Interim report
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1 1ST QUARTER 2025 First Quarter 2025 AF Gruppen ASA 15 May 2025
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2 Q1 AF has always been proud of its strength and ability to perform complex tasks. The group’s entrepreneurial spirit has been characterised by the ability and willingness to think differently and to find better, more future- oriented ways to generate value. From the CEO AF Gruppen has improved its profit compared with last year, has a strong order backlog and a good cash flow in the quarter. We have improved profitability in several business areas, although the profit was weakened by approx. NOK 100 million in accrued shutdown and termination costs in the Civil Engineering business area. In February, the Swedish Transport Administration terminated its contract with AF Anläggning AB for the E4 Förbifart Stockholm project. We strongly disagree with the claims made by the Swedish Transport Administration and are disputing the termination. AF will claim compensation for any loss we suffer. AF Anläggning AB is expected to be weakly positioned to receive new assignments in Sweden while the dispute is ongoing. Throughout 2024, a new group strategy has been developed, and the shared priorities in the strategy are intended to make us even better at creating value going forward. We will continue to clea r up the past and build for the future. Towards 2028, we will work safely and profitably, while halving our climate and environmental footprint.
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3 1ST QUARTER 2025 OVERVIEW • Revenues were NOK 7,129 million (7,187 million) for the 1st quarter. • Earnings before tax were NOK 214 million (186 million) for the 1st quarter. • The profit margin was 3.0 % (2.6 %) for the 1st quarter. • Net operating cash flow was NOK 330 million (128 million) for the 1st quarter. • The order backlog stood at NOK 44,232 million (40,275 million) as at 31 March 2025. • Net interest-bearing receivables as at 31 March 2025 were NOK 290 million (-974 million). REVENUES PER QUARTER (NOK MILLION) EARNINGS BEFORE TAX PER QUARTER (NOK MILLION)
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4 SUMMARY OF 1ST QUARTER Key figures (NOK million) 1Q 25 1Q 24 2024 Revenue 7,129 7,187 30,638 EBITDA 406 357 1,850 Earnings before financial items and tax (EBIT) 223 201 1,149 Earnings before tax (EBT) 214 186 1,085 Result per share (NOK) 1.27 1.30 6.52 Diluted result per share (NOK) 1.27 1.30 6.52 EBITDA margin 5.7 % 5.0 % 6.0 % Operating profit margin 3.1 % 2.8 % 3.8 % Profit margin 3.0 % 2.6 % 3.5 % Return on capital employed (ROaCE)1) 25.6 % 19.5 % 24.8 % Cash flow from operating activities 330 128 2,217 Net interest-bearing debt (receivables) -290 974 -99 Shareholders' equity 3,632 3,288 3,488 Total equity and liabilities 15,006 15,038 15,003 Equity ratio 24.2 % 21.9 % 23.2 % Order intake 11,010 5,472 28,998 Order backlog 44,232 40,275 40,351 LTI-1 rate 0.9 0.8 0.5 Sick leave rate 4.8 % 4.5 % 4.1 % Greenhouse gas emissions scope 1 and 2 9,895 12,263 43,226 Source separation rate 95 % 91 % 94 % 1) Rolling average last four quarters
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5 1ST QUARTER 2025 Business Areas The Oseberg hall in the new Museum of the Viking Age. Photo: Eirik Førde
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6 CIVIL ENGINEERING REVENUE (NOK million) OPERATING PROFIT (NOK million) OPERATING PROFIT (%) KEY FIGURES NOK million 1Q 25 1Q 24 2024 Revenue 2,366 2,044 9,590 Earnings before financial items and tax (EBIT) 65 116 655 Earnings before tax (EBT) 88 131 723 Operating profit margin 2.8 % 5.7 % 6.8 % Profit margin 3.7 % 6.4 % 7.5 % NUMBER OF EMPLOYEES AF Gruppen 5,558 ORDER BACKLOG (NOK million) CIVIL ENGINEERING CONSISTS OF • AF Anlegg • Målselv Maskin & Transport • Stenseth & RS • Eiqon • VSP
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7 1ST QUARTER 2025 AF is one of Norway’s largest actors in the civil engineering market, serving both public and private sector customers. The project portfolio includes roads, railways, bridges, port facilities, airports, tunnels, foundation work, renovation and construction of concrete structures, power and energy plants, as well as onshore facilities for oil and gas. Civil Engineering has a high level of activity in the 1st quarter with revenue growth of 16% compared to the same quarter last year. The Civil Engineering business area reported revenues of NOK 2,366 million (2,044 million) for the 1st quarter . Earnings before tax were NOK 88 million (131 million) for the quarter . The profit margin was 3.7 % (6.4 %). AF Anlegg delivered results below expectations in the first quarter. The result is affected by approximately NOK 100 million in shutdown and termination costs as a result of the Swedish Transport Administration’s termination of the contract for the E4 Förbifart Stockholm project on 19 February, 2025. AF Anlegg has disputed the termination. The Swedish Transport Administration has subsequently filed a police report against AF Anläggning AB, which is the company the contract for the project at Lovö was entered into with. At the time of termination, the project had a remaining production value of NOK 1 billion excluding VAT. The remaining project portfolio, which consists of several major production projects, maintains high activity and strong operations during the quarter. Målselv Maskin & Transport reported very good profitability in the first quarter. Stenseth and RS also had good results in the quarter. However, Eiqon and VSP experienced weak results in the first quarter of the year. Three contracts were reported to the stock exchange in the first quarter. In January 2020, AF Anlegg was selected by Nye Veier for the concretisation phase for zoning, design and construction of the new E6 Roterud –Storhove road. The contract for detailed e ngineering and construction of the project was entered into during the quarter. The work started immediately and will continue until the summer of 2030. The contract is valued at NOK 6 ,350 million, excluding VAT. AF Anlegg also reported a contract to the stock exchange for the construction of the Valldalen dam and flood diversion project for Hydro Energi AS. The contract has an estimated value of NOK 200 million, excluding VAT. Consolvo entered into a contract during the quarter with Bane Nor SF for the upgrade of the Linbanen Snow Shelter on the Ofoten Line. The contract is a construction contract valued at NOK 122 million, excluding VAT. Civil engineering had an order intake of NOK 6,584 million (508 million) in the 1st quarter. The order backlog for Civil Engineering was NOK 20,651 million (16,604 million) as at 31 March 2025 E6 Storhove-Øyer for Nye Veier. Photo: Hans Fredrik Asjbørnsen
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8 CONSTRUCTION REVENUE (NOK million) OPERATING PROFIT (NOK million) OPERATING MARGIN (%) KEY FIGURES NOK million 1Q 25 1Q 24 2024 Revenue 2,114 2,203 8,881 Earnings before financial items and tax (EBIT) 69 64 337 Earnings before tax (EBT) 77 66 351 Operating profit margin 3.3 % 2.9 % 3.8 % Profit margin 3.7 % 3.0 % 4.0 % NUMBER OF EMPLOYEES AF Gruppen 5,558 ORDER BACKLOG (NOK million) CONSTRUCTION CONSISTS OF • AF Byggfornyelse • AF Bygg Oslo • AF Bygg Østfold • Haga & Berg • Strøm Gundersen • Strøm Gundersen Vestfold • AF Håndverk • LAB Entreprenør • Helgesen Tekniske Bygg (HTB) • Åsane Byggmesterforretning (ÅBF) • Fundamentering (FAS)
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9 1ST QUARTER 2025 AF provides contracting services for residential, public and commercial buildings. Services range from engineering design to new construction and renovation of existing buildings. AF collaborates closely with customers to find effective and innovative solutions suitable for their needs. Construction encompasses the Norwegian building activities except for Betonmast, and is mainly located in Eastern Norway and the Bergen Region. Construction reported revenues of NOK 2,114 million (2,203 million) for the 1st quarter . The business area reported earnings before tax of NOK 77 million (66 million) with a profit margin of 3.7 % (3.0 %) for the quarter. AF Byggfornyelse, AF Bygg Østfold , Strøm Gundersen Vestfold, and ÅBF delivered strong results in the first quarter. Haga & Berg and LAB Entreprenør delivered results that were somewhat below expectations, and Strøm Gundersen and HTB delivered results below expectations. In addition, AF Bygg Oslo, AF Håndverk and FAS had weak results during this quarter. Two new contracts were reported to the stock exchange in the first quarter. LAB Entreprenør was chosen to renovate a commercial building in Bergen city centre. The contract will be carried out as a turnkey contract and is worth NOK 131 million, excluding VAT. Strøm Gundersen Vestfold was chosen to build a new office building in Horten. This is a collaborative contract worth NOK 108 million, excluding VAT. Construction had an order intake of NOK 960 million (3,386 million) in the 1st quarter. The o rder backlog of Construction was NOK 9,977 million (10,647 million) as at 31 March 2025. Haga & Berg has rehabilitated in Schweigaards gate 28. Photo: Haga & Berg
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10 BETONMAST REVENUE (NOK million) OPERATING PROFIT (NOK million) OPERATING MARGIN (%) KEY FIGURES NOK million 1Q 25 1Q 24 2024 Revenue 1,044 1,005 4,367 Earnings before financial items and tax (EBIT) 42 -20 120 Earnings before tax (EBT) 55 -11 163 Operating profit margin 4.0 % -2.0 % 2.8 % Profit margin 5.3 % -1.1 % 3.7 % NUMBER OF EMPLOYEES AF Gruppen 5,558 ORDER BACKLOG (NOK million) BETONMAST CONSISTS OF • Betonmast Oslo • Betonmast Romerike • Betonmast Buskerud-Vestfold • Betonmast Boligbygg • Betonmast Trøndelag • Betonmast Røsand • Betonmast Innlandet • Betonmast Asker og Bærum • Betonmast Østfold • Betonmast Eiendom
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11 1ST QUARTER 2025 Betonmast is a construction contractor with operations in the largest markets in Norway. The project portfolio encompasses everything from major residential projects to commercial and public buildings. Betonmast is a major actor in public sector construction and has extensive experience in project development and collaborative contracts. Betonmast also has a property portfolio in Norway. Betonmast reported revenues of NOK 1,044 million (1,005 million) in the 1st quarter . The business area reported a good result with increased profitability compared to the same quarter last year with earnings before tax of NOK 55 million ( -11 million) and improved its profitability in the quarter with profit margin of 5.3 % (-1.1 %). The Betonmast Oslo, Buskerud-Vestfold, Røsand, Innlandet and Østfold units all delivered good results for the quarter. Betonmast Trøndelag and Asker og Bærum delivered slightly below expectations, while Betonmast Romerike and Boligbygg had weak results in the quarter. Betonmast has a separate property portfolio with one property project that has a total of four residential units under production. Betonmast Eiendom reported a weak result for the quarter. For further information on the projects, see Note 7. Betonmast reported two new contracts to the stock exchange during this quarter. Betonmast Røsand has signed a contract with Campus Kristiansund 3 AS for the construction of a hotel in Kristiansund city centre. The hotel will be located on the neighbouring plot to Campus Kristiansund, a commercial building of 20,500 GFA sqm, which the unit handed over to the same developer in the autumn of 2024. The contract is a turnkey contract valued at approximately NOK 320 million, excluding VAT. During the quarter, Bet onmast Oslo was nominated by Oslobygg KF for the construction of Stovner School in Oslo. The project includes an extension to the existing primary school, as well as the renovation of parts of the current school building. Stovner School will be able to accommodate 550 pupils and 100 staff members after the expansion. The turnkey contract has a value of approximately NOK 300 million, excluding VAT. Betonmast had an order intake of NOK 1,171 million (342 million) in the 1st quarter. As at 31 March 2025, Betonmast's order backlog was NOK 4,958 million (5,539 million). Trondheim Katedralskole. Photo: Henning Larsen
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12 PROPERTY EARNINGS BEFORE TAX (NOK million) ENTERED INTO SALES CONTRACTS (TOTAL NUMBER) REVENUE FROM RESIDENTIAL PROJECTS IN PRODUCTION (NOK million , 10 0% SHARE) KEY FIGURES NOK million 1Q 25 1Q 24 2024 Revenue 5 6 23 Earnings before financial items and tax (EBIT) -8 -7 -39 Earnings before tax (EBT) -5 -3 -25 Capital employed 794 870 846 NUMBER OF EMPLOYEES AF Gruppen 5,558 SALES RATIO PROJECTS IN PROGRESS (%) PROPERTY CONSISTS OF • AF Eiendom • LAB Eiendom
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13 1ST QUARTER 2025 AF develops, designs and carries out residential and commercial projects in Norway, and activities take place in geographical areas where AF has its own production capacity. AF works closely with other industry actors, and property development projects are generally structured as associated companies and joint ventures. The Property business area consists of two operating units, AF Eiendom and LAB Eiendom, local ly established in Greater Oslo and the Bergen region respectively. The Property business area reported a negative result for the quarter . Earnings before tax were NOK -5 million (-3 million) in the 1st quarter. A challenging property market with high interest rates and uncertain market sentiment continued to contribute to low sales figures in the first quarter. Sales contracts for 25 (19) homes were signed in the quarter, of which AF’s share is 11 (8). 72 homes were handed over at Rolvsrud Arena in the first quarter. In addition, 7 homes were handed over, of which 6 were related to the Skårersletta MIDT project and 1 to Fyrstikkbakken. A total of 99 (27) completed units were unsold at the end of the quarter, of which AF's share was 42 (14). Just one residential property project was in production at the end of the quarter: Rolvsrud Arena in Lørenskog. The project has 95 residential units in production. Sales contracts have been signed for 32 of them. This represents a sales ratio of 34% for co mmenced projects. For more information on projects for own account, see Note 7. AF ha s a significant development portfolio in Norway estimated at 1,542 (1,707) residential units. AF’s share of this is 779 (852) residential units. AF has an ownership stake in commercial property under construction with a total RFA of 102,749 (73,407) square metres, of which AF's share is an RFA of 51,966 (36,524) square metres. Fagerblom – concept image. Photo: AF Eiendom/Plyo
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14 ENERGY AND ENVIRONMENT REVENUE (NOK million) OPERATING PROFIT (NOK million) OPERATING MARGIN (%) KEY FIGURES NOK million 1Q 25 1Q 24 2024 Revenue 365 338 1,510 Earnings before financial items and tax (EBIT) 18 17 93 Earnings before tax (EBT) 18 17 90 Operating profit margin 5.0 % 5.1 % 6.2 % Profit margin 4.9 % 5.1 % 5.9 % NUMBER OF EMPLOYEES AF Gruppen 5,558 ORDER BACKLOG (NOK million) ENERGY AND ENVIRONMENT CONSIST OF • AF Decom Jølsen Miljøpark Rimol Miljøpark Nes Miljøpark • AF Energi AF Energija Baltic Enaktiva ETA Norge • Mepex
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15 1ST QUARTER 2025 AF offers energy-efficient solutions for buildings and industry and is a leading actor in environmental clean-up, demolition and recycling. The environmental parks receive contaminated material that is cleaned and recycled into new products. Energy offers everything from energy mapping and optimisation to large turnkey contracts, energy centers, as well as operation and service contracts. Energy and Environment reported revenues of NOK 365 million (338 million) in the 1st quarter. This corresponds to a revenue growth of 8% compared to the same quarter last year. The business area delivered earnings before tax of NOK 18 million (17 million). AF Decom maintains its revenue in the first quarter and has delivered a result slightly below expectations. Waste is a valuable resource in a growing circular economy. The Environmental Centres contributed with a very good result in the quarter and have recycled 74,900 (63,923) tonnes of material in the first quarter. AF Energi significantly increased its level of activity compared to the same quarter last year. Profitability is somewhat below expectations in the first quarter. During the first quarter, AF Energi was awarded a contract by Hafslund Celsio AS for electromechanical work at the Aker Hospital heating plant. The contract has an estimated value of NOK 100 million, excluding VAT. After refurbishment, the heating plant will supply 52 MW of district heating to Aker Hospital, the metropolitan out -of- hours medical service, and district heating customers in Groruddalen. Energy and environment had an order intake of NOK 436 million (347 million) in the 1st quarter. The order backlog for Energy and Environment stood at NOK 1,265 million (1,258 million) as at 31 March 2025. Rimol Miljøpark. Photo: Eirik Førde
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16 SWEDEN REVENUE (NOK million) OPERATING PROFIT (NOK million) OPERATING MARGIN (%) KEY FIGURES NOK million 1Q 25 1Q 24 2024 Revenue 960 1,361 5,399 Earnings before financial items and tax (EBIT) 40 2 79 Earnings before tax (EBT) 38 - 65 Operating profit margin 4.2 % 0.1 % 1.5 % Profit margin 3.9 % - 1.2 % NUMBER OF EMPLOYEES AF Gruppen 5,558 ORDER BACKLOG (NOK million) SWEDEN CONSISTS OF • Kanonaden • AF Prefab i Mälardalen • AF Härnösand Byggreturer • AF Bygg Syd • HMB • AF Projektutveckling • AF Bygg Öst • AF Bygg Väst
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17 1ST QUARTER 2025 AF's Swedish activities within civil engineering, construction, property and demolition are all gathered under the business area Sweden. The geographic area of operation encompasses Stockholm, Mälardalen, Southern Sweden and Gothenburg. Sweden reported revenues of NOK 960 million (1,361 million) for the 1st quarter. This corresponds to a decrease in revenue of 2 9% compared with the same quarter last year. Earnings before tax were NOK 38 million (0 million) , with a profit margin of 3.9 % (0.0 %). Kanonaden and AF Prefab in Mälardalen reported very good results in the quarter. HMB delivered slightly below expectations, while AF Härnösand Byggreturer, AF Bygg Syd, AF Bygg Öst, and AF Bygg Väst all had weak results in the first quarter. AF Projektutveckling, AF’s property business in Sweden, had no residential projects under production at the end of the first quarter. AF Projektutveckling has a building site inventory (residential units under construction) that is estimated at 1 ,235 (1,480) residential units. AF’s share of this is 618 (765) residential units. One new contract was reported to the stock exchange in the first quarter. HMB has been awarded the contract to build care homes in Eskilstuna on behalf of Eskilstuna Kommunfastigheter AB. The care homes, named Gillet 1, will consist of a four -storey apartment block with 72 one - room apartments. The project will be carried out as a turnkey contract and is valued at SEK 138 million, excluding VAT. An agreement to build a new wastewater treatment plant in Skåne was announced on the stock exchange on June 20, 2024. In the third quarter of 2024, this agreement was cancelled, and the tender was re -announced. During the first quarter of 2025, AF Bygg Syd was awarded the contract, which is consequently included in the order backlog. Sweden had an order intake of NOK 1,455 million (905 million) in the 1st quarter. The order backlog for Sweden stood at NOK 5,351 million (4,672 million) as at 31 March 2025. Busör ARV in AF Bygg Syd. Photo: Kicki Nilsson
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18 OFFSHORE REVENUE (NOK million) OPERATING PROFIT (NOK million) OPERATING MARGIN (%) KEY FIGURES NOK million 1Q 25 1Q 24 2024 Revenue 261 295 1,081 Earnings before financial items and tax (EBIT) 2 14 -201 Earnings before tax (EBT) -5 7 -236 Operating profit margin 0.9 % 4.7 % -18.6 % Profit margin -2.1 % 2.3 % -21.8 % NUMBER OF EMPLOYEES AF Gruppen 5,558 ORDER BACKLOG (NOK million) OFFSHORE CONSISTS OF • AF Offshore Decom AF Environmental Base Vats • Aeron
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19 1ST QUARTER 2025 AF offers a diverse range of services to the maritime industry, offshore wind, and the oil and gas sector. The services range from the removal and recycling of offshore installations to the construction of new buildings and modification of climate control systems (HVAC). AF has a state-of-the art facility for environmental clean-up at Vats. Offshore had revenues of NOK 261 million (295 million) for the 1st quarter. The business area reported earnings before tax of NOK -5 million (7 million) for the 1 st quarter, that corresponds to a profit margin of -2.1% (2.3%). Aeron had a substantial revenue growth compared with the same quarter last year and delivered a good result for the quarter. AF Offshore Decom saw a lower level of activity in the first quarter compared with the same quarter last year and delivered a weak result for the quarter. AF Gruppen’s services within the removal and recycling of decommissioned oil platforms address an important challenge for society. The aim is to recycle as much of the materials from the decommissioned offshore platforms as possible. Recycling steel from decommissioned oil platforms aligns with key principles of a circular economy and also contributes to significant reductions in greenhouse gas emissions compared to conventional steel production. Two new contracts were reported to the stock exchange in the quarter. Aeron was chosen by the steel manufacturer Stegra to deliver ventilation systems for their new production facility in Sweden. The contract is worth approximately NOK 200 million, excludi ng VAT. AF Offshore Decom received an award letter for a contract regarding the engineering and preparation for removal of three platforms in the UK sector of the North Sea. The client later decided on a different execution model, and the contract will th erefore not be carried out by AF Offshore Decom. The contract, which had an estimated value of NOK 100–125 million excluding VAT, is therefore not included in the order backlog. Offshore had an order intake of NOK 338 million (183 million) in the 1st quarter. The order backlog for Offshore was NOK 1,830 million (1,297 million) as at 31 March 2025. Photo: Aeron
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20 Sletta bridge, Eiqon. Photo: Colin Eick
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21 1ST QUARTER 2025 FINANCIAL INFORMATION AF Gruppen shall have robust financing with respect to operational and market -related fluctuations. The Group ’s goal for return on invested capital is 20%, and its financial position shall underpin the growth strategy and provide an adequate dividend capacity. In the 1st quarter , net operating cash flow was NOK 330 million (128 million) and net cash flow from investments was NOK 22 million (-110 million). Cash flow before capital transactions and financing was NOK 352 million ( 18 million) for the 1st quarter. At the end of the 1st quarter , AF Gruppen had cash and cash equivalents of NOK 1,037 million (348 million). Net interest-bearing debt ( receivables) as at 31 March 2025 was NOK -290 million (974 million). AF Gruppen’s total financing facilities amount to NOK 3,500 million. The financing facilities consist of a multi- currency overdraft facility (rolling 1 -year term) of NOK 2,000 million in DNB and a sustainability-linked revolving long-term credit facility (3+1+1 year maturity) of NOK 1,500, effective from September 2023. Available liquidity as at 31 March 2025, including overdraft facilities with Handelsbanken and DNB, is NOK 4,496 million. Total assets were NOK 15,006 million (15,038 million) as at 31 March 2025. The Group’s equity totalled NOK 3,632 million (3,288 million) as at 31 March 2025. This corresponds to an equity ratio of 24.2% (21.9%). The Group’s equity ratio exclusive the effects of IFRS 16 is 25.5% (23.2%) as at 31 March 2025. THE SHARE AF Gruppen’s shares are listed on the Oslo Børs OB Match List and trade under the ticker AFG. The share is included in the Oslo Børs All Share Index (OSEAX), Benchmark Index (OSEBX), Mutual Fund Index (OSEFX) and the Industrials Index (OINP). SHARE PRICE PERFORMANCE DURING THE LAST 12 MONTHS LIST OF SHAREHOLDERS AS AT 31 MARCH 2025 Name No. Shares % share ØMF HOLDING AS 17,972,233 16.4 OBOS BBL 17,459,483 16.0 CONSTRUCTIO AS 15,338,012 14.0 FOLKETRYGDFONDET 9,179,514 8.4 LJM AS 2,515,217 2.3 ARTEL KAPITAL AS 2,508,267 2.3 ARNE SKOGHEIM AS 1,753,870 1.6 VITO KONGSVINGER AS 1,511,676 1.4 JANIKO AS 1,410,186 1.3 VERDIPAPIRFONDET HOLBERG NORGE 1,284,289 1.2 Ten largest shareholders 70,932,747 64.9 Total other shareholders 38,296,384 35.0 Own shares 60,669 0.1 Total number of shares 109,289,800 100.0
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22 As of 31 March 2025, the AF share had a closing price of NOK 139.40. This corresponds to a return of - 6.1% for the for the 1st quarter. The Oslo Børs Benchmark Index showed a return of 6.4% for the same period. On February 14, 2025, the Board of Directors decided to propose to the General Meeting on May 15, 2025, a dividend of NOK 5.00 (3.50) per share. The dividend is proposed to be entirely distributed as a repayment of share premium and other contributed equity. The share will be traded ex - dividend on 16 May 2025, and the payment is scheduled for 21 May 2025. The number of shares in AF Gruppen is 109,289,800, which corresponds to share capital of NOK 5,464,490. SAFETY AND HEALTH Health, safety and environment (HSE) has high priority in AF Gruppen and is an integral part of all managerial levels. Our priorities and the way we work are intended to ensure a health-promoting and meaningful working environment, with protection against physical and psychological harm. AF has a structured and unified HSE system tha t encompasses all business units and projects. The LTI -1 and LTI- 2 (lost-time injury) rate are important measurement parameters for safety work at AF. These frequencies provide a specific performance description of our safety work. A safe workplace also requires that it is safe for our subcontractors (SC), and we therefore include SC in our safety work and me asurement parameters, including the LTI values. The LTI-1 rate is defined as the number of serious personal injuries and absence injuries per million man-hours. A total of 4 (4) injuries resulting in absence were registered in the 1st quarter. This gives an LTI -1 rate of 0.9 (0.8) for the 1st quarter. The LTI-2 rate is defined as the number of lost time injuries plus the number of injuries requiring medical treatment plus the number of injuries resulting in alternative work per million man -hours. The LTI- 2 rate for the 1st quarter was 7.0 (7.0). Work is being carried out systematically and with a long - term perspective to prevent injuries. Significant resources are being invested to further improve our HSE efforts in order to be able to achieve our goal of zero injuries resulting in absence and ser ious personal injuries. Key to this work is AF's fundamental understanding and acceptance that all injuries have a cause and can, therefore, be avoided. Identifying risk and risk analysis are key elements of our preventive activities. Based on the risk landscape, physical and organisational barriers are established to reduce the risk of accidents in our projects. Key to AF’s HSE culture is having sufficient resources for our projects, and working preventively with HSE efforts is important to prevent incidents from occurring. In preventive work, the transfer of experience and the involvement of employees and the safety service are necessary elements. Among other things, morning meetings and Safetalk (AF’s internal tool for discussions about risk) are used in the projects to prevent adverse events. It is crucial to learn from one’s own mistakes. AF has systematised this through reporting and following up censurable conditions and adverse events, as well as investigating the most serious incidents. Positive conditions are just as important for optimis ing the sharing of experience and are also included as part of this. The number of reports has risen steadily in recent years, and we see a clear correlation between a high reporting rate and a decrease in the number of accidents. The registration of sick leave and investigations regarding work-related absence form much of the basis for health efforts at AF. In the 1st quarter, the sick leave rate was 4.8% (4.5%). Our target is a healthy sick leave level, without work- related sick leave. This requires a high level of expertise and preventive work to ensure that our employees are not exposed to anything that could affect their health in the short or long term. Key to this work are continuous risk LTI-1 RATE DEVELOPMENT LTI-1 RATE
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23 1ST QUARTER 2025 analyses, in which harmful exposure to health is identified and the risk is reduced through physical and organisational barriers. Harmful exposure may include noise, dust, chemicals, biological factors, and ergonomic and psychosocial conditions. An important secondary prevention measure is follow -up on absence due to illness through our managers. This type of follow-up is to ensure that the employee on sick leave is well taken care of and that they work towards returning to work as quickly as possible. CLIMATE AND ENVIRONMENT In the strategy towards 2028, AF has introduced a new main goal of halving its climate and environmental footprint. The climate and environmental strategy has five quantitative objectives that support the main goal of halving the footprint. AF will halve greenho use gas emissions from its own operations (scopes 1 and 2) by 2028 1. In addition, the total greenhouse gas emissions (including scope 3) will be halved by 2030 2. Within the field of circular economy, AF will maintain a source separation rate of over 80%, and at least 70% of non -hazardous waste will be prepared for reuse or material recovery. In addition, the amount of waste sent to energy utilisation or landfill is to be halved by 2030 3. 1) Measured in CO2 equivalents compared to the 2020 base year. 2) Measured in CO2 equivalents per NOK million in revenue compared to the 2024 base year. 3) Measured in tonnes of waste per NOK million in revenue compared to the 2023 base year. Greenhouse gas emissions AF reports its carbon accounts based on the Greenhouse Gas Protocol (GHG), where our own direct and indirect emissions (scope 1 and 2), as well as other selected indirect emissions (scope 3), are measured in tonnes of CO2 equivalents. Greenhouse gas emissions for scopes 1 and 2 are presented quarterly, with 2020 as the base year with 45,020 tonnes of CO 2e. The total carbon accounts, including emissions from scope 3, are prepared annually and presented in our annual report, with 2024 as the base year. Carbon accounts (tonnes CO2e1) YTD 1Q 25 YTD 1Q 24 Scope 1: Direct emissions 9,418 11,543 Scope 2: Indirect emissions, energy 477 720 Greenhouse gas emissions scope 1 and 2 9,895 12,263 1) Greenhouse gas emissions with global warming potential equivalent to CO2 The most important thing AF can do to reduce our own direct emissions is to reduce or change fuel consumption. This can be achieved through effective logistics planning, minimising vehicle and machine idling, optimising the transport of materials, and choo sing electric machines. In addition, increased use of more environmentally friendly fuel types and a modern fleet of machines and vehicles will help further reduce our own greenhouse gas emissions. Circular economy The source separation rate indicates how much of the waste from AF's operations is sorted. In the 1st quarter, the source separation rate for construction was 93% (88%), for rehabilitation it was 96% (86%) and for demolition it was 95% (92%). This corresponds to a source separation rate for the G roup of 95% (91%) in the quarter. In total, 50,267 tonnes (44,096 tonnes) of waste were separated at source in the 1st quarter. The purpose of source separation is to utilise the materials in the waste in the best possible way and to facilitate reuse or material rec overy, in accordance with circular economy principles. AF is actively working on measures in both its own activities and in the value chain to prevent waste from occurring. Good and early planning, use of standardised products, prefabricated elements, and pre-cut materials are important measures that reduce th e amount of waste. For the waste that does occur, AF is working to increase the rate of reuse and material recovery. The utilisation of reuse solutions, supplier agreements, clear waste signage, as SICK LEAVE DEVELOPMENT SOURCE SEPARATION RATE
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24 well as early involvement and collaboration with waste recipients are examples of measures implemented to increase the material recovery rate. Each year, AF delivers services that address environmental challenges and contribute to the transition to a circular economy. AF’s demolition activities generate large amounts of metal waste, especially steel. Most of the steel from the demolition services of AF Decom and AF Offshore Decom is sent to various material rec overy partie s. This contributes to increased circularity and provides great savings in greenhouse gas emissions compared to traditional steel production. AF Offshore Decom and AF Decom facilitated the mat erial recovery of 8,370 tonnes (5,938 tonnes) of metal in the 1st quarter . In total, this represents a reduction of alternative CO 2 emissions by around 14,756 (10,281) tonnes for the 1st quarter. Another example of services that contribute to a circular economy transition is AF’s environmental centres. These centres provide material recovery solutions where large quantities of contaminated material are turned into new products. These materials would have previously gone to landfill, but their lifespan is extended in the e nvironmental centres. This leads to better resource utilisation, which reduces greenhouse gas emissions and increases circularity. In addition, the recycling that takes place in the environmental centres contributes to reduced environmental and ecological impact by decreasing the need for landfills and reducing resource extraction from nature. The environmental centres have re covered 74,900 tonnes (63,923 tonnes) of materials for the 1st quarter . In total, this represents a reduction in alternative CO 2 emissions of 22,844 (19 496) tonnes so far in 2025. ORGANISATION AF Gruppen is working continuously to build a unified corporate culture. Motivated employees and a solid organisation are an important foundation for creating value. At AF, we prioritise building organisations with a good composition of technical expertise and management at all levels. The resources are organised close to production, with project teams where the leaders have significant influence. AF aims to be a company to which talented individuals apply, regardless of gender. A long-term goal is to increase the total proportion of women to 20% and the proportion amongst salaried employees to 40%. This is an ambitious goal. In the 1st quarter the share of women is 10.8 % (9.9 %) in total and 20.9 % (20.0 %) amongst officials. At AF, everyone is equally valued. The working environment shall be inclusive and safe, with a zero tolerance policy towards discrimination and a clear culture where violations have consequences. AF has been working on the diversity project “The best peopl e” since 2018, and as part of the project, the campaign "Of equal value” was launched. The campaign has been very well received in all projects in both our Swedish and Norwegian business units. AF’s work on diversity, including through the Diversitas netwo rk and #EqualityCheck, has contributed to an increased focus on, and changes of attitude in relation to, unconscious bias. AF is also maintaining a high focus on innovation and digitalisation within all our business areas. We are working in a structured manner on how new technology can contribute to increased productivity and minimise risk in our projects, contribute to a safe r daily life for our employees, and not to mention create greater value for our customers. In addition, we are continuously seeking new business models on the periphery of or outside our current core areas. AF Gruppen has its own corporate function for innovation and digitalisation, in addition to a joint venture fund with OBOS for venture capital investments in the building and construction industry (Construct Venture). AF invests significant time and resources in employee development through training within the organisation, experience sharing across the group, and relevant courses such as the AF Academy. The best teams at AF are built with targeted skills development in project management, leadership and technical expertise. An important principle at AF is the internal development and recruitment of leaders, and our employees serve as key ambassadors in attracting new colleagues. At the end of the 1st quarter AF Gruppen had a total of 5,558 (5,824) employees. Of these employees 4,641 (4,766) were employed in Norway, 852 (1,000) in Sweden, 27 (27) in Lithuania, 26 (26) in Germany, 6 (0) in Denmark and 6 (5) in Great Britain. RISK AND RISK MANAGEMENT AF Gruppen is exposed to risks of both an operational and financial nature. Risks are uncertain events or actions that can have a positive or negative effect on project targets, such as time, cost, scope or quality. AF Gruppen’s Board of Directors and management are continuously assessing the situation and implementing any measures that are necessary to ensure adequate liquidity and responsible operations. AF Gruppen wants to take on operational risk that the business units can influence and control. AF gives high
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25 1ST QUARTER 2025 priority to risk management and has good standardised and action -oriented risk management processes. This results in consistent management of risk at all levels of the organisation. Continuous efforts are made to further develop the processes and adapt the m to ensure that risk management is as effective as possible. AF seeks to limit exposure to risk that cannot be influenced, including financial risk. A risk review will be conducted for all projects before a tender is submitted. Analysis of risk during the tendering phase enables the correct pricing and management of risk in the project. The same projects conduct detailed risk reviews every quarter. The Corporate Management Team will participate in risk reviews of all projects with a contract value in excess of NOK 100 million. In connection with the first quarter of 2025, 51 quarterly reviews were also conducted with the business units, with participation from the Corporate Management Team. Financial risk encompasses market risk, credit risk and liquidity risk. Market risk includes commodity price risk, foreign exchange risk and interest rate risk. AF is exposed to foreign exchange risk, including indirectly via suppliers who purchase from ab road, as well as the purchase and leasing of machinery manufactured abroad. As a major demolition and recycling operator, AF Gruppen is also exposed to fluctuations in steel prices. AF aims to maintain low exposure to risks that cannot be influenced and us e hedging instruments to limit the risk associated with currency and commodity prices. AF Gruppen’s financing is based on variable interest rates, and the Group is therefore exposed to interest rate risk. AF has credit risk in relation to customers, suppliers and partners. In addition to the parent company and bank guarantees, the use of credit rating tools contributes to reducing risk. The liquidity risk is considered low. AF Gruppen’s available liquidity, including credit facilities of NOK 3, 500 million, stood at NOK 4,496 million as at 31 March 2025. MARKET OUTLOOK Increased uncertainty and geopolitical unrest characterise the macroeconomic landscape, and persistent inflation and high interest rates are affecting AF Gruppen’s operations in Norway and Sweden. As of March 2025, construction and civil engineering produc tion in Norway measured by Statistics Norway’s production index had fallen by 2.6% in the past 12 months. This is driven by negative developments in the construction segment, while the civil engineering segment has contributed positively. High financing co sts and material prices are reducing the profitability of new projects. Reduced willingness and capacity to invest mean the number of new projects being initiated have declined. On 7 May, Norges Bank decided to keep the key policy rate at 4.5%, unchanged since December 2023. Statistics Norway reported a 2. 5% increase in the consumer price index for the twelve months ending in April . Norges Bank has previously signalled two interest rate cuts during 2025. There is a lot of uncertainty surrounding the global outlook and how this will impact the Norwegian and Swedish economies. On 8 May, the Swedish Riksbank decided to keep the key policy rate at 2.25% due to a largely unchanged outlook on inflation and economic growth despite increased uncertainty. In April, the European Central Bank decided to further lower the deposit rate by 0.25 percentage points to 2.25%. Civil Engineering The civil engineering market has traditionally been less sensitive to cyclical fluctuations, as public sector demand is the strongest driver behind investments in civil engineering. As of April 2024, Prognosesenteret expects a real growth in the construction market in Norway of 2%, 3% and 0% in 2025, 2026, and 2027, respectively. A new NTP (National Transport Plan) was presented in March 2024 and indicates a shift from major investments to smaller investment initiatives, operations and maintenance in the years ahead. The 2025 national budget has allocated NOK 95.2 billion for purposes under the NTP. As of April 2025, Prognosesenteret estimates that the Norwegian construction market experienced a real decline of 2.3% in 2024, with reduced construction investm ents accounting for the decline. Construction investments are also expected to drive growth in 2025 and 2026. The Swedish Construction Federation expects real growth of 5.7% in 2025 and 6.7% in 2026. Statistics Norway’s Construction Cost Index for road construction shows in March that prices have increased over the last twelve -month period. For road construction overall, the increase is 3.2%, and for road operations and maintenance, it is 3.5%, with th e majority of the price growth occurring in the last quarter. Construction and Property High interest rates reduce the profitability of projects and affect the initiation of new projects. As of April 2025, Prognosesenteret estimates that the construction market in Norway had a real decline from 2023 to 2024 of 7.6%. The expected growth in the coming years has been
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26 downgraded due to Norges Bank signalling one less interest rate cut for 2025 in March compared to what was indicated in December. At the same time, construction costs have increased somewhat more than expected. Measured in fixed prices, the production valu e per April is estimated to grow by 3.4%, 5.5%, and 3.0% for 2025, 2026, and 2027, respectively. As of April, the Swedish Construction Federation expects a real growth in construction investments for 2025 and 2026 of 1.3% and 4.6% related to housing, and 2 .4% and 1.0% related to commercial buildings. Prognosesenteret expects the number of started residential units to increase in the coming years, with growth estimated at 23% for 2025, and 9% and 8% for the following years. Prognosesenteret’s estimates for started residential units are based on statisti cs regarding the number of start permits. Market sentiment is resulting in greater uncertainty regarding the estimates for started residential units. The cost development of materials and shipping has been a significant uncertainty factor in recent years. As of March, Statistics Norway’s Construction Cost Index for housing shows that the price level for several materials has increased over the last twelve -month period. Timber and reinforcement steel have both seen particularly high price increases of 13.6% and 8.2%, respectively. Lower growth in wages, concrete, and construction steel has resulted in a total increase of 3.8% in housing construction costs over the past twelve months. Statistics Sweden’s Construction Cost Index shows a weaker development. The monthly report from Real Estate Norway in March shows that nationwide housing prices have increased by 7.0% over the past twelve months. At the beginning of the year, Real Estate Norway estimated a nominal housing price growth of 10% nationwide for 2025, with the highest growth expected in the cities of Oslo, Bergen and Stavanger. In March, Svensk Mäklarstatistik reported a twelve-month price growth in Sweden of 4.2% for apartments and 1.8% for detached houses. Energy and Environment The Norwegian authorities have set ambitious targets for reducing energy consumption in new and existing buildings by 2030. Significant grants for energy efficiency improvements in buildings in the 2025 national budget, along with stricter environmental re quirements for buildings, will provide excellent opportunities for AF Energi in relation to energy efficiency projects. High electricity prices provide incentives for energy efficiency measures, while any decisions regarding fixed prices for individuals could have a dampening effect on these incentives. The market for the development of energy plants is influenced by activity in the new construction market, which is expected to grow in the coming years. The business area’s activity in demolition and material recycling services is closely linked to the construction and civil engineering market, where the level of new construction commencements will affect demand. Services related to rigging and operations have helped us maintain activity in a construction market characterised by reduced activity. Offshore AF Gruppen enjoys a strong position in the North Sea, and demand in the region for expertise and capacity within removal and recycling is expected to increase. The expertise and capacity are also in demand in the global market. In the years leading up to 2030, the British industry organisation Offshore Energies UK (OEUK) expects the annual cost of decommissioning in the North Sea to exceed GBP 2.4 billion. The recent changes in tax regulations in the UK for the oil and gas sector have introduced new challenges regarding the profitability of the industry. Therefore, the decommissioning of older platforms has become a priority. There has been increased activity in the Dutch sector, with the ambition to prepare more offshore portfolios for decommissioning. There has been moderate activity on the Norwegian continental shelf, with an expectation of increased activity closer to 2030. Increased investment in offshore wind also provides new market opportunities for the business area. Oslo, 14 May 2025 Board of Directors of AF Gruppen ASA For more detailed information, please contact: Amund Tøftum, CEO amund.toftum@afgruppen.no | +47 920 26 712 Anny Øen, CFO anny.oen@afgruppen.no | +47 982 23 116 Internet: www.afgruppen.no
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27 1ST QUARTER 2025 Financial information The Engeløy bridge in Nordland. Photo: Max Emanuelson
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28 CONDENSED CONSOLIDATED STATEMENT OF INCOME NOK million 1Q 25 1Q 24 2024 Revenue 7,129 7,187 30,638 Subcontractors -3,432 -3,343 -14,819 Cost of materials -1,155 -1,479 -5,514 Payroll costs -1,554 -1,488 -6,150 Operating expenses ex. depreciation and impairment -600 -544 -2,417 Net gains (losses) and profit (loss) from associates 18 23 112 EBITDA 406 357 1,850 Depreciation and impairment of PPE -90 -62 -310 Depreciation and impairment of right of use assets -92 -94 -388 Amortisation and impairment of intangible assets -1 -1 -3 Earnings before financial items and tax (EBIT) 223 201 1,149 Net financial items -9 -15 -64 Earnings before tax (EBT) 214 186 1,085 Income tax expense -53 -43 -251 Profit for the period 162 143 834 Attributable to: Shareholders in the Parent Company 139 141 708 Non-controlling interests 23 2 126 Profit for the period 162 143 834 Earnings per share (NOK) 1.27 1.30 6.52 Diluted earnings per share (NOK) 1.27 1.30 6.52 Key figures 1Q 25 1Q 24 2024 EBITDA margin 5.7 % 5.0 % 6.0 % Operating profit margin 3.1 % 2.8 % 3.8 % Profit margin 3.0 % 2.6 % 3.5 % Return on capital employed (ROaCE)1) 25.6 % 19.5 % 24.8 % Return on equity 26.2 % 21.0 % 26.3 % Equity ratio 24.2 % 21.9 % 23.2 % Net interest-bearing debt (receivables) 2) -290 974 -99 Capital employed 3) 4,797 4,978 4,800 Order intake 11,010 5,472 28,998 Order backlog 44,232 40,275 40,351 1) Return on capital employed (ROaCE) = (Earnings before tax + interest expense) / average capital employed 2) Net interest-bearing debt (receivables) = Cash and cash equivalents + interest-bearing receivables - interest-bearing debt 3) Capital employed = Equity + interest-bearing debt
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29 1ST QUARTER 2025 STATEMENT OF COMPREHENSIVE INCOME NOK million 1Q 25 1Q 24 2024 Net income for the period 162 143 834 Net actuarial gains and losses - - -1 Currency translation differences non-controlling int. 1 - 1 Items that will not be reclassified to income statement in subsequent periods 1 - 1 Net cash flow hedges 34 -8 -42 Currency translation differences shareholders of the parent 24 2 16 Items that may be reclassified to income statement in subsequent periods 59 -6 -26 Other comprehensive income for the period 60 -6 -25 Total comprehensive income for the period 222 137 809 Attributable to: - Shareholders of the parent 198 135 681 - Non-controlling interests 24 2 128 Total comprehensive income for the period 222 137 809 EQUITY Paid-in capital Translation differences Actuarial pension gain/ (loss) Cash flow hedge Retained earnings Attributable to share- holders Non- controlling interests Total equity NOK million As at 31 December 2023 815 64 -20 -23 1,487 2,323 880 3,203 Comprehensive income - 2 - -8 141 135 2 137 Purchase of treasury shares - - - - -13 -13 - -13 Sale of treasury shares - - - - 6 6 - 6 Dividend paid - - - - - - -50 -50 Share-based remuneration 9 - - - - 9 1 10 Transactions with non-controlling interests - - - - -10 -10 5 -6 As at 31 March 2024 824 66 -20 -31 1,611 2,450 838 3,288 As at 31 December 2024 946 80 -20 -65 1,665 2,606 882 3,488 Comprehensive income - 24 - 34 139 198 24 222 Capital increase - - - - - - - - Purchase of treasury shares - - - - -15 -15 - -15 Sale of treasury shares - - - - 6 6 - 6 Dividend paid - - - - - - -52 -52 Share-based remuneration 10 - - - - 10 1 11 Put options for non-controlling interests - - - - - - -1 -1 Transactions with non-controlling interests - - - - -34 -34 6 -27 As at 31 March 2025 956 104 -20 -31 1,762 2,771 861 3,632
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30 CONSOLIDATED STATEMENT OF FINANCIAL POSITION NOK million 31/03/25 31/03/24 31/12/24 Property, plant and equipment 1,647 1,791 1,685 Right-of-use assets 926 1,024 936 Goodwill 4,630 4,533 4,609 Intangible assets 8 7 9 Investment in associates and joint ventures 627 639 636 Deferred tax asset 227 174 197 Interest-bearing receivables 361 331 341 Pension plan and other financial assets 39 43 39 Total non-current assets 8,465 8,543 8,451 Inventories 500 528 548 Projects for own account 222 195 213 Trade receivables and other current receivables 3,348 3,998 3,276 Contract assets 1,375 1,390 1,445 Interest-bearing receivables 57 36 37 Derivatives 3 - - Cash and cash equivalents 1,037 348 1,033 Total current assets 6,541 6,494 6,552 Total assets 15,006 15,038 15,003 Equity attributable to shareholders of the parent 2,771 2,450 2,606 Non-controlling interests 861 838 882 Total equity 3,632 3,288 3,488 Interest-bearing debt 97 97 96 Lease liability 725 720 712 Retirement benefit obligations 8 8 7 Provisions for liabilities 83 118 100 Deferred tax 606 430 600 Derivatives 5 17 22 Total non-current liabilities 1,524 1,389 1,537 Interest-bearing debt 50 537 188 Lease liability 292 336 315 Trade payables and other current liabilities 6,863 6,947 6,743 Contract liabilities 1,617 1,509 1,698 Derivatives 4 27 36 Provisions for liabilities 897 730 904 Current tax payable 127 274 93 Total current liabilities 9,850 10,360 9,978 Total liabilities 11,374 11,749 11,515 Total equity and liabilities 15,006 15,038 15,003
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31 1ST QUARTER 2025 CONDENSED CONSOLIDATED CASH FLOW STATEMENT NOK million 1Q 25 1Q 24 2024 Earnings before financial items and tax (EBIT) 223 201 1,149 Depreciation, amortisation and impairment 183 156 701 Change in net working capital -25 -158 700 Income taxes paid -45 -58 -298 Net gains (losses) and profit (loss) from associates -16 -23 -112 Other adjustments 11 10 77 Cash flow from operating activities 330 128 2,217 Net investments 22 -110 -226 Cash flow before financing activities 352 18 1,991 Share issue - - 72 Dividends paid to shareholders in the Parent Company - - -380 Dividends paid to non-controlling interests -48 -49 -123 Transactions with non-controlling interests -29 -150 -316 Sale (purchase) of treasury shares -10 -7 -8 Borrowings (repayment) of debt -245 214 -433 Interest and other financial expenses paid -18 -24 -111 Cash flow from financing activities -351 -16 -1,298 Change in cash and cash equivalents with cash effect 1 2 693 Net cash and cash equivalents at the beginning of period 1,033 347 347 Change in cash and cash equivalents without cash effect 3 - -7 Net cash and cash equivalents at the end of period 1,037 348 1,033
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32 BUSINESS AREAS AF Gruppen’s division into operating segments is consistent with the division of the business areas: Civil Engineering, Construction, Betonmast, Property, Energy and Environment, Sweden and Offshore. Segment information is presented in accordance with the AF Gruppen’s accounting policies in accordance with IFRS with the exception of the principles for revenue recognition for residential property development in accordance with IFRS 15. This policy exception applies to the segments Construction, Property and Sweden. Revenue from projects for own account in these segments is not recognised upon handover as regulated in IFRS 15, but in accordance with the degree of completion method. This means that the recognition of revenue in these projects is the product of the degree of completion, sales ratio and expected contribution margin. Segment information is presented in accordance with reporting to the Corporate Management Team and is consistent with the financial information utilised by the Company’s senior decision -makers when evaluating developments and allocating resources. The effect of the deviant application of principles on the consolidated accounts is illustrated in a separate table in the segment information. Additional information on projects for own account is provided in Note 7. Civil Engineering NOK million 1Q 25 1Q 24 2024 External revenue 2,306 1,985 9,418 Internal revenue 60 59 172 Total revenue 2,366 2,044 9,590 EBITDA 161 185 992 Earnings before financial items and tax (EBIT) 65 116 655 Earnings before tax (EBT) 88 131 723 EBITDA-margin 6.8 % 9.0 % 10.3 % Operating margin 2.8 % 5.7 % 6.8 % Profit margin 3.7 % 6.4 % 7.5 % Assets 4,581 4,176 4,778 Order intake 6,584 508 7,883 Order backlog 20,651 16,604 16,433
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33 1ST QUARTER 2025 Construction NOK million 1Q 25 1Q 24 2024 External revenue 2,105 2,202 8,874 Internal revenue 8 1 6 Total revenue 2,114 2,203 8,881 EBITDA 91 87 428 Earnings before financial items and tax (EBIT) 69 64 337 Earnings before tax (EBT) 77 66 351 EBITDA-margin 4.3 % 4.0 % 4.8 % Operating margin 3.3 % 2.9 % 3.8 % Profit margin 3.7 % 3.0 % 4.0 % Assets 5,153 4,983 5,433 Order intake 960 3,386 10,548 Order backlog 9,977 10,647 11,132 Betonmast NOK million 1Q 25 1Q 24 2024 External revenue 1,044 1,001 4,359 Internal revenue - 4 8 Total revenue 1,044 1,005 4,367 EBITDA 46 -16 135 Earnings before financial items and tax (EBIT) 42 -20 120 Earnings before tax (EBT) 55 -11 163 EBITDA-margin 4.4 % -1.6 % 3.1 % Operating margin 4.0 % -2.0 % 2.8 % Profit margin 5.3 % -1.1 % 3.7 % Assets 3,384 3,165 3,366 Order intake 1,171 342 2,996 Order backlog 4,958 5,539 4,831
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34 Property NOK million 1Q 25 1Q 24 2024 External revenue 5 6 23 Internal revenue - - - Total revenue 5 6 23 EBITDA -8 -7 -39 Earnings before financial items and tax (EBIT) -8 -7 -39 Earnings before tax (EBT) -5 -3 -25 EBITDA-margin - - - Operating margin - - - Profit margin - - - Assets 813 881 859 Order backlog - - - Energy and Environment NOK million 1Q 25 1Q 24 2024 External revenue 326 321 1,421 Internal revenue 39 17 89 Total revenue 365 338 1,510 EBITDA 35 34 162 Earnings before financial items and tax (EBIT) 18 17 93 Earnings before tax (EBT) 18 17 90 EBITDA-margin 9.6 % 10.1 % 10.8 % Operating margin 5.0 % 5.1 % 6.2 % Profit margin 4.9 % 5.1 % 5.9 % Assets 1,033 830 1,022 Order intake 436 347 1,455 Order backlog 1,265 1,258 1,194
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35 1ST QUARTER 2025 Sweden NOK million 1Q 25 1Q 24 2024 External revenue 911 1,317 5,234 Internal revenue 49 44 165 Total revenue 960 1,361 5,399 EBITDA 57 19 157 Earnings before financial items and tax (EBIT) 40 2 79 Earnings before tax (EBT) 38 - 65 EBITDA-margin 6.0 % 1.4 % 2.9 % Operating margin 4.2 % 0.1 % 1.5 % Profit margin 3.9 % - 1.2 % Assets 2,647 2,529 2,790 Order intake 1,455 905 5,127 Order backlog 5,351 4,672 4,856 Offshore NOK million 1Q 25 1Q 24 2024 External revenue 261 295 1,077 Internal revenue - - 4 Total revenue 261 295 1,081 EBITDA 12 23 -164 Earnings before financial items and tax (EBIT) 2 14 -201 Earnings before tax (EBT) -5 7 -236 EBITDA-margin 4.4 % 7.8 % -15.1 % Operating margin 0.9 % 4.7 % -18.6 % Profit margin -2.1 % 2.3 % -21.8 % Assets 1,433 1,155 1,422 Order intake 338 183 1,424 Order backlog 1,830 1,297 1,753
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36 Other Segments (Group) NOK million 1Q 25 1Q 24 2024 External revenue 9 22 175 Internal revenue 39 12 55 Total revenue 48 34 229 EBITDA 6 20 89 Earnings before financial items and tax (EBIT) -11 2 15 Earnings before tax (EBT) -58 -33 -135 Assets 2,501 1,852 2,256 Order backlog - - - Eliminations NOK million 1Q 25 1Q 24 2024 External revenue 97 -70 -241 Internal revenue -196 -138 -501 Total revenue -99 -208 -741 EBITDA 8 -1 -2 Earnings before financial items and tax (EBIT) 8 -1 -2 Earnings before tax (EBT) 8 -1 -2 Assets -6,536 -4,452 -6,919 Order backlog -47 -244 -160
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37 1ST QUARTER 2025 GAAP adjustments (IFRS 15) NOK million 1Q 25 1Q 24 2024 External revenue 65 109 299 Internal revenue - - - Total revenue 65 109 299 EBITDA -2 13 92 Earnings before financial items and tax (EBIT) -2 13 92 Earnings before tax (EBT) -2 13 92 Assets -5 -81 -3 Order backlog 246 502 311 Segment total NOK million 1Q 25 1Q 24 2024 External revenue 7,129 7,187 30,638 Internal revenue - - - Total revenue 7,129 7,187 30,638 EBITDA 406 357 1,850 Earnings before financial items and tax (EBIT) 223 201 1,149 Earnings before tax (EBT) 214 186 1,085 EBITDA-margin 5.7 % 5.0 % 6.0 % Operating margin 3.1 % 2.8 % 3.8 % Profit margin 3.0 % 2.6 % 3.5 % Assets 15,006 15,038 15,003 Order intake 11,010 5,472 28,998 Order backlog 44,232 40,275 40,351
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38 NOTES 1. GENERAL INFORMATION AF Gruppen is one of Norway's leading contracting and industrial groups. AF Gruppen is divided into seven business areas: Civil Engineering, Construction, Betonmast, Property, Energy and Environment, Sweden and Offshore. AF Gruppen ASA is a public limited company registered and domiciled in Norway. The head office is located at Innspurten 15, 0663 Oslo. AF is listed on Oslo Børs under the ticker symbol AFG. This summary of financial information for the 1st quarter 2025 has not been audited. 2. BASIS OF PREPARATION The consolidated accounts for AF Gruppen encompass AF Gruppen ASA and its subsidiaries, joint ventures and associated companies. The consolidated financial statements for the 1st quarter 2025 have been prepared in accordance with IAS 34 Interim Accounts. The summary of the financial information presented in the quarterly accounts is intended to be read in conjunction with the annual report for 2024, which has been prepared in accordance with IFRS ® Accounting Standards as adopted by the EU. As a result of rounding off, the numbers and percentages will not always add up to the total. 3. CHANGES IN THE GROUP'S STRUCTURE There have been no material changes in the group´s structure during the year.
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39 1ST QUARTER 2025 4. ACCOUNTING POLICIES Effect of IFRS 16 lease liability AF Gruppen presents figures for the Group as lessee to comply with the accounting principles for IFRS 16. The present value of future rental payments for lease liabilities is recognised in the balance sheet as an interest-bearing loan, and right of use is recognised as a non-current asset, except for short-term or terminable leases. The right of use asset recognised on the balance sheet will be amortised over the agreed term of the lease including any reasonably certain option periods, and interest on the lease liability will be recognised as an interest expense. Both instalments and interest on lease liabilities recognised on the balance sheet are classified as cash flow from financing activities in the cash flow statement. Recognised lease liabilities in the Group affect key figures, including equity ratio and net interest -bearing liabilities, as shown in the following tables. Consolidated statement of income – Effect of IFRS 16 1Q 25 less IFRS 16 Effect of IFRS 16 1Q 25 1Q 24 less IFRS 16 Effect of IFRS 16 1Q 24 2024 less IFRS 16 Effect of IFRS 16 2024 NOK million Operating expenses excl. depr. and impairment -686 87 -600 -631 87 -544 -2,781 365 -2,417 EBITDA 319 87 406 270 87 357 1,485 365 1,850 Depr. and impairment of right-of- use assets -14 -77 -92 -14 -79 -94 -57 -331 -388 Earnings before financial items and tax (EBIT) 214 9 223 193 8 201 1,116 34 1,149 Net financial items - -9 -9 -7 -8 -15 -30 -34 -64 Earnings before tax (EBT) 214 - 214 186 -1 186 1,086 -1 1,085 Income tax expense -52 - -53 -43 - -43 -251 - -251 Net income for the period 161 - 162 144 -1 143 834 -1 834 Consolidated statement of financial position – Effect of IFRS 16 Effect of IFRS 16 Effect of IFRS 16 Effect of IFRS 16 NOK million 31.03.25 less IFRS 16 31.03.25 31.03.24 less IFRS 16 31.03.24 31.12.24 less IFRS 16 2024 Right of use assets 241 685 926 251 772 1,024 237 698 936 Total assets 14,321 685 15,006 14,265 772 15,038 14,305 698 15,003 Total equity 3,653 -21 3,632 3,310 -21 3,288 3,509 -21 3,488 Non current lease liability 171 555 725 181 539 720 147 565 712 Deferred tax 611 -5 606 435 -5 430 605 -5 600 Current lease liability 48 245 292 45 291 336 67 248 315 Total equity and liabilities 14,321 685 15,006 14,265 772 15,038 14,305 698 15,003 Equity ratio 25.5 % - 24.2 % 23.2 % - 21.9 % 24.5 % - 23.2 % Gross interest-bearing debt 365 799 1,165 860 830 1,689 499 813 1,312 Net interest-bearing debt (receivabl.) -1,090 799 -290 144 830 974 -912 813 -99
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40 5. ESTIMATES The preparation of the interim accounts requires the use of assessments, estimates and assumptions that have an effect on the application of accounting principles and recognised figures related to assets and liabilities, revenues and costs. The estimates are based on the management’s best judgement and experience, and there is some uncertainty related to the concurrence of these estimates with the actual result. Estimates and their underlying assumptions are assessed on a continuous basis. Changes in accounting estimates are recognised for the period in which the estimate is changed and for future periods if these are affected by the change in estimate. 6. TRANSACTIONS WITH RELATED PARTIES The Group’s related parties consist of associates, joint ventures, the Company's shareholders, members of the Board of Directors and Corporate Management Team. All business transactions with related parties are carried out in accordance with the arm’s length principle. 7. DEVIANT APPLICATION OF PRINCIPLES IN THE SEGMENT ACCOUNTS The segment information is presented in accordance with the Group's accounting policies in accordance with IFRS except for the principles for revenue recognition for residential property development in accordance with IFRS 15. This policy exception applies to the Construction , Property and Sweden segments. Revenue from projects for own account in these segments is not recognised upon handover as regulated in IFRS 15, but in accordance with the percentage of completion method. This means that revenue and cost for these projects is recognized in proportion with the stage of completion and the sales ratio for the project . The effect of this on the consolidated accounts is illustrated in a separate table in the segment information. The Betonmast segment is reported in accordance with IFRS. To ensure completeness Betonmast’s property projects are included in the table below. The effect of the deviant application of principles in the segment accounts with respect to earnings before tax is NOK - 2 million (13 million) for the 1st quarter 2025. The effect on equity was NOK - 5 million ( -82 million), and the accumulated reversed revenues were NOK 246 million (502 million) as at 31 March 2025. The table on the next page shows residential housing projects for our own account that are in the production phase. Contractor values have been included in those cases where group companies are the contractor.
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41 1ST QUARTER 2025 AF's construction value1) Number of housing units Construction period Owner- ship share AF Property projects for own account Total number Hereof transferred in 2024 Hereof completed not transf. Hereof not sold Start up Completion Skårersletta Midt 1-4, Lørenskog 842 295 6 52 43 Q3 2021 Q4 2024 50% Fyrstikkbakken Hus A-D, Oslo 472 161 1 14 11 Q2 2021 Q1 2024 50% Rolvsrud Arena trinn 1, Lørenskog 299 95 2 21 20 Q2 2022 Q3 2024 33% Total completed earlier years - Property2) 1,613 551 9 87 74 Snipetorp, Skien - 16 1 2 2 Q3 2018 Q2 2020 50% 2317 Sentrumskvartalet A-D, Hamar 296 121 - 2 1 Q2 2020 Q1 2023 50% SPG Bostader Linden, Strömstad3) 154 162 - 162 - Q4 2021 Q3 2023 45% SPG Bostader Häggen, Strömstad3) 89 94 - 94 - Q2 2022 Q3 2023 45% Klosterøya Vest 4, Skien - 69 - 9 7 Q1 2021 Q1 2023 24% Veum Hageby Tunet, Fredrikstad - 15 - 2 2 Q2 2023 Q3 2024 30% Total completed earlier years - Betonmast2) 539 477 1 271 12 BRF Prefekten, Mölndal 130 83 5 3 - Q4 2021 Q1 2024 50% Total completed earlier years - Sweden 130 83 5 3 - Rolvsrud Arena trinn 2 og 3, Lørenskog 312 99 70 29 26 Q4 2022 Q1 2025 33% Total completed 2025 - Property 312 99 70 29 26 Rolvsrud Arena trinn 4, Lørenskog 110 35 - - 23 Q3 2023 Q3 2025 33% Rolvsrud Arena trinn 5, Lørenskog 189 60 - - 40 Q1 2024 Q4 2025 33% Total in production - Property 299 95 - - 63 Veum Hageby Tunet, Fredrikstad - 4 - - 2 Q3 2024 Q2 2025 30% Total in production - Betonmast - 4 - - 2 1) NOK million excl. VAT 2) Only projects with not sold or not transferred units as at year end 2024 are included. 3) Apartments for rental ("hyresrett"). Will be sold collectively when shares are transferred from property development company. 8. EVENTS AFTER THE BALANCE SHEET DATE There have been no events since the end of the quarter that would have had a material effect on the quarterly financial statements.
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42 E6 Roterud-Storhove. Photo: AF Gruppen
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43 1ST QUARTER 2025 ALTERNATIVE PERFORMANCE MEASURES AF Gruppen presents alternative performance measures as a supplement to performance measures that are regulated by IFRS. The alternative performance measures are presented to provide better insight into and understanding of the operations, financial standing and foundation for development going forward. AF Gruppen uses alternative performance measures that are commonly used in the industry and among analysts and investors. Return on capital employed (ROaCE): This performance measure provides useful information to both AF's management and Board of Directors, as well as to investors concerning the results that have been achieved during the period under analysis. AF uses the performance measure to calculate the return on capital employed, regardless of whether the financing is through equity capital or debt. Use of the performanc e measure should not be considered an alternative to performance measure calculated in accordance with IFRS, but as a supplement. The alternative performance targets are defined as follows: EBITDA: Earnings before i) taxes, ii) net financial items, iii) depreciation and amortisation. Operating profit (EBIT): Earnings before i) taxes, ii) net financial items. EBITDA margin: EBITDA divided by revenue. Operating margin: Operating profit (EBIT) divided by revenue. Profit margin: Earnings before tax divided by revenue. Gross interest-bearing debt: Sum total of long-term interest-bearing loans and credits and short-term interest-bearing loans and credits. Net interest-bearing debt (receivables): Gross interest-bearing debt less i) long-term interest-bearing receivables, ii) short-term interest-bearing receivables and iii) cash and cash equivalents. Capital employed: Sum total of shareholders' equity and gross interest-bearing debt. Average capital employed: Average capital employed in the last four quarters. Return on capital employed (ROaCE): Earnings before taxes and interest expenses divided by the average capital employed. Equity ratio: Shareholders' equity divided by total equity and liabilities. Average shareholders' equity: Average shareholders' equity in the last four quarters. Return on equity: Earnings divided by average shareholders' equity. Order intake: Estimated value of contracts, contract changes and orders that have been agreed upon during the reporting period. Order backlog: Remaining estimated value of contracts, contract changes and orders that have been agreed upon, but have not been earned by the reporting date. The table below shows the reconciliation of alternative performance targets with line items in the reported financial figures in accordance with IFRS. NOK million 31/03/25 31/03/24 31/12/24 GROSS INTEREST-BEARING DEBT / NET INTEREST-BEARING DEBT Non-current interest-bearing debt 97 97 96 Non-current interest-bearing debt - lease liability 725 720 712 Current interest-bearing debt 50 537 188 Current interest-bearing debt - lease liability 292 336 315 Gross interest-bearing debt 1,165 1,689 1,312 Less: Non-current interest-bearing receivables -361 -331 -341 Current interest-bearing receivables -57 -36 -37 Cash and cash equivalents -1,037 -348 -1,033 Net interest-bearing debt (receivables) -290 974 -99
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44 NOK million 31/03/25 31/03/24 31/12/24 CAPITAL EMPLOYED Total equity 3,632 3,288 3,488 Gross interest-bearing debt 1,165 1,689 1,312 Capital employed 4,797 4,978 4,800 AVERAGE CAPITAL EMPLOYED Capital employed as at 2nd quarter 2023 - 5,293 - Capital employed as at 3rd quarter 2023 - 5,224 - Capital employed as at 4th quarter 2023 - 4,540 - Capital employed as at 1st quarter 2024 - 4,978 4,978 Capital employed as at 2nd quarter 2024 4,653 - 4,653 Capital employed as at 3rd quarter 2024 4,834 - 4,834 Capital employed as at 4th quarter 2024 4,800 - 4,800 Capital employed as at 1st quarter 2025 4,797 - - Average capital employed 4,771 5,009 4,816 RETURN ON CAPITAL EMPLOYED Earnings before tax 2nd quarter 2023 - 292 - Earnings before tax 3rd quarter 2023 - 103 - Earnings before tax 4th quarter 2023 - 292 - Earnings before tax 1st quarter 2024 - 186 186 Earnings before tax 2nd quarter 2024 21 - 21 Earnings before tax 3rd quarter 2024 289 - 289 Earnings before tax 4th quarter 2024 589 - 589 Earnings before tax 1st quarter 2025 214 - - Earnings before tax last four quarters 1,113 873 1,085 Interest expense 2nd quarter 2023 - 32 - Interest expense 3rd quarter 2023 - 27 - Interest expense 4th quarter 2023 - 21 - Interest expense 1st quarter 2024 - 24 24 Interest expense 2nd quarter 2024 30 - 30 Interest expense 3rd quarter 2024 29 - 29 Interest expense 4th quarter 2024 29 - 29 Interest expense 1st quarter 2025 19 - - Interest expense last four quarters 106 103 112 Earnings before tax and interest expense last four quarters 1,220 977 1,197 Divided by: Average capital employed 4,771 5,009 4,816 Return on capital employed 25.6 % 19.5 % 24.8 %
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45 1ST QUARTER 2025 NOK million 31/03/25 31/03/24 31/12/24 EQUITY RATIO Total equity 3,632 3,288 3,488 Divided by: Total equity and liabilities 15,006 15,038 15,003 Equity ratio 24.2 % 21.9 % 23.2 % AVERAGE Total equity Total equity as at 2nd quarter 2023 - 2,897 - Total equity as at 3rd quarter 2023 - 2,973 - Total equity as at 4th quarter 2023 - 3,203 - Total equity as at 1st quarter 2024 - 3,288 3,288 Total equity as at 2nd quarter 2024 2,844 - 2,844 Total equity as at 3rd quarter 2024 3,051 - 3,051 Total equity as at 4th quarter 2024 3,488 - 3,488 Total equity as at 1st quarter 2025 3,632 - - Average total equity 3,254 3,090 3,168 RETURN ON EQUITY Net income 2nd quarter 2023 - 227 - Net income 3rd quarter 2023 - 78 - Net income 4th quarter 2023 - 200 - Net income 1st quarter 2024 - 143 143 Net income 2nd quarter 2024 14 - 14 Net income 3rd quarter 2024 222 - 222 Net income 4th quarter 2024 455 - 455 Net income 1st quarter 2025 162 - - Net income for the last four quarters 853 648 834 Divided by: Average equity 3,254 3,090 3,168 Return on equity 26.2 % 21.0 % 26.3 %
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46 jpszjpsz Helsfyr Atrium. Photo: Hans Fredrik Asbjørnsen
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47 1ST QUARTER 2025 COMPANY INFORMATION AF Gruppen ASA Financial calendar Head office: Innspurten 15 0603 Oslo Tel +47 22 89 11 00 Postal address: Postboks 6272 Etterstad 0603 Oslo Norway Company’s Board of Directors Morten Grongstad, Board Chairman Hege Bømark Kristian Holth Saloume Djoudat Erik Tømmeraas Veiby Hilde Kristin Herud Marianne Gjertsen Ebbesen Hilde Wikesland Flaen René Elkjær Kristensen Espen Jahr Presentation of interim accounts: 15/05/2025 Interim report 1st quarter 2025 29/08/2025 Interim report 2nd quarter 2025 14/11/2025 Interim report 3rd quarter 2025 The presentation of the interim report for 1st quarter 2025 takes place at Helsfyr Atrium, Innspurten 15, at 8:30 a.m. For more information on the company, visit our web site at afgruppen.com Cover: AF Decom decommissioning the Engeløy bridge in Nordland Photo: Max Emanuelson Corporate Management Amund Tøftum, CEO Anny Øen, CFO Geir Flåta, EVP Civil Engineering and Property Bård Frydenlund, EVP Sweden and Betonmast Eirik Wraal, EVP Construction, Energy and environment Tormod Solberg, EVP Construction Lars Myhre Hjelmeseth, EVP Offshore
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48 Civil Engineering Construction Betonmast Property Energy and Environment Sweden Offshore AF Anlegg AF Anläggning JR Anlegg Målselv Maskin & Transport Stenseth & RS Eiqon VSP Consolvo Protector Fjerby Rakon AF Byggfornyelse AF Bygg Oslo AF Bygg Østfold Haga & Berg Haga & Berg Service Haga & Berg Entreprenør Oslo Brannsikring Strøm Gundersen Strøm Gundersen Vestfold AF Håndverk Thorendahl Oslo Stillasutleie Storo Blikken- slagerverksted VD Vindu og Dør montasje Lasse Holst Kirkestuen Betong & Tre LAB Entreprenør Helgesen Tekniske Bygg Åsane Byggmester forretning Fundamentering Betonmast Oslo Betonmast Romerike Betonmast Buskerud- Vestfold Betonmast Boligbygg Betonmast Trøndelag Betonmast Røsand Betonmast Innlandet Betonmast Asker og Bærum Betonmast Østfold Betonmast Eiendom AF Eiendom LAB Eiendom AF Decom Jølsen Miljøpark Rimol Miljøpark Nes Miljøpark AF Energi AF Energija Baltic Enaktiva ETA Norge Mepex Kanonaden Kanonaden Entreprenad Bergbolaget i Götaland Kanonaden Mälardalen AF Prefab i Mälardalen AF Härnösand Byggreturer AF Bygg Syd HMB HMB Construction HMB Construction Örebro AF Projektutveckling AF Bygg Öst AF Bygg Väst AF Offshore Decom AF Environmental Base Vats Aeron OPERATIONAL STRUCTURE