AF Gruppen — Earnings Release 2014

Aug 22, 2014

Good performance from AF Gruppen

Good performance from AF Gruppen

AF Gruppen (AFG) is performing well and has

strengthened profit margins. AF Gruppen reported

revenues of NOK 2,567 million (NOK 2,709 million) and

earnings before tax of NOK 153 million (NOK 129

million) for Q2. The profit margin for the quarter

was 6.0% (4.8%).

Turnover for the first six months was NOK 4,862

million (NOK 5,084 million) and earnings before tax

were NOK 245 million (NOK 220 million). The profit

margin for the first six months was 5.0% (4.3%). AF

Gruppen's total order backlog was NOK 11,427 million

(10,281 million). Return on average capital employed

was 41.6% (28.1%). Cash flow from operating

activities was NOK 24 million (NOK 388 million) in Q2

and NOK -106 million (NOK 267 million) in the first

half of the year.

AF assigns high priority to HSE, and the LTI rate for

Q2 was 1.2 (0.8). The LTI rate for the first six

months was 1.1 (1.5). Total sickness absence for Q2

was 3.2% (3.5%). For the first half of the year,

sickness absence was 3.5% (4.0%). In the quarter, the

share of waste sorting at the source for recycling

was 81% (80%) for construction, 85% (80%) for

rehabilitation and 94% (94%) for demolition.

As at 30 June 2014, AF Gruppen had net interest-

bearing receivables of NOK 390 million (NOK 59

million).

"AF Gruppen is performing well in many areas and

operations are generally good. As expected, the

activity level in offshore operations will be low for

all of 2014, but offshore demolition contracts make

up a good order backlog for 2015 and 2016. It is very

satisfying that land-based operations have

strengthened profit margins and provided organic

growth of 8.7% so far this year. We continued to

recruit 'likeable' associates, who thrive with our

culture and who are concerned with creating value for

AF Gruppen. This, combined with distinct risk

management and organization for good operations will

further strengthen our competitiveness going ahead.

The basis for continued profitable growth is

therefore good," says Pål Egil Rønn, CEO of AF

Gruppen.

For further information, contact:

Pål Egil Rønn, CEO, mobile +47 909 57 713

Sverre Hærem, CFO, mobile +47 952 45 167

Wibecke Brusdal, Director Corporate Communications,

mobile +47 930 93 150

www.afgruppen.no