Slide 1: Itera Q3 2021
TTERA ITERA
Slide 2: Highlights, Business Review, Financial Review, Outlook, Q&A
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 2
Slide 3: Highlights Q3 2021
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Slide 4: Q3 in brief
Q3 in brief 27% Attractive market driven by Leveraging our 15 MNOK investments Largest provider of services to Cognite Successful summer internship projects sustainability and in world class and Aize and gold for 27 master's Growth in core digitalisation in all Delivery Factory at sponsor of Ignite
Slide 5: Key figures core digital business
Key figures core digital business 27% 21% 10.4% Organic revenue Growth in number Operating margin growth of employees Revenues Employees EBIT margin 2019 2020 2021 % NOK million End of period 2019 2020 2021 2019 2020 2021 170 650 18% 151 16% 15.3 % 14.8 % 144 589 150 600 139 14% 539 550 524 12% 130
Slide 6: Business review
02 Business review 6
Slide 7: Specialist in creating sustainable digital business
Specialist in creating sustainable digital business At Itera, we share a commitment to make a positive difference in the world. As a society, the most urgent challenge we face is how to live and work sustainably REYKJAVIK UNDERSTAND BERGEN OSLO THE CUSTOMER STAVANGER FREDRIKSTAD STOCKHOLM COPENHAGEN
Slide 8: We are following our customers around the world
We are following our customers around the world We help international customers and partners across borders through our Delivery Factory at Scale and Cloud Centre of Excellence to transform into sustainable business. The Nordics is often positioned as a digital and sustainable front-runner, showing
Slide 9: Delivery Factory at Scale for data-driven businesses
Delivery Factory at Scale for data-driven businesses Innovation Faster business innovation through autonomous teams and CUSTOMER BUSINESS & DIGITAL STRATEGY adoption of cloud services Speed/Agility Business agility and reduced CLOUD CUSTOMER ANALYTICS & time-to-market through efficient MIGRATION PRO
Slide 10: Go-to-market model for main segments
Go-to-market model for main segments B2C B2B BANKING, FINANCE & INSURANCE HEAVY ASSETS & PROCESS INDUSTRIES ASSET SAFETY & BUSINESS DATA-DRIVEN DIGITAL OPTIMALI- SUSTAINA- TRANSFOR- CUSTOMER MAINTENANCE WORKER SATION BILITY MATION JOURNEY & DATA & ANALYTICS …. ANTI MONEY LAUNDERING SAFER PAYMENTS AU
Slide 11: Creating full end-to-end understanding for value creation
Creating full end-to-end understanding for value creation Business Agenda We operate Industry Focus Conversations Business & Product Agenda here! Digital Agenda Business Outcome Conversations Digital Agenda & Potential Disruption Focus Initiative Digital Initiative Digital Initiative Digital Initiat
Slide 12: Itera and Aize join forces towards the 4th industrial revolution
Itera and Aize join forces towards the 4th industrial revolution
Slide 13: Itera was gold sponsor at Ignite 2021
Itera was gold sponsor at Ignite 2021 Ignite is the world's leading industrial conference hosted by Cognite with more than 10.000 participants. Itera played an important role in the conference and had, among other contributions, two speakers on stage. The conference gathers leaders from all over the
Slide 14: Data-driven business report: using data as a strategic asset
Data-driven business report: using data as a strategic asset Itera launched a report where we examined how Norwegian organisations use data as a strategic asset, which practices hallmark those who succeed and how to practically enable data-driven business at scale. Our findings show that many busine
Slide 15: Market report for the Norwegian energy market
Market report for the Norwegian energy market Every six months, Itera prepares a comprehensive report covering the Norwegian energy market together with Thema Consulting. The report covers the most essential parts of the market dynamic: market development, product overview and changes, customer pref
Slide 16: Sector Alarm teams up with Itera to increase scalability
Sector Alarm teams up with Itera to increase scalability Sector Alarm is one of Europe’s leading safety providers with 600,000 customers. Providing excellent customer service is extremely important to enable their consistent 95% customer satisfaction rating. Through a well conducted RFP process, Sec
Slide 17: Summer internships
Summer internships During the summer, 27 master’s students were engaged in four customer projects at Itera Norway The students were divided into multi-disciplined teams of business consultants, developers, UX specialists and testers. New technology was applied for a wide range of innovative solution
Slide 18: Disrupting the global self-storage industry through technology
Disrupting the global self-storage industry through technology Summer internship for ADD+SPACE ACQUIRING PEOPLE PRODUCTS SERVICES ADD+ SPACE PARTNERSHIPS SPACE TRANSPORT The overall ambition The solution will be US market launch Q1 is to build the biggest the world’s first 2022. Offensive self-stora
Slide 19: Order intake
Order intake Order intake from selected new and existing customers Book-to-bill ratio*) of 0.9 in Q3 for core digital business and 1.1 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 19
Slide 20: Customer development
Customer development Revenue customers split (in MNOK) ▪ New business 100% 90% 17 20 20 16 11 12 18 23 21 ▪ Existing customers accounted for 85.8% 80% 70% (91.8%) of revenues in Q3 2021 60% 50% ▪ New customers won over the past year 40% 111 126 141 133 126 155 139 138 127 generated revenues of NOK 2
Slide 21: Skilled and innovative employees in core digital business
Skilled and innovative employees in core digital business Number of employees end of quarter by shore ▪ 589 employees at the end of the 700 55 % 600 53 % quarter 500 400 51 % ▪ Up by 50 in the quarter 300 49 % 47 % ▪ Up by 103 (43) last twelve months 200 100 45 % 0 43 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 22: Financial review
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Slide 23: Financial reporting 2021
Financial reporting 2021 ▪ Given the sunsetting of the data centre operations, focus for our financial reporting is on the core digital business, including the investment in the Cloud Centre of Excellence. 23
Slide 24: Key financials core digital business
Key financials core digital business 2021 2020 change change ▪ Strong growth of 27% fuelled by Amounts in NOK million 7-9 7-9 % some major new accounts and more Sales revenue 138.9 109.7 29.3 26.7 % subcontractors Cost of sales 10.0 7.9 2.0 25.4 % Gross profit 129.0 101.7 27.3 26.8 % ▪ Personnel exp
Slide 25: Revenue and earnings development
Revenue and earnings development Quarterly Revenue and EBIT margin* ▪ Strong sales growth year over year 180 18% ▪ Q3 margins seasonally lower due to MNOK 160 16% vacations and additionally by high 140 14% recruitment 120 12% 100 10% ▪ Quarterly figures are impacted by 80 8% number of working days n
Slide 26: Subscription revenue from data centre operations
Subscription revenue from data centre operations MNOK 25 20 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 19 19 19 20 20 20 20 21 21 21 21 22 ▪ Subscription revenue from data centre operations will continue to drop as customers are migrated to cloud or exited ▪ Freed up resources will be avail
Slide 27: Segment reporting
Segment reporting 7-9 2021 7-9 2020 Growth Year-to-date growth Core Data Core Data digital centre digital centre Core Core business operations business operations digital Data centre digital Data centre Amounts in NOK million (94%) (6%) Total (80%) (20%) Total business operations Total business oper
Slide 28: Statement of cash flow
Statement of cash flow 2021 2020 2021 2020 2020 12 month rolling NOK Million 7-9 7-9 1-9 1-9 FY cash flow from operations (NOK Million) Cash flow from operations (EBITDA) 17.5 24.6 67.3 79.7 108.9 107 Change in balance sheet items (1.8) (8.2) (26.3) (16.2) (9.7) Net cash flow from operating activiti
Slide 29: Dividend and own shares
Dividend and own shares ▪ An supplementary dividend of NOK 0.10 per share based on 2020 results has been approved by the Board for payment in December. Total dividend for 2020 is NOK 0.35 per share. ▪ Share price was NOK 15.7 at the end of Q3 2021, an increase of 13% (17% incl. dividends) from NOK 1
Slide 30: Statement of financial position
Statement of financial position Assets Equity and Liabilities ▪ Equity ratio of 17% 300 (24%) per 30 September 2021 250 38 ▪ 20% excl. IFRS 16 200 Right-of-use assets 30 Leasing 54 Non-current MNOK Current 152 ▪ Cash balance of MNOK 150 assets 62 liabilities 162 23 (MNOK 58) 100 90 Receivables and ▪
Slide 31: Outlook
04 Outlook 31
Slide 32: Outlook
Outlook Attractive market Strong position Core digital business Transforming own Regional expansion driven by through its end-to- will continue to grow data centres to the in the Nordics for sustainability and end services, world- at full speed. cloud with short-term proximity to more digitalisation
Slide 33: Q&A
05 Q&A 33
Slide 34: Make a difference!
Slide 35: Top 20 shareholders
Top 20 shareholders No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS* 30.01 NOR 24 663 031 2 OP CAPITAL AS 5.54 NOR 4 551 083 3 GIP AS 5.05 NOR 4 153 420 4 EIKESTAD AS 4.20 NOR 3 450 000 5 SEPTIM CONSULTING AS 3.57 NOR 2 930 000 6 BOINVESTERING AS 3.27 NOR 2 686 968 7 DnB NOR Bank ASA* 3.16 NOR 2