Q2 2019 PRESENTATION 12 July 2019 Highlights Q2 2019 Higher - PowerPoint PPT Presentation

Q2 2019 PRESENTATION 12 July 2019

Highlights – Q2 2019 Higher revenue and EBIT across all markets, driven by rapid growth in software sales and lower operating expenses Revenue of NOK 9.5 billion (NOK 9.1 billion in Q2 2018) ‒ Revenue growth of 4.3% ‒ Software sales grow by 18.4% EBIT of NOK 145 million (NOK 126 million in Q2 2018) ‒ EBIT growth of 14.3% ‒ Based on higher revenue and lower operating expense compared with last year Operating cash flow of NOK 873 million ‒ Net debt of MNOK 289 at the end of Q2

Norway Solid growth in revenue and EBIT, based on higher sales of software and services REVENUE EBIT +9.1% +8.7% Product revenue +6.2% 71 2,178 65 2,004 Service revenue +16.3% NOK in million NOK in million Gross profit +3.4% Operating expenses +2.6% Q2 18 Q2 19 Q2 18 Q2 19

Sweden Higher sales of software and services drive strong EBIT growth REVENUE EBIT +12.3% +2.7% Product revenue +2.2% 4,347 130 4,234 116 Service revenue +5.3% SEK in million SEK in million Gross profit +3.4% Operating expenses +1.9% Q2 18 Q2 19 Q2 18 Q2 19

Denmark EBIT improves from last year, as revenue recovers and opex falls REVENUE EBIT +4 MDKK +1 MDKK Product revenue +4.7% 1,797 1,798 Q2 18 Q2 19 Service revenue -17.4% DKK in million DKK in million Gross profit -8.9% Operating expenses -9.1% -30 -34 Q2 18 Q2 19

Finland Rapid growth in revenue and EBIT, based on higher sales of products REVENUE EBIT +15.8% +15.4% Product revenue +16.8% 77 1.3 67 Service revenue +2.9% 1.1 EUR in million EUR in million Gross profit +18.7% Operating expenses +19.0% Q2 18 Q2 19 Q2 18 Q2 19

Baltics High demand for services drives strong revenue and EBIT growth REVENUE EBIT +83.6% +11.1% Product revenue +8.4% 30 0.7 27 Service revenue +17.5% EUR in million EUR in million 0.4 Gross profit +11.7% Operating expenses +7.7% Q2 18 Q2 19 Q2 18 Q2 19

Net debt Net debt of NOK -289 million at the end of Q2 2019 (Net Debt / EBITDA of 0.25*) Cash flow from operations of NOK 873 million during Q2 2019 1,926 1,595 Cash flow is highly concentrated in Q4 based on seasonal fluctuations in NOK in million working capital balance throughout year 620 Securitization program implemented from end-2018 to offset working capital 289 movements, and stabilize net debt 17 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 * Net debt and EBITDA as defined in Atea’s loan covenants. Net debt consists of interest-bearing liabilities, less cash. Net debt excludes ROU leases recognized as liabilities due to adoption of IFRS 16 (e.g., facilities rental). EBITDA for last four quarters, adjusted for acquisitions.

Overview SKI agreements Non-binding frame agreements Agreement No. Deliveries Grant date Years MDKK Contractor 02.02 PC and accessories 11.2018 2 + 2 600 Comm2ig and others 02.06 Software 03.2017 3 + 1 2,300 ATEA and others 02.12 Print 04.2016 4+1 400 ATEA and others 02.17 IT consulting 01.2018 2+2 300 ATEA and others 02.18 IT solutions and projects 05.2019 2+2 600 ATEA and others 02.19 SAAS Cloud 06.2019 2+1+1 1,600 ATEA and others 02.22 Datacenter 11.2018 2+1+1 900 ATEA and others Binding frame agreements Agreement No. Deliveries Grant date Years MDKK Contractor 50.03 Server & storage 05.2019 2+1+1 700 ATEA and others 50.07 Networking - - 1,700 - 50.10 Print and related services 09.2019 600 ATEA and others 50.40 PC and accessories 09.2018 2+1+1 1,700 Dustin 50.43 Tablets 05.2018 2+1 500 Comm2ig 50.49 Software - Municipality 04.2019 3 540 ATEA 50.49 Software - State 06.2019 3 750 ATEA 50.70 Audio Video equipment 01.2018 2+1+1 300 ATEA There are other frame agreements with SKI not listed above, considered not to be in scope for Atea.

AppXite - revenue & EBIT development Revenue 2019 Revenue 2019 incl. forecast H2 900 254 243 800 226 723 EUR in thousand 203 188 186 EUR in thousand 577 January February March April May June AC Q1 AC Q2 FC Q3 FC Q4 EBIT 2019 Atea and external revenue January February March April May June 140 120 EUR in thousand 100 EUR in thousand 80 -71 60 -86 40 20 -113 -117 0 -129 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 -137 Atea External

New Atea logistics center opened in June 2019 210.000 cubic meters - 21.000 square meters of highly automated IT logistics center More than doubling production capacity with limited increase of resources Highest security level Carbon neutral production One-off P/L impact estimated to -7 MNOK in Q2

Summary – Q2 2019 Cash flow from operations of NOK 873 million REVENUE CASH FLOW Revenue of NOK 9.5 billion, up 4.3% (NOK -302 million in Q2 2018) Net debt of NOK 289 million EBIT NET DEBT EBIT of NOK 145 million, up 14.3% (0.25 x EBITDA*) * Net debt and EBITDA as defined in Atea’s loan covenants. EBITDA for last 4 quarters, adjusted for acquisitions.

Q2 2019 FACT PACK

Highlights – Group Q2 Q2 H1 H1 Full year NOK in million 2019 2018 2019 2018 2018 Group revenue 9,487 9,099 18,626 17,439 34,709 Group margin 1,905 1,888 3,844 3,726 7,536 Gross margin (%) 20.1% 20.8% 20.6% 21.4% 21.7% EBIT 145 127 261 250 690 EBIT margin (%) 1.5% 1.4% 1.4% 1.4% 2.0% Net profit 97 84 177 171 467 Earnings per share (NOK) 0.89 0.78 1.62 1.58 4.33 Diluted earnings per share (NOK) 0.88 0.77 1.60 1.56 4.26 Cash flow from operations 873 -302 392 -1,143 946 Free cash flow 795 -370 225 -1,291 641 30 Jun 2019 30 Jun 2018 31 Dec 2018 Net financial position** -289 -1,595 -17 Liquidity reserve** 2,636 1,410 2,655 Working capital -1,576 -115 -1,699 Working capital in relation to annualized revenue (%) -4.2% -0.3% -4.9% Equity ratio** (%) 24.0% 23.9% 22.0% Number of full-time employees 7,419 7,205 7,385

Consolidated statement of financial position – Group (1) NOK in million 30 Jun 2019 30 Jun 2018 ASSETS Property, plant and equipment 542 485 Right-of-use assets 840 112 Deferred tax assets 409 474 Goodwill 3,809 3,706 Other intangible assets 232 239 Long-term subleasing receivables 164 0 Other long-term receivables 41 18 Non-current assets 6,037 5,033 Inventories 1,046 789 Trade receivables 3,907 5,405 Other receivables 1,639 1,652 Short term subleasing receivables 105 0 Cash and cash equivalents 738 59 Current assets 7,435 7,905 Total assets 13,473 12,939 EQUITY AND LIABILITIES Share capital and premium 430 362 Other unrecognised reserves 1,306 1,309 Retained earnings 1,230 1,391 Equity 2,966 3,062 Interest-bearing long-term liabilities 535 581 Long-term sublease liabilities 164 0 Long-term ROU assets leasing liabilities 628 0 Other long-term liabilities 4 8 Deferred tax liabilities 224 254 Non-current liabilities 1,556 843 Trade payables 5,378 5,161 Interest-bearing current liabilities 492 1,073 Current sublease liabilities 105 0 Current ROU assets leasing liabilities 186 0 Other current liabilities 2,791 2,799 Current liabilities 8,951 9,034 Total liabilities 10,507 9,877 Total equity and liabilities 13,473 12,939

Consolidated statement of financial position – Group (2) Right-of-use assets NOK in million 30 Jun 2019 30 Jun 2018 ASSETS Right-of-use assets - Buildings and property 621 0 Right-of-use assets - Computer equipment 75 103 Right-of-use assets - Motor vehicles 144 9 Total right-of-use assets 840 112

Full-time employees - Group FTEs, end of period 30 Jun 2019 30 Jun 2018 31 Dec 2018 Norway 1,675 1,621 1,678 Sweden 2,549 2,390 2,497 Denmark 1,445 1,532 1,515 Finland 391 335 356 Baltics 660 658 665 Logistics 252 235 237 Atea Global Services 398 361 382 Atea ASA 12 10 10 AppXite 37 63 45 Atea Group 7,419 7,205 7,385

Financial performance actual – Segment NOK in million Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Norway 1,901.4 2,004.4 2,143.7 2,687.7 2,442.4 2,178.3 Sweden 3,314.4 3,932.0 2,780.3 4,022.3 3,575.3 3,984.2 Denmark 2,011.3 2,306.3 1,318.9 2,389.6 1,870.9 2,339.9 Finland 873.9 637.9 644.1 733.4 980.5 749.5 The Baltics 252.2 256.1 252.6 389.9 305.0 289.3 Group Shared Services 1,253.5 1,311.8 1,401.0 1,529.5 1,551.9 1,457.8 AppXite 4.7 3.7 3.9 4.7 5.6 7.0 Eliminations -1,271.4 -1,353.4 -1,446.2 -1,584.9 -1,592.3 -1,519.1 Operating revenues group total 8,340.1 9,098.6 7,098.4 10,172.3 9,139.4 9,486.8 Norway 42.5 64.9 82.5 118.3 38.4 70.8 Sweden 96.1 107.5 103.4 146.2 104.8 119.3 Denmark -10.8 -43.9 -50.2 10.5 -26.0 -39.6 Finland 11.3 10.4 9.2 28.2 11.8 12.2 The Baltics 0.7 3.4 7.9 15.7 8.7 6.3 Group Shared Services 8.7 9.6 11.2 11.6 6.2 -2.7 AppXite -4.3 -5.1 -7.9 -5.8 -3.7 -2.6 Operating profit before group cost (EBIT) 144.2 146.9 156.2 324.7 140.2 163.7 Group cost -21.5 -20.0 -24.2 -16.0 -24.3 -18.7 Operating profit (EBIT) 122.7 126.9 131.9 308.7 115.9 145.1 Exchange gain (Agio) 43.7 46.3 28.3 28.1 113.9 -291.6 Financial income 1.5 2.5 2.9 3.4 2.4 2.4 Financial expenses 12.9 20.0 15.1 18.5 19.7 23.6 Net finance -11.4 -17.5 -12.2 -15.1 -17.3 -21.2 Profit before taxes (EBT) 111.3 109.4 119.8 293.6 98.6 123.9 Tax 24.3 25.4 28.1 89.5 19.1 26.8 Profit for the period 87.0 84.0 91.7 204.2 79.4 97.1