DEDICATED TO EMBEDDED SOLUTIONS Q4 2011 DATA RESPONS ASA
AGENDA 1. MAIN FIGURES 2. SEGMENT INFORMATION 3. BUSINESS CONCEPT 4. OUTLOOK 2
MAIN FIGURES
SUMMARY OF Q4 2011 OPERATING REVENUE: NOK 225.6 MILLION EBITDA: NOK 5.2 MILLION EBIT: NOK -83,2 MILLION (after impairment of goodwill NOK 87 million) ORDER INTAKE: NOK 224 MILLION ORDER BACKLOG: NOK 639 MILLION OPERATING CASH FLOW: NOK 8.7 MILLION 4
PROFIT AND LOSS STATEMENT NOK MILLION Q4 2011 Q4 2010 CHANGE Operating revenues 225.6 204.4 10 % EBITDA 5.2-4.1 EBITA 4.1-5.7 Profit before taxes -84.0-7.9 NOK MILLION YTD 2011 YTD 2010 CHANGE Operating revenues 849.9 706.8 20 % EBITDA 13.4 3.3 EBITA 8.1-3.6 Profit before taxes -82.5-7.7 5
BALANCE SHEET ASSETS (NOK MILLION) 31.12 2011 31.12 2010 Intangible assets 155.1 242.9 Deferred tax assets 20.1 31.9 Machinery & equipment 9.7 11.7 Total non-current assets 184.9 286.5 Inventories 59.0 62.8 Receivables 195.2 188.8 Cash and cash equivalents 4.9 4.7 Total current assets 259.1 256.2 Total assets 444.0 542.7 EQUITY AND LIABILITIES (NOK MILLION) 31.12 2011 31.12 2010 Total equity 242.4 334.6 Non-current liabilities 6.7 7.9 Current interest-bearing loans 24.1 16.0 Accounts payables 85.3 73.8 Other current liabilities 85.5 110.5 Current liabilities 194.9 200.2 Total equity and liabilities 444.0 542.7 6
CASH FLOW NOK MILLION Q4 2011 Q4 2010 Net cash flow from operating activities 8.7 7.9 Net cash flow from investing activities -0.6-1.9 Net cash flow from financing activities -7.0-4.4 Net cash flow from the period 1.2 1.5 Cash at beginning of the period 3.5 3.3 Exchange gain/losses on cash 0.2 0.0 Cash at end of the period 4.9 4.7 NOK MILLION YTD 2011 YTD 2010 Net cash flow from operating activities 1.8-22.6 Net cash flow from investing activities -9.7-17.1 Net cash flow from financing activities 8.1 16.0 Net cash flow from the period 0.2-23.8 Cash at beginning of the period 4.7 27.1 Exchange gain/losses on cash 0.0 1.4 Cash at end of the period 4.9 4.7 7
OPERATING REVENUES PER QUARTER 250 200 170,8 172,2 176,3 204,4 218,3 216,9 189,1 225,6 150 154,0 100 50 0 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011 8
OPERATING REVENUES YTD 900 800 700 635,0 818,5 726,1 706,8 849,9 600 500 400 393,0 300 200 100 0 2006 2007 2008 2009 2010 2011 9
EBITA PER QUARTER 6 4 2 0 4,1 2,1 2,0 1,7 1,1 1,0 0,1 0,3 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011 -2-4 -6-5,7-8 10
EBITA YTD 60 54,9 50 47,5 40 30 20 19,5 10 0-10 2006 2007 2008 2009 2010 2011-3,6 8,1-20 -30-40 -28,8 11
SEGMENT INFORMATION
REVENUE PER BUSINESS AREA, YTD Solutions 49 % Products 7 % Services Solutions Products Services 44 % 13
REVENUE PER INDUSTRY SECTOR, YTD Offshore 10 % Medical 5 % Energy 4 % Automation 7 % Maritime 9 % Defence 13 % Other 12 % Telecom 24 % Transportation 16 % Defence Energy Medical Offshore Maritime Automation Telecom Transportation Other 14
REVENUE PER COUNTRY, YTD Sweden 39 % Germany 6 % Denmark 13 % Denmark Norway Germany Sweden Norway 42 % 15
EMPLOYEES PER DIVISION, YTD Development 64 % Administration 12 % Administration Operations Sales Development Sales 10 % Operations 14 % 16
EMPLOYEES PER COUNTRY, YTD 600 Germany Sweden Denmark Norway 500 400 300 200 100 0 31.12.2006 31.12.2007 31.12.2008 31.12.2009 31.12.2010 31.12.2011 17
GROSS MARGIN 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 18
OPERATING EXPENSES (NOK MILLION) Payroll Other expenses Payroll % of revenue Other expenses % of revenue 120 60% 100 50% 80 40% 60 30% 40 20% 20 10% 0 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 0% 19
DATA RESPONS DENMARK DATA RESPONS A/S Established: 1999 Employees: 43 Offices: 2 NOK MILLION Q4-11 Q4-10 % Revenues 16.9 31.1-46 % EBITA -1.3-8.0 Order intake 15 42 NOK MILLION YTD-11 YTD-10 % Revenues 109.3 119.9-9 % Operating revenue was impacted by lower project deliveries and effects of the planned downsizing of the Danish operations. EBITA -9.8-14.4 Order backlog 24 64 The company implemented several efficiency initiatives during 2011 to reduce the overall cost level and to adjust to the current market conditions. The main focus in Denmark is core business, customer relations, risk reduction and profitability improvements The Danish operation has a more cost effective structure going into 2012. REVENUE PER BUSINESS AREA Services Solutions Products 55 % 41 % 4 % 20
DATA RESPONS GERMANY DATA RESPONS GMBH Established: 2005 Employees: 37 Offices: 2 NOK MILLION Q4-11 Q4-10 % Revenues 13.3 13.2 1 % EBITA 0.1 0.9 Order intake 11 14 NOK MILLION YTD-11 YTD-10 % Revenues 50.5 52.5-4 % Germany has showed improving order intake and backlog during 2011 EBITA 0.3 2.1 Order backlog 21 16 Continue the strategy of building the most complete supplier of services, products and solutions in the German market REVENUE PER BUSINESS AREA The company has a good foothold in our regions and is well positioned for future growth and improved profitability. Services Solutions Products 66 % 22 % 12 % 21
DATA RESPONS SWEDEN DATA RESPONS AB Established: 2000 Employees: 202 Offices: 6 NOK MILLION Q4-11 Q4-10 % Revenues 91.4 80.8 13 % EBITA -2.8-0.7 Order intake 98 71 NOK MILLION YTD-11 YTD-10 % Revenues 327.4 267.0 23 % Strong growth in revenue order intake during and order backlog during 2011. EBITA -4.3-0.4 Order backlog 173 144 During the year the company has increased its geographical deployment in important regions and strengthened the total competency platform Profitability have been impacted by investments and costs related to the completion and introduction of several new solutions contracts. Initiatives taken to give a more efficient and cost effective organization going into 2012. REVENUE PER BUSINESS AREA Services Solutions Products 66 % 28 % 6 % 22
DATA RESPONS NORWAY DATA RESPONS NORGE AS Established: 1986 Employees: 164 Offices: 8 NOK MILLION Q4-11 Q4-10 % Revenues 104.8 79.4 32 % EBITA 12.3 6.3 Order intake 99 93 NOK MILLION YTD-11 YTD-10 % 2011 is the best performance in the Norwegian company s history in all aspects. Increasing levels of solutions deliveries, positive order intake, record high order backlog, a strong services market and general high activity in the organization. Leading market position, a well-balanced business mix, and a record high order backlog. High degree of recurring Solutions customers with long lifecycle. Revenues 364.7 271.1 35 % EBITA 35.9 20.9 Order backlog 421 382 REVENUE PER BUSINESS AREA Services Solutions Products 63 % 8 % 29 % 23
ORDER INTAKE PER QUARTER 350 300 302 250 200 192 202 219 246 261 224 150 154 153 100 50 0 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011 24
ORDER INTAKE YTD 1000 900 945 913 883 800 763 700 600 500 400 300 200 100 502 611 0 2006 2007 2008 2009 2010 2011 25
ORDER BACKLOG 800 700 600 544 591 604 633 678 641 639 500 400 400 418 300 200 100 0 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011 26
LARGEST SHAREHOLDERS DECEMBER 31, 2011 SHAREHOLDERS SHARES % CUSTOM HOLDING AS 11 638 650 24,10 % MP PENSJON PK 4 821 000 9,98 % DYVI CAPITAL AS 2 200 000 4,56 % BRAGANZA AS 2 032 700 4,21 % FOUGNER INVEST AS 1 781 200 3,69 % VARNER INVEST AS 1 500 000 3,11 % HAAKON MORTEN SÆTER 1 263 211 2,62 % DNB NOR SMB VPF 1 009 669 2,09 % SILVERCOIN INDUSTRIES AS 984 200 2,04 % STOREBRAND VEKST 912 802 1,89 % BERNT AS 824 900 1,71 % STOREBRAND NORGE I 816 491 1,69 % LOLIGO AS 800 000 1,66 % VERDIPAPIRF.STOREB.NORGE INSTITUS. 789 492 1,64 % P-INVEST AS 695 500 1,44 % STOREBRAND LIVSFORSIKRING AS 623 920 1,29 % SKAGEN VEKST 600 000 1,24 % RO INVEST AS 560 724 1,16 % BIRK INVESTMENT AS 525 000 1,09 % SHAREHOLDERS: 872 LEIF HÜBERT 500 000 1,04 % TOTAL 20 LARGEST 34 879 459 72,24 % OTHERS 13 405 335 27,76 % TOTAL NUMBER OF SHARES 48 284 794 100,00 % 27
BUSINESS CONCEPT
THIS IS DATA RESPONS FAST FACTS ESTABLISHED: 1986 Listed on the Oslo Stock Exchange (Ticker: DAT) CERTIFICATIONS: ISO 9001:2008 ISO 14001:2004 OHSAS 18001:2007 EMPLOYEES: 446 OFFICES: Denmark (2) Germany (2) Norway (8) Sweden (6) China (1) Taiwan (1)
VISION
WE KNOW EMBEDDED SOLUTIONS MEASURING SYSTEMS FOR OIL AND GAS NAVIGATION SYSTEMS FOR VESSELS RADAR SYSTEMS FOR FIGHTER JETS 31
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COMPLETE VALUE CHAIN
COVERING IMPORTANT INDUSTRIAL CLUSTERS LOCAL CLOSE TO THE CUSTOMER SPECIFICATION DEVELOPMENT DELIVERY NEW GENERATION 38
ACCESS TO LEADING EDGE COMPETENCE 450 EMBEDDED SW/HW EXPERTS SPECIFICATION DEVELOPMENT DELIVERY NEW GENERATION 39
ACCESS TO ASIA AND WORLD LEADING PARTNERS LOW-COST AND HIGH QUALITY ASIA SPECIFICATION DEVELOPMENT DELIVERY NEW GENERATION 40
LONG TERM INNOVATION NEW TECHNOLOGY & REDUCED COSTS PARTNER SPECIFICATION DEVELOPMENT DELIVERY NEW GENERATION 41
MARKET TRENDS
IMPACT FROM CONSUMER ELECTRONICS
MEDICAL INCREASING CUSTOMER BASE
OIL SERVICE STRONG POSITION AND GROWING MARKET
SUCCESS STORY: IN-HOUSE VS. OUTSOURCED CUSTOMER: Oil & offshore FIRST CONTRACT SIGNED: 2007 ACCUMULATED VALUE: NOK 75 million
SUCCESS STORY: IN-HOUSE = COMPLEX 50 06 10 BILL OF MATERIAL R&D PERSONS INVOLVED NUMBER OF SUPPLIERS THE CUSTOMER HANDLES: Development Assembling and test RMA Logistics, shipment, stock End of life issues Next generations
SUCCESS STORY: OUTSOURCED = SIMPLE 01 00 01 BILL OF MATERIAL R&D PERSONS INVOLVED NUMBER OF SUPPLIERS DATA RESPONS HANDLES: Development Assembling and test RMA Logistics, shipment, stock End of life issues Next generations
ACCESS TO ASIA
ASIA LARGE-SCALE, LOW-COST PRODUCTION COMBINED WITH LOCAL INNOVATION INNOVATION PRODUCTION
DATA RESPONS IN TAIPEI 10 YEARS EXPERIENCE 51
DATA RESPONS IN SHANGHAI LOCATED IN SHANGHAI S MOST SUCCESSFUL INDUSTRIAL PARK: ZHANG JIANG HI-TECH PARK 52
OUTLOOK
STOCK EXCHANGE NOTICES [1] MNOK 15 SOLUTION CONTRACT WORTH NOK 15 MILLION [12.10.2011] Data Respons has signed a solution contract with a global industrial player. The contract is worth NOK 15 million and has considerable future potential. 54
STOCK EXCHANGE NOTICES [2] MNOK 25 CONTRACT WORTH NOK 25 MILLION [27.10.2011] Data Respons has extended a contract with an existing international customer in the oil service industry. The new contract is valued at NOK 25 million and the order volume will be delivered over the next two years. 55
STOCK EXCHANGE NOTICES [3] MNOK 9 SOLUTION CONTRACT WORTH NOK 9 MILLION [22.11.2011] Data Respons has been awarded a contract worth NOK 9 million from a world-leading company within the oil service industry. The agreement covers the delivery of advanced computer solutions for use in rough environmental conditions. Deliveries will be carried out during 2012. 56
STOCK EXCHANGE NOTICES [4] MNOK 10 SOLUTION CONTRACT WORTH NOK 10 MILLION [23.11.2011] Data Respons has received a contract from a customer worth NOK 10 million. The contract covers development and delivery of a new solution platform as well as continued delivery of existing solutions. Delivery will take place within the next few months. 57
639 MNOK SOLID order backlog Good momentum in SERVICES Large SOLUTION deliveries in the pipeline 58
GROWTH DRIVERS #1 COMPUTER INTELLIGENCE Continuous demand for new functionality Increasing complexity and technology content Impact from consumer technology #2 SOLUTIONS Increased complexity and shorter time to market Very specialized expertise needed Companies want to focus on their own core business
GROWTH DRIVERS #3 NEW REGIONS Expanding our customer base Closer contact with existing customers Unique business model contributes to rapid establishment in new regions #4 ACQUISTIONS Constant focus on acquisition opportunities Strengthen our expertise and market access Improve customer structure
FOCUS Profitability Improvement Program (PIP) Yearly cost reduction of 20 million Coordination of Nordic operations center Transfer tasks to Asia organization and partners Strong customer focus Geographic distribution / local touch Attractive customer base (long term/recurring) High customer satisfaction Discipline in operations Speed Quality Cost improvement 61
OUTLOOK MARKET CONDITIONS Long-term growth drivers intact. Financial uncertainty has not affected the positive market conditions in our major markets. Monitoring market conditions carefully ahead. STRONG BUSINESS CONCEPT Complete Solutions provider Customer-driven organization Well-diversified in terms of industries, regions and with a balanced customer portfolio Global partner network and Asia setup LONG-TERM GROWTH AND PROFITABILITY 20 MNOK yearly cost reduction from the Profitability Improvement Program effective from 2012 Current demand from our customers, solid order intake and order backlog indicates further growth. Expect improved profitability and cash flow 62
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