digitization › wp-content › uploads › 2018 › ... · retail • individualnew products •...

DIGITIZATION

”A market report on digitization with focus on Swedish equities aligned for future growth”

ANALYSTS: Emil Erbing & Johan Cisneros 2018-03-28

MARKET RESEARCH REPORT

TABLE OF CONTENTS

2

CONTENTS

Digitization 3

IT-consulting 5

Investment case: KnowIT 8

E-Health market expands 9

M-Health trends 12

Investment case: Doro 14

Summary 16

Disclaimer 21

DIGITIZATIONDigitization is the process of converting analog informationinto digital information. In essence, this trend is forcingorganizations and businesses to restructure their businessmodel in order to accommodate for a demanding consumerbase. Digitization will impact virtually every market that existstoday and it will spawn several new ones in the years to come.Digitization is a massive change, even greater than the internet.Exponential technology advances, greater consumer power andincreased competition mean all industries face the threat ofcommoditization. The winners will act now, and build astrategic advantage that leaves their counterparts wonderingwhat happened.

This report will attempt to answer questions surroundingdigitization and will discuss the role of IT-consulting andGeneration Y. It will also delve deeper into E-health and itspotential on the Swedish market.

NOW SOON NEARER FUTURE DISTANT FUTURE

Mass market adoption

Rel

evan

ce o

f Sw

edis

h co

mpa

nies

Gaming

FinTech

Cybersecurity

Internet of Things

AdTech

Sharing Economy

Gambling & Betting

Digital Health & Wellness

Enterprise Cloud/SaaS

Edge Computing

5G

ARVR

AI

Commercial Drones

Blockchain

Virtual Assistants

Smart Robots

Connected Home

Human Augmentation

Autonomous Vehicles

Swedish Technology Outlook

4D Printing

Quantum Computing

Source: McKinsey, Redeye, LINC R&A Research

IT-services

DIGITIZATION

3

The challengeThere is no way of measuring the exact impact digitization will have on any singular entity, yet companies andorganizations are actively choosing to disrupt their current business structure in hopes of reaping future gains. Itis a natural progression as technology change accelerates exponentially coupled with an increasingly selectiveconsumer demographic. The importance of digitization isn’t solely the potential profits one might earn, but justas important the impact it will have on society in general. The world’s top 10 economies are expected to, fromthe use of digital technologies, add 1.36 trillion dollars to their GDP combined in 2020.1

The biggest challenge society faces going forward is the inherent resistance to change people’s and companies’generally posess coupled with a tendency to choose the more risk averse option available. Reluctance towardschange is justified in regards to digitization, especially when more than two thirds of companies are expected tofail in their endeavors to digitize. Companies are heavily punished by the market if they incorrectly digitize theirbusiness, as 400 billion dollars a year are projected to be wasted on failed attempts by large companies todigitally transform their business structure.2 The fact that only 8% of companies believe their current businessmodel will remain viable through digitization, foreshadows the drastic change that will transpire.3

Everything, including changes to supply chain, management, R&D, marketing and more can be digitized insome form or another. Naturally, the processes that have a direct impact on a company’s ability to generaterevenue and minimizing costs will be the ones to be digitized first, but it isn’t always clear which process that is.Would you rather invest in an expensive new customer interface for your website that will improve thelikelihood of customers returning to your website or spend money to bolster your digital library of products?Questions of this nature can be difficult to answer, which is why management consulting and specifically IT-consulting has become a common alternative for companies to turn to, when in need of digitizing their business.

Illustrated below are conservative estimates illustrated by a real-life case study for the utilities sector on theimpact that digitizing different processes have on operating earnings (EBIT). The estimates show thatgeneration and retail are areas where digitization will have the largest potential for improvement. However, it isimportant to note that improvement areas will be different in other markets.

Smaller innovative technology businesses have a large tendency of being acquired by multinational techcorporations. For instance, we have seen the acquisition of YouTube coming to have operational synergies withoperations for Google. Hence, within today’s winner takes it all economy, these multinational corporationscome to acquire smaller innovative corporations with unique ideas. This happens as well within the IT sectorand IT consulting.

LINC – Lund University Finance Society | Please take note of our disclaimer at the end of our report

Source: McKinsey

6.62.5

4.3

1.3

23.28.5

Trading• Improved

decision making• Better overall

energy balance

Distribution• Fewer losses• Preventative

maintenance• Workforce

productivity

Retail• Individual new

products• Better prices and

customersegmentation

• Digital operations

Group HQ• Optimized operations

and management through enterpriseresource planning

Improvement Areas, Case Study, EBIT %

Generation• Optimized plant

maintenance• Spare-parts

management• Fuel management

Total Impact

2

2,4

2,6

2,7

2,8

2,8

3,2

3,9

0 1 2 3 4 5

Industry 4.0

Business Intelligence and big …

Data center and security

Smart connectivity

Mobile and apps

Cloud and SaaS

Fintech

Gaming

Tech M&A Average EV/sales multiple, 2013-2016 (x)

16152283

202

266

41

72

56

91

0

1000

2000

3000

2012 2013 2014 2015 2016

Tech M&A transactions, Number of deals

<$100 million $100 million to <$500 million$500 million to <$1 billion >$1 billion

DIGITIZATION

4

Digitization will also generate its fair share of losers. Blackberry failed to adjust to changing consumer demands.The company was a leading phone producer during the mid-to late 2000’s and commanded a 20.1% marketshare of the global smartphone market at its peak.4 Apple released the first version of iPhone on June 11, 2007,which fundamentally changed the whole market and a phone with a keyboard was no longer seen as the future.Blackberry thought their brand was too heavily associated with this kind of design and opted out of creating atouchscreen phone at first. They eventually decided to develop and launch one, but by that time Apple phoneshad gotten too big of a lead in the market for them to come back.

What does the future hold?You have likely come across terms like e-commerce, fintech and IoT the past years. These markets were allcreated through digitization. You have likely dropped cable in favor of watching your favorite TV-shows onNetflix and HBO, and you probably use an app to check how your stocks performs. These may seem like logicaloutcomes in hindsight, but how many could have predicted the rise of blockchain technology 10 years ago?Bitcoin currently has a market capitalization of 142 billion dollars (less than half of ATH).5 These are massivemarkets that are created out of nothing. The near future will see the implementation of 5G, a market withprojected revenues of 1.3 trillion dollars by 2025. It is expected to make up 12% of total mobile connectionsworldwide.6

A market that is currently undergoing heavy changes is the market for digitized healthcare, also known aseHealth. The global market is projected to reach 244 billion USD by 2021 with a CAGR of 14.56%.7 Themarket is experiencing such rapid growth as patients requires improved insights in their health, companies arerealizing the potential earnings of remote treatment and mostly all services related to healthcare. Theintroduction of wearable technology, such as digital watches and smart glasses that can monitor vital signs, andcan further boost this trend as well as the general demand for a restructuring of the traditional healthcarestructure.

A threat relevant for digitization is the commoditization as consumers are unable to distinguish products andtreat them as interchangeable. This makes qualities such as brand, quality and design less important as pricebecomes the key factor to the consumer. The effect has been highlighted and intensified with technology. Anindustry that has seen heavy commoditization is the music industry, where one can stream virtually any songfrom artists all over the world, making their individual content less important. This favors companies andmarkets that deal with heavily specialized products and services that aren’t subject to the same risk ofcommoditization.

Sweden forefront in the digitized ageThe European Union annually publishes the European Digital Progress Report, which tracks the progress madeby Member States in terms of their digitization, combining quantitative evidence from the Digital Economy andSociety Index (DESI) with qualitative information on country-specific policies. The report is structured aroundconnectivity, human capital, use of internet, integration of digital technology and digital public services.According to the report, the Nordics is currently the most digitized region, with Norway in the lead 2017.Sweden is effectively using internet compared to other member states, with nationwide 4G coverage. Swedenbeats all components in the index compared to other member states. However, the digital public services are nothigh compared to other figures and can be improved compared to the digitized potential Sweden has.


0,2

0,3

0,4

0,5

0,6

0,7

DESI 2014 DESI 2015 DESI 2016 DESI 2017

Sweden EUSource: European Digital Progress Report

0,2

0,3

0,4

0,5

0,6

0,7

DESI Connectivity Human Capital Use of Internet Integration of Digital

Technology

Digital Public Services

Sweden EU

IT-consulting has widely impacted management consulting and the continuous improvements in technology willlikely keep it that way. The demand for management consulting arose when companies realized they did notpossess the technical expertise to restructure their business by themselves. As it is such a crucial transition, mostcompanies are not willing to risk failing and therefore bring in outside specialists. A few companies that have thenecessary resources even build up their own internal management consulting division. The demand for theirservices are requested across all sectors and the market is projected at 296 billion USD in 2020 with IT-consulting making up 53 billion dollars.8

Swedish actors are well positioned as the degree of digitization can be measured with data measurements, suchas smartphone penetration and NRI (Network readiness index), both of which place Sweden in top 3 globally.9Furthermore, the IT-consulting market is vulnerable to cyclical fluctuations in the market due to its heavyexposure of revenue coming from the industry sector. The impact varies depending on the individualcompany's’ portion of revenue stemming from a cyclical sector. Similarly, we have seen greater problems forconsultants in the Telecom, IT and Media sector as Acando have struggled most.

As illustrated in the graph above, the consulting market is expanding, and spending on IT-services is estimatedto grow 10% to 2019E. Locally, higher IT-services spending from the Swedish government, enhances the strongposition actors have. With trends today of larger spending of digitized solutions within the public sector andgovernment agencies, comes attractive positions for most of the IT-consultants. Similarly, with last years’increasing regulations and further digitized solutions within the banking sector comes also high demand formanagement- and IT-consultants. The services for consultants operating with these customers have seen agreater amount of their revenue coming from these sectors.

As banking and public sector customers are demanding further digitized solutions, consultants B3ITManagement, KnowIT and Acando are well positioned and have great exposure compared to other presentedpeers later on page 7. Additionally, service qualities have previously been proven with high customersatisfaction, which strengthens these consultants’ offerings towards these sectors.

IT-CONSULTING

5LINC – Lund University Finance Society | Please take note of our disclaimer at the end of our report

26 27 27 28 29 31 32 33 34 3556 59 61 64 67 71 75 78 82 8625 26 27 28 30 31 32 34 36 3755 58 61 64 67 70 74 77 81 8543 44 45 46 47 48 49 50 52 53

0

50

100

150

200

250

300

2011 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020EBillion USD

Size of global consulting market worldwide

TechnologyFinancial AdvisoryHuman ResourcesOperationsStrategy

Source: Statista

0% 5%

10% 15% 20% 25% 30%

2015 2016 2017

Revenue from customer segments

Government Agencies Banking, finance and insuranceSource: Hiq, B3IT Management, KnowIT, Acando

4 000

8 000

12 000

16 000

2013 2014 2015 2016 2017

MSE

K

Spending on IT and Software

Handelsbanken Swedbank SEB Danske Bank NordeaSource: Annual Reports

Handelsbanken have shown increased investments in software and internal IT systems, which gives KnowIT anattractive position in the market and has created further sales volume from the area. Additionally,Handelsbanken particularly faces digital challenges with IT systems, IT solutions and business consultancy,resulting in improved chances for KnowIT to receive further projects in coming years.

More specifically, IT-consulting in the future will rely on more specialized knowledge with the release of morecomplex technology that can boost a company’s performance. Much like Generation Y, IT has great importancein digitization. It acts as a driver to markets that need assistance adjusting towards a more mature digitalorganization. As spending will increase on IT-related services, so will also the demand for IT-consultingservices. Digitization serves as an underlying trend that boosts the market, which makes markets with high levelsof digitization attractive.

The current market is heavily fragmented and new competitors are constantly entering. The real entry barrier inthe industry is human capital, with relevant expertise. The most common problem associated with largeconsulting firms related to growth, which is especially true for IT-consulting firms, is the difficulty that results asthe pace of growth tends to move faster than the company’s ability to recruit and train consultants. However,smaller consulting firms tend to not experience this problem to the same extent. Similar to tech corporationswith unique customer solutions, larger consultants acquire smaller skillful consultants. In fact, KnowIT andAcando have expressed strategies of acquiring competence through acquisitions, especially to enter newgeographical markets. This has recently been shown from Acando’s acquisition of Anywhere.24 GmbH inGermany.

21%

3%7%

6%28%

11%

16%

8%

B3IT

IT-CONSULTING


5%13%

14%0%

14%36%

1%12%

5%

KnowIT

4%12%

19%

27%

20%

4%14%

AcandoEnergy

Banking,financeandinsuranceRetail

Vehicles

Defence

Industry

GovernmentAgenciesHealthcare

Telecom,ITandMediaSource: B3IT Management, KnowIT, Acando

HighLow

High

LowVertical: Banking and Public Sector as % of RevenueHorizontal: Customer spendings (IT & Software)

Market positioning

Name Market Capitalization (MSEK)

Sales Growth LTM

Est. EV/EBITDA

NTM

Revenue from Banking (%)

Revenue fromPublic Sector

(%)

Sales/employee (MSEK)*

EBIT/employee (TSEK)*

HIQ 3,781.9 1% 12.8 15% 19% 1.1 130.3

KnowIT 3,035.5 38% 8.4 13% 36% 15 133.7

Acando 2,949.3 -1% 9.2 12% 20% 1.3 125.6

AddNodeGroup 2,469.9 15% 7.2 N/A N/A 1.6 86.0

BTS Group 1,771.6 14% 8.2 N/A N/A 2.1 75.9

Enea 1,465.9 3% 8.4 N/A N/A 1.3 292.4

Semcon 892.9 7% 6.7 0% 0% 2.3 122.6

B3IT 611.6 27% 9.8 21% 28% 1.3 74.6

Prevas 177.8 5% N/A 0% 0% 1.4 30.1

IT-CONSULTING

7

In the Swedish market there are several interesting IT-consulting firms that show promise of great potential forcreating shareholder value in the long term. However, there are consultants that stand out with their uniquecompetences. Acando have illustrated a great competence in a variety of sectors, but suffered with services inTelecom, IT and Media. With the retail sector to undergo further digitation, Acando is again well positionedcompared to other consultants. On the other side, Semcon niches its exposure towards the vehicle and industrysector. However, KnowIT and Acando are standing out with increased quality competence from talents.KnowIT with their awards, and Acando with their attractive talent program. Additionally, reasons why a varietyof services underlies within operational risks and IT competence in general. As Semcon and Prevas is notexposed to overhead market trends, their market positioning and large exposure to markets as vehicles, energyand industry becomes unfavorable.

To conclude, Semcon and Prevas market positioning is not as favourable as other consultants. The market hasadditionally understood the fact, as the valuation of Semcon with next twelve months EBITDA amounting tothe lowest in the sector as well as consultants with a variety of customers having trades at higher multiples (HIQ,Acando, B3IT and KnowIT). With high exposure to sectors with a favorable outlook, as banking and the publicsector, impressive growth and increased bets on high recruiting, KnowIT have been evaluated further on page 8.Additionally, with relatively high sales/employee strengthens their competitiveness. Underneath, relevant actorswith well positioning for future market are presented, based on sector exposure, offerings aligned with markettrends and unique competences.


Source: Bloomberg, Börsdata, Year-end Reports*For smaller companies values are misleading

Energy Banking, financeand insurance Retail Vehicles Defence Industry Government

Agencies Healthcare Telecom, IT and Media Others

HiQ 0% 15% 6% 15% 4% 19% 19% 0% 22% 0%

Acando 4% 12% 19% 0% 0% 27% 20% 4% 14% 0%

Semcon 7% 0% 0% 47% 0% 28% 0% 7% 7% 4%

KnowIT 5% 13% 14% 0% 0% 14% 36% 1% 12% 5%

B3IT 0 21% 3% 7% 0% 6% 28% 11% 16% 8%

Prevas 11% 0% 0% 8% 7% 25% 0% 19% 8% 22%

Source: Year-end Reports

0

5

10

15

20

25

30

35

40

0% 20% 40% 60%

NTM EV/EBITDA

NTM EBITDA Growth

KnowITPeers arepresented in Appendix

KNOWIT


KnowIT AB (“KnowIT or ”The company”) is an IT-consulting firm that creates unique customer value in aworld of accelerating digitization. The company operates inthe Nordics and Germany and offers solutions in threedivisions: Experience (22%), Insight (12%) and Solutions(66% of Net Sales).

Business model aligned with market trends. Withdigitization increasing its impacts in the Nordics, andbecoming a requirement of digitized operational systems,KnowIT’s web-, system- and management consultancyoperations provides lucrative comprehensive solutions andcreates further income streams to the company.

With great expansion comes larger integration risks, inwhich can flatten productivity and income stream perconsultant. However, with higher demands of digitizedservices and business models in combination withcustomers’ expressed need and requirement for furtherdigitized solutions, KnowIT is estimated to achieve netsales per consultant of 1.56 MSEK in 2019E, compared to1.45 MSEK in 2017. A growth of 8.3%, customers areexpressed to come from different industries, where someare H&M, Handelsbanken, Nordea, Volvo Cars andvarious government agencies from the public sector. With33% of sales coming from the public sector and furtherspending from the government regarding development anddigitization, demands for KnowIT's solutions increases andstrengthens project sizes.

Aggressive recruitment strategy bodes well for futuregrowth. KnowIT has been ranked as the best IT-consultancy firm to work for by the employer branding-company Universum. Hence, it is expected to attract andrecruit the most talented young professionals, which inturn, enables the company to increase sales from respectiveemployee and decrease its OPEX per consultant. Thisallows EBITDA margins to improve to 14.52% for 2019Ecompared to 2017’s 10.74%. A higher profit margindecreases Net Debt/EBITDA to low 0’s and hence createsopportunities for further acquisitions. Judged by companytargets (Net Debt less than EBITA), an acquisition ofapproximately 550 MSEK is in reach.

In a base case scenario KnowIT is projected to maintainits focus on a high net recruitment of consultants, althoughthe increasing levels will flatten, which results in a net gainof 196 employees at 2019E. No acquisition will be realizedin this scenario. KnowIT will still experience sales growthto 2,995.3 MSEK and 3,111.7 MSEK 2018E and 2019Erespectively (9.6% and 3.9% increase). A high recruitmentrate leads to improved margins as an increase in lowerearning consultants will decrease the OPEX/per consultantwith a projected 12.75% EBITDA- margin and EBITDAof 396.8 MSEK 2019E.

A bull case scenario revolves around an acquisition of300 MSEK at the same multiples as the company Requirethat KnowIT bought during Q4 2017 for 16.2 MSEK. Thisacquisition enables further sales growth to 3,345.6 MSEK2018E, 22.4% YoY, as well as decreasing its OPEX/per employee costs to 1.04 MSEK compared to a NetSales per employee at 1.12 MSEK. An advisory cost of 10MSEK is expected to burden KnowIT during 2018, whichstems from the acquisition during the year. Solutions,Experience and Insight are all performing well, largely dueto continued strong growth on the Norwegian front, aswell as the company continuing to grab market shares inSweden and Finland.

Bear scenario estimates KnowIT to experience difficultieswith maintaining high levels of recruiting. Its net salesgrowth will be hampered by a decreasing influx ofconsultants to 3,008.4 MSEK, which is a 3% increase insales 2019E. The company will experience a higher OPEXper consultant at 1.36 MSEK due to less demand from thepublic sector for IT-consulting services, which especiallyhinders KnowIT’s ability to stay profitable.

A regression analysis has been made illustrating givenpeers, their EV/EBITDA multiples as well as estimatedEBITDA growth for 2018E and 2019E. With those inmind, respective target multiple is motivated and givesKnowIT a target multiple of 10.5x EV/EBITDA in basecase. This indicates an upside of 12.4% and 28.0% in2018E and 2019E, respectively, relative to KnowIT’scurrent valuation.

200

300

400

500

600

700

1,1

1,2

1,3

1,4

1,5

1,6

2016A 2017A 2018E 2019EEBITDA Net Sales/employee OPEX/employee

MSEK

Source: Bloomberg

The digitization includes an information digitization, the process in which analog information transfers to digitalformats, and community digitization. This includes a greater societal process where different forms of ITsupport is increasingly integrated in organizations and effects their bases. Through information digitization’stechnology, solutions and developments e-health is estimated to expand to its potential. E-health is the ability toseek, find, understand, and appraise health information from electronic sources and apply knowledge gained toaddress or solve health problems. Following aid providing services and areas make up e-health and will bediscussed throughout the report:

Acquisitions of eHealth has expanded lately, and multiples have grown lately. US EV/EBITDAs have increasedfrom 8.1x in 2010 to 10.9x in 2017. Development is illustrated in the appendix. Patient Engagement solutionsand data analytics have highly funded acquisitions as the amount of deals increased due to improved demand ofdata awareness, and cyber security regarding one’s personal health.

Global and European eHealth market estimates to accelerateLarger expenses within the health sector, in relation to countries’ GDP is heavily expanding. Higher demandsfrom patients being more safe, increasing control of their health and easier execution of treatment, drives themarket to enhance more digital solutions to the healthcare sector. Most importantly, the digital solutionscontribute to improve the digital healthcare system in ways that streamline, increase availability and enhancesmedical quality for patients, doctors and nurses. Global eHealth market hence estimates to expand to USD 244billion by 2021, and a CAGR of 14.6% during this period forward.10 Almost all countries within EES and EUvisions strong improvements in respective countries’ health sector through digitalization and eHealth. In fact,EU outlines and refer countries in investing more in eHealth and digitized solutions to healthcare. As aconsequence EU countries outline their own aggressive strategies in reaching new healthcare systems. These arenot just the regular strategies countries’ do in regards to megatrends but more detailed, nuanced and wellthought out. Reasons behind new incentives, investments and projects from governments and EU is primarilyexpanding governmental expenses relative to GDP figures, and in ineffective allocation of invested capital inhealth sectors. In Sweden alone, total savings will amount to 180 billion SEK 2025.11 This is equivalent tosavings of 25% relative to not developing and executing eHealth and its consequences.

eHealth expansion requires developed digital infrastructure and familiarityNot all countries possesses the digital infrastructure required for the change and revolution within the healthsector. This is essential for the execution, awareness and social tolerances for a change in the healthcare system.The eHealth revolution is not just based on digital abilities of potential patients, but rather of trust, familiarityand perceived safety, using the systems. As previously mentioned, Swedish inhabitants possesses these qualitiesand characteristics. Illustrated on page 10, a representation of the smartphone penetration from respectivecountry in EES. This illustrates even further the strength of how digitized Sweden can create an effective digitalrevolution within the health sector. The countries with highest smartphone penetration tend to developincreased familiarity, trust and connectivity to systems. Additionally, countries with high smartphone penetrationand DESI values are to be the leading countries within eHealth based, i.e. ePrescribing.

E-HEALTH MARKET EXPANDS


Electronic health record

Health knowledge management

Computerized physician order

entryePrescribing Clinical decision

support system Telemedicine

Consumer health informatics

Virtual healthcare teams mHealth Medical research using

gridsHealthcare information

systems

9

0

200

400

600

800

Data Analytics mHealth Apps Patient Engagement

Telemedicine Appointment Booking

Clinical Decision Support

Mobile Wireless

Top Funded Digital Health Categories in 2017 (US$ in Millions)

E-HEALTH IN SWEDEN

In April 2017 SKL, Swedish Association of Local Authorities and Regions, announced their vision of being theforefront country in the world using digitization’s and eHealth’s opportunities in purpose to facilitate for peopleto achieve a good health and welfare. This vision is primarily driven to create improved health, higherinvolvement and autonomy. Higher patient involvement and control will be reached through individual suiteddigital support and simplified communication paths. With Generation Y taking up a larger part of society,governmental officials in Sweden requires heavy inputs and insights in the area in order to optimize systems forpatients and care staff. With systems more integrated with the coming generations, systems can be modernizeddriving even further digitization trends to be aligned with and integrated in the healthcare.

Swedish actors develops wide eHealth solutionsWith eHealth and its digitized characteristics, almost all systems and solutions are considered as healthcareinformation systems, since all use information processing and sharing from electronic sources. Hence, theopportunities for Swedish actors are large. Telia combines their services today and enables personnel allocationtrough mobile devices, as well as creates open platforms for the patient to share their condition with doctors inorder to be consulted from distance, and track their health conditions. Similarly, Doro develops through DoroCare telecare solutions and accessory sensors, with versatile alarm triggers and data tracking. Doro’s productsare focused towards elders and therefore, simple handled systems are integrated to the systems. On page 11 and12 a deeper analysis is illustrated with other Swedish actors, their implementation barriers and market outlook.

The eHealth market in Sweden today is however very fragmented. Critics argue that the integration of theeHealth solutions needs to improve in order for it to succeed in healthcare. This is a consequence of thefragmented market, where several solutions are running at systems required for uniformity. Solutions for theseproblems are consolidation of systems, where one larger actor delivers platforms for several devices to provideeffective sharing, analysis and data storage. Larger actors like Capio and Aleris is a perfect example in whichintegrates and develops their own systems in order to reach better healthcare services for patients. Additionally,what needs to be considered for successful eHealth projects to become successful is relevant for stakeholderengagement and willingness to invest the amounts of capital required.


“Year 2025, Sweden should be the best country in the world using digitization’s and eHealth’s opportunities in purpose to facilitate for people to achieve a good and equal health and welfare,

and also develop and strengthen own resources for expanding independency and participation in community life.”

- Swedish Association of Local Authorities and Regions

Rank Country Smartphone Penetration

Smartphone users (millions)

1 Denmark 77.3% 4,442 Norway 75.6% 4,033 Sweden 73.7% 7,344 Iceland 72.3% 3,465 Switzerland 71.7% 6,116 Ireland 71.7% 3,437 Germany 68.8% 56,578 Netherlands 68.8% 11,749 United Kingdom 68.6% 45,5710 Belgium 67.3% 7,7211 Spain 66.8% 30,9812 Italy 65.8% 39,0313 France 65.3% 42,5314 Finland 65.0% 3,6015 Portugal 65.0% 6,7016 Austria 64.9% 5,6815 Czech Republic 64.8% 6,8816 Poland 63.4% 24,1717 Croatia 60.4% 2,5218 Greece 59.5% 6,6319 Estonia 56.7% 0,7420 Slovenia 56.3% 1,17

High Low

Smartphone Penetration in Europe

Source: Statista

10

E-HEALTH IN SWEDENWithin the Swedish healthcare system different sustainable cost developments, quality improvements andincreased availability can be made within a great amount of services. These services have been evaluated inregards to their economic potential and their implementation barriers. Implementation barriers are set based ona combination of costs for digitization’s impact on segments and the amount of change necessary to implementit. Distance consultations, internet booking of doctor visits, and self-diagnosis and counseling are three areas inwhich digital infrastructure could easily be implemented by healthcare providers. However, several segmentsneeds to digitized in symbiosis with others. For instance, systems for self-diagnosis and counseling needs to havea possibility in consulting doctors or other healthcare staff at a distance.12 Another example, Apple launched anintegrated system for mHealth and sensor techniques with Apple Watch and Apple Health application. Similarly,within the scatter chart, mobile tools for home care are presented, and should be considered as one of the firsteHealth service that can come to healthcare today. High smartphone penetration within Sweden indicatesSwedish patients are ready with well technical knowledge for application systems and increase comfortability ofusing similar systems for health and healthcare purposes. Additionally, with innovations like Apple Watchsystems, software systems can be integrated for improved health and healthcare purposes.

Due to the lack of qualitative figures provided and quantification, this estimation should be carefully evaluatedand can shift in a small extent. A further analysis of Swedish actors and their subsequent role is illustrated onpages 12 and 13.

Healthcare staff have an willingness for the Swedish healthcare system to get more influences from digitizationand what eHealth can contribute with. The sentiment from healthcare staff indicates an openness andwillingness to digitize the Swedish healthcare system. 9 out 10 doctors and nurses in the primary healthcarebelieves some care visits can take place at a distance.12 Additionally healthcare staff agrees that well informedand engaged patients can take a larger responsibility for one’s own health and well-being. However, healthcarestaff is separated how digital tools and services can improve resource allocation, i.e. allocate more time to moresevered injured patients. The difference is not indicated in respective area within healthcare. Nurses are morepositive to a improve effectiveness of personnel allocation. Hence, nurses believes easier treatments andcheckups can be executed more effectively with eHealth’s solutions and thereby provide effective time usage forextensive healthcare situations.

Global mHealth- grows faster than global eHealth marketAs earlier mentioned, one of the more prominent services than can be executed within the nearer future is themobile exposure to the healthcare sector. The prominent segment within the eHealth market, is estimated topurport about 24.0% of the eHealth market in 2022. mHealth is estimated to a substantial growth with CAGRof 27.0% from 2017 to 2022, estimating a market size of 58,6 billion USD.13 This growth figure is hence 12.4%higher than eHealth’s estimated growth. This lucrative growth attributes to the rapid smartphone penetration inthe world, in combination with increasing consumption and demand for data services. Additionally, mHealthpatents have multi-folded in recent year indicating in large investments and visions within the distributors.

LINC – Lund University Finance Society | Please take note of our disclaimer at the end of our report 11

0

5

10

15

20

25

30

35

40

Small Medium Large

Low costs

Medium costs

High costsClinical decision support

Integrated journal systems

Distance surveillance with sensor technique

Economic Potential

BSEK

Uniformity in healthcare

Preventive public health work

Digital self-careRemote monitoring of intensive care

Optimization of patient flows

Personnel allocation

Distance consultations

Monitoring of medication

Internet bookingMobile tools for home care

Self-diagnosis and counseling

Implementation barriers Source: McKinsey

Digitization's economic potential in relation to ease of realization

M-HEALTH TRENDSOver 44 million mHealth applications were downloaded between 2000 and 2015 in North America alone. Thisis however illustrating a largely fragmented market, especially with low downloads per app figures. In 2017global downloads estimates to land around 3.7 billion outlining a growth of 23.3% since 2015. 13 However, thereare apps with high popularity where the functionality and purposes of the application are clear. Apple launchedan mHealth application with simplified data storage and analysis of your health. These particular applications areharder to create customer satisfaction and monthly active users. However, Swedish app KRY is a great exampleof how mHealth can be implemented with doctor consultation at a distance instead. Here you log in through anidentification service and get consulted by a doctor in an instant. These consultations can thereby give referralsand prescribing more effectively, which is more dynamic for lifestyles and time effectiveness for both patientsand doctors.

Today's Swedish doctors are willing to recommend applications and mHealth solutions to patients in a variety ofhealthcare services. In general, 81% of all doctors can recommend an application for suitable uses in the nearfuture.12 This enhances and stresses the relevance, importance and potential solutions these applications willhave. With a high legitimacy for patients coming from doctors, this creates and drives eHealth market toanother phase, in which a fragmented market can become more consolidated with higher accuracy, functionlevels and utilization improve.

Swedish actor’s positioning for the futureTelecommunication and mHealth is mostly integrated and have similar outlook. This quantifies and illustratesopportunities corporations like Telia, Doro, Apple and initiatives like KRY will expect. Reasons why mHealthapplications like KRY are led by governments, is related to effective personnel allocation and distribution, withoperational cost synergies with national hospitals. This however, illustrates and gives Capio opportunities toimprove mHealth solutions in collaboration with their hospitals.

On page 13, Swedish eHealth actors are presented in relation with their economic potential in respectiverelevant eHealth market as well as the difficulties in order to entry the market and execute projects. As illustratedCapio have large opportunities within the eHealth market and the initiatives that is estimated to be taken. Capiois however, acting in most areas in which changes is about to appear. However, what needs to be observed andconcluded is market potentials of Telia, Getinge and Doro. Telia have the ability, as Doro, to expand andincrease exposure to mHealth. Additionally, Doro contribute with sensor components to improve distancesurveillance within health and healthcare, where Telia provide software services. On the other hand, Getinge canadditionally develop more effective healthcare systems and integrate these in order to create further uniformityin healthcare.

Actors presented in the figure on page 13, have been included to identify of the possibility to entry or haveentered the eHealth market. However, reasons for other corporations not being included are not regarded fortheir quality, competence or similar characteristics of that particular corporation.


3%

9%

10%

1%

2%

6%

79%

79%

79%

72%

73%

71%

17%

12%

11%

27%

25%

23%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Control of chronic disease

Follow up on/instructions for work out

Healthy diet and weight loss

Monitoring of vital parameters

Sleep monitoring

Cognitive behavioral therapy

Recommendation Of App Today And In Near Future To Patients

I recommend today I can imagine to recommend I cannot imagine to recommend

12

Source: Pwc

As the figure depicts, Doro and Getinge have advantageous market potential positions relative toimplementation barriers. Due to estimated cost effectivity for distance surveillance with sensor technique, costsrelative to market potential reinforces Doro’s positioning for eHealth and mHealth trends.

0

20

40

60

80

100

120

140

Small Medium Large

Market Outlook For Swedish Actors

Market potential

BSEK

Implementation barriers

FUTURE MARKET OPPORTUNITIES


Ticker Name Market Capitalization (MSEK)

Sales Growth LTM

Est. EV/EBITDA NTM

Exposure to eHealth today*

Costs/Market potential

TELIA SS Telia 156,142.9 -11% 8.91 1 15.38%

GETIB SS Getinge 27,386.8 12% 8.39 3 12.33%

EKTAB SS Elekta 26,888.1 -12% 9.55 3 16.30%

SECTB SS Sectra 6,541.3 13% 22.2 3 16.67%

CAPIO SS Capio 6,232.2 -8% 8.15 4 14.07%

CEVI SS Cellavision 3,506.2 17% 27.04 3 16.49%

DORO SS Doro 799.4 -36% -0.7% 4 9.16%

DEDI SS Dedicare 668.3 20% 8.00 2 14.81%

ALLGB SS Allgon 182.4 109% 13.2 2 15.23%

ORTI SS Ortivus 77.2 -21% N/A 4 20.83%

AINO SS Aino Health 28.6 248% N/A 3 13.22%

Source: Bloomberg, Börsdata, Year-end Reports*1 – Low, 5 – High.

Source: McKinsey, LINC R&A Research

DORO


Doro AB (”Doro” or “The Company”) operates withintelecommunication, telecare and mHealth for seniors. TheCompany’s segments are: Phone, which develops Feature-och Smartphones (86 % of net sales), and Doro Care,which offers security solutions for elderly and disabled (14% of net sales).

Doro refocuses the business model for subduedoperational risks. mHealth and telecare comprisehealthcare methods using mobile and telecommunicationmeans. Doro reshaped their operating focus by replacingpositions in senior management, and increased focus withinthe segments Doro Care and Smartphone, to take part ofthe increasing markets of mHealth and Smartphone. Thesub segment Feature phones is known for shorter productcycles, high competition and R&D heavy operations.Because of this high competition in the market, estimatesthe sales from the segment to 1.34 BSEK for 2019E, whichis 1 MSEK higher than the sales 2017. However, theSmartphone segment estimates to a sales growth of 15.7 %from 2017 to 2019E. Doro Care possesses a favorableposition within mHealth, and can create high entry barriersin the market with successful product launches.

Digitization and the business model. With a uniquemarket position and market leader for senior telephonesand care solutions, Doro takes an attractive position inbranding and awareness for customers. However, withimproved digital societies in Europe, comes improveddigital awareness for elders, increased connectivity andintegration of digital technology in the day-to-day life.Hence, segment Feature phones, consisting of simplehandled phones, creates an offering not aligned with digitaltrends in the world. However, the refocus towardsSmartphones aligns better with digitalization trends and canprovide the primary Smartphone solutions for elders aswith the customer segmentation of easy handled telephonealternatives.

Doro’s operational leverage underlies withinPhonesegment. The segment Phones contribution to netsales is critical for the company’s business model. ThePhonesegment holds underlying operational costs andR&D costs who acts as constant. This means that increasesin net sales affects the Company’s EBITDA-marginspositively, and creates an operational leverage. On theother hand, is the Company’s gross margin affected byDoro Care’s net sales. This illustrates the variable costs inDoro Care that creates attractive margins for a greateroperational focus towards Doro Care. With higher parts of

sales generated from Doro Care, the operational leverageflattens, but still generates strong EBITDA-margins.Today, Doro Care only contribute 14 % of net sales, andthe EBITDA-margins are not affected in an obvious wayof Doro Care’s sales. The company’s operational leverageillustrates in the graph underneath by respective quarter’snet sales and EBITDA-margin.

Phone segment starts to excel in Q3 2018. The demandfor the feature phones has flattened in geographical areasUnited Kingdom and the Nordics, which will have negativeimpacts in coming quarters on Net Sales and EBITDAwise. Other geographical areas such as Europe, Asia andNorth America is expected to keep growing within theFeature segment, especially in combination with theFeature Phone launches that will be made in the secondhalf of 2018. Additionally, with segment Smartphones,Doro provides solutions for more digitized seniors and haslaunched new Smartphone Doro 8040, which estimates toelevate Net Sales even further. Smartphones estimates toan increase of net sales of 15% from 2017 to 2019E.Hence, this leads to Smartphone sales to purport 20.9% ofthe Phone segment compared to 18.6% in 2017. However,Feature phone segment is estimated to still have problemsas 2018 net sales decrease with 2% and an uptick in 2019,landing in a flat development.

0,2

0,3

0,4

0,5

0,6

0,7

DESI 2014 DESI 2015 DESI 2016 DESI 2017Sweden EU

56%

60%

64%

68%

72%

76%

0

100

200

300

400

500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2017 2018E 2019E

MSE

K

Featurephone Sales as % of Total Net Sales

0%

20%

40%

60%

80%

100%

1550

1600

1650

1700

1750

1800

1850

2015 2016 2017 2018E 2019E

MSE

K

Phones Sales as % of Total Net Sales

0

100

200

300

400

500

600

700

0% 2% 4% 6% 8%

10% 12% 14%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2017 2018E 2019E

MSE

K

Net Sales EBITDA-margin

In a Base scenario a discounted cash flow analysis (DCF)illustrates an upside of 40.6 %. WACC is valued to 6.47 %with cost of equity of 10.87 %, and a perpetuity growth to2 %. Forward, Doro Care estimates to grow fastest, agrowth of 38 % to 2019E, and compose 18 % of net salesin comparison to 14 % 2017. Doro’s sales growth of 8 %till 2019E stems from new product launches, salessynergies between segments and increased demand for thecompany's existing products in Sweden, Great Britain andCentral Europe. At the same time Doro is estimated toimprove its EBIT-margin to 6.9 % 2019E relative to 4.7%2017, based on constant R&D costs, operational costs andcontinued development of competitive products in thePhones segment.

In a Bull scenario the Company is estimated for aimproved sales growth from successful product launcheswithin Phones and Doro Care. 2019E the net sales isestimated to improve of 12.9 % to 2.2 mdSEK. This leadsto an EBIT-margin of 8.7 % and a motivated target priceof 62.5 SEK, which results in a potential upside of 57.5 %.

In a Bear scenario a increased cost requirement withinR&D and flattening sales growth. This results in a lowerEBIT margin of 5.2 % 2019E with a net sales growth of5.9 %. Hence, a motivated target price per share of 36.2SEK and a potential downside of 14.6 %. The sensitivityanalysis beneath illustrates how changes in WACC andEBIT-margins affects indicative target prices.

DORO


Subscription business Digital Bundle subduesoperational risks and align Doro with digitization.Digital Bundles uses a pure digital alarm transmission,which means the alarm transmission itself and is adapted tothe new digital communication infrastructure. As shown inthe figure on the right, Doro Care combines units andservices in order to create income synergies and well-known systems in order to create secured and familialcustomer experiences. Doro Care and Digital Bundlesolutions are unique in the market today and connects toiCare-online in order to evaluate data, yourself, Doro Careteleservices and further hospitals. Contracts runs 2-4 years,with monthly fees creating recurring revenue for Doro.ARPU vary over periods due to unique solutions fordemand, however, development for new customers andsubscriptions steadily increases. ARPU levels is expected toincrease 14% from 2017 to 2019E, due to pricing power.Annual ARPU lands 1646 SEK in 2019E compared to1440 SEK in 2017. With an increase of newly acquiredsubscriptions of 17% in 2017, 2018E estimates to 6% and14% respectively, based on unique customer experience.The flattening refers to the lack of qualitative R&Ddevelopments for services.

Working capital turnover is expected to increase for Dorofrom 3.2x in 2017 to 4.7x and 3.7x in 2018E respectively2019E. Hence, the accounts payable and receivables is usedeffectively and subdues risk of accumulating obsoleteinventories. Profitability for Doro can be improved asDoro Care require less capital for newly acquired users,creating improved ROIC, as well as decrease WACC(operational risks and market risk premium flattens). Withincreased focus towards Doro Care this will be achieved,and that is precisely what management focuses on.

Sensitivity analysis

EBIT margin (%)

WA

CC

%

SEK 4% 5% 6% 7% 8%

4,5% 16,6 36,3 56,0 75,8 95,5

5,0% 12,4 27,7 43,1 58,5 73,8

5,5% 9,4 21,7 34,0 46,4 58,7

6,0% 7,2 17,3 27,4 37,5 47,6

6,5% 5,6 14,0 22,4 30,8 39,2

7,0% 4,3 11,4 18,4 25,5 32,6

0

100

200

300

0%

20%

40%

60%

80%

2016 2017 2018E 2019E

MSE

K

Subscriptions revenue

Subscriptions revenue % of Revenue % of Doro Care

0

100

200

300

400

500

600

700

0

400

800

1 200

1 600

2 000

2016 2017 2018E 2019E

SEK

Subscriptions (thousands) ARPU

SUMMARYDigitization is the process of converting analog information into digital information. In essence, thistrend is forcing organizations and businesses to restructure their business model in order toaccommodate for more demanding consumer base. Real-life studies illustrates how EBIT marginscan be improved in different sectors from what digitization can offer, where generations and retailcompose largest gains. Digitization will potentially impact every market that exists today and spawnseveral new ones. The winners will act now, and build a strategic advantage that leaves theircounterparts wondering what happened.

Companies are heavily punished by the market if they incorrectly digitize their business, as 400 billiondollars a year are projected to be wasted on failed attempts by large companies to digitally transformtheir business structure. The fact that only 8% of companies believe their current business model willremain viable through digitization, foreshadows the drastic change that will transpire.

Demand for management consulting arose when companies realized they did not possess thetechnical expertise to restructure their business by themselves. IT-consulting has widely impactedmanagement consulting and the continuous improvements in technology will likely keep it that way.Swedish actors are well positioned as the degree of digitization can be measured with datameasurements, such as smartphone penetration and NRI (Network readiness index), both of whichplace Sweden in top 3 globally. In Sweden, the most attractive customer bases are located in the thepublic sector, due to higher spending on digitized infrastructure, and banking, with increasingregulations and demanding digitized banking solutions. As this is occurring, consultants B3ITManagement, KnowIT and Acando are well positioned and have a great exposure compared to otheractors in the Swedish consultants. Additionally, service qualities have previously been proven withhigh customer satisfaction, which strengthens these consultants’ offerings towards in these sectors.

Another market that is currently undergoing heavy changes is eHealth. The global market is projectedto reach 244 billion USD by 2021 with a CAGR of 14.56%. The market is experiencing such rapidgrowth as patients requires improved insights in their health, companies are realizing the potentialearnings of remote treatment and mostly all services related to healthcare. Sadly, not all countriespossesses the digital infrastructure required for the change and revolution within the health sector.However, the essentiality of the execution, awareness and social tolerances for a change in thehealthcare system is impressively present in Sweden. That is primarily why SKL, announced theirvision of being the forefront country in the world using digitization’s and eHealth’s opportunities inpurpose to facilitate for people to achieve a good health and welfare.

A segment in eHealth with even higher growth outlook is mHealth. It is estimated to a substantialgrowth with CAGR of 27.0% from 2017 to 2022. This lucrative growth attributes to the rapidsmartphone penetration in the world, in combination with increasing consumption and demand fordata services. Locally in Sweden, doctors and nurses are willing to recommend applications andmHealth solutions to patients in a variety of healthcare services. This enhances and stresses therelevance, importance and potential solutions these applications will have. With a high legitimacy forpatients coming from doctors, this creates and drives eHealth market to another phase, in which afragmented market can become more consolidated with higher accuracy, function levels andutilization improve.

Telecommunication and mHealth is mostly integrated and have similar outlook. This quantifies andillustrates opportunities corporations like Telia, Doro, Apple and initiatives like KRY will expect.With this in mind Doro is especially great positioned for the potential market that can come to be.The cost effectivity is actually what creates the improved position compared to Getinge, as theimplementation barriers and market potential are estimated to be similar.


APPENDIX I


8,1

9,28,5

9,1 9,110,1

10,8 10,9

0

2

4

6

8

10

12

0

2

4

6

8

10

12

2010 2011 2012 2013 2014 2015 2016 2017

Equity/EBITDA Debt/EBITDA EV/EBITDA

US Enterprise Value/EBITDA Multiples Comparison by Year

APPENDIX II


0

5

10

15

20

25

30

35

40

0% 10% 20% 30% 40% 50% 60% 70%

NTM EV/EBITDA

NTM EBITDA Growth

KnowIT

HiQ International

Acando

Proact IT

SemconEnea AddNode Group

eWork Group

BTS Group

Source: Bloomberg

KNOWIT INCOME STATEMENT (BASE) 2017A 2018E 2019E

Net sales 2733,5 2995,3 3111,7

Solutions 1828,4 1980,5 2045,3

Experience 473,4 672,3 723,2

Insight 280,1 342,5 343,2

Operating costs -2440,0 -2646,3 -2714,9

EBITDA 293,5 349,0 396,8

Depreciation of tangible fixed assets -11,7 -11,8 -11,7

EBITA 281,8 337,2 385,1

Depreciation of intagible fixed assets -5,8 -8,2 -8,2

EBIT 276,0 329,0 376,9

Financial Income 0,6 1,0 1,8

Financial cost -9,9 -11,8 -14,1

Result after financial items 266,7 318,2 364,7

APPENDIX III


DORO INCOME STATEMENT 2015 2016 2017 2018E 2019E

Net Sales 1838,0 1959,1 1924,0 1982,3 2084,7

Nordic 492,9 353,1 332,6 320,4 327,0

Europe, Middle East and Africa 462,9 461,4 437,0 431,1 447,6

DACH 435,8 462,9 522,4 543,0 568,8

UK 267,9 266,4 239,9 223,7 226,8

US and Canada 149,5 189,7 96,1 98,6 103,0

Other 12,3 18,9 22,6 24,3 26,5

Care 0,0 210,1 276,6 331,1 381,4

Central overhead 16,7 -3,4 -3,2 10,1 3,5

Other Revenue 0,0 17,6 34,4 26,4 32,3

Revenue 1838,0 1976,7 1958,4 2008,7 2117,0

Operating costs -1698,8 -1855,3 -1802,2 -1831,0 -1913,1

EBITDA 139,2 121,4 156,2 177,7 203,9

Depreciation and impairment -39,1 -66,3 -59,0 -43,5 -54,8

Amortization and impairment -4,9 -7,4 -5,2 -6,0 -6,3

Other expenses 0,0 0,0 0,0 0,0 0,0

EBIT 95,2 47,7 92,0 128,3 142,8

Interest income 0,0 0,0 0,6 0,2 0,3

Interest costs -10,8 -9,3 -2,4 -6,7 -5,3

EBT 84,4 38,4 90,2 121,8 137,8

Tax on profit -20,6 -8,4 -25,2 -32,3 -36,2

Earnings 63,8 30,0 65,0 89,5 101,6

DORO DCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Terminal

Year

Sales 1959 1924 1982 2085 2192 2267 2344 2424 2472 2522 2572 2623 2676 2729 2784 2840 2897Operating income

(EBIT) 48 92 128 143 153 172 178 184 188 192 195 199 203 207 212 216 220

% Margin 2,4% 4,8% 6,5% 6,9% 7,0% 7,6% 7,6% 7,6% 7,6% 7,6% 7,6% 7,6% 7,6% 7,6% 7,6% 7,6% 7,6%Depreciation &

amortization -74 -64 -49 -61 -59 -61 -64 -66 -67 -68 -70 -71 -73 -74 -75 -77 -78

% Sales -3,8% -3,3% -2,5% -2,9% -2,7% -2,7% -2,7% -2,7% -2,7% -2,7% -2,7% -2,7% -2,7% -2,7% -2,7% -2,7% -2,7%

Taxes -8 -25 -32 -36 -36 -24 -25 -26 -27 -27 -28 -28 -29 -29 -30 -31 -31

% Sales -0,4% -1,3% -1,6% -1,7% -1,6% -1,1% -1,1% -1,1% -1,1% -1,1% -1,1% -1,1% -1,1% -1,1% -1,1% -1,1% -1,1%

Capex -96 -70 -68 -73 -77 -73 -94 -97 -99 -101 -103 -105 -107 -109 -111 -114 -33

% Sales 4,9% 3,6% 5,4% 5,4% 5,4% -3,2% -4,0% -4,0% -4,0% -4,0% -4,0% -4,0% -4,0% -4,0% -4,0% -4,0% -1,1%

Net Working Capital 7 -31 97 5 48 28 29 30 30 31 32 32 33 33 34 35 36

% Sales 0,4% -1,6% 4,9% 0,3% 2,2% 1,2% 1,2% 1,2% 1,2% 1,2% 1,2% 1,2% 1,2% 1,2% 1,2% 1,2% 1,2%Change in Working

Capital ? 38 -128 92 -43 -21 1 1 1 1 1 1 1 1 1 1 -1Unlevered Free Cash

Flow 0 21 140 50 100 42 24 25 26 26 27 27 28 28 29 30 113Present Value of Free

Cash Flow 0 20 138 46 87 34 19 18 17 17 16 15 15 14 13 13 1051

REFERENCES


1 Accenture. Digital Disruption Study. 2018-03-25.

2 Genpact. Putting Digital To Work: The Lean Digital Way. 2017.

3 Ernst & Young. The Digitisation of Everything: How Organisations Must Adapt To Changing Consumer Behavior. 2011.

4 Statista. Global Smartphone OS Market Share Held By RÌM (BlackBerry) From 2007 To 2016, By Quarter. 2018.

5 Coinmarket. Bitcoin. 2018-03-05.

6 GSMA. The Mobile Economy 2018. 2018.

7 Mordor Intelligence. E-Health Market – Growth, Trends and Forecast (2017-2022). 2017-12.

8 Statista. Size Of Global Consulting Market From 2011 To 2020, By Segment. 2018.

9 World Economic Forum. The Global Information Technology Report 2016: Innovating In The Digital Economy. 2016.

10 Grandview Research. eHealth Market Analysis By Product. 2016-04.

11 McKinsey & Company. Värdet Av Digital Teknik I Den Svenska Vården. 2016.

12 Pwc. Den Digitala Patienten Är Här. 2016-06.

13 Research2Guidance. mHealth Developer Economics 2017 Status And Trends. 2017

LINC – Lund University Finance Society | Var vänlig ta del av våra ansvarsbegränsningar i slutet av rapporten

DISCLAIMER

21

Ansvarsbegränsning Analyser, dokument och all annan information som härrör från LINC Research & Analysis (LINC R&A) är framställt i informationssyfte och är inte avsett att vara rådgivande. LINC är en ideell organisation (organisationsnummer 845002-2259) och analyser eller annan information som härrör från LINC R&A ska inte betraktas som investeringsrekommendationer.

Informationen i analysen är baserad på källor, uppgifter och personer som LINC R&A bedömer som tillförlitliga, men LINC R&A kan aldrig garantera riktigheten i informationen. Den framåtblickande informationen i analysen baseras på subjektiva bedömningar om framtiden, vilka alltid är osäkra och därför bör användas försiktigt. LINC R&A kan aldrig garantera att prognoser och framåtblickande estimat kommer att bli uppfyllda. Om ett investeringsbeslut baseras på information från LINC R&A eller person med koppling till LINC R&A, så fattas dessa alltid självständigt av investeraren. LINC R&A frånsäger sig därmed allt ansvar för eventuell förlust eller skada av vad slag det än må vara som grundar sig på användandet av analyser, dokument och all annan information som härrör från LINC R&A.

Intressekonflikter och opartiskhet För att säkerställa LINC R&A’s oberoende har LINC R&A inrättat interna regler, utöver detta så är alla studenter som skriver för LINC R&A skyldiga att redovisa alla eventuella intressekonflikter. Dessa har utformats för att säkerställa att Finansinspektionens föreskrifter och allmänna råd om investeringsrekommendationer riktade till allmänheten samt hantering av intressekonflikter (FFFS 2005:9) efterlevs. Material från LINC R&A ska aldrig betraktas som investeringsrekommendationer.

Emil Erbing: äger aktier i KnowIT. Johan Cisneros: äger inga aktier.

Övrigt LINC R&A har ej mottagit betalning eller annan ersättning för att göra analysen.

UpphovsrättDenna analys är upphovsrättsskyddad enligt lag och är LINC R&A’s egendom (© LINC R&A 2017).

digitization › wp-content › uploads › 2018 › ... · retail • individualnew products •...

Documents