Itera Asa · OSL:ITERA
Itera Asa — Q3 2013 Earnings Presentation
23 slides from Itera Asa's earnings presentation, Oct 29, 2013
Slide 1: Interim Report Third Quarter 2013
INTERIM REPORT THIRD QUARTER 2013 CEO ARNE MJØS CFO TORUNN HAVRE OSLO, 29 OCTOBER 2013
Slide 2: Highlights in the third quarter
Highlights in the third quarter Revenues • Revenue increased by 9 % NOK million – MNOK 102 • EBITDA – MNOK 9.7, 9.7 % margin • EBIT – MNOK 4.7, 4.6 % margin • Employees increased by 4 % – 453 employees, up by 18 in Q3 • Improving operational performance EBIT NOK million – Higher revenue visibility a
Slide 3: Financial Review
FINANCIAL REVIEW THIRD QUARTER 2013 29.10.2013 / 3
Slide 4: Key figures
Key figures 2013 2012 Change 2013 2012 Change 2012 Q3 Q3 YTD YTD FY Operating revenue MNOK 102.5 93.8 9% 340.1 325.0 5% 438.2 Gross profit MNOK 85.1 77.3 10 % 272.5 267.7 2% 358.0 EBITDA MNOK 10.0 2.2 354 % 30.7 19.1 61 % 25.9 EBITDA margin 9.7 % 2.3 % 9.0 % 5.9 % 5.9 % Operating profit (EBIT) MNOK
Slide 5: Quarterly development
Quarterly development Operating revenue Employees NOK million End of period EBITDA EBIT NOK million NOK million THIRD QUARTER 2013 29.10.2013 / 5
Slide 6: Rolling 12-month (RTM)
Rolling 12-month (RTM) Rolling 12-month (RTM) NOK million RTM revenues RTM EBIT THIRD QUARTER 2013 29.10.2013 / 6
Slide 7: Statement of income
Statement of income 2013 2012 Change 2013 2012 Change 2012 NOK Million Q3 Q3 % YTD YTD % FY Operating revenue 102.5 93.8 9% 340.1 325.0 5% 438.2 Cost of sales 17.3 16.4 6% 67.7 57.3 18 % 80.2 Personnel expenses 61.9 61.9 0% 204.6 210.4 -3 % 281.9 Depreciation 5.2 4.8 10 % 15.8 13.5 17 % 18.6 Other o
Slide 8: Statement of cash flow
Statement of cash flow 2013 2012 2013 2012 2012 NOK Million Q3 Q3 YTD YTD FY Cash flow from operations (EBITDA) 10.0 2.2 30.7 19.1 25.9 Change in balance sheet items -6.0 2.2 -8.8 -13.9 -3.4 Net cash flow from operating activities 4.0 4.4 21.9 5.2 22.5 Net cash flow from investment activities -1.2 -
Slide 9: Statement of financial position
Statement of financial position 2013 2012 Change 2012 NOK Million 30 Sep 30 Sep % 31 Dec Deferred tax assets 10 13 -25 % 13 Other intangible assets 17 22 -19 % 20 Fixed assets 27 26 3% 27 Total non-current assets 54 61 -11 % 60 Work in progress 13 3 380 % 6 Accounts receivable 66 68 -3 % 74 Other re
Slide 10: Business Review
BUSINESS REVIEW THIRD QUARTER 2013 29.10.2013 / 10
Slide 11: Market environment
Market environment Market drivers Social Media • Digitalization and innovation drives Enhancing customer, employees and supplier communication, collaborations and growth interactions • Global sourcing is commonplace delivered as a component of most Mobile service offerings Transacting and interactin
Slide 12: Itera is a company specializing in communication and technology
Itera is a company specializing in communication and technology. We combine our multidisciplinary strengths to gain deeper insight, explore new possibilities and create better solutions. THIRD QUARTER 2013 29.10.2013 / 12
Slide 13: Vision: Making a difference. Always
Vision: Making a difference. Always • A Nordic communication and technology company – Mixing business, communication and technology skills to create better solutions. • Leading customers in fast growing industries – Long term partnerships through Oslo strong customer intimacy West Stockholm • Full s
Slide 14: Service offerings and key focus areas
Service offerings and key focus areas THIRD QUARTER 2013 29.10.2013 / 14
Slide 15: Long term profitable growth: Key enablers
Long term profitable growth: Key enablers Communication Larger projects 50 %+ of staff AND and revenue nearshore Technology visibility Future 2013 THIRD QUARTER 2013 29.10.2013 / 15
Slide 16: Strong development of larger projects and larger revenue per customer
Strong development of larger projects and larger revenue per customer • Top 10 customers up by 48 % in Q3 MNOK • Top 30 customers up by 30 % in Q3 Future • Top 10 customers represent 43 % of total revenue in Q3, up from 32 % in Q3 2012 • Benefits: 2013 – Increasing revenue visibility – Improving ope
Slide 17: Increasing nearshore leverage
Increasing nearshore leverage • Nearshore ratio 29% in Q3, moving Nearshore ratio % nearshore of all staff fast towards target of 50+ % • Customers are buying nearshoring services at a higher growth rate than local services • Mixed teams are increasing our price flexibility in addition to unlimited
Slide 18: Ukraine is by far the most attractive nearshore destination
Ukraine is by far the most attractive nearshore destination for innovative solutions 1. Availability of high-skilled resources – Ukraine was the R&D region of the former Soviet Union – Itera: Sourcing for value, not for volume 2. Cultural and geographical • Ukraine’s ranking in Doing Business proxim
Slide 19: By 2015 social media and mobile solutions will influence consumers' spending
By 2015 social media and mobile solutions will influence at least 80 % of consumers’ spending • Increasingly personalized, real time relationships • More co-creation of products and services • Focus on customer data management and predictive analytics Mobility Cloud Big data Social media Internet of
Slide 20: 2013 is showing a radical shift in buying patterns
2013 is showing a radical shift in buying patterns of communcation and technology We’re on the brink of a new High demand is turning the digital paradigm communication part of Itera into high profit margins Some examples of deliveries: • A large service design project to • Design and implementation
Slide 21: Outlook
OUTLOOK THIRD QUARTER 2013 29.10.2013 / 21
Slide 22: Outlook
Outlook • Customer demand remains strong in all Nordic markets • Profitable growth and cash flow are key focus • Scaling up our nearshoring capability will continue to ensure future competitiveness • Larger projects and customers should gradually increase revenue visibility, efficiency and scalabili
Slide 23: Top shareholders
Top 20 shareholders THIRD QUARTER 2013 29.10.2013 / 23