AF Gruppen — Investor Presentation 2014

May 15, 2014

Off to a good start

•Revenues

NOK 2,295 million (2,376)

• • Earnings before tax NOK 92 million (91)
• • Cash flow from operations NOK -130 million (-121)
• • Earnings per share NOK 0.80 (0.90)
• • Net interest bearing receivables NOK 902 million (42)
• • Order backlog NOK 10,521 million (9,257)
• • 12 month share price perf.(total return) AFG: +38.3 % (OSEBX: +19.3 %)

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

Revenues

3

Earnings before tax

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

Net interest bearing receivables

Development last 3 years

Net interest bearing receivables as of 31 March is NOK 902 million (42).

Balance sheet

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

9

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.

Civil Engineering

High activity and good performance

• • AF Anlegg continues the good trend from 2013.
• • Increasing activity level and improving results in the Swedish unit, Pålplintar.
• • AF Anlegg was in March nominated as contractor for the building of E39 in Gaular. Contract value NOK 330 million.
• • After quarter-end, AF Anlegg was chosen by Jernbaneverket as contractor for the Åsland preparatory work contract. Contract value NOK 250 million.
• • Total order backlog as of March 31st: NOK 4,088 million (2,756)

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

Environment

Increasing activity

• • Good activity level at the Follum factories project.
• • Slow start of 2014 for Swedish unit, AF Decom AB.
• • Härnösand Byggreturer has a good activity level and delivers good Q1 results.
• • Good opeational performance at Rimol Miljøpark.
• • Jølsen Miljøpark at Skedsmo in an initial phase.
• • Total order backlog as of March 31st: NOK 224 million (283)

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

Building

Margins improving

• • Positive development, and expectations of further improvement, for both building units in Oslo.
• • High activity level, good operations and good results in AF Bygg Østfold.
• • Good operational performance in Strøm Gundersen, but seasonally low activity level.
• • Positive development in AF Bygg Rogaland and AF Bygg Göteborg.
• •AF Bygg Sør has low activity and weak results.
• • In March, AF Bygg Oslo was awarded a contract for a housing project at Hasle in Oslo. Contract value NOK 245 million.
• • After quarter-end, Strøm Gundersen won two building contracts. Total value NOK 307 million.
• • Total order backlog as of March 31st: NOK 4,495 million (4,344)

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

Property

Good housing sales

• • 23 apartments were sold in Q1. AF's share is 11.
• • AF's share of completed unsold housing units was 3 (9) at quarter-end.
• • The apartment project Krydderhagen at Hasle in Oslo has experienced good sales and construction commenced in Q1.
• • As of March 31st, AF owns land and development rights in progress which amounts to 1,019 (938) residential units.

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

Energy

• • Low activity level and weak Q1 results for AF Energi & Miljøteknikk (EMT).
• • A project in the completion phase affects results negatively.
• • The unit has most of its project portfolio in the engineering and analysis phase. These projects are expected to generate implementation projects during 2014.
• • Total EPC contracts are expected to yield an activity of approx. NOK 150 million in addition to existing order backlog.
• • Total order backlog as of March 31st: NOK 56 million (100)

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

Offshore

Varying results

• • AF Decom Offshore has, as previously announced, very low activity and the order backlog will mainly be realized in 2015 and 2016. High activity level for tenders.
• • Aeron experiences an increasing activity level and shows improving results.
• • Mollier and AF Offshore Mandal delivers good Q1 results. Weak quarter for AF Offshore Systems (5D).
• • Good operations at M&M Onshore Facilities in Q1.
• • AF Rig Services carried out a very successful classing and modification assignment for Odfjell Drilling at Vats.
• • Total order backlog as of March 31st: NOK 1,562 million (1,751)

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

Order backlog development Q1 2010 – 2014

Market outlook summary

Environment

Investment level within civil engineering is expected to grow from a high level.

The market is characterised by large infrastructure projects.

• Stable good demand for land-based demolition services.

• Strong correlation with the activity level in building, construction and infrastructure.

• Improved market for non-residential and public building. Building renovation market sable and good.

• Expectant residential market, but signals of increasing housing starts.

• The residential market shows moderate positive signs, after a period of slowing project sales.

• Moderate increase in price level expected in 2014.
• Stable demand for energy services.
• Increased level of EPC-contracts (Energy Performance Contracts).
• Low decommissioning activity in 2014, but increasing amount of tenders.
• Stable activity in the Maintenace & Modification market.
• Positive outlook for marine HVAC services.

AF Gruppen's DNA

GROWTH

ETHICS

LONG-TERM

CHALLENGER

SAFETY

Organizational culture

21

«Cultivate the head of man, and will not need to cut it off".

Victor Hugo

Systematic work on attitude, systems and routines has proven worthwhile

Job satisfaction and sickness absence

Culture and growth

Our growth ambitions implies a great need for recruitment, education and cultural training.

In Universum's 2014 survey, students have voted AF as the most attractive employer amongst construction companies

Thank you for your attention!