OPERATION NEXTERDAY COMPTEL FINANCIAL RESULTS Q4 AND 2015 Juhani Hintikka, CEO Helsinki, 18 th of February 2016 1 COMPTEL CORPORATION 2016
Q4 HIGHLIGHTS Net sales all time high at EUR 32.6 million (26.8), growth 21.7% Operating result EUR 5.6 million (3.9), growth 42.3% Very strong performance in Europe Significant growth also in APAC and Americas Both BU s grew significantly Intelligent Data: 19.8% Service Orchestration: 23.4% Order intake all time high, 12 months backlog at EUR 66.3 million (55.2), growth 20.2% 2 COMPTEL CORPORATION 2016
2015 HIGHLIGHTS Net sales all time high, EUR 97.7 million (85.7), growth 14% Book-to-bill over one, order intake EUR 100+ million All time high revenue and solid performance in Europe Strong growth in APAC and Americas continued Both BU s grew Intelligent Data: 7.1% Service Orchestration: 20.1% Operating profit, EUR 8.5 million (8.3), better than in 2014 but relatively lower due to significant investments during the year Net profit lower than in previous year, EUR 4.5 million (5.5) Due to changed withholding tax decision in 2015, 2014 taxes of EUR 0.3M was corrected in 2015. Dividend proposal EUR 0.03 (0.02) 3 COMPTEL CORPORATION 2016
OPERATING ENVIRONMENT AND OUR STRATEGY 4 COMPTEL CORPORATION 2016
MARKET ENVIRONMENT DEVELOPMENT IN 2015 CLOUD GENERATION & THE APP ECONOMY Smartphones are ruling all markets, revenue growth driven by data, content and applications Business and enterprise applications moving to cloud with rapid pace digital services drive VIRTUALIZATION & HYPERSPEED Telecom business is turning to software, network virtualization is becoming real. Trials are going on everywhere, Tier 1 operators leading the way. 5G is the next big opportunity for operators, early movers looking for trials INTERNET OF THINGS & BIG DATA IoT proceeding in various industry verticals creating a combination of huge data streams and wide array of digitized services - embedded analytics in key role 5 COMPTEL CORPORATION 2016 2015
CLOUD GENERATION THE APP ECONOMY INTERNET OF THINGS PERFECTING DIGITAL MOMENTS AND TRANSLATING THEM TO BUSINESS MOMENTS BY CONNECTING DEMAND AND SUPPLY HYPERSPEED VIRTUALISATION BIG DATA 6 6 COMPTEL CORPORATION 2016 2015
SOLID GROWTH STRATEGY EXECUTION IN 2015 SOLUTIONS WITH UNIQUE VALUE Strong market demand continues for FlowOne Fulfilment 30 Datarefinery upgrades completed basis for further Softblade sales New Monetizer policy control and charging solution introduced FWD Digital Sales Channel solution from zero to market in 12 months THOUGHT LEADERSHIP Operation Nexterday launched A New Playbook for the Age of Generation Cloud Nexterday North industry event gathered 500 global attendants with great feedback Comptel included in top 10 Network Functions Virtualization (NFV) orchestration specialists by Heavy Reading report CUSTOMER EXCELLENCE TDC Group honors Comptel as Best Performing IT Project Team for the second consecutive year New service center decided to be establish in Bangalore to meet market demand 7 COMPTEL CORPORATION 2016 2015
SOLID GROWTH STRATEGY EXECUTION IN 2015 NEW MARKETS & CUSTOMERS Record breaking EUR 12.5 million deal with Germany's leading mobile operator and EUR 5 million deal with British mobile operator New customer wins in Indonesia and Philippines aligned with strategic targets North America sales office established in Dallas LEVERAGE BY PARTNERS Salesforce.com ecosystem partnership continued to drive FlowOne deals Continuous customer engagement with key partners TCS, IBM, TechMahindra, Hitachi INSPIRED PEOPLE Continuous improvement in Employee Engagement in Comptel MyVoice survey First ever Comptel Hackathon organized with superb innovations Comptel team Dragon won second place in Ultrahack part of Slush hacks 8 COMPTEL CORPORATION 2016 2015
Q4 PERFORMANCE 9 COMPTEL CORPORATION 2016 2015
QUARTERLY PERFORMANCE 12 MONTHS ORDER BACKLOG CONTINUED TO GROW Net sales and order backlog EUR million 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Operating result and operating result % EUR million 6,0 5,0 4,0 3,0 2,0 1,0 0,0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 20,0% 18,0% 16,0% 14,0% 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% Net sales Order backlog Operating result Operating result % Net sales +21.7% vs Q4 2014 Operating result 17.2% for Q4 2015 10 COMPTEL CORPORATION 2015 2016 JOINT CONFIDENTAL
BUSINESS UNIT BREAKDOWN EUR million 35 30 25 18,0 20 14,6 15 8,1 11,5 11,7 11,8 12,1 13,2 10 5 9,9 9,1 8,6 12,2 9,1 9,6 9,2 14,6 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Intelligent Data Service Orchestration 11 COMPTEL CORPORATION 2016
PROJECT & LICENSE AND RECURRING BUSINESS BREAKDOWN Support and maintenance grew in Q4 EUR million 35,0 30,0 8,6 25,0 20,0 15,0 10,0 5,0 8,9 9,1 8,3 12,3 8,4 9,9 8,0 18,8 8,9 8,5 8,5 12,1 13,2 13,9 24,0 0,0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Project&License Recurring 12 COMPTEL CORPORATION 2015 2016 JOINT CONFIDENTAL
GEOGRAPHIC NET SALES BREAKDOWN EUR million 35 30 25 20 15 10 5 0 15,7 11,8 7,1 8,1 6,8 8,7 8,1 9,2 5,7 7,4 7,3 8,9 5,9 6,3 6,8 6,0 6,4 3,2 3,8 3,5 3,3 4,1 4,6 4,8 2,2 1,9 2 2,8 2,4 3,1 2,5 3,2 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Americas Middle East and Africa Asia-Pacific Europe 13 COMPTEL CORPORATION 2015 2016 JOINT CONFIDENTAL
FINANCIAL POSITION EUR, million 31 Dec 2015 31 Dec 2014 Change, % Balance sheet total Liquid assets Trade receivables Interest-bearing debt Equity ratio, % 86.4 3.0 40.5 7.2 52.4 77.6 9.4 27.7 7.6 52.4 +11.3-67.6 45.9-5.2-0.1 14 COMPTEL CORPORATION 2016
OUTLOOK FOR 2016 Comptel expects the 2016 net sales to continue to grow and operating profit to be in the range of 8-14% of revenue. Characteristically a significant part of Comptel s operating profit and net sales is generated in the second half of the year. 15 COMPTEL CORPORATION 2016
THANK YOU! LIFE IS DIGITAL MOMENTS. 16 COMPTEL CORPORATION 2016 JOINT CONFIDENTAL
Information on this presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The content of the presentation is only a summary of the company's performance. The company makes no representation or warranty as to the continued accuracy, content or reliability of this data and states no obligation to update the data included in this presentation, as operational changes may occur over time. The content of this presentation is copyright Comptel Corporation. All rights reserved. Reproduction, transfer, distribution or storage of part or all of the contents in any form without prior written permission of the company is prohibited. 17 COMPTEL CORPORATION 2016