Itera Asa · OSL:ITERA
Itera Asa — Q4 2020 Earnings Presentation
36 slides from Itera Asa's earnings presentation, 2021
Slide 1: Q4 Interim Report 2020
Q4 INTERIM REPORT 2020 1 Itera | Q4 2020
Slide 2: Presenters and Agenda
PRESENTERS AND AGENDA Arne Mjøs Highlights of the quarter Chief Executive Officer Business review Bent Hammer Financial review Chief Financial Officer Outlook 2 Itera | Q4 2020
Slide 3: Highlights of the Fourth Quarter
HIGHLIGHTS OF THE FOURTH QUARTER High growth and Total business Business Grow people Cash & Dividend profitability in Revenue NOK Accelerating in Named Top 10 Strong 12 month core digital 168.2 (146.0) B2B market European Digital rolling cash flow business (81% million, up by segments Banking soluti
Slide 4: Highlights of the Fourth Quarter
HIGHLIGHTS OF THE FOURTH QUARTER Core digital business: Total business: • Gross profit growth of 14.0% (12.1% YTD) • Gross profit growth of 17.5% (12.5% YTD) • EBIT margin of 10.0% (11.8% YTD) • Adjusted EBIT margin of 10.0% (10.7% YTD) Revenues EBIT, adjusted NOK million NOK million 162 168 143 151
Slide 5: Business review
Business review 5 Itera | Q4 2020
Slide 6: 2020 Highlights
2020 HIGHLIGHTS Top 25 in innovation 5 Top 4 Global & Top 1 Europe in 10% new customers Sustainability is a core part of our 11% years in a row Project and industries business model Management Growth in core digital business Strengthen core Strong talent Increasing Strong digital business attraction
Slide 7: Crisis Impact on Digital Business Transformation
CRISIS IMPACT ON DIGITAL BUSINESS TRANSFORMATION 65% accelerate digital business transformation 35% 29% 20% 7% 5% 2% 1% Not significant Slowed, Continuing Focus shifted Same focus Shifted focus Other part of plan reduced, unchanged same pace accelerated accelerated delayed Source: Gartner Symposium
Slide 8: Towards Industrial Digitalisation
TOWARDS INDUSTRIAL DIGITALISATION DIGITAL TRANSFORMATION INDUSTRIAL DIGITALISATION B2C B2B Digital transformation has been underway for 10- Industry at the very beginning of its digitalisation 15 years journey Medium/high digital maturity Low digital maturity, increasing sense of urgency Steady grow
Slide 9: Digitalisation = Sustainability
DIGITALISATION = SUSTAINABILITY Social Municipal Command & Factory Control Center Optimisation Economy SUSTAINABLE Environment DIGITAL BUSINESSES Smart Logistics Grid Optimisation Responsive Store Building Traffic Flow Optimisation Optimisation Home Energy Management Comms Network Optimisation Traff
Slide 10: The Specialist in Creating Sustainable Digital Business
THE SPECIALIST IN CREATING WE UNDERSTAND THE USER SUSTAINABLE New use cases DIGITAL BUSINESS WE UNDERSTAND THE WE UNDERSTAND THE BUSINESS TECHNOLOGY Data centric Artificial intelligence 10 Itera | Q4 2020
Slide 11: Strong International Traction
STRONG INTERNATIONAL TRACTION TOP 25 MOST TOP 1 IN THE WORLD IN TOP 1 IN EUROPE TOP 10 EUROPEAN INNOVATIVE COMPANY CROSS-BORDER WITHIN PROJECT DIGITAL BANKING IN NORWAY DELIVERY MANAGEMENT SOLUTION PROVIDER Award by Innovasjonsmagasinet Award by the Global Sourcing Award by the Global PMO Alliance i
Slide 12: Nordic Origin with an International Approach
NORDIC ORIGIN WITH AN INTERNATIONAL APPROACH • The Nordics is often positioned as digital and sustainable front- runners that gives us an attractive position for international customers • We are growing together with international customers and partners based on our ONE Itera model across borders •
Slide 13: Revitalising Our Brand
REVITALISING OUR BRAND We are launching a new revitalised brand in Q1: • more professional outlook COMPLEX HUMAN • stronger international CHALLENGES SOLUTIONS position • high value partner 13 Itera | Q4 2020
Slide 14: Transforming the Energy Sector
SMART ENERGY TRANSFORMING THE ENERGY SECTOR RENEWABLE RENEWABLE POWER POWER GENERATION GENERATION NEW ENERGY POWER GRID PROSUMER RETAIL MIDSTREAM Renewable power Power generation generation desentralised flexibility and grid balancing Renewable power generation Data- driven Data-driven Smart Smart i
Slide 15: Towards AI Powered Well Exploration
SMART ENERGY TOWARDS AI POWERED WELL EXPLORATION • The Released Well Initiative is an example of digital transformation of Norwegian Continental Shelf where large volume of historical drilling cutting samples from released wells digital are made available to the public • About 1600 wells until now •
Slide 16: Realise the Future of Energy
SMART ENERGY REALISE THE FUTURE OF ENERGY INSIGHTS: MARKEDSRAPPORT STRØM MARKET ACTIVITIES KEY NOTES & PODCASTS • Power market analysis report developed in • New customer meetings • Cognite Ignite Conferance partnership with Thema Consulting • Seminars and webinars • Cognite and Itera Utilities Webi
Slide 17: High Value Creation Delivery
HIGH VALUE CREATION DELIVERY • To succeed in digital transformation, our customers reorganise themselves into a Process-based Delivery Service-based Delivery Product-based Delivery product-based structure which is cross- functional and orchistrated around Process Service Value customer problems to i
Slide 18: Towards Delivery at Scale
TOWARDS DELIVERY AT SCALE • Our Delivery Factory at Scale consists of a full range of services and capabilities as Customer 1 Customer N Products «as a Service» ONE Itera across borders • Accelerate digitalisation • Total experience end-to-end • New revenue models, i.e. subscription- based Partners
Slide 19: Own Data Center Transition
OWN DATA CENTER TRANSITION 1% 7% • By the end of 2020, almost 2/3 of the 19 % business volume of our data centre operations had been successfully migrated to the cloud by customers. 99 % 93 % • Most of the remaining customers will be 81 % engaged to move to the cloud by end of 2021 Q4-2020 Q1-2021 Q
Slide 20: Order Intake from New and Existing Customers
ORDER Order INTAKE intake FROM from selected NEW new AND and existing EXISTING CUSTOMERS customers ORDER INTAKE Book-to-bill ratio*) of 1.6 in Q4 for core digital business 20 Itera | Q4 2020 *) The book-to-bill ratio is the ratio of orders received to the amount of revenue for a specific period for
Slide 21: Customer Development
CUSTOMER DEVELOPMENT Revenue customers split (in MNOK) • New business 100% 90% 7 14 18 17 20 20 16 11 12 • Existing customers accounted for 92.8% 80% 70% (86.3%) of revenues in Q4 2020 60% 50% • New customers won over the past year 134 129 134 127 156 40% 126 111 126 142 30% generated revenues of NO
Slide 22: Skilled and Innovative Employees
SKILLED AND INNOVATIVE EMPLOYEES Number of employees end of quarter by shore 600 50% • 569 employees at the end of the quarter 500 48% • Up 13 from last quarter and 57 from same 400 46% period last year 300 44% • 7 quarters of sequential growth 200 42% 100 40% 0 38% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 23: Financial review
Financial review 23 Itera | Q4 2020
Slide 24: Key Figures
2020 2019 Change 2020 2019 Change NOK Million 10-12 10-12 % 1-12 1-12 % Sales revenue 168.2 146.0 15 % 619.1 560.3 10 % Gross profit 149.5 127.2 18 % 543.6 483.0 13 % Personnel expenses 110.5 87.9 26 % 392.4 348.3 13 % Other opex 13.6 11.3 20 % 46.0 42.7 8% EBITDA 29.2 28.0 4% 108.9 92.0 18 % EBITDA
Slide 25: Business Segments
Revenue growth Q4 YTD Core digital business 14.7 % 10.8 % Data centre transformation 17.5 % 9.0 % Total 15.2 % 10.5 % Share of revenue Gross profit growth Q4 YTD Core digital business 14.0 % 12.1 % 19 % Data centre transformation 41.9 % 15.3 % Data centre transformation Total 17.5 % 12.5 % Core digi
Slide 26: Revenue and Earnings Development
REVENUE AND EARNINGS DEVELOPMENT Quarterly Revenue and EBIT margin Last 12 months Revenue and EBIT margin 200 16% MNOK MNOK 800 16% 175 14% 700 14% 150 12% 600 12% 125 10% 500 10% 100 8% 400 8% 75 6% 300 6% 50 4% 200 4% 25 2% 100 2% 0 0% 0 0% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-
Slide 27: Revenue Split
REVENUE SPLIT Revenue split (quarterly figures) NOK Million Services Subscriptions 3rd party services Other Revenue increased by 15% y-o-y 37 38 38 40 35 35 39 33 35 • Service revenues from own consultants 33 33 36 34 increased by 15% to NOK 114 million 90 86 87 88 95 96 83 99 112 104 91 114 75 • Su
Slide 28: Statement of Cash Flow
STATEMENT OF CASH FLOW 2020 2019 2020 2019 NOK Million 10-12 10-12 1-12 1-12 12 month rolling cash flow from operations Cash flow from operations (EBITDA) 29.2 28.0 108.9 92.0 (NOK Million) Change in balance sheet items 8.5 15.1 (7.1) (12.0) Net cash flow from operating activities 37.6 43.1 101.7 80
Slide 29: Dividend and Own Shares
• The Board has proposed an ordinary dividend of NOK 0.25 per share based on 2020 results • Share price was NOK 15.0 at the end of Q4 2020, an increase of 30% from NOK 11.5 at the end of Q4 2019. • Current holding of own shares is unchanged at 1,269,136 shares. Value at 31 Dec 2020 was MNOK 19.0 • C
Slide 30: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION • Equity ratio of 15% (19%) per 31 December (17% excl. IFRS 16 Leasing) • Cash balance of MNOK 54 (MNOK 53) • Total balance reduced by MNOK 17 to MNOK 224 Assets Equity and Liabilities 300 250 41 Right –of- use assets 33 200 61 Non-current Current 49 MNOK 158 150 asse
Slide 31: Outlook
Outlook 31 Itera | Q4 2020
Slide 32: Outlook
• Attractive market driven by sustainability and digitalisation after Covid-19 • Itera is well positioned through its full ranges of services, attractive hybrid delivery model across borders and strong industrial partnerships • Expect to complete transformation of own data centres to the cloud with
Slide 33: Q&A session
Q&A session 33
Slide 34: Top 20 Shareholders
No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS* 29.26 NOR 24 048 214 2 OP CAPITAL AS 5.45 NOR 4 478 110 3 GIP AS 4.80 NOR 3 945 000 4 EIKESTAD AS 4.26 NOR 3 500 000 5 SEPTIM CONSULTING AS 3.53 NOR 2 900 000 6 SPAREBANK 1 MARKETS AS 3.41 NOR 2 800 000 7 BOINVESTERING AS 3.22 NOR 2 650 000 8 GAMST
Slide 35: Copyright and Disclaimer
COPYRIGHT AND DISCLAIMER Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Itera and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor use
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