Multiconsult

Earnings Release • Feb 10, 2022

Multiconsult - Solid fourth quarter and full year result

Multiconsult - Solid fourth quarter and full year result

Multiconsult ASA (OSE: MULTI) fourth quarter EBIT came in at NOK 89.8 million,

which gives an EBIT for the full year of NOK 348.9 million. The EBIT margin in

the quarter was 8.4 per cent, and 9.2 per cent for the full year 2021. In the

fourth quarter net operating revenues increased 10.5 per cent y-o-y mainly

driven by M&A activities.

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

good and stable across all five business areas. A high activity level is

expected in both the public and private sector. Furthermore, increased spending

is expected on infrastructure, and the growing market for sustainability and

solutions connected to the "green shift". At the beginning of 2022 we have

experienced good sales.

The board of directors proposes a dividend of NOK 6.00 per share to be paid as

ordinary dividend for 2021.

"I am pleased that we deliver solid profitability, good sales and maintain a

strong market position in the fourth quarter, and in 2021 as a whole.  Through

important strategic acquisitions we have strengthened our market position and

our capabilities to offer our customers the best solutions. In a year impacted

by the Covid-19 pandemic, I would particularly like to thank our employees for

their dedication and efforts in dealing with the challenges caused by the

pandemic, and extensive home office situation. Looking forward, we see a high

activity level and increased opportunities in providing solutions to support our

clients in the "green shift" and developing sustainable solutions. We will

continue our growth journey, leveraging on our strong business platform, solid

market position and client base - combined with highly skilled people and strong

partnerships." says Grethe Bergly, CEO of Multiconsult ASA.

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Fourth quarter 2021

Net operating revenues increased by 10.5 per cent to NOK 1068.3 million (967.1).

The increase in net operating revenues reflects higher production due to the

acquisition of the Erichsen & Horgen group. Compared to the same period last

year the organic growth in net operating revenues was 2.4 per cent. The net

operating revenues was impacted by lower billing ratio of 0.5pp, which came in

at 70.5 per cent (71.0). A higher shorth-term sick leave compared to the same

period last year is a contribution factor to the lower billing ratio.

Operating expenses increased by 11.0 per cent to NOK 928.5 million (836.6).

Employee benefit expenses increased by 7.8 per cent compared to the same quarter

in 2020, and is mainly caused by ordinary salary adjustment, increased manning

level from acquisitions and net recruitment. Other operating expenses increased

to NOK 139.1 million (104.4). The changes from the same period last year are

partly an effect of higher IT cost, certain periodic effects, and operating

expenses from Erichsen & Horgen.

EBITDA was NOK 139.8 million (130.5), an increase of 7.1 per cent compared to

the same period last year, reflecting an EBITDA margin of 13.1 per cent (13.5)

in the period.

EBITA amounted to NOK 91.0 million (83.0), reflecting an EBITA margin of 8.5 per

cent (8.6) in the period.

EBIT amounted to NOK 89.8 million (83.0), an increase of 8.2 per cent y-o-y,

reflecting an EBIT margin of 8.4 per cent (8.6) in the period.

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Full year 2021

Compared to last year, net operating revenues increased by 3.9 per cent to NOK 3

803.7 million. The increase is mainly an effect from the acquisition of Erichsen

& Horgen group and net recruitment. Adjusted for acquisitions, organic growth

was 1.1 per cent. Billing ratio came in at 70.4 per cent, a reduction of 0.5pp

compared to 2020.

Operating expenses increased by 6.5 per cent to NOK 3 260.9 million (3 062.2)

driven by a 5.7 per cent increase in employee benefit expenses due to new

employees from acquisitions, net recruitment and ordinary salary adjustment.

Other operating expenses increased by 11.8 per cent to NOK 449.5 million

(402.2), partly caused by operating expenses from acquired companies and by

higher IT cost in general.

EBITDA was NOK 542.8 million (598.7), a decrease of 9.3 per cent compared to

last year, reflecting an EBITDA margin of 14.3 per cent (16.4) for the year.

EBITA was NOK 350.5 million (371.0), reflecting an EBITA margin of 9.2 percent

(10.1).

EBIT was NOK 348.9 million (371.0), a decrease of 6.0 per cent y-o-y, reflecting

an EBIT margin of 9.2 percent (10.1).

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

good and stable across all five business areas. A high activity level is

expected in both the public and private sector. Furthermore, increased spending

is expected on infrastructure and growing market for sustainability and

solutions connected to the "green shift". The potential opportunities in the

pipeline are also at a good level in most business areas, and we have

experienced good sales in the beginning of 2022.

In the short term, the Covid-19 situation may particularly impact short-term

sick leave, which has been experienced in recent months.  Furthermore, there is

a higher than normal short-term risk of potential delays in certain projects,

mainly caused by increased cost in the building- and construction sector.

The recent acquisitions, strong portfolio of ongoing projects and a solid order

backlog provides Multiconsult with an overall good foundation going into 2022.

For a full review of our report, please refer to our Fourth quarter 2021 report.

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Presentation

The Norwegian presentation will be held at Felix Conference Centre, Bryggetorget

3, Oslo, at 08:30 (CET) and participants is invited to attend the presentation.

The presentations will be held by CEO Grethe Bergly and CFO Hans-Jørgen Wibstad.

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 (CET) can be accessed at:

https://channel.royalcast.com/landingpage/hegnarmedia/20220210_1/

The English presentation at 09:30 (CET) can be accessed at:

https://channel.royalcast.com/landingpage/hegnarmedia/20220210_2/ (https://channe

l.royalcast.com/landingpage/hegnarmedia/20220210_1/)

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

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

For further information, please contact:

Investor relations:

Hans-Jørgen Wibstad, CFO

Phone: +47 916 89 661

E-mail: hans-jorgen.wibstad@multiconsult.no

Media:

Gaute Christensen, VP Communications

Phone: +47 911 70 188

E-mail: gaute.christensen@multiconsult.no