Bts Group Ab Class B · OMXSTO:BTS_B
Bts Group Ab Class B — FY2005 Earnings Presentation
31 slides from Bts Group Ab Class B's earnings presentation, February 2006
Slide 1: BTS Group AB (publ) Full Year Report
BTS Group AB (publ) Full Year Report Presented by: Thomas Ahlerup SVP, Corporate Communications Stefan Brown CFO © BTS Group AB (publ) February, 2006
Slide 2: 2005 – Year End Result
© BTS Group AB (publ) December 9, 2005 2005 – Year End Result • Net revenue for Jan – Dec was up 39 per cent to MSEK 286.1 (205.9), adjusted for exchange rate differences growth was 37 per cent • Net revenue for Q4 increased with 55 percent to MSEK 80.3 (51.9), adjusted for exchange rate differences
Slide 3: 2005 – Year End Result, January - December
© BTS Group AB (publ) December 9, 2005 2005 – Year End Result January - December • Operating profit increased with 59 per cent to MSEK 48.7 (30.7) • The operating margin was 17.0 (14.9) per cent • The result before tax increased with 71 per cent to MSEK 55.1 (32.2) • Result after tax increased with
Slide 4: 2005 – Year End Result, Q4 October - December
© BTS Group AB (publ) December 9, 2005 2005 – Year End Result Q4, October - December • Operating profit increased with 103 per cent to MSEK 14.3 (7.0) • The operating margin was 17.8 (13.6) per cent • The result before tax increased with 106 per cent to MSEK 15.5 (7.5) • Result after tax increased w
Slide 5: BTS Vision
© BTS Group AB (publ) December 9, 2005 BTS Vision “to be the world leader in Business Simulations - enabling how great companies change, learn and improve” 5
Slide 6: The Market & BTS position
© BTS Group AB (publ) December 9, 2005 The Market & BTS position 6
Slide 7: The Market
© BTS Group AB (publ) December 9, 2005 The Market • General economy: we are in the second half of a positive, global business cycle • Corporate training is a growth industry • Over time companies will continue to invest more in training • 7-8% estimated growth per year until 2009* • Demand for corpo
Slide 8: The Market: Business Simulation growth sector
© BTS Group AB (publ) December 9, 2005 The Market • Business Simulation is a growth sector within corporate training • Companies will use simulations more often and for more purposes of business skills training • There are many untapped markets for simulations Geographies Industries Solutions
Slide 9: The USD 11 Billion US Corporate Training Market
© BTS Group AB (publ) December 9, 2005 The USD 11 Billon US Corporate Training Market TrainingCompanies Training Companies Business BusinessSimulation Simulation Specialists Specialists The US Corporate Training Market In-houseTraining In-house Training Companies Companies E-Learning E-Learningcompa
Slide 10: Examples of Business Simulation Competitors
© BTS Group AB (publ) December 9, 2005 Examples of Business Simulation Competitors • Acumen Learning Tech • Insight Experience • Advanced Competitive Strategies • KPMG • Andromedia • Learning Dynamics • Artune • Mega Learning • Ashridge • Novation • Capstone • Paradigm Learning • Celemi • Prism • Ce
Slide 11: BTS Revenue Development
© BTS Group AB (publ) December 9, 2005 BTS Revenue Development 286.1 250 200 SEK Millions 150 100 50 0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 * Sample customers 11
Slide 12: EBIT 1987-2005
© BTS Group AB (publ) December 9, 2005 EBIT 1987-2005 - 18 years of continuous profits Jan - Dec 48.7 MSEK 30 25 20 MSEK 15 10 5 0 05 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 20 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 Sample customers 12
Slide 13: Global Presence - Global Capabilities
© BTS Group AB (publ) December 9, 2005 Global Presence - Global Capabilities • 160+ employees, 22 nationalities • 25 training programs per week across the world • More than 300,000 participants, in 53 different countries, and in 11 languages Sample customers 13
Slide 14: New Clients
© BTS Group AB (publ) December 9, 2005 New Clients 2005 2004 Alstom MSD Adobe ICA Amer Sports Nedbank Aspepeyo Indra Assa Abloy Omnilog AT&T Lindab Bacardi Sony Ericsson Bearing Point Merck BG Schlumberger Capitol One Motorola Coor Service M. Soluziona Carphone Wareh. Novartis Coritel Siemens Spain
Slide 15: BTS Competitive Advantages
© BTS Group AB (publ) December 9, 2005 BTS Competitive Advantages • Great People • Consistent and high quality • Care about and flexibility to the client • Customized simulations • Knowledge about the customer and the industry • Connection to senior management • Global reach • Relationships with cli
Slide 16: Growth Strategies
© BTS Group AB (publ) December 9, 2005 Growth Strategies 16
Slide 17: How can BTS continue to grow?
© BTS Group AB (publ) December 9, 2005 How can BTS continue to grow? • BTS is an explicit growth company • Average growth + 30 per cent Y- o – Y* • Growth strategies include both organic growth and acquisitions Growing existing offices and the people behind them (Talent Tube) Geographical expans
Slide 18: BTS sales opportunities
© BTS Group AB (publ) December 9, 2005 BTS sales opportunities - 7 – 8 years after initial contract Initial contract typically involves top 25 executives Production unit implements new strategy Country to implement strategy Majority of all employees to understand new strategy Sample customers 18
Slide 19: Q4 & Jan – Dec 2005
© BTS Group AB (publ) December 9, 2005 Q4 & Jan – Dec 2005 19
Slide 20: Q4 Market Development
© BTS Group AB (publ) December 9, 2005 Q4 Market Development The global market develops positively The US market shows continued strength The European market continues to improve Australia, South Africa and east Asia is showing a growing demand BTS continues to gain market share Sample custome
Slide 21: Q4 Highlights
© BTS Group AB (publ) December 9, 2005 Q4 Highlights • BTS acquired BGF (Business Game Factory) a Helsinki, Finland based company with the objective to: - Broaden BTS product offering into Internet based Business Tournaments - Use the BGF product offering as a door-opener into new accounts - Use Gen
Slide 22: Jan – Dec 2005
© BTS Group AB (publ) December 9, 2005 Jan – Dec 2005 2005 2004 Jan- Dec Jan- Dec Change Net revenue 286.1 205.9 +39 % (MSEK) EBIT (MSEK) 48.7 30.7 +59 % Earnings Before Tax 55.1 32.2 +71 % (MSEK) Earnings After Tax 36.8 20.4 +80 % (MSEK) Earnings Per Share 6.21 3.44 +81 % (SEK) Operating Margin 17
Slide 23: Q4 2005 – Substantial Growth in both revenues and earnings
© BTS Group AB (publ) December 9, 2005 Q4 2005 – Substantial Growth in both revenues and earnings 2005 2004 Oct - Dec Oct - Dec Change Net revenue 80.3 51.9 +55 % (MSEK) EBIT (MSEK) 14.3 7.0 +103 % Earnings Before Tax 15.5 7.5 +106 % (MSEK) Earnings After Tax 10.7 4.8 +125 % (MSEK) Operating Margin
Slide 24: EBIT per Business Unit – Full Year 2005
© BTS Group AB (publ) December 9, 2005 EBIT per Business Unit – Full Year 2005 Operating 2005 2004 Margin Jan- Dec Jan- Dec Jan- Dec 2005 Total 48.7 30.7 17 % (MSEK) BTS North America 27.2 22.4 15 % BTS Europe 17.9 5.0 20 % BTS Other Markets 3.6 3.3 17 % Sample customers 24
Slide 25: EBIT per Business Unit – Q4 2005
© BTS Group AB (publ) December 9, 2005 EBIT per Business Unit – Q4 2005 Operating 2005 2004 Margin Oct-Dec Oct-Dec Oct-Dec 2005 Total 14.3 7.0 18 % (MSEK) BTS North America 8.7 4.1 17 % BTS Europe 4.8 2.1 20 % BTS Other Markets 0.8 0.8 13 % Sample customers 25
Slide 26: Quarter by Quarter revenue development
© BTS Group AB (publ) December 9, 2005 Quarter by Quarter revenue development 90 79,6 80,3 80 68,3 70 57,9 56,7 60 51,4 51,9 MSEK 50 46,0 45,4 41,2 37,2 38,4 40 30 20 10 0 03 03 03 03 04 05 04 05 04 05 04 05 20 20 20 20 20 20 20 20 20 20 20 20 1 2 3 4 Q Q Q Sample customers Q 26
Slide 27: Summary
© BTS Group AB (publ) December 9, 2005 Summary 27
Slide 28: BTS Future Direction
© BTS Group AB (publ) December 9, 2005 BTS Future Direction “A global company with a broad portfolio of discovery-based learning solutions, serving the world’s leading companies with complete suites of solutions delivered through a verity of methods with outstanding quality” Sample customers 28
Slide 29: 2005 Summary
© BTS Group AB (publ) December 9, 2005 2005 Summary • BTS addressable market is large and growing • BTS is gaining market share • BTS is positioned as a clear leader in business simulations • BTS has a long track record of growth and profitability • BTS has a strong financial position • BTS has a st
Slide 30: Outlook 2006
© BTS Group AB (publ) December 9, 2005 Outlook 2006 Based on continued strong market conditions for BTS, the result before tax is expected to be better than in the previous year . Sample customers 30
Slide 31: www.bts.com
© BTS Group AB (publ) December 9, 2005 For further information please contact: Thomas Ahlerup Senior Vice President Corporate Communication BTS Group AB (publ) +46-768-966 300 thomas.ahlerup@bts.com www.bts.com XSSE: BTS B 31