Financial Statements Bulletin February 2016

Transcription

1 Financial Statements Bulletin February 216

2 Forward-Looking Statements Certain sections of this presentation contain forward-looking statements based on the Affecto s current expectations, estimates, projections and assumptions. Words such as 'forecasts', estimates, expects, plans, and variations of these words and similar expressions are intended to identify forward-looking statements, which include, but are not limited to, Affecto's performance and profitability, market growth and industry developments. These statements involve certain risks and uncertainties, which are difficult to predict, and therefore actual future results and trends may differ materially from what is forecast in forwardlooking statements. Affecto undertakes to update such statements with respect to new information and future events only within the limits of its statutory obligation to disclose information.

3 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Overview to Q4/ Net Sales (M ) Order intake increased Denmark and Sweden main contributors to the increase, other segments close to 214 levels 2 1 Net sales 31.3 M (32.8 M ) Net sales decreased -5% Increases of 12% in Denmark and 3% in Finland Decreases of 17% in Baltic, 15% in Norway, and 1% in Sweden Operational segment result (M ) Operational segment result 3.2 M (3.9 M ) Profitability continues high 15% in Baltic, 13% in Finland, 11% in Sweden, 1% in Denmark and 5% in Norway Operating profit 3.2 M / 1 % (-3.7 M / -11%) Operating profit (M )

4 Overview to Year Net Sales (M ) 1 Market established in the new business technology & analytics areas, slight improvement of demand in traditional IT business market Core services evolution to meet changing customer demands. Significantly increased collaboration and sharing resources between countries. 5 Business development and customer prototyping progress in new industry segments: Affecto Industrial & B2C Order intake decreased Order backlog increased This is mostly due to improved sales performance year-on-year during H2 Net sales 116 M (123 M ) Operational segment result 7.5 M / 6% (1. M / 8%) Operating profit of 7.5 M (214:.8 M due to goodwill impairment of 7.4 M ) The Board proposes a dividend of.16 per share Operational segment result (M ) Operating profit (M ) -4

5 Income Statement (1 EUR) 1-12/ / Net sales Other operating income Changes in inventories of finished goods and work in progress Materials and services Personnel expenses Other operating expenses Other depreciation and amortisation Operational segment result IFRS3 amortisation Goodwill impairment Operating profit/loss Net financial income/expenses Profit before income tax Income tax Profit for the period Personnel costs have reduced following restructuring activities and lower headcount levels vs 214 in Finland and Sweden Material and services costs have decreased in line with lower license and maintenance net sales Other operating expenses in 215 include the fraud incident expense of 1. M No IFRS3 amortisation, as this was completed in 214 Goodwill impairment of 7.4 M in 214 Basic EPS

6 Balance Sheet (1 EUR) 12/215 12/214 Property, plant and equipment Goodwill Other intangible assets Other long-term assets Long-term assets Receivables and inventories Cash and cash equivalents Current assets Interest-bearing net debt -3.9 M (1.1 M ) Gearing -6% (2%) Equity ratio 58% (55%) 18.5 M existing loan to be refinanced by the end of Q2/16 Total assets Equity for shareholders Non-current liabilities Current liabilities Total equity and liabilities

7 Cash Flow (1 EUR) Cash flows from operating activities Profit for the period Adjustments to profit for the period Change in working capital Interest and other financial cost paid Interest and other financial income received 5 68 Income taxes paid Net cash from operating activities Positive change in working capital compared to 214 In 214 goodwill impairment affected to profit and adjustments Net cash used in investing activities Net cash from financing activities (Decrease)/increase in cash and cash e

8 Ownership Structure 29 January 216 Registered owners % 1 Cantell Oy 1,2 % 2 Lombard International Assurance S.A. 6,5 % 3 Danske Invest Suomen Pienyhtiöt Fund 6,4 % 4 Säästöpankki Kotimaa Fund 5,8 % 5 OP-Suomi Pienyhtiöt Fund 4,7 % 6 Evli Suomi Pienyhtiöt Fund 4,7 % 7 Ilmarinen Mutual Pension 4, % 8 OP-Suomi Arvo Fund 3,4 % 9 State Pension Fund 2,7 % 1 Taaleritehdas Arvo Markka Fund 2,6 % No major shareholder flagging notifications in 215 Treasury shares 3.8% 22.5 million shares in total Other shareholders 45,3 % Treasury shares 3,8 % Total 1, %

9 Business Areas - Finland Q4: Order intake moderately decreased and order backlog below 214 level Net sales 14.3 M (13.8 M ), 3% increase Operational segment result 1.9 M / 13% (1.7 M / 12%) As a major win, Affecto continues to operate the YLE Areena and Yle.fi service during years : Order intake decreased Net sales 49.5 M (5.6 M ), 2% decrease. Operational segment result decreased to 3.5 M / 7% (5.4 M / 11%) Renewal actions and refresh of the organization produced recovering sales in H2 In Q3 restructuring activities were completed as well as increased sales focus actions were initiated. These actions had a positive impact in Q4 A restructuring provision of.8 M affected the Q3 result Growing market and increased competition in new business technology & analytics areas. Slow development of demand in the traditional IT market. Net Sales Operational Segment Result ,5 2, 1,5 1,,5, -,5

10 Business Areas - Norway Q4: Order intake slightly decreased, mainly due to lower license sales Net Sales Net sales 5.5 M (6.5 M ), 15 % decrease Operational segment result.3 M / 5% (.9 M / 14%) Postponed customer projects were started which produced improved utilization and consulting revenue. The license revenue decreased. Order backlog remained above last year 215: Order intake decreased Net sales 21.1 M (25. M ) 16% decrease Operational segment result 1.5 M / 7% (2. M / 8%) Large long term customer wins and investment into new skills. Postponed customer projects in H2 Norway has highest people engagement in Affecto Order intake and net sales were negatively impacted by the weakening NOK Growing interest in the new business technologies & analytics. Improvement in demand in traditional BI solutions and Master Data Management. Operational Segment Result ,2 1,,8,6,4,2, -,2 -,4

11 Business Areas - Sweden Q4: Order intake increased Net sales 4.8 M (4.8 M ), 1% decrease Operational segment result.5 M / 11% (.3 M / 7%) Actions continued in building focus industries as well as strengthening the team with new industry/technology hybrid profiles Order backlog was moderately above 214 level 215: Order intake decreased Net sales 18.2 M (2. M ), 9% decrease Operational segment result.7m / 4% (.3 M / 2%) Focused development actions during the year and record high order intake in Q4 helped to improve the operational segment result compared to 214 High people churn in the beginning of the year as well as weak sales impacted the profitability in Q3 Net Sales Operational Segment Result,6,4,2, -,2 Håvard Ellefsen started as Managing Director, Scandinavia & Partners in October Growing interest in the new business technologies & analytics. Improvement in demand in traditional BI solutions and Master Data Management. -,4

12 Business Areas - Denmark Q4: Order intake increased Net Sales Net sales 3.2 M (2.8 M ), 12% increase Operational segment result.3 M / 1% (.1 M / 5%) Business recovery actions continued in Q4, resulting into improved order intake and profitability Order backlog was above last year s level 215: Order intake increased Net sales 11.3 M (12. M ), 6% decrease Operational segment result.4 M / 3% (.9 M / 7%) Q3 and Q4 improved sales performance resulted into higher revenue and profitability in Q4 Weaker consulting revenue in the beginning of the year, combined with reduced license sales resulted into lower profitability in Q1-Q3 Håvard Ellefsen started as Managing Director, Scandinavia & Partners in October Growing interest in the new business technologies & analytics. Improvement in demand in traditional BI solutions and Master Data Management. Operational Segment Result,7,6,5,4,3,2,1, -,1 -,2

13 Q4: Order intake moderately decreased Net sales 4.7 M (5.7 M ), 17% decrease Operational segment result.7 M / 15% (1.3 M / 23%) Improved performance in Estonia continued in Q4 Order backlog was below last year s level Business Areas - Baltic Net Sales : Order intake below last year s level Net Sales 2.1 M (19. M ), 6% increase Operational segment result increased significantly 3.9 M / 2% (2.9 M / 15%) Good performance in Estonia. Baltics based near-shoring business was increased across all markets. Insurance business key projects completed during 215. Revenue and profitability return towards sustained level by end of the year. Estonian market demand continues strong. Lithuanian market neutral. Insurance market demand continues to be influenced by e.g. weakening ZAR in the South African part of business. Operational Segment Result 2, 1,5 1,,5, -,5-1,

14 M M Q4 Segment Comparison Net Sales 16 Net Sales By segment 1-12/ /14 Growth Growth Finland % % Norway % % Sweden % % Denmark % % Baltic % % Other Total % % Q4/14 Q4/15 By business line 1-12/ /14 Growth Growth 2 Information Management Solutions % % Karttakeskus GIS business % % Finland Norway Sweden Denmark Baltic Other Group total % % Result By segment 1-12/15 Margin 1-12/14 Margin 215 Margin 214 Margin Finland % % % % Norway % % % % Sweden % % % 34 2 % Denmark % % % % Baltic % % % % Other Operational Segment Result % % % % IFRS3 amortisation Goodwill impairment Operating profit % % % % 2, 1,8 1,6 1,4 1,2 1,,8,6,4,2, Operational Segment Result Finland Norway Sweden Denmark Baltic Q4/14 Q4/15

15 Business Development Actions Affecto Industrial Affecto Industrial growth program was launched in Q1/215. The program builds on top of our existing strengths in the areas of our industrial customers product development and manufacturing processes for manufacturing, technology, energy and process industries Under this program, the Company builds new business value for its customers through e.g. IoT, soft sensors, machine learning and analytics capabilities In Q3 and Q4 we have built numerous prototypes with our customers. In Q4, we have also started projects with our industrial customers R&D organizations building new digitally enabled products for their customers This program has had a positive effect also on core business by creating new value and new services around Affecto s core solutions Affecto B2C Central to digital transformation is the progressively growing use of information and analytics to make better decisions and to automate decision making. Analytics is the home ground of Affecto. We will exploratively develop these emerging business technology areas and connect them to our Core. (Affecto s strategic update 12 th of February 215) Affecto B2C growth program was launched in Q3 / 215. The program builds on top of our existing strengths in the areas of our B2C customers front-office and digital consumer analytics. Focus industries are consumer goods, retail, media, telecoms and healthcare industries Under this program, the Company builds new business value for its customers through e.g. advanced behavioral & video analytics, machine learning and consumer 36 sensing capabilities First customer prototypes in e.g. consumer video analytics were launched in Q4. Also, new opportunities were built e.g. in the area of marketing automation technology (platform, implementation & integration)

16 Guidance

17 Guidance Affecto expects its net sales to stay at the same level or grow slightly and its operating profit to grow in 216. The company does not provide an exact quarterly guidance for revenue or operating profit development, as single projects and timing of license sales may have large impact on quarterly sales and profit. We will organize a Capital Markets Day in May 216 to present further information of Affecto and our direction.

18 Thank you.