3Q02 General market comments Difficult business climate Especially - PowerPoint PPT Presentation

Visual Management 3Q02

General market comments Difficult business climate Especially in Oslo and Stockholm September did not contribute as much as usual to 3Q July and August were summer-quiet, but normal Visma has been cautious and cost- focused and achieved satisfactory profits in spite of the difficult market. Focus on cash-conservation and balance sheet control have contributed positively

Results 3Q02 3Q01 Visma as reported group 248 209 + 19 % Revenue 33,2 23,4 + 42 % EBITDA 13,4 % 11,2 % EBITDA % 17,1 13,5 EBIT 6,9 % 6,5 % EBIT % 5,3 6,5 N et financial 22,4 20 EBT 23,7 8,5 N et profit 0,71 0,25 + 184 % EPS, N OK

YTD3Q02 YTD3Q01 Visma as reported group 854 583 + 46 % Revenue 112,2 64,7 + 73 % EBITDA 13,1 % 11,1 % EBITDA % 63 39 EBIT 7,4 % 6,7 % EBIT % 18,8 29,7 N et financial 81,6 68,6 EBT 83,7 43,5 + 92 % N et profit 2,51 1,44 + 74 % EPS, N OK

Per line of business 2001 pro forma 3Q2002 3Q2001 Revenue EBITDA EBIT EBITDA EBIT Revenue Revenue EBITDA EBIT EBITDA EBIT margin margin Growth margin margin Visma Software 107 25,2 17,8 24 % 16,6 % -13 % 123 18,9 10,3 15 % 8,4 % Visma Services 140 11,4 2,7 8 % 1,9 % 0 % 140 16,6 8,5 12 % 6,1 % Tot op. Units. 248 36,6 20,5 15 % 8,3 % -6 % 263 35,5 18,8 13 % 7,1 % Visma ASA 0 -3,4 -3,4 0,2 -1,5 -1,5 Total 248 33,2 17,1 13,4 % 6,9 % -6 % 263,2 34 17,3 12,9 % 6,6 % Strong margin improvement in Software. Slower growth in Services

Pro line of business, 9 months 2002. 2002 actual figures 2001 pro forma YTD 3Q 2002 YTD 3Q 2001 Revenue EBITDA EBIT EBITDA EBIT Revenue Revenue EBITDA EBIT EBITDA EBIT margin margin Growth margin margin Visma Software 385 70 46 18 % 11,9 % -10 % 427 63 36 15 % 8,4 % Visma Services 469 52 27 11 % 5,8 % 11 % 421 46 23 11 % 5,4 % Tot op. Units. 854 122 72,9 14 % 8,5 % 1 % 848 109 58 13 % 6,9 % Visma ASA 0 -10 -10 1 -7 -7 Total 854 112 63 13 % 7,4 % 1 % 849 102 51 12 % 6,0 % YTD EBITDA margin is 13% vs 12% in 2001

Visma Software per market, 3Q02 EBITDA Revenue EBITDA Revenue EBITDA margin growth RevenueEBITDA margin Norway + DK 54,7 14,6 27 % -2 % 55,7 2,6 5 % Sweden 39,3 8,9 23 % -9 % 43,3 9,5 22 % Finland 13,3 1,7 13 % -44 % 23,8 6,8 29 % Visma Software 107,3 25,2 23 % -13 % 122,8 18,9 15 % Full effects of cost-synergies in Norway from merger with SPCS +5% growth in new licence sales in Norway Decline in Sweden is due to currency translation. Margin improvement in Finland due to strong cost-control

EBITDA margin per division (2001 comparable, proforma figures) 25 % 20 % 15 % Software Services 10 % 5 % 0 % 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 EBITDA margin Visma group (2001, proforma comparable figures) 14 % 12 % 10 % 8 % 2001 2002 6 % 4 % 2 % 0 % 1Q 2Q 3Q 4Q

Comments on Visma Services Disappointing growth and results: Effects from reduced volume from IT sector Normal seasonality MNOK 15 on centralised ERP project in 2002 2 nd half of 2002 is the most intensive face of automation and integration project Will create new business opportunities for 2003 Integration of acquired companies are on track

Comments on Visma Software Margins and profits higher than expected Organic growth in new license sales in both Norway and Sweden Visma Global and Salesoffice well received Margin improvement in Finland SPCS and Visma fully integrated, cost synergies are now visible

Equity and total assets 1500000 80 % 70 % 60 % 1000000 50 % 40 % 30 % 500000 20 % 10 % 0 0 % 3Q97 3Q98 3Q99 3Q00 3Q01 3Q02 53455 107017 159344 232987 585491 955383 Equity 135884 175343 217040 316198 1031178 1341889 Tot assets 39 % 61 % 73 % 74 % 57 % 71 % Equity % Net cash: MNOK 487 (473 in 2001 ) + shares in Superoffice for MNOK 17 + Visma Shares for MNOK 3,5 (108923 shares) Accounts rec (net ex vat): MNOK 115 (103 in 2001 ) (Down from MNOK 160 in 1Q02) DSO: 42 days (45 days in 2001 )

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MyVisma.no • Web-based services (Browser and the internet) •Visma Netaccount; accounting reports, sales accounts •Visma Travel Expense; Travel expense •Visma TimeEase; project, time collection • Visma Prokasso / Visma WebTemp • On-line services (Visma Business with ASP technology) •Visma On-Line; shared access / shared value •Visma Compello; document scanning

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Forecast 4Q02 Short term, general market improvement is not expected Normally, 4Q is a healthy for Software. EBITDA margin targets (16-19%) will be achieved for 2002 Services will not achieve 15-18% organic growth for the full year 2002. 8-10% revenue growth is more likely Full year EBITDA margin is expected at 10-11% Visma is a profitable and cash-flow positive company, At least MNOK 100 net profit after tax for 2002

Forecast 2003 Based on an assumption that the business climate continue as today, Visma targets are: Organic growth: Software: 0-5% Services: 5-10% EBITDA margins: Software to improve by 2% over 2002 Services to improve by 1% over 2002