Bouvet

Investor Presentation • May 20, 2021

Interim presentation First quarter 2021

20 May 2021

Per Gunnar Tronsli, CEO Erik Stubø, CFO

Highlights in the quarter

• Revenue and EBIT

• Operating revenues increased by 8.5 percent to NOK 695.9 million (y-o-y)
• EBIT increased by 10 percent to NOK 90.8 million (y-o-y)

• 1 684 employees

• Up 28 from Q4'20
• An increase of 109 in the past 12 months

Revenue and number of employees

MNOK and number

Bouvet's vision

We lead the way and build tomorrow's society

Long-term goals

Client-oriented and

The Covid-19 shutdown anniversary was marked with a virtual festive take-away dinner for all employees. A helping hand to a restaurant sector which has been much harder hit than our own industry

The purpose of GoForIT is to create an arena for collaboration between academia and ICT industry to discuss, develop and influence the content of educational programmes on IT, technology and innovation in a sustainable direction

Therese Lindblom, manager for the customer experience area in the eastern region, was named one of Norway's 50 leading women at Tech 2021 by Abelia and the Oda Network direction

Operational Review

Public and private sector

Business sectors Q1 2021

A tribute to Norwegian veterans

• Over 100 000 Norwegian women and men have served in international operations since the end of World War 2
• This website allows veterans to tell their stories, with over 400 accounts of armed conflict, of saving lives and protecting innocents.
• Bouvet´s deliveries:
  • Implement website
  • Security- and penetration testing
  • Technical project management

Designing a new energy service

• BKK Strøm used a design approach when developing a new energy service for the business market
• Customers needed an improved understanding of their:
  • Electricity agreement
  • How they could control and reduce their electricity consumption
• Time of development
  • One month from prototype to new service and brand was launched

Supplier of IT services to Norwegian Public Roads Administration

• Transportation and roads are getting smarter, Bouvet is chosen as one of eight partners for delivering IT services
• Total estimated value 400 - 600 million NOK (including options)
• Bouvet´s deliveries:
  • System development and program management
  • Project management
  • Testing and test management
  • System maintenance
  • Publishing and content production

Photo: Statens vegvesen / Vianova / Baezeni

Bouvet training

• 40 % of revenue was customer specific training as:
  • Management development programme on digital leadership
  • The shift towards a more agile organisation
  • Contribute with competence and modules as part of customers own training programs
• More than 2 500 participants on breakfast seminars

The four largest sectors

• Oil & gas

• Increased by 9.6 percent (y-o-y)
• Represents 27.8 percent of total revenues in Q1'21

• Public admin

• Increased by 4.3 percent (y-o-y)
• Represents 24.3 percent of total revenues in Q1'21

• Power supply

• Increased by 46.7 percent (y-o-y)
• Represents 17.3 percent of total revenues in Q1'21

• Transportation

• Increased by 6 percent (y-o-y)
• Represents 5.6 percent of total revenues in Q1'21

Customer and project mix

• Project mix

• Variable contracts account for 98.9 percent of total revenues
• Customer portfolio
  • The 10 largest customers represent 49.6 percent of total revenues – up from 42.8 percent in Q1'20
  • The 20 largest customers represent 58.2 percent of total revenues – up from 53.6 percent in Q1'20

Customer development

Existing customers* New customers (LTM)** • Existing customers* • Accounted for 95.4 percent of revenues in • New customers** • Customers won over the past year generated revenues of NOK 32 million in

Q1'21

Q1'21

Revenue customer split

MNOK

Enthusiastic and competent employees

• 1 684 employees at the end of the quarter

• Up 28 from Q4'20
• 109 more employees in the past 12 months
• Average number of employees in the quarter up 6.8 percent from Q1'20

Number of employees end of quarter

Annual growth in number of employees

Financial Review

Key figures

	Three months ending			Twelve months ending
MNOK	31.03.2021	31.03.2020	Change	31.03.2021	31.03.2020	Change
Operating revenue	695.9	641.2	8.5 %	2 456.5	2 209.0	11.2 %
Operating profit (EBIT)	90.8	82.6	10.0 %	322.8	245.8	31.3 %
EBIT margin	13.1 %	12.9 %		13.1 %	11.1 %
Ordinary profit before tax	89.2	83.2	7.3 %	317.8	242.9	30.9 %
Profit for the period	69.4	64.7	7.4 %	246.0	191.4	28.5 %
EPS (fully diluted)	6.67	6.24	6.9 %	23.70	18.51	28.0 %
Net cash flow operations	21.5	47.1	-54.3 %	425.3	319.9	32.9 %
Equity ratio	34.0 %	31.1 %		34.0 %	31.1 %
Liquid assets	579.3	372.0	55.7 %	579.3	372.0	55.7 %
Number of employees (end of period)	1 684	1 575	6.9 %	1 684	1 575	6.9 %
Number of employees (average)	1 676	1 569	6.8 %	1 636	1 517	7.8 %

Revenue Revenue split (quarterly figures)

• Revenues increased by 8.5 percent y-o-y

• Revenues from own consultants increased by 8 percent to NOK 588.4 million
• Revenues from sub-contracted consultants increased by 10.6 percent to NOK 86.6 million
• Other revenues increased by 14.1 percent to NOK 20.9 million

MNOK

Revenue split (12 months rolling average) MNOK

Revenues from own consultants

• Increased 8 percent y-o-y

• Positive impact from 6.8 percent increase in average number of employees
• Price for group hourly services is equal to Q1'20
• Positive impact from increase in billing ratio by 0.9 percentage points
• 63 workdays in Q1'21 one less than Q1'20

TNOK

Analysis of change in revenues y-o-y

Earnings

• EBIT EBIT margin Operating profit (EBIT) increased by 10 percent to NOK 90.8 million
• EBIT margin of 13.1 percent compared to 12.9 percent in Q1'20
• Operating expenses increased by 8.3 percent y-o-y
• General growth in pay rate 3.2 percent y-o-y
• Covid-19 effects
  • Positiv impact from reduced costs related to travel, courses, conferences and social events - NOK 6.3 million 0%

EBIT and EBIT margin (LTM) MNOK and Percent

Change in revenues – effect on EBIT

Cash flow

• Cash flow from operations

• NOK 21.5 million in Q1'21 compared to NOK 47.1 million in Q1'20

• Cash flow last 12 months

• Operational cash flow over the last 12 months was NOK 425.3 million

• Cash flow from investing activities

• Negative NOK 7.6 million compared to negative NOK 10 million in Q1'20
• Proposed dividend NOK 22.00 per share

MNOK Cash flow from operations (per quarter)

Cash flow from operations (LTM) MNOK

Outlook

Outlook summary

• Workday post-covid
• Focus on digital transformation
  • Public sector
  • Energy sector
  • Oil and gas sector
• From project to product development
  • High demand for cross-functional teams
• High demand for
  • Cloud and platform services
  • Security
  • Agile development
  • Digital collaboration
• High focus on recruitment

Appendix

Shareholders as of 20.05.2021

Shareholders	Number of shares	% of total
FOLKETRYGDFONDET	754 930	7,34 %
The Bank of New York Mellon	750 682	7,30 %
VARNER KAPITAL AS	659 100	6,41 %
STENSHAGEN INVEST AS	536 699	5,22 %
VERDIPAPIRFOND ODIN NORDEN	451 215	4,39 %
SVERRE FINN HURUM	387 125	3,76 %
VERDIPAPIRFONDET NORDEA AVKASTNING	282 370	2,75 %
MP PENSJON PK	265 082	2,58 %
ERIK STUBØ	205 292	2,00 %
VERDIPAPIRFONDET NORDEA KAPITAL	199 729	1,94 %
VERDIPAPIRFONDET FIRST VERITAS	179 348	1,74 %
UBS Switzerland AG	177 980	1,73 %
VEVLEN GÅRD AS	162 802	1,58 %
VERDIPAPIRFOND ODIN NORGE	127 057	1,24 %
VERDIPAPIRFONDET NORDEA NORGE PLUS	117 575	1,14 %
State Street Bank and Trust Comp	110 555	1,07 %
ANDERS ERIKSEN-VOLLE	99 830	0,97 %
SMALLCAP WORLD FUND INC	90 700	0,88 %
TELENOR PENSJONSKASSE	90 000	0,87 %
VERDIPAPIRFONDET KLP AKSJENORGE INDEKS	85 593	0,83 %
Number of shares held by the 20 largest shareholders	5 733 664	55,74 %