Itera

Earnings Release • Oct 29, 2014

Stabilized situation and sequential growth

Stabilized situation and sequential growth

Oslo, 29th October 2014: The Group now experiences a

more stable situation than in the first half, which

was negatively affected by the situation in Ukraine.

Reduced revenue in the first half has now turned to a

sequential growth in the third quarter and a revenue

at the same level as last year.

Operating revenue amounted to NOK 102.3 million

(102.5) in the third quarter and NOK 329.5 million

(340.1) year to date. The revenue in the third

quarter ended on the same level as last year, but had

a decrease of -3 percent year to date.

The operating expenses in the third quarter amounted

to NOK 99.8 million (97.8) and NOK 323.4 million

(325.2) year to date. This represents an increase of

2 percent in the third quarter. The increase is

related to the establishment of the new development

center in Bratislava. The total operating expenses

decreased by -1 percent compared to last year.

Operating profit before depreciation (EBITDA)

amounted to NOK 7.7 million (10.0) in the third

quarter, corresponding to a margin of 7.6 (9.7)

percent. Operating profit (EBIT) amounted to NOK 2.5

million (4.7) in the third quarter, which corresponds

to a margin of 2.4 (4.6). EBIT year to date amounted

to NOK 6.1 million (14.9), corresponding to a margin

of 1.8 (4.4) percent.

The cash flow from operations amounted to NOK -3.2

million (4.0) in the third quarter and NOK -1.0

million (21.9) year to date.

The 10 largest customers accounted for 42 percent of

the total revenues in the third quarter, up from 39

percent in the corresponding period last year. The

growth of the five largest customers was 10 percent

year to date, while the growth of the 10 largest

customers was 4 percent year to date compared to the

same period last year.

The public sector is a particular priority for the

Group. During the quarter, Itera signed new or

expanded agreements with customers like the Norwegian

Environment Agency, the City of Oslo, the National

Police Immigration Service, Statsbygg, the Norwegian

Agriculture Agency, the Language Council of Norway

and the Norwegian Defence Estates Agency (NDEA).

- The public sector is undergoing a major

transformation. The ambition is that public

administration in general will communicate digitally

with citizens. The sector will be in need for

competence within technical development, service

design and communications for many years to come, and

Itera is well positioned through our range of

services, says Arne Mjøs, CEO of Itera.

By the end of the quarter, the number of employees

was 465 compared to 453 in the third quarter last

year. This represents an increase of 3 percent.

The nearshore ratio was 33 (29) percent by the end of

the third quarter.

Arne Mjøs, CEO

+47 905 23 172

arne.mjos@itera.no

Torunn Havre, CFO

+ 47 909 43 403

torunn.havre@itera.no

Ane Gjennestad, CCO

+47 90 55 60 77

ane.gjennestad@itera.no