Atea Asa · OSL:ATEA
Atea Asa — Q1 2022 Earnings Presentation
31 slides from Atea Asa's earnings presentation, Apr 28, 2022
Slide 1: Q1 2022 Presentation
Q1 2022 Presentation April 28, 2022
Slide 2: Highlights – Q1 2022
Highlights – Q1 2022 Improved sales and EBIT, despite hardware supply chain constraints Gross sales of NOK 10.1 billion – an increase of 5% in constant currency • Strong constant currency growth in sales of software (+15%) and services (+11%) EBIT of NOK 183 million – up 4% from a very strong compar
Slide 3: Income Statement – Q1 2022
Income Statement – Q1 2022 Currency: MNOK Q1 2022 Q1 2021 Growth Comments: Hardware 4,810 5,166 -6.9% Software 3,231 2,912 10.9% • Gross sales grow by 4.9% in constant currency. Services 2,045 1,920 6.5% Currency movements impact sales growth by -3.9% • Growth in sales driven by strong demand Gross
Slide 4: Gross sales trend analysis
Gross sales trend analysis MNOK Constant currency growth Ex-NGO agreement: 10.9% Service Comments: growth 10.8% Software Adjusting for currency movements and the growth Hardware 15.4% extraordinary global NGO delivery last year: Growth 8.1% • Gross sales grow by 10.9% (organic growth in constant cur
Slide 5: Gross sales to Revenue (IFRS)
Gross sales to Revenue (IFRS) • Atea has implemented a change in accounting policy to conform with an IFRS IC Agenda Decision on April 20, 2022 • Under the new policy: – The resale of software and vendor services is recognized on a net basis based on the principal/agent criteria in IFRS 15 – Cost of
Slide 6: EBIT trend analysis
EBIT trend analysis Continued growth from strong Q1 2021 Comments: EBIT CAGR of 16% from Q1 2019 – Q1 2022 • Restructuring costs in Denmark results in lower EBIT in Q1 2020 • Very strong performance in Q1 2021 and continued improvement in Q1 2022 Higher EBIT in Q1 2022 driven by growth in Sweden (up
Slide 7: Cash flow from operations
CURRENCY: MNOK Q1 2022 Q1 2021 Cash earnings 224 293 Cash Changes in working capital flow from (excluding sale of receivables) -791 -568 operations Cash flow from operations, before -567 -275 Cash flow from operations of sale of receivables NOK -0.7 billion in Q1 2022 Change in sale of receivables -
Slide 8: Net financial position
Net CURRENCY: MNOK 31-Mar 2022 31-Mar 2021 financial Interest-bearing liabilities -779 -532 position Cash and cash equivavlents 629 796 Net financial position* -150 263 Net financial position* of NOK -150 million EBITDA - rolling 4 Q* 1,658 1,640 Net debt / EBITDA ratio of 0.1 Net debt / EBITDA, end
Slide 9: Capital allocation
Dividend: Share buyback: NOK 5.50 per share has been The Board will request that the proposed to the 2022 AGM, 2022 AGM renew its mandate to equivalent to 80% of 2021 EPS authorize a share buyback The dividend will be paid in two Atea repurchased 1 million of its equal instalments in May and own sha
Slide 10: Acquisition of KMD infrastructure resale business
Acquisition of KMD infrastructure resale business IT infrastructure resale business based in Denmark • Sells hardware and standard software to customers primarily to the Danish public sector • Strong alignment with Atea’s product portfolio and strategic partners • 24 employees across three office lo
Slide 11: Acquisition of Gambit Group
Acquisition of Gambit Group IT Services provider based in Vaasa, Finland • Specialist in information management solutions, including Financial information data analytics, machine learning and related system development Gross sales of approximately EUR 4 million in the fiscal year ending March 2022,
Slide 12: Divestment of eRate
Divestment of eRate Mobile service platform provider sold to Televox • Atea Norway acquired a 17.5% minority stake in the mobile service platform provider eRate for NOK 10 million in May 2017 • The acquisition of shares was part of a broader commercial partnership with eRate when Atea Norway launche
Slide 13: Divestment of Atea Mobil
Divestment of Atea Mobil Mobile service provider business in Norway sold to Nortel • In April 2022, Atea Norway entered an agreement to sell Atea Mobil to Nortel for NOK 72.5 million • The sale agreement is expected to close in early May • Eight employees will be transferred to Nortel as part of the
Slide 14: Summary – Q1 2022
Summary – Q1 2022 Gross sales of NOK 10.1 billion Net profit of NOK 131 million Up 4.9% in constant currency Up 2.4% EBIT of NOK 183 million Net financial position of NOK -150 million EBIT Up 3.6% (0.1 x EBITDA*) * Net debt and EBITDA as defined in Atea’s loan covenants. EBITDA for last 4 quarters
Slide 15: We build the future with IT.
We build the future with IT.
Slide 16: Q1 2022 Presentation – Fact pack
Q1 2022 Presentation Fact pack April 28, 2022
Slide 17: Highlights – Group
Highlights – Group Q1 Q1 Full year NOK in million 2022 2021 2021 Gross sales 10,085 9,999 41,316 Revenue (IFRS) 6,906 7,185 28,491 Gross profit 2,092 2,084 8,446 EBIT 183 176 1,046 EBIT margin (%) 2.6% 2.5% 3.7% Net profit 131 128 763 Earnings per share (NOK) 1.17 1.16 6.86 Diluted earnings per shar
Slide 18: Consolidated statement of financial position – Group
Consolidated statement of financial position – Group NOK in million 31 Mar 2022 31 Mar 2021 31 Dec 2021 ASSETS Property, plant and equipment 466 511 493 Right-of-use assets 1,201 1,201 1,200 Deferred tax assets 278 299 276 Goodwill 3,858 3,940 3,942 Other intangible assets 332 285 328 Long-term subl
Slide 19: Full-time employees – Group
Full-time employees – Group FTEs, end of period 31 Mar 2022 31 Mar 2021 Norway 1,755 1,662 Sweden 2,562 2,466 Denmark 1,421 1,362 Finland 454 414 Baltics 680 628 Logistics 265 234 Atea Global Services 536 453 Atea ASA 9 10 AppXite 49 48 Atea Group 7,731 7,277
Slide 20: Financial performance – Segment
Financial performance – Segment NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Norway 1,721.0 1,772.3 1,682.9 2,079.0 1,746.9 Sweden 2,582.4 2,607.1 2,618.4 3,259.9 2,672.4 Denmark 2,054.2 1,574.9 1,406.4 1,738.9 1,622.0 Finland 584.9 559.4 552.3 615.7 602.9 The Baltics 253.6 273.0 301.5 425.3 297.0 G
Slide 21: Income statement – Group (NOK million)
Income statement – Group (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Hardware 5,166.3 4,689.5 4,655.2 5,701.3 4,809.7 Software 2,912.3 4,273.0 2,074.0 3,867.6 3,230.7 Product sales 8,078.6 8,962.6 6,729.2 9,569.0 8,040.4 Services sales 1,920.2 1,965.6 1,796.1 2,294.3 2,044.5 Gross sal
Slide 22: Income statement – Norway (NOK million)
Income statement – Norway (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Product sales 1,684.2 1,826.5 1,673.5 2,448.1 1,994.7 Services sales 564.3 551.1 519.6 605.2 549.6 Gross sales 2,248.5 2,377.6 2,193.1 3,053.2 2,544.3 Product margin (%) 11.5% 11.9% 11.1% 10.7% 10.6% Services margin
Slide 23: Income statement – Sweden (SEK million)
Income statement – Sweden (SEK million) SEK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Product sales 3,076.1 3,959.8 2,782.8 4,196.1 3,599.3 Services sales 755.4 793.3 636.1 937.3 820.7 Gross sales 3,831.5 4,753.1 3,418.8 5,133.4 4,420.0 Product margin (%) 11.6% 9.4% 11.6% 10.0% 10.2% Services margin
Slide 24: Income statement – Sweden (NOK million)
Income statement – Sweden (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Product sales 3,120.7 3,949.0 2,822.6 4,149.1 3,412.1 Services sales 766.3 789.7 645.0 926.9 778.0 Gross sales 3,887.1 4,738.7 3,467.6 5,076.0 4,190.2 Product margin (%) 11.6% 9.3% 11.6% 10.0% 10.2% Services margin
Slide 25: Income statement – Denmark (DKK million)
Income statement – Denmark (DKK million) DKK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Product sales 1,497.1 1,724.0 942.3 1,427.3 1,237.6 Services sales 320.8 376.9 346.8 402.1 412.5 Gross sales 1,817.9 2,100.9 1,289.1 1,829.4 1,650.1 Product margin (%) 8.1% 6.9% 11.9% 10.0% 9.4% Services margin (%)
Slide 26: Income statement – Denmark (NOK million)
Income statement – Denmark (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Product sales 2,066.2 2,341.6 1,317.7 1,914.7 1,652.0 Services sales 442.7 512.1 481.7 540.5 550.7 Gross sales 2,508.9 2,853.6 1,799.4 2,455.3 2,202.7 Product margin (%) 8.1% 6.9% 11.8% 10.1% 9.4% Services margin (
Slide 27: Income statement – Finland (EUR million)
Income statement – Finland (EUR million) EUR in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Product sales 97.0 65.2 66.9 70.2 78.3 Services sales 9.7 9.8 9.4 11.6 8.9 Gross sales 106.7 74.9 76.3 81.9 87.2 Product margin (%) 8.4% 11.5% 9.8% 10.9% 10.2% Services margin (%) 52.6% 53.3% 57.8% 53.5% 59.4% Gros
Slide 28: Income statement – Finland (NOK million)
Income statement – Finland (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Product sales 995.2 654.7 692.5 699.4 777.9 Services sales 99.8 98.6 96.9 116.5 88.0 Gross sales 1,095.0 753.3 789.4 815.9 865.9 Product margin (%) 8.4% 11.5% 9.8% 10.9% 10.2% Services margin (%) 52.6% 53.3% 57.7%
Slide 29: Income statement – Baltic (EUR million)
Income statement – Baltic (EUR million) EUR in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Product sales 20.3 19.8 21.1 34.0 21.0 Services sales 9.4 9.9 10.5 13.1 10.9 Gross sales 29.7 29.7 31.6 47.2 31.8 Product margin (%) 10.1% 12.0% 12.5% 13.0% 13.3% Services margin (%) 68.3% 66.7% 64.0% 60.4% 61.1% Gr
Slide 30: Income statement – Baltic (NOK million)
Income statement – Baltic (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Product sales 208.7 199.6 218.2 342.0 208.3 Services sales 96.2 99.7 108.2 131.6 107.8 Gross sales 304.9 299.2 326.4 473.6 316.1 Product margin (%) 10.1% 12.1% 12.4% 13.0% 13.3% Services margin (%) 68.3% 66.6% 64.0%
Slide 31: Income statement – Group Shared Services (NOK million)
Income statement – Group Shared Services (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Product sales 1,579.3 1,393.1 1,760.8 2,035.9 1,900.3 Services sales 139.7 142.6 151.9 159.2 194.6 Gross sales 1,719.0 1,535.7 1,912.7 2,195.1 2,095.0 Product margin (%) 2.6% 2.9% 2.4% 2.7% 1.3% Servi