Novabase

Financial and stock performance

Financial and stock-performance

Changes in key indicators

The year 2016 was marked by the sale of Infrastructures & Managed Services business (“IMS Business”).

The Turnover and EBITDA presented below do not include the Infrastructures & Managed Services business, discontinued in 4th quarter of 2016.

Turnover

  0M
  0M    +16%
  0M    +7%

This growth confirms the repositioning that Novabase has been operating in recent years to accelerate internationalization, evolving from a geographic leadership with a broad offer to a strategy of leadership through specialized offers to the global market.

Europe was the continent with greater expression in 2016, rising to 66% of international business.

2015

0%

0%

2016

0%

0%

EBITDA

EBITDA reached 5.9 M in 2016, a 51% decreased compared to the 12.0 M obtained in 2015, reflecting the reinforcement of the international expansion strategy, but mainly the 7 M extraordinary cost recorded in a project.

9.2%
 0M
9.4%
 0M  +19%
4.4%
 0M  -51%
EBITDA%

Results

Consolidated Net Profit, after Non-Controlling interests, reached 9.6 M, showing an increase of 29% compared to 7.4 M in 2015. To highlight the gain on the disposal of IMS Business in 2016.

2.8%
 0M
5.8%
 0M  +19%
7.1%
 0M  -51%
RL%

Earnings per Share were 0.31 Euros in 2016, registering an increase of 29% compared to the 0.24 Euros in 2015.

Cash

In 2016, Novabase shows a positive evolution in cash generation. Novabase ended 2016 with 25.7 M in net cash, which compares to 11.3 M in 2015, a cash generation of 14.4 M€ that does not yet reflect the cash inflow from IMS Business disposal.

On May 16, 2016, Novabase paid its shareholders a total amount of 3.8 M (0.12/share). Additionally, on May 2016, occurred the payment of 1.2 M to Non-controlling interests.

Net Cash

Capital Expenditure

Capital Expenditure Non-recurring Recurring Total
Work in Progress
Work in Progress 0.2 0.2
Transfer to Intangible Assets -0.1 -0.1
Sub-total (1) -0.1 0.2 0.1
Intangible Assets
R&D 0.0 0.0
Industrial Property and Other Rights -0.1 -0.1
Goodwill -9.0 -9.0
Sub-total (2) -9.1 0.0 -9.1
Tangible Assets
Transport Equipment / Leasing / OR 0.5 0.5
Other Tangible Assets -4.7 1.8 -2.9
Sub-total (3) -4.2 1.8 -2.4
Total -13.4 2.0 -11.4

Values in millions of Euros

Human Resources

In terms of human resources, Novabase had an average of 2484 employees in 2016, an increase of 4% compared to 2390 in 2015, numbers that still include the employees assigned to IMS segment.
The following table shows the average number employee’s breakdown, during 2016, among Novabase’s various business areas:

Average number
of employees

Business Solutions

In 2016, Business Solutions had in average a team of 1936 consultants, and generated 97% of Novabase’s total Turnover and 103% of the total EBITDA.

Turnover BS

 0 M
 0 M  +17%
 0 M  +7%

This evolution reflects the continuation of international growth (+18%) and the pressure in the domestic market.

EBITDA BS

8.2%
 0 M
9.4%
 0 M  +35%
4.6%
 0 M  -47%
EBITDA%

EBITDA was penalized by the extraordinary cost recorded in a project (7 M).

Infrastructures & Managed Services

IMS Sale
  • 2016, 12th October

    purchase and sale agreement with VINCI Energies Portugal
    - price agreed: 38.365 M

  • 2017, 5th January

    sale conclusion
    - estimated final price: 44.037 M

The sale was substantially completed at the end of 2016 in which Novabase recorded a gain in the amount of 17.6 M.

Venture Capital

Venture Capital had in average a critical mass of 55 employees in 2016, and generated 3% of Novabase’s Turnover and -3% of the total EBITDA.

Turnover VC

 0 M
 0 M  +6%
 0 M  -12%

EBITDA VC

34.9%
 0 M
10.5%
 0 M  -68%
-4.4%
 0 M  -137%
EBITDA%

Stock Performance

Excluding the shareholder remuneration, the appreciation of Novabase share price would have been 23%.

In this period, a dividend of 0.12/share was distributed.

The Board of Directors will propose to the General Meeting of Shareholders to be held on May 4, 2017, the distribution of dividends in the amount of 4.7 M, corresponding to 0.15 per share.

The evolution of Novabase share prices compared to other companies in the IT sector in Europe, in 2016, was as follows:

The average price target disclosed by the analysts who cover Novabase is 3.07 Euros (average up-side of 23%).

Share turnover accounted for 9% of Novabase’s capital, with 2.8 million shares traded, approxi-mately half of the values occurred in 2015 (turnover of 18% of capital, with 5.7 million shares trad-ed).

Summary 2012 2013 2014 2015 2016
Minimum price () 1.660 2.290 2.090 2.070 1.879
Maximum price () 2.320 3.110 4.100 2.619 2.490
Volume weighted average price () 2.050 2.790 3.183 2.350 2.145
Last tradable day price () 2.300 2.610 2.214 2.114 2.490
Nr. of shares traded (millions) 4.9 8.3 5.9 5.7 2.8
Market cap. in the last day (M) 72.2 82.0 69.5 66.4 78.2

Outlook for 2017

Novabase maintains as priorities for 2017 the strengthening of investment in R&D with the aim of specialize its offerings and make them more suitable for the most sophisticated markets. On the other hand, it will maintain the strategy to limit its activity in the most exposed to volatility and foreign exchange difficulties geographies.

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