Atea Asa · OSL:ATEA
Atea Asa — Q1 2018 Earnings Presentation
31 slides from Atea Asa's earnings presentation, Apr 26, 2018
Slide 1: Q1 2018 Presentation
Q1 2018 PRESENTATION 26 APRIL 2018
Slide 2: Highlights – Q1 2018
Highlights – Q1 2018 Rapid growth in revenue and profitability, spread across nearly all geographies REVENUE of NOK 8.3 billion (up 13.3%) Change in currency rates positively impacts revenue growth by 3.5% EBIT of NOK 123 million (up 16.3%) EBIT margin of 1.5% Pretax profit of NOK 111 million (up 29
Slide 3: Financial summary
Financial summary Higher demand for product sales drives increased revenue and EBIT CURRENCY: MNOK Q1 18 Q1 17 Growth • Revenue growth driven by increased sales Revenue 8,340 7,360 13.3% of hardware (up 10.7%) and software (up 26.6%) Gross profit 1,838 1,694 8.5% • Reduced GM%, as revenue mix shifts
Slide 4: Norway
Norway Solid financial results based on rapid growth in product sales REVENUE EBIT +9.6% +14.7% 1,901 Product revenue +11.8% 1,735 43 NOK in million 37 Service revenue +3.2% NOK in million Gross profit +7.3% Operating expenses +6.7% Q1 17 Q1 18 Q1 17 Q1 18
Slide 5: Sweden
Sweden Very strong sales across all lines of business drives exceptional growth in EBIT REVENUE EBIT +20.5% +32.3% Product revenue +22.5% 3,430 99 2,846 Service revenue +11.2% 75 SEK in million SEK in million Gross profit +13.4% Operating expenses +10.9% Q1 17 Q1 18 Q1 17 Q1 18
Slide 6: Denmark
Denmark Lower revenue partly offset by reduced personnel expenses REVENUE EBIT -6.6% 16 MDKK 1,664 Product revenue -3.4% 1,555 7 Service revenue -17.3% DKK in million DKK in million Gross profit -12.9% Q1 17 Q1 18 Operating expenses -8.6% -8 Q1 17 Q1 18
Slide 7: Finland
Finland New frame agreements drive continued revenue and EBIT growth REVENUE EBIT +7.2% +16.7% Product revenue +6.9% 91 85 1.2 1.0 Service revenue +9.9% EUR in million EUR in million Gross profit +4.9% Operating expenses +3.6% Q1 17 Q1 18 Q1 17 Q1 18
Slide 8: Baltics
Baltics Very strong revenue growth. EBIT impacted by one-time cost of EUR 0.3 million (court judgement on legal dispute from 2015) REVENUE EBIT +21.7% 70 KEUR Product revenue +25.6% 0.1 26 Service revenue +13.5% 22 EUR in million EUR in million Gross profit +9.5% 0.0 Operating expenses +8.3% Q1 17 Q
Slide 9: Cash flow from operations
Cash flow from operations Cash flow from operations was an outflow of NOK 841 million, based on seasonal fluctuations in working capital 1,765 Cash flow from operations is concentrated in Q4, and is seasonally negative in the first quarter Net working capital increased in Q1 189 2018 compared with l
Slide 10: Status in Denmark
Status in Denmark Legal case • Atea A/S (Atea Denmark) is under prosecution as a legally responsible entity for alleged bribery and embezzlement carried out by four former employees in a time period from 2008-2014 • Court case started October 2017. Verdict expected in June 2018. • Under Danish law,
Slide 11: Market opportunities
Market opportunities Key areas for growth • Market for IT infrastructure appears stronger than in prior years. Greater willingness to invest based on improved economic conditions. Companies redefining their products, services and business processes with IT solutions. • Major growth opportunities wit
Slide 12: Summary – Q1 2018
Summary – Q1 2018 Strong growth in profitability, driven by higher product sales across nearly all markets REVENUE Revenue of NOK 8.3 billion, up 13.3% PBT Profit before tax of NOK 111 million, up 29.3% EBIT Cash flow from operations of NOK -841 million, EBIT of NOK 123 million, up 16.3% CASH FLOW c
Slide 13: Q1 2018 Fact Pack
ATCR quae FACT PACK
Slide 14: Highlights - Group
Highlights - Group Q1 Q1 Full year NOK in million 2018 2017 2017 Group revenue 8,340 7,360 32,438 Gross margin (%) 22.0% 23.0% 22.3% EBIT 123 105 799 EBIT margin (%) 1.5% 1.4% 2.5% Net profit 87 69 543 Earnings per share (NOK) 0.81 0.65 5.10 Diluted earnings per share (NOK) 0.80 0.64 5.00 Cash flow
Slide 15: Consolidated statement of financial position - Group
Consolidated statement of financial position - Group NOK in million 31 Mar 2018 31 Mar 2017 31 Dec 2017 ASSETS Property, plant and equipment 614 658 628 Deferred tax assets 482 561 487 Goodwill 3,755 3,683 3,845 Other intangible assets 254 291 273 Investment in associated companies 11 0 12 Other lon
Slide 16: Full-time employees - Group
Full-time employees - Group FTEs, end of period 31 Mar 2018 31 Mar 2017 31 Dec 2017 Norway 1,591 1,561 1,573 Sweden 2,319 2,114 2,248 Denmark 1,468 1,582 1,475 Finland 326 341 318 Baltics 675 720 678 Logistics 223 216 222 Atea Global Services 353 360 381 Atea ASA 10 10 9 AppXite 69 0 0 Atea Group 7,
Slide 17: Financial performance actual – Segment
Financial performance actual – Segment NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Norway 1,734.8 1,910.0 1,863.6 2,762.4 1,901.4 Sweden 2,690.0 3,408.7 2,521.8 3,758.6 3,314.4 Denmark 2,010.8 2,257.7 1,659.7 2,490.4 2,011.3 Finland 760.5 632.7 417.2 626.5 873.9 The Baltics 193.0 238.4 228.5 419.9
Slide 18: Income statement actual - Group (NOK million)
Income statement actual - Group (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 4,049.9 4,085.5 4,067.0 5,840.1 4,484.1 Software revenue 1,839.4 2,789.5 1,131.4 2,431.0 2,328.8 Products revenue 5,889.3 6,875.0 5,198.4 8,271.1 6,812.9 Total services revenue 1,470.4 1,533.5
Slide 19: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 977.2 1,055.7 1,147.9 1,745.9 1,065.1 Software revenue 313.2 405.8 280.9 516.7 377.7 Products revenue 1,290.4 1,461.4 1,428.8 2,262.6 1,442.7 Total services revenue 444.4 448.6 434.9 499.8 45
Slide 20: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) DKK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 965.3 782.8 756.4 1,105.4 835.7 Software revenue 319.1 643.4 188.6 404.0 405.0 Products revenue 1,284.4 1,426.2 945.0 1,509.4 1,240.7 Total services revenue 379.8 368.7 370.6 428.3 314.3 Oth
Slide 21: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 1,166.4 990.8 952.4 1,418.0 1,080.9 Software revenue 385.6 802.1 241.4 521.2 523.9 Products revenue 1,551.9 1,792.9 1,193.9 1,939.2 1,604.9 Total services revenue 458.9 464.7 465.8 551.2 406
Slide 22: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) SEK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 1,518.7 1,619.5 1,610.4 2,057.9 1,836.3 Software revenue 819.8 1,375.1 493.2 1,193.6 1,028.8 Products revenue 2,338.4 2,994.6 2,103.6 3,251.5 2,865.1 Total services revenue 507.8 536.5 465.2
Slide 23: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 1,435.3 1,565.8 1,574.6 2,012.9 1,774.4 Software revenue 774.8 1,324.2 491.3 1,167.2 994.1 Products revenue 2,210.1 2,889.9 2,065.9 3,180.1 2,768.5 Total services revenue 479.9 518.8 455.9 57
Slide 24: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) EUR in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 38.4 35.4 26.6 37.8 39.8 Software revenue 39.7 24.6 10.8 19.9 43.8 Products revenue 78.2 60.1 37.4 57.7 83.6 Total services revenue 6.5 7.1 6.9 7.4 7.2 Other income 0.0 0.0 0.0 0.0 0.0 Reven
Slide 25: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 345.3 332.7 249.9 361.9 383.4 Software revenue 356.8 233.9 103.2 193.2 421.6 Products revenue 702.1 566.5 353.1 555.1 805.0 Total services revenue 58.5 66.1 64.1 71.4 68.9 Other income 0.0 0
Slide 26: Income statement actual – Baltics (EUR million)
Income statement actual – Baltics (EUR million) EUR in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 12.8 14.1 14.6 29.4 16.6 Software revenue 1.9 4.0 2.3 6.2 1.9 Products revenue 14.7 18.1 16.9 35.5 18.5 Total services revenue 6.7 7.4 7.5 8.8 7.7 Other income 0.0 0.0 0.0 0.0 0.0 Revenue 21
Slide 27: Income statement actual – Baltics (NOK million)
Income statement actual – Baltics (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 115.0 131.8 136.6 277.8 159.8 Software revenue 17.5 37.1 21.8 58.3 18.6 Products revenue 132.4 168.9 158.4 336.2 178.4 Total services revenue 60.5 69.6 70.1 83.7 73.7 Other income 0.2 0.2 0.
Slide 28: Income statement actual – Shared services (NOK million)
Income statement actual – Shared services (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 971.1 1,035.9 1,161.9 1,349.0 1,165.7 Software revenue 1.2 1.9 2.9 2.4 0.7 Products revenue 972.4 1,037.8 1,164.7 1,351.5 1,166.3 Total services revenue 54.2 53.9 58.5 64.9 87.2 Othe
Slide 29: Income statement actual – AppXite (EUR million)
Income statement actual – AppXite (EUR million) EUR in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 0.0 0.0 0.0 0.0 0.0 Software revenue 0.0 0.0 0.0 0.0 0.0 Products revenue 0.0 0.0 0.0 0.0 0.0 Total services revenue 0.0 0.0 0.0 0.0 0.5 Other income 0.0 0.0 0.0 0.0 0.0 Revenue 0.0 0.0 0.0
Slide 30: Income statement actual – AppXite (NOK million)
Income statement actual – AppXite (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Hardware revenue 0.0 0.0 0.0 0.0 0.0 Software revenue 0.0 0.0 0.0 0.0 0.0 Products revenue 0.0 0.0 0.0 0.0 0.0 Total services revenue 0.0 0.0 0.0 0.0 4.7 Other income 0.0 0.0 0.0 0.0 0.0 Revenue 0.0 0.0 0.0
Slide 31: Specialists in IT infrastructure
AICR Specialists in IT infrastructure