Slide 1: Interim Report
INTERIM REPORT vz0z~
Slide 2: Q2 Report 2024 agenda
Q2 REPORT 2024 ITERA 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 2024
Q2 REPORT 2024 ITERA 1 Highlights Q2 2024
Slide 4: Q2 in brief
Q2 REPORT 2024 ITERA Q2 in brief Market Wins Award Order intake 0% The pace of spending is mixed, but the fundamental importance of digital technology has not. . A major win with an estimated value of 60 MNOK to build the digital core for a major Norwegian industry As one of ten companies worldwide,
Slide 5: Key figures
Q2 REPORT 2024 ITERA Key figures Q2 Q2 Q2 0% -4% 9.4% Organic revenue Growth in number of EBIT margin growth employees last 12 months
Slide 6: Business review
Q2 REPORT 2024 ITERA 2 Business review
Slide 7: We are specialists in sustainable digital transformation
Q2 REPORT 2024 ITERA We are specialists in sustainable digital transformation Nordic origin. Global reach The Nordics is often positioned as digital and sustainable front-runner that show the way globally. Reykjavik Bergen Oslo Stockholm We are growing together with international customers and partn
Slide 8: A complete provider of services for building the digital core
Q2 REPORT 2024 ITERA A complete provider of services for building the digital core We deliver projects throughout the entire life cycle of a product or service Digital strategy We help companies set direction and convert opportunities from new technology to business value. Project and product manage
Slide 9: Our steady growth organic model
Q2 REPORT 2024 ITERA Our steady growth organic model Packaged offerings and Speed, industrialized reusability and services subscription Customer-centric We have built a strong international ONE and selected Itera operating model and will see more of industries divergence in the linearity between hea
Slide 10: Digital and Business Transformation
Q2 REPORT 2024 ITERA Digital and Business Transformation Fusion Technology fully business Business value integrated Innovation Differentiator Product Streamlined cloud product development Legacy+ Platform Legacy IT stagnant, Operationalized On-Premise, scattered cloud cloud Business not in business
Slide 11: Digital Factory at Scale: Doing more with less
Q2 REPORT 2024 ITERA Digital Factory at Scale: Doing more with less Organizations with Developer Velocity in the top ENERGY BUSINESS & DIGITAL STRATEGY quartile achieve1: 4-5 55% DIGITAL PRODUCT 1 DIGITAL PRODUCT 2 ANALYTICS & DATAOPS WORKLOADS times faster higher INDUSTRY STANDARDS revenue growth A
Slide 12: Major win 60MNOK for building a new digital core
Q2 REPORT 2024 ITERA Major win 60MNOK for building a new digital core With our customers prioritizing short-term value, we are witnessing an improving sales pipeline of new opportunities. ▪ We were chosen to build the digital core of a major Norwegian industrial company with an estimated contract va
Slide 13: New agreement to enhance Apotek 1's cloud infrastructure
Q2 REPORT 2024 ITERA New agreement to enhance Apotek 1’s cloud infrastructure Apotek 1 has engaged Itera to enhance and maintain the robustness of its cloud solutions, a collaboration that stems from a thorough process in which Apotek 1 identified a partner willing to tailor their services to our sp
Slide 14: New win in the financial sector
Q2 REPORT 2024 ITERA New win in the financial sector During the quarter, Itera has been awarded a framework agreement with one of the largest banking alliances in Norway. ▪ The company operates as a cooperative organization, collectively owned by tenfold local savings banks, serving approximately 1.
Slide 15: Order intake
Q2 REPORT 2024 ITERA Order intake Order intake from selected new and existing customers. Book-to-bill ratio*) of 0.7 in Q2 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 16: Itera is awarded International Flagship Project Award
Q2 REPORT 2024 ITERA Itera is awarded «International Flagship Project Award» For successful and inspiring international business ventures which highlight how attractive Ukraine is for business and investment despite the ongoing Russian war of aggression being waged against it. FIRST DEPUTY PRIME MIN
Slide 17: International Flagship Project Award
Q2 REPORT 2024 ITERA International Flagship Project Award As one of ten companies globally, this recognition was achieved for our instrumental role in supporting Ukraine in critical areas. ▪ 10 temporary bridges in the early phase of the war CEO Arne Mjøs in panel debate with other awarded companies
Slide 18: Moelven enters Ukraine with Itera
Q2 REPORT 2024 ITERA Moelven enters Ukraine with Itera Moelven Byggmodul AS, a Scandinavian industrial group that produces building products and systems, and Itera are launching a groundbreaking initiative, "Housing for Ukraine". ▪ The project aims to improve the living conditions for Ukrainian citi
Slide 19: Customer mix
Q2 REPORT 2024 ITERA Customer mix Revenue customers split (in MNOK) Share existing customers High visibility 94.7% (92.6%) 82% (83%) of revenues in Q2 2024 Top 30 customers, share of revenue New customers High customer concentration signifies 11.9 (16.7) ▪ ▪ Strategic relationships Full range of ser
Slide 20: Skilled and innovative employees
Q2 REPORT 2024 ITERA Skilled and innovative Number of employees end of quarter by shore employees 713 employees at the end of the quarter Down by 28 last twelve months as part of the business optimization program. Nearshore ratio of 51% (53%) Our distributed delivery model of onshore and nearshore c
Slide 21: Financial review
Q2 REPORT 2024 ITERA 3 Financial review
Slide 22: Key financials
Q2 REPORT 2024 ITERA Key financials ▪ Flat organic revenue (0%) 2024 2023 Change 2024 2023 Change 2023 NOK Million 4-6 4-6 % 1-6 1-6 % FY ▪ Personnel expenses down in Operating revenue 224.1 225.2 0% 452.6 455.5 -1% 871.6 line with FTEs Gross profit 205.2 208.8 -2% 417.4 425.9 -2% 813.7 ▪ Opex decre
Slide 23: Business optimization program
Q2 REPORT 2024 ITERA Business optimization program Itera has implemented a business optimization program with the target of improving EBIT margin by 1.2-1.6 points ▪ Strict cost control has brought spending on other Operating Expenses (OPEX) down in the last two quarters ▪ In Q2 of 2024, year-over-y
Slide 24: Revenue and earnings development
Q2 REPORT 2024 ITERA Revenue and earnings development Strong revenue growth year over year with 2-year MNOK Margin CAGR of 15.0% and an average of 8.9% EBIT margin Opportunities for margin expansion ▪ Conversion of promising pipeline ▪ Normalization of utilization ▪ Increasing recurring revenue and
Slide 25: Statement of cash flow
Q2 REPORT 2024 ITERA Statement of cash flow 12 month rolling cash flow 2024 2023 2024 2023 2023 from operations (NOK Million) NOK Million 4-6 4-6 1-6 1-6 FY EBITDA 29.4 26.4 57.1 67.2 110.7 Change in balance sheet items (2.3) 6.3 (37.4) (26.8) (17.3) Net cash flow from operating activities 27.2 32.7
Slide 26: Dividend and own shares
Q2 REPORT 2024 ITERA Dividend and own shares ▪ An ordinary dividend of NOK 0.40 per share Allocations to shareholders for 2023 paid + authorization for supplementary dividend later ▪ Share price was NOK 11.55 at the end of June 2024, a change of -18% incl. dividends from NOK 15.00 at the end of June
Slide 27: Statement of financial position per June 2024
Q2 REPORT 2024 ITERA Statement of financial position per 30 June 2024 ▪ Cash and equity reduced following aggressive Assets Equity and Liabilities dividend payments last 12 months ▪ Equity ratio of 18% (23%), 23% (30%) excluding IFRS 16 Leasing Right-of-use assets ▪ Cash balance of MNOK 29 (MNOK 52)
Slide 28: Outlook
Q2 REPORT 2024 ITERA 4 Outlook
Slide 29: Outlook
Q2 REPORT 2024 ITERA Outlook Underlying strong Readiness to migrate Continued attention Connecting Ukraine Profitable growth demand for digital and operate larger to business and the Nordics to and cash flow are transformation with scale cloud optimization to enable the green key focus areas. the ma
Slide 30: Q&A
Q2 REPORT 2024 ITERA 5 Q&A
Slide 31: Top 20 shareholders
Q2 REPORT 2024 ITERA 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 5.01 NOR 4 120 000 5 BOINVESTERING AS 3.63 NOR 2 982 862 6 GAMST INVEST AS 3.21 NOR 2 635 462 7 JØSYR
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