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
Q4 HIGHLIGHTS GROUP Strong revenue growth; 4Q revenue of NOK 1.588 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 Q4 2006 GROUP (NOK million) Q4 2006 Q4 2005 Y/Y Operating revenue 1,588 1,269 25% Operating costs 1,429 1,131 26% Operating profit before amortisation (EBITA) 159 138 15% EBITA % 10.0 % 10.9 % EBIT before non-recurring items 141 112 26% Non-recurring costs - 5 Profit before tax 130 109 19% Cash flow from operations before restructuring 378 324 17% Operational investments (CAPEX) 83 124-33% EPS before non-recurring items (NOK) 1.01 0.92 10% EPS (NOK) 1.55 0.79 97% No. of employees 3,849 2,664 EDB Business Partner > slide 4
OPERATING REVENUE GROUP NOK mill 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 Q1 Q2 Q3 Q4 2004 2005 2006 EDB Business Partner > slide 5 EBITA MARGIN GROUP 12 % 10 % 8 % 6 % 4 % 2 % 0 % Q1 Q2 Q3 Q4 2004 2005 2006 EDB Business Partner > slide 6
CASH FLOW FROM OPERATIONS GROUP NOK mill 400 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 2004 2005 2006 Note: Before non-recurring items EDB Business Partner > slide 7 ORDER BACKLOG NOK 11 BILLION NOK million ORDER BACKLOG DISTRIBUTED Total order backlog 2007 2008 2009 2010 Later IT Operations 9,150 3,009 2,796 1,940 1,174 231 Solutions 1,666 772 399 281 156 58 Application Services 172 172 Total order backlog 10,988 3,952 3,195 2,221 1,330 289 % of total 36% 29% 20% 12% 3% EDB Business Partner > slide 8
Full year Highlights and Key Figures EDB Business Partner > slide 9 SIGNINGS 2006 Top 10 NOK million 1. Gjensidige Bank 150 2. Sparebanken Sandnes 118 3. Kommunalarbetarförbundet 118 4. St. Olav Hospital 115 5. City of Oslo 100 6. Nordea Bank 62 7. Public Roads Administration 60 8. Samhall 60 9. Sparebanken Sogn og Fjordane 50 10. Aktia Bank 50 Total top 10 883 Total 2006 3,100 EDB Business Partner > slide 10
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) 2006 2005 Y/Y Operating revenue 5,822 4,858 20% Operating costs 5,281 4,355 21% Operating profit before amortisation (EBITA) 541 503 8% EBITA % 9.3 % 10.3 % EBIT before non-recurring items 454 405 12% Non-recurring costs 144 17 Profit before tax 257 356 Cash flow from operations before restructuring 709 591 20% Operational investments (CAPEX) 289 381-24% EPS before non-recurring items (NOK) 3.11 2.77 12% EPS (NOK) 2.51 2.66-6% No. of employees 3,849 2,664 EDB Business Partner > slide 12
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 0 10 20 30 40 50 60 2005 2006 2006 Proforma figures EDB Business Partner > slide 14
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
KEY FIGURES IT OPERATIONS (NOK million) Q4 2006 Q4 2005 Y/Y Operating revenue 1,004 973 3% Cost of goods sold 367 327 Salaries and related costs 309 314 Ordinary depreciation 69 68 Other operating costs 167 173 Total operating costs 912 882 3% Operating profit before amortisation (EBITA) 92 91 1% EBITA % 9.2 % 9.4 % Operational investments (CAPEX) 65 123 No. of employees 1,847 1,662 EDB Business Partner > slide 17 Solutions Highlights and Key Figures EDB Business Partner > slide 18
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) Q4 2006 Q4 2005 Y/Y Operating revenue 319 316 1% Costs of goods sold 45 41 Salaries and related costs 137 139 Ordinary depreciation 2 3 Other operating costs 90 70 Total operating costs 274 252 9% Operating profit before amortisation (EBITA) 45 63-29% EBITA % 14.0 % 20.0 % Operational investments (CAPEX) 3 11 No. of employees 831 754 EDB Business Partner > slide 20
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
KEY FIGURES APPLICATION SERVICES (NOK million) Q4 2006 Q4 2005* Y/Y Operating revenue 300 245 22% Costs of goods sold 17 13 Salaries and related costs 186 156 Ordinary depreciation 0 1 Other operating costs 57 49 Total operating costs 261 219 19% Operating profit before amortisation (EBITA) 39 26 50% EBITA % 13.0 % 10.6 % Operational investments (CAPEX) 1 - No. of employees 976 - *Proforma EDB Business Partner > slide 23 Future prospects Key drivers for profitable growth EDB Business Partner > slide 24
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 25 2. 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
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 27 4. 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
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