Atea Asa · OSL:ATEA
Atea Asa — Q2 2024 Earnings Presentation
29 slides from Atea Asa's earnings presentation, Jul 12, 2024
Slide 1: Q2 2024 Presentation
Q2 2024 Presentation July 12, 2024
Slide 2: Highlights – Q2 2024
Highlights – Q2 2024 Gross sales of NOK 14.7 billion Gross profit of NOK 2.6 billion In line with last year In line with last year EBIT EBIT of NOK 243 million Operating cash flow of NOK 665 million Down from NOK 291 million last year Up NOK 326 million y-o-y
Slide 3: Revenue growth (2022 – 2024, by quarter)
Revenue growth (2022 – 2024, by quarter) 30.0 % Key trends 25.0 % Q3 2022 – Q2 2023: 20.0 % • Exceptionally high revenue growth in “post-pandemic” period, with return to the 15.0 % workplace and easing of supply constraints 10.0 % Q3 2023 – Q2 2024: 5.0 % • Negative growth rates from prior year as s
Slide 4: Revenue breakdown – Q2 2024
Revenue breakdown – Q2 2024 • Hardware revenue falls from last year, due to lower shipments of networking equipment • Software revenue grows rapidly, driving increased gross margin Growth Growth 2 yr. CURRENCY: MNOK Q2 2022 Q2 2023 Q2 2024 2022-23 2023-24 CAGR Gross Sales 12,180 14,657 14,659 20.3%
Slide 5: Business unit performance – Q2 2024
Business unit performance – Q2 2024 • Solid financial performance in Norway and Baltics • Business in Sweden and Denmark is most affected by lower networking shipments during Q2 Revenue EBIT Currency: Local in million Q2 2024 Q2 2023 Growth% Q2 2024 Q2 2023 Growth% Norway, NOK 2,114 2,035 3.9 % 97 8
Slide 6: Cash flow from operations
CURRENCY: MNOK Q2 2024 Q2 2023 Cash Cash earnings 322 406 flow from Changes in working capital operations (excluding sale of receivables) 327 -43 Cash flow from operations, before sale Cash flow from operations of 650 363 of receivables NOK 665 million in Q2 2024 Change in sale of receivables 16 -23
Slide 7: Net financial position
CURRENCY: MNOK 30-Jun 2024 30-Jun 2023 Interest-bearing liabilities -1,274 -1,208 Net Cash and cash equivalents 1,190 1,161 financial Net financial position* -84 -46 position EBITDA - rolling 4 Q* 1,906 1,933 Net debt / EBITDA, end of quarter (ratio) 0.0 0.0 Net debt of Loan covenant: NOK 84 million
Slide 8: Business outlook – key growth areas
Business outlook – key growth areas Defense IT security • Atea is a key supplier for defense in all countries • Cybersecurity is now more critical than ever • Defense spending will increase significantly • One driver for IT security investments is the • NATO membership is a driving force EU Network
Slide 9: Business outlook by country
Business outlook by country • Great quarter with solid growth in all areas, will continue Norway • Consulting business remains flat • Slower market pickup than anticipated Sweden • Backlog increased through Q2 with 350 million • Starting to see revenue from new SKI contracts • Lorem ipsum Denmark •
Slide 10: Summary – H1 2024
Summary – H1 2024 Revenue of NOK 16.0 billion Gross profit of NOK 5.2 billion Down 9.0% y-o-y Up 0.7% y-o-y EBIT EBIT of NOK 499 million Net profit of NOK 330 million Down from NOK 541 million last year Down from NOK 369 million last year
Slide 11: We build the future with IT.
We build the future with IT.
Slide 12: Q2 2024 Presentation – Fact pack
Q2 2024 Presentation Fact pack July 12, 2024
Slide 13: Highlights – Group
Highlights – Group Q2 Q2 H1 H1 Full year NOK in million 2024 2023 2024 2023 2023 Gross sales 14,659 14,657 26,058 26,858 51,938 Revenue 8,380 8,870 15,986 17,561 34,704 Gross profit 2,642 2,656 5,197 5,163 10,249 EBIT 243 291 499 541 1,244 EBIT margin (%) 2.9% 3.3% 3.1% 3.1% 3.6% Net profit 139 194
Slide 14: Consolidated statement of financial position – Group
Consolidated statement of financial position – Group NOK in million 30 Jun 2024 30 Jun 2023 31 Dec 2023 ASSETS Property, plant and equipment 503 549 514 Right-of-use assets 1,407 1,269 1,314 Deferred tax assets 239 201 209 Goodwill 4,360 4,417 4,336 Other intangible assets 617 538 572 Other long-ter
Slide 15: Full-time employees – Group
Full-time employees – Group FTEs, end of period 30 Jun 2024 30 Jun 2023 Norway 1,754 1,777 Sweden 2,690 2,781 Denmark 1,482 1,485 Finland 556 539 Baltics 748 718 Logistics 283 284 Atea Global Services 520 522 Atea ASA 10 9 AppXite 56 53 Atea Group 8,098 8,169
Slide 16: Financial performance actual – Segment
Financial performance actual – Segment NOK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Norway 1,874.7 2,035.0 2,081.9 2,296.6 1,900.1 2,114.2 Sweden 3,171.3 3,536.1 2,739.5 3,397.8 2,909.4 3,100.2 Denmark 2,310.0 1,920.1 1,651.0 2,224.2 1,615.9 1,813.9 Finland 971.9 1,018.6 852.0 945.8 857.9 980.
Slide 17: Financial performance pro forma – Segment
Financial performance pro forma – Segment NOK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Norway 1,874.7 2,035.0 2,081.9 2,296.6 1,900.1 2,114.2 Sweden 3,171.3 3,536.1 2,739.5 3,397.8 2,909.4 3,100.2 Denmark 2,310.0 1,920.1 1,651.0 2,224.2 1,615.9 1,813.9 Finland 971.9 1,018.6 852.0 945.8 857.9 9
Slide 18: Income statement actual – Group (NOK million)
Income statement actual – Group (NOK million) NOK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Hardware 6,146.4 6,139.5 5,377.2 6,466.9 4,950.1 5,627.0 Software 3,717.4 5,956.8 3,072.8 5,144.4 4,010.4 6,416.5 Product sales 9,863.9 12,096.3 8,450.0 11,611.3 8,960.5 12,043.5 Services sales 2,336.9 2
Slide 19: Income statement pro forma – Group (NOK million)
Income statement pro forma – Group (NOK million) NOK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Hardware 6,146.4 6,139.5 5,377.2 6,466.9 4,950.1 5,627.0 Software 3,717.4 5,956.8 3,072.8 5,144.4 4,010.4 6,416.5 Product sales 9,863.9 12,096.3 8,450.0 11,611.3 8,960.5 12,043.5 Services sales 2,336.
Slide 20: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) NOK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Product sales 2,083.6 2,338.7 2,308.8 2,958.2 2,176.0 2,504.0 Services sales 610.8 635.7 557.5 668.4 616.8 682.6 Gross sales 2,694.4 2,974.3 2,866.4 3,626.6 2,792.7 3,186.6 Product margin (%) 11.3% 10.9
Slide 21: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) SEK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Product sales 4,022.0 5,278.5 3,207.4 4,635.0 3,912.0 5,071.1 Services sales 897.9 984.4 824.3 1,071.3 903.6 960.8 Gross sales 4,919.8 6,262.9 4,031.8 5,706.3 4,815.6 6,031.9 Product margin (%) 10.6% 8.
Slide 22: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) NOK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Product sales 3,944.3 5,347.8 3,080.7 4,701.5 3,956.8 5,079.3 Services sales 880.6 1,000.0 796.8 1,085.4 915.2 963.1 Gross sales 4,824.9 6,347.8 3,877.5 5,786.9 4,872.0 6,042.4 Product margin (%) 10.6%
Slide 23: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) DKK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Product sales 1,651.6 1,899.7 1,076.9 1,559.9 1,090.9 1,929.8 Services sales 395.9 399.6 395.7 453.7 408.6 450.7 Gross sales 2,047.4 2,299.4 1,472.6 2,013.6 1,499.4 2,380.5 Product margin (%) 9.2% 7.0%
Slide 24: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) NOK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Product sales 2,437.4 2,961.3 1,652.3 2,436.5 1,668.9 2,999.5 Services sales 584.2 625.1 605.5 707.2 625.7 698.2 Gross sales 3,021.6 3,586.4 2,257.8 3,143.7 2,294.6 3,697.7 Product margin (%) 9.2% 7.0%
Slide 25: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) EUR in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Product sales 98.8 101.0 93.9 89.6 78.9 99.7 Services sales 12.3 12.9 12.0 15.0 13.5 14.2 Gross sales 111.1 113.9 105.9 104.6 92.5 113.8 Product margin (%) 9.6% 11.1% 9.9% 10.9% 11.8% 9.2% Services mar
Slide 26: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) NOK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Product sales 1,084.9 1,176.8 1,071.4 1,046.0 902.1 1,151.0 Services sales 135.3 150.4 137.2 174.4 154.6 163.8 Gross sales 1,220.3 1,327.2 1,208.6 1,220.4 1,056.7 1,314.8 Product margin (%) 9.6% 11.0%
Slide 27: Income statement actual – Baltic (EUR million)
Income statement actual – Baltic (EUR million) EUR in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Product sales 31.7 22.7 28.5 36.7 25.5 28.9 Services sales 13.4 14.4 13.8 16.3 13.9 13.8 Gross sales 45.1 37.0 42.3 53.0 39.3 42.7 Product margin (%) 10.7% 14.1% 12.0% 13.7% 11.2% 13.2% Services margin
Slide 28: Income statement actual – Baltic (NOK million)
Income statement actual – Baltic (NOK million) NOK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Product sales 348.5 267.1 325.0 425.6 290.6 332.6 Services sales 147.3 167.3 156.8 189.5 158.4 159.9 Gross sales 495.8 434.4 481.8 615.1 449.0 492.5 Product margin (%) 10.7% 14.0% 12.0% 13.7% 11.2% 13.2
Slide 29: Income statement actual – Group Shared Services (MNOK)
Income statement actual – Group Shared Services* (MNOK) NOK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Product sales 1,867.0 1,899.4 1,894.0 2,216.3 1,640.4 1,985.9 Services sales 238.3 265.1 265.5 282.3 296.2 307.8 Gross sales 2,105.3 2,164.6 2,159.6 2,498.7 1,936.6 2,293.6 Product margin (%) 2