EVRY ASA Q3 2018 PRESENTATION CEO BJRN IVROTH CFO HENRIK SCHIBLER - PowerPoint PPT Presentation

EVRY ASA Q3 2018 PRESENTATION CEO BJÖRN IVROTH CFO HENRIK SCHIBLER 1

Agenda Group highlights  Business update  Financial highlights  Business area performance  Concluding remarks  Q&A  2

Group highlights Q3 2018 REVENUE ADJ. EBITA BACKLOG (NOKm) (NOKm) 2 (September NOK bn) 3 005 413 17.8 FINANCIALS ACQUISITION ORGANIC GROWTH 1 EBITA MARGIN 2 4.0% 13.7%  Positive revenue momentum and sustainable margins driven by high activity within Application Services, especially Financial Services  Utilisation in Norway in line with 2017, while performance in Sweden is lagging somewhat due to recruiting challenges BUSINESS  Other income and expenses reduced by NOK 102m from Q3 2017 (NOK 355m YTD) 3 and trading according to plan UPDATE  Stable order intake of small and medium sized contracts during the quarter provides basis for maintaining a strong backlog  LTM cash conversion of 82.8% and Adjusted EPS 2 of NOK 0.79 in Q3 2018 (NOK 1.87 YTD) 1) ADJUSTED FOR CURRENCY EFFECTS, ACQUISITIONS AND DIVESTMENTS 2) BEFORE OTHER INCOME AND EXPENSES 3 3) T&T IBM PARTNER AGREEMENT

Business update 4

EVRY – Aspired position Deliver on desired business outcomes for our customers Industry specific Domain specific and capabilities horizontal capabilities Ensuring critical mass, Solutions for key scale and efficiency Creating industries Digital Advantage across customer segments for tomorrow’s Leaders Customer needs  Strengthen Customer Relationships  Engage Employees  Renew Processes  Modernize Systems 5

Success in the Financial Services segment based on industry expertise and integrated service offerings Financial Services Industry EVRYs number one position within the Financial Expertise Services segment in the Nordics is achieved through: Custom  Industry insight and expertise acquired over many Solutions years Channels Integrated  Integrated service offerings and EVRY proprietary IP Service Offerings software solutions built on the own IPR based core Cards banking and payment platform Payment & Security  A unique position and experience built within the ATM and Cards segments Core Operations 6

Focus on industry expertise, and ensuring scale and efficiency cross customer segments Public & Health Retail & Logistics Industries & Services SME  Targeted ‘go-to-market’ for select industry segments Industry Industry Industry Industry  Utilizing EVRYs local Expertise Expertise Expertise Expertise market presence to reach the sizable SME-segment  Organizing for critical Digital Digital Digital Digital mass in relevant Consulting Consulting Consulting Consulting competence areas Services Services Services Services  Increasing efficiency and Digital Digital Digital Digital scalability through Application Application Application Application repeatable concepts and Services Services Services Services delivery models  Internal fine-tuning of Digital Digital Digital Digital organization for combining Platform Platform Platform Platform industry specialization with Services Services Services Services a scalable service model 8

Focus on industry expertise, and ensuring scale and efficiency cross customer segments The Nordics Public & Health Retail & Logistics Industries & Services SME  Targeted ‘go-to-market’ for select industry segments Industry Industry Industry Industry  Utilizing EVRYs local Expertise Expertise Expertise Expertise market presence to reach the sizable SME-segment  Organizing for critical Digital Digital Digital mass in relevant Consulting Digital Consulting Services Consulting Consulting competence areas Services Services Services  Increasing efficiency and Digital Digital Digital scalability through Application Digital Application Services Application Application repeatable concepts and Services Services Services delivery models  Internal fine-tuning of Digital Digital Digital organization for combining Platform Digital Platform Services Platform Platform industry specialization with Services Services Services a scalable service model 9

EVRY strengthens focus on health technology across the Nordic region EVRY is a future-oriented Healthcare technological partner with:  Specialist solutions based on own IP  Partnership with leading suppliers  Deep business knowledge  e-Health solutions and skills  Generic IT services, outsourcing, BI, change and project mgt.  Skills and expertise s By acquisition of Exonor EVRY will:  Strengthen industry-specific and specialist expertise and increase capabilities, which mean:  Stronger driver of digitalisation and modernisation for customers  Joint forces: A strong team dedicated to provide patients and HC professionals with the best digital services available

Financial highlights 11

Group financial highlights FINANCIAL EVRY Group NORWAY SWEDEN SERVICES Q3 2018 YTD 2018 Q3 2018 YTD 2018 Q3 2018 YTD 2018 Q3 2018 YTD 2018 Consulting REVENUE 3 005 9 499 1 324 4 287 734 2 409 813 2 479 Services NOKm -1.5% ORGANIC ORGANIC GROWTH Q3’18 4.0% 3.9% 0.0% 0.9% -0.5% -0.6% 7.3% 6.5% GROWTH 1 Application Services 8.3% EBITA 2 413 1 107 137 423 66 193 135 333 NOKm Digital Platform EBITA 13.7% 11.7% 10.3% 9.9% 9.0% 8.0% 16.6% 13.4% Services MARGIN 2 -0.1% CASH CONVERSION FREE CASH FLOW EPS 2 BACKLOG Fulfilment Services 20.9% 82.8% LTM Sep.18 NOK 34m Q3’18 NOK 0.79 Q3’18 NOK 17.8bn 30 Sep.18 1) ADJUSTED FOR CURRENCY EFFECTS, ACQUISITIONS AND DIVESTMENTS 12 2) BEFORE OTHER INCOME AND EXPENSES

The third quarter continued with solid growth Revenue and organic growth 2018 vs. 2017 LTM revenue Q3 2017 – Q3 2018 Organic growth 1.9% 3.7% 0.5% 7.5% 4.0% 1.9% 3.9% +2.1 p.p. 12 912 9 499 9 183 12 824 12 627 12 596 3 413 3 286 3 208 12 422 3 005 2 917 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 YTD’17 YTD’18 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 13 ORGANIC GROWTH ADJUSTED FOR CURRENCY EFFECTS, ACQUISITIONS AND DIVESTMENTS

Profitability year to date is steady, despite EBITA margin somewhat reduced q/q primary in Sweden EBITA margin 1 2018 vs. 2017 LTM EBITA 1 Q3 2017 – Q3 2018 % LTM margin +0.5 p.p. -0.3 p.p. 11.9% 12.5% 12.2% 12.5% 12.4% 0.0 p.p. 14.5% 14.0% 13.7% 1 602 1 597 1 569 11.7% 11.7% 1 544 11.4% 1 477 10.0% Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 YTD’17 YTD’18 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 14 1) BEFORE OTHER INCOME AND EXPENSES

Other income and expenses (OIE) related to the T&T project are slowing down and on track with schedule 443 OIE with P&L effect 55 Other 298 Restructuring 261 33 Transaction costs, 213 31 IPO and refinancing 184 3 389 153 9 IBM partner 35 agreement 4 87 230 210 56 48 136 40 125 123 4 112 108 7 21 11 41 36 31 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 OIE with cash flow effect 581 60 Payments related to restructuring processes 465 32 Transaction costs, IPO 404 188 and refinancing 96 65 317 307 Payments related to 10 267 39 IBM partner agreement 238 238 49 119 179 115 74 74 160 14 333 338 6 6 329 29 2 10 27 110 12 230 18 174 158 158 150 140 121 92 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 15 OIE: OTHER INCOME AND EXPENSES

Relevant products and solutions in Financial Services drive the growth in Application Services Consulting Services Application Services Digital Platform Services Fulfilment Services 5% Consulting Services -1.5% 29% 31% 32% 34% ORGANIC GROWTH Q3’18 Application Services 61% 8.3% 27% 23% 32% 31% Digital Platform Services -0.1% 29% 34% 30% 31% Fulfilment 34% Services 15% 20.9% 9% 7% 6% Q3’17 Q3’18 Norway Sweden Financial Services Q3’18 Q3’18 Q3’18 16

Free cash flow and cash conversion exposed to period end on a weekend Cash 84.1% 91.6% 70.3% 78.3% 82.8% conversion  Free cash flow in Q3 2018 ended at NOK 34m (vs. NOK -29m in Q3 2017) 950 913 LTM 887  Q3 2018 ended on a weekend as the fifth quarter in a row FCF 621 572  The major part of EVRYs receivables have due date the last day in the month, which implies that several customer Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 payments fell overdue Quarter end on Yes Yes Yes Yes Yes weekend/ holiday 17

Increased gearing driven by unfavourable intra quarter working capital outflow Net leverage multiples 1 2.63x 2.56x 2.55x 2.38x  Net interest bearing debt as of end September 2.09x of NOK 4.8bn. 4 807 4 689 NIBD 2 4 413 4 247  Draw down on the RCF at quarter end due to 3 807 timing of tax/ social tax payments Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 1) NIBD/ LTM EBITDA BEFORE OTHER INCOME AND EXPENSES 2) NIBD = NET INTEREST-BEARING DEBT (REPRESENT CURRENT AND NON-CURRENT INTEREST-BEARING LIABILITIES (BEFORE ADJUSTMENTS FOR CAPITALISED ARRANGEMENT FEES) LESS BANK DEPOSITS) 18