Page 54 - EVRY Annual Report 2012

From the Boardroom 54
Report from the
Board of Directors 2012
All EVRY’s employees have been involved in the changes
and work on corporate culture that have taken place over
the period since the merger in 2010. The objective is to build
a professional, market-oriented and customer-centric or-
ganisation. An important milestone in this process was the
launch of EVRY as the new brand identity for the company on
19 March 2012. Surveys carried out in autumn 2012 identified
an improvement in employee satisfaction to a satisfactory
level, demonstrating that the work on corporate culture and
improvement measures is producing results.
The new brand identity has been well received by the market,
with improving awareness of EVRY, and results from custom-
er satisfaction surveys show a further year of improvement.
Work on building the new company continue with undi-
minished focus. This means that work is continuing on the
quality improvement and development programs that were
initiated in 2011 and 2012 in order to ensure that the targeted
results are achieved in relation to deliveries to customers and
the company’s profitability. In view of this, the Board con-
tinues to take a close interest in the improvement programs
and other measures that the company is implementing.
EVRY’s consolidated operating revenue for 2012 was NOK
12,731 million, which was in line with 2011. The group’s
activities in Sweden reported organic growth of 5% for 2012,
while the Norwegian activities reported negative organic
growth of 2% for the year.
The group reported operating profit before amortisation and
write-down of intangible assets (EBITA) for 2012 of NOK 534
million as compared to NOK 724 million in 2011. The group
reported net non-recurring items in 2012 of NOK 173 million,
and after adjusting for this the group’s EBITA in 2012 was
NOK 708 million compared to NOK 671 million in 2011 (after
adjusting for non-recurring items of NOK 59 million and a
positive pension effect of NOK 112 million). The EBITA margin
before non-recurring items was 5.6% in 2012 as compared to
6.1% in 2011. After adjusting for the pension effect, the EBITA
margin for 2011 was 5.2%.
The operating result (EBIT) for 2012 was a profit of NOK 485
million as compared to profit of NOK 626 million for 2011.
After adjusting for non-recurring items, EBIT for 2012 was
NOK 658 million. EBIT for 2011 was NOK 602 million after
adjusting for non-recurring items and the pension effect of
NOK 112 million. Net financial expense for 2012 totalled NOK
185 million, as compared to NOK 272 million in 2011.
Reported earnings per share for 2012 was NOK 0.74 as com-
pared to NOK 0.86 for 2011. After adjusting for non-recurring
items, earnings per share for 2012 was NOK 1.21.
In accordance with the company’s dividend policy, the Board
has resolved to recommend that the Annual General Meeting
should approve a dividend for the 2012 financial year of NOK
0.35 per share, equivalent to NOK 93 million.
At the time of the merger in 2010, EVRY launched a three-
step strategy towards Nordic leadership. The company has
now completed the first step in accordance with the objec-
tives it announced, namely to realise synergy benefits of
NOK 325 million while at the same time maintaining close
operational focus on customers and employees.
EVRY is now on the second step of the strategic plan, where
the focus is on profitable growth. As part of this, EVRY
introduced a new organisational structure on 1 January 2013
to support the company’s strategy for Nordic leadership. The
main features of the new structure are a strengthened go-to-
market model in Norway and Sweden, a clearer focus on in-
dustry verticals with growth potential, and the development
of a new, industrialised operating services organisation. In
late 2012 and early 2013, EVRY signed strategic contracts with
2012 was a year in which EVRY successfully launched its new brand and completed
a major synergy and integration program,while at the same time the company’s EBITA
and cash flow continued to improve.EVRY intends to continue to improve its profitability
by maintaining a strong focus on enhanced professionalism and quality improvement
at every level. In addition, the company sees further potential for improving profitability
through measures to industrialise its operating services activity and through greater
focus on industry verticals with growth potential.