Q2 HIGHLIGHTS GROUP Revenue NOK 1,621 million; +6% y/y Improved margin in all units; EBITA 9.6% Strong organic growth; Sweden +11% y/y Best signings in 3-years; NOK 3.6 bn All-time-high Backlog; NOK 13.1 bn EDB Business Partner slide 2
KEY FIGURES Q2 2007 GROUP (NOK million) Q2 2007 Q2 2006 Y/Y Operating revenue 1,621 1,523 6% Operating costs 1,466 1,385 6% Operating profit before amortisation (EBITA) 155 138 12% EBITA % 9.6 % 9.1 % EBIT 130 111 17% Profit before tax 95 94 1% Cash flow from operations before restructuring 158 147 7% Operational investment (CAPEX) 46 77-40% EPS (NOK) 0.74 0.72 2% No. of employees 3,938 3,960 EDB Business Partner slide 3
KEY FIGURES 1H 2007 GROUP (NOK million) 30.06.2007 Y/Y Revenue Group 3,205 +12% IT Operations 2,018 + 5% Solutions 670 +7% Application Services 600 +67% EBITA Group 297 +14% IT Operations 165 +4% Solutions 99 +4% Application Services 69 +77% EBITA-margin Group 9,3% EDB Business Partner slide 4
2Q 2007 MAJOR SIGNINGS Top 10 Signings NOK million 1. SpareBank 1 Group 2,500 2. Handelsbanken 300 3. GE Money Bank 160 4. SJ & Linkon 100 5. Glitnir (LOI) 65 6. City of Trondheim 60 7. Trondheim 60 8. A-kassor 50 9. Pareto 40 10. LF 35 Total top 10 3,370 EDB Business Partner slide 5
CASH-FLOW FROM OPERATIONS GROUP NOK mill 400 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 2005 2006 2007 Note: Before non-recurring items EDB Business Partner slide 6
REVENUE DISTRIBUTION Q2 GROUP By Business Area By Industry Solutions 22 % Application Services 18 % Telecom 12 % Public 17 % Bank & Finance 41 % IT Operations 60 % Retail & Industry 30 % EDB Business Partner slide 7
ORDER BACKLOG NOK 13.1 BILLION NOK million ORDER BACKLOG DISTRIBUTED Total order backlog 2007 2008 2009 2010 Later IT Operations 9,995 1,530 3,186 2,366 1,605 1,308 Solutions 2,842 546 703 554 362 677 Application Services 246 246 Total order backlog 13,083 2,322 3,889 2,920 1,967 1,985 % of total 18% 30% 22% 15% 15% Order backlog; +18% vs Q1 2007 EDB Business Partner slide 8
Application Services Highlights and Key Figures
Q2 HIGHLIGHTS APPLICATION SERVICES Organic growth; 18% y/y Strong EBITA y/y development High billable utilisation; 84.1% Frame agreements secures further growth (NOK million) Q2 2007 Revenue 309 EBITA 33 EBITA % 10.8 CAPEX 1 Employees 1044 Q2 2006 Y/Y 249 24 % 24 38 % 9.5 0 979 EDB Business Partner slide 10
Solutions Highlights and Key Figures
Q2 HIGHLIGHTS SOLUTIONS SpareBank 1-signing; long term commitment International signings; NOK 250 million i-flex breakthrough with GE Money Bank Customer acceptance and strong demand in Public sector (NOK million) Q2 2007 Revenue 361 EBITA 56 EBITA % 15.6 CAPEX 6 Q2 2006 Y/Y 322 12 % 50 12 % 15.5 2 Employees 901 851 EDB Business Partner slide 12
IT Operations Highlights and Key Figures
Q2 HIGHLIGHTS IT OPERATIONS NOK 1 bn in revenue with improved EBITA New signings NOK 1.9 billion Strong growth in Retail & Industry Establishing low-cost operations unit in Ukraine (NOK million) Q2 2007 Revenue 1,002 EBITA 84 EBITA % 8.4 CAPEX 39 Employees 1,809 Q2 2006 Y/Y 974 3 % 81 4 % 8.3 68-43% 1,923 EDB Business Partner slide 14
Outlook Market trends and future prospects
NORDIC IT MARKET; NOK 250 BN IN 2007 300 000 Strong 1 half 2007; Nordic IT-spending 4.5% growth Services growth exceeds IT-market growth Lack of resources Price increase in application services 250 000 200 000 150 000 Outlook remains firm; IT-services growth at 5% 6% Niches expected to grow 10% 20% Offshoring/nearshoring pick-up Consolidation to continue 100 000 50 000 0 2005 2006 2007e 2008e 2009e 2010e Source: Gartner, IDC, EDB Services Hardware Packaged software EDB Business Partner slide 16
EDB WITH NEW NEARSHORING INITIATIVE Acquisition of Miratech Ukraine 2006 Revenue; USD 5 million (+35% y/y) 220 highly certified employees Acquiring 60%; USD 4.2 to 5.9 million Option to acquire remaining 40% EDB in Ukraine after transaction Annual revenue USD 15 million 570 employees 15% of workforce nearshore EDB Business Partner slide 17
EXPANDING INTERNATIONAL AMBITIONS Strengthened nearshoring Expanding Asian off-shoring International sales - niches Nordic Leadership Oslo Stockholm Copenhagen London Kiev EDB Business Partner slide 18
Summary
A STRONG 1H FOR EDB Improved EBITA in all business units All-time-high backlog of NOK 13.1 bn Gaining share in fastest growing segments of the Nordic IT market International breakthrough with B&F solutions Major nearshore unit established Positioned for further profitable growth EDB Business Partner slide 20