niklas flyborg, gunilla rudebjer july 26, 2007 january - june 2007

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Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

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Page 1: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

Niklas Flyborg, Gunilla Rudebjer

July 26, 2007

January - June 2007

Page 2: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

2

Highlights January – June 2007

Important client wins

Strong growth in integrated services and evaluation services

Growth in international clients segment

Restructuring process proceeds according to plan

Increased earnings and margins

Slightly decreased growth due to shift to digital offering

Page 3: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

3

Cision new common corporate name and brand

The Annual General Meeting 2007 resolved to change the company’s name to Cision

The Group gets a common name and uniform profile across all markets

Global ad campaign

Common web sites launched in Q3

CisionPoint increasingly common offering in all markets

New, increasingly common portals are being launched

A common name that applies to every part of the Group allows Cision to

Better leverage its international presence

Be an obvious partner to large and international clients

Increase efficiency

Move towards services that contain analyzed information

Page 4: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

4

PlanWorld leading contact database with media outlets, journalists, analysts and investors.

• 20 % of revenue

ConnectDistribution of information to the right target audience.

• 5 % of revenue

MonitorMonitoring of the media impact.

• 61 % of revenue

AnalyzeAnalysis of the media image.

• 14 % of revenue

Cision point - Integrated functionality

Page 5: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

5

Cision - operator and distributor

OPERATOR:Enabler and intermediary

First, able profit on production and

technology

Second, profit on being the access

point (exchange) for media content

PUBLISHER:Finds new revenues

Reaches new target groups

Gets cost efficient business

development

Copyright issue is resolved

Finds leverage through new sales

channels

DISTRIBUTOR:Will not be exclusive on content

over time

Cost rationalization through

divesting production

Focus on target group development

and service enhancement

Focus on Value-Added Services

Page 6: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

6

Market

Generally good market conditions but tough competition in all service areas

Growing importance of reputation and brands drive demand

Rising demand for integrated services with value-added analyzed information

Growing demand within international client segment

New market roles as content becomes increasingly accessible

Publishers seek new revenue streams as print media declines in relative importance

Opportunities in mediating information

Consolidation will continue and increase, mainly driven by technological shift

(digitalization), internationalization of industry and lack of critical mass amongst

regional competitors

Page 7: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

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January – June 2007

Amounts in SEK million January – June

Revenue 957 (974)

Organic growth 1 % (4)

EBIT 84 (-373)

EBIT excl. write-down goodwill and restructuring expenses 114 (115)

Operating margin excl. write-down goodwill and restructuring expenses 11.9% (11.8)

Operating cash flow 125 (102)

• Restructuring expenses of SEK 29 million (18)

Page 8: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

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April – June 2007

Amounts in SEK million April – June

Revenue 469 (482)

Organic growth 0 % (5)

EBIT 44 (32)

EBIT excl. write-down goodwill and restructuring expenses 53 (50)

Operating margin excl. write-down goodwill and restructuring expenses 11.3% (10.3)

Operating cash flow 35 (68)

• Restructuring expenses of SEK 9 million (18)

Page 9: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

9

Organic Growth & Operating Margin* (rolling 12 months)

-2%

0%

2%

4%

6%

8%

2004

Q3

2004

Q4

2005

Q1

2005

Q2

2005

Q3

2005

Q4

2006

Q1

2006

Q2

2006

Q3

2006

Q4

2007

Q1

2007

Q2

Gro

wth

5%

7%

9%

11%

13%

15%

Mar

gin

Organic growth Operating margin

* Excluding write-down goodwill and restructuring expenses

Page 10: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

10

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

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 11: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

11

Balance Sheet June 30, 2007

Working capital: -70 Equity / Assets ratio: 46% Debt / Equity ratio: 59 % Net debt: 762

Financial liabilities 1,038

Operating liabilities 471

Equity 1,295

Financial Assets 176

Current receivables 402

Other fixed assets 266

Goodwill 1,960

Amounts in SEK million

Page 12: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

12

The Regions

North America

Organic growth amounted to 2 % (4 % excluding nonrecurring earnings in 2006)

Decreased demand for print media monitoring

Strong demand for integrated services and analysis services

New version of CisionPoint to be launched in Q3

Rest of Europe

Organic growth amounted to 0 %

Stronger profit and margins due to restructuring process

Stabilization in the UK

Nordic & Baltic

Organic growth amounted to 0 %

Stronger profit and margins

Manual production is being phased out

Page 13: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

13

Restructuring

Restructuring expenses amounted to SEK 29 million (18)

Effects shown in Q2, and further effects by the end of the year

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 170 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.

SEK million 2006 2007 2008 2009

Savings impact 10 75 165 200

Restructuring expenses 57 63 50 –

Net savings -47 12 115 200

Page 14: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

14

Cision today

StrengthsGlobal market leader with a common brand

Unparalleled offering – breadth and depth

Large client base

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 segment

Effects from initiated cost reduction program

Increased synergies within and between regions

Expansions to new markets

Cision is well positioned to capitalize on a growing market.

Page 15: Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007

Niklas Flyborg, Gunilla Rudebjer

July 26, 2007

January - June 2007