Slide 1: Q4 Report 2021
Q4 REPORT 2021 Q3 2021
Slide 2: Agenda
Q4 REPORT 2021 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 Q4 2021
Q4 REPORT 2021 01 Highlights Q4 2021
Slide 4: Q4 in brief
Q4 REPORT 2021 Q4 in brief 17% Attractive market driven by Leveraging our 18 MNOK Launching of next generation New office opening in sustainability investments in AI-based Iceland for Growth in core and digitalisation Digital Factory at offering for anti- further digital business in all industries S
Slide 5: Key figures core digital business
Q4 REPORT 2021 Key figures core digital business 17% 22% 11.5% Organic revenue Growth in number Operating margin growth of employees Revenues 2019 2020 2021 Employees EBIT margin NOK million End of period 2019 2020 2021 % 2019 2020 2021 170 159 650 617 18% 151 589 15.3 % 150 144 600 16% 14.8 % 139 5
Slide 6: Business review
Q4 REPORT 2021 02 Business review
Slide 7: Specialist in creating sustainable digital business
Q4 REPORT 2021 Specialist in creating sustainable digital business At Itera, we share a commitment to make a positive difference in the world. As a society, the most urgent challenge we face is how to live and work sustainably. REYKJAVIK UNDERSTAND THE CUSTOMER BERGEN OSLO STAVANGER FREDRIKSTAD STOC
Slide 8: Creating end-to-end understanding of value creation
Q4 REPORT 2021 Creating end-to-end understanding of value creation FOCUS CONVERSATIONS Industry Business Agenda Business & Product Agenda Business Outcome & Digital Agenda Digital Agenda Potential Disruption We Initiative Digital Initiative Digital Initiative Digital Initiative Digital Initiative op
Slide 9: Fighting financial crime with Artificial Intelligence
Q4 REPORT 2021 Fighting financial crime with Artificial Intelligence Customer Know Your Customer (KYC) Customer on-boarding onboarding & review off-boarding Itera launched a next Customer Lifecycle generation AI-based offering Management New Due diligence CRR Continuous entity Event driven / for ant
Slide 10: Visions for a new era of fighting financial crime are needed
Q4 REPORT 2021 Visions for a new era of fighting financial crime are needed n November, tera published a report together with its partner BM, titled “Fighting Financial Crime With ”. To create awareness of our modern solutions for financial crime prevention, Itera and IBM arranged a webinar and a ro
Slide 11: Digital Factory at Scale for data-driven businesses
Q4 REPORT 2021 Digital Factory at Scale for data-driven businesses Innovation Faster business innovation through CUSTOMER BUSINESS & DIGITAL STRATEGY autonomous teams and adoption of cloud services Speed Business agility and reduced time- CLOUD CUSTOMER ANALYTICS & to-market through efficient MIGRAT
Slide 12: Business events that trigger a transition to cloud
Q4 REPORT 2021 Business events that trigger a transition to cloud Tactical Data centre Data centre Cloud Data centre Infrastructure Exit consolidation strategy contracts expiry renewal cycle Strategic IT Digital New business initiatives modernisation transformation
Slide 13: Cloud migration and modernisation strategies
Q4 REPORT 2021 Cloud migration and modernisation strategies Initiatives led by need of productivity and agility improvement Modernise COST Strategic initiatives that are enabling innovation, insights and artificial intelligence Rapid data centre exit, mergers and acquisitions, divestitures DURATION
Slide 14: Mastercard accelerates and grows engagement
Q4 REPORT 2021 Mastercard accelerates and grows engagement One of our latest projects was to help Mastercard develop flexible and secure solutions to handle both brand sites and B2B core solutions with all their integrations An engagement for Mastercard Payment Solutions (MPS). The solutions are int
Slide 15: Cloud migration for faster time to market at a lower cost
Q4 REPORT 2021 Cloud migration for faster time to market at a lower cost Denmark’s best known real estate agency had to make a smooth migration to the cloud without disturbing day-to- day business. Home is Denmark's most well-known real estate chain, 100% owned by Realkredit Danmark. The chain consi
Slide 16: Digital transformation towards SaaS solutions
Q4 REPORT 2021 Digital transformation towards SaaS solutions DNV is modernising its digital solutions in the cloud for managing risk, improving safety and asset performance. DNV is modernising its digital solutions to support customers around the world towards the future of Industry 4.0 The solution
Slide 17: New office opening in Iceland
Q4 REPORT 2021 New office opening in Iceland After five successful years in the Icelandic market, partnering with ambitious customers like Össur, Landsbankinn and Íslandsbanki, Itera opened a branch office in Reykjavik in the fourth quarter. The office opening represents a natural next step due to i
Slide 18: Efficient onboarding of new employees as ONE Itera
Q4 REPORT 2021 Efficient onboarding of new employees as ONE Itera With a 22% growth in employees the last 12 months, well-functioning and efficient onboarding processes across all locations are important. Orientation Day A practical day to get to know different systems and processes. Onboarding Day
Slide 19: Business continuity plan in place for our offices in Ukraine
Q4 REPORT 2021 Business continuity plan in place for our offices in Ukraine Despite growing tensions in and around Ukraine, we have a normal operation and activity level at our office in Kyiv. We have updated our business continuity plans for our personnel and operations in case of further escalatio
Slide 20: Order intake
Q4 REPORT 2021 Order intake Order intake from selected new and existing customers Book-to-bill ratio*) of 1.5 in Q4 for core digital business and 1.1 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
Q4 REPORT 2021 Customer development Revenue customers split (in MNOK) New business 100% 20 16 11 12 18 ▪ Existing customers accounted for 86.6% (92.8%) of revenues 20 23 21 22 80% in Q4 2021 60% ▪ New customers won over the past year generated revenues of 141 133 126 155 139 126 138 127 145 NOK 22.5
Slide 22: Skilled and innovative employees in core digital business
Q4 REPORT 2021 Skilled and innovative employees in core digital business 617 employees at the end of the quarter Number of employees end of quarter by shore 700 55 % ▪ Up by 28 in the quarter 600 53 % 500 51 % ▪ Up by 113 (55) last twelve months 400 49 % 300 47 % 200 100 45 % Nearshore ratio of 53%
Slide 23: Financial review
Q4 REPORT 2021 03 Financial review
Slide 24: Financial reporting 2021
Q4 REPORT 2021 Financial reporting 2021 Given the discontinuation of the data centre operations, focus for our financial reporting is on the core digital business, including the investment in the Cloud Centre of Excellence.
Slide 25: Key financials core digital business
Q4 REPORT 2021 Key financials core digital business 2021 2020 change change ▪ Strong growth of 17% fuelled by some Amounts in NOK million 10-12 10-12 % major new accounts and more Sales revenue 158.7 135.6 23.1 17.0 % subcontractors Cost of sales 11.4 10.3 1.1 10.9 % ▪ Personnel expenses include hig
Slide 26: Revenue and earnings development
Q4 REPORT 2021 Revenue and earnings development 180 18% ▪ Strong sales growth year over year with 2-year CAGR of 14.5% and 1.1% margin 160 16% improvement 140 14% ▪ Quarterly figures are impacted by 120 12% number of working days net of 100 10% vacations 80 8% 60 6% 40 4% 20 2% 0 0% Q1 Q2 Q3 Q4 Q1 Q
Slide 27: Subscription revenue from data centre operations
Q4 REPORT 2021 Subscription revenue from data centre operations MNOK 25 20 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 ▪ Migrations and transfers (those with no imminent cloud journey) to be completed by end of Q1 ▪ Residual planned exits compl
Slide 28: Segment reporting
Q4 REPORT 2021 Segment reporting 10-12 2021 10-12 2020 Growth Year-to-date growth Core Data Core Data digital centre digital centre Core Core business operations business operations digital Data centre digital Data centre Amounts in NOK million (95%) (5%) Total (81%) (19%) Total business operations
Slide 29: Statement of cash flow
Q4 REPORT 2021 Statement of cash flow 2021 2020 2021 2020 NOK Million 10-12 10-12 1-12 1-12 12 month rolling cash flow from operations Cash flow from operations (EBITDA) 20.8 29.2 87.1 108.9 (NOK Million) Change in balance sheet items 12.1 6.5 (17.3) (9.7) 99 Net cash flow from operating activities
Slide 30: Dividend and own shares
Q4 REPORT 2021 Dividend and own shares ▪ A supplementary dividend of NOK 0.10 was paid in 0.90 December. Total dividend for 2020 is NOK 0.35 per 0.80 share. 0.70 0.60 The Board has proposed an ordinary dividend of NOK NOK per share ▪ 0.50 0.20 per share for 2021 with the opportunity to pay a 0.40 su
Slide 31: Statement of financial position
Q4 REPORT 2021 Statement of financial position Assets Equity and Liabilities ▪ Equity ratio of 18% (15%) per 31 December 2021 250 ▪ 21% (18%) excl. IFRS 16 Leasing 200 38 Right-of-use 31 assets ▪ Cash balance of MNOK 37 Non-current 45 55 (MNOK 54) 150 assets Current 160 164 MNOK liabilities ▪ Total
Slide 32: Outlook
(a REPORT 2021 TTERA 04 Outlook
Slide 33: Outlook
Q4 REPORT 2021 Outlook Modern business in Strong position Core digital business Data centres being Regional expansion the cloud is the new through its end-to- will continue to grow closed down and in the Nordics for normal accelerated end services, world- at full speed. reported as proximity to more
Slide 34: Q&A
Q4 REPORT 2021 05 Q&A
Slide 35: Make a difference!
Slide 36: Top 20 shareholders
Q4 REPORT 2021 Top 20 shareholders No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS* 30.01 NOR 24 663 031 2 OP CAPITAL AS 5.54 NOR 4 551 083 3 GIP AS 5.06 NOR 4 162 000 4 EIKESTAD AS 3.89 NOR 3 200 000 5 SEPTIM CONSULTING AS 3.59 NOR 2 950 000 6 BOINVESTERING AS 3.27 NOR 2 686 968 7 DnB NOR Bank A