Multiconsult — Investor Presentation 2016

Aug 23, 2016

SECOND QUARTER 2016 RESULTS

Christian Nørgaard Madsen, CEO | Anne Harris, CFO

Disclaimer

This presentation 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 presentation, 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 forward-looking 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 forwardlooking 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 presentation.

INTRODUCTION AND HIGHLIGHTS

Christian Nørgaard Madsen, CEO

Highlights

• Revenue increase of 28%
• mainly derived from LINK arkitektur AS and high activity
• Positive calendar effect in the quarter
• Earnings remain stable
• Continued improvement in the billing ratio
• Improved order backlog in a demanding market
• Large, strategic contract award for the new Tønsberg hospital
• NOK 2.9 per share dividend

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Important contract with Vestfold Hospital Trust

• Planning, design and site follow-up
• New Tønsberg hospital in Vestfold, Norway
• Significant contract for CURA group
• NOK 150-200 million within 2-3 years for CURA group
• 50% Multiconsult group including LINK arkitektur
• Top line synergy between engineering and architect services
• Award confirms Multiconsult and LINK arkitektur's position in the hospital market

Financial summary 2Q 2016

• Net operating revenue up 28% y-o-y to NOK 711 million
• LINK arkitektur contributed 17 pp of total growth
• Positive calendar effect of four days
• Stabilised billing rates at a lower level than last year
• Billing ratio up by 0.8 pp to 70.9% y-o-y
• EBIT of NOK 81 million, 11.4% margin
• Higher operating expenses in line with growth
• Improved contribution from subsidiaries

Key ongoing projects 2Q 2016

• Campus Ås
• Hydro Karmøy
• F35 Fighter Air Base
• Prinsensgate 26 Rehabilitation
• InterCity Haug Halden

Order intake 2Q 2016

Highlights

• Majority related to new contracts
• Order intake increased in a demanding competitive market
• Strong order intake in Transportation & Infrastructure
• Awarded contracts within all business areas

Key order intake

• Tønsberg hospital
• Campus Ås
• Bus transit lane, Stavanger
• Zanzibar Energy Sector Cons. Phase
• Radisson Blu Hotel Norge, Bergen

Order backlog development

• Stable backlog up 15% y-o-y to NOK 1 839 million
• Transportation & Infrastructure and Buildings & Properties highest contributors
• Call-offs on frame agreements, such as Fosen Wind included when signed

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Organisation

• Completed acquisition of Akvator AS
• Strengthened competence and capacity with 35 employees
  • Valuable expertise in fish farming
• Share sale agreement with Stiftelsen Multiconsult
• 550 000 Multiconsult shares
• For 2016 employee share purchase programme
• Stable organisation
• Employee turnover at 7.5%*

FINANCIAL REVIEW

Anne Harris, CFO

Financial highlights 2Q 2016

• NOK 711 million
• LINK arkitektur strong impact
• Calendar effects and billing ratio
• Certain project write-downs

• Stabilised billing rates

• Up by 0.8 pp to 70.9%

• YTD 70.0%

• Significant improvement in Regions Norway

• NOK 81 million

• 11.4% margin
• Operating expenses in line with growth

• Improved contribution from subsidiaries

• Up 26% to 2 222 employees y-o-y

• Acquisition of LINK arkitektur and Akvator AS
• Organic growth of 5%

Operating revenues by business area 2Q 2016

*Change y-o-y excluding LINK arkitektur was 13%

Segments 2Q 2016

Greater Oslo Area	2Q 2016	2Q 2015	Change
EBIT MNOK	51.4	47.2	9%
Billing Ratio	72.8%	72.5%	0.3 pp
Number of employees	854	806	6%

• High activity and continued good billing ratio

International	2Q 2016	2Q 2015	Change
EBIT MNOK	2.0	-1.0	>100%
Billing Ratio	62.8%	63.6%	0.8 pp
Number of employees	127	91	40%

• Improved revenue and activity in subsidiaries

• Project activity and earnings in MC UK has improved

Regions Norway	2Q 2016	2Q 2015	Change
EBIT MNOK	23.3	16.2	44%
Billing Ratio	70.5%	68.4%	2.1 pp
Number of employees	788	750	5%

• Significantly improved billing ratio drives increased earnings • LINK arkitektur improved earnings in Norway

Other Business	2Q 2016	2Q 2015	Change
EBIT MNOK	4.5	N/A	N/A
Billing Ratio	70.3%	N/A	N/A
Number of employees	337	N/A	N/A

• Improvement initiatives ongoing

Cash flows year to date 2016

• Cash balance remains positive
• Solid cash flow from operations
• Working capital increase due to higher activity:
• ─ Increased trade receivables and work in progress
• Investments
• Akvator AS acquisition
• Financing
• Dividend payment NOK 76.1 million

Market outlook

• Continued fairly robust market outlook
• Strong competition and price pressure
• Current market rates stabilising
• Continued focus on project execution and billing ratio
• Stable order backlog and valuable frame agreements
• foundation for continued growth
• Grønneviksøren legal process finalised and settled

Söder hospital, LINK arkitektur

FINANCIAL CALENDAR

Capital market day:	12 Oct 2016
3Q 2016 results:	8 Nov 2016
4Q 2016 results:	28 Feb 2017
1Q 2017 results:	22 May 2017
2Q 2017 results:	31 Aug 2017
3Q 2017 results:	9 Nov 2017

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