Second quarter 2015 Sverre Hurum. CEO Erik Stub. CFO 27 August - PowerPoint PPT Presentation

Interim presentation Second quarter 2015 Sverre Hurum. CEO Erik Stubø. CFO 27 August 2015

Highlights in the second quarter Revenues and EBIT • Revenues and number of employees MNOK and number Operating revenues increased by – 350 14.3 percent to NOK 315.7 million 300 (y-o-y) 250 EBIT up by 46.2 percent to NOK – 200 34.6 million (y-o-y) 150 100 1018 employees • 50 An increase of 18 in the quarter – 0 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 An increase of 73 in the past 12 – 1200 months 1000 Important long term agreements • 800 across regions 600 400 200 0 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 2 August 27, 2015 Interim presentation 2nd quarter 2015

Operational Review

Digitisation of train operation in Norway FIDO makes all train-related • communication digital and mobile Reduces delays and improves • security Saves NOK 20 million per year • Developed by Bouvet •

Important long term agreements across regions Statoil Oil Trade Solutions • – 10 years – Stavanger, Trondheim Altinn portal • – 8 years – Stavanger, Bergen Helse Vest IKT • – 4 years – Bergen, Haugesund, Stavanger 5 August 27, 2015 Interim presentation 2nd quarter 2015

Shift in sectors Changes in revenues per sector since Q2’14 Reduced revenues from oil and • MNOK gas 45 Increased revenues from all • 40 other sectors 35 Public admin 41,4 % of revenues from • customers publicly owned, up 30 Health from 37,1 % in Q2’14 25 Bank & finance Industry 20 Power supply 15 Retail 10 Oil & gas Transportation 5 Service industry IT, media, telekom - Reduced revenues Increased revenues 6 August 27, 2015 Interim presentation 2nd quarter 2015

Customer and project mix Project mix • Variably priced contracts share of revenues Percentage Variable contracts account for 96.1 – 100% percent of total revenues 90% 80% Client portfolio • 70% The 10 largest customers represent – 60% 39.3 percent of total revenues – 50% Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 down from 43.8 percent in Q2’14 10 largest customers share of revenues The 20 largest customers represent – Percentage 52.5 percent of total revenues – 100% down from 57.3 percent in Q2’14 75% The largest customer represents – 50% less than 15 percent 25% 0% Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 7 August 27, 2015 Interim presentation 2nd quarter 2015

Client development Existing clients* • Revenues customer split MNOK Revenues from existing clients – Existing customers* New customers (LTM)** increased 3.5% from Q2’14 350 – Accounted for 90.5 percent of 300 revenues in Q2’15 250 New customers** • Customer won over the past year – 200 generated revenues of NOK 29.9 million in Q2’15 150 100 50 * Existing customers defined as customers that were invoiced in the corresponding quarter last year - ** New customers defined as customers won since end of corresponding quarter last year Q2'14 Q2'15 8 August 27, 2015 Interim presentation 2nd quarter 2015

Regional organisation 90 63 14 Trondheim 396 Bergen Sandvika Ørebro Stockholm Oslo Haugesund 334 Sandefjord Stavanger Skien Kristiansand Arendal 48 Group management and staff: 18 Malmø 55 9 August 27, 2015 Interim presentation 2nd quarter 2015

Enthusiastic and competent employees 1 018 employees at the end of the • Number of employees end of quarter second quarter 1200 18 new employees in Q2’15 – 1000 73 more employees in the past 12 – 800 months 600 400 – Average number of employees in 200 the quarter up 6.8 percent from 0 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 Q2’14 Annual growth in number of employees Percentage 25% 20% 15% 10% 5% 0% Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 10 August 27, 2015 Interim presentation 2nd quarter 2015

Financial Review

Key figures Three months ending Twelve months ending MNOK 30.06.2015 30.06.2014 30.06.2015 30.06.2014 Change Change 315.7 276.2 14.3 % 1 198.2 1 124.5 6.6 % Operating revenue 34.6 23.6 46.2 % 95.1 95.0 0.1 % Operating profit (EBIT) EBIT margin 11.0 % 8.6 % 7.9 % 8.4 % Ordinary profit before tax 35.4 24.2 46.5 % 97.5 97.2 0.4 % 25.4 17.5 45.1 % 70.0 69.2 1.2 % Profit for the period 2.41 1.65 46.3 % 6.77 6.72 0.8 % EPS (fully diluted) Net cash flow operations 28.6 18.0 58.8 % 76.5 118.1 -35.2 % Equity ratio 35.8 % 34.5 % 35.8 % 34.5 % Cash and cash equivalents 89.7 98.0 -8.4 % 89.7 98.0 -8.4 % Number of employees (end of period) 1 018 945 7.7 % 1 018 945 7.7 % Number of employees (average) 1 010 946 6.8 % 991 930 6.6 % 12 August 27, 2015 Interim presentation 2nd quarter 2015

Top line growth Revenues increased by 14.3 • Revenue split (quarterly figures) MNOK percent y-o-y 350 Own consultants Revenues from own consultants – 300 Sub-contracted consultants increased by 15.0 percent to NOK 250 Other 200 268.6 million 150 Revenues from sub-contracted 100 – 50 consultants increased by 2.8 0 percent to NOK 30.4 million Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 Other revenues increased by 28.5 – Revenue split (12 months rolling average) percent to NOK 16.7 million MNOK 1200 Own consultants Billing rate decreased 0.6 • Sub-contracted consultants 1000 percentage points from Q2’14 Other 800 600 Prices for group hourly services • 400 increased 2.6 percent from Q2’14 200 0 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 13 August 27, 2015 Interim presentation 2nd quarter 2015

Increased earnings Operating profit increased y-o-y in • EBIT and EBIT margin MNOK and Percent Q2’15 40 EBIT EBIT margin 15% EBIT margin of 11.0 percent – 30 compared to 8.6 percent in Q2’14 10% 20 Operating expenses increased by • 5% 10 11.3 percent compared to Q2’14 0 0% Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 Other operating expenses • increased 0.2 percent EBIT and EBIT margin (12 months rolling) MNOK and Percent 59 workdays in Q2’15 – equivalent • 120 EBIT EBIT margin 12% to Q2’14 100 10% 80 8% 60 6% 40 4% 20 2% - 0% Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 14 August 27, 2015 Interim presentation 2nd quarter 2015

Cash flow Cash flow from operations • Cash flow from operations (per quarter) MNOK Positive NOK 28.6 million in Q2’15, – 120 100 up from NOK positive 18.0 million 80 in Q2’14 60 40 Rolling 12 months • 20 0 -20 – Operational cash flow over the last -40 12 months was NOK 76.5 million Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 Cash flow from operations (LTM) Cash flow from investing activities • MNOK 140 – Negative NOK 3.4 million 120 compared to negative NOK 3.3 100 million in Q2’14 80 60 40 20 0 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 15 August 27, 2015 Interim presentation 2nd quarter 2015

Outlook

Outlook • Short-term uncertainty Long decision-making processes – Cost reduction – Technology, digital • communication and business development more interwoven Digital solutions expected to • persist in every sector 17 August 27, 2015 Interim presentation 2nd quarter 2015

Shareholders as at 26.08.2015 Investor Number of shares % of total VARNER KAPITAL AS 1 070 000 10,44 STENSHAGEN INVEST AS 1 024 992 10,00 MP PENSJON PK 669 904 6,54 HURUM SVERRE FINN 506 584 4,94 KLP AKSJE NORGE VPF 405 313 3,95 PROTECTOR FORSIKRING ASA 400 000 3,90 VEVLEN GÅRD AS 400 000 3,90 SIX SIS AG 379 216 3,70 KOMMUNAL LANDSPENSJOSONSKASSE 282 569 2,76 J.P. MORGAN CHASE BANK N.A. LONDON 256 945 2,51 STUBØ ERIK 236 084 2,30 STOREBRAND NORGE I 227 948 2,22 VERDIPAPIRFONDET EIKA NORGE 213 952 2,09 DYVI INVEST AS 200 000 1,95 TELENOR PENSJONSKASSE 186 800 1,82 STOREBRAND VEKST 163 018 1,59 VERDIPAPIRFONDET STOREBRAND OPTIMA 133 762 1,30 VOLLE ANDERS 125 908 1,23 AAT INVEST AS 120 300 1,17 VERDIPAPIRFONDET DNB SMB 97 552 0,95 Number of shares held by the 20 largest shareholders 7 100 847 69,26 18 August 27, 2015 Interim presentation 2nd quarter 2015 18