Multiconsult

Earnings Release • Feb 26, 2020

Multiconsult ASA fourth quarter and full year 2019

Multiconsult ASA fourth quarter and full year 2019

Net revenues were NOK 904.5 million in the fourth quarter and NOK 3 435.8 for

the full year 2019. Multiconsult had good project deliveries and a strong order

intake in fourth quarter of 2019 and ends the year with an record-high order

backlog of NOK 2 968 million. Weak earnings in the fourth quarter were mainly

impacted by lower billing ratio. Full year net operating revenues is increased

by 3.0%. EBIT in 2019 was NOK 106.3 million, reflecting a 3.1% margin. For 2019,

the board proposes a dividend of NOK 1.00 per share.

Oslo, 26 February 2020

"2019 marked the start of a turnaround for Multiconsult and the results for 2019

reflect that we are at the start of this journey. I am pleased to see that our

strong teams throughout 2019 have continued our commitment on delivering

outstanding solutions to our customers, and we are ending the year with revenue

growth and a record-high order book", says Grethe Bergly, CEO of Multiconsult

ASA.

Improvement programme on track

In the latter part of 2019, Multiconsult initiated the nextLEVEL improvement

programme that is set to bring profitability back to sustainable levels.

"I am pleased to see that we are on-track on the nextLEVEL improvement

programme, initiated in fourth quarter 2019, set to bring our profitability back

to sustainable levels within 18 months. In the fourth quarter, we experienced a

weak result mainly caused by low billing ratio, and we are therefore introducing

additional initiatives to secure that we achieve our financial targets by 2021",

says Bergly.

Fourth quarter 2019

Fourth quarter net operating revenues increased by 1.4% to NOK 904.5 million

(NOK 892.2 million) compared to same period last year. Net recruitment was 60

employees year-on-year. Net project write-downs were NOK 16.8 million (NOK 33.8

million) in the quarter, which is 1.9% of net operating revenues, reflecting an

improved level. A lower billing ratio impacted growth in revenues negatively.

Operating expenses in the fourth quarter were NOK 847.1 million (NOK 870.9

million). The group implemented IFRS 16 on 1 January 2019. Adjusted for IFRS 16

effect, the level of operating expenses increased by 1.8%, mainly caused by

higher activity. Lower other operating expenses partly offset the increase.

Fourth quarter EBIT was NOK 8.7 million (NOK 9.5 million), reflecting a 1.0%

EBIT margin, including a positive IFRS 16 effect of NOK 4.4 million and negative

NOK 4 million severance/restructuring costs when comparing with the same quarter

last year.

Full year 2019

Multiconsult delivered net operating revenues of NOK 3 435.8 million (NOK 3

334.8 million) in 2019, reflecting an increase of 3.0%. Adjusted for the non

-recurring legal settlement with Stortinget in the second quarter, organic

growth in net operating revenues was 3.6%. The increase is purely organic and

mainly driven by higher activity level.

Operating expenses decreased 1.5% to NOK 3 136.7 million (NOK 3 185.7 million).

Adjusted for IFRS 16 effect, operating expenses increased by 3.4%. The increase

is caused by higher activity level, ordinary salary adjustment, general consumer

price index and one-off severance/restructuring expenses. Lower other operating

expenses partly offset the increase.

Full year 2019 EBIT was NOK 106.3 million (NOK 99.0 million), reflecting an EBIT

margin of 3.1%. Compared with full year 2018, the reported EBIT includes NOK

34.2 million in negative effects from legal dispute settlement and one-off

severance/restructuring expenses, as well as a positive IFRS 16 effect of NOK

20.5 million.

Order backlog

Order backlog at the end 2019 remains good at NOK 2 968 million (NOK 2 803). The

order backlog is all-time high and provides a good foundation, supported by

valuable frame agreements generated from a broad customer base. Order intake in

the fourth quarter was NOK 1 329 million. The overall pipeline of potential

projects coming up for tender over the next 12 months is good.

The overall market outlook for Multiconsult's services is good across most

business areas. There are some uncertainties with respect to continued growth in

certain sectors. The ongoing public reforms in Norway is also creating some

short-term uncertainties.

A presentation of the fourth quarter and full year 2019 results will be held

today, 26 February, in Norwegian at 09:00 CET, followed by an audio cast and

conference call at 10:30 CET in English. The Norwegian presentation will be held

at Felix Conference Centre, Bryggetorget 3, Oslo. The presentation will be held

by CEO Grethe Bergly and CFO Hans-Jørgen Wibstad. A live webcast from the

Norwegian presentation can be accessed at www.multiconsult-ir.com and at

https://channel.royalcast.com/webcast/hegnarmedia/20200226_2/.

The English presentation will start at 10:30 CET, and will be held by CEO Grethe

Bergly and CFO Hans-Jørgen Wibstad. The presentation can be accessed at

https://channel.royalcast.com/webcast/hegnarmedia/20200226_6/ or by conference

call.

Participant Access Information for the English conference call:

Please join the event conference 5-10 minutes prior to the start time.

You will be asked to provide the confirmation code or the title of your

conference.

Event Conference Title:     Q4 Results

Confirmation Code:            3135123

Location                Purpose            Phone Number

Norway                 Participant        +47 2350 0296

United Kingdom       Participant        +44 (0)330 336 9411

United States         Participant        +1 323-794-2575

International          Participant        +44 (0)330 336 9411

For further information, please contact:

CFO:

Hans-Jørgen Wibstad

Phone: +47 916 89 661

E-mail: hanw@multiconsult.no

Media:

Gaute Christensen, VP Communications

Phone: +47 911 70 188

E-mail: gaute.christensen@multiconsult.no

ABOUT MULTICONSULT

Multiconsult is a leading Norwegian multidisciplinary engineering consulting

company, with approximately 3 000 employees and 39 offices in Norway and abroad.

The Company focuses on seven business areas: Buildings & Properties,

Transportation, Renewable Energy, Oil & Gas, Industry, Water & Environment and

Cities & Society. The Company has an operating history that spans more than a

century, with the inception of Norsk Vandbygningskontor in 1908.