Year-end report Cidron Delfi Intressenter AB May 1 – December 31, 2012

This year-end report refers to Cidron Delfi Intressenter AB and the Cidron Delfi Intressenter Group for the period from May 1 to December 31, 2012. Operations in the Cidron Delfi Intressenter Group now consist exclusively of Orc. As a result, the comments in this year-end report refer mainly to developments in Orc. The financial year of the Parent Company, and therefore also the Group, is now the calendar year, for which reason the periods commented on are January-December and October-December. The financial statements starting on page 7 cover the two abbreviated financial years from November 28, 2011, to April 30, 2012, and from May 1 to December 31, 2012, as well as the latest quarter from October to December 2012.

At the beginning of 2012, Cidron Delfi Intressenter AB acquired Orc Group through a public tender offer directed to the shareholders in Orc Group AB. Following the sale of Orc’s former subsidiaries and sub-groups CameronTec and Neonet at the beginning of October, continuing operations in the Cidron Delfi Intressenter group now consist solely of operations in Orc. Cidron Delfi Intressenter AB was formed on November 28, 2011, and Orc Group AB is consolidated as of January 1, 2012. There is no historical information for the Cidron group and the comparative figures for 2011 have been taken from Orc’s operations in the Orc Group AB group. The impact of operations in CameronTec and Neonet on Orc Group AB is reported as discontinuing operations.

  • Operating revenue for the period from January to December reached SEK 511m (574), a decrease of 11%. The drop in revenue was largely offset by lower expenses and CAPEX. Adjusted EBITDA was SEK 238m (260) and EBITDA-CAPEX was SEK 128m (146).
  • Operating revenue for the quarter from October to December amounted to SEK 120m (142), down by 15%. The drop in revenue was fully compensated by the sum of lower expenses and CAPEX. Adjusted EBITDA was SEK 60m (56) and EBITDA-CAPEX was SEK 32m (32).
  • Costs for January-December were reduced mainly through renegotiation of third-party agreements together with other rationalization programs and adaptations to the current market conditions.
  • A successful bond placement of EUR 60m was carried out in November.

CEO Torben Munch comments:

“The market climate in the past 15 months has been unfavorable and Orc’s revenue in 2012 declined by around 10% compared to 2011. However, the drop in revenue has been largely compensated by several successful rationalization and cost-cutting programs. Over the past six quarters, EBITDA-CAPEX has held steady at around SEK 30m per quarter. The latest initiative, which was launched in November, is aimed at realizing synergies from the regionalization of customer service and adapting the sales and service organization to the current market situation. This initiative has been carried out according to plan. At the same time that cost-efficiency is continuously in focus, we are investing significantly in new products and services. The number of employees in the product and development organization is around 100, close to half of all employees in the company.

In several respects, the past year was marked by restructuring of the business and adaptations to both new owners and changed market conditions. The former Orc Group was divided into three independent companies, a new organization was established and our cost-efficiency and internal processes were improved. In addition, our long-term financing has been secured. All in all, we have built a stable platform for the company’s ongoing development in 2013.”

About Orc
Orc is a leading provider of technology and services for the global financial industry. Since 1987, Orc delivers trading and market access solutions used by proprietary trading and market making firms, investment banks, hedge funds and brokerage houses worldwide.

Orc develops and provides the tools needed for running profitable trading or brokerage businesses in today’s competitive and ever-changing markets.

With market presence in all major global financial centers, Orc provides sales and support services from its offices across EMEA, the Americas and the Asia-Pacific regions.

Orc is owned by Cidron Delfi Intressenter AB, which is in turn owned by Nordic Capital Fund VII.

Contact Information
CEO Torben Munch, phone: +46 8 506 477 35
CFO Tomas Ljunglöf, phone: +46 8 506 477 24

The information in this interim report is subject to the disclosure requirements of Cidron Delfi Intressenter AB under the Swedish Securities Exchange and Clearing Operations Act and the Financial instruments Trading Act. The information was released for publication on February 14, 2013, 8:00 a.m. CET.

N.B. The English text is a translation of the Swedish text. In case of discrepancy between the Swedish and the English text the Swedish version shall prevail.

About Us

Orc is the global market leader in trading technology for listed derivatives. Building on our commitment to long term partnerships and technology innovation that delivers results, Orc serves the trading and electronic execution needs of clients worldwide. Leading trading firms, market makers, banks and brokers depend on Orc to provide robust solutions that deliver concrete value, ensuring that they achieve their business goals in the world's increasingly dynamic and competitive markets. With nearly 200 customer sites in more than 30 countries, access to over 150 trading venues and offices in each of the world's key financial centers, we offer true global capabilities. Combining our technology and financial industry expertise, including a solid understanding of regulatory issues, Orc also provides expert advice and services that help reduce complexity and cost, while enabling clients to stay focused on value creation in their core businesses. Orc is owned by Orc Group Holding AB which in turn is owned mainly by Nordic Capital Fund VII.