Bouvet

Investor Presentation • Aug 25, 2020

Interim presentation Second quarter 2020

25 August 2020

Sverre Hurum, CEO Erik Stubø, CFO

47% of managers see the need of enhancing digital skills in their organisation

Source: Survey Bouvet spring 2020

Course in agile methodology for Helse Vest IKT´s employees

• o Helse Vest IKT arranged an online course for 100 employees
• o The aim was to learn more about agile methodology and how this approach can contribute to more interdisciplinary innovation when working remote
• o Bouvet facilitated the course using design thinking and digital tools for collaboration

Highlights in the quarter

o Revenue and EBIT

• • Operating revenues increased by 15 percent to NOK 596.1 million (y-o-y)
• • EBIT increased by 43.7 percent to NOK 85.2 million (y-o-y)
• o 1 594 employees
  • • Up 19 from Q1'20
  • • An increase of 139 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

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

Operational Review

Public and private sector

Business sectors Q2 2020

The four largest sectors

o Public admin

• • Increased by 14.8 percent (y-o-y)
• • Represents 27.1 percent of total revenues in Q2'20

o Oil & gas

• • Increased by 13.3 percent (y-o-y)
• • Represents 26.9 percent of total revenues in Q2'20

o Power supply

• • Increased by 91.8 percent (y-o-y)
• • Represents 15.5 percent of total revenues in Q2'20

o Transportation

• • Decreased by 18.5 percent (y-o-y)
• • Represents 5.2 percent of total revenues in Q2'20

Lerøy Seafood Group has signed an analytics agreement with Bouvet

• o Lerøy Seafood Group is a world-leading seafood corporation. The Group´s core business is:
  • • Production of salmon and trout, catches of whitefish, processing, product development, marketing, sale and distribution of seafood.
• o Bouvet is chosen to be an analytics partner and provides a data science team for statistical analysis on biological data

Photo:pxhere.com

Statnett has signed digital strategy agreement with Bouvet

• o Statnett is to assess the international vendor market for platform services and components, in order to evaluate their technological maturity and conformance with Statnett´s business and security needs.
• o The work will serve as a foundation for the future platform strategy in Statnett
• o Bouvet is chosen as partner and project manager for this work
• o Bouvet provide resources to help:
  • • Assess the international vendor market
  • • Develop and assess platform architectures
  • • Develop future platform strategy

Flood warning for Sauda

• o In 10 days, Bouvet delivered a data platform that visualised this year's flood for Sauda
• o Data is collected from NVE, weather services and five IoT sensors placed strategically in Saudafaldene
• o The client was DigiRogaland including collaboration with Sauda, Stavanger and Gjesdal Municipality

The City of Oslo has signed another agreement with Bouvet

• o The City of Oslo has several IT solutions regarding public housing
• o Bouvet has been chosen to maintain and further develop the system portfolio
• o The duration of the agreement is up to 5 years
• o Estimated value between NOK 20 and 60 million

Customer and project mix

• o Project mix
  • • Variable contracts account for 99.3 percent of total revenues
• o Customer portfolio
  • • The 10 largest customers represent 45 percent of total revenues – up from 39.2 percent in Q2'19
  • • The 20 largest customers represent 55.6 percent of total revenues – up from 50.3 percent in Q2'19

Variably priced contracts share of revenues Percentage

10 largest customers share of revenues Percentage

Customer development

o Existing customers*

• • Accounted for 96.2 percent of revenues in Q2'20
• o New customers**
  • • Customers won over the past year generated revenues of NOK 22.3 million in Q2'20

* Ex is t ing tom de f ine d a tom t ha t w inv ice d in t he cu s ers s c us ers ere o
d ing ter las t y cor res p on q uar ear
** Ne tom de f ine d a tom inc d o f w c us ers s c us ers wo n s e e n
d ing ter las t y cor res p on q uar ear

Q2'19

Q2'20

Enthusiastic and competent employees

• o 1 594 employees at the end of the quarter
  • • Up 19 from Q1'20
  • • 139 more employees in the past 12 months
  • • Average number of employees in the quarter up 10.5 percent from Q2'19

Annual growth in number of employees

Financial Review

Key figures

	T hr t hs d ing e e mo n e n			S ix t hs d ing mo n e n			Tw lve t hs d ing e mo n e n
M N O K	3 0. 0 6. 2 0 2 0	3 0. 0 6. 2 0 1 9	C ha ng e	3 0. 0 6. 2 0 2 0	3 0. 0 6. 2 0 1 9	C ha ng e	3 0. 0 6. 2 0 2 0	3 0. 0 6. 2 0 1 9	C ha ng e
ing Op t era re ve nu e	5 9 6. 1	5 1 8. 4	1 5. 0 %	1 2 3 7. 3	1 0 8 2. 7	1 4. 3 %	2 2 8 6. 7	2 0 1 3. 4	1 3. 6 %
( ) ing f i Op E B I T t t era p ro	8 5. 2	5 9. 3	4 3. 7 %	1 6 7. 8	1 2 8. 1	3 1. 0 %	2 7 1. 7	2 1 3. 4	2 7. 3 %
E B I T m in arg	3 % 1 4.	% 1 1. 4		3. 6 % 1	8 % 1 1.		9 % 1 1.	0. 6 % 1
d f be for Or ina i t tax ry p ro e	8 4. 0	5 9. 3	4 1. 5 %	1 6 7. 1	1 2 7. 9	3 0. 7 %	2 6 7. 5	2 1 4. 4	2 4. 8 %
f i for he io d Pro t t p er	6 5. 5	4 6. 4	4 1. 3 %	1 3 0. 2	9 9. 8	3 0. 5 %	2 1 0. 5	1 6 8. 8	2 4. 7 %
( fu l ly d lu d ) E P S i te	6. 3 3	4. 5 0	4 0. 7 %	1 2. 5 6	9. 6 5	3 0. 2 %	2 0. 3 6	1 6. 3 7	2 4. 3 %
h f low Ne ion t c t as op era s	1 6 3. 8	3 2. 2	4 0 8. 2 %	2 1 0. 9	3 6. 5	4 7 8. 0 %	4 5 1. 5	2 3 8. 3	8 9. 5 %
i io Eq ty t u ra	% 3 0. 1	% 2 3. 4		% 3 0. 1	% 2 3. 4		% 3 0. 1	% 2 3. 4
d a L iq i ts u sse	4 3 6. 3	1 3 8. 8	2 1 4. 4 %	4 3 6. 3	1 3 8. 8	2 1 4. 4 %	4 3 6. 3	1 3 8. 8	2 1 4. 4 %
be f e loy ( d o f p d ) Nu io m r o mp ee s en er	1 5 9 4	1 4 5 5	9. 6 %	1 5 9 4	1 4 5 5	9. 6 %	1 5 9 4	1 4 5 5	9. 6 %
f e ( ) be loy Nu m r o mp ee s ave rag e	1 5 8 5	1 4 3 5	% 1 0. 5	1 5 7 7	1 4 1 6	% 1 1. 4	1 5 5 4	1 3 8 1	% 1 2. 5

Revenue

• o Revenues increased by 15 percent y-o-y
  • • Revenues from own consultants increased by 16.2 percent to NOK 499.1 million
  • • Revenues from sub-contracted consultants increased by 17.6 percent to NOK 81.8 million
  • • Other revenues decreased by 21.3 percent to NOK 15.2 million

Revenue split (quarterly figures) MNOK

Revenue split (12 months rolling average) MNOK

Revenues from own consultants

• o Increased 16.2 percent y-o-y
  • • Positive impact from 10.5 percent increase in average number of employees
  • • Positive impact from 2.3 percent increase in prices for group hourly services
  • • Negative impact from decrease in billing ratio by 0.3 percentage points
  • • 55 workdays in Q2'20 – one more than Q2'19

Revenue per employee (quarterly figures) TNOK

Revenue per employee (LTM)

TNOK

Analysis of change in revenues y-o-y

Earnings

• o Operating profit (EBIT) increased by 43.7 percent to NOK 85.2 million
• o EBIT margin of 14.3 percent compared to 11.4 percent in Q2'19
• o Operating expenses increased by 11.3 percent y-o-y
• o General growth in pay rate 2.8 percent y-o-y
• o Covid-19 effects
  • • Positiv impact from reduced rate of payroll tax with 4 percentage points - NOK 7 million
  • • Positiv impact from reduced costs related to travel, courses, conferences, social events and recruitment - NOK 16.9 million

EBIT and EBIT margin MNOK and Percent

EBIT and EBIT margin (LTM) MNOK and Percent

Change in revenues – effect on EBIT

Revenue

Cash flow

o Cash flow from operations

• • NOK 163.8 million in Q2'20 compared to NOK 32.2 million in Q2'19
• • Reduced trade accounts receivable from NOK 393.2 million in Q2'19 to NOK 292.9 in Q2'20
• o Cash flow from investing activities
  • • Negative NOK 4.5 million compared to negative NOK 6.5 million in Q2'19
• o Covid-19 effects
  • • Positiv impact in postponed payment of payroll tax and company tax - NOK 43.4 million

Outlook summary

• o High global uncertainty due to Covid-19
• o Increased competition
• o Rapid change in society, customer behaviour and business models
• o High demand for system development
• o Improved demand for service design and advisory as change management
• o Increased demand for cloud services
• o Increased demand for knowledge sharing and collaboration

Shareholders as of 25.08.2020

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