Atea ASA

Welcome, welcome to the Q2 presentation of the Atea number here in beautiful summerly Oslo. This time we actually did something we've never done before. We moved the presentation from Thursday morning to this afternoon. This is how Oslo looked after being beaten by England in the quarterfinal of the World Cup. Think how it would have looked if we had beaten Argentina this night. I would probably have been doing this presentation alone and that would not be good even without Robert. But friends, I am so happy to share the numbers with you. They are equally good as the Norwegian World Cup. After all the buts and ifs in the market, I am so proud to say that revenue this quarter came in at 18.9 billion, up 12.5%, EBIT at 320, up 19.2%, and net profit at 218, up almost 40%. But I am so happy to also this time have with me Robert so he can give you all the good news.

Thank you Steinar.

ATAE reported rapid growth in sales and profitability during the second quarter driven by strong demand for hardware and software. Gross sales in Q2 were 18.9 billion Norwegian krona, up 12.5% from last year. Organic growth in constant currency was 19.4%. Currency fluctuations had a negative impact on sales growth of 5.8% as sales in foreign currencies were translated into a stronger Norwegian krona compared with last year. Hardware sales increased by 21.2%, with high demand across all major categories and particularly strong growth in data center and networking solutions. Software and cloud sales increased by 11.7%, driven by strong growth within security and productivity applications. Services sales fell by 4.7% from last year. Arunas Bartusevicius, Carl-Johan Hultenheim Operating expenses grew by 1.8% to 2.6 billion Norwegian krona. The average number of full-time employees was down sequentially from last quarter, but was 2.1% higher than last year. Based on strong sales performance and relatively low growth in operating costs, EBIT increased by 19.2% to 320 million Norwegian krona. Net profit after tax was 218 million Norwegian krona, up from 157 million krona last year. We'll now take a closer look at sales and profit performance across the countries in which we operate. Atea's financial performance was driven by rapid sales growth across all countries in the second quarter of 2026. In Norway, gross sales increased by 26.0% to 4.1 billion Norwegian krona, with very high growth in sales of hardware and software. EBIT was 108.5 million Norwegian krona in line with last year due to a lower margin sales mix compared with Q2 2025. In Sweden, gross sales grew by 17.5% to 7.8 billion Swedish krona, Evit was 156 million Swedish krona, up 24.5% from last year. In Denmark, gross sales increased by 16.0% to 3.5 billion Danish krona, based on high demand for networking and data center solutions. Evit grew by 30.4% to 14 million Danish krona. In Finland, gross sales increased by 11.2% to €119 million, driven by strong sales of hardware and cloud solutions EBIT increased by 15.0% to €3.0 million In the Baltics, gross sales increased by 16.7% to €60 million, with high growth in sales of software and services EBIT grew by 19.4% to 2.1 million euro. Atea Group Functions, which includes shared services and group costs, was a net operating expense of 22 million Norwegian krona, compared with an expense of 40 million krona last year. The improvement was mainly due to significantly higher profitability in Atea Logistics. Now we're on our cash flow and balance sheet. Atea's cash flow from operations was an outflow of 727 million Norwegian krona in the second quarter of 2026. This compares with an outflow of 111 million Norwegian krona last year. As you can see from this chart, Atea's cash flow from operations has a strong seasonal pattern, with very high cash inflow in the fourth quarter. In Q2 2026, cash flow from operations was below the typical seasonal trend. Working capital was affected by higher inventory levels as Atea increased inventory to secure customer deliveries during a period of supply constraints in the IT industry. This was also discussed during the last quarterly presentation and was a clear strategy in the face of the current supply constraints. Atea plans to reduce its inventory balance with hardware deliveries in the second half of 2026. This will result in an improved cash flow during the remainder of the year. Now on to our balance sheet. At the end of Q2 2026, Atea had a net debt of 1.3 billion Norwegian kroner, as defined by Atea's loan covenants. This corresponds to a net debt EBITDA ratio of 0.5. Atea's net debt balance at the end of Q2 2026 was 4.7 billion Norwegian krona below 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 second quarter results. I'll now plan the podium back over to Steinar to discuss the outlook for Atea's business as we look forward to the second half of the year.