Atea Asa · OSL:ATEA
Atea Asa — Q4 2012 Earnings Presentation
49 slides from Atea Asa's earnings presentation, Feb 7, 2013
Slide 1: Q4 2012 presentation
February 7, 2013 Q4 2012 presentation Claus Hougesen, CEO
Slide 2: Group – Q4 2012 highlights
Group – Q4 2012 highlights • Revenue of MNOK 6,320.9, down 0.9% in constant currency ‒ Organic revenue down 2.8% in constant currency • EBITDA of MNOK 348.2, down 7.1% • EBITDA margin of 5.5%, down from 5.8% • Cash flow from operations of MNOK 1,130.2, up 8.4% • Net cash positive with MNOK 49.3 • Th
Slide 3: Group – 2012 key numbers
Group – 2012 key numbers MNOK 2012 2011 y-o-y Product revenue 16,502.2 16,102.1 2.5% Services revenue 4,428.1 4,125.7 7.3% Total revenue 20,930.3 20,227.8 3.5% Gross margin 24.4% 24.0% - EBITDA 822.1 871.1 -5.6% EBITDA-margin 3.9% 4.3% - EBIT 557.6 651.3 -14.4% EAT 508.2 600.8 -15.4% 3
Slide 4: Market update
Market update Q4 2012 organic growth vs. market growth 12,0% 10,0% 9,2% 8,0% 6,0% 4,0% 2,9% 2,0% 2,0% 0,0% -2,0% -1,6% -4,0% -2,4% -6,0% -4,2% -8,0% -10,0% -8,3% -8,3% HW SW Services Total IDC* Atea** * Preliminary market growth in constant currency in Nordics in Q4 2012; Source: IDC ** Organic grow
Slide 5: Software segment
Software segment Revenue and growth Gross profit and gross margin 1 600 +8.1% 180 10.9% 1 400 +16.1% 160 10.0% 1 200 140 11.1% 9.7% 120 1 000 11.9% +15.2% 100 12.4% MNOK MNOK 14.2% 800 80 15.1% +15.4% 600 60 400 40 200 20 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2011 2012 • Revenue of MNOK 1,501 up 8.1
Slide 6: Services segment
Services segment Revenue and growth Gross profit and gross margin 1 400 900 +5.3% 65.9% 800 63.6% 1 200 68.7% 66.4% +7.6% 67.3% +5.2% +12.0% 700 67.3% 67.2% 1 000 600 64.5% 800 500 MNOK MNOK 600 400 300 400 200 200 100 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2011 2012 • Revenue of MNOK 1,253 up 5.3% –
Slide 7: Hardware segment
Hardware segment Revenue and growth Gross profit and gross margin 4 500 600 4 000 13.5% -9.5% 500 13.2% 3 500 14.5% 14.8% 14.4% 3 000 +0.1% +4.5% +5.5% 400 13.7% 13.3% 12.7% 2 500 MNOK MNOK 300 2 000 1 500 200 1 000 100 500 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2011 2012 • Revenue of MNOK 3,566 down
Slide 8: Group – strong cash flow
Group – strong cash flow MNOK Q4 12 Q4 11 2012 2011 CF from operations 1,130.2 1,043.1 812.4 1,046.4 CF from capital expenditures -90.7 -53.8 -246.9 -178.1 CF from acquisitions 6.1 -110.1 -148.8 -179.5 CF from equity transactions 28.6 5.7 -450.8 -52.1 Net cash position 49.3 283.2 49.3 283.2 • Q4 ope
Slide 9: Cash conversion
Cash conversion • Operational cash flow on average constituted 108% of EBITDA from 2007 - 2012 • Average operational CAPEX 0.95% of revenue from 2007 - 2012 • Free cash flow on average constituted 84% of EBITDA from 2007 – 2012 9
Slide 10: Completed acquisitions
Completed acquisitions • Acquisitions within blue box in the Nordics and Baltics is part of the 30:15:1.8 plan • In 2012 Atea has completed 5 acquisitions with revenue of approx. MNOK 320 • In 2011 Atea completed 7 acquisitions with revenue of approx. MNOK 500 • In 2010 Atea completed 13 acquisition
Slide 11: Countries
Countries ATCR
Slide 12: Norway – strong margin
Norway – strong margin MNOK Q4 12 Q4 11 y-o-y 2012 2011 y-o-y Total revenue 1,921.8 2,044.0 -6.0% 6,353.4 5,809.3 9.4% EBITDA* 105.6 104.6 1.0% 275.4 257.8 6.8% EBITDA margin 5.5% 5.1% - 4.3% 4.4% - * Before share based compensation and acquisition costs • Q4 revenue of MNOK 1,921.8, down 6.0% - Pro
Slide 13: Denmark – strong performance
Denmark – strong performance MDKK Q4 12 Q4 11 y-o-y 2012 2011 y-o-y Total revenue 1,756.5 1,697.6 3.5% 5,705.1 5,512.6 3.5% EBITDA* 124.9 124.1 0.6% 280.9 272.5 3.1% EBITDA margin 7.1% 7.3% - 4.9% 4.9% - * Before share based compensation and acquisition costs • Q4 revenue of MDKK 1,756.5, up 3.5% -
Slide 14: Sweden – gaining market share
Sweden – gaining market share MSEK Q4 12 Q4 11 y-o-y 2012 2011 y-o-y Total revenue 2,377.6 2,383.1 -0.2% 7,727.9 7,546.8 2.4% EBITDA* 101.1 132.2 -23.5% 234.0 302.3 -22.6% EBITDA margin 4.3% 5.5% - 3.0% 4.0% - * Before share based compensation and acquisition costs • Q4 revenue of MSEK 2,377.6, down
Slide 15: Finland – strong Q4 margin
Finland – strong Q4 margin MEUR Q4 12 Q4 11 y-o-y 2012 2011 y-o-y Total revenue 57.6 64.5 -10.7% 215.0 220.4 -2.4% EBITDA* 2.4 2.5 -4.1% 3.2 6.1 -48.6% EBITDA margin 4.1% 3.8% - 1.5% 2.8% - * Before share based compensation and acquisition costs • Q4 revenue of MEUR 57.6, down 10.7% - Product revenu
Slide 16: Baltic – strong performance
Baltic – strong performance MEUR Q4 12 Q4 11 y-o-y 2012 2011 y-o-y Total revenue 26.8 21.3 26.0% 86.7 56.0 55.0% EBITDA* 2.1 1.2 69.8% 5.1 2.6 97.6% EBITDA margin 7.7% 5.7% - 5.8% 4.6% - * Before share based compensation and acquisition costs • Q4 revenue of MEUR 26.8, up 26.0% - Product revenue up
Slide 17: Ambition 2015
Ambition 2015 7.5:15:500 11:15:600 8:15:500 400:15:22 180:15:11 Local goals in local currencies 17
Slide 18: Cash conversion
Cash conversion • Operational cash flow on average constituted 108% of EBITDA from 2007-2012 • Average operational CAPEX 0.95% of revenue from 2007 - 2012 • Free cash flow on average constituted 84% of EBITDA from 2007 – 2012 18
Slide 19: Summary
Summary • Continued strong development within software and services • Challenging market conditions within hardware • Gaining market shares • Strong cash flow and maintaining financial strength to grow further • Board suggests to pay dividend of NOK 5.50 per share 19
Slide 20: Questions?
Questions? ATER ATER
Slide 21: Q4 2012 Fact pack
Q4 2012 Fact pack ATCR
Slide 22: Key figures – Group
Key figures – Group Q4 Q4 YTD YTD 2012 2011 2012 2011 Operating revenue (MNOK) 6 320,9 6 519,2 20 930,3 20 227,8 Contribution margin (%) 23,1 21,8 24,4 24,0 EBITDA (MNOK) * 348,2 374,9 822,1 871,1 EBITDA margin (%) 5,5 5,8 3,9 4,3 EBIT (MNOK) 268,7 311,4 557,6 651,3 Earnings per share (NOK) ** 2,83
Slide 23: Consolidated statement of financial position - Group (MNOK)
Consolidated statement of financial position - Group (MNOK) 31. dec. 31. dec. 1. Jan. (amounts in MNOK) Note 2012 2011 2011 ASSETS Property, plant and equipment 330,5 195,9 157,9 Deferred tax assets 572,8 505,5 472,1 Goodwill 2 832,5 2 833,8 2 757,7 Other intangible assets 330,3 334,8 341,2 Retireme
Slide 24: Employees - Group
Employees - Group Net commited HC (own) rollforward 31 Dec 2012 31 Dec 2011 Norway 1 604 1 488 Sweden 1 848 1 828 Denmark 1 488 1 420 Finland 339 335 Baltics 587 446 Logistics 178 178 Atea Global Services 207 130 Atea ASA 15 14 Atea Group 6 266 5 839 24
Slide 25: Financial performance actual – Segment (MNOK)
Financial performance actual – Segment (MNOK) (amounts in MNOK) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Norway 1 280,9 1 247,4 1 237,1 2 044,0 1 401,8 1 524,5 1 505,4 1 921,8 Sweden 1 565,4 1 662,1 1 247,2 2 041,1 1 462,7 1 721,5 1 419,7 2 033,6 Denmark 1 246,1 1 496,5 1 251,3 1 772,3 1 309,
Slide 26: Financial performance proforma – Segment (MNOK)
Financial performance proforma – Segment (MNOK) (amounts in MNOK) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Norway 1 358,1 1 320,0 1 312,1 2 086,1 1 421,0 1 546,2 1 510,9 1 921,8 Sweden 1 565,4 1 662,1 1 250,7 2 041,1 1 462,7 1 721,5 1 419,7 2 033,6 Denmark 1 274,1 1 511,8 1 271,7 1 789,2 1 32
Slide 27: Income statement actual - Group (MNOK)
Income statement actual - Group (MNOK) (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 2 893,5 2 719,9 2 683,2 3 940,7 2 897,3 2 841,6 2 831,5 3 566,4 Total software revenue 760,0 1 193,0 522,6 1 388,5 875,6 1 384,8 603,3 1 501,4 Products revenue 3 653
Slide 28: Income statement proforma - Group (MNOK)
Income statement proforma - Group (MNOK) (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 2 999,6 2 818,7 2 777,0 4 017,7 2 935,7 2 870,8 2 836,8 3 570,0 Total software revenue 767,0 1 196,0 526,3 1 393,5 878,2 1 385,9 603,6 1 501,4 Products revenue 3 7
Slide 29: Income statement actual – Norway (MNOK)
Income statement actual – Norway (MNOK) (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 780,2 712,4 790,9 1 302,2 866,4 894,2 1 004,8 1 128,8 Total software revenue 155,2 186,8 135,6 366,3 179,4 261,0 154,6 362,2 Products revenue 935,4 899,2 926,5 1 66
Slide 30: Income statement proforma – Norway (MNOK)
Income statement proforma – Norway (MNOK) (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 829,3 761,2 843,6 1 317,3 878,1 908,8 1 006,6 1 128,8 Total software revenue 161,2 188,5 138,5 368,2 181,2 262,1 155,0 362,2 Products revenue 990,6 949,7 982,0 1
Slide 31: Income statement actual – Denmark (MDKK)
Income statement actual – Denmark (MDKK) (amounts in DKK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 786,7 796,7 784,1 1 093,5 853,0 817,5 730,6 1 084,4 Total software revenue 131,6 344,4 140,6 264,4 144,6 372,9 138,6 321,7 Products revenue 918,2 1 141,1 924,7 1 3
Slide 32: Income statement proforma – Denmark (MDKK)
Income statement proforma – Denmark (MDKK) (amounts in DKK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 794,3 796,9 790,7 1 093,5 853,0 817,5 730,6 1 084,4 Total software revenue 131,9 344,9 140,7 265,3 145,4 372,9 138,6 321,7 Products revenue 926,3 1 141,8 931,4 1
Slide 33: Income statement actual – Denmark (MNOK)
Income statement actual – Denmark (MNOK) (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 825,5 835,9 817,1 1 141,7 870,4 831,0 723,5 1 075,6 Total software revenue 138,1 361,4 146,0 276,0 147,6 379,5 135,5 319,4 Products revenue 963,6 1 197,3 963,1 1 4
Slide 34: Income statement proforma – Denmark (MNOK)
Income statement proforma – Denmark (MNOK) (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 833,6 836,1 823,9 1 141,6 870,4 831,0 723,5 1 075,6 Total software revenue 138,4 361,9 146,2 276,9 148,3 379,5 135,5 319,4 Products revenue 972,0 1 198,0 970,1 1
Slide 35: Income statement actual – Sweden (MSEK)
Income statement actual – Sweden (MSEK) (amounts in SEK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 1 090,5 1 022,3 966,0 1 248,3 1 001,5 961,0 1 004,5 1 176,4 Total software revenue 319,5 502,7 181,3 673,3 304,9 640,5 255,2 731,1 Products revenue 1 410,0 1 525,0
Slide 36: Income statement proforma – Sweden (MSEK)
Income statement proforma – Sweden (MSEK) (amounts in SEK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 1 090,5 1 022,3 968,5 1 248,3 1 001,5 961,0 1 004,5 1 176,4 Total software revenue 319,5 502,7 181,3 673,3 304,9 640,5 255,2 731,1 Products revenue 1 410,0 1 525,
Slide 37: Income statement actual – Sweden (MNOK)
Income statement actual – Sweden (MNOK) (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 962,7 886,7 818,8 1 067,9 858,3 815,3 879,5 1 005,7 Total software revenue 282,0 437,6 150,0 578,1 261,3 544,9 226,9 626,0 Products revenue 1 244,8 1 324,3 968,7 1
Slide 38: Income statement proforma – Sweden (MNOK)
Income statement proforma – Sweden (MNOK) (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 962,7 886,7 820,9 1 067,9 858,3 815,3 879,5 1 005,7 Total software revenue 282,0 437,6 150,0 578,1 261,3 544,9 226,9 626,0 Products revenue 1 244,8 1 324,3 970,8
Slide 39: Income statement actual – Finland (MEUR)
Income statement actual – Finland (MEUR) (amounts in EUR million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 31,0 29,5 24,4 38,6 25,3 24,1 20,7 29,0 Total software revenue 22,8 23,5 11,0 20,1 37,1 24,6 9,4 22,9 Products revenue 53,8 53,1 35,4 58,7 62,4 48,7 30,1 52,0 Tota
Slide 40: Income statement proforma – Finland (MEUR)
Income statement proforma – Finland (MEUR) (amounts in EUR million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 31,0 29,5 24,4 38,6 25,3 24,1 20,7 29,0 Total software revenue 22,8 23,5 11,0 20,1 37,1 24,6 9,4 22,9 Products revenue 53,8 53,1 35,4 58,7 62,4 48,7 30,1 52,0 To
Slide 41: Income statement actual – Finland (MNOK)
Income statement actual – Finland (MNOK) (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 242,5 230,9 189,2 299,9 191,8 181,9 152,8 214,4 Total software revenue 178,3 184,2 84,9 156,0 281,3 185,8 66,7 168,8 Products revenue 420,8 415,1 274,1 455,9 473,1
Slide 42: Income statement proforma – Finland (MNOK)
Income statement proforma – Finland (MNOK) (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 242,5 230,9 189,2 299,9 191,8 181,9 152,8 214,4 Total software revenue 178,3 184,2 84,9 156,0 281,3 185,8 66,7 168,8 Products revenue 420,8 415,1 274,1 455,9 473
Slide 43: Income statement actual – the Baltics (MEUR)
Income statement actual – the Baltics (MEUR) (amounts in EUR million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 8,8 8,1 7,8 17,1 15,2 16,4 13,8 19,1 Total software revenue 0,8 2,9 0,7 1,6 1,0 1,8 2,6 3,4 Products revenue 9,7 11,0 8,5 18,7 16,2 18,2 16,5 22,5 Total servic
Slide 44: Income statement proforma – the Baltics (MEUR)
Income statement proforma – the Baltics (MEUR) (amounts in EUR million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 15,1 14,4 12,0 25,1 18,8 18,3 14,3 19,6 Total software revenue 0,9 3,0 0,8 1,9 1,0 1,8 2,6 3,4 Products revenue 16,0 17,5 12,8 27,0 19,7 20,2 17,0 23,0 Total
Slide 45: Income statement actual – the Baltics (MNOK)
Income statement actual – the Baltics (MNOK) (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 69,1 63,1 60,7 133,0 115,6 123,8 102,0 141,0 Total software revenue 6,6 22,8 5,6 12,5 7,2 14,0 19,6 25,3 Products revenue 75,6 85,8 66,3 145,5 122,9 137,8 121,
Slide 46: Income statement proforma – the Baltics (MNOK)
Income statement proforma – the Baltics (MNOK) (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 117,9 113,0 92,8 194,9 142,4 138,4 105,4 144,6 Total software revenue 7,2 23,5 6,3 14,8 7,2 14,0 19,6 25,3 Products revenue 125,1 136,5 99,1 209,7 149,6 152,
Slide 47: Income statement actual – Shared services (MNOK)
Income statement actual – Shared services (MNOK)* (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 781,1 763,5 895,0 977,7 762,9 793,6 921,3 889,4 Total software revenue 28,6 40,2 29,3 26,7 10,0 3,0 2,5 4,6 Products revenue 809,7 803,7 924,3 1 004,4 772
Slide 48: Income statement proforma – Shared services (MNOK)
Income statement proforma – Shared services (MNOK)* (amounts in NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Total hardware revenue 781,1 763,5 895,0 977,7 762,9 793,6 921,3 889,4 Total software revenue 28,6 40,2 29,3 26,7 10,0 3,0 2,5 4,6 Products revenue 809,7 803,7 924,3 1 004,4 7
Slide 49: ATCA
ATCA