CEO Terje Mjøs. Oslo, 17 July Q Presentation

Transcription

1 CEO Terje Mjøs Oslo, 17 July 1 Q 1 Presentation

2 Q 1 Highlights Profitable and strong organic growth in Sweden +1% YoY o Flat in Norway, +3% in total EBITA NOK 15 million (+9% YoY*) o Including synergy costs of NOK 31 million (5 million) o Fourth consecutive quarter with margin improvement Cash flow still improving o NOK 7 million before restructuring (63 million) (*) Adjusted for NOK 8 million in pension effect in Q 11 Q 1 presentation

3 Key consolidated figures for the Group (NOK million) Q 1 Q 11 1) Change (%) 1H 1 1H 11 1) Change (%) Operating revenue 3,7 3,189 3% 3) 6,61 6,41 4% 3) EBITDA ) % % EBITA before non recurring items ) % % EBITA % before non recurring items ) 4.6% 5.% 4.6% 5.% EBIT before non recurring items ) % % Non-recurring items EBIT ) % % Net financial items EBT ) 7 7 % % EPS Employees 4) 9,64 9,763 9,64 9,763 1) Proforma figures ) Incl positive pension effect of NOK 8 mill in Q 11 and NOK 56 mill in 1H 11 3) Organic growth 4) Actual reported figures Q 1 presentation 3

4 Q 1 Key figures EBITA margin development Percent ,4 Cash flow development NOK million ,8 3, 5,9 4, 4,5 4,3 4,6 Q3 11 Q4 11 Q1 1 Q 1 Comparison with previous year (*) 11 figures adjusted for change in pension Q 1 Q3 1 8 Q4 1 Pro forma figures in Q1 11 Q 11 7 Q Q Q1 1 7 Q 1 Organic revenue growth Group Percent Organic revenue growth Norway Percent Q1 11 Q 11 Q3 11 Q4 11 Q1 1 Q 1 Pro forma figures in 11 Q1 11 Q 11 Q3 11 Q4 11 Q1 1 Q 1 Pro forma figures in 11 Organic revenue growth Sweden Percent Q1 11 Q 11 Q3 11 Q4 11 Q1 1 Q 1 Pro forma figures in 11 Q 1 presentation 4

5 Key financials Working capital CAPEX Percent of revenue , ,8 5,7 6,5 6,7 6,8 Target 13 4% EBITA (NOK million) Percent of revenue Target corridor Q1 11 Q 11 Q3 11 Q4 11 Q1 1 Q 1 Average last 4 quarters Q1 1 Q 1 Q 1 = last 4 quarters Gearing ratio at.76 in Q 1 compared to.55 last quarter Q 1 presentation 5

6 IT-services market with modest growth in Q 1 New signings NOK 3,1 bn in Q 1: o Norway 1,9 million o Sweden 1, million Main signings: o NAV NOK 35 million (BEKK) o SJ and Linkon SEK 3 million o SpareBank 1,several contracts, NOK 15 million o DNB, several contracts, NOK 91 million o Spareskillingsbanken NOK 7 million o St. Olavs Hospital NOK 57 million o Department of Justice NOK 34 million Organic revenue growth compared to market (*) Percent Market actual,8 3, Norway, EVRY Back-log NOK 15.3 bn NOK billion Sweden 1, (*) Source: IDC, outosurcing and project services Later IT Operations Solutions Consulting Q 1 presentation 6

7 Synergy program completed according to plan Synergy program NOK 335 million completed according to original plan o Somewhat below revised plan (36 million), due to one quarter delay on IT Operation s FTE reduction program announced in Q4 11 o Expect to reach NOK 4 million by end of 1 Synergy costs in Q 1 NOK 31 million (5 million) Synergy run rate realized and planned Positive synergy effect in Q 1 of NOK 51 million Expected synergy costs of NOK 35 million in. half of 1 o Including branding cost Q41 Q111 Q11 Q311 Q411 Q11 Q1 Synergies realized (run rate at end of quarter) Synergies planned (run rate at end of quarter) Strech target Q 1 presentation 7 7

8 EVRY Q 1 Segments

9 Highlights & Key figures Solutions Solid organic growth,+13% YoY o Norway 1% o Sweden 18% o Strong growth in Global Sourcing EBITA improvement +4% YoY o o Continue to improve margins in Norway Strong contribution from Global Sourcing Strong performance in Health Care and mobility drives growth in Sweden Several wins in bank segment in Norway NOK million Q 1 Q 11 1) Y/Y Revenue 1,17 1,47 13%(*) EBITA % EBITA margin 8.3% 7.6% CAPEX 7 5 Employees Nordic Global Sourcing *Organic growth 1) Proforma figures,146,138 Margin development Solutions Percent 4,4 6,3, , 8,6 8,7 Target corridor Q 11 Q3 11 Q4 11 Q1 1 Q 1 EBITA-margin - moving average last 4 quarters Q 1 presentation 9

10 Highlights & Key figures Consulting Organic growth +% YoY o Norway -1% o Sweden +5% YoY Hourly rates increased 3% but lower utilisation EBITA improvement +5% o Strong profitability in BEKK o Continue to reduce costs and overhead in low performing units o Sweden effected by one working day less than same quarter last year (NOK 5 million) Bekk signed strategic frame agreement with NAV o Estimated TCV NOK 35 million NOK million Q 1 Q 11 Y/Y Revenue %(*) EBITA 4 4 5% EBITA margin 4.6% 4.3% Utilisation 69,6% 71,9% Working days 6** 6 Employees,55,559 *Organic growth **Sweden one less day Margin development Consulting Percent 5,7 5,7 5,7 6,1 6,3 Q 11 Q3 11 Q4 11 Q1 1 Q 1 EBITA-margin - moving average last 4 quarters Target corridor Q 1 presentation 1

11 Highlights & Key figures IT Operations Segment revenue and margin negatively affected by Enterprise Norway o NOK 46 million in reduced revenue in IS Partner portfolio Positive development in Sweden o EBITA of NOK 5 million (+119% YoY) within target corridor Solid growth in SME Norway and EBITA within target corridor Successful implementation of our industry standard office platform to DNB NOK million Q 1 Q 11 Y/Y Revenue 1,514 1,517 %(*) EBITA % EBITA margin 4.5% 5.% CAPEX Employees,546,68 *Organic growth Margin development IT Operations 9 8 Percent , 5,3 5,4 5,1 4, Q 11 Q3 11 Q4 11 Q1 1 Q 1 EBITA-margin - moving average last 4 quarters Target corridor Q 1 presentation 11

12 Future Proof IT Operations Short-term cost-base reduction The Plan Improve cost efficiency and complete stretched synergy target in 1 Status Hired consultants (plan 1: -1) o Reduction of 5 hired consultants by Q o In process to reach target of 1 by year-end Employees (plan 1: -8) o The planned reduction has been increased to 1 o Completed in Q3 and have full effect in Q4 o One-offs accrued in Q4 11 Offshoring: o see later page Q 1 presentation 1

13 Program for short and long term profitability Building future proof IT Operations EVRY`s key initiatives to support IT Operations target corridor 14-15(*) Global delivery model Change in customer spending Industrilalisation and consolidation More flexible cost structure Agility and time to market for new services Datacenter consolidation Automation Partnerships New cloud based services Traditional IToperation Mixed/ hybrid Cloud computing One -to- One One tomany (*) Capital Markets Day, 16 th February 1 IT spending Q 1 presentation 13

14 Future Proof Operations Global delivery model EVRY completed consolidation of offshore units both in India and Ukraine in 11 Former EDB`s temporary slow down in further offshoring due to security issues have been resolved in H1 `1 Revised offshoring plan ready to execute o Target offshore rate by year end is 13% for Norway and 33% for Sweden o Meeting customer requirements o Optimizing a flexible and seamless global delivery model Target offshore ratio 14 (*) Norway 3% Sweden 5% Current offshore ratio Norway 8% Sweden 8% (*) Based on customer and regulatory restrictions Q 1 presentation 14

15 Future Proof Operations Program in place to deliver growth and profitability Datacenter consolidation o Ambition to reduce from 18 in Norway to a range of 3-5 datacenters in 17 o Entra has crated uncertainty in realising their Greenfield Datacenter plan o As a consequence of this, EVRY has opened up discussions with alternative partners in addition to Entra o Expect to conclude by the end of 1 Automation o Use technology and processes to stream line the delivery of services o Signed agreement with external partner and automation plan decided o First phase successfully completed in H1`1 o Significant further potential, both on cost and quality New Services o Develop the service portfolio including new Infrastructure Utility and Cloud Services Partnerships o Considering several partnerships to complement EVRY s services portfolio Q 1 presentation 15

16 EVRY Q 1 Geography

17 Highlights & Key figures Sweden Continues to gain market share (+1% YoY) o IT Operations +15% YoY o Solutions +18% YoY o Consulting +5% YoY EBITA +18% YoY o Improved margin in IT Operations Solid regional performance Order backlog NOK 3.6 bn NOK million Q 1 Q 11 Y/Y Revenue %(*) EBITA % EBITA margin 6.8% 6.3% CAPEX 3 13 Employees,563,511 *Organic growth Organic growth Sweden Percent Q1 11 Q 11 Q3 11 Q4 11 Q1 1 Q 1 Proforma figures in 11 Q 1 presentation 17

18 Highlights & Key figures Norway Flat revenue development o Solutions (+11% YoY) o Consulting (-1%) o IT Operations (-3%) EBITA NOK 83 million (+4% YoY*) o Improved margin in Solutions and Consulting Order backlog NOK 11.6 bn NOK million Q 1 Q 11 1) Y/Y Revenue,95,94 %* EBITA** % EBITA margin 3.6% 4,7% CAPEX Employees Norway Global Sourcing 4,93,138 5,1 1,85 *Organic growth ** Including pension NOK 8 million in Q 11 1) Pro forma figures Organic growth Norway Percent (*) Adjusted for NOK 8 million in pension effect in Q Q1 11 Q 11 Q3 11 Q4 11 Q1 1 Q 1 Proforma figures in 11 Q 1 presentation 18

19 EVRY Q 1 Market outlook

20 Market outlook Market trends Norway o IDC expects,% market growth in 1 o Generally healthy market conditions, however few new large outsourcing deals o Project services growth expected to grow faster than average Market trends Sweden o IDC expects,6% market growth in 1 o Uncertain market conditions due to weak demand in export oriented industries o Cost focus in banking & finance reduces short term growth but opens long-term opportunities Nordic IT Services Forecast (CAGR) CAGR per country SE: +4,1% FI: +3,5% NO: +4,% DK: +,4% CAGR +3,5% Source: IDC 11 Q 1 presentation

21 EVRY Q 1 Summary

22 Summary Summary Q Profitable and strong organic growth in Sweden +1% YoY o Flat in Norway, +3% in total Improved EBITA +9% YoY(*) Measures taken to improve margin in IT Operations Sharp margin increase in Solutions Outlook Expect modest growth in Norway Slower growth in Swedish economy, EVRY will continue to push for market share (*) Adjusted for NOK 8 million in pension effect in Q 11 Q 1 presentation

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