AF Gruppen ASA

A result for a tax of 653 million, which gives a result margin of 7.1%. The cash flow from the drift has been at a little over 1.1 billion in the quarter and over 3 billion last year. The order in the fourth quarter reached 9.5 billion, and we have an order reserve of 44.7 billion per 31.12. We have a net interest rate of 1.3 billion, and the board has promised an exchange rate of 6.50 kroner per share, which will be paid out in the first half of 2026. At AF, we start with safety and health first. Everyone must come home safely on their first day. In this quarter, we had one incident that led to serious personal injuries and injuries. When we share this with everyone, including our subcontractors, we reached a H1 value of 0.2. Our goal is zero. We did not manage to achieve this in this quarter, but we register that the good development in our safety work has continued. And 0.4 for the year we had in 2025 is the lowest in the history of the AF group. If we look at the H2 value, it went up to 8.7, which is a strong reminder for the organisation that safety work is fresh material. If we look at health care, it has been stable for the quarter and year at 4.5%. If we go back to the numbers, we have had a turnover growth of 7.6%, and we ended up with 9.2 billion for the quarter, with a record-high result for us of 653 million, which gave a result margin of 7.1%. EBITDA for AF is over 7%, and we are thus very pleased with this quarter. If we look at the return on invested capital, if we take the results of the last four quarters and put the interest rates back, we end up with 1.7 billion. With an average invested capital of 5.1 billion, that gives a return on invested capital of 33.7%. That is higher than our goal of 20%, and we are very pleased with that. If the project is small or large, if it is blown with or against, it counts its only crown. And when we lift the team, it helps to... If we start with the figure to the right, you can see that in 2020 and 2023 we had about 1.5 billion in cash flow from operations. That has increased to 2.2 and is now over 3 billion for 2025. This is what you can see in the table. If we go all the way to the left, you can see that the cash flow from the drifts in the fourth quarter ended at over 1.1 billion. We had changes in liquidity with 744 million, and we take with us liquid funds starting at 2,391,000,000. The figure on the left shows an improvement from 99 million on the corresponding 10 in last year. When we have a draw facility of 3.5 billion, liquidity is now available for us, right below 5.9 billion. If we look at the balance sheet... Here are the liquid funds and the equity that are in major changes. We now have a total capital of 17 billion, and an equity of just over 3.9 billion. That gives an equity share of 23.1%, and the exclusive effect of IFRS 16 is 25%. The sum of what has been done makes us... Hevde at vi er i en svært solid finansiell posisjon, og styret har foreslått et utbytte på 6 kroner og 50 øre til utbetaling i fyrste helvår 2026. EILE has a responsibility for the footprint that affects the climate and the environment. Our goal is to halve our direct greenhouse gas emissions by 2028. And for 2025, we will release 36,000 tonnes of CO2, which is a reduction of over 20% from the base year. Moving on, we see that we have source sorted over 105,000 tons of waste per quarter, with a source sorting rate of 95, 90 and 97%. The total source sorting rate of 96% is the highest in the history of the AF group. Further, we see that our drilling company has recovered and drilled over 50,000 tons of mass and metal in the quarter, and over 280,000 tons last year, which gives a saving on the environment of over 120,000 tons of CO2 equivalents. Before we move on and take a closer look at our business areas, we can take a look at the northern lights over our wreckage rig in Moirana, where one of our very talented teams is building an airport for Avinor. Then it's a good idea to start with a plant that has had a turnover growth of 12%. The turnover ended at 3.1 billion, with a operating result of 282 million, which gives a margin of 9%. This is AF Anlegg, which not only builds airports, but has also celebrated breakthroughs earlier this year on the clean water project, where TBM, as you can see in the picture, has worked 11 kilometers from east to west under Oslo, to help the people of Oslo get clean drinking water. And this project, together with several, has made that AF Anlegg, Målsøv Maskin and Stenset og RS have marked themselves with very good results in the fourth quarter. VSP has a result far below expectations, while Eikon has a weak result in the quarter. Two contracts were signed this quarter. We will rehabilitate the Hyttfoss dam for state power and expand the drainage system for the lower Romerike water and drainage system. The total order intake for the business area is 3.1 billion kroner per quarter, and the order reserve is up to 18 billion kroner. If we look at construction, we have had a stable activity level of 2.4 billion. We have a operating result of 189 million, which gives a operating margin of 7.8%. Here is AF Bygg Fornyelse, AF Bygg Oslo, and AF Bygg Østfold. As we can see in this picture, one of our many hospital projects in the AF era, AF Bygg Østfold has started here at Aker Hospital with Råbygg. Haga Berg, Strøm Gunnarsen, Strøm Gunnarsen Vestfold, ÅBF and FAS deliver very good results this quarter. Labentreprenør and HTB deliver good results, but Østens AF Håndverk has a weak result this quarter. We have signed four contracts with collected value at the bottom of 1.7 billion, and they are held by Østfold, Labentreprenør and ÅBF. After the end of the quarter, we have signed an agreement to buy 70% of the shares in Byggmester Vest, which is a leading shareholder in Tømre Arbeid in Bergen. This transaction is subject to approval from the competitive authorities. The annual income in this quarter is 2.6 billion, and the annual reserve is just under 10.5 billion kroner. Moving on to Betongmast, we have had a reduced activity with about 14%. The revenue ended at 1.1 billion, with a operating result of 95 million, which gives a operating margin of 8.4%. And worth noting, the results last year at 270 million, which is a record for this business area. Here is Betongmast Oslo. Trøndelag, who, among other things, are building a student pool at Nardo, as you can see in this picture, and Røsand, and Inlandet, and Asker og Bærum, and Østfold, who deliver extremely good results in the fourth quarter. Betongmadsbusker og Vestfold deliver well, while Romerike has a weak result in the quarter. In all, Børsmelt has seven contracts for a total value of over 8 billion kvartal, but it is worth noting that there are only 635 million of those that are included in the annual reserve. The total annual income is on the bottom of 1 billion, while the annual reserve is at about 4.5 billion kvartal. If we go to property, there has been a good result in the quarter, which is driven by two empty sales at Rådhushagen in Ski and Sandbrogaten in Bergen. In addition, there is still a weak sentiment in the market for sales, and we have sold only nine homes in the quarter and survived 29. Here is Fagerblom on Fagerborg, which is under production for us, and there we have a sales rate of 62%. If we look at the development portfolio for property now, we have over 1,500 units in housing and just below that 64,000 BTA in business. If we look at energy and environment, there has been a strong growth of over 48%, and the revenues ended at 594 million, with a operating result of 45 million, which gives a operating margin of 7.5%. The revenue growth here is mainly due to our purchase of AFL power, where you can see some energy generators in the picture, which are in the process of upgrading to a similar power line in the western part of Norway, which represents the revenue growth. If we continue to look at how things have gone with the companies, AF Dekom and AF Energi have delivered extremely good results in the quarter, while it is happy that AF Elkraft's first quarter as part of the AF Group ends with a good result. We have also carried out the purchase of the share majority in the Myre brothers in this quarter, which is an entrepreneurial company that operates within the fire and energy housing sector. In addition, I have listed five contracts at over 600 million, and the order volume collected for the business area is at the bottom of 900 million, and the order reserve is at about 2.6 billion. If we look at Sweden, we have had... Stabil økte inntekter på 1,5 milliard. Vi har et driftsresultat på 110 million, som gir en driftsmargin på 7,3%. Her er det Kanonaden, som blant annet er med å I work for the Swedish power network, as you can see in this picture, together with Hørnesand, Byggreturer and ByggSkydd, which deliver extremely good results in the quarter. HMB delivers a good result, while ByggØst, ByggVest and Projektutvikling have a weak quarter. After the end of the quarter, Bygg Syd has signed an agreement to buy 70% of the shares in HA Bygg. Bård will come more into that in his presentation. But this is where I buy and determine that relevant authorities give approval. And we expect that in the first half of 2026. We have listed four contracts at a value of over 1.5 billion, and the order intake for Sweden is at about 1.4 billion, while the order reserve is at the bottom, at 7.2 billion. If we move on and look at offshore, we have had an increase in activity and ended at 577 million, but we have a operating result of minus 88 million. Here are further adjustments of a project estimate related to an offshore project we have previously covered, at about 100 million, which is a sign of this collective result. And we have now carried out all planned offshore campaigns in this project. If we move on to Aeron, Aeron has increased its activity and delivered a very good result in the fourth quarter. Two contracts have been signed, by Offshore, Dekom and Aeron, on a collected value of just over 400 million. The collected order income is just under 800 million, and the order reserve is just under 2 billion. If we then look at the total order reserve, there are facilities with about 18, buildings with about 10.5, and Sweden with about 7.2, which is in the largest contribution to the order reserve of 44.7 billion, which is the highest order reserve we have had in AF. And we mean thus that we have a solid order reserve with us on our way into 2026. Da går vi over til dagens temapresentasjon, og jeg ber Bård komme opp på scenen.

Takk, Amund, og god dag alle sammen. Vi skal nu gi et statusblikk på virksomheten vi har i Sverige, og litt om hvordan vi tenker om fremtiden. I'll start with security and the year 2025. There we had a H1 value of 0.4, which is the result that we had one damage with the past. We got a turnover of 4.7 billion, with a operating result of 292 million. That gave a operating margin of 6.2%. The result for the tax is 288 million, with a margin of 6.1%. We have nine operating companies in our Swedish business. About half of them operate in construction, and the other half in construction. I have six different projects, which in many ways are a play on the type of projects we have in our reserve, and also the type of customers we have. Up to the left here, Elverket, a housing project that we are building for OBOS in Stockholm. We have Søderåsen Logistikpark, which we are building for Catena down in Skåne. We have Gårdsjøstrand, Omsorgsbolia, which we build in Eskilstuna. We have Slottskogen Sportshall in Gothenburg. And we have a water and sewage plant in Trelleborg. And we build many serial compensation stations for the Swedish power grid. I said earlier that we had one damage with damage in 2025. As Mavun said, our target is zero, so we didn't reach the target. However, we see that we have a very positive development in the safety work, and that the damage frequency has a downward trend, and we are very happy about that. When we received an injury in 2025, it happened in December, and it was the first injury in the past in Sbergen since Q1 2024. Looking at our results, we have now placed five quarters in a row with stable, good results. And if we look at that over the years, we are now back at a turnover margin similar to what we had back in 2021 and before we consolidated with Thomas Sverge Portefølje. We have cleaned up that portfolio, and we have produced a non-profit project portfolio, and we have consolidated companies and made many structural and organisational steps. In Q4, we have also sold AF Prefab in Merendalen, which was a prefab supplier of concrete elements, so that we can focus our focus on the entrepreneurial business. And then there are several companies that are under what we have called the cannonade and the cannonade paraply. And one of them is the cannonade entrepreneur Melardalen. It has grown to a billion company. And we now lift it up as our own business network. They are controlled and led on the basis of Peter Ek in front. To sum up, we have done a lot of cleaning up, we have done a lot of structural adjustments and reorganization, and we have now focused on wages as growth, both through the positions we already have with the companies we have, at the same time as we are curious about whether there are other companies that would fit into the AF group. If we look at the segments that we have exposed before, and maybe take construction first, then there is no doubt that we have been historically heavily exposed to the housing market in Sweden. And the housing market has fallen sharply. It has fallen more in Sweden than in Norway. And it is quite illustrative in the graph to the left, where we see the explosive increase in the number of announced houses that are out for sale, that used the houses. Det er svært vanskelig å omsette boliger i det svenske markedet, og det gjør også at etterspørselen etter nye boliger har gått betraktelig ned. And when we then historically, if we look at 2022, had 70% of our oil reserves towards housing construction and 30% on business, then that gap is almost down now, where we have 36% on housing and 64% on business. And that's both private and public customers. Both the prognoses suggest, and we don't believe in ourselves, that we will get back to the level we were up until 2022 at Boligbygget, at least not in the coming years. However, we see a small, careful trend, or that there is some movement, and there are some Boligprojekts that are starting to get started. There will also be a reduced amortization requirement from April, which may give some help, and which is meant to help the younger people in the housing market. But there are many other parameters, both in terms of interest and real estate growth, which may have a much greater impact on that. Vårt eget egenomselskap, AF Prosjektutvikling, har for tiden ingen prosjekter i produksjon, og vi har heller ingen usolgte leiligheter i ferdigutvikla prosjekter. Vi har vridd en del av årets erben mer over på ånæring. Det er både kommunale investeringer, men også drevet av mye statlige investeringer. For example, Forsvaret has tripled its investment from 2020 to 2026. Svensk Kraftnett already has a high level of investment and will double its investment in the coming years. The NATO membership is one of the drivers that has made it necessary to equip both harbours, roads and railways, as well as other military locations. In terms of power networks, there will be a lot of investment, both in terms of power transfer and in terms of producing more power. When it comes to water and sewage, investments have tripled in the last 15 years. An investment need of 31 billion is expected each year until 2040. That is half of the investments in the new construction of water and sewage cleaning facilities. Both urbanization and the capacity of existing facilities are not high enough. Many of the facilities here are from the 1960s and thus are outranked. There are also new EU requirements, both in relation to the cleanliness of drinking water and the cleaning of wastewater, which are strong drivers towards this. And the fact that we have previously been able to identify segments in growth has also meant that we have been able to increase water reserves and are now well positioned within selected segments. And we have an increasing number of public construction projects that have replaced reduced demand from private builders. We identified early the task that came both within logistics and the construction of wind power. Now the wind power is a little on the way down and waiting to come back a little from 2030, but we are so strong within the energy segment and also well positioned for the increase that comes within the water and drain cleaning work. I am happy to stand here and welcome Håbygg to the AF family. It is a niche concrete entrepreneur who also has 50% of its revenue directed towards the construction and reconstruction of water and drain cleaning facilities. We signed an agreement yesterday to buy 70% of the shares. The remaining 30% are owned by key persons in the company. Håbygd has 62 employees and in recent years had an average turnover of 360 million, with a operating margin of 10%. The company is led by Kai Simfors, and will continue to be an independent company, and will be part of the AF Bygg Syd business. AF Bygg Syd also has about 50% of its revenue directed towards the construction and renovation of water and drainage systems. Therefore, we believe that there are good synergies for value creation in the future. Welcome to AF. The way forward is to focus on building robust organizations that ensure that we have competence in subjects and management. slik at vi får en kontrollert og lønnsom vekst med god risikostyring. Og så skal vi ha fokus hvert eneste dag ute i våre prosjekter som sørger for at alle våre ansatte kommer trygt hjem. Og så vil jeg bruke sjansen til å takk alle svenskar som fører med nu på webb for de gode prestasjoner som da er gitt nu i 2025. Tusen takk.

Thank you, Bård. Let's go over to the summary of the quarter. We had revenues of 9.2 billion, with a result before tax of 653 million, which gave a result margin of 7.1%. If we look at 2025 in total, we had a turnover of just under 32 billion, with a result before the tax on 1 billion, 653 million, which gives a result margin of 5.2%. Let's take a helicopter look at... AF has had a positive development in HN value and has the lowest value for a year that we have had so far. We have record high activity with the best result both for the quarter and for the year that we have had so far. And we have a record high order reserve with a solid financial position. The board has proposed an exchange rate of 6.50 kroner per share, which will be paid out in the first half of 2026. Safe, profitable, and to rely on. We at AF We at AF, we have never doubted. We have not doubted a second about what is to come and what will happen in the future. It is about choosing the right project, organising robustly, being active, paying attention to the money, And last but not least, take care of the people. That was what we had prepared to say. And then I asked Bård and Anni, financial director at AF, up on stage. And then we are ready to answer questions. Whether it is someone who has sent in or someone in the hall who has questions for us.

Please use the microphone and introduce yourself.

Hi, Vettle Williamsen, SPN Markets. Can you say something about the risk in the remaining project portfolio in offshore DECOM, i.e. without the L7 project?

There is always a risk in our portfolio, in all business areas, and there is nothing abnormal in that portfolio.

What about the exchange rate you are paying for 6,5 kroner now? Are you thinking about what is calculated based on the performance in the second half of 2025? Is there any correlation there, or how do you think about that?

We are evaluating the exchange rate from the performance in the whole of 2025. And in relation to our exchange policy, we essentially exchange twice a year. Thank you.

Ulf Leine, Bøland Kredit. Can you say something about the operating margin? 5% is quite good, you have good profitability. 7% is very good, if you correct for offshore and decom, it is almost 8% in the quarter. What do you think about operating margins in the future? Is the construction suddenly very profitable, or has there been anything special in the quarter? I am also aware that there are many markets here, but can you comment a little on the operating margins, what do you think in the future?

We know it's high. 7% is the goal for the A-class. In the last 10 years, we have had over 12% growth and 5.6% margin. We have had about 38% reduction in invested capital. We believe it should be possible to extend further. We believe there are improvement opportunities in our business. And we believe that 7% should be possible to achieve, but we know that there is a lot of hard work behind it in order to achieve it. And what it's all about is summarized here in the most important categories, among other things.

Would you like to say something about risk management as well? It seems as if you now have fewer problem projects than before. What has happened in terms of project management, risk management? What is it that makes it look better in the future? We will not choose to fail projects like we did before, and not just the AF group, but a little more generally, it seems as if there are fewer problem areas in terms of construction and construction.

We have a very strong focus on what we call project management, and on being good at our subjects. It all comes down to having good security performance, having a good flow of accounts in the projects, and so on, as you know. So it's all about practice. We have the four principles for business management, and we have the eight principles for good project management. And we try to train that, both in the line-up, but also in the course and everything we do. So I would say that there is gradual improvement in our long-term goals, as you have witnessed.

Thank you. Then we move on to questions that come in digitally. The first comes from Simon Mortensen in DNB Carnegie. It concerns Construction City. Can you say something about the effect of the Construction City project for construction and for concrete masts?

First of all, I'd like to say that the construction city effect is that we have headquarters here. It's fantastic good. So we like our new headquarters and what that sound is meant to be. And it's obvious that construction city has been the biggest building project AF has had. And we've had a very good relationship both with the builders and it's gone well. So that's... En av mange viktige bidragsytere inn i resultatene både til betongmast og til bygden. Takk.

Siste spørsmålet er fra Frode Økeland. Han er da auktionær. Det gjelder da hendelsen for et år siden da AF Anlegging AB ble sagt opp, eller da Trafikverket hevet avtalen med AF Anlegging AB på prosjektet E4 Forbifart Stockholm. Hvor står denne saken i dag?

Den saken står sånn som vi har informert om tidligere. Vi har bestritt hevingen, og vi kommer til å forfølge våre krav der. Det er ikke noe nytt å melde om sånn sett. Takk. Det skal være gjennom ditt alt også. Bra. Da... We thank you both for being born on the web, and not least you who have met up. Thank you very much, and after all, have a good weekend. Have a nice day.