AF Gruppen — Earnings Release 2015

Aug 21, 2015

AF Gruppen – 2nd quarter 2015 August 21st 2015

Good operational performance

Profitable growth

•Revenues

NOK 3,490 million (2,567)

• • Operating profit NOK 262 million (146)
• • Cash flow from operations NOK 223 million (24)
• • Earnings per share NOK 1.79 (1.24)
• • Net interest bearing receivables NOK 94 million (390)
• • Order backlog NOK 11,552 million (11,427)

N O K i l l i m o n	Q 2 2 0 1 5	Q 2 2 0 1 4	Y T D 2 0 1 5	Y T D 2 0 1 4
R e v e n u e s	3, 4 9 0	2, 6 5 7	6, 0 2 4	4, 8 6 2
E B I T	2 6 2	1 4 6	3 9 6	2 3 1
E B T	2 6 2	1 5 3	3 9 7	2 4 5
E B I T %	7. 5 %	5. 7 %	6. 6 %	4. 7 %
E B T %	7. 5 %	6. 0 %	6. 6 %	5. 0 %

Revenues

4

Earnings before tax

NOK million NOK million 2012 2013 2014 2015Q1 Q2 Q3 Q4

Return on capital employed

12 month rolling average

*AF's target is to achieve a return on capital employed above 20 %.

Cash flow statement

C h f l t t t a s o w s a e m e n O N K i l l i m o n	Q 2 2 0 1 5	Q 2 2 0 1 4	Y T D 2 0 1 5	Y T D 2 0 1 4
E B I T	2 6 2	1 4 6	3 9 6	2 3 1
D i i i i d i i t t t t e p r e c a o n s, a m o r z a o n a n m p a r m e n	3 2	2 6	5 8	5 1
C h i k i i l t t a n g e n n e w o r n g c a p a	5 -	1 0 4 -	3 8 2	3 1 0 -
O / h d j i d t t t t e r a s m e n s a e s p a u x	6 5 -	4 4 -	1 2 0 -	8 7 -
C h f l f i t a s o r o m o p e r a o n s w	2 2 3	2 4	7 1 6	1 0 6 -
N i t t t e n v e s m e n s	1 4 -	3 4	6 3	1 7
C h f l f i l i i i t t t a s o w r o m c a p a a c v e s	4 8 0 -	5 6 8 -	4 9 1 -	3 2 1 -
C h f f f f i i l i t t t a s e e c r o m n e n a n c a e m s	9 -	2 -	1 4 -	4 -
N h f l t e c a s o w	2 8 1 -	5 1 1 -	2 7 4	3 6 0 -
C h i i b i i b l i h h t t t t t a n g e n n e n e r e s e a r n g r e c e a e s o c a s v w u f f t e e c	0	1 -	8 5 -	1 -
C i i i i h b b l t t t a n g e n n e n e r e s e a r n g r e c e v a e s	2 8 1 -	5 1 2 -	1 8 9	3 6 1 -

Net interest bearing receivables

Development last 3 years

Net interest bearing receivables as of 30 June is NOK 94 million (390).

Balance sheet

N O K i l l i m o n	3 0. 0 6. 2 0 1 5	3 0. 0 6. 2 0 1 4	3 1. 1 2. 2 0 1 4
N t t o n- c r r e n a s s e s u	3 8 3 2 ,	2 1 0 1 ,	2 9 0 7 ,
C C h t t u r r e n a s s e s, e x. a s	2 7 9 5 ,	2 6 3 5 ,	2 4 3 1 ,
C h d h i l t a s a n c a s e q u v a e n s	1 1 8	5 5 5	9 1
T l t t o a a s s e s	6, 7 4 5	5, 2 9 1	5, 4 2 8
E i t q u y	1, 7 0 2	1, 2 0 0	1, 4 9 9
L d b t t o n g e r m e	6 3 1	4 6 7	4 0 4
S h d b t t t o r e r m e	4 4 1 3 ,	3 6 2 3 ,	3 2 5 5 ,
T l i d d b t t t o a e q a n e u y	5 6, 7 4	5, 2 9 1	5, 4 2 8

Equity ratio 2011 - 2015

22,7 % 25,2 % 0%10%20%30%40%2011 2012 2013 2014 YTD 2014 YTD 2015The Board will propose to the General Meeting that the company shall pay semi-annual dividends. Preferably, the dividends will be paid after the General Meeting, and subsequent to the 3Q results presentation.

Health, safety and the environment

Lost time to injuries and sick leave

*Lost time to injuries (LTI): Number of injuries resulting in absence per million man-hours. AF includes all subcontractors in the calculation basis for the LTI rate.

Health, safety and the environment

Source separation and recycling

Source separation rate

*Government requirements for source separation

Order backlog development Q2 2011 – 2015

Civil Engineering

High activity level, good results

• • AF Anlegg has had a very high activity level during Q2. good operational performance and good results. Large supply of new projects in the market and the tender activity is high.
• • Pålplintar has increasing activity and improving results in Q2.
• • The acquisition of Målselv Maskin & Transport AS was completed in June. The company shows good operational performance.
• • AF Anlegg entered into an agreement with AGJV for building and construction of tunnels and caverns on the Follo line. Contract value NOK 350 million.
• • After quarter-end, AF Anlegg entered into an agreement for the structural work on the New National Museum. Contract value approx. NOK 350 million.
• • Total order backlog as of June 30th: NOK 3,480 million (4,015)

N O K i l l i m o n	Q 2 2 0 1 5	Q 2 2 0 1 4	Y T D 2 0 1 5	Y T D 2 0 1 4
R e v e n u e s	1, 0 0 0	8 3 6	1, 1 7 5	1, 4 2 5
E B I T	6 2	2 5	1 0 4	1 0 8
E B T	6 1	3 5	1 0 1	1 1 3
E B I T %	6. 2 %	6. 2 %	5. 9 %	7. 0 %
E B T %	6. 1 %	6. 4 %	5. 8 %	7. 4 %

Environment

Increasing activity, good performance

• • High activity level and good results from AF Decom AS in the 2nd quarter.
• • Härnösand Byggreturer has good operational performance and delivers good results in Q2.
• • Rimol Miljøpark and Jølsen Miljøpark delivers satisfactory results in Q2. Increasing activity is expected.
• •Good activity level in BA Gjenvinning.
• • Total order backlog as of June 30th: NOK 231 million (194)

N O K i l l i m o n	Q 2 5 2 0 1	Q 2 2 0 1 4	Y T D 5 2 0 1	Y T D 2 0 1 4
R e v e n u e s	1 7 2	1 5 8	3 5 8	3 1 3
E B I T	1 3	3 1	2 3	3 5
E B T	1 3	3 0	2 3	3 3
E B I T %	7. 5 %	1 9. 9 %	6. 3 %	1 1. 2 %
E B T %	6 % 7.	1 9. 2 %	6. % 5	1 0. % 5

Building

High activity level and good operational performance

• • AF Bygg Østfold, AF Bygg Oslo, AF Bygg Rogaland and AF Bygg Göteborg all have good performance and delivers good 2nd quarter results.
• • AF Byggfornyelse has a lower activity level in Q2 while AF Bygg Sør delivers weak Q2 results.
• • Strøm Gundersen and LAB with subsidiaries shows good operational performance and good results in the 2nd quarter.
• • Two large contracts signed in the 2nd quarter. Total contract value NOK 623 million, excl. VAT.
• • Total order backlog as of June 30th: NOK 6,086 million (4,882)

N O K i i l l m o n	Q 2 2 0 1 5	Q 2 2 0 1 4	Y T D 2 0 1 5	Y T D 2 0 1 4
R e e n e s v u	1, 8 8 2	1, 3 3 6	3, 1 2 4	2, 4 8 0
E B I T	1 4 7	7 0	2 1 9	1 0 1
E B T	1 4 4	6 9	2 1 9	9 8
E B I T %	7. 8 %	5. 2 %	7. 0 %	4. 1 %
E B T %	% 7. 7	2 % 5.	0 % 7.	4. 0 %

Property

Good housing sales

• • AF has launched four housing projects in Q2, which all have been well received in the market.
• • 178 (27) apartments were sold in Q2. AF's share is 67 (12). AF's share of completed unsold housing units was 16 (0) at quarterend.
• • Property has two projects in the production phase, and three projects have been initiated with expected building start-up in Q3.
• • As of June 30th, AF owns land and development rights in progress which amounts to 1,213 (1,048) residential units.
• • AF has 59,272 (14,643) m2 gross area of urban business premises under development.

N O K i i l l m o n	Q 2 2 0 1 5	Q 2 2 0 1 4	Y T D 2 0 1 5	Y T D 2 0 1 4
R e e n e s v u	9	7	1 2	1 6
E B I T	4	3	7	7
E B T	2	2	2	5
E B I T %	4 8. 8 %	4 1. 1 %	5 8. 7 %	4 6. 3 %
E B T %	1 8. 9 %	2 3. 4 %	1 1 % 5.	3 0. % 5

Energy

Increasing activity level and good results

• • AF Energi & Miljøteknikk (EMT) experiences an increasing activity level and delivers good results in the 2nd quarter.
• • The unit has a large part of its project portfolio in the analysis and engineering phase.
• • EMT was in Q2 awarded a contract with Avinor to deliver the heating and cooling plant for the new T3 terminal at Bergen Airport Flesland. Contract value NOK 81 million.
• • Total order backlog as of June 30th: NOK 177 million (125)

N O K i i l l m o n	Q 2 2 0 1 5	Q 2 2 0 1 4	Y T D 2 0 1 5	Y T D 2 0 1 4
R e e n e s v u	5 7	3 3	9 7	6 1
E B I T	5	2	7	-
E B T	5	3	7	-
E B I T %	8. 9 %	5. 6 %	7. 0 %	0. 6 % -
E B T %	9. 0 %	8 % 7.	2 % 7.	0. 4 %

Offshore

High activity due to offshore campaign

• • AF Offshore Decom's offshore campaign contributed to the high activity level in Q2. The unit performs well.
• • Satisfactory activity level in AF Offshore Aeron. Good 2nd quarter results.
• • Activity level in AF Offshore Mollier, AF Offshore Mandal and AF Offshore Systems is effected by the market conditions and the units delivers weak quarterly results.
• • Good operational performance for MMO Onshore Facilities in Q2.
• • AF Offshore Mollier was in April awarded a contract with Statoil for the supply of HVAC equipment to the Johan Sverdrup Field Centre. Contract value NOK 250 million excluding options.
• • Total order backlog as of June 30th: NOK 1,200 million (2,156)

N O K i i l l m o n	Q 2 2 0 1 5	Q 2 2 0 1 4	Y T D 2 0 1 5	Y T D 2 0 1 4
R e e n e s v u	4 6 9	2 3 8	8 6 3	5 1 1
E B I T	4 7	3 -	6 8	4 -
E B T	5 0	3 -	6 8	4 -
E B I T %	1 0. 1 %	1. 1 % -	7. 8 %	0. 8 % -
E B T %	1 0. 6 %	1. 3 % -	9 % 7.	0. 8 % -

Market outlook summary

Environment

Large supply of public building projects. Building renovation market stable and good.

Investment level within civil engineering is at a high level. The competition is high.

• Large regional differences in Norwegian residential market and business premises market.
• Improving market in Sweden
• The residential market is positive, but with regional differences.
• A moderate increase in price level expected.

Large supply of new projects in the market.

• Stable demand for energy services.
• Increased activity level within EPC-contracts (Energy Performance Contracts).
• Increasing tender activity for building energy centrals.
• Increase in decommissioning tender activity due to lower oil prices.
• Low activity in the Maintenace & Modification market.
• Stable activity level in marine HVAC market.

Employee development in AF Gruppen

Opportunites from profitable growth

Recruiting new AF'ers

AF works actively and goal-oriented with recruitment at colleges and universities.

The goal is to be the most attractive employer in the construction business.

From being the least attractive construction company among engineering students in 2007, AF is the most attractive today*.

AF has received 860 job applications from engineering and business graduates in 2015.

1 170 students applied for summer internship in AF in 2015. (982 in 2014 and 650 in 2013)

Living up to our values is crucial for the project result

Project risk Tornado diagram

In AF, the young don't have to wait for the older to retire in order to move up the latter. Christoffer / Building

Reliability

Freedom to practice entrepreneurship and discipline in relation to goals and requirements

Thoroughness and hard work

PRESENTASJONPersistence in achieving profitable growth

August 20, 2015 Management through presence and involvement