year-end report january – december 2008 hans gieskes, ceo and erik forsberg, cfo february 11, 2009

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Year-end report January – December 2008 Hans Gieskes, CEO and Erik Forsberg, CFO February 11, 2009

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Page 1: Year-end report January – December 2008 Hans Gieskes, CEO and Erik Forsberg, CFO February 11, 2009

Year-end report January – December 2008

Hans Gieskes, CEO and Erik Forsberg, CFO

February 11, 2009

Page 2: 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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Page 3: Year-end report January – December 2008 Hans Gieskes, CEO and Erik Forsberg, CFO February 11, 2009

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

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Page 4: Year-end report January – December 2008 Hans Gieskes, CEO and Erik Forsberg, CFO February 11, 2009

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

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Page 5: Year-end report January – December 2008 Hans Gieskes, CEO and Erik Forsberg, CFO February 11, 2009

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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Page 6: Year-end report January – December 2008 Hans Gieskes, CEO and Erik Forsberg, CFO February 11, 2009

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

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Page 7: Year-end report January – December 2008 Hans Gieskes, CEO and Erik Forsberg, CFO February 11, 2009

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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Page 8: Year-end report January – December 2008 Hans Gieskes, CEO and Erik Forsberg, CFO February 11, 2009

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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Page 9: Year-end report January – December 2008 Hans Gieskes, CEO and Erik Forsberg, CFO February 11, 2009

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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Page 10: Year-end report January – December 2008 Hans Gieskes, CEO and Erik Forsberg, CFO February 11, 2009

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

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