Slide 1: Q3 2022 Make a difference
Slide 2: Q3 Report 2022 agenda
Q3 REPORT 2022 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 2022
Q3 REPORT 2022 01 Highlights Q3 2022
Slide 4: Q3 in brief
Q3 REPORT 2022 Q3 in brief 23% We continue to ramp up new offices and cloud Entelios, a part of Agder Energi, has entered into The pipeline of cloud migration Our operation in Ukraine is running as normal and and cloud capabilities to a large end-to-end modernisation ready to continue Organic revenu
Slide 5: Key figures
Q3 REPORT 2022 Key figures Q3 YTD Q3 YTD Q3 YTD 23% 22% 19% 19% 5% 11% Organic revenue Growth in number Operating margin growth of employees Revenues Employees EBIT margin NOK million 2020 2021 2022 End of period 2020 2021 2022 % 2020 2021 2022 200 184 800 18% 176 171 701 180 700 642 661 16% 14.9 %
Slide 6: Business review
Q3 REPORT 2022 02 Business review
Slide 7: Nordic origin with an international approach
Q3 REPORT 2022 Nordic origin with an international approach Nordic origin. Global reach The Nordics is often positioned as digital and sustainable front-runner that show the way globally We are growing together with international customers and partners based on our ONE Itera model across borders. Re
Slide 8: Our steady growth organic model
Q3 REPORT 2022 Our steady growth organic model We continue our strong profitable growth Packaged offerings and Speed, reusability trajectory while investing in our business industrialised services and subscription Customer-centric and our people to increase our scalability and selected as a strong i
Slide 9: A new growth engine with increasing recurring revenue
Q3 REPORT 2022 A new growth engine with increasing recurring revenue There is a gradual shift taking place in the nature of the demand for managed services. Cloud Application Services is our economic investment case with gradually improving profitability during the next 3-12 months. New growth engin
Slide 10: Increasing supply capacity in Central Europe
Q3 REPORT 2022 Increasing supply capacity in Central Europe Itera is investing in three new offices to mitigate slower growth in Ukraine during the war. We are ramping up three new offices in Brno in the Czech epublic, Žilina in Slovakia and Kraków in Poland. The setup costs of recruiters, offices,
Slide 11: Energy transition, digitalisation and rebuilding Ukraine
Q3 REPORT 2022 Energy transition, digitalisation and rebuilding Ukraine As agreed between Prime Minister Støre and President Zelensky, Norway will participate in the post-war reconstruction of Ukraine with a special focus on developing the most optimal ways to support Ukraine’s energy sector. During
Slide 12: The war in Ukraine at turning point
Q3 REPORT 2022 The war in Ukraine at turning point War Mapper (@War_Mapper) / Twitter
Slide 13: Itera for Energy: Powering a sustainable future
Q3 REPORT 2022 Itera for Energy: Powering a sustainable future Operate for the future Transform your workforce Transition to clean Reimagine energy Increase operational resiliency while Attract, train, and retain employees Achieve net-zero commitments Capitalise and expand your market generating val
Slide 14: Digital Factory at Scale for data-driven businesses
Q3 REPORT 2022 Digital Factory at Scale for data-driven businesses Innovation Faster business innovation through CUSTOMER BUSINESS & DIGITAL STRATEGY autonomous teams and adoption of cloud services Speed Business agility and reduced CUSTOMER ANALYTICS & DOMAIN time-to-market through efficient PRODUC
Slide 15: Energy solutions for a sustainable future at Entelios
Q3 REPORT 2022 Energy solutions for a sustainable future at Entelios Entelios, Norway's largest electricity supplier to the corporate market, has chosen Itera as their digitalisation partner. First project is to develop a customer solution with a solid data platform to deliver the optimal experience
Slide 16: Smart asset management monitoring of the electric grid
Q3 REPORT 2022 Smart asset management monitoring of the electric grid Itera has helped DNV to make it more efficient for 150 of the largest electricity suppliers in the USA and Canada to provide electricity to their customers The cloud based solution was demonstrated live with great success for the
Slide 17: Helping immigrant women in working life and society
Q3 REPORT 2022 Helping immigrant women in working life and society The Directorate of Integration and Diversity (IMDi) is responsible for implementing the Government's integration policy. Together we work on several projects, one of them is called “Jobbsjansen programme”, using all assets from our D
Slide 18: Increasing local footprint in the Swedish market
Q3 REPORT 2022 Increasing local footprint in the Swedish market Itera has appointed Joachim von Ekensteen as our new CEO for the Swedish entity. He will lead our efforts to capture market shares and build a local organisation in Sweden. Joachim comes recently from Sopra Steria where he grew their Ne
Slide 19: Building the leading Experience unit in the Nordics
Q3 REPORT 2022 Building the leading Experience unit in the Nordics Our design and user experience unit, named Experience, has taken pole position by developing and hiring the top talents in the market. Despite a demanding talent market, the unit has increased by 20% year to date, and now counts arou
Slide 20: Itera at Arendalsuka
Q3 REPORT 2022 Itera at Arendalsuka Arendalsuka is the largest business and political gathering in Norway every summer. Itera participated this year with two successful events. One panel debate with key roles from Norwegian Industry and Vice Prime Minister of Ukraine and Minister of Digital Transfor
Slide 21: Grow people
Q3 REPORT 2022 Grow people In September, we invited all employees in Itera for a weekend at Vestlia Resort in Geilo It was a busy weekend focused on competence development, onboarding of new employees, bonding, good food, and fun activities. Here is some of the feedback from employees who attended:
Slide 22: Order intake
Q3 REPORT 2022 Order intake Order intake from selected new and existing customers Book-to-bill ratio*) of 0.8 in Q3 and 1.2 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 23: Customer development
Q3 REPORT 2022 Customer development Revenue customers split (in MNOK) New business 100% 11 12 18 23 21 22 16 19 15 ▪ Existing customers accounted for 91.3% (84.9%) 90% 80% of revenues in Q3 2022 70% 60% ▪ New customers won over the past year generated 50% 40% 98 124 126 127 118 136 160 164 156 reven
Slide 24: Skilled and innovative employees
Q3 REPORT 2022 Skilled and innovative employees 701 employees at the end of the quarter Number of employees end of quarter by shore 800 55% ▪ Up by 40 in the quarter 700 600 53% 500 51% ▪ Up by 112 (103) last twelve months 400 49% 300 47% 200 100 45% Nearshore ratio of 53% (51%) 0 Q3 Q4 Q1 Q2 Q3 Q4
Slide 25: Financial review
Q3 REPORT 2022 03 Financial review
Slide 26: Key financials
Q3 REPORT 2022 Key financials 2022 2021 Change 2022 2021 Change 2021 ▪ Growth of 23% fuelled by NOK Million 7-9 7-9 % 1-9 1-9 % FY volume increases of top Operating revenue 170.9 138.9 23% 530.4 434.2 22% 593.0 customers Gross profit 160.6 129.0 24% 492.2 399.9 23% 547.3 Personnel expenses 124.6 97.
Slide 27: Revenue and earnings development
Q3 REPORT 2022 Revenue and earnings development EBIT MNOK margin 180 18% ▪ Strong sales growth year over year 160 16% with 2-year CAGR of 19.7% and an average of 11.8% EBIT margin 140 14% ▪ Quarterly figures are impacted by 120 12% number of working days net of vacations. Q3 2022 had 66 (66) 100 10%
Slide 28: Statement of cash flow
Q3 REPORT 2022 Statement of cash flow 2022 2021 2022 2021 2021 12 month rolling cash flow NOK Million 7-9 7-9 1-9 1-9 FY from operations (NOK Million) EBITDA 18.7 20.6 80.8 77.3 101.6 107 Change in balance sheet items 3.4 (8.0) (46.2) (40.3) (32.1) Net cash flow from operating activities 22.0 12.5 3
Slide 29: Dividend and own shares
Q3 REPORT 2022 Dividend and own shares ▪ The board has resolved to pay a supplementary dividend of NOK 0.30 1.20 per share for 2021. Payment will be 1.00 made on November 4. 0.80 NOK per share 0.60 ▪ Share price was NOK 12.65 at the 0.40 end of September 2022, a change of 0.20 -19% (-18% incl. divid
Slide 30: Statement of financial position
Q3 REPORT 2022 Statement of financial position ▪ Equity ratio of 27% (17%) Assets Equity and Liabilities per 30 September 2022 300 ▪ 30% (20%) excl. IFRS 16 Leasing 250 ▪ Cash balance of MNOK 41 Right-of-use assets 23 30 (MNOK 23) 200 Non-current 52 Current assets liabilities MNOK ▪ Total balance in
Slide 31: Outlook
(3 REPORT 2022 TERA 04 Outlook
Slide 32: Outlook
Q3 REPORT 2022 Outlook Regional expansion Continued high Readiness to migrate Connecting Ukraine Profitable growth continues in the growth through and operate larger and Norway to enable and cash flow are Nordics and Central existing and new scale cloud the green energy shift key focus areas. Europe
Slide 33: Q&A
Q3 REPORT 2022 05 Q&A
Slide 34: We stand with Ukraine
Slide 35: Top 20 shareholders
Q3 REPORT 2022 Top 20 shareholders No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS 30.62 NOR 25,163,031 2 OP CAPITAL AS 5.60 NOR 4,605,242 3 GIP AS 5.09 NOR 4,186,000 4 SEPTIM CONSULTING AS 3.72 NOR 3,060,000 5 EIKESTAD AS 3.65 NOR 3,000,000 6 BOINVESTERING AS 3.44 NOR 2,827,361 7 GAMST INVEST AS