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January - September 2007. Niklas Flyborg, Gunilla Rudebjer October 25, 2007. Highlights January – September 2007. CisionPoint launched in the US Market success within prioritized areas Strong growth in analysis services Important client wins in the Nordic region
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January - September 2007 Niklas Flyborg, Gunilla Rudebjer October 25, 2007
Highlights January – September 2007 • CisionPoint launched in the US • Market success within prioritized areas • Strong growth in analysis services • Important client wins in the Nordic region • Coding tool launched in the US • Continued improved market share within Plan and Connect in the Nordic region • New IR analyses services launched • Manual production in Nordic region is being phased out • Restructuring in the UK proceeds according to plan
Market • Generally good market conditions but increasing competition in all service areas • New media and technology change media habits • New market roles • Information is accessible and free • Publishers seek new revenue streams as print media declines in relative importance • Opportunities in mediating information • Growing importance of reputation and brands drive demand • Rising demand for solutions with analyzed information • Growing demand within international client segment • Consolidation will continue and increase, mainly driven by technological shift (digitalization), internationalization of industry and lack of critical mass amongst regional competitors
Media Habits – the Internet as a complement to other sources
Market • Generally good market conditions but increasing competition in all service areas • New media and technology change media habits • New market roles • Information is accessible and free • Publishers seek new revenue streams as print media declines in relative importance • Opportunities in mediating information • Growing importance of reputation and brands drive demand • Rising demand for solutions with analyzed information • Growing demand within international client segment • Consolidation will continue and increase, mainly driven by technological shift (digitalization), internationalization of industry and lack of critical mass amongst regional competitors
Cision - operator and distributor • Publisher: • Finds new revenues • Reaches new target groups • Operator (Atodia): • Profits on production, technology and • on being the access point for content • Distributor: • Cost rationalization • Focus on Business Development Digital content allows business development opportunities and new target groups. Through Atodia, Cision realizes this market potential
Market • Generally good market conditions but increasing competition in all service areas • New media and technology change media habits • New market roles • Information is accessible and free • Publishers seek new revenue streams as print media declines in relative importance • Opportunities in mediating information • Growing importance of reputation and brands drive demand • Rising demand for solutions with analyzed information • Growing demand within international client segment • Consolidation will continue and increase, mainly driven by technological shift (digitalization), internationalization of industry and lack of critical mass amongst regional competitors
January – September 2007 • Restructuring expenses of SEK 29 million (35)
July – September 2007 • Restructuring expenses of SEK 0 million (16)
Organic Growth & Operating Margin* (rolling 12 months) * Excluding write-down goodwill and restructuring expenses
Operating Cash Flow and EBIT * (rolling 12 months) Amounts in SEK million * Excluding write down of goodwill and restructuring costs
Balance Sheet September 30, 2007 Financial Assets, 166 Current receivables, 368 Other fixed assets, 261 Goodwill 1 883 Financial liabilities 967 Operating liabilities 438 Equity 1 273 Working capital: -70 Equity / Assets ratio: 48% Debt / Equity ratio: 57 % Net debt: 728 Amounts in SEK million
The Regions • North America • Organic growth amounted to 6 % in Q3 • New generation of CisionPoint launched • Strong demand for integrated services and analysis services • Rest of Europe • Organic growth amounted to -1 % in Q3 • Development of the large and international client segment has begun in the UK • Efficiency improvements have led to cost savings • Nordic & Baltic • Organic growth amounted to -1 % in Q3 • Revenue loss due to the phase out of non-strategic services • Phase-out of manual production
Restructuring • Restructuring expenses amounted to SEK 29 million (35). • 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 150 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. Earlier estimates in parentheses.
Cision today • Strengths • Global market leader with a common brand • Unparalleled offering – breadth and depth • Software as a Service platform • New IR analyses • Large client base • 30 000 clients world-wide • Prime position in North America – the leading media market in the world • Strong cash flow Opportunities • Strong growth in international client segment • Strong position within our client segment • Gaining market shares within Plan and Connect • Effects from initiated cost reduction program • Increased synergies within and between regions • Expansions to new markets • Establishment in Asia in Q2 • Cision is well positioned to capitalize on a growing market.