EDB – pursuing Nordic leadership

An increasingly important Nordic IT partner

• Norway:– Largest IT company - + 30% market share in IT-operations

• Nordic:– IT operations: among top three – Distributed operating services partner: number one – Software solutions and services to financial institutions: leading-edge

competencies and critical mass• Global:

– Leading software supplier to the global telecom industry (revenue assurance)

• 2,600 employees, 2,430 in Norway• Operations in 7 countries

• 2003 revenue: NOK 4.3 billion • Market cap at 30.04: NOK 4.0 billion

Pursuing Nordic leadership

New EDB - positioned for growth

The Nordic market offers considerable potential

Growth through improvement programs and structural moves

From portfolio based to one integrated company

Business Consulting

EDB Bank & Finance

EDB IT Operations

EDB Telecom

TIBE (ad agency) Fellesdata Teamco Telesciences (mediation)US operationsNorwegian operationsDolphin (call centres) Novit (consolidated in FD) Unigrid (Sweden)

Stradec Infovention (Sweden) PDS Incatel (network mngt)

General consulting SysCon Dialogue (print/mail) 4telResource consulting

Oracle / SAP competencies

Consulting services

Customer Care & BillingMaxWare (Benelux)

Ster (Baltic)

From portfolio based to one integrated company

TIBE (ad agency)

Dolphin (call centres)

Stradec

General consultingResource consulting

Oracle / SAP competencies

Fellesdata

Novit (consolidated in FD)

Infovention (Sweden)

SysCon

MaxWare (Benelux)

Ster (Baltic)

EDB Bank & Finance

Business Consulting

EDB IT Operations

EDB Telecom

Teamco Telesciences (mediation)US operationsNorwegian operations

Unigrid (Sweden)

PDS Incatel (network mngt)

Dialogue (print/mail) 4telConsulting services

Customer Care & Billing

Oracle/ SAP competencies transferred from BC

The new EDB – restructured and profitable

EDB Business Partner ASA

2003 Revenue: NOK 611 m

621 employees

Revenue share 2003

16%

EDB Telecom

2003 Revenue: NOK 2 886 mill

1,197 employees

Revenue share 2003

65%

EDB IT Operations

2003 Revenue: NOK 803 mill

675 employees

Revenue share 2003

19%

EDB Bank & Finance

Focus area 1 – Efficient operations

• New management model and mode of operations

• Common vision and values to ensure alignment

• Consolidation of staff and support functions

• Cost reduction program introduced

– Target: NOK 350 mill accumulated 2004-2006

– Key areas; occupancy, software, purchasing, internal ICT

• Continuous cost control focus

Focus area 2 – Customer and market focus

• Leveraging one brand• Sales, market intelligence and

marketing functions strengthened

• Extensive sales and marketing training program

• Management Development Program across Business Areas

• Business Development Unit established

• New CRM-system

Position 2004 – ready for profitable growth

• Concentration on core competencies

• Stronger financial position – returned to profitability

• Solid customer base – long-term contracts

• Customer and market focus • Efficiency through one

company, one brand

-6 %-4 %-2 %0 %2 %4 %6 %8 %

10 %12 %

Q1 Q2 Q3 Q4

2002 2003 2004

EBITA-margin EDB Business Partner

Pursuing Nordic leadership

New EDB - positioned for growth

The Nordic market offers considerable potential

Growth through improvement programs and structural moves

Nordic IT market returns to growth

External IT-spending - expected growth (%)

-6 %

-4 %

-2 %

0 %

2 %

4 %

6 %

8 %

2003 2004 2005 2006 2007

Nordic

Nordic IT market – geographical split (%)

24 %

18 %

19 %

39 %

Denmark Finland Norway Sweden

Source: IDC/EDB, 2004

Outsourcing – potential NOK 80 bn. market

Out-sourcing

Hardware

SoftwareSupport Services

Project Services

1915

20

19

27

2004 Nordic external IT-spending: NOK 200 bn

Share in %

Finland 17%

Sweden 41%

Norway 20%

Denmark 22%

NOK 40 bn

Potential market

2 x NOK 40 bn

Source: IDC/EDB, 2004

Significant growth potential in other verticals

16 %

9 %

75 %

Bank/Finance Telecom Other

External IT-spending by Industry

59 %29 %

12 %

Bank/Finance Telecom Other

EDB Revenue by Industry

Nordic leadership in IT operations

Nordic IT outsourcing revenue* 2003, selected major players.

EDSEDB DM Data

TietoEnator

IBM WM-data

CSC Ergo Group

5000

4000

2900

23001900

16001300

900

NOK m

1800

HP

*Infrastructure and applications ops.Source: IDC / EDB, 2004

Extensive range of products and services

Applications administration & maintenance

Applications operations & value-added services

Operation & maintenance of systems software

Infrastructure operations

Infrastructure management & maintenance

Business processes (BPO)

Applications development / BP / BP / BP

BP BP BP

Public sector

Distr. / IndustryTelecomBank /

Finance

With a comprehensive customer portfolio

Pursuing Nordic leadership

New EDB - positioned for growth

The Nordic market offers considerable potential

Growth through improvement programs and structural moves

A vision for the future

• Leading Nordic based on a vision of "Performance-driven innovation"

• Profitable growth through acquisitions and active partnership

• Delivering high value added services in verticals with high potential

• Taking a strategic role in expected consolidation of Nordic market

Bank & Finance – Pan Nordic growth

Bank/ Finance

• Customer demand and structural changes creating a new generation of IT-solutions

• Competitive advantage through unique skills

• Rejuvenated and refocused for Nordic expansion

• Growth through acquisitions and 3rd party alliances

Telecom – Restructuring after the Accenture-deal

• Two main product areas:– Mediation– Network Inventory

Management Systems• Restructuring according to

new business plan– New management in

Norway, US and EMEA • On-going global

consolidation– Attractive customer and

product portfolio

Telecom

Moving forward with two business lines

Telecom

Product areas What we offer 2003 Revenue

Mediation 115 mill NOK

Function to decrease costs:

• One system for all Mediation requirements• Offload downstream applications• Operations control• Automatic collection and verification of

incoming data• Accessibility to information

NIMS 122 mill NOK

Logistic system for network operators:

• Stock supply information• Manages network resources and capacity• Essential for time-to-customer deliveries• Modul-based system, flexible for customers

Significant growth potential in other verticals Distr. /

Industry/ Public

• Major outsourcing opportunities

• DnBNOR and Telenorcontracts creating scalability and market capability

• Mid-size companies representing multibillion market

• Local presence represents substantial competitive advantage

• External partnership –Telenor, Accenture, SAP and Oracle

Taking advantage of partnership opportunities

• EDB is preferred operating partner for Telenor in all Nordic markets

• Strategic marketing and supply collaboration in the Nordic market

• Targeting new customer segments actively in all Nordic countries

• EDB is preferred operating partner for Accenture in the Nordic market

• Dedicated resources and common objectives established

• New opportunities in pipeline as result of partnership

Strategic direction established for new EDB

• Restructured and refocused• Improved profitability with

strong cash flow• Financial position

strengthened• Improved backlog • Growing organically and

through M&A-activities• Partnerships established • Regained confidence from

key customers