SOPRANO PLC Arto Tenhunen CEO COMMUNICATIONS DIGITAL & COMMERCE CONSULTING & TRAINING www.soprano.fi
SOPRANO KEY FIGURES 2013 The leading Nordic consulting company combining communication and information technology FINLAND 68 % REVENUE SWEDEN 31 % REVENUE 2013 EUR 17 million ESTONIA 2 % EBIT 2013 EUR 0.8 million COMMUNICATION AND PR SOPRANO COMMUNICATIONS DIGITAL SERVICES SOPRANO DIGITAL E-COMMERCE SOPRANO COMMERCE CONSULTING SOPRANO CONSULTING TRAINING SOPRANO TRAINING 3 countries 6 cities 150 consultants FINLAND 78 % PERSONNEL SWEDEN 16 % ESTONIA 6 %
SOPRANO KEY FIGURES 2013 WITH MIF The leading Nordic consulting company combining leadership, communication and information technology REVENUE 2013 with MIF EUR 25.1 million REVENUE WITH MIF FINLAND 77 % SWEDEN 21 % ESTONIA 1 % RUSSIA 1 % EBIT 2013 with MIF EUR 0.4 million 4 countries 10 cities 220 consultants COMMUNICATIONS DIGITAL & COMMERCE TRAINING & CONSULTING PERSONNEL WITH MIF FINLAND 81 % SWEDEN 12 % ESTONIA 4 % RUSSIA 3 %
SOPRANO S GROWTH SOPRANO1996 OMX ML-MARKET 2004 NASDAQ OMX PRELIST 2007 NASDAQ OMX MAIN LIST 2014 5 Communication and technology startups Webstudio search engine 2000 Kampanja media 2000 Aidas Consulting 2001 Mobile TV 2002 Uusi Toimisto media 2003 CityPaper media Baltia 2004 IFRS reporting 2005 Composer software Asapsoft 2008 Brain Alliance 2009 Pipfrog 2011 E-commerce software PHP and Magento software Promode & Aspectum 2012 Tieturi & Informator 2013 Electronic materials Mobile training MIF Group 4/2014 Leadership Communications Export coaching Virtual training Continuous services Consulting Own products Revenue growth million EUR 25.1 +200.4 % 17.0 +51.2 % +3.4 % +31.4 % 3.2 3.3 4.3 2.1 +22.6 % +6.7 % 5.3 5.7 2007 2008 2009 2010 2011 2012 2013 2013 WITH MIF
SOPRANO CLIENTS RIKSDAGEN FÖRSÄKRINGSKASSAN POLISEN FÖRSVARSMAKTEN SKATTEVERKEN CONTINUOUS OUTSOURCING SERVICES IN SWEDEN CUSTOMER ANALYSIS 2005 = 100 % 15 = 28 % 424 = 86 % AALTO UNIVERSITY TIETO RUUTU.FI VALO 292 = 80 % 61 = 50 % TELIASONERA ABB CITY OF TURKU FEDERATION OF FINNISH 100 = 60 % MINISTRY OF FINANCE TECHNOLOGY INDUSTRIES ELISA MEHILÄINEN 15 BIGGEST CLIENTS (in alphabetical order) OP-POHJOLA SOL ONNINEN ABB Barona Ericsson Oikotie Opetustarvike Polisen TEBOIL SINEBRYCHOFF SUOMEN MESSUT TALENTUM MEDIA VÄRITUKKU SPOTIFY UNIVERSAL MUSIC COCA COLA ADIDAS PERKKO Försvarsmakten Hermia KELA Microsoft Nokia Riksdagen Sanoma News Tieto Ministry of Finance
SOPRANO KEY FIGURES EUR million 2012 2013 Change NET SALES EBITDA Net sales 5.7 17.0 200 % EBIT 0.6 0.8 23 % Highest share price 0.68 EUR 1.10 EUR EUR million % EUR million % 20 20 1.2 20 1.17 Lowest share price 0.42 EUR 0.44 EUR Average share price 0.51 EUR 0.77 EUR Market value 5.4 16.8 17.00 15 15 0.9 15 12.9 % EUR million 2012 2013 Change EBITDA margin % 12.9 % 6.9 % EBIT margin % 11.0 % 4.5 % Net cash from operating activities 0.58 0.67 Goodwill 2.43 5.63 11.0 % 10 10 5 5 5.66 4.5 % 0.73 0.6 10 0.3 6.9 % 5 Interest-bearing net liabilities 0.19 3.48 Equity 2.45 4.76 0 0 0 0 2012 2013 2012 2013 Equity per share 0.20 EUR 0.31 EUR Earnings per share 0.03 EUR 0.04 EUR Return on equity % 23.6 % 13.6 % Net sales EBIT margin % EBITDA EBITDA margin %
SOPRANO LUCRATIVE BUSINESS DRIVERS IN 2014 CORE MAIN BUSINESS NEW ACQUISITIONS COST STRUCTURE FOLLOW UP Digital revolution is a megatrend Change creates demand Soprano provides the solutions Continuous services Consulting Own products Acquisitions in line with the strategy 100 day program Quick integration Reducing administrative costs Synergy between units Increasing billable work Billable work % Marginal profit of consulting services Rewards when exceeding set goals STRATEGY A lasting competitive adventage comes from combining leadership, communication and technology STATEMENT In our digitalized world, skilled employees are hundred times more productive than their unskilled colleagues
SOPRANO 6 REASONS TO INVEST IN A SUCCESS STORY CLEAR FOCUS DIGITAL REVOLUTION IS A MEGATREND SOLUTION REVOLUTION PROFITABLE GROWTH MARKET LEADER IN A GROWING MARKET DEMAND CHANGE TRACK RECORD ON SUCCESSFUL ACQUISITIONS SOPRANO S RECIPE FOR SUCCESS 1. Know your customers 2. Refresh your processes 3. Utilize your technology 4. Target your communications EXCELLENT CUSTOMER RELATIONSHIPS INCREASINGLY BETTER RESULTS 5. Train your employees
SOPRANO: KEY PERFORMANCE INDICATORS 2014 2016 STRATEGIC SUCCESS FACTORS DESCRIPTION KEY PERFORMANCE INDICATORS Customer acquisations and cross-selling Value-based selling Cross-selling Customer management Offer book : more than 3 times revenue / month New Offers: more than 2 times revenue / montrh Cross-selling more than 20 % revenue Customers who recommend Soprano: more than 80 % Products and services management Products and service consepts Project management quality Skills development Continuing services: more than 10% growth / year Billing rate / productivity ratio: more than 80% Gross margin / person 100 000 euroa / year One training / employee / year Products and services management Self-managing teams Responsibility and accountability Entrepreneurship spirit and rewarding Work motivation: more than 8 (scale 4 10) Sick leave: under 3 % Bonus 10 % exceeding the target margin Organic growth Internationalization Acquisitions Organic growth Internationalization Acquisitions Organic growth: more than 15% / year The operating margin growth; more than 2 % points Internationalization: 1 new country / year Acquisitions: at least 1 new company / year
SOPRANO OWNERS, DIVIDENDS AND SHARE PRICE DEVELOPMENT Major shareholders March 31st, 2014 Shareholder Shares % 1. Tenhunen Arto 4 784 605 30.92 Share price development 1.4.2013 1.4.2014 2.0 2. Oy Herttakuutonen Ab 2 835 869 18.33 3. Allocation Point Oy 1 070 550 6.92 4. Kuusisto Teppo 1 049 931 6.79 5. Soprano Oyj 1 045 057 6.79 1.5 6. Työeläkeyhtiö Elo 1 000 000 6.46 7. Setelium Oy 400 000 2.59 8. Mäkelä Kai 159 244 1.03 9. Vennamo Pekka 150 000 0.97 10. Sijoitus Oy 140 000 0.9 1.0 Dividends EUR 2012 2013 Earnings / share 0.03 0.04 0.5 EUR 2013 2014 Shared dividends / capital returns to shareholders / share 0.04 0.03 (+0.02) Proposal 1.4.13 1.5.13 1.6.13 1.7.13 1.8.13 1.9.13 1.10.13 1.11.13 1.12.13 1.1.14 1.2.14 1.3.14 1.4.14