Bouvet

Investor Presentation • May 23, 2023

INTERIM PRESENTATION FIRST QUARTER 2023

23 MAY 2023

Per Gunnar Tronsli, CEO Trude Hole, CFO

Highlights in the quarter

Revenue and EBIT

• Operating revenues increased by 16.5 percent to NOK 945.1 million (y-o-y)
• EBIT increased by 7.2 percent to NOK 131.6 million (y-o-y)

2 111 employees

• Up 70 from Q4'22
• An increase of 232 in the past 12 months

Number of employees

Our vision

We lead the way and build tomorrow's society.

Sharing culture

• Knowledge and competence has never been more important
• BouvetOne our internal conference for knowledge sharing
• Awards and recognition
• Learning experiences from customer assignments

New record for our training business

• All time high in Q1
• Offers a wide range of courses and breakfast meetings:
  • Technical courses
  • Artificial intelligence
  • Low-code
  • Security
  • Innovation and sustainability
  • Agile development

Corporate Digital Responsibility (CDR)

Principles:

• 1. Purpose and trust
• 1. Fair and equitable access for all
• 1. Promote social wellbeing
• 1. Consider economic and societal impact
• 1. Accellerate progress with impact economy
• 1. Creating a sustainable planet
• 1. Reduce tech impact on climate and environment

OPERATIONAL REVIEW

Public and private sector

Business sectors

Norwegian Defence Materiel Agency

• Renewed trust
• Building on many years of collaboration
• Bouvet will provide application and integration services to the Norwegian Armed Forces and Norwegian Defence Materiel Agency
• Development and customization of new and existing applications and integration solutions.
• Deliveries within all our service areas

Stortinget

• Bouvet strategic digitalisation partner
• Interdisciplinary teams
  • Develop new sourcing strategy
  • Identity management
  • Concept development for technical solutions
  • Establishing a solid information architecture

Bybanen

• Long term relationship
• Developed services to derive value from data
• Integrating sensor data to monitor conditions of tram cars
• Enabling advanced analytics and predictive maintenance

Bane NOR

• Responsible for driving-related applications for train operation
• Provides traffic information from Bane NOR to trainoperators and travelers
• Energy accounting solution implemented in 9 European countries
• Bane NOR is to renew all signal systems covering 4000 kilometers of railway and 300 stations.

The four largest sectors

Oil & gas *

• Increased by 31.8 percent (y-o-y)
• Represents 38.8 percent of total revenues in Q1'23

Public admin

• Increased by 1.4 percent (y-o-y)
• Represents 17.2 percent of total revenues in Q1'23

Power supply

• Increased by 16.1 percent (y-o-y)
• Represents 16 percent of total revenues in Q1'23

Service industry

• Increased by 27.3 percent (y-o-y)
• Represents 5.6 percent of total revenues in Q1'23

Customer mix

Customer portfolio

• The 10 largest customers represent 61.3 percent of total revenues – up from 55.2 percent in Q1'22
• The 20 largest customers represent 70.9 percent of total revenues – up from 63.5 percent in Q1'22

0% 10% 20% 30% 40% 50% 60% 70% Percentage

10 largest customers share of revenues

Q1'19 Q1'20 Q1'21 Q1'22 Q1'23

Customer development

Existing customers*

• Accounted for 97 percent of revenues in Q1'23

New customers**

• Customers won over the past year generated revenues of NOK 28.1 million in Q1'23

Enthusiastic and highly competent employees

2 111 employees at the end of the quarter

• Up 70 from Q4'22
• 232 more employees in the past 12 months
• Average number of employees in the quarter up 9.8 percent from Q1'22

Number of employees end of quarter

Annual growth in number of employees

FINANCIAL REVIEW

Key figures

MNOK	Three months ending			Twelve months ending
	31.03.2023	31.03.2022	Change	31.03.2023	31.03.2022	Change
Operating revenue	945.1	811.1	16.5 %	3 219.4	2 810.4	14.6 %
Operating profit (EBIT)	131.6	122.8	7.2 %	410.5	372.0	10.4 %
EBIT margin	13.9 %	15.1 %		12.8 %	13.2 %
Ordinary profit before tax	133.7	121.9	9.7 %	412.8	367.8	12.2 %
Profit for the period	104.7	95.5	9.6 %	327.2	291.9	12.1 %
EPS (fully diluted)	1.00	0.91	9.8 %	3.11	2.80	11.1 %
Net cash flow operations	138.8	90.0	54.3 %	370.2	362.6	2.1 %
Equity ratio	32.7 %	32.4 %		32.7 %	32.4 %
Liquid assets	533.3	568.8	-6.2 %	533.3	568.8	-6.2 %
Number of employees (end of period)	2 111	1 879	12.3 %	2 111	1 879	12.3 %
Number of employees (average)	2 055	1 871	9.8 %	1 994	1 810	10.2 %

Revenue

Revenues increased by 16.5 percent y-o-y

• Revenues from own consultants increased by 18.4 percent to NOK 826.9 million
• Revenues from sub-contracted consultants increased by 11.5 percent to NOK 101.8 million
• Other revenues decreased by 22.9 percent to NOK 16.4 million

Revenue split (quarterly figures)

Revenue split (12 months rolling average)

Revenues from own consultants

Increased 18.4 percent y-o-y

• Positive impact from 9.8 percent increase in average number of employees
• Positive impact from 7.8 percent increase in price for group hourly services
• Negative impact from decrease in billing ratio by 3.1 percentage points
• 65 workdays in Q1'23 64 workdays in Q1'22

Revenue per employee (LTM)

Analysis of change in revenues y-o-y

Earnings

• Operating profit (EBIT) increased by 7.2 percent to NOK 131.6 million
• EBIT margin of 13.9 percent compared to 15.1 percent in Q1'22
• Operating expenses increased by 18.2 percent y-o-y
• General growth in pay rate 0.7 percent y-o-y

EBIT and EBIT margin (LTM)

Other operating expenses

Increased 55.7 percent y-o-y

• Travel, courses, recruitments and social events increased by 99.8 percent to NOK 29 million
• Other costs increased by 34.2 percent to NOK 39.8 million

Other OpEx split (quarterly figures)

Change in revenues – effect on EBIT

Cash flow

Cash flow from operations

• NOK 138.8 million in Q1'23 compared to NOK 90 million in Q1'22

Cash flow last 12 months

• Operational cash flow over the last 12 months was NOK 370.2 million

Cash flow from investing activities

• Negative NOK 15.9 million compared to negative NOK 12.9 million in Q1'22

Cash flow from operations (per quarter)

OUTLOOK

Outlook summary

• Main drivers for digitalisation

• Energy transformation
• Security situation
• Data-driven transformation
• Demographic change
• Rapid technological development
• Demand for services in:
  • Application development
  • Security
  • Low-code
  • Change management
• Uncertainty over the economic situation

APPENDIX

Interim presentation First quarter 2023

Shareholders as of 23.05.2023

Shareholders	Number of shares	% of total
FOLKETRYGDFONDET	7 263 678	7,00 %
VARNER KAPITAL AS	6 051 000	5,83 %
VERDIPAPIRFOND ODIN NORDEN	5 807 586	5,59 %
STENSHAGEN INVEST AS	5 366 990	5,17 %
The Bank of New York Mellon (nominee acc.)	4 574 063	4,41 %
HURUM SVERRE FINN	3 579 060	3,45 %
MP PENSJON PK	2 650 820	2,55 %
VERDIPAPIRFONDET NORDEA AVKASTNING	2 411 393	2,32 %
VEVLEN GÅRD AS	1 828 020	1,76 %
STUBØ ERIK	1 313 250	1,27 %
UBS Switzerland AG (nominee acc.)	1 281 296	1,23 %
VERDIPAPIRFOND ODIN NORGE	1 270 570	1,22 %
CLEARSTREAM BANKING S.A. (nominee acc.)	1 250 846	1,21 %
MONTANARO SMALLER COMPANIES PLC	1 250 000	1,20 %
MUSTAD INDUSTRIER AS	1 250 000	1,20 %
VERDIPAPIRFONDET NORDEA NORGE PLUS	1 230 866	1,19 %
VERDIPAPIRFONDET NORDEA KAPITAL	1 213 587	1,17 %
The Bank of New York Mellon (nominee acc.)	1 108 995	1,07 %
VERDIPAPIRFONDET FIRST VERITAS	1 100 000	1,06 %
State Street Bank and Trust Comp (nominee acc.)	1 060 338	1,02 %
Number of shares held by the 20 largest shareholders	52 862 358	50,93 %