Interim presentation Second quarter 2019 Sverre Hurum, CEO Erik - - PowerPoint PPT Presentation

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Interim presentation Second quarter 2019 Sverre Hurum, CEO Erik - - PowerPoint PPT Presentation

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Interim presentation Second quarter 2019 Sverre Hurum, CEO Erik Stub, CFO 22 August 2019 Highlights in the quarter Revenue and number of employees MNOK and number o Revenue and EBIT 600 550 Operating revenues increased by 14.3 percent

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SLIDE 1

Interim presentation Second quarter 2019

Sverre Hurum, CEO Erik Stubø, CFO 22 August 2019

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SLIDE 2

Highlights in the quarter

  • Revenue and EBIT
  • Operating revenues increased by 14.3 percent

to NOK 518.4 million (y-o-y)

  • EBIT increased by 6.3 percent to NOK 59.3

million (y-o-y)

  • 1 455 employees
  • Up 50 from Q1’19
  • An increase of 151 in the past 12 months
  • Still strong market

Revenue and number of employees

200 400 600 800 1000 1200 1400 1600 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19

MNOK and number

50 100 150 200 250 300 350 400 450 500 550 600 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19

2

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SLIDE 3

Operational Review

3

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SLIDE 4

Our services

Communication Technology Consulting

Brand-building Mobile solutions Web solutions Collaboration Design User testing Content Social media Data Analysis System development Integration Infrastructure Application management Tailored solutions SAP Business intelligence Security Digital strategy Multi-channel strategy Enterprise architecture Business intelligence Information management Project management Test management IT architecture Open courses

Courses

Data science GDPR Big Data IoT AI and machine learning SEO Change mangement Digital marketing Cloud Services Internal company courses Product strategy Service design Innovation Digital customer experience Platforms DevOps Agile Lean Hybrid Cloud

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SLIDE 5

Public and private sector

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48,8 % 51,2 %

Public sector Private sector 50,5 % in Q2’18 49,5 % in Q2’18

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SLIDE 6

4,1 % 9,4 % 2,4 % 4,8 % 3,7 % 27,3 % 27,7 % 5,1 % 7,5 % 5,7 % 2,3 % Power supply Health Industry Info and communication Public admin Oil & gas Service industry Transportation Retail

Business sectors Q2 2019

Bank & finance Other 6

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SLIDE 7
  • Oil & gas
  • Increased by 25.4 percent (y-o-y)
  • Represents 27.7 percent of total revenues in Q2’19
  • Public admin
  • Increased by 18.1 percent (y-o-y)
  • Represents 27.3 percent of total revenues in Q2’19
  • Industry
  • Increased by 37.2 percent (y-o-y)
  • Represents 4.8 percent of total revenues in Q2’19
  • Bank & finance
  • Increased by 13.8 percent (y-o-y)
  • Represents 4.1 percent of total revenues in Q2’19

Sectors with high increase in revenue

Forsvaret

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SLIDE 8

New information and arrival center at Oslo Airport

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  • Developed in partnership with several

cross-functional organizations

  • The initial delivery is foundation for

further enhancements and development, based on knowledge and data

  • Bouvet´s deliveries:
  • Software architecture
  • Multi lingual self service information kiosks
  • Service design and user experience
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SLIDE 9

Statnett has signed an agreement with Bouvet

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  • Statnett has signed an agreement with

Bouvet on the development and governance of IT-solutions

  • The duration of the agreement is up to 6

years

  • Estimated value between 1200 and 1500

million NOK

Foto: Statnett.no Foto: Statnett.no

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SLIDE 10

Signed new agreement with Swedish Medical Products Agency

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  • Swedish Medical Products Agency has

trusted Bouvet and Sesam to develop management system for side effects and signals for human and veterinary medicine

  • The project has a value of approximately

21 MSEK and application management of 4 years will be added

  • Duration up to 6 years including project

and application management

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SLIDE 11

Some of Bouvet´s consulting services

  • Strategic level
  • Digital leadership, roadmap and

strategy

  • Innovation services
  • Organizational change
  • Service design
  • Sustainability

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  • Operational level
  • Enterprise, information and

functional architecture

  • Program, project, product and

change management

  • Agile Coaching
  • QA lead
  • Business Intelligence
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SLIDE 12

Customer and project mix

  • Project mix
  • Variable contracts account for 98.0 percent of

total revenues

  • Customer portfolio
  • The 10 largest customers represent 39.2 percent
  • f total revenues – up from 37.4 percent in

Q2’18

  • The 20 largest customers represent 50.3

percent of total revenues – up from 49.6 percent in Q2’18

90% 92% 94% 96% 98% 100% Q2'15 Q2'16 Q2'17 Q2'18 Q2'19

Variably priced contracts share of revenues 10 largest customers share of revenues

0% 25% 50% 75% 100% Q2'15 Q2'16 Q2'17 Q2'18 Q2'19

12 Percentage Percentage

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SLIDE 13

Customer development

  • Existing customers*
  • Accounted for 94.1 percent of revenues in Q2’19
  • New customers**
  • Customers won over the past year generated

revenues of NOK 30.6 million in Q2’19

Revenue customer split

100 200 300 400 500 600 Q2'18 Q2'19 Existing customers* New customers (LTM)**

* Existing customers defined as customers that were invoiced in the corresponding quarter last year ** New customers defined as customers won since end of corresponding quarter last year

13 MNOK

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SLIDE 14

Regional organisation

Trondheim Bergen Haugesund Kristiansand Arendal Skien Sandefjord Oslo Sandvika Ørebro Stockholm

124

ansatte

Bouvet Nord

541

ansatte

Bouvet Øst

38

ansatte

Sesam

68

ansatte

Bouvet Sverige

78

ansatte

Bouvet Sør

488

ansatte

Bouvet Rogaland

94

ansatte

Bouvet Bergen

24

ansatte

Konsernstab Borlänge Stavanger

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SLIDE 15

Enthusiastic and competent employees

  • 1 455 employees at the end of the quarter
  • Up 50 from Q1’19
  • 151 more employees in the past 12 months
  • Average number of employees in the quarter up

11.5 percent from Q2’18

Number of employees end of quarter Annual growth in number of employees

500 1000 1500 2000 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19 50 100 150 200 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19

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SLIDE 16

Magnet award 2019 NM – employer branding

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  • «24 hours hackathon»
  • Gold - Open category
  • Bronze – Best campaign
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SLIDE 17

Financial Review

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SLIDE 18

Key figures

Three months ending Six months ending Twelve months ending MNOK 30.06.2019 30.06.2018 Change 30.06.2019 30.06.2018 Change 30.06.2019 30.06.2018 Change Operating revenue 518.4 453.7 14.3 % 1 082.7 915.9 18.2 % 2 013.4 1 718.6 17.2 % Operating profit (EBIT) 59.3 55.7 6.3 % 128.1 106.3 20.5 % 213.4 172.4 23.8 % EBIT margin 11.4 % 12.3 % 11.8 % 11.6 % 10.6 % 10.0 % Ordinary profit before tax 59.3 55.3 7.2 % 127.9 105.1 21.7 % 214.4 171.9 24.7 % Profit for the period 46.4 42.9 8.1 % 99.8 81.5 22.4 % 168.8 133.7 26.2 % EPS (fully diluted) 4.49 4.19 7.1 % 9.65 7.94 21.5 % 16.37 13.05 25.5 % Net cash flow operations 32.2 31.8 1.5 % 36.5 17.2 112.7 % 238.3 173.3 37.5 % Equity ratio 23.4 % 31.9 % 23.4 % 31.9 % 23.4 % 31.9 % Cash and cash equivalents 138.8 87.7 58.3 % 138.8 87.7 58.3 % 138.8 87.7 58.3 % Number of employees (end of period) 1 455 1 304 11.6 % 1 455 1 304 11.6 % 1 455 1 304 11.6 % Number of employees (average) 1 435 1 287 11.5 % 1 416 1 268 11.7 % 1 381 1 237 11.6 %

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SLIDE 19

Revenue

  • Revenues increased by 14.3 percent y-o-y
  • Revenues from own consultants increased by 13.7

percent to NOK 429.5 million

  • Revenues from sub-contracted consultants increased by

16.0 percent to NOK 69.5 million

  • Other revenues increased by 22.1 percent to NOK 19.3

million

Revenue split (quarterly figures) Revenue split (12 months rolling average)

100 200 300 400 500 600 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19 500 1000 1500 2000 2500 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19

Own consultants Sub-contracted consultants Other Own consultants Sub-contracted consultants Other

19 MNOK MNOK

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SLIDE 20

Revenues from own consultants

  • Increased 13.7 percent y-o-y
  • Positive impact from 11.5 percent increase in average

number of employees

  • Positive impact from 4.2 percent increase in prices for

group hourly services

  • Positive impact from increase in billing ratio by 0.7

percentage points

  • 58 workdays in Q2’19 – two less than Q2’18

Revenue per employee (quarterly figures) Revenue per employee (LTM)

100 200 300 400 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19 900 950 1000 1050 1100 1150 1200 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19

20 TNOK TNOK

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SLIDE 21

Analysis of change in revenues y-o-y

Revenue MNOK

44,3 18,2 9,6 4,1 3,6 3,5

  • 6,3
  • 12,3
  • 20
  • 10

10 20 30 40 50

  • No. of employees

Hourly rate Sub-contractors Billing ratio Sick leave & other Other revenue Easter vacation Number of work days

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SLIDE 22

Earnings

  • Operating profit (EBIT) increased by 6.3 percent to

NOK 59.3 million

  • EBIT margin of 11.4 percent compared to 12.3

percent in Q2’18

  • Operating expenses increased by 15.4 percent y-o-y
  • General growth in pay rate 2.4 percent y-o-y
  • Other operating expenses decreased 4.9 percent

y-o-y, due to IFRS 16

EBIT and EBIT margin EBIT and EBIT margin (LTM)

0% 2% 4% 6% 8% 10% 12% 20 40 60 80 100 120 140 160 180 200 220 240 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19 EBIT EBIT margin 0% 2% 4% 6% 8% 10% 12% 14% 20 40 60 80 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19 EBIT EBIT margin

22 MNOK and Percent MNOK and Percent

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SLIDE 23

Change in revenues – effect on EBIT

44,3 18,2 9,6 4,1 3,6 3,5

  • 6,3
  • 12,3

8,6 12,3 0,8 2,8 2,3 0,9

  • 1,1
  • 8,3
  • 20
  • 10

10 20 30 40 50

  • No. of employees

Hourly rate Sub-contractors Billing ratio Sick leave & other Other revenue Easter vacation Number of work days Change in Revenue Effect on EBIT

23 Revenue MNOK

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SLIDE 24

Cash flow

  • Cash flow from operations
  • NOK 32.2 million in Q2’19 compared to NOK 31.8 million

in Q2’18

  • Last 12 months
  • Operational cash flow over the last 12 months was NOK

238.3 million

  • Cash flow from investing activities
  • Negative NOK 6.5 million compared to negative NOK 16.0

million in Q2’18

MNOK

Cash flow from operations (LTM)

50 100 150 200 250 300 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19

  • 50

50 100 150 200 250 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19

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Cash flow from operations (per quarter)

MNOK

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SLIDE 25

Outlook

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SLIDE 26

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SLIDE 27

Outlook

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  • High demand
  • Increased demand for cross-

functional teams

  • Increased demand for platform,

IoT, security and cloud competence

  • Challenging recruitment
  • Many newly graduated to be
  • nboarded in Q3
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SLIDE 28

Shareholders as of 22.08.2019

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Shareholders Number of shares % of total VARNER KAPITAL AS 1 070 000 10,44 % Virtus KAR International Small-Cap 922 781 9,00 % STENSHAGEN INVEST AS 736 699 7,19 % VERDIPAPIRFONDET NORDEA AVKASTNING 618 583 6,03 % SVERRE HURUM 491 779 4,80 % VEVLEN GÅRD AS 453 502 4,42 % MP PENSJON PK 440 082 4,29 % ERIK STUBØ 238 279 2,32 % UBS Switzerland AG 203 700 1,99 % VERDIPAPIRFONDET NORDEA KAPITAL 169 284 1,65 % STOREBRAND NORGE I VERDIPAPIRFOND 161 326 1,57 % TELENOR PENSJONSKASSE 140 000 1,37 % State Street Bank and Trust Comp 136 006 1,33 % SIX SIS AG 134 582 1,31 % ANDERS VOLLE 116 151 1,13 % DYVI INVEST AS 99 787 0,97 % VERDIPAPIRFONDET NORDEA NORGE PLUS 83 243 0,81 % NILS-HÅKAN RADIG 75 172 0,73 % EMPLOYEES RETIR SYSTEM OF TEXAS 72 400 0,71 % PAUL HALLAN SVENDSEN 69 620 0,68 % Number of shares held by the 20 largest shareholders 6 432 976 62,74 %