Ratos Ab Class A · OMXSTO:RATO_A
Ratos Ab Class A — Bisnode — Investor Presentation (September 2011)
31 slides from Ratos Ab Class A's investor presentation, Sep 26, 2011
Slide 1: Bisnode – better business decisions
September 26, 2011 Bisnode – better business decisions Johan Wall and Fredrik Åkerman
Slide 2: Bisnode – in brief
Bisnode – in brief Vision To be the leading provider of digital business information in Europe Mission To help our customers maximise sales, minimise business risks and make better business decisions Key findings 2010 Financial targets Annual organic revenue growth Business 197,000 Operations in 17
Slide 3: Core offering
Core offering Relevant decision support information anywhere and anytime Legal Sales – Has my future business – How can I update my dataset partner been involved in any with the latest addresses of my fraudulent transactions? customers? – When was the last time my customers purchased a car? Finance
Slide 4: Bisnode business process
Bisnode business process Scalable, digital business model supporting re-use of information 4
Slide 5: Product segmentation allows for price differentiation
Product segmentation allows for price differentiation Targeting niches with focused and well known local brands Credit segmentation example International data Contract driven High-touch sales High-end Local data Contract driven High-touch sales Frequently integrated with customer syste
Slide 6: Bisnode organisation
Bisnode organisation Optimising synergies and future development Organisation structure • Four regions – Providing core offering of Credit, Marketing and Business Information Solutions – Similar market conditions, business opportunities and local synergies • Two additional business areas – Product I
Slide 7: Digital business information market
Digital business information market Digital information market relatively stable compared to other B2B markets • Relevant market size estimated at Market development SEK 300 billion in Europe Growth • Lower single digit annual growth expected in 2011-2012 • Long term annual growth rate expected to r
Slide 8: Competitive landscape
Competitive landscape Increasing international competition Local / Regional International Marketing Solutions Credit Solutions Business Information Solutions 8
Slide 9: Relevant insight basis for growth
Relevant insight basis for growth Best-in-class products grants pricing power with customers Revenue opportunity Total price for integrated solution Innovation Cleaning Usability Bisnode value-add Aggregation Validation Enhancement Selection Increased data volume Raw data revenues Price for data Tim
Slide 10: Regions – Core offering
Regions – Core offering 17% 83% 10
Slide 11: Bisnode – Revenue and margin per core offering
Bisnode – Revenue and margin per core offering Financial strength and resilience through the cycle 2010 revenue distribution of core offerings Cyclicality of core offerings provided by four regions, % Business Information Solutions 19% Marketing Solutions 40% Credit Solutions Business Information Ma
Slide 12: Region Nordic
Region Nordic Largest region provides stable business with high margins Key highlights Local strong brands • Strong position in all product offerings • Market leader in Marketing and Business Information Solutions in Sweden and pan-regional offering of Credit Solutions • Business Information Solutio
Slide 13: Region DACH
Region DACH Growth fuelled by investments in Germany with high operating leverage Key highlights Local strong brands • Strong offering of credit solutions in all markets • Leverage in Germany and regional segmented credit offering as a result of large investments in a complete data set • Significant
Slide 14: Region BeNeFra
Region BeNeFra Weak development due to financial downturn, lower media spend and operational challenges Key highlights Local strong brands • Strong offering of marketing solutions in all markets • Regulatory restrictions, generally weak demand and changed information needs in the market resulting in
Slide 15: Region Central Europe
Region Central Europe Growth driven by launch of new offerings and sales force expansion Key highlights Local strong brands • Strong offering of Credit Solutions in all markets • Initiatives taken to further increase organic growth • Recently acquired CreditInfo and Poslovna Domena strengthening cur
Slide 16: Business Areas
Business Areas 17% 83% 16
Slide 17: Business area Product Information
Business area Product Information Improved operating margins in market leading “Wer Liefert Was?” Key highlights Local strong brands • Offering advertising based online services and trade press magazines to the manufacturing industry • WLW, leading provider of supplier search services in Germany, 68
Slide 18: Business area Software and Applications
Business area Software and Applications Divestment of non-core businesses with limited synergies Key highlights Local strong brands • Software and consulting services integrating business information to improve customers’ business performance • Stable growth in remaining businesses • Divestments of
Slide 19: Bisnode Group
Bisnode Group 17% 83% 19
Slide 20: Bisnode – revenue and profit 2008-2010
Bisnode – revenue and profit 2008-2010 Stable profit margins while reshaping Bisnode for future growth Financial targets • Annual organic revenue growth of at least 5 per cent • An operating margin (EBITA) of at least 15 per cent Key highlights • In 2005-2010, Bisnode had an annual average growth ra
Slide 21: Bisnode – revenue and margin per area
Bisnode – revenue and margin per area Core offering in main markets provides bulk of profit Revenue distribution %, 2010 EBITA distribution %, 2010 Software and Applications Software and Product 7% Applications Information 7% 10% Product Information Central 11% Europe 4% Nordic Central Europe 43% 4%
Slide 22: Bisnode – operating capital and capex
Bisnode – operating capital and capex Strong focus on working capital optimization Operating capital Working capital development MSEK Capex development 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% 2007 2008 2009 2010 Capex / Revenue Long‐term investement level, 3% 22
Slide 23: Bisnode – cash flow
Bisnode – cash flow Subscription based business model supporting strong cash flow Cash flow statement Cash flow development MSEK * Cash conversion is defined as free cash flow before interest and taxes divided by EBITA excluding capital gains 23
Slide 24: Bisnode Strategy
Bisnode Strategy Think global Act local
Slide 25: Bisnode - on a journey of change
Bisnode - on a journey of change From federation of companies to one Group 1999-2005 2005 2007 2009 2010 2011 Building Bisnode 14 acquisitions to Competence Centres, Talent and Business Information enter new markets CIO focus on shared activities Group from 0 to 4 and expand offering. and synergies.
Slide 26: Bisnode Strategy – Think Global, Act Local
Bisnode Strategy – Think Global, Act Local Strategy with strong focus on growth and synergies • Focus on core businesses Growth potential • Divest non-core activities • Leverage the power of the Group • Enhance organic growth potential • Maximise market position by segmentation • Realize in-country
Slide 27: Bisnode - acquisitions and divestments
Bisnode - acquisitions and divestments Supporting Bisnode growth strategy Key highlights • Bisnode strategy focusing on acquisitions in core business and divestments of non-core assets • Key objective to expand access to data and know-how or to extend market offering by acquisitions • Divestments of
Slide 28: Established history of accretive acquisitions
Established history of accretive acquisitions Smaller bolt-ons allow for more synergy potential Strategic acquisitions EV/EBITDA (x)¹ Bolt-on acquisitions EV/EBITDA (x)¹ 6,2x 5,3x 8,8x 4,3x FY multiple FY + 2 FY multiple FY + 2 multiple multiple Central Nordic Norway Finland ¹ Weighted averaged of m
Slide 29: Bisnode - risks
Bisnode - risks Managing identified operational risks Risks Changes in regulatory • EU PSI directive extending access to public information environment • Data integrity regulations Governmental contract of • New operational model will lead to price pressure and reduced margins in Swedish Population
Slide 30: Bisnode poised for growth
Bisnode poised for growth 1 Leadership positions across markets 2 Unique value-added data 3 Significant organic growth potential 4 Natural operating leverage driving strong earnings growth 5 Position to lead pan-European consolidation 30
Slide 31: Contact information
Contact information Johan Wall, CEO Fredrik Åkerman, CFO Office: +46 8 558 059 31 Office: +46 8 55805935 Mobile: +46 70 554 18 00 Mobile: +46 70 415 23 65 E-mail: johan.wall@bisnode.com E-mail: fredrik.akerman@bisnode.com 31