Interim report 1-3/

Transcription

1 Interim report 1-3/

2 Forward-Looking Statements Certain sections of this presentation contain forward-looking statements based on the Affecto s current expectations, estimates, projections and assumptions. Words such as 'forecasts', estimates, expects, plans, and variations of these words and similar expressions are intended to identify forward-looking statements, which include, but are not limited to, Affecto's performance and profitability, market growth and industry developments. These statements involve certain risks and uncertainties, which are difficult to predict, and therefore actual future results and trends may differ materially from what is forecast in forward-looking statements. Affecto undertakes to update such statements with respect to new information and future events only within the limits of its statutory obligation to disclose information. 2

3 Q1/1 Q3/1 Q1/11 Q3/11 Q1/12 Q3/12 Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 M Q1/1 Q3/1 Q1/11 Q3/11 Q1/12 Q3/12 Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 M Affecto in brief Net sales 123 M in 214 Over 1 employees Net Sales, last 12 months Net sales per region 1-3/215 Baltic 17 % Operational Segment Result, last 12 months Denmark 1 % Sweden 15 % Finland 4 % Norway 18 % 3

4 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Overview to Q1/ Net Sales (M ) 2 Net sales 29.1 M (31.2 M ) 1 - Decrease 7% - Growth in Baltic, decrease elsewhere - Weaker demand for core offering, more interest in new business technology solutions 5 Operational segment result (M ) 4 Operational segment result 2.1 M (.1 M ) - Excellent profitability in Baltic - Improved profitability in Norway - Decreased profitability in Finland and Denmark Positive result in Sweden Operating profit 2.1 M / 7% (-.4 M / -1%) Operating profit (M )

5 Income statement (1 EUR) 1-3/15 1-3/ Last 12m Net sales Other operating income Changes in inventories of finished goods and work in progress Materials and services Personnel expenses Other operating expenses Other depreciation and amortisation Operational segment result IFRS3 amortisation Goodwill impairment Operating profit/loss Net financial income/expenses Profit before income tax Income tax Profit for the period Personnel costs and materials costs have decreased more than net sales No IFRS3 amortisation, as that was completed in Q4/214 Basic EPS

6 M M Segment comparison Net Sales Net Sales By segment 1-3/15 1-3/14 Growth 214 Last 12m Finland % Norway % Sweden % Denmark % Baltic % Other Total % Q1/14 Q1/15 Result By segment 1-3/15 Margin 1-3/14 Margin 214 Margin Last 12m Margin Finland % % % % Norway % % % % Sweden % % 34 2 % % Denmark 6 2 % % % % Baltic % 16 4 % % % Other Operational Segment % 125 % % % Result IFRS3 amortisation Goodwill impairment Operating profit % % % % 6 1,4 1,2 1,,8,6,4,2, -,2 -,4 Operational Segment Result Q1/14 Q1/15

7 Business areas - Finland Net sales 12.1 M (12.6 M ), 4% decrease Operational segment result.6 M / 5%, (.9 M / 7%) Rather low resource utilisation Cautious customers, slow decision making Order backlog is below last year Net Sales Operational Segment Result 3, 2,5 2, 1,5 1,,5, 7

8 Business areas - Norway Net sales 5.4 M (6.3 M ), 13% decrease Operational segment result.6 M / 11%, (-.3 M / -5%) Lower number of employees than year ago, weaker NOK Improved cost base, increased utilisation of nearshoring Order backlog is below last year Net Sales Operational Segment Result 2, 1,5 1,,5, -,5-1, 8

9 Business areas - Sweden Net sales 4.6 M (5.8 M ), 21% decrease Operational segment result.1 M / 2% (-.3 M / -5%) Decreased number of employees, weaker SEK Decreased number of employees has increased the negative impact from fixed costs Recruitment of the new country manager is ongoing Progress to the right direction, but still uncertainty regarding the pace of the development Order backlog is above last year Net Sales Operational Segment Result , 1,5 1,,5, -,5-1, 9

10 Business areas - Denmark Net sales 2.9 M (3.5 M ), 17% decrease Operational segment profit.1 M / 2% (.3 M / 9%) Weak sales and low utilisation Order backlog below last year Net Sales Operational Segment Result 3, 2,5 2, 1,5 1,,5, 1

11 Business areas - Baltic Net sales 5.1 M (4.1 M ), 23% increase Operational segment result 1.3 M / 26% (.2 M / 4%) Some large projects at final stages, which has impacted positively on resource utilisation and profit Insurance business doing well Stable business in Estonia Some improvement in Lithuanian local market, but new EU funded projects are still under preparation Order backlog is below last year Net Sales Operational Segment Result , 1,5 1,,5, -,5-1, 11

12 Balance sheet (1 EUR) 3/215 3/214 12/214 Property, plant and equipment Goodwill Other intangible assets Other long-term assets Long-term assets Receivables and inventories Cash and cash equivalents Current assets IFRS3 amortisation has been completed Interest-bearing net debt.5 M (1.1 M 12/214) Gearing 1% (2%) Equity ratio 59% (55%) Total assets Equity for shareholders Non-current liabilities Current liabilities Total equity and liabilities

13 Cash flow (1 EUR) 1-3/ / Cash flows from operating activities Profit for the period Adjustments to profit for the period Change in working capital Interest and other financial cost paid Interest and other financial income received Income taxes paid Net cash from operating activities Working capital has grown, typical in the first quarter Net cash used in investing activities Net cash from financing activities (Decrease)/increase in cash and cash equivalents

14 Ownership structure 2 April 215 Registered owners % Cantell Oy 1,2 % Lombard International Assurance S.A. 6,5 % Danske Suomi Kasvuosake Fund 6,5 % Säästöpankki Kotimaa Fund 5,8 % Evli Suomi Fund 4,9 % OP-Suomi Pienyhtiöt Fund 4,8 % Ilmarinen Mutual Pension 4, % OP-Suomi Arvo Fund 3,4 % Taaleritehdas Arvo Markka Fund 3,2 % State Pension Fund 2,7 % Other shareholders 44,2 % Treasury shares 3,9 % Flagging notices in None Treasury shares 3.9% 22.5 million shares in total Total 1, % 14

15 Dividend ( /share) Annual General Meeting - 8 April 215 Dividend:.16 eur/share - Last year.16 eur/share,2,16,12 Board members: - Existing board members re-elected: Aaro Cantell, Jukka Ruuska, Tuija Soanjärvi, Lars Wahlström, Magdalena Persson, Olof Sand,8,4, Other issues - Board fees: chairman 35 /month, vice chair 275 /month, member 2 /month. To be partially paid with shares - Same authorizations as last year - Nominations committee for board member selection 15

16 Outlook

17 February 12th strategic direction in motion Good progress in converting the strategic direction into operational changes - Increased focus on industry verticals and value in customer work - Industry workshops with customers and partners - Strategy workshops for employees, buy-in and engagement - Recruitment to the new hybrid roles Capability development on several fronts: - "Affecto industrial" program in Finland, Sweden & Denmark to focus on IoT & analytics for selected industrial verticals - BtoC solution capabilities in Sweden - User interface / usability solutions - Near-shore capability development boost 17

18 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Outlook Order backlog 42 M, 6 M below Q1/214 Uncertainty on timing and maturity on the emerging business technology solutions market Order backlog (M ) Order backlog (M ) Q1 Q2 Q3 Q Net sales and operating profit are estimated to grow in 215, but there is uncertainty especially related to the net sales development 18

19 19 Thank you.