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Interim ReportJanuary – March 2008
Niklas Flyborg and Erik Forsberg
April 24, 2008
2
Highlights January – March 2008
Positives
Solid growth for Plan and Connect excluding the UK
Good reception and sales of CisionPoint in the US
Growth in international sales – important new client wins
CisionPoint in Europe on track for gradual roll-out during 2008
Negatives
UK production disruptions implied significant loss of revenue
Monitor revenues continue to decline – mainly for print media
Nordics restructuring pace too slow
Currency development, mainly SEK/USD
3
The RegionsNorth America
Organic growth 2% in Q1-08 (0% in Q4-07)
CisionPoint well received with new customers in the US
Migration of current US customers to CisionPoint to take place during 2008
Positive development in Canada
Rest of EuropeOrganic growth -16% in Q1-08 (-5% in Q4-07)
UK production disruption estimated impact of 15 MSEK during Q1-08
Roll-out of CisionPoint during 2008 expected to improve growth and margins going forward
Nordic and BalticsOrganic growth -1% in Q1-08 (-4% in Q4-07)
Strong growth for Plan and Connect, but weak demand for Monitor
Restructuring pace slow with lower operating margins than last quarter
Restructuring to be completed during 2008 – move towards complete digital service offering
International SalesNew markets targeted through sales activities in Hong Kong, Holland and Switzerland
Continued strong demand and important client wins
4
Cision Group, January –March 2008
Amounts in SEK million January – March
Revenue 443 (488)
Organic growth -4 % (3)
EBIT 31 (41)
EBIT excl. restructuring expenses 37 (61)
Operating margin excl. restructuring expenses 8.4% (12.5)
- Restructuring expenses of SEK 7 million during the quarter (20)
5
Organic Growth & Operating Margin* (rolling 12 months)
-2%
0%
2%
4%
6%
8%
20
05
Q1
20
05
Q2
20
05
Q3
20
05
Q4
20
06
Q1
20
06
Q2
20
06
Q3
20
06
Q4
20
07
Q1
20
07
Q2
20
07
Q3
20
07
Q4
20
08
Q1
Gro
wth
5%
7%
9%
11%
13%
15%
Ma
rgin
Organic growth Operating margin
* Excluding write-down of goodwill and restructuring expenses
6
Operating Cash Flow and EBIT * (rolling 12 months)
0
50
100
150
200
250
300
20
05
Q1
20
05
Q2
20
05
Q3
20
05
Q4
20
06
Q1
20
06
Q2
20
06
Q3
20
06
Q4
20
07
Q1
20
07
Q2
20
07
Q3
20
07
Q4
20
08
Q1
OC
F
0
50
100
150
200
250
300
EB
IT
Operating Cash Flow * EBIT *
* Excluding write-down of goodwill and restructuring costsAmounts in SEK million
7
Regional Operating Performance, January –March 2008
Segment Operating Profit, MSEK 1 Operating Margin, % 1
North America 44 (46) 23,1 % (22,6)
Rest of Europe 2 3 (27) 2,7 % (16,8)
Nordic and Baltic 2 (4) 1,2% (3,1)
NOTES1 Excluding restructuring expenses2 For Q1 2007, operating result includes profit of 7 MSEK from sale of real estate
8
Financial Position
Balance Sheet per 31 March 2008 (MSEK)
Goodwill 1 741 Equity 1 198
Other Fixed Assets 304 Long Term Liabilities 819
Current Assets 501 Current Liabilities 529
TOTAL ASSETS 2 547 TOTAL EQUITY AND LIABILITIES 2 547
31 March 2008 31 March 2007
Equity / Assets Ratio (%) 47 45
Debt / Equity Ratio (%) 55 57
Net Debt (MSEK) 665 735
Working Capital (MSEK) -87 -85
Balance Sheet Key Ratios
Cash-Flow (MSEK)
Jan-March 2008 Jan-March 2007 Last 12M (April-March 07/08)
Operating Cash-Flow 18 90 201
Free Cash-Flow -18 30 45
9
Three Key Priorities Going Forward
1. CisionPoint in all markets
Continue roll-out in the US to new customers, migrate current client base
Roll-out fully integrated version in Europe
2. Leverage competitive advantage for international sales Grow international accounts in the current regions
Accelerate the expansion in new markets
3. Reduce cost base per restructuring
programsE.g outsourcing, international production centre, new shared
software solutions
=> Secure delivery towards long term financial targets