Q4 2017 PRESENTATION 7 FEBRUARY 2018 Highlights Q4 2017 Record - PowerPoint PPT Presentation

Q4 2017 PRESENTATION 7 FEBRUARY 2018

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 net cash balance of MNOK 102 at year end Proposed dividend of NOK 6.50 per share To be paid in two equal installments in May and November 2018

Financial summary Strong growth in EBIT, as revenue grows faster than operating expenses CURRENCY: MNOK Q4 17 Q4 16 Growth • Solid revenue growth across all lines of Revenue 10,015 9,096 10.1% business Gross profit 2,128 1,966 8.2% • Reduced GM% due to growth in % margin 21.2% 21.6% -0.4% sales of lower margin software • Opex growth driven by higher G&A Operating expense 1,736 1,608 7.9% expenses (marketing, IT) EBIT 392 358 9.6% % margin 3.9% 3.9% 0.0% Note: Currency exchange rates have a positive impact on revenue growth rates of 3.4% in the fourth quarter of 2017. Operating expenses include personnel costs, other opex, depreciation and amortization costs.

Norway Rapid EBIT growth, based on higher revenue and lower personnel costs REVENUE EBIT +28.6% +12.8% Product revenue +14.5% 119 2,762 2,448 92 Service revenue +6.0% NOK in million NOK in million Gross profit +6.0% Operating expenses +1.5% Q4 16 Q4 17 Q4 16 Q4 17

Sweden Very strong growth in revenue, gross profit and EBIT REVENUE EBIT +16.8% +12.5% Product revenue +13.1% 3,842 144 3,417 Service revenue +8.8% 123 SEK in million SEK in million Gross profit +12.4% Operating expenses +11.5% Q4 16 Q4 17 Q4 16 Q4 17

Denmark Lower revenue partly offset by reduced personnel expenses REVENUE EBIT -21.3% -8.1% Product revenue -9.0% 2,108 107 1,938 Service revenue -4.6% 84 DKK in million DKK in million Gross profit -8.5% Operating expenses -4.5% Q4 16 Q4 17 Q4 16 Q4 17

Finland Solid revenue growth, improved gross margins and lower operating expenses REVENUE EBIT +156.4% +5.0% 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

Baltics Revenue growth accelerates based on large projects and contracted services REVENUE EBIT +12.1% +14.7% Product revenue +12.1% 1.6 44 1.4 39 Service revenue +27.0% EUR in million EUR in million Gross profit +12.3% Operating expenses +12.3% Q4 16 Q4 17 Q4 16 Q4 17

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 Q1 17 Q2 17 Q3 17 Q4 17 CF Operations Changes in WC

Summary – Q4 2017 Record high revenue, operating profit and operating cash flow EBITDA of NOK 488 million, up 7.6% REVENUE EBITDA Revenue of NOK 10.0 billion, up 10.1% Cash flow from operations of NOK 1,765 EBIT EBIT of NOK 392 million, up 9.6% CASH FLOW million, which is the same level as last year * Currency exchange rates have a positive impact on revenue growth rates of 3.4% in the fourth quarter of 2017

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) 35,000 800 799 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 year 20,000 during same period 400 355 15,000 10,000 200 2013 2014 2015 2016 2017 Revenue EBIT * Organic growth rate of 6.4%, plus acquisitions and currency effects

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 % margin up to 2.5%, from 2.2% in 2016 Strong cash conversion Free cash flow of MNOK 976** High annual dividend payout, based on cash flow generation Cash dividend of NOK 6.50 to be proposed in 2018 * Pro forma growth adjusted for acquisitions and currency effects. Market growth based on preliminary IDC estimate of 4.6% (2017 full year). ** Free Cash Flow defined as Cash Flow from Operations, minus capex. Capital expenditures include assets acquired through financial leases.

Strategic initiatives to improve profitability STRENGTHEN CAPABILITIES IN HIGHER VALUE ADDED COUNTRY INITIATIVES PRODUCTS AND SERVICES LEVERAGE GROUP FUNCTIONS TO IMPROVE MARGINS TO REDUCE OPERATING COST AND PRODUCTIVITY Supply chain Service growth Nearshoring Service efficiency Security Group IT Solution selling Hybrid cloud Operating expenses Business intelligence Internet of things Networking

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 based on IBM and Microsoft technology to address needs like data driven decision support, enhanced competitive ability, new business opportunities and business models • In the IoT space Atea has built a partner eco-system based on a Hybrid IoT platform and competence to integrate the pieces into complete solutions, for example for Smart City solutions, Smart buildings and Smart welfare

Analytics

Atea digital platform Atea Cloud IBM Cloud / Azure Fog Computing Secure communication IoT platform Big Data and Analytics Visualization Integrations Buildings Welfare City Smart municipalities Atea hosted cloud

Use cases

A DI DIGI GITAL AL PL PLATF TFORM ORM FO FOR SU SUBS BSCR CRIPTION IPTION AND D CON ONSUMPTI SUMPTION ON BA BASED SED EN ENABLEMENT ABLEMENT

WHA HAT T APP PPXI XITE TE IS HELPI ELPING NG TO ACHIE CHIEVE VE ▪ 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 business for automated transactions and selling in the cloud ▪ In order for the companies to grow, they require a number of supporting services, which AppXite intends to deliver as offerings together with the solution ▪ Services which are ensuring that the offerings developed by the companies can be scaled technically and provisioned automatically to the highest degree possible

Q4 2017 FACT PACK

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 earnings per share (NOK) 2.44 2.72 5.00 4.80 Cash flow from operations 1,765 1,765 1,238 1,404 Free cash flow 1,696 1,708 976 1,075 30 Jun 2017 30 Jun 2016 31 Dec 2017 31 Dec 2016 Net financial position 102 -350 102 -350 Liquidity reserve 3,039.74 2,362 3,040 2,362 Working capital -1,692 -1,385 -1,692 -1,385 Working capital in relation to annualized revenue (%) -4.2% -3.8% -5.2% -4.4% Equity ratio (%) 22.6% 23.8% 22.6% 23.8% Number of full-time employees 6,904 6,882 6,904 6,882

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-current assets 5,252 5,205 Inventories 591 608 Trade receivables 6,886 5,975 Other receivables 1,062 788 Cash and cash equivalents 1,125 880 Current assets 9,663 8,251 Total assets 14,915 13,456 EQUITY AND LIABILITIES Equity 3,373 3,200 Interest-bearing long-term liabilities 120 1,079 Other long-term liabilities 13 17 Deferred tax liabilities 275 253 Non-current liabilities 408 1,348 Trade payables 6,755 5,835 Interest-bearing current liabilities 903 152 Other current liabilities 3,476 2,921 Current liabilities 11,133 8,908 Total liabilities 11,541 10,256 Total equity and liabilities 14,915 13,456

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