September 2016

Group Finance Manager, Chris Sørum

Highlights – Q2 2016

• Revenue of NOK 8,442 million, up 23.4%

• EBITDA* of NOK 215 million, up 36.9%

• Higher sales across all three lines of

business

• Improved EBITDA* across all countries

* Before share-based compensation, expenses related to acquisitions, and restructuring costs

This is Atea

The market leader within IT infrastructure solutions and system integration in the Nordic and Baltic countries

Key statistics

• NOK 28 billion revenue in 2015 (approx. EUR 3 billion)

• Largest IT infrastructure player by far in Nordic region, with 17% market share

• 25,000 customers, with 50% of revenue to public sector

• 6,800 employees across 89 locations in Nordic and Baltic regions

• 4,000 IT consultants and technicians, with more than 6,500 certifications

Our business – IT infrastructure solutions

Infrastructure

volume

products

Infrastructure

high-end

products

Infrastructure

solutions/

middleware

Applications

Business

processes

Analyse Installation Outsourcing

CUSTOMER

VALUE

Operate Design Service

& support

CUSTOMER

LIFE CYCLE

Integrated IT solutions for organizations, with extensive service offering

Target market has grown at a steady pace in Nordic region

NOK billion

0

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010 2011 2012 2013 2014 2015

Hardware Software Services

Nordic market – stable and growing

CAGR = 2.5%

Source: IDC, December 2015, adjusted for constant currency exchange rates

0

200

400

600

800

1 000

0

4 000

8 000

12 000

16 000

20 000

24 000

28 000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Revenue EBITDA before SBC

Revenue (MNOK) EBITDA (MNOK)

Atea financial performance

Revenue CAGR 8.5%*

EBITDA CAGR 17.7%**

* Estimated organic growth rate of 4.5% + acquisitions ** EBITDA adjusted for share-based compensation, expenses related to acquisitions, and restructuring costs

Strong competitive advantages in the Nordic and Baltic IT infrastructure markets through scale, breadth of competence, and presence in local markets

Atea’s competitive advantages

• Largest reseller in Nordic and Baltic region

• Strategic partner with major IT companies

• Scale drives purchasing power with suppliers

Market leadership

• 89 offices across all regions

• Ensures access to IT purchasers and rapid customer support

• Very strong in public sector, with long frame agreements

Local presence

System integration

• Shared service functions support regional sales and IT delivery organizations

• Shared investment and lower costs, through economies of scale

Shared services

• Integration expert with key vendors and technologies

• IT trends strengthen Atea’s role as a system integrator

Market leadership

Largest partner in Nordic region, and within the top 3 in Europe, for major global IT companies

• Global IT companies rely on Atea to access the Nordic and Baltic customer base

• Scale and negotiation power drive strong pricing advantages

• Strategic partnership with preferred vendors on key products and marketing initiatives

• Product coverage extends across all categories of IT infrastructure

Major trends in IT strengthen demand for Atea as system integrator

System integration expertise

Key trends

Mobility Growth of smartphones/ tablets for workplace

Consumerization Freedom to choose your own device

ITaaS / Cloud New delivery models for products and services

Collaboration Unified communication, video and sharing tools

Big Data solutions Business intelligence, all things connected

Growing complexity of IT infrastructure

• More devices with shorter lifecycles

• Exponential growth in data and processing

• New types of devices and operating systems

• Remote access to data and applications

• More complex collaboration networks

• Greater demands on communication

• More security threats

• Independent advisor with extensive product coverage

• Integration expert across many vendors and technologies

• Supports customers in implementing most appropriate IT solutions, and optimising their performance

Local market presence

89 offices in Nordic and Baltic countries, covering every major regional market

• Atea is always the «local vendor», with 25,000 customers across all regions

• Only systems integrator which can offer regionwide service agreements with short customer response times

• Office network ensures that Atea is in contact with key IT purchasing decision makers and is invited to participate in all major tenders

• Very strong coverage within public sector, representing 50% of Atea’s revenue

Atea holds key public frame agreements – multi-year contracts with high renewal rates

Shared service functions create economies of scale when delivering IT to local markets

Shared services

Denmark

eSHOP

Logistics center

Nearshoring center

Leasing broker

International Customer Center

Norway Sweden Finland Baltics

Country organizations

• Local sales account management

• Local IT service deliveries

Shared services

• Efficient online portal for customer purchases (73% of transactions)

• Internal warehousing and distribution center (27 % of volumes)

• Low cost back office functions in Latvia

• Develops financing alternatives for customers with local banking partners

• Provides global delivery capabilities

Key strategic initiatives across Atea group

Strategic opportunities

SME

ITaaS / Cloud

Collaboration

Big Data

Service Platform

Nearshoring

• Increase SME market share from 7%

• Represents 40% of Nordic market

• Expand “IT as a Service” offering

• Cloud solutions for customers, with integration of local data center and public cloud services

• Major opportunities in videoconferencing, mobility and unified communication solutions

• Tools for data management and analytics

• “Internet of Things” to drive huge growth in data

• Common service offering to promote cross-selling

• Improve efficiency of service delivery

• Utilize Riga office for backoffice support functions

• Reduce organization costs

Sales initiatives

• Quickly adapt to the latest developments in IT and offer to the Nordic and Baltic regions

• Work in close partnership with the largest and most innovative IT companies

Operating initiatives

• Continuously focus on cross-selling, cost and efficiency

Record high Free Cash Flow* of MNOK 868 in 2015 (NOK 8.25 per share) Free Cash Flow has averaged 131% of Net profit after tax since 2010

Free cash flow*

439

824

452 433

625

868

0

100

200

300

400

500

600

700

800

900

2010 2011 2012 2013 2014 2015

8.25 6.00 4.20 4.46 8.25 4.56 FCF / Share

* Free Cash Flow defined as Cash Flow from Operations, minus capex. Capital expenditures include assets acquired through financial leases.

Covenant

Leverage covenant: Net Debt / EBITDA < 2.5.

Seasonal fluctuations in debt level, with low point at the end of the year driven by strong cash generation in Q4.

0,9

1,6 1,7

0,8

1,4

1,8

0

0,5

1

1,5

2

Q115 Q215 Q315 Q415 Q116 Q216

Net debt / EBITDA

• Bank loan facilities – MDKK 500, 5Y credit facility (2013-2018), 5Y CIBOR + 140bp – MNOK 1 421, short-term facility with MNOK 1 250 AR as collateral, NIBOR + 100bp – MNOK 400, short-term cash credit, NIBOR + 110bp – MNOK 345, short-term money market line, NIBOR + 110bp

• Bond security – MNOK 300, 5Y bond (2013-2018), 3M NIBOR + 210bp

• Leasing – MNOK 700 total facility

Considerations – Starting to prepare for l-t facilities that expire in June 2018 – Value of more funding sources – Value of having both listed stock and bond

• Increased information flow / visibility / transparency, to best valuation of Atea

Debt facilities

• The Board of Directors of Atea has communicated a dividend policy to distribute over 70% of Atea’s free cash flow (cash flow from operations after capex, including assets acquired through financial leases) as a dividend to shareholders.

• At the same time, Atea has maintained a stable investment grade (BBB-) shadow rating in the market since coverage was initiated with the Group’s first bond issuance in 2013.

• The Board of Directors are committed to maintaining the IG rating and has set clear financial guidelines aligned with the financial covenant of Net debt / EBITDA < 2.5 and additionally a solvency ratio > 20%.

• The value of an investment grade rating is perceived as one of the most important strategic financial parameters for the Group.

Dividend and Credit Rating

Appendix:

Financial summary

Income Statement

Currency: MNOK 2016 2015 Growth% 2015 2014 Growth%

Revenue 15 688,7 13 340,3 17,6 % 27 903,5 24 588,4 13,5 %

Total products and services margin (%) 22,1 % 23,1 % -0,9 % 22,9 % 23,3 % -0,3 %

Personnel costs 2 559,4 2 285,1 12,0 % 4 567,8 3 964,7 15,2 %

Other operating expenses 484,7 431,8 12,3 % 884,1 793,8 11,4 %

EBITDA (adjusted) 424,7 359,4 18,2 % 950,7 958,3 -0,8 %

EBITDA (adjusted) margin (%) 2,7 % 2,7 % 0,0 % 3,4 % 3,9 % -0,5 %

Share based / acquisition / restructuring costs 27,6 10,4 166,4 % 26,9 29,0 -7,1 %

EBITDA 397,1 349,0 13,8 % 923,7 929,4 -0,6 %

Depreciation 208,3 192,6 8,2 % 409,4 345,6 18,5 %

Operating profit (EBIT) 188,8 156,5 20,7 % 514,4 583,8 -11,9 %

EBIT (%) 1,2 % 1,2 % 0,0 % 1,8 % 2,4 % -0,5 %

Net financial items -34,6 -46,1 -25,0 % -82,1 -73,2 12,1 %

Tax on continued operations 25,5 17,5 45,4 % 39,3 81,6 -51,8 %

Profit/(loss) for the period 128,8 92,9 38,7 % 393,0 429,0 -8,4 %

H1 actual Full Year actual

Revenue Split

Currency: MNOK 2016 2015 Growth% 2015 2014 Growth%

Total hardware revenue 8 217,6 7 263,0 13,1 % 16 177,1 14 211,6 13,8 %

Total software revenue 4 464,3 3 367,6 32,6 % 6 074,2 5 364,2 13,2 %

Products revenue 12 682,0 10 630,6 19,3 % 22 251,2 19 575,9 13,7 %

Total services revenue 3 006,5 2 709,4 11,0 % 5 651,9 5 011,9 12,8 %

Revenue 15 688,7 13 340,3 17,6 % 27 903,5 24 588,4 13,5 %

Hardware margin (%) 13,5 % 13,3 % 0,2 % 13,1 % 13,0 % 0,1 %

Software margin (%) 7,8 % 9,7 % -1,9 % 10,2 % 10,9 % -0,7 %

Product margin (%) 11,5 % 12,2 % -0,7 % 12,3 % 12,4 % -0,1 %

Total services margin (%) 66,9 % 65,8 % 1,1 % 64,8 % 65,5 % -0,7 %

Total products and services margin (%) 22,1 % 23,1 % -0,9 % 22,9 % 23,3 % -0,3 %

H1 actual Full Year actual

Segment Revenue & EBITDA

Actual Actual Actual Organic Actual Actual Actual Organic

2015 2014 Growth% Growth% 2015 2014 Growth% Growth%

Norway 7 268,4 6 806,5 6,8 % 2,5 % 193,0 275,5 -30,0 % -32,1 %

Sweden 10 779,1 9 681,0 11,3 % 11,7 % 355,1 284,1 25,0 % 25,8 %

Denmark 6 398,6 5 803,2 10,3 % 0,2 % 304,6 326,5 -6,7 % -18,7 %

Finland 207,1 204,3 1,4 % 0,4 % 2,3 3,1 -27,2 % -25,6 %

Baltics 105,3 94,7 11,2 % 5,2 % 5,8 4,3 34,0 % 3,2 %

Other -133,2 -113,4 -18,8 -6,2

Atea Group 27 903,5 24 588,4 13,5 % 9,2 % 950,7 958,3 -0,8 % -7,5 %

Currency:

Local in million

Full Year Revenue Full Year EBITDA (adjusted)

Actual Actual Actual Organic Actual Actual Actual Organic

2016 2015 Growth% Growth% 2016 2015 Growth% Growth%

Norway 3 612,5 3 335,5 8,3 % 8,3 % 94,7 79,8 18,8 % 18,8 %

Sweden 6 253,0 5 508,1 13,5 % 13,3 % 177,7 145,4 22,2 % 21,8 %

Denmark 3 312,4 3 064,8 8,1 % 8,1 % 103,0 109,1 -5,6 % -5,6 %

Finland 126,1 117,1 7,7 % 7,7 % 1,8 1,0 76,7 % 76,7 %

Baltics 46,3 47,7 -2,9 % -6,8 % 2,7 2,2 22,9 % -2,4 %

Other -130,1 -117,5 -27,5 -14,4

Atea Group 15 688,7 13 340,3 17,6 % 17,4 % 424,7 359,4 18,2 % 16,4 %

Currency:

Local in million

H1 Revenue H1 EBITDA (adjusted)

Segment share of total

Currency: MNOK Actual Actual Share of total Share of total Actual Actual Share of total Share of total

2015 2014 2015 2014 2015 2014 2015 2014

Norway 7 268,4 6 806,5 26,0 % 27,7 % 193,0 275,5 20,3 % 28,7 %

Sweden 10 303,8 8 893,0 36,9 % 36,2 % 339,4 261,0 35,7 % 27,2 %

Denmark 7 670,7 6 503,6 27,5 % 26,4 % 365,1 366,0 38,4 % 38,2 %

Finland 1 852,1 1 707,2 6,6 % 6,9 % 20,3 26,1 2,1 % 2,7 %

Baltics 941,7 791,6 3,4 % 3,2 % 51,6 36,0 5,4 % 3,8 %

Other -133,2 -113,4 -0,5 % -0,5 % -18,8 -6,2 -2,0 % -0,6 %

Atea Group 27 903,5 24 588,4 100,0 % 100,0 % 950,7 958,3 100,0 % 100,0 %

Full Year Revenue Full Year EBITDA (adjusted)

Currency: MNOK Actual Actual Share of total Share of total Actual Actual Share of total Share of total

2016 2015 2016 2015 2016 2015 2016 2015

Norway 3 612,5 3 335,5 23,0 % 25,0 % 94,7 79,8 22,3 % 22,2 %

Sweden 6 334,9 5 096,7 40,4 % 38,2 % 180,0 134,6 42,4 % 37,4 %

Denmark 4 189,5 3 552,7 26,7 % 26,6 % 130,2 126,5 30,7 % 35,2 %

Finland 1 188,4 1 011,7 7,6 % 7,6 % 16,9 8,8 4,0 % 2,4 %

Baltics 436,4 412,2 2,8 % 3,1 % 25,9 19,3 6,1 % 5,4 %

Other -72,8 -68,5 -0,5 % -0,5 % -23,0 -9,5 -5,4 % -2,6 %

Atea Group 15 688,7 13 340,3 100,0 % 100,0 % 424,7 359,4 100,0 % 100,0 %

H1 Revenue H1 EBITDA (adjusted)

Balance Sheet

ASSETS

Property, plant and equipment 691 671 742 613

Deferred tax assets 552 545 553 546

Goodwill 3 713 3 575 3 815 3 588

Other intangible assets 334 350 357 369

Other non-current receivables 12 12 12 9

Non-current assets 5 302 5 153 5 479 5 125

Inventories 761 772 762 632

Trade receivables 5 229 4 400 5 988 5 496

Other current receivables 915 907 872 787

Cash and cash equivalents 115 292 630 583

Current assets 7 019 6 372 8 252 7 498

Total assets 12 321 11 525 13 731 12 624

EQUITY AND LIABILITIES

Equity 3 185 2 908 3 480 3 549

Interest-bearing long-term liabilities 1 125 1 122 1 182 1 121

Other non-current liabilities 22 5 5 4

Deferred tax liabilities 245 247 274 246

Non-current liabilities 1 391 1 374 1 461 1 371

Trade payables 4 394 3 853 5 707 4 681

Interest-bearing current liabilities 775 678 197 291

Other current liabilities 2 577 2 712 2 885 2 731

Current liabilities 7 746 7 243 8 790 7 704

Total liabilities 9 136 8 617 10 252 9 074

Total equity and liabilities 12 321 11 525 13 731 12 624

Currency: MNOK 31. des 2015 31. des 201430. jun 2016 30. jun 2015

Cash Flow

2016 2015 2015 2014

Profit before taxes 155 110 432 511

Taxes paid -88 -38 -56 -39

Depreciation & amortisation 207 193 409 346

Share based compensation 17 7 20 20

Other corrections -0 - 6 -6

Cash earnings 292 272 812 831

Change account receivables 537 1,009 -107 -330

Change inventory -34 -143 -74 -130

Change trade payables -1,100 -752 662 529

Other changes in working capital -208 -423 -6 58

Cash flow from operations -512 -38 1,287 959

Capital expenditures -142 -135 -291 -196

Purch./sale of subs./assoc./investm. -16 -68 -68 -457

Cash flow from investments -158 -203 -359 -652

Payment of dividends -340 -339 -679 -622

Other equity transactions 14 3 5 48

Change in debt 529 312 -276 28

Cash flow from financing 203 -24 -950 -546

Net cash flow -467 -265 -23 -240

Cash start of period 630 583 583 746

Currency effects on cash -48 -26 69 76

Cash end of period 115 292 630 583

H1 FYNOK in million

Shareholding, June 30 2016

Top 20 Shareholders Geographic Split

SYSTEMINTEGRATION APS 25993510

STATE STREET BANK & TRUST CO. 8932041

FOLKETRYGDFONDET 8896812

STATE STREET BANK AND TRUST CO. 4553215

RBC INVESTOR SERVICES TRUST 4471225

JP MORGAN CHASE BANK, NA 4210217

SKANDINAVISKA ENSKILDA BANKEN AB 3436985

ODIN NORGE 2667975

VPF NORDEA KAPITAL 2466118

STATE STREET BANK AND TRUST CO. 1945473

JPMORGAN CHASE BANK NA, LONDON 1662321

THE BANK OF NEW YORK MELLON 1542321

VPF NORDEA AVKASTNING 1493077

J.P. MORGAN CHASE BANK N.A. LONDON 1389264

DANSKE INVEST NORSKE INSTIT. II. 1097574

BNP PARIBAS SEC. SERVICES S.C.A 1013930

J.P. MORGAN CHASE BANK N.A. LONDON 1010716

NORDEA BANK DANMARK A/S 1000999

STATE STREET BANK AND TRUST CO. 945517

KLP AKSJENORGE INDEKS 798677

Region/Country Shareholding %

Nordics 65 189 667 62,0 %

US 21 365 976 20,3 %

UK 13 405 169 12,7 %

Continental Europe 5 155 447 4,9 %

Other 54 452 0,1 %

Total 105 170 711 100,0 %

Nordics US UK Continental Europe Other