Slide 1: Interim Report
INTERIM REPORT Wale a difference
Slide 2: Agenda
Agenda Q1 REPORT 2024 ITERA 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 Q1 2024
Q1 REPORT 2024 ITERA 1 Highlights Q1 2024
Slide 4: Q1 in brief
Q1 REPORT 2024 ITERA Q1 in brief Market Cloud, data and AI New product Order intake -1% The pace of spending and the overall business landscape have changed, . Strong demand in the green transition and areas like cloud Launching of Itera’s AI platform, named Sapience to provide people Seasonal varia
Slide 5: Key figures
Q1 REPORT 2024 ITERA Key figures Q1 Q1 Q1 -1% 1% 8.4% Organic revenue Growth in number of EBIT margin growth employees last 12 months
Slide 6: Business review
Q1 REPORT 2024 ITERA 2 Business review
Slide 7: Business Review: Positioned to accelerate the digital transformation
ANNUAL REPORT BUSINESS REVIEW Positioned to accelerate the digital transformation
Slide 8: We are specialists in sustainable digital transformation
Q1 REPORT 2024 ITERA We are specialists in sustainable digital transformation The Nordics is often positioned as digital Nordic origin. and sustainable front-runner that show Global reach. the way globally. We are growing together with international customers and Reykjavik partners based on our ONE
Slide 9: Our steady growth organic model
Q1 REPORT 2024 ITERA Our steady growth organic model Packaged offerings and Speed, industrialized reusability and services subscription Customer-centric We have built a strong international ONE and selected Itera operating model and will see more of industries divergence in the linearity between hea
Slide 10: Our priorities in 2024
Q1 REPORT 2024 ITERA Our priorities in 2024 1 Strengthen demand 2 Leverage Digital 3 Explore and 4 Build on our strong generation through Factory and cloud capitalize on growth position to grow customer squads journeys opportunities in data, outside Norway Low-Code and AI Being smart in cost discipl
Slide 11: Hello Sapience!
Q1 REPORT 2024 ITERA Hello Sapience! Itera has launched its own Generative AI platform, “Sapience” which provides every employee with Generative AI in a safe, secure and efficient way. As a platform, the bounds of what value we can create is only limited by our collective imagination. Sapience is th
Slide 12: Hello Sapience!
Q1 REPORT 2024 ITERA Hello Sapience! Itera has launched its own Generative AI platform, “Sapience” which provides every employee with Generative AI in a safe, secure and efficient way. As a platform, the bounds of what value we can create is only limited by our collective imagination. Sapience is th
Slide 13: Digital and Business Transformation
Q1 REPORT 2024 ITERA Digital and Business Transformation Fusion Technology fully business Business value integrated Innovation Differentiator Product Streamlined cloud product development Legacy+ Platform Legacy IT stagnant, Operationalized On-Premise, scattered cloud cloud Business not in business
Slide 14: Digital/AI transformation + Energy = The new power couple
Q1 REPORT 2024 ITERA Digital/AI transformation + Energy = The new power couple Climate-neutral Green Coordinated efforts AI technologies economy is digitalization are needed to can help reduce possible by green as a driver for create a green CO2 emissions technologies sustainability digital economy
Slide 15: Digital Factory at Scale: Doing more with less
Q1 REPORT 2024 ITERA Digital Factory at Scale: Doing more with less Organizations with Developer Velocity in the top ENERGY BUSINESS & DIGITAL STRATEGY quartile achieve1: 4-5 55% DIGITAL PRODUCT 1 DIGITAL PRODUCT 2 ANALYTICS & DATAOPS WORKLOADS times faster higher INDUSTRY STANDARDS revenue growth A
Slide 16: Accelerating Digital Transformation in the Energy industry
Q1 REPORT 2024 ITERA Accelerating Digital Transformation in the Energy industry Capitalizing on the energy transition, Itera leverages digital solutions through cloud, data and AI. 80% Growth 2022-2023 Eviny Å Entelios Vattenfall Capture Energy Enduring partnership with Eviny, Awarded the next phase
Slide 17: Generative AI tools can increase cloud ROI by 75-110%
Q1 REPORT 2024 ITERA Generative AI tools can increase cloud ROI by 75-110% ENHANCED VALUE GENERATION KEY TOPICS Incremental generative AI platform 30-40% increase in cloud foundations (establishing infrastructure investment -15% to -20% foundational LLM models/adopting generative AI solutions, new r
Slide 18: New agreement to transform an Icelandic customer
Q1 REPORT 2024 ITERA New agreement to transform an Icelandic customer Cloud & Application Services celebrated a key victory by signing an agreement with Wise, an Icelandic company specializing in comprehensive business software solutions. Wise's offerings are meticulously crafted to empower organiza
Slide 19: The power of AI in testing
Q1 REPORT 2024 ITERA The power of AI in testing Itera sent some of our top talented QA experts on tour. With a breakfast seminar titled “Quality matters: Improve time to market with testing”, they demonstrated the future of Quality Assurance! One of the reason for our successful high quality softwar
Slide 20: Rebuilding Ukraine, the digital transformation Tiger
Q1 REPORT 2024 ITERA Rebuilding Ukraine, the digital transformation Tiger The Ukrainian IT Ukraine is ahead Ukraine is becoming IT is one of five sector generates the of Estonia in the the new green strategic pillars in 2nd largest export digitalization of energy and digital rebuilding Ukraine incom
Slide 21: Housing for Ukraine
Q1 REPORT 2024 ITERA ITERA Housing for Ukraine A framework to efficiently support the rebuilding of the housing and infrastructure sector in Ukraine. An initative by Moelven Byggmodul AS and Itera ASA
Slide 22: Order intake
Q1 REPORT 2024 ITERA Order intake Order intake from selected new and existing customers. Book-to-bill ratio*) of 1.0 in Q1 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 23: Customer mix
Q1 REPORT 2024 ITERA Customer mix Revenue customers split (in MNOK) Share existing customers High visibility 94.7% (87.0%) 83% (84%) of revenues in Q1 2024 Top 30 customers, share of revenue New customers High customer concentration signifies 12.2 (29.8) § § Strategic relationships Full range of ser
Slide 24: Skilled and innovative employees
Q1 REPORT 2024 ITERA Skilled and innovative Number of employees end of quarter by shore employees 736 employees at the end of the quarter Up by 5 (58) last twelve months Nearshore ratio of 51% (53%) Our distributed delivery model of onshore and nearshore consultants are increasing our price competit
Slide 25: Financial review
Q1 REPORT 2024 ITERA 3 Financial review
Slide 26: Key financials
Q1 REPORT 2024 ITERA Key financials § Flat organic revenue (-1%) 2024 2023 Change 2023 NOK Million 1-3 1-3 % FY § Personnel expenses driven by Operating revenue 228.5 230.3 -1% 871.6 FTE growth, NOK depreciation, Gross profit 212.1 217.1 -2% 813.7 salary growth and 1.5m one-off Personnel expenses 16
Slide 27: Business optimization program
Q1 REPORT 2024 ITERA Business optimization program Itera has implemented a business optimization program with the target of improving EBIT margin by 1.2-1.6 points § Strict cost control has brought spending on other Operating Expenses (OPEX) down in the last two quarters § In Q1 of 2024, year-over-y
Slide 28: Revenue and earnings development
Q1 REPORT 2024 ITERA Revenue and earnings development Strong sales growth year over year with 2-year CAGR of 19.4% and an average of 9.0% EBIT MNOK Margin margin Opportunities for margin expansion § Normalization of utilization § Reaching critical business volume Cloud & Application Services § Conve
Slide 29: Statement of cash flow
Q1 REPORT 2024 ITERA Statement of cash flow 12 month rolling cash flow 2024 2023 2023 from operations (NOK Million) NOK Million 1-3 1-3 FY EBITDA 29.2 40.8 110.7 Change in balance sheet items (36.6) (33.1) (17.3) Net cash flow from operating activities (7.4) 7.7 93.4 Net cash flow from investment ac
Slide 30: Dividend and own shares
Q1 REPORT 2024 ITERA Dividend and own shares § An ordinary dividend of NOK 0.40 per share Allocations to shareholders for 2023 proposed + authorization for supplementary dividend later § Share price was NOK 11.90 at the end of March 2024, a change of 0% incl. dividends from NOK 12.60 at the end of M
Slide 31: Statement of financial position
Q1 REPORT 2024 ITERA Statement of financial position § Equity ratio of 20% (29%) Assets Equity and Liabilities per 31 Dec 2023 – 25% (32%) excl. IFRS 16 Leasing Right-of-use assets § Right-of-use assets up MNOK 46 from new facility Non-current agreements assets Current liabilities § Cash balance of
Slide 32: Outlook
Q1 REPORT 2024 ITERA 4 Outlook
Slide 33: Outlook
Q1 REPORT 2024 ITERA Outlook Underlying strong Continued attention Readiness to migrate Connecting Ukraine Profitable growth demand for digital to business and operate larger and the Nordics to and cash flow are transformation optimization to scale cloud enable the green key focus areas. through exi
Slide 34: Q&A
Q1 REPORT 2024 ITERA 5 Q&A
Slide 35: Top 20 shareholders
Q1 REPORT 2024 ITERA Top 20 shareholders No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS 33.29 NOR 27 363 031 2 OP CAPITAL AS 5.64 NOR 4 635 242 3 GIP AS 5.23 NOR 4 300 000 4 SEPTIM CONSULTING AS 4.83 NOR 3 970 874 5 BOINVESTERING AS 3.59 NOR 2 947 862 6 GAMST INVEST AS 3.15 NOR 2 590 070 7 DZ PR
Slide 36: We stand with Ukraine
We stand with Ukraine