Atea Asa · OSL:ATEA
Atea Asa — Q3 2017 Earnings Presentation
43 slides from Atea Asa's earnings presentation, Oct 19, 2017
Slide 1: Q3 2017 Presentation
Q3 2017 PRESENTATION 19 OCTOBER 2017
Slide 2: Highlights – Q3 2017
Highlights – Q3 2017 Strong growth in operating profit, driven by Norway, Sweden and Finland REVENUE of NOK 6.7 billion (up 3.9%) Change in currency rates positively impacts revenue growth by 0.9% EBITDA of NOK 269 million (up 14.8%) EBITDA margin of 4.0%, from 3.7% last year EBIT of NOK 176 million
Slide 3: Financial summary (NOK million)
Financial summary (NOK million) Increased sales of services and higher gross margin drive improved profitability REVENUE EBITDA EBIT +3.9% +14.8% +34.5% 6,403 6,654 269 176 234 131 Q3 16 Q3 17 Q3 16 Q3 17 Q3 16 Q3 17 Note: Currency exchange rates have a positive impact on revenue growth rates of 0.9
Slide 4: Norway
Norway Rapid growth in EBITDA, based on higher service revenue and lower headcount REVENUE EBITDA +5.3% +33.5% 1,864 79 1,770 59 NOK in million NOK in million Q3 16 Q3 17 Q3 16 Q3 17
Slide 5: Sweden
Sweden Growth in sales of services drives strong revenue and EBITDA performance REVENUE EBITDA +5.0% +19.5% 2,447 2,569 102 85 SEK in million SEK in million Q3 16 Q3 17 Q3 16 Q3 17
Slide 6: Denmark
Denmark Lower revenue offset by reduced headcount and lower operating expenses. EBIT ahead of guidance from prior quarterly presentation. REVENUE EBITDA EBIT -4.4% -5.7% +8.9% 1,376 61 1,316 57 19 17 DKK in million DKK in million DKK in million Q3 16 Q3 17 Q3 16 Q3 17 Q3 16 Q3 17
Slide 7: Finland
Finland High growth in revenue and improved margins drive profit turnaround REVENUE EBITDA +16.9% +0.7 MEUR 44 38 0.6 EUR in million EUR in million -0.1 Q3 16 Q3 17 Q3 16 Q3 17
Slide 8: Baltics
Baltics EBITDA falls based on lower sales and higher operating expenses REVENUE EBITDA -2.1% -19.7% 1.9 25 24 1.5 EUR in million EUR in million Q3 16 Q3 17 Q3 16 Q3 17
Slide 9: Cash flow from operations
Cash flow from operations Cash flow from operations of MNOK 189, up from MNOK 151 last year 1,765 Cash flow from operations is concentrated in Q4, based on seasonal movements in net working capital Net working capital balance has fallen by MNOK 287 since Q3 last year NOK in million 151 189 -321 -395
Slide 10: Status of Denmark improvement strategy
Status of Denmark improvement strategy Action Plan Status – October 2017 (from Q2 presentation – July 2017) Actions ✓ Headcount falls by 78 below peak at end-Q1 2017 ✓ Total operating expenses in Q3 fall by 5% from prior year * ✓ EBIT result in Q3 ahead of target ✓ New organization will be implement
Slide 11: Legal case in Denmark
Legal case in Denmark Current status • Court case started October 10 • Name ban lifted on seven individuals indicted in case, including four former Atea employees • As a company Atea in Denmark is legally responsible for actions committed by employees, one potential outcome is that Atea Denmark may
Slide 12: Strategic initiatives to improve profitability
Strategic initiatives to improve profitability STRENGTHEN CAPABILITIES IN HIGHER VALUE ADDED PRODUCTS AND SERVICES COUNTRY INITIATIVES LEVERAGE GROUP FUNCTIONS TO IMPROVE MARGINS TO REDUCE OPERATING COST AND PRODUCTIVITY Supply chain Service growth Nearshoring Security Service efficiency Group IT Hy
Slide 13: Summary – Q3 2017
Summary – Q3 2017 Strong growth in operating profit and improved cash flow REVENUE Revenue of NOK 6.7 billion, up 3.9% EBITDA EBITDA of NOK 269 million, up 14.8% EBIT Cash flow from operations of NOK 189 EBIT of NOK 176 million, up 34.5% CASH FLOW million, up from NOK 151 million last year * Currenc
Slide 14: Specialists in IT infrastructure
AIC Specialists in IT infrastructure
Slide 15: Q3 2017 Fact Pack
AICR Q3 2017 FACT PACK
Slide 16: Highlights - Group
Highlights - Group Q3 Q3 YTD YTD Full year NOK in million 2017 2016 2017 2016 2016 Group revenue 6,654 6,403 22,423 22,092 31,188 Gross margin (%) 24.2% 23.5% 22.7% 22.5% 22.2% EBITDA 269 234 687 631 1,085 EBITDA margin (%) 4.0% 3.7% 3.1% 2.9% 3.5% EBIT 176 131 407 320 677 Net profit 124 93 278 221
Slide 17: Consolidated statement of financial position - Group
Consolidated statement of financial position - Group CURRENCY: MNOK 30 Sep 2017 30 Sep 2016 31 Dec 2016 ASSETS Property, plant and equipment 632 699 682 Deferred tax assets 547 551 563 Goodwill 3,742 3,606 3,658 Other intangible assets 273 305 294 Other non-current receivables 19 12 7 Non-current as
Slide 18: Full-time employees - Group
Full-time employees - Group FTEs, end of period 30 Sep 2017 30 Sep 2016 Norway 1,576 1,607 Sweden 2,170 2,023 Denmark 1,504 1,562 Finland 333 328 Baltics 685 716 Logistics 219 214 Atea Global Services 365 342 Atea ASA 9 9 Atea Group 6,861 6,801
Slide 19: Financial performance actual – Segment
Financial performance actual – Segment NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Norway 1,730.9 1,881.6 1,769.8 2,448.2 1,734.8 1,910.0 1,863.6 Sweden 2,878.9 3,456.0 2,373.3 3,193.5 2,690.0 3,408.7 2,521.8 Denmark 1,785.7 2,403.8 1,714.9 2,578.4 2,010.8 2,257.7 1,659.7 Finland 681.1
Slide 20: Financial performance pro forma – Segment
Financial performance pro forma – Segment NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Norway 1,730.9 1,881.6 1,769.8 2,448.2 1,734.8 1,910.0 1,863.6 Sweden 2,886.3 3,456.0 2,373.2 3,193.4 2,690.0 3,408.7 2,521.8 Denmark 1,785.7 2,403.8 1,714.9 2,578.4 2,010.8 2,257.7 1,659.7 Finland 681
Slide 21: Income statement actual - Group (NOK million)
Income statement actual - Group (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 4,011.9 4,205.7 4,129.7 5,464.3 4,049.9 4,085.5 4,067.0 Software revenue 1,766.8 2,697.6 932.5 2,013.7 1,839.4 2,789.5 1,131.4 Products revenue 5,778.7 6,903.3 5,062.2 7,478.0 5,88
Slide 22: Income statement pro forma - Group (NOK million)
Income statement pro forma - Group (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 4,013.7 4,205.7 4,129.7 5,464.3 4,049.9 4,085.5 4,067.0 Software revenue 1,766.8 2,697.6 932.5 2,013.7 1,839.4 2,789.5 1,131.4 Products revenue 5,780.4 6,903.3 5,062.2 7,478.0 5
Slide 23: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 936.3 1,090.3 1,108.5 1,525.2 977.2 1,055.7 1,147.9 Software revenue 359.8 347.8 253.0 451.3 313.2 405.8 280.9 Products revenue 1,296.1 1,438.0 1,361.4 1,976.5 1,290.4 1,461.4 1,4
Slide 24: Income statement pro forma – Norway (NOK million)
Income statement pro forma – Norway (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 936.3 1,090.3 1,108.5 1,525.2 977.2 1,055.7 1,147.9 Software revenue 359.8 347.8 253.0 451.3 313.2 405.8 280.9 Products revenue 1,296.1 1,438.0 1,361.4 1,976.5 1,290.4 1,461.4
Slide 25: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) DKK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 820.3 903.2 891.6 1,320.2 965.3 782.8 756.4 Software revenue 225.5 628.9 134.7 338.7 319.1 643.4 188.6 Products revenue 1,045.8 1,532.1 1,026.4 1,658.9 1,284.4 1,426.2 945.0 Tota
Slide 26: Income statement pro forma – Denmark (DKK million)
Income statement pro forma – Denmark (DKK million) DKK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 820.3 903.2 891.6 1,320.2 965.3 782.8 756.4 Software revenue 225.5 628.9 134.7 338.7 319.1 643.4 188.6 Products revenue 1,045.8 1,532.1 1,026.4 1,658.9 1,284.4 1,426.2 945.0 T
Slide 27: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 1,047.3 1,132.5 1,113.4 1,618.4 1,166.4 990.8 952.4 Software revenue 288.0 792.7 165.0 411.6 385.6 802.1 241.4 Products revenue 1,335.3 1,925.2 1,278.4 2,030.1 1,551.9 1,792.9 1,
Slide 28: Income statement pro forma – Denmark (NOK million)
Income statement pro forma – Denmark (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 1,047.3 1,132.5 1,113.4 1,618.4 1,166.4 990.8 952.4 Software revenue 288.0 792.7 165.0 411.6 385.6 802.1 241.4 Products revenue 1,335.3 1,925.2 1,278.4 2,030.1 1,551.9 1,792.9
Slide 29: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) SEK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 1,591.3 1,582.9 1,590.9 1,858.7 1,518.7 1,619.5 1,610.4 Software revenue 743.2 1,329.3 436.6 1,015.1 819.8 1,375.1 493.2 Products revenue 2,334.5 2,912.2 2,027.5 2,873.8 2,338.4 2
Slide 30: Income statement pro forma – Sweden (SEK million)
Income statement pro forma – Sweden (SEK million) SEK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 1,593.0 1,582.9 1,590.9 1,858.7 1,518.7 1,619.5 1,610.4 Software revenue 743.2 1,329.3 436.6 1,015.1 819.8 1,375.1 493.2 Products revenue 2,336.2 2,912.2 2,027.5 2,873.8 2,338.
Slide 31: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 1,625.3 1,590.4 1,554.1 1,736.7 1,435.3 1,565.8 1,574.6 Software revenue 759.1 1,340.5 411.9 950.2 774.8 1,324.2 491.3 Products revenue 2,384.5 2,930.9 1,966.1 2,686.9 2,210.1 2,8
Slide 32: Income statement pro forma – Sweden (NOK million)
Income statement pro forma – Sweden (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 1,627.1 1,590.4 1,554.1 1,736.7 1,435.3 1,565.8 1,574.6 Software revenue 759.1 1,340.5 411.9 950.2 774.8 1,324.2 491.3 Products revenue 2,386.2 2,930.9 1,966.1 2,686.9 2,210.1
Slide 33: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) EUR in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 28.7 26.2 23.3 35.9 38.4 35.4 26.6 Software revenue 36.8 21.7 9.4 19.0 39.7 24.6 10.8 Products revenue 65.5 48.0 32.7 55.0 78.2 60.1 37.4 Total services revenue 6.0 6.7 5.2 7.1 6
Slide 34: Income statement pro forma – Finland (EUR million)
Income statement pro forma – Finland (EUR million) EUR in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 28.7 26.2 23.3 35.9 38.4 35.4 26.6 Software revenue 36.8 21.7 9.4 19.0 39.7 24.6 10.8 Products revenue 65.5 48.0 32.7 55.0 78.2 60.1 37.4 Total services revenue 6.0 6.7 5.2 7.
Slide 35: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 273.4 244.3 215.7 327.2 345.3 332.7 249.9 Software revenue 350.2 200.9 85.9 171.2 356.8 233.9 103.2 Products revenue 623.5 445.2 301.6 498.4 702.1 566.5 353.1 Total services reve
Slide 36: Income statement pro forma – Finland (NOK million)
Income statement pro forma – Finland (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 273.4 244.3 215.7 327.2 345.3 332.7 249.9 Software revenue 350.2 200.9 85.9 171.2 356.8 233.9 103.2 Products revenue 623.5 445.2 301.6 498.4 702.1 566.5 353.1 Total services r
Slide 37: Income statement actual – Baltics (EUR million)
Income statement actual – Baltics (EUR million) EUR in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 12.5 13.9 14.4 27.4 12.8 14.1 14.6 Software revenue 5.0 2.5 2.4 4.3 1.9 4.0 2.3 Products revenue 17.5 16.4 16.8 31.7 14.7 18.1 16.9 Total services revenue 6.1 6.3 8.2 6.9 6.7 7.4
Slide 38: Income statement pro forma – Baltics (EUR million)
Income statement pro forma – Baltics (EUR million) EUR in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 12.5 13.9 14.4 27.4 12.8 14.1 14.6 Software revenue 5.0 2.5 2.4 4.3 1.9 4.0 2.3 Products revenue 17.5 16.4 16.8 31.7 14.7 18.1 16.9 Total services revenue 6.1 6.3 8.2 6.9 6.7
Slide 39: Income statement actual – Baltics (NOK million)
Income statement actual – Baltics (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 118.9 129.9 133.8 250.9 115.0 131.8 136.6 Software revenue 47.9 22.8 22.0 39.3 17.5 37.1 21.8 Products revenue 166.7 152.7 155.8 290.2 132.4 168.9 158.4 Total services revenue 57
Slide 40: Income statement pro forma – Baltics (NOK million)
Income statement pro forma – Baltics (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 118.9 129.9 133.8 250.9 115.0 131.8 136.6 Software revenue 47.9 22.8 22.0 39.3 17.5 37.1 21.8 Products revenue 166.7 152.7 155.8 290.2 132.4 168.9 158.4 Total services revenue
Slide 41: Income statement actual – Shared services (NOK million)
Income statement actual – Shared services (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 1,032.0 1,071.1 1,146.4 1,300.5 971.1 1,035.9 1,161.9 Software revenue 2.7 2.5 1.2 2.1 1.2 1.9 2.9 Products revenue 1,034.7 1,073.7 1,147.6 1,302.6 972.4 1,037.8 1,164.7
Slide 42: Income statement pro forma – Shared services (NOK million)
Income statement pro forma – Shared services (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Hardware revenue 1,032.0 1,071.1 1,146.4 1,300.5 971.1 1,035.9 1,161.9 Software revenue 2.7 2.5 1.2 2.1 1.2 1.9 2.9 Products revenue 1,034.7 1,073.7 1,147.6 1,302.6 972.4 1,037.8 1,164
Slide 43: Specialists in IT infrastructure
AIC Specialists in IT infrastructure