EVRY: Stronger EBITA and strengthened EBITA margin in the first quarter

(Oslo, 29 April 2015) EVRY reports EBITA of NOK 152 million for the first quarter of 2015 compared to NOK 143 million for the first quarter of 2014. EBITA margin increased from 4.4% for the first quarter of 2014 to 4.7% for the first quarter of 2015.

The group's operating revenue increased organically by 1% to NOK 3,256 million in the first quarter, a result driven by good growth in the EVRY Financial Services segment.

"We are seeing the results of the improvement actions the company has implemented, and we are satisfied with the improvement in EBITA seen in the first quarter. We operate in a dynamic industry in which it is important to be able to rapidly change and adapt to the market. It is for this reason that EVRY is continuing to implement improvement measures that will make the company more competitive in the future", comments Björn Ivroth, CEO of EVRY.

Key figures and main features of the first quarter of 2015

Operating revenue of NOK 3,256 million, representing organic growth of 1% from the first quarter of 2014

Organic growth in the EVRY Financial Services segment

EBITA before non-recurring items of NOK 152 million (NOK 143 million in the first quarter of 2014)

Pre-tax profit (EBT) of NOK 89 million (NOK 70 million in the first quarter of 2014)

Earnings per share (EPS) of NOK 0.34 (NOK 0.31 in the first quarter of 2014)

Cash flow from operations NOK -13 million (NOK 47 million in first quarter of 2014)

The group's order backlog totalled NOK 16.9 billion at 31 March 2015

First quarter 2014 figures for EVRY's business areas

The EVRY Financial Services segment reports operating revenue of NOK 922 million for the first quarter of 2015 as compared to NOK 885 million for the first quarter of 2014, representing organic growth of 4%. EVRY Financial Services produced EBITA of NOK 53 million in the first quarter of 2015 as compared to NOK 51 million in the first quarter of 2014.

The EVRY Sweden segment reports operating revenue of NOK 876 million for the first quarter of 2015 as compared to NOK 903 million for the first quarter of 2014, representing an organic decline of 2%. The EVRY Sweden segment produced EBITA of NOK 56 million in the first quarter of 2015 as compared to NOK 54 million in the first quarter of 2014.

The EVRY Norway segment reports operating revenue of NOK 1,539 million for the first quarter of 2015 as compared to NOK 1,623 million for the first quarter of 2014, representing an organic decline of 4%. EVRY Norway produced EBITA of NOK 75 million in the first quarter of 2015 as compared to NOK 82 million in the first quarter of 2014.

Company outlook

The market for IT services in the Nordic region continues to grow moderately, and there are no signs that the picture will change significantly in 2015. It is obvious that severe cutbacks at oil-related businesses will also influence IT investment in the sector, but other businesses and industries and the public sector are expected to make a positive contribution to the growth and development of the IT market. The way in which digitalisation strengthens businesses' competitiveness and improves the public sector's use of resources creates stable demand for IT services and solutions. Research carried out by the analysis company Radar has identified that the use of new market channels and a greater degree of self-service are the trends that will have the greatest effect on businesses and organisations over the next three to five years. The need to integrate these new solutions with existing systems, combined with the trend for all products and services to contain ever more IT, are driving demand for integration services and effective operating services.

EVRY is experiencing demand trends that closely fit Radar's analysis. There continues to be pressure on prices in the market for consulting services involving generic expertise, but customers greatly value the special expertise that is required to introduce and integrate new solutions that support their strategic development. This also applies to expertise and solutions that are specific to customers' own industries. These trends are basically being seen in the same way in Norway and Sweden, but the varying growth situations in the countries and across their industries are causing EVRY's business areas in the Nordic region to experience differing results. In this context, the bank and finance market in Norway and Sweden continues to stand out as the strongest market for EVRY.

The outlook for EVRY's development and growth in 2015 is now considered to be somewhat weaker than was the case last quarter. The consulting market in general and the market for operating services for large customers are both expected to be characterised by pressure on prices, with this largely offset by volume growth. Over the longer term, EVRY's specialisation in specific industries and its focus on attractive regions, as well as the introduction of new technology solutions and delivery models, are expected to lead to EVRY achieving a higher rate of growth than the general IT services market in the Nordic region.

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

Contact persons:

Björn Ivroth, CEO EVRY, Tel: +47 06500

Knut E. Røsjorde, CFO EVRY, Tel: +47 95205786

Geir Remman, VP Corporate Communications, EVRY, Tel: + 47 970 55 017

About EVRY

EVRY is one of the leading IT companies in the Nordic countries, with a strong local and regional presence in 50 Nordic towns and cities. Through its knowledge, solutions and technology, EVRY contributes to the development of the information society of the future, and so creates value for the benefit of its customers and for society as a whole. EVRY combines in-depth industry knowledge and technological expertise with a local delivery model and international strength.

EVRY has some 10,000 employees, and the company is committed to demonstrating that Nordic customers are best served by a supplier that understands Nordic business from the inside. EVRY reports annual turnover approaching NOK 13 billion. The company is listed on the Oslo Stock Exchange and operates from headquarters at Fornebu in Bærum, with major activities in both the Norwegian and Swedish markets.