Atea Asa · OSL:ATEA

Atea Asa — Ementor — Q4 2007 Earnings Presentation

35 slides from Atea Asa's earnings presentation, Jan 31, 2008

  1. Slide 1: Ementor ASA Q4 2007

    Ementor ASA Q4 2007 January 31, 2008 CEO Claus Hougesen

  2. Slide 2: Group – Q4 highlights

    Group — Q4 highlights ) entor 3 Sa SONEX ATER TOPNORDIC®—sé (

  3. Slide 3: Q4 – Strong financial performance

    Q4 – Strong financial performance „ Revenue of MNOK 4338.2 in Q4 2007 – Growth of 9.1%, adjusted for currency effects and loss of employee home-pc in Sweden (MNOK 140.7 + MNOK 354.6 equal to MNOK 495.3) „ EBITDA of MNOK 216.0, up 8.9% – Before MNOK 4.7 in share based income „ EBITDA margin of 5.0%,

  4. Slide 4: Group – 2007 highlights

    Group – 2007 highlights First “normal” accounting year with Ementor, Topnordic and Atea together

  5. Slide 5: Strong revenue and earnings in 2007

    Strong revenue and earnings in 2007 Rev enue and EBITDA dev elopment MNOK 13500 10,0% 13417 13400 8,0% 13289 13300 6,0% MNOK Revenue EBITDA 13200 4,0% 3,7% 13100 2,6% 2,0% 13000 0,0% . 2006 2007 „ Revenue of MNOK 13,417 and 5.7% underlying growth, adjusted for employee home-pc in Sweden (MNOK 594.9)

  6. Slide 6: Double digit growth in services revenue

    2 digit growth in services revenue Services revenue growth for full year 2007 3000 2500 +15.9% 2198 +14.4% 1896 2000 MNOK 1657 1500 1000 500 0 2005 2006 2007 „ Service revenue of MNOK 2197.8, up 15.9% in 2007 and 24.7% in Q4 „ Product revenue of MNOK 11218.9, up 3.9% in 2007 and 6.7% in Q4 - Adjuste

  7. Slide 7: Strong cash flow from operations in 2007

    Strong cash flow from operations in 2007 Cash flow from operations 600 521 400 MNOK 200 0 -200 -400 -244 2006 2007 „ Cash flow from operations of MNOK 521.3 in 2007 „ Ordinary investments increased to MNOK 121.9 „ Investments in acquisitions of MNOK 226.0 7

  8. Slide 8: Acquisitions completed in 2007

    Acquisitions completed in 2007 „ 9 acquisitions in 2007 – 3 in Denmark – 3 in Norway Acquisitions in 2007 – 1 in Finland – 1 in Sweden – 1 in Baltic region „ EV/EBITDA (07E) multiples of 2.8 – 5.5 paid on acquisitions in 2007 „ Acquisition of Sonex Group (Baltics) completed in January 2008 „ Q1 2008

  9. Slide 9: Low operational gearing

    Low operational gearing Operational Gearing 6 5 Net Interest Bearing Debt / EBITDA 4 3 2,3 2 1,1 1 0 2006 2007 „ Net interest bearing debt of MNOK 541.9 as of December 31, 2007, reduced from 781.0 end of 2006 „ Operational gearing of 1.1, improved from 2.3 in 2006 „ Equity ratio of 31.2% improved fr

  10. Slide 10: Countries

    Countries ) entor 3 Sa SONEX ATER TOPNORDIC®—sé (

  11. Slide 11: Norway – strong performance continues with Q4 EBITDA margin of 7.0%

    Norway – strong performance continues with Q4 EBITDA margin of 7.0% (MNOK) Q4’07 Q4’06 y-o-y Full year 2007 Full year 2006 y-o-y Total revenue 1076.6 943.3 14.1% 3221.0 2698.4 19.4% EBITDA* 75.5 59.8 26.3% 178.9 70.0 155.6% EBITDA margin 7.0% 6.3% - 5.6% 2.6% - EBIT 67.4 48.2 39.8 152.9 19.2 696.4%

  12. Slide 12: Denmark – continuously strong performance

    Denmark – continuously strong performance (MNOK) Q4’07 Q4’06 y-o-y Full year 2007 Full year 2006 y-o-y Total revenue 1563.0 1370.0 14.1% 4651.1 4449.6 4.5% EBITDA* 84.5 75.9 11.3% 193.8 132.8 45.9% EBITDA margin 5.4% 5.5% - 4.2% 3.0% - EBIT 65.6 65.5 0.2% 140.5 51.7 171.8% * Before share based compe

  13. Slide 13: Sweden – Q4 EBITDA margin of 3.8%

    Sweden – Q4 EBITDA margin of 3.8% (MNOK) Q4’07 Q4’06 y-o-y Full year 2007 Full year 2006 y-o-y Total revenue 1246.2 1717.0 -27.4% 4 119.0 4 751.6 -13.3% EBITDA* 46.9 63.6 -26.3% 114.0 136.5 -16.5% EBITDA margin 3.8% 3.7% - 2.8% 2.9% - EBIT 34.4 57.8 -40.5% 86.2 61.5 40.2% * Before share based compen

  14. Slide 14: Sweden – increasing market pressure

    Sweden – increasing market pressure „ Regionalised organisational structure in full operation „ Increased market pressure – Successful sales focus event (”crazy days”) in November 2007 – New powerful marketing plan roll-out in 2008 „ eSHOP back-end integration project planned to be finalised in Q1 –

  15. Slide 15: Finland – Positive full year earnings

    Finland – Positive full year earnings (MNOK) Q4’07 Q4’06 y-o-y Full year 2007 Full year 2006 y-o-y Total revenue 463.8 473.3 -2.0% 1 452.3 1 553.4 -6.5% EBITDA* 2.5 2.9 -13.8% 14.1 -8.7 - EBITDA margin 0.5% 0.6% - 1.0% -0.6% - EBIT -0.4 1.6 - 7.9 -36.3 - * Before share based compensation „ Q4 revenu

  16. Slide 16: Finland – Increasing market pressure

    Finland – Increasing market pressure „ Increased market pressure during Q4 has resulted in many new customer leads „ Sales focus event (”crazy days”) is now a quarterly event „ Newly employed Country Sales Director and CFO in full operation from November 2007 „ We are convinced that we will generate

  17. Slide 17: Group

    Group (MNOK) Q4’07 Q4’06 y-o-y Full year 2007 Full year 2006 y-o-y Total revenue 4338.2 4471.7 -3.0% 13416.7 13289.3 1.0% EBITDA* 216.0 198.4 8.9% 502.1 344.7 45.7% EBITDA margin 5.0% 4.4% - 3.7% 2.6% - EBIT 190.0 172.6 10.1% 381.1 -19.5 - * Before share based compensation „ Q4 revenue growth of 9.1

  18. Slide 18: IT market outlook

    IT market outlook ) entor 3 Sa SONEX ATER TOPNORDIC®—sé (

  19. Slide 19: 2008 – Nordic IT market outlook

    2008 – Nordic IT market outlook 10 IT market growth rates 8 Q3 07 forecast 5,9 5,8 6 5,0 5,0 4,7 % 4,2 4,3 4,6 Q1 08 forecast * 4 2 * preliminary 0 2007 2008 2009 2010 Source: IDC, January 2008 “Growth rates in Nordic IT spending are likely to continue around 2007 levels, representing a downward adj

  20. Slide 20: Baltic IT infrastructure market

    Baltic IT infrastructure market IT infrastructure market development NOK bn 12 10,0 10 9,4 8,8 8,1 8 7,3 6,5 6 4 2 0 2007 2008 2009 2010 2011 2012 Source: IDC, November 2007 „ Natural part of many of our Nordic customers’ markets „ IT spending per capita is 10-12% of level in Nordic countries „ High

  21. Slide 21: Ementor takes lead position in Baltic region through acquisition of Sonex Group

    Ementor takes lead position in Baltic region through acquisition of Sonex Group „ Largest IT infrastructure company in Baltic countries „ Represented in 10 cities in Lithuania, Latvia, Estonia and Russia Revenue split on countries „ 400 employees Estonia Russia 1% Latvia 5% „ Revenue of MNOK 552.2 i

  22. Slide 22: Summary

    Summary „ Strong financial performance both full year and Q4 2007 „ Strong cash flow „ Low operational gearing „ Positive market growth rates expected „ On track with 20:10:1 corporate target „ Maintaining our financial guidance for 2008 with EBITDA margin of 4.0% and revenue growth 22

  23. Slide 23: Q&A

    Q&A „ Presentation and quarterly report are available at – www.ose.no – www.ementor.com/reports „ Webcast of the presentation – www.ementor.com/webcast „ Next presentation – April 24 2008 „ General Investor Relations information – www.ementor.com/IR – Ementor holds both the “I” and “E” mark awarded

  24. Slide 24: For further information please contact

    For further information please contact: General inquires, please send a mail to investor@ementor.com Claus Hougesen President & CEO, Ementor ASA Mob+45 25 43 51 62 claus.hougesen@ementorasa.com Rune Falstad CFO, Ementor ASA Mob +47 906 14 482 rune.falstad@ementor.com 24

  25. Slide 25: Q4 2007 results fact pack

    Q4 2007 results fact pack ) entor 3 Sa SONEX ATER TOPNORDIC®~—s« (

  26. Slide 26: Information

    Information Pro forma include restated full period figures for Ementor, Topnordic, Atea, Informatikk and Tre65. Pro forma figures for other operations include only currently owned operations. Actual figures include Topnordic from 8 March 2006 and Atea from 10 August 2006. Actual figures for other op

  27. Slide 27: Financial Position

    Financial Position Financial position (Actual in MNOK) 31.12.2006 31.12.2007 Net interest bearing position -781,0 -541,9 Interest bearing debt 1 429,2 988,2 Working capital ratio 2,9 % 2,4 % Cash reserve 933,6 846,2 Equity 1 754,0 2 100,4 Goodwill/intangible assets 1 964,8 2 193,2 Equity ratio 27,2

  28. Slide 28: Group Balance Sheet

    Group Balance Sheet Balance sheets Actual (amounts in MNOK) 31.12.2007 31.12.2006 Assets Deferred tax asset 97,4 0,0 Goodwill 2 007,6 1 799,9 Other intangible assets 185,7 164,9 Property, plant and equipment 104,6 70,1 Receivables/investments 4,1 58,8 Non-current assets 2 399,4 2 093,7 Inventories 3

  29. Slide 29: Group Income Statements

    Group Income Statements Ementor Group Pro forma Actual (Amounts in MNOK ) Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Consulting & Service revenue 472,3 461,3 411,9 550,6 520,2 541,8 482,5 665,6 299,2 330,6 363,7 517,7 494,6 530,9 482,5 665,6 Produ

  30. Slide 30: Q4 - Financial performance, country actual and pro forma

    Q4 - Financial performance, country actual and pro forma Financial Performance Country Actual Pro forma (amounts in MNOK) Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Norway 481,7 449,3 415,7 777,0 631,5 689,6 676,4 1 076,6 634,7 615,5 504,9 943,3 7

  31. Slide 31: Income Statements – Denmark

    Income Statements – Denmark Denmark Pro forma Actual (Amounts in NOK million) Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Consulting & Service revenue 141,2 139,0 132,7 182,3 158,1 188,4 171,8 241,0 115,9 139,3 132,6 182,1 158,1 188,4 171,8 241,0 P

  32. Slide 32: Income Statements – Sweden

    Income Statements – Sweden Sweden Pro forma Actual (Amounts in NOK million) Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Consulting & Service revenue 144,4 147,4 129,7 172,8 169,1 163,5 129,1 189,9 51,6 62,3 104,8 169,3 167,6 162,6 129,1 189,9 Produ

  33. Slide 33: Income Statements – Norway

    Income Statements – Norway Norway Pro forma Actual (Amounts in NOK million) Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Consulting & Service revenue 153,1 149,1 129,7 169,5 170,2 168,8 156,0 188,6 130,4 125,2 112,5 141,1 146,1 158,7 156,0 188,6 Pro

  34. Slide 34: Income Statements – Finland

    Income Statements – Finland Finland Pro forma Actual (Amounts in NOK million) Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Consulting & Service revenue 33,6 25,8 19,8 25,9 22,7 21,2 20,9 30,8 1,4 3,8 13,9 25,3 22,7 21,2 20,9 30,8 Product revenue 375

  35. Slide 35: Income Statements – Logistics

    Income Statements – Logistics Logistics Pro forma Actual (Amounts in NOK million) Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Consulting & Service revenue - - - - - - 4,8 2,9 - - - - - - 4,8 2,9 Product revenue 615,1 592,7 533,0 904,2 603,3 599,5 5

Ementor — Q4 2007 Earnings Presentation on 6ix