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Bouvet

Quarterly Report Feb 19, 2021

3563_rns_2021-02-19_0aae39da-fa75-4c1c-a640-8fa610c51ccd.pdf

Quarterly Report

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Quarterly report 2020

Q4

We lead the way and build tomorrow's society

Key figures

NOK MILLION OCT-DEC 2020 OCT-DEC 2019 CHANGE % JAN-DEC 2020 JAN-DEC 2019 CHANGE %
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 %
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 %
Net cash flow operations 198.7 229.8 -13.5 % 450.9 277.1 62.7 %
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 %
Earnings per share 6.74 5.34 26.1 % 23.52 17.61 33.6 %
Diluted earnings per share 6.66 5.29 26.0 % 23.29 17.44 33.6 %
EBIT-margin 14.2 % 12.1 % 13.1 % 10.9 %
Equity ratio 32.5 % 29.4 % 32.5 % 29.4 %

Bouvet in brief

We are a Scandinavian consultancy in the field of IT and digital communication. We support both private- and public-sector players with digitalisation, and help them to meet the challenges and exploit the opportunities presented by new technology.

We have long-term client relationships and are a strategic partner for many enterprises. We work with these on innovation, development and implementation of solutions. Our understanding of client activities and our broad range of services in information technology, communication and enterprise management mean we are often chosen as a turnkey supplier.

Our clients are important societal players and we contribute through our collaboration with them to the development of society. That is in line with our vision.

A close relationship with clients is possible because we pursue our assignments with a high level of integrity. In addition to our standards for delivering good solutions, we set strict requirements for ethics, avoiding conflicts of interest, security, openness and trustworthiness.

Digital developments create continuous change. To be able to handle this and to seize the opportunities which arise, we devote particular attention to the job satisfaction and expertise of our employees, continuous service development and our credibility as a long-term partner.

With a regional model where each office and organisational unit has considerable freedom, we have reduced bureaucracy and shortened decision paths. That gives us an adaptability which is essential for the ability to create good, flexible and durable solutions.

At 31 December 2020, we had 1 656 employees at 11 offices in Norway and three in Sweden.

BOUVET ASA Highlights of the fourth quarter

Employee survey confirms a high level of job satisfaction
Client satisfaction survey documents that they have never been
more satisfied with Bouvet
CEO changeover completed, with Sverre Hurum passing the
baton to Per Gunnar Tronsli
Operating revenues up by NOK 57.1 million or 9.7 per cent from
the fourth quarter of 2019 to NOK 645.6 million
Operating profit (EBIT) rose by 28.3 per cent from the same period
of 2019 to NOK 91.6 million
Employees rose by six people from the previous quarter and by
99 over the past 12 months
The board proposes a dividend of NOK 22.00 per share for 2020

CEO'S COMMENTS

Satisfied employees create satisfied clients

Our aim in Bouvet is to have the most satisfied employees and the most satisfied clients. This goal again guided us in 2020 and in the quarter, and directed all our efforts at a time heavily affected by Covid-19. Our concern has been to get through the pandemic together in a way which strengthens our culture and our fellowship.

We believe that satisfied employees create satisfied clients. Experience shows us that the most important contribution we make to our clients occurs through the committed and highly competent people we employ. Our attention throughout this period has therefore been directed at our employees, their working day and their job satisfaction, and at our clients and the value we create together.

The pandemic has forced us to look with new and creative eyes at our everyday work in Bouvet. We have had to examine how we learn, share expertise, keep our spirits and enthusiasm up by showing care and by meeting in new ways, share information and communicate, use digital tools to collaborate and, not least, interact with our clients and partners.

This attention has been characterised by an incomparable creativity and willingness to create new ways of interacting, and we will be incorporating much of this experience into our future way of working.

The employee survey conducted during the quarter provided very positive confirmation of the commitment made to continuing the development of our culture and fellowship at a very difficult time. Never before have we had so much positive feedback on the strength of employee satisfaction in our group. Questions about job satisfaction, work motivation, how employees feel they are seen and heard, and how they gain the personal development all of them dream about, have yielded more positive and confirmatory feedback than ever.

Along with our employees, clients have been our most important concern. During 2020 and in the quarter, we could be grateful over the significance of digitalisation for our clients and for their associated long-term priorities and investment. The uncertainty both they and we lived through earlier in the year was replaced with increased demand from our biggest customers towards the end of the year and the quarter. Sectors characterised by downscaling earlier in the year acquired renewed optimism during these three months.

The client satisfaction survey conducted during the quarter provided solid confirmation that the commitment shown by our whole workforce in their meeting with clients is greatly valued. Never before have our clients expressed themselves more positively about our ability to support their digitalisation initiatives. They find themselves met proactively and collaborative in an open and trust-based manner, and feel that our breadth and multidisciplinary approach make an important

contribution to their efforts to improve efficiency and transform their own activities.

We continued our steady growth during the quarter in terms of both employees and turnover. Profits are growing strongly, in part because of cost reductions attributable to Covid-19.

The news broke this quarter that Sverre Hurum is stepping aside after 18 years as our CEO, and passing on the baton. I know I speak for everyone in the group in expressing our collective gratitude for Sverre's contribution to Bouvet over many years. Throughout this time, he has helped to build a group with a unique culture rooted in a focus on its employees, long-term customer relations and a corporate culture which seeks constantly to improve further. This has created a very special business with a unique history. Many thanks, Sverre.

It is now our job to carry Bouvet forward, and we will do that in the way we know best – by being the group at its best. This means that we will continue to stretch ourselves in pursuit of our vision that "we lead the way and build tomorrow's society". We will do the same with our clients through socially beneficial and sustainable deliveries. We will continue to stretch

ourselves in pursuit of our ambition of having the most satisfied employees by further developing our culture and our fellowship, and of being an arena where people get the professional and personal development they seek. We will continue to stretch ourselves in pursuit of our ambition of having satisfied clients by building long-term partnerships with them in sectors which are important for social progress. In other words, we will continue to work for a Bouvet at its best.

Per Gunnar Tronsli President and CEO

Operating revenues

Bouvet had operating revenues of NOK 645.6 million for the fourth quarter, compared with NOK 588.5 million in the same period of 2019. That represented a rise of 9.7 per cent. Fee income generated by the group's own consultants came to NOK 545.1 million, up by 10.9 per cent from NOK 491.4 million in the fourth quarter of 2019. Fee income generated by sub-contractors declined by 1.5 per cent from the same period of 2019 to NOK 75.8 million. Other revenues came to NOK 24.7 million, up by 22.4 per cent from the fourth quarter of 2019.

An increase of 6.7 per cent in the average number of employees over the quarter had a positive effect of NOK 37.9 million on fee income from the group's own consultants. The quarter had one working day more than the same period of 2019, which increased fee income from the group's own consultants by NOK 9.1 million. An 0.4 per cent rise in rates for the group's hourly based services compared with the fourth quarter of 2019 increased fee income from the group's own consultants by NOK 2.4 million. An 0.7 percentage-point increase in the billing ratio for the group's consultants from the fourth quarter of 2019 had a positive effect of NOK 5.4 million on fee income. Sickness absence was down by 0.7 percentage points from the fourth quarter of 2019, which increased fee income from the group's own employees by NOK 3.3 million. Higher take-up of parental leave reduced fee income from the group's own employees by NOK 2.7 million. Other effects, such as holiday take-up, progress in projects and time off in lieu, had a negative effect of NOK 1.6 million on fee income from the group's own employees. All told, these factors had a positive effect of NOK 53.8 million on fee income generated by the group's own consultants.

Sales to existing clients made good progress overall during the quarter. Clients who also used the group in the fourth quarter

100 200 300 400 500 600 700 NOK MILLION

Q4 2018

Operating revenue

of 2019 accounted for 94.9 per cent of operating revenues. In addition, clients acquired since 31 December 2019 contributed a total of NOK 32.9 million to fourth-quarter operating revenues.

Bouvet's strategy is to use services from sub-contractors when it lacks the capacity to meet demand with its own personnel or when clients require leading-edge expertise outside the group's priority areas. The sub-contractor share of total revenues was 11.7 per cent in the fourth quarter, compared with 13.1 the same period of 2019.

Operating revenues for the full year were NOK 2 401.8 million, compared with NOK 2 132.1 million in the same period of 2019. That represented a rise of 12.7 per cent. Fee income generated by the group's own consultants for the year increased by NOK 245.1 million or 13.7 per cent from the same period of 2019. This growth primarily reflects a rise of 9.2 per cent in the average number of employees, a growth of 0.1 percentage points in the billing ratio for the group's consultants and a 1.9 per cent increase in rates for the group's hourly based services. In addition, fee income generated by sub-contractors for the year grew by NOK 23.1 million or 8.4 per cent from the same period of 2019. Other operating revenues rose by NOK 1.5 million or 2.1 per cent from 2019.

Operating costs

Q4 2020

Q4 2019 Bouvet's operating costs, including depreciation and amortisation, totalled NOK 554 million for the fourth quarter, up from NOK 517.1 million in the same period of 2019. That represented a rise of 7.1 per cent. Payroll costs grew by 9.9 per cent to NOK 415.9 million because of a rise in the average number of employees as well as the general growth in pay rates. The group experienced a general rise in pay of 4.7 per cent over the past 12 months. The cost of sales was NOK 82.1 million, compared with NOK 78.3 million in the fourth quarter of 2019, and primarily comprised procurement of sub-contractor services and software as well as the hire of course instructors. Other operating expenses fell by NOK 6.1 million overall, reflecting reduced costs for travel, courses, conferences, social events and recruitment – primarily as direct consequences of the Covid-19 pandemic. Depreciation and amortisation came to NOK 17.6 million, compared with NOK 16 million in the fourth quarter of 2019.

Total operating costs for the full year increased by 9.9 per cent from the same period of 2019 to NOK 2 087.3 million. The cost of sales for the year was up by 7.7 per cent to NOK 308.8 million, largely owing to greater use of subcontractors. Payroll costs rose by 14.6 per cent to NOK 1 579.7 million. In connection with the Covid-19 pandemic, the rate of employer's National Insurance contribution was reduced by four percentage points

Q4 2017

0

Q4 2016 in May and June 2020, which yielded a saving of NOK 7 million for the group's business in Norway. Other operating expenses fell overall by NOK 42.9 million, mainly as a result of reduced costs for travel, courses, conferences, social events and recruitment. This was primarily a direct consequence of the Covid-19 pandemic. Depreciation and amortisation came to NOK 67 million, compared with NOK 60.7 million for 2019.

The reduction in other operation expanses was largely attributable to the effects of the Covid-19 pandemic. The group expects virtually all this effect to be reversed over time as the pandemic declines.

Profit

Operating profit (EBIT) for the fourth quarter came to NOK 91.6 million, compared with NOK 71.4 million in the same period of 2019. The EBIT margin was thereby 14.2 per cent, compared with 12.1 per cent in the fourth quarter of 2019. Net profit came to NOK 69.1 million, up from NOK 54.6 million in the same period of 2019. Diluted earnings per share were NOK 6.66 for the quarter, compared with NOK 5.29 in the same period of 2019.

Cumulative operating profit for the full year was NOK 314.6 million, compared with NOK 232.1 million in 2019. That

Operating profit (EBIT)

represents an increase of 35.6 per cent. The EBIT margin was thereby 13.1 per cent, compared with 10.9 per cent the year before. Net profit came to NOK 241.2 million, up from NOK 180.1 million for 2019. Diluted earnings per share were NOK 23.29 for the year, compared with NOK 17.44 for 2019.

%Revenue public/private Revenue per business

Revenue from customer 100 % public owned: 54.4 %

Revenue from customer wholly or partially private owned: 45.6 %

%

Cash flow, liquidity and capital adequacy

Consolidated cash flow from operations was NOK 198.7 million for the fourth quarter, compared with NOK 229.8 million in the same period of 2019. Cash flow for the quarter was affected positively by a decrease of NOK 90.4 million from the third quarter of 2020 in working capital related to accounts receivable, work in progress, other current receivables, accounts payable and other current liabilities. Consolidated cash flow from operations for the full year came to NOK 450.9 million, compared with NOK 277.1 million in the same period of last year.

Capital spending in the quarter totalled NOK 3.8 million, including NOK 2.2 million for the acquisition of new operating assets and NOK 1.6 million for investment in intangible assets. In the fourth quarter of 2019, capital spending totalled NOK 5.8 million, including NOK 4 million for acquiring new operating assets and NOK 1.8 million invested in intangible assets.

Overall capital spending for the full year came to NOK 27.6 million, including NOK 18.5 million for the acquisition of operating assets and NOK 9.1 million invested in intangible assets. During the year, the group sold operating assets for NOK 0.2 million, so that net investment totalled NOK 27.4 million compared with NOK 24 million in 2019.

The group's client portfolio consists mainly of large, solid listed companies and public enterprises. No bad debts were suffered during the quarter, and the group has good oversight and control of its receivables.

The group has no interest-bearing debt. Bank deposits at 31 December totalled NOK 576.8 million, compared with NOK 344.7 million a year earlier. Of bank deposits at 31 December, the account for employee tax deductions totalled NOK 57.8 million. Disposable bank deposits thereby totalled NOK 519 million, compared with NOK 294.9 million at the same date in the year before. The group had an undrawn overdraft facility of NOK 100 million at 31 December. Bouvet held 467 of its own shares at 31 December. Equity at 31 December totalled NOK 422.9 million, representing an equity ratio of 32.5 per cent. The corresponding figures for 31 December 2019 were an equity of NOK 317.8 million and an equity ratio of 29.4 per cent.

At its meeting of 9 November 2020, the board of Bouvet ASA decided to exercise the mandate awarded by the general meeting and resolved to pay a supplementary dividend of NOK 8.25 per share for fiscal 2019. The dividend was paid on 19 November 2020.

Segment reporting

The group does not report internally by separate business areas. Its business is homogenous and pursued within the Scandinavian market for IT consultancy services. Risk and return are followed up for the business as a whole, with shared markets, on a project basis and per consultant. On that basis, the group has one reportable segment.

Progress and market

The market for Bouvet's services was good in the fourth quarter. Covid-19 and the national measures instituted had limited effect on group operations. Existing clients continued to involve Bouvet in their digitalisation activities during the quarter. The rapid digitalisation progress driven by Covid-19 has increased the need for innovation and collaboration across functions and sectors.

Many of Bouvet's clients have developed advanced digital services and system in order to shift towards more data-driven operations. Bouvet has contributed across its whole range of services in design, communication, consulting and technology. The group was a digitalisation partner and turnkey supplier for a number of clients during the quarter. Its cross-disciplinary delivery models, breadth of services and cross-sectoral

experience also attracted assignments from new clients, where Bouvet could contribute to their digital restructuring.

Demand for the group's cloud services continued to increase during the quarter. This included services related to innovation in the cloud, cloud migration and cloud operation/management. Together with clients and partners, Bouvet has worked continuously on further development of services in this area. Among current assignments, mention can be made of Equinor's move-to-cloud work.

The significance of data at individual enterprises and in society as a whole has increased demand for Bouvet's expertise on insight, data analysis and platform technology. It has taken care of differing client needs and approaches through

continuous development and adaptation of its service range and through sharing experience across sectors. Examples worth mentioning include further development of existing platform technology for oil and gas for transfer to renewable energy. Bouvet is contributing its expertise on sensors and platform technology to develop an observation system to support sustainable growth in the ocean for the Smart Ocean project at the Centres for Research-Based Innovation (SFI).

IT and business are closely integrated in the work of digitalisation and restructuring at the group's clients. A concentration on improving efficiency, automation and technology-driven value creation has increased demand for service deliveries and cross-disciplinary teams. That has included enquiries for services and expertise related to agile frameworks, such as SAFe. Bouvet has worked with its clients on further development of its delivery forms tailored to their organisational and market requirements.

One area where demand has increased is design-driven product development and innovation, where design processes are combined with an agile framework to provide for rapid introduction of user- and business-oriented solutions to the market. Bouvet's Olavstoppen subsidiary delivered crossdisciplinary teams with this kind of approach during the quarter to such clients as Easee, eSmart and EMsoft.

Value creation and increased productivity call for insight into the problem or challenge to be resolved through an integrated approach often with the focus on the human element. Bouvet's clients therefore had a need during the quarter for designrelated services such as service design and design thinking. This type of expertise has been attractive in developing a foundation for innovative procurement in the public sector.

The importance of detailed knowledge about and a crossdisciplinary approach to user behaviour, design, content and coding in developing business-critical user interfaces generated continuous demand for this type of service during the quarter. Bouvet supported Sleipner, which manufactures thruster systems, hydraulic control systems and propeller equipment, with renewal of its brand, communication concept and visual identity as well as development of a new website and e-commerce solution for launching in an international market. Design-related expertise has also yielded big value in other sectors such as health care, where Bouvet has contributed to more user-friendly solutions for staff and patients.

Rapid digitalisation in enterprises has increased the need for digital expertise. Bouvet's course department witnessed growing demand for learning with such tools as Office 365 and Teams, as well as with flexible organisation, change management and service design.

Enterprise architecture, process, project and change management, and security are examples of consultancy services which experienced growing demand during the quarter. Bouvet received expanded assignments with this type of consultancy from such clients as the City of Oslo, the Swedish Association of Local Authorities and Regions (SKR), Svenska Kraftnät and the Norwegian Tax Administration.

The market for system development remained very good during the quarter, when Bouvet worked with varied types of assignments and technologies.

Bouvet's long-term client relationships were important for the good results in the quarter. Its presence in a number of sectors has proved to create value. Within industry, demand for new types of assignments grew during the quarter. Examples of orders placed include developing a reporting solution for the Eyde Cluster as part of a move towards a circular economy, and support to Glencore Nikkelverk for starting the "cloud journey".

Among other clients during the quarter, mention can be made of the Norwegian Courts Administration, the Brønnøysund Register Centre, the Public Health Agency of Sweden, SKR, Svenska Kraftnät, the Swedish Public Employment Service, Vår Energi, the Norwegian Communications Authority, Nordland county council, the joint rescue coordination centre in Bodø, Aker BP, the Central Norway Regional Health Authority, Norsk Hydro, Cappelen Damm, Equinor, Statnett, the Norwegian Public Service Pension Fund, the Norwegian armed forces, the Norwegian Labour Inspection Authority, Bane Nor, the Norwegian Water Resources and Energy Directorate, Hafslund, the City of Oslo, the Norwegian Directorate for Education and Training, Viking Redningstjeneste, the Norwegian Environment Agency, Vinmonopolet, BKK, the Norwegian Tax Administration, Apotek 1, the City of Bergen and Sporveien.

Sesam

Sesam, a Bouvet subsidiary, delivers a unique data platform component which ensures optimal data quality. This makes it simpler and faster to build cost-effective, value-enhancing solutions on the basis of platforms, and helps enterprises to become data-driven.

At 31 December, Sesam had 30 clients.

Located in Norway, Sweden and Germany, these included Elektroskandia, Aker Solutions and Statnett.

Effects of Covid-19

Bouvet has worked continuously, in close collaboration with its clients, to continue developing and improving our interaction and communication during the Covid-19 period. Some increase in competition in parts of the market has led to a certain amount of pressure on prices.

Employees

Bouvet had 1 656 employees at its 14 offices in Norway and Sweden at 31 December – up by 6 from 30 September and by 99 from a year earlier.

Bouvet's ambition is to be the consultancy with the most content employees. Satisfied personnel contribute to the quality of deliveries, satisfied clients and lower staff turnover. As a result of the Covid-19 outbreak, the group has been hands-on with its employees to ensure good working conditions for the individual, maintain job satisfaction and continue its community-based focus on ensuring social and professional identity. The organisation has devoted continuous attention to its adaptability with regard to regional infection control measures. Experience in the quarter showed that productivity was maintained.

The group's personnel have applied their creativity to identifying opportunities for fellowship, both through informal meetings with colleagues during the working day and through social events which have been moved to the virtual arena. This has created new meeting places and forms of togetherness, which have provided contact and built fellowship in new areas.

Conducted in the autumn of 2020, the employee survey shows that Bouvet personnel have a high level of job satisfaction rooted in highly interesting jobs, good development opportunities, and trust in colleagues and management.

Knowledge about and familiarity with different services and experience increased across regions during the quarter through the establishment of networks and joint deliveries.

ANTALL ANSATTE Number of employees (end of quarter)

2 000

Bouvet's regional and collective incentive models facilitate this. New forms of collaboration between colleagues have reinforced the group's fellowship-oriented sharing culture, and have become important for expertise-sharing across regions.

Demand from clients for Bouvet's expertise has resulted in a continued focus on recruitment to increase delivery capacity. The group is able to attract relevant candidates in all age segments and service categories.

In line with its vision of "we lead the way and build tomorrow's society", Bouvet completed its first activities during the fourth quarter aimed at including sustainability more clearly in its strategy.

The risk picture is affected by the Covid-19 pandemic. Uncertainty prevails about what the general economic consequences might be, both in short term and over a longer period, and how the competitive position will develop. The consequences could be increased pressure on prices. The extraordinary measures introduced by the government affect both Bouvet and its clients. Action taken in the future will depend on the further progress of the pandemic, and its effects are therefore uncertain.

Generally speaking, the group is exposed at any given time to various forms of operational, market and financial risk. The board and executive management work continuously on risk management and control. This is described in more detail on pages 10-11 and note 23 in the annual report for 2019. See also section 10 in the corporate governance presentation.

Outlook

Society is experiencing a digital transformation with the focus on improving productivity and rapid user adoption of digital services. Enterprises must have a digital presence in order to be competitive, and users expect a seamless public sector. That creates a need for sharing data across enterprises and sectors.

Important technologies for achieving greater productivity and economic growth as well as more sustainable social development include the internet of things, artificial intelligence, Big Data, data platforms and the cloud. In addition to technology, achieving the desired effects calls for new business models, organisational changes and new expertise.

Communication, design, technological and consultancy expertise will be needed, along with an overall understanding of and experience with continuous value-driven product and organisational development.

Bouvet has the breadth of services, the sharing culture, the structure for composing cross-disciplinary teams, the capacity, and the regional and adaptable model required to meet this development. The group thereby remains well positioned to deliver to its clients and to contribute to social development.

Contacts

Per Gunnar Tronsli

President and CEO Tel: +47 23 40 60 00 | +47 900 20 622

Erik Stubø

CFO Tel: +47 23 40 60 00 | +47 950 36 011

Declaration by the board and CEO

We hereby confirm to the best of our knowledge that the interim financial statements for the fourth quarter of 2020 and the preliminary financial statements for 1 January to 31 December 2020 have been prepared in accordance with IAS 34, and that the information in the financial statements provides a true and fair picture of the overall assets, liabilities, financial position and financial results of the Bouvet ASA group. We also confirm to the best of our knowledge that the interim report provides a true and fair view of important events in the accounting period and their influence on the interim financial statements, the most important risk and uncertainty factors facing the business in the next accounting period, and significant transactions with close associates.

Oslo, 19 February 2021 The board of directors of Bouvet ASA

Pål Egil Rønn Chair of the board

Ingebrigt Steen Jensen

Director

Tove Raanes Deputy chair

Egil Christen Dahl Director

Grethe Høiland Director

Per Gunnar Tronsli President and CEO

Consolidated income statement

NOK 1 000 NOTE UNAUDITED
OCT-DEC
2020
UNAUDITED
OCT-DEC
2019
CHANGE CHANGE % UNAUDITED
JAN-DEC
2020
JAN-DEC
2019
CHANGE CHANGE %
Revenue 2 645 597 588 533 57 064 9.7 % 2 401 844 2 132 052 269 792 12.7 %
Operating expenses
Cost of sales 82 090 78 282 3 808 4.9 % 308 822 286 639 22 183 7.7 %
Personell expenses 415 879 378 271 37 608 9.9 % 1 579 668 1 377 938 201 730 14.6 %
Depreciation fixed assets 4 14 944 14 079 865 6.1 % 58 047 53 851 4 196 7.8 %
Amortisation intangible assets 3 2 664 1 947 717 36.8 % 8 921 6 826 2 095 30.7 %
Other operating expenses 38 449 44 563 -6 114 -13.7 % 131 827 174 747 -42 920 -24.6 %
Total operating expenses 554 026 517 142 36 884 7.1 % 2 087 285 1 900 001 187 284 9.9 %
Operating profit 91 571 71 391 20 180 28.3 % 314 559 232 051 82 508 35.6 %
Financial items
Interest income 232 930 -698 -75.1 % 1 584 3 245 -1 661 -51.2 %
Financial income 313 174 139 79.9 % 1 677 316 1 361 430.7 %
Interest expense -1 416 -4 607 3 191 -69.3 % -5 273 -5 206 -67 1.3 %
Finance expense -248 -555 307 -55.3 % -809 -2 192 1 383 -63.1 %
Net financial items -1 119 -4 058 2 939 -72.4 % -2 821 -3 837 1 016 -26.5 %
Ordinary profit before tax 90 452 67 333 23 119 34.3 % 311 738 228 214 83 524 36.6 %
Income tax expense
Tax expense on ordinary profit 21 373 12 748 8 625 67.7 % 70 539 48 081 22 458 46.7 %
Total tax expense 21 373 12 748 8 625 67.7 % 70 539 48 081 22 458 46.7 %
Profit for the period 69 079 54 585 14 494 26.6 % 241 199 180 133 61 066 33.9 %
Assigned to:
Shareholders in parent company 69 048 54 601 241 113 180 149
Non-controlling interests 31 -16 86 -16
Diluted earnings per share 6.66 5.29 1.37 26.0 % 23.29 17.44 5.85 33.6 %
Earnings per share 6.74 5.34 1.39 26.1 % 23.52 17.61 5.91 33.6 %

Consolidated statement of other income and costs

NOK 1 000 NOTE UNAUDITED
OCT-DEC
2020
UNAUDITED
OCT-DEC
2019
CHANGE CHANGE % UNAUDITED
JAN-DEC
2020
JAN-DEC
2019
CHANGE CHANGE %
Periodens resultat 69 079 54 585 14 494 26.6 % 241 199 180 133 61 066 33.9 %
Poster som kan reklassifiseres over
resultat i senere perioder
Omregningsdifferanser valuta -149 239 -388 -162.4 % 1 250 -304 1 555 -510.5 %
Sum andre inntekter og kostnader -149 239 -388 -162.4 % 1 250 -304 1 555 -510.5 %
Totalresultat 68 930 54 824 14 106 25.7 % 242 449 179 829 62 621 34.8 %
Henføres til:
Eiere i morselskapet 68 899 54 840 242 363 179 845
Ikke-kontrollerende interesse 31 -16 86 -16

Consolidated balance sheet

NOK 1 000 NOTE UNAUDITED
31.12.2020
31.12.2019 CHANGE CHANGE %
ASSETS
NON-CURRENT ASSETS
Intangible assets
Deferred tax asset 1 826 1 133 693 61.2 %
Goodwill 3 33 573 32 722 851 2.6 %
Other intangible assets 3 36 539 35 932 607 1.7 %
Total intangible assets 71 938 69 787 2 151 3.1 %
Fixed assets
Office equipment 27 291 24 868 2 423 9.7 %
Office machines and vehicles 4 582 4 865 -283 -5.8 %
IT equipment 17 077 19 510 -2 433 -12.5 %
Right-of-use assets 4 222 888 232 611 -9 723 -4.2 %
Total fixed assets 271 838 281 854 -10 016 -3.6 %
Financial non-current assets
Other financial assets 10 10 0 0.0 %
Other long-term receivables 2 022 1 927 95 4.9 %
Total financial non-current assets 2 032 1 937 95 4.9 %
Total non-current assets 345 808 353 578 -7 770 -2.2 %
CURRENT ASSETS
Work in progress 2 59 267 67 842 -8 575 -12.6 %
Trade accounts receivable 276 024 276 167 -143 -0.1 %
Other short-term receivables 37 459 37 142 317 0.9 %
Liquid assets 576 786 344 725 232 061 67.3 %
Total current assets 949 536 725 876 223 660 30.8 %
TOTAL ASSETS 1 295 344 1 079 454 215 890 20.0 %

Consolidated balance sheet

NOK 1 000 NOTE UNAUDITED
31.12.2020
31.12.2019 CHANGE CHANGE %
EQUITY AND LIABILITIES
EQUITY
Paid-in capital
Share capital 5 10 286 10 250 36 0.4 %
Share premium 29 567 10 000 19 567 195.7 %
Total paid-in capital 39 853 20 250 19 603 96.8 %
Earned equity
Other equity 382 195 296 706 85 489 28.8 %
Total earned equity 382 195 296 706 85 489 28.8 %
Non-controlling interests 873 795 78 9.8 %
Total equity 422 921 317 751 105 170 33.1 %
DEBT
Long-term debt
Lease liabilities 188 688 201 352 -12 664 -6.3 %
Total long-term debt 188 688 201 352 -12 664 -6.3 %
Short-term debt
Current lease liabilities 38 229 33 520 4 709 14.0 %
Trade accounts payable 59 064 51 661 7 403 14.3 %
Income tax payable 64 468 46 434 18 034 38.8 %
Public duties payable 207 360 181 807 25 553 14.1 %
Deferred revenue 2 7 394 11 268 -3 874 -34.4 %
Other short-term debt 307 220 235 661 71 559 30.4 %
Total short-term debt 683 735 560 351 123 384 22.0 %
Total liabilities 872 423 761 703 110 720 14.5 %
TOTAL EQUITY AND LIABILITIES 1 295 344 1 079 454 215 890 20.0 %

Consolidated statement of cash flows

NOK 1 000 NOTE UNAUDITED
OCT-DEC 2020
UNAUDITED
OCT-DEC 2019
UNAUDITED
JAN-DEC 2020
JAN-DEC 2019
Cash flow from operating activities
Ordinary profit before tax 90 452 67 333 311 738 228 214
Paid tax -7 096 -10 585 -46 434 -44 732
(Gain)/loss on sale of fixed assets 15 -26 -183 -168
Ordinary depreciation 14 944 14 078 58 047 53 851
Amortisation intangible assets 3 2 664 1 947 8 921 6 826
Share based payments 3 173 2 126 9 801 8 044
Changes in work in progress, accounts receivable and accounts payable 82 949 86 977 16 122 -25 121
Changes in other accruals 11 592 67 923 92 864 50 142
Net cash flow from operating activities 198 694 229 774 450 876 277 054
Cash flows from investing activities
Sale of fixed assets 4 81 260 568
Purchase of fixed assets -2 152 -3 969 -18 571 -16 433
Purchase of intangible assets 3 -1 616 -1 806 -9 075 -8 921
Investment in subsidiaries - net cash 0 812 0 812
Net cash flow from investing activities -3 764 -4 882 -27 385 -23 973
Cash flows from financing activities
Capital increase 19 603 0 19 603 0
Purchase of own shares 0 -24 650 0 -35 991
Sales of own shares 0 21 152 0 21 152
Payments on lease liabilities 4 -11 038 -9 845 -41 909 -38 655
Dividend payments -84 568 0 -169 125 -133 250
Net cash flow from financing activities -76 003 -13 343 -191 431 -186 744
Net changes in liquid assets 118 927 211 548 232 061 66 337
Liquid assets at the beginning of the period 457 859 133 177 344 725 278 388
Liquid assets at the end of the period 576 786 344 725 576 786 344 725

Consolidated statement of changes in equity

NOK 1 000 SHARE
CAPITAL
OWN
SHARES
SHARE
PREMIUM
TOTAL
PAID-IN
EQUITY
OTHER
EQUITY
TRANSLATION
DIFFERENCES
TOTAL
OTHER
EQUITY
NON-CON
TROLLING
INTERESTS
TOTAL
EQUITY
Equity at 01.01.2019 10 250 -1 10 000 20 249 257 244 -500 256 744 0 276 993
Profit for the period 0 180 149 180 149 -16 180 133
Other income and costs 0 -304 -304 -304
Purchase/sale of own shares (net) 1 1 -14 796 -14 796 -14 795
Employee share scheme 0 8 162 8 162 8 162
Change non-controlling interests 0 0 811 811
Dividend -133 250 -133 250 -133 250
Equity at 31.12.2019 10 250 0 10 000 20 250 297 509 -804 296 706 795 317 751
Equity at 01.01.2020 10 250 0 10 000 20 250 297 509 -804 296 706 795 317 751
Profit for the period 241 113 241 113 86 241 199
Other income and costs 1 250 1 250 1 250
Employee share scheme 12 251 12 251 12 251
Change non-controlling interests -8 -8
Share issue 36 19 567 19 603 19 603
Dividend -169 125 -169 125 -169 125
Equity at 31.12.2020 (Unaudited) 10 286 0 29 567 39 853 381 748 446 382 195 873 422 921

Notes

Note 1: Accounting principles

This interim report is presented in accordance with the International Financial Reporting Standards (IFRS) and interpretations determined by the European Union, and have been prepared in accordance with IAS 34. The interim financial statements have not been audited, do not include all the information required in annual financial statements and should be viewed in conjunction with the group's annual report for 2019.

The accounting policies applied are consistent with those applied in previous financial year.

Note 2: Revenue from contracts with customers

The Group is primarily delivering its services based on time and material used and has in most cases legal rights for payment for services delivered at date. In cases where the Group has income from projects with predefined results at a fixed price or which has elements causing the income per hour to be unknown

before completion of the project, the income is recorded in correlation with the degree of completion. Progress is measured as incurred hours in relation to totally estimated hours. For these projects the customer controles the asset being made or improved.

Specification revenue:

NOK 1 000 OCT-DEC 2020 OCT-DEC 2019
Contract category
Fixed- and target price 6 065 8 003
Variable contracts 639 532 580 530
Total revenue 645 597 588 533
Business sector
Bank & finance 17 934 25 113
Power supply 109 361 60 520
Health 13 735 11 825
Industry 26 999 26 581
Info and communication 36 808 23 504
Public admin 173 831 167 501
Oil & gas 162 287 168 243
Service industry 33 163 22 801
Transportation 33 605 36 761
Retail 27 784 35 534
Other 10 090 10 150
Total revenue 645 597 588 533
Public/privat sector
Public sector (100% owned) 351 305 299 575
Privat sector 294 292 288 958
Total revenue 645 597 588 533
Work in progress 59 267 67 842
Deferred revenue 7 394 11 268

At the balance sheet date, processed but not billed services amounted to NOK 59.27 million (2019.12.31: NOK 67.84 million). This is mainly services delivered on running account, invoiced to customers at the beginning of the next month.

Intangible assets and goodwill are related to added value from the acquisitions of subsidiaries, businesses, and costs related to development of software and internally developed internet homepage.

NOK 1 000 SOFTWARE OTHER
INTANGIBLE
ASSETS
GOODWILL JAN-DEC
2020
SOFTWARE OTHER
INTANGIBLE
ASSETS
GOODWILL JAN-DEC
2019
Book value 1 January 30 989 4 943 32 722 68 654 27 906 6 165 32 944 67 015
Additions of the period 0 0 0 0 0 0 0 0
Self-developed software 9 075 0 0 9 075 8 920 0 0 8 920
Amortisation -7 401 -1 520 0 -8 921 -5 837 -989 0 -6 826
Exchange rate variances 0 453 851 1 304 0 -233 -222 -455
Book value end of period 32 663 3 876 33 573 70 112 30 989 4 943 32 722 68 653
Amortisation rate 20 % 10-20 % N/A 20 % 10-20 % N/A
Economic life 5 years 5-10 years not decided 5 years 5-10 years not decided
Amortisation method linear linear N/A linear linear N/A

The group is developing Sesam, a software as a service (SaaS). This software provides a stand-alone, generic data platform component – a master data hub which continuously exchanges data with the business' core systems. Sesam delivers a unique platform component which continually ensures optimal data quality and makes it simpler and faster to build cost-effective, value-enhancing solutions on the basis of the platform. The latter is in continual development, with intelligent data catalogues, artificial intelligence integration and predictive data type analysis in focus during 2020. A total of NOK 58 030 thousand has so far been invested in the software Sesam, which is capitalised and amortised in modules. The Stream and Swarm modules were completed in 2020, with the Data Catalogue, Infrastructure, Performance and Unification modules under development during the year. These modules have an expected service life of five years.

Note 4: Leases

Right-of-use-assets

NOK 1 000 PREMISES OTHER LEASES JAN-DEC 2020 PREMISES OTHER LEASES JAN-DEC 2019
Book value 1 January 232 606 5 232 611 264 941 70 265 011
Additions/adjustments of the period 30 030 0 30 030 3 577 0 3 577
Depreciation -39 256 -5 -39 261 -35 790 -65 -35 855
Exchange rate variances -492 -492 -122 -122
Book value end of period 222 888 0 222 888 232 606 5 232 611
Economic life 1-9 years 1-2 years 1-9 years 1-2 years
Depreciation method linear linear linear linear

Lease liabilities

FUTURE LEASE PAYMENTS PER YEAR
NOK 1 000 FUTURE LEASE PAYMENTS 2021 2022 2023 2024 2025 > 2025
Undiscounted lease liabilities 31.12.2020 241 390 42 417 41 558 39 451 37 895 32 516 47 553

Note 5: Share capital and dividend

SHARES IN THOUSANDS 31.12.2020 31.12.2019
Ordinary shares, nominal value NOK 1 10 286 10 250
Total number of shares 10 286 10 250

The nominal value of the share is NOK 1. All shares in the company have equal voting rights and are equally entitled to dividend.

Changes in share capital and premium

NO. OF SHARES SHARE CAPITAL
NOK 1 000 31.12.2020 31.12.2019 31.12.2020 31.12.2019
Ordinary shares issued and fully paid at 31.12. 10 286 10 250 10 286 10 250
Own shares at nominal value 0 -38 0 -38

In the period, Bouvet ASA, has not acquired any own shares. The company owns 467 own shares at the end of the period. However, Bouvet ASA, has completed a private placement towards employees. A total of 36 363 shares at a nominal value of NOK 1 was issued. The cash consideration for these shares was NOK 19 603 thousand. The share issue has increased the share capital in Bouvet ASA by NOK 36 363 to NOK 10 286 363. The total number of shares outstanding after this share issue is 10 286 363.

Dividend

The company has paid the following dividends:

NOK 1 000
JAN-DEC 2020
JAN-DEC 2019
Ordinary dividend for 2019: NOK 8.25 per share (November 2020) 84 563
Ordinary dividend for 2019: NOK 8.25 per share (May 2020) 84 563
Ordinary dividend for 2018: NOK 13.00 per share (May 2019) 133 250
Total 169 125 133 250

Proposed dividend to be approved at the annual general meeting May 2021 amounts to NOK 22.00 per share.

Note 6: Transactions with related parties

Shares in the Company directly or indirectly owned by the Board and Management

NO. OF SHARES
NAME ROLE 30.09.2020 BUY SALE 31.12.2020
Pål Egil Rønn Chairman of the Board 5 000 5 000
Tove Raanes Vice-chairman of the Board 895 895
Grethe Høiland Board member 0 0
Ingebrigt Steen Jensen Board member 1 300 1 300
Egil Christen Dahl Board member 203 502 203 502
Sverre F. Hurum Former CEO 387 068 57 387 125
Per Gunnar Tronsli CEO 6 365 57 6 422
Erik Stubø CFO 205 235 57 205 292
Total 809 365 171 0 809 536

Note 7: Events after the balance sheet date

There have been no events after the balance sheet date significantly effecting the Group's financial position.

Alternative Performance Measures

The European Securities and Markets Authority ("ESMA") issued guidelines on Alternative Performance Measures ("APMs") that came into force on July 3, 2016. Bouvet discloses APMs that are frequently used by investors, analysts, and other interested parties. The management believes that the disclosed APMs provide improved insight into the operations, financing, and prospects of Bouvet. Bouvet has defined the following APMs:

EBITDA is short for earnings before interest, taxes, depreciation, and amortization. EBITDA is calculated as profit for the period before tax expense, financial items, depreciation, and amortization.

EBIT is short for earnings before interest and taxes. EBIT corresponds to operating profit in the consolidated income statement.

Net free cash flow is calculated as net cash flow from operations plus net cash flow from investing activities. EBITDA-margin is calculated as EBITDA divided by revenue.

EBIT-margin is calculated as EBIT divided by revenue.

Cash flow margin is calculated as Net cash flow from operations divided by revenue.

Equity ratio is calculated as total equity divided by total assets.

Liquidity ratio is calculated as current assets divided by short-term debt.

Key figures Group

NOK 1 000 OCT-DEC 2020 OCT-DEC 2019 CHANGE % JAN-DEC 2020 JAN-DEC 2019 CHANGE %
INCOME STATEMENT
Operating revenue 645 597 588 533 9.7 % 2 401 844 2 132 052 12.7 %
EBITDA 109 179 87 417 24.9 % 381 527 292 728 30.3 %
Operating profit (EBIT) 91 571 71 391 28.3 % 314 559 232 051 35.6 %
Ordinary profit before tax 90 452 67 333 34.3 % 311 738 228 214 36.6 %
Profit for the period 69 079 54 585 26.6 % 241 199 180 133 33.9 %
EBITDA-margin 16.9 % 14.9 % 13.9 % 15.9 % 13.7 % 15.7 %
EBIT-margin 14.2 % 12.1 % 16.9 % 13.1 % 10.9 % 20.3 %
BALANCE SHEET
Non-current assets 345 808 353 578 -2.2 % 345 808 353 578 -2.2 %
Current assets 953 696 725 876 31.4 % 953 696 725 876 31.4 %
Total assets 1 299 504 1 079 454 20.4 % 1 299 504 1 079 454 20.4 %
Equity 422 921 317 751 33.1 % 422 921 317 751 33.1 %
Long-term debt 188 688 201 352 -6.3 % 188 688 201 352 -6.3 %
Short-term debt 687 895 560 351 22.8 % 687 895 560 351 22.8 %
Equity ratio 32.5 % 29.4 % 10.6 % 32.5 % 29.4 % 10.6 %
Liquidity ratio 1.39 1.30 7.0 % 1.39 1.30 7.0 %
CASH FLOW
Net cash flow operations 198 694 229 774 -13.5 % 450 876 277 054 62.7 %
Net free cash flow 194 929 224 891 -13.3 % 423 491 253 081 67.3 %
Net cash flow 118 927 211 548 -43.8 % 232 061 66 337 249.8 %
Cash flow margin 30.8 % 39.0 % -21.2 % 18.8 % 13.0 % 44.5 %
SHARE INFORMATION
Number of shares 10 286 363 10 250 000 0.4 % 10 286 363 10 250 000 0.4 %
Weighted average basic shares outstanding 10 249 533 10 219 372 0.3 % 10 249 533 10 228 839 0.2 %
Weighted average diluted shares outstanding 10 362 005 10 325 937 0.3 % 10 352 851 10 332 463 0.2 %
EBIT per share 8.93 6.99 27.8 % 30.68 22.69 35.2 %
Diluted EBIT per share 8.84 6.92 27.8 % 30.38 22.46 35.2 %
Earnings per share 6.74 5.34 26.1 % 23.52 17.61 33.6 %
Diluted earnings per share 6.66 5.29 26.0 % 23.29 17.44 33.6 %
Equity per share 41.11 31.00 32.6 % 41.11 31.00 32.6 %
Dividend per share 8.25 0.00 N/A 16.50 13.00 26.9 %
EMPLOYEES
Number of employees (year end) 1 656 1 557 6.4 % 1 656 1 557 6.4 %
Average number of employees 1 653 1 549 6.7 % 1 609 1 474 9.2 %
Operating revenue per employee 391 380 2.8 % 1 493 1 447 3.1 %
Operating cost per employee 335 334 0.4 % 1 297 1 289 0.6 %
EBIT per employee 55 46 20.2 % 195 157 24.2 %

Definitions

Cash flow margin Net cash flow operations / Operating revenue
Diluted earnings per share Profit for the period assigned to shareholders in parent company / weighted average diluted
shares outstanding
Diluted EBIT per share EBIT assigned to shareholders in parent company / weighted average diluted shares outstanding
Dividend per share Paid dividend per share througout the year
Earnings per share Profit for the period assigned to shareholders in parent company / weighted average basic shares
outstanding
EBIT Operating profit
EBIT per employee EBIT / average number of employees
EBIT per share EBIT assigned to shareholders in parent company / weighted average basic shares outstanding
EBIT-margin EBIT / operating revenue
EBITDA Operating profit + depreciation fixed assets and intangible assets
EBITDA-margin EBITDA / operating revenue
Equity per share Equity / number of shares
Equity ratio Equity / total assets
Liquidity ratio Current assets / Short-term debt
Net free cash flow Net cash flow operations - Net cash flow investments
Number of shares Number of issued shares at the end of the year
Operating cost per employee Operating cost / average number of employees
Operating revenue per employee Operating revenue / average number of employees
Weighted average basic shares outstanding Issued shares adjusted for own shares on average for the year
Weighted average diluted shares outstanding Issued shares adjusted for own shares and share scheme on average for the year

Our regions and offices

The Group has 14 offices in Norway and Sweden. Our philosophy is that competence should be utilized across the company, while projects are attached locally.

OSLO

Sørkedalsveien 8 NO-0369 Oslo P. O. Box 5327 Majorstuen NO-0304 Oslo Tel: (+47) 23 40 60 00

ARENDAL

Frolandsveien 6 NO-4847 Arendal Tel: (+47) 23 40 60 00

BERGEN

Solheimsgaten 15 NO-5058 Bergen Tel: (+47) 55 20 09 17

DRAMMEN

Drammen Business Center Dr. Hansteins Gate 9 NO-3044 Drammen Tel: (+47) 23 40 60 00

GRENLAND

Uniongata 18 Klosterøya NO-3732 Skien Tel: (+47) 23 40 60 00

HAUGESUND Diktervegen 8 NO-5538 Haugesund Tel: (+47) 52 82 10 17

KRISTIANSAND

Kjøita 25 NO-4630 Kristiansand Tel: (+47) 23 40 60 00

SANDEFJORD

Fokserødveien 12 NO-3241 Sandefjord Tel: (+47) 23 40 60 00 SANDVIKA Leif Tronstadsplass 7 NO-1337 Sandvika Tel: (+47) 23 40 60 00

STAVANGER

Laberget 28 NO-4020 Stavanger P. O. Box 130 NO-4065 Stavanger Tel: (+47) 51 20 00 20

TRONDHEIM

Kjøpmannsgata 35 7NO-011 Trondheim Tel: (+47) 23 40 60 00

STOCKHOLM

Östermalmsgatan 87 A 114 59 Stockholm Tel: (+ 46) 0 771 611 100

BORLÄNGE

Forskargatan 3 781 70 Borlänge Tel: (+46) 0 771 611 100

ÖREBRO

Kungsgatan 1 702 11 Örebro Tel: (+46) 0 709 431 411

This quarter, we have changed, renewed and improved:

  • Medical students will use virtual reality (VR) to diagnose rare and acute conditions
  • Developing the world's most autonomous robot system for surface treatment in industry
  • Efficient and predictable bus services in Rogaland with the help of data science
  • Helping pleasure boaters to a sustainable and simpler life afloat with a new app
  • The accounts and pay section for the Norwegian courts has acquired more efficient work processes
  • Set a social media record for a Norwegian museum
  • Contributing to enhanced quality development for careers advice with new websites
  • Contributing to better and more effective systems for people using public transport
  • Conceptualised a new innovation and technology centre for tomorrow's green industry
  • Development of Power BI reports for detailed overview of procurement at county councils
  • Carried out in-depth interviews which contribute to valuable insights in the public sector
  • Contributed communication and change expertise to major change projects

en.bouvet.no

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