EVRY ASA Q3 2019 PRESENTATION CEO PER HOVE CFO NINA MORTENSEN - PowerPoint PPT Presentation

EVRY ASA Q3 2019 PRESENTATION CEO PER HOVE CFO NINA MORTENSEN

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

Business highlights Q3 2019  TietoEVRY merger on track EBITA margin of 13.7% in the quarter  Continuing the journey towards becoming a Nordic technology and 2.5% organic growth (2.9% ex. Fulfilment) consulting powerhouse Cash conversion of 90.5%  Strategic direction shows results  Good traction in Financial Services  Improvement in EVRY Sweden  Data Driven Services on target 3

Group highlights Q3 2019 Strong growth in strategic area combined with solid EBITA EBITA 2 (NOKm) REVENUE (NOKm) EPS 2 0.67 3 092 422 Q3 2019 CASH CONVERSION ORGANIC GROWTH 1 EBITA MARGIN 2 (LTM) 2.5% (2.9% 3 ) 13.7% 90.5% EBITA 2 (NOKm) REVENUE (NOKm) EPS 2 1.73 9 599 1 108 YTD 2019 ORGANIC GROWTH 1 EBITA MARGIN 2 BACKLOG (NOKbn) 0.9% (3.2% 3 ) 11.5% 16.7 1) ADJUSTED FOR CURRENCY EFFECTS, ACQUISITIONS AND DIVESTMENTS 4 2) BEFORE OTHER INCOME AND EXPENSES 3) EXCLUDING FULFILMENT

Business update

Business update TietoEVRY merger on track • The extraordinary general assemblies of both EVRY and Tieto have approved the merger • Transaction still pending approval by competition authorities in the countries involved • TietoEVRY Group leadership and operating structure announced • Closing expected in Q4 2019 or Q1 2020 at the latest Managing Partner Head of HR Managing Partner Head of Strategy Managing Partner CEO CFO Finland Trond Vinje Sweden Kishore Norway Kimmo Alkio Tomi Hyryläinen Satu Kiiskinen Karin Schreil Ghadiyaram Christian Pedersen Integration Officer Head of Digital Head of Industry Head of Financial Head of Operations Head of PDS Head of Malin Fors- Consulting Software Services Ari Järvelä Tom Leskinen Cloud & Infra Skjæveland Thomas Nordås Christian Segersven Wiljar Nesse Johan Torstensson 6

Business update Leveraging the advantages of being a Nordic digital consulting powerhouse Key figures Achievements Customers Application management & advanced analytics to large Norwegian Cross-Nordic organisation established 32% of group Enterprise revenues More than 200 consultants onboarded in Q3 5.5% organic growth Positive results from seven practices Increase in employee engagement 2 206 digital consultants 7

Business update Sweden - Shaping up to take a position in consulting Key figures Achievements Customers 22% of group revenues Growing IT market in Sweden Consistent incorporation of seven practices in Sweden 5.4% EBITA margin Clearer and sharper consulting offering -2.3% organic growth 8

Business update Financial Services – Delivering on ambition in the Nordic and European markets Key figures Achievements Customers Strong demand across solutions and service areas Nordic-wide 27% of group revenues agreement delivering Handelsbanken Norway first bank to launch EVRY’s new cards and mobile financial platform for corporate customers payments 14.5% EBITA margin Continued strong market interest for card and mobile Agreement payment services delivering cards to one of the largest banks in Sweden Customers seek partnerships with service providers that 11% can deliver full value chain of card payment solutions growth 1 9 1) Application Services

Finance Assistant • Financial Services is currently testing out the Finance Assistant conversational banking platform with prospective customers • Dialogue-based digital self-service • EVRY offers the only platform that directly combines chat/voice with banking services and infrastructure (enterprise ready) • EVRY’s aim is to be the best strategic choice for conversational banking in the Nordics 10

Business update Attractive employer brand in competitive market 917 hires in 2019 YTD - 180 graduates • Norway’s largest employer for women in tech • > 1000 Norway’s most gender-balanced IT company • (She Index) EVRY ranked #1 by “Young Professionals” in • Sweden EVRY ranked 4 th most attractive IT • consultancy firm among Norwegian students (Universum, Q2) Still strong employee engagement – all-time • high in T2 2019 11

Financial highlights

Group financial highlights FINANCIAL EVRY GROUP NORWAY SWEDEN SERVICES Organic growth Q3 2019 Q3 2019 YTD 2019 Q3 2019 YTD 2019 Q3 2019 YTD 2019 Q3 2019 YTD 2019 REVENUE Consulting 3 092 9 599 1 409 4 329 695 2 278 867 2 616 NOKm Services 5.5% ORGANIC 2.5% 0.9% 6.4% 1.0% -2.3% -4.0% 6.4% 5.6% GROWTH 1 Application Services EBITA 2 9.2% 422 1 108 167 453 38 106 126 339 NOKm Digital EBITA Platform 13.7% 11.5% 11.9% 10.5% 5.4% 4.6% 14.5% 13.0% MARGIN 2 Services -0.2% CASH CONVERSION FREE CASH FLOW (FCF) EPS 2 BACKLOG Fulfilment Services 90.5% LTM Sep’19 NOK 139m Q3’19 NOK 0.67 Q3’19 NOK 16.7 30 Sep’19 -2.8% 1) ADJUSTED FOR CURRENCY EFFECTS, ACQUISITIONS AND DIVESTMENTS 2) BEFORE OTHER INCOME AND EXPENSES 13 * ALL FIGURES INCLUDING CASH CONVERSION, FCF, EPS AND BACKLOG ARE COMPARED YEAR-ON-YEAR

Continued growth in the third quarter (2.9% 2 ) 4.0% 3.6% (3.2% 2 ) Organic 2.5% 0.4% growth 1 -3.4% 0.9% 3.9% 0.8% 3.0% Revenue NOKm 13 013 12 912 9 599 9 499 3 413 3 330 3 178 3 092 3 005 Period Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 YTD’19 YTD’18 LTM’19 FY’18 1) ORGANIC GROWTH: ADJUSTED FOR CURRENCY EFFECTS, ACQUISITIONS AND DIVESTMENTS 14 2) EXCLUDING FULFILMENT

Sustained revenue growth in Norway and Financial Services Organic Organic 2.5% growth 1 growth 1 3 092 9 599 9 499 3 005 -2.3% +6.4% +1.0% -4.0% +6.4% +5.6% 695 2 278 734 2 409 Revenue Revenue split split 1 409 NOKm 4 329 1 324 NOKm 4 287 813 867 2 616 2 479 Quarter Q3’18 Financial Norway Sweden Q3’19 First six YTD’18 Financial Norway Sweden YTD’19 months Services Services Sweden Norway Financial Other Services 15 1) ORGANIC GROWTH: ADJUSTED FOR CURRENCY EFFECTS, ACQUISITIONS AND DIVESTMENTS

Change in service mix according to plan QUARTER 4.2 Consulting 26.4 Services 30.9% 31.9% 35.9 5.5% Application 63.7 Services 28.7 9.2% 31.7% 23.0 32.6% Digital Platform Services 29.3 -0.2% 32.6 30.0% 28.6% 32.1 Fulfilment Services 15.6 8.5 -2.8% 7.4% 6.9% Q3’18 Q3’19 Norway Sweden Financial Services Organic growth Q3’19 Q3’19 Q3’19 Q3’19 Consulting Services Application Services Digital Platform Services Fulfilment Services 16

Continued growth in consultancy and application services in line with strategy YEAR TO DATE 4.9 Consulting Services 30.7 32.3% 33.8% 38.5 5.0% Application 63.2 Services 27.7 7.9% 30.9% 23.1 32.3% Digital Platform Services 28.5 -0.1% 30.8 28.4% 27.7% 31.9 Fulfilment Services 13.1 -24.2% 8.4% 7.6 6.2% Norway Sweden Financial Services Organic growth YTD 2018 YTD 2019 YTD 2019 YTD 2019 YTD 2019 YTD’19 Consulting Services Application Services Digital Platform Services Fulfilment Services 17

Solid EBITA margin – Strong performance by Financial Services and Norway EBITA 13.7% 13.9% 13.7% margin 1 11.2% 11.5% 10.0% 11.7% 12.2% 12.3% 1 583 1 582 EBITA 1 NOKm 1 108 1 107 475 413 422 354 332 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 YTD ’19 YTD ’18 LTM’19 FY ’18 Quarter/ YTD 18 1) EBITA: BEFORE OTHER INCOME AND EXPENSES

Implementation of strategy reverses previous quarter’s negative development in Sweden 16.6% Financial Services EBITA margin 1 14.5% 13.9% Group 13.7% 13.5% 13.7% 12.5% 12.3% 11.9% Norway 11.4% 10.6% 10.4% 10.0% 10.3% 9.0% 9.1% 6.2% 5.4% 4.9% Sweden 4 3.8% Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 19 1) EBITA: BEFORE OTHER INCOME AND EXPENSES

Other income and expenses impacted by merger cost OIE with cash flow effect (NOKm) OIE with P&L effect (NOKm) 1 215 Sharebased options (STIP) 1 767 Payments related to 33 Other restructuring processes 195 Restructuring Merger cost, transaction costs, IPO 241 and refinancing Merger costs, transaction cost 343 IPO and refinancing Payment related to former CEO Provisions to former CEO Payments related to IBM partner agreement 1 014 IBM partner agreement 560 368 15 661 941 375 51 1 229 82 22 26 299 78 11 545 47 21 229 595 557 33 250 241 61 15 120 Year FY 2016 FY 2017 FY 2018 YTD 2019 FY 2016 FY 2017 FY 2018 YTD 2019 20