Slide 1: Q1 2021
Q1 2021
Slide 2: Agenda
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 2
Slide 3: Highlights Q1 2021
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Slide 4: Q1 in brief
Q1 in brief 11% Covid 19 creates strong market Growing strategic partnership with Geographic expansion in Building world class Delivery driven by DNV, Cognite and Bergen and Factory at Scale Growth in core digitalization and others around the Fredrikstad and Hybrid Cloud digital business sustainabil
Slide 5: Key figures core digital business
Key figures core digital business 11% 13% 15% Growth in number Organic revenue of employees Operating margin growth Revenues Employees EBIT 2019 2020 2021 NOK million End of period 2019 2020 2021 NOK million 2019 2020 2021 150 144 550 25 523 22.1 140 130 500 20 120 110 450 15 100 90 400 10 80 70 350
Slide 6: Business review
02 Business review 6
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Slide 8: Crisis accelerates digitalisation and sustainability
Crisis accelerates digitalisation and sustainability Survey by Gartner Survey by Mckinsey As response to COVID 19 The speed of adoption of 65% of CEOs will accelerate digital technologies is digital business increased by seven years transformation globally 8
Slide 9: Towards a sustainable future
Towards a sustainable future As B2B markets mature, new conditions drive the need for rapid change and transformation DIGITAL TRANSFORMATION INDUSTRIAL DIGITALISATION • Banking • Oil & gas and its green transition • • Insurance Public B2C • • Power & utilities Manufacturing B2B • Retail • Maritime •
Slide 10: Towards the fourth industrial revolution
Towards the fourth industrial revolution Social Municipal Command & Factory Control Center Optimisation Economy SUSTAINABLE Environment DIGITAL BUSINESSES Smart Logistics Grid Optimisation Traffic Flow Responsive Store Building Optimisation Optimisation Home Energy Management Comms Network Optimisat
Slide 11: Working together end-to-end to unlock new opportunities
Working together end-to-end to unlock new opportunities MODERN AGILE APPROACH DIGITAL CULTURE ATTRIBUTES DIGITAL PLATFORM CREATE VISION AGILITY DESIGN JOURNEY DIGITAL-FIRST MINDSET BUILD SOLUTIONS CUSTOMER-CENTRICITY BUILD DIGITAL DATA-INFORMED CAPABILITIES DECISION MAKING COLLABORATION PROVIDE SUPP
Slide 12: Delivery Factory at Scale for data-driven businesses
Delivery Factory at Scale for data-driven businesses Customer Business & Faster business innovation through Digital Strategy Innovation autonomous teams and adoption of cloud services CLOUD MIGRATION CUSTOMER DEVOPS …. ANALYTICS & DATAOPS Business agility and reduced time- WORKLOADS WORKLOADS Speed/
Slide 13: Growing strategic partnership with DNV around the world
ITERA Growing strategic partnership with DNV around the world Enable DNV to help From offices in A key focus is on customers towards 100+ countries, the green sustainable future DNV engages Itera transition to by combining deep in projects with renewables industry knowledge some of the across the wo
Slide 14: Geographic expansion in Bergen and Fredrikstad
Geographic expansion in Bergen and Fredrikstad OFFICE EXPANSION IN BERGEN NEW REGIONAL OFFICE IN FREDRIKSTAD • From 0 to 45 FTEs during last 2 years as ONE Itera with a • New office and local manager in place from 1st May in typical 1:3 ratio (local : distributed) Fredrikstad • Moving into new offic
Slide 15: Our in-depth mobile banking report creates high awareness
Our in-depth mobile banking report creates high awareness Sbanken has the best mobile banking app in Norway, followed by SpareBank 1 and DNB. ▪ This award is orchestrated by tera’s in-house analysis unit within banking and insurance, branded as Cicero Consulting ▪ The mobile banking report provides
Slide 16: Order intake
Order intake Order intake from selected new and existing customers Book-to-bill ratio*) of 1.0 in Q1 for core digital business and 1.3 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 16 16
Slide 17: Customer development
Customer development Revenue customers split (in MNOK) ▪ New business 100% 90% 14 18 17 20 20 16 11 12 18 ▪ Existing customers accounted for 88.5% 80% 70% (87.6%) of revenues in Q1 2021 60% 50% 129 126 155 ▪ New customers won over the past year 126 111 126 141 133 139 40% 30% generated revenues of N
Slide 18: Transformation of own data centre to the cloud
Transformation of own data centre to the cloud ▪ We are investing MNOK 15 in the world class Cloud Centre of Excellence that will provide a scaling 8% 1% engine for massive data 19 % ▪ Revenue from the data centre operations was down 59% to NOK 12 million in Q1 following the 92 % 99 % planned exit o
Slide 19: Skilled and innovative employees
Skilled and innovative employees Number of employees end of quarter by shore ▪ 567 employees at the end of the 600 52% 500 50% quarter 400 48% Core digital business up 19, data centre 300 46% ▪ 200 44% operations down 21 100 42% ▪ Core digital business up 62 year over 0 40% year, while data centre o
Slide 20: Financial review
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Slide 21: Financial reporting 2021
Financial reporting 2021 ▪ Given the sunsetting of the data centre operations, focus for financial reporting is on the core digital business, including the investment in the Cloud Centre of Excellence, 21
Slide 22: Key financials core digital business
Key financials core digital business 2021 2020 change change ▪ Strong growth of 11% fuelled by Amounts in NOK million 1-3 1-3 % some major new accounts and more subcontractors Sales revenue 144.4 130.7 13.7 10.5 % Cost of sales 12.0 9.0 3.0 33.2 % Gross profit Gross margin 132.4 91.7 % 121.7 93.1 %
Slide 23: Revenue and earnings development
Revenue and earnings development Quarterly Revenue and EBIT margin* ▪ Momentum picking up after front 180 18% loading of resources through Covid MNOK 160 16% in anticipation of growth 140 14% ▪ Margin improvements also aided by 120 12% Covid related cost avoidance 100 10% 80 8% ▪ Quarterly figures a
Slide 24: Subscription revenue from data centre operations
Subscription revenue from data centre operations MNOK 25 20 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 19 19 19 20 20 20 20 21 21 21 21 ▪ Subscription revenue from data centre operations will continue to drop as customers are migrated to cloud or exited 24
Slide 25: Segment reporting
Segment reporting Q1 2021 Q1 2020 Growth Core Data Data Core Data digital centre Core digital centre digital centre ▪ Data centre operations Amounts in NOK million business operations Total business operations Total business operations Total revenue MNOK 12.3 Sales revenue 144.4 12.3 156.7 130.7 30.
Slide 26: Statement of cash flow
Statement of cash flow 2021 2020 2020 12 month rolling NOK Million 1-3 1-3 FY cash flow from operations (NOK Million) Cash flow from operations (EBITDA) 25.8 29.3 108.9 Change in balance sheet items (24.6) (21.8) (9.7) 93 93 Net cash flow from operating activities 1.2 7.5 99.2 Net cash flow from inv
Slide 27: Dividend and own shares
Dividend and own shares ▪ The Board has proposed an ordinary dividend of NOK 0.25 per share based on 2020 results with possibility of a supplemental dividend later ▪ Share price was NOK 14.7 at the end of Q1 2021, an increase of 73% (80% incl. dividends) from NOK 8.5 at the end of Q1 2020. ▪ Current
Slide 28: Statement of financial position
Statement of financial position ▪ Equity ratio of 22% (26%) per 31 March Assets Equity and Liabilities 2021 300 ▪ 25% excl. IFRS 16 Leasing 250 41 ▪ Cash balance of MNOK Right-of-use assets 27 41 (MNOK 51) 200 59 Non-current 52 Current 158 assets Total balance reduced MNOK ▪ 150 158 liabilities by M
Slide 29: Outlook
04 Outlook 29
Slide 30: Outlook
Outlook Attractive market Strong position Core digital business Investment in world Larger projects and driven by through its end-to- will continue to grow class Cloud Centre customers expected sustainability and end services, world- at full speed. of Excellence, while to continue to digitalisation
Slide 31: Q&A
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Slide 32: Top shareholders
Top 20 shareholders No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS* 29.36 NOR 24 129 911 2 OP CAPITAL AS 5.45 NOR 4 478 110 3 GIP AS 4.88 NOR 4 010 000 4 EIKESTAD AS 4.26 NOR 3 500 000 5 SEPTIM CONSULTING AS 3.57 NOR 2 930 000 6 SPAREBANK 1 MARKETS AS 3.41 NOR 2 800 000 7 BOINVESTERING AS 3.22 N
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