Good morning out there. My name is Per Ol Nistau, Group CEO of Ariba Tech. Together with me today, I have Garru Hansen, our Group CFO, and we are here to present our Q1 financial reporting. First, I would like to give you an introduction. Back in After this, we have to get through 6 acquisitions, our Group CFO, 2 more acquisitions in the process.
Integra, UK based consultants. I would like to give you a and also the Spanish based beautiful Hyundai. Back in 2015, out of this, we have built and you, powerful, experienced management team. And we are day by day taking new steps in integrating these organizations into 1 Arribatec. We are cross selling, we are expanding geographically, and we are really capitalizing on the platform we have built through these acquisitions.
Also moving our customers to cloud He's highly on our agenda, and we have proven successful also within this area in recent periods. All in all, we have signed more than 100 contracts globally, which makes me extremely proud of what this combined team that we have built through all these acquisitions have managed to deliver. AribaTec 1 solution. What is 1 solution? 1 solution is a new way, disruptive the way business softwares are delivered and deployed in the markets.
Everybody in the market today talk about cloud, cloud solutions, and we also believe that the future is cloud. We although believe that there will be hybrid solutions for many years to come. And we also see that there are More and more complexity brought into all companies globally with a set of different applications to cover different processes. And hence the complexity in all companies are getting more and more complicated. This interferes in also tight system integrations, etcetera.
What we do is that we take this complexity out from our customers. We provide some systems, we take other systems that they have, we integrate them, We deploy them and we deliver this as a service, meaning that the customer is released from the pain with Complicated System Landscapes, as we take the responsibility as a professional part and delivering this as one solution. All our acquisitions are vital to support our 1 solution strategy. Individually, they are delivering vital competence systems or solutions for us to be able to penetrate vertical markets delivering holistic solutions. Being able to take such control over such complexity on behalf of the customers delivering this as a service, We need full control on the system side, integration, but also infrastructure, cloud, everything.
That's why we have done acquisitions within this area of cloud. We have built we have bought companies having specialized operational vertical software and combining this with our strategic partnership on the ERP side. Combined, we can deliver fully integrated set of business applications in cloud, deployed, governed, fully responsible by us for a predictable price, which no one else in the market are offering today. So how are our strategy received in the market? I'm really proud to present our first figures.
Revenue growth of 177% from NOK 35,800,000 to NOK 99,200,000. Further to that, we also had an amazing period where we have grown the EBITDA from SEK 4,300,000 to SEK 10,300,000 adjusted. Adjusted means excluding M and A one off costs. Also another important KPI our annual recurring revenue, ARR, which we have grown by 5 60 percent up to 31,000,000 Kroner, within this quarter only. If you look at this from a pro form a perspective, much to the ARR, but we have plans and we have set a strategy on how we are also transforming their business to contribute in to building our ARR.
For us as an international company, it's important to also show that we are capable on one side, but also are delivering and expanding internationally. We still see that Norway has a big part of the revenue, but roughly 33% of the business is outside Norway. In Norway, due to, of course, several of the acquisitions are reside in Norway, we had a huge growth in Norway. But in the EU and in the U. S, we see a strong organic growth.
In U. S. Alone, In the EU, we have 124%, including the acquisition of IV. But excluding looking at pure organic growth, we see organic growth of 73%. To me, as a manager responsible for this company, how my team have performed, I can't say anything else that I'm super happy and really proud and it is a great pleasure presenting these figures to you as investors of the company.
To give you more details about our financial performance, I will give the word to Garo Hanssen, our Group CFO.
Thank you, Peroni. As Peroni I showed earlier, our revenue for Q1 ended at NOK 99,000,000 which is a 177% increase year on year. If we break this down by region, we see more than 3x volume from Norway in Q1 this year compared to last year. And as you can see from the chart, We did almost NOK 67,000,000 worth of revenue for Norway only. Region Europe had a 127% growth and ended at €25,000,000 in regional income, while U.
S. Increased by 100 percent from EUR 4,000,000 in 2020 to EUR 8,000,000 in Q1 this year. If we break this down by service, we see a different picture. We have, over the last year, been pushing pretty hard on driving up the annual recurring revenue. And we now clearly see the effect in the financial performance of the both from this push and for the group in total.
ARR is pretty important for us as it gives us visibility for cash flow for the next months years ahead. And it also reflects that our concept of solution as a service actually gains acceptance among our clients and in the marketplace at large. The graph shows that we have an ARR for the quarter of nearly NOK 31,000,000 And this is a significant growth compared to the SEK 4,700,000 a year ago. The services revenue is €60,000,000 That is a 100% growth compared to the same quarter last year. And lastly, our one off services or one off sales, mostly consisting of license sales, is up to CHF 7,500,000 which is a CHF 5,500,000 increase from last year.
Also, we want to show you here how the call it the old AribaTek organization has performed and also how much the companies that we have acquired during the quarter or 2 quarters have contributed to our growth. In Q1 2020, Arriba Tech had a revenue of €36,000,000 almost, while we now are at 41.8 So a 17% growth there. However, the acquired companies delivered NOK 57 million or more than NOK 57,000,000 of the total revenue for the quarter. So for us, that means that we have done good acquisitions, be buying well functioning companies that delivered the goods from the get go. Our total balance sheet at the end of the quarter was NOK 525,000,000 Norwegian krone.
With total equity of €357,000,000 and a cash balance of €92,000,000 Looking at the assets first, to the right of the slide, we see Goodwill of SEK183 1,000,000 which all stems from the 6 companies that we have acquired. We don't buy much hard assets. We rather buy people, software and customer relationships. And customer relationships and software are both recorded and categorized in the account as intangibles. And they account for NOK 34,000,000 and NOK 65,000,000, respectively, out of the total of NOK 99,000,000.
Other non current assets of NOK 39,000,000 consists of right of use assets, PPE and deferred tax assets. Trade receivables is split fifty-fifty between old RivoTech and acquired companies. So we haven't seen any significant development within the account receivables in the company. Other current assets is IFRS 16 related contract assets and other accruals. And finally, as I said, we have CHF 92,000,000 worth of cash in the group as of the end of the quarter.
Compared to year end 2020, Our total balance sheet increased by some NOK 110,000,000 And as you can see, the shift Between €188,000,000 in cash to €183,000,000 in goodwill represents the acquisitions that we have made. And the balance sheet reflects This acquisition is at the end of Q1. If you shift to the left side of the Slide here and look at liabilities and equity. We can see that Arrivatec had a total equity of EUR357,000,000 at the end of March, and an equity ratio then of 68%. The only bank debt that exists in the company is Three small credit facilities that totals NOK 11,000,000 as of end of the quarter.
50% of the current liabilities in our balance sheet came with the companies that we have acquired. So there is no significant development within the Ola Ripate Group in that category either. Moving on to the cash flow statement. During Q4 of 2020, AribaTech raised NOK CHF235,000,000 in gross proceeds through share issues. In addition, 3 acquisitions closed in Q4 last year, where SEK65 1,000,000 was settled in cash and the targets brought with them in CHF 12,000,000 in cash at closing.
So looking at the cash flow for the quarter for this year Q1 this year is pretty straightforward. During the quarter, free cash flow from operations were negative by SEK 6,000,000. This is mainly due to the fact that Working capital developed negatively, both from AP and AR standpoint. We Closed 3 acquisitions in Q1, and we partially paid Those acquisitions by cash, CHF 101,000,000 NOK in cash and the rest was settled in shares. However, also these companies brought cash with them at the closing date to a total of CHF 21,000,000.
So all in all, cash flow or net cash flow from investing activities was negative by CHF 88,000,000 in last quarter. Ended the year with €91,000,000 in cash, that after financing Activities required SEK 3,000,000 which is basically repayment of some of the drawdown facilities we have and a small amount of interest payment on that. Lastly, I want to talk a little bit about the equity development for the group. AribaTec pre acquisitions, meaning back to October November last year, we had a total equity of CHF 271,000,000 As you now know, we acquired 3 companies During the Q4, Fassil Mikoshi and Init. And we issued shares to the sellers.
However, while the acquisitions were taken into our books In Q4, the shares to the sellers for those acquisitions were not issued until we got into Q1 this year, which means that we had a total equity by the end of 2020 of €316,000,000 And then we have closed 2 additional acquisitions during this quarter, whereby Qualisoft required us to issue shares for €31,000,000 and Max it, where we haven't issued the shares yet, requires another NOK 10,000,000 worth of shares being issued. All this is already reflected in our balance sheet, even though the shares have not been issued. So at the end of the quarter, we have a total equity of €357,000,000 Additional to this, looking a little bit forward, We have a merger between AribaTek AS and AribaTek Solution ASA that will be undertaken in June, whereby Ariba Tech Solutions ASA will issue some 125,000,000 new shares to the existing or some of the existing shareholders in Adipadec AES. Once this is done, in the middle of August, all shares of Arybatec AS will be fully owned by Arrivatek Solution ASA. That concludes the review of the financial numbers from the Q1 report.
Thank you. And then Peroni, you take it from here.
Thank you, Gary. As a part of our One Solution strategy, also the fact that we have acquired a lot of companies, We are rebranding the company from Arybatek Solutions to Arybatek Group. We have also taken a lot of steps internally in integrating and delivering on this one solution strategy combined with all the acquisition companies that we have taking on board over the last few months. We have in other words All these individual companies with different service solution offerings and built a global Solution or a global organization and divided the total group into 5 principal business areas. These five business areas are Business Services, which is principally the old Ariba Tech, consisting of ERP, BIM Analytics and Research Management as well as Software Development and DevOps Services.
We have also the Enterprise Architecture Business Process Management, which is derived from the acquisition of Qualisoft. Cloud, it's our cloud service offering, consisting of the acquisition from INIT, in its operations and Mikrosy in Bergen. Marine is our offering for the marine industry derived from the acquisition of IB and Hospitality, consisting of our own certified Level 2 prior to the acquisition of Fasil, which is also then merged into our vertical offerings within the hospitality business. All This new strategy, this new organization have formed also the basis for our new global management team, consisting of 5 different business area managers, in addition to that we also added geographical country managers for Sweden and the U. S.
With this, we have secured a common management platform, a common management team to drive the development of the company in the same direction of one solution and to deliver on that strategy. We have also, during this time, expanded geographically into 6 different new countries: Singapore, Dubai, France, Netherlands, UK and Germany. In this period, we have also delivered and managed to win significant new contracts in everything from Magdalene Partners, Alten, French, Spanish, now they are German, UK, Dubai, etcetera, contracts, which is significantly and have also then fueled the creation of these companies and also a solid platform for securing business in these countries individually. This gives us the following current global presence. We are operating out of 15 different countries.
As we saw earlier today, we have good activities in Europe, in U. S, And we are also expanding beyond that with the establishment of Dubai, Singapore, etcetera. We have more than 350 people in the different offices globally, and we are serving more than 850 large enterprise customers. So what is very important for us is to fuel the organic growth, which we have now built through the acquisitions. We have a fantastic platform, and we see a strong spirit in the team to deliver on this new strategy and to work together as one company.
We have, as I said, a strong platform for fueling further growth. We will combine the growth with new acquisitions, but we need to prove ourselves and to the market that we are also capable of growing organically. We will keep focus on cross selling and up selling. We will focus on Moving that forward, it's very important to really capitalize on what we have built so far. We see a great potential to grow further.
And this needs to be taken care of from an organizational perspective. Further to this, we are also seeing that we are succeeding in the market communication. Our new strategy and communication, Delivering one solution is also extremely important to continue communicating to the market to get their acceptance to fuel this growth organically. To show you a little bit what we have done as well from an organizational or organic growth perspective. We have closed a lot of deals, as I said earlier, but many of these give you some examples within each and one of the new business areas.
In Enterprise Architecture and Business Process Management, we have Secured deals, among others, with Aker BP, Orenergy, Gasco and so on. In the maritime sector, we have secured with MSC, a Mediterranean Shipping Company, which is by far the we're one of the largest container ship companies and also a major cruise liner in the based in Europe. In the business area, we are also winning deals both in France, Germany, Sweden, Norway. And also in the BI segment, we have signed significant deals, among others, with in Norway, a frame agreement, 1 in a public tender, worth up to NOK 20,000,000. On the DevOps side, we are also delivering the summer campaign for Circle K, among others.
On the cloud area, we have secured Innovation Norway, Brabank and so on, as also significant wins during this period. In hospitality, we still invest, but we see a great potential. We have signed multiple deals of strategic interest. We have continued developing the solution, and we are ready when the market is He's coming back again now to deliver amazing solutions to revitalize the hospitality industry. To really fuel the organic growth, we see a great need for continue investing in our sales activities.
We need to increase the sales capacity, presale capacity, but also continue developing our one solution concept. In that, we do things in a different way. We are building new practice on how things are implemented, how things are developed, how things are customized and to secure a cost efficient model to scale this in a cost efficient way moving forward. When it comes to M and A, as I said, we will, of course, continue acquiring companies in combination with a strong, strong focus on the organic growth. We have Four different pillars in our M and A strategy.
1 is solutions and services. As you probably understood, the one solution concept is very tightly linked to what type of solutions, what type of services we are offering. We look at solutions where we can deliver more to our existing customers or getting customer bases where we can go in and take a stronger position into new verticals. To win in the market today, you need to combine technology, services and solutions that is fit for purpose in the different verticals you're operating. That's why we have a great focus on combining our core ERP systems with operational software.
And hence, that's why we have also bought different vertical solutions like IB in the Marine and Hospitality. Geography has been vital to our success so far, and we believe that focusing on covering new geographical areas will be important to support our customers going globally. So but also being able to cover local requirements, legislations, etcetera, and holding that As a competence it's very important to be able to deliver one solution with quality. Then we also need to to these type of elements into our service offering. But we also see that spreading a little bit geographically will give us Stronger footprint, of course, but we will also be more unique than most of our peers are able to offer today.
Technology, as a technology company, this is also very important. And the totality we are offering, technology is the backbone in everything we do. Of course, being in front of the technological development is important, but we also see how Technology can provide us tools and solutions to optimize, standardize and also secure that we can deliver competence or competitive solutions moving forward. Of course, on the competence side, as a competence organization, we win deals every day. We satisfy our customers on daily basis because we have a strong competence.
We are unique in many areas. We have vertical competence, technology competence, integration competence, etcetera. And we are looking at fueling and adding more competent people that can continue and contribute to the organization and to also continue evolving what we are delivering of Services and Solutions by capitalizing on these unique I think that was it for me today. Remember, AribaTek, one solution. Now we will take a short break and then we will be ready for Q and A.
So please feel free to post your questions in the channels that has been informed in the invitation. Welcome back. We are now ready to answer some questions. We have received some on our different channels. So, Gary, can you please
Sure. Yes. So the first thing you've got a question about is Geographical areas which we're going to prioritize going forward. What's our comment to that?
As we can see from our last acquisition, U. K. Is, of course, of vital importance for us. But we have, generally speaking, a wish to deliver on becoming a true global player, which also means that we are expanding into new geographical areas, which we have also partly communicated through the setup of Dubai and Singapore. But U.
S. As well is a very important market for us. And we aim to to continue growing there both organically and also exploring M and A activities in that region. Yes.
Good. So Another question here is about cloud and cloud solutions. What is it really?
That's a good question. Cloud is actually many things, but Cloud is how you deploy your business software. And we as I said in the presentation as well, we need to control the entire value chain from where things are deployed. So that's why we also acquired Innit and Mikroce to get competence and capacity to drive cloud journeys and cloud migration strategies for our customers. But this means that we are actually taking control Either we are doing it in Azure, AWS or even in our own data centers, how we are deploying and hosting Business Applications, to secure that we can control the entire value chain from how it's installed, deployed, operated and also be able to customize, integrate the applications to deliver on this one solution strategy.
Yes. And then thank you. And then you have a question more to the heart of how and what we are doing. The question is, what is the estimated length of the contracts that we win? And There's also a question on margins.
But first, what's the length of the contracts?
We signed different type of contracts. The public tender contracts that we are winning is typically 4 years plus 2 or 4 plus 1 plus 1. The research institute contracts we have signed, for example, they are 5 years long, but normal standards is between 3 to 5 years as the normal.
And then there's a question about The recent announcement we made about Integra. And the question is, what's the rationale and how do we see it fit into our suite of services and solutions.
Integra is a very interesting acquisition. First of all, we are covering a new geographical area. They are very complementary but also similar to the old part of our Evotec with good presence in the local in the U. K, but also serving a lot of international customers and have long experience in delivering Business Software on a global scale. Further to that, it's also important for us to continue growing our partnership with Uniphore.
And with Integra, we will be by far the largest in the entire ecosystem globally. And we see a great potential combining forces, both from a solution, geographical, but also partner and solution perspective.
Okay. Next one is back to the contract and projects. Is there a maintenance cost During the contract or does this become extra income seen from a customer perspective? Yes.
The maintenance part, I mean, Our contracts, if you look at Sola's concept, it combines both our own software, 3rd party software, infrastructure, everything. And the part that belongs to our 3rd party software, we have another initial investment that we are discounting over the contract period, plus that we also get running maintenance that will also continue after the 1st 3 or 5 year period that we have committed to the in the contract. With that said, This model as well, a few secures that we are actually accelerating the margin after the contract ending If we deliver good quality and the customers will continue after the 1st initial contract period, the margin is accelerating on our side.
Right. Next here is about the acquisitions and synergies. So how will acquired companies perform better with us than without us?
Yes, first of all, through the acquisitions, we have become also Tier 1 Microsoft partner. So we are seeing a lot of what gives us synergies on the system side, also on the license side for internal use. We have centralized now everything in with a common SPOC center out of all the in it. And but we also see that we are based on our strategy and our approach, we are also able to transform the acquisitions into more ARR and SOLAS concepts. And the idea behind all this is that all these acquisitions are contributing either to capacity, geographical presence or even solutions that we can also upsell and extend our one solution concept to existing customers.
And I guess also The cross selling between existing unit and new units is driving.
Absolutely. And we saw that earlier as well that We have several good examples already how we are already after a short period of time as a one company able to cross sell and also utilize resources between the different entities and business areas. Right.
That is what has come in so far. We can give it a little bit more time. And if there is nothing else coming in, we will Terminate it from here.
Yes. It's always possibilities as well to send questions to ir. Irtaribotech.com as well.
Very good. Then it's quiet here. So, yeah, we call it today.
Then we wish you all a good day, and we hope that you liked what you have heard today and that we are delivering according to your expectations. And I can guarantee you one thing, we will continue to be dedicated to the business, work hard to generate value for all our shareholders. Thank you.