Atea Asa · OSL:ATEA

Atea Asa — Q4 2018 Earnings Presentation

36 slides from Atea Asa's earnings presentation, Feb 7, 2019

  1. Slide 1: Q4 2018 Presentation

    Q4 2018 PRESENTATION 7 February 2019

  2. Slide 2: Record high revenue and cash flow in Q4 2018

    Record high revenue and cash flow in Q4 2018 Solid growth in revenue and operating profit outside of Denmark In Denmark, business starts to recover, driven by increased demand from public sector Record high revenue of NOK 10.2 billion (NOK 10.0 billion in Q4 2017) ‒ Currency effect of -1.7% on Group

  3. Slide 3: Norway

    Norway Revenue slows but gross margins improve from last year Less seasonal concentration of revenue in Q4 relative to prior year REVENUE EBIT -2.7% -0.5% 119 118 Product revenue -4.8% 2,762 2,688 NOK in million Service revenue +6.6% NOK in million Gross profit +6.5% Operating expenses +8.2% Q4 17 Q

  4. Slide 4: Sweden

    Sweden Atea continues to capture market share and increase profitability across all lines of business REVENUE EBIT +12.0% +8.9% Product revenue +10.9% 4,305 156 144 3,842 Service revenue +18.3% SEK in million SEK in million Gross profit +10.8% Operating expenses +11.3% Q4 17 Q4 18 Q4 17 Q4 18

  5. Slide 5: Denmark

    Denmark Business returns to profitability in Q4, as sales to public sector improve following court conviction in June 2018 REVENUE EBIT -4.4% -76 MDKK Product revenue -3.3% 1,938 84 1,852 Service revenue -8.4% DKK in million DKK in million Gross profit -18.3% 8 Operating expenses 0.0% Q4 17 Q4 18 Q4

  6. Slide 6: Finland

    Finland Rapid growth in EBIT driven by very strong sales of products REVENUE EBIT +16.9% +36.1% Product revenue 19.3% 76 2.9 65 Service revenue -1.8% EUR in million EUR in million 2.2 Gross profit +13.2% Operating expenses +7.6% Q4 17 Q4 18 Q4 17 Q4 18

  7. Slide 7: Baltics

    Baltics EBIT growth driven by higher service revenue and lower operating expenses REVENUE EBIT -8.5% +2.1% Product revenue -11.4% 44 41 1.6 1.6 Service revenue +3.0% EUR in million EUR in million Gross profit -3.4% Operating expenses -4.6% Q4 17 Q4 18 Q4 17 Q4 18

  8. Slide 8: Cash flow from operations

    Cash flow from operations Record high cash flow from operations of NOK 2,284 million 2,284 Cash flow from operations is highly 1,765 concentrated in Q4 due to seasonal fluctuations in working capital Net debt balance of NOK 17 million at Q1 18 Q2 18 Q3 18 year end Q4 17 Q4 18 -302 -196 -841

  9. Slide 9: Financial summary – full year 2018

    Financial summary – full year 2018 Strong revenue and EBIT growth across all markets except Denmark REVENUE EBIT CURRENCY: Local in million 2018 2017 2018 2017 GROWTH % GROWTH % Full year Full year Full year Full year NORWAY, NOK 8,737.1 8,270.9 5.6 % 308.3 265.7 16.0% SWEDEN, SEK 15,004.8 12,788.4

  10. Slide 10: 2019 and beyond

    2019 and beyond

  11. Slide 11: Information Management, Digital Workplace, Hybrid Platforms

    Information Management Digital Workplace Hybrid Platforms

  12. Slide 12: Reseller, Integrator, Service Provider

    #1 #1 #1 Reseller Integrator Service Provider Life Cycle Management Professional Services Managed Services

  13. Slide 13: For video go to: atea.com/investors/financial-reports/

    For video go to: atea.com/investors/financial-reports/

  14. Slide 14: Information Management, Digital Workplace, Hybrid Platforms

    Information Management Digital Workplace Hybrid Platforms

  15. Slide 15: Q4 2018 Fact Pack

    ATCR vane FACT PACK

  16. Slide 16: Highlights – Group

    Highlights – Group Q4 Q4 Full year Full year NOK in million 2018 2017 2018 2017 Group revenue 10,172 10,015 34,709 32,438 Gross margin (%) 20.9% 21.2% 21.7% 22.3% EBIT 309 392 690 799 EBIT margin (%) 3.0% 3.9% 2.0% 2.5% Net profit 204 265 467 543 Earnings per share (NOK) 1.88 2.49 4.33 5.10 Diluted

  17. Slide 17: Consolidated statement of financial position - Group

    Consolidated statement of financial position - Group NOK in million 31 Dec 2018 31 Dec 2017 ASSETS Property, plant and equipment 617 628 Deferred tax assets 401 487 Goodwill 3,901 3,845 Other intangible assets 237 273 Investment in associated companies 13 12 Other long-term receivables 28 6 Non-curr

  18. Slide 18: Full-time employees - Group

    Full-time employees - Group FTEs, end of period 31 Dec 2018 31 Dec 2017 Norway 1,678 1,573 Sweden 2,497 2,248 Denmark 1,515 1,475 Finland 356 318 Baltics 665 678 Logistics 237 222 Atea Global Services 382 381 Atea ASA 10 9 AppXite 45 0 Atea Group 7,385 6,904

  19. Slide 19: Financial performance actual – Segment

    Financial performance actual – Segment NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Norway 1,734.8 1,910.0 1,863.6 2,762.4 1,901.4 2,004.4 2,143.7 2,687.7 Sweden 2,690.0 3,408.7 2,521.8 3,758.6 3,314.4 3,932.0 2,780.3 4,022.3 Denmark 2,010.8 2,257.7 1,659.7 2,490.4 2,011.3 2,306.3

  20. Slide 20: Financial performance pro forma – Segment

    Financial performance pro forma – Segment NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Norway 1,753.8 1,925.7 1,876.8 2,780.7 1,920.2 2,022.2 2,158.8 2,687.7 Sweden 2,690.0 3,408.7 2,521.8 3,758.6 3,314.4 3,932.0 2,780.3 4,022.3 Denmark 2,010.8 2,257.7 1,659.7 2,490.4 2,011.3 2,306

  21. Slide 21: Income statement actual - Group (NOK million)

    Income statement actual - Group (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 4,049.9 4,085.5 4,067.0 5,840.1 4,484.1 4,601.2 4,357.6 5,661.6 Software revenue 1,839.4 2,789.5 1,131.4 2,431.0 2,328.8 2,854.8 1,291.3 2,688.5 Products revenue 5,889.3 6,87

  22. Slide 22: Income statement pro forma - Group (NOK million)

    Income statement pro forma - Group (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 4,049.9 4,085.5 4,067.0 5,840.1 4,484.1 4,601.2 4,357.6 5,661.6 Software revenue 1,839.4 2,789.5 1,131.4 2,431.0 2,328.8 2,854.8 1,291.3 2,688.5 Products revenue 5,889.3 6

  23. Slide 23: Income statement actual – Norway (NOK million)

    Income statement actual – Norway (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 977.2 1,055.7 1,147.9 1,745.9 1,065.1 1,178.9 1,331.7 1,617.5 Software revenue 313.2 405.8 280.9 516.7 377.7 349.8 356.7 537.5 Products revenue 1,290.4 1,461.4 1,428.8 2,262

  24. Slide 24: Income statement pro forma – Norway (NOK million)

    Income statement pro forma – Norway (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 977.2 1,055.7 1,147.9 1,745.9 1,065.1 1,178.9 1,331.7 1,617.5 Software revenue 313.2 405.8 280.9 516.7 377.7 349.8 356.7 537.5 Products revenue 1,290.4 1,461.4 1,428.8 2,

  25. Slide 25: Income statement actual – Denmark (DKK million)

    Income statement actual – Denmark (DKK million) DKK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 965.3 782.8 756.4 1,105.4 835.7 806.0 572.8 959.3 Software revenue 319.1 643.4 188.6 404.0 405.0 612.5 150.9 500.5 Products revenue 1,284.4 1,426.2 945.0 1,509.4 1,240.7 1,

  26. Slide 26: Income statement actual – Denmark (NOK million)

    Income statement actual – Denmark (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 1,166.4 990.8 952.4 1,418.0 1,080.9 1,033.6 735.3 1,237.8 Software revenue 385.6 802.1 241.4 521.2 523.9 786.8 193.0 645.8 Products revenue 1,551.9 1,792.9 1,193.9 1,939.2

  27. Slide 27: Income statement actual – Sweden (SEK million)

    Income statement actual – Sweden (SEK million) SEK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 1,518.7 1,619.5 1,610.4 2,057.9 1,836.3 2,021.7 1,941.4 2,235.2 Software revenue 819.8 1,375.1 493.2 1,193.6 1,028.8 1,588.2 552.5 1,371.2 Products revenue 2,338.4 2,994.6 2

  28. Slide 28: Income statement actual – Sweden (NOK million)

    Income statement actual – Sweden (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 1,435.3 1,565.8 1,574.6 2,012.9 1,774.4 1,873.3 1,786.9 2,088.2 Software revenue 774.8 1,324.2 491.3 1,167.2 994.1 1,480.2 495.8 1,281.3 Products revenue 2,210.1 2,889.9 2,0

  29. Slide 29: Income statement actual – Finland (EUR million)

    Income statement actual – Finland (EUR million) EUR in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 38.4 35.4 26.6 37.8 39.8 36.3 37.1 47.9 Software revenue 39.7 24.6 10.8 19.9 43.8 23.8 24.3 20.9 Products revenue 78.2 60.1 37.4 57.7 83.6 60.1 61.4 68.8 Total services rev

  30. Slide 30: Income statement actual – Finland (NOK million)

    Income statement actual – Finland (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 345.3 332.7 249.9 361.9 383.4 346.6 355.5 461.2 Software revenue 356.8 233.9 103.2 193.2 421.6 226.4 232.8 201.9 Products revenue 702.1 566.5 353.1 555.1 805.0 573.0 588.3

  31. Slide 31: Income statement actual – Baltics (EUR million)

    Income statement actual – Baltics (EUR million) EUR in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 12.8 14.1 14.6 29.4 16.6 16.1 15.6 25.8 Software revenue 1.9 4.0 2.3 6.2 1.9 3.1 2.5 5.7 Products revenue 14.7 18.1 16.9 35.5 18.5 19.2 18.1 31.5 Total services revenue 6.7

  32. Slide 32: Income statement actual – Baltics (NOK million)

    Income statement actual – Baltics (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 115.0 131.8 136.6 277.8 159.8 153.8 149.9 248.5 Software revenue 17.5 37.1 21.8 58.3 18.6 29.2 23.5 54.5 Products revenue 132.4 168.9 158.4 336.2 178.4 183.0 173.4 302.9 To

  33. Slide 33: Income statement actual – Shared services (NOK million)

    Income statement actual – Shared services (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 971.1 1,035.9 1,161.9 1,349.0 1,165.7 1,213.1 1,311.0 1,431.7 Software revenue 1.2 1.9 2.9 2.4 0.7 0.7 0.7 1.2 Products revenue 972.4 1,037.8 1,164.7 1,351.5 1,166.

  34. Slide 34: Income statement actual – AppXite (EUR million)

    Income statement actual – AppXite (EUR million) EUR in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Software revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Products revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total services revenue 0.0 0.0 0.0 0.0 0.5

  35. Slide 35: Income statement actual – AppXite (NOK million)

    Income statement actual – AppXite (NOK million) NOK in million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Hardware revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Software revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Products revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total services revenue 0.0 0.0 0.0 0.0 4.7

  36. Slide 36: Specialists in IT infrastructure

    AICR Specialists in IT infrastructure

Atea — Q4 2018 Earnings Presentation on 6ix