Vitec Software Group Vertical Market Software Lars Stenlund, VD Vitec Software Group AB (publ)
Vitec Short Facts VITEC SHORT FACTS Software company with industry-specific solutions Founded in 1985 by Lars Stenlund and Olov Sandberg Annual Turnover of SEK 316 million in 2010 Operating Profit of SEK 20 million in 2010 Number of employees approx. 300, with 90% in Sweden Active in five customer areas/(Vertical Markets) Seven offices in Sweden, one in Oslo and one in the U.S. Listed on NASDAQ OMX, Stockholm (Small Cap) Aprox.1 500 shareholders Vitec Software Group AB (publ)
Offering Unique Offering We focus on industry-specific business systems that are more cost effective than general solutions. Software Specialist Services Contracts for support and maintenance Mission With value-creating software and services we offer customers viable, modern business support. Vitec Software Group AB (publ)
Business Strategy Vertical Market Software Subcontractors Customers Low dependence on Markets with one third party vendors, hundred to several self-development thousand customers. predominate. Not billion markets. Customers option High entry barriers Mission critical Limited and less systems with high cost-effective The competition exchange cost and solutions from long lead times in generalists and Small competitors developing. consultants. with limited resources to grow, sometimes without "professional" management. Vitec Software Group AB (publ)
Growth Strategy 1 - Acquire 1 - Acquire 2 - Refine 2 - Refine Identify and select Identify and select Create operational Create operational vertical market vertical market improvements and improvements and acquisition candidates acquisition candidates establish strategic establish strategic and negotiate and and negotiate and direction. direction. acquire. acquire. Capital Increase Cash Flows. Increase Cash Flows. 3 - Grow 3 - Grow Implement additional Implement additional acquisitions and acquisitions and organic growth. organic growth. Vitec Software Group AB (publ)
A selection of our customers Vitec Software Group AB (publ)
Selection of customers – Property managers Selection of customers – Property managers Vitec Software Group AB (publ)
Business Area Fastighet Business Area Fastighet Rental coupon Tenant pages Apartment rentals Vitec Software Group AB (publ)
Selection of customers - Mäklare Selection of customers - Mäklare Vitec Software Group AB (publ)
Business Area Mäklare Business Area Mäklare Purchase Agreement Data for www.hemnet.se Appl. on the brokers website Vitec Software Group AB (publ)
Selection of customers - Energi Selection of customers - Energi Vitec Software Group AB (publ)
Business Area Energi Business Area Energi Power load forecasts Windpower forecasts Network calculations of electricity load District heat pipe flow Vitec Software Group AB (publ)
Selection of customers – Finans och Försäkring Selection of customers – Finans och Försäkring Vitec Software Group AB (publ)
Business Area Finans och Försäkring Pension Calculations Mortgage calculations Vitec Software Group AB (publ)
Selection of customers - Media Selection of customers - Media Vitec Software Group AB (publ)
Business Area Media Business Area Media SMP – Social Media Platform Vitec Software Group AB (publ)
History of successful growth Milestones 350 1985 Vitec is formed Turnover (million SEK) 1998 Listing on Aktietorget 300 1998 – 2002 Acquisition of companies offering software for real 250 estate management 2002 – Year of IT-crash. Vitec gives 200 dividend for first time (0.25 kr) 2003 – Strategies for growth and 150 acquisitions are formulated Vitec completed 10 company 100 acquisitions and nine acquisitions of product rights or assets. 50 2010 - Turnover is SEK 316 million (Dividends of SEK 1.25) 0 2011 - First acquisition outside of Sweden Vitec Software Group AB (publ)
Strong Earnings Growth Profit before tax (million SEK) 25 20 22,4 %/year 15 10 5 0 2003 2004 2005 2006 2007 2008 2009 2010 Vitec Software Group AB (publ)
Revenue Growth Growth is driven both organically and through acquisition of new business areas 350 Capitex 300 3L System ( million SEK ) Mäklarsystem 250 Media Energi 200 Fastighet 25%/år 150 100 50 0 2003 2004 2005 2006 2007 2008 2009 2010 Vitec Software Group AB (publ)
Growth while maintaining profitability 30% 25% 20% 15% 10% 5% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 Return on capital employed Return on equity Vitec Software Group AB (publ)
Locations and Employees Year Location No. Of employees 1985 Umeå 31 1998 Stockholm 68 2000 Malmö 6 2001 Göteborg 53 2003 Västerås 12 2005 Linköping 45 2009 Dayton Ohio, USA 20 2009 Östersund 7 2010 Kalmar 70 2011 Oslo 14 ~ 320 Vitec Software Group AB (publ)
Interim Report January - September 2011 EARNINGS PER SHARE UP 123 % NET SALES 265,7 Mkr (214,2) OPERATING PROFIT 30,2 Mkr (11,6) OPERATING MARGIN 12 % (6) EARNINGS PER SHARE 5,11 kr (2,29) CASH FLOW 42,7 Mkr (36,1) LISTING ON NASDAQ OMX STOCKHOLM ACQUSITION OF IT MAKERIET A/S IN NORWAY Key events in the third quarter 2011 Vitec subsidiary 3L System AB (publ) signs a contract worth 2.3 million USD • Significant events after the period Vitec call an extraordinary general meeting on 11 November concerning proposals for convertibles to • employees of the Vitec Group. Vitec Software Group AB (publ)
Turnover and repetitive portion per quarter 120,0 120,0 100,0 100,0 Turnover (million SEK) Repetitive portion (%) 80,0 80,0 60,0 60,0 40,0 40,0 20,0 20,0 0,0 0,0 Q3-08 Q3-09 Q3-10 Q3-11 Turnover Repetitive portion Vitec Software Group AB (publ)
Revenue and operating margin by quarter 120 30 100 25 Opetating margin (%) Turnover (million SEK) 80 20 60 15 40 10 20 5 0 0 Q3-08 Q3-09 Q3-10 Q3-11 -20 -5 Turnover (million SEK) Operating margin % Vitec Software Group AB (publ)
Income Statement January – September 2011 Income Statement Jan-Sept Jan-Sept 2011 2010 OPERATING REVENUE License revenues 17 670 15 304 Recurring Recurring revenues 157 120 127 270 Service Service revenues 82 581 63 872 Licence Other income 8 350 7 704 NET TURNOVER 265 720 214 150 Other Other operating income 1 152 2 399 Depreciation -17 001 -12 585 Work performed for own account 9 909 8 166 Other costs -227 570 -199 063 Earnings per share (SEK) OPERATING EXPENSES -234 662 -203 482 4 OPERATING PROFIT 32 210 13 067 3 Financial items -2 030 -1 426 INCOME AFTER FINANCIAL ITEMS 30 180 11 641 2 Tax -6 788 -3 269 1 NET INCOME 23 392 8 372 0 Attributable to the shareholders of Vitec 21 930 8 942 2004 2005 2006 2007 2008 2009 2010 EARNINGS PER SHARE (SEK/share) 5,11 2,29 Vitec Software Group AB (publ)
Balance September 30, 2011 Balance 2011-09-30 2010-09-30 FIXED ASSETS Goodwill 101 411 89 490 Capitalised development expenditure 25 712 20 557 Product rights 71 147 70 042 Equipment and furniture 13 095 7 148 Other non-current receivables 2 105 1 714 CURRENT ASSETS Owners equity per share (SEK) Inventories 68 87 25 Current assets 64 814 72 869 20 Cash 35 288 38 737 15 TOTAL ASSETS 313 640 300 644 EQUITY 112 587 86 287 10 MINORITY INTEREST 21 124 18 710 5 NON-CURRENT LIABILITIES AND PROVISIONS 66 432 81 015 CURRENT LIABILITIES 113 497 114 632 0 2004 2005 2006 2007 2008 2009 2010 TOTAL EQUITY AND LIABILITIES 313 640 300 644 Vitec Software Group AB (publ)
Cash flow January – September 2011 Cash flow Jan-Sep 2011 Jan-Sep 2010 OPENING EQUITY Operating profit 32 210 13 067 Adjustments for items not included in cash flow 17 001 12 585 Interests and taxes -11 938 -11 507 CASH FLOW FROM OPERATING ACTIVITIES BEFORE 37 273 14 145 CHANGE IN WORKING CAPITAL Cash earnings per share (SEK/share) Change in working capital 5 437 21 924 8 CASH FLOW FROM OPERATING ACTIVITIES 42 710 36 069 7 Cash flow from investing activities -25 765 -52 933 6 Cash flow from financing activities -13 777 29 112 5 4 CASHFLOW 11 704 29 349 3 Cash and cash equivalents at beginning of period 32 120 26 551 2 CASH INCLUDING SHORT-TERM INVESTMENTS AT 35 288 38 739 1 END OF PERIOD* 0 • Available cash and cash equivalents at end of period includes SEK 12.6 million in 2004 2005 2006 2007 2008 2009 2010 3L System AB Vitec Software Group AB (publ)
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