Slide 1: 2023
2023
Slide 2: Q4 Report 2023 agenda
Q4 REPORT 2023 ITERA | 02 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 Q4 2023
Q4 REPORT 2023 ITERA | 03 01 Highlights Q4 2023
Slide 4: Q4 in brief
Q4 REPORT 2023 ITERA | 04 Q4 in brief 8% While the pace of spending and the overall business Strong demand in the green transition and areas like cloud Seasonal variations in order intake with book- to-bill of 1.7 in Q4 and Our operation in Ukraine is running as normal, with increasing interests lan
Slide 5: Key figures
Q4 REPORT 2023 ITERA | 05 Key figures Q4 FY Q4 Q4 FY 8% 18% 9% 9.5% 9.3% Organic revenue Growth in number Adj. EBIT margin growth of employees last 12 months
Slide 6: Business review
Q4 REPORT 2023 ITERA | 06 02 Business review
Slide 7: While the pace of spending has changed, the fundamentals have not
Q4 REPORT 2023 ITERA | 07 While the pace of spending has changed, the fundamentals have not Digital transformation AI everywhere Shifting business models ▪ Cloud towards business necessity ▪ Democratized Generative AI ▪ Everything as a service intensifies ▪ Intelligent applications ▪ The drive to au
Slide 8: We are specialists in sustainable digital transformation
Q4 REPORT 2023 ITERA | 08 We are specialists in sustainable digital transformation Nordic origin. Global reach. 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
Slide 9: Our steady growth organic model
Q4 REPORT 2023 ITERA | 09 Our steady growth organic model We have built a strong international ONE Packaged offerings and Speed, reusability industrialized services and subscription Itera operating model and will see more Customer-centric of divergence in the linearity between and selected headcount
Slide 10: Our priorities in 2024
Q4 REPORT 202 ITERA | 10 Our priorities in 2024 1 Strengthen demand 2 Leverage Digital 3 Explore and 4 Build on our strong generation through Factory and cloud capitalize on growth position to grow customer squads journeys opportunities in data, outside Norway Low-Code and AI Being smart in cost dis
Slide 11: The next era: We shape AI and AI shapes us
Q4 REPORT 2023 ITERA | 11 ITERA The next era: We shape AI and AI shapes us We are assisting numerous customers for setting goals for using AI to ensure External Customer-Facing that they will be in the best competitive position for the short-term (Everyday AI) and long-term (Game-changing AI). Every
Slide 12: Itera's AI toolbox for increased efficiency
Q4 REPORT 2023 ITERA | 12 Itera’s AI toolbox for increased efficiency Itera’s data and AI experts have been working on establishing a proprietary platform for generative AI throughout Q4. The platform will offer efficient configuration of advanced and specialised AI assistants, which will both be ut
Slide 13: Improving operational efficiency with Generative AI
Q4 REPORT 2023 ITERA | 13 Improving operational efficiency with Generative AI Recent advancements in generative AI have led forward-thinking companies like BAHR, one of Norway's Tier 1 law firms, to be proactive in exploring how technology such as LLM-models can be used to increase value creation, i
Slide 14: Exploring the potential of AI in the Icelandic Fintech community
Q4 REPORT 2023 ITERA | 14 Exploring the potential of AI in the Icelandic Fintech community Together with Reykjavik Fintech Cluster, we invited the Icelandic financial services community to a breakfast seminar called "The AI Advantage", highlighting trends and players pushing the frontiers of digital
Slide 15: Transforming power grid monitoring with AI
Q4 REPORT 2023 ITERA | 15 Transforming power grid monitoring with AI Laki Power, an Icelandic company, partnered with Itera to enhance ice monitoring services through machine learning, improving icing forecasts and real-time ice-load measurements. ▪ Laki Power creates line-powered monitoring systems
Slide 16: GenAI supercharges legacy modernization
Q4 REPORT 2023 ITERA | 16 GenAI supercharges legacy modernization – By 2027, GenAI tools will be used to explain legacy business applications and create appropriate replacements, reducing modernization costs by 70%. Rajib Gupta, Anne Thomas, Howard Dodd, Svetlana Sicular and Van Baker Source: Gartne
Slide 17: Digital Factory at Scale: Doing more with less
Q4 REPORT 2023 ITERA | 17 Digital Factory at Scale: Doing more with less 20-30% Typically, the speed and throughput are increased by CUSTOMER BUSINESS & DIGITAL STRATEGY 20-30% or more compared to staff augmentation ANALYTICS & DIGITAL DIGITAL Innovation Faster business innovation PRODUCT 1 PRODUCT
Slide 18: Bergen Chamber of Commerce Annual Conference
Q4 REPORT 2023 ITERA | 18 Bergen Chamber of Commerce Annual Conference Itera was invited to the 2023 Annual Conference held by Bergen Chamber of Commerce and Industry at Grieghallen. Arne Mjøs spoke about our commitment to and support for Ukraine, highlighting how the Western Norway region has a uni
Slide 19: Itera represented at COP28
Q4 REPORT 2023 ITERA | 19 Itera represented at COP28 Especially invited by the Ukrainian government, Itera was represented by Jon Erik Høgberg at COP28, the 28th United Nations Climate Change conference held in Dubai. Together with the EU, Ukraine has created an ambition to become the new green ener
Slide 20: Meeting President Zelensky in Oslo
Q4 REPORT 2023 ITERA | 20 Meeting President Zelensky in Oslo President Volodymyr Zelensky met 14 Norwegian companies in Oslo to discuss how Norwegian businesses can contribute to the reconstruction of Ukraine. The reconstruction of Ukraine will require enormous efforts over a long period of time. Th
Slide 21: Order intake
Q4 REPORT 2023 ITERA | 21 Order intake Order intake from selected new and existing customers. Book-to-bill ratio*) of 1.7 in Q4 and 1.0 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
Q4 REPORT 2023 ITERA | 22 Customer development New business Revenue customers split (in MNOK) ▪ Existing customers accounted for 93.9% (88.2%) of revenues in Q4 2023 ▪ New customers won over the past year generated revenues of NOK 13.5 (24.3) million in Q4 2023 (6.1% share) Good visibility ▪ Share o
Slide 23: Skilled and innovative employees
Q4 REPORT 2023 ITERA | 23 Skilled and innovative employees 762 employees at the end of the quarter Number of employees end of quarter by shore ▪ Up by 60 (81) last twelve months ▪ 65% of the FTE growth in the Nordics Nearshore ratio of 51% (52%) ▪ Our distributed delivery model of onshore and nearsh
Slide 24: Financial review
Q4 REPORT 2023 ITERA | 24 03 Financial review
Slide 25: Key financials
Q4 REPORT 2023 ITERA | 25 Key financials 2023 2022 Change 2023 2022 Change ▪ Organic revenue growth of 8% NOK Million 10-12 10-12 % 1-12 1-12 % ▪ Personnel expenses driven by Operating revenue 222.1 205.5 8% 871.6 735.8 18% FTE growth, NOK depreciation, Gross profit 206.2 191.9 7% 813.7 684.2 19% sa
Slide 26: Revenue and earnings development
Q4 REPORT 2023 ITERA | 26 Revenue and earnings development Last 12-months growth and margin Strong sales growth year over year with 2-year 1 000 20.0 % CAGR of 21.2% and an average of 9.9% 900 18.0 % adjusted EBIT margin 800 16.0 % Opportunities for margin expansion 700 14.0 % ▪ Normalization of uti
Slide 27: Statement of cash flow
Q4 REPORT 2023 ITERA | 27 Statement of cash flow 2023 2022 2023 2022 12 month rolling cash flow NOK Million 10-12 10-12 1-12 1-12 from operations (NOK Million) EBITDA 26.5 28.2 110.7 109.0 Change in balance sheet items 30.6 13.2 (14.9) (32.9) Net cash flow from operating activities 57.2 41.4 95.7 76
Slide 28: Dividend and own shares
Q4 REPORT 2023 ITERA | 28 Dividend and own shares ▪ A supplementary dividend of NOK 0.40 per share for 2022 to paid on 10 Nov. Proposed ordinary dividend of NOK 0.40 per share for 2023 ▪ Share price was NOK 12.05 at the end of Dec 2023, a change of -3% incl. dividends from NOK 13.20 at the end of De
Slide 29: Statement of financial position
Q4 REPORT 2023 ITERA | 29 Statement of financial position ▪ Equity ratio of 16% (21%) Assets Equity and Liabilities per 31 Dec 2023 ▪ 21% (24%) excl. IFRS 16 Leasing ▪ Right-of-use assets up Right-of-use MNOK 46 from new facility assets agreements Non-current assets Current liabilities ▪ Cash balanc
Slide 30: Outlook
Q4 REPORT 2023 ITERA | 30 04 Outlook
Slide 31: Outlook
Q4 REPORT 2023 ITERA | 31 Outlook Underlying strong Continued attention Readiness to migrate Connecting Ukraine Profitable growth demand for digital to business and operate larger and the Nordics to and cash flow are transformation optimization to scale cloud enable the green key focus areas. throug
Slide 32: Q&A
Q4 REPORT 2023 ITERA | 32 05 Q&A
Slide 33: Top 20 shareholders
Q4 REPORT 2023 ITERA | 33 Top 20 shareholders No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS 33.29 NOR 27 363 031 2 OP CAPITAL AS 5.64 NOR 4 635 242 3 GIP AS 5.23 NOR 4 300 000 4 SEPTIM CONSULTING AS 4.83 NOR 3 970 874 5 BOINVESTERING AS 3.59 NOR 2 947 862 6 GAMST INVEST AS 3.15 NOR 2 590 070 7
Slide 34: We stand with Ukraine