Interim presentation Third quarter 2014
Sverre Hurum. CEO Erik Stubø. CFO 12 November 2014
Highlights in the third quarter
- Revenues and EBIT
- Reduced revenues from Statoil
- Operating revenues decreased 2.7 percent to NOK 242.3 million (y-o-y)
- Loss of revenues replaced by other sectors
- EBIT down by 46.3 percent to NOK 9.2 million (y-o-y)
- 962 employees
- Up 17 in the quarter
- An increase of 46 in the past 12 months
Revenues and number of employees
MNOK and number
Changes in Oil and Gas
- Reduced revenues from Statoil
- Sales to Statoil decreased 41.2 percent from the same period of last year.
- Adjusted for Statoil the revenues from Oil & Gas increased by 7 percent
Revenues
Change in revenues (sector split) NOK million
Operational Review
Client development
- Existing clients*
- Accounted for 88.8 percent of revenues in Q3'14
- New customers**
- Customers won over the past year generated revenues of NOK 27.2 million in Q3'14
corresponding quarter last year
Customer and project mix
- Project mix
- Variable contracts account for 94.7 percent of total revenues
- Client portfolio
- The 10 largest customers represent 42.0 percent of total revenues – down from 54.5 percent in Q3'13
- The 20 largest customers represent 55.9 percent of total revenues – down from 67.7 percent in Q3'13
- The largest customer represents less than 14 percent
Variably priced contracts share of revenues Percentage
10 largest customers share of revenues Percentage
Range of Services
Growth within advisory
Security: An area of growth
Ordered data breach with itself
From the newspager Fædrelandsvennen, August 28,. 2014
Bouvet acquires Capgemini-office in Trondheim
- Expanding range of services and capacity
- Complimentary strategy:
- Capgemini aims for larger clients with offshoring component
- The regional strategy of Bouvet emphasize client proximity
Catching the wave: Former Capgemini employees together with new Bouvet colleagues
Agreement with 'The National Procurement Services' in Sweden
- In Sweden, central framework agreements are used for the purchase of consulting services throughout the public sector
- Bouvet has won framework agreements in one of five Swedish regions and has been nominated in two other regions
- May provide a solid base for growth for Bouvet in Sweden
Financial Review
Key figures
|
|
Three months ending |
|
Twelve
months ending |
|
|
| MNOK |
30.09.2014 |
30.09.2013 |
Change % |
30.09.2014 |
30.09.2013 |
Change % |
| Operating revenue |
242.3 |
249.1 |
-2.7 % |
1
117.7 |
1 095.0 |
2.1 % |
| Operating profit (EBIT) |
9.2 |
17.1 |
-46.3 % |
87.1 |
89.1 |
-2.2 % |
| EBIT margin |
3.8 % |
6.9 % |
|
7.8% |
8.1 % |
|
| Ordinary profit before tax |
9.4 |
17.5 |
-46.3 % |
89.1 |
91.0 |
-2.1 % |
| Profit for the period |
6.6 |
12.4 |
-47.2 % |
63.3 |
64.5 |
-1.8 % |
|
|
|
|
|
|
|
| EPS (fully diluted) |
0.61 |
1.21 |
-49.4
% |
6.13 |
6.25 |
-1.9 % |
| Net cash flow operations |
-14.0 |
20.5 |
N/A |
83.5 |
101.3 |
-17.5 % |
|
|
|
|
|
|
|
| Equity ratio |
38.0 % |
36.4 % |
|
38.0 % |
36.4 % |
|
| Cash and cash equivalents |
79.1 |
73.2 |
8.0 % |
79.1 |
73.2 |
8.0 % |
|
|
|
|
|
|
|
| Number of employees (end of period) |
962 |
916 |
5.0 % |
962 |
916 |
5.0 % |
| Number of employees (average) |
954 |
913 |
4.5 % |
940 |
893 |
5.2 % |
Statoil impacts revenues
- Revenues decreased by 2.7 percent y-o-y
- Revenues from own consultants increased by 0.4 percent to NOK 210.5 million
- Revenues from sub-contracted consultants reduced by 26.4 percent to NOK 22.9 million
- Sub-contracted consultants' share of revenues was 9.4 percent, down from 12.5 percent in Q3'13
- Billing rate decreased -5.3 percentage points from Q3'13
- Prices for group hourly services increased 2.6 percent from Q3'13
Revenue split (quarterly figures) MNOK
Revenue split (12 months rolling average) MNOK
Earnings under pressure
- Operating profit decreased y-o-y in Q3'14
- EBIT margin of 3.8 percent compared to 6.9 percent in Q3'13
- Operating expenses increased by 0.5 percent compared to Q3'13
- Other operating expenses increased 4.2 percent
- 66 workdays in Q3'14 equivalent to in Q3'13
EBIT and EBIT margin
MNOK and Percent
EBIT and EBIT margin (12 months rolling) MNOK and Percent
Cash flow reduced
- Cash flow from operations
- Negative NOK 14.0 million in Q3'14, down from NOK positive 20.5 million in Q3'13
- Rolling 12 months
- Operational cash flow over the last 12 months was NOK 83.5 million
Cash flow from operations (per quarter) MNOK
Cash flow from operations (LTM)
Outlook
Outlook and summary
- Sales to Statoil fell by 41.2 per cent
- Strengthened position within prioritized areas
- Continued trend on digitalization
- Increased competition will challenge profitability
- Strong adaptability opens for further growth and improved profitability in the long term
Appendix
Employees
- 962 employees at the end of the third quarter
- 17 new employees in Q3'14
- 46 new employees in the past 12 months
- Average number of employees in the quarter up 4.5 percent from Q3'13
Number of employees end of quarter
Annual growth in number of employees Percentage
Shareholders as of 10.11.2014
| Investor |
Number
of
shares |
% of
total |
| VARNER KAPITAL AS |
1 070 000 |
10.44 % |
| STENSHAGEN INVEST AS |
824 992 |
8.05 % |
| MP PENSJON PK |
669 904 |
6.54 % |
| HURUM SVERRE FINN |
505 751 |
4.93 % |
| KLP AKSJE NORGE VPF |
422 032 |
4.12 % |
| VEVLEN GÅRD AS |
300 000 |
2.93 % |
| VERDIPAPIRFONDET DNB NORDIC TECHNO |
298 659 |
2.91 % |
| KOMMUNAL LANDSPENSJONSKASSE |
294 600 |
2.87 % |
| STUBØ ERIK |
235 251 |
2.30 % |
| VERDIPAPIRFONDET HANDELSBANKEN |
220 000 |
2.15 % |
| VERDIPAPIRFONDET EIKA NORGE |
213 952 |
2.09 % |
| STOREBRAND NORGE I |
192 341 |
1.88 % |
| J.P. MORGAN CHASE BANK N.A. LONDON |
191 945 |
1.87 % |
| TELENOR PENSJONSKASSE |
186 800 |
1.82 % |
| BOUVET ASA |
179 356 |
1.75 % |
| DYVI INVEST AS |
150 000 |
1.46 % |
| STOREBRAND VEKST |
143 629 |
1.40 % |
| VERDIPAPIRFONDET DNB NORDEN (III) |
125 406 |
1.22 % |
| VERDIPAPIRFONDET DNB SMB |
123 600 |
1.21 % |
| VOLLE ANDERS |
118 075 |
1.15 % |
Number of
shares held by the 20 largest shareholders |
6 466 293 |
63.09 % |