Atea Asa · OSL:ATEA
Atea Asa — Q1 2015 Earnings Presentation
48 slides from Atea Asa's earnings presentation, Apr 23, 2015
Slide 1: Q1 2015 presentation
23 April 2015 Q1 2015 presentation
Slide 2: Q1 Highlights
Q1 Highlights Growth in revenue, EBITDA and cash flow • Revenue of NOK 6 498 million, up 10.4% • EBITDA* of NOK 202 million, up 12.1% • EBIT of NOK 100 million, up 10.5% • Cash flow from operations of NOK 25 million, up from -149 in Q1 last year * Before share-based compensation, expenses related to
Slide 3: Financial Highlights
Financial Highlights Revenue and EBITDA* grow, driven by sales of higher value added products (data center, communications, security solutions) Revenue EBITDA* +10.4% +12.1% 6 498 202 NOK in million NOK in million 5 884 180 Q1 14 Q1 15 Q1 14 Q1 15 * Before share-based compensation, expenses related
Slide 4: Group hardware revenue
Group hardware revenue Growth vs corresponding quarter last year 17.1 % 14.5 % 14.3 % 12.5 % 9.9 % Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Gross margin development 13.6 % 13.1 % 13.4 % 12.7 % 12.7 % Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
Slide 5: Group software revenue
Group software revenue Growth vs corresponding quarter last year 21.7 % 13.0 % 11.1 % 5.5 % -1.6 % Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Gross margin development 17.1 % 10.3 % 10.9 % 11.0 % 9.1 % Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
Slide 6: Group services revenue
Group services revenue Growth vs corresponding quarter last year 13.1 % 4.6 % 4.2 % 1.8 % 0.8 % Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Gross margin development 66.5 % 67.2 % 65.7 % 66.1 % 64.0 % Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
Slide 7: Norway
Norway Higher software sales and acquisitions drive growth Revenue EBITDA* b +3.3% b +2.4% 1 622 40 1 570 39 NOK in million NOK in million Q1 14 Q1 15 Q1 14 Q1 15 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 8: Sweden
Sweden Sales of products continue to grow rapidly, with strong start to 2015 Revenue EBITDA* +10.1% b +12.7% b 70 2 498 SEK in million 62 2 269 SEK in million Q1 14 Q1 15 Q1 14 Q1 15 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 9: Denmark
Denmark Growth driven by higher value added products, following Axcess acquisition Revenue EBITDA* +12.5% b +14.7% b 79 1 557 DKK in million DKK in million 69 1 384 Q1 14 Q1 15 Q1 14 Q1 15 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 10: Finland
Finland Increased sales of software drive higher revenue Revenue EBITDA* +9.8% b +1.8% b 65 0.4 0.4 59 EUR in million EUR in million Q1 14 Q1 15 Q1 14 Q1 15 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 11: The Baltics
The Baltics Strong financial performance, based on improved market conditions Revenue EBITDA* +15.3% b +8.9% b 23 0.9 EUR in million EUR in million 0.8 20 Q1 14 Q1 15 Q1 14 Q1 15 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 12: Cash flow from operations
Cash flow from operations Major improvement in operating cash flow, during seasonally slower Q1 786 NOK in million 425 +174 25 -103 -149 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
Slide 13: IT Security threat is escalating rapidly
IT Security threat is escalating rapidly Huge increase in IT security incidents and financial losses in 2014 • Security incidents (detected) grew PwC IT security survey*: 48% in 2014, according to Millions of detected security incidents* PwC IT security survey* 50 • The large majority of IT security
Slide 14: Several trends drive increased IT security risk
Several trends drive increased IT security risk Endpoints: • Rapid growth in new devices connected to networks, including mobile New devices on networks and sensors (IOE) • Many devices used for both personal and private applications, exposing networks to software which has not been authorized by IT
Slide 15: Most organizations are unprepared for IT security risk
Most organizations are unprepared for IT security risk • Less than half of IT managers surveyed feel they have good understanding of the threat landscape* • One-third of IT managers that had suffered data breaches knew what data had been stolen from them* • Proposed EU Data Protection regulation wil
Slide 16: IT security requires a multifaceted approach
IT security requires a multifaceted approach Organizations need a comprehensive strategy for IT security, including systems for protecting access points, data and applications, and solutions for threat response Endpoint protection Data and applications Threat response • Protect unwanted entry to • P
Slide 17: IT Security market opportunity
IT Security market opportunity • The IT security market is large and rapidly growing – Represented NOK 1 billion in Atea’s revenue in 2014, an increase of 41% from the prior year – Market expected to grow at approx. 10% per year, vs. 2-3% for the total IT infrastructure market • The role of the solu
Slide 18: Summary
Summary • Strong growth in revenue • Shift in revenue mix toward higher value added products (including IT security solutions) • Improved margins within all three business areas • Strong growth in EBITDA • Solid cash flow improvement • Management change in Norway
Slide 19: Specialists in IT infrastructure
ATCR Specialists in IT infrastructure ATCA
Slide 20: Q1 2015 Fact pack
Q1 2015 Fact pack ATCA
Slide 21: Key numbers - Group
Key numbers - Group Q1 Q1 Full Year 2015 2014 2014 Group revenue (NOK in million) 6,498.2 5,884.3 24,588.4 Gross margin (%) 23.7 23.4 23.3 EBITDA (NOK in million) * 202.1 180.3 958.3 EBITDA margin (%) * 3.1 3.1 3.9 EBIT (NOK in million) 99.9 90.3 583.8 Earnings per share (NOK) 0.66 0.68 4.14 Diluted
Slide 22: Consolidated statement of financial position - Group
Consolidated statement of financial position - Group NOK in million 31 Mar 2015 31 Mar 2014 31 Dec 2014 ASSETS Property, plant and equipment 582.3 519.7 613.0 Deferred tax assets 545.5 557.2 546.4 Goodwill 3,505.5 3,091.3 3,588.4 Other intangible assets 337.3 301.6 368.8 Shares in associated compani
Slide 23: Full-time employees - Group
Full-time employees - Group Net committed workforce 31 Mar 2015 31 Mar 2014 Norway 1,693 1,596 Sweden 1,880 1,827 Denmark 1,536 1,289 Finland 334 323 Baltics 580 567 Logistics 213 202 Atea Global Services 325 328 Atea ASA 8 13 Atea Group 6,569 6,145
Slide 24: Financial performance actual – Segment (NOK million)
Financial performance actual – Segment (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Norway 1,569.6 1,614.6 1,513.9 2,108.3 1,622.1 Sweden 2,137.6 2,332.6 1,764.7 2,657.9 2,324.5 Denmark 1,548.3 1,487.6 1,424.4 2,043.2 1,825.0 Finland 492.3 422.2 318.6 474.1 565.7 The Baltics
Slide 25: Financial performance proforma – Segment (NOK million)
Financial performance proforma – Segment (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Norway 1,642.3 1,684.1 1,570.4 2,192.5 1,622.1 Sweden 2,137.6 2,332.6 1,764.7 2,657.9 2,324.5 Denmark 1,672.6 1,655.4 1,558.2 2,198.2 1,825.0 Finland 509.6 422.0 318.6 474.3 565.7 The Baltic
Slide 26: Income statement actual - Group (NOK million)
Income statement actual - Group (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 3,283.1 3,030.7 3,430.4 4,467.5 3,694.6 Total software revenue 1,347.3 1,728.6 650.7 1,637.6 1,496.7 Products revenue 4,630.4 4,759.3 4,081.1 6,105.1 5,191.3 Total services rev
Slide 27: Income statement proforma - Group (NOK million)
Income statement proforma - Group (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 3,434.4 3,205.1 3,563.5 4,636.5 3,694.6 Total software revenue 1,349.7 1,728.6 650.7 1,637.6 1,496.7 Products revenue 4,784.1 4,933.7 4,214.2 6,274.1 5,191.3 Total services r
Slide 28: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 925.4 910.5 998.2 1,210.1 940.8 Total software revenue 257.2 312.3 168.3 455.2 282.9 Products revenue 1,182.6 1,222.8 1,166.4 1,665.3 1,223.7 Total services revenue 387.0 391.
Slide 29: Income statement proforma – Norway (NOK million)
Income statement proforma – Norway (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 994.8 976.7 1,051.7 1,294.2 940.8 Total software revenue 257.2 312.3 168.3 455.2 282.9 Products revenue 1,252.1 1,289.0 1,220.0 1,749.4 1,223.7 Total services revenue 390.3
Slide 30: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) (amounts in DKK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 850.0 740.5 869.4 1,130.6 976.4 Total software revenue 223.3 305.7 123.5 286.6 221.9 Products revenue 1,073.3 1,046.2 992.9 1,417.2 1,198.3 Total services revenue 310.9 306.9
Slide 31: Income statement proforma – Denmark (DKK million)
Income statement proforma – Denmark (DKK million) (amounts in DKK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 911.7 838.7 941.1 1,203.9 976.4 Total software revenue 223.3 305.7 123.5 286.6 221.9 Products revenue 1,135.0 1,144.4 1,064.6 1,490.5 1,198.3 Total services revenue 360.4 3
Slide 32: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 950.7 813.3 965.2 1,294.6 1,144.4 Total software revenue 249.8 336.9 137.3 328.5 260.0 Products revenue 1,200.5 1,150.2 1,102.5 1,623.1 1,404.4 Total services revenue 347.8 3
Slide 33: Income statement proforma – Denmark (NOK million)
Income statement proforma – Denmark (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 1,019.7 921.6 1,044.8 1,379.4 1,144.4 Total software revenue 249.8 336.9 137.3 328.5 260.0 Products revenue 1,269.5 1,258.6 1,182.1 1,707.9 1,404.4 Total services revenue 4
Slide 34: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) (amounts in SEK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 1,184.4 1,107.8 1,269.1 1,616.5 1,384.8 Total software revenue 596.3 975.8 290.7 717.0 647.8 Products revenue 1,780.7 2,083.6 1,559.9 2,333.5 2,032.6 Total services revenue 48
Slide 35: Income statement proforma – Sweden (SEK million)
Income statement proforma – Sweden (SEK million) (amounts in SEK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 1,184.4 1,107.8 1,269.1 1,616.5 1,384.8 Total software revenue 596.3 975.8 290.7 717.0 647.8 Products revenue 1,780.7 2,083.6 1,559.9 2,333.5 2,032.6 Total services revenue
Slide 36: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 1,116.1 1,003.3 1,142.8 1,494.2 1,288.7 Total software revenue 561.9 891.7 252.8 663.5 602.8 Products revenue 1,678.0 1,895.0 1,395.6 2,157.6 1,891.5 Total services revenue 45
Slide 37: Income statement proforma – Sweden (NOK million)
Income statement proforma – Sweden (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 1,116.1 1,003.3 1,142.8 1,494.2 1,288.7 Total software revenue 561.9 891.7 252.8 663.5 602.8 Products revenue 1,678.0 1,895.0 1,395.6 2,157.6 1,891.5 Total services revenue
Slide 38: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) (amounts in EUR million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 21.0 24.4 24.3 29.5 20.7 Total software revenue 32.4 21.6 9.2 19.6 39.2 Products revenue 53.4 45.9 33.5 49.2 59.9 Total services revenue 5.5 5.6 5.1 6.2 4.9 Total other incom
Slide 39: Income statement proforma – Finland (EUR million)
Income statement proforma – Finland (EUR million) (amounts in EUR million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 22.6 24.4 24.3 29.5 20.7 Total software revenue 32.7 21.6 9.2 19.6 39.2 Products revenue 55.3 45.9 33.5 49.2 59.9 Total services revenue 5.8 5.6 5.1 6.2 4.9 Total other inc
Slide 40: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 175.5 200.2 201.0 252.3 180.6 Total software revenue 270.5 176.3 75.7 169.0 342.5 Products revenue 446.0 376.5 276.7 421.3 523.1 Total services revenue 46.3 45.7 41.8 52.8 42
Slide 41: Income statement proforma – Finland (NOK million)
Income statement proforma – Finland (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 188.3 200.1 201.0 252.5 180.6 Total software revenue 273.0 176.3 75.7 169.0 342.5 Products revenue 461.3 376.3 276.7 421.5 523.1 Total services revenue 48.3 45.7 41.8 52.9
Slide 42: Income statement actual – the Baltics (EUR million)
Income statement actual – the Baltics (EUR million) (amounts in EUR million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 12.5 12.1 13.7 24.6 14.8 Total software revenue 3.9 3.3 3.1 3.5 4.0 Products revenue 16.4 15.4 16.9 28.1 18.7 Total services revenue 3.7 4.1 4.1 6.0 4.4 Total other incom
Slide 43: Income statement proforma – the Baltics (EUR million)
Income statement proforma – the Baltics (EUR million) (amounts in EUR million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 12.5 12.1 13.7 24.6 14.8 Total software revenue 3.9 3.3 3.1 3.5 4.0 Products revenue 16.4 15.4 16.9 28.1 18.7 Total services revenue 3.7 4.1 4.1 6.0 4.4 Total other inc
Slide 44: Income statement actual – the Baltics (NOK million)
Income statement actual – the Baltics (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 104.2 99.4 113.7 208.5 129.0 Total software revenue 32.7 26.7 25.7 30.3 34.6 Products revenue 136.9 126.0 139.4 238.8 163.6 Total services revenue 30.7 34.0 34.1 51.1 38.
Slide 45: Income statement proforma – the Baltics (NOK million)
Income statement proforma – the Baltics (NOK million) (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 104.2 99.4 113.7 208.5 129.0 Total software revenue 32.7 26.7 25.7 30.3 34.6 Products revenue 136.9 126.0 139.4 238.8 163.6 Total services revenue 30.7 34.0 34.1 51.1 3
Slide 46: Income statement actual – Shared services (NOK million)
Income statement actual – Shared services (NOK million)* (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 983.3 927.1 1,091.9 1,064.9 889.6 Total software revenue 2.2 2.1 1.7 2.5 2.8 Products revenue 985.6 929.2 1,093.6 1,067.4 892.3 Total services revenue 47.0 44.1 50.6
Slide 47: Income statement proforma – Shared services (NOK million)
Income statement proforma – Shared services (NOK million)* (amounts in NOK million) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Total hardware revenue 983.3 927.1 1,091.9 1,064.9 889.6 Total software revenue 2.2 2.1 1.7 2.5 2.8 Products revenue 985.6 929.2 1,093.6 1,067.4 892.3 Total services revenue 48.8 44.0 50
Slide 48: Specialists in IT infrastructure
ATCR Specialists in IT infrastructure ATCA