Interim presentation Third quarter 2016
Sverre Hurum. CEO Erik Stubø. CFO 10 November 2016
Dagens Næringsliv 22 October 2016
Focus on recruiting from universities
- Present at:
- NTNU, Norwegian University of Science and Technology
- University of Bergen
- Bergen University College
- University of Oslo
Highlights in the quarter
- Revenue and EBIT
- Operating revenues increased by 9.2 percent to NOK 280.4 million (y-o-y)
- EBIT increased by 82.5 percent to NOK 12.1 million (y-o-y)
- 1045 employees
- Up 12 from Q2'16
- An increase of 13 in the past 12 months
- High demand for system development and advisory services
Revenue and number of employees
Operational Review
Increase in public sector
Business sectors Q3 2016
Sectors with high increase in revenue
- Public admin
- Increased by 20.5 percent (y-o-y)
- Represents 24.0 percent of total revenues in Q3'16
- Power supply
- Increased by 19.4 percent (y-o-y)
- Represents 10.3 percent of total revenues in Q3'16
- Health
- Increased by 13.8 percent (y-o-y)
- Represents 4.9 percent of total revenues in Q3'16
- Info and communication
- Increased by 23.8 percent (y-o-y)
- Represents 4.9 percent of total revenues in Q3'16
Statnett signed a long-term agreement
- Development and maintenance of the Nordic market system FIFTY (LARM MMS)
- Duration up to 6 years
- Estimated value between 150 and 300 million NOK
Finansavisen 22 August 2016
Advisory services to realise digitalisation
- Digitalisation of Child Welfare Services to secure supervision of children in need of their services
- Digitalisation of new business processes at Hospital Pharmacies Enterprise
Advisory services to prepare for future services
- Procurement of a new intelligence system to support international police cooperation
- Procurement of new technology to digitalise the planning and building applications for the City of Trondheim
- Building a framework which secures personal data for welfare technology for the City of Oslo
Illustration: Flickr, Owen Blacker
Photo: Flickr, Martin Elan Illustration: datatilsynet.no
Customer and project mix
- Project mix
- Variable contracts account for 95.9 percent of total revenues
- Customer portfolio
- The 10 largest customers represent 36.5 percent of total revenues – down from 40.4 percent in Q3'15
- The 20 largest customers represent 48.4 percent of total revenues – down from 52.6 percent in Q3'15
Variably priced contracts share of revenues Percentage
10 largest customers share of revenues Percentage
Customer development
- Existing customers*
- Accounted for 91.3 percent of revenues in Q3'16
- New customers**
- Customers won over the past year generated revenues of NOK 24.3 million in Q3'16
* 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
- 1 045 employees at the end of the third quarter
- Up 12 from Q2'16
- 13 more employees in the past 12 months
- Average number of employees in the quarter up 1.8 percent from Q3'15
Number of employees end of quarter
Annual growth in number of employees Percentage
Financial Review
|
Three months ending |
|
|
Twelve
months ending |
|
|
| MNOK |
30.09.2016 |
30.09.2015 |
Change |
30.09.2016 |
30.09.2015 |
Change |
| Operating revenue |
280.4 |
256.8 |
9.2 % |
1
281.6 |
1 212.7 |
5.7 % |
| Operating profit (EBIT) |
12.1 |
6.6 |
82.5 % |
99.5 |
92.6 |
7.5 % |
| EBIT margin |
4.3 % |
2.6 % |
|
7.8
% |
7.6 % |
|
| Ordinary profit before tax |
11.4 |
7.0 |
62.4 % |
99.5 |
95.2 |
4.6 % |
| Profit for the period |
8.2 |
4.3 |
91.2 % |
73.6 |
67.8 |
8.6 % |
|
|
|
|
|
|
|
| EPS (fully diluted) |
0.79 |
0.40 |
97.1 % |
7.13 |
6.55 |
8.9 % |
| Net cash flow operations |
-12.8 |
-0.8 |
N/A |
94.8 |
89.7 |
5.7 % |
|
|
|
|
|
|
|
| Equity ratio |
34.0 % |
36.8 % |
|
34.0 % |
36.8 % |
|
| Cash and cash equivalents |
63.0 |
70.2 |
-10.2 % |
63.0 |
70.2 |
-10.2 % |
|
|
|
|
|
|
|
| Number of employees (end of period) |
1
045 |
1 032 |
1.3 % |
1 045 |
1 032 |
1.3 % |
| Number of employees (average) |
1
038 |
1 020 |
1.8 % |
1 035 |
1 007 |
2.8 % |
Revenue
- Revenues increased by 9.2 percent y-o-y
- Revenues from own consultants increased by 7.1 percent to NOK 234.7 million
- Revenues from sub-contracted consultants increased by 29.5 percent to NOK 35.2 million
- Other revenues increased by 0.4 percent to NOK 10.5 million
Revenue split (quarterly figures) MNOK
Revenue split (12 months rolling average)
Revenues from own consultants
- Increased 7.1 percent y-o-y
- Positive impact from increase in billing ratio by 2.6 percentage points
- Positive impact from 1.8 percent increase in average number of employees
- Positive impact from 0.3 percent increase in prices for group hourly services
- 66 workdays in Q3'16 equal to Q3'15
Revenue per employee (quarterly figures) TNOK
Revenue per employee (12 months rolling average)
Analysis of change in revenues y-o-y
Revenue MNOK
Change in revenues – effect on EBIT
Revenue MNOK
Earnings
- Operating profit increased y-o-y in Q3'16
- EBIT margin of 4.3 percent compared to 2.6 percent in Q3'15
- Operating expenses increased by 7.2 percent compared to Q3'15
- General growth in pay rate 1.9 percent y-o-y
- Other operating expenses increased 7.6 percent
EBIT and EBIT margin
MNOK and Percent
EBIT and EBIT margin (12 months rolling) MNOK and Percent
Cash flow
- Cash flow from operations
- Negative NOK 12.8 million in Q3'16 compared to negative NOK 0.8 million in Q3'15
- Rolling 12 months
- Operational cash flow over the last 12 months was NOK 94.8 million
- Cash flow from investing activities
- Negative NOK 4.8 million compared to negative NOK 3.0 million in Q3'15
Cash flow from operations (per quarter) MNOK
Cash flow from operations (LTM)
Outlook
Outlook
- Combination of technology trends will be the drivers of innovation
- Need of broad range of services and delivery models to execute digitalisation
- Rapid user adoption of digital services
Photo: http://wccftech.com
Shareholders as of 9.11.2016
| Investor |
Number of shares |
% of total |
| VARNER KAPITAL AS |
1 070 000 |
10,44 % |
| STENSHAGEN INVEST AS |
925 402 |
9,03 % |
| VPF NORDEA AVKASTNING |
776 120 |
7,57 % |
| PROTECTOR FORSIKRING ASA |
700 000 |
6,83 % |
| 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 % |
| STOREBRAND VEKST |
255 457 |
2,49 % |
| BOUVET ASA |
241 317 |
2,35 % |
| STUBØ ERIK |
236 752 |
2,31 % |
| STOREBRAND NORGE I |
211 289 |
2,06 % |
| DYVI INVEST AS |
200 000 |
1,95 % |
| TELENOR PENSJONSKASSE |
186 800 |
1,82 % |
| VOLLE ANDERS |
121 076 |
1,18 % |
| VERDIPAPIRFONDET STOREBRAND OPTIMA |
118 041 |
1,15 % |
| 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 % |
| TALLAKSRUD OLE-JØRGEN |
70 252 |
0,69 % |
| Number of shares held by the 20 largest shareholders |
7 243 719 |
70,66 % |