Ladies and gentlemen, welcome to the Fourth quarter and Full year 2019 Audiocast for Multiconsult. My name is Mirza Koristovic, and I'm Head of Investor Relations. Today's audiocast will be held by the CEO, Grethe Bergly, and the CFO, Hans-Jørgen Wibstad. Today's session can be accessed on our webpage under the IR section. The presentation will last for approximately 30 minutes, and we will open up for questions through the web after the presentation. With that, I leave the word to Mrs. Bergly.
Thank you, Mirza, and welcome everybody to this presentation of Multiconsult's Results for the Fourth Quarter and Full Year of 2019. If we look at the highlights for 2019, it's important for me to remind everybody that it marks the beginning of a turnaround for Multiconsult. To some respect, this year's result has a reflection on this. We have our 18-month nextLEVEL improvement program that is on track. It's one important activity to take us back on the profit level that we are aiming at. We come in with a weak result for the fourth quarter. I'll give you some more details on that later. We also leave this year with a record high order backlog, which gives a very good and solid foundation for the 2020 production. We also continue to deliver outstanding solutions to our customers. This is how we make our profit.
Continuing this commitment is extremely important for us. This picture represents one of the future build projects that we are putting our efforts into having knowledge to solve for our clients. This is a zero emission building for students in a Norwegian town of Ålesund. Going through some of the projects, it's important to show you that we are positioned to take on challenging projects that we think will give the solutions that are facing us as a society in the near future. Up in the left-hand corner, you see the Svalbard community that is on a transition from a carbon-based to a renewable energy source, and Multiconsult has had an important role in assisting on this transition. You also see a large road project. It's a kind of contract that we are seeing more and more where we are employed directly by the contractor.
In this case, on E16, we are working with Skanska on a 10 km road stretch. In the other corner, you see down at the bottom, you see Fredrikstad High School and Arena. This is a very important project for the community of Fredrikstad, which Multiconsult and LINK won together, and it will provide this community with a very important meeting place in years to come. Last, you see some examples of offshore wind. We are part of the transition, where we see that we can use the skills and the knowledge that we have gained through our work in oil and gas to take on finding new solutions for offshore wind, both for a wind farm just offshore Norway and also in a wind farm offshore of New York. If we look at the financial highlights, the fourth quarter came in with the good project deliveries.
We also see that the writedowns have reduced compared to last quarter. We come in with a record high backlog. Our net revenues has grown 1.4% and come in at NOK 904.5 million. There is a weak EBIT of NOK 8.7 million, to a large extent impacted by low billing ratios, both in Multiconsult and LINK, and also some writedowns at the end of the quarter from LINK. Looking at the full year results, we come in at a revenue growth of 3%, leaving us at NOK 3.4 billion and an EBIT of NOK 106.3, which reflects an EBIT of 3.1%. There's been a satisfactory order intake in 2019, and there will be a proposal for the general annual meeting of one NOK per share. If we look more detailed at the order intake. This represents a good balance for us.
We have an order intake of NOK 1.3 billion, which is the second highest that we've experienced since the IPO. The balance between the three larger business areas is good, and I'm very pleased to see that buildings and properties are up. As in Q3, you might remember, we had a lower sale. There will always be fluctuations from one quarter to another. For us, this quarter represents a good balance. We see a good long-term pipeline across most business areas. We also recognize that there are some uncertainties in the short-term tender pipe. Some have reflecting that we are seeing more uncertainties in Norway in relation to geopolitical issues. The key order intakes this quarter has been a good balance between our 2 largest business areas, properties and infrastructure. One big road project where we work with Skanska, a very interesting one for the rail authorities in Polska.
One big Fredrikstad High School and Arena, also some call-offs on the frame agreements that we have with Forsvarsbygg on their Haakonsvern construction. One good sale on Northern Lights, which is a CO2 capture project. As you can see, our backlog is increasing. It's at an all-time high, we need to mention that there are some variations, both with respect on the time horizons and with respect to how it's distributed, both amongst our business areas and geography. As you can see, the big areas for us still remain building and properties and transportation and infrastructure. I'd like to remind you all that in addition to this backlog, there are also future call-offs that will be taken in from larger frame agreements, but this is not added to our backlog until we get a call-off from our clients.
The organization, we continue to grow, albeit at a much lower rate than previously. This is in accordance with our goal strategy. I also like to remind you all that we have a whole new team as of 1st of October 2019, who are starting up, helping us on the turnaround that we are facing. We continue to be the number 1 preferred most attractive employer in the industry. This is important looking at the future, because attracting the best minds in a very competitive environment is important for sustainability also in the future. We are number 1 in our industry, and we are keeping our number 2 position overall for all companies in Norway. We also continue to have employees who excel in the more academic and professional world.
Erik Werner, he got an honorary award, Årets Ildsjel, Enthusiast of the Year. He has a long track record of working with environmental issues, not least working on materials and looking at recycling of materials, which we believe will be an extremely important area of expertise in the future. We have two young employees who both awarded Best Master of the Year on an event in 2019. With that, I leave you all to Hans-Jørgen Wibstad, our CFO, who will go through the figures in more detail.
Yes, good morning. I will go through the fourth quarter figures as well as the full year figures for 2019. Starting with the fourth quarter, revenues is up 1.4% to NOK 904.5 million, and the growth is purely organic. The growth is at a lower level than we have seen recently, and it's also a reflection on the relatively low billing ratio that we had during this quarter. The EBIT came in at NOK 8.7 million, which is a 1% margin. It's a reflection of the relatively low level of billing ratio as well as certain costs in the quarter relating to, in particular, LINK arkitektur, which had one-off elements also, both in terms of some special write-downs in the area of NOK 5 million. As well as a settlement which has impact on the cost. The OpEx excluding IFRS adjustments is up by 1.8%.
The good news is that the other OpEx is down, and we're starting to see the impact of the nextLEVEL initiatives, where we're seeing that despite a revenue growth, we're seeing that the other OpEx element is coming down. That's a positive. The other positive I would like to mention is the level of write-downs, which is at 1.9% or NOK 16.8 million for the quarter, which is much lower than the same quarter in 2018. A significant portion of that particular write-down, namely about NOK 5 million, is related to LINK, which has very high write-downs in the quarter. For the year as a whole, it's at a normal level. I would like to go through just the bridge, trying to compare the fourth quarter this year with the fourth quarter of 2018. Starting with the NOK 8.7 million of reported EBIT.
We have some one-off costs in the quarter of NOK 4 million IFRS effect, which has a positive impact relative to last year. Which takes us down to an adjusted comparison with the fourth quarter 2018 of NOK 8.3 million, which is 0.9% margin versus 1.1% margin for the fourth quarter 2018. We're also seeing in the quarter that we have a very positive development on the net interest-bearing debt, which is reduced from NOK 283 million to NOK 91.6 million, which has to do with fluctuations in working capital positions. I'd like to go over to the full year, 3% growth overall to NOK 3.4 billion. Again, purely organic growth, and it's growth which is 3.6% adjusted for the legal settlement with Stortinget, which has also an impact on net revenues.
It's a lower level of growth than we have had historically, but we are at the same time, we're closely trying to monitor to emphasize margins rather than growth. The EBIT came in at NOK 106 million, which is 3.1% margin. It's also impacted by the legal settlement in the second quarter, IFRS and severance agreements, but is of course at a low level. On a comparative basis, it is a moderate improvement from the full year 2018. The OpEx, excluding IFRS adjustments, is up 3.4% and following the general salary adjustment levels in Norway. Again, on the other OpEx, we're seeing that the level of growth in that section is leveled off, and as I mentioned in the fourth quarter, is down. On the full year basis, it's only marginally about the same level as it were in 2018.
Overall, we're starting to see the net effect of the nextLEVEL initiatives. For the full year, the net write-downs is NOK 81.2 million, up from 2018. Excluding the Stortinget settlement it's down, it's 1.8%. The bridge between the years, starting with NOK 106 million of reported EBIT. We have the legal settlement adjustment. We have one-off restructuring costs of NOK 14 million and the IFRS effect, which we didn't have in 2018. Which brings us on a comparable basis to an adjusted margin of NOK 120 million, comparable with NOK 99 million in 2018, which is an improvement of NOK 21 million or 0.5%. Summarizing some historical levels, revenue is relatively stable, we're seeing that we have a relatively higher revenue in the fourth quarter, which is seasonal. At least we're seeing that we have a relatively good activity level when it comes to revenues.
On the EBIT, we see clearly that we have been through three poor quarters, second quarter, third quarter, and fourth quarter, while the first quarter of 2019 had a reasonably high EBIT. That is one of the key backgrounds for the nextLEVEL initiatives as well as additional initiatives that Grethe will talk about later. The billing ratio is very disappointing as we have talked about at just above 68% for the quarter, which is significantly below the same level in 2018. We're also seeing that the last two quarters or second half of 2019 was on overall at a low level, which again is something that is being challenged with the nextLEVEL improvement program. Number of employees is up. It certainly has flattened out, which is good, which is how we want it to be in many ways.
It's up by 2% on the year-on-year basis, flat from third quarter to fourth quarter. That increase in particular does not happen in Norway. It happens in Poland in particular, which has a very healthy growth. That's representing the highest portion of the increase. Just bring you through the bridge overall from last year to this year, starting with NOK 99 million of EBIT in 2018. We have a positive effect from capacity increase of NOK 41 million. We have positive impact of writedowns, excluding Prinsens gate 26 or Stortinget of NOK 5.7 million, and we have the negative effect of Stortinget, which is NOK 20 million. We have the big factor into this is the billing ratio, which has been at a disappointing level in 2019, which has an impact of about NOK 49 million, compared with the same year, compared with 2018, that is.
Other effects including improved OpEx, IFRS, that brings us to NOK 106 million of reported EBIT for 2019. Going through the business units quickly. The Greater Oslo Area has an increase in operating revenues of 1.9% to NOK 1,573 million, which is a reasonable growth. Margin-wise, EBIT is up on an adjusted basis where we're adjusting for IFRS 16 and the Stortinget matter. It's up from NOK 57.5 million to NOK 90.5 million, equivalent to a 5.8% EBIT margin, which is up from 3.7% margin. It's a reasonable year for the Greater Oslo Area, although the margin is not at the level where we were aiming at. Billing ratio is down from 70.5% to 69.1%, the number of employees is pretty flat on a year-on-year basis. Regions Norway has a healthy revenue growth of 4.8%.
They have been on the margin side, EBIT side, they have had a more challenging year, where the comparable adjusted EBIT is down from NOK 50.1 million to NOK 44.9 million, and the margin is down from 4.7% to 4%. The main factors contributing to that is that Regions Norway has a billing ratio which is down from 71.4% in 2018 to 67.9% in 2019. It's worth saying that Regions Norway is more impacted by the regional reforms in Norway than any other area, where some of the decision-making processes for our customers has been delayed and postponed because of the reorganizations that are taking place during the second half of 2019 in particular. International, doing quite well. In particular, I would like to mention Iterio, which is in Stockholm, Sweden, and Multiconsult Polska, having a healthy growth, bringing the operating revenues to NOK 228.4 million, which is up 14.8%.
The margin adjusted is NOK 14.2 million versus NOK 8.1 million in 2018, equivalent to a margin of 6.3%, which is relatively good. However, the margin is significantly impacted by a more challenging situation in Multiconsult UK that has had a poor result in the second half, mainly due to some lower activity level that we believe is temporary. LINK, finally, on the business unit side, growth of 4.4% to NOK 535.8 million. An adjusted EBIT of NOK 18.3 million, which is an improvement from NOK 13.1 million in 2018. The margin is 3.4%, which is, of course, not where we want it to be. On the other hand, it's a very mixed picture between Norway, LINK in Norway that has had a good year, with the exception of the fourth quarter, while Denmark has improved but is still struggling.
In particular, Sweden has some challenges on the activity side and during the full 2019. Denmark and Sweden is impacting the figures relatively negative. Number of employees is flat, reflecting that there are some efficiency gains in the system. A few words on cash flow. Moving just on the working capital side, it's a negative, but NOK 19.9 million, reflecting a stable level of working capital during the year. It fluctuates significantly between quarters, but comparing year-on-year, it shows that the figure is flat. We have investments of NOK 61 million, which is slightly above depreciation, normal level. Then we have financing with dividend and repayment of debt in particular of NOK 78.1 million, which leaves us at the end of the year with an interest-bearing debt which is about NOK 30 million, lower or worse than it was at the end of fourth quarter 2018.
It has a very, very positive development in the fourth quarter of this year. Net interest-bearing debt improves from NOK 283 million to NOK 91.6 million. Overall, Multiconsult has a very solid financial position. We have NOK 320 million of undrawn facilities. We have very recently renegotiated our loan facilities with Nordea, giving us improved margins as well as improved covenants. I'd like to, in particular, mention that we have improved our gearing covenant from two times to three times, which is important for our flexibility and robustness. We also have in place a new three-year NOK 200 million revolving credit facility, replacing a term loan which was repaid every year. That has a bullet profile, so that is also a good thing for us and improves our robustness. Overall, we're in a position where we have a strong and solid balance sheet.
Finally, on the dividend proposals from the board to the shareholders meeting, the proposal is to have a dividend payout of NOK 1 per share for 2019, which represent a 77% payout ratio, which is historically at a high level in percentage of net profit. Our dividend policy is 50% as a guideline. It shows that we have a consistent and historical dividend payout ratio. A lot of thought has gone into this figure. We think, we believe, and the board believes that in the situation that the company is in at the moment, it is prudent to bring down the dividend level from NOK 150 to NOK 1, still keeping it at a historically high level of payout ratio of 77% of net profit. Adjusting for the one-off on Stortinget cost, the adjusted dividend payout is 53%. That completes my section. Grethe?
Thank you. As announced on the Capital Market Day, we have initiated an improvement program called nextLEVEL. I will now give you some more details in how we are performing. It is important for us to remind you all that the main focus is for us to reach the target that we have set on an 8% margin in the short term and aiming at 10% margin in the long term. That is the commitment that I have and my management team have. nextLEVEL is one of the main initiatives on this. If you look at progress, in the middle of February, we have now committed NOK 55 million of the NOK 150 million that we aim at by the end of Q2 2021. This NOK 55 million have not quite yet reached our bottom line. We are ahead of planning with regard to implementation.
We will, throughout the year now, continue to add more committed, and we will also have executed more of the NOK 150 million that we have set out to achieve. Looking at it in more detail, we had two main areas that we talked about. It's cost out and operations. With respect to cost out, we have, by the mid of February, committed NOK 45 million. 20 of this is related to offices and IT, NOK 15 million within travel and professional services, and NOK 10 million in the area of miscellaneous or others. In this, we also include reductions with respect to staff. If you look at operations, we have, by mid-February, committed NOK 10 million, and all of this is in connection with adjusting the organization. The other two areas within operations is operational efficiency and reduced impairment.
We have seen some effect of this by mid-February, we will not report until we've seen that it is a trend and we are absolutely certain that the full effect will hit our bottom line. To sum up, looking at ahead, we leave 2019 with a very high order backlog, but there are variations across the business areas. There is a good long-term market outlook across most of our business area, and we see a strong, good tender pipeline over the next 12 months. There are, however, some uncertainties with respect to growth in some areas, and in particular, we now like to mention within the building and properties, which also includes our architectural services. The public reforms that is underway in Norway is adding some uncertainty in the short term. The summary for 2019, it's been another year of growth and outstanding solution to our customers.
We start the year of 2020 with a record high order backlog. We had a weak fourth quarter, mainly related to our billing ratio, but also some write-downs and other effects. There is a good long-term outlook, but there are some short-term uncertainties. We are at the beginning of a turnaround. We are committed to reaching the financial targets that we've set. We have got commitment in the whole of our organization. NextLEVEL, as introduced in the Capital Market Day, is on track. Thank you.
We will now go into the Q&A session. I see there is one question on the web. The committed cost reductions, is this another way of saying implemented cost cuts? Are these just planned cost cuts, not done yet?
It's a mixture, actually. NOK 55 million is what we committed, and some of it is already implemented, and the rest will be implemented through the year.
Yes. I think just to add to that, these are decisions that have been made, and they're not planned, but they have been made, but they're not, as Grethe says, not all of them have been implemented and can be seen in our figures.
Thank you, Grethe and Hans-Jørgen. This concludes our session for today. There were no more questions. Thank you very much for your attention, and have a nice day.