EVRY ASA. CFO Henrik Schibler

Transcription

1 EVRY ASA CFO Henrik Schibler

2 Agenda Introduction to EVRY EVRY Consulting/Applications and Financial Services Financials 2

3 Introduction to EVRY

4 EVRY at glance # 1 Norway # 4 Sweden # 1 Financial Services in the Nordics 48 local offices in the Nordics Offices in 9 countries Ca. 8,500employees Revenue of NOK bn. Order backlog NOK bn. Serving customers in public and private sector Market share IT Services in Norway +10,000 customers 25% Leading vertical expertise Financial services, local government, public sector, healthcare, insurance Global Delivery Ukraine Latvia India 4 1) OPERATING REVENUE ) BACKLOG AT DECEMBER 31, 2017

5 EVRY is omnipresent in the Nordics More than 5 million people in the Nordics use the EVRY services daily when they receive a digital notification for a package delivery from the post pass through a toll road station OK! 1 out of 4 in Norway do a mobile contract activation Critical infrastructure for Nordic companies operated by EVRY 42 offices across the Nordics serving around 10k customers Unique position within banking & finance sector Unparalleled position within the Nordic public sector More than 100k employees in the Swedish healthcare sector use EVRY s solutions Driving digitalisation in the Nordic region Financial Services 10 million 133 million 7.6 billion 2.3 billion 70% in Norway pick up an e-prescription at the pharmacy buy a train ticket with a mobile app configure a new Volvo XC 60 online use mobile banking services Banking accounts Card authorizations per month Web requests to EVRY s internet/mobile banking every year Card fraud prevention transactions in 2015 enables the connected car solutions for Tesla 5

6 Major achievements over the last years Positive organic growth Improved utilisation High customer satisfaction Stable double digit EBITA performance Introduced new partnerships Strong performance culture Creating digital advantage for tomorrow s leaders High employee satisfaction Increased order backlog High stability in infrastructure Invested in new technologies 6

7 EVRY s is creating digital advantages through a clear and simple strategy FOCUS ON VERTICALS PROXIMITY TO CUSTOMERS Drive business towards value adding industryspecific solutions SERVICE EXCELLENCE DIGITAL CONSULTING SERVICES DIGITAL PLATFORM SERVICES Invest in close partnerships Creating Digital Advantage for tomorrow s leaders LEVERAGING STRATEGIC PARTNERS 7

8 Outsourced the core infrastructure services and established DPS for driving scale, efficiency and capabilities throughout the Nordics Critical mass Credible and sustainable domain and industry knowledge Attractiveness and relevance to our customers and partners WHY Economies of scale Increased agility and competitiveness Leverage partnerships HOW Market Delivery Understand our customers, and their customers through deeper industry knowledge Service integration with industry specific solutions Cross company service lines Cross company consulting practices 8 DPS = DIGITAL PLATFORM SERVICES

9 Delivering industry-specific solutions and software through centers of excellence Financial Services Public & Health Retail & Logistics Industries & Services SME Consulting Services EVRY Strategic Design Lab Application Services Digital Platform Services Fulfilment Services ~10k customers with an attractive market position among larger enterprises and SME s in the Nordics 9

10 EVRY seeks to have a customer-centric and partner-driven approach, and corporate culture that supports innovation and collaboration SHAPE THE FUTURE TODAY in order to direct this approach, the company s employees follows the 3 Cs : (1) Customer-centricity, (2) Collaboration and (3) Culture Invested in Strategic Design Lab: young talents face digital questions related to real customer challenges Performance-based culture based on creation of greater customer value and better commercial results Invested in 600 new talents in new areas of expertise Blockchain, AI, AR, robotisation, machine learning, IoT Investments in cognitive solutions now over 60 dedicated staff Investments in concept development RPA to e.g. automate customer service and accounting tasks Invested in AR and VR and already won number of contracts 75 Customer satisfaction Number of employees 81.6 Employee satisfaction 28% Female employees in the Nordic region 10 AR: AUGMENTED REALITY, VR: VIRTUAL REALITY, IOT: INTERNET OF THINGS, RPA: ROBOTIC, PROCESS AUTOMATION

11 EVRY Consulting/Applications and Financial Services

12 For being relevant for customers, focus on next generation technology and creating business value are critical success factors IT Services: Customer demand evolution Winning formula Pre Business value: deep industry, customer and customer s customers understanding required Risk sharing and co-creation: think big, start small and immediately quick decision making Complex infrastructure Monopolistic software giants Legacy mess IT services was: clean up the mess Cloud based infrastructure Cloud based software players conquer the world API ecosystem IT services was: reduce non standard and combine old and new world IT is core in any business IT will make a difference Success factor will be business value IT services: will need to put together the complex puzzle and create unique business value Agile projects: changing requirements will also make contracts reflect joint client/consultant goals Deliver flexible platforms to solve the puzzle problem business gliding, automation etc Access to emerging technology and skills requires digital talents and strategic partnerships to expand delivery options and fill gaps 12

13 Digital advantage is a business management priority, where consultants with deep industry knowledge is a prerequisite for being attractive 3x growth 1 in business-driven investment in IT in the Nordics KEY NEEDS AREAS FOR BUSINESS MANAGEMENT Application of emerging technology is receiving increased attention from business management Partnerships both with suppliers and with customers are the main driver for successful business development Digital Consulting and industry knowledge of increased importance to enable Digital Advantage + 14,6% 1 growth in consulting within emerging tech/ digital + 1,0% 1 growth in consulting within mature IT-services Customer insight & experience Automation & RPA Cognitive solutions Data management & analytics 13 1) RADAR ECOSYSTEMS SPECIALISTS STATE OF THE REGION 2018 OUTLOOK

14 The Nordic leading technology Consulting and AM business Undisputed market leader in Norway and on the podium in a fragmented Swedish market More than 2,000 dedicated consultants cross boarder with strong brand perception Implementing vertical focus and a go to market model with focus on customer centricity Has both internally and through the leverage of the partner ecosystem, the resources and knowledge to handle complex projects for the clients Leverage on the unique mix of regional presence and partnerships with global scale End-to end provider and tailor-made solutions Strong innovation focus in close collaboration with Strategic Design Lab and partners New competence through acquisition of NetRelations and Findwise Leveraging on the ownership with BEKK through bundled delivery between EVRY and BEKK especially within the public space Strong position within the Public and Health sector cross boarders High attention on attractive opportunities within the retail sector, industrial space, and insurance 14

15 EVRY is Nordic champion within Financial Services where the industry dynamics are changing rapidly Continued focus on regulation Investments in automation and advanced data analytics Legacy combined with emerging tech International competition & opportunities New entrants challenging incumbents Cross industry shift & payments PSD2/Open APIs (Open banking) Customer service and back office automation Rip and replace not an feasible option Bank collaboration Global big-tech s Mobile payments Anti Money Laundering Flexible service development Modernizing core banking systems International opportunities for payment solutions Fintech startups and niche players Retail convergence into financial services Established players New players 15

16 Bank Internal Services Bank Customer Services A modular banking platform seamlessly spans across front, middle and back office functions End-to-end banking capabilities Best solution in the market today Customer Centric Advising & Sales Daily Banking Self-Service Channels ATM IP across the whole solution portfolio Card Loans & Finance Payments Savings Issuing Loans Payments Deposits Acquiring Corporate Lending Cash Management Savings Card Production Finance Foreign Exchange Investment Complete Retail Bank concept including core banking and payments Modular platform Multi-tenant delivery model Switching BI & Reporting Enterprise Centric Information Management Master Data Management Loan Servicing Risk Management Enterprise Content Management Financial Messaging Arrears Management Enterprise Resource Planning Reporting Workspace Compatible with third party software Digital services offering of highest quality Thought leader driving the standardisation in the Nordic market (BIAN) Security Authentication Electronic Signature Card Security Fraud Prevention c. 77% of Revenue from Solutions where EVRY owns the IP 16 FOOTER Areas with 3 rd party element

17 Financials

18 The financial improvements are the proof points of a successful journey over the last years EVRY Group NORWAY SWEDEN FINANCIAL SERVICES Q FY 2017 Q FY 2017 Q FY 2017 Q FY 2017 REVENUE NOKm ORGANIC GROWTH 1 0.5% 2.4% -2,8% 1.0% -3.8% 0.9% 4.7% 2.9% EBITA 2 NOKm EBITA MARGIN % 12.5% 8.0% 10.5% 7.7% 9.8% 11.2% 13.4% CASH CONVERSION FREE CASH FLOW ADJ. EPS BACKLOG 91.6% LTM Dec NOK 913m FY 2017 NOK 2.82 FY 2017 NOK 18.0bn 31 Dec ) ADJUSTED FOR CURRENCY EFFECTS, ACQUISITIONS AND DIVESTMENTS 2) BEFORE OTHER INCOME AND EXPENSES

19 Positive organic growth and increased profitability over the last years Revenue and organic growth LTM EBITA 1 Organic growth Revenue % LTM margin LTM EBITA 4.8% -1.1% 1.9% 3.7% 0.5% 2.4% 4.7% 10.8% 11.4% 11.4% 11.9% 12.5% 12.2% Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 FY 2017 FY 2016 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q ) BEFORE OTHER INCOME AND EXPENSES

20 Concluding remarks At the forefront of digital transformation Driving scale and efficiency through partnerships Focus on verticals, changed employee mix and developed right competence Focus on customer centricity and customers needs Improved financials with further revenue and margin potential 20 A

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22 Disclaimer These materials may contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact including, without limitation, those regarding the Company s financial position, business strategy, plans and objectives of management for future operations is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company s present and future business strategies and the environment in which the Company will operate in the future. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialise or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors, including, among others competition from Nordic and international companies in the markets in which the Company operates, changes in the demand for IT services, in particular in the Nordic market, changes in international, national and local economic, political, business, industry and tax conditions, the Company's ability to realise backlog as operating revenue, the Company's ability to correctly assess costs, pricing and other terms of its contracts, the Company's ability to manage an increasingly complex business, political and administrative decisions that may affect the Company's public customer group contracts, the Company's ability to retain or replace key personnel and manage employee turnover and other labour costs, unplanned events affecting the Group's operations or equipment, the Company's ability to grow the business organically, changes regarding the Company's brand reputation and brand image, fluctuations in the price of goods, the value of the NOK and exchange and interest rates, the Company's ability to manage its international operations, changes in the legal and regulatory environment and in the Company's compliance with laws and regulations, increases to the Company's effective tax rate or other harm to its business as a result of changes in tax laws, changes in the Company's business strategy, development and investment plans, other factors referenced in this report and the Company's success in identifying other risks to its business and managing the risks of the aforementioned factors. Should one or more of these risks or uncertainties materialise, or should any underlying estimates or assumptions prove to be inappropriate or incorrect, our actual financial condition, cash flows or results of operations could differ materially from what is expressed or implied herein. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. This presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. The contents of this presentation have not been independently verified. The Company's securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act ), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S of the US Securities Act. This presentation should not form the basis of any investment decision. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such company and the nature of the securities. 22 FOOTER

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