Interim Report January – March 2008 Niklas Flyborg and Erik Forsberg April 24, 2008.

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Presentation transcript:

Interim Report January – March 2008 Niklas Flyborg and Erik Forsberg April 24, 2008

2 Highlights January – March 2008 Positives Solid growth for Plan and Connect excluding the UK Good reception and sales of CisionPoint in the US Growth in international sales – important new client wins CisionPoint in Europe on track for gradual roll-out during 2008 Negatives UK production disruptions implied significant loss of revenue Monitor revenues continue to decline – mainly for print media Nordics restructuring pace too slow Currency development, mainly SEK/USD

3 The Regions North America Organic growth 2% in Q1-08 (0% in Q4-07) CisionPoint well received with new customers in the US Migration of current US customers to CisionPoint to take place during 2008 Positive development in Canada Rest of Europe Organic growth -16% in Q1-08 (-5% in Q4-07) UK production disruption estimated impact of 15 MSEK during Q1-08 Roll-out of CisionPoint during 2008 expected to improve growth and margins going forward Nordic and Baltics Organic growth -1% in Q1-08 (-4% in Q4-07) Strong growth for Plan and Connect, but weak demand for Monitor Restructuring pace slow with lower operating margins than last quarter Restructuring to be completed during 2008 – move towards complete digital service offering International Sales New markets targeted through sales activities in Hong Kong, Holland and Switzerland Continued strong demand and important client wins

4 Cision Group, January –March 2008 Amounts in SEK millionJanuary – March Revenue 443 (488) Organic growth-4 % (3) EBIT31 (41) EBIT excl. restructuring expenses37 (61) Operating margin excl. restructuring expenses8.4% (12.5) - Restructuring expenses of SEK 7 million during the quarter (20)

5 Organic Growth & Operating Margin* (rolling 12 months) * Excluding write-down of goodwill and restructuring expenses

6 Operating Cash Flow and EBIT * (rolling 12 months) * Excluding write-down of goodwill and restructuring costs Amounts in SEK million

7 Regional Operating Performance, January –March 2008 SegmentOperating Profit, MSEK 1 Operating Margin, % 1 North America 44 (46) 23,1 % (22,6) Rest of Europe 2 3 (27)2,7 % (16,8) Nordic and Baltic2 (4)1,2% (3,1) NOTES 1 Excluding restructuring expenses 2 For Q1 2007, operating result includes profit of 7 MSEK from sale of real estate

8 Financial Position Balance Sheet per 31 March 2008 (MSEK) Balance Sheet Key Ratios Cash-Flow (MSEK)

9 Three Key Priorities Going Forward 1. CisionPoint in all markets Continue roll-out in the US to new customers, migrate current client base Roll-out fully integrated version in Europe 2. Leverage competitive advantage for international sales Grow international accounts in the current regions Accelerate the expansion in new markets 3. Reduce cost base per restructuring programs E.g outsourcing, international production centre, new shared software solutions => Secure delivery towards long term financial targets