Niklas Flyborg, Gunilla Rudebjer
April 26, 2007
January - March 2007
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Highlights January - March 2007
All regions report growth
Strong growth in integrated services and evaluation services
Growth in international client segment
Restructurings proceed according to plan
Number of employees reduced by 95 during the quarter.
Stabilization and enhanced services in the UK
Enhanced evaluation services and increasingly digital solutions improved sales in the Nordic & Baltic region.
Continued positive development in the US, Germany and Portugal
New company name and brand launched
CisionPoint increasingly common offering
Sales offices established in Amsterdam and Hong Kong
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Cision new common corporate name and brand
The Annual General Meeting 2007 resolved to change the company’s name to Cision.
The Group gets a common name and uniform profile across all markets
CisionPoint increasingly common offering in all markets
A common name that applies to every part of the Group allows Cision to
Better leverage its international presence
Be an obvious partner to large and international clients.
Increase efficiency
Move towards services that contain analyzed information
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Market
Generally good market conditions, but tough competition in all service areas
Growing importance of reputation and brands drive demand
Rising demand for integrated services with value-added analyzed information
Growing demand within international client segment
New market roles as content becomes increasingly accessible
Publishers seek new revenue streams as print media declines in relative importance
Opportunities in mediating information
Consolidation will continue and increase, mainly driven by technological shift (digitalization), internationalization of industry and lack of critical mass amongst regional competitors.
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January – March 2007
Amounts in SEK million January – March
Revenue 488 (493)
Organic growth 3 % (3)
EBIT 41 (-404)
EBIT excl. write-down goodwill and restructuring expenses 61 (65)
Operating margin excl. write-down goodwill and restructuring expenses 12.5 % (13.2)
Operating cash flow 90 (34)
• Restructuring expenses of SEK 20 (-) million
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Organic Growth & Operating Margin* (rolling 12 months)
-2%
0%
2%
4%
6%
8%
2004
Q3
2004
Q4
2005
Q1
2005
Q2
2005
Q3
2005
Q4
2006
Q1
2006
Q2
2006
Q3
2006
Q4
2007
Q1
Gro
wth
5%
7%
9%
11%
13%
15%
Mar
gin
Organic growth Operating margin
* Excluding write-down goodwill and restructuring expenses
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Operating Cash Flow and EBIT * (rolling 12 months)
0
50
100
150
200
250
300
2004 Q
3
2004 Q
4
2005 Q
1
2005 Q
2
2005 Q
3
2005 Q
4
2006 Q
1
2006 Q
2
2006 Q
3
2006 Q
4
2007 Q
1
OC
F
0
50
100
150
200
250
300
EB
IT
Operating Cash Flow * EBIT *
* Excluding write down of goodwill and restructuring costs
Amounts in SEK million
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Balance Sheet March 31, 2007
Working capital: -85 Equity / Assets ratio: 45 % Debt / Equity ratio: 57 % Net debt: 735
Financial liabilities 924
Operating liabilities 477
Equity 1 289
Financial Assets, 189
Current receivables, 392
Other fixed assets, 258
Goodwill 1 959
Amounts in SEK million
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The Regions
North AmericaSolid earnings
Organic growth amounted to 2 % (5 % excluding nonrecurring earnings in 2006)
Healthy demand for integrated services
Rest of EuropeImproved earnings
Organic growth amounted to 2 %
Positive development in Germany and Portugal
Stabilization and enhanced service offering in UK
Nordic & BalticImproved earnings
Organic growth amounted to 3 %
Digitalization increases client value in Cision’s software solution, CisionPoint
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Restructuring
Restructuring expenses amounted to SEK 20 million
Effects by the end of the year
Irish operations closed in January.
Costs reserved in 2006
The action programs are expected to lead to yearly savings of SEK 200 million with a full effect by 2009. Restructuring expenses are expected to total SEK 170 million. The impact on earnings based on the 2006 expense level and exchange rates is estimated as follows:
Estimates of aggregate effects are preliminary and could be affected by outside circumstances, which
could result in eventual changes in the time schedule.
Mkr 2006 2007 2008 2009
Savings impact 10 75 165 200
Restructuring expenses 57 63 50 –
Net savings -47 12 115 200
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Cision today
Strengths
Global market leader with a common brand
Unparalleled offering – breadth and depth
Large client base
Prime position in North America – the leading media market in the world
Strong cash flow
Opportunities
Strong growth in international client segment
Strong position within our client segment
Effects from initiated cost reduction program
Increased synergies within and between regions
Expansions to new markets
Cision is well positioned to capitalize on a growing market.
