EVRY intensifies its focus on organic growth

(Oslo, 11 June 2014) EVRY is today holding a capital markets day at which the company will present a strategy for faster organic growth together with a program to improve profitability. EVRY's objective is significant improvement in the group's EBITA margin from a baseline of 5.9% in 2013 to 8.0% in 2016. The company will continue to aim to pay an annual dividend equivalent to 20-50% of normalised post-tax profit.

"Technology plays an ever more important role in economic growth. In addition, surveys show that the ability of companies to make use of new technology is crucial for improving their competitiveness. EVRY's new growth initiative is designed to support customers' needs for rapid time-to-market by providing new and innovative solutions. Growth is a key driver for EVRY's program to strengthen its profitability", comments Terje Mjøs, CEO of EVRY.  

Focus on growth intensified

EVRY anticipates that the overall market for IT services in Norway and Sweden will grow at an annual rate of between 2% and 4% over the period to 2016. Growth is being driven by next-generation IT solutions for which mobility and cloud-based delivery play a central role. EVRY combines technology with its in-depth understanding of specific industries and their business to ensure that customers can make use of new technology in a way that delivers relevance and significant benefits. EVRY is also well positioned to support its customers with streamlining and standardising their existing infrastructure in order to release resources that can be allocated to new development.

EVRY has reported positive organic growth for all its segments over recent quarters. The group is now intensifying its focus on organic growth. EVRY's objective is to grow at a faster rate than the market in the areas where the company has a strong position:  

Financial Services: Solutions for core banking and payment services as well as the card services areaRegional activities: Increased cross selling and new, standardised concepts for the SME marketSelected industries: Intensified focus on industry-specific solutions for selected industry verticals, of which the healthcare and oil & gas sectors are examples.Managed services: Take a leading position as a provider of new and innovative services for mobility and through the group's new operating services concept known as Future Proof.

Program for improved profitability

In addition to its strategy for faster growth, EVRY will present a comprehensive program to improve profitability. The main features of this program are:

Improved operational efficiency (PACE): This is a comprehensive program designed to coordinate activities across the group, supervise the implementation of necessary changes and ensure that cost savings are realised.EVRY has reported good results from its Lean program since 2010, both in terms of improved quality and cumulative cost savings over this period of NOK 400 million. Work on the Lean program in Norway will continue, and Lean will be extended to include the group's Swedish activities. Annual cost savings are expected to be in the order of NOK 50 -100 million.Improved project expertise together with the use of shared methodology and portfolio management will contribute to reducing project costs, greater efficiency and improved risk management.   

Guiding

EVRY has reported an improvement in cash flow from operations of more than NOK 800 million since Q2 2011, due in part to steps taken to reduce working capital. Working capital is expected to reduce further to achieve the stated objective of 4.0% of revenue. In addition, EBITA margin is expected to improve sharply over the period to 2016, increasing from a baseline of 5.9% in 2013 to 8.0% in 2016. This improvement is expected to generate significant positive cash flow. The company will continue to aim to pay an annual dividend equivalent to 20-50% of normalised post-tax profit. The company also targets an equity ratio of 40% and a gearing ratio < 2.6 in 2016.

EVRY's margin corridors for its reporting segments are unchanged:

EVRY Financial Services 9% - 12%EVRY Sweden 8% - 10%EVRY Norway 7% - 9%

Further information

EVRY is holding a Capital Markets Day today. The presentation material is provided as an appendix to this announcement, and is also available on the company's website at www.evry.com.

The presentations can also be viewed as a webcast. For further information and the agenda for the day, please see the company's investor relations pages. 

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Contact persons:

Terje Mjøs, CEO EVRY, Tel: +47 06500

Morten Frogner, Acting CFO EVRY, Tel: +47 95724959

Geir Remman, VP Corporate Communications, EVRY, Tel: + 47 970 55 017

About EVRY

EVRY is one of the leading IT companies in the Nordic countries, with a strong local and regional presence in 50 Nordic towns and cities. Through its knowledge, solutions and technology, EVRY contributes to the development of the information society of the future, and so creates value for the benefit of its customers and for society as a whole. EVRY combines in-depth industry knowledge and technological expertise with a local delivery model and international strength.

EVRY has some 10,000 employees, and the company is committed to demonstrating that Nordic customers are best served by a supplier that understands Nordic business from the inside. EVRY reports annual turnover approaching NOK 13 billion. The company is listed on the Oslo Stock Exchange and operates from headquarters at Fornebu in Bærum, with major activities in both the Norwegian and Swedish markets. 

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

EVRY Capital Markets Day 2014


This announcement is distributed by Nasdaq OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: EVRY via Globenewswire
HUG#1792047