year-end report 2014 - cybercom group | a nordic it ... · year-end report 2014 2015-02-13 ......

Year-end report 1

Year-end report 2014

2015-02-13

• Returned to growth with + 6% (-11) organic sales growth for

2014 and 13% (-11) for Q4

• Confirmed strong position in the area of Connectivity

– introducing packaged connectivity assets

• Unique recognition for sustainability, connectivity, and

international labor by the UN and Ban Ki-moon

• Improved financial position and strong equity ratio

of 72.8% (69.7). Net debt was reduced to 6% (10)

• Proposed dividend of SEK 0.05 per share

2014

Gaining market share and pay dividend

2015-02-13 Year-end report 2

• Gaining market shares with

6% (-11) sales increase 2014

and 13% (-11) Q4

• Improved EBIT

2014 Growth and improved Profitability

Year-end report 3

SEK million Q4 2014 Q4 2013 2014 2013

Sales 354.1 313.4 1,262.9 1,195.1

Employees 1,307 1,267 1,307 1,267

EBIT 23.7 22.2 65.8 60.2

EBIT % 6.7% 7.1% 5.2% 5.0%

Profit after tax 18.6 16.3 48.8 41.5

Cash flow 22.1 13.4 52.2 83.2

EPS, SEK 0.10 0.09 0.27 0.23

Equity/assets ratio % 72.8% 69.7% 72.8% 69.7%

2015-02-13

• Strong performance in Finland

• Subcontractors boost growth

• Improved performance in

Sweden, but weak development

in south

Rolling Twelve Months

Year-end report 4 2015-02-13

Cybercom +6%

IT services Sweden +3%

IT Global +2%

Source: Radar, Gartner

Segment Sweden

Year-end report 5

• 9% growth in the quarter and 0.5% 2014

• Visible strategy effects

• Great achievements in Public sector

• Good Key Account development

• New management appointed in south

SEK million Q4 2014 Q4 2013 2014 2013

Sales 250.9 229.8 890.0 885.5

Employees 806 776 806 776

EBIT 19.9 18.5 45.4 45.8

EBIT % 7.9% 8.1% 5.1% 5.2%

2015-02-13

Sweden 70% (73)

Finland 20%(18)

International 10% (9)

SEK million Q4 2014 Q4 2013 2014 2013

Sales 71.1 58.5 251.3 208.1

Employees 250 244 250 244

EBIT 7.8 2.8 18.3 7.7

EBIT % 11.0% 4.7% 7.3% 3.7%

Segment Finland

Year-end report 6

Sweden 70% (73)

Finland 20%(18)


• Strong turn around

• Increased profit 2014 of 138% and good

growth of 21% due to successful business

in the public sector and media

• Still tough business climate, the industry

segment remains restrained

• A number of employees still temporarily laid off

2015-02-13

Segment International

Year-end report 7

• Sales growth in quarter by 27%

• Increased nearshore and growth in Poland

• Growth in Denmark

• Broaden client case in International

Connectivity Management

SEK million Q4 2014 Q4 2013 2014 2013

Sales 44.4 35.0 164.5 142.3

Employees 232 229 232 229

EBIT 2.1 2.7 9.3 10.7

EBIT % 4.8% 7.6% 5.7% 7.5%

2015-02-13

Sweden 70% (73)

Finland 20%(18)


Stable Cash Flow


• Investments related to new Stockholm and Kista offices and Finnish cloud operations

• Interest-bearing liabilities reduced to 69 MSEK (112) and net debt reduced to 56 MSEK (88)

• Net debt/equity ratio 6% (10)

• Unutilised overdraft facility of 100 MSEK

Cybercom Group, SEK million Note

Q4

2014

Q4

2013

Jan - Dec

2014

Jan - Dec

2013

Cash flow before changes in w orking capital 27.4 24.1 78.1 33.6

Changes in w orking capital -5.3 -10.7 -25.9 49.6

Cash flow from operating activities 22.1 13.4 52.2 83.2

Investments in tangible and intangible f ixed assets -7.4 -7.3 -23.2 -14.3

Acquisition in subsidiaries/net assets 3 - - -0.6 -0.7

Other items 0.1 0.0 0.1 0.1

Cash flow from investing activities -7.3 -7.3 -23.7 -14.9

New share issue - - - -0.1

Change in factoring and overdraft facilities - - - -43.4

Change in other f inancial liabilities -11.0 -10.6 -42.6 -21.7

Cash flow from financing activities -11.0 -10.6 -42.6 -65.2

Period's cash flow 3.8 -4.4 -14.1 3.1

Cash and cash equivalents at period's start 7.9 26.6 23.7 20.3

Exchange differences in cash and cash equivalents 2.1 1.5 4.2 0.3

Cash and cash equivalents at period's end 13.8 23.7 13.8 23.7

• Cybercom has improved financial position and stabilised

profitability

• The board will propose that the AGM approve a dividend of SEK

0.05 per share

– equalling SEK 9,021,974.75

– equivalent to 18.5% of net profit

• This level is proposed given that the company's financial targets

have not yet been achieved and that a process of change

continues to meet the financial goals

Dividend


1. Mobile Device Diversity and Management

2. Mobile Apps and Applications

3. The Internet of Everything

4. Hybrid Cloud and IT as a

Service Broker

5. Cloud/Client Architecture

6. The Era of Personal Cloud

7. Software Defined Anything

8. Web-Scale IT

9. Smart Machines

10. 3-D Printing

Top Ten Strategic IT Trends 2015


Strong Position in Connectivity


We assist companies and organisations to benefit from the opportunities of the connected world

Connectivity assets - repetitive packaged solution and profit boost potential

Connected Identity – Cloud – eHealth – Compliance management – CEM

Sales 2014


• The ten largest clients make 38% (43) of sales

• The largest single client is 15% (13) of sales

• Framework agreement clients make 65% (64) of sales

• Major clients are

– Alma Media Group, Cable and Wireless Communication, Ericsson, the Finnish National Board

of Education, Millicom, MTV, the Swedish National Police Board, Saab, Sony Mobile and Volvo

32%

23%

29%

16%

Telecom 32% (36)

Industry 23% (22)

Public Sector 29% (25)

Other 16% (17)

39%

61%

Solution 39% (38)

Competence 61% (62)

70%

42%

46%

6%

6%

Connected Engineering 42% (45)

Digital Solutions 46% (42)

Connectivity Management 6% (8)

Secure Connectivity 6% (5)

• Profitability of EBIT margin of 10%

• Growth of 10% annually over the business cycle

• Acquisition policy

Organic growth and profitability are the key objectives for

Cybercom, but selective acquisitions that create value and

contribute to growth will be assessed against this strategy

• Debt policy

Cybercom shall have net debt that does not exceed 30

percent of equity over time

• Dividend policy

Cybercom shall pay a dividend to its shareholders of at least

30 percent of net profit, provided that no special

considerations exist with regard to the company's financial

position or plans

Financial targets


Stories



Cybercom selected to secure

Swedish and Finnish citizen’s

Digital Identification

Connecting Citizens

Connected Industry


Essential eHealth development


Visit us in Hall 7 – Special invitation for 4 March – Wednesday

• MWC tour with Cybercom

• Increased “Return on Innovation” with open innovation markets, speaker Annika

Steiber. In 2014 she released the book “The Google Model- management for

continuous innovation in a rapidly changing world”. The ability to innovate together with

other persons outside the walls of the company becomes more business critical

important. The only question is what this open innovation means and how to do it in

the best way.

• How to capture value in the connected world and what is required to succeed

– Cybercom’s thought leaders Magnus Karlsson and Peter Tyreholt give advice


• Grow with improved profitability

• Further work to do – focus on Sweden

• Challenging market ahead

• Benefit from our connectivity assets

• Great potential in our unique position in

Secure Connectivity

Going Forward


year-end report 2014 - cybercom group | a nordic it ... · year-end report 2014 2015-02-13 ......

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