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Interim Report January – March 2008 Niklas Flyborg and Erik Forsberg April 24, 2008

Interim Report January – March 2008 Niklas Flyborg and Erik Forsberg April 24, 2008

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Page 1: Interim Report January – March 2008 Niklas Flyborg and Erik Forsberg April 24, 2008

Interim ReportJanuary – March 2008

Niklas Flyborg and Erik Forsberg

April 24, 2008

Page 2: Interim Report January – 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

Page 3: Interim Report January – March 2008 Niklas Flyborg and Erik Forsberg April 24, 2008

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

Page 4: Interim Report January – March 2008 Niklas Flyborg and Erik Forsberg April 24, 2008

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)

Page 5: Interim Report January – March 2008 Niklas Flyborg and Erik Forsberg April 24, 2008

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

Page 6: Interim Report January – March 2008 Niklas Flyborg and Erik Forsberg April 24, 2008

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

Page 7: Interim Report January – March 2008 Niklas Flyborg and Erik Forsberg April 24, 2008

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

Page 8: Interim Report January – March 2008 Niklas Flyborg and Erik Forsberg April 24, 2008

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

Page 9: Interim Report January – March 2008 Niklas Flyborg and Erik Forsberg April 24, 2008

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