Bouvet Asa · OSL:BOUV
Bouvet Asa — Q2 2023 Earnings Presentation
31 slides from Bouvet Asa's earnings presentation, Aug 30, 2023
Slide 1: Interim Presentation Second Quarter 2023
INTERIM PRESENTATION SECOND QUARTER 2023 30 AUGUST 2023 Per Gunnar Tronsli, CEO Trude Hole, CFO
Slide 2: Highlights in the quarter
Highlights in the quarter Revenue MNOK Revenue and EBIT 1000 800 • Operating revenues increased by 14.3 percent 600 to NOK 833 million (y-o-y) 400 200 • EBIT decreased by 0.2 percent to NOK 89 million 0 (y-o-y) Q2'19 Q2'20 Q2'21 Q2'22 Q2'23 2 159 employees Number of employees 2500 • Up 48 from Q1’23
Slide 3: Operational Review
OPERATIONAL REVIEW a».
Slide 4: Public and private sector
Public and private sector Q2’23 Q2’22 42.2 % 44.2 % 57.8 % 55.8 % Public sector Private sector INTERIM PRESENTATION 4
Slide 5: Business sectors
Business sectors Other Health Retail Industry Info and Transportation communication 3.2 % 1.9 % Service industry 4.3 % 1.9 % 5.0 % 4.2 % 5.0 % 18.0 % Power supply Oil & gas* 16.7 % 39.8 % Public admin *Includes renewables INTERIM PRESENTATION 5
Slide 6: Our vision
Our vision We lead the way and b uild tomorrow’s society. INTERIM PRESENTATION 6
Slide 7: Artificial intelligence creates competitive advantages
Artificial intelligence creates competitive advantages • Viking delivers vehicle-related services, 24-hour emergency and customer support, call-centre services and medical help for foreign tourists • Introducing AI applications to register assistance assignments for car rescue and travel • AI summar
Slide 8: Frame agreement with all of Norway's health authorities
Frame agreement with all of Norway’s health authorities • Covers all Bouvet’s areas of expertise and regions • Includes all health authorities in Norway • Crucial agreement for participating in building tomorrow’s health service INTERIM PRESENTATION 8
Slide 9: Western Norway RHA
Western Norway RHA • Supported the Western Norway Regional Health Authority in adopting Microsoft 365 • Transferred solutions used by 30 000 employees to the cloud • Microsoft 365 gives staff and managers a good tool for project and document management, internal communication, insight and analysis •
Slide 10: Hydro
Hydro • Long-term digitalisation partner • Advanced production and asset management • Realtime systems, internet of things, data engineering and data science • Scale-out through international implementation projects • Increasing activity Foto: Hydro INTERIM PRESENTATION 10
Slide 11: Boliden
Boliden • Green Zinc Odda 4.0 is a large twin transition expansion project • Bouvet provides digital engineering and architecture support to the capital project • Bouvet also supports Odda management and staff in preparing to operate and continually improve the new factory Foto: Boliden INTERIM PRES
Slide 12: Partnership with Health2B
Partnership with Health2B – innovation work contributing to tomorrow’s society • Realise tomorrow’s health service together with the sector • Collaboration and innovation between public and private sectors, across state agencies and between companies • Health2B will be a door-opener between business
Slide 13: The four largest sectors
The four largest sectors Oil & gas * • Increased by 29.7 percent (y-o-y) • Represents 39.8 percent of total revenues in Q2’23 Power supply • Increased by 31.1 percent (y-o-y) • Represents 18 percent of total revenues in Q2’23 Public admin • Decreased by 0.8 percent (y-o-y) • Represents 16.8 percent
Slide 14: Customer mix
Customer mix Customer portfolio 10 largest customers share of revenues Percentage • The 10 largest customers represent 63.2 70% percent of total revenues – up from 55.4 60% percent in Q2’22 50% 40% • The 20 largest customers represent 72.1 30% percent of total revenues – up from 64 20% percent in Q2
Slide 15: Customer development
Customer development Existing customers* Revenue customer split MNOK • Accounted for 97.4 percent of revenues in Q2’23 900 Existing customers* New customers (LTM)** 800 New customers** 700 • Customers won over the past year generated 600 revenues of NOK 21.5 million in Q2’23 500 400 300 200 100 0 Q2
Slide 16: Local presence
Local presence 203 Bouvet Nord 684 Bouvet Øst 173 Bouvet Bergen 37 Sesam 827 Bouvet Rogaland 38 Group services 114 Bouvet Sør 83 Bouvet Sverige INTERIM PRESENTATION 16
Slide 17: Among the top 10 most attractive employers in Norway
Among the top 10 most attractive employers in Norway • Randstad Employer Brand Research 2023 • Includes well-known enterprises as Equinor, NRK, Hydro, Aker and DNV • Reflects the fellowship and culture in Bouvet and the job done every day by its employees INTERIM PRESENTATION 17
Slide 18: Enthusiastic and highly competent employees
Enthusiastic and highly competent employees 2 159 employees at the end of the quarter Number of employees end of quarter 2500 • Up 48 from Q1’23 2000 1500 • 247 more employees in the past 12 months 1000 500 • Average number of employees in the quarter up 0 Q2'19 Q2'20 Q2'21 Q2'22 Q2'23 13 percent fr
Slide 19: Financial Review
FINANCIAL REVIEW |
Slide 20: Key figures
Key figures Three months ending Six months ending Twelve months ending MNOK 30.06.2023 30.06.2022 Change 30.06.2023 30.06.2022 Change 30.06.2023 30.06.2022 Change Operating revenue 833.0 729.0 14.3 % 1 778.1 1 540.1 15.5 % 3 323.5 2 863.4 16.1 % Operating profit (EBIT) 89.0 89.2 -0.2 % 220.7 212.0 4
Slide 21: Revenue
Revenue Revenues increased by 14.3 percent y-o-y Revenue split (quarterly figures) MNOK Own consultants Sub-contracted consultants • Revenues from own consultants increased by 1000 Other 800 15.9 percent to NOK 727.6 million 600 400 200 • Revenues from sub-contracted consultants 0 increased by 8.9 p
Slide 22: Revenues from own consultants
Revenues from own consultants Increased 15.9 percent y-o-y Revenue per employee (quarterly figures) TNOK 500 • Positive impact from 13 percent increase in 400 average number of employees 300 200 100 • Positive impact from 7.9 percent increase in 0 Q2'19 Q2'20 Q2'21 Q2'22 Q2'23 price for group hourly
Slide 23: Analysis of change in revenues y-o-y
Analysis of change in revenues y-o-y Revenue MNOK 80 69.9 60 49.4 40 20 8.8 7.4 6.4 0 -3.4 -10.5 -20 -23.9 -40 No. of employees Hourly rate Sick-/Maternity Sub-contractors Other effects Other income No. of workdays Billing ratio leave INTERIM PRESENTATION 23
Slide 24: Earnings
Earnings • Operating profit (EBIT) decreased by 0.2 percent to EBIT and EBIT margin MNOK and Percent NOK 89 million 150 EBIT EBIT margin 16% 14% 12% • EBIT margin of 10.7 percent compared to 12.2 100 10% 8% percent in Q2’22 50 6% 4% 2% • Operating expenses increased by 16.3 percent y-o-y 0 Q2'19 Q2'
Slide 25: Other operating expenses
Other operating expenses Other OpEx split (quarterly figures) MNOK Travel, courses, recruitments and social events Other Increased 42.4 percent y-o-y 100 80 • Travel, courses, recruitments and social events 60 40 increased by 76.1 percent to NOK 43.3 million 20 0 • Other costs increased by 18.4 perc
Slide 26: Change in revenues – effect on EBIT
Change in revenues – effect on EBIT MNOK 40 37.2 Effect on EBIT 30 19.5 20 10 4.0 0.7 3.5 0 -0.8 -10 -8.0 -20 -18.0 -30 No. of employees Hourly rate Sick-/Maternity leave Sub-contractors Other effects Other income No. of workdays Billing ratio INTERIM PRESENTATION 26
Slide 27: Cash flow
Cash flow Cash flow from operations (per quarter) Cash flow from operations MNOK • NOK 118.3 million in Q2’23 compared to NOK 36,7 250 200 million in Q2’22 150 100 Cash flow last 12 months 50 0 • Operational cash flow over the last 12 months was Q2'19 Q2'20 Q2'21 Q2'22 Q2'23 Cash flow from operation
Slide 28: Outlook
OUTLOOK A
Slide 29: Outlook summary
Outlook summary • Rapid technological development • Generative AI • Clients seeking strategic partnerships • Main drivers for digitalisation • Data-driven transformation • Energy transformation • Security situation • Demographic change • Strong demand in sectors Bouvet is present • Good access to ta
Slide 30: Appendix
APPENDIX Interim presentation Second quarter 2023
Slide 31: Shareholders as of 30.08.2023
Shareholders as of 30.08.2023 Shareholders Number of shares % of total FOLKETRYGDFONDET 8 157 144 7,86 % VARNER KAPITAL AS 6 051 000 5,83 % VERDIPAPIRFOND ODIN NORDEN 5 807 586 5,59 % STENSHAGEN INVEST AS 5 366 990 5,17 % The Bank of New York Mellon (nominee acc.) 4 574 063 4,41 % SVERRE FINN HURUM