Interim presentation First quarter 2020 19. May 2020 Sverre Hurum, - PowerPoint PPT Presentation

Interim presentation First quarter 2020 19. May 2020 Sverre Hurum, CEO Erik Stubø, CFO

Our services Multi-channel strategy Innovation Enterprise architecture DevOps Business intelligence IT architecture Product strategy Test management Security Project management Agile Information management Digital strategy Service design Lean Data science GDPR Big Data Change mangement Consulting Digital marketing Courses Digital customer experience Tailored solutions Design Web solutions Data Analysis System development Open courses Brand-building Business intelligence Hybrid Cloud Internal company courses Content Collaboration Communication Technology SAP Cloud Services Integration Mobile solutions Application management Infrastructure SEO User testing IoT AI and machine learning Platforms Social media 2

Bytte bilde Remote work 3

Breakfast seminars and courses 4

BouvetOne 5

Highlights in the quarter Revenue and number of employees MNOK and number o Revenue and EBIT 700 650 • Operating revenues increased by 13.6 percent 600 550 500 to NOK 641.2 million (y-o-y) 450 400 350 • EBIT increased by 20.0 percent to NOK 82.6 300 250 200 million (y-o-y) 150 100 50 o 1 575 employees 0 Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 • Up 18 from Q4’19 1800 1600 • An increase of 170 in the past 12 months 1400 1200 1000 o Dividend NOK 8.25 per share 800 600 400 200 0 Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 6

Bouvet’s vision We lead the way and build tomorrow’s society

Bouvet’s ambition We will be the most credible consultancy with the most satisfied employees and clients

Long-term goals Client-oriented and Best workplace Successful business long-term relations

Operational Review 10

Public and private sector Public sector Private sector 50,9 % 50,2 % in Q1’19 49,8 % in Q1’19 49,1 % 11

Business sectors Q1 2020 Bank & finance Other Retail 1,9 % 3,4 % Power supply 5,0 % Transportation 5,7 % 12,9 % Service industry Health 4,4 % 2,1 % Industry 4,5 % Info and communication 5,0 % 27,9 % Oil & gas Public admin 27,2 % 12

The four largest sectors o Oil & gas • Increased by 22.5 percent (y-o-y) Forsvaret • Represents 27.9 percent of total revenues in Q1’20 o Public admin • Increased by 12.8 percent (y-o-y) • Represents 27.2 percent of total revenues in Q1’20 o Power supply • Increased by 46.1 percent (y-o-y) • Represents 12.9 percent of total revenues in Q1’20 o Transportation • Decreased by 22.4 percent (y-o-y) • Represents 5.7 percent of total revenues in Q1’20 13

Bouvet’s contribution to the Covid -19 situation o City of Bergen • New reports for the crisis management team o Norwegian Tax Administration • Application form for business compensation scheme o Norwegian Institute of Public Health • Safety assessment of the “Stop Infection” application • Self-reporting system to monitor the pandemic o Central Norway Regional Health Authority’s IT o Public Health Agency of Sweden department (HEMIT) • “ SmiNet ” infection tracker • Pandemic register o Bergen Light Rail (Bybanen) o City of Oslo • Reports which monitor the number of travellers on the • Residents app for infection follow-up Bergen Light Rail system to avoid crowded carriages • Patient journeys o Laerdal • Recruitment base for volunteer health personnel • Solution for health workers to train on patients infected o Bouvet´s lab with Covid-19 • Participated in national voluntary work making face shields for infection control 14

Unique digital collaboration o AltInn Digital supports user-friendly communication and collaboration between the public and private sectors and with individuals • Supports development of digital forms and Illustration: Sandra Blikås, Byhands mails • Offers APIs which make it possible to develop and deliver new digital services with unique user experiences o Bouvet’s deliveries • User experience • Communication • System development 15

Enhanced information flow o The City of Oslo is building a new emergency ward. Its IT challenges are: • Emergency care functions need better and more holistic IT support • The flow of information is often disrupted • Information is locked down in silo systems o Results • Information flow throughout the patient journey • A platform-based approach to enhance collaboration between health services • Flexible IT architecture to facilitate rapid change o Bouvet´s deliveries • Information architecture • Enterprise architecture 16

Customer and project mix Variably priced contracts share of revenues Percentage o Project mix 100% • Variable contracts account for 98.8 percent of 98% total revenues 96% 94% o Customer portfolio 92% 90% • The 10 largest customers represent 42.8 percent Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 of total revenues – up from 39.0 percent in 10 largest customers share of revenues Q1’19 Percentage • The 20 largest customers represent 53.6 100% percent of total revenues – up from 50.5 75% percent in Q1’19 50% 25% 0% Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 17

Customer development Revenue customer split MNOK o Existing customers* Existing customers* New customers (LTM)** • Accounted for 95.7 percent of revenues in Q1’20 700 o New customers** 600 • Customers won over the past year generated 500 revenues of NOK 27.4 million in Q1’20 400 300 200 100 * Existing customers defined as customers that were invoiced in the corresponding quarter last year 0 ** New customers defined as customers won since end of Q1'19 Q1'20 corresponding quarter last year 18

Regional organisation 141 Trondheim Bouvet Nord ansatte 560 Bouvet Øst ansatte 46 Sesam ansatte 106 Bouvet Bergen Bergen Borlänge ansatte Oslo Sandvika Ørebro Stockholm Haugesund 532 Bouvet Rogaland Sandefjord Stavanger ansatte Skien Arendal Kristiansand 77 Bouvet Sverige ansatte 27 86 Bouvet Sør Konsernstab ansatte ansatte 19

Enthusiastic and competent employees o 1 575 employees at the end of the quarter Number of employees end of quarter • Up 18 from Q4’19 2000 • 170 more employees in the past 12 months 1500 • Average number of employees in the quarter up 1000 12.3 percent from Q1’19 500 0 Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 Annual growth in number of employees 250 200 150 100 50 0 Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 20

Financial Review 21

Key figures Three months ending Twelve months ending MNOK 31.03.2020 31.03.2019 Change 31.03.2020 31.03.2019 Change Operating revenue 641.2 564.3 13.6 % 2 209.0 1 948.8 13.4 % Operating profit (EBIT) 82.6 68.8 20.0 % 245.8 209.9 17.1 % EBIT margin 12.9 % 12.2 % 11.1 % 10.8 % Ordinary profit before tax 83.2 68.5 21.4 % 242.9 210.4 15.4 % Profit for the period 64.7 53.4 21.0 % 191.4 165.3 15.8 % EPS (fully diluted) 6.24 5.16 20.8 % 18.51 16.07 15.2 % Net cash flow operations 47.1 4.3 N/A 319.9 237.8 34.5 % Equity ratio 31.1 % 29.2 % 31.1 % 29.2 % Liquid assets 372.0 267.1 39.3 % 372.0 267.1 39.3 % Number of employees (end of period) 1 575 1 405 12.1 % 1 575 1 405 12.1 % Number of employees (average) 1 569 1 398 12.3 % 1 517 1 344 12.9 % 22

Revenue Revenue split (quarterly figures) MNOK Own consultants o Revenues increased by 13.6 percent y-o-y 700 Sub-contracted consultants 600 Other • 500 Revenues from own consultants increased by 16 percent 400 to NOK 544.6 million 300 200 • Revenues from sub-contracted consultants increased by 100 6.8 percent to NOK 78.3 million 0 Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 • Other revenues decreased by 14.6 percent to NOK 18.3 million Revenue split (12 months rolling average) MNOK Own consultants Sub-contracted consultants 2500 Other 2000 1500 1000 500 0 Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 23

Revenues from own consultants Revenue per employee (quarterly figures) o Increased 16 percent y-o-y TNOK 400 • Positive impact from 12.3 percent increase in average 300 number of employees 200 • Positive impact from 3.8 percent increase in prices for group hourly services 100 • 0 Negative impact from decrease in billing ratio by 1 Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 percentage points Revenue per employee (LTM) • 64 workdays in Q1’20 – one more than Q1’19 TNOK 1200 1150 1100 1050 1000 950 900 Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 24

Analysis of change in revenues y-o-y Revenue MNOK 70 57,7 60 50 40 30 21,9 20 7,5 10 5 0 -3,1 -5,1 -10 -7,0 -20 No. of employees Hourly rate Number of workdays Sub-contractors Other revenue Vacation, leave etc. Billing ratio 25

Earnings EBIT and EBIT margin MNOK and Percent o Operating profit (EBIT) increased by 20 percent to 100 EBIT EBIT margin 14% NOK 82.6 million 12% 80 10% o EBIT margin of 12.9 percent compared to 12.2 60 8% percent in Q1’19 6% 40 4% 20 o 2% Operating expenses increased by 12.7 percent y-o-y 0 0% Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 o General growth in pay rate 2.6 percent y-o-y EBIT and EBIT margin (LTM) MNOK and Percent 260 EBIT EBIT margin 12% 240 220 10% 200 180 8% 160 140 6% 120 100 4% 80 60 2% 40 20 0 0% Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 26