Bouvet Asa · OSL:BOUV
Bouvet Asa — Q4 2019 Earnings Presentation
33 slides from Bouvet Asa's earnings presentation, Feb 25, 2020
Slide 1: Interim presentation Fourth quarter 2019
Interim presentation Fourth quarter 2019 Sverre Hurum, CEO Erik Stubø, CFO 25 February 2020
Slide 2: #bouvetdeler
#bouvetdeler 2
Slide 3: Breakfast seminars
Breakfast seminars 3
Slide 4: BouvetOne
«Bzerekraft og hva vi bidrar med» ;
Slide 5: Universum Professional Survey and YPAI 2019
Universum Professional Survey and YPAI 2019 Source: https://universumglobal.com/rankings/norway/2019/ Source: Young Professional Attraction Index 2019, Academic work 5
Slide 6: Highlights in the quarter
Highlights in the quarter Revenue and number of employees MNOK and number o Revenue and EBIT 650 600 • Operating revenues increased by 9.9 percent 550 500 450 to NOK 588.5 million (y‐o‐y) 400 350 • EBIT increased by 9.5 percent to NOK 71.4 300 250 200 million (y‐o‐y) 150 100 50 o 1 557 employees 0 Q
Slide 7: Bouvet's vision
Bouvet’s vision We lead the way and build tomorrow’s society
Slide 8: Bouvet's ambition
Bouvet’s ambition We will be the most credible consultancy with the most satisfied employees and clients
Slide 9: Long-term goals
Long‐term goals Best workplace Client‐oriented and Successful business long‐term relations
Slide 10: Operational Review
©) Operational Review 10
Slide 11: 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
Slide 12: Public and private sector
Public and private sector Public sector Private sector 50,9 % 52,9 % in Q4’18 47,1 % in Q4’18 49,1 % 12
Slide 13: Business sectors Q4 2019
Business sectors Q4 2019 Other Bank & finance Retail 6,0 % 1,7 % 4,3 % Power supply Transportation 10,3 % 6,2 % Service industry Health 3,9 % 2,0 % 4,5 % Industry 4,0 % Info and communication Oil & gas 28,6 % 28,5 % Public admin 13
Slide 14: Sectors with high increase in revenue
Sectors with high increase in revenue o Oil & gas • Increased by 24.9 percent (y‐o‐y) • Represents 28.6 percent of total revenues in Q4’19 o Retail • Increased by 17.3 percent (y‐o‐y) • Represents 6 percent of total revenues in Q4’19 o Industry • Increased by 26.6 percent (y‐o‐y) • Represents 4.5 pe
Slide 15: New agreement with Svenska Kraftnät and Fifty
New agreement with Svenska Kraftnät and Fifty o Svenska Kraftnät has trusted Bouvet to strengthen deliveries within: • Project management • Enterprise architecture (EA) • Solution architecture o The contract has a value of approximately 6,2 MNOK and extends throughout 2019 15
Slide 16: BKK has signed an analytics agreement with Bouvet
BKK has signed an analytics agreement with Bouvet o BKK have decided to build a company wide analytics platform to enable analytics to drive innovation in the entire BKK group o Bouvet is chosen to be their analytics partner o The duration of the agreement is up to 4 years o Bouvet provide resources
Slide 17: Bouvet training 2019
Bouvet training 2019 o More than 5 500 participants attended 420 courses (1 ‐ 5 days each) o 40% of revenue was customer specific training o 15 breakfast seminars with over 1300 participants in total
Slide 18: Customer and project mix
Customer and project mix Variably priced contracts share of revenues Percentage o Project mix 100% • Variable contracts account for 98.3 percent of 98% total revenues 96% 94% o Customer portfolio 92% 90% • The 10 largest customers represent 41.5 percent Q4'15 Q4'16 Q4'17 Q4'18 Q4'19 of total revenue
Slide 19: Customer development
Customer development Revenue customer split MNOK o Existing customers* Existing customers* New customers (LTM)** • Accounted for 94.3 percent of revenues in Q4’19 700 o New customers** 600 • Customers won over the past year generated 500 revenues of NOK 33.7 million in Q4’19 400 300 200 100 * Existi
Slide 20: Five largest clients per region
Five largest clients per region Trondheim Forsvaret Bergen Borlänge Sandvika Oslo Ørebro Stockholm Haugesund Sandefjord Stavanger Skien Arendal Kristiansand 20
Slide 21: Regional organisation
Regional organisation Trondheim 132 Bouvet Nord ansatte 562 Bouvet Øst ansatte 45 Sesam ansatte 110 Bouvet Bergen Bergen Borlänge ansatte Sandvika Oslo Ørebro Stockholm Haugesund 524 Bouvet Rogaland Sandefjord ansatte Stavanger Skien Arendal Kristiansand 76 Bouvet Sverige ansatte 26 Konsernstab 82 B
Slide 22: Enthusiastic and competent employees
Enthusiastic and competent employees o 1 557 employees at the end of the quarter Number of employees end of quarter • Up 12 from Q3’19 2000 • 188 more employees in the past 12 months 1500 • Average number of employees in the quarter up 1000 13.7 percent from Q4’18 500 0 Q4'15 Q4'16 Q4'17 Q4'18 Q4'19
Slide 23: Financial Review
©) Financial Review 23
Slide 24: Key figures
Key figures Three months ending Twelve months ending MNOK 31.12.2019 31.12.2018 Change 31.12.2019 31.12.2018 Change Operating revenue 588.5 535.4 9.9 % 2 132.1 1 846.7 15.5 % Operating profit (EBIT) 71.4 65.2 9.5 % 232.1 191.6 21.1 % EBIT margin 12.1 % 12.2 % 10.9 % 10.4 % Ordinary profit before tax
Slide 25: Revenue
Revenue Revenue split (quarterly figures) MNOK 700 Own consultants o Revenues increased by 9.9 percent y‐o‐y Sub‐contracted consultants 600 Other 500 • Revenues from own consultants increased by 11.6 400 percent to NOK 491.4 million 300 200 • Revenues from sub‐contracted consultants increased by 9 1
Slide 26: Revenues from own consultants
Revenues from own consultants Revenue per employee (quarterly figures) o Increased 11.6 percent y‐o‐y TNOK 400 • Positive impact from 13.7 percent increase in average 300 number of employees 200 • Positive impact from 5.1 percent increase in prices for group hourly services 100 • Negative impact fro
Slide 27: Analysis of change in revenues y-o-y
Analysis of change in revenues y‐o‐y Revenue MNOK 70 60,1 60 50 40 30 24,7 20 10 6,3 0 ‐3,4 ‐4,3 ‐10 ‐9,3 ‐20 ‐21,0 ‐30 No. of employees Hourly rate Sub‐contractors Progress in projects Other revenue Vacation, leave etc. Billing ratio 27
Slide 28: Earnings
Earnings EBIT and EBIT margin MNOK and Percent o Operating profit (EBIT) increased by 9.5 percent to 80 EBIT EBIT margin 14% NOK 71.4 million 12% 60 10% o EBIT margin of 12.1 percent compared to 12.2 8% 40 percent in Q4’18 6% 20 4% 2% o Operating expenses increased by 10 percent y‐o‐y 0 0% Q4'15 Q4'
Slide 29: Change in revenues – effect on EBIT
Change in revenues – effect on EBIT Revenue MNOK 70 Change in Revenue Effect on EBIT 60,1 60 50 40 30 24,7 20 18,0 14,7 10 6,3 0,5 0 ‐2,4 ‐1,4 ‐2,8 ‐3,4 ‐4,3 ‐10 ‐9,3 ‐15,3 ‐20 ‐21,0 ‐30 No. of employees Hourly rate Sub‐contractors Progress in projects Other revenue Vacation, leave etc. Billing rati
Slide 30: Cash flow
Cash flow Cash flow from operations (per quarter) o Cash flow from operations MNOK 250 • NOK 229.8 million in Q4’19 compared to NOK 215.9 200 million in Q4’18 150 o Last 12 months 100 50 • Operational cash flow over the last 12 months was NOK 0 277.1 million ‐50 Q4'15 Q4'16 Q4'17 Q4'18 Q4'19 o Cash
Slide 31: Outlook
Outlook 31
Slide 32: Outlook
Outlook o Global uncertainty o Rapid change in society and customer behaviour o High demand for system development o Moving from projects to products o Increased demand for platform, cloud, AI/ML and security o Increased demand for service design and change management o Sustainability will have an i
Slide 33: Shareholders as of 25.02.2020
Shareholders as of 25.02.2020 Shareholders Number of shares % of total VARNER KAPITAL AS 1 070 000 10,44 % Virtus KAR International Small‐Cap 1 048 427 10,23 % STENSHAGEN INVEST AS 586 699 5,72 % SVERRE HURUM 462 068 4,51 % VEVLEN GÅRD AS 453 502 4,42 % VERDIPAPIRFONDET NORDEA AVKASTNING 370 005 3,6