Fourth quarter 2013 Sverre Hurum. CEO Erik Stub. CFO 27 February - PowerPoint PPT Presentation

Interim presentation Fourth quarter 2013 Sverre Hurum. CEO Erik Stubø. CFO 27 February 2014

Highlights in the fourth quarter g g q • Good demand in all Bouvet’s Revenues and number of employees MNOK and number MNOK and number service areas 350 • Solid financial results 300 250 • • The organisation increased with The organisation increased with 200 200 150 15 new colleagues in Q4’13 100 • Strategy of delivering services 50 0 0 up close to the client’s business l t th li t’ b i Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 has yielded results 1000 800 600 400 200 0 0 Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 2 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Operational Review Operational Review

Knowledge intensive services g is all about people

Services close to customers’ business Bouvet Business Process Services team 5 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Continuous development of concepts p p and services • Sesam for – Search – Integration – Data analysis Data analysis 6 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Customer Experience Journey p y 7 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Increase in Oil & Gas • Increased revenues and more Development of O&G customers NOK million NOK million customers within oil and gas 500 • Consultancy closer to 10 450 7 clients customers’ core business clients clients 400 7 • Statoil recently extended one of clients 350 five ongoing agreements with 300 6 Bouvet Bouvet clients 250 4 200 clients 150 100 50 0 2009 2010 2011 2012 2013 8 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Long term customers g

C Customers t Competence Competence Culture 10

Financial Review Financial Review

Key figures y g Three months ending Twelve months ending MNOK 31.12.2013 31.12.2012 Change 31.12.2013 31.12.2012 Change Operating revenue 298.2 280.5 6.3% 1,112.7 1,030.3 8.0 % Operating profit (EBIT) 27.2 21.2 28.5% 95.1 78.2 21.5 % EBIT margin EBIT margin 9.1 % 9 1 % 7 6 % 7.6 % 8.5 % 8 5 % 7 6 % 7.6 % 27.9 21.8 28.2 % 97.1 80.2 21.2 % Ordinary profit before tax 20.0 14.7 36.8 % 69.8 56.6 23.5 % Profit for the period EPS (fully diluted) EPS (f ll dil t d) 1.92 1 92 1 39 1.39 37 7 % 37.7 % 6 67 6.67 5 35 5.35 24 8 % 24.8 % Net cash flow operations 92.8 94.7 -2.0 % 99.4 97.4 2.0 % Equity ratio 35.9 % 34.7 % 35.9 % 34.7 % 169.2 137.8 22.8 % 169.2 137.8 22.8 % Cash and cash equivalents 931 881 5.7 % 931 881 5.7 % Number of employees (end of period) 928 879 5.6 % 908 848 7.1 % Number of employees (average) 12 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Top line growth p g • Revenues up by 6.4 percent YOY Revenue split (quarterly figures) MNOK MNOK – Revenues from own consultants up 350 Own consultants 12.9 percent to NOK 247.0 million 300 Sub-contracted consultants 250 Other – Revenues from sub-contracted 200 150 consultants declined 18.9 percent 100 to NOK 39.2 50 0 – Sub-contracted consultants’ share Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 declined to 13.1 percent from 17.2 Revenue split (12 months rolling average) percent in Q4’12 MNOK 1200 • Billing rate up 2.3 percentage Own consultants Sub-contracted consultants 1000 1000 points from Q4’12 Other 800 600 • Prices for group hourly services 400 increased 1.9 percent from Q4’12 200 0 Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 13 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Increased earnings g • Continued y-o-y increase in EBIT and EBIT margin MNOK and Percent MNOK and Percent Operating profit in Q4’13 40 15% EBIT EBIT margin – EBIT margin of 9.1 percent 30 compared to 7.6 percent in Q4’12 10% 20 20 • Operating expenses increased by 5% 10 4.5 percent from Q4’12 0 0% Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 • Other operating expenses Other operating expenses EBIT and EBIT margin (12 months rolling) increased 4.7 percent MNOK and Percent 100 15% EBIT EBIT margin 80 80 10% 60 40 5% 20 - 0% Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 14 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Solid cash flow • Cash flow from operations Cash flow from operations (per quarter) MNOK MNOK – NOK 92.8 million in Q4’13, slightly 120 100 down from NOK 94.7 million in 80 Q4’12 60 40 40 – Positively affected by working 20 0 capital changes, including work in -20 progress -40 Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 • Rolling 12 months Cash flow from operations (LTM) MNOK – Operational cash flow over the last 120 12 months was NOK 99.4 million 100 80 60 40 20 0 Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 15 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Outlook Outlook

Customer Experience Mobile Enterprise E-commerce Data analysis y Security 17 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Outlook and summary y • Strong financial results • Solid demand for all services within major sectors • • Strategy of delivering services Strategy of delivering services up close to the client’s business has yielded results 18 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Shareholders as at 24.02.2014 4 4 Investor Number of shares % of total VARNER KAPITAL AS 1 070 000 10,44% STENSHAGEN INVEST AS STENSHAGEN INVEST AS 909 992 909 992 8 88% 8,88% MP PENSJON PK 669 904 6,54% HURUM SVERRE FINN 505 751 4,93% KLP AKSJE NORGE VPF 340 628 3,32% MORGAN STANLEY & CO INTERNAT. PLC 314 149 3,06% VERDIPAPIRFONDET DNB NORDIC TECHNO 313 871 3,06% VEVLEN GÅRD AS 300 000 2,93% KOMMUNAL LANDSPENSJONSKASSE 246 049 2,40% STUBØ ERIK 235 251 2,30% VERDIPAPIRFONDET HANDELSBANKEN 220 000 2,15% , VERDIPAPIRFONDET EIKA NORGE 194 626 1,90% TELENOR PENSJONSKASSE 186 800 1,82% VERDIPAPIRFONDET DNB NORDEN (III) 153 808 1,50% STOREBRAND VEKST 150 919 1,47% STOREBRAND NORGE I 150 574 1,47% DYVI INVEST AS 150 000 1,46% VERDIPAPIRFONDET DNB SMB 125 000 1,22% RIISNÆS STEIN KRISTIAN 123 489 1,20% VOLLE ANDERS 118 075 1,15% Number of shares held by the 20 largest shareholders 6 478 886 63,21% 19 Dato: February 27, 2014 Interim presentation 4th quarter 2013 19

Appendix Appendix

Client development p • Existing clients* Revenues customer split MNOK MNOK – Revenues from existing clients Existing customers* New customers (LTM)** decreased 2 % from Q4’12 350 – Accounted for 98 percent of p 300 300 revenues in Q4’13 250 • New customers** – C Customer won over the past year t th t 200 200 generated revenues of NOK 23.4 million in Q4’13 150 100 100 50 * Existing customers defined as customers that were invoiced in the corresponding quarter last year - ** New customers defined as customers won since end of Q4'12 Q4'13 corresponding quarter last year 21 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Customer and project mix p j • Project mix Variably priced contracts share of revenues Percentage Percentage – Variable contracts account for 93.8 100% percent of total revenues 90% 80% • Client portfolio Client portfolio 70% – The 10 largest customers represent 60% 51 percent of total revenues 50% Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 – Th The 20 largest customers represent 20 l t t t 10 largest customers share of revenues 64 percent of total revenues Percentage 100% 75% 75% 50% 25% 0% Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 22 Dato: February 27, 2014 Interim presentation 4th quarter 2013

Employees p y • 931 employees at the end of the Number of employees end of quarter fourth quarter 1000 – 15 new employees in Q4’ 13 800 – 50 new employees in the past 12 600 months 400 200 – Average number of employees end of quarter up 5.6 percent from 0 Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 Q4’12 Q4 12 Annual growth in number of employees Percentage 25% 20% 20% 15% 10% 5% 0% Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q4'13 23 Dato: February 27, 2014 Interim presentation 4th quarter 2013