Opus Group Annual 2011 Report ENG

14
OPUS 2011
CLEAR
INDUSTRY FOCUS
Opus’ business is based on enabling operating in the environmental and safety testing
of vehicles in a rational and effective manner. The company operates throughout
the value chain, from development to production, sales of equipment for testing,
to being a service provider that conducts environmental and safety tests.
NORTH AMERICA
Vehicle inspection contracts & environmental control
The North American business operates in the distribution
of environmental testing equipment, as well as a service
provider, contracted to perform environmental checks on
vehicles or supply equipment, IT systems, training, service,
appointment scheduling, and marketing. The solutions vary
depending on whether there it is a centralized or decentralized
system (read on page 10 about Opus' market).
Systech International, headquartered in Utah, offers
turnkey systems and services for environmental and safety
testing. The company's strength lies in the multitude of
system solutions (innovative technologies and modern IT
solutions) and the ability to drive contracted vehicle inspection
programs in a cost effective manner. System solutions
consist of IT systems tailored for emission testing that
integrates management systems and databases. Holistic
solutions also include hardware in the form of advanced
environmental and safety testing systems. The business
which is contract bound, includes maintenance and management
of programs in environmental testing of vehicles
and is a business that is growing. Systech has vehicle
inspection contracts with government agencies in the U.S.
market, as well as operations in Bermuda and in Peru.
Good EBITDA margin for 2011 and the strategic acquisition
in January 2012
North America achieved an EBITDA margin of 26 percent for
2011, adjusted for the ESP-related acquisition costs. Systech
won a significant long-term agreement to run the decentralized
inspection program in the state of Wisconsin. The
agreement is for 5 years with two possible extensions of
three years each. From July 2012, this program is expected
to contribute to revenue and EBITDA, which means that the
program gives full effect on profitability only in 2013.
A strategic acquisition was made through acquiring
Environmental Systems Products (ESP) in January 2012, as a
step towards becoming the largest supplier in the decentralized
vehicle inspection market in the U.S. ESP (Environmental
Systems Products, Inc.) develops, manufactures,
sells and services test systems for environmental testing.
The company is located, with its own production facilities, in
Connecticut, USA and has approx.12 500 customers in eight
states, involved in emission testing. Subsidiaries are also
located in Canada and Mexico. ESP has a strong market
position in the U.S. in sales and service of environmental
testing equipment. Sales make up about 20% of ESP's sales
and the service portion is 80%.
In late 2010, the group's first vehicle inspection station
was opened in Ica, Peru, South America, , where Systech’s
skills, software and technologies were successfully combined
with Opus test equipment technology. A reference
that is believed will be of importance for other market opportunities
internationally.
35%
2011 2010
Net sales 80 510 96 187
EBITDA 18 793 26 833
EBITDA margin % 23,30% 27,90%
BUSINESS AREA NORTH AMERICA
SHARE OF TOTAL SALES
BUSINESS AREA NORTH AMERICARE-
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