4th Quarter February 9, 2012

Transcription

1 4th Quarter 2011 February 9, 2012

2 Q4 highlights Continued strong improvement in EBITA o EBITA of NOK 232 mill o Synergy run-rate of NOK 230 mill compared to NOK 170 mill as of Q3`11 NOKm Revenue and EBITA-margin before non-recurring items Revenue EBITA-margin % 9 % Organic* growth of +3 % YoY o Sweden +9 % organic growth % 6 % Positive cash flow development o NOK 623 mill before restructuring % 3 % Proposed dividend NOK 0,35/share 0 Q4 10 Q % * Organic growth : change in revenue corrected for acquisitions and disposals, and movements in exchange rates 2

3 Key consolidated figures for the Group (NOK million) Q Q ) ) Operating revenue 3,478 3,350 12,841 12,434 EBITDA ,255 1,122 EBITA before non recurring items 2) EBITA % before non recurring items 2) EBIT before non recurring items Non-recurring items EBIT Net financial items EBT EPS 3) 0,28-0,53 0, ) Pro forma, 2) Including pension effect NOK 28 million in Q ) Actual reported figures 3

4 NOK mill Cash-flow from operations Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Pre-payment from customer NOK 76 mill in Q2`10 and NOK 150 mill in Q3`10 4

5 Order back-log of NOK 16.1 billion Back-log slightly reduced since Q3 Main signings in Q o Posten Norge NOK 100 mill o Statens Vegvesen NOK 67 mill o ONE Nordic SEK 100 mill o TradeDoubler SEK 80 mill o Solna Stad SEK 80 mill o Infratek SEK 65 mill Back-log secures visibility (NOK billion) IT Operations Solutions Consulting Later 5

6 Segments and Geography Operational and financial review 6

7 IT Operations Modest decline; -2% Y/Y o Sweden +10%; solid growth in both SME and Enterprise segment o Norway -5%; affected by lost contracts in 2010 with effect in second half 2011 EBITA at same level o Positive synergy effects offset effects of reduced revenue and costs linked to operational improvement program Reduced lease and increased CAPEX IT Operations 42% of revenue (NOK million) Q Q Y/Y Operating revenue 1,570 1,603-2 % organic EBITA % EBITA % CAPEX % Employees 2,555 2,807 7

8 Revenue analysis IT 880 Operations Sharply declining revenue from IS Partner customers is a major factor for total revenue decrease in IT Operations IT-Operations revenues excluding IS Partner have developed in line with outsourcing market, as estimated by IDC Revenue trend IT Operations 6, , , % 5, IS Partner , , Market Development % 6, , IT Operations ex IS Partner YoY growth Enterprise market (IDC) Source: IDC 8

9 IT Operations Revenue and EBITA-margin before non-recurring items Revenue EBITA-margin New 3-year agreement with Statens Vegvesen NOK 76 mill Gaining share in Sweden with several new customers in SME NOKm % 9 % Strong pipeline in SME and Public Sector and several wins early in % 5.2% 6 % New signings NOK 1,4 bn % 0 Q4 10 Q % 9

10 Solutions Solutions 31 % of revenue Strong organic growth of 11% o Sweden +13%; Financial Services and Mobility o Norway (incl. Global Sourcing) +7%; Growth contributed from both Financial Services and public sector Sharp EBITA increase o Underlying improvement in all areas (NOK million) Q Q4 2010* Y/Y Operating revenue 1,173 1,056 11% organic EBITA % EBITA % CAPEX % o Reduced negative contribution from DigOff Employees: Nordic 2,108 1,991 Global Sourcing 2,011 1,598 *Pro forma 10

11 Solutions Revenue and EBITA-margin before non-recurring items Revenue EBITA-margin NOKm Successful launch of new mobile cloud based solution for the public sector % Targeting the financial sector with new focused Insurance unit % 10 % Delivering 2.2 mill cards to DNB AM agreement with SLF in Norway NOK 20 mill % New signings NOK 800 mill 0 1.4% Q4 10 Q % 11

12 Consulting Organic growth of 0% o Sweden +9%, Norway -4% EBITA at same level o Up in Sweden, drop in Norway Reduced overheads and changed management in Consulting Oslo and SAP Norway Hourly rates improving slowly Stable utilization o Total: 69.2% versus 69.9% o Sweden: 70.1% versus 69.3% (NOK million) Q Q Y/Y Operating revenue Consulting 27 % of revenue 1,026 1,020 0% organic EBITA % EBITA % CAPEX % Employees 2,571 2,625 o Norway: 68.4% versus 70.4% 12

13 Consulting Revenue and EBITA-margin before non-recurring items Revenue EBITA-margin NOKm Established separate Consulting unit to attack NOK 500 mill Industry market in Grenland-area % Delivering several ERP-solutions in SME Sweden % 7.3% 8 % Two year frame agreement with Solna Stad % Strategic frame agreement with NAV 0 Q4 10 Q % 13

14 Sweden Revenue by business area in Q IT Operations 28% Solutions 32% Consulting 40% Sweden Strong organic growth of +9% Y/Y Improved EBITA-margin o Sharp increase in IT Operations +3p.p.t o Continued strong margin in Solutions o Consulting continues to improve margin Order back-log of NOK 3.3 bn (NOK million) Q Q4 2010* Y/Y Revenue* 1, % Organic EBITA % EBITA-margin 9.3% 8.0% Before elimination CAPEX % Employees 2,534 2,397 *Organic growth 14

15 Norway Revenue by business area in Q IT Operations 47% Solutions 31% Consulting 22% Norway Sharp improvement in profitability o Sharp increase in Solutions o Positive effect from synergy program Organic growth of +1% Y/Y o Solutions +7% Order back-log of NOK 12.8 bn (NOK million) Q Q4 2010* Y/Y Revenue 2,457 2,438 1% organic EBITA(**) % EBITA-margin 5.6% 1.1% Before elimination CAPEX % Employees 4,973 5,301 *Pro forma (**) NOK 28 mill in positive pension 15

16 Synergy program 16

17 Synergy program well on track Phase II completed in H2`11 Implementing Phase III in H1 12 o o Total of 80 FTE s mainly in IT Operations Covered by NOK 40 mill one-off cost accounted for in Q4 11 Run-rate end Q4 of NOK 230 mill o o Positive effect in Q4 of NOK 47 mill (YTD 2011: NOK 111 mill) Costs of NOK 34 mill (YTD 2011: NOK 99 mill) Synergy run rate realized and planned Synergies realized (run rate at end of quarter) Synergies planned (run rate at end of quarter) Q410 Q111 Q211 Q311 Q411 Q112 Q212 (NOK million) Q4`11 YTD `11 Synergies effect on EBITA OPEX effect on EBITA

18 Stretched target in synergy program Synergy run rate realized and planned Synergies realized (run rate at end of quarter) Synergies planned (run rate at end of quarter) Strech target Further synergy potential identified Increasing target for synergy program to NOK 360 mill (Q2 2012) Expect to reach 400+ by end 2012 No further one-off costs linked to synergy program A total of 119 vs 120 mill planned Estimated operational costs in 1H 2012 of NOK 65 mill, additional NOK 30 mill in 2H 2012 Includes NOK 50 mill of rebranding costs Q410 Q111 Q211 Q311 Q411 Q112 Q212 (NOK million) Acc. end 2011 Est. acc end Q212 Heading plan One-offs OPEX effect on EBITA SUM

19 Highlights and key figures

20 2011 Revenue by business area in 2011 Highlights EBITA +42% Y/Y in line with our full year guiding Organic growth +3% and gaining share in Sweden +9% Synergy program well on track with run-rate NOK 230 mill Proposed dividend NOK 0,35/share Strong contribution from motivated organization while completing largest merger in the IT Industry Building the new customer oriented company IT Operations 43% Solutions 31% Consulting 26% Before elimination (NOK million) * Y/Y Revenue % EBITA % EBITA-margin 6.1% 4.4% CAPEX Employees *Pro forma 20

21 Summary and outlook 21

22 Summary and outlook Organic growth of 3% both in Q4 and for the full year Strong EBITA improvement quarterly and annualy Positive cash-flow development NOK 623 mill in Q4 Expect positive organic growth and improved profitability in 2012 Promising level of contract signings so far in Q GDP growth in Sweden downgraded, will affect growth within ITservices Market exposure to exporting industry with SME market

23 Capital Markets Day February 16, 2012 Presentation of reporting segments and our ambitions in Norway and Sweden Strategic direction Company guiding Oslo Konserthus , lunch from Management will be available after presentations.

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