Multiconsult

Earnings Release • Nov 7, 2019

Multiconsult ASA third quarter 2019

Multiconsult ASA third quarter 2019

Multiconsult third quarter 2019 net operating revenues were up 6.7% y-o-y to NOK

720.4 million. EBIT came in at NOK 21.0 million in the quarter and NOK 97.6

million YTD 2019. Third quarter result is impacted by net project write-downs of

NOK 31.1 million. The order backlog remains strong at NOK 2.7 billion with a

solid order intake of NOK 945 million in the quarter and NOK 3.0 billion year to

date. Multiconsult initiates "nextLEVEL" profitability improvement programme,

intensifying improvement efforts with a target of NOK 150 million annual

improvements within 18 months.

Oslo, 7 November 2019

"I am pleased with the solid order intake and revenue growth in the quarter

confirming our strong position with our customers. The gives us a strong

foundation moving into 2020. The profitability in the quarter is not

satisfactory and impacted by high project write-downs. We are introducing the

"nextLEVEL" improvement programme targeting NOK 150 million in annual

improvement within 18 months", says Grethe Bergly, CEO of Multiconsult ASA.

Third quarter 2019

Third quarter net operating revenues increased by 6.7% to NOK 720.4 million (NOK

675.5 million) compared to same period last year. There was a high level of net

project write-downs of NOK 31.1 in the quarter, reflecting a level of 4.3% of

net operating revenues. Compared with third quarter in 2018, there was a

calendar effect of one more working day in 2019 with a positive year-on-year

impact of NOK 10.4 million.

Operating expenses in the third quarter were NOK 648.3 million (NOK 657.3

million). The group implemented IFRS 16 on 1 January 2019. Adjusted for IFRS 16

effect, operating expenses increased by 4.7%. The increase reflects higher

activity level as well as claims settlements.

Third quarter EBIT amounted to NOK 21.0 million (NOK 4.5 million), reflecting a

2.9% EBIT margin, including positive calendar effect of NOK 10.4 million and a

positive IFRS 16 effect of NOK 5.4 million compared with third quarter last

year.

Year to date 2019

Multiconsult delivered year to date net operating revenues of NOK 2 531.4

million (NOK 2 422.1 million), reflecting an increase of 4.5%. The increase is

purely organic and mainly driven by higher activity level.

Operating expenses year to date 2019 decreased 0.2% to NOK 2 289.6 million (NOK2

294.2 million). Adjusted for IFRS 16 effect, operating expenses increased by

5.0%, caused partially by net recruitment, ordinary salary adjustment, general

consumer price index and one-off severance agreement expenses in the first

quarter.

Year to date EBIT amounted to NOK 97.6 million (NOK 89.5 million), reflecting an

EBIT margin of 3.9%. Compared with year to date 2018, the reported EBIT includes

NOK 32.2 million in negative effects from legal dispute settlement and one-off

severance expenses, as well as a positive IFRS 16 effect of NOK 16.1 million.

Order backlog at the end of the third quarter 2019 remains strong at NOK 2 732

million (NOK 2 365). Order intake during the third quarter had a solid increase

compared to third quarter in 2018. The project tender pipeline remains solid

across most business areas, with some short-term uncertainty..

The overall market outlook is good across most business areas. There is a

continued tough competition on large projects in Norway, but there is a

generally positive outlook and pipeline in our markets.

A presentation of the third quarter 2019 results followed by Capital Markets Day

will be held today, 7 November, in English at 09:00 CET at Felix Conference

Centre, Bryggetorget 3, Oslo. The third quarter 2019 results will be presented

by CEO Grethe Bergly and CFO Hans-Jørgen Wibstad.

A live webcast from the presentation can be accessed at https://www.multiconsult

-ir.com and

https://webtv.hegnar.no/presentation.php?webcastId=98164411.

For further information, please contact:

Investor relations:

Mirza Koristovic, Head of Investor Relations and Finance

Phone: +47 938 70 525

E-mail: ir@multiconsult.no

Media:

Gaute Christensen, VP Communications

Phone: +47 911 70 188

E-mail: gaute.christensen@multiconsult.no