EVRY: Stronger EBITA and strengthened EBITA margin in the fourth quarter of 2014

(Oslo, 10 February 2015) EVRY reports EBITA of NOK 268 million for the fourth quarter of 2014 compared to NOK 243 million for the same period last year. EBITA margin increased from 7.0% for the fourth quarter of 2013 to 8.0% for the fourth quarter of 2014. Cash flow from operations reached NOK 706 million in the fourth quarter of 2014, up from NOK 691 million in the fourth quarter of 2013.

"EVRY continues to increase its profitability as a result of improvements in the EVRY Financial Services and EVRY Sweden segments. Also, targeted restructuring and improvement work is ongoing in the EVRY Norway segment, and this should increase the group's long-term profitability in line with the EBITA target we have already announced. We end the fourth quarter with improved cash flow from operations and an increased order backlog", comments Terje Mjøs, CEO of EVRY.

EVRY signed contracts worth NOK 4.1 billion in the fourth quarter. The group's order backlog increased by NOK 700 million during the fourth quarter, and at the end of 2014 totalled NOK 18.0 billion.

Operating revenue for the fourth quarter of 2014 was NOK 3,364 million as compared to NOK 3,473 million in the fourth quarter of 2013. The EVRY Financial Services and EVRY Sweden reporting segments saw positive organic growth of 3% and 1% respectively, while the EVRY Norway segment saw an organic decline of 7% in part due to the loss of a contract as previously announced. Organic revenue declined by 3% for the group as a whole.

Key figures and highlights of the fourth quarter of 2014

• Operating revenue NOK 3,364 million, representing a 3% organic decline in revenue from the fourth quarter of 2013
• Organic growth in the EVRY Financial Services and EVRY Sweden segments
• EBITA before non-recurring items of NOK 268 million (NOK 243 million in the fourth quarter of 2013)
• Pre-tax profit (EBT) of NOK 125 million (pre-tax loss of NOK 404 million in the fourth quarter of 2013)
• Earnings per share before non-recurring items (EPS) of NOK 0.67 (NOK 0.46 for the fourth quarter of 2013)
• Cash flow from operations NOK 706 million (NOK 691 million for the fourth quarter of 2013)
• The group's order backlog totalled NOK 18.0 billion at 31 December 2014

Fourth quarter 2014 figures for EVRY's business areas

The EVRY Financial Services segment reports operating revenue of NOK 988 million for the fourth quarter of 2014 as compared to NOK 959 million for the fourth quarter of 2013, representing organic growth of 3%. EVRY Financial Services produced EBITA of NOK 112 million in the fourth quarter of 2014 as compared to NOK 99 million in the fourth quarter of 2013.

The EVRY Sweden segment reports operating revenue of NOK 939 million for the fourth quarter of 2014 as compared to NOK 936 million for the fourth quarter of 2013, representing organic growth of 1%. The EVRY Sweden segment produced EBITA of NOK 101 million in the fourth quarter of 2014 as compared to NOK 77 million in the fourth quarter of 2013.

The EVRY Norway segment reports operating revenue of NOK 1,561 million in the fourth quarter of 2014 as compared to NOK 1,701 million in the fourth quarter of 2013, representing an organic decline in revenue of 7%. EVRY Norway produced EBITA of NOK 80 million in the fourth quarter of 2014 as compared to NOK 103 million in the fourth quarter of 2013.

Company outlook

EVRY expects to see continued moderate growth in the IT services market in Norway in 2015. It is becoming increasingly recognised that IT is an important source of growth in most business sectors, and is a central means of meeting efficiency challenges in the public sector. In this context, we are seeing trends identified in previous years strengthening. Cloud services are growing at a significantly higher percentage rate than other segments of the market, and EVRY has recognised two underlying situations that are driving this growth. One is that customers looking to invest in new IT equipment are increasingly choosing to purchase services instead. The other is that, when businesses introduce mobile solutions for customers and partners, the flexibility and scalability with which the information and systems involved need to be made available can be provided more cost efficiently if cloud services are used rather than traditional infrastructures.

EVRY is seeing demand trends continue in line with previous quarters in the consulting services market. General expertise is susceptible to pressure on prices, but good hourly charge out rates are being seen for specialist expertise in leading-edge technologies such as mobility and cloud services, and also for industry-specific expertise in particular. These trends are present in Norway and Sweden alike, but regional market-related challenges are having an effect on EVRY's consulting business in these markets. The bank and finance market in Norway and Sweden continues to stand out as a strong market for EVRY, and with a good inflow of new contracts during the last quarter of 2014 the outlook for continued growth in consulting services is good for 2015. The operating services market for medium-sized business in Norway and Sweden is characterised by the trend for purchasing services rather than IT equipment. High demand for and good acceptance of EVRY's product offering adapted for this market segment is producing good growth. The large-customer market is largely defined by global competition, with pressure on prices and a transition from traditional operating services to cloud-based delivery models. This is resulting in steadily falling unit prices that are to a large extent compensated for by volume growth in customers' use of operating services, and this is reflected in flat revenue growth.

The outlook for 2015 is cautiously positive when put in context of the weaker growth that was seen in the fourth quarter, particularly in Norway. The pressure on prices for consulting services and for basic operating services is expected to continue, and there is somewhat greater uncertainty over the demand for consulting services in vulnerable regions, but capacity adjustments have been carried out during the fourth quarter of 2014. EVRY has taken steps over recent years to adapt and specialise its activities for selected industries, and has at the same time strengthened its solutions expertise in the most sought-after areas of technology. Similarly, its local presence in attractive regions is strengthened by its regional teams of experts who are responsible for further developing specific solutions areas and delivery models independently of geographical location. Our expertise and solutions are specialised to address high-demand and high-willingness-to-pay markets in which global suppliers are less active.

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

Contact persons:

Terje Mjøs, CEO EVRY, Tel: +47 06500

Knut E. Røsjorde, CFO EVRY, Tel: +47 95205786

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.