EDB pursuing Nordic leadership

Transcription

1 EDB pursuing Nordic leadership

2 An increasingly important Nordic IT partner Norway: Largest IT company % market share in IT-operations Nordic: IT operations: among top three Distributed operating services partner: number one Software solutions and services to financial institutions: leading-edge competencies and critical mass Global: Leading software supplier to the global telecom industry (revenue assurance) 2,600 employees, 2,430 in Norway Operations in 7 countries 2003 revenue: NOK 4.3 billion Market cap at 30.04: NOK 4.0 billion

3 Pursuing Nordic leadership New EDB - positioned for growth The Nordic market offers considerable potential Growth through improvement programs and structural moves

4 From portfolio based to one integrated company Business Consulting EDB Bank & Finance EDB IT Operations EDB Telecom TIBE (ad agency) Fellesdata Teamco Telesciences (mediation) US operations Dolphin (call centres) Novit (consolidated in FD) Unigrid (Sweden) Norwegian operations Stradec Infovention (Sweden) PDS Incatel (network mngt) General consulting SysCon Dialogue (print/mail) 4tel Resource consulting Oracle / SAP competencies MaxWare (Benelux) Ster (Baltic) Consulting services Customer Care & Billing

5 From portfolio based to one integrated company Business Consulting EDB Bank & Finance EDB IT Operations EDB Telecom TIBE (ad agency) Dolphin (call centres) Fellesdata Novit (consolidated in FD) Teamco Unigrid (Sweden) Telesciences (mediation) US operations Norwegian operations Stradec Infovention (Sweden) PDS Incatel (network mngt) General consulting SysCon Dialogue (print/mail) 4tel Resource consulting Oracle / SAP competencies MaxWare (Benelux) Consulting services Customer Care & Billing Ster (Baltic) Oracle/ SAP competencies transferred from BC

6 The new EDB restructured and profitable EDB Business Partner ASA EDB Bank & Finance EDB IT Operations EDB Telecom 2003 Revenue: NOK 803 mill 675 employees 2003 Revenue: NOK mill 1,197 employees 2003 Revenue: NOK 611 m 621 employees 19% 65% 16% Revenue share 2003 Revenue share 2003 Revenue share 2003

7 Focus area 1 Efficient operations New management model and mode of operations Common vision and values to ensure alignment Consolidation of staff and support functions Cost reduction program introduced Target: NOK 350 mill accumulated Key areas; occupancy, software, purchasing, internal ICT Continuous cost control focus

8 Focus area 2 Customer and market focus Leveraging one brand Sales, market intelligence and marketing functions strengthened Extensive sales and marketing training program Management Development Program across Business Areas Business Development Unit established New CRM-system

9 Position 2004 ready for profitable growth Concentration on core competencies Stronger financial position returned to profitability Solid customer base long-term contracts Customer and market focus Efficiency through one company, one brand 12 % 10 % 8 % 6 % 4 % 2 % 0 % -2 % -4 % -6 % EBITA-margin EDB Business Partner Q1 Q2 Q3 Q

10 Pursuing Nordic leadership New EDB - positioned for growth The Nordic market offers considerable potential Growth through improvement programs and structural moves

11 Nordic IT market returns to growth External IT-spending - expected growth (%) Nordic IT market geographical split (%) 8 % 24 % 6 % 4 % 39 % 2 % 0 % -2 % -4 % -6 % Nordic 19 % 18 % Denmark Finland Norway Sweden Source: IDC/EDB, 2004

12 Outsourcing potential NOK 80 bn. market Software Hardware 15 Support Services Project Services Outsourcing Finland 17% Sweden 41% Norway 20% Potential market 2 x NOK 40 bn Share in % Denmark 22% 2004 Nordic external IT-spending: NOK 200 bn NOK 40 bn Source: IDC/EDB, 2004

13 Significant growth potential in other verticals External IT-spending by Industry 16 % EDB Revenue by Industry 12 % 9 % 29 % 59 % 75 % Bank/Finance Telecom Other Bank/Finance Telecom Other

14 Nordic leadership in IT operations NOK m IBM Tieto Enator EDB CSC WMdata HP Ergo Group DM Data EDS Nordic IT outsourcing revenue* 2003, selected major players. Source: IDC / EDB, 2004 *Infrastructure and applications ops.

15 Extensive range of products and services Bank / Finance Telecom Distr. / Industry Public sector Business processes (BPO) BP BP BP Applications development / BP / BP / BP Applications administration & maintenance Applications operations & value-added services Operation & maintenance of systems software Infrastructure operations Infrastructure management & maintenance

16 With a comprehensive customer portfolio

17 Pursuing Nordic leadership New EDB - positioned for growth The Nordic market offers considerable potential Growth through improvement programs and structural moves

18 A vision for the future Leading Nordic based on a vision of "Performance-driven innovation" Profitable growth through acquisitions and active partnership Delivering high value added services in verticals with high potential Taking a strategic role in expected consolidation of Nordic market

19 Bank & Finance Pan Nordic growth Customer demand and structural changes creating a new generation of ITsolutions Competitive advantage through unique skills Rejuvenated and refocused for Nordic expansion Growth through acquisitions and 3rd party alliances Bank/ Finance

20 Telecom Restructuring after the Accenture-deal Two main product areas: Mediation Network Inventory Management Systems Restructuring according to new business plan New management in Norway, US and EMEA On-going global consolidation Attractive customer and product portfolio Telecom

21 Moving forward with two business lines Telecom Product areas What we offer 2003 Revenue Function to decrease costs: Mediation NIMS One system for all Mediation requirements Offload downstream applications Operations control Automatic collection and verification of incoming data Accessibility to information Logistic system for network operators: Stock supply information Manages network resources and capacity Essential for time-to-customer deliveries Modul-based system, flexible for customers 115 mill NOK 122 mill NOK

22 Significant growth potential in other verticals Major outsourcing opportunities DnBNOR and Telenor contracts creating scalability and market capability Mid-size companies representing multibillion market Local presence represents substantial competitive advantage External partnership Telenor, Accenture, SAP and Oracle Distr. / Industry/ Public

23 Taking advantage of partnership opportunities EDB is preferred operating partner for Telenor in all Nordic markets Strategic marketing and supply collaboration in the Nordic market Targeting new customer segments actively in all Nordic countries EDB is preferred operating partner for Accenture in the Nordic market Dedicated resources and common objectives established New opportunities in pipeline as result of partnership

24 Strategic direction established for new EDB Restructured and refocused Improved profitability with strong cash flow Financial position strengthened Improved backlog Growing organically and through M&A-activities Partnerships established Regained confidence from key customers