Slide 1: Itera
ITERA
Slide 2: Q2 Report 2022 agenda
Q2 REPORT 2022 1. Highlights of the quarter 2. Business Review 3. Financial Review Arne Mjøs Bent Hammer 4. Outlook CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER 5. Q&A
Slide 3: Highlights Q2 2022
Q2 REPORT 2022 01 Highlights Q2 2022
Slide 4: Q2 in brief
Q2 REPORT 2022 Q2 in brief 22% The situation in Ukraine is Implementing three new Several new strategic wins Itera teams up with Microsoft stabilised and offices to scale and increasing global consulting Organic revenue we are ready up even higher sales pipeline for division to growth to continue ou
Slide 5: Key figures
Q2 REPORT 2022 Key figures 22% 23% 11.7% Organic revenue Growth in number Operating margin growth of employees Revenues Employees EBIT margin NOK million 2020 2021 2022 End of period 2020 2021 2022 % 2020 2021 2022 200 184 700 642 661 18% 176 180 16% 14.9 % 600 160 14% 140 500 11.7 % 12% 120 400 10%
Slide 6: Business review
Q2 REPORT 2022 02 Business review
Slide 7: Impact of Russia's invasion of Ukraine
Q2 REPORT 2022 Impact of Russia's invasion of Ukraine Key topic for NHO Annual Conference in May was the new security situation in Europe after the Russia’s invasion of Ukraine and the support for Ukraine. Arne Mjøs of Itera was the first top executive to visit Ukraine after the invasion and shared
Slide 8: Visiting Ukraine after the Russian invasion
Q2 REPORT 2022 Visiting Ukraine after the Russian invasion – As CEO, I visited our offices in Lviv and Kyiv in April and June and went over 2000 km by car through the Western part of Ukraine I am incredibly proud to witness the way our people of Itera in Ukraine have managed to keep the business run
Slide 9: A greeting from the Vice Prime Minister of Ukraine
Q2 REPORT 2022 A greeting from the Vice Prime Minister of Ukraine and Minister of Digital Transformation in Ukraine “ – Of course, it’s important to donate and help Ukrainian refugees. But my message will be the following: in order to quickly rebuild Ukraine’s economy, world shouldn’t be afraid of i
Slide 10: Itera for Energy: Powering a sustainable future
Q2 REPORT 2022 Itera for Energy: Powering a sustainable future Operate for the future Transform your workforce Transition to clean Reimagine energy Increase operational resiliency while Attract, train, and retain employees Achieve net-zero commitments Capitalize and expand your market generating val
Slide 11: Digital Factory at Scale for data-driven businesses
Q2 REPORT 2022 Digital Factory at Scale for data-driven businesses Innovation Faster business innovation through CUSTOMER BUSINESS & DIGITAL STRATEGY autonomous teams and adoption of cloud services Speed Business agility and reduced CUSTOMER ANALYTICS & DOMAIN time-to-market through efficient PRODUC
Slide 12: Nordic origin with an international approach
Q2 REPORT 2022 Nordic origin with an international approach Nordic origin. Global reach The Nordics is often positioned as digital and sustainable front-runner that show the way globally We are growing together with international customers and partners based on our ONE Itera model across borders. Re
Slide 13: New locations
Q2 REPORT 2022 New locations ▪ The 4th largest city of Slovakia with a population of ▪ The second-largest city in the Czech Republic ▪ The second-largest city in Poland approximately 80,000 with high talent pool due to tech universities ▪ Tier 1 city for IT talent – no scalability limits in ▪ 2 hour
Slide 14: Increasing supply capacity in Central and Eastern Europe
Q2 REPORT 2022 Increasing supply capacity in Central and Eastern Europe We are growing our capacity in Central Europe to accommodate new demand and transition out of Ukraine for a couple Slovakia Poland of customers. Czech Republic Slovakia After adapting the normal in Ukraine, we will continue Pola
Slide 15: A typical cloud journey
Q2 REPORT 2022 A typical cloud journey Creating a sustainable digital business starts with a modern cloud platform. 95% of new digital workloads will be deployed on cloud-native platforms by 2025. Agile, iterative approach Lite Discovery and Assessment Digital Strategy Execution 1 2 3 4 6 7 Discover
Slide 16: A new growth engine with increasing recurring revenue
Q2 REPORT 2022 A new growth engine with increasing recurring revenue There is a gradual shift taking place in the nature of the demand for managed services. Cloud Application Services is our economic investment case with gradually improving profitability during the next 3-12 months. New growth engin
Slide 17: Low Code at Itera
Q2 REPORT 2022 Low Code at Itera It's estimated that by 2030 there will be a shortage of about 85 million tech workers worldwide. Part of the solution is to democratise the creation of applications and access to data. Low Code platforms, like Microsoft Power Platform, aim to empower every developer
Slide 18: A unique and preferred partner of Microsoft
Q2 REPORT 2022 A unique and preferred partner of Microsoft In June 2022, Itera and Microsoft’s global consultancy division Industry Solutions Delivery (ISD) in Norway entered a unique cooperation agreement to increase sales and deliveries to selected customers. The agreement obliges both parties to
Slide 19: Developed sustainability dashboard for Storebrand
Q2 REPORT 2022 Developed sustainability dashboard for Storebrand Itera has assisted Storebrand in developing a new sustainability dashboard. The tool visualises how the pension savings of business customers score on sustainability. More and more companies have started to report on sustainability in
Slide 20: Modern digital registry services with IMDi
Q2 REPORT 2022 Modern digital registry services with IMDi The Directorate of Integration and Diversity (IMDi) and Itera have entered into a 2+2 years framework agreement with an expected value of 40-60 MNOK. The framework agreement entails that Itera will work with IMDi to develop and modernise digi
Slide 21: Order intake
Q2 REPORT 2022 Order intake Order intake from selected new and existing customers. Book-to-bill ratio*) of 1.1 in Q2 and 1.2 for the last 12 months *) The book-to-bill ratio is the ratio of orders received to the amount of revenue for a specific period for Itera units
Slide 22: Customer development
Q2 REPORT 2022 Customer development Revenue customers split (in MNOK) New business 100% 16 11 12 18 21 22 16 19 ▪ Existing customers accounted for 89.5% (84.5%) 23 80% of revenues in Q2 2022 60% ▪ New customers won over the past year generated 40% 105 98 124 126 127 118 136 160 164 revenues 20% of N
Slide 23: Skilled and innovative employees
Q2 REPORT 2022 Skilled and innovative employees 661 employees at the end of the quarter Number of employees end of quarter by shore 700 55% ▪ Up by 19 in the quarter 600 53% 500 ▪ Up by 122 (76) last twelve months 400 51% 49% 300 47% 200 100 45% Nearshore ratio of 54% (51%) 0 43% Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 24: Financial review
Q2 REPORT 2022 03 Financial review
Slide 25: Key financials
Q2 REPORT 2022 Key financials 2022 2021 Change 2022 2021 Change 2021 ▪ Growth of 22% fuelled by NOK Million 4-6 4-6 % 1-6 1-6 % FY volume increases of top Operating revenue 183.5 150.8 22% 359.5 295.3 22% 593.0 customers Gross profit 169.6 138.5 22% 331.7 271.0 22% 547.3 Personnel expenses 128.0 100
Slide 26: Revenue and earnings development
Q2 REPORT 2022 Revenue and earnings development EBIT MNOK margin 180 18% ▪ Strong sales growth year over year with 160 16% 2-year CAGR of 17.8% and an average of 12.5% EBIT margin 140 14% ▪ Quarterly figures are impacted by 120 12% number of working days net of vacations. Q2 2022 had 59 (59) days 10
Slide 27: Statement of cash flow
Q2 REPORT 2022 Statement of cash flow 2022 2021 2022 2021 2021 12 month rolling NOK Million 4-6 4-6 1-6 1-6 FY cash flow from operations (NOK Million) EBITDA 28.8 28.6 62.1 56.7 101.6 105 Change in balance sheet items (15.8) (4.7) (49.5) (32.3) (32.1) Net cash flow from operating activities 13.0 23.
Slide 28: Dividend and own shares
Q2 REPORT 2022 Dividend and own shares ▪ An ordinary dividend of NOK 0.20 per share for 1.20 2021 was paid in Q2. The Board is authorised 1.00 to decide on a supplementary dividend later in 0.80 the year NOK per share 0.60 ▪ Share price was NOK 12.80 at the end of June 2022, an change of -9% (-6% in
Slide 29: Statement of financial position
Q2 REPORT 2022 Statement of financial position ▪ Equity ratio of 25% (12%) Assets Equity and Liabilities per 30 June 2022 ▪ 28% (14%) excl. IFRS 16 250 Leasing Right-of-use 27 27 ▪ Cash balance of MNOK 27 200 assets (MNOK 15) Non-current 55 54 assets 155 Current ▪ Total balance increased by 150 liab
Slide 30: Outlook
(2 REPORT 2022 TERA 04 Outlook
Slide 31: Outlook
Q2 REPORT 2022 Outlook Regional expansion Microsoft Readiness to migrate Full commitment to Profitable growth in the Nordics and agreement and operate larger Ukraine as an and cash flow are Central Europe for generates more scale cloud invaluable source of key focus areas. access to more cloud journ
Slide 32: Q&A
Q2 REPORT 2022 05 Q&A
Slide 33: We stand with Ukraine
Slide 34: Top 20 shareholders
Q2 REPORT 2022 Top 20 shareholders No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS* 30.62 NOR 25,163,031 2 OP CAPITAL AS 5.60 NOR 4,605,072 3 GIP AS 5.09 NOR 4,185,000 4 SEPTIM CONSULTING AS 3.71 NOR 3,045,762 5 EIKESTAD AS 3.65 NOR 3,000,000 6 BOINVESTERING AS 3.39 NOR 2,786,968 7 GAMST INVEST A