Good morning, everyone. Welcome to the interim report for the fourth quarter for Itera.

We have a very standard agenda. I will start with the highlights of the quarter and deep dive into the business review section, and then Bent Hammer, Chief Financial Officer, will take us through the financial review, and we also have some comments about the outlook.

Last but not least, also there is a possibility for post some questions in the chat, we also look into that at the end of this session. This time we only have 40 minutes, we need to be very sharp on the timeframe.

If you would like to have even more time to discuss, we are also available after the meeting for more specific discussions. Let me start with the highlights for the fourth quarter.

As this market in IT is also have been quite soft the last, I will say, two years, but I think we are quite navigating the software market in a quite resilient way. The volatility, of course, persists, not at least also in the business environment, but our new regional structure has strengthened the resilience, and today, in this fourth quarter, we have managed to deliver 54 million in operation cash flow.

That's, of course, extremely important. Also would like to put highlights on our cloud and application services, CAS we call it.

As we have made a lot of investment over several years, and now we really see that's pay off. We had 17% growth in AI and cloud in this quarter, and for the full year, it was 19%.

That's very important in terms of a new growth engine of Itera. Last but not least, we have also talked about the operational improvement program.

Of course, these effects will be quite visible in our economics going forward. We are expecting 1.5 to 2 percentage points margin uplift in the next coming months.

These are the highlights for the quarter. Let me also look at the figures in brief.

We delivered in the fourth quarter 230 million Norwegian kroner compared to the same quarter last year, 212. That's 1% growth.

If you also look at the currency effects, it was actually 2% growth for this quarter. For the full year is actually about -1% for the full year.

That's almost flat if you look at the currency effects. We more or less a flat year in 2025 in a quite soft market.

If you look at the EBIT margin for this quarter, it was 1.8% compared to 3.5% the same quarter last year. For the full year, we delivered 4.3% EBIT margin.

Then if you look at the operational cash flow, we delivered 54 million in this quarter, but for the rolling 12 months, it was 63 million. Also, if you look at the number of employees, it was 695 at the end of this quarter compared to 725 end of 2024.

We're adjusting also the cost base, of course, Itera, and also managed to deliver profitability for this quarter. We also will deep dive even more to explain more what is behind.

That is something Bent Hammer will bring more into clarity later in this presentation. Let me go into the market review and have some comments about that.

As all this kind of geopolitical tensions that you see, you all remember the Davos and Trump, etc., is making a very challenge for a lot of the macroeconomic conditions going forward. That might also have some delay on the investment decision and also reduce the project visibility.

That's something we have seen for a long time, but if you look at our industry, the resilience in digital spending is actually that the digital and IT investment remained quite robust because it is driven by AI, cloud, data, and cybersecurity. It has really become an essential infrastructure of the companies and also, these investment in IT is extremely well established also going forward.

We see, as the big trend about AI is all over the place, our customer increase the budget for AI-driven transformation in workflow, platforms, and decision-making processes. That is what we see.

We also have noted, maybe the last year, I will say, this kind of onshoring, nearshoring, offshoring, whatever you call it, shoring has also been impacted, especially in the Nordics, because of the market softness, some of the customers started to insourcing. That is something we have also seen in the past.

It is some kind of going back and forth, but we also see that the customer, because of the uncertainty in the market, is also focusing even more on cost pressure. That is also something that we see that will also drive renewed interest for these kind of delivery models going forward.

That's a short introduction of the highlights. Let me also deep dive into the business review before we go into the financial part of this presentation.

As Itera is a company based in the Nordics with Nordic roots, but we have also quite strong European presence. We are a team of vibrant of business advisors, designers, and technologists, and we have a very close focus on customer.

As you see, we have 14 offices in Europe, eight countries, and we also been 18 years in Ukraine, and that's quite amazing because four of these 18 years has been in a war situation. What is really happening in Europe now, as you see, because of the tension versus US and also the threat towards Europe in terms of Russia, is actually that all kind of innovation we have learned from Ukraine is also coming a competitive advantage when you look also into Europe.

If you look for Itera's two main offerings, as we are talking about digitalization services. That is one part of the business, but we also established what we call responsible business, where we have our focus program, Enter Ukraine with Itera.

I will go through both these sections and updates you what's really happening. Let me start with the highlights for digitalization services.

I will start to focus on the sector development. As you see, we have, of course, focus on financial services, that's banking and insurance.

That has been some kind of drop, as you see, because we have a flat revenue. If you look at energy, industry, it's more or less flat.

Public and organization, more or less flat. Others, you see there is an uplift of 4-5%, and in this sector, others, we also have defense as part of it.

We see there is also some shift for some of the sectors is really increasing, other sectors is more or less flat, but I think in general, the market is quite well established in terms of the spending, and depending what you're talking about, what kind of services we see. What is important for Itera is, of course, we are delivering a full range of services as business advisors and designers and also technologists.

We both provide with advisors, but we also work very hands-on and deliver real outcomes. In terms of defining the strategy, IT technology, understanding the technology complexity, architecture, looking at the needs and also the customer experience, and not at least also working with the economics and also the cost-effectiveness of the solution.

We have, a full range of services, we manage to look both on the strategy and advice part of Itera, but also how we execute and capture the real outcomes of the solutions we provide. What is important in this situation is actually also our IT landscape is undergoing a fundamental shift.

AI is now a key driver, as you all see, and I know there's a lot of discussion out there about AI importance for the industry. I will comment also on that, but what we see is actually the industry is shifting from a cloud-driven environment to AI transforming every layer of cloud computing and also accelerating their business outcome by using AI and also technology itself.

That's a key driver we see all over the place, and as you all know it, how you use the ChatGPT or whatever, and it's really coming much more going also into our space. What is extremely interesting in this perspective is actually that this cloud and application services at Itera, we call it CAS, has really become a very strategic investments opportunity that we have done for multi-year, but now is really driving the growth.

As I mentioned, 70% revenue growth when we total provided quite flat quarter, but, of course, in this space, we are growing quite significantly according to the market needs, I will say, and 19% 19% for the full year. That is because we are leveraging automation and AI to the actually delivery and increase the customer value.

It's also have a strong customer impact because we can help our customer to leapfrog their digital maturity and also unlock new opportunities where AI is something that is coming all over the place in the business model. For Itera, not at least, that also a very strategic role because this will also increase what we already are quite interesting in all over the place is actually the how we can establish more recurring revenue.

Managed services is an extremely important part of it for Itera as enabler, but not so we not only focus on the cost play, but actually also the value that we provide, and also for Itera, more recurring revenue. Let's have a talk about AI.

We don't see in Itera as a threat. We see it as a big opportunity.

I know there's a lot of discussion in the investment environment that this will be a new hype, whatever. Yes, it's a lot of hype there, but it's also tremendous shift also because what we see is this digital agents that you see on the right side for each developer, it also have a fantastic opportunity to deliver even more coding, even more analysis, even more faster, more value for the customer through the whole life cycle of application.

That is something we have seen happening every time there's a new technology. That's a part how we adapt into these opportunities.

We do see this as a big opportunity and not a threat, and I will come back more to that in a minutes. You also talk about the business model.

Of course, the business model is changing. We talked about managed services.

Somebody are saying we don't want to deliver our hours going forward. Of course, we will do that.

We have been talking about value-driven business model for a long time. Of course, it will be a part of the mix of services we provide, but it won't go from 2 to 100% in this direction.

It will always be a mix, and that is something we are always see. We adapting to the new business model coming in because also, if you look at the other part, is actually that they also, the customer, also will have control of the business model itself.

Sometimes the time-based model is very good, and other places is some other opportunities will be more like a managed services or software as a service or some kind of other kind of business model. We already see a trend on this in our portfolio project that we are also adapting into this new business model.

What is important is actually the winners are the companies that train the people in AI and also embed these AI capabilities into business offerings. It's not only about technologies, it's also about changing the processes, changing the business model, changing everything part of it.

If you don't change, you will be a loser, of course. That is, of course.

In this meeting, we can transcribe everything from this meeting, and you can go back and you can really look at what I'm saying today instead of sitting 40 minutes and try to identify what I was saying. That's a technology we already use, and if you're not using, you are out of the market.

This is just an example to see how we actually develop, how the society develop, and also this is also important in terms of looking into the AI opportunity. I just also make one focus on, because this is also what you talked about, let's say that you don't need the juniors.

That is just to look at two example on this. If you look at on the vertical axis, you have task complexity, on the horizontal, you have the experience of worker.

Of course, the senior guys can do even more complex technology, complex task, I will call it, because they don't need to have the all the juniors to make the presentation, do this analysis, whatever, but that is something the agents can do for you. From a senior perspective, this is also big opportunities, they can do even more with this digital agents I talked about.

If you look at the other way around, the junior opportunity is also extremely high because they can also gain experience from what the senior guys has been. If you are 50 years old, this junior can really acquire the same experience in much shorter timeframe.

The junior is also a big opportunity because they will also adapt into this new environment. Both for the senior opportunity is also is a big opportunity, and for the junior is also big opportunity as long as you adapt into this new environment and see how you can actually use this agents and how you can actually expand your experience in quite fast time.

Everyone, both the senior and junior, need to adapt into this one, and that is something we already see that it's changing the allocation of the people skill set going forward. Going back to what I'm saying, this is a big opportunity.

We see the senior is increasing capabilities in Itera, and we also see that the junior is really increasing the competence quite fast because they are quite fast in adapting into this new environment. Let me go into the other topic I talked about in the beginning before I finish up for my business review.

I just want to say that we have a lot of customer that and also people ask in Itera what's really happening. As you see, is extremely aggressive Russia that is trying to destroy the country and also demotivate the citizen by themself by attacking every day, more or less.

Two offices in Lviv and Kyiv, I'm so proud of how they are adapting to any kind of situation. They are super motivated to stay together to deliver the services as we have done in the past since the invasion.

We have Starlink installed at homes or power generator, whatever what is needed. We reallocated, all our people in Ukraine are reallocated.

If you are living on the left bank of the Dnipro River, of course, that is more hit by, and the electricity, is hit more there than on the other part, they also rotate and make sure that also they can go to our office and where we have fully operational, and they can also bring the family. These people in Ukraine is really adapting to any kind of situation, and they are super motivated to provide the services as it was before the invasion.

What I will also say that these people in Ukraine, I think in terms of the skill set, in terms of adapting into using AI, using data, whatever, to understand what's really happening and the speed they have, I don't see that in any kind of country around the world. This is also they are extremely skilled in digitalization, and I think they are one of the best in the world in order to understand what is really happening, what about protecting the critical infrastructure.

They have a lot of innovation power in this country, and that's why I think it's so extremely interesting to have our brave Ukrainian people as part of Itera. Also, what is quite interesting also, we talked about Enter Ukraine, in this quarter, the fourth fourth quarter, we managed also to provide 40 MW of power generation capacity for Bergen Engines.

We are facilitating and driving this, working day and night, seven days a week to make sure that totally we have provided 200 MW from Bergen Engines. Let's say it's about 1.5 million people, more or less, that have getting electricity because of these kind of deliverables.

That's also a part of what we have innovated into Ukraine to see how we can develop new businesses going in this through this Enter Ukraine program. Also, what we also are looking at and also taking a larger position into, we won't talk about every kind of cases as we talked last time, but we are also taking position in defense.

These are two example: Riftdynamics, which is a local player, both are two local players, I will say, in the Nordics, or have a global perspective, one in the drone space and the other one is in the drone field, but the other one is also T-Kartor, which is also providing geospatial data management software that can also be used in the airspace. These are very interesting technology that are both used for protecting infrastructure, but also looking into opportunity to protect against the Russian aggression both in Ukraine, but also around in Europe.

These are also something that happening because we didn't have any position in defense before the invasion, but now we are really moving into this sector with very high pace. Let me finish up before I leave the floor to Bent.

The order intake, as I said last quarter, we are focused on the share of new customer. In this quarter, it was 12%.

I think that's quite interesting number. That's new revenue from customer won over the past 12 months.

If I look to other place, they're talking about 4-5% in this space in compared to our figures, 12%. That's quite important because that's also provide a bigger customer base for also taking growth position going forward when also the market is actually more normalized.

These are, as you see on this slide, you see some of the logos that we have closed this quarter. Also, if you look at the remaining, that is 88% is from the revenue which is coming from existing clients.

That's also important to have a very strong base of existing clients. Also the visibility, as you see, the top 30 customer, it is 73% is down from 79%.

Of course, that's also I think is more sustainable because we have also increasing the number of new clients. That's a consequence of that also.

I think that's also important to say that we also have quite sustainable customer base consisting of existing long-term clients, also new ones coming into the company. The last slide before I hand over, I think I'm just on time.

We have 695 people at the end of this quarter compared to 725. As you see, the nearshore ratio, the share that is in Central and Eastern Europe, is 49%, more or less what we are talked about, half of the capacity in Central and Eastern Europe.

As you see on the graph on the bottom, you see that the number of FTEs in Itera has been adjusted. If you're going back to 2022, 2023, we have this organic growth, but I really believe that when the market is more normalized, we are really ready to speed up again in terms of growing organically in this case from 14 14 location that have both local customer and what we call shared customer from other location.

I think also we have much stronger foundation to actually really grow faster and also sustainable when the market is more normalized for IT services. I think I stop there and hand over to you, Bent Hammer, please.

Thanks, Arne. Good morning, everybody.

Yes, we delivered some positive revenue growth in the quarter despite having a reduced capacity somewhat, and that's that's because of a of a very solid growth in our cloud and application services, which grew 17% in the quarter and and also 19% for the year as a whole. We saw also saw operationally that utilization improved, though somewhat mixed, it was it was less favorable in terms of margins as as the Nordics grew well, but but we had some some softer utilization in the Central and Eastern Europe part of the business.

We also saw continued rate pressure in the market, which has been, suppressed for for the last couple of years, as as Arne mentioned as well. In the quarter, we also invested a couple of million NOK in in developing the sales pipeline and and strengthening our newly established regional office in in Rogaland in in Norway, and this will bear fruits in into 2026 as we see a very positive development there and and and there's a prospects of of landing some some good contracts there in in the short term.

We also saw some costs included in Q4 related to the the business improvement program that we're running, and we expect that to to deliver 1.5 to 2% margin improvement, as Arne also mentioned, during 2026, actually starting already in Q1 and and and I think more or less full effect in Q2. All in all, that left us with 213.4 million NOK in in revenues and an EBIT margin of 1.8%.

I will show you now the developments that we've seen in in the last couple of years. From the the top right-hand graph, you can see that we've largely been able to maintain the the top line, which which is good in in the market we've been in, but we've seen that the the the EBIT margin has has dropped quite a bit.

We do, however, see that we have multiple paths of of both returning to growth, but but also expanding the the margin again. Although utilization improved quite a bit overall, we still have a bit to go to to reach our target level there, so that that will be very, well, that will impact the profitability quite a bit when we get that normalized again.

We see that the customers are are are looking at some outsourcing opportunities that we are we are well positioned to to take. We see the the steady increase in the in the revenue from cloud migration and modernization, which is driven by AI and and security concerns.

We also see that the the expansion in Sweden and and the Rogaland region is is gaining traction as well as as in in some of our incumbent markets. Last but not least, we have a a very strong portfolio now of of these Enter Ukraine with Itera types of of business advisory services and with associated success fees, which could be a a a strong driver of of profitability, not at least.

Looking at at the breakdown on revenue type, we see the the revenue per employee is up by by 2% in in this quarter, driven by by better utilization and also some more recurring services. Revenue from our own consultants was also up by 2% to 177 million, whereas subscription services was, well, more or less the same at at 20 million.

Third party decreased by 32%, small figures, 6 million NOK in the quarter, and 19% increase to 11 million for other revenue. Cash flow, probably one of the more interesting things in in our current report, however, should come as no surprise that Q4 is is a is a quarter where we generate a lot of cash from operations.

As you can see from from the history here, the the Q4 is is always the the best quarter in that sense. We delivered 54.4 million in in Q4 and 63 million for the full year as a whole.

Investing activities slightly higher in in this this quarter last quarter as we invested in some some both AI-related IP as well as as as yeah, as as in a in a community-based portfolio of portal for for donations in in Ukraine. Financing activities is mostly driven by our dividend payouts as well as some some leasing obligations.

Going back to to cash, we see that we we have a history of a very strong conversion of our EBITDA to to cash. This quarter, or the the the last 12 months, these are the running last 12 months graph, we delivered 98 91.8% for for the past 12 months, and that would actually been above 100% if it weren't for some some customer receivables in Iceland that were were late and which we expect to collect in this quarter.

A very strong conversion, and that gives us the opportunity to to pay back to to to our shareholders. Again, in the in the quarter we just completed, we we paid out a supplementary dividend of NOK .10 per share, as we've been accustomed to to do.

For the for the year as a whole, we delivered .3 NOK per share. The the board yesterday suggested we that they will propose to the Annual General Meeting in May to to distribute an ordinary dividend of .20 NOK per share and also ask for an authorization to pay a supplementary dividend later in the year.

The share price has been quite suppressed in the last couple of years. It ended at 8.58 NOK per share, which is more or less unchanged from from the year before if you include the dividend payments that we've distributed during 2025.

We hold about 472,000 in own shares valued up at at 4.1 million NOK at year-end, and the board yesterday also authorized for us to to have a share repurchase program in the next few weeks or so. We will we will load up on some more shares and also have an employee share purchase program in in March.

Right, looking ahead, as as we and and and our peers have reported, the the market has been soft in the last two, three years. We see signs of of improvement there now, so we hope that will gain traction during 2026.

We, at least after our changes internally, see us in more customer activity, more meetings, more interest from from customers, especially, related to to the AI area, of course, I should say. Having been in a in a sort of a slow market locally and then focusing on on trying to to to get get our our onshore people out on assignments, I think we have neglected a bit the the distributed delivery, and that's something that we have now refocused on.

We expect to also to have more traction on on the on the deliveries from from Central and Eastern European parts of our organization. As mentioned, we we have largely implemented already the the measures to to to reduce cost and and improve utilization of our of our people by by consolidating some roles and and making more people available for for billable work, and we expect that to to then yield 1.5 to 2% margin improvement in in isolation.

I mentioned the the Enter Ukraine with Itera program. This continues to to expand, and and we have now a a large and and very exciting portfolio of of our companies and and opportunities in that space, and that could create some some really high-value revenue streams for for us in the next couple of years.

Focus is still on on on on on getting back to to growth, but but doing so in a profitable way and in a more profitable way than than we have shown in the last few quarters. Again, we we strive to to generate as much as possible of cash out of this operations.

That's that's it. I don't know if there are any questions posted online.

We have a few minutes left.

It seems that we have answered everyone's questions already, but for all viewers out there, if anything comes to mind, I know that both of you are happy to hear from them, and contact details are available on our website.

Yeah.

That's good. I see we are straight on time, when are we going to...

We will report Q1 on May 9th 8th, and our annual report will come out on April 28th.

Yeah. I think we close with that and say, okay, happy to see you.

If you have any kind of questions, we're ready to meet you as soon as possible. Bye-bye.

Thank you. Thanks.