Atea Asa · OSL:ATEA
Atea Asa — Q2 2013 Earnings Presentation
49 slides from Atea Asa's earnings presentation, Jul 12, 2013
Slide 1: Q2 2013 presentation
12 July 2013 Q2 2013 presentation Claus Hougesen, CEO
Slide 2: Group – Q2 2013 highlights
Group – Q2 2013 highlights • Revenue of MNOK 5,501.8, up 3.0% ‒ Organic revenue down 0.3% in constant currency • EBITDA of MNOK 140.4, down 9.0% • EBITDA margin of 2.6%, down from 2.9% • Operational cash flow of MNOK 158.2, up from MNOK 64.2 • Raised long term debt of MNOK 800 • Paid dividend of NOK
Slide 3: Group – H1 2013 highlights
Group – H1 2013 highlights MNOK Q2 13 Q2 12 y-o-y YTD 13 YTD 12 y-o-y Total revenue 5,501.8 5,339.7 3.0% 10,586.6 10,158.9 4.2% EBITDA* 140.4 154.3 -9.0% 281.3 317.5 -11.4% EBITDA margin 2.6% 2.9% - 2.7% 3.1% - * Before share based compensation and acquisition costs • H1 revenue of MNOK 10,586.6, up
Slide 4: Market update H1 2013
Market update H1 2013 15,0% 14,7% 10,0% 5,0% 4,4% 5,0% 2,3% 2,4% 0,0% -0,2% -5,0% -3,4% -4,5% -10,0% HW SW Services Total Market* Atea** * Market growth in constant currency in the Nordics; Source: IDC, June 2013 ** Organic growth in constant currency in Nordics • Tough market conditions in the hard
Slide 5: Market outlook H2 2013
Market outlook H2 2013 8,0% 5,7% 6,0% 5,0% 4,2% 3,7% 4,0% 2,7% 2,3% 2,0% 0,0% -0,2% -2,0% -4,0% -4,5% -6,0% Hardware Software Services Total H1 2013 H2 2013 Note:Expected Blue Box market growth in constant currency in the Nordics; Source: IDC , June 2013 • IDC expects better market conditions in the
Slide 6: Market outlook 2014 – 2017
Market outlook 2014 – 2017 8,0% 7,0% 6,0% 5,3% 5,0% 4,0% 3,5% 3,2% 3,0% 2,1% 2,0% 1,0% 0,0% Hardware Software Services Total Note:Expected Blue Box CAGR in constant currency in the Nordics; Source: IDC, June 2013 • IDC expects that the total market will grow at an annual average rate of 3.2% until 2
Slide 7: Software segment
Software segment Revenue and growth Gross profit and gross margin 1 800 180 +10.5% 10.9% 1 600 +8.1% 160 9.8% 9.7% 10.0% 1 400 140 11.4% 1 200 +26.5% 120 11.9% 1 000 100 MNOK MNOK 14.2% 800 80 15.1% +15.4% 600 60 400 40 200 20 - - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Comparable quarter Latest quarter Comparable
Slide 8: Services segment
Services segment Revenue and growth Gross profit and gross margin 1 400 900 +5.3% 65.9% 66.9% +10.1% 800 68.6% 1 200 +7.2% 63.6% 66.4% 67.3% 68.7% +12.0% 700 1 000 600 64.5% 800 500 MNOK MNOK 600 400 300 400 200 200 100 - - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Comparable quarter Latest quarter Comparable quarter
Slide 9: Hardware segment
Hardware segment Revenue and growth Gross profit and gross margin 4 500 600 4 000 13.5% -9.5% 500 13.2% 3 500 14.5% 3 000 +5.5% -1.4% 400 13.3% 13.2% 13.7% -3.4% 12.7% 13.3% 2 500 MNOK MNOK 300 2 000 1 500 200 1 000 100 500 - - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Comparable quarter Latest quarter Comparable qua
Slide 10: Group – cash flow
Group – cash flow MNOK Q2 13 Q2 12 YTD 13 YTD 12 CF from operations 158.2 64.2 -65.9 -357.3 CF from capital expenditures -57.0 -56.9 -134.1 -107.6 CF from acquisitions -4.9 -42.9 -82.8 -107.0 CF from equity transactions -560.0 -491.0 -526.4 -479.8 Net financial position -772.8 -844.3 -772.8 -844.3 •
Slide 11: Completed acquisitions
Completed acquisitions • Acquisitions within blue box in the Nordics and Baltics is part of the 30:15:1.8 plan • In 2013 Atea has completed 2 acquisitions with revenue of approx. MNOK 230 • In 2012 Atea completed 5 acquisitions with revenue of approx. MNOK 320 • In 2011 Atea completed 7 acquisitions
Slide 12: Countries
Countries ATCR
Slide 13: Norway – strong growth in services
Norway – strong growth in services MNOK Q2 13 Q2 12 y-o-y YTD 13 YTD 12 y-o-y Total revenue 1,555.4 1,524.5 2.0% 2,990.6 2,926.2 2.2% EBITDA* 52.1 57.5 -9.5% 85.4 109.1 -21.8% EBITDA margin 3.3% 3.8% - 2.9% 3.7% - * Before share based compensation and acquisition costs • Q2 revenue of MNOK 1,555.4,
Slide 14: Denmark – seasonal decline
Denmark – seasonal decline MDKK Q2 13 Q2 12 y-o-y YTD 13 YTD 12 y-o-y Total revenue 1,326.3 1,495.5 -11.3% 2,663.0 2,779.2 -4.2% EBITDA* 35.2 43.8 -19.6% 91.7 99.1 -7.4% EBITDA margin 2.7% 2.9% - 3.4% 3.6% - * Before share based compensation and acquisition costs • Q2 revenue of MDKK 1,326.3, down 1
Slide 15: Sweden – strong performance
Sweden – strong performance MSEK Q2 13 Q2 12 y-o-y YTD 13 YTD 12 y-o-y Total revenue 2,399.4 2,027.1 18.4% 4,438.6 3,733.8 18.9% EBITDA* 50.4 46.6 8.3% 103.6 103.7 -0.1% EBITDA margin 2.1% 2.3% - 2.3% 2.8% - * Before share based compensation and acquisition costs • Q2 revenue of MSEK 2,399.4, up 18.
Slide 16: Finland – maintaining margin
Finland – maintaining margin MEUR Q2 13 Q2 12 y-o-y YTD 13 YTD 12 y-o-y Total revenue 44.6 54.5 -18.1% 101.6 122.3 -16.9% EBITDA* 0.5 0.6 -16.7% 1.2 0.7 61.1% EBITDA margin 1.1% 1.1% - 1.2% 0.6% - * Before share based compensation and acquisition costs • Q2 revenue of MEUR 44.6, down 18.1% - Product
Slide 17: Baltic – strong margin
Baltic – strong margin MEUR Q2 13 Q2 12 y-o-y YTD 13 YTD 12 y-o-y Total revenue 20.4 22.3 -8.4% 39.6 40.3 -1.7% EBITDA* 1.1 1.1 -0.4% 1.6 2.0 -21.0% EBITDA margin 5.4% 5.0% - 4.0% 5.0% - * Before share based compensation and acquisition costs • Q2 revenue of MEUR 20.4, down 8.4% - Product revenue do
Slide 18: Operational excellence, service & consulting
2015 +20% Operational excellence Service & consulting Customer opportunities Atea DNA 2011 16.1% 2007 10.6% 18
Slide 19: Summary
Summary • Continued strong development within software and services • Challenging market conditions within hardware • Strong cash flow and maintaining financial strength to grow further • Extraordinary dividend of NOK 4.00 per share in November 2013 19
Slide 20: Questions?
Questions? ATER ATER
Slide 21: Q2 2013 Fact pack
Q2 2013 Fact pack ATCR
Slide 22: Key numbers - Group (MNOK)
Key numbers - Group (MNOK) Q2 Q2 H1 H1 Full year 2013 2012 2013 2012 2012 Operating revenue (NOK in million) 5 501,8 5 339,7 10 586,6 10 158,9 20 930,3 Gross margin (%) 24,3 23,7 24,7 24,7 24,4 EBITDA (NOK in million) * 140,4 154,3 281,3 317,5 824,1 EBITDA margin (%) 2,6 2,9 2,7 3,1 3,9 EBIT (NOK in
Slide 23: Consolidated statement of financial position - Group (MNOK)
Consolidated statement of financial position - Group (MNOK) NOK in million Note 30 Jun 2013 30 Jun 2012 31 Dec 2012 ASSETS Property, plant and equipment 398,3 248,3 330,5 Deferred tax assets 1,6 580,2 517,0 580,2 Goodwill 3 010,7 2 837,8 2 832,5 Other intangible assets 347,7 328,4 330,3 Other long-t
Slide 24: Employees - Group
Employees - Group Net commited HC (own) rollforward 30 Jun 2013 30 Jun 2012 Norway 1 696 1 556 Sweden 1 965 1 887 Denmark 1 529 1 549 Finland 354 348 Baltics 602 523 Logistics 189 184 Atea Global Services 237 161 Atea ASA 16 13 Atea Group 6 588 6 221 24
Slide 25: Financial performance actual – Segment (MNOK)
Financial performance actual – Segment (MNOK) (amounts in MNOK) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Norway 1 401,8 1 524,5 1 505,4 1 921,8 1 435,2 1 555,4 Sweden 1 462,7 1 721,5 1 419,7 2 033,6 1 784,5 2 128,6 Denmark 1 309,9 1 520,7 1 157,0 1 742,0 1 331,7 1 354,7 Finland 514,8 411,4 256,4 424,8 42
Slide 26: Financial performance proforma – Segment (MNOK)
Financial performance proforma – Segment (MNOK) (amounts in MNOK) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Norway 1 440,9 1 566,6 1 529,0 1 948,2 1 448,2 1 555,4 Sweden 1 491,6 1 746,1 1 439,8 2 063,1 1 801,7 2 128,8 Denmark 1 323,4 1 520,7 1 156,9 1 741,9 1 331,7 1 354,7 Finland 514,8 411,4 256,4 424,8
Slide 27: Income statement actual - Group (MNOK)
Income statement actual - Group (MNOK) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 2 897,3 2 841,6 2 831,5 3 566,4 2 856,4 2 744,1 Total software revenue 875,6 1 384,8 603,3 1 501,4 1 107,3 1 530,3 Products revenue 3 772,9 4 226,3 3 434,8 5 067,8 3 963,7 4 274
Slide 28: Income statement proforma - Group (MNOK)
Income statement proforma - Group (MNOK) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 2 961,3 2 893,5 2 856,5 3 607,6 2 872,6 2 744,2 Total software revenue 880,8 1 388,0 605,2 1 504,3 1 109,0 1 530,3 Products revenue 3 842,1 4 281,5 3 461,7 5 111,9 3 981,6 4 2
Slide 29: Income statement actual – Norway (MNOK)
Income statement actual – Norway (MNOK) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 866,4 894,2 1 004,8 1 128,8 783,2 896,0 Total software revenue 179,4 261,0 154,6 362,2 256,7 248,1 Products revenue 1 045,8 1 155,1 1 159,4 1 491,0 1 039,9 1 144,2 Total servic
Slide 30: Income statement proforma – Norway (MNOK)
Income statement proforma – Norway (MNOK) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 895,2 925,0 1 021,6 1 150,9 794,0 896,0 Total software revenue 181,2 262,1 155,0 362,2 256,7 248,1 Products revenue 1 076,4 1 187,0 1 176,6 1 513,1 1 050,8 1 144,2 Total serv
Slide 31: Income statement actual – Denmark (MDKK)
Income statement actual – Denmark (MDKK) (amounts in DKK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 853,0 817,5 730,6 1 084,4 819,5 700,4 Total software revenue 144,6 372,9 138,6 321,7 223,9 320,0 Products revenue 997,6 1 190,4 869,2 1 406,1 1 043,4 1 020,4 Total services re
Slide 32: Income statement proforma – Denmark (MDKK)
Income statement proforma – Denmark (MDKK) (amounts in DKK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 853,0 817,5 730,6 1 084,4 819,5 700,4 Total software revenue 145,4 372,9 138,6 321,7 223,9 320,0 Products revenue 998,3 1 190,4 869,2 1 406,1 1 043,4 1 020,4 Total services
Slide 33: Income statement actual – Denmark (MNOK)
Income statement actual – Denmark (MNOK) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 870,4 831,0 723,5 1 075,6 816,4 716,9 Total software revenue 147,6 379,5 135,5 319,4 223,0 325,6 Products revenue 1 017,9 1 210,5 859,0 1 395,0 1 039,5 1 042,5 Total services
Slide 34: Income statement proforma – Denmark (MNOK)
Income statement proforma – Denmark (MNOK) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 870,4 831,0 723,5 1 075,6 816,4 716,9 Total software revenue 148,3 379,5 135,5 319,4 223,0 325,6 Products revenue 1 018,7 1 210,5 859,0 1 395,0 1 039,5 1 042,5 Total service
Slide 35: Income statement actual – Sweden (MSEK)
Income statement actual – Sweden (MSEK) (amounts in SEK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 1 001,5 961,0 1 004,5 1 176,4 1 169,7 1 007,7 Total software revenue 304,9 640,5 255,2 731,1 440,2 912,2 Products revenue 1 306,4 1 601,5 1 259,7 1 907,5 1 609,9 1 919,9 Total
Slide 36: Income statement proforma – Sweden (MSEK)
Income statement proforma – Sweden (MSEK) (amounts in SEK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 1 010,6 968,3 1 009,8 1 186,6 1 175,6 1 007,7 Total software revenue 308,0 642,9 256,9 734,5 442,2 912,2 Products revenue 1 318,6 1 611,2 1 266,7 1 921,1 1 617,8 1 919,9 Tota
Slide 37: Income statement actual – Sweden (MNOK)
Income statement actual – Sweden (MNOK) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 858,3 815,3 879,5 1 005,7 1 023,6 896,9 Total software revenue 261,3 544,9 226,9 626,0 385,2 807,6 Products revenue 1 119,6 1 360,2 1 106,4 1 631,7 1 408,8 1 704,5 Total servic
Slide 38: Income statement proforma – Sweden (MNOK)
Income statement proforma – Sweden (MNOK) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 866,1 821,5 884,2 1 014,4 1 028,8 896,9 Total software revenue 263,9 547,0 228,4 628,9 387,0 807,6 Products revenue 1 130,0 1 368,5 1 112,6 1 643,3 1 415,7 1 704,5 Total serv
Slide 39: Income statement actual – Finland (MEUR)
Income statement actual – Finland (MEUR) (amounts in EUR million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 25,3 24,1 20,7 29,0 20,6 20,1 Total software revenue 37,1 24,6 9,4 22,9 31,6 19,2 Products revenue 62,4 48,7 30,1 52,0 52,2 39,3 Total services revenue 5,5 5,8 5,0 5,6 4,9 5,3
Slide 40: Income statement proforma – Finland (MEUR)
Income statement proforma – Finland (MEUR) (amounts in EUR million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 25,3 24,1 20,7 29,0 20,6 20,1 Total software revenue 37,1 24,6 9,4 22,9 31,6 19,2 Products revenue 62,4 48,7 30,1 52,0 52,2 39,3 Total services revenue 5,5 5,8 5,0 5,6 4,9 5
Slide 41: Income statement actual – Finland (MNOK)
Income statement actual – Finland (MNOK) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 191,8 181,9 152,8 214,4 153,0 153,3 Total software revenue 281,3 185,8 66,7 168,8 234,4 147,1 Products revenue 473,1 367,7 219,5 383,2 387,5 300,4 Total services revenue 41,7
Slide 42: Income statement proforma – Finland (MNOK)
Income statement proforma – Finland (MNOK) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 191,8 181,9 152,8 214,4 153,0 153,3 Total software revenue 281,3 185,8 66,7 168,8 234,4 147,1 Products revenue 473,1 367,7 219,5 383,2 387,5 300,4 Total services revenue 41,
Slide 43: Income statement actual – the Baltics (MEUR)
Income statement actual – the Baltics (MEUR) (amounts in EUR million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 15,2 16,4 13,8 19,1 12,3 13,1 Total software revenue 1,0 1,8 2,6 3,4 3,6 2,1 Products revenue 16,2 18,2 16,5 22,5 15,9 15,2 Total services revenue 1,8 4,1 3,1 4,3 3,4 5,2
Slide 44: Income statement proforma – the Baltics (MEUR)
Income statement proforma – the Baltics (MEUR) (amounts in EUR million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 18,9 18,4 14,3 20,5 12,3 13,1 Total software revenue 1,0 1,8 2,6 3,4 3,6 2,1 Products revenue 19,8 20,2 17,0 23,9 15,9 15,2 Total services revenue 2,4 4,5 3,3 4,4 3,4 5,
Slide 45: Income statement actual – the Baltics (MNOK)
Income statement actual – the Baltics (MNOK) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 115,6 123,8 102,0 141,0 91,4 99,8 Total software revenue 7,2 14,0 19,6 25,3 26,4 16,4 Products revenue 122,9 137,8 121,6 166,3 117,8 116,1 Total services revenue 14,0 30,7
Slide 46: Income statement proforma – the Baltics (MNOK)
Income statement proforma – the Baltics (MNOK) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 143,1 138,8 105,5 151,3 91,5 99,8 Total software revenue 7,2 14,0 19,6 25,3 26,4 16,4 Products revenue 150,3 152,7 125,1 176,6 117,9 116,1 Total services revenue 18,6 33
Slide 47: Income statement actual – Shared services (MNOK)
Income statement actual – Shared services (MNOK)* (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 762,9 793,6 921,3 889,4 887,1 747,1 Total software revenue 10,0 3,0 2,5 4,6 1,9 2,6 Products revenue 772,9 796,6 923,8 894,1 888,9 749,7 Total services revenue 29,5 2
Slide 48: Income statement proforma – Shared services (MNOK)
Income statement proforma – Shared services (MNOK)* (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Total hardware revenue 762,9 793,6 921,3 889,4 887,1 747,1 Total software revenue 10,0 3,0 2,5 4,6 1,9 2,6 Products revenue 772,9 796,6 923,8 894,1 888,9 749,7 Total services revenue 29,5
Slide 49: ATCA
ATCA