Atea — Interim / Quarterly Report 2010

Apr 29, 2010

Atea - Q1 2010

Highlights Q1 2010

• Revenue of MNOK 3,570.9, up 1.9% y-o-y, up 6.9% in constant currency
• EBITDA of MNOK 119.7, up 31.3%
• EBITDA margin of 3.4%, up from 2.6%
• EBIT of MNOK 76.1, up 61.3%
• Acquired four Office print/copy companies in Sweden
• Acquired PALnet Oy, leading provider within network and data security in Finland
• Acquired Impact Europe's subsidiaries in Sweden and Norway (April 26)

Actual Q1 2010 vs. actual Q1 2009

Group

Group EBITDA for Q1 2010 ended at MNOK 119.7, which is up from MNOK 91.2 in Q1 2009, representing an improvement of 31.3%. EBITDA margin ended at 3.4% which is up from 2.6% in the corresponding period last year.

The improvement in EBITDA is mainly due to improvement in product margins combined with continued cost focus. Group revenue ended at MNOK 3,570.9, up by 1.9% y-o-y, but up 6.9% in constant currency. Organic growth in constant currency was 4.2%. This is achieved in a market that is estimated by IDC to grow by 1.7% in 2010 and indicates that Atea has continued to gain market shares. Product revenue was up as much as 9.6% in constant currency while services revenue was down by 2.2%. Reduction in services revenue reflects lower service activity in January/February and 80 less consultants.

Group EBIT ended at MNOK 76.1, which is up by 61.3% compared to corresponding period last year.

Atea entered April 26, 2010 into agreement with Impact Europe Group AB, a leading Tandberg videoconferencing reseller and AV solutions provider, to acquire Impact Europe's subsidiaries in Sweden and Norway with a total of 59 employees. The acquired business is expected to generate revenue of MNOK 157.8 and EBITDA of MNOK 6.6 proforma in 2010. The transaction value (enterprise value) is MNOK 40.9 and will be paid in cash upon completion of the transaction.

Norway

Revenue in Norway in Q1 2010 was MNOK 835.2, which is down by 8.1% compared with Q1 2009. Product revenue was down by 9.4% and services revenue was down by 3.5%. Q1 2009 was especially impacted by a MNOK 82.0 delivery to Kongsberg Maritime. IDC predicts annual 2010 growth y-o-y for Norway to be -0.6% (2009: -8.3%).

EBITDA for Q1 2010 ended at MNOK 37.8, 32.7% better compared with Q1 previous year. Cost reductions made during 2009 have lowered the cost base for Q1 2010. Better overall gross margin (28.8% vs. 26.2%) is bridging the negative volume gap, thus total gross contribution is MNOK 3.1 higher than previous year. EBITDA margin for Q1 2010 is at a very satisfying 4.5% compared with 3.1% for Q1 previous year.

The order backlog going into Q2 is satisfying. Several large public contracts have been won in Norway in the beginning of 2010, i.e. the frame agreement to deliver IT equipment and services to the Norwegian health authorities (Helseforetakene i Norge). The agreement is for two years with a possibility of 1+1 more optional years. The health authorities estimate that the agreement will give a total of more than MNOK 400 in yearly revenue, divided between the chosen suppliers.

Denmark

Denmark continued the strong performance and delivered a revenue of MNOK 1,235.3, which is up 12.5% in constant currency. Product revenue is up by 17.1% while consulting and services revenue was down by 1.3%. Excluding revenue for the recently acquired Calamus Danmark (5 January, 2010), revenue was up by 7.0%. IDC prediction for annual 2010 growth y-o-y for Denmark is 0.3% (2009: -9.6%), thus Denmark is still gaining market shares. Especially the server business has shown a strong Q1 performance. Order backlog is strong going into Q2.

EBITDA ended at MNOK 52.4, up 32.6% in constant currency. The EBITDA margin was 4.2% compared with 3.6% for Q1 2009. Total gross margin was slightly below the level of previous year. However, product margin is peaking positively. Cost base is up caused by the acquisition of Calamus Danmark with 87 employees. Apart from that, cost level is lower.

Sweden

Revenue in Sweden in Q1 was MNOK 977.0, which is up by 7.2% in constant currency. Product revenue was up by 10.3%, while consulting and services revenue was down by 1.7%. Number of billable consultants is about 70 lower compared with previous year, implying a lower cost base. Productivity per consultant is, however, increasing and at a satisfying level going forward.

During Q1 (medio February) Sweden acquired four Office print/copy companies at an enterprise value of MNOK 38.5 and with a full year 2010 budgeted revenue of MNOK 163.1 and an EBITDA of MNOK 12.4. Revenue growth in Q1, excluding impacts from acquired business, was 6.1% in constant currency, compared with IDC predictions for annual 2010 growth for Sweden of 3.9% y-o-y (2009: -8.0%). Hence, Sweden is gaining market shares. Order backlog is strong going into Q2.

EBITDA for Q1 ended at MNOK 31.4, 52.6% above previous year in constant currency. EBITDA margin increased from 2.3% to 3.2%. Product margin was above previous year, while total gross margin was below previous year, mainly caused by the change in revenue mix. In spite of approximately 90 additional employees from acquired units, cost level is below Q1 2009 level, implying that cost programs have given the expected impacts.

Finland

Revenue in Finland in Q1 ended at MNOK 440.7, which is up by 18.9% in constant currency from Q1 2009. Especially the product business is performing well, showing an increase of 21.5%. Consulting and services revenue has, however, had a drop of 14.5%.

Medio February, Finland entered into agreement to acquire all shares in PALnet, which is a leading supplier and service provider within information network and data security solutions related to local area networks. PALnet was acquired at an enterprise value of MNOK 46.0 and with expected revenue in 2010 of MNOK 104.7 and EBITDA of MNOK 11.3.

Revenue growth in constant currency for Q1, excluding the impacts from PALnet and A Communications (acquired Q4 2009), is 13.6%, to be compared with IDC predictions for annual 2010 growth for Finland of 1.4% y-o-y (2009: -8.6%). Hence Finland is gaining market shares. The order backlog going into Q2 is strong.

EBITDA for Finland was up from MNOK 0.1 in Q1 2009 to MNOK 4.1 in Q1 2010. Total gross margin is increasing from 14.6% to 15.2%, while the cost base is up MNOK 3.1, partly caused by 41 additional employees from the acquired units.

Note: All EBITDA figures are before share-based option cost and acquisition cost.

Note: There may be figures and percentages that do not always add up exactly due to rounding differences.

Note: The interim financial statements have been prepared in accordance with IFRS standard for interim financial reporting (IAS 34).

The statements have been prepared consistent with accounting principles used in the financial statements for 2009, plus IFRS 8, IAS 23 (Revised), IFRS 2 (Amendment), IAS 1 (Revised).

ATEA

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The Baltics

Revenue in the Baltics in Q1 was MNOK 81.0, which is up 57.2% in constant currency. The main reason is EU funded program for Ministry of Education, in total a revenue of MNOK 13.8. Due to low product margins the gross contribution is still MNOK 2.4 below the Q1 2009 level. Due to orders to the Municipality the order backlog going into Q2 is satisfying in spite of a generally difficult market.

EBITDA in Q1 is MNOK 0.8 compared with MNOK 0.3 the previous year. The substantial cost reductions made during 2009 have made it possible to cover up the drop in gross margin and show an EBITDA margin of 1.0% in a challenging market environment.

Outlook

According to IDC, the total Nordic IT infrastructure market targeted by Atea declined by 8.5% in 2009. The IDC forecast for 2010 is a total market growth of 1.7%. Important technology trends, such as Unified Communication, Mobile Infrastructure Solutions, Virtualisation, Software Asset Management, Desktop Lifetime Management, Windows 7 and Green IT, areas in which Atea has established a strong presence through organic initiatives and acquisitions during 2009 and beginning of 2010, will help fuel IT investments going forward.

Atea is expecting to continue gaining market shares during 2010. The cost base has been trimmed during 2009 and implies that the run rate going into 2010 is lower than the run rate going into 2009.

It is expected that the positive organic development in 2010 will be supplemented by growth through acquisitions, as Atea has the financial strength and a clear intent to continue playing an important role in the ongoing market consolidation.

The target goal is to achieve revenues of NOK 20 billion and EBITDA of NOK 1 billion in 2011, based on country targets for revenue and profit in local currencies.

Equity and cash flow

Shareholders' equity as of March 31, 2010 was MNOK 2,895.7 and minority interests were MNOK 3.7 corresponding to an equity ratio of 44.5%. This is up from 40.0% compared to March 31, 2009.

Statement of changes in equity

(amounts in MNOK)	Actual
	31.03.2010	31.03.2009
Equity per 01.01	2 813,0	2 859,1
Currency translation differences *	-20,2	-281,8
Other comprehensive income	-29,2	-281,8
Profit/loss for the period	73,8	37,5
Total recognised income/experse for the year	44,6	-244,3
Changes related to own shares	40,6
Employee share- option schemes	1,2	3,6
Equity per 31.03	2 899,4	2 618,4

• Hereby long-term liabilities, Group companies -22,8 in 2010

The Group generated an operational cash flow of MNOK 27.1 during Q1, 2010. This is MNOK 86.2 below corresponding period last year and is explained by a larger amount of prepayments from customers at the end of 2009 which led to a record strong cash flow in Q4, 2009. The operational cash flow has also been affected by a build up in inventory expecting increased revenue related to the "Free Choice" in Denmark in Q2, 2010. The working capital ratio as of 31 March, 2010 was 1.7% which is down from 2.7% as of 31 March, 2009.

During Q1, 2010 ordinary investments were MNOK 16.6 and payments regarding acquisitions were MNOK 93.0. The acquisition payments are related to Calamus in Denmark, PALnet in Finland and the four Office print/copy companies in Sweden. A total interest bearing debt of MNOK 74.4 was acquired through these companies in addition to the cash payments (MNOK 93.0).

Cash flow from equity transactions was MNOK 32.2 in Q1, 2010 and is related to sale of own shares for the employee option program.

Net interest bearing position as of 31 March, 2010 compared to 31 December, 2009 increased by MNOK 125.3 from MNOK 214.1 to MNOK 339.4. Cash reserves including unutilised credit facilities as of 31 March, 2010 were MNOK 1,186.4.

Cash flow statement	Q1
(amounts in MNOK)	2010	2009
Cash earnings	116,0	77,9
Changes in work. cap./accr. items	-88,8	35,3
Cash flow operations	27,1	113,3
Ordinary investments	-16,6	-15,7
Purch./sale of subs./assoc./investm.	-93,0	0,5
Cash flow from investments	-109,7	-19,2
Change in debt	71,5	-297,4
Equity issues / purchase & sale own shares	32,2	0,0
Cash flow from financing	103,7	-297,4
Change in cash	21,2	-203,2
Cash, start of period	194,5	568,2
Cash, end of period	226,4	296,8
Currency effects on cash and cash equivalents	10,7	-68,1

Employees

As of 31 March, 2010 the Group had 4,589 employees, an increase of 209 persons since the end of December 2009. Out of the total increase, 198 employees are related to acquired companies.

Head count	31.03.2010	31.12.2009
Norway	897	887
Sweden	1 439	1 335
Denmark	1 391	1 300
Finland	346	332
Logistics	391	198
Group	9	9
The Baltics	316	319
Total	4 589	4 380

Shares

Atea ASA had 9,505 shareholders as of 31 March, 2010 compared to 10,166 as of 31 December, 2009. The 20 largest shareholders as of 31 March, 2010 were:

Main Shareholders *	Shares	%
CONSOLIDATED HOLDINGS A/S **	28 438 490	29,77%
STATE STREET BANK & TRUST CO. ***	3 079 860	3,22%
GOLDMAN SACHS INT. - EQUITY ***	2 868 276	3,00%
BANK OF NEW YORK MELLON ***	1 926 641	2,02%
ATEA ASA	1 616 601	1,69%
DANSKE BANK A/S ***	1 575 690	1,65%
SEB ENSKILDA ASA	1 500 000	1,57%
ALFRED BERG GAMBAK	1 353 000	1,42%
CARE HOLDING AS	1 200 400	1,26%
VPP NORDEA KAPITAL	1 188 220	1,24%
STATE STREET BANK AND TRUST CO. ***	1 137 145	1,19%
SHB STOCKHOLM CLIENTS ACCOUNT ***	1 108 483	1,16%
JPMORGAN CHASE BANK ***	1 099 920	1,15%
VPP NORDEA AVKASTNING	995 800	1,04%
MORGAN STANLEY & CO INTERNAT. PLC ***	975 253	1,02%
ALFRED BERG NORGE +	914 644	0,96%
SPAR NORD BANK ***	842 569	0,88%
JPMORGAN CHASE BANK ***	770 098	0,81%
ORKLA ASA	750 000	0,79%
NORDEA BANK DENMARK AS ***	749 370	0,78%
OTHER	41 436 562	43,38%
Total number of shares	95 527 022	100,00%

• Source: Verdipapiremtalen
  ** Includes shares held by Ib Kunare
  *** Includes client nominee accounts

End of Q1, 2010, Chairman Ib Kunøe and close associates control a total of 30.1% of the shares, including the shares held in Consolidated Holdings.

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Financial statements by segment

Revenue by segment	1st quarter								Actual (01.01 - 31.03)								Full year 2009
	2010Actual**	2009Actual**	%Change	%Change	2010Pro forma*	2009Pro forma*	Change	%Change	2010Actual**	2009Actual**	%Change	%Change	2010Pro forma*	2009Pro forma*	Change	%Change	Actual**
(amounts in MNDK)
Norway	835,2	908,6	-73,4	-8,1	835,2	908,6	-73,4	-8,1	835,2	908,6	-73,4	-8,1	835,2	908,6	-73,4	-8,1	3 566,3
Sweden	977,0	916,3	-60,7	6,6	988,0	948,0	40,1	4,2	977,0	916,3	60,7	6,6	988,0	948,0	40,1	4,2	3 965,9
Denmark	1 235,5	1 210,9	24,5	2,0	1 235,5	1 264,7	-29,4	-2,3	1 235,5	1 210,9	24,5	2,0	1 235,5	1 264,7	-29,4	-2,3	5 239,6
Finland	440,7	409,0	31,6	7,7	455,2	447,6	7,6	1,7	440,7	409,0	31,6	7,7	455,2	447,6	7,6	1,7	1 501,4
The Baltics	81,0	56,9	24,1	42,4	81,0	56,9	24,1	42,4	81,0	56,9	24,1	42,4	81,0	56,9	24,1	42,4	299,5
Alsea Logistics, Alsea Service Center Riga & Spintop***	624,5	596,1	28,2	4,7	624,5	596,1	28,2	4,7	624,5	596,1	28,2	4,7	624,5	596,1	28,2	4,7	2 437,8
Eliminations	-622,6	-593,8	-28,8		-622,6	-593,8	-28,8		-622,6	-593,8	-28,8		-622,6	-593,8	-28,8		-2 441,9
Alma Group	3 570,9	3 504,0	66,9	1,9	3 596,4	3 628,0	-31,7	-0,9	3 570,9	3 504,0	66,9	1,9	3 596,4	3 628,0	-31,7	-0,9	14 588,6

Operating profit/loss by segment & group profit/loss EAT

(amounts in MNDK)	1st quarter								Actual (01.01 - 31.03)								Full year 2009
	2010Actual**	2009Actual**	%change	%change	2010Pro forma*	2009Pro forma*	Change	%change	2010Actual**	2009Actual**	%change	%change	2010Pro forma*	2009Pro forma*	Change	%change	Actual**
Norway	20,6	19,1	10,3	54,2	20,6	19,1	10,3	54,2	20,6	19,1	10,3	54,2	20,6	19,1	10,3	54,2	95,3
Sweden	25,8	15,7	9,6	61,4	24,5	15,0	9,5	63,2	25,3	15,7	9,6	61,4	24,5	15,0	9,5	63,2	115,3
Denmark	30,5	21,6	9,0	41,5	30,5	24,6	5,9	24,0	30,5	21,6	9,0	41,5	30,5	24,6	5,9	24,0	175,8
Finland	0,2	-2,9	3,1		-0,2	-0,6	0,4	66,6	0,2	-2,9	3,1		-0,2	-0,6	0,4	66,6	-0,5
The Baltics	-1,2	-2,0	0,9	42,8	-5,2	-2,0	0,9	42,8	-1,2	-2,0	0,9	42,8	-5,2	-2,0	0,9	42,8	-0,1
Alsea Logistics, Alsea Service Center Riga & Spintop	0,5	4,1	-4,1		0,2	4,1	-4,2		0,1	4,1		0,2	4,1	-4,2		0,1	16,1
Group total before group cost	84,2	55,4	28,8	51,9	83,0	60,1	22,8	37,9	84,2	55,4	28,8	51,9	83,0	60,1	22,8	37,9	402,2
Group cost	-8,1	-8,2	0,2	2,0	-8,1	-8,2	0,2	2,0	-8,1	-8,2	0,2	2,0	-8,1	-8,2	-8,2	2,0	-68,1
Operating profit/loss (EBIT)	76,1	47,2	28,9	61,3	74,9	51,9	23,0	44,2	76,1	47,2	28,9	61,3	74,9	51,9	23,0	44,2	334,1
Net finance	-6,9	-13,2	-6,3	47,7	-6,9	-13,2	-6,3	47,7	-6,9	-13,2	-6,3	47,7	-6,9	-13,2	-6,3	47,7	-55,0
Profit/loss before taxes for continued operations (EBIT)	69,2	34,0	35,2	103,4	68,0	38,8	29,3	75,5	69,2	34,0	35,2	103,4	68,0	38,8	29,3	75,5	279,1
Taxes	-4,5	-3,4	-1,1	-31,0	-4,5	-3,4	-1,1	-31,0	-4,5	-3,4	-1,1	-31,0	-4,5	-3,4	-1,1	-31,0	-103,3
Net profit/loss for other operations
Profit/loss	73,8	37,5	36,3	96,7	72,5	42,2	30,3	71,9	73,8	37,5	36,3	96,7	72,5	42,2	30,3	71,9	382,4
Shareholders	73,8	37,5	36,3	96,8	72,6	42,2	30,3	71,9	73,8	37,5	36,3	96,8	72,6	42,2	30,3	71,9	382,3
Minority interests	-0,0	-0,0	-0,0	-0,0	-0,0	-0,0	-0,0	-0,0	-0,0	-0,0	-0,0	-0,0	-0,0	-0,0	-0,0	-0,0	0,2

Operating profit/loss before depreciation and unusual items by segment EBITDA (before share based comp., non-core and acquisitions cost/income) ***

(amounts in MNDK)	1st quarter								Actual (01.01 - 31.03)								Full year 2009
	2010Actual**	2009Actual**	%Change	%Change	2010Pro forma*	2009Pro forma*	Change	%Change	2010Actual**	2009Actual**	%Change	%Change	2010Pro forma*	2009Pro forma*	%Change	%Change	Actual**
Norway	37,8	28,4	9,3	32,7	37,8	28,4	9,3	32,7	37,8	28,4	9,3	32,7	37,8	28,4	9,3	32,7	134,4
Sweden	31,4	20,7	10,7	51,8	30,6	20,2	10,4	51,3	31,4	20,7	10,7	51,8	30,6	20,2	10,4	51,3	137,9
Denmark	52,4	43,6	8,8	29,3	52,4	46,6	5,8	12,4	52,4	43,6	8,8	20,3	52,4	46,6	5,8	12,4	264,8
Finland	-4,1	0,1	4,0	7 186,2	4,0	2,4	1,6	66,8	4,0	0,1	4,0	7 186,2	4,0	2,4	1,6	66,8	13,0
The Baltics	0,8	0,3	0,5	143,4	0,8	0,3	0,5	143,5	0,8	0,3	0,5	143,4	0,8	0,3	0,5	143,5	0,8
Alsea Logistics, Alsea Service Center Riga & Spintop	1,0	5,8	-4,8	-83,1	1,0	5,8	-4,8	-83,2	1,0	5,8	-4,8	-83,1	1,0	5,8	-4,8	-83,2	22,9
Group cost	-7,8	-7,8	0,0	0,2	-7,8	-7,8	0,0	0,2	-7,8	-7,8	0,0	0,2	-7,8	-7,8	0,0	-32,5	-32,5
Oper. profit/loss b/disp. and unusual items (EBITDA)	119,7	91,2	28,5	31,3	118,9	96,1	22,8	23,7	119,7	91,2	28,5	31,3	118,9	96,1	22,8	23,7	550,3
EBITDA margin (%)	3,4 %	2,6 %			3,3 %	2,6 %			3,4 %	2,6 %			3,3 %	2,6 %			3,8 %

Financial statements by revenue category

Revenue and contribution & group operating profit/loss	1st quarter								Actual (01.01 - 31.03)								Full year 2009
	2010Actual**	2009Actual**	%change	%change	2010Pro forma*	2009Pro forma*	Change	%Change	2010Actual**	2009Actual**	%change	%change	2010Pro forma*	2009Pro forma*	%Change	%Change	Actual**
(amounts in MNDK)
Consulting and service revenue	745,2	803,3	-58,1	-7,2	749,2	830,2	-81,0	-9,8	745,2	803,3	-58,1	-7,2	749,2	830,2	-81,0	-9,8	3 121,4
Costs revenue	3 461,6	3 307,4	154,2	4,7	3 483,1	3 404,5	7,6	2,1	3 461,6	3 307,4	154,2	4,7	3 483,1	3 404,5	78,5	2,1	13 973,2
Eliminations	-635,9	-606,7	-29,2	-4,8	-635,9	-606,7	-29,2	-4,8	-635,9	-606,7	-29,2	-4,8	-635,9	-606,7	-29,2	-4,8	-2 508,0
Total revenue	3 570,9	3 504,0	66,9	1,9	3 596,4	3 628,0	31,7	-0,9	3 570,9	3 504,0	66,9	1,9	3 596,4	3 628,0	31,7	-0,9	14 588,6
Gross contribution	921,2	906,0	15,2	1,7	927,6	950,6	-23,0	-2,4	921,2	906,0	15,2	1,7	927,6	950,6	-23,0	-2,4	3 592,1
Consulting and service margin	69,8 %	71,6 %			69,9 %	71,1 %			69,8 %	71,6 %			69,9 %	71,1 %			70,1 %
Product margin	11,6 %	10,0 %			11,6 %	10,6 %			11,6 %	10,0 %			11,6 %	10,6 %			10,0 %
Gross margin	25,8 %	25,9 %			25,8 %	26,2 %			25,8 %	25,9 %			25,8 %	26,2 %			24,6 %
Operating expenses	843,0	858,8	15,9	1,8	850,5	898,7	48,1	5,4	843,0	858,8	15,9	1,8	850,5	898,7	48,1	5,4	3 258,0
Operating profit/loss (EBIT)	76,1	47,2	28,9	61,3	74,9	51,9	23,0	44,2	76,1	47,2	28,9	61,3	74,9	51,9	23,0	44,2	334,1
Operating profit/loss margin	2,1 %	1,3 %			2,1 %	1,4 %			2,1 %	1,3 %			2,1 %	1,4 %			2,3 %

Quarterly revenue and contribution & group operating profit/loss

(amounts in MNDK)	1st quarter								1st quarter
	Q1 2009	Q2 2009	Q3 2009	Q4 2009	Q1 2010
Consulting and service revenue	803,3	800,6	759,6	901,1	749,2
Product revenue	3 404,5	3 628,9	2 944,0	4 406,5	-752,2
Eliminations	-606,7	-512,6	-636,5	-752,2
Total revenue	3 628,0	3 916,9	3 017,1	4 555,3	3 596,4
Gross contribution	950,6	954,4	814,6	1 057,5	927,6
Consulting & Service margin	71,6 %	71,3 %	69,2 %	68,5 %	69,8 %
Product margin	10,0 %	10,1 %	10,4 %	9,7 %	11,6 %
Gross margin	25,9 %	25,9 %	26,6 %	25,0 %	25,8 %
Operating expenses	858,8	835,3	703,1	828,4	842,7
Operating profit/loss (EBIT)	47,2	71,1	64,3	151,4	76,1
Operating profit/loss margin	1,3 %	1,9 %	2,2 %	5,4 %	2,1 %

• Pro forma figures include restated full period figures for A Communications, Calamus Danmark, Office print/copy companies, PALnet.
  Actual figures include from 26 Jun 2009 Mondo Hosting (activities), 13 Aug 2009 AC Sikring, 3 Nov 2009 A Communications, 16 Dec 2009 Aprismo (activities), 22 Dec 2009 Uni Networks,
  5 Jan 2010 Calamus Danmark, 14-17 Feb 2010 Office print/copy companies, 17 Feb 2010 PALnet.
  *** Allocation of share based compensation (2) 2010 to countries in MNDK, Norway -0,4, Sweden 0,2, Denmark 0,4, Finland 0,1, The Baltics 0,0, Alsea Logistics, Alsea Service Center Riga & Spintop 0,1, Holding operational 0,2.
  *** Most of Alsaa's internal sales are from these three units, MNDK 613,6 for Q1 2010 and MNDK 588,2 for the same period last year.

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Group income & balance sheet

Statements of comprehensive income

(amounts in MNOK)	1st quarter		Year to date (01.01 - 31.03)		Full year
	Actual 2010	Actual 2009	Actual 2010	Actual 2009	Actual 2009
Operating revenues	3 570,9	3 504,0	3 570,9	3 504,0	14 588,6
Goods consumed	2 649,7	2 597,9	2 649,7	2 597,9	10 996,5
Wages and social costs	657,3	663,8	657,3	663,8	2 480,0
Other operating expenses	144,1	151,0	144,1	151,0	561,8
EBITDA before share based comp.	119,7	91,2	119,7	91,2	550,3
Non-Core	-	-	-	-	32,3
Expenses/incomes related to acquisition costs	2,1	-	2,1	-	-
Share based compensation	0,7	3,5	0,7	3,5	16,6
Operating profit/loss before depreciation (EBITDA)	116,9	87,7	116,9	87,7	501,4
Depreciation	40,5	40,5	40,5	40,5	167,3
Operating profit/loss (EBIT)	76,1	47,2	76,1	47,2	334,1
Finance income	38,4	13,4	38,4	13,4	90,3
Finance cost	-45,3	-26,5	-45,3	-26,5	-145,2
Net finance	-6,9	-13,2	-6,9	-13,2	-55,0
Profit/loss before taxes for continued operations (EBT)	69,2	34,0	69,2	34,0	279,1
Taxes on continued operations	-4,5	-3,4	-4,5	-3,4	-103,3
Profit/loss for the period	73,8	37,5	73,8	37,5	382,4
Other comprehensive income
Currency translation differences	-38,0	-281,8	-38,0	-281,8	-369,1
Income tax relating to components of other comprehensive income	8,9	-	8,9	-	-
Other comprehensive income	-29,2	-281,8	-29,2	-281,8	-369,1
Total comprehensive income for the period	44,6	-244,3	44,6	-244,3	13,3
Of which minority interests	-0,0	-0,0	-0,0	-0,0	0,2

Balance sheets

(amounts in MNOK)	31.03.2010	31.03.2009	31.12.2009
Assets
Deferred tax asset	325,2	219,1	318,0
Goodwill	2 377,6	2 337,8	2 324,3
Other intangible assets	240,9	215,5	230,9
Property, plant and equipment	116,8	127,1	115,1
Receivables/investments	53,8	69,6	57,1
Non-current assets	3 114,3	2 967,1	3 045,6
Inventories	539,2	468,2	397,5
Accounts receivable	2 329,5	2 346,6	3 211,4
Other receivables	311,0	470,6	305,9
Financial investments	0,2	0,2	0,8
Cash and cash equivalents	226,4	296,8	194,5
Current assets	3 406,2	3 582,6	4 109,9
Total assets	6 520,5	6 549,6	7 155,5
Equity and liabilities
Share capital and premiums	1 537,2	1 557,6	1 571,1
Fund	15,0	83,7	-3,7
Retained earnings	1 343,5	973,4	1 242,1
Equity attributable to shareholders of Atea ASA	2 895,7	2 614,7	2 809,5
Minority interests	3,7	3,7	3,7
Interest-bearing borrowing/liabilities	10,0	12,2	12,4
Other long term liabilities	26,2	38,0	22,9
Deferred tax liability	83,5	78,7	73,7
Retirement benefit obligation	0,9	3,3	0,9
Non-current liabilities	120,6	132,3	109,9
Interest-bearing borrowing/liabilities	563,5	888,9	403,9
Accounts payable	1 604,5	1 442,1	2 162,2
Provisions	101,0	114,5	144,4
Other liabilities	1 231,4	1 353,5	1 521,9
Current liabilities	3 500,4	3 799,0	4 232,3
Total liabilities	3 621,1	3 931,3	4 342,4
Total equity and liabilities	6 520,5	6 549,6	7 155,5

Key figures

	1st quarter		Full year
	2010 Actual	2009 Actual	2009 Actual
Earnings per share (NOK)	0,77	0,39	4,01
Diluted earnings per share, adj. for effect of option progr. (NOK)	0,76	0,39	3,99
Weighted average number of shares	95 527 022	95 527 022	95 527 022
Weighted average number of diluted shares	96 855 164	95 542 111	95 812 842
	Actual
	31.03.2010	31.03.2009	31.12.2009
Number of shares end of period	95 527 022	95 527 022	95 527 022
Net interest-bearing position (MNOK)	-339,4	-602,1	-214,1
Cash reserve (MNOK)	1 186,4	900,1	1 536,5
Working capital ratio	1,7 %	2,7 %	0,5 %
Equity ratio	44,5 %	40,0 %	39,3 %
Number of employees	4 589	4 478	4 380