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

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Interim presentation Third quarter 2018 Sverre Hurum, CEO Erik Stub, CFO 14 November 2018 Highlights in the quarter Revenue and number of employees MNOK and number o Revenue and EBIT 500 450 Operating revenues increased by 14.9

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SLIDE 1

Interim presentation Third quarter 2018

Sverre Hurum, CEO Erik Stubø, CFO 14 November 2018

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SLIDE 2

Highlights in the quarter

  • Revenue and EBIT
  • Operating revenues increased by 14.9 percent

to NOK 395.4 million (y‐o‐y)

  • EBIT increased by 17.9 percent to NOK 20.1

million (y‐o‐y)

  • 1 342 employees
  • Up 38 from Q2’18
  • An increase of 131 in the past 12 months
  • Still strong market

Revenue and number of employees

200 400 600 800 1000 1200 1400 1600 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18

MNOK and number

50 100 150 200 250 300 350 400 450 500 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18

2

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SLIDE 3

Operational Review

3

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SLIDE 4

Public and private sector

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51.4 % 48.6 %

Public sector Private sector 50,3 % in Q3’17 49,7 % in Q3’17

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SLIDE 5

4.2 % 10.0 % 2.3 % 4.9 % 4.9 % 27.5 % 25.8 % 5.3 % 6.8 % 5.9 % 2.4 % Power supply Health Industry Info and communication Public admin Oil & gas Service industry Transportation Retail

Business sectors Q3 2018

Bank & finance Other 5

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SLIDE 6
  • Public admin
  • Increased by 17.2 percent (y‐o‐y)
  • Represents 27.5 percent of total revenues in Q3’18
  • Oil & gas
  • Increased by 35.5 percent (y‐o‐y)
  • Represents 25.8 percent of total revenues in Q3’18
  • Power supply
  • Increased by 28.0 percent (y‐o‐y)
  • Represents 10.0 percent of total revenues in Q3’18
  • Bank & finance
  • Increased by 17.5 percent (y‐o‐y)
  • Represents 4.2 percent of total revenues in Q3’18

Sectors with high increase in revenue

6

Forsvaret

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SLIDE 7

Digital solutions to support offshore operations

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  • Equinor´s Integrated Operations Centre

(IOC) has trusted Bouvet as a partner

  • IOC supports offshore operations

remote and the objective is to:

  • Reduce emissions
  • Increase the efficiency, safety and potential of

production

  • Duration at least one year, with

significant volume and value

Photo: Equinor

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SLIDE 8

New digital solutions for the Swedish government

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  • Bouvet is one of six suppliers to develop

the future digital solutions for public‐ service within health, social care and education

  • Duration 4 years
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SLIDE 9

Hydro Traffic Management System (HTMS)

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  • Delivered a pilot study for a traffic

system with real‐time positioning to

  • ptimise use of manually and

automated vehicles

Photo: Hydro Photo: Hydro

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SLIDE 10

Customer and project mix

  • Project mix
  • Variable contracts account for 97.5 percent of

total revenues

  • Customer portfolio
  • The 10 largest customers represent 38.8 percent
  • f total revenues – up from 36.4 percent in

Q3’17

  • The 20 largest customers represent 51.6

percent of total revenues – up from 49.4 percent in Q3’17

50% 60% 70% 80% 90% 100% Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18

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

0% 25% 50% 75% 100% Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18

10 Percentage Percentage

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SLIDE 11

Customer development

  • Existing customers*
  • Accounted for 94.2 percent of revenues in Q3’18
  • New customers**
  • Customers won over the past year generated

revenues of NOK 23.0 million in Q3’18

Revenue customer split

‐ 50 100 150 200 250 300 350 400 450 Q3'17 Q3'18 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

11 MNOK

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SLIDE 12

Regional organisation

Trondheim Bergen Haugesund Kristiansand Arendal Skien Sandefjord Oslo Sandvika Ørebro Stockholm

117

ansatte

Bouvet Nord

526

ansatte

Bouvet Øst

29

ansatte

Sesam

72

ansatte

Bouvet Sverige

64

ansatte

Bouvet Sør

426

ansatte

Bouvet Rogaland

85

ansatte

Bouvet Bergen

23

ansatte

Konsernstab Borlänge Stavanger

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SLIDE 13

Enthusiastic and competent employees

  • 1 342 employees at the end of the quarter
  • Up 38 from Q2’18
  • 131 more employees in the past 12 months
  • Average number of employees in the quarter up

11.3 percent from Q3’17

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

500 1000 1500 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 0% 5% 10% 15% 20% Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18

13 Percentage

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SLIDE 14

14

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SLIDE 15

Financial Review

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SLIDE 16

Key figures

Three months ending Twelve months ending MNOK 30.09.2018 30.09.2017 Change 30.09.2018 30.09.2017 Change Operating revenue 395.4 344.2 14.9 % 1 769.7 1 531.2 15.6 % Operating profit (EBIT) 20.1 17.1 17.9 % 175.5 127.9 37.2 % EBIT margin 5.1 % 5.0 % 9.9 % 8.4 % Ordinary profit before tax 20.2 17.0 18.8 % 175.1 129.3 35.4 % Profit for the period 15.4 12.5 23.0 % 136.6 98.7 38.5 % EPS (fully diluted) 1.51 1.22 23.7 % 13.32 9.64 38.2 % Net cash flow operations ‐14.1 ‐2.5 N/A 161.6 108.9 48.4 % Equity ratio 35.0 % 34.2 % 35.0 % 34.2 % Cash and cash equivalents 63.4 41.6 52.5 % 63.4 41.6 52.5 % Number of employees (end of period) 1 342 1 211 10.8 % 1 342 1 211 10.8 % Number of employees (average) 1 328 1 193 11.3 % 1 271 1 139 11.6 %

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SLIDE 17

Revenue

  • Revenues increased by 14.9 percent y‐o‐y
  • Revenues from own consultants increased by 16.2

percent to NOK 331.3 million

  • Revenues from sub‐contracted consultants increased by

9.1 percent to NOK 50.8 million

  • Other revenues increased by 6.3 percent to NOK 13.2

million

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

100 200 300 400 500 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 500 1000 1500 2000 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18

Own consultants Sub‐contracted consultants Other Own consultants Sub‐contracted consultants Other

17 MNOK MNOK

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SLIDE 18

Revenues from own consultants

  • Increased 16.2 percent y‐o‐y
  • Positive impact from increase in billing ratio by 1.5

percentage points

  • Positive impact from 11.3 percent increase in average

number of employees

  • Positive impact from 3.6 percent increase in prices for

group hourly services

  • 65 workdays in Q3’18 – equal to Q3’17

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

50 100 150 200 250 300 350 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 850 900 950 1000 1050 1100 1150 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18

18 TNOK TNOK

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SLIDE 19

Analysis of change in revenues y‐o‐y

Revenue MNOK 33.6 10.6 6.4 5.7 5.0 ‐10.2

‐15 ‐10 ‐5 5 10 15 20 25 30 35 40

  • No. of employees

Hourly rate Sick leave, vacation,

  • vertime etc

Billing ratio Sub‐contractors & other revenue Progress in projects

19

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SLIDE 20

Change in revenues – effect on EBIT

33.6 10.6 6.4 5.7 5.0 ‐10.2 8.2 7.9 3.4 4.2 0.4 ‐7.6 ‐15 ‐10 ‐5 5 10 15 20 25 30 35 40

  • No. of employees

Hourly rate Sick leave, vacation,

  • vertime etc

Billing ratio Sub‐contractors & other revenue Progress in projects Change in Revenue Effect on EBIT

20 Revenue MNOK

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Earnings

  • Operating profit (EBIT) up by 17.9 percent to NOK

20.1 million

  • EBIT margin of 5.1 percent compared to 5.0 percent

in Q3’17

  • Operating expenses increased by 14.7 percent

compared to Q3’17

  • General growth in pay rate 1.6 percent y‐o‐y
  • Other operating expenses increased 24.6 percent

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 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 EBIT EBIT margin 0.0% 5.0% 10.0% 15.0% 10 20 30 40 50 60 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 EBIT EBIT margin

21 MNOK and Percent MNOK and Percent

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SLIDE 22

Cash flow

  • Cash flow from operations
  • Negative NOK 14.1 million in Q3’18 compared to negative

NOK 2.5 million in Q3’17

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

161.6 million

  • Cash flow from investing activities
  • Negative NOK 10.1 million compared to negative NOK 7.1

million in Q3’17

MNOK

Cash flow from operations (LTM)

50 100 150 200 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18 ‐50 50 100 150 200 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17 Q3'18

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Cash flow from operations (per quarter)

MNOK

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SLIDE 23

Outlook

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Outlook

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  • High demand
  • Decreased demand for large projects
  • Increased demand for cross‐functional

teams

  • Increased demand for broad range of

services

  • Increased demand for platform, IoT,

security and cloud competence

  • Clients will increase their digital skills
  • Too low capacity in the IT sector
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SLIDE 25

Shareholders as of 14.11.2018

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Shareholders Number of shares % of total VARNER KAPITAL AS 1 070 000 10,44 % VPF NORDEA AVKASTNING 985 331 9,61 % STENSHAGEN INVEST AS 736 699 7,19 % VIRTUS KAR INTERNATIONAL 517 940 5,05 % HURUM SVERRE FINN 508 366 4,96 % MP PENSJON KP 504 004 4,92 % VEVLEN GÅRD AS 453 502 4,42 % PROTECTOR FORSIKRING ASA 298 610 2,91 % STUBØ ERIK 237 866 2,32 % UBS SWITZERLAND AG 204 030 1,99 % SIX SIS AG 200 000 1,95 % VPF NORDEA KAPITAL 166 690 1,63 % STOREBRAND NORGE I VERDIPAPIRFOND 162 929 1,59 % TELENOR PENSJONSKASSE 154 141 1,50 % VOLLE ANDERS 115 738 1,13 % STATE STREET BANK AND TRUST COMP 100 972 0,99 % DYVI INVEST AS 100 000 0,98 % BOUVET ASA 97 053 0,95 % RADIG NILS-HÅKAN 75 043 0,73 % STOREBRAND VEKST VERDIPAPIRFOND 71 763 0,70 % Number of shares held by the 20 largest shareholders 6 760 677 65,96 %