Bouvet

Investor Presentation • Nov 10, 2020

Interim presentation Third quarter 2020

10 November 2020

Sverre Hurum, CEO Erik Stubø, CFO

Highlights in the quarter

• o Revenue and EBIT
  • • Operating revenues increased by 12.6 percent to NOK 518.9 million (y‐o‐y)
  • • EBIT increased by 69.6 percent to NOK 55.2 million (y‐o‐y)
• o 1 650 employees
  • • Up 56 from Q2'20
  • • An increase of 105 in the past 12 months
• o High customer satisfaction
• o Supplementary dividend of NOK 8.25 per share

Revenue and number of employees MNOKandnumber

logo

Bouvet's vision

We lead the way and build tomorrow's society

Bouvet's ambition

We will be the most credible consultancy with the most satisfied employees and clients

Long‐term goals

Best workplace

Client‐oriented and long‐term relations

Successful business

Our services Communication Technology Consulting Brand‐building Mobile solutions Web solutions Graphic design ContentCollaboration Social media Enterprise Business Information Test Data SEO User testing Digital marketing customer experience Scrum Design systems Identity Access

Digital

System development Data Analysis Integration Application management Infrastructure Tailored solutions SAP Business intelligence Digital strategy architecture Multi‐channel strategy intelligence management management Project management IT architecture OpenCoursesscienceGDPR Big Data Change management Cloud Services Internal companyProduct strategy Service design Innovation DevOps Agile Lean Hybrid Cloud master Process management Program management Security Advisory sustainability and digitalisation Power BI Design thinking

IoT AI and machine learning Platforms HoloLens

Management Cyber –

Mixed reality physical systems

courses

courses

Operational Review

Public and private sector

Business sectors Q3 2020

The four largest sectors

o Oil & gas

• • Increased by 1.1 percent (y‐o‐y)
• • Represents 26.5 percent of total revenues in Q3'20

o Public admin

• • Increased by 18.1 percent (y‐o‐y)
• • Represents 26.3 percent of total revenues in Q3'20

o Power supply

• • Increased by 106.5 percent (y‐o‐y)
• • Represents 16.9 percent of total revenues in Q3'20

o Transportation

• • Decreased by 18.9 percent (y‐o‐y)
• • Represents 5.1 percent of total revenues in Q3'20

Technology partners

Bouvet in partnership with Microsoft for HoloLens in Norway

• o Bouvet has focused on Mixed Reality since 2015 and has positioned the company at the forefront of this technology.
• o We have successfully delivered projects to multiple countries, such as Italy, USA, UK and Australia
• o Launched Lens by Bouvet, our first App in the HoloLens Appstore with users in three continents
• o Authorized reseller of HoloLens in Norway

User‐centered product development and innovation

• o Easee has the goal of delivering the best user experience for car charging by focusing on sustainability, smartness and security
• o Bouvet´s subsidiary Olavstoppen develops the steering app and in collaboration with Easee continuously launches new features and applications

Sustainable business development

• o Innovation Norway conducts a program for the tourism industry with the aim to assist the sector to develop more sustainable business models
• o Bouvet´s deliveries:
  • • Ensuring digital implementation of the program
  • • Advising the participants in mapping the current business model and developing it in a more sustainable direction

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 47.2 percent of total revenues – up from 41.6 percent in Q3'19
  • • The 20 largest customers represent 56.6 percent of total revenues – up from 51.6 percent in Q3'19

Variably priced contracts share of revenues Percentage

10 largest customers share of revenues Percentage

Customer development

o Existing customers*

• • Accounted for 96.3 percent of revenues in Q3'20
• o New customers**
  • • Customers won over the past year generated revenues of NOK 19.1 million in Q3'20

* 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

Q3'19

0

Q3'20

Enthusiastic and competent employees

• o 1 650 employees at the end of the quarter
  • • Up 56 from Q2'20
  • • 105 more employees in the past 12 months
  • • Average number of employees in the quarter up 7.6 percent from Q3'19

Annual growth in number of employees

Financial Review

Key figures

	i T h t h d r e e m o n s e n n g		i i N t h d n e m o n s e n n g			i Tw lv t h d e e m o n s e n n g
M N O K	3 0. 0 9. 2 0 2 0	3 0. 0 9. 2 0 1 9	C h a n g e	3 0. 0 9. 2 0 2 0	3 0. 0 9. 2 0 1 9	C h a n g e	3 0. 0 9. 2 0 2 0	3 0. 0 9. 2 0 1 9	C h a n g e
ing Op t era rev en ue	5 1 8. 9	4 6 0. 9	1 2. 6 %	1 7 5 6. 2	1 5 4 3. 5	1 3. 8 %	2 3 4 4. 8	2 0 7 8. 9	1 2. 8 %
f ( ) Op ing i E B I T t t era p ro	2 5 5.	3 2. 6	6 9. 6 %	2 2 3. 0	1 6 0. 7	3 8. 8 %	2 9 4. 4	2 2 8 5.	3 0. 3 %
in E B I T ma rg	1 0. 6 %	7. 1 %		1 2. 7 %	1 0. 4 %		1 2. 6 %	1 0. 9 %
d f be for Or ina i t tax ry p ro e	5 4. 2	3 3. 0	6 4. 1 %	2 2 1. 3	1 6 0. 9	3 7. 5 %	2 8 8. 6	2 2 7. 2	2 7. 0 %
f for he Pro i io d t t p er	9 4 1.	2 5. 7	6 2. 9 %	2. 1 7 1	2 1 5. 5	3 % 7. 1	2 2 6. 7	9. 1 7 1	2 6. 6 %
S ( fu l ly d i lu d ) E P te	4. 0 4	2. 4 9	6 2. 0 %	1 6. 5 9	1 2. 1 5	3 6. 6 %	2 1. 8 8	1 7. 3 5	2 6. 2 %
h f low Ne ion t t cas op era s	4 1. 3	1 0. 8	2 8 2. 5 %	2 5 2. 2	4 7. 3	4 3 3. 4 %	4 8 2. 0	2 6 3. 2	8 3. 1 %
Eq i io ty t u ra	3 3. 2 %	2 % 7. 5		3 3. 2 %	2 % 7. 5		3 3. 2 %	2 % 7. 5
iq i d L ts ass e u	4 5 7. 9	1 3 3. 2	2 4 3. 8 %	4 5 7. 9	1 3 3. 2	2 4 3. 8 %	4 5 7. 9	1 3 3. 2	2 4 3. 8 %
be f loy ( d f d ) Nu io m r o em p ee s en o p er	1 6 5 0	1 5 4 5	6. 8 %	1 6 5 0	1 5 4 5	6. 8 %	1 6 5 0	1 5 4 5	6. 8 %
be f loy ( ) Nu m r o em p ee s ave rag e	1 6 2 8	1 1 3 5	6 % 7.	1 9 4 5	1 4 4 9	1 0. 0 %	1 8 3 5	1 4 2 7	1 0. 9 %

Revenue

• o Revenues increased by 12.6 percent y‐o‐y
  • • Revenues from own consultants increased by 11.9 percent to NOK 439.4 million
  • • Revenues from sub‐contracted consultants increased by 12.6 percent to NOK 63.0 million
  • • Other revenues increased by 34.5 percent to NOK 16.5 million

Revenue split (quarterly figures) MNOK

Revenue split (12 months rolling average) MNOK

Revenues from own consultants

• o Increased 11.9 percent y‐o‐y
  • • Positive impact from 7.6 percent increase in average number of employees
  • • Positive impact from 0.8 percent increase in prices for group hourly services
  • • Positive impact from increase in billing ratio by 0.9 percentage points
  • • 66 workdays in Q3'20 – equal to Q3'19

Revenue per employee (quarterly figures) 200 300 400 TNOK

TNOK

Analysis of change in revenues y‐o‐y

Earnings

• o Operating profit (EBIT) increased by 69.6 percent to NOK 55.2 million
• o EBIT margin of 10.6 percent compared to 7.1 percent in Q3'19
• o Operating expenses increased by 8.3 percent y‐o‐y
• o General growth in pay rate 3.1 percent y‐o‐y
• o Covid‐19 effects
  • • Positiv impact from reduced costs related to travel, courses, conferences, social events and recruitment ‐ NOK 22.1 million

EBIT and EBIT marginMNOKand Percent

24

Change in revenues – effect on EBIT

Revenue

Cash flow

o Cash flow from operations

• • NOK 41.3 million in Q3'20 compared to NOK 10.8 million in Q3'19
• o Cash flow last 12 months
  • • Operational cash flow over the last 12 months was NOK 482.0 million
• o Cash flow from investing activities
  • • Negative NOK 9.1 million compared to negative NOK 6.6 million in Q3'19

MNOK

Outlook summary

• o Focus on digital transformation:
  • • High demand for advisory and user‐centered development that creates value and develop organisations in a sustainable direction
  • • High demand for system development
  • • Improved demand for service design and advisory as change management
  • • High demand for cloud and platform services
  • • Increased demand for knowledge sharing and collaboration

Outlook summary

• o New opportunities due to rapid change in society, customer behaviour and business models
• o High global uncertainty due to Covid‐19
• o Increased competition and price pressure

Appendix

Shareholders as of 10.11.2020

ha ho l de S re rs	be f ha Nu m r o s res	f l % to ta o
S V A R N E R K A P I T A L A	8 8 0 0 0 1	9 8 % 7,
l l l‐ V ir K A R In ion Sm Ca tu te t s rna a a p	7 5 0 6 8 2	7, 3 2 %
F O L K E T R Y G D F O N D E T	7 0 8 9 9 0	6, 9 2 %
S S G S S T E N H A E N I N V E T A	8 6 6 9 9 5	2 % 5, 7
V E R D I P A P I R F O N D O D I N N O R D E N	4 5 1 2 1 5	4, 4 0 %
S V E R R E F I N N H U R U M	3 8 7 0 6 8	3, 7 8 %
V I A I O O A A V K A S I G E R D P P R F N D E T N R D E T N N	2 8 8 3 0 7	2, 8 1 %
M P P E N S J O N P K	2 6 5 0 8 2	2, 5 9 %
Ø E R I K S T U B	2 0 5 2 3 5	2, 0 0 %
Å G S V E V L E N R D A	2 0 3 0 2 5	9 9 % 1,
V E R D I P A P I R F O N D E T N O R D E A K A P I T A L	1 9 8 6 9 5	1, 9 4 %
lan d U B S Sw i A G tze r	1 7 8 9 1 8	1, 7 5 %
S S k d Co ta te tre t Ba Tr t e n an us mp	1 3 4 6 0 8	1, 3 1 %
V E R D I P A P I R F O N D O D I N N O R G E	1 2 7 0 5 7	% 1, 2 4
V E R D I P A P I R F O N D E T F I R S T V E R I T A S	1 1 9 9 7 9	1, 1 7 %
A N D E R S E R I K S E N‐ V O L L E	9 9 7 7 3	0, 9 7 %
K L P A K S J E N O R G E I N D E K S	9 8 5 5 5	% 0, 9 6
S T O R E B R A N D N O R G E I V E R D I P A P I R F O N D	9 8 0 5 5	0, 9 6 %
V E R D I P A P I R F O N D E T N O R D E A N O R G E P L U S	9 5 9 2 0	0, 9 4 %
T E L E N O R P E N S J O N S K A S S E	9 0 0 0 0	% 0, 8 8
be f ha he l d by he lar ha ho l de Nu 2 0 t t m r o s res g es s re rs	5 9 0 6 4 0 3	5 7, 6 2 %