CMD. Capital Markets Day Kenneth Ragnvaldsen, CEO June 03, 2013, Oslo

Transcription

1 CMD Capital Markets Day 2013 Kenneth Ragnvaldsen, CEO June 03, 2013, Oslo

2 AGENDA CAPITAL MARKETS DAY 2013 TIME PRESENTATION SPEAKER THE MARITIME KNOWLEDGE HUB Torger Reve DATA RESPONS STRATEGY Kenneth Ragnvaldsen Q&A Break PRODUCTS & SOLUTIONS Jørn E. Toppe SERVICES Ivar A. Sehm Q&A Break FINANCIALS Rune Wahl AMBITIONS Kenneth Ragnvaldsen Q&A End

3 OBJECTIVES CAPITAL MARKETS DAY STATUS In-depth understanding of DAT today Main strategy and focus MARKET Main markets and key customers Growth drivers and position AMBITIONS Priorities going forward Financial targets 3

4 THE MARITIME/OFFSHORE KNOWLEDGE HUB Torger Reve, BI June 03, 2013, Oslo 4

5 DATA RESPONS STRATEGY Kenneth Ragnvaldsen, CEO June 03, 2013, Oslo

6 COMPANY OVERVIEW

7 KEY FIGURES 2012 EMPLOYEES REVENUE EBITDA 35,3 (4 %) Q1 REVENUE EBITDA 11,0 ( 6 %)

8 REVENUE Q Products & Solut. 50 % Sweden 43 % REVENUE DISTRIBUTION Denmark 3 % Germany 7 % Services 50 % Norway 47 % TOP CUSTOMERS 5 largest 32 % 10 largest 48 % Other 68 % Other 52 %

9 KEY FACTS DATA RESPONS Data Respons is a full-service, independent technology company and a leading player in the embedded solutions market. ESTABLISHED: VISION: A smarter solution starts from inside. OFFICES: Denmark(1), Germany(2), Norway(7), Sweden(5) & Taiwan(1). BUSINESS FORM: Public limited company, listed on the Oslo Stock Exchange (ticker: DAT). CERTIFICATIONS: ISO 9001:2008, ISO 14001:2004 AND OHSAS 18001:2007 NO. OF EMPLOYEES: 387

10 WE KNOW EMBEDDED SOLUTIONS CERTIFIED SOLUTIONS FOR WIRELESS MEDICAL APPLICATIONS MEASURING SYSTEMS FOR OIL AND GAS CONTROL SYSTEMS FOR NAVIGATING VESSELS REMOTE WEAPON STATIONS FOR GROUND FORCES

11 VISION

12 COMPLETE SOLUTION PROVIDER

13 LOCAL CLOSE TO THE CUSTOMER Vertical KNOWLEDGE and EXPERIENCE important. SPECIFICATION DEVELOPMENT DELIVERY NEW GENERATION

14 LEADING EMBEDDED SW/HW SPECIALISTS ACCESS TO LEADING EDGE COMPETENCE SPECIFICATION DEVELOPMENT DELIVERY NEW GENERATION

15 ASIA GLOBAL VALUE CHAIN ACCESS TO ASIA AND WORLD LEADING PARTNERS SPECIFICATION DEVELOPMENT DELIVERY NEW GENERATION

16 PARTNER NEW TECHNOLOGY & INNOVATION LONG TERM RELATIONSHIP SPECIFICATION DEVELOPMENT DELIVERY NEW GENERATION

17 BUSINESS AREAS

18 BUSINESS LINES PRODUCTS & SOLUTIONS SERVICES

19 BUSINESS LINES PRODUCTS & SOLUTIONS SERVICES

20 BUSINESS LINES PRODUCTS & SOLUTIONS SERVICES Local sales and marketing Centralized operations and industrialization services Reuse of platforms and solutions across the organization One global value chain and Asia presence Strong partner network with scalable production

21 BUSINESS LINES PRODUCTS & SOLUTIONS SERVICES

22 BUSINESS LINES PRODUCTS & SOLUTIONS SERVICES Local offices in industrial regions Specialist focus, technology driven Teams covering all parts of the development cycle Highly skilled engineers KPI s: Invoice time, Hourly rate Profit centers

23 BUSINESS LINES PRODUCTS & SOLUTIONS SERVICES SYNERGIES Go-to-market model Cross sales and marketing Full-service and complete supplier Technology and knowledge sharing

24 CHANGES LESSONS LEARNED 1 FROM A COUNTRY MANAGEMENT TO BUSINESS LINE STRUCTURE ONE COMPANY 2 LEAN AND HANDS ON MANAGEMENT WITH FOCUS ON PROFITABILITY 3 SPECIALIST FOCUS, CENTRALIZED OPERATIONS AND ONE GLOBAL VALUE CHAIN WITH SCALABILITY

25 MARKETS

26 MARKETS Telecom 21 % Automation 3 % Medical 4 % Oil services / maritime 28 % Transportation 16 % Other 15 % Defence 13 % Positive market climate in main markets, but lower activity in some sectors. Strong development in Oil service/maritime. Increasing demand for reliable, safe and robust solutions for tough environmental conditions. Still strong demand for engineers.

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28 GROWTH AREAS

29 KEY MARKETS Aligned market strategy across the company Vertical approach in attractive niches Reuse of platforms and technology Knowledge transfer

30 KEY CUSTOMERS Key account management Expand portfolio towards main customers Targeted new customer strategy

31 KEY TECHNOLOGY Complex and customized solutions Demanding environments Embedded solution development Safety critical and functional safety

32 KEY PEOPLE Highly skilled and motivated Attracting the best engineers A value based culture Total responsibility Performance Being generous Having fun

33 THE VERTICAL MARKET APPROACH

34 OIL SERVICES & MARITIME

35 GO TO MARKET MODEL MARKET & CUSTOMER SEGMENTATION KNOWLEDGE & EXPERIENCE Est LOCAL INSIDE THE HUB

36 WHY? MARITIME, OIL SERVICES & OFFSHORE Leading knowledge hub world wide (ref. Reve) High investments the next 5-10 years. Complex high-mix SOLUTIONS with challenging environmental demands Part of the technology and product development are in the early phase (example subsea) Low volumes and ongoing innovations in delivery projects (need for local competence) Strong financial capacity Have good traditions with outsourcing and partnerships

37 NOR-SHIPPING 2013

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39 SUMMARY MARKET SIZE Well established in main VERTICAL markets with great potentials like the MARITIME OFFSHORE knowledge hub LARGER CUSTOMERS Increasing numbers of + 20 MNOK Key Accounts and increasing numbers of GLOBAL COMPANIES as customers VISIBILITY Good momentum in services and RECORD HIGH ORDER BACKLOG in Products & Solutions 39

40 PRODUCTS & SOLUTIONS Jørn E Toppe, COO June 03, 2013, Oslo

41 PRODUCTS & SOLUTIONS KEY FIGURES 2012 REVENUE EBITDA 31,9 (7 %) 2012 EMPLOYEES 118 Q1 REVENUE 97, EBITDA 5,6 ( 6 %)

42 PRODUCTS & SOLUTIONS REVENUE Q REVENUE DISTRIBUTION Automat ion 5 % Telecom 15 % Transpor t 13 % Other 11 % Defence 9 % Norway 65 % Sweden 16 % Denmark 6 % Oil services / maritime 43 % Medical 4 % Germany 13 % TOP CUSTOMERS 5 largest 40 % 10 largest 60 % Other 60 % Other 40 %

43 PRODUCTS SOLUTIONS

44 NORDIC OPERATIONS On the basis of the specifications, prototypes are prepared and constructed in Taiwan. They are then sent for testing at Data Respons test laboratory: the Integration Centre at Skullerud in Oslo.

45 BRIDGE TO ASIA WHY ASIA? SPEED Local presence and strategic partnerships reduce the overall timeto-market. INNOVATION Access to the primary area for embedded technology in the world, highly skilled expertise and working with different industries drives our innovation. QUALITY High-level project management and quality assurance measures, tried-andtested industrial computer products and the expertise our customers need ensures top quality. COST IMPROVEMENTS Close and long-term relationships with our customers, partners and Nordic Operations Centre ensure cost savings and an Asian high-volume production set-up provides a better cost-benefit ratio.

46 THINK GLOBAL ACT LOCAL > Initial Initial partnerships partnerships with with leading leading Embedded/Industrial Embedded/Industrial Computer Computer providers providers 2008-> 2008-> Data Data Respons Respons representative representative office office in in Taipei Taipei 2012-> 2012-> Data Data Respons Respons Taiwan Taiwan registered registered company company Quality Quality team, team, Project Project Management, Management, Sourcing Sourcing and and Logistics. Logistics. More than 200 MNOK in yearly purchase of Asian produced products and engineering services More than 150 MNOK in yearly purchase of Asian produced products and engineering services

47 ASIA BUSINESS BASED ON Relations: Top-management relations to all partners. Our philosophy has been to set up normal and direct business with partners where Data Respons can be a long term, important customer. Technology: Commonly shared business/technology innovations with open cooperation on all levels. UN 10 principles: Follow the UN Global Compact and actively strives to promote the initiative s 10 basic principles in the area of human rights, labor, the environment and anti-corruption. ISO 9001:2008: Defined, documented and auditable company processes with rules for improvement.

48 ROUGH ENVIRONMENTS CUSTOM SPECIFICATION Physical size Interfaces Functionality Performance Power demands Regulations Standards Testing Production EXTREME CONDITIONS We don t take shortcuts. We stand by our solutions to do the job they were designed for and to withstand the influences and conditions they may be subjected to. Humidity Altitude Temperature Vibration Salt spray Shock EMC

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50 CASE HEXAGON

51 CASE LAERDAL MEDICAL

52 CASE FRAMO / 3PM

53 CASE KONGSBERG MARITIME

54 CASE ROLLS ROYCE MARINE

55 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 BACKLOG PRODUCTS & SOLUTIONS

56 SERVICES Ivar Sehm, Director R&D Services June 03, 2013, Oslo

57 SERVICES KEY FIGURES 2012 REVENUE EMPLOYEES EBITDA 12,5 (3 %) Q1 REVENUE 97, EBITDA 8,0 ( 8 %)

58 SERVICES REVENUE Q REVENUE DISTRIBUTION Automation 1 % Oil services / maritime 13 % Telecom 27 % Transport 19 % Sweden 71 % Medical 4 % Defence 17 % Other 19 % Norway 29 % TOP CUSTOMERS 5 largest 39 % 10 largest 47 % Other 61 % Other 53 %

59 SERVICES EXPERIENCED SPECIALISTS Leading edge knowledge through ACTIVE ENGINEERING EXPERTS, covering all vital parts of the development cycle.

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61 Knowledge Transfer Vertical Markets

62 TECHNOLOGY TRANSFER

63 EXPERTISE PROJECT MANAGEMENT Quality Time Technology Resources Risk and cost Configuration management ANALYSIS & DESIGN Requirements specifications System breakdown System modelling Architectural designs HW DEVELOPMENT Full/semi-custom design Components Simulations Tests Certification SW DEVELOPMENT Embedded and real-time platform bring-up Application development Algorithm development Framework development FPGA DEVELOPMENT Logic design and verification Real-time signal processing Cutting-edge technologies System-on-chip solutions Design verification MECHANICAL DEVELOPMENT Mechatronics Rugged design Enclosures, IP and environmental protection TEST & VERIFICATION Test management System and performance tests Test system development Test processes and system implementation

64 LOCATIONS ASIA

65 COOPERATION Multi-site R&D projects Common methodology and QA Cross country development Communication Confluence Jira Video

66 CASE SEATEX MAIN PROJECT TASKS Requirement and specification Hardware design FPGA design Device driver software for Windows, Linux and more Environmental pre-qualification and testing Production and system test facilities Final design review Production readiness review Documentation CONTROL SYSTEM FOR NAVIGATING VESSELS

67 CASE KPS MAIN PROJECT TASKS High-end video processing in FPGA Safety critical HW and SW design Carrier card for ETX CPU integration Extremely rugged electronics Design and testing for MIL-STD EMC Lifecycle responsibility Project management REMOTE WEAPON STATION FOR MILITARY VEHICLES

68 CASE ULSTEIN MAIN PROJECT TASKS Consultancy in systems development Software development NEXT GENERATION INTEGRATED AUTOMATION SYSTEM FOR SHIPS

69 CASE SLEIPNER MAIN PROJECT TASKS New-generation Hybrid CPU Controller FPGA with Nies soft-core processor High degree of flexibility Long lifetime ADVANCED CONTROL ELECTRONICS FOR THE SLEIPNER STABILISING SYSTEM

70 FINANCIALS Rune Wahl, CFO June 03, 2013, Oslo

71 REVENUE PER YEAR

72 REVENUE EX DISCONTINUED DISCONTINUED OPERATIONS CONTINUING OPERATIONS

73 GROWTH CONTINUING OPERATIONS UNDERLYING GROWTH (CAGR): : 14% : 10% : 5 % : 9 %

74 CUSTOMERS # > MNOK

75 BACKLOG TOTAL 800 PRODUCTS & SOLUTIONS 700 SERVICES Q1 07 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13

76 BACKLOG TIMELINE PRODUCTS & SOLUTIONS: SERVICES:

77 PROFITABILITY

78 EBITDA PER QUARTER 12 11,0 10 9,3 10,3 9, ,2 6,1 4 3,4 3,0 2 1,8 0 Q Q Q Q Q Q Q Q Q1-2013

79 EBITDA PRODUCTS & SOLUTIONS (12month rolling) ,6 29,5 31,9 29, , ,0 10 7, Q Q Q Q Q Q Q Q Q ,4-2,7

80 EBITDA SERVICES (12month rolling) 20 16,2 16,6 16, ,4 12,4 12,5 10 9,2 10,6 9,7 5 0 Q Q Q Q Q Q Q Q Q1-2013

81 EBITDA 12 MONTH ROLLING ,3 37, ,8 30, , , ,1 2,8 4,1 0 Q Q Q Q Q Q Q Q Q1-2013

82 EBITDA MARGIN 10% 9% 8% 7% 6% 5% 4% 3% 2% EBITDA margin 12 month rolling EBITDA margin 1% 0% Q Q Q Q Q Q Q Q Q1-2013

83 OPERATING EXPENSES Payroll Other expenses Payroll % of revenue Other expenses % of revenue % % 40% 60 30% 40 20% % 0 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 0%

84 EMPLOYEES PER COUNTRY 600 Denmark Germany Sweden Norway

85 FINANCING & DIVIDEND POLICY

86 BALANCE SHEET MARCH Non-current assets 181,9 Non-current assets 175, Interestbearing debt 0,0 Other liabilities 149,3 Interestbearing debt 22,2 Other liabilities 185,2 NO INTEREST- BEARING DEBT Inventories 58,8 Inventories 64, EQUITY RATIO 65 % Equity 276,2 100 Receivables 210,1 Receivables 173,7 100 Equity 246, Cash 3,0 Cash 11,5 Q Q Q Q1 2012

87 DEBT & EQUITY FINANCIAL DEBT (NOK MILLION) EQUITY RATIO 91 65% 65% 62% 59% 59% 55% Q Q1-13

88 DIVIDENDS The annual general meeting April 25, 2013 decided to distribute a dividend of NOK 0.25 per share for The DAT share traded ex-dividend at April 26, 2013.

89 DAT DIVIDEND POLICY Data Respons objective is to pay out a minimum of 50 % of net income in the form of dividends The payout should reflect Data Respons aim to give its shareholders competitive returns benchmarked against alternative investments in comparable companies. The dividend pertaining to a fiscal year will be declared at Data Respons annual general meeting in the following year. Data Respons may consider buying back shares in addition to ordinary dividend payments. Such considerations will be made in the light of the financial situation of the company.

90 AMBITIONS

91 GROWTH AREAS KEY CUSTOMERS KEY MARKETS KEY TECHNOLOGY KEY PEOPLE

92 REVENUE ex discontinued DISCONTINUED OPERATIONS CONTINUING OPERATIONS

93 GROWTH continuing operations UNDERLYING GROWTH (CAGR): : 14% : 10% : 5 % : 9 %

94 GROWTH AMBITION %

95 PROFITABILITY IMPROVEMENTS CUSTOMERS Focus on attractive market areas Reuse of platforms and technology Specialist focus in Services Expand portfolio per customer COST FOCUS Lean and flat organisation Culture for cost discipline Focus on Quality and Risk No unprofitable business units EFFICIENCY Profit Centers Centralized operations Global sourcing and buying power Discipline in BID processes High utilization and NO fixed price ASIA Strengthen organisation in Asia Transfer work and tasks development services Strong partner network with scalable production

96 EBITDA TARGET 10% 8% 6% 4% 2% 0% MARGIN 2012 CUSTOMERS COST FOCUS EFFICIENCY ASIA TARGET MARGIN

97 PROFITABILITY AMBITION 10% 9% 8% TARGET: 10 % 7% 6% 5% 4% 3% 2% EBITDA margin 12 month rolling EBITDA margin 1% 0% Q Q Q Q Q Q Q Q Q1-2013

98 KEY PRIORITIES GOING FORWARD 1 PROFITABILITY A focused business-line driven company Growth through key customers in main markets 2 3 FOCUSED KNOWLEDGE & EXPERIENCE Customer, market and technology driven Specialist teams, Local touch, long term GLOBAL VALUE CHAIN (ONE) Execution on quality, cost and operations Asia presence and robust partner network

99 DISCLAIMER This Presentation includes and is based, inter alia, on forwardlooking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Data Respons ASA (DAT) and DAT lines of business (including subsidiaries and affiliates). These expectations, estimates and projections are generally identifiable by statements containing words such as expects, believes, estimates, goals, scenarios or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for DAT businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although DAT believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. DAT is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither DAT nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

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