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Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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Page 1: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

Niklas Flyborg, Gunilla Rudebjer

October 25, 2007

January - September 2007

Page 2: 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

Page 3: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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

Page 4: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

4

Media Habits – the Internet as a complement to other sources

Page 5: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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

Page 6: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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

Page 7: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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

Page 8: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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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)

Page 9: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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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)

Page 10: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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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

Page 11: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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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

Page 12: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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

Page 13: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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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

Page 14: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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)

Page 15: Niklas Flyborg, Gunilla Rudebjer October 25, 2007 January - September 2007

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.