AI assistant
Itera Interim / Quarterly Report 2009
3639_rns_2010-02-16_98e88aa4-683c-4f68-b555-136eb2ce38db.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
DREAM IT.
PLAN IT.
DO IT.
Interim Report
4th Quarter 2009
Oslo, 16th February 2010
Arne Mjøs, CEO
ITERACONSULTING GROUP
ITERACONSULTING GROUP
Agenda
- Market Environment
- Financial Performance
- Strategic Direction
- Outlook
- Q & A
16 February 2010
Interim Report
2
ITERACONSULTING GROUP
Market Environment
- The IT services industry is slowly recovering
- Pent-up demand for new technologies will be released as enterprises focus on new growth opportunities and increase spending plans
- Growth dynamics is shifted from private industry to government
- Competition still intense and price pressure remains
- Increasing demand for offshoring to lower cost structures
- Increased investments in business intelligence, Software-as-a-Service (SaaS) and the second Internet generation (web 2.0, social SW)
- Lower staff turnover and less pressure on wage inflation
The dark clouds looming over the IT services industry is lifting. The future is bright for our next generation expertise.
16 February 2010
Interim Report
ITERACONSULTING GROUP
Gartner: Western Europe IT spending to Grow 5.2 Percent in 2010
Note: Forecast in euros; due to currency fluctuation of pounds versus euros, inclusion of the U.K. lowers overall results by approximately 2.5%.
Source: "Gartner IT Services Europe: Forecast Database," ITSV-EU-DB-DA018, September 2009
16 February 2010
Interim Report
ITERACONSULTING GROUP
Financial Highlights 2009
- Lower business volumes compared to last year, especially in Denmark and Sweden
- Sales revenue of NOK 411 million, down by 8 %
- Cost reductions balance some of the changes in demand
- EBITDA of NOK 40 million and 9.7 % margin
- EBIT of NOK 27 million and 6.4 % margin
- Strong operational cash flow of NOK 47 million
| (All figures in NOK million) | 2009
1-12 | 2008
1-12 | change
% | 2009
10-12 | 2008
10-12 | change
% |
| --- | --- | --- | --- | --- | --- | --- |
| Sales revenue | 411.1 | 448.9 | -8 | 99.5 | 117.0 | -15 |
| Gross profit | 344.0 | 373.9 | -8 | 84.3 | 99.2 | -15 |
| EBITDA | 39.7 | 56.5 | -30 | 8.6 | 14.6 | -41 |
| EBITDA margin | 9.7 % | 12.6 % | -23 | 8.6 % | 12.5 % | -31 |
| EBIT | 26.5 | 44.2 | -40 | 5.5 | 11.4 | -52 |
| EBIT margin | 6.4 % | 9.8 % | -3 | 5.5 % | 9.7 % | -4 |
| Profit before tax | 27.2 | 46.4 | -41 | 5.8 | 12.3 | -53 |
| Profit margin | 6.6 % | 10.3 % | -3.7 | 5.8 % | 10.5 % | -4.7 |
| Employees | 370 | 391 | -5 | 370 | 391 | -5 |
16 February 2010
Interim Report
ITERACONSULTING GROUP
Profit & Loss Account
| (All figures in NOK 1000) | 2009
1-12 | 2008
1-12 | change
% | 2009
10-12 | 2008
10-12 | change
% |
| --- | --- | --- | --- | --- | --- | --- |
| Sales revenue | 411 096 | 448 850 | -8 | 99 542 | 116 996 | -15 |
| Cost of sales | 67 049 | 74 942 | -11 | 15 222 | 17 761 | -14 |
| Gross profit | 344 047 | 373 908 | -8 | 84 320 | 99 235 | -15 |
| Personnel expenses | 269 098 | 273 734 | -2 | 65 258 | 73 645 | -11 |
| Other operating expenses | 35 199 | 43 669 | -19 | 10 451 | 10 943 | -4 |
| Operating profit before depr. (EBITDA) | 39 749 | 56 505 | -30 | 8 610 | 14 646 | -41 |
| EBITDA margin | 9.7 % | 12.6 % | -2.9 | 8.6 % | 12.5 % | -3.9 |
| Depreciation | 13 296 | 12 320 | 8 | 3 134 | 3 256 | -4 |
| Operating profit (EBIT) | 26 453 | 44 185 | -40 | 5 476 | 11 390 | -52 |
| EBIT margin | 6.4 % | 9.8 % | -3.4 | 5.5 % | 9.7 % | -4.2 |
| Net financial items | 768 | 2 254 | -66 | 306 | 916 | -67 |
| Profit before taxes (EBT) | 27 221 | 46 439 | -41 | 5 782 | 12 306 | -53 |
| Income tax | 7 622 | 12 504 | -39 | 1 619 | 2 948 | -45 |
| Profit for the period | 19 599 | 33 935 | -42 | 4 163 | 9 358 | -56 |
2009 is charged by;
- NOK 3.7 million related to loss the Swedish hosting unit
- NOK 1.1 million related to Objectware lay-off in Sweden
- NOK 2.9 million related to the Danish unit
- NOK 3.0 million related to the start-up in Ukraine
- NOK 1.5 million related to loss in accounts receivable
Reduced operating expenses and personnel expenses balance some of the changes in demand.
16 February 2010
Interim Report
ITERACONSULTING GROUP
Cash Flow
| (All figures in NOK 1000) | 2009
1-12 | 2008
1-12 | change
% | 2009
10-12 | 2008
10-12 | change
% |
| --- | --- | --- | --- | --- | --- | --- |
| Cash flow from operating activities | | | | | | |
| Cash flow from operations (EBITDA) | 39 749 | 56 505 | -30 | 8 610 | 14 646 | -41 |
| Change in balance sheet items | 6 817 | 1 507 | 352 | 16 633 | 10 036 | 66 |
| Net cash flow from operating activities | 46 566 | 58 012 | -20 | 25 243 | 24 682 | 2 |
| Cash flow from investment activities | | | | | | |
| Investment in tangible fixed assets | -14 991 | -22 836 | 34 | -5 530 | -5 851 | 5 |
| Net cash flow from investment activities | -14 991 | -22 836 | 34 | -5 530 | -5 851 | 5 |
| Cash flow from financing activities | | | | | | |
| Purchase of own shares | -3 422 | -12 439 | 72 | -997 | -849 | -17 |
| Exercise of stock option programs | 0 | 4 574 | -100 | 0 | 0 | |
| External dividend paid | -16 748 | -42 287 | 60 | 0 | 0 | |
| Net cash flow from financing activities | -20 170 | -50 152 | 60 | -997 | -849 | -17 |
| Net change in bank deposits and cash | 11 405 | -14 976 | 176 | 18 716 | 17 982 | 4 |
| Bank deposits at the end of the period | 71 672 | 60 267 | 19 | 71 672 | 60 267 | 19 |
During a year of tough market conditions we provided strong operating cash flow of NOK 47 million, of which NOK 25 million in the fourth quarter.
16 February 2010
Interim Report
ITERACONSULTING GROUP
Cash Flow From Operations
Strong cash flow from operations amounted to MNOK 25 in Q4 2009.
16 February 2010
Interim Report
ITERACONSULTING GROUP
Balance Sheet
- Cash NOK 72 million
- Equity ratio 50 %
- No interest bearing debt
- No corporate tax payable, NOK 18 million in total deferred tax assets
| (All figures in NOK 1000) | 2009
31 Dec | 2008
31 Dec | change
% |
| --- | --- | --- | --- |
| Fixed assets | | | |
| Deferred tax assets | 13 029 | 20 445 | -36 |
| Other fixed assets | 33 711 | 32 016 | 5 |
| Total fixed assets | 46 740 | 52 461 | -11 |
| Current assets | | | |
| Work in progress | 4 323 | 4 892 | -12 |
| Accounts receivable | 41 201 | 52 449 | -21 |
| Other receivables | 6 574 | 8 858 | -26 |
| Bank deposits | 71 672 | 60 267 | 19 |
| Total current assets | 123 770 | 126 466 | -2 |
| Total assets | 170 510 | 178 927 | -5 |
| Equity | | | |
| Share capital | 25 602 | 25 601 | 0 |
| Other equity | 39 242 | 61 643 | -36 |
| Net profit for the period | 19 599 | 0 | |
| Total equity | 84 443 | 87 244 | -3 |
| Current liabilities | | | |
| Accounts payable | 15 300 | 13 478 | 14 |
| Tax payable | 0 | 0 | |
| Public duties payable | 26 593 | 34 998 | -24 |
| Other short term liabilities | 44 174 | 43 208 | 2 |
| Total current liabilities | 86 067 | 91 683 | -6 |
| Total equity and liabilities | 170 510 | 178 927 | -5 |
16 February 2010
Interim Report
ITERACONSULTING GROUP
Quarterly Top-Line Development
16 February 2010
Interim Report
10
ITERACONSULTING GROUP
Quarterly Bottom-Line Development
EBITDA
NOK million
EBITDA margin
16 February 2010
Interim Report
ITERACONSULTING GROUP
Quarterly Bottom-Line Development
EBIT
NOK million
EBIT margin
%
2007 2008 2009
16 February 2010
Interim Report
ITERACONSULTING GROUP
Rolling 12-Month (RTM)
The slowdown after the financial crisis has made its mark but the market is recovering now.
16 February 2010
Interim Report
ITERACONSULTING GROUP
Shares and Options
- End of period number of own shares amounted to 2.7 million (3.1 %) at an average price of NOK 3.24 per share
- The stock option program are not in the money
| 2009 | 2008 | change | |
|---|---|---|---|
| 1-12 | 1-12 | % | |
| Average number of outstanding shares | 83 395 215 | 84 541 038 | -1 |
| Average number of shares diluted | 83 395 218 | 84 541 038 | -1 |
| End of period number of shares | 85 340 346 | 85 340 346 | 0 |
| End of period number of shares diluted | 82 657 462 | 85 139 587 | -3 |
| End of period number of own shares | 2 682 884 | 1 588 884 | 69 |
| End of period number of stock options | 0 | 1 388 125 | -100 |
The Itera Consulting Group purchased 1.1 million own shares in 2009.
16 February 2010
Interim Report
ITERACONSULTING GROUP
Key Figures
| | 2009
1-12 | 2008
1-12 | change
% | 2009
10-12 | 2008
10-12 | change
% |
| --- | --- | --- | --- | --- | --- | --- |
| Per share, NOK | | | | | | |
| Earnings per share^{1)} | 0.24 | 0.40 | -41 | 0.05 | 0.11 | -55 |
| Fully diluted earnings per share^{2)} | 0.24 | 0.40 | -41 | 0.05 | 0.11 | -54 |
| EBITDA per share^{3)} | 0.48 | 0.67 | -29 | 0.10 | 0.17 | -40 |
| Equity per share^{4)} | 0.99 | 1.02 | -3 | 0.99 | 1.02 | -3 |
| Equity ratio, % | 49.5 | 48.8 | 2 | 49.5 | 48.8 | 2 |
| Personnel | | | | | | |
| Number of employees at end of period | 370 | 391 | -5 | 370 | 391 | -5 |
| Average number of employees | 381 | 381 | 0 | 377 | 387 | -3 |
| Per employee, NOK 1000 | | | | | | |
| Sales revenue per employee | 1 080 | 1 178 | -8 | 264 | 302 | -13 |
| Net sales per employee | 904 | 981 | -8 | 224 | 256 | -13 |
| Personnel expenses per employee | 707 | 718 | -2 | 173 | 190 | -9 |
| Other operating exp. per employee | 93 | 115 | -19 | 28 | 28 | -2 |
| EBITDA per employee | 104 | 148 | -30 | 23 | 38 | -40 |
| EBIT per employee | 70 | 116 | -40 | 15 | 29 | -51 |
All key operational figures are down reflecting the fact of lower prices and lower utilization rate in 2009 compared to 2008.
16 February 2010
Interim Report
ITERACONSULTING GROUP
Dividend
- The Board of Directors is proposing a dividend of NOK 0.20 per share
- The Annual General Meeting will take place on the 29th April 2010
The Board of Directors is proposing a dividend of NOK 0.20 per share.
16 February 2010
Interim Report
16
ITERACONSULTING GROUP
The Focused ONE Billion Company
Next Generation Digital Solutions for Web-centric Businesses and Knowledge Workers
16 February 2010
Interim Report
ITERACONSULTING GROUP
New Structure – The Little Big Company
The group aggregator of large project deliverables, full-life cycle scope and seamless nearshoring
OBJECTWARE
The leading provider of agile enterprise application development of next generation digital solutions
itera COLLABORATION
The leading provider of next generation collaborative solutions, business intelligence and portals.
16 February 2010
Interim Report
ITERACONSULTING GROUP
Anders H. Lier – CEO Itera Consulting
itera CONSULTING
OBJECTWARE
itera
COLLABORATION
- Vice President at Capgemini Norway
- 10+ years experience from management and sales roles at Capgemini
- MBA in Strategy and Bachelor in Economics
As CEO for Itera Consulting from 1st of March Anders H. Lier will drive the group towards larger engagements and full-life cycle deliverables.
16 February 2010
Interim Report
ITERACONSULTING GROUP
Brand Architecture
SOFTWARE AS A SERVICE
16 February 2010
Interim Report
ITERACONSULTING GROUP
Brand Architecture - Example
16 February 2010
Interim Report
21
ITERACONSULTING GROUP
New Profile
itera
CONSULTING
KISS
Keep It Simple Stupid
OBJECTWARE
16 February 2010
Interim Report
ITERACONSULTING GROUP
Structural Improvements 2009
- World-class Seamless Nearshoring capability
- Itera Networks as one Pan-Nordic hosting company
- Itera Gazette as leading digital communication company
- Itera Consulting as the aggregator for large deliverables
- Fostering the ITERA brand in all countries
- Increasing management capacity for growth
The Focused ONE Billion Company
16 February 2010
Interim Report
23
Nordea
ITERACONSULTING GROUP
Strong Deal Flow in Q4 2009 and YTD 2010
- Framework agreements, deals and subscriptions for 50+ MNOK
BanOsoft
metronome
Mekonomen
Oslo kommune
DEPARTEMENTENES
SERVICEENTER
The Itera Consulting Group is increasing its footprint in the public sector.
16 February 2010
Interim Report
ITERACONSULTING GROUP
Gartner: Prepare for a Return to Business Growth
New is the time for IT leaders to prepare for a return to business growth ... And we do the same for ourselves.
16 February 2010
Interim Report
ITERACONSULTING GROUP
Outlook 2010
- A normalized macroeconomic environment in 2010 should support a return to modest growth in IT spending
- Recruitment will resume in Sweden and Norway, but awaiting a stabilized market situation in Denmark
- Scaling up our offshoring capability in Ukraine will continue to ensure future competitiveness
- The Itera Consulting Group does not give any forecasts
The Itera Consulting Group will continue to prioritize quality, profitability and growth in that order.
16 February 2010
Interim Report
26
16 February 2010
Interim Report
27
Q & A
www.iteraconsulting.com
ITERACONSULTING
GROUP
Top 20 Shareholders
Name: ITERA CONSULTING GROUP ASA
Security type: AK
Date: 15.02.2010
| Holding | Percentage | Name | Account type | Citizenship |
|---|---|---|---|---|
| 15,718,298 | 18.42 | ARNE MJØS INVEST AS | NOR | |
| 3,053,000 | 3.58 | DELPHI NORGE JPMORGAN EUROPE LTD, | NOR | |
| 2,850,000 | 3.34 | DNB NOR SMB VPF | NOR | |
| 2,810,000 | 3.29 | PEDERSEN OLAV WERNER | NOR | |
| 2,750,000 | 3.22 | EIKESTAD A/S C/O PARTNER REVISJON | NOR | |
| 2,436,500 | 2.86 | STOREBRAND LIVSFORSI P980, AKSJEFONDET | NOR | |
| 2,400,000 | 2.81 | RBC DEXIA INVESTOR S S/A LUX-NON-RESIDENT NOM | LUX | |
| 2,200,000 | 2.58 | JØSYRA INVEST AS | NOR | |
| 2,084,996 | 2.44 | ITERA CONSULTING GRO | NOR | |
| 2,031,588 | 2.38 | MARXPIST INVEST AS | NOR | |
| 1,632,000 | 1.91 | BRØDRENE JOHANSSEN H | NOR | |
| 1,410,000 | 1.65 | BOINVESTERING AS | NOR | |
| 1,028,200 | 1.20 | STOREBRAND VEKST JPMORGAN EUROPE LTD, | NOR | |
| 902,700 | 1.06 | STOREBRAND NORGE I JPMORGAN EUROPE LTD, | NOR | |
| 724,000 | 0.85 | AANESTAD PANAGRI AS | NOR | |
| 697,700 | 0.82 | STOREBRAND NORGE H JPMORGAN EUROPE LTD, | NOR | |
| 694,888 | 0.81 | OBJECTWARE AS | NOR | |
| 600,000 | 0.70 | ULLALAND MALVIN | NOR | |
| 580,164 | 0.68 | DANSKE BANK A/S 3887 OPERATIONS SEC. | NOM | DNK |
| 579,000 | 0.68 | BUANES ASBJØRN JOHN | NOR |
47,183,034 55.28
16 February 2010
Interim Report
28
ITERACONSULTING GROUP
HEADQUARTER
Itera Consulting Group ASA
Sognsveien 75 z
P. O. Box 3834 Ullevål Stadion
N-0805 OSLO
Tel. +47 23 00 76 50
Fax +47 23 00 76 60
www.iteraconsulting.com
CONTACT
Arne Mjøs, CEO
Tel. +47 23 00 76 50
Mob. +47 905 23 172
[email protected]
Frank Martinsen, CFO
Tel. +47 23 00 76 50
Mob. +47 913 02 982
[email protected]
16 February 2010
Interim Report
29