INTERIM REPORT Q2 and first half | 2019

HIGHLIGHTS AND KEY FIGURES Q2 2019

HIGHLIGHTS

\ Second quarter EBIT of negative NOK 15.9 million
\ Compared to second quarter 2018, the result is impacted negatively by NOK 85.0 million from calendar effect and legal settlement – underlying profitability improvement
\ First half 2019 EBIT of NOK 76.5 million underlying improvement compared to first half 2018
\ First half 2019 revenue growth of 3.7%, reflecting higher activity level
\ Strong order backlog at NOK 2.7 billion
\ Initiatives under GO strategy on track

"Despite a lower reported result compared to the same period last year, I am pleased to see that the underlying profitability is improving both in the second quarter and first half 2019. It is also encouraging to see that the growth continues and that we have a strong order backlog. However, the overall profitability level is not satisfactory, and we will continue to work hard to improve this – focusing on cost, efficiency and operations."

Grethe Bergly CEO of Multiconsult ASA

Amounts in TNOK	Q2 2019	Q2 2018	H1 2019	H1 2018
FINANCIAL
Net operating revenues	866 703	887 573	1 810 946	1 746 663
Net write-downs	(25 430)	(12 681)	(33 327)	(25 315)
Operating expenses	835 333	826 298	1 641 280	1 636 940
Employee benefit expenses	700 114	660 507	1 391 012	1 323 933
Other operating expenses	135 218	165 791	250 267	313 007
EBITDA	31 370	61 275	169 666	109 723
EBITDA margin	3.6%	6.9%	9.4%	6.3%
EBITDA excluding IFRS 16 effect	(8 753)	N/A	90 472	N/A
EBIT	(15 930)	48 895	76 540	85 004
EBIT margin	(1.8%)	5.5%	4.2%	4.9%
EBIT excluding IFRS 16 effect	(21 346)	N/A	65 823	N/A
Reported profit for the period	(21 820)	37 036	37 138	62 310

CONSOLIDATED KEY FIGURES

OPERATIONAL

71.3%	71.8%	70.6%	71.2%
2 964	2 855	2 964	2 855
902 036	1 130 911	2 073 860	2 232 067
2 724 731	2 302 011	2 724 731	2 302 011

SECOND QUARTER AND FIRST HALF 2019 GROUP REVIEW

Multiconsult second quarter EBIT came in at negative NOK 15.9 million. Compared with the second quarter 2018, the result is impacted by a significant calendar effect and legal settlement with the Norwegian Parliament (Stortinget), totalling NOK 85.0 million. EBIT in first half 2019 was NOK 76.5 million, reflecting a 4.2% margin. The improvement in underlying EBIT margin can be seen as the organisation is working on its main target of improving its profitability within the framework of GO strategy.

FINANCIAL REVIEW

(Figures in brackets = same period prior year or relevant balance sheet date 2019). The group implemented IFRS 16 on 1 January 2019 using the modified retrospective approach. Comparative information will not be restated. For more details of the effects in the financial statements second quarter and first half see note 13.

Group results

Second quarter 2019 Multiconsult group

The decrease in net operating revenues compared to second quarter 2018 of 2.4% is impacted by lower production in Norway due to a calendar effect of five less working days, with an impact of NOK 64.8 million. There was a settlement on legal dispute with Stortinget in the Prinsens gate 26 construction project, reported as a net project write-down and impacted net operating revenues with NOK 20.2 million in the quarter. In total, net project write-downs were 2.9% of net operating revenues. Excluding the Stortinget legal dispute settlement, net project write-downs were 0.6% of net operating revenues. Adjusted for calendar effect and settlement with Stortinget, organic growth in net operating revenues was 7.2%. Net recruitment of 109 employees drove organic growth year-onyear. A slightly lower billing ratio in the quarter was mainly due to lower activity in some units in the Regions Norway segment as well as in units in the Renewable Energy business area, and impacted growth in revenues negatively. Average group billing rates were at a similar level compared to the same period in 2018, but were higher in the Norwegian segments.

Operating revenues by business area Q2

Operating expenses consist mainly of employee benefit expenses and other operating expenses. Total operating expenses were at a higher level than in the same period last year. There was a positive IFRS 16 effect of NOK 40.1 million in the second quarter 2019. Adjusted for the IFRS effect, the level of operating expenses increased by 5.9%. The increase is caused by net recruitment and ordinary salary adjustment.

EBITDA was NOK 31.4 million (NOK 61.3 million), including a positive NOK 40.1 IFRS 16 effect.

EBIT was negative NOK 15.9 million (NOK 48.9 million), including negative calendar effect of NOK 64.8 million, the legal settlemet with Stortinget of negative NOK 20.2 million, and a positive IFRS 16 effect of NOK 5.4 million.

Net financial items were an expense of NOK 13.2 million (expense of NOK 1 million), including a negative IFRS 16 effect of NOK 9.5 million.

Group tax rate was 24.3% (23.0%).

Reported loss for the period was NOK 21.8 million, including a negative NOK 4.2 million IFRS 16 effect.

First half 2019 Multiconsult group

The increase in net operating revenues of 3.7% is purely organic and mainly driven by higher production in Norway. There was net recruitment of 109 employees in the group. A calendar effect of one less working day in Norway impacted net operating revenues negatively by NOK 14.6 million compared to the same period previous year. A lower billing ratio in the period was mainly due to lower activity in some units in the Regions Norway segment as well as in units in the Renewable Energy business area, and further impacted growth in revenues negatively. Net project write-downs were 1.8% in the period, including the settlement of the legal dispute with Stortinget, and impacted net operating revenues accordingly. Excluding the Stortinget legal dispute settlement, net project writedowns were 0.7% of net operating revenues. Adjusted for calendar effect and settlement with Stortinget, organic growth in net operating revenues was 5.7%. Average group billing rates were at a similar level compared to the same period in 2018.

Operating expenses were at a slightly higher level than in the same period last year. There was an IFRS 16 effect of NOK 79.2 million in first half 2019. Adjusted for the IFRS effect, the level of operating expenses increased by 5.1%. The increase is caused by net recruitment and ordinary salary adjustment. One-off severance agreement expenses of approximately NOK 10 million as a result of several management changes were recorded in the first quarter.

EBITDA was NOK 169.7 million (NOK 109.7 million), including a positive NOK 79.2 million IFRS 16 effect.

EBIT was NOK 76.5 million (NOK 85.0 million), reflecting an EBIT margin of 4.2% in the period, including a negative calendar effect of NOK 14.6 million, the legal settlemet with Stortinget of negative NOK 20.2 million, and positive IFRS 16 effect of NOK 10.7 million.

Net financial items were an expense of NOK 28.1 million (expense of NOK 3.3 million), including a negative IFRS 16 effect of NOK 19.0 million.

Group tax rate was 22.8% (24.0%)

Reported profit for the period was NOK 37.1 million, including a negative NOK 8.5 million IFRS 16 effect.

Financial position, cash flow and liquidity Second quarter 2019 Multiconsult group

Net cash flow from operating activities was positive NOK 107.3 million (NOK 54.4 million). The increase is mainly caused by positive change in working capital.

Net cash flow used in investment activities was NOK 11.2 million this quarter (NOK 12.8 million), related to ordinary asset replacement.

Net cash flow from financing activities amounted to negative NOK 114.0 million (NOK 63.9 million), mainly due to dividend paid, lease liability payment and reduction in current interest bearing debt.

First half 2019 Multiconsult group

Net cash flow from operating activities was positive NOK 43.0 million (negative NOK 43.5 million). The increase is mainly related to higher cash flow from operating activities and lower build-up of working capital.

Net cash flow used in investment activities was NOK 39.5 million (NOK 27.4 million), related to ordinary asset replacement.

Net cash flow from financing activities amounted to negative NOK 110.2 million (positive NOK 54.7 million). The change is related to lease liability payment in 2019, paid dividend in the second quarter 2019 and interest bearing debt increase in 2018.

Consolidated financial position

As of 30 June 2019, total assets amounted to NOK 2 787.6 million (NOK 2 911.1 million at 31 March 2019), and total equity amounted to NOK 582.5 million (NOK 645.6 million at 31 March 2019).

The group held cash and cash equivalents of NOK 31.4 million as of 30 June 2019 (NOK 48.8 million as of 31 March 2019). Net interest bearing debt amounted to NOK 1 141.3 million (NOK 1 187.3 million at 31 March 2019). Adjusted for IFRS 16 lease obligations, net interest bearing debt is NOK 167.9 million (NOK 186.6 million at 31 March 2019).

ORDER BACKLOG AND INTAKE

The order backlog at the end of the second quarter 2019 remains strong at NOK 2 724.7 million (NOK 2 302.0 million). Business areas Buildings & Properties and Transportation currently have the largest proportion of the order backlog, while Water & Environment increased significantly compared to the same period previous year.

Order intake during the second quarter decreased significantly compared to a strong second quarter in 2018. Buildings & Properties, Water & Environment, Industry and Cities & Society decreased, while Transportation, Oil & Gas and Renewable Energy increased.

Among significant new contracts this quarter was LINK arkitektur's Lambertseter nursing home with Oslo kommune. Among significant call-offs on existing contracts were Mjøsa Bridge with Nye Veier and Stad Ship Tunnel with Kystverket.

The order backlog does not reflect awarded frame agreements. The order backlog includes only call-offs that

PROFITABILITY IMPROVEMENT PROGRAMME

Multiconsult is progressing on the GO strategy including group-wide profitability improvement measures. These include measures to improve sales processes, realise efficiency gains, improve project profitability, improve billing ratio and optimise the portfolio.

Profitability improvement is top priority for Management, which will continue to focus specifically on cost level and project execution.

have been signed under these agreements. Some of the large frame agreements are for example Fornebubanen for Oslo kommune, submarine maintenance facilities with Forsvarsbygg

and safety and RAMS with Bane NOR.

SEGMENTS

Multiconsult's reporting segments are presented as four segments, Greater Oslo Area, Regions Norway, International, and one for LINK arkitektur.

Greater Oslo Area

This segment offers services in seven business areas and comprises the central area of Eastern Norway, with regional offices in Oslo, Fredrikstad and Drammen.

Key figures Greater Oslo Area

Amounts in MNOK	Q2 2019	Q2 2018	H1 2019	H1 2018
Net op. revenues	359.7	409.2	803.7	802.2
EBITDA	(18.6)	29.9	46.4	45.3
EBITDA%	(5.2%)	7.3%	5.8%	5.6%
EBIT	(28.9)	26.3	30.2	37.9
EBIT%	(8.0%)	6.4%	3.8%	4.7%
Order intake	381.9	624.5	985.3	1 056.0
Order backlog	1 182.8	949.4	1 182.8	949.4
Billing ratio	70.6%	71.4%	70.2%	70.5%
Employees	1 179	1 164	1 179	1 164

Second quarter 2019 Greater Oslo Area

The decrease in net operating revenues of 12.1% in the quarter was mainly impacted by the calendar effect of five less working days in Norway, with a negative impact of NOK 33.7 million compared to the same period last year. Net project write-downs were NOK 24.7 million (NOK 7.2 million) in the period, including the settlement of the legal dispute with Stortinget of NOK 20.2 million, and impacted net operating revenues accordingly. Adjusted for the calendar effect and settlement with Stortinget, growth in net operating revenues was 1.1%. Higher activity level in the quarter resulted in net recruitment, and contributed to the growth. Billing rates were at a higher level and impacted net operating revenues positively.

Operating expenses came in at similar level to same period in 2018. There was a positive IFRS 16 effect of NOK 7.4 million on other operating expenses in the quarter. Employee benefit expenses increased, but less than the increase in manning level, mainly due to positive effects from a change in manning mix. Other operating expenses decreased both including and excluding the IFRS 16 effect.

EBITDA was negative NOK 18.6 million (positive NOK 29.9 million), including a positive IFRS 16 effect of NOK 7.4 million.

EBIT was negative NOK 28.9 million (positive NOK 26.3 million) in the quarter, including a negative calendar effect in Norway of NOK 33.7 million, the legal settlemet with Stortinget of negative NOK 20.2 million, and a slightly positive IFRS 16 effect of NOK 0.8 million.

There was lower order intake in the quarter, mainly resulting from decreased sales in business areas Buildings & Properties, Water & Environment and Cities & Society. All the other business areas increased.

Order backlog for the segment at the end of the second quarter is strong at NOK 1 182.8 million, with business areas Buildings & Properties and Transportation as largest proportions and Water & Environment with the highest growth compared to the same period previous year.

First half 2019 Greater Oslo Area

The increase in net operating revenues of 0.2% in the period was mainly driven by higher activity level, which resulted in net recruitment. Net project write-downs were NOK 27.4 million (NOK 16.5 million) in the period, including the settlement of the legal dispute with Stortinget of NOK 20.2 million, and impacted net operating revenues accordingly. A calendar effect of one less working day in Norway impacted growth in net operating revenues negatively by NOK 7.3 million compared to the

same period last year. Adjusted for the calendar effect and settlement with Stortinget, growth in net operating revenues was 3.6%. Billing rates were at a higher level and impacted net operating revenues positively.

Operating expenses came in at similar level to same period in 2018. There was a positive IFRS 16 effect of NOK 10.1 million on other operating expenses in the period. Employee benefit expenses increased, but less than the increase in manning level, mainly due to positive effects from a change in manning mix. Other operating expenses decreased both including and excluding the IFRS 16 effect.

EBITDA was NOK 46.4 million (positive NOK 45.3 million), including a positive IFRS 16 effect of NOK 10.1 million.

EBIT was NOK 30.2 million in the period (NOK 37.9 million), including a negative calendar effect in Norway of NOK 7.3 million, the legal settlemet with Stortinget of negative NOK 20.2 million, and a slightly positive IFRS 16 effect of NOK 1.0 million.

The order intake decreased by 6.7% in the period, mainly resulting from decreased sales in business areas Buildings & Properties and Water & Environment. All the other business areas increased.

Regions Norway

This segment offers services in seven business areas and comprises regional offices in Stavanger, Bergen, Trondheim and Tromsø.

Key figures Regions Norway

Amounts in MNOK	Q2 2019	Q2 2018	H1 2019	H1 2018
Net op. revenues	295.4	295.2	603.3	574.5
EBITDA	32.8	31.6	81.3	51.1
EBITDA%	11.1%	10.7%	13.5%	8.9%
EBIT	14.0	25.9	45.4	39.6
EBIT%	4.8%	8.8%	7.5%	6.9%
Order intake	319.5	277.5	669.0	692.9
Order backlog	588.3	487.7	588.3	487.7
Billing ratio	69.5%	72.8%	70.2%	71.4%
Employees	857	831	857	831

Second quarter 2019 Regions Norway

Net operating revenues remained at a similar level to the second quarter in 2018. There was higher activity level, which resulted in net recruitment. The growth was partly offset by a lower billing ratio. A calendar effect of five less working days in Norway impacted growth in net operating revenues negatively by NOK 24.0 million compared to the same period last year. Adjusted for the calendar effect, growth in net operating revenues was 8.2%. Net project write-downs in the period came to NOK 3.9 million (NOK 5.8 million) and reduced net operating revenues accordingly. Billing rates were at a higher level and impacted net operating revenues positively.

Operating expenses decreased slightly in the quarter, helped by a positive IFRS 16 effect of NOK 15.6 million on other operating expenses. Employee benefit expenses increased, but less than the increase in manning level. Other operating expenses decreased both including and excluding the IFRS 16 effect.

EBITDA came in at NOK 32.8 million (NOK 31.6 million) including a positive IFRS 16 effect of NOK 15.6 million.

EBIT was NOK 14.0 million (NOK 25.9 million), reflecting an EBIT margin of 4.8% in the quarter, including a negative calendar effect in Norway of NOK 24.0 million and positive IFRS 16 effect of NOK 2.3 million.

Order intake in the quarter increased by 15.1% mainly for business areas Buildings & Properties and Transportation, whereas Industry experienced a decline in the quarter.

Order backlog for the segment at the end of the second quarter increased by 20.6% and is solid at NOK 588.3 million, with business areas Buildings & Properties and Transportation as largest proportions and Transportation with the highest growth compared to the same period previous year.

First half 2019 Regions Norway

There was an increase of 5.0% in net operating revenues. Higher activity level and improved project execution contributed positively, whereas a negative calendar effect of one less working day impacted revenues by NOK 5.5 million. Adjusted for the calendar effect, growth in net operating revenues was 5.9%. Net project write-downs in the period came to NOK 8.4 million (NOK 11.6 million) and reduced net operating revenues accordingly. Billing rates were at a higher level and contributed to growth in net operating revenues compared to the same period in 2018.

Operating expenses decreased slightly in the period, partly driven by a positive IFRS 16 effect of NOK 29.5 million on other operating expenses. Employee benefit expenses increased, in line with growth in manning level. Other operating expenses increased, adjusted for the IFRS 16 effect, mainly due to reorganisation of office areas to accommodate higher manning level and work efficiency in the beginning of the year.

EBITDA came in at NOK 81.3 million (NOK 51.1 million) including a positive IFRS 16 effect of NOK 29.5 million.

EBIT was NOK 45.4 million (NOK 39.6 million), reflecting an EBIT margin of 7.5% in the period, including a negative calendar effect in Norway of NOK 5.5 million and positive IFRS 16 effect of NOK 4.3 million.

Order intake in the period decreased by 3.4% mainly for business areas Buildings & Properties and Industry, whereas Transportation experienced a solid increase.

International

This segment comprises the subsidiaries Multiconsult UK, Multiconsult Asia, Multiconsult Polska and Iterio AB.

Key figures International

	Q2	Q2	H1	H1
Amounts in MNOK	2019	2018	2019	2018
Net op. revenues	61.6	55.0	118.3	106.1
EBITDA	11.8	6.0	18.3	11.9
EBITDA%	19.1%	10.9%	15.4%	11.2%
EBIT	8.6	5.4	11.7	10.8
EBIT%	13.9%	9.8%	9.9%	10.2%
Order intake	73.5	52.4	122.4	100.3
Order backlog	397.4	324.9	397.4	324.9
Billing ratio	76.1%	73.6%	75.7%	74.6%
Employees	310	245	310	245

Second quarter 2019 International

Net operating revenues increased by 11.9% in the second quarter mainly driven by higher activity level, which resulted in net recruitment in Iterio AB and Multiconsult Polska. The positive contribution was partly offset by lower average billing rates. Billing ratio was at a higher level and contributed positively to net operating revenues, driven by Multiconsult Polska and higher activity in Iterio AB.

Higher net operating revenues were partly offset by increased operating expenses. There was a positive IFRS 16 effect of NOK 2.7 million on other operating expenses in the quarter. Employee benefit expenses increased, but less than the significant increase in manning level. Other operating expenses decreased, but were at a similar level adjusted for the IFRS 16 effect.

EBIT was NOK 8.6 million, reflecting an EBIT margin of 13.9% in the quarter, including a positive IFRS 16 effect of NOK 0.1 million.

Order intake in the second quarter increased by 40.3%, mainly coming from business area Transportation in Multiconsult Polska and Iterio AB.

Order backlog for the segment at the end of the second quarter increased by 22.3% to NOK 397.4 million, with business area Transportation as the largest contributor.

First half 2019 International

Net operating revenues increased by 11.4% in the first half of 2019 mainly driven by higher activity level, which resulted in net recruitment in Iterio AB and Multiconsult Polska. The positive contribution was partly offset by lower average billing rates. Billing ratio was at a higher level than previous year and contributed positively to net operating revenues, driven by Multiconsult Polska and higher activity in Iterio AB.

Higher net operating revenues were partly offset by increased operating expenses. There was a positive IFRS 16 effect of NOK 5.5 million on other operating expenses in the period. Employee benefit expenses increased, but less than the significant increase in manning level. Other operating expenses decreased, but increased when adjusted for the IFRS 16 effect. The increase is however less than the increased manning level.

EBIT was NOK 11.7 million, reflecting an EBIT margin of 9.9% in the first half of 2019 , including a positive IFRS 16 effect of NOK 0.3 million.

Order intake in the period increased by 22.0% compared to the first half 2018.

LINK arkitektur

This segment comprises LINK arkitektur with its 15 offices throughout Scandinavia.

Key figures LINK arkitektur

Amounts in MNOK	Q2 2019	Q2 2018	H1 2019	H1 2018
Net op. revenues	141.3	132.7	293.6	274.4
EBITDA	13.2	5.4	38.6	20.0
EBITDA%	9.3%	4.0%	13.2%	7.3%
EBIT	6.7	3.4	25.9	16.3
EBIT%	4.8%	2.6%	8.8%	5.9%
Order intake	127.1	176.6	297.2	377.8
Order backlog	486.0	540.0	486.0	540.0
Billing ratio	75.7%	73.8%	75.5%	74.9%
Employees	500	485	500	485

Second quarter 2019 LINK arkitektur

The increase in net operating revenues of 6.5% in the second quarter was mainly driven by increased average billing rates and higher billing ratio in LINK arkitektur Norway and LINK arkitektur Denmark. The increase in net operating revenues was partly offset by the calendar effect of five less working days in Norway, one less working day in Sweden and two less working days in Denmark, resulting in a negative impact of NOK 6.7 million compared to same period previous year. Adjusted for the calendar effect, growth in net operating revenues was 11.6%. Low project activity in LINK arkitektur Sweden partly offset the growth.

Operating expenses increased in the quarter, due to higher employee benefit expenses as a result of net recruitment. There were a positive IFRS 16 effect of NOK 4.9 million, recorded on other operating expenses in the quarter.

EBIT was NOK 6.7 million, reflecting an EBIT margin of 4.8% in the quarter, including a positive IFRS 16 effect of NOK 0.4 million.

Order intake in the second quarter decreased mainly due to low order intake in LINK arkitektur Sweden and LINK arkitektur Denmark. The majority of the order intake in the quarter came from nursing homes and other buildings.

Order backlog for the segment at the end of second quarter was down to NOK 486.0 million.

First half 2019 LINK arkitektur

The increase in net operating revenues of 7.0% in the first half of 2019 was mainly driven by increased production from net recruitment and higher billing ratio. The increase in net operating revenues was partly offset by the calendar effect of one less working day, resulting in a negative impact of NOK 1.4 million compared to same period previous year. Adjusted for the calendar effect, growth in net operating revenues was 7.5%. Low project activity in LINK arkitektur Sweden partly offset the growth. Average billing rates were at a higher level.

Operating expenses slightly increased in the period, mainly due to higher employee benefit expenses as a result of net recruitment. There was a positive IFRS 16 effect of NOK 9.8 million, recorded on other operating expenses in the first half of 2019. Employee benefit expenses increased in line with the increased manning level. Other operating expenses were at a lower level than in first half 2018, but at a similar level when adjusted for the IFRS 16 effect.

EBIT was NOK 25.9 million, reflecting an EBIT margin of 8.8% in first half 2019, including a positive IFRS 16 effect of NOK 0.9 million.

Order intake in the period decreased mainly due to low order intake in LINK arkitektur Sweden.

ORGANISATION AND HSE

At 30 June 2019 the group had 2 964 (2 855) employees. The employee turnover ratio for the group for the period June 2018 to June 2019 was 10.4% (5.9%). The recorded sick leave ratio for the Multiconsult group was 3.2% in the second quarter.

Number of employees

SUBSEQUENT EVENTS

There were no subsequent events after the second quarter 2019.

OUTLOOK

The overall market outlook shows growth across most business areas.

Buildings & Properties is expected to maintain growth, especially within health care and education, but with moderate decline in the residential market.

The outlook for the architecture market is fairly positive in most areas especially within healthcare buildings in Norway.

Public sector investment, confirmed by the National Budget for 2019, is driving a good outlook for Transportation within road and rail. Several large projects are expected to be assigned in the coming year.

The Renewable Energy market in Norway is expected to remain stable. Wind power in Norway is at a high level. International Renewable Energy markets generally continue to grow, but long lead-time for project decisions is challenging.

Investment in the Industry sector in Norway is expected to increase, a view supported by reports from Statistics Norway (SSB), but global macroeconomic and political uncertainties may influence the growth.

Demand for our services in the Oil & Gas market has slowly improved and is expected to continue improving gradually going forward.

Within Water & Environment there is stable demand for water and waste infrastructure projects as well as for soil contamination inspections. The market for geo hazard service is growing due to climate changes resulting in more extreme weather conditions.

The overall competitive landscape has moved towards more Engineering, Procurement and Construction (EPC), OPS and Private-Public Partnerships (PPP) contracts and Best Value Procurement, driving new contract structures for the consulting business. Larger contracts are attracting international construction companies. Strong market outlook with increased project pipeline has resulted in somewhat reduced price pressure across most business areas in Norway. However, the cost level still creates challenges to profitability.

Multiconsult's strong market position, flexible business model and wide service offering provides a sound base for profitable growth, both domestic and international.

The order backlog is solid and provides a good foundation for growth, supported by valuable frame agreements generated from a broad customer base.

RISK AND UNCERTAINTIES

The risk of disagreements and legal disputes related to the possible cost of delays and project errors is always present in the consultancy business. Multiconsult has developed internal procedures and competences to reduce risk exposure for legal disputes. Multiconsult has also relevant insurance policies and routines for protection of potential consequences of such matters. Further details regarding the insurance coverage are provided in note 20 to the consolidated financial statements for 2018.

Multiconsult has not identified any additional risk exposures beyond the ones described in the 2018 Annual Report. Multiconsult is exposed to a number of risk factors: legal liability, credit risk, currency risk, interest rate risk, liquidity risk, and accounting estimates risk. The Risk and Risk Management section in the 2018 Annual Report contains detailed description and mitigating actions.

DEFINITIONS

Net operating revenues: Operating revenues less sub consultants and disbursements.

EBIT: Earnings before net financial items, results from associates and joint ventures and income tax.

EBIT margin (%): EBIT as a percentage of net operating revenues.

EBITDA: EBIT before depreciation, amortisation and impairment.

EBITDA margin (%): EBITDA as a percentage of net operating revenues.

Operating expenses: Employee benefit expenses plus other operating expenses.

Net interest bearing debt: Non-current and current interest bearing liabilities deducted cash and cash equivalents.

Order intake: Expected operating revenues on new contracts and confirmed changes to existing contracts. Only group external contracts are included.

Order Backlog: Expected remaining operating revenues on new and existing contracts. Only group external contracts are included. Call-offs on frame agreements are included in the order backlog when signed.

Billing ratio (%): Hours recorded on chargeable projects as a percentage of total hours worked (including administrative staff) and employer-paid absence. Billing ratio per segment includes allocated administrative staff.

Employees: Number of employees comprise all staff on payroll including staff on temporarily leave (paid and unpaid), excluding temporary personnel.

DISCLAIMER

This report 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 notice, 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 forwardlooking statements are made only as of the date of this notice, and we do not intend and do not assume any obligation to update any statements set forth in this report.

RESPONSIBILITY STATEMENT

We confirm to the best of our knowledge that the condensed set of financial statements for the period 1 January to 30 June 2019 have been prepared in accordance with IAS 34 - Interim Financial Reporting, and gives a true and fair view of the Multiconsult group's assets, liabilities, financial position and result for the period. We also confirm to the best of our

knowledge that the financial review includes a fair review of important events that have occurred during the financial year and their impact on the financial statements, any major related parties transactions, and a description of the principal risks and uncertainties.

Oslo, 28 August 2019 The Board of Directors and CEO Multiconsult ASA

Bård Mikkelsen Simen Lieungh Hilde Hammervold Hanne Rønneberg Rikard Appelgren Chairman Board member Board member Board member Board member

Runar Tyssebotn Liv-Kristine Rud Kristine Landsnes Augustson Grethe Bergly Board member Board member Board member CEO

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited for the period ended 30 June 2019

INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME

Amounts in TNOK, except EPS	Q2 2019	Q2 2018	H1 2019	H1 2018	FY 2018
Operating revenues	1 042 304	1 028 033	2 152 489	2 050 012	3 908 638
Expenses for sub consultants and disbursements	175 601	140 459	341 543	303 349	573 791
Net operating revenues	866 703	887 573	1 810 946	1 746 663	3 334 848

Employee benefit expenses	700 114	660 507	1 391 012	1 323 933	2 539 494
Other operating expenses	135 218	165 791	250 267	313 007	646 221
Operating expenses excl. depreciation and amortisation	835 333	826 298	1 641 280	1 636 940	3 185 715

Operating profit before depreciation and amortisation (EBITDA)	31 370	61 275	169 666	109 723	149 133
Depreciation and amortisation	47 300	12 381	93 126	24 719	50 130
Operating profit (EBIT)	(15 930)	48 895	76 540	85 004	99 003

Results from associated companies and joint ventures	275	148	(400)	300	1 661

Financial income	316	2 858	783	3 780	7 718
Financial expenses	13 494	3 789	28 837	7 096	18 297
Net financial items	(13 177)	(932)	(28 055)	(3 316)	(10 579)

Profit before tax	(28 832)	48 111	48 085	81 988	90 085
Income tax expense	(7 012)	11 075	10 948	19 677	26 528
Profit for the period	(21 820)	37 036	37 138	62 310	63 557

Attributable to:
Owners of Multiconsult ASA	(21 820)	37 036	37 138	62 310	63 557

Earnings per share
Basic and diluted (NOK)	(0.81)	1.37	1.38	2.31	2.36

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Amounts in TNOK	Q2 2019	Q2 2018	H1 2019	H1 2018	FY 2018
Profit for the period	(21 820)	37 036	37 138	62 310	63 557
Other comprehensive income
Remeasurment of defined benefit obligations	-	-	-	-	809
Tax	-	-	-	-	(178)
Total items that will not be reclassified to profit or loss	-	-	-	-	631
Currency translation differences	(731)	(1 275)	(7 337)	(12 884)	(2 462)
Total items that may be reclassified subsequently to profit or loss	(731)	(1 275)	(7 337)	(12 884)	(2 462)
Total other comprehensive income for the period	(731)	(1 275)	(7 337)	(12 884)	(1 831)
Total comprehensive income for the period	(22 551)	35 761	29 800	49 426	61 726
Attributable to:
Owners of Multiconsult ASA	(22 551)	35 761	29 800	49 426	61 726

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

Amounts in TNOK	At 30 June 2019	At 31 March 2019	At 31 December 2018
ASSETS
Non-current assets
Deferred tax assets	42 483	39 794	44 712
Intangible assets	31 592	27 359	28 228
Goodwill	445 703	446 010	449 049
Property, plant and equipment	112 215	111 558	102 491
Right-of-use assets	965 405	996 495	-
Associated companies and joint ventures	12 011	11 725	12 489
Non-current receivables and shares	5 717	4 055	7 352
Assets for reimbursement of provisions	10 900	20 600	23 300
Total non-current assets	1 626 027	1 657 595	667 621

Current assets
Trade receivables	609 948	534 477	666 756
Work in progress	445 374	573 100	343 863
Other receivables and prepaid costs	74 863	97 109	72 854
Cash and cash equivalents	31 403	48 781	138 872
Total current assets	1 161 588	1 253 467	1 222 346
Total assets	2 787 615	2 911 062	1 889 966

EQUITY AND LIABILITIES
Shareholders' equity
Total paid in equity	91 242	91 242	91 242
Other equity	491 290	554 318	501 969
Total shareholders' equity	582 532	645 560	593 211

Non-current liabilities
Retirement benefit obligations	6 175	6 172	6 500
Deferred tax	9 729	7 041	12 822
Provisions	18 450	39 350	42 350
Non-current interest bearing liabilities	172 000	173 307	175 255
Non current lease liabilities	853 321	882 667	-
Total non-current liabilities	1 059 675	1 108 537	236 927

Current liabilities
Trade payables	152 995	214 653	236 492
Prepayments	119 271	108 579	138 411
Current tax liabilities	29 932	33 411	32 340
VAT and other public taxes and duties payables	303 529	267 234	327 167
Current interest bearing liabilities	27 325	62 033	23 162
Current lease liabilities	120 068	118 060	-
Other current liabilities	392 289	353 004	302 257
Total current liabilities	1 145 409	1 156 962	1 059 830
Total liabilities	2 205 083	2 265 499	1 296 756

Total equity and liabilities	2 787 615	2 911 062	1 889 966

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Amounts in TNOK	Share capital	Own shares	Share premium	Total paid-in capital	Retained earnings	Pension	Currency	Total equity

31 December 2017	13 486	-	77 758	91 242	680 377	(202 342)	12 794	582 072
Dividend	-	-	-	-	(40 456)	-	-	(40 456)
Treasury shares	-	-	-	-	4	-	-	4
Employee share purchase programme	-	-	-	-	(121)	-	-	(121)
Comprehensive income	-	-	-	-	62 310	-	(12 884)	49 426
30 June 2018	13 486	-	77 758	91 242	702 116	(202 343)	(90)	590 925

31 December 2017	13 486	-	77 758	91 242	680 377	(202 342)	12 794	582 072
Dividend	-	-	-	-	(40 423)	-	-	(40 423)
Treasury shares	-	-	-	-	4	-	-	4
Employee share purchase programme	-	-	-	-	(10 168)	-	-	(10 168)
Comprehensive income	-	-	-	-	63 557	631	(2 462)	61 726
31 December 2018	13 486	-	77 758	91 242	693 347	(201 712)	10 332	593 211
Dividend	-	-	-	-	(40 456)	-	-	(40 456)
Share Issue	-	-	-	-	-	-	-	-
Treasury shares	-	-	-	-	-	-	-	-
Employee share purchase programme	-	-	-	-	(18)	-	-	(18)
Comprehensive income	-	-	-	-	37 138	-	(7 337)	29 800
30 June 2019	13 486	-	77 758	91 242	690 011	(201 712)	2 995	582 532

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

Amounts in TNOK	Q2 2019	Q2 2018	H1 2019	H1 2018	FY 2018
Cash flows from operating activities
Profit before tax	(28 832)	48 111	48 085	81 988	90 085
Interest lease liability	9 493	-	19 027	-	-
Income taxes paid	(8 830)	(3 016)	(22 342)	(9 923)	(24 773)
Depreciation, amortization and impairment	12 555	12 381	24 649	24 719	50 130
Depreciation right-of-use asset	34 706	-	68 477	-	-
Results from associated companies and joint ventures	275	(148)	(400)	(300)	(1 661)
Other non-cash profit and loss items	(7)	-	(7)	-	993
Sub total operating activities	19 361	57 327	137 446	96 484	114 774
Trade Payables	(61 658)	20 303	(83 497)	9 817	(3 228)
Trade receivables	(75 471)	(3 376)	56 808	(15 654)	(78 379)
Work in progress	127 726	(41 945)	(101 511)	(148 296)	24 584
Other	97 313	22 101	33 741	14 173	150 143
Changes in working capital	87 910	(2 917)	(94 460)	(139 962)	93 120
Net cash flow from operating activities	107 271	54 410	42 987	(43 478)	207 893

Cash flows from investment activities
Net purchase and sale of fixed assets and financial non-current assets	(11 267)	(12 821)	(39 498)	(27 399)	(61 199)
Net cash flow used in investment activities	(11 267)	(12 821)	(39 498)	(27 399)	(61 199)

Cash flows from financing activities
Change in interest-bearing liabilities	(33 604)	(22 677)	3 319	95 307	(90 360)
Lease liability payments	(39 841)	-	(72 958)	-	-
Paid dividends	(40 456)	(40 456)	(40 456)	(40 456)	(40 423)
Sale treasury shares	27	-	27	585	13 496
Purchase treasury shares	(139)	(737)	(139)	(737)	(43 841)
Net cash flow from financing activities	(114 012)	(63 870)	(110 207)	54 700	(161 127)

Foreign currency effects on cash and cash equivalents	632	2 788	(751)	(5 886)	(987)

Net increase/decrease in cash and cash equivalents	(17 377)	(19 494)	(107 469)	(22 064)	(15 419)
Cash and cash equivalents at the beginning of the period	48 781	151 721	138 872	154 291	154 291
Cash and cash equivalents at the end of the period	31 403	132 227	31 403	132 227	138 872

NOTES TO THE FINANCIAL STATEMENTS

Note 1: General information

The Company and the Group

Multiconsult ASA (the company) is a Norwegian public limited liability company listed on Oslo Børs. The company and its subsidiaries (together the Multiconsult group/the group) are

Note 2: Basis of preparation and statements

Basis for preparation

The financial statements are presented in NOK, rounded to the nearest thousand, unless otherwise stated. As a result of rounding adjustments, the figures in one or more rows or columns included in the financial statements and notes may not add up to the total of that row or column.

Statements

These interim condensed consolidated financial statements for the second quarter of 2019 have been prepared in accordance with IAS 34 as approved by the EU. They have not been audited. among the leading suppliers of consultancy and design services in Norway and the Nordic region. The group has subsidiaries outside the Nordic region in Poland, UK and Singapore.

They do not include all of the information required for full annual financial statements of the group and should be read in conjunction with the consolidated financial statements for 2018. The accounting policies applied are consistent with those applied and described in the consolidated annual financial statements for 2018, which are available upon request from the company's registered office at Nedre Skøyen vei 2, 0276 Oslo and at www.multiconsult.no.

These interim condensed consolidated financial statements for the second quarter of 2019 were approved by the Board of Directors and the CEO on 28 August 2019.

Note 3: Accounting policies

The group prepares its consolidated annual financial statements in accordance with IFRS as adopted by the EU (International Financial Reporting Standards - IFRS). References to IFRS in these financial statements refer to IFRS as approved by the EU. The accounting policies adopted are consistent with those of the previous financial year.

The group implemented IFRS 16 on 1 January 2019 using the modified retrospective approach. Comparative information will not be restated. For more details of the effects in the financial statements see note 13.

Note 4: Estimates, judgments and assumptions

The preparation of interim condensed consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these interim condensed consolidated financial

statements, significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the annual consolidated financial statements for 2018 (see especially note 2).

Note 5: Segments

Refer to note 5 to the consolidated annual financial statements for 2018 for more information on the segments.

The group has three geographical reporting segments as well as a segment for LINK arkitektur. Revenues and expenses are

reported in the segment with reference to where the employee is employed. The cost of administrative services, rent of premises, depreciation and so forth is allocated to the segments.

Q2 2019	Greater	Regions	Inter	LINK	Not	Elimi
Amounts in TNOK	Oslo Area	Norway	national	arkitektur	allocated	nations	Total
External revenues	455 034	325 615	86 213	169 070	6 373	-	1 042 305
Internal revenues	(828)	129	4 985	1 485	(14 589)	8 817	-
Total operating revenues	454 206	325 744	91 198	170 555	(8 215)	8 817	1 042 304
Net operating revenues	359 709	295 392	61 618	141 327	(15 053)	23 711	866 703
Operating expenses	378 345	262 544	49 844	128 139	(6 902)	23 363	835 333
EBITDA	(18 637)	32 848	11 775	13 188	(8 151)	348	31 370
Depreciation, amortisation, impairment	10 285	18 815	3 201	6 439	8 981	(419)	47 300
EBIT	(28 921)	14 033	8 574	6 749	(17 132)	767	(15 930)
Associates and joint ventures	275	-	-	-	-	-	275

Receivables 1)	441 589	290 812	136 115	228 874	-	(42 069)	1 055 321
Number of employees	1 179	857	310	500	118	-	2 964