Multiconsult

Earnings Release • Feb 8, 2023

Multiconsult fourth quarter and full year 2022 - good profitability, revenue growth, record high sales

Multiconsult fourth quarter and full year 2022 - good profitability, revenue growth, record high sales

Multiconsult ASA (OSE: MULTI)

The positive trend and strong market development continued in the last quarter

of 2022. Multiconsult ended the year with a solid quarter with an EBITA of NOK

96.8 million, a margin of 8.6 per cent. EBITA for the year came in at NOK 408.5

million, a margin of 9.8 per cent. Net operating revenues grew by 5.5 per cent

year-on-year to NOK 1 126.7 in the quarter, and by 10.1 per cent to NOK  4 189.2

for the year. The organic revenue growth for the quarter was 5.5 per cent. The

result is impacted by a weak result in LINK Arkitektur.

The board of directors proposes a dividend of NOK 9.00 per share to be paid as

ordinary dividend for 2022.

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An all-time high order intake of NOK 1 559 million in the fourth quarter

provides a strong and diversified order backlog going into 2023. Higher

operating expenses compared to last year is driven by an increase in employees

from acquisitions and other operating expenses as business activities return to

a normal post Covid-19 situation. The acquisition of Roar Jørgensen AS was

successfully completed in the quarter and strengthens Multiconsult's competence

and market position in a new geographical area.

"We can look back at a solid quarter with good profitability, revenue growth,

record high sales and a record high order backlog. I am satisfied that we have

stabilised at a good and sustainable profitability level over time. Strong sales

in the quarter indicates that our employees' expertise is in demand and that our

services are attractive for our clients. Our solid and diversified portfolio of

ongoing projects gives a good foundation for further business and growth, in a

somewhat more challenging market. I am grateful to our skilled and dedicated

employees for their contribution to this result", says Grethe Bergly, CEO

Multiconsult.

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FOURTH QUARTER 2022

Net operating revenues came in at NOK 1 126.7 million (1 068.3), an increase of

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

operating revenues is driven by an increase in the number of employees and

higher billing rate. The growth in net operating revenues was offset by a

slightly lower billing ratio of 0.2pp, which came in at 70.3 per cent (70.5).

Operating expenses consist of employee benefit expenses and other operating

expenses. Operating expenses increased by 5.6 per cent to NOK 980.3 million

(928.5) compared to the same quarter in 2021. Employee benefit expenses

increased by 5.5 per cent due to ordinary salary adjustment, increased manning

level from acquisitions and net recruitment. Other operating expenses increased

to NOK 147.2 million (139.1) an increase of 5.8 per cent compared to fourth

quarter 2021. Business activities were somewhat influenced with the Covid-19

situation in the comparable quarter 2021.

EBITDA was NOK 146.4 million (139.8), an increase of 4.7 per cent compared to

the same period last year, reflecting an EBITDA margin of 13.0 per cent (13.1)

in the quarter.

EBITA was NOK 96.8 million (91.0), reflecting an EBITA margin of 8.6 per cent

(8.5) in the quarter.

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PRELIMINARY FULL YEAR 2022

Net operating revenues increased by 10.1 per cent to NOK 4 189.2 million (3

803.7). The growth in net operating revenues is driven by increase in billing

rates, revenue from acquired companies and increase in manning level. Organic

growth in net operating revenues is estimated to 4.4 per cent after adjusting

for the calendar effect and acquisitions.

Operating expenses came in at NOK 3 579.1 million (3 260.9), an increase of 9.8

per cent compared to last year. Employee benefit expenses increased by 8.5 per

cent. The increase is mainly due to increased manning level from acquisitions,

net recruitment, and regular salary adjustment. Other operating expenses

increased by 17.5 per cent to NOK 528.1 million (449.5), 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 610.2 million (542.8), reflecting an EBITDA margin of 14.6 per

cent (14.3).

EBITA was NOK 408.5 million (350.5), an increase of 16.5 per cent y-o-y,

reflecting an EBITA margin of 9.8 per cent (9.2).

Reported profit for the period was NOK 303.0 million (234.7). Profit for the

period is positively impacted by share of profit from the associated company

Norplan Tanzania Ltd. Earnings per share for the period were NOK 11.06 (8.67).

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OUTLOOK

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

in Multiconsult's four business areas remains generally strong.

Multiconsult has not been negatively affected by the revised Norwegian National

Budget for 2022 and Multiconsult is well positioned in several of the large

projects granted in the National Budget for 2023.

Multiconsult 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.

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

backlog provides Multiconsult with an overall good foundation going into 2023.

Multiconsult have experienced good sales in the beginning of 2023.

For a full review of outlook and report, please refer to our fourth quarter 2022

report.

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Presentations today 8 February 2023:

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/20230208_1/

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

https://channel.royalcast.com/landingpage/hegnarmedia/20230208_2/ (https://channe

l.royalcast.com/landingpage/hegnarmedia/20230208_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:

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

Multiconsult is one of the leading firms of consulting engineers and designers

in Norway. The company delivers multidisciplinary consulting and design, project

engineering and management, verification, inspection and supervision - to

customers in Norway and abroad, focusing on the following sectors: buildings &

properties, industry, oil & gas, transportation & infrastructure, energy,

environment & natural resources. Visit www.multiconsultgroup.com for more

information.