ICT Automatisering H1 Results 2015 Jos Blejie (CEO) & Jan Willem - - PowerPoint PPT Presentation

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8/19/2015 Jos Blejie (CEO) & Jan Willem Wienbelt (CFO)

ICT Automatisering H1 Results 2015

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Any forward-looking statements in this presentation refer to future events and may be expressed in a variety of ways, such as “expects”, “projects”, “anticipates”, “intends”

• r other similar words (“Forward-looking statements”). ICT Automatisering N.V.

(“ICT”) has based these forward-looking statements on its current expectations and projections about future events. ICT’s expectations and projections may change and ICT’s actual results, performance or achievements could differ significantly from the results expressed in, or implied by, these forward-looking statements, due to possible risks and uncertainties and other important factors which are neither manageable nor foreseeable by ICT and some of which are beyond ICT’s control. In view of these uncertainties, no certainty can be given about ICT’s future results or financial position. We advise you to treat ICT’s forward-looking statements with caution, as they speak only as of the date on which the statements are made. ICT is under no obligation to update or revise publicly any forward- looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable (securities) legislation.

Analist Presentation H1 2015

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Agenda

Analist Presentation H1 2015

KEY FIGURES AND ACHIEVEMENTS

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OPERATIONAL DEVELOPMENTS

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FINANCIAL RESULTS H1 2015

3

OUTLOOK AND STRATEGY

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Q&A

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Key figures and achievements

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Key Figures H1 2015

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Analist Presentation H1 2015

€ 34.6 M € 32.4 M Revenue : + 7% H1 2015 H1 2014 € 31.8 M € 29.2 M Added Value Revenue: + 9% € 3.2 M € 2.4 M EBITDA: + 33%

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€ 1.5 M € 0.9 M Net profit: + € 600K

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Key Figures H1 2015

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Analist Presentation H1 2015

9.2 % 7.5 % EBITDA % up 170 bp H1 2015 H1 2014 € 4.1 M € 7.0 M Cash per 30/6 695 619 Employees: + 12% (Strypes)

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€ 0.17 € 0.11 Earnings per share: + 54%

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A solid first half of 2015

The transformation of the group’s verticals into smaller units operating closer to the customer has been completed in the first half of the year. Letter of intent signed to acquire Raster All Legal entities contributed to the Group’s result

• ICT Netherlands stable performance

– IA unit suffered from postponement of some larger projects – Less licenses sold

• ICT Nearshoring (Strypes Bulgaria) in line with expectations

– Transaction completed on January 6th – 10% of Revenues coming from new customers derived from synergies with ICT NL

• Improve Quality Services in line with expectations

– Remaining 10% of shares acquired in January

• ICT Poland performed above expectations

– Contract with a main new customer

• InTraffic (50/50 joint venture with Movares) in line with expectations

– Stable result

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Delivery of services to more than 250 customers

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Solutions & Services

Water & Infrastructure Logistics & Transport Automotive & Mobility High Tech Food Chemicals & Pharma Healthcare Energy

Secondment Projects, T&M Safety, security & Sustainability Model based development Smart Manufacturing Smart Cloud Internet of Things Nearshoring Outsourced Services Products & Licences

• Growth strategy via smaller

autonomous market units

• Stimulating entrepreneurship
• Reduced complexity
• Knowledge and development is

stimulated knowledge and shared experiences

Economic Value

Manufacturing

Emerging Solutions

T&M Smart Energy

Operational developments

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Distribution of revenues by category

The transformation towards a better balanced revenue stream is well underway. Focus will be given to higher margin revenues in combination with a well balanced stream of revenues.

Analist Presentation H1 2015

Secondment 50% Projects 36% Services 8% Licenses & Materials 4% Training & Courses 2% Secondment 55% Projects 29% Services 9% Licenses & Materials 6% Training & Courses 1%

H1 2015 H1 2014

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Distribution of revenues by market

As per Q2 2015 ICT has divided its business in more smaller market units to accommodate more flexibility in its operations and have a higher degree of customer intimacy.

Analist Presentation H1 2015

High Technologies 20% Cross Industry Solutions 19% Manufacturing 14% Logistics & Transport 13% Food, Chemical s & Pharma 12% Automotive & Mobility 11% Healthcare 6% Water & Infrastructure 5%

H1 2015 Revenue split Top clients 2015 = 46% of revenue

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ICT Netherlands

Netherlands is confronted with postponement of projects and less sales of materials and licenses

Mixed picture per market unit

• External revenue:

€ 30.1 M (2014: 30.7 M)

• EBITDA:

€ 2.4 M (2014: 2.6 M)

• In the industrial markets we were also confronted with

lower than expected secondment demand from customers

• Productivity – 1.5%
• Growth in staff to 571 (30/6/2014: 567)

Analist Presentation H1 2015

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ICT Nearshoring (Strypes Bulgaria)

ICT closed the transaction of the acquisition of Strypes on January 6.

Strypes performed in line with expectations

• External revenue:

€ 2.5 M

• EBITDA:

€ 0.7 M

• Growth from 54 FTE to 85 FTE ultimo June
• 10% of revenues coming from new customers
• Introduced .NET technology
• Preliminary Price Purchase Allocation performed:

€ 550 k amortization on backlog, € 325 k on customers

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Improve Quality Services

ICT acquired the remaining 10% of the shares in January 2015 and now owns 100% of the company

Improve realised revenue growth of 15%

• External revenue:

€ 1.9 M (2014: € 1.6 M)

• EBITDA:

€ 0.4 M (2014: € 0.2 M)

• New important contract with major Dutch bank

signed

• Better outlook in vulnerable education market

with continuous attention to performance

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ICT Poland

ICT Poland achieved for the first time since its foundation in 2006 a positive result

Growth

• External revenue:

€ 0.5 M (2014: € 0.2 M)

• EBITDA:

€ 0.2 M (2014: - € 0.2 M)

• New important contract with major Japanese

manufacturer

• Working closely together with ICT Netherlands

in the Automotive markets

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Minority stakes

ICT has strategic investments in the form of a joint venture ……

LogicNets

• Software sales of LogicNets were below expectations in H1 2015:

– Longer sales cycles than expected – Postponements of decisions in Netherlands – US sales after slow start of 2015 on track in Q2 – Ramp up of technical experts slower than expected, creating limits to number of parallel projects to handle – Next version of product has delays of 9 months

• Original business plan out of Q4 2014 still stands,

however with a delay of approximately 9-12 months

InTraffic

• Solid first half of 2015
• Small growth

Analist Presentation H1 2015

Financial results H1 2015

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Profit & Loss

Analist Presentation H1 2015

(x € 1,000) H1-2015 H1-2014 Change Revenue 34.575 32.366 6,8% Cost of materials and subcontractors 2.817 3.205

• 12,1%

Added value 31.758 29.161 8,9% Operating expenses

• Personnel Costs

21.624 20.512 5,4%

• Other costs

6.970 6.228 11,9% 28.594 26.740 6,9% Operating profit before amortization and depreciation 3.164 2.421 30,7%

• Depreciation and amortization

1.085 151 618,5% Operating profit 2.079 2.270

• 8,4%

Interest and result from joint venture and associate

• 170

9 Taxes

• 418
• 603

Discontinued operations

• 734

Minority interest

• 14

NET PROFIT 1.491 928

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Balance sheet

Analist Presentation H1 2015

(x EUR 1,000) As at 30 June 2015 As at 31 December 2014 Assets NON-CURRENT ASSETS Property, plant & equipment 1.232 1.246 Software and licences 115 130 Intangible assets 2.925

• Product development

291

• Investment in joint venture

1.324 1.199 Investment in associates 2.078 1.747 Goodwill 12.270 10.881 Deferred tax assets 4.129 4.129 24.364 19.332 CURRENT ASSETS Trade and other receivables 20.622 18.595 Income tax receivable

• 159

Cash and cash equivalents 4.102 11.346 24.724 30.100 49.088 49.432 Equity and liabilities SHAREHOLDERS’ EQUITY 33.421 33.973 NON-CURRENT LIABILITIES 3.401 1.114 CURRENT LIABILITIES 12.266 14.345 49.088 49.432

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Cash flow development

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Ratio's

Analist Presentation H1 2015

x € 1 million First half-year 2015 First half-year 2014 Financial Highlights Revenue 34,6 32,4 Operating profit 2,1 2,3 Amortization / depreciation 1,1 0,2 EBITDA from continuing operations 3,2 2,4 Net profit 1,5 0,9 Ratios EBITDA / net revenue 9,2% 7,5% Net profit / revenue 4,3% 2,9% Net profit / average shareholders’ equity 4,4% 3,1% Solvency (Shareholders' equity / total assets) * 68,1% 68,7% Personnel FTE as at 30 June 695 619 Average number of FTEs for the half-year 685 613 * at 30 June 2015 and at 31 Dec 2014

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Segmentation

Analist Presentation H1 2015

First half year 2015 (X € 1,000)

ICT Netherlands ICT Nearshoring Other Eliminations Consolidated

Revenue 30.093 2.513 2.388 (419) 34.575 Segment Gross profit 8.086 1.229 897

• 10.212

EBITDA 2.390 711 63

• 3.164

Amortization and depreciation 204 876 5

• 1.085

Operating profit 2.186 (165) 58

• 2.079

EBITDA / revenue 7,9% 28,3% 2,6%

• 9,2%

Average number of employees 571 66 48

• 685

First half year 2014 (X € 1,000)

ICT Netherlands ICT Nearshoring Other Eliminations Consolidated

Revenue 30.724

• 1.767

(125) 32.366 Segment Gross profit 8.418

• 568
• 8.986

EBITDA 2.631

• (210)
• 2.421

Amortization and depreciation 148

• 3
• 151

Operating profit 2.483

• (213)
• 2.270

EBITDA / revenue 8,6%

• 11,9%
• 7,5%

Average number of employees 564

• 49
• 613

Strategy and Outlook

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2015 Management Agenda

Analist Presentation H1 2015

People Drive Collaboration

Become employer of choice LogicNets sales outside NL Streamline the organisation Reduce attrition Focus on our themes Continue with reduction of indirect costs program PDP and MDP Broaden portfolio Select partners to fill in ‘white spots’ in our ambition Implementation longterm incentive plan Intense collaboration subsidiaries

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ICT announced acquisition of Raster - July

Raster enriches the portfolio of ICT in industrial automation with new customers in new markets as well as the sales and delivery of IA products

A niche player with global delivery capabilities

• Profitable revenues of approximately € 4.5 M per year
• Dutch based (Dreumel) - approx. 22 fte
• Focus on Oil & Gas, LNG, offshore and heavy duty vessels
• Own developed products
• Global partner of the year at Schneider Electric
• Dealer/importer of IA products

Analist Presentation H1 2015

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ICT announced minority stake in GreenFlux

GreenFlux is a fast growing independent e- charging service platform serving many charging pole providers

In anticipation of growth EV market

• ICT brings in charging pole control unit

software

• ‘Brabantse Ontwikkelings Maatschappij’ is

co-investor

• Obtains a minority stake
• Exclusive development partnership prolonged

with 2 years and extended

• Closing expected October 2015

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Three step approach

Presentation title

Analist Presentation H1 2015

House in order

• Largely completed in 2014
• With the exception of some smaller

elements

• Indirect cost reductions ongoing
• Improve Quality Services continuous

attention

Build

• Simplify the organisation
• Prepare for organic growth:
• Serving promising market/pmc
• Smaller, commerical, more flexible

units

• Invest in replicable solutions and in

vital infrastructure markets

Buy

• Look at candidates operating
• In the area of sustainable and

recurring (by contract) type of businesses to balance the volatile secondment model

• Operating at different customers
• Operating in promising market

segments

Growth is to be found in areas with higher added value :

1. Organic by developing new solutions 2. Organic by acquiring new customers through strategic alliances and partnerships 3. Smaller acquisitions to fill in gaps in either solution or market

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Outlook 2015

ICT continues to execute its strategy:

• Offering innovative and effective product / market solutions
• Combining autonomous growth with growth through acquisitions

ICT expects for 2015 an improvement in EBITDA results from continuing operations in between 25% - 35% compared to 2014

Analist Presentation H1 2015