interim results q4 2009
TRANSCRIPT
© EDB Business Partner > slide 2Presentation > 4 Quarter 2009
Revenue 1,917 million (10% y/y)
EBITA 168 million (12% y/y)
EBITA margin 8,8 %
Q4 HIGHLIGHTS GROUP
Cost program secures sustainable margin
B&F continues to outperform market
New signings NOK 1.4 bn (+64% y/y)
© EDB Business Partner > slide 3Presentation > 4 Quarter 2009
Q4 2009 KEY METRICS
Revenue
1,917Q4 08: NOK 2,145 mill (-10%)
EBITA
168Q4 08: NOK 193 mill (-12%)
CAPEX
62Q4 08: NOK 71 mill (-13%)
Cash-flow
374Q4 08: NOK 606 mill (-38%)
EBIT
117Q4 08: NOK 135 mill (-13%)
EPS (NOK)
0.59Q4 08: NOK 0.54 (+9%)
Numbers in NOK million
BUSINESS
AREASHighlights
Key figures
© EDB Business Partner > slide 5Presentation > 4 Quarter 2009
Q4 HIGHLIGHTS – IT OPERATIONS
Increased EBITA margin
due to effects from cost
program
Managing CAPEX
New signings NOK 450
million
Extended agreement with
Coor; SEK 200 million
(NOK MILLION) Q4 2009 Q4 2008* Y/Y
Operating revenue 1,110 1,211 -8%
EBITA 97 101 -4%
EBITA % 8.7 8.4
CAPEX 58 58 0%
Employees 2,004 2,030
* Pro forma figures
IT Operations
55 %
© EDB Business Partner > slide 6Presentation > 4 Quarter 2009
(NOK MILLION) Q4 2009 Q4 2008* Y/Y
Operating revenue 506 626 -19%
EBITA 48 60 -20%
EBITA % 9.4 9.6
CAPEX 3 5 -40%
Employees 2,811 2,997
Q4 HIGHLIGHTS – APPLICATION SERVICES
High utilisation; 78%
Revenue affected by
lower market prices
Securing margin by
managing sub-
contractors
Integrating Nordic and
Global units
5 year SAP-agreement
with Falck* Pro forma figures
Application Services
25%
© EDB Business Partner > slide 7Presentation > 4 Quarter 2009
Q4 HIGHLIGHTS – SOLUTIONS
(NOK MILLION) Q4 2009 Q4 2008 Y/Y
Operating revenue 405 382 6%
EBITA 51 52 -2%
EBITA % 12.6 13.7
CAPEX 2 3 -33%
Employees 1,006 985
B&F gaining share with
organic growth 7% y/y
Partnership agreement
with Sparebanken Vest
Continued strong EBITA
despite high use of sub-
contractors
New card services contract
NOK 50 million
Deliver solutions for the
Norwegian National Budget
Solutions
20 %
2009Highlights and
Key figures
© EDB Business Partner > slide 9Presentation > 4 Quarter 2009
HIGHLIGHTS 2009 – GROUP
Revenue decrease in line
with market development
Strong growth B&F; +6% y/y
All-time high signings;
NOK 8.6 bn
(NOK MILLION) 2009 2008 Y/Y
Operating revenue 7,492 7,871 -5%
EBITA 603 724 -17%
EBITA % 8.1 9.2
Operational
cash-flow 591 759 -22%
CAPEX 215 329 -35%
Employees 5,991 6,175
© EDB Business Partner > slide 10Presentation > 4 Quarter 2009
STRONG CAPITAL DISCIPLINE IN 2009
Significant effect from restructuring program– OPEX reduced by NOK 400 million (5,5%)
– CAPEX reduced by NOK 114 million (35%)
– Total spending reduced by NOK 514 million
Sustaining CAPEX level due to more leasing and
lower HW cost
CAPEXOPEX
7 288
6 888
6 600
6 900
7 200
7 500
2008 2009
329
215
0
200
400
600
2008 2009
© EDB Business Partner > slide 11Presentation > 4 Quarter 2009
ENTERING 2010 WITH SOLID BACKLOG; 12.6 BN
Order backlog secures visibility
(NOK MILLION) 2009
DnB NOR 3 800
4 sparebanker(*) 800
Sparebanken Vest 500
Green Cargo 300
REC 225
Stor-Stockholm Lokaltrafikk 200
Posten Sverige 150
Sparebanken Pluss 150
Centrala Studiestödsnämnden 100
Storebrand 100
Ten largest signings 2009
* Sparebanken Sør, Sparebanken Helgeland, Sparebanken
Sogn og Fjordane, Gjensidige Bank
4 978
3 230
2 1122 300
0
1 000
2 000
3 000
4 000
5 000
6 000
2010 2011 2012 2013
OUTLOOKFuture prospects
© EDB Business Partner > slide 13Presentation > 4 Quarter 2009
NORDIC IT SERVICES MARKET NOK 130 BN
CHALLENGING 2009
Significant reduction in
IT spending
Customers adjusted to
economic conditions
– Cost oriented
– Postponed projects
Impact on IT-services
– Reduced volumes
– Price pressure
– Increased outsourcing pipeline
Expect modest spending in 2010
IDC survey January 2010 n = 600
Significant increase
6.0 %
Modest increase
19.2 %
About the same
50.2 %
Modest decline
14.3 %
Significant decline
10.3 %
© EDB Business Partner > slide 14Presentation > 4 Quarter 2009
Illustration photo
STRATEGIC GROWTH PRIORITIES BANK & FINANCE
Still potential in Norway
– Secured customer base
– Aggressive product launches
Double-digit growth international
– Channel and Card solutions
– Service based delivery model to tier 2-3
Launching iPhone apps.
– Banks to start use solution Spring 2010
– Improves availability and customer satisfaction
EDB to launch bank apps
on iPhone spring 2010
CLEAR OPERATIONAL PRIORITIES 2010S
us
tain
ed
va
lue
cre
ati
on Develop and Attract Talent
Accelerated organic growth
Increase Agility and Competitiveness
One improved EDB
THE BEST PARTNER for creating lasting
value from information
technology for Nordic customers around the world.
SUMMARY
© EDB Business Partner > slide 17Presentation > 4 Quarter 2009
New signings NOK 8.6 bn
Strong visibility through NOK 12.6 bn in backlog
Balanced revenue mix
Significant effect from restructuring program
Bank & Finance outperforming market
SUMMARY Q4 AND 2009 – GROUP