Bouvet

Investor Presentation • May 12, 2016

Interim presentation First quarter 2016

Sverre Hurum. CEO Erik Stubø. CFO 12 May 2016

Highlights in the quarter

• Revenues and EBIT
• Operating revenues declined by 1.2 percent to NOK 322.9 million (y-o-y)
• EBIT declined by 36.5 percent to NOK 20.3 million (y-o-y)
• 1036 employees
• Equal to Q4'15
• An increase of 36 in the past 12 months
• The pace of digital transformation is accelerating
• Change of user expectations make the need of rapid technology advancement

Revenues and number of employees

MNOK and number

Operational Review

Increase in public sector

Business sectors Q1 2016

Sectors with high increase in revenue

• Public admin
• Increased by 40.0 percent (y-o-y)
• Represents 23.9 percent of total revenue in Q1'16
• Transportation
• Increased by 21.7 percent (y-o-y)
• Represents 10.4 percent of total revenue in Q1'16
• Health
• Increased by 27.8 percent (y-o-y)
• Represents 5.2 percent of total revenue in Q1'16
• Bank and finance
• Increased by 57.2 percent (y-o-y)
• Represents 4.8 percent of total revenue in Q1'16

Air Control for Northern Europe

• Air Command and Control system for NATO
• Planning, reporting, execution
• Operational and tactical level
• Used by NATO Airborne Early Warning and Control Force
• Frame agreement
• Development and upgrade of NEC CCIS
• 2016 + 3 years

Kilde: https://www.ssc.nato.int/

From manual to digital inspections

• New mobile inspection solution for Engie
• Real-time data
• Increased number of inspections
• Annual reduced cost estimated to 5-10 millions NOK at Gjøa platform
• Bouvet owns the software

Kilde: tu.no

Reduced cost by understanding customer needs

• Viasat challenged Bouvet to reduce number of giveaways at the customer service
• Bouvet developed an IoT which reward collective actions
• 51% cost reduction after three weeks

Customer and project mix

• Project mix
• Variable contracts account for 95.6 percent of total revenues
• Client portfolio
• The 10 largest customers represent 35.2 percent of total revenues – down from 39.3 percent in Q1'15
• The 20 largest customers represent 47.4 percent of total revenues – down from 52.5 percent in Q1'15

Variably priced contracts share of revenues Percentage

10 largest customers share of revenues Percentage

Client development

• Existing clients*
• Accounted for 87.5 percent of revenues in Q1'16
• New customers**
• Customer won over the past year generated revenues of NOK 40.4 million in Q1'16

* 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

Revenues customer split MNOK

Enthusiastic and competent employees

• 1 036 employees at the end of the first quarter
• Equal to Q4'15
• 36 more employees in the past 12 months
• Average number of employees in the quarter up 3.0 percent from Q1'15

Number of employees end of quarter

Annual growth in number of employees Percentage

Improved score at Great Place to Work

Financial Review

Key figures

	Three months ending			Twelve months ending
MNOK	31.03.2016	31.03.2015	Change	31.03.2016	31.03.2015	Change
Operating revenue	322.9	327.0	-1.2 %	1 228.4	1 158.7	6.0 %
Operating profit (EBIT)	20.3	32.0	-36.5 %	87.7	84.2	4.1 %
EBIT margin	6.3 %	9.8 %		7.1 %	7.3 %
Ordinary profit before tax	20.5	32.2	-36.5 %	89.6	86.3	3.9 %
Profit for the period	14.5	24.4	-40.5 %	64.3	62.2	3.4 %
EPS (fully diluted)	1.38	2.32	-40.4 %	6.21	6.01	3.5 %
Net cash flow operations	-17.0	0.3	N/A	110.6	65.9	67.8 %
Equity ratio	38.3 %	37.2 %		38.3 %	37.2 %
Cash and cash equivalents	152.5	115.8	31.7 %	152.5	115.8	31.7 %
Number of employees (end of period)	1 036	1 000	3.6 %	1 036	1 000	3.6 %
Number of employees (average)	1 033	1 003	3.0 %	1 024	975	5.1 %

Revenues

• Revenues declined by 1.2 percent y-o-y
• Revenues from own consultants declined by 3.3 percent to NOK 273.0 million
• Revenues from sub-contracted consultants increased by 26.2 percent to NOK 38.1 million
• Other revenues declined by 19.1 percent to NOK 11.8 million

Revenue split (quarterly figures) MNOK

Revenue split (12 months rolling average) MNOK

Revenues from own consultants

• Declined 3.3 percent y-o-y
• 61 workdays in Q1'16 two less than Q1'15
• Negative impact from decline in billing ratio by 2.0 percentage points
• Positive impact from 3.0 percent increase in average number of employees
• Positive impact from 0.8 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 declined y-o-y in Q1'16
• EBIT margin of 6.3 percent compared to 9.8 percent in Q1'15
• Operating expenses increased by 2.6 percent compared to Q1'15
• General growth in pay rate 1.9 percent y-o-y
• Other operating expenses declined 0.5 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 -17.0 million in Q1'16, down from NOK 0.3 million in Q1'15
• Rolling 12 months
• Operational cash flow over the last 12 months was NOK 110.6 million
• Cash flow from investing activities
• Negative NOK 4.9 million compared to negative NOK 3.1 million in Q1'15

Cash flow from operations (per quarter) MNOK

Cash flow from operations (LTM)

Outlook

Outlook

• Increase in demand for DevOps and Lean Startup services
• Major industry shift driven by technology and customer behaviour
• Our services and way of collaboration enable our customer to deliver and capture value

Shareholders as of 11.05.2016

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	800 000	7,80 %
MP PENSJON PK	569 904	5,56 %
HURUM SVERRE FINN	507 252	4,95 %
SIX SIS AG	400 000	3,90 %
VEVLEN GÅRD AS	400 000	3,90 %
STUBØ ERIK	236 752	2,31 %
EIKA NORGE	213 952	2,09 %
STOREBRAND NORGE I	211 289	2,06 %
DYVI INVEST AS	200 000	1,95 %
STOREBRAND VEKST	187 475	1,83 %
TELENOR PENSJONSKASSE	186 800	1,82 %
VERDIPAPIRFONDET KLP AKSJENORGE	158 624	1,55 %
VERDIPAPIRFONDET STOREBRAND OPTIMA	147 241	1,44 %
J.P.MORGAN CHASE BANK N.A. LONDON	127 641	1,25 %
VOLLE ANDERS	126 576	1,23 %
AAT INVEST AS	120 500	1,18 %
KOMMUNAL LANDSPENSJOSKASSE	111 579	1,09 %
RIISNÆS STEIN KRISTIAN	84 990	0,83 %
Number of shares held by the 20 largest shareholders	6 968 977	67,99 %