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Bouvet

Quarterly Report May 12, 2015

3563_rns_2015-05-12_602243f3-f393-4f9e-8c71-d3c959dc299a.pdf

Quarterly Report

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QUARTERLY REPORT Q115

About Bouvet

Bouvet provides services in the fields of information technology, digital communication and enterprise management. At 31 March, it had 1000 employees divided between 14 offices in Norway and Sweden.

The company is a strategic partner for a number of enterprises, helping them to shape digital solutions which create new business opportunities. Clients appreciate Bouvet's good grasp of their operations, and a broad range of services allows it to act as a turnkey supplier. Bouvet is committed to maintaining long-term client relationships.

Bouvet's regional model with local offices confers clear benefits in marketing work and competitiveness. Many enterprises consider it important that the supplier of business-critical systems has a local presence and expertise. This also makes it easier to establish a long-term relationship and thereby acquire knowledge of the client's business and systems.

As a result of its clear concentration on the principles for managing the business, Bouvet comes across as a solid, well-run and reputable company. In addition to its standards for delivering good solutions, the company sets strict requirements for ethics, conflicts of interest, security, openness and accountability. Bouvet's close relations with clients are possible because the company and its employees execute their assignments with a high degree of integrity.

Highlights of the first quarter 2015

  • · Operating revenues rose by 8.7 per cent from the same period of 2014 to NOK 327 million.
  • · Operating profit of NOK 32 million, up by 18.6 per cent from the first quarter of last year.
  • · Cash flow from operations of NOK 0.3 million, compared with a negative NOK 13.3 million in the same period of 2014.
  • · A number of new contracts won by Bouvet on the basis of its broad service scope and closeness to clients.
  • · Workforce at 31 March totalled 1000 people, down by 8 from 31 December and up by 68 from 31 March 2014.

Key figures

MILLIONS NOK JAN-MAR 2015 JAN-MAR 2014 CHANGE % YEAR 2014
Revenue 327.0 300.9 8.7 % 1 132.6
Operating profit (EBIT) 32.0 27.0 18.6 % 79.2
Ordinary profit before tax 32.2 27.5 17.1 % 81.6
Profit for the period 24.4 19.2 26.9 % 57.0
Net cash flow operations 0.3 -13.3 N/A 48.8
Cash and cash equivalents 115.8 144.8 -20.1 % 118.6
Number of employees (end of period) 1 000 932 7.3 % 1 008
Number of employees (average) 1 003 931 7.8 % 958
Earnings per share 2.35 1.86 26.6 % 5.45
Diluted earnings per share 2.32 1.84 26.5 % 5.39
EBIT margin 9.8 % 9.0 % 7.0 %
Equity ratio 37.2 % 38.7 % 34.3 %

Financial results

Operating revenues

Bouvet had operating revenues of NOK 327 million in the first quarter, compared with NOK 300.9 million in the same period of 2014. That represented an increase of 8.7 per cent. Rates for the group's hourly based services rose by 2.7 cent from the first quarter of last year. The billing ratio for the group's consultants declined by one per cent compared with the same period of 2014. Operating revenues from the sale of services from sub-contractors came to NOK 30.2 million, down by NOK 3.1 million from the first quarter of last year. The average number of employees increased by 7.8 per cent from the same period of 2014. Taken together, these developments contributed to an 8.7 per cent rise in operating revenues compared with the first quarter of 2014.

Sales to existing clients made good progress during the quarter. Clients who also used the group in the first quarter of 2014 accounted for 89 per cent of operating revenues. In addition, clients acquired since 31 March 2014 contributed a total of NOK 37.6 million to first-quarter operating revenues.

Bouvet's strategy is to use services from sub-contractors when it lacks the capacity to meet demand with its own personnel or when clients require leading-edge expertise outside the group's priority areas. The sub-contractor share of total revenues was 9.2 per cent in the first quarter, compared with 11.1 per cent in the same period of 2014. The group's long-term target is that this share should be about 15 per cent of total operating revenues.

Operating costs

Bouvet's operating costs, including depreciation and amortisation, were NOK 295 million for the first quarter, up from NOK 273.9 million in the same period of 2014. That represents an increase of 7.7 per cent. Payroll costs increased because the average number of employees rose, in addition to the general growth in pay rates. The group experienced a general rise in pay of 3.2 per cent over the past 12 months. The cost of sales came to NOK 36.3 million, unchanged from the first quarter of 2014, and primarily comprised procurement of sub-contractor services and the hire of course instructors.

Other operating costs rose by 1.7 per cent from the first quarter of 2014 to NOK 27.7 million. This increase of NOK 0.5 million primarily reflected a growth in costs associated with leasing premises.

Profit

Operating profit (EBIT) for the first quarter came to NOK 32 million, compared with NOK 27 million in the same period of 2014. That represents an increase of 18.6 per cent. The EBIT margin rose from nine per cent in the first quarter of 2014 to 9.8 per cent. Net profit came to NOK 24.4 million, compared with NOK 19.2 million in the same period of the year before. Diluted earnings per share were NOK 2.32, compared with NOK 1.84 in the first quarter of 2014.

Cash flow, liquidity and capital adequacy

Consolidated cash flow from operations was NOK 0.3 million in the first quarter, compared with a negative NOK 13.3 million in the same period of 2014. Cash flow in the quarter was affected negatively by an increase of NOK 38.4 million in working capital from the fourth quarter of 2014, related to client receivables, work in progress and other current receivables. Furthermore, cash flow was affected positively by an increase of NOK 10 million in current liabilities. Consolidated cash flow from operations over the past 12 months came to NOK 62.3 million, while net profit over the same period was NOK 62.2 million.

The group's client portfolio consists mainly of large, solid listed companies and public enterprises. No bad debts were suffered in the first quarter, and the group has good oversight and control of its receivables.

Bouvet has no interest-bearing debt. Bank deposits at 31 March totalled NOK 115.8 million, compared with NOK 144.8 million a year earlier. The group had an undrawn overdraft facility of NOK 50 million at 31 March. It held 19 688 of its own shares at 31 March. Equity at 31 March totalled NOK 179.5 million, representing an equity ratio of 37.2 per cent. The corresponding figures for 31 March 2014 were an equity of NOK 180.5 million and an equity ratio of 38.7 per cent.

REVENUES

EMPLOYEES (END OF PERIOD)

OPERATING PROFIT (EBIT)

NOK MILLION

Adjusted for the proposed dividend totalling NOK 51.3 million, which will be paid in the second quarter of 2015, the equity ratio was 29.7 per cent at 31 March. Bouvet's long-term target is to maintain an equity ratio in excess of 30 per cent.

Segment reporting

The group does not report internally by business areas or segments in an accounting sense. Its business is homogenous and pursued within the Nordic market for IT consultancy services. Risk and return are followed up at departmental level within homogenous consultancy departments with shared markets, on a project basis and per consultant. This does not provide a basis for segment reporting, which is accordingly not presented. Should changes be made to the group's business, the possibility that these changes might provide a basis for segment reporting will be assessed.

Developments and market

Demand for Bouvet's services is good and stable in Norway, and growing somewhat in Sweden.

Bouvet's turnover is highest in the oil and gas sector, where the company has tailored its range of services and increasingly delivers to the core processes of its clients. That means the decline in sales to clients in this industry has flattened out.

Clients are tending to take a more coherent approach to digitising their business – digital solutions have become important for business development in all sectors, an overall cross-channel view is being taken about the enterprise's communication and interaction with target groups, web and mobile solutions are being integrated with underlying systems, and security and infrastructure have become a strategic issue for many clients.

The level of activity in Bouvet is high, and the company has delivered solutions every single week during the quarter which create positive spin-offs for clients, individuals and society. Examples from the first quarter include the following.

• The Fiskinfo solution was launched by the minister of industry, trade and fisheries in February to provide fishermen with information directly from the authorities to their digital charts, which makes it easier to plan and execute fishing.

  • • The Statoil equipment and material information (Semi) system is an important tool for efficiency improvement efforts at the oil company. It handles standardised documentation for spare parts, chemicals and technical equipment. The first development to use this solution will be Johan Sverdrup.
  • • A new system which permits more efficient allocation of service routes has been delivered to Sporveien in Oslo.
  • • DNV GL can now provide a better customer experience through new global web pages.
  • • All Oslo's districts adopted the Fasit solution during the first quarter. This means employees of the Labour and Welfare Service (NAV) are better equipped to deal with social care issues in a good manner.
  • • A new mobile-adapted portal improves communication between the Rema 1000 chain and its storekeepers.
  • • Launched in January, a new website for the Norwegian armed forces simplifies navigation of the information for the 130 000 conscripts called up for national service every year.
  • • TV2's new solution for news tips make it easier for the TV company to handle the stories received.

Regional developments

Eastern region

ARENDAL SANDEFJORD KRISTIANSAND SKIEN Goof growth and profitability were achieved by the eastern region during the quarter. Expertise in business development, combined with in-depth technological understanding and knowledge of digital customer experi-

ÖREBRO ences, means that Bouvet wins many contracts. A case in point is Vinmonopolet (the Norwegian Wine and Spirit Monopoly), where Bouvet has secured the job of designing and developing its new platform for e-commerce across all channels. Vinmonopolet is already a major Bouvet client for business systems.

MALMÖ Two large assignments related to administration and further development of public-sector administrative systems have been secured by Bouvet's eastern region. These relate to a change of screen technology for the systems used by the State Agency for the Recovery of Fines, Damages and Costs, and management and further development of the City of Oslo's social care system. Other long-standing clients who have shown renewed confidence in Bouvet are the Norwegian Directorate for Education and Training, the armed forces, Color Line, Avinor, Sporveien, the Norwegian State Housing Bank and Statnett.

Elhub is intended to become the central data hub for metering information and market processes in the Norwegian power market. Consultants from Bouvet have been allocated a number of roles on the client side of this project. The company is also supporting Hafslund's preparations for a new intelligent meter reading system.

Bouvet is supporting the Coop with both e-commerce and interactive solutions, and this client expanded these assignments during the quarter.

The police intend to develop a new intranet to improve internal information flow. Bouvet won the competitive tender for this job during the first quarter. The contract was signed after 31 March.

Frame agreements are important for Bouvet, and it secured a deal of this kind during the quarter from Ruter covering strategy and management, ICT projects, testing and test management, and ICT operation and administration. The agreement runs for two years with options for two one-year extensions.

In addition, Bouvet has won new assignments for advice, infrastructure, security, social media, development of digital content, mobile solutions, customer journeys and advertising.

Rogaland region

Bouvet is winning an increased share of a market in Rogaland characterised by tougher competition and pressure on prices. In the oil and gas sector, it is now working a lot with core business

processes and solutions. This represents an area where clients prefer Bouvet's knowledge of the industry. In addition, activity in the public sector, health care and energy industry is growing for the Rogaland region.

The company has long delivered good solutions for life cycle information (LCI) and management systems. During the quarter, Statoil awarded Bouvet an enterprise contract within an adjacent area. This assignment relates to the oil company's 3D global workshare solution, and means that Bouvet will maintain the global 3D portal for the client's land-based and offshore installations. One of its main jobs is to serve as the global administrator for Statoil's plant design management system, a 3D computer-aided design (CAD) tool developed by Aveva. These are services normally delivered by engineering companies.

Bouvet's commitment to ready-to-use integration concepts based on Microsoft BizTalk proved a big success during the quarter. A number of new contracts covering the combination of planning, developing, implementing and administering this type of solution were secured. New clients in this area are Det Norske Oljeselskap, Eidsiva and the Norwegian National Rail Administration.

The same progress was experienced in the business intelligence area, where Bouvet delivers for most platforms. New, efficient tools combined with cloud services creates new opportunities in this area. Bouvet is involved, in a good partnership with Microsoft, in projects with Lyse, the City of Stavanger, the Western Norway Regional Health Authority and the University of Stavanger. HAUGESUND STAVANGER FORUS BERGEN

A number of long-standing clients commissioned new work from Bouvet during the quarter. These include Lyse, the Western Norway Regional Health Authority, Det Norske Oljeselskap, Statoil and ENI. Add Energy and Eidsiva became new clients during the period.

The Olavstoppen subsidiary delivers digital communication services in Rogaland. Its results are good, and a number of new assignments were secured during the quarter. ARENDAL SANDEFJORD KRISTIANSAND

Northern region

Demand is good in the northern region for most of Bouvet's services.

STOCKHOLM MALMÖ Barentswatch/the Norwegian Coastal Administration is among the largest clients the region. During the quarter, it

commissioned further administration of the systems developed by Bouvet.

Turnover for the company in the health sector is growing both nationally and in the northern region. A frame agreement for system development was secured during the quarter from the Norwegian Health Network.

The Norwegian Patient Registry also awarded a project management assignment. SANDVIKA

Bouvet's involvement with Det Norske Oljeselskap was expanded during the quarter. Statoil also extended a number of assignments.

Service design is an expertise in growing demand, and Bouvet secured an assignment to design customer journeys for the City of Trondheim's urban development department. This involves mapping and design of analogue and digital contact points between users and the enterprise. TRONDHEIM

The Norwegian Environment Agency, the Norwegian University of Science and Technology and the Brønnøysund Register Centre are other clients who showed renewed confidence in Bouvet during the quarter.

Bergen region

Bouvet has a high level of activity in Bergen, with good demand for its services. The City of Bergen is one of the largest clients in the region, and placed an order during the quarter to extend the contract for the company's team.

ARENDAL SANDEFJORD KRISTIANSAND SKIEN Statoil purchases services within a number of disciplines in the region, including design of work processes and administration of the company's management system. During the quarter, this client also commissioned further development of the solution which conveys environmental data from the seabed off Vesterålen.

ÖREBRO Information security has been an important service area for Bouvet in Bergen over a number of years, and TV2 has now commissioned courses in this area for many of its employees. A number of assignments have also been won to conduct security audits for clients in the banking/finance sector. BERGEN

Southern region

The southern region is characterised by stable long-term client relations. Certain clients in the supplies industry are more hesitant than before.

Implementation of interactive solutions

is the one of the services Bouvet delivers in the region. Both Elopak and Hesnes Shipping awarded assignments in this area during the quarter.

ÖREBRO STOCKHOLM MALMÖ The Archive Foundation in Kristiansand is to document the history of 40 000 Norwegian seafarers in wartime. Bouvet has been commissioned to develop a network solution which makes this information easily available.

Flowtite Technology, MHWirth, Telenor and the Directorate for Civil Protection and Emergency Planning are other important clients in the region, where the level of activity is good. ARENDAL SANDEFJORD KRISTIANSAND SKIEN

Sweden region

The level of Bouvet's activity in Sweden is growing. Major frame agreements were won by the company in 2014 from the Swedish Legal, Financial and Administrative Services Agency. The latter has divided the country into five

regions, with frame agreements being awarded in each region for use by all public-sector operations in that region. Bouvet has now won and signed frame agreements for four of the five regions, and deliveries under these are now in progress. The company has also been nominated as a winner in the last region, which includes Stockholm. Substantial call-offs of services are expected under these agreements, which is likely to contribute to growth for Bouvet in Sweden.

Web solutions and digital communication are among the priority areas in Sweden. During the quarter, the company won a frame agreement to serve as the web agency for the Swedish Financial Supervisory Authority.

Bouvet has a solid customer base in Sweden. New assignments were awarded during the quarter by such clients as Ikano Bank, SAS, ICA, Aberdeen Asset Management and Atlas Copco.

Sesam

Sesam is a business unit in Bouvet which develops and sells an integration platform of the same name. This permits data to be acquired easily from different systems, integrated and distributed to other systems. Sesam also supports cross-system data analysis and searching.

Integration with archival solutions is one of the areas where Sesam has demonstrated major benefits. Great interest is being shown in the platform in the market for this utilisation, and Bouvet sees many opportunities.

Statnett has expanded its subscription to Sesam. Four more of the company's systems will utilise the platform for integration and cross-system searches. The Norwegian Conservative Party is a new Sesam client, and has quickly adopted the platform to exchange data between its web portal, membership system and authentication solutions.

Employees

Bouvet's ambition is to be the consultancy with the most satisfied employees. Satisfied staff mean good deliveries, satisfied clients and lower personnel turnover. In connection with its employee survey, Bouvet participated in the Great Place to Work's assessment of the best workplaces in Norway.

Risk

The group is exposed at any time to various forms of operational, market and financial risk. The board and executive management work continuously on risk management and control. This is described in more detail under

Published this March, the results placed the company among the top 10 Norwegian places to work in its class.

The company had 1 000 personnel at 31 March, a decline of eight from 31 December and 68 from the same date in 2014.

corporate governance in the annual report for 2014 (section 10: risk management and internal control). In the board's view, no significant changes occurred over the past three months in the various risks to which the group is exposed.

Prospects

Digital solutions have generated major social changes. These will continue in coming years as new technology and applications become available. Bouvet contributes to this development by creating a simpler everyday life for people and bigger gains from digitisation for enterprises.

Uncertainty prevails in some sectors where Bouvet operates about the scale of investment related to the company's range of services. However, Bouvet has previously displayed great adaptability. Conditions are accordingly favourable for the company to continue its profitable growth in the longer term.

Contacts

Sverre Hurum President and CEO Tel: +47 23 40 60 00 | +47 913 50 047 Erik Stubø CFO Tel: +47 23 40 60 00 | +47 950 36 011

Declaration by the board and CEO

We hereby confirm to the best of our knowledge that the interim financial statements for the first quarter and the preliminary accounts for period from 1 January to 31 March 2015 have been prepared in accordance with IAS 34, and that the information in the financial statements provides a true and fair picture of the overall assets, liabilities, financial position and financial results of the Bouvet ASA group. We also confirm to the best of our knowledge that the interim report provides a true and fair view of important events in the accounting period and their influence on the interim financial statements, the most important risk and uncertainty factors facing the business in the next accounting period, and significant transactions with close associates.

Oslo 12 May 2015 The board of directors of Bouvet ASA

Åge Danielsen Chair of the board Randi Helene Røed Deputy chair

Grethe Høiland Director

Ingebrigt Steen Jensen Director

Egil Christen Dahl Director

Sverre Hurum President and CEO

Consolidated income statement

NOK 1 000 UNAUDITED
JAN-MAR 2015
UNAUDITED
JAN-MAR 2014
CHANGE CHANGE % YEAR 2014
REVENUE 327 001 300 925 26 076 8.7 % 1 132 598
OPERATING EXPENSES
Cost of sales 36 300 36 331 -31 -0.1 % 136 645
Personell expenses 227 365 207 503 19 862 9.6 % 783 760
Depreciation fixed assets 2 602 2 418 184 7.6 % 10 201
Amortisation intangible assets 991 413 578 140.0 % 3 138
Other operating expenses 27 722 27 265 457 1.7 % 119 692
Total operating expenses 294 980 273 930 21 050 7.7 % 1 053 436
Operating profit 32 021 26 995 5 026 18.6 % 79 162
FINANCIAL ITEMS
Other interest income 430 730 -300 -41.1 % 2 616
Other financial income 54 50 4 8.0 % 860
Other interest expense -92 -103 11 -10.7 % -358
Other finance expense -165 -131 -34 26.0 % -703
Net financial items 227 546 -319 -58.4 % 2 415
Ordinary profit before tax 32 248 27 541 4 707 17.1 % 81 577
Income tax expense
Tax expense on ordinary profit 7 871 8 333 -462 -5.5 % 24 596
Total tax expense 7 871 8 333 -462 -5.5 % 24 596
Profit for the period 24 377 19 208 5 169 26.9 % 56 981
Assigned to:
Shareholders in parent company 24 075 19 012 55 737
Non-controlling interests 302 196 1 244

Statement of other income and costs

NOK 1 000 UNAUDITED
JAN-MAR 2015
UNAUDITED
JAN-MAR 2014
CHANGE CHANGE % YEAR 2014
Items that may be reclassified through profit or loss
in subsequent periods
Currency translation differences -144 -55 -89 160,0 % -339
Sum other income and costs -144 -55 -89 160,0 % -339
Profit for the period 24 377 19 208 5 169 26,9 % 56 981
Total profit 24 233 19 153 5 080 26,5 % 56 642
Assigned to:
Shareholders in parent company 23 930 18 956 55 398
Non-controlling interests 302 196 1 244
Diluted earnings per share 2,32 1,84 0,49 26,5 % 5,39
Earnings per share 2,35 1,86 0,49 26,6 % 5,45

Consolidated balance sheet

NOK 1 000 UNAUDITED
31.03.2015
UNAUDITED
31.03.2014
CHANGE CHANGE % 31.12.2014
ASSETS
NON-CURRENT ASSETS
INTANGIBLE ASSETS
Deferred tax asset 707 0 707 N/A 0
Goodwill 31 159 22 204 8 955 40.3 % 31 230
Other intangible assets 15 693 10 755 4 938 45.9 % 15 125
Total intangible assets 47 559 32 959 14 600 44.3 % 46 355
FIXED ASSETS
Office equipment 9 724 9 966 -242 -2.4 % 10 088
Office machines and vehicles 2 481 2 280 201 8.8 % 2 682
IT equipment 11 097 11 400 -303 -2.7 % 11 576
Total fixed assets 23 302 23 646 -344 -1.5 % 24 346
FINANCIAL NON-CURRENT ASSETS
Other long-term receivables 11 20 -9 -45.0 % 11
Total financial non-current assets 11 20 -9 -45.0 % 11
Total non-current assets 70 872 56 625 14 247 25.2 % 70 712
CURRENT ASSETS
Work in progress 113 955 113 764 191 0.2 % 106 625
Trade accounts receivable 153 648 123 688 29 960 24.2 % 131 129
Other short-term receivables 28 567 27 239 1 328 4.9 % 20 027
Cash and cash equivalents 115 768 144 809 -29 041 -20.1 % 118 568
Total current assets 411 938 409 500 2 438 0.6 % 376 349
TOTAL ASSETS 482 810 466 125 16 685 3.6 % 447 061

Consolidated balance sheet

NOK 1 000 UNAUDITED
31.03.2015
UNAUDITED
31.03.2014
CHANGE CHANGE % 31.12.2014
EQUITY AND LIABILITIES
EQUITY
PAID-IN CAPITAL
Share capital 10 250 10 250 0 0.0 % 10 250
Own shares - nominal value -20 -19 -1 5.3 % -20
Share premium fund 10 000 10 000 0 0.0 % 10 000
Total paid-in capital 20 230 20 231 -1 0.0 % 20 230
EARNED EQUITY
Other equity 155 811 157 371 -1 560 -1.0 % 130 128
Total earned equity 155 811 157 371 -1 560 -1.0 % 130 128
Non-controlling interests 3 476 2 925 551 18.8 % 3 174
Total equity 179 517 180 527 -1 010 -0.6 % 153 532
DEBT
LONG-TERM DEBT
Deferred tax 0 506 -506 -100.0 % 156
Other provisions for obligations 456 0 456 N/A 513
Total long-term debt 456 506 -50 -9.9 % 669
SHORT-TERM DEBT
Trade accounts payable 30 755 31 491 -736 -2.3 % 36 733
Income tax payable 18 379 18 058 321 1.8 % 24 176
Public duties payable 108 753 94 018 14 735 15.7 % 109 388
Other short-term debt 144 950 141 525 3 425 2.4 % 122 563
Total short-term debt 302 837 285 092 17 745 6.2 % 292 860
Total liabilities 303 293 285 598 17 695 6.2 % 293 529
TOTAL EQUITY AND LIABILITIES 482 810 466 125 16 685 3.6 % 447 061

Consolidated statement of cash flows

NOK 1 000 UNAUDITED
JAN-MAR 2015
UNAUDITED
JAN-MAR 2014
YEAR 2014
CASH FLOW FROM OPERATING ACTIVITIES
Ordinary profit before tax 32 248 27 541 81 577
Paid tax -13 900 -18 968 -28 284
(Gain)/loss on sale of fixed assets 0 -72 -215
Ordinary depreciation 2 602 2 418 10 201
Amortisation intangible assets 991 413 3 138
Share based payments 1 338 1 181 4 828
Changes in work in progress, accounts receivable and accounts payable -35 827 -27 897 -22 957
Net cash flow from operating activities 12 850 2 102 475
Netto kontantstrøm fra operasjonelle aktiviteter 304 -13 282 48 762
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of fixed assets 0 84 452
Purchase of fixed assets -1 559 -3 356 -12 065
Purchase of intangible assets -1 545 -407 -4 021
Purchase of business 0 0 -12 250
Investment in subsidiaries - net cash 0 -5 909 -1 957
Net cash flow from investing activities -3 104 -9 588 -29 842
CASH FLOWS FROM FINANCING ACTIVITIES
Sales of own shares 0 0 -12 800
Dividend payments 0 0 7 069
Net cash flow from financing activities 0 0 -62 300
Netto kontantstrøm fra finansieringsaktiviter 0 0 -68 031
Net changes in cash and cash equivalents -2 800 -22 870 -49 111
Cash and cash equivalents at the beginning of the period * 118 568 167 679 167 679
Cash and cash equivalents at the end of the period 115 768 144 809 118 568

Consolidated statement of changes in equity

NOK 1 000 SHARE
CAPITAL
OWN SHARES SHARE
PREMIUM
TOTAL
PAID-IN
EQUITY
OTHER
EQUITY
NON
CONTROLLING
INTERESTS
TOTAL
EQUITY
Equity at 01.01.2014 10 250 -19 10 000 20 231 136 869 2 729 159 829
Total comprehensive income 0 18 956 196 19 153
Employee share scheme 0 1 545 1 545
Equity at 31.03.2014 (Unaudited) 10 250 -19 10 000 20 231 157 371 2 925 180 527
Equity at 01.01.2015 10 250 -20 10 000 20 230 130 128 3 174 153 532
Total comprehensive income 23 930 302 24 233
Employee share scheme 1 753 1 753
Equity at 31.03.2015 (Unaudited) 10 250 -20 10 000 20 230 155 811 3 476 179 517

Notes

Note 1: Accounting principles

The group made no changes to the accounting principles applied in 2015. This interim report is presented in accordance with the International Financial Reporting Standards (IFRS) and interpretations determined by the European Union, and have been prepared in accordance with IAS 34. The interim financial statements have not been audited, do not include all the information required in annual financial statements and should be viewed in conjunction with the group's annual report for 2014.

Note 2: Dividend

16 April 2015 the board of directors decided to propose a dividend of NOK 51.25 million, equivalent to NOK 5.00 per share. The Annual General Meeting will be held 19 May 2015.

Key figures Group

NOK 1 000 JAN-MAR 2015 JAN-MAR 2014 CHANGE % YEAR 2014
INCOME STATEMENT
Operating revenue 327 001 300 925 8.7 % 1 132 598
EBITDA 35 614 29 826 19.4 % 92 501
Operating profit (EBIT) 32 021 26 995 18.6 % 79 162
Ordinary profit before tax 32 248 27 541 17.1 % 81 577
Profit for the period 24 377 19 208 26.9 % 56 981
EBITDA-margin 10.9 % 9.9 % 9.9 % 8.2 %
EBIT-margin 9.8 % 9.0 % 9.2 % 7.0 %
BALANCE SHEET
Non-current assets 70 872 56 625 25.2 % 70 712
Current assets 411 938 409 500 0.6 % 376 349
Total assets 482 810 466 125 3.6 % 447 061
Equity
Long-term debt
179 517 180 527
506
-0.6 %
-9.9 %
153 532
669
Short-term debt 456 285 092 6.2 % 292 860
Equity ratio 302 837
37.2 %
38.7 % -4.0 % 34.3 %
Liquidity ratio 1.36 1.44 -5.3 % 1.29
CASH FLOW
Net cash flow operations 304 -13 282 N/A 48 762
Net free cash flow -2 800 -22 870 N/A 18 921
Net cash flow -2 800 -22 870 N/A -49 111
Cash flow margin 0.1 % -4.4 % N/A 4.3 %
SHARE INFORMATION
Number of shares 10 250 000 10 250 000 0.0 % 10 250 000
Weighted average basic shares outstanding 10 230 312 10 230 644 0.0 % 10 220 261
Weighted average diluted shares outstanding 10 362 120 10 355 542 0.1 % 10 346 049
EBIT per share 3.09 2.61 18.3 % 7.59
Diluted EBIT per share 3.05 2.58 18.2 % 7.49
Earnings per share 2.35 1.86 26.6 % 5.45
Diluted earnings per share 2.32 1.84 26.5 % 5.39
Equity per share 17.51 17.61 -0.6 % 14.98
Dividend per share 0.00 0.00 N/A 6.00
EMPLOYEES
Number of employees (year end) 1 000 932 7.3 % 1 008
Average number of employees 1 003 931 7.8 % 958
Operating revenue per employee 326 323 0.8 % 1 182
Operating cost per employee 294 294 0.0 % 1 100
EBIT per employee 32 29 10.1 % 83

Definitions

Cash flow margin Net cash flow operations / Operating revenue
Diluted earnings per share Profit for the period assigned to shareholders in parent company / weighted average
diluted shares outstanding
Diluted EBIT per share EBIT assigned to shareholders in parent company / weighted average diluted shares
outstanding
Dividend per share Paid dividend per share througout the year
Earnings per share Profit for the period assigned to shareholders in parent company / weighted average
basic shares outstanding
EBIT Operating profit
EBIT per employee EBIT / average number of employees
EBIT per share EBIT assigned to shareholders in parent company / weighted average basic shares outstanding
EBITDA Operating profit + depreciation fixed assets and intangible assets
EBITDA-margin EBITDA / operating revenue
EBIT-margin EBIT / operating revenue
Equity per share Equity / number of shares
Equity ratio Equity / total assets
Liquidity ratio Current assets / Short-term debt
Net free cash flow Net cash flow operations - Net cash flow investments
Number of shares Number of issued shares at the end of the year
Operating cost per employee Operating cost / average number of employees
Operating revenue per employee Operating revenue / average number of employees
Weighted average basic shares outstanding Issued shares adjusted for own shares on average for the year
Weighted average diluted shares outstanding Issued shares adjusted for own shares and share scheme on average for the year

Local presence gives closeness to our customers

The Group has offices in Oslo, Trondheim, Bergen, Haugesund, Stavanger, Kristiansand, Arendal, Skien, Sandvika, Sandefjord, Malmö, Örebro and Stockholm. Our philosophy is that competence should be utilized across the company, while projects are attached locally. This means that our customers will have a local account manager and project manager, but access to competence independent of its location.

OSLO

Sandakerveien 24c, bygg D11 Box 4430 Nydalen 0403 Oslo Tel: (+47) 23 40 60 00

ARENDAL

Vikaveien 29 4817 His Tel: (+47) 23 40 60 00

BERGEN

Solheimsgaten 15 5058 Bergen Tel: (+47) 55 20 09 17

GRENLAND

Klostergata 33 Klosterøya 3732 Skien Tel: (+47) 23 40 60 00

KRISTIANSAND

Kjøita 25 4630 Kristiansand Tel: (+47) 23 40 60 00

STAVANGER Fabrikkveien 10 4033 Stavanger

Strandkaien 36 4005 Stavanger Tel: (+47) 52 82 10 17

Tel: (+47) 51 20 00 20

HAUGESUND Diktervegen 8 5538 Haugesund Tel: (+47) 52 82 10 17

TRONDHEIM Kjøpmannsgata 35 7011 Trondheim Tel: (+47) 23 40 60 00

SANDVIKA Leif Tronstadsplass 6 1337 Sandvika Tel: (+47) 23 40 60 00

SANDEFJORD Klinestadmoen 9 3241 Sandefjord Tel: (+47) 23 40 60 00 STOCKHOLM Arenavägen 45, 16 tr 121 77 Johanneshov Tel: (+46) 8 578 771 00

MALMÖ

Södergatan 3 211 34 Malmö Tel: (+46) 40 636 60 00

ÖREBRO

Storgatan 3 70361 Örebro Tel: (+46) 0 709 431 411

www.bouvet.net

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