Interim presentation Fourth quarter 2018 Sverre Hurum, CEO Erik - PowerPoint PPT Presentation

Interim presentation Fourth quarter 2018 Sverre Hurum, CEO Erik Stubø, CFO 26 February 2019

Highlights in the quarter Revenue and number of employees MNOK and number o Revenue and EBIT 600 550 • Operating revenues increased by 16.8 percent 500 450 to NOK 535.4 million (y‐o‐y) 400 350 300 • EBIT increased by 32.7 percent to NOK 65.2 250 200 million (y‐o‐y) 150 100 50 o 1 369 employees 0 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 • Up 27 from Q3’18 1600 1400 • An increase of 154 in the past 12 months 1200 1000 o Still strong market 800 600 400 200 0 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 2

Operational Review 3

Our services Enterprise architecture Multi‐channel strategy Innovation Business intelligence IT architecture Product strategy Test management Security Project management Information management Digital strategy Service design Data science GDPR Big Data Change mangement Advice Digital marketing Courses Digital customer experience Tailored solutions Design Web solutions Analysis System development Open courses Brand‐building Business intelligence Internal company courses Content Collaboration Communication Technology SAP Cloud Integration Mobile solutions Application management Infrastructure SEO User testing IoT AI and machine learning Platform Social media

Public and private sector Public sector Private sector 51,0 % 51,5 % in Q4’17 48,5 % in Q4’17 49,0 % 5

Business sectors Q4 2018 Bank & finance Other Retail Power supply 2,4 % 4,8 % 5,6 % Transportation 9,9 % 8,8 % Health 2,2 % Service industry Industry 3,9 % 5,2 % 3,8 % Info and communication Oil & gas 25,1 % 28,3 % Public admin 6

Sectors with high increase in revenue o Oil & gas • Increased by 27.2 percent (y‐o‐y) • Represents 25.1 percent of total revenues in Q4’18 o Power supply • Increased by 34.9 percent (y‐o‐y) • Represents 9.9 percent of total revenues in Q4’18 o Retail • Increased by 21.8 percent (y‐o‐y) • Represents 5.6 percent of total revenues in Q4’18 o Bank & finance • Increased by 34.1 percent (y‐o‐y) • Represents 4.8 percent of total revenues in Q4’18 7

Norske Skog is homeshoring IT‐ services o Norske Skog is taking their Application Management Services (AMS) for the SAP business applications home from Malaysia o SAP AMS is a competence‐based service where local presence strengthens the quality of the delivery. o Bouvet has signed an agreement for 3 +1 + N year 8

«Det er forskere fra Nofima og Sintef Ocean som står bak portalen, som er utviklet i tett samarbeid med BarentsWatch og Bouvet .» «De offentlige dataene og forskningsdataene om bærekraft som er samlet i portalen er hentet fra blant annet Brønnøysundregistrene, Fiskeridirektoratet, Mattilsynet, Statistisk Sentralbyrå, Veterinærinstituttene og Vitenskapelig råd for lakseforvaltning .» Kilde https://www.ntbinfo.no/ 9

Customer and project mix Variably priced contracts share of revenues Percentage Project mix o 100% • Variable contracts account for 98.2 percent of 90% total revenues 80% 70% Customer portfolio o 60% 50% • The 10 largest customers represent 36.3 percent Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 of total revenues – equal to Q4’17 10 largest customers share of revenues • The 20 largest customers represent 49.3 Percentage percent of total revenues – equal to Q4’17 100% 75% 50% 25% 0% Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 10

Customer development Revenue customer split MNOK Existing customers* o Existing customers* New customers (LTM)** • Accounted for 94.3 percent of revenues in Q4’18 600 New customers** o 500 • Customers won over the past year generated 400 revenues of NOK 30.6 million in Q4’18 300 200 100 * Existing customers defined as customers that were invoiced in the corresponding quarter last year 0 ** New customers defined as customers won since end of Q4'17 Q4'18 corresponding quarter last year 11

Regional organisation 117 Trondheim Bouvet Nord ansatte 533 Bouvet Øst ansatte 28 Sesam ansatte 90 Bouvet Bergen Bergen Borlänge ansatte Oslo Sandvika Ørebro Stockholm Haugesund 429 Bouvet Rogaland Sandefjord Stavanger ansatte Skien Arendal Kristiansand 75 Bouvet Sverige ansatte 24 73 Bouvet Sør Konsernstab ansatte ansatte

Enthusiastic and competent employees 1 369 employees at the end of the quarter Number of employees end of quarter o • Up 27 from Q3’18 1500 • 154 more employees in the past 12 months 1000 • Average number of employees in the quarter up 500 11.5 percent from Q4’17 0 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 Annual growth in number of employees Percentage 20% 15% 10% 5% 0% Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 13

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https://tv.nrk.no/serie/viten‐og‐vilje/2018/DMTV23003118/avspiller

Financial Review 17

Key figures Three months ending Twelve months ending MNOK 31.12.2018 31.12.2017 31.12.2018 31.12.2017 Change Change Operating revenue 535.4 458.4 16.8 % 1 846.7 1 607.4 14.9 % Operating profit (EBIT) 65.2 49.1 32.7 % 191.6 144.1 32.9 % EBIT margin 12.2 % 10.7 % 10.4 % 9.0 % Ordinary profit before tax 66.3 49.8 33.0 % 191.6 145.9 31.3 % Profit for the period 53.5 39.7 35.0 % 150.5 112.0 34.3 % EPS (fully diluted) 5.21 3.82 36.3 % 14.66 10.79 35.8 % Net cash flow operations 215.9 158.6 36.2 % 219.0 149.0 46.9 % Equity ratio 36.7 % 34.2 % 36.7 % 34.2 % Cash and cash equivalents 278.4 205.4 35.6 % 278.4 205.4 35.6 % Number of employees (end of period) 1 369 1 215 12.7 % 1 369 1 215 12.7 % Number of employees (average) 1 362 1 221 11.5 % 1 305 1 171 11.4 % 18

Revenue Revenue split (quarterly figures) MNOK Own consultants Revenues increased by 16.8 percent y‐o‐y 600 o Sub‐contracted consultants 500 Other • Revenues from own consultants increased by 19.2 400 percent to NOK 440.2 million 300 200 • Revenues from sub‐contracted consultants increased by 100 4.7 percent to NOK 70.6 million 0 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 • Other revenues increased by 13.4 percent to NOK 24.5 million Revenue split (12 months rolling average) MNOK Own consultants Sub‐contracted consultants 2000 Other 1500 1000 500 0 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 19

Revenues from own consultants Revenue per employee (quarterly figures) Increased 19.2 percent y‐o‐y TNOK o 350 • Positive impact from increase in billing ratio by 0.9 300 percentage points 250 200 • Positive impact from 11.5 percent increase in average 150 100 number of employees 50 • 0 Positive impact from 3.1 percent increase in prices for Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 group hourly services Revenue per employee (LTM) • 62 workdays in Q4’18 – one less than Q4’17 TNOK 1150 1100 1050 1000 950 900 850 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 20

Analysis of change in revenues y‐o‐y Revenue MNOK 50 44,4 40 30 20 14,1 11,0 10 6,0 4,9 2,2 0 ‐5,6 ‐10 No. of employees Hourly rate Sick leave, vacation, Billing ratio Sub‐contractors & Progress in projects Number of work days overtime etc other revenue 21

Earnings EBIT and EBIT margin MNOK and Percent Operating profit (EBIT) increased by 32.7 percent to o 80 EBIT EBIT margin 14% NOK 65.2 million 12% 60 10% EBIT margin of 12.2 percent compared to 10.7 o 8% 40 percent in Q4’17 6% 4% 20 2% Operating expenses increased by 14.9 percent y‐o‐y o 0 0% Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 General growth in pay rate 1.2 percent y‐o‐y o EBIT and EBIT margin (LTM) Other operating expenses increased 23.7 percent MNOK and Percent o y‐o‐y 220 12% EBIT EBIT margin 200 10% 180 160 8% 140 120 6% 100 80 4% 60 40 2% 20 0 0% Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 22

Change in revenues – effect on EBIT Revenue MNOK Change in Revenue Effect on EBIT 50 44,4 40 30 20 14,1 11,0 10,3 9,2 10 6,5 6,0 4,9 3,6 2,2 1,6 1,3 0 ‐4,1 ‐5,6 ‐10 No. of employees Hourly rate Sick leave, vacation, Billing ratio Sub‐contractors & Progress in projects Number of work overtime etc other revenue days 23

Cash flow Cash flow from operations (per quarter) Cash flow from operations MNOK o 250 • NOK 215.9 million in Q4’18 compared to NOK 158.6 200 million in Q4’17 150 Last 12 months 100 o 50 • Operational cash flow over the last 12 months was NOK 0 219.0 million Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 ‐50 Cash flow from investing activities Cash flow from operations (LTM) o MNOK • Negative NOK 9.9 million compared to negative NOK 4.3 250 million in Q4’17 200 150 100 50 0 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 24

Outlook 25

Outlook o High demand o Decreased demand for large projects o Increased demand for cross‐functional teams working with digital strategy, digital operations improvement, digital employee experience, digital customer experience, digital product and service enablement and digital business model transformation o Increased demand for platform, IoT, security and cloud competence 26