Slide 1: Wake a difference
2023 Wake a difference
Slide 2: Q2 report 2023 agenda
Q2 REPORT 2023 ITERA | 02 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 2023
Q2 REPORT 2023 ITERA | 03 01 Highlights Q2 2023
Slide 4: Q2 in brief
Q2 REPORT 2023 ITERA | 04 Q2 in brief 23% Attractive market for digital transformation, driven by the green Macro environment continues to be uncertain with various Profitability impacted by lower utilization, higher PEX and OPEX, Our operation in Ukraine is running as normal, with increasing energy
Slide 5: Key figures
Q2 REPORT 2023 ITERA | 05 Key figures Q2 YTD Q2 YTD Q2 YTD 23% 27% 12% 12% 8.2% 11.3% Organic revenue Growth in number Operating margin growth of employees Revenues Employees EBIT margin NOK million 2021 2022 2023 End of period 2021 2022 2023 % 2021 2022 2023 250 230 225 800 731 741 18% 700 16% 14.4
Slide 6: Business review
Q2 REPORT 2023 ITERA | 06 02 Business review
Slide 7: We are specialists in sustainable digital transformation
Q2 REPORT 2023 ITERA | 07 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. We are growing together with international customers and partners based on our ONE Itera
Slide 8: Our steady growth organic model
Q2 REPORT 2023 ITERA | 08 Our steady growth organic model We have built a strong international ONE Packaged offerings and Speed, reusability industrialised services and subscription Itera operating model and will see more Customer-centric of divergence in the linearity between and selected headcount
Slide 9: AI: The next platform shift
Q2 REPORT 2023 ITERA | 09 AI: The next platform shift Two new dimensions Natural language Using natural language in the same way that you would ask a question/statement Reasoning engine Superpower engine that works on top of all data and uses knowledge graphs to draw conclusions, make decisions, sum
Slide 10: Towards AI transformation
Q2 REPORT 2023 ITERA | 10 Towards AI transformation Cloud Digital AI Transformation Transformation Transformation Using cloud computing Using algorithms and Reimagining the business machine learning to increase as default option for through digitalization automation and value new IT capabilities and
Slide 11: Characteristics of companies that win in the area of AI
Q2 REPORT 2023 ITERA | 11 Characteristics of companies that win in the area of AI Leader-led Maximized Willingness transformation use of data to change Our opportunity Digital technology drives market cap beyond people and machines Most companies ~80% don’t have the data to use the generative AI eff
Slide 12: Digital Factory at Scale: Doing more with less
Q2 REPORT 2023 ITERA | 12 Digital Factory at Scale: Doing more with less 20-30% Typically, the speed and throughput are increased by CUSTOMER BUSINESS & DIGITAL STRATEGY 20-30% or more compared to staff augmentation ANALYTICS & DIGITAL DIGITAL Innovation Faster business innovation PRODUCT 1 PRODUCT
Slide 13: Global Center of competence
Q2 REPORT 2023 ITERA | 13 Global Center of competence Our global capabilities in Data, AI & Analytics brings together our expertise and cutting- edge technologies to help our customers unleash the power of data and AI at scale. Machine Data Literacy, Data Data Data Learning Generative culture and Vi
Slide 14: AI exploration for NHO
Q2 REPORT 2023 ITERA | 14 AI exploration for NHO Itera has done an exploratory project for NHO (The Confederation of Norwegian Enterprise), investigating how they can use AI to streamline their work and help their members faster. Through the project, we identified several relevant applications and d
Slide 15: Projects at IMDi – powered by Digital Factory at Scale
Q2 REPORT 2023 ITERA | 15 Projects at IMDi – powered by Digital Factory at Scale In the past year, Itera has had a central role at IMDi, and solved several projects for them - using the Digital Factory at Scale. ▪ In Q2, designers from Itera, among others, have had a central role in the "Bedre Boset
Slide 16: Private sector led recovery of Ukraine
Q2 REPORT 2023 ITERA | 16 Private sector led recovery of Ukraine The rebuilding of Ukraine is a collective effort that will only succeed if public and private actors work together. It is time for the Nordic region’s energy sector, supplier industry and technology industry to step in and see how we c
Slide 17: Ukraine towards the green energy and digital hub for Europe
Q2 REPORT 2023 ITERA | 17 Ukraine towards the green energy and digital hub for Europe European FLAGSHIP 360 GW 90% Supply chain 310 000 IT talents in the green energy and the global most digital society industrial transition, including renewables in 2050, mostly mostly local energy equipment in 2025
Slide 18: Arendalsuka 2023
Q2 REPORT 2023 ITERA | 18 Arendalsuka 2023 Digital transformation, the green shift, the war in Ukraine and artificial intelligence were all topics for our events at Arendalsuka. The symbiosis between business and politics has rarely had more significance than now, which is why we arranged two events
Slide 19: Welcome to our new headquarters
Q2 REPORT 2023 ITERA | 19 Welcome to our new headquarters Itera moved its headquarters to Stortingsgata 6 in central Oslo. ▪ Hybrid workplace ▪ Attractive to top talents ▪ Availability to our customers ▪ Sustainable We look forward to opening the doors to customers, partners, investors, and anyone w
Slide 20: Board of directors
Q2 REPORT 2023 ITERA | 20 Board of directors Two new board members (from May 2023) Morten Thorkildsen Gyrid Skalleberg Ingerø Helge Leiro Baastad Åshild Hanne Larsen Jan Erik Carlson Chairperson of the board Member of the board Member of the board Member of the board Member of the board NEW NEW Sire
Slide 21: Order intake
Q2 REPORT 2023 ITERA | 21 Order intake Order intake from selected new and existing customers. Book-to-bill ratio*) of 0.6 in Q2 and 1.1 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 22: Customer development
Q2 REPORT 2023 ITERA | 22 Customer development Revenue customers split (in MNOK) New business 100% 16 19 15 24 30 17 ▪ Existing customers accounted for 92.6% (89.5%) 90% 23 21 22 80% of revenues in Q2 2023 70% 60% ▪ New customers won over the past year generated 50% 40% 127 118 136 160 164 156 181 2
Slide 23: Skilled and innovative employees
Q2 REPORT 2023 ITERA | 23 Skilled and innovative employees 741 employees at the end of the quarter Number of employees end of quarter by shore 800 55% ▪ Up by 80 (82) last twelve months, 700 53% 600 temporarily impacted by the invasion 500 51% 400 49% in Ukraine 300 47% 200 ▪ More than 60% of the FT
Slide 24: Financial review
Q2 REPORT 2023 ITERA | 24 03 Financial review
Slide 25: Key financials
Q2 REPORT 2023 ITERA | 25 Key financials 2023 2022 Change 2023 2022 Change 2022 ▪ Organic revenue growth of 23% NOK Million 4-6 4-6 % 1-6 1-6 % FY ▪ Personnel expenses driven by FTE Operating revenue 225.2 183.5 23% 455.5 359.5 27% 735.8 growth, NOK depreciation and Gross profit 208.8 169.6 23% 425.
Slide 26: Revenue and earnings development
Q2 REPORT 2023 ITERA | 26 Revenue and earnings development EBIT MNOK margin 250 20% ▪ Strong sales growth year over year with 2-year CAGR of 24.0% and an 200 average of 10.8% EBIT margin 15% ▪ Quarterly figures are impacted by number of working days net of 150 vacations. Q2 2023 had a weighted 10% a
Slide 27: EBIT margin development
Q2 REPORT 2023 ITERA | 27 EBIT margin development EBIT margin development: ▪ Margin decrease regular business: -3.1% ▪ Lower utilization, salary costs, one-off opex ▪ Support to Ukraine: -0.4% ▪ Investment in Sweden: -0.4% ▪ Investment in capacity readiness for cloud expansion: +0.3% vs LY but signi
Slide 28: Statement of cash flow
Q2 REPORT 2023 ITERA | 28 Statement of cash flow 2023 2022 2023 2022 2022 12 month rolling cash flow from operations (NOK Million) NOK Million 4-6 4-6 1-6 1-6 FY 104 EBITDA 26.4 28.8 67.2 62.1 109.0 Change in balance sheet items 6.6 (15.8) (26.3) (49.5) (32.9) Net cash flow from operating activities
Slide 29: Dividend and own shares
Q2 REPORT 2023 ITERA | 29 Dividend and own shares ▪ An ordinary dividend of NOK 0.30 per share for 2022 paid + 1.20 authorization for potential 1.00 supplementary dividend 0.80 NOK per share 0.60 ▪ Share price was NOK 15.00 at the 0.40 end of June 2023, a change of +22% 0.20 incl. dividends from NOK
Slide 30: Statement of financial position
Q2 REPORT 2023 ITERA | 30 Statement of financial position ▪ Equity ratio of 24% (25%) Assets Equity and Liabilities per 30 June 2023 350 ▪ 30% (28%) excl. IFRS 16 Leasing 300 Right-of-use assets 69 ▪ Right-of-use assets up 250 Non-current MNOK 42 from new facility 27 assets 50 184 Current agreement
Slide 31: Outlook
Q2 report 2023 ITERA | 31 04 Outlook
Slide 32: Outlook
Q2 REPORT 2023 ITERA | 32 Outlook Regional expansion Continued high Readiness to migrate Connecting Ukraine Profitable growth continues in the growth for digital and operate larger and the Nordics to and cash flow are Nordics and Central transformation scale cloud enable the green key focus areas. E
Slide 33: Q&A
Q2 report 2023 ITERA | 33 05 Q&A
Slide 34: We stand with Ukraine
Slide 35: Top 20 shareholders
Q2 REPORT 2023 ITERA | 35 Top 20 shareholders No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS 32.08 NOR 26,363,031 2 OP CAPITAL AS 5.60 NOR 4,605,242 3 GIP AS 5.19 NOR 4,262,000 4 SEPTIM CONSULTING AS 3.93 NOR 3,226,876 5 BOINVESTERING AS 3.47 NOR 2,852,862 6 EIKESTAD AS 3.16 NOR 2,600,000 7 GAMS