Atea ASA

Welcome to the Q4 and 2025 numbers from the Atea Group. Welcome to icy cold Oslo, a beautiful winter day. It has been a challenging year, but a very rewarding year for everybody in the ecosystem of Atea. It's been a year of good results. and we'll soon take you through all of them. But it's also been a year where we've been doing massive investments in the future of Altea, and we'll touch on some of those too. Diving into Q4 first, we had a gross sales of 17.8 billion, up almost 8%. EBIT came in at $488 million, up almost 24%. And net profit, impressively, up almost 36%. All in all, it gave us an operating cash flow of $2 billion. But as always, I'll leave it to Robert to give you all the good news.

in the fourth quarter of 2025 driven by higher sales, increased gross margins, and relatively low growth in operating expenses. Gross sales in Q4 were 17.8 billion Norwegian krona, up 7.8% from last year. After adjusting for changes in currency rates, organic growth in constant currency was 4.7%. Hardware sales increased by sales increased by 5.4%. driven by higher sales in mobile devices. Software and cloud sales grew by 11%, with strong growth in sales of cloud solutions. Services same last year, based on higher demand for consulting and product support agreements. Net revenue, according to IFRS, was 11.3 billion Norwegian krona, up 6.1% from last year. Gross profit increased by 9.0% to 3.1 billion Norwegian krona. Gross margin was higher than last year due to an improved hardware margin and a higher proportion of software in the revenue mix. Operating expenses, excluding restructuring costs, grew by 6.6% to 2.6 billion Norwegian krona. Adjusted for currency movements, these costs grew by approximately 3.5% from last year. EBIT, before restructuring costs, increased by 23.7% to 488 million Norwegian krona. Restructuring costs were 8 million Norwegian krona in Q4 2025, as ETA Denmark reduced staff in its managed services business. In Q4 last year, Atea incurred restructuring costs of 39 million krona from a cost reduction initiative in Sweden. After restructuring costs, EBIT grew by 35.1% to 480 million Norwegian krona. and net profit after tax increased by 35.7% to $333 million, increased by 35.7% to $380, and that revenue and profit growth across the countries in which we operate. ATEA's strong sales and profit performance was spread across nearly all countries in the fourth quarter of 2025. In Norway, Gross sales increased by 8.5% to 4.6 billion Norwegian krona, with very strong growth in sales of software and services. EBIT grew by 12.4% to 156 million Norwegian krona. In Sweden, gross sales grew by 5.2% to 6.9 billion Swedish krona, driven by strong demand for hardware. With higher revenue and flat operating expenses, EBIT before restructuring costs grew by 31.4% to 207 million Swedish krona. In Denmark, gross sales fell by 4.0% to 2.4 billion Danish krona due to lower sales of hardware compared with last year. Last year, ITEA had a very high volume of initial hardware orders on new public sector frame agreements. Despite lower hardware sales, EBIT before restructuring costs grew by 52.6% to 41 million Danish krona, with a higher margin revenue mix and flat operating expenses. In Finland, gross sales grew by 11.0% to 112.7 million euro, as demand for products showed a strong recovery from last year. EBIT was 2.5 million euro, a decline from last year. due to an increase in staff and temporary factors, including startup costs related to new contracts. In the Baltics, gross sales increased by 55.8% to 76.8 million euro, driven by exceptionally strong growth in product deliveries to the public sector. EBIT increased by 16.7% to 4.0 million euro. ATA group functions, which includes shared services and group costs, was a net operating expense of 32 million Norwegian krona, compared with an expense of 22 million krona last year. The difference was due to higher spending on corporate development activities. Now a word on our cash flow and balance sheet. In Q4 2025, Attea had very strong cash flow from operations of 2.0 billion Norwegian krona. As you can see from this chart, Attea's cash flow from operations is highly seasonal, with strong cash inflows in the fourth quarter as Attea's sales and collections from the public sector increase and its working capital balances fall. Cash flow from operations was positively impacted by seasonal fluctuations in working capital in Q4 2025, although this impact was less pronounced than in Q4 last year. Based on the strong cash flow from operations, Attea had a positive net cash balance of 1.0 billion Norwegian krona at year-end, as defined by Attea's loan covenants. This corresponds to a net-to-ebitda ratio of negative 0.5. Attea's net debt balance at the end of Q4 2025 was 6.4 billion Norwegian krona less than the maximum allowed by its loan covenants. Attea has a strong balance sheet and significant additional debt capacity before its loan covenants would be reached. That concludes the presentation of the fourth quarter results. I'll now hand the podium back over to Steiner to review full year results and discuss the outlook for Attea's business.

Thank you, Robert. As always, you have all the fun. If we try to summarize 2025, revenue came in at over 60 billion Norwegian kroners. It's an impressive number, but it's even more impressive that growth in Norwegian kroners in 2025 came in at a little bit more than 6.5 billion with the same number of people. EBIT at 1,385,000,000 up 15.4%. All in all, a very good year. But this is not new. ATEA has been stable both on revenue growth and EBIT growth for many years. And on this chart, you see the last six years. It is almost as linear as analysts' spreadsheets, with gross sales growth of 9% on average and EBIT on 10% on average. In the next couple of years, we have to scale even better on this revenue. But let me bring you in to some of the things that have happened in Aotea in 2025, and that will have effect on our results in the coming years. First, of course, we are extremely happy with how we have developed in the defense sector. It's not only the national defense organizations, it's also companies delivering to defense. But during the last couple of years, we've also strengthening our activity towards NATO all over the world. And so when we signed a new agreement in the fall of 2025 with NATO, and you see Robert having the honor here on the picture in Brussels, we were extremely happy, but also proud. It's a contract that will change many of the operations that we do internationally, and it will strengthen us and prepare us to do similar contracts with other companies that have similar needs. But as you can see on the right side, it's not the only large contract we signed in 2025 that will have impact in the next couple or even more years. We have strengthened our relationship with Ski in Denmark. But we also signed another equipment deal with NATO, which is not as a service, which you see on the left side. And so it's not one contract, it's many. And we've had contracts in Norway and in the Baltics. But we are particularly proud that we will do outsourcing together with the health regions in Finland. This is, by the way, one of the contracts which have led us to take on more people in Finland, even though short-term that might not have looked well when revenue hasn't been growing. That will change in 2026. All in all, a whole bunch of new contracts that will help us going into the new year. In 2025, we also worked on the future of a daughter company called ApexSight. And just before Christmas, we signed a deal with Ares, a UK-based software company, that they will take over 51% of the company. In Q1, 2026, we will recognize an EBIT of approximately 150 million Norwegian Kroners as a result of this transaction. So I want to say thank you to everybody in APEX site. I know that you're probably looking at this for working together for the last many years and also for working with you into the future, though in a different capacity. The deal we have done with ARIS and how we've developed ApexSight will also be something we'll talk to you about in the coming years. as this will change some of the relationship we or possibilities that we have with Microsoft, with their new incentive programs, where ApexSight has become a distributor that Altea and other customers of ApexSight can use going forward and to maximize Microsoft's programs. Many other things have happened more internally in Atea. I've already mentioned the growth. It's actually pretty impressive when you see that this growth is probably higher than the revenue of the biggest competitors that we have in the region. But we also work to strengthen Denmark, and I'm very happy to welcome Nicolai Maresco as new country manager in Denmark starting later in this quarter. We also hired Hans Vikstad to take over and run our managed services division across all seven countries. We have strengthened and kind of moved the focal point for Atea Global Services, which we have had in Riga for a long time, and from a nearshoring to more a center of excellence. and we have moved into new and fresh offices so our 600 people have a better environment to do that center of excellence job. Finland has been lagging a little bit on results, but we have kept on building the capacity, and we have high hope for the line of opportunities in 2026. We've built, as I've alluded to, a special sales team across the countries to work with defense and NATO specifically, as it has some special demands on security clearance and also the products that we deliver. It was a big day late in 2025 when Hotel Logistics, our central supply chain organization, passed 10 billion Swedish in revenue. We opened the new center late 2019. So that is some of accomplishment. At the same time, they changed their ERP system. And we're now fully operating on an SAP solution that we later will also roll out in the different countries. And we are very happy that in 2025 in total, 16% of our customers have chosen Atea to be their main cybersecurity partner, up from 10% only 12 months ago. So we're productive. and very constructive and good 2025 is behind us. So what does the future look like? Well, there are challenges also that we have to face and solve in 2026. But we expect to keep on growing. We expect to keep on consolidating the market. and the vendors are helping us. They want to have fewer partners in Europe and they want the partners have to be stronger and they're pushing us to develop services and be a complete shop for the customers. This gives us a possibility to keep on growing the EBIT. But there are also some challenges when it comes to the supply chain situation and many of you are worried when you read that there is a shortage of memory, CPUs, or other components. And we do recognize that this is a problem. Right now, the problem for us is not as much supply as it is unprecedented price increases. We have seen price increases on certain offers of more than 100%. Now, this is not new. It's happened before. We're only two or three years away from last time. This is a little bigger, though, and you know it comes from all the investments in AI farms, AI PCs, but also the fact that what we do is now a part of everything, cars, refrigerators, TVs, and other equipment. It'll be challenging. We feel right now we're kind of in the middle of a storm that we are dealing with hour by hour and day by day. But this will calm down. The situation will work itself out. And we think that the price increases will keep on, or the prices will keep on being high for the rest of this year and maybe even long into the future. In many ways, you can say that we get help from price increases in getting revenue increase. We are doing a lot of activities internally, and we have the flexibility with the breadth that we have in Aotea to face these kind of problems. And if you look into our history, you can see we have dealt pretty well with them before. As you know, you don't have to be perfect as long as you're better than competition, and we are certainly equipped to be better than competition in situations like this. We are using our balance sheet to have more inventory over a period, but we also see that this will calm down. The unpredictable will become predictable, and the whole industry will deal with it. As said, we have done it before, so we're confident we can do it again. On basis of everything Robert and I told you today, the board will propose for the General Assembly that we'll increase the dividend to seven and a half kroners. And it will be as normal, a repayment of paid-in capital. And in two installments, one in May and one in November. Solid results from the company gives shareholders a solid return in the way of dividend. So, that concludes... the presentation for the Q4 and 2025 results. And we'll now go to Q&A.