Itera Asa · OSL:ITERA
Itera Asa — Q2 2013 Earnings Presentation
23 slides from Itera Asa's earnings presentation, Aug 22, 2013
Slide 1: Interim Report Second Quarter 2013
INTERIM REPORT SECOND QUARTER 2013 CEO ARNE MJØS CFO TORUNN HAVRE OSLO, 22 AUGUST 2013
Slide 2: Highlights in the second quarter
Highlights in the second quarter Revenues • Revenue increased by 11 % NOK million – MNOK 124 • EBITDA increased by 77 % – MNOK 13.3 million, 10.7 % margin • EBIT increased by 153 % – MNOK 8.0, 6.4 % margin • Cash flow from operations – MNOK 13.1, up from MNOK -6.0 • Improving operational performance
Slide 3: Financial Review
FINANCIAL REVIEW SECOND QUARTER 2013 22.08.2013
Slide 4: Key figures
Key figures 2013 2012 Change 2013 2012 Change 2012 Q2 Q2 YTD YTD FY Operating revenue MNOK 124.0 112.1 11 % 237.7 231.2 3% 438.2 EBITDA MNOK 13.3 7.5 77 % 20.7 16.9 22 % 25.9 EBITDA margin 10.7 % 6.7 % 8.7 % 7.3 % 5.9 % Operating profit (EBIT) MNOK 8.0 3.2 153 % 10.2 8.2 25 % 7.3 EBIT margin 6.4 % 2
Slide 5: Quarterly development
Quarterly development Operating revenue Employees NOK million End of period EBITDA EBIT NOK million NOK million SECOND QUARTER 2013 22.08.2013
Slide 6: Statement of income
Working days Q1 Q2 Q3 Q4 1H 2H Total 2013 61 60 66 62 121 128 249 Statement of income 2012 65 59 65 62 124 127 251 Diff -4 1 1 0 -3 1 -2 -7 % 2% 2% 0% -2 % 1% -1 % 2013 2012 Change 2013 2012 Change 2012 NOK Million Q2 Q2 % YTD YTD % FY Operating revenue 124.0 112.1 11 % 237.7 231.2 3% 438.2 Cost of
Slide 7: Statement of cash flow
Statement of cash flow 2013 2012 2013 2012 2012 NOK Million Q2 Q2 YTD YTD FY Cash flow from operations (EBITDA) 13.3 7.5 20.7 16.9 25.9 Change in balance sheet items -0.2 -13.5 -2.8 -16.1 -3.4 Net cash flow from operating activities 13.1 -6.0 17.9 0.8 22.5 Net cash flow from investment activities -1
Slide 8: Improving cash flow from operations
Improving cash flow from operations RTM cash flow from operations NOK million Strong improvement in rolling 12 months (RTM) cash flow from operations. SECOND QUARTER 2013 22.08.2013
Slide 9: Statement of financial position
Statement of financial position 2013 2012 Change 2012 NOK Million 30 Jun 30 June % 31 Dec Deferred tax assets 11 12 -11 % 13 Other intangible assets 18 22 -16 % 20 Fixed assets 30 24 24 % 27 Total non-current assets 59 58 2% 60 Work in progress 12 7 78 % 6 Accounts receivable 85 73 16 % 74 Other rec
Slide 10: Shareholder remuneration
Shareholder remuneration Shareholder remuneration 2004-2013: MNOK 249 Accounting year 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sum Dividend per share NOK 0.20 - 0.30 0.50 0.20 0.20 0.10 - 0.06 1.56 Share capital payback per share NOK - - 0.30 0.20 - - - - - 0.50 Sum NOK 0.20 - 0.60 0.70 0.20 0.2
Slide 11: Business Review
BUSINESS REVIEW SECOND QUARTER 2013 22.08.2013
Slide 12: Market environment
Market environment Market drivers • Digitalization and innovation drives Social Media growth Enhancing customer, employees and supplier communication, • Global sourcing is commonplace collaborations and interactions delivered as a component of most service offerings Mobile • Two-fold development in
Slide 13: Itera specializes in communication and technology
Itera is a company specializing in communication and technology. We combine our multidisciplinary strengths to gain deeper insight, explore new possibilities and create better solutions. SECOND QUARTER 2013 22.08.2013
Slide 14: Service offerings and key focus areas
Service offerings and key focus areas SECOND QUARTER 2013 22.08.2013
Slide 15: Long term profitable growth: Key enablers
Long term profitable growth: Key enablers Communication Larger projects 50 %+ of staff AND and revenue nearshore Technology visibility Target 2013 SECOND QUARTER 2013 22.08.2013
Slide 16: Strong development of larger projects and larger revenue per customer
Strong development of larger projects and larger revenue per customer • Top 10 customers up by 38 % in Q2 MNOK • Top 30 customers up by 31 % in Q2 Target • Top 10 customers represent 43 % of total revenue in Q2, up from 35 % in Q2 2012 NOK Million 2010 2011 2012 2013E Top 1 13 22 29 34 Top 3 39 52 6
Slide 17: Itera signs Big Data deal with Nordic Retail customer
Itera signs Big Data deal with Nordic Retail customer • A full-range Big Data solution to analyze vast amounts of retail transactions on mobile devices for a larger number of users – IBM’s Netezza data warehouse solution for large transaction volumes (Big Data) – MicroStrategy’s Mobile Business Inte
Slide 18: Increasing nearshore leverage
Increasing nearshore leverage • Nearshore ratio 26% in Q2 2013, Nearshore ratio % nearshore of all staff moving fast towards target of 50+ % • Customers are buying nearshoring services at a higher growth rate than local services • Mixed teams are increasing our price flexibility in addition to unlim
Slide 19: Creating ONE Itera brand and culture
Creating ONE Itera brand and culture increases our employer branding and reduces turnover SECOND QUARTER 2013 22.08.2013
Slide 20: Simplifying legal structure in Norway
Simplifying legal structure in Norway • The new legal structure will be effective from 1 Jan 2014 Itera Gazette AS • Simplify customer Itera agreements Itera Consulting AS Norge • Simplify cross-business AS processes, i.e. billing, joint projects etc. Itera Networks AS • Enable free flow of resource
Slide 21: Outlook
OUTLOOK SECOND QUARTER 2013 22.08.2013
Slide 22: Outlook
Outlook • Customer demand remains strong in all Nordic markets • Profitable growth and cash flow are key focus • Scaling up our nearshoring capability will continue to ensure future competitiveness • Larger projects and customers should gradually increase revenue visibility, efficiency and scalabili
Slide 23: Top 20 shareholders
Top 20 shareholders SECOND QUARTER 2013 22.08.2013