Bouvet Asa · OSL:BOUV

Bouvet Asa — Q2 2016 Earnings Presentation

27 slides from Bouvet Asa's earnings presentation, Aug 25, 2016

  1. Slide 1: Interim presentation Second quarter 2016

    Interim presentation Second quarter 2016 Sverre Hurum. CEO Erik Stubø. CFO 25 August 2016

  2. Slide 2: 25 August 2016 Interim presentation 2nd quarter 2016

    2 25 August 2016 Interim presentation 2nd quarter 2016

  3. Slide 3: Customer and technology quotes on digitalisation

    “Our customers have become digital “Technology like automatisation, remote ”We have to collaborate considerably significantly faster than we predicted” operations and 4D technology are closer with our customers in order to essentially to be efficient, profitable and develop products that the end con

  4. Slide 4: Highlights in the quarter

    Highlights in the quarter • Revenue and EBIT Revenue and number of employees MNOK and number – Operating revenues increased by 400 9.4 percent to NOK 345.3 million (y- 350 o-y) 300 – EBIT increased by 18.4 percent to 250 200 NOK 41.0 million (y-o-y) 150 • 1033 employees 100 50 – Down 3 from Q1’16 0

  5. Slide 5: Operational Review

    Operational Review

  6. Slide 6: Increase in public sector

    Increase in public sector Public sector Privat sector 43,3 % in Q2’15 50,5 % 49,5 % 56,7 % in Q2’15 6 25 August 2016 Interim presentation 2nd quarter 2016

  7. Slide 7: Business sectors Q2 2016

    Business sectors Q2 2016 Other Bank & finance Retail 3,1 % 4,1 % Power supply 6,9 % 9,0 % Health Transportation 11,4 % 4,8 % Industry 4,4 % Service industry Info and communication 5,7 % 4,8 % 21,3 % Oil & gas 24,4 % Public admin 7 25 August 2016 Interim presentation 2nd quarter 2016

  8. Slide 8: Sectors with high increase in revenue

    Sectors with high increase in revenue • Public admin – Increased by 40.8 percent (y-o-y) – Represents 24.4 percent of total revenues in Q2’16 • Transportation – Increased by 33.1 percent (y-o-y) – Represents 11.4 percent of total revenues in Q2’16 • Health – Increased by 7.9 percent (y-o-y) – Repres

  9. Slide 9: Long-term client relation leads to partnership

    Long-term client relation leads to partnership • Digitalised The Norwegian National Rail Administration over a period of 12 years • Delivered more than 200 000 hours since 2004 2004 2010 2012 2013 2014 2016 EREX BEST Short time Frame agreement FIDO ARIS SESAM BEST Long time SESAM Energy metering Ord

  10. Slide 10: Live streaming from Rio 2016 on TV2

    Live streaming from Rio 2016 on TV2 • Implemented the video player at TV2.no and SUMO, and made the events at Rio 2016 available 24/7 on all platforms • 2,8 million video streams the first weekend of OL • Between 900k and 1100k unique viewers daily 10 25 August 2016 Interim presentation 2nd quarter

  11. Slide 11: Robots reduce costs by digitalisation

    Robots reduce costs by digitalisation • Robotic Process automation to digitalise letters to the citizens of Bergen municipality • Reducing cost by 12-13 million NOK • Increased efficiency. A “digital employer” handles 720 letters in one day 11 25 August 2016 Interim presentation 2nd quarter 2016

  12. Slide 12: User-focused digitalisation and mobility

    User-focused digitalisation and mobility • Bouvet’s mobile solutions for time, travel, expenses and workflow for public employees give high return on low investment • Statoil has signed a contract for use of the apps 12 25 August 2016 Interim presentation 2nd quarter 2016

  13. Slide 13: Customer and project mix

    Customer and project mix • Project mix Variably priced contracts share of revenues Percentage – Variable contracts account for 100% 96.1 percent of total revenues 90% 80% • Client portfolio 70% 60% – The 10 largest customers 50% represent 34.4 percent of Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 Q2'16 total rev

  14. Slide 14: Client development

    Client development • Existing clients* Revenue customer split MNOK – Accounted for 89.4 percent of Existing customers* New customers (LTM)** revenues in Q2’16 400 • New customers** 350 300 – Customer won over the past year generated revenues of 250 NOK 36.6 million in Q2’16 200 150 100 50 * Existing

  15. Slide 15: Regional organisation

    Regional organisation 86 60 22 Trondheim 414 Bergen Sandvika Ørebro Stockholm Haugesund Oslo 320 Sandefjord Stavanger Skien Group Kristiansand Arendal 60 management and staff: 17 Malmø 54 15 25 August 2016 Interim presentation 2nd quarter 2016

  16. Slide 16: Enthusiastic and competent employees

    Enthusiastic and competent employees • 1 033 employees at the end of Number of employees end of quarter the first quarter 1200 – Down 3 from Q1’16 1000 800 – 15 more employees in the 600 past 12 months 400 200 – Average number of 0 Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 Q2'16 employees in the quarter up 2.7

  17. Slide 17: Financial Review

    Financial Review

  18. Slide 18: Key figures

    Key figures Three months ending Twelve months ending MNOK 30.06.2016 30.06.2015 Change 30.06.2016 30.06.2015 Change Operating revenue 345.3 315.7 9.4 % 1 258.0 1 198.2 5.0 % Operating profit (EBIT) 41.0 34.6 18.4 % 94.0 95.1 -1.1 % EBIT margin 11.9 % 11.0 % 7.5 % 7.9 % Ordinary profit before tax 41.

  19. Slide 19: Revenue

    Revenue • Revenues increased by 9.4 percent Revenue split (quarterly figures) MNOK y-o-y Own consultants 400 Sub-contracted consultants – Revenues from own consultants 300 Other increased by 6.8 percent to NOK 200 286.8 million 100 – Revenues from sub-contracted 0 consultants increased by 41.4 Q2'11

  20. Slide 20: Revenues from own consultants

    Revenues from own consultants • Increased 6.8 percent y-o-y Revenue per employee (quarterly figures) TNOK – 62 workdays in Q2’16 – three more 300 than Q2’15 250 200 – Negative impact from decline in 150 billing ratio by 1.8 percentage 100 points 50 0 – Positive impact from 2.7 percent Q2'11 Q2'12 Q2

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

    Analysis of change in revenues y-o-y Revenue MNOK 15 10 13,6 12,6 5 7,2 2,0 1,7 1,1 1,0 0 -0,6 -1,2 -1,6 -6,4 -5 -10 No. of work Sub- No. of Vacation Overtime/ Sick leave Hourly rate Progress in Other income Maternity Billing ratio days contractors employees extra work- projects leave hours 21 25 Au

  22. Slide 22: Change in revenues – effect on EBIT

    Change in revenues – effect on EBIT Revenue MNOK 15 Change in Revenue Effect on EBIT 10 13,6 12,6 5 9,5 7,2 1,0 1,0 2,0 0,7 1,7 0,2 1,1 0,7 1,0 0,7 0 -0,6 -0,5 -1,2 -0,3 -1,6 -0,7 -4,5 -6,4 -5 -10 No. of work Sub- No. of Vacation Overtime/ Sick leave Hourly rate Progress in Other income Maternity le

  23. Slide 23: Earnings

    Earnings • Operating profit increased y-o-y in EBIT and EBIT margin MNOK and Percent Q2’16 50 EBIT EBIT margin 15% – EBIT margin of 11.9 percent 40 compared to 11.0 percent in Q2’15 30 10% 20 • Operating expenses increased by 5% 10 8.2 percent compared to Q2’15 0 0% Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 Q2'

  24. Slide 24: Cash flow

    Cash flow • Cash flow from operations Cash flow from operations (per quarter) MNOK – NOK 24.8 million in Q2’16 120 100 compared to NOK 28.6 million in 80 Q2’15 60 40 • Rolling 12 months 20 0 -20 – Operational cash flow over the last -40 12 months was NOK 106.8 million Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 Q

  25. Slide 25: Outlook

    Outlook

  26. Slide 26: Outlook

    Outlook • The pace of digital transformation is accelerating • Sharing between industries and countries accelerate innovation Photo: Statnett • Robot technology opens for more companies to move their production back to Norway • Local authorities are not up to speed on digitalisation ”We will develop

  27. Slide 27: Shareholders as of 24.08.2016

    Shareholders as of 24.08.2016 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 700 000 6,83 % VPF NORDEA AVKASTNING 676 120 6,60 % MP PENSJON PK 569 904 5,56 % HURUM SVERRE FINN 507 252 4,95 % VEVLEN GÅRD AS 420

Bouvet — Q2 2016 Earnings Presentation on 6ix