AF Gruppen

Earnings Release • Aug 25, 2017

AF Gruppen reports record-high order backlog and good earnings

AF Gruppen reports record-high order backlog and good earnings

AF Gruppen continues to grow profitably with a record-high order

intake and profit margin of 7.5% for the quarter. Sickness absence

has at the same time never been lower.

AF Gruppen's revenues were NOK 3 347 million (3 170 million) in the

2nd quarter and NOK 6 009 million (5 877 million) for the 1st half

of the year. Earnings before tax were NOK 250 million (249 million)

in the 2nd quarter and NOK 393 million (435 million) for the 1st

half of the year. Profit margin was 7.5% (7.8%) in the 2nd quarter

and 6.5% (7.4%) for the 1st half of the year.

AF imposes the same strict safety requirements on its partners and

suppliers as on its own organisation. Figures from the

subcontractors are therefore included in the injury statistics. The

LTI rate for the 2nd quarter was 1.4 (0.7). The LTI rate for the 1st

half of 2017 was 1.2 (1.3). Sickness absence was 2.8% (3.3%) in the

2nd quarter, and 3.2% (3.8%) for the 1st half of the year.

A strong order intake during the quarter gave an order backlog of

NOK 18 928 million (11 626 million) as at 30 June 2017. Net

operating cash flow was NOK 203 million (190 million) in the 2nd

quarter and NOK 619 million (342 million) for the 1st half of the

year.

AF Gruppen has a strong financial position, and the group had net

interest-bearing receivables of NOK 698 million (300 million) as at

30 June 2017.

"AF Gruppen reported a solid quarterly result. The strong order

intake and the Group's financial standing provides a good foundation

for realisation of its growth strategy towards 2020. Our record-high

order backlog shows that our expertise and services are in demand by

our customers.

The ability to be curious and look for opportunities is part of the

AF Culture. It is our entrepreneurial spirit and execution

capability that gives AF Gruppen its competitive advantage and makes

us an attractive employer. During the last half of the year we have

welcomed many new members to our team, and AF now has approximately

3 600 employees. The ability to communicate our core values will be

decisive for maintaining a strong and clear culture and achieving

profitable growth at the same time.

A key element of the AF culture is our work with health, safety and

the environment. This forms the basis of all our operations.

Therefore it is inspiring to see that we both deliver solid

financial results and preserve the health of our employees. The

focused work on good, preventive safety and health shall be just as

clear in our future creation of value", says CEO Morten Grongstad of

AF Gruppen.

For further information, contact:

Morten Grongstad, CEO, mobile +47 991 53 905

Sverre Hærem, CFO, mobile +47 952 45 167

Wibecke Brusdal, Director Corporate Communications, mobile +47 930

93 150

www.afgruppen.com