Slide 1: Interim presentation Third quarter 2016
Interim presentation Third quarter 2016 Sverre Hurum. CEO Erik Stubø. CFO 10 November 2016
Slide 2: 10 November 2016 Interim presentation 3rd quarter 2016
2 10 November 2016 Interim presentation 3rd quarter 2016
Slide 3: Dagens Næringsliv 22 October 2016
Dagens Næringsliv 22 October 2016 3 10 November 2016 Interim presentation 3rd quarter 2016
Slide 4: Focus on recruiting from universities
Focus on recruiting from universities • Present at: – NTNU, Norwegian University of Science and Technology – University of Bergen – Bergen University College – University of Oslo 4 10 November 2016 Interim presentation 3rd quarter 2016
Slide 5: Highlights in the quarter
Highlights in the quarter • Revenue and EBIT Revenue and number of employees MNOK and number – Operating revenues increased 400 by 9.2 percent to NOK 280.4 350 million (y-o-y) 300 250 – EBIT increased by 82.5 percent 200 to NOK 12.1 million (y-o-y) 150 100 • 1045 employees 50 0 – Up 12 from Q2’16 Q3
Slide 6: Operational Review
Operational Review
Slide 7: Increase in public sector
Increase in public sector Public sector Privat sector 44,3 % in Q3’15 50,1 % 49,9 % 55,7 % in Q3’15 7 10 November 2016 Interim presentation 3rd quarter 2016
Slide 8: Business sectors Q3 2016
Business sectors Q3 2016 Other Bank & finance Retail 2,9 % 4,1 % Power supply 6,7 % 10,3 % Health Transportation 9,8 % 4,9 % Industry Service industry 4,2 % 5,7 % Info and communication 4,9 % 22,5 % Oil & gas 24,0 % Public admin 8 10 November 2016 Interim presentation 3rd quarter 2016
Slide 9: Sectors with high increase in revenue
Sectors with high increase in revenue • Public admin – Increased by 20.5 percent (y-o-y) – Represents 24.0 percent of total revenues in Q3’16 • Power supply – Increased by 19.4 percent (y-o-y) – Represents 10.3 percent of total revenues in Q3’16 • Health – Increased by 13.8 percent (y-o-y) – Represe
Slide 10: Statnett signed a long-term agreement
Statnett signed a long-term agreement • Development and maintenance of the Nordic market system FIFTY (LARM MMS) • Duration up to 6 years • Estimated value between 150 and 300 million NOK Finansavisen 22 August 2016 10 10 November 2016 Interim presentation 3rd quarter 2016
Slide 11: Advisory services to realise digitalisation
Advisory services to realise digitalisation • Digitalisation of Child Welfare Services to secure supervision of children in need of their services • Digitalisation of new business processes at Hospital Pharmacies Enterprise 11 10 November 2016 Interim presentation 3rd quarter 2016
Slide 12: Advisory services to prepare for future services
Advisory services to prepare for future services • Procurement of a new intelligence system to support international police cooperation • Procurement of new technology to digitalise the planning and building applications for the City Illustration: Flickr, Owen Blacker of Trondheim • Building a frame
Slide 13: Customer and project mix
Customer and project mix • Project mix Variably priced contracts share of revenues Percentage – Variable contracts account for 100% 95.9 percent of total revenues 90% 80% • Customer portfolio 70% 60% – The 10 largest customers 50% represent 36.5 percent of Q3'11 Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 total r
Slide 14: Customer development
Customer development • Existing customers* Revenue customer split MNOK – Accounted for 91.3 percent of Existing customers* New customers (LTM)** revenues in Q3’16 300 • New customers** 250 – Customers won over the past 200 year generated revenues of NOK 24.3 million in Q3’16 150 100 50 * Existing cu
Slide 15: Regional organisation
Regional organisation 85 64 23 Trondheim 420 Bergen Sandvika Ørebro Stockholm Haugesund Oslo 318 Sandefjord Stavanger Skien Group Kristiansand Arendal 63 management and staff: 18 Malmø 54 15 10 November 2016 Interim presentation 3rd quarter 2016
Slide 16: Enthusiastic and competent employees
Enthusiastic and competent employees • 1 045 employees at the end of Number of employees end of quarter the third quarter 1200 – Up 12 from Q2’16 1000 800 – 13 more employees in the 600 past 12 months 400 200 – Average number of 0 Q3'11 Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 employees in the quarter up 1.8 p
Slide 17: Financial Review
Financial Review
Slide 18: Key figures
Key figures Three months ending Twelve months ending MNOK 30.09.2016 30.09.2015 Change 30.09.2016 30.09.2015 Change Operating revenue 280.4 256.8 9.2 % 1 281.6 1 212.7 5.7 % Operating profit (EBIT) 12.1 6.6 82.5 % 99.5 92.6 7.5 % EBIT margin 4.3 % 2.6 % 7.8 % 7.6 % Ordinary profit before tax 11.4 7.
Slide 19: Revenue
Revenue • Revenues increased by 9.2 percent Revenue split (quarterly figures) MNOK y-o-y Own consultants 400 Sub-contracted consultants – Revenues from own consultants 300 Other increased by 7.1 percent to NOK 200 234.7 million 100 – Revenues from sub-contracted 0 consultants increased by 29.5 Q3'11
Slide 20: Revenues from own consultants
Revenues from own consultants • Increased 7.1 percent y-o-y Revenue per employee (quarterly figures) TNOK – Positive impact from increase in 300 billing ratio by 2.6 percentage 250 points 200 150 – Positive impact from 1.8 percent 100 increase in average number of 50 employees 0 Q3'11 Q3'12 Q3'13 Q3
Slide 21: Analysis of change in revenues y-o-y
Analysis of change in revenues y-o-y Revenue MNOK 9 8 7 6 5 8,4 4 8,0 3 2 4,2 1 1,6 1,1 0,3 0 Billing ratio Sub-contractors No. of employees Hourly rate Maternity leave Other 21 10 November 2016 Interim presentation 3rd quarter 2016
Slide 22: Change in revenues – effect on EBIT
Change in revenues – effect on EBIT Revenue MNOK 9 Change in Revenue Effect on EBIT 8 7 6 5 8,4 4 8,0 8,0 3 2 4,2 1 1,6 1,5 0,8 0,8 1,1 0,6 0,3 0,1 0 Billing ratio Sub-contractors No. of employees Hourly rate Maternity leave Other 22 10 November 2016 Interim presentation 3rd quarter 2016
Slide 23: Earnings
Earnings • Operating profit increased y-o-y in EBIT and EBIT margin MNOK and Percent Q3’16 50 EBIT EBIT margin 15% – EBIT margin of 4.3 percent 40 compared to 2.6 percent in Q3’15 30 10% 20 • Operating expenses increased by 5% 10 7.2 percent compared to Q3’15 0 0% Q3'11 Q3'12 Q3'13 Q3'14 Q3'15 Q3'16
Slide 24: Cash flow
Cash flow • Cash flow from operations Cash flow from operations (per quarter) MNOK – Negative NOK 12.8 million in Q3’16 120 100 compared to negative NOK 0.8 80 million in Q3’15 60 40 • Rolling 12 months 20 0 -20 – Operational cash flow over the last -40 12 months was NOK 94.8 million Q3'11 Q3'12 Q3'
Slide 25: Outlook
Outlook
Slide 26: Outlook
Outlook • Combination of technology trends will be the drivers of innovation • Need of broad range of services and delivery models to execute digitalisation • Rapid user adoption of digital services Photo: http://wccftech.com 26 10 November 2016 Interim presentation 3rd quarter 2016
Slide 27: Shareholders as of 9.11.2016
Shareholders as of 9.11.2016 Investor Number of shares % of total VARNER KAPITAL AS 1 070 000 10,44 % STENSHAGEN INVEST AS 925 402 9,03 % VPF NORDEA AVKASTNING 776 120 7,57 % PROTECTOR FORSIKRING ASA 700 000 6,83 % MP PENSJON PK 569 904 5,56 % HURUM SVERRE FINN 507 252 4,95 % VEVLEN GÅRD AS 420 000