Vertical Market Software

Transcription

1 Vitec Software Group Vertical Market Software Lars Stenlund, VD

2 Vitec Short Facts VITEC SHORT FACTS Software company with industry-specific solutions Founded in 1985 by Lars Stenlund and Olov Sandberg Annual Turnover of SEK 316 million in 2010 Operating Profit of SEK 20 million in 2010 Number of employees approx. 300, with 90% in Sweden Active in five customer areas/(vertical Markets) Seven offices in Sweden, one in Oslo and one in the U.S. Listed on NASDAQ OMX, Stockholm (Small Cap) Aprox shareholders

3 Offering Unique Offering We focus on industry-specific business systems that are more cost effective than general solutions. Software Specialist Services Contracts for support and maintenance Mission With value-creating software and services we offer customers viable, modern business support.

4 Business Strategy Vertical Market Software Subcontractors Low dependence on third party vendors, self-development predominate. Customers Markets with one hundred to several thousand customers. Not billion markets. High entry barriers Mission critical systems with high exchange cost and long lead times in developing. The competition Small competitors with limited resources to grow, sometimes without "professional" management. Customers option Limited and less cost-effective solutions from generalists and consultants.

5 Growth Strategy 1 - Acquire Identify and select vertical market acquisition candidates and negotiate and acquire. Capital 2 - Refine Create operational improvements and establish strategic direction. Increase Cash Flows. 3 - Grow Implement additional acquisitions and organic growth.

6 A selection of our customers

7 Selection of customers Property managers

8 Business Area Fastighet Rental coupon Tenant pages Apartment rentals

9 Selection of customers - Mäklare

10 Business Area Mäklare Purchase Agreement Data for Appl. on the brokers website

11 Selection of customers - Energi

12 Business Area Energi Power load forecasts Windpower forecasts Network calculations of electricity load District heat pipe flow

13 Selection of customers Finans och Försäkring

14 Business Area Finans och Försäkring Pension Calculations Mortgage calculations

15 Selection of customers - Media

16 Business Area Media SMP Social Media Platform

17 History of successful growth Milestones 1985 Vitec is formed 1998 Listing on Aktietorget Acquisition of companies offering software for real estate management 2002 Year of IT-crash. Vitec gives dividend for first time (0.25 kr) 2003 Strategies for growth and acquisitions are formulated Vitec completed 10 company acquisitions and nine acquisitions of product rights or assets Turnover is SEK 316 million (Dividends of SEK 1.25) First acquisition outside of Sweden Turnover (million SEK)

18 Strong Earnings Growth Profit before tax (million SEK) ,4 %/year

19 ( million SEK ) Revenue Growth Growth is driven both organically and through acquisition of new business areas Capitex 3L System Mäklarsystem Media Energi Fastighet 25%/år

20 Growth while maintaining profitability 30% 25% 20% 15% 10% 5% 0% Return on capital employed Return on equity

21 Locations and Employees Year Location No. Of employees 1985 Umeå Stockholm Malmö Göteborg Västerås Linköping Dayton Ohio, USA Östersund Kalmar Oslo 14 ~ 320

22 Interim Report January - September 2011 EARNINGS PER SHARE UP 123 % NET SALES 265,7 Mkr (214,2) OPERATING PROFIT 30,2 Mkr (11,6) OPERATING MARGIN 12 % (6) EARNINGS PER SHARE 5,11 kr (2,29) CASH FLOW 42,7 Mkr (36,1) LISTING ON NASDAQ OMX STOCKHOLM ACQUSITION OF IT MAKERIET A/S IN NORWAY Key events in the third quarter 2011 Vitec subsidiary 3L System AB (publ) signs a contract worth 2.3 million USD Significant events after the period Vitec call an extraordinary general meeting on 11 November concerning proposals for convertibles to employees of the Vitec Group.

23 Turnover (million SEK) Repetitive portion (%) Turnover and repetitive portion per quarter 120,0 100,0 120,0 100,0 80,0 60,0 40,0 20,0 0,0 Q3-08 Q3-09 Q3-10 Q3-11 Turnover Repetitive portion 80,0 60,0 40,0 20,0 0,0

24 Turnover (million SEK) Opetating margin (%) Revenue and operating margin by quarter Q3-08 Q3-09 Q3-10 Q3-11 Turnover (million SEK) Operating margin %

25 Income Statement January September 2011 Income Statement OPERATING REVENUE Jan-Sept 2011 Jan-Sept 2010 License revenues Recurring revenues Service revenues Other income NET TURNOVER Other operating income Recurring Service Licence Other Depreciation Work performed for own account Other costs OPERATING EXPENSES OPERATING PROFIT Financial items INCOME AFTER FINANCIAL ITEMS Tax NET INCOME Attributable to the shareholders of Vitec EARNINGS PER SHARE (SEK/share) 5,11 2, Earnings per share (SEK)

26 Balance September 30, 2011 Balance FIXED ASSETS Goodwill Capitalised development expenditure Product rights Equipment and furniture Other non-current receivables CURRENT ASSETS Inventories Current assets Cash TOTAL ASSETS EQUITY MINORITY INTEREST NON-CURRENT LIABILITIES AND PROVISIONS CURRENT LIABILITIES TOTAL EQUITY AND LIABILITIES Owners equity per share (SEK)

27 Cash flow January September 2011 Cash flow Jan-Sep 2011 Jan-Sep 2010 OPENING EQUITY Operating profit Adjustments for items not included in cash flow Interests and taxes CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGE IN WORKING CAPITAL Change in working capital CASH FLOW FROM OPERATING ACTIVITIES Cash flow from investing activities Cash flow from financing activities CASHFLOW Cash and cash equivalents at beginning of period CASH INCLUDING SHORT-TERM INVESTMENTS AT END OF PERIOD* Available cash and cash equivalents at end of period includes SEK 12.6 million in 3L System AB Cash earnings per share (SEK/share)

28 Segment reporting January-Sept Business area Net turnover (million SEK) Operating profit (million SEK) 2011 July-Sept 2010 July-Sept 2011 Jan-Sept 2010 Jan-Sept 2011 July-Sept 2010 July-Sept 2011 Jan-Sept AO Mäklare AO Fastighet AO Energi AO Media AO Capitex AO 3L System Common Vitec Group Jan-Sept Revenue shares business areas January - September 2011 Performance parts business areas January - September 2011 AO Mäklare 38 % AO Fastighet 19 % AO Energi 5 % AO Media 5 % AO Capitex 5 % 3L System AB 27 % AO Mäklare 73 % AO Fastighet 25 % AO Energi 11 % AO Media 0 % AO Capitex 9 % 3L System AB 6 %

29 Board Nils-Eric Öquist Chairman Carl-Erik Nyquist Crister Stjernfelt Kaj Sandart Olov Sandberg Jan Friedman Birgitta Johansson- Hedberg

30 Largest shareholders No. of Shares* No. of A-shares No. of B-shares Capital % Votes % Lars Stenlund ,3 32,4 Olov Sandberg ,5 32,1 Jerker Vallbo ,3 6,5 LF Småbolagsfond ,1 2,7 Thomas Eklund ,6 2,1 Nils-Eric Öquist ,1 1,9 Kristofer Stenum ,1 1,2 Rambas AB ,1 1,2 Avanza Pension (FRV) ,0 1,2 Niklas Stenum ,7 1,1 Nordnet Pensions (FRV) ,1 0,4 Alfred Berg Småbolag ,5 0,2 Other shareholders ,8 18,1 TOTAL % 100% * The number of holdings as at

31 Value creation for shareholders

32 Business Goals Growth targets Continued growth of 25 % on average, of which 5-10 % organic. Financial targets Profit margin 15 %. Dividend targets 1/3 of the profit will be distributed to shareholders.

33 Strategy for continued growth Strategy Organic and acquisition-driven growth Vertical Market Orientation - Defined market with potential - Possible to achieve dominance Business models with repeatable revenue Acqusition targets Target companies with turnover SEK million - Vertical Market Software Companies - New nisch/market alt. completion - Earnings per share critical factor - Prize about 5-7 times annual profit depending on equity Next: Nytt tillväxtmål fortsatt expansion

34 Vitec Software Group Vertical Market Software Lars Stenlund, VD