September 2016 Group Finance Manager, Chris Sørum

Transcription

1 September 2016 Group Finance Manager, Chris Sørum

2 Highlights Q Revenue of NOK 8,442 million, up 23.4% EBITDA* of NOK 215 million, up 36.9% Higher sales across all three lines of business Improved EBITDA* across all countries * Before share-based compensation, expenses related to acquisitions, and restructuring costs

3 This is Atea The market leader within IT infrastructure solutions and system integration in the Nordic and Baltic countries Key statistics NOK 28 billion revenue in 2015 (approx. EUR 3 billion) Largest IT infrastructure player by far in Nordic region, with 17% market share 25,000 customers, with 50% of revenue to public sector 6,800 employees across 89 locations in Nordic and Baltic regions 4,000 IT consultants and technicians, with more than 6,500 certifications

4 Our business IT infrastructure solutions Integrated IT solutions for organizations, with extensive service offering CUSTOMER VALUE Business processes Applications Infrastructure solutions/ middleware Infrastructure high-end products Infrastructure volume products Analyse Design Installation Service Operate Outsourcing & support CUSTOMER LIFE CYCLE

5 Nordic market stable and growing Target market has grown at a steady pace in Nordic region NOK billion CAGR = 2.5% Hardware Software Services Source: IDC, December 2015, adjusted for constant currency exchange rates

6 Atea financial performance Revenue (MNOK) EBITDA (MNOK) Revenue CAGR 8.5%* EBITDA CAGR 17.7%** Revenue EBITDA before SBC 0 * Estimated organic growth rate of 4.5% + acquisitions ** EBITDA adjusted for share-based compensation, expenses related to acquisitions, and restructuring costs

7 Atea s competitive advantages Strong competitive advantages in the Nordic and Baltic IT infrastructure markets through scale, breadth of competence, and presence in local markets Market leadership System integration Largest reseller in Nordic and Baltic region Strategic partner with major IT companies Scale drives purchasing power with suppliers Integration expert with key vendors and technologies IT trends strengthen Atea s role as a system integrator Local presence 89 offices across all regions Ensures access to IT purchasers and rapid customer support Very strong in public sector, with long frame agreements Shared services Shared service functions support regional sales and IT delivery organizations Shared investment and lower costs, through economies of scale

8 Market leadership Largest partner in Nordic region, and within the top 3 in Europe, for major global IT companies Global IT companies rely on Atea to access the Nordic and Baltic customer base Scale and negotiation power drive strong pricing advantages Strategic partnership with preferred vendors on key products and marketing initiatives Product coverage extends across all categories of IT infrastructure

9 System integration expertise Major trends in IT strengthen demand for Atea as system integrator Key trends Mobility Growth of smartphones/ tablets for workplace Consumerization Freedom to choose your own device ITaaS / Cloud New delivery models for products and services Collaboration Unified communication, video and sharing tools Big Data solutions Business intelligence, all things connected Growing complexity of IT infrastructure More devices with shorter lifecycles Exponential growth in data and processing New types of devices and operating systems Remote access to data and applications More complex collaboration networks Greater demands on communication More security threats Independent advisor with extensive product coverage Integration expert across many vendors and technologies Supports customers in implementing most appropriate IT solutions, and optimising their performance

10 Local market presence 89 offices in Nordic and Baltic countries, covering every major regional market Atea is always the «local vendor», with 25,000 customers across all regions Only systems integrator which can offer regionwide service agreements with short customer response times Office network ensures that Atea is in contact with key IT purchasing decision makers and is invited to participate in all major tenders Very strong coverage within public sector, representing 50% of Atea s revenue Atea holds key public frame agreements multi-year contracts with high renewal rates

11 Shared services Shared service functions create economies of scale when delivering IT to local markets Country organizations Denmark Norway Sweden Finland Baltics Local sales account management Local IT service deliveries eshop Logistics center Nearshoring center Leasing broker International Customer Center Shared services Efficient online portal for customer purchases (73% of transactions) Internal warehousing and distribution center (27 % of volumes) Low cost back office functions in Latvia Develops financing alternatives for customers with local banking partners Provides global delivery capabilities

12 Strategic opportunities Key strategic initiatives across Atea group SME ITaaS / Cloud Collaboration Big Data Service Platform Nearshoring Increase SME market share from 7% Represents 40% of Nordic market Expand IT as a Service offering Cloud solutions for customers, with integration of local data center and public cloud services Major opportunities in videoconferencing, mobility and unified communication solutions Tools for data management and analytics Internet of Things to drive huge growth in data Common service offering to promote cross-selling Improve efficiency of service delivery Utilize Riga office for backoffice support functions Reduce organization costs Sales initiatives Quickly adapt to the latest developments in IT and offer to the Nordic and Baltic regions Work in close partnership with the largest and most innovative IT companies Operating initiatives Continuously focus on cross-selling, cost and efficiency

13 Free cash flow* Record high Free Cash Flow* of MNOK 868 in 2015 (NOK 8.25 per share) Free Cash Flow has averaged 131% of Net profit after tax since FCF / Share * Free Cash Flow defined as Cash Flow from Operations, minus capex. Capital expenditures include assets acquired through financial leases.

14 Covenant Leverage covenant: Net Debt / EBITDA < 2.5. Seasonal fluctuations in debt level, with low point at the end of the year driven by strong cash generation in Q4. Net debt / EBITDA 2 1,6 1,7 1,8 1,5 1,4 1 0,9 0,8 0,5 0 Q115 Q215 Q315 Q415 Q116 Q216

15 Debt facilities Bank loan facilities MDKK 500, 5Y credit facility ( ), 5Y CIBOR + 140bp MNOK 1 421, short-term facility with MNOK AR as collateral, NIBOR + 100bp MNOK 400, short-term cash credit, NIBOR + 110bp MNOK 345, short-term money market line, NIBOR + 110bp Bond security MNOK 300, 5Y bond ( ), 3M NIBOR + 210bp Leasing MNOK 700 total facility Considerations Starting to prepare for l-t facilities that expire in June 2018 Value of more funding sources Value of having both listed stock and bond Increased information flow / visibility / transparency, to best valuation of Atea

16 Dividend and Credit Rating The Board of Directors of Atea has communicated a dividend policy to distribute over 70% of Atea s free cash flow (cash flow from operations after capex, including assets acquired through financial leases) as a dividend to shareholders. At the same time, Atea has maintained a stable investment grade (BBB-) shadow rating in the market since coverage was initiated with the Group s first bond issuance in The Board of Directors are committed to maintaining the IG rating and has set clear financial guidelines aligned with the financial covenant of Net debt / EBITDA < 2.5 and additionally a solvency ratio > 20%. The value of an investment grade rating is perceived as one of the most important strategic financial parameters for the Group.

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18 Appendix: Financial summary

19 Income Statement H1 actual Full Year actual Currency: MNOK Growth% Growth% Revenue , ,3 17,6 % , ,4 13,5 % Total products and services margin (%) 22,1 % 23,1 % -0,9 % 22,9 % 23,3 % -0,3 % Personnel costs 2 559, ,1 12,0 % 4 567, ,7 15,2 % Other operating expenses 484,7 431,8 12,3 % 884,1 793,8 11,4 % EBITDA (adjusted) 424,7 359,4 18,2 % 950,7 958,3-0,8 % EBITDA (adjusted) margin (%) 2,7 % 2,7 % 0,0 % 3,4 % 3,9 % -0,5 % Share based / acquisition / restructuring costs 27,6 10,4 166,4 % 26,9 29,0-7,1 % EBITDA 397,1 349,0 13,8 % 923,7 929,4-0,6 % Depreciation 208,3 192,6 8,2 % 409,4 345,6 18,5 % Operating profit (EBIT) 188,8 156,5 20,7 % 514,4 583,8-11,9 % EBIT (%) 1,2 % 1,2 % 0,0 % 1,8 % 2,4 % -0,5 % Net financial items -34,6-46,1-25,0 % -82,1-73,2 12,1 % Tax on continued operations 25,5 17,5 45,4 % 39,3 81,6-51,8 % Profit/(loss) for the period 128,8 92,9 38,7 % 393,0 429,0-8,4 %

20 Revenue Split H1 actual Full Year actual Currency: MNOK Growth% Growth% Total hardware revenue 8 217, ,0 13,1 % , ,6 13,8 % Total software revenue 4 464, ,6 32,6 % 6 074, ,2 13,2 % Products revenue , ,6 19,3 % , ,9 13,7 % Total services revenue 3 006, ,4 11,0 % 5 651, ,9 12,8 % Revenue , ,3 17,6 % , ,4 13,5 % Hardware margin (%) 13,5 % 13,3 % 0,2 % 13,1 % 13,0 % 0,1 % Software margin (%) 7,8 % 9,7 % -1,9 % 10,2 % 10,9 % -0,7 % Product margin (%) 11,5 % 12,2 % -0,7 % 12,3 % 12,4 % -0,1 % Total services margin (%) 66,9 % 65,8 % 1,1 % 64,8 % 65,5 % -0,7 % Total products and services margin (%) 22,1 % 23,1 % -0,9 % 22,9 % 23,3 % -0,3 %

21 Segment Revenue & EBITDA Currency: Local in million H1 Revenue Actual Actual Actual Organic Actual Actual Actual Organic Growth% Growth% Growth% Growth% Norway 3 612, ,5 8,3 % 8,3 % 94,7 79,8 18,8 % 18,8 % Sweden 6 253, ,1 13,5 % 13,3 % 177,7 145,4 22,2 % 21,8 % Denmark 3 312, ,8 8,1 % 8,1 % 103,0 109,1-5,6 % -5,6 % Finland 126,1 117,1 7,7 % 7,7 % 1,8 1,0 76,7 % 76,7 % Baltics 46,3 47,7-2,9 % -6,8 % 2,7 2,2 22,9 % -2,4 % Other -130,1-117,5-27,5-14,4 H1 EBITDA (adjusted) Atea Group , ,3 17,6 % 17,4 % 424,7 359,4 18,2 % 16,4 % Currency: Local in million Full Year Revenue Actual Actual Actual Organic Actual Actual Actual Organic Growth% Growth% Growth% Growth% Norway 7 268, ,5 6,8 % 2,5 % 193,0 275,5-30,0 % -32,1 % Sweden , ,0 11,3 % 11,7 % 355,1 284,1 25,0 % 25,8 % Denmark 6 398, ,2 10,3 % 0,2 % 304,6 326,5-6,7 % -18,7 % Finland 207,1 204,3 1,4 % 0,4 % 2,3 3,1-27,2 % -25,6 % Baltics 105,3 94,7 11,2 % 5,2 % 5,8 4,3 34,0 % 3,2 % Other -133,2-113,4-18,8-6,2 Full Year EBITDA (adjusted) Atea Group , ,4 13,5 % 9,2 % 950,7 958,3-0,8 % -7,5 %

22 Segment share of total H1 Revenue H1 EBITDA (adjusted) Currency: MNOK Actual Actual Share of total Share of total Actual Actual Share of total Share of total Norway 3 612, ,5 23,0 % 25,0 % 94,7 79,8 22,3 % 22,2 % Sweden 6 334, ,7 40,4 % 38,2 % 180,0 134,6 42,4 % 37,4 % Denmark 4 189, ,7 26,7 % 26,6 % 130,2 126,5 30,7 % 35,2 % Finland 1 188, ,7 7,6 % 7,6 % 16,9 8,8 4,0 % 2,4 % Baltics 436,4 412,2 2,8 % 3,1 % 25,9 19,3 6,1 % 5,4 % Other -72,8-68,5-0,5 % -0,5 % -23,0-9,5-5,4 % -2,6 % Atea Group , ,3 100,0 % 100,0 % 424,7 359,4 100,0 % 100,0 % Full Year Revenue Full Year EBITDA (adjusted) Currency: MNOK Actual Actual Share of total Share of total Actual Actual Share of total Share of total Norway 7 268, ,5 26,0 % 27,7 % 193,0 275,5 20,3 % 28,7 % Sweden , ,0 36,9 % 36,2 % 339,4 261,0 35,7 % 27,2 % Denmark 7 670, ,6 27,5 % 26,4 % 365,1 366,0 38,4 % 38,2 % Finland 1 852, ,2 6,6 % 6,9 % 20,3 26,1 2,1 % 2,7 % Baltics 941,7 791,6 3,4 % 3,2 % 51,6 36,0 5,4 % 3,8 % Other -133,2-113,4-0,5 % -0,5 % -18,8-6,2-2,0 % -0,6 % Atea Group , ,4 100,0 % 100,0 % 950,7 958,3 100,0 % 100,0 %

23 Balance Sheet Currency: MNOK 30. jun jun des des 2014 ASSETS Property, plant and equipment Deferred tax assets Goodwill Other intangible assets Other non-current receivables Non-current assets Inventories Trade receivables Other current receivables Cash and cash equivalents Current assets Total assets EQUITY AND LIABILITIES Equity Interest-bearing long-term liabilities Other non-current liabilities Deferred tax liabilities Non-current liabilities Trade payables Interest-bearing current liabilities Other current liabilities Current liabilities Total liabilities Total equity and liabilities

24 Cash Flow NOK in million H1 FY Profit before taxes Taxes paid Depreciation & amortisation Share based compensation Other corrections Cash earnings Change account receivables 537 1, Change inventory Change trade payables -1, Other changes in working capital Cash flow from operations , Capital expenditures Purch./sale of subs./assoc./investm Cash flow from investments Payment of dividends Other equity transactions Change in debt Cash flow from financing Net cash flow Cash start of period Currency effects on cash Cash end of period

25 Shareholding, June Top 20 Shareholders SYSTEMINTEGRATION APS STATE STREET BANK & TRUST CO FOLKETRYGDFONDET STATE STREET BANK AND TRUST CO RBC INVESTOR SERVICES TRUST JP MORGAN CHASE BANK, NA SKANDINAVISKA ENSKILDA BANKEN AB ODIN NORGE VPF NORDEA KAPITAL STATE STREET BANK AND TRUST CO JPMORGAN CHASE BANK NA, LONDON THE BANK OF NEW YORK MELLON VPF NORDEA AVKASTNING J.P. MORGAN CHASE BANK N.A. LONDON DANSKE INVEST NORSKE INSTIT. II BNP PARIBAS SEC. SERVICES S.C.A J.P. MORGAN CHASE BANK N.A. LONDON NORDEA BANK DANMARK A/S STATE STREET BANK AND TRUST CO KLP AKSJENORGE INDEKS Geographic Split Region/Country Shareholding % Nordics ,0 % US ,3 % UK ,7 % Continental Europe ,9 % Other ,1 % Total ,0 % Nordics US UK Continental Europe Other

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