Multiconsult

Earnings Release • Nov 2, 2022

Multiconsult third quarter 2022 - Continued good results and operational performance

Multiconsult third quarter 2022 - Continued good results and operational performance

Multiconsult ASA (OSE: MULTI)

Multiconsult's third quarter EBITA came in at NOK 67.8 million, which gives an

EBITA for the first nine months of 2022 of NOK 311.7 million. The EBITA margin

in the quarter was 7.7 per cent, and 10.2 per cent year to date. Solid

operational performance and a high activity level throughout the quarter

resulted in a growth in net operating revenues of 13.8 per cent to NOK 876.0

million. The organic revenue growth was 7.9 per cent driven by higher billing

rates, increased billing ratio and higher number of employees. The result is

impacted by restructuring in LINK Arkitektur Sweden and an income recognition on

insurance settlement of NOK 13.6 million in the quarter.

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The positive trend and strong market have continued throughout the quarter

despite the geopolitical instability, the increase in energy costs, and high

inflation. The overall market outlook for Multiconsult's services is expected to

remain good and stable with a solid activity level both in the public and

private sector, supported by a strong pipeline. Multiconsult holds a diversified

portfolio of ongoing projects and a stable and strong order backlog.

"In the third quarter of 2022, Multiconsult delivered a solid operational

performance and another strong quarter with a good result, increased order

intake, and revenue growth. Supported by a strong market and with increased

capacity from both acquired companies and organic growth we have succeeded with

a good start-up after the summer break." says Grethe Bergly, CEO of Multiconsult

ASA. "Overall, Multiconsult is well-positioned to benefit from positive market

dynamics, and I am pleased to see that Multiconsult's competence is sought after

by our clients in their challenges facing the current energy transition and the

green shift."

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Third quarter 2022

Net operating revenues came in at NOK 876.0 million (769.6), an increase of 13.8

per cent compared to the same quarter last year. The increase in net operating

revenues is partly impacted by revenues from acquired companies. Revenues from

the acquired Erichsen & Horgen group is only included in part of the comparable

period - September 2021. The growth is also impacted by an income recognition

from an insurance settlement of NOK 13.6 million. Compared to the same period

last year the organic growth in net operating revenues is estimated to 7.9 per

cent after adjusting for acquisitions and insurance settlement. Higher average

billing rates and higher billing ratio had a positive effect on net operating

revenues compared to the same quarter last year.

Operating expenses increased by 12.1 per cent to NOK 757.3 million (675.4).

Employee benefit expenses increased by 11.1 per cent compared to the same

quarter in 2021. The increase is mainly attributable to higher employee benefit

expenses caused by ordinary salary adjustment effective from 1 July, increased

manning level from acquisitions and net recruitment. Other operating expenses

increased to NOK 121.6 million (103.5) partly due to acquired companies with

higher office expenditure. In addition, other operating expenses increased in

general as business activities return to a normal post Covid-19 situation.

EBITDA was NOK 118.7 million (94.1), an increase of 26.1 per cent compared to

the same period last year, reflecting an EBITDA margin of 13.5 per cent (12.2)

in the quarter.

EBITA was NOK 67.8 million (46.0), reflecting an EBITA margin of 7.7 per cent

(6.0) in the quarter. EBITA and EBITDA was positively impacted by an income

recognition on insurance settlement.

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Year to date 2022

Net operating revenues increased by 12.0 per cent to NOK 3 062.6 million (2

735.4), when compared to the same period last year. The increase in net

operating revenues is positively impacted by revenues from acquired companies

and higher billing rates when compared to the same period last year. Billing

ratio came in at 70.7 per cent (70.3) and contributed positively to growth in

net operating revenues. Compared to the same period last year the organic growth

in net operating revenues is estimated to 4.0 per cent after adjusting for the

calendar effect, insurance settlement and acquisitions.

Operating expenses consists mainly of employee benefit expenses and other

operating expenses.  Reported operating expenses came in at NOK 2 598.8 million

(2 332.4), an increase of 11.4 per cent compared to same period last year.

Employee benefit expenses increased by 9.7 per cent compared to the same period

in 2021. The increase is mainly due to increased manning level from

acquisitions, net recruitment, and regular salary adjustment. Other operating

expenses increased to NOK 380.9 million (310.4) in the period mainly an effect

of added operating expenses from prior acquisitions such as office expenses. In

addition, other operating expenses including sales, marketing and travel

expenses increased as business activities return to a normal post Covid-19

situation.

EBITDA was NOK 463.8 million (403.1), an increase of 15.1 per cent compared to

the same period last year.

EBITA was NOK 311.7 million (259.1), an increase of 20.3 per cent y-o-y,

reflecting an EBITA margin of 10.2 per cent.

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The market outlook for Multiconsult's services is expected to remain good

supported by high activity level both in the public and private sector.

Opportunities in the pipeline are at a high level and the overall outlook for

the market in Multiconsult's four business areas remains generally strong.

Multiconsult experience a strong market in the traditional consultancy and

engineering market within the construction industry.

Multiconsult holds a diversified portfolio of ongoing projects and a stable and

strong order backlog. In Norway, Multiconsult is well positioned for several of

the large projects proposed in the Norwegian National Budget for 2023 and

expects to benefit from the growing market for long-term sustainable

transformation within all business areas. This is driven by ongoing initiatives

led by the industry and political initiatives both in Norway and abroad.

In the building and property market the trend for sustainable transformation and

rehabilitation continues with increased volume of projects related to energy

saving in buildings. The infrastructure market is expected to continue at a high

level. The National Budget 2023 shows a direction towards a lower infrastructure

investment level in a long-term perspective. The Energy market is foreseen to

increase due to the rise of energy demand and increasing energy costs. The

international hydropower market continues a positive path, projects are starting

up and new opportunities are recorded in the pipeline. The hydropower market in

Norway is mainly related to rehabilitation and energy optimalisation. The

announced tax increase related to hydropower and wind-power in the National

Budget 2023 has increased the uncertainty for new investments. The offshore wind

market is mainly related to early phase studies and generates opportunities for

Multiconsult. The maintenance lag in water- and wastewater infrastructure is

significant, which together with a growing market for climate change adaptations

and environmental remediation, indicates a good market outlook in this area. The

National Budget 2023 shows somewhat higher investments related to nature hazards

and climate change initiatives.

Multiconsult is exposed to the general uncertainty caused by a more unstable

macro- and geopolitical-environment and sees challenges with regards to the

proposed increase in employer's tax in the National Budget as this will increase

our costs.

For a full review of our report, please refer to our third quarter 2022 report.

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Presentations today 2 November 2022:

Participants are invited to attend the Norwegian presentation that will be held

at Felix Conference Centre, Bryggetorget 3, Oslo, at 08:30 (CET). The results

will also be presented through a live webcast: In Norwegian at 08:30 (CET) and

in English presentation at 09:30 (CET). Participants will have the opportunity

to submit questions online throughout the webcast sessions.

The Norwegian presentation at 08:30 can be accessed at:

https://channel.royalcast.com/landingpage/hegnarmedia/20221102_1/

The English presentation at 09:30 can be accessed at:

https://channel.royalcast.com/landingpage/hegnarmedia/20221102_2/ (https://channe

l.royalcast.com/landingpage/hegnarmedia/20221102_1/)

Live webcasts, complete report, presentation and a recording of the webcast will

be available on www.multiconsult-ir.com and https://newsweb.oslobors.no/

For further information, please contact:

Investor relations:

Ove B. Haupberg, CFO

Phone: +47 401 00 900

E-mail: oveb.haupberg@multiconsult.no

Media:

Gaute Christensen, VP Communications

Phone: +47 911 70 188

E-mail: gaute.christensen@multiconsult.no