Slide 1: Interim Presentation Fourth Quarter 2023
INTERIM PRESENTATION FOURTH QUARTER 2023 16 FEBRUARY 2024 Per Gunnar Tronsli, CEO Trude Hole, CFO
Slide 2: Highlights in the quarter
Highlights in the quarter Revenue and EBIT Revenue MNOK 1000 • Operating revenues increased by 13.9 per 800 cent to NOK 969.7 million (y-o-y) 600 • EBIT NOK 106.3 million compared to NOK 400 116.3 million (y-o-y) 200 0 • One less workday (y-o-y) Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 • 5 per cent extra emplo
Slide 3: Operational Review
OPERATIONAL REVIEW a».
Slide 4: Public and private sector
Public and private sector Q4’23 Q4’22 42.3 % 43.0 % 57.7 % 57.0 % Public sector Private sector INTERIM PRESENTATION 4
Slide 5: Business sectors
Business sectors Other Health Retail Industry Info and Transportation communication 3.0 % 1.2 % Service industry 3.9 % 1.7 % 4.2 % 3.8 % 5.2 % 18.7 % Power supply Oil, gas and renewables 17.6 % 40.7 % Public admin INTERIM PRESENTATION 5
Slide 6: Bouvet Innlandet
Bouvet Innlandet • Now an integrated part of the business • All the employees have joined our journey • The acquisition offers opportunities • Well placed to acquire a leading position in Innlandet John Christian Fjellestad, CC BY 3.0 <https://creativecommons.org/licenses/by/3.0>, via Wikimedia Comm
Slide 7: We lead the way and build tomorrow's society
We lead the way and build tomorrow’s society • Generative AI is on everyone’s lips – we show the way • Expertise development and knowledge sharing • We progress together with our clients • One of Microsoft’s priority partners INTERIM PRESENTATION 7
Slide 8: New frame agreement with Innovation Norway
New frame agreement with Innovation Norway • Main supplier of IT services • Through digitalisation, we will help Innovation Norway to reach its goals: • more good innovators • more companies with strong growth • more innovative business clusters • This delivery utilises the full range of our experti
Slide 9: Eress renews its trust in Bouvet
Eress renews its trust in Bouvet • Solution for calculating train energy use • We began developing the solution with Bane NOR in 2005 • Implementing the solution in nine European countries • Entered into a new contract in December 2023, running for up to eight years INTERIM PRESENTATION 8
Slide 10: Norwegian Water Resources and Energy Directorate (NVE)
Norwegian Water Resources and Energy Directorate (NVE) • Responsible for administering Norway’s water and energy resources • Responsible for public administrative duties related to landslip prevention • We have collaborated with the NVE since 2017 on ensuring relevant services and enhancing user exp
Slide 11: LYSE
LYSE • Norwegian energy and telecoms group • Fourth largest generator of renewable hydropower in Norway • Leader for fibreoptic broadband and third-largest Norwegian provider of mobile telephony • Lyse also delivers district heating and cooling, gas and fast charging in Rogaland county • We have sup
Slide 12: A record year for the course business
A record year for the course business • Relevant course programmes adapted to the growing demand for learning about new technologies, methods and opportunities • 7 123 participants spread over almost 600 courses • 24% internal company programmes • Our consultants give regular courses • A number of b
Slide 13: High level of employee satisfaction
High level of employee satisfaction 78 85 JOB SATISFACTION LOYALTY INTERIM PRESENTATION 13
Slide 14: Strong and continuing customer satisfaction
Strong and continuing customer satisfaction 87 82 87 LONG-TERM PARTNER DELIVERABILITY RELEVANT EXPERTISE INTERIM PRESENTATION 14
Slide 15: The four largest sectors
The four largest sectors Oil, gas and renewables • Increased by 21.4 per cent (y-o-y) • Represents 40.7 per cent of total revenues in Q4’23 Power supply • Increased by 40.1 per cent (y-o-y) • Represents 18.7 per cent of total revenues in Q4’23 Public admin • Increased by 11.7 per cent (y-o-y) • Repr
Slide 16: Customer mix
Customer mix Customer portfolio 10 largest customers share of revenues per centage • The 10 largest customers represent 64.3 70% per cent of total revenues – up from 59.6 60% per cent in Q4’22 50% 40% • The 20 largest customers represent 72.9 30% per cent of total revenues – up from 69.3 20% per cen
Slide 17: Customer development
Customer development Existing customers* Revenue customer split MNOK • Accounted for 97.3 per cent of revenues in 1200 Existing customers* New customers (LTM)** Q4’23 1000 New customers** 800 • Customers won over the past year generated revenues of NOK 26.1 million in 600 Q4’23 400 200 0 Q4'22 Q4'23
Slide 18: Local presence
Local presence 209 Bouvet Nord 767 Bouvet Øst 186 Bouvet Bergen 34 Sesam 878 Bouvet Rogaland 39 Group services 121 Bouvet Sør 77 Bouvet Sverige INTERIM PRESENTATION 18
Slide 19: Employee's annual report
Employee’s annual report • Each Bouveteer once again received this slightly different annual report at home for Christmas, with stories from 2023 told by our employees themselves • The report is also provided to students and potential new employees to give them an insight into our culture • It is av
Slide 20: Enthusiastic and highly competent employees
Enthusiastic and highly competent employees 2 311 employees at the end of the quarter Number of employees end of quarter 2500 • Up 42 from Q3’23 2000 • 270 more employees in the past 12 months 1500 1000 • Average number of employees in the 500 0 quarter up 13 per cent from Q4’22 Q4'19 Q4'20 Q4'21 Q4
Slide 21: Financial Review
FINANCIAL REVIEW |
Slide 22: Key figures
Key figures Three months ending Twelve months ending MNOK 31.12.2023 31.12.2022 Change 31.12.2023 31.12.2022 Change Operating revenue 969.7 851.7 13.9 % 3 525.8 3 085.5 14.3 % Operating profit (EBIT) 106.3 116.3 -8.6 % 407.0 401.7 1.3 % EBIT margin 11.0 % 13.7 % 11.5 % 13.0 % Ordinary profit before
Slide 23: Revenue
Revenue Revenues increased by 13.9 per cent y-o-y Revenue split (quarterly figures) MNOK Own consultants Sub-contracted consultants • Revenues from own consultants increased 1200 Other 1000 by 15.3 per cent to NOK 856.5 million 800 600 400 • Revenues from sub-contracted consultants 200 0 increased b
Slide 24: Revenues from own consultants
Revenues from own consultants Increased 15.3 per cent y-o-y Revenue per employee (quarterly figures) TNOK • Positive impact from 13 per cent increase in 500 400 average number of employees 300 200 • Positive impact from 5.2 per cent increase 100 0 in price for group hourly services Q4'19 Q4'20 Q4'21
Slide 25: Analysis of change in revenues y-o-y
Analysis of change in revenues y-o-y Revenue MNOK 120 103.8 100 80 60 41.5 40 20 6.6 6.1 0 -2.4 -20 -12.4 -25.2 -40 No. of employees Hourly rate Sub-contractors Other effects Other income No. of workdays Billing ratio INTERIM PRESENTATION 25
Slide 26: Earnings
Earnings • Operating profit (EBIT) decreased by EBIT and EBIT margin 8.6 per cent to NOK 106.3 million MNOK and per cent 150 EBIT EBIT margin 16% 14% • EBIT margin of 11 per cent compared to 100 12% 10% 13.7 per cent in Q4’22 8% 6% 50 4% • Operating expenses increased by 17.4 per 0 2% 0% cent y-o-y
Slide 27: Other operating expenses
Other operating expenses Other OpEx split (quarterly figures) Increased 5.1 per cent y-o-y MNOK Travel, courses, recruitments and social events Other • Travel, courses, recruitments and social 100 80 events increased by 3.5 per cent to 60 NOK 34.7 million 40 20 • Other costs increased by 6.3 per cen
Slide 28: Change in revenues – effect on EBIT
Change in revenues – effect on EBIT MNOK 40 Effect on EBIT 30.6 30 28.5 20 10 0.5 1.4 0 -0.6 -10 -9.2 -20 -18.6 -30 No. of employees Hourly rate Sub-contractors Other effects Other income No. of workdays Billing ratio INTERIM PRESENTATION 28
Slide 29: Cash flow
Cash flow Cash flow from operations Cash flow from operations (per quarter) MNOK • NOK 389 million in Q4’23 compared to NOK 500 178.4 million in Q4’22 400 300 200 Cash flow last 12 months 100 0 • Operational cash flow over the last 12 -100 Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 -200 months was NOK 528.8 mill
Slide 30: Outlook
OUTLOOK
Slide 31: Outlook summary
Outlook summary • Strong demand in sectors where we are present • Strongly positioned for work on AI • Security and quality • Clients seeking strategic partnerships • Increased competition • Good access to talented people INTERIM PRESENTATION 31
Slide 32: Appendix
APPENDIX Interim presentation Fourth quarter 2023
Slide 33: Shareholders as of 16.02.2024
Shareholders as of 16.02.2024 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