Atea Asa · OSL:ATEA
Atea Asa — Q3 2020 Earnings Presentation
31 slides from Atea Asa's earnings presentation, Oct 21, 2020
Slide 1: Q3 2020 Presentation
Q3 2020 PRESENTATION October 21, 2020
Slide 2: Highlights – Q3 2020
Highlights – Q3 2020 Record high operating profit in a challenging economic environment Revenue of NOK 8.2 billion (up 4.6%) ‒ Software revenue grows by 16.0% EBIT of NOK 215 million (up 18.6%) ‒ Based on higher revenue, increased gross margin and tight control of operating expense ‒ Solid improveme
Slide 3: Income Statement – Q3 2020
Income Statement – Q3 2020 CURRENCY: MNOK Q3 2020 Q3 2019 Growth Comments Hardware 4,544 4,522 0.5% Software 2,047 1,764 16.0% Strong growth in software revenue Services 1,594 1,541 3.5% Revenue 8,185 7,828 4.6% Gross profit 1,847 1,755 5.3% Higher gross margin on product sales Gross margin % 22.6%
Slide 4: Business unit performance – Q3 2020
Business unit performance – Q3 2020 • EBIT improves in nearly all businesses, with very strong growth in Finland and Baltics • Atea Denmark returns to operating profit in Q3, marking next step in turnaround % REVENUE REVENUE EBIT CURRENCY: Local in million Q3 2020 Q3 2020 Q3 2019 CAGR Q3 2020 Q3 201
Slide 5: Cash flow from operations
Cash flow from operations Higher cash flow from operations compared with last year, driven by: CURRENCY: MNOK Q3 2020 Q3 2019 • Improved operating profit Cash earnings 336 330 • Low working capital balance throughout Q3 2020 Changes in working capital -199 -381 – Tight control of overdue (excluding
Slide 6: Net financial position
Net financial position Net financial position of NOK +299 million Net debt / EBITDA ratio* of -0.2 is NOK 3.8 billion below loan covenants CURRENCY: MNOK Q3 2020 Q3 2019 Interest-bearing liabilities -837 -1,595 Cash and cash equivavlents 1,136 706 Net financial position* 299 -889 EBITDA - rolling 4
Slide 7: Strategy
Strategy • Expand solution offerings in high growth areas SOLUTION OFFERING VA L U E P R O P O S I T I O N Sensitivity: Internal
Slide 8: Operations
Operations • Drive productivity through greater utilization of Atea Group resources PRODUCT RESALE REDUCE COST OF GOODS / ADMINISTRATION ATTACH SERVICES CONSOLIDATION AND AUTOMATION Group Procurement Nearshoring center SERVICE DELIVERY Atea Logistics Center STREAMLINE SERVICE Group IT / automation L
Slide 9: New COO in Atea Group
New COO in Atea Group Steinar Sønsteby CEO Atea Carl-Johan Hultenheim Robert Giori COO CFO Michael Jacobs Linus Wallin Kathrine Forsberg Juha Sihvonen Arunas Bartusevičius Managing Director Managing Director Managing Director Managing Director Managing Director Norway Sweden Denmark Finland Baltics
Slide 10: Dividend to shareholders
Dividend to shareholders Dividend for 2020 • Based on Atea’s profit improvement and solid financial position in the current market environment, the Board has resolved to pay a dividend of NOK 5.00 per share in November 2020, under the power of attorney granted by the AGM in April 2020 • The dividend
Slide 11: Summary – Q3 2020
Summary – Q3 2020 REVENUE Revenue of NOK 8.2 billion, up 4.6% DIVIDEND Dividend of NOK 5.00 per share in 11/2020 Net financial position of NOK +299 million EBIT EBIT of NOK 215 million, up 18.6% NET DEBT Sensitivity: Internal
Slide 12: ATCA
ATCA Specialists in IT infrastructure
Slide 13: Q3 2020 Fact Pack
Q3 2020 FACT PACK
Slide 14: Highlights – Group
Highlights – Group Q3 Q3 YTD YTD Full year NOK in million 2020 2019 2020 2019 2019 Group revenue 8,185 7,828 27,827 26,451 36,655 Gross profit 1,847 1,755 5,909 5,596 7,758 Gross margin (%) 22.6% 22.4% 21.2% 21.2% 21.2% EBIT 215 181 466 442 747 EBIT margin (%) 2.6% 2.3% 1.7% 1.7% 2.0% Net profit 149
Slide 15: Consolidated statement of financial position – Group
Consolidated statement of financial position – Group NOK in million 30 Sep 2020 30 Sep 2019 31 Dec 2019 ASSETS Property, plant and equipment 535 549 498 Right-of-use assets 1,366 892 996 Deferred tax assets 367 404 354 Goodwill 4,219 3,855 3,881 Other intangible assets 286 231 237 Investment in asso
Slide 16: Full-time employees - Group
Full-time employees - Group FTEs, end of period 30 Sep 2019 30 Sep 2019 31 Dec 2019 Norway 1,655 1,687 1,687 Sweden 2,458 2,537 2,620 Denmark 1,376 1,459 1,461 Finland 410 409 431 Baltics 663 652 664 Logistics 242 250 257 Atea Global Services 439 405 418 Atea ASA 11 12 12 AppXite 41 39 35 Atea Group
Slide 17: Financial performance actual – Segment
Financial performance actual – Segment NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Norway 2,441.6 2,177.4 2,194.3 2,613.3 2,241.9 2,306.5 2,199.9 Sweden 3,575.3 3,984.2 3,011.8 4,225.0 3,526.9 4,575.7 3,192.2 Denmark 1,870.9 2,339.9 1,680.5 2,197.0 1,822.0 2,581.9 1,705.4 Finland 980.5
Slide 18: Financial performance pro forma – Segment
Financial performance pro forma – Segment NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Norway 2,445.7 2,180.5 2,198.7 2,613.3 2,241.9 2,306.5 2,199.9 Sweden 3,575.3 3,984.2 3,011.8 4,225.0 3,526.9 4,575.7 3,192.2 Denmark 1,870.9 2,339.9 1,680.5 2,197.0 1,822.0 2,581.9 1,705.4 Finland 980
Slide 19: Income statement actual - Group (NOK million)
Income statement actual - Group (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Hardware revenue 4,872.9 4,436.8 4,522.5 5,488.3 4,510.1 4,716.1 4,544.0 Software revenue 2,594.8 3,379.7 1,764.4 2,859.1 2,767.5 4,079.0 2,047.2 Products revenue 7,467.7 7,816.5 6,286.9 8,347.4 7,
Slide 20: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Hardware revenue 1,315.6 1,172.0 1,247.5 1,489.1 1,154.7 1,188.2 1,223.0 Software revenue 613.7 452.2 435.2 577.4 515.4 563.7 502.7 Products revenue 1,929.3 1,624.2 1,682.8 2,066.4 1,670.1 1,751.9
Slide 21: Income statement pro forma – Norway (NOK million)
Income statement pro forma – Norway (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Hardware revenue 1,315.6 1,172.0 1,247.5 1,489.1 1,154.7 1,188.2 1,223.0 Software revenue 613.7 452.2 435.2 577.4 515.4 563.7 502.7 Products revenue 1,929.3 1,624.2 1,682.8 2,066.4 1,670.1 1,75
Slide 22: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) DKK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Hardware revenue 804.5 728.4 701.5 884.1 651.1 623.8 608.9 Software revenue 304.1 756.6 287.6 419.1 363.0 858.4 301.0 Products revenue 1,108.6 1,485.0 989.1 1,303.1 1,014.1 1,482.1 909.9 Total se
Slide 23: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Hardware revenue 1,050.1 947.7 926.7 1,189.6 911.1 922.8 872.6 Software revenue 397.0 985.5 382.4 566.9 508.0 1,249.0 430.2 Products revenue 1,447.1 1,933.1 1,309.2 1,756.4 1,419.0 2,171.8 1,302.
Slide 24: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) SEK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Hardware revenue 2,014.3 1,866.1 1,967.4 2,224.8 1,813.1 1,867.6 1,760.7 Software revenue 1,156.0 1,823.7 713.4 1,498.0 1,119.9 1,893.1 759.2 Products revenue 3,170.3 3,689.8 2,680.8 3,722.8 2,932
Slide 25: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Hardware revenue 1,883.0 1,706.8 1,817.1 2,104.6 1,775.7 1,929.6 1,814.4 Software revenue 1,080.6 1,675.9 658.1 1,415.7 1,096.8 1,936.4 793.3 Products revenue 2,963.6 3,382.6 2,475.2 3,520.4 2,872
Slide 26: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) EUR in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Hardware revenue 43.5 44.5 38.1 48.4 45.3 42.9 42.5 Software revenue 50.6 25.6 26.5 24.7 60.2 27.1 27.7 Products revenue 94.1 70.2 64.6 73.0 105.5 70.0 70.1 Total services revenue 6.5 7.0 7.5 9.0
Slide 27: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Hardware revenue 423.8 432.8 375.8 486.5 473.5 473.6 453.2 Software revenue 493.2 248.8 262.0 251.2 629.9 308.1 294.4 Products revenue 916.9 681.6 637.8 737.7 1,103.4 781.6 747.6 Total services r
Slide 28: Income statement actual – Baltics (EUR million)
Income statement actual – Baltics (EUR million) EUR in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Hardware revenue 19.4 17.7 15.1 20.1 16.5 16.1 15.2 Software revenue 3.1 3.0 3.7 8.5 7.2 2.3 2.8 Products revenue 22.6 20.8 18.8 28.7 23.7 18.4 18.0 Total services revenue 8.7 9.0 8.4 10.9 8.3 8.
Slide 29: Income statement actual – Baltics (NOK million)
Income statement actual – Baltics (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Hardware revenue 189.2 172.3 148.9 202.4 172.5 177.7 162.5 Software revenue 30.6 29.4 36.1 85.0 75.2 26.7 29.8 Products revenue 219.8 201.7 185.0 287.4 247.7 204.4 192.3 Total services revenue 85
Slide 30: Income statement actual – Group Shared Services (NOK million)
Income statement actual – Group Shared Services (NOK million) NOK in million Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Hardware revenue 1,439.0 1,353.5 1,510.7 1,704.1 1,589.0 1,682.5 1,636.5 Software revenue 0.9 2.9 4.1 4.9 5.2 6.7 11.6 Products revenue 1,439.9 1,356.4 1,514.8 1,709.0 1,594.2 1,689
Slide 31: ATCA
ATCA Specialists in IT infrastructure