68 PRESENTED BY CEO ØYVIND ISAKSEN AND CFO ROAR ØSTBØ (1) 21-10-10
AGENDA Q3-10 Highlights Key Figures Regional market update Financial review Outlook Q&A (2) 21-10-10
Q3-10 HIGHLIGHTS Changes in the Slovakia contract having material financial impact Handover responsibility for central system and maintenance of enforcement Reversed income and write down Important orders received Call-off of frame agreement in Brazil - 24 MNOK Tag contract in Australia (RTA) - 16 MNOK Service contract in Australia (RTA) 11 MNOK High market activity related to major 2011 / 2012 cases Sao Paulo (3) 21-10-10
KEY FIGURES Revenues Operating profit Order intake Order backlog 68 MNOK -115 MNOK 96 MNOK 467 MNOK (4) 21-10-10
MARKET UPDATE EUROPE, M.EAST & AFRICA Continuing high market activity Norway, Portugal, France, Sweden, Turkey, Central Europe and South Africa Product sales, infrastructure projects, central system, service and maintenance activities Projects related to truck tolling in Europe New projects will materialise; France, Slovenia, Belgium, Denmark and others Scope could comprise GNSS OBU, back office, enforcement and services Each of these cases represents an opportunity of several hundred MNOK Projects will probably materialise from 2011 and onwards Sweden New market developing Project at Arlanda airport being planned, - bid process expected to be concluded in early 2011 Congestion charging in Gothenburg, - bid in 2011 20-30 ETC state motorway projects foreseen in 2011 and onwards Change orders in Stockholm and ongoing service and maintenance activity (5) 21-10-10
MARKET UPDATE EUROPE, M. EAST & AFRICA, CONT. Portugal Represents a market of high interest 15 th October the two scuts was put into operation, - both delivered by Q-Free New projects for conversion from shadow tolling will follow (Algarve and A25) Potential new contracts may materialise in 2011 Start seeing some increased tag demand South Africa Submitted tender for 1-3 millions tags Longer term new ETC infrastructure projects will materialise (6) 21-10-10 Portugal
MARKET UPDATE ASIA PACIFIC Bangkok Increased ETC penetration implies an attractive tag market going forward New infrastructure projects identified Important tag and infrastructure activity in Australia Indonesia may show opportunities in 2011 Congestion charging being discussed Also exploring new cases in Singapore, Taiwan, Malaysia and India Sydney (7) 21-10-10
MARKET UPDATE NORTH AND LATIN AMERICA Brazil, Chile, Columbia and Ecuador main areas of activity in South America Tag demand in Brazil continues to be high Potential for new frame agreement in Brazil Good activity related to ALPR (software) solution in US Visibility of new projects starts to increase High focus on video based solutions The company s ALPR solution has a strong position (8) 21-10-10
CFO ROAR ØSTBØ FINANCIAL REVIEW Q3/10 (9) 21-10-10
Revenues (MNOK) EBIT margin (%) REVENUES AND EBIT-MARGIN QUARTERLY 2009-2010 300 250 13.5 % 17.6 % 270 6.9 % 5.2 % 0.0% 200 227-50.0% 192 150 170-100.0% 100 50 0 68-169,4 % Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 -150.0% -200.0% Revenues EBIT margin (10) 21-10-10
REVENUES - BUSINESS AREAS MNOK 120 % 108 % 100 % 80 % 60 % 60 % 70 % 61 % 57 % 40 % 20 % 0 % -20 % 33 % 30 % 31 % 23 % 24 % 7 % 7 % 9 % 12 % Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 -40 % Products Service and maintenance Projects -32 % MNOK Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Products 75,0 63,4 58,3 96,1 73,2 Service and maintenance 16,5 20,1 17,0 20,9 16,5 Projects 135,1 186,9 116,3 52,6-21,9 TOTAL 226,6 270,4 191,6 169,6 67,8 (11) 21-10-10
PROFIT & LOSS STATEMENT NOK 1.000 Q3 2010 Q3 2009 30.09.2010 30.09.2009 Q2 2010 31.12.2009 Revenues 67 846 226 624 429 139 534 054 169 647 804 403 Cost of goods sold 66 529 90 350 205 867 209 490 75 079 303 429 Payroll expenses 50 061 41 348 119 150 107 272 29 922 153 712 Other operating expenses 36 340 57 519 147 981 140 352 45 008 212 057 Total opex before depr. 152 931 189 217 472 999 457 114 150 009 669 198 Operating profit - EBITDA -85 084 37 407-43 860 76 940 19 637 135 205 EBITDA margin -125,4 % 16,5 % -10,2 % 14,4 % 11,6 % 16,8 % Depreciation, amortisation and impairment 29 879 6 888 49 041 21 686 10 813 32 461 Operating profit - EBIT -114 963 30 519-92 901 55 254 8 824 102 743 EBIT margin -169,4 % 13,5 % -21,6 % 10,3 % 5,2 % 12,8 % Financial income 7 099 15 668 15 417 29 397 4 410 33 330 Financial expenses -2 299-13 062-10 251-21 117-5 643-26 375 Net financial items 4 800 2 605 5 166 8 280-1 233 6 955 Pretax profit -110 163 33 125-87 735 63 534 7 591 109 698 Profit margin -162,4 % 14,6 % -20,4 % 11,9 % 4,5 % 13,6 % Tax expenses 30 817-6 403 24 309-13 681-2 304-31 549 Profit after tax -79 346 26 722-63 427 49 853 5 287 78 149 Gross margin 1,9 % 60,1 % 52,0 % 60,8 % 55,7 % 62,3 % EPS -1,32 0,49-1,05 0,91 0,09 1,41 (12) 21-10-10
CASH FLOW 300.0 275 250.0 200.0 150.0 164 176 114 100.0 70 50.0 0.0 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 NOK 1.000 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Net cash flow from operations 7 956 34 790-81 839-37 756-30 311 Net cash flow from investments -11 659-29 265-16 975-24 800-13 580 Net cash flow from financing 90 105 619 36 304-49 Net change in cash in the period -3 613 111 144-98 779-62 252-43 940 Cash opening balance 167 084 163 471 274 615 175 836 113 584 Cash closing balance 163 471 274 615 175 836 113 584 69 644 (13) 21-10-10
BALANCE SHEET NOK 1.000 30.09.2010 30.06.2010 31.03.2010 31.12.2009 30.09.2009 Total intangible assets 171 083 181 544 162 865 155 860 140 010 Non current assets 76 275 84 124 82 352 77 599 74 276 Cash & Cash equivalents 69 644 113 584 175 836 274 615 163 471 Other current assets 324 616 375 260 353 091 259 460 200 026 TOTAL ASSETS 641 618 754 511 774 145 767 534 577 783 Total Equity 480 415 564 682 557 236 548 601 411 803 Liabilities 161 203 189 829 216 908 218 933 165 979 TOTAL EQUITY & LIABILITIES 641 618 754 511 774 145 767 534 577 783 Equity ratio 74,9 % 74,8 % 72,0 % 71,5 % 71,3 % (14) 21-10-10
ORDER BACKLOG MNOK 1000 900 884 800 700 600 713 679 609 BUSINESS AREAS 500 467 155 400 300 200 139 173 100 0 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Products Service & Maintenance Projects (15) 21-10-10
CEO Øyvind Isaksen OUTLOOK (16) 21-10-10
OUTLOOK 2010 will be a transition year Important to position the company for 2011 and 2012 opportunities Stable business level expected in the next few quarters Despite of short term challenges Q-Free has a good basis for long term growth Strong references Impressive portfolio Dedicated team International footprint Strong home market (17) 21-10-10
Q&A (18) 21-10-10
20 MAJOR SHAREHOLDERS SHAREHOLDERS 20 OCTOBER 2010 SHAREHOLDING % ERSTE BANK DER OESTE SPARKASSEN AG 16.49 ODIN NORGE 8.97 SKAGEN VEKST 4.81 DNB NOR SMS 3.51 HOLBERG NORGE V/HOLBERG FONDSFORVALTNING 3.42 JP MORGAN CHASE BANK 3.28 LARS ANDRESEN 2.71 KIKUT AS 2.58 REDBACK AS 2.48 BANK AUSTRIA 1.97 VITAL FORSIKRING 1.78 VPF NORDEA KAPITAL 1.77 MONS HOLDING AS 1.73 VPF NORDEA AVKASTNING 1.44 DNB NOR NORGE 1.29 SABARO INVESTMENTS 1.29 DEUTCHE BANK 1.24 WARREN WICKLUND NORGE 1.12 STATOIL PENSJON 1.00 NHO 1.00 (19) 21-10-10 SUM 63.88 %