Slide 1: BTS Group AB (publ) Q3 2016
BTS Group AB (publ) Q3 2016 Stockholm, Nov 18, 2016 Henrik Ekelund President and CEO Copyright © 2015 BTS
Slide 2: Our Vision
Our Vision The global leader in turning strategy into action.
Slide 3: Q3 2016 summary
Q3 2016 summary Profit after tax up 9% Improved results in all business units, except North America Measures to improve US profitability, lower cost base as of Q3 BTS Italy/Cesim shows positive revenue and profit development Significant digital investments – rapid growth in number of users
Slide 4: North America
North America 1. Progress in increased efficiency 1. - Higher marketing and sales activity level 2. - Cost reductions 2. Continued efforts to increase share of wallet per account 1. - Broader range of services - Stronger account management Copyright © 2015 BTS | 4
Slide 5: APG – action plan on track
APG – action plan on track 1. Launch new solutions 2. Enhance marketing 3. Hire new partners Copyright © 2015 BTS | 5
Slide 6: BTS digital solutions
BTS digital solutions Continued investments in digital solutions during 2016, 3-4 MUSD A new virtual assessment platform launched Several core simulations digitized, allowing virtual delivery ChangR app revenue growing quickly Copyright © 2015 BTS | 6
Slide 7: Market in Q3
Market in Q3 • Stable market • Strong growth in Europe and Other Markets • Success in winning large global programs Copyright © 2015 BTS | 7
Slide 8: Q3 2016
Q3 2016 Jul – Sep 2016 Jul – Sep 2015 Change. Total Revenue, MSEK 265.3 248.6 8%* EBITA 28.6 26.4 8% EBIT 27.1 25.4 6% Profit before tax 26.9 25.3 6% Profit after tax 18.2 16.7 9% EPS 0.98 0.89 9% EBITA margin 11% 11% - EBIT margin 10% 10% - *Currency adjusted Copyright © 2015 BTS
Slide 9: Q3 2016 Revenue and margin per business unit
Q3 2016 Revenue and margin per business unit Jul – Sep 2016 Jul – Sep 2015 Change.* EBITA Margin BTS North America 121.6 135.9 -11% 12%(13) BTS Europe 40.7 32.4 39% 5%(2) BTS Other Markets 75.3 56.3 36% 15%(13) APG 27.7 24.0 14% 1%(1) Total Revenue, MSEK 265.3 248.6 8% 11%(11) *Currency adjusted Cop
Slide 10: Jan-Sep 2016
Jan-Sep 2016 Jan – Sep 2016 Jan – Sep 2015 Change. Total Revenue, MSEK 771.3 751.5 5%* EBITA 72.4 77.0 -6% EBIT 68.8 73.8 -7% Profit before tax 68.2 73.8 -8% Profit after tax 45.8 49.1 -7% EPS 2.46 2.63 -7% EBITA margin 9% 10% EBIT margin 9% 10% *Currency adjusted Copyright © 2015 BTS
Slide 11: Jan-Sep 2016 Revenue and margin per business unit
Jan-Sep 2016 Revenue and margin per business unit Jan – Sep 2016 Jan – Sep 2015 Change.* EBITA Margin BTS North America 380.9 390.2 -2% 11%(12%) BTS Europe 120.0 115.3 10% 7%(9%) BTS Other Markets 189.9 158.2 28% 12%(12%) APG 80.6 87.8 -8% 0%(2%) Total Revenue, MSEK 771.3 751.5 5% 9%(10%) *Currency
Slide 12: BTS’s market and our growth agenda
BTS’s market and our growth agenda Copyright © 2015 BTS | 12
Slide 13: BTS’s leadership and strategy implementation offer
BTS’s leadership and strategy implementation offer Strategy execution Leadership development Transforming sales organizations Copyright © 2015 BTS | 13
Slide 14: BTS focuses on the people
BTS focuses on the people We believe people learn best by doing For 30 years, BTS has designed powerful experiences that have profound and lasting impact on people and their careers It’s strategy made personal Copyright © 2015 BTS | 14
Slide 15: BTS Global Footprint
BTS Global Footprint Copyright © 2015 BTS | 15
Slide 16: Market drivers
Market drivers High demand for strategy alignment and transformation solutions, especially from industries undergoing rapid change Demand for global delivery of leadership development, e.g. within pharmaceutical, accounting and software industries. BTS is one of the few global players. Trend m
Slide 17: Superior business results and ROI sets BTS apart
Superior business results and ROI sets BTS apart Discovery-based learning Broad range of innovative and practical solutions with proven, high impact Global presence Deep customization Global presence Close and long standing customer relations
Slide 18: Ten Year Revenue Growth
Ten Year Revenue Growth Copyright © 2015 BTS | 18
Slide 19: How we generate growth
How we generate growth 1. Talent growth 2. Grow revenue and share of wallet per account Average growth 3. Innovation over 10 years ● - Digital 14% ● - Content 4. New geographies 5. Acquisitions Copyright © 2015 BTS | 19
Slide 20: Acquisition strategy
Acquisition strategy Company Year Country 1. Aims to strengthen and expand base Wizerize 2013 Denmark for growth and service offering 2. Complementary solutions Fenestra 2014 USA 3. Expand geographic reach AVO 2015 South Africa 4. Focus on small to mid size businesses Synergy 2015 Australia 5. Talen
Slide 21: Profit before tax, 2005-2015
Profit before tax, 2005-2015 Copyright © 2015 BTS | 21
Slide 22: How to reach our EBITA margin goal of 15%
How to reach our EBITA margin goal of 15% 1. Increase billability 2. More efficient project execution 3. Reduce management and overhead through better systems and processes 4. Increase license share through digital solutions 5. Optimize pricing 6. Reduce Digital Investments as % of revenue – current
Slide 23: Outlook 2016
Outlook 2016 Profit before tax is expected to be in line with the previous year Copyright © 2015 BTS | 23
Slide 24: Total return 2005 - YTD 2016
Total return 2005 - YTD 2016 120 100 80 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 BTS B SIX Return Index OMX Stockholm Small Cap Index Copyright © 2015 BTS | 24
Slide 25: 10 Largest shareholders Sep 30, 2016
10 Largest shareholders Sep 30, 2016 Name A shares B shares Total holding Capital % Votes % Henrik Ekelund incl. companies 816 000 3 189 034 4 005 034 21.5 43.1 Nordea 0 2 991 938 2 991 938 16.0 11.4 Lannebo Microcap funds 0 2 871 054 2 871 054 15.4 10.9 Stefan af Petersens, incl. companies 37 800 2
Slide 26: Questions?
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Slide 27: Contact details
Contact details Investor Relation Contact: Michael Wallin Head of Investor Relations michael.wallin@bts.com Tel: +46-8-587 070 02 Cell: +46-708-78 80 19 www.bts.com Copyright © 2015 BTS