FIRST QUARTER 2017 RESULTS
Christian Nørgaard Madsen, CEO | Anne Harris, CFO
multiconsult.no
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
- Strong first quarter results driven by a positive calendar effect in the quarter
- Continued improvements in LINK arkitektur
- Improved contribution from the international segment in the quarter
- Acquisition of Iterio AB completed in line with 3-2-1 GO strategy
Successful acquisition of Iterio AB
- In line with 3-2-1 GO strategic objectives
- ─ Developing a multidisciplinary business in Sweden
- Swedish consulting engineering company
- ‒ Net operating revenue SEK 87.2 million in 2016
- ‒ Over 70 employees with offices in Stockholm, Gothenburg and Malmö
- ‒ Mainly involved with project and design management
- ‒ Core expertise within geotechnics, environment and traffic
- ‒ Solid customer base
- Consolidated in the accounts as of 1 March 2017
Adjustment to the business areas definitions
2020 Revenue ambition per Business Area
Financial summary 1Q 2017
- Net operating revenue up 22.3% y-o-y to NOK 799.7 million
- Organic growth 15.6%
- Increased workforce due to net recruitment and acquisitions
- Positive calendar effect in the quarter
- Billing rates at a similar level as last year
- EBIT of NOK 94.4 million, 11.8% margin
- Operating expenses increase in line with growth
- Increased employee cost not fully reflected in billing rates
Key ongoing projects 1Q 2017
• Campus Ås
- Prinsensgate 26 Rehabilitation
- Hydro Karmøy
- New Airbase Ørland
- Follo line
multiconsult.no
Order intake 1Q 2017
Highlights
- Order intake increased by 40.7 % to NOK 1 073.7 million
- NOK 85.4 million from the inclusion of strong backlog of Iterio AB
- Many small and mid-size contracts in the quarter
- Promising tender pipeline in Transportation
Key order intake
- Tønsberg Hospital
- Neelum Jhelum
- Campus Ås
- Follo line
- Mount Coffee
Order backlog development per business area
- Strong order backlog up 12.7% y-o-y to NOK 1 966.5 million
- Inclusion of Iterio AB contributes with NOK 85.4 million
- Call-offs on frame agreements included when signed
- ─ Major new frame agreement within several business areas with NDEA for environmental advisory and risk assessments *
Organisation
- Completed acquisition of Iterio AB
- Several minor acquisitions completed in line with growth strategy for Norway
- Prosjektforum in Sarpsborg
- Rambøll office in Ålesund
- BOMEK Consulting in Bodø (1 April)
- Multiconsult continues to climb at Universum student Survey 2017
-
3 in Norway
-
1 among consultants
- Stable organisation
- Employee turnover at 7.2%
• Mr. Nigel Wilson elected new Chair of the Board at the annual general meeting 11 May
FINANCIAL REVIEW
Anne Harris, CFO
Financial highlights 1Q 2017
- NOK 800 million
- Organic growth and acquisitions
- Positive calendar effect
• 1Q stable at 68.4% • Down by 0.7 pp y-o-y
Segments 1Q 2017
Greater
Oslo Area |
1Q 2017 |
1Q 2016 |
Change |
| EBIT MNOK |
52.1 |
36.6 |
42.5% |
| EBIT margin % |
14.9% |
12.1% |
2.7 pp |
Billing
ratio |
67.8% |
71.3% |
3.5 pp |
Number
of
employees |
898 |
846 |
6.1% |
| Regions Norway |
1Q 2017 |
1Q 2016 |
Change |
| EBIT MNOK |
22.4 |
12.3 |
82.8% |
| EBIT margin % |
7.9% |
5.1% |
2.9 pp |
Billing
ratio |
66.7% |
68.0% |
1.3 pp |
Number
of
employees |
807 |
757 |
6.6% |
| International |
1Q 2017 |
1Q 2016 |
Change |
| EBIT MNOK |
13.1 |
-0.6 |
>100% |
| EBIT margin % |
28.2% |
-3.0% |
31.2 pp |
Billing
ratio |
73.3% |
59.3% |
14.0
pp |
Number
of
employees |
208 |
110 |
89.1% |
LINK
arkitektur |
1Q 2017 |
1Q 2016 |
Change |
| EBIT MNOK |
8.3 |
-0.7 |
>100% |
| EBIT margin % |
6.8% |
-0.8% |
7.6 pp |
Billing
ratio |
71.7% |
70.5% |
1.2 pp |
Number
of
employees |
431 |
338 |
27.5% |
Operating revenues by business area 1Q 2017
Cash flows year to date 2017
- Improved cash flow from operations
- Change in working capital driven by
- Increased production
- Higher work in progress
- Investments
- Acquisition of Iterio AB
- Ordinary asset replacement
- Financing
- Increased debt due to acquisitions
Outlook
- The overall market outlook for 2017 remains fairly positive
- Confirmed by industry reports
- Continued strong competition and price pressure on large projects
multiconsult.no
- Market rates have stabilized
- Increased employee cost not fully reflected in billing rates
- Strong combination of professional capability and solid order backlog
- Continued focus on sales efforts, project execution and billing ratio
- Active and systematic implementation of the 3-2-1 GO strategy
FINANCIAL CALENDAR
| 1Q 2017 results: |
22
May 2017 |
|
Dividend
payment: |
31
May 2017 |
|
| 2Q 2017 results: |
31
Aug
2017 |
|
| 3Q 2017 results: |
9
Nov 2017 |
|
Q&A
FIRST QUARTER 2017 RESULTS | Christian Nørgaard Madsen, CEO Anne Harris, CFO