Interim presentation Third quarter 2018 Sverre Hurum, CEO Erik - PowerPoint PPT Presentation

Interim presentation Third quarter 2018 Sverre Hurum, CEO Erik Stubø, CFO 14 November 2018

Highlights in the quarter Revenue and number of employees MNOK and number o Revenue and EBIT 500 450 • Operating revenues increased by 14.9 percent 400 350 to NOK 395.4 million (y‐o‐y) 300 250 • EBIT increased by 17.9 percent to NOK 20.1 200 150 million (y‐o‐y) 100 50 o 1 342 employees 0 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 • Up 38 from Q2’18 1600 1400 • An increase of 131 in the past 12 months 1200 1000 o Still strong market 800 600 400 200 0 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 2

Operational Review 3

Public and private sector Public sector Private sector 51.4 % 50,3 % in Q3’17 49,7 % in Q3’17 48.6 % 4

Business sectors Q3 2018 Bank & finance Other Retail Power supply 2.4 % 4.2 % 5.9 % Transportation 10.0 % 6.8 % Health 2.3 % Service industry 5.3 % Industry 4.9 % Info and communication 4.9 % 25.8 % Oil & gas 27.5 % Public admin 5

Forsvaret Sectors with high increase in revenue o Public admin • Increased by 17.2 percent (y‐o‐y) • Represents 27.5 percent of total revenues in Q3’18 o Oil & gas • Increased by 35.5 percent (y‐o‐y) • Represents 25.8 percent of total revenues in Q3’18 o Power supply • Increased by 28.0 percent (y‐o‐y) • Represents 10.0 percent of total revenues in Q3’18 o Bank & finance • Increased by 17.5 percent (y‐o‐y) • Represents 4.2 percent of total revenues in Q3’18 6

Digital solutions to support offshore operations o Equinor´s Integrated Operations Centre (IOC) has trusted Bouvet as a partner o IOC supports offshore operations remote and the objective is to: • Reduce emissions • Increase the efficiency, safety and potential of production o Duration at least one year, with significant volume and value Photo: Equinor 7

New digital solutions for the Swedish government o Bouvet is one of six suppliers to develop the future digital solutions for public‐ service within health, social care and education o Duration 4 years 8

Hydro Traffic Management System (HTMS) o Delivered a pilot study for a traffic system with real‐time positioning to optimise use of manually and automated vehicles Photo: Hydro 9 Photo: Hydro

Customer and project mix Variably priced contracts share of revenues Percentage o Project mix 100% • Variable contracts account for 97.5 percent of 90% total revenues 80% 70% o Customer portfolio 60% 50% • The 10 largest customers represent 38.8 percent Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 of total revenues – up from 36.4 percent in 10 largest customers share of revenues Q3’17 Percentage • The 20 largest customers represent 51.6 100% percent of total revenues – up from 49.4 75% percent in Q3’17 50% 25% 0% Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 10

Customer development Revenue customer split MNOK o Existing customers* Existing customers* New customers (LTM)** • Accounted for 94.2 percent of revenues in Q3’18 450 400 o New customers** 350 • Customers won over the past year generated 300 revenues of NOK 23.0 million in Q3’18 250 200 150 100 50 * Existing customers defined as customers that were invoiced in the corresponding quarter last year ‐ ** New customers defined as customers won since end of Q3'17 Q3'18 corresponding quarter last year 11

Regional organisation 117 Trondheim Bouvet Nord ansatte 526 Bouvet Øst ansatte 29 Sesam ansatte 85 Bouvet Bergen Bergen Borlänge ansatte Oslo Sandvika Ørebro Stockholm Haugesund 426 Bouvet Rogaland Sandefjord Stavanger ansatte Skien Arendal Kristiansand 72 Bouvet Sverige ansatte 23 64 Bouvet Sør Konsernstab ansatte ansatte

Enthusiastic and competent employees o 1 342 employees at the end of the quarter Number of employees end of quarter • Up 38 from Q2’18 1500 • 131 more employees in the past 12 months 1000 • Average number of employees in the quarter up 500 11.3 percent from Q3’17 0 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 Annual growth in number of employees Percentage 20% 15% 10% 5% 0% Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 13

14

Financial Review 15

Key figures Three months ending Twelve months ending MNOK 30.09.2018 30.09.2017 30.09.2018 30.09.2017 Change Change Operating revenue 395.4 344.2 14.9 % 1 769.7 1 531.2 15.6 % Operating profit (EBIT) 20.1 17.1 17.9 % 175.5 127.9 37.2 % EBIT margin 5.1 % 5.0 % 9.9 % 8.4 % Ordinary profit before tax 20.2 17.0 18.8 % 175.1 129.3 35.4 % Profit for the period 15.4 12.5 23.0 % 136.6 98.7 38.5 % EPS (fully diluted) 1.51 1.22 23.7 % 13.32 9.64 38.2 % Net cash flow operations ‐14.1 ‐2.5 N/A 161.6 108.9 48.4 % Equity ratio 35.0 % 34.2 % 35.0 % 34.2 % Cash and cash equivalents 63.4 41.6 52.5 % 63.4 41.6 52.5 % Number of employees (end of period) 1 342 1 211 10.8 % 1 342 1 211 10.8 % Number of employees (average) 1 328 1 193 11.3 % 1 271 1 139 11.6 % 16

Revenue Revenue split (quarterly figures) MNOK o Own consultants Revenues increased by 14.9 percent y‐o‐y 500 Sub‐contracted consultants 400 Other • Revenues from own consultants increased by 16.2 300 percent to NOK 331.3 million 200 • Revenues from sub‐contracted consultants increased by 100 9.1 percent to NOK 50.8 million 0 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 • Other revenues increased by 6.3 percent to NOK 13.2 million Revenue split (12 months rolling average) MNOK Own consultants Sub‐contracted consultants 2000 Other 1500 1000 500 0 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 17

Revenues from own consultants Revenue per employee (quarterly figures) o Increased 16.2 percent y‐o‐y TNOK 350 • Positive impact from increase in billing ratio by 1.5 300 percentage points 250 200 • Positive impact from 11.3 percent increase in average 150 100 number of employees 50 • 0 Positive impact from 3.6 percent increase in prices for Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 group hourly services Revenue per employee (LTM) • 65 workdays in Q3’18 – equal to Q3’17 TNOK 1150 1100 1050 1000 950 900 850 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 18

Analysis of change in revenues y‐o‐y Revenue MNOK 40 33.6 35 30 25 20 15 10.6 10 6.4 5.7 5.0 5 0 ‐5 ‐10 ‐10.2 ‐15 No. of employees Hourly rate Sick leave, vacation, Billing ratio Sub‐contractors & other Progress in projects overtime etc revenue 19

Change in revenues – effect on EBIT Revenue MNOK Change in Revenue Effect on EBIT 40 33.6 35 30 25 20 15 10.6 10 8.2 7.9 6.4 5.7 5.0 4.2 5 3.4 0.4 0 ‐5 ‐7.6 ‐10 ‐10.2 ‐15 No. of employees Hourly rate Sick leave, vacation, Billing ratio Sub‐contractors & other Progress in projects overtime etc revenue 20

Earnings EBIT and EBIT margin MNOK and Percent o Operating profit (EBIT) up by 17.9 percent to NOK 60 EBIT EBIT margin 15.0% 20.1 million 50 o 40 10.0% EBIT margin of 5.1 percent compared to 5.0 percent 30 in Q3’17 20 5.0% 10 o Operating expenses increased by 14.7 percent 0 0.0% compared to Q3’17 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 o General growth in pay rate 1.6 percent y‐o‐y EBIT and EBIT margin (LTM) MNOK and Percent o Other operating expenses increased 24.6 percent 200 12% EBIT EBIT margin 180 10% 160 140 8% 120 100 6% 80 4% 60 40 2% 20 0 0% Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 21

Cash flow Cash flow from operations (per quarter) o Cash flow from operations MNOK 200 • Negative NOK 14.1 million in Q3’18 compared to negative 150 NOK 2.5 million in Q3’17 100 o Last 12 months 50 • Operational cash flow over the last 12 months was NOK 0 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 161.6 million ‐50 o Cash flow from investing activities Cash flow from operations (LTM) MNOK • Negative NOK 10.1 million compared to negative NOK 7.1 200 million in Q3’17 150 100 50 0 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 22

Outlook 23

Outlook o High demand o Decreased demand for large projects o Increased demand for cross‐functional teams o Increased demand for broad range of services o Increased demand for platform, IoT, security and cloud competence o Clients will increase their digital skills o Too low capacity in the IT sector 24

Shareholders as of 14.11.2018 Shareholders Number of shares % of total VARNER KAPITAL AS 1 070 000 10,44 % VPF NORDEA AVKASTNING 985 331 9,61 % STENSHAGEN INVEST AS 736 699 7,19 % VIRTUS KAR INTERNATIONAL 517 940 5,05 % HURUM SVERRE FINN 508 366 4,96 % MP PENSJON KP 504 004 4,92 % VEVLEN GÅRD AS 453 502 4,42 % PROTECTOR FORSIKRING ASA 298 610 2,91 % STUBØ ERIK 237 866 2,32 % UBS SWITZERLAND AG 204 030 1,99 % SIX SIS AG 200 000 1,95 % VPF NORDEA KAPITAL 166 690 1,63 % STOREBRAND NORGE I VERDIPAPIRFOND 162 929 1,59 % TELENOR PENSJONSKASSE 154 141 1,50 % VOLLE ANDERS 115 738 1,13 % STATE STREET BANK AND TRUST COMP 100 972 0,99 % DYVI INVEST AS 100 000 0,98 % BOUVET ASA 97 053 0,95 % RADIG NILS-HÅKAN 75 043 0,73 % STOREBRAND VEKST VERDIPAPIRFOND 71 763 0,70 % Number of shares held by the 20 largest shareholders 6 760 677 65,96 % 25