Atea

Earnings Release • Feb 3, 2011

Atea Q4 2010 financial results

Highlights Q4 2010

· Revenue of MNOK 5,959.6, up 35.2% y-o-y

· EBITDA of MNOK 300.2, up 28.1% y-o-y

· EBITDA margin of 5.0%, down from 5.3%

· EBIT of MNOK 244.3, up 61.3% y-o-y

· Earnings after tax of MNOK 309.0, up 32.7% y-

o-y

· Cash flow from operations of MNOK 527.4

· Acquired Umoe IKT in Norway, Benzler Group in

Sweden, Datawest and Ten of Ten in Finland

Full year 2010 overview

EBITDA for the full year ended at MNOK 675.2, up from

MNOK 550.3 in 2009, representing a growth of 22.7%.

EBITDA margin ended at 3.9%, which is up from 3.8% in

2009. EBIT ended at MNOK 474.4, up from MNOK 334.1 in

2009, representing a growth of 42.0%.

Revenue ended at MNOK 17,131.2 versus MNOK 14,588.6

in 2009, corresponding to a growth of 17.4% and 20.9%

in constant currency. Organic growth in constant

currency was 13.3% in a market which according to IDC

grew 4.7%. This implies that Atea continues to gain

considerable market shares. Taking into account the

full year effect of the acquired companies during

2010 the proforma revenue was MNOK 18,876.0.

The Atea Group generated MNOK 558.9 in cash from

operations in 2010, which is down from MNOK 726.5 in

2009. The reduction is mainly due to extraordinary

high prepayments from public customers in Q4 2009. In

addition, the large revenue growth in 2010 requires

additional working capital. Net interest bearing debt

was MNOK 337.3 as of December 31, 2010, and the

operational gearing measured by net interest bearing

debt divided by full year EBITDA was 0.5. This

underlines the continued solid financial position of

the company. Cash payments of MNOK 386.6 related to

acquisitions and net cash payments of MNOK 70.1

related to dividends and sale of own shares were paid

in 2010.

The solid result in 2010 and the company's strong

financial position together with positive

expectations for 2011 give again Atea the opportunity

to pay dividend. The Board of Directors will suggest

to the General Assembly to pay NOK 2.00 per share in

dividend for 2010, up from NOK 1.25 for 2009.

Financial review Q4 2010 and full year 2010

Group

Group revenue in Q4 2010 is up 35.2% from MNOK

4,409.1 in Q4 2009 to MNOK 5,959.6 in Q4 2010. The

growth adjusted for acquisitions represents 21.0%.

This implies that Atea continues gaining market

shares. Hardware revenue increased by 43.7%,

consulting and services revenue was up 23.4% and

software was up 23.7%. The main reason for the high

growth in the hardware revenue is growth in the PC

business (clients). The growth in services correlates

with the growth in hardware and the increase in

software revenue reflects growth in Microsoft-related

products.

EBITDA in Q4 2010 ended at MNOK 300.2, up 28.1% y-o-y

and represents a margin of 5.0%. The improvement in

EBITDA is mainly due to increase in revenue. Group

EBIT ended at MNOK 244.3, which is up 61.3% compared

to corresponding period last year. Earnings after

taxes ended at MNOK 309.0 in the fourth quarter and

reflects MNOK 140.8 in further recognition of the tax

loss carry forward. Tax loss carry forward was NOK

3.8 billion at the end of 2010.

Norway

Revenue in Norway in Q4 2010 was MNOK 1,453.3, which

is up by 38.6% compared with Q4 2009. Product revenue

was up by strong 42.8%, while consulting and services

revenue was up by 21.4%. Especially PC products

(clients) towards public sector shows a good

performance. Revenue growth in Q4 excluding the

impacts from the acquired businesses was 24.3%.

EBITDA for Q4 2010 ended at MNOK 66.6, up 19.0%

compared with Q4 2009. The EBITDA margin was 4.6%,

down from 5.3% in Q4 2009, due to low margin PC sale

combined with increased personnel cost. The increased

personnel cost reflects investments in personnel due

to expected future growth in revenue.

In Q4 2010 Atea acquired the Norwegian IT

infrastructure company Umoe IKT with 384 employees

and offices in 16 cities across the country. The

company has high competences within areas as

telephony, Unified Communication, outsourcing and IT

operation. The acquired company is expected to

deliver revenue of MNOK 850-900 in 2011 with an

EBITDA margin of approximately 5-6% post integration.

The purchase price (equity value) for 100% of the

shares in Umoe IKT was 4.0 million shares in Atea ASA

corresponding to an enterprise value of MNOK 154.8

(based on a share price of NOK 51.0 at the time of

agreement.)

For the full year 2010 the revenue was MNOK 4,213.0,

up 18.1% y-o-y. EBITDA for the year ended at MNOK

181.4, a margin of 4.3%, up from 3.8% in 2009.

According to IDC the Norwegian IT infrastructure

market (Atea blue box) grew 2.0% in 2010 (2009: -

6.2%). Hence, Atea in Norway is still gaining market

shares.

Sweden

Sweden reached revenue of MNOK 1,992.0 in Q4 2010,

which is up 62.2% (53.8% in constant currency)

compared with Q4 2009. Product revenue was up 54.1%

and consulting and services revenue was up 52.0% in

constant currency. Revenue growth in Q4 2010,

excluding impacts from acquired businesses, was 24.4%

in constant currency. The organic growth in product

revenue was 23.4% and for consulting and services

revenue was 29.3% in constant currency. EBITDA for Q4

2010 ended at MNOK 98.2, up 57.7% (51.3% in constant

currency) and implying an EBITDA margin of 5.0%, the

same level as Q4 2009. As announced in the Q3 2010

report Atea has charged MNOK 10 in Q4 2010 in

integration cost related to acquisitions. Both

product and services margins are below the level of

previous year. The combined effects from change in

revenue mix together with an increase in low-margin

products (clients) are causing the overall gross

margin to fall.

In Q4 2010 Atea entered into agreement to acquire

Benzler Group, an IT infrastructure company with a

strong market position in the Gothenburg area and

offices in six cities across South West Sweden. The

company has 60 employees and is expected to deliver

revenue of MNOK 262.0 and EBITDA of MNOK 10.6 in the

fiscal year ending 30 June 2011. The enterprise value

was MNOK 53.1

For the full year 2010 the revenue was MNOK 5,238.3,

up 32.1% (29.4% in constant currency) y-o-y . EBITDA

for the year ended at MNOK 206.4, a margin of 3.9%,

up from 3.5% in 2009. According to IDC the Swedish IT

infrastructure market (Atea blue box) grew by 4.3% in

2010 (2009: -7.4%). Hence, Atea in Sweden is still

gaining market shares in the biggest Nordic IT market.

Denmark

Revenue in Q4 2010 ended at MNOK 1,831.2, up 15.0%

(21.4% in constant currency) compared with Q4 2009.

Product revenue was up 26.3%, while consulting and

services revenue was up 4.5% in constant currency.

Excluding impacts from acquisitions revenue in

constant currency was up 15.9%. Especially PC

products (clients), server/storage, network and

mobile equipment show a strong performance. The

positive development in services reflects the strong

growth in product sales. EBITDA ended at MNOK 107.6

compared with MNOK 103.4 in Q4 2010. EBITDA margin

ended at 5.9%, down from a record high margin of 6.5%

in Q4 2009.

For the full year 2010 the revenue was MNOK 5,569.4,

up 5.9% (15.5% in constant currency) y-o-y. EBITDA

for the year ended at MNOK 239.0, a margin of 4.3%,

down from record high 5.0% in 2009. According to IDC

the Danish IT infrastructure market (Atea blue box)

grew 5.4% in 2010 (2009: -9.6%). Hence, Atea in

Denmark is still gaining market shares.

Finland

Revenue in Finland in Q4 2010 ended at MNOK 533.0,

which is up 24.5% (31.0% in constant currency)

compared with Q4 2009. Product business is still

performing well and is up 28.3%, while consulting and

services is up 69.5% in constant currency. Revenue

growth excluding impacts from acquired businesses is

18.8% in constant currency. The revenue growth

reflects large deliveries to public sector. EBITDA for

Finland was up from MNOK 11.7 in Q4 2009 to MNOK 17.9

in Q4 2010. Improvement in EBITDA is due to acquired

companies combined with organic revenue growth.

In Q4 2010 Atea acquired Ten of Ten, a specialized

virtualization services company with 9 employees and

expected revenue of MNOK 11.4 and EBITDA of MNOK 2.6

in 2011. The enterprise value was MNOK 4.3. In

addition, the IT infrastructure company Datawest was

acquired. Datawest operates in South Western Finland,

has 16 employees and expected revenue of MNOK 57.0

and EBITDA of MNOK 1.6 in fiscal year ending May

2011. Enterprise value was MNOK 5.7.

For the full year 2010 the revenue was MNOK 1,716.6,

up 14.3% (24.7% in constant currency) y-o-y. EBITDA

for the year ended at MNOK 35.4, a margin of 2.1%, up

from 0.9% in 2009. According to IDC the Finnish IT

infrastructure market grew by 7.3% in 2010 (2009: -

9.7%). Hence, Atea in Finland is still gaining market

shares.

The Baltics

Revenue in the Baltics in Q4 2010 was MNOK 152.6,

which is up 32.6% (41.2% in constant currency) from

Q4 2009 and is primarily reflecting EU funded

projects.

EBITDA in Q4 2010 was MNOK 9.8 compared with MNOK 4.2

previous year. The increase in EBITDA reflects the

growth in revenue. The market in the Baltic region is

still difficult but there are signs of pick up,

particularly in Latvia.

For the full year 2010 the revenue was MNOK 401.2, up

34.0% (46.1% in constant currency) y-o-y. EBITDA for

the year ended at MNOK 15.2, a margin of 3.8%, up

from 3.3% in 2009.

Outlook

According to IDC the total Nordic IT infrastructure

market targeted by Atea grew by 4.7% in 2010, while

Atea in the same period experienced an organic growth

in constant currency of 13.3%.

The IDC forecast for 2011 is a total market growth of

4.4%. Important technology trends, such as Unified

Communication, Mobile Infrastructure Solutions,

Virtualisation, Software Asset Management, Device

Lifecycle Management, Windows 7, Consumerization and

Green IT, areas in which Atea has established a

strong presence through organic initiatives and

acquisitions during 2009 and 2010, will continue to

fuel IT investments going forward. In 2011 Atea is

therefore well positioned to once again grow at a

pace which is faster than the market in general and

to continue gaining market shares.

The Group is expecting to grow organically with 9% in

2011 and together with the revenue of NOK 2.5 billion

from the acquired companies in 2010 Atea is quite

confident to pass NOK 20 billion in revenue. On the

cost side, there will still be some costs from the

integration, but important synergies will be gained

already in 2011. With a firm focus on cost and EBITDA

margin Atea maintain the ambition to reach 1 billion

in EBITDA.

Equity and cash flow

Shareholders' equity as of December 31, 2010 was MNOK

3,354.1 and minority interests were MNOK 1.1

corresponding to an equity ratio of 34.8%, down from

39.3% compared to December 31, 2009, mainly due to an

increase in the total balance caused by increases in

revenue and thereby a higher level of current

receivables and liabilities.

The Group generated an operational cash flow of MNOK

558.9 for the full year of 2010. This is MNOK 167.6

below last year and is due to a build up in working

capital caused by a strong increase in revenue and

some increases in customer specific inventory. As

explained during the Q4 presentation last year the

2009 cash flow was also exceptionally strong fuelled

by some one time effects of approximately MNOK 100.

In Q4 2010 the operational cash flow was MNOK 527.4,

on same level as Q4 2009.

During Q4 2010 capital expenditures were MNOK 46.6

and payments regarding acquisitions were MNOK 107.6.

The acquisition payments are related to Datawest and

Ten of Ten in Finland, Benzler Group in Sweden and

Umoe IKT in Norway. A total interest bearing debt of

MNOK 17.4 was included in the balance sheet from

these companies in addition to the cash payments

(MNOK 107.6).

Cash flow from equity transactions was MNOK 15.3 in

Q4 2010 and is related to a sale of shares in

connection with Atea's share option program.

The working capital ratio as of December 31, 2010,

was 0.7% which is same level as 0.5% achieved in

corresponding period in 2009. Net interest bearing

position as of December 31, 2010, compared to

September 30, 2010, decreased by MNOK 393.7 from MNOK

731.0 to MNOK 337.3. Cash reserves including

unutilised credit facilities as of December 31, 2010,

were MNOK 1,499.7.

Note: The statements have been prepared according to

IFRS.

Enclosures on [http://www.newsweb.no]

Please go to [http://www.atea.com/reports] for the

quarterly report and presentation.

Video of the press conference is available at

[http://www.atea.com/webcast]

For further information, please contact:

Claus Hougesen, CEO Atea ASA, Mobile +45 3078 1200

Rune Falstad, CFO Atea ASA, Mobile +47 906 14 482

About Atea

Atea is the leading Nordic and Baltic supplier of IT

infrastructure with approximately 5400 employees.

Atea is present in 79 cities in Norway, Sweden,

Denmark, Finland, Lithuania, Latvia and Estonia. Atea

delivers IT products from leading vendors and assist

its customers with specialist competencies within IT

infrastructure services. Atea had revenue of

approximately NOK 17 billion in 2010 and is listed on

Oslo Stock Exchange. [http://www.atea.com]