Bouvet Asa · OSL:BOUV
Bouvet Asa — Q3 2014 Earnings Presentation
23 slides from Bouvet Asa's earnings presentation, Nov 12, 2014
Slide 1: Interim presentation Third quarter 2014
Interim presentation Third quarter 2014 Sverre Hurum. CEO Erik Stubø. CFO 12 November 2014
Slide 2: Highlights in the third quarter
Highlights in the third quarter • Revenues and EBIT Revenues and number of employees MNOK and number – Reduced revenues from Statoil 350 300 – Operating revenues decreased 250 2.7 percent to NOK 242.3 million 200 (y-o-y) 150 100 – Loss of revenues replaced by 50 other sectors 0 Q3'09 Q3'10 Q3'11 Q3'
Slide 3: Changes in Oil and Gas
Changes in Oil and Gas • Reduced revenues from Statoil • Sales to Statoil decreased 41.2 percent from the same period of last year. • Adjusted for Statoil the revenues from Oil & Gas increased by 7 percent 3 Interim presentation 2nd quarter 2014
Slide 4: Change in revenues (sector split)
Revenues Change in revenues (sector split) NOK million 840 6 819 820 814 -75 8 12 800 15 4 780 17 8 760 2 8 740 720 0 700 Retail Other YTD 2013 Services YTD 2014 Power supply Statoil Communication Public admin Industry Oil and gas excl. Transportation and defense Statoil 4 Interim presentation 3rd q
Slide 5: Operational Review
Operational Review
Slide 6: Client development
Client development • Existing clients* Revenue split Revenue split (adj. Statoil) MNOK MNOK – Accounted for 88.8 percent New customers (LTM)** New customers (LTM)** of revenues in Q3’14 300 Existing customers* 300 Existing customers* • New customers** 250 250 – Customers won over the past year gener
Slide 7: Customer and project mix
Customer and project mix • Project mix Variably priced contracts share of revenues Percentage – Variable contracts account for 94.7 100% percent of total revenues 90% 80% • Client portfolio 70% – The 10 largest customers represent 60% 42.0 percent of total revenues – 50% down from 54.5 percent in Q3
Slide 8: Range of Services
Range of Services Advisory Communication Technology 8 Interim presentation 3rd quarter 2014
Slide 9: Growth within advisory
Growth within advisory Digital strategy Management / Customer Systems Experience Journey Information Management and Business Security Intelligence Enterprise Collaboration architecture 9 Interim presentation 3rd quarter 2014
Slide 10: Security: An area of growth
Security: An area of growth Ordered data breach with itself From the newspager Fædrelandsvennen, August 28,. 2014 10
Slide 11: Bouvet acquires Capgemini-office in Trondheim
Bouvet acquires Capgemini-office in Trondheim • Expanding range of services and capacity • Complimentary strategy: – Capgemini aims for larger clients with offshoring component – The regional strategy of Bouvet emphasize client proximity Catching the wave: Former Capgemini employees together with ne
Slide 12: Agreement with 'The National Procurement Services' in Sweden
Agreement with ‘The National Procurement Services’ in Sweden • In Sweden, central framework agreements are used for the purchase of consulting services throughout the public sector Northern • Bouvet has won framework region agreements in one of five Swedish regions and has been nominated in two othe
Slide 13: Regional organisation
Regional organisation Additional 35 from Capgemini transaction 60 (+3) 60 (-2) 361 (+24) Trondheim Sesam 14 (+14) Bergen Haugesund Sandvika Oslo Ørebro Stockholm 348 (-2) Sandefjord Stavanger Skien Kristiansand Arendal 46 Group (+9) management and staff: 19 (-1) 54 Malmø (+1) Comparative numbers in
Slide 14: Financial Review
Financial Review
Slide 15: Key figures
Key figures Three months ending Twelve months ending MNOK 30.09.2014 30.09.2013 Change % 30.09.2014 30.09.2013 Change % Operating revenue 242.3 249.1 -2.7 % 1 117.7 1 095.0 2.1 % Operating profit (EBIT) 9.2 17.1 -46.3 % 87.1 89.1 -2.2 % EBIT margin 3.8 % 6.9 % 7.8% 8.1 % Ordinary profit before tax 9
Slide 16: Statoil impacts revenues
Statoil impacts revenues • Revenues decreased by 2.7 Revenue split (quarterly figures) MNOK percent y-o-y 350 Own consultants – Revenues from own consultants 300 Sub-contracted consultants increased by 0.4 percent to NOK 250 Other 200 210.5 million 150 – Revenues from sub-contracted 100 50 consultan
Slide 17: Earnings under pressure
Earnings under pressure • Operating profit decreased y-o-y in EBIT and EBIT margin MNOK and Percent Q3’14 40 EBIT EBIT margin 15% – EBIT margin of 3.8 percent 30 compared to 6.9 percent in Q3’13 10% 20 • Operating expenses increased by 10 5% 0.5 percent compared to Q3’13 0 0% Q3'09 Q3'10 Q3'11 Q3'12
Slide 18: Cash flow reduced
Cash flow reduced • Cash flow from operations Cash flow from operations (per quarter) MNOK – Negative NOK 14.0 million in 120 Q3’14, down from NOK positive 100 80 20.5 million in Q3’13 60 40 • Rolling 12 months 20 0 -20 – Operational cash flow over the last -40 12 months was NOK 83.5 million Q3'09 Q
Slide 19: Outlook
Outlook
Slide 20: Outlook and summary
Outlook and summary • Sales to Statoil fell by 41.2 per cent • Strengthened position within prioritized areas • Continued trend on digitalization • Increased competition will challenge profitability • Strong adaptability opens for further growth and improved profitability in the long term 20 Interim
Slide 21: Appendix
Appendix
Slide 22: Employees
Employees • 962 employees at the end of the Number of employees end of quarter third quarter 1200 – 17 new employees in Q3’14 1000 – 46 new employees in the past 12 800 months 600 400 – Average number of employees in 200 the quarter up 4.5 percent from 0 Q3'09 Q3'10 Q3'11 Q3'12 Q3'13 Q3'14 Q3’13 Ann
Slide 23: Shareholders as of 10.11.2014
Shareholders as of 10.11.2014 Investor Number of shares % of total VARNER KAPITAL AS 1 070 000 10.44 % STENSHAGEN INVEST AS 824 992 8.05 % MP PENSJON PK 669 904 6.54 % HURUM SVERRE FINN 505 751 4.93 % KLP AKSJE NORGE VPF 422 032 4.12 % VEVLEN GÅRD AS 300 000 2.93 % VERDIPAPIRFONDET DNB NORDIC TECHNO