Atea Asa · OSL:ATEA
Atea Asa — Q4 2019 Earnings Presentation
40 slides from Atea Asa's earnings presentation, Feb 6, 2020
Slide 1: Q4 2019 Presentation
Q4 2019 PRESENTATION 6 February 2020
Slide 2: Highlights – Q4 2019
Highlights – Q4 2019 Net Profit grows by 6.7%, driven by higher sales of software and services Comments Higher sales of software and services, offset by slower demand for hardware Tight control of operating expenses High share based compensation expense due to appreciation in Atea share price during
Slide 3: Atea Denmark organization changes
Atea Denmark organization changes • New management appointed in key leadership positions – Managing Director, Atea Denmark (from Jan 2020) – Director of Public Sales (from Nov 2019) – Director of Consulting Services (from March 2020) • Restructuring of operations – Reduction of 67 FTEs in January. R
Slide 4: Denmark
Denmark Revenue falls due to lower demand from the public sector, slower sales of managed services REVENUE EBIT -12.0% +8 MDKK 1,852 Product revenue -10.7% 1,630 17 Service revenue -16.7% DKK in million DKK in million Gross profit -4.8% 8 Operating expenses -7.5% Q4 18 Q4 19 Q4 18 Q4 19
Slide 5: Norway
Norway Softer hardware market, but strong growth in software and services REVENUE EBIT -2.8% -6.3% Product revenue -4.1% 2,688 2,613 118 111 NOK in million Service revenue +2.7% NOK in million Gross profit -1.5% Operating expenses -0.4% Q4 18 Q4 19 Q4 18 Q4 19
Slide 6: Sweden
Sweden Revenue growth in a challenging market environment. EBIT before share-based compensation improves from last year. REVENUE EBIT +3.8% -6.3% Product revenue +3.2% 4,468 156 4,305 147 Service revenue +6.7% SEK in million SEK in million Gross profit -0.3% Operating expenses +1.0% Q4 18 Q4 19 Q4 1
Slide 7: Finland
Finland Major investment to develop services business in Finland. Results in high revenue growth, but short-term pressure on EBIT. REVENUE EBIT +7.7% -11.6% Product revenue +6.1% 82 2.9 76 2.6 Service revenue +23.0% EUR in million EUR in million Gross profit +7.7% Operating expenses +13.6% Q4 18 Q4
Slide 8: Baltics
Baltics Strong demand for consulting and managed services drives higher EBIT REVENUE EBIT -2.3% +7.7% Product revenue -9.0% 41 40 1.8 1.6 Service revenue +21.0% EUR in million EUR in million Gross profit +14.0% Operating expenses +15.5% Q4 18 Q4 19 Q4 18 Q4 19
Slide 9: Cash flow from operations
Cash flow from operations Cash flow from operations of NOK 1,939 million during Q4 2019 Net financial position* was cash positive of NOK 657 million at the end of Q4 2019 2,284 Cash flow is highly concentrated in Q4 based on seasonal fluctuations in 1,939 working capital balance throughout year NOK
Slide 10: Revenue breakdown: Q4 and Full Year 2019
Revenue breakdown: Q4 and Full Year 2019 Q4 Full Year 2019 2018 Growth 2019 2018 Growth Hardware 5,488 5,662 -3.1 % 19,321 19,105 1.1 % Business trends (Q4 and FY 2019) Software 2,859 2,689 6.3 % 10,598 9,163 15.7 % • Hardware market slows, putting Services 1,856 1,822 1.9 % 6,736 6,440 4.6 % pressu
Slide 11: Profit growth: Full Year 2019
Profit growth: Full Year 2019 Solid growth in EBIT (up 8.2%) and Net profit after tax (up 13.4%) The Board will recommend a dividend of NOK 6.50 per share at the AGM in April 2020. The dividend will be distributed in two equal payments in May and November 2020. Full Year 2019 2018 Growth Revenue 36
Slide 12: Information Management, Digital Workplace, Hybrid Platforms
Information Management Digital Workplace Hybrid Platforms
Slide 13: Reseller, Integrator, Service Provider
#1 #1 #1 Reseller Integrator Service Provider Life Cycle Management Professional Services Managed Services
Slide 14: Key market segments for growth strategy
Key market segments for growth strategy – Business intelligence, data analytics and AI – Robotics and automation – Data privacy and information security – Device Lifecycle Management -- with configuration, client operation / support, recycling, financing solutions – Software asset management and clo
Slide 15: Food Trust
Food Trust A sustainable food system
Slide 16: Slide 16
Slide 17: Blockchain
Blockchain A transparent and secure system for transactions and value chains
Slide 18: Q4 2019 Fact Pack
ATCR gen FACT PACK
Slide 19: Highlights – Group
Highlights – Group Q4 Q4 Full year Full year NOK in million 2019 2018 2019 2018 Group revenue 10,203 10,172 36,655 34,708 Group margin 2,162 2,127 7,758 7,534 Gross margin (%) 21.2% 20.9% 21.2% 21.7% EBIT 305 309 747 690 EBIT margin (%) 3.0% 3.0% 2.0% 2.0% Net profit 218 204 530 467 Earnings per sha
Slide 20: Consolidated statement of financial position – Group (1)
Consolidated statement of financial position – Group (1) NOK in million 31 Dec 2019 31 Dec 2018 ASSETS Property, plant and equipment 498 525 Right-of-use assets 996 92 Deferred tax assets 354 401 Goodwill 3,881 3,901 Other intangible assets 237 237 Investment in associated companies 15 13 Long-term
Slide 21: Consolidated statement of financial position – Group (2)
Consolidated statement of financial position – Group (2) NOK in million 31 Dec 2019 31 Dec 2018 ASSETS Right-of-use assets - Buildings and property 760 0 Right-of-use assets - Computer equipment 76 85 Right-of-use assets - Motor vehicles 160 8 Right-of-use assets - Office machines 0 0 Total right-of
Slide 22: Full-time employees - Group
Full-time employees - Group FTEs, end of period 31 Dec 2019 31 Dec 2018 Norway 1,687 1,678 Sweden 2,620 2,497 Denmark 1,461 1,515 Finland 431 356 Baltics 664 665 Logistics 257 237 Atea Global Services 418 382 Atea ASA 12 10 AppXite 35 45 Atea Group 7,585 7,385
Slide 23: Financial performance actual – Segment
Financial performance actual – Segment NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Norway 1,901.4 2,004.4 2,143.7 2,687.7 2,441.6 2,177.4 2,194.3 2,613.3 Sweden 3,314.4 3,932.0 2,780.3 4,022.3 3,575.3 3,984.2 3,011.8 4,225.0 Denmark 2,011.3 2,306.3 1,318.9 2,389.6 1,870.9 2,339.9
Slide 24: Financial performance pro forma – Segment
Financial performance pro forma – Segment NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Norway 1,924.0 2,026.0 2,162.6 2,691.6 2,445.7 2,180.5 2,198.7 2,613.3 Sweden 3,314.4 3,932.0 2,780.3 4,022.3 3,575.3 3,984.2 3,011.8 4,225.0 Denmark 2,011.3 2,306.3 1,318.9 2,389.6 1,870.9 2,339
Slide 25: Income statement actual - Group (NOK million)
Income statement actual - Group (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 4,484.1 4,601.2 4,357.6 5,661.6 4,872.9 4,436.8 4,522.5 5,488.3 Software revenue 2,328.8 2,854.8 1,291.3 2,688.5 2,594.8 3,379.7 1,764.4 2,859.1 Products revenue 6,812.9 7,45
Slide 26: Income statement pro forma - Group (NOK million)
Income statement pro forma - Group (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 4,490.5 4,604.3 4,360.3 5,665.2 4,872.9 4,436.8 4,522.5 5,488.3 Software revenue 2,328.8 2,854.8 1,291.3 2,688.5 2,594.8 3,379.7 1,764.4 2,859.1 Products revenue 6,819.3 7
Slide 27: Income statement actual – Norway (NOK million)
Income statement actual – Norway (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 1,065.1 1,178.9 1,331.7 1,617.5 1,315.6 1,172.0 1,247.5 1,489.1 Software revenue 377.7 349.8 356.7 537.5 613.7 452.2 435.2 577.4 Products revenue 1,442.7 1,528.7 1,688.4 2,1
Slide 28: Income statement pro forma – Norway (NOK million)
Income statement pro forma – Norway (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 1,065.1 1,178.9 1,331.7 1,617.5 1,315.6 1,172.0 1,247.5 1,489.1 Software revenue 377.7 349.8 356.7 537.5 613.7 452.2 435.2 577.4 Products revenue 1,442.7 1,528.7 1,688.4
Slide 29: Income statement actual – Denmark (DKK million)
Income statement actual – Denmark (DKK million) DKK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 835.7 806.0 572.8 959.3 804.5 728.4 701.5 884.1 Software revenue 405.0 612.5 150.9 500.5 304.1 756.6 287.6 419.1 Products revenue 1,240.7 1,418.5 723.6 1,459.8 1,108.6 1,48
Slide 30: Income statement actual – Denmark (NOK million)
Income statement actual – Denmark (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 1,080.9 1,033.6 735.3 1,237.8 1,050.1 947.7 926.7 1,189.6 Software revenue 523.9 786.8 193.0 645.8 397.0 985.5 382.4 566.9 Products revenue 1,604.9 1,820.4 928.4 1,883.6 1,
Slide 31: Income statement actual – Sweden (SEK million)
Income statement actual – Sweden (SEK million) SEK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 1,836.3 2,021.7 1,941.4 2,235.2 2,014.3 1,866.1 1,967.4 2,224.8 Software revenue 1,028.8 1,588.2 552.5 1,371.2 1,156.0 1,823.7 713.4 1,498.0 Products revenue 2,865.1 3,609.8
Slide 32: Income statement actual – Sweden (NOK million)
Income statement actual – Sweden (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 1,774.4 1,873.3 1,786.9 2,088.2 1,883.0 1,706.8 1,817.1 2,104.6 Software revenue 994.1 1,480.2 495.8 1,281.3 1,080.6 1,675.9 658.1 1,415.7 Products revenue 2,768.5 3,353.5 2
Slide 33: Income statement actual – Finland (EUR million)
Income statement actual – Finland (EUR million) EUR in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 39.8 36.3 37.1 47.9 43.5 44.5 38.1 48.4 Software revenue 43.8 23.8 24.3 20.9 50.6 25.6 26.5 24.7 Products revenue 83.6 60.1 61.4 68.8 94.1 70.2 64.6 73.0 Total services rev
Slide 34: Income statement actual – Finland (NOK million)
Income statement actual – Finland (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 383.4 346.6 355.5 461.2 423.8 432.8 375.8 486.5 Software revenue 421.6 226.4 232.8 201.9 493.2 248.8 262.0 251.2 Products revenue 805.0 573.0 588.3 663.1 916.9 681.6 637.8
Slide 35: Income statement actual – Baltics (EUR million)
Income statement actual – Baltics (EUR million) EUR in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 16.6 16.1 15.6 25.8 19.4 17.7 15.1 20.1 Software revenue 1.9 3.1 2.5 5.7 3.1 3.0 3.7 8.5 Products revenue 18.5 19.2 18.1 31.5 22.6 20.8 18.8 28.7 Total services revenue 7.7
Slide 36: Income statement actual – Baltics (NOK million)
Income statement actual – Baltics (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 159.8 153.8 149.9 248.5 189.2 172.3 148.9 202.4 Software revenue 18.6 29.2 23.5 54.5 30.6 29.4 36.1 85.0 Products revenue 178.4 183.0 173.4 302.9 219.8 201.7 185.0 287.4 To
Slide 37: Income statement actual – Group Shared Services (NOK million)
Income statement actual – Group Shared Services (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 1,165.7 1,213.1 1,311.0 1,431.7 1,439.0 1,353.5 1,510.7 1,704.1 Software revenue 0.7 0.7 0.7 1.2 0.9 0.3 0.5 0.9 Products revenue 1,166.3 1,213.8 1,311.7 1,43
Slide 38: Income statement actual – AppXite (EUR million)
Income statement actual – AppXite (EUR million) EUR in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Software revenue 0.0 0.0 0.0 0.0 0.0 0.3 0.4 0.4 Products revenue 0.0 0.0 0.0 0.0 0.0 0.3 0.4 0.4 Total services revenue 0.5 0.4 0.4 0.4 0.6
Slide 39: Income statement actual – AppXite (NOK million)
Income statement actual – AppXite (NOK million) NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Hardware revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Software revenue 0.0 0.0 0.0 0.0 0.0 2.6 3.5 4.0 Products revenue 0.0 0.0 0.0 0.0 0.0 2.6 3.5 4.0 Total services revenue 4.7 3.6 3.8 4.3 5.6
Slide 40: Specialists in IT infrastructure
AICR Specialists in IT infrastructure