AF Gruppen

Quarterly Report • Nov 10, 2023

Third Quarter 2023 AF Gruppen ASA 3RD QUARTER 2023

10 November 2023

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From the CEO

AF Gruppen delivered results below expectations in the third quarter, and we have varying performances in our units. The challenges in Sweden continue, and we have made a downward adjustment of the project estimate for one offshore project. Despite this, many units are delivering solid performances, with strong profit contributions from the Civil Engineering and Energy and Environment business areas.

The AF culture is characterised by systematic work on health, safety and the environment. Safety is our number one priority at AF, and our goal is for everyone to get home safely from work every day. It is gratifying that the trend in serious incidents is moving in the right direction and that we have finished a quarter without LTI incidents. This shows that our goal of zero workrelated absence or serious incidents is achievable, but this requires us to maintain good risk management and a high level of compliance throughout the organisation.

AF has always been proud of its strength and ability to perform complex tasks. The group's entrepreneurial spirit has been characterised by the ability and willingness to think differently and to find better, more futureoriented ways to generate value.

OVERVIEW

• Revenues were NOK 6,907 million (7,537 million) for the 3rd quarter and NOK 22,152 million (22,638 million) year to date.
• Earnings before tax were NOK 103 million (263 million) for the 3rd quarter and NOK 408 million (898 million) year to date.
• The profit margin was 1.5% (3.5%) for the 3rd quarter and 1.8% (4.0%) year to date.
• Net operating cash flow was NOK 494 million (272 million) for the 3rd quarter and NOK 697 million (1,498 million) year to date.
• The order backlog stood at NOK 41,864 million (39,716 million) as at 30 September 2023.
• The order intake was NOK 4,078 million (5,249 million) in the 3rd quarter and NOK 24,251 million (23,707 million) year to date.
• Net interest-bearing debt (receivables) was NOK 1,381 million (-254 million) as at 30 September 2023.

REVENUES PER QUARTER (NOK MILLION) EARNINGS BEFORE TAX PER QUARTER (NOK MILLION)

SUMMARY OF 3RD QUARTER

Key figures (NOK million)	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
Operating and other revenue	6,907	7,537	22,152	22,638	31,205
EBITDA	270	404	854	1,306	1,937
Earnings before financial items and tax (EBIT)	128	271	447	907	1,409
Earnings before tax (EBT)	103	263	408	898	1,400
Result per share (NOK)	0.43	1.46	2.12	5.53	8.96
Diluted result per share (NOK)	0.43	1.46	2.12	5.53	8.96
EBITDA margin	3.9 %	5.4 %	3.9 %	5.8 %	6.2 %
Operating profit margin	1.9 %	3.6 %	2.0 %	4.0 %	4.5 %
Profit margin	1.5 %	3.5 %	1.8 %	4.0 %	4.5 %
Return on capital employed (ROaCE)1)	-	-	19.6 %	34.8 %	31.6 %
Cash flow from operating activities	494	272	697	1,498	1,460
Net interest-bearing debt (receivables)	1,381	-254	1,381	-254	329
Shareholders' equity	2,973	3,286	2,973	3,286	3,494
Total equity and liabilities	15,009	14,695	15,009	14,695	14,457
Equity ratio	19.8 %	22.4 %	19.8 %	22.4 %	24.2 %
Order intake	4,078	5,249	24,251	23,707	32,324
Order backlog	41,864	39,716	41,864	39,716	39,765
LTI-1 rate	0.0	0.9	0.8	1.2	1.1
Absence due to illness	3.9 %	4.0 %	4.1 %	4.5 %	4.6 %

1) Rolling average last four quarters

Business Areas

CIVIL ENGINEERING

REVENUE (NOK million) OPERATING PROFIT (NOK million) OPERATING PROFIT (%)

KEY FIGURES

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
Operating and other revenue	1,680	1,462	4,636	4,241	5,919
Earnings before financial items and tax (EBIT)	129	92	310	275	445
Earnings before tax (EBT)	135	93	320	272	440
Operating profit margin	7.7 %	6.3 %	6.7 %	6.5 %	7.5 %
Profit margin	8.0 %	6.4 %	6.9 %	6.4 %	7.4 %

NUMBER OF EMPLOYEES

ORDER BACKLOG (NOK million) CIVIL ENGINEERING CONSISTS OF

• AF Anlegg
• Målselv Maskin & Transport
• Eiqon
• Consolvo
• Stenseth & RS

AF is one of Norway's largest companies in the civil engineering market, and the customers include both public and private actors. Its project portfolio includes roads, railways, bridges, port facilities, airports, tunnels, foundation work, renovation and construction of concrete structures, power and energy plants, as well as onshore facilities for oil and gas.

Civil Engineering had a high level of activity and delivered very good results for the 3rd quarter with strong performances from several units. The Civil Engineering business area reported revenues of NOK 1,680 million (1,462 million) for the 3rd quarter. This represents a growth of 15 %. Earnings before tax were NOK 135 million (93 million). Year to date, revenues totalled NOK 4,636 million (4,241 million) and earnings before tax were NOK 320 million (272 million).

AF Anlegg had strong revenue growth in the 3rd quarter, with solid profit contributions from several projects. AF Anlegg has several major projects in production, and in general there is a high level of activity and good operational performance in the projects.

Målselv Maskin & Transport reported revenue growth and a very good result for the 3rd quarter. Consolvo delivered a result somewhat below expectations for the quarter. Eiqon had a lower level of activity compared to the same period last year and a weak result for the 3rd quarter.

Civil engineering had an order intake of NOK 1,092 million (1,157 million) in the 3rd quarter. The order backlog for Civil Engineering was NOK 19,441 million (11,887 million) as at 30 September 2023.

CONSTRUCTION

REVENUE (NOK million) OPERATING PROFIT (NOK million) OPERATING MARGIN (%)

KEY FIGURES

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
Operating and other revenue	2,285	2,631	7,549	8,029	11,090
Earnings before financial items and tax (EBIT)	93	100	256	199	322
Earnings before tax (EBT)	89	99	240	199	318
Operating profit margin	4.1 %	3.8 %	3.4 %	2.5 %	2.9 %
Profit margin	3.9 %	3.8 %	3.2 %	2.5 %	2.9 %

NUMBER OF EMPLOYEES

ORDER BACKLOG (NOK million) CONSTRUCTION CONSISTS OF

• AF Bygg Oslo
• AF Byggfornyelse
• AF Bygg Østfold
• Strøm Gundersen
• Strøm Gundersen Vestfold
• Haga & Berg
• AF Håndverk
• LAB Entreprenør
• Åsane Byggmesterforretning (ÅBF)
• Fundamentering (FAS)
• Helgesen Tekniske Bygg (HTB)

AF provides contracting services for residential, public and commercial buildings. Our services range from planning to construction and renovation. AF cooperates closely with customers to find efficient and innovative solutions adapted to their needs. The business area encompasses the Norwegian entities except for Betonmast and is mainly located in Eastern Norway and the Bergen Region.

The Construction business area had a decline in revenue of 13% compared with the same quarter last year. Construction reported revenues of NOK 2,285 million (2,631 million) for the 3rd quarter. The profitability for the quarter was in line with the same period last year. Overall, the business area reported a result for the quarter with earnings before tax of NOK 89 million (99 million), with a profit margin of 3.9% (3.8%). Year to date revenues totalled NOK 7,549 million (8,029 million) and earnings before tax were NOK 240 million (199 million).

Strøm Gundersen, Strøm Gundersen Vestfold and ÅBF delivered very good results for the 3rd quarter. AF Byggfornyelse, AF Bygg Østfold and Haga & Berg achieved good results. AF Bygg Oslo, AF Håndverk, LAB Entreprenør and HTB delivered results somewhat below expectations, FAS is the only unit with weak results for the 3rd quarter.

Construction reported three contracts to the stock exchange during this quarter. LAB Entreprenør has entered into an agreement for the expansion of Lagunen Storsenter in Bergen with a contract value of NOK 365 million excluding VAT after completion of the interaction phase. Strøm Gundersen has entered into a turnkey contract for the construction of a bridge over the Eidselva river with a value of NOK 147 million excluding VAT. AF Byggfornyelse has signed an agreement for the construction of an extension for the Salvation Army at Ensjø in Oslo. The turnkey contract has a value of NOK 120 million excluding VAT.

Construction had an order intake of NOK 1,150 million (1,304 million) in the 3rd quarter. The order backlog of Construction was NOK 9,335 million (11,844 million) as at 30 September 2023.

BETONMAST

REVENUE (NOK million) OPERATING PROFIT (NOK million) OPERATING MARGIN (%)

KEY FIGURES

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
Operating and other revenue	1,059	1,252	3,382	3,768	5,145
Earnings before financial items and tax (EBIT)	19	37	86	89	166
Earnings before tax (EBT)	25	41	102	91	174
Operating profit margin	1.8 %	3.0 %	2.6 %	2.4 %	3.2 %
Profit margin	2.3 %	3.3 %	3.0 %	2.4 %	3.4 %

NUMBER OF EMPLOYEES

ORDER BACKLOG (NOK million) BETONMAST CONSISTS OF

• Betonmast Boligbygg

• Betonmast Oslo
• Betonmast Trøndelag
• Betonmast Romerike
• Betonmast Røsand
• Betonmast Østfold
• Betonmast Innlandet
• Betonmast Buskerud-Vestfold
• Betonmast Asker og Bærum
• Betonmast Eiendom

Betonmast is a construction contractor with operations in the largest markets in Norway. The project portfolio comprises everything from major residential projects to commercial and public buildings. Betonmast is a major player in construction for the public sector and has specialist expertise in project development and collaborative contracts. Betonmast also has a property portfolio in Norway.

Betonmast reported a decline in revenue of 15% compared to the same quarter last year and a weak result for the quarter. Revenues were NOK 1,059 million (1,252 million) and earnings before tax were NOK 25 million (41 million) in the 3rd quarter. Year to date revenues totalled NOK 3,382 million (3,768 million) and earnings before tax were NOK 102 million (NOK 91 million).

Betonmast Røsand, Asker og Bærum and Østfold delivered good results for the quarter. Betonmast Trøndelag and Buskerud-Vestfold delivered results below expectations. Betonmast Boligbygg, Oslo, Romerike, and Innlandet delivered weak results in the quarter.

Betonmast has a separate property portfolio with one property project with a total of 15 units under production. SPG Bostader Linden and Häggen in Strömstad were completed in the quarter. Betonmast Eiendom reported a weak result for the quarter. For further information on the projects, see Note 7.

One new contract was reported to the stock exchange in the 3rd quarter. Betonmast Røsand has entered into an agreement for the construction of a new primary school in Kristiansund. The contract is a turnkey contract valued at approximately NOK 200 million excluding VAT.

Betonmast had an order intake of NOK 1,047 million (377 million) in the 3rd quarter. As at 30 September 2023, Betonmast's order backlog was NOK 4,887 million (5,370 million).

After the end of the quarter, Betonmast Trøndelag signed a contract with Sit (the Student Welfare Organisation in Gjøvik, Ålesund and Trondheim) to build 724 student housing units in Trondheim. The contract is a turnkey contract valued at approximately NOK 930 million excluding VAT.

PROPERTY

EARNINGS BEFORE TAX (NOK million)

ENTERED INTO SALES CONTRACTS (TOTAL NUMBER)

TURNOVER UNITS IN PRODUCTION (NOK million)

KEY FIGURES

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
Operating and other revenue	4	7	20	18	30
Earnings before financial items and tax (EBIT)	-4	-5	-9	54	75
Earnings before tax (EBT)	-	-3	-	59	82
Capital employed	792	548	792	548	654

NUMBER OF EMPLOYEES

AF Gruppen 6,176

SALES RATIO PROJECTS IN PROGRESS (%) PROPERTY CONSISTS OF

• AF Eiendom
• LAB Eiendom

AF develops, designs and carries out residential and commercial projects in Norway, and activities take place in geographical areas where AF has its own production capacity. AF works closely with other players in the industry, and the development projects are mainly organised as associated companies and joint ventures.

Property delivered earnings before tax of NOK 0 million (-3 million) in the 3rd quarter. Year to date earnings before tax were NOK 0 million (NOK 59 million). Property consists of two operating units, AF Eiendom and LAB Eiendom, with local presence in Greater Oslo and the Bergen region respectively.

Uncertain market sentiment and rising interest rates have a negative impact on housing sales, and have contributed to low sales figures in the quarter. Sales contracts for 5 (89) homes were signed in the quarter, of which AF's share is 2 (34). So far this year, sales contracts have been signed for 41 (210) homes, of which AF's share is 19 (88).

There were six residential property projects in the production stage at the end of the quarter. A total of 920 units are in production, of which AF's share is 422:

• Fyrstikkbakken in Oslo (159 units in production, of which 139 sales contracts have been signed).

• Skårersletta MIDT in Lørenskog (295 units in production, of which 193 sales contracts have been signed).

• Bekkestua Have in Bærum (232 units in production, of which 227 sales contracts have been signed).

• Rolvsrud Arena in Lørenskog (229 units in production, of which 143 sales contracts have been signed).

• Skiparviklia 3D in Bergen (4 units in production, of which 4 sales contracts have been signed).

• Baneveien 16 in Bergen (1 unit in production, 1 sales contract has been signed).

This gives a sales ratio of 77% for commenced projects. There were a total of 6 (1) completed unsold units at the end of the quarter, of which AF's share was 2 (0). For more information on projects for own account, see Note 7.

AF also has a significant development portfolio in Norway which is estimated at 1,629 (1,522) residential units. AF's share of this is 813 (760) residential units.

AF has a commercial building in the production stage at Baneveien 16 in Bergen, which also includes one residential unit. AF has an ownership stake in commercial property under construction with a total RFA of 73,107 (62,342) square metres, of which AF's share is an RFA of 36,374 (30,949) square metres.

ENERGY AND ENVIRONMENT

REVENUE (NOK million) OPERATING PROFIT (NOK million) OPERATING MARGIN (%)

KEY FIGURES

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
Operating and other revenue	381	261	994	753	1,062
Earnings before financial items and tax (EBIT)	21	21	51	51	84
Earnings before tax (EBT)	22	21	56	50	82
Operating profit margin	5.6 %	8.2 %	5.1 %	6.8 %	7.9 %
Profit margin	5.9 %	7.9 %	5.6 %	6.7 %	7.7 %

NUMBER OF EMPLOYEES

AF Gruppen 6,176

ORDER BACKLOG (NOK million)

ENERGY AND ENVIRONMENT CONSIST OF

• AF Energi Enaktiva
• AF Energija Baltic
• AF Decom
• Rimol Miljøpark
• Nes Miljøpark
• Jølsen Miljøpark • Mepex

AF offers energy-efficient solutions for buildings and industry and is a leading player in environmental clean-up, demolition and recycling. Contaminated materials are sorted, decontaminated and recycled at AF's environmental centres Rimol, Jølsen and Nes.

Energy and Environment increased the level of activity in the 3rd quarter by 46% compared with the same quarter last year, and overall achieved a good result. Revenues for the 3rd quarter were NOK 381 million (261 million). Earnings before tax were NOK 22 million (21 million). Year to date revenues totalled NOK 994 million (753 million) and earnings before tax were NOK 56 million (50 million).

AF Energi reported significant revenue growth during the quarter. A high level of activity and good operational performance in the projects contributed to a good result for the 3rd quarter.

AF Decom had a higher level of activity in the 3rd quarter compared with the same quarter last year, and delivered a good result. AF's demolition operations demolish and sort different materials for recycling. AF Decom demolished and facilitated the recycling of approximately 1,430 (2,571) tonnes of metal in the 3rd quarter, and 8,325 (15,688) tonnes of metal so far this year. The steel industry accounts for about 7% of the world's total CO² emissions. Reusing steel results in 70 per cent lower CO² emissions than orebased production. This corresponds to a reduction in emissions of 1 kg CO² for each kilo of steel recycled. This means that AF Decom's demolition operations have helped to reduce alternative CO² emissions by 8,325 tonnes thus far in 2023.

The foundation for our environmental activities is that waste can to a large extent be reused, and thus be a valuable resource in a growing circular economy. AF's environmental centres receive contaminated material and are working to reuse as much as possible instead of it going to landfill. The environmental centres delivered good results in the quarter. AF's environmental centres have recycled a total of 82,513 (98,559) tonnes of material in the 3rd quarter, and a total of 207,186 (245,605) tonnes of material so far this year. The recycling rate realised for contaminated material is 78% so far this year.

Energy and environment had an order intake of NOK 300 million (262 million) in the 3rd quarter. The order backlog for Energy and Environment stood at NOK 1,403 million (688 million) as at 30 September 2023.

SWEDEN

REVENUE (NOK million) OPERATING PROFIT (NOK million) OPERATING MARGIN (%)

KEY FIGURES

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
Operating and other revenue	1,567	1,759	5,644	5,303	7,445
Earnings before financial items and tax (EBIT)	-	-35	-135	86	130
Earnings before tax (EBT)	-4	-36	-141	82	127
Operating profit margin	-0.0 %	-2.0 %	-2.4 %	1.6 %	1.7 %
Profit margin	-0.2 %	-2.0 %	-2.5 %	1.6 %	1.7 %

NUMBER OF EMPLOYEES

ORDER BACKLOG (NOK million) SWEDEN CONSISTS OF

• Kanonaden
• AF Prefab i Mälardalen
• AF Bygg Syd
• AF Projektutveckling
• AF Härnösand Byggreturer
• HMB
• AF Bygg Väst
• AF Bygg Öst
• AF Anläggning Väst

The Sweden business area comprises AF's Swedish operations in civil engineering, construction, property and demolition. The geographic area of operation encompasses Gothenburg and Southern Sweden, as well as Stockholm and Mälardalen.

Sweden reported revenues of NOK 1,567 million (1,759 million) for the 3rd quarter. Earnings before tax were NOK - 4 million (-36 million). Year to date revenues totalled NOK 5,644 million (5,303 million) and earnings before tax were NOK -141 million (82 million).

The Sweden business area had a weak, negative profit before tax this quarter. There is a wide range in the units' performance. AF Prefab in Mälardalen and AF Härnösand Byggreturer, reported very good results in the quarter. Kanonaden and HMB delivered good results this quarter. AF Bygg Syd delivered results that were somewhat below expectations. AF Bygg Väst, AF Bygg Öst, AF Öresund and AF Anläggning Väst had weak results this quarter.

Organisational and structural changes have been made in the 3rd quarter. AF Bygg Stockholm is now part of AF Bygg Öst and AF Öresund is organisationally a part of AF Bygg Syd.

AF Projektutveckling, AF's property business in Sweden, has one residential project with a total of 83 units under production. For further information on the residential projects, see Note 7. The unit has a building site inventory (residential units under development) that is estimated at 1,170 (990) residential units. AF's share of this is 620 (495) residential units.

Two contracts were reported to the stock exchange in the 3rd quarter. HMB has signed an agreement to build 60 cooperative apartments in Täby municipality for OBOS Nya Hem. The turnkey contract is valued at SEK 137 million excluding VAT. AF Bygg Syd will develop and modernise the Busör wastewater treatment plant in Halmstad municipality; the turnkey contract has a value of SEK 134 million excluding VAT.

Sweden had an order intake of NOK 511 million (1,351 million) in the 3rd quarter.The order backlog for Sweden stood at NOK 5,156 million (8,071 million) as at 30 September 2023.

OFFSHORE

REVENUE (NOK million) OPERATING PROFIT (NOK million) OPERATING MARGIN (%)

KEY FIGURES

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
Operating and other revenue	208	380	795	870	1,238
Earnings before financial items and tax (EBIT)	-119	51	-84	105	164
Earnings before tax (EBT)	-126	46	-98	102	160
Operating profit margin	-56.9 %	13.4 %	-10.6 %	12.0 %	13.2 %
Profit margin	-60.2 %	12.2 %	-12.3 %	11.7 %	12.9 %

ORDER BACKLOG (NOK million) OFFSHORE CONSISTS OF

• AF Offshore Decom

• Aeron

AF has varied activities aimed at the maritime business and the oil and gas sector. Our services range from new construction and modification of climate control systems (HVAC) for the offshore and marine markets, to the removal and recycling of offshore installations. AF has a state-of-the art facility for environmental clean-up at Vats.

Offshore had a negative result this quarter. Revenues in the 3rd quarter were NOK 208 million (380 million). Earnings before tax were NOK -126 million (46 million). Revenues totalled NOK 795 million (870 million) and earnings before tax were NOK -98 million (102 million) year to date.

AF Offshore Decom had a negative result this quarter, entirely related to a downward adjustment of the project estimate on a single project.

AF Offshore Decom demolishes and facilitates the recycling of offshore installations. AF Offshore Decom has sorted 96% of the structures for recycling as of the 3rd quarter, where metal is the main component. AF Offshore Decom demolished and facilitated the recycling of approximately 5,787 (6,131) tonnes of steel in the 3rd quarter, and 23,894 (34,445) tonnes of steel so far this year, corresponding to a reduction of alternative CO² emissions of 23,894 tonnes compared to ore-based production.

Aeron maintained a high level of activity, but delivered profitability somewhat below expectations for the quarter.

Offshore had an order intake of NOK 125 million (873 million) in the 3rd quarter. The order backlog for Offshore was NOK 1,362 million (1,927 million) as at 30 September 2023.

Tunnel interior at E4 Förbifart Stockholm. Foto: AF Gruppe n

20 Vannkunsten, Bjørv

FINANCIAL INFORMATION

AF Gruppen shall have robust financing with respect to operational and market-related fluctuations. The Group's goal for return on invested capital is 20%, and its financial position shall underpin the growth strategy and provide an adequate dividend capacity.

In the 3rd quarter, net operating cash flow was NOK 494 million (272 million) and net cash flow from investments was NOK -104 million (-25 million). Cash flow before capital transactions and financing was NOK 389 million (247 million) for the 3rd quarter. Year to date cash flow from operating activities was NOK 697 million (1,498 million), and cash flow from net investments NOK -504 million (144 million). Cash flow before financing activities was NOK 192 million (1,642 million) year to date.

At the end of the 3rd quarter, AF Gruppen had cash and cash equivalents of NOK 526 million (1,036 million). Net interest-bearing debt (receivables) as at 30 September 2023 was NOK 1,381 million (-254 million).

AF Gruppen entered into an agreement for new financing facilities with Handelsbanken during the 3rd quarter. The LIST OF SHAREHOLDERS AS AT 30 SEPTEMBER 2023

new agreement is a sustainability-linked revolving longterm credit facility (3+1+1 year maturity) of NOK 1,500 million, effective from 29 September 2023. The agreement replaces Handelsbanken's existing financing framework of NOK 1,000 million. AF Gruppen's total financing facilities amount to NOK 3,500 million. The financing facilities also consist of a multi-currency overdraft facility (rolling 1-year term) of NOK 2,000 million in DNB.

Available liquidity at 30 September 2023, including overdraft facilities with Handelsbanken and DNB, is NOK 2,847 million.

Total assets were NOK 15,009 million (14,695 million) as at 30 September 2023. The Group's equity totalled NOK 2,973 million (3,286 million) as at 30 September 2023. This corresponds to an equity ratio of 19.8% (22.4%).

THE SHARE

AF Gruppen's shares are listed on the Oslo Børs OB Match List and trade under the ticker AFG. The share is included in the Oslo Børs All Share Index (OSEAX), Benchmark Index

Name	No. Shares	% share
ØMF Holding AS	17,922,233	16.6
OBOS BBL	17,459,483	16.2
Constructio AS	15,288,012	14.2
Folketrygdfondet	9,070,140	8.4
LJM AS	2,515,217	2.3
Artel Kapital AS	2,508,267	2.3
VITO Kongsvinger AS	1,911,676	1.8
Arne Skogheim AS	1,753,870	1.6
Janiko AS	1,370,186	1.3
Moger Invest AS	1,242,609	1.2
Ten largest shareholders	71,041,693	66.0
Total other shareholders	36,526,557	33.9
Own shares	133,750	0.1
Total number of shares	107,702,000	100.0

LTI-1 RATE DEVELOPMENT LTI-1 RATE

(OSEBX), Mutual Fund Index (OSEFX) and the Industrials Index (OINP).

As of 30 September 2023, the AF share had a closing price of NOK 124.60. This corresponds to a return of -8.8% year to date. The Oslo Børs Benchmark Index showed a return of 7.5% for the same period.

In October, a total of 920 employees subscribed for a total of 1,000,000 shares in AF Gruppen's share programme. The shares were subscribed for at a price of NOK 97.40 per share, which corresponds to a discount of

20% in relation to the average market price during the subscription period. The Board of Directors decided, based on authorisation from the general meeting, to sell 170,000 treasury shares and issue 830,000 new shares. This was carried out on 12 October 2023. Once the sale has been completed, the company will not own any treasury shares.

After completion of the issue, the number of shares in AF Gruppen is 108,532,000, which corresponds to share capital of NOK 5,426,600.

In order to maintain strategic flexibility, the Board has decided not to distribute dividends for the second half of 2023. Dividend for the second half of 2022 was NOK 4,00 per share.

SAFETY AND HEALTH

Health, safety and environment (HSE) has high priority in AF Gruppen and is an integral part of the management at all levels. AF has a structured and uniform HSE system that encompasses all projects. The working environment should be safe for everyone, including those who are employed by our subcontractors. AF´s subcontractors are therefore included in the injury statistics.

The LTI (lost-time injury) rate is an important measurement parameter for safety work at AF. The LTI-1 rate is defined as the number of serious personal injuries and absence

injuries per million man-hours. A total of 0 (5) injuries resulting in absence were registered in the 3rd quarter. This gives an LTI-1 rate of 0.0 (0.9) for the 3rd quarter. Year to date the LTI-1 rate is 0.8 (1.2).

Systematic and long-term work is being carried out to reduce the LTI-1 rate. Significant resources are being invested to further improve our HSE efforts in order to be able to achieve our goal of an LTI-1 rate of zero. Key to this work is AF's fundamental understanding and acceptance that all injuries have a cause and can therefore be avoided. Identifying risk and risk analysis are key parts of our preventive activities. Based on a given risk scenario, physical and organisational barriers are established to reduce the risk of personal injury.

Learning from own mistakes is of critical importance. AF has systematised this through reporting and follow up of undesired incidents, as well as investigating the most serious incidents. The number of reports has increased steadily in recent years. We see a clear correlation between the increased reporting of undesired incidents and decrease in injuries.

The registration of sick leave forms the basis for the measurement of health work at AF. In the 3rd quarter, sick leave rate was 3.9% (4.0%), and 4.1% (4.5%) year to date. Our target is a healthy sick leave level, without absence due to occupational illnesses or injuries. Systematic efforts are being made, which consist of ongoing risk analysis of exposure that is harmful to health, the establishment of physical and organisational barriers, and close follow-up of employees on sick leave.

AF strives to avoid environmental damage and minimise undesirable effects on the environment. Environmental work is an integral part of HSE work, and the main tools used are therefore the same that are used otherwise in connection with HSE work.

23

CLIMATE AND ENVIRONMENT

As part of the strategy for 2021-2024, AF has set a goal of halving relative greenhouse gas emissions and waste volumes that cannot be reused or recycled by 2030. The most important factor in reducing our own climate footprint is logistics planning to, among other things, reduce the transport of masses. In addition, the use of electric machinery, a modern machinery and car fleet and sorting of waste will help to further reduce our own greenhouse gas emissions.

The source separation rate indicates how much of the waste from AF's operations is separated for the purpose of facilitating recycling. The government requirement for source separation is 70%. In the 3rd quarter, the source separation rate for construction was 80% (86%), for renovation it was 84% (91%) and for demolition it was 95% (97%). Year to date the recycling result for building was 84% (88 %), the result for renovation was 87% (89%) and the result for demolition was 96% (95%). These results are considered to be very good. A total of 46,123 tonnes (70,056 tonnes) of waste were separated at source in the 3rd quarter, and a total of 218,291 tonnes (213,963 tonnes) of waste were separated at source year to date.

AF wants to use the expertise we have to create further indirect savings on greenhouse gas emissions. AF's environmental centres offers services where materials that previously would have ended up in landfill sites now can be recovered and have their useful life extended. The environmental centres have recycled a total of 207,186 tonnes (245,605 tonnes) of materials year to date.

The Offshore and Energy and Environment business areas are based on services that solve environmental challenges in the area of demolition and recycling. All our demolition activities, both onshore and offshore, are based on a circular economy, where over 95% of all material from

demolition is sorted for recycling. Metals, especially steel, are one of the main components of that which is recycled. The steel industry accounts for about 7% of the world's total CO² emissions. Reusing steel results in 70% lower CO²

emissions than ore-based production. This corresponds to a reduction in emissions of 1 kg CO² for each kilo of steel recycled. AF Offshore Decom and AF Decom demolished and facilitated the recycling of 7,217 tonnes (8,702 tonnes) of metal in the 3rd quarter, and 32,219 tonnes (50,133

tonnes) of metal year to date. In total, this represents a reduction of alternative CO² emissions by around 32,219

tonnes (50,133 tonnes) year to date.

AF reports climate accounts based on the Greenhouse Gas Protocol (GHG), where our own direct and indirect emissions (scope 1 and 2), as well as other selected indirect emissions (scope 3) are measured in tonnes of CO² equivalents. The other selected indirect emissions included in the climate accounts are emissions from waste generated, business travel and commuting. Waste from demolition operations is not included in the emission figures in scope 3. The carbon footprint is defined as emissions of greenhouse gases in tons of CO2equivalents per NOK million revenues, and at 30 September 2023, the carbon footprint for scope 1 and 2 was 1.1 (1.0). AF has set a target of halving greenhouse gas emissions for each service type relative to revenue by 2030. The basis year of the reduction target of scope 1 and 2 emissions is 2020, and the carbon footprint for that year was 1,6.

Climate accounts (tonnes CO2e 1 )	YTD 3Q 23	YTD 3Q 22
Scope 1: Direct emissions	24,111	20,880
Scope 2: Indirect emissions, energy	974	900
Greenhouse gas emissions	25,084	21,780
Carbon footprint2 scope 1 and 2	1.1	1.0
Scope 3: Other indirect emissions3	9,217	4,651
Greenhouse gas emissions	34,301	26,431

1) Greenhouse gas emissions with global warming potential equivalent to CO²

2) Tonnes CO2e emissions per NOK million in revenue

3) Other selected indirect emissions

SICK LEAVE DEVELOPMENT SOURCE SEPARATION RATE

There are large differences in greenhouse gas emissions relative to revenue in the various types of services. The use of diesel in construction machinery is the largest direct source of emission. Both civil engineering and demolition activities require heavy construction machinery in order to carry out work and move large amounts of materials in projects. The use of heavy construction machinery is limited to groundwork and project logistics in our construction projects. It is, therefore, important for AF to analyse and reduce greenhouse gas emissions within each type of service and not reduce activity in civil engineering and demolition in relation to construction. The service types we measure in this context are civil engineering, construction and demolition services. Services that are not included in these categories are energy efficiency services, environmental centres, property activities and general services.

Civil engineering services

Emissions by service type	YTD 3Q 23	YTD 3Q 22
Scope 1: Direct emissions	18,064	16,997
Scope 2: Indirect emissions, energy	323	189
CO2e emissions scope 1 og 2 (tonn CO2e)1	18,387	17,186
Carbon footprint2 scope 1 and 2	2.7	2.7

Construction services

Emissions by service type	YTD 3Q 23	YTD 3Q 22
Scope 1: Direct emissions	1,913	1,994
Scope 2: Indirect emissions, energy	543	549
CO2e emissions scope 1 og 2 (tonn CO2e)1	2,456	2,543
Carbon footprint2 scope 1 and 2	0.2	0.2

Demolition services

Emissions by service type	YTD 3Q 23	YTD 3Q 22
Scope 1: Direct emissions	3,510	4,444
Scope 2: Indirect emissions, energy	70	71
CO2e emissions scope 1 og 2 (tonn CO2e)1	3,579	4,515
Carbon footprint2 scope 1 and 2	3.5	4.2

1) Greenhouse gas emissions with global warming potential equivalent to CO²

2) Tonnes CO2e emissions per NOK million in revenue

ORGANISATION

AF Gruppen is working continuously to build a uniform corporate culture. Motivated employees and a solid organisation are an important foundation for creating value. It is prioritized in AF to develop organisations with a good composition of technical expertise and management at all levels. The resources are organised close to production, with project teams where the managers have a high degree of influence.

AF aims to be a company to which talented individuals apply, whether they are women or men. A long-term goal is to increase the total proportion of women to 20% and the proportion amongst officials to 40%. This is an ambitious goal. In the 3rd quarter the share of women is 9.4 % (9.2 %) in total and 19.4 % (18.9 %) amongst officials.

In AF, everyone is of equal value, and the company shall have an inclusive and safe working environment with zero tolerance for discrimination and a culture where violations have consequences. AF has been working on the diversity project "The best people" since 2018, and as part of the project, the campaign "Of equal value" has been launched. The campaign has been very well received in all projects in both our Swedish and Norwegian business units. AF's work on diversity, including through the Diversitas network and #HunSpanderer, has contributed to an increased focus on and change of attitudes related to unconscious discrimination.

AF maintains a high focus on innovation and digitalisation within all our business areas. We are working in a structured manner on how new technology can contribute to increased productivity and minimise risk in our projects, a safer working environment for our employees, and not to mention create greater value for our customers. In addition, we are continuously seeking new business models on the border of or outside of our current core areas. AF Gruppen has its own corporate function for innovation and digitalisation, in addition to a joint venture fund with OBOS for venture capital investments in the building and construction industry (Construct Venture).

AF invests a lot of time and resources in development of employees through the AF Academy. More than 80% of the current managers have been recruited internally. Our employees are good ambassadors in the recruitment of new colleagues.

At the end of the 3rd quarter AF Gruppen had a total of 6,176 (6,025) employees. Of these employees 5,005 (4,920) were employed in Norway, 1,119 (1,072) in Sweden, 23 (19) in Lithuania, 24 (14) in Germany and 5 (0) in Great Britain.

RISK AND RISK MANAGEMENT

AF Gruppen is exposed to risk of both non-financial and financial nature. Risk reflects uncertainty or variations in

the result. Non-financial risk encompasses business risk, reputational risk, and operational risk. Business risk arises as a result of external circumstances. These circumstances may, for example, be related to how competitors act, climate changes, regulatory changes or other political risk. The importance of business risk has been highlighted by the effect of Covid-19 pandemic and Russia´s invasion of Ukranie. Reputational risk is the risk of loss of reputation. AF's credibility is based on trust and we have an uncompromising attitude towards ethics and a strong corporate culture with zero tolerance for, among other things, corruption and bribery. Our employees represent AF Gruppen in all business context, and it is essential that they identify with and follow AF's Code of Conduct. Suppliers and subcontractors are also obliged to follow the Code of Conduct through AF's supplier declaration. Operational risk is the risk of losses due to deficiencies or errors in processes and systems, human errors or external events. AF Gruppen wants to undertake operational risk that the business units can influence and control. AF has developed risk management processes that are well adapted to our operations. Standardised, actionoriented risk management processes ensure comprehensive and coherent risk management in all parts of the organisation. AF seeks to limit exposure to risk that cannot be influenced. A risk review is conducted for all projects before a tender is even submitted. Analysis of risk during the tendering phase enables the correct pricing and management of risk in the project. The same project organisations conduct detailed risk reviews every quarter. The Corporate Management Team participates in risk reviews of all projects with a contract value in excess of NOK 100 million. In addition, 38 quarterly reviews in the business units were completed during the 3rd quarter, where the Corporate Management Team also participated.

Financial risk encompasses market risk, credit risk and liquidity risk. Market risk includes commodity price risk, foreign exchange risk and interest rate risk. AF is exposed to foreign exchange risk, including indirectly via suppliers who purchase from abroad, as well as the purchase and leasing of machinery manufactured abroad. As a major demolition and recycling operator, AF Gruppen is also exposed to fluctuations in steel prices. AF aims to have low exposure to risks that cannot be influenced, and use hedging instruments to mitigate the risk associated with foreign exchange rates and steel prices. AF has credit risk in relation to customers, suppliers and partners. In addition to the parent company and bank guarantees, the use of credit rating tools contributes to reducing risk. The liquidity risk is considered low. AF Gruppen's available liquidity, including credit facilities of NOK 3,500 million, stood at NOK 2,847 million as at 30 September 2023.

MARKET OUTLOOK

Geopolitical unrest, high inflation and increasing interest rates continue to dominate the macro picture in Norway and internationally. At the same time, the krone exchange rate has remained weak against other major currencies this quarter. Unpredictability around price increases, interest rates, energy prices and government allocations are among the factors that will be decisive factors for AF Gruppen in the future. There is considerable uncertainty associated with future market prospects.

The civil engineering market in Norway is less sensitive to cyclical fluctuations, as public sector demand is the strongest driver behind investments in civil engineering. In the national budget for 2024, the government has proposed an allocation of NOK 89.6 billion for purposes under the National Transport Plan (NTP), an actual increase of NOK 1.1 billion from the final budget for 2023. The Government gives priority to rational progress in commenced projects and measures.

The Government's national budget for 2024 contains several aspects that could impact our activities in Norway, both in terms of activity level and our direct costs. Lower predictability linked to public sector investments and indications of reduced public sector development and budget allocations for road and railway development are all creating added uncertainty during a time of challenging framework conditions.

Prognosesenteret expects the total civil engineering market to grow by 0.8% in 2023, 3.5% in 2024 and 2.2% in 2025. While growth will mainly come from operations and maintenance in 2023, investments are expected to drive growth in 2024 and 2025. The road development segment (investments and maintenance in total) is expected to grow for the duration of the forecast period. The forecasts for the civil engineering market indicate a good basis for further growth for AF's civil engineering activities.

For the construction market in Norway as a whole, Prognosesenteret has revised down its production value estimates for 2023 and 2024 to -4.2% and -1.8% respectively, and revised upwards to 9.0 % in 2025. Many approved start permits that have not yet begun are

expected to materialise closer to 2025, and are thus expected to increase production value. There is expected to be a nationwide reduction in new builds and rehabilitation, renovation and extensions (ROT) in 2023, while the market for non-residential buildings is expected to grow due to the continued high level of warehouse construction. Prognosesenteret estimates the number of commenced residential units at 21,000 in 2023, corresponding to a 30% decline since 2022. The number of commenced residential units is expected to pick up in 2024 and 2025, and is estimated at 26,000 and 31,000, respectively. Prognosesenteret's estimates for commenced residential units are based on the number of start permits measured. The current market sentiment entails increased uncertainty in the estimates for commenced residential units.

Figures from Eiendom Norge for the 3rd quarter show a decline in housing prices in Norway. On a national basis, residential property prices have risen by 3.7% so far this year. At the interest rate meeting in November 2023, Norges Bank decided to keep the key rate unchanged at 4.25%, but signalled that it may be raised in December.

The general increase in prices for materials, energy and other goods is a significant element of uncertainty for AF Gruppen's activities going forward. According to Statistics Norway's construction cost index for "Housing in total", prices increased by 3.4% in September compared to the same period last year, of which labour costs have increased by 4.7% and materials by 3.7%. Prices for concrete and concrete elements remain at a relatively high level after a significant increase earlier in in the year. The prices of reinforcing steel, structuring steel and wood products have fallen for several consecutive quarters, but remain significantly higher than prior to the Covid-19 pandemic.

The Norwegian authorities have set ambitious targets for reducing energy use up to 2030, and high electricity prices make investments in energy-efficient measures very attractive. According to the Norwegian Building Industry Association, the potential for energy efficiency is 10 TWh in Norway, which will provide good market opportunities for AF's energy business.

The Energy and Environment business area encompasses AF's energy services related to land-based operations, as well as services related to demolition and recycling onshore in Norway. The activities of the business area are closely related to the construction market, where the level of new building starts will affect the market for demolition and recycling services. Demand for energy and other environmentally-related services is growing. Cleaned material from AF's environmental centres is finding an increasing number of areas of application, such as an additive to spray concrete and as gritting sand during the winter season.

AF's offshore climate control business (HVAC) as well as maintenance and modifications, also has a better market outlook. Electrification of the marine sector and installations on the Norwegian shelf represents market opportunities. The carbon tax is NOK 952 per tonne in 2023, and the "Climate Plan for 2021-2030" white paper has signalled that it will be increased to NOK 2,000/tonne in 2030. This can help accelerate the rate of electrification. Offshore services for the removal and recycling of decommissioned oil platforms solve a significant societal challenge. The aim is to recycle as much of the materials from the decommissioned offshore platforms as possible. The recycling of steel from decommissioned oil platforms is a significant contribution to reducing greenhouse gas emissions compared with ordinary steel production. The growth of offshore wind expansion will create pressure on available vessels and port facilities. This may lead to higher prices for offshore decommissioning. Increased investment in offshore wind can also provide new market opportunities for AF's business.

Byggföretagen reports that building investments in Sweden (excluding civil engineering investments) is estimated to SEK 471.7 billion in 2023, and is expected to decrease to SEK 437.1 billion (-7.3%) in 2024, primarily in connection with the "homes" segment. The Swedish residential property market had a moderate price development this quarter. At the end of September, Svensk Mäklarstatistik reported a 0.7% price increase for apartments and an 6.3% decrease for detached houses compared with the same period last year. In September, the Swedish Riksbank decided to raise its key rate by 0.25 percentage points to 4.0%, indicating a further rise in interest rates.

Oslo, 09 November 2023

Board of Directors of AF Gruppen ASA

For more detailed information, please contact: Amund Tøftum, CEO amund.toftum@afgruppen.no | +47 920 26 712 Anny Øen, CFO anny.oen@afgruppen.no | +47 982 23 116 Internet: www.afgruppen.no

Financial information

Energy optimization in Bergen. Photo: AF Gruppen

27

3RD QUARTER 2023

CONDENSED CONSOLIDATED STATEMENT OF INCOME

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
Operating and other revenue	6,907	7,537	22,152	22,638	31,205
Subcontractors	-3,428	-3,841	-11,326	-11,812	-16,554
Cost of materials	-1,259	-1,452	-4,131	-4,284	-5,346
Payroll costs	-1,433	-1,344	-4,257	-3,939	-5,487
Operating expenses ex. depreciation and impairment	-504	-517	-1,636	-1,445	-2,072
Net gains (losses) and profit (loss) from associates	-13	21	51	149	190
EBITDA	270	404	854	1,306	1,937
Depreciation and impairment of tangible fixed assets	-57	-53	-163	-157	-209
Depreciation and impairment of right of use assets	-84	-79	-243	-241	-317
Depreciation and impairment of intangible assets	-	-	-1	-1	-2
Earnings before financial items and tax (EBIT)	128	271	447	907	1,409
Net financial items	-25	-8	-39	-9	-10
Earnings before tax (EBT)	103	263	408	898	1,400
Income tax expense	-25	-56	-93	-175	-248
Net income for the period	78	207	315	723	1,151
Attributable to:
Shareholders in the Parent Company	46	155	228	590	958
Non-controlling interests	33	51	87	133	193
Net income for the period	78	207	315	723	1,151
Earnings per share (NOK)	0.43	1.46	2.12	5.53	8.96
Diluted earnings per share (NOK)	0.43	1.46	2.12	5.53	8.96
Key figures	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
EBITDA margin	3.9 %	5.4 %	3.9 %	5.8 %	6.2 %
Operating profit margin	1.9 %	3.6 %	2.0 %	4.0 %	4.5 %
Profit margin	1.5 %	3.5 %	1.8 %	4.0 %	4.5 %
Return on capital employed (ROaCE)1)	-	-	19.6 %	34.8 %	31.6 %
Return on equity	-	-	23.2 %	35.5 %	34.0 %
Equity ratio	19.8 %	22.4 %	19.8 %	22.4 %	24.2 %
Net interest-bearing debt (receivables) 2)	1,381	-254	1,381	-254	329
Capital employed 3)	5,224	4,385	5,224	4,385	4,900
Order intake	4,078	5,249	24,251	23,707	32,324
Order backlog	41,864	39,716	41,864	39,716	39,765

1) Return on capital employed (ROaCE) = (Earnings before tax + interest expense) / average capital employed

2) Net interest-bearing debt (receivables) = Cash and cash equivalents + interest-bearing receivables - interest-bearing debt

3) Capital employed = Equity + interest-bearing debt

STATEMENT OF COMPREHENSIVE INCOME

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
Net income for the period	78	207	315	723	1,151
Net actuarial gains and losses	-	-	-	-	2
Currency translation differences non-controlling int.	-1	2	3	-2	-6
Items that will not be reclassified to income statement in subsequent periods	-1	2	3	-2	-5
Net cash flow hedges	20	-22	-10	-13	4
Currency translation differences shareholders of the parent	-12	7	43	-2	-35
Items that may be reclassified to income statement in subsequent periods	7	-14	33	-14	-31
Other comprehensive income for the period	6	-13	36	-16	-36
Total comprehensive income for the period	84	194	351	707	1,116
Attributable to:
- Shareholders of the parent	53	141	261	576	929
- Non-controlling interests	31	54	90	131	187
Total comprehensive income for the period	84	194	351	707	1,116

EQUITY

NOK million	Paid-in capital	Translation differences	Actuarial pension gain/ (loss)	Cash flow hedge	Retained earnings	Attributable to share holders	Non controlling interests	Total equity
As at 31 December 2021	506	16	-20	-22	2,174	2,654	918	3,572
Comprehensive income	-	-2	-	-13	590	576	131	707
Capital increase	40	-	-	-	-	40	-	40
Purchase of treasury shares	-	-	-	-	-66	-66	-	-66
Sale of treasury shares	-	-	-	-	10	10	-	10
Dividend paid	-	-	-	-	-695	-695	-242	-937
Share-based remuneration	23	-	-	-	-	23	2	25
Put options for non-controlling interests	-	-	-	-	-18	-18	-	-18
Addition from acquisition of subsidiaries	-	-	-	-	-	-	14	14
Transactions with non-controlling interests	-	-	-	-	-97	-97	35	-62
As at 30 September 2022	569	14	-20	-35	1,899	2,428	858	3,286
As at 31 December 2022	682	-19	-19	-18	1,950	2,575	918	3,494
Comprehensive income	-	43	-	-10	228	261	90	351
Capital increase	-	-	-	-	-	-	2	2
Purchase of treasury shares	-	-	-	-	-29	-29	-	-29
Sale of treasury shares	-	-	-	-	11	11	-	11
Dividend paid	-	-	-	-	-700	-700	-141	-840
Share-based remuneration	22	-	-	-	-	22	2	24
Put options for non-controlling interests	-	-	-	-	-7	-7	-3	-9
Addition from acquisition of subsidiaries	-	-	-	-	-	-	10	10
Transactions with non-controlling interests	-	-	-	-	-15	-15	-25	-40
As at 30 September 2023	704	24	-19	-27	1,438	2,119	854	2,973

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

NOK million	30/09/23	30/09/22	31/12/22
Tangible fixed assets	1,741	1,452	1,462
Right of use assets	947	855	859
Intangible assets	4,522	4,561	4,461
Investment in associates and joint ventures	540	469	490
Deferred tax asset	163	91	76
Interest-bearing receivables	291	264	268
Pension plan and other financial assets	38	13	13
Total non-current assets	8,242	7,705	7,630
Inventories	369	274	301
Projects for own account	192	44	158
Trade receivables and contract assets	5,625	5,583	5,557
Interest-bearing receivables	54	54	44
Derivatives	1	-	-
Cash and cash equivalents	526	1,036	765
Total current assets	6,767	6,990	6,827
Total assets	15,009	14,695	14,457
Equity attributable to shareholders of the parent	2,119	2,428	2,575
Non-controlling interests	854	858	918
Total equity	2,973	3,286	3,494
Interest-bearing debt	79	75	75
Interest-bearing debt - lease liability	672	658	607
Retirement benefit obligations	3	5	3
Provisions	117	190	117
Deferred tax	439	622	445
Derivatives	27	12	2
Total non-current liabilities	1,337	1,563	1,250
Interest-bearing debt	1,185	106	433
Interest-bearing debt - lease liability	315	260	290
Trade payables and other short-term debt	8,080	8,461	7,969
Derivatives	4	40	20
Provisions	674	703	585
Tax payable	439	277	416
Total current liabilities	10,698	9,847	9,713
Total liabilities	12,036	11,409	10,963
Total equity and liabilities	15,009	14,695	14,457

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
Earnings before financial items and tax (EBIT)	128	271	447	907	1,409
Depreciation, amortisation and impairment	142	133	408	399	528
Change in net working capital	240	-77	62	532	-43
Income taxes paid	-41	-42	-193	-217	-299
Net gains (losses) and profit (loss) from associates	13	-21	-51	-149	-190
Other adjustments	11	9	24	25	55
Cash flow from operating activities	494	272	697	1,498	1,460
Net investments	-104	-25	-504	144	67
Cash flow before financing activities	389	247	192	1,642	1,527
Share issue	-	-	-	-	85
Dividends paid to shareholders in the Parent Company	-	-	-700	-695	-1,125
Dividends paid to non-controlling interests	-1	-1	-140	-242	-240
Transactions with non-controlling interests	-10	-19	-27	-60	-135
Sale (purchase) of treasury shares	-11	-	-18	-56	-9
Borrowings (repayment) of debt	-303	-276	485	-215	29
Interest and other financial expenses paid	-27	-4	-78	-27	-41
Cash flow from financing activities	-351	-300	-477	-1,294	-1,437
Change in cash and cash equivalents with cash effect	38	-53	-285	347	90
Net cash and cash equivalents at the beginning of period	494	1,086	765	680	680
Change in cash and cash equivalents without cash effect	-7	3	45	8	-4
Net cash and cash equivalents at the end of period	526	1,036	526	1,036	765

BUSINESS AREAS

AF Gruppen's division into operating segments is consistent with the division of the business areas: Civil Engineering, Construction, Betonmast, Property, Energy and Environment, Sweden and Offshore.

Segment information is presented in accordance with the AF Gruppen's accounting policies in accordance with IFRS with the exception of the principles for revenue recognition for residential property development in accordance with IFRS 15. This policy exception applies to the segments Construction, Property and Sweden. Revenue from projects for own account in these segments is not recognised upon handover as regulated in IFRS 15, but in accordance with the degree of completion method. This means that the recognition of revenue in these projects is the product of the degree of completion, sales ratio and expected contribution margin.

Segment information is presented in accordance with reporting to the Corporate Management Team and is consistent with the financial information utilised by the Company's senior decision-makers when evaluating developments and allocating resources. The effect of the deviant application of principles on the consolidated accounts is illustrated in a separate table in the segment information. Additional information on projects for own account is provided in Note 7.

Civil Engineering

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
External operating and other revenue	1,626	1,317	4,394	3,841	5,370
Internal operating and other revenue	54	145	241	400	549
Total operating and other revenue	1,680	1,462	4,636	4,241	5,919
EBITDA	183	141	456	423	636
Earnings before financial items and tax (EBIT)	129	92	310	275	445
Earnings before tax (EBT)	135	93	320	272	440
EBITDA-margin	10.9 %	9.6 %	9.8 %	10.0 %	10.7 %
Operating margin	7.7 %	6.3 %	6.7 %	6.5 %	7.5 %
Profit margin	8.0 %	6.4 %	6.9 %	6.4 %	7.4 %
Assets	3,711	3,073	3,711	3,073	3,546
Order intake	1,092	1,157	8,709	9,249	14,409
Order backlog	19,441	11,887	19,441	11,887	15,368

Construction

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
External operating and other revenue	2,285	2,599	7,492	7,962	10,992
Internal operating and other revenue	0	32	57	67	98
Total operating and other revenue	2,285	2,631	7,549	8,029	11,090
EBITDA	114	121	320	265	410
Earnings before financial items and tax (EBIT)	93	100	256	199	322
Earnings before tax (EBT)	89	99	240	199	318
EBITDA-margin	5.0 %	4.6 %	4.2 %	3.3 %	3.7 %
Operating margin	4.1 %	3.8 %	3.4 %	2.5 %	2.9 %
Profit margin	3.9 %	3.8 %	3.2 %	2.5 %	2.9 %
Assets	5,103	5,166	5,103	5,166	4,887
Order intake	1,150	1,304	6,839	6,324	7,586
Order backlog	9,335	11,844	9,335	11,844	10,045

Betonmast

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
External operating and other revenue	1,059	1,252	3,382	3,766	5,142
Internal operating and other revenue	0	-		2	2
Total operating and other revenue	1,059	1,252	3,382	3,768	5,145
EBITDA	25	43	102	107	190
Earnings before financial items and tax (EBIT)	19	37	86	89	166
Earnings before tax (EBT)	25	41	102	91	174
EBITDA-margin	2.3 %	3.4 %	3.0 %	2.8 %	3.7 %
Operating margin	1.8 %	3.0 %	2.6 %	2.4 %	3.2 %
Profit margin	2.3 %	3.3 %	3.0 %	2.4 %	3.4 %
Assets	3,194	3,309	3,194	3,309	3,257
Order intake	1,047	377	3,854	2,085	2,506
Order backlog	4,887	5,370	4,887	5,370	4,415

Property

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
External operating and other revenue	4	7	20	18	30
Internal operating and other revenue	-	-	-	-	-
Total operating and other revenue	4	7	20	18	30
EBITDA	-4	-5	-9	54	75
Earnings before financial items and tax (EBIT)	-4	-5	-9	54	75
Earnings before tax (EBT)	0	-3	0	59	82
EBITDA-margin	-	-	-	-	-
Operating margin	-	-	-	-	-
Profit margin	-	-	-	-	-
Assets	806	577	806	577	660
Order backlog	-	-	-	-	-

Energy and Environment

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
External operating and other revenue	350	237	934	700	988
Internal operating and other revenue	30	23	59	53	74
Total operating and other revenue	381	261	994	753	1,062
EBITDA	38	38	100	101	150
Earnings before financial items and tax (EBIT)	21	21	51	51	84
Earnings before tax (EBT)	22	21	56	50	82
EBITDA-margin	9.9 %	14.7 %	10.0 %	13.4 %	14.2 %
Operating margin	5.6 %	8.2 %	5.1 %	6.8 %	7.9 %
Profit margin	5.9 %	7.9 %	5.6 %	6.7 %	7.7 %
Assets	812	702	812	702	733
Order intake	300	262	1,757	726	987
Order backlog	1,403	688	1,403	688	640

Sweden

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
External operating and other revenue	1,549	1,758	5,602	5,297	7,438
Internal operating and other revenue	18	1	42	6	7
Total operating and other revenue	1,567	1,759	5,644	5,303	7,445
EBITDA	18	-20	-83	132	193
Earnings before financial items and tax (EBIT)	-	-35	-135	86	130
Earnings before tax (EBT)	-4	-36	-141	82	127
EBITDA-margin	1.1 %	-1.1 %	-1.5 %	2.5 %	2.6 %
Operating margin	-0.0 %	-2.0 %	-2.4 %	1.6 %	1.7 %
Profit margin	-0.2 %	-2.0 %	-2.5 %	1.6 %	1.7 %
Assets	2,684	2,940	2,684	2,940	2,712
Order intake	511	1,351	3,163	4,262	5,970
Order backlog	5,156	8,071	5,156	8,071	7,638

Offshore

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
External operating and other revenue	208	380	794	869	1,236
Internal operating and other revenue	-	-	1	1	1
Total operating and other revenue	208	380	795	870	1,238
EBITDA	-111	59	-62	128	194
Earnings before financial items and tax (EBIT)	-119	51	-84	105	164
Earnings before tax (EBT)	-126	46	-98	102	160
EBITDA-margin	-53.3 %	15.4 %	-7.8 %	14.7 %	15.7 %
Operating margin	-56.9 %	13.4 %	-10.6 %	12.0 %	13.2 %
Profit margin	-60.2 %	12.2 %	-12.3 %	11.7 %	12.9 %
Assets	950	1,066	950	1,066	1,003
Order intake	125	873	463	1,282	1,417
Order backlog	1,362	1,927	1,362	1,927	1,694

Other Segments (Group)

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
External operating and other revenue	33	16	79	42	59
Internal operating and other revenue	13	15	42	35	48
Total operating and other revenue	46	30	121	77	107
EBITDA	27	10	63	33	40
Earnings before financial items and tax (EBIT) Earnings before tax (EBT)	7 -12	-6 -13	5 -20	-15 -20	-24 -31
Assets	1,668	1,478	1,668	1,478	2,175
Order backlog	-	-	-	-	-

Eliminations

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
External operating and other revenue	-84	-34	-265	229	152
Internal operating and other revenue	-116	-217	-442	-563	-779
Total operating and other revenue	-200	-251	-707	-334	-627
EBITDA	-9	2	-17	39	33
Earnings before financial items and tax (EBIT)	-9	2	-17	39	33
Earnings before tax (EBT)	-17	1	-34	38	33
Assets	-3,829	-3,556	-3,829	-3,556	-4,448
Order backlog	-377	-329	-377	-329	-410

GAAP adjustments (IFRS 15)

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
External operating and other revenue	-123	5	-282	-86	-203
Internal operating and other revenue	-	-	-	-	-
Total operating and other revenue	-123	5	-282	-86	-203
EBITDA	-10	14	-16	24	15
Earnings before financial items and tax (EBIT)	-10	14	-16	24	15
Earnings before tax (EBT)	-10	14	-16	24	15
Assets	-89	-60	-89	-60	-67
Order backlog	657	258	657	258	375

Segment total

NOK million	3Q 23	3Q 22	YTD 3Q 23	YTD 3Q 22	2022
External operating and other revenue	6,907	7,537	22,152	22,638	31,205
Internal operating and other revenue	-	-	-	-	-
Total operating and other revenue	6,907	7,537	22,152	22,638	31,205
EBITDA	270	404	854	1,306	1,937
Earnings before financial items and tax (EBIT)	128	271	447	907	1,409
Earnings before tax (EBT)	103	263	408	898	1,400
EBITDA-margin	3.9 %	5.4 %	3.9 %	5.8 %	6.2 %
Operating margin	1.9 %	3.6 %	2.0 %	4.0 %	4.5 %
Profit margin	1.5 %	3.5 %	1.8 %	4.0 %	4.5 %
Assets	15,009	14,695	15,009	14,695	14,457
Order intake	4,078	5,249	24,251	23,707	32,324
Order backlog	41,864	39,716	41,864	39,716	39,765

NOTES

1. GENERAL INFORMATION

AF Gruppen is one of Norway's leading contracting and industrial groups. AF Gruppen is divided into seven business areas: Civil Engineering, Construction, Betonmast, Property, Energy and Environment, Sweden and Offshore.

AF Gruppen ASA is a public limited company registered and domiciled in Norway. The head office is located at Innspurten 15, 0663 Oslo. AF is listed on Oslo Børs under the ticker symbol AFG.

This summary of financial information for the 3rd quarter 2023 has not been audited.

2. BASIS OF PREPARATION

The consolidated accounts for AF Gruppen encompass AF Gruppen ASA and its subsidiaries, joint ventures and associated companies. The consolidated financial statements for the 3rd quarter 2023 have been prepared in accordance with IAS 34 Interim Accounts. The summary of the financial information presented in the quarterly accounts is intended to be read in conjunction with the annual report for 2022, which has been prepared in accordance with the International Financial Reporting Standards (IFRS).

As a result of rounding off, the numbers and percentages will not always add up to the total.

3. CHANGES IN THE GROUP'S STRUCTURE

There were no material changes to the Group's structure during the year.

4. ACCOUNTING POLICIES

Effect of IFRS 16 lease liability

AF Gruppen presents figures for the Group as lessee to comply with the accounting principles for IFRS 16. The present value of future rental payments for lease liabilities is recognised in the balance sheet as an interest-bearing loan, and right of use is recognised as a non-current asset, with the exception of for short-term or terminable leases. The right of use recognised on the balance sheet will be amortised over the agreed term of the lease including any reasonably certain option periods, and interest on the lease liability will be recognised as an interest expense. Both instalments and interest on lease liabilities recognised on the balance sheet are classified as cash flow from financing activities in the cash flow statement.

Recognised lease liabilities in the Group affect key figures, including equity ratio and net interest-bearing liabilities, as shown in tables on the next page.

Consolidated statement of income – Effect of IFRS 16

NOK million	3Q 23 less IFRS 16	Effect of IFRS 16	3Q 23	YTD 3Q 23 less IFRS 16	Effect of IFRS 16	YTD 3Q 23
Operating expenses excl. depr. and impairment	-581	78	-504	-1,857	221	-1,636
EBITDA	193	78	270	634	221	854
Depr. and impairment of right of use assets	-13	-71	-84	-41	-203	-243
Earnings before financial items and tax (EBIT)	122	7	128	429	18	447
Net financial items	-19	-7	-25	-21	-18	-39
Earnings before tax (EBT)	103	-	103	408	-	408
Income tax expense	-25	-	-25	-92	-1	-93
Net income for the period	79	-	78	315	-	315

NOK million	3Q 22 less IFRS 16	Effect of IFRS 16	3Q 22	YTD 3Q 22 less IFRS 16	Effect of IFRS 16	YTD 3Q 22	2022 less IFRS 16	Effect of IFRS 16	2022
Operating expenses excl. depr. and impairment	-591	74	-517	-1,670	225	-1,445	-2,368	296	-2,072
EBITDA	330	74	404	1,081	225	1,306	1,640	296	1,937
Depr. and impairment of right of use assets	-10	-69	-79	-30	-211	-241	-40	-276	-317
Earnings before financial items and tax (EBIT)	266	5	271	892	15	907	1,389	20	1,409
Net financial items	-4	-5	-8	3	-13	-9	8	-18	-10
Earnings before tax (EBT)	262	-	263	896	2	898	1,397	2	1,400
Income tax expense	-56	-	-56	-174	-1	-175	-248	-1	-248
Net income for the period	207	-	207	722	1	723	1,150	2	1,151

Consolidated statement of financial position – Effect of IFRS 16

NOK million	30.09.23 less IFRS 16	Effect of IFRS 16	30.09.23	30.09.22 less IFRS 16	Effect of IFRS 16	30.09.22	31.12.22 less IFRS 16	Effect of IFRS 16	2022
Right of use assets	234	713	947	225	630	855	233	627	859
Total assets	14,296	713	15,009	14,065	630	14,695	13,830	627	14,457
Total equity	2,994	-21	2,973	3,307	-21	3,286	3,514	-20	3,494
Interest-bearing debt - lease liability (non-current)	167	506	672	176	482	658	140	467	607
Deferred tax	443	-4	439	627	-5	622	450	-5	445
Interest-bearing debt - lease liability (current)	42	273	315	35	225	260	64	226	290
Total equity and liabilities	14,296	713	15,009	14,065	630	14,695	13,830	627	14,457
Equity ratio	20.9 %	-	19.8 %	23.5 %	-	22.4 %	25.4 %	-	24.2 %
Gross interest-bearing debt	1,473	779	2,251	391	707	1,099	713	693	1,406
Net interest-bearing debt (receivabl.)	602	779	1,381	-961	707	-254	-364	693	329

5. ESTIMATES

The preparation of the interim accounts requires the use of assessments, estimates and assumptions that have an effect on the application of accounting principles and recognised figures related to assets and liabilities, revenues and costs. The estimates are based on the management's best judgement and experience, and there is some uncertainty related to the concurrence of these estimates with the actual result. Estimates and their underlying assumptions are assessed on a continuous basis. Changes in accounting estimates are recognised for the period in which the estimate is changed and for future periods if these are affected by the change in estimate.

6. TRANSACTIONS WITH RELATED PARTIES

The Group's related parties consist of associates, joint ventures, the Company's shareholders, members of the Board of Directors and Corporate Management Team. All business transactions with related parties are carried out in accordance with the arm's length principle.

7. DEVIANT APPLICATION OF PRINCIPLES IN THE SEGMENT ACCOUNTS

The segment information is presented in accordance with the Group's accounting policies in accordance with IFRS except for the principles for revenue recognition for residential property development in accordance with IFRS 15. This policy exception applies to the Construction, Property and Sweden segments. Revenue from projects for own account in these segments is not recognised upon handover as regulated in IFRS 15, but in accordance with the percentage of completion method. This means that revenue and cost for these projects is recognized in proportion with the stage of completion and the sales ratio for the project. The effect of this on the consolidated accounts is illustrated in a separate table in the segment information. The Betonmast segment is reported in accordance with IFRS. To ensure completeness Betonmast's property projects are included in the table below.

The effect of the deviant application of principles in the segment accounts with respect to earnings before tax is NOK -10 million (14 million) for the 3rd quarter 2023, and -16 million (24 million) year to date. The effect on equity was NOK -90 million (-65 million), and the accumulated reversed revenues were NOK 657 million (258 million) as at 30 September 2023.

The table on the next page shows residential housing projects for our own account that are in the production phase. Contractor values have been included in those cases where group companies are the contractor.

			Number of housing units		Construction period
Property projects for own account	AF's construction value1)	Total number	Hereof transferred in 2022	Hereof completed not transf.	Start up	Completion	Ownership share AF
Lilleby Triangel B4, Trondheim	51	54	1	-	Q3 2019	Q2 2021	33%
Brøter Terrasse, Lillestrøm	-	78	1	4	Q3 2020	Q4 2022	35%
Total completed earlier years - Property2)	51	132	2	4
Kosterbaden Fritid, Koster	-	20	-	13	-	-	100%
Snipetorp, Skien	-	16	1	3	Q3 2018	Q2 2020	50%
Lietorvet II, Skien	-	26	-	1	Q3 2019	Q4 2021	25%
2317 Sentrumskvartalet A-B, Hamar	172	73	1	1	Q2 2020	Q1 2022	50%
2317 Sentrumskvartalet C, Hamar	54	23	2	3	Q2 2021	Q3 2022	50%
Klosterøya Vest 4, Skien	-	44	14	-	Q1 2021	Q3 2022	24%
Total completed earlier years - Betonmast2)	226	202	18	21
Stadsgården 2, Halmstad	69	42	1	-	Q4 2021	Q3 2022	50%
Total completed earlier years - Sweden2)	69	42	1	-
Kråkehaugen, Bergen (LAB Eiendom)	185	55	53	2	Q2 2021	Q2 2023	50%
Total completed 2023 - Property segment	185	55	53	2
2317 Sentrumskvartalet D, Hamar	70	25	23	2	Q3 2021	Q1 2023	50%
Klosterøya Vest 4, Skien	-	25	12	13	Q2 2021	Q1 2023	24%
SPG Bostader Linden, Strömstad3)	154	162	-	162	Q4 2021	Q3 2023	45%
SPG Bostader Häggen, Strömstad3)	89	94	-	94	Q2 2022	Q3 2023	45%
Total completed in 2023 - Betonmast segment	314	306	35	271
Fyrstikkbakken, Oslo	472	159	-	-	Q2 2021	Q1 2024	50%
Skårersletta Midt 1 og 2, Lørenskog	482	169	-	-	Q3 2021	Q2 2024	50%
Bekkestua Have, Bærum	-	232	-	-	Q4 2021	Q2 2024	50%
Rolvsrud Arena trinn 1, Lørenskog	357	95	-	-	Q2 2022	Q3 2024	33%
Skiparviklia 3D, Bergen (LAB Eiendom)	25	4	-	-	Q2 2022	Q4 2023	50%
Baneveien, Bergen (LAB Eiendom)	18	1	-	-	Q2 2022	Q1 2024	50%
Skårersletta Midt 3 og 4, Lørenskog	360	126	-	-	Q4 2022	Q4 2024	50%
Rolvsrud Arena trinn 2 og 3, Lørenskog	372	99	-	-	Q4 2022	Q1 2025	33%
Rolvsrud Arena trinn 4, Lørenskog	131	35			Q3 2023	Q3 2025	33%
Total in production - Property segment	2,217	920	-	-
Veum Hageby Tunet, Fredrikstad	-	15	-	-	Q2 2023	Q2 2025	30%
Total in production - Betonmast segment	0	15	-	-
BRF Prefekten, Mölndal	130	83	-	-	Q4 2021	Q1 2024	50%
Total in production - Sweden segment	130	83	-	-

1) NOK million excl. VAT

2) Only projects with not sold or not transferred units as at year end 2022 are included.

3) Apartments for rental ("hyresrett"). Will be sold collectively when shares are transferred from property development company.

8. EVENTS AFTER THE BALANCE SHEET DATE

There have been no events since the end of the quarter that would have had a material effect on the quarterly financial statements.

ALTERNATIVE PERFORMANCE MEASURES

AF Gruppen presents alternative performance targets as a supplement to performance targets that are regulated by IFRS. The alternative performance targets are presented to provide better insight into and understanding of the operations, financial standing and foundation for development going forward. AF Gruppen uses alternative performance targets that are commonly used in the industry and among analysts and investors.

Return on capital employed (ROaCE):

This performance target provides useful information to both AF's management and Board of Directors, as well as to investors concerning the results that have been achieved during the period under analysis. AF uses the performance target to measure the return on capital employed, regardless of whether the financing is through equity capital or debt. Use of the performance target should not be considered an alternative to performance targets calculated in accordance with IFRS, but as a supplement.

The alternative performance targets are defined as follows:

EBITDA: Earnings before i) taxes, ii) net financial items, iii) depreciation and amortisation.

Operating profit (EBIT): Earnings before i) taxes, ii) net financial items.

EBITDA margin: EBITDA divided by operating revenue and other revenues.

Operating margin: Operating profit (EBIT) divided by operating revenue and other revenues.

Profit margin: Earnings before tax divided by operating revenue and other revenues.

Gross interest-bearing debt: Sum total of long-term interest-bearing loans and credits and short-term interest-bearing loans and credits.

Net interest-bearing debt (receivables): Gross interest-bearing debt less i) long-term interest-bearing receivables, ii) short-term interest-bearing receivables and iii) cash and cash equivalents.

Capital employed: Sum total of shareholders' equity and gross interest-bearing debt.

Average capital employed: Average capital employed in the last four quarters.

Return on capital employed (ROaCE): Earnings before taxes and interest divided by the average capital employed.

Equity ratio: Shareholders' equity divided by total equity and liabilities.

Average shareholders' equity: Average shareholders' equity in the last four quarters.

Return on equity: Net income divided by average shareholders' equity.

Order intake: Estimated value of contracts, contract changes and orders that have been agreed upon during the reporting period.

Order backlog: Remaining estimated value of contracts, contract changes and orders that have been agreed upon, but have not been earned by the reporting date.

The table below shows the reconciliation of alternative performance targets with line items in the reported financial figures in accordance with IFRS.

NOK million	30/09/23	30/09/22	31/12/22
GROSS INTEREST-BEARING DEBT / NET INTEREST-BEARING DEBT
Non-current interest-bearing debt	79	75	75
Non-current interest-bearing debt - lease liability	672	658	607
Current interest-bearing debt	1,185	106	433
Current interest-bearing debt - lease liability	315	260	290
Gross interest-bearing debt	2,251	1,099	1,406
Less:
Non-current interest-bearing receivables	-291	-264	-268
Current interest-bearing receivables	-54	-54	-44
Cash and cash equivalents	-526	-1,036	-765
Net interest-bearing debt (receivables)	1,381	-254	329

NOK million	30/09/23	30/09/22	31/12/22
CAPITAL EMPLOYED
Total equity	2,973	3,286	3,494
Gross interest-bearing debt	2,251	1,099	1,406
Capital employed	5,224	4,385	4,900
AVERAGE CAPITAL EMPLOYED
Capital employed as at 4th quarter 2021	-	4,571	-
Capital employed as at 1st quarter 2022	-	4,593	4,593
Capital employed as at 2nd quarter 2022	-	4,366	4,366
Capital employed as at 3rd quarter 2022	-	4,385	4,385
Capital employed as at 4th quarter 2022	4,900	-	4,900
Capital employed as at 1st quarter 2023	5,071	-	-
Capital employed as at 2nd quarter 2023	5,293	-	-
Capital employed as at 3rd quarter 2023	5,224	-	-
Average capital employed	5,122	4,479	4,561
RETURN ON CAPITAL EMPLOYED
Earnings before tax 4th quarter 2021	-	635	-
Earnings before tax 1st quarter 2022	-	209	209
Earnings before tax 2nd quarter 2022	-	426	426
Earnings before tax 3rd quarter 2022	-	263	263
Earnings before tax 4th quarter 2022	502	-	502
Earnings before tax 1st quarter 2023	13	-	-
Earnings before tax 2nd quarter 2023	292	-	-
Earnings before tax 3rd quarter 2023	103	-	-
Earnings before tax last four quarters	910	1,532	1,400
Interest expense 4th quarter 2021	-	-2	-
Interest expense 1st quarter 2022	-	10	10
Interest expense 2nd quarter 2022	-	8	8
Interest expense 3rd quarter 2022	-	10	10
Interest expense 4th quarter 2022	15	-	15
Interest expense 1st quarter 2023	20	-	-
Interest expense 2nd quarter 2023	32	-	-
Interest expense 3rd quarter 2023	27	-	-
Interest expense last four quarters	93	25	43
Earnings before tax and interest expense last four quarters	1,003	1,558	1,442
Divided by:
Average capital employed	5,122	4,479	4,561
Return on capital employed	19.6 %	34.8 %	31.6 %

NOK million	30/09/23	30/09/22	31/12/22
EQUITY RATIO
Total equity	2,973	3,286	3,494
Divided by:
Total equity and liabilities	15,009	14,695	14,457
Equity ratio	19.8 %	22.4 %	24.2 %
AVERAGE Total equity
Total equity as at 4th quarter 2021	-	3,572	-
Total equity as at 1st quarter 2022	-	3,639	3,639
Total equity as at 2nd quarter 2022	-	3,126	3,126
Total equity as at 3rd quarter 2022	-	3,286	3,286
Total equity as at 4th quarter 2022	3,494	-	3,494
Total equity as at 1st quarter 2023	3,458	-	-
Total equity as at 2nd quarter 2023	2,897	-	-
Total equity as at 3rd quarter 2023	2,973	-	-
Average total equity	3,205	3,406	3,386
RETURN ON EQUITY
Net income 4th quarter 2021	-	486	-
Net income 1st quarter 2022	-	179	179
Net income 2nd quarter 2022	-	337	337
Net income 3rd quarter 2022	-	207	207
Net income 4th quarter 2022	428	-	428
Net income 1st quarter 2023	10	-	-
Net income 2nd quarter 2023	227	-	-
Net income 3rd quarter 2023	78	-	-
Net income for the last four quarters	743	1,209	1,151
Divided by:
Average equity	3,205	3,406	3,386
Return on equity	23.2 %	35.5 %	34.0 %

COMPANY INFORMATION

AF Gruppen ASA Financial calendar

Head office:

Innspurten 15 0603 Oslo T +47 22 89 11 00 F +47 22 89 11 01

Postal address:

Postboks 6272 Etterstad 0603 Oslo Norway

Company's Board of Directors

Morten Grongstad, Board Chairman Hege Bømark Kristian Holth Saloume Djoudat Erik Tømmeraas Veiby Hilde Kristin Herud Marianne Gjertsen Ebbesen Hilde Wikesland Flaen Arne Sveen Espen Jahr

Corporate Management

46

Amund Tøftum, CEO Anny Øen, CFO Geir Flåta, EVP Civil Engineering and Property Bård Frydenlund, EVP Sweden and Betonmast Eirik Wraal, EVP Construction, Energy and environment, Corporate social responsibilty Tormod Solberg, EVP Construction Lars Myhre Hjelmeseth, EVP Offshore

Presentation of interim accounts:

10/11/2023 Interim report 3rd quarter 2023 15/02/2024 Interim report 4th quarter 2023 15/05/2024 Interim report 1st quarter 2024

The presentation of interim accounts takes place at Hotel Continental, Stortingsgata 24-26, at 8:30 a.m.

For more information on the company, visit our web site at afgruppen.com

Cover: Instruction of use of protective equipment in Consolvo Photo: Consolvo

Oslo Brannsikring

47

3RD QUARTER 2023