Bouvet Asa · OSL:BOUV
Bouvet Asa — Q4 2016 Earnings Presentation
29 slides from Bouvet Asa's earnings presentation, Feb 17, 2017
Slide 1: Interim presentation Fourth quarter 2016
Interim presentation Fourth quarter 2016 Sverre Hurum. CEO Erik Stubø. CFO 17 February 2017
Slide 2: 17 February 2017 Interim presentation 4th quarter 2016
2 17 February 2017 Interim presentation 4th quarter 2016
Slide 3: Bouvet in the media
Bergen kommune 12. januar 2017 Digi.no 9. februar 2017 nrk.no 11. januar 2017 Distriktsnyhetene Vestlandsrevyen NRK 11. januar 2017 3 17 February 2017 Interim presentation 4th quarter 2016
Slide 4: AI and machine learning
AI and machine learning • Artificial intelligence (AI) will play a more important role in digitalisation • It is noted a marked shift towards interest in, and the need for, expertise on machine dn.no learning and AI • Bouvet enhance service development to meet the market demand dn.no 4 17 February 2
Slide 5: Highlights in the quarter
Highlights in the quarter • Revenue and EBIT Revenue and number of employees MNOK and number – Operating revenues increased 450 by 14.8 percent to NOK 382.3 400 350 million (y-o-y) 300 – EBIT increased by 26.0 percent 250 200 to NOK 32.9 million (y-o-y) 150 100 • 1090 employees 50 0 – Up 45 from Q3’
Slide 6: Operational Review
Operational Review
Slide 7: Increase in public sector
Increase in public sector Public sector Privat sector 46,7 % in Q4’15 47,6 % 52,4 % 53,3 % in Q4’15 7 17 February 2017 Interim presentation 4th quarter 2016
Slide 8: Business sectors Q4 2016
Business sectors Q4 2016 Other Bank & finance Retail 3,9 % 4,3 % Power supply 6,6 % 10,0 % Transportation Health 10,7 % 3,7 % Industry 4,1 % Service industry Info and communication 6,3 % 4,4 % 19,3 % Oil & gas 26,6 % Public admin 8 17 February 2017 Interim presentation 4th quarter 2016
Slide 9: Sectors with high increase in revenue
Sectors with high increase in revenue • Public admin – Increased by 27.3 percent (y-o-y) – Represents 26.6 percent of total revenues in Q4’16 • Power supply – Increased by 46.3 percent (y-o-y) – Represents 10.0 percent of total revenues in Q4’16 • Transportation – Increased by 19.0 percent (y-o-y) –
Slide 10: Signed national frame agreement
Signed national frame agreement • Important national framework agreement with Sykehusinnkjøp • Includes a broad range of Bouvets services • Duration up to 4 years Finansavisen 5. desember 2017 10 17 February 2017 Interim presentation 4th quarter 2016
Slide 11: Less "cracked eggs" by use of Big Data
Less “cracked eggs” by use of Big Data • Digitalisation of egg control for Nortura making new data sets available to improve egg production • Bouvet developed the egg control system and delivered Big Data services 11 17 February 2017 Interim presentation 4th quarter 2016
Slide 12: Assisted Sparebanken Vest going digital
Assisted Sparebanken Vest going digital • Sparebanken Vest digitalise to meet disruptive changes by: – Optimizing customer experience – Automating processes – Upgrading technical platforms to meet future needs • Bouvet is delivering – Development services Bergens Tidende – Testing services 12
Slide 13: Digitalisation of BarentsWatch services
Digitalisation of BarentsWatch services • Development and maintenance of information services for utilization of resources in the sea • The objective is to: – Increase safety – Reduce conflicts – Increased health for farmed fish – Increased efficiency for fishers – Increased collaboration between pu
Slide 14: Customer and project mix
Customer and project mix • Project mix Variably priced contracts share of revenues Percentage – Variable contracts account for 100% 95.8 percent of total revenues 90% 80% • Client portfolio 70% 60% – The 10 largest customers 50% represent 35.0 percent of Q4'11 Q4'12 Q4'13 Q4'14 Q4'15 Q4'16 total rev
Slide 15: Client development
Client development • Existing clients* Revenue customer split MNOK – Accounted for 87.8 percent of Existing customers* New customers (LTM)** revenues in Q4’16 450 400 • New customers** 350 – Customers won over the past 300 year generated revenues of NOK 46.3 million in Q4’16 250 200 150 100 50 * Exi
Slide 16: Regional organisation
Regional organisation 88 65 22 Trondheim 430 Bergen Sandvika Ørebro Stockholm Haugesund Oslo 321 Sandefjord Stavanger Skien Group Kristiansand Arendal 89 management and staff: 20 Malmø 55 16 17 February 2017 Interim presentation 4th quarter 2016
Slide 17: Enthusiastic and competent employees
Enthusiastic and competent employees • 1 090 employees at the end of Number of employees end of quarter the third quarter 1200 – Up 45 from Q3’16 1000 800 – 54 more employees in the 600 past 12 months 400 200 – Average number of 0 Q4'11 Q4'12 Q4'13 Q4'14 Q4'15 Q4'16 employees in the quarter up 5.2 p
Slide 18: Strong focus on recruitment
Strong focus on recruitment • Enhance employer branding in all regions • Presence at universities and conferences 18 17 February 2017 Interim presentation 4th quarter 2016
Slide 19: Financial Review
Financial Review
Slide 20: Key figures
Key figures Three months ending Twelve months ending MNOK 31.12.2016 31.12.2015 Change 31.12.2016 31.12.2015 Change Operating revenue 382.3 333.0 14.8 % 1 330.8 1 232.5 8.0 % Operating profit (EBIT) 32.9 26.1 26.0 % 106.3 99.4 7.0 % EBIT margin 8.6 % 7.8 % 8.0 % 8.1 % Ordinary profit before tax 33.2
Slide 21: Revenue
Revenue • Revenues increased by 14.8 Revenue split (quarterly figures) MNOK percent y-o-y Own consultants 500 Sub-contracted consultants – Revenues from own consultants 400 Other increased by 11.2 percent to NOK 300 310.9 million 200 – Revenues from sub-contracted 100 0 consultants increased by 67.7
Slide 22: Revenues from own consultants
Revenues from own consultants • Increased 11.2 percent y-o-y Revenue per employee (quarterly figures) TNOK – Positive impact from increase in 300 billing ratio by 1.9 percentage 250 points 200 150 – Positive impact from 5.2 percent 100 increase in average number of 50 employees 0 Q4'11 Q4'12 Q4'13 Q
Slide 23: Analysis of change in revenues y-o-y
Analysis of change in revenues y-o-y Revenue MNOK 25 20 15 22,4 10 16,9 11,7 5 5,0 2,5 0 -2,6 -2,7 -4,0 -5 -10 Sub-contractors No. of employees Billing ratio No. of work days Hourly rate Progress in Sick leave Other projects 23 17 February 2017 Interim presentation 4th quarter 2016
Slide 24: Change in revenues – effect on EBIT
Change in revenues – effect on EBIT Revenue MNOK 25 Change in Revenue Effect on EBIT 20 15 22,4 10 16,9 11,7 5 9,0 5,0 3,9 1,8 2,6 2,5 1,9 0 -2,6 -2,0 -2,7 -1,8 -1,0 -4,0 -5 -10 Sub-contractors No. of employees Billing ratio No. of work days Hourly rate Progress in projects Sick leave Other 24 17 Fe
Slide 25: Earnings
Earnings • Operating profit increased y-o-y in EBIT and EBIT margin MNOK and Percent Q4’16 50 EBIT EBIT margin 15% – EBIT margin of 8.6 percent 40 compared to 7.8 percent in Q4’15 30 10% 20 • Operating expenses increased by 5% 10 13.8 percent compared to Q4’15 0 0% Q4'11 Q4'12 Q4'13 Q4'14 Q4'15 Q4'1
Slide 26: Cash flow
Cash flow • Cash flow from operations Cash flow from operations (per quarter) MNOK – NOK 118.4 million in Q4’16 150 compared to NOK 99.8 million in 100 Q4’15 50 • Rolling 12 months 0 – Operational cash flow over the last -50 12 months was NOK 113.5 million Q4'11 Q4'12 Q4'13 Q4'14 Q4'15 Q4'16 Cash fl
Slide 27: Outlook
Outlook
Slide 28: Outlook
Outlook • Industry shift from ”offshoring” to “homeshoring” • Increase in demand and interest of AI, Big Data, cloud and software robots • The high pace of digitalisation continues 28 17 February 2017 Interim presentation 4th quarter 2016
Slide 29: Shareholders as of 16.02.2017
Shareholders as of 16.02.2017 Investor Number of shares % of total VARNER KAPITAL AS 1 070 000 10,44 % STENSHAGEN INVEST AS 925 402 9,03 % VPF NORDEA AVKASTNING 778 120 7,59 % PROTECTOR FORSIKRING ASA 700 000 6,83 % MP PENSJON PK 569 904 5,56 % HURUM SVERRE FINN 507 873 4,95 % VEVLEN GÅRD AS 420 000