Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007.
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Transcript of Niklas Flyborg, Gunilla Rudebjer July 26, 2007 January - June 2007.
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
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
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
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
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
7
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)
8
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)
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
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
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
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
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
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.
Niklas Flyborg, Gunilla Rudebjer
July 26, 2007
January - June 2007