AF Gruppen ASA

This is a presentation of the first quarter of 2026 for the AF Group. Today's theme is power and energy, and will be presented to the board of directors Tormod Solberg. There will be opportunities for questions and answers after the presentation, and later today a general meeting will be held here at Construction City. Main points in this quarter. Our turnover ended at about 8 billion, with a result before tax of 318 million, which gives a result margin of 4%. The cash flow from drift was 347 million, and we had an order entry in this quarter of about 7.7 billion. Årdreserven per 31. mars var på 44,5 milliarder, og vi har en nettorentebærende fordring på 1,9 milliarder. In AF, we start with safety and health first. We had four incidents in this quarter that led to injury or serious personal injury without injury. When we divide that by the millions of hours that we and our sub-entrepreneurs perform, we get a H1 value of 0.8. The response last year was 0.9. And if we look at the H-value, it is 6.9 versus 8 last year. It is going in small steps in the right direction. However, we must strengthen the survival in our safety work, since we are going to reach our goal of everyone being safe at home from our business on the first day. If we look at health care, it is at 4.7% this quarter, against 4.8% last year. We want to look at health care at 3%. A closed health care means that we are talking about leadership, welfare and work environment, and not least productivity in the company. If we go back to the numbers, we have had a turnover growth of about 12%, so the turnover went from 7.1 billion to about 8 billion, and the result before the tax increased by 49%, which went from 214 million to 318 million. This gives a rise in the result margin of 1% and ends at 4% in the quarter. Nå er det 5% i driftsmargin som er krav i AF, og som vi trakte etter hårt eneste kvartal. Men hensyn tatt at dette er første kvartal, som ofte er noe svakere, samt at det for oss er et rekordkvartal for første kvartal, både på aktivitetsnivå og resultat, så er vi godt fornøyd med dette kvartalet denne gangen. If we look at the return on investment capital, we have results before tax, and we put back the interest rates in the last four quarters. We had 1.8 billion in results, divided by an average investment capital of 5.4 billion, and that gives a return on investment capital of 33.7%. That is well over our goal of 20%, and we are very pleased with that. Let's move on to the cash flow. We'll start with the cash flow from Drifta, which you can see in the figure to the right. It increased from 330 million last year to 347 million this year. We've also had changes in liquidity with a cash flow effect of 660 million, which gives us liquidity funds starting at about 3 billion kroner. De 3 milliardene finner gatt til høgre i denne figuren. Når vi har relativt stabile rentebærende fordringer og leieforpliktelser både på maskiner, kontor og lager, så får vi en netto rentebærende fordring på 1,9 milliarder. Det er en kraftig forbedring fra tilsvarende tid i fjor, når vi var på 290 millioner. We have a withdrawal facility in the company at 3.5 billion, and together we have available liquidity at 6.5 billion. If we move on to the balance sheet, we see that the total balance sheet has increased from 15 to 17.3 billion, and the equity increased by about 1 billion to 4.5 billion. This gives an equity share. 26.3%, up from 24.2% on the corresponding 10% last year. We mean to say that we are in a solid financial position. We have set ourselves an ambitious goal to halve our direct climate gas emissions, i.e. scope 1 and 2, by 2028. As you can see, last year we reduced by over 20% from our base year in 2020. Starten på år i år fortsett i en god utvikling med 11% reduksjon fra tilsvarende 10 i fjor. Vi har släppt ut over 8800 ton med CO2 i første kvartal. Videre har vi kildesortert over 64 000 ton med avfall og med en kildesorteringsgrad på 95% på totalen. And we have recovered more than 74,000 tons, in relation to mass and metal, from our river business, which has tracked the environment for about 30,000 tons of CO2 equivalents. Before we move on and look at our business areas, let's take a look at This is our rig in Valdaren. Valdaren is one of the ten largest dams in Norway. This is where the AF facility is located, and Hydro is a part of it. This facility has been upgraded by the authorities. Look at this yellow rig with the AF logo on it. In addition to that, it is tidy, tidy, and has good safety roads. This is a good start to a project visit for me. Det er også en god start å starte med virksomhetsområdet Anlegg i dette kvartalet, for de har hatt en vekst på 15 prosent, og inntekten har endt på 2,7 milliarder, med et driftsresultat på 144 millioner, som gir en driftsmargin på 5,3 prosent, som er opp 2,5 prosentpoeng fra tilsvarende i fjol. Her er Sveitserure vårt i nord, Målsøl Maskin og Transport, som Tikko går, sammen med Stenset RS, som leverer svært gode resultater i første kvartal. AF Anlegg har en rekke store prosjekter i produksjon, som for eksempel bygger ny luftanlegg for Avinor oppe i Moirana, som dere ser et bilde av her. AF Anlegg har bidratt med volym og et godt resultat i kvartalet. while Eikon and VSP have weak results in the quarter. We have a contract with Eikon to rehabilitate Bjølsegrød Vattendam for state power and energy. The total order entry in the quarter is 1.5 billion, while the order reserve is 16.7 billion. Moving on to construction, we have had about 7% growth and revenues of 2.3 billion, while the operating result is 79 million, which gives a operating margin of 3.5%, up 0.2% from last year. Bygg Fornyelse og Strøm Gunnarsen leverer svært gode resultater, mens Bygg Oslo, Bygg Østfold, Lab, HTB og OBF leverer gode resultater. Haga Berg og Strøm Gunnarsen Vestfold leverer noe under forventning, mens FAS har svake resultater sammen med AF Ontverk som har preget kvartalet. Vi har også gjennomført kjøpet og 70% av aksjene i Byggmesteren Vest i kvartalet, som har bidrat til å styrke posisjonen vår innen tømmer i Bergen. Vi har børsmeldt fire kontrakter på en samlet verdi på ca. 1,6 milliarder, og den fordeler seg på Strøm Gunnarsen Lab og Byggfornyelse. And the total order volume is about 3.2 billion, while the order reserve is happily up to 11.4 billion. When we look at Betongmast, it has a stable activity level with about 1.1 billion in turnover, and a operating result of 47 million, which gives a operating margin of 4.4%, up 0.4% from last year. Here in Buskerud, Vestfold, there is Trøndelag, which, among other things, builds student apartments on Nardo, as you can see in the picture here, together with Røsand, Inlandet, Asker og Bærum and Østfold, which deliver good results. Oslo has some under-expectations, while Romerike is last in this field, with a weak result in the quarter. Vi har børsmeldt tre kontakter i kvartalet på ca. 1,2 milliarder, men her er det kun ca. 200 millioner på den kontrakten til Betongmast, Busker og Vestfold, som er inkludert i årdereserven i dette kvartalet. Samlet åringang er på 677 millioner, mens årdereserven er på 4,1 milliarder. If we go to the property, the property has had a weak result in the quarter. It is positive that sales contracts for 40 homes have been introduced, up from 25 last year. And the project Nyhaugen on Vigeland in Bergen, as you can see in the picture here, had a sales start in the quarter. We have one housing project under production, and we have 115 finished, but unsold units by the end of the quarter, where our share is 44. If we go to energy and environment, we have had over 50% growth in this business area, and we end up with 554 million in turnover, with a sales result of 33 million, which gives a sales margin of 6%, up 1% from last year. It is especially pleasant that AFL Kraft in its second quarter started the year, and the first quarter must deliver a very good result. DECOM and Energi deliver more than expected in the quarter. The annual income was 652 million, while the annual reserve is about 2.7 billion. If we go to Sweden, we see that the income has increased by about 19%, so we have a turnover of 1.1 billion, and we have a operating result of 47 million, which gives a operating margin of 4.2%. From and with the first quarter, Kanonaden Entreprenad and Kanonaden Melardalen have been organized as two self-sufficient units. If we look at the performance in the quarter, we see that there is some variation. Men kanonaden Melardalen og AF Hørnason byggeturer har svært gode resultater i kvartalet, HMB nogg og under forventning, mens kanonaden Entreprenad, Bygg Syd, Bygg Øst og Bygg Vest har svake resultater. We have agreed to buy 70% of the shares in HA Bygg Entreprenad, which is a concrete entrepreneur in western Sweden. We expect to buy it after the end of the quarter. The annual income is 613 million, and the annual reserve is 6.7 billion. Offshore, we have had an increased activity level, but a weak negative result. Both Offshore Dekom and Aeron have had weak results in the first quarter. And after the end of the quarter, we have signed an agreement to buy all shares in Klaxon Engineering Service together with leading employees. This is a condition of approval from Norwegian competition authorities, and as soon as that is in order, we expect the implementation of this purchase in the second quarter of 2026. Vi har hatt en rekordøg i orderingang i kvartalet på ca. 1,3 milliarder, og orderreserven er på 2,9 milliarder. If we look at our order reserve, it is a facility with 16.7, a building with 11.4, Sweden with 6.7 and Betongmast with 4.1, which are the largest contribution areas to a collected order reserve that is relatively stable at 44.5 billion. And we mean that it is a solid order reserve to bring with it in the coming years. While we wait for Tormod Solberg to come up and present today's theme, we can move on to the project in Valdalen and see how it looks there. Tormod, welcome up on stage. Thank you.

My name is Tormod Solberg, and I'm a board director at AF. As Amund mentioned, I'll give you a brief insight into what we do in terms of power and energy. AF contributes to the social responsibility linked to power along three main lines. It's construction, electrical infrastructure and energy efficiency. I'll get a little closer to that, but first a little tour within the enterprise area Energy and Environment. In short, the enterprise area Energy and Environment is energy-efficient solutions for construction, industry and infrastructure. It is a leading actor in environmental sanitation, demolition and reconstruction. Energi og miljø hadde en omsetningsvekst på 52% sammenlignet med samme kvartal i fjor. Økningen skyldes i hovedsak oppkjøpen av AFL-kraft og Brødrene Myre. AFL-kraft leverte svært gode resultat i første kvartal. Ordreserven for virksomhetsområdet har økt med 1,5 milliarder siden samme kvartal i 2025. Virksomhetsområdet har hatt En alvorlig pensionsskade i kvartalet, og det er grunnen til at HN-verdien er på 3,1. Jeg skal bruke de neste minuttene til å fortelle litt om energidelen av virksomheten, og så litt om hvordan vi jobber inn mot kraftsektoren. AF's historiske energivirksomhet jobber for å redusere energiforbruket gjennom alternative og fornybare løsninger for nye og eksisterende bygg. AFE Energi has a long experience as both advisor and entrepreneur, and has a broad project portfolio within a number of segments. AFE Elkraft became part of the AFE Group in 2025, and delivers the operation of a similar way, combined with larger total enterprises within electrical infrastructure. They primarily work with central, regional and distribution networks, and also deliver to a number of different segments, as you can see on the screen here. We see that increased power needs give project opportunities in new areas, and potentially also in new geographies. AFD was able to tear down old power lines, here from Aurelandsprojektet in Vestlandet. and we work with rehabilitation and development of both central and regional networks, here from Onerheim and Simonsvik traffic stations. As a curiosity, AFL-kraft works with the world's longest fjordspend for electrical air traffic, around 30 kilometers outside of Nuuk in Greenland. Det er et økende kraftbehov i Norge, og med tilbyr en rekke tjenester til kraftsektoren. Vi jobber med kraftverk her for Valdalen for hydroenergi, med dammanlegg her for Nesjedammen for statkraft, kabeltunneller her for Sogn-Ulven i Oslo statnett, og i Sverige jobber vi mye for Svenska Kraftnett her for Aurora-prosjektet, Og i tillegg ser vi en økende etterspørsel in datacenter og vindkraft både på sjø og land. Så la oss zoome litt ut og se hvordan dette området gir spennende muligheter for AF fremover. Statnet og NVE forventer en høy vekst i energiforbruket på grunn av økt etterspørsel, og får kunne nå regjeringens mål om å bli et lavutslippssamfunn innen 2050. Elektrifiseringen av transport, datacenter og produksjon av grønn hydrogen bidrar mest til den veksten som dere ser på grafen her. In recent years, there has been a large increase in the number of consumer customers who want to connect to the power grid. Right now, according to the statistics for the connection issue, the capacity is reserved for about 8000 megawatts of consumption. And there is an even larger volume in the queue. Most of the reserved consumption is linked to data centers and the production of hydrogen. Dette gir både en behov for økt produksjon, og det gir en behov for utvidelse av nettkapasiteten de neste årene. Det er reservert tilknytning for høye volym både for havvinn og landbasert vindkraft de neste fem årene. I tillegg er det forventet at utbygging av vindkraft i forbindelse med kraft- og industriløft i Finnmark vil gi et økt behov. Det er også forventet at eksisterende kraftanlegg har et fornyingsbehov og behov for effektutvidelse, samt at det vil komme noen ny produksjon gjennom nye kraftverk. Så det er usikkert både når og hvilke av disse her prosjektene som realiseres. Men produksjonen må absolutt økes, det er ganske åpenbart, for å nå det kommande kraftbehovet de neste årene. AF-gruppen sin virksomhet berører både forbrukere og producentmarkedene i det norske kraftsystemet, gjennom nybygg og utvidelser, som jeg har vist her, men også ved fornyelse av eksisterende infrastruktur. Som et eksempel ser vi på grafen til venstre at et høyt antall trafostasjoner ble satt i drift mellom 1960 og 1990. De har en teoretisk levealder på 40-60 år. Derfor er det forventet et stort behov for fornyelse i transmissions- og regionalnettet de kommende årene. So if I sum up what I said on the previous pages, it is obvious that there is an increasing need for power, which means that the state network, the network companies, state power and the power industry, such as data centers, all expect increased investments in the coming years. Så avslutningsvis då, noen tanker om framtiden. Vi skal fortsette å strekke oss etter de store og utfordrande prosjektene med høy samfunnsnytte. Etterspørselen etter energi- og kraftrelaterte tjenester er god, og det inkluderer rehabilitering og nybygg av energiforsyningen, effektive løsninger for reduksjon av energibruk, og sikker og industrialisert prosjektgjennomføring. og at vi som selskap videreutvikler den kompetansen vi allerede har innen bærekraftige og funksjonelle løsninger. Takk for meg. Amen.

Tusen takk for det, Tormod. Da skal vi oppsummere kvartalet. Vi hadde altså en rekordhøg aktivitetsnivå til å være første kvartal, med en omsetning på 8 milliarder og et driftsresultat på 323 millioner, som gir en driftsmargin på 4%, som er tilsvaret for resultat før skatt. We have a good order reserve and a solid financial position, and we see that there is still good development in security work. Until next quarter, we will continue with what we always do in AF, 15th of March with Elmot. We will continue to choose the right project, organize robustly, be ready for operation, we will pay attention to the money, and last but not least, we will pay attention to our people. Tusen hjertelig takk. Det var det vi hadde tenkt å si på presentasjonen. Så da vil jeg få invitere Anne Jøen, finansdirektør i AF Opp, og sammen med Tormod. Og så får vi høre om det har kommet noen spørsmål, eller om det er noen spørsmål i salen.

We can start with two questions that have come out on the net. It's from Bengt Jonasen in ABG. The first question is about the equipment. How worried are you about the fall in the year's reserve, and has the competitive image changed?

As the prognosis center and several point out, there is still a large investment market in Norway of over 105 billion, which is expected in investment investments in 2026, with growth until next year, and in Sweden it is at 105. Over 150 billion med nær 7% vekst. Så det er et stort marked. Vi har 16,7 milliarder i årdreserve som er en solid årdreserve. Vi er vant med at dette går litt i faser. Vi fortsetter å regne og skal velge rett prosjekt. Der vi har riktig konkurransekraft og kan gi verdi for kundene.

The second question is about offshore. Do you wish to communicate when the TAPS project in offshore is finished and the final financial statement is completed?

As I said in the last quarter, we are finished with the activity out in the sea. And then it is a more normal project to take control of the structures when they are in the country and be done with the final action and the rest that goes on.

With less questions from the audience, we'll go through the questions round this time. A question from the audience, if you can use the microphone and introduce yourself.

Thank you. Vetle Virelsen, SP Markets. I'm wondering if it's possible to get a little more color on the rationale for buying up Kleksten, and how it fits into the rest of the offshore business?

That we can give. We have a long-term perspective on all business areas that we are involved in. We want to strengthen existing businesses, and we want to take new steps in Ransom and where we stand. So we are looking for structural growth, where there is project activity, and where we take new steps within the field. And Kleksten is a promising company that we have known for many years, and that we see can fall nicely into our portfolio. Offshore, we are strengthening further within offshore decommissioning, but also within conventional energy, and at least energy. renewable energy such as offshore wind.

Thank you. Last chance for questions. If not, we can conclude from the beginning.

Amen. There are no more questions, so we thank those who have met up here today, and we thank you who have followed us on the net, and have a good weekend.