First step in future global sourcing. Extended partnership with Telenor: Strategic wins Application Services:

Transcription

1 EDB Business Partner > slide 1 ENTERING 2007 AT HIGH SPEED First step in future global sourcing Acquiring Infopulse Ukraine with 300 employees Extended partnership with Telenor: IT Operations in Sweden; TCV NOK 300 million Strategic wins Application Services: Volvo, Ericsson, Ekornes TCV NOK 200 million EDB Business Partner > slide 2

2 Q4 HIGHLIGHTS GROUP Strong revenue growth; 4Q revenue of NOK million Group +25% Y/Y Sweden +257% Y/Y Application Services +22% Y/Y (organic growth) EBITA; NOK 159 million EBITA margin 10.0% Cash flow from operations; NOK 378 million 4Q signings; NOK 850 million Order backlog; NOK 11 billion EDB Business Partner > slide 3 KEY FIGURES Q GROUP (NOK million) Q Q Y/Y Operating revenue 1,588 1,269 25% Operating costs 1,429 1,131 26% Operating profit before amortisation (EBITA) % EBITA % 10.0 % 10.9 % EBIT before non-recurring items % Non-recurring costs - 5 Profit before tax % Cash flow from operations before restructuring % Operational investments (CAPEX) % EPS before non-recurring items (NOK) % EPS (NOK) % No. of employees 3,849 2,664 EDB Business Partner > slide 4

3 OPERATING REVENUE GROUP NOK mill Q1 Q2 Q3 Q EDB Business Partner > slide 5 EBITA MARGIN GROUP 12 % 10 % 8 % 6 % 4 % 2 % 0 % Q1 Q2 Q3 Q EDB Business Partner > slide 6

4 CASH FLOW FROM OPERATIONS GROUP NOK mill Q1 Q2 Q3 Q Note: Before non-recurring items EDB Business Partner > slide 7 ORDER BACKLOG NOK 11 BILLION NOK million ORDER BACKLOG DISTRIBUTED Total order backlog Later IT Operations 9,150 3,009 2,796 1,940 1, Solutions 1, Application Services Total order backlog 10,988 3,952 3,195 2,221 1, % of total 36% 29% 20% 12% 3% EDB Business Partner > slide 8

5 Full year Highlights and Key Figures EDB Business Partner > slide 9 SIGNINGS 2006 Top 10 NOK million 1. Gjensidige Bank Sparebanken Sandnes Kommunalarbetarförbundet St. Olav Hospital City of Oslo Nordea Bank Public Roads Administration Samhall Sparebanken Sogn og Fjordane Aktia Bank 50 Total top Total ,100 EDB Business Partner > slide 10

6 HIGHLIGHTS GROUP 2006 FULL YEAR Gaining share 2006 with strong growth Revenue growth: +20% Y/Y to NOK 5.8 billion EBITA NOK 541 million Doubling Swedish Operations Revenue NOK 1,338 million EBITA at Group level 20% increase in operational cash-flow Dividend NOK 1.10 / share; +10% Application services unit established 1,000 employees with unique competencies Fastest growing segment of IT-market EPS contribution from acquisitions NOK 0.40 Secured lower cost base EDB Business Partner > slide 11 KEY FIGURES 2006 GROUP (NOK million) Y/Y Operating revenue 5,822 4,858 20% Operating costs 5,281 4,355 21% Operating profit before amortisation (EBITA) % EBITA % 9.3 % 10.3 % EBIT before non-recurring items % Non-recurring costs Profit before tax Cash flow from operations before restructuring % Operational investments (CAPEX) % EPS before non-recurring items (NOK) % EPS (NOK) % No. of employees 3,849 2,664 EDB Business Partner > slide 12

7 REVENUE DISTRIBUTION 2006 By business area By geography Solutions 20 % Appl Services 16 % Sweden 25 % IT Operations 64 % Norway 75 % 2006 Proforma figures EDB Business Partner > slide 13 REVENUE DISTRIBUTION 2006 By industry Banking and finance Public sector Retail and industry Telecom Proforma figures EDB Business Partner > slide 14

8 IT Operations Highlights and Key Figures EDB Business Partner > slide 15 Q4 HIGHLIGHTS IT OPERATIONS First quarter ever above NOK 1 billion in revenue EBITA margin; 9.2% Improved cost efficiency Expansion of Apoteket partnership Den Danske Bank NOK 36 million B2B e-invoicing ready for roll-out Potential customer savings 50% Q1 07 Target Group; 12,000 companies Unique solution transaction based pricing New signings NOK 350 million City of Oslo The Norwegian Public Roads Administration EDB Business Partner > slide 16

9 KEY FIGURES IT OPERATIONS (NOK million) Q Q Y/Y Operating revenue 1, % Cost of goods sold Salaries and related costs Ordinary depreciation Other operating costs Total operating costs % Operating profit before amortisation (EBITA) % EBITA % 9.2 % 9.4 % Operational investments (CAPEX) No. of employees 1,847 1,662 EDB Business Partner > slide 17 Solutions Highlights and Key Figures EDB Business Partner > slide 18

10 Q4 HIGHLIGHTS BANK & FINANCE / PUBLIC SOLUTIONS Continued profitable growth Revenue +1% Y/Y EBITA margin; 14.0% Reorganised management and sales force Extended Nordic footprint Aktia Bank signed; NOK 50 million Ready for further expansion in Finland Strong corebank/ i-flex pipeline Launch of unique EDB Election Solution City of Trondheim as first customer New signings NOK 470 million EDB Business Partner > slide 19 KEY FIGURES SOLUTIONS (NOK million) Q Q Y/Y Operating revenue % Costs of goods sold Salaries and related costs Ordinary depreciation 2 3 Other operating costs Total operating costs % Operating profit before amortisation (EBITA) % EBITA % 14.0 % 20.0 % Operational investments (CAPEX) 3 11 No. of employees EDB Business Partner > slide 20

11 Application Services Highlights and Key Figures EDB Business Partner > slide 21 Q4 HIGHLIGHTS APPLICATION SERVICES Strong profitable organic growth Revenue +22% Y/Y EBITA margin; 13.0% Billable utilisation 81.7% Nordic signings; NOK 350 million Volvo, Ericsson, Astra Zeneca New Nordic account; SAS Group SAP Roll-out for Ekornes EDB Business Partner > slide 22

12 KEY FIGURES APPLICATION SERVICES (NOK million) Q Q4 2005* Y/Y Operating revenue % Costs of goods sold Salaries and related costs Ordinary depreciation 0 1 Other operating costs Total operating costs % Operating profit before amortisation (EBITA) % EBITA % 13.0 % 10.6 % Operational investments (CAPEX) 1 - No. of employees *Proforma EDB Business Partner > slide 23 Future prospects Key drivers for profitable growth EDB Business Partner > slide 24

13 1. KEY 2007 MARKET TRENDS Nordic IT Services market; NOK 117 billion Sweden SEK 49 billion (+5% Y/Y) Norway NOK 21 billion (+6% Y/Y) Nordic consolidation to continue Regional / local players with 60% share Global sourcing to secure growth Key customers issues in 2007 Projects that enable business growth Flexible technology infrastructure Consolidation of organisation and operations Risk management and governance EDB Business Partner > slide FIRST STEP IN FUTURE GLOBAL SOURCING Acquiring Infopulse Ukraine Revenue NOK 40 million solid profit 54% revenue growth Y/Y Positioned to scale International customer base 300 highly skilled / certificated employees Transaction Acquiring 60%; USD 6 million Option to acquire all shares Separate profit center in EDB 3 joint projects initiated EDB Business Partner > slide 26

14 3. EDB GLOBAL SOURCING EDB Nordic Existing IT capacity 3,850 employees 3rd party capacity Eastern Europe (EDB nearshore) Additional sourcing through acquisition of Infopulse Ukraine 300 employees 3rd party sourcing Asia (EDB offshore) Strategic co-operation with i-flex Co-operation with SAP-specialist Subcontractors for development and management of customer systems EDB Business Partner > slide EXTENDED PARTNERSHIP WITH TELENOR EDB to support all Telenor IT in Sweden First step; Telenor Mobile Server- and application management More than 400 servers 100+ applications Storage and backup solutions LOI with TCV of NOK 300 million Final agreement February`07 5 years contract 25 employees in Karlskrona EDB Business Partner > slide 28

15 Summary EDB Business Partner > slide 29 A STRONG 2006 ENTERING 2007 AT HIGH SPEED Q4 Revenue + 25% Y/Y Strong Full Year cash-flow; +20% Y/Y Dividend NOK 1.10 / share; +10% Executing acquisition strategy with rapid integration Order Backlog NOK 11 Billion Improved 2007 cost base Establishing Nearshore in Ukraine Positioned for profitable growth EDB Business Partner > slide 30