Interim Report Second Quarter 2012

Transcription

1 Interim Report CEO Arne Mjøs CFO Frank Martinsen Oslo, 11th July 2012 Page 1

2 Highlights in the second quarter Revenue NOK 112 million EBITDA EBIT NOK 7.5 million NOK 3.2 million Improving profitability Profit is improving sequentially according to plan adjusted for seasonal variations. Increasing cost efficiency Good demand in all key Nordic markets Revenues NOK million EBIT NOK million Page 2

3 Business Review Page 3

4 Market environment IT is recognized (by biz leaders) as a key lever for growth and productivity Digitalization and innovation are becoming a critical business driver, underpinned by IT and communication. Service design, self-service solutions, collaboration, business intelligence and social media are high growth areas Global sourcing is now commonplace delivered as a component of most service offerings New solutions and enterprise architecture will be required to support more agile provisioning of IT services Consumer-oriented IT-devices, applications and mobility Multi-sourcing, cloud provisioning and hybrid data centers Complexity is escalating New security/privacy concerns IT Services Market CAGR NOR 4,0 % SWE 4,1 % DK 2,4 % FIN 3,5 % 2012 WE 0,9 % CEE 8,2 % US 6,5 % Page 4

5 Vision: Making a difference. Always Bryne Oslo Stockholm Copenhagen Lviv Kiev Leading provider of innovative solutions in the Nordic region Driving rapid conversion of business opportunities through smart use of IT Strong business intimacy with Nordic clients Headquarter in Oslo 5 regional offices Full life cycle delivery with integrated nearshoring Full range of services, from idea to realization Enhanced value with blended rates Diversity and business agility The right blend of business, communication and technology skills Enthusiastic and motivated employees that really want to make a difference Page 5

6 Targeting the Nordic market Communication Consulting & Solutions IT Operations Communication is a vital part of digitalization and innovation Strong consulting practice enhances business relationship providing crosssales and delivery Long term agreements with capabilities to take on full life cycle responsibilities for customers IT operations with balanced cloud integration ensures recurring revenues and market visibility Page 6

7 Vision Strategy Values Page 7

8 Larger customer engagements and increasing order backlog Itera s Premium Top 3 customers should become substantially larger, MNOK in average. Today Target Increasing business value through consulting, communication and delivery management Full life cycle delivery including nearshoring, application management and high value infrastructure services Strong project culture and well defined methodologies The Itera way. Strong management-to-management relationships. A-clients should continue to grow to become MNOK Key drives for strong revenue visibility = robust profitable growth as well as creating barriers to competition Order backlog New Biz Renewals This figure is for illustration purposes only. Page 8

9 Strong sales development - new or expanded agreements Page 9

10 Improving scalability and cost efficiency with nearshoring 1/3 of Top 10 customers are buying nearshoring services At a higher growth rate than local services Developing new services and concepts Testing as a Service (TaaS) Mobile Services Taking lead roles in key communities i.e. implementing data protection guidelines for outsourcing, offshoring and cloud in the Nordics and Ukraine *) Proforma Page 10

11 Financial Review Page 11

12 Key figures Adjusting for seasonal variations, profit is improving sequentially according to plan. Page 12

13 Statement of income Gross profit (net revenues) increased by 4 % in Q and 11 % year-to-date while increasing cost efficiency. Page 13

14 Statement of financial position Equity ratio of 44.3%, up by 4.8 % since year end Increasing accounts receivable and work in progress are related to milestone payments. Page 14

15 Statement of cash flow Operational cash flow in Q2 is affected by MNOK 2 in increased work in progress and MNOK 12 in reduced short term liabilities. Investment activities are returned to more normal level. Page 15

16 Quarterly development Operating revenue NOK million Employees End of period EBITDA NOK million EBIT NOK million *) Proforma Page 16

17 Outlook Page 17

18 Outlook Customer demands remain strong in all Nordic markets Profitable growth and cash flow are key focus Scaling up our nearshoring capability will continue to ensure future competitiveness Larger projects and customers should gradually increase visibility, efficiency and scalability Itera makes no forecasts Page 18

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20 Top 20 shareholders Page 20