Presentation for investors Presentation for investors Results for - - PowerPoint PPT Presentation

Presentation for investors Presentation for investors

Results for the First Half of 2011

Nýherji hf.

• 28. July 2011

1 Introduction 2 Financials 3 Outlook

Nýherji hf. presentation for investors

EBITDA was ISK 300 million for the first half of the year

EBITDA was ISK 300 million for the first half of the year

• ISK 158 million the corrsponding period last year
• All organizational units provide positive EBITDA

EBITDA ratio was 3.90% as compared to 2.2% last year Revenues have increased by about ISK 631 million, or 9%, from the Revenues have increased by about ISK 631 million, or 9%, from the previous year Net profits totalled ISK 78 millions for the first six months of the year Organizational changes in Iceland during Q2 reduced the number of

• perating companies from eight to three

New organizational structure for domestic operations

A new organizational structure for Nýherjis domestic operations took effect on 1st of April Three of Nýherjis subsidiaries merged with the parent company: The hosting and managed service company Skyggnir ehf., Sense ehf., which specialises in audio and video solutions, and Viðja ehf. The software companies Vigor ehf. and Applicon ehf. merged under the name of Applicon The software companies Vigor ehf. and Applicon ehf. merged under the name of Applicon ehf.

Vigors solutions become part of Applicons solutions portfolio

TM Software ehf., which works in software development and EMR ehf., which owns and developes a medical record system and other solutions in the health industry, merged under the name of TM Software ehf.

The medical record system of EMR becomes part of TM Softwares solutions portfolio

New organizational structure for domestic operations

Why change the structure?

Merging companies in related operations and building bigger business units The aim of the changes is to gain competitive advantage and improve the companies unique position in domestic markets as well as to strengthen the service offerings to the customers

Improved performance of IT services after structural changes

Sofware and hardware sales at Nýherji hf. were above projections and exceeded the levels achieved at the same time last year

• Considerable increase in the sale of IBM Power servers and

IBM disk and storage solutions

Sales of Sony and Canon consumer products were robust robust The merger of Skyggnir with Nýherji s other operations will improve the performance of this devision The competitive environment for hosting and managed services is very challenging in domestic markets

• Stiff price competition with businesses that were propped up

by Icelandic banks or are controlled by holding companies now in the hands of creditors after going through bankruptcy

Implementation of a SAP-based banking solution marks a turning point

Applicon ehf. performed in line with projections

• Outlook is good for the second half of the year

Applicon in Sweden signed a contract for the sale and implementation of a new SAP–based banking solution for a medium-sized bank in Sweden

• The implementation marks a turning point for Applicon
• The implementation marks a turning point for Applicon
• Implementation of the PeTra software for Carnegie, SEB

and Nordea

• Applicon Sweden performed above projections

The performance of Applicon A/S Denmark was in line with projections

• Ongoing large implementation for Region Hovedstaden
• Demand for business software and related services is

still limited in Denmark

Sales of TM Software s solutions in North America

TM Software ehf. performed better than over the same period last year

• Growth in sales of internally developed software

solutions in North-America and Europe

• Tempo software
• Continuous development of software for the health
• Continuous development of software for the health

industry

• Good project pipeline

Dansupport A/S in Denmark posted positive EBITDA

• The Danish economy is recovering at a slower pace

than the other Nordic countries

1 Introduction 2 Financials 3 Outlook

Nýherji hf. presentation for investors

Income statement Q2 2011

In ISK millions

Q2 2011 % of sales Q2 2010 % of sales Sales of goods and services .........…. 3,977 100% 3,529 100% COGS .......……………………………. (1,939) (49%) (1,575) (45%) Gross profit ........……………………. 2,038 51% 1,954 55% Salary and related expenses ..……… (1,490) (38%) (1,462) (41%) Salary and related expenses ..……… (1,490) (38%) (1,462) (41%) Other operating expenses ....……….. (408) (10%) (369) (10%) Depreciation .......……………………... (71) (2%) (76) (2%) Operating profit (loss) (EBIT) ...….. 69 2% 47 1% EBITDA ……………………………….. 140 4% 123 3%

Income statement First Half 2011

In ISK millions

1.1.-30.6 2011 % of sales 1.1.-30.6 2010 % of sales Sales of goods and services .........…. 7,670 100% 7,039 100% COGS .......……………………………. (3,590) (47%) (3,077) (44%) Gross profit ........……………………. 4,080 53% 3,962 56% Salary and related expenses ..……… (2,963) (39%) (2,975) (42%) Salary and related expenses ..……… (2,963) (39%) (2,975) (42%) Other operating expenses ....……….. (817) (11%) (829) (12%) Depreciation .......……………………... (134) (2%) (142) (2%) Operating profit (loss) (EBIT) ...….. 166 2% 16 0% EBITDA ……………………………….. 300 4% 158 2%

0% 4% 8% 12% 16% 2500 3000 3500 4000 4500 illions

Sales continue to be good

• 20%
• 16%
• 12%
• 8%
• 4%

500 1000 1500 2000 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 ISK mill Sales EBIT% EBITDA%

EBITDA higher than same quarter last year

2% 4% 6% 8% 50 100 150 200 illions

• 6%
• 4%
• 2%

0%

• 150
• 100
• 50

Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 ISK mill EBITDA EBTIDA%

EBITDA – foreign and domestic operations

80 120 160 200 illions 80 120 160 200 illions

• 120
• 80
• 40

40 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 ISK mill Foreign operations

• 120
• 80
• 40

40 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 ISK mill Domestic operations

Balance sheet 30.06.2011

In ISK millions

30.06.2011 31.12.2010

Non-current assets ……………………………….... 4,405 4,292 Current assets .....………………………………….. 3,821 3,688 Total assets ....…………………………………...... 8,226 7,981 Equity ..…………………………………………….... 2,384 2,420 Equity ..…………………………………………….... 2,384 2,420 Non-current liabilities ..……………………………. 2,318 2,374 Current liabilities ...…………................................. 3,524 3,187 Total equity and liabilities ..…………………….. 8,226 7,981 Current ratio ...……………………………………... 1.08 1.16 Equity ratio .....…………………………………....... 29.0% 30.3%

1 Introduction 2 Financials 3 Outlook

Nýherji hf. presentation for investors

Outlook

The project pipeline for the software companies is good and expecting further growth Good sales prospects for internally developed software packages: TEMPO, PeTra, iBank and APS Sales of computer equipment to the business market have been growing and many companies will need to update their computer equipment The market for managed and hosting services is still challenging

Outlook: Stable operating performances and growing revenues

Nýherji s operating performance is stable and revenues are growing Over the past twelve months the EBITDA was ISK 660 million was ISK 660 million Expectations are that the second half results will be at least as good as those of 2010

Q & A

Nýherji hf. presentation for investors