Atea Asa · OSL:ATEA
Atea Asa — Investor Day (March 2007)
38 slides from Atea Asa's investor day presentation, Mar 7, 2007
Slide 1: Finland
Finland Dan Högström Managing Director Atea Finland Oy
Slide 2: Number one in Finland
Number one in Finland 260 employees 120 consultants 10 locations, nationwide sales and service organisation Revenue 2006 - NOK 1.5 bn More than 20 years operating in Finland
Slide 3: Financial performance is unacceptable
Financial performance is unacceptable Consulting and service revenue (Pro forma in MNOK) Q4 2006* Consulting and service revenue 25 105 7% Product revenue 440 1 448 Total revenue 465 1 553 Gross contribution 55 217 Product margin (%) 7,8 % 9,4 % Gross margin (%) 11,9 % 14,0 % Operating expenses befo
Slide 4: Fundamental issues
Fundamental issues Year with turbulence – Topnordic aggressively entering Finland with Atea as target High cost base compared to the revenue base Lack of focus on the fast growing mid-market segment Business mix dominated by product sales – No effective e-commerce platform gave ineffective s
Slide 5: Strong reduction in operating expenses
Strong reduction in operating expenses 74 % of operating costs are personnel costs Development of personnel in 2006 450 400 A 19 % reduction in 350 personnel in Q4 300 Annualised cost effect of 250 MNOK 30 in 2007 200 New cost base established 150 100 50 0 Q1 2006 Q2 2006 Q3 2006 Q4 2006
Slide 6: Finland's largest IT infrastructure product player with limited market share
Finland’s largest IT infrastructure product player with limited market share 30 000 26 400 25 000 20 000 18 300 (in MNOK) Atea Finland revenue 15 000 Total estimated market 10 000 8 100 5 000 1 400 1 500 100 0 Hardware/software Services & Total products solutions Market share 2006: 7.4 % 1.3 % 5.5 %
Slide 7: Actions taken to drive profitable growth
Actions taken to drive profitable growth New Go-To-Market Model and strengthened sales organisation – Dedicated teams for large customers, mid-market and small market – New sales management in Turku, Tampere and Oulu – Recruitment of 15 senior sales people during the last year Outbound Customer
Slide 8: Actions taken to drive profitable growth cont.
Actions taken to drive profitable growth cont. Cooperation with complementary business partners Growth plans agreed with major suppliers – Start up Cisco cooperation – Broader cooperation with IBM, HP and Microsoft New solution for mobile devices and associated supply chain Consider selectiv
Slide 9: Our new Go-To-Market model and potential in Finland
Our new Go-To-Market model and potential in Finland Focus on increasing profitability on 192 Customers / Potential 364 current customer base in combination with service sales Large customers Huge potential - resources allocated to 385 Customers / Potential 1 062 increase revenue in mid-market Medium
Slide 10: Summary
Summary Competitive cost structure and processes in place eSHOP implementation in Q1 2007 to support growth in the product business Increase the service share of the business – Evaluate acquisition possibilities – Partnering with other service providers Targeting 4 % EBITDA in 2008
Slide 11: Sweden
Sweden Lars Pettersson Managing Director Atea Sverige AB
Slide 12: Atea Sweden
Atea Sweden 1 060 employees 600 consultants 25 locations Revenue 2006 - NOK 5.5 bn
Slide 13: Consolidation in progress
Consolidation in progress … Martinsson – PC Team – Factum – DataPartner – Amitron – QD – IMS – Lindahl & Rothoff Atea – Owell – WM Data System Platform – Martinsson Topnordic – Nordnet – Office Stockholm Ementor
Slide 14: More than 1 200 customers from very large, large and mid-market business
More than 1 200 customers from very large, large and mid-market business 60 % of revenues
Slide 15: More than 270 customers from public sector
More than 270 customers from public sector 40 % of revenues
Slide 16: Revenue mix
Revenue mix Consulting & Services Software 16 % 23 % Hardware 61 %
Slide 17: Atea makes IT simpler
Atea makes IT simpler Imp r ov e fo cus ! Additional support gives the IT department more time for development of critical operational support User support Operational support IT Dept. Atea Product management Infrastructure
Slide 18: Comprehensive view of IT costs
Comprehensive view of IT costs Product price Costs for ”everything else” The purchase price is only a part of the total cost for IT products
Slide 19: Progress in technology… from helprunners…
Progress in technology… ”from helprunners…”
Slide 20: Progress in technology… …to doctors
Progress in technology… ”…to doctors”
Slide 21: Progress in technology…
Progress in technology... ATER TOPNORDIC® émentor
Slide 22: Comprehensive in IT infrastructure - clear driving forces in all areas
Comprehensive in IT infrastructure - clear driving forces in all areas! Maintenance IT Management Security solutions Client solutions Server and storage solutions Information Management Communications solutions Product supply Home computing License Print
Slide 23: Number one...
Number one... ta) vmware: tfeeedes cisco mcroson @ CITRIX’ inven t ATER TOPNORDIC® émentor
Slide 24: "Ementor knocks Swedish retailers"
“Ementor knocks Swedish retailers” Computer Sweden, dec. – 2006: “Ementor knocks Swedish retailers” “Atea dominates the Swedish market, threatening small retailers to surrender.” Source: Computer Sweden 2006-12-20
Slide 25: Source: IDG 2007-02-28
En sajt i IDG.se-niitverket ONSDAG 28 februari 2007 2007-02-23 15:16 - Computer Sweden Produktférsaljning bort fran Steria Fi: Stefan Bohlin | ComputerSweden Steria lagger ner sin verksamhet for produktforsaljning i Sverige. Narmare 50 personer berors, varav 16 har erbjudits avgangsvederlag. Anledni
Slide 26: Competitive position, hardware
Competitive position, hardware Customer Segment Local Retail
Slide 27: Competitive position, services
Competitive position, services Customer Segment
Slide 28: Market overview Sweden
Market overview Sweden 60 000 50 000 48 100 38 400 40 000 (in MNOK) Atea Sweden revenue 30 000 Total estimated market 20 000 9 700 10 000 4 900 5 500 600 0 Hardware/software Services & Total products solutions Market share 2006: 12.7 % 6.1 % 11.4 % Source: Company estimates
Slide 29: Our business model is scaleable
Our business model is scaleable Shared service center within Finance, HR, IT and Marketing, brings scale into business Atea Logistics … Specialized centers for Microsoft License and Home PC-business Specialized sales force in the most technically advanced areas who can be used by the local o
Slide 30: Activities 2007 to improve profit
Activities 2007 to improve profit Act up on our size ... – Business Committee – qualification Î higher hit rate – ”Best team” – opportunity driven sales with specialists – Business Area Managers – enhanced offerings – Cross selling – share of wallet (growth on existing customer portfolio) – eSHOP!
Slide 31: Accumulated synergy savings related to operating expenses
Accumulated synergy savings related to operating expenses 70,0 60,0 50,0 in MNOK 40,0 30,0 20,0 10,0 0,0 Q1-07 Q2-07 Q3-07 Q4-07 2008
Slide 32: Summary
Summary Leading position in the Swedish market – Number one in almost every area within IT Infrastructure Local presence all over the country Atea Logistics – a unique selling point Strong potential to improve profit Fragmented market environment
Slide 33: Summary
Summary Ib Kunøe Chairman of the Board of Directors of Ementor ASA
Slide 34: Focus
Focus Ementor shall be the leading, largest and most profitable company within IT infrastructure in the Nordic region Ementor shall be the highest certified IT infrastructure supplier on all market leading technologies Ementor shall have sufficient volume to get the best purchase prices in the
Slide 35: Values
Values We hesitate to take marketing costs that are not covered or has a very short payback horizon We have a minimum of support staff and “non-billable” We keep a flat organizational structure with emphasis on delegation We spend our energy on customers and markets and try to avoid complica
Slide 36: Market Drivers
Market Drivers We see three main drivers in the current market The constant search for operational efficiency The struggle to improve external and internal loyalty The creation of a business platform, that supports change
Slide 37: Group priorities going forward
Group priorities going forward 1. Profitability – Execution of cost synergy program 2. Growth – Organic growth in the Nordic region – Continued Nordic consolidation – Geographic expansion outside the Nordic region 3. Continued execution discipline
Slide 38: Questions
Questions Sjur S. Malm, Financial Analyst, Enskilda Securities Arild Nysæther, AFA Financial Analyst, Fondsfinans