AF Gruppen – 4th quarter 2013 February 14th 2014

Q4 2013 Summary

Record result • Revenues Q4:

MNOK 2,508 (2,709)

2013: MNOK 10,127 (9,830)

• Earnings before tax Q4:

MNOK 213 (116)

2013: MNOK 580 (317)

• Cash flow from operations Q4:

MNOK

545 (226)

Helsehuset, Fredrikstad

2013: MNOK 1,031 (194)

• Earnings per share 2013:

NOK 5.26 (2.40)

• Dividend proposal 2013:

NOK 6.00 (4.50)

• Order backlog MNOK 10,976 (9,074)

• 12 month share price perf.(total return) AFG: +28.4 % (OSEBX: +23.6 %)

NOK million

Q4 2013

Q4 2012

2013

2012

Revenues

2,508

2,709

10,127

9,830

EBIT

202

120

568

325

EBT

213

116

580

318

EBIT %

8.0 %

4.4 %

5.6 %

3.3 %

EBT %

8.5 %

4.3 %

5.7 %

3.2 %

Revenues

NOK million

NOK million

3 000

12 000

2 500

10 000

2 000

8 000

1 500

6 000

1 000

4 000

500

2 000

0

0

10 127

2009

2010 Q1

2011 Q2

Q3

2012 Q4

2013

2009

2010

2011

2012

2013

Omsetning

3

Earnings before tax

NOK million

NOK million

250

580

600 213

500

200

400

150

300 100 200 50

100

0

0 2009

2010 Q1

2011 Q2

Q3

2012 Q4

2013

2009

2010

2011

2012

2013

Resultat før skatt

4

Return on capital employed 12 month rolling average

50% 45,7 % 40%

30%

20%

*

10%

0% 2009

2010

2011

*AF’s target is to achieve a return on capital employed above 20 %.

2012

2013 5

Cash flow statement Cash flow statement Q4 2013

Q4 2012

2013

2012

202

120

568

325

29

29

110

106

Change in net working capital

345

110

452

-117

Other adjustments / taxes paid

-37

-33

-115

-120

Cash flow from operations

529

226

1,015

194

Net investments

-10

-74

-107

-85

15

30

-365

-345

-12

-2

-9

-4

522

179

534

-240

3

-1

14

-5

525

178

547

-245

NOK million EBIT Depreciations, amortization and impairment

Cash flow from capital activities Cash effect from net financial items Net cash flow* Change in net interest bearing receivables without cash effect Change in net interest bearing receivables

* Cash flow before change in net interest bearing receivables 6

Net interest bearing receivables Development last 3 years

NOK million 800

751

600

400

200

0

-4

-2

-200

Net interest bearing receivables as of 31 December is NOK 751 million (204). 7

Balance sheet

NOK million

31.12.2013

31.12.2012

Non-current assets

2,131

1,937

Current assets, ex. Cash

2,410

2,660

695

322

Total assets

5,237

4,919

Equity

1,334

1,202

Long term debt

483

589

Short term debt

3,419

3,128

Total equity and debt

5,237

4,919

Cash and cash equivalents

8

Equity ratio 2009 - 2013

40%

30% 25,5 %

20%

10%

0% 2009

2010

2011

2012

2013 9

Health, safety and the environment Lost time to injuries and sick leave

LTI rate*

Sick leave

4

6%

3

3,7%

4% 2

1,4 2% 1

0

0% 2009

2010

2011

2012

2013

2009

2010

2011

2012

2013

*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. For 2009 the LTI rate only includes the Norwegian part of the AF Group.

10

Recent survey shows AF Gruppen has very satisfied employees AF

EEI B&A Norway Benchmark

EEI B&A Sweden Benchmark

«Top in class»

81

80

80+ 76

75 72

75+

74

74

71 68

Total satisfaction with AF as employer

Job satisfaction

Affiliation PRESENTASJON

Business areas

1 2

Civil Engineering High activity and very good performance • Very good operations and high activity level in AF Anlegg in Q4 and in 2013 as a whole. • Low activity level and weak results in the Swedish unit, Pålplintar. • Start-up on projects Nyhamna and Solbakk tunnel during the quarter. • High activity level on several large projects, like E6 Frya-Vinstra, Ringveg Vest og Pir Nord at Oslo airport.

Pir Nord, Oslo airport

NOK million

Q4 2013

Q4 2012

2013

2012

794

707

2,950

2,622

EBIT

79

43

253

83

EBT

84

45

265

92

EBIT%

9.9 %

6.1 %

8.6 %

3.2 %

EBT%

10.6 %

6.3 %

9.0 %

3.5 %

Revenues

• Total order backlog as of December NOK 4,604 million (2,232)

31st:

13

Environment Strong quarter • High activity level and good performance in Norway. • High activity level at the Follum factories project. • Activity in Sweden still lower than expected. • The integration of Härnösand Byggreturer has started and the company shows positive development. • Total order backlog as of December 31st: NOK 215 million (231)

Follum factories

NOK million

Q4 2013

Q4 2012

2013

2012

204

198

684

649

EBIT

21

26

40

72

EBT

19

26

38

71

EBIT%

10,1 %

13,3 %

5,8 %

11,1 %

EBT%

9,4 %

13,0 %

5,5 %

11,0 %

Revenues

14

Building Positive margin development • Good results in AF Bygg Oslo. • AF Byggfornyelse has implemented initiatives to improve operations. • High activity level, good operations and good results in AF Bygg Østfold. • Strøm Gundersen delivers good results and increasing activity. • Positive development in AF Bygg Rogaland and AF Bygg Göteborg. • AF Bygg Sør has low activity and weak results. Organisational adjustments are expected to improve operations. • Four substantial agreements signed in Q4. Total contract value approx. NOK 823 million.

Borge lower secondary school

NOK million

Q4 2013

Q4 2012

2013

2012

Revenues

1,184

1,418

4,793

5,348

EBIT

52

5

169

60

EBT

51

2

160

47

EBIT%

4.4 %

0.3 %

3.5 %

1.1 %

EBT%

4.3 %

0.1 %

3.3 %

0.9 %

• Total order backlog as of December 31st:

NOK 4,760 million (4,368)

15

Property Selective residential market • 29 apartments were sold in Q4. AF’s share is 10. • I 2013 99 housing units were sold. AF’s share is 45. • AF has 3 (13) completed unsold housing units. Ringveg Vest Kilen Panorama

• The building of the apartment project Kilen Panorama was started in Q4. • The apartment project Krydderhagen at Hasle in Oslo has experienced good sales and it is expected to be started during Q1 2014. • AF owns land and development rights in progress which amounts to 1,082 (945) residential units.

NOK million

Q4 2013

Q4 2012

2013

2012

Revenues

19

4

60

30

EBIT

22

15

32

38

EBT

25

13

30

31

EBIT%

115,8 %

403,2 %

53,4 %

127,0 %

EBT%

131,9 %

354,4 %

49,0 %

104,1 %

16

Energy Nytt bilde kommer

Good operations • Steady activity level and satisfactory results for Q4 and 2013 in AF Energi & Miljøteknikk (EMT). • Three EPC-contracts signed during 4th quarter. • After Q4, EMT signed an agreement with Hammerfest Energi Varme AS to build an energy central. Contract value approx. NOK 16 million. • Total EPC contracts are expected to yield an activity of approx. NOK 145 million in addition to existing order backlog. • Total order backlog as of December NOK 59 million (106)

31st:

Asker kulturhus

NOK million

Q4 2013

Q4 2012

2013

2012

55

58

173

163

EBIT

4

7

11

15

EBT

5

7

12

16

EBIT%

8.0 %

12.1 %

6.5 %

9.3 %

EBT%

8.3 %

12.7 %

6.8 %

9.6 %

Revenues

17

Offshore Good quarterly result • AF Decom Offshore delivers very good results in Q4. • Good operations at M&M Onshore Facilities, both in Q4 and throughout 2013. • Aeron has delivered weak results in Q4 and 2013. Organisational adjustments have been carried out. • Mollier and subsidiaries AF Offshore Mandal og 5D Group experienced varying activity levels in Q4.

Seismic Research Vessel, Western Geco

NOK million

Q4 2013

Q4 2012

2013

2012

253

337

1,480

1,129

EBIT

21

24

70

76

EBT

21

24

71

78

EBIT%

8.3 %

7.1 %

4.7 %

6.8 %

EBT%

8.1 %

7.2 %

4.8 %

6.9 %

Revenues

• Mollier has been awarded a new framework agreement with ConocoPhillips after quarter-end. Contract period is 4.5 years with an option for ConocoPhillips to extend by 3+3 years. • Total order backlog as of December 31st: NOK 1,265 million (2,028)

18

Order backlog development Q4 2009 – 2013 NOK million

12 000

10 976

10 000

2015  8 000

6 000

4 000

2014 2 000

0 Q4 2009

Q4 2010

Q4 2011

Q4 2012

Q4 2013 19

AF Gruppen’s property campaign

20

AF offers a range of services to the property industry

Property development

Demolition

Foundation / infrastructure

New building

Rehabilitation

Energy services

As a property developer, AF Gruppen has two purposes

• Cooperation based on fair competition and commercial terms for both parties. • Own account projects shall constitute 10-30 % of AF Bygg’s revenues

• Seeks solely projects that meets AF’s profitability requirements.

Increase value creation AF’s property business shall: • Be a leading partner-based property developer, which in cooperation with AF’s building operations, creates additional profits on own invested capital and for its partners. • Develop a building site inventory that supports the building operation’s growth ambitions. • Secure more frequent start-ups of profitable property projects in cooperation with AF’s building operations.

23

We seek to strengthen the building site inventory, while reducing portfolio ownership from 45 % to 30 % Our property business is established in regions where AF has building activities:

Development in building site inventory M2 BRA-S

350 000

 Greater Oslo area

300 000

 Drammen

250 000

 Østfold

200 000

 Kristiansand

150 000

 Rogaland

100 000

 Gothenburg

50 % 45 %

30 %

50 000 0 2012 Residential

Why partnerships?:  Gives broader access to projects  optimizes capital investments

2013

2014

Bolig Næring Non-residential

2015

2016

AF’s portfolio ownership

Market outlook summary Civil Engineering

Environment

 The market is characterised by large infrastructure projects.  Investment level within civil engineering is expected to grow from a high level.

 Stable good demand for land-based demolition services.  Strong correlation with the activity level in building, construction and infrastructure.

Building

 Improved market for non-residential and public building. Building renovation market sable and good.  Expectant residential market, but signals of increasing housing starts.

Property

 The residential market shows moderate positive signs at the beginning of 2014, after a period of slowing project sales.  Moderate increase in price level expected in 2014.

Energy  Increasing demand for energy services.  Increased level of EPC-contracts (Energy Performance Contracts). Offshore

 Good market for offshore related services.  The Maintenace & Modification market is expected to flatten at high level.  Positive outlook for marine HVAC services. 25

Thank you for your attention!

Krydderhagen