AF Gruppen ASA

And a warm welcome to the presentation of the fourth quarter for the AF Group in 2021. The theme today is the business area energy and environment and will be presented to the board of directors Eirik Vrold. We start with the high points in the quarter, and here the revenue ended before the quarter at 8.1 billion, and last year at 27.8 billion. The result for tax was 635 million in the fourth quarter, and that gave a result margin of 7.8%, and we ended at 5.7% last year. The cash flow from drift was at 300 million, and the order reserve is at 38.6 billion per 31.12. Net and interest rates are at 29 million per 31.12, and the result per share for 2021 was 9.60 kroner per share. The board proposes an exchange rate of 6.50 kroner per share for payment in the first half year. At AF, we start with safety and HMS first. You can see our overarching goals here. The most important goal for our safety management is the HN value, which says the number of incidents that lead to emergency and serious personal injuries without emergency per million executed hours. Unlike many others, we and our sub-entrepreneurs are included in our numbers, and that is because in AF, everyone is worth as much. If we look at the quarter, we have had five events in the quarter that have given a H1 value in the quarter at 0.9, and if we look at the year under 1, we have had 22 events that have given a H1 value at 1.1, which is a strong improvement from last year. Our goal is zero, and the safety is fresh goods, but we are still very pleased with the trend we are in here. Likewise, the H2 value collected this year has dropped to 8.3 from 10.0. On the other hand, health care ended up at 4.9 percent in the quarter, which is accumulated for the year 4.6 percent. And we are not satisfied with that. If we go back to the results for the quarter, we see that we have had a turnover growth of over 8.4 percent to 8.1 billion, and the results before the tax ended at 635 million from last year. This gives a result margin of 7.8 percent, which we consider to be a very good result. Discount on invested capital is another important target parameter at ØCAF. If we start from the left, we see that the invested capital, which is now average, is close to 4.5 billion, and the result before tax, if we put back the interest rates, is 1.6 billion. This gives a discount on invested capital of 36%, which is well above our target of 20%. If we look at the electricity bill, we had 301 million kroner in electricity bills in the fourth quarter, and up to 226 million kroner this year, up to 1,415 million kroner this year. The current liquid funds are at 680 million, and when we then move on to the net and interest rate projections, you will find that the 680 million to the right under liquid funds And if we add up the net costs and rental obligations and the house rental obligations we have, we end up with net interest-bearing costs of 29 million. And in addition to a draw facility of 3 billion, we have available liquidity of over 3.6 billion. And we mean, so to speak, that we are in a solid financial position. Moving on to the balance sheet, there are no significant differences from last year. The equity has strengthened further and is now right at the top at 3.5 billion. And we have an equity share of 27.3%. AF has a responsibility for the impact we have on the climate and the environment with our business. Therefore, it is especially enjoyable to see that we have source sorted over 295,000 tons in 2021, with a sorting rate of approximately 90 and 96 percent, which is far exceeding the authority requirement of 60 percent. We have ripped and sorted metal for recycling and recycling from our environmental parks at 55 and over 344,000 tons, which together has contributed to over 80,000 tons of CO2 equivalents saved for society and the climate. If we take a look under the umbrella at our business areas in the fourth quarter, we start with facilities. The revenue turnover is 1.5 billion, and a strong boost to the operating results to 221 million, which gives a operating margin of a solid 14.5% in the quarter. If we look at last year's total, the turnover ended at 6 billion, and we have surpassed the mark of 500 million, and the operating results ended at 515 million, which gives a operating margin of 8.6%. There is good operation in all units, and we are drawing very good results in measuring machines and transport, and AF facilities in particular. Here we see a picture from one of the projects, the crossing to Trystfjorden, where you can see that the bridge buildings have soon come together and can cross over Trystfjorden. Furthermore, it is also happy that Eikon and Konsolvo deliver revenue growth and good profitability in this quarter. Our reserve in facilities is 6.8 billion, but we have had a fine contract with Statkraft in Nershedammen in Tyrdal, and then there are perhaps many who have learned that in this district here, And after the end of the quarter, we have signed a contract with the municipality of Oslo on the construction of rainwater tunnels in Oslo. And that is a record in the AF Group so far in terms of size, and that is 8.75 billion, and is a working partnership with Gela. And so far, I am not worried about the order reserve in facilities in the future. If we move on to construction, there is some weaker profitability in this quarter. The turnover increased by over 25 percent and ended at 2.8 billion, while the operating results are stable at 154 million. This gives a operating margin of 5.4 percent, which is down from last year. Haga Berg, AF Bygg Oslo and Strøm Gunnarsen are outstanding with very good results in this quarter. It is thus happy that Haga Berg has entered a record-high contract for judgment with SEF Holding on rehabilitation at Kjølberggata 31 on Tøyen. Furthermore, Both AF Bygg Østfold and Åsane Byggmesterforretning in Bergen deliver good results this quarter. Unfortunately, we have further underestimated Nybygg Portefølgen this quarter, and we have, as previously stated, transferred them to AF Bygg Oslo, which will continue to work on these projects. Price development in raw materials, we have been talking about for several reasons, and you are well aware of that, and it is still challenging in some projects in our business around the world. The oil reserve is 13.5 billion for construction, and it is up about 4 billion from last year. Moving on to the concrete mast, the turnover there was over 2 billion in the quarter, and the operating results down from 20 million to 68 million, which gives a operating margin of 3.3%. Last year, the turnover was slightly over 7.1 billion, with a operating margin of 2.4%. That is for weak profitability, but it is also important to emphasize that there is a lot of variation, and there are also good results in concrete masonry. We can bring forward several projects, for example Lillehammer fire station, as you can see here, Betongmast Innlandet has delivered on Lillehammer. I also want to highlight the safety work in Betongmast. We are not far back in time, before the HN value in Betongmast was 4.8. Before 2021 it was 1.0 and it was 0 in the fourth quarter. We will also bring good results from Betongmast Oslo, Romerike, Østfold, Trøndelag and Buskerud Vestfold, who deliver good results this quarter with good operations and several good conclusions on the projects. On the other hand, we have housing construction and telemark, where we have made further reductions in this quarter, and we have decided to sell Betongmast Telemark after the end of the quarter. Betongmast Sverige has delivered weak profitability in this quarter, and as mentioned earlier today, the AF Group has purchased Betongmast's Swedish business, and we will carry out the purchase in the course of the first quarter. In the future, Betongmast Sverige will be included in the Swedish business area in our further reporting. We do this to strengthen the foundation for further profitable growth. Our reserve in concrete mass is up from 7.2 to 11.4 billion. Moving on to property, property has had a good sale in the fourth quarter, especially at Bekkestua Havet and Rolfsruh Sports Park, which you can see a nice picture of here. There have been 135 tenants in the quarter and the share is 60. There was a operating profit of 32 million in this quarter against 95 in last year, but then we sold Athea bygge in the fourth quarter. We have seven housing projects with 848 units under production, and we consider the sales rate of 83% to be good. Our development portfolio on property is 1,715 units on housing, and we have right to the bottom and 52,000 BTA on food on a 100% basis. If we go over to Sweden, they have strengthened their turnover and are at 1.3 billion, with a strong operating result of 125 million, which gives a operating margin of 9.6% per quarter. And they also deliver a margin of 6.1% per year of 4.3 billion, which is the average in the AF. It is happy to mention the Canonade in particular, but also HMB and AF Ørnesand building tours in this quarter, which deliver very good results and have good operations in their business. From AF Bygg Syd, they have experienced some challenges in one project and have low profitability in this quarter. And I talked about cement in the last quarter. And there they have had a medium-term tendency to extract lime longer in Gotland, so we see the risk as a damper at the present time. In the quarter, we have listed five agreements with a total value of over 740 million, which gives Norway a reserve of over 4.7 billion in Sweden. Energy and Environment has a turnover of 312 million kroner and an operating profit of 52 million kroner in this quarter, which gives a very good margin of 16.7 percent. And if we look at the year in a row, it has contributed with over 100 million kroner in operating profit and an operating margin of 9.4 percent. And it is very happy that both AF Dekom and AF Energi deliver very good results in this quarter. Now Eirik will come to talk more about this business area in his presentation. But I would now like to conclude by saying that when this business can contribute so positively to the footprint of the AF Group, and in addition with a operating margin of close to 17%, then it is allowed to smile. The smile continues when I take the numbers to offshore. With 225 million and a operating result of 40, offshore delivers a operating margin of 17.6% this quarter. This year, there is a turnover of close to 850 million and a operating margin of 9.8%. And here is Offshore Dekom, which is the driver with high activity and very good profitability on their operations, both on Watts, but also on what they do out in the lake, on successful and good offshore campaigns. Aeron Moliere has reported a lower turnover compared to the summer of last year, but has managed to report its results in the quarter. And the order reserve for this year is 1.5 billion. If we look at the annual reserve, there is Bygg with 13.5 billion, which has the largest annual reserve, Betongmast with 11.4 billion, Anlegg with 6.8 billion and Sverige with 4.7 billion, which are the four largest. Collected for the entire company, the order reserve is 38.6 billion. Strongly up from the response last year, slightly down from the third quarter. But as I mentioned earlier, there have been signed contracts this week, which means that we are not worried about the order reserve in AF. We consider it to be solid and good. Turning challenges into opportunities and implementing them is part of AF's DNA. I think this presentation and the theme we present today is a great example in that way. Please, Eirik, present the business area of energy and the environment.

My name is Eirik, and thanks for the introduction, Amund. I am the head of the business area Energy and Environment, and I am looking forward to telling the press a little about us today. AF offers energy-efficient solutions for the construction industry, and is a leading actor in environmental conservation, mining and reconstruction. Energy and the environment increased the activity level, as we heard, and delivered a good result in the quarter. Seen for the first years, the turnover increased by about 20%, with a operating margin of 9.4%, compared to 5.6% in 2020. The order reserve is at a robust 714 million. The AF Group will be in charge of creating socially beneficial business opportunities that will help solve our time, environment and social challenges. The energy and environment business area is far ahead of the starting line, precisely because we can already prove that we have solved social challenges in a year. The companies aim to solve two main challenges. The world needs new energy sources, and we must manage natural resources in a better way than we have done so far, where reuse and recycling are an essential part of the solution. In recent months, most of us have felt high electricity prices. Access to energy is not a new challenge. The picture you see here is from Oslo in Hausmannsgatet, where the city's first parallel power cables were installed at the end of the 18th century. The price at that time was also high. It was 75 euros per kilowatt hour. If the electricity price had fully increased, a kilowatt hour today would cost about 50 kroner. 50 kroner corresponds to about 350,000 per person in a normal consumption, or 760,000 for a single household. The challenge is that we use more and more things that run on electricity. New types of devices, land power, new electric buses, and an explosive number of electric cars. Should you avoid Enorme kostnader. Videre må man enten endre forebruksmønstre eller se på muligheter for å bruke strømmen litt smartere. Her mener vi at vi har fagkompetansen som vil komme mer og mer til nytte i tiden som kommer. Gjennom energieffektive, fornybare og miljøvende løsninger har AF energy-efficient over 2 million square meters of building mass in public buildings, and contribute to producing energy equivalent to the consumption of 15,000 homes. We use local energy sources such as mountain heat, seawater, cloaca, solar energy, and contribute to energy savings of 27 million kilowatts annually, equivalent to the consumption of over 1,000 homes. The projects have also provided valuable consumer data, which ensures that we can guarantee price savings, even before we sign a contract with the customer. For some time now, the EU introduced the European Green Deal. This is the EU's growth strategy for making Europe the first climate-neutral region in the world by 2050. One of the main goals is to lift the worst building mass to become more energy efficient. As one of the contributions to decarbonization by 2050. Not by accident, buildings are the largest single-use energy consumers in Europe and use about 40% of all the energy that is created. The Norwegian Parliament has asked the government to work out a plan for energy efficiency for about 10 terawatt hours in buildings, to free energy to phase out fossil energy sources, among other things, in the industry. Two completely new studies show the potential for energy savings by energy renovation of farmland and fields for a total of 9 terawatt hours by 2030. This means that the housing authorities have the potential to almost meet the entire parliament's goal of a 10 terawatt hour reduction by 2030. In this picture, we see Sara at the steam quarter at Myrvold in Oppegård. This project fills the need for heat and groundwater for 172 apartments, where energy burns are used as a source of heat. AFEnergi helps our customers reduce energy consumption, establish local energy production, and optimize operations. We focus on measures and solutions that provide profitability for the customer, but also for the environment. AFE also strengthens our commitment to self-sufficiency in technical subjects under electrical and pipe, so that we can attract larger enterprises. We are in the delivery phase of the internal technical and construction work on the expansion of the Nånen Scheng terminal at Gardermoen. Aave is also starting a new energy center and cooling system for a new clinic and proton building at Radiohospitalet, and a new heating and cooling system for the project's new hospital. After that, we will carry out the pipeline work on Norway's largest university building, Livsvitenskapsbygget, after an end-to-end phase. In addition, AF Energi has dedicated resources for project development. Here we carry out pre-projects that will result in good projects for us and our customers. We operate the entire life cycle from possibility studies via technical enterprises and rehabilitation to operation and service, and thus control the entire service spectrum in a growing energy market. The road to becoming climate neutral is about efficiency, but of course also about upgrading the power grid. I think there will be many projects in the future. The planned upgrade of the main power grid in Norway- means the construction of new masts and ledges- that require the rearranged grid to be sanded and removed. As part of this upgrade, AFD has recently repaired the mountain range. In the picture, you can see the 53 km long line- that stretched from Lysebotten over Høyfjell towards Hundalen- and down through Sirdal to Trondstad, and further to Solholm in Agder. Together with the state network, we have been concerned about the footprint of our data, and that it should not be larger than necessary. We therefore used specially adapted loads for download of the power line, which made it possible to carry out the project in a pleasant way for the surroundings around us. All power plants, management and foundations are now source sorted and sent to recycling. AF's drilling company performs a large variety of projects, where we sort different materials for recycling. Here at Svea in Svalbard, we have recently completed what we call Norway's largest drilling work. More than 100 years of mining history has now been removed. Beautiful. The environmental project went on to remove all traces of human activity in the area. Here under construction, infrastructure, roads, fuel stations, power stations and a new airport. AMEN was a little impotent at the time, but AFD-KOM has in 2021 managed to recover almost 15,000 tons of metal. The steel industry accounts for approximately 7% of the world's CO2 emissions. Reuse of steel from our projects has 70% less emissions than CO2 from Malmö-based steel production. Aaf's Riva environment company alone contributes to reducing the alternative to CO2 emissions by almost 15,000 tons in 2021. proper competence and implementation to ensure good environmental performance in our projects. But we also work dedicated to managing natural resources in a better way. For our environmental park, the ambition is that all the materials we receive will be recycled and used as a new product. We refer to it as the Pantautomat of the big city. Today, we recycle almost 80% of everything that is delivered, and we are talking about large volumes. The products we create represent the raw materials in the products of the future. Sand is now used by the municipalities of the country, and in 2020, the first meters of asphalt with recycled products were laid. We also said last year that we had ambitions to do the same with concrete. Research on climate-friendly concrete has been on our agenda for a long time. This is because we have the most to gain in order to get our CO2-impact. In August, we launched, together with Betong Øst, the market's most environmentally friendly concrete without diminishing its properties. The concrete uses deposits produced by renewable greenhouse gases, but this results in both a massive reduction in the output of natural resources, and the problem masses, which otherwise would end up in a depot, enter the cycle again. The sum of this has a great impact on CO2 emissions. This is called a game-changer in our industry. Aside from taking on challenges that particularly affect the climate and the environment, Aaf has also worked innovatively with social challenges related to safety. As you know, safety is very important to us, and we work every day with methodology and solutions so that everyone can come home safely after a day of work. We develop both remote controlled machines, robots and drones that reduce risk and increase our efficiency in project implementation. Here we have D.comX, which is a self-developed remote controlled machine that we use as a mining company for KB. Apart from machines and robots, we are so lucky to have four-legged employees on the team. Our colleagues get hit by a machine or a robot 10 out of 10 times when it comes to search. According to DSB, there have been more than 300 accidents with explosives each year in Norway in recent years. Many are due to undetected explosives from previous construction and construction companies. Old explosives in Norwegian construction sites can cost entrepreneurs and the construction industry enormous sums, and in the worst case, lives. Our applications lead to better risk management. Innovation is about more than digitizing, but finding the most effective and best solutions for good, sustainable and safe operations. With the help of self-developed methods, we can now, for example, also explore the field with drones to clarify the affected areas for safe transport. We at AF don't see innovation as a hygiene factor, but a right to play to be the best in the next project. The way forward can be summarized in a few points. We have faith that we will develop the best technical competence internally, and that this will also give us competition in the future. Here we will continue to build special competence. Vi har en ambisjon om å være ledende i de markedene vi opererer i. Og det mener vi også vi har kompetansen til å kunne være. Vi er stadig nysgjerrige på nye markeder, der vi kan skape verdi, og vi skal fortsatt være utålmodige i søken etter å bli mer effektive uten å gå på akkord med hverken sikkerhet, klima eller miljø. Takk for meg. Da gir jeg ordet tilbake til deg, Amund.

Thank you, Erik. Cool. Now we will summarize this presentation for the fourth quarter. As mentioned, we have revenues of 8.1 billion, and we have a operating margin of 7.9%. There has been a positive trend in the security sector for 2021, and we have had revenue growth and good profitability. Our order reserve is 38.6 billion kroner. The Board has proposed an exchange rate of 6.50 kroner per share for payment in the first half of 2022. I would like to thank all employees in the AF Group. Collectively, we have managed to improve both our safety and profitability work in 2021, which is our most important driver. One can take that with them at home and enjoy themselves during the weekend. On Monday, there will be strikers and sea relief staff. We will continue as before. We must choose the right projects. We will be organized robustly and conduct good risk management. We must be ready for action. We must take care of the money. And last but not least, we must take care of our name and our people. Thank you very much. And then I would also like to thank those who have joined us on the web and digitally. And thank you very much for taking the time to follow up on what we have to present now early in the morning. And then we will continue with Q&A for those who have met up here.