Quarterly Report • Aug 18, 2021
Quarterly Report
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"Solid operational performance has been the foundation for continued good results in the first half of 2021, and I would like to thank our employees for their dedication and commitment in a continued challenging environment. We are excited about the important and strategic acquisition of Erichsen & Horgen that was completed mid-August. We have a long history of successful collaboration based on trust and mutual respect. Together we will bring our leading solutions to the next level to the benefit of our customers, employees and all stakeholders. Going into the second half of 2021, we will continue to focus on our core business and keep a strong customers focus, as well as securing a successful integration of Erichsen & Horgen as an important enabler for continued growth."
Grethe Bergly CEO of Multiconsult ASA
| Amounts in NOK million (except EPS and percentage) | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 |
|---|---|---|---|---|
| FINANCIAL | ||||
| Net operating revenues | 986.8 | 951.7 | 1 965.9 | 1 945.3 |
| Employee benefit expenses | 717.3 | 690.9 | 1 450.0 | 1 406.9 |
| Other operating expenses | 107.2 | 108.4 | 206.9 | 218.4 |
| EBITDA | 162.3 | 152.3 | 309.0 | 320.0 |
| EBITDA margin | 16.5% | 16.0% | 15.7% | 16.5% |
| EBIT | 114.6 | 102.5 | 213.1 | 219.9 |
| EBIT margin | 11.6% | 10.8% | 10.8% | 11.3% |
| Reported profit for the period | 78.1 | 65.9 | 144.7 | 150.0 |
| Earnings per share (EPS) | 2.90 | 2.44 | 5.37 | 5.56 |
| OPERATIONAL | ||||
| Other opex ratio (ex. IFRS 16) | 15.2% | 15.8% | 14.9% | 15.6% |
| Billing ratio | 72.0% | 73.8% | 71.6% | 71.5% |
| Number of employees | 2 927 | 2 931 | 2 927 | 2 931 |
| Order intake | 1 080 | 1 037 | 2 461 | 2 342 |
| Order backlog | 3 513 | 3 004 | 3 513 | 3 004 |
Multiconsult second quarter EBIT came in at NOK 114.6 million, which gives an EBIT for the first half of 2021 at NOK 213.1 million. The EBIT margin in the quarter was 11.6 per cent, and 10.8 per cent in the first half 2021. In the second quarter net operating revenues was NOK 986.8 million up 3.7 per cent y-o-y, while other operating expenses were down 1.1 per cent to 107.2 million.
The foundation for continued good results in the first half of 2021 has been solid operational performance. The order intake has been good with sales of NOK 1 080 million in the second quarter, which gives a stable order backlog of NOK 3 513 million. The strategic acquisition of leading engineering consultancy Erichsen & Horgen is an important milestone for continued growth that paves way for further value creation in Multiconsult.
Multiconsult group ("Multiconsult" or "the group") comprises Multiconsult ASA ("parent company" or "company") and all subsidiaries and associated companies. (Figures in brackets = same period prior year or relevant balance sheet date 2020).
Net operating revenues came in at NOK 986.8 million (951.7) an increase of 3.7 per cent compared to the same period last year. There is a positive effect from three more working days when comparing to the same period last year. The growth was offset by lower billing ratio of 72.0 per cent (73.8), a decrease of 1.8pp.
Operating expenses consist mainly of employee benefit expenses and other operating expenses. Total operating expenses increased by 3.1 per cent to NOK 824.5 million (799.4). Employee benefit expenses increased by 3.8 per cent compared to the same quarter in 2020. The increase in employee benefit expenses is in line with ordinary salary adjustment. There was a significant impact on lower social security costs in the second quarter of 2020 of NOK 13.3 million due to Covid-19 relief by the governments. Other operating expenses decreased by 1.1 per cent to NOK 107.2 million (108.4), partly an effect from the nextLEVEL improvement programme.
EBITDA was NOK 162.3 million (152.3), an increase of 6.6 per cent compared to the same period last year, reflecting an EBITDA margin of 16.5 per cent (16.0) in the period.
EBIT was NOK 114.6 million (102.5), reflecting an EBIT margin of 11.6 per cent (10.8) in the period.
Net financial items were an expense of NOK 9.5 million (14.9). The improvement is mainly related to currency gains compared to second quarter 2020.
Group tax rate was 25.2 per cent (23.9).
Reported profit for the period was NOK 78.1 million (65.9).
Calendar effect: In the second quarter of 2021 there are, on average, three more working days than in the second quarter of 2020. This had an estimated positive impact of NOK 45 million on net operating revenues and EBIT etc. for the group when comparing the two quarters.
Net operating revenues increased by 1.1 per cent to NOK 1 965.9 million (1 945.3). Billing ratio came in at 71.6 per cent which is a small improvement when compared to the first half of 2020. There was a calendar effect of one less working day that impacted net operating revenues negatively with NOK 11.2 million.
Operating expenses increased by 1.9 per cent to NOK 1 656.9 million (NOK 1 625.3 million) driven by an increase in employee benefit expenses due to regular salary adjustment for the workforce and lower social security costs in the first half of 2020. Other operating expenses decreased by 5.2 per cent to NOK 206.9 million, a reduction of NOK 11.5 million compared to same period last year, partly an effect from the nextLEVEL improvement programme.
EBITDA was NOK 309.0 million (320.0), a decrease of 3.5 per cent compared to the same period last year.
EBIT was NOK 213.1 million (219.9), a decrease of 3.1 per cent y-o-y, reflecting an EBIT margin of 10.8%.
Net financial items were an expense of NOK 21.9 million (21.6 million).
Group tax rate was 24.3 per cent (23.6).
Reported profit for the period was NOK 144.7 million (150.0).
Calendar effect: In the first half of 2021 there is, on average, one less working day than in the first half of 2020. This had an estimated negative impact of NOK 11 million on net operating revenues and EBIT etc. for the group when comparing the two periods.
Total assets amounted to NOK 2 574 million (2 783 Mar 2021), and total equity amounted to NOK 698.9 million (826.0 Mar 2021). The group held cash and cash equivalents of NOK 66.4 million (297.9 Mar 2021).
Net interest-bearing liabilities amounted to NOK 745.7 million (545.7 Mar 2021). Adjusted for IFRS 16 lease obligations, net interest-bearing debt is negative NOK 81.9 million (negative 312.7 Mar 2021).
The order backlog at the end of the second quarter 2021 remains solid at NOK 3 513 million (3 004), an increase of 16.9 per cent compared to the end of second quarter last year. Business areas Buildings & Properties and Transportation holds the largest proportion of the order backlog. All business areas except Buildings & Properties have seen an increase in the order backlog. The size and timing of execution of the order backlog varies significantly between the business areas and locations. Order backlog does not reflect the total expected volume related to frame agreements and includes only calloffs that have been signed under these agreements.
Order intake during the quarter was NOK 1 080 million an increase of 4.2 per cent compared to the second quarter last Net cash flow from operating activities was positive NOK 37.3 million (293.6). Net cash flow from operating activities is affected by change in working capital.
Net cash flow used in investment activities was NOK 16.8 million (3.4) in the second quarter of 2021. Ordinary asset replacement amounted to NOK 16.2 million.
Net cash flow from financing activities amounted to negative NOK 253.9 million (negative NOK 115.6 million) which is affected by paid dividends and instalments on lease liabilities.
Net cash flow from operating activities was positive NOK 116.1 million (341.6) in the period. Net cash flow from operating activities is affected by change in working capital.
Net cash flow used in investment activities was NOK 28.5 million (13.9). Ordinary asset replacement amount to NOK 22.8 million, and NOK 6.0 million relates to the strategic investment in the joint venture with Argeo AS.
Net cash flow from financing activities amounted to negative NOK 296.7 million (negative NOK 167.0 million) which is mainly affected by paid dividend and instalments on lease liabilities.
year. Among significant sales or contracts awarded in the second quarter were:
There is an increase in use of frame agreements in the industry. Several new frame agreements were awarded during the quarter from Sykehusbygg HF, Equinor, Statens vegvesen and a number of other public and private clients.
Multiconsult's reporting segments are presented as five segments, Region Oslo, Region Norway, Energy, LINK arkitektur and International.
This segment offers services in all seven business areas and comprises the Oslo region, and Large Projects in Norway.
| Amounts in NOK million | Q2 2021 |
Q2 2020 |
H1 2021 |
H1 2020 |
|---|---|---|---|---|
| Net operating revenues | 299.2 | 301.9 | 610.8 | 631.5 |
| EBIT | 39.5 | 41.4 | 79.9 | 99.1 |
| EBIT% | 13.2% | 13.7% | 13.1% | 15.7% |
| Order intake | 297.3 | 258.1 | 761.0 | 595.6 |
| Order backlog | 1 311.4 | 889.8 1 311.4 | 889.8 | |
| Billing ratio | 74.3% | 76.6% | 73.7% | 74.5% |
| Number of employees | 755 | 775 | 755 | 775 |
Net operating revenues came in at NOK 299.2 million (301.9) a decrease of 0.9 per cent compared to the same period last year. The decrease in net operating revenues was driven by lower billing ratio which decreased to 74.3% (76.6%). A net reduction in manning level of 20 employees y-o-y and and lower average billing rates have a negative effect on net operating revenue. The y-o-y decrease is partly offset by a positive calendar effect of three more working days in the period.
Operating expenses came in 0.3 per cent lower than in the same period in 2020. Employee benefit expenses increased in line with ordinary salary adjustment and one-time costreducing effects related to Covid-19 in the comparable period last year. Other operating expenses decreased significantly, due to reduced administrative staff and shared service cost compared to same period 2020.
Order intake in the second quarter increased by 15.1 per cent compared to same period in 2020. The growth is driven by an increase in the business areas Buildings & Properties, Oil & Gas and Renewable Energy. The increase was partly offset by a reduction in the business area Transportation compared to the same period last year.
Order backlog for the segment at the end of the second quarter was NOK 1 311 million, an increase of 47.4 per cent compared to the same period last year. More than 80 per cent of the total order backlog for the segment is held by the business areas Buildings & Properties, Transportation and Water & Environment. Order backlog decreased by 4.1 per cent from first quarter 2021.
Net operating revenues for the period came in at NOK 610.8 million (631.5) a decrease of of 3.3 per cent compared to the first half of 2020. The decrease in revenue was partly driven a lower billing ratio that came in at 73.7 per cent (74.5), 0.8pp. lower than in the comparable period last year. Net reduction in mannig level and one less working day compared to the same period in 2020 also contribuded to the negative development.
Operating expenses came in 0.2 per cent lower than in the same period in 2020. Employee benefit expenses increased in line with ordinary salary adjustment and one-time costreducing effects related to Covid-19 in the comparable period last year. Other operating expenses decreased by 8.2 per cent due to reduced costs on general expenditures, administrative staff and shared services compared to same period 2020.
Order intake in the first half of the year increased by 27.8 per cent compared to the first half in 2020. In the three biggest business areas; Buildings & Properties, Transportation and Water & Environment there was a increase in the order intake. There was an increase in the smaller business areas Industry and Oil and Gas that contributes to the increase in the order intake for the period.
This segment offers services in all seven business areas and comprises all offices outside Oslo with presence in all larger cities and several other locations in Norway.
| Amounts in NOK million | Q2 2021 |
Q2 2020 |
H1 2021 |
H1 2020 |
|---|---|---|---|---|
| Net operating revenues | 398.7 | 367.0 | 789.5 | 758.0 |
| EBIT | 60.9 | 38.3 | 106.6 | 81.2 |
| EBIT% | 15.3% | 10.4% | 13.5% | 10.7% |
| Order intake | 432.4 | 349.7 | 882.9 | 911.1 |
| Order backlog | 638.6 | 694.8 | 638.6 | 694.8 |
| Billing ratio | 70.6% | 72.2% | 69.9% | 69.2% |
| Number of employees | 1 043 | 1 046 | 1 043 | 1 046 |
Net operating revenues came in at NOK 398.7 million (367.0) an increase of 8.7 per cent compared to the same period last year. Billing ratio was 70.6 per cent (72.2), 1.6pp. lower than the comparable period last year and contributed negatively to net operating revenue. The calendar effect of three more working days and higher average billing rates for the segment had a positive impact on revenues when comparing with the same quarter in 2020.
Operating expenses came in 2.9 per cent higher than in the same period in 2020. Employee benefit expenses increased due to ordinary salary adjustment, and one-time costreducing effects related to Covid-19 in the comparable period last year. Other operating expenses decreased by 7.4 per cent, due to reduced costs on general expenditures, compared to same period in 2020.
Order intake in the quarter came in at NOK 432.4 million, an increase of 23.6 per cent to compared to second quarter last year. Order intake increased in all seven business areas.
Order backlog for the segment at the end of the period was at NOK 638.6 million. The order backlog decreased by 8.1 per cent compared to the same period in 2020. More than 80 per cent of the total order backlog for the segment is held by the business areas Buildings & Properties, Transportation and Industry. All business areas except Oil & Gas decreased their order backlog compared to the same period last year. Order backlog increased by 0.7 per cent from first quarter 2021.
Net operating revenues increased by 4.1 per cent compared to the first half of 2020. Billing ratio increased by 0.7pp. and average billing rates for the segment are higher than in the same period last year and contributes to the growth in net operating revenues. Compared to the same period last year there was one less working day.
Operating expenses increased by 0.8 per cent in the period. Employee benefit expenses increased by 3.4 percent in line with regular salary adjustment and on lower social security costs in the comparable period last year. Other operating expenses decreased by 9.0 per cent due to reduced costs on general expenditures, compared to same period in 2020.
Order intake decreased by 3.1 per cent compared to the first half of 2020 driven by a reduction in the business areas Buildings & Properties and Transportation. All other business areas increased their order intake compared to the same period last year.
The segment offers national and international services in the business area Renewable Energy with some activity in Water & Environment and include the subsidiary Multiconsult UK.
| Q2 | Q2 | H1 | H1 | |
|---|---|---|---|---|
| Amounts in NOK million | 2021 | 2020 | 2021 | 2020 |
| Net operating revenues | 62.5 | 65.3 | 124.0 | 134.9 |
| EBIT | 2.5 | (1.1) | 3.0 | 2.3 |
| EBIT% | 4.0% | (1.7%) | 2.5% | 1.7% |
| Order intake | 53.0 | 79.0 | 150.9 | 167.6 |
| Order backlog | 305.6 | 263.5 | 305.6 | 263.5 |
| Billing ratio | 65.3% | 65.0% | 64.3% | 61.9% |
| Number of employees | 176 | 193 | 176 | 193 |
Net operating revenues came in at NOK 62.5 million (65.3) a decrease of 4.2 per cent compared to the same period last year. Billing ratio contributed positively at 65.3 per cent (65.0), 0.3pp. higher than same quarter last year. Lower average billing rate and a net reduction in manning level of 17 employees y-o-y have a negative effect on net operating revenue. The reduction in the number of employees was made to align the capacity with demand. The calendar effect of three more working days had a positive impact on revenues when comparing with the same quarter in 2020.
Operating expenses came in 9.5 per cent lower than in the same period in 2020. Employee benefit expenses decreased by 2.3 per cent driven by a net reduction in the number of employees. Other operating expenses decreased by 28.3 per cent, due to reduced costs on general expenditures, administrative staff and shared services compared to the same period in 2020.
Order intake in the first quarter came in at NOK 53.0 million a decrease of 32.9 per cent compared to the same quarter last year.
Order backlog was at NOK 305.6 million at the end of the period. The order backlog increased by 16.0 per cent compared to the same period last year. The business segment has experienced some start-up issues in international projects due to local political- and Covid-19 constraints. Order backlog decreased by 5.2 per cent from first quarter 2021.
Compared to the first half of 2020 net operating revenues decreased by 8.0 per cent on a lower manning level. A net reduction in manning level and lower average billing rates for the segment is the main drivers for the negative effect on net operating revenue. Billing ratio contributed positively at 64.3 per cent (61.9), 2.4pp. higher than same period last year. The growth was mainly driven by higher billing rate, partly offset by lower billing ratio.
Operating expenses decreased by 8.5 per cent in the period compared to the first half of 2020. Employee benefit expenses was reduced by 4.1 per cent on a net reduction in manning level. Other operating expenses decreased by 21.6 per cent, due to reduced costs on general expenditures, administrative staff and shared services compared to the same period in 2020.
The performance from Energy in Norway is at a satisfying level in the first half of 2021, however, Multiconsult UK is in a challenging market and is loss-making, but is improving compared to the same period last year.
Order intake in the period decreased by 10.0 per cent compared to the first half 2020.
This segment comprises LINK arkitektur with its 15 offices in Norway, Sweden and Denmark.
| Amounts in NOK million | Q2 2021 |
Q2 2020 |
H1 2021 |
H1 2020 |
|---|---|---|---|---|
| Net operating revenues | 156.5 | 152.4 | 309.1 | 303.4 |
| EBIT | 10.9 | 10.8 | 16.4 | 17.6 |
| EBIT% | 7.0% | 7.1% | 5.3% | 5.8% |
| Order intake | 156.9 | 249.8 | 328.8 | 403.4 |
| Order backlog | 594.3 | 627.0 | 594.3 | 627.0 |
| Billing ratio | 75.1% | 75.0% | 75.0% | 74.2% |
| Number of employees | 483 | 486 | 483 | 486 |
Net operating revenues came in at NOK 156.5 million (152.4) an increase of 2.7 per cent compared to the second quarter last year. Billing ratio of 75.1 per cent in the quarter is 0.1pp. higher than the same quarter last year and contribute to the growth in net operating revenue. Number of employees is at approximately the same level during the period, however there is an increase in billable hours which has a positive effect on net operating revenue. Lower average billing rate for the segment have a net negative effect on operating revenue compared to the same period last year. The calendar effect (three days in Norway, one in Sweden) in the period has a positive impact on revenues when compared to same period last year.
Total operating expenses came in 3.6 per cent higher than in the same period in 2020. Employee benefit expenses increased in line with ordinary salary adjustment, and one-time cost-reducing effects related to Covid-19 in the comparable period last year. Other operating expenses was at a higher level compared to the same period 2020.
Order intake in the second quarter was NOK 156.9 million, a decrease of 37.2 per cent compared to the same period last year. Link arkitektur offers services mainly in the business area Buildings & Properties, the decrease in the order intake was driven by a decrease in this business area.
Order backlog was NOK 594.3 million at the end of the quarter. The order backlog decreased by 5.2 per cent compared to the same period last year and decreased by 4.4 per cent from first quarter 2021.
Net operating revenues for the period came in at NOK 309.1 million (303.4) an increase of of 1.9 per cent compared to the first half of 2020. Billing ratio increased by 0.8pp. and contributes to the growth in net operating revenues. Number of employees is at approximately the same level during the period, however due to temporary leave related to Covid-19 pandemic last year these employees are no longer on temporary leave – resulting in an increase in billable hours which has a positive effect on net operating revenue. Average billing rates for the segment are lower than in the same period last year and have negative effect on net operating revenue.
Operating expenses increased by 3.2 per cent in the period. Employee benefit expenses increased on ordinary salary adjustment and higher activity offset by one-time costreducing effects related to Covid-19 in the comparable period last year. Other operating expenses was at a higher level compared to the same period 2020.
The financial performance in LINK arkitektur in Norway was at a good level in the first half of 2021, both the businesses in Sweden and Denmark are facing a more challenging market situation and are loss-making in the period.
Order intake in the first half 2021 came in at NOK 328.8 million, a decrease of 18.5% compared to first half in 2020. The decrease was supported by a number of large projects awarded in the compareable period last year.
This segment comprises the subsidiaries Multiconsult Polska and Iterio AB in Sweden.
| Amounts in NOK million | Q2 2021 |
Q2 2020 |
H1 2021 |
H1 2020 |
|---|---|---|---|---|
| Net operating revenues | 62.2 | 65.6 | 123.7 | 126.8 |
| EBIT | 7.4 | 8.3 | 12.4 | 14.8 |
| EBIT% | 11.8% | 12.7% | 10.1% | 11.7% |
| Order intake | 140.5 | 99.9 | 337.3 | 264.3 |
| Order backlog | 738.4 | 565.1 | 738.4 | 565.1 |
| Billing ratio | 74.5% | 79.5% | 75.3% | 79.0% |
| Number of employees | 341 | 303 | 341 | 303 |
Net operating revenues came in at NOK 62.2 million (65.6) a decrease of 5.2 per cent compared to the same period 2020. The decrease in revenue was partly due to a lower billing ratio that came in at 74.5 per cent (79.5), 5.0pp. lower than in the comparable quarter last year. Net increase in mannig level and higher on average billing rates for the segment had a positive effect on net operating revenues compared to the same period last year. In general a translation effect of the currency cross PLN/NOK had a negative effect on net operating revenue.
Operating expenses decreased by 4.7 per cent in the period compared to the same period last year. Employee benefit expenses was reduced by 2.4 per cent on a net increase in manning level due to currency translation difference in the comperable periods. In the local currency PLN employee benefit expenses increased in line with ordinary salary adjustment and net recruitment. Other operating expenses decreased by 16.7 per cent, due to reduced costs on general expenditures compared to the same quarter in 2020. In
general a translation effect of the currency cross PLN/NOK had a positive effect on operating expenses.
Order intake in the first quarter increased by 40.7 per cent compared to same quarter last year driven by an increase in the business areas Transportation, Water & Environment and Oil & Gas.
Order backlog was at NOK 738.4 million at the end of the period. The order backlog increased by 30.7 per cent compared to the same period last year and by 7.1 per cent from first quarter 2021. More than 80 per cent of the total order backlog for the segment is held by the business area Transportation.
Net operating revenues was NOK 123.6 million (126.8) in the in first half of 2021, a decrease of 2.5 per cent. The decrease in revenue was partly due to a lower billing ratio that came in at 75.3 per cent (79.0), 3.7pp. lower than in the comparable
At 30 June 2021 the group had 2 927 (2 931) employees, a net reduction in manning level of 4 employees y-o-y. The employee turnover ratio for the group for the period June 2020 to June 2021 was 10.3 per cent (12.7).
net operating revenues compared to the same period last year. In general a translation effect of the currency cross PLN/NOK had a negative effect on net operating revenue. Operating expenses came in 1.2 per cent lower than in the same period in 2020. Employee benefit expenses increased
period last year. Net increase in mannig level and higher on average billing rates for the segment had a positive effect on
in line with ordinary salary adjustment and net recruitment, however the currency translation in the comparable periods more than offsets the increase when measured in the currency NOK. Other operating expenses decreased by 19.2 per cent on lower general expenditures in general compared to same period in 2020. In general a translation effect of the currency cross PLN/NOK had a positve effect on operating expences.
Order intake in the first half 2021 came in at NOK 337.3 million, an increase of 27.6 per cent driven by an increase in the main business area Transportation.
According to Universum's 2021 Employer Attractiveness Ranking survey among engineering students in May 2021, Multiconsult once again ranked number one in the construction industry (and among consultancy companies) in Norway and number three among all Engineer/Natural Science companies in Norway.
On 5 July 2021, Nye Veier AS informed Multiconsult that the construction contract for the E6 Moelven - Roterud was terminated due to negative cost development in the project. The contract was held with the consortium Berinor ANS (consisting of the contractors Bexix and Rizzani), and Multiconsult was subcontractor to Berinor.
On 8 July 2021, Multiconsult announced that they entered into an agreement to purchase 100 per cent of the shares of Erichsen & Horgen AS at an enterprise value (EV) of NOK 410 million on a cash- and debt free basis based on normalised working capital. Erichsen & Horgen AS, including its subsidiary Ingeniørfirmaet Malnes og Endresen AS is a leading Norwegian engineering consultancy with a strong market position within buildings construction, HVAC, WWT, energy, environment and sustainability. The total purchase price was NOK 421.8 million after adjustments for working capital and net cash. The total purchase price was settled in a combination of NOK 337.5 million in cash and NOK 84.4 million in Multiconsult shares. As part of the settlement, Multiconsult issued 460 129 shares on 16 August 2021 at a share price of NOK 183.35. The closing date for the transaction was on 16 August 2021. Multiconsult ASA revolving credit facility (RCF) of NOK 200.0 million including an accordion option of NOK 400.0 million, has been increased to a total of NOK 450.0 million in connection with the transaction. Further details in note 12 in this report.
These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances in the future.
The overall market outlook for Multiconsult's services remains generally good or stable across all business areas. The potential opportunities in the pipeline are also at a good level in most business areas. Significant public sector transport projects are expected to provide stable business opportunities, and demand from the industry sector for "green" and sustainable projects is increasing. This is partially driven by ongoing initiatives led by the industry and political environment. In the building and properties industry transformation and rehabilitation is expected, and with new hospitals planned across Scandinavia, the market outlook is stable. The maintenance lag in water- and wastewater infrastructure is significant, which together with a growing market for climate change adoptions, suggests a good outlook in this area. Other business areas are overall expected to remain fairly stable in the short term.
The competitive landscape is migrating towards more Engineering, Procurement and Construction (EPC), and Best Value Procurement, implicating new contract structures for the consultant business. Contract structures aiming at cooperation in the value chains are becoming more important. This creates business opportunities and a shift towards new technology combined with increased focus on a sustainable and circular solutions.
As the World is slowly edging towards a "post Covid-19" the Covid-19 pandemic is still creating business uncertainty in the short term. Sales in the first half of 2021 and the market in general is not significantly influenced by the pandemic, and the market is expected to stabilise further with the vaccination now coming into effect. The continued support and funding of public sector projects, as well as the timing of such projects, is of key importance to our business, and potential delays or cancellations will impact our business negatively.
Together with the newly acquired Erichsen & Horgen, Multiconsult will continue to focus on maintaining its industry leading competence, and further develop solid customer relations and leading solutions, as well as excellent project execution. The order backlog provides Multiconsult with a good foundation to handle the continued uncertainties facing the economy and our industry.
The risk of disagreements and legal disputes related to possible cost of delays and project errors is always present in the engineering consultancy business. Multiconsult has developed internal procedures and competences to reduce risk exposure for legal disputes. Multiconsult has normal and relevant insurance policies and routines for protection of normal and most potential consequences of such matters. Further details regarding the insurance coverage are provided in note 20 to the consolidated financial statements, and under Risk and Risk Management in the 2020 Annual Report. Multiconsult has experienced an increase in the number of and size of potential legal disputes, which potentially may, in adverse circumstances, have negative financial impact. In connection with a project completed several
years ago, one of Multiconsult's customers has taken legal action to seek compensation for losses amounting to approximately NOK 90 million. Multiconsult considers that the claim is without merit and will defend itself against the lawsuit.
Multiconsult is exposed to a number of risk factors; Covid-19 risk, legal liability, credit risk, currency risk, interest rate risk, liquidity risk, accounting estimates risk and expertise risk. The Risk and Risk Management section in the 2020 Annual Report contains detailed description and mitigating actions. Multiconsult has not identified additional risk exposures beyond the ones described in the 2020 Annual Report, including the Covid-19 risk.
Net operating revenues: Operating revenues less sub consultants, direct external project costs and disbursements.
EBITDA: EBIT before depreciation, amortisation and impairment.
EBITDA margin (%): EBITDA as a percentage of net operating revenues.
EBIT: Earnings before net financial items, results from associates and joint ventures and income tax.
EBIT margin (%): EBIT as a percentage of net operating revenues.
Other opex ratio (APM): Other operating expenses adjusted for IFRS 16 effects as a percentage of net operating revenue.
Billing ratio (%): Total billable hours in a period as a percentage of total hours reported in the period (including administrative staff) and employer-paid absence. Billing ratio per segment includes allocated administrative staff.
Employees: Number of employees comprise all staff on payroll including staff on temporarily leave (paid and unpaid), excluding temporary personnel.
Order intake: Expected operating revenues on new contracts and confirmed changes to existing contracts. Only group external contracts are included.
Order backlog: Expected remaining operating revenues on new and existing contracts. Only group external contracts are included. Call-offs on frame agreements are included in the order backlog when signed.
Net interest-bearing debt: Non-current and current interestbearing liabilities deducted cash and cash equivalents.
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 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 report.
We confirm to the best of our knowledge that the condensed set of financial statements for the period 1 January to 30 June 2021 have been prepared in accordance with IAS 34 - Interim Financial Reporting, and gives a true and fair view of the Multiconsult group's assets, liabilities, financial position and result for the period. We also confirm to the best of our
knowledge that the financial review includes a fair review of important events that have occurred during the financial year and their impact on the financial statements, any major related parties transactions, and a description of the principal risks and uncertainties.
Oslo, 17 August 2021 The Board of Directors and CEO Multiconsult ASA
Bård Martin Mikkelsen Hanne Rønneberg Tove Raanes Sverre Finn Hurum Bo Rikard Appelgren
Chairman Board member Board member Board member Board member
Gunnar Vatnar Torben Halland Wedervang Karine Gjersø Grethe Bergly Board member Board member Board member CEO
Unaudited for the period ended 30 June 2021
| Amounts in NOK thousand, except EPS | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | FY 2020 |
|---|---|---|---|---|---|
| Operating revenues | 1 104 750 | 1 102 057 | 2 195 457 | 2 249 884 | 4 186 161 |
| Expenses for sub consultants and disbursements | 117 903 | 150 402 | 229 590 | 304 586 | 525 225 |
| Net operating revenues | 986 848 | 951 655 | 1 965 867 | 1 945 299 | 3 660 936 |
| Employee benefit expenses | 717 276 | 690 917 | 1 449 972 | 1 406 860 | 2 660 077 |
| Other operating expenses | 107 234 | 108 443 | 206 937 | 218 395 | 402 174 |
| Operating expenses excl. depreciation and amortisation | 824 510 | 799 360 | 1 656 909 | 1 625 255 | 3 062 250 |
| Operating profit before depreciation and amortisation (EBITDA) | 162 337 | 152 295 | 308 958 | 320 044 | 598 686 |
| Depreciation and amortisation | 47 742 | 49 823 | 95 864 | 100 108 | 197 639 |
| Impairment | - | - | - | - | 30 000 |
| Operating profit (EBIT) | 114 595 | 102 472 | 213 093 | 219 936 | 371 047 |
| Share of profit from associated companies and joint ventures | (614) | (1 044) | 105 | (2 026) | (2 269) |
| Financial income and expenses | |||||
| Financial income | 3 973 | 419 | 7 191 | 11 486 | 22 692 |
| Financial expenses | 13 521 | 15 307 | 29 110 | 33 129 | 62 119 |
| Net financial items | (9 547) | (14 888) | (21 919) | (21 643) | (39 427) |
| Profit before tax | 104 434 | 86 540 | 191 279 | 196 267 | 329 350 |
| Income tax expense | 26 307 | 20 689 | 46 574 | 46 295 | 80 141 |
| Profit for the period | 78 127 | 65 852 | 144 706 | 149 971 | 249 209 |
| Attributable to: | |||||
| Owners of Multiconsult ASA | 78 127 | 65 852 | 144 706 | 149 971 | 249 209 |
| Earnings per share | |||||
| Basic and diluted (NOK) | 2.90 | 2.44 | 5.37 | 5.56 | 9.25 |
| Amounts in NOK thousand | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | FY 2020 |
|---|---|---|---|---|---|
| Profit for the period | 78 127 | 65 852 | 144 706 | 149 971 | 249 209 |
| Other comprehensive income | |||||
| Remeasurement of defined benefit obligations | - | - | - | - | 228 |
| Income taxes | - | - | - | - | (50) |
| Total items that will not be reclassified to profit or loss | - | - | - | - | 178 |
| Currency translation differences | 6 750 | (4 810) | (7 442) | 16 547 | 12 640 |
| Total items that may be reclassified subsequently to profit or loss | 6 750 | (4 810) | (7 442) | 16 547 | 12 640 |
| Total other comprehensive income for the period | 6 750 | (4 810) | (7 442) | 16 547 | 12 817 |
| Total comprehensive income for the period | 84 878 | 61 042 | 137 264 | 166 518 | 262 026 |
| Attributable to: | |||||
| Owners of Multiconsult ASA | 84 878 | 61 042 | 137 264 | 166 518 | 262 026 |
| Amounts in NOK thousand | 30 June 2021 | 31 March 2021 | 31 December 2020 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Deferred tax assets | 28 708 | 34 507 | 34 023 |
| Intangible assets | 18 491 | 19 581 | 20 913 |
| Goodwill | 451 771 | 449 703 | 454 692 |
| Property, plant and equipment | 111 146 | 104 148 | 103 640 |
| Right-of-use assets | 766 412 | 798 510 | 806 081 |
| Investments in associated companies and joint ventures | 10 258 | 10 803 | 10 227 |
| Assets for reimbursement of provisions | 9 200 | 19 400 | 23 172 |
| Non-current receivables and shares | 20 056 | 19 842 | 20 230 |
| Total non-current assets | 1 416 041 | 1 456 494 | 1 472 977 |
| Current assets | |||
| Trade receivables | 697 545 | 570 615 | 626 726 |
| Work in progress | 273 141 | 320 922 | 255 894 |
| Other receivables and prepaid costs | 120 987 | 137 376 | 85 154 |
| Cash and cash equivalents | 66 376 | 297 855 | 277 435 |
| Total current assets | 1 158 049 | 1 326 767 | 1 245 209 |
| Total assets | 2 574 091 | 2 783 261 | 2 718 185 |
| EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Total paid in equity | 89 182 | 85 988 | 85 988 |
| Other equity | 609 713 | 740 013 | 687 627 |
| Total shareholders' equity | 698 895 | 826 001 | 773 615 |
| Non-current liabilities | |||
| Pension obligations | 6 474 | 6 474 | 6 474 |
| Deferred tax | 13 656 | 12 068 | 11 512 |
| Provisions | 14 860 | 26 550 | 31 222 |
| Non-current interest-bearing liabilities | - | - | - |
| Non-current lease liabilities | 696 244 | 725 126 | 733 035 |
| Total non-current liabilities | 731 233 | 770 217 | 782 243 |
| Current liabilities | |||
| Trade payables | 83 952 | 109 079 | 106 436 |
| Prepaid revenues | 133 789 | 146 328 | 155 656 |
| Current tax liabilities | 47 695 | 93 971 | 79 053 |
| Public duties payable | 334 382 | 319 432 | 354 779 |
| Current interest-bearing liabilities | - | - | - |
| Current lease liabilities | 131 355 | 133 277 | 131 499 |
| Other current liabilities | 412 789 | 384 958 | 334 905 |
| Total current liabilities | 1 143 962 | 1 187 043 | 1 162 328 |
| Total liabilities | 1 875 195 | 1 957 260 | 1 944 571 |
| Total equity and liabilities | 2 574 091 | 2 783 261 | 2 718 185 |
| Share Own Share paid-in Retained purchase Total Amounts in NOK thousand capital shares premium capital earnings programme Pension Currency equity 31 December 2019 13 486 (1) 77 758 91 241 710 035 (24 565) (203 183) 7 882 581 413 Dividend - - - - - - - - - Treasury shares - - - - - 34 - - 34 Employee share purchase programme - - - - - - - - - Comprehensive income - - - - 149 971 - - 16 547 166 519 30 June 2020 13 486 (1) 77 758 91 241 860 007 (24 531) (203 183) 24 429 747 966 31 December 2019 13 486 (1) 77 758 91 241 710 035 (24 565) (203 183) 7 882 581 413 Dividend - - - - (53 626) - - - (53 626) Treasury shares - (5 255) - (5 255) - (3 232) - - (8 487) Employee share purchase programme - - - - - (7 712) - - (7 712) Comprehensive income - - - - 249 209 - 178 12 640 262 026 31 December 2020 85 988 773 615 13 486 (5 256) 77 758 905 619 (35 509) (203 005) 20 522 31 December 2020 13 486 (5 256) 77 758 85 988 905 619 (35 509) (203 005) 20 522 773 615 Dividend - - - - (215 437) - - - (215 437) Treasury shares - 3 193 - 3 193 - (65) - - 3 129 Employee share purchase - 325 programme - - - - 325 - - |
Total | Employee share |
||||
|---|---|---|---|---|---|---|
| Comprehensive income - - - - 144 706 - - (7 442) 137 264 |
||||||
| 30 June 2021 13 486 (2 062) 77 758 89 182 834 887 (35 249) (203 005) 13 080 698 895 |
| Amounts in NOK thousand | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | FY 2020 |
|---|---|---|---|---|---|
| Cash flow from operating activities | |||||
| Profit before tax | 104 434 | 86 540 | 191 279 | 196 267 | 329 350 |
| Interest lease liability | 8 026 | 8 809 | 16 364 | 17 831 | 34 667 |
| Interest expense interest-bearing liability | - | 1 566 | - | 4 082 | 5 851 |
| Income taxes paid | (64 825) | (2 403) | (72 311) | (5 059) | (12 769) |
| Depreciation, amortisation and impairment | 11 613 | 13 201 | 23 767 | 26 554 | 51 945 |
| Depreciation right-of-use asset | 36 129 | 36 622 | 72 097 | 73 553 | 145 694 |
| Impairment right-of-use asset | - | - | - | - | 30 000 |
| Results from associated companies and joint ventures | 614 | 1 044 | (105) | 2 026 | 2 269 |
| Other non-cash profit and loss items | (1 016) | - | (939) | - | - |
| Sub total operating activities | 94 974 | 145 381 | 230 153 | 315 256 | 587 007 |
| Trade Payables | (25 127) | (18 328) | (22 484) | (20 385) | (54 227) |
| Trade receivables | (126 930) | 18 942 | (70 819) | (15 726) | 11 750 |
| Work in progress | 47 781 | 68 204 | (17 247) | (2 041) | 53 140 |
| Other | 46 586 | 79 433 | (3 540) | 64 530 | 70 026 |
| Total changes in working capital | (57 691) | 148 251 | (114 091) | 26 378 | 80 690 |
| Net cash flow from operating activities | 37 284 | 293 632 | 116 062 | 341 634 | 667 697 |
| Cash flows used in investment activities | |||||
| Net purchase and sale of fixed assets and financial non-current assets | (16 190) | 861 | (22 849) | (9 014) | (25 187) |
| Proceeds/payments related to joint ventures and jointly controlled entities | - | - | (6 000) | - | - |
| Change in non-current financial assets, restricted funds | (646) | (4 212) | 311 | (4 885) | (2 649) |
| Net cash flow used in investment activities | (16 836) | (3 350) | (28 539) | (13 899) | (27 836) |
| Cash flow from financing activities | |||||
| Proceeds on interest-bearing liabilities | - | - | - | 172 000 | 172 000 |
| Instalments on interest-bearing liabilities | - | (72 000) | - (250 400) (350 400) | ||
| Paid interest on interest-bearing liability | - | (1 566) | - | (4 082) | (5 851) |
| Instalments on lease liabilities | (34 924) | (33 223) | (69 367) | (66 676) (134 070) | |
| Paid interest on lease liability | (8 026) | (8 809) | (16 364) | (17 831) | (34 667) |
| Paid dividends | (215 437) | - | (215 437) | - | (53 626) |
| Sale treasury shares | 4 470 | - | 4 470 | 6 400 | 21 919 |
| Purchase treasury shares | - | - | - | (6 366) | (52 805) |
| Net cash flow from financing activities | (253 917) (115 599) (296 699) (166 955) (437 499) | ||||
| Foreign currency effects on cash and cash equivalents | 1 991 | (189) | (1 883) | 3 067 | 1 516 |
| Net increase/decrease in cash and cash equivalents | (231 479) | 174 494 | (211 058) | 163 847 | 203 877 |
| Cash and cash equivalents at the beginning of the period | 297 855 | 62 910 | 277 435 | 73 558 | 73 558 |
| Cash and cash equivalents at the end of the period | 66 376 | 237 405 | 66 376 | 237 405 | 277 435 |
Multiconsult ASA (the company) is a Norwegian public limited liability company listed on Oslo Stock Exchange. The company and its subsidiaries (together the Multiconsult group/the group) are among the leading suppliers of consultancy and
The financial statements are presented in NOK, rounded to the nearest thousand, unless otherwise stated. As a result of rounding adjustments, the figures in one or more rows or columns included in the financial statements and notes may not add up to the total of that row or column.
These interim condensed consolidated financial statements for the second quarter and first half of 2021 have been prepared in accordance with IAS 34 as approved by the EU. They have not been audited. They do not include all of the information required
The group prepares its consolidated annual financial statements in accordance with IFRS as adopted by the EU (International Financial Reporting Standards - IFRS). References to IFRS in
the second quarter and first half of 2021 were approved by the board of directors and the CEO on 17 August 2021.
These interim condensed consolidated financial statements for
these financial statements refer to IFRS as approved by the EU. The accounting policies adopted are consistent with those of the previous financial year, with the exemptions presented below.
The preparation of interim condensed consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these interim condensed consolidated financial statements, significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the annual consolidated financial statements for 2020 note 2.
Cash-generating units are reviewed for impairment when indicators exist. The estimated recoverable amounts are affected by assumptions in connection with the estimation of future cash flows, as well as discount rate for the estimation of the present
value of the cash flows. An assessment of impairment indicators has been made on 30 June 2021 and the conclusion was that there were no impairment indicators and thereby a full test is not performed.
The group performed full impairment tests on 31 December 2020 which did not result in any impairment for goodwill, property, plant and equipment or intangible assets related to any of the cash generating units.
for full annual financial statements of the group and should be read in conjunction with the consolidated financial statements for 2020. The accounting policies applied are consistent with those applied and described in the consolidated annual financial statements for 2020, which are available upon request from the company's registered office at Nedre Skøyen vei 2, 0276 Oslo
design services in Norway and the Nordic region. The group has subsidiaries outside the Nordic region in Poland, United Kingdom
and Singapore.
and at www.multiconsult.no.
Refer to section Segments for more information on the segments.
The group has three geographical reporting segments as well as a segment for Energy and LINK arkitektur.
| Q2 2021 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues | 337 586 | 414 025 | 68 191 | 175 643 | 89 931 | 19 374 | - | 1 104 750 |
| Internal revenues | 15 990 | 13 859 | 1 585 | 8 671 | 1 334 | 990 | (42 429) | - |
| Total operating revenues | 353 576 | 427 884 | 69 776 | 184 314 | 91 265 | 20 364 | (42 429) 1 104 750 | |
| Net operating revenues | 299 198 | 398 744 | 62 533 | 156 505 | 62 198 | 8 979 | (1 311) | 986 848 |
| Operating expenses | 255 333 | 315 692 | 59 704 | 140 148 | 50 916 | 4 028 | (1 311) | 824 510 |
| EBITDA | 43 866 | 83 052 | 2 829 | 16 357 | 11 282 | 4 951 | (0) | 162 337 |
| Depreciation, amortisation, impairment | 4 391 | 22 118 | 306 | 5 437 | 3 919 | 11 640 | (69) | 47 742 |
| EBIT | 39 475 | 60 934 | 2 523 | 10 921 | 7 363 | (6 688) | 69 | 114 595 |
| Associates and joint ventures | - | - | (614) | - | - | - | - | (614) |
| Number of employees | 755 | 1 043 | 176 | 483 | 341 | 129 | - | 2 927 |
| Q2 2020 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues | 348 136 | 379 142 | 76 902 | 186 007 | 100 680 | 9 936 | 1 254 | 1 102 057 |
| Internal revenues | 5 343 | 8 490 | 2 361 | 13 805 | 995 | (545) | (30 448) | - |
| Total operating revenues | 353 479 | 387 632 | 79 263 | 199 812 | 101 675 | 9 391 | (29 195) 1 102 057 | |
| Net operating revenues | 301 893 | 366 975 | 65 288 | 152 421 | 65 626 | 2 357 | (2 905) | 951 655 |
| Operating expenses | 256 092 | 306 649 | 65 936 | 135 289 | 53 403 | (15 342) | (2 667) | 799 360 |
| EBITDA | 45 801 | 60 326 | (648) | 17 132 | 12 223 | 17 699 | (238) | 152 295 |
| Depreciation, amortisation, impairment | 4 419 | 22 048 | 471 | 6 317 | 3 881 | 12 917 | (229) | 49 823 |
| EBIT | 41 382 | 38 278 | (1 119) | 10 815 | 8 342 | 4 782 | (9) | 102 471 |
| Associates and joint ventures | - | - | (1 043) | - | - | - | - | (1 043) |
| Number of employees | 775 | 1 046 | 193 | 486 | 303 | 128 | - | 2 931 |
| H1 2021 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues | 673 558 | 817 600 | 136 511 | 358 531 183 732 | 25 524 | - | 2 195 457 | |
| Internal revenues | 32 145 | 24 369 | 3 862 | 13 574 | 2 082 | 3 874 | (79 905) | - |
| Total operating revenues | 705 703 | 841 969 | 140 372 | 372 105 185 814 | 29 398 | (79 905) 2 195 457 | ||
| Net operating revenues | 610 799 | 789 465 | 124 033 | 309 128 123 654 | 12 797 | (4 010) 1 965 867 | ||
| Operating expenses | 522 310 | 638 279 | 120 372 | 281 916 103 277 | (5 235) | (4 010) 1 656 909 | ||
| EBITDA | 88 490 | 151 186 | 3 662 | 27 212 | 20 376 | 18 032 | 0 | 308 958 |
| Depreciation, amortisation, impairment | 8 559 | 44 586 | 620 | 10 815 | 7 938 | 23 483 | (138) | 95 864 |
| EBIT | 79 930 | 106 601 | 3 042 | 16 396 | 12 438 | (5 451) | 138 | 213 093 |
| Associates and joint ventures | - | - | 105 | - | - | - | - | 105 |
| Number of employees | 755 | 1 043 | 176 | 483 | 341 | 129 | - | 2 927 |
| H1 2020 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues | 722 438 | 780 413 | 161 172 | 373 965 | 195 213 | 15 646 | 1 037 | 2 249 884 |
| Internal revenues | 9 912 | 16 724 | 5 704 | 22 644 | 1 640 | 194 | (56 818) | - |
| Total operating revenues | 732 350 | 797 137 | 166 876 | 396 609 196 853 | 15 839 | (55 781) 2 249 884 | ||
| Net operating revenues | 631 469 | 758 020 | 134 820 | 303 379 126 839 | (3 418) | (5 810) 1 945 299 | ||
| Operating expenses | 523 494 | 633 183 | 131 557 | 273 063 104 506 | (34 468) | (6 080) 1 625 255 | ||
| EBITDA | 107 974 | 124 836 | 3 262 | 30 316 | 22 333 | 31 051 | 271 | 320 044 |
| Depreciation, amortisation, impairment | 8 896 | 43 668 | 916 | 12 752 | 7 525 | 26 090 | 260 | 100 108 |
| EBIT | 99 078 | 81 168 | 2 347 | 17 564 | 14 807 | 4 961 | 10 | 219 936 |
| Associates and joint ventures | - | - | (2 026) | - | - | - | - | (2 026) |
| Number of employees | 775 | 1 046 | 193 | 486 | 303 | 128 | - | 2 931 |
| FY 2020 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues | 1 293 843 | 1 506 295 | 292 059 | 695 317 379 392 | 19 256 | - | 4 186 161 | |
| Internal revenues | 49 534 | 33 803 | 9 891 | 32 408 | 5 975 | 6 513 (138 125) | - | |
| Total operating revenues | 1 343 377 | 1 540 098 | 301 950 | 727 725 385 367 | 25 770 (138 125) 4 186 161 | |||
| Net operating revenues | 1 175 700 | 1 449 805 | 248 770 | 561 595 | 242 541 | (10 276) | (7 200) 3 660 936 | |
| Operating expenses | 972 416 | 1 178 641 | 240 333 | 509 870 202 361 | (33 614) | (7 756) 3 062 250 | ||
| EBITDA | 203 284 | 271 164 | 8 438 | 51 725 | 40 181 | 23 338 | 556 | 598 686 |
| Depreciation, amortisation, impairment | 17 166 | 87 197 | 1 645 | 25 988 | 15 407 | 81 615 | (1 379) | 227 639 |
| EBIT | 186 118 | 183 968 | 6 793 | 25 737 | 24 774 | (58 277) | 1 935 | 371 047 |
| Associates and joint ventures | - | - | (2 269) | - | - | - | - | (2 269) |
| Number of employees | 769 | 1 033 | 186 | 487 | 321 | 129 | - | 2 925 |
The group's net operating revenues are affected by the number of working days within each reporting period while employee expenses are recognised for full calendar days. The number of working days in a month is affected by public holidays and vacations. The timing of public holidays (e.g. Easter) during
quarters and whether they fall on weekends or weekdays impacts revenues, earnings, cash flows and working capital balances. Generally, the company's employees are granted leave during Easter and Christmas. The summer holidays primarily impact the month of July and the third quarter.
There were no significant events and transactions in the period.
See note 23 to the consolidated financial statements for 2020 for a description of related parties and related parties' transactions in 2020.
Multiconsult held 15 986 treasury shares on 30 June 2021. Description of the share purchase programme for the employees and the performance-based bonus scheme for the group
management is described in note 9 in the consolidated financial statements for 2020.
For the periods presented there are no dilutive effects on profits or number of shares. Basic and diluted earnings per share are therefore the same.
| Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | FY 2020 | |
|---|---|---|---|---|---|
| Profit for the period (in NOK thousand) | 78 127 | 65 852 | 144 706 | 149 971 | 249 209 |
| Average no of shares (excl own shares) | 26 941 078 | 26 970 378 | 26 935 397 | 26 950 866 | 26 930 713 |
| Earnings per share (NOK) | 2.90 | 2.44 | 5.37 | 5.56 | 9.25 |
The group's financial instruments are interest bearing debt, accounts receivables and other receivables, cash and cash equivalents and accounts payables. It is assumed that the
book value is a good approximation of fair value for the group's financial instruments.
| Amounts in NOK thousand | 30 June 2021 | 31 March 2021 | 31 December 2020 |
|---|---|---|---|
| Multiconsult ASA | - | - | - |
| Total | - | - | - |
At the end of the period Multiconsult ASA has an overdraft loan facility of NOK 320.0 million, which is part of a cash pool. The cash pool is a multi-currency and multi-account system including the legal entities Multiconsult Norge AS, LINK arkitektur AS, LINK arkitektur AB, LINK arkitektur A/S, Iterio AB, Multiconsult UK Limited and Johs Holt AS, where Multiconsult ASA is the owner of the cash pool's top account and the debtor of the facility. In addition, Multiconsult ASA holds a 3-year revolving credit
On 8 July, Multiconsult announced that they entered into an agreement to purchase 100% of the shares of Erichsen & Horgen AS at an enterprise value (EV) of NOK 410 million on a cash- and debt free basis based on normalised working capital. The total purchase price for the acquisition of Erichsen & Horgen AS is NOK 421.8 million after adjustments for working capital and net cash was settled in a combination of NOK 337.5 million in cash (80 per cent) and NOK 84.4 million in Multiconsult shares (20 per cent) on 16 August 2021. The transaction was based on a lockedbox acquisition model where the locked-box date (reference date) was set to 31 Dec 2020. Consequently, Multiconsult will in addition to the purchase price pay total consideration of NOK 9.1
facility of NOK 200 million, plus accordion until March 2023. Multiconsult ASA is in compliance with its financial covenants on 30 June 2021.
Fair value of derivatives (interest rate swap) was recorded with an unrealised loss of NOK 0.9 million on 30 June 2021 (loss of NOK 1.3 million on 31 March 2021).
million as locked-box compensation for the period 1 Jan 2021 to 16 Aug 2021 (the closing date).
Erichsen & Horgen AS is a leading Norwegian engineering consultancy with a strong market position within buildings construction, HVAC, WWT, energy, environment and sustainability. Erichsen & Horgen AS, including its subsidiary Ingeniørfirmaet Malnes og Endresen AS, has about 235 employees with headquarter in Oslo, the company also has offices in Trondheim, Skien, Drammen and Lillehammer. For 2020, the company recorded operating revenues of NOK 331.3 million, EBIT of NOK 31.3 million and net profit (after tax) of NOK 24.3 million.
The acquisition is a strategic milestone in Multiconsult's mission to provide solutions to clients for the most complex projects
and constructions in line with tomorrow's demands regarding environmental and innovative sustainable solutions. Erichsen & Horgen AS has leading expertise and a culture that fits well with Multiconsult. The two companies have a long history of successful collaboration projects based on trust and mutual respect. Multiconsult will together with Erichsen & Horgen AS be able to offer solid, interdisciplinary expertise and experience and bring our leading solutions to the next level.
In connection with the closing of the transaction, Multiconsult ASA revolving credit facility (RCF) with its main bank of NOK 200.0 million including an accordion option of NOK 400.0 million until March 2023, has been increased to a total of NOK 450.0 million with an accordion option of NOK 150.0 million. As part of the settlement in shares, Multiconsult will, in accordance with the amendments approved at Multiconsult ASA's general meeting on 19 April 2021, issue to the shareholders of the acquired company 460 129 shares on 16 August 2021, at a share price of 183.35, representing approximately 1.68 per cent of the shares in Multiconsult ASA and an increase of share capital of NOK 230 064.50. Effective from the time the share capital increase and new shares will be registered in the Norwegian Registry of Business Enterprises, the Company's Articles of Association will be amended accordingly. The amended Articles of Association will be available on Multiconsult website at https:// www.multiconsult-ir.com/articles-of-association
The share capital increase pertaining to the issuance of the consideration shares was filed with the Norwegian Register of Business Enterprises immediately and registration is expected to take place shortly. Following registration, the total share capital of Multiconsult ASA will be NOK 13 715 261.50 divided into 27 430 523 shares, each with a nominal value of NOK 0.5.
Multiconsult holds 15 986 treasury shares on 16 August 2021, following completion of the transaction the shares held by Multiconsult represent approximately 0.1 per cent ownership and total outstanding share capital.
Net assets based on a preliminary purchase price allocation:
Amounts in NOK million
| Assets Liabilities |
182.0 160.4 |
|---|---|
| Net identifiable assets and liabilities | 21.6 |
| Excess values: Goodwill |
400.2 |
| Net assets | 421.8 |
| Settlement: | |
| Settled with Multiconsult shares | 84.4 |
| Cash and cash equivalents | 41.8 |
| Net cash paid | (295.7) |
The preliminary purchase allocation is based on audited financial statements on 31 December 2020 for Erichsen & Horgen AS and its subsidiary Ingeniørfirmaet Malnes og Endresen AS, adjusted for calculated IFRS 16 right of use assets and lease liabilities.
The acquisition generated an excess value of NOK 400.2 million. Based on preliminary analysis, the excess value will be allocated to goodwill. The goodwill is related to the competence of the staff and synergy effects.
Multiconsult uses alternative performance measures for periodic and annual financial reporting in order to provide a better understanding of the group's underlying financial performance.
Reported figures adjusted for restructuring cost and other items affecting comparability. In the second quarter there was a calendar effect of three more working days which had a positive impact on Net operating revenue and EBIT of approximately NOK 45.2 million compared to 2020 and in the first half there was one
less working day which had a negative impact on Net operating revenue and EBIT of approximately NOK 11.2 million compared to 2020.
For full year 2020 EBIT ex. restructuring cost is calculated by excluding one-off nextLEVEL restructuring cost of NOK 30.0 million in Q3 and FY 2020. There were no material restructuring cost or other items affecting comparability in Q2 or first half 2021.
| Amounts in NOK million (except percentage) | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | FY 2020 |
|---|---|---|---|---|---|
| Net operating revenues | 986.8 | 951.7 | 1 965.9 | 1 945.3 | 3 660.9 |
| Calendar effect | (45.2) | - | 11.2 | - | - |
| Adjusted net operating revenues | 941.7 | 951.7 | 1 977.1 | 1 945.3 | 3 660.9 |
| Operating expenses excluding depreciation and amortisation | 824.5 | 799.4 | 1 656.9 | 1 625.3 | 3 062.3 |
| Adjusting items Adjusted operating expenses excluding depreciation and |
- | - | - | - | - |
| amortisation | 824.5 | 799.4 | 1 656.9 | 1 625.3 | 3 062.3 |
| Adjusted EBITDA including calendar effect | 117.2 | 152.3 | 320.2 | 320.0 | 598.7 |
| Depreciation and amortisation | 47.7 | 49.8 | 95.9 | 100.1 | 197.6 |
| Impairment | - | - | - | - | 30.0 |
| Adjusting items | - | - | - | - | (30.0) |
| Adjusted depreciation, amortisation and impairment | 47.7 | 49.8 | 95.9 | 100.1 | 197.6 |
| Adjusted EBIT | 114.6 | 102.5 | 213.1 | 219.9 | 401.0 |
| Adjusted EBIT including calendar effect | 69.4 | 102.5 | 224.3 | 219.9 | 401.0 |
| Adjusted EBITDA margin including calendar effect | 12.4% | 16.0% | 16.2% | 16.5% | 16.4% |
| Adjusted EBIT margin | 11.6% | 10.8% | 10.8% | 11.3% | 11.0% |
| Adjusted EBIT margin including calendar effect | 7.4% | 10.8% | 11.3% | 11.3% | 11.0% |
| Other OPEX ratio Amounts in NOK million (except percentage) |
Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | FY 2020 |
| Other operating expenses | 107.2 | 108.4 | 206.9 | 218.4 | 402.2 |
| Other operating expenses IFRS 16 effect | 42.9 | 42.0 | 85.7 | 84.5 | 168.8 |
| Other operating expenses excluding IFRS 16 | 150.2 | 150.5 | 292.7 | 302.9 | 570.9 |
| Net operating revenue | 986.8 | 951.7 | 1 965.9 | 1 945.3 | 3 660.9 |
| Other opex ratio | 15.2% | 15.8% | 14.9% | 15.6% | 15.6% |
| Equity ratio Amounts in NOK million (except percentage) |
30 June 2021 | 31 March 2021 | 31 December 2020 | ||
| Total shareholders' equity | 698.9 | 826.0 | 773.6 | ||
| Total assets Equity ratio |
2 574.1 | 2 783.3 29.7% |
2 718.2 28.5% |
||
| 27.2% | |||||
| Total shareholders' equity (excl. IFRS 16) | 760.1 | 885.9 | 832.1 | ||
| Total assets (excl. IFRS 16) Equity ratio |
1 807.7 42.0% |
1 984.8 44.6% |
1 912.1 43.5% |
||
| Net interest bearing liabilities | |||||
| Amounts in NOK million | 30 June 2021 | 31 March 2021 | 31 December 2020 | ||
| Cash and cash equivalents, excluding restricted cash | 66.4 | 297.9 | 277.4 | ||
| Cash and cash equivalents, restricted cash | - | - | - | ||
| Non-current financial assets, restricted funds Interest-bearing liabilities |
15.5 827.6 |
14.9 858.4 |
15.8 864.5 |
Net interest-bearing liabilities including IFRS 16 lease liabilities 745.7 545.7 571.3 Non-current and current IFRS 16 lease liabilities 827.6 858.4 864.5 Net interest-bearing liabilities excluding IFRS 16 lease liabilities (81.9) (312.7) (293.3)
Visiting address: Nedre Skøyen vei 2 0276 Oslo
Postal address: P O Box 265 Skøyen NO-0213 Oslo
T: (+47) 21 58 50 00 E: [email protected]
Investor relations: E: [email protected]
Org no 910 253 158
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