Multiconsult

Earnings Release • Nov 4, 2020

THIRD QUARTER 2020 RESULTS

Grethe Bergly, CEO | Hans-Jørgen Wibstad, CFO

Date: 4 November 2020

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 forwardlooking statements. In addition any forward-looking 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 GRETHE BERGLY | CEO

Highlights

• Third consecutive quarter of solid results turnaround ahead of schedule
• Solid revenue growth year to date
• Year to date EBIT of NOK 318.1 million (11.8%) ex. restructuring
• nextLEVEL restructuring cost of NOK 30.0 million not included
• Significant cost reductions & nextLEVEL ahead of schedule
• Improved billing ratio
• Order intake of NOK 919 million in the quarter and stable order backlog
• Modest impact of the Covid-19 situation, but creating some uncertainty
• Proposed dividend of NOK 2.00 per share

Order intake | 3Q 2020

Highlights

• Significant contracts awarded during the quarter
• Gaustad (nye Rikshospitalet) in Oslo
• Water supply to the city of Oslo (new)
• Rumakali & Ruhudji HTL
• Long-term tender pipeline is positive, across most business areas
• Signs of possible slow-down due to Covid-19 and ongoing public reforms in Norway

Key order intake

• Water supply to Oslo (City of Oslo) (new)
• LNG terminal (Polskie LNG SA) (new)
• Rumakali & Ruhudji HPP and TL (new)
• Nye Askøy high school (new)
• Skarnes railway station (new)

Order backlog | 3Q 2020

Organisation & People

• 2 938 employees as of 30 September 2020
• Deichman Bjørvika winner of The Concrete Award "Betongtavlen" • The hospital in Vestfold winner buildingSMART's international (digitalisation) award
• finals for RIF's award "Young Advisor of the Year"
• Eirik Bjørnstad Smart Building Advisor in the • Extraordinary bonus to employees for strong commitment and contribution to the turnaround process, estimated total cost of NOK 25 million 2 938

Covid-19

Taking prudent responsible actions to secure our employees, our business and our customers

• Strong commitment from our employees
• Continuous close dialog with employees and clients
• Largely unchanged capacity due to high level of digitalisation
• Since the end of August 2020, no employees on temporary leave
• Covid-19 response team still mobilised
• Increased uncertainty, and signs of possible slowdown in small and medium sized projects

FINANCIAL REVIEW HANS-JØRGEN WIBSTAD | CFO

Financial Highlights | 3Q 2020

• Net operating revenues up 3.9 % to NOK 748.5 million
• EBIT of NOK 68.1 million, 9.1% margin
• EBIT of NOK 98.1 million (ex restructuring cost) reflecting an EBIT margin of 13.1%
• 2020: nextLEVEL restructuring cost of NOK 30.0 million not included
• 2019 FY: One-off charge of NOK 34.2 million not included
• Other opex* ratio reduced to 16.3% from 20.2% same period last year
• Billing ratio 69.2% (67.1%)

Consolidated key figures NOK million	3Q 2020	3Q 2019	Change	FY 2019
Net Operating Revenues	748.5	720.4	3.9 %	3 436
EBIT	68.1	21.0	223.8 %	106.3
EBIT margin %	9.1 %	2.9 %	6.2 pp	3.1 %
EBIT ex restructuring cost	98.1	21.0	366.3 %	140.5
EBIT margin ex restructuring cost	13.1 %	2.9 %	10.2 pp	4.1 %
Order intake	919	945	(2.7 %)	4 348
Order Backlog	3 040	2 732	11.3 %	2 968
Billing ratio	69.2 %	67.1 %	2.1 pp	69.2 %
Number of employees	2 938	3 005	(2.2 %)	2 994

Financial Highlights | YTD 2020

• Net operating revenues up 6.4% to NOK 2 693.8 million
• EBIT of NOK 288.1 million, 10.7% margin
• EBIT of NOK 318.1 million (ex restructuring cost) reflecting an EBIT margin of 11.8%
• 2020: nextLEVEL restructuring cost of NOK 30.0 million not included
• 2019: One-off charge of NOK 30.2 million not included (FY NOK 34.2 million)
• Other opex* ratio reduced to 15.8% from 18.8% same period last year
• Billing ratio 70.8% (69.6%)
• Strong balance sheet Net debt free

Consolidated key figures NOK million	YTD 2020	YTD 2019	Change	FY 2019
Net Operating Revenues	2 693.8	2 531.4	6.4 %	3 436
EBIT	288.1	97.6	195.2 %	106.3
EBIT margin %	10.7 %	3.9 %	6.8 pp	3.1 %
EBIT ex restructuring cost	318.1	127.8	148.9 %	140.5
EBIT margin ex restructuring cost	11.8 %	5.1 %	6.7 pp	4.1 %
Order intake	3 261	3 019	8.0 %	4 348
Order Backlog	3 040	2 732	11.3 %	2 968
Billing ratio	70.8 %	69.6 %	1.3 pp	69.2 %
Number of employees	2 938	3 005	(2.2 %)	2 994

Financial Highlights | 3Q 2020

Segments

• Region Oslo
• Region Norway
• Energy
• International
• LINK arkitektur

Region Oslo | YTD 2020

• Revenues up 7.7% y-o-y, to NOK 863.2 million
• EBIT was NOK 135.5 million reflecting an EBIT margin of 15.7%
• Reduced operating expenses for the period
• Billing ratio up 3.2 pp y-o-y, to 73.4%
• Order intake NOK 847.7 million, decrease of 5.6 % y-o-y

Region Oslo NOK million	YTD 2020	YTD 2019	Change	FY 2019
Net Operating Revenues	863.2	801.6	7.7 %	1 091
EBIT	135.5	45.8	195.9 %	53.0
EBIT margin %	15.7 %	5.7 %	10.0 pp	4.9 %
Order intake	847.7	898.4	(5.6 %)	1 431
Order Backlog	889.0	854.2	(4.1 %)	1 027
Billing ratio	73.4 %	70.2 %	3.2 pp	70.0 %
Number of employees	780	824	(5.3 %)	817

Region Norway | YTD 2020

• Revenues up 5.1% y-o-y, to 1 069.9 million
• EBIT was NOK 137.4 million reflecting an EBIT margin of 12.8%
• Reduced operating expenses for the period
• Billing ratio 69.7%, up 1.4 pp y-o-y
• Significant increase in order intake y-o-y of 14.0% to NOK 1 207 million
• Order intake increase in all major business areas compared to the same period last year

Region Norway NOK million	YTD 2020	YTD 2019	Change	FY 2019
Net Operating Revenues	1 069.9	1 018.5	5.1 %	1 381
EBIT	137.4	44.8	206.5 %	56.5
EBIT margin %	12.8%	4.4%	8.4 pp	4.1 %
Order intake	1 207	1 058	14.0 %	1 438
Order Backlog	654.4	586.8	11.5 %	580.8
Billing ratio	69.7%	68.3%	1.4 pp	67.9 %
Number of employees	1 042	1 074	(3.0 %)	1 068

Energy | YTD 2020

• Revenues up 0.7% y-o-y, to 185.1 million
• EBIT was NOK 3.4 million reflecting an EBIT margin of 1.9%
• Reduced operating expenses for the period
• Billing ratio down 1.0pp y-o-y, to 61.4%
• Satisfactory performance in Norway low activity and loss making in Multiconsult UK
• Important contracts signed lately
• Rumakali & Ruhudji Hydropower plant and Transmission Line
• Statnett SF Framework agreement

Energy NOK million	YTD 2020	YTD 2019	Change	FY 2019
Net Operating Revenues	185.1	183.8	0.7 %	250.6
EBIT	3.4	(8.4)	N/A	-10.6
EBIT margin %	1.9 %	(4.5 %)	6.4 pp	-4.2 %
Order intake	271.1	307.7	(11.9 %)	381.0
Order Backlog	306.0	277.7	10.2 %	262.8
Billing ratio	61.4%	62.4%	(1.0 pp)	62.8 %
Number of employees	189	203	(6.9 %)	199

LINK arkitektur | YTD 2020

• Revenues up 2.3% y-o-y, to 409.9 million
• EBIT was NOK 11.8 million reflecting an EBIT margin of 2.9%
• Billing ratio down 1.1 pp y-o-y, to 73.3%
• Solid performance in Norway, still challenges in Denmark which is loss-making
• Order intake up 15.2 % y-o-y, to NOK 566.8 million

LINK arkitektur NOK million	YTD 2020	YTD 2019	Change	FY 2019
Net Operating Revenues	409.9	400.7	2.3 %	535.8
EBIT	11.8	18.6	(36.6 %)	11.0
EBIT margin %	2.9%	4.6%	(1.7 pp)	2.1 %
Order intake	566.8	491.8	15.2 %	728.6
Order Backlog	645.3	551.4	17.0 %	620.2
Billing ratio	73.3 %	74.4 %	(1.1 pp)	74.0 %
Number of employees	489	494	(1.0 %)	489

International | YTD 2020

• Revenues up 18.3% y-o-y, to NOK 177.9 million
• EBIT was NOK 19.1 million reflecting an EBIT margin of 10.7%
• Order intake up 40.7 % y-o-y, to NOK 368.7 million
• Multiconsult Polska Continued growth and solid performance
• Iterio AB Continued growth and solid performance
• Significant contract signed
• LNG-to-Rail transportation installation (Polskie LNG SA)

International NOK million	YTD 2020	YTD 2019	Change	FY 2019
Net Operating Revenues	177.9	150.4	18.3 %	206.9
EBIT	19.1	14.2	34.3 %	17.3
EBIT margin %	10.7%	9.5%	1.2 pp	8.4 %
Order intake	368.7	262.1	40.7 %	369.6
Order Backlog	588.9	478.5	23.1 %	497.6
Billing ratio	75.8 %	75.4 %	0.3 pp	73.5 %
Number of employees	312	298	4.7 %	299

Operating revenues by business area YTD 2020

Financial Position | YTD 2020

• Solid cash generation last 12 month (LTM)

• NIBD improved by NOK 419.7 million LTM
• Repayment on the NOK 200 million revolving credit facility
• In second quarter by NOK 72 million
• In third quarter by NOK 100 million
• Strong Balance Sheet position, net debt free
• Total undrawn loan facilities NOK 520 million

Cash and liabilities NOK million	3Q 2020	2Q 2020	1Q 2020	4Q 2019	3Q 2019
Cash	118.4	237.4	62.9	73.6	10.1
Net interest-bearing	debt** (136.7)	(156.2)	95.2	91.6	283.0

**Excluding IFRS 16 leasing debt

*Shaded areas show IFRS 16 (non-cash) effects on CF from operations-, working capital- and financing

nextLEVEL

3Q | 2020

nextLEVEL ahead of schedule

Outlook

• Strong position and solutions with clients
• Positive development in the on-going turnaround process
• The nextLEVEL programme is ahead of schedule
• The order backlog is at a solid level
• Overall good market outlook and tender pipeline in most business areas
• Some increased uncertainties and possible signs of slowdown in small and medium sized projects caused by recent negative Covid-19 development and ongoing public reforms in Norway

FINANCIAL CALENDAR

CMD	4 Nov 2020
4Q 2020	17 Feb 2021
1Q 2021	5 May 2021
2Q 2021	18 Aug 2021
3Q 2021	3 Nov 2021

multiconsultgroup.com

Q&A THIRD QUARTER 2020 RESULTS

GRETHE BERGLY & HANS-JØRGEN WIBSTAD

CMD 2020

The live webcast from the Capital Markets Day can be accessed at www.multiconsult-ir.com and at https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20201104\_6