Atea ASA

Welcome to all of you around the world. Welcome to sunny Oslo. And welcome to the Q1 2026 numbers for Atea. And wow, what a quarter. This was not easy. But again, Atea and all its employees showed up and made a big difference. So let's look at the main numbers. Gross sales grew by 11.5% with a minimum of that coming from currency, giving us a revenue or gross sales of 14.8 billion Norwegian kroners. Net revenue grew by 12.9% and EBIT came in at 476 million, up from 281 the year before. Net profit increased at $389,000, up from $162,000. So again, the best quarter in the history of the company. But as always, I'll leave it to Robert to take all the good news.

Thank you, Skyler.

Attail reported high profit growth in the first quarter, driven by strong sales of hardware and software. Gross sales in Q1 were 14.8 billion Norwegian krona, up 11.5% from last year. After adjusting for changes in currency rates, organic growth in constant currency was 10.7%. Hardware sales increased by 18.9%, with very high shipments of PCs and data center equipment. Demand for hardware continues to be healthy, and in addition, we've seen purchase orders in expectation of supply constraints later in the year. Some of these orders were delivered and recognized in Q1, but most of the order volume is still in the backlog and will be delivered in future quarters. Software and cloud sales increased by 9.1%, with very strong growth in sales of cloud solutions. Services sales were in line with last year. Net revenue, according to IFRS, was 9.7 billion Norwegian krona, up 12.9% from last year. Gross profit increased by 6.0% to 2.8 billion Norwegian krona. Gross margin was lower than last year due to a lower proportion of services in the revenue mix. Operating expenses grew by 4.9% to 2.5 billion Norwegian krona. The average number of full-time employees was down sequentially from last quarter but was 2.4% higher than last year. EBIT was 476 million Norwegian krona compared to 281 million krona last year. In February, Atea recognized the gain of 152 million Norwegian krona from the sale of shares in its Apexite subsidiary. Excluding this gain, EBIT was 324 million krona, up 15.4% from last year. Net profit after tax was 389 million krona. This compares with 162 million krona last year. We'll now take a closer look at sales and profit development across the countries in which we operate. Attea's strong sales performance and higher profits were spread across all countries in the first quarter of 2026. In Norway, Gross sales increased by 17.8% to 3.7 billion Norwegian krona, based on higher demand across all lines of business. EBIT grew by 24.7% in Norwegian krona. In Sweden, gross sales grew by 8.9% to 6.0 billion Swedish krona, with a rapid increase in hardware sales. EBIT was 187 million Swedish krona, up 2.0% from last year. In Denmark, gross sales increased by 6.0% to 2.0 billion Danish krona, driven by strong demand for hardware. EBIT was 7 million Danish krona compared with the break-even EBIT last year. In Finland, gross sales grew by 14.1% to 110 million euros, based on very high sales of software and cloud solutions. EBIT increased by 3.2% to 2.1 million euro. And in the Baltics, gross sales increased by 24.7% to 56 million euro. Sales of software more than doubled due to large public sector projects in Lithuania and Estonia. EBIT increased by 14.7% to 1.7 million euro. Attea Group Functions, which includes shared services and group costs, was collectively a net operating expense of 18 million Norwegian krona, compared with an expense of 23 million Norwegian krona last year. The difference was primarily due to higher profits in Attea Logistics. Now we're on our cash flow and balance sheet. Attea's cash flow from operations was an outflow. of 447 million Norwegian krona in the first quarter of 2026. This compares with an outflow of 881 million krona last year. As you can see on this chart, Attea's cash outflow in Q1 2026 was in line with normal seasonal trends. Attea's cash flow has a seasonal peak in the fourth quarter of the year when shipments are highest and working capital balances decrease. In the first quarter, Cash flow is typically negative as working capital balances return to higher levels. As we look ahead, Atea's cash flow will be temporarily affected by hardware supply constraints. Due to longer lead times from vendors, Atea plans to pre-order inventory in order to secure hardware availability for its customer orders. Atea will then reduce its inventory balance once production lead time is normalized. This will result in a significant cash outflow in Q2 2026, but then higher cash inflow in later quarters when inventory levels are reduced. Now on to our balance sheet. Atea had a net cash balance of 187 million Norwegian krona at the end of Q1 2026, as defined by Atea's loan covenants. This corresponds to a net debt EBITDA ratio of negative 0.1. Atea's net debt balance at the end of Q1 2026 was 6.1 billion Norwegian krona, less than the maximum allowed by its loan covenants. Atea has a strong balance sheet and significant additional debt capacity before its loan covenants would be reached. That concludes the presentation of the first quarter financial results. I now hand the podium back over to Steinar to discuss the overall industry environment and the outlook for Atea's business for the remainder of the year.