Bouvet

Investor Presentation • Aug 25, 2021

1

Interim presentation Second quarter 2021

25 August 2021

Per Gunnar Tronsli, CEO Trude Hole, CFO

Highlights in the quarter

• Revenue and EBIT

• Operating revenues increased by 13.4 percent to NOK 676 million (y-o-y)
• EBIT decreased by 1.6 percent to NOK 83.8 million (y-o-y)

• 1 748 employees

• Up 64 from Q1'21
• An increase of 154 in the past 12 months

Revenue and number of employees

MNOK and number

Bouvet's vision

We lead the way and build tomorrow's society

Long-term goals

Client-oriented and long-term relations Best workplace Successful business

Operational Review

Public and private sector

Business sectors Q2 2021

MED.hjelper – service innovation in the health sector

Source: medhjelper.com

BarentsWatch provides services for Norwegian coastal and marine areas

• BarentsWatch collects, develops and shares information about Norwegian coastal and marine areas.
• BarentsWatch services:
• ArcticInfo for seafarers in the far north, from Svalbard to Greenland
• wave warnings for passenger ships and leisure craft
• sustainability in aquaculture, with facts on salmon farming and the environment, economics and society
• FiskInfo for commercial fishermen
• fish health for aquaculture and public administration.
• Bouvet provides a multidisciplinary team covering design, development, security, operation, process and project management.
• Bouvet's contract has been renewed for a further four years.

Bouvet is helping Equinor to redefine operations and maintenance (O&M) for its accelerated growth in offshore wind power, including the world's largest offshore wind farms.

The ambition is to significantly "move the needle" in O&M excellence – efficient and effective operations focusing on day-to-day revenue, long turbine lifetimes and safety.

Carbon capture in Grenland – Norway's biggest climate measure

• Bouvet is the digitalisation partner for an industrial project which aims to capture 1.2 million tonnes of CO² annually from industry in the Grenland region
• Front-end study project to prepare the ground for Norway's largest climate measure
• Bouvet's contribution involves developing management, maintenance and digital production systems
• The first CCS project in Norway, which has a strong digital side

Bouvet training

• Customer-specific training accounted for 40% of course revenue
• Particular demand for:
• introductory programmes covering flexible methodologies for large organisations
• methodologies for innovation and development of services
• design thinking - for innovation and thinking along new lines in the public sector
• digital leadership – leadership in a new era
• courses which explain how Teams and Office 365 can make the working day easier and more efficient .
• More than 3 000 participants in webinars and breakfast seminars

The four largest sectors

Oil & gas

• Increased by 22.6 percent (y-o-y)
• Represents 29 percent of total revenues in Q2'21

Public admin

• Increased by 1.7 percent (y-o-y)
• Represents 23.4 percent of total revenues in Q2'21

Power supply

• Increased by 25.1 percent (y-o-y)
• Represents 17.2 percent of total revenues in Q2'21

Info and communication

• Increased by 15.2 percent (y-o-y)
• Represents 5.5 percent of total revenues in Q2'21 Forsvaret

Customer and project mix

Project mix

• Variable contracts account for 99.3 percent of total revenues

Customer portfolio

• The 10 largest customers represent 50.6 percent of total revenues – up from 45 percent in Q2'20
• The 20 largest customers represent 58.6 percent of total revenues – up from 55.6 percent in Q2'20

Variably priced contracts share of revenues

10 largest customers share of revenues

Customer development

Existing customers*

• Accounted for 94.5 percent of revenues in Q2'21

New customers**

• Customers won over the past year generated revenues of NOK 37.3 million in Q2'21

* 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

500 600 700 800 MNOK

0

100

200

300

400

Making those systems talk

Business platform partners

OEM partners

Delivers industry specific solutions standardized and highly specialized for their domain

Implementation partners

Utilizing standard components and architecture to effectively build prefabricated, customer tailored, platforms

Enthusiastic and competent employees

1 748 employees at the end of the quarter

• Up 64 from Q1'21
• 154 more employees in the past 12 months
• Average number of employees in the quarter up 8.6 percent from Q2'20

Number of employees end of quarter

Annual growth in number of employees

Financial Review

Key figures

MNOK	Three months ending				Six months ending			Twelve months ending
	30.06.2021 30.06.2020		Change	30.06.2021	30.06.2020		30.06.2021 30.06.2020		Change
Operating revenue	676.0	596.1	13.4 %	1 371.9	1 237.3	10.9 %	2 536.4	2 286.7	10.9 %
Operating profit (EBIT)	83.8	85.2	-1.6 %	174.6	167.8	4.1 %	321.4	271.7	18.3 %
EBIT margin	12.4 %	14.3 %		12.7 %	13.6 %		12.7 %	11.9 %
Ordinary profit before tax	82.7	84.0	-1.5 %	172.0	167.1	2.9 %	316.6	267.5	18.4 %
Profit for the period	64.5	65.5	-1.6 %	133.9	130.2	2.9 %	244.9	210.5	16.3 %
EPS (fully diluted)	0.62	0.63	-2.1 %	1.29	1.26	2.3 %	2.36	2.04	15.7 %
Net cash flow operations	42.1	163.8	-74.3 %	63.7	210.9	-69.8 %	303.6	451.5	-32.8 %
Equity ratio	27.2 %	30.1 %		27.2 %	30.1 %		27.2 %	30.1 %
Liquid assets	377.2	436.3	-13.5 %	377.2	436.3	-13.5 %	377.2	436.3	-13.5 %
Number of employees (end of period)	1 748	1 594	9.7 %	1 748	1 594	9.7 %	1 748	1 594	9.7 %
Number of employees (average)	1 721	1 585	8.6 %	1 698	1 577	7.7 %	1 670	1 554	7.4 %

Revenue

Revenues increased by 13.4 percent y-o-y

• Revenues from own consultants increased by 15.2 percent to NOK 574.9 million
• Revenues from sub-contracted consultants increased by 1.7 percent to NOK 83.2 million
• Other revenues increased by 17.9 percent to NOK 17.9 million

Revenue split (12 months rolling average)

Revenues from own consultants

Increased 15.2 percent y-o-y

• Positive impact from 8.6 percent increase in average number of employees
• Positive impact from 0.6 percent increase in price for group hourly services
• Positive impact from increase in billing ratio by 2.2 percentage points
• 59 workdays in Q2'21 equal to Q2'20

Revenue per employee (quarterly figures)

Analysis of change in revenues y-o-y

Earnings

• Operating profit (EBIT) decreased by 1.6 percent to NOK 83.8 million
• EBIT margin of 12.4 percent compared to 14.3 percent in Q2'20
• Operating expenses increased by 15.9 percent y-o-y
• General growth in pay rate 3.6 percent y-o-y
• Covid-19 effects reduced
• Negative impact from increased costs related to software, recruitment and social events

EBIT and EBIT margin

EBIT and EBIT margin (LTM)

MNOK and Percent

Change in revenues – effect on EBIT

25

Cash flow

• Cash flow from operations
• NOK 42.1 million in Q2'21 compared to NOK 163.8 million in Q2'20
• Cash flow last 12 months
• Operational cash flow over the last 12 months was NOK 303.6 million
• Cash flow from investing activities
• Negative NOK 7.5 million compared to negative NOK 4.5 million in Q2'20

Cash flow from operations (LTM)

Outlook

Outlook summary

• Workday post-covid
• Focus on digital transformation:
• Public sector
• Energy sector
• Oil and gas sector
• High demand for cross-functional teams
• High demand for:
• System development
• Cloud and platform services
• Security
• Digital collaboration
• Project management
• Change management and innovation
• High focus on talent management and recruitment

Appendix

Shareholders as of 25.08.2021

Shareholders	Number of shares	% of total
The Bank of New York Mellon	8 376 981	8,14 %
FOLKETRYGDFONDET	7 549 300	7,34 %
VARNER KAPITAL AS	6 591 000	6,41 %
STENSHAGEN INVEST AS	5 366 990	5,22 %
VERDIPAPIRFOND ODIN NORDEN	4 512 150	4,39 %
SVERRE FINN HURUM	3 609 060	3,51 %
VERDIPAPIRFONDET NORDEA AVKASTNING	2 822 033	2,74 %
MP PENSJON PK	2 650 820	2,58 %
VERDIPAPIRFONDET FIRST VERITAS	2 286 847	2,22 %
ERIK STUBØ	2 052 920	2,00 %
VERDIPAPIRFONDET NORDEA KAPITAL	1 997 290	1,94 %
VEVLEN GÅRD AS	1 628 020	1,58 %
VERDIPAPIRFONDET NORDEA NORGE PLUS	1 322 750	1,29 %
UBS Switzerland AG	1 272 057	1,24 %
VERDIPAPIRFOND ODIN NORGE	1 270 570	1,24 %
State Street Bank and Trust Comp	1 105 550	1,07 %
ANDERS ERIKSEN-VOLLE	998 300	0,97 %
TELENOR PENSJONSKASSE	900 000	0,87 %
VERDIPAPIRFONDET KLP AKSJENORGE INDEKS	848 267	0,82 %
MUSTAD INDUSTRIER AS	800 000	0,78 %
Number of shares held by the 20 largest shareholders	57 960 905	56,35 %