Itera

Earnings Release • Aug 22, 2014

Strong order intake in the public sector

Strong order intake in the public sector

Revenue, profit and the general activity level are

somewhat lower in the two first quarters of 2014 due

to the geopolitical tension in Ukraine. However, the

market responded positively to the establishment of

the new development center in Bratislava, and the

order intake is solid from the end of the second

quarter, particularly in the public sector.

Operating revenue amounted to NOK 114.8 million

(124.0) in the second quarter and NOK 227.2 million

(237.7) in the first half year, corresponding to a

decrease of -7 respectively -4 percent.

The operating expenses in the second quarter amounted

to NOK 113.6 million (116.1) and NOK 223.6 million

(227.5) in the first half year. This represents a

decrease of -2 percent both in the second quarter and

year to date.

Operating profit before depreciation (EBITDA)

amounted to NOK 6.6 million (13.3) in the second

quarter, corresponding to a margin of 5.7 (10.7)

percent. Operating profit (EBITDA) in the first half

year amounted to NOK 14.4 (20.7), corresponding to a

margin of 6.4 (8.7) percent.

Operating profit (EBIT) amounted to NOK 1.2 million

(8.0) in the second quarter, which corresponds to a

margin of 1.0 (6.4) percent. EBIT in the first half

year amounted to NOK 3.6 million (10.2),

corresponding to a margin of 1.6 (4.3) percent.

The cash flow from operations amounted to NOK 13.0

million (13.5) in the second quarter and NOK 2.2

million (18.4) in the first half year.

The growth of the five largest customers accounted

for 9 percent in the second quarter and 26 percent

year to date compared to the same periods last year,

while the growth for the 10 largest customers

accounted for 3 percent in the second quarter and 11

percent year to date compared to the same periods

last year.

Digitalization of the public sector was defined as a

strategic area in the quarter. The efforts have

already resulted in new contracts with customers like

the City of Oslo, Norway Customs, the Norwegian

Directorate of Health, the Airport Express Train, the

Norwegian Public Service Pension Fund and the

Norwegian Agriculture Agency.

The public sector is facing major tasks. Our

expertise in communication and technology makes us

able to be a suitable partner, and we expect a good

activity level in the sector going forward, says Arne

Mjøs, CEO of Itera.

By the end of the quarter, the number of employees

was 465 compared to 435 in the corresponding quarter

last year. This represents an increase of 7 percent.

The nearshore ratio was 33 (26) percent by the end of

the second 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