Q PRESENTATION 7 FEBRUARY 2018

Transcription

1 Q PRESENTATION 7 FEBRUARY 2018

2 Highlights Q Record high revenue, operating profit, and cash flow from operations REVENUE of NOK 10.0 billion (up 10.1%) Change in currency rates positively impacts revenue growth by 3.4% EBIT of NOK 392 million (up 9.6%) EBIT margin of 3.9% Operating cash flow of NOK 1,765 million Positive net cash balance of MNOK 102 at year end Proposed dividend of NOK 6.50 per share To be paid in two equal installments in May and November 2018

3 Financial summary Strong growth in EBIT, as revenue grows faster than operating expenses CURRENCY: MNOK Q4 17 Q4 16 Growth Revenue 10,015 9, % Gross profit 2,128 1, % % margin 21.2% 21.6% -0.4% Operating expense 1,736 1, % EBIT % % margin 3.9% 3.9% 0.0% Solid revenue growth across all lines of business Reduced GM% due to growth in sales of lower margin software Opex growth driven by higher G&A expenses (marketing, IT) Note: Currency exchange rates have a positive impact on revenue growth rates of 3.4% in the fourth quarter of Operating expenses include personnel costs, other opex, depreciation and amortization costs.

4 NOK in million NOK in million Norway Rapid EBIT growth, based on higher revenue and lower personnel costs R E V E N U E % E B I T % 2, Product revenue +14.5% 2, Service revenue +6.0% Gross profit +6.0% Operating expenses +1.5% Q4 16 Q4 17 Q4 16 Q4 17

5 SEK in million SEK in million Sweden Very strong growth in revenue, gross profit and EBIT R E V E N U E % E B I T % 3,417 3, Product revenue +13.1% Service revenue +8.8% Gross profit +12.4% Operating expenses +11.5% Q4 16 Q4 17 Q4 16 Q4 17

6 DKK in million DKK in million Denmark Lower revenue partly offset by reduced personnel expenses R E V E N U E % E B I T % 2,108 1, Product revenue -9.0% Service revenue -4.6% Gross profit -8.5% Operating expenses -4.5% Q4 16 Q4 17 Q4 16 Q4 17

7 EUR in million EUR in million Finland Solid revenue growth, improved gross margins and lower operating expenses R E V E N U E % E B I T % Product revenue +5.0% Service revenue +5.3% 0.8 Gross profit Operating expenses +10.6% -2.9% Q4 16 Q4 17 Q4 16 Q4 17

8 EUR in million EUR in million Baltics Revenue growth accelerates based on large projects and contracted services R E V E N U E % E B I T % Product revenue +12.1% Service revenue +27.0% Gross profit +12.3% Operating expenses +12.3% Q4 16 Q4 17 Q4 16 Q4 17

9 NOK in million Cash flow from operations Cash flow from operations of MNOK 1,765, as working capital metrics improve 1,765 1,765 Cash flow from operations is concentrated in Q4, based on seasonal movements in net working capital 189 Positive net cash balance of MNOK 102 at year end Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 CF Operations Changes in WC

10 Summary Q Record high revenue, operating profit and operating cash flow REVENUE Revenue of NOK 10.0 billion, up 10.1% EBITDA EBITDA of NOK 488 million, up 7.6% EBIT EBIT of NOK 392 million, up 9.6% CASH FLOW Cash flow from operations of NOK 1,765 million, which is the same level as last year * Currency exchange rates have a positive impact on revenue growth rates of 3.4% in the fourth quarter of 2017

11 Full Year 2017 financial performance Revenue of NOK 32.4 billion (up 4.0% from 2016) and EBIT of NOK 799 million (up 17.9% from 2016) Revenue (MNOK) 35,000 EBIT (MNOK) ,000 32, Revenue growth of 10.1% per year since reorganization in start ,000 20,000 22, EBIT growth of 22.5% per year during same period 15, , Revenue EBIT 200 * Organic growth rate of 6.4%, plus acquisitions and currency effects

12 Performance targets and results Financial Objective Organic growth in excess of market Achieve 20%+ market share through organic growth and selective acquisitions 2017 Results Growth of 4.4% in constant currency, in line with market growth* Estimated market share of 18% Growth in profit margin EBIT % margin up to 2.5%, from 2.2% in 2016 Strong cash conversion Free cash flow of MNOK 976** High annual dividend payout, based on cash flow generation Cash dividend of NOK 6.50 to be proposed in 2018 * Pro forma growth adjusted for acquisitions and currency effects. Market growth based on preliminary IDC estimate of 4.6% (2017 full year). ** Free Cash Flow defined as Cash Flow from Operations, minus capex. Capital expenditures include assets acquired through financial leases.

13 Strategic initiatives to improve profitability LEVERAGE GROUP FUNCTIONS TO REDUCE OPERATING COST STRENGTHEN CAPABILITIES IN HIGHER VALUE ADDED PRODUCTS AND SERVICES COUNTRY INITIATIVES TO IMPROVE MARGINS AND PRODUCTIVITY Supply chain Nearshoring Group IT Security Hybrid cloud Business intelligence Internet of things Networking Service growth Service efficiency Solution selling Operating expenses

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15 Strategic initiatives to strengthen capabilities Analytics AI Atea deliver the entire value chain for big data, analytics, AI and IoT. From collecting data storing data processing data securing data analyzing data to presenting the data We have developed big data and analytics concepts based on IBM and Microsoft technology to address needs like data driven decision support, enhanced competitive ability, new business opportunities and business models In the IoT space Atea has built a partner eco-system based on a Hybrid IoT platform and competence to integrate the pieces into complete solutions, for example for Smart City solutions, Smart buildings and Smart welfare

16 Analytics

17 Visualization Atea digital platform Atea Cloud IBM Cloud / Azure Fog Computing Secure communication IoT platform Big Data and Analytics Welfare City Buildings Integrations Smart municipalities Atea hosted cloud

18 Use cases

19 A DIGITAL PLATFORM FOR SUBSCRIPTION AND CONSUMPTION BASED ENABLEMENT

20 WHAT APPXITE IS HELPING TO ACHIEVE AppXite wants to become a leader in enabling ISV s and resellers to grow through subscription and consumption based models The solution, that is continuously being developed, aims to solve the major challenges faced by these companies when enabling their business for automated transactions and selling in the cloud In order for the companies to grow, they require a number of supporting services, which AppXite intends to deliver as offerings together with the solution Services which are ensuring that the offerings developed by the companies can be scaled technically and provisioned automatically to the highest degree possible

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22 Q FACT PACK

23 Highlights - Group Q4 Q4 Full year Full year NOK in million Group revenue 10,015 9,096 32,438 31,188 Gross margin (%) 21.2% 21.6% 22.3% 22.2% EBIT EBIT margin (%) 3.9% 3.9% 2.5% 2.2% Net profit Earnings per share (NOK) Diluted earnings per share (NOK) Cash flow from operations 1,765 1,765 1,238 1,404 Free cash flow 1,696 1, , Jun Jun Dec Dec 2016 Net financial position Liquidity reserve 3, ,362 3,040 2,362 Working capital -1,692-1,385-1,692-1,385 Working capital in relation to annualized revenue (%) -4.2% -3.8% -5.2% -4.4% Equity ratio (%) 22.6% 23.8% 22.6% 23.8% Number of full-time employees 6,904 6,882 6,904 6,882

24 Consolidated statement of financial position - Group NOK in million 31 Dec Dec 2016 ASSETS Property, plant and equipment Deferred tax assets Goodwill 3,845 3,658 Other intangible assets Investment in associated companies 12 0 Other long-term receivables 6 7 Non-current assets 5,252 5,205 Inventories Trade receivables 6,886 5,975 Other receivables 1, Cash and cash equivalents 1, Current assets 9,663 8,251 Total assets 14,915 13,456 EQUITY AND LIABILITIES Equity 3,373 3,200 Interest-bearing long-term liabilities 120 1,079 Other long-term liabilities Deferred tax liabilities Non-current liabilities 408 1,348 Trade payables 6,755 5,835 Interest-bearing current liabilities Other current liabilities 3,476 2,921 Current liabilities 11,133 8,908 Total liabilities 11,541 10,256 Total equity and liabilities 14,915 13,456

25 Full-time employees - Group FTEs, end of period 31 Dec Dec 2016 Norway 1,573 1,558 Sweden 2,248 2,077 Denmark 1,475 1,580 Finland Baltics Logistics Atea Global Services Atea ASA 9 9 Atea Group 6,904 6,882

26 Financial performance actual Segment NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Norway 1, , , , , , , ,762.4 Sweden 2, , , , , , , ,758.6 Denmark 1, , , , , , , ,490.4 Finland The Baltics Group Shared Services 1, , , , , , , ,416.4 Eliminations -1, , , , , , , ,460.3 Other income Operating revenues group total 7, , , , , , , ,015.5 Norway Sweden Denmark Finland The Baltics Group Shared Services Operating profit before group cost (EBIT) Group cost Operating profit (EBIT) Financial income Financial expenses Net finance Profit before taxes (EBT) Tax Profit for the period

27 Income statement actual - Group (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Hardware revenue 4, , , , , , , ,840.1 Software revenue 1, , , , , , ,431.0 Products revenue 5, , , , , , , ,271.1 Total services revenue 1, , , , , , , ,743.9 Other income Revenue 7, , , , , , , ,015.5 Margin 1, , , , , , , ,127.9 Hardware margin (%) 13.5% 13.5% 12.7% 12.8% 13.5% 13.6% 12.7% 13.4% Software margin (%) 9.6% 6.6% 13.5% 9.1% 8.9% 6.8% 12.1% 8.4% Product margin (%) 12.3% 10.8% 12.9% 11.8% 12.1% 10.9% 12.6% 11.9% Total services margin (%) 67.2% 66.7% 63.5% 67.0% 66.8% 67.7% 65.8% 65.6% Total products and services margin (%) 23.4% 21.0% 23.5% 21.6% 23.0% 21.2% 24.2% 21.2% Personnel costs 1, , , , , , , ,350.1 Other operating expenses EBITDA (adjusted) EBITDA (adjusted) (%) 2.9% 2.5% 3.8% 5.0% 2.9% 2.7% 4.1% 5.0% Expenses/income related to acquisitions Share based compensation EBITDA Depreciation Amortization related to acquisitions Operating profit (EBIT)

28 Income statement actual Norway (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Hardware revenue , , , , , ,745.9 Software revenue Products revenue 1, , , , , , , ,262.6 Total services revenue Other income Revenue 1, , , , , , , ,762.4 Margin Product margin (%) 14.2% 13.5% 13.2% 12.5% 15.4% 13.1% 12.5% 12.6% Total services margin (%) 62.2% 61.0% 61.1% 67.1% 64.9% 64.4% 63.4% 62.5% Total products and services margin (%) 26.3% 24.7% 24.2% 23.0% 28.1% 25.2% 24.4% 21.6% Personnel costs Other operating expenses EBITDA (adjusted) EBITDA (adjusted) (%) 2.3% 2.9% 3.5% 4.6% 3.3% 3.6% 4.3% 5.0% Expenses/income related to acquisitions Share based compensation EBITDA Depreciation Amortization related to acquisitions Operating profit (EBIT)

29 Income statement actual Denmark (DKK million) DKK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Hardware revenue , ,105.4 Software revenue Products revenue 1, , , , , , ,509.4 Total services revenue Other income Revenue 1, , , , , , , ,937.7 Margin Product margin (%) 10.8% 7.5% 10.5% 10.1% 8.8% 7.9% 9.8% 10.2% Total services margin (%) 68.3% 67.4% 65.1% 63.9% 63.8% 65.2% 62.1% 61.4% Total products and services margin (%) 25.3% 19.4% 24.4% 21.6% 21.4% 19.7% 24.5% 21.5% Personnel costs Other operating expenses EBITDA (adjusted) EBITDA (adjusted) (%) 4.1% 2.4% 4.5% 7.3% 2.9% 1.5% 4.4% 6.3% Expenses/income related to acquisitions Share based compensation EBITDA Depreciation Amortization related to acquisitions Operating profit (EBIT)

30 Income statement actual Denmark (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Hardware revenue 1, , , , , ,418.0 Software revenue Products revenue 1, , , , , , , ,939.2 Total services revenue Other income Revenue 1, , , , , , , ,490.4 Margin Product margin (%) 10.8% 7.4% 10.6% 10.1% 8.8% 7.9% 9.7% 10.1% Total services margin (%) 68.3% 67.4% 65.1% 63.8% 63.8% 65.2% 62.1% 61.4% Total products and services margin (%) 25.3% 19.4% 24.4% 21.5% 21.4% 19.7% 24.4% 21.5% Personnel costs Other operating expenses EBITDA (adjusted) EBITDA (adjusted) (%) 4.1% 2.4% 4.5% 7.3% 2.9% 1.5% 4.3% 6.2% Expenses/income related to acquisitions Share based compensation EBITDA Depreciation Amortization related to acquisitions Operating profit (EBIT)

31 Income statement actual Sweden (SEK million) SEK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Hardware revenue 1, , , , , , , ,057.9 Software revenue , , , ,193.6 Products revenue 2, , , , , , , ,251.5 Total services revenue Other income Revenue 2, , , , , , , ,842.2 Margin Product margin (%) 12.2% 10.8% 12.8% 11.5% 12.8% 10.9% 13.2% 11.5% Total services margin (%) 63.4% 63.9% 65.2% 65.5% 66.6% 68.0% 67.1% 67.2% Total products and services margin (%) 21.0% 18.9% 21.8% 20.1% 22.4% 19.6% 23.0% 20.1% Personnel costs Other operating expenses EBITDA (adjusted) EBITDA (adjusted) (%) 2.9% 2.8% 3.6% 4.1% 3.3% 3.2% 4.0% 4.1% Expenses/income related to acquisitions Share based compensation EBITDA Depreciation Amortization related to acquisitions Operating profit (EBIT)

32 Income statement actual Sweden (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Hardware revenue 1, , , , , , , ,012.9 Software revenue , , ,167.2 Products revenue 2, , , , , , , ,180.1 Total services revenue Other income Revenue 2, , , , , , , ,758.6 Margin Product margin (%) 12.2% 10.8% 12.9% 11.5% 12.8% 11.0% 13.2% 11.5% Total services margin (%) 63.4% 63.9% 65.2% 65.5% 66.6% 67.9% 67.1% 67.2% Total products and services margin (%) 21.0% 18.8% 21.9% 20.1% 22.4% 19.6% 22.9% 20.1% Personnel costs Other operating expenses EBITDA (adjusted) EBITDA (adjusted) (%) 2.9% 2.8% 3.6% 4.1% 3.3% 3.2% 4.0% 4.1% Expenses/income related to acquisitions Share based compensation EBITDA Depreciation Amortization related to acquisitions Operating profit (EBIT)

33 Income statement actual Finland (EUR million) EUR in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Hardware revenue Software revenue Products revenue Total services revenue Other income Revenue Margin Product margin (%) 8.4% 10.1% 12.1% 10.3% 7.8% 9.2% 11.4% 11.5% Total services margin (%) 60.2% 57.8% 56.3% 59.6% 61.1% 61.5% 60.3% 57.8% Total products and services margin (%) 12.7% 15.9% 18.1% 15.9% 11.9% 14.7% 19.0% 16.8% Personnel costs Other operating expenses EBITDA (adjusted) EBITDA (adjusted) (%) 1.5% 1.3% -0.1% 1.9% 1.5% 2.0% 1.4% 3.8% Expenses/income related to acquisitions Share based compensation EBITDA Depreciation Amortization related to acquisitions Operating profit (EBIT)

34 Income statement actual Finland (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Hardware revenue Software revenue Products revenue Total services revenue Other income Revenue Margin Product margin (%) 8.4% 10.1% 12.2% 10.3% 7.8% 9.2% 11.4% 11.4% Total services margin (%) 60.2% 57.8% 56.3% 59.7% 61.1% 61.5% 60.4% 57.9% Total products and services margin (%) 12.7% 15.9% 18.2% 16.0% 11.9% 14.6% 18.9% 16.7% Personnel costs Other operating expenses EBITDA (adjusted) EBITDA (adjusted) (%) 1.5% 1.3% -0.1% 1.9% 1.5% 2.0% 1.4% 3.7% Expenses/income related to acquisitions Share based compensation EBITDA Depreciation Amortization related to acquisitions Operating profit (EBIT)

35 Income statement actual Baltics (EUR million) EUR in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Hardware revenue Software revenue Products revenue Total services revenue Other income Revenue Margin Product margin (%) 10.6% 13.6% 13.0% 12.2% 13.1% 11.6% 12.7% 10.0% Total services margin (%) 64.1% 60.6% 52.0% 56.4% 61.3% 59.4% 55.9% 58.7% Total products and services margin (%) 24.4% 26.7% 26.0% 20.1% 28.3% 25.6% 26.1% 19.7% Personnel costs Other operating expenses EBITDA (adjusted) EBITDA (adjusted) (%) 5.7% 6.2% 7.8% 4.9% 4.9% 5.1% 6.2% 6.0% Expenses/income related to acquisitions Share based compensation EBITDA Depreciation Amortization related to acquisitions Operating profit (EBIT)

36 Income statement actual Baltics (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Hardware revenue Software revenue Products revenue Total services revenue Other income Revenue Margin Product margin (%) 10.6% 13.7% 13.0% 12.2% 13.1% 11.6% 12.7% 10.1% Total services margin (%) 64.1% 60.5% 52.0% 56.3% 61.3% 59.4% 56.0% 58.7% Total products and services margin (%) 24.4% 26.7% 26.0% 20.0% 28.3% 25.6% 26.1% 19.8% Personnel costs Other operating expenses EBITDA (adjusted) EBITDA (adjusted) (%) 5.7% 6.2% 7.8% 4.9% 4.9% 5.1% 6.2% 6.0% Expenses/income related to acquisitions Share based compensation EBITDA Depreciation Amortization related to acquisitions Operating profit (EBIT)

37 Income statement actual Shared services (NOK million) NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Hardware revenue 1, , , , , , ,349.0 Software revenue Products revenue 1, , , , , , ,351.5 Total services revenue Other income Revenue 1, , , , , , , ,416.6 Margin Product margin (%) 2.2% 2.5% 2.4% 2.5% 2.3% 2.5% 2.3% 2.8% Total services margin (%) 85.8% 85.0% 84.2% 84.9% 83.6% 90.9% 86.6% 86.7% Total products and services margin (%) 6.1% 6.4% 6.2% 6.1% 6.6% 6.9% 6.3% 6.7% Personnel costs Other operating expenses EBITDA (adjusted) EBITDA (adjusted) (%) 0.0% 0.3% 1.1% 1.0% 0.1% 0.7% 1.0% 0.9% Expenses/income related to acquisitions Share based compensation EBITDA Depreciation Amortization related to acquisitions Operating profit (EBIT) * Atea Logistics and Atea Global Services

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