Q Interim Report January-March I am pleased to see that despite the tough market conditions in Q1 we have continued gaining market share.

Transcription

1 Q1 213 Interim Report January-March 213 I am pleased to see that despite the tough market conditions in Q1 we have continued gaining market share. Claus Hougesen CEO of Atea

2 Highlights Revenue of NOK 5,84.8 million, up 5.5% y-o-y EBITDA of NOK 14.8 million, down 13.7% y-o-y EBITDA margin of 2.8%, down from 3.4% y-o-y Operational cash flow of NOK million, up from NOK million y-o-y Acquisition of Itale AS in Norway and Exait AB in Sweden Revenue EBITDA Cash flow (YTD) 8, 6, 4,819 5,34 4,451 6,321 5, , , , Key figures Q1 Q1 Full year Operating revenue () 5,84.8 4, ,93.3 Gross margin (%) EBITDA () * EBITDA margin (%) EBIT () Earnings per share (NOK) ** Diluted earnings per share (NOK) ** Operating cash flow () Free cash flow () Mar Mar Dec 212 Net financial position () Cash reserve () 1, , ,833.6 Working capital () Working capital ratio (%) Equity ratio (%) Number of employees 6,53 5,997 6,266 * Before share-based compensation and acquisition costs ** Excluding Atea ASA's number of own shares (73,61 end of Q1 213) 2

3 Market update The financial turmoil in Europe continued to impact the Nordic IT infrastructure market in Q The market has remained weak, and margins have been under pressure. This is particularly the case in the hardware segment where the demand for servers and PCs has declined. IDC s latest forecast for Atea s target market (the Blue Box) shows a growth of 1.8% in the Nordics in 213. The forecast shows a hardware decline of.5%, software growth of 4.8% and consulting and services growth of 3.2%. In comparison with IDC s forecasted market growth for the full year 213 of 1.8%, Atea achieved growth in constant currency of 5.7% and organic growth of 4.6% in the Nordics in Q Atea is therefore continuing to gain market share. HW revenue and growth 4,5 4, -9,5% 3,5 3, +4,5% +5,5% -1,4% 2,5 2, 3,941 3,566 1,5 2,72 2,842 2,683 2,832 2,897 2,856 1, 5 Q2 Q3 Q4 Q1 Comparable Quarter Latest Quarter SW revenue and growth 1,6 +8,1% +16,1% 1,4 1,2 +26,5% Financial review Q , , ,4% 1,51 1,389 1,193 1, Q2 Q3 Q4 Q1 Comparable Quarter Latest Quarter Group Group revenue was up 5.5% from NOK 4,819.2 million in Q1 212 to NOK 5,84.8 million in Q Hardware revenue was down 1.4%, software revenue was up 26.5% and consulting and services revenue was up 7.2%. Organic revenue was up 3.9% in constant currency. The drop in hardware revenue reflects tougher market conditions in particular in the PC and server segments, and postponement of some orders. Services revenue was somewhat affected by the fewer working days in the quarter due to Easter falling in Q1 this year and in Q2 last year. 1,4 1,2 1, ,35 1,113 Services revenue and growth 97 1,16 1,19 1,253 1,46 1,121 Q2 Q3 Q4 Q1 Comparable Quarter +5,3% +7,6% +7,2% +12,% Latest Quarter EBITDA in Q1 213 ended at NOK 14.8 million, down 13.7% y-o-y. The main reason for the decline in EBITDA is decreased earnings in the Norwegian market, as a consequence of lower hardware sales due to postponement of orders, and lower product margin. The total gross margin for the Group was 25.%, down from 25.8% in Q

4 Norway Revenue in Q1 213 was NOK 1,435.2 million, up 2.4% compared with Q Hardware revenue was down 9.6%, software revenue was up 43.1%, while consulting and services revenue was up 11.1%. Organic revenue increased by.5%. IDC predicts growth of 3.% in Norway for the full year 213, split between 1.4% for hardware, 4.9% for software and 4.1% for services. Q1 213 had fewer working days than Q1 212 due to Easter falling in Q1 this year and in Q2 last year. The decline in hardware revenue was influenced by postponement of orders related to a few frame agreements which are already won by Atea. The organic growth in software revenue of 41.7% was driven by large orders in both the public and the private sectors. Organic consulting and services growth was 9.%, well above IDC s prediction for 213. Consulting and services show a positive development as a result of increased focus. 2,5 2, 1,5 1, 5 1,42 Revenue 1,524 1,55 1,922 1, EBITDA On 28 February Atea AS completed acquisition of Itale AS through the acquisition of the holding company Mobility Invest AS. Itale is a nationwide supplier of mobile and telecommunications, has offices in Oslo, Stavanger, Bergen, Larvik and Sandefjord and has 25 employees. Itale delivers customized mobile communications solutions to business customers and has frame agreements with many of the largest companies and public, local and central government in Norway. The company is expected to generate revenue of NOK 115 million and EBITDA of NOK 12 million in 213. The acquisition of Mobility Invest, and thereby Itale, is in line with Atea's strategy to gain a significant position in the mobile terminal market. Itale delivers both products and services in a rapidly growing market based on smartphones and tablets. The agreed enterprise value was NOK 49 million EBITDA in Q1 213 ended at NOK 33.3 million, compared with NOK 51.6 million in Q Product margin ended at 14.5%, down from 16.2% in Q1 212, influenced by increased public deliveries in Q The total gross margin ended at 29.6%, up from 29.5% in Q Organic growth in operational costs of 4.6% reflects organic growth in the average workforce of 98 employees. EBITDA margin in Q1 213 ended at 2.3% versus 3.7% last year. 4

5 Sweden Revenue in Q1 213 ended at NOK 1,784.5 million, up 22.% (up 19.5% in constant currency) compared with last year. Hardware revenue was up 16.8%, software revenue was up 44.4%, while consulting and services revenue was up 7.3% in constant currency. Organic revenue in constant currency increased by 18.3%. IDC predicts growth of 1.8% in Sweden for the full year 213, split between -.9% for hardware, 5.1% for software and 3.5% for services. Organic growth in hardware revenue of 16.3% was driven by particularly strong revenue from the public sector. Software revenue increased by 43.6% organically. Atea has a strong position within sale of licenses and is winning many new cases. Atea in Sweden continues to gain market share. 2,5 2, 1,5 1, 5 1,463 1,722 Revenue 1,42 2,34 1, EBITDA On 21 February Atea AB in Sweden completed the acquisition of Exait AB. Exait is recognized for its strong service organization, covering the northernmost region of Sweden with offices in Luleå, Piteå, Skellefteå, Kiruna and Stockholm. Due to the focus on services, services revenue constitutes 65% of the total revenue. The company has 91 employees, was established in 2 and has since then had a successful growth track record. The acquisition will strengthen Atea s market position in the northern region of Sweden and scale up the service organization within this region considerably. The acquired company is expected to deliver revenue of NOK 114 million and EBITDA of NOK 7 million in the fiscal year ending 3 September 213. The agreed enterprise value was NOK 4 million EBITDA in Q1 213 ended at NOK 46.5 million compared with NOK 48.9 million in Q Product margin ended at 12.4%, down from 14.2% in Q1 212 as Atea has been successful in winning a number of large public deals with lower than average margins. The services margin ended at 59.8% compared with 69.% in Q The decrease in the services margin is due to the use of subcontractors on a number of projects. The total gross margin ended at 22.4% for Q1 213, down from 27.1% in Q Organic operational costs were down by 2.2% in constant currency as a consequence of increased focus on costs and an organic decrease in the average workforce by 38 employees y-o-y. EBITDA margin ended at 2.6% versus 3.3% last year. 5

6 Denmark Revenue in Q1 213 ended at NOK 1,331.7 million, up 1.7% (up 4.1% in constant currency) compared with last year. Hardware revenue was down 3.9%, software revenue was up 54.8%, while consulting and services revenue was up 2.5% in constant currency. Organic revenue in constant currency increased by 3.1%. IDC predicts growth of.3% in Denmark for the full year 213, split between -3.% for hardware, 4.8% for software and 2.6% for services. The decline in hardware revenue mainly reflects lower PCs sales to the public sector. Software shows a strong organic increase of 54.%, which was driven by a few high-volume deals, primarily in the public sector. Atea in Denmark continues to gain market share. EBITDA Revenue 2, 1,8 1,6 1,4 1,2 1, ,742 1,521 1,31 1,332 1,157 EBITDA in Q1 213 ended at NOK 56.4 million, compared with NOK 56.5 million in Q The product margin ended at 1.4% compared with 11.8% in Q The tougher market conditions are causing increased price pressure on hardware. The consulting and services margin increased to 65.5% from 6.5% in Q The increase in margin was due to less use of subcontractors. The total gross margin ended at 22.5% for Q1 213, down from 22.7% in Q Organic operational costs were down by.5% in constant currency, caused by a continued focus on costs. Total EBITDA margin ended at 4.2% compared with 4.3% last year. 6

7 Finland Revenue in Q1 213 ended at NOK million, down 17.7% (down 15.9% in constant currency) compared with last year. Hardware revenue was down 18.5%, software revenue was down 14.9%, while consulting and services revenue was down 1.9% in constant currency. Organic revenue in constant currency declined by 15.9%. IDC predicts growth of 2.2% in Finland for the full year 213, split between -1.1% for hardware, 4.2% for software and 2.5% for services. The Baltics Revenue in Q1 213 was NOK million, up 4.3% (up 6.5% in constant currency) compared with last year. Organic revenue in constant currency declined by 13.3%. The revenue in Q1 213 has been affected by delayed public spending due to a change of government in Lithuania, as well as a temporary increase in macroeconomic uncertainty as a consequence of the potential adoption of the Euro in Latvia and Lithuania in the near future. The decline in revenue was caused by a weaker market and strong competition in both the private and the public sector. 25 Revenue Revenue EBITDA in Q1 213 ended at NOK 4.9 million, compared with NOK.9 million in Q Gross margin ended at 15.1%, up from 12.2% in Q EBITDA in Q1 213 ended at NOK 3.6 million, compared with NOK 6.9 million in Q1 212, reflecting weaker revenue. Total gross margin was 2.9% compared with 18.% in Q EBITDA EBITDA

8 Equity and cash flow Shareholders equity at 31 March 213 was NOK 3,976.1 million, corresponding to an equity ratio of 44.4%, down from 45.5% at 31 March 212. The Group generated an operational cash flow of NOK million in Q1 213, which was NOK million above the corresponding quarter last year. This is primarily explained by a lower level of inventory compared with last year. The working capital ratio at 31 March 213 was 1.5%, down from 2.8% at 31 March 212. Capital expenditure in Q1 213 amounted to NOK 77.1 million. NOK 44.9 million relate to general maintenance investments including further development of internal systems. Additionally, the Group has invested NOK 32.2 million in a warehouse in Denmark consolidating and optimizing inventory handling and reducing the number of warehouses from three to one. Cash flow related to acquisitions amounted to NOK million. These investments are related to the acquisition of Exait AB in Sweden and Itale AS in Norway. Shares Atea ASA had 8,181 shareholders at 31 March 213 compared with 8,343 at 31 December 212. The 1 largest shareholders at 31 March 213 were: Main Shareholders * Shares % Systemintegration ApS ** 28,612, % State Street Bank & Trust Co. Ref: OM8 *** 7,62, % JPMorgan Chase Bank A/C Columbia Wanger *** 3,613, % The Bank of New York Mellon *** 2,596, % State Street Bank & Trust Co. Ref: OM4 *** 2,495, % JPMorgan Chase Bank Nordea Treaty Acct *** 2,276, % JPMorgan Chase Bank Special Treaty Lending Acct*** 2,253, % Odin Norge 1,964, % State Street Bank & Trust Co. Ref: OM6 *** 1,85, % Folketrygdfondet 1,714, % Other 47,66, % Total number of shares 12,11,17 1. % * Source: Verdipapirsentralen ** Includes shares held by Ib Kunøe *** Includes client nominee accounts At 31 March 213, Chairman Ib Kunøe and close associates controlled a total of 28.3% of the shares, including the shares held by Systemintegration ApS. At the end of Q1 213, the Group s net financial position was NOK million, down from NOK 49.3 million at the end of Q Cash reserves, including unutilized credit facilities, were NOK 1,392.6 million at 31 March

9 Outlook IDC's forecast for 213 for Atea's Blue Box is growth of 1.8%. The services market is expected to grow by 3.2% and the software market by 4.8%, while the hardware market is expected to decrease by.5%. IDC believes that the hardware market in 213 will be driven by a continued decline in the PC and server markets, while networks, smartphones, tablets etc. will grow. This is supported by the ongoing shift in the client market, where the use of desktop PCs is declining, use of laptop PCs is stagnating, and use of smartphones and tablets is increasing. Growth in the product market will be driven by a gradual increase in Windows 8 projects and the new touchscreen products that are being launched related to this. The outsourcing of internal IT functions to external partners represents a strong trend in the services market, particularly the outsourcing of client management. This trend is being reinforced by increasing complexity in the client environment, with more and new types of equipment, more operating systems and programs, as well as increased demand for access and availability. Atea is well positioned for further growth in this area. The uncertainty in the outlook primarily relates to macroeconomic developments. A macroeconomic downturn or increased uncertainty may result in hesitancy to commit to large investments programs. However, because of the relatively short lifespan of the IT infrastructure environment, investments cannot be postponed for longer periods of time. Investments in IT infrastructure are an integral part of the solution to the major challenge facing the western world, which is increasing efficiency. IDC therefore believes that the IT infrastructure market in the Nordics will grow faster than GDP at an average annual rate of 2.7% towards 215. Atea is well placed to take advantage of the opportunities ahead. In November 211, Atea launched the Together Towards the Top strategy, which sets the stage for Atea s development towards 215. Implementation of key initiatives has started according to plan. Key initiatives include market-oriented actions aimed at increasing services revenue, and in particular contracted services revenue, a dedicated sales focus on mid-market and international customer groups, as well as internal actions to improve gross margins, improve processes and lower the cost base. On this basis, Atea expects to gain market shares and improve profitability in the coming years. The goal of the strategy is to increase revenue to NOK 3 billion and EBITDA to NOK 1.8 billion by 215. A key assumption for achieving this financial goal was that the market conditions would be positive and that the market would grow at an average rate of 4.3% from 211 to 215. In light of the market development in 212 and IDC s expectations for 213, Atea will follow the development during 213 and will revisit the goal later this year. 9

10 Consolidated statement of comprehensive income Q1 Q1 Full Year Note Operating revenue 2 5,84.8 4, ,93.3 Goods consumed 3, , ,832.2 Employee benefits expense excl. share based comp. 1, ,58.6 Other operating expenses EBITDA before share based compensation Share based compensation Expenses/income related to acquisition EBITDA Depreciation and amortisation Operating profit/loss (EBIT) Financial income Financial expenses Net financial items Profit/loss before tax, continued operations Tax on continued operations Profit/loss for the period from continued operations Other comprehensive income Remeasurement of defined benefit obligation 1, Income tax OCI relating to items that will not be reclassified to profit or loss 1, Items that will not be reclassified subsequently to profit or loss Currency translation differences Forward contracts - cash flow hedging Income tax OCI relating to items that may be reclassified to profit or loss Items that may be reclassified subsequently to profit or loss Other comprehensive income Total comprehensive income for the period Of which non-controlling ownership interests

11 Consolidated statement of financial position Note 31 Mar Mar Dec 212 ASSETS Property, plant and equipment Deferred tax assets 1, Goodwill 2,95.5 2,89.5 2,832.5 Other intangible assets Other long-term receivables Non-current assets 4, , ,74.6 Inventories Trade receivables 3, ,95.8 4,437.8 Other receivables Other financial assets Cash and cash equivalents Current assets 4,72.1 4,57.6 5,735.5 Total assets 8, ,52. 9,81.1 EQUITY AND LIABILITIES Share capital and premium 5 1, , ,778.1 Other unrecognised reserves Retained earnings 1,6 2, , ,18.7 Equity attributable to shareholder of Atea ASA 3, , ,815.8 Non-controlling interests... Equity 3, , ,815.8 Interest-bearing long-term liabilities Other long-term liabilities Retirement benefit obligations 1, Deferred tax liabilities Non-current liabilities Trade payables 2, ,23.5 3,616. Interest-bearing current liabilities VAT, taxes and government fees Provisions Other current liabilities 1,32. 1,25.3 1,358.4 Other financial liabilities Current liabilities 4,612. 4, ,678.6 Total liabilities 4, ,641. 5,994.3 Total equity and liabilities 8, ,52. 9,

12 Consolidated statement of changes in equity 31 Mar Mar 212 Equity at start of period 3, ,829.4 Currency translation differences Forward contracts - cash flow hedging Remeasurement of defined benefit obligation. 4.9 Other comprehensive income Profit/loss for the period Total recognised income/expense for the year Employee share-option schemes Issue of share capital Non-controlling interests from acquistions Equity at end of period 3, ,878.9 Consolidated statement of cash flow Q1 Q Cash earnings Changes in work. cap./accr. items Cash flow from operations Capital expenditures Purch./sale of subs./assoc./investm Cash flow from investments Change in debt Equity transactions Cash flow from financing Change in cash Cash, start of period Cash, end of period Currency effects on cash and cash equivalents

13 Notes NOTE 1 General information and accounting policies Atea (the Group) consists of Atea ASA (the Company) and its subsidiaries. Atea ASA is a limited company incorporated and domiciled in Norway whose shares are listed on the Oslo Stock Exchange. These condensed consolidated interim financial statements ended 31 March 213 have been prepared in accordance with International Financial Reporting Standard (IFRS), IAS 34 Interim Financial Reporting. The condensed consolidated interim financial statements do not include all information and disclosures required in the annual financial statement, and should be read in accordance with the Group s Annual Report for 212, which has been prepared according to IFRS. The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements for the year ended 31 December 212 except the changes below. Changes in accounting policy and disclosures effective from 1 January 213: IAS 1 Presentations of items of other comprehensive income includes requirement to group other comprehensive income (OCI) into two categories; items that will be reclassified subsequently to profit or loss, and items that will not be reclassified to profit or loss. IAS 19 Employee benefits. The impact on the Group has been as follows: to eliminate the corridor approach and recognise all actuarial gains and losses in Other comprehensive income (OCI) as they occur; to immediately recognise all past service costs; and to replace interest cost and expected return on plan assets with a net interest amount that is calculated by applying the discount rate to the net defined benefit liability (asset). The effect of transition to IAS 19R is booked 1 January 213 and reflected in a new balance sheet at 31 December 212. The impacts of the amendments are enclosed in note 6. IFRS 13 Fair value measurement aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but provide guidance on how it should be applied where its use is already required or permitted by other IFRS standards. The amendments will not have any impacts for the Comprehensive Income or Statement of Financial Position for the Group. The Fair value measurements are enclosed in note 7. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss. Taxes includes both tax on continued operations and taxes related to Other comprehensive income. The Board confirms that these interim financial statements have been prepared on a going concern basis. This interim condensed consolidated financial information has not been subject to audit or review. As a result of rounding differences numbers or percentages may not add up to the total. 13

14 NOTE 2 Operating segment information Atea is a complete provider of hardware and software products, as well as related consulting and services. The Group has operations in Norway, Sweden, Denmark, Finland and the Baltics. For management purposes, the Group is organised into these geographical areas. The performances in these geographical areas are evaluated on a regular basis by Atea s Senior Management Group. In addition the Group operates Shared Services: Atea Logistics and Atea Global Services. Transfer prices between operating segments are on arm s length basis in a manner similar to transactions with third parties. Group costs represent expenses related to group and holding functions performed by management and other employees of Atea ASA. 14

15 Revenue Q1 Q1 Full Year % change 212 Norway 1, , % 6,353.4 Sweden 1, , % 6,637.5 Denmark 1, , % 5,729.6 Finland % 1,67.5 The Baltics % Group Shared Services % 3,514.3 Eliminations * ,56.5 Atea Group 5,84.8 4, % 2,93.3 EBITDA Q1 Q1 Full Year % change 212 Norway % Sweden % 21. Denmark % Finland % 23.6 The Baltics % 37.8 Group Shared Services % 34.4 Group cost % -3.2 EBITDA % EBITDA margin (%) 2.8% 3.4% 3.9% EBIT Q1 Q1 Full Year % change 212 Norway % Sweden % Denmark % Finland The Baltics Group Shared Services % 27.4 Group cost % Operating profit/loss (EBIT) % Financial income % 76.1 Financial expenses % Profit/(loss) before tax, continued operations % Revenue and contribution/margin Q1 Q1 Full Year % change 212 Product revenue 3, , % 16,51.8 Consulting and services revenue 1, , % 4,428.1 Total revenue 5,84.8 4, % 2,93.3 Gross contribution 1, , % 5,98. Product margin 12.7% 13.9% 12.9% Consulting and services margin 68.6% 68.7% 67.% Gross margin 25.% 25.8% 24.4% Quarterly revenue and contribution/margin Q1 Q2 Q3 Q4 Q Product revenue 3, , , ,67.8 3,963.7 Consulting and services revenue 1,46.2 1, ,15.7 1,253. 1,121.1 Total revenue 4, , ,45.5 6,32.9 5,84.8 Gross contribution 1, , , ,46.7 1,271.3 Product margin 13.9% 12.5% 13.% 12.5% 12.7% Consulting and services margin 68.7% 66.4% 67.3% 65.9% 68.6% Gross margin 25.8% 23.7% 25.4% 23.1% 25.% Note: All EBITDA figures are before share-based compensation and expenses/income related to acquisitions. *Most of Atea s internal sales are related to Group Shared Services, which consists of Atea Logistics and Atea Global Services. 15

16 NOTE 3 Business combinations The Group has acquired three companies during the first quarter of 213. The turnover and results from acquisition date to the end of the quarter for the new units is considered to be immaterial from a Group perspective. Exait AB The acquisition will strengthen Ateas market position in the Northern region of Sweden and scale up the service organization within this region considerably. Mobility Invest AS The acquisition of Itale AS through the acquisition of the holding company Mobility Invest AS is in line with Atea's strategy to gain a significant position in the mobile terminal market. The Group delivers both products and services in a rapidly growing market based on smartphones and tablets. Prezentaciju spektras UAB The acquisition will strengthen Atea s position within audio/video in Lithuania. The business combination of Prezentaciju spektras UAB was effected immediately before the Board approval of the quarterly report for Q Therefore it has not been possible to provide information related to fair value of acquired assets in the balance sheet, net assets acquired and net cash payment for the acquisition before the Q1 213 report was approved. NOK 5.6 million of the total estimated enterprise value of NOK 7.1 million has been entered as Other long term receivables in the balance sheet at 31 March 213. Goodwill from acquisitions The goodwill arises from a number of factors, such as expected synergies through combining a highly skilled workforce with obtaining market power, buying power, cost savings etc. The fair values have been determined on provisional basis because new information may occur. 16

17 Breakdown of the acquired net assets and goodwill in 213 is as follows: Exait AB Mobility Invest AS Total Acquisition date 21 Feb Feb 213 Country Sweden Norway Voting rights/ownership interest 1.% 1.% Acquisition cost: Consideration 1) Adjustment of cost price Liabilities assumed Direct costs associated with acquisitions Fair value of shares issued Total acquisition cost Net assets acquired at carrying value of equity (see table below) Identification of excess value: - Contracts and customer relationships Computer software and rights Fair value of tangible fixed assets Deferred tax Net excess value Fair value of net assets acquired, excluding goodwill Controlling ownership interests Non-controlling ownership interest Goodwill ) Consideration that is dependent on future results is recognised as an obligation based on the fair value at the time of acqusition. Assets and liabilities related to the acquisitions in 213 are as follows: Mobility Exait AB Invest AS Total Goodwill Computer software and rights Property, plant and equipment Inventories Advances to suppliers Trade receivables Revenues in excess of invoicing..5.5 Provisions for losses on receivables Other current receivables and investments Cash and cash equvalents Non-controlling ownership interests Deferred tax liabilities Interest-bearing long-term liabilities Trade payables Current interest-bearing liabilities Other current liabilities and provisions Net assets acquired Net cash payments in connection with the acquisitions are as follows: Mobility Exait AB Invest AS Total Considerations and costs in cash and cash equivalents Cash and cash equivalents in acquired companies Net cash payments for the acquisitions If all acquired entities had been consolidated from 1 January 212, the consolidated proforma income statements for YTD 213 would show revenue and profit as follows: YTD YTD Operating revenue 5, ,932. Operating profit/loss (EBIT)

18 NOTE 4 Related parties There are no significant agreements relating to transactions with related parties other than those stated in Note 25 in the Annual Report for 212. NOTE 5 Paid-in equity Number of shares Issued Treasury shares Share capital Issued Treasury shares Share premium Total paid-in equity Whole figures Whole figures At 1 January ,251,2-73,61 1, ,778.1 Issue of Share capital *) 849, At 31 March ,11,17-73,61 1, ,811.7 *) Issue of Share capital is related to Share options for the Management and selected employees. NOTE 6 Change in accounting policy due to applications of IAS 19R - Retirement benefit obligations In the consolidated interim financial statements for 213 the Group has applied IAS 19R retrospectively. Consequently, the Group has adjusted opening equity at 1 January 212 and the figures for 212 have been restated as if IAS19R had always been applied. Retirement benefit obligation Deferred tax assets Balance reported at 31 December ,834.8 Effect on application of IAS 19R Restated balance at 31 December ,815.8 Equity The effect on the Consolidated statement of Comprehensive income is as follows: There is no effect on the figures in Q1 213, because actuarial assumptions are collected at the year end. 212 Decrease of Employee benefits expense 2.1 Increase of tax on continuing operations -.6 Increase of profit/loss for the period from cont. operations 1.5 Other comprehensive income Remeasurement of defined benefit obligation 28. Income tax OCI relating to items that will not be reclassified to profit or loss -7.8 Increase of Other comprehensive income 2.2 Increase of Total comprehensive income for the period

19 NOTE 7 Classifications of financial instruments At 31 March 213 Loans and receivables Amortised cost Fair value 1) Financial assets Trade receivables 3, ,272.5 Other receivables 2) Derivative contracts Cash and cash equivalents Financial liabilities Interest-bearing long-term liabilities Other long-term liabilities 3) Trade payables 2, ,483.4 Interest-bearing current liabilities Derivative contracts.2.2 Other current liabilities 4) 1, , ) Book value is a reasonable estimate of fair value in cases where these numbers are identical. 2) Less prepaid expenses 3) Interest not charged, discounted amortised cost at 3M NIBOR at 31 March 213 assuming an average repayment period of 1 year. 4) Less provisions for restructuring and other provisions. NOK 13.5 million is related to forward-contract regarding purchases of remaining shares from non-controlling ownership interests in Atea Baltic UAB. 19

20 Holding Atea ASA Brynsalleen 2 Box 6472 Etterstad NO-65 Oslo Tel: Org.no investor@atea.com Norway Atea AS Brynsalleen 2 Box 6472 Etterstad NO-65 Oslo Tel: Org.no info@atea.no Sweden Atea AB Kronborgsgränd 1 Box 18 SE Kista Tel: +46 () Org.no info@atea.se Denmark Atea A/S Lautrupvang 6 DK-275 Ballerup Tel: Org.no info@atea.dk Finland Atea Oy Jaakonkatu 2 PL 39 FI-1621 Vantaa Tel: () Org.no customercare@atea.fi Lithuania Atea UAB Laisves pr. 3 LT-4215 Vilnius Tel: Org.no info@atea.lt Latvia Atea SIA Unijas iela 11a LV-139 Riga Tel: Org.no info@atea.lv Estonia Atea AS Tondi 17 EE Tallinn Tel: Org.no info@atea.ee Atea Logistics AB Smedjegatan 12 Box 159 SE Växjö Tel: +46 () Org.no customer.care@atea.se Atea Global Services SIA Skanstes Street 5 LV-113 Riga Tel: Org.no rigainfo@atea.dk