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NRC Group Investor Presentation 2010
3693_rns_2010-10-28_d552619e-658d-4797-b697-5474be5af934.pdf
Investor Presentation
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BLOM
IMAGING THE WORLD
BLOM ASA
3Q 2010 RESULTS
Presentation by CEO Dirk Blaauw
28th of October 2010
Thon Hotel Vika Atrium, Oslo
Disclaimer
BLOM
IMAGING THE WORLD
Forward Looking Statements
This presentation contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts are forward-looking. You should not place undue reliance on these forward-looking statements for many reasons.
These forward-looking statements reflect current views with respect to future events and are by their nature subject to significant risk and uncertainties because they relate to events and depend on circumstances that will occur in future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity or performance will meet these expectations. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this presentation, either to conform them to actual results or to changes in our expectations.
Agenda Q3 Presentation
BLOM
IMAGING THE WORLD
- Key figures
- Financial Highlights
- Operational Highlights
- Blom and Pictometry
- Strategy and Outlook
- Q & A
Key Figures – Profit & Loss 3Q 2010
BLOM
IMAGING THE WORLD
| NOK million (IFRS) | Q3 2010 | Q3 2009 |
|---|---|---|
| Revenues | 164.7 | 202.8 |
| EBITDA | 33.1 | 25.8 |
| EBITDA margin (%) | 20.1 % | 12.7 % |
| EBIT | 10.3 | 3.6 |
| EBT | 3.1 | - 4.3 |
Key Figures – Profit & Loss per 30.09.10
BLOM
IMAGING THE WORLD
Q3 Segments & Margins
BLOM
IMAGING THE WORLD
| (NOK million) | Q3 2010 | Q3 2009 | Per 30.09.10 | Per 30.09.09 |
|---|---|---|---|---|
| Revenues | ||||
| BIS | 54.7 | 34.1 | 98.3 | 82.6 |
| BGES | 110.0 | 168.7 | 372.3 | 495.8 |
| Total revenues | 164.7 | 202.8 | 470.6 | 577.4 |
| EBITDA margin | ||||
| BIS | 70.2 % | 44.5 % | 50.2 % | 27.6 % |
| BGES | 2.2 % | 10.6 % | 4.9 % | 14.5 % |
| Total EBITDA margin | 20.1 % | 12.7 % | 8.7 % | 12.0 % |
| EBIT margin | ||||
| BIS | 48.0 % | 18.5 % | 14.7 % | - 2.3 % |
| BGES | - 7.5 % | 2.7 % | - 3.2 % | 6.5 % |
| Total EBIT margin | 6.2 % | 1.8 % | - 5.3 % | 0.9 % |
Q3 Financial Analysis
BLOM
IMAGING THE WORLD
- Challenging macro environment has temporarily impacted many markets in Western Europe negatively
- Revenue per 30.09.10 totals MNOK 471, compared to MNOK 577 per 30.09.09
- Revenue decline YTD comes from BGES which is mainly caused by:
- Currency rate changes 30 MNOK
- Spanish market 50 MNOK
- Other markets 40 MNOK
- BIS revenue in 2010 influenced by quarterly fluctuations
- Established more sustainable basis for BIS-revenue:
- Navigation-partnerships
- Build up of own sales force
- Corporate accounts
BLOM
IMAGING THE WORLD
Key Figures – Balance Sheet
Q3 Financial Analysis continues...
BLOM
IMAGING THE WORLD
- Continued focus on reduction of Work In Progress and Account Receivable
- WIP & AR down in Q3
- Still room for improvements
- Improved contract terms
- Higher BIS share of total revenues will drive total DSO down
| (NOK million) | |||||||
|---|---|---|---|---|---|---|---|
| Balance sheet values | Q1 09 | Q2 09 | Q3 09 | Q4 09 | Q1 10 | Q2 10 | Q3 10 |
| Work in progress / inventory | 292 | 363 | 416 | 264 | 253 | 284 | 280 |
| Accounts receivables | 237 | 218 | 216 | 240 | 171 | 149 | 125 |
| Total | 529 | 581 | 663 | 504 | 424 | 433 | 405 |
- Investments level will be reduced in 2010
- Expected further reduction compared to 2009
Q3 Operational Highlights
BLOM
IMAGING THE WORLD
- Cost-cutting initiatives
- More comprehensive restructure of organisation implemented
- Move of production to low-cost production facilities
- Continued head-count to optimize resources
- Strengthened sales force
- Market and sales initiatives:
Macro-economic slow-down in Western Europe
Focus on increased market potential in Eastern Europe
Slow-down in Spanish market
Shift of focus to Latin-American countries
Cost-cutting Summary
BLOM
IMAGING THE WORLD
- On annualized basis Blom has reduced the cost base with approximately MNOK 60 :
| (in NOK million) | Payroll (# of people) | Payroll (MNOK) | Non-Payroll (MNOK) |
|---|---|---|---|
| Completed | 104 | 25 | 6 |
| To be executed | 81 | 15 | 14 |
| Total | 185 | 40 | 20 |
- Further cost initiatives will be evaluated on a running basis
Q3 Markets
BLOM
IMAGING THE WORLD
BGES
Provides geo engineering services throughout Europe based on the most comprehensive resource base available
- Strong knowledge base with own sales force and strong partnerships & alliances provide:
- Market penetration
- Proven capabilities of handling large scale projects
-
Utilization of State-of-the-art technology
-
Maintain strong position within:
- Public sector
- Infrastructure
- Environment
- Security / Defense
BIS
Provides solutions and applications derived from Blom’s geo engineering server and capabilities
- Unique online Geoserver capabilities
- Multiple sales from same data
- Provides customer online-access to comprehensive oblique images and 3D models
- Market penetration through own sales force and long-term partnerships & alliances
- Microsoft, Tele Atlas / TomTom, Infoterra, Ndrive
Blom and Pictometry
BLOM
IMAGING THE WORLD
- Blom entered into a 10-year license agreement with Pictometry
- Blom har built an extensive European database
- Pictometry claims Blom is in breach of contract and has terminated contract
-
Blom claims unlawful termination of contract
-
Blom initiatives
- Initiated all required legal actions
-
Resolve issue through dialogue
-
Business as usual
- Continue service of existing and new customers from BlomURBEX™
-
Partners - continue to develop new products and applications
-
Blom will continue to develop BIS products and services
Going Forward
BLOM
IMAGING THE WORLD
- Improved base for future growth through:
- Reduced cost-base
- Improved sales and marketing capabilities
- Strengthened focus on growing emerging markets
- Enhance sales through partners & alliances
- Broadening product range and market opportunities through Satellite industry
- Outlook
- Satisfactory order backlog
- Impact from cost-cutting initiatives
→ Expected improved margins in 2011
BLOM
IMAGING THE WORLD
Thank you!
Q & A
BLOM
IMAGING THE WORLD
Appendix
Profit & Loss
BLOM
IMAGING THE WORLD
| Q3 2010 | Q3 2009 | (in NOK million) | 30.09.2010 | 30.09.2009 | 31.12.2009 |
|---|---|---|---|---|---|
| 164,7 | 202,8 | Operating revenues | 470,6 | 577,4 | 736,9 |
| 131,6 | 177,0 | Operating costs | 429,9 | 508,0 | 644,6 |
| 33,1 | 25,8 | EBITDA | 40,7 | 69,4 | 92,3 |
| 22,9 | 22,2 | Depreciation and amortisation | 65,5 | 64,4 | 146,1 |
| 10,3 | 3,6 | EBIT | -24,8 | 5,0 | -53,8 |
| 0,9 | 0,1 | Profit from associated companies | 1,7 | -0,6 | -0,6 |
| -8,1 | -8,0 | Net financial items | -42,0 | -23,8 | -39,6 |
| 3,1 | -4,4 | Profit before tax | -65,1 | -19,5 | -94,0 |
| -0,6 | 1,2 | Taxation | 18,0 | 5,5 | 10,9 |
| 2,5 | -3,2 | Net profit for the period | -47,0 | -14,0 | -83,0 |
Balance Sheet
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IMAGING THE WORLD
| ASSETS (In NOK million) | 30.09.2010 | 30.09.2009 | 31.12.2009 |
|---|---|---|---|
| Intangible assets | 366,7 | 403,4 | 357,7 |
| Machinery, fixtures, vehicles etc. | 287,5 | 301,8 | 295,8 |
| Fixed assets investments | 71,9 | 55,7 | 55,5 |
| Total fixed assets | 726,1 | 761,0 | 709,0 |
| Stocks and work in progress | 279,9 | 375,0 | 264,1 |
| Current receivables | 178,3 | 246,5 | 275,7 |
| Cash and cash equivalents | 89,4 | 136,9 | 164,9 |
| Total current assets | 547,5 | 758,4 | 704,6 |
| TOTAL ASSETS | 1 273,6 | 1 519,3 | 1 413,6 |
Balance Sheet
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IMAGING THE WORLD
| EQUITY AND LIABILITIES (in NOK million) | 30.09.2010 | 30.09.2009 | 31.12.2009 |
|---|---|---|---|
| Nominal share capital | 4,2 | 4,2 | 4,2 |
| Other reserves | 626,8 | 768,1 | 693,4 |
| Total equity | 631,0 | 772,3 | 697,5 |
| Total long term liabilities | 385,7 | 400,1 | 389,3 |
| Bank overdraft | 41,6 | 86,2 | 89,8 |
| Other interestbearing short term liab. | 35,6 | 34,2 | 31,0 |
| Interestbearing short term liab. | 77,2 | 120,4 | 120,9 |
| Other current liabilities | 179,7 | 226,5 | 205,9 |
| Total current liabilities | 257,0 | 346,9 | 326,7 |
| TOTAL EQUITY AND LIABILITIES | 1 273,6 | 1 519,3 | 1 413,6 |
Cash Flow
BLOM
IMAGING THE WORLD
| Q3 2010 | Q3 2009 | (In NOK million) | 30.09.2010 | 30.09.2009 |
|---|---|---|---|---|
| 25,9 | 17,9 | Cash Flow from Operating Activites | 0,5 | 44,9 |
| 24,2 | 1,6 | Change in Receivables from Customers | 90,6 | 136,6 |
| 3,7 | -53,1 | Change in Stocks and Work in Progress | -15,8 | -135,9 |
| -35,6 | 3,8 | Change in Supplier Debt | -13,5 | 14,4 |
| 6,0 | -10,5 | Change in Other Accruals | -10,1 | -45,1 |
| -1,8 | -58,2 | Net Cash Flow from Working Capital Changes | 51,2 | -30,1 |
| -13,1 | -15,8 | Net Cash Flow from Investments Activites | -41,7 | -51,6 |
| -46,5 | 120,6 | Net Cash Flow from Financial Activities | -85,5 | 97,2 |
| -35,5 | 64,5 | Net Change in Cash and Cash Equivalents | -75,5 | 60,4 |
| 124,9 | 72,4 | Cash and Cash Equivalents beginning of Period | 164,9 | 76,5 |
| 89,4 | 136,9 | Cash and Cash Equivalents end of Period | 89,4 | 136,9 |