Atea Asa · OSL:ATEA
Atea Asa — Q2 2022 Earnings Presentation
35 slides from Atea Asa's earnings presentation, Jul 14, 2022
Slide 1: Q2 2022 Presentation
Q2 2022 Presentation July 14, 2022
Slide 2: Highlights – Q2 2022
Highlights – Q2 2022 Gross sales of NOK 12.2 billion EBIT EBIT of NOK 281 million Up 11.5% y-o-y Up 36.5% y-o-y Revenue (IFRS) of NOK 7.6 billion Net profit of NOK 222 million Up 13.4% y-o-y Up 56.5% y-o-y
Slide 3: Income Statement – Q2 2022
Income Statement – Q2 2022 CURRENCY: MNOK Q2 2022 Q2 2021 Growth Comments: Hardware 5,324 4,690 13.5% Software 4,739 4,273 10.9% • Organic growth in constant currency: Services 2,117 1,966 7.7% - Gross sales: 13.8% - Revenue (IFRS): 15.4% Gross sales 12,180 10,928 11.5% • Growth is driven by strong
Slide 4: Business unit performance – Q2 2022
Business unit performance – Q2 2022 • Very strong sales growth in all countries, except Denmark • Growth in Denmark is impacted by last year’s comparable and seasonality in the Danish business - Atea Denmark had very high sales growth in Q2 2021 - EBIT in Denmark is seasonally lowest in Q2 % Gross s
Slide 5: Cash flow from operations – Q2 2022
Cash flow from operations – Q2 2022 • Cash flow from operations of NOK -507 million in Q2 2022, due to an increase in Atea’s working capital balance during a period of extraordinary supply constraints in the electronics industry • Atea is now reducing inventory levels as supply constraints ease – th
Slide 6: Net financial position
Net CURRENCY: MNOK 30-Jun 2022 30-Jun 2021 financial Interest-bearing liabilities -2,081 -533 position Cash and cash equivavlents 905 938 Net financial position* -1,176 405 Net financial position* of NOK -1,176 million EBITDA - rolling 4 Q* 1,739 1,618 Net debt / EBITDA ratio of 0.7 Net debt / EBITD
Slide 7: We're Entering the Digital-first World
We’re Entering the Digital-first World Digital is now a permanent, yet dynamic fixture in our world. Individuals in schools, companies, and governments are always asking whether there is some digital-based capability or enhancement that could improve lives and desired outcomes. To thrive in a digita
Slide 8: Where is your organization in adopting a digital-first strategy?
Which of the following statements best describe where your organization is when it comes to adopting a digital-first strategy? 38% 33% 15% 13% 3% Digital-first Digital-first Digital-first Digital-first Digital-first Resistors Laggards Responders Accelerators Pioneers We see no need to Disruption tri
Slide 9: Nordic IT spending
Nordic IT spending IDC Forecast: May 2022 vs. February 2022 6.7% 6.4% 6.5% 6.4% 5.9% 5.3% 5.4% 4.7% 2022 2023 2024 2025 February May
Slide 10: IT spending as percentage of total budget
IT spending as percentage of total budget 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 0 - 2.5% 2.6 - 5% 5 - 7.5% > 7.5% Don't know Public Sector Private Sector
Slide 11: Nordic services market - 2021
Nordic services market - 2021 Growth Market Share Digital Vendor Market Strength Digital Services Ecosystem 2020 - 2021 IT Services Infrastructure TietoEVRY 0.2% 10.2% Accenture 15.6% 5.8% ATEA 3.0% 5.3% CGI 2.9% 4.7% IBM -10.1% 4.5% Breaking up Capgemini 6.4% 2.8% Tata Consultancy Services 4.5% 2.4
Slide 12: Digitalization is driving long-term demand
Digitalization is driving long-term demand Despite rising macro worries, customer demand for technology have never been higher, as businesses become increasingly dependent on the digital and prioritize technology investments. The biggest frustration is how to meet this demand in the face of ongoing
Slide 13: Vendor delivery lead times
Vendor delivery lead times PC Mobile and tablets • Pre-supply chain problems – 25 to 30 days • Pre-supply chain problems – 15 to 30 days • During pandemic – 150 to 180 days • During pandemic – 90 to 160 days • Q2 2022 – 45 to 60 days • Q2 2022 – 45 to 60 days Server and storage Networking • Pre-supp
Slide 14: Summary – 1H 2022
Summary – 1H 2022 Gross sales of NOK 22.3 billion EBIT EBIT of NOK 464 million Up 6.4% y-o-y Up 21.3% y-o-y Revenue (IFRS) of NOK 14.5 billion Net profit of NOK 353 million Up 4.5% y-o-y Up 30.9% y-o-y
Slide 15: We build the future with IT.
We build the future with IT.
Slide 16: Q2 2022 Presentation Fact pack
Q2 2022 Presentation Fact pack July 14, 2022
Slide 17: Highlights – Group
Highlights – Group Q2 Q2 H1 H1 Full year NOK in million 2022 2021 2022 2021 2021 Gross sales* 12,180 10,928 22,265 20,927 41,316 Revenue (IFRS)* 7,590 6,692 14,496 13,878 28,491 Gross profit 2,212 2,089 4,303 4,173 8,446 EBIT 281 206 464 382 1,046 EBIT margin (%) 3.7% 3.1% 3.2% 2.8% 3.7% Net profit
Slide 18: Consolidated statement of financial position – Group
Consolidated statement of financial position – Group NOK in million 30 Jun 2022 30 Jun 2021 31 Dec 2021 ASSETS Property, plant and equipment 499 510 493 Right-of-use assets 1,227 1,217 1,200 Deferred tax assets 257 293 276 Goodwill 4,077 4,000 3,942 Other intangible assets 389 301 328 Long-term subl
Slide 19: Full-time employees – Group
Full-time employees – Group FTEs, end of period 30 Jun 2022 30 Jun 2021 Norway 1,742 1,670 Sweden 2,613 2,510 Denmark 1,448 1,379 Finland 513 430 Baltics 702 651 Logistics 297 257 Atea Global Services 536 462 Atea ASA 9 10 AppXite 47 47 Atea Group 7,908 7,416
Slide 20: Financial performance actual – Segment
Financial performance actual – Segment NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Norway 1,721.0 1,772.3 1,682.9 2,079.0 1,746.9 1,926.7 Sweden 2,582.4 2,607.1 2,618.4 3,259.9 2,672.4 3,021.6 Denmark 2,054.2 1,574.9 1,406.4 1,738.9 1,622.0 1,640.9 Finland 584.9 559.4 552.3 615.7 602.9 693.1
Slide 21: Financial performance pro forma – Segment
Financial performance pro forma – Segment NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Norway 1,721.0 1,772.3 1,682.9 2,079.0 1,746.9 1,926.7 Sweden 2,582.4 2,607.1 2,618.4 3,259.9 2,672.4 3,021.6 Denmark 2,054.2 1,574.9 1,406.4 1,738.9 1,622.0 1,640.9 Finland 592.3 567.6 560.3 626.9 614.9 693
Slide 22: Income statement actual – Group (NOK million)
Income statement actual – Group (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Hardware 5,166.3 4,689.5 4,655.2 5,701.3 4,809.7 5,324.4 Software 2,912.3 4,273.0 2,074.0 3,867.6 3,230.7 4,738.6 Product sales 8,078.6 8,962.6 6,729.2 9,568.9 8,040.4 10,063.0 Services sales 1,920.2 1,9
Slide 23: Income statement pro forma – Group (NOK million)
Income statement pro forma – Group (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Hardware 5,166.3 4,689.5 4,655.2 5,701.3 4,809.7 5,324.4 Software 2,912.3 4,273.0 2,074.0 3,867.6 3,230.7 4,738.6 Product sales 8,078.6 8,962.6 6,729.2 9,568.9 8,040.4 10,063.0 Services sales 1,927.6
Slide 24: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Product sales 1,684.2 1,826.5 1,673.5 2,448.0 1,994.7 2,260.8 Services sales 564.3 551.1 519.6 605.2 549.6 566.7 Gross sales 2,248.5 2,377.6 2,193.1 3,053.2 2,544.3 2,827.5 Product margin (%) 11.5% 11.9
Slide 25: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) SEK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Product sales 3,076.1 3,959.8 2,782.8 4,196.1 3,599.3 4,619.0 Services sales 755.4 793.3 636.1 937.3 820.7 880.1 Gross sales 3,831.5 4,753.1 3,418.8 5,133.4 4,420.0 5,499.1 Product margin (%) 11.6% 9.4%
Slide 26: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Product sales 3,120.7 3,949.0 2,822.6 4,149.1 3,412.1 4,415.0 Services sales 766.3 789.7 645.0 926.9 778.0 841.8 Gross sales 3,887.1 4,738.7 3,467.6 5,076.0 4,190.2 5,256.8 Product margin (%) 11.6% 9.3%
Slide 27: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) DKK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Product sales 1,497.1 1,724.0 942.3 1,427.3 1,237.6 1,707.4 Services sales 320.8 376.9 346.8 402.1 412.5 373.8 Gross sales 1,817.9 2,100.9 1,289.1 1,829.4 1,650.1 2,081.2 Product margin (%) 8.1% 6.9% 1
Slide 28: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Product sales 2,066.2 2,341.6 1,317.7 1,914.7 1,652.0 2,297.4 Services sales 442.7 512.1 481.7 540.5 550.7 503.9 Gross sales 2,508.9 2,853.6 1,799.4 2,455.3 2,202.7 2,801.3 Product margin (%) 8.1% 6.9%
Slide 29: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) EUR in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Product sales 97.0 65.2 66.9 70.2 78.3 79.7 Services sales 9.7 9.8 9.4 11.6 8.9 12.0 Gross sales 106.7 74.9 76.3 81.9 87.2 91.7 Product margin (%) 8.4% 11.5% 9.8% 10.9% 10.2% 10.9% Services margin (%)
Slide 30: Income statement pro forma – Finland (EUR million)
Income statement pro forma – Finland (EUR million) EUR in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Product sales 97.0 65.2 66.9 70.2 78.3 79.7 Services sales 10.4 10.6 10.1 12.8 10.1 12.0 Gross sales 107.4 75.7 77.1 83.0 88.4 91.7 Product margin (%) 8.4% 11.5% 9.8% 10.9% 10.2% 10.9% Services marg
Slide 31: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Product sales 995.2 654.7 692.5 699.4 777.9 799.0 Services sales 99.8 98.6 96.9 116.5 88.0 120.2 Gross sales 1,095.0 753.3 789.4 815.9 865.9 919.2 Product margin (%) 8.4% 11.5% 9.8% 10.9% 10.2% 10.9% S
Slide 32: Income statement pro forma – Finland (NOK million)
Income statement pro forma – Finland (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Product sales 995.2 654.7 692.5 699.4 777.9 799.0 Services sales 107.2 106.8 104.8 127.7 100.0 120.2 Gross sales 1,102.4 761.5 797.4 827.0 877.9 919.3 Product margin (%) 8.4% 11.5% 9.8% 10.9% 10.2%
Slide 33: Income statement actual – Baltic (EUR million)
Income statement actual – Baltic (EUR million) EUR in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Product sales 20.3 19.8 21.1 34.0 21.0 24.8 Services sales 9.4 9.9 10.5 13.1 10.9 11.0 Gross sales 29.7 29.7 31.6 47.2 31.8 35.8 Product margin (%) 10.1% 12.0% 12.5% 13.0% 13.3% 12.6% Services margin (%
Slide 34: Income statement actual – Baltic (NOK million)
Income statement actual – Baltic (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Product sales 208.7 199.6 218.2 342.0 208.3 248.3 Services sales 96.2 99.7 108.2 131.6 107.8 110.5 Gross sales 304.9 299.2 326.4 473.6 316.1 358.8 Product margin (%) 10.1% 12.1% 12.4% 13.0% 13.3% 12.6%
Slide 35: Income statement actual – Group Shared Services (NOK million)
Income statement actual – Group Shared Services* (NOK million) NOK in million Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Product sales 1,579.3 1,393.1 1,760.8 2,035.9 1,900.3 2,031.8 Services sales 139.7 142.6 151.9 159.2 194.6 198.3 Gross sales 1,719.0 1,535.7 1,912.7 2,195.1 2,095.0 2,230.1 Product margi