Multiconsult

Earnings Release • Feb 28, 2018

Multiconsult ASA fourth quarter and full year 2017

Multiconsult ASA fourth quarter and full year 2017

Multiconsult delivered strong revenue growth in the fourth quarter and for the

year, mainly driven by acquisitions. EBIT for the fourth quarter was negative

NOK 2.7 million, impacted by challenging project execution. Improved results

from LINK arkitektur in the quarter impacted earnings positively. Full year 2017

EBIT was NOK 118.0 million. Comprehensive integration and onboarding of Hjellnes

group is on track. Profitability improvement program is launched to improve

margins.

Oslo, 28 February 2017 - Fourth quarter net operating revenues for the

Multiconsult group increased by 21.1 per cent to NOK 830.2 million, compared to

the same quarter last year. The increase in net operating revenues reflects

higher production due to acquisition of the Hjellnes group, Iterio AB and aarhus

arkitekterne A/S, in addition to net recruitment. However, challenging project

execution on many projects in Regions Norway and Greater Oslo Area resulted in

net write-downs of NOK 21.4 million, which together with the decrease in the

billing ratio to 68.4% (69.0%), impacted operating revenues negatively in the

quarter. Billing rates increased moderately compared to the fourth quarter 2016.

For the full year net operating revenues increased by 14.3 per cent to NOK 2

977.6 million, driven by acquisitions and net recruitment.

EBIT for the quarter was negative NOK 2.7 million (NOK 18.9 million), reflecting

higher net operating revenues, which were more than offset by higher operating

expenses in the quarter. For the year 2017 as a whole, EBIT was NOK 118.0

million (NOK 182.3 million), a decrease of 35.3% compared to the same period

previous year.

Multiconsult made several acquisitions throughout the year. The most significant

was the acquisition of the Norwegian multidisciplinary engineering consultant

company Hjellnes group, comprising of Hjellnes Consult AS and Johs Holt AS.

In the light of the weak results in 2017, the group is launching a comprehensive

profitability program with a target of improving the EBIT margin to a minimum of

6 per cent for 2018. The program focuses primarily on improving operations in

the Greater Oslo Area and Regions Norway by improving sales, billing ratio and

project execution.

The Board of Directors will propose to the annual general meeting a dividend of

NOK 1.50 per share for 2017, in line with the dividend policy.

- As we look at the full year 2017, I am pleased to see the strong growth in

revenues and successful completion of the M&A strategy in Norway, according to

our 3-2-1 growth objectives. Profitability has been challenging this year and in

response we have launched a comprehensive profitability improvement program that

will pave way for improved profitability towards 2020. I am excited about the

significant Fornebubanen award in addition to solid improvement in LINK

arkitektur that resulted in impressive order intake within hospitals across the

group, says CEO of Multiconsult ASA Christian Nørgaard Madsen.

The order backlog remains strong at the end of the year and was NOK 2 147.7

million (NOK 1 793.1 million), an increase of 19.8 per cent year on year.

Order intake during the fourth quarter increased by 8.4 per cent to NOK 1 026.9

million (NOK 947.1 million). There was solid order intake within Buildings &

Properties, Transportation and Renewable Energy in the quarter. New order intake

from the Hjellnes group and Iterio impacted the order intake positively compared

to last year. Among important new contracts this quarter were the Northern

Lights Carbon Capture and Storage project for Statoil and Drammen Hospital for

Helse Sør-Øst RHF as well as NTNU Faculty of Health and Social Sciences &

Student Union Athletics for Backe Trondheim AS. Order intake year to date as of

31 December 2017 was NOK 3 762.5 million (NOK 3 084.7 million).

The company successfully completed the employee share purchase programme in the

fourth quarter, in which approximately 23 per cent of employees across the

Multiconsult group signed up for shares. "It is very inspiring to see that the

employees across the Multiconsult group continue to participate in the employee

share purchase programme, now successful for the third year in a row", says CEO

of Multiconsult ASA Christian Nørgaard Madsen.

Group balance sheet remains solid as of 31 December 2017 with total assets of

NOK 1 662.6 million and total equity of NOK 582.1 million. The group had cash

and cash equivalents of NOK 154.3 million, while net interest bearing debt was

NOK 134.5 million.

The overall market outlook is fairly positive. Market rates have shown some

improvement, however the cost level for the Norwegian workforce is creating

challenges to profitability for the industry in general. Multiconsult's strong

market position, flexible business model and wide service offering provides a

sound base for further growth, both domestic and international.

A presentation of the fourth quarter 2017 results will be held today, 28

February, at 09:00 CET at Hotel Continental, Stortingsgaten 24/26, Oslo. CEO

Christian Nørgaard Madsen and CFO Anne Harris will host the presentation.

A live webcast from the presentation can be accessed at www.multiconsult-ir.com

and at http://webtv.hegnar.no/presentation.php?webcastId=77877108

For further information, please contact:

Investor relations:

Mirza Koristovic, Head of Investor Relations

Phone: +47 93 87 05 25

E-mail: ir@multiconsult.no

Media:

Gaute Christensen, VP Communications

Phone: +47 91 17 01 88

E-mail: gaute.christensen@multiconsult.no

ABOUT MULTICONSULT

Multiconsult is a leading Norwegian multidisciplinary engineering consulting

company, with more than 2 500 employees and 45 offices in Norway and abroad. The

Company focuses on six business areas: Buildings & Properties, Transport,

Renewable Energy, Oil & Gas, Industry and Water & Environment. The Company has

an operating history that spans more than a century, with the inception of Norsk

Vandbygningskontor in 1908.