Bouvet Asa · OSL:BOUV
Bouvet Asa — Q3 2019 Earnings Presentation
31 slides from Bouvet Asa's earnings presentation, Nov 7, 2019
Slide 1: Interim presentation Third quarter 2019
Interim presentation Third quarter 2019 Sverre Hurum, CEO Erik Stubø, CFO 7 November 2019
Slide 2: Bouvet's ambition
Bouvet’s ambition We will be the most credible consultancy with the most satisfied employees and clients 2
Slide 3: Long-term goals
Long‐term goals Best workplace Client‐oriented and long‐term Successful business relations 3
Slide 4: 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 16.6 percent 500 450 to NOK 460.9 million (y‐o‐y) 400 350 300 • EBIT increased by 61.9 percent to NOK 32.6 250 200 million (y‐o‐y) 150 100 50 o 1 545 employees 0 Q3'
Slide 5: Operational Review
©) Operational Review
Slide 6: 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 7: Security has an implication on all our services
Security has an implication on all our services Enterprise architect Functional Project manager Operation architect Architect Change manager Developer Governance Information architect UX‐designer Team manager Developer Test manager Product Development Infrastructure architect Bouvet Communication 7
Slide 8: Public and private sector
Public and private sector Public sector Private sector 47.7 % 48,4 % in Q3’18 51,6 % in Q3’18 52.3 % 8
Slide 9: Business sectors Q3 2019
Business sectors Q3 2019 Other Bank & finance Retail 2.0 % 4.3 % Power supply 5.7 % Transportation 9.2 % 7.1 % Health 2.0 % Service industry Industry 4.2 % 5.0 % 3.8 % Info and communication Oil & gas 30.0 % 26.7 % Public admin 9
Slide 10: Sectors with high increase in revenue
Sectors with high increase in revenue o Oil & gas Forsvaret • Increased by 34.4 percent (y‐o‐y) • Represents 30 percent of total revenues in Q3’19 o Public admin • Increased by 14.5 percent (y‐o‐y) • Represents 26.7 percent of total revenues in Q3’19 o Industry • Increased by 28 percent (y‐o‐y) • Re
Slide 11: Innovation at Statsbygg
Innovation at Statsbygg o Using service design to conduct an innovation competition o Delivering and implementing an innovation framework 11
Slide 12: The City of Bergen is going forward to become a Smart City
The City of Bergen is going forward to become a Smart City o The City of Bergen uses data from sensors and cross disciplinary systems to make Bergen a Smart City o Use of data will be more important to realise the municipality's strategy in the future o Bouvet´s deliveries: • Consulting • Developing
Slide 13: Enabling the Digital Field Worker for New Energy Solutions
Enabling the Digital Field Worker for New Energy Solutions o Equinor is transforming their field workers to be digital o Bouvet contribute to: • Applying the Digital Field worker apps to New Energy Solutions • Enabling Work Orders and Notifications apps for Dudgeon, Hywind and Sheringham Shoal 13
Slide 14: Full-service agency
Full‐service agency o Bouvet has a strong presence in: • E‐commerce shops • Omnichannel solutions o Customers: • Vinmonopolet, Servicegrossistene, Avinor Tax‐ free and Cappelen Damm o Bouvet´s deliveries as a full‐service agency are: • Business consulting • Setup • Programming • UX 14
Slide 15: Customer and project mix
Customer and project mix Variably priced contracts share of revenues Percentage o Project mix 100% • Variable contracts account for 98.2 percent of 98% total revenues 96% 94% o Customer portfolio 92% 90% • The 10 largest customers represent 41.6 percent Q3'15 Q3'16 Q3'17 Q3'18 Q3,19 of total revenue
Slide 16: Customer development
Customer development Revenue customer split MNOK o Existing customers* Existing customers* New customers (LTM)** • Accounted for 95.7 percent of revenues in Q3’19 500 450 o New customers** 400 • Customers won over the past year generated 350 revenues of NOK 19.8 million in Q3’19 300 250 200 150 100
Slide 17: Regional organisation
Regional organisation Trondheim 132 Bouvet Nord ansatte 559 Bouvet Øst ansatte 40 Sesam ansatte 105 Bouvet Bergen Bergen Borlänge ansatte Sandvika Oslo Ørebro Stockholm Haugesund 524 Bouvet Rogaland Sandefjord ansatte Stavanger Skien Arendal Kristiansand 74 Bouvet Sverige ansatte 25 Konsernstab 86 B
Slide 18: Enthusiastic and competent employees
Enthusiastic and competent employees o 1 545 employees at the end of the quarter Number of employees end of quarter • Up 90 from Q2’19 2000 • 203 more employees in the past 12 months 1500 • Average number of employees in the quarter up 1000 14 percent from Q3’18 500 0 Q3'15 Q3'16 Q3'17 Q3'18 Q3'19 A
Slide 19: lw ede cde cd cde cu edu car cer
lw ede cde cd cde cu edu car cer odav ie ae ~, ti “t < \t dy of ® rr hi |
Slide 20: Rated as 10th most attractive employer in Norway
Rated as 10th most attractive employer in Norway “Furthermore, I must boast a bit about our onboarding program, both professionally and socially. You receive everything you need in professional terms, at the same time as you get to know both our other new recruits and the rest of the company really
Slide 21: Financial Review
©) Financial Review 21
Slide 22: Key figures
Key figures Three months ending Nine months ending Twelve months ending MNOK 30.09.2019 30.09.2018 Change 30.09.2019 30.09.2018 Change 30.09.2019 30.09.2018 Change Operating revenue 460.9 395.4 16.6 % 1 543.5 1 311.3 17.7 % 2 078.9 1 769.7 17.5 % Operating profit (EBIT) 32.6 20.1 61.9 % 160.7 126.4
Slide 23: Revenue
Revenue Revenue split (quarterly figures) MNOK Own consultants o Revenues increased by 16.6 percent y‐o‐y 600 Sub‐contracted consultants 500 Other • Revenues from own consultants increased by 18.5 400 percent to NOK 392.6 million 300 200 • Revenues from sub‐contracted consultants increased by 100 10
Slide 24: Revenues from own consultants
Revenues from own consultants Revenue per employee (quarterly figures) o Increased 18.5 percent y‐o‐y TNOK 400 • Positive impact from 14 percent increase in average 300 number of employees 200 • Positive impact from 4.6 percent increase in prices for group hourly services 100 • Negative impact from
Slide 25: Analysis of change in revenues y-o-y
Analysis of change in revenues y‐o‐y Revenue MNOK 50 47.0 40 30 20 18.7 10 5.3 5.1 0.8 0 ‐10 ‐11.5 ‐20 No. of employees Hourly rate Number of work days Sub‐contractors Other effects Billing ratio 25
Slide 26: Earnings
Earnings EBIT and EBIT margin MNOK and Percent o Operating profit (EBIT) increased by 61.9 percent to 80 EBIT EBIT margin 14% NOK 32.6 million 12% 60 10% o EBIT margin of 7.1 percent compared to 5.1 percent 8% 40 in Q3’18 6% 20 4% o Operating expenses increased by 14.1 percent y‐o‐y 0 2% 0% Q3'15 Q3
Slide 27: Change in revenues – effect on EBIT
Change in revenues – effect on EBIT Revenue MNOK 50 Change in Revenue Effect on EBIT 47.0 40 30 20 18.7 13.3 10 9.1 5.3 5.1 3.8 0.5 0.8 0.1 0 ‐10 ‐8.2 ‐11.5 ‐20 No. of employees Hourly rate Number of work days Sub‐contractors Other effects Billing ratio 27
Slide 28: Cash flow
Cash flow Cash flow from operations (per quarter) o Cash flow from operations MNOK 250 • NOK 10.8 million in Q3’19 compared to NOK ‐14.1 million 200 in Q3’18 150 o Last 12 months 100 50 • Operational cash flow over the last 12 months was NOK 0 263.2 million ‐50 Q3'15 Q3'16 Q3'17 Q3'18 Q3'19 o Cash f
Slide 29: Outlook
Outlook 29
Slide 30: Outlook
Outlook o Still good market o Global uncertainty o Increased demand for cross‐ functional teams o Increased demand for service design, platform, security and cloud competence o Many new graduates onboarded in Q3 30
Slide 31: Shareholders as of 07.11.2019
Shareholders as of 07.11.2019 Shareholders Number of shares % of total VARNER KAPITAL AS 1 070 000 10,44 % Virtus KAR International Small‐Cap 1 035 170 10,10 % STENSHAGEN INVEST AS 736 699 7,19 % VERDIPAPIRFONDET NORDEA AVKASTNING 526 883 5,14 % SVERRE HURUM 491 779 4,80 % VEVLEN GÅRD AS 453 502 4,4