Unit 4 Agresso Results 2004

1
Unit 4 Agresso Results 2004

• 22 February 2005

2
Statement
This presentation includes forward-looking
statements that reflect our intentions, beliefs
or current expectations and projections about our
future results of operations, financial
conditions, liquidity, performance, prospects,
growth, strategies, opportunities and the
industry in which we operate. Forward-looking
statements include all matters that are not
historical facts. These forward-looking
statements are subject to a number of risks,
uncertainties, assumptions and other factors that
could cause our actual results of operations,
financial condition, liquidity, performance,
prospects or opportunities, as well as those of
the markets we serve or intend to serve, to
differ materially from those expressed in, or
suggested by these forward-looking statements.
Important factors that could cause those
differences include, but are not limited to our
financial position and our ability to implement
our business strategy and plans and objectives of
management for future operations, our ability to
develop, balance and expand our business, our
ability to implement our long-term growth
strategy (including through organic growth and
acquisitions), our ability to make improvements
to our capital structure, industry and market
trends and volumes, including the speed and
strength at which the IT industry and the sectors
in which we operate, rebound from economic
slowdowns and recessions, the effects of
regulation (including employment and tax
regulations), our ability to improve the
efficiency of our operations and to reduce
expenses in our operating companies and their
network of offices, litigation and our ability to
take advantage of new technologies. In light of
these risks, uncertainties, assumptions and other
factors, the forward-looking events described in
this presentation might not occur. Additional
risks that we may deem immaterial or that are not
presently known to us could also cause the
forward-looking events discussed in this press
release not to occur. Except as otherwise
required by applicable law, we undertake no
obligations to update publicly or revise publicly
any forward-looking statements, whether as a
result of new information, future events, changed
circumstances or any other reason after the date
of this presentation.
3
Profit Loss Unit 4 Agresso N.V.
Results including impairment (2.4 M) and
integration / reorganisation costs (2 M)
4
Balance sheet
5
Cash Flow

• Sharp increase cash flow from operations before
  acquisitions
• DSO stabilised on 65 days

6
Development Unit 4 Agresso
7
Business Software division
8
Making the difference

• Nr. 1 European player (nr. 5 world wide) in
  Project Portfolio Management market (Gartner)
• Nr. 1 vendor in Government in Norway, Sweden and
  UK (nr. 7 globally) (Gartner)
• Nr. 1 vendor in Higher Education in Norway,
  Sweden and UK (Gartner)
• In top 8 European Financials players (nr. 11
  globally) (Gartner)

9
Business Software

• Maintenance including ASP clients
• Organic growth 7

10
Business Software
Significant margin improvement by leverage RD
11
Investment in RD
12
Agresso Business World 5.5Platform release
June 2005
Future proofing lowered TCOArchitecture,
workflow modeller, data model, portal
independency, interoperability, Unicode,
avoidance of customisation, look feel
Embracing change Modelling your organisation
Business model reporting model process model
Empowerment of peopleRole orientation, adaptable
workflow, simpler control, Easy of use (Smart
Thin clients), pro-active delivery of
information, high degree of personalisation
Broadened participation Encourage involvement
external audience (Citizens, students,..),
Distributed accountability, Corporate governance
13
Revenues by country
2004
2003
14
Segmentation
Client base
Verticals
WD
New
21
26
Professional
services
48
Public sector
Existing
74
31
15
Developments per country
Americas Direct sales within Sabre ASP model
successfully introduced Successful local
government sales Germany Tendency is healthy
(61) Pipeline significantly improved 2005
positive contribution UK Remains
strong Profitability improved Q1 is expected to
be excellent Spain Integration SPAI and Escador
in 2005 Public sector entrance Rapidly expanding
customer base
Benelux Local government entrance
(Decade) Profitability doubled WD is improving
significantlyNorway RD on track Profitability
remains 20 new local government
clients Sweden Further penetration in Public
Sector Important orders (Bravida and
EEPC) Profitability improved France Still
difficult market Converting clients from
Fininfor More focus core markets
16
Business Software sector focus

17
New Clients (Selection most important wins gt500K)
18
Other success in Business Software

• gt 300 Auditing firms on Account Analyser in the
  1st year (2 of big four)
• Internationalisation of Omnivers 8 - Integrated
  with AGRESSO Business World
• Spectacular growth nr. of SMB clients thanks to
  Starters campaign in coop with Chamber of
  Commerce
• Unit 4 Agresso Payroll introduction to hospitals,
  large auditing firms and large organisations like
  Grolsch and InterPay

19
Some of our key customers?
Commercial Services
Professional services
Government
Other Public Sector
House of commons
Red Cross
Oslo Kommune
Save the children
20
Internet Security division
21
Internet Security

• Gross margin improving despite more distribution
• EBITDA decreased due to integration and
  reorganisation costs (2M)
• Organic growth 3

22
Revenues by country
2003
2004
23
Product revenues split by product line
2003
2004
24
Strategy successfully executed in 2004

• Expanded market position
• Total revenue growth of 45
• Organic revenue growth of 3
• Dollar impact on revenues was -7
• Focus on added value
• More services total growth 50 (org. 8)
• Stabilizing GM on 25.3
• Evolving from security to continuity
  andavailability
• Building stronger organization
• Doubling business, countries, people
• Integration back-offices RISC
• Building new Central warehouse
• Restructuring German operations in line with
  market conditions

25
Ready for further growth

• Implement more services in old RISC
  organization
• Ideal candidate for major new vendor contracts
• Synergy on costs
• Investments in growth of footprints in IT, UK,
  IRL and AUS
• More efficient logistic services

26
Group outlook
Organic revenue growth 7-10
EBITDA growth gt 15
BS EBITDA Margin gt 20 IS EBITDA Margin gt 5
27
Questions?