Bouvet Asa · OSL:BOUV

Bouvet Asa — Q3 2018 Earnings Presentation

25 slides from Bouvet Asa's earnings presentation, Nov 14, 2018

  1. Slide 1: Interim presentation Third quarter 2018

    Interim presentation Third quarter 2018 Sverre Hurum, CEO Erik Stubø, CFO 14 November 2018

  2. Slide 2: Highlights in the quarter

    Highlights in the quarter Revenue and number of employees MNOK and number o Revenue and EBIT 500 450 • Operating revenues increased by 14.9 percent 400 350 to NOK 395.4 million (y‐o‐y) 300 250 • EBIT increased by 17.9 percent to NOK 20.1 200 150 million (y‐o‐y) 100 50 o 1 342 employees 0 Q3'13 Q3'14

  3. Slide 3: Operational Review

    ©) Operational Review

  4. Slide 4: Public and private sector

    Public and private sector Public sector Private sector 49,7 % in Q3’17 51.4 % 50,3 % in Q3’17 48.6 % 4

  5. Slide 5: Business sectors Q3 2018

    Business sectors Q3 2018 Other Bank & finance Retail 2.4 % 4.2 % Power supply 5.9 % Transportation 10.0 % 6.8 % Health Service industry 2.3 % 5.3 % Industry 4.9 % 4.9 % Info and communication 25.8 % Oil & gas 27.5 % Public admin 5

  6. Slide 6: Sectors with high increase in revenue

    Forsvaret Sectors with high increase in revenue o Public admin • Increased by 17.2 percent (y‐o‐y) • Represents 27.5 percent of total revenues in Q3’18 o Oil & gas • Increased by 35.5 percent (y‐o‐y) • Represents 25.8 percent of total revenues in Q3’18 o Power supply • Increased by 28.0 percent (y‐o

  7. Slide 7: Digital solutions to support offshore operations

    Digital solutions to support offshore operations o Equinor´s Integrated Operations Centre (IOC) has trusted Bouvet as a partner o IOC supports offshore operations remote and the objective is to: • Reduce emissions • Increase the efficiency, safety and potential of production o Duration at least one

  8. Slide 8: New digital solutions for the Swedish government

    New digital solutions for the Swedish government o Bouvet is one of six suppliers to develop the future digital solutions for public‐ service within health, social care and education o Duration 4 years 8

  9. Slide 9: Hydro Traffic Management System (HTMS)

    Hydro Traffic Management System (HTMS) o Delivered a pilot study for a traffic system with real‐time positioning to optimise use of manually and automated vehicles Photo: Hydro 9 Photo: Hydro

  10. Slide 10: Customer and project mix

    Customer and project mix Variably priced contracts share of revenues Percentage o Project mix 100% • Variable contracts account for 97.5 percent of 90% total revenues 80% 70% o Customer portfolio 60% 50% • The 10 largest customers represent 38.8 percent Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 of total r

  11. Slide 11: Customer development

    Customer development Revenue customer split MNOK o Existing customers* Existing customers* New customers (LTM)** • Accounted for 94.2 percent of revenues in Q3’18 450 400 o New customers** 350 • Customers won over the past year generated 300 revenues of NOK 23.0 million in Q3’18 250 200 150 100 50 *

  12. Slide 12: Regional organisation

    Regional organisation Trondheim 117 Bouvet Nord ansatte 526 Bouvet Øst ansatte 29 Sesam ansatte 85 Bouvet Bergen Bergen Borlänge ansatte Sandvika Oslo Ørebro Stockholm Haugesund 426 Bouvet Rogaland Sandefjord ansatte Stavanger Skien Arendal Kristiansand 72 Bouvet Sverige ansatte 23 Konsernstab 64 Bo

  13. Slide 13: Enthusiastic and competent employees

    Enthusiastic and competent employees o 1 342 employees at the end of the quarter Number of employees end of quarter • Up 38 from Q2’18 1500 • 131 more employees in the past 12 months 1000 • Average number of employees in the quarter up 500 11.3 percent from Q3’17 0 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'1

  14. Slide 14: ss i x +

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  15. Slide 15: Financial Review

    ©) Financial Review 15

  16. Slide 16: Key figures

    Key figures Three months ending Twelve months ending MNOK 30.09.2018 30.09.2017 Change 30.09.2018 30.09.2017 Change Operating revenue 395.4 344.2 14.9 % 1 769.7 1 531.2 15.6 % Operating profit (EBIT) 20.1 17.1 17.9 % 175.5 127.9 37.2 % EBIT margin 5.1 % 5.0 % 9.9 % 8.4 % Ordinary profit before tax 2

  17. Slide 17: Revenue

    Revenue Revenue split (quarterly figures) MNOK Own consultants o Revenues increased by 14.9 percent y‐o‐y 500 Sub‐contracted consultants 400 Other • Revenues from own consultants increased by 16.2 300 percent to NOK 331.3 million 200 • Revenues from sub‐contracted consultants increased by 100 9.1 pe

  18. Slide 18: Revenues from own consultants

    Revenues from own consultants Revenue per employee (quarterly figures) o Increased 16.2 percent y‐o‐y TNOK 350 • Positive impact from increase in billing ratio by 1.5 300 percentage points 250 200 • Positive impact from 11.3 percent increase in average 150 100 number of employees 50 • Positive impac

  19. Slide 19: Analysis of change in revenues y-o-y

    Analysis of change in revenues y‐o‐y Revenue MNOK 40 35 33.6 30 25 20 15 10.6 10 6.4 5.7 5.0 5 0 ‐5 ‐10 ‐10.2 ‐15 No. of employees Hourly rate Sick leave, vacation, Billing ratio Sub‐contractors & other Progress in projects overtime etc revenue 19

  20. Slide 20: Change in revenues – effect on EBIT

    Change in revenues – effect on EBIT Revenue MNOK 40 Change in Revenue Effect on EBIT 35 33.6 30 25 20 15 10.6 10 8.2 7.9 6.4 5.7 5.0 5 3.4 4.2 0.4 0 ‐5 ‐10 ‐7.6 ‐10.2 ‐15 No. of employees Hourly rate Sick leave, vacation, Billing ratio Sub‐contractors & other Progress in projects overtime etc revenu

  21. Slide 21: Earnings

    Earnings EBIT and EBIT margin MNOK and Percent o Operating profit (EBIT) up by 17.9 percent to NOK 60 EBIT EBIT margin 15.0% 20.1 million 50 40 10.0% o EBIT margin of 5.1 percent compared to 5.0 percent 30 in Q3’17 20 5.0% 10 o Operating expenses increased by 14.7 percent 0 0.0% compared to Q3’17 Q3

  22. Slide 22: Cash flow

    Cash flow Cash flow from operations (per quarter) o Cash flow from operations MNOK 200 • Negative NOK 14.1 million in Q3’18 compared to negative 150 NOK 2.5 million in Q3’17 100 o Last 12 months 50 • Operational cash flow over the last 12 months was NOK 0 161.6 million Q3'13 Q3'14 Q3'15 Q3'16 Q3'17

  23. Slide 23: Outlook

    Outlook 23

  24. Slide 24: Outlook

    Outlook o High demand o Decreased demand for large projects o Increased demand for cross‐functional teams o Increased demand for broad range of services o Increased demand for platform, IoT, security and cloud competence o Clients will increase their digital skills o Too low capacity in the IT secto

  25. Slide 25: Shareholders as of 14.11.2018

    Shareholders as of 14.11.2018 Shareholders Number of shares % of total VARNER KAPITAL AS 1 070 000 10,44 % VPF NORDEA AVKASTNING 985 331 9,61 % STENSHAGEN INVEST AS 736 699 7,19 % VIRTUS KAR INTERNATIONAL 517 940 5,05 % HURUM SVERRE FINN 508 366 4,96 % MP PENSJON KP 504 004 4,92 % VEVLEN GÅRD AS 453

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