EDB Business Partner > slide 1

Transcription

1 EDB Business Partner > slide 1

2 Q3 HIGHLIGHTS GROUP Revenue growth +18% Y/Y EBITA margin 8.9 % Cash flow from operations NOK 120 million Restructuring completed Annual costbase reduction of NOK 100 million EDB Sweden with 100% Y/Y revenue growth Strategic wins in Bank & Finance Strong demand for EDB SW components & services EDB Business Partner > slide 2

3 3Q SIGNINGS: NOK 480 MILLION Top 15 NOK million DnB NOR 47 A-kassor 28 Hydro Texaco 25 Terra Gruppen 24 Telenor 18 Statens Järnväger 14 Apoteket 11 Sandnes Sparebank 11 Møller Gruppen 10 Trondheim kommune 10 Green Cargo 9 Toyota 9 Stockholmshem 8 Sparebanken Møre 8 Sparebanken Vest 6 Total 237 EDB Business Partner > slide 3

4 KEY FIGURES Q GROUP (NOK million) Q Q Y/ Y Operating revenue 1,370 1,163 18% Operating costs 1,248 1,041 20% Operating profit before amortisation (EBITA) % EBITA % 8.9 % 10.5 % EBIT before non-recurring items % Non-recurring items Profit before tax Cash flow from operations Operational investments (CAPEX) EPS before non-recurring items (NOK) % No. of employees 3,928 2,707 EDB Business Partner > slide 4

5 OPERATING REVENUE GROUP NOK mill Q1 Q2 Q3 Q EDB Business Partner > slide 5

6 EBITA MARGIN GROUP 12 % 10 % 8 % 6 % 4 % 2 % 0 % Q1 Q2 Q3 Q EDB Business Partner > slide 6

7 REVENUE DISTRIBUTION Q Application Services 15 % Banking and finance Public sector Solutions 19 % Retail and industry IT Operations 66 % Telecom Q Q EDB Business Partner > slide 7

8 CASH FLOW FROM OPERATIONS GROUP NOK mill Q1 Q2 Q3 Q EDB Business Partner > slide 8

9 ORDER BACKLOG NOK 11.4 BILLION NOK million ORDER BACKLOG DISTRIBUTED Total order backlog 2006* Later IT Operations 9, ,937 2,692 1,803 1,399 Solutions 1, Application Services Total order backlog 11,373 1,212 3,556 3,043 2,034 1,528 % of total 11% 31% 27% 18% 13% * Includes Q4 EDB Business Partner > slide 9

10 IT Operations Highlights and Key Figures EDB Business Partner > slide 10

11 Q3 HIGHLIGHTS IT OPERATIONS Sustained profitability Revenue 1% Y/Y EBITA margin 9.2% Restructuring completed Total charges NOK 144 million Annual costbase reduction of NOK 100 million Increased demand for value added services 15% YTD growth in EDI Breakthrough in Web2Print 25% YTD increase in database search Infrastructure Solutions for NAV and A-kassor New signings NOK 229 million EDB Business Partner > slide 11

12 KEY FIGURES IT OPERATIONS (NOK million) Q Q Y/Y Operating revenue % Cost of goods sold Salaries and related costs Ordinary depreciation Other operating costs Total operating costs % Operating profit before amortisation % EBITA % 9.2 % 9.4 % Operational investments (CAPEX) No. of employees 1,897 1,687 EDB Business Partner > slide 12

13 Solutions Highlights and Key Figures EDB Business Partner > slide 13

14 Q3 HIGHLIGHTS SOLUTIONS Continued profitable growth Revenue +3% Y/Y EBITA margin 15.1% New signings NOK 201 million TAG Systems with strong performance 3Q +37% and YTD +27% Y/Y Signings; NOK 70 million in 3Q International expansion Successful launch of EDB Financial Suite Storebrand and Hedmark Sparebank up and running on MobileBank Strong demand for Card Processing and Acquiring EDB Business Partner > slide 14

15 KEY FIGURES SOLUTIONS (NOK million) Q Q Y/Y Operating revenue % Costs of goods sold Salaries and related costs Ordinary depreciation 3 2 Other operating costs Total operating costs % Operating profit before amortisation (EBITA) % EBITA % 15.1 % 18.9 % Operational investments (CAPEX) 4 1 No. of employees EDB Business Partner > slide 15

16 Application Services Highlights and Key Figures EDB Business Partner > slide 16

17 Q3 HIGHLIGHTS APPLICATION SERVICES Strong profitable organic growth Revenue +12% Y/Y EBITA margin at 6.1% Billable utilisation 78.4% Nordic SAP agreement Healthcare Solutions established NAV Portal project successfully completed Live in October with Portal to 15,000 users New signings NOK 50 million EDB Business Partner > slide 17

18 KEY FIGURES APPLICATION SERVICES (NOK million) Q Q3 2005* Y/Y Operating revenue % Costs of goods sold Salaries and related costs Ordinary depreciation 1 1 Other operating costs Total operating costs % Operating profit before amortisation (EBITA) % EBITA % 6.1 % 1.4 % Operational investments (CAPEX) 4 - No. of employees *Proforma EDB Business Partner > slide 18

19 EBITA MARGIN APPLICATION SERVICES 16 % 14 % 12 % 10 % 8 % 6 % 4 % 2 % 0 % Q1 Q2 Q3 Q EDB Business Partner > slide 19

20 Future prospects Key drivers for growth and profitability EDB Business Partner > slide 20

21 FAST START 4Q 2006 Customer Country NOK million Gjensidige Norway 150 LF Bank Sweden 50 4 Banks UK 25 Brødrene Dahl Norway 21 SEB Sweden 20 TAG contract Norway 15 Norske Skog Norway 10 Posten Sweden 10 Total 301 EDB Business Partner > slide 21

22 READY FOR FURTHER EXPANSION Consolidation Expansion Developing new Corporate strategy Building Application Services Focusing on core Business areas Building Solutions portfolio Regaining profitability Established critical mass in IT operations EDB Business Partner > slide 22

23 BALANCED REVENUE Revenue distribution YTD % Revenue distribution YTD % 20 % 64 % 77% IT Operations Solutions Application Services IT Operations Solutions EDB Business Partner > slide 23

24 POSITIONED FOR FURTHER NORDIC GROWTH Sweden key figures YTD Revenue NOK 1 billion IT Operations 53% of revenue Solutions/App. Services 47% of revenue Employees 1300 EDB Nordic leadership Oslo Örebro Stockholm No.1 in Norway No. 5 in Sweden Gothenburg No. 2 in IT Operations Nordics No. 4 in Application Services/Solution Copenhagen Malmö EDB Business Partner > slide 24

25 2007 NORDIC IT MARKET TRENDS IT services growth 5 6 % Strong demand and price increase in Project services (Solutions & Appl. Svcs) Strong demand for SW components and related Svcs Digital users drives development Customer and public oriented solutions Adoption of Software Oriented Architecture Drives demand for services Off-shoring demand Nordic customers looking for partnership EDB Business Partner > slide 25

26 KEY PROJECTS FOR PROFITABLE GROWTH Focus on sales education/coaching Organic growth and cross sales Strategic wins Improve cutomer satisfaction Sourcing for cost efficient growth Near-shoring and off-shoring Cost savings in EDB Restructuring program completed Cost saving program on track Increased international penetration Success with EDB Financial Suite EDB Business Partner > slide 26

27 EXTENDED FOOTPRINT IN NORDIC, BALTIC AND UK Asset management Card solutions Card solutions, Internet banking components Internet banking components, price & product managament Card solutions, automated customer information handling Corporate lending system Internet and office process solutions Credit process automation solution Banking office process automation solution EDB Business Partner > slide 27

28 Summary and Outlook EDB Business Partner > slide 28

29 POSITIONED FOR GROWTH Lowering cost-base NOK 100 million lower cost-base in IT-Operations NOK 300 million cost-reduction programme (Group) on track Off-/Near-shoring initiatives Regained financial strength Q4 '06 and 2007 backlog; NOK 4.8 billion Global roll-out of EDB Financial Suite EDB Sweden on track - ready for expansion IT Market consolidation continuous EDB Business Partner > slide 29

30 Appendix EDB Business Partner > slide 30

31 BALANCE SHEET - GROUP (NOK million) 30/09/06 30/09/05 31/12/05 Goodwill 3,043 1,914 1,899 Other intangible assets Tangible fixed assets Financial fixed assets Total fixed assets 4,096 2,793 2,733 Accounts receivable Other current receivables Liquid assets Total current assets 1,497 1,277 1,261 Total assets 5,593 4,070 3,994 Equity 1,739 1,672 1,751 Minority interests Total equity 1,741 1,673 1,751 Provisions Loan on special conditions Other interest bearing liabilities 1, Total long-term liabilities 2,547 1,388 1,086 Accounts payable Duties payable, vacation allowance Other non-interest bearing liabilities Interest bearing liabilities Total current liabilities 1,304 1,008 1,157 Total equity and liabilities 5,593 4,070 3,994 EDB Business Partner > slide 31

32 KEY FIGURES PER BUSINESS AREA Operating revenue: Q3'06 Q3' Q2'06 Q1'06 Q4'05 Q3'05 Q2'05 Q1'05 Q4'04 Q3'04 IT Operations , Solutions , Application Services * Netting/Other Total group 1,370 1,163 4,858 1,523 1,341 1,269 1,163 1,247 1,180 1, Operating profit before amortisation (EBITA): Q3'06 Q3' Q2'06 Q1'06 Q4'05 Q3'05 Q2'05 Q1'05 Q4'04 Q3'04 IT Operations Solutions Application Services * Staff / Not allocated Total group Operating margin: Q3'06 Q3' Q2'06 Q1'06 Q4'05 Q3'05 Q2'05 Q1'05 Q4'04 Q3'04 IT Operations 9.2 % 9.4 % 9.1 % 8.3 % 8.2 % 9.4 % 9.4 % 8.9 % 8.7 % 9.9 % 10.1 % Solutions 15.1 % 18.9 % 18.9 % 15.5 % 14.9 % 20.0 % 18.9 % 20.8 % 15.2 % 9.8 % 18.7 % Application Services * 6.1 % 9.5 % 13.8 % Total group 8.9 % 10.5 % 10.4 % 9.1 % 9.2 % 10.9 % 10.5 % 10.8 % 9.2 % 8.8 % 10.5 % * Pro forma 4th quarter 2006 were revenues of NOK 245 mill, EBITA of NOK 26 mill, and EBITA margin of 10,6% EDB Business Partner > slide 32

33 NET INTEREST BEARING LIABILITIES GROUP NOK mill Q1 Q2 Q3 Q EDB Business Partner > slide 33

34 ROIC: RETURN ON INVESTED CAPITAL 25 % 20 % 15 % 10 % 5 % 0 % Q1 Q2 Q3 Q EDB Business Partner > slide 34