Bouvet

Earnings Release • Feb 27, 2014

27 February 2014

About Bouvet

Bouvet provides services in the fields of information technology, digital communication and enterprise management. At 31 December, it had 931 employees divided between 14 offices in Norway and Sweden.

The company is a strategic partner for a number of enterprises, helping them to shape digital solutions which create new business opportunities. Clients appreciate Bouvet's good grasp of their operations, and a broad range of services allows it to act as a turnkey supplier. Bouvet is committed to maintaining long-term client relationships.

Bouvet's regional model with local offices confers clear benefits in marketing work and competitiveness. Many enterprises consider it important that the supplier of business-critical systems has a local presence and expertise. This also makes it easier to establish a long-term relationship and thereby acquire knowledge of the client's business and systems.

As a result of its clear concentration on the principles for managing the business, Bouvet comes across as a solid, well-run and reputable company. In addition to its standards for delivering good solutions, the company sets strict requirements for ethics, conflicts of interest, security, openness and accountability. Bouvet's close relations with clients are possible because the company and its employees execute their assignments with a high degree of integrity.

Highlights of the fourth quarter 2013

• · Good demand in all Bouvet's service areas
• · Operating revenues up 6.3 per cent from the same period of 2012 to NOK 298.2 million
• · Operating profit up 28.5 per cent from the same period of 2012 to NOK 27.2 million
• · Cash flow from operations of NOK 92.8 million, compared with NOK 94.7 million in the same period of 2012
• · Strategy of delivering services up close to the client's business has yielded results

MILLIONS NOK	OCT-DEC 2013	OCT-DEC 2012	CHANGE %	JAN-DEC 2013	JAN-DEC 2012	CHANGE %
Revenue	298,2	280,5	6,3 %	1 112,7	1 030,3	8,0 %
Operating profit (EBIT)	27,2	21,2	28,5 %	95,1	78,2	21,5 %
Ordinary profit before tax	27,9	21,8	28,2 %	97,1	80,2	21,2 %
Profit for the period	20,0	14,7	36,8 %	69,8	56,6	23,5 %
Net cash flow operations	92,8	94,7	-2,0 %	99,4	97,4	2,0 %
Cash and cash equivalents	169,2	137,8	22,8 %	169,2	137,8	22,8 %
Number of employees (end of period)	931	881	5,7 %	931	881	5,7 %
Number of employees (average)	928	879	5,6 %	908	848	7,1 %
Earnings per share	1,94	1,41	37,8 %	6,75	5,41	24,8 %
Diluted earnings per share	1,92	1,39	37,7 %	6,67	5,35	24,8 %
EBIT margin	9,1 %	7,6 %		8,5 %	7,6 %
Equity ratio	35,9 %	34,7 %		35,9 %	34,7 %

Key figures

Financial results

Operating revenues

Bouvet had operating revenues of NOK 298.2 million in the fourth quarter, compared with NOK 280.5 million in the same period of 2012. That represented an increase of 6.3 per cent. Rates for the group's hourly based services rose by 1.9 per cent from the fourth quarter of 2012. The billing ratio for the group's consultants was up by 2.3 percentage points from the same period of the year before. Operating revenues from the sale of services by sub-contractors totalled NOK 39.2 million, down by NOK 9.2 million from the fourth quarter of 2012. A 5.6 per cent increase in the average number of employees over the same period contributed to the 6.3 per cent rise in total operating revenues.

Sales to existing clients made good progress during the quarter. Clients who also used the group in the fourth quarter of 2012 accounted for 92.2 per cent of operating revenues. In addition, clients acquired since 31 December 2012 contributed a total of NOK 23.4 million to fourth-quarter operating revenues.

Operating revenues for the full year came to NOK 1 112.7 million, an increase of eight per cent. Rates for the group's hourly based services rose by 2.4 per cent from 2012. The billing ratio for the group's consultants was 1.9 percentage points higher than the year before. Operating revenues from the sale of services by sub-contractors totalled NOK 159.4 million, down by NOK 26.8 million from 2012. A 7.1 per cent increase in the average number of employees over the full year contributed to the eight per cent rise in total 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 13.1 per cent, compared with 17.2 per cent in the fourth quarter of 2012. Figures for the full year were 14.3 and 18.1 per cent respectively. The group's long-term target is that this share should be approximately 15 per cent of total operating revenues.

Operating costs

Bouvet's operating costs, including depreciation and amortisation, were NOK 271 million for the fourth quarter, up from NOK 259.3 million in the same period of 2012. That represents a rise of 4.5 per cent. Payroll costs increased because the average number of employees rose, in addition to the general growth in pay rates. The group experienced a general rise in pay of 3.7 per cent over the past 12 months. The cost of sales was NOK 36.7 million, compared with NOK 45.7 million in the fourth quarter of 2012, and primarily comprised procurement of sub-contractor services and the hire of course instructors. Other operating costs rose by 4.7 per cent from the fourth quarter of 2012 to NOK 30.9 million. This increase primarily reflected increased costs related to consultancy, IT and telecommunications.

Operating costs for the full year rose by 6.9 per cent from 2012, while revenues were up eight per cent.

Higher payroll costs because the average number of employees rose were also the principal reason for the growth in operating costs over the full year. While the average number of employees was up by 7.1 per cent from 2012, payroll costs increased by NOK 83.9 million or 12.7 per cent. The cost of sales fell by NOK 19.8 million or 11.5 per cent from 2012. Other operating costs rose by NOK 0.8 million or 0.7 per cent to reach NOK 111.6 million for the year.

Profit

Operating profit (EBIT) for the fourth quarter came to NOK 27.7 million, compared with NOK 21.2 million in the same period of 2012. That represents a 28.5 per cent increase. The EBIT margin thereby rose from 7.6 per cent the year before to 9.1 per cent. Net profit came to NOK 20 million, compared with NOK 14.7 million in the same period of 2012. Diluted earnings per share were NOK 1.92 for the quarter, compared with NOK 1.39 in the same period of 2012.

For the full year, operating profit amounted to NOK 95.1 million, compared with NOK 78.2 million in the same period of 2012. That represented a rise of 21.5 per cent. The EBIT margin

Employees (end of period)

Operating profit (EBIT)

NOK MILLION

rose from 7.6 per cent for 2012 to 8.5 per cent. Net profit came to NOK 69.8 million, which gave diluted earnings per share of NOK 6.67. That compared with a net profit of NOK 56.6 million and diluted earnings per share of NOK 5.35 in 2012.

Cash flow, liquidity and capital adequacy

Cash flow from operations for the group was NOK 92.8 million in the fourth quarter, compared with a NOK 94.7 million in the same period of 2012. Cash flow was affected positively by a reduction of NOK 24.1 million for work in progress and a rise of NOK 53.2 million in current liabilities from the third quarter of 2013. Working capital related to clients and other current receivables rose by NOK 7 million from the third quarter of 2013 had a negative effect on cash flow.

The group's client portfolio consists mainly of large, solid listed companies and public enterprises. No bad debts were suffered during 2013, and the group has good oversight and control of its receivables.

Bouvet has no interest-bearing debt. Bank deposits at 31 December totalled NOK 169.2 million, compared with NOK

Developments and market

Demand for services related to communication, IT and digitalisation of operations is high in all the sectors where Bouvet works in Norway.

Retailing is becoming increasingly digitised, both to enhance the efficiency of internal processes and to pursue electronic trading and dialogue with customers.

In the public sector, the new government has signalled a change of pace towards greater digitisation. Bouvet has a solid foothold here. The Government Data Forum presents its Lighthouse Prize every year to public institutions which have made a particularly positive mark in the ICT area. When this award was made in October, the Norwegian Environment Agency took first place and the Answer Out service from the Norwegian Association of Local and Regional Authorities (KS) was second. Both use Bouvet as their development partner.

137.8 million a year earlier. The company had an undrawn overdraft facility of NOK 50 million at 31 December. It held 19 356 of its own shares at 31 December. Equity at 31 December totalled NOK 159.8 million, representing an equity ratio of 35.9 per cent. Corresponding figures a year earlier were NOK 142.3 million and 34.7 per cent. Bouvet's long-term target is to maintain an equity ratio in excess of 30 per cent.

Segment reporting

The group does not report internally by business areas or segments in an accounting sense. Its business is homogenous and pursued within the Nordic market for IT consultancy services. Risk and return are followed up at departmental level within homogenous consultancy departments with shared markets, on a project basis and per consultant. This does not provide a basis for segment reporting, which is accordingly not presented. Should changes be made to the group's business, the possibility that these changes might provide a basis for segment reporting will be assessed.

Activity remains high in the oil and gas sector. Statoil is Bouvet's biggest customer, and purchases services in all the company's Norwegian regions. Cost cuts at Statoil have somewhat reduced activity with this client. However, that has been offset by increased work for other petroleum-sector clients. Bouvet currently has five separate agreements with Statoil, covering system development services, a frame agreement on consultant hire, and enterprise contracts for oil trading and operation, the service centre and business process services. The contract for system development services in the largest of these, and was extended for two years after 31 December.

The market in Sweden remains challenging, but Bouvet also increased turnover there.

Revenues – client split

Several development trends characterise the market.

• Cloud computing: Clients are looking for good ways of standardising and using services in this area. Bouvet is increasingly making deliveries where all or part of the solution lies in the cloud.
• Security: The attention paid by clients to security and identity management increased sharply over the past year. Bouvet has good expertise with both technical and organisational aspects of security.
• Mobile services: Enterprises want to equip their personnel with mobile units and applications. That also applies very much to Bouvet's clients.
• E-commerce: A maturing has occurred over the past year with e-commerce in Scandinavia. It is no longer the case that only certain products are traded on the web. The whole retail sector faces major changes. With its expertise in

Regional developments

Rogaland region

BERGEN Bouvet is winning many new assignments in Rogaland from both new and existing clients. Services are well adapted to market demand. Examples of major clients in the region include Statoil, GDF Suez,

Total, Wintershall, ConocoPhillips and Lyse.

OSLO SANDVIKA SANDEFJORD KRISTIANSAND SKIEN ÖREBRO Bouvet secured frame agreements during the quarter from the Norwegian Petroleum Directorate's Oil for Development assistance programme. This covers a number of services, including information and document management. Eni is an important client experiencing strong growth, and Bouvet is now also delivering services related to technical information. In addition, it is involved in a project to build business intelligence solutions for Lyse, a key player in the region. DeepOcean is a very interesting company in the Haugesund area, where Bouvet is now delivering consultancy.

TRONDHEIM MALMÖ A steadily growing share of turnover in Rogaland occurs through delivery models where Bouvet takes greater delivery responsibility.

The Olavstoppen subsidiary, which provides services in Rogaland within digital communication, has a good reputation and delivered positive results during the quarter.

business systems, customer experience, the web, mobiles and advertising, Bouvet is very well equipped to take market share in this area.

• Hands-on digital consultants: Digital solutions now play a key role in the production and sale of goods and services. This calls for advisers who understand business, technology and culture. The trend towards offshoring routine tasks is also increasing the need for players who understand business and culture. They help to implement processes and shape solutions which are close to the business and non-routine. With its expertise and organisation, Bouvet is well positioned to provide such personnel.
• Coherence and efficiency: With a multitude of communication channels and IT systems, a growing number of clients are striving to create efficient system management, good enterprise architecture and overall user experiences. Bouvet has very broad expertise, and is thereby well equipped to support clients in this work. HAUGESUND STAVANGER

Eastern region

ARENDAL SANDEFJORD KRISTIANSAND SKIEN Demand for Bouvet's services in the eastern region is extremely good. A number of clients commissioned extensions and new assignments during the quarter. The largest of these were Cappelen Damm, Color Line,

TRONDHEIM ÖREBRO MALMÖ DNV GL Group, the armed forces, the South-East Norway Regional Health Authority (Hospital Partner), the Norwegian National Rail Administration, Sporveien, Statkraft, Statnett, Uloba and the Norwegian Directorate for Education and Training. These clients buy services in several of Bouvet's areas, such as system development, consultancy, infrastructure, SAP and digital communication.

Power supply, retailing and the public sector are the largest client categories for the eastern region. Big clients are also found in health/social care, the service sector and the building industry. During the fourth quarter, Bouvet won the job of producing the annual and sustainability reports for Cermaq, and thereby secured its first client in the fish farming sector.

The trend towards mobile activities is continuing. A solution delivered to the Norwegian National Rail Administration in the quarter includes the opportunity to provide train drivers with information on tablets rather than on paper. Bouvet has also won contracts to produce new mobile-friendly website content for the Norwegian Meteorological Institute.

Retailing and e-trading will be important areas for the eastern region in the future. Bouvet has a customer base and expertise here which provide a good basis for growth.

More and more new clients are being won by Bouvet for advertising services. During the quarter, Viasat and Netcom chose the company as their agency for dialogue marketing/ customer relationship management (CRM). HAUGESUND

Demand for SAP solutions is growing, and interest exists in the market for new concepts which enhance the user-friendliness of these. STAVANGER FORUS STAVANGER FORUS

Course activities have made good progress, and their range is in constant development. During the quarter, Bouvet developed a solution for courses and certification with the Lean methodology for inclusion in the range from 2014. Bouvet is the only course partner for SAP in Norway. SAP is currently discontinuing much of its course activity in other Nordic countries and thereby opening new opportunities for Bouvet. OSLO SANDVIKA ARENDAL SANDEFJORD SKIEN OSLO SANDVIKA

Northern region

ÖREBRO STOCKHOLM Bouvet is experiencing a good market in the northern region. The most important incidents in the quarter were two large contracts from BarentsWatch. This collaboration between more than 30 players in the scientific and public TRONDHEIM STAVANGER FORUS

sectors gathers information and maps activity related to the sea areas off Norway. Great expertise with digital mapping solutions were an important reason why Bouvet won these contracts.

The northern region is based in the mid-Norwegian city of Trondheim but, as in the third quarter, several new assignments were secured from north Norwegian clients. Health, research and education, and the public sector are the biggest client categories for the region, and new assignments were won in all of these during the quarter.

Bergen region

The market for Bouvet's services remains good in Bergen. TRONDHEIM

Activity at Statoil is high in several areas. The company opened its laboratory for environmental monito-

ARENDAL SANDEFJORD SKIEN ring of the seabed off Lofoten and Vesterålen during December. This acquires substantial amounts of data on ocean currents and marine life. Bouvet has supported Statoil with a cloud-based portal – love.statoil.com – which gives everyone access to the information. Wellcom, another delivery to Statoil during the quarter, collects and presents data for a number of

drilling and well systems in a single portal to make the planning of drilling operations more efficient.

Several assignments related to mobile-friendly web solutions were secured during the quarter. Bergen University College and the Western Norway Regional Health Authority are new Bouvet clients in this area.

TV2 remains an important client, and Bouvet helped to streamline the flow of video from TV to web ahead of the winter Olympics in Sochi. During the fourth quarter, the Norwegian Road Supervisory Authority adopted a cloudbased collaboration solution developed by Bouvet. BERGEN

Southern region

Bouvet is constantly winning new assignments in the southern region, but the market there is rather more hesitant than in the rest of Norway. Aker Solutions, Elopak, OSM Maritime Group, Statoil and Telenor are all

ÖREBRO clients who operate internationally and placed new orders during the quarter. OSM Group is a good example of the way Bouvet handles this internationally. With a strong grasp of culture and business, it coordinates development activities in Norway, the Philippines and Belarus in a flexible manner. BERGEN

MALMÖ Several assignments related to design of operator environments have been won from Aker Solutions. The public sector is also important in the southern region. During the quarter, Bouvet completed a project for digital payment of invoices for a number of local authorities in southern Norway.

Bouvet secured a frame agreement with Agder Energi during the quarter. The company already had a frame agreement with Skagerak Energi. ARENDAL KRISTIANSAND

Sweden region

Sweden remains a challenging market, with cost cuts in both private and public sectors. Bouvet nevertheless achieved growth in both turnover and employees over the past year.

ICA is Bouvet's biggest client in Sweden, and renewed its frame agreement with the company during the fourth quarter. Over the past year, Bouvet strengthened its position for delivery of web solutions to Swedish local authorities. The company won assignments during the quarter for websites, intranets and digital annual reports in the local government sector.

Bouvet also secured new contracts from Sony and Ikano during the period.

Employees

Employees are Bouvet's most important resource, and great emphasis is accordingly placed on wellbeing and professional development. The company has great stability in its management and workforce, and this represents a value in itself. Staff turnover declined further during the fourth quarter.

Risk

The group is exposed at any 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

The workforce totalled 931 people at 31 December, which represented an increase of 15 from 30 September and 50 from a year earlier.

corporate governance in the annual report for 2012 (section 9: 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.

Prospects

Bouvet is confident that demand for digital solutions and associated expertise will remain strong. However, it is difficult to know anything certain about how the market will develop. But Bouvet is organised in such a way that it can quickly adapt to market changes.

The section on developments and market identified a number of trends which characterise the market. In addition to these, Bouvet sees several areas of expertise which will be in demand in the time to come.

• Better management and utilisation of enterprise data. The multiplicity of systems and constant changes in

organisations call for intelligent and flexible integrations. Opportunities for traceability, search and analysis of enterprise information will become increasingly important.

• Opportunities for customer dialogue tailored to customer behaviour make new demands on CRM systems and digital dialogue marketing.

Bouvet is constantly prepared to seize new opportunities, and these are areas where it wants to become stronger in the time to come.

Contacts

Sverre Hurum President and CEO Tel: +47 23 40 60 00 | +47 91 35 00 47 Erik Stubø CFO Tel: +47 23 40 60 00 | +47 95 03 60 11

Declaration by the board and the chief executive

We hereby confirm to the best of our knowledge that the interim financial statements for the fourth quarter and the preliminary financial statements for 1 January-31 December 2013 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 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, 27 February 2014 The board of directors of Bouvet ASA

Åge Danielsen Chair of the board

Ingebrigt Steen Jensen Director

Axel Borge Worker director

Randi Helene Røed Deputy chair

Egil Christen Dahl Director

Sissel Johnsen Mannsåker Worker director

Grethe Høiland Director

Kay Vare Johnsen Worker director

Sverre Hurum President and CEO

Consolidated income statement

NOK 1 000	UNAUDITED OCT-DEC 2013	UNAUDITED OCT-DEC 2012	CHANGE	CHANGE %	UNAUDITED	JAN-DEC 2013 JAN-DEC 2012	CHANGE	CHANGE %
REVENUE	298 218	280 466	17 752	6,3 %	1 112 717	1 030 349	82 368	8,0 %
Other income	64	0	64	N/A	57	0	57	N/A
OPERATING EXPENSES
Cost of sales	36 714	45 726	-9 012	-19,7 %	151 996	171 763	-19 767	-11,5 %
Personell expenses	200 695	181 147	19 548	10,8 %	743 334	659 412	83 922	12,7 %
Depreciation fixed assets	2 311	2 568	-257	-10,0 %	9 404	9 317	87	0,9 %
Amortisation intangible assets	394	294	100	34,0 %	1 303	774	529	68,3 %
Other operating expenses	30 934	29 535	1 399	4,7 %	111 644	110 847	797	0,7 %
Total operating expenses	271 048	259 270	11 778	4,5 %	1 017 681	952 113	65 568	6,9 %
Operating profit	27 234	21 196	6 038	28,5 %	95 093	78 236	16 857	21,5 %
FINANCIAL ITEMS
Other interest income	802	1 087	-285	-26,2 %	2 599	2 788	-189	-6,8 %
Other financial income	72	10	62	620,0 %	310	65	245	376,9 %
Other interest expense	-83	-301	218	-72,4 %	-328	-492	164	-33,3 %
Other finance expense	-103	-206	103	-50,0 %	-536	-418	-118	28,2 %
Net financial items	688	590	98	16,6 %	2 045	1 943	102	5,2 %
Ordinary profit before tax	27 922	21 786	6 136	28,2 %	97 138	80 179	16 959	21,2 %
Income tax expense
Tax expense on ordinary profit	7 881	7 135	746	10,5 %	27 297	23 622	3 675	15,6 %
Total tax expense	7 881	7 135	746	10,5 %	27 297	23 622	3 675	15,6 %
Profit for the period	20 041	14 651	5 390	36,8 %	69 841	56 557	13 284	23,5 %
Assigned to:
Shareholders in parent company	19 707	14 434			68 677	55 455
Non-controlling interests	334	217			1 164	1 102

Statement of other income and costs

NOK 1 000	UNAUDITED OCT-DEC 2013	UNAUDITED OCT-DEC 2012	CHANGE	CHANGE %	UNAUDITED	JAN-DEC 2013 JAN-DEC 2012	CHANGE	CHANGE %
Currency translation differences	-15	-28	13	-45,3 %	336	46	290	629,7 %
Sum other income and costs	-15	-28	13	-45,3 %	336	46	290	629,7 %
Profit for the period	20 041	14 651	5 390	36,8 %	69 841	56 557	13 284	23,5 %
Total profit	20 026	14 623	5 403	36,9 %	70 177	56 603	13 574	24,0 %
Assigned to:
Shareholders in parent company	19 692	14 403			69 013	55 501
Non-controlling interests	334	217			1 164	1 102
Diluted earnings per share	1,92	1,39	0,52	37,7 %	6,67	5,35	1,32	24,8 %
Earnings per share	1,94	1,41	0,53	37,8 %	6,75	5,41	1,34	24,8 %

Consolidated balance sheet

NOK 1 000	UNAUDITED 31.12.2013	31.12.2012	CHANGE	CHANGE %
ASSETS
NON-CURRENT ASSETS
INTANGIBLE ASSETS
Deferred tax asset	155	0	155	N/A
Goodwill	18 745	18 457	288	1,6 %
Other intangible assets	6 001	5 543	458	8,3 %
Total intangible assets	24 901	24 000	901	3,8 %
FIXED ASSETS
Office equipment	9 733	7 815	1 918	24,5 %
Office machines and vehicles	1 941	2 011	-70	-3,5 %
IT equipment	11 044	12 802	-1 758	-13,7 %
Total fixed assets	22 718	22 628	90	0,4 %
FINANCIAL NON-CURRENT ASSETS
Other long-term receivables	11	11	0	0,0 %
Total financial non-current assets	11	11	0	0,0 %
Total non-current assets	47 630	46 639	991	2,1 %
CURRENT ASSETS
Work in progress	84 476	78 073	6 403	8,2 %
Trade accounts receivable	125 451	125 499	-48	0,0 %
Other short-term receivables	18 658	22 239	-3 581	-16,1 %
Cash and cash equivalents	169 222	137 845	31 377	22,8 %
Total current assets	397 807	363 656	34 151	9,4 %
TOTAL ASSETS	445 437	410 295	35 142	8,6 %

Consolidated balance sheet

NOK 1 000	UNAUDITED 31.12.2013	31.12.2012	CHANGE	CHANGE %
EQUITY AND LIABILITIES
EQUITY
PAID-IN CAPITAL
Share capital	10 250	10 250	0	0,0 %
Own shares - nominal value	-19	-1	-18	1800,0 %
Share premium fund	10 000	10 000	0	0,0 %
Total paid-in capital	20 231	20 249	-18	-0,1 %
EARNED EQUITY
Other equity	136 869	119 756	17 113	14,3 %
Total earned equity	136 869	119 756	17 113	14,3 %
Non-controlling interests	2 729	2 336	393	16,8 %
Total equity	159 829	142 341	17 488	12,3 %
LONG-TERM DEBT
Deferred tax	0	1 723	-1 723	-100,0 %
Total long-term debt	0	1 723	-1 723	-100,0 %
SHORT-TERM DEBT
Trade accounts payable	31 863	37 534	-5 671	-15,1 %
Income tax payable	28 557	19 390	9 167	47,3 %
Public duties payable	106 347	98 897	7 450	7,5 %
Other short-term debt	118 841	110 410	8 431	7,6 %
Total short-term debt	285 608	266 231	19 377	7,3 %
Total liabilities	285 608	267 954	17 654	6,6 %
TOTAL EQUITY AND LIABILITIES	445 437	410 295	35 142	8,6 %

Consolidated statement of cash flows

NOK 1 000	UNAUDITED OKT-DES 2013	UNAUDITED OKT-DES 2012	UNAUDITED JAN-DES 2013	JAN-DES 2012
CASH FLOW FROM OPERATING ACTIVITIES
Ordinary profit before tax	27 922	21 786	97 138	80 179
Paid tax	7 474	-9 646	-19 847	-27 280
(Gain)/loss on sale of fixed assets	-51	0	-41	0
Ordinary depreciation	2 311	2 568	9 404	9 317
Amortisation intangible assets	394	294	1 303	774
Share based payments	990	1 825	3 980	4 658
Changes in work in progress, accounts receivable and accounts payable	14 776	39 624	-12 026	28 530
Changes in other accruals	39 018	38 287	19 469	1 206
Net cash flow from operating activities	92 835	94 738	99 381	97 384
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of fixed assets	123	0	1 293	0
Purchase of fixed assets	-3 612	-2 524	-10 746	-17 219
Purchase of intangible assets	0	0	-1 660	0
Net cash flow from investing activities	-3 488	-2 524	-11 114	-17 219
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of own shares	0	-9 450	-11 539	-9 450
Sales of own shares	6 671	4 802	6 671	4 802
Dividend payments	0	0	-52 022	-52 027
Net cash flow from financing activities	6 671	-4 648	-56 891	-56 675
Net changes in cash and cash equivalents	96 018	87 566	31 377	23 490
Cash and cash equivalents at the beginning of the period	73 204	50 279	137 845	114 355
Cash and cash equivalents at the end of the period	169 222	137 845	169 222	137 845

Consolidated statement of changes in equity

NOK 1 000	SHARE CAPITAL	OWN SHARES	SHARE PREMIUM FUND	TOTAL PAID-IN EQUITY	OTHER EQUITY	NON CONTROLLING INTERESTS	TOTAL EQUITY
Equity at 01.01.2013	10 250	-1	10 000	20 249	119 756	2 336	142 341
Total comprehensive income					69 013	1 164	70 177
Purchase/sale of own shares (net)		-18		-18	-4 850		-4 868
Employee share scheme					4 200		4 200
Dividend					-51 250	-771	-52 021
Equity at 31.12.2013 (Unaudited)	10 250	-19	10 000	20 231	136 869	2 729	159 829
Equity at 01.01.2012	10 250	0	10 000	20 250	115 357	2 011	137 618
Total comprehensive income					55 501	1 102	56 603
Purchase/sale of own shares (net)		-1		-1	-4 646		-4 647
Employee share scheme					4 794		4 794
Dividend					-51 250	-777	-52 027
Equity at 31.12.2012	10 250	-1	10 000	20 249	119 756	2 336	142 341

Notes

Note 1: Accounting principles

The group made no changes to the accounting principles applied in 2013. 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 2012.

Key figures group

NOK 1 000	OCT-DEC 2013	OCT-DEC 2012	CHANGE %	JAN-DEC 2013	JAN-DEC 2012	CHANGE %
INCOME STATEMENT
Operating revenue	298 218	280 466	6,3 %	1 112 717	1 030 349	8,0 %
EBITDA	29 939	24 058	24,4 %	105 800	88 327	19,8 %
Operating profit (EBIT)	27 234	21 196	28,5 %	95 093	78 236	21,5 %
Ordinary profit before tax	27 922	21 786	28,2 %	97 138	80 179	21,2 %
Profit for the period	20 041	14 651	36,8 %	69 841	56 557	23,5 %
EBITDA-margin	10,0 %	8,6 %	17,0 %	9,5 %	8,6 %	10,9 %
EBIT-margin	9,1 %	7,6 %	20,8 %	8,5 %	7,6 %	12,5 %
BALANCE SHEET
Non-current assets	47 630	46 639	2,1 %	47 630	46 639	2,1 %
Current assets	397 807	363 656	9,4 %	397 807	363 656	9,4 %
Total assets	445 437	410 295	8,6 %	445 437	410 295	8,6 %
Equity	159 829	142 341	12,3 %	159 829	142 341	12,3 %
Long-term debt	0	1 723	-100,0 %	0	1 723	-100,0 %
Short-term debt	285 608	266 231	7,3 %	285 608	266 231	7,3 %
Equity ratio	35,9 %	34,7 %	3,4 %	35,9 %	34,7 %	3,4 %
Liquidity ratio	1,39	1,37	2,0 %	1,39	1,37	2,0 %
CASH FLOW
Net cash flow operations	92 835	94 738	-2,0 %	99 381	97 384	2,0 %
Net free cash flow	89 347	92 214	-3,1 %	88 267	80 165	10,1 %
Net cash flow	96 018	87 566	9,7 %	31 377	23 490	33,6 %
Cash flow margin	31,1 %	33,8 %	-7,8 %	8,9 %	9,5 %	-5,5 %
SHARE INFORMATION
Number of shares	10 250 000	10 250 000	0,0 %	10 250 000	10 250 000	0,0 %
Weighted average basic shares outstanding	10 156 624	10 249 602	-0,9 %	10 174 317	10 249 900	-0,7 %
Weighted average diluted shares outstanding	10 277 259	10 368 716	-0,9 %	10 292 902	10 369 686	-0,7 %
EBIT per share	2,64	2,05	29,2 %	9,20	7,49	22,7 %
Diluted EBIT per share	2,61	2,02	29,1 %	9,09	7,41	22,7 %
Earnings per share	1,94	1,41	37,8 %	6,75	5,41	24,8 %
Diluted earnings per share	1,92	1,39	37,7 %	6,67	5,35	24,8 %
Equity per share	15,59	13,89	12,3 %	15,59	13,89	12,3 %
Dividend per share	0,00	0,00	0,0 %	5,00	5,00	0,0 %
EMPLOYEES
Number of employees (year end)	931	881	5,7 %	931	881	5,7 %
Average number of employees	928	879	5,6 %	908	848	7,1 %
Operating revenue per employee	321	319	0,7 %	1 225	1 215	0,8 %
Operating cost per employee	292	295	-1,0 %	1 121	1 123	-0,2 %
EBIT per employee	29	24	21,7 %	105	92	13,5 %

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
EBIT-margin	EBIT / operating revenue
EBITDA	Operating profit + depreciation fixed assets and intangible assets
EBITDA-margin	EBITDA / 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

Local presence gives closeness to our customers

The Group has offices in Oslo, Trondheim, Bergen, Haugesund, Stavanger, Kristiansand, Arendal, Skien, Sandvika, Sandefjord, Malmö, Örebro and Stockholm. Our philosophy is that competence should be utilized across the company, while projects are attached locally. This means that our customers will have a local account manager and project manager, but access to competence independent of its location.

OSLO

Sandakerveien 24c, bygg D11 Box 4430 Nydalen 0403 Oslo Tel: (+47) 23 40 60 00

ARENDAL Vikaveien 29 4817 His Tel: (+47) 23 40 60 00

BERGEN Solheimsgaten 15 5058 Bergen Tel: (+47) 55 20 09 17

GRENLAND

Klostergata 33 Klosterøya 3732 Skien Tel: (+47) 23 40 60 00 KRISTIANSAND Kjøita 25 4630 Kristiansand Tel: (+47) 23 40 60 00

STAVANGER Fabrikkveien 10 4033 Stavanger Tel: (+47) 51 20 00 20

Nedre Strandgata 33 Box 344 Sentrum 4022 Stavanger Tel: (+47) 52 82 10 17

HAUGESUND Diktervegen 8 5538 Haugesund Tel: (+47) 52 82 10 17 TRONDHEIM Kjøpmannsgata 35 7011 Trondheim Tel: (+47) 23 40 60 00

SANDVIKA Leif Tronstadsplass 6 1337 Sandvika Tel: (+47) 23 40 60 00

SANDEFJORD Klinestadmoen 9 3241 Sandefjord Tel: (+47) 23 40 60 00

STOCKHOLM Arenavägen 45, 16 tr 121 77 Johanneshov Tel: (+46) 8 578 771 00 MALMÖ

Södergatan 3 211 34 Malmö Tel: (+46) 40 636 60 00

ÖREBRO Järntorgsgatan 8 70361 Örebro Tel: (+46) 8 578 771 00

www.bouvet.no www.bouvet.se