Interim presentation Second quarter 2014 Sverre Hurum . CEO Erik Stubø. CFO 28 August 2014
Highlights in the second quarter g g q • Strong focus on digitalization and Revenues and number of employees MNOK and number MNOK and number mobility bilit 350 • Reduced demand from the Oil and 300 Gas sector 250 • R Revenues and EBIT d EBIT 200 200 150 – Operating revenues decreased 2.8 100 percent to NOK 276.2 million (y-o-y) 50 – EBIT down by 16 9 percent to NOK EBIT down by 16.9 percent to NOK 0 0 Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 23.6 million (y-o-y) 1000 • New assignments within Oil and 800 Gas Power Supply Retail and Gas, Power Supply, Retail and 600 Public Services 400 • 945 employees 200 – 13 new in the quarter 0 0 – 51 new in the past 12 months Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 2 Interim presentation 2nd quarter 2014
Peer comparison p Revenues Number of employees EBIT-margin NOK million and SEK million* NOK million and SEK 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% * All figures are per Q2’14 3 Interim presentation 2nd quarter 2014
Operational Review Operational Review
Client development p • Existing clients* Revenues customer split MNOK MNOK – Accounted for 90.9 percent of Existing customers* New customers (LTM)** revenues in Q2’14 300 • New customers** New customers 250 – Customers won over the past year generated revenues of NOK 25.0 200 million in Q2’14 150 100 50 * Existing customers defined as those customers invoiced in the corresponding quarter last year - ** New customers defined as customers won since end of corresponding quarter last year Q2'13 Q2'14 5 Interim presentation 2nd quarter 2014
Client overview • Decreased share of Sector distribution Ownership distribution Percentage Percentage Percentage Percentage revenues from Oil f Oil and Gas 100% 100% • Growth in health, 90% 90% Other Public service industry and service industry and 80% 80% Other services public administration Transportation 70% 70% Retail • Increased share of 60% 60% Power supply revenues from 50% 50% Public customers own by administration 40% 40% Private the government 30% 30% (nationally or locally) 20% Oil and gas 20% 10% 10% 10% 10% 0% 0% Q2'13 Q2'14 Q2'13 Q2'14 6 Interim presentation 2nd quarter 2014
Changes in Oil and Gas g • Reduced activity in Statoil • Many opportunities connected to new players on the shelf – Experience from Statoil proves valuable 7 Interim presentation 2nd quarter 2014
Trust from public sector p Norwegian Armed Forces Norwegian Armed Forces • Second largest customer of Bouvet • Frame agreement extended by one year The Norwegian National Collection Agency The Norwegian National Collection Agency • Maintenance and further development (5+1+1 years) • Total value approx. NOK 100 million New orders within professional systems • Municipality of Oslo • Municipality of Trondheim New frame agreements • Municipality of Bergen: Information security • H Hordaland county authority: Web-solutions d l d t th it W b l ti 8 Interim presentation 2nd quarter 2014
Growth within Health Care 9 Interim presentation 2nd quarter 2014
Business systems on all platforms y p New customer in the transport sector New customer in the transport sector • Ordered a full ERP-system with mobile clients for all drivers Viking Redningstjeneste Viking Redningstjeneste • Ordered a new mobile solution for their drivers • Long-term customer Statkraft • Implemented a new mobile solution to support the maintenance of power plants • Long-term customer Long term customer 10
Growth within Digital Communication g Skjermbilde fra VM 2016 Skiskyting World Championship Biathlon 2016 DNV GL New TV player for NRK 11
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 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 Annual growth in number of employees Percentage 25% 20% 20% 15% 10% 5% 0% Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 12 Interim presentation 2nd quarter 2014
Regional organisation g g 57 57 60 349 Trondheim Sesam 13 13 Bergen Ørebro Stockholm Sandvika Oslo Haugesund 351 Sandefjord Stavanger Skien Kristiansand Arendal 4 45 Group management and staff: 19 Malmø 51 51 13 Interim presentation 2nd quarter 2014
Financial Review Financial Review
Key figures y g Three months ending Twelve months ending MNOK 30.06.2014 30.06.2013 30.06.2014 30.06.2013 Change % Change % 276.2 284.3 -2.8 % 1 124.5 1 063.1 5.8 % Operating revenue Operating profit (EBIT) 23.6 28.5 -16.9 % 95.0 79.0 20.2 % EBIT margin EBIT margin 8 6 % 8.6 % 10 0 % 10.0 % 8 4% 8.4% 7.4 % 7 4 % 13.7 % 13 7 % Ordinary profit before tax 24.2 28.7 -15.8 % 97.2 80.9 20.1 % 17.5 20.8 -15.7 % 69.2 57.3 20.8 % Profit for the period EPS (fully diluted) EPS (f ll dil t d) 1 65 1.65 1 97 1.97 -16.5 % 16 5 % 6 72 6.72 5 53 5.53 21 5 % 21.5 % Net cash flow operations 18.0 -2.2 N/A 118.1 70.4 67.8 % Equity ratio 34.5 % 32.8 % 34.5 % 32.8 % Cash and cash equivalents 98.0 55.6 76.1 % 98.0 55.6 76.1 % Number of employees (end of period) 945 894 5.7 % 945 894 5.7 % Number of employees (average) 946 893 6.0 % 930 880 5.7 % 15 Interim presentation 2nd quarter 2014
Top line slightly reduced p g y • Revenues decreased by 2.8 Revenue split (quarterly figures) MNOK MNOK percent y-o-y t 350 Own consultants – Revenues from own consultants 300 Sub-contracted consultants down 0.9 percent to NOK 228.7 250 Other 200 million million 150 – Revenues from sub-contracted 100 50 consultants reduced by 14.1 0 percent to NOK 34.5 million Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 – Sub-contracted consultants’ share Revenue split (12 months rolling average) of revenues was 12.5 percent, MNOK down from 14.1 percent in Q2’13 1200 Own consultants Sub-contracted consultants 1000 1000 • Billi Billing rate decreased 3.0 t d d 3 0 Other 800 percentage points from Q2’13 600 400 • Prices for group hourly services 200 increased 2 8 percent from Q2’13 increased 2.8 percent from Q2’13 0 Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 16 Interim presentation 2nd quarter 2014
Reduced earnings g • Operating profit decreased y-o-y in EBIT and EBIT margin MNOK and Percent 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 20 • Operating expenses decreased by 5% 10 1.3 percent compared to Q2’13 0 0% Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 • Other operating expenses Other operating expenses increased 1.7 percent EBIT and EBIT margin (12 months rolling) MNOK and Percent • 59 workdays in Q2’14 – one less 120 EBIT EBIT margin 15% than in Q2 13 than in Q2’13 100 100 80 10% 60 40 5% 20 - 0% Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 17 Interim presentation 2nd quarter 2014
Solid cash flow • Cash flow from operations Cash flow from operations (per quarter) MNOK MNOK – Positive NOK 18.0 million in Q2’14, 120 up from NOK negative 2.2 million in 100 80 Q2’13 60 40 40 – Positively affected by changes in 20 0 accounts receivable and paid tax -20 -40 • Rolling 12 months g Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 Cash flow from operations (LTM) – Operational cash flow over the last MNOK 12 months was NOK 118.1 million 140 120 100 80 60 40 20 0 Q2'09 Q2'10 Q2'11 Q2'12 Q2'13 Q2'14 18 Interim presentation 2nd quarter 2014
Creating shareholder value g Investment Calculator NOK and number of shares NOK and number of shares Value of NOK 16,234 20,000 300 Value Number of shares 18,000 280 16,000 260 14,000 240 12,000 220 10,000 10 000 200 200 8,000 180 Investment of 6,000 160 NOK 4,000 4 000 4,000 140 140 2,000 120 0 100 May-07 May-08 May-09 May-10 May-11 May-12 May-13 May-14 Compound Annual Growth Rate of 22 percent 19 Interim presentation 2nd quarter 2014
Outlook Outlook
Outlook and summary y • Cost cut within Oil and Gas • Continued strong focus on digitalization in all sectors • • Increased competition will Increased competition will challenge profitability • Strong adaptability opens for f further growth and improved th th d i d profitability in the long term 21 Interim presentation 2nd quarter 2014
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