Bouvet

Quarterly Report • May 15, 2019

Report 2019

• A helper in the cloud More secure identity management Digitalised Norwegian rescue services Better control of SAP implementation Increasing quality and cutting costs for trains
• A partner for Norwegian energy
• Simplified and improved work processes nationwide
• Established digital expertise at our clients
• Contributed to efficient AI journeys
• Improving life for Norwegian pharmacists

We change, renew and improve

Key figures

NOK MILLION	JAN-MAR 2019	JAN-MAR 2018	CHANGE %	YEAR 2018
Revenue	564.3	462.3	22.1 %	1 846.7
Operating profit (EBIT)	68.8	50.5	36.2 %	191.6
Ordinary profit before tax	68.5	49.7	37.8 %	191.6
Profit for the period	53.4	38.6	38.4 %	150.5
Net cash flow operations	4.3	-14.6	N/A	219.0
Cash and cash equivalents	267.1	159.0	67.9 %	278.4
Number of employees (end of period)	1 405	1 260	11.5 %	1 369
Number of employees (average)	1 398	1 247	12.1 %	1 305
Earnings per share	5.21	3.79	37.4 %	14.80
Diluted earnings per share	5.16	3.76	37.4 %	14.66
EBIT-margin	12.2 %	10.9 %		10.4 %
Equity ratio	29.2 %	35.1 %		36.6 %

Bouvet in brief

We are a Scandinavian consultancy in the field of IT and digital communication. We support both private- and public-sector players in digitalising their operations, and help them to meet the challenges and exploit the opportunities presented by digital technology.

We are committed to maintaining long-term client relationships, and are a strategic partner for a number of enterprises where we work together on innovation, development and imple¬mentation of solutions. Clients value our good understanding of their activities, and the fact that our broad range of services means we can be a turnkey supplier.

Our client base includes a number of important social players, and we contribute together with them to the development of society. That is in line with our vision.

A close relationship can be maintained with clients because we pursue our assignments with a high level of integrity. In

addition to our standards for delivering good solutions, we set strict requirements for ethics, avoiding conflicts of interest, security, openness and trustworthiness.

Digital reality is always changing. To be able to handle this and to seize the opportunities which arise, we devote particular attention to the job satisfaction and expertise of our employees, continuous service development and our credibility as a long-term partner.

With a regional model where each office and organisational unit has considerable freedom, we have reduced bureaucracy and shortened decision paths. That gives us an adaptability which is essential for the ability to create good, flexible and durable solutions.

At 31 March 2019, we had 1 405 employees at 10 offices in Norway and three in Sweden.

BOUVET ASA Highlights of the first quarter

Won four-year frame agreement from the City of Bergen for digitalisation, innovation and enterprise development
Several client chose Bouvet as a digitalisation partner
Resolved to demerge the digitalisation platform Sesam as a separate company
Won a Hospitality Sales and Marketing Association International (HSMAI) award for the BouvetPlay concept, which was a weekend event for all group employees
Operating revenues up by 22.1 per cent from NOK 462.3 million in the first quarter of 2018 to NOK 564.3 million
Operating profit up by 36.2 per cent from NOK 50.5 million in the first quarter of 2018 to NOK 68.8 million
EBIT margin of 12.2 per cent, compared with 10.9 per cent in the same period of last year
Cash flow from operations positive at NOK 4.3 million, compared with a negative NOK 14.6 million for the first quarter of 2018
Employees up by 36 from 31 December and 145 over the past 12 months to reach 1 405

CEO'S COMMENTS

We collectively create opportunities for people, companies and society

We are continuing to deliver. Through our corporate culture, expertise and closeness to clients, we have been a driver for renewal and improvement during the quarter. New and existing clients invested in renewal, in part by exploiting technology in an intelligent way. This led during the quarter to many good solutions being adopted and to us continuing to create opportunities for people, enterprises and society together with our clients.

During the quarter, we started work on demerging the digitalisation platform Sesam into a separate company. This will continue to develop and sell the product in close cooperation with us and other partners.

The good market, new colleagues and our collective expertise helped us to present yet another quarter of growth and profitability.

Where I'm concerned, people are the most important consideration – both those we have and those we'll recruit. During the quarter, we experienced the pleasure and strength of being part of a vigorous culture where we design and develop good solutions in cooperation with our clients. With our regional organisation, we reach clients in most private sectors and in the public sector. They made increasing use of multidisciplinary teams from us during the quarter. With our knowledge, expertise, skills and capacity, we are participating in the exciting developments under way in the economy and society. Renewal is a matter of urgency for many companies. Supplementing their own expertise with our teams creates an edge and increases competitiveness. During the quarter, we were the first choice for companies which want to make a difference, and we have established a close and inspiring partnership with even more clients. That's exciting!

Our progress depends on able people. There are 1 405 of us today, and our numbers are steadily growing. All of us are involved in creating tomorrow's Bouvet, where our goal is to be the best workplace which builds long and close relations with our clients through good and forward-looking deliveries. To achieve that, we worked during the quarter on recruiting the right people and continuing to develop expertise in the group while also devoting attention to maintaining and advancing our unique culture.

It was decided during the quarter to demerge Sesam, the data platform product we have developed over the past five years, as a separate company. Sesam is used today by many clients, and will establish partnerships in the future with a number of companies which can sell and implement it in an international market.

"Through our corporate culture, expertise and closeness to clients, we are a driver for renewal and improvement."

The rapid pace of technological progress will continue to affect companies and society. We are and will remain a regional, national and increasingly international value creator who secures important expertise and jobs. And we will continue to contribute to society's development. That's something we're proud of.

Sverre Hurum President and CEO

Financial results

Operating revenues

Bouvet had operating revenues of NOK 564.3 million for the first quarter, compared with NOK 462.3 million in the same period of 2018. That represented a rise of 22.1 per cent. Fee income generated by the group's own consultants increased by NOK 81.6 million or 21 per cent from the first quarter of 2018. Income generated by sub-contractors grew by 15.2 million or 26.2 per cent from the same period of last year. Other revenues rose from NOK 16.2 million in the first quarter of 2018 to NOK 21.5 million.

The first quarter had one working day more than the same period of 2018. That had a positive effect of NOK 6.2 million on fee income generated by the group's own employees. Fewer days of holiday had a positive effect of NOK 6.8 million on fee income generated by the group's own employees, compared with the first quarter last year. At the same time, an increase of 12.1 per cent in the average number of employees had a positive effect of NOK 47.4 million on fee income generated by the group's own workforce. A 3.3 per cent rise in rates for the group's hourly based services compared with the first quarter of 2018 raised fee income by NOK 15.4 million. Reduced sickness absence in the first quarter compared with the same period of 2018 increased fee income by NOK 4.4 million. An 0.1 percentage point increase in the billing ratio for the group's consultants from the first quarter of 2018 had a positive effect of NOK 0.6 million on fee income generated by the group's own employees. In addition comes an overall positive impact of NOK 0.8 million related to such factors as overtime working,

leaves of absence and fixed-price projects. The total positive effect on fee income generated by the group's own employees was NOK 81.6 million.

Sales to existing clients made good progress during the quarter. Clients who also used the group in the first quarter of 2018 accounted for 94.3 per cent of operating revenues. In addition, clients acquired since 31 March 2018 contributed a total of NOK 32.1 million to first-quarter operating revenues.

Bouvet's strategy is to use services from sub-contractors when it lacks the capacity to meet demand with its own personnel or when clients require leading-edge expertise outside the group's priority areas. The sub-contractor share of total revenues was 13.0 per cent in the first quarter, compared with 12.6 per cent in the same period of 2018.

Operating costs

Bouvet's operating costs, including depreciation and amortisation, totalled NOK 495.5 million for the first quarter, up from NOK 411.7 million in the same period of 2018. That represented an increase of 20.3 per cent. Increased payroll costs reflected a higher average number of employees in addition to the general growth in pay rates. The group experienced a general rise in pay of 1.5 per cent over the past 12 months. The cost of sales rose to NOK 78.1 million, compared with NOK 64.1 million for the first quarter of 2018, and primarily comprised procurement of sub-contractor services, hire of course instructors and sales of software licences. The increase in the cost of sales primarily

Operating revenue

Operating profit (EBIT)

ANTALL ANSATTE VED PERIODENS SLUTT Number of employees (end of quarter)

reflected procurement of sub-contractor services. Viewed in isolation, implementation of IFRS 16 Leases from 1 January 2019 (see note 1) reduced other operating expenses by NOK 9.5 million compared with the first quarter of 2018. An overall NOK 5.9 million increase in the cost of premises, marketing and recruitment meant that other operating expenses showed a net reduction of NOK 3.6 million from the first quarter of 2018 and amounted to NOK 38.1 million. Depreciation and amortisation amounted to NOK 14.6 million, compared with NOK 6.4 million in the first quarter of 2018. Implementing IFRS 16 increased depreciation by NOK 8.7 million from the same period of last year.

Profit

Operating profit (EBIT) for the first quarter came to NOK 68.8 million, compared with NOK 50.5 million in the same period of 2018. That represents an increase of 36.2 per cent. The EBIT margin rose from 10.9 per cent in the first quarter of last year to 12.2 per cent. Net profit came to NOK 53.4 million, compared with NOK 38.6 million in the same period of 2018. Diluted earnings per share were NOK 5.16, compared with NOK 3.76 in the first quarter of last year.

Cash flow, liquidity and capital adequacy

Consolidated cash flow from operations was positive at NOK 4.3 million for the first quarter, compared with a negative NOK 14.6 million in the same period of 2018. Cash flow for the quarter was affected negatively by an increase of NOK 145.5 million from the fourth quarter of 2018 in working capital

related to clients and other current receivables. A reduction of NOK 3.7 million in payable direct and indirect taxes from the fourth quarter of 2018 also had a negative effect. Accounts payable and other current liabilities increased by NOK 83.4 million and had a positive effect on cash flow. Consolidated cash flow from operations over the past 12 months was NOK 237.8 million, and net profit for the same period came to NOK 165.3 million.

Capital spending in the quarter totalled NOK 6.1 million, including NOK 3.2 million for the acquisition of new operating assets and NOK 2.9 million for investment in intangible assets. The comparable figure for the first quarter of 2018 was NOK 21.1 million, including NOK 4 million for fixed operating assets, NOK 3.7 million on intangible assets and NOK 13.4 million to buy out minority shareholders in a subsidiary.

The group's client portfolio consists mainly of large, solid listed companies and public enterprises. No significant bad debts were suffered over the year, and the group has good oversight and control of its receivables.

Implementing IFRS 16 Leases (see note 1) with effect from 1 January 2019 led to balance-sheet recognition of NOK 263.4 million in right-to-use assets and NOK 263.4 million in liabilities related to the leases.

The group has no interest-bearing debt. Bank deposits at 31 March totalled NOK 267.1 million, compared with NOK 159

% Revenue public/private Revenue per business

OMSETNING FRA KUNDER

Revenue from customer 100 % public owned: 50.2 %

Revenue from customer wholly or partially private owned: 49.8 %

%

OMSETNING PER BRANSJE

Public admin	27.2 %
Oil & gas	25.6 %
Power supply	10.0 %
Transportation	8.4 %
Retail	5.9 %
Industry	4.8 %
Service industry	4.6 %
Bank & finance	4.4 %
Info and communication	4.2 %
Other	2.5 %
Health	2.4 %

million a year earlier. Of bank deposits at 31 March, the account for employee tax deductions totalled NOK 30.9 million. The group had an undrawn overdraft facility of NOK 100 million at 31 March. Bouvet held 1 264 of its own shares at 31 March. Equity at 31 March totalled NOK 332.4 million, representing an equity ratio of 29.2 per cent. The corresponding figures for 31 March 2018 were an equity of NOK 236.8 million and an equity ratio of 35.1 per cent. Implementation of IFRS 16 had a negative effect of 8.4 percentage points on the equity ratio at 31 March 2019.

Segment reporting

The group does not report internally by separate business areas. Its business is homogenous and pursued within the Scandinavian market for IT consultancy services. Risk and return are followed up for the business as a whole, with shared markets, on a project basis and per consultant. On that basis, the group has one reportable segment.

Progress and market

Market demand remained good during the first quarter of 2019. The priority given by clients to digitalisation and innovation, and their choice of Bouvet as a partner in this work, led to excellent progress and good results. The group 's long-term client relationships and overall expertise supported continued trust and continuity. Norway's Ministry of Foreign Affairs expanded Bouvet's involvement to include collaboration, artificial intelligence (AI), data analysis and system development. The City of Bergen awarded a new four-year frame agreement covering digitalisation, innovation and enterprise development in addition to extending existing assignments. The need for faster development and continuous access to expertise has resulted in closer collaboration with clients, and Bouvet has become an important digitalisation partner for both Equinor and the Norwegian Courts Administration among others.

The clients greater access to own data for use in business development and efficiency improvements has led to more enquiries in such areas as prediction analysis. Public transport authority Skyss has engaged Bouvet to increase the reliability of the Bergen light rail system by addressing icing on the track. The group will contribute to the digitalisation of maintenance processes at ConocoPhillips and Equinor. At the latter, Bouvet is also helping to strengthen offshore safety. The Omnia data platform developed in collaboration with Equinor and Microsoft occupies a key place in this work.

Bouvet's clients are in different phases of the "digitalisation journey". Establishing data platforms and utilising cloud services are important for many travellers on this voyage. During the quarter, DEA Norge entered into an agreement with Bouvet to establish a data platform, processes for data analysis, and real-time data capture.

Sesam, Bouvet's digitalisation platform, has developed a partner network which includes an increasing number of collaborators who now offer and recommend the product to their clients both nationally and internationally. Existing clients, such as Hafslund, Avinor and Aker Solutions, invested further in this product during the quarter.

Bouvet has continued to support work on renewing the public sector. With a partner, it won a major frame agreement from the Norwegian Labour and Welfare Administration (NAV)

covering the development and administration of solutions for case management. Trøndelag county council has engaged the group to deliver a new national health portal for resources and planning of health and care services in the local authorities. Deliveries in the quarter included the website for the Bergen International Festival and the Partiinsyn service to give the Swedish public access to details about the financing of political parties.

Knowledge of end-user behaviour and requirements, whether as employees or customers, is essential for achieving the desired effect from digital transformation and business development. Good interaction with the user is a success factor for business-critical solutions. Demand for service design and design-related services was therefore high in the quarter. Bouvet won a frame contract for service design from Statkraft, and is contributing work on customer insight to Glamox and Viken county council. Continuous efforts are being made to develop good user experiences across channels. Avinor provides a case in point, where Bouvet will support the development of information kiosks. The wholly owner Olavstoppen subsidiary holds leading-edge expertise in the development of digital services and has had a number of high-profile assignments, both nationally and internationally.

The market is shifting more towards commercially driven technological development, and Bouvet is increasingly delivering consultancy services. At the reMarkable start-up company, it is playing the role of "agile coach". Returkraft, one of Scandinavia's most modern and efficient waste-to-energy facilities, has chosen Bouvet to support an audit of the present solution and to develop an IT and digitalisation strategy.

Demand for system development is still high. Other services sought include collaboration, augmented reality and virtual reality. The commitment to mixed reality has been strengthened, and demand for the "connected technician" concept, which involves the use of mixed reality for doing technical work in the field, is on the rise.

The need for digital expertise led during the quarter to increased demand for courses, both open and internally in companies. New courses are being developed and Bouvet has delivered internal programmes to Aker BP on augmented/ virtual reality and quantum computing.

The attention devoted to culture, community and expertise development yielded good organic growth during the quarter. Bouvet's workforce increased by 36 people from the previous three months, and the group had 1 405 employees at 31 March – up by 145 from the same date in 2018.

Clients pursued change, renewal and improvement during the quarter. The group's expertise, corporate culture, and closeness to clients and employees has made it a driver in achieving precisely that. Its form of organisation, values and management principles have given the regional offices the freedom to develop services with new expertise profiles and modes of collaboration based on market requirements.

Job satisfaction and professional development in the workforce remain a high priority. Bouvet's ambition is to be the most credible consultancy with the best satisfied employees. To achieve this, constant efforts are made to continue developing a strong and open culture of sharing, so that employees acquire professional confidence and achieve trust and success in their assignments.

Bouvet will be a relevant employer for knowledge personnel in the meeting with tomorrow's demands for expertise. It has various development arenas such as internal schools, courses and conferences. By involving employees and other qualified people, these arenas are in constant development.

The recruitment market has been challenging during the quarter because of the lack of relevant expertise in the market and big competition over attracting the right candidates. Nevertheless, Bouvet succeeds in being an attractive employer among all age categories and service areas, and recruits candidates who choose the group because of its culture, team spirit and concentration on professional expertise.

Bouvet is making long-term efforts to increase the proportion of women in its workforce. This has been implemented as part of the recruitment process.

The group is exposed at any given time to various forms of operational, market and financial risk. The board and executive management work continuously on risk management and control. This is described in more detail under corporate

governance in the annual report for 2018 (section 10: risk management and internal control). In the board's view, no significant changes occurred over the past three months in the various risks to which the group is exposed.

Digitalisation will alter society fundamentally in the time to come. This must be managed in a way which creates value, with attention concentrated on people and sustainability. Enterprises are experiencing radical changes for user expectations of digital services and for seamlessness between all channels. That challenges organisations internally and changes their interaction with other enterprises in order to be able to deliver and compete, also against global players.

The need for rapid internal changes is helped or hindered by technology and by the digital strategies of enterprises. In other words, a new digital reality is also overtaking the enterprise's own organisational structure in order to encourage collaboration and increased productivity. Continuous development and innovation are crucial. The need is therefore growing for

Contacts

Sverre Hurum President and CEO Tel: +47 23 40 60 00 | +47 913 50 047

Erik Stubø CFO Tel: +47 23 40 60 00 | +47 950 36 011 strategic consultancy services and a closer partnership between client and provider in order to navigate the "digital journey".

Bouvet has the breadth of services, the structure for establishing cross-disciplinary teams, and the regional and adaptable model needed to tackle this development. That has proved valuable for developing the group's services and for its clients.

The need to ensure the right delivery capacity in a market characterised by a high level of demand creates a requirement for continuous recruitment of the right candidates in a tight market.

Bouvet is well positioned to maintain its ability to deliver to its clients.

Declaration by the board and CEO

We hereby confirm to the best of our knowledge that the interim financial statements for the first quarter of 2019 have been prepared in accordance with IAS 34, and that the information in the financial statements provides a true and fair picture of the overall assets, liabilities, financial position and overall financial results of the Bouvet ASA group. We also confirm to the best of our knowledge that the interim report provides a true and fair view of important events in the accounting period and their influence on the interim financial statements, the most important risk and uncertainty factors facing the business in the next accounting period, and significant transactions with close associates.

Oslo, 15 May 2019 The board of directors of Bouvet ASA

Pål Egil Rønn Chair of the board

Ingebrigt Steen Jensen

Director

Tove Raanes Deputy chair

Egil Christen Dahl Director

Grethe Høiland Director

Sverre Hurum President and CEO

Consolidated income statement

NOK 1 000	UNAUDITED JAN-MAR 2019	UNAUDITED JAN-MAR 2018	CHANGE	CHANGE %	YEAR 2018
Revenue	564 316	462 276	102 040	22.1 %	1 846 711
Operating expenses
Cost of sales	78 097	64 070	14 027	21.9 %	258 514
Personell expenses	364 704	299 579	65 125	21.7 %	1 178 968
Depreciation fixed assets	13 013	4 547	8 466	186.2 %	17 388
Amortisation intangible assets	1 546	1 852	-306	-16.5 %	7 414
Other operating expenses	38 114	41 695	-3 581	-8.6 %	192 865
Total operating expenses	495 474	411 743	83 731	20.3 %	1 655 149
Operating profit	68 842	50 533	18 309	36.2 %	191 562
Financial items
Interest income	637	487	150	30.8 %	1 815
Financial income	13	107	-94	-87.9 %	929
Interest expense	-195	-33	-162	490.9 %	-104
Finance expense	-767	-1 368	601	-43.9 %	-2 627
Net financial items	-312	-807	495	-61.3 %	13
Ordinary profit before tax	68 530	49 726	18 804	37.8 %	191 575
Income tax expense
Tax expense on ordinary profit	15 088	11 103	3 985	35.9 %	41 078
Total tax expense	15 088	11 103	3 985	35.9 %	41 078
Profit for the period	53 442	38 623	14 819	38.4 %	150 497
Assigned to:
Shareholders in parent company	53 442	38 623			150 497
Diluted earnings per share	5.16	3.76	1.40	37.4 %	14.66
Earnings per share	5.21	3.79	1.42	37.4 %	14.80

Consolidated statement of other income and costs

NOK 1 000	UNAUDITED JAN-MAR 2019	UNAUDITED JAN-MAR 2018	CHANGE	CHANGE %	YEAR 2018
Profit for the period	53 442	38 623	14 819	38.4 %	150 497
Items that may be reclassified through profit or loss in subsequent periods
Currency translation differences	-516	-463	-53	11.5 %	-28
Sum other income and costs	-516	-463	-53	11.5 %	-28
Total comprehensive income	52 926	38 160	14 766	38.7 %	150 469
Assigned to:
Shareholders in parent company	52 926	38 160			150 469

Consolidated balance sheet

NOK 1 000	UNAUDITED 31.03.2019	UNAUDITED 31.03.2018	CHANGE	CHANGE %	31.12.2018
ASSETS
NON-CURRENT ASSETS
Intangible assets
Deferred tax asset	0	303	-303	-100.0 %	0
Goodwill	32 591	32 669	-78	-0.2 %	32 944
Other intangible assets	35 288	29 625	5 663	19.1 %	34 070
Total intangible assets	67 879	62 597	5 282	8.4 %	67 014
Fixed assets
Office equipment	25 002	15 607	9 395	60.2 %	25 187
Office machines and vehicles	5 543	3 158	2 385	75.5 %	5 907
IT equipment	19 580	18 821	759	4.0 %	20 112
Right-of-use assets	254 624	0	254 624	N/A	0
Total fixed assets	304 749	37 586	267 163	710.8 %	51 206
Financial non-current assets
Other financial assets	11	116	-105	-90.5 %	11
Other long-term receivables	1 889	1 942	-53	-2.7 %	1 935
Total financial non-current assets	1 900	2 058	-158	-7.7 %	1 946
Total non-current assets	374 528	102 241	272 287	266.3 %	120 166
CURRENT ASSETS
Work in progress	87 685	99 122	-11 437	-11.5 %	55 520
Trade accounts receivable	361 573	268 068	93 505	34.9 %	269 718
Other short-term receivables	48 731	45 894	2 837	6.2 %	32 765
Cash and cash equivalents	267 094	159 037	108 057	67.9 %	278 388
Total current assets	765 083	572 122	192 961	33.7 %	636 391
TOTAL ASSETS	1 139 611	674 363	465 248	69.0 %	756 557

Consolidated balance sheet

NOK 1 000	UNAUDITED 31.03.2019	UNAUDITED 31.03.2018	CHANGE	CHANGE %	31.12.2018
EQUITY AND LIABILITIES
EQUITY
Paid-in capital
Share capital	10 250	10 250	0	0.0 %	10 250
Own shares - nominal value	-1	-97	96	-99.0 %	-1
Share premium fund	10 000	10 000	0	0.0 %	10 000
Total paid-in capital	20 249	20 153	96	0.5 %	20 249
Earned equity
Other equity	312 142	216 687	95 455	44.1 %	256 744
Total earned equity	312 142	216 687	95 455	44.1 %	256 744
Total equity	332 391	236 840	95 551	40.3 %	276 993
DEBT
Long-term debt
Lease liabilities	217 184	0	217 184	N/A	0
Deferred tax	82	0	82	N/A	574
Total long-term debt	217 266	0	217 266	N/A	574
Short-term debt
Current lease liabilities	36 839	0	36 839	N/A	0
Trade accounts payable	70 565	51 814	18 751	36.2 %	58 012
Income tax payable	39 161	30 890	8 271	26.8 %	41 279
Public duties payable	167 471	141 437	26 034	18.4 %	169 088
Deferred revenue	11 183	12 346	-1 163	-9.4 %	16 678
Other short-term debt	264 735	201 036	63 699	31.7 %	193 933
Total short-term debt	589 954	437 523	152 431	34.8 %	478 990
Total liabilities	807 220	437 523	369 697	84.5 %	479 564
TOTAL EQUITY AND LIABILITIES	1 139 611	674 363	465 248	69.0 %	756 557

Consolidated statement of cash flows

NOK 1 000	UNAUDITED JAN-MAR 2019	UNAUDITED JAN-MAR 2018	YEAR 2018
Cash flow from operating activities
Ordinary profit before tax	68 530	49 726	191 576
Paid tax	-17 250	-11 853	-30 807
(Gain)/loss on sale of fixed assets	-10	-10	-406
Ordinary depreciation	13 013	4 547	17 388
Amortisation intangible assets	1 546	1 852	7 414
Share based payments	1 983	1 793	7 272
Changes in work in progress, accounts receivable and accounts payable	-111 467	-62 809	-14 658
Changes in other accruals	47 913	2 146	41 192
Net cash flow from operating activities	4 259	-14 608	218 971
Cash flows from investing activities
Sale of fixed assets	32	50	574
Purchase of fixed assets	-3 217	-4 019	-30 609
Purchase of intangible assets	-2 866	-3 747	-13 718
Investment in subsidiaries - net cash	0	-13 390	-13 390
Net cash flow from investing activities	-6 052	-21 106	-57 143
Cash flows from financing activities
Purchase of own shares	0	-10 620	-19 544
Sales of own shares	0	0	17 858
Payments on lease liabilities	-9 501	0	0
Dividend payments	0	0	-87 125
Net cash flow from financing activities	-9 501	-10 620	-88 811
Net changes in cash and cash equivalents	-11 294	-46 334	73 017
Cash and cash equivalents at the beginning of the period	278 388	205 371	205 371
Cash and cash equivalents at the end of the period	267 094	159 037	278 388

Consolidated statement of changes in equity

NOK 1 000	SHARE CAPITAL	OWN SHARES	SHARE PREMIUM	TOTAL PAID-IN EQUITY	OTHER EQUITY	TRANSLATION DIFFERENCES	TOTAL OTHER EQUITY	NON-CON TROLLING INTERESTS	TOTAL EQUITY
Equity at 01.01.2018	10 250	-47	10 000	20 203	197 659	-472	197 186	3 019	220 408
Profit for the period					38 623		38 623		38 623
Other income and costs						-463	-463		-463
Purchase/sale of own shares (net)		-50		-50	-10 570		-10 570		-10 620
Employee share scheme					2 282		2 282		2 282
Change non-controlling interests					-10 371		-10 371	-3 019	-13 390
Equity at 31.03.2018 (Unaudited)	10 250	-97	10 000	20 153	217 623	-934	216 687	0	236 840
Equity at 01.01.2019	10 250	-1	10 000	20 249	257 244	-500	256 744	0	276 993
Profit for the period					53 442		53 442		53 442
Other income and costs						-516	-516		-516
Employee share scheme					2 472		2 472		2 472
Equity at 31.03.2019 (Unaudited)	10 250	-1	10 000	20 249	313 158	-1 016	312 142	0	332 391

Notes

Note 1: Accounting principles

The group made no changes to the accounting principles applied in 2018. This interim report is presented in accordance with the International Financial Reporting Standards (IFRS) and interpretations determined by the European Union, and have been prepared in accordance with IAS 34. The interim financial statements have not been audited, do not include all the information required in annual financial statements and should be viewed in conjunction with the group's annual report for 2018.

The accounting policies applied are consistent with those applied in previous financial year, except for the implementation of IFRS 16 Leases.

IFRS 16 Leases

The Group has adopted IFRS 16 Leases on 1 January 2019. The standard replaces IAS 17 Leases and sets out the principles for the recognition, measurement and presentation of leases. The new standard requires lessees to recognise assets and liabilities for most leases. Bouvet has chosen to adopt IFRS 16 using the modified retrospective approach, with its exemptions, where lease contracts for which the lease terms ends within 12 months as of date of initial application, and lease contracts for which the underlying asset is of low value is not included.

For the Group leases related to office premises is mainly what will be affected by IFRS 16. Bouvet leases office premises at the 13 places where business is operated. As at 1 January 2019 it is capitalised right-of-use-assets and lease liabilities of NOK 263 361 thousand. This reduces the equity ratio of 9.5 percentage points.

Comparative figures IFRS 16 versus IAS 17

Reconciliation of lease commitments (IAS 17) to lease liabilities (IFRS 16):

NOK 1 000	01.01.2019
Operating lease commitments at 31 December 2018	289 210
Short-term leases	-1 252
Low-value leases	-419
Change in existing leases	548
Discounted using incremental borrowing rate	-24 726
Lease liabilities	263 361
Incremental borrowing rate	2 %

In accordance with the new regulations leases recognised in the balance sheet will be depreciated over the lease period and recognised together with the Group's remaining depreciations. Interest effect from the discount calculation will be recognised as financial items. Due to the new regulations the Group's EBIT will slightly increase, provided the same type and number of lease objects.

Leases the Group holds 1 January 2019 will increase the EBIT with NOK 3 053 thousand for the year 2019. Annual depreciations will increase with NOK 34 949 thousand and operating expenses will decrease with NOK 38 003 thousand. Interest effect will be NOK 651 thousand. Actual EBIT effect will be influenced by changes in existing leases and new leases added.

	IFRS 16	IAS 17
NOK 1 000	JAN-MAR 2019	JAN-MAR 2019	JAN-MAR 2018
Revenue	564 316	564 316	462 276
Operating expenses (ex. depreciation and amortisation)	480 915	490 416	405 344
EBITDA	83 401	73 900	56 932
Depreciation and amortisation	14 559	5 822	6 399
EBIT	68 842	68 078	50 533
Financial items	-312	-149	-807
Ordinary profit before tax	68 530	67 929	49 726

The Group is primarily delivering its services based on time and material used and has in most cases legal rights for payment for services delivered at date. In cases where the Group has income from projects with predefined results at a fixed price or which has elements causing the income per hour to be unknown before completion of the project, the income is recorded in correlation with the degree of completion. Progress is measured as incurred hours in relation to totally estimated hours. For these projects the customer controles the asset being made or improved. The Group is therefore very little affected by the changes caused from adoption of IFRS 15.

Specification revenue:

Contract category Fixed- and target price 9 068 11 946 Variable contracts 555 248 450 330 Total revenue 564 316 462 276 Business sector Bank & finance 25 161 17 997 Power supply 56 660 41 250 Health 13 446 11 732 Industry 18 652 26 943 Info and communication 23 808 30 001 Public admin 153 583 124 922 Oil & gas 144 571 104 234 Service industry 25 772 24 061 Transportation 47 335 47 568 Retail 33 116 29 140 Other 13 922 12 719 Total revenue 564 316 462 276 Public/privat sector Public sector (100% owned) 283 268 234 934 Privat sector 281 048 227 342 Total revenue 564 316 462 276 Work in progress 87 685 99 122 Deferred revenue 11 183 12 346	NOK 1 000	JAN-MAR 2019	JAN-MAR 2018

At the balance sheet date, processed but not billed services amounted to NOK 87.69 million (2018.03.31: NOK 99.12 million). This is mainly services delivered on running account, invoiced to customers at the beginning of the next month.

Intangible assets and goodwill are related to added value from the acquisitions of subsidiaries, businesses, and costs related to development of software and internally developed internet homepage.

NOK 1 000	SOFTWARE	OTHER INTANGIBLE ASSETS	GOODWILL	JAN-MAR 2019	SOFTWARE	OTHER INTANGIBLE ASSETS	GOODWILL	JAN-MAR 2018
Book value 1 January	27 906	6 165	32 944	67 015	20 002	7 762	33 460	61 224
Additions of the period	0	0	0	0		931	0	931
Self-developed software	2 866	0	0	2 866	2 817	0	0	2 817
Amortisation	-1 290	-256	0	-1 546	-1 152	-700	0	-1 852
Exchange rate variances	0	-102	-353	-455	0	-35	-791	-826
Book value end of period	29 482	5 807	32 591	67 879	21 667	7 958	32 669	62 294
Amortisation rate	20 %	10-20%	N/A		20 %	10-20%	N/A
Economic life	5 years	5-10 years	not decided		5 years	5-10 years	not decided
Amortisation method	linear	linear	N/A		linear	linear	N/A

The group is developing a software for sale, Sesam, that works as a search engine for enterprise data. Sesam can collect all type of information, tie it together and make use of the compound information in a range of valuable services. Version 3 of Sesam was completed September 2016 with investment costs of NOK 10 783 thousand. Version 4 of Sesam was completed December 2017 with investment costs of NOK 12 250 thousand. Version 5 is under development and one part was completed in June 2018 and taken use of in July 2018. The rest has an expected completion during first half year of 2019. So far the investment costs is NOK 15 653 thousand. All versions has an economic life of 5 years.

Note 4: Share capital and dividend

SHARES IN THOUSANDS	JAN-MAR 2019	JAN-MAR 2018
Ordinary shares, nominal value NOK 1	10 250	10 250
Total number of shares	10 250	10 250

The nominal value of the share is NOK 1. All shares in the company have equal voting rights and are equally entitled to dividend. Proposed dividend to be approved at the annual general meeting May 2019 amounts to NOK 13.00 per share.

Changes in share capital and premium

	NO. OF SHARES		SHARE CAPITAL
NOK 1 000	JAN-MAR 2019	JAN-MAR 2018	JAN-MAR 2019	JAN-MAR 2018
Ordinary shares issued and fully paid at 31.12.	10 250	10 250	10 250	10 250
Own shares at nominal value	-1	-97	-1	-97

In the period, Bouvet ASA, has not purchased any own shares. The company owns 1 246 own shares at the end of the period.

			NO. OF SHARES
NAME	ROLE	31.12.2018	BUY	SALE	31.03.2019
Pål Egil Rønn	Chairman of the Board	0	5 000		5 000
Tove Raanes	Vice-chairman of the Board	895			895
Grethe Høiland	Board member	0			0
Ingebrigt Steen Jensen	Board member	0	1 140		1 140
Egil Christen Dahl	Board member	453 502			453 502
Sverre F. Hurum	CEO	508 779		-5 000	503 779
Erik Stubø	CFO	238 279			238 279
Total		1 201 455	6 140	-5 000	1 202 595

Shares in the company directly or indirectly owned by the board and management

Note 6: Events after the balance sheet date

There have been no events after the balance sheet date significantly effecting the Group's financial position.

Alternative Performance Measures

The European Securities and Markets Authority ("ESMA") issued guidelines on Alternative Performance Measures ("APMs") that came into force on July 3, 2016. Bouvet discloses APMs that are frequently used by investors, analysts, and other interested parties. The management believes that the disclosed APMs provide improved insight into the operations, financing, and prospects of Bouvet. Bouvet has defined the following APMs:

EBITDA is short for earnings before interest, taxes, depreciation, and amortization. EBITDA is calculated as profit for the period before tax expense, financial items, depreciation, and amortization.

EBIT is short for earnings before interest and taxes. EBIT corresponds to operating profit in the consolidated income statement.

Net free cash flow is calculated as net cash flow from operations plus net cash flow from investing activities. EBITDA-margin is calculated as EBITDA divided by revenue.

EBIT-margin is calculated as EBIT divided by revenue.

Cash flow margin is calculated as Net cash flow from operations divided by revenue.

Equity ratio is calculated as total equity divided by total assets.

Liquidity ratio is calculated as current assets divided by short-term debt.

Key figures Group

INCOME STATEMENT
Operating revenue 564 316 462 276 22.1 %	1 846 711
EBITDA 74 664 56 932 31.1 %	216 364
Operating profit (EBIT) 68 842 50 533 36.2 %	191 562
Ordinary profit before tax 68 530 49 726 37.8 %	191 575
Profit for the period 53 442 38 623 38.4 %	150 497
EBITDA-margin 13.2 % 12.3 %	7.4 % 11.7 %
EBIT-margin 12.2 % 10.9 % 11.6 %	10.4 %
BALANCE SHEET
Non-current assets 374 528 102 241 266.3 %	120 166
Current assets 765 083 572 122 33.7 %	636 391
Total assets 1 139 611 674 363 69.0 %	756 557
Equity 332 391 236 840 40.3 %	276 993
Long-term debt 217 266 0	N/A 574
Short-term debt 589 954 437 523 34.8 %	478 990
Equity ratio 35.1 % -17.0 % 29.2 %	36.6 %
Liquidity ratio 1.30 1.31 -0.8 %	1.33
CASH FLOW
Net cash flow operations 4 259 -14 608	N/A 218 971
Net free cash flow -1 793 -35 714	N/A 161 828
Net cash flow -11 294 -46 334	N/A 73 017
Cash flow margin 0.8 % -3.2 %	N/A 11.9 %
SHARE INFORMATION
Number of shares 10 250 000 10 250 000	0.0 % 10 250 000
Weighted average basic shares outstanding 10 248 736 10 178 836	0.7 % 10 169 093
Weighted average diluted shares outstanding 10 351 368 10 277 344	0.7 % 10 268 110
EBIT per share 6.72 4.96 35.3 %	18.84
Diluted EBIT per share 6.65 4.92 35.3 %	18.66
Earnings per share 5.21 3.79 37.4 %	14.80
Diluted earnings per share 5.16 3.76 37.4 %	14.66
Equity per share 32.43 23.11 40.3 %	27.02
Dividend per share 0.00 0.00	N/A 8.50
EMPLOYEES
Number of employees (year end) 1 405 1 260 11.5 %	1 369
Average number of employees 1 398 1 247 12.1 %	1 305
Operating revenue per employee 404 371	8.9 % 1 415
Operating cost per employee 354 330	7.3 % 1 268
EBIT per employee 49 41 21.5 %	147

Definitions

Cash flow margin	Net cash flow operations / Operating revenue
Diluted earnings per share	Profit for the period assigned to shareholders in parent company / weighted average diluted shares outstanding
Diluted EBIT per share	EBIT assigned to shareholders in parent company / weighted average diluted shares outstanding
Dividend per share	Paid dividend per share througout the year
Earnings per share	Profit for the period assigned to shareholders in parent company / weighted average basic shares outstanding
EBIT	Operating profit
EBIT per employee	EBIT / average number of employees
EBIT per share	EBIT assigned to shareholders in parent company / weighted average basic shares outstanding
EBITDA	Operating profit + depreciation fixed assets and intangible assets
EBITDA-margin	EBITDA / operating revenue
EBIT-margin	EBIT / operating revenue
Equity per share	Equity / number of shares
Equity ratio	Equity / total assets
Liquidity ratio	Current assets / Short-term debt
Net free cash flow	Net cash flow operations - Net cash flow investments
Number of shares	Number of issued shares at the end of the year
Operating cost per employee	Operating cost / average number of employees
Operating revenue per employee	Operating revenue / average number of employees
Weighted average basic shares outstanding	Issued shares adjusted for own shares on average for the year
Weighted average diluted shares outstanding	Issued shares adjusted for own shares and share scheme on average for the year

Our regions and offices

The Group has 13 offices in Norway and Sweden. Our philosophy is that competence should be utilized across the company, while projects are attached locally.

OSLO

Sørkedalsveien 8 NO-0369 Oslo P. O. Box 5327 Majorstuen NO-0304 Oslo Tel: (+47) 23 40 60 00

ARENDAL

Frolandsveien 6 NO-4847 Arendal Tel: (+47) 23 40 60 00

BERGEN

Solheimsgaten 15 NO-5058 Bergen Tel: (+47) 55 20 09 17

GRENLAND

Uniongata 18 Klosterøya NO-3732 Skien Tel: (+47) 23 40 60 00

KRISTIANSAND

Kjøita 25 NO-4630 Kristiansand Tel: (+47) 23 40 60 00

STAVANGER

Laberget 28 NO-4020 Stavanger P. O. Box 130 NO-4065 Stavanger Tel: (+47) 51 20 00 20

HAUGESUND

Diktervegen 8 NO-5538 Haugesund Tel: (+47) 52 82 10 17

TRONDHEIM

Kjøpmannsgata 35 NO-7011 Trondheim Tel: (+47) 23 40 60 00

SANDVIKA Leif Tronstadsplass 7 NO-1337 Sandvika Tel: (+47) 23 40 60 00

SANDEFJORD Fokserødveien 12 NO-3241 Sandefjord Tel: (+47) 23 40 60 00

STOCKHOLM

Östermalmsgatan 87 A 114 59 Stockholm Tel: (+ 46) 0 771 611 100

BORLÄNGE

Forskargatan 3 781 70 Borlänge Tel: (+46) 0 771 611 100

ÖREBRO

Kungsgatan 1 702 11 Örebro Tel: (+46) 0 709 431 411

en.bouvet.no