Itera

Earnings Release • Feb 14, 2025

INTERIM REPORT Q3 2024 PAGE 1 OF 26 ITERA

October – December 2024

• Operating revenue NOK 212.1 million (NOK 222.1 million), representing a decrease of 4%
• Gross profit NOK 196.3 million (NOK 206.2 million), representing a decrease of 5%
• Adjusted EBITDA NOK 19.9 million (NOK 29.5 million) and an adjusted EBITDA margin of 9.4% (13.3%)
• Adjusted EBIT NOK 11.9 million (NOK 21.1 million) and an adjusted EBIT margin of 5.6% (9.5%)
• 725 (758) employees at the end of the period, a rightsizing of 33 over the last twelve months
• Cash flow from operations NOK 45.3 million (NOK 57.2 million)

January – December 2024

• Operating revenue NOK 848.9 million (NOK 871.6 million), representing a decrease of 3%
• Gross profit NOK 783.0 million (NOK 813.7 million), representing a decrease of 4%
• Adjusted EBITDA NOK 85.3 million (NOK 113.7 million) and an adjusted EBITDA margin of 10.0% (13.0%)
• Adjusted EBIT NOK 52.4 million (NOK 81.4 million) and an adjusted EBIT margin of 6.2% (9.3%)
• Cash flow from operations NOK 73.7 million (NOK 95.7 million)

Highlights

Itera's financial results for the fourth quarter show a 4% decline in revenue (3% in constant currency terms), with an adjusted EBIT margin of 5.6%. This margin is adjusted for a write-off related to an investment in a partnership, which negatively affected the margin by 1.5 percentage points. Despite lower demand impacting both revenue and profitability, there was a gradual improvement in Itera's billable utilisation rate and sales pipeline through the quarter.

Itera had an order intake equivalent to a book-to-bill ratio of 1.4 in the fourth quarter of 2024 and of 1.0 for the last twelve months. In the fourth quarter, Itera signed a new framework agreement with one of its biggest customers, namely Gjensidige Forsikring, reinforcing Itera's position as its strategic digitalisation partner.

Cash flow from operations was NOK 45.3 million (NOK 57.2 million) for the quarter and NOK 73.7 million (NOK 95.7 million) for the year as a whole. Itera's EBITDA-to-cash conversion rate of 90% for 2024 as a whole demonstrates the scalability of our business model, which enabled NOK 48.8 million to be paid out as dividends in the same period.

As previously reported, Itera made two smaller strategic acquisitions in the fourth quarter to jump-start its establishment of a new office in Rogaland, Norway. In addition to the existing business of the acquired companies, the new office is generating significant new leads through its attractive customer base.

A supplementary dividend of NOK 0.20 per share based on Itera's 2023 results was paid in the fourth quarter of 2024, making the total dividend payment for 2023 NOK 0.60 per share. The Board of Directors has passed a resolution to propose to the Annual General Meeting on 27 May 2025 the distribution of an ordinary dividend for 2024 of NOK 0.20 per share and for it to be authorised to approve a possible supplementary dividend later in the year.

Key figures

	2024	2023	change	2024	2023	change	2023
Amounts in NOK million	10-12	10-12	%	1-12	1-12	%	1-12
Operating revenue	212.2	222.1	-4%	849.1	871.6	-3%	871.6
Gross profit	196.5	206.2	-5%	783.2	813.7	-4%	813.7
Adjusted EBITDA5	19.9	29.5	-33%	85.3	113.7	-25%	113.7
Adjusted EBITDA margin5	9.4 %	13.3 %	-3.9 pts	10.0 %	13.0 %	-3 pts	13.0 %
Adjusted operating profit (EBIT)5	11.9	21.1	-44%	52.4	81.4	-36%	81.4
Adjusted EBIT margin5	5.6 %	9.5 %	-3.9 pts	6.2 %	9.3 %	-3.2 pts	0.1
Operating profit (EBIT)	7.5	18.1	-59%	48.0	78.4	-39%	78.4
EBIT margin	3.5 %	8.1 %	-4.6 pts	5.6 %	9.0 %	-3.3 pts	9.0 %
Profit before tax	7.7	16.9	-55%	45.2	75.4	-40%	75.4
Net income	5.7	11.6	-51%	34.9	56.7	-38%	56.7
Profit margin	2.7 %	5.2 %	-2.5 pts	4.1 %	6.5 %	-2.4 pts	6.5 %
Net cash flow from operating activities	45.3	57.2	(21 %)	73.7	95.7	-23%	95.7
No. of employees at the end of the period	725	758	(4 %)	725	758	-4%	758

Revenue (NOK)

Employees (end of period)

Adjusted EBIT (NOK)

212.2m -4% ↘

725 -4% ↘

11.9m -44% ↘

CEO's comment

Strengthening partnerships and expanding horizons

We have made significant strides towards positioning ourselves for future growth, with improvements in our utilisation rate and sales pipeline. Before the end of the year, we established our new office in Rogaland (Norway) and reinforced our partnership with Gjensidige. Our ongoing support for Ukraine has also led to impactful initiatives, including one recognised at the UN Partnership for Sustainability Awards. Moreover, we are embracing artificial intelligence (AI) as a transformative force across our business, positioning us for sustainable digital transformation across all sectors.

As we conclude the fourth quarter of 2024, I would like to take this opportunity to reflect on our performance and the resilience that Itera has demonstrated in its navigation of a softer market. Although we saw a decrease in revenue of 4% and an adjusted EBIT margin of 5.6%, these figures do not overshadow the significant strides we have made towards positioning ourselves for future growth. Writing off an investment we made in a customer startup impacted our reported margins negatively, but I am encouraged by the gradual improvement in utilisation through the quarter, which indicates our ability to adapt and respond effectively to market demands.

Robust cashflow and dividend payout

Our cash flow from operations was robust as always, reaching NOK 45 million for the last quarter and NOK 74 million for 2024 as a whole. This robustness was underpinned by an exceptional EBITDA-to-cash conversion rate of 91%.

In line with our commitment to returning value to shareholders, we distributed dividends amounting to NOK 49 million in 2024, equivalent to NOK 0.60 per share and a dividend yield of 5%.

At the upcoming Annual General Meeting scheduled for 27 May 2025, the Board of Directors will propose an ordinary dividend of NOK 0.20 per share and will seek authorisation for potential additional dividends.

Growth through entrepreneurship

We remain steadfast in our commitment to growing. In the fourth quarter, we proudly set up a new office in Rogaland, Norway. The new office is a strategic initiative designed to enhance our proximity to key customers in the energy and offshore industries and those driving the green transition.

At an entrepreneurial organisation like ours, our growth strategy is mainly to grow organically. It involves investing in our people and our business. Our culture is grounded in a growth mindset: Grow our people, grow our customers, grow our company. This mindset fosters a growth culture where continuous improvement and resilience can thrive.

However, the new office in Rogaland was bolstered by our acquisition of two companies, which have added 21 skilled employees and enriched our customer base. The seamless integration of these new entities into Itera reflects our disciplined approach and agility when adapting to change. Together, we are united as ONE Itera across all locations, driving forward with a shared vision.

Strengthening customer partnerships

Looking back at the last quarter, I am particularly proud of our long-standing partnership with Gjensidige, which in the fourth quarter formalised a new framework agreement under which

Itera will be its strategic digitalisation partner for a minimum of three additional years. This enduring collaboration underscores our shared commitment to delivering innovative solutions that drive operational efficiency and enhance the customer experience at Gjensidige.

We have proudly supported Gjensidige with its digital transformation journey for over two decades, enabling substantial advancements in automation and service delivery within the Nordic insurance market. As a result of this fruitful partnership, Gjensidige is recognised globally for having some of the most outstanding digital claim solutions.

Moreover, I want to highlight our unwavering support for Ukraine through initiatives such as "Enter Ukraine with Itera". Our partnership with Bergen Engines, a leading manufacturer of medium-speed engines and generator sets based in Bergen Norway, has led to significant contracts, ensuring the delivery of over 160 MW of electricity through its gas engines. This achievement not only underscores our dedication but also demonstrates how are we leveraging our expertise to make a meaningful impact during these critical times.

Our efforts are directly addressing the humanitarian energy needs of approximately 1.5 million people in the Dnipro region this winter. According to Jon Erik Røv, Managing Director of Bergen Engines, our contribution has been essential in positioning its products and services for specific projects by helping it to navigate the complexities of the Ukrainian market and secure funding from the United Nations Development Programme (UNDP). Together, we are contributing to the development of a more distributed and resilient energy system in Ukraine.

Recognition for the Itera Employee Foundation

In addition to these achievements, I am thrilled that the Itera Employee Foundation was selected as a finalist in the Digitalisation category of the UN Partnership for Sustainability Awards in Ukraine. This prestigious recognition underscores our collective commitment to supporting those affected by the war in Ukraine while fostering a culture of social responsibility within Itera. Through our foundation, we deliver essential aid directly to our colleagues and their families who are bravely protecting Ukraine by providing critical supplies urgently needed on the front lines.

Embracing AI across our business

Looking ahead, we remain optimistic about creating opportunities for our people, customers, and shareholders alike. As we continue to invest in innovation — particularly in AI and cloud technology — we are committed to driving sustainable digital transformation across all sectors.

At Itera, we recognise that AI represents a transformative digital frontier with the potential to fundamentally redefine our business. We are fully integrating generative AI (GenAI) across all facets of our organisation, positioning ourselves to seize emerging opportunities as we approach 2025.

The emergence of AI agents exemplifies this shift towards more efficient business interactions. These agents can execute core functions while streamlining technology interactions for users, enhancing overall efficiency. However, this transition necessitates a robust digital core and highquality data, which are critical for training reliable models.

Our recent project with an industrial customer illustrates this trend. The customer concerned is considering developing an AI-based agent for pricing calculations instead of investing in a costly SAP module — an innovative decision that underscores both the cost savings and forward-thinking solutions available.

We are embedding AI into every process within our Digital Factory at Scale and Cloud Community of Excellence (CCoE). We are training our people to effectively utilise GenAI tools to achieve profitable outcomes for both Itera and our customers.

Thank you

To conclude my remarks, I want to thank our talented people for their dedication and hard work in staying close to our customers, providing short-term solutions, and capturing AI growth opportunities as spending increases. We will continue to operate in a rigorous and disciplined manner while executing our strategy of being the trusted partner for sustainable digital transformation.

FOUNDER & CHIEF EXECUTIVE OFFICER

Financial review

Fourth quarter and full year 2024

Financial reporting

The comments in this financial review relate to the performance of Itera's continuing operations in the fourth quarter and preliminary full year of 2024 compared to the equivalent periods in 2023 unless otherwise stated. The figures given in brackets in this report refer to the equivalent periods in 2023. Please refer to Note 4 for a description of the alternative performance measures used.

Summary for the fourth quarter

Itera's revenue in the fourth quarter of 2024 was 4% lower than in the corresponding quarter of 2023 (-3% in constant currency terms). Gross profit decreased by 5%, with the gross margin down by 0.2 points to 92.6% as a result of a higher cost of sales in relation to cloud-related revenue. The fourth quarter of 2024 contained a weighted average of 0.1 fewer working days than the corresponding period of 2023.

In the fourth quarter, Itera wrote off the entire NOK 4.4 million it invested in a partnership in 2023 after deciding not to pursue the venture further due to the company's inability to fund a market expansion and generate profits. Adjusted for this, Itera's operating profit (Adjusted EBIT) for the fourth quarter of 2024 was NOK 11.9 million (NOK 21.1 million), while the Adjusted EBIT margin was 5.6% (9.5%). Billable utilisation was below the corresponding quarter of 2023 due to the time associated with the process of redeploying staff to new assignments following the contractual end of some significant projects earlier in the year.

Goodwill of NOK 5.2 million was recognised in connection with Itera's acquisitions of Revoltr AS and Mosaique Headhunting Stavanger AS (now renamed to Itera Rogaland AS and Mosaique Headhunting AS) in predominantly sharebased transactions.

Operating revenue

Itera reports operating revenue of NOK 212.2 million (NOK 222.1 million) for the fourth quarter of 2024, which represents a decrease of 4% (-3% in constant currency terms). Revenue from Itera's own services decreased by 6% to NOK 174 million as it had fewer consultants and lower billable utilisation than in the same period of last year. The figures include NOK 4 million from companies acquired during the quarter. Revenue from subscription-based services increased by 8% to NOK 20 million, while revenue from thirdparty services decreased by 9% to NOK 8 million. Other revenue increased by 9% to NOK 10 million. For 2024 as a whole, operating revenue was NOK 849.1 million (NOK 871.6 million), which represents a decrease of 3% (-3% in constant currency).

Gross profit (revenue minus cost of sales) was NOK 196.5 million (NOK 206.2 million) in the fourth quarter of 2024, which represents a decrease of 5%. Gross profit for the year as a whole was NOK 783.2 million (NOK 813.7 million), which represents a decrease of 4%.

Operating expenses

Total operating expenses in the fourth quarter of 2024, which include a provision for write offs of NOK 4.4 million, were unchanged at NOK 204.7 million (NOK 204.0 million). For the year as a whole, total operating expenses were 1% higher at NOK 801.1 (NOK 793.2 million).

Cost of sales was NOK 15.7 million (NOK 15.9 million) in the fourth quarter of 2024 and NOK 65.9 million (NOK 57.9 million) for the year as a whole. Cost of sales consists mainly of subscriptions and third-party services, including cloud consumption.

Personnel expenses were NOK 157.7 million (NOK 162.5 million) in the fourth quarter of 2024, which represents a decrease of 3%. The average number of employees in the quarter was 6% lower than in the corresponding quarter of 2023, and personnel expenses per employee were up by 4%, both in NOK and in constant currency, reflecting a lower intake of graduates than last year and a slight reduction in Itera's nearshore ratio. For the year as a whole, personnel expenses were unchanged at NOK 634.4 million (NOK 634.4 million), representing an increase of 3% per employee.

Other operating expenses were NOK 18.8 million (NOK 17.1 million) in the fourth quarter of 2024, an increase of 10% (11% in constant currency). Other operating expenses per employee were 18% higher than the corresponding quarter of last year but on a par with 2022, with fewer employees to share fixed and semi-fixed costs. For the year as a whole, other operating expenses were down by 8% to NOK 63.4 million (NOK 68.7 million), representing a decrease of 5% per employee.

Depreciation and amortisation totalled NOK 8.0 million (NOK 8.5 million) in the fourth quarter and NOK 33.0 million (NOK 32.3 million) for the year as a whole. 45% of the depreciation and amortisation expense relates to right-of-use assets from facility lease agreements.

In the quarter, Itera wrote off the entire value (NOK 4.4 million) of an investment made in a customer partnership in 2023.

Operating result

The adjusted operating result before depreciation and amortisation (EBITDA) and before non-recurring items for the quarter was NOK 19.9 million (NOK 29.5 million), giving an Adjusted EBITDA margin of 9.4% (13.3%). EBITDA for the fourth quarter of 2024 was a profit of NOK 15.5 million (NOK 26.5 million), giving an EBITDA margin of 7.3% (11.9%). EBITDA for the year as a whole was NOK 80.9 million (NOK 110.7 million), and the EBITDA margin was 9.5% (12.7%).

The adjusted operating result (EBIT) for the fourth quarter was a profit of NOK 11.9 million (NOK 21.1 million), giving an EBIT margin of 5.6% (9.5%). Reported EBIT for the fourth quarter was a profit of NOK 7.5 million (NOK 18.1 million), giving an EBIT margin of 3.5% (8.1%). This includes NOK 0.2 million from the acquired companies. EBIT for the year as a whole was NOK 48.0 million (NOK 78.4 million), and the EBIT margin was 5.6% (9.0%).

Cash flow, liquidity and equity

The net cash flow from operating activities was NOK 45.3 million (NOK 57.2 million) in the fourth quarter of 2024. For the year as a whole, the net cash flow from operating activities was NOK 73.7 million (NOK 95.7 million), which includes a reclassification of interest expense on leasing from financing activities. This gives an EBITDA-to-cash conversion rate of 91% for the last twelve months. Non-cash interest expenses related to right-of-use assets have been reclassified from cash flow from financing activities to operating activities for all of 2024 as well as 2023 comparative figures.

There was a net cash outflow from investing activities of NOK 1.5 million (NOK 3.9 million) in the fourth quarter of 2024, of which NOK 1.3 million (NOK 1.8 million) related to office equipment, fittings and furniture. A further NOK 1.8 million (NOK 2.1 million) was related to investments in intangible assets primarily related to product development. There was a net inflow from acquisitions of new subsidiaries. For the year as a whole, there was a net cash outflow from investing activities totalling NOK 8.8 million (NOK 19.4 million).

There was a net cash outflow from financing activities of NOK 20.9 million (NOK 45.8 million) in the fourth quarter of 2024. This was primarily related to dividend payments of NOK 16.3 million and lease payments of NOK 4.3 million. For the year, the net cash outflow from financing activities totalled NOK 62.2 million (NOK 70.0 million).

Right-of-use assets primarily related to facility lease agreements decreased by NOK 14.3 million from 31 December 2023 to NOK 60.3 million at 31 December 2024.

Contract assets at 31 December 2024 were NOK 8.5 million (NOK 3.5 million). Accounts receivable and other receivables were NOK 9.9 million lower and NOK 1.2 million higher respectively than at 31 December 2023.

Cash and cash equivalents amounted to NOK 52.6 million at 31 December 2024, compared to NOK 49.2 million at 31 December 2023. Itera has a revolving credit facility of NOK 35 million.

Accounts payable at 31 December 2024 were NOK 1.9 million higher than at 31 December 2023. Public duties payable was

NOK 3.8 million lower than at the end of the fourth quarter of 2023. Tax payable was NOK 5.8 million lower than at 31 December 2023. Contract liabilities at 31 December 2024 were NOK 3.1 million higher at NOK 17.4 million and other current liabilities were NOK 0.8 million lower at NOK 63.2 million.

Itera had lease liabilities totalling NOK 64.2 million (NOK 77.5 million) at 31 December 2024. NOK 14.5 million of the lease liabilities are current liabilities that fall due within 12 months, while NOK 49.7 million are classified as non-current liabilities. Itera acquired a 5-year serial bank loan for NOK 5 million in the third quarter of 2023 to finance furniture and fittings for its new and refurbished offices. The outstanding balance on the loan at 31 December 2024 was NOK 3.8 million.

At 31 December 2024, Itera held 681,889 (1,654,281) own shares, valued at NOK 6.1 million (NOK 19.9 million).

Equity at 31 December 2024 totalled NOK 46.7 million (NOK 47.9 million). The equity ratio was 16.9% (16.1%). The equity ratio without the right-of-use assets included under IFRS 16 Leasing was 21.6% (21.4%).

Dividend

A supplementary dividend of NOK 0.20 per share was paid on 6 December 2024. The total dividend payout in 2024 was NOK 0.60 (NOK 0.70) per share, which is 87% (92%) of EPS.

At its meeting on 13 February 2024, the Board of Directors passed a resolution to propose an ordinary dividend of NOK 0.20 per share at the Annual General Meeting on 27 May 2025. It will also ask for its authorisation to approve possible additional dividends to be renewed.

Personnel

Building on a strong Nordic heritage, we combine local presence with geographically distributed capabilities into a distributed delivery model that features multidisciplinary teams and a flexible distribution of work across borders.

Itera's headcount at the end of the fourth quarter of 2024 was 725 as compared to 758 at the end of the fourth quarter of 2023. The reduction is a result of a rightsizing done to adjust to the market conditions the company experienced in 2024.

Itera has nearshore delivery centres in Slovakia, Poland, Czechia and Ukraine. The proportion of Itera's capacity that is located in these locations (its nearshore ratio) was 50% (51%) at the end of the fourth quarter of 2024.

Our distributed delivery model is very scalable and provides access to a much larger workforce than is available in local markets. Through our presence in Central and Eastern Europe, we are tapping into a pool of more than 600,000 digitally talented people.

Our distributed delivery model was recognised for having the best Project Management Office in Europe by the PMO Global Alliance in 2020. Itera also received the PMO Ukraine Award for 2020, achieving the best results in the categories "Best Practices", "Customer Service", "PMO Path", "Value Generation", "Innovations", "Competency Development" and "Formation of Commonality".

Significant risks and uncertainties

Itera's activities are influenced by several different factors, both within and outside of the company's control. As a service provider, Itera faces business risks associated with competition and pressure on prices, project overruns, recruitment, loss of key employees, customers' performance, and bad debts. Market-related risks include risks related to the business cycle. Financial risks include currency fluctuations against the Norwegian krone (NOK), principally in relation to the Danish krone (DKK), the Swedish krone (SEK), the US dollar (USD), the euro (EUR) and, more recently, the Czech koruna (CZK) and Polish zloty (PLN). In addition, interest rate changes will affect the returns earned by Itera on its bank deposits, as well as leasing costs and the cost of credit facilities.

The ongoing Russian invasion has not impacted Itera's commitment to nurturing Ukraine as one of its most important delivery centres. Since the early days of the invasion, our brave people in Ukraine have stayed focused on delivering excellent customer work while still safeguarding themselves and their loved ones, which, of course, is the overarching priority. In general, there is still confidence in Ukraine as a viable sourcing destination, and existing and new customers are quoting trade with Ukraine as an important Corporate

Social Responsibility (CSR) initiative. Itera is firmly committed to continuing its growth in Ukraine but has also mitigated the current risk by strengthening its presence in nearby EU locations.

The current macroeconomic environment is showing signs of improvement following a period of high inflation and high interest rates. Inflation has come down significantly, while interest rates seem to have peaked. Many companies have focused on cost reduction amidst this, which has also impacted demand for IT services in the past 18 months or so. We are seeing some indication of higher activity levels in relation to planned digitisation efforts and expect demand to increase gradually in the following quarters.

More information about risks and uncertainties can be found in Itera's annual report for 2023.

Outlook

The company's overall core strategy of developing large, longterm customer relationships, increasing the number of engagements which involve the full range of Itera's services, and using our Digital Factory at Scale and distributed delivery model across borders in the Nordics and Central and Eastern Europe, remains unchanged.

Itera has over time developed a unique position in Ukraine and is utilising its strong relationships with the Ukrainian authorities and senior management teams in Nordic industries to enable the green transition through new industrial software solutions and services for the rebuilding of Ukraine once the invasion is over. Itera is acting as an advisor and agent to Nordic companies that wish to build a presence in Ukraine and tap into the many EU and UN funded grants available. The energy authorities in Ukraine have also of their own initiative entered into a Memorandum of Understanding (MOU) with Itera for Itera to act as a mobiliser for the Nordic energy industry's increased support for Ukraine. Itera expects its new business line Enter Ukraine with Itera to generate significant revenue in the quarters to come.

For the past 18 months or so, the overall market has been softer than we have experienced in recent years, leading Itera, as well as most other players, to curb or downsize their capacity. With our focused effort on delivering more and broader sales activities and Itera's strong positioning in terms of its services and capabilities, we have succeeded in winning some significant new and extended agreements during the last few months and see a growing pipeline of promising opportunities both in the Nordic markets and in relation to supporting Nordic companies that wish to enter the Ukrainian market. We are seeing an increasing number of tenders in the market, which indicates that demand is on the increase. With our scalable model, Itera is well positioned and is currently participating in several substantial RFIs/RFPs.

There is a gradual shift taking place in the nature of the demand for managed services. As businesses seek greater resilience, face a war for talent, and need to digitise and experience cost pressures, strategic managed services are increasingly a top management priority. Leveraging the substantial investment that it has carried out in its Cloud and Application Services, Itera expects to see a gradual improvement in its profitability once the volume of migration and modernisation engagements reaches critical mass.

Itera opened an office in the Stavanger region, Norway, during the fourth quarter to be closer to customers there. As part of this, Itera acquired the consulting company Revoltr AS and the related recruitment company Mosaique Headhunting Stavanger AS. This will provide a platform for Itera to expand more quickly in the region. The Stavanger region office is headed by a manager with a proven track record of building a sizeable IT consulting business. The companies were consolidated into Itera from the date of the transaction with no material impact on financials in the fourth quarter of 2024.

Next interim report

The interim report for the first quarter of 2025 will be published and presented on 9 May 2025.

Statement by the Board of Directors and Chief Executive Officer

The Board of Directors and the CEO have today considered and approved the consolidated condensed financial statements for the Itera Group for the three months ended 31 December 2024, including the comparisons with the corresponding period in 2023.

The Board has based its declaration below on reports and statements from the Group's CEO, on the results of the Group's activities, and on other information that is essential to assessing the Group's position.

To the best of our knowledge:

• The consolidated condensed financial statements for the three months ended 31 December 2024 have been prepared in accordance with IFRS as adopted by EU and IAS 34 (Interim Financial Reporting) and the additional disclosure requirements pursuant to the Norwegian Securities Trading Act.
• The information provided in the financial statements gives a true and fair portrayal of the Itera Group's assets, liabilities, profit and overall financial position as at 31 December 2024.
• The information provided in the report for the fourth quarter of 2024 provides a true and fair overview of the development, performance, financial position, important events and significant related party transactions in the accounting period as well as the most significant risks and uncertainties facing the Itera Group.

Oslo, 14 February 2025

The Board of Directors and CEO of Itera ASA

Morten Thorkildsen Helge Baastad Leiro Jan-Erik Karlsson

Chairman Board Member Board Member

Gyrid Skalleberg Ingerø Åshild Hanne Larsen Andreas Vestre

Board Member Board Member Board Member

Board Member CEO

Lise Eastgate Arne Mjøs

INTERIM REPORT Q4 2024 PAGE 10 OF 26 ITERA

Business development and market

Empowering industries through digitalisation

Our mission is to help businesses and organisations to accelerate their sustainable digital transformations and to achieve more for less. This mission has never been more urgent or more necessary. The private and public sectors are increasingly looking to digital technology to overcome today's challenges and emerge stronger. As an international tech company, Itera has never been better positioned to be their partner.

We leverage our scale and international footprint, our innovation-led culture and strong partnerships, and our Digital Factory at Scale and Cloud Community of Excellence capabilities to consistently deliver tangible value for our customers worldwide.

Industry highlights

Industry expertise is a competitive advantage which allows us to bring industry-specific solutions to our customers to enhance value creation. Our focus industries are financial services, energy and the public sector, and this focus gives us an understanding of the evolution of these industries, their business issues and new and emerging technologies.

Itera had an order intake equivalent to a book-to-bill ratio of 1.4 in the fourth quarter of 2024 and of 1.0 for the last twelve months. We entered into new or extended contracts with customers including Gjensidige, Santander, Kredinor, the Norwegian Directorate of Integration and Diversity (IMDi), Trafsys, Lyse, Eviny, Insurance Technology Solutions, Pelagia and Aker Solutions.

The revenue from Itera's 30 largest customers accounted for 77% of its operating revenue, which is 7 percentage points lower than in the fourth quarter of 2023. New customers, defined as customers won during the last 12 months, accounted for 13.5% (NOK 28.7 million) of revenue.

Accelerating sustainable energy transformation

Digitalisation and better data use continue to be key drivers of increased speed in the energy transition. Itera's key services are relevant to the energy sector and create substantial growth.

In the fourth quarter, we continued delivering valuable services to our key energy customers. As an example, we continued helping Vattenfall develop the interface between business and IT, with Itera delivering services in business architecture and project management. This included several projects addressing both business development, system renewal and regulatory changes, such as implementing support for the 15-minute spot market in the current system landscape in Finland. In the period, we also further grew our cooperation and footprint at Vattenfall and are now delivering data analytics to Vattenfall IT and supporting E-mobility by means of centralising process management.

Digitalisation in the financial services industry (FSI) In the fourth quarter, Itera entered into several agreements that strengthen our position in the banking and insurance sector. In the ever-evolving financial sector, we aim to stay on top of developments alongside our customers.

Itera is pleased to announce that Gjensidige has entered into a new framework agreement, reaffirming our position as its strategic partner for digitalisation and design for the next three years, with automatic renewal provisions. This partnership, which has spanned over 20 years, has facilitated significant advancements in Gjensidige's digitalisation and

automation efforts in the Nordic market. Key initiatives have included enhancing claims processing efficiency and automating sales processes, resulting in reduced operating costs. Furthermore, improvements to its mobile app and online platform have improved the customer experience, positioning Gjensidige as one of the leaders in digital sales services in Norway.

Earlier in 2024, Kredinor renewed its framework agreement with Itera to further streamline and enhance its service quality through digitalisation. With over seven years of collaboration, this engagement underscores Itera's established presence as a trusted digitalisation partner in the financial sector. In the fourth quarter, we successfully launched an update to Kredinor's Client Portal, encompassing over 50 user stories that were celebrated by the team. The release was executed seamlessly, reflecting our commitment to delivering high-quality solutions that are aligned with Kredinor's ambitions.

Additionally, we are pleased to report progress with a major customer in the financial services sector. One of our teams successfully completed the implementation of a new core system and supporting systems for consumer loans in Sweden - at record speed. Following four challenging years of transitioning from an ineffective Salesforce solution—this project exemplifies the remarkable resilience and collaboration of all stakeholders involved.

Enter Ukraine with Itera

As part of Itera's "Enter Ukraine with Itera" program, we have supported Bergen Engines to position its products and services for the Ukrainian market. In the fourth quarter of 2024, Bergen Engines successfully signed two significant contracts with Ukrainian parties to provide more than 160 MW of electricity by its gas engines. Good progress is being made, with some engines already having been installed in Ukraine. The aim of the project is not only to provide energy to approximately 1.5 million people in Ukraine but also to serve as a replicable model for similar resilient energy systems that could be implemented in other regions, including Norway. As stated by the Managing Director of Bergen Engines, Jon Erik Røv, "Throughout 2024, Bergen Engines has in addition to promoting our products in Ukraine directly to the market, been part of the "Enter Ukraine with Itera" program. During this period Itera has been instrumental in positioning Bergen Engines' products and services in Ukraine for some specific projects. Our partnership has already led to significant contracts for gas engine deliveries, with delivery projects progressing well. Itera's expertise in navigating the Ukrainian market is invaluable, and we look forward to continued success together, contributing positively to support the development of a more distributed and resilient energy system in Ukraine. A business with purpose".

Other highlights

The rise of AI agents: Streamlining business interactions and operations

Artificial intelligence (AI) is poised to fundamentally redefine business operations. Insights from industry leaders, including Satya Nadella's assertion that "SaaS is dead," underscore a critical shift towards AI-driven systems that enhance efficiency and user engagement. The emergence of AI agents that are capable of executing core functions like creating, reading, updating, and deleting data represents a significant departure from traditional user interfaces. These agents streamline technology interactions, allowing users to communicate their needs directly while managing behind-thescenes complexities.

A robust data infrastructure is essential to support effective AI operations; high-quality data will be crucial for training reliable models. Additionally, businesses must prepare their workforce through continuous education and skill development as they navigate this hybrid environment of traditional systems and AI technologies. Our recent project for one of our customers illustrates this trend: an organisation is considering developing an AI-based agent for pricing calculations instead of investing in a costly SaaS module, highlighting AI's potential to deliver cost savings and drive innovation in business processes.

Strengthening our presence in South-Western Norway

In the fourth quarter, Itera opened its new office in Rogaland, Norway, in a strategic move aimed at enhancing our proximity to key customers in the energy and offshore industries and sectors driving the green transition. This expansion was accelerated by our acquisition of two companies — Revoltr AS and Mosaique Headhunting Stavanger AS — which added 21 skilled employees and an attractive customer base, positioning us for growth.

Itera's innovative culture and operational model are resonating well with local talent. Itera began integrating the two companies' services immediately, yielding positive outcomes across projects in Rogaland, Oslo, and Bergen in December. Itera has strengthened its collaboration with Lyse, which has quickly become a significant customer for us. The opening of our Rogaland office has been a key factor, and we now have 10 FTEs dedicated to Lyse, distributed across our offices in Bergen, Stavanger, and Oslo. We are seeing strong synergies between Itera and Lyse, with great potential for Lyse to grow into a strategic key customer moving forward.

We are fortunate to have Nils Olav Nergaard leading this regional expansion; his extensive experience and successful track record in building strong regional structures will be invaluable as we embark on this journey together. Nils Olav's people-oriented approach aligns perfectly with Itera's values, ensuring that we foster an environment conducive to growth and collaboration.

People

Cultivating growth, diversity and resilience

Our culture is grounded in our growth mindset: Grow our people, Grow our customers, and Grow our company. We remain dedicated to investing in our people, offering learning opportunities and upskilling to ensure we can adapt as our customers' needs change. We believe our unwavering commitment to diversity and inclusion is the right thing to do and an essential element of our business strategy and strong financial performance.

Supporting Ukraine

Our colleagues in Ukraine continue to show admirable courage and resilience in the face of the invasion's consequences. Our Ukrainian unit is running normally, and risk mitigation is continuously being assessed and implemented. The recent increase in the number of Russian missile and drone attacks is not impacting our operation.

To continue our non-stop operations even in blackouts, we have equipped both offices with diesel generators, additional internet access points and charging stations. Our employees in Ukraine are provided with additional power banks and charging stations for their home offices.

The well-being of our Ukrainian colleagues is our priority every day. The number of expats is decreasing as many colleagues have returned to their Ukrainian homes. Twelve of our brave employees are serving in the armed forces. We stay connected with them and provide the support they might need, in addition to a fixed monthly amount from Itera. Our long-term corporate social responsibility to support Ukraine continues.

Recognition from the UN Partnership for Sustainability Awards

A significant achievement in the fourth quarter was the Itera Employee Foundation being selected as a finalist in the Digitalisation category of the UN Partnership for Sustainability Awards. These prestigious international awards recognise the collective efforts of businesses, governments, and civil society to build a better future. This year, it brought together over 500 cases from companies and NGOs in Ukraine, the UK, France, Germany, Switzerland, Sweden, Finland, Croatia, Poland, Georgia, Romania, Bulgaria, and Turkey.

The Itera Employee Foundation programme is a platform dedicated to delivering essential aid directly to our colleagues, their families, and friends who are protecting Ukraine, with a focus on critical supplies that are urgently needed by those on the front lines.

Fostering a culture of continuous learning

In 2024, Itera made significant strides towards fostering a culture of continuous learning and development by implementing 'the Growth Tool', a unified framework designed to support the professional development and career advancement of all employees across our offices. This system has been rolled out in all countries, ensuring consistency in processes and evaluations, contributing to a cohesive development culture regardless of location.

The Growth Tool streamlines collaboration between employees and management, facilitating personalised growth while simplifying the tracking of employee skill progression. By establishing a common framework for competency development plans, we are enhancing individual advancement and reinforcing our commitment to transparency and consistency across the organisation.

This initiative is especially important as it responds to the challenges of keeping talent in a competitive environment. By fostering a culture of shared growth and learning, we are creating a workplace where individuals feel valued and

motivated, ultimately contributing to the organisation's overall success.

Consolidated statement of comprehensive income

	2024	2023	change	2024	2023	change
Amounts in NOK thousand	10-12	10-12	%	1-12	1-12	%
Operating revenue	212 196	222 099	(4 %)	849 059	871 581	(3 %)
Operating expenses
Cost of sales	15 741	15 937	(1 %)	65 889	57 902	14 %
Gross Profit	196 455	206 163	(5 %)	783 170	813 678	(4 %)
Gross Margin	92.6 %	92.8 %	-0.2 pts	92.2 %	93.4 %	-1.1 pts
Personnel expenses	157 699	162 543	(3 %)	634 441	634 359	0 %
Other operating expenses	18 847	17 083	10 %	63 401	68 667	(8 %)
Depreciation and amortisation	8 040	8 479	(5 %)	32 967	32 299	2 %
Impairment of financial assets	4 391	-		4 391	-
Total operating expenses	204 719	204 041	0 %	801 089	793 228	1 %
Of which non-recurring items5	4 391	2 999	46 %	4 391	2 999	46 %
Adjusted EBITDA	19 909	29 536	(33 %)	85 328	113 651	(25 %)
Adjusted operating profit (Adj. EBIT)	11 869	21 057	(44 %)	52 361	78 353	(33 %)
Operating profit (EBIT)	7 477	18 058	(59 %)	47 970	78 353	(39 %)
Other financial income	182	351	(48 %)	1 104	879	26 %
Interest income	747	705	6 %	1 416	1 387	2 %
Other financial expenses	(66)	326	(120 %)	269	1 031	(74 %)
Interest expenses	1 131	1 087	4 %	4 172	2 888	44 %
Foreign exchange (gains) / losses	(339)	807	(142 %)	836	1 288	(35 %)
Net financial income (expenses)	203	(1 165)	117 %	(2 758)	(2 941)	6 %
Profit before taxes	7 680	16 894	(55 %)	45 212	75 412	(40 %)
Income taxes	1 965	5 307	(63 %)	10 264	18 722	(45 %)
Net income	5 716	11 586	(51 %)	34 948	56 690	(38 %)
Other comprehensive income
Transl. diff. on net investment in foreign operations	(9 459)	(1 416)	(568 %)	(8 688)	(346)	(2 412 %)
Total comprehensive income	(3 743)	10 171	(137 %)	26 260	56 344	(53 %)
Total comprehensive income attributable to:
Shareholders in parent company	(3 743)	10 171	(137 %)	26 260	56 344	(53 %)
Earnings per share	0.07	0.14	(51 %)	0.43	0.70	(38 %)
Fully diluted earnings per share	0.07	0.14	(51 %)	0.43	0.70	(38 %)

Consolidated statement of financial position

	2024	2023	change	change
Amounts in NOK thousand	31 Dec	31 Dec		%
ASSETS
Non-current assets
Deferred tax assets	4 329	3 654	675	18 %
R&D	27 224	30 853	(3 630)	(12 %)
Other intangible assets	5 484	273	5 211	1 908 %
Property, plant and equipment	12 193	16 213	(4 020)	(25 %)
Right-of-use assets	60 288	74 582	(14 294)	(19 %)
Total non-current assets	109 517	125 575	(16 058)	(13 %)
Current assets
Contract assets	8 471	3 452	5 019	145 %
Accounts receivable	96 733	107 770	(11 036)	(10 %)
Other receivables	11 085	13 193	(2 107)	(16 %)
Cash and cash equivalents	52 638	49 209	3 429	7 %
Total current assets	168 928	173 623	(4 696)	(3 %)
TOTAL ASSETS	278 445	299 198	(20 753)	(7 %)
EQUITY AND LIABILITIES
Equity
Share capital	24 656	24 656	-	0 %
Other equity	(12 919)	(33 459)	20 541	61 %
Net income for the period	34 948	56 690	(21 742)	(38 %)
Total equity	46 686	47 887	(1 202)	(3 %)
Non-current liabilities
Deferred tax liabilities	1 875	1 023	852	83 %
Other provisions and liabilities	(0)	759	(759)	(100 %)
Long-term interest bearing debt	2 750	3 750	(1 000)	(27 %)
Lease liabilities - long-term portion	49 742	63 613	(13 872)	(22 %)
Total non-current liabilities	54 367	69 146	(14 779)	(21 %)
Current liabilities
Accounts payable	20 153	18 288	1 865	10 %
Tax payable	6 361	12 183	(5 822)	(48 %)
Public duties payable	54 729	58 503	(3 773)	(6 %)
Contract liabilities	17 439	14 292	3 148	22 %
Lease liabilities - short term	14 466	13 874	592	4 %
Current portion of long-term debt	1 000	1 000	-	0 %
Other current liabilities	63 244	64 026	(782)	(1 %)
Total current liabilities	177 392	182 165	(4 773)	(3 %)
Total liabilities	231 760	251 311	(19 552)	(8 %)
TOTAL EQUITY AND LIABILITIES	278 445	299 198	(20 753)	(7 %)
Equity ratio	16.8 %	16.0 %		0.8 pts

Consolidated statement of cash flow

	2024	2023	change	2024	2023	change
Amounts in NOK thousand	10-12	10-12		1-12	1-12
Profit before taxes	7 680	16 894	(9 213)	45 212	75 412	(30 200)
Income taxes paid	1 4	323	(309)	(9 808)	(11 848)	2 040
(Profit)/loss from sale of assets	-	(25)	2 5	-	(313)	313
Interest expense	1 131	1 087	4 5	4 172	2 888	1 285
Interest paid	(373)	(159)	(214)	(881)	(566)	(314)
Depreciation and amortisation	8 040	8 479	(439)	32 967	32 299	667
Share option costs	298	123	175	1 545	1 655	(110)
Change in contract assets	(5 135)	(415)	(4 719)	(5 019)	(3 227)	(1 793)
Change in accounts receivable	27 906	29 828	(1 922)	15 781	(8 799)	24 580
Change in accounts payable	4 604	2 276	2 328	1 784	1 529	255
Effect of changes in exchange rates	704	(1 012)	1 717	1 425	(345)	1 770
Change in other accruals	400	(247)	647	(13 447)	7 025	(20 472)
Net cash flow from operating activities	45 271	57 150	(11 879)	73 731	95 709	(21 979)
Payment from sale of fixed assets	-	2 5	(25)	-	357	(357)
Investment in subsidiaries net of cash	1 662	-	1 662	1 662	-	1 662
Investment in fixed assets	(1 324)	(1 773)	449	(3 006)	(10 908)	7 903
Investment in intangible assets	(1 841)	(2 112)	270	(7 421)	(8 870)	1 449
Net cash flow from investing activities	(1 504)	(3 860)	2 356	(8 765)	(19 421)	10 656
Purchase of own shares	-	(11 794)	11 794	-	(11 873)	11 873
Sale of own shares	-	-	-	4 853	6 237	(1 385)
Equity settlement of options contract	-	2 675	(2 675)	-	2 943	(2 943)
Principal elements of lease payments	(4 348)	(4 251)	(97)	(17 292)	(15 207)	(2 085)
Long term borrowings	(250)	(250)	-	(1 000)	4 750	(5 750)
Dividends paid to equity holders of Itera ASA	(16 301)	(32 204)	15 903	(48 717)	(56 860)	8 143
Net cash flow from financing activities	(20 899)	(45 824)	24 925	(62 156)	(70 010)	7 854
Effects of exchange rate changes on cash	(27)	(413)	386	619	997	(378)
Net change in cash and cash equivalents	22 841	7 053	15 788	3 429	7 275	(3 846)
Cash and cash equivalents beginning of period	29 797	42 156	(12 359)	49 209	41 934	7 275
Cash and cash equivalents end of the period	52 638	49 209	3 428	52 638	49 209	3 428

Consolidated statement of changes in equity

Amounts in NOK thousand	Share capital	Own shares	Other paid in equity	Cumulative translation differences	Other equity	Total equity
Equity as of 1 Jan 2023	24 656	(483)	(33 892)	1 260	57 901	49 442
Net income for the period	-	-	-	-	56 690	56 690
Other comprehensive income for the period	-	-	-	(346)	-	(346)
Share option costs	-	-	1 655	-	-	1 655
Equity settlement of options contract	-	85	2 858	-	-	2 943
Purchase of own shares	-	194	6 043	-	-	6 237
Sale of own shares	-	(292)	(11 581)	-	-	(11 873)
Dividends	-	-	-	-	(56 860)	(56 860)
Equity as of 31 Dec 2023	24 656	(496)	(34 918)	914	57 731	47 888
Net income for the period	-	-	-	-	34 948	34 948
Other comprehensive income for the period	-	-	-	1 443	-	1 443
Share option costs	-	-	1 545	-	-	1 545
Sales of own shares	-	292	9 288	-	-	9 579
Dividends	-	-	-	-	(48 717)	(48 717)
Equity as of 31 Dec 2024	24 656	(205)	(24 085)	2 357	43 962	46 686

Key figures

	2024	2023	change	2024	2023	change
Amounts in NOK thousand	10-12	10-12	%	1-12	1-12	%
Profit & Loss
Operating revenue	212 196	222 099	(4 %)	849 059	871 581	(3 %)
Gross profit	196 455	206 163	(5 %)	783 170	813 678	(4 %)
Adjusted EBITDA	19 909	29 536	(33 %)	85 328	113 651	(25 %)
Adjusted EBITDA margin	9,4%	13,3 %	-3,9 pts	10,0%	13,0 %	-3 pts
Adjusted operating profit (EBIT)	11 869	21 057	-44 %	52 361	81 352	-36 %
Adjusted EBIT margin	5,6 %	9,5 %	-3,9 pts	6,2 %	9,3 %	-3,2 pts
Operating profit (EBIT)	7 477	18 058	(59 %)	47 970	78 353	(39 %)
EBIT margin	3,5%	8,1 %	-4,6 pts	5,6%	9,0 %	-3,3 pts
Profit before taxes	7 680	16 894	(55 %)	45 212	75 412	(40 %)
Net income	5 716	11 586	(51 %)	34 948	56 690	(38 %)
Balance sheet
Non-current assets	109 517	125 575	(13 %)	109 517	125 575	(13 %)
Bank deposits	52 638	49 209	7 %	52 638	49 209	7 %
Other current assets	116 290	124 414	(7 %)	116 290	124 414	(7 %)
Total assets	278 445	299 198	(7 %)	278 445	299 198	(7 %)
Equity	46 686	47 887	(3 %)	46 686	47 887	(3 %)
Total non-current liabilities	54 367	69 146	(21 %)	54 367	69 146	(21 %)
Total current liabilities	177 392	182 165	(3 %)	177 392	182 165	(3 %)
Equity ratio	16,8%	16,0 %	0,8 pts	16,8%	16,0 %	0,8 pts
Current ratio	0,95	0,95	(0%)	0,95	0,95	(0%)
Cash flow
Net cash flow from operating activities	45 271	57 150	(21%)	73 731	95 709	(23%)
Net cash flow	22 841	7 053	224 %	3 429	7 275	(53%)
Share information
Number of shares	82 186 624	82 186 624	0 %	82 186 624	82 186 624	0 %
Weighted average basic shares outstanding	81 273 947	80 885 454	0 %	80 909 300	81 061 511	(0%)
Weighted average diluted shares outstanding	81 273 947	81 072 419	0 %	80 920 242	81 314 497	(0%)
Earnings per share	0,07	0,14	(51%)	0,43	0,70	(38%)
Diluted earnings per share	0,07	0,14	(51%)	0,43	0,70	(38%)
EBITDA per share	0,24	0,37	(33%)	1,05	1,40	(25%)
Equity per share	0,57	0,59	(3%)	0,58	0,59	(2%)
Dividend per share	0,20	0,40	(50%)	0,60	0,70	(14%)
Employees
No. of employees at the end of the period	725	758	(4%)	725	758	(4%)
Average number of employees	712	760	(6%)	722	741	(2%)
Operating revenue per employee	298	292	2 %	1 175	1 177	(0%)
Gross profit per employee	276	271	2 %	1 084	1 099	(1%)
Personnel expenses per employee	221	214	4 %	878	857	3 %
Other operating expenses per employee	26	22	18 %	88	93	(5%)
EBITDA per employee	28	39	(28%)	118	153	(23%)
EBIT per employee	11	24	(56%)	66	106	(37%)

Quarterly development 2022-2024

Notes

Note 1: General and accounting principles

Itera (the Group) consists of Itera ASA (the Company) and its subsidiaries. Itera ASA is a public limited liability company incorporated in Norway and listed on the Oslo Stock Exchange with the ticker ITERA. The condensed consolidated interim financial statements cover the Group. As a result of rounding differences, some numbers and percentages may not add up to the totals given.

These interim condensed consolidated financial statements for the quarter ending 31 December 2024 have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all the information and disclosures required for annual financial statements and should be read in conjunction with the Group's annual report for 2023. The accounting policies applied in the preparation of these interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2023. The interim financial information contained in this report has not been audited or reviewed.

The cash flow statements for the financial year 2024 and 2023 have been revised to reflect the reclassification of interest expenses related to leasing, now presented as an adjustment to cash flows from operating activities. Furthermore, the principal components of lease payments are to be reported on a gross basis, rather than net of interest expenses as was previously disclosed.

In the fourth quarter of 2024, Itera has had a new type of revenue related to its Enter Ukraine with Itera service offering. Under these contracts, Itera may offer advisory services and onsite business support as well as act as a sales agent for the customers on a commission basis. The revenue stream may vary from contract to contract with elements recognised either point-in-time and/or over time depending on the attributes of Itera's performance obligations.

Note 2: Transactions with related parties

There have been no material transactions with related parties during the reporting period 1 January 2024 to 31 December 2024.

Note 3: Events after the balance sheet date

There have been no events after 31 December 2024 that would have a material effect on the interim accounts.

Note 4: Alternative performance measures

In accordance with the guidelines issued by the European Securities and Markets Authority on alternative performance measures (APMs), Itera publishes definitions for the alternative performance measures used by the company. Alternative performance measures, i.e. performance measures not based on financial reporting standards, provide the company's management, investors and other external users with additional relevant information on the company's operations by excluding matters that may not be indicative of the company's operating result or cash flow. Itera has adopted non-recurring costs, EBITDA, EBITDA margin, EBIT, EBIT margin and equity ratio as alternative performance measures both because the company thinks these measures will increase the level of understanding of the company's operational performance and because these represent performance measures that are often used by analysts and investors and other external parties.

Non-recurring costs are significant costs that are not expected to reoccur under normal circumstances.

EBITDA is short for earnings before interest, tax, depreciation, and amortisation. It is calculated as profit for the period before (i) tax expense, (ii) financial income and expenses and (iii) depreciation and amortisation.

EBITDA margin is calculated as EBITDA as a proportion of operating revenue.

EBIT is short for earnings before interest and tax and is calculated as profit for the period before (i) tax expense and (ii) financial income and expenses.

EBIT margin is calculated as EBIT as a proportion of operating revenue.

Adjusted EBITDA and Adjusted EBIT refer to adjustments made for non-recurring items.

Note 5: Non-recurring costs

In the fourth quarter of 2024, Itera wrote off the entire NOK 4.4 million investment it made in a customer partnership in 2023 after deciding not to pursue this venture further due to this company's inability to fund a market expansion and generate profits. The investment was made through service deliveries that could potentially be converted to equity.

In the fourth quarter of 2023 Itera incurred or took provisions for costs of NOK 3.0 million to streamline its operations and improve future profitability. The actions were part of a business optimisation program intended to improve margins.

Note 6: Acquisitions

Itera acquired the sister companies Revoltr AS and Mosaique Headhunting Stavanger AS on 8 November 2024 from Mosaique Holding AS in predominantly share-based transactions. The total purchase price of NOK 7.5 million consisted of NOK 4,725,000 in Itera shares, NOK 525,000 in cash and a contingent earn-out of NOK 2,250,000 based on the financial performance of 2025. In the purchase price allocation, NOK 5.25 million was attributed to goodwill. The acquired companies impacted consolidated revenue by NOK 4.2 million and EBIT by NOK 0.2 million in the fourth quarter. For 2024 in total, the acquired companies had combined revenue of NOK 25.6 million and EBIT of NOK 1.0 million.

Our strategic position

Itera is a leading international tech company that helps businesses and organisations accelerate their sustainable digital transformation and contribute to the advancement of society.

As companies embrace digital transformation, they come to us as their trusted partner to build their digital core with cloud-based technology because of our full range of services across digital strategy, consulting and execution, customer experience, technology and cloud operations. Our integrated services meet customer needs rapidly and at scale through our distributed multi-disciplined teams and our world-class cross-border Digital Factory at Scale that enables more for less.

There is no more powerful contributor to business growth than digital technology. Digital technology will accelerate growth beyond what was previously possible with people and machines. When talking to executives, Itera always finds that they highlight speed and results from digital initiatives as their top priorities.

Our focused customer-centric strategy in selected industries and ONE operating model across all locations offer the right mix of autonomy and alignment. Our entrepreneurial culture is grounded in a strong growth mindset of 'grow our people, our customers and our company'. Our business model combines consulting services (the inner circle in the figure to the left) with subscription-based managed services such as package offerings and industrialised services (the outer circle).

We are seeing all emerging technology become digital capabilities in the cloud, which constitutes a dynamic continuum from public and hybrid cloud to edge and everything in between. Every business must become sustainable and digital; data will be the key to success. Our success is grounded in our ability to anticipate the future and provide digital capabilities for transformation.

These changes will simultaneously create more challenging jobs and career paths for our skilled people. Working from our 15 Nordic and Central and Eastern European offices, we serve customers in more than 20 countries worldwide. We leverage our scale and international footprint, our innovation-led culture, our strong partnerships and our Digital Factory at Scale to consistently deliver tangible value for our customers worldwide.

We are fully committed to something bigger than ourselves and take responsibility for showing how to become more sustainable, how to create new pathways for industrial growth, and how to deliver far-reaching lifestyle changes through digitalisation.

Our locations

Arne Mjøs CEO Tel. +47 905 23 172 arne.mjos@itera.com

Bent Hammer CFO Tel. +47 982 15 497 bent.hammer@itera.com

Itera ASA

Telephone +47 23 00 76 50 Stortingsgata 6 P. O. Box 1384 Vika 0114 Oslo, Norway

www.itera.com

INTERIM REPORT Q4 2024 PAGE 26 OF 26 ITERA