Bouvet Asa · OSL:BOUV
Bouvet Asa — Q3 2010 Earnings Presentation
26 slides from Bouvet Asa's earnings presentation, Nov 9, 2010
Slide 1: Third Quarter 2010
9 November 2010 Third Quarter 2010 CEO Sverre Hurum CFO Erik Stubø
Slide 2: Disclaimer
Disclaimer The information contained in the Presentation is for your use only. Recipients may not reproduce, redistribute or pass on, in whole or in part, the Presentation to any other person. The contents of the Presentation are not to be construed as legal, business, investment or tax advice or si
Slide 3: Highlights in the third quarter
Highlights in the third quarter •! Revenues and EBIT Revenues and number of employees –! Revenues increased 33.7 percent YoY 200 to NOK 160.2 172 150 160 167 160 –! EBIT up 40.5 percent to NOK 9.7 NOK million million YoY 100 120 –! Utilisation rate up 3.9 percentage 50 points •! Growing workforce 0
Slide 4: Operational Review
Third Quarter 2010 Operational Review
Slide 5: Geographic presence
Geographic presence Bouvet North (32) •! Trondheim Bouvet East (263) Bouvet West (267) •! Oslo •! Stavanger •! Bergen •! Haugesund Bouvet Sweden (18) •! Stockholm •! Malmø Bouvet South (37) •! Skien •! Arendal •! Kristiansand
Slide 6: An integrated service offering
An integrated service offering Portals Technical Training/Courses infrastructure Business System intelligence USABILITY USABILITY development SAP System integration Application management
Slide 7: Projects and deliveries
Projects and deliveries •! New intranet for the Norwegian Broadcasting Corporation (NRK) –! Bouvet is responsible for all aspects of the delivery – conceptual development, process management, graphical design, the user experience, development, integration and testing. •! Service Management for GDF S
Slide 8: Public client roster
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Slide 9: Private client roster
Private client roster wa at, (C S, 3" IA fle | oe Statoil HYDRO a ay € A COSL_ DnBNOR telenor Color Line VITAL OS NW Geasenne | Q Sorporate BKK A Staples Company Wilh. Wilhelmsen FREE aibet X46 & 4 bp Al ConocoPhillips 2 is VIKING KONGSBERG TOTAL e° bouvet
Slide 10: Long term client development
Long term client development 10 largest customers revenues* 10 largest customers share of total revenues* 250 70 % 60 % 200 50 % 150 40 % 30 % 100 20 % 50 10 % - 0% 9M 2007 9M 2010 9M 2007 9M 2010 * 10 largest clients in the nine first months of 2007, and the same clients in 2010
Slide 11: Growth in the customer base
Growth in the customer base •! Keeping customers Revenues – customer split –! The existing customers* increased Existing customers* New customers (LTM)** 23 percent from Q3’09 180 –! Existing customers* represent 92 160 percent of revenues in Q3’10 140 •! Expanding the customer base 120 –! Revenues
Slide 12: Constant project and customer mix
Constant project and customer mix •! Project mix Variably priced contracts share of revenues –! The variably priced contracts share 100 % 94,9 % 94,1 % 95,2 % 94,2 % 94,7 % of total revenues is continuing at 75 % the stable level •! Customer mix 50 % –! Revenues from the three largest 25 % customers
Slide 13: A growing workforce
A growing workforce •! Our employees is an invaluable Changes in total number of employees resource 40 –! Training and motivation 35 30 –! Interesting assignments 25 –! Bouvet is considered a leading 20 specialist environment 15 10 5 •! 617 employees as of 0 30 September ‘10 Q3'08 Q4'08 Q1'09 Q2'09
Slide 14: Financial Review
Third Quarter 2010 Financial Review
Slide 15: Key Figures
Key Figures Three months ending Twelve months ending NOK millions 30.09.2010 30.09.2009 Change 30.09.2010 30.09.2009 Change Operating revenue 160.2 119.8 +33.7 % 658.9 585.6 +12.5% Operating profit (EBIT) 9.7 6.9 +40.5 % 55.8 63.1 -11.6% EBIT margin 6.1 % 5.8 % 8.5% 10.8% Ordinary profit before tax
Slide 16: Strong top-line growth
Strong top-line growth •! Revenues increased by Revenue split (12 months rolling average) 33.7 percent compared to Q3’09 Other Sub-contracted consultants Own consultants 700 –! Revenues from own consultants 600 increased YOY by 26.5 percent to 500 400 NOK 130.3 million 300 –! Sub-contracted consulta
Slide 17: Value drivers
Value drivers •! Average price per hour down 1.9 Utilization rate percent compared to Q3’09 100 % –! High variation between regions 95 % –! Dependent on type of contract and 90 % assignment 85 % •! Utilization rate of 74.7 percent in 80 % Q3’10 vs. 70.8 percent in Q3’09 75 % –! Utilization rate vari
Slide 18: Positive EBIT development
Positive EBIT development •! EBIT increase YOY* EBIT and EBIT margin (12 months rolling) –! The EBIT-margin grows to 70,0 63,1 6.1 percent from 5.8 in Q3’09 60,0 57,1 53,2 53,0 55,8 •! OPEX up 33.3 percent 50,0 NOK million 40,0 •! Average salary increased 30,0 2.4 percent in the last twelve 20,0 mon
Slide 19: Cost drivers
Cost drivers •! Personnel expenses is a large part Total personnel expense per employee of cost base Per quarter 12M Average –! Total salaries over average number 250 NOK Thousand of employees is stable 200 150 –! Seasonal effects 100 50 •! Total OPEX per employee 0 Q1'07 Q3'07 Q1'08 Q3'08 Q1'09 Q3'
Slide 20: Cash flow from operations
Cash flow from operations •! Growth in cash flow from Cash flow from operations (12 months rolling) operations 70 –! Positive in Q3’10 up from NOK -3.4 62 million in Q3’09 60 56 –! Working capital related to accounts receivables and work in progress 50 increases NOK 22.8 (up 18.3 %) million from Q3’
Slide 21: Capital structure
Capital structure Assets Equity and liabilities 300 300 250 250 200 200 NOK million NOK million 150 150 100 100 45% 40% 33% 50 50 19% 0 0 30.09.09 30.09.10 30.06.09 30.06.10 Cash and Cash Equivalents Equity Other Current Assets Short-term debt Non Current Assets Long-term debt
Slide 22: Cash position
Cash position •! Generating cash Cash over Revenues (percent) –! Cash generation is highest at the 120 % end of the year –! The cash is distributed in 100 % accordance with dividend policy 80 % •! Cash needed for growth –! Cash/Revenues was over 100 60 % percent at the time of IPO –! Cash distribute
Slide 23: Outlook and Closing Remarks
Third Quarter 2010 Outlook and Closing Remarks
Slide 24: Market development and outlook
Market development and outlook •! The market continued to develop positively in Q3’10 –! Bouvet expects demand to remain strong –! Long-term customer relations and frame agreements provides a solid platform •! Bouvet’s regional model is a competitive advantage –! Local presence provides a closeness
Slide 25: Summary
Summary •! Revenues and EBIT –! Revenues increased 33.7 percent YoY to NOK 160.2 –! EBIT up 40.5 percent to NOK 9.7 million YoY •! Growing in numbers –! 25 new colleagues in Q3 and 102 over the last 12 months –! Improved utilization rate •! Important customer development –! Market activity continue
Slide 26: Shareholders as of 8 November 2010
Shareholders as of 8 November 2010 Shareholder % of total shares Number of shares 1 JPMORGAN CHASE BANK 9.86% 1 011 061 2 HURUM SVERRE FINN 6.27% 642 697 3 MP PENSJON 5.86% 601 000 4 DNB NOR NORDIC TECHNOLOGY VPF 5.42% 556 056 5 KOMMUNAL LANDSPENSJONSKASSE 4.68% 480 000 6 KLP AKSJE NORGE VPF 4.38% 4