FIRST QUARTER 2016 RESULTS
Christian Nørgaard Madsen, CEO | Anne Harris, CFO
Disclaimer
This presentation includes forward-looking statements which are based on our current expectations and projections about future events. All statements other than statements of historical facts included in this presentation, including statements regarding our future financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations, including our plans for future costs savings and synergies may be deemed to be forward-looking statements. Words such as "believe," "expect," "anticipate," "may," "assume," "plan," "intend," "will," "should," "estimate," "risk" and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. You should not place undue reliance on these forward-looking statements. In addition any forwardlooking statements are made only as of the date of this notice, and we do not intend and do not assume any obligation to update any statements set forth in this presentation.
INTRODUCTION AND HIGHLIGHTS
Christian Nørgaard Madsen, CEO
Highlights
- Revenue increase of 18%, mainly derived from LINK arkitektur AS
- Revenue and earnings reduced by calendar effect
- Close to NOK 30 million in the quarter
- Billing ratio significantly improved
- Order backlog remains solid in a competitive market environment
Financial summary 1Q 2016
- Net operating revenue up 18% y-o-y to NOK 654 million
- LINK arkitektur contributed 16 pp of total growth
- Revenues reduced by calendar effect
- Buildings & Properties (B & P) and Transportation & Infrastructure (T & I) with strong contribution
- Industry with significant growth
- EBIT of NOK 48 million, reduced by calendar effect
- Billing ratio significantly up by 2.9 pp to 69.1% y-o-y
- Calendar effect reduces revenues, not costs
Key ongoing projects 1Q 2016
- Hydro Karmøy
- Campus Ås
- F35 Fighter Air Base
- Prinsensgate 26 Rehabilitation
- Mount Coffee
Order intake 1Q 2016
Highlights
- Order intake remains solid in a competitive market environment
- Awarded contracts within all business areas
- Call-offs on the important Fosen Wind frame agreement recorded in the quarter
- Continued growth within Energy
- Majority related to extensions of existing contracts
Key order intake
- Hydro Karmøy
- Campus Ås
- Mount Coffee
- New Hospital Helsingborg
- F35 Fighter Air Base
Order backlog development
- Stable backlog up 8% y-o-y to NOK 1 745 million
- Transportation & Infrastructure and Buildings & Properties highest contributors
- Call-offs on frame agreements included when signed
Organisation
- Confirmed leading position at Universum study 2016
- Engineering students:
-
4 in Norway
-
1 among consulting engineers
- EFCA Young Professionals
- Employee nominated as finalist for Europe's most talented engineer among 13 finalists
- Stable organisation
- Employee turnover at 7.5%*
FINANCIAL REVIEW
Anne Harris, CFO
Financial highlights 1Q 2016
- Up 18% to NOK 654 million
- LINK arkitektur strong impact
- Three days negative calendar effect
-
Solid contribution from Buildings & Properties and Transportation & Infrastructure
-
Up by 2.9 pp to 69.1%
-
Significant improvement in Regions Norway and Greater Oslo area
-
EBIT of NOK 48 million
- Impacted by approx. NOK 30 million calendar effect
-
Significantly improved billing ratio
-
Up 23% to 2 165 employees
- Acquisition of LINK arkitektur
- Organic growth of 4%
Operating revenues by business area 1Q 2016
Segments 1Q 2016
Greater
Oslo Area |
1Q 2016 |
1Q 2015 |
Change |
| EBIT MNOK |
36.6 |
53.3 |
31% |
Billing
Ratio |
71.3% |
68.4% |
2.9 pp |
Number
of
employees |
846 |
797 |
6% |
- Higher revenues from Industry, partly offset by O & G
- Higher activity and billing ratio
- Calendar effect and project write-ups 2015
- Higher expenses due to increased headcount
| Regions Norway |
1Q 2016 |
1Q 2015 |
Change |
| EBIT MNOK |
12.3 |
24.1 |
49% |
Billing
Ratio |
68.0% |
64.4% |
3.6 pp |
Number
of
employees |
757 |
758 |
Stable |
- Higher revenue from B & P, partly offset by O & G
- Improvement in billing ratio
- Calendar effect and price pressure
- Higher administrative expenses
| International |
1Q 2016 |
1Q
2015 |
Change |
| EBIT MNOK |
-0.6 |
-0.2 |
>100% |
Billing
Ratio |
59.3% |
61.4% |
2.1 pp |
Number
of
employees |
110 |
91 |
21% |
- Improved revenue and activity in subsidiaries
- Offset by administrative management expenses
Other
Business |
1Q 2016 |
1Q 2015 |
Change |
| EBIT MNOK |
-0.7 |
N/A |
N/A |
Billing
Ratio |
70.5% |
N/A |
N/A |
Number
of
employees |
338 |
N/A |
N/A |
- Good operations in Sweden
- Weak results in Norway due to low billing ratio and reduced billing rates
- Urban LINK established to lift group initiatives
Cash flows year to date 2016
- Cash balance remains positive
- Cash flow reduced by normal business fluctuations
- Change in working capital includes:
- ─ Lower trade payables
- ─ Increased work in progress
Market outlook
- Fairly robust overall market outlook
- Continued strong outlook within T & I
- Modest and stable growth expected within B & P
- Architecture market continues to be impacted by significant regional variations
- Strong market for Energy in Norway and Internationally
- Strong competition and price pressure
- Weak NOK helps home market and exports
- Continued focus on efficiency and billing ratio
- Stable order backlog and valuable frame agreements
- foundation for continued growth
FINANCIAL CALENDAR
multiconsult.no
| 2Q 2016 results: |
23 Aug
2016 |
| 3Q 2016 results: |
8 Nov 2016 |
www.multiconsult-ir.com