EVRY initiates measures to strengthen competitiveness

(Oslo, 17 August 2015) Due to unsatisfactory financial performance, EVRY has conducted a thorough review of the cost base. The review concludes that costs and expenses currently are too high, and not aligned with the company's market position and growth performance. To strengthen profitability and long-term competiveness the Company has decided to intensify previously announced cost reduction measures and launch new initiatives.

The cost reductions will affect all reporting segments. The following measures will ensure a lower cost base when the company enters into 2016:   

• Complete the cost reduction program notified 25^th of November 2013, when it became clear that the non-mainframe services agreement with DNB was subject to phase-out during 2014 and 2015, with an annual negative revenue impact of respectively NOK 200 and NOK 400 million as previously announced. The completion of the program will take place by the end of 2015.
• Realize synergies of the reorganization of the EVRY Norway segment - combining Industries Norway and Regions Norway to simplify the organisation and drive efficiency.
• Realize synergies by implementing new and simplified operating model in EVRY Sweden.
• Reduce the number of legal entities in the EVRY Sweden segment to harmonize business operation, create synergies and increase efficiency. 
• Reduce Selling, General and Administrative Expenses by streamlining staff and support functions on Corporate and Business Area level.

- To reach the goal of being the Nordic Champion in IT Services we have to improve our competitive position and increase profitability. This is particularly important to create room for investments in new services and knowledge. Aligning costs to revenue level and growth momentum is a first and important step. In addition, we need to put in place measures that simplifies internal processes and helps the company become even more agile and customer centric, says CEO Björn Ivroth.    

The measures described above will affect around 500-550 FTE's in Norway and Sweden. In addition to reducing the workforce several other initiatives are taken to reduce the overall cost base - including a reduction of consultancy spend and administration costs. The restructuring has a yearly estimated cost effect of NOK 400-500 million. Provisions related to the restructuring is estimated to NOK 260-320, and will be recognized in the third and fourth quarter of 2015. 

The right-sizing measures have a total estimated cost reduction effect of NOK 400-500 million per year. The right-sizing is estimated to a total cost of NOK 260-320 million and will be provisioned in the third and fourth quarter of 2015. 

This information is subject to disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

For further information, please contact:

Knut E. Røsjorde, CFO, tel +47 95205786

Jørn Bremtun, VP Communications, tel +47 92209735