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Interim report January – June 2009. Hans Gieskes, CEO and Erik Forsberg, CFO July 23, 2009. 2. Highlights April – June 2009. Positives Strong return to profitability in the Nordic: 10% operating margin in Q2 Divestment of loss-making UK print monitor operations announced
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Interim report January – June 2009 Hans Gieskes, CEO and Erik Forsberg, CFO July 23, 2009
2 Highlights April – June 2009 • Positives • Strong return to profitability in the Nordic: 10% operating margin in Q2 • Divestment of loss-making UK print monitor operations announced • CisionPoint winner of ‘Software Industry Oscar’ – CODiE Award • Negatives • Increasingly negative effect of recession – organic growth decline
3 The Regions • North America • Organic growth -12% in Q2-09, compared to - 9% in Q1-09 and +5% in Q2-08 • CisionPoint sales continue to increase – 48% of US clients now on CisionPoint • Recession impact increasing – but successfully mitigated through cost cuts • Rest of Europe • Organic growth -16% in Q2-09, compared to -12% in Q1-09 and -12% in Q2-08 • UK losses increasing in Q2, but print monitor operations to be divested during Q4 • Germany impacted by recession – address through cost reductions • Solid development in Portugal – high growth and strong margins • Nordic and Baltics • Organic growth +2% in Q2-09, compared to -7% in Q1-09 and +2% in Q2-08 • Solid return to profitability in Q2-2009, after divestment of loss-making business units in Q1-09 • Organic growth and good margins for Finland and Lithuania Monitor and Analyze business • Nordic Plan and Connect experience declining growth, but still good margins
4 Cision Group, January – June 2009 • Notes • Restructuring costs of SEK 15 million during the period (19) • EBIT excluding restructuring costs for Jan-June 2008 also excludes 10 MSEK in 2008 bid process costs • Positive currency impact on EBIT of SEK 20 million
5 Cision Group, April – June 2009 • Notes • Restructuring costs of SEK 6 million during the period (13) • EBIT excluding restructuring costs for April-June 2008 also excludes 10 MSEK in 2008 bid process costs • Positive currency impact on EBIT of SEK 9 million
6 Organic Growth & Operating Margin* (rolling 12 months) * Excluding goodwill impairment, restructuring costs and costs for the April 2008 bid process
7 Operating Cash Flow and EBIT * (rolling 12 months) Amounts in SEK million * Excluding goodwill impairment, restructuring costs and costs for the April 2008 bid process
8 8 Regional Operating Performance • Notes • Operating Profit and Margin excluding restructuring costs
9 9 9 Financial Position Balance Sheet per 30 June 2009 (MSEK) Balance Sheet Key Ratios Cash-Flow (MSEK)
10 2009 Execution Agenda is On Track and Forms Basis For Necessary & Feasible Transformation • Divest structurally unprofitable business operations • Sweden, Norway and Denmark Monitor and Analyze – done in Q1 impact from Q2 • UK Print Monitor – done in July impact from Jan 2010 • Reduce costs to mitigate impact of recession • North America margins 21% for Q2, despite -12% organic growth • 20% less FTE’s employed than at year-end 2008 • Transform Cision’s revenue mix in order to grow share and margins in rapidly changing markets • Continue to Invest in CisionPoint workflow solution and accelerate global roll-out • Invest in high margin Plan and Connect services while de-emphasizing / outsourcing low margin traditional media Monitoring services