Healthcare Automotive Industrial Automation Machine & Systems Energy. Annual Results Jan Willem Wienbelt Amsterdam, March 13, 2014

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1 Logistics Healthcare Automotive Industrial Automation Machine & Systems Energy Annual Results 2013 Jos Blejie Jan Willem Wienbelt Chairman and CEO CFO Amsterdam, March 13, 2014

2 AGENDA HIGHLIGHTS 2 OPERATIONAL DEVELOPMENTS 3 ANNUAL RESULTS OUTLOOK AND STRATEGY 5 KEY INITIATIVES 2

3 2013 HIGHLIGHTS (1/2) Revenues 79.5 M (+ 2.1 %) Indirect Costs 16.9 (2012: 19.3 M) Oper. Result 4.9 M (+ 186%) SUBSTANTIAL IMPROVEMENTS VERTICAL STRATEGY PAYS-OFF IMPROVED UTILIZATION + 2% REDUCED INDIRECT COSTS ATTRITION INDIRECT STAFF Net Result M (2012: M) Net Cash Flow 4.3M (2012: -2.2 M) Employees End of Year FTE 751 (2012: 772) 3

4 2013 HIGHLIGHTS (2/2) Revenues 39.6 M (2012: %) Indirect Costs 8.6 (2012: 9.6 M) Oper. Result 1.9 M (2012: 1.4 M) SIGNS OF ECONOMIC RECOVERY NL: LIGHT INCREASING DEMAND GE: HEADING FOR BREAK-EVEN AUTOMOTIVE POSITIVE H2 EFFECT REORGANISATION Revenues 40.2 M (+ 6.2%) Indirect Costs 8.3 (2012: 9.7 M) Oper. Result 3.0 M (2012: 0.3 M) 4

5 MANAGEMENT AGENDA OF 2013 REACHED Improved profitability Major step: operating profit 6.2% (2.2%) All Verticals showed improved performance German activities Break Even Reduced substantially indirect costs Closed 4 offices Reached break-even December 2013 Next step Verticals Major new deals closed Partnerships closed Offshoring/nearshoring for German activities Poland operates as nearshore facility for Germany Polish fte grew to 8% of German professionals Further execute the growth strategy Autonomous growth 2.1% in standstill markets Acquisition announcement 5

6 AGENDA HIGHLIGHTS 2 OPERATIONAL DEVELOPMENTS 3 ANNUAL RESULTS OUTLOOK AND STRATEGY 5 KEY INITIATIVES 6

7 MACHINE & SYSTEMS Revenues up 3.2% to 28.2 M (2012: 27.4 M) of which: 35 % of Group revenues Employees: 282 Average year Trends: EV infrastructure, smart grid issues Operating profit 3.1 M (2012: 2.2 M) Solid year for Machines and Systems Secondment rates are under pressure Focus on seemless execution of projects and services pays off Selection of new business areas in radiotherapy and infrastructure for electric vehicles succesful. Key initiaves: Connected Intelligence, Energy and Healthcare 7

AUTOMOTIVE Revenues 19.1 M (2012: 19.5 M) 5.7% decline in Germany to 13.5 M 9.

6 M 24 % of Group revenues Employees: 189 Average year Eurozone carsales

8 AUTOMOTIVE Revenues 19.1 M (2012: 19.5 M) 5.7% decline in Germany to 13.5 M 9.5% growth in Netherlands to 5.6 M 24 % of Group revenues Employees: 189 Average year Eurozone carsales remain low Trends: EV,Connected Cars Loss of M (2012: M) H1 : M H2 : M Germany heading towards sustainable break-even scenario Appointment new management Increased predictability Reduction indirect costs, Closing of offices Mechatronics: model based development 8

INDUSTRIAL AUTOMATION Revenues increased 9.0 % to 14.6 M (2012: 13.4 M) Operating profit of 0.9 M 18 % of Group revenues Employees: 128 Average year Trends: fast increasing world consumption (2012: 1.

9 INDUSTRIAL AUTOMATION Revenues increased 9.0 % to 14.6 M (2012: 13.4 M) Operating profit of 0.9 M 18 % of Group revenues Employees: 128 Average year Trends: fast increasing world consumption (2012: 1.0 M) IA had a challenging year with higher demand but Pressure on secondment rates Increased number of projects, including learning curve on new technologies Investments in new repeatable solutions to be ready for global deployments Key initiaves: repeatable solutions Domain expertise Food and MES 9

10 LOGISTICS Double digit growth 10.1% to 9.3 M revenues (2012: 8.5 M) 11 % of Group revenues Operating profits amounted to 1 M (2012: 0.2 M) Employees: 83 Average year Trends: Continuous growth in internet sales / drive growth logistics industry segment Logistics signed up breakthrough solutions at reputable customers Cloud services at PostNL Portal solutions at Zuivelhoeve, Fedex, and Iron Mountain Key initiaves: Cloud services simplifying the logistics chain 10

JOINT VENTURES JVs together: 10 % of group revenues JVs together: 77 employees avg yr Stable transport market limited growth opportunities Difficult training courses market with opportunity for ISTQB

11 JOINT VENTURES JVs together: 10 % of group revenues JVs together: 77 employees avg yr Stable transport market limited growth opportunities Difficult training courses market with opportunity for ISTQB Expert Level / International Intraffic had a stable year: revenues increasing with 3.3% to 6.9 M Operating profits amounted to 0.4 M (2012: 0.2 M) Operating in a stable traffic and transport (mainly rail) market Improve Quality Services had a very disappointing 2013: Revenues declined by 9.6% to 3.2 M Suffered from economic circumstances where training courses have been postponed or canceled Operating profit down to 0.2 M Decision to impair goodwill with an amount of 3.4 M 11

12 STABLE CUSTOMERBASE GROUP TOP 10 CLIENTS account for 55% of revenues Healthcare Public Energy 9,2% 5,7% 10,2% High-tech Chemicals 4,8% 6,1% 8,4% 4,2% 3,6% 4,1% 7,6% 4,6% 10,8% 10,9% Traffic & Transport 2013 Other ,5% 6,1% 25,0% 11,7% 16,8% Logistics 24,1% Automotive 15,6% Industry 12

13 BRANDFORT Founded in 1977 with locations throughout the Benelux Medium sized engineering company (250 FTE) (Engineering & Consultancy) (Automotive) (Talent) Project revenues and underlying EBIT ( 000 S) Announced: 24 July Confirmed: 5 February Project revenues 0 EBIT EGM: 11 Feb % shareholders supportive Status: in closing, expected conclusion Q Brandfort shows a stable overall development of project revenues throughout EBIT declined driven mainly by increased indirect costs one-off costs and difficulties to control the cost budget during the implementation of ERP in

14 AGENDA HIGHLIGHTS 2 OPERATIONAL DEVELOPMENTS 3 ANNUAL RESULTS OUTLOOK AND STRATEGY 5 KEY INITIATIVES 14

15 Consolidated profit and loss(1) (x 1,000) Change Revenue Automotive 19,149 20,872-8,3% Logistics 9,319 8,466 10,1% Industrial Automation 14,592 13,383 9,0% Machine & Systems 28,229 27,367 3,1% Improve 3,158 3,494-9,6% Other 5,041 4,247 18,7% 79,488 77,829 2,1% Total operating expenses 77,776 76,117 2,2% EBIT 4,896 1, ,0% Impairments -3,380-3,500 Exceptionals -1,380-2,162-4,760-5,662 Profit before interest and tax 136-3,950 Interest Profit before tax 125-3,889 Taxes 1,202 1,314 Minority interest Net loss -1,095-5, March 2014 Analyst meeting for more information check out

16 Consolidated profit and loss(2) (x 1,000) H1 H2 FY H1 H2 FY Revenue Automotive 9,726 9,423 19,149 9,474 10,004 19,478 Logistics 4,542 4,777 9,319 4,420 4,046 8,466 Industrial Automation 7,220 7,372 14,592 6,951 6,432 13,383 Machine & Systems 13,954 14,275 28,229 14,401 12,966 27,367 Improve 1,643 1,515 3,158 1,898 1,596 3,494 Other 2,511 2,530 5,041 3,086 2,555 5,641 39,596 39,892 79,488 40,230 37,599 77,829 Total operating costs 37,720 36,872 74,592 38,816 37,301 76,117 (OPERATING) EBIT 1,876 3,020 4,896 1, , March 2014 Analyst meeting for more information check out

17 Revenue, operating expenses and EBIT (x 1,000) Change Revenue 79,488 77, % Cost of materials and subcontractors 9,385 8, % Added value 70,103 68, % Operating expenses -Personnel Costs 49,632 50, % - Depreciation % - Other costs 14,974 16, % Total 65,207 67, % (OPERATING) EBIT 4,896 1, % March 2014 Analyst meeting for more information check out

18 Condensed consolidated balance sheet (x EUR 1.000) 31 December December 2012 Assets NON-CURRENT ASSETS Property, plant and equipment 1,162 1,396 Goodwill 13,061 16,441 14,223 17,837 CURRENT ASSETS Trade and other receivables 22,493 22,822 Corporate taxes 391 1,305 Cash and cash equivalents 10,136 5,877 33,020 30,004 47,243 47,841 Equity and Liabilities SHAREHOLDERS EQUITY 30,329 31,546 NON-CURRENT LIABILITIES CURRENT LIABILITIES 15,928 15,522 47,243 47, March 2014 Analyst meeting for more information check out

19 Ratios RATIOS IN % Operating profit excluding exceptionals / net revenue 6.2% 2.2% Net loss / net revenue (1.4%) (6.8%) Net loss / average shareholders equity (3.5%) (15.4%) Shareholders equity / total assets 64.2% 65.9% Personnel FTE as at 31 December Average number of FTEs for year RATIOS IN EUR Net revenue corrected for work subcontracted / average number of employees Operating profit (loss) excl. exceptionals / average number of employees Information per share of a nominal value of 0.10 (in ) Net Profit (Loss) 1) (0.13) (0.61) Shareholders equity 2) Cash dividend 2) ) Based on the average number of ordinary shares 2) Based on number of issued shares at year end March 2014 Analyst meeting for more information check out

20 Pro Forma Consolidated P&L according IFRS 11 Joint Ventures P&L (x 1,000) 2013 Annual Report Excluding exceptional Items* 2013 P&L Adjusted for Intraffic according IFRS 11 Excluding exceptional Items* Effect on P&L Net revenue (5.097) 0 Cost of Materials and subcontractors (1.951) Employee benefit expenses (1.953) Depreciation and amortization (78) Impairment charges Other operating expenses (759) Total operating expenses Operating (loss) profit (356) Financial expenses (11) (17) (7) Financial income PROFIT BEFORE TAXATION Income tax expense (86) NET PROFIT (LOSS) (0) March 2014 Analyst meeting for more information check out

21 Pro Forma Consolidated Balance sheet according IFRS 11 Joint Ventures Assets ICT Group Annual Report Adjustment Intraffic 50% according Consolidation ICT Group Adjusted for Intraffic according IFRS 11 NON-CURRENT ASSETS: Property, plant and equipment Goodwill Financial Assets CURRENT ASSETS Trade and other receivables Income tax receivable Cash and cash equivalents TOTAL ASSETS Equity and liabilities (x 1,000) SHAREHOLDERS EQUITY Attributable to shareholders of ICT Non-controlling interest NON-CURRENT LIABILITIES CURRENT LIABILITIES TOTAL EQUITY AND LIABILITIES March 2014 Analyst meeting for more information check out

22 Agenda HIGHLIGHTS 2 OPERATIONAL DEVELOPMENTS 3 ANNUAL RESULTS OUTLOOK AND STRATEGY 5 KEY INITIATIVES 22

23 OUTLOOK TRENDS @ CRITICAL MASS AND ABILITY TO OPERATE INTERNATIONALLY IS NEEDED TO GAIN MARKET SHARES ECONOMIC CONDITIONS IN THE EUROZONE IMPROVE SLIGHTLY BUT REMAIN CHALLENGING THE INTERNET OF THINGS WILL DRIVE NEW DISRUPTIVE AND INNOVATIVE SOLUTIONS THE ABILITY TO SEAMLESSLY PERFORM PROJECTS AND OFFER SERVICES BECOME MORE AND MORE A COMPETITIVE ADVANTAGE BECOME ATTRACTIVE EMPLOYER OF CHOICE WILL BE NEEDED IN ORDER TO ATTRACT YOUNG NEW TALENTS 23

10 B MES PLM ~ 9 B Smart Charging ~ 5 B Radiotherapy ~ 30 M Cagr: < 5%

24 PRESENCE IN THE GROWTH SEGMENTS AT REPUTABLE CUSTOMERS > 25 B Application Mgt. ~ 41 B Advanced Analytics ~ 36 B Cloud Services ~ 50 B < B < 10 B MES PLM ~ 9 B Smart Charging ~ 5 B Radiotherapy ~ 30 M Cagr: < 5% 5-10% >10% March 2014 Market size (source: Gartner, Forrester, Ovum, IDC)

CONTINUED FOCUS ON REVENUE MIX AND INDIRECT COSTS Indirect costs as % of revenues Continuous improvement of the indirect cost ratio where possible Launch of a Best-in-Class program as prolongation of

25 CONTINUED FOCUS ON REVENUE MIX AND INDIRECT COSTS Indirect costs as % of revenues Continuous improvement of the indirect cost ratio where possible Launch of a Best-in-Class program as prolongation of cost reduction programs Target reduction for 2014 of 2% of revenues 30,0% 25,0% 20,0% 15,0% 10,0% 23,9% 25,7% 21,8% 20,7% 5,0% 0,0% H H H H ICT increasingly focused on projects & services 2011: 100 projects and services contracts 2013: increase of over 20% in the number of projects Target of 55% / 45% envisaged in in 2014 Revenue breakdown by type of service 100% 80% 43% 44% 49% 60% 40% 55% 20% 57% 56% 51% 45% 0% 2011FY 2012FY 2013FY 2014E Secondment Projects & Services 25

26 STRENGTHEN POSITION AS EMPLOYER OF CHOICE Broaden career perspectives ACE, BRACE AND BDF Employees per age category (ICT 2013) 3% Continued development of technical and professional skills Combined best-practices enables higher learning curve 33% 30% < 25 yr 25 - <35 yr 35 - <45 yr > 45 yr Ambition through acting as a high-performance growth firm People are more interested in being part of a growing entity Strengthening of blue-chip client base improves the recruitment profile High customer satisfaction ranking helps 7.1 on scale % Employees per age category (2014 E) 5% Attract and retain the best people 29% Distinctive position enables focus on quality International profile attracts high quality international employees 35% < 25 yr 25 - <35 yr 35 - <45 yr > 45 yr 31% 26

27 @ THE ADOPTED STRATEGY OF ICT WITH FOCUS ON VERTICALS HAS LED TO CLEAR IMPROVED RESULTS ALTHOUGH SOME PARTS ARE STILL IN TURNAROUND ICT IS ENTERING A PHASE OF GROWTH ECONOMIC CIRCUMSTANCES REMAIN VOLATILE COST REDUCTION PROGRAMS CONTINUE 2014 WILL SHOW FURTHER IMPROVEMENT IN OPERATING RESULTS 27

28 Agenda HIGHLIGHTS 2 OPERATIONAL DEVELOPMENTS 3 ANNUAL RESULTS OUTLOOK AND STRATEGY 5 KEY INITIATIVES 28

29 LAUNCH OF @ INTRODUCTION OF BEST-IN-CLASS ORGANISATION ACQUIRE NEW INTERNATIONAL CUSTOMER LOGO S ONE WAY OF WORKING IN THE GROUP WITH REDUCED COMPLEXITY AGILE DEVELOPMENT OF NEW PRODUCTS AND SERVICES IN NICHE BUT EMERGING MARKETSEGMENTS STRIVE FOR OPERATIONAL EXCELLENCE - > IMPROVE CUSTOMER SATISFACTION (2013: 7.1 ON SCALE 1-10) 29

30 Q&A 30

Presentation Annual Results 2012

Logistics Healthcare Automotive Industrial Automation Machine & Systems Energy Presentation Annual Results 2012 Amsterdam, March 25, 2013 Agenda Key results 2012 Operational developments Financial developments