Slide 1: We stand with Ukraine
2023
Slide 2: Agenda
Q1 REPORT 2023 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 Q1 2023
Q1 REPORT 2023 ITERA | 03 01 Highlights Q1 2023
Slide 4: Q1 in brief
Q1 REPORT 2023 ITERA | 04 Q1 in brief 31% Attractive market for digital transformation, driven by the green Growth is fuelled by leveraging our investments in three Itera's AI team has conceptualized its own Itera-GPT to be used Our operation in Ukraine is running as normal, with increasing energy s
Slide 5: Key figures
Q1 REPORT 2023 ITERA | 05 Key figures Q1 Q1 Q1 31% 14% 14.4% Organic revenue Growth in number Operating margin growth of employees Revenues Employees EBIT margin NOK million 2021 2022 2023 End of period 2021 2022 2023 % 2021 2022 2023 250 230 800 731 18% 700 16% 14.4 % 200 14% 600 12% 150 500 10% 40
Slide 6: Business review
Q1 REPORT 2023 ITERA | 06 02 Business review
Slide 7: We are specialists in sustainable digital transformation
Q1 REPORT 2023 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
Slide 8: Our steady growth organic model
Q1 REPORT 2023 ITERA | 08 Our steady growth organic model We have built a strong international ONE Packaged offerings and Speed, reusability industrialised services and subscription Itera operating model and will see more Customer-centric of divergence in the linearity between and selected headcount
Slide 9: Our long-term ambition: annual net growth of 200-350 FTEs
Q1 REPORT 2023 ITERA | 09 Our long-term ambition: annual net growth of 200-350 FTEs Itera is investing to capture the significant growth opportunities ahead. ▪ We are ramping up three new offices in Central Europe to accommodate new demand and to mitigate slower growth in Ukraine during the invasion
Slide 10: Building the digital core for innovation and growth for TESS
Q1 REPORT 2023 ITERA | 10 Building the digital core for innovation and growth for TESS Our cloud growth is driven by both migration and customers who are moving forward on this journey, such as TESS that was successfully migrated to Azure cloud in Q1 2023. ▪ Using cloud as their operating systems is
Slide 11: Projects at IMDi – powered by Digital Factory at Scale
Q1 REPORT 2023 ITERA | 11 Projects at IMDi – powered by Digital Factory at Scale A multi-disciplined team from Itera, using the Digital Factory at Scale, has successfully launched the “Jobbsjanse-register” for IMDi. ▪ In Q1 2023, the two first Norwegian municipalities have started testing the soluti
Slide 12: Digital Factory at Scale: Doing more with less
Q1 REPORT 2023 ITERA | 12 Digital Factory at Scale: Doing more with 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 aut
Slide 13: Artificial Intelligence (AI) is the heart of digital transformation
Q1 REPORT 2023 ITERA | 13 Artificial Intelligence (AI) is the heart of digital transformation Our Digital Factory at Scale is already using AI and Machine Learning AI adoption continues of enterprises report that they consider (ML) to do more with less. to accelerate 95% AI technology to be importan
Slide 14: The future of work with AI
Q1 REPORT 2023 ITERA | 14 The future of work with AI Generative AI and tools will be game changing for our business and industry. ▪ We recognise that businesses are increasingly turning to these tools to enhance efficiency and reduce operational costs. ▪ As a technology company, we are committed to
Slide 15: Conceptualising our IteraGPT
Q1 REPORT 2023 ITERA | 15 Conceptualising our IteraGPT Itera has established a cross-functional AI discovery team with participants from different countries and competences. ▪ They aim to explore and experiment with ChatGPT and other AI tools, building insights and experiences that can benefit our c
Slide 16: Finance Trend Report
Q1 REPORT 2023 ITERA | 16 Finance Trend Report In Q1, Itera and its subsidiary Cicero Consulting, published the trend report "Five trends that shape the future of finance". ▪ In addition to this, we arranged a breakfast seminar and industry meeting in Oslo. Topics for discussion were what is affecti
Slide 17: The importance of keeping the economy running in Ukraine
Q1 REPORT 2023 ITERA | 17 ITERA The importance of keeping the economy running in Ukraine
Slide 18: Ukraine will become a significant energy exporter to Europe
Q1 REPORT 202 ITERA | 18 Ukraine will become a significant energy exporter to Europe Ukraine can in the future become a significant energy exporter to Europe, building on its energy competence, large renewable resource base and strategic location. 300 GW According to Rystad Energy estimates, Ukraine
Slide 19: The twin transition – energy and digital
Q1 REPORT 2023 ITERA | 19 The twin transition – energy and digital Itera’s presence in Ukraine is a strategic and long-term choice, as is the social responsibility and commitment to Ukraine. ▪ Simultaneously, the twin transition – green and digital – will reinforce sustainability with technology and
Slide 20: Order intake
Q1 REPORT 2023 ITERA | 20 Order intake Order intake from selected new and existing customers. Book-to-bill ratio*) of 1.3 in Q1 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 21: Customer development
Q1 REPORT 2023 ITERA | 21 Customer development Revenue customers split (in MNOK) New business 100% 16 15 18 23 21 22 19 24 30 90% ▪ Existing customers accounted for 87.0% (91.0%) 80% of revenues in Q1 2023 70% 60% ▪ New customers won over the past year generated 50% 40% 126 127 118 136 160 164 156 1
Slide 22: Skilled and innovative employees
Q1 REPORT 2023 ITERA | 22 Skilled and innovative employees 731 employees at the end of the quarter Number of employees end of quarter by shore 800 55% ▪ Up by 89 (118) last twelve months, 700 53% 600 temporarily impacted by the invasion 500 51% 400 49% in Ukraine 300 47% 200 ▪ More than 50% of the F
Slide 23: Financial review
Q1 REPORT 2023 ITERA | 23 03 Financial review
Slide 24: Key financials
Q1 REPORT 2023 ITERA | 24 Key financials 2023 2022 Change 2022 ▪ Growth of 31% with strong traction from new customers and cloud services NOK Million 1-3 1-3 % FY Operating revenue 230.3 176.0 31% 735.8 ▪ Personnel expenses driven by FTE growth, Gross profit 217.1 162.0 34% 684.2 FX depreciation and
Slide 25: Revenue and earnings development
Q1 REPORT 2023 ITERA | 25 Revenue and earnings development EBIT MNOK margin 250 20% ▪ Strong sales growth year over year with 2-year CAGR of 24.3% and an average of 11.7% EBIT margin 200 15% ▪ Quarterly figures are impacted by number of working days net of 150 vacations. Q1 2023 had 65 (64) 10% work
Slide 26: EBIT margin development
Q1 REPORT 2023 ITERA | 26 EBIT margin development EBIT margin development: ▪ Margin expansion regular business: +0.5% ▪ Direct costs from the invasion: -0.3% ▪ Investment in new offices: -0.4% ▪ Investment in capacity readiness for cloud expansion: -0.2%
Slide 27: Statement of cash flow
Q1 REPORT 2023 ITERA | 27 Statement of cash flow 2023 2022 2022 12 month rolling cash flow NOK Million 1-3 1-3 FY from operations (NOK Million) 92 EBITDA 40.8 33.3 109.0 Change in balance sheet items (32.9) (33.7) (32.9) 84 Net cash flow from operating activities 7.9 (0.4) 76.0 Net cash flow from in
Slide 28: Dividend and own shares
Q1 REPORT 2023 ITERA | 28 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 12.60 at the NOK per share ▪ 0.60 end of March 2023, a change of +9% 0.40 incl. dividends from NOK 12.00 at 0.20 the end of Ma
Slide 29: Statement of financial position
Q1 REPORT 2023 ITERA | 29 Statement of financial position ▪ Equity ratio of 29% (22%) Assets Equity and Liabilities per 31 March 2023 300 ▪ 32% (25%) excl. IFRS 16 Leasing Right-of-use 25 250 assets ▪ Receivables include MNOK 27 Non-current 50 6 from employees from 200 assets 183 Current Share Purch
Slide 30: Outlook
Q1 REPORT 2023 ITERA | 30 04 Outlook
Slide 31: Outlook
Q1 REPORT 2023 ITERA | 31 Outlook Regional expansion Continued high Readiness to migrate Connecting Ukraine Profitable growth continues in the growth for digital and operate larger and the Nordics to and cash flow are Nordics and Central transformation scale cloud enable the green key focus areas. E
Slide 32: Q&A
Q1 REPORT 2023 ITERA | 32 05 Q&A
Slide 33: Slide 33
Slide 34: Top 20 shareholders
Q1 REPORT 2023 ITERA | 36 Top 20 shareholders No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS 31.35 Norway 25,763,031 2 OP CAPITAL AS 5.60 Norway 4,605,242 3 GIP AS 5.14 Norway 4,224,000 4 SEPTIM CONSULTING AS 3.91 Norway 3,212,685 5 BOINVESTERING AS 3.47 Norway 2,849,362 6 EIKESTAD AS 3.22 Norwa