Atea Asa · OSL:ATEA
Atea Asa — Q3 2015 Earnings Presentation
48 slides from Atea Asa's earnings presentation, Oct 21, 2015
Slide 1: Q3 2015 presentation
21 October 2015 Q3 2015 presentation
Slide 2: Q3 Highlights
Q3 Highlights • Revenue of NOK 5 957 million, up 15.2% • EBITDA* of NOK 214 million, up 4.1% • Rapid sales growth in software and services • Very strong performance in Sweden and the Baltics • Sequential improvement in Norway and Denmark * Before share-based compensation, expenses related to acquisi
Slide 3: Financial Highlights
Financial Highlights EBITDA* returns to growth, based on strong sales performance Revenue EBITDA* +15.2% 4.1% 5 957 214 NOK in million NOK in million 205 5 173 Q3 14 Q3 15 Q3 14 Q3 15 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 4: Group hardware revenue
Group hardware revenue Growth vs corresponding quarter last year 17.1 % 17.7 % 14.3 % 12.5 % 11.3 % Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Gross margin development 12.7 % 13.1 % 13.4 % 13.2 % 13.2 % Q3 14 Q4 14 Q1 15 Q2 15 Q3 15
Slide 5: Group software revenue
Group software revenue Growth vs corresponding quarter last year 27.0 % 11.1 % 8.2 % 5.5 % -1.6 % Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Gross margin development 17.1 % 14.3 % 10.9 % 11.0 % 8.6 % Q3 14 Q4 14 Q1 15 Q2 15 Q3 15
Slide 6: Group services revenue
Group services revenue Growth vs corresponding quarter last year 20.2 % 14.8 % 4.6 % 4.2 % 1.8 % Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Gross margin development 66.5 % 67.2 % 64.0 % 64.6 % 64.1 % Q3 14 Q4 14 Q1 15 Q2 15 Q3 15
Slide 7: Norway
Norway Revenue growth, but lower EBITDA* due to higher operating expense Revenue EBITDA* b +11.5% b -14.6% 1 689 57 NOK in million NOK in million 1 514 49 Q3 14 Q3 15 Q3 14 Q3 15 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 8: Sweden
Sweden Continued strong performance, both in revenue and EBITDA* Revenue EBITDA* +12.8% b +51.4% b 78 2 224 SEK in million SEK in million 1 972 51 Q3 14 Q3 15 Q3 14 Q3 15 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 9: Denmark
Denmark Revenue slows, resulting in lower EBITDA* Revenue EBITDA* -1.9% b -21.9% b 1 283 1 258 77 DKK in million DKK in million 60 Q3 14 Q3 15 Q3 14 Q3 15 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 10: Finland
Finland Weaker Q3 sales, but large new contract wins to drive volumes in 2016 Revenue EBITDA* -11.6% b -47.9% b 39 0.6 34 EUR in million EUR in million 0.3 Q3 14 Q3 15 Q3 14 Q3 15 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 11: The Baltics
The Baltics Strong organic growth, plus acquisition of Baltneta Revenue EBITDA* +37.2% b +110.0% b 29 1.8 EUR in million EUR in million 21 0.9 Q3 14 Q3 15 Q3 14 Q3 15 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 12: Cash flow from operations
Cash flow from operations Q3 cash flow in line with historic average; high seasonal cash flow expected in Q4 786 NOK in million 25 -63 -104 -134 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15
Slide 13: Country overview
Country overview Large variance in country performance in Q3 • Sweden and Baltics performing very well • Norway and Denmark improve from Q2, with cost reduction measures underway • Disappointing sales quarter in Finland, but large contract wins will drive revenue in 2016
Slide 14: Norway
Norway Reducing cost and reorganizing parts of business • Norway’s financial performance has slowed in recent years – Weaker energy sector impacts market for IT – Atea’s growth premium vs. market has fallen – Operating expenses have increased ahead of revenue • Country manager replaced in April 2015
Slide 15: Sweden
Sweden Very strong organic growth since 2013, outpacing the market • Stronghold in public sector – Aggressively winning new frame agreements – Leveraging frame agreements for new business opportunities • Expanding within the private sector – Push into SMB market in Stockholm, Gothenburg and Malmo –
Slide 16: Denmark
Denmark Reducing cost to adjust to near-term revenue expectations • Bribery case continues to impact business – Customer activity stabilized and improved throughout quarter • Hardware business has fallen from 2014 – Mobile phone brokering agreements (high revenue / very low margin) increased in 2014
Slide 17: Finland
Finland Disappointing Q3 sales, but large new contracts to drive revenue in 2016 • Historically Atea’s most challenging market – Highly dependent on product sales, as services business is least established • IT market is pressured by weak economy – Natural resources and mobile sectors have suffered
Slide 18: Baltics
Baltics Very strong and growing position in Baltic market, especially in Lithuania • Public sector demand for IT projects is heavily dependent on EU funding – Drives volatility in business • Private sector seeing improved market conditions – Many smaller orders from SMB customers – Market recovery f
Slide 19: Specialists in IT infrastructure
ATCR Specialists in IT infrastructure ATER
Slide 20: Q3 2015 Fact pack
Q3 2015 Fact pack ATER
Slide 21: Key numbers - Group
Key numbers - Group Q3 Q3 YTD YTD Full year 2015 2014 2015 2014 2014 Group revenue (NOK in million) 5,957 5,173 19,298 17,039 24,588 Gross margin (%) 24.5 24.6 23.5 23.6 23.3 EBITDA (NOK in million) * 214 205 573 563 958 EBITDA margin (%) * 3.6 4.0 3.0 3.3 3.9 EBIT (NOK in million) 106 117 263 297 5
Slide 22: Consolidated statement of financial position - Group
Consolidated statement of financial position - Group NOK in million 30 Sep 2015 30 Sep 2014 31 Dec 2014 ASSETS Property, plant and equipment 700 492 613 Deferred tax assets 547 557 546 Goodwill 3,768 3,045 3,588 Other intangible assets 355 276 369 Shares in associated companies 8 0 9 Other long-term
Slide 23: Full-time employees - Group
Full-time employees - Group 30 Sep 2015 30 Sep 2014 Norway 1,676 1,607 Sweden 1,942 1,802 Denmark 1,581 1,319 Finland 326 329 Baltics 713 559 Logistics 202 211 Atea Global Services 316 319 Atea ASA 9 12 Atea Group 6,765 6,158
Slide 24: Financial performance actual – Segment (NOK million)
Financial performance actual – Segment (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Norway 1,569.6 1,614.6 1,513.9 2,108.3 1,622.1 1,713.4 1,688.5 Sweden 2,137.6 2,332.6 1,764.7 2,657.9 2,324.5 2,772.1 2,171.0 Denmark 1,548.3 1,487.6 1,424.4 2,043.2 1,825.0 1,727.
Slide 25: Financial performance proforma – Segment (NOK million)
Financial performance proforma – Segment (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Norway 1,642.3 1,684.1 1,570.4 2,192.5 1,622.1 1,713.4 1,688.5 Sweden 2,137.6 2,332.6 1,764.7 2,657.9 2,324.5 2,772.1 2,171.0 Denmark 1,672.6 1,662.8 1,558.2 2,198.2 1,825.0 1,72
Slide 26: Income statement actual - Group (NOK million)
Income statement actual - Group (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 3,283.1 3,030.7 3,430.4 4,467.5 3,694.6 3,568.4 3,817.4 Software revenue 1,347.3 1,728.6 650.7 1,637.6 1,496.7 1,870.9 826.6 Products revenue 4,630.4 4,759.3 4,081.1 6,10
Slide 27: Income statement proforma - Group (NOK million)
Income statement proforma - Group (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 3,435.1 3,206.2 3,564.9 4,638.0 3,696.0 3,568.4 3,817.4 Software revenue 1,349.7 1,728.6 650.7 1,637.6 1,496.7 1,870.8 826.6 Products revenue 4,784.8 4,934.7 4,215.6 6,
Slide 28: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 925.4 910.5 998.2 1,210.1 940.8 1,023.8 1,073.2 Software revenue 257.2 312.3 168.3 455.2 282.9 263.2 216.4 Products revenue 1,182.6 1,222.8 1,166.4 1,665.3 1,223.7 1,287
Slide 29: Income statement proforma – Norway (NOK million)
Income statement proforma – Norway (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 994.8 976.7 1,051.7 1,294.2 940.8 1,023.8 1,073.2 Software revenue 257.2 312.3 168.3 455.2 282.9 263.2 216.4 Products revenue 1,252.1 1,289.0 1,220.0 1,749.4 1,223.7 1
Slide 30: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) (amounts in DKK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 850.0 740.5 869.4 1,130.6 976.4 783.8 803.6 Software revenue 223.3 305.7 123.5 286.6 221.9 343.3 126.1 Products revenue 1,073.3 1,046.2 992.9 1,417.2 1,198.3 1,127.1 92
Slide 31: Income statement proforma – Denmark (DKK million)
Income statement proforma – Denmark (DKK million) (amounts in DKK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 911.7 838.7 941.1 1,203.9 976.4 783.8 803.6 Software revenue 223.3 305.7 123.5 286.6 221.9 343.3 126.1 Products revenue 1,135.0 1,144.4 1,064.6 1,490.5 1,198.3 1,127.
Slide 32: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 950.7 813.3 965.2 1,294.6 1,144.4 896.1 988.0 Software revenue 249.8 336.9 137.3 328.5 260.0 395.1 161.4 Products revenue 1,200.5 1,150.2 1,102.5 1,623.1 1,404.4 1,291.
Slide 33: Income statement proforma – Denmark (NOK million)
Income statement proforma – Denmark (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 1,019.7 921.6 1,044.8 1,379.4 1,144.4 896.1 988.0 Software revenue 249.8 336.9 137.3 328.5 260.0 395.1 161.4 Products revenue 1,269.5 1,258.6 1,182.1 1,707.9 1,404.4
Slide 34: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) (amounts in SEK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 1,184.4 1,107.8 1,269.1 1,616.5 1,384.8 1,400.1 1,457.2 Software revenue 596.3 975.8 290.7 717.0 647.8 1,108.1 360.1 Products revenue 1,780.7 2,083.6 1,559.9 2,333.5 2,0
Slide 35: Income statement proforma – Sweden (SEK million)
Income statement proforma – Sweden (SEK million) (amounts in SEK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 1,184.4 1,107.8 1,269.1 1,616.5 1,384.8 1,400.1 1,457.2 Software revenue 596.3 975.8 290.7 717.0 647.8 1,108.1 360.1 Products revenue 1,780.7 2,083.6 1,559.9 2,333.5 2
Slide 36: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 1,116.1 1,003.3 1,142.8 1,494.2 1,288.7 1,288.2 1,410.3 Software revenue 561.9 891.7 252.8 663.5 602.8 1,021.9 364.1 Products revenue 1,678.0 1,895.0 1,395.6 2,157.6 1,8
Slide 37: Income statement proforma – Sweden (NOK million)
Income statement proforma – Sweden (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 1,116.1 1,003.3 1,142.8 1,494.2 1,288.7 1,288.2 1,410.3 Software revenue 561.9 891.7 252.8 663.5 602.8 1,021.9 364.1 Products revenue 1,678.0 1,895.0 1,395.6 2,157.6 1
Slide 38: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) (amounts in EUR million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 21.0 24.4 24.3 29.5 20.7 27.5 22.7 Software revenue 32.4 21.6 9.2 19.6 39.2 19.4 6.3 Products revenue 53.4 45.9 33.5 49.2 59.9 46.9 29.0 Total services revenue 5.5 5.6
Slide 39: Income statement proforma – Finland (EUR million)
Income statement proforma – Finland (EUR million) (amounts in EUR million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 22.6 24.4 24.3 29.5 20.7 27.5 22.7 Software revenue 32.7 21.6 9.2 19.6 39.2 19.4 6.3 Products revenue 55.3 45.9 33.5 49.2 59.9 46.9 29.0 Total services revenue 5.8 5.
Slide 40: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 175.5 200.2 201.0 252.3 180.6 235.9 208.3 Software revenue 270.5 176.3 75.7 169.0 342.5 163.9 65.2 Products revenue 446.0 376.5 276.7 421.3 523.1 399.8 273.4 Total serv
Slide 41: Income statement proforma – Finland (NOK million)
Income statement proforma – Finland (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 188.3 200.1 201.0 252.5 180.6 235.9 208.3 Software revenue 273.0 176.3 75.7 169.0 342.5 163.9 65.2 Products revenue 461.3 376.3 276.7 421.5 523.1 399.8 273.4 Total se
Slide 42: Income statement actual – the Baltics (EUR million)
Income statement actual – the Baltics (EUR million) (amounts in EUR million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 12.5 12.1 13.7 24.6 14.8 14.5 14.8 Software revenue 3.9 3.3 3.1 3.5 4.0 3.4 3.2 Products revenue 16.4 15.4 16.9 28.1 18.7 17.8 18.1 Total services revenue 3.7 4.1 4
Slide 43: Income statement proforma – the Baltics (EUR million)
Income statement proforma – the Baltics (EUR million) (amounts in EUR million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 12.6 12.2 13.9 24.8 14.9 14.5 14.8 Software revenue 3.9 3.3 3.1 3.5 4.0 3.3 3.2 Products revenue 16.5 15.5 17.0 28.3 18.9 17.8 18.1 Total services revenue 5.3 5.7
Slide 44: Income statement actual – the Baltics (NOK million)
Income statement actual – the Baltics (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 104.2 99.4 113.7 208.5 129.0 123.8 135.7 Software revenue 32.7 26.7 25.7 30.3 34.6 28.6 29.5 Products revenue 136.9 126.0 139.4 238.8 163.6 152.4 165.1 Total servic
Slide 45: Income statement proforma – the Baltics (NOK million)
Income statement proforma – the Baltics (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 104.9 100.4 115.1 210.0 130.4 123.8 135.7 Software revenue 32.7 26.7 25.7 30.3 34.6 28.5 29.5 Products revenue 137.6 127.1 140.8 240.3 164.9 152.4 165.1 Total ser
Slide 46: Income statement actual – Shared services (NOK million)
Income statement actual – Shared services (NOK million)* (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 983.3 927.1 1,091.9 1,064.9 889.6 953.7 1,190.1 Software revenue 2.2 2.1 1.7 2.5 2.8 2.2 2.8 Products revenue 985.6 929.2 1,093.6 1,067.4 892.3 955.9 1,193.0 T
Slide 47: Income statement proforma – Shared services (NOK million)
Income statement proforma – Shared services (NOK million)* (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Hardware revenue 983.3 927.1 1,091.9 1,064.9 889.6 953.7 1,190.1 Software revenue 2.2 2.1 1.7 2.5 2.8 2.2 2.8 Products revenue 985.6 929.2 1,093.6 1,067.4 892.3 955.9 1,193.0
Slide 48: Specialists in IT infrastructure
ATCR Specialists in IT infrastructure ATER