Interim Report for Q1 2019 Content

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Interim Report for Q1 2019 Content Q1 OSLO BØRS TICKER: EVRY Interim report for Q1 2019 Content Financial highlights.………………………………………………………………………………………………5 Business update………………………………………………………………………………………………….6 Group performance……………………………………………………………………………………………....9 Business area performance……………………………………………………………………………………12 Key figures and financial ratios………………………………………………………………………………..15 Condensed consolidated interim financial statements……………………………………………………...16 Alternative performance measures (APMs)………………………………………………………………….30 EVRY ASA Q1 2019 REPORT | 3 About EVRY EVRY is a leading Nordic tech and consulting company. Together with our customers and an ecosystem of the best global digital experts, we shape the future today by applying new technologies to improve end user experiences, and the performance of people, processes and systems. We are close to our customers and represent a Nordic mindset on responsibility, quality and security. We leverage our Nordicness to do business in more than 18 countries. EVRY is listed on Oslo Stock Exchange under the ticket code EVRY. Our 8 800 employees are passionate about creating digital advantage and shaping the future – today. EVRY reported turnover of NOK 12.9 billion in 2018 and the company's headquarters are located at Fornebu just outside Oslo. www.evry.com FORWARD-LOOKING STATEMENTS This report contains forward-looking statements. Statements herein, other than statements of historical fact, regarding future events or prospects, are forward-looking statements. EVRY has based these forward-looking statements on its current views with respect to future events and financial performance. These views involve a number of risks and uncertainties, which could cause actual results to differ materially from those predicted in the forward-looking statements and from the past performance of EVRY. Although EVRY believes that the estimates and projections reflected in the forward-looking statements are reasonable, they may prove materially incorrect, and actual results may materially differ, e.g. as the result of risks related to the IT services and software markets in general or EVRY including those described in the Prospectus provided in connection with the IPO and other information made available by EVRY. As a result, you should not rely on these forward-looking statements. EVRY undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. EVRY ASA Q1 2019 REPORT | 4 Financial highlights Continuing organic growth, stable margins and strong improvement in cash performance . Total revenue of NOK 3 330 million . EBITA1 in Q1 2019 of NOK 332 . Backlog of NOK 18.6 billion as of in Q1 2019 (NOK 3 208 million in million (NOK 320 million in Q1 31 March 2019 compared to Q1 2018) 2018), representing an EBITA1 NOK 17.8 billion in Q1 2018 margin of 10.0% in Q1 2019, in line . Organic growth2 of 3.6% in Q1 with Q1 2018 . EPS1 in Q1 2019 of NOK 0.50 2019 (0.5% in Q1 2018) compared to NOK 0.53 in Q1 . Increased cash conversion in Q1 2018 2019 of 97.0%, up from 70.3% in Q1 2018 (NOK million) Q1 2019 Q1 2018 2018 Operating revenue 3 330 3 208 12 912 Organic growth 3.6 % 0.5 % 3.0 % EBITDA1 450 374 1 812 EBITDA margin (%)1 13.5 % 11.7 % 14.0 % EBITA1 332 320 1 582 EBITA margin (%)1 10.0 % 10.0 % 12.3 % Other income and expenses 88 125 560 Profit/-loss for the period 118 100 640 Free cash flow -62 -320 997 Cash conversion (LTM) 97.0 % 70.3 % 86.2 % Backlog (NOK billion) 18.6 17.8 19.4 Earnings per share1 0.50 0.53 2.89 1) Before other income and expenses 2) Organic growth is defined as revenue adjusted for impacts from acquisitions, divestments and foreign currency effects Per Hove, CEO at EVRY, comments: For investor and analyst enquiries - I am pleased to announce that we are delivering a quarter that is Helle Wiggen, Investor Relations Manager in line with our internal objectives and trading according to our full +47 93823402 year plan. For media enquiries Unni Strømstad, EVP Communications I am particular pleased with the increased organic growth in the and Marketing, first quarter combined with stable margins and a significant + 47 97753453 improved cash conversion. EVRY ASA Q1 2019 REPORT | 5 across the seven practices. This mean a shift towards working in teams to solve customer challenges and a more structured Business update way of developing competence for consultants across the Nordics. THE LEADING ROBOTICS PROCESS AUTOMATION A FUTURE FULL OF OPPORTUNITIES FOR NORDIC (RPA), ARTIFICIAL INTELLIGENCE (AI), ANALYTICS AND CONSULTING MACHINE LEARNING SERVICE PROVIDER IN THE NORDICS EVRY has the ambition to orchestrate digital transformation in the intersection of human understanding, business sense and Multiple exciting projects have taken place in the first quarter digital technology in order to unleash the digital potentials at of 2019. An example is EVRY’s long going relationship with customers to the benefit for society. A Nordic consulting Systembolaget that was communicated in the fourth quarter organisation enabling EVRY to work across seven practices of 2018. EVRY is Systembolaget’s digital partner to build their has been announced and established for external positioning "future store". Together the companies are developing and internal competence development in the first quarter of innovative solutions to cope with the shifting customer 2019. The next step is to fully operationalise this organisation behaviour from the increase of digital commerce. For in the second quarter of 2019. Systembolaget, EVRY explores how the future store can be built and how digital solutions can be implemented in these. EVRY’s seven practices In order to meet such requirements, EVRY must put together 1. Digital Experience whole teams of competencies. Collaboration is important and 2. Business Consulting Findwise, EVRY’s wholly owned subsidiary, has in the first 3. Application Innovation quarter of 2019 started to create a self-learning data model 4. Business Applications using taste descriptions for wine. Using emerging 5. AI, Analytics & Insight technologies like machine learning, knowledge graphs and 6. Cloud & Infrastructure other AI techniques this might in the future be used as a 7. Security & Risk “digital wine expert”. Overall, to contribute with industry solutions that favours retailers and create efficient logistic integration, is an area of strategic value for EVRY. EVRY’s customers are changing and carry out more complex projects, and these projects require varied combinations of Another example of a winner in the competitive retail- different competencies. The customers see that collaborating landscape is Rusta. Rusta is growing at healthy margins, is the key to innovation and flexibility. Consequently, EVRY opening new stores and expanding their Nordic presence. must mirror its customers in diversified teams and increase EVRY, as a historically trusted operations’ supplier, is now focus on selling multi-disciplined teams who are trained to engaged in dialogues on how to further develop decision- deliver specific business outcomes to capture this demand. making and planning through BI-support, how to onboard new acquisitions in the central application, IFS Applications, and “Creating digital advantage for tomorrow’s leaders” is a to prolong the partnership in order to further support an on- reminder that technology is essential in the world of business going growth for Rusta. today. The opportunity space is large and dynamic. To deliver on this, EVRY needs to become an even more dynamic Other exciting projects within EVRY’s Retail and Logistics’ organization itself. The reality is that all companies constantly segment is its prolonged partnership with PostNord with need to change. A vital means to achieve this is to mature the regards to transport planning, and the development of the company’s own digital workplace philosophy, which the Transport Management platform Alystra. EVRY is now looking company also advice its customers to do. By focusing on into how to further enhance the functionality to ensure a digitizing EVRY’s own business processes where it makes relevant customer experience for the end consumer where sense, the company simultaneously build relevant PostNord’s business is booming in the trails of the on-going competence in its own consultants. Subsequently EVRY’s retail transformation and strong growth of e-commerce. consultants will add value to its customers also based on recent experience from the company’s own organization. Moreover, EVRY entered into a partnership with “AI EVRY believes that by being at the forefront of adopting new Innovation of Sweden” as one of the founding partners in the digital advances will make the company better advisors to its first quarter of 2019. The partnership gives EVRY exclusive customers who are seeking to adapt to the future. An indirect benefits for both its employees and customers. This benefit EVRY gets from having this focus, is that it continues partnership will benefit EVRY’s customers, through EVRY, to to strengthen a change capable culture. have access to the best AI competence, researchers and unique datasets. In addition, as one of the founders EVRY will Looking ahead, EVRY will actively work to inform and advice be able to influence what projects the center will be running, its existing customers on what they can expect of value from and how they will be implemented along with shaping the lab EVRY’s seven practices. EVRY believe its customers will and sandbox environments. All work done in the center is value seeing pre-packaged offerings to a greater extent, and based on collaboration on sharing ideas, knowledge, and to learn the true range and depth EVRY can provide of data. This is an exclusive position in terms of EVRY becoming expertise. As such, the company believes it will see its the leading AI, Analytics and machine learning service customers expanding the scope of services sourced from provider in Sweden.
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