Bouvet ASA

Welcome to the presentation of the results of the second quarter at BOV. My name is Per-Gunnar Tronsli, daily leader. In the quarter, we announced that Erik Stube, after many years in the position as financial director, stepped aside, and the new position is Trude Hole. So today I will tell you a little about what we have used the quarter for, some highlights, and then Trude will tell you a little more about the figures, and then we will finally tell you a little about the outlook for the future. The second quarter, 2021, was a good quarter for BOV. We increased the operating revenues by almost 13.5% to 676 million, compared to the same period last year. This is something they are very pleased with. Compared to the same period last year, the operating results fell by 1.6%, And compared to a rather special quarter last year, Trude is coming back and will tell us more about the reasons for that. And very happily, we are approaching the entire 1,750 residents. Now, and in the quarter, we increased by 64. But even more important, in the last 12 months, we have had 154 more residents. You who have been with us in previous quarterly presentations have seen how the pace has increased to now 154. We are very proud of this. As we all know, it is a pretty tough recruitment market. And we are very proud that we have colleagues and we have a culture that increasingly attracts even more good residents. You know our vision. We will move forward and build the future society. This goes to the core of how we see our social mission. It is about working with some of the most important actors and businesses in the society. This quarter we have worked with solutions for an even better energy collaboration in Norway, the Nordic countries and Europe. We have supported large customers in the energy sector, which is in the middle of the green shift. We have worked with future transport solutions. We have worked with the public sector to make even better services accessible for all of us in our society. We have worked with health for solutions that affect people in all phases of life. And we have contributed to the defence in the further development of cyber defence and digital solutions. Our long-term goals are fixed. The best workplace is important. The vision I described can never be realized without the best people on the team. Every day we work as hard as we can to create a working culture and working environment in Bovee that makes people happy, that people develop. and that people come to Bove. When we talk about the people in Bove, I would like to say an extra thank you to all the residents for all the efforts that all residents have made in this quarter, for the results that have been created and the values that have been created. Thank you very much. Then we have our customers. We have built this business on long-term customer relations. And we have grown and we are developing together with our customers. And I will come back to that, but later in the presentation you will see how our most important customers have become even more important to us and have invested even more in BOV. So it is a successful business. And a successful business is not only about economic results, that is important, but it is also about to deliver on expectations to all our employees and all those who have expectations for us in the world around us. In these times, it is also, among other things, about how we contribute to a sustainable development in our society. We will tell you more about that. Again, you who have followed us, you know how we have had a fairly even distribution between private and public sector. We have seen how during the pandemic, the shift has gone from becoming more and more public, This quarter marks a small adjustment to this development, in such a way that the private sector grows more. But at the same time, we stand with a very even distribution between private and public sector. Something we are very pleased with, and which gives a good and solid foundation to build on. In our sectors, we see some changes. I will go back to the largest sectors, which are energy supply, oil and gas, and the public sector. Here we see the largest development, and I will come back to this later, which is within energy supply. And then we look at oil and gas, where we also have a significant development. But what is worth noting there is the great activity we have within oil and gas in renewable energy. Then we have public. Here I will perhaps point to a small sector for BOV, but which is in very positive development, and that is health. In this quarter, we have delivered a lot to Health Nord, Health Mid, Health West and Norwegian Health Network. Then I will come back to a project we have also delivered on health. And then I had thought of sharing some projects and some deliveries that we have delivered this quarter. Medihjelper was launched this quarter. Medihjelper is a solution developed in cooperation with VIS, Vestlandet Innovationsselskap, Helsebergen and Universitetet i Bergen. This is a solution that will bring awareness to clinical studies easier. This also makes it easier to participate in clinical studies. Access to information and knowledge about clinical studies has been very difficult, both for patients to gain insight into, but also for health professionals and doctors. For serious patients, participation in clinical studies be the last help and the last hope when well-known treatment methods are not enough. This has been a service design innovation project where the customer wanted a partner who could be involved from idea generation to realization of the solution and to implementation. We are very proud that we have been able to be involved and realize such a solution that will be so important for people in quite difficult periods of their lives. Then we have Baren Swartz. Baren Swartz is a customer we have had the pleasure of working with for many years. In the quarter, we got renewed trust from Baren Swartz, which means that we will have the pleasure of continuing to work with Baren Swartz for many years to come. Baren Swartz is under Kystverket. In short, they collect, develop and share information about Norwegian coasts and marine areas. They provide services for people who work on the lake, and people who use the lake for their free time. Some examples of the services that Baren Svartz provides for us, is wave washing for exposed coasts. It is used a lot by passenger traffic, but also by those who use the coast for their free time. They provide a lot of information for fisheries. And then there is information about seafood, salmon, and fish health related to this, and the environment, and much more. We at Bovee provide a multidisciplinary team in this, so here we provide the entire range of services in Bovee, from design, development, security is important, operation and administration. In addition, we provide all project management related to all these multidisciplinary teams we provide there. Vi er veldig glad for at vi har fått lov å være med Baren Svarts så langt, og så ser vi veldig fram til de årene vi skal jobbe med den videre nå. Og der står det mye spennende på programmet. And then we have our biggest customer, Equinor. And I mentioned that in oil and gas, we are very proud of the development we see, in that we work with renewable. And here we are allowed to be with Equinor on the journey they make, from being a company with a significant footprint in oil and gas, to becoming an energy company with a broad portfolio of renewables. It is incredibly exciting. We are allowed to work with design and, after a while, also the development of the systems that will operate and maintain. some of the world's largest windmill parks. And the perspectives here are quite enormous. An example here is Dogger Bank, which is one of the fields that Equinor is engaged in outside the coast of Yorkshire. The sea depth here is 20 to 60 meters, so Equinor gets good use of solid offshore competence. When the field is finished, this field alone will cover the energy needs of more than 6 million British homes. And this is just one of the fields that Equinor is engaged in, and just one of the fields we are allowed to be part of the digitalization dimension in the establishment of these fields. Then we have CO2 capture. Grenland is Norway's largest industrial region, with more than 6000 industrial jobs connected to the region. We have several large industrial companies in the region. We have Jara. We have Eramet, which produces bearings for the steel industry. We have RecSolar, which produces siliceum blocks for the solar cell industry. Norshem with cement. We have Ineos and Inovin, which produce plastic products. This sound alone, This is quite impressive. They account for 20% of all climate gas emissions in Norway from the industry. Now the industry is working together in a joint carbon capture and storage project. We are a digitalisation partner in this project. The goal with this is to concretize what needs to be done to capture CO2 from large emissions sources in the region, and lay the foundation for a joint investment, where you create a joint infrastructure for carbon capture in that region. Our role in this is that we are a digitalization partner, which means that we work with quite exciting things. We work with a lot of sensor surveillance, IoT, this goes into data platforms. It is digital twins, and it is integrations towards both production and logistics systems. So this is exciting. In relation to the Paris Agreement and Norway, it is clear that this is an important measure, and we are very pleased to be involved in building and creating these digital solutions in this project. So the exciting things we are working on were the four projects I wanted to highlight. Then we have our course business, which we have had the habit of promoting, because our course business has been in an enormous transition. Before the pandemic, this was a purely physical classroom business. I told you what kind of transition they were in during the pandemic. What I am very happy to be able to tell you now is that we are back on exactly the same salary, But now it's all digital. It's not a classroom course that has been run now. We deliver everything digitally. And that creates profitability, and it creates satisfied course participants. What's exciting about this in the future, and it's about the new workday, is how we will be able to combine these two dimensions of the physical classroom teaching with the digital. And that's what we're working on now, so I think that will be an even better course offer for all of our course participants. And again, I want to point out to our course business how important it is to reach far beyond our existing customer base. So living by sharing is reality, and our course business stands for a large part of that sharing. I have been in the sectors, and I would like to highlight the four largest sectors. We have been talking about oil and gas, and it is growing well. I am very happy that a lot of that growth is within renewable energy, especially in Equinor. Some of the growth we see here also comes from businesses such as Aker and Konoko Philips, but the main part is probably from Equinor and what we work with within renewable energy. Then we have the public sector, which has always had a solid foothold and continues to do so. That is important for us, a very important sector. Then we have energy supply. And in energy supply we have the biggest growth, and that is businesses such as Statnet, Havslund, and Statkraft. Then we have the fourth sector, and here we actually have a relatively similar distribution, so here some change places. But in this quarter, it is information and communication that grows forward as the fourth largest sector. There are some customer engagements there that are more important than others and that stand for that growth. And fun and nice is that one of our partnerships with Norway's unification, Cognite, is what contributes to the fact that information and communication is our fourth largest sector. But as I said, transport is also a sector that is relatively similar in size. Again, very happy with the sector distribution. We are on solid ground. great to build on in further development. A little about customer mix. In recent years, we have reported a mix between variable contracts, i.e. running hours, and fixed price. We see that it is, in all cases, 99.3% on the running. Not so surprising really. I said that our most important customers become more important, and this quarter also marks such a development. So here we see that our 10 most important customers are around 50% of our turnover. And that is a fairly strong development. This is about us being in sectors that have large and strong digitalization initiatives, and they need more. And we have more to give. All our diversity is what makes the existing customers buy more from us. Customer development. It is the same picture. We work largely with our existing customers. We also get new customers. And on new customers, I would say that again, I have to mention Cognite, which is one of the customers that contributes to the development within the new customer segment. But also customers as a professional association contribute to this development. Then we have all our business and our local business. We are a regional company. We believe in the closeness of customers. We believe in developing services and competence from the local needs and possibilities that exist. It has been our way and it has been our development as long as we can look back. And then it is important for us to serve our customers well and locally. In addition, this also gives us a good opportunity to recruit locally and build solid housing businesses around the country and in Sweden. In this quarter, it is good to say that all regions have developed very positively, so it is good news from all regions. Good growth in the number of employees, and good growth in turnover. Then we have a data company that we have talked about in most of the quarter's presentations. This is Sesam. It is, as I said, a private data company. They deliver a component to data platforms that handles what is about master data management. They deliver this as a software as a service, so it is a slightly different business model than what we in Øvrebove are focused on. The fact that SESAM delivers its solution as a software as a service also means that they have a different model to go to the market. SESAM delivers through good partners and develops and works with and develops a good partner network. In that partner network, I live with only one partner among many equal partners. So here we see Netcompany, Computas, Cognizant, Kapp, Sopra, and Cognite also working with Sesam. Good development on that, and also new partners that are coming this quarter. And then, something I am most proud of and most happy about, is the development in relation to the number of employees. We went through the key figures, we grew with 64 new residents this quarter. That's 154 people up in the last 12 months, which is a very good development, and if you look the illustration in the lower right corner, you can see how the pace has increased quite strongly and markedly this quarter. We are very concerned about this. We are a company that is built around good people. The fact that we have a culture and colleagues who create a positive and good assessment, which makes us able to attract more and more good people, is the most important job we do. So, very positive development this quarter. Something we are very, very happy about. Then we have come to the numbers. And then it is a great pleasure for me to just give the floor to Trude, who will take us through that.

Thank you very much, Per Gunnar. It is very nice to be able to present such good results for BOV in my first quarter presentation. I thought I would first go through the key statements before I dive into operating revenues, and then look at operating results, and then we will take the content stream to the end. If we now look at the key figures, BoV had revenue for this quarter of 676 million kroner, which is a change of 13.4% compared to last year's second quarter. It also gave a revenue result of 83.8 million kroner, with a revenue margin of 12.4%. In the last six months, we have had the highest turnover of 1,371,9 million kroner, which is a change of 10,9% from the first half of 2020. This has given a operating margin of 12,7%. It should also be mentioned that the first half of 2020 was one day more, because it was a year of impact. But let's take a closer look at the top line. As mentioned, we had an increase in operating income of 13.4%. The most important part of this comes from our own consultants, who are out to about 85% of our turnover. Here we have had an increase of 15.2%, which amounts to 574.9 million kroner. New Lundekonsulatet has had a relatively low increase, which has given an income of 83.2 million kroner. The total income has been 17.9 million, and this is a small share of our turnover. Let's look at the income from our own consultants, which is the most important. Here has been an increase of 15.2%. The positive effect is due to an increase in the number of employees, with 8.6%. There have been 154 more employees than last year. And as a result of the COVID-19 pandemic, the hourly rate has dropped somewhat in Q2 and Q3 2020, but now we can report a positive effect with an increase of 0.6%. Another positive effect has been an increase in the turnover of 2.2% points, which means that it has been at a historically high level. The number of working days is the same in these two quarters. If we look at the analysis of the income, we can look even closer at the operating income. We see that an increase of 8.6 million to employees has given an increase of 47 million in income. The factoring rate has been historically high, has given an increase of 15.3 million, and as a result of lower holiday expenses in this quarter than last year, has given an increase of 4 million kroner in income. We can also see that an increase of 0.6% in the team price has given them 3 million in increased revenues. If we then look at the operating results, as mentioned, the operating result was 83.8 million, which is a operating margin of 12.4%, which is something lower than last year. The difference lies among other things in the influence of the COVID-19 pandemic on the operating costs, so it is a passing effect. People have started to return to their offices, which is very happy. We have increased the number of employees, which means that there has been a lot of focus on recruitment, so the recruitment costs have increased. In addition, this has been an increase in the personnel costs, and this can be seen as a result of the fact that last year the unemployment rate was reduced in May and June, as a result of the pandemic, which resulted in 7 million. In the past, we have had an unpaid salary of 3.6, which can be compared to an increase in the team price of 0.6. So we are working continuously to evaluate this difference. If we look at the change in income's impact on the operating results, if we look at the result effect, we see that an increase in the number of employees with 8.6 percent has given a positive effect on 9.2 million. What counts most this quarter is the increase we have had in invoices at 2.2 percent points, which has given a positive effect of 10.6 million. We also want to highlight the fact that the team rate has risen by 0.6 percent, which has given a positive effect of 2.1 million. Finally, I would like to point out the constant flow from the operation, which was 42.1 million in this quarter, which is significantly lower than last year, which was 163.8 million. One of the reasons for this was that the constant flow from last year was greatly affected by the measures in relation to the COVID-19 pandemic, i.e. the deadline for employee benefits and the company tax was issued in the third quarter. Konstantstrømmet for the last 12 months was at 303.6 million. I will now give the floor back to Per Gunnar, who will tell us more about the future outlook.

Thank you, Trude. I will tell you a little about the outlook for the future. Vi har endelig fått kjenne på at pandemien slipper, noe i hvert fall. Det betyr at vi har fått mange folk tilbake i prosjektene, og vi har fått mange folk tilbake i lokalene. Og jeg må si, from a personal dimension, which I have to say has been incredibly enjoyable. Meeting people at work, experiencing smiles in the hallway, experiencing sitting in the same meeting room and discussing ideas and thoughts in the future. I think that is an energy that permeates the whole everyday life in Bovee now. It is clear that we have learned a lot in the time we have left behind us. We have learned a lot about working digitally. And I think that is an important job now. Now we are going to form a new working day. This means that we are going to combine exactly what I described, which we value very much, the community and the interaction where we meet each other, together with the interaction that happens digitally. That will be the job now. It is not a job that is done tomorrow. I think we will get to work with it for many months to come. It is exciting, it is educational, and it is about new ways of working. I have shared with you how it goes in our most important sectors, and that is very enjoyable. In the sectors we are engaged in, we see long and solid digitalization initiatives, and we don't see any end to that. We see a public sector that is increasingly in demand. We see energy supply that concerns the entire electrification of Norway, and there is a great demand. big future prospects. In addition, an oil and gas sector that is developing rapidly, and as I also shared earlier, an oil and gas sector that extends its engagement very much into the renewable. On several of the projects I shared with you, we talked about the cross-examination of teams that BoVet offers, and we are increasingly experiencing that. And that is the combination of design competence with communication, with technology and advice. That combined makes up the cross-examination that we offer, and that we experience that the customers And as we can see in the growth within our most important customers, that is what we are growing on. We also have a lot of demand within a number of areas of our expertise. Finally, one of the most important things for us is to continue the work that is about making BOV a place to be, a place where people get the development they want, and where they are pleased to interact with good colleagues. So creating that workplace and that working environment And the review that makes us attract more and more talented people is job number one. So with that, I would like to conclude by saying thank you to all of you who have been with us on this quarter's presentation. And I welcome you in a few months to the next quarter's presentation. But thank you very much for us.