KBC Advanced Technologies plc Annual Results 31 December 2003

1
KBC Advanced Technologies plcAnnual Results31
December 2003
March 2004
2
Overview 2003

• Difficult trading conditions persisted through
  most of the year - exacerbated by the uncertainty
  created by the ownership discussions
• Core business remains in good shape
• Management team refreshed and have stabilised the
  business
• Staff morale improved significantly in final
  quarter
• Business being repositioned to improve the scope
  and depth of engagement with clients and improve
  service differentiation
• Progress on software development has been made -
  despite the continuing legal dispute
• results impacted by continuing weakness of US
• Dividend maintained

3
Operational highlights 2003

• Began to reap the benefits of the two
  acquisitions made in 2002
• Combined revenue up 37
• KBC Energy Services was the best performing
  business in 2003
• PEL enabled KBC to enter the strategic planning
  market
• Significant new licence sales in US, Asia and
  South America and overall software revenue up 10
  
• Expansion of RAM services into Upstream sector
• Weakness in Europe and China contrasted with
  better conditions in the Americas and Asia
• Latin America continues to be strongest market
  with further multi-year programmes added
• First PIP in South Africa
• Middle East, Korea and Japan continue to be
  strong areas of revenue

4
Summarised profit and loss account
12 months to 12 months to 31 Dec 2003 31 Dec
2002 000 000
Turnover 32,274 38,193 Operating
profit 704 1,487 Goodwill amortisation (490) (467)
Other operating exceptional items (2,397) (3,011)
Amounts written off fixed asset
investment - (1,451) Net Interest 200
318 Loss before tax (1,983) (3,124) Taxation
499 673 Profit after tax (1,484) (2,451) Div
idends (1,906) (1,938) Retained (loss)/profit
(3,390) (4,389)
Earnings per share - basic (3.19p) (5.08p)
- fully
diluted (3.17p) (5.08p)
- basic before goodwill and
exceptional items 1.37p 3.33p Average
number of shares in issue 46.5m 48.2m
5
Foreign exchange impact
At 31Dec At 31 Dec At 31 Dec 2003 2003 2002 00
0 000 000 at constant exchange rate

Turnover 32,274 33,976 38,193
Operating costs 31,570 32,767 36,706 _____ ___
__ _____ Operating profit before
goodwill 704 1,209 1,487 and exceptional
items
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Exceptional Costs
12 months to 12 months to 31 Dec 2003 31 Dec
2002 000 000

Software dispute, legal fees,
etc 1,325 1,565 Acquisition integration - 399 Re
organisation 878 1,047 Strategic
review 194 - ESOP share write down
____- 1,451 Total 2,397 4,462
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Summarised group cash flow statement
12 months to 12 months to 31 Dec 2003
31 Dec 2002 000 000
Net cash from
operations 275
1,257 Operating exceptional items
(1,846)
(2,022) Net interest received
200 318 Tax
(paid)/refunded
769 (1,847) Capital
expenditure
(257) (799) Dividends
paid
(1,906) (1,994) Purchase of
own shares -
(683) New shares issued
-
36 Translation difference
(173)
(123) Net cash outflow from acquisitions
(410) (4,738)
(3,348) (10,595)
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Summarised group balance sheet
At 31 Dec At 31 Dec 2003 2002 000 000
Fixed assets 7,756 9,288 Net current assets
(excl cash) 8,032 7,356 Cash 4,275 7,623 Creditors
due after 1 year
(300) (600) Provisions
(1,180) (1,100) Net
assets 18,583 22,567 Share capital and
reserves 7,466 7,466 Profit and
loss 11,117 15,101 18,583 22,567
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Revenues by region
19
20
27
32
49
53
20
58
22
10
Revenues by business area
11
Order book value
22M
35M
40M
28M
29M
24M
20M
12
Consultant utilisation
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Strategy

• Stabilise Business during 2004
• Build platform for future sustainable growth
• Neutralise impact of software dispute
• Retain control on costs
• Implement Strategy for Growth for 2005 and beyond
  
• Strategic Planning Studies- Commercial and
  Technical experience
• New software tools for plant optimisation and
  decision support
• Develop technical services based on remote
  performance monitoring
• Worldwide drive into Petrochemical
• Expand into Upstream Oil Gas
• Refocus on Client Relationships and Regional
  Business strategies
• Review capital structure dividend policyonce
  software dispute settled