Bouvet

Earnings Release • Aug 25, 2016

Interim presentation Second quarter 2016

Sverre Hurum. CEO Erik Stubø. CFO 25 August 2016

"Our customers have become digital significantly faster than we predicted"

"Technology like automatisation, remote operations and 4D technology are essentially to be efficient, profitable and sustainable"

"We have to collaborate considerably closer with our customers in order to develop products that the end consumer demand"

Aftenposten 19.08.2016

Highlights in the quarter

• Revenue and EBIT
• Operating revenues increased by 9.4 percent to NOK 345.3 million (yo-y)
• EBIT increased by 18.4 percent to NOK 41.0 million (y-o-y)
• 1033 employees
• Down 3 from Q1'16
• An increase of 15 in the past 12 months
• Strong growth in demand for system development as the pace of digital transformation is accelerating

Revenue and number of employees

MNOK and number

0

Q2'11 Q2'12 Q2'13 Q2'14 Q2'15 Q2'16

Operational Review

Increase in public sector

Business sectors Q2 2016

Sectors with high increase in revenue

• Public admin
• Increased by 40.8 percent (y-o-y)
• Represents 24.4 percent of total revenues in Q2'16
• Transportation
• Increased by 33.1 percent (y-o-y)
• Represents 11.4 percent of total revenues in Q2'16
• Health
• Increased by 7.9 percent (y-o-y)
• Represents 4.8 percent of total revenues in Q2'16
• Bank and finance
• Increased by 32.5 percent (y-o-y)
• Represents 4.1 percent of total revenues in Q2'16

Long-term client relation leads to partnership

• Digitalised The Norwegian National Rail Administration over a period of 12 years
• Delivered more than 200 000 hours since 2004

2004 EREX	2010 BEST Short time	2012 Frame agreement	FIDO	2013 ARIS	2014 SESAM	2016 BEST Long time	SESAM
Energy metering for train operating in one or more countries. Used for accurately billing	Ordering system for train and rail track maintenance	System development, Project management, Infrastructure, Consulting, Security	Distribution of announcements to train conductors, train companies, etc.	Process and modelling system for business processes	Piloting as datahub to exchange and synchronize data	Ordering system for train and rail track maintenance	Chosen as preferred datahub

Live streaming from Rio 2016 on TV2

• Implemented the video player at TV2.no and SUMO, and made the events at Rio 2016 available 24/7 on all platforms
• 2,8 million video streams the first weekend of OL
• Between 900k and 1100k unique viewers daily

Robots reduce costs by digitalisation

• Robotic Process automation to digitalise letters to the citizens of Bergen municipality
• Reducing cost by 12-13 million NOK
• Increased efficiency. A "digital employer" handles 720 letters in one day

User-focused digitalisation and mobility

• Bouvet's mobile solutions for time, travel, expenses and workflow for public employees give high return on low investment
• Statoil has signed a contract for use of the apps

Customer and project mix

• Project mix
• Variable contracts account for 96.1 percent of total revenues
• Client portfolio
• The 10 largest customers represent 34.4 percent of total revenues – down from 39.3 percent in Q2'15
• The 20 largest customers represent 47.1 percent of total revenues – down from 52.5 percent in Q2'15

Variably priced contracts share of revenues Percentage

10 largest customers share of revenues Percentage

Client development

• Existing clients*
• Accounted for 89.4 percent of revenues in Q2'16
• New customers**
• Customer won over the past year generated revenues of NOK 36.6 million in Q2'16

* 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

Revenue customer split MNOK

Enthusiastic and competent employees

• 1 033 employees at the end of the first quarter
• Down 3 from Q1'16
• 15 more employees in the past 12 months
• Average number of employees in the quarter up 2.7 percent from Q2'15

Number of employees end of quarter

Annual growth in number of employees Percentage

Financial Review

	Three months ending			Twelve months ending
MNOK	30.06.2016	30.06.2015	Change	30.06.2016	30.06.2015	Change
Operating revenue	345.3	315.7	9.4 %	1 258.0	1 198.2	5.0 %
Operating profit (EBIT)	41.0	34.6	18.4 %	94.0	95.1	-1.1 %
EBIT margin	11.9 %	11.0 %		7.5 %	7.9 %
Ordinary profit before tax	41.0	35.4	15.6 %	95.2	97.5	-2.4 %
Profit for the period	30.9	25.4	21.5 %	69.7	70.0	-0.5 %
EPS (fully diluted)	2.94	2.41	22.0 %	6.74	6.77	-0.4 %
Net cash flow operations	24.8	28.6	-13.2 %	106.8	76.5	39.7 %
Equity ratio	34.4 %	35.8 %		34.4 %	35.8 %
Cash and cash equivalents	106.1	89.7	18.3 %	106.1	89.7	18.3 %
Number of employees (end of period)	1 033	1 018	1.5 %	1 033	1 018	1.5 %
Number of employees (average)	1 037	1 010	2.7 %	1 031	991	4.1 %

Revenue

• Revenues increased by 9.4 percent y-o-y
• Revenues from own consultants increased by 6.8 percent to NOK 286.8 million
• Revenues from sub-contracted consultants increased by 41.4 percent to NOK 43.0 million
• Other revenues declined by 7.1 percent to NOK 15.5 million

Revenue split (quarterly figures) MNOK

Revenue split (12 months rolling average)

Revenues from own consultants

• Increased 6.8 percent y-o-y
• 62 workdays in Q2'16 three more than Q2'15
• Negative impact from decline in billing ratio by 1.8 percentage points
• Positive impact from 2.7 percent increase in average number of employees
• Positive impact from 0.4 percent increase in prices for group hourly services

Revenue per employee (quarterly figures) TNOK

Revenue per employee (12 months rolling average)

Analysis of change in revenues y-o-y

Change in revenues – effect on EBIT

Revenue MNOK

Earnings

• Operating profit increased y-o-y in Q2'16
• EBIT margin of 11.9 percent compared to 11.0 percent in Q2'15
• Operating expenses increased by 8.2 percent compared to Q2'15
• General growth in pay rate 1.4 percent y-o-y
• Other operating expenses increased 2.4 percent

EBIT and EBIT margin

MNOK and Percent

EBIT and EBIT margin (12 months rolling) MNOK and Percent

Cash flow

• Cash flow from operations
• NOK 24.8 million in Q2'16 compared to NOK 28.6 million in Q2'15
• Rolling 12 months
• Operational cash flow over the last 12 months was NOK 106.8 million
• Cash flow from investing activities
• Negative NOK 4.2 million compared to negative NOK 3.4 million in Q2'15

Cash flow from operations (per quarter) MNOK

Cash flow from operations (LTM)

Outlook

Outlook

• The pace of digital transformation is accelerating
• Sharing between industries and countries accelerate innovation
• Robot technology opens for more companies to move their production back to Norway
• Local authorities are not up to speed on digitalisation
• Increase of customised solution to meet the market demand
• Need for recruitment

"We will develop complex steering systems that requires great developers and in-depth energy system understanding. Bouvet was best to substantiate how to ensure efficient development and governance of Fifty over time.

Beate Sander Krogstad, Project Director, Statnett

Shareholders as of 24.08.2016

Investor	Number of shares	% of total
STENSHAGEN INVEST AS	1 108 402	10,81 %
VARNER KAPITAL AS	1 070 000	10,44 %
PROTECTOR FORSIKRING ASA	700 000	6,83 %
VPF NORDEA AVKASTNING	676 120	6,60 %
MP PENSJON PK	569 904	5,56 %
HURUM SVERRE FINN	507 252	4,95 %
VEVLEN GÅRD AS	420 000	4,10 %
SIX SIS AG	400 000	3,90 %
STUBØ ERIK	236 752	2,31 %
STOREBRAND VEKST	217 620	2,12 %
STOREBRAND NORGE I	211 289	2,06 %
DYVI INVEST AS	200 000	1,95 %
TELENOR PENSJONSKASSE	186 800	1,82 %
VERDIPAPIRFONDET STOREBRAND OPTIMA	142 541	1,39 %
VOLLE ANDERS	121 076	1,18 %
AAT INVEST AS	100 000	0,98 %
VERDIPAPIRFONDET KLP AKSJENORGE	98 624	0,96 %
J.P. MORGAN CHASE BANK N.A. LONDON	80 245	0,78 %
RADIG NILS-HÅKAN	79 599	0,78 %
SVENDSEN PAUL HALLAN	74 213	0,72 %
Number of shares held by the 20 largest shareholders	7 200 437	70,25 %