BTS Group's Annual Report 2020 Now Available Online
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[EXTERNAL EMAIL] Published: 2021-04-28 11:30:00 CEST BTS Group AB Annual Financial Report BTS Group’s Annual Report 2020 now available online P R E S S R E L E A S E Stockholm, April 28th, 2021 STOCKHOLM, SWEDEN - BTS GROUP AB (publ), a world leading global strategy implementation firm, has made its Annual Report 2020 available online at http://ir.bts.com/annuals-proxies.cfm For more information, please contact: Michael Wallin Head of investor relations BTS Group AB [email protected] +46-8-587 070 02 +46-708-78 80 19 This information is information that BTS Group AB is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 11:30 on April 28, 2021. About BTS Group AB BTS is a global professional services firm headquartered in Stockholm, Sweden, with about 820 professionals at 35 offices located on six continents. We focus on the people side of strategy, working with leaders at all levels to help them make better decisions, convert those decisions to actions and deliver results. At our core, we believe people learn best by doing. For 35 years, we’ve been designing fun, powerful experiences™ that have a profound and lasting impact on people and their careers. We inspire new ways of thinking, build critical capabilities and unleash business success. It’s strategy made personal. We serve a wide range of client needs, including: Assessment centers for talent selection and development, Strategy alignment and execution, Business acumen, Leadership and sales training programs, and On-the-job business simulations and application tools. We partner with nearly 450 organizations, including over 30 of the world’s 100 largest global corporations. Our major clients include, for example, ABB, Chevron, Coca-Cola, Ericsson, EY, HP, Mercado Libre, Salesforce.com, SAP, and Tencent. BTS is a public company listed on the Nasdaq Stockholm exchange and trades under the symbol BTS B. For more information, please visit www.bts.com. Attachments: BTS_Annual_Report_2020.pdf Cancel this subscription This news release was distributed by Company News System, www.nasdaqomxnordic.com/news Annual Report 2020 Areas we play Strategy Alignment and Business Acumen Assessments Today’s rapidly changing business climate Faced with limited talent pools and a highly pressures your leaders to better understand competitive market, hiring and promoting your company’s business model, faster. BTS the right people can be extremely difficult. works with people at all levels, developing the strong BTS Assessment helps your company gain an business acumen necessary for successful strategy accurate understanding of your employees’ capabilities, execution. BTS’s programs use highly experiential and designs talent selection and development initiatives customized simulations to allow your people to run that align with the strategic needs of your business. the business and practice executing the strategy Working with leaders at all levels, our solutions make as if it were their own. identifying, selecting, and developing the right talent more accurate and efficient. Leadership Development We know that leadership is relentlessly Coaching contextual and immensely personal. As such, For too long, coaching has been seen as a leadership development should be customized ‘black box’ focused more on individual needs to your strategy, culture, and business environment. Our than strategic business goals, and something simulation-based learning programs allow your people affordable for only senior leaders. Over a decade ago, to experience leading as if in real life, developing the BTS Coach eliminated all of these constraints by turning skills and confidence necessary to drive strategy coaching on its head. We partner with you to create execution. bespoke one-to-one coaching journeys that support your initiatives, and also offer a portfolio of just in-time Sales and Marketing solutions allowing you to access high quality, globally Building mastery of business acumen and available, scalable executive or team coaching solutions people dynamics, we equip your salespeople on demand. to more effectively engage buyers and prioritize sales activity, inspiring better Change and Transformation customer decisions and driving exceptional results. We Change has changed. At BTS, we help you turn enable sales managers to optimize sales management, plans to actions because we know that change with the skills to lead people, develop people, and execute and transformation can’t be planned perfectly. their plan, leveraging both business acumen and people Partnering with your company, we link transformation dynamics. Not only do we focus on the salesperson and to your strategy by defining the outcomes and sales manager, but also on developing sales and structures necessary for working in new ways. Through marketing approaches for sales leaders, marketing, transformational experiences, your leaders shift their specialized sales sources, and channel partners. mindsets, enabling them to embrace and lead change. They execute your new strategy with new actions and Innovation and Digital Transformation behaviors in an environment where change is expected Success in today’s world requires constant innovation and leveraged as an opportunity. and an astute use of digital technology. We help leaders at all levels learn how to manage through digital disruption and cultivate the culture and environment necessary for innovation. Through our customized business simulations, your people will bridge the gap from your company’s current state to your desired future state, capturing the benefits of technology, speed, innovation, and smart risk-taking. Helping the world’s leading companies turn strategy into results BTS is a global professional services firm headquartered in Stockholm, Sweden, with approximately 820 professionals in 33 offices located on six continents. BTS’S OFFICES AROUND THE WORLD Stockholm Cologne Amsterdam Seoul London Paris Toronto Tokyo San Francisco (2) Boston Bilbao Shanghai New York Madrid Phoenix Philadelphia Zurich Taipei Chicago Milan (2) Dubai Bangkok Mexico City Mumbai (2) Singapore Sao Paulo Johannesburg Sydney Buenos Aires Melbourne Net sales per operating unit Operating profit (EBITA) per operating unit MSEK 2019 2020 MSEK 2019 2020 1,000 120 100 800 80 600 60 40 400 20 200 0 0 –20 APG APG BTS Europe BTS BTS Europe BTS BTS North America NorthBTS BTS Other markets Other BTS BTS Other markets Other BTS BTS North America NorthBTS Helping the world’s leading companies turn strategy into results We work with our clients to build commitment and capability to accelerate strategy execution and improve business results. Our vision is to be the global leader in turning strategy into action. Seoul Tokyo Some of our clients Shanghai Taipei ABB Chevron Mondelez Tencent Bangkok Atlas Copco Coca-Cola Nike TMobile Singapore Bancomer EY Petronas Vale Bayer Ericsson Salesforce.com Verizon BHP Mercado Libre SAP Wärtsilä Cepsa Microsoft ServiceNow Sydney Net sales Profit after tax MSEK MSEK 2,000 200 1,500 150 1,000 100 500 50 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 in brief • Net turnover amounted to SEK 1,464 millions (1,865). • Sales decreased by 19 percent, adjusted for changes in foreign exchange rates. • EBITA decreased by 63 percent to SEK 90 millions (245) • Profit before tax decreased by 76 percent to SEK 51 millions (216). • Profit after tax decreased by 77 percent to SEK 35 millions (151). • Earnings per share decreased by 77 percent to SEK 1.82 (7.84). Key ratios 2020 2019 Key ratios 2020 2019 Net sales, SEK millions 1,464 1,865 Return on equity, % 5 20 Operating profit (EBITA), SEK millions 90 245 Equity ratio at the end of the year, % 36 45 Cash flow from operating activities, Operating margin (EBITA margin), % 6 13 242 218 SEK millions Operating profit (EBIT), SEK millions 65 226 Cash flow, SEK millions 307 48 Operating margin (EBIT margin), % 4 12 Cash and cash equivalents at the end 591 316 Profit before tax, SEK millions 51 216 of the year, SEK millions Profit after tax, SEK millions 35 151 Average number of employees 843 779 Profit margin, % 2 8 Number of employees at the end of the year 821 832 Operating capital, SEK millions 523 600 Net turnover per employee, SEK millions 1.7 2.4 Return on operating capital, % 12 39 Net sales by source of revenue Earnings and dividends per share 2020 (2019) SEK 8 Other revenues 2% (5%) Licenses 13% (9%) Programs 53% (61%) 7 6 5 4 3 Development 32% (25%) 2 1 0 2011 2012 2013 2014 2015 2016 2017 2018 20192020* Earnings per share Dividend per share *Proposed dividend BTS ANNUAL REPORT 2020 1 2 BTS ANNUAL REPORT 2020 Contents Words from the CEO 4–5 Financial information Vision, purpose, value proposition and goals 6–7 BTS share information 44–45 Strategic principles 8 Five-year summary 46–48 Management report 49–52 Practices Consolidated income statement 53 Strategic Alignment and Business Acumen 10–11 Consolidated statement of Leadership Development 12–13 comprehensive income 53 Sales and Marketing 14–15 Consolidated balance sheet 54–55 Innovation and Digital Transformation 16–17 Changes in consolidated equity 56 Assessment 18–19 Consolidated cash flow statement 57 Leadership Coaching 20–21 Parent Company’s income statement 58 Change and Transformation 22–23 Parent Company’s statement of comprehensive income 58 Business model and clients Parent Company’s balance sheet 59 Business model 26–27 Parent Company’s cash flow statement 60 Digital services 28–29 Changes in Parent Company’s equity 61 Our clients and industries 30–31 Notes to the annual report 62–79 Growth, profitability and acquisitions 32–33 Audit report 80–83 Organization, culture and APG Governance and management Organization 36 Sustainability report 84–94 Core values 37 Corporate governance report 95–99 Our people and culture 38–39 The Board of Directors and auditor 100–101 Advantage Performance Group 40–41 Senior executives and global partners 102–103 Shareholder information 104 BTS ANNUAL REPORT 2020 3 WORDS FROM THE CEO Culture eats strategy for breakfast ”I don’t enjoy my work, nor the company, not at all.