Goodtech — Investor Presentation 2010

Aug 24, 2010

Goodtech ASA

Presentation 2010, first half year

Vidar Låte, CEO

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Agenda

• Highlights
• Financial review
• Outlook 2010

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Highlights, first half year

• Back on Track
• Turnover MNOK 317.7 compared with MNOK 273,8 in 1st half 2009
• EBITDA MNOK 20.8 compared with MNOK 13,5 in 1st half 2009
• All time high Turnover and EBITDA in Q2 2010
• High level of activity in the market. Strong order intake in 1st half 2010. Order book kept on almost same level as per Q1
• The subsidiary Lecab Materialhantering AB has changed name to Goodtech Solutions Göteborg AB. Won MSEK 30.3 contract for supply of timber handling production line in April.
• Major strengthening of Goodtech’s position in the Nordic market. “Merging” with Swedish El och Industrimontage AB.
• Separate information will be given after Q2 presentation

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Market

• Business drivers for growth – market opportunities
• Industry
• Environment

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Goodtech products and services

• Environmental solutions
• Technology products – Product technologies
• Industrial solutions

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Financial Review

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Main figures

(NOK 1.000)	YTD 10	YTD 09	Q2 10	Q2 09	2009
Revenues	317 655	273 764	180 751	139 428	562 014
Product expenses	149 998	129 480	87 888	69 235	266 971
Salary expenses	112 131	102 340	56 180	51 335	203 031
Other operating expenses	34 733	28 416	18 527	13 476	64 796
EBITDA	20 793	13 528	18 156	5 382	27 216
EBITDA %	6,5 %	4,9 %	10,0 %	3,9 %	4,8 %
Depreciation	2 418	2 500	1 226	1 590	5 801
EBIT	18 375	11 028	16 930	3 793	21 414
Net financial items	1 903	-216	1 237	173	-230
Share of Profit from Associated comp.	50	0	50	0	0
Profit before taxes	20 329	10 812	18 217	3 966	21 185
Taxes	5 692	3 027	5 101	1 110	4 707
Net result	14 637	7 785	13 116	2 855	16 478
Earnings per share	0,09	0,05	0,08	0,02	0,10
Deluted eqarnings per share	0,09	0,05	0,08	0,02	0,10

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Quarterly revenue - historical

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Quarterly earnings - historical

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Financial highlights – Balance sheet

(NOK 1.000)	30.06.10	30.06.09	31.12.2009
Fixed tangible assets	24 114	24 178	24 724
Intangible assets	201 978	203 744	210 731
Investments in Associated companies	10 050	0	0
Deferred tax assets	20 331	25 602	24 842
Long-term receivables	0	2 287	0
Other fixed assets	171	90	81
Total fixed assets	256 644	255 900	260 378
Inventory	28 603	20 478	22 849
Accounts receivables	109 698	77 672	91 485
Other short term receivables	42 766	54 185	27 906
Cash and cash equivalents	108 185	107 343	118 274
Total current assets	289 252	259 679	260 514
Total assets	545 897	515 579	520 892
Total invested equity	251 136	239 559	251 136
Total retained earnings	136 794	117 346	121 582
Minority interests	851	731	596
Total equity	388 782	357 636	373 314
Long-term debt	14 082	28 445	27 203
Short-term debt	143 032	129 498	120 374
Total debt	157 114	157 943	147 577
Total equity and debt	545 897	515 579	520 892

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Financial highlights – Cash flow

(NOK 1.000)	YTD 10	YTD 09	Q2 10	Q2 09	2009
Cash flow from operations	5 648	5 752	24 070	13 791	23 367
Cash flow from investments	-13 139	3 844	-7 486	-2 768	3 919
Cash flow from financials	-310	-843	-1 346	-1 649	12
Net changes in cash from period	-7 801	8 753	15 238	9 374	27 298
Net Cash funds at beginning of period	113 445	90 187	90 394	86 769	90 187
Effects of exchange rate fluctuation on cash held	383	-2 351	395	446	-4 040
Net Cash funds at end of period	106 027	96 589	106 027	96 589	113 445

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Employees per business area

Total no. of employees by 30.06.2010: 359

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Organic growth vs. acquisitions

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Industry business area

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Industry business area - Highlights

• Turnover MNOK 241.3 compared to MNOK 202.2 in 1st half 2009.
• EBITDA MNOK 24.0 compared to MNOK 15.5 in 1st half 2009.
• Strong improvement in 2nd quarter. Improvement in both Sweden and Norway
• Strong order intake in 2nd quarter. Order backlog same level as Q1.
• Goodtech Germany was sold to local management in Q2
• New contracts in Q2
• Dolphin, HMI and control systems, MNOK 6,7
• AB Hilmer Andersson, production line, MSEK 30,3

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Industry - figures

NOK 1000	YTD 10	YTD 09	Q2 10	Q2 09	2009
Revenue	241 323	202 193	132 074	105 245	404 611
EBITDA	23 977	15 490	17 272	6 646	27 580
EBITDA margin %	9,9 %	7,7 %	13,1 %	6,3 %	6,8 %
No. of employees	286	259	286	259	274

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Industry – historical figures

Revenues per Quarter

EBITDA per Quarter

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Environment business area

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Environment business area - Highlights

• Turnover MNOK 79.6 compared with MNOK 74.3 in 1st half 2009
• EBITDA MNOK 5.2 compared with MNOK 4.8 in 1st half 2009
• Strong margin improvements in Q2
• Order book has decreased in Q2 compared with Q1. One contract MSEK 20 was signed, but not finally formally confirmed until August. This contract is not in the order book per Q2
• Goodtech Åland has reentered the Norwegian market with a new contract of MNOK 5,6

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Environment - figures

NOK 1000	YTD 10	YTD 09	Q2 10	Q2 09	2009
Revenue	79 603	74 256	50 413	35 628	162 974
EBITDA	5 158	4 798	5 171	2 518	12 653
EBITDA margin %	6,5 %	6,5 %	10,3 %	7,1 %	7,8 %
No. of employees	59	55	59	55	59

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Environment – historical figures

Revenues per Quarter

EBITDA per Quarter

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Order book

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Highlights - Product Technologies

• TurboCron®
• Cooperation with Hydro has been terminated. Objectives for technology has been changed lately
• Separate termination agreement has been written
• Both parties have rights to commonly developed IPRs
• The termination has no effect on the profit and loss statement for Goodtech
• Goodtech is using their knowledge to define alternative and flexible solution for heat intensive processes. Revised technical solution are being developed independent of any end user partners

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Market / Risks for Goodtech

• Market for Industry solutions – some risk
• Investment driven business is improving - cyclic

• Market can be challenging but seems to be more normal

• Market for Environmental solutions and products – some risk

• Market seems to be normalized. However there can be strong competition

• Financial risks for Goodtech

• Change in international economy can affect Goodtech business
• In general small currency exposure
• In general small risk for contract cancellation

• In general small risk for loss on receivables

• Technology and product development

• Some risk for technical problems causing delay, extra cost and postponed completion of developments

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Outlook 2010

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Outlook 2010

• Day to day service, maintenance and operation related business continue to perform well
• Involved in several markets. Our products and services are attractive for a broad range of customers. Margins are improving
• Investment driven market is improving – promising start in 2010
• Continue to see higher intake of orders
• Strategic focus on winning larger contracts
• Industry, Offshore, Infrastruktur
• Larger infrastructure projects => NEW OPPORTUNITIES FOR GOODTECH with EIAB onboard = PLATFORM FOR ORGANIC GROWTH
• Build platform for future organic growth
• Product and technology development as platform for international business development – continue Goodtech Innovation process
• Continue building strong Goodtech brand
• Continue strengthening our position in a positive market in Sweden

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Continue with presentation of EIAB case...

THANK YOU!