Atea Asa · OSL:ATEA
Atea Asa — Q2 2020 Earnings Presentation
32 slides from Atea Asa's earnings presentation, Jul 15, 2020
Slide 1: Q2 2020 Presentation
Q2 2020 PRESENTATION July 15, 2020
Slide 2: Highlights – Q2 2020
Highlights – Q2 2020 Record high financial performance despite an adverse economic climate Revenue of NOK 10.6 billion (up 11.7%) ‒ Growth across all business lines EBIT of NOK 220 million (up 51.4%) ‒ Operating expenses scale with revenue increase Cash flow from operations of NOK 1.0 billion ‒ High
Slide 3: Income Statement – Q2 2020
Income Statement – Q2 2020 Q2 2020 Q2 2019 Growth Comments Hardware 4,716 4,437 6.3 % Software 4,079 3,380 20.7 % Very strong growth in sales of software Services 1,803 1,669 8.1 % Revenue 10,598 9,485 11.7 % High profit growth in Atea Logistics, Gross profit 2,065 1,904 8.5 % operating from new dis
Slide 4: Business unit performance – Q2 2020
Business unit performance – Q2 2020 • Record high EBIT in Norway, Finland and Baltics during Q2 • Major EBIT improvement in Denmark, driven by cost reductions • Strong profit improvement in shared functions (e.g., Logistics, Service Desk, Nearshoring) % REVENUE REVENUE EBIT CURRENCY: Local in millio
Slide 5: Financial performance relative to long-term trend (2015-19)
Financial performance relative to long-term trend (2015 - 2019) • EBIT growth outside Denmark in Q2 2020 is a return to longer-term trend (2015 - 2019 CAGR) • EBIT in Denmark is a step toward recovery following a major decline over the last few years. EBIT in Q2 2020 is best performance in a second
Slide 6: Cash flow from operations
Cash flow from operations Very strong operating cash flow in Q2 2020, impacted by: CURRENCY: MNOK Q2 2020 Q2 2019 • Higher profit Operating Cash flow, before change in working capital 326 267 • Reduction in working capital balance during Q2 2020 Changes in working capital 1,202 -457 – Tight control
Slide 7: Net financial position
Net financial position Net financial position of NOK +459 million Net debt / EBITDA ratio* of -0.3 is NOK 3.9 billion below loan covenants *Net debt and rolling 4 quarter EBITDA as defined in Atea's loan covenants See Note 13 in Interim Financial Statements for further definition
Slide 8: COVID-19 actions (as presented with Q1 2020 results)
COVID-19 actions (as presented with Q1 2020 results) • Large organizations require IT investments / support as their workforce adapts to remote operations Sales opportunity • Sales (order inflow) in Q1 was up 10% from last year as order backlog increased in digital workplace • Supply chain disruptio
Slide 9: Digitalization of the Norwegian health services
Digitalization of the Norwegian health services • Deliver and operate collaboration solutions to the Norwegian health network’s 7000+ public and private customers in Norway • Four year contract – MNOK 500 • Common goals and incentives to attract as many customers onto the digital platform as quickly
Slide 10: Atea – IBM – Norwegian Seafood Association
Atea – IBM – Norwegian Seafood Association Food trust A sustainable food system Blockchain A transparent and secure system for transactions and value chains
Slide 11: The time is now: A digital platform for subscription and consumption based enablement
The time is now …… A digital platform for subscription and consumption based enablement
Slide 12: Summary – Q2 2020
Summary – Q2 2020 REVENUE Revenue of NOK 10.6 billion, up NET PROFIT Net profit of NOK 151 million, up 55.3% 11.7% Net financial position of NOK 459 million EBIT EBIT of NOK 220 million, up 51.4% NET DEBT (-0.3 x EBITDA*) * Net debt and EBITDA as defined in Atea’s loan covenants. EBITDA for l
Slide 13: AICR
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Slide 14: Q2 2020 Fact Pack
Q2 2020 FACT PACK
Slide 15: Highlights – Group
Highlights – Group Q2 Q2 H1 H1 Full year NOK in million 2020 2019 2020 2019 2019 Group revenue 10,598 9,485 19,641 18,624 36,655 Gross profit 2,065 1,904 4,062 3,841 7,758 Gross margin (%) 19.5% 20.1% 20.7% 20.6% 21.2% EBIT 220 145 252 261 747 EBIT margin (%) 2.1% 1.5% 1.3% 1.4% 2.0% Net profit 151
Slide 16: Consolidated statement of financial position – Group
Consolidated statement of financial position – Group NOK in million 30 Jun 2020 30 Jun 2019 31 Dec 2019 ASSETS Property, plant and equipment 533 542 498 Right-of-use assets 1,244 840 996 Deferred tax assets 378 409 354 Goodwill 4,172 3,809 3,881 Other intangible assets 282 232 237 Investment in asso
Slide 17: Full-time employees - Group
Full-time employees - Group FTEs, end of period 30 Jun 2020 30 Jun 2019 31 Dec 2019 Norway 1,619 1,675 1,687 Sweden 2,537 2,549 2,620 Denmark 1,313 1,445 1,461 Finland 414 391 431 Baltics 614 660 664 Logistics 242 252 257 Atea Global Services 436 398 418 Atea ASA 11 12 12 AppXite 36 37 35 Atea Group
Slide 18: Financial performance actual – Segment
Financial performance actual – Segment NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Norway 2,441.6 2,177.4 2,194.3 2,613.3 2,241.9 2,306.5 Sweden 3,575.3 3,984.2 3,011.8 4,225.0 3,526.9 4,575.7 Denmark 1,870.9 2,339.9 1,680.5 2,197.0 1,822.0 2,581.9 Finland 980.5 749.5 711.9 827.9 1,183.9 870.
Slide 19: Financial performance pro forma – Segment
Financial performance pro forma – Segment NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Norway 2,445.7 2,180.5 2,198.7 2,613.3 2,241.9 2,306.5 Sweden 3,575.3 3,984.2 3,011.8 4,225.0 3,526.9 4,575.7 Denmark 1,870.9 2,339.9 1,680.5 2,197.0 1,822.0 2,581.9 Finland 980.5 749.5 711.9 827.9 1,183.9 8
Slide 20: Income statement actual - Group (NOK million)
Income statement actual - Group (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Hardware revenue 4,872.9 4,436.8 4,522.5 5,488.3 4,510.1 4,716.1 Software revenue 2,594.8 3,379.7 1,764.4 2,859.1 2,767.5 4,079.0 Products revenue 7,467.7 7,816.5 6,286.9 8,347.4 7,277.6 8,795.0 Total se
Slide 21: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Hardware revenue 1,315.6 1,172.0 1,247.5 1,489.1 1,154.7 1,188.2 Software revenue 613.7 452.2 435.2 577.4 515.4 563.7 Products revenue 1,929.3 1,624.2 1,682.8 2,066.4 1,670.1 1,751.9 Total services reve
Slide 22: Income statement pro forma – Norway (NOK million)
Income statement pro forma – Norway (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Hardware revenue 1,315.6 1,172.0 1,247.5 1,489.1 1,154.7 1,188.2 Software revenue 613.7 452.2 435.2 577.4 515.4 563.7 Products revenue 1,929.3 1,624.2 1,682.8 2,066.4 1,670.1 1,751.9 Total services r
Slide 23: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) DKK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Hardware revenue 804.5 728.4 701.5 884.1 651.1 623.8 Software revenue 304.1 756.6 287.6 419.1 363.0 858.4 Products revenue 1,108.6 1,485.0 989.1 1,303.1 1,014.1 1,482.1 Total services revenue 324.7 312
Slide 24: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Hardware revenue 1,050.1 947.7 926.7 1,189.6 911.1 922.8 Software revenue 397.0 985.5 382.4 566.9 508.0 1,249.0 Products revenue 1,447.1 1,933.1 1,309.2 1,756.4 1,419.0 2,171.8 Total services revenue 4
Slide 25: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) SEK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Hardware revenue 2,014.3 1,866.1 1,967.4 2,224.8 1,813.1 1,867.6 Software revenue 1,156.0 1,823.7 713.4 1,498.0 1,119.9 1,893.1 Products revenue 3,170.3 3,689.8 2,680.8 3,722.8 2,932.9 3,760.7 Total ser
Slide 26: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Hardware revenue 1,883.0 1,706.8 1,817.1 2,104.6 1,775.7 1,929.6 Software revenue 1,080.6 1,675.9 658.1 1,415.7 1,096.8 1,936.4 Products revenue 2,963.6 3,382.6 2,475.2 3,520.4 2,872.5 3,866.0 Total ser
Slide 27: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) EUR in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Hardware revenue 43.5 44.5 38.1 48.4 45.3 42.9 Software revenue 50.6 25.6 26.5 24.7 60.2 27.1 Products revenue 94.1 70.2 64.6 73.0 105.5 70.0 Total services revenue 6.5 7.0 7.5 9.0 7.7 8.1 Revenue 100.
Slide 28: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Hardware revenue 423.8 432.8 375.8 486.5 473.5 473.6 Software revenue 493.2 248.8 262.0 251.2 629.9 308.1 Products revenue 916.9 681.6 637.8 737.7 1,103.4 781.6 Total services revenue 63.6 67.9 74.0 90
Slide 29: Income statement actual – Baltics (EUR million)
Income statement actual – Baltics (EUR million) EUR in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Hardware revenue 19.4 17.7 15.1 20.1 16.5 16.1 Software revenue 3.1 3.0 3.7 8.5 7.2 2.3 Products revenue 22.6 20.8 18.8 28.7 23.7 18.4 Total services revenue 8.7 9.0 8.4 10.9 8.3 8.3 Revenue 31.3 29.7
Slide 30: Income statement actual – Baltics (NOK million)
Income statement actual – Baltics (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Hardware revenue 189.2 172.3 148.9 202.4 172.5 177.7 Software revenue 30.6 29.4 36.1 85.0 75.2 26.7 Products revenue 219.8 201.7 185.0 287.4 247.7 204.4 Total services revenue 85.0 87.2 83.0 109.6 86.6
Slide 31: Income statement actual – Group Shared Services (NOK million)
Income statement actual – Group Shared Services (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Hardware revenue 1,439.0 1,353.5 1,510.7 1,704.1 1,589.0 1,682.5 Software revenue 0.9 2.9 4.1 4.9 5.2 6.7 Products revenue 1,439.9 1,356.4 1,514.8 1,709.0 1,594.2 1,689.2 Total services r
Slide 32: AICR
AICR Specialists in IT infrastructure