FOURTH QUARTER 2012 INTERIM REPORT CEO ARNE MJØS CFO TORUNN HAVRE OSLO, 27TH FEBRUARY 2013.

FOURTH QUARTER 2012

INTERIM REPORT

CEO ARNE MJØSCFO TORUNN HAVRE

OSLO, 27TH FEBRUARY 2013

2012 IN BRIEF

1. Larger projects and clients

2. Increasing cost efficiency

3. Improvement in profitability and operational cash flow

+85%Top 1 customers growth


50%Nearshore share of Top 10 customers

22%Nearshore share of employees


-3%Growth in PEX per employee

7 MNOK

EBIT

26 MNOK

EBITDA

23 MNOK

Net operational cashflow

10.04.23FOURTH QUARTER 2012 2

HIGHLIGHTS IN THE FOURTH QUARTER

• Revenue– NOK 113 million, down -7 %– Net revenues down -1 %.

• EBITDA– NOK 6.8 million

• EBIT– NOK 1.7 million

• One-offs– Profit is impacted by NOK -1.4

million due to change in account principle

• Improving operating performance– Larger clients and projects with

higher revenue visibility – Improving utilization– Increasing share of nearshore

RevenuesNOK million

EBITNOK million


FINANCIAL REVIEW


KEY FIGURES

Profit is charged by one-off items of NOK 4.2 million in 2H, of which NOK 1.4 million in Q4 due to changes in account principles. Compared to last year, profit is improving quarter over quarter.

2012 2011 Change 2012 2011 Change

Q4 Q4 YTD YTD

Operating revenue MNOK 113,3 121,4 -7 % 438,3 431,1 2 %EBITDA MNOK 6,8 -0,9 866 % 25,9 14,6 78 %EBITDA margin 6,0 % -0,7 % 5,9 % 3,4 %Operating profit (EBIT) MNOK 1,7 -4,9 135 % 7,3 -1,5 576 %EBIT margin 1,5 % -4,0 % 1,7 % -0,4 %Profit before taxes MNOK 1,9 -5,6 134 % 6,8 -2,2 411 %Profit for the period MNOK 1,4 -2,9 147 % 4,9 0,6 690 %

Net cash flow from operations MNOK 17,7 13,3 33 % 22,9 5,2 340 %Cash and cash equivalents MNOK 29 21 37 % 29 21 37 %Equity ratio 41 % 40 % 41 % 40 %

Employees at end of period 428 461 -7 % 428 461 -7 %


STATEMENT OF INCOME

Gross profit (net revenues) increased 5 % in 2012 while total operating expenses remained at the previous year’s level.

2012 2011 Change 2012 2011 ChangeNOK Million Q4 Q4 % YTD YTD %Operating revenue 113,3 121,4 -7 % 438,3 431,1 2 %

Cost of sales 22,9 29,6 -23 % 80,2 91,7 -13 %Personnel expenses 71,5 77,1 -7 % 281,9 274,5 3 %Depreciation 5,1 4,0 27 % 18,6 16,1 15 %Other operating expenses 12,0 15,5 -23 % 50,2 50,3 0 %Total operating expenses 111,6 126,3 -12 % 430,9 432,7 0 %

Operating profit (EBIT) 1,7 -4,9 135 % 7,3 -1,5 576 %

Net financial income 0,1 -0,7 -0,6 -0,6Profit before taxes 1,9 -5,6 134 % 6,8 -2,2 411 %

Income taxes 0,5 -2,7 119 % 1,9 -2,8 168 %Net profit for the period 1,4 -2,9 147 % 4,9 0,6 690 %


STATEMENT OF FINANCIAL POSITION2012 2011 Change

NOK Million 31 Dec 31 Dec %

Deferred tax assets 12 14 -13 %Other intangible assets 20 21 -4 %Fixed assets 27 27 0 %Total non-current assets 59 62 -4 %

Work in progress 6 2 264 %Accounts receivable 74 72 3 %Other receivables 9 18 -49 %Bank deposits 29 21 37 %Total current assets 118 112 5 %

Total assets 177 174 2 %

Total equity 72 69 5 %

Non-current liabilities 12 9 37 %

Accounts payable 18 15 17 %Public duties and tax payables 25 31 -20 %Other short-term liabilities 50 50 0 %Total current liabilities 93 97 -4 %

Total equity and liabilities 177 174 2 %

Equity ratio of 40.8% compared to 39.6 % in 2011


STATEMENT OF CASH FLOW

Strong improvement in operational cash flow in 2012.

2012 2011 2012 2011NOK Million Q4 Q4 FY FY

Cash flow from operations (EBITDA) 6,8 -0,9 25,9 14,6Change in balance sheet items 10,9 14,2 -3,0 -9,4Net cash flow from operating activities 17,7 13,3 22,9 5,2

Net cash flow from investment activities -4,1 -5,4 -17,4 -24,6

Purchase of own shares 0,0 0,0 0,0 -0,3New borrowing 1,5 2,5 6,3 9,7Borrowings repaid -1,2 -0,5 -4,0 -1,1External dividend paid 0,0 0,0 0,0 -8,2Net cash flow from financing activities 0,3 1,9 2,3 0,2

Net change in bank deposits and cash 14,0 9,8 7,8 -19,2

Bank deposits at the end of the period 28,8 21,0 28,8 21,0

Net operating cash flow


QUARTERLY DEVELOPMENT

EmployeesEnd of period

Operating revenueNOK million

EBITDANOK million

EBIT NOK million


STRATEGY UPDATE


MARKET ENVIRONMENT

• Digitalization and innovation drives growth

• Global sourcing is now commonplace delivered as a component of most service offerings

• Two-fold development in pricing– Continued pressure in basic

services through increasing global sourcing

– Prices for high value added services are increasing moderately

Market drivers


Itera is a communication and technology company that creates new

and better solutions for businesses and the future of people


ONE ITERA

Business consulting and communication

Business UnitEVP Kristian Enger

TechnologyconsultingBusiness Unit

EVP Anders H. Lier

Managedservices

Business UnitEVP Jon Erik Høgberg

Business development

Strategic accountsTBA

Group FunctionsCFO Torunn Havre

CEOArne Mjøs

Unified delivery and NearshoreBusiness Unit

EVP Igor Mendzebrovski

Itera Gazette Itera Consulting NOR

Itera Consulting SWE

Itera Consulting DK

Itera Networks NOR

Itera Networks SWE

Itera Offshoring Services

Organizational structure that supports the logical flow of service offerings

Business Development unit for strategic corporate accounts

One service offerings catalogue across all units

Simplifying brand building and communication

Unifying processes, methodology and systems

Cicero ConsultingCompendia


/ 10.04.23FOOTER / 14/ 10.04.23FOOTER / 14

SERVICE OFFERINGS

Operations

Insight and

Strategy

Consulting

Conceptand

Design

SystemDevelopment

Testing

INNOVATION

/ 10.04.23FOOTER / 15

Innovation

BusinessIntelligence

CloudBanking and Insurance Distributions Solutions

Collaboration

ServiceDesign

KEY FOCUS AREAS

LARGER CUSTOMER ENGAGEMENTS AND IMPROVING COST EFFICIENCY

• Top 10 customers up by 36% in Q4• Top 30 customers up by 34% in Q4

– 21 customers show 89% growth in average

– 9 customers show -29% growth in average

• 50% of Top 10 customers are buying nearshoring services at a higher growth rate than local services– Blended rate (onshore and nearshore) is

increasing our price flexibility in addition to unlimited access to resources

– Personnel expenses per employee is down by -6 % in Q4.

Nearshore ratio

Top 3 customers


OUTLOOK


OUTLOOK

• Customer demands remain 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 scalability

• Itera makes no forecasts


TOP 20 SHAREHOLDERS


FOURTH QUARTER 2012 INTERIM REPORT CEO ARNE MJØS CFO TORUNN HAVRE OSLO, 27TH FEBRUARY 2013.

Documents

Transcript of FOURTH QUARTER 2012 INTERIM REPORT CEO ARNE MJØS CFO TORUNN HAVRE OSLO, 27TH FEBRUARY 2013.