Atea Asa · OSL:ATEA
Atea Asa — Ementor — Merger or Acquisition (July 2006)
23 slides from Atea Asa's merger presentation, July 2006
Slide 1: Ementor ASA Company Presentation
Ementor ASA Company Presentation June/July 2006
Slide 2: Disclaimer
Disclaimer This presentation and its appendices (jointly the “presentation”) is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any financial instruments in any jurisdiction to any person to whom it is unlawful to make such an offer or
Slide 3: Disclaimer, cont’d
Disclaimer, cont’d No reliance may be placed for any purposes whatsoever on the information and statements contained in this presentation or on their completeness. No representation or warranty, express or implied, is given by or on behalf of Ementor or any of its advisors or any other person as t
Slide 4: Present today
Present today Jo Lunder (1961), President and CEO – Joined Ementor in February 2005 – Board member of Vimpelcom and Ferd Holding – Prior positions include Chairman, President, CEO and COO of Vimpelcom – Managing Director Telenor Privat – Deputy Managing Director of Telenor Mobil – Management posit
Slide 5: Present today
Present today Ib Kunøe (1943), Chairman – Chairman in Ementor from March 2006 – Owner and President of Consolidated Holdings A/S – Founder of Mercuri Urval companies in Europe – Co-owner/Chairman of the Board in Huset Sand, Unicare Nordic A/S and Telmore A/S – Chairman of the Board in Columbus IT
Slide 6: Ementor acquires Atea
Ementor acquires Atea Transaction highlights Ementor ASA acquires all shares in Atea Holding AB for NOK 891 mill (SEK 1.05 bn) on a cash and debt free basis (Enterprise Value) Atea generated pro forma revenues of NOK 6.7 bn and pro forma EBITDA of NOK 135 mill in 2005 Creates the leading provi
Slide 7: Atea highlights
Atea highlights Financial development (NOK mill) Second largest provider of IT infrastructure 6 800 160 150 solutions and products in the Nordic region 135 6 700 133 140 No. 1 market positions as provider of IT 6 600 120 infrastructure solutions and products in Sweden EBITDA excl. one-offs and F
Slide 8: Atea is a perfect match ...
Atea is a perfect match ... The combined company will be characterised by: Pan-Nordic leading position – No. 1 position as independent provider of IT infrastructure solutions and products in each of the four Nordic countries #3 provider of IT infrastructure solutions and products in Europe Bro
Slide 9: ... with complementary geographical presence
... with complementary geographical presence A total pro forma revenue base of NOK 13 bn Total: NOK 2.3 bn Total: NOK 4.5 bn 4,0 4,0 3,6 3,0 3,0 2,0 2,0 2,0 0,9 1,0 0,3 1,0 0,0 0,0 Em entor/ Atea Em entor/ Atea Topnordic Topnordic Total: NOK 4.5 bn Total: NOK 1.7 bn 4,0 4,0 3,3 3,0 3,0 1,6 2,0 2,0 1
Slide 10: ... and more of same product mix
... and more of same product mix Ementor/Topnordic* Atea* Combined * Services Services & Cons. & Cons. Services 16 % 9% & Cons. 22 % Softw are 20 % Softw are 16 % Software 12 % Hardware 66 % Hardw are Hardw are 68 % 71 % The combined group has a balanced product mix – Targeting a product mix of 60
Slide 11: Creates the #3 in Europe
Creates the #3 in Europe - Solid platform for further growth and geographic expansion Pro forma revenues of NOK 13 bn - Largest IT company on Oslo Stock Exchange in terms of revenues More than 3,100 employees Highly effective e-shop solutions Strong sales organisation European players (in NOK) Most
Slide 12: Preliminary pro forma figures
Preliminary pro forma figures Pro forma 2005 Q1 2006 (in NOK mill) Ementor Atea Ementor Revenues 6 211 6 725 1 524 EBITDA 44 135 23 EBITA 1) -67 105 6 Equity 1 333 1 313 Net interest bearing debt -157 -146 1) Before one off items Atea expected to be consolidated in Ementor figures from August 2006
Slide 13: “Best in class” business model
“Best in class” business model - Key to obtain premium margins Real time electronic integration between customers and suppliers Online with more than 60 distributors and manufacturers More than 130,000 different products Approx. 60% of the transactions in Customer e DKK +4 billion Topnordic
Slide 14: Synergies
Synergies Expected annualised synergies are roughly estimated to NOK 200 mill including the synergies from the merger between Ementor and Topnordic Synergies expected to be derived from – Improved purchasing power towards suppliers ~ NOK 50 mill – Reduction of IT costs ~ NOK 35 mill – Reduction
Slide 15: Financial targets and benchmarking
Financial targets and benchmarking The Group will aim for a profitable growth – Revenue growth of up to 2-3% p.a. in the short term – Growth in line with Nordic IT markets growth forecast of some 5-6% p.a. 1) from H2 2007 – EBITDA margins of up to 4% by 2008 – CAPEX of some 0.5% of sales (NOK 70 -
Slide 16: Nordic market is attractive for the combined group
Nordic market is attractive for the combined group – could generate higher margins Attractive market and GDP growth of 6% next three years with a strong economy across the Nordic countries Few Nordic competitors left except from global OEMs Importance of local presence throughout the countries
Slide 17: The last year has been a year of transformation
The last year has been a year of transformation H2 2005 H1 2006 Major restructuring measures Merger with Topnordic in February 2006 implemented in all countries Merger integration process on track Sale of Finnish operation Sale of M-Net in Denmark Sale of outsourcing businesses in Norway
Slide 18: Summary and strategy going forward
Summary and strategy going forward Maintain and consolidate Nordic position – Build and maintain customer base – Extraction of synergies – Lean and focused operations Growth outside Nordic region Strong cash flow expected “Best in class” e-shop solution Enhancing and strengthening purchasi
Slide 19: For further information please contact:
For further information please contact: General inquires please send a mail to investor@ementor.no Jo Lunder President & CEO Mob +47 900 80 842 Jo.lunder@ementor.no Rune Falstad CFO Mob +47 906 14 482 Rune.falstad@ementor.no Karine Mathiesen Communication Director Mob +47 916 26 166 karine.mathiesen
Slide 20: Other information
Other information For more information, please see information on the following web sites – www.ementor.com/ir – www.topnordic.dk – www.atea.se For a detailed description of other information, like e.g. risk factors which applies to Ementor, legal disputes and other important information, please
Slide 21: Ementor shareholders and share price
Ementor shareholders and share price 20 largest shareholders in Ementor Ementor share price development Shareholders Shares held Share Consolidated Holdings A/S 24 365 453 31,96 % 40 10000 Carliis Group A/S 8 160 334 10,70 % Nordea Bank Denmark S/A Nordea (DK) cca 4 659 753 6,11 % 9000 35 ABG Sundal
Slide 22: Attractive Nordic IT growth rates
Attractive Nordic IT growth rates Growth rates 2005 – 2008e split by each Nordic country 9,0 % 2005 2006 2007 2008 8,0 % 7,0 % 6,0 % 5,0 % 4,0 % 3,0 % 2,0 % 1,0 % 0,0 % Sw eden Denm ark Norw ay Finland Î Expected growth of some 6% p.a. over the next 3 year period across the Nordic region Source: IDC
Slide 23: Attractive growth in the Nordic IT market
Attractive growth in the Nordic IT market - Split by product segments (figures in USD mill) Sweden Denmark 18 000 CAGR: 18 000 CAGR: Services Hardware Packaged software Services Hardware Packaged software 15 000 3 593 15 000 3 376 6.9% 2 972 3 162 12 000 2 580 2 777 12 000 5 047 3.2% 2 298 2 442 6.9