Itera Asa · OSL:ITERA
Itera Asa — Q3 2014 Earnings Presentation
21 slides from Itera Asa's earnings presentation, Oct 29, 2014
Slide 1: Interim Report Third Quarter 2014
INTERIM REPORT THIRD QUARTER 2014 CEO ARNE MJØS CFO TORUNN HAVRE OSLO, 29 OCTOBER 2014
Slide 2: Highlights in the third quarter
Highlights in the third quarter Revenues • Revenue NOK million – MNOK 102; showing sequential growth after seasonality • EBITDA – MNOK 7.7; margin 7.6 % • EBIT – MNOK 2.5; margin 2.4 % EBIT • Revenue and profit are affected by NOK million Ukraine tensions in 1H 2014 • New Nearshore Development Cente
Slide 3: Profit was affected by revenue drop in 1H 2014 due to Ukraine tensions
Profit was affected by revenue drop in 1H 2014 due to Ukraine tensions but demand is picking up In Q3, the new Nearshore Development Center in Bratislava was ready for customers THIRD QUARTER 2014 29.10.2014 / 3
Slide 4: Financial Review
FINANCIAL REVIEW THIRD QUARTER 2014 29.10.2014 / 4
Slide 5: Key figures
Key figures First half year was affected by the geopolitical tensions in Ukraine but demand was picking up again in Q3 2014 THIRD QUARTER 2014 29.10.2014 / 5
Slide 6: Quarterly development
Quarterly development Operating revenue Employees NOK million End of period EBITDA EBIT NOK million NOK million Margin Margin THIRD QUARTER 2014 29.10.2014 / 6
Slide 7: Statement of income
Statement of income Profit is affected by extraordinary expenses for establishing new nearshore development center in Bratislava. THIRD QUARTER 2014 29.10.2014 / 7
Slide 8: Statement of cash flow
Statement of cash flow 12 month rolling operating cash Rolling 12-month operating cash flow amounted to MNOK 35. THIRD QUARTER 2014 29.10.2014 / 8
Slide 9: Statement of financial position
Statement of financial position 2014 2013 Change 2013 NOK Million 30 Sept 30 Sept % 31 Dec Deferred tax assets 8 10 -18 % 9 Other intangible assets 15 17 -13 % 17 Fixed assets 28 27 5% 28 Total non-current assets 52 54 -5 % 54 Work in progress 7 13 -48 % 16 Accounts receivable 68 66 3% 70 Other rece
Slide 10: Business Review
BUSINESS REVIEW THIRD QUARTER 2014 29.10.2014 / 10
Slide 11: Long term profitable growth: Key enablers
Long term profitable growth: Key enablers Larger projects Communication 50 %+ of staff and revenue AND nearshore visibility Technology Target THIRD QUARTER 2014 29.10.2014 / 11
Slide 12: Itera is a communication and technology company
Itera is a communication and technology company that provides innovative solutions THIRD QUARTER 2014 29.10.2014 / 12
Slide 13: Our multi site strategy provides agility, scalability and access to resources
Our multi site strategy provides agility, scalability and access to top notch resources • A Nordic full service provider with seamless nearshoring – Serving leading customers in fast growing industries • Flexibility of a hybrid model – Sourcing for value before volume by maximizing efficiency instea
Slide 14: Disruptive IT forces drive our service offerings and key focus areas
Disruptive IT forces drive our service offerings and key focus areas SOCIAL MOBILE BIG DATA CLOUD BIG DATA INTERNET OF THINGS THIRD QUARTER 2014 29.10.2014 / 14
Slide 15: New services are developed to move customers into cloud solutions
New services are developed to move customers into cloud solutions Cloud • Seizing the cloud assessment and strategy opportunity – Fast growth – New value-added services 24/7 service Cloud setup desk – Recurring revenue – New ecosystem – Shift from CAPEX to OPEX. Hybrid cloud Cloud management migrati
Slide 16: Development of larger projects and larger revenue per customer
Development of larger projects and larger revenue per customer • Top 5 customers are 27 % of total MNOK revenue, up from 25 % last year Future • Top 10 customers are 42 % of total revenue, up from 39 % last year • Top 30 customers are 62 % of total revenue, down from 63 % last year • Benefits: – Inc
Slide 17: Solid order intake in Q3, both in public and private sector
Solid order intake in Q3, both in public and private sector The order intake in Itera Norway was MNOK 45 in Q3 2014, while MNOK 33 and book-to-bill of 1.35 in September. THIRD QUARTER 2014 29.10.2014 / 17
Slide 18: Nearshore ratio development
Nearshore ratio development • Nearshore ratio 33 % in Q3, showing Nearshore ratio % nearshore of all staff a temporary flat development • Nearshore ratio target is more than 50 % • Mixed teams are increasing our price flexibility in addition to unlimited access to resources FTE: Full time employee T
Slide 19: Outlook
OUTLOOK THIRD QUARTER 2014 29.10.2014 / 19
Slide 20: Outlook
Outlook • Customer demand remains strong in all Nordic markets • Profitable growth and cash flow are key focus areas • New Nearshore Development Center inside EU will balance the risks to Ukraine tensions • Larger projects and customers should gradually increase revenue visibility, efficiency and sc
Slide 21: Top 20 shareholders
Top 20 shareholders THIRD QUARTER 2014 29.10.2014 / 21