EDB Business Partner ASA Norway s largest provider of IT services

Transcription

1 EDB Business Partner ASA Norway s largest provider of IT services

2 The EDB group Turnover expected to be well in excess of NOK 3 bn. in 1999 Over 2,200 employees Largest Norwegian consulting company Largest computer operations facility in Norway Leading supplier of systems solutions for telecommunications, banking and finance, public sector and the health service, and call centres 2nd largest IT-company on the Oslo Stock Exchange

3 Locations USA: New Jersey Philadelphia*, Denver* & San Diego* Netherlands: Amsterdam Irland: Dublin UK: London* Norway: Bergen, Bodø, Bø, Drammen, Fredrikstad, Grenland, Kongsberg, Kristiansand, Lillehammer, Molde, Oslo, Stavanger, Tromsø, Trondheim & Tønsberg Sweden: Stockholm. France: Paris * Telesciences

4 Corporate vision and business concept To be a leading expertise-based IT group, with a focus on systems solutions, consultancy and computer operations. To help our customers make profitable use of information technology by offering cost effective and up-to-date IT solutions which strengthen the customer s competitive position in a networked economy. To use areas of particular expertise as a basis for expansion outside the Nordic region.

5 Business model Consultancy services Product related consultancy services (system integration and implementation) Software Banking and finance Telecoms Public sector Trade and industry E-commerce Internet WAP Computer operating services (outsourcing, ASP)

6 Professional Services - Advisory services - Development & integration - Implementation & training Software Solutions - Applications for banking, telecom, public sector & ERP Outsourcing and Operations - Central and decentralized platforms New Technologies & Skills integrating traditional Areas of IT - Internet & web-enabling - One-to-one concepts - WAP applications -Networking -ASP -E-Business - Customer Relation Management Systems -Linux

7 Employees Consulting and professional services: 900 Outsourcing, ASP, infrastructure: 500 Software : 300 Internet, E-business, WAP 300

8 Banking & Finance Main needs and drivers Consolidation and globalization Productivity demands and self-service concepts New channels - network services Customer relations Our solutions and services Complete range of modern banking systems Internet banking systems and WAP-applications Customer Relations Management Systems Outsourcing / ASP 400 consultants who understands the business and the technologies

9 Telecom Main needs and drivers Deregulation Pricing and billing systems main competitive weapon Understanding customer behaviour to create new products Convergence of technologies Mediation and interconnect in a global deregulated world Our solutions and services Customer Care and Billing System on centralized and decentralized platforms Customer Relationship Management System Mediation and interconnect systems 700 consultants and developers who understand the business and the technologies

10 Public Sector Main needs and drivers Demand for higher productivity Need for outsourcing and ASP as a result of expertise drainage Political awareness of need for increased investments in IT Need for standardization and integration Our solutions and offerings A complete range of modern systems for public administration Outsourcing and ASP 300 consultants who specialize in IT for the public sector

11 Industry & Trade Main needs and drivers Globalization and efficiency needs Need to integrate the complete value chain New channels for supplies and sales Concentration on core business Our solutions and offerings E-business skills and solutions (B2B and B2C) A leading SAP environment Outsourcing and ASP 300 consultants who understands the business and the technologies

12 Major Customers Telenor Kreditkassen DnB Fokus Bank Postbanken Visa Europay Statoil Shell Esso Coca Cola Norsk Hydro Norske Skog Alcatel Kongsberg Group ABB Norske Meierier SAS Ministry of Finance City of Oslo Storebrand Gjensidige Forsikring

13 Relationship with Telenor Telenor has a 59,6% holding Telenor s ownership interest will be further reduced over time EDB provides mission critical systems and services to Telenor The merged company s relationship with Telenor as a customer is assured through long term contracts The merger of Telia and Telenor creates new opportunities for EDB

14 Main features of the third quarter Operating revenues: NOK 2,444 million (+ 24%) Operating profit: " 83 " (+ 35%) Profit after tax: " 45 " (+ 69%) Merger goodwill depreciated over 20 years and included in the accounts as of Market situation characterised by higher volumes for computer operating services, but some slow down for consultancy services New acquisitions carried out or agreed

15 Profit and loss account for the third quarter 99 YTD Q3 '99 YTD Q3 '98 Change OPERATING REVENUES % EBITDA % Operating profit exc.gwill.deprec % Goodwill depreciation % OPERATING PROFIT % Net financial items % Profit before tax and min. ints % PROFIT AFTER TAX AND MIN.INTS %

16 Results by business area YTD Q3'99 YTD Q3'98 Change Q3 '99 Q3 '98 Change CONSULTANCY SERVICES AND SYSTEMS Operating revenues % % Op. profit exc. gwill. deprec % % Op. margin exc. gwill. deprec. (%) 4,4 1,7 3,7 4,4 COMPUTER OPERATING SERVICES & INFRASTRUCTURE Operating revenues % % Op. profit exc. gwill. deprec % % Op. margin exc. gwill. deprec. (%) 7,5 11,7 12,0 14,4 Operating margin - group (%) 5,7 6,3 7,6 9,4

17 Balance sheet Total fixed assets *) 1,185 1,245 1,092 Total current assets **) 1, ,040 TOTAL ASSETS 2,314 2,198 2,132 Total equity 1,115 1,067 1,039 Minority interests Total long term liabilities Total current liabilities TOTAL LIABILITIES & EQUITY 2,314 2,198 2,132 *) Of which goodwill: **) Of which liquid assets:

18 Telesciences key facts American NASDAQ listed company with 106 employees, turnover NOK 240 million (FY 1998) Systems for Mediation and Call collection - i.e 'traffic gathering' - provide the invoicing basis for Customer Care and Billing systems Weak earnings history in recent years restructuring underway Ca. 50 customers of which 3 of the 4 RBOCs (US West, Ameritech and Southwestern Bell) are the largest Tender offer expiring 22nd of Nov - offer USD million Dependent on 50% acceptance by shareholders

19 Telesciences why? Customer base for EDB 4tel Complementary products Source of additional expertise Makes EDB 4tel one of the leading global players for Mediation and Call collection Gives the internationalisation of EDB 4tel a kick start - and a new corporate culture Additional information: and follow the NASDAQ link

20 The EDB group in 3 years Annual turnover of NOK 6-8 billion Operating profit margin of 10% (exc. goodwill depreciation) A Nordic player for consultancy and computer operating services A global player for telecommunications and banking applications

21 Appendices

22 Turnover and profit by quarter YTD Q3 '99 Q3 '99 Q2 '99 Q1 ' Operating revenues 2, ,772 Op. Profit before gwill. deprec Operating margin 5.6 % 7.6 % 5.9 % 3.5 % 6.8 %

23 Cash flow analysis YTD YTD YTD Cash from operations Cash from/for investment Cash from/for financing Change in liquid assets Liquid assets Liquid assets at end of period

24 Key figures YTD YTD YTD EBITDA per share EPS (post tax, before gwill. deprec.) Cash flow per share Book equity per share (inc. gwill.) Book equity per share (exc. gwill.) Equity ratio (%) inc. gwill Equity ratio (%) exc. gwill Current ratio Op. Margin before gwill. deprec. (%) No. of shares 69,387,113 69,387,113 69,387,113

25 60,00 50,00 40,00 30,00 20,00 10,00 0,00 Performance relative to OSE gen. index Nov 98 - Nov EDB OSE Index

26 Major shareholders (85.4% of 69.7 million shares) Telenor 59.6% NOR Forsikring 0.8% Morgan Stanley and Clients 6.6% Clydesdale Bank PLC 0.8% Bergesen Shipping 3.2% Sig. Bergesen Alm.st. 0.8% Folketrygdfondet 2.4% Rusten Invest 0.7% Avanse Vekst 1.6% Gyldendal Norsk Forl. 0.6% Storebrand Livsforsikring 1.6% Gjensidige Livsfors. 0.5% Arendals Fossekompani 1.2% Vesta Grønt Norden 0.5% Banque International 1.1% Asker & Bærum Budst. 0.4% Fidelity Funds Eur. B.B. 1.0% Aksjefondet Gambak 0.4% Sparebankenes Sikringsfond 0.8% Verdipapirfondet Delphi 0.4%