Multiconsult

Earnings Release • Aug 18, 2021

SECOND QUARTER AND HALF YEAR 2021 RESULTS

Grethe Bergly, CEO | Hans-Jørgen Wibstad, CFO

Date: 18 August 2021

DISCLAIMER

This report 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 notice, 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 forwardlooking 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 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 report.

INTRODUCTION AND HIGHLIGHTS GRETHE BERGLY | CEO

Highlights | 2Q and half year 2021

Highlights | 2Q and half year 2021

• Another period with good sales and continued good results
• Strategic acquisition of Erichsen & Horgen, a leading Norwegian engineering consultancy
• Strong position as a preferred employer confirmed in 2021 Universum survey
• Modest impact of the Covid-19 situation in the period, but still creating some uncertainty and delays
• Strong positioning within sustainability through presence and participation during "Arendalsuka"
• Stable or good market outlook in all business areas
• Order backlog at a high level

Order intake | 2Q 2021

Cities & Society Oil & Gas

Highlights

• Significant or strategically important contracts awarded this quarter
• Frame agreement with:
  • Sykehusbygg HF
  • Equinor
  • Statens vegvesen
• Bane NOR SF: Movatn and Hakadal railway stations
• Order intake up 4.2% y-o-y, to NOK 1 080 million
• Stable or good market outlook in all business areas

Key order intake in the quarter (sales)

• Movatn and Hakadal railway stations
• Museum of the Viking Age (Vikingtidsmuseet)
• NOA Krafla Power from Shore
• E39 Fjord Crossings Concept development of bridge concepts and preliminary projects
• NiN (Natur i Norge) nature diversity mapping

Order backlog | 2Q 2021

Note: Variations in time horizon and size across business areas and business units. In addition, call-offs on frame agreements to be included when signed

Organisation & People

• 2 927 employees as of 30 June 2021
• The planning of Erichsen & Horgen integration has started
• MUST summer student programme successful and popular
• 991 applicants for 70 positions
• According to Universum's 2021 Employer Attractiveness Ranking
• Multiconsult once again ranked number one among consulting engineers
• Number three among all engineering/natural science companies in Norway
• Strong commitment through Covid-19 period

FINANCIAL REVIEW HANS-JØRGEN WIBSTAD | CFO

Financial Highlights | 2Q 2021

• Net operating revenues NOK 986.8 million, an increase of 3.7% y-o-y
• EBIT of NOK 114.6 million, 11.6% margin
• Compared to the second quarter 2020 a calendar effect of three more working days in Norway
• Other operating expenses of NOK 107.2 million a y-o-y reduction of 1.1%
• Other opex* ratio reduced to 15.2% from 15.8% same period last year
• Billing ratio 72.0%, down 1.8pp from last year
• Order intake of NOK 1 080 million (NOK 1 037 million)

Consolidated key figures NOK million	2Q 2021	2Q 2020	Change	FY 2020
Net Operating Revenues	986.8	951.7	3.7 %	3 660.9
EBIT	114.6	102.5	11.8 %	371.0
EBIT margin %	11.6 %	10.8 %	0.8pp	10.1 %
Adjusted EBIT				401.0
Adjusted EBIT margin				11.0 %
Order intake	1 080	1 037	4.2 %	4 684
Order backlog	3 513	3 004	16.9 %	3 327
Billing ratio	72.0 %	73.8 %	(1.8pp)	70.9 %
Number of employees	2 927	2 931	(0.1 %)	2 925

Financial Highlights | First half 2021

• Net operating revenues NOK 1 965.9 million, an increase of 1.1% y-o-y
• EBIT of NOK 213.1 million, 10.8% margin
• Compared to the first half 2020 a calendar effect of one less working day in Norway
• Other operating expenses of NOK 206.9 million a y-o-y reduction of 5.2%
• Other opex* ratio reduced to 14.9% from 15.6% same period last year
• Billing ratio 71.6%, up 0.1pp from last year
• Order intake of NOK 2 461 million (NOK 2 342 million)
• High order backlog of NOK 3 513 million

Consolidated key figures NOK million	H1 2021	H1 2020	Change	FY 2020
Net Operating Revenues	1 965.9	1 945.3	1.1 %	3 660.9
EBIT	213.1	219.9	(3.1 %)	371.0
EBIT margin %	10.8 %	11.3 %	(0.5pp)	10.1 %
Adjusted EBIT				401.0
Adjusted EBIT margin				11.0 %
Order intake	2 461	2 342	5.1 %	4 684
Order backlog	3 513	3 004	16.9 %	3 327
Billing ratio	71.6 %	71.5 %	0.1pp	70.9 %
Number of employees	2 927	2 931	(0.1 %)	2 925

Financial Highlights | 2Q 2021

Segments

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

Region Oslo | First half 2021

• Net operating revenues NOK 610.8 million
• EBIT YTD was NOK 79.9 million reflecting an EBIT margin of 13.1%
• Second quarter: EBIT NOK 39.5 million (41.4), EBIT margin of 13.2% (13.7)
• Reduced other operating expense for the period, a y-o-y reduction of 8.2%
• Billing ratio 73.7%, down 0.9pp y-o-y
• Order intake of NOK 761.0 million, and order backlog 47.4% higher y-o-y

Region Oslo NOK million	H1 2021	H1 2020	Change	FY 2020
Net operating revenues	610.8	631.5	(3.3%)	1 175.7
EBIT	79.9	99.1	(19.3%)	186.1
EBIT margin %	13.1%	15.7%	(2.6pp)	15.8%
Order intake	761.0	595.6	27.8%	1 573
Order backlog	1 311	889.8	47.4%	1 256
Billing ratio	73.7%	74.5%	(0.8pp)	73.4%
Number of employees	755	775	(2.6%)	769

Region Norway | First half 2021

• Net operating revenues NOK 789.5 million
• EBIT was NOK 106.6 million reflecting an EBIT margin of 13.5%
• Second quarter: EBIT NOK 60.9 million (38.3), EBIT margin of 15.3% (10.4)
• Reduced other operating expenses for the period, a y-o-y reduction of 9.0%
• Billing ratio 69.9%, up 0.7pp y-o-y
• Order intake NOK 882.9 million, a decrease of 3.1% y-o-y

Region Norway NOK million	H1 2021	H1 2020	Change	FY 2020
Net operating revenues	789.5	758.0	4.1%	1 449.8
EBIT	106.6	81.2	31.3%	184.0
EBIT margin %	13.5%	10.7%	2.8pp	12.7%
Order intake	882.9	911.1	(3.1%)	1 557
Order backlog	638.6	694.8	(8.1%)	597.6
Billing ratio	69.9%	69.2%	0.7pp	69.9%
Number of employees	1 043	1 046	(0.3%)	1 033

Energy | First half 2021

• Net operating revenues of NOK 124.0 million
• EBIT was NOK 3.0 million reflecting an EBIT margin of 2.5%
• Second quarter: EBIT NOK 2.5 million (-1.1), EBIT margin of 4.0% (-1.7)
• Reduced other operating expenses for the period, a y-o-y reduction of 21.6%
• Billing ratio up 2.4pp y-o-y, to 64.3%

Energy NOK million	H1 2021	H1 2020	Change	FY 2020
Net operating revenues	124.0	134.9	(8.0%)	248.8
EBIT	3.0	2.3	29.6%	6.8
EBIT margin %	2.5%	1.7%	0.8pp	2.7%
Order intake	150.9	167.6	(10.0%)	334.2
Order backlog	305.6	263.5	16.0%	295.1
Billing ratio	64.3%	61.9%	2.4pp	61.3%
Number of employees	176	193	(8.8%)	186

LINK arkitektur | First half 2021

• Net operating revenues NOK 309.1 million
• EBIT was NOK 16.4 million reflecting an EBIT margin of 5.3%
• Second quarter: EBIT NOK 10.9 million (10.8), EBIT margin of 7.0% (7.1)
• Billing ratio up 0.8pp y-o-y, to 75.0%
• Order intake of NOK 328.8 million, and order backlog reduction 5.2% y-o-y
• The performance in LINK arkitektur Norway is at a good level in the period

LINK arkitektur NOK million	H1 2021	H1 2020	Change	FY 2020
Net operating revenues	309.1	303.4	1.9%	561.6
EBIT	16.4	17.6	(6.6%)	25.7
EBIT margin %	5.3%	5.8%	(0.5pp)	4.6%
Order intake	328.8	403.4	(18.5%)	745.2
Order backlog	594.3	627.0	(5.2%)	637.7
Billing ratio	75.0%	74.2 %	0.8pp	73.6%
Number of employees	483	486	(0.6%)	487

International | First half 2021

• Net operating revenues of NOK 123.7 million
• EBIT was NOK 12.4 million reflecting an EBIT margin of 10.1%
• Second quarter: EBIT NOK 7.4 million (8.3), EBIT margin of 11.8% (12.7)
• Order intake up 27.6% y-o-y, to NOK 337.3 million
• Reduced other operating expenses for the period, a y-o-y reduction of 19.2%
• In general, a translation effect of the currency cross PLN/NOK when compared y-o-y
• negative effect on net operating revenue
• positive effect on operating expenses International

NOK million	H1 2021	H1 2020	Change	FY 2020
Net operating revenues	123.7	126.8	(2.5%)	242.5
EBIT	12.4	14.8	(16.0%)	24.8
EBIT margin %	10.1%	11.7%	(1.6pp)	10.2%
Order intake	337.3	264.3	27.6%	474.6
Order backlog	738.4	565.1	30.7%	586.8
Billing ratio	75.3%	79.0%	(3.7pp)	74.9%
Number of employees	341	303	12.5%	321

Operating revenues by business area | First half 2021

Financial Position | First half 2021

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

• Strong Balance Sheet position, net debt free
• Total undrawn loan facilities NOK 520 million
• Increased post period to NOK 770 million
• Change in working capital negative NOK 114.4 million vs. NOK 26.4 million same period 2020
• Dividend of NOK 215.4 million paid in the period

Erichsen & Horgen

	Founded	1925
	Employees	235
	Revenue	NOK 331.3 million (2020)
	EBITDA	NOK 42.3 million (2020)
	EBIT	NOK 31.3 million (2020)
	Net profit (after tax)	NOK 24.3 million
	Main office	Oslo
	Offices	Trondheim, Drammen Skien, Lillehammer

Subsidiary Malnes og Endresen AS

Market leading position within building service - HVAC, Energy and Environment in Norway

Preferred partner for construction clients, multidisciplinary engineering firms and contractors

Particularly strong position within public buildings and private commercial buildings

Strong position within health facilities and laboratories and significant order backlog in this area

Revenues CAGR of 18% and an average EBITDA-margin of 10 per cent since 2016

Highly skilled, experienced, diverse and committed workforce unified by a strong corporate culture

Erichsen & Horgen

Erichsen & Horgen

We are already good together…

• New hospital at Gaustad (nye Rikshospitalet)
• Campus Ås
• New Tønsberg hospital
• New Drammen hospital
• Barcode Bjørvika
• Munch Museum
• and many other projects

…and together we will be stronger

New opportunities

… together new opportunities are created

• A leading Norwegian-owned constellation
• Strengthen attractiveness and competitiveness in the market

• 1 position HVAC, energy and environment

• A strong position for further growth and development within other business areas

… to provide growth and synergies in several areas

Outlook

• Multiconsult will together with Erichsen & Horgen continue to leverage on a strong market position and its flexible business model
• Increased focus towards a more sustainable and circular approach
• The pandemic still creates uncertainty in the short term
• The market is expected to stabilise further with the vaccination now coming into effect
• High order backlog
• Overall good or stable market outlook in all business areas

Capital Markets Day 3 November 2021

FINANCIAL CALENDAR
3Q 2021 results and CMD	3 Nov 2021
4Q 2021 results	10 Feb 2022
1Q 2022 results	4 May 2022
2Q 2022 results	17 Aug 2022
3Q 2022 results	2 Nov 2022

Q&A SECOND QUARTER AND HALF YEAR 2021 RESULTS

GRETHE BERGLY & HANS-JØRGEN WIBSTAD