Page 8 - EVRY Annual Report 2012

Overview 8
EVRY continued to improve both EBITA and cash flow in 2012, and the Board has
recommended a dividend of NOK 0.35 per share. Our ambition is to achieve a
significant improvement in profitability.We are therefore continuing with the process
of developing and professionalising EVRY. In line with EVRY’s strategy for Nordic
leadership, we implemented important measures at the start of 2013 that will
strengthen the company.
EVRY has a three-step strategy for Nordic leadership. Over
the two years that have passed since the merger, the company
has prioritised the successful implementation of the merger
in the best interests of our customers and employees, as well
as realising synergies.
In 2012, we completed the synergy program in line with the
target announced at the time of the merger for annual cost
savings of NOK 330 million. Consolidated EBITA before non-
recurring items increased by 6% in 2012 to NOK 708 million
after adjusting for the extraordinary EBITA effect related to
pensions in 2011 (NOK 112 million). Similarly, cash flow from
operations before restructuring costs improved by 15% to
NOK 778 million. Over the period since the merger in 2010,
EBITA has improved by 28% and cash flow from operations
before restructuring costs has improved by 38%.
EVRY is now at the start of the second step of the strategic
plan, where the focus is on profitable growth and progress-
ing the quality improvement measures already in operation.
This involves a more intense go-to-market strategy in
Norway, a more pronounced focus on industry verticals that
offer the potential for growth, and simplifying the operating
services organisation in the IT Operations segment. As part
of this, we introduced a new and more streamlined organi-
sational structure at the start of 2013 in order to support the
company's strategy.
We still have a lot of potential to improve our performance.
Accordingly, we have set our EBITA target for 2015 at NOK
1.1 – 1.2 billion. This represents an increase of 70% from the
current level. We have based this on analysis of our market
potential and an extensive strategic process that is well
anchored throughout our organisation.
I would like to comment on the three main priorities for
realising our target.
Firstly, EVRY has a unique regional position which we intend
to reinforce and develop further. We have a local presence
with delivery capacity and extensive expertise in 50 towns
and cities throughout the Nordic region - this is a unique
network which no other company in our industry can offer.
This network gives us closeness to our customers.
The second major priority is a sharper focus on industry-
specific solutions. EVRY operates with a number of verticals
that offer major growth potential in both the Norwegian and
Swedish markets, as well as in the Nordic market as a whole.
The industry-specific expertise this involves is an important
differentiating factor. Through geographic and cultural
closeness to customers and good business insight, we offer
customer-adapted solutions that create more added value
than standard services. As part of the strategy, we have made
Financial Services a separate Nordic industry vertical. Greater
focus on industry verticals also streamlines the interface
between units and ensures clearer value chain responsibility.
Among other industry verticals that offer significant potential
for development are Healthcare, Municipalities, Retail and
Oil & Gas, and in all of these areas EVRY already has an estab-
lished footprint and a profitable position that we can scale up.
A third main priority is a new and significantly improved
operating services organisation. Through the Future Proof