Multiconsult — Earnings Release 2015

Feb 26, 2016

FOURTH QUARTER 2015 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

• On track to deliver on strategic goals for revenue and margins
• Revenue growth of 13% in 2015, organic growth excluding LINK arkitektur was 7%
• Improvement in the billing ratio
• Earnings impacted by lower contribution from subsidiaries
• Order backlog remains stable
• NOK 2.90 per share dividend for 2015 will be proposed

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Financial summary 4Q 2015

• Net operating revenue up 22% to NOK 649 million
• LINK arkitektur contributed 16 pp of total growth
• High activity and strong operations in the quarter
• Buildings & Properties and Transportation & Infrastructure with strong contribution
• Industry with significant growth
• EBIT of NOK 41 million in line with last year
• Billing ratio up by 2.2 pp to 68.8% y-o-y
• Low contribution from subsidiaries

multiconsult.no

Financial summary 2015

• Net operating revenue up 13% to NOK 2 248 million
• EBIT up 7% to NOK 226 million
• EBIT margin at 10%
• Will propose 2.90 NOK per share dividend
• In line with dividend policy

Key ongoing projects 4Q 2015

• Campus Ås
• Hydro Karmøy
• Lyse-Stølaheia
• F35 Fighter Air Base
• Nyhamna

Order intake 4Q 2015

Highlights

• Order intake remains stable in a competitive market environment
• Awarded contracts within all business areas
• LINK arkitektur included in 2015
• Majority related to extensions of existing contracts

Key order intake

• Intercity Haug Halden
• Campus Ås
• F35 Fighter Air Base
• Devoll hydropower
• Nyhamna

Order backlog development

• Stable backlog up 15% to NOK 1 728 million
• LINK arkitektur included as of third quarter 2015
• Transportation & Infrastructure and Buildings & Properties highest contributors
• Call-offs on frame agreements included when signed

multiconsult.no

Organisation

• Successful share purchase programme for employees
• Shares through programme over-subscribed
• 22% shares owned by employees
• 777 employees signed up for shares through programme
• Multiple awards
• 2015 RIF young advisor of the year
• European Business Awards
  • Finalist among 32 000 companies across Europe
• Stable organisation in 2015
• Employee turnover at 7.9%*

FINANCIAL REVIEW

Anne Harris, CFO

Financial highlights 4Q 2015

• Up 22% to NOK 649 million • LINK arkitektur strong impact

• Solid contribution from Buildings & Properties and Transportation & Infrastructure

• Up by 2.2 pp to 68.8%

• Visible results from improvement initiatives
• Strong contribution from Greater Oslo area

• Solid improvement in Regions Norway

• NOK 41 million in line with last year

• Strong project execution
• Improved billing ratio
• Impacted by higher expenses and subsidiaries

Operating revenues by business area 4Q 2015

Segments 4Q 2015

Greater Oslo Area	4Q 2015	4Q 2014	Change
EBIT MNOK	37.8	38.1	1%
Billing Ratio	71.2%	70.1%	1 pp
Number of employees	811	778	4%

• Higher activity within Energy, Industry and T & I
• Good project execution and higher billing ratio offset by higher operating expenses

Regions Norway	4Q 2015	4Q 2014	Change
EBIT MNOK	4.4	7.1	37%
Billing Ratio	66.9%	65.0%	2 pp
Number of employees	741	737	1%

• Higher activity within B & P and T & I
• Improved billing ratio
• Impacted by reduced current billing rates and higher operating expenses

International	4Q 2015	4Q 2014	Change
EBIT MNOK	-1.5	0.6	>100%
Billing Ratio	57.8%	57.4%	<1 pp
Number of employees	113	102	11%

• MC Polska and MC Asia with positive contributions
• MC UK impacted by lower project activity
• Result impacted by the weakening of the NOK

Other Business	4Q 2015	4Q 2014	Change
EBIT MNOK	0.1	N/A	N/A
Billing Ratio	71.3%	N/A	N/A
Number of employees	332	N/A	N/A

• Good operations in Sweden
• Weak results in Norway due to reduced billing rates

Financial highlights 2015

• Performance in line with strategic goal 2017
• Net operating revenue growth of 13%
• Underlying EBIT growth of 7%
• EBIT margin 10%
• Solid operational performance
• Strong project execution
• Improved billing ratio

Cash flows year to date 2015

• Solid cash flow from operations
• Cash flow to financing activities includes
• ₋ Ordinary dividend payments
• ₋ Extraordinary dividend payment
• ₋ Share repurchase for employee programme during 2H 2015
• Cash flow to investing activities includes
• ₋ Acquisition of LINK arkitektur

Market outlook

• Fairly robust overall market outlook
• Continued strong outlook within Transportation & Infrastructure
• Short term concern caused by delay from Norwegian public roads entities
• Slow and stable growth expected within Buildings & Properties
• Strong market for Energy in Norway and Internationally
• Strong competition and price pressure
• Weaker NOK helps Norwegian exports and Industry prospects
• Continued focus on efficiency and billing ratio
• Stable order backlog foundation for continued growth

FINANCIAL CALENDAR

Annual report 2015:	5 Apr 2016
Annual General Meeting:	26 Apr 2016
1Q 2016 results:	10 May 2016
2Q 2016 results:	23 Aug 2016
3Q 2016 results:	8 Nov 2016

www.multiconsult-ir.com