Bouvet

Earnings Release • Feb 19, 2021

Interim presentation Fourth quarter 2020

19 February 2021

Per Gunnar Tronsli, CEO Erik Stubø, CFO

Highlights in the quarter

o Revenue and EBIT

• Operating revenues increased by 9.7 percent to NOK 645.6 million (y-o-y)
• EBIT increased by 28.3 percent to NOK 91.6 million (y-o-y)
• o 1 656 employees
• Up 6 from Q3'20
• An increase of 99 in the past 12 months
• o Proposed dividend NOK 22.00 per share

Revenue and number of employees MNOK and number

In times of Covid-19

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 Q4 2020

Bouvet training 2020

• o 41 % of the revenue was in Q4
• o 40 % of revenue in 2020 was customer specific training
• o 26 breakfast seminars with over 8 800 participants in total
• o More than 15 000 participants on all events (5 700 last year)

Technology for a healthy and productive ocean

• o The consortium SFI Smart Ocean´s main goal is to enable digitalisation for ocean based industries
• o The prime objective is to develop an "Internet of Things" data platform
• o Bouvet´s deliveries:
• Software technology and big-data middleware
• Establish a foundation for the digital ecosystem in collaboration with the consortium

Modernisation of Medical Training

• Developed in collaboration with Stavanger Universitetssykehus (SUS)
• The system assists doctors to diagnose using scenario based learning
• Bouvet deliveries:
• Implementation of AR/VR solution
• Technical project management

Renewal of brand experience and customer journey

• o Sleipner develops world-leading products and solutions for yachts and professional boats
• o Bouvet was chosen as the sole supplier and partner to assist Sleipner
• o Bouvet´s deliveries:
• Brand strategy
• Communication concept
• Logo and visual profile
• Websites and e-commerce
• HoloLens
• User experience
• Technical services

14

The four largest sectors

o Public admin

• Increased by 11.8 percent (y-o-y)
• Represents 26.9 percent of total revenues in Q4'20

o Oil & gas

• Decreased by 2 percent (y-o-y)
• Represents 25.1 percent of total revenues in Q4'20

o Power supply

• Increased by 81.3 percent (y-o-y)
• Represents 16.9 percent of total revenues in Q4'20

o Info and communication

• Increased by 25.3 percent (y-o-y)
• Represents 5.7 percent of total revenues in Q4'20

Further improvements in client satisfaction

" "Bouvet is undoubtedly a long-term, sound and serious player, with good and broad expertise."

Observation from the client satisfaction survey 2020.

Customer and project mix

• o Project mix
• Variable contracts account for 98.9 percent of total revenues
• o Customer portfolio
• The 10 largest customers represent 46.5 percent of total revenues – up from 41.5 percent in Q4'19
• The 20 largest customers represent 55.8 percent of total revenues – up from 51.7 percent in Q4'19

Variably priced contracts share of revenues Percentage

10 largest customers share of revenues Percentage

Customer development

o Existing customers*

• Accounted for 94.9 percent of revenues in Q4'20
• o New customers**
• Customers won over the past year generated revenues of NOK 32.9 million in Q4'20

Q4'19 Q4'20

0

Enthusiastic and competent employees

• o 1 656 employees at the end of the quarter
• Up 6 from Q3'20
• 99 more employees in the past 12 months
• Average number of employees in the quarter up 6.7 percent from Q4'19

Annual growth in number of employees

Sesam - a Bouvet subsidiary

Master Data Hub for Data Platforms

• o Customers:
• Elvia
• Statnett
• Agder Energi
• Fortum
• Aker Solutions / Aize / Cognite
• MHWirth
• Bayer
• Elektroskandia
• Bergaard Amundsen
• Norwegian Medicin Agency
• Swedish Medicin Agency
• Bane Nor
• Avinor

Financial Review

Key figures

		Three months ending		Twelve	months ending
MNOK	31.12.2020	31.12.2019	Change	31.12.2020	31.12.2019	Change
Operating revenue	645.6	588.5	9.7 %	2 401.8	2 132.1	12.7 %
Operating profit (EBIT)	91.6	71.4	28.3 %	314.6	232.1	35.6 %
EBIT margin	14.2 %	12.1 %		13.1 %	10.9 %
Ordinary profit before tax	90.5	67.3	34.3 %	311.7	228.2	36.6 %
Profit for the period	69.1	54.6	26.6 %	241.2	180.1	33.9 %
EPS (fully diluted)	6.66	5.29	26.0 %	23.29	17.44	33.6 %
Net cash flow operations	198.7	229.8	-13.5 %	450.9	277.1	62.7 %
Equity ratio	32.5 %	29.4 %		32.5 %	29.4 %
Liquid assets	576.8	344.7	67.3 %	576.8	344.7	67.3 %
Number of employees (end of period)	1 656	1 557	6.4 %	1 656	1 557	6.4 %
Number of employees (average)	1 653	1 549	6.7 %	1 609	1 474	9.2 %

Revenue

• o Revenues increased by 9.7 percent y-o-y
• Revenues from own consultants increased by 10.9 percent to NOK 545.1 million
• Revenues from sub-contracted consultants decreased by 1.5 percent to NOK 75.8 million
• Other revenues increased by 22.4 percent to NOK 24.7 million

Revenue split (quarterly figures) MNOK

Revenue split (12 months rolling average) MNOK

Revenues from own consultants

• o Increased 10.9 percent y-o-y
• Positive impact from 6.7 percent increase in average number of employees
• Positive impact from 0.4 percent increase in prices for group hourly services
• Positive impact from increase in billing ratio by 0.7 percentage points
• 63 workdays in Q4'20 one more than Q4'19

Revenue per employee (quarterly figures) 0 100 200 300 400 Q4'16 Q4'17 Q4'18 Q4'19 Q4'20 TNOK

Analysis of change in revenues y-o-y

Earnings

• o Operating profit (EBIT) increased by 28.3 percent to NOK 91.6 million
• o EBIT margin of 14.2 percent compared to 12.1 percent in Q4'19
• o Operating expenses increased by 7.1 percent y-o-y
• o General growth in pay rate 4.7 percent y-o-y
• o Covid-19 effects
• Positiv impact from reduced costs related to travel, courses, conferences, social events and recruitment - NOK 6.1 million

EBIT and EBIT margin MNOK and Percent

EBIT and EBIT margin (LTM)

MNOK and Percent

Change in revenues – effect on EBIT

MNOK

Cash flow

o Cash flow from operations

• NOK 198.7 million in Q4'20 compared to NOK 229.8 million in Q4'19
• o Cash flow last 12 months
• Operational cash flow over the last 12 months was NOK 450.9 million
• o Cash flow from investing activities
• Negative NOK 3.8 million compared to negative NOK 4.9 million in Q4'19
• o Proposed dividend NOK 22.00 per share

Outlook summary

• o Focus on digital transformation:
• Public sector
• Energy sector
• Oil and gas sector
• o High demand for:
• System development
• Cloud and platform services
• Security
• o Increased demand for crossfunctional teams
• o Challenging market for recruitment

Shareholders as of 19.02.2021

Shareholders	Number of shares	% of total
FOLKETRYGDFONDET	754 930	7,34 %
The Bank of New York Mellon	750 682	7,30 %
VARNER KAPITAL AS	716 633	6,97 %
STENSHAGEN INVEST AS	536 699	5,22 %
VERDIPAPIRFOND ODIN NORDEN	451 215	4,39 %
SVERRE HURUM	387 125	3,76 %
VERDIPAPIRFONDET NORDEA AVKASTNING	288 370	2,80 %
MP PENSJON PK	265 082	2,58 %
ERIK STUBØ	205 292	2,00 %
VERDIPAPIRFONDET NORDEA KAPITAL	199 729	1,94 %
UBS Switzerland AG	179 148	1,74 %
VEVLEN GÅRD AS	162 802	1,58 %
VERDIPAPIRFONDET FIRST VERITAS	155 740	1,51 %
VERDIPAPIRFOND ODIN NORGE	127 057	1,24 %
VERDIPAPIRFONDET NORDEA NORGE PLUS	111 007	1,08 %
State Street Bank and Trust Comp	110 555	1,07 %
ANDERS ERIKSEN-VOLLE	99 830	0,97 %
VERDIPAPIRFONDET KLP AKSJENORGE INDEKS	94 991	0,92 %
State Street Bank and Trust Comp	94 055	0,91 %
TELENOR PENSJONSKASSE	90 000	0,87 %
Number of shares held by the 20 largest shareholders	5 780 942	56,20 %