Slide 1: ITERA
ITERA
Slide 2: Agenda: Highlights, Business Review, Financial Review, Outlook, Q&A
Q3 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 Q3 2023
Q3 REPORT 2023 ITERA | 03 01 Highlights Q3 2023
Slide 4: Q3 in brief
Q3 REPORT 2023 ITERA | 04 Q3 in brief 14% Macro environment continues to be uncertain with various Temporarily slower pace of intake of new employees. Seasonal variations in order intake with book-to-bill of 0.6 in Our operation in Ukraine is running as normal, with increasing impact on industries,
Slide 5: Key figures
Q3 REPORT 2023 ITERA | 05 Key figures Q3 YTD Q3 YTD Q3 YTD 14% 22% 9% 9% 4.5% 9.3% 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 250 230 225 900 18% 800 741 762 16% 731 194
Slide 6: Business review
Q3 REPORT 2023 ITERA | 06 02 Business review
Slide 7: A mixed market environment
Q3 REPORT 2023 ITERA | 07 A mixed market environment Shifting focus on Our main markets such Strong demand for external facing such as Continued cost inflation as Banking & insurance digital technology, such revenue and customer at high level requires and Energy are less as cloud, data, AI and exper
Slide 8: We are specialists in sustainable digital transformation
Q3 REPORT 2023 ITERA | 08 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 9: Our steady growth organic model
Q3 REPORT 2023 ITERA | 09 Our steady growth organic model We have built a strong international ONE Packaged offerings and Speed, reusability industrialized services and subscription Itera operating model and will see more Customer-centric of divergence in the linearity between and selected headcount
Slide 10: Towards AI transformation
Q3 REPORT 2023 ITERA | 10 Towards AI transformation Cloud Digital AI Transformation Transformation Transformation Using algorithms and Using cloud computing Reimagining the business machine learning to increase as default option for through digitalization automation and value new IT capabilities and
Slide 11: Kredinor 'Kan'
Q3 REPORT 2023 ITERA | 11 Kredinor ‘Kan’ Itera has played a pivotal role in developing and implementing a new and innovative product for Kredinor, which can be explained as revolutionary within the Norwegian debt collection market. ▪ Kan is a service that aims to enhance employees' financial well- b
Slide 12: Transforming Business Pension Solutions
Q3 REPORT 2023 ITERA | 12 Transforming Business Pension Solutions Itera has had a key role at Storebrand, helping develop their new pension and insurance solution ‘Bedriftsveilederen’ for small businesses ▪ The result has been a groundbreaking solution that has earned them the prestigious UX Nordic
Slide 13: Large Public Sector framework agreements
Q3 REPORT 2023 ITERA | 13 Large Public Sector framework agreements Itera has won some of the largest Public Sector framework agreements in Norway by forming alliances with other consulting firms in a bid to compete with the biggest players Following Skatteetaten and NAV earlier this year, our consor
Slide 14: New edition of the Energy Market Report
Q3 REPORT 2023 ITERA | 14 New edition of the Energy Market Report In late September, we published another edition of The Power Market Report, a bi-yearly publication in cooperation with Thema Consulting. ▪ The report focuses on the Northern European Markets, where new customer-facing solutions will
Slide 15: Strengthened partnership with Microsoft
Q3 REPORT 2023 ITERA | 15 Strengthened partnership with Microsoft Itera's strategic partnership with Microsoft Industry Solutions Delivery (ISD) is materializing. Together, we have progressed to mature stages of opportunities, presenting and co-selling as a unified unit. ▪ The partnership gives Iter
Slide 16: Gold ranking in sustainability reporting by EcoVadis!
Q3 REPORT 2023 ITERA | 16 Gold ranking in sustainability reporting by EcoVadis! Itera has achieved a gold rating in the EcoVadis sustainability report. This places us among the top 2% of companies in our industry on a global basis. ▪ EcoVadis is a recognized rating agency within sustainability and h
Slide 17: Collaboration for the Future of Business in Ukraine
Q3 REPORT 2023 ITERA | 17 Collaboration for the Future of Business in Ukraine Together with Bergen Chamber of Commerce, we organized an event in September on how Western Norwegian companies can get engaged in supporting Ukraine from both short and long-term perspectives. ▪ Norway has unique opportun
Slide 18: Order intake
Q3 REPORT 2023 ITERA | 18 Order intake Order intake from selected new and existing customers. Book-to-bill ratio*) of 0.6 in Q3 and 1.0 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 19: Customer development
Q3 REPORT 2023 ITERA | 19 Customer development New business Revenue customers split (in MNOK) ▪ Existing customers accounted for 94.9% (91.3%) 100% 90% 21 22 16 19 15 24 30 17 10 of revenues in Q3 2023 80% 70% ▪ New customers won over the past year generated 60% 50% revenues of NOK 9.8 (14.8) millio
Slide 20: Skilled and innovative employees
Q3 REPORT 2023 ITERA | 20 Skilled and innovative employees 762 employees at the end of the quarter Number of employees end of quarter by shore ▪ Up by 61 (79) last twelve months 900 800 60% 50% 700 ▪ More than 60% of the FTE growth 600 500 40% in the Nordics 30% 400 300 20% 200 10% 100 0 0% Nearshor
Slide 21: Financial review
Q3 REPORT 2023 ITERA | 21 03 Financial review
Slide 22: Key financials
Q3 REPORT 2023 ITERA | 22 Key financials 2023 2022 Change 2023 2022 Change 2022 ▪ Organic revenue growth of 14% NOK Million 7-9 7-9 % 1-9 1-9 % FY ▪ Personnel expenses driven by Operating revenue 193.9 170.9 14% 649.5 530.4 22% 735.8 FTE growth, NOK depreciation Gross profit 181.6 160.6 13% 607.5 49
Slide 23: Revenue and earnings development
Q3 REPORT 2023 ITERA | 23 Revenue and earnings development EBIT MNOK margin 250 20% ▪ Strong sales growth year over year with 2-year CAGR of 22.5% and an 200 average of 10.1% EBIT margin 15% ▪ Quarterly figures are impacted 150 by number of working days less vacations. Q3 2023 had a weighted 10% ave
Slide 24: EBIT margin development
Q3 REPORT 2023 ITERA | 24 EBIT margin development EBIT margin development: ▪ Margin increase regular business: 0.6% ▪ Reduced opex ▪ Support to Ukraine: -0.4% ▪ Entry cost in Sweden: -0.5% ▪ Investment in capacity readiness for cloud expansion: -1.1%
Slide 25: Business Optimization
Q3 REPORT 2023 ITERA | 25 Business Optimization ▪ A periodic full review of the business undertaken to identify and implement Sales optimizing actions in all business units Demand generation and corporate functions ▪ Extensive involvement of management and key personnel in sales ▪ Impact of improvem
Slide 26: Statement of cash flow
Q3 REPORT 2023 ITERA | 26 Statement of cash flow 2023 2022 2023 2022 2022 NOK Million 7-9 7-9 1-9 1-9 FY 12 month rolling cash flow from operations (NOK Million) EBITDA 16.9 18.7 84.1 80.8 109.0 80 Change in balance sheet items (19.3) 3.4 (45.6) (46.2) (32.9) Net cash flow from operating activities
Slide 27: Dividend and own shares
Q3 REPORT 2023 ITERA | 27 Dividend and own shares ▪ A supplementary dividend of NOK 0.40 per share for 2022 to be paid 1.20 on 10 Nov 1.00 ▪ Share price was NOK 12.05 at the 0.80 NOK per share end of Sep 2023, a change of 0% 0.60 incl. dividends from NOK 12.65 at 0.40 the end of June 2022 0.20 ▪ Cur
Slide 28: Statement of financial position
Q3 REPORT 2023 ITERA | 28 Statement of financial position ▪ Equity ratio of 24% (27%) Assets Equity and Liabilities per 30 Sep 2023 350 ▪ 31% (30%) excl. IFRS 16 Leasing 300 73 ▪ Right-of-use assets up 250 Right-of-use assets MNOK 50 from new facility 23 Non-current 53 178 agreements 200 52 assets C
Slide 29: Outlook
Q3 report 2023 ITERA | 29 04 Outlook
Slide 30: Outlook
Q3 REPORT 2023 ITERA | 30 Outlook Underlying strong Continued attention Readiness to migrate Connecting Ukraine Profitable growth demand for digital on business and operate larger and the Nordics to and cash flow are transformation optimization to scale cloud enable the green key focus areas. throug
Slide 31: Q&A
Q3 REPORT 2023 ITERA | 31 05 Q&A
Slide 32: Top 20 shareholders
Q3 REPORT 2023 ITERA | 32 Top 20 shareholders No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS 32.08 NOR 26 363 031 2 OP CAPITAL AS 5.60 NOR 4 605 242 3 GIP AS 5.21 NOR 4 285 000 4 SEPTIM CONSULTING AS 3.94 NOR 3 235 343 5 BOINVESTERING AS 3.49 NOR 2 867 862 6 GAMST INVEST AS 3.13 NOR 2 575 070 7
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