PRESSRELEASE
NASDAQOMX:NYHR.IC
FORRELEASE:15:00GMT,TUESDAY,AUGUST30,2016
http://www.nyherji.is/english/investor-relations/
Nyherji announces positive half year results with EBITDA of
ISK439millionandnetprofitofISK111million
REYKJAVIK–Aug30,2016–NyherjiGroup(NYHR.IC),Iceland’sleadingITservicesprovider,announces
itsresultsforthesecondquarterandfirsthalfof2016.
FinancialHighlights:
• ProductandservicerevenuestoodatISK3.79billionforthesecondquarter,anincreaseinrevenue
of12%ascomparedwithQ22015,andISK7.13billionforthefirstofthehalfyear,ayear-on-year
improvementof7.2%,ascomparedwithH12015[Q22015:ISK3.39billion,H12015:ISK6.65billion]
• GrossprofitamountedtoISK931million(24.5%)inthesecondquarterandISK1.82billion(25.5%)in
thefirsthalfof2016[Q22015:ISK830million(24.5%),H12015:ISK1.64billion(24.6%)]
• EBITDAamountedtoISK259million(6.8%)inthesecondquarterandISK439millioninthefirsthalf
[Q22015:ISK227million(6.7%),H12015:ISK452million(6.8%)]
• NetprofitinQ2totalledISK73millionandISK111millioninthefirsthalf[Q22015:ISK69million,H1
2015:ISK111million]
• Slightimprovementofequityratioof30.8%atquarter-endfrom29.5%attheendofthelastquarter
• Nyherjihf.hasretainedUSadvisoryfirmAGCPartnersLLCtosupportthepreparationoftheprocess
forapotentialsaleofTempoehf.
“Nyherjihasdemonstratedimprovedquarter-on-quarternetperformance,althoughoverallourfirsthalf
resultshavebeenmarkedbycostincreasesfromwagerenegotiations,”commentedFinnurOddsson,
GroupChiefExecutive,“TheGroupachievedanetprofitofISK73millioninthesecondquarterandISK
111millionforthefirstsixmonthsoftheyear,whichiscomparablewiththefirsthalfof2015.
TheGroup'soperationsremainpromisingandsoftware-relatedactivitiesareflourishing,bothataGroup
andasubsidiarylevel.Tempo’sincomeincreasedbyalmost40%inUSdollartermsanditscustomer
baseisgrowingrapidly.Tosupportthistrend,wehavebolsteredTempo’sinternationaloperationswith
staffincreasesinMontrealandbyopeningnewofficesinSanFrancisco.TMSoftware’srevenue
increasedbyaquarter,withexcellentdemandforsolutionsacrossallsub-specializationsofthe
company.AppliconSwedenalsoshowedincreasedincomeandastrongperformancewiththebusiness
engagedinsubstantialandexcitingprojects,especiallyinthefieldofcorebankingsolutions.
SalesofsoftwaresolutionsbytheNyherjiparentcompanyhavebeengrowingwithanincreasedfocus
on3rdpartysolutions,aswitnessedbyNyherjibeingnamedpartneroftheyearbyMicrosoftforthe
firsttime.Salesofcomputersandrelatedequipmentperformedwell,particularlyinaudiosolutionsand
newhostingsolutions,whichthecompanyoffersincollaborationwithVerneGlobal.
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Afterachallengingfirstquarter,wearequitesatisfiedwiththeoverallresult.Ourorderbookremains
strong,withveryinterestingopportunitiesbeingpresentedbyoverseassubsidiariesandpleasing
prospectsfortheGroupasawhole.Wageincreasesfromunion-ledagreementsatthestartoftheyear
willcontinuetoremainachallengetoNyherjiandwewillcontinuetolookforoptimisationofourcost
base.”
OPERATINGRESULTS,H12016
Half-yearOverview-KeyFigures
ISKmillions
H1 2016
Soldproductsandservices
H12015
7,126
6,649
(5,310)
(5,011)
1,816
1,638
(1,618)
(1,346)
Operatingprofitsbeforefinancialincomeand
financialexpenses
199
292
Netfinancialexpenses
(83)
(112)
Profitbeforetax
116
180
Incometax
(19)
(37)
Profitfortheperiod
97
143
Translationdifference/foreignsubsidiaries
14
(32)
Totalprofitfortheperiod
111
111
EBITDA
439
452
Costofgoodssoldandcostofsoldservices
Margin
Operatingcosts
• SalesofgoodsandservicesamountedtoISK7.13billionforthefirsthalfof2016,comparedwithISK
6.65billionoverthesameperiodin2015,anincreaseof7.2%year-on-year
• GrossprofitamountedtoISK1.82billion(25.5%)inthefirsthalfof2016,comparedwithISK1.64
billion(24.6%)duringthesameperiodin2015
• Operatingexpenseswere1,618millionforthefirsthalfof2016(22.7%ofrevenues),comparedto
1.346million(20.2%ofrevenues)inthefirsthalf2015
• Salariesandrelatedexpensesasapercentageofrevenuewas37.9%inthefirsthalf,comparedto
35.7%inthefirsthalfof2015
• EBITDAamountedto439million(6.2%)inthefirsthalf,comparedwith452million(6.8%)inthe
sameperiodin2015
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• Netprofitinthefirstquarterof2016amountedto111million,thesametotalprofitandthesame
periodin2015
BALANCESHEET30.06.2016
BalanceSheet30.06.2016-KeyFigures
ISKmillions
30.06.2016
31.12.2015
Fixedassets
3,375
3,187
Currentassets
3,260
3,719
TotalAssets
6,635
6,907
Equity
2,041
1,930
Long-termobligations
2,285
2,521
Short-termdebts
2,309
2,455
TotalEquityandliabilities
6,635
6,907
Currentratio
1.41
1.52
Equityratio
30.8%
28.0%
• CurrentassetsdecreasedbyISK459millionfromthecloseof2015,fromISK3.72billiontoISK3.26
billion.CashflowwasreducedbyISK326millionfortheperiodonaccountofpaymentofinterestbearingloansandinvestmentsfinancedfromoperations.Tradeandotherreceivableswerelowered
byISK184millionfortheperiod
• Theequityratiois30.8%fortheendofJune2016,aslightincreasefrom28.0%attheendof2015
• Currentratiostoodat1.41attheendofJune2016,downfrom1.52attheendof2015
• Interest-bearinglong-termliabilitiesareISK2.28billion,adecreaseofISK237millionfromtheendof
2015
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PRESSRELEASE
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CASHFLOW30.06.2016
CashFlow-KeyFigures
ISKmillions
H12016
H12015
506
274
Investingactivities
(493)
(226)
Financingactivities
(334)
(3)
Increase(decrease)incash
(321)
45
Impactofexchangeratechangesoncash
(5)
(1)
Cashatbeginningofyear
809
79
Cashatcloseofperiod
483
123
Cashfromoperations
• CashflowfromoperationsstoodatISK506millionattheendoffirsthalfof2016,ascomparedwith
ISK274millionforthecloseofH12015
• InvestmentswereISK493millioninthefirsthalfof2016,comparedwithISK226millionforthesame
periodlastyear.Differencescanlargelybeattributedtosignificantlyhigherinvestmentinoperating
fundsinthefirsthalfof2016andanincreaseinthecapitalizationofintangibleassets.
• FinancingactivitiesarenegativebyISK334millionintheperiodcomparedtoISK3millionlastyear.
Thedifferenceliesmainlyinthepaymentofinterest-bearingloansthatoccurredinthefirsthalfof
2016andtheincreaseinoverdraftlastyeartoISK108million,butnochangeoccurredinthefirst
halfof2016.
• CashattheendoftheperiodamountedtoISK483millioncomparedwithISK123millionattheend
ofthefirstquarter2015
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OPERATINGRESULTSFORQ2,2016
ISKmillions
Q22016
Q12016
Q42015
Q32015
Q22015
Soldproductsandservices
3,794
3,332
3,663
3,019
3,386
Costofgoodssoldandcostof
soldservices
(2,863)
(2,447)
(2,707)
(2,192)
(2,556)
Margin
931
885
956
828
830
Operatingcosts
(800)
(818)
(750)
(678)
(685)
Operatingprofitsbefore
financialincomeandfinancial
expenses
131
67
206
150
145
Netfinancialexpenses
(38)
(45)
(33)
(72)
(80)
Profitbeforetax
93
23
173
78
66
Incometax
(18)
(1)
(27)
(20)
(14)
Profitfortheperiodfrom
continuingoperations(Loss
fromdiscontinuedoperations)
75
22
146
58
52
Foreignexchangeconversion
adjustment
(2)
16
(11)
24
18
Totalprofitfortheperiod
73
38
135
82
69
EBITDA
259
180
315
24015
227
• SalesofgoodsandservicesamountedtoISK3.79billioninthesecondquarter,comparedwithISK
3.39billioninthesameperiodin2015,anincreaseof12%year-on-year
• GrossprofitamountedtoISK931million(24.5%)inthesecondquarter,comparedwithISK830
million(24.5%)inthesecondquarterofthepreviousyear
• OperatingexpenseswereISK800millioninthesecondquarter(21.1%ofrevenues),comparedwith
ISK685million(20.2%ofrevenues)inthesameperiodin2015
• NetfinancialexpensestotalledISK38millioninthesecondquarter,comparedtoISK80millionfor
thesameperiodlastyear
• EBITDAamountedtoISK259million(6.8%)inthesecondquarter,comparedwithISK227million
(6.7%)inthesameperiodlastyear
• NetprofitinthesecondquarterwasISK73million
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Revenuegrowthattheparentcompanylevel
Nyherji,theparentcompany,exceededprojectionsinthesecondquarterafteradipinthefirstquarter.
Mostareasofthecompany'soperationsshowedgrowthoverthequarter.Proportionally,thegreatest
growthoccurredinsoftwaresolutionsandaudio-visualequipment.Withincreasedemphasison
softwaresolutionsNyherjiwasproudtobechosenasMicrosoft’sIcelandPartneroftheYearforthefirst
time.
ThecompanyrelocateditshostingservicestodatacentresatVerneGlobalduringtheperiodandisnow
abletoofferenhancedserviceofferingsandoutstandinghostingsolutions,enablingthecompanytobid
evermorecompetitivelytowardsbothdomesticandforeigncustomers.
Whilelabourcostshavesoaredyear-on-yearduetounion-ledwageagreementsthecompanyhas
investedheavilytostrengthenthesolutionsthatitoffers.Thecompanyhasinvestedinanewgenerator
roominVerne,newmeetingandstafffacilitiesinReykjavikandhasalsobeenboostedbyinvestmentin
softwaresolutions.
TheGrouphasfocusedonincreasingsalesofLenovocomputerstoindividualsaswellasSonyTVsand
cameraequipment,frombothSonyandCanon.
Theoutlookfortheparentcompanysalesremainspositive.
TMSoftwareehf.:Incomegrowthandimprovedperformance
TotalrevenuefromTMSoftware,whichspecializesinproprietarysoftwaredevelopmentandcustom
solutionsforcustomers,was24%higherinthefirsthalfcomparedwiththesameperiodlastyear.There
wasstrongdemandforprofessionalservicesandsolutionsacrossallthreespecialtyareas,comprising
healthcare,travelsolutions,websitesandspecialsolutions.Meanwhile,operatingexpensesremained
levelandperformanceimprovedconsiderably.
Prospectsforthesecondhalfoftheyeararelookingpositiveinlightofasolidsalespipelineand
opportunitiesfromsoftwarelicensesales.
Tempoehf.:Growthandconsolidationofinternationaloperations
Tempo,whichdevelopstimetracking,reportingandprojectmanagementsolutions,hadrevenuesof
USD$3.2millionforthesecondquarter,analmost40%increasefromthepreviousyear.Revenuesfrom
cloudsolutionsincreasedby81%comparedwiththesameperiodlastyear.
Maywasarecordmonthintermsofthenumberoftrialsand750newlicensesweresoldtocustomers
inthequarter,a50%increasefromthepreviousyear.Thecompanynowcountsover9000customers
coveringmorethan100countries.NewcustomersincludeinsurancecompanyGeico,LiverpoolFootball
Club,TexasInstrumentsandUnderArmour.
TempoopenedanewofficeinSanFranciscoduringthequarterandcontinuestobuilditsteamin
Montreal,nowemploying11people.IntandemwiththisactivitytheIcelandofficewasrestructuredand
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headcountslightlydecreased,fortravelandtransportprojectsamongotherareas.Thepurposeofthe
changesistoadaptthecompany'sactivitiesbettertocustomerneedsandpositionitincloserproximity
toitslargestgeographictargetmarket.Over90peoplearenowworkinginTempo,including14inNorth
America.ItisanticipatedthatTempo’steaminNorthAmericawillcontinuetogrowalongsidecontinued
growthinrevenueandnewcustomeraccounts.
Nýherjihf.hasretainedAGCPartnersLLCtosupportthepreparationofapotentialsaleofTempo.
Decisionsregardingthesalesprocess,whetheritwillbeinitiatedornot,includingpossibletimingand
implementationhavenotyetbeenmade.
AppliconinIcelandperformedbelowexpectations
TheperformanceofthesoftwarecompanyAppliconIcelandwasbelowexpectationsinthefirsthalf.
Greatemphasishasbeenplacedonthecontinueddevelopmentofhumanresourcessolutionsand
compensationplansduringtheperiod,reflectingthecompany'sperformance.Morenewcustomers
signedupfortheKjarniHRsolution,whichensuresastablelong-termfeeincome.
Theprojectportfolioremainsgoodandprospectsforsalesofthecompany'ssolutionsaregoodinthe
secondhalf.
AppliconABinSwedenachievespositiveresults
AppliconinSwedensawasignificantimprovementinitsoperatingperformanceinthesecondquarter
andfirsthalf.Totalrevenueincreasedby17%duringthefirstsixmonthsoftheyearcomparedtothe
sameperiodlastyear.Betterutilizationofspecialistresources,higherbillablehourlyratesandincreased
demandforexpertsaretheprinciplereasonsfortheimprovementofthecompanyresultsoverthe
period.
Thecompanyhasasolidprojectpipeline,especiallyfromcontractrenewalbyexistingcustomersand
newimplementationprojectsforSAPcorebankingsolutions.
GroupProspects
TheoutlookforNyherjiGroupisfavourableinlightofastrongpipelineandthepick-upinperformance
inthesecondquarter. Shareholders
Themarketvalueofthecompanyattheendofthesecondquarterof2016wasISK7.695billion.The
closingpriceofsharesinthequarterwasISK17.10pershare.OutstandingsharesissuedasofJune30,
2016were450millionand377employeeswereshareholders.
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AnalystandInvestorPresentationonAugust25,2016
ApresentationforinvestorsandanalystswillbeheldonThursday,August25,2016atthecompany's
headquartersatBorgartun37inReykjavik,startingat08:30localtime.FinnurOddsson,GroupCEO,will
presenttheresultswhichwillbestreamedliveviathecompany'swebsite.Thepresentationofthe
meetingwillbeaccessibleatthecompany'swebsite,www.nyherji.is,afterthemeeting.
FinancialCalendar2016
Scheduledpublicationdatesforthefinancialyear2016:
•
•
•
10/26/2016
01/31/2017
03/03/2017
Thirdquarter2016
Fourthquarterandfull-year2016
AnnualGeneralMeeting2016
ApprovalofFinancialResults
ThisinterimstatementwasapprovedbyNýherjihf.onthe24thAugust2016,inaccordancewith
InternationalFinancialReportingStandards(IFRS).Theinterimfinancialreporthasneitherbeenaudited
norreviewedbytheCompany'sauditors.
###
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AboutNyherjihf.
Nyherji hf. (NASDAQ OMX: NYHR.IC) is an established listed Nordic IT services provider with offices in
Iceland and Sweden. For over two decades the company has been a world-class technology supplier,
application developer, systems integrator, facilities manager and expert business process consultancy,
with corporate roots that can be traced back to 1899 and the inception of “office machines”. Nyherji
aimstobethetechnologypartnerofchoiceforbusinesses,fromthesmallesttothelargestenterprises.
With expertise in understanding and linking the needs of enterprise customers to competitive
technology solutions, Nyherji uses its deep knowledge of mission-critical processes, hardware and
applicationrequirements,tofocusongovernmentandindustriessectorswithhighsupportneedssuch
ashealthcare,financialservices,logisticsandaviation.
TheboardcomprisesBenediktJohannesson,Chairman,HildurDungal,EmiliaThordardottirandEmil
Kristjansson,withGudmundurJonssonasanalternatemember;FinnurOddssonistheGroupCEOof
Nyherji.
Formoreinformation,pleasevisitwww.nyherji.is/english/investor-relations/
ForwardLookingStatements
Statementsinthispressreleasethatarenotbasedonhistoricalfactsareforward-lookingstatements.
Although such statements are based on management’s current estimates and expectations, forwardlookingstatementsareinherentlyuncertain.Wethereforecautionthereaderthatthereareavarietyof
factors that could cause business conditions and results to differ materially from what is contained in
our forward-looking statements, and that we do not undertake to update any forward-looking
statements.Allforward-lookingstatementsarequalifiedintheirentiretybythiscautionarystatement.
ContactInformation
NYHERJIhf.
FinnurOddsson
GroupChiefExecutive
fo@nyherji.com
Tel:(+354)8620310
GunnarPetersen
GroupChiefFinancialOfficer
gp@nyherji.com
Tel:(+354)8259001
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