Multiconsult

Earnings Release • Nov 6, 2024

Multiconsult third quarter result 2024 - very strong quarter

Multiconsult third quarter result 2024 - very strong quarter

Multiconsult ASA (OSE: MULTI)

Multiconsult delivered a very strong quarter, continuing the positive momentum.

EBITA came in at NOK 102.9 million (29.2), equal to an EBITA margin of 9.0 per

cent. The performance was influenced by high activity, with a billing ratio of

71.2 per cent, 3.4 percentage points higher than the comparable quarter last

year. Net operating revenues grew by 17.5 per cent to NOK 1 148.4 million, the

organic revenue growth was 15.9 per cent adjusted for the calendar effect. There

was an impact of one more working day compared to the same period last year,

with an estimated negative effect of NOK 6.1 million on net operating revenues

and EBITA. The order intake was NOK 1 277 million resulting in an order backlog

of NOK 4 838 million. During the quarter, Multiconsult resolved a contractual

dispute with a client, resulting in a settlement payment of NOK 31.2 million,

which is reflected in the group results.

THIRD QUARTER 2024

· Very strong quarter, driven by robust operational performance and high

activity

· Net operating revenues increased by 17.5 per cent to NOK 1 148.4 million

(977.0)

· The organic revenue growth adjusted for the calendar effect was 15.9 per

cent

· EBITA of NOK 102.9 million (29.2), equal to an EBITA margin of 9.0 per cent

(3.0)

· Net operating revenues and EBITA impacted negatively by NOK 6.1 million

from the calendar effect compared with third quarter 2023

· EBITA adjusted for one-offs was NOK 71.7 million (29.2), equal to an EBITA

margin of 6.4 per cent (3.0)

· Net operating revenues and EBITA impacted by a one-time settlement payment

from client of NOK 31.2 million related to a contractual dispute

· Significantly improved billing ratio of 71.2 per cent (67.8), up 3.4pp

· Order intake of NOK 1 277 million (1 349)

· Order backlog of NOK 4 838 million (5 094)

· Full-time equivalents (FTE) increased by 2.1 per cent, to 3 541 (3 469)

· Net profit of NOK 80.2 million (9.6)

· Earnings per share NOK 2.95 (0.40)

· The overall market outlook remains good and stable

YEAR TO DATE 2024

· Net operating revenues of NOK 3 940.3 million (3 441.0), a y-o-y growth of

14.5 per cent

· The organic revenue growth adjusted for the calendar effect was 12.2 per

cent

· EBITA of NOK 425.4 million (301.1), equal to an EBITA margin of 10.8 per

cent (8.8)

· Net operating revenues and EBITA impacted negatively by NOK 27.2 million

from the calendar effect compared with same period 2023

· EBITA adjusted for one-offs was NOK 394.1 million (301.1), equal to an EBITA

margin of 10.1 per cent (8.8)

· Net operating revenues and EBITA impacted by a one-time settlement payment

from client of NOK 31.2 million related to a contractual dispute

· Order intake of NOK 4 655 million (5 495)

· Net profit of NOK 323.7 million (203.7)

· Earnings per share 11.83 (7.46)

· Full-time equivalents (FTE) increased by 6.0 per cent, to 3 540 (3 340)

EXTRACT OF COMMENTS FROM CEO, GRETHE BERGLY:

Multiconsult delivered a very strong quarter, continuing the positive momentum.

A continued high billing ratio throughout this quarter attests to the elevated

activity levels across the organisation and in all business areas. We continue

to achieve impressive results driven by robust operational

performance and high activity levels in many of our large projects. I would like

to express my gratitude to all our employees for their contributions to these

results.

Three years into the strategy period, we have seen significant changes in our

surroundings and macro-economic situation, which have also impacted our client

base. In light of this, we have updated our strategy, and this will be presented

in the Capital Markets Day presentation following the presentation of the third

quarter results.

We continue to experience strong demand for our services, there are however

variations in the market situation across geographical locations and business

areas. With the ongoing geopolitical challenges, our strong references related

to the defence sector is creating new business opportunities and we are well

positioned for the increase in activities, both within the sector and to all

services related to this market. It is a significant achievement that

Multiconsult, at the start of November, was awarded a NOK 450 million framework

agreement with the Norwegian Defence Estates Agency (NDEA) (Forsvarsbygg).

Looking ahead, Multiconsult is in a strong position to handle a changing market

and support our clients' needs. Our solid order backlog, focus on

sustainability, and growth in key areas position us well for future

opportunities. With our dedicated teams and strong foundation, I am confident we

will continue to build on our success.

For a full review of comments from CEO, please refer third quarter 2024 interim

report.

FINANCIAL REVIEW, THIRD QUARTER 2024:

Net operating revenues amounted to NOK 1 148.4 million (977.0), an increase of

17.5 per cent compared to the same quarter last year. The organic revenue growth

amounted to 15.9 per cent, adjusted for calendar effect and acquisition. The

increase in net operating revenues was driven by increased capacity, higher

billing rates, higher billing ratio and a one-time settlement payment from

client of NOK 31.2 million. The billing ratio exceeded last year's comparable

quarter by 3.4 percentage points, reaching 71.2 per cent (67.8). Higher

capacity, reflected by an increase in full-time equivalents (FTE) of 2.1 per

cent contributed positively.

Operating expenses consist of employee benefit expenses and other operating

expenses. Operating expenses increased by 10.7 per cent to NOK 984.7 million

(889.8) compared to the same quarter in 2023. Employee benefit expenses

increased by 10.4 per cent in line with ordinary salary adjustment, increased

staffing level from acquisitions, and increase in net recruitment. Other

operating expenses increased by 12.0 per cent to NOK 154.0 million (137.4),

primarily due to higher IT-cost and cost increase in general.

EBITDA was NOK 163.8 million (87.2), an increase of 87.8 per cent compared to

the same period last year, reflecting an EBITDA margin of 14.3 per cent (8.9) in

the quarter.

EBITA was NOK 102.9 million (29.2), an increase of 252.3 per cent year-over

-year, reflecting an EBITA margin of 9.0 per cent (3.0) in the quarter.

EBITA adjusted for one-offs was NOK 71.7 million, reflecting an EBITA margin of

6.4 per cent (3.0) in the quarter. One-off related to settlement payment of

contractual dispute of NOK 31.2 million.

Calendar effect: In the third quarter there was one more working day compared to

the third quarter of 2023, two additional days in July and one fewer day in

August 2024. This had an estimated negative impact of NOK 6.1 million on net

operating revenues and operating results. In connection with number of working

days in comparable periods Multiconsult uses alternative performance measures to

provide a better understanding of the group's underlying financial performance,

see last section of this report.

FINANCIAL REVIEW, YEAR TO DATE 2024:

Net operating revenues increased by 14.5 per cent to NOK 3 940.3 million (3

441.0). The organic revenue growth amounted to 12.2 per cent, adjusted for

calendar effect and acquisition. The increase in net operating revenues was

driven by increased capacity, reflected by an increase in full-time equivalents

(FTE) of 6.0 per cent, higher billing ratio, and higher billing rates. The

billing ratio increased to 72.9 per cent (70.4), an increase of 2.5 percentage

points.

Operating expenses consist of employee benefit expenses and other operating

expenses. Reported operating expenses increased by 12.1 per cent to NOK 3 334.5

million (2 973.3) compared to the same period last year. Employee benefit

expenses increased by 12.7 per cent and came in at NOK 2 869.5 million (2

545.3), an increase driven by net recruitment, regular salary adjustment and

employee benefit expenses arising from acquisitions. Other operating expenses

increased by 8.6 per cent to NOK 465.0 million (428.0), partly an effect of

operating expenses included from prior acquisitions and from cost increase in

general.

EBITDA was NOK 605.8 million (467.7), an increase of 29.5 per cent compared to

the same period last year, reflecting an EBITDA margin of 15.4 per cent (13.6).

EBITA was NOK 425.4 million (301.1), an increase of 41.3 per cent y-o-y,

reflecting an EBITA margin of 10.8 per cent (8.8).

EBITA adjusted for one-offs was NOK 394.1 million, reflecting an EBITA margin of

10.1 per cent (8.8) year to date. One-off related to settlement payment of

contractual dispute of NOK 31.2 million in the third quarter.

Calendar effect: As of year to date 2024, the average number of working days was

the same as in the corresponding period in 2023. However, due to variations in

working days within the months between the two years, there was an estimated

negative impact of NOK 27.2 million on net operating revenues and operating

results.

OUTLOOK

The overall market outlook remains good and stable, although there are notable

variations across sectors. Key markets are foreseen to maintain a positive

trend, despite signs of a slowdown in specific areas. Uncertainty surrounding

investment levels and political factors persists, but demand for key services -

particularly related to defence, infrastructure and sustainability projects

remains strong. The competitive landscape continues to evolve, with pricing and

margins for architectural and engineering services remaining sensitive and

variable. New opportunities are emerging, contributing to a generally favourable

pipeline. The outlook supports continued stability and consistent performance.

For a full review, please refer to third quarter and year to date 2024 report.

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Presentations today 6 November 2024:

Participants are invited to attend the Norwegian presentation that will be held

at Hotel Continental, Stortingsgata 24/26, Oslo, Norway at 08:30 (CEST). The

results will also be presented through a live webcast. Participants will have

the opportunity to submit questions online throughout the webcast sessions.

Third quarter result 2024: 6. November 08:30 CET

Live Webcast: https://channel.royalcast.com/landingpage/hegnarmedia/20241106_8/

Live webcast, complete report, presentation and a recording of the webcast will

also be available on https://www.multiconsult-ir.com and

https://newsweb.oslobors.no/

For further information, please contact:

Investor relations:

Ove B. Haupberg, CFO

Phone: +47 401 00 900

E-mail: oveb.haupberg@multiconsult.no

Media:

Gaute Christensen, VP Communications

Phone: +47 911 70 188

E-mail: gaute.christensen@multiconsult.no