AF Gruppen — Earnings Release 2007

Aug 21, 2015

AF Gruppen reports strong, profitable growth

AF Gruppen reports strong, profitable growth

AF Gruppen (AFG) is on a good run and reported its

best quarter ever. Revenues were NOK 3,490 million

(2,567 million), which corresponds to growth of 35 %

compared with the same quarter last year. Earnings

before tax were NOK 262 million (153 million), and

the profit margin for the quarter was 7.5 % (6.0 %).

Revenues were NOK 6,024 million (NOK 4,862 million)

and earnings before tax were NOK 397 million (245

million) for the first half of the year. The profit

margin for the first half of the year was 6.6 % (5.0

%).

AF Gruppen's total order backlog was NOK 11,552

million (11,427 million). Return on invested capital

was 43.7 % (41.6 %). Cash flow from operating

activities was NOK 223 million (24 million) in the

2nd quarter and NOK 716 million (-106 million) in

the first half of the year.

AF assigns high priority to HSE, and the LTI rate

for the 2nd quarter was 0.8 (1.2). The LTI rate for

the first half of the year was 0.4 (1.1). Total

sickness absence for the 2nd quarter was 3.2 % (3.2

%). For the first half of the year, sickness absence

was 3.9 % (3.5 %).

The agreement to acquire 70 % of the shares in

Målselv Maskin & Transport was carried out on 4

June.

"Our continous work on building a common culture and

developing our employees leads to results. It is

satisfying to see that the engine is firing on all

six cylinders, and that all our business areas are

performing well. Our unshakable confidence in

building up a common culture and development of our

employees is paying off. The organisation is growing

all the time and has increased its capacity

significantly. Over 80 % of our managers are

recruited from our own ranks and give us good

continuity. Even through most measurement parameters

are showing a positive trend, there is still a lot

of room for improvement. We will continue to invest

in the development of our employees and building the

organisation through recruiting employees that share

our core values," says Pål Egil Rønn, CEO of AF

Gruppen.

For further information:

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