Atea Asa · OSL:ATEA
Atea Asa — Q1 2020 Earnings Presentation
34 slides from Atea Asa's earnings presentation, Apr 22, 2020
Slide 1: Q1 2020 Presentation
Q1 2020 PRESENTATION April 22, 2020
Slide 2: Highlights - Q1 2020
Highlights - Q1 2020 Revenue in line with last year in a challenging business environment Revenue of NOK 9.0 billion (NOK 9.1 billion in Q1 2019) ‒ Higher sales of software (up +6.7%) and services (up +5.7%) Gross profit of NOK 2.0 billion (NOK 1.9 billion in Q1 2019) ‒ Gross margin improves from 21
Slide 3: Revenue breakdown: Q1 2020
Revenue breakdown: Q1 2020 Business trends • Slow start to quarter for product revenue, with sales accelerating from March – Low order backlog from public sector exiting Q4 2019 – COVID-19 pandemic drives high demand for remote workplace solutions from March • Sales mix continues to shift toward sof
Slide 4: Norway
Norway Strong EBIT growth driven by higher sales of services, while operating expenses remain flat from last year REVENUE EBIT -8.2% 17.1% 2 442 Product revenue -13.4% 45 2 242 38 Service revenue +11.6% NOK in million NOK in million Gross profit +1.5% Operating expenses +0.3% Q1 19 Q1 20 Q1 19 Q1 20
Slide 5: Sweden
Sweden EBIT falls due to lower product revenue REVENUE EBIT -5.8% -8.8% 3 825 Product revenue -7.5% 112 3 601 102 Service revenue +2.1% SEK in million SEK in million Gross profit -0.6% Operating expenses +0.8% Q1 19 Q1 20 Q1 19 Q1 20
Slide 6: Denmark
Denmark Cost efficiency program implemented to reduce operating costs Appointment of new managing director and severance of 67 employees REVENUE EBIT* -9.2% -19 MDKK 1 433 Product revenue -8.5% 1 302 Q1 19 Q1 20 Service revenue -11.3% DKK in million DKK in million -20 Gross profit -11.0% Operating e
Slide 7: Finland
Finland Rapid growth in revenue and EBIT driven by higher sales of both products and services REVENUE EBIT +12.5% +30.5% Product revenue +12.1% 113 1,6 101 1,2 Service revenue +17.9% EUR in million EUR in million Gross profit +11.9% Operating expenses +9.8% Q1 19 Q1 20 Q1 19 Q1 20
Slide 8: Baltics
Baltics EBIT falls due to higher personnel costs in the Baltic region REVENUE EBIT +2.2% -16.9% Product revenue +5.0% 31 32 0,9 0,7 Service revenue -5.0% EUR in million EUR in million Gross profit +8.4% Operating expenses +11.9% Q1 19 Q1 20 Q1 19 Q1 20
Slide 9: Cash flow from operations
Cash flow from operations CURRENCY: MNOK Q1 2020 Q1 2019 Cash flow from operations impacted by: Operating Cash flow, before change in working capital 54 144 • Seasonal fluctuations in working capital Changes in working capital -834 -1,130 – Working capital balance is (excluding sale of receivables)
Slide 10: Net debt
Net debt Net debt / EBITDA ratio* of 0.4 is NOK 2.6 billion below loan covenants CURRENCY: MNOK Q1 2020 Q1 2019 Net debt* -519 -620 EBITDA - rolling 4 Q* 1,265 1,113 Net debt / EBITDA, end of quarter (ratio) 0.4 0.6 Loan covenant: -- Maximum Net Debt / EBITDA (ratio) 2.5 2.5 -- Maximum Net Debt bala
Slide 11: COVID-19 action plan
COVID-19 action plan • Large organizations require IT investments / support as their workforce adapts to remote operations Sales opportunity • Sales (order inflow) in Q1 was up 10% from last year as order backlog increased in digital workplace • Supply chain disruptions have not been a significant i
Slide 12: Survey: Employee satisfaction with home office
Survey: Employee satisfaction with home office A large majority is comfortable with the new work situation 80% Key findings of survey 70% • Home office is a new working condition for half 60% of the population • The majority is comfortable working from home 50% • In order to prevent queues and conge
Slide 13: Survey: Need for IT investment and support
Survey: Need for IT investment and support Additional support is required to ensure productivity and IT security 90% Key findings of survey 80% • The level of trust is high – that can make us 70% vulnerable 60% • A large majority does not worry about privacy or IT- 50% security issues 40% • Employer
Slide 14: Atea is well-positioned for the market environment
Atea is well-positioned for the market environment Large organizations are increasingly dependent on IT solutions for their operations ‒ Urgent requirement to invest in remote workplace solutions COVID-19 pandemic forces large organization to rethink their IT infrastructure ‒ Will drive further larg
Slide 15: AICR
AICR Specialists in IT infrastructure
Slide 16: Q1 2020 Fact Pack
Q1 2020 FACT PACK
Slide 17: Highlights – Group
Highlights – Group Q1 Q1 Full year NOK in million 2020 2019 2019 Group revenue 9,043 9,138 36,655 Group margin 1,997 1,938 7,758 Gross margin (%) 22.1% 21.2% 21.2% EBIT before reorganization costs 103 116 747 Reorganization costs 71 0 0 Net profit 6 79 530 Earnings per share (NOK) 0.05 0.73 4.84 Dil
Slide 18: Consolidated statement of financial position – Group
Consolidated statement of financial position – Group NOK in million 31 Mar 2020 31 Mar 2019 31 Dec 2019 ASSETS Property, plant and equipment 558 530 498 Right-of-use assets 1,262 692 996 Deferred tax assets 383 407 354 Goodwill 4,289 3,811 3,881 Other intangible assets 310 230 237 Investment in asso
Slide 19: Full-time employees - Group
Full-time employees - Group FTEs, end of period 31 Mar 2020 31 Mar 2019 31 Dec 2019 Norway 1,706 1,702 1,687 Sweden 2,595 2,495 2,620 Denmark 1,391 1,463 1,461 Finland 424 369 431 Baltics 651 656 664 Logistics 250 235 257 Atea Global Services 441 391 418 Atea ASA 11 12 12 AppXite 36 39 35 Atea Group
Slide 20: Financial performance actual – Segment
Financial performance actual – Segment
Slide 21: Financial performance pro forma – Segment
Financial performance pro forma – Segment
Slide 22: Income statement actual - Group (NOK million)
Income statement actual - Group (NOK million)
Slide 23: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Hardware revenue 1,315.6 1,172.0 1,247.5 1,489.1 1,154.7 Software revenue 613.7 452.2 435.2 577.4 515.4 Products revenue 1,929.3 1,624.2 1,682.8 2,066.4 1,670.1 Total services revenue 512.3 553.2 511.5 546.9
Slide 24: Income statement pro forma – Norway (NOK million)
Income statement pro forma – Norway (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Hardware revenue 1,315.6 1,172.0 1,247.5 1,489.1 1,154.7 Software revenue 613.7 452.2 435.2 577.4 515.4 Products revenue 1,929.3 1,624.2 1,682.8 2,066.4 1,670.1 Total services revenue 516.5 556.2 516.0 546
Slide 25: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million)
Slide 26: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million)
Slide 27: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) SEK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Hardware revenue 2,014.3 1,866.1 1,967.4 2,224.8 1,813.1 Software revenue 1,156.0 1,823.7 713.4 1,498.0 1,119.9 Products revenue 3,170.3 3,689.8 2,680.8 3,722.8 2,932.9 Total services revenue 654.4 657.1 581.
Slide 28: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Hardware revenue 1,883.0 1,706.8 1,817.1 2,104.6 1,775.7 Software revenue 1,080.6 1,675.9 658.1 1,415.7 1,096.8 Products revenue 2,963.6 3,382.6 2,475.2 3,520.4 2,872.5 Total services revenue 611.7 601.5 536.
Slide 29: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) EUR in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Hardware revenue 43.5 44.5 38.1 48.4 45.3 Software revenue 50.6 25.6 26.5 24.7 60.2 Products revenue 94.1 70.2 64.6 73.0 105.5 Total services revenue 6.5 7.0 7.5 9.0 7.7 Revenue 100.7 77.2 72.1 82.0 113.2 Ma
Slide 30: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Hardware revenue 423.8 432.8 375.8 486.5 473.5 Software revenue 493.2 248.8 262.0 251.2 629.9 Products revenue 916.9 681.6 637.8 737.7 1,103.4 Total services revenue 63.6 67.9 74.0 90.2 80.5 Revenue 980.5 74
Slide 31: Income statement actual – Baltics (EUR million)
Income statement actual – Baltics (EUR million) EUR in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Hardware revenue 19.4 17.7 15.1 20.1 16.5 Software revenue 3.1 3.0 3.7 8.5 7.2 Products revenue 22.6 20.8 18.8 28.7 23.7 Total services revenue 8.7 9.0 8.4 10.9 8.3 Revenue 31.3 29.7 27.2 39.6 32.0 Margin 7.
Slide 32: Income statement actual – Baltics (NOK million)
Income statement actual – Baltics (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Hardware revenue 189.2 172.3 148.9 202.4 172.5 Software revenue 30.6 29.4 36.1 85.0 75.2 Products revenue 219.8 201.7 185.0 287.4 247.7 Total services revenue 85.0 87.2 83.0 109.6 86.6 Revenue 304.8 288.9 26
Slide 33: Income statement actual – Group Shared Services (NOK million)
Income statement actual – Group Shared Services (NOK million) * Atea Logistics, Atea Global Services, Atea Group Functions, AppXite and Securitization SPV
Slide 34: AICR
AICR Specialists in IT infrastructure