Multiconsult : 2023 | Q2 Report (print)

2	Q2 2023

CEO COMMENTS

• The confirmation of Multiconsult as a preferred employer puts us in a strong position to attract and retain the right talents, and we increase the number of employees by 10.3 per cent. The new hires alongside our talented, dedicated employees form a strong foundation for solving the challenges facing us.

Multiconsult delivered a good quarter with strong organic growth of 10.9 per cent. The overall demand for our services has been strengthened and is reflected by strong sales and a 6.2 per cent increase in the order backlog from the first quarter. The increased revenue is mainly driven by higher billing rates and increased capacity. The EBITA for the quarter was NOK 55.6 million (EBITA margin was 4.8 per cent) and is affected by one less calendar day. For the first half of the year the EBITA margin remains high at 11.0 per cent.

The segments Region Norway and Region Oslo maintained a high activity level and the Polish business has a positive development. Financial performance in LINK Arkitektur was at the same level as last year but remains challenging and the improvement programme continues.

We are pleased to report that the demand for our services remains robust, leading to the continual strengthening of our order book. Order intake in the quarter increased to NOK 1 572 million, an increase of 28.5 per cent compared to the same quarter last year. The order backlog now stands at NOK 4 943 million, an increase of 6.2 per cent from the first quarter and 40.4 per cent compared to the end of second quarter last year.

Through the acquisition of 70 per cent of A-lab, we strengthen our position in architecture and urban development as a tool in social development. Interdisciplinary collaboration between the best expertise environments is important when solving the challenges facing society.

The contract for the road project E10 Hålogalandsvegen was signed during the quarter, and we are proud to be part of the largest infrastructure project in Northern Norway, a project that reduces accidents, provides safer and better access, and ties the region together. The project will ensure regional development and provide better conditions for business. We confirm our strong position within hospital with two new hospital projects, one in Sweden and one in Denmark. We are part of the team to develop new building for psychiatry,

habilitation, advanced nursing care in the home and palliative care within the Malmö Södra Hospital area. LINK Arkitektur Denmark will develop a new psychiatric hospital in Viborg, a project with high ambitions to design the most optimal physical framework for the treatment of mental disorders. In Poland we have been awarded one large railway contract and one large road contract.

Multiconsult is actively engaged in various energy transition and efficiency projects, and involved in research and development projects to be part of the forefront of knowledge and enable us to offer innovative future-oriented solutions in our projects.

The confirmation of Multiconsult as a preferred employer puts us in a strong position to attract and retain the right talents, and we increase the number of employees by 10.3 per cent. The new hires alongside our talented, dedicated employees form a strong foundation for solving the challenges facing us. The demand for Multiconsult's services remain strong and we are well positioned to meet the challenges ahead in scaling up on the solutions regarding climate adaption, energy efficiency and renewable energy. As more priority and attention is given to social sustainability, our role in large transformation projects for hospitals, schools and housing is strengthened and we have a solid portfolio within these areas.

Grethe Bergly

CEO of Multiconsult ASA

Q2 2023	3

HIGHLIGHTS Q2 AND FIRST HALF 2023

SECOND QUARTER

• Good quarter with strong organic growth, strong operational performance and results in most segments
• Net operating revenues increased to NOK
  1 153.8 million (1 048.5), a y-o-y growth of 10.0 per cent. The organic revenue growth for the quarter was 10.9 per cent
• EBITA of NOK 55.6 million (74.7) down NOK 19.1 million y-o-y, affected by one less working day. EBITA margin equal to 4.8 per cent (7.1)
• Other operating expenses of NOK 150.3 million (132.7)
  • Other opex ratio (ex. IFRS 16) of 17.2 per cent (16.9)
• Strong order intake of NOK 1 572 million (1 224)
• All-timehigh order backlog of NOK 4 943 million (3 521)

• Billing ratio of 72.1 per cent (71.9), up 0.2pp
• Full-timeequivalents (FTE) increased by 8.0 per cent, to 3 360 (3 112)
• Strategic acquisition of A-lab, a leading Norwegian architecture firm - announced in June
• Strong position as a preferred employer confirmed in 2023 Universum survey
• Market outlook is still considered good - uncertainty increased compared to previous quarter
• During the quarter a political decision was made to suspend work on the new emergency hospital in Växjö, Sweden

FIRST HALF 2023

• Net operating revenues of NOK 2 464.0 million (2 186.6), a y-o-y growth of 12.7 per cent. The organic revenue growth for the period was 11.6 per cent
• Strong EBITA of NOK 271.9 million (243.9), equal to an EBITA margin of 11.0 per cent (11.2)
• Order intake at a high level of NOK 4 146 million (2 691)
• Order backlog at a high level of NOK 4 943 million (3 521)

• Other operating expenses of NOK 290.5 million (259.3)
  • Other opex ratio (ex. IFRS 16) of 15.7 per cent (16.0)
• Net profit of NOK 194.1 million (179.4)
• Earnings per share 7.07 (6.55)
• Full-timeequivalents (FTE) increased by 6.2 per cent, to 3 289 (3 098)

4	Q2 2023

CONSOLIDATED KEY FIGURES

Amounts in NOK million (except EPS and percentage)	Q2 2023	Q2 2022	H1 2023	H1 2022	FY 2022
FINANCIAL
Net operating revenues	1 153.8	1 048.5	2 464.0	2 186.6	4 189.2
Employee benefit expenses	894.2	790.7	1 793.0	1 582.2	3 051.0
Other operating expenses	150.3	132.7	290.5	259.3	528.1
EBITDA	109.3	125.0	380.5	345.1	610.2
EBITDA margin	9.5%	11.9%	15.4%	15.8%	14.6%
EBITA	55.6	74.7	271.9	243.9	408.5
EBITA margin	4.8%	7.1%	11.0%	11.2%	9.8%
Reported profit for the period	36.0	57.8	194.1	179.4	303.0
Earnings per share (EPS)	1.30	2.11	7.07	6.55	11.06
OPERATIONAL
Other opex ratio (ex. IFRS 16)	17.2%	16.9%	15.7%	16.0%	17.0%
Billing ratio	72.1%	71.9%	71.5%	71.6%	70.6%
Number of employees	3 585	3 249	3 585	3 249	3 353
Full-time equivalents (FTE)	3 360	3 112	3 289	3 098	3 134
Order intake	1 572	1 224	4 146	2 691	5 195
Order backlog	4 943	3 521	4 943	3 521	3 608
Net operating revenues
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Q2 2023	5

SECOND QUARTER AND

FIRST HALF 2023

Multiconsult's second quarter EBITA was NOK 55.6 million, which gives an EBITA for the first half of 2023 of NOK 271.9 million. The EBITA margin for the quarter was 4.8 per cent, and 11.0 per cent for the first half of the year. The result was positively impacted by increased capacity, higher billing rates and increased billing ratio. Solid operational performance and a high activity level throughout the quarter resulted in a growth in net operating revenues of 10.0 per cent to NOK 1 153.8 million, mainly driven by strong organic growth of 10.9 per cent. Solid order intake during the quarter provides a strong and diversified order backlog for Multiconsult going forward. Acquisition of A-lab was successfully completed and was included in the financial accounts with effect from the last day of the period, 30 June 2023.

FINANCIAL REVIEW

Multiconsult group ("Multiconsult" or "the group") comprises Multiconsult ASA ("parent company" or "company") and all subsidiaries and associated companies. Comparable text, and figures in brackets reflect the same period prior year or relevant balance sheet date in 2022.

Group results

Second quarter 2023 Multiconsult group

Net operating revenues came in at NOK 1 153.8 million

(1 048.5), an increase of 10.0 per cent compared to the same quarter last year. The organic revenue growth amounted to

10.9 per cent adjusted for calendar effect and acquisition. The increase in net operating revenues was mainly driven by higher capacity, reflected by an increase in full-time equivalents (FTE) by 8.0 per cent. The majority of the increase in full- time equivalents (FTE) was organic growth. Additionally, higher billing rates and an increased billing ratio made positive contributions to the growth in net operating revenues.

Operating expenses consist of employee benefit expenses and other operating expenses. Operating expenses increased by 13.1 per cent to NOK 1 044.5 million (923.5) compared

to the same quarter in 2022. Employee benefit expenses increased by 13.1 per cent due to ordinary salary adjustment, net recruitment, and higher cost from the increased employer contribution tax of 5 per cent (for salaries/compensation above NOK 750 thousand) in Norway. Other operating expenses increased to NOK 150.3 million (132.7), an increase of 13.2 per cent partly due to higher office expenditure and general cost increase related to inflation.

EBITDA was NOK 109.3 million (125.0), a decrease of 12.6 per cent compared to the same period last year, reflecting an EBITDA margin of 9.5 per cent (11.9) in the quarter.

EBITA was NOK 55.6 million (74.7), reflecting an EBITA margin of 4.8 per cent (7.1) in the quarter.

Net financial items were an expense of NOK 11.3 million (5.5). The increase was related to a net currency loss and higher interest rates and an increase in other financial items compared to second quarter 2022.

Group tax rate was 23.1 per cent (22.0).

Reported profit for the period was NOK 36.0 million (57.8). Earnings per share for the quarter were NOK 1.30 (2.11).

Calendar effect. In the second quarter of 2023 there was one less working day compared to the second quarter 2022. This had an estimated negative impact of NOK 22.5 million on net operating revenues and on operating results for the group when comparing the figures.

First half 2023 Multiconsult group

Net operating revenues increased by 12.7 per cent to NOK 2464.0 million (2 186.6), when compared to the same period last year. The billing rates continued to improve and contributed positively on net operating revenues. Billing ratio came in at 71.5 per cent, down 0.1pp. Organic growth in the period was 11.6 per cent, adjusted for calendar effect and acquisition.

Operating expenses consist of employee benefit expenses and other operating expenses. Reported operating expenses increased by 13.1 per cent to NOK 2 083.5 million (1 841.5) compared to the first half year of 2022. Employee benefit expenses increased by 13.3 per cent and came in at NOK

1 793.0 million (1 582.2), an increase mainly driven by net