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Niklas Flyborg, Gunilla Rudebjer
October 25, 2007
January - September 2007
2
Highlights January – September 2007
CisionPoint launched in the US
Market success within prioritized areas
Strong growth in analysis services
Important client wins in the Nordic region
Coding tool launched in the US
Continued improved market share within Plan and Connect in the Nordic region
New IR analyses services launched
Manual production in Nordic region is being phased out
Restructuring in the UK proceeds according to plan
3
Market
Generally good market conditions but increasing competition in all service areas
New media and technology change media habits
New market roles
Information is accessible and free
Publishers seek new revenue streams as print media declines in relative importance
Opportunities in mediating information
Growing importance of reputation and brands drive demand
Rising demand for solutions with analyzed information
Growing demand within international client segment
Consolidation will continue and increase, mainly driven by technological shift
(digitalization), internationalization of industry and lack of critical mass amongst
regional competitors
4
Media Habits – the Internet as a complement to other sources
5
Market
Generally good market conditions but increasing competition in all service areas
New media and technology change media habits
New market roles
Information is accessible and free
Publishers seek new revenue streams as print media declines in relative importance
Opportunities in mediating information
Growing importance of reputation and brands drive demand
Rising demand for solutions with analyzed information
Growing demand within international client segment
Consolidation will continue and increase, mainly driven by technological shift
(digitalization), internationalization of industry and lack of critical mass amongst
regional competitors
6
Cision - operator and distributor
Operator (Atodia):Profits on production, technology and
on being the access point for content
Publisher:Finds new revenues
Reaches new target groups
Distributor:Cost rationalization
Focus on Business Development
Digital content allows business development opportunities and new target groups. Through Atodia, Cision realizes this market potential
7
Market
Generally good market conditions but increasing competition in all service areas
New media and technology change media habits
New market roles
Information is accessible and free
Publishers seek new revenue streams as print media declines in relative importance
Opportunities in mediating information
Growing importance of reputation and brands drive demand
Rising demand for solutions with analyzed information
Growing demand within international client segment
Consolidation will continue and increase, mainly driven by technological shift
(digitalization), internationalization of industry and lack of critical mass amongst
regional competitors
8
January – September 2007
Amounts in SEK million January – September
Revenue 1 413 (1 429)
Organic growth 2 % (4)
EBIT 144 (-332)
EBIT excl. write-down goodwill and restructuring expenses 173 (172)
Operating margin excl. write-down goodwill and restructuring expenses 12.3% (12.0)
Operating cash flow 180 (171)
• Restructuring expenses of SEK 29 million (35)
9
July – September 2007
Amounts in SEK million July – September
Revenue 456 (455)
Organic growth 2 % (4)
EBIT 60 (41)
EBIT excl. write-down goodwill and restructuring expenses 60 (57)
Operating margin excl. write-down goodwill and restructuring expenses 13.0% (12.5)
Operating cash flow 55 (69)
• Restructuring expenses of SEK 0 million (16)
10
Organic Growth & Operating Margin* (rolling 12 months)
-2%
0%
2%
4%
6%
8%
2004 Q
3
2004 Q
4
2005 Q
1
2005 Q
2
2005 Q
3
2005 Q
4
2006 Q
1
2006 Q
2
2006 Q
3
2006 Q
4
2007 Q
1
2007 Q
2
2007 Q
3
Gro
wth
5%
7%
9%
11%
13%
15%
Marg
in
Organic growth Operating margin
* Excluding write-down goodwill and restructuring expenses
11
Operating Cash Flow and EBIT * (rolling 12 months)
0
50
100
150
200
250
300
2004 Q
3
2004 Q
4
2005 Q
1
2005 Q
2
2005 Q
3
2005 Q
4
2006 Q
1
2006 Q
2
2006 Q
3
2006 Q
4
2007 Q
1
2007 Q
2
2007 Q
3
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
12
Balance Sheet September 30, 2007
Working capital: -70 Equity / Assets ratio: 48% Debt / Equity ratio: 57 % Net debt: 728
Financial liabilities 967
Operating liabilities 438
Equity 1 273
Financial Assets, 166
Current receivables, 368
Other fixed assets, 261
Goodwill 1 883
Amounts in SEK million
13
The Regions
North America
Organic growth amounted to 6 % in Q3
New generation of CisionPoint launched
Strong demand for integrated services and analysis services
Rest of Europe
Organic growth amounted to -1 % in Q3
Development of the large and international client segment has begun in the UK
Efficiency improvements have led to cost savings
Nordic & Baltic
Organic growth amounted to -1 % in Q3
Revenue loss due to the phase out of non-strategic services
Phase-out of manual production
14
Restructuring
Restructuring expenses amounted to SEK 29 million (35).
The action programs are expected to lead to yearly savings of SEK 200 million with a full effect by 2009. Restructuring expenses are expected to total SEK 150 million. The impact on earnings based on the 2006 expense level and exchange rates is estimated as follows:
Estimates of aggregate effects are preliminary and could be affected by outside circumstances, which could result in
eventual changes in the time schedule. Earlier estimates in parentheses.
SEK million 2007 2008 2009
Savings impact 65 (75) 155 (165) 200 (200)
Restructuring expenses 53 (63) 40 (50) –
Net savings 12 (12) 115 (115) 200 (200)
15
Cision today Strengths
Global market leader with a common brand
Unparalleled offering – breadth and depthSoftware as a Service platform
New IR analyses
Large client base30 000 clients world-wide
Prime position in North America – the leading media market in the world
Strong cash flow
OpportunitiesStrong growth in international client segment
Strong position within our client segmentGaining market shares within Plan and Connect
Effects from initiated cost reduction program
Increased synergies within and between regions
Expansions to new marketsEstablishment in Asia in Q2
Cision is well positioned to capitalize on a growing market.