OPERATION NEXTERDAY COMPTEL INTERIM REPORT Q3 2015 Tom Jansson, CFO Helsinki, 20 th of October 2015 1
Q3 HIGHLIGHTS STRONG ORDER BACKLOG CONTINUED Net sales +10.3% (EUR 22.4 million) Operating result -63.7% (EUR 0.8 million) One time tax charge EUR 0.4 million Order backlog +18.9% (EUR 53.5 million) Intelligent Data business area sales growing by 7.0% strong sales in Datarefinery and Fastermind Service Orchestration business area sales growing by 12.7% FlowOne fulfillment currently the growth engine for Comptel Integrated Fastermind solution customers now in all regions. 2
OPERATING ENVIRONMENT AND OUR STRATEGY 3
CLOUD GENERATION THE APP ECONOMY INTERNET OF THINGS PERFECTING DIGITAL MOMENTS AND TRANSLATING THEM TO BUSINESS MOMENTS BY CONNECTING DEMAND AND SUPPLY HYPERSPEED VIRTUALISATION BIG DATA 4
KEY EVENTS SUPPORTING THESE TRENDS ANNOUNCED IN THE REPORTING PERIOD Q3/2015 Cloud generation from phenomena to norm Over one third of phones Smartphones Third of total network traffic related to Social Networking Hyperspeed new generations adopted globally About 39% of mobile phones operate in 3G / 4G networks Globally 46% of households have Internet access App economy new demand for digital services In 2014, the number of Android apps grew more than 100% and ios apps more than 60% Business and Lifestyle replaced Games as fastest growing segment in Apple App Store Internet of Things building platforms 3.5 connected devices per person now (25 billion), growing to 7 by 2020 IBM investing $3 Bn in IoT during next 4 years, India connecting 100 cities in $2 Tn Smart City project Virtualisation from disruption to mainstream About 70% of new launched services running on virtual servers During 2014, Software Controlled Networking market more than doubled, now generally accepted as the future of networking Big data growth continues During 2014, global Big Data revenue grew 35% to 38 Bn$ The average price of Cloud computing and storage dropped 75% in two years 5
STRATEGIC OBJECTIVES Comptel s target is to establish itself as a leading software vendor for connecting digital demand and supply. Strategic objectives Achievements in Q3-2015 Solutions with unique value Thought leadership Customer excellence New markets Leverage by partners Inspired people New Monetizer solution to help communications service providers to quickly create differentiated offers and onboard new services Significant order from Italian customer belonging to global operator group for FlowOne Fulfillment licenses and related services Significant Order for Application Development Services from Saudi Arabian Customer TDC Group Honours Comptel as Best Performing IT Project Team Investments in US started 6
Q3 PERFORMANCE 7
QUARTERLY PERFORMANCE 12 MONTH ORDER BACKLOG CONTINUED TO GROW Net sales and order backlog EUR million 70,0 60,0 50,0 40,0 30,0 20,0 10,0 Operating result and operating result % EUR million 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% 0,0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Net sales Order backlog Operating result Operating result % Net sales +10,3% compared to 3Q14 Operating result -63,7% compared to 2Q14 8 JOINT CONFIDENTAL
BUSINESS UNIT BREAKDOWN EUR million 25 20 15 8,1 11,5 11,7 11,8 12,1 13,2 10 5 9,9 9,1 8,6 9,1 9,6 9,2 0 Q1 2014 Q2 2014 Q3 2014 Q1 2015 Q2 2015 Q3 2015 Intelligent Data Service Orchestration 9
PROJECT & LICENSE AND RECURRING BUSINESS BREAKDOWN STEADY PERFORMANCE CONTINUED EUR million 30,0 25,0 8,0 20,0 15,0 8,9 8,3 8,4 8,9 8,5 8,5 10,0 5,0 9,1 12,3 9,9 18,8 12,1 13,2 13,9 0,0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Project&License Recurring 10 JOINT CONFIDENTAL
GEOGRAPHIC NET SALES BREAKDOWN Regions grew compared to previous year EUR million 30 25 20 15 10 5 0 11,8 7,1 8,1 8,7 8,1 9,2 6,8 5,7 7,4 7,3 5,9 6,3 6,8 6,0 6,4 3,2 3,8 3,5 3,3 4,1 4,6 2,2 1,9 2 2,8 2,4 3,1 2,5 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Americas Middle East and Africa Asia-Pacific Europe 11 JOINT CONFIDENTAL
FINANCIAL POSITION EUR, million 30 Sep 2015 30 Sep 2014 Change, % Statement of financial position, total 65.3 62.0 +5.2 Liquid assets 2.7 5.7-53.1 Trade receivables 23.6 22.0 6.9 Interest-bearing debt 5.4 5.6-2.4 Equity ratio, % 64.9 59.0 +10.1 12
OUTLOOK FOR 2015: NO CHANGES We expect the 2015 net sales to grow compared to previous year and we expect operating profit to be in the range of 8-12%, excluding one-time charges. Characteristically a significant part of Comptel s operating profit and net sales is generated in the second half of the year. 13
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THANK YOU! LIFE IS DIGITAL MOMENTS. 15 JOINT CONFIDENTAL
Information on this presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The content of the presentation is only a summary of the company's performance. The company makes no representation or warranty as to the continued accuracy, content or reliability of this data and states no obligation to update the data included in this presentation, as operational changes may occur over time. The content of this presentation is copyright Comptel Corporation. All rights reserved. Reproduction, transfer, distribution or storage of part or all of the contents in any form without prior written permission of the company is prohibited. 16