Interim presentation First quarter 2020
- May 2020
Sverre Hurum, CEO Erik Stubø, CFO
Remote work
Breakfast seminars and courses
BouvetOne
Highlights in the quarter
o Revenue and EBIT
- Operating revenues increased by 13.6 percent to NOK 641.2 million (y-o-y)
- EBIT increased by 20.0 percent to NOK 82.6 million (y-o-y)
- o 1 575 employees
- Up 18 from Q4'19
- An increase of 170 in the past 12 months
- o Dividend NOK 8.25 per share
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
Client-oriented and long-term relations Best workplace Successful business
Operational Review
Public and private sector
Business sectors Q1 2020
The four largest sectors
o Oil & gas
- Increased by 22.5 percent (y-o-y)
- Represents 27.9 percent of total revenues in Q1'20
o Public admin
- Increased by 12.8 percent (y-o-y)
- Represents 27.2 percent of total revenues in Q1'20
o Power supply
- Increased by 46.1 percent (y-o-y)
- Represents 12.9 percent of total revenues in Q1'20
o Transportation
- Decreased by 22.4 percent (y-o-y)
- Represents 5.7 percent of total revenues in Q1'20
Bouvet's contribution to the Covid-19 situation
Unique digital collaboration
- o AltInn Digital supports user-friendly communication and collaboration between the public and private sectors and with individuals
- Supports development of digital forms and mails
- Offers APIs which make it possible to develop and deliver new digital services with unique user experiences
- o Bouvet's deliveries
- User experience
- Communication
- System development
Illustration: Sandra Blikås, Byhands
Enhanced information flow
- o The City of Oslo is building a new emergency ward. Its IT challenges are:
- Emergency care functions need better and more holistic IT support
- The flow of information is often disrupted
- Information is locked down in silo systems
- o Results
- Information flow throughout the patient journey
- A platform-based approach to enhance collaboration between health services
- Flexible IT architecture to facilitate rapid change
- o Bouvet ´s deliveries
- Information architecture
- Enterprise architecture
Customer and project mix
- o Project mix
- Variable contracts account for 98.8 percent of total revenues
- o Customer portfolio
- The 10 largest customers represent 42.8 percent of total revenues – up from 39.0 percent in Q1'19
- The 20 largest customers represent 53.6 percent of total revenues – up from 50.5 percent in Q1'19
Variably priced contracts share of revenues Percentage
Customer development
o Existing customers*
- Accounted for 95.7 percent of revenues in Q1'20
- o New customers**
- Customers won over the past year generated revenues of NOK 27.4 million in Q1'20
| * 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 |
Q1'19 Q1'20
0
Enthusiastic and competent employees
- o 1 575 employees at the end of the quarter
- Up 18 from Q4'19
- 170 more employees in the past 12 months
- Average number of employees in the quarter up 12.3 percent from Q1'19
Annual growth in number of employees
Financial Review
Key figures
|
Three months ending |
|
Twelve
months ending |
|
|
|
| MNOK |
31.03.2020 |
31.03.2019 |
Change |
31.03.2020 |
31.03.2019 |
Change |
| Operating revenue |
641.2 |
564.3 |
13.6 % |
2
209.0 |
1 948.8 |
13.4 % |
| Operating profit (EBIT) |
82.6 |
68.8 |
20.0 % |
245.8 |
209.9 |
17.1 % |
| EBIT margin |
12.9 % |
12.2 % |
|
11.1
% |
10.8 % |
|
| Ordinary profit before tax |
83.2 |
68.5 |
21.4 % |
242.9 |
210.4 |
15.4 % |
| Profit for the period |
64.7 |
53.4 |
21.0 % |
191.4 |
165.3 |
15.8 % |
|
|
|
|
|
|
|
| EPS (fully diluted) |
6.24 |
5.16 |
20.8 % |
18.51 |
16.07 |
15.2 % |
| Net cash flow operations |
47.1 |
4.3 |
N/A |
319.9 |
237.8 |
34.5 % |
|
|
|
|
|
|
|
| Equity ratio |
31.1 % |
29.2 % |
|
31.1 % |
29.2 % |
|
| Liquid assets |
372.0 |
267.1 |
39.3 % |
372.0 |
267.1 |
39.3 % |
|
|
|
|
|
|
|
| Number of employees (end of period) |
1
575 |
1 405 |
12.1 % |
1 575 |
1 405 |
12.1 % |
| Number of employees (average) |
1
569 |
1 398 |
12.3 % |
1 517 |
1 344 |
12.9 % |
Revenue
- o Revenues increased by 13.6 percent y-o-y
- Revenues from own consultants increased by 16 percent to NOK 544.6 million
- Revenues from sub-contracted consultants increased by 6.8 percent to NOK 78.3 million
- Other revenues decreased by 14.6 percent to NOK 18.3 million
Revenue split (quarterly figures) MNOK
Revenue split (12 months rolling average) MNOK
Revenues from own consultants
- o Increased 16 percent y-o-y
- Positive impact from 12.3 percent increase in average number of employees
- Positive impact from 3.8 percent increase in prices for group hourly services
- Negative impact from decrease in billing ratio by 1 percentage points
- 64 workdays in Q1'20 one more than Q1'19
Revenue per employee (quarterly figures) 0 100 200 300 400 Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 TNOK
Analysis of change in revenues y-o-y
Earnings
- o Operating profit (EBIT) increased by 20 percent to NOK 82.6 million
- o EBIT margin of 12.9 percent compared to 12.2 percent in Q1'19
- o Operating expenses increased by 12.7 percent y-o-y
- o General growth in pay rate 2.6 percent y-o-y
EBIT and EBIT margin MNOK and Percent
EBIT and EBIT margin (LTM)
MNOK and Percent
Change in revenues – effect on EBIT
Cash flow
o Cash flow from operations
- NOK 47.1 million in Q1'20 compared to NOK 4.3 million in Q1'19
- o Last 12 months
- Operational cash flow over the last 12 months was NOK 319.9 million
- o Cash flow from investing activities
- Negative NOK 10 million compared to negative NOK 6.1 million in Q1'19
MNOK Cash flow from operations (per quarter)
Cash flow from operations (LTM)
Industry impacts due to Covid-19 for Bouvet
| Health |
+ Potential for growth
+ Well positioned
- Increasing competition |
| Oil and gas |
- Low oil prices mean low willingness to invest
+ Involved in critical digitalisation processes
+ Positioned to participate in these changes |
| Public sector |
+ Digitalisation and efficiency improvements
+ Good liquidity and ability to pay
+ Well positioned
- Growing competition |
| Energy |
+ Level of activity kept high
+ Good liquidity and ability to pay
+ Well positioned |
We have a good starting point
Stronger together
Covid-19 makes the future uncertain, but we are well positioned to build tomorrow's society
We have clients who trust us, and we jointly find new ways of working
Our employees handle change and know how to work remotely
Outlook summary
- o High global uncertainty due to Covid-19
- o Rapid change in society, customer behaviour and business models
- o High demand for system development
- o Decreased demand for service design and advisory
- o Increased demand for knowledge sharing and collaboration
- o Increased competition
Appendix
Shareholders as of 19.05.2020
| Shareholders |
Number of shares |
% of
total |
| VIRTUS KAR INTERNATIONAL SMALL-CAP |
1 066 570 |
10,41 % |
| VARNER KAPITAL AS |
870 000 |
8,49 % |
| STENSHAGEN INVEST AS |
586 699 |
5,72 % |
| SVERRE HURUM |
462 068 |
4,51 % |
| VEVLEN GÅRD AS |
453 502 |
4,42 % |
| VERDIPAPIRFOND ODIN NORDEN |
451 192 |
4,40 % |
| VERDIPAPIRFONDET NORDEA AVKASTNING |
352 805 |
3,44 % |
| MP PENSJON PK |
270 082 |
2,63 % |
| ERIK STUBØ |
238 568 |
2,33 % |
| UBS SWITZERLAND AG |
204 918 |
2,00 % |
| VERDIPAPIRFONDET NORDEA KAPITAL |
180 595 |
1,76 % |
| VERDIPAPIRFOND ODIN NORGE |
127 057 |
1,24 % |
| STOREBRAND NORGE I VERDIPAPIRFOND |
124 190 |
1,21 % |
| STATE STREET BANK AND TRUST COMP |
122 258 |
1,19 % |
| ANDERS ERIKSEN-VOLLE |
116 440 |
1,14 % |
| VERDIPAPIRFONDET NORDEA NORGE PLUS |
95 920 |
0,94 % |
| TELENOR PENSJONSKASSE |
90 000 |
0,88 % |
| FOLKETRYGDFONDET |
88 506 |
0,86 % |
| EMPLOYEES RETIR SYSTEM OF TEXAS |
82 400 |
0,80 % |
| MUSTAD INDUSTRIER AS |
82 124 |
0,80 % |
| Number of shares held by the 20 largest shareholders |
6 065 894 |
59,18 % |