Atea ASA · OSL:ATEA
Atea ASA — Q4 2017 Earnings Presentation
38 slides from Atea ASA's earnings presentation, Feb 7, 2018
Slide 1: Q4 2017 Presentation
Q4 2017 PRESENTATION 7 FEBRUARY 2018
Slide 2: Highlights – Q4 2017
Highlights – Q4 2017 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
Slide 3: Financial summary
Financial summary Strong growth in EBIT, as revenue grows faster than operating expenses CURRENCY: MNOK Q4 17 Q4 16 Growth Revenue 10,015 9,096 10.1% • Solid revenue growth across all lines of business Gross profit 2,128 1,966 8.2% • Reduced GM% due to growth in % margin 21.2% 21.6% -0.4% sales of l
Slide 4: Norway
Norway Rapid EBIT growth, based on higher revenue and lower personnel costs REVENUE EBIT +12.8% +28.6% 119 Product revenue +14.5% 2,762 2,448 NOK in million 92 Service revenue +6.0% NOK in million Gross profit +6.0% Operating expenses +1.5% Q4 16 Q4 17 Q4 16 Q4 17
Slide 5: Sweden
Sweden Very strong growth in revenue, gross profit and EBIT REVENUE EBIT +12.5% +16.8% Product revenue +13.1% 3,842 144 3,417 123 Service revenue +8.8% SEK in million SEK in million Gross profit +12.4% Operating expenses +11.5% Q4 16 Q4 17 Q4 16 Q4 17
Slide 6: Denmark
Denmark Lower revenue partly offset by reduced personnel expenses REVENUE EBIT -8.1% -21.3% Product revenue -9.0% 2,108 107 1,938 84 Service revenue -4.6% DKK in million DKK in million Gross profit -8.5% Operating expenses -4.5% Q4 16 Q4 17 Q4 16 Q4 17
Slide 7: Finland
Finland Solid revenue growth, improved gross margins and lower operating expenses REVENUE EBIT +5.0% +156.4% Product revenue +5.0% 65 2.2 62 Service revenue +5.3% EUR in million EUR in million Gross profit +10.6% 0.8 Operating expenses -2.9% Q4 16 Q4 17 Q4 16 Q4 17
Slide 8: Baltics
Baltics Revenue growth accelerates based on large projects and contracted services REVENUE EBIT +14.7% +12.1% Product revenue +12.1% 44 1.6 1.4 39 EUR in million Service revenue +27.0% EUR in million Gross profit +12.3% Operating expenses +12.3% Q4 16 Q4 17 Q4 16 Q4 17
Slide 9: Cash flow from operations
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 Positive net cash balance of NOK in million MNOK 102 at year end 189 -321 -395 Q4 16 Q
Slide 10: Summary – Q4 2017
Summary – Q4 2017 Record high revenue, operating profit and operating cash flow REVENUE Revenue of NOK 10.0 billion, up EBITDA EBITDA of NOK 488 million, up 7.6% 10.1% EBIT Cash flow from operations of NOK 1,765 EBIT of NOK 392 million, up 9.6% CASH FLOW million, which is the same level as last year
Slide 11: Full Year 2017 financial performance
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) EBIT (MNOK) 35,000 799 800 32,438 30,000 Revenue growth of 10.1% per year since reorganization in start-2014 600 25,000 22,096 EBIT growth of 22.5% per
Slide 12: Performance targets and results
Performance targets and results Financial Objective 2017 Results Organic growth in excess of market Growth of 4.4% in constant currency, in line with market growth* Achieve 20%+ market share through organic growth and Estimated market share of 18% selective acquisitions Growth in profit margin EBIT
Slide 13: Strategic initiatives to improve profitability
Strategic initiatives to improve profitability STRENGTHEN CAPABILITIES IN HIGHER VALUE ADDED PRODUCTS AND SERVICES COUNTRY INITIATIVES LEVERAGE GROUP FUNCTIONS TO IMPROVE MARGINS TO REDUCE OPERATING COST AND PRODUCTIVITY Supply chain Service growth Nearshoring Security Service efficiency Group IT Hy
Slide 14: Slide 14
Slide 15: Strategic initiatives to strengthen capabilities
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
Slide 16: Analytics
Analytics Data Science & Business Analytics Descriptive, Diagnostic, Predictive, Prescriptive to pian a co , monitor the busin: ict the future, and change the o etain, satisfy. customers Mitigate and manage ris! ase operational efficiency ve Innovation wit! Analytics Scenarios lomer profitability al
Slide 17: Atea digital platform
Atea digital platform Atea Cloud IBM Cloud / Azure Fog Computing Secure communication IoT platform Big Data and Analytics Visualization Integrations Welfare City Buildings Smart municipalities Atea hosted cloud
Slide 18: Use cases
Use cases
Slide 19: A digital platform for subscription and consumption based enablement
A DIGITAL PLATFORM FOR SUBSCRIPTION AND CONSUMPTION BASED ENABLEMENT
Slide 20: What AppXite is helping to achieve
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 busine
Slide 21: Specialists in IT infrastructure
AICR Specialists in IT infrastructure
Slide 22: Q4 2017 Fact Pack
ATCR Qe2oi7 FACT PACK
Slide 23: Highlights - Group
Highlights - Group Q4 Q4 Full year Full year NOK in million 2017 2016 2017 2016 Group revenue 10,015 9,096 32,438 31,188 Gross margin (%) 21.2% 21.6% 22.3% 22.2% EBIT 392 358 799 677 EBIT margin (%) 3.9% 3.9% 2.5% 2.2% Net profit 265 290 543 512 Earnings per share (NOK) 2.49 2.75 5.10 4.87 Diluted e
Slide 24: Consolidated statement of financial position - Group
Consolidated statement of financial position - Group NOK in million 31 Dec 2017 31 Dec 2016 ASSETS Property, plant and equipment 628 682 Deferred tax assets 487 563 Goodwill 3,845 3,658 Other intangible assets 273 294 Investment in associated companies 12 0 Other long-term receivables 6 7 Non-curren
Slide 25: Full-time employees - Group
Full-time employees - Group FTEs, end of period 31 Dec 2017 31 Dec 2016 Norway 1,573 1,558 Sweden 2,248 2,077 Denmark 1,475 1,580 Finland 318 336 Baltics 678 736 Logistics 222 231 Atea Global Services 381 355 Atea ASA 9 9 Atea Group 6,904 6,882
Slide 26: Financial performance actual – Segment
Financial performance actual – Segment NOK in million Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Norway 1,730.9 1,881.6 1,769.8 2,448.2 1,734.8 1,910.0 1,863.6 2,762.4 Sweden 2,878.9 3,456.0 2,373.3 3,193.5 2,690.0 3,408.7 2,521.8 3,758.6 Denmark 1,785.7 2,403.8 1,714.9 2,578.4 2,010.8 2,257.7
Slide 27: Income statement actual - Group (NOK million)
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 4,011.9 4,205.7 4,129.7 5,464.3 4,049.9 4,085.5 4,067.0 5,840.1 Software revenue 1,766.8 2,697.6 932.5 2,013.7 1,839.4 2,789.5 1,131.4 2,431.0 Products revenue 5,778.7 6,903.
Slide 28: Income statement actual – Norway (NOK million)
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 936.3 1,090.3 1,108.5 1,525.2 977.2 1,055.7 1,147.9 1,745.9 Software revenue 359.8 347.8 253.0 451.3 313.2 405.8 280.9 516.7 Products revenue 1,296.1 1,438.0 1,361.4 1,976.5
Slide 29: Income statement actual – Denmark (DKK million)
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 820.3 903.2 891.6 1,320.2 965.3 782.8 756.4 1,105.4 Software revenue 225.5 628.9 134.7 338.7 319.1 643.4 188.6 404.0 Products revenue 1,045.8 1,532.1 1,026.4 1,658.9 1,284.
Slide 30: Income statement actual – Denmark (NOK million)
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 1,047.3 1,132.5 1,113.4 1,618.4 1,166.4 990.8 952.4 1,418.0 Software revenue 288.0 792.7 165.0 411.6 385.6 802.1 241.4 521.2 Products revenue 1,335.3 1,925.2 1,278.4 2,030.
Slide 31: Income statement actual – Sweden (SEK million)
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 1,591.3 1,582.9 1,590.9 1,858.7 1,518.7 1,619.5 1,610.4 2,057.9 Software revenue 743.2 1,329.3 436.6 1,015.1 819.8 1,375.1 493.2 1,193.6 Products revenue 2,334.5 2,912.2 2,0
Slide 32: Income statement actual – Sweden (NOK million)
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 1,625.3 1,590.4 1,554.1 1,736.7 1,435.3 1,565.8 1,574.6 2,012.9 Software revenue 759.1 1,340.5 411.9 950.2 774.8 1,324.2 491.3 1,167.2 Products revenue 2,384.5 2,930.9 1,966
Slide 33: Income statement actual – Finland (EUR million)
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 28.7 26.2 23.3 35.9 38.4 35.4 26.6 37.8 Software revenue 36.8 21.7 9.4 19.0 39.7 24.6 10.8 19.9 Products revenue 65.5 48.0 32.7 55.0 78.2 60.1 37.4 57.7 Total services reve
Slide 34: Income statement actual – Finland (NOK million)
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 273.4 244.3 215.7 327.2 345.3 332.7 249.9 361.9 Software revenue 350.2 200.9 85.9 171.2 356.8 233.9 103.2 193.2 Products revenue 623.5 445.2 301.6 498.4 702.1 566.5 353.1 5
Slide 35: Income statement actual – Baltics (EUR million)
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 12.5 13.9 14.4 27.4 12.8 14.1 14.6 29.4 Software revenue 5.0 2.5 2.4 4.3 1.9 4.0 2.3 6.2 Products revenue 17.5 16.4 16.8 31.7 14.7 18.1 16.9 35.5 Total services revenue 6.1
Slide 36: Income statement actual – Baltics (NOK million)
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 118.9 129.9 133.8 250.9 115.0 131.8 136.6 277.8 Software revenue 47.9 22.8 22.0 39.3 17.5 37.1 21.8 58.3 Products revenue 166.7 152.7 155.8 290.2 132.4 168.9 158.4 336.2 To
Slide 37: Income statement actual – Shared services (NOK million)
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 1,032.0 1,071.1 1,146.4 1,300.5 971.1 1,035.9 1,161.9 1,349.0 Software revenue 2.7 2.5 1.2 2.1 1.2 1.9 2.9 2.4 Products revenue 1,034.7 1,073.7 1,147.6 1,302.6 972.
Slide 38: Specialists in IT infrastructure
AICR Specialists in IT infrastructure