Bouvet

Quarterly Report • Aug 22, 2019

Interim presentation Second quarter 2019

Sverre Hurum, CEO

Erik Stubø, CFO

22 August 2019

Highlights in the quarter

o Revenue and EBIT

• Operating revenues increased by 14.3 percent to NOK 518.4 million (y-o-y)
• EBIT increased by 6.3 percent to NOK 59.3 million (y-o-y)
• o 1 455 employees
• Up 50 from Q1'19
• An increase of 151 in the past 12 months
• o Still strong market

Revenue and number of employees MNOK and number

Operational Review

Public and private sector

Business sectors Q2 2019

Sectors with high increase in revenue

o Oil & gas

• Increased by 25.4 percent (y-o-y)
• Represents 27.7 percent of total revenues in Q2'19

o Public admin

• Increased by 18.1 percent (y-o-y)
• Represents 27.3 percent of total revenues in Q2'19

o Industry

• Increased by 37.2 percent (y-o-y)
• Represents 4.8 percent of total revenues in Q2'19

o Bank & finance

• Increased by 13.8 percent (y-o-y)
• Represents 4.1 percent of total revenues in Q2'19

New information and arrival center at Oslo Airport

• o Developed in partnership with several cross-functional organizations
• o The initial delivery is foundation for further enhancements and development, based on knowledge and data
• o Bouvet´s deliveries:
• Software architecture
• Multi lingual self service information kiosks
• Service design and user experience

Statnett has signed an agreement with Bouvet

• o Statnett has signed an agreement with Bouvet on the development and governance of IT-solutions
• o The duration of the agreement is up to 6 years
• o Estimated value between 1200 and 1500 million NOK

o Swedish Medical Products Agency has trusted Bouvet and Sesam to develop management system for side effects and signals for human and veterinary medicine

Swedish Medical Products Agency

Signed new agreement with

• o The project has a value of approximately 21 MSEK and application management of 4 years will be added
• o Duration up to 6 years including project and application management

Some of Bouvet´s consulting services

• o Strategic level
• Digital leadership, roadmap and strategy
• Innovation services
• Organizational change
• Service design

• Sustainability

• o Operational level

• Enterprise, information and functional architecture
• Program, project, product and change management
• Agile Coaching
• QA lead
• Business Intelligence

Customer and project mix

• o Project mix
• Variable contracts account for 98.0 percent of total revenues
• o Customer portfolio
• The 10 largest customers represent 39.2 percent of total revenues – up from 37.4 percent in Q2'18
• The 20 largest customers represent 50.3 percent of total revenues – up from 49.6 percent in Q2'18

Variably priced contracts share of revenues Percentage

Customer development

o Existing customers*

• Accounted for 94.1 percent of revenues in Q2'19
• o New customers**
• Customers won over the past year generated revenues of NOK 30.6 million in Q2'19

* 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

Q2'18 Q2'19

0

100

Enthusiastic and competent employees

• o 1 455 employees at the end of the quarter
• Up 50 from Q1'19
• 151 more employees in the past 12 months
• Average number of employees in the quarter up 11.5 percent from Q2'18

Annual growth in number of employees

Magnet award 2019 NM – employer branding

• o «24 hours hackathon»
• Gold Open category
• Bronze Best campaign

Financial Review

Key figures

	Three months ending				Six months ending			Twelve months ending
MNOK	30.06.2019	30.06.2018	Change	30.06.2019	30.06.2018	Change	30.06.2019	30.06.2018	Change
Operating revenue	518.4	453.7	14.3 %	1 082.7	915.9	18.2 %	2 013.4	1 718.6	17.2 %
Operating profit (EBIT)	59.3	55.7	6.3 %	128.1	106.3	20.5 %	213.4	172.4	23.8 %
EBIT margin	11.4 %	12.3 %		11.8 %	11.6 %		10.6 %	10.0 %
Ordinary profit before tax	59.3	55.3	7.2 %	127.9	105.1	21.7 %	214.4	171.9	24.7 %
Profit for the period	46.4	42.9	8.1 %	99.8	81.5	22.4 %	168.8	133.7	26.2 %
EPS (fully diluted)	4.49	4.19	7.1 %	9.65	7.94	21.5 %	16.37	13.05	25.5 %
Net cash flow operations	32.2	31.8	1.5 %	36.5	17.2	112.7 %	238.3	173.3	37.5 %
Equity ratio	23.4 %	31.9 %		23.4 %	31.9 %		23.4 %	31.9 %
Cash and cash equivalents	138.8	87.7	58.3 %	138.8	87.7	58.3 %	138.8	87.7	58.3 %
Number of employees (end of period)	1 455	1 304	11.6 %	1 455	1 304	11.6 %	1 455	1 304	11.6 %
Number of employees (average)	1 435	1 287	11.5 %	1 416	1 268	11.7 %	1 381	1 237	11.6 %

Revenue

• o Revenues increased by 14.3 percent y-o-y
• Revenues from own consultants increased by 13.7 percent to NOK 429.5 million
• Revenues from sub-contracted consultants increased by 16.0 percent to NOK 69.5 million
• Other revenues increased by 22.1 percent to NOK 19.3 million

Revenue split (quarterly figures) MNOK

Revenue split (12 months rolling average) MNOK

Revenues from own consultants

• o Increased 13.7 percent y-o-y
• Positive impact from 11.5 percent increase in average number of employees
• Positive impact from 4.2 percent increase in prices for group hourly services
• Positive impact from increase in billing ratio by 0.7 percentage points
• 58 workdays in Q2'19 two less than Q2'18

Revenue per employee (quarterly figures) 0 100 200 300 400 Q2'15 Q2'16 Q2'17 Q2'18 Q2'19 TNOK

TNOK

Analysis of change in revenues y-o-y

Earnings

• o Operating profit (EBIT) increased by 6.3 percent to NOK 59.3 million
• o EBIT margin of 11.4 percent compared to 12.3 percent in Q2'18
• o Operating expenses increased by 15.4 percent y-o-y
• o General growth in pay rate 2.4 percent y-o-y
• o Other operating expenses decreased 4.9 percent y-o-y, due to IFRS 16

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 32.2 million in Q2'19 compared to NOK 31.8 million in Q2'18
• o Last 12 months
• Operational cash flow over the last 12 months was NOK 238.3 million
• o Cash flow from investing activities
• Negative NOK 6.5 million compared to negative NOK 16.0 million in Q2'18

Cash flow from operations (LTM)

Outlook

• o High demand
• o Increased demand for cross functional teams
• o Increased demand for platform, IoT, security and cloud competence
• o Challenging recruitment
• o Many newly graduated to be onboarded in Q3

Shareholders as of 22.08.2019

Shareholders	Number of shares	% of total
VARNER KAPITAL AS	1 070 000	10,44 %
Virtus KAR International Small-Cap	922 781	9,00 %
STENSHAGEN INVEST AS	736 699	7,19 %
VERDIPAPIRFONDET NORDEA AVKASTNING	618 583	6,03 %
SVERRE HURUM	491 779	4,80 %
VEVLEN GÅRD AS	453 502	4,42 %
MP PENSJON PK	440 082	4,29 %
ERIK STUBØ	238 279	2,32 %
UBS Switzerland AG	203 700	1,99 %
VERDIPAPIRFONDET NORDEA KAPITAL	169 284	1,65 %
STOREBRAND NORGE I VERDIPAPIRFOND	161 326	1,57 %
TELENOR PENSJONSKASSE	140 000	1,37 %
State Street Bank and Trust Comp	136 006	1,33 %
SIX SIS AG	134 582	1,31 %
ANDERS VOLLE	116 151	1,13 %
DYVI INVEST AS	99 787	0,97 %
VERDIPAPIRFONDET NORDEA NORGE PLUS	83 243	0,81 %
NILS-HÅKAN RADIG	75 172	0,73 %
EMPLOYEES RETIR SYSTEM OF TEXAS	72 400	0,71 %
PAUL HALLAN SVENDSEN	69 620	0,68 %
Number of shares held by the 20 largest shareholders	6 432 976	62,74 %