CEO Terje Mjøs. Oslo, 16 July Q Presentation

Transcription

1 CEO Terje Mjøs Oslo, 16 July Presentation

2 Part I ` Report o Highlights o Group o Segments Part II o Outlook Summary Appendix 20 presentation 2

3 Highlights Record high order backlog Strategic wins in EVRY Financial Services Organic growth 2% EBITA in line with last year Improved in EVRY Financial Services Flat in EVRY Sweden Reduced in EVRY Norway Working capital target reached 20 presentation 3

4 p r e s e n t a t i o n EVRY 20 Part I Group figures

5 Key group figures Stable margins for EVRY Revenue NOK 3,296 million (3,222**) o Organically up 2% EBITA* NOK 180 million (179) o Solid quarter for EVRY Financial Services o Negative effect of NOK million from one working day less Non-recurring items of NOK 79 million o Restructuring of NOK 45 million, slightly above announced costs o Write-down of implementation project of NOK 34 million Operational cash flow of NOK 6 million (104) o Working capital target of 4% reached (3.8%) * Before non-recurring items ** Revised accounting standard for Joint Arrangements (IFRS ) implemented as of January 1 20 and 20 numbers restated accordingly 20 presentation 5

6 Development in key figures EBITA last four quarters* NOK million Revenue last four quarters* NOK million Pro forma figures in 2010 Cash flow last four quarters* NOK million Comments Revenue continues upward trend EBITA and cash flow stable for the quarter and H1 Operational cash flow last 4 quarter. Pro forma figures in 2010 * Revised accounting standard for Joint Arrangements (IFRS ) implemented as of January 1 20 and comparable figures restated accordingly 20 presentation 6

7 Positive organic growth in all segments EVRY EVRY Financial Services 10% 5% 0% -5% 4% 3% -1% -6% -6% -2% -2% 6% 3% 2% 15% 10% 5% 0% -5% 9% % 2% 0% -2% 4% % 10% 6% 1% -10% EVRY Sweden EVRY Norway 15% 10% 5% 0% -5% -10% 10% % 9% -5%-4% -6% -9% 1% 3% 6% 5% 0% -5% -10% -4%-3% -9% -5% -7% -4% -5% 1% 4% 1% 20 presentation 7

8 Key financials Working capital Percent of revenue Average last 4 quarters Software developed in-house Ordinary capex Percentage Working capital reduced to 3.8%, reaching target of below 4% Managing CAPEX in line with guidance o Future Proof driving investments in the quarter 3.8 Target 4% CAPEX NOK million 20 last four quarters Percent of revenue Target corridor presentation 8

9 Market highlights Order backlog All-time high order backlog NOK 18.4 bn o Backlog distributed over more customers o Tendency in the market towards shorter contracts o EVRY Financial Services NOK 8.3 bn (+NOK 2.1 bn since `) o Strategic win in Oil & Gas; Centrica NOK 40 million o Swedish Defence Group; SEK 0 million New signings NOK 5.2 bn o EVRY Financial Services NOK 3.0 bn o EVRY Sweden NOK 0.8 bn o EVRY Norway NOK 1.4 bn Order backlog NOK billion Order backlog NOK million Later 18.4 EVRY Financial Services EVRY Sweden EVRY Norway 20 presentation 9

10 Growth Financial Services - delivering on strategy Next generation core bank and payment solutions Strategic wins supporting Cards growth strategy Long-standing agreements SpareBank 1 NOK 2.0 bn Sparebanken Vest NOK 0.8 bn Will migrate to EVRY`s next generation banking platform Significant Nordic growth potential EVRY hosted international BIAN conference in Oslo, June 24-27, 20 Renewal of Card agreement with Nordic tier 1 bank Extended scope to all Nordic countries and Baltic area NOK 90 million/ 3 years A breakthrough in retail with NorgesGruppen New customer NOK 55 million/ 5 years 20 presentation 10

11 EVRY 20 Segments

12 Highlights & Key figures EVRY Financial Services sharp margin improvement Revenue NOK 921 million (906) o Organic growth of 1% o Solid growth in revenue from solutions portfolio and cards o New sale affected by large renegotiations NOK million Y/Y Revenue %* EBITA % EBITA margin 10.2% 8.4% CAPEX Employees * Organic growth EBITA up to NOK 94 million (76) o Favourable revenue mix o Initiatives on operations cost control starting to pay off Margin development EVRY Financial Services Percent Target corridor 6 3 EBITA-margin - moving average last 4 quarters 20 presentation

13 Highlights & Key figures EVRY Sweden positive revenue development Revenue NOK 910 million (839) o Organic growth of 6% driven by mobility EBITA at NOK 48 million (46) o One working day less with an effect of NOK -6 million o SME operations, mobility and healthcare performing well o FTE reductions of 44 giving effect from o Reduced margins in consulting - Introducing business lines that will improve margins in the long run NOK million Y/Y Revenue %* EBITA % EBITA margin 5.3% 5.5% CAPEX Utilisation 71.7% 70.5% Working days Employees 2,260 2,334 *Organic growth Margin development EVRY Sweden Percent Target corridor 2 EBITA-margin - moving average last 4 quarters 20 presentation

14 Highlights & Key figures* EVRY Norway modest revenue growth Revenue NOK 1,577 million (1,569) o Double-digit growth in health o Application management deliveries to Norway Post declining from EBITA NOK 71 million (85) o One working day less with a negative effect of NOK 7 million o FTE reductions of 1 giving effect from o Reduced margins in regional consulting - Introducing business lines that will improve margins in the long run * Revised accounting standard for Joint Arrangements (IFRS ) implemented and 20 numbers restated accordingly *Organic growth Margin development EVRY Norway* Percent NOK million Y/Y Revenue %* EBITA % EBITA margin 4.5% 5.4% CAPEX Utilisation rates 68.1% 68.3% Working days Employees Nordic Global Sourcing 3,432 2, EBITA-margin - moving average last 4 quarters 3,424 2,673 Target corridor 20 presentation

15 p r e s e n t a t i o n EVRY 20 Outlook

16 Market outlook Sweden Positive underlying trends with increased exports and greater demand for services. Improving global outlook projected to support continued growth, GDP outlook maintained IT services market is improving supported by positive trends Market outlook Norway Positive developments and improved confidence about the market situation, projections for GDP growth maintained. Recap of guiding from CMD Above-market growth for the period 20 to 2016 o Adjusted for less revenue from DNB EBITA margin target for EVRY > 8% in 2016 Target margin corridors for the segments kept at existing levels CAPEX corridor of 3-5% of revenue also confirmed Healthy demand for Project services, with increasing price differentiation in the market Strong demand for IT operations in the SME segment 20 presentation 16

17 Summary ` Record high order backlog of NOK 18.4 billion Strategic wins for EVRY Financial Services Positive organic growth of 2% EBITA of NOK 180* million, in line with last year Improved in EVRY Financial Services Flat in EVRY Sweden Reduced in EVRY Norway Operational cash flow of NOK 6 million (104) Working capital target of 4% reached (3.8%) Manning reductions program, phase one completed * Before non-recurring items 20 presentation 17

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19 p r e s e n t a t i o n EVRY 20 Appendix

20 Key consolidated figures for the Group (NOK million) 20 20* Change (%) 1H 20 1H 20* Change (%) Operating revenue %** %** EBITDA % % EBITA before non recurring items % % EBITA % before non recurring items 5.5% 5.5% 4.9% 5.0% EBIT before non recurring items % Non-recurring items EBIT % % Net financial items % EBT % % EPS (NOK)*** % % Employees Net interest bearing debt/ebitda * Revised accounting standard for Joint Arrangements (IFRS ) implemented as of January 1 20 and 20 numbers restated accordingly ** organic growth, *** Before non-recurring items 20 presentation 20

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