 Product sales 1,994.7 2,260.8 2,057.7 2,787.6 2,083.6 2,338.7 2,308.8 Services sales 549.6 566.7 520.9 624.2 610.8 635.7 557.5 Gross sales 2,544.3 2,827.5 2,578.6 3,411.7 2,694.4 2,974.3 2,866.4 P
Slide 22: 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 Product sales 3,599.3 4,619.0 3,734.4 5,016.6 4,022.0 5,278.5 3,207.4 Services sales 820.7 880.1 792.0 1,021.6 897.9 984.4 824.3 Gross sales 4,420.0 5,499.1 4,526.3 6,038.2 4,919.8 6,262.9 4,031.8
Slide 23: 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 Product sales 3,599.3 4,619.0 3,734.4 5,016.6 4,022.0 5,278.5 3,207.4 Services sales 833.9 893.3 800.8 1,021.6 897.9 984.4 824.3 Gross sales 4,433.2 5,512.3 4,535.2 6,038.2 4,919.8 6,262.9 4,03
Slide 24: 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 Product sales 3,412.1 4,415.0 3,536.3 4,767.6 3,944.3 5,347.8 3,080.7 Services sales 778.0 841.8 750.0 970.9 880.6 1,000.0 796.8 Gross sales 4,190.2 5,256.8 4,286.3 5,738.5 4,824.9 6,347.8 3,877.5
Slide 25: 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 Product sales 3,412.1 4,415.0 3,536.3 4,767.6 3,944.3 5,347.8 3,080.7 Services sales 790.6 854.4 758.4 970.9 880.6 1,000.0 796.8 Gross sales 4,202.7 5,269.4 4,294.7 5,738.5 4,824.9 6,347.8 3,87
Slide 26: 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 Product sales 1,237.6 1,707.4 1,215.1 1,697.3 1,651.6 1,899.7 1,076.9 Services sales 412.5 373.8 408.0 470.2 395.9 399.6 395.7 Gross sales 1,650.1 2,081.2 1,623.1 2,167.5 2,047.4 2,299.4 1,472.6
Slide 27: 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 Product sales 1,652.0 2,297.4 1,645.0 2,359.2 2,437.4 2,961.3 1,652.3 Services sales 550.7 503.9 551.6 654.2 584.2 625.1 605.5 Gross sales 2,202.7 2,801.3 2,196.6 3,013.4 3,021.6 3,586.4 2,257.8
Slide 28: 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 Product sales 78.3 79.7 88.3 103.7 98.8 101.0 93.9 Services sales 8.9 12.0 10.4 13.5 12.3 12.9 12.0 Gross sales 87.2 91.7 98.7 117.2 111.1 113.9 105.9 Product margin (%) 10.2% 10.9% 9.9% 10.4% 9.
Slide 29: 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 Product sales 78.3 79.7 88.3 103.7 98.8 101.0 93.9 Services sales 10.1 12.0 10.4 13.5 12.3 12.9 12.0 Gross sales 88.4 91.7 98.7 117.2 111.1 113.9 105.9 Product margin (%) 10.2% 10.9% 9.9% 10.4
Slide 30: 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 Product sales 777.9 799.0 888.2 1,071.4 1,084.9 1,176.8 1,071.4 Services sales 88.0 120.2 104.6 139.7 135.3 150.4 137.2 Gross sales 865.9 919.2 992.8 1,211.1 1,220.3 1,327.2 1,208.6 Product margi
Slide 31: 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 Product sales 777.9 799.0 888.2 1,071.4 1,084.9 1,176.8 1,071.4 Services sales 100.0 120.2 104.6 139.8 135.3 150.4 137.2 Gross sales 877.9 919.3 992.8 1,211.2 1,220.3 1,327.2 1,208.6 Product m
Slide 32: 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 Product sales 21.0 24.8 25.4 38.2 31.7 22.7 28.5 Services sales 10.9 11.0 12.3 15.3 13.4 14.4 13.8 Gross sales 31.8 35.8 37.7 53.5 45.1 37.0 42.3 Product margin (%) 13.3% 12.6% 11.4% 13.2% 10.7% 1
Slide 33: 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 Product sales 208.3 248.3 255.1 393.0 348.5 267.1 325.0 Services sales 107.8 110.5 123.9 158.0 147.3 167.3 156.8 Gross sales 316.1 358.8 379.1 551.0 495.8 434.4 481.8 Product margin (%) 13.3% 12.6
Slide 34: 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 Product sales 1,900.3 2,031.8 2,083.1 2,055.4 1,867.0 1,899.4 1,894.0 Services sales 194.6 198.3 210.9 230.6 238.3 265.1 265.5 Gross sales 2,095.0 2,230.1 2,294.0 2,286.0 2,105.3 2,164.6