Ingen bildrubrik

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Observer AB
January March 2006 Niklas Flyborg May 2006
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Highlights

• Positive market development and improved
  underlying results
• Measures to strengthen operations in Nordics and
  UK
• Expected savings of app SEK 130 million
  restructuring costs of SEK 120 million
• Write-down of goodwill in UK, Ireland, Norway and
  the Baltics
• Strong development in important markets like US
  and Germany

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January March 2006
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Market

• Generally good market conditions
• Rising demand for value-added analyzed
  information
• Opportunity to gradually increase fixed revenue

• North America
• Healthy demand for integrated services
• Strong market for broadcast monitoring

• Nordics
• Continuing weak demand for non-digital monitoring
  services
• Positive development in the large client segment

• Rest of Europe
• Positive development in Germany and Portugal
• Weak development in Monitoring in UK and Ireland

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The Regions
Organic Growth
Operating Margin (excl. write-down, goodwill)
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Changes and developments

• Nordic
• Functional organization
• Digitalization of the monitoring process
• Reduced number of production sites
• Co-ordination with group HQ

• UK Ireland
• Implement changes in business model
• Establish new sales process
• Further development of the digital production
  process
• Organizational and management changes
• Restructuring Ireland

• Savings costs
• Estimated savings of SEK 130 million
• Restructuring costs of SEK 120 million

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Organic Growth Operating Margin
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Regions Q1 2006
Organic growth and EBIT margin by region (excl.
write-down, goodwill)
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Operating cash flow / EBIT/EBITA
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Goodwill Q1 2006
223
Write-down (M SEK) UK 405 Ireland 41 Norway 23 Bal
tics 0.1 Total 469
1101
751
287
SEK 2363 million
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A changing market

• Growing international sales
• Growing demand for Evaluate services
• Increasing share of revenue from portals and
  software
• Outsourcing and off-shoring
• Copy right agreements
• Partnerships, joint ventures, acquisitions

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Focus 2006

• Observer Nordic UK
• Integration, knowledge sharing and best practice
• International offering

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