Slide 1: Interim presentation Second quarter 2014
Interim presentation Second quarter 2014 Sverre Hurum. CEO Erik Stubø. CFO 28 August 2014
Slide 2: Highlights in the second quarter
Highlights g g in the second q quarter • Strong focus on digitalization and Revenues and number of employees MNOK and number mobility bilit 350 • Reduced demand from the Oil and 300 Gas sector 250 200 • R Revenues and d EBIT 150 – Operating revenues decreased 2.8 100 percent to NOK 276.2 million (y-
Slide 3: Peer comparison
Peer comparison p Revenues Number of employees EBIT-margin NOK million and SEK million* million Number* Number Percent* Percent Knowit Knowit HiQ Acando HiQ Bouvet HiQ Cybercom Cybercom Cybercom Acando Knowit Bouvet Bouvet Acando Itera Itera Itera 0 200 400 600 0 500 1,000 1,500 2,000 0% 5% 10% * Al
Slide 4: Operational Review
Operational Review —
Slide 5: Client development
Client development p • Existing clients* Revenues customer split MNOK – Accounted for 90.9 percent of Existing customers* New customers (LTM)** revenues in Q2’14 300 • New customers customers** 250 – Customers won over the past year generated revenues of NOK 25.0 200 million in Q2’14 150 100 50 * Ex
Slide 6: Client overview
Client overview • Decreased share of Ownership distribution Sector distribution Percentage Percentage revenues from f Oil and Gas 100% 100% 90% 90% • Growth in health, Public Other service industry and 80% 80% Other services public administration 70% 70% Transportation Retail • Increased share of 60
Slide 7: Changes in Oil and Gas
Changes g in Oil and Gas • Reduced activity in Statoil • Many opportunities connected to new players on the shelf – Experience from Statoil proves valuable 7 Interim presentation 2nd quarter 2014
Slide 8: Trust from public sector
Trust from p public sector Norwegian Armed Forces • Second largest customer of Bouvet • Frame agreement extended by one year The Norwegian National Collection Agency • Maintenance and further development (5+1+1 years) • Total value approx. NOK 100 million New orders within professional systems • Mun
Slide 9: Growth within Health Care
Growth within Health Care 9 Interim presentation 2nd quarter 2014
Slide 10: Business systems on all platforms
Business systems y on all p platforms New customer in the transport sector • Ordered a full ERP-system with mobile clients for all drivers Viking Redningstjeneste • Ordered a new mobile solution for their drivers • Long-term customer Statkraft • Implemented a new mobile solution to support the maint
Slide 11: Growth within Digital Communication
Growth within Digital g Communication Skjermbilde fra VM 2016 Skiskyting World Championship Biathlon 2016 DNV GL 11 New TV player for NRK
Slide 12: Employees
Employees p y • 945 employees at the end of the Number of employees end of quarter second quarter 1000 – 13 new employees in Q2’14 800 – 51 new employees in the past 12 600 months 400 – Average number of employees in 200 the quarter up 6.0 percent from 0 Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Q2’13 Ann
Slide 13: Regional organisation
Regional g organisation g 57 60 Trondheim 349 Sesam 13 Bergen Haugesund Sandvika Oslo Ørebro Stockholm 351 Sandefjord Stavanger Skien Group management Kristiansand Arendal 4 45 and staff: 19 Malmø 51 13 Interim presentation 2nd quarter 2014
Slide 14: Financial Review
Financial Review
Slide 15: Key figures
Keyy figures g Three months ending Twelve months ending MNOK 30.06.2014 30.06.2013 Change % 30.06.2014 30.06.2013 Change % Operating revenue 276.2 284.3 -2.8 % 1 124.5 1 063.1 5.8 % Operating profit (EBIT) 23.6 28.5 -16.9 % 95.0 79.0 20.2 % EBIT margin 86% 8.6 10 0 % 10.0 8 4% 8.4% 74% 7.4 13 7 % 13
Slide 16: Top line slightly reduced
Top p line slightly g y reduced • Revenues decreased by 2.8 Revenue split (quarterly figures) MNOK percentt y-o-y 350 Own consultants – Revenues from own consultants 300 Sub-contracted consultants down 0.9 percent to NOK 228.7 250 Other 200 million 150 100 – Revenues from sub-contracted 50 consultan
Slide 17: Reduced earnings
Reduced earnings g • Operating profit decreased y-o-y in EBIT and EBIT margin MNOK and Percent Q2’14 40 EBIT EBIT margin 15% – EBIT margin of 8.6 percent 30 compared to 10.0 percent in Q2’13 10% 20 • Operating expenses decreased by 10 5% 1.3 percent compared to Q2’13 0 0% Q2'09 Q2'10 Q2'11 Q2'12 Q2'
Slide 18: Solid cash flow
Solid cash flow • Cash flow from operations Cash flow from operations (per quarter) MNOK – Positive NOK 18.0 million in Q2’14, 120 100 up from NOK negative 2.2 million in 80 Q2’13 60 40 – Positively affected by changes in 20 0 accounts receivable and paid tax -20 -40 • Rolling g 12 months Q2'09 Q2'1
Slide 19: Creating shareholder value
Creating g shareholder value Investment Calculator NOK and number of shares Value of NOK 16,234 20,000 300 18,000 Value Number of shares 280 16,000 260 14,000 240 12,000 220 10 000 10,000 200 8,000 180 Investment of 6,000 NOK 4,000 160 4 000 4,000 140 2,000 120 0 100 May-07 May-08 May-09 May-10 May-
Slide 20: Outlook
Outlook
Slide 21: Outlook and summary
Outlook and summaryy • Cost cut within Oil and Gas • Continued strong focus on digitalization in all sectors • Increased competition will challenge profitability • Strong adaptability opens for f th growth further th and d iimproved d profitability in the long term 21 Interim presentation 2nd quarte
Slide 22: Shareholders as of 25.08.2014
Shareholders as of 25.08.2014 5 4 Investor Number of shares % of total VARNER KAPITAL AS 1 070 000 10.44 % STENSHAGEN INVEST AS 824 992 8.05 % MP PENSJON PK 669 904 6.54 % HURUM SVERRE FINN 505 751 4.93 % KLP AKSJE NORGE VPF 325 539 3.18 % VERDIPAPIRFONDET DNB NORDIC TECHNO 313 871 3.06 % VEVLEN GÅR
Slide 23: Appendix
Appendix
Slide 24: Customer and project mix
Customer and p project j mix • Project mix Variably priced contracts share of revenues Percentage – Variable contracts account for 95.5 100% percent of total revenues 90% 80% • Client portfolio 70% – The 10 largest customers represent 60% 43.8 percent of total revenues – 50% Q2'09 Q2'10 Q2'11 Q2'12