Atea Asa · OSL:ATEA
Atea Asa — Q3 2016 Earnings Presentation
46 slides from Atea Asa's earnings presentation, Oct 19, 2016
Slide 1: Q3 2016 presentation
19 October 2016 Q3 2016 presentation
Slide 2: Highlights – Q3 2016
Highlights – Q3 2016 • Revenue of NOK 6,403 million, up 7.5% • EBITDA* of NOK 244 million, up 14.5% • Higher sales across all three lines of business • Improved EBITDA* margin, as operating expenses scale with revenue • Cash flow from operations of NOK 151 million, up from minus NOK 134 million last
Slide 3: Financial Highlights
Financial Highlights Strong improvement across all key financial metrics – revenue, profitability, cash flow Revenue EBITDA* +7.5% +14.5% 6 403 244 NOK in million NOK in million 5 957 214 Q3 15 Q3 16 Q3 15 Q3 16 * Before share-based compensation, expenses related to acquisitions, and restructuring c
Slide 4: Group hardware revenue
Group hardware revenue Growth vs corresponding quarter last year 17.9% 14.1% 11.3% 8.6% 8.2% Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Gross margin development 13.5% 13.5% 13.2% 12.9% 12.7% Q3 15 Q4 15 Q1 16 Q2 16 Q3 16
Slide 5: Group software revenue
Group software revenue Growth vs corresponding quarter last year 44.2% 27.0% 18.0% 14.8% 12.8% Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Gross margin development 14.3% 13.5% 9.2% 9.6% 6.6% Q3 15 Q4 15 Q1 16 Q2 16 Q3 16
Slide 6: Group services revenue
Group services revenue Growth vs corresponding quarter last year 20.2% 12.8% 12.3% 9.7% 2.1% Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Gross margin development 67.2% 66.7% 64.1% 63.6% 63.5% Q3 15 Q4 15 Q1 16 Q2 16 Q3 16
Slide 7: Norway
Norway Solid growth in revenue, with lower personnel costs Revenue EBITDA* +4.8% +25.6% 1 770 62 NOK in million 1 689 NOK in million 49 Q3 15 Q3 16 Q3 15 Q3 16 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 8: Sweden
Sweden Continues to grow market share and increase profitability Revenue EBITDA* +10.0% +13.4% 2 447 88 SEK in million 2 224 SEK in million 78 Q3 15 Q3 16 Q3 15 Q3 16 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 9: Denmark
Denmark Strong revenue growth within client hardware and software Revenue EBITDA* +9.4% +3.1% 1 376 62 DKK in million 60 DKK in million 1 258 Q3 15 Q3 16 Q3 15 Q3 16 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 10: Finland
Finland High revenue growth, but lower gross margin and EBITDA* based on shift in revenue mix Revenue EBITDA* +11.2% N/A 38 EUR in million EUR in million 34 0,3 0 Q3 15 Q3 16 Q3 15 Q3 16 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 11: The Baltics
The Baltics EBITDA* grows due to higher gross margins, despite lower revenue from public sector projects. Revenue EBITDA* -13.1% +6.2% 29 1.9 EUR in million EUR in million 1.8 25 Q3 15 Q3 16 Q3 15 Q3 16 * Before share-based compensation, expenses related to acquisitions, and restructuring costs
Slide 12: Cash flow from operations
Cash flow from operations Cash flow from operations improves from last year based on higher profits and reduced working capital. Highly seasonal cash flow, with strong performance in fourth quarter of the year. 1 458 NOK in million 151 -71 -134 -441 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16
Slide 13: Update on investigation in Denmark
Update on investigation in Denmark Investigations involve activities by former employees of Atea A/S (Atea Denmark) which are unacceptable and in violation of Atea’s Code of Conduct • Investigation on possible abuse of rebate account to Region Skjelland – Commenced June 2015 – Involves former leadin
Slide 14: New strategic partnership
New strategic partnership DALLEMC ATER
Slide 15: The strategic partners
The 10 strategic partners Hewlett Packard fj etftethte gum. Enterprise cisco. mm Microsoft S=—]—S]> = A Ear, lenovo. KS D@LLEMC citrix vmware’ ATER
Slide 16: Summary – Q3 2016
Summary – Q3 2016 • Revenue of NOK 6,403 million, up 7.5% • EBITDA* of NOK 244 million, up 14.5% • All countries (ex-Baltics) show strong revenue growth and lower operating expenses relative to revenue • Solid cash flow from operations • New strategic vendor • Before share-based compensation, expens
Slide 17: Atea – Specialists in IT infrastructure
AICR Specialists in IT infrastructure
Slide 18: Q3 2016 Fact pack
Q3 2016 Fact pack ATER
Slide 19: Key numbers - Group
Key numbers - Group Q3 Q3 YTD YTD Full year 2016 2015 2016 2015 2015 Group revenue (NOK in million) 6,403 5,957 22,092 19,298 27,904 Gross margin (%) 23.5 24.5 22.5 23.5 22.9 EBITDA* (NOK in million) 244 214 669 573 951 EBITDA* margin (%) 3.8 3.6 3.0 3.0 3.4 EBIT (NOK in million) 131 106 320 263 514
Slide 20: Consolidated statement of financial position - Group
Consolidated statement of financial position - Group NOK in million 30 Sep 2016 30 Sep 2015 31 Dec 2015 ASSETS Property, plant and equipment 699 700 742 Deferred tax assets 551 547 553 Goodwill 3,606 3,768 3,815 Other intangible assets 305 355 357 Shares in associated companies 8 8 9 Other long-term
Slide 21: Full-time employees - Group
Full-time employees - Group FTEs, end of period 30 Sep 2016 30 Sep 2015 Norway 1,607 1,676 Sweden 2,023 1,942 Denmark 1,562 1,581 Finland 328 326 Baltics 716 713 Logistics 214 202 Atea Global Services 342 316 Atea ASA 9 9 Atea Group 6,801 6,765
Slide 22: Financial performance actual – Segment
Financial performance actual – Segment NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Norway 1,622.1 1,713.4 1,688.5 2,244.4 1,730.9 1,881.6 1,769.8 Sweden 2,324.5 2,772.1 2,171.0 3,036.1 2,878.9 3,456.0 2,373.3 Denmark 1,825.0 1,727.7 1,553.4 2,564.5 1,785.7 2,403.8 1,714.9 Finland 565.7
Slide 23: Financial performance proforma – Segment
Financial performance proforma – Segment NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Norway 1,622.1 1,713.4 1,688.5 2,244.4 1,730.9 1,881.6 1,769.8 Sweden 2,331.6 2,779.0 2,179.0 3,045.0 2,886.3 3,456.0 2,373.2 Denmark 1,825.0 1,727.7 1,553.4 2,564.5 1,785.7 2,403.8 1,714.9 Finland 565.
Slide 24: Income statement actual - Group (NOK million)
Income statement actual - Group (NOK million) NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 3,694.6 3,568.4 3,817.4 5,096.7 4,011.9 4,205.7 4,129.7 Software revenue 1,496.7 1,870.9 826.6 1,880.0 1,766.8 2,697.6 932.5 Products revenue 5,191.3 5,439.3 4,644.0 6,976.7 5,778.
Slide 25: Income statement proforma - Group (NOK million)
Income statement proforma - Group (NOK million) NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 3,697.6 3,570.1 3,819.2 5,098.8 4,013.7 4,205.7 4,129.7 Software revenue 1,496.7 1,870.8 826.6 1,880.0 1,766.8 2,697.6 932.5 Products revenue 5,194.3 5,440.9 4,645.8 6,978.8 5,78
Slide 26: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 940.8 1,023.8 1,073.2 1,401.0 936.3 1,090.3 1,108.5 Software revenue 282.9 263.2 216.4 379.9 359.8 347.8 253.0 Products revenue 1,223.7 1,287.0 1,289.6 1,780.9 1,296.1 1,438.0 1,3
Slide 27: Income statement proforma – Norway (NOK million)
Income statement proforma – Norway (NOK million) NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 940.8 1,023.8 1,073.2 1,401.0 936.3 1,090.3 1,108.5 Software revenue 282.9 263.2 216.4 379.9 359.8 347.8 253.0 Products revenue 1,223.7 1,287.0 1,289.6 1,780.9 1,296.1 1,438.0 1
Slide 28: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) DKK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 976.4 783.8 803.6 1,292.2 820.3 903.2 891.6 Software revenue 221.9 343.3 126.1 349.0 225.5 628.9 134.7 Products revenue 1,198.3 1,127.1 929.7 1,641.2 1,045.8 1,532.1 1,026.4 Tota
Slide 29: Income statement proforma – Denmark (DKK million)
Income statement proforma – Denmark (DKK million) DKK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 976.4 783.8 803.6 1,292.2 820.3 903.2 891.6 Software revenue 221.9 343.3 126.1 349.0 225.5 628.9 134.7 Products revenue 1,198.3 1,127.1 929.7 1,641.2 1,045.8 1,532.1 1,026.4 To
Slide 30: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 1,144.4 896.1 988.0 1,594.3 1,047.3 1,132.5 1,113.4 Software revenue 260.0 395.1 161.4 430.5 288.0 792.7 165.0 Products revenue 1,404.4 1,291.2 1,149.3 2,024.7 1,335.3 1,925.2 1,
Slide 31: Income statement proforma – Denmark (NOK million)
Income statement proforma – Denmark (NOK million) NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 1,144.4 896.1 988.0 1,594.3 1,047.3 1,132.5 1,113.4 Software revenue 260.0 395.1 161.4 430.5 288.0 792.7 165.0 Products revenue 1,404.4 1,291.2 1,149.3 2,024.7 1,335.3 1,925.2
Slide 32: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) SEK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 1,384.8 1,400.1 1,457.2 1,642.4 1,591.3 1,582.9 1,590.9 Software revenue 647.8 1,108.1 360.1 861.0 743.2 1,329.3 436.6 Products revenue 2,032.6 2,508.2 1,817.3 2,503.5 2,334.5 2,9
Slide 33: Income statement proforma – Sweden (SEK million)
Income statement proforma – Sweden (SEK million) SEK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 1,386.6 1,401.9 1,459.1 1,644.6 1,593.0 1,582.9 1,590.9 Software revenue 647.8 1,108.1 360.1 861.0 743.2 1,329.3 436.6 Products revenue 2,034.4 2,509.9 1,819.2 2,505.6 2,336.2 2
Slide 34: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 1,288.7 1,288.2 1,410.3 1,637.9 1,625.3 1,590.4 1,554.1 Software revenue 602.8 1,021.9 364.1 856.9 759.1 1,340.5 411.9 Products revenue 1,891.5 2,310.0 1,774.4 2,494.8 2,384.5 2,9
Slide 35: Income statement proforma – Sweden (NOK million)
Income statement proforma – Sweden (NOK million) NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 1,290.4 1,289.8 1,412.1 1,640.0 1,627.1 1,590.4 1,554.1 Software revenue 602.8 1,021.9 364.1 856.9 759.1 1,340.5 411.9 Products revenue 1,893.2 2,311.7 1,776.3 2,496.9 2,386.2 2
Slide 36: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) EUR in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 20.7 27.5 22.7 31.3 28.7 26.2 23.3 Software revenue 39.2 19.4 6.3 18.8 36.8 21.7 9.4 Products revenue 59.9 46.9 29.0 50.2 65.5 48.0 32.7 Total services revenue 4.9 5.4 5.0 5.9 6.
Slide 37: Income statement proforma – Finland (EUR million)
Income statement proforma – Finland (EUR million) EUR in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 20.7 27.5 22.7 31.3 28.7 26.2 23.3 Software revenue 39.2 19.4 6.3 18.8 36.8 21.7 9.4 Products revenue 59.9 46.9 29.0 50.2 65.5 48.0 32.7 Total services revenue 4.9 5.4 5.0 5.9
Slide 38: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 180.6 235.9 208.3 289.6 273.4 244.3 215.7 Software revenue 342.5 163.9 65.2 177.0 350.2 200.9 85.9 Products revenue 523.1 399.8 273.4 466.5 623.5 445.2 301.6 Total services reven
Slide 39: Income statement proforma – Finland (NOK million)
Income statement proforma – Finland (NOK million) NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 180.6 235.9 208.3 289.6 273.4 244.3 215.7 Software revenue 342.5 163.9 65.2 177.0 350.2 200.9 85.9 Products revenue 523.1 399.8 273.4 466.5 623.5 445.2 301.6 Total services rev
Slide 40: Income statement actual – the Baltics (EUR million)
Income statement actual – the Baltics (EUR million) EUR in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 14.8 14.5 14.8 17.8 12.5 13.9 14.4 Software revenue 4.0 3.4 3.2 4.4 5.0 2.5 2.4 Products revenue 18.7 17.8 18.1 22.1 17.5 16.4 16.8 Total services revenue 4.4 6.7 10.7 6.7 6.
Slide 41: Income statement proforma – the Baltics (EUR million)
Income statement proforma – the Baltics (EUR million) EUR in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 14.9 14.5 14.8 17.8 12.5 13.9 14.4 Software revenue 4.0 3.3 3.2 4.4 5.0 2.5 2.4 Products revenue 18.9 17.8 18.1 22.1 17.5 16.4 16.8 Total services revenue 6.2 6.7 10.7 6.7
Slide 42: Income statement actual – the Baltics (NOK million)
Income statement actual – the Baltics (NOK million) NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 129.0 123.8 135.7 164.7 118.9 129.9 133.8 Software revenue 34.6 28.6 29.5 40.5 47.9 22.8 22.0 Products revenue 163.6 152.4 165.1 205.2 166.7 152.7 155.8 Total services revenu
Slide 43: Income statement proforma – the Baltics (NOK million)
Income statement proforma – the Baltics (NOK million) NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 130.4 123.8 135.7 164.7 118.9 129.9 133.8 Software revenue 34.6 28.5 29.5 40.5 47.9 22.8 22.0 Products revenue 164.9 152.4 165.1 205.2 166.7 152.7 155.8 Total services reve
Slide 44: Income statement actual – Shared services (NOK million)
Income statement actual – Shared services (NOK million)* NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 889.6 953.7 1,190.1 1,195.6 1,032.0 1,071.1 1,146.4 Software revenue 2.8 2.2 2.8 2.9 2.7 2.5 1.2 Products revenue 892.3 955.9 1,193.0 1,198.5 1,034.7 1,073.7 1,147.6 Tot
Slide 45: Income statement proforma – Shared services (NOK million)
Income statement proforma – Shared services (NOK million)* NOK in million Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Hardware revenue 889.6 953.7 1,190.1 1,195.6 1,032.0 1,071.1 1,146.4 Software revenue 2.8 2.2 2.8 2.9 2.7 2.5 1.2 Products revenue 892.3 955.9 1,193.0 1,198.5 1,034.7 1,073.7 1,147.6 T
Slide 46: Atea – Specialists in IT infrastructure
AICR Specialists in IT infrastructure