year-end report january – december 2008 hans gieskes, ceo and erik forsberg, cfo february 11, 2009
TRANSCRIPT
Year-end report January – December 2008
Hans Gieskes, CEO and Erik Forsberg, CFO
February 11, 2009
Highlights October – December 2008Negatives
UK performance remains weak – further cost cuts required
Nordic region continues to struggle – Norway and Denmark in particular
Weak economy hurts demand
Positives
CisionPoint sales and cost reductions yield continued strong margins in the US
USD strengthening starts to have an impact: +8 MSEK for Q4
Divestment of Danish subsidiary, excluding Plan and Connect in January 2009
Other
New organizational structure announced in December
The board proposes no dividend for the fiscal year 2008
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The RegionsNorth America
Organic growth 1% (3) January-December and -2% (0) October-December
CisionPoint sales continue to increase in the US – focus on migration of current clients
Cost reductions in the US contributed to good margins, despite weak economy hurting demand
Canada also significantly affected by weak economy in the fourth quarter
Rest of EuropeOrganic growth -13% (-2) January-December and -9% (-5) October-December
First new customers on CisionPoint Europe
Q4 implied quarter on quarter revenue growth in the UK, however partly due to seasonality
Germany affected by weak economy
Continued solid performance from Portugal – high growth and strong margins
Nordic and BalticsOrganic growth 0% (-1) January-December and -2% (-4) October-December
Plan and Connect has good growth and solid margins
Denmark and Norway margins very unsatisfactory – Denmark divested in January 2009
3
Cision Group, January – December 2008
Amounts in SEK million Jan – Dec
Revenue 1,783 (1,873)
Organic growth -3 % (1)
EBIT excluding goodwill impairments 68 (179)
EBIT excluding goodwill impairments, restructuring
expenses and costs for bid process125 (232)
EBIT margin excl. goodwill impairments, restructuring
expenses and costs for bid process7.0% (12.4)
Notes
1. Restructuring expenses of SEK 47 million during the period (52)
2. No currency impact on EBIT of during January-December 2008, compared to the same period 2007
3. Costs for bid process of SEK 10 million during 2008
4. For 2008, operating result includes profit from sale of real estate of 1 MSEK For 2007, operating result includes profit from sale of real estate of 10 MSEK
4
Cision Group, October – December 2008
Amounts in SEK million Oct – Dec
Revenue 487 (459)
Organic growth -2 % (-2)
EBIT excluding goodwill impairments 14 (35)
EBIT excluding goodwill impairments and restructuring
expenses35 (58)
EBIT margin excl. goodwill impairments and restructuring
expenses7.1% (12.7)
Notes
1. Restructuring expenses of SEK 21 million during the period (23)
2. Positive currency impact on EBIT of 8 MSEK during October-December 2008, compared to the
same period 2007
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Organic Growth & Operating Margin* (rolling 12 months)
-5%
-3%
-1%
1%
3%
5%
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
20
08
Q2
20
08
Q3
20
08
Q4
Gro
wth
5%
7%
9%
11%
13%
15%
Ma
rgin
Organic growth Operating margin
* Excluding goodwill impairment, restructuring expenses and costs for the April 2008 bid process
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
20
08
Q2
20
08
Q3
20
08
Q4
OC
F
0
50
100
150
200
250
300
EB
IT
Operating Cash Flow * EBIT *
Amounts in SEK million
* Excluding goodwill impairment, restructuring expenses and costs for the April 2008 bid process
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Regional Operating Performance
Segment Operating Profit, MSEK 1 Operating Margin, % 1
Jan-Dec 2008
Oct-Dec2008
Jan-Dec2008
Oct-Dec2008
North America 173 (176) 53 (48) 22.0% (22.2) 23.4% (24.2)
Rest of Europe 2 3 (78) 2 (18) 0.6% (13.3) 1.5% (13.1)
Nordic and Baltic 6 (17) -1 (6) 1.2% (3.3) -0.9% (4.5)
Notes
1. Operating Profit and Margin excluding restructuring expenses and goodwill impairments
2. For 2008, operating result includes profit from sale of real estate of 1 MSEK in Q2
For 2007, operating result includes profit from sale of real estate of 10 MSEK in Q1-Q2
3. No currency impact on EBIT compared to 2007 for Jan-Dec, but positive impact of 8 MSEK for Oct-Dec
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Financial Position
Balance Sheet per 31 December 2008 (MSEK)Goodwill 1 803 Equity 1 090
Other Fixed Assets 318 Long Term Liabilities 1 009
Current Assets 608 Current Liabilities 630
TOTAL ASSETS 2 729 TOTAL EQUITY AND LIABILITIES 2 729
31 Dec 2008 31 Dec 2007
Equity / Assets Ratio 40% 47%
Net Debt / Equity Ratio 66% 54%
Net Debt (MSEK) 724 689
Working Capital (MSEK) -131 -106
Balance Sheet Key Ratios
Cash-Flow (MSEK)
Jan-Dec 2008 Jan-Dec 2007
Operating Cash-Flow 136 273
Free Cash-Flow 20 94
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2009 Agenda: Focus on execution and transformation
1.Pace of cost cutting is accelerating. Structural solutions under review for non-performing
markets.
2.CisionPoint investments and innovation targeted to exceed competition.
3.Recession means good climate for active partnership discussions on e.g. media
monitoring production
In spite of 2008 performance and recession, Cision is one of few companies
well positioned in a pre-consolidation and pre-globalization market
10