2nd Quarter July 13, 2011

Transcription

1 2nd Quarter 2011 July 13, 2011

2 Q2 highlights Revenue and EBITA-margin before non-recurring items Revenue EBITA-margin Organic* growth of +0.2 % Y/Y o Organic growth in Sweden +7 % Y/Y EBITA reported NOK 166 mill o Significant lower DigOff cost in Solutions area o Positive pension effect NOK 28 mill Synergy run-rate NOK 128 mill NOKm ,155 3, % 4.9% 8 % 7 % 6 % 5 % 4 % 3 % 2 % o Up from NOK 60 mill in Q1` % 0 Q2 10 Q % 2 nd Quarter 2011 * Organic growth : change in revenue corrected for acquisitions and disposals, and movements in exchange rates 2

3 Key consolidated Group figures (NOK million) Q Q ) ) Operating revenue 3,202 3,155 12,447 EBITDA ,124 EBITA before non recurring items 2) EBITA % before non recurring items 2) EBIT before non recurring items Non-recurring items EBIT EBT EPS 3) nd Quarter ) Pro forma, 2) Including pension effect NOK 28 million 3) Actual reported figures 3

4 NOK mill Cash-flow from operations Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q nd Quarter

5 Solid order back-log of NOK 17.1 billion New signings of NOK 2.7 billion Back-log secures visibility (NOK billion) IT Operations Solutions Consulting 6 Main signings in Q o Landkreditt NOK 110 mill o Energy supplier SEK 100 mill o Onninen NOK 54 mill o Norsk Tipping NOK 40 mill Later 2 nd Quarter

6 Quality improvements Banking & Finance Norway 6

7 Quality improvements in B&F Norway Quality improvements to strengthen services and operations o o o o Improve potential weaknesses in critical bank infrastructure Strengthen processes Improve Life Cycle Management Actively seek improvements in value chain Financial impact Easter incident and SpareBank 1 P&L effect in 2011 totalling to NOK 50 mill verified (10 in Q2, approx 20 in both Q3 and Q4) Majority relates to costs attached to quality improvements in infrastructure, value chains and project deliveries Reduced sales in 2011 to Sparebank 1 Allocates evenly between IT Operations and Solutions 2 nd Quarter

8 Segments and Geography Operational and financial review 8

9 IT Operations Revenue development NOK million NOKm Settlement with City of Oslo Sub-contractor to Fujitsu related to Hydro infrastructure NOK 70 mill New signings of NOK 1.1 billion Successfull conversion of Postbanken to DnB NOR Sweden +14% Sweden Norway 0% Norway Q Q nd Quarter

10 IT Operations IT Operations 43% of revenue Organic growth 1% Y/Y o Sweden 6% Y/Y o Norway 0% Y/Y Operational cost from Easter incident approx. NOK 10 mill Positive EBITA-effect from legal claim against Tieto NOK 6 mill (NOK million) Q Q2 2010* Y/Y Operating revenue 1,517 1,484 2% EBITA % EBITA % 5.0% 5.2% CAPEX % Employees 2,684 2,992 *Pro forma 2 nd Quarter

11 Solutions MobileBank 2.0 successfully launched Increased demand for card solutions o Breakthrough o Fraud prevention growing Ready to deliver Election solution to all Norwegian municipalities (except Oslo) New signings of NOK 600 mill 2 nd Quarter

12 Solutions Organic growth of 7% EBITA-growth of 36% with improved margin in all segments Executing Public solution project significant lower negative EBITA-effect from Digoff Solutions 30 % of revenue (NOK million) Q Q2 2010* Y/Y Operating revenue 1, % EBITA % EBITA % 7.5% 6.0% CAPEX % Employees: Nordic 2,064 1,948 Global Sourcing 2,242 1,862 *Pro forma figures 2 nd Quarter 2011 *Pro forma 12

13 Broad Nordic presence in Consulting Consulting Renewed frame agreement with Statoil to deliver SAP and Industrial IT Chosen as Microsoft NSI partner o Strong demand for Sharepoint solutions GIEK contract NOK 30 million o Combining consulting with Group`s solutions portfolio Strengthen position in SME in Finland o Acquistion of Jydacom OY Service portfolio ERP/ CRM Business Intelligence Mobility Digital solutions Collaboration System integration Cloud consulting 25 Offices 1,300 Employees 30 Offices 1,100 Employees 2 Offices 90 Employees 4 Offices 80 Employees 2 nd Quarter

14 Utilisation Q1 Q2 Q1 11 Q1 10 Q2 11 Q2 10 Consulting total 69.2% 68.8% 70.1% 69.3% Sweden 69.7% 66.2% 69.0% 69.1% Consulting Revenue impact from change in hardware sales and Easter vacation compared to Q2`10 Organic growth of 4% in Sweden, unchanged margin Utilization 70.1%, up from 69.3% previous quarter Prices up 1% in Sweden and flat in Norway Norway 68.8% 70.7% 70.9% 69.4% (NOK million) Q Q2 2010* Y/Y Operating revenue % EBITA % EBITA % 4.3% 5.4% CAPEX % Employees 2,559 2,749 *Pro forma 2 nd Quarter

15 Sweden Revenue by business area in Q IT Operations 30% Solutions 31% Consulting 39% Sweden Continued strong organic growth; + 7% Y/Y Successful implementation of Systembolaget Strong demand for ERP-systems Unique solutions portfolio in fast-growing Mobility segment Order back-log NOK 3.6 bn Before elimination (NOK million) Q Q2 2010* Y/Y Revenue % EBITA % EBITA-margin 6.3% 6.3% CAPEX % Employees 2,511 2,552 *Pro forma 2 nd Quarter

16 Norway Revenue by business area in Q IT Operations 48% Solutions 30% Consulting 22% Norway Revenue -1% with +4% organic growth in Solutions and unchanged in IT Operations Reduced HW-sales and Easter effects Consulting Positive EBITA-effect NOK 28 mill from change in pension Improved margin in IT Operations and Solutions, reduced in Consulting Order back-log of NOK 13.5 bn (NOK million) Q Q2 2010* Y/Y Revenue 2,307 2,372-1% EBITA % EBITA-margin 4.7% 4.5% CAPEX % Employees 5,010 5,420 *Pro forma Before elimination 2 nd Quarter

17 First 6 months 2011 Highlights and key figures 17

18 H Revenue by business area in H IT Operations 29% Solutions 33% Consulting 38% Highlights Organic growth; +2% Y/Y Strong organic SME-growth +8% Y/Y Improved profitability in Solutions and Consulting Sweden Still challenging in Enterprise segment in IT Operations Norway Synergy program on track with runrate NOK 128 mill Refinancing NOK 4.5 bn secures financial headroom New signings of NOK 5.8 bn Before elimination (NOK million) H H1 2010* Y/Y Revenue 6,436 6,261 3% EBITA % EBITA-margin 5.0% 5.2% CAPEX % Employees 9,763 9,834 *Pro forma 2 nd Quarter

19 Synergy program 19

20 Synergy effect planned Synergy program NOK 325 million well on track Phase I completed in Q2`11 o 137 FTE s in staff/ IT Operations Phase II in progress, to be implemented in H2 11 o o Total of 103 FTE s mainly in IT Operations Assumed to be covered by NOK 67 million one-off cost accounted for in Q4 10 o Run-rate end Q2 of NOK 128 million o Positive effect in Q2 of NOK 19 million (1H 2011: NOK 34 million) o Costs of NOK 25 million (1H 2011: NOK 47 million) H H H 2012 Synergies, effect on EBITA OPEX, effect on EBITA Synergies, run rate at half-year end 2 nd Quarter

21 Global sourcing strategy 21

22 Establishing a focused ownership in Global sourcing Focused ownership o Ownership in Infopulse Ukraine increased from 60.1% to 100% o Payment USD 6 mill in 2011 and USD 6 mill in 2014 o Exit Miratech Ukraine decided o Received put option max USD 7 mill disagreement whether put option is applicable o Goodwill exposure of goodwill NOK mill in Q3`11 o India: o Put-call option in Span Systems (51% - 100%) to be executed in Q3`11 or Q3`12 o Valued at USD 11 mill Reasonable pricing in both Infopulse and Span Systems 2 nd Quarter 2011

23 Q Outlook and closing remarks 23

24 Company Outlook 2011 Expect modest growth in revenue in 2H` 2011 o Strong pipeline in SME, Public sector and Financial Services Sweden o Modest growth in Consulting will improve utilisation focus on turnover o Positioned to gain market share in Sweden o Challenging Enterprise Outsourcing segment in Norway Initiated measures to improve EBITA o EBITA expected to be in range of NOK 760 mill to NOK 800 mill including pension effects, compared to pro forma EBITA of NOK 553 mill in nd Quarter 2011

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