AF Gruppen — Earnings Release 2016

Nov 15, 2016

AF Gruppen reports a strong 3rd quarter

AF Gruppen reports a strong 3rd quarter

AF Gruppen (AFG) performed well and delivered solid

margins in all its business areas. The company has a

strong financial position. The Board of Directors has

approved a dividend of NOK 3.00 per share for the

second half-year.

AF Gruppen's revenues were NOK 3,108 million (2,865

million) in the 3rd quarter and NOK 8,984 million

(8,889 million) year to date. Earnings before tax were

NOK 265 million (225 million) in the 3rd quarter and

NOK 700 million (622 million) year to date. The profit

margin was 8.5 per cent (7.8 per cent) in the 3rd

quarter and 7.8 per cent (7.0 per cent) year to date.

AF imposes the same strict requirements on all its

partners and suppliers as on its own employees.

Figures from the subcontractors are therefore included

in the injury statistics. The LTI rate for the 3rd

quarter was 1.7 (2.0). The LTI rate year to date was

1.4 (1.0). Sickness absence for the 3rd quarter was

3.4 per cent (3.4 per cent). Sickness absence was 3.7

per cent (3.8 per cent) year to date.

The order book stood at NOK 11,200 million (11,863) on

30 September 2016. Cash flow from operating activities

was NOK 174 million (307 million) in the 3rd quarter

and NOK 516 million (1,023 million) year to date.

AF Gruppen has a strong financial position, and the

group had net interest-bearing receivables of NOK 473

million (301 million) as at 30 September 2016. The

Board of Directors of AF Gruppen adopted a dividend of

NOK 3.00 (3.00) per share for the 2nd half of the year.

AF Gruppen has signed a letter of intent with

Kanonaden Entreprenør AB to acquire 70 per cent of the

shares in the company. The transaction is subject to

due diligence and is expected to close by 31 January

"AF Gruppen continues to deliver solid results in all

six business areas. We are embarking on a new

strategy period with an ambitious target of growing

profitably to revenues of NOK 20 billion by 2020.

Growth will, for example, be achieved in the major

cities in Norway and Sweden, in nationwide project

activities and through taking a greater share of the

offshore market. Our execution capability lies in AF's

3,200 employees, clear core values and emphasis on

safety and risk management", says Morten Grongstad,

CEO of AF Gruppen.

For further information:

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