Bouvet Asa · OSL:BOUV
Bouvet Asa — Q2 2020 Earnings Presentation
32 slides from Bouvet Asa's earnings presentation, Aug 25, 2020
Slide 1: Interim presentation Second quarter 2020
Interim presentation Second quarter 2020 25 August 2020 Sverre Hurum, CEO Erik Stubø, CFO
Slide 2: 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 3: 47% of managers see the need of enhancing digital skills
47% of managers see the need of enhancing digital skills in their organisation Source: Survey Bouvet spring 2020 3
Slide 4: Course in agile methodology for Helse Vest IKT's employees
Course in agile methodology for Helse Vest IKT´s employees o Helse Vest IKT arranged an online course for 100 employees o The aim was to learn more about agile methodology and how this approach can contribute to more interdisciplinary innovation when working remote o Bouvet facilitated the course us
Slide 5: Highlights in the quarter
Highlights in the quarter Revenue and number of employees MNOK and number o Revenue and EBIT 700 650 • Operating revenues increased by 15 percent 600 550 500 to NOK 596.1 million (y-o-y) 450 400 350 • EBIT increased by 43.7 percent to NOK 85.2 300 250 200 million (y-o-y) 150 100 50 o 1 594 employees
Slide 6: We lead the way and build tomorrow's society
Bouvet’s vision We lead the way and build tomorrow’s society
Slide 7: Bouvet's ambition
Bouvet’s ambition We will be the most credible consultancy with the most satisfied employees and clients
Slide 8: Long-term goals
Long-term goals Best workplace Client-oriented and Successful business long-term relations
Slide 9: Operational Review
©) Operational Review
Slide 10: Public and private sector
Public and private sector Public sector Private sector 51,2 % in Q2’19 47.0 % 53.0 % 48,8 % in Q2’19 10
Slide 11: Business sectors Q2 2020
Business sectors Q2 2020 Other Bank & finance Retail Transportation 4.5 % 1.7 % 3.5 % Power supply 5.2 % Service industry 15.5 % 4.8 % Health 2.2 % 3.9 % Industry 4.7 % Info and communication Oil & gas 26.9 % 27.1 % Public admin 11
Slide 12: The four largest sectors
The four largest sectors o Public admin • Increased by 14.8 percent (y-o-y) • Represents 27.1 percent of total revenues in Q2’20 Forsvaret o Oil & gas • Increased by 13.3 percent (y-o-y) • Represents 26.9 percent of total revenues in Q2’20 o Power supply • Increased by 91.8 percent (y-o-y) • Represe
Slide 13: Lerøy Seafood Group has signed an analytics agreement with Bouvet
Lerøy Seafood Group has signed an analytics agreement with Bouvet o Lerøy Seafood Group is a world-leading seafood corporation. The Group´s core business is: • Production of salmon and trout, catches of whitefish, processing, product development, marketing, sale and distribution of seafood. o Bouvet
Slide 14: Statnett has signed digital strategy agreement with Bouvet
Statnett has signed digital strategy agreement with Bouvet o Statnett is to assess the international vendor market for platform services and components, in order to evaluate their technological maturity and conformance with Statnett´s business and security needs. o The work will serve as a foundatio
Slide 15: Flood warning for Sauda
Flood warning for Sauda o In 10 days, Bouvet delivered a data platform that visualised this year's flood for Sauda o Data is collected from NVE, weather services and five IoT sensors placed strategically in Saudafaldene o The client was DigiRogaland including collaboration with Sauda, Stavanger and
Slide 16: The City of Oslo has signed another agreement with Bouvet
The City of Oslo has signed another agreement with Bouvet o The City of Oslo has several IT solutions regarding public housing o Bouvet has been chosen to maintain and further develop the system portfolio o The duration of the agreement is up to 5 years o Estimated value between NOK 20 and 60 millio
Slide 17: Customer and project mix
Customer and project mix Variably priced contracts share of revenues Percentage o Project mix 100% • Variable contracts account for 99.3 percent of 98% total revenues 96% 94% o Customer portfolio 92% 90% • The 10 largest customers represent 45 percent Q2'16 Q2'17 Q2'18 Q2'19 Q2'20 of total revenues
Slide 18: Customer development
Customer development Revenue customer split MNOK o Existing customers* Existing customers* New customers (LTM)** • Accounted for 96.2 percent of revenues in Q2’20 700 o New customers** 600 • Customers won over the past year generated 500 revenues of NOK 22.3 million in Q2’20 400 300 200 100 * Existi
Slide 19: Regional organisation
Regional organisation Trondheim 145 Bouvet Nord ansatte 568 Bouvet Øst ansatte 43 Sesam ansatte 108 Bouvet Bergen Bergen Borlänge ansatte Sandvika Oslo Ørebro Stockholm Haugesund 532 Bouvet Rogaland Sandefjord ansatte Stavanger Skien Arendal Kristiansand 78 Bouvet Sverige ansatte 28 Konsernstab 92 B
Slide 20: Enthusiastic and competent employees
Enthusiastic and competent employees o 1 594 employees at the end of the quarter Number of employees end of quarter • Up 19 from Q1’20 2000 • 139 more employees in the past 12 months 1500 • Average number of employees in the quarter up 1000 10.5 percent from Q2’19 500 0 Q2'16 Q2'17 Q2'18 Q2'19 Q2'20
Slide 21: Financial Review
©) Financial Review 21
Slide 22: Key figures
Key figures Three months ending Six months ending Twelve months ending MNOK 30.06.2020 30.06.2019 Change 30.06.2020 30.06.2019 Change 30.06.2020 30.06.2019 Change Operating revenue 596.1 518.4 15.0 % 1 237.3 1 082.7 14.3 % 2 286.7 2 013.4 13.6 % Operating profit (EBIT) 85.2 59.3 43.7 % 167.8 128.1 3
Slide 23: Revenue
Revenue Revenue split (quarterly figures) MNOK 700 Own consultants o Revenues increased by 15 percent y-o-y 600 Sub-contracted consultants Other 500 • Revenues from own consultants increased by 16.2 400 percent to NOK 499.1 million 300 200 • Revenues from sub-contracted consultants increased by 100
Slide 24: Revenues from own consultants
Revenues from own consultants Revenue per employee (quarterly figures) o Increased 16.2 percent y-o-y TNOK 400 • Positive impact from 10.5 percent increase in average 300 number of employees 200 • Positive impact from 2.3 percent increase in prices for group hourly services 100 • Negative impact fro
Slide 25: Analysis of change in revenues y-o-y
Analysis of change in revenues y-o-y Revenue MNOK 50 44.5 40 30 20 12.2 11.1 11.0 10 7.3 0 -1.8 -2.5 -4.1 -10 No. of employees Sub-contractors Hourly rate Vacation Number of Billing ratio Other effects Other revenue workdays 25
Slide 26: Earnings
Earnings EBIT and EBIT margin MNOK and Percent o Operating profit (EBIT) increased by 43.7 percent to 100 EBIT EBIT margin 16% NOK 85.2 million 14% 80 12% o EBIT margin of 14.3 percent compared to 11.4 60 10% 8% percent in Q2’19 40 6% 4% 20 o Operating expenses increased by 11.3 percent y-o-y 0 2% 0
Slide 27: Change in revenues – effect on EBIT
Change in revenues – effect on EBIT Revenue MNOK 50 Change in Revenue Effect on EBIT 44.5 40 30 20 12.2 11.1 11.0 10 9.0 7.3 7.3 4.8 1.3 1.6 0 -1.2 -1.2 -1.2 -1.8 -2.5 -4.1 -10 No. of employees Sub-contractors Hourly rate Vacation Number of workdays Billing ratio Other effects Other revenue 27
Slide 28: Cash flow
Cash flow Cash flow from operations (per quarter) o Cash flow from operations MNOK 250 • NOK 163.8 million in Q2’20 compared to NOK 32.2 200 million in Q2’19 150 • Reduced trade accounts receivable from NOK 393.2 100 million in Q2’19 to NOK 292.9 in Q2’20 50 0 o Cash flow from investing activities -
Slide 29: Outlook
Outlook 29
Slide 30: Outlook summary
Outlook summary o High global uncertainty due to Covid-19 o Increased competition o Rapid change in society, customer behaviour and business models o High demand for system development o Improved demand for service design and advisory as change management o Increased demand for cloud services Photo:
Slide 31: Appendix
Appendix 31
Slide 32: Shareholders as of 25.08.2020
Shareholders as of 25.08.2020 Shareholders Number of shares % of total VARNER KAPITAL AS 818 000 7,98 % Virtus KAR International Small-Cap 750 682 7,32 % FOLKETRYGDFONDET 708 990 6,92 % STENSHAGEN INVEST AS 586 699 5,72 % VERDIPAPIRFOND ODIN NORDEN 451 215 4,40 % SVERRE FINN HURUM 387 068 3,78 % VER