Q3 Report 2011

2011-10-27 Q3-report 1

• With Cybercom since 2010, MD Cybercom Finland

• Experience change management, international business, global

sourcing, public sector

Past

• Senior Vice President at Tieto Government business area

– The Business Unit had over 1400 people, 5 countries

– Turnaround of the business in Denmark in 2008,

turnaround in joint venture company TietoSaab Systems

• Vice President of Business Development in

Healthcare and Welfare

• Member of the Board at Tietokarhu Oy

• Member of the Board at TietoSaab Systems Oy

• Director at Finland Post/Suomen Posti,

eCommunication Services

• Quality manager, PM, Consultant at Cap Gemini

Portrait Petteri Puhakka

2011-10-27 Q3-report 2

• Cost for CEO was

SEK 4.8 million.

• Currency effects on sales of

SEK -2.9 million, the net

effect on EBITDA SEK 0.1

million.

• Negative net growth in

employees, in total 80 fewer

consultants.

• The performance in

segments Sweden and

International were lower

than expected with weak

July and August .

• The turnaround in Finland is

visible

Q3 2011

2011-10-27 Q3-report 3

SEK million Q3

2011

Q3

2010

Sales 321.8 328.8

Employees 1,581 1,749

EBITDA 15.4 35.0

EBITDA % 4.8% 10.6%

EBIT 5.6 22.2

EBIT % 1.7% 6.8%

Cash flow -8.6 23.0

Equity/assets ratio 58.5% 60.5%

Executive team

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Petteri Puhakka

President

and CEO

Jukka Iivonen

MD Cybercom

Finland

Odd Bolin

MD Cybercom

Sweden

Karsten Adelmark

MD Cybercom

Denmark

Conny Karlsson

MD Cybercom

International

Kristina Cato

Communication &

IR Director

Per Sundqvist

Acting

CFO

Profitability objective

• Cybercom shall be one of the more profitable companies amongst its closest

comparable competitors and achieve an EBIT margin of 10%.

Growth objective

• Cybercom shall aim towards a growth of 10% annually over a business

cycle.

Acquisition policy

• Organic growth and profitability are the primary objectives for Cybercom but

selective acquisitions that are accretive and will contribute to growth, will be

evaluated if there is a strategic fit.

Debt policy

• Cybercom shall have a net debt over time, but net debt shall not exceed

30% of equity.

Dividend policy

• Cybercom shall pay a dividend to its shareholders of at least 30% of the net

income, unless there are special considerations relating to the financial

situation or company plans.

New financial objectives

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Segment Sweden

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• Business and operational integration has not yet been completed.

• Focus on more streamlined, effective and cost-efficient processes.

• The sales increase is mainly due to increased use of

subconsultants.

• Performance in two business areas was weak during the summer

• Salary increase of 3%, not effectively offset by corresponding

price increases.

• Project delivery efficiency has not been sufficient.

• Bad debts totalled SEK 3.6 million for the period.

SEK million Q3 2011 Q3 2010

Sales 236.4 224.2

Employees 985 1,010

EBITDA 13.8 22.0

EBITDA, % 5.8% 9.8%

• The sales decreased mainly due to the decrease

in Nokia Siemens Network business and loss of

the Nokia business.

• There are 165 fewer employees.

• Operation in Beijing, China closed.

• The restructuring programme and the new

organisation resulted in positive effects and a

significantly improved EBITDA margin.

Segment Finland

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SEK million Q3 2011 Q3 2010

Sales 51.7 64.4

Employees 307 472

EBITDA 8.2 5.9

EBITDA, % 15.9% 9.2%

• Decrease in sales due to two major telecom projects’

winding down in Africa - not been replaced with other

business at the same pace.

• Employee growth is mainly in Cybercom Poland, which is

showing a good quarter.

• The Danish operation has had decreased sales but good

profit levels.

• Business in China has been volatile with decreasing sales

and no profit.

• Cybercom closed its sales office in the US.

Segment International

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SEK million Q3 2011 Q3 2010

Sales 41.7 53.5

Employees 270 243

EBITDA -0.8 10.3

EBITDA, % -1.9% 19.3%

Sales & EBITDA RTM

2011-10-27 Q3-report 9

Sales by sector Q3

2011-10-27 Q3-report 10

• Major customers

– Ericsson, Sony Ericsson, ST Ericsson, Millicom, Volvo, TeliaSonera,

SAAB AB, Alma Media Group, Transportstyrelsen and MTV3.

• Turnkey assignments 39% (54) of total sales.

• The ten largest customers are 45% (51).

• Largest customer is 12% (16.7).

• Framework agreement customers accounts for 54% (62).

• Public, industry, incl automotive and energy as well as media are

growth markets for Cybercom’s sales.

• New customers and assignments won

– Partnership with the Swedish Travel and Tourist Industry Federation.

– The Swedish Environmental Protection Agency selected Cybercom for a

new IT system for hunting of predators in Sweden.

– Solutions for management of e-archive solutions,

Swedish Transport Agency

– A large video conference implementation Interoute

– A mobile customer application for Betongindustri

– New application development for Android powered tablets for a consumer

electronics company

Cybercom’s strategy is to be an ICT consulting company with a strong

platform in the Nordics that offer world class services with global reach

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“Cybercom has a unique position – a complete supplier in the eco system of

digital services”

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Eco-system of digital services

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Operators

Device

Manufacturers

Platform

Developers

Application

& Service

Developers

Content

Providers

Infrastructure

Operators TeliaSonera

Telenor

Tele2

China Mobile

Millicom

3

Platform

Developers Apple Samsung

Qualcomm Intel

ST Ericsson TI

Google, Nokia

RIM Microsoft

Linux foundation

Infrastructure Ericsson

Nokia-Siemens

Cisco

Akamai

RedHat

HP

Content

Providers AlmaMedia Sony SF

SVT TV4 MTV3

Gracenote

Facebook

Twitter

Application

& Service

Developers AlmaMedia

Handelsbanken

Vägverket

SMHI Apello Scalado

Device

Manufacturers Nokia Apple

Sony Ericsson

HTC LG ZTE Samsung

Doro Sandvik Kone

Volvo Bosch

• Cybercom’s home market is the Nordics representing the

majority of company sales. With additional established

operations in Poland, Romania, India, Singapore, and

China Cybercom has positioned itself as an attractive

partner for existing and new customers.

• Cybercom’s strategy is to offer customers cross-sector

expertise with global delivery. It is a business model

designed to meet the market needs in economic upswing

as well as in recession.

• Cybercom makes no forecasts.

Outlook

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