1 Cision AB (publ) Interim report January March 2012, April 24th, 2012 Cision reports solid incremental performance January March Total revenue SEK 245 million (248) Organic growth +4% ( 2%) Operating profit SEK 35 million (32) Operating margin 14.2% (12.9%) Cision US recorded organic growth of 11% (3%) Operating cash flow SEK 24 million (32) Profit before tax SEK 29 million (25) an increase of 17% KEY FINANCIAL DATA 2012 2011 2011 2011/12 SEK in millions Total revenue 245 248 969 966 Organic growth, vs last year, % 4 2 0 2 Operating profit 35 32 120 123 Operating profit excl NRI 35 32 132 135 Operating margin excl NRI, % 14.2 12.9 13.6 13.9 EBITDA 49 45 184 188 EBITDA margin, % 20.2 18.1 19.0 19.5 Net Debt/EBITDA 12MR 2.0 2.1 2.2 2.0 Operating cash flow 24 32 81 73 Free cash flow 16 21 45 40 Currency effect on revenue 6 23 87 55 Currency effect on operating profit 1 4 15 10 Net profit 25 19 85 91 Earnings per share diluted, SEK 1) 1.71 1.26 5.70 6.15 1) The reverse share split with record date May 5, 2011, whereby ten old shares were consolidated into one new share, has been taken into consideration, also retroactively for previously reported periods. Comment by Cision CEO Hans Gieskes: We saw the momentum gained in the second half of last year continuing during the first quarter. The 2011 investments we have made in our award winning CisionPoint PR software and in sales and marketing capabilities have been delivering good results. Our core market in the US experienced double digit growth, as it did in the fourth quarter last year and year on year improvements in operating margins in Europe to 10% compared to 9% last year have been good to see. Organic growth in Europe is now not far away. Our focus remains on aggressively pursuing revenue growth through investing in CisionPoint and sales capabilities whilst maintaining our 20% EBITDA levels of last year. The continuing shift in the media landscape from traditional to social media drives customer demand for our software and bundled information services and at the same time drives our product development road map with many exciting new plans for 2012 and beyond.
2 Market Cision believes that the long-term growth prospects for software and services for the PR industry are good. The impact of social media on consumers is expected to overtake the current impact of print and radio/tv media over time, with PR professionals today taking the lead to incorporate such Earned Media into a company s overall marketing mix. The information available to marketing and PR professionals is increasing in volume, complexity, and urgency, as consumers increasingly share opinions instantly using the internet and social media. Consequently, Cision believes that the demand for integrated PR software solutions, such as CisionPoint, will become increasingly essential for PR professionals to help them manage their daily tasks and increasingly also for other marketing professionals including companies that do not have PR departments. Historically, economic recessions have impacted companies like Cision, but less so than other media-related industries such as paid-for advertising-driven businesses. The Group s development REVENUE BRIDGE Q1 2011 Q1 2012 SEK M 260 250 240 230 248 17 6 8 245 Divestments Changes due to FX Organic growth 220 210 16 200 2011 2012 Revenues in the first quarter decreased by SEK 3 million compared to the same quarter last year, due to the divestment of operations in Finland during 2011, with a net impact of SEK 17 million for the quarter and this was offset by a positive currency effect of SEK 6 million, thus for the quarter there was positive organic growth of SEK 8 million or 4% compared to 2% for the same period last year. ORGANIC GROWTH & OPERATING MARGIN 1) (rolling 12 months) OPERATING PROFIT & OPERATING CASHFLOW 1) (isolated quarters) % Organic growth 6 Operating margin % 16 SEK M Operating profit 80 Operating cash flow SEK M 80 3 0 14 12 60 60 3 10 40 40 6 8 20 20 9 12 6 4 0 0 15 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 2 20 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 20 Organic growth Operating margin Operating profit Operating cash flow 1) Excluding non-recurring items 1) Excluding non-recurring items For the first quarter, operating profit reached SEK 35 million, compared with SEK 32 million for the same period last year. Operating profit was positively impacted by a currency effect of SEK 1 million. The quarter s operating profit and operating margins were good in spite of the negative year on year impact in Canada, and additional sales investments made across the group. North America margins improved and the European division results were solid and in line with expectations.
3 DISTRIBUTION OF REVENUE 17% 18% 65% Subscription revenue Transactional revenue Professional services revenue Cision is a SaaS Company with three types of revenue, all delivered via its software platform CisionPoint. (SaaS Software as a Service) In comparison with the same quarter last year, subscription revenue as a proportion of total revenue amounted to 65% (61%), whereas transactional revenue and revenue from professional services amounted to 18% (21%) and 17% (18%) respectively. Total number of customers amounted to 13,138 (Dec 31, 2011; 13,305), the small decline is due to the removal of customers on old legacy platforms in Europe and the continued decline in the remaining traditional monitoring service customers. Customers on CisionPoint increased to 9,093 (Dec 31, 2011; 8,943). The Group s financial net for the first quarter improved to SEK 6 million ( 7), due to lower interest costs. The tax cost was SEK 4 million ( 6), of which SEK 5 million (4) is deferred tax for deductible goodwill amortization. Tax paid in the quarter was close to SEK 0 million ( 2). As of March 31, 2012, Cision had 1,207 employees; an increase of 27 compared with December 31, 2011, due to additional investment in new Sales focused headcount in managed services to drive revenue growth. Development by region Cision North America 2012 2011 2011 2011/12 SEK in millions Total revenue 195 177 721 739 Organic growth, vs last year, % 6 1 2 4 Currency effect on revenue 7 17 73 50 Operating profit, excl NRI 40 34 129 135 Operating margin, excl NRI, % 20.4 19.2 17.9 18.3 Currency effect on operating profit 2 3 14 10 EBITDA 50 43 167 174 EBITDA margin, % 25.8 24.1 23.1 23.6 During the quarter the CEO of North America, Joe Bernado retired and was succeeded by Peter Granat who had previously been CEO of Europe from 2009 2010. Peter s experience and focus will be on product, sales and marketing execution and business transformation. Organic growth for the first quarter 2012 in North America was +6% compared with last year s 1%. The expected revenue decline in Canada suppressed the region s overall growth and impacted North America margins for the quarter. For the quarter, the US grew once again with +11%, the same as in Quarter 4, 2011. The continuing revenue growth trend was driven by the additional investments made in sales focused headcount in 2011 and further product software enhancements enabling new and existing customers to take-up additional services. The revenue development in Canada, though still in decline, was in line with expectations for this quarter. The rate of decline in Canada is expected to reduce in the coming quarters. The gain of a significant contract worth SEK 3 million p.a. indicates that the business is focused upon the right things, following the transformation process which was put in place in the fourth quarter of last year with an increased focus upon sales and customer service.
4 Cision Europe 2012 2011 2011 2011/12 SEK in millions Total revenue 53 72 261 242 Organic growth, vs last year, % 1 3 3 4 Currency effect on revenue 0 6 11 6 Operating profit, excl NRI 5 7 37 36 Operating margin, excl NRI, % 10.3 9.1 14.3 14.9 Currency effect on operating profit 0 0 1 1 EBITDA 8 9 46 45 EBITDA margin, % 15.4 12.6 17.6 18.6 For the first quarter Europe improved the organic growth trend from 3% in 2011 to 1% in 2012. In the first quarter 2011 revenue of SEK 17 million relates to the divested Monitoring and Analysis business in Finland. In Portugal, the ability to grow revenues as in the past is being hampered due to difficult local economic conditions. The UK operation was close to organic growth for the quarter. Europe still managed to improve operating margins to 10% (9%) due to the continued improvements in operating efficiency. Scandinavia and Portugal reported strong margins, whilst the UK and German sales operations continue to make good improvements. In Germany Cision announced a cooperation agreement with Zimpel to enhance the data points available in our German database inside of CisionPoint and to enable the two partners to increase the available addressable market in Germany. Cash flow 2012 2011 2011 2011/12 SEK in millions Operating Cash Flow 24 32 81 73 Free Cash Flow 16 21 45 40 In the first quarter 2012, Cision saw solid operating cash flow and free cash flow, although it declined marginally compared to the same period last year, mainly due to negative cash flow from working capital and slightly higher investments in fixed assets. The negative working capital effect is driven by continued organic growth and a higher proportion of contracts which have an annual commitment, but with quarterly and monthly payment terms. Financial position 2012 2011 SEK in millions 31 Mar 31 Dec Shareholders equity 992 997 Equity per share 1), SEK 66.83 67.17 Interest bearing net debt 374 400 Net Debt/EBITDA 12MR 2.0 2.2 Working Capital 15 5 Liquid Assets 66 51 1) The reverse share split with record date May 5, 2011, whereby ten old shares were consolidated into one new share, has been taken into consideration, also retroactively for previously reported periods. For the period January and March 2012, shareholders equity decreased by SEK 5 million, of which net profit increased equity by SEK 25 million and exchange rate effects decreased equity by SEK 29 million, other effects decreased equity by SEK 1 million. Goodwill amounted to SEK 1,361 million as of March 31, 2012, decreased by SEK 44 million due to exchange rate effects. The ratio Interest-bearing net debt/12 month rolling EBITDA (before non-recurring items) was 2.0 as of March 31, 2012, inside of the Group s financial target of 2.5. During the first quarter of 2012, net debt decreased by SEK 26 million, due to improved cash flow and to a positive exchange rate effect that decreased net debt by SEK 13 million. As of March 31, 2012, the Group utilized approximately USD 67 million of its syndicated loan, this is the same compared to the previous quarter.
5 Change of number of shares and votes The number of shares remained at 14,909,583 as of March 31, 2012. Cision holds 69,442 treasury shares purchased in Q3, 2011 to hedge the 2011 LTI program, for details see page 53 in the 2011 Annual report. Parent Company For the period January March 2012, revenue amounted to SEK 16 million (19) with a profit before tax of SEK 23 million (9). As of March 31,2012, shareholders equity was unchanged at SEK 941 million (941). Investments in other fixed assets amounted to SEK 1 million (2) for the year to date. Commercial terms are applied to sales between Group companies. No significant changes have taken place in relationships or transactions with related parties. Contingent liability During the first quarter Cision publically disclosed that it had received a threat of a lawsuit brought by a major US Publisher regarding an alleged rights infringement in the US. Cision intends to work towards an amicable solution; however it cannot be excluded that the impact on Cision s full year earnings could be significant. Cision has expensed all legal and adviser costs up to 31 March, 2012, in connection with this threat. Material risks and uncertainties Cision s competitive strength depends on customer focused service development, the successful conversion to a digital offering based on analyzed information, and a digital production process, as well as the ability to attract and retain competent personnel. The greatest risks and uncertainties over the next 12 months are as follows: Economic recessions may have a negative impact on Cision s earning capacity. Certain revenue streams for print and broadcast services may become negatively affected by the declining supply and demand for print and broadcast media. Non-recurring items may arise in order to improve cost efficiency, particularly in the area of Monitoring operations. A tightening of copyright and data protection laws may limit the opportunity to distribute information, or demand for higher compensation by rights holders, these would have a direct impact on Cision s earning capacity. More than 90 percent of the Group s total revenue is in currencies other than Swedish kronor; consequently, currency fluctuations could have a major impact on the consolidated income statement. The Group has a net debt position financed by a syndicated loan facility, which expires in the second quarter of 2013. However, the syndicated loan facility is contingent upon certain covenants; if these are not met, the lenders may require a renegotiation of terms and the loan may become due for repayment. For a more thorough explanation of material risks and uncertainties faced by the Cision Group and the Parent Company, please refer to the detailed information on pages 14 15 and 48 50 of the 2011 Annual Report. Outlook Cision does not issue forecasts. Accounting principles The Group s interim report is prepared in accordance with IAS 34 (Interim Financial Reporting) and according to the Annual Accounts Act. The Parent Company applies the Annual Accounts Act and recommendation RFR 2, Reporting for legal entities, of the Swedish Financial Reporting Board. The accounting principles applied comply with those in the Annual Report for 2011.
6 Changes in presentation Up to 2011, the group management monitored revenues that the operating segments, North America and Europe, received from the services that Cision offered: Plan, Connect, Monitor and Analyze. Increasingly these services have been bundled in to subscription packages making the revenue allocation between service lines less meaningful. Beginning in 2012, Cision is following up on Subscription revenue, Professional Services revenue and Transactional revenue. This change has no effect on the company s financial position or reporting of the operating segments. Stockholm, April 24, 2012. Cision AB (publ) Hans Gieskes Cision AB is required to disclose the information in this interim report under Sweden s Securities Market Act and/ or the Financial Instruments Trading Act. It was released for publication at 8:30 a.m. CEST on April 24, 2012. The interim report has not been reviewed by the company s auditors. Upcoming financial reports July 18, 2012 Interim report January June 2012 October 19, 2012 Interim report January September 2012 For further information, please contact: Hans Gieskes, President and CEO, phone +46 (0)8 507 410 11 e-mail: hans.gieskes@cision.com Tosh Bruce-Morgan, CFO, phone +44 (0) 7710 385 006 e-mail: tosh.bruce-morgan@cision.com Cision AB invites you to participate in a telephone conference on the interim report January March 2012, on Tuesday April 24 at 10:00 (CEST). Hans Gieskes, CEO and Tosh Bruce-Morgan, CFO will participate in the conference. A summary presentation on the interim report will be provided during the telephone conference and will be available on http://corporate.cision.com thereafter Registration and presentation In order to participate and access the presentation that will be held during the conference, please use the following link: https://www.anywhereconference.com/?conference=108267763&pin=366216 Dial-in details To join the conference call, please dial the following number and enter PIN code 366216#. Sweden: +46 8 506 269 00 UK: +44 207 750 9905 France: +33 1 72 72 01 11 Germany: +49 69 2222 3453 Follow the instructions to synchronize telephone and webb conference. Replay Telephone replay will be available until May 2, 2012. Replay numbers: UK: +44 207 750 99 28 Sweden: +46 8 506 269 49 USA: +1 8663056292 Access code: 267763# For further information, please contact: Angela Elliot, telephone: +46 8 507 410 11, e-mail: investorrelations@cision.com Cision AB (publ) P O Box 24194, SE-104 51 Stockholm, Sweden, telephone: +46 8 507 410 00 Corporate Identity No. SE556027951401 http://corporate.cision.com
7 CONSOLIDATED INCOME STATEMENT SEK in millions 2012 2011 2011 2011/12 Revenue 244.8 248.1 965.7 962.5 Other revenue 0.4 0.1 3.6 3.9 Total revenue 245.2 248.2 969.3 966.4 Production costs 83.7 96.4 370.6 357.9 Gross Profit 161.6 151.8 598.7 608.5 Selling and administrative expenses 126.7 119.8 478.4 485.3 Operating profit 34.9 31.9 120.3 123.2 Net financial income and expenses 5.7 7.0 32.6 31.3 Capital gain/loss divestment of subsidiaries 5.9 5.9 Profit before tax 29.2 24.9 93.6 97.8 Tax 3.8 6.0 8.7 6.5 Net profit for the period 25.4 18.9 84.9 91.3 Depreciation included in operating profit 14.6 13.0 52.1 53.6 Earnings per share basic 1), SEK 1.71 1.27 5.70 6.15 Earnings per share diluted 1), SEK 1.71 1.26 5.70 6.15 Non-recurring items included in operating profit 11.4 11.4 Gross profit, excl NRI 161.6 151.8 598.7 608.5 Gross margin, excl NRI, % 65.9 61.2 61.8 63.0 Operating profit, excl NRI 34.9 31.9 131.7 134.6 Operating margin, excl NRI, % 14.2 12.9 13.6 13.9 1) The reverse share split with record date May 5, 2011, whereby ten old shares were consolidated into one new share, has been taken into consideration, also retroactively for previously reported periods. STATEMENT OF COMPREHENSIVE INCOME SEK in millions 2012 2011 2011 2011/12 Net profit for the period 25.4 18.9 84.9 91.4 Other comprehensive income Translation differences 20.5 60.6 16.8 3.7 Hedge of net investment in foreign operations 9.3 15.1 4.7 29.1 Market valuation of financial instruments 0.7 0.1 0.1 1.0 Other comprehensive income 1) 30.5 45.4 12.0 33.8 Total comprehensive income for the period 5.1 26.5 96.9 57.6 1) No tax is reported on items recognized in other comprehensive income. In cases where it may be applicable it is not relevant since it refers to Swedish companies that are not in tax position.
8 CONSOLIDATED BALANCE SHEET SEK in millions 2012 Mar 31 2011 Dec 31 ASSETS Fixed assets Goodwill 1,360.9 1,404.6 Other fixed assets 133.4 144.3 Deferred tax assets 32.7 33.2 1,526.9 1,582.1 Current assets Current receivables 378.4 373.5 Tax assets 15.0 14.2 Liquid assets 65.5 50.9 458.9 438.6 TOTAL ASSETS 1,985.8 2,020.7 SHAREHOLDERS EQUITY AND LIABILITIES Shareholders equity 991.8 996.9 Long-term liabilities Provisions for deferred tax 181.3 183.5 Provisions for non-recurring items 0.5 2.1 Long-term liabilities 449.5 463.6 631.3 649.2 Current liabilities Provisions for non-recurring items 6.2 6.5 Tax liabilities 0.5 1.6 Other current liabilities 356.1 366.5 362.8 374.6 TOTAL SHAREHOLDERS EQUITY AND LIABILITIES 1,985.8 2,020.7 Operating capital 1,499.7 1,534.8 Operating capital excluding goodwill 138.8 130.2 Interest-bearing net debt 373.7 400.2 STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY SEK in millions 2012 Mar 31 2011 Dec 31 Opening balance 996.9 902.3 Comprehensive income Net profit for the period 25.4 84.9 Other comprehensive income Translation difference for the period 20.5 16.8 Hedge of net investment in foreign operations 9.3 4.7 Market valuation, financial instrumens 0.7 0.1 Total other comprehensive income 1) 30.5 12.0 Total comprehensive income 5.1 96.9 Transactions with company s owner Repurchase of own shares 3.4 Share-based payments 1.2 Total transactions with company s owners 2.2 Closing balance 991.8 996.9 1) No tax is reported on items recognized in equity. In cases where it may be applicable it is not relevant since it refers to Swedish companies that are not in tax position.
9 CONSOLIDATED STATEMENT OF CASH FLOWS SEK in millions 2012 2011 2011 2011/12 Operating activities Net profit for the period 25.4 18.9 84.9 91.4 Adjustment for items included in Net Profit Tax 3.8 6.0 8.7 6.5 Net financial income and expenses 5.7 7.0 32.6 31.3 Capital gain/loss divestment of subsidiaries 5.9 5.9 Depreciation 14.6 13.0 52.1 53.6 Reported cost for non-recurring items 11.4 11.4 Other non-cash items 0.2 0.6 0.4 0.3 Non-recurring items paid 1.9 1.4 6.7 7.2 Interest received 0.4 3.6 4.1 Interest paid 5.6 7.1 27.5 26.0 Income tax paid 0.4 2.0 5.8 4.3 Change in working capital 17.7 8.7 63.4 72.5 Cash flow from operating activities 23.8 26.1 84.4 82.1 Investing activities Business divestments 33.6 33.6 Investments in intangible fixed assets 4.9 3.1 31.9 33.7 Investments in tangible fixed assets 2.5 2.0 17.4 18.0 Divestments in tangible fixed assets 9.4 9.4 Increase/decrease in financial fixed assets 0.1 2.1 0.7 1.5 Cash flow from investing activities 7.5 3.0 5.6 10.2 Financing activities Repurchase of own shares 3.4 3.4 Amortization of debt 35.6 126.2 90.6 Increase/decrease in financial liabilities 0.5 0.5 Increase/decrease in current financial liabilities 0.4 0.7 0.3 0.9 Cash flow from financing activities 0.8 34.8 129.3 95.3 Cash flow for the period 15.4 11.7 50.5 23.4 Liquid assets at beginning of period 50.9 101.6 101.6 87.2 Translation difference in liquid assets 0.8 2.6 0.1 1.6 Liquid assets at end of period 65.5 87.2 50.9 21.4 Operating cash flow 24.2 31.8 80.9 73.3 Free cash flow 16.3 21.0 44.5 39.8
10 KEY FINANCIAL HIGHLIGHTS FOR THE GROUP 2012 2011 2011 2011/12 Operating margin, % 14.2 12.9 12.4 12.7 Gross margin, % 65.9 61.2 61.8 63.0 Operating profit, excl NRI, SEK million 34.9 31.9 131.7 134.6 Operating margin, excl NRI, % 14.2 12.9 13.6 13.9 EBITDA 49 45 184 188 EBITDA margin, % 20.2 18.1 19.0 19.5 Net Debt/EBITDA 12MR 2.0 2.1 2.2 2.0 Earnings per share basic 1), SEK 1.71 1.27 5.70 6.15 Earnings per share diluted 1), SEK 1.71 1.26 5.70 6.15 Operating cash flow per share 1), SEK 1.63 2.13 5.43 4.93 Free cash flow per share 1), SEK 1.10 1.40 2.98 2.69 Equity per share 1), SEK 66.83 58.75 67.17 66.83 No. of shares at end of period, thousands 14,910 14,910 14,910 14,910 Avg. number of shares before dilution, thousands 1) 14,840 14,910 14,880 14,863 Avg. number of shares after dilution, thousands 1) 14,840 14,961 14,897 14,865 No. of employees at end of period 1,207 1,284 1,180 1,207 1) The reverse share split with record date May 5, 2011, whereby ten old shares were consolidated into one new share, has been taken into consideration, also retroactively for previously reported periods. REVENUE BY REGION SEK in millions 2012 2011 2011 2011/12 USA 165.4 143.3 598.2 620.1 Canada 29.2 33.8 123.0 118.3 North America 194.6 177.1 721.2 738.4 Germany 2.1 1.9 7.6 7.8 UK 12.4 14.0 59.6 57.9 Portugal 16.6 16.6 67.8 67.8 Sweden 19.2 19.7 80.0 79.5 Norway 0.8 1.0 3.8 3.7 Finland 1.7 18.5 41.3 24.4 Other Europe 0.1 0.3 0.2 Europe 52.9 71.7 260.5 241.2 Regions 247.5 248.8 981.6 979.6 Other 0.6 2.1 5.3 3.7 Eliminations 2.8 2.7 17.6 17.9 Group 245.2 248.2 969.3 966.2 REVENUE BY BUSINESS LINE External revenue, SEK in millions 2012 2011 2011 2011/12 Subscription services 159.9 146.8 592.4 590.5 Transactional services 43.3 55.6 199.5 188.7 Professional services 42.0 45.8 177.3 187.0 Group 245.2 248.2 969.3 966.2
11 INCOME STATEMENT BY REGION Jan March North America Europe Other Eliminations Group SEK in millions 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 Total revenue 194.6 177.1 52.9 71.7 0.6 2.1 2.9 2.7 245.2 248.2 Production costs 70.2 67.6 15.0 28.8 1.5 83.7 96.4 Gross profit 124.5 109.5 37.9 42.9 0.6 2.1 1.4 2.7 161.6 151.8 Selling and administrative expenses 84.7 75.5 32.5 36.3 10.9 10.7 1.4 2.7 126.7 119.8 Operating profit 39.8 34.0 5.4 6.5 10.3 8.6 34.9 31.9 Net financial income and expenses 5.7 7.0 Profit before tax 29.2 24.9 Gross margin, excl NRI, % 64.0 61.8 71.6 59.8 65.9 61.2 Operating margin, excl NRI, % 20.4 19.2 10.3 9.1 14.2 12.9 EBITDA 50 43 8 9 49 45 EBITDA margin, % 25.8 24.1 15.4 12.6 20.2 18.1 ASSETS PER REGION North America Europe Other Eliminations Group 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 SEK in millions Mar 31 Dec 31 Mar 31 Dec 31 Mar 31 Dec 31 Mar 31 Dec 31 Mar 31 Dec 31 Fixed assets incl. deferred tax asset 1,379.4 1,432.6 130.9 133.5 16.6 16.0 1,526.9 1,582.1 Current assets, operating 317.6 311.0 49.4 49.9 0.5 1.1 367.5 362.0 Current assets, financial incl. tax 29.2 42.1 7.1 7.5 55.2 27.0 91.4 76.6 Internal receivables 11.0 9.0 35.4 35.2 918.5 972.9 964.9 1,017.1 Total assets 1,737.1 1,794.7 222.8 226.0 990.8 1,017.1 964.9 1,017.1 1,985.8 2,020.7 OPERATING CASH FLOW BY REGION Jan-Mar North America Europe Other Group SEK in millions 2012 2011 2012 2011 2012 2011 2012 2011 Operating profit 39.8 34.0 5.4 6.5 10.3 8.6 34.9 31.9 Depreciation 10.5 8.8 2.7 2.5 1.4 1.7 14.6 13.0 Investments in intangible fixed assets 3.2 1.1 0.2 0.3 1.4 1.7 4.9 3.1 Investments in tangible fixed assets 2.4 1.2 0.1 0.9 2.5 2.0 Other non-cash items 0.1 0.2 0.1 0.2 0.2 0.2 0.6 Change in working capital 21.0 15.6 2.8 1.7 0.5 5.3 17.7 8.7 Operating cash flow 23.5 25.1 10.5 9.8 9.8 3.1 24.2 31.3 Non-recurring items paid 1.9 1.4 Interest received 0.4 Interest paid 5.6 7.1 Income tax paid 0.4 2.0 Free cash flow 16.3 21.0
12 PARENT COMPANY INCOME STATEMENT SEK in millions 2012 2011 2011 2011/12 Revenue 15.6 18.5 66.6 63.6 Operating expenses 19.0 19.5 83.4 82.7 Depreciation 1.4 1.7 5.4 5.1 Operating profit 4.8 2.7 22.2 24.2 Net financial income and expenses 28.0 12.2 101.1 116.8 Profit before tax 23.2 9.5 78.9 92.6 Tax 11.7 11.7 Net profit for the period 23.2 9.5 90.6 104.3 PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME SEK in millions 2012 2011 2011 2011/12 Net Profit for the period 23.2 9.5 90.6 104.3 Other comprehensive income Net investment in business abroad 23.2 38.0 10.3 25.1 Other comprehensive income 23.2 38.0 10.3 25.1 Total comprehensive income 28.5 100.9 129.4 PARENT COMPANY BALANCE SHEET SEK in millions 2012 31 Mar 2011 31 Dec ASSETS Fixed assets 1,176.1 1,203.4 Current assets 62.2 50.3 TOTAL ASSETS 1,238.3 1,253.7 SHAREHOLDERS EQUITY AND LIABILITIES Shareholders equity 941.1 941.1 Provisions for non-recurring items 0.2 0.4 Long-term liabilities 267.5 267.5 Current liabilities 29.5 44.7 TOTAL SHAREHOLDERS EQUITY AND LIABILITIES 1,238.3 1,253.7 Every care has been taken in the translation of this interim report. In the event of discrepancies, however, the Swedish original will supersede the English translation.
13 Definitions Operating profit EBITDA Operating profit excl. goodwill impairments, depreciations and non-recurring items. Margins Gross margin Gross profit excl. goodwill impairments and nonrecurring items, as a percentage of total revenue. Data per share Average number of shares before dilution Weighted average of the number of shares during the report period. Average number of shares after dilution Weighted average of the number of shares during the report period, taking into account potential shares. Operating margin Operating profit, as a percentage of total revenue. EBITDA margin EBITDA excl. goodwill impairments, depreciations and non-recurring items, as a percentage of operating revenue. Capital structure Working capital Short-term operating assets less short-term operating liabilities. Short-term tax assets and tax liabilities are not included. Operating capital Short-term operating assets less short-term operating liabilities, plus fixed assets. Tax assets and tax liabilities are not included. Interest-bearing net debt Financial liabilities less financial assets. Cash flow Free cash flow Cash flow from operating activities less net investments in intangible and tangible fixed assets plus divestments of intangible and tangible fixed assets. Operating cash flow Cash flow from operating activities excl. nonrecurring items paid, interest received and paid, and income tax paid less investment in intangible and tangible fixed assets plus divestments of intangible and tangible fixed assets. Potential shares Shares added through the future exercise of warrants, convertible debenture loans and employee stock options and which therefore have a dilution effect, i.e. where the discounted subscription price is lower than the stock s average market price during the report period. Earnings per share before dilution Net profit for the year divided by the average number of shares. Earnings per share after dilution Net profit for the year taking into account the profit effect of potential shares divided by the average number of shares taking into account potential shares. Operating cash flow per share Operating cash flow divided by the average number of shares after dilution. Free cash flow per share Free cash flow divided with average number of shares after dilution. Equity per share The closing balance of shareholders equity divided by the number of shares at year-end, taking into account repurchased shares. NRI Non-recurring items Non-recurring items refers to items such as settlement activities, cost of redundant personnel, and other costs attributable to the change in organizational and management structure which should be classified as isolated events.