IBX announces strong results and a strengthened position in Europe

11 March – IBX, the pioneer in the field of e-purchasing services and solutions, has today announced its annual results including profitability increase of 44 percent during 2008 (EBITDA increased from MSEK 30,5 to MSEK 44). In spite of the global economic downturn IBX has continued to consolidate its position in existing markets, such as Sweden, Denmark, Germany and the UK and has established new offices in Italy and the Benelux countries. In 2009, IBX expects continued growth, delivering efficient purchasing as an offensive tool to help customers to beat the recession.

“During 2008 we consolidated our position in key markets in Europe, continuing to grow and improving our profitability significantly. As a foundation for further expansion we have established offices in Italy and Benelux, refreshed the management structure and developed new products and services. The current economic situation is challenging, but also opens up new opportunities to find organisational efficiencies. I feel confident that 2009 will be a successful year for IBX,” says Leif Bohlin, CEO of IBX.

Key figures 2008:

Earnings before depreciation (EBITDA) increased by 44 percent to MSEK 44 (MSEK 30,5)*
IBX improved their earnings before tax to MSEK 7,2 (MSEK 2,5)
IBX increased its net revenue to MSEK 318 (MSEK 311)
IBX operational cash flow remains on a high level at MSEK 40,0 (MSEK 53,8)
IBX has operations in 9 countries in Europe and has operational purchasing solutions for clients in 90 countries globally
At the end of 2008, IBX had 127 (98) buying companies and 3500 (2,125) affiliated catalogue supplier companies
Procurement volume in 2008 was 2,0 million POs with an order value of 11,9 BEUR
Total number of transactions through IBX’s systems in 2008 was 7 million

Throughout 2008, IBX has re-negotiated and extended contracts with existing customers including SEB, Lego and Deutsche Post. Furthermore, the company has grown by winning contracts with new clients in existing markets, such as ALK-Abelló and Allianz. With these long-term commitments from clients, IBX looks forward to continued expansion into new markets.

In the current economic downturn; identifying savings opportunities comes top of the management agenda. Purchasing typically equals 40 to 60 percent of a company’s turnover and has an important part to play in realising savings opportunities. IBX’s knowledge and expertise in purchasing and sourcing strategies is therefore even more important in times like these.

“A recessionary environment presents many opportunities from a purchasing perspective. The first step is to get a better understanding of your current cost base before identifying areas where efficiencies might be quickly realised,” said Mark Masterson, IBX UK Country Manager. “As we approach the 2nd anniversary of IBX UK, customers and prospects are looking for sourcing projects that deliver fast ROI, or, activities designed to make existing systems work harder. An efficient purchasing structure helps uncover savings opportunities, sets appropriate strategies for purchasing and ultimately delivers improvements to the bottom-line,” continues Masterson.

* 2007 figures in brackets

For more information, please contact:
Leif Bohlin, CEO IBX, Phone: +46 8 5030 4321, e-mail: leif.bohlin {at} ibxgroup(.)com
Torbjörn Enström, CFO IBX, Phone: +46 8 5030 4223, e-mail: torbjorn.enstrom {at} ibxgroup(.)com
Mark Masterson, IBX UK Country Manager, Phone: +44 (0) 1865 339 350, e-mail: mark.masterson {at} ibx.co(.)uk

About IBX
As a pioneer in the field of e-purchasing, IBX delivers measurable impact to client’s bottom lines through its comprehensive Efficient Purchasing framework. IBX serves blue chip corporations globally through proven purchasing expertise, with a high value supplier network and best of breed e-sourcing and e-procurement technology. The company enables its customers to generate sustainable cost savings through better spend visibility, increased spend under management and contract compliance. IBX offices are located in Stockholm (HQ), Antwerp, Copenhagen, Frankfurt, Helsinki, Milan, Oxford, Oslo and Paris. www.ibxgroup.com

Milestones
2000 – IBX is established in October through an initiative from Ericsson, SEB and b-business partners. The initial period was used to set up an application environment and to implement the two first customers: Ericsson and SEB. As a part of this, IBX signed agreements with SAP and Commerce One in November 2000.

2001 – IBX states its ambition of becoming a Nordic business, with Denmark being the second country to join the system through the arrival of Novo Nordisk as part owner and customer. On 5 December, IBX has won the competition for the Norwegian State e-procurement initiative e-handel.no. IBX has thus established operations in Norway.

2002 – The year starts with IBX stating that the company is now a member of an international network. The final stage of the pan-Nordic establishment is the addition of Finland. IBX is now present in Sweden, Denmark, Norway and Finland.

2003 – At the end of 2002, IBX had 23 (6) purchasing companies and 250 (135) supplier companies linked to its system. Earnings rose by 30 percent in 2002 and are expected to increase by a further 50 per cent in 2003. In 2003, IBX is expected to reach a break-even EBITDA level for the whole year – the company’s third year of operation.

2004 – IBX presents figures for 2003 and announces a new stock issue of MSEK 45, which is intended to make IBX the leading company in Europe. Skanska selects IBX as its supplier. The contract represents a major breakthrough for IBX within the building and construction centre and covers Skanska’s critical flow of construction materials. IBX strengthen their position in the entire Nordic signing deals with, among others, Saab in Sweden, Finnair in Finland, Helse Øst in Norway and Lundbeck in Denmark. IBX takes an important step on the European market, when the company signs a five-year agreement with Deutsche Post World Net. The agreement, which is global, comprises 5 000 suppliers in more than 20 countries.

2005 –IBX presents the result of 2004, the operating result before depreciation and amortization was a profit of SEK 9 million. During 2004 IBX dealt with 1 million purchasing orders with a total purchasing volume of SEK 27 billion. Volvo increases its collaboration with IBX to include global purchasing solutions. In March, IBX acquires the leading German e-commerce company trimondo Gmbh. The acquisition establishes IBX in Europe. The LEGO Group and IBX signs a three-year agreement including e-commerce solutions and consulting services. The European paper industries launch the joint eProcurement initiative PPConnect and they have chosen IBX as a supplier of eProcurement solutions and supplier network. In September IBX launched a purchasing industry magazine, Efficient Purchasing Magazine, for sourcing and procurement professionals in Europe. The magazine aims to be an inspiring forum for opinions, best practice, and innovative ideas in the field of purchasing.

2006 – IBX presents the result of 2005 and strengthens its position as the leading European Purchasing Solutions provider with net revenues for the full year 2005 increased by 55 percent to SEK 187 million (120), while operating income before depreciation was up to SEK 15 million (9). Tuve Johannesson elected New Chairman of IBX’s Board of Directors. Tuve Johannesson is the former head of Volvo. In August IBX acquires German Portum AG, a leading supplier of web-based solutions for strategic purchasing (e-sourcing). IBX enters into a ten-year cooperation agreement with SAP, based on their purchasing solution, mySAP SRM. IBX signs new contracts with Hydro Aluminium, Avinor, three public health authorities in Norway, Cloetta Fazer, NCC and expands the collaboration with Lufthansa.

2007 – IBX presents the result of 2006 with a net revenue 35 percent growth. IBX increased results before depreciations (EBITDA) by 53 percent to MSEK 23 (MSEK 15), and improved its result before tax to MSEK 2.0 (MSEK 0.1). During 2007 IBX extends the partnership with Thomas Cook to rollout IBX eProcurement throughout their entire enterprise and have signed new agreement with Fazer Group and GEA for strategic souring. IBX also have signed agreement with PwC to manage the roll-out and operation of IBX complete web-based on demand procure-to-pay solution. SAS Group and IBX initiate strategic partnership, the agreement, which comprises sourcing and procurement as well as support with its organizational re-design of the groups purchasing functions, is a central aspect of SAS new action program. Following two major contracts with British clients, IBX now announces the opening of a new office in Oxford, United Kingdom with the intention of building a strong presence in the British market.

2008 – IBX appoints Leif Bohlin as new CEO in the beginning of the year; he has been with IBX since 2000. Before joining IBX, Leif Bohlin worked as a management consultant with Booz-Allen Hamilton and A T Kearney. Bohlin has also purchasing experience from the automotive sector. In May, IBX present the result of 2007 – 24 percent growth to MSEK 311 (MSEK 251) and EBITDA improved with 33 percent to MSEK 30,5 (MSEK 23). During the year IBX extended contracts with existing customers such as SEB, Lego and Deutsche Post and won new contracts with ALK-Abelló and Allianz. IBX further strengthened its position on the European market with new offices in Italy and the Benelux countries. In May IBX released “Purchasing Transformation”, a book full of insight and hands-on experience providing new perspectives on how a purchasing function must adapt to a changing world. At the same time IBX started the Purchasing Transformation blog on its homepage providing readers with information for those who want to be up-to-date within the field of purchasing. In the last quarter of the year the IBX Search Engine was launched. With the application users are able to find and purchase necessary goods and services easier and faster.

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