Bouvet

Investor Presentation • May 15, 2019

Interim presentation First quarter 2019

Sverre Hurum, CEO

Erik Stubø, CFO

15 May 2019

Highlights in the quarter

o Revenue and EBIT

• • Operating revenues increased by 22.1 percent to NOK 564.3 million (y-o-y)
• • EBIT increased by 36.2 percent to NOK 68.8 million (y-o-y)
• o 1 405 employees
  • • Up 36 from Q4'18
  • • An increase of 145 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 Q1 2019

Sectors with high increase in revenue

o Oil & gas

• • Increased by 38.8 percent (y-o-y)
• • Represents 25.6 percent of total revenues in Q1'19

o Power supply

• • Increased by 37.4 percent (y-o-y)
• • Represents 10.0 percent of total revenues in Q1'19

o Industry

• • Increased by 44.5 percent (y-o-y)
• • Represents 4.8 percent of total revenues in Q1'19

o Bank & finance

• • Increased by 39.9 percent (y-o-y)
• • Represents 4.5 percent of total revenues in Q1'19

Returkraft – transforming garbage into energy

• o Mapping and assessment of today's IT operations, organization and infrastructure
• o Establishing a future-oriented and functional IT and operations strategy
• o Bouvet provides a team of advisors in 2019

Partner for digital transformation with DEA Norge AS

o Bouvet is selected as the exclusive partner to help develop their strategic digitalisation roadmap.

City of Oslo - Service design

• o Assists the City of Oslo acquiring and implementing welfare technology within its municipal healthcare services
• o Developing a modern IoT and SaaS service management model
• o Based on Service design methodology and principles
• o Duration 3+ years, ongoing

Figure: A typical Welfare technology service design ecosystem

Customer and project mix

• o Project mix
  • • Variable contracts account for 98.1 percent of total revenues
• o Customer portfolio
  • • The 10 largest customers represent 39.0 percent of total revenues – up from 36.9 percent in Q1'18
  • • The 20 largest customers represent 50.5 percent of total revenues – up from 49.4 percent in Q1'18

Variably priced contracts share of revenues Percentage

Customer development

o Existing customers*

• • Accounted for 94.3 percent of revenues in Q1'19
• o New customers**
  • • Customers won over the past year generated revenues of NOK 32.1 million in Q1'19

* 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

Q1'18

Q1'19

Enthusiastic and competent employees

• o 1 405 employees at the end of the quarter
  • • Up 36 from Q4'18
  • • 145 more employees in the past 12 months
  • • Average number of employees in the quarter up 12.1 percent from Q1'18

Annual growth in number of employees

Percentage

Financial Review

Key figures

O K	3 1. 0 3. 2 0 1 9	3 1. 0 3. 2 0 1 8
			ha C ng e	3 1. 0 3. 2 0 1 9	3 1. 0 3. 2 0 1 8	C h a n g e
ing t era re ve nu e	5 6 4. 3	4 6 2. 3	2 2. 1 %	1 9 4 8. 8	1 6 5 0. 6	1 8. 1 %
( ) ing f i t t E B I T era p ro	6 8. 8	5 0. 5	3 6. 2 %	2 0 9. 9	1 5 3. 5	3 6. 7 %
T m in arg	1 2. 2 %	1 0. 9 %		1 0. 8 %	9. 3 %
d ina f i be for t tax ry p ro e	6 8. 5	4 9. 7	% 3 7. 8	2 1 0. 4	1 5 4. 1	% 3 6. 5
f i for he io d t t p er	5 3. 4	3 8. 6	3 8. 4 %	1 6 5. 3	1 1 9. 1	3 8. 7 %
( fu l ly d lu d ) S i te	5. 1 6	3. 7 6	3 7. 4 %	1 6. 0 7	1 1. 6 2	3 8. 3 %
h f low ion t c t as op era s	4. 3	-1 4. 6	/ A N	2 3 8 7.	1 4 7. 7	6 1. 0 %
i io ty t u ra	2 9. 2 %	3 5. 1 %		2 9. 2 %	3 5. 1 %
h a d c h e len iva ts n as q u	2 6 1 7.	1 9. 0 5	6 9 % 7.	2 6 1 7.	1 9. 0 5	6 9 % 7.
be f e loy ( d o f p d ) io m r o mp ee s en er	1 4 0 5	1 2 6 0	1 1. 5 %	1 4 0 5	1 2 6 0	1 1. 5 %
be f e loy ( ) m r o mp ee s ave rag e	1 3 9 8	1 2 4 7	1 2. 1 %	1 3 4 4	1 2 0 5	1 1. 5 %

Revenue

• o Revenues increased by 22.1 percent y-o-y
  • • Revenues from own consultants increased by 21.0 percent to NOK 469.6 million
  • • Revenues from sub-contracted consultants increased by 26.2 percent to NOK 73.3 million
  • • Other revenues increased by 32.3 percent to NOK 21.5 million

Revenue split (quarterly figures) MNOK

Revenues from own consultants

• o Increased 21.0 percent y-o-y
  • • Positive impact from 12.1 percent increase in average number of employees
  • • Positive impact from 3.3 percent increase in prices for group hourly services
  • • Positive impact from increase in billing ratio by 0.1 percentage points
  • • 63 workdays in Q1'19 – one more than Q1'18

Revenue per employee (quarterly figures) TNOK

TNOK

400

Analysis of change in revenues y-o-y

Earnings

• o Operating profit (EBIT) increased by 36.2 percent to NOK 68.8 million
• o EBIT margin of 12.2 percent compared to 10.9 percent in Q1'18
• o Operating expenses increased by 20.3 percent y-o-y
• o General growth in pay rate 1.5 percent y-o-y
• o Other operating expenses decreased 8.6 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

Revenue MNOK

Cash flow

o Cash flow from operations

• • NOK 4.3 million in Q1'19 compared to negative NOK 14.6 million in Q1'18
• o Last 12 months
  • • Operational cash flow over the last 12 months was NOK 237.8 million
• o Cash flow from investing activities
  • • Negative NOK 6.1 million compared to negative NOK 21.1 million in Q1'18

Outlook

• o High demand
• o Increased demand for crossfunctional teams
• o Increased demand for continuous development, from project to product development
• o Increased demand for platform, IoT, security and cloud competence

Shareholders as of 15.05.2019

ha ho l de S re rs	be f s ha Nu m r o res	% f l to ta o
V A R N E R K A P I T A L A S	1 0 7 0 0 0 0	1 0, 4 4 %
l l l- V ir K A R In ion Sm Ca tu te t s rna a a p	9 1 7 8 7 0	8, 9 5 %
S T E N S H A G E N I N V E S T A S	7 3 6 6 9 9	% 7, 1 9
V E R D I P A P I R F O N D E T N O R D E A A V K A S T N I N G	6 1 8 5 8 3	6, 0 3 %
S V E R R E H U R U M	5 0 3 7 7 9	4, 9 1 %
Å G S V E V L E N R D A	3 0 2 4 5 5	2 % 4, 4
M P P E N S J O N P K	4 4 4 0 8 2	4, 3 3 %
Ø E R I K S T U B	2 3 8 2 7 9	2, 3 2 %
i lan d U B S Sw A G tze r	2 0 3 7 0 0	% 1, 9 9
S I X S I S A G	2 0 2 8 4 1	1, 9 8 %
V E R D I P A P I R F O N D E T N O R D E A K A P I T A L	1 6 9 2 8 4	1, 6 5 %
S O O G O T R E B R A N D N R E I V E R D I P A P I R F N D	6 2 9 2 9 1	9 % 1, 5
T E L E N O R P E N S J O N S K A S S E	1 5 4 1 4 1	1, 5 0 %
k a d S S Ba Tr Co ta te tre t t e n n us mp	1 3 6 0 0 6	1, 3 3 %
S O A N D E R V L L E	6 1 1 1 5 1	3 % 1, 1
D Y V I I N V E S T A S	1 0 0 0 0 0	0, 9 8 %
V E R D I P A P I R F O N D E T N O R D E A N O R G E P L U S	8 3 2 4 3	0, 8 1 %
Å N I L S- H K A N A I G R D	1 2 7 5 7	0, 3 % 7
E M P L O Y E E S R E T I R S Y S T E M O F T E X A S	7 2 4 0 0	% 0, 7 1
S T O R E B R A N D V E K S T V E R D I P A P I R F O N D	7 1 9 4 0	0, 7 0 %
f s Nu be ha he l d by he 2 0 lar ha ho l de t t s m r o res g es re rs	6 5 3 0 6 0 1	6 3, 7 1 %