Slide 1: Q3 2024 Presentation
Q3 2024 Presentation October 23, 2024
Slide 2: Highlights – Q3 2024
Highlights – Q3 2024 Revenue of NOK 8.0 billion EBIT EBIT of NOK 307 million Up 3.1% from last year Up 3.0% from last year Net profit of NOK 192 million Operating cash flow of NOK 112 million Up 5.7% from last year Up NOK 413 million y-o-y
Slide 3: Income statement – Q3 2024
Income statement – Q3 2024 • Return to sales and profit growth, with new customer agreements and improving market conditions CURRENCY: MNOK Q3 2024 Q3 2023 Growth Gross Sales* 11,265 10,685 5.4% Hardware 5,556 5,377 3.3% Software 295 262 12.3% Services 2,132 2,104 1.4% Revenue 7,983 7,743 3.1% Gross
Slide 4: Business unit performance – Q3 2024
Business unit performance – Q3 2024 • Solid EBIT performance in Atea Norway and Baltics • Development in Atea Sweden and Denmark improves from prior quarter • Atea Finland has won a major frame agreement (Tiera) in Q3 2024. Expects return to growth in coming quarters, despite a challenging macroecon
Slide 5: Cash flow from operations – Q3 2024
Cash flow from operations – Q3 2024 • Cash flow from operations of NOK 112 million in Q3 2024, an increase of NOK 413 million from Q3 last year 2,000 1,500 1,000 NOK in million 2020 500 2021 2022 0 2023 2024 -500 -1,000 -1,500 Q1 Q2 Q3 Q4
Slide 6: Net financial position
CURRENCY: MNOK 30 Sep 2024 30 Sep 2023 Interest-bearing liabilities -1,143 -1,190 Net Cash and cash equivalents 1,034 1,019 financial Net financial position* -108 -171 position EBITDA - rolling 4 Q* 1,929 1,962 Net debt of Net debt / EBITDA, end of quarter (ratio) 0.1 0.1 NOK 108 million Loan covena
Slide 7: Initiation of share buyback
⚫ The Board has resolved to initiate a share repurchase program, in accordance with the mandate granted at the last AGM Initiation of ⚫ The share repurchase program will be for a maximum of 650,000 shares and for a maximum consideration of NOK share 120 million buyback ⚫ The program will commence on
Slide 8: Revenue growth (2022 – 2024, by quarter)
Revenue growth (2022 – 2024, by quarter) • Atea returns to revenue growth following a period of unusual cyclicality following the COVID pandemic 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 e
Slide 9: Hardware – Revenue growth by product category (Q3 2024)
Hardware – Revenue growth by product category (Q3 2024) • Solid growth in sales of PCs and Servers/Storage • Sales of networking and AV equipment decline against strong comparable period last year. Expect return to growth in coming quarters 15.0% 10.0% 5.0% Networking + Audio/Video 0.0% PC Servers/S
Slide 10: Software – Revenue growth (2022 – 2024, by quarter)
Software – Revenue growth (2022 – 2024, by quarter) • Software shows continued strong growth • Higher sales of productivity and cloud solutions offsets lower sales of networking software in 2024 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24
Slide 11: Services – Revenue growth (2022 – 2024, by quarter)
Services – Revenue growth (2022 – 2024, by quarter) • Many of Atea’s services follow a product delivery • Services revenue growth tends to lag product revenue growth by approx. 1 quarter 40.0% 30.0% 20.0% 10.0% 0.0% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 -10.0% -20.0% -30.
Slide 12: Headcount – full time equivalents (2022 – 2024, quarter end)
Headcount – full time equivalents (2022 – 2024, quarter end) • Atea has reduced staffing throughout 2024 and was 105 FTEs below last year at end-Q3 2024 • Further reductions are planned in Q4 2024, with a restructuring charge of approx. MNOK 40 8,300 8,200 8,100 8,000 7,900 7,800 7,700 7,600 7,500 7
Slide 13: Summary – YTD 2024
Summary – YTD 2024 Gross sales of NOK 37.3 billion Gross profit of NOK 7.6 billion In line with last year Up 1.5% from last year EBIT EBIT of NOK 806 million Net debt of NOK 108 million Down NOK 34 million y-o-y Net debt / EBITDA ratio of 0.1
Slide 14: We build the future with IT.
We build the future with IT.
Slide 15: Q3 2024 Presentation – Fact pack
Q3 2024 Presentation Fact pack October 23, 2024
Slide 16: Highlights – Group
Highlights – Group Q3 Q3 YTD YTD Full year NOK in million 2024 2023 2024 2023 2023 Gross sales 11,265 10,685 37,323 37,543 51,938 Revenue 7,983 7,743 23,968 25,305 34,704 Gross profit 2,357 2,282 7,554 7,446 10,249 EBIT 307 298 806 840 1,244 EBIT margin (%) 3.8% 3.9% 3.4% 3.3% 3.6% Net profit 192 18
Slide 17: Consolidated statement of financial position – Group
Consolidated statement of financial position – Group NOK in million 30 Sep 2024 30 Sep 2023 31 Dec 2023 ASSETS Property, plant and equipment 501 511 514 Right-of-use assets 1,419 1,313 1,314 Deferred tax assets 198 186 209 Goodwill 4,469 4,307 4,336 Other intangible assets 661 541 572 Other long-ter
Slide 18: Full-time employees – Group
Full-time employees – Group FTEs, end of period 30 Sep 2024 30 Sep 2023 Norway 1,774 1,770 Sweden 2,650 2,718 Denmark 1,437 1,469 Finland 548 548 Baltics 743 729 Logistics 267 284 Atea Global Services 523 532 Atea ASA 10 10 AppXite 54 52 Atea Group 8,006 8,111
Slide 19: Financial performance actual – Segment
Financial performance actual – Segment NOK in million Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Norway 1,874.7 2,035.0 2,081.9 2,296.6 1,900.1 2,114.2 1,968.0 Sweden 3,171.3 3,536.1 2,739.5 3,397.8 2,909.4 3,100.2 3,033.4 Denmark 2,310.0 1,920.1 1,651.0 2,224.2 1,615.9 1,813.9 1,716.5 Finland 971.9
Slide 20: 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 Q3 24 Norway 1,874.7 2,035.0 2,081.9 2,296.6 1,900.1 2,114.2 1,968.0 Sweden 3,171.3 3,536.1 2,739.5 3,397.8 2,909.4 3,100.2 3,033.4 Denmark 2,310.0 1,920.1 1,651.0 2,224.2 1,615.9 1,813.9 1,716.5 Finland 971
Slide 21: 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 Q3 24 Hardware 6,146.4 6,139.5 5,377.2 6,466.9 4,950.1 5,627.0 5,555.9 Software 3,717.4 5,956.8 3,072.8 5,144.4 4,010.4 6,416.5 3,413.6 Product sales 9,863.9 12,096.3 8,450.0 11,611.3 8,960.5 12,043.5 8,
Slide 22: 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 Q3 24 Hardware 6,146.4 6,139.5 5,377.2 6,466.9 4,950.1 5,627.0 5,555.9 Software 3,717.4 5,956.8 3,072.8 5,144.4 4,010.4 6,416.5 3,413.6 Product sales 9,863.9 12,096.3 8,450.0 11,611.3 8,960.5 12,043.5
Slide 23: 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 Q3 24 Product sales 2,083.6 2,338.7 2,308.8 2,958.2 2,176.0 2,504.0 2,188.9 Services sales 610.8 635.7 557.5 668.4 616.8 682.6 591.1 Gross sales 2,694.4 2,974.3 2,866.4 3,626.6 2,792.7 3,186.6 2,780.0 P
Slide 24: 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 Q3 24 Product sales 4,022.0 5,278.5 3,207.4 4,635.0 3,912.0 5,071.1 3,446.0 Services sales 897.9 984.4 824.3 1,071.3 903.6 960.8 787.3 Gross sales 4,919.8 6,262.9 4,031.8 5,706.3 4,815.6 6,031.9 4,233.3
Slide 25: 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 Q3 24 Product sales 3,944.3 5,347.8 3,080.7 4,701.5 3,956.8 5,079.3 3,542.5 Services sales 880.6 1,000.0 796.8 1,085.4 915.2 963.1 810.0 Gross sales 4,824.9 6,347.8 3,877.5 5,786.9 4,872.0 6,042.4 4,352
Slide 26: 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 Q3 24 Product sales 1,651.6 1,899.7 1,076.9 1,559.9 1,090.9 1,929.8 1,173.7 Services sales 395.9 399.6 395.7 453.7 408.6 450.7 381.8 Gross sales 2,047.4 2,299.4 1,472.6 2,013.6 1,499.4 2,380.5 1,555.5
Slide 27: 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 Q3 24 Product sales 2,437.4 2,961.3 1,652.3 2,436.5 1,668.9 2,999.5 1,850.5 Services sales 584.2 625.1 605.5 707.2 625.7 698.2 602.1 Gross sales 3,021.6 3,586.4 2,257.8 3,143.7 2,294.6 3,697.7 2,452.6
Slide 28: 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 Q3 24 Product sales 98.8 101.0 93.9 89.6 78.9 99.7 92.2 Services sales 12.3 12.9 12.0 15.0 13.5 14.2 13.7 Gross sales 111.1 113.9 105.9 104.6 92.5 113.8 105.9 Product margin (%) 9.6% 11.1% 9.9% 10.9% 1
Slide 29: 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 Q3 24 Product sales 1,084.9 1,176.8 1,071.4 1,046.0 902.1 1,151.0 1,083.5 Services sales 135.3 150.4 137.2 174.4 154.6 163.8 161.7 Gross sales 1,220.3 1,327.2 1,208.6 1,220.4 1,056.7 1,314.8 1,245.3 Pr
Slide 30: 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 Q3 24 Product sales 31.7 22.7 28.5 36.7 25.5 28.9 28.3 Services sales 13.4 14.4 13.8 16.3 13.9 13.8 13.9 Gross sales 45.1 37.0 42.3 53.0 39.3 42.7 42.1 Product margin (%) 10.7% 14.1% 12.0% 13.7% 11.2% 1
Slide 31: 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 Q3 24 Product sales 348.5 267.1 325.0 425.6 290.6 332.6 332.7 Services sales 147.3 167.3 156.8 189.5 158.4 159.9 163.3 Gross sales 495.8 434.4 481.8 615.1 449.0 492.5 496.1 Product margin (%) 10.7% 14.0
Slide 32: 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 Q3 24 Product sales 1,867.0 1,899.4 1,894.0 2,216.3 1,640.4 1,985.9 2,237.9 Services sales 238.3 265.1 265.5 282.3 296.2 307.8 339.9 Gross sales 2,105.3 2,164.6 2,159.6 2,498.7 1,936.6 2,293.6