Multiconsult

Earnings Release • Aug 29, 2019

Multiconsult ASA second quarter and first half 2019

Multiconsult ASA second quarter and first half 2019

Multiconsult EBIT came in at negative NOK 15.9 million in the second quarter

2019 and positive NOK 76.5 million in the first half 2019. Underlying

profitability improved both in the second quarter and first half 2019. Compared

to second quarter 2018, the reported result was negatively impacted by a

significant calendar effect and legal settlement with Stortinget, totaling NOK

85.0 million. The order backlog remains strong at NOK 2.7 billion. Market

outlook is good and expected to remain stable. Multiconsult will hold a Capital

Market Day on 7 November 2019.

Oslo, 29 August 2019

"Despite a lower reported result compared to the same period last year, I am

pleased to see that the underlying profitability is improving both in the second

quarter and first half 2019. It is also encouraging to see that the growth

continues and that we have a strong order backlog. However, the overall

profitability level is not satisfactory, and we will continue to work hard to

improve this - focusing on cost, efficiency and operations", says Grethe Bergly,

CEO of Multiconsult ASA

Second quarter 2019

Multiconsult delivered second quarter net operating revenues of NOK 866.7

million (NOK 887.6 million), reflecting a decline of 2.4%. Compared with the

second quarter 2018, there was a calendar effect of five less working days in

the quarter, with a negative year-on-year impact of NOK 64.8 million. In

addition, there was a legal settlement with the Norwegian Parliament

(Stortinget) for the Prinsensgate 26 rehabilitiation project with a negative

effect of NOK 20.2 million. Adjusted for calendar effect and the legal dispute

settlement, organic growth in the quarter was 7.2%.

Operating expenses in the second quarter were NOK 835.3 million (NOK 826.3

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

effect, operating expenses increased by 5.9%. The increase is in line with

growth in manning level.

Second quarter EBIT amounted to negative NOK 15.9 million (NOK 48.9 million),

reflecting a  negative 1.8% EBIT margin in the quarter, including NOK 85.0

million in negative effects from five less working days and legal settlement

with Stortinget, as well as a positive IFRS 16 effect of NOK 5.4 million.

First half 2019

First half net operating revenues increased by 3.7% to NOK 1 810.9 million (NOK

1 746.7 million) compared to first half 2018. The increase is purely organic and

mainly driven by higher production in Norway. There was a calendar effect of one

less working day in Norway, reflecting a negative impact of NOK 14.6 million

compared to the same period previous year. Adjusted for calendar effects and the

legal settlement with Stortinget, organic growth in net operating revenues was

5.7%.

Operating expenses in the first half 2019 were at NOK 1 641.3 million (NOK 1

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

5.1%. The increase is in line with growth in manning level. One-off expenses of

approximately NOK 10 million as a result of several management changes were

recorded in the first quarter 2019.

First half EBIT amounted to NOK 76.5 million (NOK 85.0 million), reflecting an

EBIT margin of 4.2%. Compared with the first half 2018, the reported EBIT

includes NOK 44.8 million in negative effects from one less working day, legal

dispute settlement and one-off severance expenses, as well as a positive IFRS 16

effect of NOK 10.7 million.

The order backlog at the end of the second quarter 2019 remains strong at NOK 2

725 million (NOK 2 302). Order intake during the second quarter decreased

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

across most business areas.

As of 30 June 2019, total assets amounted to NOK 2 787.6 million and total

equity of NOK 582.5 million. Adjusted for IFRS 16 lease liabilities, net

interest-bearing debt amounted to NOK 167.9 million, which is reduced from NOK

186.6 million at the end of first quarter 2019.

The overall market outlook shows growth 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.

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A presentation of the second quarter 2019 results will be held today, 29 August,

in Norwegian at 09:00 CET at Hotel Continental, Stortingsgaten 24/26, Oslo.

An English presentation will also be held by an audio cast and conference call

at 10:30 CET. The presentations will be held by CEO Grethe Bergly and CFO Hans

-Jørgen Wibstad.

A live webcast from the Norwegian presentation can be accessed at

www.multiconsult-ir.com and

https://webtv.hegnar.no/presentation.php?webcastId=98043182.

The English presentation can be accessed at

https://webtv.hegnar.no/presentation.php?webcastId=98043188 or by conference

call. There will be a Q&A session after both the Norwegian and English

presentation.

Participant Access Information for the English conference call:

Please join the event conference 5-10 minutes prior to the start time. You will

be asked to provide the confirmation code or the title of your conference.

Event Conference Title:    Q2 Results

Confirmation Code:           1662072

Location               Purpose           Phone Number

Norway                 Participant        +47 2100 2610

United Kingdom      Participant         +44 (0)330 336 9125

United States        Participant         +1 323-794-2093

International         Participant         +44 (0)330 336 9125

For further information, please contact:

Investor relations:

Mirza Koristovic, Head of Investor Relations & 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