Bouvet — Interim / Quarterly Report 2016

Nov 10, 2016

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 %