Itera Asa · OSL:ITERA
Itera Asa — Q1 2025 Earnings Presentation
39 slides from Itera Asa's earnings presentation, 2025
Slide 1: Interim report
ITERA Interim report 4
Slide 2: Highlights of the quarter, Business review, Financial review, Outlook, Q&A
Q1 REPORT 2025 ITERA 1. Highlights of the quarter 2. Business review 3. Financial review 4. Outlook 5. Q&A Arne Mjøs Bent Hammer Chief Executive Officer Chief Financial Officer
Slide 3: Highlights Q1 2025
Q1 REPORT 2025 ITERA Highlights Q1 2025
Slide 4: Highlights
Q1 REPORT 2025 ITERA Highlights Growth and margin Enter Ukraine Embracing AI across improvement with Itera our business Solid sequential improvements in Successful “Enter Ukraine with We are actively embracing AI as a both revenue and profitability, Itera” is showing strong momentum transformative f
Slide 5: Q1 in brief
Q1 REPORT 2025 ITERA Q1 in brief Organic growth EBIT margin Revenue, MNOK 232 229 224 YoY growth 212 1% Q1 last year: -1% Q1 last year: 8.4% -1% -1% 184 -5% Previous quarter: -4% Previous quarter: 3.5% -5% RTM operational Ending number of cash flow MNOK Employees EBIT margin 8.4% 9.4% 0.1% 3.5% 9.1%
Slide 6: Market view
Q1 REPORT 2025 ITERA Market view ▪ Market demand remains soft but slightly improving after a slow-down in the past couple of year. ▪ No signs of effect from increased geopolitical uncertainty in our key industries but increased focus on Europe. ▪ The ongoing shift towards cloud-native and data drive
Slide 7: Business review
Q1 REPORT 2025 ITERA Business review
Slide 8: Our value-driven culture
Q1 REPORT 2025 ITERA Our value-driven culture We are open to new ideas and listen to people At Itera, we place great emphasis on our core values. with something to say. It is These values describe how we wish to act in relation to the nature of our company our environment and each other. to constant
Slide 9: Nordic roots. European presence.
Q1 REPORT 2025 ITERA Nordic roots. European presence. Itera is a vibrant team of business advisors, designers, and technologists. By placing the customer at the heart of everything we do, we ensure their needs and ambitions are met with precision across all our locations. Number Countries Years in o
Slide 10: Two main offerings
Q1 REPORT 2025 ITERA Our core business offering We are a comprehensive service provider dedicated to accelerating sustainable digital transformation in ▪ Financial Services ▪ Energy & Industries ▪ Public Sector ▪ Others Two main offerings Responsible business We provide expert advisory services for
Slide 11: Our core business offering
ITERA Our core business offering
Slide 12: Sector development
Q1 REPORT 2025 ITERA Sector development Our key industries include financial services, This focus gives us an understanding of the energy and the public sector. Additionally, evolution of these industries, their business we are establishing a strong foothold in the issues and new and emerging techno
Slide 13: Driving Digital and Business Transformation through AI
Q1 REPORT 2025 ITERA Driving Digital and Business Transformation through AI 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 Busine
Slide 14: By 2027, GenAI tools are expected to significantly reduce modernisation costs
Q1 REPORT 2025 ITERA By 2027, GenAI tools are expected to significantly reduce modernisation costs by by explaining legacy business applications and creating appropriate replacements. Gartner
Slide 15: Case: Application assessments and AI-powered tools
Q1 REPORT 2025 ITERA Case: Application assessments and AI-powered tools From: To: Weeks and months Minutes and hours Traditional application assessment AI-powered application assessment Purpose Purpose To evaluate legacy systems, identify inefficiencies, and uncover More efficient, accurate, and act
Slide 16: Design delivers growth, profitability, and strategic value
Q1 REPORT 2025 ITERA Design delivers growth, profitability, and strategic value The Experience department has achieved a remarkable utilisation rate of 80-90%, showcasing our operational strength and unwavering commitment to excellence. Growing demand for critical design services As a full-service c
Slide 17: Our commitment to Europe's digital future
Q1 REPORT 2025 ITERA Our commitment to Europe's digital future Through our Cloud and Application Services capabilities we are monitoring the development of the global cloud market closely from a security and sovereignty perspective. Upholding democratic values In these uncertain times, it is essenti
Slide 18: Responsible business
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Slide 19: Enter Ukraine with Itera
Q1 REPORT 2025 ITERA Enter Ukraine with Itera Enter Ukraine with Itera is a dual-track initiative launched in 2023, encompassing both business and humanitarian objectives to aid Ukraine’s recovery. Our mission is to contribute meaningfully to Ukraine’s rebuilding process by helping Nordic companies
Slide 20: Our instrumental support for rebuilding Ukraine
Q1 REPORT 2025 ITERA Our instrumental support for rebuilding Ukraine 370 m temporary bridges Resilience of the energy New homes, hospitals, Ensuring the delivery of humanitarian cargo, system military barracks and more the passage of ambulances, repair teams, and Engaging Bergen Engines AS on fast-t
Slide 21: Naftogaz explores energy and digitalisation partnership with Bergen Engines and Itera
Q1 REPORT 2025 ITERA Naftogaz explores energy and digitalisation partnership with Bergen Engines and Itera Itera has entered into a strategic partnership with Naftogaz, the largest national energy company in Ukraine, focusing on cooperation in energy and digital technologies. Itera has played a cruc
Slide 22: Itera is establishing a strong foothold in the rapidly growing defence industry
Q1 REPORT 2025 ITERA Itera is establishing a strong foothold in the rapidly growing defence industry Deliver trusted and Empower personnel Transform the Optimise decision Enhance secure digital backbone and modernise facilities capability lifecycle advantage interoperability Distribute secure hybrid
Slide 23: Itera's brand has a strong association with Ukraine
Q1 REPORT 2025 ITERA Itera's brand has a strong association with Ukraine Arne Mjøs feature d on TV2 Nyhetene fro m Kyiv on March 1, 2025. Jon Erik Høgbe rg (Gro up COO, Itera) interviewed from Kyiv on TV2 Nyhetene on April 9, 2025.
Slide 24: Our responsible business is adding value to Itera
Q1 REPORT 2025 ITERA Our responsible business is adding value to Itera New and Five new New service Digital Factory All services stronger offices offering at Scale position
Slide 25: Order intake
Q1 REPORT 2025 ITERA Order intake Order intake from selected new and existing customers. Book-to-bill ratio*) of 1.0 in Q1 and 1.0 for the last 12 months. Secured significant new and extended agreements in recent quarters. Growing pipeline of promising opportunities. *) The book-to-bill ratio is the
Slide 26: Customer mix
Q1 REPORT 2025 ITERA Customer mix Share existing customers High visibility Revenue customers split (in MNOK) of revenues in Q1 2025 Top 30 customers, share of revenue New customers High customer concentration signifies ▪ Strategic relationships Largest customers’ share of revenue ▪ Full range of ser
Slide 27: Skilled and innovative employees
Q1 REPORT 2025 ITERA Skilled and innovative Number of employees end of quarter by shore employees 707 (736) employees at the end of the quarter Down by 29 last twelve months as part of the business optimisation program. Nearshore ratio of 49% (51%) Our distributed delivery model of onshore and nears
Slide 28: Financial review
Q1 REPORT 2025 ITERA Financial review
Slide 29: Key financials
Q1 REPORT 2025 ITERA Key financials 2025 2024 Change 2024 Growth and margin improvement NOK Million 1-3 1-3 % FY Operating revenue 231.6 228.5 1% 848.8 • Return to positive year-over-year growth Gross profit 214.0 212.1 1% 783.0 EBITDA margin 12.6 % 12.1 % 0.4pts 9.5 % • Higher revenue per FTE gives
Slide 30: Revenue and EBIT development
Q1 REPORT 2025 ITERA Revenue in NOK millions Revenue and EBIT development Opportunities for revenue and margin expansion • Conversion of promising pipeline • Normalisation of utilisation • Increasing recurring revenue and cloud migration and modernisation driven by AI and security • Expansion in Swe
Slide 31: Revenue by type
Q1 REPORT 2025 ITERA Revenue by type Quarterly revenue by type (MNOK) Revenue per employee up by 6% • Revenue from own consultants unchanged at NOK 192 million despite 4% fewer employees • Revenue from subscription services increased by 5% to NOK 20 million • Revenue from third-party services decrea
Slide 32: Cash flow
Q1 REPORT 2025 ITERA Quarterly cash flow from operations Cash flow NOK million Cash flow from operations • MNOK -4.5 (-6.8) in Q1 2025 • MNOK 75.5 (81.3) last 12 months Cash flow from investing activities • MNOK -3.0 (-2.9) in Q1 2025 • MNOK -8.8 (-18.4) last 12 months Last twelve months cash flow f
Slide 33: EBITDA to Cash conversion
Q1 REPORT 2025 ITERA Improved cash conversion EBITDA to Cash conversion of 91.86 in the last 12 months, up 8.3 points from last year +8.3 pts EBITDA to Cash conversion EBITDA to Cash conversion last 12 months
Slide 34: Consistent high distribution of earnings to shareholders
Q1 REPORT 2025 ITERA Consistent high distribution of earnings to shareholders Allocations to shareholders • Proposed ordinary dividend of NOK 0.20 for 2024 and authorisation to pay supplementary dividend, to be decided in AGM in May • Share price was NOK 9.24 at the end of March 2025, a change of -1
Slide 35: Outlook
Q1 REPORT 2025 ITERA Outlook
Slide 36: Outlook
Q1 R EPORT 2025 ITERA Outlook Underlying strong Readiness to migrate Growth opportunities Connecting Ukraine and Profitable growth demand for digital and operate larger scale through new Rogaland the Nordics to enable and cash flow are transformation with the cloud transformations to office the gree
Slide 37: Q&A
Q1 REPORT 2025 ITERA Q&A
Slide 38: Top shareholders
Q4 R EPORT 2024 ITERA Top 20 shareholders No. Name % Nat. Shareholding 1 ARNE MJØS INVEST AS 33.29 NOR 27 363 031 2 OP CAPITAL AS 5.77 NOR 4 739 085 3 GIP AS 5.39 NOR 4 432 246 4 SEPTIM CONSULTING AS 5.23 NOR 4 300 000 5 BOINVESTERING AS 3.89 NOR 3 198 324 6 GAMST INVEST AS 3.46 NOR 2 843 520 7 JØSY
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