Multiconsult

Earnings Release • May 5, 2021

FIRST QUARTER 2021 RESULTS

Grethe Bergly, CEO | Hans-Jørgen Wibstad, CFO

Date: 5 May 2021

DISCLAIMER

This report includes forward-looking statements, which are based on our current expectations and projections about future events. All statements other than statements of historical facts included in this notice, including statements regarding our future financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations, including our plans for future costs savings and synergies may be deemed to be forward-looking statements. Words such as "believe," "expect," "anticipate," "may," "assume," "plan," "intend," "will," "should," "estimate," "risk" and similar expressions or the negatives of these expressions are intended to identify forwardlooking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. You should not place undue reliance on these forward-looking statements. In addition, any forward-looking statements are made only as of the date of this notice, and we do not intend and do not assume any obligation to update any statements set forth in this report.

INTRODUCTION AND HIGHLIGHTS GRETHE BERGLY | CEO

Highlights | 1Q 2021

Highlights

• A good start to 2021 with solid results
• Successful nextLEVEL programme completed
• Solid sales and all-time high order backlog
• Strong employee commitment. Modest impact of the Covid-19 situation, but creating some uncertainty
• Delivering innovative and sustainable solutions to our customers and partners
• Stable market outlook in all major business areas, but still some short-term uncertainty
• Strengthening the work on sustainability

Highlights | SUSTAINABILITY (ESG)

ORGANISATION

HEIKKI HOLMÅS, CSO IN MULTICONSULT

Heikki Holmås is appointed CSO in Multiconsult. He started in the new position 1 May 2021.

CIRCULARITY

STRATEGIC PLAN FOR CIRCULARITY, OSLO

Multiconsult is engaged by the Waste Management and Recycling Agency in Oslo to provide a professional basis for a strategic plan for circular economy in Oslo.

NORWAY'S LARGEST GROUND-MOUNTED SOLAR PARK

The solar panels collect solar energy from both the top and the bottom, follow the sun's movements and utilize the reflections from the snow. This is the first time such a facility has been established in Norway.

PROJECTS

Photo: Alexander Ottesen Photo: ROAF Photo: Karl-Jørgen Kristiansen

THE WORLD'S LARGEST ALL-ELECTRIC FERRY PUT INTO SERVICE

Multiconsult has assisted Siemens Energy and Bastø Fosen with the design of infrastructure for charging and repair of quay facilities. The ferry operates between Moss-Horten.

Order intake | 1Q 2021

Cities & Society Oil & Gas

Highlights

• Significant or strategically important contracts awarded this quarter
  • Frame agreement for Statens vegvesen
  • NOAKA Power from shore
  • Technical support for Solidarity Transport Hub in Poland
  • Region Hovedstaden (Center For Ejendomme) LINK arkitektur (DK)
• Order intake up 5.8% y-o-y, to NOK 1 381 million
• Opportunities in the pipeline are at a good level

Key order intake in the quarter (sales)

• E6 Moelv Roterud
• Granåsen (sports arena)
• Northern Lights CCS
• Bicycle path Fløen Kronstad
• E16 Åsbygda Olum

Order backlog | 1Q 2021

Organisation & People

• 2 926 employees as of 31 March 2021
• Strong commitment and contribution to the turnaround process
• The Lidl store in Visby as the winner of the prestigious Building of the Year 2021 award, in the industry / store category. LINK Arkitektur
• Deichman Library, Oslo named library of the year
• Heikki Holmås appointed as Chief Sustainability Officer (CSO)

• Covid-19, planning the future way of working

Torvbråten School, Asker | Photo: Hundven-Clements Photography

State of the Nation 2021 | Maintenance lag (Norway)

Total need for upgrading and maintenance = NOK 3 200 billion

Source: RIF- State of the nation 2021 Figures in NOK billion

FINANCIAL REVIEW HANS-JØRGEN WIBSTAD | CFO

Financial Highlights | 1Q 2021

• Net operating revenues NOK 979.0 million
• EBIT of NOK 98.5 million, 10.1% margin
  • Compared to the first quarter 2020 a calendar effect of four less working days in Norway, have an impact of estimated NOK 56.4 million.
• Other operating expenses of NOK 99.7 million a y-o-y reduction of 9.3%
• Other opex* ratio reduced to 14.6% from 15.3% same period last year
• Improved billing ratio 71.1%, up 1.7pp from last year
• Solid order intake of NOK 1 381 million (NOK 1 306 million)
• All-time high order backlog of NOK 3 580 million

Consolidated key figures NOK million	1Q 2021	1Q 2020	Change	FY 2020
Net Operating Revenues	979.0	993.6	(1.5 %)	3 660.9
EBIT	98.5	117.5	(16.1 %)	371.0
EBIT margin %	10.1 %	11.8 %	(1.7 pp)	10.1 %
Adjusted EBIT	98.5	117.5	(16.1 %)	401.0
Adjusted EBIT margin	10.1 %	11.8 %	(1.7 pp)	11.0 %
Order intake	1 381	1 306	5.8 %	4 684
Order Backlog	3 580	3 099	15.5 %	3 327
Billing ratio	71.1 %	69.4 %	1.7 pp	70.9 %
Number of employees	2 926	2 984	(1.9 %)	2 925

Financial Highlights | 1Q 2021

Number of employees

Segments

• Region Oslo
• Region Norway
• Energy
• International
• LINK arkitektur

Region Oslo | 1Q 2021

• Net operating revenues NOK 311.6 million
• EBIT was NOK 40.5 million reflecting an EBIT margin of 13.0%
• Reduced other operating expenses for the period, a y-o-y reduction of 7.6%
• Billing ratio 73.0%, up 0.1pp y-o-y
• Order intake NOK 463.8 million, increase of 37.4% y-o-y

Region Oslo NOK million	Q1 2021	Q1 2020	Change	FY 2020
Net operating revenues	311.6	329.6	(5.5%)	1 175.7
EBIT	40.5	57.7	(29.9%)	186.1
EBIT margin %	13.0%	17.5%	(4.5pp)	15.8%
Order intake	463.8	337.5	37.4%	1 573
Order backlog	1 367	985.1	38.8%	1 256
Billing ratio	73.0%	72.9%	0.1pp	73.4%
Number of employees	770	796	(3.3%)	769

Region Norway | 1Q 2021

• Net operating revenues NOK 390.7 million
• EBIT was NOK 45.7 million reflecting an EBIT margin of 11.7%
• Reduced other operating expenses for the period, a y-o-y reduction of 10.4%
• Billing ratio 69.3%, up 2.7pp y-o-y
• Order intake NOK 634.1 million, compared to a strong quarter last year a decrease of 19.7% y-o-y

Region Norway NOK million	Q1 2021	Q1 2020	Change	FY 2020
Net operating revenues	390.7	391.0	(0.1%)	1 449.8
EBIT	45.7	42.9	6.5%	184.0
EBIT margin %	11.7%	11.0%	0.7pp	12.7%
Order intake	450.5	561.4	19.7%	1 557
Order backlog	634.1	732.7	13.5%	597.6
Billing ratio	69.3%	66.6%	2.7pp	69.9%
Number of employees	1 035	1 065	(2.8%)	1 033

Energy | 1Q 2021

• Net operating revenues of NOK 61.5 million
• EBIT was NOK 0.5 million reflecting an EBIT margin of 0.8%
• Reduced other operating expenses for the period, a y-o-y reduction of 13.3%
• Billing ratio up 3.9pp y-o-y, to 63.3%
• Uncertainty in international Energy market, due to factors related to Covid-19

Energy NOK million	1Q 2021	1Q 2020	Change	FY 2020
Net operating revenues	61.5	69.5	(11.5%)	248.8
EBIT	0.5	3.5	(85.0%)	6.8
EBIT margin %	0.8%	5.0%	(4.1pp)	2.7%
Order intake	97.9	88.7	10.4%	334.2
Order backlog	322.4	263.8	22.2%	295.1
Billing ratio	63.3%	59.4%	3.9pp	61.3%
Number of employees	181	199	(9.0%)	186

LINK arkitektur | 1Q 2021

• Revenues up 1.1% y-o-y, to NOK 152.6 million
• EBIT was NOK 5.5 million reflecting an EBIT margin of 3.6%
• Billing ratio up 1.6pp y-o-y, to 74.9%
• Order intake of NOK 171.8 million, and order backlog 7.8% higher than the same period last year
• The performance in LINK arkitektur Norway is at a good level

LINK arkitektur NOK million	Q1 2021	Q1 2020	Change	FY 2020
Net operating revenues	152.6	151.0	1.1%	561.6
EBIT	5.5	6.7	(18.9%)	25.7
EBIT margin %	3.6%	4.5%	(0.9pp)	4.6%
Order intake	171.8	153.5	11.9%	745.2
Order backlog	621.7	576.9	7.8%	637.7
Billing ratio	74.9%	73.4 %	1.6pp	73.6%
Number of employees	482	497	(3.0%)	487

International | 1Q 2021

• Net operating revenues of NOK 61.5 million
• EBIT was NOK 5.1 million reflecting an EBIT margin of 8.3%
• Order intake up 19.7% y-o-y, to NOK 196.8 million
• High activity and increased manning level in both Multiconsult Polska and Iterio AB
• Reduced other operating expenses for the period, a y-o-y reduction of 21.7%

International NOK million	1Q 2021	1Q 2020	Change	FY 2020
Net operating revenues	61.5	61.2	0.4%	242.5
EBIT	5.1	6.5	(21.5%)	24.8
EBIT margin %	8.3%	10.6%	(2.3pp)	10.2%
Order intake	196.8	164.5	19.7%	474.6
Order backlog	689.1	566.9	21.6%	586.8
Billing ratio	76.2%	78.5%	(2.3pp)	74.9%
Number of employees	330	308	7.1%	321

Operating revenues by business area | 1Q 2021

Financial Position | 1Q 2021

^*Shaded areas show IFRS 16 (non-cash) effects on CF from operations-, working capital- and financing

• Solid cash generation last 12 month (LTM)
  • Net debt improved by NOK 407.9 million LTM
• Strong Balance Sheet position, net debt free
  • Total undrawn loan facilities NOK 520 million
• Change in working capital negative NOK 56.4 million

nextLEVEL

1Q | 2021

nextLEVEL profitability improvements exceeds target | 1Q 2021

nextLEVEL Cost Out and Operations detailed | 1Q 2021

Outlook

• Positive development through the on-going turnaround process
• All-time high order backlog
• Solid market position, strong competence and leading customer solutions provides a good foundation going forward
• Overall good market outlook and tender pipeline in most business areas
  • The pandemic continues to create uncertainty
  • The revised National Transportation Plan in Norway indicates a steady portfolio of infrastructure projects in the medium and long term

	FINANCIAL CALENDAR

2Q 2021	18 Aug 2021
3Q 2021	3 Nov 2021

Q&A FIRST QUARTER 2021 RESULTS

GRETHE BERGLY & HANS-JØRGEN WIBSTAD