Atea Asa · OSL:ATEA
Atea Asa — Q4 2013 Earnings Presentation
49 slides from Atea Asa's earnings presentation, Feb 5, 2014
Slide 1: Q4 2013 presentation
5 February 2014 Q4 2013 presentation Claus Hougesen, CEO
Slide 2: Group – Q4 2013 highlights
Group – Q4 2013 highlights • Revenue of NOK 6,846 million, up 8.3% ‒ Organic revenue up 0.9% in constant currency • EBITDA of NOK 361 million, up 3.4% • EBITDA margin of 5.3%, down from 5.5% • Executed operational efficiency programme according to plan • Operational cash flow of NOK 1,073 million •
Slide 3: Group – Full year 2013 highlights
Group – Full year 2013 highlights NOK million Q4 13 Q4 12 y-o-y FY 13 FY 12 y-o-y Total revenue 6,845.6 6,320.9 8.3% 22,095.8 20,930.3 5.6% EBITDA* 360.6 348.7 3.4% 800.3 824.1 -2.9% EBITDA margin 5.3% 5.5% - 3.6% 3.9% - * Before share based compensation, acquisition costs and restructuring • Full y
Slide 4: Market update 2013
Market update 2013 8,0% 7,5% 6,0% 5,3% 5,1% 4,0% 3,3% 2,4% 2,0% 1,5% 0,0% -0,5% -2,0% -1,6% -4,0% Hardware Software Services Total Market * Atea ** * Market growth in constant currency in the Nordics; Source: IDC ** Atea growth in constant currency in the Nordics • Hardware market still in decline •
Slide 5: Market outlook 2014
Market outlook 2014 6,0% 5,3% 5,3% 5,0% 4,0% 3,9% 4,0% 3,1% 3,3% 3,0% 2,0% 1,5% 1,0% 0,0% -1,0% -2,0% -1,6% Hardware Software Services Total 2013 2014 Note: Expected Blue Box market growth in the Nordics; Source: IDC • IDC expects a substantial positive shift in the hardware market • IDC expect that
Slide 6: Hardware segment
Hardware segment Revenue and growth Gross profit and gross margin 4 000 +9.2% 500 12.4% 13.2% 3 500 450 14.5% 13.7% -1.4% +3.0% 400 13.2% 13.3% 12.7% 12.7% 3 000 -3.4% 350 2 500 300 MNOK MNOK 2 000 250 1 500 200 150 1 000 100 500 50 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Comparable quarter Latest quarter Compa
Slide 7: Services segment
Services segment Revenue and growth Gross profit and gross margin 1 400 +11.4% 1 000 65.3% +10.1% 900 66.9% 65.9% 1 200 +7.2% +7.0% 800 68.6% 68.7% 66.4% 67.2% 1 000 700 67.3% 800 600 MNOK MNOK 500 600 400 400 300 200 200 100 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Comparable quarter Latest quarter Comparable q
Slide 8: Software segment
Software segment Revenue and growth Gross profit and gross margin 1 800 180 +3.4% 10.9% 10.5% 1 600 +10.5% 160 9.8% 1 400 10.0% 140 11.4% 1 200 +26.5% 120 11.9% 15.4% MNOK 1 000 MNOK 100 14.2% 800 +9.7% 80 600 60 400 40 200 20 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Comparable quarter Latest quarter Comparable
Slide 9: Operational efficiency programme
Operational efficiency programme Operational Operational costs efficiency • Executed operational efficiency programme according to plan • Annual reduction of cost base of app. MNOK 200* from the beginning of 2014 • Further reduction of cost base of app. MNOK 100 per year with full year effect from 2
Slide 10: Group – cash flow
Group – cash flow NOK million Q4 13 Q4 12 FY 13 FY 12 CF from operations 1,073.4 1,130.2 910.6 812.4 CF from capital expenditures -101.4 -90.7 -280.1 -246.9 CF from acquisitions 5.2 6.1 -79.1 -148.8 Dividend payments -412.4 - -973.6 -500.3 Net financial position -419.1 49.3 -419.1 49.3 • Full year 2
Slide 11: Cash conversion
Cash conversion • Operational cash flow on average constituted 109% of EBITDA through 2007-2013 • Capex on average constituted 1.0% of revenue through 2007-2013 • Free cash flow on average constituted 83% of EBITDA through 2007-2013 11
Slide 12: Completed acquisitions
Completed acquisitions • Acquired CRC in Riga, Latvia in Q4 • Acquisitions within blue box in the Nordics and Baltics continues to be part of the strategy plan • In 2013 Atea has completed 3 acquisitions with revenue of approx. NOK million 250 • Completed 50 acquisitions since 2007 • Average EV/EBIT
Slide 13: Countries
Countries ATCR
Slide 14: Norway – strong growth
Norway – strong growth NOK million Q4 13 Q4 12 y-o-y FY 13 FY 12 y-o-y Total revenue 2,080.7 1,921.8 8.3% 6,569.5 6,353.4 3.4% EBITDA* 117.8 105.6 11.5% 248,6 275.4 -9.7% EBITDA margin 5.7% 5.5% - 3.8% 4.3% - * Before share based compensation, acquisition costs and restructuring • Q4 revenue of NOK
Slide 15: Denmark – strong margin
Denmark – strong margin DKK million Q4 13 Q4 12 y-o-y FY 13 FY 12 y-o-y Total revenue 1,604.5 1,756.5 -8.7% 5,359.0 5,705.1 -6.1% EBITDA* 127.7 124.9 2.3% 278.1 280.9 -1.0% EBITDA margin 8.0% 7.1% - 5.2% 4.9% - * Before share based compensation, acquisition costs and restructuring • Q4 revenue of DK
Slide 16: Sweden – strong revenue growth
Sweden – strong revenue growth SEK million Q4 13 Q4 12 y-o-y FY 13 FY 12 y-o-y Total revenue 2,649.3 2,377.6 11.4% 8,816.0 7,727.9 14.1% EBITDA* 101.1 101.1 0.0% 239.6 234.0 2.4% EBITDA margin 3.8% 4.3% - 2.7% 3.0% - * Before share based compensation, acquisition costs and restructuring • Q4 revenue
Slide 17: Finland – challenging
Finland – challenging EUR million Q4 13 Q4 12 y-o-y FY 13 FY 12 y-o-y Total revenue 44.9 57.6 -22.1% 178.9 215.0 -16.8% EBITDA* -0.3 2.4 - 1.0 3.2 -68.7% EBITDA margin -0.7% 4.1% - 0.6% 1.5% - * Before share based compensation, acquisition costs and restructuring • Q4 revenue of EUR million 44.9, do
Slide 18: Baltics – strong margin
Baltics – strong margin EUR million Q4 13 Q4 12 y-o-y FY 13 FY 12 y-o-y Total revenue 26.2 26.8 -2.3% 86.9 86.7 0.1% EBITDA* 1.9 2.1 -10.0% 5.1 5.1 1.3% EBITDA margin 7.1% 7.7% - 5.9% 5.8% - * Before share based compensation, acquisition costs and restructuring • Q4 revenue of EUR million 26.2, down
Slide 19: Summary
Summary • Growth in revenue and EBITDA • Strong cash flow and maintaining financial strength to grow further • Executed operational efficiency programme – well positioned to improve earnings • The Board suggests to pay dividend of NOK 6.00 per share for 2013 19
Slide 20: Questions?
Questions? ATER ATER
Slide 21: Q4 2013 Fact pack
Q4 2013 Fact pack ATCR
Slide 22: Key numbers - Group (NOK million)
Key numbers - Group (NOK million) Q4 Q4 Full year Full year 2013 2012 2013 2012 Operating revenue (NOK in million) 6 845,6 6 320,9 22 095,8 20 930,3 Gross margin (%) 22,8 23,1 24,3 24,4 EBITDA (NOK in million) * 360,6 348,7 800,3 824,1 EBITDA margin (%) * 5,3 5,5 3,6 3,9 EBITDA (NOK in million) 275,
Slide 23: Consolidated statement of financial position - Group
Consolidated statement of financial position - Group (NOK million) NOK in million Note 31 Dec 2013 31 Dec 2012 ASSETS Property, plant and equipment 520,1 330,5 Deferred tax assets 1,6 557,6 580,2 Goodwill 3 132,4 2 832,5 Other intangible assets 325,6 330,3 Other long-term receivables 0,3 1,0 Non-cur
Slide 24: Employees - Group
Employees - Group Net committed headcount 31 Dec 2013 31 Dec 2012 Norway 1.667 1.604 Sweden 1.949 1.848 Denmark 1.432 1.488 Finland 357 339 Baltics 593 587 Logistics 192 178 Atea Global Services 298 207 Atea ASA 11 15 Atea Group 6.499 6.266 24
Slide 25: Financial performance actual – Segment
Financial performance actual – Segment (NOK million) (amounts in MNOK) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Norway 1 401,8 1 524,5 1 505,4 1 921,8 1 435,2 1 555,4 1 498,2 2 080,7 Sweden 1 462,7 1 721,5 1 419,7 2 033,6 1 784,5 2 128,6 1 589,5 2 447,7 Denmark 1 309,9 1 520,7 1 157,0 1 742,0
Slide 26: Financial performance proforma – Segment
Financial performance proforma – Segment (NOK million) (amounts in MNOK) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Norway 1 440,9 1 566,6 1 529,0 1 948,2 1 448,2 1 555,4 1 498,2 2 080,7 Sweden 1 491,6 1 746,1 1 439,8 2 063,1 1 801,7 2 128,8 1 589,7 2 447,8 Denmark 1 323,4 1 520,7 1 156,9 1 741
Slide 27: Income statement actual - Group
Income statement actual - Group (NOK million) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 2 897,3 2 841,6 2 831,5 3 566,4 2 856,4 2 744,1 2 915,4 3 893,3 Total software revenue 875,6 1 384,8 603,3 1 501,4 1 107,3 1 530,3 661,5 1 552,6 Products reve
Slide 28: Income statement proforma - Group
Income statement proforma - Group (NOK million) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 2 961,3 2 893,5 2 856,5 3 607,6 2 872,6 2 744,2 2 915,4 3 893,3 Total software revenue 880,8 1 388,0 605,2 1 504,3 1 109,0 1 530,3 661,5 1 552,7 Products re
Slide 29: Income statement actual – Norway
Income statement actual – Norway (NOK million) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 866,4 894,2 1 004,8 1 128,8 783,2 896,0 947,3 1 287,8 Total software revenue 179,4 261,0 154,6 362,2 256,7 248,1 201,1 366,2 Products revenue 1 045,8 1 155,1
Slide 30: Income statement proforma – Norway
Income statement proforma – Norway (NOK million) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 895,2 925,0 1 021,6 1 150,9 794,0 896,0 947,3 1 287,8 Total software revenue 181,2 262,1 155,0 362,2 256,7 248,1 201,1 366,2 Products revenue 1 076,4 1 187
Slide 31: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) (amounts in DKK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 853,0 817,5 730,6 1 084,4 819,5 700,4 702,2 977,4 Total software revenue 144,6 372,9 138,6 321,7 223,9 320,0 109,5 275,6 Products revenue 997,6 1 190,4 869,
Slide 32: Income statement proforma – Denmark (DKK million)
Income statement proforma – Denmark (DKK million) (amounts in DKK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 853,0 817,5 730,6 1 084,4 819,5 700,4 702,2 977,4 Total software revenue 145,4 372,9 138,6 321,7 223,9 320,0 109,5 275,6 Products revenue 998,3 1 190,4 86
Slide 33: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 870,4 831,0 723,5 1 075,6 816,4 716,9 748,8 1 066,5 Total software revenue 147,6 379,5 135,5 319,4 223,0 325,6 122,3 301,3 Products revenue 1 017,9 1 210,5
Slide 34: Income statement proforma – Denmark (NOK million)
Income statement proforma – Denmark (NOK million) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 870,4 831,0 723,5 1 075,6 816,4 716,9 748,8 1 066,5 Total software revenue 148,3 379,5 135,5 319,4 223,0 325,6 122,3 301,3 Products revenue 1 018,7 1 210,
Slide 35: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) (amounts in SEK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 1 001,5 961,0 1 004,5 1 176,4 1 169,7 1 007,7 1 069,5 1 320,1 Total software revenue 304,9 640,5 255,2 731,1 440,2 912,2 261,3 784,6 Products revenue 1 306,4
Slide 36: Income statement proforma – Sweden (SEK million)
Income statement proforma – Sweden (SEK million) (amounts in SEK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 1 010,6 968,3 1 009,8 1 186,6 1 175,6 1 007,7 1 069,5 1 320,1 Total software revenue 308,0 642,9 256,9 734,5 442,2 912,2 261,3 784,6 Products revenue 1 318
Slide 37: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 858,3 815,3 879,5 1 005,7 1 023,6 896,9 977,8 1 221,2 Total software revenue 261,3 544,9 226,9 626,0 385,2 807,6 247,6 722,9 Products revenue 1 119,6 1 360,2
Slide 38: Income statement proforma – Sweden (NOK million)
Income statement proforma – Sweden (NOK million) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 866,1 821,5 884,2 1 014,4 1 028,8 896,9 977,8 1 221,3 Total software revenue 263,9 547,0 228,4 628,9 387,0 807,6 247,6 722,9 Products revenue 1 130,0 1 368
Slide 39: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) (amounts in EUR million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 25,3 24,1 20,7 29,0 20,6 20,1 18,3 23,1 Total software revenue 37,1 24,6 9,4 22,9 31,6 19,2 9,2 15,9 Products revenue 62,4 48,7 30,1 52,0 52,2 39,3 27,5 39,
Slide 40: Income statement proforma – Finland (EUR million)
Income statement proforma – Finland (EUR million) (amounts in EUR million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 25,3 24,1 20,7 29,0 20,6 20,1 18,3 23,1 Total software revenue 37,1 24,6 9,4 22,9 31,6 19,2 9,2 15,9 Products revenue 62,4 48,7 30,1 52,0 52,2 39,3 27,5 3
Slide 41: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 191,8 181,9 152,8 214,4 153,0 153,3 145,9 189,0 Total software revenue 281,3 185,8 66,7 168,8 234,4 147,1 77,5 132,5 Products revenue 473,1 367,7 219,5 383,
Slide 42: Income statement proforma – Finland (NOK million)
Income statement proforma – Finland (NOK million) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 191,8 181,9 152,8 214,4 153,0 153,3 145,9 189,0 Total software revenue 281,3 185,8 66,7 168,8 234,4 147,1 77,5 132,5 Products revenue 473,1 367,7 219,5 38
Slide 43: Income statement actual – the Baltics (EUR million)
Income statement actual – the Baltics (EUR million) (amounts in EUR million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 15,2 16,4 13,8 19,1 12,3 13,1 13,7 17,8 Total software revenue 1,0 1,8 2,6 3,4 3,6 2,1 2,6 3,4 Products revenue 16,2 18,2 16,5 22,5 15,9 15,2 16,2 21,2
Slide 44: Income statement proforma – the Baltics (EUR million)
Income statement proforma – the Baltics (EUR million) (amounts in EUR million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 18,9 18,4 14,3 20,5 12,3 13,1 13,7 17,8 Total software revenue 1,0 1,8 2,6 3,4 3,6 2,1 2,6 3,4 Products revenue 19,8 20,2 17,0 23,9 15,9 15,2 16,2 21,
Slide 45: Income statement actual – the Baltics (NOK million)
Income statement actual – the Baltics (NOK million) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 115,6 123,8 102,0 141,0 91,4 99,8 108,1 144,7 Total software revenue 7,2 14,0 19,6 25,3 26,4 16,4 20,6 27,9 Products revenue 122,9 137,8 121,6 166,3 117
Slide 46: Income statement proforma – the Baltics (NOK million)
Income statement proforma – the Baltics (NOK million) (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 143,1 138,8 105,5 151,3 91,5 99,8 108,1 144,7 Total software revenue 7,2 14,0 19,6 25,3 26,4 16,4 20,6 27,9 Products revenue 150,3 152,7 125,1 176,6 1
Slide 47: Income statement actual – Shared services (NOK million)
Income statement actual – Shared services (NOK million)* (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 762,9 793,6 921,3 889,4 887,1 747,1 957,1 1 081,9 Total software revenue 10,0 3,0 2,5 4,6 1,9 2,6 1,1 2,0 Products revenue 772,9 796,6 923,8 894,1
Slide 48: Income statement proforma – Shared services (NOK million)
Income statement proforma – Shared services (NOK million)* (amounts in NOK million) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Total hardware revenue 762,9 793,6 921,3 889,4 887,1 747,1 957,1 1 081,9 Total software revenue 10,0 3,0 2,5 4,6 1,9 2,6 1,1 2,0 Products revenue 772,9 796,6 923,8 894,
Slide 49: ATCA
ATCA