Bouvet

Investor Presentation • Feb 17, 2017

Interim presentation Fourth quarter 2016

Sverre Hurum. CEO Erik Stubø. CFO 17 February 2017

BERGEN KOMMUNE	Hva leter du etter?	$\alpha$	Min side
Aktuelt	Om kommunen	Tienestetilbud	Politikk	Ledige stillinger
c Forside < Om kommunen < Avdelinger < Byrådsavdeling for finans. innovasion og ejendom Byrådsavdeling for finans, innovasjon og eiendom Siste nytt $Om osc >UnderavdelingerKontakt$	Statsråd møtte kommunens digitale medarbeider Kommunal- og moderniseringsminister Jan Tore Sanner fikk møte Bergen kommunes første heldigitale medarbeider. Roboten "Digifrid" skal etter hvert få flere kolleger. Den ansvarlige statsråden for modernisering av offentlig sektor mette kommunens ansvarlige byråd for innovasjon, Dag Inge Ulstein tirsdag ettermiddag. Møtet fant sted hos Digitalisering og innovasjon konsern. Denne			Kontakt Byrådsavdeling for finans, Innovasion og eiendom Vis i kart (?) TIf: 05556 E-post: finans@bergen.kommune.no Kommunaldirektør: Tor Corneliussen Kommunaldirektør: Kristin Ulvang Vis mer »
	seksjonen er ansvarlig for å drive frem innovasjon i kommunen og tilby avdelingene et sett av verktøy de kan bruke i arbelde. med å digitalisere og modernisere tienestene. Ikke som på film Et nytt element i verktøykassen er den digitale medarbeideren. For dem som har forspist seg på science fiction, virker roboten	Kommunal- og moderniseringsminister Jan Tore Sanner (t.v.) besekte kommunens avdeling for Digitalisering og innovasjon. Statsråden ble tatt i mot av direktør Kietil Århus og byråd Dag Inge Ulstein, Under besøket fikk han se kommunens digitale medarbeider i arbeid. Bilde: blern vindenes	A Stort bilde	Politiske saker Følg med på hvilke saker som behandles: Politiske saker og spørsmålsregister (?)

Bergen kommune 12. januar 2017 Digi.no 9. februar 2017

nrk.no 11. januar 2017

Distriktsnyhetene Vestlandsrevyen NRK 11. januar 2017

AI and machine learning

• Artificial intelligence (AI) will play a more important role in digitalisation
• It is noted a marked shift towards interest in, and the need for, expertise on machine learning and AI
• Bouvet enhance service development to meet the market demand

dn.no

Highlights in the quarter

• Revenue and EBIT
• Operating revenues increased by 14.8 percent to NOK 382.3 million (y-o-y)
• EBIT increased by 26.0 percent to NOK 32.9 million (y-o-y)
• 1090 employees
• Up 45 from Q3'16
• An increase of 54 in the past 12 months
• Increased demand for robotic process automation (RPA)

Revenue and number of employees

MNOK and number

Operational Review

Increase in public sector

Business sectors Q4 2016

Sectors with high increase in revenue

• Public admin
• Increased by 27.3 percent (y-o-y)
• Represents 26.6 percent of total revenues in Q4'16
• Power supply
• Increased by 46.3 percent (y-o-y)
• Represents 10.0 percent of total revenues in Q4'16
• Transportation
• Increased by 19.0 percent (y-o-y)
• Represents 10.7 percent of total revenues in Q4'16
• Bank & finance
• Increased by 14.0 percent (y-o-y)
• Represents 4.3 percent of total revenues in Q4'16

Signed national frame agreement

• Important national framework agreement with Sykehusinnkjøp
• Includes a broad range of Bouvets services
• Duration up to 4 years

Finansavisen 5. desember 2017

Less "cracked eggs" by use of Big Data

• Digitalisation of egg control for Nortura making new data sets available to improve egg production
• Bouvet developed the egg control system and delivered Big Data services

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Assisted Sparebanken Vest going digital

• Sparebanken Vest digitalise to meet disruptive changes by:
• Optimizing customer experience
• Automating processes
• Upgrading technical platforms to meet future needs
• Bouvet is delivering
• Development services
• Testing services

Bergens Tidende

Digitalisation of BarentsWatch services

• Development and maintenance of information services for utilization of resources in the sea
• The objective is to:
• Increase safety
• Reduce conflicts
• Increased health for farmed fish
• Increased efficiency for fishers
• Increased collaboration between public organisations
• Open data
• 4 year contract (2013 2017)
• Estimated value 40 million NOK

Archive photo: Linn Røkenes/Norwegian Seafood Council

Customer and project mix

• Project mix
• Variable contracts account for 95.8 percent of total revenues
• Client portfolio
• The 10 largest customers represent 35.0 percent of total revenues – down from 37.0 percent in Q4'15
• The 20 largest customers represent 47.3 percent of total revenues – down from 48.7 percent in Q4'15

Variably priced contracts share of revenues Percentage

10 largest customers share of revenues Percentage

Client development

• Existing clients*
• Accounted for 87.8 percent of revenues in Q4'16
• New customers**
• Customers won over the past year generated revenues of NOK 46.3 million in Q4'16

* 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

• 1 090 employees at the end of the third quarter
• Up 45 from Q3'16
• 54 more employees in the past 12 months
• Average number of employees in the quarter up 5.2 percent from Q4'15

Number of employees end of quarter

Annual growth in number of employees Percentage

Strong focus on recruitment

• Enhance employer branding in all regions
• Presence at universities and conferences

Financial Review

Key figures

		Three months ending	Twelve months ending
MNOK	31.12.2016	31.12.2015	Change	31.12.2016	31.12.2015	Change
Operating revenue	382.3	333.0	14.8 %	1 330.8	1 232.5	8.0 %
Operating profit (EBIT)	32.9	26.1	26.0 %	106.3	99.4	7.0 %
EBIT margin	8.6 %	7.8 %		8.0 %	8.1 %
Ordinary profit before tax	33.2	27.1	22.7 %	106.0	101.8	4.2 %
Profit for the period	26.3	20.7	27.3 %	79.9	74.7	6.9 %
EPS (fully diluted)	2.54	1.98	28.0 %	7.66	7.12	7.5 %
Net cash flow operations	118.4	99.8	18.7 %	113.5	127.9	-11.3 %
Equity ratio	32.9 %	35.9 %		32.9 %	35.9 %
Cash and cash equivalents	165.9	174.3	-4.8 %	165.9	174.3	-4.8 %
Number of employees (end of period)	1 090	1 036	5.2 %	1 090	1 036	5.2 %
Number of employees (average)	1 087	1 033	5.2 %	1 050	1 016	3.3 %

Revenue

• Revenues increased by 14.8 percent y-o-y
• Revenues from own consultants increased by 11.2 percent to NOK 310.9 million
• Revenues from sub-contracted consultants increased by 67.7 percent to NOK 55.6 million
• Other revenues decreased by 22.1 percent to NOK 15.8 million

Revenue split (quarterly figures) MNOK

Revenue split (12 months rolling average)

Revenues from own consultants

• Increased 11.2 percent y-o-y
• Positive impact from increase in billing ratio by 1.9 percentage points
• Positive impact from 5.2 percent increase in average number of employees
• Positive impact from 0.8 percent increase in prices for group hourly services
• 64 workdays in Q4'16 one more than Q4'15

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 Q4'16
• EBIT margin of 8.6 percent compared to 7.8 percent in Q4'15
• Operating expenses increased by 13.8 percent compared to Q4'15
• General growth in pay rate 1.9 percent y-o-y
• Other operating expenses increased 9.7 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 118.4 million in Q4'16 compared to NOK 99.8 million in Q4'15
• Rolling 12 months
• Operational cash flow over the last 12 months was NOK 113.5 million
• Cash flow from investing activities
• Negative NOK 24.0 million compared to negative NOK 3.3 million in Q4'15

Cash flow from operations (per quarter) MNOK

Cash flow from operations (LTM)

Outlook

Outlook

• Industry shift from "offshoring" to "homeshoring"
• Increase in demand and interest of AI, Big Data, cloud and software robots
• The high pace of digitalisation continues

Shareholders as of 16.02.2017

Investor	Number of shares	% of total
VARNER KAPITAL AS	1 070 000	10,44 %
STENSHAGEN INVEST AS	925 402	9,03 %
VPF NORDEA AVKASTNING	778 120	7,59 %
PROTECTOR FORSIKRING ASA	700 000	6,83 %
MP PENSJON PK	569 904	5,56 %
HURUM SVERRE FINN	507 873	4,95 %
VEVLEN GÅRD AS	420 000	4,10 %
SIX SIS AG	400 000	3,90 %
STOREBRAND VEKST VERDIPAPIRFOND	271 769	2,65 %
STUBØ ERIK	237 373	2,32 %
STOREBRAND NORGE I VERDIPAPIRFOND	211 289	2,06 %
DYVI INVEST AS	200 000	1,95 %
TELENOR PENSJONSKASSE	186 800	1,82 %
VERDIPAPIRFONDET STOREBRAND OPTIMA	123 841	1,21 %
VOLLE ANDERS	121 697	1,19 %
BOUVET ASA	98 682	0,96 %
J.P. MORGAN CHASE BANK N.A. LONDON	90 645	0,88 %
RADIG NILS-HÅKAN	79 754	0,78 %
SVENDSEN PAUL HALLAN	74 368	0,73 %
TALLAKSRUD OLE-JØRGEN	70 873	0,69 %
Number of shares held by the 20 largest shareholders	7 138 390	69,64 %