Building the strongest IT service provider in the Nordics

Transcription

1 CEO Terje Mjøs DNB TMT Conference, 28 August 2013 Building the strongest IT service provider in the Nordics

2 Introduction to EVRY Q Strategy & financial targets 2

3 EVRY Introduction to EVRY

4 Unique position Making a difference in the Nordics 100+ employees Close to our customers 50 cities with capacity to deliver regional offices with specialist competencies Key figures Revenue NOK.7 bn Order backlog NOK 15,1 bn 10,100 employees #1 in Norway #4 in Sweden Shareholders Posten 40% Telenor 30% Listed at Oslo Stock Exchange since 1997 Delivery models across industries and size Selected verticals like Bank & Finance, retail and healthcare Special emphasis on SME customers Selected range of large enterprises Strong competencies 5,000 employees in Norway 2,500 employees in Sweden 2,600 employees Global sourcing 4

5 Reporting segments 2013 Market oriented and simplified structure New segments with P&L reporting and KPIs Geographies Vertical EVRY Sweden EVRY Norway EVRY Financial Services Consulting Solutions IT Operations Supplementary information on revenue and EBITA according to old structure 5

6 EVRY Q Highlights and key figures

7 Key group figures Increased profitability EBITA up 24 % to NOK 180 million (145*) o Sharp increase in margins, 5.5 % ( 4.4 %) o EVRY Norway improving Revenue NOK 3,241 million (3,272) o Organically down 2 % Solid cash flow 1H 13, up from NOK -50 million to NOK 150 million o Cash flow NOK -26 million (70) in Q2 13 Earnings per share (EPS) NOK 0,35 (0,18*) * Revised accounting standard for pension items (IAS19) implemented and 20 numbers restated accordingly 7

8 Development in key figures EBITA last four quarters NOK million Q Q4 10 Q Q1 Q2 Q2 Q3 Adjusted for 20 pension effect and new accounting standard (IAS) for 20 Cash flow last four quarters NOK million 332 Q3 675 Q Q1 Q2 Cash flow last 4 quarter. Pro forma figures in Q4 Q1 Q2 Q3 Q3 Q4 Q4 Q Q1 13 Q2 13 Q2 13 Working capital Percent of revenue Q1 4.8 Q2 5.7 Q3 Average last 4 quarters Comments Q4 Q1 Q2 6.3 Q3 6.0 Q4 5.5 Q1 13 Strong cash flow 1H 13, up NOK 200 million from 1H 5,1 Q2 13 Cash flow Q2 13 NOK -26 million (70) affected by delayed payments of NOK 150 million from Q1 13 Target % 8

9 Highlights & Key figures EVRY Financial Services back to organic growth Revenue NOK 906 million (+4 % ) o Strong sales secures growth EBITA NOK 76 million (+1 %) o Sweden and card services performing well New target margin corridor o Corridor 9- % EBITA margin within 2015 NOK million Q Q2 20 Y/Y Revenue %* EBITA % EBITA margin 8.4 % 8.7 % CAPEX Employees 1,513 1,537 * Organic growth Margin development Financial Services Percent ,3 Target corridor 6 3 Q4 Q1 Q2 Q3 Q4 Q1 13 Q2 13 EBITA-margin - moving average last 4 quarters 9

10 Highlights & Key figures EVRY Sweden continues to adapt to a soft market Revenue NOK 839 million (892) o Market still soft o Organic growth (- 9 %) due to lower hardware sales, especially within mobility EBITA at NOK 46 million (55) o Strong performance in IT Operations New target margin corridor o Corridor 8-10 % EBITA margin within 2015 NOK million Q Q2 20 Y/Y Revenue %* EBITA % EBITA margin 5.5 % 6.1% Capex 18 9 Utilisation 70.5 % 72.1 % Working days Employees 2,334 2,341 *Organic growth Margin development Sweden Percent ,6 6 4 Target corridor 2 Q4 Q1 Q2 Q3 Q4 Q1 13 Q2 13 EBITA-margin - moving average last 4 quarters 10

11 Highlights & Key figures EVRY Norway - increased margins Revenue NOK 1,588 million (1,664) o Revenue decline has stopped when adjusted for announced effects in Enterprise subsegment EBITA NOK 86 million (78) o Utilisation rates up to 68.3 % o Hourly rates increased 2 % New target margin corridor o Corridor 7-9 % EBITA margin within 2015 NOK million Q Q2 20 Y/Y Revenue 1,588 1,664-4 %* EBITA % EBITA margin 5.4 % 4.7 % CAPEX Utilisation rates 68.3 % 66.7 % Working days Employees Nordic Global Sourcing *Organic growth 3,452 2,673 Margin development Norway Percent EBITA-margin - moving average last 4 quarters 3,433 2, Q4 Q1 Q2 Q3 Q4 Q1 13 Q2 13 Target corridor

12 Ambitions towards 2015 Strategy and financial targets

13 EVRY Financial Services Nordic vertical with growth potential Strong market position Vertical with growth potential # 1 - Nordic total # 1 - Norway total # 3 - Nordic Card Processing IT spending banks NOK 36 bn(*) 17% 16% 27% 40% Continue to grow in tier 2/3 in Sweden Entering Finland with card solutions Broaden services portfolio in Norway Expand Card services in UK Significant service offer Norway Sweden Denmark (*) Source IDC Finland Unique capabilities Solutions portfolio for the next generation of banking services Flexible delivery models Complete value chain for Card services to Nordic & UK banks Consulting and project assignments Revenue distribution 20 1% 22% 77% Norway Nordic UK Capacity to deliver in all Nordic countries 1,507 employees in the Nordics Scaling deliveries with Global sourcing 13

14 EVRY Sweden Positioned for profitable growth Strong market position Significant growth potential # 4 in Swedish market overall # 1 in Swedish SME market Leading in Healthcare and Mobility IT services market SEK 43 bn(*) 44% 56 % Grow market share from strong regional positions Growing outsourcing market in SME and Large Significant service offer Outsourcing Project services (*) Source IDC, Excluding customer support Expand business in established vertical positions Unique capabilities Unique delivery model for SME Solutions suite for selected verticals Customer centric and business oriented consulting practices Specialist offerings addressing growth segments such as Mobility and Analytics Revenue distribution 20 33% 51% 16% SME Verticals Other/general Capacity to deliver in 26 cities 2,323 employees in EVRY Sweden Advanced global delivery capabilities within IT operations 14

15 EVRY Norway A market leader in IT services Strong market position Growth potential in subsegments # 1 - Total # 1 - SME market # 1 - Outsourcing IT services market NOK 26 bn(*) 45% 55% Grow market share from strong regional positions Increased share of wallet from customers in verticals Significant service offer Outsourcing Project services (*) Source IDC, Excluding customer support New business in growth segments implementing new technologies Unique capabilities Unique delivery model for SME Consulting key market drivers; mobility, analytics and cloud Strong position in Outsourcing Strong vertical portfolio with potential for profitable growth Revenue distribution 20 26% 41% 34% SME Verticals Other/general Capacity to deliver in 21 cities 3,464 employees in Norway 2,440 employees in India and Ukraine 15

16 Transformation program Future Proof Building the strongest IT Operations center in the Nordics Digiplex building world class data centre by Sept 14 Flexibility and able to deliver new cloud based services Specialised and heterogeneous 18 Datacenters Renegotiated contracts Gjensidige, Posten, Storebrand Industrialisation Sourcing/partnerships Offshoring New Delivery Model Virtualisation Automation New bids New services Modernised 24/7 and New Delivery Model Building new competencies and management capabilities Standardised and Cloud based Industrialised IT Operations 16

17 Buliding the new company Our ambition 2015 Nordic Operations Future Proof Operations Norway Strong new verticals Sweden Continue to attack Financial Services Nordic expansion 17

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