Annual Report (ESEF) • Mar 17, 2022
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Download Source FileUntitled ANNUAL REPORT 2021 3MULTICONSULT ANNUAL REPORT 20212 MULTICONSULT ANNUAL REPORT 2021 CONTENTS PROJECT: THE VIKING AGE MUSEUM, OSLO ILLUSTRATION: AART ARCHITECTS / STATSBYGG Highlights and intro Letter from CEO Directors’ report Annual statement on corporate governance Sustainability and corporate responsibility Group accounts Appendix – Sustainability & GRI Index Company accounts Board and management 4 12 19 36 50 81 136 147 174 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Interactive PDF For fast and easy navigation click on the main menu and in the indexes. 4 5MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 HIGHLIGHTS 2021 3 804 NET OPERATING REVENUES Net operating revenues up 3.9% to NOK 3 804 million Billing ratio of 70.4 per cent (70.9). Other operating expenses increased by NOK 47.3 million to NOK 449.5 million Net prot of NOK 234.7 million (249.2) and earnings per share NOK 8.67 (9.25) 70.4% 8.67 449.5 234.7 BILLING RATIO EPS OTHER OPERATING EXPENSES NET PROFIT EBIT of NOK 348.9 million (371.0), equal to an EBIT margin of 9.2 per cent margin (10.1) 348.9 EBIT 11.8% Y-O-Y -5.8% Y-O-Y MARGIN 9.2% -0.5PP Y-O-Y NOK 3.9% Y-O-Y Amounts in NOK million (except EPS, and percentage) PROJECT: CONSTRUCTION CITY, OSLO ILLUSTRATION: LINK ARKITEKTUR / 3D ESTATE Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Highlights and intro 7MULTICONSULT ANNUAL REPORT 2021 Multiconsult ASA acquires Erichsen & Horgen AS, a leading Norwegian engineering consultancy with a strong market position within buildings construction, HVAC, WWT, energy, environment and sustainability. Multiconsult acquires Nordland Teknikk AS and Smidt & Ingebrigtsen AS that strengthens competence and market position in the Helgeland region and western Norway. LINK Arkitektur AS to design Construction City - LINK Arkitektur has entered into an agreement with Construction City Bygg AS to design the business cluster Construction City in Oslo, Norway. Multiconsult is set to deliver engineering services for the Sotra project - Norwegian Public Roads Administration Construction Division (NO: Statens vegvesen) has selected the Sotra Link to de- sign, build and operate the Sotra project PPP (NO: Rv.555 Sotrasambandet) outside Bergen. Multiconsult was selected as advisor to carry out detailed zoning plan and preliminary design for development of road and bridge crossing at Fetsund for Norwegian Public Roads Administration Construction Division (NO: Statens vegvesen). Nye Veier AS informed that the construction contract for the E6 Moelven - Roterud has been terminated due to negative cost development in the project. Multiconsult was subcontractor to the consortium Berinor ANS. Statsbygg has nominated Multiconsult for the owner’s engineer contract (NO: Prosjekterings- og byggrådgivningsgruppe) related to the development of the Ocean Space Centre in Trondheim. LINK Arkitektur will act as subcontractor with responsibility for architectural services. Deichman Bjørvika awarded Public Library of the Year 2021 (int.) and Building of the year 2021 (no.), Highway 3/25 awarded Project of the year 2021 (no.), The Hurtigruten Museum won The European Steel Design Award 2021 (int.) and The new extension to Rigshospitalet, The North Wing, in Denmark has been selected as the world's best new health building at the renowned World Architecture Festival. Richard Opsahl Resvoll won the Young Advisor of the Year 2021 (RIF). 2021 HIGHLIGHTS AND KEY FIGURES E6 2021 2020 2019 FINANCIAL Net operating revenues 3 803.7 3 660.9 3 435.8 Growth (%) 3.9% 6.6% 3.0% Employee benet expenses 2 811.4 2 660.1 2 654.4 Other operating expenses 449.5 402.2 482.3 EBITDA 542.8 598.7 299.1 EBITDA margin (%) 14.3% 16.4% 8.7% EBIT 348.9 371.0 106.3 EBIT margin (%) 9.2% 10.1% 3.1% EBIT ex. restructuring cost 1) 401.0 140.5 EBIT margin ex. restructuring cost 1) 11.0% 4.1% Reported prot for the period 234.7 249.2 35.1 Earnings per share (NOK) 8.67 9.25 1.30 Average number of shares 27 080 810 26 930 713 26 957 519 Net interest bearing debt 2) 8.5 (293.3) 91.6 Cash and cash equivalents 156.2 277.4 173.6 OPERATIONAL Order intake 4 352 4 684 4 348 Order backlog 3 260 3 327 2 968 Billing ratio (%) 70.4% 70.9% 69.2% Employees 3 200 2 925 2 994 Amounts in NOK million (except EPS, shares and percentage) 2021 CONSOLIDATED KEY FIGURES Multiconsult’s attractive recruitment position was con- rmed by the annual Universum survey among engineering students and professionals in Norway in May 2021. Multi- consult once again ranked number one in the construction industry (and among consultancy companies) in Norway and number three among all Engineer/Natural Science compa- nies in Norway. On 3 November 2021, Multiconsult held a capital markets day, and presented an update on its strategic direction, market update and nancial targets. MUST summer internship was popular and successfully completed with 991 applicants for 70 positions. Employee share purchase programme 2021 was success- fully completed in the fourth quarter with 27 per cent (22 per cent) participation among eligible employees. 1) EBIT ex. restructuring cost is calculated by (i) excluding one-o nextLEVEL restructuring cost of NOK 30.0 million in 2020, and (ii) excluding one-o charges of NOK 30.2 million and NOK 4.0 million severance/restructuring cost in 2019. 2) Excluding IFRS 16 lease liabilities, negative gure reflecting net cash position. 6 MULTICONSULT ANNUAL REPORT 2021 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Highlights and intro 9MULTICONSULT ANNUAL REPORT 2021 Overview of the business Multiconsult group (“Multiconsult” or “the group”) comprises Multiconsult ASA (“parent company” or “company”) and all subsidiaries and associated companies. Business and location Multiconsult ASA is a Norwegian public limited liability company with its head oce in Oslo, Norway. Activities are organised through subsidiaries both in Norway and interna- tionally, as well as project oces managed from Oslo. Most of our turnover comes from work in Norway through the largest subsidiary Multiconsult Norge AS with head oce in the same location as the parent company. Multiconsult has oces in most large cities around Norway, from Svalbard in the north to Kristiansand in the south with all of our expertise is available through all of our oces. In total the Multiconsult group has more than 60 oces in Norway and abroad and had 3 200 employees as of 31 December 2021. Multiconsult is a leading specialist in engineering design, consultancy and architecture services. Its business concept is to deliver multidisciplinary consultancy, creating value for customers, shareholders, employees and the group. The group’s principal activiti- es involve multidisciplinary consultancy, design, planning, project supervision, project management, geotechnical site surveys, verication and controls in Norway. The group provides engineering services in Sweden and Poland in addition to architecture services in all three Scandinavian countries. The group now includes the following international subsidiaries; Multiconsult Polska Sp. z o.o., Multiconsult Asia Pte Ltd, Multiconsult UK Ltd, Iterio AB, LINK Arkitektur AB, LINK Arkitektur A/S. In addition, Multiconsult has ownership interests in Norplan Tanzania Ltd. The group included the following Norwegian subsidiaries as of end of 2021 Multiconsult Norge AS, LINK Arkitektur AS, Erichsen & Horgen AS, Ingeniørrmaet Malnes og Endre- sen AS and Nordland Teknikk AS. Multiconsult has branch oces with activity in Zambia, Kenya and Tanzania. In additi- on, Multiconsult have several project oces and local presentation in connection with project executions. This enables Multiconsult to provide its expertise and resources to customers throughout the world. Revenue model The group’s business model is mainly based on consultancy fee revenues generated from own employees. In certain projects, services are also provided by external consul- tants (“sub-consultants”). In some projects, several partners have entered into coope- ration agreements to bid collectively, where partners recognise their share of revenues. There is a clear denition of responsibility between Multiconsult and the partners or sub consultants. Projects can vary in duration, and long-term projects may extend over a number of years. The scope and duration of the projects are often extended through supplementary contracts and orders. THIS IS MULTICONSULT OVERVIEW OF THE BUSINESS 8 MULTICONSULT ANNUAL REPORT 2021 PROJECT: HARPE BRIDGE, COUNTY INNLANDET PHOTO: HUNDVEN-CLEMENTS PHOTOGRAPHY Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Highlights and intro 10 11MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Long-term, stable customer base Multiconsult strives to maintain good, long-term customer relations. A majority of the largest customers are stable, long-term customers, who have been placing orders with Multiconsult for many years. The group’s ten largest custo- mers in Norway are dominated by solid, public enterprises with established investment plans and limited credit risk. A new strategic platform Our vision bridging the past and the future, maintain as an important guideline for the company. Multiconsult shall act as a bridge between what has been and what will be wherever humans travel, work and live. The common denominator in all our projects is that they shall, without exception, contribute to improving people’s lives, generating growth, and promoting development. By understanding the past, we can make progress, and we will promote sustainable development wherever we are gi- ven the opportunity to leave our mark. In Multiconsult we have a strong commitment to our social responsibility. We will create value to society, enable pro- gress and contribute to sustainable development - for both present and future generations. Our culture of empowerment is all about enabling our em- ployees to succeed. We truly believe that a united team mo- ving towards a common goal will ensure that both our and future generations can continue to do what we are best at: To make the impossible possible. In 2021 Multiconsult launched a new strategic direction. The strategic work has led to a new business idea for the group that shall ensure Multiconsult’s ability to create value gene- rating business opportunities based on a strong customer & market insight: We will make it easier to develop and execute value- creating projects with a life-cycle perspective. The aim is to create opportunities, solve challenges and remove barriers, in order to execute value-creating projects with a life-cycle perspective. It is through participation in projects that Multiconsult cre- ates value. The group will seek complimentary and binding partnerships with the most competent and reputable players BUSINESS AREAS AND REPORTING STRUCTURE The group’s activities are organised in ve reporting seg- ments, and comprises the following reporting segments: • Region Oslo • Region Norway • Energy • International • LINK Arkitektur A description of each segment is presented in the Directors’ report in this annual report under segment information on page 25 in this report. In 2021 Multiconsult comprised of ve business areas, which correspond to the group’s key market segments and which operate across geographical reporting segments: • Buildings & Properties • Mobility & Transportation • Renewable Energy • Water & Environment • Industry A description of the group’s business areas can be found in note 5 on page 104 in this report. because value creation is maximized when the best players in the industry work together and are jointly able to deliver comprehensive solutions with a life-cycle perspective. By collaborating Multiconsult will strive towards a seamless project implementation and an interconnected value chain. By taking a new market position, Multiconsult seeks to in- crease the value creation for society, clients, project owners and the company. To achieve our strategic ambition, we have dened ve stra- tegic priorities for the years to come: • Become the industry’s «solutions architect». • Forge powerful partnerships to create a more seamless value chain where all contributors share a common visi- on and overall goal for the project. • Establish an «innovation-incubator» to innovate new business. • Grasp market opportunities unleashed by society’s transition towards sustainable energy solutions • Strive to leverage the opportunities presented by digi- talisation in our industry. At the Capital Markets Day 3 November 2021 Multiconsult reconrmed its nancial targets related to, among others, revenue growth and protability. With an ambition that the revenue growth from 2022 to 2026 is at a CAGR of 8-10 per cent over the cycle, including M&A. The protability target is an EBIT margin of 10 per cent measured on an annual basis, excluding extraordinary items. Maintain a solid balance she- et to support daily operations and growth targets, but also withstand periods of weaker markets. The maximum gearing (NIBD/EBITDA) shall be 2.5x. The company shall aim to have a gearing of 1.0x - 2.0x in normal circumstances. In special circumstances (such as acquisitions), gearing may go up to 3.0x for a period not exceeding 18 months. Gearing is mea- sured excluding IFRS 16 eects. Moderate and selective M&A strategy with primary focus on core business with continuously monitoring opportunities – also including opportunities within digitalisation, sustainabi- lity and new business models The dividend policy and equity ratio remain unchanged with an ambition to distribute at least 50 per cent of the group’s net prot annually and an equity ratio excluding IFRS 16 ef- fects higher than 25 per cent. PROJECT: THE SOTRA PROJECT, SOTRA ILLUSTRATION: SOTRA LINK Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Highlights and intro 13MULTICONSULT ANNUAL REPORT 201712 MULTICONSULT ANNUAL REPORT 2021 Sustainability is embedded in our vision and in our social mandate. We will deliver sustainability through own busi- ness, its operations, and through its corporate responsibi- lity. Our greatest contribution to sustainability and the green shift will be realised through our assignments. However, we have also set ambitious goals for our own business activities. CONTINUED PROFITABILITY Following an operational turnaround in the last half of 2019 and 2020, the results of 2021 show that we achieved sustai- nable protability. The foundation for continued protable growth has been established. At the same time, we know that this will require persistent focus and hard work. In 2021, we achieved sales of NOK 4 352 million, and ended the year with a solid order backlog of NOK 3 260 million. In 2021, we en- countered some challenges in the business area of Mobility & Transportation, partly due to the loss of a larger assignment, however the outlook for transportation within road and rail are solid. Our architectural business in Norway has another solid year, while we in Sweden and Denmark are still facing challenges. It is encouraging to see positive developments in Denmark were the turnaround is largely undertaken, and the turnaround is underway in Sweden. Our other international businesses, Multiconsult Polska and Iterio AB continued to deliver good results throughout the year. STRENGTHENED MARKET POSITION In 2021, we strengthened our position and marketing strategi- es even more. During the year, the reputable Erichsen & Hor- gen AS, Norway’s leading company in Heating, Ventilation and Air Conditioning (HVAC), energy and environment joined Mul- ticonsult. We have become well acquainted with the company through our collaboration on important projects such as the new hospital at Gaustad (NO: nye Rikshospitalet), the new Drammen Hospital, Barcode high-rise buildings in Bjørvika, and Campus Ås at the Norwegian University of Life Sciences NMBU. With Erichsen & Horgen on our team, Multiconsult are positioned to become the top Norwegian engineering con- sultant company in the area of building and properties. This acquisition has strengthened our geographical footprint in Grenland, Viken, Innlandet and Trøndelag. With the acquisition of Nordland Teknikk AS and Smidt & Ingebrigtsen AS, we are now better equipped for other major multidisciplinary projects, BROADER PERSPECTIVE We have a strategic ambition to become an actor who ma- kes it easier to develop and realise value-creating projects from a life cycle perspective. This is an ambitious goal, yet we have all the prerequisites to become this actor over time. We want to be the best at understanding what the client se- eks to achieve with their project, and at providing good ideas and solutions for how values can be maximised by ensuring that all actors’ expertise is used in an optimal fashion. We must dare to think big and always maintain our focus on the project goal. We want to help dismantle the silos that are currently aecting our industry. We will work to encourage various actors in projects to be less concerned about their own gains and rather show a greater interest in contributing to a broader perspective with shared goals. We believe that value creation is maximised when the best actors work to- gether towards agreed objectives, and with shared respon- sibility for risk and gain. We will therefore seek complemen- tary and binding partnerships with the most talented actors. Together, we will create opportunities, resolve challenges and remove barriers. Conditions for value creation are dened at an early stage of the project development. This requires actors to maintain a wider perspective at an early stage, in addition to an un- derstanding of the project’s life cycle. Multiconsult has this expertise, and it would therefore be sensible to seek posi- tions that allow us to enter projects earlier. We hope to be viewed as an actor that maintains a balanced view of de- sign-to-cost and design-to-value. IN DEMAND AS A PARTNER IN THE GREEN SHIFT Multiconsult has existed for more than one hundred years, and we operate from the perspective that we will be rele- vant for another hundred years. This means we must al- ways be well-positioned to help resolve any challenges our society may encounter. At present, our greatest challenge involves climate change and its consequences. We have de- veloped leading expertise in several areas relevant to the UN Sustainable Development Goals Agenda. By registering our commitment to this agenda and to the UN Global Compact, we have clearly signalled that we want to be part of the so- lution. Our clients are more frequently demanding and re- questing more sustainable solutions. We are very pleased about this. Over the course of 2021, our expertise has been in high demand. We are well positioned to seize the business opportunities arising from society's demands for sustainabi- lity and the green shift. IT IS ALL ABOUT MINDSET In the last two years, many organisations have achieved what was considered impossible, and we have seen the ability and willingness to change when necessary. At Multiconsult, we have always worked hard to prove that what seems impossible can be possible. We know that ob- stacles for courage and speed are more about mindset than technical limitations. In many respects, we are now at a pivotal moment, which the best of us exploit to acquire business opportunities from the challenges faced by the industry, businesses and society. This requires bold and agile organisations. Only those who are brave enough to attempt what others believe is impossible will be able to influence the future of our society, and how it will look, develop and be experienced. We want to be one of these organisations. Grethe Bergly Chief Executive Ocer 13MULTICONSULT ANNUAL REPORT 2021 «In 2021, we strengthened our position and marketing strategies even more.» Photo: Sverre Christian Jarild Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Letter from CEO 14 MULTICONSULT ANNUAL REPORT 2021 gital innovation and invested in our rst digital start-up and established a partnership with major players both within and outside our industry. We will continue to invest in this area, and capitalise on it in the years to come. In 2021, Multiconsult was ranked one of the industry’s most attractive employers among both new graduates and more experienced professionals (Universum 2021). Likewise, our Swedish subsidiary, Iterio AB, was awarded a spot in the “Hall of Fame” of the Great Place to Work Institute, after being ranked one of Sweden’s best workplaces for several years. In 2021, we once again won the «Young Advisor of the Year», this time by our project manager, Richard Opsahl Resvoll. This shows how we are able to attract and develop the best talents. EQUIPPED FOR CONTINUED PROFITABLE GROWTH We have a responsibility to help build a better society for everyone. Our highly skilled engineers and architects are well aware of this responsibility. This requires precision, initiative, focus, collaboration skills, and not least the expertise to de- velop good future-oriented solutions. This responsibility is what drives us to seek new opportunities and better solutions for society and for future generations. During the two years of the Covid-19 pandemic, our organisa- tion has shown a considerable capability for adaptation and new solutions. As large parts of the organisation were forced to work from home, we were uncertain as to what this would mean for our deliveries. Now with the results in hand, we are impressed by the willingness and dedication our employe- es have shown to ensure the success of our clients and our company. This proves that we have employees who take our responsibility seriously. We have managed to make it through 2021 with the strong support and trust of our clients, and by developing good collaborative relationships. We are optimistic about the future, and condent that Multiconsult is equipped for continued protable growth with sustainable value for our clients, owners and ourselves. and have thereby strengthened our market power in Nordland county and western Norway. SOLID POSITIONS In 2021, we experienced a solid market position with good sa- les. We expect our high level of activity to continue in both the private and public sector, and the overall market forecast is good and stable across all business areas. We have a strong market position in our market areas: • We will contribute to an ecient infrastructure through the Sotra Connection, Fornebu Metro Line, Stavanger Bus Rapid Transit, as well as the Solidarity Transport Hub in Poland. • We will strenghten our leading position in healthcare buildings through our key role in the new hospital at Gaustad (NO: nye Rikshospitalet), the new Aker Hospi- tal, the new Drammen Hospital, the new Finnmark Hos- pital, and by winning the new Växjö Hospital in Sweden. • We are involved a number of the interesting projects initiating by the green shift, such as Northern Lights (CCS), Barents Blue (ammonia plant), Snøhvit Future (electrication) and several other projects in the areas of natural hazards and adaptation to climate change. • We take part in some of the most exciting projects for research and development, such as the Ocean Space Centre and the Life Science Centre. • We participate in a number of projects in the renewable industry, both traditional projects and the new industry developing from need for batteries, hydrogen and CCC. ATTRACTIVE EMPLOYER At Multiconsult, expertise is the foundation of our competi- tive power. Our employees are therefore our most important value creators. Given our employees’ expertise and our ability to bring a variety of competencies together to form attractive deliveries, we are able to undertake the most demanding and complex projects the market has to oer. We have noticed a heightened competition for the most highly skilled personnel. Our aim is to attract and retain the best pro- fessionals in the eld. To do so, we must be one of the industry’s most attractive employers, and oer professional challenges through groundbreaking projects, professional development, as well as participation in innovation and research. We make considerable investments in these areas each year. An attractive employer is also expected to stay at the fore- front of digital innovation. During 2021, we systematised di- Grethe Bergly CEO PROJECT: BORGAFJELLET ELEMENTARY SCHOOL, OS PHOTO: HUNDVEN-CLEMENTS PHOTOGRAPHY Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Letter from CEO 16 MULTICONSULT ANNUAL REPORT 2021 17 HURTIGRUTEMUSEET – NORWEGIAN COASTAL EXPRESS MUSEUM A new building for the venerable MS Finnmarken and a new historical museum appears as a landmark by the seaside in Stokmarknes in Nordland. It is a signal building, it supports the museum's functional needs, as well as being a positive contribution to the local community. The assignment included protected building (NO: verne- bygg) for MS Finnmarken 1956, rebuilding of Trekantbygget, and an extension to this for the preserved section from DS Finnmarken 1912. The solution to preserving the monument of Norwegian coastal history is a building of 3600 squa- re meters that encloses the ship, in a building of steel and glass. The building moves up to 70 mm at the top and connected to an existing building, so flexible solutions had to be developed to intercept the movements. The main challenge was the signicant scale of the facades and the demanding weather conditions. The new Hurtigruten Museum is awarded The European Ste- el Design Award 2021 and Norsk Stålkonstruksjonspris 2021, and mentioned as Norway's tourist attraction no 1, by news- paper Aftenposten. THE SOTRA PROJECT The Sotra project is a new road system, including main road, tunnels, secondary roads, bridges, structures and large in- tersections between Kolltveit, Øygarden municipality and Storavatnet, Bergen municipality. The project, meant to improve travel between Bergen and the island of Sotra on the west coast, includes a 900 m long suspension bridge and 12.5 km of tunnels. Travel time in peak hours is expected to be reduced by up to 20 minutes and will be a great improvement for road users and public transport between Øygarden municipality and Bergen municipality. The Norwegian Public Roads Administration has selected the Sotra Link to design, build and operate the Sotra proje- ct PPP (NO: Rv.555 Sotrasambandet) outside Bergen at the west coast of Norway. Sotra Link includes Macquarie Group Ltd, SK Ecoplant Co. Ltd Webuild S.p.A. Multiconsult is set to deliver design and engineering services as the main designer, except for the suspension bridge. NEW WATER SUPPLY SYSTEM TO THE CITY OF OSLO Oslo Municipality is building a reserve water supply large enough to supply Oslo with clean drinking water. The new water supply will be ready in 2028. The new water source is Holsfjorden in Innlandet county. A tunnel will be built to a new water treatment plant in Oslo, as well as 15 km of lines in tunnels of onward distribution of treated water. The project will include a raw water tunnel between Hols- fjorden in Lier municipality and Oslo, a new water treatment plant at Huseby in Oslo and a tunnel from Huseby to central Oslo in order to transfer clean water to the existing water grid in Oslo. In addition, new water supply tunnels must be built. The construction activities must be fossil-free. Strict requ- irements are set for machines and vehicles, which in all ca- ses are electric or powered by biofuel without palm oil. All blasted masses inside the tunnels at Huseby are loaded with electric loaders, and all drilling rigs for blasting tunnels drill electrically. Multiconsult to provide all engineering works. OCEAN SPACE CENTRE The Ocean Space Centre will be one of the world's most ad- vanced facilities for research and training of the ocean and the opportunities that lie in the ocean space. The centre will become a leading knowledge centre for future ocean space technology. The Ocean Space Centre will be a very important piece for value creation in the maritime industries and for further developing competence in maritime industries. Oce- an Space Centre will be located at Tyholt in Trondheim. One of the centre's most important purposes is to contribute to the green shift in Norway and the world through the de- velopment of the maritime industries locally, nationally and globally. The objectives of the centre are to: • Educate future specialists in ocean space technology. • Ensure that industry and government get access to leading expertise and infrastructure associated with the harvesting and management of our oceans. • Contribute to eective utilisation of national expertise and knowledge through collaboration with Norwegian and foreign institutions and companies. • Actively contribute to increased innovation in ocean space technology. Statsbygg has awarded Multiconsult Norge for the owner’s engineer contract related to the development of the Oce- an Space Centre in Trondheim. LINK Arkitektur will act as subcontractor with responsibility for architectural services. Photo: Kolbjørn Hoseth Larssen Illustration: Sotra LinkIllustration: Oslo kommune Illustration: Statsbygg / Snøhetta FACTS Project: The Hurtigruten Museum Client: Hadsel municipality Location: Stokmarknes, Norway Architects: LINK Arkitektur Engineering services: Multiconsult Period: 2018-2021 Key gures – Gross area 3600 square meters – Environmental aspect - TEK10 FACTS Project: Ocean Space Centre Client: Statsbygg Location: Trondheim, Norway Consulting engineers: Multiconsult, Norconsult, Rambøll Architect: Snøhetta, LINK Arkitektur Period: 2020 - Key gures – Gross area of approx. 52 000 square meters – Estimated cost framework: NOK 7.9 billion FACTS Project: Highway 555 Builder: Norwegian Public Roads Adminstration Client: The Sotra LINK Location: Øygarden and Bergen municipalities Engineering services: Multiconsult Bridge Architect: Selberg Architects Period: 2021 – estimate June 2027 Key gures – 9,4 km new highway – Total cost of NOK 23.1 billion (2022-kroner) FACTS Project: New Water Supply System Oslo Client: Oslo Municipality, VAV Location: Oslo, Norway Engineering: Multiconsult Period: 2017 - estimated 2028 Key gures – 19 km tunnel from Holsfjorden to Huseby Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance 18 19MULTICONSULT ANNUAL REPORT 2021 DIRECTORS’ REPORT 2021 Financial review nextLEVEL Segment information Market Outlook Corporate governance Sustainability and corporate responsibility Risk and risk management Going concern Multiconsult Group net prot Share and shareholder matters 21 25 25 28 29 29 29 33 33 33 1918 PROJECT: THE SCHOOL QUARTER, SKI ILLUSTRATION: LINK ARKITEKTUR Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Directors’ report 20 21MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 NOK million As a % of net operating revenues Amounts in NOK million. except EPS and percentage 2021 2020 Change in NOK 2021 2020 Operating revenues 4 284.7 4 186.2 98.5 113 % 114 % Expenses for sub consultants and disbursements 480.9 525.2 (44.3) 13 % 14 % Net operating revenues 3 803.7 3 660.9 142.8 100 % 100 % Employee benet expenses 2 811.4 2 660.1 151.3 74 % 73 % Other operating expenses 449.5 402.2 47.3 12 % 11 % Depreciation and amortisation 194.0 197.6 (3.7) 5 % 5 % Impairment 0.0 30.0 (30.0) 0 % 1 % Operating prot (EBIT) 348.9 371.0 (22.2) 9 % 10 % Share of prot from associated companies and joint ventures 0.2 (2.3) 2.5 0 % 0 % Financial income 20.4 22.7 (2.3) 1 % 1 % Financial expenses 58.3 62.1 (3.8) 2 % 2 % Net nancial items (37.9) (39.4) 1.5 -1 % -1 % Prot before income tax 311.2 329.4 (18.2) 8 % 9 % Income tax expense 76.5 80.1 (3.6) 2 % 2 % Prot for the period 234.7 249.2 (14.5) 6 % 7 % Attributable to: Owners of Multiconsult ASA 234.7 249.2 (14.5) 6 % 7 % Earnings per share: Basic and diluted 8.67 9.25 (0.59) 0 % 0 % Multiconsult delivered solid protability, good sales and strengthened its market position during the year. Multiconsult holds a strong portfolio of ongoing projects and a solid or- der backlog. The group is well positioned to be a part of the “green shift” that will impact us over the next years. During the year, several new and important contracts have been awarded within “new industry” and electrication, as well as sustainable urban and resi- dential development and school buildings. Looking ahead, with a foundation of highly skil- led workforce and solid client base, Multiconsult is well positioned for long-term protable growth based on sustainable solutions. The board of directors proposes a dividend of NOK 6.00 per share to be paid as ordinary dividend. SOLID PROFITABILITY AND STRONG MARKET POSITION Set out above is the consolidated income statement data for the years 2021 and 2020. PROJECT: THE LERVIG PARK, STAVANGER ILLUSTRATION: LINK ARKITEKTUR CONSOLIDATED INCOME STATEMENT DATA Multiconsult has played a major role in the Norwegian so- ciety for over 110 years. Multiconsult is a people-based or- ganisation of about 3 200 employees. It is the daily work of our employees, and their ability to solve complex projects that adds value to our clients through future oriented and sustainable solutions. In 2020 and 2021 Multiconsult de- livered solid protability, despite the turmoil caused by the Covid-19 pandemic. FINANCIAL REVIEW Multiconsult group (“Multiconsult” or “the group”) comprises Multiconsult ASA (“parent company” or “company”) and all subsidiaries and associated companies. The nancial state- ments have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, as well as in the Norwegian accounting legislation. All amo- unts in brackets are comparative gures for 2020 unless ot- herwise specically stated. In the view of the board of directors, the consolidated sta- tement of prot or loss, the statements of comprehensive income, changes in equity and statement of cash flow, the statement of nancial position and the accompanying notes provide a true and fair view of the nancial position of the Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Directors’ report 22 23MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Reporting EBITA from 2022: Multiconsult intend to change its main operational protability gure from EBIT to EBITA from 2022, at group level. This is in line with industry sector practice and is a relevant measure for operational perfor- mance. Income/loss from associated companies and joint ventures Results from associated companies and joint ventures was NOK 0.2 million in 2021 (negative NOK 2.3 million). This is mainly related to our associated company Norplan Tanza- nia. For more information, see note 17 to the consolidated group accounts. Financial items Net nancial items amounted to an expense of NOK 37.9 million (expense of NOK 39.4 million). Interest expenses were impacted by IFRS 16. When adjusting for this eect, in- terest expenses was NOK 4.2 million compared to NOK 5.9 million in 2020. Net currency eects for 2021 amounted to an expense of NOK 0.9 million, compared with an income of NOK 3.8 million in 2020. Income taxes Tax expense for the year amounted to NOK 76.5 million, compared with NOK 80.1 million in 2020. The main driver for the lower tax expense was reduced prot before tax, for more information, see note 11 to the consolidated group accounts. Prot and loss for the year Multiconsult’s prot before income taxes was NOK 311.2 mil- lion (NOK 329.4 million). Prot for the year was NOK 234.7 million, compared with NOK 249.2 million in 2020. KEY PERFORMANCE DRIVERS 2021 Change in capacity is mainly driven by net recruitment and M&A activity. In 2021 the increase in capacity is mainly rela- ted to the acquisition of Erichsen & Horgen AS, including its subsidiary Ingeniørrmaet Malnes og Endresen AS. In addi- tion, Nordland Teknikk AS was acquired. Billing ratio is hours recorded on billable projects as a per- centage of total hours worked (including administrative sta) and employer-paid absence, and has a direct impact on revenues and operating prot (EBIT and EBITA). In 2021, the billing ratio decreased by 0.5 percentage points compa- red to 2020. Billing rate is the average rate that Multiconsult charges per hour to the group’s customers and has a signicant impact on revenues and operating prot (EBIT and EBITA). In 2021 higher on average billing rates impacted net operating re- venues positively. Net project write-downs represent losses or gains in pre- viously recorded revenues, and may be caused by several factors, including project deliveries not according to agre- ements with customers or project estimates that need to be adjusted. Multiconsult’s expected normal level of net project write-downs is 1-2 per cent of net operating revenues. In 2020, temporary Covid-19 tax reliefs from governments reduced the employee benet expense by approximate- ly NOK 14.3 million and extraordinary bonus to employees increased the employee benet expense by approximately NOK 25 million. Calendar eect is the eect of the normal variation in capa- city between two comparable periods due to dierent num- ber of working days in the periods. It is a measure of capacity for revenue generation and has a direct impact on revenues and EBIT. When comparing nancial performance in dierent periods, it is important to be aware of the number of working days in the periods compared. In 2021 there was, on avera- ge, one less working day than in 2020. This had an estimated negative impact of NOK 11 million on net operating revenues and EBIT for the group when comparing the periods. STATEMENT OF COMPREHENSIVE INCOME Statement of changes in equity Prot for the year was NOK 234.7 million down from NOK 249.2 million for the year ended 31 December 2020. Other comprehensive income recognised against equity was ne- gative NOK 13.6 million (NOK 12.8 million), mainly related to currency translation dierences in 2021. As a result of this, total comprehensive income was NOK 221.1 million (NOK 262.0 million). FINANCIAL POSITION, FINANCING AND LIQUIDITY Assets Total non-current assets amounted to NOK 1 834.4 million which is an increase from NOK 1 473.0 million for the year ended 31 December 2020. The increase was mainly due to an increase in goodwill of NOK 397.1 million related to the acquisition of Erichsen & Horgen AS and Nordland Teknikk AS. Total current assets amounted to NOK 1 198.5 million (NOK 1 245.2 million). The decrease was mainly due to a lower cash OPERATING REVENUES BY BUSINESS AREA Amounts in MNOK !"#$ %#$ &"#$ !"#$%&'()%+$#,#)-# '())+(, -./0 ,())+(, -.1#,23( 43 1,5 438 0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 2020 Mobility & Transportation Renewable Energy Buildings & Properties IndustryWater & Environment 2021 1 825 1 238 357 497 1 783 1 157 328 318 531 group as of 31 December 2021, and its nancial performance and its cash flows for the year then ended. CONSOLIDATED STATEMENT OF INCOME AND COMPRE- HENSIVE INCOME Revenues Consolidated operating revenues in 2021 amounted to NOK 4 284.7 million (NOK 4 186.2 million). Net operating revenu- es, consisting of operating revenues less project expenses (including sub consultants), amounted to NOK 3 803.7 mil- lion (NOK 3 660.9 million). The increase in net operating re- venues is mainly an eect from the acquisition of Erichsen & Horgen group and net recruitment. Adjusted for acquisitions organic growth in net operating revenues was 1.1 per cent. Billing ratio came in at 70.4 per cent, a reduction of 0.5 pp compared to 2020, and contributed negatively to net ope- rating revenues. Employee and other operating expenses Operating expenses excluding depreciation and amorti- sation came to NOK 3 260.9 million (NOK 3 062.3 million). Operating expenses consist mainly of employee benet expenses and other operating expenses. Operating expen- ses increased by 6.5 per cent driven by higher employee be- net expenses due to added employees from acquisition, net recruitment and ordinary salary adjustment. In the compa- rable period of 2020, there was a cost-reducing one-time eect on the employee benet expenses related to Covid-19 reliefs from governments by approximately NOK 14.3 mil- lion. Employee benet expenses increased by 5.7 per cent compared to 2020. Other operating expenses increased by 11.8 per cent to NOK 449.5 million (402.2), partly explained by operating expenses from acquired companies and by hig- her IT cost in general. Earnings before interest and taxes (EBIT) Multiconsult’s operating prot (EBIT) for the year was NOK 348.9 million (NOK 371.0 million), reflecting an EBIT margin of 9.2 per cent (10.1). The EBIT in the year 2020 was impac- ted by an impairment charge of NOK 30.0 million. Earnings before interest, taxes and amortisation (EBITA) Multiconsult’s operating prot (EBITA) for the year was NOK 350.5 million (NOK 371.0 million), reflecting an EBIT margin of 9.2 per cent (10.1). Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Directors’ report 24 25MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 and Viken, the Sotra infrastructure project, Construction City (LINK Arkitektur) and Museum of the Viking Age. Among new contracts awarded internationally was the technical support for Solidarity Transport Hub in Poland, Get FiT Zambia and a new emergency hospital in southern Sweden (LINK Arki- tektur). For the ve business areas Multiconsult operates in the ge- neral market conditions were good in 2021, both in Norway and in Multiconsult’s international markets. Order intake in 2021 amounted to NOK 4 352 million (NOK 4 684 million), a decrease of 7.1 per cent compared to 2020. There was an increase in order intake within Industry and Water & Environ- ment while there was decrease in the order intake in busi- ness areas Buildings & Properties, Mobility & Transportation and Renewable Energy. In 2021 the building and property market has been good, but there have been few large projects in the market. The ongo- ing contract on the Gaustad (nye Rikshospitalet) is expected to create further sales into 2022. The markets for LINK Ar- kitektur in Norway was impacted by few large new opportu- nities, while the architects markets in Sweden and Denmark has generally been better in 2021 than in 2020. The Norwegian market for transportation remained at a good level in 2021. The trend with large projects and EPC-contracts as the preferred execution model continues. The cancellation of E6 Moelv-Roterud had a negative eect on sales. The water and environment market had good activity level in 2021. In business area Water & Environment the sales in 2021 were largely towards small-and medium sized proje- cts, in addition to expanded work on Oslo City Water Supply. The market situation is expected to be generally good going forward. The industry market experienced a substantial increase in potential projects in land-based aquaculture and in projects in the new industry sectors, such as battery manufacturing, hydrogen manufacturing, and hydrogen derivatives, e.g. ammonia, methanol and other synthetic fuels. Important new projects were started giving good outlook for this sector. The renewable energy market in Norway declined through the year for hydropower and onshore wind, but steadily in- creasing for hydrology and flood protection, transmission and distribution, oshore wind, solar and smart grid soluti- ons. The international target market for the business area Renewable Energy has been stable, but the group experien- ced delay in new contract signings due to Covid-19 travel re- and cash equivalent position and a reduced in work in pro- gress oset by higher outstanding trade receivables compa- red to year-end 2020. Equity and liabilities Total shareholders’ equity was NOK 850.1 million (NOK 773.6 million) on 31 December 2021, corresponding to an equity ratio of 28.0 per cent (28.5 per cent). The change in equity is mainly impacted by prot for the year, dividend paid and increase in share capital. In connection with the closing of the acquisition of Erichsen & Horgen AS, Multiconsult issued 460 129 shares, at a share price of NOK 183.35, represen- ting an increase of share capital of NOK 0.2 million and share premium of NOK 84.0 million. Adjusted for the IFRS 16 eect, the equity ratio was 40.3 per cent (43.5 per cent). Total liabilities were NOK 2 182.8 million (NOK 1 944.6 milli- on). The increase was mainly due to an increase in non-cur- rent interest-bearing liabilities and public duties payables. Total interest-bearing liabilities amounted to NOK 180.0 million, an increase of NOK 180.0 million compared to the year ended 31 December 2020. Liquidity and capital resources Multiconsult’s sources of liquidity are cash on hand, revenu- es generated from our operations and available loans and credit facilities. Principal needs for liquidity are employee expense, cost of sub-contractors, other operating expenses including costs of oce and IT, working capital items and ca- pital expenditures, debt service, and funds to pay dividend and acquisitions. The group held cash and cash equivalents of NOK 156.2 mil- lion at the end of 2021. At the end of 2021 Multiconsult ASA has an overdraft loan facility of NOK 320.0 million, which is part of a cash pool. The cash pool is a multi-currency and multi-account sys- tem including the legal entities Multiconsult Norge AS, LINK Arkitektur AS, LINK Arkitektur AB, LINK Arkitektur A/S, Iterio AB and Multiconsult UK Limited, where Multiconsult ASA is the owner of the cash pool’s top account and the debtor of the facility. In addition, Multiconsult ASA holds a 3-year re- volving credit facility of NOK 450.0 million, plus accordion option of NOK 150.0 million until March 2023. The nancial covenants requirement is that net interest bearing liabilities (excluding restricted cash) of the group shall not exceed 3.0 times last twelve months EBITDA for the group (NIBD/EBIT- DA) measured excluding IFRS 16 eects, and an equity ratio excluding IFRS 16 eects of at least 25 per cent, reported quarterly. The company is in compliance with its nancial co- venants as of 31 December 2021. strictions. The project portfolio is, however, at a satisfactory level. nextLEVEL Multiconsult’s protability improvement programme next- LEVEL was introduced in November 2019 and was one of our key measures to improve performance and protability. The protability improvement programme was completed in 2021, and the nal report was made in the rst quarter of 2021. NextLEVEL had a target of NOK 150 million in annual pro- tability improvement to be committed over a period of 18 months and realised over the next 2-3 years. By the end of April 2021 committed annual eect were estimated to ap- proximately NOK 174 million. Targets under the programme have been met both within Cost Out and Operations. Cost Out constitute oce & IT, travel & professional services and other. The eects come from revised contract terms, re- duced procurement cost and a number of other cost redu- ction measure that have a positive eect on other operating expenditure for the group. Committed annual eect on Cost Out was estimated to approximately NOK 94 million. Opera- tions constitute organisational adjustments, improved ope- rational eciency and reduced impairments. Operational improvements have been quantied, implemented and mo- nitored throughout the period. Committed annual eect on Operations was estimated to approximately NOK 80 million. Reported one-o nextLEVEL restructuring costs related to the programme accumulates to NOK 34.0 million. SEGMENT INFORMATION The group’s activities are organised in ve reporting seg- ments: Region Oslo, Region Norway, Energy, International, and a segment for the subgroup LINK Arkitektur. Segment revenues and expenses reflect the geographical base of employees, which does not necessarily coincide with the location where the projects have been executed. Overhead expenses such as administrative services, oce rent and depreciation are allocated to individual segments, however certain corporate cost and group-wide cost are not alloca- ted to the segments. REGION OSLO This segment oers services in all ve business areas and comprises the Oslo region, including Lillehammer, Large Projects in Norway and parts of Erichsen & Horgen group. CASH FLOW Cash flow from operations Net cash flow from operating activities was positive NOK 458.6 million (positive NOK 667.7 million). Net cash flow from operating activities is partially aected by change in working capital. Cash flow from investments Net cash flow used in investment activities was NOK 364.0 million (NOK 27.8 million), mainly related to the acquisition of Erichsen & Horgen AS, including its subsidiary Ingeniørr- maet Malnes og Endresen AS. Cash flow from nancing Net cash flow from nancing activities amounted to nega- tive NOK 212.1 million (negative NOK 437.5 million) which is mainly aected by drawdown on the revolving credit facility of NOK 180 million, paid dividend and IFRS 16 calculated in- stalments on lease liabilities. Order backlog Multiconsult group operates in ve dierent business are- as; Buildings & Properties, Mobility & Transportation, Water & Environment, Renewable Energy and Industry. The order backlog at the end of 2021 remains solid at NOK 3 260 milli- on (NOK 3 327 million), a decrease of 2.0 per cent compared with the year-end 2020. The order backlog and order intake from the acquired company Erichsen & Horgen group is not included in the reported gures. Business areas Buildings & Properties and Mobility & Trans- portation holds the largest proportion of the order backlog, with a total share of 72 per cent at the end of the period. The two business areas Mobility & Transportation and Industry have seen an increase in the order backlog compared to the same period last year. Business area Industry hold an order backlog of NOK 246 million, a 46 per cent higher order backlog compared to the same period last year. The order backlog in the three remaining business areas is reduced compared to the same period last year. The size and timing of execution of the order backlog varies signicantly between the business areas and locations. Order backlog does not reflect the total expected volume related to frame agreements and includes only call-os that have been signed under these agreements. Order intake Among signicant sales or contracts in Norway in 2021 includes a large add-on to a contract for new water supply to Oslo for Oslo City Water and Sewerage Works Agency, an extensive call-o for Fornebubanen for Municipality of Oslo Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Directors’ report 26 27MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Region Oslo accounted for 32.9 per cent (32.1) of group net operating revenues in 2021. Net operating revenues for the year came in at NOK 1 250.6 million (NOK 1 175.7 million) an increase of 6.4 per cent primarily as contribution from acquisitions. The growth was oset by a lower billing ratio of 71.9 per cent (73.4). Operating expenses came in 11.5 per cent higher than in the same period of 2020. Employee benet expenses was NOK 855.4 million (NOK 766.9 million), an increase of 11.5 per cent mainly driven by the inclusion of employees from Erichsen & Horgen and regular salary adjustment. Other operating expenses increased by 11.5 per cent. Business unit Transportation has experienced a challenging year with a reduced EBIT of NOK 30.2 million compared to the full year 2020. The lower protability is partly due to ca- ncelation of E6 Moelven - Roterud, as well as a lower general activity level. EBIT was NOK 150.4 million in the period (NOK 186.1 million) reflecting an EBIT margin of 12.0 per cent in 2021. Order intake in the period decreased by 13.5 per cent. The- re was a signicant increase for the business area Industry, all other business areas had a reduction compared to same period in 2020. Order backlog for the segment at year-end 2021 was NOK 1 186 million. Approximately 70 per cent of the total or- der backlog for the segment is held by the business areas Buildings & Properties and Mobility & Transportation. Order backlog decreased by 5.6 per cent compared to year-end 2020. REGION NORWAY This segment oers services in all ve business areas and comprises all oces outside the Oslo region, except Erichsen & Horgen Lillehammer, with presence in all larger cities and several other locations in Norway. Region Norway is the lar- gest segment, accounting for 39.8 per cent (39.6) of group net operating revenues in 2021. Net operating revenues for the year came in at NOK 1 512.1 million (NOK 1 449.8 million) an increase of 4.3 per cent compared to last year. The increase is mainly due to higher average billing rates, net recruitment, and contribution from the acquired company Erichsen & Horgen. Organic growth in the period was 2.6 per cent. The growth in net operating revenues was oset by a lower billing ratio of 69.6 per cent (69.9). Operating expenses increased by 6.1 per cent to NOK 1 250.0 million (NOK 1 178.6 million). Employee benet expen- ses came in at NOK 993.6 million (944.6), an increase of 5.2 per cent in line with ordinary salary adjustment and the inclusion of employees from Erichsen & Horgen to this seg- ment. Other operating expenses increased by 9.6 per cent. EBIT was NOK 173.2 million (NOK 184.0 million) reflecting an EBIT margin of 11.5 per cent in 2021. Order intake increased by 6.2 per cent compared to the same period in 2020. There was an increase in the business areas Industry, Renewable Energy and Water & Environment. Order backlog for the segment at year-end was NOK 629.7 million. The order backlog is NOK 32 million higher compared to the end of 2020, an increase by 5.4 per cent. Compared to the same period last year the order backlog increased in all business areas, except in Buildings & Properties. ENERGY The segment oers national and international services in the business area Renewable Energy with some activity in Water & Environment and include the subsidiary Multiconsult UK. Energy accounted for 6.2 (6.8) per cent of group net opera- ting revenues in 2021. Net operating revenues for the segment came in at NOK 233.9 million (NOK 248.8 million) a decrease of 6.0 per cent compared to last year. A net reduction in manning level and lower average billing rates for the segment is the main dri- vers for the negative eect on net operating revenue. Operating expenses came in at NOK 225.9 million (NOK 240.3 million), 6.0 per cent lower than in the same period last year. Employee benet expenses was reduced by 6.0 per cent in line with the reduction in manning level. Other opera- ting expenses decreased by 6.0 per cent, supported by the reduced head count and reduced operating costs. EBIT was NOK 6.8 million (NOK 6.8 million) reflecting an EBIT margin of 2.9 per cent in 2021. Order intake during the year 2021 decreased by 36.4 per cent compared to last year. PROJECT: TORVBRÅTEN SCHOOL, ASKER PHOTO: HUNDVEN-CLEMENTS PHOTOGRAPHY Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Directors’ report 28 29MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Order backlog was at NOK 235.6 million at the end of the year. The order backlog decreased by 20.1 per cent compa- red to the same period 2020. LINK ARKITEKTUR LINK Arkitektur is one of the leading architect rms in Scan- dinavia, with presence in major cities and regions in Norway, Sweden and Denmark. LINK Arkitektur accounted for 14.8 per cent of the group’s net operating revenues in 2021. Net operating revenues came in at NOK 564.5 million (NOK 561.6 million) an increase of 0.5 per cent compared to 2020. Billing ratio increased by 0.3pp and contributes to the growth in net operating revenues. Higher activity and billable hours compared to last year had a positive eect on net operating revenue. Lower on average billing rates for the segment have negative eect on net operating revenue compared with last year. Operating expenses increased by 2.8 per cent in the period. Employee benet expenses increased by 2.2 per cent in line with ordinary salary and activity level for the workforce. Oth- er operating expenses came in at NOK 79.7 million an incre- ase of 5.9 per cent. Operating expenses is partially impacted by estimated one-o restructuring cost in LINK Sweden of SEK 5.6 million. EBIT was NOK 19.0 million (NOK 25.7 million) reflecting an EBIT margin of 3.4 per cent in 2021. Order intake during the year 2021 decreased by 15.3 per cent, to NOK 631.3 million, compared to 2020. Order backlog for the segment was at NOK 595.1 million at year-end. The order backlog decreased by 6.7 per cent compared to the end of 2020. INTERNATIONAL The international segment comprises the subsidiaries Multi- consult Polska and Iterio AB. Multiconsult Polska oers ser- vices in the transportation and infrastructure, environment and natural resources, and oil and gas sectors. Iterio AB pri- marily oers services in the transportation sector within geo- technical, environmental and trac engineering. The interna- tional segment accounted for 6.4 per cent (6.6) of the group’s net operating revenues in 2021. Net operating revenues for the year came in at NOK 243.3 million (NOK 242.5 million) an increase of 0.3 per cent driven by a net increase in manning level. The growth was oset by The maintenance lag in water- and wastewater infrastru- cture is signicant, which together with a growing market for climate change adoptions and environmental concerns, suggests a good outlook for the Water & Environment busi - ness area. The renewable energy market will be an important market in Norway and internationally for many decades to come. Mul - ticonsult is well positioned both to the mature part of this market and the new renewables including the hybridisation between the various renewable power sources. The continued support and funding of public sector projects, as well as the timing of such projects, is of key importance to our business. Potential delays or cancellations may adver - sely impact our business. The Covid-19 situation, including the transition into a post-pandemic situation, is still causing uncertainty. In the short term, this may also impact short-term sick-leave, which has been experienced in recent months. The direct and indirect potential impact of the ongoing con - flict in Ukraine is currently not possible to assess, but has currently had limited or no impact on Multiconsult. There is a higher than normal short-term risk of potential delays in certain projects, mainly caused by increased cost in the building- and construction sector. The recent acquisitions, strong portfolio of ongoing projects and a solid order backlog provides Multiconsult with an over - all good foundation going into 2022. CORPORATE GOVERNANCE Good corporate governance provides the foundation for long-term value creation, to the benet of shareholders, employees and other stakeholders. The board of directors of Multiconsult has established a set of governance principles to ensure a clear division of roles between the board of directors, the executive management team and the shareholders. The principles are based on the Norwegian Code of Practice for Corporate Governance. Multiconsult is subject to annual corporate governance re - porting requirements under section 3-3b of the Norwegian Accounting Act and the Norwegian Code of Practice for Cor - porate Governance, cf. section 7 on the continuing obligations of stock exchange listed companies. The Accounting Act may lower billing ratio and a currency translation eect of on the PLN/NOK for the period. Operating expenses came in at NOK 203.9 million (NOK 202.4 million), an increase of 0.8 per cent. Employee benet expenses increased by 1.3 per cent. Currency translation ef- fects reduced the expense increase when measured in NOK. Other operating expenses decreased by 1.9 per cent on lower expenditures in general measured in NOK. EBIT was NOK 23.7 million (NOK 24.8 million) reflecting an EBIT margin of 9.8 per cent in 2021. Order intake came in at NOK 493.1 million for the period, an increase of 3.9 per cent compared to the year 2020. Order backlog for the segment was at NOK 699.5 million at year-end. The order backlog increased by 19.2 per cent compared to the same period last year. More than 90 per cent of the total order backlog for the segment is held by the busi- ness area Mobility & Transportation. MARKET OUTLOOK These forward-looking statements reflect current views about future events and are, by their nature, subject to sig - nicant risks and uncertainties because they relate to events and depend on circumstances in the future. Public sector investment, conrmed by the National Budget 2021 is driving a solid outlook for transportation within road and rail. However, cost increases in the sector may aect de - mand for larger projects negatively, mainly in the short term. For Building & Properties, the market is expected to stabilise at current level for 2022 with a shift towards transformation, rehabilitation, and modernisation of existing buildings with sustainable solutions. The commercial oce and shopping market will change as new ways of working and shopping emerge in the wake of the Covid-19 pandemic. For Industry the outlook is positive, and several large in - dustry projects are in their early planning stages. Increa- sed demand from the industry sector related to the energy transformation, clean energy, and sustainable projects to reduce their CO2 emission. Ongoing initiatives is led by the industry itself and the political environment and is supported by estimates published by Statistics Norway (NO: Statistisk sentralbyrå) related to investments in land-based industry. This is expected to generate opportunities for Multiconsult going forward. be found (in Norwegian) at www.lovdata.no. The Norwegian Code of Practice for Corporate Governance, which was last revised on 14 October 2021, may be found at www.nues.no. The Annual Statement on Corporate governance for 2021 has been approved by the board of directors and can be found on page 37 in this annual report. SUSTAINABILITY AND CORPORATE RESPONSIBILITY Corporate responsibility is about running the business in a re- sponsible and sustainable manner over time, and in a way that contributes to a positive, trust-based relationship between Multiconsult, the group’s stakeholders and society as a whole. Commencing in the 2021 annual and sustainability report in Multiconsult will be one integrated report with overview of pri - orities, measurements, and targets within environment, social and governance ("ESG"). Multiconsult will be reporting on the Global Reporting Initiative (GRI) 2021 standards. By applying the GRI standards to the reporting, information is made avai - lable to all stakeholders in a transparent way, consistent over time. The section Sustainability and corporate responsibility in this annual report and in Multiconsult cover all areas of en - vironmental, social and governance (ESG) reporting. Included in the annual report is the section Sustainability and corporate responsibility. Part of this section is an integral part of the directors’ report - “Employees and the organisation”. The rest of the Sustainability and corporate responsibility se - ction is a report from the executive management team. The Sustainability and Corporate responsibility section for 2021 is included in this annual report on page 50, while the in - tegral part of the directors’ report, with the section “Employe- es and the organisation” starts on page 61. RISK AND RISK MANAGEMENT Through its business activities, Multiconsult manages a con- siderable contract portfolio of engineering, architectural and advisory services that are exposed to a wide variety of risk factors. The group has established a systematic approach to risk management, in particular project risks. Other operational risks are related to Health Safety and Environment (HSE) and are mitigated by contingency plans, continuous training and management focus in the organisation. COVID-19 RISK Extraordinary risk factor related to the global outbreak of co- ronavirus that has been characterised as a pandemic by the Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Directors’ report PROJECT: THE MUNCH MUSEUM PHOTO: EINAR ASKLAKSEN 30 31 MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 World Health Organization (WHO). Multiconsult has been taking steps to secure the group operationally, strategically and nancially, including that Multiconsult has provided the possibility for our employees to work from home. The group has an IT infrastructure that has enabled our employees to work eciently from home. The Covid-19 situation, including the transition into a post-pandemic situation, is still causing uncertainty for the industry and our markets going forward. In the short term, this may also impact short-term sick-leave, which has been experienced in recent months. PROJECT RISK The risk of disagreements and legal disputes related to the possible cost of delays and project errors is al - ways present in the engineering consultancy business. Multiconsult has developed internal procedures and competences to reduce risk exposure for legal disputes. In general, Multiconsult, and the Norwegian engineering consultancy industry, has experienced an increase in the number and size of potential legal disputes, which potentially may, in adverse circumstances, have negative nancial impact. Multiconsult has insurance policies and routines for following up such cases. When a business segment is represented out of Multiconsult Norge AS it will have customary insurance coverage for project liabi - lity up to a certain level and subject to certain conditions. Business segments represented through other subsidi - aries have local insurance coverage for project liability up to a certain level and subject to certain conditions. Insurance coverage for project liability in Multiconsult Norge AS is mainly based on collective policies for engi - neering consultancies. This insurance takes the form of standard policies for engineering projects, with an excess of NOK 300 000 per claim and normally with a maximum coverage of up to 150 times the Norwegian national insu - rance base rate (G) – about NOK 16 million, which is the standard limitation of liability in Multiconsult’s contracts. Uninsured liability is by agreement normally limited to 60 G about NOK 6.3 million, with exceptions and higher agre - ed limitations for such liability in some larger projects. There may however be signicant project- and other operational risks where limitations of liability do not apply, that are not covered by the mentioned insurances and/or where the insurance coverage is insucient to cover the risk. In some projects special provisions regarding liability apply or limitations of liability do not apply. This increases Multiconsult’s possible liability and risk. In cases of gross negligence or wilful misconduct limitations on liability as a main rule do not apply, and insurance coverage may be reduced. Furthermore, Multiconsult has entered into multiple project partnerships with joint and several liability or joint and proportional liability that may in under particular circumstances increase risk. In the latter cases Multiconsult’s proportional liability is normally based on the share of the turnover in the project group. The men - tioned risks may, in some adverse circumstances, have a signicant negative impact on the nancial performance of the group. Further details are provided in note 20 to the consolidated group accounts. In connection with a project completed several years ago, one of Multiconsult Norge AS’ customers has taken legal action to seek compensation for losses amounting to approximately NOK 90 million. Multiconsult considers the claim without merit and has defended itself against the lawsuit. In the fourth quarter 2021, Multiconsult won the case fully in the court of rst instance, but the coun - terparty has led an appeal to the Court of Appeals. As of publishing of this report no date has been set for the hearing in the Court of Appeals. There is a higher than normal short-term risk of potential delays in certain projects, mainly caused by increased cost in the building- and construction sector. CREDIT RISK Credit risk arises primarily from transactions with customers and from bank deposits. The group’s losses on accounts re- ceivable because customers have been unable to meet their obligations have been modest for a number of years. Trade receivables represent about 24.1 per cent (23.1 per cent) of the group’s total assets. Multiconsult Norge AS has routines for assessing the creditworthiness of the customer, and the possible need for bank guarantees or other risk-reducing measures. New customers are subject to credit assessment and approval before credit is granted. Responsibility for cre- dit management is centralised, and routines are incorpo- rated in the quality assurance system. Similar routines for assessing the creditworthiness of the customer is present in other subsidiaries in the group. As approximately half of the group's revenues in 2021 and 2020 relates to public sector, customers credit risk is considered limited. CURRENCY RISK Several business units carry out a small number of proje- cts in other currencies than their domestic currency. For the group, the relative importance of these transactions is Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Directors’ report 32 33MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 of traded volumes were on average 42 075 shares per day compared to 19 718 shares in 2020. The 10 largest sharehol- ders accounted for 55.8 per cent (62.1), and the 20 largest shareholders accounted for 64.4 per cent of the share capi- tal. Stiftelsen Multiconsult was the largest shareholder, hol- ding 21.9 per cent (21.7) of the shares on 31 December 2021. The share capital of Multiconsult ASA is NOK 13 715 261,50 divided into 27 430 523 shares, each with a nominal value of NOK 0.50. Multiconsult ASA has only one share class, and all shares have equal rights. The articles of association sta- tes under § 8 that no shareholder may at general meetings vote for more than 25 per cent of the shares issued by the company. The shares are registered in the Norwegian Cen- tral Securities Depository (VPS). Multiconsult ASA's registrar is with DNB Markets. The shares carry the securities number ISIN: NO0010734338. Multiconsult ASA’s legal entity form is Public limited liability company (NO: Allmennaksjeselskap) and LEI (Legal Entity Identier) code of reporting entity is: 5967007LIEEXZXG9GO07. DIVIDENDS Multiconsult has an ambition to distribute annual dividends of at least 50 per cent of its net prot. When deciding the annual dividend level the board of directors will take into consideration expected future cash flow, capital expenditure plans, nancing requirements and appropriate nancial fle- xibility. The annual accounts have been prepared on a going con- cern assumption. The board of directors has conrmed that this assumption can be made on the basis of the group’s strategy, outlook and budgets. MULTICONSULT GROUP NET PROFIT The annual nancial statements for Multiconsult are prepa- red in accordance with the international nancial reporting standards (IFRS). The group made a prot for the year ended 31 December 2021 of NOK 234.7 million, compared with NOK 249.2 million in 2020. Net prot is allocated to other equity. SHARE AND SHAREHOLDER MATTERS The company’s shares are listed on Oslo Børs (Oslo Stock Exchange) under the ticker symbol MULTI. Multiconsult aims to generate competitive returns to its shareholders, and the company have paid out annual dividend to its shareholders since the IPO in 2015. As of 31 December 2021, Multiconsult had 3 582 (2 470) shareholders from 43 (31) dierent co- untries across the world. Turnover of shares is a measure larger on the revenue side than on the cost side. Where a net currency exposure is present, the group may enter into foreign exchange forward contracts to mitigate the exposu- re. In addition, for certain projects hedging in form of foreign exchange forward contracts can be entered into to mitigate the currency risk in the project. Currency risk is regarded as modest, with some currency translation risk related to the reporting segment International. Therefore, currency hed- ging contracts have only rarely been entered. The functional currency of the parent company, and the largest subsidiary Multiconsult Norge AS, is Norwegian kroner (NOK). INTEREST RATE RISK Multiconsult’s main sources of nancing is at floating in- terest rates. The loan-portfolio includes an overdraft loan facility of NOK 320.0 million, and a 3-year revolving credit facility (RCF) of NOK 450.0 million, plus accordion option of NOK 150.0 million until March 2023. On 31 December 2021, Multiconsult ASA has drawn NOK 180.0 million under the re- volving credit facility. Interest swaps have entered to ensure that over time approximately 50 per cent of the expected interest cost is at xed rates. LIQUIDITY RISK The group’s business model is mainly based on consultancy fee revenues generated from own employees. Multiconsult continuously monitors its liquidity, and estimates expected liquidity developments with regular short- and long-term forecasting and annual budgets. The group’s liquidity risk exposure is limited, but with signicant short-term and se- asonal variation that requires close monitoring. To mitigate liquidity risk and to ensure appropriate nancial flexibility, Multiconsult ASA has an overdraft facility of NOK 320.0 mil- lion were Multiconsult ASA is the owner of the cash pool’s top account and the debtor of the facility. The cash pool includes certain subsidiaries and most bank accounts for the group. When subsidiaries in the cash pool draw on/deposit in the group cash pool, this is presented as a receivable/liability in Multiconsult ASA’s balance sheet. ACCOUNTING ESTIMATES RISK Estimates are made for revenue recognition related to hours, costs and progress in projects. The main uncertainty relating to the assessment of contract revenue is associa- ted with the recoverable amount of overruns, change orders, claims and incentives. Although the group has considerable experience in project management and measurement, there is an inherent risk associated with such estimates. All esti- mates are reviewed on a regular basis. Changes in estima- tes are recognised in the period in which the change occur. For more information see note 2B to the consolidated group accounts. EMPLOYEES AND EXPERTISE RISK Multiconsult is a people-based organisation of about 3 200 employees where success is closely associated with access to relevant expertise that can solve complex projects that adds value for our clients. Increased turnover among em- ployees, an unusually tight labour market for engineers and architects, and general access to relevant expertise are risk factors. Multiconsult has a strong brand and is repeatedly given high rankings as an attractive workplace among stu- dents and engineers, and overall well positioned to recruit employees with the relevant expertise. For more information, see Employees and the organisation in the section Sustaina- bility and Corporate responsibility section this report. ENVIRONMENTAL AND CLIMATE RISK Climate change provides both risks and opportunities for Multiconsult. The threats and opportunities for climate risk is addressed in line with other threats and opportunities, by executive management team informing the board of dire- ctors. Transition risk and physical risk is evaluated separa- tely. Physical risk is evaluated to be low, as the group does not own substantial assets vulnerable to acute or chronic physical risk. HSE procedures are in place to handle clima- te induced weather events and the group and subsidiaries’ insurance is considered to cover all climate risks in a suci- ent way. The largest transitional risk is linked to market risks and opportunities. The market risk is considered low for both short-, medium- and long term while short-, medium- and long-term market opportunities are considered to be sub- stantial, and a key market driver, in the strategy process. As the construction industry is a large contributor to climate emissions, the sector is under the scrutiny of policy makers. For more information, see Reporting according to Task Force on Climate-related Financial Disclosure, TCFD in the section Sustainability and Corporate responsibility section this re- port. UKRAINE The direct and indirect potential impact of the ongoing con- flict in Ukraine is currently not possible to assess, but has currently had limited or no impact on Multiconsult. GOING CONCERN Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Directors’ report PROJECT: THE ZEB LABORATORY NTNU, TRONDHEIM PHOTO: NICOLA LOLLI 34 35 MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 The annual general meeting on 19 April 2021 resolved pay- ment of ordinary dividend related to the 2020 nancial year of NOK 215.8 million to be paid to shareholders registered at this date. This equalled NOK 8.00 per share. The dividend was paid on 28 April 2021. The board of directors proposes a dividend of NOK 6.00 per share to be paid as ordinary dividend related to the 2021 - nancial year. TOTAL SHAREHOLDER RETURN Multiconsult’s total shareholder return in 2021 was 26.5 per cent. Total shareholder return is the return from the share price in addition to the dividend, which is assumed rein- vested on the ex-date. It is calculated from the perspective of an investment in NOK. SHARE REPURCHASE PROGRAMME The annual general meeting held on 19 April 2021 resolved to authorise the board of directors to acquire own shares with a maximum aggregate nominal value of NOK 1 348 520, equal to 2 697 040 shares. The maximum and the minimum amo- unts, which may be paid per share, are NOK 500 and NOK 5, respectively. The authorisation is valid until the annual ge- neral meeting in 2022, however, no longer than to 30 June 2022. INSURANCE COVERING BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT TEAM Multiconsult ASA hold insurances covering the board mem- bers’, CEO’s and executive management team members’ po- tential liabilities towards the company and third parties. The board and CEO of Multiconsult ASA – Oslo, 16 March 2022 Bård Mikkelsen Chair of the board Grethe Bergly CEO Hanne Rønneberg Director Rikard Appelgren Director Torben Wedervang Director Gunnar Vatnar Director Sverre Hurum Director Tove Raanes Director Karine Gjersø Director Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Directors’ report 36 37MULTICONSULT ANNUAL REPORT 2021 ANNUAL STATEMENT ON CORPORATE GOVERNANCE 1. Implementation and reporting on corporate governance 2. Business 3. Equity and dividends 4. Equal treatment of shareholders and transactions with related parties 5. Shares and negotiability 6. General meetings 7. Nomination committee 8. Board of directors: composition and independence 9. The work of the board of directors 10. Risk management and internal control 11. Remuneration of the board of directors 12. Remuneration of executive personnel 13. Information and communication 14. Takeovers 15. Auditor Denitions and disclaimers Alternative performance measures (APMs) 38 38 38 39 39 40 41 41 42 43 44 44 45 46 46 46 47 37 36 37 PROJECT: VÄXJÖ HOSPITAL, VÄXJÖ - SWEDEN ILLUSTRATION: LINK ARKITEKTUR Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Annual statement on corporate governance 38 39MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Multiconsult is subject to annual corporate governance re- porting requirements under section 3-3b of the Norwegian Accounting Act and the Norwegian Code of Practice for Cor - porate Governance, cf. section 7 on the continuing obligati- ons of stock exchange listed companies. The Accounting Act may be found (in Norwegian) at www.lovdata.no . The Nor- wegian Code of Practice for Corporate Governance, which was last revised on 14 October 2021, may be found at www. nues.no . The annual statement on corporate governance for 2021 follows below. The statement was approved by the board of directors on 16 March 2022. 1. IMPLEMENTATION AND REPORTING ON CORPORATE GOVERNANCE The board of directors is committed to build a sound and trust-based relationship between Multiconsult ASA and the company’s shareholders, the capital market participants, and other stakeholders. The group’s overall principles for corporate governance is approved by the board of directors and can be found at www.multiconsult-ir.com/corporate-governance . The group complies with the Norwegian Code of Practice for Corporate Governance (the code) issued by the Norwegian Corporate Governance Board, latest edition of 14 October 2021. The board of directors’ annual statement on how Multicon - sult has implemented the code is set out below. The state- ment covers each section of the code, and deviations from the code, if any, are specied under the relevant section. 2. BUSINESS According to the Articles of Association, Multiconsult’s bu- siness purpose is: “The business activities of the company are to engage in consulting engineering business, property management and other business activities in connection th- erewith, including participation in other companies”. Within the framework of its articles of association, Multicon- sult has established goals and strategies for its business. Multiconsult’s objectives and strategies are presented in the annual report in section “This is Multiconsult”. Risk and risk management is described in the board of directors’ report. The “Corporate social responsibility” section in the board of directors’ report covers stakeholder considerations in the company’s value creation. The Sustainability and corporate responsibility report is an integrated section in this annual report, and the annual report gives an account of Multicon- sult’s systematic work in areas important for stakeholders such as employees, business partners and the community. Multiconsult has dened objectives, strategies and risk proles for the company’s business activities such that the company creates value for shareholders in a sustainable manner. Multiconsult’s articles of association are available on the group’s website www.multiconsult-ir.com. 3. EQUITY AND DIVIDENDS EQUITY As of 31 December 2021, the group had a consolidated equ- ity of NOK 850.1 million, corresponding to an equity ratio of 28.0 per cent. Adjusted for the IFRS 16 eect, a consolidated equity of NOK 913.1 million and total asset NOK 2 266.1 milli- on, corresponding to an equity ratio of 40.3 per cent. The board of directors considers that the group has a capital structure that is appropriate for its objectives, strategy and risk prole. DIVIDENDS The dividend policy is to distribute at least 50 per cent of the group’s net prot annually. When deciding the annual divi- dend level, the board of directors will take into consideration the various aspects of the nancing strategy, such as expe- cted cash flow, capital expenditure plans, nancing require- ments and appropriate nancial flexibility. For the nancial year 2021, the board of directors proposes a dividend of NOK 6.00 per share, compared with NOK 8.00 per share in 2020. Dividend will be paid on or around 18 April 2022 to shareholders registered in the company’s sharehol- ders’ register as evidenced in a transcript as of 9 April 2021. Acquired shares subject to ordinary settlement in the Nor- wegian Securities Register (VPS), will carry the right to re- ceive dividends if acquired up to and including 7 April 2021. BOARD MANDATES TO INCREASE THE SHARE CAPITAL At the annual general meeting of the company on 19 April 2021 the board of directors was authorised to increase the share capital of the group by up to NOK 1 348 520. The man- date is restricted to issue shares as consideration in conne- ction with a) acquisitions, b) raise new equity to nance such acquisitions, c) in connection with share saving schemes for the employees in the group or d) in take-over situations. The authorisation is valid until the next ordinary general meeting in 2022, but in no event later than 30 June 2022. 4. EQUAL TREATMENT OF SHAREHOLDERS AND TRANSACTIONS WITH RELATED PARTIES Multiconsult has only one share class, and all shares have equal rights in the company. The share capital of Multicon- sult ASA is NOK 13 715 261.50 divided into 27 430 523 sha- res, each with a nominal value of NOK 0.50. On 16 August 2021, Multiconsult ASA issued 460 129 Mul- ticonsult shares, each with a nominal value of NOK 0.50, as partial consideration in connection with the acquisition of all shares in Erichsen & Horgen AS. The issuance was made pursuant to the authority granted at the Annual General Me- eting of Multiconsult ASA on 19 April 2021. After the issuance of the new shares the share capital of Multiconsult ASA is NOK 13 715 261.50 divided into 27 430 523 shares, each with a nominal value of NOK 0.50. On 1 December 2021, Multiconsult ASA completed a share buyback programme. The rst part of the programme was initiated on 1 October 2021, a share buyback programme for up to 275 000 shares in the market. This part of the pro- gramme ended on 12 November 2021. The last part of the programme was initiated 22 November 2021, a share buy- back programme for up to 175 000 shares in the market. On the 1 December 2021 the buyback programme was comple- ted as the number of shares needed for the employee share purchase programme in 2021 had been reached. Transacti- ons in the buyback program have been made in the market at stock exchange prices and is carried out in accordance with the Market Abuse Regulation (EU) No 596/2014 ("MAR") and Commission Delegated Regulation (EU) No 2016/1052 ("Safe Harbour Regulation"). Pursuant to the code, the reasons for waiving the pre-emp- tive right in connection with a share capital increase must be published in a stock exchange announcement. The board of directors will endeavor to comply with this recommendation if such circumstances should arise. The board of directors and the executive management are concerned to ensure equal treatment of all the company’s shareholders and that transactions with related parties take place on an arm’s length basis. Note 23 to the consolida- ted nancial statements provides details about transactions with related parties. Financial relationships related to the directors and executive personnel are described in note 9. 5. SHARES AND NEGOTIABILITY The company's shares are freely negotiable. The articles of association do not impose any restriction on the negotiabi- lity of the shares. There are no restrictions on the purchase or sale of shares by members of the company’s manage- ment as long as they comply with the rules on insider tra- ding, and subject to shares purchased through employee share purchase programme that needs to be held for a peri- od of 2 years to maintain the discount oered to employees when purchased. Each share carries one vote. However, the company’s articles of association set forth that no sharehol- der, including such shareholder’s close associates, may vote for more than 25 per cent of the shares at the general mee- ting. This restriction can be removed by the general meeting at any time by a 2/3 majority. Good corporate governance provides the basis for long-term value creation, to the benet of shareholders, employees and other stakeholders. The board of directors of Multiconsult has established a set of governance principles in order to ensure a clear division of roles between the board of directors, the executive management and the shareholders. CORPORATE GOVERNANCE Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Annual statement on corporate governance 40 41MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 6. GENERAL MEETINGS NOTICE, REGISTRATION AND PARTICIPATION The board makes provision for as many as possible of its shareholders to exercise their rights by attending the gene- ral meeting. The annual general meeting will take place on 7 April 2022. The group’s nancial calendar is published via Oslo Børs and in the investor relations section of the group’s website. Notice of the general meeting, with suciently detailed, comprehensive and specic supporting information is made available on the group’s website no later than 21 days prior to the meeting to ensure that all shareholders may form a view on all matters to be considered at the meeting. Share- holders who wish to receive the attachments by mail can re- gister with the company for this purpose. Shareholders must register their intention to attend by the specied deadline. The deadline for registering attendance is set as close to the meeting as possible, and, pursuant to the articles of asso- ciation; no sooner than ve days in advance of the general meeting. PROXY FORM, ADVANCE VOTING AND VOTING RESTRICTIONS General-meeting notices with documentation are made available on the group’s website immediately after the do- cumentation has been issued as a stock exchange announ- cement. General-meeting notices provide information on the proce- dures for attendance and voting, including the use of proxies. A form for the appointment of a proxy for voting is included in the general-meeting notice, as well as information re- garding which person is nominated by the company to act as a proxy for shareholders who cannot attend the general meeting in person. Shareholders registered in the Norwegi- an Central Securities Depository (No: Verdipapirsentralen www.vps.no) can also vote electronically in advance on each agenda item put forward in the general meeting. Sharehol- ders who cannot attend in person are encouraged to appoint a proxy. A proxy form, where a proxy has been named, is framed in such a way that the shareholder can specify how the proxy should vote on each issue to be considered. The notices have included information on the right to raise issues for consideration at the general meeting, including the relevant deadlines. Shareholders may cast a written vote in advance in matters to be discussed at the general meetings of the company. Such votes may also be cast through electronic communi- cation. The access to cast votes in advance is subject to the presen- ce of a safe method of authenticating the sender. The board of directors decides whether such a method exists before each individual general meeting. The notice of the general meeting states whether votes in advance are permitted and which guidelines, if any, that have been issued for such voting. As specied in section 5 in this statement, the company’s ar- ticles of association sets forth that no shareholder, including such shareholder’s close associates, may vote for more than 25 per cent of the shares at the general meeting. This re- striction can be removed by the general meeting at any time by a 2/3 majority. CHAIRING MEETINGS, ELECTIONS, ETC. General meetings will normally be chaired by the chair per- son of the board. The board of directors will however eva- luate whether it is appropriate to engage an external chair person to chair the meeting. The group’s chair person of the board and chief executive ocer are required to attend, and the board of directors en- courages that all directors from the board are present at the general meetings, in accordance with the instructions for the board. The nomination committee is encouraged to attend those meetings where the election and remuneration of directors and members of the nomination committee are to be consi- dered. The board of directors requires that the chair person of the nomination committee is present. The group’s auditor is present at the annual general meeting. The general meeting is normally invited to vote for a comple- te shareholder-elected board. As a result, no opportunity has been provided to vote in advance for individual candi- dates. Minutes from general meetings are published as soon as practicable via the stock exchange’s reporting system (www. newsweb.no, ticker code: MULTI) and in the investor relations section of the group’s website. 7. NOMINATION COMMITTEE The group shall, according to its articles of association, ar- ticle 6, have a nomination committee consisting of three members. The nomination committee is elected by the ge- neral meeting and the members have a period of service for two years unless the general meeting determines otherwise. In its work, the nomination committee focuses on ensuring that the board of directors functions optimally as a collecti- ve body, that the legal requirements for gender representa- tion and the requirements for serving in the Audit Committee are met, and that the directors complement each other in terms of their background and expertise. The nomination committee’s tasks are set out in the articles of association and include to; • nominate new directors for the board of directors to the general meeting, • propose remuneration to the directors at the general meeting, • propose remuneration to the members of the nomination committee, and • nominate new members of the nomination committee to the general meeting. The remuneration of the committee is determined by the general meeting. The general meeting may issue further guidelines for the nomination committee’s work. Pursuant to the code, the composition of the nomination committee must take account of the interests of sharehol- ders in general. The nomination committee has been composed in accor- dance with the code of practice to safeguard the interests of the shareholder community. The composition meets the co- de’s requirements for independence. None of the members of the nomination committee are members of the board, nor does the nomination committee include the company’s CEO or any other executive personnel. The annual general meeting on 19 April 2021 elected Ar- nor Jensen as new chair and Dag Marius Nereng as mem- ber of the nomination committee. Following, the nomination committee comprises at the time of Arnor Jensen as chair and Dag Marius Nereng and Vigdis Almestad as members. On the 7 September 2021 Dag Marius Nereng resigned as member of the nomination committee in Multiconsult ASA. Consequently, the nomination committee consist of two members - Arnor Jensen (chair person) and Vigdis Almstad (member) - until the next ordinary annual general meeting to be held on the 7 April 2022. The contact details of the chair of the nomination committee are available on the group’s website (https://www.multicon- sult-ir.com/committees), and shareholders with proposals for new directors to the board of directors are encouraged to send those to the chair of the nomination committee. 8. BOARD OF DIRECTORS: COMPOSITION AND INDEPENDENCE The composition of the board of directors is intended to se- cure the interests of the shareholders in general, while the directors also collectively possess a broad business and management background as well as in-depth sector under- standing and expertise in investment, nancing and capital markets. Weight is also given to the board’s ability to make independent judgements of the business in general and of the individual matters presented by the executive manage- ment. Consideration has also been given to gender repre- sentation and independence of directors from the company and its management. Pursuant to the articles of association, the board of directors may comprise seven to nine directors. Multiconsult’s board consists of eight directors, with ve shareholder-elected di- rectors including the chair, all elected for a one-year term by the general meeting. One deputy director has also been elected. The remaining three directors are employee-elec- ted. Two of the shareholder-elected and one of the employ- ee-elected directors are women. The board of directors does not include any personnel from the executive management team. All shareholder elected directors are independent of the group’s executive manage- ment, main shareholders and important business associates. Details on background, experience and independence of directors are presented on the group’s website. The board of directors conducted 15 meetings during 2021, of which 3 were held in person. The attendance rate was 98% in all the meetings. The Articles of Association does not require members of the board to own shares in the company. At the annual gene- ral meeting in 2021 the nomination committee proposed to continue resolutions from previous general meetings: "All di- rectors elected by the shareholders shall purchase shares in Multiconsult ASA for 20 per cent of the total gross directors' fees by the end of the year. The obligation applies annually as long as a board member is re-elected, until the individual board member's holding of shares has a total market value equivalent to the size of one year's board fees. Board mem- bers must then maintain a shareholding of this size as long Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Annual statement on corporate governance 42 43MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 as they are part of the board. After a board member resigns, the obligations under this resolution lapse." The number of shares in Multiconsult held by each director can be found in note 9 to the consolidated nancial statements in this annu- al report and in the biography of each director on the group’s website. 9. THE WORK OF THE BOARD OF DIRECTORS The board of directors has overall responsibility for the overall administration of the company, organising it in acco- rdance with the Norwegian Public Companies Act (NO: all- mennaksjeloven) and for supervising the chief executive ocer and the company’s activities. The board of directors establishes annual plans for its work, with particular emphasis on business objectives, strategic direction and implementation. The board of directors has established instructions for its own work as well as for the executive management with particular emphasis on clear allocation of responsibilities and duties. The principal tasks of the board of directors include to de- termine the company’s strategy and to monitor how it is im- plemented. The work comprises appointing the group’s chief executive ocer and to monitor control functions necessary to ensure acceptable management of the company’s assets. Instructions describing the rules of procedure for the board of directors work and its consideration of matters, have been adopted by the board of directors. The division of respon- sibilities between the board of directors and the chief exe- cutive ocer is specied in more detail in the instructions. The chief executive ocer is responsible for the group’s exe- cutive management. Responsibility for ensuring that the bo- ard of directors conducts its work in an ecient and correct manner rests with the chair person of the board. The board of directors establishes an annual plan for its me- etings, and evaluates its work and expertise normally once a year. The annual plan species topics for board meetings, including reviewing and following up the company’s objecti- ves and strategy, budgets, reporting of nancial information, the notice for the general meeting with associated docu- mentation, and the board’s meeting with the auditor. The board of directors has elected an audit committee amongst the members of the board. The audit commit- tee comprises of three members. The committee currently comprises of Tove Raanes as the chair person, Rikard Ap- pelgren and Torben Wedervang as members. The sharehol- der-elected director, Tove Raanes and Rikard Appelgren, are independent of the company’s management, main share- holder(s) and material business contacts. The same is valid for the employee -elected director Torben Wedervang, other than his employment contract. Pursuant to section 6-43 of the Norwegian Public Limited Liability Companies Act, the audit committee shall: • prepare the board of directors’ supervision of the group’s nancial reporting process; • monitor the systems for internal control and risk management; • have continuous contact with the group’s auditor regarding the audit of the annual accounts; • review and monitor the independence of the group’s auditor, including in particular the extent to which services other than auditing provided by the auditor or the audit rm represent a threat to the independence of the auditor; • be responsible for preparing the group's election of auditor. The board of directors has adopted separate instructions for the audit committee setting out further details on the duties and procedures of the committee. The group’s remuneration committee consists of three di- rectors from the board of directors, Bård Mikkelsen as the chair person, Hanne Rønneberg and Karine Gjersø as mem- bers. The shareholder-elected directors, Bård Mikkelsen and Hanne Rønneberg, are independent of the company’s ma- nagement, main shareholder(s) and material business con- tacts. The same is valid for the employee -elected director Karine Gjersø, other than her employment contract. The remuneration committee is an advisory committee to the board of directors. The committee prepares, and re- commend matters regarding the remuneration of, and mat- ters pertaining to the group’s executive management for the board of directors to consider and decide. The recommen- dations of the remuneration committee cover all aspects of remuneration to executive management, including but not limited to salaries, allowances, bonuses, long-term equity incentive plans and benets-in-kind. The board of directors has adopted separate instructions for the remuneration committee setting out further details on the duties, composition and procedures of the committee. The board of directors evaluates its own performance and that of the chief executive ocer annually and reports its evaluations to the nomination committee. In the event that the chair person of the board is, or has been, personally involved in matters of material character, the board of directors’ consideration of such matters will be chaired by another member of the board. In the event that a member of the board of directors or executive management have material interests in items to be considered by the bo- ard of directors, the director has an obligation to notify the board of directors. 10. RISK MANAGEMENT AND INTERNAL CONTROL RISK MANAGEMENT The group has processes and routines for risk management. The goal is to be proactive rather than reactive, and there- by secure the group’s long-term earnings growth and ensure that objectives through the various business units and busi- ness activities are achieved. The board of directors and executive management are ulti- mately responsible for risk management. Risk management processes are established to cover all material business units and material processes in the group. Multiconsult’s goals, which are expressed in the business plan, strategies and po- licies, provide a foundation for the risk management. Each manager is responsible for the risk management activities in his/her respective areas. Eectiveness of risk management is continuously on the agenda in each business unit’s manage- ment meeting, however, not as a separate issue, but included in the discussions of how each business unit is able to work proactive to reach its objectives. Risk management is based on a wide risk analysis and assess- ments are reviewed and discussed with the executive mana- gement and thereafter presented to the board of directors at least on an annual basis. Input to the discussion is a risk register where the most signicant risks are listed, including disputes with clients over delays or errors, loss of key projects etc. Risk level is determined based on an analysis of the pro- bability that these will occur and the potential impact on the group goals. At the same time, the eectiveness of existing controls and risk mitigation measures are assessed. Risk management processes are established to identify, eva- luate and handle risk in a systematic manner for the group's activities, with particular focus on projects and other operati- onal risks in addition to nancial risks. Financial risk is managed in accordance with the group’s - nancial strategy, which is described under the section “Fi- nancial risk and risk management” in the board of directors’ report. CONTROL ENVIRONMENT The internal control is based on the overall control environ- ment established by the board of directors and executive management. Key components are the organisational cul- ture and values, its structure, the management philosophy, responsibilities, and powers that are clearly dened and communicated to all levels in the organisation. The board of directors has formulated explicit decision-ma- king processes and instructions for its own work, the remu- neration committee, audit committee and CEO, in order to facilitate eective management of operational risks. On an adequate frequency, the board of directors’ reviews and gives instructions, like the one to CEO and the authori- sation policy. The group has policies for key areas like pro- curement, information security, data privacy, human relation (HR), investor relation (IR), quality and environment. These policies set objectives and principles and forms part of the foundation for good internal control. The group decision making process and authorisation policy regulates the allocation of powers at every level, from the individual employee to the board of directors. The areas co- vered include bids, investments, nancial instruments, rental and lease agreements, and expenditures. Reports on risk management and internal control within the group are discussed by the board of directors, the audit committee and a team of executive managers. Through the audit committee, the board of directors adopts and moni- tors policies and procedures of nancial reporting and risk management reporting. Internal controls are subject to a li- mited and risk-based internal audit, as well as review by the group’s external auditor. The results of these reviews are re- ported to the audit committee in connection with the board of directors’ annual review. FINANCIAL REPORTING The group has processes and routines for internal control of nancial reporting. The main principles are transparen- cy, segregation of duties, analytical controls, and systema- tic and thorough management reviews. The periodic review consists of timely recognition of revenues, evaluation of possible provisions and other project reviews of both nan- cial and operational targets. Analysis of the nancial positi- on is performed and documented. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Annual statement on corporate governance 44 45MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Management prepares periodic reports on business and operational developments to the board of directors, which are discussed in board meetings. These reports are based on the results of the review process and include status of key performance indicators, update of market developments, operational issues, nancial results, and highlights of orga- nisational issues. The nancial results and position are followed up in monthly nancial reports, compared to prior year, budgets and fore- casts. Reporting also includes non-nancial key performan- ce indicators related to each business area. In addition, ma- nagement prepares analysis of key performance indicators, nancial results and cash flow development. The interim reports and annual nancial statements are re- viewed by the audit committee in advance of consideration and discussion in the board of directors. Financial risk mana- gement and internal control are also addressed by the bo- ard’s audit committee. This includes a review of the external auditor’s ndings and assessments after the annual nancial audits, as well as relevant views from the auditor related in- terim periods. Signicant issues in the auditor’s report, if any, are also reviewed by the board of directors. ETHICS AND CORPORATE RESPONSIBILITY Multiconsult takes a proactive stance towards corporate social responsibility in a wide range of areas in its dealings with its customers, employees and partners. The company and its subsidiaries work continuously with ethics, anti-cor- ruption and corporate responsibility, which are integral parts of the basis for decisions. Multiconsult must comply with a number of guidelines and reporting procedures as part of its corporate responsibilities. The main documents have been approved by the company’s board of directors, which also sets the overall goals for the areas covered. For more in- formation, see Sustainability policies and certicates in the section Sustainability and Corporate responsibility section this report. SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT Multiconsult’s Sustainability report is an integrated part of this annual report. The status of the work by the business areas involving corporate responsibility and the work regar- ding sustainability in Multiconsult is included in the section Sustainability and corporate responsibility in this annual re- port. 11. REMUNERATION OF THE BOARD OF DIRECTORS The remuneration to the board of directors is described in note 9 to the nancial statements. Director’s fees are determined by the general meeting ba- sed on recommendations from the nomination committee. These recommendations have been based on the board of directors’ responsibility, expertise and the complexity of the business. All shareholder elected directors shall purchase shares in Multiconsult for 20 per cent of the total gross di- rectors' fees by the end of the year, subject to certain con- ditions. The directors have not been awarded share options or any other form of incentive-based remuneration for the scal year 2021. None of the directors have undertaken any special assign- ments for the group other than their work on the board. Di- rectors are unable to accept such assignments without ap- proval from the board of directors in each case. An overview of shares owned by the directors and their close associates is included in note 9 to the consolidated nancial statement. 12. REMUNERATION OF EXECUTIVE PERSONNEL The board of directors has a remuneration committee. Its main responsibilities are evaluation and advice to the board of directors relating to remuneration strategy, main princi- ples and systems for the total remuneration (including bo- nus) to the CEO and other members of the executive ma- nagement. The CEO participates in the meetings, unless the committee discusses issues relating to the CEO. The group’s suggested executive remuneration policy (Re- muneration policy on determination of salary and other re- muneration for leading persons) can be found on the group’s website www.multiconsult-ir.com, the policy must be appro- ved by the annual general meeting in 2022. Moving forward the policy must be approved by the general meeting in the event of any material changes and at least every fourth year. The policy species the main principles for compensa- tion of executive management and is based on contribution to the company’s commercial strategy, long-term interests and nancial viability. The remuneration policy aims to en- sure alignment of the interests of shareholders and group executive management as far as possible. Note 9 to the consolidated nancial statement contains table of the re- munerations given to leading persons and the group’s remu- neration policy. For a detailed description of the remunera- tion given to leading persons for the years 2021 and 2020, please see the executive remuneration report (Remunera- tion report for salary and other remuneration for leading persons) which can be found on the group’s website www. multiconsult-ir.com. Total remuneration to the executive management team consists of a xed element and a variable performance-ba- sed bonus, a share purchase programme for all employees, as well as pension and insurance arrangements. Fixed remuneration to members of the executive manage- ment team consists of base salary (main element) and fringe benets. The bonus programme is linked to nancial targets, agreed action plans and relevant key performance indicators. Pay- out of bonus earned is partly in cash and partly in shares, an annual cap has been placed on bonuses. No share options have been issued to employees, executive management or directors of the group. CHANGES TO THE EXECUTIVE MANAGEMENT AND BOARD OF DIRECTORS The general meeting of Multiconsult ASA on 19 April 2021 re-elected Bård Mikkelsen as chairperson of the board. Ri- kard Appelgren, Hanne Rønneberg and Tove Raanes were re-elected as directors. Sverre Hurum was elected as a new board member (former deputy member), while Tore Sjursen came in as a new deputy member. All of the above were ele- cted for a term of one year. There have been no changes in the executive management team since 1 January 2021. 13. INFORMATION AND COMMUNICATION The board of directors has established guidelines and Inves- tor Relation policy for investor communication. Multicon- sult’s communication with the capital markets is based on the principles of openness and equal treatment of all sha- reholders. Multiconsult shall provide the public with accurate and time- ly information, to form a good basis for making decisions re- lated to valuation and trade of the Multiconsult share. Infor- mation to the stock market is published in the form of annual and interim reports, stock exchange announcements and investor presentations. Such information will be distributed and published in English via Oslo Børs disclosure system, www.newsweb.no, and via the group’s website. Multiconsult holds public presentations in connection with the announcement of quarterly and preliminary annual - nancial results. The presentations are available as live we- bcast and can be found on the group’s website subsequent the event. Presentations made for investors in connection with the quarterly reports will be made public together with the reports. Important events aecting Multiconsult will be reported immediately. The CEO, CFO and Investor Relation Ocer is responsible for the main dialogue with the investor community, hereunder the company’s shareholders. Multiconsult puts emphasis on maintaining an open and ongoing dialogue with the investor community, hereunder frequent meetings with investors, fund managers, analysts and journalists. The company may also be present at rele- vant investor conferences and seminars. The investor relation policy states that the company should have limited contact with the investor community and the business press for a period of three weeks prior to the pu- blication of nancial reports that Multiconsult is scheduled to publish. Reporting of nancial and other information shall be timely and accurate. The main purpose of this information presents a comprehensive picture of the group’s nancial results and position, as well as communicating the group’s goals and ob- jectives, including its strategy, value and market drivers and important risk factors. The group publishes a nancial calendar every year with an overview of the dates of important events, including the general meeting, publication of interim reports and capi- tal markets day. This calendar is made available as a stock exchange announcement and on the group’s website as soon as it has been approved by the board of directors. Multiconsult comply with the Oslo Børs Code of Practice for IR of 1. March 2021 except for the fact that publication of the half-year report is published some days later than the recommended; 15th day of the second month after the end of the accounting period in question. See nancial calendar for deviation to this. Multiconsult will do its most to follow updates or changes to the mentioned code if updated. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Annual statement on corporate governance 46 47MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 14. TAKEOVERS The board of directors has established guiding principles for responding to possible takeover bids. In the event of a take-over bid being made for the company, the board of directors will follow the overriding principle of equality of treatment for all shareholders, and will seek to ensure that the group’s business activities are not disrup- ted unnecessarily. The board of directors will strive to ensure that shareholders are given sucient information and time to form a view of the oer. The board of directors will not seek to prevent any take-over bid unless it believes that the interests of the group and the shareholders justify such actions. The board of directors will not exercise mandates or pass any resolutions with the in- tention of obstructing any take-over bid unless this is ap- proved by the general meeting following the announcement of the bid. If a take-over bid is made, the board of directors will issue a statement in accordance with statutory requirements and the recommendations in the code. In the event of a take-over bid, the board of directors will obtain a valuation from an independent expert. Any transaction that is in eect a signicant disposal of the group’s activities will be submitted to the general meeting for its approval. 15. AUDITOR The external auditor, Deloitte, annually presents its over- all plan for the audit of the group for the audit committee’s consideration. The external auditor’s involvement with the board of dire- ctors during 2021 related to the following: • Presented the main features of the audit work. • Attended board meetings approving the nancial statements, reviewing possible signicant changes in accounting principles, assessing signicant accounting estimates, and considering all possible disagreements between the external auditor and executive management. • Conducted a review of the group’s most central internal control procedures and systems, including the identica- tion of weaknesses and proposals for improvements. Employees: Number of employees comprise all sta on payroll including sta on temporarily leave (paid and un- paid), excluding temporary personnel. Order intake: Expected operating revenues on new con- tracts and conrmed changes to existing contracts. Only group external contracts are included. Order backlog: Expected remaining operating revenues on new and existing contracts. Only group external contracts are included. Call-os on frame agreements are included in the order backlog when signed. Net interest-bearing debt: Non-current and current inte- rest-bearing liabilities deducted cash and cash equivalents. DISCLAIMER This report includes forward-looking statements, which are based on our current expectations and projections about future events. All statements other than statements of his- torical facts included in this notice, including statements re- garding our future nancial position, risks and uncertainties related to our business, strategy, capital expenditures, pro- jected costs and our plans and objectives for future operati- ons, including our plans for future costs savings and synergi- es may be deemed to be forward-looking statements. Words such as “believe,” “expect,” “anticipate,” “may,” “assume,” “plan,” “intend,” “will,” “should,” “estimate,” “risk” and similar expressions or the negatives of these expressions are inten- ded to identify forward-looking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. You should not place undue reliance on these forward-looking statements. In addition, any for- ward-looking statements are made only as of the date of this notice, and we do not intend and do not assume any obligation to update any statements set forth in this report. ALTERNATIVE PERFORMANCE MEASURES (APMS) Multiconsult uses alternative performance measures for periodic and annual nancial reporting in order to provide a better understanding of the group’s underlying nancial performance. • Held a meeting with the board of directors without the presence of the executive management. • Conrmed its independence, and provided an overview of non-audit services provided to the group. During 2021, the external auditor attended six meetings with the audit committee. Pursuant to the code, the board of directors has established guidelines for the group’s management use of the external auditor for non-audit services. The board of directors reports to the annual general meeting on the external auditor’s total fees, split between audit and non-audit services. The annual general meeting approves the auditor’s fees for the holding company. DEFINITIONS Net operating revenues: Operating revenues less sub con- sultants and disbursements. EBITDA: EBIT before depreciation, amortisation and impairment. EBITDA margin (%): EBITDA as a percentage of net opera- ting revenues. EBITA: EBIT before amortisation and impairment of goodwill and acquisition-related intangible assets. EBITA margin (%): EBITA as a percentage of net operating revenues. EBIT: Earnings before net nancial items, results from asso- ciates and joint ventures and income tax. EBIT margin (%): EBIT as a percentage of net operating re- venues. Other opex ratio (APM): Other operating expenses ad- justed for IFRS 16 eects as a percentage of net operating revenue. Billing ratio (per cent): Hours recorded on chargeable pro- jects as a percentage of total hours worked (including admi- nistrative sta) and employer-paid absence. Billing ratio per segment includes allocated administrative sta. ORDER INTAKE AND ORDER BACKLOG MEASURES Order intake and order backlog are presented as alternative performance measures. They are indicators of the compa- ny’s revenues and operations in the future. Order intake: Expected operating revenues on new con- tracts and conrmed changes to existing contracts. Only group external contracts are included. Order backlog: Expected remaining operating revenues on new and existing contracts. Only group external contracts are included. Call-os on frame agreements are included in the order backlog when signed. Order backlog does not reflect the total expected volume related to frame agreements and includes only call-os that have been signed under these agreements. ITEMS EXCLUDED FROM EBIT EX. RESTRUCTURING COST AND CALENDAR EFFECT: EBIT ex. restructuring cost is calculated by excluding one-o nextLEVEL restructuring cost of NOK 30.0 million in 2020. There was a calendar eect of one less working day in 2021 which had a negative impact on net operating revenues and EBIT of approximately NOK 11.2 million compared to 2020. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Annual statement on corporate governance PROJECT: SKJÆRVABUEN GANGBRU, LILLESTRØM ILLUSTRATION: LINK ARKITEKTUR / INPLACE VISUAL 48 49 MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Amounts in NOK million (except percentage) 2021 2020 Net operating revenues 3 803.7 3 660.9 Reported employee benet expenses 2 811.4 2 660.1 Reported other operating expenses 449.5 402.2 Operating expenses 3 260.9 3 062.3 EBITDA ex. restucturing cost 542.8 598.7 Depreciation and amortisation 194.0 197.6 Impairment - 30.0 Restructuring cost - (30.0) EBIT ex. restucturing cost 348.9 401.0 Ex. restucturing cost EBITDA margin (%) 14.3 % 16.4 % Ex. restucturing cost EBIT margin (%) 9.2 % 11.0 % Estimated calendar eect 11.2 EBIT ex. restucturing cost and adjusted calendar eects 360.1 401.0 Adjusted EBITDA margin (%) 14.6 % 16.4 % Ex. restucturing cost and adjusted calendar eects EBIT margin (%) 9.5 % 11.0 % The board and CEO of Multiconsult ASA – Oslo, 16 March 2022 Bård Mikkelsen Chair of the board Grethe Bergly CEO Hanne Rønneberg Director Rikard Appelgren Director Torben Wedervang Director Gunnar Vatnar Director Sverre Hurum Director Tove Raanes Director Karine Gjersø Director Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Annual statement on corporate governance 50 51MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 51 50 51 Annual Statement on Corporate governance Multiconsult’s commitment to sustainability is reflected in the vision “It's by understanding the past, we can make progress, and we will promote sustainable development wherever we are given the opportunity to leave our mark.” SUSTAINABILITY AND CORPORATE RESPONSIBILITY PROJECT: HAMMARKULLTORGET, GOTHENBURG - SWEDEN ILLUSTRATION: LINK ARKITEKTUR In Multiconsult, the goal of delivering on sustainability and corporate responsibility is made possible through three ap- proaches: Through the group’s own business, its operations, and through its corporate responsibility. The reporting on the group’s Environmental, Social and Governance (ESG) performance is sectioned using these approaches. SUSTAINABILITY POLICIES AND CERTIFICATES Multiconsult has the following group policies and state- ments 1) covering dierent ESG topics: • Environmental Policy • Global Mobility Policy • People Policy • Privacy and Data Protection in Multiconsult • Health & Safety Policy • Slavery, Child Labour and Human Tracking Statement • Code of conduct • Whistle-blower Policy • Procurement Policy • Policy for Corporate Social Responsibility As the subsidiaries in the group are operating in dierent markets and targeting dierent segments, some subsidiaries adopt supplementing policies and guidelines. The group will in 2022 establish a new overarching Sustainability Policy. According to the current Multiconsult Environmental Policy, all subsidiaries must adopt a certicate for environmental performance, be it ISO 14001, ECO-Lighthouse, EMAS or equivalent. Work is ongoing to ensure that subsidiaries that are not holding a certicate will have certication in place by the end of 2022. Overview Multiconsult group (“Multiconsult” or “the group”) comprises Multiconsult ASA (“parent company” or “company”) and all subsidiaries and associated companies. The following entities are included in the sustainability reporting; Multiconsult Norge AS, Multiconsult Polska Sp. z o.o., Multiconsult Asia Pte Ltd, Multiconsult UK Ltd, Iterio AB, LINK Arkitektur AS, LINK Arkitektur AB, LINK Arkitektur A/S, Erichsen & Horgen AS, Ingeniørrmaet Malnes og Endresen AS, Nordland Teknikk AS. Subsidiary Certicates Multiconsult Norge AS ECO-Lighthouse Head oce-model ISO 9001 Iterio AB ISO 14001 LINK Arkitektur AS ECO-Lighthouse Head oce-model LINK Arkitektur AB ISO 14001 Multiconsult Polska Sp. Z o. o. ISO 14001, ISO 9001:2015, ISO 45001:2018 Multiconsult UK Ltd. ISO 9001 1 The policies and statements are available on Multiconsult’s website https://www.multiconsultgroup.com CERTIFICATES HELD BY MULTICONSULT SUBSIDIARIES Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 52 53MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 REPORTING STANDARD In the 2021 annual report, Multiconsult is reporting accor- ding to the Global Reporting Initiative (GRI) 2021 standards. By applying the GRI standards to the reporting, information is made available to all stakeholders in a transparent way, consistent over time. As 2021 is the rst year the group is fully reporting on the standards, both well-developed tar- gets and measurement of performance and areas for impro- vement have been identied. The group’s annual reporting on sustainability is reviewed by the board of directors. The annual reporting on sustainability for 2021 has not been externally assured. The group’s ambition is to have the GRI reporting externally assured for 2022. MATERIALITY ASSESSMENT AND PRIORITIES A materiality assessment provides the foundation for the group to focus its activities and contribute where its foot- print is largest and where it can make the greatest impact. This is a requirement in the GRI standards 2021. A full mate- riality assessment for Multiconsult group was conducted in 2021. The materiality assessment consisted of a peer review, a survey among employees and interviews with key stake- holders. The interviewed stakeholders were key clients from the public and private sector, the group’s bank, an investor, a representative of the trade unions and an environmental organisation. Based on the results of the materiality assess- ment the following key material topics for Multiconsult are dened: The executive management team has approved the list of material topics and prioritised the following topics for the annual report 2021: Environmental and climate impact of own operations; employee development and welfare; equ- ality and diversity; health and safety; influence on policy makers and regulations. These topics were selected based on where Multiconsult have the most robust gures for re- porting purposes. The goal is ultimately to report on all ma- terial topics. All topics will be mentioned in the annual report for 2021, but only the prioritised topics will be reported un- der the following GRI standards: GRI 2: General Disclosures 2021, GRI 3: Material topics, GRI 305: Emissions 2015, GRI 401: Employment 2016, GRI 403: Occupational Health and Safety 2018, GRI 405: Diversity and Equal Opportunity 2016, GRI 415: Public policy 2016. The material topics will undergo an annual revision and discussion by the executive manage- ment team. ENVIRONMENT Multiconsult is committed to contribute to the green UN Sustainable Development Goals. Based on the skilled work- force and experience Multiconsult is well position to be a part of the solution to sustainable challenges, through proposing sustainable alternatives to clients, reducing own environ- mental footprint in the group’s operations, actively impro- ving business standards, and through influencing authorities and policy makers to adopt regulation in line with the gre- en UN Sustainable Development Goals and the 1.5-degree target of the Paris Climate Agreement. From Multiconsult’s materiality assessment the following environmental topics were prioritised: Environmental and climate impacts on as- signments, circular economy, and environmental and clima- te impact of own operations. For the 2021 report, environ- mental and climate impact of own operations is highlighted. ENVIRONMENT – BUSINESS It is through Multiconsult’s assignments the greatest impact on the society can be measured. Multiconsult’s vision, “…to promote for sustainability in all assignments where we are given the opportunity to leave our mark” is operationalised in dierent ways in the subsidiaries, under the group En- vironmental Policy, which guides the subsidiaries in the ef- forts to think green in all we do. The following table highlights the key goals established for 2021 by the parent company and its subsidiaries, and their performance toward the goals for 2021, and new goals and ambitions for the coming years. BUSINESS UNIT GOALS FOR 2021 OUTCOME COMMENTS & FUTURE GOALS Multiconsult ASA - - For 2022 establish a baseline for operations that are classied as green using the EU Taxonomy. Aim to be in top tier among our peers and set new targets annually. Multiconsult Norge AS In all material assignments, cla- rify and challenge the environ- mental ambitions of the client Partially achieved Clarifying environmental am- bitions of clients is an element in Multiconsult Norge AS’ quality plan for all assignments. Reporting has recently started, and targets will be considered in 2022. Measure climate emission reductions in the subsidiary’s assignments. Postponed The goal has been postponed and replaced by the group goal on the taxonomy. Establish sustainability targets in the business areas. Partially achieved Each business area has in their strategies addressed sustai- nability as a key driver in the market. The business areas are currently in the process of ope- rationalising the strategies. LINK Arkitektur AS, LINK Arkitek- tur AB, LINK Arkitektur A/S Focus on circular economy architecture, climate-smart architecture and biodiversity in all projects. Partially achieved Focus is achieved but not quan- titatively measured. The goal will be measured under the group goal on the taxonomy. Iterio AB Choose assignments from a moral and ethical sustainability perspective and propose sustai- nable solutions. Partially achieved Focus is achieved but not quan- titatively measured. The goal will be measured under the group goal on the taxonomy. Other subsidiaries Focus on environmental mana- gement in accordance with ISO 14001. Achieved Not quantitatively measured. The goal will be measured under the group goal on the taxonomy. ENVIRON- MENTAL • Environmental and climate impacts on assignments • Circular economy (incl. impact on materials) • Environmental and climate impact of own operations SOCIAL • Employee development (and welfare) • Equality and diversity • Research and development • Health and safety • Human rights • Social sustainability and local communities GOVERNANCE • Influence on business partners • Influence on policy makers and regulations Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 54 55 EU TAXONOMY ABOUT TAXONOMY IN MULTICONSULT GROUP The law implementing the EU Taxonomy Regulation in Nor- way will enter into force after the regulations have been incorporated in the EEA Agreement. The Ministry of Finance expects that the incorporation will take place in the rst half of 2022. Nevertheless, the Ministry of Finance encourages Norwegi- an companies that will be covered by the new reporting obli- gations, to include taxonomy-related information, the amo- unt or taxonomy eligible activities in annual reports for the nancial year 2021, even if the law may not be in eect at the time of submitting the annual report. 2 Taxonomy align- ment indicates that an activity is considered green under the taxonomy regulations. Taxonomy eligibility indicates that an activity has the potential to be considered green given furt- her evaluation. Based on this, along with Multiconsult group’s and the mar- ket’s expectations, it has been decided to include taxonomy eligibility in this annual report. Reporting on taxonomy align- ment will be included in the annual report for 2022 in acco- rdance with the expected legislation adopted by the Norwe- gian Parliament, but not yet incorporated. Multiconsult will report a baseline taxonomy alignment rate by the time the annual report for 2022 is published. This is dependent on the EU succeeding in implementing the taxo- nomy regulation for all six taxonomy topics. Multiconsult aim to be in the top tier among our peers in taxonomy alignment rate and will set year-on-year targets to increase the share of revenues that comes from taxonomy-aligned activities. For Multiconsult an improved taxonomy alignment rate can be achieved by enabling client’s projects to become taxo- nomy-aligned, by targeting taxonomy-aligned activities and by reducing the group’s exposure to activities that are not eligible. According to the forthcoming law, Multiconsult ASA, as a listed company with more than 500 employees, shall disclo- se the proportion of Taxonomy-eligible and Taxonomy non-eligible economic activities in their total operational revenues, investments/capex and operational costs. 3 assignments can be considered as eligible. These gures are calculated for Multiconsult Norge AS, LINK Arkitektur AS and LINK Arkitektur A/S, using the registered cost from the ERP system. METHODOLOGY TURNOVER - OPERATING REVENUES 4 Article 1(5) of the Disclosures Delegated Act denes an eli- gible economic activity as an activity that is described in the delegated acts adopted pursuant the Taxonomy Regulation. For Multiconsult this means that if turnover is generated from an activity that can be tested under the Taxonomy, then the activity is eligible for the purpose of reporting. Multiconsult activities are connected to assignments. It has been assu- med that if an assignment can be connected to an activity described in the Climate Change Delegated Acts (annexes 1 and 2), then the activities connected to the assignment are eligible. To assess the eligibility of the group activities, a list of all the assignments that generated operating revenues in 2021 was used. This list contained all the relevant information possible to generate from the ERP system, including project name, client, business area and objects. Based on this informati- on, an assessment was made as to whether the assignment could be considered eligible or not. In some cases, this in- formation was not sucient, and the assignment was then marked as “not evaluated”. Moreover, for an assignment to be evaluated the assignment needed to have operating re- venues of at least NOK 1 million generated in 2021. Only as- signments in the subsidiaries Multiconsult Norge AS, Multi- consult Polska Sp. z.o.o., LINK Arkitektur AS, LINK Arkitektur A/S and Iterio AB have been evaluated. As of January 2022, two of the six environmental objectives in the EU Taxonomy are established, the remaining four are under development. When these four objectives are esta- blished, a larger share of Multiconsult assignments can be dened as eligible. CAPITAL EXPENDITURES – CAPEX Eligible CapEx has been dened as the capital expenditu- res related to assets or processes that are associated with Taxonomy-eligible economic activities. None of the capital expenditures in 2021 have been evaluated as eligible. OPERATING EXPENDITURES – OPEX Eligible OpEx has been dened as the operational expendi- tures related to assets or processes that are associated with Taxonomy-eligible economic activities. Based on this deni- tion, wages and overhead of employees working on eligible TAXONOMY TABLE To enable comparability between Taxonomy-eligibility and alignment reporting, a part of the template included in An- nex I to the Disclosures Delegated Act is used. ELIGIBLE AND NON-ELIGIBLE OPERATIONAL REVENUES OPERATIONAL REVENUE Eligible Non-eligible Not evaluated BUSINESS AREA ECONOMIC ACTIVITIES OPERATIONAL REVENUE PROPORTION OF OPERATIONAL REVENUE A. TAXONOMY-ELIGIBLE ACTIVITIES NOK million % Taxonomy-Eligible activities (not evaluated for Taxonomy-alignment) 01 Buildings & properties 7.1, 7.2 732.3 17% 02 Industry 3.1, 3.4, 4.16, 5.12, 7.1, 5.9, 6.16 87.4 2% 03 Mobility & Transportation 6.13-6.16, 6.19, 6.20, 7.1, 9.1 881.2 21% 04 Renewable Energy 4.1-4.10 228.4 5% 05 Water & Environment 1.4, 4.15, 4.5, 5.1-5.8, 8.1, 9.1 287.1 7% Operational revenue of Taxonomy-eligible activities (A.2) 2 216.3 52% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES 01 Buildings & properties 7.1, 7.2 87.5 2% 02 Industry 3.1, 3.4, 4.16, 5.12, 7.1, 5.9, 6.16 203.4 5% 03 Mobility & Transportation 6.13-6.16, 6.19, 6.20, 7.1, 9.1 17.3 0% 04 Renewable Energy 4.1-4.10 0.3 0% 05 Water & Environment 1.4, 4.15, 4.5, 5.1-5.8, 8.1, 9.1 93.4 2% Operational revenue of Taxonomy-non-eligible activities 401.9 9% C. NOT EVALUATED Non-evaluated projects 1 359.6 32% Operational revenue from non-evaluated companies 306.8 7% Non-evaluated operational revenue 1 666.4 39% Total (A+B+C) 4 284.7 39% 52% 9% 2 https://www.regjeringen.no/no/aktuelt/nye- regler-om-barekraftig-nans-vil-ikke-tre-i- kraft-fra-nyttar/id2892207/ 3 https://ec.europa.eu/nance/docs/ level-2-measures/taxonomy-regulati- on-delegated-act-2021-4987_en.pdf 4 Multiconsult does not refer to turnover but uses the terminology "operating revenues" MULTICONSULT ANNUAL REPORT 2021 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 56 57MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 OPEX BUSINESS AREA ECONOMIC ACTIVITIES OPERATIONAL EXPENDITURES PROPORTION OF OPEX A. TAXONOMY-ELIGIBLE ACTIVITIES NOK million % Taxonomy-Eligible activities (not evaluated for Taxonomy-alignment) 01 Buildings & properties 7.1, 7.2 535.3 16% 02 Industry 3.1, 3.4, 4.16, 5.12, 7.1, 5.9, 6.16 70.7 2% 03 Mobility & Transportation 6.13-6.16, 6.19, 6.20, 7.1, 9.1 511.8 16% 04 Renewable Energy 4.1-4.10 166.3 5% 05 Water & Environment 1.4, 4.15, 4.5, 5.1-5.8, 8.1, 9.1 193.9 6% OpEx of Taxonomy-eligible activities (A.2) 1 478.0 45% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES 01 Buildings & properties 7.1, 7.2 61.4 2% 02 Industry 3.1, 3.4, 4.16, 5.12, 7.1, 5.9, 6.16 138.8 4% 03 Mobility & Transportation 6.13-6.16, 6.19, 6.20, 7.1, 9.1 6.7 0% 04 Renewable Energy 4.1-4.10 0.2 0% 05 Water & Environment 1.4, 4.15, 4.5, 5.1-5.8, 8.1, 9.1 54.4 2% OpEx of Taxonomy non-eligible activities 261.5 8% C. NOT EVALUATED Non-evaluated projects 822.3 25% OpEx from non-evaluated companies 728.2 22% OpEx of non-evaluated projects 1 550.5 47% Total (A+B+C) 3 290.1 47% 45% 8% ENVIRONMENT – OPERATIONS Multiconsult’s operations are conducted in line with the group Environmental Policy, and the subsidiaries’ environ- mental management system. In 2021 focus areas for the group has been on CO2-emissions, energy usage, and waste. Climate emissions 2021 will be the rst year of reporting emissions from all subsidiaries on direct emissions from operations (scope 1), indirect emissions from energy use (scope 2), and indirect emissions from travel (scope 3), in line with the Green House Gas (GHG) Protocol. Given that this is the rst year all sub- sidiaries are reporting on Green House Gas, there are some uncertainties and estimates in the gures. The largest subsidiary, Multiconsult Norge AS, reports on all indirect emissions (scope 3) in line with the standards of the Skift Norge initiative on scope 3 emissions reporting. (Skift Norge is a business-led climate change initiative, which is working for Norway to reach its climate goals by 2030.) For the remaining subsidiaries, the goal is to establish a broad scope 3 emissions reporting for 2022. The group aims to align the reporting with the recommendations of the Task force on Climate related Financial Disclosure (TCFD). Tables of greenhouse gas emission for each subsidiary is av- ailable in appendix to the Sustainability and Corporate re- sponsibility section on page 136. OPEX Eligible Non-eligible Not evaluated 2021 2020 2019 COMMENTS GHG Protocol Category Description tonne CO2e kg CO2e/full- time equivalent tonne CO2e kg CO2e/full- time equivalent tonne CO2e kg CO2e/full- time equivalent For 2020 and 2019 the numbers are only available for Multiconsult Norge AS and not the remaining subsidiaries SCOPE 1 1 222 410 979 342 1 057 364 Fuel use in smaller company cars 567 190 317 111 316 109 Multiconsult Fuel use in heavier company cars 168 56 138 48 189 65 Only Multiconsult Norge AS Ful use in machines (boats, bore rig) 458 154 524 183 552 190 Only Multiconsult Norge AS Gas used for heating 30 10 X X X X Only LINK Arkitektur A/S SCOPE 2 2 858 960 849 297 972 335 Energy use buildings 2 855 959 847 296 970 334 Multiconsult of which is electricity 2 636 885 708 247 809 278 Multiconsult of which is district heating/ cooling 219 74 139 49 161 55 Multiconsult Norge AS, Erichsen & Horgen and Ingeniørrmaet Malnes og Endresen AS, LINK Arkitektur AB Electricity use cars 3 1 2 1 3 1 Only Multiconsult Norge AS SCOPE 3 10 967 3 683 646 226 2 387 821 Scope 3: 6. Business travel Air travel 530 178 428 150 2 102 723 Multiconsult except LINK Arkitek- tur A/S and Multiconsult Polska. Scope 3: 6. Business travel Railway 36 12 0 Multiconsult except LINK Arkitek- tur A/S and Multiconsult Polska. Scope 3: 6. Business travel Mileage (all fossil fuel) 161 54 156 55 218 75 Only Multiconsult Norge AS, Erichsen & Horgen and Ingeniør- rmaet Malnes og Endresen AS Scope 3: 6. Business travel Rental car 12 4 10 4 X X Only Multiconsult Norge AS Scope 3: 5. Waste generated in operations Residual waste 67 22 52 18 67 23 Multiconsult group except LINK Arkitektur A/S Scope 3: 8. Upstream leased assets Buildings 1 374 461 X X X X Only Multiconsult Norge AS Scope 3: 1. Purchased goods & services Purchased goods and services 7 399 2 485 X X X X Only Multiconsult Norge AS Scope 3: 2. Capital goods Capital goods 607 204 X X X X Only Multiconsult Norge AS Scope 3: 7. Employee commuting Employee commuting 782 262 X X X X SUM 15 047 5 053 MULTICONSULT GROUP GHG emissions intensity ratio (scope 1 og 2): Year tonne CO2e/full-time equivalent 2021 1.36 2020 0.90 2019 0.97 MULTICONSULT GROUP TOTAL GHG EMISSIONS Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 58 59MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 COMMENTS ON GREENHOUSE GAS EMISSIONS FOR MULTICONSULT The dominating sources for greenhouse gas emissions in Multiconsult are purchased goods and services, such as consultant services, food and IT-related equipment and licenses. Another important source is emissions according to rental of oces. Note that greenhouse gas emissions are underestimated, as data is not available from all oces. The table for Multiconsult Norge AS shows a higher green- house gas emissions related to electricity in 2021 compared with 2020 and 2019. The reason is that this year's emissi- ons from electricity consumption is calculated based on a market-based method, see appendix. Consumption in kWh is at the same level as in previous years. For 2022 the goal is to buy certicates of origin for all purchased electricity. Iterio AB purchased certicates of origin for 100 per cent of its electricity use (wind power) at the main oce. This is not compensated for in the calculations. A survey has been conducted in the subsidiaries to map employees traveled habits when commuting between home and the oce in 2021. Due to this, estimated greenhouse gas emission from travelling between home and work is es- timated to 220kg CO2 (margin of error is 15 per cent), and added in scope 3 in the table. The survey reviled that 87 per cent of the respondents went by car and 10 per cent by pu- blic transportation. CLIMATE EMISSION TARGETS Multiconsult is committing to join the Science-based Target initiative to reduce CO2-emissions from the group’s operati- ons in line with the 1.5-degree Paris Agreement Climate Tar- get. In line with this Multiconsult Norge AS has committed to reducing CO2 emissions (scope 1 and 2) to zero by the end of 2029, with carbon removal being used to oset possible remaining CO2 emissions. The group acknowledges that the upstream indirect emissions (scope 3) constitute the largest climate footprint of the group. A strategy for reducing up- stream emissions will be developed in the process of joining the Science based Target Initiative. OTHER ENVIRONMENTAL TOPICS The subsidiaries in the group have established other en- vironmental goals for their operations. BUSINESS UNIT GOALS FOR 2021 OUTCOME COMMENTS & GOALS FOR 2022 Multiconsult ASA - - Multiconsult is committing to join the Science-based Target initiative to reduce CO2-emissions from the group’s operations in line with the 1.5-degree Paris Agreement Climate Target. In 2022 the baseline and year-on-year targets will be established. Multiconsult Norge AS Expand the emissions reporting and activa- te emission reducing actions. Achieved A broad scope 3 reporting for 2019 was presented and an improved methodology used for reporting the subsidiary’s scope 3 reporting for 2021. 50 per cent reduction in own business purpose flight travels compared to 2019. Achieved Down from 3 085 estimated number of own business pur- pose flights in 2019 to 747 in 2021. The target of maximum 1 542 own business purpose flights is extended for 2022. Emissions will be oset for 2021 and onwards. Half the number of fossil oce cars in 2021. Partially achieved At the end of 2021, there are eight old fossil cars less than at the beginning of the year. The car fleet consisted of 108 Multiconsult Norge AS owned or leased cars, of which 18 electric cars and three hybrids. The subsidiary has set a target of only owning or leasing zero emission cars by the end of 2025, setting a target of reducing the amount of fossil cars for 2022 by 25. Other subsidiaries Focus on environmental management in accor- dance with ISO 4001. Achieved Not quantitatively measured. The goal will be measured under the group goal on the taxonomy. BUSINESS UNIT GOALS FOR 2021 OUTCOME COMMENTS & GOALS FOR 2022 Multiconsult Norge AS Reduce purchases and waste volumes by increasing the degree of reuse of equipment and furniture. Achieved Savings of NOK 4.5 million achieved by reuse/loans/leasing compared to proposals from interior designers. The climatic and en- vironmental consequen- ces of the procurement and life cycle costs shall be assessed where relevant. Partially achieved Products that can document known environmental stan- dards shall be preferred. Of the 40 largest suppliers in 2021 (around half of supplies by value), 16 were environ- mentally certied. Reduce energy use by 10 per cent in 2030 compared to 2019. Achieved 2.3 per cent reduction by 2021. Bream in-use monitor- ing for 5 oces. Not achieved Postponed to 2022. LINK Arkitektur AS, LINK Arkitek- tur AB, LINK Arkitektur A/S The climatic and en- vironmental consequen- ces of the procurement shall be assessed. Partially achieved Via a supplier list, the subsidiary follows up whether subcontractors and suppliers are ISO 14001 certied or not, and this becomes part of the selection process. Other subsidiaries Focus on environmental management in accor- dance with ISO 4001. Achieved Not quantitatively measured. The goal will be measured under the group goal on the taxonomy. Reduce energy use. - Monitoring commenced in 2021. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 60 61MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 REPORTING ACCORDING TO TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURE, TCFD Multiconsult is gradually implementing the recommendati- ons of the Task Force on Climate-related Financial Disclosu- re, TCFD. As this is the rst year of implementation, this chapter describes how far the group has come in the imple- mentation process and planned activities ahead. Climate change provides both risks and opportunities for Multiconsult. As the group has committed to the UN Sustai- nable Development Goals, the Science based Target Initiati- ve and is a member of the UN Global Compact, the group is committed to contribute to a transition to a net-zero world in line with a 1.5-degree scenario. Based on future scenarios with respect to consequences of actions to decrease impact on global warming, Multiconsult will in general have more opportunities, than threats. The threats and opportunities for climate risk is addressed in line with other threats and opportunities by executive management team and the bo- ard of directors. Transition risk and physical risk is evaluated separately. Physical risk is evaluated to be low, as the group does not own substantial assets vulnerable to acute or chronic physi- cal risk. HSE procedures are in place to handle climate indu- ced weather events and the group and subsidiaries’ insuran- ce is considered to cover all climate risks in a sucient way. The largest transitional climate risk is linked to market risks and opportunities. The market risk is considered low for both short-, medium- and long term. Short-, medium- and long-term marked opportunities related to changes in the environment are considered to be substantial and a key market driver in the strategy process. As the construction industry is a large contributor to climate emissions both globally and in Multiconsult’s markets, the sector is under scrutiny from policy makers. For Multiconsult, this is primarily identied as an opportunity as the groups business model is based on a workforce with skills and experience that provide consultancy to clients related to topics such as; designing zero-emission buildings, reuse of building materials, climate emission accounting and nature-based solutions. As climate adaptation is rapidly becoming more relevant, consultancy on surface water management and solutions to reduced hazards related to flooding oers opportunities. The need for renewable energy, electrication of society and a green industry development is identied as one of four key mar- ket opportunities in the updated group strategy. The goal is to gain a strategic position as a preferred partner towards the green shift, by taking market opportunities unleashed by society’s transition towards sustainable energy solutions. As employees working in marked areas exposed to climate mi- tigation policies have the competence needed in the market areas where growth is expected, the overall market risk for the group is perceived as low. The executive management team aim for the company to be in the top tier compared to its peers, concerning revenues coming from taxonomy aligned activities. Engaging in taxo- nomy aligned assignments, contributing to assignment be- coming aligned, and reducing exposure to assignments that do signicant harm to climate mitigation are ways to achieve that goal. As a contributor to many types of projects, it is considered a reputational risk both if Multiconsult is perceived as mo- ving ahead of the marked by rejecting projects that have a large carbon footprint as well as for contributing to projects that are considered unsustainable by employees and other stakeholders. The reputational risk will be discussed in the process of developing a Sustainability Policy for the group. Multiconsult is undergoing the group’s rst full reporting of scope 1, 2 emissions and scope 3 emissions for travel. As the largest subsidiary, Multiconsult Norge AS is undergoing full scope 3 reporting. The scope 3 reporting methodology has been jointly agreed by consulting engineers engaged under the Skift Norge-umbrella. The methodology will gradually be implemented for all subsidiaries. By setting ambitious and tangible climate goals for both the business, the operations and for the contribution to the societies’ transformation to a net-zero emission and climate resilient society, the group will seek to build a credible foundation for the strategic posi- tion as a preferred partner towards the green shift. SOCIAL All activities within the built environment may have an im- pact on the social sustainability of society. Creating and maintaining an inclusive, value creating, safe and secure working environment is an important success factor in con- tributing to social sustainability. Based on the materiality assessment the following topics were found to be the ones where Multiconsult made the most signicant impact. Em- ployee development (and welfare), equality and diversity, research and development, health and safety, human rights, social sustainability and local communities. For the 2021 re- porting, employee development (and welfare), equality and diversity, health and safety are highlighted. SOCIAL – BUSINESS In urban planning, architecture, landscape architecture, and civil engineering, the term built environment, refers to the human-made environment that provides the setting for human activity, including homes, buildings, zoning, streets, sidewalks, open spaces, transportation options, and more. The signicant impact in relation to social sustainability is delivered through the planning of built environment, in par- ticular through the architectural work. The built environment always aects people to some degree and thereby, it is pos- sible to create a positive impact when the built environment is designed with insight as to how it can support a good and healthy life. Multiconsult’s subsidiaries LINK Arkitektur AS, LINK Arkitektur AB and LINK Arkitektur A/S are the subsidi- aries who are considered to have the most signicant impact in relation to social sustainability, through: • Designing for safety and positive social control. • Supporting a feeling of community and belonging by creating meeting places and opportunities for random encounters between people. • Creating environments that benets health & wellbeing through inspiring people to be active, spend time outside. • Designing for healing environments. SOCIAL - OPERATIONS For the subsidiaries’ internal focus on social sustainability, securing a good and productive working environment for their employees is most important. Other issues that sub- sidiaries work proactively with is contributing to education, work force development as well as inspiring and informing (internally and externally) about the need of sustainable de- velopment. EMPLOYEES AND THE ORGANISATION Highly educated and development-oriented employees are the main asset for the Multiconsult group as a competen- ce-based business. Multiconsult strive to build an inclusive, value creating, safe and secure working environment that values consideration for others, transparency, good commu- nication, equal opportunities, and to ensure work life balan- ce for everyone. The group take a proactive, systematic and targeted approach to equal opportunity and diversity, and issues related to gender, age, ethnicity, sexual orientation or religious beliefs shall never limit an employee’s opportunity within the company. This is stated in the group’s People Po- licy which applies to all subsidiaries. In 2022 Multiconsult will continue to develop and start implementing detailed group policies and subsidiary specic guidelines regarding equal opportunities to ensure diversity and inclusion in the recru- itment, promotion and development processes. In 2022, the group will also assess which KPIs regarding employees, or- ganisation and equal opportunities will be set at group level. At the same time an associated reporting structure for all subsidiaries will be established. Employee statistics per 31 December 2021 show that two per cent hold a PhD degree, 62 per cent a Master degree and 25 per cent a Bachelor degree, while 11 per cent have other educational backgrounds. Total number of employees per 31 December 2021 was 3 200 (2 925). The table below shows the total number of employ- ees as well as a breakdown by type of employee per gender and entity. The number reported are head counts per 31 De- cember 2021. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 62 63MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 GENDER Total workforce (permanent employees + temporary employees + non-guaranteed hours employees) Male 13 1 386 136 0 14 61 96 64 51 133 17 6 1 977 Female 10 809 126 1 5 51 153 94 24 70 5 4 1 352 Total 23 2 195 262 1 19 112 249 158 75 203 22 10 3 329 Number of (permanent) employees (full-time and part-time) Male 13 1 293 136 0 12 61 95 59 50 133 16 5 1 873 Female 10 792 126 1 4 51 150 91 24 70 5 3 1 327 Total 23 2 085 262 1 16 112 245 150 74 203 21 8 3 200 Number of temporary employees Male 0 4 0 0 0 0 0 2 0 0 0 0 6 Female 0 2 0 0 0 0 3 2 0 0 0 1 8 Total 0 6 0 0 0 0 3 4 0 0 0 1 14 Number of non-guaranteed hours employees Male 0 89 0 0 2 0 1 3 1 0 1 1 98 Female 0 15 0 0 1 0 0 1 0 0 0 0 17 Total 0 104 0 0 3 0 1 4 1 0 1 1 115 Number of full-time employees Male 13 1 203 127 0 10 60 84 50 48 131 16 5 1 747 Female 10 669 124 1 3 46 123 63 20 68 5 3 1 135 Total 23 1 872 251 1 13 106 207 113 68 199 21 8 2 882 Number of part-time employees Male 0 90 9 0 2 1 11 9 2 2 0 0 126 Female 0 123 2 0 1 5 27 28 4 2 0 0 192 Total 0 213 11 0 3 6 38 37 6 4 0 0 318 Multiconsult ASA Multiconsult UK Ltd LINK Arkitektur A/S Multiconsult Polska Sp. z o.o. LINK Arkitektur AS Ingeniørrmaet Malnes og Endresen AS Multiconsult Norge AS Iterio AB Erichsen & Horgen AS Multiconsult Asia Pte Ltd LINK Arkitektur AB Nordland Teknikk AS Total Multiconsult has several individuals who are not employed but whose work is controlled by the group. The most common types of individuals within this category are interns and sub-con- tractors. The numbers are head counts per 31 December 2021. BUSINESS UNIT SUB-CONTRACTORS INTERNS TOTAL Multiconsult ASA 1 0 1 Multiconsult Norge AS 8 0 8 Multiconsult Polska Sp. z o.o. 45 0 45 Multiconsult UK Ltd 4 0 4 Iterio AB 10 0 10 Multiconsult Asia Pte Ltd 0 0 0 LINK Arkitektur AS 0 7 7 LINK Arkitektur AB 1 1 2 LINK Arkitektur A/S 0 2 2 Erichsen & Horgen AS 2 0 2 Ingeniørrmaet Malnes og Endresen AS 1 0 1 Nordland Teknikk AS 0 0 0 TOTAL 72 10 82 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 64 65MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 NEW HIRES AND EMPLOYEE TURNOVER A total of 402 new employees were hired as permanent employees across the dierent subsi- diaries in the group during 2021. Table shows new hires by subsidiary, gender and age group. The total turnover of permanent employees was 338 in 2021. Table shows turnover by subsidiary, gender and age group. New hires (permanent employees) Gender Female 1 113 51 - - 6 17 8 6 202 Male - 138 31 - - 8 7 8 8 200 Age 29 years and younger - 84 42 - - 4 7 3 5 145 30 - 39 years 1 101 29 - - 6 4 9 3 153 40 - 49 years - 42 6 - - 3 9 3 2 65 50 - 59 years - 21 5 - - 1 4 1 3 35 60 years and older - 3 - - - - - - 1 4 Turnover (permanent employees) Gender Female 1 69 19 - 1 6 16 19 7 138 Male 1 144 15 - 6 4 14 7 9 200 Age 29 years and younger - 23 13 - 1 2 6 2 2 49 30 - 39 years - 80 11 - 3 2 12 11 5 124 40 - 49 years 1 50 7 - 1 5 3 9 3 79 50 - 59 years 1 33 1 - 1 1 5 4 3 49 60 years and older - 27 2 - 1 - 4 - 3 37 The average weighted employee turnover 5 for Multiconsult group was 13 per cent, compared to 11.1 per cent in 2020. In the table below, the weighted employee turnover per entity can be found. Nordland Teknikk AS, with eight employees, does not have available data. For 2022, Nordland Teknikk AS will be fully integrated into Multiconsult Norge AS. ENTITY WEIGHTED TURNOVER Multiconsult ASA 9.1% Multiconsult Norge AS 10.3% Multiconsult Polska Sp. z o.o. 13.3% Multiconsult UK Ltd 37.3% Iterio AB 9.2% Multiconsult Asia Pte Ltd 0 % LINK Arkitektur AS 12.2% LINK Arkitektur AB 16.7% LINK Arkitektur A/S 20.9% Erichsen & Horgen AS 13.7% Ingeniørrmaet Malnes og Endresen AS 0 % Nordland Teknikk AS n/a 5 Weighted employee turnover percent last 12 months = Number of employees who have left in the last 12 months/Average number of employees the last twelve months/100 Multiconsult ASA Multiconsult UK Ltd LINK Arkitektur A/S Multiconsult Polska Sp. z o.o. LINK Arkitektur AS Multiconsult Norge AS Iterio AB Multiconsult Asia Pte Ltd LINK Arkitektur AB Total Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 66 67MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 RECRUITMENT POSITION Multiconsult strive to recruit employees with a strong sense of integrity, who identify with the group values, show initia- tive and take responsibility for their own performance and development. In 2022 the group human resources depart- ment will start detailing a new recruitment policy and local guidelines together with line management, and start with Multiconsult Norge AS. Further implementation of a group recruitment policy and local guidelines will continue in the remaining subsidiaries by the end of 2022 and in 2023. The general competition in the candidate market for engi- neers and architects in Europe has intensied signicantly during 2021. Multiconsult is experiencing greater competi- tion from new players in the market. However, Multiconsult is still overall well positioned to recruit employees with the required educational backgrounds, both in terms of new graduates as well as more experienced candidates. Within the industry in Norway, Multiconsult Norge AS is ran- ked as the third most attractive employer among both stu- dents and engineering professionals in the annual surveys conducted by Universum in Norway. Close collaboration with selected universities and colleges continued in 2021, with a substantial presence at both career fairs and company pre- sentations. As in 2020, many of these activities were digital due to the Covid-19 situation. Multiconsult Norge AS’ sum- mer internship programme MUST for students was comple- ted successfully. The students gave positive feedback even with a pandemic adapted program. Multiconsult Norge AS continues to experience strengthened competition when recruiting top talents with technological background and a mindset to solve digital challenges within the industry. Of the new employees in Multiconsult Norge AS, one per cent holds a PhD degree, 64 per cent a Master degree, 24 per cent a Bachelor degree, and 10 per cent have other educational backgrounds. 30 per cent of the new recruits during 2021 graduated in 2020 or 2021. For the remaining subsidiaries recruitment information has not been collected at a group level. EMPLOYEES AND EXPERTISE Employee satisfaction, professional development, a lear- ning organisation and recruitment capability, are important factors for Multiconsult’s long-term success. Multiconsult has a constant need to strengthen its expertise and capa- city, both in project and line management. During 2021, 574 employees in Multiconsult Norge AS completed courses through the e-learning platform exceed- ing a total of over 3 000 hours spent learning. 133 employ- ees completed the course “Green assignments”, addressing how to ensure sustainability in all assignments. COMPETENCE NETWORKS In Multiconsult Norge AS, the discipline networks for de- veloping and sharing competencies and skills, have initia- ted a wide range of innovation and development activities in 2021. The networks have arranged monthly seminars for professional input, knowledge sharing, new updates and fa- cilitated interdisciplinary cooperation. Dierent educational initiatives within each eld have been carried out, includi- ng self-developed courses, establishing theme-specic “schools” with weekly training, presentations from co-ope- rations with external professional entities, and both mono- disciplinary and interdisciplinary workshops and network meetings, podcasts and literature developments have been undertaken. Numerous policy documents, checklists, best-practice guidelines, workflows, and standards have been developed and updated. The aim has been to ensure standard executi- on of work procedures across the subsidiary. All competence networks have their own advocate for sustainability dening best practice for sustainable con- KNOWLEDGE MANAGEMENT AND DEVELOPMENT Recruitment capability, employee satisfaction and professi- onal development are all important factors for Multiconsult’s long-term success. Thus, there is a need for continuous de- velopment of expertise and capability both in assignments and at dierent levels within line management. The market is changing rapidly, challenging Multiconsult to adapt more eciently to the constantly changing demand in competencies and skills. Requests from customers and partners, and Multiconsult strategic ambition to hold a lea- ding position in the market, drives the need for constant adjustment and development. Multiconsult aims to optimi- se its competence development initiatives to the tasks and responsibilities our employees hold in our assignments and more widely in the organisation. Multiconsult continue to create goal-oriented and flexible measures of development adapted to people or teams who are aspiring to advance their level or area of responsibility in assignments. Further- more, Multiconsult will work to make the processes of parti- cipant nomination and registration for educational courses and programmes more agile and ecient, as well as develop internal knowledge-sharing platforms and improve systems for tracking employee’s knowledge and skills. Optimising systems for data tracking and develop a better searchable database for employee qualications have high priority. E-LEARNING In 2021, Multiconsult transformed many internal courses into individual digital self-studies and webinars. This combi- nation of learning activities has led to increased attendance and more eective knowledge sharing between tutor and participant, between participants from dierent parts of the organisation, at a lower cost. Mandatory self-studies are accessible for the group, in the subsidiaries’ languages. Multiconsult’s internal e-learning platform is accessible for Multiconsult Norge AS, LINK Arkitektur AS, Multiconsult UK Ltd and Multiconsult Polska Sp. Z o.o. and Multiconsult ASA. Extensive production of e-learning material has been the primary focus in 2021 for knowledge management and development related to the e-learning platform. Multiple experts across the Multiconsult business areas, have contri- buted with developing and updating training courses which meets employees’ day-to-day challenges and needs, as well as Multiconsult established standards and procedures. A broader analysis of the production and consumption of le- arning material for the digital training portal, was implemen- ted during the fourth quarter of 2021. The study is ongoing, sulting within each professional eld. The sustainability ad- vocates keep their respective network updated on new and alternative solutions to ensure low environmental impact in assignments. In 2021 several of the competence networks have updated their internal documents for “green guidance” and implemented measures for emission gures. The goal has been to raise the awareness of more sustainable choices regarding materials and construction parts, processes, and execution of work. A prioritised matter has also been to exa- mine Multiconsult Norge AS’ client’s sustainability ambitions and to encourage clients to set high targets for sustainabi- lity in their projects. SUCCESSION AND TALENT PIPELINE In 2021 the top-level line managers have been included in the group’s annual succession review. During the ongoing Covid-19 situation a broader talent review has been carried out, mainly focusing on the follow up of critical key personnel in ongoing assignments. For instance, in Multiconsult Norge AS, major work was conducted in the segment management groups to get an overview of "top 100" talents within project management. EMPLOYEE SHARE PURCHASE PROGRAMME For seven consecutive years Multiconsult has oered em- ployees to purchase shares in the Multiconsult employee share purchase programme. This stems from the understan- ding that employee ownership promotes long-term commit- striving to detect barriers and enablers for both producing and consuming e-learning material in the group. Data from the analysis will serve as the basis for outlining a goal-ori- ented framework to ensure continuous development and updates, knowledge sharing and training. OTHER COURSES AND PROGRAMS During 2021, a signicant number of employees in Multicon- sult Norge AS and LINK Arkitektur AS completed various in- ternal project management courses and programs. 2020 2021 Gender distribution Female Male Female Male Group 1 Simplied project management (small-scale, monodiscplinary) 41 45 113 87 Group 2 Standard project management (interdisciplinary) 8 14 21 23 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 68 69MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 ment and loyalty to the business, with these factors influ- encing performance over time. The 2021 programme was completed in the fourth quarter with 27 per cent participati- on among eligible employees, an increase from 22 per cent in 2020, and with over 170 more participants. WORKING ENVIRONMENT Throughout 2021, Covid-19 has had both high and low im- pact on Multiconsult group’s work environment. During the pandemic Multiconsult’s main priority has been the health of its employees and other stakeholders. The interaction and joint decision making between employees and their mana- gers have been key in ensuring a balance between working from the home oce or oce. Involvement of employee re- presentatives is a central part of Multiconsult values. There is no European works council in the company, but each sub- sidiary is expected to have an active collaboration with em- ployee representatives. In Multiconsult Norge AS there are three collaboration meetings annually between the heads of union groups and the management, as well as monthly sit- downs between executive vice president HR department and heads of unions. EMPLOYEE SURVEYS Previously, Multiconsult conducted a biannual employee engagement survey with participants from all subsidiaries. The survey was last conducted in 2019. In 2021 Multiconsult changed the process and format for conducting employee engagement surveys and purchased a new tool, to moni- tor engagement and working environment more frequent- ly. Employee-Pulse, measures evidence-based drivers for engagement, loyalty and health, including employee Net Promoter Score (eNPS), which is a global standard for mea- suring engagement and loyalty through one question. Eletive is an important tool for ongoing insight into, and work with, the work environment, engagement, and employees' health, as well as promotes self-management and employeeship. Part of the motivation to implement this new tool, is to en- courage even closer dialogue between employees and their manager, and to encourage and empower employees to take responsibility for their own working situation. The Em- ployee-Pulse process also contains tips on brief and regu- lar check points. These will supplement the more structured Planned Development process, that managers and em- ployees conduct 2-3 times annually. The completion of this process is currently not being tracked, but spot checks sug- gest this is widely implemented. The Planned Development process is under continuous development. Sick leave in Multiconsult Norge AS for 2021 was 3.7 per cent, an increase from 3.5 per cent in 2020. All sick leave is monitored and reported. Multiconsult Norge AS’s sick leave over the past three years is illustrated. Multiconsult Norge AS will continue to work towards the goal of 3.3 per cent sick leave in 2022. The group monitors absence due to injuries caused by work-related accidents or incidents and near misses. Work-related ill health is not specically reported as it is included in the reporting on sick leave. Absence due to sick child in Multiconsult Norge AS for 2021 was one per cent, the same as in 2020. Absence due to sick child is monitored. SICK LEAVE The average total sick leave at Multiconsult in 2021 was 3.1 per cent. 6 All subsidiaries, except Nordland Teknikk AS with eight employees, track and report sick leave. From 2022, Nordland Teknikk AS will become fully integrated into Mul- ticonsult Norge AS and will follow the subsidiary’s reporting SICKNESS ABSENCE, INCIDENTS AND INJURIES Multiconsult works systematically with HSE and makes con- certed eorts to mitigate risks that can expose employees to unwanted short- or long-term health consequences or injuries. To align short-term actions with long-term plan- ning, Multiconsult’s HSE unit use Road Map methodology to optimise its resources. Yearly activity plans ensure that re- quired annual activities are conducted, and HSE action plans are there to correct or improve identied areas. The working environment committee (NO: Arbeidsmiljøutvalg/AMU) and executive management team receives periodic reports on the activities and progress of group HSE action plans. Oc- cupational health and safety systems aligned with HSE risk exposure is in use throughout the group. HSE Risk assessments are key input to HSE action plans. The risk assessments are developed according to category of work, like drilling, laboratory or eld work. The HSE risk as- sessments give input to management, at various levels, of where improvements are required and where resources must be allocated. Multiconsult’s subsidiaries have dierent channels for repor- ting improvement suggestions, unwanted incidents, deviati- ons and so forth. The reporting can either be done directly to responsible line manager or other managers within the organisation (HR/Compliance) or to employee represen- tatives. The policy and procedures governing the right to report is administered by the management, but employee representatives have the right to influence the policies and procedures alongside organisational reporting structure, or tools for reporting. Multiconsult marks the international Health and Safety Day in all subsidiaries each year, on the 28 April. In 2021, Multi- consult focused on work-related musculoskeletal disorders (MSDs). The topic was chosen due to the nature or Multi- consult’s most normal working situation, which is oce work. One of the key risk factors of oce work is MSDs. On the He- alth and Safety Day, workers were provided with information on how to prevent MSDs, and what to do if MSDs have been identied. Furthermore, HSE training is given to all new employees in Multiconsult. For existing employees, several training alter- natives are available with a risk-based approach as a base. Depending on the exposure and responsibility, managers and employees receive the required training to manage and conduct their work in a safe and healthy manner. In additi- on, Multiconsult conducts audits to make sure policies and procedures are adhered to. Multiconsult ASA 0.6% Multiconsult Norge AS 3.7% Multiconsult Polska Sp. z o.o. 3.8% Multiconsult UK Ltd 2.7% Iterio AB 1.9% Multiconsult Asia Pte Ltd 0.9% LINK Arkitektur AS 4.6% LINK Arkitektur AB 3.2% LINK Arkitektur A/S 3.7% Erichsen & Horgen AS 3.9% Ingeniørrmaet Malnes og Endresen AS 5.0% Nordland Teknikk AS No sick leave recorded 2021 2020 2019 Short-term 1.9% 1.7% 2.2% Long-term 1.9% 1.8% 2.0% Total 3.7% 3.5% 4.2% 2021 2020 2019 Injuries with Absence 2 2 0 H1 value (LTIF-rate) 0.4 0.4 0.0 H2 value (TRCF) 2.8 1.8 0.6 Near misses 17 22 26 2021 2020 Total absence due to sick children 1.0% 1.0% Covid related absence 0.2% 0.5% Non-covid related absence 0.8% 0.5% 6 The average is based on reported sick leave from Multiconsult ASA and all subsidiaries except Nordland Teknikk AS, which has not reported numbers for 2021. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 70 71MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 On 31 December 2021, 38 per cent of Multiconsult Norge AS’s 2 085 employees were female and 62 per cent were male. The table illustrates the gender distribution at Multi- consult Norge AS the past three years. EQUAL OPPORTUNITIES The purpose of Norway’s Anti-Discrimination Act is to pro- mote equal opportunities and rights, and to prohibit discri- mination on the grounds of gender, pregnancy, maternity leave, ethnicity, sexual orientation, language, religion, nati- onality or belief. Multiconsult works actively to promote the objectives of the Act in the group. The board of directors are conscious of anti-discrimination in recruitment, appointment, payment, and customisation of working conditions, as well as the work on developing appro- priate attitudes. Multiconsult wants to be at the forefront of ensuring equal opportunities in the industry and contribute to setting equa- lity matters on the wider social agenda. In 2021 Multiconsult Norge AS has continued to actively work with the targets for gender demographics. Multiconsult Norge AS has success- fully obtained more than the KPI set by 30 per cent gender balance on top-3 line management level. In 2022 the work will continue and furthermore the subsidiary will start to out- line KPIs on gender balance regarding the subsidiary’s pro- ject management pool. Multiconsult Norge AS continue to strive for gender balance in nal interviews in recruitment processes as a general principle. Multiconsult aims to be a workplace with no discrimination on the grounds of disability. Active eorts are made to de- sign and customise physical working conditions so that all the group’s facilities are accessible by all employees. The workplace and work tasks are customised on an individual basis for employees or job applicants with disabilities. Multiconsult value diversity amongst the employees, clients, suppliers and partners. In accordance with the Anti-Discri- mination Act, no discrimination, whether due to skin colour, ethnicity, gender, religion, sexual orientation, physical disa- bility or age, will be tolerated. All employees have the fre- edom of association and the right to collective bargaining within national laws and regulations. Multiconsult shall not employ children of compulsory school age. Great care shall be exercised if any work is carried out by youth below the age of 18. At the end of 2021, Multiconsult group had 3 200 (2 925) employees where females accounted for 41 per cent (41 per cent) and 59 per cent (59 per cent) were male. The group is actively working to increase the proportion of females. The average permanent employees gender distribution in the entities were 54 per cent male and 46 per cent female on 31 December 2021. The board of directors of Multiconsult ASA consist of three women and ve men. Multiconsult ASA’s executive manage- ment team consist of ve women and six men. The table below shows the corresponding gender proporti- ons per subsidiary for employees graduated in 2020-2021, middle management, administrative sta, and operational organisation. Numbers for LINK Arkitektur AB are not avai- lable. 2021 2020 2019 Female 38% 36% 36% Male 62% 64% 64% Male 57% 62% 52% 0% 75% 54% 39% 39% 68% 66% 76% 63% Female 43% 38% 48% 100% 25% 46% 61% 61% 32% 34% 24% 38% Graduates (2020-2021) Middle management Administrative sta Operation organisation Male (%) Female (%) Male (%) Female (%) Male (%) Female (%) Male (%) Female (%) Multiconsult ASA 0% 0% 80% 20% 58% 42% 60% 40% Multiconsult Norge AS 42% 58% 64% 36% 47% 53% 64% 36% Multiconsult Polska Sp. z o.o. 63% 37% 57% 43% 28% 72% 53% 47% Multiconsult UK Ltd 0% 0% 0% 0% 0% 100% 93% 7% Iterio AB 25% 75% 40% 60% 0% 100% 55% 45% Multiconsult Asia Pte Ltd 0% 0% 0% 0% 0% 100% 0% 100% LINK Arkitektur AS 25% 75% 40% 60% 14% 86% 40% 60% LINK Arkitektur AB N/A N/A N/A N/A N/A N/A N/A N/A LINK Arkitektur A/S 0% 0% 44% 56% 17% 83% 76% 24% Erichsen & Horgen AS 79% 21% 64% 36% 50% 50% 66% 34% Ingeniørrmaet Malnes og Endresen AS 100% 0% 50% 50% 50% 50% 76% 24% Nordland Teknikk AS 0% 0% 100% 0% 0% 100% 75% 25% Multiconsult ASA Multiconsult UK Ltd LINK Arkitektur A/S Multiconsult Polska Sp. z o.o. LINK Arkitektur AS Ingeniørrmaet Malnes og Endresen AS Multiconsult Norge AS Iterio AB Erichsen & Horgen AS Multiconsult Asia Pte Ltd LINK Arkitektur AB Nordland Teknikk AS Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 72 73MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 COMPENSATION AND PAY Multiconsult compensation levels are based on educati- on, experience, role, responsibilities and market conditions. The table show the ratio of the salary and the percentage increase for the organisation’s highest-paid individual to the median annual salary for the other employees. Multiconsult Asia Pte Ltd only has one employee and therefore no ratio can be reported. In the table the ratio of the base salary of men versus women is included. The numbers are based on the median salary of permanent employees. Multiconsult Asia Pte Ltd only has one employee and thus there is no ratio to calculate. The numbers do not take into account education, experience, responsibilities and therefore do not compare equal roles. Rao salary Rao increase Multiconsult ASA 2.6 0.6 Multiconsult Norge AS 2.2 0.2 Multiconsult Polska Sp. z o.o. 6.5 1.8 Multiconsult UK Ltd 2.6 0.0 Iterio AB 1.7 0.7 Multiconsult Asia Pte Ltd N/A N/A LINK Arkitektur AS 2.4 1.0 LINK Arkitektur AB 3.0 1.0 LINK Arkitektur A/S 2.6 1.0 Erichsen & Horgen AS 3.0 1.0 Ingeniørrmaet Malnes og Endresen AS 2.1 0.8 Nordland Teknikk AS 1.7 0.4 Rao male/female Multiconsult ASA 1.0 Multiconsult Norge AS 1.1 Multiconsult Polska Sp. z o.o. 1.3 Multiconsult UK Ltd 2.4 Iterio AB 1.0 Multiconsult Asia Pte Ltd N/A LINK Arkitektur AS 1.1 LINK Arkitektur AB 1.1 LINK Arkitektur A/S 1.0 Erichsen & Horgen AS 1.1 Ingeniørrmaet Malnes og Endresen AS 1.1 Nordland Teknikk AS 1.5 Multiconsult Norge AS analyses gender pay gap and other variables on a yearly basis, based on public statistics in the yearly salary review. All signicant dierences are analysed and checked to identify potential risks of discrimination. As per industry standard, Multiconsult Norge AS largely bases the annual wage settlement on the number of years of expe- rience since graduation. This is in turn compared to the sta- tistics of Consulting Engineers’ Association (NO: Rådgivende Ingeniørers Forening, RIF) based on location and experien- ce/graduation. Employees’ adjustments are reviewed by their manager to ensure that men and women with equal roles and responsibilities are equally paid. Men in Multicon- sult Norge AS are above average pay compared to national RIF-statistics. Women are almost at average pay compared to national RIF-statistics, with a score of 99.6 per cent. Mul- ticonsult Norge AS has started a process of classifying posi- tions and is going through all employees to ensure they have the correct placement. A portion of the wage settlement for 2021 was marked for adjusting salaries based on these up- dated placements. Once the classication is nalised it will make comparison between roles on equal level within Multi- consult Norge AS easier. This will enable Multiconsult Norge AS to ensure that there is no salary discrimination on the grounds of gender, pregnancy, maternity leave, nationality, or language. In the 2021 salary adjustment process, women on avera- ge received a higher salary increase than men. A salary comparison between men and women shows that on ave- rage men were paid 8.95 per cent (11.6 per cent) more than women during 2021. Given that Multiconsult Norge AS has not completed the classication of positions and placement of employees in this classication, the wage dierence does not reflect management level, age distribution, education background etc. Multiconsult does not have any involunta- rily part-time labour, all employees are hired based on equ- ality in 100 per cent positions. Employees hired on less than 100 per cent positions, have decided this voluntarily. All employees, whether full-time, part-time or temporary employees in Multiconsult Norge AS are covered by occupa- tional injury insurance and travel insurance that covers tra- vel performed during working hours. Other insurance sche- mes apply to permanent employees who hold a position of at least 20 per cent. The same applies to pension savings. At Multiconsult Norge AS, a total of 193 employees have ta- ken parental leave in 2021, which amounts to 2 721 weeks in total. The average number of weeks for females on parental leave was 18.3 weeks, while the same gure for men was 10.5 weeks. According to policy employees on parental leave are included in the annual salary adjustment. Multiconsult Norge AS does not collect information on em- ployee’s ethnicity, sexual orientation, religion, or belief. If employees believe they are unfairly treated they can report this through the internal reporting system. A total of 3.8 per cent of employees in Multiconsult Norge AS had a native language other than Norwegian as of 31 December 2021, with a total of 18 dierent languages being represented. Multiconsult Norge AS wants to ensure that employees from dierent countries are not experiencing discrimination in the workplace. Thus, the subsidiary plans to conduct salary comparisons between employees who have a native language other than Norwegian/employees who are non-Norwegian citizens and employees whose native lan- guage is Norwegian/are Norwegian nationals. BARGAIN AGREEMENTS AND UNION MEMBERSHIP A signicant number of the Multiconsult group’s employe- es are union members. Therefore, working conditions and terms of employment are regulated by one or more colle- ctive bargaining agreements. In the subsidiaries where there are union members, the employees not covered by collecti- ve bargaining agreements are subject to the same working conditions and terms of employment as the union members. GOVERNANCE The Multiconsult ASA board of directors and executive ma- nagement team review, monitor and discuss safety, security and sustainability issues and risks. Sustainability includes integrity, environmental, social issues and human rights. In Multiconsult’s materiality assessment the following topics were found to be the ones where Multiconsult made the most signicant impact: Influence on business partners, influence on policy makers and regulations. For the 2021 reporting, in- fluence on policy makers and regulations is highlighted. The chief executive ocer is responsible for Multiconsult’s management actions related to sustainability, delegated to the chief executive ocer by the board of directors. The board of directors and executive management teams are in- formed at a minimum yearly with respect to the above sub- jects. If any issues are deemed to be of very high severity, an immediate notication is given, as dened in the existing re- porting instructions. During 2021 Multiconsult has had zero issues that were deemed to be of very high severity. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 74 75MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 The chief executive ocer has delegated the overall respon- sibility to follow up how the Multiconsult group’s activities have an impact on the employees to the executive vice pre- sident for human resources and communication. The overall day-to-day responsibility for sustainability is delegated to the executive vice president for Region Oslo. Sustainability is discussed in board of directors’ meetings either as integral parts of strategy and investment discus- sions or as separate topics. In the board of directors’ annual evaluation of its own work and competence, climate change capabilities and knowledge are areas of interest for the bo- ard of directors going forward. Multiconsult has a policy board, that evaluates and give ad- vice to the executive management team and board of dire- ctors with respect to group policy management. The policy board receives suggestions for new and revised group po- licies. The approved authority policy states that the code of conduct is approved at board of directors’ level and other group policies are approved by chief executive ocer, with a yearly information to board of directors. Group risk picture is discussed at executive management team and the board of directors are informed about the trends and development linked to the key risk developments. GOVERNANCE – BUSINESS BUSINESS ETHICS AND COMPLIANCE PROGRAM Multiconsult is a Norwegian company with an international business and is conducting assignments in parts of the world where corruption is a high risk. The group strategy is to in- crease international assignments, and has strengthened the work on ethics and compliance throughout 2021 to support this ambition. For example, Multiconsult Norge AS experien- ced a renewed focus on the only Myanmar running project, due to the coup d'état 1 February 2021. The project has been stopped until democratic governing processes are reintro- duced in Myanmar. Multiconsult has a set of governing documents for corpora- te responsibility and conduct, as well as manuals and more specic guidelines for dierent areas such as anti-corrupti- on, competition law, responsible procurement, environment, health and safety, and human rights. (See chapter Sustaina- bility policies and certicates) The group’s commitment to conduct business in an ethical, socially responsible way and transparent manner has during the Covid-19 pandemic remained the same. It has maintai- ned an open dialogue on ethical issues, both for stakeholders such as employees, business partners and the community. Multiconsult recognise that the group’s work may have an impact on the advancement of human rights, and as such a high ethical standard is a priority wherever Multiconsult work or deliver services. A majority part of the group has been a signatory member of UN Global Compact since 2016, where the principles 1 and 2 are tied to human rights. Multiconsult ensure that the workplace is inclusive and engage employ- ees to act. CODE OF CONDUCT The code of conduct 7) sets out the commitment and require- ments for how Multiconsult do business. It applies to the em- ployees, board of directors and sub-contractors. Employees are trained on how to apply the code of conduct in their daily work and bi-annually they are required to conrm their un- derstanding and compliance with the code of conduct. The group expect its suppliers to act in a way that is consistent with Multiconsult’s code of conduct and engage with them to help them understand the ethical requirements and how the group does business. If the expectations are not met, Multi- consult seek to take appropriate actions. GOVERNANCE – OPERATIONS INTEGRITY AND BUSINESS ETHICS A strong focus on business ethics and integrity is a prerequi- site for Multiconsult’s role and reputation as an independent and trusted advisor and consultant. The risk picture is constantly changing within the project portfolio as the group frequently meets with clients, vendors, and business partners. The group has a business ethics and compliance program, which seeks to ensure awareness and competence in handling integrity risks across the group, with particular emphasis on anticorruption. The group’s compliance function is responsible for overse- eing the group’s code of conduct, anti-corruption program and Whistleblowing Portal, and for providing guidance and integrity due diligence-services when entering contract with business partners and monitor media of negative news (ad- verse media) during the contract period. Adherence to the code of conduct is followed up by the compliance function, supported by local compliance resour- ces and a dedicated ethics committee. Training programs for employees at all levels have been im- plemented since 2012. This ensure increased awareness of ethical dilemmas that employees are faced with during their employment and how to handle such dilemmas when expo- sed. For training purposes, a tool called “The Value Game” has been in use over the last years as a tool where parti- cipants increase engagement, sharing and interaction with respect to typical ethical dilemmas. Multiconsult governing documents are communicated to all new employees, and they are obliged to undergo indu- ction training at the start of their employment in one of the group’s subsidiaries. Business ethics is a key topic in the training, with both e-le- arning courses, presentations and discussions in groups. Induction training was given to about 150 new employees during 2021. In the event of new policies and procedures at group level, information is distributed to all employees through various communication platforms. This includes intranet articles, making policies available in management systems and key policies are a topic on internal meetings at various levels in the organisation. All assignments are obliged to evaluate relevant business ethical risks, and integrity due diligence is performed on all non-national new business partners or on contracts above a certain threshold for national new business partners be- fore entering into any commercial agreements. The number of integrity due diligences conducted have during the last three years been about 150 per year. Partners and subcon- tractors sign the group’s business partner declaration when entering into contract with one of the subsidiaries. Key em- ployees in the business partner’s organisation are also re- quested to sign the group’s Code of Conduct and complete Multiconsult’s dilemma training that focus on anti-corrupti- on and conflict of interest, including human rights. Compliance with these procedures is subject to internal au- dits on a regular basis. Two audits were conducted in 2021, conrming positive progress compared to previous years, but areas for further improvements are identied. Multiconsult work with several suppliers and subcontractors to support the subsidiaries businesses and deliver services and products to their clients. Suppliers and subcontractors are obliged to work according to Multiconsult’s stated busi- ness ethics - code of conduct. Formalisation of the obligation is done by signing of Multiconsult’s business partner decla- ration. In addition to a formalisation of business ethics requ- irements, Multiconsult conducts risk-based audits of suppli- ers and subcontractors ensuring that requirements are met. The basic principle is that Multiconsult’s HSE requirements are not violated by suppliers and subcontractors when they deliver services to Multiconsult. In 2021 two audits were con- ducted on supplier and often used subcontractor with focus on HSE and business ethics. During 2021, the group’s compliance function focused on the following activities to increase awareness and emphasise the overall focus on business ethics: • Revised and developed governing documents related to giving/receiving gifts, entertainment and hospitality, competition law and Whistleblowing • Further strengthening the use of the Business ethics and Compliance program in the group’s subsidiaries • Retraining of key employees in the group with respect to competition law. • Review of eLearning courses to ensure that they are up- to-date and relevant for the Group’s employees at all levels. • Improvement in business processes to ensure that relevant evaluations are done with respect to potential exposure (corruption, violation of laws, conflict of interests) that might result in a violation of code of conduct. For 2022, the Compliance Function will continue developing and improving the business ethics and compliance program, with emphasis on governing documents, training and impro- vement in the quality and eectiveness of the group’s busi- ness processes. WHISTLEBLOWER PORTAL To promote transparency, and as part of the compliance program, Multiconsult has established a Whistleblower Por- tal 8 and ensures that both internal and external stakehol- ders can report possible misconduct to the group’s compli- ance function. The portal stores and handles information in accordance with the requirements set forth in international privacy regulations and secure whistleblower’s right to stay anonymous, if needed, which is according to EU regulation on whistleblowing. Multiconsult has had the Whistleblower 7 https://www.multiconsultgroup.com/assets/Code-of-Conduct.pdf 8 https://multiconsult.whistleblowernetwork.net/frontpage Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 76 77MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Portal in operations for several years and had only to make minor changes with respect to enforcement of new EU law which went into eect in late 2021. Reporting of possible misconduct or other issues related to business ethics and compliance can also follow a more tra- ditional line of command reporting. In 2021, 45 cases were reported and 90 per cent were reported directly to group compliance ocer or to one of the subsidiaries’ local comp- liance ocers. The business ethics and compliance program has led to increased awareness and expertise in risk identication, pro-active risk management and improved control of risks associated with business partners as well as a climate for discussing and seeking advice regarding dicult situations and ethical dilemmas. DEVIATION AND IMPROVEMENT WORK Multiconsult have a deviation and improvement system, ba- sed on IT systems or excel sheets. The systems are designed for registration, case processing and follow-up of measures. Registration of cases provides a basis for learning and expe- rience sharing within the organisation and for continuous improvement work. Deviation and improvement systems can help set up decisions based on causal analysis to implement the appropriate measures and thus avoid repetition of de- viations and incidents. The systems can also help identify trends. The purpose is to improve the organisation's opera- tions and contribute to achieving the group’s objectives. Registration statistics are annually reported to the executi- ve management team and quarterly to the management of each subsidiary. Depending on the subsidiary, quarterly re- port is prepared, or the reporting takes place on an ongoing basis. The quarterly report in Multiconsult Norge AS inclu- des statistics and learning points based on cases reported in the previous quarter. In addition, important information and common learning points are shared via the intranet and in- ternal information screens. In 2019, 2020 and 2021, a total of 835, 716 and 740 cases respectively were registered in the Multiconsult group. Cases reported included ndings from internal audits. Continuous eorts are being made to streamline the use of the devia- tion and improvement systems and increase the number of reported cases This is done through contribution to research, business di- alogue, informing and engaging decision makers and social programmes. RESEARCH As a knowledge-based company, Multiconsult has both a desire and a responsibility to contribute its technical exper- tise and nancial resources to develop methods and techn- ology in partnership with other companies and stakeholders. The subsidiaries are actively involved in various national and international research program focused on the built en- vironment. Some of the research projects that Multiconsult Norge AS contributes in and that has a strong ESG motivation are: Klima 2050 Centre for Research-based Innovation (SFI) nanced by the Research Council of Norway and the con- sortium partners. The SFI status enables long-term rese- arch in close collaboration with trade and industry, as well as research partners aiming to strengthen Norway’s ability to innovate and improve its competitiveness within climate adaptation. Multiconsult group CEO Grethe Bergly is chair of the board. RESPONSIBLE BUSINESS CONDUCT Multiconsult business is concentrated around delivering project management, engineering, and architectural ser- vices to public and private clients. Multiconsult generally enter into contracts with business partners with high level of transparency in the process from a request for tender is received until a contract is signed. Integrity due diligences of our international business part- ners are done before entering contract. All business partners are continuously monitored during the business relationship. If a business relationship ends, and previous due diligence is older than two years, then a new due diligence is conducted. Multiconsult may decline to enter business relationships with potential business partners, either in the initial screening or when a more in-depth due diligence is conducted. On rare occasions existing business relationships are terminated due to negative business conduct development in the ope- rations of the business partners. When procuring products and services the subsidiaries ad- heres to the Procurement Policy. The Policy states that for all procurement Multiconsult shall evaluate environmental consequences and comply with requirements for sustaina- bility with emphasis on environmental impact and corpora- te responsibility. Adherence to the policy is a management responsibility, and internal audits are conducted annually to conrm such compliance. The group’s audit program, whistleblower portal, incident/ deviation systems along with organisational reporting stru- ctures seek to ensure that information is readily available for external stakeholders that requires information about Multi- conult’s impact on human and workers’ rights. Multiconsult’s subsidiaries are obliged to report to the group if any violation of laws and regulations has occurred. Either directly through line organisation and up to Executive Mana- gement or to Group Compliance Ocer. In 2021 Multiconsult Norge AS was ned due to an incident that occurred in 2018. No other nes due to violation of laws and regulations has been reported for the accounting year 2021. CORPORATE RESPONSIBILITY For Multiconsult, it is an obligation using the experience and competence of the group to promote sustainability, contri- buting to sustainable solutions and participate in the public space, showing how the impossible can be made possible. ZEN The research center for zero emission neighborhoods in smart cities (FME ZEN) shall develop solutions for the buil- dings and urban areas of the future that will help to bring about a zero emission society. To spread knowledge and best practice in sustainable buil- ding design, LINK Arkitektur AS, LINK Arkitektur AB and LINK Arkitektur A/S environmental team members are engaged with research at an international scale, in addition to, te- aching and disseminating activities at universities in Den- mark, Norway, and Sweden, and in many public conferences. LINK Arkitektur AS is active in research and development projects working on dening the state-of the-art of tomor- row. The R & D projects are conducted both as collaboration, e.g. together with Scandinavia’s biggest research institute SINTEF, or in-house in LINK’s environmental department with funding from the Norwegian state. STRATEGIC ESG PARTNERSHIPS Multiconsult is a member of several industry and members- hip associations. In some of these Multiconsult plays an active role by participating on the board of the organisation, based on the person’s role in Multiconsult. As this year is the rst year or reporting on the GRI standard, the list may not be complete. SUBSIDIARY NAME OF ORGANISATION ROLE Multiconsult Norge AS RIF (Consulting Engineers’ Association) Board member, vice chair Nordisk veiteknisk forening Board member Skift (Business Climate Leaders) Member Ingeniører Uten Grenser (Engineers Without Borders) Board member (Sponsor) NORWEA (Norwegian Wind Energy Association) Board member Solenergiklyngen (The Norwegian Solar Energy Cluster) Board member Norwegian Center for Circular Economy Board member International Centre for Hydropower Board member Regional and local business associations Board members in regio- nal and local association Klimapartner (Climate partners) Board Member in regional branches UN Global Compact Valued ESG-partnership LINK Arkitektur AS and Multiconsult Norge AS Norwegian Green Building Council Valued ESG-partnership LINK Arkitektur AB Swedish Green Building Council Valued ESG Partnership LFM30 Regional network for fossil free construction industry in Malmö) Leading working group Nordic Placemaking Talks Valued ESG Partnership LINK Arkitektur AS, LINK Arkitektur AB, LINK Arkitektur A/S Nordic Center for Sustainable Healthcare Valued ESG Partnership Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility PROJECT: HOPPET PRESCHOOL, GOTHENBURG - SWEDEN PHOTO: FELIX GERLACH 78 79 MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 INFLUENCE ON POLICY MAKERS Multiconsult has not made any contribution to political par- ties for 2021. As part of the group’s ambitions for corporate responsibility, the group is however actively contributing to the regulatory and policy development on key sustainability topics for the industry. Multiconsult Norge AS has contributed to several public he- arings on regulations and policy development and in indivi- dual meetings and seminars with the authorities. The sub- sidiary has contributed on national media platforms, and in the construction industry related media and fora. Through the strategic ESG partnerships, the group has mo- bilised for a series of political topics in line with its overall ESG policies. Some examples: Input in favour of increas- ing maintenance of public infrastructure, input in favour of strengthening to a Paris proof level the energy demands and indirect emissions in the building code, input in favour of legislation mandating municipal plans for surface water management, higher green ambitions in public procurement, mandating more extensive eld work in impact analysis for energy projects and stricter regulation on total waste gene- rated in construction projects. SOCIAL RESPONSIBILITY Following up on Multiconsult’s corporate social responsibility policy, the group has a tradition for engagement in solidarity work as an element in the group’s corporate social respon- sibility. Multiconsult Norge AS entered in 2021 into a new three- year agreement to support the organisation Engineers Wit- hout Borders both nancially with NOK 200 thousand and in its day-to-day operations, as well as collaborating in proje- cts. In 2021 no sta members went on projects with Engine- ers Without Borders. Each year Multiconsult Norge AS donates the Christmas gift to a charity, selected through a nomination and voting process among the employees. In 2021 the Christmas gift of NOK 250 thousand was donated to the charity Team Rynke- by God Morgen and their work with the Norwegian Children Cancer Association (NO: Barnekreftforeningen). LINK Arkitektur AS has donated NOK 20 thousand to the Foundation Giving Hope To a Child. LINK Arkitektur AB made these donations during 2021; Barncancerfonden SEK 25 thousand, Läkare utan grän- ser SEK 13 thousand. And donations to WWF, BRIS and Hjärt-Lungfondena of SEK 4 thousand each. Iterio AB has been a partner of Yennenga Progress, an or- ganisation that works for non-religious and apolitical purpo- ses to ght poverty and create democratic welfare societies. The organisation is funded by voluntary donations. Since 2017, Iterio AB has supported the organisation nancially and with some consulting expertise. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Sustainability and corporate responsibility 80 81MULTICONSULT ANNUAL REPORT 2021 128 128 129 130 131 132 132 133 Note 1 - General information and basis for the pre- paration of the consolidated nancial statements Note 2 A - Signicant accounting policies Note 2 B - Signicant judgements in the application of group accounting policies and accounting estimates Note 3 - Financial risk management Note 4 - Business combinations Note 5 - Segments Note 6 - Revenue from contracts with customers and contract balances Note 7 - Research and development Note 8 - Other operating expenses Note 9 - Employee benet expenses, number of employees, remuneration, loans to employees etc. Note 10 - Financial items Note 11 - Taxes Note 12 - Pensions Note 13 - Receivables, work in progress and prepaid expenses Note 14 - Intangible assets and goodwill Note 15 - Property, plant and equipment Note 16 - Cash and cash equivalents, restricted cash and restricted funds Note 17 - Associated companies and joint arrangements Note 18 - Leases 88 88 95 96 102 104 107 109 110 111 116 116 120 121 122 124 125 125 126 Note 19 - Other current liabilities Note 20 - Provisions, disputes and contingent liabilities Note 21 - Guarantees, pledges and securities provided Note 22 - Shareholder information Note 23 - Related parties Note 24 - Earnings per share and dividends Note 25 - Events after the reporting period Alternative performance measures (APM) 82 83 84 85 86 87 88 81 80 PROJECT: HIGHWAY 3/25, COUNTY INNLANDET ILLUSTRATION: SKANSKA CONSOLIDATED ANNUAL ACCOUNTS Consolidated statement of prot or loss Consolidated statement of comprehensive income Consolidated statement of nancial position - assets Consolidated statement of nancial position – equity and liabilities Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the consolidated nancial statements Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 82 83MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Amounts in NOK thousand Note 2021 2020 Prot for the period 234 666 249 209 Other comprehensive income Remeasurement of dened benet obligations 12 147 228 Income taxes 11 (32) (50) Total items that will not be reclassied subsequently to prot or loss 114 178 Currency translation dierences (13 730) 12 640 Total items that may be reclassied subsequently to prot or loss (13 730) 12 640 Total other comprehensive income for the period (13 616) 12 817 Total comprehensive income for the period 221 050 262 026 Attributable to: Owners of Multiconsult ASA 221 050 262 026 CONSOLIDATED STATEMENT OF PROFIT OR LOSS Amounts in NOK thousand, except earnings per share Note 2021 2020 Operating revenues 5, 6 4 284 666 4 186 161 Expenses for sub-contractors and disbursements 480 930 525 225 Net operating revenues 3 803 736 3 660 936 Employee benet expenses 9, 12 2 811 409 2 660 077 Other operating expenses 8 449 482 402 174 Operating expenses excluding depreciation and amortisation 3 260 892 3 062 250 Operating prot before depreciation and amortisation (EBITDA) 542 845 598 686 Depreciation and amortisation 14, 15, 18 193 981 197 639 Impairment 18 - 30 000 Operating prot (EBIT) 348 864 371 047 Share of prot from associated companies and joint ventures 17 204 (2 269) Financial income 10 20 432 22 692 Financial expenses 10 58 335 62 119 Net nancial items (37 903) (39 427) Prot before income taxes 311 166 329 350 Income tax expenses 11 76 500 80 141 Prot for the period 234 666 249 209 Attributable to: Owners of Multiconsult ASA 234 666 249 209 Earnings per share: Basic 24 8.67 9.25 Diluted 24 8.67 9.25 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 84 85MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Amounts in NOK thousand Note 31.12.2021 31.12.2020 EQUITY AND LIABILITY Equity Share capital Treasury shares Share premium 22 13 715 (5 126) 161 754 13 486 (5 256) 77 758 Total paid in capital 170 343 85 988 Other reserves Retained earnings (245 068) 924 848 (217 993) 905 619 Total other equity 679 779 687 627 Total shareholders' equity 850 123 773 615 Non-current liabilities Pension obligations Deferred tax Provisions Non-current interest-bearing liabilities Non-current lease liabilities 12 11 20 3 18 5 403 12 571 24 712 180 000 690 771 6 474 11 512 31 222 - 733 035 Total non-current liabilities 913 457 782 243 Current liabilities Trade payables Prepaid revenues Current tax liabilities Public duties payable Current lease liabilities Other current liabilities 3 6 11 3 18 3, 19 134 725 141 749 71 699 406 049 139 037 376 093 106 436 155 656 79 053 354 779 131 499 334 905 Total current liabilities 1 269 351 1 162 328 Total liabilities 2 182 808 1 944 571 TOTAL EQUITY AND LIABILITIES 3 032 931 2 718 185 CONSOLIDATED STATEMENT OF FINANCIAL POSITION – EQUITY AND LIABILITIES The board and CEO of Multiconsult ASA – Oslo, 16 March 2022 Bård Mikkelsen Chair of the board Grethe Bergly CEO Hanne Rønneberg Director Rikard Appelgren Director Torben Wedervang Director Gunnar Vatnar Director Sverre Hurum Director Tove Raanes Director Karine Gjersø Director Amounts in NOK thousand Note 31.12.2021 31.12.2020 ASSETS Non-current assets Deferred tax assets Intangible assets Goodwill Property, plant and equipment Right-of-use assets 11 14 4, 14 15 18 33 351 25 187 846 659 110 303 766 870 34 023 20 913 454 692 103 640 806 081 Total non-current non-nancial assets 1 782 369 1 419 347 Investments in associated companies and joint ventures Assets for reimbursement provisions Other non-current nancial assets and shares 17 20 3, 16 10 302 18 302 23 452 10 227 23 172 20 230 Total non-current assets 1 834 424 1 472 977 Current assets Trade receivables Work in progress Other current receivables and prepaid expenses 3, 6, 13 3, 6, 13 3, 13 730 881 225 021 86 439 626 726 255 894 85 154 Total receivables and prepaid expenses 13 1 042 341 967 774 Cash and cash equivalents 3, 16 156 165 277 435 Total current assets 1 198 506 1 245 209 TOTAL ASSETS 3 032 931 2 718 185 CONSOLIDATED STATEMENT OF FINANCIAL POSITION - ASSETS Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 86 87MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 CONSOLIDATED STATEMENT OF CASH FLOWS + are cash increasing and - are cash reducing eects Amounts in NOK thousand Note 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Prot before income taxes 311 166 329 350 Income taxes paid during the period (86 902) (12 769) Interest lease liability 18 32 062 34 667 Interest expense interest-bearing liability 927 5 851 Depreciation and amortisation 14, 15 49 134 51 945 Depreciation right-of-use assets 18 144 846 145 694 Impairment right-of-use assets - 30 000 Results from associated companies and joint ventures 17 (204) 2 269 Other non-cash prot and loss items (12 834) - Subtotal operating activities 438 195 587 007 Changes in working capital 1) 20 434 80 690 Net cash flows from operating activities 458 629 667 697 CASH FLOWS FROM INVESTING ACTIVITIES: Net payments on acquisition and sale of property, plant and equipment and intangible assets 14, 15 (40 681) (25 187) Proceeds/payments related to joint ventures and jointly controlled entities (6 999) - Change in non-current nancial assets, restricted funds 1) 16 (2 144) (2 649) Net cash eect of business combinations 4 (314 190) - Net cash flows from investing activities (364 015) (27 836) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds on interest-bearing liabilities 3 180 000 172 000 Instalments on interest-bearing liabilities - (350 400) Paid interest on interest-bearing liability (927) (5 851) Instalments on lease liabilities 18 (140 523) (134 070) Paid interest on lease liability 18 (32 062) (34 667) Dividends paid 24 (215 437) (53 626) Cost of share issuance (140) - Purchase treasury shares (employee share purchase and bonus programme) (64 874) (52 805) Sale treasury shares (employee share purchase and bonus programme) 61 897 21 919 Net cash flows from nancing activities (212 066) (437 499) Foreign currency eects on cash and cash equivalents (3 818) 1 516 Net change in cash and cash equivalents (121 270) 203 877 Cash and cash equivalents at the beginning of the period 16 277 435 73 558 Cash and cash equivalents at the end of the period 16 156 165 277 435 1) Changes in working capital and restricted funds are adjusted for opening balance in acquired entities at transaction date. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Attributable to equity holders of Multiconsult ASA Amounts in NOK thousand Share capital Treasury shares Share premium Total paid in capital Retained earnings Employee share purchase programme Remea- surement pensions Currency translation dierences Total equity 31 December 2019 13 486 (1) 77 758 91 241 710 035 (24 565) (203 183) 7 882 581 413 Dividend Treasury shares Employee share purchase programme Comprehensive income - - - - - (5 255) - - - - - - - (5 255) - - (53 626) - - 249 209 - (3 232) (7 712) - - - - 178 - - - 12 640 (53 626) (8 487) (7 712) 262 026 31 December 2020 13 486 (5 256) 77 758 85 988 905 619 (35 509) (203 005) 20 522 773 615 Share issue Dividend Treasury shares Employee share purchase programme Comprehensive income 230 - - - - - - 129 - - 83 995 - - - - 84 226 - 129 - - - (215 437) - - 234 666 - - (3 106) (10 354) - - - - - 114 - - - - (13 730) 84 226 (215 437) (2 976) (10 354) 221 050 31 December 2021 13 715 (5 126) 161 754 170 343 924 848 (48 969) (202 891) 6 791 850 123 86 See note 9 for information about treasury shares and employee share purchase programme. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 88 89MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Transactions in foreign currencies are translated into the functional currency at the exchange rates prevailing at the dates of the transa- ctions. Currency gains and losses arising on the payment of such transactions and on translation of monetary items in foreign curren- cies at the exchange rates prevailing at the end of the reporting peri- od, are recognised in prot or loss as nancial items. For companies with a functional currency other than Norwegian kro- ner, income and expense items are translated based on the average exchange rates, and assets and liabilities are translated using the exchange rates prevailing at the end of the reporting period. Exchange dierences are recognised in other comprehensive income. Revenue Revenue is generated by delivering consulting services. The group provides a range of services, including multidisciplinary consulting and design, project engineering and management, verication, in- spection, supervision and architecture – both in Norway and abro- ad. See note 5 segments for a more detailed description of services oered within seven business areas. See also note 6 for revenue from contracts with customers and contract balances. Revenue is measured based on the consideration specied in a contract with a customer. Revenue is recognised when a customer obtains control over a good or service, which could be at a point in time or over time. The group's revenue is generated from rendering of services, which is recognised over time. The group's rendering of services consists of agreements that are either time-based, time-based with a cap, or xed price. The vast majority of contracts in terms of transaction price are time-based, i.e. the group earns revenue per hour worked. Contracts which are ti- me-based with a cap, or xed price, are minor compared to the total. Multiconsult has evaluated that for some of the services, for exam- ple construction management and coordination, the customer si- multaneously receives and consumes the benets provided by its performance as it performs, and therefore revenue is recognised over time. Other services are to a large extent tailored to the customer and has no alternative use for Multiconsult. The majority of contracts has clauses that secures that Multiconsult has enforceable right to payment for performance completed to date if the customer should terminate a contract for other reasons than failure by Multiconsult to deliver under the contract. Consequently, Multiconsult has de- termined that the customer controls all the work in progress as the services are provided, and revenue is recognised over time. A few contracts may have deviating contract clauses, but these are im- material in relation to the group's total revenues. Progress in satisfaction of a performance obligation is normally es- timated as hours incurred as a percentage of expected total hours and milestones in the project. It is continuously evaluated if hours incurred contribute to progress in the project and the total hours expected to be incurred to generate progress. As the main cost and eorts in the satisfaction of the performance obligations are hours incurred, for own employees and subcontractors, the group believes this method provides a faithful depiction of the transfer of the ser- vices. The total scope is evaluated on an on-going basis. Costs are recognised as incurred. Under IFRS 15, revenue shall be recognised to the extent that it is highly probable that a signicant reversal in the amount of cumula- tive revenue recognised will not occur. There are often discussions with the customer in relation to the number of hours that can be charged to the customer, consequently this is regarded as variable consideration. The company has established processes for ongoing evaluations and estimation of how much revenue can be recognised for each contract, primarily based on expected value, and on 31 De- cember 2021 and 31 December 2020 it has not identied need for additional constraint of accumulated revenues. When it is probable that a project will incur a loss (remaining total direct costs exceed remaining total revenue), the estimated loss is recognised immediately. Direct costs include predominantly costs for own personnel and sub-contractors. As the group has few pro- jects with xed price or with a cap, provisions for onerous contracts are limited. Invoices are issued according to contractual terms and are usually payable within 30 days. Invoiced amounts are presented as trade receivables. Un-invoiced amounts (contract assets) are presented as work in progress and is related to work performed but not billed at the reporting date. Contract liabilities are presented as prepaid revenues. For each contract it is presented a net amount for work in progress or prepaid revenues. In working partnerships not organised as separate legal entities, and where the group is the project manager with no overall responsibility for the engagement, the group invoices the client and subsequently pays the fee to the other parties for the work performed by them. The group only recognises its own share of revenue and expenses in such arrangements (refer also to the description above). Revenues are disaggregated on business areas and geography, see notes 5 and 6. Interest and dividends received Interest income that reflects the eective return on an asset is re- cognised as income over the period earned and classied as nancial income in the statement of income. Dividends received on investments are recognised as income when the group's right to receive payment has been established. Dividends from investments that are recognised using the equity method are recognised as a reduction of the invest- ment. Classication of current and non-current items An asset is classied as current when it is expected to be realised or sold, or to be used in the group's normal operating cycle or falls due or is expected to be realised within 12 months after the end of the repor- ting period. Other assets are classied as non-current. Liabilities are classied as current when they are expected to be settled in the nor- mal operating cycle of the group, are held for trading, are expected to be settled within 12 months of the end of the reporting period, or if the group does not have an unconditional right to postpone settlement for at least 12 months after the reporting date. Provisions for obligations and assets for reimbursement are classied as non-current. Derivati- ves are classied as current. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Multiconsult group (“Multiconsult” or “the group”) comprises Multi- consult ASA (“the parent company”) and all subsidiaries and asso- ciated companies. Multiconsult ASA is a Norwegian Public limited liability company. The shares of the company were listed on Oslo Stock Exchange on 22 May 2015. The company's head oce is located in Nedre Skøyen vei 2, 0276 Oslo. The group are among the leading suppliers of consultancy and de- sign services in Norway and the Nordic region. The group has some activity and subsidiaries outside the Nordic region, including subsi- NOTE 1 GENERAL INFORMATION AND BASIS FOR THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS diaries Multiconsult Polska, Multiconsult UK and Multiconsult Asia. The principal activities of the group are described in note 5 Seg- ments. These consolidated nancial statements were approved by the board of directors on 16 March 2022 for adoption by the Annual General Meeting on 7 April 2022. The group prepares the consolidated nancial statements in accor- dance with International Financial Reporting Standards as adopted by the EU (IFRS) and the Norwegian Accounting Act. References to "IFRS" in these nancial statements mean IFRS as adopted by the EU. Basis of preparation The consolidated nancial statements have been prepared based on the historical cost basis, except for derivatives and pension assets that are measured at fair value, and pension liabilities that are measured at present value. The consolidated nancial statements are presented in Norwegian kroner (NOK). Amounts are rounded to the nearest tho- usand, unless stated otherwise. As a result of such rounding, amounts and percentages presented may not add up to the total. Standards, interpretations and amendments implemented in 2021 Several limited scope amendments and interpretations eective from 1 January 2021 had no material impact on the group. This include but is not limited to amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 following the Interest Rate Benchmark Reform phase 2. The group had no material impact following the issuing and implementation of Covid-19-Related Rent Concessions (Amendment to IFRS 16) beyond 30 June 2021. Consolidation principles, investments accounted for in accordan- ce with the equity method and working partnerships The consolidated nancial statements incorporate Multiconsult ASA and companies that Multiconsult ASA (directly or indirectly) control (the group). Control is achieved when the group is exposed or has rights to variable returns from its involvement with a company in which it has invested and has the ability to use its power to aect its returns from this company. All subsidiaries are 100 per cent owned and there are no non-controlling interests. The consolidated nancial statements have been prepared using uniform accounting policies. All material transactions and balances between group entities have been eliminated. NOTE 2 A SIGNIFICANT ACCOUNTING POLICIES Shares in subsidiaries are eliminated in the consolidated nancial statements in accordance with the acquisition method. This entails that the consideration, as well as the acquired entity's assets and liabilities (with some exceptions as determined by IFRS 3 Business Combinations), are measured at fair value on the date of acquisiti- on, and any excess consideration is classied as goodwill. Acquisiti- on-related costs are recognised in prot or loss as incurred. Investments in associated companies and joint ventures over which the group exercises signicant influence or joint control, are acco- unted for using the equity method. Refer to note 17 for more infor- mation. The group enters into working partnerships in certain projects where parties collaborate to oer a joint deliverable. Each participant is responsible for and has rights to the fee from its part of the delive- rables (agreements related to project collaboration). The individual parties utilise their resources using employees and sub-contractors. Some of these arrangements are considered to be joint operations within the scope of IFRS 11, and for which the group recognises its share of income and expenses, and its own assets and liabilities. Certain arrangements are not jointly controlled. Such activities are recognised on a line-by-line basis in accordance with the group's share, similar to joint operations. There are no signicant dieren- ces in the group's accounting for activities in arrangements without limited liability, whether within the scope of IFRS 11 or not. Foreign currencies The nancial statements of the individual companies in the group are measured in the currency which is predominantly used in the economic environment in which the company operates (functional currency). The consolidated nancial statements are presented in Norwegian kroner (NOK), which is the functional currency and the presentation currency of the parent company. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 90 91MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 would not consider otherwise, or it is probable that the debtor will enter bankruptcy or other nancial reorganisation, or the disappea- rance of an active market for a security because of nancial dicul- ties. See note 3 for a description of recognition of ECLs. Loss allowances are deducted from the gross carrying amount of the nancial asset. The gross carrying amount of a nancial asset is written o when the group has not reasonable expectations of recovering a nancial asset in its entirety or a portion thereof. Re- ceivables are written o if the customer goes bankrupt, collection by a debt collector has been unsuccessful for a period and in other concrete cases. The group expects no signicant recovery from the amount written o. However, nancial assets that are written o could still be subject to enforcement activities. Financial liabilities The group has nancial liabilities measured at amortised cost and fair value through prot or loss. Financial liabilities at amortised cost comprise largely trade payable, other current liabilities and in- terest-bearing liabilities. These obligations are initially recognised at fair value less transaction costs, and subsequently measured at amortised cost through using the eective interest method. Financial liabilities at fair value through prot or loss consist of de- rivatives. The company can use foreign currency forward contracts and interest rate swaps in order to hedge future cash flows. The company does not use hedge accounting. Derivatives are measured at fair value. Gains and losses arising as a result of changes in fair value are recognised in the statement of income as nancial income and nancial expenses. Derivatives are recognised on a gross ba- sis as liabilities when the fair value is negative, as long as the group does not have a legal right to and intention of settling the contracts on a net basis. Embedded derivatives An embedded derivative shall not be separated from the host con- tract and recognised as a derivative if the economic characteris- tics and the economic risks of the embedded derivative are close- ly related to the economic characteristics and the economic risk of the host contract. The company has certain cross border sales contracts in a currency that is not the functional currency of either of the parties to the contract. The company has determined that the currency used in the relevant contracts is a currency frequently used in contracts related to acquisition or disposal of non-nancial assets in the economic environment in which the transaction takes place, and has therefore not separated a currency derivative. Cash and cash equivalents Cash and cash equivalents include cash, bank deposits and other cash equivalents with a maturity of less than three months at the date of acquisition. Restricted cash Restricted cash is cash with restrictions above 3 months. Restricted cash is classied as non-current when the restriction is more than 12 months and is presented as non-current nancial asset in the balance sheet. Provision for obligations Provisions for obligations such as restructuring, onerous contracts, project liabilities and legal claims are recognised when the group, as a result of a past event, has an existing legal or constructive obli- gation, it is probable that the group will be required to settle the obligation, and the amount can be measured reliably. Provisions are measured at management's best estimate of the expenditure re- quired to settle the obligation at the reporting date. The estimate is made based on the actual circumstances related to each individual item. Provisions for project liabilities are measured at the expected cost to settle the obligation. A reimbursement asset is recognised if the company is covered for losses incurred through an insurance company and it is virtually certain that the company will receive compensation. A reimbursement asset reduces the net cost recog- nised in the statement of income. Pensions The group has primarily dened contribution pension plans. For dened contributions plans, the group pays contributions to pri- vate, administered insurance plans for pensions on a statutory, con- tractual or voluntary basis. The group has no additional obligations after the contributions have been paid. Contributions to dened con- tribution plans are expensed as incurred. LINK Arkitektur AB partici- pate in a dened benet multi-employer plan that is accounted for as a dened contribution plan. The group has no early retirement plans. Remaining dened benet pension plans are primarily an individual unfunded agreement in Multiconsult Norge AS and a funded plan in LINK Arkitektur AS. Pension obligations for dened benet plans are estimated on an annual basis by independent actuaries. See note 12. Income tax Assets and liabilities related to current tax payable are measured at the amount expected to be received from or paid to the taxation aut- horities. Deferred tax assets and liabilities are calculated based on the liability method, including all temporary dierences between the carrying amounts and tax bases of assets and liabilities in the consoli- dated nancial statements, including losses carried forward. Deferred tax assets and liabilities are not recognised if the temporary dierence arises from the initial recognition of goodwill. For investments in sub- sidiaries, associated companies or joint ventures, deferred tax liabi- lities are not recognised for taxable temporary dierences when the group is able to control the timing of reversal of temporary dierences and it is probable that the temporary dierence will not reverse in the foreseeable future. Similarly, deferred tax assets are only recognised for such investments if it is probable that the temporary dierence will reverse in the foreseeable future and that sucient taxable income will be available to allow the asset to be recovered. Deferred tax assets are recognised to the extent that it is probable that the tax assets will be utilised. Tax rates that are enacted or sub- stantially enacted at the end of the reporting period and undiscounted amounts are used. Deferred tax assets and liabilities are recognised net when there is a legal right to oset payable tax assets and liabi- lities, and the group is able to and intends to settle payable income tax net. The group considers expenses as tax deductible and income as not taxable based on interpretation of applicable legislation and regu- Property, plant and equipment Property, plant and equipment are recognised at cost less accumu- lated depreciation. Cost of acquisition includes costs directly attri- butable to the acquisition of the xed asset. Subsequent expen- diture is added to the carrying value of the asset or is recognised separately when it is probable that future economic benets related to the expenditure will flow to the group, and the cost can be measu- red reliably. The carrying amount related to replace parts is expen- sed. Other repair and maintenance costs are recognised in prot or loss in the period during which the cost is incurred. Property, plant and equipment are depreciated on a straight-line basis. The cost of acquisition of property, plant and equipment is depreciated to their expected residual value, which in general is estimated to be nil. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period and changed if necessary. When the carrying amount of an item of property, plant and equipment is higher than its estimated recoverable amount (the higher of fair value less costs to sell and value in use), the carrying amount is reduced to the recoverable amount and recognised as impairment in the statement of income. Gains and losses on disposal of property, plant and equipment are recognised in the income sta- tement as the dierence between the sales price and the carrying amount. Intangible assets Intangible assets consist mainly of standard software, licenses and ERP system. Intangible assets are recognised at cost of acquisition less amortisation. Intangible assets are amortised on a straight-line basis to an estimated residual value of nil. Order backlog arising upon a business combination is amortised over its estimated useful life. When the carrying amount of an intangible asset is higher than its estimated recoverable amount, the carrying amount is reduced to the recovera- ble amount and recognised as impairment in the statement of income. Goodwill Goodwill arising upon a business combination is not amortised. Good- will does not generate cash flows that are independent of other assets or groups of assets, and is allocated to the cash-generating units that are expected to benet from the synergies of the combination that gave rise to goodwill. Cash-generating units to which goodwill has been allocated are reviewed for impairment on an annual basis, or more frequently if there are indications of impairment. If the recovera- ble amount of the cash-generating unit is less than its carrying value, the impairment loss is allocated rst to reduce the carrying value of goodwill and then to the other assets in the cash-generating unit pro rata based on the carrying amount of each asset in the unit. The car- rying value of individual assets is not reduced below nil. An impairment loss recognised for goodwill is not reversed in subsequent periods if the recoverable amount of the cash-generating unit increases. Any impairment is recognised as part of impairment in the statement of income. Cash-generating units A cash-generating unit (CGU) is the smallest identiable group of assets that generates cash inflows that are largely independent of cash inflows from other assets or groups of assets. In order to iden- tify whether cash inflows from an asset (or a group of assets) are independent of cash inflows from other assets (or groups of assets), management assesses various factors, including how operations are monitored, e.g. based on service- or product areas, businesses or geographical areas. Each CGU or group of CGUs to which goodwill has been allocated represent the lowest level in the entity where goodwill is monitored for internal management purposes. The group of CGUs are in all instances no larger than an operating segment as dened in IFRS 8 Operating Segments. Financial assets and liabilities Financial assets and nancial liabilities are recognised in the group’s statement of nancial position when the group becomes a party to the contractual provisions of the instrument. Financial assets and nancial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acqui- sition or issue of nancial assets and nancial liabilities (other than nancial assets and nancial liabilities at fair value through prot or loss) are added to or deducted from the fair value of the nanci- al assets or nancial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of nancial assets or nancial liabilities at fair value through prot or loss are re- cognised immediately in prot or loss. Financial assets IFRS 9 contains three principal classication categories for nancial assets: measured at amortised cost, fair value through other compre- hensive income (FVOCI) and fair value through prot or loss (FVTPL). The classication of nancial assets is generally based on the busi- ness model in which a nancial asset is managed and its contractual cash flow characteristics. All nancial assets are recognised initially at fair value, with addition of transaction costs for assets not at FVTPL. The group's nancial assets are primarily cash and cash equivalents, trade and other receivables and work in progress (contract assets). Based on the nature of these assets and how they are managed, the group has evaluated that these qualify for classication as measured at amortised cost. These assets are subsequently measured at amortised cost using the eective interest method. The amortised cost is reduced by impair- ment losses. Financial assets at fair value through prot or loss consist of derivati- ves when the fair value is positive. Impairment of nancial assets The group recognises loss allowances at an amount equal to lifetime Expected Credit losses (ECL) on receivables and work in progress. ECLs are probability-weighted estimates of credit losses. Credit los- ses are measured as the present value of all cash shortfalls (i.e. the dierence between the cash flows due to the group in accordan- ce with the contract and the cash flows that the group expects to receive). ECLs are discounted at the eective interest rate of the nancial assets. The group assesses at each reporting date whether nancial asset carried at amortised cost are credit impaired. A nancial asset is credit impaired if one or more events that have a detrimental impact on the estimated future cash flows of the nancial asset have oc- curred. Evidence of credit impairment includes the following obser- vable data: signicant nancial diculty of the debtor, a breach of contract such as a default or being more than 60 days past due, the restructuring of a receivable by the group on terms that the group Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 92 93MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 riods covered by an option to extend the lease if the lessee is reasona- bly certain to exercise that option, and periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. The group has several contracts containing options for extension of various length. If the lease period is medium long, the group has evaluated that it is reasonably certain that the group will exercise an option to extend/not exercise the option to terminate the contract. Medium long term is re- garded to be 4-5 years. This is relevant when there are no other facts and evaluations suggesting the opposite, for example if it is uncertain- ty if we will continue business in the relevant area. For longer terms, 5-8 years, we evaluate if there are obvious economic incentives to renew or other statements that indicates renewal. If there are no such, we normally are not able to conclude that it is reasonably certain that we will renew/extend. For longer periods, above 8 years, we will nor- mally not be able to conclude that we are reasonably certain to extend. For some contracts there is a long non-cancellable period for the main contract, and a renewal option for a smaller contract (e.g. parking), and in absence of other information the group expect that the options will be utilised up to the same lease term as the main contract. Interest rate Upon initial measurement of the lease liability, the lease payments are discounted using the interest rate implicit in the lease. For many of the lease contracts entered into by the group, this rate cannot be readily determined, and the group’s incremental borrowing rate is used. The group has created a model for the incremental borrowing rate. The model includes the Risk-Free Rate and a country risk for the country where the contract originates. Further, the model considers a govern- ment bond for 0-3 years, 3-5 years and 5-10 years, where the durati- on reflect the contract terms. Lending cost and nancial spread is also included in the model. The model is tailored to the asset classes, which for the group is property and cars. The calculation of the incremental borrowing rate is updated annually. Impairment The group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identied impairment loss as described in the ‘Property, Plant and Equipment’ policy. The group as lessor The group has not entered into any lease agreements as a lessor. Dividends Dividends to the company's shareholders are classied as a liability when the dividends proposed have been approved by the Annual General Meeting. Employee share purchase Programme Multiconsult ASA has a share purchase programme for employees of the group. Through the share purchase programme, the compa- ny oers employees of the group shares in Multiconsult ASA with a discount of 20 per cent. Shares purchased by the employees through the programme are subject to a two-year lock-in period. Based on independent party calculations according to an opti- on-pricing model (“Black Scholes”), a part of the discount is recog- nised as employee benet expense in the statement of income and a part directly to equity. The main part of the discount can be related to reduction in value due to the lock-in period and a loss on an equ- ity transaction. See more details in note 9. Standards and interpretation not yet eective The new and amended standards and interpretations that are is- sued, but not yet eective, up to the date of issuance of the group’s nancial statements are disclosed below. The group intends to adopt these new and amended standards and interpretations, if ap- plicable, when they become adopted by EU. IFRS 17 Insurance Contracts IFRS 17 Insurance Contracts is a comprehensive new accounting standard for insurance contracts covering recognition and measu- rement, presentation and disclosure. The standard is eective for reporting periods beginning on or after 1 January 2023. This stan- dard is not applicable to the group. Onerous Contracts – Costs of Fullling a Contract – Amendments to IAS 37 In May 2020, the IASB issued amendments to IAS 37 to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making. The amendments apply a “dire- ctly related cost approach”. The costs that relate directly to a con- tract to provide goods or services include both incremental costs and an allocation of costs directly related to contract activities. Ge- neral and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the co- unterparty under the contract. The amendments are eective for annual reporting periods beginning on or after 1 January 2022. The group does not expect any material impact following the implemen- tation of these amendments. Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2 In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements, in which it provides guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘signicant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about acco- unting policy disclosures. The amendments to IAS 1 are applicable for annual periods beginning on or after 1 January 2023 with ear- lier application permitted. The group will assess the impact of the amendments to determine the impact they will have on the group’s accounting policy disclosures. Other A number of limited scope amendments and interpretations have been issued eective from 1 January 2022, including amendments to IFRS 3, IAS 16, IFRS 1, and IFRS 9. An amendment to IAS 8 has been issued and is eective from 1 January 2023. These amendments and interpretations have been assessed to have no material impact on the group. lations and when it is considered probable that the treatment will be accepted by the taxation authorities. The group provides for uncertain and contested tax positions based on the expected payment. The income tax expense for a period consists of income tax payable and deferred tax. Income tax is recognised in prot or loss, except for when it relates to items that are recognised in equity, either directly or through other comprehensive income. Statement of cash flows The statement of cash flows has been prepared in accordance with the indirect method. Interest received and paid are reported as part of nancing activities. Dividends paid are presented as part of nancing activities. Lease agreements The group as lessee Multiconsult has two classes of assets that have been reported as right-of-use assets: buildings (primarily oce premises) and cars. Recognition exemptions The group applies the practical expedients to not recognise right- -of-use assets and liabilities for leases with lease periods of one year or less and where the underlying assets are of low value. Low value has been dened on the basis that the underlying assets, when new, are individually of low value, i.e. oce furniture, water dispensers, coee machines, IT equipment for use by the individual employees, printers and copy machines etc. For these leases, the group recognises the le- ase payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more repre- sentative of the time pattern in which economic benets from the lea- sed assets are consumed. Identifying a lease The group assesses whether a contract is or contains a lease, at incep- tion of the contract. For the group there are no dicult evaluations to determine if contracts contain leases. Only lease payments are inclu- ded in the calculation of the lease liability. Several of the agreements for lease of oce premises contain renewal options, and the group makes concrete evaluations of each contract to determine the lease term. Recognition and measurement of right-of-use assets and lease liabilities The group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, with the exemptions as mentioned above. The lease liability is initial- ly measured at the present value of the lease payments that are not paid at the commencement date, discounted by using an incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise: • Fixed lease payments (including in-substance xed payments), less any lease incentives receivable; • Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; • The amount expected to be payable by the lessee under residual value guarantees; • The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and • Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease. Currently the group have no leases that contains variable lease pay- ments. The lease liability is subsequently measured by increasing the carry- ing amount to reflect interest on the lease liability (using the eective interest method) and by reducing the carrying amount to reflect the lease payments made. The group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever: • The lease term has changed or there is a signicant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. • The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used). • A lease contract is modied and the lease modication is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modied lease by discounting the revised lease payments using a revised discount rate at the eective date of the modication. Several of the groups lease contracts for oce premises are subject to an annual indexation regulation, a few of the contracts are subject to a quarterly index regulation. The most common index regulation is based on country specic CPI. The right-of-use assets comprise the initial measurement of the co- rresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumula- ted depreciation and impairment losses. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ow- nership of the underlying asset or the cost of the right-of-use asset reflects that the group expects to exercise a purchase option, the re- lated right-of-use asset is depreciated over the useful life of the un- derlying asset. The depreciation starts at the commencement date of the lease. The group applies IAS 36 Impairment of Assets to determine whether a right-of-use asset is impaired and to account for any impairment loss identied. An asset is impaired when the carrying amount exceeds its recoverable amount. Recoverable amount is determined when there is any indication that an asset may be impaired. All right-of-use assets are assessed for impairment indicators at the end of each reporting period. Lease term The lease term is dened as the non-cancellable period for which a lessee has the right to use an underlying asset, together with both pe- Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 94 95MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 The preparation of nancial statements in accordance with IFRS requ- ires that management makes assessments, estimates and assumpti- ons that impact reported amounts for revenues, expenses, assets and liabilities and presentation of contingent liabilities at the end of the reporting period. Judgements that management have made as part of the application of the entity's accounting policies and that have the most signicant impact on the amounts recognised in the nancial statements are as follows: Business combinations The company assess on a continuous basis opportunities for strategic acquisitions of businesses within the consultant and advisory market. Goodwill is not amortised and is tested for impairment on an annual basis, whilst intangible assets will normally be amortised, allocating the cost of acquisition to prot or loss on a systematic basis. Development costs The company carries out a range of research and development acti- vities and projects, none of which are individually signicant. Refer to note 7 for more information. Some expenses incurred in the develop- ment phase of an intangible asset shall be recognised in the balance sheet if specic criteria in IAS 38 have been satised. Costs that do not satisfy these criteria are recognised as expenses in the state- ment of income as incurred and may not be recognised in the balan- ce sheet at a later date. For a consultant and advisory company like Multiconsult, it is challenging to make an assessment as to whether development of a service delivery process or service would satisfy the criteria for recognition in the balance sheet. Consequently, there may be development costs that are not recognised as an asset because the company has not demonstrated that the criteria are satised at relevant points in time. Historically, the company has expensed all costs as incurred, with the exception of certain software developed for own use. Sources of estimation uncertainty with a signicant risk of a materi- al adjustment to the carrying amount in the following period: Revenue The majority of the projects are charged on hourly basis. In principle, all worked hours shall be paid according to the agreed rate in the contract. Revenue is recognised when the services are rendered. The company makes continuous assessment of the probability that hours worked will be paid and makes adjustments to recognised re- venues as appropriate. The main uncertainty relating to the assess- ment of contract revenue is associated with work eciency, change orders, claims, damages and incentives. Even though the company has considerable experience in project management and measure- ment, there is an inherent risk associated with all these estimates. Provisions The group performs a large number of projects which vary in size. When performing a project, defects or damage that arise as a con- sequence of the deliverable may be discovered and result in a claim against the company. There may be potential defects or damages NOTE 2 B SIGNIFICANT JUDGEMENTS IN THE APPLICATION OF GROUP ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES that have not been reported as a claim to the group, and that the group therefore is not aware of. Furthermore, the time horizon from reporting a case until nal settlement may be several years. The size of the settlements may vary considerably. The company performs a thorough review of each claim. Project responsibility cases will give rise to both recognised provisions for liabilities and contingent lia- bilities that are not recognised as the company has assessed that it is not probable (under 50 per cent probability) that the company will be required to pay compensation. Multiconsult has insurance policies and routines for following up project risk. When a business segment is represented out of Multiconsult Norge AS it will have customary insurance cover for project liability up to a certain level and subject to certain conditions. Business segments represented through other subsidiaries have local insurance cover for project lia- bility up to a certain level and subject to certain conditions. Insuran- ce cover for project liability in Multiconsult Norge AS is mainly based on collective policies for engineering consultancies. This insurance takes the form of standard policies for engineering projects, with an excess of NOK 300 000 per claim and normally with a maximum co- ver of up to 150 times the Norwegian national insurance base rate (G) – about NOK 16 million. The company makes period reviews together with the insurance company. Expected reimbursement from the insurance company related to recognised provisions is recognised if it is virtually certain that the company will receive compensation. The actual outcomes may dier materially from the estimates used. Refer to note 20 Provisions, disputes and contingent liabilities. Impairment Cash-generating units are reviewed for impairment when indicators exist and on an annual basis when it includes goodwill. The estima- ted recoverable amounts are aected by assumptions in connection with the estimation of future cash flows, as well as the discount rate for the estimation of the present value of the cash flows. Refer to note 14 Intangible assets and goodwill for further disclosure. Income tax and indirect tax The company conducts activities both within and outside Norway. There is a risk that the tax authorities may make assessments that dier from the group with regard to the amount of income tax and indirect tax payable. The group provides for income tax and indi- rect taxes based on the best estimate of the amounts payable for obligations that are probable, assuming that the group and the tax authorities have access to the same information. The group is not familiar with any signicant disagreements upon issue of these con- solidated nancial statements. Environmental and climate risk Climate change provides both risks and opportunities for Multicon- sult. The threats and opportunities for climate risk is addressed in line with other treats and opportunities, by executive management team informing the board of directors. Transition risk and physical risk is evaluated separately. Physical risk is evaluated to be low, as the group does not own substantial assets vulnerable to acute or PROJECT: STAVANGER TOWN HALL, STAVANGER ILLUSTRATION: LINK ARKITEKTUR Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 96 97MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Maturities of receivables that have not been impaired Amounts in NOK thousand Carrying amount Not due 0-30 days 30-60 days 60-90 days >90 days Trade receivables 635 495 477 078 80 759 15 201 6 639 55 819 Work in progress 255 894 255 894 - - - - Other current receivables 1) 35 480 35 480 - - - - Other non-current receivables 2) 3 780 3 780 - - - - Allowance for losses on receivables (8 769) - - - - (8 769) Total trade and other receivables 921 880 772 232 80 759 15 201 6 639 47 050 1) Other current receivables do not include prepayments, which are not considered nancial assets. 2) Other non-current receivables do not include net pension and reimbursement assets. MATURITIES OF TRADE RECEIVABLES, ACCRUED REVENUES AND OTHER RECEIVABLES 31 DECEMBER 2020 Amounts in NOK thousand 2021 2020 Opening balance allowance for losses on receivables 8 769 15 176 Change in allowances for losses on trade receivable during the year (1 220) (6 407) 1) Closing balance allowance for losses on receivables 7 549 8 769 Realised losses in the event of bankruptcy etc. 2 005 11 093 Loss on receivables in the statement of income 785 11 301 1) 1) NOK 6.0 million is recognised in the statement of income as write-down of work in progress in 2019 and has reduced operating revenu- es accordingly. The reversal of the provision in 2020 increases operating revenues by NOK 6 million. Amounts in NOK thousand 31.12.2021 31.12.2020 Multiconsult ASA 180 000 - Total interest-bearing liabilities 180 000 - CHANGES IN ALLOWANCES FOR LOSSES ON RECEIVABLES DURING THE YEAR b)Liquidity risk Liquidity risk is the risk of being unable to settle nancial obligations at maturity. Liquidity risk arises if there is no correspondence bet- ween the cash flows from the business and the nancial obligations. Managing liquidity risk is performed through development of liqu- idity management strategies, which are operationalised through li- quidity budgets and are continuously reviewed. The group’s liquidity risk exposure is limited, but with signicant short-term and seasonal variation. The highest level of net working capital is normally during the third quarter. Liquidity is managed closely through budgets and regular short- and long-term forecasting. Historically, the group has had sucient liquidity and has annually paid dividends to the ow- ners. The group's cash flows from operating activities in 2021 and 2020 were positive. The operations in Multiconsult are exposed to normal fluctuations that aect the cash flows during the year. The majority of payments relate to employees and sub-contractors. Change in interest-bearing liabilities in the balance sheet from 2021 to 2020 corresponds to the proceeds and instalments reported in the statement of cash flow. The group's exposure to nancial risk is primarily related to credit risk, liquidity risk, currency risk and interest rate risk. Risk management in the group aims to support value creation in the group and to secure a continuing solid nancial platform through vi- sibility and strategic management of both nancial and operational risk factors. Operational risk relates mainly to larger projects, which is continuously reviewed by the executive management. a) Credit risk Credit risk is the risk that customers are not able to settle their pay- ment obligations. Credit risk is considered to be a part of business risk and is reviewed as part of ongoing operations. A major part of the group's activities are conducted in the subsidiary Multiconsult Norge AS (74 per cent of operating revenues in 2021), with the sub- group LINK Arkitektur as the second largest (15 per cent of opera- ting revenues in 2021). The companies in the group have established procedures for credit assessment of customers as well as suppliers. The risk that customers do not have the nancial ability to settle their obligations is considered to be low. Historically, only minor cre- dit losses on receivables have been realised. The group's clients are to a large extent public sector or well-established companies. The largest proportion of the group's customers are Norwegian, thus creating a geographical concentration of risk. Of the group's revenues in 2021 and 2020, approximately half relates to public se- ctor customers and approximately 80 per cent relates to customers in Norway. Multiconsult Norge AS has some large contracts that, to chronic physical risk. HSE procedures are in place to handle climate induced weather events, and the group and subsidiaries’ insuran- ce is considered to cover all climate risks in a sucient way. The largest transitional risk is linked to market risks and opportunities. The market risk is considered low for both short-, medium- and long term while short-, medium- and long-term market opportunities are NOTE 3 FINANCIAL RISK MANAGEMENT a certain extent, lead to a concentration of risk within a small num- ber of large customers. The group's ve largest individual custo- mers comprised approximately 16 per cent of the group’s operating revenues in 2021 (17 per cent in 2020). The ten largest individual customers comprised approximately 23 per cent of the group’s ope- rating revenues in 2021 (25 per cent in 2020). The group's ve and ten largest individual customers in relation to trade receivables and work in progress on 31 December 2021 comprised approximately 24 per cent and 28 per cent, respectively. The group's maximum credit exposure comprises the carrying amo- unt of receivables, work in progress, and cash and cash equivalents and restricted cash. General payment terms are 30 days. Non-cur- rent receivables comprise limited amounts and have no xed ma- turity date. The group assesses that the risk for trade receivable and work in progress not being realised primarily relates to disputes regarding consideration. Individual assessments are made of trade receivables over a certain size, with a particular focus on those more than 60 days overdue. Generally, customers are invoiced continuo- usly for hours worked on the assignments. The assessment of whet- her revenue has been earned is, in some cases, also performed after the hours have been invoiced, with a reduction of revenues and work in progress or recognition of prepaid revenues (contract liability). To the degree that reduction to revenues has been realised in the form of a credit note, revenues has been reduced, instead of recognising the adjustment as a realised loss. Realised losses in the table below are therefore related to bankruptcies etc. at customers and repre- sents actual credit losses. considered to be substantial, and a key market driver, in the strategy process. As the construction industry is a large contributor to clima- te emissions, the sector is under the scrutiny of policy makers. For more information, see Reporting according to Task Force on Clima- te-related Financial Disclosure, TCFD in the section Sustainability and Corporate responsibility section this report. Maturities of receivables that have not been impaired Amounts in NOK thousand Carrying amount Not due 0-30 days 30-60 days 60-90 days >90 days Trade receivables 738 430 597 567 69 107 13 094 6 622 52 039 Work in progress 225 021 225 021 - - - - Other current receivables 1) 32 643 32 643 - - - - Other non-current receivables 2) 6 405 6 405 - - - - Allowance for losses on receivables (7 549) - - - - (7 549) Total trade and other receivables 994 950 861 636 69 107 13 094 6 622 44 490 1) Other current receivables do not include prepayments, which are not considered nancial assets. 2) Other non-current receivables do not include net pension assets and reimbursement assets. MATURITIES OF TRADE RECEIVABLES, ACCRUED REVENUES AND OTHER RECEIVABLES 31 DECEMBER 2021 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 98 99MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Amounts in NOK thousand FVTPL Amortised cost Total Estimated fair value Level in the fair value hierarchy ASSETS Shares and equity interests 1 731 - 1 731 1 731 3 Other non-current receivables - 6 405 6 405 6 405 N/A Non-current nancial assets, restricted funds - 15 316 15 316 15 316 N/A Trade receivables and other current receivables 1) - 988 545 988 545 988 545 N/A Cash and cash equivalents - 156 165 156 165 156 165 N/A Total assets 1 731 1 166 430 1 168 162 1 168 162 Estimated fair value 1 731 1 166 430 1 168 162 1 168 162 31 DECEMBER 2021 c)Currency risk Several business units carry out a small number of projects in other currencies than their domestic currency. The currency risk relates to the delivery of services where revenue is in a foreign currency. Se- veral ongoing foreign assignments have agreed rates in currencies other than the functional currency of the business unit, mainly EUR and USD. When a signicant currency risk arises, the risk is assessed separately, and the risk can be mitigated through the use of forward currency contracts. The group had no forward currency contracts on 31 December 2021. The group has, to a limited degree, bank accounts, trade receivables and trade payables in foreign currency. When entering into contracts in foreign currency the company eva- luates currency risks and the need to secure these risks. The sub- sidiaries hold monetary items primarily in their functional currency. Changes in currency rates between NOK and foreign currencies will influence the group's statement of income and equity. For accounting purposes, the group is exposed to currency trans- lation risk related to foreign subsidiaries and associated compani- es, primarily to the following currencies - mentioned here by ISO currency code: PLN, DKK, SEK and GBP. Currency risk arising from equity in foreign entities is not hedged, and currency changes aect the group's equity through other comprehensive income. Subsidi- aries that conduct services abroad may be subject to currency risk that may influence their statement of income and equity. The eect on monetary items from a reasonably possible change in currency rates compared to the separate group entities' functional currency would be insignicant as of 31 December 2021 and 2020. d) Interest rate risk The group's operating revenues and cash flows from operating activities are to a limited degree directly aected by interest rate changes. The group's interest rate risk is related to variable inte- rest on bank accounts and on liabilities. Due to the limited amount of net interest-bearing liabilities on 31 December 2021 and 2020, a change in interest rates of half a percentage point would result in insignicant change in annual net interest expense (excluding eect on fair value of interest rate swaps). Multiconsult ASA has an interest rate swap that exposes it to fair value interest rate risk. On 31 December 2021, NOK 64.5 million (NOK 75.3 million on 31 December 2020) is swapped from variable 3-month interest (NIBOR equivalent) to xed interest of 1.565 per cent p.a. for three years. On 31 December 2021 the fair value was a liability of NOK 385 thousand (liability of NOK 1 589 thousand per 31 December 2020). An increase/decrease in the variable 3-month interest (NIBOR equivalent) of half a percentage point (50bp) would result in a loss of NOK 0.2 million/loss of NOK 0.5 million on 31 De- cember 2021 (31 December 2020: a gain of NOK 1.1 million/loss of NOK 2.1 million). The interest rate swap is due in October 2022 and no new interest rate swap is agreed after this. The company will secure about, on average, 50 per cent of the assumed net inte- rest-bearing liabilities over time. Establishment of the interest rate swap was due to requirements from the lender in connection with establishment of term loan in 2017. e) Categories of nancial instruments The group has the following categories of nancial instruments: MATURITY INTEREST-BEARING LIABILITIES 31 DECEMBER 2020 MATURITY INTEREST-BEARING LIABILITIES 31 DECEMBER 2021 Multiconsult ASA has an overdraft loan facility of NOK 320.0 million, which is part of a cash pool. The cash pool is a multi-currency and multi-account system including the legal entities Multiconsult Nor- ge AS, LINK Arkitektur AS, LINK Arkitektur AB, LINK Arkitektur A/S, Iterio AB and Multiconsult UK Limited, where Multiconsult ASA is the owner of the cash pool’s top account and the debtor of the facility. In addition, Multiconsult ASA holds a 3-year revolving credit facility of NOK 450 million, plus accordion option of NOK 150 million un- til March 2023. The loan agreements include a covenant requiring that net interest-bearing liabilities (excluding restricted cash) of the group shall not exceed 3.0 times last twelve months EBITDA, and a Maturity Amounts in NOK thousand Carrying amount 1 year 2 years > 2 years Total payments Interest-bearing liabilities - - - - - Interest on interest-bearing liabilities 1) - - - - Total interest-bearing liabilities incl. interest - - - - - For information on maturities of lease liabilities, see note 18 Leases. There are no signicant restrictions on the company's ability to access or use the group's assets or to settle the group's liabilities, see however restricted cash in note 16. covenant requiring an equity ratio of at least 25 per cent, reported quarterly. Covenant ratios are calculated excluding IFRS 16 eects, and the EBITDA includes “carve-out” for certain limited one-o costs. Multiconsult is in compliance with its nancial covenants on 31 December 2021. The existing loan agreement, overdraft facility and guarantee agre- ement contain negative pledge in relation to new loan agreements and cross default clauses, and limitations in entering into new loan agreements without the consent of the lender. See section "capital management" below. Maturity Amounts in NOK thousand Carrying amount 1 year 2 years > 2 years Total payments Interest-bearing liabilities 180 000 - 180 000 - 180 000 Interest on interest-bearing liabilities 4 500 1 125 - 5 625 Total interest-bearing liabilities incl. interest 180 000 4 500 181 125 - 185 625 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 100 101MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Amounts in NOK thousand FVTPL Amortised cost Total Estimated fair value Level in the fair value hierarchy LIABILITIES Derivatives 1 589 - 1 589 1 589 2 Interest-bearing liabilities (excluding lease liabilities) - - - - N/A Trade payables and other current liabilities 2) - 794 531 794 531 794 531 N/A Total liabilities 1 589 794 531 796 120 796 120 Estimated fair value 1 589 794 531 796 120 796 120 1) Prepayments are excluded since this analysis is only required for nancial instruments. It also excludes net pension assets and reimburse- ment assets. 2) Prepaid revenues and income taxes payable are excluded from trade payables and other liabilities, since this analysis is only required for nancial instruments. It also excludes provisions, net pension liabilities and lease liabilities. Fair value estimates and the fair value hierarchy The group measures fair value based on the following hierarchy that reflects the input used in measuring fair value: Level 1: Quoted prices (unadjusted) in active markets for identical nancial instruments. Level 2: Inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Inputs for assets or liabilities that are not based on obser- vable marked data (unobservable inputs). The net carrying amounts of trade receivables, other receivables, cash and cash equivalents, interest-bearing liabilities and trade payable are deemed to approximate fair value. Shares and equity interests that are not listed, have a low value and it is assumed that the carrying amounts approximate fair value. Fair value of deriva- tives is calculated based on the present value of future cash flows, calculated using interest rate curves, currency exchange rates and currency spreads as of the reporting date. f) Capital management The group has followed up its capital structure by securing adequate free liquidity in the form of cash, bank placements and bank over- draft, to be able to continuously service its obligations without sig- nicant loan nancing, have adequate equity and to have available liquidity. Multiconsult have set nancial targets as follows: • Gearing: The maximum gearing (NIBD/EBITDA) shall be 2.5x. The company shall aim to have a gearing of 1.0x - 2.0x in normal circumstances. In special circumstances (such as acquisitions) gearing may go up to 3.0x for a period not exceeding 18 months. Gearing is measured excluding IFRS 16 eects. • Equity: Equity ratio above 25 per cent. Equity ratio shall be measured excluding IFRS 16 eects. • Protability: 10 per cent EBIT margin – measured on an annual basis, exclusive extraordinary items. Dividend policy: The dividend policy is based on an ambition to distribute at least 50 per cent of the group’s net prot annually. When deciding the annu- al dividend level, the board of directors will take into consideration the various aspects of the nancing strategy, such as expected cash flows, capital expenditure plans, nancing requirements and appro- priate nancial flexibility. The board proposes a dividend of NOK 6.00 per share as ordina- ry dividend for 2021 to be declared at the 2022 annual general meeting. The board’s proposal for dividend is based on the good nancial re- sults for 2021, and a strong balance sheet that provides the compa- ny with adequate nancial flexibility. The level of dividend is accor- ding to the dividend policy of the company. Calculated covenants based on amounts adjusted for IFRS 16 ee- cts and "carve-out": 31.12.2021 31.12 2020 Covenant net interest-bearing liabilities/EBITDA 0.06 (0.65) Covenant Equity ratio 40.3 % 43.5% * See section APM Amounts in NOK thousand FVTPL Amortised cost Total Estimated fair value Level in the fair value hierarchy LIABILITIES Derivatives 385 - 385 385 2 Interest-bearing liabilities (excluding lease liabilities) - 180 000 180 000 180 000 N/A Trade payables and other current liabilities 2) - 916 482 916 482 916 482 N/A Total liabilities 385 1 096 482 1 096 867 1 096 867 Estimated fair value 385 1 096 482 1 096 867 1 096 867 1) Prepayments are excluded since this analysis is only required for nancial instruments. It also excludes net pension assets and reimburse- ment assets. 2) Prepaid revenues and income taxes payable are excluded from trade payables and other liabilities, since this analysis is only required for nancial instruments. It also excludes provisions, net pension liabilities and lease liabilities. Amounts in NOK thousand FVTPL Amortised cost Total Estimated fair value Level in the fair value hierarchy ASSETS Shares and equity interests 70 - 70 70 3 Other non-current receivables - 3 780 3 780 3 780 N/A Non-current nancial assets, restricted funds - 15 847 15 847 15 847 N/A Trade receivables and other current receiva- bles 1) - 918 100 918 100 918 100 N/A Cash and cash equivalents - 277 435 277 435 277 435 N/A Total assets 70 1 215 162 1 215 232 1 215 232 Estimated fair value 70 1 215 162 1 215 232 1 215 232 31 DECEMBER 2020 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 102 103MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 This preliminary purchase price allocation is based on company accounts adjusted for calculated IFRS 16 right-of-use assets and lease liabilities. As part of the purchase price allocation an intangible asset related to the order backlog of NOK 8.9 million was identied. The acquisition ge- nerated an excess value of NOK 392.1 million allocated to goodwill. The goodwill is related to the competence of the sta and synergy eects. Incremental external transaction related cost of NOK 2.6 million was expensed as part of other operating expenses. Pro-forma impact of the acquisition on the result of the group If the business combination of Erichsen & Horgen had been eective on 1 January 2021, the net operating revenue for the group would have been NOK 3 987 million for 2021 (NOK 3 960 million for 2020). EBIT would have been NOK 364 million for 2021 (NOK 402 million for 2020). The group considers these pro-forma numbers to represent an approximate measure of the performance of the combined group and to provide a re- ference point for comparison in future periods. Other acquisitions On 1 October, Multiconsult ASA announced its agreement to acquire 100% of the shares in Nordland Teknikk AS and strengthen its compe- tence and presence in the Helgeland region. Nordland Teknikk AS is a consulting engineering company with a core of construction engineers, with a long history and solid presence in the county of Nordland, Norway. Closing date for the transaction was on 1 November. The total purcha- se price was set to NOK 7.4 million, after adjustment for the value of net debt and normalised working capital at the transaction date. NOK 4.9 million was allocated to goodwill related to the competence of the sta and synergy eects. Net cash paid was NOK 6.0 million. There were no business combinations in 2020. Adjustments: Amounts in NOK thousand Locked-box interest Cash in purchased entities 9 120 (38 377) Net adjustments (29 257) Net cash paid (308 208) Consideration: Amounts in NOK thousand Settled with Multiconsult shares Settled with cash 84 366 337 465 Total consideration 421 831 NOTE 4 BUSINESS COMBINATIONS Acquisition of Erichsen & Horgen AS On 8 July, Multiconsult announced that they entered into an agreement to purchase 100% of the shares of Erichsen & Horgen AS at an enterprise value (EV) of NOK 410 million on a cash- and debt free basis based on normalised working capital. The total purchase price for the acquisition of Erichsen & Horgen AS of NOK 421.8 million after adjustments for working capital and net cash was settled in a combination of NOK 337.5 million in cash (80 per cent) and NOK 84.4 million in Multiconsult shares (20 per cent) on 16 August 2021. The transaction was based on a locked-box ac- quisition model where the locked-box date (reference date) was set to 31 December 2020. Consequently, Multiconsult in addition to the purchase price paid total consideration of NOK 9.1 million as locked-box compen- sation for the period 1 January 2021 to 16 August 2021 (the closing date). Erichsen & Horgen is a leading Norwegian engineering consultancy with a strong market position within buildings construction, HVAC, WWT, energy, environment and sustainability. Erichsen & Horgen, including its subsidi- ary Ingeniørrmaet Malnes og Endresen AS, has about 235 employees with headquarter in Oslo, the company also has oces in Trondheim, Ski- en, Drammen and Lillehammer. For 2020, the company recorded opera- ting revenues of NOK 331.3 million, EBIT of NOK 31.3 million and net prot (after tax) of NOK 24.3 million. The acquisition is a strategic milestone in Multiconsult’s mission to pro- vide solutions to clients for the most complex projects and constructions in line with tomorrow’s demands regarding environmental and innovati- ve sustainable solutions. Erichsen & Horgen has leading expertise and a culture that ts well with Multiconsult. The two companies have a long history of successful collaboration projects based on trust and mutual respect. Multiconsult will together with Erichsen & Horgen be able to of- fer solid, interdisciplinary expertise and experience and bring our leading solutions to the next level. In connection with the closing of the transaction, Multiconsult ASA has increased the limit of its revolving credit facility (RCF) from NOK 200.0 million including an accordion option of NOK 400.0 million until March 2023, to a total of NOK 450.0 million with an accordion option of NOK 150.0 million until March 2023. As part of the settlement in shares, Multiconsult, in accordance with the amendments approved at Multiconsult ASA’s general meeting on 19 April 2021, issued to the shareholders of the acquired company 460 129 shares on 16 August 2021, at a share price of NOK 183.35, representing approximately 1.68 per cent of the shares in Multiconsult ASA and an in- crease of share capital of NOK 230 064.50. The share capital increase and new shares was registered in the Norwegian Registry of Business En- terprises together with amended Company Articles of Association on 17 August 2021. The amended Articles of Association are available on Mul- ticonsult website at https://www.multiconsult-ir.com/articles-of-associ- ation. Following registration, the total share capital of Multiconsult ASA is NOK 13 715 261.50 divided into 27 430 523 shares, each with a nominal value of NOK 0.5. Preliminary Purchase Price Allocation The initial, preliminary purchase price allocation identied the following assets and liabilities at the acquisition date: Assets: Amounts in NOK thousand Intangible assets Property, plant and equipment Right-of-use assets Non-current receivables and shares Trade receivables Work in progress Other current receivables and prepaid cost Cash and cash equivalents 8 900 4 030 39 863 431 42 438 475 5 867 38 377 Total identiable assets 140 381 Liabilities: Amounts in NOK thousand Deferred tax Provisions Non-current lease liabilities Trade payables Current lease liabilities Other current liabilities 1 748 360 30 441 6 484 9 422 53 087 Total identiable assets 101 542 Net identiable assets 38 839 Goodwill: Amounts in NOK thousand Total consideration Locked-box interest Net identied assets 421 831 9 120 (38 839) Goodwill 392 112 Total net assets and liabilities 430 951 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 104 105MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Amounts in NOK thousand 2021 Region Oslo Region Norway Energy LINK arkitektur Inter- national Not allocated Elimi- nations Total External revenues 1 392 786 1 577 859 265 182 642 997 374 845 30 997 - 4 284 666 Internal revenues 37 213 44 273 6 789 33 016 5 620 8 665 (135 577) - Total operating revenues 1 429 999 1 622 132 271 971 676 013 380 465 39 662 (135 577) 4 284 666 Net operating revenues 1 250 558 1 512 144 233 948 564 454 243 261 6 979 (7 608) 3 803 736 Operating expenses 1 084 526 1 250 095 225 899 524 044 203 929 (12 999) (14 602) 3 260 892 EBITDA 166 032 262 049 8 049 40 410 39 333 19 977 6 994 542 845 Depreciation, amortisation, impairment 15 601 88 884 1 296 21 390 15 589 45 401 5 819 193 981 EBIT 150 431 173 165 6 753 19 021 23 743 (25 424) 1 175 348 864 Associates and joint ventures - - 204 - - - - 204 Number of employees 946 1 112 166 469 374 133 - 3 200 Amounts in NOK thousand 2020 Region Oslo Region Norway Energy LINK arkitektur Inter- national Not allocated Elimi- nations Total External revenues 1 293 843 1 506 295 292 059 695 317 379 392 19 256 - 4 186 161 Internal revenues 49 534 33 803 9 891 32 408 5 975 6 513 (138 125) - Total operating revenues 1 343 377 1 540 098 301 950 727 725 385 367 25 770 (138 125) 4 186 161 Net operating revenues 1 175 700 1 449 805 248 770 561 595 242 541 (10 276) (7 200) 3 660 936 Operating expenses 972 416 1 178 641 240 333 509 870 202 361 (33 614) (7 756) 3 062 250 EBITDA 203 284 271 164 8 438 51 725 40 181 23 338 556 598 686 Depreciation, amortisation, impairment 17 166 87 197 1 645 25 988 15 407 81 615 (1 379) 227 639 EBIT 186 118 183 968 6 793 25 737 24 774 (58 277) 1 935 371 047 Associates and joint ventures - - (2 269) - - - - (2 269) Number of employees 769 1 033 186 487 321 129 - 2 925 NOTE 5 SEGMENTS The group's business is divided into ve reporting segments, three geographical segments, one segment for LINK Arkitektur and one segment for Energy. 1. Region Oslo comprises the oces in the Oslo area. In addition, the segment includes business units Projects in Norway and Multicon- sult Asia (Singapore). 2. Region Norway comprises all oces outside of the Oslo area with presence in all the major cities in Norway and several other locati- ons, a total of 27 oces. 3. Energy comprises the Energy business unit in Norway which main- ly oers national and international services in the business area Renewable Energy and some activity in the business area Water & Environment. It also includes the subsidiary Multiconsult UK. 4. LINK Arkitektur comprises the companies LINK Arkitektur AS in Norway, LINK Arkitektur AB in Sweden and LINK Arkitektur A/S and LINK Danmark ApS in Denmark. 5. International comprises the companies Multiconsult Polska (Po- land), Iterio AB (Sweden) and Multiconsult Russia. The Segments correspond with the internal reporting to the group's chief operating decision maker, the CEO. Projects are staed across segments. Revenues and expenses are reported in a segment based on where the employee is based. The group also reports operating revenues divided by ve business areas: 1. Buildings & Properties 2. Industry 3. Renewable energy 4. Mobility & Transportation 5. Water & Environment Buildings & Properties include advisory and engineering at all stages of a construction project for all types of buildings. The business area provides services such as demand- and feasibility studies, sketch pre-project, detailed design and follow-up during the constructi- on period, and real estate consultancy. The focus is on sustainable and long-term solutions. LINK Arkitektur is included. The business area also includes complex early-stage planning in urban areas. The focus is on creating innovative solutions and contribute to building attractive cities of the future. Mobility, infrastructure, area solutions and real estate development are core markets. Industry oers complete, interdisciplinary advisory and engineering services in all project phases. Services include investigations, project development, project management, design and procurement, con- struction with all technical systems, construction management and follow-up, and commissioning. The business area includes services throughout the whole value chain, from early phase studies through FEED (Front End Engineering Design) to detailed engineering and delivery for both onshore and oshore projects. Services provided onshore are within terminal and production facilities, facilities and constructions, harbour and marine constructions, underground warehouses, land-based pipelines and landlls, and electrical sub- stations. Services provided oshore are within oil and gas rigs and platforms, concrete marine constructions, modules and structures for rigs and platforms, seabed installations, arctic climate techno- logy for floating and subsea constructions, and noise and vibration measurement amongst others. Renewable Energy covers the entire project life cycle in hydropower, transmission and distribution, land-based wind power and solar energy. Services provided are from start-up and preliminary studies to detailed design and construction management, commissioning and operational shutdown. Mobility & Transportation largely comprises advisory services for plan- ning safe and forward-looking transport systems. The business area co- vers road, rail, airport, harbour and channel transport systems. Water & Environment includes services in all phases of the lifetime of a project including inspections, engineering, operation and maintenance, and remediation and demolition. Focus is placed on sustainable develop- ment of the environment through advisory services related to green- house gas emissions, flood and mud slide protection, water and drains, blue-green structures and issues related to pollution of air, water and soil. The segments Region Oslo and Region Norway oer services within all business areas. LINK Arkitektur oers services within Buildings & Proper- ties and Industry. For the segment International, Multiconsult Polska primarily oers ser- vices within Mobility & Transportation, Industry and Water & Environment, whilst Iterio AB primarily oers services within the market areas Mobility & Transportation and Water & Environment. Not allocated in 2021 consists of administrative sta and shared ser- vices, of which the majority is allocated to the business segments. Re- maining unallocated costs are considered as shareholder costs. In ad- dition, some of the administrative sta participated in external projects which generated some external revenue and project costs. Expenses for administrative services, rent, depreciation etc. are allocated to the segments. The majority of the allocation of expenses are not re- ported as intercompany revenue and expenses. Assets are not reported internally divided by segments. The information in the segment reporting is the same as the executive management uses to allocate resources and evaluate performance. The accounting policies for the segments are the same as the policies for the group. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 106 107MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 All revenues for the group in 2021 are from contracts with customers. Revenue is generated by delivering consulting services. The group provides a range of services, including multidisciplinary consulting and design, project engineering and management, verication, inspection, supervision and architecture – both in Norway and abroad. NOTE 6 REVENUE FROM CONTRACTS WITH CUSTOMERS AND CONTRACT BALANCES Amounts in NOK thousand 2021 Region Oslo Region Norway Energy LINK arkitektur Inter- national Not allocated Total External revenues 1 392 786 1 577 859 265 182 642 997 374 845 30 997 4 284 666 Revenues per business area Buildings & Properties 479 231 668 263 1 640 619 920 - 13 754 1 782 808 Industry 176 177 304 081 9 420 23 077 13 750 4 090 530 595 Renewable Energy 15 814 58 265 239 781 - - 3 646 317 507 Mobility & Transportation 477 731 363 840 45 - 311 034 4 220 1 156 870 Water & Environment 243 833 183 412 14 294 - 50 061 5 286 496 886 Total 1 392 786 1 577 859 265 182 642 997 374 845 30 997 4 284 666 Revenues per geography 1) Norway 1 336 667 1 531 730 212 249 378 985 - 30 997 3 490 628 Sweden 2 180 11 857 1 702 182 052 149 231 - 347 022 Denmark 148 89 3 81 895 - - 82 135 Poland - - 24 1 225 614 - 225 639 All other countries 53 791 34 183 51 203 64 - - 139 242 Total 1 392 786 1 577 859 265 182 642 997 374 845 30 997 4 284 666 1) Revenues distributed by geography is based on the customer’s location. DISAGGREGATION FOR REVENUES FROM CONTRACTS WITH CUSTOMERS Amounts in NOK thousand 2021 2020 REVENUES PER GEOGRAPHY The table below shows revenues distributed by geography, based on the customer's location: Norway 3 490 628 3 343 500 Abroad 794 037 842 661 Total 4 284 666 4 186 161 Customer location is based on the invoice address. No customer contributed 10 per cent or more of revenues in 2021 or 2020. Amounts in NOK thousand 2021 2020 REVENUES PER BUSINESS AREA Buildings & Properties 1 782 808 1 825 358 Industry 530 595 356 558 Renewable Energy 317 507 328 193 Mobility & Transportation 1 156 870 1 238 401 Water & Environment 496 886 437 651 Total 4 284 666 4 186 161 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 108 109MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Work in progress relate to the group's right to consideration for work completed but not billed at the reporting date. Work in progress is transferred to receivables when the group issues an invoice. The group has used the practical expedient not to adjust the pro- mised amount of consideration for the eects of a signicant nan- cing component if the group expects, at contract inception, that the period between transfer of the service and when the customer pays for that service will be one year or less. Approximately 34 per cent of the prepaid revenues relates to contracts in Multiconsult Norge AS, and approximately 6 per cent to contracts in LINK Arkitektur AS. Approximately 60 per cent of the prepaid revenues relates to con- tracts in Multiconsult Polska. Multiconsult Polska has been able to negotiate some long-term contracts with prepayments. Multicon- sult’s opinion is that the rationale behind the prepayments is not providing nancing of the group and has consequently not recogni- sed interest expense and osetting increase in revenues. Multiconsult estimates that prepaid revenues of NOK 86 046 tho- usand on 31 December 2020 has been recognised as revenue during 2021. Order backlog (unaudited) Order backlog is revenue expected to be recognised in the future related to performance obligations that are unfullled (or partial- ly fullled) on 31 December 2021. Options and call-os on frame agreements are not included in the order backlog before signed and thereby committed. Contracts for an agreed service delivery may include an agreed scope, with xed price per hour but where the number of hours are not xed. Multiconsult regards this as variable consideration and has included the expected number of hours in the order backlog. The order backlog on 31 December 2021 is estimated to NOK 3 260 million. The order back log from the acquired company Erichsen & Horgen is not included in the reported gures. The timing of the re- cognition of revenue is uncertain, as it depends on the actual pro- gress in many dierent projects which involves a number of parties. The group has estimated that it may recognise approximately 60 per cent of the order backlog as revenue during 2022, 25 per cent in 2023 and the remaining 15 per cent in the subsequent years. No consideration from contracts with customers is excluded from the amounts presented in the table above. Multiconsult Norge AS and LINK Arkitektur AS performs a number of research and development activities. Based on the denition in IFRS, the company has divided the activities into the following ca- tegories: 1. Projects with external funding. 2. Projects with collaborating partners (example SINTEF, Skatte- funn, PhD arrangements). 3. Activities related to methodology development, process etc. that the company uses to deliver to customers (product and process de- velopment), including these activities in group networks. Total expenditures for these activities were NOK 7.6 million in 2021 (NOK 7.3 million in 2020), of which NOK 0 million was invoiced to customers in 2021 (NOK 0 million in 2020). In the income state- ment, these expenditures have been reduced by government grants (Skattefunn) of NOK 2.0 million in 2021 (NOK 1.6 million in 2020). None of these expenditures have been capitalised. NOTE 7 RESEARCH AND DEVELOPMENT Amounts in NOK thousand Note 31.12.2021 31.12.2020 Trade receivables 3, 13 730 881 626 726 Work in progress (contract assets) 3, 13 225 021 255 894 Prepaid revenues (contract liabilities) 141 749 155 656 CONTRACT BALANCES Amounts in NOK thousand 2020 Region Oslo Region Norway Energy LINK arkitektur Inter- national Not allocated Total External revenues 1 293 843 1 506 295 292 059 695 317 379 392 19 256 4 186 161 Revenues per business area Buildings & Properties 466 486 670 589 455 678 738 - 9 090 1 825 358 Industry 105 008 222 524 112 16 579 8 916 3 420 356 558 Renewable Energy 12 177 33 903 279 464 - - 2 649 328 193 Transportation 493 550 413 570 61 - 330 352 869 1 238 401 Water & Environment 216 622 165 709 11 966 - 40 124 3 229 437 651 Total 1 293 843 1 506 295 292 059 695 317 379 392 19 256 4 186 161 Revenues per geography 1) Norway 1 251 891 1 462 698 214 680 394 975 - 19 256 3 343 500 Sweden 2 551 11 612 3 520 209 729 154 448 - 381 859 Denmark 62 665 180 90 614 - - 91 521 Poland - - 105 - 224 944 - 225 049 All other countries 39 338 31 319 73 574 - - - 144 232 Total 1 293 843 1 506 295 292 059 695 317 379 392 19 256 4 186 161 1) Revenues distributed by geography is based on the customer’s location. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 110 111MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Amounts in NOK thousand 2021 2020 EMPLOYEE BENEFIT EXPENSES Salaries, vacation pay, bonus etc. 2 256 722 2 145 718 Social security tax 331 459 301 481 Pension expenses (see note 12) 186 534 175 936 Other employee benet expenses 36 695 36 941 Total employee benet expenses 2 811 409 2 660 077 Number of full time employees during the year 1) 2 978 2 962 Number of employees on 31 December 3 200 2 925 1) Number of full-time employees is calculated as the total number of working hours (including overtime and paid sick leave) divided on normal working hours per full time employee for the period. In 2020 eligible employees were granted an extraordinary bonus of total NOK 25 million for strong commitment in a challenging year. NOTE 9 EMPLOYEE BENEFIT EXPENSES, NUMBER OF EMPLOYEES, REMUNERATION, LOANS TO EMPLOYEES ETC. Multiconsult ASA has a share purchase program (SPP) available to all group employees. The SPP oers employees to buy shares in Multiconsult ASA at a discount of 20 per cent. Shares purchased by the employees through the program are subject to a two-year lock- in period. The 2021 program took place in November. In total Multiconsult sold 370 716 shares to its employees, which was purchased in the mar- ket. The sale was based on a price of NOK 123.93 per share, a 20 per cent discount of the volume-weighted average share price of NOK 154.91 per share traded on Oslo Børs in the period 3 to 9 November 2021. The total sales price reduced with the discount was NOK 45 943 thousand, of which NOK 21 529 thousand was paid in cash and the remaining NOK 24 413 thousand as loans granted to the em- ployees, maximum 3/5 G (NOK 63 839) per employee. The outstanding balance of loans per 31 December 2021 was NOK 22 912 thousand including loans to the executive management related to their variable performance-based bonus scheme. Repayment of loans takes place over 12 months through deduction in salary. In the 2020 program the employees purchased 391 884 shares. The total sales price was NOK 35 109 thousand, of which NOK 17 511 tho- usand was paid in cash and the remaining NOK 17 598 thousand as loans granted to the employees. The outstanding balance of loans per 31 December 2020 was NOK 17 598 thousand, including loans to the executive management related to their variable performan- ce-based bonus scheme. The discount is partially recognised as an expense and partially re- cognised directly in equity. See accounting policies for further des- cription. SHARE PURCHASE PROGRAMME AND LOANS TO EMPLOYEES Amounts in NOK thousand 2021 2020 Employee benet expenses (410) (942) Recognised directly to equity (before tax) 1) 11 895 9 720 Total discount 11 485 8 778 1) The discount (before tax) recognised directly to equity may deviate from the total amount (before tax) recognised in the statement of equity if the payments to acquire own shares deviates from the market price for the shares used as basis for calculation of the discount. There are no unamortised employee benet expense related to the shares sold. DISCOUNT, EMPLOYEE SHARE PURCHASE PROGRAM 2021 2020 Amounts in NOK thousand Deloitte Other Deloitte Other Statutory audit services 3 102 426 2 910 252 Tax advisory services 32 - 69 - Other assurance services 98 165 72 - Other non-audit services 14 8 72 225 Total 3 247 599 3 123 477 The amounts above are excluding VAT. AUDITOR Fees paid to Deloitte AS and aliated companies, as well as other auditors in subsidiaries: Amounts in NOK thousand 2021 2020 Oce expenses 77 106 80 236 Consultants 45 640 43 423 Technical equipment 21 231 22 224 IT and communication 167 749 129 689 Travel and meeting 21 250 19 790 Sales and marketing 15 220 14 519 Losses on receivables 785 11 301 Gain on sale of xed assets (756) (1 029) Other 101 259 82 022 Total other operating expenses 449 482 402 174 NOTE 8 OTHER OPERATING EXPENSES Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 112 113MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 4) Variable remuneration is an amount earned in the year presented (excluding holiday pay), and normally paid the subsequent year. Relevant bonus as part of executive management. 5) Shares owned by the members of the executive management as of 31 December, with close associates. 6) Short-term loans for purchase of shares through the share purchase program for all employees and incentive program for executive management. 7) Bergly, Opsahl, Augestad, Bogen, Juterud and Alstad receive compensation for transition from dened benet pension plan. 8) Juterud was appointed Project Director Nye Rikshospitalet as of September 2020. Juterud is still part of Multiconsult executive management. 9) Alstad was appointed acting EVP Projects of September 2020. Amounts in NOK Fixed remuneration On 31 December Name, position Year Base salary 1) Salary paid 2) Other benets 3) Variable remunera- tion 4) Pension expense Total remunera- tion Proportion of xed and variable remuneration Shares 5) Loans 6) Grethe Bergly, CEO 7) 2021 3 342 320 3 763 676 53 975 1 671 160 132 010 5 620 822 70%/30% 36 452 58 519 2020 3 280 000 3 514 869 17 377 1 640 000 132 944 5 305 190 69%/31% 30 851 60 810 Hans-Jørgen Wibstad, CFO 2021 2 153 000 2 311 252 39 484 717 667 130 731 3 199 134 78%/22% 10 334 72 943 2020 2 101 000 2 084 276 21 455 700 333 130 702 2 936 766 76%/24% 7 564 60 810 Kari Nicolaisen, EVP HR and Communications 2021 1 796 000 1 974 289 35 621 598 667 129 576 2 738 152 78%/22% 5 253 119 718 2020 1 763 000 1 810 130 19 764 587 667 131 953 2 549 514 77%/23% 2 071 60 810 Johan Arntzen, COO 2021 1 684 000 1 841 137 31 738 561 333 134 864 2 569 072 78%/22% 10 308 115 768 2020 1 650 000 1 727 767 17 694 550 000 131 769 2 427 230 77%/23% 7 276 60 810 Lars Opsahl, EVP Sales 7) 2021 1 830 000 2 124 843 38 359 610 000 136 908 2 910 110 79%/21% 70 721 120 982 2020 1 800 000 2 041 704 22 973 600 000 134 447 2 799 124 79%/21% 67 491 60 810 Kristin Olsson Augestad, EVP Region Oslo 7) 2021 1 732 000 1 943 918 33 722 577 333 129 794 2 684 768 78%/22% 11 002 70 037 2020 1 700 000 1 818 938 17 694 566 667 130 170 2 533 469 78%/22% 7 904 60 810 Leif Olav Bogen, EVP Region Norway 7) 2021 1 732 000 1 961 217 34 781 577 333 133 507 2 706 839 79%/21% 8 737 58 519 2020 1 700 000 1 838 518 19 544 566 667 132 618 2 557 347 78%/22% 5 639 60 810 Hilde Gillebo, EVP Energy 2021 1 732 000 1 889 646 32 318 577 333 128 053 2 627 351 78%/22% 4 021 117 506 2020 1 700 000 1 631 038 19 923 566 667 128 994 2 346 622 76%/24% 1 131 60 810 Geir Juterud, EVP Project Director 7) 8) 2021 1 732 000 1 959 950 28 832 577 333 131 801 2 697 917 79%/21% 7 980 58 519 2020 1 700 000 1 809 955 18 188 566 667 130 832 2 525 642 78%/22% 5 402 60 810 Morten Alstad, EVP Projects 7) 9) 2021 1 597 000 1 815 307 24 677 532 333 131 516 2 503 834 79%/21% 70 885 70 002 2020 1 550 000 1 604 073 17 214 172 222 131 516 1 925 025 91%/9% 69 347 60 810 Kirsten Anker Sørensen, EVP Architecture 2021 1 844 872 2 012 463 68 648 614 957 172 865 2 868 933 79%/21% 1 252 - 2020 1 924 020 2 064 003 - 641 340 177 304 2 882 647 78%/22% - - Total 2021 21 175 192 23 597 698 422 157 7 615 451 1 491 625 33 126 930 236 945 862 513 Total 2020 20 868 020 21 945 271 191 826 7 158 229 1 493 249 30 788 575 204 676 608 100 1. Remuneration for leading persons The group’s suggested executive remuneration policy (Remunera- tion policy on determination of salary and other remuneration for leading persons) can be found on the group’s website www.multi- consult-ir.com 2. Remuneration policy during the accounting year The principles described in the remuneration policy, which can be found on the group’s website www.multiconsult-ir.com, are the same basic principles that were applied during 2021. 3. Remuneration to the executive management The tables below show the total remuneration to the executive ma- nagement earned in 2021 and 2020. The CEO has an agreement, which, in the event that she has to resign, gives her the right (unless she has shown gross negligence of her duties according to laws), to receive salary for 12 months in addition to salary in the 6-month no- tice period. Kirsten Anker Sørensen has an agreement, in the event that she has to resign, gives her the right (unless she has shown gross negligence of her duties according to laws), to receive salary for 9 months in addition to salary in the 3 months’ notice period. There are no other agreements for special compensation in the event of resignation, termination or change in the employment or position for other members of executive management or board members. 1) Annual base salary per 31 December. 2) Salary is amount paid during the year presented, including holiday pay, car allowance and compensation for entering into new pension plan. 3) Other benet includes all other cash and non-cash benet received during the year and includes taxable parts of; insurance premiums; discount on shares purchased; company car; housing allowance; per diem allowance; and telecommunication. Salary paid for previous positions within Multiconsult is included where relevant. REMUNERATION TO THE EXECUTIVE MANAGEMENT 2021 AND 2020 The table below displays the total remuneration to the executive management earned in 2021 and 2020 for the period the persons served as member of the executive management. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 114 115MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 1) Short-term loans for purchase of shares through to the compa- ny's share purchase program, on the same terms as other employ- ees of the company. 2) Shares owned by the members of the board on 31 December, including shares owned by the close associates. 3) Resigned as member of the board at General meeting 19 April 2021. 4) Elected as member of the board at General meeting 19 April 2021. 5) Elected by employees April 2021. 6) Resigned as member of the board at General meeting 22 April 2020. Amounts in NOK FIXED REMUNERATION Name of director, Position Year Board fees Committee fees Total remunera- tion Loans 1) Shares 2) Bård Mikkelsen, Chair, elected by shareholders 2021 497 333 42 333 539 667 N/A 28 933 2020 484 000 41 000 525 000 14 933 Hanne Rønneberg, elected by shareholders 2021 248 667 31 667 280 333 N/A 2 220 2020 242 000 31 000 273 000 2 220 Rikard Appelgren, elected by shareholders 2021 248 667 56 667 305 333 N/A 30 000 2020 242 000 62 000 304 000 30 000 Simen Lieungh, elected by shareholders 3) 2021 80 667 - 80 667 N/A N/A 2020 242 000 - 242 000 2 400 Tove Raanes, elected by shareholders 2021 248 667 60 667 309 333 N/A 5 313 2020 161 333 34 667 196 000 5 313 Sverre Hurum, elected by shareholders 4) 2021 168 000 - 168 000 N/A 22 226 2020 - - - N/A Liv-Kristine Rud, elected by employees 3) 2021 41 000 17 333 58 333 N/A N/A 2020 123 000 52 000 175 000 12 543 890 Runar Tyssebotn, elected by employees 3) 2021 41 000 10 333 51 333 N/A N/A 2020 123 000 31 000 154 000 60 810 30 946 Kristine Landsnes Augustson, elected by employees 3) 2021 41 000 - 41 000 N/A N/A 2020 123 000 - 123 000 26 877 1 500 Gunnar Vatnar, elected by employees 5) 2021 84 000 - 84 000 58 519 600 2020 - - - N/A N/A Karine Gjersø, elected by employees 5) 2021 84 000 21 333 105 333 58 519 1 948 2020 - - - N/A N/A Torben Wedervang, elected by employees 5) 2021 84 000 36 000 120 000 58 519 4 303 2020 - - - N/A N/A Hilde Hammervold, elected by shareholders 6) 2021 - - - N/A N/A 2020 80 667 17 333 98 000 N/A N/A Total 2021 1 867 000 276 333 2 143 333 175 557 95 543 Total 2020 1 821 000 269 000 2 090 000 100 230 88 202 4. Remuneration to the board of directors The board fee is determined by the members’ positions. The annual general meeting in 2021 resolved the remuneration for the board members for the period between the annual general meeting in 2021 and the annual general meeting in 2022. All shareholder elected board members shall acquire shares in Multiconsult ASA corresponding to 20 per cent of the gross board remuneration. The duty is in eect every year a board member is re-elected, until the market value of the shares equals the board re- muneration one year. The board members shall maintain such share ownership for the duration of the board period. The duties following this resolution expires following withdrawal by a board member. Only employee board members have loans from the company and are a part of the company's share purchase program for employees. Total board fees and remuneration paid for the separate board members are shown in the table below. REMUNERATION TO THE BOARD OF DIRECTORS 2021 AND 2020 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 116 117MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Amounts in NOK thousand 31.12.2021 31.12.2020 Deferred tax asset 33 351 34 023 Deferred tax 12 571 11 512 Net deferred tax asset in the balance sheet 20 780 22 511 Amounts in NOK thousand (except percentages) 2021 2020 Prot before income taxes 311 166 329 350 Expected income tax based on nominal tax rate in Norway (22%/22%) 68 456 72 457 Tax eect of the following items: Non-deductible expenses 2 404 1 353 Non-taxable income (570) (546) Share of prot from associated companies 97 532 Not recognised/reversal of previously not recognised deferred tax assets 3 849 6 519 Eect of change in tax rate - 2 909 Regulation of previous years' taxes 1 470 (3 248) Net withholding tax after tax credit 848 265 Other items (including currency and eect of deviation foreign vs. Norwegian tax rate) (55) (100) Income tax expenses 76 500 80 141 Eective tax rate 24.6% 24.3% RECONCILIATION FROM NOMINAL TO ACTUAL TAX RATE DEFERRED TAX IN THE BALANCE SHEET NOTE 10 FINANCIAL ITEMS Amounts in NOK thousand 2021 2020 Other interest income 1 489 2 298 Foreign currency gain 15 532 17 995 Other nancial income 3 411 2 398 Financial income 20 432 22 692 Other interest expenses 4 228 5 851 Foreign currency loss 16 433 14 147 Other nancial expenses 5 612 7 490 Financial expenses IFRS 16 32 062 34 630 Financial expenses 58 335 62 119 Net nancial items (37 903) (39 427) Other nancial income in 2021 includes NOK 1 204 thousand gain on changes in fair value of derivatives. Other nancial income in 2020 includes NOK 775 thousand gain on changes in fair value of derivatives and other nancial expenses in 2020 includes NOK 2 870 tho- usand loss on changes in fair value of derivatives. NOTE 11 TAXES Amounts in NOK thousand 2021 2020 Income taxes payable 81 173 92 350 Net withholding tax after tax credit 848 265 Regulation of previous years' taxes 1 470 (3 248) Change in deferred taxes (6 900) (12 135) Eect of change in tax rate - 2 909 Other items (91) - Income tax expenses 76 500 80 141 INCOME TAXES The income tax expense for the year was as follows: Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 118 119MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Amounts in NOK thousand 2021 2020 Expensed income taxes payable 1) (81 173) (92 350) Prepaid taxes 7 793 7 646 Tax payable/receivable from previous year 818 2 256 Income tax from acquisitions (3 252) - Income tax on employee share programme recognised in equity 2 557 2 008 Skattefunn (government R&D tax incentive scheme in Norway) 2 007 1 386 Currency eects (450) - Income tax payable recognised in the balance sheet 1) (71 699) (79 053) 1) The group has recognised tax payable related to the prots in subsidiaries for 2021, of which it is expected that NOK 5 599 thousand (NOK 7 040 thousand in 2020), will not be payable after taxable group contribution to other group companies have been determined by the general meetings in 2022 (2021). RECONCILIATION OF INCOME TAXES PAYABLE IN THE BALANCE SHEET Amounts in NOK thousand Gross Taxes Net 31 December 2019 (270 837) 67 657 (203 181) Change 2020 228 (50) 178 31 December 2020 (270 612) 67 607 (203 005) Change 2021 147 (32) 114 31 December 2021 (270 465) 67 575 (202 891) Income tax benets on the employee share purchase programme has been recognised in equity with NOK 2 008 thousand in 2020 and NOK 2 557 thousand in 2021, in total NOK 10 548 thousand. REMEASUREMENT OF PENSIONS (DEFINED BENEFIT OBLIGATION) AND RELATED TAX EFFECT Amounts in NOK thousand 2021 2020 Deferred tax assets 1 January 22 511 27 248 Deferred taxes arising from acquisitions (1 781) - Deferred tax assets 1 January reduced due to group contributions (7 040) (13 521) Changes in deferred taxes recognised in the statement of income 6 900 12 135 Eects of changes in tax rate in the statement of income - (2 909) Deferred taxes included in other comprehensive income (related to pensions) (32) (50) Currency and regulation of previous years taxes 222 (392) Deferred tax assets in the balance sheet (net) on 31 December 20 780 22 511 Due to losses and/or the exemption method, there are no signicant temporary dierences resulting in deferred taxes on retained ear- nings in subsidiaries, associated companies or joint ventures. RECONCILIATION OF DEFERRED TAX ASSETS IN THE BALANCE SHEET Amounts in NOK thousand 31.12.2021 31.12.2020 Non-current assets (164 096) (171 087) Current assets (24 186) (26 654) Liabilities and provisions 202 942 209 077 Taxable losses carried forward 1) 18 972 20 760 Deferred tax assets not recognised in the balance sheet (12 852) (9 584) Net deferred tax asset in the balance sheet 20 780 22 511 1) Group companies have recognised deferred tax assets related to tax losses that are expected to be utilised by receiving taxable group contributions from other group companies. The amount on 31 December 2021 is estimated to NOK 5 599 thousand (NOK 7 040 thousand on 31 December 2020). This will be done in the tax declarations for 2021 (2020) but is subject to the regulation for dividend and is conse- quently not recognised in the IFRS nancial statements for 2021 (2020). This also has an opposite eect on tax payable, and it is expected that the same amounts as deferred tax assets will not be payable after taxable group contribution has been determined by the general meetings in 2022 (2021). The group has recognised net deferred tax assets in Norway and in Poland. Realisation of the remaining deferred tax asset requires future prot. Temporary dierences related to IFRS 16 lease liabilities and right-of-use assets are presented as liabilities and provisions and non-cur- rent assets accordingly, in the table above. SPECIFICATION OF THE TAX EFFECT OF TEMPORARY DIFFERENCES Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 120 121MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 FINANCIAL STATUS DEFINED BENEFIT PLANS Amounts in NOK thousand 31.12.2021 31.12.2020 Calculated pension obligations (incl. social security tax) (21 929) (22 390) Pension assets (at market value) 16 525 16 441 Pension obligations in the nancial statements (5 403) (5 948) Of which included in Other non-current nancial assets and shares - 526 Of which pension obligations (5 403) (6 474) Due to the immaterial amounts, no further disclosure is provided for the net dened benet obligations. Amounts in NOK thousand 31.12.2021 31.12.2020 Trade receivables 738 430 635 495 Allowance for credit losses on receivables (see note 3) (7 549) (8 769) Total trade receivables 730 881 626 726 Work in progress 225 021 255 894 Prepaid expenses 53 797 49 674 Other 32 643 35 480 Total other current receivables and prepaid expenses 86 439 85 154 Total receivables and prepaid expenses 1 042 341 967 774 NOTE 13 RECEIVABLES, WORK IN PROGRESS AND PREPAID EXPENSES NOTE 12 PENSIONS The parent company and its subsidiaries in Norway have established pension plans that comply with the requirements in the Act on Man- datory Company Pensions. The group's subsidiaries both in Norway and abroad have dened contribution plans, except for a dened benet plan in LINK Arkitektur AS and Multiconsult Norge AS, and a multiemployer plan in LINK Arkitektur AB. There were 2 182 active members in the Multiconsult ASA and Mul- ticonsult Norge AS dened contribution plan at the end of 2021 (2020: 2 095). Starting from 1 January 2017, annual contributions to this plan are 5.55 per cent for contribution basis between 1G and 7.1G, and 18 per cent of the contribution basis between 7.1G and 12G. G is a base amount annually approved by the Norwegian parliament and was NOK 106 399 per 31 December 2021. In addition, Multiconsult Norge AS has individual dened benet plans that are unfunded, with recognised liabilities of NOK 6 129 thousand at the end of 2021 (2020: NOK 6 474 thousand). LINK Arkitektur AS has a dened benet plan that is closed and includes 9 retirees per 31 December 2021. Other plans in LINK Arki- tektur group are plans accounted for as contribution plans, with 551 active members on 31 December 2021 (2020: 402). This includes a multiemployer plan in LINK Arkitektur AB (ITP 2 plan) which is a dened benet plan. For 69 employees (2020: 80) in LINK Arkitektur AB the dened be- net pension commitments for retirement and family pensions are secured in the ITP 2 plan through insurance with Alecta. The group has not access to information in order to report its proportional sha- re of the plan's obligations, plan assets and costs, and it is therefore reported as a dened contribution plan. The expected contribution to the plan (premium) in 2022 is NOK 6 050 thousand. The pre- mium paid and expensed in 2021 was NOK 7 481 thousand (2020: NOK 7 340 thousand). The premium is calculated individually and is dependent on factors including salary, previously earned pensi- on, and expected remaining service period. The group's share of the total contributions to the plan amounted to 0.022 per cent in 2021 (2020: 0.022 per cent). The collective funding ratio is the market value of Alecta's assets as a percentage of insurance commitments calculated according to Alecta's actuarial methods and assump- tions, which are not consistent with IAS 19. The collective funding ratio is normally allowed to vary between 125 and 155 per cent. If Alecta's collective funding ratio is below 125 per cent or exceeds 155 per cent, action should be taken for consolidation level returning to the normal range. At low funding ratio, measures can be to raise the agreed price for new and existing contracts. At high funding ratio a measure may be to reduce premiums. At the end of 2021, the colle- ctive funding ratio was 169 per cent (2020: 144 per cent). Social security tax is calculated based on the pension plan's net nancing and included in the gross pension obligations. Pension expenses include related social security tax. Amounts in NOK thousand 2021 2020 Pension expenses retirement dened benet plan (123) (163) Recognised as nancial expenses 98 (138) Pension expenses dened contribution plan 186 560 176 238 Pension expenses in employee benet expenses (note 9) 186 534 175 936 Eect of remeasurement of net dened benet obligations (147) (228) PENSION EXPENSES Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 122 123MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 The recoverable amount is estimated value in use, based on disco- unted future cash flows. Future cash flows included in the impair- ment tests at the end of 2021 are based on board approved budget for 2022 and the company's strategy plan for the subsequent four years. IFRS 16 is included in both the DCF model and in the WACC. The growth in the forecast period of 2023 – 2026 is based on a moderate estimated growth in revenue and cost, in line with stra- tegy, protability targets and expected market outlook. The ambi- tions are protability above peer-group average and strengthened operations and value creation, the assumed growth in cash flow and protability is reflected in the budget and strategy plan period. The revenues in the budget show a moderate organic growth. The EBIT margin is reasonable and according to the strategy, and in line with the realised results in 2021. After the forecast period a terminal va- lue has been calculated, using a moderate growth in cash flow of 1.0 per cent, unchanged from the assumption used in the previous year impairment test. Reinvestments in property, plant and equipment have been set below depreciation for the rst ve years and equal to depreciation in the terminal year for the purposes of the analysis. The business is not investment heavy, and the basis for maintaining the capacity for future cash flows is mainly investment in employees, which is reflec- ted in the annual forecasted cash flows from operations. Therefore, EBIT is used as an estimate of cash flows in the terminal period. A calculated income tax has been included to be consistent with use of a post-tax discount rate. The key assumptions are determined to be the units' ability to deliver as expected in ongoing contracts, win new contracts, and/or obtain extensions of existing contracts, and to obtain the assumed billing ratios. Furthermore, that the prices achieved in the contracts at le- ast compensate for increased costs, especially employee expenses, thereby achieving the expected EBIT margin. The discount rate in the analysis is set to 7.3 per cent (2020: 6.0 per cent) after tax based on a calculation of the weighted average cost of capital (WACC). The same discount rate has been used for all cash generating units since the asset beta has been deemed the same in all CGUs and segments that the group operates. The main reason for the increase in WACC is a slightly increase in cost of equity and also a slightly increase in cost of debt mainly due to an increase in credit risk rate. The key assumptions used in the value in use calculation which is most sensitive to changes is operating revenue. However, in such a situation the company will bring the cost down to be in a normal steady business. For the CGUs Region Oslo, Region Norway, North, West, and Transportation the operating revenues must decrease by more than 10 per cent before an impairment occur. For Iterio the re- venue needs to decrease more than 9 per cent and LINK Arkitektur more than 5 per cent to indicate impairment. In the sensitivity analy- sis for WACC, EBITDA and EBIT the headroom is good and a material change in assumptions must occur before an impairment will take place. The impairment tests have not resulted in any impairment for good- will, property, plant and equipment or intangible assets related to any of the cash generating units. Management has evaluated that a reasonably possible change in key assumptions would not give rise to impairment on 31 December 2021. Amounts in NOK thousand 31.12.2021 31.12.2020 Belongs to segment LINK Arkitektur 149 447 151 615 LINK Arkitektur Region Oslo 434 429 131 894 Region Oslo Transportation 27 600 27 600 Region Oslo Region Norway 89 577 - Region Norway North 40 817 40 817 Region Norway West 39 381 39 381 Region Norway Middle 14 108 9 166 Region Norway Fredrikstad 9 098 9 098 Region Norway Iterio 41 224 44 143 International MC Polska 978 978 International Total 846 659 454 692 GOODWILL SPECIFIED PER CASH GENERATING UNIT: Amounts in NOK thousand Software Other intangible assets Total intangible assets Goodwill Acquisition cost 1 January 2020 Adjustment of opening balance Additions Disposals Currency translation dierences 95 987 4 790 2 487 32 (71) - - - - - 95 987 4 790 2 487 32 (71) 530 269 - - - 8 277 Acquisition cost 31 December 2020 103 161 - 103 161 538 546 Additions Additions from business combination Disposals Currency translation dierences 2 218 - 1 380 (327) - 9 100 - - 2 218 9 100 1 380 (327) - 397 054 - (6 606) Acquisition cost 31 December 2021 103 672 9 100 112 772 928 994 Accumulated amortisation 1 January 2020 Adjustment of opening balance Amortisation for the year Disposals Currency translation dierences 71 069 4 633 6 649 32 (70) - - - - - 71 069 4 633 6 649 32 (70) 82 715 - - - 1 140 Accumulated amortisation 31 December 2020 82 249 - 82 249 83 855 Amortisation for the year Disposals Currency translation dierences 5 362 1 380 (292) 1 647 - - 7 009 1 380 (292) - - (1 520) Accumulated amortisation 31 December 2021 82 939 1 647 87 586 82 335 Carrying amount 1 January 2020 Adjustment of opening balance Additions Disposals Amortisation for the year Currency translation dierences 24 919 157 2 487 - 6 649 (1) - - - - - - 24 919 157 2 487 - 6 649 (1) 447 554 - - - - 7 138 Carrying amount 31 December 2020 20 913 - 20 913 454 692 Additions Additions from business combination Disposals Amortisation for the year Currency translation dierences 2 218 - - 5 362 (35) - 9 100 - 1 647 - 2 218 9 100 - 7 009 (35) - 397 054 - - (5 087) Carrying amount 31 December 2021 17 733 7 453 25 187 846 659 NOTE 14 INTANGIBLE ASSETS AND GOODWILL Software includes standard software and licenses that are amor- tised on a straight-line basis over three years. In 2017 a new ERP system has been capitalised, which is amortised straight-line over its estimated useful life of ten years. Other intangible assets relate to order backlog from the acquisition of Erichsen & Horgen AS and Nordland Teknikk AS in 2021. The order backlog is amortised on a straight-line basis over its estimated lifetime, in the range 1-2 years. Impairment tests The group performs an assessment for impairment of goodwill at year end, or more often if there are indicators of impairment. The impairment test is based on identied cash generating units (CGUs) in the group. CGUs are changed if businesses are integrated or there are other organisational changes. CGUs are normally on a lower le- vel than the segment classication and follows regions or separate companies, given that separate nancial information is available. However, the largest parts of goodwill are allocated to the segments LINK Arkitektur and Region Oslo, as shown in the table below. CGUs identied to assess the value of the group's goodwill in 2021 and 2020 are disclosed in the table below. The carrying amounts of the- se cash generating units include property, plant and equipment, in- tangible assets, and allocated goodwill. Working capital cannot be split or reasonably allocated to the CGUs and is not included. To- tal net working capital was positive at year-end 2021, and with the headroom for each CGU it would not change any conclusions if wor- king capital could be allocated. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 124 125MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 NOTE 16 CASH AND CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED FUNDS NOTE 17 ASSOCIATED COMPANIES AND JOINT ARRANGEMENTS Amounts in NOK thousand 31.12.2021 31.12.2020 Cash and bank deposits, excluding restricted cash 156 165 277 435 Restricted cash - - Non-current nancial assets, restricted funds 15 316 15 847 Total cash and cash equivalents and restricted cash 171 481 293 282 Restricted funds on 31 December 2021 and 2020 relates mainly to Multiconsult Polska. Restricted funds in Multiconsult Polska are bank balances of NOK 14.7 million on 31 December 2021 (NOK 15.5 million on 31 December 2020) as security for parts of the bank guarantees issued to customers, see note 21. These bank guarantees have terms from 2022 to 2029. Cash and cash equivalents consist primarily of bank deposits. Amounts in NOK thousand FPS Concorcio SAM SpA Norplan Tanzania JV Indigo Total Opening balance 1 January 2020 1 708 380 7 233 3 187 12 509 Share of prot for the year 31 (122) (2 179) - (2 269) Currency eect - - - (13) (13) Closing balance 31 December 2020 1 739 258 5 054 3 174 10 227 Share of prot for the year 4 (28) 228 - 204 Currency eect - - - (129) (129) Closing balance 31 December 2021 1 743 230 5 282 3 045 10 302 None of the joint ventures and associated companies are deemed signicant for the group, whether separately or combined. Conse- quently, no further details are provided. Project partnership - joint operations The group has for some projects entered into partnership agree- ments. Some of these have been assessed as joint operations. Par- ticipants work together to deliver a project in cooperation through a common project group. There are no assets in these project groups. Each participant is responsible for delivering the services that it has agreed to deliver, as well as being responsible for its own expenses and having a right to agreed revenues from the services the parti- cipant performs. Each participant uses its own assets, and obligati- ons in the operation are limited to parts of the fee that may be held back to cover common costs (for example insurance premiums and travel expenses). One of the parties is typically appointed project manager with specic responsibilities in the project group. In these partnerships the participants are in most cases jointly liable towards the client, and severally or proportionately liable towards each oth- er for claims from the client. The mentioned proportional liability is normally based on each party’s share of the turnover in the project group, at the time when the client‘s claim is made. The main projects that are organised in this manner that are considered joint opera- tions are Kampflybasen, Tønsberg hospital, Fornebubanen and E39 Stord-Os Bjørnafjorden, Forsvarsbygg, Daugava HPP and the new hospital at Gaustad (nye Rikshospitalet), all in Multiconsult Norge AS. There is no xed participating share in these operations. In 2021 these projects contributed revenues of NOK 265 million (NOK 261 million in 2020). Amounts in NOK thousand Buildings and other real estate Other machines, plant, xtures and ttings Leasehold improvements Total property, plant and equipment Acquisition cost 1 January 2020 8 420 405 456 70 089 483 966 Adjustment of opening balance (204) (3 432) 339 (3 298) Additions 310 33 488 1 825 35 623 Disposals - 12 894 - 12 894 Currency translation dierences 519 2 685 179 3 383 Acquisition cost 31 December 2020 9 044 425 303 72 433 506 780 Additions from business combinations - 2 173 1 948 4 120 Additions 1 088 42 784 1 229 45 101 Disposals 503 22 277 105 22 885 Currency translation dierences (539) (2 599) (152) (3 290) Acquisition cost 31 December 2021 9 090 445 384 75 352 529 827 Acc. depreciation 1 January 2020 5 366 307 028 59 077 371 472 Adjustment of opening balance (204) (3 291) 254 (3 241) Depreciation for the year 908 39 177 3 579 43 633 Disposals - 10 953 - 10 953 Currency translation dierences 345 1 744 113 2 199 Acc. depreciation 31 December 2020 6 414 333 705 63 022 403 140 Depreciation for the year 899 37 484 2 880 41 263 Disposals 503 21 877 52 22 431 Currency translation dierences (365) (1 957) (126) (2 447) Acc. depreciation 31 December 2021 6 446 347 355 65 724 419 524 Carrying amount 1 January 2020 3 055 98 428 11 012 112 494 Adjustment of opening balance - (141) 85 (56) Additions 310 33 488 1 825 35 623 Disposals - 1 942 - 1 942 Depreciation for the year 908 39 177 3 579 43 663 Currency translation dierences 173 941 68 1 184 Carrying amount 31 December 2020 2 630 91 598 9 411 103 640 Additions from business combination - 2 173 1 948 4 120 Additions 1 088 42 784 1 229 45 101 Disposals - 400 53 453 Depreciation for the year 899 37 484 2 880 41 263 Currency translation dierences (176) (643) (25) (844) Carrying amount 31 December 2021 2 644 98 030 9 628 110 303 Useful life 10 - 50 years 3 - 8 years Same as equivalent assets, max leasing period Depreciation plan Straight-line Straight-line NOTE 15 PROPERTY, PLANT AND EQUIPMENT Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 126 127MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 31 December 2021 Amounts in NOK thousand Oce premises Property, plant and equipment Total Due within 1 year 166 438 2 111 168 549 Due more than 1 year, but within 5 years 548 062 4 308 552 371 Due more than 5 years 205 856 - 205 856 Total undiscounted lease liabilities 920 356 6 419 926 775 31 December 2020 Amounts in NOK thousand Oce premises Property, plant and equipment Total Due within 1 year 159 581 2 472 162 053 Due more than 1 year, but within 5 years 540 362 269 540 630 Due more than 5 years 280 910 - 280 910 Total undiscounted lease liabilities 980 853 2 741 983 594 UNDISCOUNTED LEASE LIABILITIES AND MATURITY OF CASH OUTFLOWS SHORT-TERM LEASES AND LOW-VALUE ASSET LEASE EXPENSE The group has renewal options for several contracts that are not recognised, as per the principles described in note 2A. For material contracts we estimate that the lease cash outflows due more than one year, but within ve years would have been NOK 6 million higher, and cash outflows due more than ve and less than ten years would have been NOK 118 million higher, had these renewal options been recognised. The group has not entered into any new material lease agreements not yet recognised in the consolidated statement of nancial position. The carrying amount of right-of-use assets at the end of the reporting period by class of underlying asset is as follows: Amounts in NOK thousand 31.12.2021 31.12.2020 Property 757 749 800 434 Cars 9 120 5 647 Total 766 870 806 081 The expenses related to short-term leases (less than 12 months) and low-value assets are summarised in the table below. For these leases the practical expedients in IFRS 16 have been applied, and the lease payments associated with those leases are recognised as an expense and classied as other operating expenses. Amounts in NOK thousand 2021 2020 Short-term leases 13 708 15 093 Low value asset 6 164 6 279 Total 19 871 21 372 Amounts in NOK thousand Assets Liabilities Balance 1 January 2020 898 208 914 558 Additions 86 520 86 520 Reassessments (4 009) (4 009) Depreciation (145 694) N/A Impairment (30 000) N/A Interest expense N/A 34 667 Lease payments (interest and instalments) N/A (168 737) Terminations (1 318) (1 221) Currency 2 374 2 756 Balance 31 December 2020 806 081 864 533 Additions 123 405 123 405 Reassessments (16 776) (16 776) Depreciation (144 846) N/A Impairment - N/A Interest expense N/A 32 062 Lease payments (interest and instalments) N/A (172 596) Terminations (226) (234) Currency (767) (587) Balance 31 December 2021 766 870 829 808 In 2020 the group performed an assessment of recoverable amount of the group’s property right-of-use (ROU) assets based on impai- rment indicators existing on 30 September 2020. The identied in- dicators were related to a change in the use of the right-of-use as- sets. Recoverable amount was estimated to be NOK 30 million lower than book value. Therefore, the group recognised an impairment loss of NOK 30 million in 2020. The impairment loss was recognised in segment Not allocated. The group has not identied any impair- ment indicators in 2021, and no impairment is recognised in 2021. NOTE 18 LEASES Multiconsult has two classes of assets that has been reported as right-of-use assets: buildings (primarily oce premises) and cars. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES Depreciation charge for right-of-use assets (previously operating lease), is split by class of underlying asset as follows: Amounts in NOK thousand 2021 2020 Property 142 618 143 331 Cars 2 228 2 363 Total 144 846 145 694 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 128 129MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 NOTE 21 GUARANTEES, PLEDGES AND SECURITIES PROVIDED GUARANTEE OBLIGATIONS NOT RECOGNISED IN THE BALANCE SHEET Amounts in NOK thousand 31.12.2021 31.12.2020 Bank guarantee - guarantees towards customers 122 956 111 806 Bank guarantee - guarantees for other obligations 46 765 40 027 Guarantee - employee tax deductions 134 600 134 600 Parent company guarantees - for associates and joint ventures - 3 600 Parent company guarantees - for subsidiaries 17 351 21 369 Total guarantees 321 672 311 402 Bank guarantees towards customers are related to assignments where the customer demands security for contract responsibilities. Other bank guarantees are primarily guaranteeing for rent of premises. At the end of 2021, LINK Arkitektur AS, Multiconsult Norge AS and Multiconsult ASA holds guarantees for employee tax deductions for a total of NOK 134.6 million. Parent company guarantees on 31 December 2021 relates to rent of premises of NOK 17.4 million towards subsidiaries. The parent company's bank facility agreements with the lender includes a negative pledge clause in relation to new borrowings of the group. Multiconsult ASA has provided a surety of NOK 400 million for Mul- ticonsult ASA’s liabilities towards the lender and provided sureties The date for settlement of project responsibility cases is often out- side the group's control and it is not possible to make a reliable es- timate of settlement dates. The processes are extensive with nego- tiations with many parties and often results in long legal processes. The time-period from reporting a case to nal settlement can take several years. The size of the settlement can vary considerably. The provision related to a claim is calculated on the basis of the expe- cted compensation, own risk deductibles and the claimed amount. As a consequence of the inherent uncertainty in both amount and timing of the settlement, the provision is not discounted. The company's insurance coverage for project responsibilities is pri- marily based on a collective agreement for engineering consultants. This insurance takes the form of standard policies for engineering projects, with an excess of NOK 300 000 per claim and normally with a maximum coverage of up to 150 times the Norwegian nati- onal insurance base rate (G) – about NOK 16 million, which is the standard limitation of liability in Multiconsult’s contracts. Uninsured liability is by agreement normally limited to 60 G about NOK 6.3 mil- lion, with exceptions and higher agreed limitations for such liability in some larger projects. There may however be signicant project- and other operational risks where limitations of liability do not apply, that are not covered by the mentioned insurances and/or where the insurance coverage is insucient to cover the risk. In some projects special provisions regarding liability apply or limitations of liability do not apply. This increases Multiconsult’s possible liability and risk. In cases of gross negligence or wilful misconduct limitations on liabi- lity as a main rule do not apply, and insurance coverage may be re- duced. Furthermore, Multiconsult has entered into multiple project partnerships with joint and several liability or joint and proportional liability that may in under particular circumstances increase risk. In the latter cases Multiconsult’s proportional liability is normally ba- sed on the share of the turnover in the project group. The mentioned risks may, in some adverse circumstances, have a signicant negati- ve impact on the nancial performance of the group. The company performs a thorough review of each claim. Project responsibility cases therefore lead to both recognised provisions and contingent liabilities where no provision has been recognised because the group has assessed the probability of an outflow of economic resources from the group to be below 50 per cent. In connection with a project completed several years ago, one of Multiconsult Norge AS’ customers has taken legal action to seek compensation for losses amounting to approximately NOK 90 milli- on. Multiconsult considers the claim without merit and has defended itself against the lawsuit. In the fourth quarter 2021, Multiconsult won the case fully in the court of rst instance, but the counterpar- ty has led an appeal to the Court of Appeals. As of the publishing of this report, no date has been set for the hearing in the Court of Appeals. The provision on 31 December 2021 is related to several projects, but there is no signicant provision related to any single project. NOTE 19 OTHER CURRENT LIABILITIES Amounts in NOK thousand 31.12.2021 31.12.2020 Salaries payable, holiday pay, bonus etc. 349 382 304 453 Other accrued expenses 18 353 18 983 Other 8 358 11 469 Total other current liabilities 376 093 334 905 The group completes a signicant number of assignments during a year. Normally, the group enters into agreements with the custo- mers limiting its responsibilities. During the execution of an assign- ment, defects or damages as a result of the deliveries may be iden- tied that could lead to claims being made towards the group. When it is probable (over 50 per cent) that a claim will result in outflow of The reimbursement from the insurance company is directly linked to the cases and the actual additions, settlements and reversals are es- timated and incurred simultaneously. Consequently, the table below present changes in the provisions net of the assets for reimbursement. economic resources from the group, a provision for the estimated liability is recognised. The provisions are presented as liabilities in the balance sheet, while the expected reimbursements from the insurance company related to recognised provisions are presented as a separate asset. PROJECT RESPONSIBILITY Amounts in NOK thousand Project responsibility Net provisions 1 January 2020 7 150 Additions Reversals Utilised 3 750 (800) (2 050) Net provisions 31 December 2020 8 050 Additions Reversals Utilised 2 710 (1 750) (2 600) Net provisions 31 December 2021 6 410 Amounts in NOK thousand 31.12.2021 31.12.2020 Gross provisions 24 712 31 222 Assets for reimbursement of provisions 18 302 23 172 Net provisions 6 410 8 050 NOTE 20 PROVISIONS, DISPUTES AND CONTINGENT LIABILITIES Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 130 131MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Total number of shares are 27 430 523 with par value per share of NOK 0.50. All shares that are part of the parent company's share capital belong to the same share class with the same rights. The company’s articles of association set forth that no shareholder, including such shareholder’s close associates, may vote for more than 25 per cent of the shares at the general meeting. The number of treasury shares (own shares) at the end of 2021 was 33 336 (2020: 40 741 shares). During 2021 and 2020, the company purchased own shares that were sold in the employee share purcha- se programme, see note 9. The Annual General Meeting held on 19 April 2021 authorised the board of directors pursuant to §10-14 (1) of the Public Limited Liabi- lity Companies Act to increase the company's share capital by up to NOK 1 348 520 in one or more share issues. The authority may only be used to issue shares as consideration in connection with acqui- sitions, to nance acquisitions or to issue shares in connection with incentive schemes for the employees of the Multiconsult group. The shareholders' pre-emptive rights under §10-4 of the Public Limi- ted Liability Companies Act may be set aside. The authority covers capital increases against contributions in cash and contributions other than in cash. The authority covers the right to incur special obligations for the Company, ref. §10-2 of the Public Limited Liabi- lity Companies Act. The authority covers resolutions on mergers in accordance with §13-5 of the Public Limited Liability Companies Act. The authority may also be used in take-over situations, ref. §6-17 (2) of the Securities Trading Act. The Annual General Meeting held on 19 April 2021 authorised the board of directors pursuant to §9-4 of the Public Limited Liability Companies Act to acquire shares in the company ("own shares") on behalf of the company with an aggregate nominal value of up to 1 348 520. If the company disposes of own shares, this amount shall be increased by an amount equal to the nominal value of the shares disposed of. When acquiring own shares, the consideration per sha- re may not be less than NOK 5 and not exceed NOK 500. The board of directors determines the methods by which own shares can be acquired or disposed of. Both authorities described above shall remain in force until the Annual General Meeting in 2022, but in no event later than 30 June 2022. NOTE 23 RELATED PARTIES The group's related parties are: Key management personnel, close members of the family of a per- son and entities that are controlled or jointly controlled by any of these. Key management personnel are dened as the board of dire- ctors and the executive management. See note 9 Employee bene- t expenses for information on remuneration for key management personnel and information on share ownership. There were no other transactions with key management personnel in 2021 and 2020. Stiftelsen Multiconsult had an ownership share of 21.9 per cent on 31 December 2021 (21.7 per cent on 31 December 2020). The compa- ny's assessment is that Stiftelsen Multiconsult has signicant influ- ence. Multiconsult has recognised revenues from sales to Stiftelsen Multiconsult of NOK 5 096 thousand in 2021 (NOK 3 419 thousand in 2020) and had receivables of NOK 269 thousand on 31 December 2021 (NOK 488 thousand on 31 December 2020). The company and its subsidiaries are also considered related par- ties. Transactions and balances are eliminated in the consolidated nancial statements and are not disclosed in this note for the group. Refer also to note 17 for the parent company. Refer to note 17 Associated companies and joint arrangements for more information on these related parties. TRANSACTIONS AND BALANCES WITH JOINT VENTURES AND ASSOCIATED COMPANIES Amounts in NOK thousand 2021 2020 Revenues 28 335 25 029 Expenses 145 2 370 Receivables 3 988 46 Liabilities - 47 Guarantees provided - 3 600 NOTE 22 SHAREHOLDER INFORMATION Number of shares Ownership share Stiftelsen Multiconsult 5 999 559 21.9% Odin Norge 2 621 242 9.6% Vevlen Gård AS 1 550 000 5.7% Stenshagen Invest AS 1 130 519 4.1% AAT Invest AS 800 000 2.9% The Bank of New York Mellon SA/NV 776 569 2.8% VJ Invest AS 725 271 2.6% OBOS BBL 666 572 2.4% Pareto Aksje Norge Verdipapirfond 613 330 2.2% Varner Equities AS 434 685 1.6% Verdipapirfondet Holberg Norge 400 000 1.5% Skandinaviska Enskilda Banken AB 286 455 1.0% Verdipapirfondet Pareto Investment 274 000 1.0% Other 11 152 321 40.7% Total number of shares 27 430 523 100% The following table shows shareholders owning 1 per cent or more of Multiconsult ASA shares on 31 December 2021: in the amount of NOK 200 million for Multiconsult Norge AS’ and NOK 5 million for LINK Arkitektur AS’ liabilities towards the lender. Multiconsult Norge AS has provided a surety of NOK 800 million for Multiconsult ASA’s liabilities towards the lender. Multiconsult ASA and Multiconsult Norge AS have both pledged trade receivables, inventory and property, plant and equipment. The carrying value of the pledged assets in Multiconsult Norge AS on 31 December 2021 is NOK 495.7 million for trade receivables, NOK 0 for inventory and NOK 89.9 million for property, plant and equipment. For Multiconsult ASA the carrying values on 31 December 2021 is NOK 56.0 million for trade receivables and NOK 0 for inventory and property, plant and equipment. On 31 December 2021, Multiconsult ASA had a guarantee facility of NOK 120.0 million, of which NOK 59.2 million was drawn (2020: NOK 54.8 million). Multiconsult ASA or any fully owned subsidiary (un- der surety from Multiconsult ASA) may draw under the guarantee facility. The guarantee facility is renewed annually but guarantees included in the limit may have a term of up to ve years. Multiconsult Polska holds a bank guarantee facility of PLN 55 mil- lion, NOK 119.5 million, under which PLN 49.8 million, NOK 108.2 million was drawn on 31 December 2021. A cash deposit is required for employee tax deductions, VAT account and issued guarantees in Poland, and these deposits are held on bank accounts in the name of Multiconsult Polska. This is restricted cash and amounted to a total of PLN 6.8 million, NOK 14.7 million on 31 December 2021, included in non-current nancial assets in the balance sheet, see note 16. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 132 133MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 ALTERNATIVE PERFORMANCE MEASURES (APM) Amounts in NOK thousand 2021 2020 EBITDA 542 845 598 686 Net operating revenues 3 803 736 3 660 936 EBITDA margin 14.3% 16.4% EBIT 348 864 371 047 Amortisation of acquisition-related intangible assets 1 647 - EBITA 350 511 371 047 EBITA 350 511 371 047 Net operating revenues 3 803 736 3 660 936 EBITA margin 9.2% 10.1% EBIT 348 864 371 047 Net operating revenues 3 803 736 3 660 936 EBIT margin 9.2% 10.1% Amounts in NOK thousand 31.12.2021 31.12.2020 Total shareholders' equity 850 123 773 615 Total assets 3 032 931 2 718 185 Equity ratio 28.0% 28.5% ADJUSTED Reported gures adjusted for restructuring cost and other items aecting comparability. EBIT ex. restructuring cost is calculated by excluding one-o nextLEVEL restructuring cost of NOK 30.0 million in 2020. Amounts in NOK thousand 2021 2020 Depreciation and amortisation 193 981 197 639 Impairment - 30 000 Restructuring cost - (30 000) Adjusted depreciation, amortisation and impairment 193 981 197 639 EBITDA 542 845 598 686 Adjusted depreciation, amortisation and impairment 193 981 197 639 EBIT ex. restructuring cost 348 864 401 047 EBIT ex. restructuring cost 348 864 401 047 Adjusted net operating revenues 3 803 736 3 660 936 EBIT margin ex. restructuring cost 9.2% 11.0% MARGINS AND RATIOS NOTE 24 EARNINGS PER SHARE AND DIVIDENDS NOTE 25 EVENTS AFTER THE REPORTING PERIOD In 2021 and 2020, there were no potential dilutive eects on earnings that are attributable to owners of Multiconsult ASA or on the number of shares. Basic and diluted earnings per share are therefore the same. After the reporting period ended on 31 December 2021 and up to the date these consolidated nancial statements have been approved for issue, the following events have been identied that require disclosure: Acquisition of Smidt & Ingebrigtsen AS On 19 January 2022, Multiconsult ASA announced its agreement to acquire 100% of the shares in Smidt & Ingebrigtsen AS and strengt- hen its competence and presence in Bergen. Smidt & Ingebrigtsen AS is a consulting engineering company with a solid market positi- on both in the public and private construction and civil engineering market in western Norway. Closing date for the transaction was on 1 February 2022. The total purchase price was set to NOK 11.0 million, subject to subsequent adjustment pending the value of net debt and normalised working capital at the transaction date. Other events The direct and indirect potential impact of the ongoing conflict in Ukraine is currently not possible to assess, but has currently had limited or no impact on Multiconsult. No further events have been identied that require disclosure. 2021 2020 Prot after tax attributable to owners of Multiconsult ASA (NOK thousand) 234 666 249 209 Weighted average number of shares (excl. treasury shares) 27 080 810 26 930 713 Earnings per share 8.67 9.25 DIVIDENDS Dividends paid to owners of Multiconsult ASA (NOK thousand) 215 437 53 626 Dividends per share 8.00 2.00 Dividends proposed after 31 December 2020 (NOK thousand) 1) 164 583 Dividends proposed after 31 December 2020 (per share) 1) 6.00 1) Dividends to be adopted by the Annual General Meeting 7 April 2022. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 134 135MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 COVENANTS APMs relevant in calculating loan covenants and nancial targets. Covenant net interest-bearing liabilities/EBITDA Amounts in NOK thousand 31.12.2021 31.12.2020 Cash and cash equivalents, excluding restricted cash 156 165 277 435 Cash and cash equivalents, restricted cash - - Non-current nancial assets, restricted funds 15 316 15 847 Interest-bearing liabilities 1 009 808 864 533 Net interest-bearing liabilities including IFRS 16 lease liabilities 838 327 571 252 Non-current and current IFRS 16 lease liabilities 829 808 864 533 Net interest-bearing liabilities excluding IFRS 16 lease liabilities 8 519 (293 282) Net interest-bearing liabilities excluding IFRS 16 lease liabilities, restricted cash and restricted funds 23 835 (277 435) Amounts in NOK thousand 2021 2020 Operating prot before depreciation and amortisation (EBITDA) 542 845 598 686 Lease payments recognised as operational cost prior to IFRS 16 implementation (172 596) (168 767) EBITDA excluding IFRS 16 eects 370 249 429 918 Amounts in NOK thousand 31.12.2021 31.12.2020 Net interest-bearing liabilities excluding IFRS 16 lease liabilities, restricted cash and restricted funds 23 835 (277 435) EBITDA excluding IFRS 16 eects 370 249 429 918 Net interest-bearing liabilities/EBITDA (covenant net interest-bearing liabilities/EBITDA) 0.06 (0.65) Covenant equity ratio Amounts in NOK thousand 31.12.2021 31.12.2020 Total shareholders' equity 850 123 773 615 Right-of-use assets (766 870) (806 081) Non-current lease liabilities 690 771 733 035 Current lease liabilities 139 037 131 499 Total shareholders' equity excluding IFRS 16 assets and liabilities 913 060 832 068 Total assets 3 032 931 2 718 185 Right-of-use assets (766 870) (806 081) Total assets excluding IFRS 16 assets 2 266 061 1 912 105 Total shareholders' equity excluding IFRS 16 assets and liabilities 913 060 832 068 Total assets excluding IFRS 16 assets 2 266 061 1 912 105 Equity ratio excluding IFRS 16 assets and liabilities (covenant equity ratio) 40.3% 43.5% CALENDAR EFFECT There was a calendar eect of one less working day which had a negative impact on Net operating revenue and EBIT of approximately NOK 11.2 million compared to 2020. Amounts in NOK thousand 2021 2020 EBIT ex. restructuring cost 348 864 401 047 Estimated calendar eect 11 200 - EBIT ex. restructuring cost and adjusted for calendar eect 360 064 401 047 EBIT ex. restructuring cost and adjusted for calendar eect 360 064 401 047 Adjusted net operating revenues including calendar eect 3 814 936 3 660 936 EBIT margin ex. restructuring cost and adjusted for calendar eect 9.4% 11.0% Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Group accounts 136 137MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 APPENDIX - SUSTAINABILITY AND CORPORATE RESPONSIBILITY ENVIRONMENT Climate emissions Tables of total emission per subsidiary MULTICONSULT NORGE AS 2021 kg CO2e/full- time equivalent 2020 kg CO2e/full- time equivalent 2019 kg CO2e/full- time equivalent GHG Protocol Category Description tonne CO2e tonne CO2e tonne CO2e SCOPE 1 934 435 979 482 1 057 506 Fuel use in smaller company cars 308 144 317 156 316 151 Fuel use in heavier company cars 168 78 138 68 189 91 Fuel use in machines (boats, drilling rig) 458 213 524 258 552 264 SCOPE 2 2 021 942 849 418 972 465 Energy use buildings 2 018 941 847 417 970 464 of which is electricity 1 853 864 708 348 809 387 of which is district heating/cooling 165 77 139 68 161 77 Electricity use cars 3 1 2 1 3 1 SCOPE 3 10 471 5 161 646 274 2 387 1 142 Scope 3: 6. Business travel Air travel 402 198 428 167 2 102 1 005 Scope 3: 6. Business travel Railway 31 15 Scope 3: 6. Business travel Mileage (all fossil fuel) 133 66 156 77 218 104 Scope 3: 6. Business travel Rental car 12 6 10 5 X X Scope 3: 5. Waste genera- ted in operations Residual waste 50 25 52 26 67 32 Scope 3: 8. Upstream lea- sed assets Buildings 1 374 677 X X X X Scope 3: 1. Purchased goods & services Purchased goods and services 7 399 3 647 X X X X Scope 3: 2. Capital goods Capital goods 607 299 X X X X Scope 3: 7. Employee commuting Employee commuting 462 228 X X X X SUM 13 426 6 538 ERICHSEN & HORGEN AS AND INGENIØRFIRMAET MALNES & ENDRESEN AS Description tonne CO2e kg CO2e/full-time equivalent SCOPE 1 36 387 Fuel use in company cars 36 387 SCOPE 2 300 3 226 Energy use buildings 300 3 226 of which is electricity 266 2 860 of which is district heating/cooling 34 366 SCOPE 3 63 677 Air travel 30 325 Railway 2 18 Mileage (all fossil fuel) 28 296 Residual waste 3 37 SUM 399 4 290 GRI 305-4: GHG Emissions intensity ratio (scope 1 and 2) 3.61 tonne CO2e/full- time equivalent LINK ARKITEKTUR AS Description tonne CO2e kg CO2e/full-time equivalent SCOPE 1 0 0 Fuel use in company cars 0 0 SCOPE 2 243 1 030 Energy use buildings 243 1 030 of which is electricity 243 1 030 SCOPE 3 100 422 Air travel 32 134 Railway 0 0 Residual waste 4 19 Employee commuting 63 269 SUM 343 1 452 GRI 305-4: GHG Emissions intensity ratio (scope 1 and 2) 1.03 tonne CO2e/full- time equivalent MULTICONSULT NORGE AS GHG emissions intensity ratio (scope 1 og 2): Year tonne CO2e/full-time equivalent 2021 1.46 2020 0.90 2019 0.97 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Appendix – Sustainability & GRI index 138 139MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 ITERIO AB Description tonne CO2e kg CO2e/full-time equivalent SCOPE 1 42 346 Fuel use in company cars 42 346 SCOPE 2 3 22 Energy use buildings 3 22 of which is electricity 3 22 SCOPE 3 48 398 Air travel 15 128 Railway 0.82 7 Residual waste 2 19 Employee commuting 30 245 SUM 93 766 GRI 305-4: GHG Emissions intensity ratio (scope 1 and 2) 0.37 tonne CO2e/full- time equivalent LINK ARKITEKTUR AB Description tonne CO2e kg CO2e/full-time equivalent SCOPE 1 0 0 Fuel use in company cars 0 0 SCOPE 2 46 338 Energy use buildings 46 338 of which is electricity 25 187 of which is district heating/cooling 20 151 SCOPE 3 95 701 Air travel 51 377 Railway 2 15 Residual waste 3 21 Employee commuting 39 288 SUM 140 1 038 GRI 305-4: GHG Emissions intensity ratio (scope 1 and 2) 0.34 tonne CO2e/full- time equivalent MULTICONSULT POLSKA Description tonne CO2e kg CO2e/full-time equivalent SCOPE 1 150 537 Fuel use in company cars 150 537 SCOPE 2 206 740 Energy use buildings 206 740 of which is electricity 206 740 SCOPE 3 101 362 Residual waste 4 13 Employee commuting 98 350 SUM 457 1 639 GRI 305-4: GHG Emissions intensity ratio (scope 1 and 2) 1.28 tonne CO2e/full- time equivalent LINK ARKITEKTUR A/S Description tonne CO2e kg CO2e/full-time equivalent SCOPE 1 61 858 Fuel use in company cars 31 438 Gas used for heating 30 420 SCOPE 2 39 550 Energy use buildings 39 550 of which is electricity 39 550 SCOPE 3 19 268 Employee commuting 19 268 SUM 119 1 676 GRI 305-4: GHG Emissions intensity ratio (scope 1 and 2) 1.41 tonne CO2e/full- time equivalent Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Appendix – Sustainability & GRI index 140 141MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 GHG EMISSION METHODOLOGY - COMMENTS FOLLOWING THE TABLES IN THE APPENDIX. Scope 1 – Methodology For the GHG Emissions in scope 1 the calculations follow the methodology of Environmental Lighthouse (Miljøfyrtårn). The following comments are relevant to point out: • Fuel use in 2020 and 2021 includes fuel used in Multi- consult’s company cars (passenger cars and vans). • The total fuel use is based on purchases using dedica- ted company cards as well as employees personal cards. For 2021 about 7 400 litres of fuel are not accounted for in scope 1 as the purchases are unknown. They may be included in scope 3 due to the use of wrong description in the accounts. • In 2019, fuel purchased with employees’ personal cards or from Shell and XY-Norway, is not included in the GHG accounts. • Emission factors: Petrol: 3.01125 kg CO2e/litre. Diesel: 3.22644 kg CO2e/litre. Gas oil: 3.22644 kg CO2e/litre, HVO100: 0.4 kg CO2e/litre. (Source: Environmental Lighthouse) • GHG Emissions from machines are mainly from boats and drilling rigs, and are related to the following fuels: petrol, diesel, gas oil and HVO100. Scope 2 – Methodology For the GHG Emissions in scope 2 the calculations follow the methodology of Environmental lighthouse (Miljøfyrtårn). The following comments are relevant to point out: • Energy consumption in Multiconsult Norge AS’s pre- mises includes oces, cabins and workshops. It has not been possible to deduct the electricity use from the charging electric vehicles, so there may be somewhat double counting of GHG emissions. • GHG emissions from electricity in 2021 are calculated using a market-based method. This means that residual mix (0.531 kg CO2e/kWh, Source: Klimapartnere, 2018)) is used for electricity without a Guarantee of Origin, while Norwegian production mix for electricity (0.17 kg CO2e/kWh, Source: Asplan Viak) is used for electricity with a Guarantee of Origin. • For 2019 and 2020, GHG emissions from electricity are calculated with the NVE-recommended emission factor of 0.119 kg CO2e/kWh for all electricity. • For district heating in Norway the emission factors used are 0.116 kg CO2e/kWh (Source: Environmental Ligh- thouse) and 0.055 kg CO2e/kWh for district cooling (Source: Environmental lighthouse). Only the oce in Kristiansand has reported district cooling. • Emission factors for electricity, district heating and cooling outside of Norway are found using the software One Click LCA. For district heating in Sweden emissi- on factors in the tool “Lokala miljövärden 2020” were used. • GHG emissions from driving electric cars are calculated using the emission factor 0.024 kg CO2e/km (Source: Environmental Lighthouse). Scope 3 Methodology • Air travel - GHG emissions from air travel in Multiconsult Norge AS is provided by the travel agency Egencia. • Mileage - GHG emissions from Mileage includes both electric and fossil cars. Mileage has been paid for about 872 000 km. It is estimated that about 35% of km driven by fossil cars use petrol with an average consumption of 0.77 litres/10 km, and that the remaining number of km are diesel cars with an average consumption of 0.59 litres/10 km. Emission factors for petrol and diesel are the same as in scope 1. • Rental car - Hertz and Sixt have provided data for cal- culating GHG emissions related to rental cars. • Residual waste - Only GHG emissions related to residual waste have been calculated. Emission factors used are 0.55 kg CO2e/kg waste (Source: Environmental Light- house) and 0.195 kg CO2e/kg waste for residual waste which is sorted in central sorting plants. The latter only applies to waste from the Sandnes oce. Waste quan- tities from the oce in Egersund, the smaller oces (fe- wer than 5 employees) and the cabins are not included in the accounts. For the year 2019, only waste quanti- ties from the Environmental Lighthouse certied oces are included in the climate accounts. • Purchased goods and services and Capital goods – the GHG emissions are calculated based on the company’s accounts. The emissions factors are based on Input/ Output-Analysis and are provided by Asplan Viak. • Buildings - The GHG emissions reflect the annual emis- sions of the building distributed over the lifetime of the building. The emissions are calculated based on rental costs with emission factors provided by Asplan Viak. Only buildings where energy costs are not inclu- ded in the rent are included. GHG emissions related to common areas like receptions and canteens are exclu- ded due to lack of data. Consequently, the emissions are underestimated. The following oces are not included: Sandnes, Ski, Alta, Sandnessjøen, Mo i Rana, Steinkjer, Trondheim, Voss, Grimstad, Skien, Tønsberg. • Employee commuting - The calculations are based on a survey disseminated to all employees in Multiconsult and its subsidiaries in Scandinavia, Poland and the UK. The respondents were asked about how and how often they had commuted to work in 2021. Based on a total of 1 800 answers and a list of assumptions, we have esti- mated the respondents’ contributions to emissions from commuting to work in 2021. Estimates of total emissi- ons from each company were obtained by multiplying the average emissions per employee with the num- ber of employees (head count) in the given company. GHG Emissions intensity ratio: The number of full-time equ- ivalents and not number of employees (head count) is used in the calculation. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Appendix – Sustainability & GRI index 142 143MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 GRI Standard Gri Ref. no GRI Disclosure Comment Page reference GRI 2 General disclosure 2-1 Organizational details 9 2-2 Entities included in the organization’s sustainability reporting 1.b The reporting on the smaller subsidiaries is limited 50 2-3 Reporting period, frequency and contact point Annual reporting 45 2-4 Restatements of information No restatements made in 2021 2-5 External assurance 46, 52 2-6 Activities, value chain and other business relationships 9 2-7 Employees 2.7 e) Multiconsult Polska has changed the denition of full time employees, resulting in an increase in no. of employees. 62 2-8 Workers who are not employees 63 2-9 Governance structure and composition 41 2-10 Nomination and selection of the highest governance body 41 2-11 Chair of the highest governance body 41 2-12 Role of the highest governance body in overseeing the management of impacts 42, 73, 74 2-13 Delegation of responsibility for managing impacts 42 2-14 Role of the highest governance body in sustainability reporting 52 2-15 Conflicts of interest b) Presently no disclosure 74-76 2-16 Communication of critical concerns 75-76 2-17 Collective knowledge of the highest gover- nance body 73 2-18 Evaluation of the performance of the hig- hest governance body 41, 42 2-19 Remuneration policies 44,45 2-20 Process to determine remuneration 44, 45 2-21 Annual total compensation ratio Ratio is based on salary, not total compen- sation 72 2-22 Statement on sustainable development strategy 52-53 GRI Standard Gri Ref. no GRI Disclosure Comment Page reference 2-23 Policy commitments 73-76 2-24 Embedding policy commitments 74-76 2-25 Processes to remediate negative impacts No established grievance mechanisms 75, 76 2-26 Mechanisms for seeking advice and raising concerns 75,76 2-27 Compliance with laws and regulations 76 2-28 Membership associations Reported on Multiconsult Norge AS, LINK Arkitektur AB, LINK Arkitektur AS and LINK Arkitektur A/S 77 2-29 Approach to stakeholder engagement 41-42, 45, 52, 60, 75, 76 2-30 Collective bargaining agreements 70, 73 GRI 3 Material Topics 3-1 Process to determine material topics 52 3-2 List of material topics 52 3-3 Management of material topics Circular economy, Research and development, Human rights, Social sustainability and local communities and Influence on business part- ners is not reported on for 2021 52, 73, 77, 78 Emissions 305-1 Direct (Scope 1) GHG emissions 57-59, 136-139 305-2 Energy indirect (Scope 2) GHG emissions 57-59, 36-139 305-3 Other indirect (Scope 3) GHG emissions 57-59, 36-139 305-4 GHG emissions intensity Carbon intensity gures for 2019 and 2020 are based on emission data from Multicon- sult Norge AS only. For 2021 data the main explanation for the increase is a change of methodology for scope 2 emmissions to a market-based method. 57-59, 136-139 305-5 Reduction of GHG emissions 57-59, 136-139 305-6 Emissions of ozone-depleting substances (ODS) 57-59, 136-139 305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other signicant air emissions 57-59, 136-139 GRI CONTENT 2021 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Appendix – Sustainability & GRI index 144 145MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 GRI Standard Gri Ref. no GRI Disclosure Comment Page reference Employment 401-1 New employee hires and employee turno- ver 64 401-2 Benets provided to full-time employees that are not provided to temporary or part-time employees Only reported on Multiconsult Norge AS 73 401-3 Parental leave Only reported on Multiconsult Norge AS 73 Occupational Health and Safety 2018 403-1 Occupational health and safety manage- ment system 68, 69 403-2 Hazard identication, risk assessment, and incident investigation 68, 69 403-3 Occupational health services 68, 69 403-4 Worker participation, consultation, and communication on occupational health and safety 68, 69 403-5 Worker training on occupational health and safety 68, 69 403-6 Promotion of worker health 68, 69 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships 68, 69 403-8 Workers covered by an occupational health and safety management system No spesic data recorded for 2021 403-9 Work-related injuries 69 403-10 Work-related ill health 69 Diversity and Equal Opportunity 405-1 Diversity of governance bodies and em- ployees Not reported on age group 41, 66, 70, 71 405-2 Ratio of basic salary and remuneration of women to men 72 Public Policy 415-1 Political contributions 78 PROJECT: THE SCHOOL QUARTER, SKI PHOTO: LINK ARKITEKTUR Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Appendix – Sustainability & GRI index 146 147MULTICONSULT ANNUAL REPORT 2021 165 165 166 147 146 PROJECT: NEW DRAMMEN HOSPTIAL, DRAMMEN ILLUSTRATION: LINK ARKITEKTUR Statement of prot or loss and comprehensive income Statement of nancial position – assets Statement of nancial position – equity and liabilities Statement of cash flows Statement of changes in equity Notes to the nancial statements 148 149 150 151 152 153 ANNUAL ACCOUNTS PARENT COMPANY 153 153 154 154 155 156 157 157 159 160 161 162 163 164 164 164 Note 1 - General information Note 2 - Basis for preparation Note 3 - Financial risk management Note 4 - Operating revenues for the parent company Note 5 - Employee benet expenses, number of employees, remuneration, loans to employees, pensions etc. Note 6 - Other operating expenses Note 7 - Financial items Note 8 - Income taxes Note 9 - Receivables and prepaid expenses Note 10 - Intangible assets Note 11 - Property, plant and equipment Note 12 - Cash and cash equivalents and guarantees Note 13 - Subsidiaries, associated companies, joint ventures Note 14 - Leasing and other payment obligations Note 15 - Other current liabilities Note 16 - Non-current nancial assets Note 17 - Related parties Note 18 - Events after the reporting period Declaration in accordance with § 5-5 of the securities trading act Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 148 149MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 STATEMENT OF FINANCIAL POSITION MULTICONSULT ASA – ASSETS Amounts in NOK thousand Note 31.12.2021 31.12.2020 ASSETS Non-current assets Deferred tax assets Intangible assets Property, plant and equipment 8 10 11 248 14 069 - 289 17 456 - Total non-current non-nancial assets 14 317 17 745 Investments in subsidiaries Investments in associates and joint ventures Other non-current nancial assets 13 13 16 1 171 525 2 082 49 708 733 141 2 082 25 640 Total non-current nancial assets 1 223 315 760 863 Total non-current assets 1 237 632 778 608 Current assets Trade receivables Other current receivables 9 9 55 998 116 856 8 673 83 082 Total receivables 172 854 91 755 Cash and cash equivalents 12 62 209 261 628 Total current assets 235 063 353 383 TOTAL ASSETS 1 472 695 1 131 990 STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME MULTICONSULT ASA Amounts in NOK thousand Note 2021 2020 Operating revenues 4 75 389 58 003 Expenses for sub-contractors and disbursements 777 943 Net operating revenues 74 612 57 060 Employee benet expenses 5 53 704 55 787 Other operating expenses 6 40 539 22 689 Operating expenses excluding depreciation and amortisation 94 243 78 476 Operating prot before depreciation and amortisation (EBITDA) (19 631) (21 416) Depreciation and amortisation 10, 11 3 387 3 841 Operating prot (EBIT) (23 018) (25 257) Financial income 7 9 597 7 613 Group contribution 7 100 000 32 002 Financial expenses 7 13 227 15 209 Net nancial items 96 370 24 406 Prot before income taxes 73 351 (851) Income tax expenses 8 18 212 (447) Prot (loss) and comprehensive income for the year 55 140 (404) Allocation of prot (loss) for the year Transferred to (from) other equity (109 444) (216 167) Dividend 164 583 215 763 Total allocated 55 140 (404) Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 150 151MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 STATEMENT OF CASH FLOWS MULTICONSULT ASA Amounts in NOK thousand + are cash increasing and - are cash reducing eects Note 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Prot before income taxes 73 351 (851) Interest expense interest-bearing liabilities 927 5 851 Depreciation and amortisation 10, 11 3 387 3 841 Group contribution (100 000) (32 002) Income taxes paid during the period (1 470) - Other non-cash prot and loss items (1 336) (50) Sub-total cash flow from operating activities (25 140) (23 211) Changes in trade receivables (47 325) 10 264 Changes in other current receivables (33 774) 14 741 Changes in trade payables 2 794 (40 837) Changes in other current liabilities and public duties payable 221 594 504 669 Group contribution receivable 100 000 32 002 Other adjustments - (19) Sub-total change in working capital 243 289 520 820 Net cash flows from operating activities 218 149 497 608 CASH FLOWS FROM INVESTING ACTIVITIES Net payments on acquisition and sale of property, plant and equipment and intangible assets 10, 11 - 300 Change in loans to subsidiaries and associates (23 070) (47 404) Other non-current nancial investments (999) - Net cash eect of business combinations (354 019) - Net cash flows from investing activities (378 087) (47 104) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds on interest-bearing liabilities 180 000 172 000 Instalments on interest-bearing liabilities - (350 400) Paid interest on interest-bearing liability (927) (5 851) Dividends paid (215 437) (53 626) Cost of share issuance (140) - Purchase treasury shares (64 874) (58 774) Sale treasury shares 61 897 49 889 Net cash flow from nancing activities (39 481) (246 762) Net change in cash and cash equivalents (199 419) 203 743 Cash and cash equivalents 1 January 12 261 628 57 885 Cash and cash equivalents 31 December 12 62 209 261 628 STATEMENT OF FINANCIAL POSITION MULTICONSULT ASA – EQUITY AND LIABILITIES Amounts in NOK thousand Note 31.12.2021 31.12.2020 EQUITY AND LIABILITIES Equity Total paid in capital Other equity 170 343 10 925 85 988 124 183 Total equity 181 268 210 171 Non-current liabilities Deferred tax Non-current interest-bearing liabilities 8 3 - 180 000 - - Total non-current liabilities 180 000 - Current liabilities Trade payables Current tax liabilities Public duties payable Dividends payable Other current liabilities 8 15 6 170 16 401 3 475 164 583 920 798 3 376 - 3 265 215 763 699 415 Total current liabilities 1 111 427 921 819 Total liabilities 1 219 427 921 819 TOTAL EQUITY AND LIABILITIES 1 472 695 1 131 990 The board and CEO of Multiconsult ASA – Oslo, 16 March 2022 Bård Mikkelsen Chair of the board Grethe Bergly CEO Hanne Rønneberg Director Rikard Appelgren Director Torben Wedervang Director Gunnar Vatnar Director Sverre Hurum Director Tove Raanes Director Karine Gjersø Director Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 152 153MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 NOTES TO THE FINANCIAL STATEMENTS MULTICONSULT ASA Multiconsult ASA (“parent company” or “company”) is the parent in the Multiconsult group (“Multiconsult” or “the group”). The compa- ny is a parent company and contains parts of the group manage- ment and corporate functions. Revenues primarily comprise sales of group services to Multiconsult subsidiaries, primarily on a cost-plus basis. NOTE 1 GENERAL INFORMATION These nancial statements were approved by the board of directors on 16 March 2022 for adoption by the Annual General Meeting on 7 April 2022. The group prepares the consolidated nancial statements in accor- dance with International Financial Reporting Standards as adopted by the EU (IFRS) and the Norwegian Accounting Act. References to "IFRS" in these nancial statements mean IFRS as adopted by the EU. The company prepares the company nancial statements in accordance with the Norwegian Accounting Act and regulation for simplied application of International Financial Reporting Stan- dards (simplied IFRS). The company’s nancial statements have been prepared on a his- torical cost basis, except for derivatives that are measured at fair value. The nancial statements are presented in Norwegian kroner (NOK), which is also the functional currency of the company. Amo- unts are rounded to the nearest thousand, unless stated otherwise. As a result of such rounding dierences, amounts and percentages may not add up to the total. Principles for recognition and measurement are in accordance with IFRS and the policies are applied as described in the consolidated nancial statements, except as specied in the regulation for sim- plied IFRS. Furthermore, mergers of subsidiaries are based on the carrying values of the group, and the dierence between the carry- ing value of shares before the merger and the net assets related to the merged subsidiary is recognised in equity. This is because this is a common control transaction. Demergers are based on the car- rying values of the company. Comparative gures are not restated. Disclosure requirements are in accordance with the requirements in the Norwegian Accounting Act with additions as specied in the regulation for simplied IFRS. Presentation of the primary nanci- al statements is similar to the group. Options in the regulation for simplied IFRS that have not been applied are not relevant to the company. The option in the regulation for simplied IFRS which the company has utilised in recognition and measurement and which dier from the consolidated nancial statements are: NOTE 2 BASIS FOR PREPARATION Dividends and group contribution Dividends and group contributions are recognised in accordance with the Accounting Act, which entails that dividends and group contributions are recognised in the reporting period to which they relate. Investment in subsidiaries, associated companies and joint ventures Investment in subsidiaries, associated companies and joint ventu- res are recognised using the cost method. In accordance with the cost method, the investment is recognised at historical cost less any impairment. Dividends and group contributions are recognised as nancial income. Group contributions to subsidiaries are recognised as part of cost of investment. Standards eective from 1 January 2021 Several limited scope amendments and interpretations eective as from 1 January 2021 had no material impact on the group. This inclu- de but is not limited to amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 following the Interest Rate Benchmark Reform phase 2. The group had no material impact following the issuing and imple- mentation of Covid-19-Related Rent Concessions (Amendment to IFRS 16) beyond 30 June. Standards not yet eective IFRS 17 Insurance Contracts is a comprehensive new accounting standard for insurance contracts covering recognition and mea- surement, presentation and disclosure. The standard is eective for reporting periods beginning on or after 1 January 2023. This standard is not applicable to Multiconsult ASA. A number of limited scope amendments and interpretations have been issued. These amendments and interpretations have been assessed to have no material impact on the company. STATEMENT OF CHANGES IN EQUITY MULTICONSULT ASA Amounts in NOK thousand Share capital Treasury shares Share premium Total paid in capital Retained earnings Remeasure- ment pensions Total equity 31 December 2019 13 485 (1) 77 759 91 243 599 542 (201 985) 488 800 Treasury shares - (5 255) - (5 255) - - (5 255) Employee share purchase pro- gramme (net of tax) - - - - (3 582) - (3 582) Dividend - - - - (53 626) - (53 626) Dividend declared - - - - (215 763) - (215 763) Total comprehensive income for the period - - - - (404) - (404) 31 December 2020 13 485 (5 256) 77 759 85 988 326 168 (201 985) 210 171 Share issue 230 - 83 995 84 226 - - 84 226 Treasury shares - 129 - 129 - - 129 Employee share purchase programme (net of tax) - - - - (4 141) - (4 141) Dividend declared - - - - (164 257) - (164 257) Total comprehensive income for the period - - - - 55 140 - 55 140 31 December 2021 13 715 (5 126) 161 754 170 343 212 909 (201 985) 181 268 See note 9 to the consolidated nancial statements for information about treasury shares and employee share purchase programme. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 154 155MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 In 2021, employees of the company purchased 10 610 shares in the employee share purchase programme (17 784 shares in 2020). Key management personnel signed up for 22 823 shares in the variable performance-based bonus scheme in 2021. The variable performan- ce-based bonus scheme was not held in 2020. See note 9 to the consolidated nancial statements for further information about the bonus scheme for key management personnel. The discount is partially recognised as an expense and partially recognised to equity. See accounting policies for the group for further description. NOTE 5 EMPLOYEE BENEFIT EXPENSES, NUMBER OF EMPLOYEES, REMUNERATION, LOANS TO EMPLOYEES, PENSIONS ETC. Amounts in NOK thousand 2021 2020 Salaries, vacation pay, bonus etc. 46 323 47 465 Social security tax 5 216 5 327 Pension expenses 3 071 2 949 Other employee benet expenses 430 495 Reduction to employee benet expenses related to share purchase programme 2) (1 335) (448) Total employee benet expenses 53 704 55 787 Number of full time employees during the year 1) 23 27 Number of employees on 31 December 23 23 1) Number of full-time employees is calculated as the total number of working hours (including overtime and paid sick leave) divided on normal working hours per full time employee for the period. 2) See employee share purchase programme below. Refer to note 9 in the consolidated nancial statements for information on remuneration and share ownership related to executive mana- gement and the board of directors, and the share purchase programme. Multiconsult ASA has established pension plans that comply with the requirements in the Act on Mandatory company pensions. At end of 2021, there was 22 active employees in the contribution plan (24 at the end of 2020). Annual contributions to the plan are 5.55% for contribution basis between 1G and 7.1G, and 18% of the contribution basis between 7.1G and 12G. G is a base amount annually approved by the Norwegian parliament and was NOK 106 399 per 31 December 2021. Amounts in NOK thousand 2021 2020 Employee benet expenses (1 036) (50) Recognised directly to equity (before tax) 1 335 448 Total discount employees of Multiconsult ASA 299 398 EMPLOYEE BENEFIT EXPENSES EMPLOYEE SHARE PURCHASE PROGRAMME Credit risk is primarily related to loans and receivables to subsidiaries and bank deposits. The carrying amount of the company's nancial instruments is a reasonable approximation to fair value. The compa- ny's credit risk is considered limited. Operational currency risk is li- mited, but the company has some direct and indirect investments in shares in foreign subsidiaries and associates, for which the fair value will be currency exposed. Change in fair value of these shares is not recognised in the nancial statements unless the shares be- come impaired. Liquidity risk is primarily related to a bank loan and payables to subsidiaries and dividends. Interest rate risk is primarily related to the bank loan, bank deposits and interest rate swaps. The company mainly holds receivables and nancial liabilities mea- sured at amortised cost. The company also holds interest rate deri- vatives that are nancial liabilities at fair value through prot or loss. The derivatives are disclosed in note 3 to the consolidated nancial statements. See note 3 to the consolidated nancial statements for additional information on nancial risks. NOTE 3 FINANCIAL RISK MANAGEMENT NOTE 4 OPERATING REVENUES FOR THE PARENT COMPANY Amounts in NOK thousand 2021 2020 GEOGRAPHICAL PER CUSTOMER LOCATION Norway 71 503 52 879 Outside Norway 3 886 5 123 Total operating revenues 75 389 58 003 Revenues comprise primarily sales of group services to Multiconsult subsidiaries on a cost-plus basis. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 156 157MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 NOTE 7 FINANCIAL ITEMS Amounts in NOK thousand 2021 2020 Interest income from group companies 973 935 Other interest income 55 327 Other nancial income 4 217 3 980 Gains on derivatives 1 204 775 Dividends 3 147 1 595 Financial income 9 597 7 613 Group contribution from subsidiaries 1) 100 000 32 002 Interest expense to group companies 160 281 Other interest expenses 3 340 4 449 Loss on derivatives - 2 870 Other nancial expenses 9 727 7 609 Financial expenses 13 227 15 209 Net nancial items 96 370 24 406 1) In 2021 Multiconsult ASA received group contribution of NOK 100 million from Multiconsult Norge AS (NOK 32 million in 2020). NOTE 8 INCOME TAXES Amounts in NOK thousand 2021 2020 Income taxes payable 16 701 99 Regulation of previous years' income taxes 1 470 - Changes in deferred taxes 41 (546) Income tax expenses 18 212 (447) THE INCOME TAX EXPENSES IN THE STATEMENT OF INCOME FOR THE YEAR ARE AS FOLLOWS: NOTE 6 OTHER OPERATING EXPENSES Amounts in NOK thousand 2021 2020 Rental and other expenses for premises 1 476 176 Consultants 15 481 8 084 Technical equipment 328 65 Oce expenses, IT 13 508 6 358 Travel and per diem allowance 509 285 Marketing 2 008 1 274 Losses on receivables - - Gain on sale of xed assets - (30) Other 7 228 6 477 Total operating expenses 40 539 22 689 Amounts in NOK thousand 2021 2020 Statutory audit services 829 1 006 Tax advisory services - - Other assurance services 45 5 Other non-audit services - - Total 874 1 011 The amounts above are excluding VAT. AUDITOR Amounts in NOK thousand 2021 2020 Reduction to employee benet expenses (1 335) (448) Recognised directly to equity (before tax) 1) 1 335 448 1) The amount recognised directly to equity as a discount may deviate from the amount recognised in the statement of equity before tax, if the payments to acquire own shares deviates from the market price for the shares used as basis for calculating the discount. Employees have been granted loans (maximum 3/5 G, NOK 63 thousand per employee) for the remaining payment for the shares, with outstanding balance on 31 December 2021 of NOK 1 124 thousand (NOK 957 thousand on 31 December 2020). Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 158 159MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 NOTE 9 RECEIVABLES AND PREPAID EXPENSES Amounts in NOK thousand 31.12.2021 31.12.2020 Trade receivables 55 998 8 673 Allowance for losses - - Total trade receivable 55 998 8 673 Prepaid expenses 6 191 1 395 Other 1 147 924 Other current receivables group companies 9 518 48 761 Group contribution 100 000 32 002 Other current receivables 116 856 83 082 Of other current receivables from group companies NOK 9.5 million (NOK 6.9 million in 2020) is subsidiaries’ draw in the group cash pool, for which Multiconsult ASA is the owner of the top account. Amounts in NOK thousand 2021 2020 Prot before income taxes 73 351 (851) Expected income tax expenses based on nominal tax rate in Norway (22%/22%) 16 137 (187) Tax eect of the following items: Non-deductible expenses 1 296 91 Dividend (692) (351) Regulation of previous years' income taxes 1 470 - Income tax expenses 18 212 (447) Eective tax rate 24.8 % 52.6 % RECONCILIATION FROM NOMINAL TO ACTUAL TAX RATE: Amounts in NOK thousand 31.12.2021 31.12.2020 Non-current assets (9) (104) Current assets 85 350 Liabilities and provisions 172 44 Deferred tax assets/(liabilities) in the balance sheet 248 289 SPECIFICATION OF THE TAX EFFECT OF TEMPORARY DIFFERENCES: Amounts in NOK thousand 31.12.2021 31.12.2020 Expensed income taxes payable 16 701 99 Income tax on employee share purchase programme recognised in equity (300) (99) Income taxes payable in the balance sheet 16 401 - Amounts in NOK thousand 2021 2020 Deferred tax assets 1 January 289 (257) Change in deferred taxes recognised in the income statement (41) 546 Deferred tax assets in the balance sheet (net) on 31 December 248 289 RECONCILIATION OF INCOME TAXES PAYABLE IN THE BALANCE SHEET: RECONCILIATION OF DEFERRED TAX ASSETS IN THE BALANCE SHEET: Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 160 161MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 NOTE 11 PROPERTY, PLANT AND EQUIPMENT Amounts in NOK thousand Property, plant and equipment Acquisition cost 1 January 2020 1 334 Adjustment opening balance (396) Additions - Disposal 938 Acquisition cost 31 December 2020 - Additions - Disposal - Acquisition cost 31 December 2021 - Acc. depreciation and impairment 1 January 2020 881 Adjustment opening balance (396) Depreciation for the year 94 Disposal 579 Acc. depreciation and impairment 31 December 2020 - Depreciation for the year - Disposal - Acc. depreciation and impairment 31 December 2021 - Carrying amount 1 January 2020 454 Additions - Depreciation for the year 94 Disposal 360 Carrying amount 31 December 2020 - Additions - Depreciation for the year - Disposal - Carrying amount 31 December 2021 - Estimated useful life is 3 -8 years. NOTE 10 INTANGIBLE ASSETS Carrying amount of software on 31 December 2021 is primarily related to the ERP system and consolidation system that is amortised straight line over 3 - 10 years. Amounts in NOK thousand Software Acquisition cost 1 January 2020 27 211 Adjustment opening balance 49 Disposal - Additions 90 Acquisition cost 31 December 2020 27 350 Disposal - Additions - Acquisition cost 31 December 2021 27 350 Accumulated amortisation and impairment 1 January 2020 6 087 Adjustment opening balance 49 Disposal - Amortisation for the year 3 759 Accumulated amortisation and impairment 31 December 2020 9 894 Disposal - Amortisation for the year 3 387 Accumulated amortisation and impairment 31 December 2021 13 281 Carrying amount 1 January 2020 21 125 Additions 90 Disposal - Amortisation for the year 3 759 Carrying amount 31 December 2020 17 456 Additions - Disposal - Amortisation for the year 3 387 Carrying amount 31 December 2021 14 069 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 162 163MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Acquisition date Business oce Voting share Ownership share LINK Arkitektur AB 2018 Stockholm, Sweden 100 % 100 % LINK Danmark ApS 2013 Copenhagen, Denmark 100 % 100 % LINK Arkitektur A/S 2019 Aarhus, Denmark 100 % 100 % 2) Subsidiaries of LINK Arkitektur AS There are no signicant restrictions on the company's ability to gain access to or use the group's assets and settle the group's obligations, see however note 16 to the group nancial statements regarding restricted cash. SUBSIDIARIES OWNED BY SUBSIDIARIES 2) NOTE 13 SUBSIDIARIES, ASSOCIATED COMPANIES, JOINT VENTURES 31 December 2020 Amounts in NOK thousand (except percentages) Acqui- sition date Business oce Voting share Owner- ship share Voting share Owner- ship share 2021 2020 Nordland Teknikk AS 2021 Mo, Norway 100 % 100 % N/A N/A 7 433 N/A Erichsen & Horgen AS 2021 Oslo, Norway 100 % 100 % N/A N/A 430 951 N/A Multiconsult Norge AS 2017 Oslo, Norway 100 % 100 % 100 % 100 % 499 235 467 035 Iterio AB 2017 Stockholm, Sweden 100 % 100 % 100 % 100 % 52 606 52 606 Johs Holt AS 1) 2017 Oslo, Norway N/A N/A 100 % 100 % N/A 32 200 LINK Arkitektur AS 2015 Oslo, Norway 100 % 100 % 100 % 100 % 147 645 147 645 Multiconsult UK Ltd 2012 London, UK 100 % 100 % 100 % 100 % 3 937 3 937 Multiconsult Asia Ote. Ltd 2013 Singapore 100 % 100 % 100 % 100 % 933 933 Multiconsult Polska Z.O.O. 2014 Warsaw, Poland 100 % 100 % 100 % 100 % 28 641 28 641 LLC Multiconsult Rus 2009 Russia 100 % 100 % 100 % 100 % 145 145 Total subsidiaries 1 171 525 733 141 1) Johs Holt AS merged with Multiconsult Norge AS, with increase in the carrying value of the shares in Multiconsult Norge AS equal to the carrying values of the shares in Johs Holt AS on 1 January 2021. SUBSIDIARIES Carrying amount 31 December31 December 2021 31 December 2021 and 2020 NOTE 12 CASH AND CASH EQUIVALENTS AND GUARANTEES Amounts in NOK thousand 31.12.2021 31.12.2020 Total cash and cash equivalents 62 209 261 628 Amounts in NOK thousand 31.12.2021 31.12.2020 Bank guarantee - guarantees towards customers 600 716 Bank guarantee - guarantees for other obligations 20 350 20 350 Guarantee - employees tax deductions 10 000 10 000 Parent company guarantees - for associated and joint ventures - 3 600 Parent company guarantees - for subsidiaries 17 351 19 795 Total guarantees 48 301 54 461 The company has a guarantee for employees’ tax deductions amounting to NOK 10.0 million on 31 December 2021 (NOK 10.0 million on 31 December 2020). Multiconsult ASA has provided a surety of NOK 400 million for Multiconsult ASA’s liabilities towards the lender and provided sureties in the amount of NOK 200 million for Multiconsult Norge AS’ and NOK 5 million for LINK Arkitektur AS’ liabilities towards the lender. Multi- consult ASA have pledged trade receivables, inventory and property, plant and equipment. The carrying values of the pledged assets in Multiconsult ASA on 31 December 2021 is NOK 56.0 million for trade receivables and NOK 0 for inventory and property, plant and equip- ment. Multiconsult Norge AS has provided a surety of NOK 800 million for Multiconsult ASA’s liabilities towards the lender. GUARANTEE OBLIGATIONS NOT RECOGNISED IN THE BALANCE SHEET Total cash and cash equivalents comprise Multiconsult group’s net deposit in the group cash pool. When subsidiaries in the group draw on/ deposit in the group cash pool, this is presented as a receivable/liability in Multiconsult ASA’s balance sheet. On 31 December 2021 subsidi- aries had a deposit in the group cash pool of NOK 926.1 million, and a draw of NOK 39.5 million. Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 164 165MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 NOTE 17 RELATED PARTIES The Company's related parties are the same as mentioned in note 23 to the consolidated nancial statements, in addition to the company's subsidiaries. Refer to note 9 to the consolidated nancial statements for information on transactions with and remuneration to key mana- gement personnel. TRANSACTIONS AND BALANCES WITH SUBSIDIARIES, JOINT VENTURES AND ASSOCIATED COMPANIES Receivables Liabilities Purchases Sales Guarantees Amounts in NOK thousand 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Subsidiaries 211 663 112 729 908 314 683 654 5 714 8 137 75 389 58 003 17 351 19 795 Joint ventures and associ- ated companies 2 562 2 347 - - - - - - - 3 600 On 31 December 2021 NOK 9.5 million (2020 NOK 6.9 million) of receivables and NOK 896.1 million (2020 NOK 681.7 million) of liabilities to subsidiaries is related to the subsidiaries draw and deposit on the group cash pool. On 31 December 2021 NOK 0 (2020 NOK 0 million) of liabilities to subsidiaries is a non-current liability. In addition to the amounts in the table above, Multiconsult ASA received dividends of NOK 3.0 million (NOK 1.6 million in 2020) from Multi- consult Polska and NOK 0.1 million from Multiconsult RUS in 2021, and had a net interest income from subsidiaries of NOK 0.8 million (NOK 0.7 million in 2020). Interest income from joint ventures and associated companies was NOK 25 thousand in 2021 (NOK 214 thousand in 2020). NOTE 18 EVENTS AFTER THE REPORTING PERIOD After the reporting period ended on 31 December 2021 and up to the date these nancial statements have been approved for issue, no events have been identied that require disclosure. ASSOCIATED COMPANIES AND JOINT VENTURES Carrying amount 31 December Amounts in NOK thousand (except percentages) Acquisition date Business oce Voting share Ownership share 2021 2020 Norplan Tanzania Ltd 2013 Tanzania 49.0 % 49.0 % 2 050 2 050 Consorcio SAM SpA 2014 Chile 27.5 % 27.5 % 32 32 Total associated companies and joint ventures 2 082 2 082 31 December 2021 and 2020 NOTE 14 LEASING AND OTHER PAYMENT OBLIGATIONS Liabilities for operating leases of assets are not recognised in the balance sheet. On 31 December 2021 and 2020, Multiconsult ASA is not party to any lease agreements. The company is charged by Multiconsult Norge AS for use of premises, but there is no explicit agreement related to lease, and the company evaluates that it has no xed lease or other signicant payment obligations. Of other current liabilities to group companies NOK 896.1 million (NOK 681.7 million in 2020) is subsidiaries’ deposit in the group cash pool, for which Multiconsult ASA is the owner of the top account. NOTE 15 OTHER CURRENT LIABILITIES NOTE 16 NON-CURRENT FINANCIAL ASSETS Amounts in NOK thousand 31.12.2021 31.12.2020 Salaries payable, vacation pay, bonus etc. 16 833 15 923 Derivatives 385 1 589 Other accrued expenses 249 190 Current liabilities group companies 903 331 681 713 Total other current liabilities 920 798 699 415 Amounts in NOK thousand 31.12.2021 31.12.2020 Loans to subsidiaries 46 147 23 293 Other non-current receivables 3 560 2 347 Total other non-current nancial assets 49 708 25 640 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 166 167MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 PROJECT: FLOOD PROTECTION , LILLEHAMMER PHOTO: MULTICONSULT DECLARATION IN ACCORDANCE WITH § 5-5 OF THE SECURITIES TRADING ACT We conrm that the nancial statements for 2021 have, to the best of our knowledge, been prepared in accordance with applicable acco- unting standards and give a true and fair view of the assets, liabilities, nancial position and prot or loss of the company and the group as a whole. The board of directors’ report includes a fair review of the development and performance of the business and the position of the company and the group as a whole, together with a description of the principal risks and uncertainties that they face. The board and CEO of Multiconsult ASA – Oslo, 16 March 2022 Bård Mikkelsen Chair of the board Grethe Bergly CEO Hanne Rønneberg Director Rikard Appelgren Director Torben Wedervang Director Gunnar Vatnar Director Sverre Hurum Director Tove Raanes Director Karine Gjersø Director Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 168 169MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 AUDITORS’ REPORT Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 170 171MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 172 173MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 PROJECT: SLUPPENVEGEN 23, TRONDHEIM ILLUSTRATION: HUS ARKITEKTER Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Company accounts 174 175MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 MANAGEMENT GRETHE BERGLY CHIEF EXECUTIVE OFFICER KRISTIN OLSSON AUGESTAD EVP REGION OSLO KIRSTEN ANKER SØRENSEN EVP ARCHITECTURE HILDE GILLEBO EVP ENERGY MORTEN ALSTAD EVP PROJECTS GEIR JUTERUD EVP PROJECTS LEIF OLAV BOGEN EVP REGIONS NORWAY HANS-JØRGEN WIBSTAD CHIEF FINANCIAL OFFICER THOR ØRJAN HOLT EVP SALES KARI NICOLAISEN EVP HR AND COMMUNICATIONS JOHAN ARNTZEN CHIEF OPERATING OFFICER BOARD BÅRD MIKKELSEN CHAIR OF THE BOARD GUNNAR VATNAR DIRECTOR TOVE RAANES DIRECTOR SVERRE HURUM DIRECTOR HANNE RØNNEBERG DIRECTOR TORBEN WEDERVANG DIRECTOR RIKARD APPELGREN DIRECTOR KARINE GJERSØ DIRECTOR Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Board and management 177MULTICONSULT ANNUAL REPORT 2021176 MULTICONSULT ANNUAL REPORT 2021 PROJECT: NEW VÄXJÖ HOSPITAL, VÄXJÖ - SWEDEN ILLUSTRATION: LINK ARKITEKTUR Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance 178 179MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 179MULTICONSULT ANNUAL REPORT 2021178 MULTICONSULT ANNUAL REPORT 2021 PROJECT: THE NEW LIFE SCIENCE BUILDING (UNIVERSITY OF OSLO) ILLUSTRATION: RATIO / KVANT ARKITEKTER / STATSBYGG Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance 180 181MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 181MULTICONSULT ANNUAL REPORT 2021180 MULTICONSULT ANNUAL REPORT 2021 PROJECT: NEW NATIONAL MUSEUM, OSLO ILLUSTRATION: HANS FREDRIK ASBJØRNSEN / STATSBYGG Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance 182 183MULTICONSULT ANNUAL REPORT 2021 MULTICONSULT ANNUAL REPORT 2021 MO I RANA SANDNESSJØEN SARPSBORG INTERNATIONAL OFFICES SWEDEN DENMARK UNITED KINGDOM POLAND SINGAPORE TANZANIA KENYA MOCAMBIQUE ZAMBIA BODØ NARVIK SORTLAND TROMSØ ALTA VADSØ KIRKENES STEINKJER TRONDHEIM ÅLESUND BERGEN STAVANGER EGERSUND KRISTIANSAND GRIMSTAD FREDRIKSTAD MOSS LILLEHAMMER SKI OSLO (HEAD OFFICE) VØYENENGA DRAMMEN SKIEN TØNSBERG VOSS STORD LONGYEARBYEN 183MULTICONSULT ANNUAL REPORT 2021 PROJECT: FLOATING SOLAR PHOTO: MULTICONSULT PROJECT: FLOD PROTECTION, COUNTY INNLANDET PHOTO: MULTICONSULT PROJECT: NEW FLAKSTADPRIMARY AND LOWER SECONDARY SCHOOL, LOFOTEN ILLUSTRATION: LINK ARKITIKEKTUR PROJECT: VIKING AQUA ILLUSTRATION: LINK ARKITEKTUR Highlights and intro Letter from CEO Directors’ report Board and management Appendix – Sustainability & GRI index Sustainability and corporate responsibility Company accounts Group accounts Annual statement on corporate governance Visiting address: Nedre Skøyen vei 2 0276 Oslo Postal address: P O Box 265 Skøyen NO-0213 Oslo Investor relations: E: [email protected] Multiconsult ASA [email protected] www.multiconsultgroup.com T: (+47) 21 58 50 00 E: [email protected] Org no 910 253 158 Design: www.bly.as Project front cover: Nortern Lights Administration Building Photo: LINK arkitektur / Equinor M I L J Ø M E R K E T 2 0 4 1 M e r k u r G r a f i s k A S 0 6 7 2 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