Slide 1: Interim Report Itera
INTERIM REPORT ITERA
Slide 2: Q3 Report 2024 agenda
Q3 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 Q3 2024
Q3 REPORT 2024 ITERA 1 Highlights Q3 2024
Slide 4: Highlights
Q3 REPORT 2024 ITERA Highlights Large customer 500+ MNOK in two Opening of offi ce win-back large agreements in Stavanger region A global customer were replacing Itera Estimated value over four years for two This expansion brings Itera closer to with their global supplier affecting 35- large framewo
Slide 5: Q3 in brief
Q3 REPORT 2024 ITERA Q3 in brief Market Wins Order intake Ukraine -5% After more than a year in a challenging environment, . 500+ MNOK in estimated value over four years for two large framework Seasonal variations in order intake with book-to-bill of 0.7 in Q3 and 1.1 last 12 Our business advisory s
Slide 6: Key figures
Q3 REPORT 2024 ITERA Key figures Q3 YTD Q3 Q3 YTD -5% -2% -8% 0.1% 6.4% Organic revenue Growth in number of EBIT margin growth employees last 12 months
Slide 7: Business review
Q3 REPORT 2024 ITERA 2 Business review
Slide 8: We are specialists in sustainable digital transformation
Q3 REPORT 2024 ITERA We are specialists in sustainable digital transformation Nordic origin. Global reach The Nordics is often positioned as digital and sustainable front-runner that show Reykjavik Bergen the way globally. Oslo Stavanger Stockholm We are growing together with international Bryne cus
Slide 9: Business value
Q3 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, Operationalised On-Premise, scattered cloud cloud Business not in business
Slide 10: With AI and data coming from everywhere, CIOs must deliver safe AI outcomes
Q3 REPORT 2024 ITERA With AI and data coming from everywhere, CIOs must deliver safe AI outcomes. By 2026, Gartner expects Data everywhere and every kind generative AI to cause an enterprise AI capabilities that software vendors spending spike of more than 15% Embedded AI 43% are adding to the enter
Slide 11: Implementation of AI at Itera
E Implementation of AI at Itera Bring your own AI Embedded AI SAPIENSE – ITERA’S AI PLATFORM BUSINESS & DIGITAL STRATEGY ANALYTICS & DIGITAL DIGITAL DATAOPS PRODUCT 1 PRODUCT 2 WORKLOADS INDUSTRY STANDARDS AI AI DIGITAL FACTORY AT SCALE ECOSYSTEM CLOUD COMMUNITY OF EXCELLENCE (CCoE) Generative AI Bu
Slide 12: Delivery excellence generated large customer win-back
Q3 REPORT 2024 ITERA Delivery excellence generated large customer win-back Years of delivery excellence was key to a global customer requesting a roll-back to Itera after a few months Vendor consolidation and a quest for lower rates induced a global customer to transition a significant portion of te
Slide 13: Kredinor renews framework agreement valued at NOK 200-250 Million
Kredinor renews framework agreement valued at NOK 200-250 Million Kredinor has renewed its framework agreement with Itera for digitalisation services. Valued at NOK 200-250 million over four years. Kredinor's purpose with the renewal of the framework agreement is to continue its ongoing efforts to s
Slide 14: New Framework Agreement with IMDi worth up to 300 million
New Framework Agreement with IMDi worth up to 300 million The Directorate of Integration and Diversity (IMDi) has awarded a new framework agreement to Itera for consulting services related to the investigation, development, and maintenance of IMDi's digital services. The agreement involves a procure
Slide 15: Opening a new office in the Stavanger region
Q3 REPORT 2024 ITERA Opening a new office in the Stavanger region Itera has today announced that it has completed a small acquisition, adding 20+ skilled employees and an attractive customer base, in order to establish a new office in the Stavanger region. This expansion gives Itera greater proximit
Slide 16: The opportunity in the Stavanger Region
Q3 REPORT 2024 ITERA The opportunity in the Stavanger Region ▪ Itera will be present in Rogaland as an ▪ Norway's most important industrial cluster: international player with strong local presence, an Offshore, Oil/Gas, and Renewable Energy (wind, entrepreneurial culture and a full range of services
Slide 17: Launch of "Housing for Ukraine" pilot project
Q3 REPORT 2024 ITERA Launch of "Housing for Ukraine" pilot project Itera, in collaboration with • The building is produced as modules indoors at the factory in Moelv and transported on trailers to Borodyanka - an hour's drive north-west of Kyiv. Here they are lifted and assembled into new Moelven, l
Slide 18: Order intake
Q3 REPORT 2024 ITERA Order intake Order intake from selected new and existing customers. Book-to-bill ratio*) of 0.7 in Q3 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
Slide 19: Customer mix
Q3 REPORT 2024 ITERA Customer mix Revenue customers split (in MNOK) Share existing customers High visibility 91 .8% (94.9%) 80% (83%) of revenues in Q3 2024 Top 30 customers, share of revenue New customers High customer concentration signifies 1 5.2 (9.8) ▪ ▪ Strategic relationships Full range of se
Slide 20: Skilled and innovative employees
Q3 REPORT 2024 ITERA Skilled and innovative Number of employees end of quarter by shore employees 699 employees at the end of the quarter Down by 63 last twelve months as part of the business optimisation program. Nearshore ratio of 51% (51%) Our distributed delivery model of onshore and nearshore c
Slide 21: Financial review
Q3 REPORT 2024 ITERA 3 Financial review
Slide 22: Key financials
Q3 REPORT 2024 ITERA Key financials ▪ Revenue down 5% 2024 2023 Change 2024 2023 Change 2023 NOK Million 7-9 7-9 % 1-9 1-9 % FY ▪ Personnel expenses down 2% Operating revenue 184.2 193.9 -5% 636.9 649.5 -2% 871.6 ▪ Other opex decrease following Gross profit 169.4 181.6 -7% 586.7 607.5 -3% 813.7 busi
Slide 23: Business optimisation program
Q3 REPORT 2024 ITERA Business optimisation program Itera has implemented a business optimisation Optimisation program with the target of improving EBIT margin program by 1.2-1.6 points ▪ Strict cost control has brought spending on other Operating Expenses (OPEX) down to 2019-20 levels ▪ In Q3 of 202
Slide 24: Revenue and earnings development
Q3 REPORT 2024 ITERA Revenue and earnings development Strong revenue growth year over year with 2-year MNOK Margin CAGR of 11.6% and an average of 8.1% EBIT margin Opportunities for margin expansion ▪ Conversion of promising pipeline ▪ Normalisation of utilisation ▪ Increasing recurring revenue and
Slide 25: Statement of cash flow
Q3 REPORT 2024 ITERA Statement of cash flow 12-month rolling cash flow 2024 2023 2024 2023 2023 from operations (NOK Million) NOK Million 7-9 7-9 1-9 1-9 FY EBITDA 8.3 16.9 65.4 84.1 110.7 Change in balance sheet items (2.1) (20.1) (39.5) (46.9) (17.3) Net cash flow from operating activities 6.2 (3.
Slide 26: EBITDA to Cash conversion
Q3 REPORT 2024 ITERA EBITDA to Cash conversion Quarterly +93.6 pts EBITDA to Cash conversion Consistent high EBITDA to Cash conversion rate High and consistent cash conversion is a key enabler for returns to shareholders in the form of dividends and/or share repurchase. The business requires limited
Slide 27: Dividend and own shares
Q3 REPORT 2024 ITERA Dividend and own shares ▪ A supplementary dividend of NOK 0.20 per Allocations to shareholders share for 2023 to be paid 6 Dec 2024 ▪ Ordinary dividend of NOK 0.40 paid in June ▪ Share price was NOK 10.95 at the end of Sep 2024, a change of -2% incl. dividends from NOK 12.05 at
Slide 28: Statement of financial position
Q3 REPORT 2024 ITERA Statement of financial position per 30 June 2024 ▪ Cash and equity reduced following strong dividend Assets Equity and Liabilities payments last 12 months (158% of net income) ▪ Equity ratio of 19% (24%), 24% (31%) excluding IFRS 16 Leasing Right-of-use ▪ Cash balance of MNOK 30
Slide 29: Outlook
Q3 REPORT 2024 ITERA 4 Outlook
Slide 30: Outlook
Q3 REPORT 2024 ITERA Outlook Underlying strong Readiness to migrate Growth opportunities Connecting Ukraine Profitable growth demand for digital and operate larger through new and the Nordics to and cash flow are transformation with scale cloud Stavanger office enable the green key focus areas. the
Slide 31: Q&A
Q3 REPORT 2024 ITERA 5 Q&A
Slide 32: Top 20 shareholders
Q3 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 5.35 NOR 4 400 088 4 SEPTIM CONSULTING AS 5.07 NOR 4 165 946 5 BOINVESTERING AS 3.70 NOR 3 037 862 6 GAMST INVEST AS 3.23 NOR 2 653 462 7 JØSYR