ICT Automatisering H1 Results Jos Blejie (CEO) & Jan Willem Wienbelt (CFO) 8/19/2015

Transcription

1 ICT Automatisering H1 Results Jos Blejie (CEO) & Jan Willem Wienbelt (CFO) 8/19/2015

2 Any forward-looking statements in this presentation refer to future events and may be expressed in a variety of ways, such as expects, projects, anticipates, intends or other similar words ( Forward-looking statements ). ICT Automatisering N.V. ( ICT ) has based these forward-looking statements on its current expectations and projections about future events. ICT s expectations and projections may change and ICT s actual results, performance or achievements could differ significantly from the results expressed in, or implied by, these forward-looking statements, due to possible risks and uncertainties and other important factors which are neither manageable nor foreseeable by ICT and some of which are beyond ICT s control. In view of these uncertainties, no certainty can be given about ICT s future results or financial position. We advise you to treat ICT s forward-looking statements with caution, as they speak only as of the date on which the statements are made. ICT is under no obligation to update or revise publicly any forward- looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable (securities) legislation. 2 8/19/2015

3 Agenda KEY FIGURES AND ACHIEVEMENTS OPERATIONAL DEVELOPMENTS FINANCIAL RESULTS H OUTLOOK AND STRATEGY Q&A 3 8/19/2015

4 Key figures and achievements

5 Key Figures H /2 H H M 32.4 M Revenue : + 7% 31.8 M 29.2 M Added Value Revenue: + 9% 3.2 M EBITDA: + 33% 2.4 M M Net profit: + 600K 0.9 M 5 8/19/2015

6 Key Figures H /2 H H % 7.5 % EBITDA % up 170 bp 4.1 M 7.0 M Cash per 30/6 695 Employees: + 12% (Strypes) Earnings per share: + 54% /19/2015

7 A solid first half of 2015 The transformation of the group s verticals into smaller units operating closer to the customer has been completed in the first half of the year. Letter of intent signed to acquire Raster All Legal entities contributed to the Group s result ICT Netherlands stable performance IA unit suffered from postponement of some larger projects Less licenses sold ICT Nearshoring (Strypes Bulgaria) in line with expectations Transaction completed on January 6 th 10% of Revenues coming from new customers derived from synergies with ICT NL Improve Quality Services in line with expectations Remaining 10% of shares acquired in January ICT Poland performed above expectations Contract with a main new customer InTraffic (50/50 joint venture with Movares) in line with expectations Stable result 7 8/19/2015

8 Delivery of services to more than 250 customers Growth strategy via smaller autonomous market units Stimulating entrepreneurship Reduced complexity Automotive & Mobility Logistics & Transport Water & Infrastructure High Tech Manufacturing Food Chemicals & Pharma Healthcare Energy Knowledge and development is stimulated knowledge and shared experiences Products & Licences Smart Manufacturing Economic Value Outsourced Services Nearshoring Projects, T&M T&M Solutions & Services Smart Energy Smart Cloud Internet of Things Model based development Emerging Solutions Secondment Safety, security & Sustainability 8 8/19/2015

9 Operational developments

10 Distribution of revenues by category The transformation towards a better balanced revenue stream is well underway. Focus will be given to higher margin revenues in combination with a well balanced stream of revenues. H H Services 8% Licenses & Materials 4% Training & Courses 2% Services 9% Licenses & Materials 6% Training & Courses 1% Projects 36% Secondment 50% Projects 29% Secondment 55% 10 8/19/2015

11 Distribution of revenues by market As per Q ICT has divided its business in more smaller market units to accommodate more flexibility in its operations and have a higher degree of customer intimacy. H Revenue split Automotive & Mobility 11% Healthcare 6% Water & Infrastructure 5% High Technologies 20% Top clients 2015 = 46% of revenue Cross Industry Solutions 19% Food, Chemical s & Pharma 12% Logistics & Transport 13% Manufacturing 14% 11 8/19/2015

12 ICT Netherlands Netherlands is confronted with postponement of projects and less sales of materials and licenses Mixed picture per market unit External revenue: 30.1 M (2014: 30.7 M) EBITDA: 2.4 M (2014: 2.6 M) In the industrial markets we were also confronted with lower than expected secondment demand from customers Productivity 1.5% Growth in staff to 571 (30/6/2014: 567) 12 8/19/2015

13 ICT Nearshoring (Strypes Bulgaria) ICT closed the transaction of the acquisition of Strypes on January 6. Strypes performed in line with expectations External revenue: 2.5 M EBITDA: 0.7 M Growth from 54 FTE to 85 FTE ultimo June 10% of revenues coming from new customers Introduced.NET technology Preliminary Price Purchase Allocation performed: 550 k amortization on backlog, 325 k on customers 13 8/19/2015

14 Improve Quality Services ICT acquired the remaining 10% of the shares in January 2015 and now owns 100% of the company Improve realised revenue growth of 15% External revenue: 1.9 M (2014: 1.6 M) EBITDA: 0.4 M (2014: 0.2 M) New important contract with major Dutch bank signed Better outlook in vulnerable education market with continuous attention to performance 14 8/19/2015

15 ICT Poland ICT Poland achieved for the first time since its foundation in 2006 a positive result Growth External revenue: 0.5 M (2014: 0.2 M) EBITDA: 0.2 M (2014: M) New important contract with major Japanese manufacturer Working closely together with ICT Netherlands in the Automotive markets 15 8/19/2015

16 Minority stakes ICT has strategic investments in the form of a joint venture LogicNets Software sales of LogicNets were below expectations in H1 2015: Longer sales cycles than expected Postponements of decisions in Netherlands US sales after slow start of 2015 on track in Q2 Ramp up of technical experts slower than expected, creating limits to number of parallel projects to handle Next version of product has delays of 9 months Original business plan out of Q still stands, however with a delay of approximately 9-12 months InTraffic Solid first half of 2015 Small growth 16 8/19/2015

17 Financial results H1 2015

18 Profit & Loss (x 1,000) H H Change Revenue ,8% Cost of materials and subcontractors ,1% Added value ,9% Operating expenses - Personnel Costs ,4% - Other costs ,9% ,9% Operating profit before amortization and depreciation ,7% -Depreciation and amortization ,5% Operating profit ,4% Interest and result from joint venture and associate Taxes Discontinued operations Minority interest NET PROFIT /19/2015

19 Balance sheet (x EUR 1,000) As at 30 June 2015 As at 31 December 2014 Assets NON-CURRENT ASSETS Property, plant & equipment Software and licences Intangible assets Product development Investment in joint venture Investment in associates Goodwill Deferred tax assets CURRENT ASSETS Trade and other receivables Income tax receivable Cash and cash equivalents Equity and liabilities SHAREHOLDERS EQUITY NON-CURRENT LIABILITIES CURRENT LIABILITIES /19/2015

20 Cash flow development 20 8/19/2015

21 Ratio's x 1 million First half-year 2015 First half-year 2014 Financial Highlights Revenue 34,6 32,4 Operating profit 2,1 2,3 Amortization / depreciation 1,1 0,2 EBITDA from continuing operations 3,2 2,4 Net profit 1,5 0,9 Ratios EBITDA / net revenue 9,2% 7,5% Net profit / revenue 4,3% 2,9% Net profit / average shareholders equity 4,4% 3,1% Solvency (Shareholders' equity / total assets) * 68,1% 68,7% Personnel FTE as at 30 June Average number of FTEs for the half-year * at 30 June 2015 and at 31 Dec /19/2015

22 Segmentation First half year 2015 ICT Netherlands ICT Nearshoring Other (X 1,000) Eliminations Consolidated Revenue (419) Segment Gross profit EBITDA Amortization and depreciation Operating profit (165) EBITDA / revenue 7,9% 28,3% 2,6% - 9,2% Average number of employees First half year 2014 ICT Netherlands ICT Nearshoring Other (X 1,000) Eliminations Consolidated Revenue (125) Segment Gross profit EBITDA (210) Amortization and depreciation Operating profit (213) EBITDA / revenue 8,6% - -11,9% - 7,5% Average number of employees /19/2015

23 Strategy and Outlook

24 2015 Management Agenda People Drive Collaboration Become employer of choice LogicNets sales outside NL Streamline the organisation Reduce attrition Focus on our themes Continue with reduction of indirect costs program PDP and MDP Broaden portfolio Select partners to fill in white spots in our ambition Implementation longterm incentive plan Intense collaboration subsidiaries 24 8/19/2015

25 ICT announced acquisition of Raster - July Raster enriches the portfolio of ICT in industrial automation with new customers in new markets as well as the sales and delivery of IA products A niche player with global delivery capabilities Profitable revenues of approximately 4.5 M per year Dutch based (Dreumel) - approx. 22 fte Focus on Oil & Gas, LNG, offshore and heavy duty vessels Own developed products Global partner of the year at Schneider Electric Dealer/importer of IA products 25 8/19/2015

26 ICT announced minority stake in GreenFlux GreenFlux is a fast growing independent e- charging service platform serving many charging pole providers In anticipation of growth EV market ICT brings in charging pole control unit software Brabantse Ontwikkelings Maatschappij is co-investor Obtains a minority stake Exclusive development partnership prolonged with 2 years and extended Closing expected October /19/2015

27 Three step approach Presentation title House in order Build Buy Largely completed in 2014 With the exception of some smaller elements Indirect cost reductions ongoing Improve Quality Services continuous attention Simplify the organisation Prepare for organic growth: Serving promising market/pmc Smaller, commerical, more flexible units Invest in replicable solutions and in vital infrastructure markets Look at candidates operating In the area of sustainable and recurring (by contract) type of businesses to balance the volatile secondment model Operating at different customers Operating in promising market segments Growth is to be found in areas with higher added value : 1. Organic by developing new solutions 2. Organic by acquiring new customers through strategic alliances and partnerships 3. Smaller acquisitions to fill in gaps in either solution or market 27 8/19/2015

28 Outlook 2015 ICT continues to execute its strategy: Offering innovative and effective product / market solutions Combining autonomous growth with growth through acquisitions ICT expects for 2015 an improvement in EBITDA results from continuing operations in between 25% - 35% compared to /19/2015

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