Interim presentation Fourth quarter 2019

Sverre Hurum, CEO Erik Stubø, CFO 25 February 2020

#bouvetdeler

Breakfast seminars

Universum Professional Survey and YPAI 2019

universum					Solutions Rankings Insights About Careers Rebearthe Legin Q
	0-0-1 06 0 0 0 0 IT			2017 2018 2019
	1 Google
	2 Microsoft
	3 FINN.no -
	4 Toutubility
	5 CNB
	ಹ Telenut
	6 Bouvet
	0 EVRY
	9 Forsvares
	10 Sopra Sterla

Selskap	YPAI	Rykte	Fremgang	VII Jobbe der 64.4
1. Google	65,1	63,6	67.4
2. Tesla	61.4	50.8	70.8	62.5
3. Microsoft	60,8	57,3	59,3	65,7
4, Finn.no	60.4	53,8	67.1	60.4
5. Yara	59.4	55,7	57	65,6
6. SINTEF	58,3	58,9	54.4	61,7
7. Apple	57,8	53,3	60.2	59.8
8. DNB	57,5	55.4	58.8	ല്ല 3
9. PWC	57,5	55,4	55.8	61,3
10. Bouvet	57,2	ട്.ഒ.ഒ	54.6	58.3

Highlights in the quarter

o Revenue and EBIT

• Operating revenues increased by 9.9 percent to NOK 588.5 million (y‐o‐y)
• EBIT increased by 9.5 percent to NOK 71.4 million (y‐o‐y)
o 1 557 employees
- • Up 12 from Q3'19
- • An increase of 188 in the past 12 months
o Dividend NOK 16.50 per share

Revenue and number of employees MNOK and number

Bouvet's vision

We lead the way and build tomorrow's society

Bouvet's ambition

We will be the most credible consultancy with the most satisfied employees and clients

Long‐term goals

Best workplace

Client‐oriented and long‐term relations

Successful business

Operational Review

Public and private sector

Business sectors Q4 2019

Sectors with high increase in revenue

o Oil & gas

• Increased by 24.9 percent (y‐o‐y)
• Represents 28.6 percent of total revenues in Q4'19

o Retail

• Increased by 17.3 percent (y‐o‐y)
• Represents 6 percent of total revenues in Q4'19

o Industry

• Increased by 26.6 percent (y‐o‐y)
• Represents 4.5 percent of total revenues in Q4'19

o Info and communication

• Increased by 23.1 percent (y‐o‐y)
• Represents 4 percent of total revenues in Q4'19

New agreement with Svenska Kraftnät and Fifty

o Svenska Kraftnät has trusted Bouvet to strengthen deliveries within:
- • Project management
- • Enterprise architecture (EA)
- • Solution architecture
o The contract has a value of approximately 6,2 MNOK and extends throughout 2019

BKK has signed an analytics agreement with Bouvet

o BKK have decided to build a company wide analytics platform to enable analytics to drive innovation in the entire BKK group
o Bouvet is chosen to be their analytics partner
o The duration of the agreement is up to 4 years
o Bouvet provide resources to help:
- • Build an analytics platform in Azure
- • Build capabilities to enable the foundations of machine learning and artificial intelligence

Bouvet training 2019

o More than 5 500 participants attended 420 courses (1 ‐ 5 days each)
o 40% of revenue was customer specific training
o 15 breakfast seminars with over 1300 participants in total

Customer and project mix

o Project mix
- • Variable contracts account for 98.3 percent of total revenues
o Customer portfolio
- • The 10 largest customers represent 41.5 percent of total revenues – up from 36.3 percent in Q4'18
- • The 20 largest customers represent 51.7 percent of total revenues – up from 49.3 percent in Q4'18

Variably priced contracts share of revenues Percentage

Customer development

o Existing customers*

• Accounted for 94.3 percent of revenues in Q4'19
oNew customers**

• Customers won over the past year generated revenues of NOK 33.7 million in Q4'19

Q4'18

Q4'19

Enthusiastic and competent employees

o 1 557 employees at the end of the quarter
- • Up 12 from Q3'19
- • 188 more employees in the past 12 months
- • Average number of employees in the quarter up 13.7 percent from Q4'18

2000

Annual growth in number of employees

Financial Review

Key figures

	T hre t hs d ing e mo n e n			Tw lve t hs d ing e mo n e n
M N O K	3 1. 1 2. 2 0 1 9	3 1. 1 2. 2 0 1 8	C ha ng e	3 1. 1 2. 2 0 1 9	3 1. 1 2. 2 0 1 8	C ha ng e
Op ing t era re ve nu e	8 8. 5 5	3 4 5 5.	9. 9 %	2 1 3 2. 1	1 8 4 6. 7	1 % 5. 5
( ) ing f i Op E B I T t t era p ro	7 1. 4	6 5. 2	9. 5 %	2 3 2. 1	1 9 1. 6	2 1. 1 %
E B I T m in arg	% 1 2. 1	% 1 2. 2		% 1 0. 9	% 1 0. 4
d f be for Or ina i t tax ry p ro e	6 7. 3	6 6. 3	1. 5 %	2 2 8. 2	1 9 1. 6	1 9. 1 %
f i for he io d Pro t t p er	5 4. 6	5 3. 5	2. 0 %	1 8 0. 1	1 5 0. 5	1 9. 7 %

( fu l ly d lu d ) E P S i te	5. 2 9	5. 2 1	1. 5 %	1 7. 4 4	1 4. 6 6	1 9. 0 %
f h low ion Ne t c t as op era s	2 2 9. 8	2 1 5. 9	% 6. 4	2 7 7. 1	2 1 9. 0	% 2 6. 5

Eq i io ty t ra u	2 9. 4 %	3 6. 6 %		2 9. 4 %	3 6. 6 %
h a d c h e iva len Ca ts s n as q u	3 4 4. 7	2 7 8. 4	2 3. 8 %	3 4 4. 7	2 7 8. 4	2 3. 8 %

be f e loy ( d o f p d ) Nu io m r o mp ee s en er	1 5 5 7	1 3 6 9	1 3. 7 %	1 5 5 7	1 3 6 9	1 3. 7 %
( ) be f e loy Nu m r o mp ee s ave rag e	1 5 4 9	1 3 6 2	1 3. 7 %	1 4 7 4	1 3 0 5	1 2. 9 %

Revenue

o Revenues increased by 9.9 percent y‐o‐y
- • Revenues from own consultants increased by 11.6 percent to NOK 491.4 million
- • Revenues from sub‐contracted consultants increased by 9 percent to NOK 76.9 million
- • Other revenues decreased by 17.7 percent to NOK 20.2 million

Revenue split (quarterly figures) MNOK

Revenues from own consultants

o Increased 11.6 percent y‐o‐y
- • Positive impact from 13.7 percent increase in average number of employees
- • Positive impact from 5.1 percent increase in prices for group hourly services
- • Negative impact from decrease in billing ratio by 3.5 percentage points
- • 62 workdays in Q4'19 – equal to Q4'18

Revenue per employee (quarterly figures) 0 100 200 300 400 Q4'15 Q4'16 Q4'17 Q4'18 Q4'19 TNOK

Revenue per employee (LTM)

TNOK

Analysis of change in revenues y‐o‐y

Earnings

o Operating profit (EBIT) increased by 9.5 percent to NOK 71.4 million
o EBIT margin of 12.1 percent compared to 12.2 percent in Q4'18
o Operating expenses increased by 10 percent y‐o‐y
o General growth in pay rate 1.8 percent y‐o‐y

EBIT and EBIT margin MNOK and Percent

EBIT and EBIT margin (LTM)

MNOK and Percent

Change in revenues – effect on EBIT

Cash flow

o Cash flow from operations

• NOK 229.8 million in Q4'19 compared to NOK 215.9 million in Q4'18
o Last 12 months
- • Operational cash flow over the last 12 months was NOK 277.1 million
o Cash flow from investing activities
- • Negative NOK 4.9 million compared to negative NOK 9.9 million in Q4'18

MNOK Cash flow from operations (per quarter)

Cash flow from operations (LTM) MNOK

Outlook

o Global uncertainty
o Rapid change in society and customer behaviour
o High demand for system development
o Moving from projects to products
o Increased demand for platform, cloud, AI/ML and security
o Increased demand for service design and change management
o Sustainability will have an increasing impact

Shareholders as of 25.02.2020

ha ho l d S re e rs	b f s ha Nu m e r o re s	f l % t t o o a
V A R N E R K A P I T A L A S	1 0 7 0 0 0 0	1 0, 4 4 %
l l l‐ V ir K A R In ion Sm Ca tu te t s rna a a p	1 0 4 8 4 2 7	1 0, 2 3 %
S T E N S H A G E N I N V E S T A S	5 8 6 6 9 9	5, 7 2 %
S V E R R E H U R U M	4 6 2 0 6 8	4, 5 1 %
Å V V L G A S E E N R D	4 3 0 2 5 5	4, 4 2 %
O O S G V E R D I P A P I R F N D E T N R D E A A V K A T N I N	3 0 0 0 7 5	3, 6 % 1
M P P E N S J O N P K	2 7 0 0 8 2	% 2, 6 3
V E R D I P A P I R F O N D O D I N N O R D E N	2 4 2 0 6 8	% 2, 3 6
Ø E R I K S T U B	2 3 8 5 6 8	2, 3 3 %
lan d U B S Sw i A G tze r	2 0 3 9 0 3	1, 9 9 %
V E R D I P A P I R F O N D E T N O R D E A K A P I T A L	1 6 6 3 4 0	1, 6 2 %
k a d S S Ba Tr Co ta te tre t t e n n us mp	1 5 5 8 7 9	1, 5 2 %
S O A O G I V I A I O T R E B R N D N R E E R D P P R F N D	1 4 0 1 2 7	1, 4 3 %
O S O S S S T E L E N R P E N J N K A E	3 0 0 0 0 1	2 % 1, 7
V E R D I P A P I R F O N D O D I N N O R G E	1 1 7 9 3 2	% 1, 1 5
A N D E R S E R I K S E N‐ V O L L E	1 1 6 4 4 0	1, 1 4 %
V E R D I P A P I R F O N D E T D N B S M B	9 0 6 6 3	0, 8 8 %
V E R D I P A P I R F O N D E T N O R D E A N O R G E P L U S	8 8 6 4 3	0, 8 6 %
E M P L O Y E E S R E T I R S Y S T E M O F T E X A S	8 2 4 0 0	0, 8 0 %
Å N I L S‐ H K A N R A D I G	7 5 2 6 1	0, 7 3 %
b f s ha he l by he la ha ho l d 2 0 d Nu t t m e r o re s rg e s s re e rs	6 8 9 2 1 1 5	9, 6 % 5 7

AI Terminal

Bouvet

3563_rns_2020-02-25_2516f5b8-a68f-472d-b9cc-c5f6115a821d.pdf