EDB Business Partner ASA Computer Operating Services

Transcription

1 EDB Business Partner ASA Computer Operating Services Eivind Kinck, Deputy CEO John-Arne Haugerud, Executive Vice President COS Financial status and targets Area of operations Market and service trends Focus in

2 Key figures for 2001 Operating revenue NOK 5,060m (+ 13 %) EBITA NOK 360m (+ NOK 43m) EBITA margin 7.1 % (+ 0.1%p) Pre-tax profit/-loss NOK -1,311m (- NOK 1,427m) Cash flow from operations NOK 542m (+ NOK 117m) Special factors vs : EBITA includes capital gains of NOK 140m (NOK 20m in 2000) Goodwill written down by NOK 1,262m Net financial items include capital gains/write-downs on shares of NOK - 82m (NOK +28m in 2000) 3200 employees Largest IT company listed on the Oslo Stock Exchange 2

3 Group turnover and EBITA margin % NOK mill % 5.9% 7.1% 7.1% 8% 7% 6% 5% 4% 3% % 1% % Turnover EBITA margin 3

4 Key figures - six months to (MNOK) Change from Operating revenue 2, EBITA (*) EBITA margin 1.4 % %pts EBITA margin (exc. gains/losses option costs) 1.5 % %pts Profit after tax Cash from operations Reduced staff by more than 10% in 1 st half of 02 (*) Specific items account for NOK 83 million of the drop in EBITA (restructuring costs this year, capital gains last year) 4

5 Business areas Consultancy Services (Consulting, project management, e-business for all industries/sectors) Bank Finance Telecoms Computer Operating Services (outsourcing for all industries/sectors) 5

6 Sales by business area - 6 months to (Year 2001) Telecoms 16% (19%) Computer Op. Services 58% (48%) Bank Finance 19% (19%) Consultancy 7% (14%) 6

7 EDB Teamco s family tree EDB Teamco AS EDB Teamco AS EDB Teamco Fellesdata Drift EDB Novit Drift DnB Drift Unigrid EDB ASA drift EDB ASA drift Telenor Dataservice Telenor Bedrift Telenor Teamco Nordata Vestdata Nordata Trønderdata Vestdata Allianse Rogalandsdata Telenor Datatjenester DnC Bergen Bank Teamco Probus AS EDB drift Landbruksdata Samvirke Agderdata Rids Rogalandsdata Televerket IT Teamco IDA 7

8 Computer Operating Services Comprises both centralised and remote operational computer systems, data communications and services for security and publishing EBITA margin of 5.4% in Q2, up 2.4 percentage points from Q1 Turnover up by 12% from Q2 last year Restructuring proceeding as planned Outsourcing agreements for DnB operating as planned in terms of both delivery and realisation of synergy benefits Unigrid subsidiary in Sweden is performing very strongly in all areas, and has now won its first two new contracts since being acquired by EDB 8

9 Computer Op. Services EBITA performance 60 NOK mill Q1 Q2 Q3 Q

10 Key figures - 6 months to Change Operating revenue (mill. NOK) EBITA (mill. NOK) Margin 4,2% 7,5% -3,3 % No. of employees

11 Key figures 5 latest quarters Q2'02 Q1'02 Q4'01 Q3'01 Q2'01 Op. revenue (mill. NOK) EBITA (mill. NOK) Margin 5,4% 3,0% 5,1% -24,5% 6,0% - non recurring costs inc. in EBITA No. of employees

12 Future prospects Computer Operating Services Expect increase in margin to 7-9% in the second half of 2002 Focus on continuing operational stability and increased profitability Increased focus on the Swedish market Expect to see general increase in outsourcing market activity 12

13 Profit margin over the life of a contract + Renewal 0 Loss on equipment Termination of SW agreements Project costs Quality insurance - New contract New contract 13

14 DnB - Case studie Banking finance, telecoms, trade/industry/ public sector Business and Application Services End-to-end Management Application Infrastructure Provider Publishing Customer service Applications database administration Consultancy services system integration Decentralised servers clients Network Data storage Central servers 14

15 DnB - Case studie Resonsibility turned over to EDB TCO 190 emloyees buildings and infrastructure hardware and software subcontracts Transformation completed one organisation costsreductions realized pricing models and SLA s confirmed Transition phase no changes in the operation messure as-is service level confirm pricing models finally agreed SLA s plan next phase Tranformation phase services delivered according to SLA s invoicing according to new pricing model organizational integration implementing Tco standard operational model 15

16 Operating services concept Banking finance, telecoms, trade/industry/ public sector Business and Application Services Application Infrastructure Provider Publishing Customer service Applications database administration Consultancy services system integration Decentralised servers clients Network Data storage Central servers IBM Mainframe, Unix, W2K/ NT, LINUX, AS400, Tandem, Bull DB2, Cincom, IMS, CICS, Oracle, Sybase, SNA, TCP/IP, LAN, WAN... 16

17 Volumes Banking finance, telecoms, trade/industry/ public sector Business and Application Application Infrastructure Services Provider 3,000 3,000Unix Unixand and NT NTservers Decentralised 11,000 11,000 MIPS MIPS on on IBM IBM Applications servere mainframes Consultancy services Nettverk Customer + 6,000 6,000 MIPS MIPS pre-installed for fordisaster service database klienter recovery system Int. administration Ca. Ca TB TB disk disk storage storagecapacity Lagring Ca. Ca TB TB storage storage in incentral centraltape taperobots IBM Mainframe, Unix, W2K/ Automatic NT, LINUX, back-up back-up AS400, of of >1,000 >1,000 Tandem, servers servers Bull DB2, Cincom, IMS, CICS, Oracle, Remote Remote Sybase, operation SNA, of of TCP/IP, 20,000 20,000LAN, work work stations WAN... stations > million million authorised users users!! Publishing Application Infrastructure Provider, figures figures July July Sentrale servere 17

18 Volumes Banking finance, telecoms, trade/industry/ public sector Business and and Application Services Business and Application Services Services Application Infrastructure Provider Decentralised Applikasjon servers Consultancy services database clients system Int. administrasjon > 2,000 applications 35 Kundeservice perday 110,000 batch jobs jobsper perday million A4 A4 sides sidesprinted per peryear 45,000 customer enquires per permonth Publishing 35 million transactions per Network Data storage Central servers IBM Mainframe, Unix, W2K/ NT, LINUX, AS400, Tandem, Bull DB2, Cincom, IMS, CICS, Oracle, Sybase, SNA, TCP/IP, LAN, WAN... 18

19 The Nordic outsourcing market - trends and drivers Market growth despite economic recession Megadeals influence the market growth Rise of utility and rental services (xsp) Customers wants total solutions / service integrators e-solutions requires more secure 24/7 infrastructures Competitiveness require large-scale operations High growth within application outsourcing and BPO e-publishing replaces traditional paper print Continued strong activity in mergers and acquisitions 19

20 The Norwegian market Source : IDC May

21 The Norwegian market Source : IDC May

22 The Swedish market Source : IDC May

23 The Swedish market Source : IDC May

24 The Nordic market CAGR% Denmark % Growth 0 % 12 % 13 % 13 % 13 % 13 % Finland % Growth 20 % 19 % 14 % 13 % 12 % 6 % Norway % Growth 15 % 14 % 12 % 10 % 10 % 8 % Sweden % Growth 0 % 16 % 16 % 13 % 11 % 9 % Total Nordic % 15 % 14 % 12 % 11 % 9 % Source : IDC May

25 Market trends Banking finance, telecoms, trade/industry/ public sector Business and Application Services End-to-end Management Application Infrastructure Provider Publishing Customer service Applications database administration Consultancy services system integration Decentralised servers clients Network Data storage Central servers IBM Mainframe, Unix, W2K/ NT, LINUX, AS400, Tandem, Bull DB2, Cincom, IMS, CICS, Oracle, Sybase, SNA, TCP/IP, LAN, WAN... By YE03 the result of increased focus on operations excellence, end-to-end infrastructure management, and relationship management will hasten the movement of many IT organizations toward a trust-filled relationship with business partners, decreasing the percentage of the ITO s viewed as a cost center from 70% to 50% Source : Meta Group 25

26 Market trends Banking finance, telecoms, trade/industry/ public sector Publishing Business and Application Services Customer service Applications database administration Consultancy services system integration Application Infrastructure Provider Decentralised Decentralised servers servers clients clients Network Consolidation Lagring Data storage Strong growth and consolidation IBM Mainframe, Unix, W2K/ NT, LINUX, AS400, Tandem, Bull DB2, Cincom, IMS, CICS, Oracle, Sybase, SNA, TCP/IP, consolidation LAN, WAN... Central servers With storage purchases predicted to approach half of all IT hardware spending in the next few years, storage services are coming to the forefront of IT services (Gartner Group) 26

27 Market trends Distribute functionality Centralised processing power and data storage Internett/Intranett Web Server Windows terminal Server WEB klient Bruker Internett/Intranett Applikasjons- Server Database Server Datasentral 27

28 Market trends Banking finance, telecoms, trade/industry/ public sector Publishing Business and Application Services Customer service Applications database administration Consultancy services system integration Estimated % 50% increase in spending Application Infrastructure Provider increase in Decentralised servers on onsecurity Nettverk since since11.9 clients (ref. (ref. Meta Meta Group) Group) Lagring Central servers IBM Mainframe, Unix, W2K/ NT, LINUX, AS400, Tandem, Bull DB2, Cincom, IMS, CICS, Oracle, Sybase, SNA, TCP/IP, LAN, WAN... On 23 January 2002, Gartner released the results of a survey conducted in co-operation with the Society for Information Management (SIM). The survey found that found few enterprises have business continuity plans to deal with the consequences of catastrophic damage or physical attacks. Among the findings were: Only 13 percent of enterprises surveyed said they are "mostly" prepared for a major loss of life resulting from catastrophic damage or attacks. Only 28 percent report business continuity plans for dealing with the consequences of physical attacks. 28 Only 36 percent have a plan for complete loss of physical assets and workspace.

29 The most secure operating centre in Europe... 29

30 Market trends Banking finance, telecoms, trade/industry/ public sector Paper Publishing Business and Application Services Kundeservice Electronic services Applikasjon database Consultancy services system integration Application Infrastructure Provider Decentralised servers clients Network Central servers E- E-invoicing (B2C) (B2C) administrasjon Data storage EIPP EIPP (B2B) (B2B) Messaging Archiving IBM Mainframe, Unix, W2K/ NT, LINUX, AS400, Tandem, Bull DB2, Purchasing Cincom, IMS, CICS, Oracle, Sybase, SNA, TCP/IP, LAN, WAN... 30

31 e-invoices as a channel for sales and information My energy portal Content and layout decided by client Product information Product ordering Access to customer service Advice tutorials 31

32 Example of the e-invoice used by Istad 32

33 Areas of focus for 2002 Norway Improved margins Operational reliability Sweden Growth 33

34 Measures to improve margins Synergies from the DnB IT operation Improved capacity utilisation Greater efficiency and cost savings Profitable growth Operational reliability 34

35 Measures implemented for operational reliability Organisational changes have been implemented Verified and tuned technology Working processes and routines thoroughly reviewed Improved risk management system implemented Quality certification retained 5,00 4,00 3,00 2,00 1,00 0,00 Jan KTI Mar Mai J ul Sep N ov Weighted average Weighted average 2000 mnth Target KTI Weighted average

36 Current status in Sweden Stable and profitable operation Pan-Nordic contracts will give cost advantages Established a separate marketing function Co-operate on marketing with CGEY Co-operate with EDB FD on the banking/finance market New contracts and prospects Intend to evaluate acquisition opportunities Positioned for further Nordic consolidation 36