Quarterly Report • Aug 23, 2018
Quarterly Report
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| Amounts in MNOK (except EPS, shares, | |||||
|---|---|---|---|---|---|
| percentage and employees) | Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | FY 2017 |
| FINANCIAL | |||||
| Net operating revenues | 887.6 | 738.9 | 1 746.7 | 1 538.6 | 2 977.6 |
| Growth (%) | 20.1% | 3.9% | 13.5% | 12.7% | 14.3% |
| EBITDA | 61.3 | 27.3 | 109.7 | 132.8 | 164.7 |
| EBITDA margin (%) | 6.9% | 3.7% | 6.3% | 8.6% | 5.5% |
| EBIT | 48.9 | 15.8 | 85.0 | 110.2 | 118.0 |
| EBIT margin (%) | 5.5% | 2.1% | 4.9% | 7.2% | 4.0% |
| Basic earnings per share (NOK) | 1.37 | 0.42 | 2.31 | 3.16 | 3.01 |
| Average number of shares | 26 969 973 | 26 242 784 | 26 970 183 | 26 241 964 | 26 407 850 |
| Net interest bearing debt 1) | 251.9 | 89.0 | 251.9 | 89.0 | 134.5 |
| Cash and cash equivalents | 132.2 | 157.8 | 132.2 | 157.8 | 154.3 |
| OPERATIONAL | |||||
| Order intake | 1 130.9 | 866.9 | 2 232.1 | 1 940.6 | 3 762.5 |
| Order backlog | 2 302.0 | 1 995.0 | 2 302.0 | 1 995.0 | 2 147.7 |
| Billing ratio (%) | 71.8% | 69.5% | 71.2% | 68.9% | 68.4% |
| Employees | 2 855 | 2 511 | 2 855 | 2 511 | 2 851 |
1) Refer to page 23 for definitions of alternative performance measures.
Multiconsult had a second quarter EBIT of NOK 48.9 million, positively impacted by a calendar effect of five more working days in Norway compared to second quarter 2017. Net operating revenues grew by 20.1% to NOK 887.6 million in the quarter and by 13.5% to NOK 1 746.7 million year to date, mainly driven by acquisitions. Year to date EBIT was NOK 85.0 million reflecting a 4.9% margin. The profitability improvement programme remains the number one priority and results in both Greater Oslo Area and Regions Norway are gradually improving.
(Figures in brackets = same period prior year or relevant balance sheet date 2018).
Net operating revenues increased by 20.1% to NOK 887.6 million (NOK 738.9 million) compared to the same quarter last year. The increase in net operating revenues reflects higher production due to acquisition of the Hjellnes group. A calendar effect of five more working days in Norway, of approximately NOK 67 million, impacted net operating revenues positively. However, employees in Norway used more vacation days as well as compensatory time off in May and June compared to same period last year, which reduced net operating income. The billing ratio increased to 71.8% (69.5%). Net project write-downs of NOK 12.7 million impacted net operating revenues negatively, however still reflecting a relatively normal level. Group billing rates increased marginally compared to the same period in 2017.
Operating expenses increased by 16.1% to NOK 826.3 million (NOK 711.6 million). The increase is mainly attributable to higher employee benefit expenses caused by increased headcount from acquisitions, net recruitment, and ordinary salary adjustment.
EBITDA was NOK 61.3 million (NOK 27.3 million), an increase of 124.6% compared to the same period last year, reflecting higher net operating revenues mainly due to the significant calendar effect and increased production due to acquisitions.
EBIT amounted to NOK 48.9 million (NOK 15.8 million) reflecting a 5.5% EBIT margin.
Results from associated companies and joint ventures amounted to NOK 0.1 million (NOK 0.1 million).
Net financial items were an expense of NOK 0.9 million (NOK 1.5 million).
Group tax rate was 23.0% (23.7%).
Reported profit for the period was NOK 37 million (NOK 11 million). Earnings per share for the quarter were NOK 1.37 (NOK 0.42).
Net operating revenues increased by 13.5% to NOK 1 746.7 million (NOK 1 538.6 million) compared to the same period last year. The increase in net operating revenues was mainly driven by higher production due to the acquisitions of the Hjellnes group and Iterio AB. Growth in revenues was further supported by a higher billing ratio at 71.2% (68.9%). Net project write-downs of NOK 25.3 million impacted net operating revenues negatively, however still reflecting a relatively normal level compared to net writeups in the previous year. There was a calendar effect of one less working day, partly offsetting growth in net operating revenues by approximately NOK 13 million compared to the same period in 2017. In addition, employees used more vacation days as well as compensatory time off compared
to last year. Average billing rate for the group is at a slightly higher level than previous year.
EBITDA was NOK 109.7 million (NOK 132.8 million), a decrease of 17.4% compared to the same period previous year. Higher net operating revenues were more than offset by the increase in operating expenses in the period. Higher employee benefit expenses reflect increased headcount related to acquisitions and ordinary salary adjustment. Other operating expenses increased approximately in line with increased headcount.
EBIT amounted to NOK 85.0 million (NOK 110.2 million), a decrease of 22.9%. EBIT margin was 4.9% year to date 2018.
Group tax rate was 24.0% (23.6%).
Reported profit for the period was NOK 62.3 million (NOK 83.0 million). Earnings per share were NOK 2.31 (NOK 3.16).
Net cash flow from operating activities was NOK 54.4 million (NOK 14.0 million). The increase was related to higher profit before tax, mainly due to the calender effect in the quarter.
Net cash flow used in investment activities was NOK 12.8 million this quarter (NOK 17.1 million), related to ordinary asset replacement.
Net cash flow from financing activities amounted to negative NOK 63.9 million (positive NOK 10.8 million), mainly due to dividends paid in the quarter and a lower level of interest bearing debt. In the same quarter last year the increase in interest bearing debt more than offset the dividend payment.
Net cash flow from operating activities was negative NOK 43.5 million (NOK 52.9 million). The decrease was mainly related to the lower net profit, partially offset by lower working capital and lower income tax payment.
Net cash flow used in investment activities was NOK 27.4 million (NOK 80.4 million), mainly related to ordinary asset replacement. In the same quarter last year the investments also include the acquisition of Iterio AB.
Net cash flow from financing activities was NOK 54.7 million (NOK 108.1 million), reflecting increased interest bearing debt less dividend payment.
As of 30 June 2018, total assets amounted to NOK 1 949.0 million (NOK 1 957.9 million at 31 March 2018), and total equity amounted to NOK 590.9 million (NOK 595.7 million at 31 March 2018).
The group held cash and cash equivalents of NOK 132.2 million as of 30 June 2018 (NOK 151.7 million at 31 March 2018). Net interest bearing debt amounted to NOK 251.9 million (NOK 255.0 million at 31 March 2018), due to improved cash flow from operating activities, which resulted in a lower draw-down on the overdraft facility.
The order backlog at the end of the second quarter 2018 was NOK 2 302.0 million (NOK 1 995.0 million), an increase of 15.4% year on year.
Order intake during the second quarter 2018 increased by 30.5% to NOK 1 130.9 million (NOK 866.9 million) compared to the same quarter last year. There was solid order intake within Buildings & Properties and Transportation in the quarter. Many small and mid-size contracts have been awarded in the period and the project tender pipeline remains strong, especially within Transportation.
Among important new contracts this quarter were GET FiT programme for KfW in Zambia and new timber terminal for Bane NOR at Hauerseter in Norway. Important add-ons to existing contracts this quarter were the New Airbase Ørland and submarine maintenance facilities at Haakonsvern for Forsvarsbygg, as well as InterCity Fredrikstad-Sarpsborg and Bus lane Diagonalen – Hans and Grete trail for Statens vegvesen.
Call-offs on frame agreements are only included in the order backlog when signed.
In the light of the weak results in 2017, the group launched a comprehensive profitability programme with a target of improving the EBIT margin to a minimum of 6.0% for 2018. The programme focuses primarily on improving operations in Greater Oslo Area and Regions Norway with priority on improving sales, billing ratio and project execution. The programme also includes measures to achieve efficiency gains and general cost reductions.
Regions Norway and Greater Oslo Area continue to achieve improvements in the billing ratio. The more modest improvement in earnings in Greater Oslo reflects the consequences of the comprehensive reorganisation effective from March 2018. Order intake in Greater Oslo Area increased significantly in the second quarter. Net write-downs reflect a normal level of 1-2% of net operating revenues, however the programme continues to focus on optimising project execution. Important changes have been made, especially in respect of costs to make operations leaner going forward.
Multiconsult's segments are presented as three geographical segments, Greater Oslo Area, Regions Norway, International, and a segment for LINK arkitektur.
The segment offers services in seven business areas and comprises the central area of eastern Norway, with regional offices in Oslo, Fredrikstad and Drammen.
| Amounts in MNOK | Q2 2018 |
Q2 2017 |
H1 2018 |
H1 2017 |
|---|---|---|---|---|
| Net op. revenues | 409.2 | 308.4 | 802.2 | 659.1 |
| EBITDA | 29.9 | 11.0 | 45.3 | 66.8 |
| EBITDA% | 7.3% | 3.6% | 5.6% | 10.1% |
| EBIT | 26.3 | 7.4 | 37.9 | 59.5 |
| EBIT% | 6.4% | 2.4% | 4.7% | 9.0% |
| Order intake | 624.5 | 321.5 | 1 056.0 | 797.6 |
| Order Backlog | 949.4 | 781.0 | 949.4 | 781.0 |
| Billing ratio | 71.4% | 68.3% | 70.5% | 68.1% |
| Employees | 1 164 | 903 | 1 164 | 903 |
Net operating revenues in the quarter increased by 32.7% to NOK 409.2 million (NOK 308.4 million) compared to the same quarter last year. The increase was mainly driven by the acquisition of the Hjellnes group. The increase in net operating revenues was further supported by the calendar effect of five more working days, which represents approximately NOK 28 million in the quarter. A higher billing ratio at 71.4% (68.3%) impacted the growth in net operating revenues positively. Net project write-downs impacted net operating revenues negatively with NOK 7.2 million in the period. With the exception of Renewable Energy all business areas experienced increased operating revenues compared to the same quarter last year. Billing rates increased modestly in the quarter.
EBITDA amounted to NOK 29.9 million (NOK 11.0 million), an increase of 171.2% from last year. Higher net operating revenues were partly offset by increased operating expenses, mainly as a result of the acquisition of the Hjellnes group and ordinary salary adjustment.
EBIT amounted to NOK 26.3 million (NOK 7.4 million) reflecting a 6.4% EBIT margin.
Order intake in the second quarter was NOK 624.5 million (NOK 321.5 million), an increase of 94.2% compared to the same quarter last year. There was strong growth in Buildings & Properties and Transportation.
Order backlog for the segment at the end of the second quarter 2018 amounted to NOK 949.4 million (NOK 781.0 million), up 21.6% year on year.
Net operating revenues increased by 21.7% to NOK 802.2 million (NOK 659.1 million), mainly due to acquisition of the Hjellnes group. A higher billing ratio at 70.5% (68.1%) resulted in increased net operating revenues. There were net writedowns of NOK 16.5 million in the period. A negative calendar effect of one less working day partly offset the growth in net operating revenues with approximately NOK 6 million in the period. Billing rates increased modestly compared to last year.
EBITDA amounted to NOK 45.3 million (NOK 66.8 million), a decrease of 32.2%. Increased revenue was more than offset by higher employee benefit expenses explained by acquisitions and ordinary salary adjustment. Other operating expenses increased in the period in line with increased headcount.
EBIT amounted to NOK 37.9 million (NOK 59.5 million) reflecting a 4.7% EBIT margin.
Order intake year to date amounted to NOK 1 056.0 million (NOK 797.6), an increase of 32.4% from last year. The order
backlog of the Hjellnes group of NOK 153.4 million was reported as order intake and included in the order backlog in the third quarter 2017.
The segment offers services in seven business areas and comprises regional offices in Stavanger, Bergen, Trondheim and Tromsø.
| Amounts in MNOK | Q2 2018 |
Q2 2017 |
H1 2018 |
H1 2017 |
|---|---|---|---|---|
| Net op. revenues | 295.2 | 268.2 | 574.5 | 550.0 |
| EBITDA | 31.6 | 13.0 | 51.1 | 41.2 |
| EBITDA% | 10.7% | 4.9% | 8.9% | 7.5% |
| EBIT | 25.9 | 7.0 | 39.6 | 29.4 |
| EBIT% | 8.8% | 2.6% | 6.9% | 5.3% |
| Order intake | 277.5 | 331.0 | 692.9 | 554.9 |
| Order Backlog | 487.7 | 498.0 | 487.7 | 498.0 |
| Billing ratio | 72.8% | 69.4% | 71.4% | 67.9% |
| Employees | 831 | 827 | 831 | 827 |
Net operating revenues amounted to NOK 295.2 million (NOK 268.2 million), an increase of 10.1% compared to the same quarter last year. A calendar effect of five more working days impacted the growth in net operating revenues positively with approximately NOK 24 million in the quarter. A higher billing ratio at 72.8% (69.4%) further increased revenues. All business areas experienced an increase in operating revenues compared to the same quarter last year. Net write-downs in the period of NOK 5.8 million partly offset growth in revenues There was a modest improvement in billing rates in the quarter.
EBITDA increased by 142.7% to NOK 31.6 million (NOK 13.0 million). Higher net operating revenues were partly offset by increased employee benefit expenses, mainly as a result of ordinary salary adjustment.
EBIT amounted to NOK 25.9 million (NOK 7.0 million) reflecting a 8.8% EBIT margin.
Order intake in the second quarter was NOK 277.5 million (NOK 331.1 million), representing a decrease of 16.2% compared to the same quarter last year. There was a decrease in Buildings & Properties, Transportation and Water & Environment, while Industry, Renewable Energy and Cities & Society increased.
Order backlog for the segment at the end of the second quarter 2018 amounted to NOK 487.7 million (NOK 498.0 million), down 2.1% year on year.
Net operating revenues increased by 4.5% to NOK 574.5 million (NOK 550.0 million). An improved billing ratio to 71.4% (67.9%) impacted growth in net operating revenues positively. Billing rates improved compared to last year. A calendar effect of one less working day partly offset growth in revenues, by approximately NOK 5 million. Net write-downs in the period of NOK 11.6 million further offset growth in revenues.
EBITDA amounted to NOK 51.1 million (NOK 41.2 million), an increase of 24.1%. Higher revenues were partly offset by increased employee benefit expenses due to ordinary salary adjustments.
EBIT amounted to NOK 39.6 million (NOK 29.4 million) reflecting a 6.9% EBIT margin.
Order intake amounted to NOK 692.9 million (NOK 554.9 million), an increase of 24.9% from last year.
The international segment comprises the subsidiaries Multiconsult UK, Multiconsult Asia, Multiconsult Polska and Iterio AB.
| Amounts in MNOK | Q2 2018 |
Q2 2017 |
H1 2018 |
H1 2017 |
|---|---|---|---|---|
| Net op. revenues | 55.0 | 46.3 | 106.1 | 92.8 |
| EBITDA | 6.0 | 3.4 | 11.9 | 17.0 |
| EBITDA% | 10.9% | 7.3% | 11.2% | 18.3% |
| EBIT | 5.4 | 2.8 | 10.8 | 15.9 |
| EBIT% | 9.8% | 6.0% | 10.2% | 17.1% |
| Order intake | 52.4 | 62.5 | 100.3 | 226.0 |
| Order Backlog | 324.9 | 285.1 | 324.9 | 285.1 |
| Billing ratio | 73.6% | 71.9% | 74.6% | 72.6% |
| Employees | 245 | 197 | 245 | 197 |
Net operating revenues amounted to NOK 55.0 million (NOK 46.3 million), an increase of 19.0% compared to the same quarter last year. The increase in net operating revenues is mainly explained by increased billing ratio combined with increased capacity in Multiconsult Polska and Multiconsult UK.
EBITDA was NOK 6.0 million (NOK 3.4 million), an increase of 77.3% in the quarter mainly due to increased earnings in Multiconsult UK.
EBIT amounted to NOK 5.4 million (NOK 2.8 million) reflecting a 9.8% EBIT margin.
Order intake in the second quarter was NOK 52.4 million (NOK 62.5 million), a decrease of 16.2% compared to the same quarter last year. The main contribution came in Transportation projects for Multiconsult Polska.
Order backlog at the end of the second quarter amounted to NOK 324.9 million (NOK 285.1 million), up 14.0% year on year.
Net operating revenues amounted to NOK 106.1 million (NOK 92.8 million), an increase of 14.4% compared to the same period last year. The growth in net operating revenues was mainly attributed to new contribution from Iterio AB as well as higher contribution from Multiconsult Polska and Multiconsult UK.
EBITDA was NOK 11.9 million (NOK 17.0 million) for the period. Strong operations in Multiconsult UK was more than offset by low project activity in Multiconsult Asia, that had significant project activity in the same period last year.
EBIT amounted to NOK 10.8 million (NOK 15.9 million) reflecting a 10.2% EBIT margin.
Order intake amounted to NOK 100.3 million (NOK 226.0 million), a decrease of 55.6% from previous year, reflecting the acquisition of the backlog of NOK 85.4 million from Iterio AB in the first quarter 2017.
This segment comprises LINK arkitektur with its 15 offices throughout Scandinavia.
| Amounts in MNOK | Q2 2018 |
Q2 2017 |
H1 2018 |
H1 2017 |
|---|---|---|---|---|
| Net op. revenues | 132.7 | 118.3 | 274.4 | 240.1 |
| EBITDA | 5.4 | 0.7 | 20.0 | 10.1 |
| EBITDA% | 4.0% | 0.6% | 7.3% | 4.2% |
| EBIT | 3.4 | (0.7) | 16.3 | 7.6 |
| EBIT% | 2.6% | (0.6%) | 5.9% | 3.2% |
| Order intake | 176.6 | 149.4 | 377.8 | 358.1 |
| Order Backlog | 540.0 | 431.0 | 540.0 | 431.0 |
| Billing ratio | 73.8% | 71.9% | 74.9% | 71.8% |
| Employees | 485 | 454 | 485 | 454 |
Net operating revenues amounted to NOK 132.7 million (NOK 118.3 million), an increase of 12.1% compared to the same quarter last year. Growth was mainly driven by a higher billing ratio of 73.8% (71.9%) as well as higher production from net recruitment. A calendar effect of approximately NOK 11 million supported growth in revenues. Average billing rates were at a slightly lower level compared to the same quarter last year.
EBITDA amounted to NOK 5.4 million (NOK 0.7 million) in the second quarter, mainly due to higher net operating revenues.
EBIT amounted to NOK 3.4 million (negative NOK 0.7 million) reflecting a 2.6% EBIT margin.
Order intake in the second quarter was NOK 176.6 million (NOK 149.4 million), an increase of 18.2% compared to the same quarter last year. The majority of the order intake in the quarter came from add-ons to existing contracts in addition to several smaller, but important new contracts.
Order backlog for the segment at the end of the second quarter 2018 amounted to NOK 540.0 million (NOK 431.0 million), an increase of 25.3% compared to the same quarter last year.
Net operating revenues amounted to NOK 274.4 million (NOK 240.1 million), an increase of 14.3% compared to the same period last year. Higher production due to net recruitment as well as an improvement in the billing ratio to 74.9% (71.8%) contributed positively to the growth compared to last year.
EBITDA amounted to NOK 20.0 million (NOK 10.1 million) in the period, an increase of 98.0%. Improved net operating revenues were partly offset by higher employee benefit expenses as a result of acquisitions and net recruitment.
EBIT amounted to NOK 16.3 million (NOK 7.6 million) reflecting a 5.9% EBIT margin.
Order intake was NOK 377.8 million (NOK 358.1 million), an increase of 5.4%.
At 30 June 2018 the group had 2 855 employees. The employee turnover ratio for the group was 6.4% for the period June 2017 to June 2018.
On 9 July, the company announced that Nye Veier has chosen Acciona Construccion S.A, Leonard Nilsen & Sønner, Acciona Mantenimiento de infraestructuras S.A. and Multiconsult for the EPC contract of approximately NOK 4 billion, developing and constructing the E6 between Ranheim and Værnes. The project is located in the municipalities Trondheim, Malvik and Stjørdal in Norway, and Multiconsult will deliver all engineering services. The contract value for Multiconsult is significant,
The recorded sick leave ratio for Multiconsult Norge AS was 4.0% in the second quarter.
A new organisational structure for Greater Oslo Area was implemented on 1 March 2018. It has been a comprehensive organisational development process to re-organise and integrate more than 1 000 employees in business units from Multiconsult Norge AS, Hjellnes Consult AS, Johs Holt AS, and Analyse & Strategi AS.
but still under negotiation. Following the clarification phase a contract will be signed at the end of September 2018. After approximately one year of planning and optimisation processes the construction phase is planned to begin by mid-2019 and to be finalised in 2024. Multiconsult is the only engineering consultant and will deliver new zoning plans as well as detailed design throughout the construction phase.
The overall market outlook continues to show positive development across all business areas.
Buildings & Properties is expected to maintain stable growth, although there is some uncertainty in the residential market in certain regions. The outlook for the architecture market is fairly positive in all segments especially within healthcare buildings in Norway. Public sector investment is driving a strong outlook for Transportation within road and rail, and several large projects are expected to be assigned in the coming year. The Renewable Energy market in Norway is expected to remain stable, with growth anticipated in the transmission sector. International Renewable Energy markets show a very strong pipeline, continuing to provide new business opportunities for Multiconsult. Investment in the Industry sector in Norway is expected to increase mainly in refineries, chemical production and aquaculture. Demand for our services in the Oil & Gas market is expected to slowly improve going forward. Within Water & Environment there is stable demand for water and waste infrastructure projects as well as for soil contamination inspections.
The overall competitive landscape has moved towards more Engineering, Procurement and Construction (EPC) contracts. The trend towards more frame agreements is expected to continue especially within large and complex public projects. Continued strong competition is maintaining significant price pressure on large projects in Norway. Market rates have shown some improvement, however the cost level for the Norwegian workforce is creating challenges to profitability for the industry in general. This trend must be broken if long-term profitability ambitions are to be achieved.
Multiconsult's strong market position, flexible business model and wide service offering provides a sound base for profitable growth, both domestic and international. Resources from Multiconsult Polska will gradually be phased into ongoing projects to strengthen competitiveness. The top line synergies between Multiconsult and LINK arkitektur are expected to continue to further strengthen the group's value proposition to customers. The integration of the Hjellnes group into the Greater Oslo Area is expected to provide top line synergies in the health care and transportation sectors.
The order backlog is stable and provides a strong foundation for profitable growth, supported by valuable frame agreements generated from a broad and robust customer base.
The risk of disagreements and legal disputes related to the possible cost of delays and project errors is always present in the consultancy business. Multiconsult has good insurance policies and routines for following up such cases. Further details regarding the insurance coverage are provided in note 19 to the consolidated financial statements for 2017. The largest claim at 30 June 2018 was related to the Prinsensgate 26 project with Stortinget. The legal process is progressing as expected.
Multiconsult is exposed to credit risk, primarily related to transactions with clients and from bank deposits. The company's credit losses on accounts receivable have historically been modest. New customers are subject to credit assessment and approval before credit is extended to them. Responsibility for credit management in the parent company is centralised, and routines are integrated in the group's quality assurance system. The company has established routines for assessing the creditworthiness of the customer, and the possible need for bank guarantees or other risk mitigation measures.
The group is exposed to currency risk through ongoing projects abroad with fees generated in foreign currencies. Hedging contracts have been entered into for certain projects to reduce this risk. Currency risk is regarded as modest.
In the third quarter 2017, Multiconsult ASA increased its debt and restructured its credit facilities in connection with the acquisition of the Hjellnes group. Multiconsult ASA entered into a loan agreement with Nordea for NOK 215.0 million, which was used to settle the cash payment of NOK 119.0 million to the selling shareholders in the Hjellnes group as well as to pay down the previously drawn Multiconsult ASA revolving credit facility of NOK 95 million. Interest swaps have been entered into to ensure that approximately 50% of interest cost is at fixed rates.
Multiconsult Norge AS has an overdraft facility of NOK 320.0 million with the group's main bank.
We confirm to the best of our knowledge that the condensed set of financial statements for the period 1 January to 30 June 2018 have been prepared in accordance with IAS 34 - Interim Financial Reporting, and gives a true and fair view of the Multiconsult group's assets, liabilities, financial position and result for the period. We also confirm to the best of our
knowledge that the financial review includes a fair review of important events that have occurred during the financial year and their impact on the financial statements, any major related parties transactions, and a description of the principal risks and uncertainties.
Oslo, 22 August 2018 The Board of Directors and CEO Multiconsult ASA
Nigel K.Wilson Kjetil Ebbesberg Vibeke Strømme Rikard Appelgren Line Haugen
Chairman Board member Board member Board member Board member
Runar Tyssebotn Liv-Kristine Rud Elisabeth W. Lokshall Christian Nørgaard Madsen
Board member Board member Board member CEO
Net operating revenues: Operating revenues less sub consultants and disbursements.
EBIT: Earnings before net financial items, results from associates and joint ventures and income tax.
EBIT margin (%): EBIT as a percentage of net operating revenues.
EBITDA: EBIT before depreciation, amortisation and impairment.
EBITDA margin (%): EBITDA as a percentage of net operating revenues.
Operating expenses: Employee benefit expenses plus other operating expenses.
Net interest bearing debt: Non-current and current interest bearing liabilities deducted cash and cash equivalents.
Order intake: Expected operating revenues on new contracts and confirmed changes to existing contracts. Only group external contracts are included.
Order Backlog: Expected remaining operating revenues on new and existing contracts. Only group external contracts are included. Call-offs on frame agreements are included in the order backlog when signed.
Billing ratio (%): Hours recorded on chargeable projects as a percentage of total hours worked (including administrative staff) and employer-paid absence. Billing ratio per segment includes allocated administrative staff.
Employees: Number of employees comprise all staff on payroll including staff on temporarily leave (paid and unpaid), excluding temporary personnel.
This report includes forward-looking statements, which are based on our current expectations and projections about future events. All statements other than statements of historical facts included in this notice, including statements regarding our future financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations, including our plans for future costs savings and synergies may be deemed to be forward-looking statements. Words such as "believe," "expect," "anticipate," "may," "assume," "plan," "intend," "will," "should," "estimate," "risk"
and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. You should not place undue reliance on these forward-looking statements. In addition, any forwardlooking statements are made only as of the date of this notice, and we do not intend and do not assume any obligation to update any statements set forth in this report.
Unaudited for the period ended 30 June 2018
| Amounts in TNOK, except EPS | Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | FY 2017 |
|---|---|---|---|---|---|
| Operating revenues | 1 028 033 | 840 500 | 2 050 012 | 1 733 123 | 3 375 399 |
| Expenses for sub consultants and disbursements | 140 459 | 101 601 | 303 349 | 194 489 | 397 758 |
| Net operating revenues | 887 573 | 738 898 | 1 746 663 | 1 538 635 | 2 977 642 |
| Employee benefit expenses 1) | 660 507 | 580 909 | 1 323 933 | 1 139 860 | 2 265 379 |
| Other operating expenses 1) | 165 791 | 130 708 | 313 007 | 265 976 | 547 519 |
| Operating expenses excl. depreciation and amortisation | 826 298 | 711 618 | 1 636 940 | 1 405 836 | 2 812 898 |
| Operating profit before depreciation and amortisation (EBITDA) | 61 275 | 27 281 | 109 723 | 132 798 | 164 744 |
| Depreciation and amortisation | 12 381 | 11 520 | 24 719 | 22 601 | 46 791 |
| Operating profit (EBIT) | 48 895 | 15 760 | 85 004 | 110 197 | 117 953 |
| Results from associated companies and joint ventures | 148 | 110 | 300 | 599 | 1 157 |
| Financial income | 2 858 | 806 | 3 780 | 1 920 | 2 956 |
| Financial expenses | 3 789 | 2 303 | 7 096 | 4 078 | 14 375 |
| Net financial items | (932) | (1 497) | (3 316) | (2 158) | (11 419) |
| Profit before tax | 48 111 | 14 373 | 81 988 | 108 639 | 107 691 |
| Income tax expense (Income) | 11 075 | 3 402 | 19 677 | 25 603 | 28 157 |
| Profit for the period | 37 036 | 10 972 | 62 310 | 83 035 | 79 534 |
| Attributable to: | |||||
| Owners of Multiconsult ASA | 37 036 | 10 972 | 62 310 | 83 035 | 79 534 |
| Earnings per share | |||||
| Basic and diluted (NOK) | 1.37 | 0.42 | 2.31 | 3.16 | 3.01 |
1) Restated 2017 figures, see note 2.
| Amounts in TNOK | Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | FY 2017 |
|---|---|---|---|---|---|
| Profit for the period | 37 036 | 10 972 | 62 310 | 83 035 | 79 534 |
| Other comprehensive income | |||||
| Remeasurment of defined benefit obligations | - | - | - | - | (1 452) |
| Tax | - | - | - | - | 334 |
| Total items that will not be reclassified to profit or loss | - | - | - | - | (1 118) |
| Currency translation differences | (1 275) | 1 614 | (12 884) | 4 665 | 13 802 |
| Total items that may be reclassified subsequently to profit or loss | (1 275) | 1 614 | (12 884) | 4 665 | 13 802 |
| Total other comprehensive income for the period | (1 275) | 1 614 | (12 884) | 4 665 | 12 684 |
| Total comprehensive income for the period | 35 761 | 12 586 | 49 426 | 87 700 | 92 218 |
| Attributable to: | |||||
| Owners of Multiconsult ASA | 35 761 | 12 586 | 49 426 | 87 700 | 92 218 |
| Amounts in TNOK | At 30 June 2018 | At 31 March 2018 | At 31 December 2017 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Deferred tax assets | 21 356 | 23 211 | 25 610 |
| Intangible assets | 26 451 | 23 118 | 19 704 |
| Goodwill | 445 180 | 446 402 | 449 942 |
| Property, plant and equipment | 95 881 | 98 773 | 99 947 |
| Associated companies and joint ventures | 11 108 | 10 906 | 10 809 |
| Non-current receivables and shares | 7 124 | 7 194 | 6 995 |
| Assets for reimbursement of provisions | 22 820 | 21 000 | 22 000 |
| Total non-current assets | 629 919 | 630 604 | 635 007 |
| Current assets | |||
| Trade receivables | 604 031 | 600 655 | 588 377 |
| Work in progress | 516 743 | 474 798 | 368 447 |
| Other receivables and prepaid costs | 66 066 | 100 154 | 65 012 |
| Cash and cash equivalents | 132 227 | 151 721 | 154 291 |
| Total current assets | 1 319 066 | 1 327 328 | 1 176 126 |
| Total assets | 1 948 986 | 1 957 931 | 1 811 133 |
| EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Total paid in equity | 91 242 | 91 242 | 91 242 |
| Other equity | 499 683 | 504 495 | 490 830 |
| Total shareholders' equity | 590 925 | 595 737 | 582 072 |
| Non-current liabilities | |||
| Retirement benefit obligations | 5 997 | 7 048 | 6 667 |
| Deferred tax | 12 551 | 13 734 | 13 835 |
| Provisions | 32 572 | 32 763 | 29 937 |
| Non-current interest bearing liabilities | 196 905 | 196 677 | 195 203 |
| Total non-current liabilities | 248 026 | 250 222 | 245 642 |
| Current liabilities | |||
| Trade payables | 150 003 | 129 700 | 140 186 |
| Prepayments 1) | 93 892 | 90 383 | 97 871 |
| Current tax liabilities | 24 364 | 16 306 | 14 610 |
| VAT and other public taxes and duties payables | 269 349 | 289 855 | 296 266 |
| Current interest bearing liabilities | 187 179 | 210 084 | 93 573 |
| Other current liabilities 1) | 385 249 | 375 644 | 340 913 |
| Total current liabilities | 1 110 035 | 1 111 972 | 983 420 |
| Total liabilities | 1 358 061 | 1 362 194 | 1 229 062 |
| Total equity and liabilities | 1 948 986 | 1 957 931 | 1 811 133 |
1) Restated 2017 figures, see note 2 section IFRS 15 Revenue from contracts with customers.
| Amounts in TNOK | Share capital |
Own shares |
Share premium |
Total paid-in capital |
Retained earnings |
Pension | Translation differences |
Total equity |
|---|---|---|---|---|---|---|---|---|
| 31 December 2016 | 13 125 | (1) | 13 320 | 26 443 | 683 309 | (201 224) | (1 008) | 507 520 |
| Dividend | - | - | - | - | (78 715) | - | - | (78 715) |
| Treasury shares | - | (3) | - | (3) | (551) | - | - | (554) |
| Employee share purchase programme | - | - | - | - | - | - | - | - |
| Comprehensive income | - | - | - | - | 83 035 | - | 4 665 | 87 700 |
| 30 June 2017 | 13 125 | (4) | 13 320 | 26 440 | 687 079 | (201 224) | 3 658 | 515 953 |
| 31 December 2016 | 13 125 | (1) | 13 320 | 26 443 | 683 309 | (201 224) | (1 008) | 507 520 |
| Dividend | - | - | - | - | (78 715) | - | - | (78 715) |
| Share Issue | 361 | - | 64 438 | 64 799 | - | - | - | 64 799 |
| Treasury shares | - | 1 | - | 1 | 204 | - | - | 205 |
| Employee share purchase programme | - | - | - | - | (3 955) | - | - | (3 955) |
| Comprehensive income | - | - | - | - | 79 534 | (1 118) | 13 802 | 92 218 |
| 31 December 2017 | 13 486 | - | 77 758 | 91 242 | 680 378 | (202 343) | 12 794 | 582 072 |
| Dividend | - | - | - | - | (40 456) | (40 456) | ||
| Share Issue | - | - | - | - | - | - | - | - |
| Treasury shares | - | - | - | - | 4 | - | - | 4 |
| Employee share purchase programme | - | - | - | - | (121) | - | - | (121) |
| Comprehensive income | - | - | - | - | 62 310 | - | (12 884) | 49 426 |
| 30 June 2018 | 13 486 | - | 77 758 | 91 242 | 702 116 | (202 344) | (90) | 590 925 |
| Amounts in TNOK | Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | FY 2017 |
|---|---|---|---|---|---|
| Cash flows from operating activities | |||||
| Profit before tax | 48 111 | 14 373 | 81 988 | 108 638 | 107 691 |
| Income taxes paid | (3 016) | (7 294) | (9 923) | (33 574) | (37 623) |
| Depreciation and amortisation | 12 381 | 11 520 | 24 719 | 22 601 | 46 791 |
| Results from associated companies and joint ventures | (148) | (12) | (300) | (599) | (1 157) |
| Other non-cash profit and loss items | - | - | - | - | 2 010 |
| Sub total operating activities | 57 327 | 18 586 | 96 483 | 97 066 | 117 712 |
| Changes in working capital | (2 917) | (4 620) | (139 962) | (149 933) | (51 756) |
| Net cash flow from operating activities | 54 410 | 13 966 | (43 478) | (52 868) | 65 956 |
| Cash flows from investment activities | |||||
| Net purchase and sale of fixed assets and financial non-current assets | (12 821) | (10 706) | (27 399) | (23 555) | (46 789) |
| Proceeds/payments related to equity accounted investments | - | - | - | - | 339 |
| Net cash effect of business combinations | - | (6 425) | - | (56 878) | (175 257) |
| Net cash flow used in investment activities | (12 821) | (17 131) | (27 399) | (80 433) | (221 707) |
| Cash flows from financing activities | |||||
| Change in interest-bearing liabilities | (22 677) | 90 096 | 95 307 | 187 334 | 229 306 |
| Paid dividends | (40 456) | (78 715) | (40 456) | (78 715) | (78 715) |
| Sale treasury shares | - | - | 585 | - | 11 119 |
| Purchase treasury shares | (737) | (554) | (737) | (554) | (35 030) |
| Net cash flow from financing activities | (63 870) | 10 827 | 54 700 | 108 065 | 126 680 |
| Foreign currency effects on cash and cash equivalents | 2 788 | 3 267 | (5 886) | 7 056 | 7 372 |
| Net increase/decrease in cash and cash equivalents | (19 494) | 10 929 | (22 064) | (18 180) | (21 699) |
| Cash and cash equivalents at the beginning of the period | 151 721 | 146 881 | 154 291 | 175 990 | 175 990 |
| Cash and cash equivalents at the end of the period | 132 227 | 157 810 | 132 227 | 157 810 | 154 291 |
Multiconsult ASA (the company) is a Norwegian public limited liability company listed on Oslo Børs. The company and its subsidiaries (together the Multiconsult group/the group) are
The financial statements are presented in NOK, rounded to the nearest thousand, unless otherwise stated. As a result of rounding adjustments, the figures in one or more rows or columns included in the financial statements and notes may not add up to the total of that row or column.
These interim condensed consolidated financial statements for the second quarter of 2018 have been prepared in accordance with IAS 34 as approved by the EU. They have not been audited. They do not include all of the information required for full annual financial statements of the group and should be read in conjunction with the consolidated financial statements for 2017. The accounting policies applied are consistent with those applied and described in the consolidated annual financial statements for 2017, which are available upon request from the company's registered office at Nedre Skøyen vei 2, 0276 Oslo and at www. multiconsult.no.
These interim condensed consolidated financial statements for the second quarter of 2018 were approved by the Board of Directors and the CEO on 22 August 2018.
The group prepares its consolidated annual financial statements in accordance with IFRS as adopted by the EU (International Financial Reporting Standards - IFRS). References to IFRS in these financial statements refer to IFRS as approved by the EU. The accounting policies adopted are consistent with those of the previous financial year.
At the time of approval for issue of these interim condensed consolidated financial statements, some new standards, amendments to standards and interpretations have been published, but are not yet effective and have not been applied in preparing these consolidated financial statements. Those that may be relevant for the group are described in note 2 to the annual consolidated financial statements for 2017.
IFRS 15 Revenue from contracts with customers IFRS 15 Revenue from contracts with customers is effective among the leading suppliers of consultancy and design services in Norway and the Nordic region. The group has subsidiaries outside the Nordic region in Poland, UK and Singapore.
for annual reporting periods beginning from 1 January 2018. Multiconsult has established that the vast majority of contracts in terms of transaction price are time-based, i.e. the company earns revenue per hour worked. There are some contracts which are time-based with a cap, or fixed price, but these are immateril compared to total revenue. Current revenue recognition is based on work performed, similar to "over-time" revenue recognition in IFRS 15. Multiconsult has evaluated that for some of its services, for example construction management and co-ordination, the customer simultaneously receives and consumes the benefits provided and therefore revenues is recognised over time. Other services are to a large extent tailored to customer requirements and have no alternative use for Multiconsult. The group's assessment is that implementation of IFRS 15 has no significant effect on revenue recognition for the group. This is primarily due to the fact that the contracts as a main rule establish right to payment for performance to date. The entity's performance does not create an asset with an alternative use to the entity, and in some contracts the customer simultaneously receives and consumes the benefits provided by its performance. Refer to note 2A to the consolidated annual financial statements for 2017 for further information about the company's assessements related to implementation of IFRS 15.
Work in progress (WIP) is related to worked performed but not billed at the reporting date. Project liabilities are related to prepayments from customer. Trade payable and Other current liabilities are restated for the comparative periods.
| Amounts in TNOK | FY 2017 |
|---|---|
| Trade payable | 165 534 |
| Restatement | 25 348 |
| Restated trade payable | 140 186 |
| Other current liabilities | 413 436 |
| Restatement | 72 523 |
| Restated other current liabilities | 340 913 |
| Total restated to prepayment | 97 871 |
In September 2017 the new ERP-system was implemented. In connection with the implementation, some classifications in the financial statements are changed. Employee benefit expenses and Other operating expenses are restated for the comparative periods.
| Amounts in TNOK | Q2 2017 | H1 2017 | FY 2017 |
|---|---|---|---|
| Employee benefit expenses | 589 629 | 1 157 914 | 2 319 810 |
| Restatement | 8 720 | 18 054 | 54 431 |
| Restated employee benefit expenses | 580 909 | 1 139 860 | 2 265 379 |
| Other operating expenses | 121 988 | 247 922 | 493 088 |
| Restatement | 8 720 | 18 054 | 54 431 |
| Restated other operating expenses | 130 708 | 265 976 | 547 519 |
The preparation of interim condensed consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these interim condensed consolidated financial
statements, significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the annual consolidated financial statements for 2017 (see especially note 2).
Refer to note 5 to the consolidated annual financial statements for 2017 for more information on the segments. The group has three geographical reporting segments as well as a segment for LINK arkitektur. Revenues and expenses are
reported in the segment with reference to where the employee is employed. The cost of administrative services, rent of premises, depreciation and so forth is allocated to the segments.
| Amounts in TNOK | Greater Oslo Area |
Regions Norway |
Inter national |
LINK arkitektur |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|
| External revenues | 480 295 | 318 097 | 67 068 | 163 922 | (1 349) | - | 1 028 033 |
| Internal revenues | 6 771 | - | 8 707 | 9 253 | 3 054 | (27 785) | - |
| Total operating revenues | 487 066 | 318 097 | 75 774 | 173 175 | 1 705 | (27 785) 1 028 033 | |
| Net operating revenues | 409 196 | 295 237 | 55 048 | 132 691 | (4 598) | - | 887 573 |
| Operating expenses | 379 327 | 263 669 | 49 061 | 127 324 | 6 917 | - | 826 298 |
| EBITDA | 29 869 | 31 568 | 5 987 | 5 367 | (11 515) | - | 61 275 |
| Depreciation, amortisation, impairment | 3 547 | 5 717 | 570 | 1 932 | 614 | - | 12 381 |
| EBIT | 26 322 | 25 851 | 5 417 | 3 435 | (12 129) | - | 48 895 |
| Associates and joint ventures | 237 | - | - | (89) | - | - | 148 |
| Receivables 1) | 533 485 | 338 850 | 106 335 | 184 171 | - | (30 665) 1 132 176 | |
| Number of employees | 1 164 | 831 | 245 | 485 | 130 | - | 2 855 |
1) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
| Amounts in TNOK | Greater Oslo Area |
Regions Norway |
Inter national |
LINK arkitektur |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|
| External revenues | 366 372 | 284 338 | 46 285 | 146 378 | (2 874) | - | 840 500 |
| Internal revenues | 4 743 | - | 11 422 | 4 470 | 970 | (21 605) | - |
| Total operating revenues | 371 115 | 284 338 | 57 707 | 150 848 | (1 903) | (21 605) | 840 500 |
| Net operating revenues | 308 444 | 268 174 | 46 251 | 118 347 | (2 318) | - | 738 899 |
| Operating expenses | 297 429 | 255 168 | 42 873 | 117 693 | (1 546) | - | 711 618 |
| EBITDA | 11 015 | 13 007 | 3 377 | 654 | (772) | - | 27 281 |
| Depreciation, amortisation, impairment | 3 638 | 5 972 | 598 | 1 346 | (34) | - | 11 520 |
| EBIT | 7 377 | 7 035 | 2 779 | (692) | (737) | - | 15 762 |
| Associates and joint ventures | 93 | - | 18 | - | - | - | 110 |
| Receivables 1) | 362 158 | 275 606 | 78 855 | 185 590 | 3 163 | (17 399) | 887 972 |
| Number of employees | 903 | 827 | 197 | 454 | 130 | - | 2 511 |
1) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
| Greater | Regions | Inter | LINK | Not | Elimi | |
|---|---|---|---|---|---|---|
| Amounts in TNOK | Oslo Area | Norway | national | arkitektur | allocated | nations Total |
| External revenues | 959 553 | 616 121 | 134 541 | 336 088 | 3 709 | - 2 050 012 |
| Internal revenues | 13 778 | - | 15 904 | 15 343 | 3 438 | (48 463) - |
| Total operating revenues | 973 331 | 616 121 | 150 445 | 351 430 | 7 147 | (48 463) 2 050 012 |
| Net operating revenues | 802 207 | 574 527 | 106 149 | 274 368 | (10 588) | - 1 746 663 |
| Operating expenses | 756 925 | 523 443 | 94 244 | 254 338 | 7 991 | - 1 636 940 |
| EBITDA | 45 282 | 51 084 | 11 905 | 20 031 | (18 579) | - 109 723 |
| Depreciation and amortisation | 7 377 | 11 442 | 1 120 | 3 774 | 1 006 | - 24 719 |
| EBIT | 37 906 | 39 642 | 10 785 | 16 257 | (19 585) | - 85 004 |
| Associates and joint ventures | 389 | - | - | (89) | - 300 |
|
| Receivables 1) | 533 485 | 338 850 | 106 335 | 184 171 | - | (30 665) 1 132 176 |
| Number of employees | 1 164 | 831 | 245 | 485 | 130 | 2 855 |
1) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
| Greater | Regions | Inter | LINK | Not | Elimi | ||
|---|---|---|---|---|---|---|---|
| Amounts in TNOK | Oslo Area | Norway | national | arkitektur | allocated | nations | Total |
| External revenues | 777 661 | 581 537 | 90 981 | 287 135 | (4 190) | - | 1 733 123 |
| Internal revenues | 8 575 | - | 22 801 | 8 306 | 2 092 | (41 774) | - |
| Total operating revenues | 786 236 | 581 537 | 113 782 | 295 441 | (2 098) | (41 774) | 1 733 123 |
| Net operating revenues | 659 056 | 550 027 | 92 754 | 240 063 | (3 265) | - | 1 538 634 |
| Operating expenses | 592 291 | 508 864 | 75 794 | 229 945 | (1 058) | - | 1 405 836 |
| EBITDA | 66 765 | 41 163 | 16 959 | 10 118 | (2 207) | - | 132 798 |
| Depreciation and amortisation | 7 277 | 11 737 | 1 071 | 2 533 | (17) | - | 22 600 |
| EBIT | 59 488 | 29 426 | 15 888 | 7 585 | (2 190) | - | 110 197 |
| Associates and joint ventures | 157 | - | 442 | - | - | - | 599 |
| Receivables 1) | 362 158 | 275 606 | 78 855 | 185 590 | 3 163 | (17 399) | 887 972 |
| Number of employees | 903 | 827 | 197 | 454 | 130 | - | 2 511 |
1) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
| Amounts in TNOK | Greater Oslo Area |
Regions Norway |
Inter national |
LINK arkitektur |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|
| External revenues | 1 544 298 | 1 102 266 | 188 113 | 553 720 | (12 997) | - | 3 375 399 |
| Internal revenues | 76 551 | 30 420 | 37 720 | 33 773 | 4 377 | (182 842) | - |
| Total operating revenues | 1 620 848 | 1 132 686 | 225 834 | 587 493 | (8 620) | (182 842) | 3 375 399 |
| Net operating revenues | 1 306 957 | 1 027 303 | 177 753 | 488 829 | (23 200) | - | 2 977 642 |
| Operating expenses | 1 226 319 | 990 216 | 158 438 | 457 771 | (19 845) | - | 2 812 898 |
| EBITDA | 80 638 | 37 087 | 19 315 | 31 058 | (3 354) | - | 164 744 |
| Depreciation and amortisation | 16 044 | 24 085 | 2 038 | 5 591 | (967) | - | 46 791 |
| EBIT | 64 594 | 13 002 | 17 278 | 25 467 | (2 387) | - | 117 953 |
| Associates and joint ventures | 1 951 | - | (1 055) | 261 | - | - | 1 157 |
| Receivables 1) | 497 035 | 248 558 | 90 870 | 206 312 | 5 025 | (78 478) | 969 322 |
| Number of employees | 1 179 | 841 | 216 | 475 | 140 | - | 2 851 |
1) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
An adjustment to the business area definitions was implemented from 1 January 2017 in response to recent market developments. The new business areas and the respective operating revenues
for the second quarter 2018, first half 2018 and full year 2017 are presented in the table below.
| Amounts in TNOK | Q2 2018 | H1 2018 | FY 2017 |
|---|---|---|---|
| Buildings & Properties | 460 278 | 934 596 | 1 512 696 |
| Industry | 62 803 | 117 511 | 204 313 |
| Oil & Gas | 26 763 | 53 383 | 106 801 |
| Renewable Energy | 112 662 | 237 278 | 433 116 |
| Transportation | 252 939 | 480 327 | 782 615 |
| Water & Environment | 76 897 | 148 907 | 233 044 |
| City & Society | 35 690 | 78 008 | 102 814 |
| Total | 1 028 033 | 2 050 012 | 3 375 399 |
Buildings & Properties include advisory and engineering at all stages of a construction project for all types of buildings. The business area provides services such as demand- and feasibility studies, sketch pre-project, detailed design and follow-up during the construction period, and real estate consultancy. The focus is on sustainable and long-term solutions. LINK arkitektur is included.
Cities & Society includes complex early-stage planning in urban areas. Mobility, infrastructure, area solutions and real estate development are core markets. The focus is on creating innovative solutions and contribute to building attractive cities of the future.
Industry offers complete, interdisciplinary advisory and engineering services in all project phases. Services include investigations, project development, project management, design and procurement, construction with all technical systems, construction management and follow-up, and commissioning.
Oil & Gas provides services throughout the whole value chain, from early phase studies through FEED (Front End Engineering Design) to detailed engineering and delivery for both onshore and offshore projects. Services provided onshore are within terminal and production facilities, facilities and constructions, harbour and marine constructions, underground warehouses, land-based pipelines and landfills, and electrical substations. Services provided offshore are within oil and gas rigs and platforms, concrete marine constructions, modules and structures for rigs and platforms, seabed installations, arctic climate technology for floating and subsea constructions, and noise and vibration measurement amongst others.
Renewable Energy covers the entire project life cycle in hydropower, transmission and distribution, land-based wind power andsolar energy. Services provided are from start-up and preliminary studies to detailed design and construction management, commissioning and operational shutdown.
Transportation largely comprises advisory services for planning safe and forward-looking transport systems. The business area covers road, rail, airport, harbor and channel transport systems.
Water & Environment includes services in all phases of the lifetime of a project including inspections, engineering, operation and maintenance, and remediation and demolition. Focus is placed on sustainable development of the environment through advisory services related to Greenhouse gas emissions, flood and mud slide protection, water and drains, blue-green structures and issues related to pollution of air, water and soil.
The group's net operating revenues are affected by the number of working days within each reporting period while employee expenses are recognised for full calendar days. The number of working days in a month is affected by public holidays and vacations. The timing of public holidays (e.g. Easter) during
quarters and whether they fall on weekends or weekdays impacts revenues, earnings, cashflows and working capital balances. Generally, the company's employees are granted leave during Easter and Christmas. The summer holidays primarily impact the month of July and the third quarter.
The Annual General Meeting on 3 May 2018 resolved payment of ordinary dividents related to the 2017 financial year of NOK 40.5 million (NOK 1.50 per share) that was paid to the shareholders registred on 3 May 2018.
See note 22 to the consolidated financial statements for 2017 for a description of related parties and related parties transactions in 2017.
Among the Company's shareholders Stiftelsen Multiconsult (the Multiconsult Foundation) is considered to be a related
Multiconsult ASA has a share purchase programme for all its employees. Through the share purchase programme the company offers its employees shares in Multiconsult ASA with a discount of 20%. Shares purchased through the programme are subject to a two-year lock-up period.
The board of directors implemented a variable performance based bonus scheme for the group management effective from party according to IFRS due to its ownership and influence. The Foundation had a shareholding of 19.8% at 31 December 2017 and 19.8% at 30 June 2018.
The company has 0 treasury shares as of 30 June 2018.
For the periods presented there are no dilutive effects on profits or number of shares. Basic and diluted earnings per share are therefore the same.
| Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | FY 2017 | |
|---|---|---|---|---|---|
| Profit for the period (in TNOK) | 37 036 | 10 972 | 62 310 | 83 035 | 79 534 |
| Average no shares | 26 969 973 | 26 242 784 | 26 970 183 | 26 241 964 | 26 407 850 |
| Earnings per share (NOK) | 1.37 | 0.42 | 2.31 | 3.16 | 3.01 |
For a description of the corporate pension schemes see note 11 to the consolidated financial statements for 2017.
Multiconsult ASA and Multiconsult Norge AS has a defined contribution pension plan that covers all the employees in the two companies. Other defined benefit pension plans in the group still exist for three employees in LINK arkitektur AS and two individual agreement in Multiconsult Norge AS.
The group's financial instruments are interest bearing debt, accounts receivables and other receivables, cash and cash equivalents and accounts payables. It is assumed that the
book value is a good approximation of fair value for the group's financial instruments.
| Amounts in TNOK | NOK 30 June 2018 |
NOK 30 June 2017 |
NOK 31 December 2017 |
Local currency 30 June 2018 |
Local currency 30 June 2017 |
Local currency 31 December 2017 |
Local currency |
|---|---|---|---|---|---|---|---|
| Multiconsult ASA | 214 978 | 241 993 | 215 000 | 214 978 | 241 993 | 215 000 | NOK |
| Multiconsult Norge AS | 164 414 | - | 70 938 | 164 414 | - | 70 938 | NOK |
| Multiconsult UK | - | - | - | - | - | - | GBP |
| Iterio AB | - | - | - | - | - | - | SGD |
| Multiconsult Polska | 665 | 700 | - | 306 | 309 | - | PLN |
| LINK arkitektur AB | 1 287 | 1 428 | - | 1 414 | 1 438 | - | SEK |
| aarhus arkitekterne | 2 740 | 2 683 | 2 838 | 2 147 | 2 177 | 2 279 | DKK |
| Total | 384 084 | 246 804 | 288 776 | - | - | - |
The group owns a limited amount of shares and participations available for sale (NOK 0.5 million), and it is assumed that the book value is a good estimate of fair value. Fair value of
derivatives (currency swaps) were recorded with an unrealised loss (liability) of NOK 0.2 million at 30 June (NOK 1.5 million at 31 March 2018).
Multiconsult uses alternative performance measures for periodic and annual financial reporting in order to provide a better understanding of the group's underlying financial performance.
| Amounts in MNOK (except percentage) | Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | FY 2017 |
|---|---|---|---|---|---|
| Net operating revenues | 887.6 | 738.9 | 1 746.7 | 1 538.6 | 2 977.6 |
| Estimated calender effect 1) | (67.2) | - | (12.8) | - | - |
| Adjusted net operating revenues | 820.4 | 738.9 | 1 759.5 | 1 538.6 | 2 977.6 |
| Reported employee benefit expenses | 660.5 | 580.9 | 1 323.9 | 1 139.9 | 2 265.4 |
| Reported other operating expenses | 165.8 | 130.8 | 313.0 | 266.0 | 547.5 |
| Operating expenses | 826.3 | 711.6 | 1 636.9 | 1 405.8 | 2 812.9 |
| Adjusted EBITDA | (5.9) | 27.3 | 122.5 | 132.8 | 164.7 |
| Depreciation, amortisation and impairments | 12.4 | 11.5 | 24.7 | 22.6 | 46.8 |
| Adjusted EBIT | (18.3) | 15.8 | 97.8 | 110.2 | 118.0 |
| Adjusted EBITDA margin (%) | (0.7%) | 3.7% | 7.0% | 8.6% | 8.2% |
| Adjusted EBIT margin (%) | (2.2%) | 2.1% | 5.6% | 7.2% | 6.2% |
1) Figures show effect on earnings from the corresponding period previous year arising from changes in available working days.
| Amounts in MNOK | Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | FY 2017 |
|---|---|---|---|---|---|
| Non-current interest bearing liabilities | 196.9 | 97.7 | 196.9 | 97.7 | 195.2 |
| Current interest bearing liabilities | 187.2 | 149.1 | 187.2 | 149.1 | 93.6 |
| Cash and cash equivalents | 132.2 | 157.8 | 132.2 | 157.8 | 154.3 |
| Net interest bearing debt | 251.9 | 89.0 | 251.9 | 89.0 | 134.5 |
| Amounts in MNOK | Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | FY 2017 |
|---|---|---|---|---|---|
| Equity | 590.9 | 516.0 | 590.9 | 516.0 | 582.1 |
| Total assets | 1 949.0 | 1 606.3 | 1 949.0 | 1 606.3 | 1 811.1 |
| Equity ratio | 30.3% | 32.1% | 30.3% | 32.1% | 32.1% |
Nedre Skøyen vei 2, 0276 Oslo P O Box 265 Skøyen, 0213 Oslo Telephone 21 58 50 00 Fax 21 58 50 01
[email protected] www.multiconsult.no Org no 910 253 158
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