Slide 1: Q1 Interim Report 2020
Q1 INTERIM REPORT 2020 1 Itera | Q1 2020
Slide 2: Presenters and Agenda
PRESENTERS AND AGENDA Arne Mjøs Highlights of the quarter Chief Executive Officer Business review Bent Hammer Financial review Chief Financial Officer Outlook 2 Itera | Q1 2020
Slide 3: Highlights of the First Quarter
HIGHLIGHTS OF THE FIRST QUARTER High growth and Total business COVID-19 Grow people Dividend profitability in Revenue NOK Only minor Several key Proposed core digital 161.9 (142.8) setback from new positions ordinary business million, up by industries most for further dividend for 13% y-o-y impacted
Slide 4: Highlights of the First Quarter
HIGHLIGHTS OF THE FIRST QUARTER Revenues EBIT NOK million NOK million 162 143 143 146 19.2 18.6 128 13.8 13.9 9.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2019 2020 4 Itera | Q1 2020
Slide 5: Business review
Business review 5 Itera | Q1 2020
Slide 6: Itera | Q1 2020
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Slide 7: The Specialist in Creating Sustainable Digital Business
THE SPECIALIST IN CREATING WE UNDERSTAND THE USER SUSTAINABLE New use cases DIGITAL BUSINESS WE UNDERSTAND THE WE UNDERSTAND THE BUSINESS TECHNOLOGY Data centric Artificial intelligence 7 Itera | Q1 2020
Slide 8: Platform First
COVID-19 speeds up digital change Cloud + IoT + Data + AI PLATFORM FIRST 8 Itera | Q1 2020
Slide 9: The Shift Is Spot On Our Strategy
THE SHIFT IS SPOT ON OUR STRATEGY Digital change speeds up A window of opportunity for Itera • The value of digital channels, products • Proactively work with existing and new and operations is immediately obvious to customers to enable their digital change companies everywhere now • Drive ONE Itera
Slide 10: Focus Areas 2020
FOCUS AREAS 2020 Grow people Grow customers A winning team Sustainability WHY WHY WHY WHY Our employees are our Growth creates exciting We have what it takes to We want to create most valuable asset opportunities for be among the best the society of tomorrow employees and customers HOW HOW HOW HOW C
Slide 11: Anine Ragnif, André Nymoen, Mette Mowinckel
Anine Ragnif André Nymoen Mette Mowinckel Chief Delivery & Performance Chief Experience Officer HR Director Officer 25 years experience in digital 20+ years experience from 25 years experience from the media in Norway and UK HR positions in the IT industry IT industry 11 Itera | Q1 2020
Slide 12: Selected projects
Selected projects 12 Itera | Q1 2020
Slide 13: Kompensasjonsordningen.no
KOMPENSASJONSORDNINGEN.NO Bits engaged Itera to create and operate 24x7 management solutions for the COVID-19 Norwegian Government payout solution to enterprises with a significant drop in revenue • COVID-19 First Responder status in Azure • Advisory services in architecture and use of services and
Slide 14: Smart Use of Data for Sustainability
SMART USE OF DATA FOR SUSTAINABILITY Today, the production of concrete accounts for 8 per cent of the global CO2 emissions. The Norwegian company Elop has developed a technology that makes it possible to "read" the state of concrete using an ultrasonic scanner, called COBRI. Data driven solutions •
Slide 15: Teams in 24 Hours
TEAMS IN 24 HOURS • Most organisations have experienced the importance of well-functioning digital interaction tools when physical presence is not desirable or practically feasible. • During the first quarter, Itera implemented Microsoft Teams for a large Danish recruitment company with 800 employee
Slide 16: Order Intake from New and Existing Customers
ORDER Order INTAKE intake from newFROM NEWcustomers and existing AND EXISTING CUSTOMERS ORDER INTAKE Book-to-bill ratio*) of 1.1 in Q1 16 Itera | Q1 2020 *) The book-to-bill ratio is the ratio of orders received to the amount of revenue for a specific period for Itera units
Slide 17: Customer Development
CUSTOMER DEVELOPMENT • New business Revenue customers split • Existing customers accounted for 87.7% MNOK (90.4%) of revenues in Q1 2020 180 160 • New customers won over the past year 20 140 generated revenues of NOK 19.9 (13.7) 14 120 million in Q1 2020 100 80 142 • Good visibility 60 129 • Share o
Slide 18: Nearshore Ratio
NEARSHORE RATIO % of all staff located nearshore 60 % 50 % 40 % 30 % 49 % 44 % 46 % 20 % 38 % 36 % 10 % 0% Q1 16 Q1 17 Q1 18 Q1 19 Q1 20 • Nearshore ratio of 49% in Q1 2020 • Our hybrid delivery model of onshore and nearshore consultants are increasing our price competitiveness as well as providing
Slide 19: Financial review
Financial review 19 Itera | Q1 2020
Slide 20: Key Figures
2020 2019 Change 2019 NOK Million 1-3 1-3 % FY Sales revenue 161.9 142.8 13 % 560.3 Gross profit 141.1 122.6 15 % 483.0 Personnel expenses 99.4 90.3 10 % 348.3 Other opex 12.4 10.0 24 % 42.7 EBITDA 29.3 22.3 31 % 92.0 EBITDA margin 18.1 % 15.6 % 2.5 pts 16.4 % Depreciation 10.1 8.5 19 % 35.8 EBIT 19
Slide 21: Business Segments
Growth and profitability Share of revenue 16 % 14.2 % 16 % 14 % 14 % 11.9 % 12 % 12 % 19 % 10 % 10 % 8% 8% 6% 6% 4% 4% 1.7 % 81 % 2% 2% 7.0 % 14.9 % 13.4 % 0% 0% DCO transformation Core Digital Business Total Growth EBIT margin DCO transformation Core Digital Business BUSINESS • Core digital busines
Slide 22: Quarterly Development
Operating revenue Employees NOK million End of period 162 527 505 512 499 146 488 143 143 128 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 EBITDA EBIT Margin QUARTERLY NOK million NOK million DEVELOPMENT 22.3 28.0 29.3 20% 15% 13.8 13.9 18.6 19.2 20% 22.6 15% 19.1 9.9 10% 10% 5% 5% 0%
Slide 23: Revenue Split
Revenue split (quarterly figures) REVENUE SPLIT NOK Million Services Subscriptions 3rd party services Other 38 Revenue increased by 13% y-o-y 32 32 33 33 33 34 35 35 35 36 37 33 • Service revenues from own consultants 99 112 90 86 87 88 95 96 83 increased by 18% to NOK 112 million 74 72 67 75 • Subs
Slide 24: Statement of Cash Flow
STATEMENT OF CASH FLOW 2020 2019 2019 NOK Million 1-3 1-3 FY 12 month rolling cash flow from operations Cash flow from operations (EBITDA) 29.3 22.3 92.0 (NOK Million) Change in balance sheet items (21.8) (27.3) (12.0) Net cash flow from operating activities 7.5 (5.0) 80.0 93 Net cash flow from inve
Slide 25: Dividend and Own Shares
• The Board will propose an ordinary dividend of NOK 0.20 per share to be paid on 4 June 2020 • Share price was NOK 8.48 at the end of Q1 2020, an increase of 2.9% from NOK 8.24 at the end of Q1 2019. • Current holding of own shares is 835,057 shares, increased by 65,166 in the quarter • Consistent
Slide 26: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION • Equity ratio of 26% (22%) per 31 March • Cash balance of MNOK 51 (MNOK 43) Assets Equity and Liabilities 300 250 Right –of- 41 50 use assets 200 Non-current 59 158 51 Current 154 assets MNOK liabilities 150 Receivables and 108 100 112 WIP 34 Non-current 45 liabiliti
Slide 27: Outlook
Outlook 27 Itera | Q1 2020
Slide 28: Outlook
• Underlying attractive market with high demand for digitalisation in all Nordic markets, but COVID-19 now strongly impacting economy and softening demand • Itera well positioned to gain market shares through attractive hybrid delivery model • Profitable growth and cash flow are key focus areas • La
Slide 29: Q&A session
Q&A session 29 Itera | Q1 2020
Slide 30: Top 20 Shareholders
No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS* 27.96 NOR 22 975 545 2 OP CAPITAL AS 5.41 NOR 4 443 357 3 GIP AS 4.60 NOR 3 779 054 4 EIKESTAD AS 4.38 NOR 3 602 500 5 DnB NOR Bank ASA 4.08 NOR 3 350 000 6 SEPTIM CONSULTING AS 3.52 NOR 2 890 000 7 BOINVESTERING AS 3.21 NOR 2 640 000 8 GAMST INVES
Slide 31: Copyright and Disclaimer
COPYRIGHT AND DISCLAIMER Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Itera and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor use
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