AF Gruppen — Earnings Release 2014

Feb 13, 2015

AF Gruppen posts record earnings

AF Gruppen posts record earnings

AF Gruppen (AFG) achieved the best net profit ever

and the lowest LTI rate in the history of the

Company in 2014. Operating profit in Q4 was

NOK 241 million (202 million) corresponding to an

operating margin of 8.8 per cent (8.0 per cent).

Q4 turnover totalled NOK 2,730 million (NOK 2,508

million). Earnings before tax were NOK 216 million

(213 million) in Q4, corresponding to a profit

margin of 7.9 per cent (8.5 per cent) for the

quarter.

Turnover in 2014 was NOK 9,935 million (10,127

million). The operating profit for the year was NOK

635 million (568 million), corresponding to an

operating margin of 6.4 per cent (5.6 per cent).

Preliminary profit before tax was NOK 625 million

(NOK 580 million) in 2014, corresponding to a profit

margin of 6.3 per cent (5.7 per cent). AF Gruppen's

total order backlog was NOK 9,429 million (10,976

million). Net operating cash flow was NOK 18 million

(NOK 529 million) in Q4 and NOK 86 million (NOK

1,015 million) in 2014.

AF Gruppen assigns high priority to HSE, and the LTI

rate for Q4 was 1.3 (0.9). The LTI rate for 2014 was

1.1 (1.4). Total sickness absence for Q4 was 3.7 per

cent (3.5 per cent). 2014 sickness absence was 3.5

per cent (3.7 per cent).

AF Gruppen has a strong financial position and as at

31 December 2014 the group had net interest-bearing

debt of NOK 95 million (NOK -751 million). In 2014,

a dividend of NOK 5.00 per share has been proposed.

In December, AF signed a letter of intent with LAB

AS to acquire 70 per cent of the shares in the

company. The transaction is subject to due diligence

and approval by the Board of Directors. It is

expected that the transaction will be carried out in

the first quarter of 2015.

"We are proud that our employees once again have set

new records, headed up by Building and Civil

Engineering. Land-based operations have seen good

growth and have provided a strong result. Profitable

growth is a core value of AF Gruppen, and in recent

quarters we have stepped up the search for growth

opportunities. We emphasize our core values and a

culture of performance by both organic growth and in

the search for potential target companies. With

this, the 2014 results are history, and we will

continue to focus on implementing projects with good

organization and safe operations," 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