Bouvet ASA · OSL:BOUV

Bouvet ASA — Q1 2016 Earnings Presentation

26 slides from Bouvet ASA's earnings presentation, May 12, 2016

  1. Slide 1: Interim presentation First quarter 2016

    Interim presentation First quarter 2016 Sverre Hurum. CEO Erik Stubø. CFO 12 May 2016

  2. Slide 2: 12 May 2016 Interim presentation 1st quarter 2016

    2 12 May 2016 Interim presentation 1st quarter 2016

  3. Slide 3: Highlights in the quarter

    Highlights g g in the q quarter • Revenues and EBIT Revenues and number of employees MNOK and number – Operating revenues declined by 1.2 350 percent to NOK 322.9 million (y-o-y) 300 – EBIT declined by 36.5 percent to 250 NOK 20.3 million (y (y-o-y) y) 200 150 • 1036 employees 100 – Equal to Q4’15 5

  4. Slide 4: Operational Review

    i Operational Review —

  5. Slide 5: Increase in public sector

    Increase in p public sector Public sector Privat sector 38,5 % in Q1’15 46.5 % 61,5 % in Q1’15 53.5 % 5 12 May 2016 Interim presentation 1st quarter 2016

  6. Slide 6: Business sectors Q1 2016

    Business sectors Q Q1 2016 Other Bank & finance Retail 3.1 % 4.8 % Power supply 5.9 % 84% 8.4 Health Transportation 10.4 % 5.2 % Industry Service industry 5.1 % 4.8 % Info and communication 56% 5.6 22.8 % Oil & gas 23.9 % Public admin 6 12 May 2016 Interim presentation 1st quarter 2016

  7. Slide 7: Sectors with high increase in revenue

    Sectors with high g increase in revenue • Public admin – Increased by 40 40.0 0 percent (y (y-o-y) o y) – Represents 23.9 percent of total revenue in Q1’16 • Transportation p – Increased by 21.7 percent (y-o-y) – Represents 10.4 percent of total revenue in Q1’16 • Health – Increased by 27.8 percent

  8. Slide 8: Air Control for Northern Europe

    Air Control for Northern Europe p • Air Command and Control system for NATO – Planning, reporting, execution – Operational and tactical level – Used by NATO Airborne Early Warning and Control Force • Frame a e ag agreement ee e – Development and upgrade of NEC CCIS – 2016 + 3 years Kilde: https://ww

  9. Slide 9: From manual to digital inspections

    From manual to digital g inspections p • New mobile inspection solution for Engie – Real-time data – Increased number of inspections – Annual reduced cost estimated to 5-10 millions NOK at Gjøa platform • Bouvet owns the software Kilde: tu.no 9 May 12, 2016 Interim presentation 1st quarter 2016

  10. Slide 10: Reduced cost by understanding customer needs

    Reduced cost byy understanding g customer needs • Viasat challenged Bouvet to reduce number of giveaways at the customer service • p an IoT which Bouvet developed reward collective actions • 51% cost reduction after three weeks 10 May 12, 2016 Interim presentation 1st quarter 2016

  11. Slide 11: Customer and project mix

    Customer and p project j mix • Project mix Variably priced contracts share of revenues Percentage – Variable contracts account for 100% 95.6 percent of total revenues 90% 80% • Cli t portfolio Client tf li 70% 60% – The 10 largest customers 50% represent 35.2 percent of Q1'11 Q1'12 Q1'13 Q1'14 Q1'15

  12. Slide 12: Client development

    Client development p • Existing clients* Revenues customer split MNOK – Accounted for 87.5 percent of Existing customers* New customers (LTM)** revenues in Q1’16 350 • N New customers** t ** 300 – Customer won over the past 250 year generated revenues of 200 NOK 40.4 million in Q1’16 150 100 50 * Ex

  13. Slide 13: Regional organisation

    Regional g organisation g 87 61 20 Trondheim 414 Bergen Sandvika Ørebro Stockholm Haugesund Oslo 323 Sandefjord Stavanger Skien Group Kristiansand Arendal 58 management and staff: 17 Malmø 56 13 12 May 2016 Interim presentation 1st quarter 2016

  14. Slide 14: Enthusiastic and competent employees

    Enthusiastic and competent p employees p y • 1 036 employees at the end of Number of employees end of quarter the first quarter 1200 – Equal to Q4’15 1000 800 – 36 more employees in the 600 past 12 months 400 200 – Average number of 0 Q1'11 Q1'12 Q1'13 Q1'14 Q1'15 Q1'16 employees p y in the q quarte

  15. Slide 15: Improved score at Great Place to Work

    Improved p score at Great Place to Work 15 12 May 2016 Interim presentation 1st quarter 2016

  16. Slide 16: Financial Review

    Financial Review

  17. Slide 17: Key figures

    Keyy figures g Three months ending Twelve months ending MNOK 31.03.2016 31.03.2015 Change 31.03.2016 31.03.2015 Change Operating revenue 322.9 327.0 -1.2 % 1 228.4 1 158.7 6.0 % Operating profit (EBIT) 20.3 32.0 -36.5 % 87.7 84.2 4.1 % EBIT margin 63% 6.3 98% 9.8 71% 7.1 73% 7.3 Ordinary profit befo

  18. Slide 18: Revenues

    Revenues • Revenues declined by 1.2 percent Revenue split (quarterly figures) MNOK y-o-y 350 Own consultants 300 – Revenues from own consultants Sub-contracted consultants 250 Other declined by 3.3 percent to NOK 200 273 0 million 273.0 illi 150 100 – Revenues from sub-contracted 50 consultants incr

  19. Slide 19: Revenues from own consultants

    Revenues from own consultants • Declined 3.3 percent y-o-y Revenue per employee (quarterly figures) TNOK – 61 workdays in Q1’16 – two less 300 than Q1’15 250 200 – Negative g impact p from decline in 150 billing ratio by 2.0 percentage 100 points 50 0 – Positive impact from 3.0 percent Q1'11 Q1'12 Q

  20. Slide 20: Analysis of change in revenues y-o-y

    Analysis y of change g in revenues yy-o-yy Revenue MNOK 10 8 6 4 8.2 7.9 2 2.1 0.4 0 -2.8 -2 -4.6 -6.8 -4 -8.5 -6 -8 -10 No of employees Sub-contractors Hourly rate Other effects Other income Progress in Billing ratio No of work days projects j t 20 12 May 2016 Interim presentation 1st quarter 2016

  21. Slide 21: Change in revenues – effect on EBIT

    Change g in revenues – effect on EBIT Revenue MNOK 10 Change in Revenue Effect on EBIT 8 6 4 8.2 7.9 2 2.1 1.8 1.3 0.7 0.4 0.3 0 -0.7 -2.8 -2 -3.8 -4.6 -5.6 -6.8 -7.0 -4 -8.5 -6 -8 -10 No of employees Sub-contractors Hourly rate Other effects Other income Progress in projects Billing ratio No of wor

  22. Slide 22: Earnings

    Earnings g • Operating profit declined y-o-y in EBIT and EBIT margin MNOK and Percent Q1’16 40 EBIT EBIT margin 15% – EBIT margin of 6.3 percent 30 compared to 9.8 percent in Q1’15 10% 20 • Operating expenses increased by 10 5% 2.6 percent compared to Q1’15 0 0% Q1'11 Q1'12 Q1'13 Q1'14 Q1'15 Q1'16 •

  23. Slide 23: Cash flow

    Cash flow • Cash flow from operations Cash flow from operations (per quarter) MNOK – NOK -17.0 million in Q1’16, down 120 100 from NOK 0.3 million in Q1’15 80 60 • Rolling 12 months 40 20 – Operational cash flow over the last 0 -20 12 months was NOK 110.6 million -40 Q1'11 Q1'12 Q1'13 Q1'14 Q1'15 Q1

  24. Slide 24: Outlook

    Outlook

  25. Slide 25: Outlook

    Outlook • Increase in demand for DevOps and Lean Startup services • Major industry shift driven by gy and customer technology behaviour • Our services and way of collaboration enable our customer to deliver and capture value (c) Popular Mechanics 1957 (c) Popular Mechanics 1957 25 12 May 2016 Interi

  26. Slide 26: Shareholders as of 11.05.2016

    Shareholders as of 11.05.2016 5 Investor Number of shares % of total STENSHAGEN INVEST AS 1 108 402 10,81 % VARNER KAPITAL AS 1 070 000 10,44 % PROTECTOR FORSIKRING ASA 800 000 7,80 % MP PENSJON PK 569 904 5,56 % HURUM SVERRE FINN 507 252 4,95 % SIX SIS AG 400 000 3,90 % VEVLEN GÅRD AS 400 000 3,90

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