Atea Asa · OSL:ATEA
Atea Asa — Q1 2019 Earnings Presentation
35 slides from Atea Asa's earnings presentation, Apr 30, 2019
Slide 1: Q1 2019 Presentation
Q1 2019 PRESENTATION 30 April 2019
Slide 2: Highlights - Q1 2019
Highlights - Q1 2019 Exceptionally high revenue growth across all markets, except Denmark Recruitment within services business drives increased operating expenses Revenue of NOK 9.1 billion (NOK 8.3 billion in Q1 2018) ‒ Revenue growth of 9.6% ‒ Strong in both products (+9.6%) and services (+9.4%) ‒
Slide 3: Norway
Norway Exceptional revenue growth was offset by lower products margin and higher operating costs to develop services business REVENUE EBIT +28.5% -9.7% Product revenue +33.7% 2,442 43 38 Service revenue +11.7% 1,901 NOK in million NOK in million Gross profit +8.0% Operating expenses +9.6% Q1 18 Q1 1
Slide 4: Sweden
Sweden Atea continues to capture market share and improve profitability. Strong growth within services business. REVENUE EBIT +11.5% +12.6% Product revenue +10.7% 3,825 112 3,430 99 Service revenue +15.8% SEK in million SEK in million Gross profit +9.0% Operating expenses +8.4% Q1 18 Q1 19 Q1 18 Q1
Slide 5: Denmark
Denmark EBIT falls from last year, but at a lower rate than in Q3 – Q4 2018, with stronger demand from the private sector. REVENUE EBIT -7.8% -12 MDKK Product revenue -10.6% 1,555 1,433 Q1 18 Q1 19 Service revenue +3.3% DKK in million DKK in million -8 Gross profit -4.5% Operating expenses -0.7% -20
Slide 6: Finland
Finland Rapid growth in sales was offset by additional personnel costs in services business. Services revenue expected to see significant growth during 2019. REVENUE EBIT +10.9% +3.3% Product revenue 12.6% 101 1.2 1.2 91 Service revenue -8.7% EUR in million EUR in million Gross profit +12.0% Operati
Slide 7: Baltics
Baltics EBIT growth driven by strong sales across all product lines, and lower operating expenses REVENUE EBIT +19.6% +0.8 MEUR Product revenue +21.8% 31 0.9 Service revenue +14.1% 26 EUR in million EUR in million Gross profit +11.4% 0.1 Operating expenses -0.9% Q1 18 Q1 19 Q1 18 Q1 19
Slide 8: Net debt
Net debt Net debt of NOK 620 million at end-Q1 2019 (Net Debt / EBITDA of 0.56*) Cash flow from operations of NOK -481 million during Q1 2019 1,926 1,595 Cash flow is highly concentrated in Q4 based on fluctuations in working capital NOK in million balance throughout year 868 Securitization program
Slide 9: Information Management, Digital Workplace, Hybrid Platforms
Information Management Digital Workplace Hybrid Platforms
Slide 10: Reseller, Integrator, Service Provider
#1 #1 #1 Reseller Integrator Service Provider Life Cycle Management Professional Services Managed Services
Slide 11: Atea's competitive advantages
Atea’s competitive advantages Strong competitive advantages in the Nordic and Baltic IT infrastructure markets through scale, breadth of competence, and presence in local markets. MARKET LEADERSHIP S Y S T E M I N T E G R AT I O N • Strategic partnership with top IT • Integration expert with key ven
Slide 12: Summary – Q1 2019
Summary – Q1 2019 Cash flow from operations of NOK -481 million REVENUE Revenue of NOK 9.1 billion, up 9.6% CASH FLOW (NOK - 842 million in Q1 2018) Net debt of NOK 620 million EBIT EBIT of NOK 116 million, down 5.5% NET DEBT (0.56 x EBITDA*) * Net debt and EBITDA as defined in Atea’s loan covenants
Slide 13: Q1 2019 Fact Pack
Q1 2019 FACT PACK
Slide 14: Highlights – Group
Highlights – Group Q1 Q1 Full year NOK in million 2019 2018 2018 Group revenue 9,139 8,340 34,709 Gross margin (%) 21.2% 22.0% 21.7% EBIT 116 123 690 EBIT margin (%) 1.3% 1.5% 2.0% Net profit 79 87 467 Earnings per share (NOK) 0.73 0.81 4.33 Diluted earnings per share (NOK) 0.72 0.80 4.26 Cash flow
Slide 15: Consolidated statement of financial position – Group (1)
Consolidated statement of financial position – Group (1) NOK in million 31 Mar 2019 31 Mar 2018 ASSETS Property, plant and equipment 530 495 Right-of-use assets 692 119 Deferred tax assets 407 482 Goodwill 3,811 3,755 Other intangible assets 230 254 Long-term subleasing receivables 191 0 Other long-
Slide 16: Consolidated statement of financial position – Group (2)
Consolidated statement of financial position – Group (2) Right-of-use assets NOK in million 31 Mar 2019 31 Mar 2018 ASSETS Right-of-use assets - Buildings and property 480 0 Right-of-use assets - Computer equipment 81 109 Right-of-use assets - Motor vehicles 130 9 Total right-of-use assets 692 119
Slide 17: Full-time employees - Group
Full-time employees - Group FTEs, end of period 31 Mar 2019 31 Mar 2018 31 Dec 2018 Norway 1,702 1,591 1,678 Sweden 2,495 2,319 2,497 Denmark 1,463 1,468 1,515 Finland 369 326 356 Baltics 656 675 665 Logistics 235 223 237 Atea Global Services 391 353 382 Atea ASA 12 10 10 AppXite 39 48 45 Atea Group
Slide 18: Financial performance actual – Segment
Financial performance actual – Segment NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Norway 1,901.4 2,004.4 2,143.7 2,687.7 2,442.4 Sweden 3,314.4 3,932.0 2,780.3 4,022.3 3,575.3 Denmark 2,011.3 2,306.3 1,318.9 2,389.6 1,870.9 Finland 873.9 637.9 644.1 733.4 980.5 The Baltics 252.2 256.1 252.6 389.9
Slide 19: Financial performance pro forma – Segment
Financial performance pro forma – Segment NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Norway 1,920.2 2,022.2 2,158.8 2,687.7 2,442.4 Sweden 3,314.4 3,932.0 2,780.3 4,022.3 3,575.3 Denmark 2,011.3 2,306.3 1,318.9 2,389.6 1,870.9 Finland 873.9 637.9 644.1 733.4 980.5 The Baltics 252.2 256.1 252.6 389
Slide 20: Income statement actual - Group (NOK million)
Income statement actual - Group (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 4,484.1 4,601.2 4,357.6 5,661.6 4,872.9 Software revenue 2,328.8 2,854.8 1,291.3 2,688.5 2,594.8 Products revenue 6,812.9 7,456.0 5,648.9 8,350.1 7,467.7 Total services revenue 1,527.0 1,642.4
Slide 21: Income statement pro forma - Group (NOK million)
Income statement pro forma - Group (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 4,490.5 4,604.3 4,360.3 5,665.2 4,872.9 Software revenue 2,328.8 2,854.8 1,291.3 2,688.5 2,594.8 Products revenue 6,819.3 7,459.2 5,651.6 8,353.7 7,467.7 Total services revenue 1,539.5 1,65
Slide 22: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 1,065.1 1,178.9 1,331.7 1,617.5 1,315.6 Software revenue 377.7 349.8 356.7 537.5 613.7 Products revenue 1,442.7 1,528.7 1,688.4 2,155.0 1,929.3 Total services revenue 458.6 475.7 455.3 532.7
Slide 23: Income statement pro forma – Norway (NOK million)
Income statement pro forma – Norway (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 1,065.1 1,178.9 1,331.7 1,617.5 1,315.6 Software revenue 377.7 349.8 356.7 537.5 613.7 Products revenue 1,442.7 1,528.7 1,688.4 2,155.0 1,929.3 Total services revenue 477.4 493.5 470.5 532
Slide 24: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) DKK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 835.7 806.0 572.8 959.3 804.5 Software revenue 405.0 612.5 150.9 500.5 304.1 Products revenue 1,240.7 1,418.5 723.6 1,459.8 1,108.6 Total services revenue 314.3 378.5 304.1 392.1 324.7 Other
Slide 25: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 1,080.9 1,033.6 735.3 1,237.8 1,050.1 Software revenue 523.9 786.8 193.0 645.8 397.0 Products revenue 1,604.9 1,820.4 928.4 1,883.6 1,447.1 Total services revenue 406.5 485.8 390.6 506.0 423
Slide 26: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) SEK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 1,836.3 2,021.7 1,941.4 2,235.2 2,014.3 Software revenue 1,028.8 1,588.2 552.5 1,371.2 1,156.0 Products revenue 2,865.1 3,609.8 2,493.9 3,606.3 3,170.3 Total services revenue 564.9 624.2 541.
Slide 27: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 1,774.4 1,873.3 1,786.9 2,088.2 1,883.0 Software revenue 994.1 1,480.2 495.8 1,281.3 1,080.6 Products revenue 2,768.5 3,353.5 2,282.7 3,369.4 2,963.6 Total services revenue 545.9 578.4 497.6
Slide 28: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) EUR in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 39.8 36.3 37.1 47.9 43.5 Software revenue 43.8 23.8 24.3 20.9 50.6 Products revenue 83.6 60.1 61.4 68.8 94.1 Total services revenue 7.2 6.8 5.8 7.3 6.5 Other income 0.0 0.0 0.0 0.0 0.0 Reven
Slide 29: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 383.4 346.6 355.5 461.2 423.8 Software revenue 421.6 226.4 232.8 201.9 493.2 Products revenue 805.0 573.0 588.3 663.1 916.9 Total services revenue 68.9 64.9 55.8 70.4 63.6 Other income 0.0 0
Slide 30: Income statement actual – Baltics (EUR million)
Income statement actual – Baltics (EUR million) EUR in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 16.6 16.1 15.6 25.8 19.4 Software revenue 1.9 3.1 2.5 5.7 3.1 Products revenue 18.5 19.2 18.1 31.5 22.6 Total services revenue 7.7 7.6 8.3 9.0 8.7 Other income 0.0 0.0 0.0 0.0 0.0 Revenue 26
Slide 31: Income statement actual – Baltics (NOK million)
Income statement actual – Baltics (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 159.8 153.8 149.9 248.5 189.2 Software revenue 18.6 29.2 23.5 54.5 30.6 Products revenue 178.4 183.0 173.4 302.9 219.8 Total services revenue 73.7 72.9 79.2 86.8 85.0 Other income 0.2 0.1 0.
Slide 32: Income statement actual – Shared services (NOK million)
Income statement actual – Shared services* (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 1,165.7 1,213.1 1,311.0 1,431.7 1,439.0 Software revenue 0.7 0.7 0.7 1.2 0.9 Products revenue 1,166.3 1,213.8 1,311.7 1,432.9 1,439.9 Total services revenue 87.2 98.0 89.3 96.6 112.
Slide 33: Income statement actual – AppXite (EUR million)
Income statement actual – AppXite (EUR million) EUR in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 0.0 0.0 0.0 0.0 0.0 Software revenue 0.0 0.0 0.0 0.0 0.0 Products revenue 0.0 0.0 0.0 0.0 0.0 Total services revenue 0.5 0.4 0.4 0.4 0.6 Other income 0.0 0.0 0.0 0.0 0.0 Revenue 0.5 0.4 0.4
Slide 34: Income statement actual – AppXite (NOK million)
Income statement actual – AppXite (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Hardware revenue 0.0 0.0 0.0 0.0 0.0 Software revenue 0.0 0.0 0.0 0.0 0.0 Products revenue 0.0 0.0 0.0 0.0 0.0 Total services revenue 4.7 3.6 3.8 4.3 5.6 Other income 0.0 0.1 0.1 0.4 0.1 Revenue 4.7 3.7 3.9
Slide 35: AICRA
AICRA Specialists in IT infrastructure