Bouvet Asa · OSL:BOUV

Bouvet Asa — Q3 2017 Earnings Presentation

27 slides from Bouvet Asa's earnings presentation, Nov 9, 2017

  1. Slide 1: Interim presentation Third quarter 2017

    Interim presentation Third quarter 2017 Sverre Hurum, CEO Erik Stubø, CFO 9 November 2017

  2. Slide 2: Finansavisen 6 November 2017 Finansavisen 7 November 2017

    Finansavisen 6 November 2017 Finansavisen 7 November 2017 2

  3. Slide 3: Highlights in the quarter

    Highlights in the quarter Revenue and number of employees MNOK and number o Revenue and EBIT 450 400 • Operating revenues increased by 22.8 percent 350 to NOK 344.2 million (y‐o‐y) 300 250 • EBIT increased by 41.0 percent to NOK 17.1 200 150 million (y‐o‐y) 100 50 o 1 211 employees 0 Q3'12 Q3'13 Q3'

  4. Slide 4: Operational Review

    ©) Operational Review

  5. Slide 5: Public and private sector

    Public and private sector Public sector Private sector 48.7 % 48,3 % in Q3’16 51,7 % in Q3’16 51.3 % 5

  6. Slide 6: Business sectors Q3 2017

    Business sectors Q3 2017 Other Bank & finance Retail 2.4 % 4.1 % Power supply 6.3 % 9.0 % Transportation Health 10.2 % 2.6 % Industry 5.1 % Service industry 6.4 % 5.7 % Info and communication 22.1 % Oil & gas 26.2 % Public admin 6

  7. Slide 7: 20 largest new customers (y-o-y)

    20 largest new customers (y‐o‐y) 7

  8. Slide 8: Sectors with high increase in revenue

    Sectors with high increase in revenue o Public admin • Increased by 29.8 percent (y‐o‐y) • Represents 26.2 percent of total revenues in Q3’17 o Oil & gas • Increased by 21.3 percent (y‐o‐y) • Represents 22.1 percent of total revenues in Q3’17 o Transportation • Increased by 30.8 percent (y‐o‐y) • Re

  9. Slide 9: Fifty - a common platform for energy management

    Fifty ‐ a common platform for energy management o Fifty is a system for balancing the production and the reserves o Developed for Svenska kraftnät and Statnett o Deployed in operation during Q3 o Bouvet delivers three development teams o 4 +1 +1 year contract 9 Foto: Statnett

  10. Slide 10: The Norwegian Armed Forces

    The Norwegian Armed Forces o In cooperation with the Norwegian Armed Forces, Bouvet contributes to the exchange of information and integration between F‐35 ALIS and the Norwegian Armed Forces systems. 10

  11. Slide 11: A platform for collaboration and knowledge sharing

    A platform for collaboration and knowledge sharing o Finansinspektionen is going to develop a new information, communication and collaboration platform o The objective is to: • Increase competence sharing • Improve collaboration and project execution across the organisation • Increase internal effic

  12. Slide 12: Connected health devices violate users privacy

    Connected health devices violate users privacy o On behalf of the Norwegian Consumer Council, Bouvet has carried out the technical part of the test 12

  13. Slide 13: Customer and project mix

    Customer and project mix Variably priced contracts share of revenues Percentage o Project mix 100% • Variable contracts account for 96.8 percent of 90% total revenues 80% 70% o Customer portfolio 60% 50% • The 10 largest customers represent 36.4 percent Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 of total r

  14. Slide 14: Customer development

    Customer development Revenue customer split MNOK o Existing customers* Existing customers* New customers (LTM)** • Accounted for 92.0 percent of revenues in Q3’17 400 o New customers** 350 300 • Customers won over the past year generated revenues of NOK 27.9 million in Q3’17 250 200 150 100 50 * Exi

  15. Slide 15: Regional organisation

    Regional organisation Trondheim 102 Bouvet Nord ansatte 480 Bouvet Øst ansatte 27 Sesam ansatte 71 Bouvet Bergen Bergen Borlänge ansatte Sandvika Oslo Ørebro Stockholm Haugesund 369 Bouvet Rogaland Sandefjord ansatte Stavanger Skien Arendal Kristiansand 83 Bouvet Sverige ansatte 21 Konsernstab 58 Bo

  16. Slide 16: Enthusiastic and competent employees

    Enthusiastic and competent employees o 1 211 employees at the end of the quarter Number of employees end of quarter • Up 45 from Q2’17 1400 1200 • 166 more employees in the past 12 months 1000 800 • Average number of employees in the quarter up 600 15.0 percent from Q3’16 400 200 0 Q3'12 Q3'13 Q3'14

  17. Slide 17: Financial Review

    ©) Financial Review 17

  18. Slide 18: Key figures

    Key figures Three months ending Twelve months ending MNOK 30.09.2017 30.09.2016 Change 30.09.2017 30.09.2016 Change Operating revenue 344.2 280.4 22.8 % 1 531.2 1 281.6 19.5 % Operating profit (EBIT) 17.1 12.1 41.0 % 127.9 99.5 28.6 % EBIT margin 5.0 % 4.3 % 8.4 % 7.8 % Ordinary profit before tax 17

  19. Slide 19: Revenue

    Revenue Revenue split (quarterly figures) MNOK 500 Own consultants o Revenues increased by 22.8 percent y‐o‐y Sub‐contracted consultants 400 Other • Revenues from own consultants increased by 21.5 300 percent to NOK 285.2 million 200 • Revenues from sub‐contracted consultants increased by 100 32.2 p

  20. Slide 20: Revenues from own consultants

    Revenues from own consultants Revenue per employee (quarterly figures) o Increased 21.5 percent y‐o‐y TNOK 350 • Positive impact from increase in billing ratio by 2.0 300 percentage points 250 200 • Positive impact from 15.0 percent increase in average 150 100 number of employees 50 0 • Positive imp

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

    Analysis of change in revenues y‐o‐y Revenue MNOK 40 35 30 25 20 35.4 15 10 5 11.4 6.7 6.2 4.7 2.8 0 0.2 ‐3.5 ‐5 ‐10 No. of employees Sub‐contractors Progress in projects Billing ratio Hourly rate Maternity leave Other effects No. of work days 21

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

    Change in revenues – effect on EBIT Revenue MNOK 40 Change in Revenue Effect on EBIT 35 30 25 20 35.4 15 10 5 11.4 6.9 6.7 6.2 1.2 0.8 5.1 4.7 4.7 3.5 2.8 0 0.2 ‐0.1 ‐3.5 ‐2.7 ‐5 ‐10 No. of employees Sub‐contractors Progress in Billing ratio Hourly rate Maternity leave Other effects No. of work days

  23. Slide 23: Earnings

    Earnings EBIT and EBIT margin MNOK and Percent o Operating profit increased y‐o‐y in Q3’17 50 EBIT EBIT margin 15% • EBIT margin of 5.0 percent compared to 4.3 percent in 40 Q3’16 30 10% 20 o Operating expenses increased by 22.0 percent 5% 10 compared to Q3’16 0 0% Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'1

  24. Slide 24: Cash flow

    Cash flow Cash flow from operations (per quarter) o Cash flow from operations MNOK 150 • Negative NOK 2.5 million in Q3’17 compared to negative 100 NOK 13.7 million in Q3’16 50 o Last 12 months 0 • Operational cash flow over the last 12 months was NOK ‐50 Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 108.9 mi

  25. Slide 25: Outlook

    Outlook 25

  26. Slide 26: Outlook

    Outlook o Recruiting in a tough and challenging market o Rapid adoption of artificial intelligence and machine learning in every sector o A good market

  27. Slide 27: Shareholders as of 08.11.2017

    Shareholders as of 08.11.2017 Investor Number of shares % of total VARNER KAPITAL AS 1 070 000 10,44 % VPF NORDEA AVKASTNING 943 020 9,20 % STENSHAGEN INVEST AS 770 402 7,52 % PROTECTOR FORSIKRING ASA 720 000 7,02 % HURUM SVERRE FINN 507 873 4,95 % MP PENSJON PK 504 904 4,93 % VEVLEN GÅRD AS 420 000

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