Slide 1: We stand with Ukraine
ITERA
Slide 2: Agenda
Q4 REPORT 2022 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 Q4 2022
Q4 REPORT 2022 ITERA | 03 01 Highlights Q4 2022
Slide 4: Q4 in brief
Q4 REPORT 2022 ITERA | 04 Q4 in brief 29% Attractive market driven by the green energy shift, Growth is fuelled by leveraging our investments in Digital We continue to ramp up new offices in Central Europe to Our operation in Ukraine is running as normal. We really sustainability and Factory at Scal
Slide 5: Key figures
Q4 REPORT 2022 ITERA | 05 Key figures Q4 FY Q4 FY Q4 FY 29% 24% 13% 13% 9.5% 10.5% Organic revenue Growth in number Operating margin growth of employees Revenues Employees EBIT margin NOK million 2020 2021 2022 End of period 2020 2021 2022 % 2020 2021 2022 250 800 18% 701 698 205 700 642 661 16% 14.
Slide 6: Business review
Q4 REPORT 2022 ITERA | 06 02 Business review
Slide 7: We are specialists in sustainable digital transformation
Q4 REPORT 2022 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 m
Slide 8: Our steady growth organic model
Q4 REPORT 2022 ITERA | 09 Our steady growth organic model We continue our strong profitable growth Packaged offerings and Speed, reusability industrialised services and subscription trajectory while investing in our business Customer-centric and our people to increase our scalability and selected as
Slide 9: Our long-term ambition: annual net growth of 200-350 FTEs
Q4 REPORT 2022 ITERA | 10 Our long-term ambition: annual net growth of 200-350 FTEs Indeed, our long-term ambition is an annual organic net growth of 200-350 FTEs. We are ramping up three new offices to accommodate new demand and to mitigate slower growth in Ukraine during the invasion. Once the new
Slide 10: A new growth engine with increasing recurring revenue
Q4 REPORT 2022 ITERA | 11 A new growth engine with increasing recurring revenue Cloud Application Services is our economic investment the next 3-12 months, but showing promising progress, fueling our growth rate in the quarter. The cost of having excess capacity in order to be ready for large and mu
Slide 11: Building the digital core for innovation and growth for TESS
Q4 REPORT 2022 ITERA | 12 Building the digital core for innovation and growth for TESS TESS is embarking on a significant digital and cloud transformation with the ambitious goal of doubling its revenue and earnings within three years. Itera Cloud and Application Services has assisted TESS in migrat
Slide 12: Digital technology is the key driver for business growth
Q4 REPORT 2022 ITERA | 08 Digital technology is the key driver for business growth CEOs expect that digital technology will accelerate growth beyond what was previously possible with people and machines. 59% Share of digital initiatives Speed to complete initiatives is behind expectations However, m
Slide 13: Digital Factory at Scale: Doing more for less
Q4 REPORT 2022 ITERA | 13 Digital Factory at Scale: Doing more for less 20-30% Typically, the speed and throughput are increased CUSTOMER BUSINESS & DIGITAL STRATEGY by 20-30% or more ANALYTICS & DIGITAL DIGITAL Innovation Faster business innovation PRODUCT 1 PRODUCT n DATAOPS WORKLOADS through auto
Slide 14: Digital Factory: How to scale digital transformation 8X
Q4 REPORT 2022 ITERA | 14 Digital Factory: How to scale digital transformation According to McKinsey, companies using a Digital Factory model have been able to: • bring products to market faster (in six months 50% 70% reduction in reduction in the number versus two years) management overhead of busi
Slide 15: Itera in Energy – Powering a sustainable future
Q4 REPORT 2022 ITERA | 15 Itera in Energy – Powering a sustainable future 2022 has truly been the year in which Itera has made a mark in the energy sector, with both several new customers, such as Å Energi, its subsidiary Entelios, Hafslund ECO and Laki Power, and strong growth at existing customers
Slide 16: A cloud-based call centre for Opplysningen 1881
Q4 REPORT 2022 ITERA | 16 A cloud-based call centre for Opplysningen 1881 Itera was engaged by Opplysningen 1881 to provide functionality for a new, cloud-based call centre. A team from Itera has delivered new functionality for searches (widgets) for the call centre system used by customer service a
Slide 17: Norway is handing over ten temporary bridges to Ukraine
Q4 REPORT 2022 ITERA | 17 Norway is handing over ten temporary bridges to Ukraine As a company, we are deeply engaged Meeting between Ministry of Infrastructure of Ukraine, Itera, NUCC and the Norwegian in supporting Ukraine from all locations. Embassy in Kyiv on 30th June 2022 Ukraine defends not o
Slide 18: New director for Itera Central and Eastern Europe
Q4 REPORT 2022 ITERA | 18 New director for Itera Central and Eastern Europe As part of Itera’s ambitious growth journey, we have hired Taras Tovstiak as our new Director of Central and Eastern Europe. He will lead Itera’s operations in Ukraine, Slovakia, The Czech Republic, and Poland, and continue
Slide 19: Top 6% most sustainable in our industry
Q4 REPORT 2022 ITERA | 19 Top 6% most sustainable in our industry Itera scored in the top 6% in its industry in the sustainability ranking by Ecovadis, the world's largest and most trusted rating company within sustainability. In Q4 2022, we went up 10% from 60 to 66/100 points, which gives us a new
Slide 20: BITS – a new YouTube series from Itera
Q4 REPORT 2022 ITERA | 20 BITS – a new YouTube series from Itera This fall, we launched our very own series, "BITS from Itera", which you can watch exclusively on our YouTube channel. In this series, you meet the people who are digitising Norway and get an insight into the technology industry, how w
Slide 21: People behind the scenes that are digitising Gjensidige
Q4 REPORT 2022 ITERA | 21 People behind the scenes that are digitising Gjensidige
Slide 22: Order intake
Q4 REPORT 2022 ITERA | 22 Order intake Order intake from selected new and existing customers Book-to-bill ratio*) of 1.5 in Q4 and 1.2 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 23: Customer development
Q4 REPORT 2022 ITERA | 23 Customer development Revenue customers split (in MNOK) New business 100% 12 16 15 ▪ Existing customers accounted for 88.2% (85.9%) 18 23 21 22 19 24 80% of revenues in Q4 2022 60% ▪ New customers won over the past year generated 40% 124 126 127 118 136 160 164 156 181 reven
Slide 24: Skilled and innovative employees
Q4 REPORT 2022 ITERA | 24 Skilled and innovative employees 698 employees at the end of the quarter Number of employees end of quarter by shore 800 55% ▪ Up by 81 (113) last twelve months, 700 53% 600 temporarily impacted by the invasion in 500 51% 400 49% Ukraine 300 47% 200 ▪ More than 50% of the F
Slide 25: Financial review
Q4 REPORT 2022 ITERA | 25 03 Financial review
Slide 26: Key financials
Q4 REPORT 2022 ITERA | 26 Key financials 2022 2021 Change 2022 2021 Change ▪ Growth of 29% with strong traction NOK Million 10-12 10-12 % 1-12 1-12 % from new customers and cloud Operating revenue 205.5 158.7 29% 735.8 593.0 24% services Gross profit 191.9 147.3 30% 684.2 547.3 25% ▪ Personnel expen
Slide 27: Revenue and earnings development
Q4 REPORT 2022 ITERA | 27 Revenue and earnings development EBIT MNOK margin 250 20% ▪ Strong sales growth year over year with 2-year CAGR of 21.6% and an average of 11.6% EBIT margin 200 15% ▪ Quarterly figures are impacted by number of working days net of 150 vacations. Q4 2022 had 64 (64) working
Slide 28: EBIT margin development
ITERA IT | 28 EBIT margin development EBIT margin development: ▪ Margin expansion existing business: +1.6% ▪ Direct costs from the invasion: -1.0% ▪ Investment in new offices in Central Europe: -0.6% ▪ Investment in capacity readiness for cloud expansion: -2.5%
Slide 29: Statement of cash flow
Q4 REPORT 2022 ITERA | 29 Statement of cash flow 2022 2021 2022 2021 12 month rolling cash flow NOK Million 10-12 10-12 1-12 1-12 from operations (NOK Million) EBITDA 28.2 24.4 109.0 101.6 99 Change in balance sheet items 13.2 8.5 (32.9) (31.9) Net cash flow from operating activities 41.4 32.8 76.0
Slide 30: Dividend and own shares
Q4 REPORT 2022 ITERA | 30 Dividend and own shares ▪ The board has resolved to propose and ordinary dividend of NOK 0.30 1.20 per share for 2022 1.00 0.80 Share price was NOK 13.45 at the NOK per share ▪ 0.60 end of December 2022, a change of 0.40 -8% incl. dividends from NOK 15.20 0.20 at the end of
Slide 31: Statement of financial position
Q4 REPORT 2022 ITERA | 31 Statement of financial position ▪ Equity ratio of 21% (18%) Assets Equity and Liabilities per 31 December 2022 250 ▪ 24% (21%) excl. IFRS 16 Leasing Right-of-use 28 200 31 assets ▪ Cash balance of MNOK 42 Non-current 50 (MNOK 37) 150 55 assets 163 Current liabilities 159 MN
Slide 32: Outlook
Q4 REPORT 2022 ITERA | 32 04 Outlook
Slide 33: Outlook
Q4 REPORT 2022 ITERA | 33 Outlook Regional expansion Continued high Readiness to migrate Connecting Ukraine Profitable growth continues in the growth through and operate larger and Norway to and cash flow are Nordics and Central existing and new scale cloud enable the green key focus areas. Europe f
Slide 34: Q&A
Q4 REPORT 2022 ITERA | 34 05 Q&A
Slide 35: Slide 35
Slide 36: Top 20 shareholders
Q4 REPORT 2022 ITERA | 36 Top 20 shareholders No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS 31.35 NOR 25,763,031 2 OP CAPITAL AS 5.60 NOR 4,605,242 3 GIP AS 5.12 NOR 4,210,000 4 SEPTIM CONSULTING AS 3.89 NOR 3,200,000 5 EIKESTAD AS 3.65 NOR 3,000,000 6 BOINVESTERING AS 3.47 NOR 2,849,362 7 GAMS