Key Figures 3
We are Atea 4
Letter from the CEO 7
Board of Directors Report 2021 11
Members of the Board 21
Shareholder Information 23
Financial statements and Notes
Atea Group Financial Statements 27
Atea Group Financial Notes 31
Atea ASA Financial Statements 78
Atea ASA Financial Notes 82
Auditors' Report 92
Corporate Governance 94
Content
ATEA’S OFFICE LOCATIONS
National office Regional office
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Key Figures Group 2017–2021
NOK in million (unless stated otherwise)
Revenue
Gross profit
Net financial position
Cash flow from operations
Liquidity reserve
Number of full-time employees at the year end
0
10,000
20,000
30,000
40,000
50,000
2120191817
Revenue, Konsern Revenue per country
0
200
400
600
800
1,000
1,200
2120191817
EBIT, Konsern
Key figures, nøkkeltall
2021
Sett inn komma
manuelt som
tusenskille!
2021
Revenue per country
2021
0
10,000
20,000
30,000
40,000
50,000
2120191817
Revenue, Konsern Revenue per country
0
200
400
600
800
1,000
1,200
2120191817
EBIT, Konsern
Key figures, nøkkeltall
2021
Sett inn komma
manuelt som
tusenskille!
2021
Revenue
32,438
34,708
36,655
39,503
41,316
Norway:
Sweden:
Denmark:
Finland:
The Baltics:
0
10,000
20,000
30,000
40,000
50,000
2120191817
Revenue, Konsern Revenue per country
0
200
400
600
800
1,000
1,200
2120191817
EBIT, Konsern
Key figures, nøkkeltall
2021
Sett inn komma
manuelt som
tusenskille!
2021
EBIT
799
690
747
854
1,046
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Key Figures | Atea in brief | Letter from the CEO | Contact us
Strength in our markets
With over 7,500 employees located in 85
cities in seven European countries — Norway,
Sweden, Finland, Denmark, Lithuania, Latvia
and Estonia — Atea has a powerful local
presence across all of the markets we serve.
Given our unmatched size and reach, Atea can
provide the broadest range of IT infrastruc-
ture support and advice to our customers.
This means that we are not only able to
provide the latest technologies, but that we
also have the internal competence to design,
implement, support and operate highly
complex and integrated IT solutions.
Making a difference with technology
Equally important, we are among the Top 3
channel partners in Europe for many of
the world’s leading technology companies,
including: Microsoft, Apple, Cisco, HP Inc,
Hewlett Packard Enterprise, IBM, Lenovo,
VMware, Citrix and Dell Technologies.
Atea has the highest level of vendor certifica-
tion across its key technology partners and
is frequently recognized with awards for its
performance.
Based on Atea’s unique mix of competence
and technology partnerships, our customers
count on us for professional insight on how
to do more with IT. To that end, Atea is at
the forefront of the latest technologies for
mobility, collaboration and big data, as well
as IT-as-a-service and cloud computing.
As a result, we help customers solve problems
and get maximum productivity from their IT
investments.
Built for growth and sustainability
As a publicly traded company listed on the
Oslo Stock Exchange, Atea takes pride in its
long-term record of delivering above-market
revenue growth and in providing a healthy,
consistent dividend payout to investors. For
2021, Atea reported revenue of NOK 41.3
billion: up 4.6 percent compared to last year,
and the highest in our company’s history.
Corporate responsibility and good steward-
ship of our planet are also at the core of what
we do. Atea has won numerous awards and
recognitions for its work in corporate sustain
-
ability during 2021:
•
Atea was awarded the highest rating in
environmental and social performance by
EcoVadis in 2021. This achievement ranks
Atea in the top 1 % of 85,000 organizations
evaluated globally;
•
Atea was ranked as the world’s most
sustainable company in the IT Services
Division, by Corporate Knights (
Global
100 Index 2022
);
•
The Financial Times and data powerhouse
Statista
ranked Atea among a select group
of European companies that have made the
greatest progress in curbing their green-
house gas emissions;
•
Atea received an A-rating for ESG Report-
ing at the Oslo Stock Exchange (Govern-
ance Group).
In 2020, Atea launched Vision 2030: a 10-year
plan for building a better, more sustainable
future with IT. The Vision 2030 is further
described in the 2021 sustainability report,
which is published on Atea’s corporate
website.
Atea is the market leader in IT infrastructure and related services
for businesses and public sector organizations in the Nordic and Baltic regions.
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Key Figures | Atea in brief | Letter from the CEO | Contact us
Dear shareholders,
2021 was a year of solid achievement for the Atea Group,
both in our financial performance and in our organizational
development. Atea’s revenue and operating profit in 2021
reached new heights. Revenue grew organically by 7.5 percent
in constant currency to NOK 41.3 billion, despite supply
constraints in the global electronics industry which limited
hardware deliveries to customers. Due to these supply chain
constraints, Atea finished the year with a record high order
backlog of over NOK 4 billion for delivery in 2022.
Operating profit grew by 23 percent to NOK 1,046 million.
Atea’s business in Denmark continued to make progress with
its turnaround, following a reorganization and change of
management in 2020. Atea’s businesses in Norway, Sweden
and the Baltics also delivered strong growth in profits.
Atea’s sales have increased continuously over many years
due to its unique competitive advantages in the Nordic IT
infrastructure market. Atea is by far the largest IT infra-
structure provider in the Nordic region, with the broad-
est range of products and services and the highest level of
strategic partner ship with top IT vendors. As customers’
IT environments become larger and more complex, they
are turning to full service partners such as Atea with the
competence to advise and support customers with their
digital transformation.
The market for IT infrastructure continues to grow, as
organizations increase their spending on information
technology to enhance their capabilities and transform
their operations. During the past two years, the COVID-19
pandemic has accelerated the digital transformation of the
workplace, as organizations have been forced to rely on IT
solutions to adapt to travel restrictions and remote work.
This has demanded changes in how organizations collaborate
across their workforce and transact with customers, vendors
and other stakeholders.
As employees return to the workplace in 2022, customers
will continue to innovate in their use of information technol-
ogy to transform their operations. Some changes in work
patterns from the COVID pandemic will persist, as many
organizations move toward a “hybrid” model of remote and
on-premise work, with greater use of digital collaboration
tools. All of this innovation in the use of IT will drive further
growth in the IT infrastructure market.
As we enter 2022, we see the following trends across
our business lines:
In hardware, Atea expects market growth to pick up during
the coming years, as organizations have postponed workplace
investments during the COVID pandemic and now need to
maintain and upgrade their IT equipment. We also expect
Steinar Sønsteby joined Atea in 1997 and was manag-
to Norway Sønsteby was CEO of Atea in Norway
until 2012 when he became Executive Senior Vice
President of Atea ASA. In January of 2014 Sønsteby
was appointed CEO of Atea ASA. Before joining Atea
Steinar Sønsteby holds a degree in Mechanical
Design from Oslo College of Engineering and a
Bachelor of Science in Mechanical Engineering
a finance degree from Norwegian School of
Steinar Sønsteby
CEO
A letter from the CEO
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increased demand for collaboration solutions such as video
meeting rooms, as organizations have become accustomed
to digital interaction as an effective substitute for travel and
physical meetings. Network upgrades will also be necessary,
to support increased communication requirements, enhance
network security and adapt to new standards.
During 2021, supply chain constraints in the global electron-
ics industry have limited deliveries to customers and resulted
in delays in major projects. The shortage has been most felt
in deliveries of data center and networking equipment. Atea
expects that current supply chain constraints will ease over
the course of 2022, enabling greater shipment volumes and
a falling order backlog by year end.
In software, the market has been robust for the last several
years. In 2022, Atea expects solid growth based on high
customer demand and increased list pricing by key vendors.
Margins will continue to be under pressure, driven both
by fierce competition for large customer agreements and
by changes in IT vendors’ incentive programs to channel
partners such as Atea.
The role of the software reseller is in a long-term transition
from administering software licenses to managing cloud
subscriptions and providing value-added services. This trend
favors large resellers such as Atea with high service capa-
bilities. Major growth opportunities are in software asset
management, cloud migration, and management of hybrid/
multicloud environments.
In services, Atea has organized its business into three
major areas: lifecycle management, professional services
and managed services.
Lifecycle management involves supporting customers in
managing their IT assets throughout the lifecycle of each
product they acquire. This includes project and installa
-
tion support, software packaging, asset tracking, financing,
maintenance agreements and recycling/disposal of equip-
ment. As customers’ struggle to manage a growing volume
of IT assets, demand for Atea’s lifecycle management services
has grown. During the COVID pandemic, demand was
negatively impacted by access restrictions to the workplace.
As these restrictions ease, Atea expects a corresponding recov-
ery and new growth phase in lifecycle management services.
Professional services involves IT consulting - on the design
of customers’ IT environments, the management of their
information, and the integration and use of specific IT
solutions. As IT environments become more complex and
business critical, demand for professional services has shown
strong growth over many years. During 2021, Atea has hired
additional consultants in key growth areas to further expand
its offering in professional services.
Managed services are long-term contracts through which
Atea helps customers operate their IT environments - either
on-premise, in Atea’s datacenters, from the public cloud, or
a combination of the three. Atea’s managed services enable
customers to dedicate less time and resources on IT opera-
tions and instead focus on their core objectives. We expect
demand for managed services to continue to grow in the
coming years, as customers seek a partner to help them with
the challenge of operating their increasingly complex hybrid
IT environments.
With many areas of growth in our market - both in hard-
ware, software and services – Atea has adapted its organi-
zation model over the past year to support the expansion
of our business. During 2021, Management launched the
“One Atea” program to better align strategy and operations
across geographies. Specialist teams are being established to
coordinate and drive business development and best practice
execution within each of Atea’s business lines. The program
is also accelerating the alignment of back office functions
and supply chain operations in order to capture efficiencies
through scale and increased use of automation.
Atea aims to consolidate and optimize its platform of opera-
tions through the “One Atea” program, and better leverage
the full capabilities of Atea toward each of our customers.
Each area of our business has established action plans within
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the “One Atea” program, with three-year targets for profit
improvement through increased sales and higher efficiency.
In addition to its organic development, Atea will become
more aggressive with its M&A strategy going forward. The
IT infrastructure market is consolidating as scale advantages
become increasingly important for IT resellers and service
providers. Atea has a strong balance sheet for conducting
acquisitions and excellent platform for acquiring attractively
valued companies which can benefit from integration with
the Atea Group. Acquisitions will focus on Nordic targets
with high cross-selling opportunities and with the potential
to realize economies of scale through integration.
In sum, our business is in a really exciting position as we
enter 2022. Atea has a unique position as the largest IT
infrastructure provider in the Nordic region, with competi-
tive advantages that are becoming even more valuable each
year based on customer trends. Our market is set for solid
growth across each of our business lines, as organizations
invest increasing sums in information technology. We have
implemented a program to support the expansion of our
business, which will both enhance our capabilities and drive
efficiency across geographies. We have a strong balance sheet
for driving consolidation through M&A and an excellent
operating platform for integrating acquisitions and capturing
synergies.
And finally, we have a highly competent team of more than
7,500 employees, which have done a fantastic job in driving
our business in challenging times. I want to thank all Atea
employees for their dedication and contribution to our
company over the last years.
To our shareholders, I wish to say thank you for your trust
in our journey. We look forward to reaching new heights of
profitable growth at Atea in 2022.
Oslo, 17 March 2022
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The Atea Group had another year of record
high revenue and operating profit in 2021,
despite global supply shortages in the elec-
tronics industry which limited hardware
deliveries to customers. Atea’s business in
Denmark greatly improved its financial
results following a reorganization in 2020,
and made a major contribution to the Group’s
profit growth in 2021.
Group revenue increased by 7.5 % in constant
currency to NOK 41.3 billion, with solid
growth across all business lines. EBIT for
the full year 2021 was NOK 1,046 million,
up 23 % from last year. Net profit after tax
was NOK 763 million, up 29 % from last year.
During 2021, Management launched the
“One Atea” program to better align strategy
and operations across geographies. Special-
ist teams are being established to coordinate
and drive business development and best
practice execution within each of Atea’s busi-
ness lines. The program is also accelerating
the alignment of backoffice functions and
supply chain operations in order to capture
efficiencies through scale and increased use
of automation.
Atea aims to be an industry leader within
corporate social responsibility and won
numerous awards for its sustainability efforts
during the past year. Atea was recognized
as one of the most sustainable corporations
in the world (51
st
overall, and 1
st
in the IT
services industry) by Corporate Knights as
part their annual “Global 100” ranking. Atea
was also awarded the highest rating in envi-
ronmental and social performance by EcoV-
adis for the second straight year, ranking
Atea in the top 1 % of 85,000 organizations
evaluated globally. The Financial Times
recognized Atea among a select group of
Europe’s Climate Leaders - companies that
have made the greatest progress in curbing
their greenhouse gas emissions.
The Board of Atea ASA would like to thank
all Atea employees for their contribution
to the Group’s performance in a difficult
industry environment during the past year.
Company overview
Atea is the leading provider of IT infrastruc-
ture and related services to organizations
within the Nordic and Baltic regions. The
Group has more than 7,500 employees and is
located in 85 cities across Norway, Sweden,
Denmark, Finland, Latvia, Lithuania and
Estonia. Approximately 60 % of Atea’s sales
are to the public sector, with the remainder
of sales to private companies. The Group is
headquartered in Oslo, Norway.
Atea is the largest provider of IT infrastruc-
ture within each of its local markets and is
the third largest provider in Europe. The
company is approximately three times larger
than its largest competitor in the Nordic and
Baltic regions, with an estimated market
share of approximately 20 %. Atea’s business
strategy is to strengthen and consolidate its
market leadership position through organic
growth and selective acquisitions, and to
continuously focus on improving operating
efficiency.
Through its scale of operations, Atea has
critical advantages versus smaller competi
-
tors in purchasing power, local market pres-
ence, breadth of product and service offering,
system integration competence, and cost-
efficient support and logistics functions. This
is reflected in the long-term financial perfor-
mance of the Group. Atea’s leading market
position and competence in IT infrastructure
has enabled the company to grow organically
at a rate higher than that of the market.
In addition to organic growth, Atea has
pursued an M&A strategy to further
strengthen and consolidate its market posi-
tion. Atea’s current organizational structure
is the result of the merger of the leading
IT infrastructure companies in Denmark,
Norway, Sweden and Finland in 2006. Since
this merger, Atea has acquired more than 50
companies including the leading IT infra-
structure company in the Baltic region, at
valuation multiples significantly below those
of Atea ASA.
To address the needs of the Nordic and Baltic
markets, Atea works closely with leading
international IT companies, such as Micro-
soft, Cisco, HP Inc., Hewlett Packard Enter-
prise, IBM, Apple, Lenovo, VMware, and
Dell Technologies. These companies view
the Nordic region as a critical market for the
early adoption of new technologies and work
closely with Atea to penetrate these markets.
This enables Atea to stay at the forefront of
the latest IT trends, and to offer its customers
new and innovative IT solutions.
Market trends
The market for information technology is in
the midst of dramatic change, with profound
effects on society, known as the “digital
transformation”.
Across private enterprise and throughout
the public sector, organizations are convert-
ing vast amounts of information into digital
form. As information is made digital, it can
be collected, processed, managed, and distrib-
uted with methods and at a scale which was
previously impossible. This “digitalization”
Board of Directors Report 2021
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enables public and private organizations to
completely redefine how they provide goods
and services, and how these goods and
services are consumed and shared.
The resulting “digital transformation” is
driving innovation in all sectors of the
economy and all public services, including
health, welfare, education, defense, policing
and infrastructure management. Collec-
tively, this can result in major improvements
in productivity and living standards.
At the same time, the “digital transfor-
mation” places even greater demands on
organizations’ IT environments, as the
amount of data which is being managed
grows exponentially across a broadening
range of devices. Furthermore, as digital
information and processes become central to
the definition of goods, services and of work
itself, the capabilities and stability of the IT
environment become essential for organiza-
tions to function. Consequently, the risk of
security breaches becomes ever greater. All
of this creates a level of complexity which IT
departments struggle to support.
This presents a significant opportunity for
Atea, as the leading provider of IT infrastruc-
ture and system integration in the Nordic
and Baltic regions. Through its breadth of
competency and depth of expertise, Atea
supports its customers in managing the
continuous growth and increased complex-
ity of their IT environments. Atea helps its
customers to design, implement and operate
the IT infrastructure upon which they
are dependent as their operations become
increasingly digital.
Business strategy
Atea’s business strategy is to act as a full
service IT infrastructure partner for its
customers - enabling its customers to
successfully pursue their digital transforma-
tion initiatives and manage the increasing
complexity of their IT environments.
In order to earn a position as a trusted IT
partner, Atea provides a complete range of
IT infrastructure solutions, with a highly
trained service team to support its custom-
ers in capturing maximum value from their
IT investments.
Atea’s solution offering:
The range of solutions which Atea provides
its customers can be categorized in three
major areas: “Digital Workplace”, “Hybrid
Platforms” and “Information Management”.
•
“Digital Workplace” consists of all the
devices and software through which users
conduct work, access data and applications,
and interact with each other. Examples
include PCs, mobile phones and tablets,
audio/video and conferencing solutions,
smart displays, printers, and more.
•
“Hybrid Platforms” are the data center
and network infrastructure through
which organizations process, store, and
distribute information. The category
includes both on-premise infrastructure
and cloud solutions, as well as “hybrid”
solutions which integrate the two.
•
“Information management” consists of
tools and methods through which organi-
zations collect and administer data, and
then derive value from this information.
This includes Atea’s practices within data
protection, analytics/AI, and automation
technologies.
Atea’s service portfolio:
Atea supports customers with the design,
implementation and operation of their IT
environments through a broad portfolio of
services. The service portfolio can be broken
into three categories: “Lifecycle Manage-
ment”, “Professional Services”, and “Managed
Services”.
•
“Lifecycle Management”: Atea’s service
team assists customers in all aspects of
managing their IT assets throughout the
lifecycle of each product they acquire.
This includes services to help customers
deploy, install, finance, maintain, track
and dispose of their IT assets.
•
“Professional services”: Atea’s consult-
ants advise customers in the design and
integration of their IT environments,
the management of their information,
and how specific IT solutions can best be
used to fulfill their objectives.
•
“Managed services”: Atea is a managed
service provider which helps customers
operate their IT environments either
on-premise or from the cloud. Atea’s
managed services enable customers to
dedicate less time and resources on IT
operations and instead focus on their core
objectives.
Financial summary
Income Statement
Group revenue in the full year 2021 was
NOK 41,316 million, an increase of 4.6 %
from last year. Revenue growth in constant
currency was 7.5 %. Currency fluctuations
had a negative impact of 2.7 % on revenue
growth. All revenue growth was organic.
Hardware revenue increased by 4.8 % to
NOK 20,670 million, despite global supply
shortages in the electronics industry which
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limited deliveries throughout the year. Soft-
ware revenue grew by 5.0 % to NOK 13,183
million, based on higher demand from the
public sector. Services revenue increased
by 3.4 % to NOK 7,463 million, with solid
growth across all countries.
Gross profit was NOK 8,446 million,
compared with NOK 8,236 million last
year. Gross margin fell from 20.8 % to 20.4 %,
based on lower margins in Atea’s software
business. Lower software margins were
caused both by competitive pressures and by
changes in IT vendors’ incentive programs to
channel partners such as Atea. This margin
compression is driving a consolidation of the
market toward fewer resellers, a trend which
has enabled Atea to capture market share.
Total operating costs were NOK 7,400
million, up 0.2 % from last year. Higher
personnel costs were offset by lower depre-
ciation costs and other operating expenses.
Other operating expenses fell by NOK
89 million from last year, due to foreign
currency translation and generally low
selling and facility costs throughout the year.
Furthermore, Atea recognized a gain on the
acquisition of the affiliated company eRate
in December 2021. The transaction resulted
in other (non-customer) income of NOK 32
million, which is reported as a reduction of
other operating expenses, see Note 14 of the
Annual Report.
EBIT for the full year 2021 was NOK 1,046
million, up 22.5 % from last year. The EBIT
margin improved to 2.5 %, up from 2.2 % last
year. The improved EBIT reflects a major
turnaround in profitability of the Danish
operations following a restructuring in
2020. In addition, the operations in Sweden,
Norway and the Baltic countries all delivered
a solid improvement in results.
Net financial items were NOK -104 million
for the year, compared with NOK -105
million in 2020. NOK 52 million of these
costs were related to facility leases, as recog-
nized in accordance with IFRS 16 ‘Leases’.
Otherwise, interest on loans were NOK
38 million and losses on foreign exchange
translation were NOK 15 million in 2021.
Profit before tax was NOK 942 million
compared with NOK 749 million last year.
Tax expenses were NOK 179 million in 2021,
representing an effective tax rate of 19.0
percent. Net profit after tax grew by 29.3 %
to NOK 763 million in 2021, compared with
NOK 590 million last year. This represents a
basic earnings per share of NOK 6.86 in 2021
compared with NOK 5.37 in 2020.
In accordance with section 3-3a of the
Norwegian Accounting Act, the Board of
Directors confirms that the prerequisites
for continued operations have been met,
and that the financial statements have been
prepared on a going-concern basis.
Segmentation
Atea has commercial operations in Norway,
Sweden, Denmark, Finland and the Baltics.
These geographic regions have their own
management, and are reported as separate
operating segments. There is also a Shared
Services operating segment, which encom-
passes support functions such as Atea Logis-
tics and Atea Global Services.
The financial performance of each business
unit is presented in Note 5 of the Group
financial report. A summary of business
performance follows:
Sweden is Atea’s largest market, representing
42 % of Group revenue in 2021. During 2021,
revenue in Atea Sweden increased by 6.9 %
to SEK 17,137 million, with strong growth
across all business lines. Based on higher
sales and relatively low growth in operating
expenses, EBIT for the full year increased by
13.0 % to SEK 525 million.
0
10,000
20,000
30,000
40,000
50,000
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0
200
400
600
800
1,000
1,200
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Key figures, nøkkeltall
2021
Sett inn komma
manuelt som
tusenskille!
2021
Revenue
32,438
34,708
36,655
39,503
41,316
0
10,000
20,000
30,000
40,000
50,000
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Revenue, Konsern Revenue per country
0
200
400
600
800
1,000
1,200
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2021
Sett inn komma
manuelt som
tusenskille!
2021
EBIT
799
690
747
854
1,046
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Norway is Atea’s second-largest market,
representing 24 % of Group revenue in
2021. During 2021, revenue in Atea Norway
increased by 4.7 % to NOK 9,872 million, as
strong growth in sales of software offset
lower shipments of hardware due to supply
constraints in the electronic industry. EBIT
in Norway was NOK 363 million, an increase
of 11.6 % from 2020.
Denmark is Atea’s third-largest market,
representing 23 % of Group revenue in 2021.
During 2021, Atea’s business in Denmark
greatly improved its financial results follow-
ing a restructuring in 2020. Revenue in Atea
Denmark increased by 16.8 % to DKK 7,037
million, driven by strong growth in sales
of hardware and services. Based on higher
sales, EBIT was DKK 41 million, compared
with an operating loss of DKK 64 million
in 2020.
Finland represented 8 % of Group revenue in
2021. During 2021, revenue in Atea Finland
fell by 3.7 % to EUR 339.8 million. The
decline in revenue was due to the loss of a
large software frame agreement at the start
of 2021, offsetting solid growth in revenue
from hardware and services. As a result of
lower software revenue, EBIT fell by 3.8 %
from last year to EUR 8.5 million.
The Baltics represented 3 % of Group revenue
in 2021. In 2021, revenue in Atea Baltics
increased by 7.9 % to EUR 138.2 million
and EBIT increased by 19.2 % to EUR 5.7
million. Growth in revenue and profitability
was driven by higher sales of hardware and
services.
Balance Sheet and Cash Flow
As of 31 December 2021, Atea had total
assets of NOK 16,048 million. Current
assets such as cash, receivables and inven-
tory represented NOK 9,727 million of this
total. Non-current assets represented NOK
6,321 million of this total, and primarily
consisted of goodwill (NOK 3,942 million),
property, plant and equipment (NOK 493
million), right-of-use leased assets (NOK
1,200 million) and deferred tax assets (NOK
276 million).
Atea had total liabilities of NOK 12,518
million, and shareholders’ equity of NOK
3,530 million as of 31 December 2021. In
order to reduce the volatility of its working
capital and debt balances throughout the
year, Atea sells specified accounts receivable
through a securitization program organized
by its bank. At the end of Q4 2021, Atea had
sold receivables of NOK 1,848 million under
the securitization program.
The Group’s cash flow from operations was
an inflow of NOK 1,096 million in 2021,
based on solid cash earnings. Atea’s working
capital requirements increased from last
year, as the company acquired inventory
to secure hardware deliveries to customers
during a period of supply constraints in the
electronics industry. This impact is expected
to be temporary and to normalize in 2022.
Cash flow from investments was an outflow
of NOK 273 million in 2021, primarily
driven by investments in IT systems and data
center equipment. Cash flow from financing
was an outflow of NOK 870 million in 2021.
The negative cash flow from financing was
primarily due to dividend payments of NOK
555 million and lease payments of NOK 327
million.
The Group’s net cash flow was an outflow of
NOK 47 million in 2021. Currency fluctua-
tions reduced the cash balance by NOK 205
million during the year. The Group’s cash
balance was NOK 1,353 million at 31 Decem-
ber 2021, compared with NOK 1,605 million
at 31 December 2020. At the end of 2021,
Atea had a net financial position as defined
by Atea’s loan covenants (total cash balance,
less interest-bearing debt excluding right of
use leases) of NOK 822 million.
Atea’s interest-bearing debt primarily
consists of a loan of NOK 475 million from
the European Investment Bank, due to
mature in 2023. The Group has additional
short-term credit facilities to manage fluc
-
tuations in liquidity throughout the year,
as well as leases related to specified assets.
Further information on debts and credit
facilities can be found in Note 22 in the
Group financial statements.
Risk factors
Market risk
The market for IT infrastructure has histori-
cally maintained a relatively stable growth
rate throughout the economic cycle. Accord-
ing to data from IDC, the Nordic market for
IT infrastructure has grown at an annual
rate of approximately 5-6 percent from 2010
- 2021. The market for IT infrastructure
grew in all years except for 2020, when it
is estimated to have declined by less than 1
percent from 2019.
Atea’s share of the IT infrastructure
market has grown steadily over time, both
through organic growth and through
acquisitions. The company benefits from a
unique competitive position, in which it is
the largest player in the Nordic and Baltic
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
markets, with the widest office network, and
the broadest offering of products, services
and system integration competence.
Due to its market share and competitive
advantages, the company develops stable
long-term relations with its customers.
Approximately 60 % of Atea’s revenue comes
from the public sector, in which demand is
less sensitive to changes in the economic
cycle. Many of Atea’s customer contracts,
especially in the public sector, are frame
agreements in which the customer selects
Atea as an IT partner for a term of roughly
3 – 5 years. In addition, a large and growing
proportion of the company’s service revenue
comes from managed service contracts of
one year or more.
The company is exposed to pricing and
performance risk from its key vendors.
Due to Atea’s position as the third largest
IT infrastructure provider in Europe, the
company has the highest level of partner
certification and significant negotiating
power with its key vendors. When possible,
the company works closely with at least two
primary vendors in each product category
to boost competition and avoid vendor risk.
Financial risk
Financial risk management for the Group
is the responsibility of the central finance
department, in compliance with guidelines
approved by the Board of Directors. The
Group’s finance department identifies and
evaluates financial risk and ensures that the
necessary measures are carried out in close
cooperation with the respective operating
units.
In order to ensure financial stability in the
event of adverse market conditions, the
Group maintains a healthy balance of debt,
equity and working capital. The Group’s
goal is to maintain an adjusted equity ratio
(shareholder’s equity divided by total assets
excluding IFRS 16 right-of-use assets and
sublease receivables) in excess of 20 %. In
addition, the Group maintains a maximum
operational gearing (net debt divided by pro
forma EBITDA) of 2.5.
Atea is exposed to foreign currency fluc-
tuations, especially from the Swedish krona
(SEK), the Danish krone (DKK), US dollars
(USD) and the Euro (EUR), since part of the
company’s revenues and purchases of goods
are in foreign currencies. It is company
policy that all significant, committed goods
or loan transactions with foreign currency
exposure are to be hedged with forward
contracts. The company is also exposed to
fluctuations in interest rates, since nearly all
of the company's debt facilities have floating
interest rates.
Credit risk
Historically, the Group has had very few
losses on receivables. The Group has not
experienced materially greater losses on
receivables in 2021 than in previous years.
No agreements relating to offsetting claims
or other financial instruments that would
minimize the company’s credit risk have
been established, however, the Group
continues to have a high focus on credit
assessment and collections.
Liquidity risk
The company considers its liquidity risk to
be limited. Atea has significant liquidity
reserves available through credit facilities
with its primary bank.
Atea’s loan covenants require that the
company’s net debt balance remain below
2.5 times its pro forma EBITDA for the last
twelve months (including acquired compa-
nies) at each quarter-end. The covenants
exclude incremental net lease liabilities due
to the adoption of IFRS 16 from the defini-
tion of net debt. As defined by the covenants,
Atea had a positive net financial position
of NOK 822 million at 31 December 2021,
resulting in an available liquidity reserve of
NOK 4,972 million before the debt covenant
is reached.
0
5
10
15
1312111009
Antall opkjøp,
2009-2013
0
250
500
750
1,000
1312111009
Operasjonell kontantstrøm
2009-2013
0
1000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2120191817
Utvikling antall fulltids ansatte
2017-2021
Antall ansatte
pr. 31 desember 2021
Styrets beretning
Sett inn komma
manuelt som
tusenskille!
2021
Change in number of full-time employees
6,904
7,38 5
7,585
7,337
7,658
Number of employees
At 31 December 2021
0
5
10
15
1312111009
Antall opkjøp,
2009-2013
0
250
500
750
1,000
1312111009
Operasjonell kontantstrøm
2009-2013
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2019181716
Utvikling antall fulltids ansatte
2016-2020
Antall ansatte
pr. 31 desember 2020
Styrets beretning
Norway: 1,753
Sweden: 2,570
Denmark: 1,404
Finland: 426
The Baltics: 682
Group Shared
Services/parent
company: 823
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Other risk factors
Supply chain constraints
The COVID-19 pandemic has created supply
constraints for many hardware products,
resulting in longer delivery cycles. Rapid
shifts in demand for electronic devices
during the pandemic have caused short
-
ages of key components, and semiconductor
fabricators have not had surplus capacity to
respond. While new semiconductor capacity
is now being built, the current supply short-
age is expected to continue to impact the IT
hardware market for much of 2022.
At present, the supply shortages have had
the greatest impact on shipments of servers,
storage and networking equipment, as well
as audio/video solutions, resulting in longer
lead times for delivery to customers. As a
consequence, Atea has a very high order
backlog entering 2022, with a large propor-
tion of the order backlog coming from these
product categories. Hardware supply short-
ages will continue to lead to longer delivery
times during 2022, but this impact should
diminish throughout the year.
Climate change
The Group has assessed whether climate
change or efforts to reduce carbon emissions
will negatively impact Atea’s business as a
provider of IT infrastructure. The Group
does not consider this risk to be material, as
both the supply chain and market demand
for IT infrastructure will adapt to changes
in the business environment from climate
change. See Note 13 for more information.
Personnel and Organization
The Group had 7,658 full-time employees at
31 December 2021, a net increase of 321 from
1 January 2021. During the course of 2021,
Atea hired additional resources to develop
its services business within consulting and
managed services. The average number of
full-time equivalents employed by the Group
was 7,441 in 2021, compared with 7,339 in
2020.
Atea’s long-term success is dependent on
recruiting skilled IT professionals and
providing its employees with a work envi-
ronment in which they can develop and
contribute with their talents. The work
environment and culture are central to
Atea’s vision of being “The Place to Be” for
its employees, customers and vendors.
Common guidelines have been established
for recruitment activities, to ensure that
Atea is attracting and hiring skilled profes-
sionals across the organization. Extensive
competence training is conducted in all
parts of the organization. Employee surveys,
and goal and development meetings with
employees are held regularly.
An introduction program has been
implemented in every country to quickly
integrate new employees. This includes
training in Atea's business systems, values,
ethical guidelines and corporate culture.
All employees are required to successfully
complete an examination on Atea’s Code of
Conduct and sign a confirmation that they
will comply with the Code.
Health, safety and the
work environment
Atea has worked systematically to promote
health among employees and to improve
safety and environmental standards at the
workplace. The company has encouraged
employees to work from home during the
COVID-19 pandemic, as recommended or
required by local health authorities. At the
workplace, strict measures have been taken
to prevent the spread of the coronavirus.
For the Group, absence due to illness was
2.4 %, up from 2.1 % in 2020. Absence due to
illness was 3.6 % in Norway, 1.9 % in Sweden,
2.2 % in Denmark, 1.7 % in Finland, 2.1 % in
the Baltics and 2.6 % in Shared Services.
Absence due to illness was 0 % in the parent
company.
The risk of occupational injury is very low.
In 2021, there were no occupational injuries
resulting in absence.
Equality of opportunity
Diversity and gender equality are core values
at Atea. The Group strives to provide a work
environment that is free from discrimination
based on gender, nationality, religion, skin
color, sexual orientation, age or disability.
At 31 December 2021, women represented
25.0 % of the Group's employees, compared
with 23.7 % at the end of the previous year.
In the parent company, women represented
20.0 % of the Group's employees, unchanged
from the previous year. There were ten
employees in the parent company at the end
of 2021, and eight of these are men.
The low percentage of female employees
within the Group reflects the IT industry
in which the company operates. The Group
works systematically to recruit women at
all levels and to encourage that they remain
with Atea. We continue to encourage more
women to work in the IT industry by arrang-
ing activities to promote gender balance. As
stipulated in the Anti-Discrimination Act,
our company adheres to a policy that forbids
discrimination against any employee because
of age, national origin, religion, sexual orien-
tation or disability.
Atea provides a suitable work environ-
ment for employees with disabilities. The
company modifies the physical environment
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
of the workplace as necessary to facilitate
employees with special needs.
More information about equal opportunity
is disclosed in the Corporate Responsibility
& Sustainability Report 2021 at atea.com.
Corporate Governance
Atea’s guidelines for Corporate Governance
are in accordance with the Norwegian Code
of Practice for Corporate Governance, dated
14 October 2021, as required for all listed
companies on the Oslo Stock Exchange.
Furthermore, the guidelines meet the
disclosure requirements of the Norwegian
Accounting Act and the Securities Trading
Act. The guidelines are included separately
in the annual report.
The Group has an ordinary Directors &
Officers Insurance protecting the Board of
Directors and management from personal
liability. The maximum liability amount
covered is NOK 250 million.
Corporate Social Responsibility
Atea's mission is to build the future with IT,
together with its employees, its customers and
its vendors. Atea’s sustainability agenda is an
essential part of the company’s mission. The
company has received numerous recognitions
for its leadership within sustainability.
In 2020, Atea launched a 10-year plan for its
sustainability agenda. The plan is described
in our latest corporate responsibility report,
published in March 2021 at atea.com. From
year 2021, an assurance report has been
issued.
During the past year, Atea:
•
was recognized as one of the most
sustainable corporations in the world, by
Corporate Knights as part their annual
ranking called “Global 100”. Atea ranked
51
st
overall, and 1
st
in our industry (IT
Services).
•
received the highest rating by the Govern-
ance Group in the new report “ESG 100
- How the largest 100 companies on the
Oslo Stock Exchange report on ESG”.
•
was awarded the highest rating in envi-
ronmental and social performance by
EcoVadis, an achievement that ranks Atea
in the top 1 % of 85,000 organizations
evaluated globally.
•
was among a select group of European
companies, that have made the greatest
progress curbing their greenhouse gas
emissions. The ranking was made by the
Financial Times and Statista
.
•
was recognized as a “Transparency
Partner” by Nasdaq, an initiative focusing
on improving the ESG information flow
between listed companies and the investor
community.
•
won the Dell Technologies 2021 EMEA
Excellence in Social Impact award.
Atea observes the UN Global Compact's
principles in the areas of human rights, labor
rights, the environment and anti-corruption.
Atea also participates in a number of recog-
nized national and international initiatives
focused on sustainability, including the UN
Global Compact, Carbon Disclosure Project
and Responsible Business Alliance.
Environmental initiatives
Atea believes that IT will play a vital role in
helping to face the potentially irreversible
impact of climate change and in facilitating
the necessary sustainable transition of society.
This is why the Group launched a long-term
sustainability plan in 2020, addressing mate-
rial areas through five overarching targets.
The overall ambition of the plan is to signifi-
cantly reduce the environmental footprint for
Atea´s own operations, and through dialogue
and targeted actions help our customers and
partners achieve the same.
Atea supports its customers in implement-
ing sustainability policies regarding their
use of information technology. Atea has
formed a coalition with its customers called
Atea Sustainability Focus (ASF), which uses
the collective voice of Nordic IT buyers to
influence the electronic industry towards
more sustainable operations. Atea promotes
“circular economy” solutions relating to the
use of IT. The circular economy is a concept
that seeks to minimize resource consump-
tion and the need to extract virgin materials
through recycling and reuse.
In Växjö, Sweden, Atea operates the largest
electronic recycling-and-reuse operation
in the Nordic and Baltic region. Electronic
devices can be a major driver of carbon emis-
sions and waste within organizations. Most
of the carbon emissions from an electronic
device occurs when the device is manufac-
tured or disposed of. Therefore, extending
the lifecycle of electronic equipment is a
highly effective way of reducing carbon
emissions and waste.
Through its innovative “GoITloop” program
with customers, Atea processed over 437
thousand personal computers and mobile
devices for recycling and reuse in 2021.
Atea receives older used equipment from
its customers, fully cleanses the equipment
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
of data, and refurbishes the equipment for
reuse. This recycling operation has a major
impact on the carbon footprint and elec-
tronic waste of Atea’s customers.
Finally, Atea’s cloud computing solutions
help customers to reduce carbon emis
-
sions and resource use. Atea’s data center
operations are scaled for energy efficiency
by consolidating many customers on one
multitenant platform. At the same time,
customers benefit from higher and more
stable utilization of server capacity when
sharing resources in a multitenant environ-
ment, reducing the need for managing excess
capacity of servers and storage units.
The company's work in promoting sustain-
able IT solutions across the Nordic and
Baltic regions is further described within
the annual Corporate Sustainability report
at atea.com
Allocation of Net Profit
Atea ASA is the parent company of the
Group. The parent company has a total of 10
employees, including the Group's CEO, CFO
and associated staff functions. In 2021, the
net profit of Atea ASA was NOK 436 million.
The Board of Directors proposes to transfer
the entire net profit of Atea ASA to retained
earnings.
Based on the Atea Group’s financial perfor-
mance in 2021, the Board will propose a
dividend of NOK 5.50 per share at the annual
general meeting in April 2022. Atea’s divi-
dend policy is to distribute approximately
70 – 100 percent of the Group’s net profit
after tax to shareholders in the form of a
dividend. The dividend payment represents
80 percent of Atea’s basic earnings per share
during 2021. The dividend will be paid in
two installments of NOK 2.75 per share in
May and November 2022. In February 2022,
the Board authorized the repurchase of an
additional 1,000,000 shares.
Atea ASA has been actively repurchasing
shares during 2021 based on its strong
cash position. Over the course of 2021,
the company returned NOK 215 million
to shareholders through the buyback of
1,354,000 shares. The Board will propose
that the AGM renews its mandate to author-
ize a share buyback at the annual general
meeting in April 2022.
Business Outlook
As the Nordic IT infrastructure market
continues to grow, Atea is very well-posi-
tioned for revenue and profit growth during
the coming years, driven by the following
key factors:
1. Strong competitive advantages
Atea has a unique competitive position as
the largest IT infrastructure provider in the
Nordics, and has the highest level of strate-
gic partnership with top IT vendors. This
creates critical competitive advantages in
purchasing and vendor support, and allows
Atea to stay at the forefront of the latest IT
trends and product releases.
Atea’s position as a full service IT infrastruc-
ture partner is also unique in the Nordics.
As enterprise IT becomes more business
critical and complex, customers increasingly
seek a partner with the service competence
to support the design, implementation and
operations of their IT environments.
With a staff of over 4,000 IT service person-
nel spread across 85 cities in the Nordic and
Baltic regions, Atea enables its customers to
manage the increasing complexity of their
IT environments and successfully transform
their enterprise through the use of informa-
tion technology.
2. Strategy to leverage scale
The Atea Group was formed through the
merger of 50 IT companies from 2006 –
2015, which were consolidated into national
business units. There remains a significant
opportunity for Atea to strengthen its busi-
ness capabilities and improve profitability
through closer integration of its operations
across borders.
In order to fully capture Atea’s scale advan-
tages, Atea is implementing the “One Atea”
program to align its operations and coordi-
nate strategy across countries. The program
will establish specialist teams to drive
strategy and best practice across each of its
business lines, including Hardware/lifecycle
management, Software/cloud transforma-
tion, Professional services and Managed
services. The program is also accelerating
the alignment of backoffice functions and
supply chain operations in order to drive
efficiencies through scale and improved use
of automation.
3. Turnaround in Denmark
Atea is by far the largest IT infrastructure
provider in Denmark, with a market lead-
ership position comparable to that in other
countries. From 2014 – 2020, Atea’s EBIT
margin in Denmark fell from being the
highest in the Atea Group to a large oper-
ating loss. The decline in profitability was
driven by legal issues resulting in reputa-
tional damage with customers and a court
conviction in 2018.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
In Q1 2020, Atea reorganized its business
in Denmark and implemented a cost reduc-
tion program, appointing a new managing
director as well as other key management
positions. The business in Denmark has
shown a strong recovery since the reor
-
ganization. Atea Denmark’s revenue for the
full year 2021 has grown by 16.8 % from the
prior year, with higher sales across all busi-
ness lines. EBIT has also improved greatly,
increasing from a loss of DKK 64 million in
2020 to a profit of DKK 41 million in the
full year 2021.
Atea Denmark’s reputation in the Danish
market has also greatly recovered. In April
2021, Atea regained its position as the most
trusted brand in Denmark among IT infra-
structure resellers in the highly regarded
Computerworld survey of IT professionals.
Atea’s business in Denmark still has a long
gap to reach the profit margins in other Atea
countries, but its revenue and EBIT growth
momentum have been very strong. As the
Danish business continues to recover and
normalize, this will greatly benefit profit
growth in the Atea Group.
4. Industry consolidation
The IT infrastructure market is consoli-
dating across all global markets, as scale
becomes a critical competitive advantage to
serve customers with increasingly complex
requirements. Atea has historically been a
leader in driving market consolidation in the
Nordic region through M&A, but has been
less active in recent years.
Based on its competitive position in
the Nordic market, Atea sees business
opportunities to selectively acquire compa-
nies at a reasonable price if synergies can be
achieved through integration with the Atea
Group. Atea has the capability to finance
acquisitions through its balance sheet, as the
Group maintains a strong net cash balance
and high debt capacity.
Potential acquisitions would focus on Nordic
targets with high cross-selling potential
through integration with Atea Group, and
may include:
•
Infrastructure VARs with a customer base
where Atea can sell its services portfolio.
•
Consultancies with competence in busi-
ness areas which can be cross-sold to
Atea’s customers.
•
Managed services companies with an
offering which can scale to Atea’s broader
customer base.
In sum, Atea is well positioned to drive
revenue and profit growth in the coming
years, based on its unique competitive
position in the Nordic region, its ongoing
business recovery in Denmark, and based on
programs to fully leverage its scale advan-
tages both through internal integration and
through potential acquisitions.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
RESPONSIBILITY STATEMENT
We confirm to the best of our knowledge that;
•
the consolidated financial statements for 2021 have been prepared in accordance with IFRS as adopted by EU, as well as additional information
requirements in accordance with the Norwegian Accounting Act, and that
•
the financial statements for the parent company for 2021 have been prepared in accordance with simplified IFRS pursuant to section 3-9 of
the Norwegian Accounting Act, as well as additional information requirements in accordance with the Norwegian Accounting Act, and that
• the information presented in the financial statements gives a true and fair view of the Company’s and Group’s assets, liabilities, financial
position and result for the period viewed in their entirety, and that
•
the Board of Directors report gives a true and fair view of the development, performance and financial position of the Company and Group,
and includes a description of the principal risks and uncertainties.
Oslo, 17 March 2022
Morten Jurs
Ib Kunøe
Chairman of the Board
Christian Våge
Saloume Djoudat
Lisbeth Toftkær Kvan
Sven Madsen
Marianne Urdahl
Leiv Jarle Larsen
Steinar Sønsteby
CEO
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Saloume Djoudat (born 1977)
Member of the Board
Saloume Djoudat has been a partner in Bull & Co Advokatfirma AS since
2013, coming from a previous position as a General Counsel in Uno-X Energi
AS. Saloume Djoudat is Head of Corporate at Bull & Co. She specializes in
corporate law including M&A and contract negotiations. Djoudat has managed
negotiations and acted as legal adviser in projects both in Norway and for inter-
national corporations. In light of her combination of academia and industry
experience, Djoudat has a strong ability to give legal advice from a business
perspective. Djoudat is a graduate of the Faculty of Law of the University
of Oslo. Saloume Djoudat has participated in 7 of 7 board meetings in 2021.
Sven Madsen (born 1964)
Member of the Board
Sven Madsen is Chief Financial Officer in Consolidated Holdings A/S. He
has extensive experience from working with corporate reporting, financing,
corporate management and M&A activities in companies such as Codan
Insurance, FLS Industries, SystemForum and Consolidated Holdings.
Madsen provides special competence within financial reporting, and is
a member of the Atea’s audit committee. He holds Board positions with
Consolidated Holdings A/S, Columbus A/S, X-Yachts A/S, core:workers
AB, Ejendomsaktieselskabet af 1920 A/S, MonTa Biosciences ApS and
DAN-Palletiser Finans A/S. Madsen holds a Graduate Diploma in Financial
and Management Accounting as well as an MSc in Business Economics and
Auditing. Sven Madsen has participated in 7 of 7 board meetings in 2021.
Sven Madsen is member of the audit committee.
Ib Kunøe (born 1943)
Chairman of the Board
Ib Kunøe has decades of experience as an entrepreneur and investor in the
IT sector. He brings strategic insight and practical experience from building
profitable businesses and from turnaround processes. Kunøe holds an HD
Graduate Diploma in Organisation and Management as well as a background
as a professional officer (major). He is the founder and owner of Consolidated
Holdings A/S and is the main shareholder and Chairman of the Board in a
broad variety of Danish owned companies such as Columbus A/S and X-Yachts
A/S. Ib Kunøe has participated in 7 of 7 board meetings in 2021.
Ib Kunøe is the Chairman of the nomination and remuneration committees.
Morten Jurs (born 1960)
Member of the Board
Morten Jurs currently holds a CEO position at SpinChip Diagnostics AS and
has extensive leadership experience from leading roles in both public and
private companies. His prior experiences include the role of partner in Pegasus
Industrier AS as well as CEO at Stamina Group AS between 2013-2016, CEO
at Pronova BioPharma ASA from 2009-2013 and CFO at Kitron ASA from
2001-2006. Jurs brings with him over 30 years’ experience within general
management, financial administration and strategic planning. He holds a
Master of Science/MBA in Business and Economics from the University
of Wyoming. Morten Jurs participated in 7 of 7 board meetings in 2021.
Morten Jurs is the Chairman of the audit committee.
Members of the Board
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Leiv Jarle Larsen (born 1973)
Member of the Board (employee elected)
Leiv Jarle Larsen joined Atea in 1998. Larsen has a broad experience in IT
infrastructure, both as an engineer and infrastructure architect. He has
worked both as an infrastructure consultant and presales engineer focusing
on hybrid platforms. He now holds the position as Strategic Advisor, helping
customers to develop and implement digital strategies. His main focus is to
use technology to find and harvest business values for the customers. Larsen
has studied media science and information science at the University of Bergen.
Leiv Jarle Larsen has participated in 7 of 7 board meetings since he joined
the board in April 2021.
Christian Våge (born 1973)
Member of the Board (employee elected)
Christian Våge is educated in Automation Engineering at Western Norway
University of Applied sciences. Våge has a broad experience of 15 years devel-
oping business systems for international enterprises and converting business
processes to code. He joined Atea in 2012 and has experience from various
positions within the company as Account Manager, Consultant Manager, RPA
Manager and Business Developer at Atea Insight. Våge currently holds the
position as Head of Automation in Analytics department in Atea AS (Norway).
Christian Våge has participated in 7 of 7 board meetings since he joined the
board in April 2021.
Marianne Urdahl (born 1966)
Member of the Board (employee elected)
Marianne Urdahl started her career in MBS Fjerndata AS in 1988, which
merged with Atea (Merkantildata) in 1996. Since then she has held various
positions within the company. Urdahl has more than 30 years of experience
in the IT business and holds currently the position as Account Manager for
the Justice Sector in Atea AS (Norway). Urdahl has graduated from high
school. Marianne Urdahl has participated in 7 of 7 board meetings in 2021.
Lisbeth Toftkær Kvan (born 1967)
Member of the Board
Lisbeth Toftkær Kvan is Branch and Commercial Manager in Ikano Bank
Norway. She is an experienced financial services executive and previ-
ously held the position as Country Manager in Ford Credit Norway and
has additionally been Member of Board and Control Committee as well
as Country Manager in GE Capital Solutions AS, Norway. She brings
experience within financial services and management to the Atea Board
and audit committee. Her previous roles include various positions within
the GE Capital organization in UK and Germany. Kvan holds an MSc in
International Business Administration from Copenhagen Business School.
Lisbeth Toftkær Kvan has participated in 7 of 7 board meetings in 2021.
Lisbeth Toftkær Kvan is member of the audit committee.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Atea’s objective is to provide a competitive
long-term return to shareholders, relative to
the underlying risk of the Company’s opera-
tions. The Company endeavours to achieve
this objective through a high dividend
payout and through capital appreciation on
the value of the underlying business.
The company's dividend policy is to distribute
approximately 70-100 percent of net profit
after tax to shareholders in the form of a
dividend. During 2021, the Company paid
dividends of NOK 5.00 per share to share-
holders in two equal instalments of NOK
2.50 during May and November. This repre-
sented a total dividend of NOK 555 million,
or 94 % of net profit after tax in the prior year.
In addition, the company repurchased its
own shares for an additional sum of NOK
215 million in 2021.
At the end of 2021, the Company’s net
financial position was cash positive of
NOK 822 million, compared with NOK
1,067 million at the end of 2020. The
Company has NOK 475 million in unsecured
long term loans outstanding, with a covenant
that its net debt must remain below 2.5
times pro forma EBITDA for the prior twelve
months (EBITDA includes any acquisitions
made during this period). Atea was NOK
4,972 million below this debt covenant at
the end of 2021.
Investor relations
Atea aims to increase investor awareness of
the Company through an open, transparent
and reliable information policy. In this
manner, the Company seeks also to promote
the liquidity of its shares and ensure that
its share price reflects the fair value of the
Company.
Presentations will be held for shareholders,
brokers and analysts in connection with
the quarterly and annual reporting dates.
Furthermore, Atea keeps the financial
markets informed of important develop-
ments through stock exchange and press
releases, and other market updates. Atea
holds regular meetings with investors and
analysts to enhance communication. More
information can be found on Atea’s investor
pages online at atea.com/investors.
Share capital and
shareholder structure
At 31 December 2021, the VPS registered
share capital in the company was NOK
112,130,609, divided into 112,130,609 shares
with a nominal value of NOK 1 per share.
Atea has one class of shares, with each share
carrying one vote. Ib Kunøe, Chairman of
the Board, with associated companies and
close associates, was the largest shareholder
controlling 27.0 percent of the shares at the
end of 2021. Otherwise, Atea ASA has a
diversified shareholder structure, with a total
of 8,573 shareholders at the end of the year.
Share performance
• At the end of 2021, Atea’s share price was
NOK 164.0 compared with NOK 121.2 end
of 2020.
•
During 2021, a dividend payout of NOK
5.00 per share was made to shareholders,
yielding a direct return of 4.1 percent
com pared to the share price at the end of
2020.
•
The total return on the Company’s shares
during 2021 was 39.4 percent, including
the dividend yield and share price increase
from NOK 121.2 to NOK 164.0.
•
The share’s highest close price during
2021 was NOK 178.8 on 1 September and
its lowest close price was NOK 114.8 on
11 January.
• At the end of 2021, the number of share-
holders was 8,573, up from 7,067 at the
start of the year.
Shareholder Information
Robert Giori joined Atea as Chief Finan-
experience in financial management for
public companies within the IT industry.
Prior to joining Atea, Robert spent over
five years as Chief Financial Officer of
-
Computing ASA and as Finance Director
for Dell’s operations in Norway. In addi-
tion, he has previously been a consultant
with McKinsey & Company.
University and a Bachelor degree from
Certified Management Accountant
Robert Giori
CFO of Atea ASA
Financial Calendar 2022
Atea ASA will publish quarterly interim accounts and provisional annual accounts on the
following dates:
Thursday, 28 April 2022
Thursday, 14 July 2022
Thursday, 20 October 2022
4th quarter 2022 and
Tuesday, 9 February 2023
Annual General Meeting:
Thursday, 28 April 2022
Visit atea.com/investors/ for
more shareholder information.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sett inn komma
manuelt som
tusenskille!
Kursutvikling
2021
Company Name Telephone
ABG Sundal Collier Jonas Bru Lien
Arctic Securities
Kristian Spetalen
Carnegie
Oliver Schüler Pisani
DnB
Christoffer Wang Bjørnsen
Kepler Cheuvreux
Lars Peder Kallar Devold
SB1
Petter Kongslie
Analysts following Atea:
Name Shares % of total
Systemintegration APS
Verdipapirfond Odin Norden
RBC Investor Services Trust
Verdipapirfond Odin Norge
Other
Total number of shares
Source: Verdipapirsentralen
Includes shares held by Ib Kunøe
Includes client nominee accounts
Main Shareholders
at 31 December 2021
Number of shares held
Number of
shareholders
Proportion of
share capital
Total
shares held
Ownership structure by number of shares:
Atea - Total return
More information can be found on Atea’s investor pages online at atea.com/investors/share/analysts.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Atea Group
Financial Statements
Content
Consolidated statement of Comprehensive Income 27
Consolidated statement of Financial Position 28
Consolidated statement of changes in Equity 29
Consolidated statement of Cash Flow 30
Note 1
Note 2
principles 31
Note 3
Note 4
applying the entity’s accounting policy 44
Note 5
Note 6
Note 7
Note 8
Note 9
Note 10
Note 11
Note 12
Note 13
Note 14
Note 15
Note 16
Note 17
shareholders 59
Note 18
current liabilities 61
Note 19
Note 20
Note 21
Note 22
Note 23
Note 24
Note 25
Note 26
Note 27
Note 28
Note 29
Note 30
Note 31
Note 32
Alternative Performance Measures 73
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Statement of Comprehensive Income | Statement of Financial Position | Statement of Changes in Equity | Statement of Cash Flow | Financial Notes | Auditor's report
Consolidated statement of Comprehensive Income
NOK in million Note
Revenue 41,316 39,503
Cost of sales
-32,869 -31,266
Gross profit 8,446 8,236
Payroll and related costs
-6,036 -5,904
Other operating costs
-656 -745
Restructuring costs
0 -37
Share based compensation
-94 -53
EBITDA 1,660 1,497
Depreciation and amortisation
-604 -638
Amortization related to acquisitions -10 -5
1,046 854
Financial income
14 12
Financial expenses
-118 -117
Net financial items -104 -105
Profit before tax 942 749
Tax
-179 -159
Profit for the period 763 590
Profit for the period attributable to:
Shareholders of Atea ASA 763 590
Earnings per share
6.86 5.37
6.70 5.32
Profit for the period 763 590
Currency translation differences -183 268
Items that may be reclassified subsequently to profit or loss -183 267
Other comprehensive income -183 267
Total comprehensive income for the period 580 857
Total comprehensive income for the period attributable to:
Shareholders of Atea ASA 580 857
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Notes indexNotes index
Statement of Comprehensive Income | Statement of Financial Position | Statement of Changes in Equity | Statement of Cash Flow | Financial Notes | Auditor's report
Consolidated statement of Financial Position
NOK in million Note
ASSETS
Property, plant and equipment
493 538
Right-of-use assets
1,200 1,288
Deferred tax assets
276 303
Goodwill
3,942 4,088
Other intangible assets
328 289
Investment in associated companies
0 17
Long-term subleasing receivables
53 83
Other long-term receivables
29 20
Non-current assets 6,321 6,626
Inventories
1,191 797
Trade receivables
5,189 5,818
Other receivables
1,916 1,606
Short-term subleasing receivables
71 126
Other financial assets 7 5
Cash and cash equivalents
1,353 1,605
Current assets 9,727 9,957
Total assets 16,048 16,584
EQUITY AND LIABILITIES
Share capital and premium
657 503
Other reserves 1,444 1,627
Retained earnings 1,429 1,254
Equity 3,530 3,384
Interest-bearing long-term liabilities
475 475
Long-term sublease liabilities
53 83
Long-term leasing liabilities
986 1,039
Other long-term liabilities
190 7
Deferred tax liabilities
141 165
Non-current liabilities 1,844 1,770
Trade payables
6,574 6,934
Interest-bearing current liabilities
8 7
Current sublease liabilities
71 126
Current leasing liabilities
284 310
Tax payable 136 133
Provisions
172 184
Other current liabilities
3,417 3,710
Other financial liabilities
12 28
Current liabilities 10,674 11,430
Total liabilities 12,518 13,200
Total equity and liabilities 16,048 16,584
Oslo, 17 March 2022
Ib Kunøe
Chairman of the Board
Morten Jurs
Sven Madsen
Marianne Urdahl
Christian Våge
Leiv Jarle Larsen
Lisbeth Toftkær Kvan
Steinar Sønsteby
CEO
Saloume Djoudat
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Notes indexNotes index
Statement of Comprehensive Income | Statement of Financial Position | Statement of Changes in Equity | Statement of Cash Flow | Financial Notes | Auditor's report
Consolidated statement of changes in Equity
Share capital
and premiums
Other
reserves
Retained
earnings
NOK in million
Share
capital
Share
premium
Other paid-in
capital
Currency
translation
differences
Option
programmes
Retained
earnings
Total
equity
Balances at 1 January 2020 110 354 879 480 286 965 3,075
Other comprehensive income - - - 267 - - 267
Profit for the period - - - - - 590 590
Issue of share capital 1 39 - - - - 40
Employee share-option schemes - - - - 46 - 46
Dividend - - - - - -550 -550
Changes related to own shares - - - - - -84 -84
Balance at 31 December 2020 110 393 879 748 332 922 3,384
Balances at 1 January 2021 110 393 879 748 332 922 3,384
Other comprehensive income - - - -183 - - -183
Profit for the period - - - - - 763 763
Issue of share capital 2 153 - - - - 155
Employee share-option schemes - - - - 49 - 49
Dividend - - - - - -555 -555
Changes related to own shares
0 - - - - -82 -81
Balance at 31 December 2021 111 546 879 564 381 1,048 3,530
See Note 17.
Own shares has been used to fulfill the Groups obligation related to the Share based compensation. The amount is net of tax. The tax effect is NOK 24 million in reduced tax.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Notes indexNotes index
Statement of Comprehensive Income | Statement of Financial Position | Statement of Changes in Equity | Statement of Cash Flow | Financial Notes | Auditor's report
Consolidated statement of Cash Flow
NOK in million Note
Profit before tax 942 749
Adjusted for:
Net interest expenses 84 85
Depreciation and amortisation
614 643
Share based compensation 49 46
Gains on sale of property, plant and equipment and intangible assets -44 -0
Change in inventories -446 70
Change in trade receivables 306 -1,033
Change in trade payables -40 386
Change in other accruals -136 762
Taxes paid -151 -236
Interest paid -92 -92
Interest received 12 10
Net cash flow from operational activities 1,096 1,388
Acquisition of subsidiaries/businesses
-1 -6
Purchase of property, plant and equipment and intangible assets
-328 -330
Sale of property, plant and equipment and intangible assets
56 9
Other investment activities - -2
Net cash flow from investment activities -273 -330
Payment from changes in treasury shares -106 -84
Proceeds from new shares issue 155 40
Dividend paid -555 -550
Proceeds from sublease 75 64
Payments of sublease liabilities
-75 -64
Payments of lease liabilities
-327 -340
Proceeds from raising loans
5,955 4,176
Repayment of loans
-5,991 -4,776
Cash flow from financing activities -870 -1,534
Net change in cash and cash equivalents for the year -47 -476
Cash and cash equivalents at the start of the year
1,605 1,769
Foreign exchange effect on cash held in a foreign currency -205 312
Cash and cash equivalents at the end of the year 1,353 1,605
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Notes indexNotes index
Statement of Comprehensive Income | Statement of Financial Position | Statement of Changes in Equity | Statement of Cash Flow | Financial Notes | Auditor's report
NOTE 1 – GENERAL INFORMATION
Norway, Denmark, Sweden, FinIand, Lithuania,
The principal activities for the Group’s various business areas are described in more details in Note
5 – Segment information.
31 December 2021, compared with 7,067 shareholders at the start of the year.
These consolidated accounts were approved by the Board of Directors on the 17 March 2022.
Note that there may be figures and percentages that do not always add up correctly due to rounding
differences.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
PRINCIPLES
2.0 Basis of the consolidated financial statements
The consolidated financial statements of Atea have been prepared in accordance with International
in which Atea ASA, directly or indirectly, has a controlling interest through ownership interests or
agreements. The consolidated financial statements have been prepared under the historical cost
basis and modified by any revaluation of assets and liabilities at fair value through profit or loss
according to the policies for the relevant areas. All the figures are presented in NOK and rounded to
the closest million. Notice is given of any exceptions.
Changes in accounting policy and disclosures
a) New and amended standards adopted by the Group
No standards adopted by the Group for the first time for the financial year beginning on or after
1 January 2021 have a material impact on the Group.
b) New standards, amendments and interpretations not yet adopted
Several new standards and amendments to standards and interpretations are effective for annual
periods beginning on or after 1 January 2022. Interpretation of one of these standards is expected to
have significant effect on the consolidated statements of the Group.
Expected new agenda decision not yet finalised or adopted
whether a reseller of standard software licenses should recognize software on a gross or net basis
under IFRS 15.
In its initial staff paper, the IASB IC did not provide a direct clarification on the topic, as they stated that
further guidance on the “control” criteria which determine whether revenue is recognized on a gross
or net basis under IFRS 15, as this criteria relates to the software resale industry. Both the staff paper
and the discussions within the IASB IC are supportive of revenue recognition on a net basis.
The IASB IC staff paper is still open for public comment with a deadline of 8th of February 2022 and
is not expected to be finalized before second quarter of 2022. Atea currently recognizes software
revenue on a gross basis and is waiting for a final guidance from the IASB before determining whether
to change its accounting policy.
If Atea were to change its accounting policy to recognize revenue from the sale of standard software
on a “net” basis, our current best estimate of the impact on Atea’s financial statements is:
•
• Gross profit, operating profit, and profit before / after taxes will be unchanged.
These estimates are preliminary and subject to further management review.
whether revenue from the resale of third-party services such as vendor support agreements should
be recognized on a net basis.
Any change to Atea’s accounting policy regarding the resale of third-party services will affect only the
presentation of revenue and cost of sales in its accounts. The change will have no impact on gross
profit, operating profit, or profit before/after taxes.
There are no other IFRSs or IFRIC Interpretations that are not yet effective that would be expected to
have a material impact on the Group.
2.2 Critical accounting estimates
The preparation of accounts in accordance with IFRS requires use of certain critical accounting
estimates. In addition, the application of the Atea’s accounting principles requires that the manage-
ment exercise judgment. Areas that contain a high degree of such discretionary assessments, or
a high degree of complexity, or areas where the assumptions and estimates are of significance to
the consolidated accounts are described separately. This applies to the valuation of goodwill (Note
13Note 10Note 2.1b
accounting estimates are included in the accounts for the period in which the change occurs. See
also Note 4 for more explanation.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
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Statement of Comprehensive Income | Statement of Financial Position | Statement of Changes in Equity | Statement of Cash Flow | Financial Notes | Auditor's report
2.3 Consolidation principles
2.3.1 Subsidiaries
controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement
with the entity and can affect those returns through its power over the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. They are deconsolidated
from the date that control ceases.
2.3.2 Business combinations
Atea uses the purchase method to account for the acquisition of subsidiaries. Consideration for the
acquisition of subsidiaries is measured at the fair value of the transferred assets, obligations assumed,
and equity instruments issued. The fair value of any assets or obligations that are contingent on the
agreement is also included in the consideration. Identifiable assets and liabilities are recognized at
fair value on the acquisition date. Expenses related to business combinations are recognized when
they are incurred. Correspondingly, if there were to be a discrepancy between the estimated fair value
based on the conditional settlement and fair value, and this cannot be attributed to new information
in the income statement.
2.3.3 Intercompany transactions
Intercompany transactions, balances, and unrealized gains on transactions between Group companies
are eliminated. The accounting principles for subsidiaries are amended as required in order to be
consistent with Atea’s accounting principles.
2.3.4 Associates
Associates are all entities over which the group has significant influence but not control, generally
are accounted for using the equity method of accounting. Under the equity method, the investment is
initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s
Share of the profit or loss of the investee after the date of acquisition.
2.4 Comparative figures
Comparative figures for previous years are changed in the event of significant changes in accounting
principles.
If changes are made in classifying and grouping accounting items, the comparative figures are changed
accordingly. This also applies when presenting discontinued operations on separate lines in the income
of subsidiaries.
2.5 Segment reporting
A segment is a portion of the business operations that delivers products or services that are subject
internal sales between the various segments are eliminated.
Atea’s business segment reporting is primarily by geography. A geographical business segment is
returns that are different from other geographical segments.
-
cal business segment as well as in separate shared service units that deliver products and services
internally to other geographical segments.
2.6 Foreign currency translation
2.6.1 Functional and presentation currencies
Items included in the financial statements of each of the Atea Group’s entities are measured primarily
using the currency of the primary economic environment in which the entity operates (the functional
the functional and presentation currency of Atea ASA.
2.6.2 Transactions and balance sheet items
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognized in the income statement.
2.6.3 Group companies
The results and financial position of all the Group entities (none of which has the currency of a
are translated into the presentation currency as follows:
of that balance sheet
rates during the financial year.
of equity
On consolidation, exchange differences arising from the translation of the net investment in foreign
entities, and of borrowings and other currency instruments are entered directly in OCI. When a foreign
business is sold, the associated exchange difference is entered directly in OCI through profit and loss
as part of the gain or loss on the sale.
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets
and liabilities of the foreign entity and translated at the closing rate.
2.7 Classification
Assets are classified as current when intended for sale or consumption in the normal operating cycle,
or held primarily for the purpose of being traded, or expected to be realized within twelve months, or
classified as cash or equivalents. All other assets are classified as non-current. Liabilities are classified
as current when expected to be settled in the normal operating cycle, or held primarily for the purpose
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of being traded, or due to be settled within twelve months, or there are no unconditional rights to defer
settlement for at least twelve months. All other liabilities shall be classified as non-current.
2.8 Property, plant and equipment
2.8.1 Recognition
expenses that are directly attributable to the acquisition of the items. Costs are included in the asset’s
carrying amount or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will pass to Atea and the cost of the item can be
measured reliably.
Depreciation is calculated using the straight-line method to allocate their cost over their estimated
useful lives as follows:
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance
sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the
asset’s carrying amount is greater than its estimated recoverable amount.
Repair and maintenance costs are charged to the income statement during the financial period in
which they are incurred.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount.
2.8.2 Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract
is or contains a lease if the contract conveys the right to control the use of an identified asset for a
period in exchange for consideration. To assess whether a contract conveys the right to control the
use of an identified asset, the Group assesses whether:
- the contract involves the use of an identified asset, this may be specified explicitly or implicitly and
should be physically distinct or represent substantially all the capacity of a physically distinct asset.
If the supplier has a substitution right, then the asset is not identified
- the Group has the right to obtain substantially all the economic benefits from use of the asset
thorough the period of use, and
- the Group has the right to direct the use of the asset.
2.8.2.2 As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date, plus any initial
direct costs incurred.
The right-of-use asset is subsequently depreciated using the straight-line method from the commence-
ment date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
In addition, the right-of-use asset is periodically reduced by impairment losses, if any.
The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted using the interest rate implicit in the lease, or if that rate cannot
be readily determined, the Groups incremental borrowing rate.
Short term leases and leases of low-value assets:
The Group has elected not to recognise the right-of-use assets and liabilities for short-term leases
of equipment and low value assets with an underlying value of USD 5,000 or less when they are new.
This is not related to Financial sub-leases.
periods presented that have significantly affected the lease liability and corresponding right-of-use assets.
More information about leasing activities is disclosed in Note 20.
2.8.2.3 As a lessor
When the Group is a lessor, it determines a lease commencement whether each lease is a finance
lease or an operation lease.
then the lease is a finance lease. If not, then it is an operating lease.
The Group recognises lease payments received under operating leases as income on a straight-line
basis over the lease term. The leasing income is mainly related to subleasing of premises and is not
material.
The classification of sublease agreements that the Group has entered is determined with the reference
to the right-of-use asset arising from the head lease not with the reference to the underlying asset,
Atea has classified these agreements as financial leases. The Group accounts for its interest in the
head lease and the sub-lease separately. The Subleasing receivables and liabilities are recognized in
When Atea is a lessor, Atea acts as a dealer and recognizes revenue and the Cost of sales when the
underlying assets are available for use by the customer.
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The “Device as a service” contracts (see 2.22.3.4
who obtains a right to use the devices. The contracts are often supported by financing solutions from
external finance institutions. Typically, the product elements in the contracts are financed by leasing
from external leasing companies. The leasing arrangement can either be a direct agreement between
the customer and the leasing company, or an agreement between Atea and the customer, supported
by a separate lease agreement between the leasing company and Atea. In the latter, Atea sells the
end of the lease term. This transaction is, for accounting purposes, classified as a financing transaction
Note 2.11
not a part of the agreement and does not recognize the lease.
2.9 Intangible assets
2.9.1 Recognition
Intangible assets are recognized on the balance sheet if it can be proven that there are probable
future economic benefits that can be attributed to the asset, which is owned by Atea and the cost of
the asset can be measured reliably.
Intangible assets are recognized at their cost price. Intangible assets with indefinite useful lives are not
amortized, but impairment losses are recognized if the recoverable amount is less than the cost price.
2.9.2 Business combinations and goodwill
Goodwill represents the excess of the cost of acquisition over the fair value of Atea’s share of the net
identifiable assets of the acquired business at the time of the acquisition. Goodwill is tested annually for
impairment and carried at cost less accumulated impairment losses. Goodwill is allocated to the relevant
cash-generating units for the purpose of impairment testing. Each of those cash-generating units
represents the lowest levels for which there are separately identifiable cash flows. Gains and losses
on the sale of business interests include the carrying amount of goodwill relating to the entity sold.
2.9.3 Other intangible assets
Computer software and rights
Acquired computer software licences are recognized on the balance sheet based on the costs incurred
to acquire and bring to use the specific software. These costs are amortized over their estimated useful
lives. Costs associated with maintaining computer software programs are recognized as an expense as
incurred. Costs that are directly associated with the development of identifiable and unique software
or system solutions controlled by the Group, which will probably generate economic benefits related
to the asset that will pass to Atea and can be measured reliably, are recognized as intangible assets.
Computer software costs/solutions and rights recognized on the balance sheet are amortized over
Contracts and customer relationships
In connection with business combinations, contracts and customer relationships are recorded at fair
value at the acquisition date. The amortization period for contracts and customer relationships is
Expenses related to research activities are recognized in the income statement as they are incurred.
2.10 Impairment of non-financial assets
Assets that are subject to amortization are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there
2.11 Financial instruments
Atea’s financial instruments include cash and cash equivalents, trade receivables, other receivables,
long term interest-bearing liabilities, current interest-bearing liabilities, long-term subleasing liabilities,
short-term subleasing liabilities, long-term leasing liabilities, current leasing liabilities, other financial
liabilities, other long-term liabilities and other current liabilities.
Fair value is defined to be the amount for which an asset could be exchanged, or a liability settled,
Atea classifies financial instruments in the category below. Details are disclosed in Note 24.
2.11.1 Amortized cost
The asset is measured at the amount recognized at initial recognition minus principal repayments, plus
or minus the cumulative amortization of any difference between that initial amount and the maturity
amount, and any loss allowance. Interest income is calculated using the effective interest method
and is recognized in profit and loss. Changes in fair value are recognized in profit and loss when the
asset is derecognized or reclassified.
Under FVTOCI, changes in fair value are not reported as part of Profit for the period. Instead, they are
reported as part of Comprehensive Income.
Under FVTPL, changes in fair value are reported as part of the Consolidated income statement for
the period.
2.11.4 Financial instruments related to “Device as a service” contracts
In relation to the “Device as a service” contracts, see 2.22 below, Atea enters into financial lease agree-
ments with the customer and obtains secured borrowing from the leasing company. In these cases,
the Group derecognize the lease receivables on the customer as the receivables, including all credit
2.12 Hedging
The Group has elected not to adopt to the hedge accounting regarding the approach to hedge
effective ness in IFRS 9.
Before a hedging transaction is carried out, the Group’s finance department assesses whether a
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Fair value hedges
Derivatives designated as hedging instruments are assessed at fair value and changes in fair value
are recognized in the income statement. Correspondingly, a change in the fair value of the hedged
Cash flow hedges
The hedging instruments are recognized in the statement of financial position and measured at fair
value through the income statement.
2.13 Inventories
Goods purchased for resale are valued at the lower of historical cost or net realizable value. The net
realizable value is the estimated sales price under ordinary operations less the cost of sales. The
The spare parts inventory is recognized at lower of cost and net realisable value.
2.14 Trade receivables
Trade receivables, including deferred revenue, are recognized at a discounted value. The interest
element is disregarded if it is insignificant. The group applies the IFRS 9 simplified approach to measur-
ing expected credit losses which uses a lifetime expected loss allowance for all trade receivables and
possibility of a credit loss occurs is very low.
The provisions represent the difference between the nominal and present value of cash flows that are
expected to be received. The change in the provisions for the period is accounted for in the income
2.14.1 Securitization
Atea to sell specified receivables of up to NOK 1,900 million. The second facility is an uncommitted
revolving credit facility of NOK 1,100 million secured by other receivables.
The Group consider that the business model for an accounting perspective for Trade receivables, is
a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets. The classification of the financial instrument, ‘Trade receivables’ is classified as Fair
2.11.2
Changes in the loss allowance related to credit loss and agio/disagio are reported as part of the
‘Consolidated income statement for the period’.
Any changes in fair value for Trade receivables which comes from other elements than credit loss and
agio/disagio is recognized in Other Comprehensive Income.
2.15 Cash and cash equivalents
restricted for use comprises cash and cash equivalents which are not available for general use by the
2.14
2.16 Share capital and premiums
Ordinary shares are classified as equity. Costs directly attributable to the issue of new shares are
shown in equity as a deduction, net of tax, from the proceeds. Costs directly attributable to the issue
of new shares related to an acquisition of a business are recognised directly on the Equity as part of
the purchase consideration.
Where any Group company purchases the company’s own shares, the consideration paid, including
shareholders until the shares are cancelled, reissued, or disposed of.
Where such shares are subsequently sold or reissued, any consideration received, net of any directly
attributable transaction costs and the related income tax effects, are included in equity attributable
to Atea’s shareholders.
2.17 Borrowings
Borrowings are recognized at fair value when the loan is disbursed, net of the transaction costs
incurred. Transaction costs are charged as an expense over the term of the loan (effective interest
settlement of the liability for at least 12 months after the balance sheet date. According to IFRS 9, the
financial liabilities are measured at amortised cost.
2.18 Income tax
Income tax consists of the tax payable and changes to deferred tax. Deferred tax is calculated on all
taxable temporary differences, except for:
the Group decides when the temporary differences are to be reversed and this is not expected to
Current and deferred tax are recognised in profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case the current and deferred
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tax are also recognised in other comprehensive income or directly in equity respectively. Where
current tax or deferred tax arises from the initial accounting for a business combination, the tax effect
is included in the accounting for the business combination.
Deferred tax assets are recognized when there is convincing evidence that Atea will have a sufficient
profit for tax purposes to utilize the tax assets. On each balance sheet date, Atea reviews its unrecorded
and unrecognized tax assets. Atea recognizes deferred tax assets on its balance sheet when the
conditions for recognition have been met. Correspondingly, Atea will reduce its deferred tax assets
if they can no longer be utilized.
Deferred tax and deferred tax assets are measured based on the current tax rates and laws applicable
to the companies in the Group where temporary differences have arisen.
Deferred tax and deferred tax assets are recognized at their nominal value and classified as a non-
current asset or a long-term liability on the balance sheet.
right-of-use asset and the lease liability. Deferred tax is recognised on an aggregate temporarily
difference basis.
2.19 Employee benefits
2.19.1 Pension obligations
Group companies operate various pension schemes. The schemes are generally funded through
payments to insurance companies.
For defined contribution plans, Atea pays contributions to publicly or privately administered pension
insurance plans on a mandatory, contractual, or voluntary basis. Atea has no further payment obliga-
tions once the contributions have been paid. The contributions are recognized as employee benefit
expense when they are due.
2.19.2 Share-based compensation
Employee options at Atea represent rights for employees to subscribe to shares in the company at a
at present.
The fair value of the employee services received in exchange for the allotment of options is recognized
as an expense. The total amount to be expensed over the vesting period is determined by reference to
the fair value of the options allotted. On each balance sheet date, the company revises its estimates
of the number of options that are expected to become exercisable. It recognizes the impact of the
revision of original estimates, if any, in the income statement, and a corresponding adjustment to equity
over the remaining vesting period. The proceeds received net of any directly attributable transaction
costs are credited to share capital and share premium when the options are exercised.
Own shares represent the shares of the parent company Atea ASA that are held in treasury.
Own shares are recorded at cost and deducted from equity. See Note 17 for more information.
2.19.3 Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or
whenever an employee accepts voluntary redundancy in exchange for these benefits. Atea recognizes
termination benefits when it is demonstrably committed to either: terminating the employment of
current employees according to a detailed formal plan without possibility of withdrawal; or providing
termination benefits because of an offer made to encourage voluntary redundancy.
2.19.4 Bonus plans
Atea recognizes a provision where contractually obliged or where there is a past practice that has
created a constructive obligation.
2.20 Provisions
Provisions are reviewed on each balance sheet date and their level reflects the best estimate of the
liability. When the effect of time is insignificant, the provisions will be equal to the size of the expense
necessary to be free of the liability. When the effect of time is significant, the provisions will be the
present value of future payments to cover the liability.
and which is not part of the day-to-day operations. Restructuring provisions are recognized when
the company has a detailed restructuring plan in which the business area is identified; the premises
and type of departments that will be affected, the number of employees who will be compensated
for dismissal, the type of expenses that will be incurred and when the restructuring is to begin have
been clarified; and the restructuring plan has been commenced or communicated to those who will
be affected by it. Provisions are not recognized for future operating losses.
2.21 Contingent liabilities and assets
Contingent liabilities are defined as:
resources
Contingent liabilities are not recognized in the annual financial statements. Significant contingent
liabilities are disclosed, except for contingent liabilities where the probability of the liability occurring
is remote. A contingent asset is not recognized in the annual financial statements but is disclosed if
there is a certain level of probability that a benefit will accrue to Atea.
For contingent consideration recognized as a liability regarding the acquisition of business, see Note 26.
2.22 Revenue recognition
Revenue comprises the fair value of the consideration for the sale of goods and services, net of value-
added tax, rebates, and discounts. Intercompany sales are eliminated. Revenues are not recognized
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unless the customer has accepted the delivery and collectability of the related receivables is reason-
ably assured.
2.22.1 Practical expedients
The Group has used following practical expedients:
•
The Group has not disclosed information about remaining performance obligations that have original
expected durations of one year or less.
• The Group does not disclose the amount of the transaction price allocated to the remaining perfor-
mance obligations and an explanation of when the Group expects to recognise that amount as
revenue for the year ended 31 December 2021.
•
The Group has recognized the incremental costs of obtaining contracts as an expense when incurred,
if the amortization period of the assets that the Group otherwise would have recognised is one
year or less.
• The Group does not disclose the effects of a significant financing component if the entity expects,
at contract inception, that the period between when the entity transfers a promised good or service
to a customer and when the customer pays for that good or service will be one year or less.
Revenue is recognized as follows for Atea’s different types of revenues:
2.22.2 Sale of products
The sale of products consists of hardware and software deliveries to an end customer. Atea recognizes
revenue on a gross basis on product sales in which Atea purchases a product from a vendor and resells
it to the end customer. In these contracts, Atea has primary responsibility for ensuring delivery of the
specified product to the end customer and has discretion in establishing the price for the product sale.
When reselling products, Atea recognizes revenue when a customer obtains control of the products.
In a hardware sale or traditional software license sale, the customer obtains control of the products
when the products are delivered. Normally, products are delivered directly from the distributor to the
customer, or from our central warehouse located in Sweden. The products delivered are at Atea’s own
In a Software-as-a-service agreement, software is provided over time to an end customer from a
Data Center managed or contracted by the software vendor. The customer will purchase and obtain
control of the software-as-a-service on a subscription or consumption basis. Revenue is therefore
recognized periodically over the life of the software as a service contract. The price may contain
both subscription and consumption-based offers from multiple vendors and a variety of offerings.
Subscription based offers have fixed price and are billed in different models, including monthly in
arrears, upfront, quarterly, and yearly. Billing cycles depend upon the type of subscription and the
agreement with vendors.
pay-as-you-go. The offers can be bundled into a single offer which may include application of different
pricing models simultaneously, e.g., customer purchases a fixed fee license and consumption-based
offer. As a result, such customer would receive a single invoice for fixed license fee and the consump-
tion amount. The transaction price is based on the desired profitability level, competition within the
term, unless terminated by either party. The customer contracts are usually entered for the initial term
of 1-year, however, after the end of the initial term, the contracts are renewed for additional 1-year
term, by providing a 30-days written notice to the other party. Nevertheless, if the subscriptions are
not migrated to another provider, the contracts and corresponding billing relationship remain in force
until such subscriptions are transferred to another provider.
Either party has the right to terminate the agreement by providing a 30 days’ prior written notice of
termination to the other party.
Whenever the sub-contractors are used to deliver any part of the service, sub-contractors are bound
by the same or similar terms of termination. The rights and responsibilities pertaining to the Software
as a service agreement with the customers, are corresponding with those of the agreements with
Sub-contractors. If the customer can terminate the subscription within 30 days, the same subscription
termination terms will apply to the agreement between Atea and the vendor providing such subscription.
Atea recognizes commission revenue on product sales in which Atea arranges for a product to be
sold directly from the vendor to the end customer, with Atea earning a sales agent fee from the vendor
for arranging the sale of the product. In these contracts, Atea does not have primary responsibility
for ensuring delivery of the specified product to the end customer and does not have discretion in
establishing the price for the product sale. The revenue is recognized when the commission has been
earned from the vendor, typically after the vendor has delivered the product to the end customer.
Atea is a dealer and a service provider. Atea does not produce any software or hardware itself. If the
Atea does not have any obligations for returns, refunds or similar of sold products.
Atea do not have any contracts with the customers where the prices vary based on the contract terms.
2.22.3 Sale of services
Consulting service consists of services from Atea consultants provided on an hourly basis. Revenue is
recognised when the customer can obtain the benefits from the service, and simultaneously receives
and consumes the benefits. A customer obtains benefit of a service when the benefits from the service
meets the expectations specified in the contract with the customer.
2.22.3.2 Fixed price projects
Revenue is recognised when the customer can obtain the benefits from the fixed price projects. Fixed
price projects include both fixed price consulting projects and combined consulting and product
deliveries.
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In general, income is recognised when the project is finalised according to the contract and the
customer can obtain the benefits from the project. Revenue may be recognised over time when one
of the following criteria are met:
The percentage of completion method is used when revenue is recognised over time. The degree of
completion is normally based on accrued cost for a project. This method is used, because normally
it is reasonably possible to estimate the stages of project completion on an ongoing basis, based on
the remaining costs to complete a project.
Earned revenue for the period is earned revenue at the balance sheet date, less earned revenue in
prior periods. If the project is ongoing, income will be recognized continuously in accordance with
the agreement, based on actual deliveries.
2.22.3.3 Service contracts
Revenue is recognised when the customer can obtain the benefits from the service contracts.
Service contracts include time-limited service & support contracts, or contracts running until termination
by either party. Such revenues are normally allocated linearly over the length of the contracts. Costs
2.22.3.4 Multiple element arrangements or “Device as a Service”
“Device-as-a-Service” is a commercial model in which organizations procure IT solutions, including
deliveries of equipment are provided with a service contract. Atea is then responsible for delivering
the IT solution and maintaining an agreed service level.
When the Group delivers multiple services and/or equipment as part of one contract or arrangement,
the consideration is allocated to the separate identifiable performance obligations. Our assessment
shows that the combination of products and services can be unbundled and are not considered as
one performance obligation. The timing of the revenue streams in the Multiple element arrangements
or “Device-as-a-Service” can be different. Typically, revenue from sales of the products is recognised
immediately when the customer obtains control of the product, while the service element in the
contract is recognised over time. Revenue is only recognized when control of the promised good or
service is transferred to the customer.
The stand-alone selling prices can be identified and allocated to the different elements in the contracts.
These contracts are often supported by financing solutions from external finance institutions. Typically,
the product elements in the contracts are financed by leasing from external leasing companies.
When the contracts contain a lease, the Group separates the elements of the contract that are in
scope of IFRS 16 and recognize these accordingly, see 2.8.2 above for further detail on leases. The
remaining elements of the contracts are allocated to each performance obligation in scope of IFRS
15 and recognized as revenue accordingly.
2.22.3.5 Data Center outsourcing agreements
The contracts involve the day-to-day management responsibility for operating server or host plat-
forms, including distributed servers and storage. Such revenues are normally allocated linearly over
the length of the contracts. The duration of the contracts are typically 3-years with a possibility for
renewal. The customer typically needs to pay a cancellation fee if the contract is cancelled before
the end of the contract period.
2.22.4 Payment terms and finance components
The typical payment terms with the customers vary between 14 and 60 days. The Group does not have
any significant customer contracts with finance components. When the customer contract includes
a finance component, this is normally financed by an external party.
2.22.5 Revenue from customer contract with duration more than one year after the balance date
Most of the contracts with customers are with a duration less than one-year. Data Center outsourcing
agreements in 2.22.3.5 above is an exception. See more details in Note 6.
2.23 Cost of sales
Atea aggregates expenses within the income statement according to their nature. Costs of sales
include products and services bought from suppliers and resold to customers.
Costs of sales include all direct expenses for goods and services directly connected to the sales,
including freight. Direct costs related to services include leasing and outsourcing.
2.24 Government grants
the governments is related to compensation paid directly from the Government to the Group for
employees on furlough. Government grants are reported as a deduction of payroll and related costs
in the Consolidated statement of Comprehensive income. See more details in Note 31.
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NOTE 3 – FINANCIAL RISK AND CAPITAL MANAGEMENT
3.1 Financial risk factors
effects on the group’s financial results.
investment of excess liquidity. The Group does not enter into or trade financial instruments, including
derivative financial instruments, for speculative purposes.
3.1.1 Market risk
3.1.2 Foreign exchange risk
-
recognised assets and liabilities and net investments in foreign operations.
are denominated in a currency that is not the entity’s functional currency. Atea main foreign currency
exposure is from purchases of goods denominated in foreign currency. Parent company Atea ASA is
period between accepted order and payment to supplier, or from approving dividends and dividends
assets or liabilities in foreign currency.
Foreign exchange rates sensitivity analysis can be found at the end of this note.
foreign currencies.
Exchange rate exposures are managed within approved policy parameters utilising forward foreign
exchange contracts. Atea does not use hedge accounting principles, and all fair value changes of
The following tables detail the foreign currency forward contracts outstanding at the end of the
reporting period, as well as information regarding their related hedged items.
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The table below illustrates the outstanding forward currency contracts as of 31 December 2021 and 31 December 2020.
Forward currency contracts
Average
exchange rate
Contract
value
Contract
value
Fair
value
Average
exchange rate
Contract
value
Contract
value
Fair
value
NOK
Local currency
million
NOK in
million
NOK in
million NOK
Local currency
million
NOK in
million
NOK in
million
Buy currency NOK
Less than 3 months
Sell currency NOK
Less than 3 months
3 to 6 months
Buy currency SEK
Less than 3 months
Buy currency DKK
Less than 3 months
Sell currency DKK
Less than 3 months
3 to 6 months
Buy currency EUR
Less than 3 months
3 to 6 months
Sell currency EUR
Less than 3 months
Buy currency USD
Less than 3 months
3 to 6 months
Sell currency USD
Less than 3 months
3 to 6 months
The company has investments in foreign subsidiaries, whose net assets are exposed to foreign currency
3.1.3 Interest rate risk management
The interest on deposits and loans has a maturity of less than 12 months. As the Group has no significant
interest-bearing assets, the Group’s income and operating cash flows are substantially independent
Interest rates sensitivity analysis can be found at the end of this note.
3.1.4 Credit risk management
Atea has for years had modest losses on trade debtors. New customers must be approved before they
are granted credit. The responsibility for granting credit is decentralised to each operating unit. The
A major part of the customers are within the public sector.
Provisions for losses are accounted for when there are indicators of expected losses. These indicators
include;
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In addition, provision for credit losses are accounted for based on flat-rate valuation adjustments
matrix is supported by historical credit loss experience of trade receivables, adjusted as appropriate
to reflect current conditions and estimates of future economic conditions.
The flat-rate reduction in value for Atea Group is following:
Flat rate valuation adjustment:
receivable is sold. See Note 19 for more information.
3.1.5 Liquidity risk management
Group’s remaining contractual maturity for its non-derivative financial liabilities is disclosed in Note 19.
Details of additional undrawn facilities that the Group has at its disposal to further reduce liquidity
Note 22.
3.2 Capital management
The Group manages its capital to secure the ongoing operations of the companies in the Group and to
maximise the shareholders’ return. This is accomplished through a healthy balance between liabilities,
equity and earnings. Atea assesses its operational gearing (net interest-bearing liabilities/operating
The Group’s target is to have an adjusted equity ratio
Atea's adjusted equity ratio is defined as its equity as a percentage of its adjusted total assets. See
APM for more information.
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Interest rate risk Foreign currency risk
NOK in million Amount
Effect on
profit/loss
Other effects
on equity
Effect on
profit/loss
Other effects
on equity Amount
Effect on
profit/loss
Other effects
on equity
Effect on
profit/loss
Other effects
on equity
Financial assets
- - - -
- - - -
- - - -
- - - -
- - - -
Effect on financial assets before tax - - - -
- - - -
Effect on financial assets after tax - - - -
Financial liability items
- -
- - - - -
- -
- - - - -
Effect on financial liabilities before tax - -
- -
Effect on financial assets after tax - -
Total increase/reduction - -
Basis points.
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Interest rate risk Foreign currency risk
NOK in million Amount
Effect on
profit/loss
Other effects
on equity
Effect on
profit/loss
Other effects
on equity Amount
Effect on
profit/loss
Other effects
on equity
Effect on
profit/loss
Other effects
on equity
Financial assets
- - - -
- - - -
- - - -
- - - -
- - - -
Effect on financial assets before tax - - - -
- - - -
Effect on financial assets after tax - - - -
Financial liability items
- -
- - - - -
- -
- - - - -
Effect on financial liabilities before tax - -
- -
Effect on financial assets after tax - -
Total increase/reduction - -
Basis points.
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NOTE 4 – CRITICAL ESTIMATES AND JUDGMENTS IN
APPLYING THE ENTITY’S ACCOUNTING POLICY
-
cant effects on the amounts recognized in the financial statements. Estimates and judgements are
continually evaluated and are based on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the circumstances. Actual results can differ
from estimates.
carrying amounts of assets and liabilities within the next financial year are specified below. Important
and critical judgements in applying the entity’s accounting policies are also specified.
Impairment of goodwill
adjustment to the carrying amounts of assets and liabilities within the next financial year are related
Goodwill has an indefinite useful life and is tested annually for impairment. Assets that are subject to
amortization are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable.
Sensitivity analysis indicates that even with the use of conservative estimates with regard to future
amounts. See more information in Note 13.
Recoverable amounts of cash-generating units are determined based on judgements of fair values
less costs to sell or value-in-use estimates.
Deferred tax
The recognition of deferred tax assets and liabilities requires that judgement being exercised. Atea
recognizes deferred tax assets on its balance sheet when it has been deemed adequately probable
that the operations in the individual country will generate a taxable profit that the tax loss carry
forward can be used to offset.
related to the tax losses carry forward in Norway. Atea consider the future taxable profit as probable,
as tax loss carry forward is expected to be utilized within 4 years.
Revenue recognition
The Group recognizes revenue from many different product groups and services. Different customer
contracts contain varying terms and conditions and may include bundles of products and services.
“Device as a Service” is a commercial model in which organizations procure IT solutions from a service
solution and maintaining an agreed service level. Atea is currently expanding its “Device as a Service”
including financing solutions.
The contracts require manual consideration and judgement of which accounting policy that is relevant
for each contract. This consideration impacts the timing of revenue recognition.
-
propriate accounting policy is selected.
manual process is especially relevant for transactions recorded close to year-end.
Accounting provisions
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NOTE 5 – SEGMENT INFORMATION
organized within these geographical areas. The performance of these geographical areas are evaluated on a regular basis by Atea’s Executive team, consisting of among others the Managing Directors of each
geographical segment.
These costs are reported separately as Group Shared Service and Group cost.
Transfer prices between operating segments are on arm’s length basis in a manner similar to transactions with third parties.
NOK in million Norway Sweden Denmark Finland The Baltics
Shared
services
Group cost /
eliminations Total
Revenue
Cost of sales and operating expenses
Depreciation and amortisation
Net financial items
Profit before tax
Number of full-time employees at 31 December
NOK in million Norway Sweden Denmark Finland The Baltics
Shared
services
Group cost /
eliminations Total
Revenue
Cost of sales and operating expenses
Depreciation and amortisation
Net financial items
Profit before tax
Number of full-time employees at 31 December
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NOK in million Norway Sweden Denmark Finland The Baltics
Shared
services
Group cost /
eliminations Total
Assets
Liabilities
Investments to PPE and Intangible assets -
NOK in million Norway Sweden Denmark Finland The Baltics
Shared
services
Group cost /
eliminations Total
Assets
Liabilities
Investments to PPE and Intangible assets -
Operating revenues by category:
NOK in million
1. Product revenue
2. Services revenue
3. Total revenue
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NOTE 6 – REVENUE RECOGNITION AND CONTRACT BALANCES
In the following table, the major revenue lines are disaggregated by geographical areas as disclosed
in our segment information (Note 5
Figures are in local currency and do not include eliminations, except for Atea Group.
1. Product revenue
1.1 Hardware
Local currency in million
Norway NOK
Sweden SEK
DKK
Finland EUR
The Baltics EUR
Group Shared Services
NOK
Atea Group NOK
1.2 Software
Local currency in million
Norway NOK
Sweden SEK
DKK
Finland EUR
The Baltics EUR
Group Shared Services
NOK
Atea Group NOK
Revenue from Group Shared Services are eliminated on Group level.
2. Services revenue
Local currency in million
Norway NOK
Sweden SEK
DKK
Finland EUR
The Baltics EUR
Group Shared Services
NOK
Atea Group NOK
3. Total revenue
Local currency in million
Norway NOK
Sweden SEK
DKK
Finland EUR
The Baltics EUR
Group Shared Services
NOK
Atea Group NOK
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Contract balances:
The following table provides information about receivables, contract assets and contract liabilities
from contracts with customers.
NOK in million
Receivables, wich are inculded in Trade receivables
Contract assets
Contract liabilities
See Note 16 for an ageing analysis of receivables and description of the changes in receivables.
The contract assets primarily relates to revenues accrued, but not invoiced. Contract assets are recognised
for performance obligations satisfied over time, mainly from services and projects where progress is
measured over time.
The contract assets are transferred to Trade receivables when the rights to receive payment become
unconditional.
The contract assets are assessed for impairment in accordance with IFRS 9.
The contract liabilities primarily consists of advance considerations received from customers.
See Note 18.
Changes in the contract assets and the contract liabilities
balances during the period are as follows:
NOK in million
Contract
assets
Contract
liabilities
At 1 January 2021
Recognised during the year:
Revenue recognised that was included in the contract
liability balance at the beginning of the period -
Invoiced in advance -
Transfers from contract assets recognized at
the beginning of the period to receivables
Increases as a result of changes in
the measure of progress
Currency translation differences
At 31 December 2021
NOK in million
Contract
assets
Contract
liabilities
At 1 January 2020
Recognised during the year:
Revenue recognised that was included in the contract
liability balance at the beginning of the period -
Invoiced in advance -
Transfers from contract assets recognized at
the beginning of the period to receivables -
Increases as a result of changes in
the measure of progress
Currency translation differences
At 31 December 2020
Remaining performance obligations at year-end
The remaining performance obligations expected to be recognised in more than one year after the
This is mainly related to Data Center outsourcing agreements that normally can not be cancelled
before the contract period of 3-years, without a significant penalty.
All the other remaining performance obligations are expected to be recognised within one year.
See Note 2.22.5.
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NOTE 7 – PAYROLL AND RELATED COSTS
NOK in million
Wages and salaries to employees
Total social security costs
Pension costs
Other personnel costs
Total Payroll and related costs
Average number of full time employees
Compensation to Executive Directors
NOK in million
Fixed salary
One-year variable salary
Multi-year variable salary
Pension costs
Extraordinary items
Total remuneration
employee during period.
Extraordinary items include severance payments.
Wages and remuneration to the CEO, CFO, Board of Directors and the employees’ share option plans are
described in a separate Remuneration report published at atea.com.
NOTE 8 – OTHER OPERATING COSTS
NOK in million
Car and travel costs
Communication and IT costs
Premises costs
Bad debts
Other income
Other costs
Total other operating costs
Audit fees
The table below shows Deloitte’s total charges for auditing and other services. All amounts are exclusive
of VAT.
NOK in million
Auditor's fees
Assurance services
Tax advisory services
Other non-audit services -
Total
Remuneration to the Board of Directors of Atea ASA
Fees to the Chairman of the Board amounted to NOK 300,000, fees to the employee representatives
amounted to NOK 100,000 each and the rest of the Board of Directors received a fee of NOK 150,000
each.
NOK 300,000 was paid in fees to the Audit Committee of Atea ASA in 2021, or NOK 100,000 to each
of the three members. This is the same as in 2020.
Sale of Atea Mobile business in Norway
The amount includes a gain of NOK 32 million related to sale of Atea Mobile business in Norway.
See Note 14.
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NOTE 9 – NET FINANCIAL ITEMS
NOK in million
Interest income
Interest income, subleasing
Other financial income
Total financial income
Interest costs on loans
Interest costs on leases
Interest expenses, subleasing
Foreign exchange effects
Other financial expenses
Total financial expenses
Total net financial items
Foreign exchange effects included in operating loss total NOK 15 million in 2021 (operating loss of
NOTE 10 – TAXES
Income tax recognized in profit or loss:
NOK in million
Current tax
Norway - -
Other countries
Deferred tax
Origination and reversal of temporary differences
Net losses utilised
Change in deferred tax assets due to tax
losses previously unrecognized
Total income tax expenses
The income tax expense for the year can be reconciled to the accounting profit as follows:
NOK in million
Profit before tax
Effect of income non-taxable and expenses non-deductible
Effect of previously unrecognized and unused tax losses and deduct-
able temporary differences now recognized as deferred tax assets -
Effect of different tax rates of subsidiaries operating in other
jurisdictions
Effect of deferred tax balances due to the change in income tax rates
-
Effect of deferred tax changes recognised in other comprehensive
income or directly in equity
Total
Adjustments recognised in the current year in relation to the
current tax of prior years
Income tax expense recognised in profit or loss
Effective tax rate
Income tax recognised directly in equity
NOK in million
Deferred tax
Relating to forward contracts -
Relating to option costs -
Total income tax expenses recognized directly in equity
Deferred tax balances are presented in the statement of financial position as follows:
NOK in million
Deferred tax assets related to carryforward losses
Deferred tax assets related to temporary differences
Deferred tax liabilities
Net deferred tax assets (liabilities)
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Deferred tax assets (liabilities)
NOK in million
Book value
Recognized
in P/L
Recognized
in equity
Business
disposals
Currency
translation
differences
Book value
Temporary differences
Property, plant and equipment -
Intangible assets
- -
Inventories -
Trade and other receivables -
Provisions and accruals - -
Capital gain/loss accounts - -
Financial leases - -
Other financial liabilities -
Other differences -
Total
Unused tax losses and credits
Tax loss carryforward - -
Other temporary differences not recognized on the statement of financial position - - -
Deferred tax assets recognized on the statement of financial position - -
Net deferred tax assets recognized on the statement of financial position
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Deferred tax assets (liabilities)
NOK in million
Book value
Recognized
in P/L
Recognized
in equity
Business
disposals
Currency
translation
differences
Book value
Temporary differences
Property, plant and equipment - -
Intangible assets
- -
Inventories - -
Trade and other receivables - -
Provisions and accruals - -
Capital gain/loss accounts - -
Financial leases - -
Other financial liabilities -
Other differences -
Total
Unused tax losses and credits
Tax loss carryforward - -
Other temporary differences not recognized on the statement of financial position - - -
Deferred tax assets recognized on the statement of financial position - -
Net deferred tax assets recognized on the statement of financial position
The Group's tax losses expires as follows:
NOK in million
No expiration
deadline
Total at
Norway
Finland
The Baltic
AppXite
Total
Atea recognises deferred tax assets on the statement of financial position when it has been deemed adequately probable that the operations in the indvidual country will generate a taxable profit that the tax loss carry
Non taxable income and non deductible expenses pursuant to the countries income tax laws.
Primarily related to depreciable excess values from business combinations.
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NOTE 11 – EARNINGS PER SHARE
Basic
Basic earnings per share is calculated by dividing the profit attributable to shareholders of the Company
by the weighted average number of ordinary shares in issue during the year.
NOK in million
Profit for the period
Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares. The Company’s dilutive
potential ordinary shares are share options issued. A calculation is done to determine the number of
outstanding share options. The number of shares calculated as above is compared with the number
of shares that would have been issued assuming the exercise of the share options.
NOK in million
Profit for the period
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NOTE 12 – PROPERTY, PLANT AND EQUIPMENT
NOK in million
Buildings and
property
Vehicles
and office
machines
Furniture
and fittings
Computer
equipment Total
Acquisition cost
1 January 2020
Changes from prior years -
Additions
Disposals
-
Currency translation effects
31 December 2020
Changes from prior years
Additions
Disposals
Currency translation effects
31 December 2021
Accumulated depreciation
1 January 2020
Changes from prior years -
Depreciation
Disposals
-
Currency translation effects
31 December 2020
Changes from prior years -
Depreciation
Disposals
Currency translation effects
31 December 2021
Acquisition cost
Accumulated depreciation and write downs
Book value at 31 December 2020
Acquisition cost
Accumulated depreciation and write downs
Book value at 31 December 2021
Gain/loss on the disposal of property, plant and equipment accounted for insignificant amounts in 2021 and 2020.
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NOTE 13 – GOODWILL AND INTANGIBLE ASSETS
NOK in million Goodwill
Contracts
and
customer
relationships
Computer
software
and rights
Total other
intangible
assets
Acquisitions
1 January 2020
Changes from prior years -
Additions
Ordinary additions - -
Business combinations - -
Disposals
-
Currency translation effects
31 December 2020
Changes from prior years
Additions
Ordinary additions -
Business combinations - - - -
Disposals
- -
Currency translation effects
31 December 2021
Accumulated amortisation and write-downs
1 January 2020 -
Changes from prior years - -
Amortisation
Disposals
- -
Currency translation effects -
31 December 2020 -
Changes from prior years - -
Amortisation
Disposals
- -
Currency translation effects -
31 December 2021 -
NOK in million Goodwill
Contracts
and
customer
relationships
Computer
software
and rights
Total other
intangible
assets
Acquisition cost
Accumulated amortisation and write-downs
Book value at 31 December 2020
Acquisition cost
Accumulated amortisation and write-downs
Book value at 31 December 2021
Gain/loss on the disposal of intangible assets accounted for insignificant amounts in 2020 and 2021.
Allocations of goodwill
NOK in million
Norway
Sweden
Finland
The Baltics
The Group Shared Services
Total
The Group does not have any significant research expenses.
Development costs related to internal systems are capitalised in the balance sheet with NOK 52 million
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Goodwill impairment test
Goodwill and other assets are allocated to the Group’s cash-generating units. Atea allocates goodwill
Goodwill has an indefinite useful life and is not amortised, but impairment losses are recognised if the
Recoverable amounts for cash-generating units are estimated based on calculating the asset’s value
in use. Cash flow forecasts are used based on the budget for revenues, product/service mix, profit
margins, costs and capital employment. Revenue growth for 2022 is based on budget approved by
based
that have not been incorporated in the cash flow estimates. The discount rate calculation is based on
the specific circumstances of the Group and its operating segments and is derived from its Weighted
on a 10-year government bond rate in the respective countries, adjusted for weighted average interest
equity is derived from the expected return on investment by the Group’s investors. The cost of debt
is incorporated by applying beta factor. Adjustments to the discount rate are made to factor in the
specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
The Group has assessed whether expected useful lives of non-current assets and estimated residual
Sensitivity analysis:
In addition to impairment testing using the base case assumptions above, few separate sensitivity
analyses were performed for each cash-generating units:
- a discount rate analysis where the discount rate was increased by 3 % due to adjusted estimates
not cause the aggregate carrying amount to exceed the aggregate recoverable amount of any of the
cash generating units.
:
Norway
Sweden
Finland
The Baltics
At 30 September 2021.
Volume-weighted average for Estonia, Latvia and Lithuania.
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NOTE 14 – INVESTMENTS IN ASSOCIATED COMPANIES
Note 8.
Atea entered multiple agreements with eRate AS in 2017 to support the launch of its Atea Mobile
business in Norway. The agreements included a minority investment by Atea Norway in eRate AS and
a related service agreement through which eRate provides Atea Norway with a platform for managing
the Atea Mobile offering.
eRate AS was fully acquired by an outside company in December 2021. The transaction resulted in
other income of NOK 32 million in Atea Norway. The new owner will continue to provide support for
minority investments in associated companies following the transaction.
NOTE 15 – INVENTORIES
NOK in million
Cost of inventories
Accumulated provisions for write-downs
Book value at 31 December
Provision for write-downs at 1 January
Additional provisions
Used provisions
Foreign exchange effects on inventory write-downs
Provision for write-downs at 31 December
Write-down of inventories recognized as an
expense and included in Cost of sales
Inventories recognized as an expense during the period
Inventory of spare parts are written-down over the average length of the service contracts.
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NOTE 16 – TRADE AND OTHER RECEIVABLES
NOK in million
Trade receivables
Provisions for bad debts
Net book value of trade receivables
Prepaid expenses
Accrued revenue (Note 6
Other current receivables
Other receivables
Total trade and other receivables
Other long-term receivables
Total other long-term receivables
Provisions for bad debts at 1 January
Additional provisions
Used provisions
Amount collected during the year
Foreign exchange effect on bad debts
Provisions for bad debts at 31 December
number of customers spread across several countries. Maximum exposure to trade receivables corre-
balance of accounts receivable which may be sold at any time during the term of contract is NOK
1,900 million. See Note 19 for more information.
As of 31 December 2021 the Group can borrow up to NOK 1,100 million through a securitization facility
secured by receivables. Trade receivables up to this limit are pledged as security for revolving credit
facility. See Note 19 and Note 28 for additional information.
Note 8 for more information.
See otherwise Note 3.1.4
Maturity analysis for trade receivables not due
NOK in million
Non-due < 30
Non-due > 91
Total
Maturity analysis for trade receivables due
NOK in million
Maturity < 30 days
Maturity > 91 days
Total
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NOTE 17 – SHARE CAPITAL AND PREMIUM, OPTIONS AND SHAREHOLDERS
Number of shares Share capital
Issued
Treasury
shares Issued
Treasury
shares
Share
premium
Total paid-in
equity
At 1 January 2020
Issue of share capital
-
Changes related to own shares
- -
At 31 December 2020
At 1 January 2021
Issue of share capital
Changes related to own shares
At 31 December 2021
Shares and share capital
In 2021 the nominal value of shares was NOK 1 per share. All the shares issued by the company are
fully paid.
Own shares
Share options
Share options have been allotted to the management and selected employees. Each share option
allows for the subscription of one share in Atea ASA. The fair value of the options is calculated when
they are allotted and expensed over the vesting period. The maximum term of the options granted
is normally 4 years.
A cost of NOK 49 million has been charged as an expense in the income statement in 2021 relating to
See Note 7
The company has traditionally issued new shares to meet the contractual obligations of its share
options, based on authorizations to increase the share capital granted by the General Meeting to the
Board of Directors. In 2021 the company also used treasury shares to meet the contractual obligations
of its share options. The company also retains the right to settle share options in cash based on the
Number of
options
Weighted average
exercise price
Number of
options
Weighted average
exercise price
Outstanding at 1 Jan
Granted
Exercised
Lapsed/terminated
Expired - -
Outstanding at 31 Dec
Vested options
conditions for exercising the different share option programmes are set for each programme on an
individual basis.
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Terms of the outstanding options are as follows:
Outstanding options Vested options
Exercise price
Outstanding
options at
Weighted
average
contractual
life
Weighted
average
exercise price
Vested
options at
Weighted
average
exercise price
- -
- - - - -
- - - - -
- - - - -
- -
Total
Weighted average volatility
The expected volatility was determined based on historical volatility with the same lifetime as the
valuation.
Shares %
Systemintegration APS
Verdipapirfond Odin Norden
RBC Investor Services Trust
Verdipapirfond Odin Norge
Other
Total number of shares
Number of shareholders:
Percentage of foreign shareholders:
Source: Verdipapirsentralen.
Includes shares owned by Ib Kunøe.
Includes client nominee accounts.
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NOTE 18 – TRADE PAYABLES AND OTHER
CURRENT LIABILITIES
NOK in million
Trade payables
Public fees payable
Prepayments from customers (Contract liabilities, Note 6
Accrued holiday payments
Deferred income (Contract liabilities, Note 6
Other current liabilities
Total other current liabilities
Total trade payables and other current liabilities
Maturity analysis trade payable:
NOK in million
Due < 30
Due > 91
Total
NOTE 19 – BORROWINGS
NOK in million
Long-term borrowings
EIB loan
Other -
Long-term interest-bearing borrowings
Current borrowings
Other
Current interest-bearing borrowings
Total borrowings excluding leasing
Securitization
-
contract consists of 2 facilities. The first facility enables Atea to sell specified receivables up to a
facility expires in December 2024. The second facility is an uncommitted revolving credit facility of
NOK 1,100 million secured by other receivables. Atea has not utilised this second facility as of 31
December 2021 and 31 December 2020.
EIB loan
May 2018. The loan is unsecured, and will be repaid in a single installment following a term of five years.
Overdraft facility
2020. Amounts drawn on this facility are cash and cash equivalents. The facility has standard terms
and conditions for this type of financing.
Money market line
this facility had been utilised at 31 December 2021 and 31 December 2020. Amounts drawn on this
facility are classified as short-term debt. The facility has standard terms and conditions for this type
of financing.
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Financial covenant
The financial covenant which applies to the above EIB loan facility and the Nordea facilities is a
Leverage Ratio for the Group of 2.5x. Leverage Ratio means the ratio of net interest-bearing Debt to
EBITDA. EBITDA in this calculation is pro forma, i.e. adjusted for acquisition of businesses, and sale
of existing business units in the Group. The financial covenant is measured end of each quarter. The
Group is compliant with the covenant at the balance date (see Note 22 and Alternative Performance
See Note 28 for disclosure of asset pledged under financing contracts.
The Group is exposed to interest rate changes with respect to
loans based on the following repricing structure:
NOK in million
6 months or less
- -
Total
Interest on the date of the balance sheet was as follows:
NOK in million
Long-term loans
EIB loan
Short-term loans
Securitization - sale of receivables
Securitization - uncommited facility secured by receivables
Overdraft facility
Average weighted interest rate %
Maturity analysis for loans 2021
NOK in million
Less than
months
years Total
Long-term financing
Short-term financing - - -
Other interest-bearing loans - - - - -
Total
Maturity analysis for loans 2020
NOK in million
Less than
months
years Total
Long-term financing
Short-term financing - - -
Total
Includes interest payable.
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NOTE 20 – LEASES
Atea as a lesse
The nature of the lessee's leasing activities
Practical expedients applied
Leases with a lease term of 12 months or shorter, except Financial subleases, will not be capitalised.
Low-value leases, meaning mainly office equipment with an underlying value of USD 5,000 or less
when they are new, will not be capitalised. This is not related to Financial subleases.
Contracts with extension options
Some leases of premises contain extension options exercisable by the Group. The extension options
held are exercisable only by the Group, and not by the lessors. The Group includes an extension of
the contracts in the lease valuation if it is reasonably certain that the Group will extend the contracts.
Subleasing
The Group is subleasing products to the costomers as part of the regular operations. In addition, some
of its properties are subleased under operating and finance leases. As of 31 December 2021, the Group
had a net present value of NOK 124 million recognised in the Financial position as sublease contracts
Note 28 Commitments.
The information about leases for which the Group is a lessee is presented to the right:
Right-of-use assets
NOK in million
Buildings
and property
Computer
equipment
Motor
vehicles
Total
right-of-use
assets
Acquisition cost
1 January 2020
Changes from prior years
Ordinary additions
Revaluation decrease
Currency translation effects
31 December 2020
Changes from prior years
Ordinary additions
Revaluation decrease
Currency translation effects
31 December 2021
Accumulated depreciation
1 January 2020
Changes from prior years
Depreciation
Eliminated on revaluation
Currency translation effects
31 December 2020
Changes from prior years
Depreciation
Eliminated on revaluation
Currency translation effects
31 December 2021
Acquisition cost
Accumulated depreciation and
write downs
Book value 31 December 2020
Acquisition cost
Accumulated depreciation
Book value 31 December 2021
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Lease liabilities
Maturity analysis - contractual undiscounted cash flows to be paid after reporting date
NOK in million
Less than one year
One to five years
More than five years
Total undiscounted lease liabilities at 31 Dec
Lease liabilities included in the Consolidated statement
of financial position at 31 December
Current
Non-current
Atea as a lessor - age distribution operational lease
Maturity analysis - contractual undiscounted lease payments to be received after reporting date
NOK in million
Less than one year
One to two years
Two to three years
Three to four years
Mainly related to operating subleasing of premises. See Note 2.8.2.3.
Atea as a lessor - age distribution financial lease
Maturity analysis - contractual undiscounted lease payments to be received after reporting date
NOK in million
Less than one year
One to two years
Two to three years
Three to four years
Total undiscounted lease receivable
Unearned finance income
Net investement in the lease
Mainly related to financial subleasing of products to customers. See Note 2.8.2.3.
Amounts recognised in the Consolidated income statement
NOK in million
Profit on subleasing transactions
Income from subleasing right-of-use assets
Expenses relating to short -term leases
Expenses relating to leases of low-value assets
Interest expense, leasing
Interest income, subleasing
Interest expenses, subleasing
Atea is subleasing products to the costomers as part of the regular operations. The Group recognizes
revenue and the Cost of sales when the underlying assets are available for use by the customer.
Related to operating subleasing of premises.
A lease that at the commencement date, has a lease term of 12 months or less.
Interest expenses on Finance lease liabilities.
Interest paid for lease liabilities is included in Interest paid in Net cash flow from operational activities
in the Consolidated Statement of Cash flow.
Mainly related to interest income and expenses related to subleasing of products to the customers.
Amounts recognized in the Consolidated statement of cash flow
NOK in million
Total cash outflow from leases
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NOTE 21 – CHANGES IN FINANCIAL LIABILITIES
NOK in million
Long-term
interest-
bearing
liabilities
Current
interest-
bearing
liabilities
Long term
leasing
liabilities
Current
leasing
liabilities
Long-term
subleasing
liabilities
Current
subleasing
liabilities Total
Balance at 1 January 2021
Proceeds from overdraft/uncommitted securitization facility - - - - -
Repayments of overdraft/uncommitted securitization facility - - - - -
Lease payments - - - - -
Sublease payments - - - -
Other cash payments - - - - -
Deferred interest expenses - - - -
Lease contracts - non-cash items - - - - -
Other non-cash items - - -
Currency effect -
Balance at 31 December 2021
NOK in million
Long-term
interest-
bearing
liabilities
Current
interest-
bearing
liabilities
Long term
leasing
liabilities
Current
leasing
liabilities
Long-term
subleasing
liabilities
Current
subleasing
liabilities Total
Balance at 1 January 2020
Proceeds from overdraft/uncommitted securitization facility - - - - -
Repayments of overdraft/uncommitted securitization facility - - - - -
Lease payments - - - - -
Sublease payments - - - -
Other cash payments - - - - -
Deferred interest expenses - - - -
Lease contracts - non-cash items - - - - -
Other non-cash items - - -
Currency effect -
Balance at 31 December 2020
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NOTE 22 – LIQUIDITY RESERVE
Liquidity reserve is calculated as the difference between Atea's net debt limit according to its debt
covenants, and Atea's net debt on the balance sheet date.
Atea's debt covenants require that Atea limit its net debt on a Group level to 2.5x pro forma EBITDA
for the last 12 months.
NOK in million
Last 12 months pro forma EBITDA
Debt covenant ratio
Net debt limit
Liquidity reserve
NOK in million
Unutilised short-term overdraft facilities
Draft limitation, debt covenant
Liquidity reserve
Loan facilities (see Note 19
NOK in million
Long term
Unsecured EIB loan
-of which utilised
Short term
Uncommited securitization facility
-of which utilised - -
Overdraft facility
-of which utilised - -
-of which utilised - -
Net financial position
Net financial position consists of both current and non-current interest-bearing liabilities, less cash
and cash equivalents.
Net financial position does not include incremental net lease liabilities due to the adoption of IFRS 16
from 1 January 2019, as Atea's financial covenants specifically exclude incremental net lease liabilities
due to the adoption of IFRS 16 from the definition of net financial position.
NOK in million
Long-term interest-bearing liabilities
Long-term interest-bearing leasing liabilities
Current interest-bearing liabilities
Current interest-bearing leasing liabilities
Cash and cash equivalents
Net financial position
Long-term ROU assets leasing liabilities
Current ROU assets leasing liabilities
Long-term subleasing liabilities
Short-term subleasing liabilities
Long-term subleasing receivables
Short-term subleasing receivables
Incremental net lease liabilities due to IFRS 16 adoption
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NOTE 23 – PROVISIONS
NOK in million Restructuring
Profit-sharing
and bonuses
Legal and
tax claims
Losses on
fixed price
contracts
Other
provision for
obligations Total
At 1 January 2021 -
Recognised during the year: -
Additional provision during the year -
Unutilised provision reversed - - - -
Used during the year -
Currency translation effects - - -
At 31 December 2021
NOK in million Restructuring
Profit-sharing
and bonuses
Legal and
tax claims
Losses on
fixed price
contracts
Other
provision for
obligations Total
At 1 January 2020 - -
Recognised during the year: -
Additional provision during the year -
Unutilised provision reversed - - - -
Used during the year - -
Currency translation effects - - -
At 31 December 2020 -
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NOTE 24 – CLASSIFICATIONS OF FINANCIAL INSTRUMENTS
NOK in million FVTOCI
Amortised
cost Fair value
Financial assets
Long-term subleasing receivables
Trade receivables
Other receivables
Short-term subleasing receivables
Cash and cash equivalents
Derivative contracts
Financial liabilities
Long-term interest-bearing liabilities
Long-term subleasing liabilities
Long-term leasing liabilities
Other long-term liabilities
Trade payables
Current interest-bearing liabilities
Short-term subleasing liabilities
Current leasing liabilities
Other financial liabilities
Other current liabilities
Derivative contracts
Less prepaid expenses and accrued revenue.
Less other provision.
See Note 2.14.
NOK in million FVTOCI
Amortised
cost Fair value
Financial assets
Long-term subleasing receivables
Trade receivables
Other receivables
Short-term subleasing receivables
Cash and cash equivalents
Derivative contracts
Financial liabilities
Long-term interest-bearing liabilities
Long-term subleasing liabilities
Long-term leasing liabilities
Other long-term liabilities
Trade payables
Current interest-bearing liabilities
Short-term subleasing liabilities
Current leasing liabilities
Other financial liabilities
Other current liabilities
Derivative contracts
Less prepaid expenses and accrued revenue.
Less other provision.
See Note 2.14.
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NOTE 25 – CORPORATE STRUCTURE OF THE ATEA GROUP
From date
Local
currency
Voting
rights/
owner-
Primary activity
Holding
Atea ASA NOK Listed
Norway
Atea AS NOK IT infrastructure
Atea Finans AS NOK
Sweden
SEK
Atea Sverige AB SEK
Atea Finans AB SEK
Denmark
DKK
Atea A/S DKK
Atea Inc USD
Atea Finans A/S DKK
Finland
EUR
Atea Oy EUR
BCC Finland Oy EUR
Atea Finance Finland Oy EUR
Topnordic Finland Oy EUR
From date
Local
currency
Voting
rights/
owner-
Primary activity
The Baltics
Atea Baltic UAB EUR
Atea UAB EUR IT infrastructure
Atea AS EUR IT infrastructure
Atea Finance OÜ EUR Leasing
Atea Finance Lithuania UAB EUR Leasing
Solver UAB EUR IT infrastructure
EIT Sprendimai UAB EUR IT infrastructure
BMK UAB EUR IT infrastructure
EUR IT infrastructure
CRC SIA EUR IT infrastructure
Atea SIA EUR IT infrastructure
AppXite
AppXite SIA EUR Software distribution
AppXite AS NOK Software distribution
AppXite AB SEK Software distribution
AppXite B.V. EUR Software distribution
AppXite S.R.L. EUR Software distribution
AppXite ApS DKK Software distribution
AppXite Oy EUR Software distribution
Group Shared Services
Atea Logistics AB SEK Group Shared Services
Atea Global Services AB SEK Group Shared Services
Atea Global Services SIA EUR Group Shared Services
Atea Service Center AB SEK
Securitization contract
management
Atea Group Functions A/S DKK Group Shared Services
For Investments in associated companies, see Note 14.
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NOTE 26 – BUSINESS COMBINATIONS
2020
Acquisitions in 2020
Atea has acquired one company during 2020. The financial performance from the acquisition date to
the end of the year for the acquired company is considered to be immaterial from a Group perspective.
Serveriai Verslui UAB
Atea acquired Serveriai Verslui UAB in October 2020. The acquisition will strengthen Atea's position
within Cloud and IT outsourcing services in Lithuania.
Allocation of purchase price
This aquisition resultet in a balance of customer contracts. The balance of customer contracts repre-
sents the surplus of the purchase price compared with the fair value of the net identifiable assets of
the acquired company.
The fair values have been determined on provisional basis because new information may occur.
Breakdown of the acquired net assets and goodwill in 2020 is as follows:
NOK in million Serveriai Verslui UAB
Acquisition date
Country Lithuania
Voting rights/ownership interest
Acquisition cost:
Consideration
Liabilities assumed
Total acquisition cost
Identification of excess value:
Contracts and customer relationships
Deferred tax
Net excess value
Fair value of net assets acquired, excluding goodwill
Controlling ownership interests
Goodwill -
Consideration that is dependent on future results is recognized as an obligation based on the fair value
at the time of acqusition.
Assets and liabilities associated to the acquisitions in 2020 are as follows:
NOK in million Serveriai Verslui UAB
Property, plant and equipment
Trade receivables
Other receivables
Cash and cash equivalents
Total asset
Current liabilities
Total liabilities
Net assets acquired
Net cash payments in connection with the acquisitions are as follows:
NOK in million Serveriai Verslui UAB
Considerations and costs in cash and cash equivalents
Cash and cash equivalents in acquired companies
Net cash payments for the acquisitions
If all acquired entities had been consolidated from 1 January 2020, the consolidated
pro forma income statements for 2020 would show revenue and profit as follows:
NOK in million
Operating revenue
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NOTE 27 – CONTINGENT LIABILITIES AND ASSETS
Ordinary course of business
in the ordinary course of business. It is not anticipated that any material liabilities will arise from the
contingent liabilities. The Group has given guarantees in the ordinary course of business amounting
Note 28
Legal disputes
-
ening the Group's financial standing. If the disputes nevertheless end with a negative outcome, Atea
is insured in most cases.
NOTE 28 – COMMITMENTS
NOK in million
Guarantees to financial institutions
Guarantees to business associates
Residual value obligations related to leasing activities
Total guarantees
In addition to facilities disclosed in Note 19, Atea ASA issued guarantees for sublease facilities of NOK 116
As part of the ordinary operations, parent company guarantees are furnished to suppliers and partners
on behalf of subsidiaries.
losses is considered being low.
Pledged assets under securitization contract (see Note 19)
secured by receivables at the end of 2021 and at the end of 2020.
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NOTE 29 – RELATED PARTIES
Atea has ongoing transactions with related parties. All the transactions are in accordance with the
arm's length principle and as part of the ordinary operations. The most important transactions are
listed below.
The transactions have been carried out by companies controlled by Ib Kunøe, who is the Board Chair-
man and largest shareholder of Atea ASA through the company Systemintegration ApS and Managing
Wages and remuneration to the CEO, CFO, Board of Directors are described in a separate Remuneration
report published at atea.com.
Sales to(+)/from(-)
related parties
Credit (+)/debit (-) balances
with related parties
NOK in million
Leasing of property or equipment -
Development of software
Other
As part of the acquisition, a small number of employees have joined Atea. The purchase price for the
business area is DKK 7.3 million. The amount was paid in January 2021. Columbus A/S is controlled by
Ib Kunøe, who is the Chairman of the Board and largest shareholder of Atea ASA. The transactions are
considered to be in accordance with the arm's length principle
NOTE 30 – REORGANIZATION COSTS
67 full time employees and change of Managing Director. The program resulted in severance costs of
NOK 37 million, which were recognized as a Restructuring costs during the first half of 2020.
The program also resulted in additional write-downs and provisions of NOK 35 million. These costs
are recognized in the Consolidated statement of Comprehensive Income during the first half of 2020.
NOTE 31 – GOVERNMENT GRANTS
Note 2.24.
NOTE 32 – EVENTS AFTER THE BALANCE SHEET DATE
Dividend
On February 7, 2022 the Board of Atea ASA resolved to propose a dividend of NOK 5.50 per share
at the next Annual General Meeting to be held on April 28, 2022. The dividend will be split into two
purposes, the dividend shall be considered as repayment of paid in capital. Further details on the
dividend payment will be provided in the Notice to the Annual General Meeting.
The Board of Directors of Atea ASA has on 11 February 2022 resolved to initiate a share repurchase
program. The share repurchase program is in accordance with the power of attorney granted to the
Board by the Annual General Meeting of Atea ASA on April 29, 2021.
The share repurchase program will be for a maximum consideration of NOK 180 million, and for a
maximum of 1,000,000 shares. The program will commence on February 14 and continue until March
paid per share under the program is NOK 180. Shares repurchased under the program will be used to
fulfill the company’s obligations under its share-based compensation agreements.
Acquisition in Denmark
-
structure software business. The acquired business sells hardware and standard software to customers
Closing of the agreement is subject to customary conditions for completion, including the transfer of
major customer contracts and approval from the competition authorities.
There were no other significant events after the balance sheet date which could affect the evaluation
of the reported accounts.
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ALTERNATIVE PERFORMANCE MEASURES
The financial information is prepared in accordance with International Financial Reporting Standards
measures that are regularly reviewed by management to enhance the understanding of Atea’s perfor-
as a financial measure of historical or future financial performance, financial position, or cash flows,
other than a financial measure defined or specified in the International Financial Reporting Standards
as adopted by EU.
Atea uses the following APMs:
Pro forma revenue and EBITDA
Pro forma revenue and EBITDA includes revenue and EBITDA from companies acquired during 2021
and 2020 in both the current and prior full year. Pro forma financial results are used to calculate organic
Pro forma revenue in constant currency excludes the effect of foreign currency rate fluctuations.
Growth in constant currency is translating revenue recognized during the current period using exchange
rates for the previous period.
NOK in million
Revenue
Adjustment for acquisitions - -
Pro forma revenue
Pro forma revenue on last year currency
Pro forma growth in constant currency
Gross profit
Gross profit is defined as revenue less cost of sales. The Groups revenue is recognized either gross or
net depending on revenue streams. Costs of sales include products and services bought from suppliers
and resold to customers. Costs of sales include all direct expenses for goods and services directly
connected to the sales. Direct costs related to services include leasing, outsourcing, and freight.
NOK in million
Revenue
Cost of sales
Gross profit
Operating expenses
Operating expenses include payroll and related costs, other operating expenses, share based compen-
sation, restructuring costs, depreciation and amortization costs.
NOK in million
Payroll and related costs
Other operationg costs
Share based compensation
Restructuring costs -
Depreciation and amortization
Amortization related to acquisitions
Total operating expenses
EBITDA
NOK in million
EBITDA
Adjustment for acquisitions -
Pro forma EBITDA
Free Cash Flow
Free cash flow is defined as cash flow from operations, less capital expenditures. Capital expenditure
is a net of cash payments to acquire or develop property, plant and equipment, intangible assets and
proceeds from sale of assets.
-
holders in the form of a dividend. Any dividends proposed by the Board of directors to the annual
general meeting shall be justified based on the company’s dividend policy and its capital requirements.
NOK in million
Cash flow from operations
Purchase of PPE and intangible assets
Sale of PPE and intangible assets
Capital expenditures through cash
Free cash flow
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Net financial position
Net financial position consists of both current and non-current interest-bearing liabilities, less cash
and cash equivalents.
indebtedness. It is also used in Atea's covenants on debt agreements.
Net financial position does not include incremental net lease liabilities due to the adoption of IFRS
16 from 1 January 2019. IFRS 16 requires lessees to recognise most lease contracts on their balance
adoption of IFRS 16 from the definition of net financial position.
NOK in million
Interest-bearing long-term liabilities
Interest-bearing long-term leasing liabilities
Interest-bearing current liabilities
Interest-bearing current leasing liabilities
Cash and cash equivalents
Net financial position
Long-term ROU assets leasing liabilities
Current ROU assets leasing liabilities
Long-term subleasing liabilities
Short-term subleasing liabilities
Long-term subleasing receivables
Short-term subleasing receivables
Incremental net lease liabilities due to IFRS 16 adoption
Liquidity reserve
Liquidity reserve is calculated as the difference between Atea's net debt limit according to its debt
covenants, and Atea's net debt on the balance sheet date.
Atea's debt covenants require that Atea limit its net debt on a Group level to 2.5x pro forma EBITDA
for the last 12 months.
NOK in million
Last 12 months pro forma EBITDA
Debt covenant ratio
Net debt limit
Net financial position
Liquidity reserve
Net Working Capital
program, see Note 19 for more details.
NOK in million
Inventories
Trade receivables
Other receivables
Trade payables
VAT, taxes and government fees
Provisions
Other current liabilities
Working capital
Securitization effect
Working capital before securitization
Year to date revenue
Working capital in relation to annualized revenue
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Adjusted Equity ratio
Atea's adjusted equity ratio is defined as its equity as a percentage of its adjusted total assets. Atea's
adjusted total assets are calculated by deducting incremental lease assets due to the adoption of IFRS
NOK in million
Total assets
Deduct: incremental lease assets due to IFRS 16 adoption
Right-of-use assets
Long-term subleasing receivables
Short-term subleasing receivables
Adjusted total assets
Equity
Equity ratio
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Atea ASA
Financial Statements and Notes
Statement of Comprehensive Income Atea ASA 78
Statement of Financial Positions Atea ASA 79
Statement of Cash Flow Atea ASA 80
Statement of Changes in Equity Atea ASA 81
Note 1
accounting principles 82
Note 2
Note 3
Note 4
Note 5
Note 6
Note 7
Note 8
Note 9
Note 10
Note 11
Note 12
Note 13
Note 14
Content
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Statement of Comprehensive Income Atea ASA
NOK in million Note
Revenue
Payroll and related costs
Depreciation and amortisation
Other operating costs
-41 -23
Financial income
Financial expenses
Net financial items
463 449
Profit before tax 422 426
Tax
Profit for the period 436 433
Profit for the period 436 433
Items that may be reclassified subsequently to profit or loss - -
Other comprehensive income - -
Total comprehensive income for the period 436 433
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Notes indexNotes index
Statement of Financial Positions Atea ASA
NOK in million Note
ASSETS
Deferred tax assets
Other long-term receivables
Investments in subsidiaries
Non-current assets 4,826 4,759
Trade receivables
Other receivables
Other financial assets
Cash and cash equivalents
Current assets 1,698 2,170
Total assets 6,524 6,930
EQUITY AND LIABILITIES
Share capital and premium
Other reserves
Retained earnings
Equity 1,968 1,972
Interest-bearing long-term liabilities
Non-current liabilities 475 476
Trade payables
Other current liabilities
Other financial liabilities
Current liabilities 4,081 4,482
Total liabilities 4,556 4,958
Total equity and liabilities 6,524 6,930
Oslo, 17 March 2022
Ib Kunøe
Chairman of the Board
Morten Jurs
Sven Madsen
Marianne Urdahl
Christian Våge
Leiv Jarle Larsen
Lisbeth Toftkær Kvan
Steinar Sønsteby
CEO
Saloume Djoudat
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Notes indexNotes index
Statement of Cash Flow Atea ASA
NOK in million Note
Profit before tax
Adjustment for:
Net interest expenses
Depreciation and amortization
Share-based compensation
Interest received
Interest paid
Change in trade receivables
Change in trade payables
Cash flow from operational activities 787 -76
Cash flow from investing activities - -
Dividend paid
Payments from changes in treasury shares
Proceeds from new share issue
Payments of lease liabilities
Changes in debt
Cash flow from financing activities -918 348
Net change in cash and cash equivalents at the start for the year -131 272
Cash and cash equivalents at the start of the year
Cash and cash equivalents at the end of the year
460 590
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Statement of Changes in Equity Atea ASA
Share capital and premiums
Other
reserves Retained earnings
NOK in million Share capital
Share
premium
Other
paid-in capital
Option
programmes
Retained
earnings Total equity
Balance at 1 January 2020 110 354 879 286 459 2,088
Profit for the year
Issue of share capital
Employee share option programmes, value of employee contributions
Dividend
Changes related to own shares
Equity at 31 December 2020 110 393 879 332 258 1,972
Balance at 1 January 2021 110 393 879 332 258 1,972
Profit for the year
Issue of share capital
Employee share option programmes, value of employee contributions
Dividend
Changes related to own shares
Equity at 31 December 2021 112 546 879 381 50 1,968
See also Note 8.
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Notes indexNotes index
NOTE 1 – GENERAL INFORMATION AND
ACCOUNTING PRINCIPLES
About Atea ASA
These are the financial statements of Atea ASA, which is the holding company for the Group and
Note 1
in the Group’s consolidated financial statements.
Revenue
Atea ASA charges group costs to subsidiaries. As a holding company, Atea ASA is a purely administrative
unit offering services for the subsidiaries in all the countres.
Accounting principles
Norwegian Accounting Act.
The explanation of the accounting policies for the group also apply to the parent company, and the
notes to the consolidated financial statements will in some cases cover the parent company. See
Note 2 in the explanation of the accounting policy in the Group’s consolidated financial statements.
Critical accounting estimates and assessments in applying the group’s accounting policies is mainly
Note 4 in the Group’s
consolidated financial statements.
There may be figures and percentages that do not always add up correctly due to rounding differences.
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NOTE 2 – SENSIVITY ANALYSIS
Interest rate risk Foreign currency risk
% %
NOK in million
Amount
affected
Effect on
profit/loss
Other effects
on equity
Effect on
profit/loss
Other effects
on equity
Amount
affected
Effect on
profit/loss
Other effects
on equity
Effect on
profit/loss
Other effects
on equity
Financial assets
- - - - - - -
- - - -
- - - -
- - - -
- - - -
Effect on financial assets before tax - - - -
- - - -
Effect on financial assets after tax - - - -
Financial liability items
- - - - - - -
- - - -
- - - -
- - - -
- - - -
Effect on financial liability items before tax - - - -
- - - -
Effect on financial liability items after tax - - - -
Total increase/reduction - - - -
Basis points.
At the end of 2021 Atea ASA had following forward contracts:
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Interest rate risk Foreign currency risk
% %
NOK in million
Amount
affected
Effect on
profit/loss
Other effects
on equity
Effect on
profit/loss
Other effects
on equity
Amount
affected
Effect on
profit/loss
Other effects
on equity
Effect on
profit/loss
Other effects
on equity
Financial assets
- - - - - - -
- - - -
- - - -
- - - -
- - - -
Effect on financial assets before tax - - - -
- - - -
Effect on financial assets after tax - - - -
Financial liability items
- - - - - - -
- - - -
- - - -
- - - -
- - - -
Effect on financial liability items before tax - - - -
- - - -
Effect on financial liability items after tax - - - -
Total increase/reduction - - - -
Basis points.
At the end of 2020 Atea ASA had following forward contracts:
- buying EUR 22,6 million and selling USD 27,8 million, in less than three months, at the exchange rate of 1.2264075 with an estimated fair value of NOK 0 million
- buying USD 28 million and selling EUR 23 million, in less than three months, at the exchange rate of 1.2290303 with an estimated fair value of NOK 0 million
- buying USD 27,8 million and selling EUR 22,7 million, in less than three months, at the exchange rate of 1.2269701 with an estimated fair value of NOK 0,05 million
- buying SEK 488,6 million and selling DKK 361,3 million, in less than three months, at the exchange rate of 1.3520999 with an estimated fair value of NOK 1,9 million
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NOTE 3 – PAYROLL AND AUDIT FEE
NOK in million
Wages and salaries to employees
Total social security costs
Option plans for the management and employees
Pension costs
Other personnel costs
Total payroll and related costs
Average number of full time employees
Wages and remuneration to the CEO, CFO, Board of Directors and the employees’ share option plans
are described in a separate Remuneration report.
Deloitte is the auditor of Atea ASA. The table below shows Deloitte’s total charges for auditing and
other services in 2021. All amounts are exclusive of VAT.
NOK in million
Auditor's fees
Tax advisory services -
Other non-audit services - -
Total
NOTE 4 – NET FINANCIAL ITEMS
NOK in million
Dividend from subsidiaries
Group contribution and other financial income
Interest income from subsidiaries
Other interest income
Total financial income
Foreign exchange effects
Interest expenses from other loans
Other financial expense
Total financial expenses
Total net financial items
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NOTE 5 – TAXES
Income tax recognized in profit or loss:
NOK in million
Deferred tax
Total income tax expenses
The income tax expense for the year can be reconciled to the accounting profit as follows:
NOK in million
Profit before tax
Income tax expense calculated at 22 %
Tax effect of:
- income non taxable and expenses non deductible
Total income tax expenses
Effective tax rate
Atea ASA does not have any tax payable because the company has a tax loss carryforward.
Deferred tax balances are presented in the statement of financial position as follows:
NOK in million
Deferred tax assets related to carryforward losses
Other temporary differences
Deferred tax related to temporary differences
Net deferred tax assets
adequately probable that the Norwegian subsidiary, Atea AS will generate a taxable profit and distribute
group contribution to the parent company Atea ASA.
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NOTE 6 – SHARES IN SUBSIDIARIES
Financial year 2021
NOK in million Head office
Ownership and
Equity at
Book value Primary activity
IT infrastructure
IT infrastructure
IT infrastructure
IT infrastructure
IT infrastructure
Atea Global Services SIA Services
AppXite SIA IT infrastructure
Atea Service Center AB
Securitization contract
management
Total shares in subsidiaries
Financial year 2020
NOK in million Head office
Ownership and
Equity at
Book value Primary activity
IT infrastructure
IT infrastructure
IT infrastructure
IT infrastructure
IT infrastructure
Atea Global Services SIA Services
AppXite SIA IT infrastructure
Atea Service Center AB
Securitization contract
management
Total shares in subsidiaries
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NOTE 7 – TRADE AND OTHER RECEIVABLES
NOK in million
Prepaid expenses
Receivables from subsidaries
Junior Note
Total trade and other current receivables
Junior Note is receivables from subsidiaries related to Securitization program. See Note 19 in Atea Group Financial Statements and Notes.
NOTE 8 – PAID-IN CAPITAL, SHAREHOLDERS AND OPTIONS
Number of shares Share capital
except Number of shares Issued Treasury shares Issued Treasury shares Share premium
Total share capital
and premiums
At 1 January 2020
Reduction of the par value of the company's shares
- - - -
Issue of Share capital
- -
Changes related to own shares
- - -
At 31 December 2020
At 1 January 2021
Issue of Share capita
- -
Changes related to own shares
- - -
At 31 December 2021
All the shares have equal rights. All the shares issued by the company are fully paid.
Issue of Share capital is related to Share options for the Management and selected employees.
Share options have been allotted to the management and selected employees. Each share option allows for the subscription of one share in Atea ASA.
The fair value of the options is calculated when they are allotted and expensed over the vesting period.
See Note 17 in Atea Group Financial Statements and Notes.
Related to Share options for the Management and selected employees.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Statement of Comprehensive Income | Statement of Financial Position | Statement of Cash Flow | Statement of Changes in Equity | Financial Notes | Auditor's report
Notes indexNotes index
NOTE 9 – TRADE PAYABLES AND OTHER
CURRENT LIABILITIES
NOK in million
Trade payables
Trade payables in the same group
Total trade payables
Other current liabilities
Deposit in cash pool from subsidiaries
Total other financial liabilities
Note 19
in Atea Group Financial Statements and Notes.
requirements of the majority of the group’s subsidiaries. Atea is charged or receives interest on the net Top
Currency Accounts. Under the cash pool arrangement each Participants accounts are credited/debited
interest irrespective of the net position on the Top Currency Accounts.
NOTE 10 – BORROWINGS
NOK in million
Long-term receivables
Long-term receivables from subsidiaries
Total receivables
Long-term loans
Other long-term debt
Interest-bearing long-term liabilities
specific margin calculated based on the subsidiaries’ respective creditworthiness. The interest is charged
and falls due annually in arrears. The principal amount will not fall due for payment in the foreseeable
future.
European Investment Bank, NOK 475 million
is unsecured, and will be repaid in a single installment following a term of five years.
Maturity analysis for loans 2021
NOK in million
Less than
months
years Total
Short-term financing - -
Long-term financing - - -
Total - -
Maturity analysis for loans 2020
NOK in million
Less than
months
years Total
Short-term financing - -
Long-term financing - - -
Total - -
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Statement of Comprehensive Income | Statement of Financial Position | Statement of Cash Flow | Statement of Changes in Equity | Financial Notes | Auditor's report
Notes indexNotes index
NOTE 11 – LIQUIDITY RESERVE
Atea Group liquidity reserve is limited by a bond covenant ratio in 2021 and 2020 of 2.5x Atea Group
Note 22 in Atea Group Financial State-
NOTE 12 – CLASSIFICATION OF FINANCIAL INSTRUMENTS
2021
NOK in million
Amortised
cost
Fair
value
Financial assets
Interest-bearing long-term receivables
Trade receivables
Other receivables
Cash and cash equivalents
Financial liabilities
Interest-bearing long-term liabilities
Trade payables
Trade payables in the same group
Other current liabilities
Less prepaid expenses
Less provision for restructuring and other provision.
2020
NOK in million
Amortised
cost
Fair
value
Financial assets
Interest-bearing long-term receivables
Trade receivables
Other receivables
Cash and cash equivalents
Financial liabilities
Interest-bearing long-term liabilities
Trade payables
Trade payables in the same group
Other current liabilities
Less prepaid expenses
Less provision for restructuring and other provision.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Statement of Comprehensive Income | Statement of Financial Position | Statement of Cash Flow | Statement of Changes in Equity | Financial Notes | Auditor's report
Notes indexNotes index
NOTE 13 – COMMITMENT
NOK in million
Guarantees to financial institutions
Guarantees to business associates
Total commitments
provided for the subsidiaries (see Note 19 and Note 28
In addition to facilities disclosed in Note 19, Atea ASA issued guarantees for sublease facilities of NOK 116
As part of the ordinary operations, parent company guarantees are furnished to suppliers and partners
on behalf of subsidiaries.
liabilities the company has incurred on behalf of the subsidiaries. Since the financing companies were
established in 2007, no losses have been incurred with respect to the residual value of leasing activities.
NOTE 14 – EVENTS AFTER THE BALANCE SHEET DATE
See Note 32 in Atea Group Financial Statements and Notes.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Statement of Comprehensive Income | Statement of Financial Position | Statement of Cash Flow | Statement of Changes in Equity | Financial Notes | Auditor's report
Notes indexNotes index
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To the General Meeting of Atea ASA
INDEPENDENT AUDITOR’S REPORT
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Atea ASA, which comprise:
• The financial statements of the parent company Atea ASA (the Company), which comprise the statement of
financial position as at 31 December 2021, the statement of comprehensive income, statement of changes in
equity and statement of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies, and
• The consolidated financial statements of Atea ASA and its subsidiaries (the Group), which comprise the
statement of financial position as at 31 December 2021, the statement of comprehensive income, statement of
changes in equity and statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies.
In our opinion:
• the financial statements comply with applicable statutory requirements,
• the financial statements give a true and fair view of the financial position of the Company as at 31 December
2021, and its financial performance and its cash flows for the year then ended in accordance with simplified
application of international accounting standards according to section 3-9 of the Norwegian Accounting Act, and
• the financial statements give a true and fair view of the financial position of the Group as at 31 December 2021,
and its financial performance and its cash flows for the year then ended in accordance with International
Financial Reporting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company and the Group as required by laws and regulations and
the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation
(537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 15 years from the election by the general meeting of the shareholders
on 27 April 2006 for the accounting year 2006.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Page 2
Independent Auditor's Report -
Atea ASA
The key audit mattes identified in our audit are:
• Impairment of goodwill
Impairment of goodwill
Key audit matter
How the matter was addressed in the audit
As disclosed in note 13 the carrying amount of goodwill
amounted to NOK
3,942 million as at 31 December 2021.
The Group allocates goodwill to the cash
-generating
units which management has determined are the
countries of operation, which also
are defined as the
Group’s segments.
Determining whether goodwill and are impaired requires
estimation of the value in use. As disclosed in note 4
and
13
, the value in use calculation requires management to
make significant estimates and assumptions related to
future revenues, profit margins, costs and capital
employment.
The outcome of impairment assessments
may vary significantly, dependent on the assump
tions
applied
.
Due to the significant judgment involved in determining
the assumptions used in the testing for impairment of
goodwill we have assessed this to be a Key Audit Matter
.
We challenged the assumptions and judgement used in
the impairment model for assessing the recoverability of
the carrying amount of goodwill. Our procedures
included:
• We obtained an understanding of management’s
process for impairment testing of goodwill.
• We assessed the appropriateness of the
identification of cash-generating units.
• We tested the methodology applied to estimate
recoverable amount against the requirements of IAS
36, Impairment of assets.
• We obtained an understanding of and assessed the
basis for the key assumptions for the estimated cash
flows.
• We challenged the key assumptions used in the
estimation of cash flow including the growth rate.
• We assessed the discount rate applied by
benchmarking against independent market data.
• We tested the mathematical accuracy of
management’s impairment model.
• We used Deloitte valuation specialists in our audit of
the impairment assessment of goodwill.
• We also assessed the adequacy of the related notes
in the financial statements.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information in the Board of
Directors’ report and the other information accompanying the financial statements. The other information comprises
information in the annual report, but does not include the financial statements and our auditor’s report thereon. Our
opinion on the financial statements does not cover the information in the Board of Directors’ report nor the other
information accompanying the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’ report
and the other information accompanying the financial statements. The purpose is to consider if there is material
inconsistency between the Board of Directors’ report and the other information accompanying the financial
statements and the financial statements or our knowledge obtained in the audit, or whether the Board of Directors’
report and the other information accompanying the financial statements otherwise appears to be materially
misstated. We are required to report if there is a material misstatement in the Board of Directors’ report or the
other information accompanying the financial statements. We have nothing to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable legal requirements.
Our opinion on the Board of Director’s report applies correspondingly to the statements on Corporate Governance
and Corporate Social Responsibility.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Statement of Comprehensive Income | Statement of Financial Position | Statement of Changes in Equity | Statement of Cash Flow | Financial Notes | Auditor's report
Page 3
Independent Auditor's Report -
Atea ASA
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance
with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and for
the preparation and true and fair view of the consolidated financial statements of the Group in accordance with
International Financial Reporting Standards as adopted by the EU, and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern. The financial
statements of the Company use the going concern basis of accounting insofar as it is not likely that the enterprise
will cease operations. The consolidated financial statements of the Group use the going concern basis of accounting
unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but
to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:
• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error.
We design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company's or the Group's internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• conclude on the appropriateness of management’s use of the going concern basis of accounting, and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company and the Group's ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Company and the Group to cease to continue as a going concern.
• evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
achieves a true and fair view.
• obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
Page 4
Independent Auditor's Report -
Atea ASA
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on compliance with Regulation on European Single Electronic Format (ESEF)
Opinion
We have performed an assurance engagement to obtain reasonable assurance that the financial statements with file
name 5967007LIEEXZXINVS13-2021-12-31-en have been prepared in accordance with Section 5-5 of the Norwegian
Securities Trading Act (Verdipapirhandelloven) and the accompanying Regulation on European Single Electronic
Format (ESEF).
In our opinion, the financial statements have been prepared, in all material respects, in accordance with the
requirements of ESEF.
Management’s Responsibilities
Management is responsible for preparing, tagging and publishing the financial statements in the single electronic
reporting format required in ESEF. This responsibility comprises an adequate process and the internal control
procedures which management determines is necessary for the preparation, tagging and publication of the financial
statements.
Auditor’s Responsibilities
Our responsibility is to express an opinion on whether the financial statements have been prepared in accordance
with ESEF. We conducted our work in accordance with the International Standard for Assurance Engagements (ISAE)
3000 – “Assurance engagements other than audits or reviews of historical financial information”. The standard
requires us to plan and perform procedures to obtain reasonable assurance that the financial statements have been
prepared in accordance with the European Single Electronic Format.
As part of our work, we performed procedures to obtain an understanding of the company’s processes for preparing
its financial statements in the European Single Electronic Format. We evaluated the completeness and accuracy of
the iXBRL tagging and assessed management’s use of judgement. Our work comprised reconciliation of the financial
statements tagged under the European Single Electronic Format with the audited financial statements in human-
readable format. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Oslo, 17 March 2022
Deloitte AS
E
Essppeenn JJoohhaannsseenn
State Authorised Public Accountant
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Statement of Comprehensive Income | Statement of Financial Position | Statement of Changes in Equity | Statement of Cash Flow | Financial Notes | Auditor's report
The Board of Directors and management of
Atea ASA (the "company") aim to execute
their respective tasks in accordance with the
highest standards for corporate governance.
Atea's standards for corporate governance
provide a critical foundation for the compa-
ny’s management. These principles must be
viewed in conjunction with the company’s
efforts to constantly promote a sound
corporate culture throughout the organiza-
tion. The company’s core values of respect,
trust, accountability and equal treatment
are central to the Board’s and management’s
efforts to build confidence in the company,
both internally and externally.
The company’s and its subsidiaries' ("Atea"
or the "Group") policy on corporate govern-
ance are provided in the annual report and
on the company's website. Atea’s principles
for corporate governance are based on
Norwegian law, regulations by the Oslo
Stock Exchange and the Norwegian Code
of Practice for Corporate Governance
(the “Code”) published by the Norwegian
Corporate Governance Board on October
14, 2021. These principles are described in
detail below.
1. Implementation and reporting
on corporate governance
The Board of Directors is responsible for the
implementation of sound corporate govern-
ance policies across the Group, in accordance
with the Norwegian Code of Practice for
Corporate Governance. If Atea does not
fully comply with this Code, the company
provides an explanation of the reason for the
deviation and what solution it has selected.
2. Business operations
The business objective of Atea as stated in
the Articles of Association is as follows:
"The objective of the company is the sale of
IT services, equipment, systems and related
products, hereunder to participate in other
companies having financial purposes." The
Articles of Association are available on the
company’s website.
Each year, the Board of Directors conducts a
full-day meeting with Management to evalu-
ate the Group's business strategy. During
the meeting, clear objectives, strategies and
risk profiles for the Group’s business activi-
ties are defined in order to create value for
shareholders. The business strategy provides
Management with a basis for carrying out
investments and other structural measures.
Atea's sustainability guidelines are an
essential component of the Group's busi
-
ness strategy. The sustainability guidelines
include an impact assessment of the Group's
business strategy on external stakeholders.
An annual sustainability report containing
these guidelines is published at atea.com.
3. Equity and dividends
Capital structure
The Board of Directors continuously assesses
Atea's capital structure, financial strength
and capital requirements in light of Atea's
business objectives, strategy and risk profile.
Dividend
Atea's objective is to offer competitive
returns to its shareholders through capital
appreciation and a high dividend pay-out.
The company's policy is to distribute
approximately 70-100 % of net profit after
tax to shareholders in the form of a dividend.
Any dividends proposed by the Board to the
General Meeting shall be justified based
on the company's dividend policy and its
capital requirements, in accordance with the
Norwegian Public Companies Act (allmenn-
aksjeloven) § 8-1.
Powers of attorney to the
Board of Directors
Powers of attorney granted by the share-
holders to the Board of Directors at the
General Meeting to increase the company’s
share capital or to purchase own shares shall
be limited to specific purposes, and each
purpose shall be treated as a separate issue
in the General Meeting. Powers of attorney
to the Board of Directors are only provided
with a term until the next Annual General
Meeting.
The general meeting can approve multiple
mandates. In such an instance, the proposals
for the mandates should stipulate a limit on
the overall amount by which the board shall
be permitted to increase the company’s share
capital.
4. Equal treatment of shareholders
Equal treatment
Neither the Board of Directors, Manage-
ment, or the General Meeting may make any
decision that is intended to give an unrea-
sonable advantage to certain shareholders
at the expense of other shareholders or the
company.
Decisions to waive the shareholders’
pre-emption rights
Any proposal to waive the pre-emption
rights of existing shareholders to subscribe
for shares in the event of share capital
increase will be justified. If the Board of
Directors has been granted a power of attor-
ney to increase the company's share capital
and waive the pre-emption rights of existing
shareholders, justification of such resolu-
tion will be disclosed in a stock exchange
announcement issued in connection with
the resolution.
Purchase of own shares
Transactions the company will carry out in
its own shares will be made either through
the stock exchange or if made otherwise, at
Statement of Corporate Governance
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
a prevailing stock exchange price. In case of
limited liquidity in the company's shares, the
company will consider other means of such
transactions to ensure equal treatment of all
shareholders.
Insider trading
The Board of Directors has adopted instruc-
tions for the Group’s employees and primary
insiders relating to inside information and
trading in financial instruments, including
the duty of confidentiality, prohibition of
trading, investigation and reporting require-
ments, and ban on giving advice.
5. Shares and negotiability
Atea ASA has only one class of shares. All
shares have equal rights. The Articles of
Association do not contain any restrictions
when it comes to voting rights, ownership
or trading of shares.
6. General meetings
The General Meeting guarantees sharehold-
er’s participation in the company’s highest
body. An Annual General Meeting shall
be held within June 30 each year. Notice of
the General Meeting shall be sent to all the
shareholders with a known address.
The right to participate in and vote at the
General Meeting may only be exercised
when ownership of shares has been recorded
in the company’s shareholder register (VPS)
on the fifth weekday prior to the General
Meeting being held, pursuant to Article 9
of the company’s Articles of Association.
Shareholders that wish to participate in the
General Meeting (personally or through
proxy) must, pursuant to Article 10 of the
Articles of Association, notify the company
within a deadline that will be provided in
the summons and which shall be no less
than 5 days prior to the date on which the
General Meeting is held. Registration for the
General Meeting is made in writing by letter
or through the Internet.
The Notice will provide the agenda for the
General meeting, and sufficiently detailed,
and specific information on each item on
the agenda for the General Meeting so that
the shareholders can make a decision on the
matters that are to be resolved. The Notice
will provide information on direct and proxy
voting procedures (including information
on a person who will be available to vote on
behalf of the shareholders as their proxy),
which enable shareholders to vote sepa-
rately for each individual agenda item or
candidate that shall be elected. Shareholders
may provide their votes in writing or elec-
tronically, although no later than two days
in advance of the General Meeting.
At a minimum, the Board Chairman, Chief
Executive Officer, Chief Financial Officer,
auditor, and a member of the Nomina-
tion Committee participate at the General
Meeting. The General Meeting is chaired
by an independent chairperson elected in
the meeting.
In addition to the Annual General Meeting,
an Extraordinary General Meeting may be
called by the Board. Shareholders who repre-
sent at least 5 % percent of the shares may,
pursuant to Section 5–7 of the Norwegian
Public Limited Companies Act, demand an
Extraordinary General Meeting to address
a specific matter.
7. The Nominating Committee
The Nomination Committee shall, pursuant
to Article 7 of the Articles of Association,
consist of the Board Chairman and two
members elected by the General Meeting.
The members who are elected by the General
Meeting have a term of office of two years.
The Nomination Committee was re-elected
by the Annual General Meeting in 2021.
The Nomination Committee's duties should
be to propose candidates for election to the
Board of Directors and to propose the fees
to be paid to the Board members. The Nomi-
nation Committee may also propose new
members to the Nomination Committee.
The nomination committee should justify
its recommendations for each candidate
separately.
The General Meeting has stipulated guide-
lines for the duties and composition of the
Nomination Committee. The guidelines
state that elected members of the Nomina-
tion Committee should a) be independent
of the Board of Directors and the company’s
main shareholders, b) have competence and
experience with respect to the position as
Board member, c) have good knowledge and
competence within the area of the Group’s
business and d) be well oriented within the
Nordic industry and commerce. The guide-
lines further state that the Nomination
Committee should have contact with major
shareholders, Board members and the CEO
as part of its work on proposing candidates
for election to the Board of Directors.
Atea has made arrangements on its website
(atea.com/investors/) whereby sharehold-
ers may submit proposals to the Nomination
Committee for candidates for election as
members of the Board of Directors.
The Code (article 7) states that; “The
nomination committee should not include
any executive personnel or any member
of the company’s board of directors.” The
company deviates from the recommendation
as the Board Chairman is a member of the
Nomination Committee. The participation
of the Board Chairman in the Nomination
committee is stated in the Articles of Asso-
ciation of the company, which have been
approved by the Annual General Meeting.
The Board is of the opinion that the Board
Chairman is a valuable member of the
Nomination committee, as the Chairman
has frequent contact with the shareholders
and is in the best position to understand the
operation of the Board and contribution of
the individual Board members.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
8. Board of directors:
composition and independence
Corporate Assembly
An agreement has been entered into with
the employees of the Norwegian part of
the Group, whereby a Corporate Assembly
shall not be established, but the employees
shall instead increase their representation
in the Board of Directors as provided by the
Norwegian Public Limited Companies Act
§ 6-4 (3).
Election and composition of the
Board of Directors
The General Meeting elects the shareholder’s
representatives to the Board of Directors.
The Nomination Committee prepares the
nominations for shareholder-elected Board
members prior to the election, as stated in
Article 7 above. Resolutions concerning the
composition of the Board of Directors are
made on the basis of a simple majority. The
Board of Directors elects the Board Chair-
man. This deviates from the Code, which
states that the Board Chairman should be
elected by the General Meeting. The reason
for such deviation is that it has been agreed
with employees and shareholders that a
Corporate Assembly shall not be estab
-
lished and then the Board Chairman shall,
pursuant to the Norwegian Public Limited
Companies Act § 6-1 (2), be elected by the
Board of Directors.
Systemintegration ApS is the company’s
largest shareholder and is represented by two
Board members. The other Board members
are independent of the company’s largest
shareholders and the company’s manage
-
ment. The Board members are elected
for a term of two years and may stand for
re-election.
Independence of the Board of Directors
The Board of Directors considers itself to be
independent of the Group’s management, and
free of any conflict of interest between the
shareholders, Board of Directors, corporate
management and the company’s other stake
-
holders. The annual report provides infor-
mation on the Board member’s participation
in Board meetings and their competence.
Members of the Board of Directors are
encouraged to own shares in Atea.
9. The Board of Directors work
The Board of Directors duties in general
The Board of Directors has primary respon-
sibility for governance of the Group. The
function of the Board of Directors is primar-
ily to safeguard the interests of the share-
holders. However, the Board of Directors
also bears responsibility for the company’s
other stakeholders.
The Board of Directors shall hire the Chief
Executive Officer, direct the Group's strat-
egy, and ensure proper control and risk
management of the company's assets, busi-
ness operations and financial reporting.
Matters of importance for these objectives
shall be reviewed and, if necessary, approved
by the Board of Directors. For example, the
Board will formally approve the Group's
annual and quarterly reports, business strat-
egy and M&A plans.
Rules of procedure
The work of the Board of Directors is
described in guidelines which are approved
by the Board. The guidelines relate to the
Board's responsibilities and authority, the
administration of Board meetings, and the
Board's confidentiality and conflict of inter-
est requirements.
The Board of Directors has routines in
place to ensure that members of the Board
and executive personnel make the company
aware of any material interests that they
may have in items to be considered by the
Board of Directors. A member of the Board
of Directors or executive team may not
participate in the discussion or decision
of any matter which is of such particular
importance or financial interest to himself
or any related party. If the chairman of the
Board is or has been personally involved in
matters of a material character, the Board's
consideration of such matters is chaired by
another member of the Board of Directors.
Transactions with related parties
In the event of transactions between the
company and its related parties, such as
transactions with a shareholder, a share
-
holder’s parent company, members of the
Board of Directors, executive personnel or
close associates of any such parties, the Board
of Directors will arrange for an assessment
of the transaction to be obtained from an
independent third party, however, this will
not apply if the transaction requires approval
from the General Meeting pursuant to
the Public Limited Liability Companies
Act. Further, independent valuations will
also be arranged in case of transactions
between companies in the Group where
any of the companies involved have minority
shareholders.
The Board charter states how the board of
directors and executive management shall
handle agreements with related parties,
including whether an independent valuation
must be obtained.
Notice and structure of meetings
The Board of Directors schedules fixed
meetings every year. Normally six to eight
meetings are held annually. Additional meet-
ings are called as required.
The Board of Directors discussions and
minutes of meetings are kept confidential,
unless the Board of Directors determines
otherwise or if there is clearly no need for
such treatment. In addition to the Board
members, the Chief Executive Officer, Chief
Financial Officer and the company secretary
will regularly participate in the Board
meetings. Other participants are invited as
required.
Board members receive information on the
Group’s operational and financial perfor-
mance, including monthly financial reports.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
The Board members are free to consult the
Group’s management if they feel a need to
do so. The Board charter can be found in
the Corporate Governance document at
atea.com.
Audit Committee
The Company has an Audit Committee, that
also serves as the Compliance Committee
for the Group.
The Audit committee schedules fixed meet-
ings every year. Normally six to eight meet-
ings are held annually. Additional meetings
are called as required. The Audit Commit-
tee charter can be found in the Corporate
Governance document at atea.com.
Use of Board Committees
The Group has a Nomination Committee
pursuant to the Articles of Association.
The Nomination Committee also serves
as the Group's Compensation Committee.
The Compensation Committee’s responsi-
bility is to prepare to the Board of Director's
guidelines for executive compensation and
to monitor these compensation guidelines.
Details of the company's use of Board
Committees are provided in the annual
report. The Nomination Committee charter
can be found in the Corporate Governance
document at atea.com.
The Board of Directors self-evaluation
The Board of Directors performs an annual
evaluation of how the Board members func-
tion individually and as a group.
10. Risk management and
internal control
Guidelines for internal control
The Group has established guidelines for
internal control which include routines for
financial reporting, communication, author-
ization, risk management, ethics and social
responsibility. These guidelines are reviewed
annually by the Board of Directors, in a full
day meeting with Management to evaluate
the Group's business strategy. During the
business strategy review, the Board performs
an assessment of the Group's most important
areas of risk exposure, including its internal
control arrangements.
Financial reporting controls
In order to ensure internal control and
manage risk, the Group conducts compre
-
hensive financial reporting and reconcilia-
tion on a monthly basis, on both a consoli-
dated, segment and subsidiary level.
Immediately after the completion of the
monthly financial report, the Group's finan-
cial administration holds a meeting with the
financial management of each of the busi-
ness segments. The purpose of the meeting
is to follow up on the performance of each
business segment and to identify potential
errors and omissions in the financial state-
ments. During the meetings, Management
analyzes variances between each segment's
actual performance and forecast, as well as its
performance in the previous year. External
market data is also used to analyze business
performance across the group. When the
financial reporting and analysis is complete,
Management reports the monthly financial
statements together with a summary of busi-
ness operations to the Board of Directors and
executive team.
All financial reporting within the Group
is in accordance with IFRS. All relevant
changes to IFRS and their impact on the
Group is disclosed in Note 2 to the Group
financial statements. The Group has imple-
mented changes to its accounting policies and
systems to adapt to these changes.
When the Group acquires companies, the
reporting practices of the acquired company
are reviewed and integrated with corporate
practices within a month of the acquisition
date so that the Group can consolidate the
acquired company within the Group accounts
by the next quarterly financial report.
Code of Conduct
The personal conduct of every Atea employee
shapes the work culture and defines our
reputation as a company. Atea employees
are expected to demonstrate the highest
standards of integrity and professionalism
when fulfilling their job responsibilities.
The Atea Code of Conduct sets the principles
with which Atea personnel work together
and with outside stakeholders. It provides
guidelines for our business practices which
must be followed by all Atea personnel
and is a source of governance for decision
making across Atea. The Code of Conduct
is published at atea.com.
It is the personal responsibility of every Atea
employee to review and follow the Code of
Conduct. All employees must take an exami-
nation on the Code of Conduct and sign an
agreement that they will abide by the Code
and relevant laws and regulations when
acting on behalf of Atea. Any violation of the
Code of Conduct will not be tolerated, and
may lead to internal disciplinary measures,
notice, dismissal, or – in the event of illegal
behaviour – criminal prosecution.
11. Remuneration of the
Board of Directors
The General Meeting determines the annual
remuneration to the Board of Directors.
The remuneration shall reflect the Board
of Directors responsibility, expertise, time
spent and the complexity of the operation.
The remuneration is not dependent on
results. No stock options have been granted
to the Board members.
Members of the Board of Directors and/or
companies with which they are associated,
do in general not take on assignments for
the company. If, however, such assignments
are made, the matters are disclosed to the
Board of Directors and the Board of Direc-
tors approves their remuneration.
Wages and remuneration to the Board of
Directors and the employees’ share option
plans are described in a separate Remunera-
tion report published at atea.com. If remu-
neration is provided to Board members in
addition to the regular Board remuneration,
this will be reported separately in the same
Remuneration report.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
12. Salary and other remuneration
for executive personnel
The CEO’s remuneration is set by the Board
of Directors, based on recommendation from
the Compensation Committee. The remu
-
neration of the CEO is specified in a separate
Remuneration report published at atea.com.
The Board of Directors has established a
Remuneration policy. The guidelines must
be considered and approved by the general
meeting in the event of any material changes,
and at least every fourth year. The guidelines
set out the main principles applied in deter-
mining the salary and other remuneration
to executives and the board of directors, are
linked to value creation for shareholders and
the company's earnings performance over
time and incentivises performance based on
quantifiable factors of which the executives
can influence.
Performance related remuneration in the
form of share options, bonus programmes
or similar, to executive personnel is subject
to an absolute limit.
13. Information and communication
Annual and interim reporting
The Group’s financial calendar and presenta-
tions are published on the company’s website
(atea.com/investors/financial-calendar/).
The Group presents its interim accounts
on a quarterly basis and its annual accounts
during the month of February. The complete
financial statements and Board of Direc-
tors report are published on the company’s
website at least twenty-one days prior to the
General Meeting.
Other market information
The Group aims to increase investor aware-
ness of Atea through an open, transparent
and reliable information policy. In this
manner, the Group seeks also to promote
the liquidity of its shares and ensure that its
share price reflects the fair value of Atea.
Open investor presentations are arranged
in connection with the publication of the
Group’s annual and quarterly results. The
Chief Executive Officer and Chief Finan-
cial Officer present the financial results of
the group and each business segment, and
present additional information which is
relevant to the company's future prospects.
When publishing the preliminary annual
accounts and the interim reports, the
Group is holding public presentations that
are simultaneously broadcasted through
webcasts. Investor-related information and
presentations associated with the annual and
quarterly results are available on the Group’s
website, atea.com/investors.
In addition to the publication of financial
results, the Board of Directors has author-
ized the Chairman, CEO and CFO to
conduct regular meetings with analysts and
investors. This improves communication
and increases the Group's understanding of
which matters are of particular concern to
shareholders. During meetings, care is taken
to ensure equal treatment of all investors.
Caution with regard to distribution of non-
public information is exercised in investor
meetings outside of public presentations.
In the event of an emergency or serious
incident at Atea, the Group has established
a crisis management plan which provides
additional governance and procedures on
all communications from the Group.
14. Take-overs
The company’s Articles of Association do not
contain any defence mechanisms against the
acquisition of shares, nor has any measures
been taken to restrict the opportunity to
acquire shares in the company. In the event
of a takeover offer, the Board of Directors
will seek expert advice in order to comply
with applicable rules and regulations and
will otherwise act in a manner to ensure
equal treatment of shareholders, seek to
avoid that the company's business activities
are unnecessary disrupted and to ensure
that the shareholders are given sufficient
information and time to consider the offer.
The Board of Directors will not seek to hinder
or obstruct take-over bids. In the event of a
take-over bid for the company, the Board of
Directors will seek to comply with the NUES
recommendations, including obtaining a
valuation from an independent expert and
making a recommendation to Atea’s share-
holders regarding acceptance of the bid. The
Board of Directors will ensure that share-
holders are given sufficient information and
time to form an opinion on an offer.
15. The Auditor
The Auditor’s relationship with
the Board of Directors
The auditor participates at the Board
meeting where the annual accounts are
discussed. At this meeting, the Board of
Directors is briefed on the annual accounts
and any matters of particular concern to the
auditor, including matters where there has
been disagreement between the auditor and
the executive management of the company.
In order to strengthen the board's work on
financial reporting and internal control, the
auditor is required by the EU's Audit Regula-
tion to submit an annual additional report
to the audit committee in which it declares
its independence and explains the results of
the statutory audit carried out by providing
a range of information about the audit. The
auditor has regular contact with the Audit
Committee during the audit process so that
the Audit Committee can fulfil its oversight
responsibilities. At least once a year the
auditor presents to the Audit Committee
the main features of the audit carried out in
respect of the previous accounting year, and
a review of the company's internal control
procedures, including identified weaknesses,
if any, and proposals for improvement.
The Board of Directors and the auditor meet
at least once per year without management
present.
The use of the external group auditor for
advisory services, tax services and other
services outside the ordinary audit scope
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
shall be pre-approved by the Audit Commit-
tee. The external Group auditor is responsi-
ble for reporting such services to the Audit
Committee and to perform an ongoing
assessment of independence. Furthermore,
the independence of the auditor is continu-
ously monitored by the Audit Committee.
Auditor's relationship to the
corporate management
Deloitte has been the company’s auditor
since 2006. In 2021 the Auditing partner
changed according to normal rotation rules.
In addition to ordinary auditing, the audit-
ing firm has provided services related to
accounting, tax and reporting. Reference is
made to Note 8 to the annual accounts. The
corporate management holds regular meet-
ings with the auditor. In these meetings the
auditor reports on the company’s account-
ing practices, risk areas and internal control
routines. The auditor’s remuneration is
approved by the company’s General Meeting,
including a breakdown of remuneration
between auditing and other services.
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance
Holding
Atea ASA
Box 6472 Etterstad
Tel: +47 22 09 50 00
Org.no 920 237 126
investor@atea.com
atea.com
Norway
Atea AS
Karvesvingen 5
Box 6472 Etterstad
Tel: +47 22 09 50 00
Org.no 976 239 997
info@atea.no
atea.no
Sweden
Atea AB
Kronborgsgränd 1
Box 18
info@atea.se
atea.se
Denmark
Atea A/S
Lautrupvang st. 6
Tel: +45 70 25 25 50
Org.no 25511484
Finland
Atea Oy
PL 39
customercare@atea.fi
atea.fi
Lithuania
Atea UAB
Tel: +370 5 239 7899
Org.no 122 588 443
info@atea.lt
atea.lt
Latvia
Atea SIA
Unijas iela 15
Tel: +371 67 819050
Org.no 40003312822
info@atea.lv
atea.lv
Estonia
Atea AS
Järvevana tee 7b
Tel: +372 610 5920
Org.no 10088390
info@atea.ee
atea.ee
Group Logistics
Atea Logistics AB
Nylandavägen 8A
Box 159
customer.care@atea.se
Group Shared Services
Atea Global Services SIA
Org.no 50203101431
rigainfo@atea.com
ateaglobal.com
Group Functions
Atea Group Functions A/S
Lautrupvang st. 6
Org.no 39097060
AppXite
AppXite SIA
Matrozu st. 15
Org.no 40003843899
info@appxite.com
appxite.com
Content The Business Board of Directors Report The Board Shareholder Info Atea Group accounts Atea ASA accounts Corporate Governance