Bouvet Asa · OSL:BOUV

Bouvet Asa — Q2 2019 Earnings Presentation

28 slides from Bouvet Asa's earnings presentation, Aug 22, 2019

  1. Slide 1: Interim presentation Second quarter 2019

    Interim presentation Second quarter 2019 Sverre Hurum, CEO Erik Stubø, CFO 22 August 2019

  2. Slide 2: Highlights in the quarter

    Highlights in the quarter Revenue and number of employees MNOK and number o Revenue and EBIT 600 550 • Operating revenues increased by 14.3 percent 500 450 to NOK 518.4 million (y-o-y) 400 350 300 • EBIT increased by 6.3 percent to NOK 59.3 250 200 million (y-o-y) 150 100 50 o 1 455 employees 0 Q2'1

  3. Slide 3: Operational Review

    Operational Review 3

  4. Slide 4: Our services

    Our services Enterprise architecture Multi-channel strategy Innovation Business intelligence IT architecture Product strategy DevOps Test management Security Project management Agile Information management Digital strategy Service design Lean Data science GDPR Big Data Change mangement Consulting Di

  5. Slide 5: Public and private sector

    Public and private sector Public sector Private sector 48,8 % 49,5 % in Q2’18 50,5 % in Q2’18 51,2 % 5

  6. Slide 6: Business sectors Q2 2019

    Business sectors Q2 2019 Other Bank & finance Retail 2,3 % 4,1 % Power supply 5,7 % Transportation 9,4 % 7,5 % Health 2,4 % Service industry Industry 5,1 % 4,8 % 3,7 % Info and communication Oil & gas 27,7 % 27,3 % Public admin 6

  7. Slide 7: Sectors with high increase in revenue

    Sectors with high increase in revenue o Oil & gas Forsvaret • Increased by 25.4 percent (y-o-y) • Represents 27.7 percent of total revenues in Q2’19 o Public admin • Increased by 18.1 percent (y-o-y) • Represents 27.3 percent of total revenues in Q2’19 o Industry • Increased by 37.2 percent (y-o-y)

  8. Slide 8: New information and arrival center at Oslo Airport

    New information and arrival center at Oslo Airport o Developed in partnership with several cross-functional organizations o The initial delivery is foundation for further enhancements and development, based on knowledge and data o Bouvet´s deliveries: • Software architecture • Multi lingual self ser

  9. Slide 9: Statnett has signed an agreement with Bouvet

    Statnett has signed an agreement with Bouvet o Statnett has signed an agreement with Bouvet on the development and governance of IT-solutions o The duration of the agreement is up to 6 years Foto: Statnett.no o Estimated value between 1200 and 1500 million NOK Foto: Statnett.no 9

  10. Slide 10: Signed new agreement with Swedish Medical Products Agency

    Signed new agreement with Swedish Medical Products Agency o Swedish Medical Products Agency has trusted Bouvet and Sesam to develop management system for side effects and signals for human and veterinary medicine o The project has a value of approximately 21 MSEK and application management of 4 year

  11. Slide 11: Some of Bouvet´s consulting services

    Some of Bouvet´s consulting services o Strategic level o Operational level • Digital leadership, roadmap and • Enterprise, information and strategy functional architecture • Innovation services • Program, project, product and • Organizational change change management • Service design • Agile Coachin

  12. Slide 12: Customer and project mix

    Customer and project mix Variably priced contracts share of revenues Percentage o Project mix 100% • Variable contracts account for 98.0 percent of 98% total revenues 96% 94% o Customer portfolio 92% 90% • The 10 largest customers represent 39.2 percent Q2'15 Q2'16 Q2'17 Q2'18 Q2'19 of total revenue

  13. Slide 13: Customer development

    Customer development Revenue customer split MNOK o Existing customers* Existing customers* New customers (LTM)** • Accounted for 94.1 percent of revenues in Q2’19 600 o New customers** 500 • Customers won over the past year generated 400 revenues of NOK 30.6 million in Q2’19 300 200 100 * Existing c

  14. Slide 14: Regional organisation

    Regional organisation Trondheim 124 Bouvet Nord ansatte 541 Bouvet Øst ansatte 38 Sesam ansatte 94 Bouvet Bergen Bergen Borlänge ansatte Sandvika Oslo Ørebro Stockholm Haugesund 488 Bouvet Rogaland Sandefjord ansatte Stavanger Skien Arendal Kristiansand 68 Bouvet Sverige ansatte 24 Konsernstab 78 Bo

  15. Slide 15: Enthusiastic and competent employees

    Enthusiastic and competent employees o 1 455 employees at the end of the quarter Number of employees end of quarter • Up 50 from Q1’19 2000 • 151 more employees in the past 12 months 1500 • Average number of employees in the quarter up 1000 11.5 percent from Q2’18 500 0 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19

  16. Slide 16: Magnet award 2019

    Magnet award 2019 NM – employer branding o «24 hours hackathon» • Gold - Open category • Bronze – Best campaign 16

  17. Slide 17: Financial Review

    © Financial Review 17

  18. Slide 18: Key figures

    Key figures Three months ending Six months ending Twelve months ending MNOK 30.06.2019 30.06.2018 Change 30.06.2019 30.06.2018 Change 30.06.2019 30.06.2018 Change Operating revenue 518.4 453.7 14.3 % 1 082.7 915.9 18.2 % 2 013.4 1 718.6 17.2 % Operating profit (EBIT) 59.3 55.7 6.3 % 128.1 106.3 20.5

  19. Slide 19: Revenue

    Revenue Revenue split (quarterly figures) MNOK Own consultants o Revenues increased by 14.3 percent y-o-y 600 Sub-contracted consultants 500 Other • Revenues from own consultants increased by 13.7 400 percent to NOK 429.5 million 300 200 • Revenues from sub-contracted consultants increased by 100 16

  20. Slide 20: Revenues from own consultants

    Revenues from own consultants Revenue per employee (quarterly figures) o Increased 13.7 percent y-o-y TNOK 400 • Positive impact from 11.5 percent increase in average 300 number of employees 200 • Positive impact from 4.2 percent increase in prices for group hourly services 100 • Positive impact fro

  21. Slide 21: Analysis of change in revenues y-o-y

    Analysis of change in revenues y-o-y Revenue MNOK 50 44,3 40 30 20 18,2 9,6 10 4,1 3,6 3,5 0 -6,3 -10 -12,3 -20 No. of employees Hourly rate Sub-contractors Billing ratio Sick leave & other Other revenue Easter vacation Number of work days 21

  22. Slide 22: Earnings

    Earnings EBIT and EBIT margin MNOK and Percent o Operating profit (EBIT) increased by 6.3 percent to 80 EBIT EBIT margin 14% NOK 59.3 million 12% 60 10% o EBIT margin of 11.4 percent compared to 12.3 8% 40 percent in Q2’18 6% 20 4% o Operating expenses increased by 15.4 percent y-o-y 0 2% 0% Q2'15 Q

  23. Slide 23: Change in revenues – effect on EBIT

    Change in revenues – effect on EBIT Revenue MNOK 50 Change in Revenue Effect on EBIT 44,3 40 30 20 18,2 12,3 9,6 10 8,6 4,1 3,6 3,5 2,8 2,3 0,8 0,9 0 -1,1 -10 -6,3 -8,3 -12,3 -20 No. of employees Hourly rate Sub-contractors Billing ratio Sick leave & other Other revenue Easter vacation Number of wor

  24. Slide 24: Cash flow

    Cash flow Cash flow from operations (per quarter) o Cash flow from operations MNOK 250 • NOK 32.2 million in Q2’19 compared to NOK 31.8 million 200 in Q2’18 150 o Last 12 months 100 50 • Operational cash flow over the last 12 months was NOK 0 238.3 million -50 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19 o Cash fl

  25. Slide 25: Outlook

    Outlook 25

  26. Slide 26: 26

    26

  27. Slide 27: Outlook

    Outlook o High demand o Increased demand for cross- functional teams o Increased demand for platform, IoT, security and cloud competence o Challenging recruitment o Many newly graduated to be onboarded in Q3 27

  28. Slide 28: Shareholders as of 22.08.2019

    Shareholders as of 22.08.2019 Shareholders Number of shares % of total VARNER KAPITAL AS 1 070 000 10,44 % Virtus KAR International Small-Cap 922 781 9,00 % STENSHAGEN INVEST AS 736 699 7,19 % VERDIPAPIRFONDET NORDEA AVKASTNING 618 583 6,03 % SVERRE HURUM 491 779 4,80 % VEVLEN GÅRD AS 453 502 4,42 %

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