Bouvet Asa · OSL:BOUV
Bouvet Asa — Q3 2020 Earnings Presentation
31 slides from Bouvet Asa's earnings presentation, Nov 10, 2020
Slide 1: Interim presentation Third quarter 2020
Interim presentation Third quarter 2020 10 November 2020 Sverre Hurum, CEO Erik Stubø, CFO
Slide 2: 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 12.6 percent 600 550 to NOK 518.9 million (y‐o‐y) 500 450 400 • EBIT increased by 69.6 percent to NOK 55.2 350 300 million (y‐o‐y) 250 200 150 100 o 1 650 employees
Slide 3: Bouvet's vision
logo Bouvet’s vision We lead the way and build tomorrow’s society
Slide 4: Bouvet's ambition
logo Bouvet’s ambition We will be the most credible consultancy with the most satisfied employees and clients
Slide 5: Long-term goals
Long‐term goals Best workplace Client‐oriented and Successful business long‐term relations
Slide 6: Our services
Security Advisory sustainability and digitalisation Scrum master Process management Program management Our services Enterprise architecture Multi‐channel strategy Innovation Business intelligence IT architecture Product strategy DevOps Test management Project management Agile Design thinking Informa
Slide 7: Operational Review
©) Operational Review
Slide 8: Public and private sector
Public and private sector Public sector Q3'20 Q3'19 Private sector 45.5 % 54.5 % 52.3 % 47.7 % 8
Slide 9: Business sectors Q3 2020
Business sectors Q3 2020 Other Bank & finance Retail Transportation 4.0 % 2.0 % 3.4 % Power supply 5.1 % Service industry 16.9 % 4.4 % Health 2.0 % 4.3 % Industry 26.5 % 5.1 % Oil & gas Info and communication 26.3 % Public admin 9
Slide 10: The four largest sectors
The four largest sectors o Oil & gas • Increased by 1.1 percent (y‐o‐y) • Represents 26.5 percent of total revenues in Q3’20 Forsvaret o Public admin • Increased by 18.1 percent (y‐o‐y) • Represents 26.3 percent of total revenues in Q3’20 o Power supply • Increased by 106.5 percent (y‐o‐y) • Represe
Slide 11: Technology partners
Technology partners Content management systems Industry Steering systems Identity and Access management Robot technology Industrial Control Systems Industrial software Platforms ERP Artificial intelligence Personalising webpages
Slide 12: Bouvet in partnership with Microsoft for HoloLens in Norway
Bouvet in partnership with Microsoft for HoloLens in Norway o Bouvet has focused on Mixed Reality since 2015 and has positioned the company at the forefront of this technology. o We have successfully delivered projects to multiple countries, such as Italy, USA, UK and Australia o Launched Lens by Bo
Slide 13: User-centered product development and innovation
User‐centered product development and innovation o Easee has the goal of delivering the best user experience for car charging by focusing on sustainability, smartness and security o Bouvet´s subsidiary Olavstoppen develops the steering app and in collaboration with Easee continuously launches new fe
Slide 14: Sustainable business development
Sustainable business development o Innovation Norway conducts a program for the tourism industry with the aim to assist the sector to develop more sustainable business models o Bouvet´s deliveries: • Ensuring digital implementation of the program • Advising the participants in mapping the current bu
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 98.9 percent of 98% total revenues 96% 94% o Customer portfolio 92% 90% • The 10 largest customers represent 47.2 percent Q3'16 Q3'17 Q3'18 Q3,19 Q3'20 of total revenue
Slide 16: Customer development
Customer development Revenue customer split MNOK o Existing customers* Existing customers* New customers (LTM)** • Accounted for 96.3 percent of revenues in Q3’20 600 o New customers** 500 • Customers won over the past year generated 400 revenues of NOK 19.1 million in Q3’20 300 200 100 * Existing c
Slide 17: Regional organisation
Regional organisation Trondheim 147 Bouvet Nord ansatte 607 Bouvet Øst ansatte 42 Sesam ansatte 124 Bouvet Bergen Bergen Borlänge ansatte Oslo Ørebro Drammen Sandvika Stockholm Haugesund 538 Bouvet Rogaland Sandefjord ansatte Stavanger Skien Arendal Kristiansand 74 Bouvet Sverige ansatte 29 Konserns
Slide 18: Enthusiastic and competent employees
Enthusiastic and competent employees o 1 650 employees at the end of the quarter Number of employees end of quarter • Up 56 from Q2’20 2000 • 105 more employees in the past 12 months 1500 • Average number of employees in the quarter up 1000 7.6 percent from Q3’19 500 0 Q3'16 Q3'17 Q3'18 Q3'19 Q3'20
Slide 19: Financial Review
©) Financial Review 19
Slide 20: Key figures
Key figures Three months ending Nine months ending Twelve months ending MNOK 30.09.2020 30.09.2019 Change 30.09.2020 30.09.2019 Change 30.09.2020 30.09.2019 Change Operating revenue 518.9 460.9 12.6 % 1 756.2 1 543.5 13.8 % 2 344.8 2 078.9 12.8 % Operating profit (EBIT) 55.2 32.6 69.6 % 223.0 160.7
Slide 21: Revenue
Revenue Revenue split (quarterly figures) MNOK 700 Own consultants o Revenues increased by 12.6 percent y‐o‐y Sub‐contracted consultants 600 Other 500 • Revenues from own consultants increased by 11.9 400 percent to NOK 439.4 million 300 200 • Revenues from sub‐contracted consultants increased by 10
Slide 22: Revenues from own consultants
Revenues from own consultants Revenue per employee (quarterly figures) o Increased 11.9 percent y‐o‐y TNOK 400 • Positive impact from 7.6 percent increase in average 300 number of employees 200 • Positive impact from 0.8 percent increase in prices for group hourly services 100 0 • Positive impact fr
Slide 23: Analysis of change in revenues y-o-y
Analysis of change in revenues y‐o‐y Revenue MNOK 50 42.4 40 30 20 10 7.0 6.2 4.3 4.2 0.7 0 ‐6.9 ‐10 No. of employees Sub‐contractors Billing ratio Hourly rate Other revenue Other effects Vacation 23
Slide 24: Earnings
Earnings EBIT and EBIT margin MNOK and Percent o Operating profit (EBIT) increased by 69.6 percent to 100 EBIT EBIT margin 16% NOK 55.2 million 14% 80 12% o EBIT margin of 10.6 percent compared to 7.1 percent 60 10% 8% in Q3’19 40 6% 4% 20 o Operating expenses increased by 8.3 percent y‐o‐y 0 2% 0%
Slide 25: Change in revenues – effect on EBIT
Change in revenues – effect on EBIT Revenue MNOK 50 Change in Revenue Effect on EBIT 42.4 40 30 20 10 7.7 7.0 6.2 4.1 4.3 4.2 2.9 0.5 1.1 0.7 0.1 0 ‐1.5 ‐10 ‐6.9 No. of employees Sub‐contractors Billing ratio Hourly rate Other revenue Other effects Vacation 25
Slide 26: Cash flow
Cash flow Cash flow from operations (per quarter) o Cash flow from operations MNOK 250 • NOK 41.3 million in Q3’20 compared to NOK 10.8 million 200 in Q3’19 150 o Cash flow last 12 months 100 50 • Operational cash flow over the last 12 months was NOK 0 482.0 million ‐50 Q3'16 Q3'17 Q3'18 Q3'19 Q3'20
Slide 27: Outlook
Outlook 27
Slide 28: Outlook summary
Outlook summary o Focus on digital transformation: • High demand for advisory and user‐centered development that creates value and develop organisations in a sustainable direction • High demand for system development • Improved demand for service design and advisory as change management • High deman
Slide 29: Outlook summary
Outlook summary o New opportunities due to rapid change in society, customer behaviour and business models o High global uncertainty due to Covid‐19 o Increased competition and price pressure Photo: CDC, Alissa Eckert 29
Slide 30: Appendix
Appendix 30
Slide 31: Shareholders as of 10.11.2020
Shareholders as of 10.11.2020 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