Slide 1: Q2 Interim Report 2020
Q2 INTERIM REPORT 2020 1 Itera | Q2 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 | Q2 2020
Slide 3: Highlights of the Second Quarter
HIGHLIGHTS OF THE SECOND QUARTER High growth and Total business COVID-19 Grow people Dividend profitability in Revenue NOK Moderate High productivity Ordinary core digital 150.8 (143.3) impact from maintained with dividend for business (81% million, up by COVID-19 remote work 2019 of NOK of total) 5
Slide 4: Highlights of the Second Quarter
HIGHLIGHTS OF THE SECOND QUARTER Core digital business: Total business: • Gross profit growth of 8.3% (12.6% in H1) • Gross profit growth of 7.8% (11.5% in H1) • EBIT margin of 12.7% (13.5% in H1) • EBIT margin of 10.5% (11.2% in H1) Revenues EBIT NOK million NOK million 162 143 151 146 143 19.2 128
Slide 5: Business review
Business review 5 Itera | Q2 2020
Slide 6: 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 6 Itera | Q2 2020
Slide 7: Make a Difference: How?
WHY WE ARE HERE MAKE A DIFFERENCE FOR OUR EMPLOYEES, OUR CUSTOMERS, THEIR CUSTOMERS AND SOCIETY AS A WHOLE Skilled people and multidisciplinary teams Platform first HOW? ONE Itera across borders Entrepreneurship and local ownership Sustainability focus
Slide 8: Evolving Our Sustainable Business
EVOLVING OUR SUSTAINABLE BUSINESS 2019: The ambitions 2020: The platforms 2021->: Full realization • Developed sustainability • Make creating sustainable • New concepts and tools strategy digital business as our core combining sustainability and position digitalization • Prioritized United Nations (
Slide 9: Sustainable Engagements
SUSTAINABLE ENGAGEMENTS Reducing cement’s carbon footprint by The green transformation of oil & gas and extending service life time its supply industry • Today, the production of concrete accounts for 8 • Oil & gas and its supply industry are committed per cent of the global CO2 emissions. to reduce
Slide 10: Summer Internships as Planned
SUMMER INTERNSHIPS AS PLANNED • Itera did not reduce the intake of summer students despite Covid-19 challenges • 31 students were engaged in five real customer projects • New technology was utilized for a wide range of solutions and services • Sustainable gains were realised through energy optimisat
Slide 11: Visual Asset Tracking at Kvaerner
VISUAL ASSET TRACKING AT KVAERNER At Kvaerner’s production yards, thousands of assets such as wagons, production equipment and trucks are in continuous motion. This makes it challenging to have an overview of where the different assets are located at any time. Some of Itera’s summer interns particip
Slide 12: Best in Europe, Global Finalist
BEST IN EUROPE, GLOBAL FINALIST • Itera awarded the best project management office (PMO) in Europe by a jury of 420 judges from 110 countries. • The award was based on a thorough evaluation of our delivery framework, methodology, routines and practices related to project management. • As the winner
Slide 13: Technologies Demystified
“TECHNOLOGIES DEMYSTIFIED” • Webinar in June based on the experience with kompensasjonsordningen.no with 100+ participants • Very strong line-up, with DNB, BITS, Microsoft and The Norwegian Tax Administration • 8 more webinars are planned in 2H 13 Itera | Q2 2020
Slide 14: Order Intake from New and Existing Customers
ORDER Order INTAKE intake FROM from selected NEW new AND and existing EXISTING CUSTOMERS customers ORDER INTAKE Book-to-bill ratio*) of 0.8 in Q2 and 1.1 in H1 for core digital business 14 Itera | Q2 2020 *) The book-to-bill ratio is the ratio of orders received to the amount of revenue for a specif
Slide 15: Strategic Partner for Gjensidige
• During the second quarter, Itera was chosen as one of Gjensidige's strategic partners in digitalisation. • Among the criteria for Gjensidige's choice of partner were competence, delivery model, flexibility, professionalism and the ability to reduce risk. • The agreement has a duration of up to 5 y
Slide 16: Customer Development
CUSTOMER DEVELOPMENT Revenue customers split (in MNOK) • New business 100% 6 7 6 7 14 18 17 20 20 16 90% 80% • Existing customers accounted for 89.1% 70% 60% (87.7%) of revenues in Q2 2020 50% 125 131 116 134 129 134 40% 126 111 126 142 • New customers won over the past year 30% 20% generated revenu
Slide 17: Skilled and Innovative Employees
SKILLED AND INNOVATIVE EMPLOYEES Number of employees end of quarter by shore • 530 employees at the end of the quarter • Up 3 from last quarter and 31 from same period last year • 6 quarters of sequential growth • Nearshore ratio of 48% (48%) • Our hybrid delivery model of onshore and nearshore cons
Slide 18: Financial review
Financial review 18 Itera | Q2 2020
Slide 19: Key Figures
2020 2019 Change 2020 2019 Change 2019 NOK Million 4-6 4-6 % 1-6 1-6 % FY Sales revenue 150.8 143.3 5% 312.7 286.1 9% 560.3 Gross profit 131.6 122.1 8% 272.8 244.7 11 % 483.0 Personnel expenses 96.2 87.9 9% 195.6 178.2 10 % 348.3 Other opex 9.6 11.6 (18 %) 22.0 21.7 2% 42.7 EBITDA 25.8 22.6 14 % 55.
Slide 20: Business Segments
Revenue growth Q2 H1 Core digital business 5.2 % 10.0 % Data centre transformation 5.5 % 6.3 % Share of revenue Total 5.2 % 9.3 % 19 % Gross profit growth Q2 H1 Core digital business 8.3 % 12.6 % Data centre transformation Data centre transformation 4.5 % 4.2 % Core digital business Total 7.8 % 11.5
Slide 21: Revenue and Earnings Development
REVENUE AND EARNINGS DEVELOPMENT Quarterly Revenue and EBIT margin • Revenue increased by 5% to 151 200 14% MNOK 12% 150 MNOK and EBIT margin by 0.8 pts to 10% 8% 100 10.5% 6% 4% 50 • Last 12 months rolling revenue 0 2% 0% increased by 7% to 587 MNOK and Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-
Slide 22: Revenue Split
Revenue split (quarterly figures) REVENUE SPLIT NOK Million Services Subscriptions 3rd party services Other 38 37 38 35 35 33 Revenue increased by 5% y-o-y 32 33 33 33 34 35 36 • Service revenues from own consultants 72 67 90 86 87 75 88 95 96 83 99 112 104 increased by 8% to NOK 104 million • Subsc
Slide 23: Statement of Cash Flow
STATEMENT OF CASH FLOW 12 month rolling cash flow from operations (NOK Million) • Cash flow from operations NOK 40.2 (26.9) million in Q2 • 12 month rolling cash flow from operations was NOK 106 million 23 Itera | Q2 2020
Slide 24: Dividend and Own Shares
• An ordinary dividend of NOK 0.20 per share was paid on 4 June 2020 • Share price was NOK 11.55 at the end of Q2 2020, an increase of 48% (52% incl. dividends) from NOK 7.80 at the end of Q2 2019. • Current holding of own shares is 1,691,594 shares, a net increase of 856,537 in the quarter • Consis
Slide 25: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION • Equity ratio of 19% (20%) per 30 June (23% excl. IFRS 16 Leasing) • Cash balance of MNOK 48 (MNOK 44) Assets Equity and Liabilities Right –of- use assets Non-current Current assets liabilities Receivables and WIP Non-current liabilities Cash Equity 25 Itera | Q2 202
Slide 26: Outlook
Outlook 26 Itera | Q2 2020
Slide 27: Outlook
• Recovery in many sectors with the re-openings in the Nordics, but still high global uncertainty due to Covid-19. • Underlying attractive market with high demand for digitalisation in all Nordic markets. • Itera well positioned to gain market shares through attractive hybrid delivery model • Accele
Slide 28: Q&A session
Q&A session 28 Itera | Q2 2020
Slide 29: Top 20 Shareholders
No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS* 28.35 NOR 23 297 854 2 OP CAPITAL AS 5.41 NOR 4 443 357 3 GIP AS 4.62 NOR 3 800 000 4 DnB NOR Bank ASA 4.08 NOR 3 350 000 5 EIKESTAD AS 4.03 NOR 3 310 000 6 SEPTIM CONSULTING AS 3.52 NOR 2 890 000 7 BOINVESTERING AS 3.21 NOR 2 640 000 8 GAMST INVES
Slide 30: 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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