Multiconsult

Investor Presentation • Oct 12, 2016

multiconsult.no

CAPITAL MARKETS DAY 2016

MULTICONSULT

CAPITAL MARKETS DAY 2016

TIME AGENDA PRESENTER

10.00	Bridging the past to the future	CEO, Christian Nørgaard Madsen
	Growth and profitability ambitions	CFO, Anne Harris
	Break
11.00	Renewable energy expansion	Head of Renewable Energy, Helge Jenssen
	LINK Arkitektur	EVP Architecture, Leif Øie
11.40	Lunch
12.10	Urbanism	Head of Urban LINK, Sissel Engblom
	The Follo Line Project	VP Engineering management, Morten L. Hoffmann
	New Airbase Ørland	VP Engineering management, Morten Alstad
12.55	Closing comments	CEO, Christian Nørgaard Madsen

DISCLAIMER

This presentation includes forward-looking statements which are based on our current expectations and projections about future events. All statements other than statements of historical facts included in this presentation, including statements regarding our future financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations, including our plans for future costs savings and synergies may be deemed to be forward-looking statements. Words such as "believe," "expect," "anticipate," "may," "assume," "plan," "intend," "will," "should," "estimate," "risk" and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. You should not place undue reliance on these forward-looking statements. In addition, any forward-looking statements are made only as of the date of this notice and we do not, except as required by law, intend and assume any obligation to update any statements set forth in this presentation.

multiconsult.no

CAPITAL MARKETS DAY 2016

BRIDGING THE PAST TO THE FUTURE | CHRISTIAN NØRGAARD MADSEN CEO

Bridging the past to the future

• Consulting engineering and architectural powerhouse
• Flexible business model and multidisciplinary expertise
• Strong and long-standing client relationships
• Proven track record of developing and growing the business
• Strong financial position for future profitable growth

Consulting engineering and architectural powerhouse

% of 2015 Operating revenue

• Offering multidisciplinary consulting, engineering and architecture services to public and private
• 2 222 employees (2Q 2016)
• Strong presence in Norway and global footprint
• Listed on Oslo Børs in May 2015
• 22% shares owned by 43% of employees

On track to deliver on strategic ambitions

On track to deliver on strategic ambitions

#1 Brand recognition among peers, customers and future employees

"A competent expert group with a strong focus on quality in all deliveries" -Vestre Viken Hospital Trust

Delivering profitable growth

NET OPERATING REVENUE vs EBIT MARGIN %

EQUITY, ORDINARY DIVIDEND AND ROE % 2005-2015

A changing industry with fundamentals for growth

Mega trends

• Population growth older, wealthier and educated
• Urbanism great, global and important trend
• Sustainability stricter and comprehensive requirements
• Growing demand for renewable energy, housing, roads, infrastructure, transportation, schools and hospitals

Specific growth drivers for Norway

• Increasing maintenance backlog in public sector
• Large demand for urban development and infrastructure
• Long term demand for buildings, properties, transportation and infrastructure

Market trends and new opportunities

Renewable energy Urbanisation

• Long term energy demand
• Renewables fastest growing
• Significant investments in new build hydropower

• Asia-Pacific dominant region for hydro and other renewables

• Accelerating growth of urban population

• Urbanism transcends global challenges like water, waste, and flood management
• Norwegian players with large growth potential

• Fragmented market, leading position open

• Digitalisation main driver for efficiency

• Big data central for value and improvement
• More advanced tech tools and interaction expected by clients and end users

Digitalisation Other opportunities

• Scandinavia unified as one market with promising outlook
• Substantial investments in hospital buildings expected the next 10 years
• Unexploited potential in group synergies

multiconsult.no

–2–1 GO Six new strategic objectives - building on existing platform

3–2–1 GO How to succeed

1	Entering Sweden	• Similar engineering standards and customer demand • Market cycle hedge • LINK's strong position in Sweden
2	Renewable energy	• Hydropower expertise since 1908 • Renewable energy in South East Asia and Eastern Africa
3	Health buildings	• Combining architectural and engineering efforts • Deep market knowledge enables good interdisciplinary interaction • Growing market in new-build and refurb in Scandinavia
4	Urbanism	• "Urban LINK" already in business • Leveraging on combined efforts (architects, engineers, and analysis)
5	Digitalisation	• Clients value increased efficiency, innovative solutions and big data • Already possess innovative visualisation tools
6	One Multiconsult	• Strong management with track record • Distinct and enabling culture

3 – 2 –1 GO Our ambitions towards 2020

multiconsult.no

CAPITAL MARKETS DAY 2016

GROWTH AND PROFITABILITY AMBITIONS |ANNE HARRIS CFO

Strong financial performance

PROFIT AFTER TAX AND ROE – NOK million/% EQUITY AND ORDINARY DIVIDEND – NOK million

*In 2015, an extraordinary dividend of NOK 192 million was paid to shareholders related to the IPO.

Leveraging on scale and strong market position

• Solid development in B&P maintaining market share
• Built significant position in T&I in recent years
• Strong growth in RE from 2011
• O&G stable over the period

Healthy order back log providing visibility

COMMENTS

• 30% of order backlog with duration of more than 12 months
• Top 3 projects end of June 2016: Tønsberg Hospital, Fylkesvei 109 Råbekken and Campus Ås
• Call-offs on frame agreements included when signed

3–2–1 GO Strong ambitions for 2020

• Other includes expansion to Sweden and new products
• Growth in B&P in Norway and Hospitals Scandinavia
• Growth in T&I reflects positive market development in Norway, limited by capacity constraints
• Renewable energy growth in South East Asia and East Africa
• LINK reflects growth ambition incl. urbanisation and hospitals
• O&G reflects price recovery and activity resuming to modest levels
• Modest growth for Industry incl. seafood and fish farming

3–2–1 GO Maintaining profitability ambition

• More efficient sales process by reduced cost of sales and increased hit-rate
• Increased commercial focus by utilising competitive advantages and pricing intelligence
• Continued focus on project execution
• Cost improvement and efficiency
• Continued focus on billing ratio

Profitability | Continued focus on billing ratio

• Positive development since 2014
• Close management follow-up on individual level
• Still potential in certain units

MERGERS AND AQUSITIONS M&A and organic growth balance

• Target candidates must fit strategic rationale and have profitability potential
• Strategic and systematic M&A approach with defined valuation criteria's

Minimum 50% organic growth towards 2020 ambition to ensure existing culture combined with further development of the company

FINANCIAL TOOLBOX Robust financial capacity to finance M&A ambitions

Equity Cash

NOK million , 31 Dec 2015

Debt NIBD/EBITDA

Key priorities towards 2020

OUR AMBITIONS FINANCIAL POLICIES

• to NIBD/EBITDA 1.5 x
• Dividend policy remains at 50% of net income

multiconsult.no

Q&A

CAPITAL MARKETS DAY 2016|CEO, CHRISTIAN NØRGAARD MADSEN CFO, ANNE HARRIS

multiconsult.no

CAPITAL MARKETS DAY 2016

RENEWABLE ENERGY EXPANSION | HELGE E. JENSSEN HEAD OF RENEWABLE ENERGY Over 1 000 international projects in more than 100 countries since 1970

multiconsult.no

Global growth in renewable energy for the foreseeable future

Strong profitability over the period

Steady growth and majority share of future addressable market in hydropower

Source: The International Reneable Energy Agency (IRENA), MIT, International Hydropower Association, Bloomberg New Energy Finance

Attractive hydropower markets

Source: Aquatic Sciences: A global boom in hydropower dam construction

Attractive hydropower markets - South-East Asia and East-Africa

Areas with high hydropower potential are located in challenging regions

MULTICONSULT ETHICAL CODE OF CONDUCT IS ESSENTIAL IN EVERYTHING WE DO

Includes:

• Procedures and tools for assessing risks
• Integrity due diligence of third-parties

Operationalized by:

• Training for all employees
• Anti-corruption manual
• Managed by Group Compliance Officer

WE ARE EQUIPPED TO MITIGATE THE RISKS

Focus on a larger share of the customer value chain

INTERNATIONAL HYDRO PROJECT VALUE CHAIN

Based on the 5% addressable share of total construction cost:

Multiconsult will increase competitiveness

COMPENTENCE GROWTH WITH LOCAL PRESENCE

Realising growth ambitions largely through strategic acquisitions

Understand market dynamics and the competitive environment through people on the ground

STEPWISE STRUCTURE

Build trust

Comprehend acquisition targets

Grasp client needs

Main success criteria

multiconsult.no

Commit and invest

Local presence

Clear responsibilities

Ambitions build on a long tradition of achieving our goals

3 2 1

multiconsult.no

Q&A

RENEWABLE ENERGY EXPANSION | HELGE E. JENSSEN HEAD OF RENEWABLE ENERGY

multiconsult.no

CAPITAL MARKETS DAY 2016

LINK ARKITEKTUR | LEIF ØIE EVP Architecture

VIVID VISUALISATION TO INCREASE CUSTOMER EXPERIENCED VALUE

• Digital communication skills enhance customer experienced value, i.e. VR
• Building Information Models (BIM) increase interaction efficiency between disciplines
• VR- and BIM technology increase communication efficiency with contractor
• We will continue to strengthen our digital visual capabilities

SHARPENED MARKET FOCUS – CONTINUED EXPANSION

THE LEADING ARCHITECT FIRM IN SCANDINAVIA

SHAPING SOCIETY IN AN URBAN CONTEXT

"Education, housing and hospitals are the most important things for society"

Zaha Hadid Founder of Zaha Hadid Architects

POSITIONED TO REALISE SYNERGIES

BUSINESS UNITS

COUNTRIES

MULTICONSULT GROUP

PROFITABILITY NEEDS TO IMPROVE

ONGOING EFFORTS TO INCREASE PROFITABILITY

• Improving sales efficiency
• Improving project execution
• Reducing overheads
• Longer work weeks

NEW GROWTH INITIATIVES

URBANISM

• Accelerating growth of urban population
• A #1 position in Scandinavia is open
• A substantial contribution to the global climate challenge

HOSPITALS

• Substantial Scandinavian hospital investments are expected over the next 10 years
• Continuous need for investments in rehabilitation
• Taking advantage of existing expertise in LINK and Multiconsult

GEOGRAPHICAL EXPANSION

• Lacking presence in key areas with high population density
• Utilising synergies with Multiconsult
• Exploiting expansion opportunity to acquire strategic competency

AMBITION TO INCREASE ANNUAL REVENUE TO NOK 550 MILLION IN 2020 THROUGH ORGANIC GROWTH AND ACQUISTIONS

LINK ALREADY HAS A STRONG POSITION IN THE MARKET

multiconsult.no

LINK ARKITEKTUR | LEIF ØIE EVP Architecture

multiconsult.no

CAPITAL MARKETS DAY 2016

URBANISM | SISSEL ENGBLOM HEAD OF URBAN LINK

is a verb about

The greatest global trend of our times Our lives are coming closer to one another Our lives Our workplaces and spaces Our homes Our recreation Our experiences Our choices and opportunities

Why urbanism?

"The planet's urban planners are the frontline soldiers in the fight for global sustainability"

JENS STOLTENBERG, SECRETARY GENERAL OF NATO Fmr. PRIME MINISTER OF NORWAY (2005-2013)

Horizon 2020 – the European plattform for reseach

Urbanism is an important factor to win the upcoming big structural projects in Scandinavia – from rail, road to city design

COST-EFFICIENCY OF SUSTANABLE INVESTMENTS:

Minimal effect: Symbols of sustainability - green roofs, energy-efficient building facades, windmills

Moderate effect: Implementation of green systems – recycling, electric vehicles

Maximum effect: The physical urban plan

Source: RealDania, Danish research results from comparative studies of European cities Tekna Lecture Norway 2013

The key is to understand the next life-style

multiconsult.no

To obtain a sustainable development of society we need to combine different fields of expertise

URBAN LINK LEVEL OF AMBITION AND EFFORT

Two keys to strengthening our position in the market

Norway's lagging behind internationally, foreign firms are playing the field. We need to put ambition behind the brand and go Scandinavian.

We recruit the right people with creative strength in conceptual architecture, with artistic and personal communication talents to front the brand.

Great opportunities both nationally and internationally

GROUP SYNERGY

• Group market approach with A&S, LINK and Multiconsult
• Distinct brand to head in the market with Urban LINK
• Key overall focus areas within the group:
• o Urbanism
• o Architecture
• o Analysis
• o Landscape
• o Planning
• o Transportation
• o Energy and environmental

• Organic build-up of key recruitments; young field of expertise so there is a big competition for the best heads – we already have eight

• Full launch Copenhagen

• 2020 • #1 on Urbanism in Scandinavia

We are launching Urban LINK to become #1 on urbanism in Scandinavia by 2020

Urban LINK – we are already doing it

MARCH

Central South, Lillestrøm

PILOT PROJECT: Green Urban neighborhood for pedestrians and bikers by the train station

APRIL

Storgata, Bodø

FEASIBILITY STUDY: Development of the historical center of a small city in Northern Norway

MAY

Harbour of Södra Värtan, Stockholm

EXCLUSIVE COMPETITION:

Create landmark buildings and urban spaces for Bonnier Fastigheter in the new urban extension of Stockholm

AND TENDERING FOR NORWEGIAN GOVERNMENT HEADQUARTERS IN OSLO…

We won in Stockholm! Urban LINK is solving the work-life balance: PORTAL is all about getting it together

multiconsult.no

Q&A

URBANISM | SISSEL ENGBLOM HEAD OF URBAN LINK

multiconsult.no

CAPITAL MARKETS DAY 2016

THE FOLLO LINE PROJECT|MORTEN LUND HOFFMANN VICE PRESIDENT - ENGINEERING MANAGEMENT

THE LARGEST INFRASTRUCTURE INVESTMENT IN NORWAY

NOK 25 billion

total investment

1 st phase

of InterCity and high speed connection to Europe

50 % reduction

in journey time

1 % reduction

of annual climate gas emissions from Norwegian road freight traffic

Four very different sub-projects, each of them alone a giant project

Connection to Oslo S	Tunnels - Ekeberg hills	Follo Line tunnels	Langhus and Ski station
Core railway hub in Norway	Proximity to existing infrastructure	Enormous dimensions	Building through a living city
Detailed planning	Drill and split – no blasting	Single purpose concrete factory on site	Close communication

First mover challenges

Large design and build contracts (EPC) based on offshore contract standard Tunnel boring machine (TBM) not the traditional tunneling method in Norway

International contractors on all EPC contracts

multiconsult.no

Multiconsult chosen as Owner's Engineer

• Strategic desicion to compete for Owner's Engineer contract
• Builds experience and position in the new EPC market

FPS GROUP

COMPETITIVE EDGE

• In depth knowledge and experience about the Follo Line area through previous contracts
• Norway's leading expertise and capacity within all required engineering fields

Multiconsult highlights

Engineering

Procurement

Construction

• Development of basic design
• Detail design of preparatory works
• 2012 • Construction of preparatory works
• EPC execution model decision
• FPS Owner's Engineer contract award
• 2014 • EPC tender development
• EPC tender evaluation
• EPC contract awards
• 2016 • 15 % construction completed
• 3'rd party verification
• Construction management
• 2021 • Estimated project completion

NOK 350 million

Multiconsult revenue

200 architects and engineers

involved

How to continue to succeed

Complex and mega size projects require experience and control

• Experience from large oil and gas projects
• Competence and organization
• Control systems

Top 10 largest projects

Profitability high

Project execution

100% billing ratio

SKI STATION 2021

multiconsult.no

Q&A

THE FOLLO LINE PROJECT|MORTEN LUND HOFFMANN VICE PRESIDENT - ENGINEERING MANAGEMENT

multiconsult.no

CAPITAL MARKETS DAY 2016

NEW AIRBASE ØRLAND|MORTEN ALSTAD VICE PRESIDENT – ENGINEERING MANAGER

A once in a lifetime experience

A complex and complicated project that contains "everything" – requires cooperation

DETAILED PLANNING SCOPE OF WORK ALM GROUP PROCESS

• New collaborative group to meet clients needs
• Multiconsult delivers more than 50 % of total contract

• Maintenance backlog required starting from scratch - everything needed to be rebuild and re-planned

• Engineering management

• Contracting
• Engineering of:
• Runway
• Road
• Maintenance
• Hangar
• Infrastructure
• Water
• District heating
• High voltage

2008

2012

2020

• Decision made to acquire new combat aircrafts

• Decided to locate the base at Ørland

• Contract awarded
• Overall plan
• Pre-design
• Cost
• Detail-design
• Tender document
• Construction drawings
• Follow up advise at the construction site
• 2017 • First aircraft to land

• Estimated project end

NOK 8 billion

project total

multiconsult.no

NOK 250 million

design contract

All to be constructed while the base is operational

multiconsult.no

How to build for something that's still not built

• First mover challenges
• American and Norwegian specifications
• Challenging governmental processes
• Confidentiality issues

Detail engineering for the total project

Ready for take-off

multiconsult.no

Q&A

NEW AIRBASE ØRLAND|MORTEN ALSTAD VICE PRESIDENT – ENGINEERING MANAGER

One Multiconsult – Stronger organisation built by a shared culture