Interim presentation Second quarter 2014

Transcription

1 Interim presentation Second quarter 2014 Sverre Hurum. CEO Erik Stubø. CFO 28 August 2014

2 Highlights g in the second quarter Strong focus on digitalization and mobility Reduced demand from the Oil and Gas sector Revenues and EBIT Operating revenues decreased 2.8 percent to NOK million (y-o-y) Revenues and number of employees MNOK and number EBIT down by 16.9 percent to NOK million (y-o-y) New assignments within Oil and Gas, Power Supply, Retail and Public Services 945 employees 13 new in the quarter 51 new in the past 12 months Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 0 Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 2

3 Peer comparison Revenues Number of employees EBIT-margin NOK million and SEK million* Number* Percent* Knowit Knowit HiQ Acando HiQ Bouvet HiQ Cybercom Cybercom Cybercom Acando Knowit Bouvet Bouvet Acando Itera Itera Itera * All figures are per Q ,000 1,500 2,000 0% 5% 10% 3

4 Operational Review

5 Client development Existing clients* Accounted for 90.9 percent of revenues in Q2 14 New customers** Customers won over the past year generated revenues of NOK 25.0 million in Q2 14 Revenues customer split MNOK Existing customers* New customers (LTM)** * Existing customers defined as those customers invoiced in the corresponding quarter last year ** New customers defined as customers won since end of corresponding quarter last year - Q2'13 Q2'14 5

6 Client overview Decreased share of revenues from Oil and Gas Growth in health, service industry and public administration Ownership distribution Percentage 100% 90% 80% 70% Public Sector distribution Percentage 100% Increased share of revenues from 60% 50% 60% 50% customers own by 40% 40% Private the government 30% (nationally or locally) 30% 20% 90% 80% 70% 20% Other Other services Transportation Retail Power supply Public administration Oil and gas 10% 10% 0% Q2'13 Q2'14 0% Q2'13 Q2'14 6

7 Changes in Oil and Gas Reduced activity in Statoil Many opportunities connected to new players on the shelf Experience from Statoil proves valuable 7

8 Trust from public sector Norwegian Armed Forces Second largest customer of Bouvet Frame agreement extended by one year The Norwegian National Collection Agency Maintenance and further development (5+1+1 years) Total value approx. NOK 100 million New orders within professional systems Municipality of Oslo Municipality of Trondheim New frame agreements Municipality of Bergen: Information security Hordaland d county authority: Web-solutions 8

9 Growth within Health Care 9

10 Business systems on all platforms New customer in the transport sector Ordered a full ERP-system with mobile clients for all drivers Viking Redningstjeneste Ordered a new mobile solution for their drivers Long-term customer Statkraft Implemented a new mobile solution to support the maintenance of power plants Long-term customer 10

11 Growth within Digital Communication Skjermbilde fra VM 2016 Skiskyting World Championship Biathlon 2016 DNV GL 11 New TV player for NRK

12 Employees 945 employees at the end of the second quarter 13 new employees in Q new employees in the past 12 months Average number of employees in the quarter up 6.0 percent from Q2 13 Number of employees end of quarter Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Annual growth in number of employees Percentage 25% 20% 15% 10% 5% 0% Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 12

13 Regional organisation Trondheim 349 Sesam 13 Bergen Group management and staff: Haugesund Stavanger Kristiansand Sandvika Oslo Ørebro Stockholm 51 Sandefjord Skien Arendal 45 Malmø 13

14 Financial Review

15 Key figures Three months ending Twelve months ending MNOK Change % Change % Operating revenue % % Operating profit (EBIT) % % EBIT margin 8.6% % 8.4% 7.4% 13.7 % Ordinary profit before tax % % Profit for the period % % EPS (fully diluted) d) % % Net cash flow operations N/A % Equity ratio 34.5 % 32.8 % 34.5 % 32.8 % Cash and cash equivalents % % Number of employees (end of period) % % Number of employees (average) % % 15

16 Top line slightly reduced Revenues decreased by 2.8 percent y-o-y Revenues from own consultants down 0.9 percent to NOK million Revenues from sub-contracted consultants reduced by 14.1 percent to NOK 34.5 million Sub-contracted consultants share of revenues was 12.5 percent, down from 14.1 percent in Q2 13 Billing rate decreased d 3.0 percentage points from Q2 13 Prices for group hourly services increased 2.8 percent from Q2 13 Revenue split (quarterly figures) MNOK Own consultants Sub-contracted consultants 250 Other Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Revenue split (12 months rolling average) MNOK Own consultants Sub-contracted consultants Other 0 Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 16

17 Reduced earnings Operating profit decreased y-o-y in Q2 14 EBIT margin of 8.6 percent compared to 10.0 percent in Q2 13 Operating expenses decreased by 1.3 percent compared to Q2 13 Other operating expenses increased 1.7 percent 59 workdays in Q2 14 one less than in Q2 13 EBIT and EBIT margin MNOK and Percent 40 EBIT EBIT margin % 10% 0 0% Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 EBIT and EBIT margin (12 months rolling) MNOK and Percent 120 EBIT EBIT margin % 15% 10% % 20-0% Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 17

18 Solid cash flow Cash flow from operations Cash flow from operations (per quarter) Positive NOK 18.0 million in Q2 14, up from NOK negative 2.2 million in Q2 13 Positively affected by changes in accounts receivable and paid tax Rolling 12 months Operational cash flow over the last 12 months was NOK million MNOK Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Cash flow from operations (LTM) MNOK Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 18

19 Creating shareholder value Investment Calculator NOK and number of shares 20,000 Value of NOK 16, ,000 Value Number of shares , , , , ,000 6,000 4,000 2,000 Investment of NOK 4, May-07 May-08 May-09 May-10 May-11 May-12 May-13 May Compound Annual Growth Rate of 22 percent 19

20 Outlook

21 Outlook and summary Cost cut within Oil and Gas Continued strong focus on digitalization in all sectors Increased competition will challenge profitability Strong adaptability opens for further growth and improved profitability in the long term 21

22 Shareholders as of Investor Number of shares % of total VARNER KAPITAL AS % STENSHAGEN INVEST AS % MP PENSJON PK % HURUM SVERRE FINN % KLP AKSJE NORGE VPF % VERDIPAPIRFONDET DNB NORDIC TECHNO % VEVLEN GÅRD AS % KOMMUNAL LANDSPENSJONSKASSE % STUBØ ERIK % VERDIPAPIRFONDET HANDELSBANKEN % STOREBRAND NORGE I % VERDIPAPIRFONDET EIKA NORGE % TELENOR PENSJONSKASSE % J.P. MORGAN CHASE BANK N.A. LONDON % VERDIPAPIRFONDET DNB NORDEN (III) % STOREBRAND VEKST % DYVI INVEST AS % VERDIPAPIRFONDET DNB SMB % RIISNÆS STEIN KRISTIAN % VOLLE ANDERS % Number of shares held by the 20 largest shareholders % 22

23 Appendix

24 Customer and project mix Project mix Variable contracts account for 95.5 percent of total revenues Client portfolio The 10 largest customers represent 43.8 percent of total revenues down from 51.4 percent in Q2 13 The 20 largest customers represent 57.3 percent of total revenues down from 64.9 percent in Q2 13 Variably priced contracts share of revenues Percentage 100% 90% 80% 70% 60% 50% Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 10 largest customers share of revenues Percentage 100% 75% 50% 25% 0% Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 24