Annual Report

ANNUAL REPORT Infratek Group AS 2015 Infratek Group – Table of contents Page Board of Director’s Report 3 Income Statement 8 Balance Sheet 9 Cash Flow Statement 10 Changes in Equity 11

Notes Infratek Group Note 1 – General information 12 Note 2 – Summary of significant accounting principles 12 Note 3 – Financial risk management 17 Note 4 – Important accounting estimates and assumptions 20 Note 5 – Business segment reporting 21 Note 6 – Property, plant and equipment 23 Note 7 – Intangible assets 24 Note 8 – Construction contracts 25 Note 9 – Inventory 25 Note 10 – Other long-term receivables 25 Note 11 – Accounts receivable and other receivables 25 Note 12 – Cash and cash equivalents 26 Note 13 – Additional equity specifications 26 Note 14 – Accounts payable and other current liabilities 26 Note 15 – Long-term debt 27 Note 16 – Deferred tax 27 Note 17 – Pension expenses, assets and liabilities 28 Note 18 – Transactions with related parties 32 Note 19 – Other operating expenses 32 Note 20 – Salaries and other personnel expenses 32 Note 21 – Remuneration to board and group management 33 Note 22 – Financial income and expense 33 Note 23 – Tax expense 34 Note 24 – Discontinued operations 34 Note 25 – Provisions 35 Note 26 – Contingent liabilities 35 Note 27 – Sbsequent events 36 Note 28 – Companies included in the consolidation of the group 36

Infratek Group AS – Company Accounts Income Statement 38 Balance Sheet 39 Cash Flow Statement 40 Note 1 – Accounting principles 41 Note 2 – Personnel and other operating expenses 42 Note 3 – Financial income/expenses 42 Note 4 – Tax expense 42 Note 5 – Investment in subsidiaries 43 Note 6 – Related parties 43 Note 7 – Liabilities 44 Note 8 – Equity 44 Declaration 44

Independent auditor’s report 45 The Board of Directors report

Efforts to further develop Infratek Group have continued during 2015. The main focus has been streamlining of the business and improvement initiatives to achieve operational excellence.

The numbers for 2015 show that Infratek Group has succeeded to improve in several areas. For the coming years, this work will continue but more attention will be given to growth. In 2015 the group initiated negotiations regarding the acquisition of the Finnish Distribution Grids company Pohjolan Werkonrakennus Oy (“PWR”) and closed the transaction on 7 January 2016. The acquisition of the business will further contribute to the development of a strong independent service provider in the market of building, operating and maintaining critical infrastructure in the Nordic countries.

Result for the year and financial matters consolidated financial statements The consolidated financial statements for Infratek Group AS are presented for 1 January to 31 December 2015 with comparative figures for 1 January to 31 December 2014.

The Group’s operating revenues came in at NOK 2 712 million for 2015 (NOK 2 773 million in 2014). The Group posted an operating profit of NOK 161 million (NOK 151 million). Profit after tax and discontinued operations ended at NOK 70 million compared to NOK 91 million in 2014. Last year’s profit included a gain of NOK 35 million related to the divestment of Infratek’s business within Security-Technical Solutions in June 2014.

The operating margin for the year 2015 came in at 5.9 per cent (5.4 per cent). The operations in the geographical segments Norway, Sweden and Finland returned respectively an operating margin of 8.5 per cent (14.1 per cent), 5.0 per cent (1.2 per cent) and 10.6 per cent (10.7 per cent) in 2015 (2014). The business segment Other returned a negative operating profit of NOK 25.2 million (NOK 43.6 million). The Group’s operating profit in 2014 was influenced by restructuring expenses, as well as material impact from change in pension plans. Adjusted for non-recurring items totaling a positive effect of NOK 27 million, underlying operations showed a profit of NOK 124 million in 2014 and an adjusted profit margin of 4.5 per cent.

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by EU. There were no material changes in accounting policies during the year affecting the Group’s consolidated financial statements.

Equity base and long-term debt The Group has a capital structure with NOK 432 million (NOK 295 million) in Equity and NOK 1 368 million (NOK 1 331 million) in debt at year end. In May 2014, the group successfully issued a bond of NOK 650 million with the duration of 5 years. The bond was listed on the Oslo Stock exchange on 17 December 2014. See note 15 in the consolidated financial statements for further information related to the bond.

Cash flow Net cash holdings and cash equivalents as of 31 December 2015 amounted to NOK 357 million (NOK 175 million). The Group has also a NOK 100 million credit facility with Swedbank consisting of a 20 million overdraft facility and 80 million revolving credit facility. At year-end the credit facility was undrawn.

The net cash flow from operations amounted to NOK 219 million (NOK 81 million).The difference between operating profit and cash flow from operations is mainly due to differences between cost of pensions and cash flow related to pension payments.

Net cash flow from investing activities amounted to NOK -2 million (NOK -275 million) in 2015. NOK 10 million (29 million) was invested in new operating assets during the year, primarily relating to the purchase of machinery and special vehicles. Standard vehicle are leased. In 2014 cash flow from investing was affected with NOK 234 million related to the acquisition of the minority shares of the business.

The cash flow from financing activities amounted to NOK -43 million (NOK 170 million). Cash Flow from financing activities was in 2015 entirely attributable to interest payment, while previous year was additionally positively affected by NOK 236 million related to the issue of a bond net of repayment of other long- and short-term debt. Interest payments in 2014 were net NOK 66 million.

Result for the year and financial matters statutory accounts Infratek GroupAS Infratek Group AS is a holding company with no employees and was established 28 May 2013. The assets mainly consists of shares in subsidiaries, deferred tax asset and receivable group contribution, while financing is through equity, bond and other long- term loans, as well as short term liabilities.

3 Equity was NOK 253 million (NOK 192 million) relative to NOK 703 million (NOK 696 million) in long-term debt and NOK 186 million (NOK 29 million) in short-term debt at year end.

The result for 2015 was NOK 196.0 million compared to a loss of NOK 38.4 million in 2014. The company has no revenue and the company’s result mainly consists of interest expenses and financial income from group contribution.

The accounts have been prepare in accordance with the Norwegian accounting law and generally accepted accounting principles in Norway (NGAAP).

Going concern The consolidated financial statements for Infratek Group, as well as the statutory accounts for Infratek Group AS have been prepared in accordance with the going concern principle. The board of directors confirms that the basis for the going concern assumption is present.

Infratek’s business concept and vision to be continued Infratek builds, operates and maintains critical infrastructure in line with the vision: “Together we shall deliver and become a leading Nordic player”. This strategy will be continued in 2016. Through the Group’s core values of presence, job satisfaction and movement, Infratek shall create a business culture that contributes to the achievement of the Group’s targets and ambitions.

The business areas Infratek Group defines its corporate structure to consist of three business segments; Norway, Sweden and Finland. Per year-end the Group employs 554 (603) in Norway, 533 (618) in Sweden and 99 (113) employees in Finland. In Norway, 26 (29) staff are employed with Infratek AS which constitutes the support functions part of the other/group segment. The Group is headquartered in Oslo.

Norway Operations in Norway are organized within the areas Electrical Grids, Electrical Safety and Infra Solutions. Electrical Grids is aimed at the product area distribution grids, transmission grids, transformer stations and power cables. Electrical Safety provides inspection and monitoring services on behalf of grid companies. Infra Solutions offers services within street and tunnel lighting, project and metering.

The Norway business area achieved the following results in 2015: - Operating revenues: NOK 1 010 million (NOK 1 066 million) - Operating profit: NOK 86 million (NOK 150 million) - Operating margin: 8.5 per cent (14.1 per cent) - Adjusted operating margin: 8.6 per cent (9.5 per cent)

The operating profit and operating margin in Norway for 2015 is regarded as satisfactory.

Sweden Operations in Sweden are organized within the areas Electrical Grids, Projects and Railway. Electrical Grids is aimed at the product areas distribution grids, transmission grids, transformer stations, services within street lighting and metering. Projects operates as an end-to-end supplier of projects within the high voltage electrical infrastructure, while Railway delivers services to constructors and owners of infrastructure for railway.

The Sweden business area achieved the following results in 2015: - Operating revenues: NOK 1 429 million (NOK 1 479 million) - Operating profit: NOK 72 million (NOK 18 million) - Operating margin: 5.0 per cent (1.2 per cent) - Adjusted operating margin: 5.0 per cent (1.2 per cent)

The operating profit and operating margin in Norway for 2015 is regarded as satisfactory.

Finland Operations in Finland comprise of services and products aimed at the central transmission grid, especially related to transformer stations.

The Finland business area achieved the following results in 2015: - Operating revenues: NOK 274 million (NOK 238 million) - Operating profit: NOK 29 million (NOK 25 million) - Operating margin: 10.6 per cent (10.7 per cent) - Adjusted operating margin: 10.8 per cent (10.7 per cent)

The operating profit and operating margin in Finland for 2015 is regarded as satisfactory.

4 Discontinued operations On 30 June 2014, the business area Security – Technical Solutions was disposed of. In the comparable numbers for 2014, the profit for the year and the net gain from the sale of the business area are included in the item “Profit (loss) for the period from discontinued operations” in the consolidated income statement with NOK 35 million.

Other The “Other” business area comprises Group administration and expenses relating to group-level functions. Operating loss for the period was NOK 25 million compared to loss of NOK 44 million in 2014. 2014 numbers are negatively impacted by non-recurring items amounting to NOK 22 million.

Personnel, working environment and equality Infratek accords high importance to promoting its employees’ professional and personal development. The Group will continue to retain, develop and attract the market’s leading specialists. Continued availability of critical expertise within technical areas when seen in light of future retirements is a challenge. The ability to attract new employees and retain existing core expertise will be essential for Infratek’s development over the next five years. These issues have been placed at the top of the Group’s personnel policy agenda.

At the end of 2015 the Group employed 1 186 employees, compared to 1 334 employees at the end of the previous year, a year- on-year decrease of 148.

The Group’s business has a technical emphasis and is male-dominated. Infratek aims to achieve a more equal gender balance and seeks to employ staff of varied experience, age and interests. At the end of 2015, 8.0 per cent of the company’s employees were women compared to 8.2 per cent at the end of 2014.

The Board of directors of Infratek Group AS consists of three members. Operational matters within the group are processed by the board of Infratek AS which consists of eight members.

The Group is working actively with targeted and systematic efforts to prevent discrimination based on ethnicity, national origin, ancestry, skin color, language, religion and beliefs. These activities include recruitment, wages and working conditions, promotion, development opportunities and protection against harassment.

The Group strives to be a workplace where there is no discrimination on grounds of disability. The Group is working actively and making targeted efforts to design and facilitate physical conditions such that the company’s various functions can be used by as many people as possible. For employees or applicants with disabilities, the workplace and job responsibilities are adapted to suit the individual on a case-by-case basis.

For the board’s statement on salaries and other remuneration paid to senior executives, see Note 21, which is deemed an integral part of the Report from the Board of Directors.

External environment Sound environmental management is an important part of Infratek’s social responsibility initiatives. At the heart of the Group’s environment policy is the idea that principles of sustainability shall underpin the further development of its business, products and services. Infratek is certified to the ISO 14001 environmental standard.

Infratek’s impact on the external environment primarily relates to management of waste and use of transport means. The Group has waste management agreements which ensure that waste from our activities is collected and treated in the best possible way for the environment. The Group continues to work to make its vehicle fleet more efficient and renew it with more environmentally friendly vehicles. Infratek shall therefore use modern vehicles with low CO2 emissions, and the Group’s target is not to use service vehicles older than five years.

To boost each individual employee’s competence and awareness of environmental issues, Infratek implemented a mandatory environmental e-learning program for all Group employees. All new Infratek employees will also undergo the same training.

5 Health, safety and the environment Employee health, welfare and safety always comes first. Infratek has signed up to the government’s inclusive working life (IA) scheme in spring 2005, and continuously strives to offer training and to raise the awareness of managers with respect to HSE, and to develop the Group’s health and safety organization. In 2015, Infratek had an H-value of 11.6, at the end of 2014 the H-value was 7.9. Although the H-value increased compared to previous year, the Group is experiencing a decrease in serious incidences. Infratek believes that this is the result of high safety focus. The Group has developed overarching targets for all managers in the Group geared toward preventive measures to avoid accidents. All serious incidences are investigated by an internal safety commit- tee and lessons learned and initiatives are communicated to all divisions. Additionally, improvement is made in the risk assessment process in project planning which is continuously followed up by internal audit.

The sickness absence rate has increased in 2015 with an average sick leave rate of 4.9 per cent compared to 3.9 per cent in 2014. The absence rate in the legal units and countries varied from 1.8 per cent to 7.0 per cent. The various companies work with both public and private health companies to identify and implement measures to reduce sickness absence. Infratek experiences that the highest sickness absence rate is amongst fitters mainly due to demanding working postures. Focus is therefore given to preventive initiatives as exercise, advice on correct working postures as well as nutrition. Infratek aims to increase its cooperation with the industrial health service on that matter.

Risk and internal controls The Group is exposed to risk along the entire value chain. The board is focused to secure systematic and concerted management of risk in the business, and regards this as critical for long-term value creation. Risk management is an integral part of business processes and is monitored within the respective business areas through procedures for assessing and monitoring risk. The board reviews Infratek’s risk exposure based on an annual survey of the risks attaching to the Group’s activities.

Infratek has implemented a common management system which defines the Group’s shared processes and guidelines intended to secure an effective control environment that meets management’s objectives and intentions. The company is endeavoring to reinforce and systemize internal controls on financial reporting in the Group. The system shall secure reliable accounting information in monthly, quarterly and annual reports.

Infratek is primarily exposed to risk factors connected to financial and market conditions, operating activities, project implementation and consequences of changes in political and financial framework conditions.

Market and financial risk Infratek is exposed to significant competition in all its business areas, and all contracts are obtained through tendering.The Group’s ability to compete is therefore important for future development and earnings. Infratek’s business is labour-intensive and consequently, developments in areas such as access to human resources, future salary changes and loss of key staff could affect the Group’s results.

Major seasonal fluctuations result in poor capacity utilization and low operating margins in periods of low activity. A major loss of customers, reduced ability to pay or lower investment levels among Infratek’s customers, project delays, operation stoppages or reduced access to goods or services could all result in reduced profitability and affect the Group’s reputation.

Credit, liquidity and foreign currency risk Infratek’s activities primarily target the business market and the number of customers is controllable. Historically Infratek’s bad debt exposure has been insignificant. The group has some dependencies on a few large customers.

Interest rate risk primarily relates to the Group’s interest expenses on the Group’s Bond and other interest-bearing debt net of interest income on cash holdings. The Group enjoys sound access to liquidity, and has positive cash holdings and an unutilized credit facility of NOK 100 million. Loan covenants are attached to the Group’s credit facility and bank guarantees, which are to be measured on Infratek AS consolidated accounts. Infratek operates in Norway, Sweden and Finland, but the Group’s reporting currency is NOK. The company is therefore exposed to currency fluctuations from SEK and EUR to NOK. The Group purchases goods in foreign currency to a limited extent. The Group’s liquidity, credit and foreign currency risk is considered to be manageable.

Operational risk All processes in the value chain are exposed to operational risk. This is most notably the case with regard to operating activities and project implementation. This may result in: - Injuries to employees - Damage to the environment - Damage to company or third-party assets

The Group has taken out insurance to cover all material types of damage and injuries. Operational risk is managed through detailed procedures for activities in all operational units and various types of contingency plans. Infratek has an extensive system for record- ing and reporting hazardous conditions, undesired events and injuries/damage. These are analyzed on an ongoing basis in order to prevent and restrict any consequences, and to ensure the Group to be able to follow up causal relationships and take appropriate measures.

6 Regulatory risk The Group’s activities are subject to legislation and statutory regulations governing areas such as health, safety and the environment. Some areas of the Group’s activities also require a government authorization. Changes in regulatory conditions affecting opportunities or requirements to purchase services from third parties could also affect activities. Construction of new infrastructure and maintenance of existing infrastructure is to some extent regulated by public authorities. Changes in prevailing legislation and regulations could impact demand for and profitability of Infratek’s services.

Corporate Governance Infratek’s corporate governance policy is based on the Norwegian Code of Practice for Corporate Governance, Infratek’s articles of association, strategy and accords with legislation and rules for Norwegian listed companies. The Group’s policies and procedures for corporate governance are approved by the Board of Directors and published on the Group’s homepage; see Infratek.no/investor for more information. Separate guidelines have also been prepared describing the Group’s work on anti-corruption, anti-bribery and anti-trust.

Ownership structure and shareholder issues Per 31. December 2015 the Infratek Group AS’s share capital totaled NOK 34 100 allocated to 31 shares. All shares are owned by Heraldic Midco s.a.r.l.

Dividend and allocation of profit for the year in the parent company Infratek Group AS’ result for 2015 ended at NOK 196 million. The board proposes a dividend of NOK 135 million, while NOK 61 million is proposed allocated to other equity.

Subsequent events As per 7 January 2016 Infratek acquired Pohjolan Werkonrakennus Oy (“PWR”) in Finland. The acquired company has 150 employees and had a turnover of EUR 18 million during its last financial year. PWR was established in 2006 and operates across the middle part of Finland. Infratek and PWR will be a very strong combination since the new company complements Infratek’s existing activities in Finland and gives Infratek presence in the Finnish distribution grid market.

Outlook for 2016 The overriding aim is to strengthen Infratek’s position in the market for critical infrastructure - through profitability and growth. The board of directors believes that Infratek is well equipped to develop the Group further in this direction.

An increased efficiency in operations has boosted Infratek’s competitiveness, while the award of several strategically important and long-term contracts has reinforced the Group’s market position.

The acquisition of Pohjolan Werkonrakennus Oy (“PWR”) strengthens Infratek’s market position in Finland by complementing Infratek’s existing activities in Finland.

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THE BOARD OF DIRECTORS OF INFRATEK GROUPTHE AS BOARD OF DIRECTORSTHE BOARD OF INFRATEKOSLO, OF DIRECTORS 25 APRIL GROUP 2016OF AS INFRATEK GROUP AS OSLO, 25 APRIL 2016 OSLO, 25 APRIL 2016 THE BOARD OF DIRECTORSTHE OF BOARD INFRATEK OF DIRECTORS GROUP ASTHE OF BOARD INFRATEK OF DIRECTORS GROUP AS OSLO,OF INFRATEK 25 APRIL GROUP 2016 AS OSLO, 25 APRIL 2016 OSLO, 25 APRIL 2016

Carl Johan Falkenberg PetterCarl Darin Johan Falkenberg Carl Johan CarlFalkenberg Johan Petter Renvall Darin Petter Darin Carl Johan Renvall Carl Johan Renvall Carl Johan Falkenberg Carl Johan Falkenberg Petter DarinCarl Johan Falkenberg Petter Darin Carl Johan Renvall Petter Darin Carl Johan Renvall Carl Johan Renvall Board chairman Board Boardmember chairman Board chairman Board member Board member Board member Board member Board member Board chairman Board chairman Board memberBoard chairman Board member Board member Board member Board member Board member

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1 JANUARY - 31 DECEMBER Amounts in million NOK Note 2015 2014 Operating revenues 5,8 2 712 2 773 Purchased materials 9 (1 276) (1 368) Salaries and other personnel expenses 17,20,21 (929) (891) Depreciation and amortization 6,7 (38) (36) Other operating expenses 6,19 (308) (327) Operating profit 161 151 Financial income 22 1 6 Financial expenses 22 (57) (69) Net financial income (expenses) (57) (63) Profit (loss) before tax and discontinued operations 105 88 Tax expense 23 (34) (32) Profit (loss) for the period from continuing operations 70 56 Profit for the period from discontinued operations 24 - 35 Profit (loss) for the period 70 91

Other comprehensive income Items that will be recycled subsequently to profit or loss Exchange differences on translating foreign operations 43 27 Exchange differences reclassified from equity to profit or loss on disposal 24 - (3) Items that will not be recycled subsequently to profit or loss Change in actuarial gains and losses pensions 17 34 (28) Tax expense on other comprehensive income 16,17 (9) 8 Other comprehensive income for the period 68 4 Total comprehensive income for the period 138 95

Profit (loss) for the period attributable to: Parent company shareholders 70 92 Non-controlling interests - (1) Profit (loss) for the period 70 91

Total comprehensive income attributable to: Parent company shareholders 138 96 Non-controlling interests - (1) Total comprehensive income for the period 138 95

Note 1-28 are presented on the page following the financial statements and integral to them.

8 Balance Sheet Group

31 DECEMBER Amounts in million NOK Note 2015 2014 Assets Non-current assets Fixed assets 6 89 113 Intangible assets 7 611 601 Deferred tax assets 16 31 53 Other long-term receivables 3,10 - 21 Total non-current assets 731 788

Current assets Inventory 9 6 5 Accounts receivable and other receivables 11 706 658 Cash and cash equivalents 12 357 175 Total current assets 1 069 838 Total assets 1 800 1 626

Equity Equity attributable to company shareholders Share capital and share premium 13 253 253 Other equity 179 42 Total equity 432 295

Liabilities Non-current liabilities Bond 3,15 637 633 Other interest-bearing long-term debt 3,15 69 63 Pension obligations 17 51 131 Deferred tax 16 4 4 Provisions 25,26 9 19 Total non-current liabilities 772 850

Current liabilities Accounts payable and other current liabilities 3,14,25 583 478 Taxes payable 23 9 (2) Short-term interest-bearing debt 5 5 InfratekToInfratek tReportal cur 2015Reportrent l i2015abiInfrateklities Report 2015 597 481 27/04/1627/04/16 13:14 13:14 27/04/16 13:14 InfratekToInfratek tReportalInfratek liab 2015Reportili tReporties 2015 2015 1 368 1 331 27/04/1627/04/16 13:1427/04/16 13:14 13:14 significantTotal significanteq uvariationsity an variationsd linia bworkloadisignificantlit iine sworkload from variations quarter from quarter into workload quarter. to quarter. from quarter to quarter.1 800 1 626 significant significant significantvariations variations variationsin workload in workloadin fromworkload quarter from from quarter to quarterquarter. to quarter.to quarter. Infratek'sInfratek's Nordic Nordicmarket market positionInfratek's position and Nordic strong and market strongfinancial position financial position, and position, strongmakes makesfinancialInfratek Infratek wellposition, positioned well makes positioned Infratek well positioned Note 1-28 are presented on the page following the financial statements and integral to them. toInfratek's meettoInfratek's the meetInfratek'sNordic challenges the Nordicmarket challenges Nordic facing market positionto marketmeet thefacing position andtheGroup position the challengesstrong andinGroup theand strongfinancial future. in strongfacing the financial position,future. financialthe Group position, makes position, in the makesInfratek future. makes Infratek well Infratek positioned well well positioned positioned to meetto the meetto challengesmeet the the challenges challenges facing thefacing facingGroup the the inGroup the Group future.in thein the future. future. BOAR D OF DIRECTOR S, INFRATEK GROUP AS OSLO, 25 APRIL 2016

______THE BOARDTHE BOARDOF DIRECTORS OF DIRECTORSTHE OF INFRATEKBOARD OF INFRATEK OF GROUP DIRECTORS GROUPAS OF AS INFRATEK GROUP ASOSLO, 25 OSLO, APRIL 25 2016 APRIL 2016 OSLO, 25 APRIL 2016 THE BOARDTHETHE BOARDOF DIRECTORSBOARD OF DIRECTORSOF DIRECTORS OF INFRATEK OF INFRATEKOF GROUPINFRATEK GROUPAS GROUP AS AS OSLO, 25 OSLO, APRIL OSLO, 25 2016 APRIL25 APRIL 2016 2016

Carl Johan Falkenberg Petter Darin Carl Johan Renvall

Carl JohanCarl Falkenberg Johan Falkenberg Carl Johan Falkenberg Petter Darin Petter Darin Petter Darin Carl Johan Carl Renvall Johan Renvall Carl Johan Renvall CarlCha JohanirmCarlan CarlFalkenberg Johan Johan Falkenberg Falkenberg Petter Darin B Petter o a Petterr d Darin m e Darinm b e r Carl Johan Carl CarlRenvall Johan Bo Johanar dRenvall m Renvallember Board chairmanBoard chairman Board chairman Board member Board member Board member Board member Board member Board member Board chairmanBoardBoard chairman chairman Board member Board Board member member Board member Board Board member member

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1 JANUARY - 31 DECEMBER

Amounts in million NOK Note 2015 2014 Profit (loss) before tax and discontinued operations 105 88 Adjustments for:

- Depreciation and amortization 6,7 38 36 - Financial income and expenses 22 54 63 - Change in pension liabilities and actuarial gains and losses 17 (46) (108) - Other non-cash items and changes in accruals (12) 2 Changes in working capital: - Accounts receivable and other receivables (48) 7 - Accounts payable and other current debt 105 12 - Other working capital elements 35 5 Taxes paid (12) (24)

Net cash flow from operating activities 219 81

Cash flow from investing activities Payments on acquisition of subsidiaries (net of cash acquired) 13 - (234) Proceeds from sale of subsidiaries (net of cash sold) 24 - (17) Investments in fixed assets 6,7 (10) (29) Proceeds on sale of fixed assets 8 5

Net cash flow from investing activities (2) (275)

Cash flow from financing activities Proceeds from issuing long-term debt - 632 Proceeds from issuing current debt - 234 Repayments of short-term debt - (630) Net interest payments (43) (66)

Net cash flow from financing activities (43) 170

Cash flow from discontinued operations - 25

Net change in cash and cash equivalents 174 1

Cash and cash equivalents as of 1 January 175 170 Exchange rate differences on cash and cash equivalents 8 4

Cash and cash equivalents as of 31 December 12 357 175

Note 1-28 are presented on the page following the financial statements and integral to them.

10 Changes in Equity Group

Note Share Share Retained Accumulated Actuarial Total Non- Total capital premium earnings translation gains controlling controlling equity Amounts in differences and interests interests million NOK losses pensions Equity as of 1 - 185 (37) 8 12 168 198 366 January 2014

Profit (loss) for - - 92 - - 92 (1) 91 the period Other comprehensive - - - 24 (20) 4 - 4 income Total comprehensive - - 92 24 (20) 96 (1) 95 income for the period Transactions with owners Equity increase through debt - 68 - - - 68 - 68 conversion Transactions with non - 13 - - (37) - - (37) (197) (234) controlling interests Total transactions - 68 (37) - - 31 (197) (166) with owners Equity as of 31 December - 253 18 32 (8) 295 - 295 2014

Profit (loss) for - - 70 - - 70 - 70 the period Other comprehensive - - - 43 25 68 - 68 income Total comprehensive - - 70 43 25 138 - 138 income for the period Equity as of 31 December - 253 87 76 16 432 - 432 2015

Note 1-28 are presented on the page following the financial statements and integral to them.

11 NOTE 1 GENERAL INFORMATION Infratek Group AS was established as a limited liability company incorporated in Norway on 28 May 2013. The Company entered into an agreement to acquire the majority of the ownership interests in the listed company Infratek ASA on 25 June 2013. Infratek Group AS acquired the remaining shares in Infratek ASA in 2014 and delisted the company on 20 March 2014.

Infratek Group AS and its subsidiaries (collectively referred to as the Group) is a leading supplier of technical services for development and operation of critical infrastructure in Norway,Sweden and Finland. The Group's business activities are directed at the corporate market: primarily grid owners,energy companies,and the public sector. See note 5 for more information on the Group's business segments.

The Group operates its business activities through subsidiaries. Infratek Group AS is domiciled in Norway and headquartered at Breivollveien 31 in Oslo.

These consolidated financial statements have been approved for issue by the Board of Directors on 25 April 2016 and are subject to approval by the Annual General Meeting on 25 April 2016.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES The most important accounting principles used in the preparation of the consolidated accounts are described below. These principles have been applied consistently to all presented reporting periods, unless otherwise stated in the description.

2.1 Basis of preparation The consolidated financial statements of Infratek Group AS have been prepared and presented in accordance with International Financial Reporting Standards and IFRIC interpretations, as adopted by the EU (IFRSs). The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets and net defined benefit (asset) liability is recognised at fair value of plan assets less the present value of the defined benefit obligation. The preparation of financial statements according to IFRS requires the use of estimates. Furthermore, the application of the company’s accounting principles requires management to exercise judgment and apply assumptions. Areas highly subjected to the exercise of such judgment or with a high degree of complexity, and areas where assumptions and estimates are material to the consolidated financial statements, are discussed in Note 4.

The Group’s annual financial statements have been prepared in accordance with the going concern principle.

2.1.1 Changes in accounting principles and information a) New and amended accounting standards adopted by the Group. The following standards affecting the consolidated financial statements have been implemented for the financial year beginning 1 January 2015: · Annual Improvements to IFRSs – 2010-2012 Cycle and 2011 – 2013 Cycle · Defined Benefit Plans: Employee Contributions – Amendments to IAS 19 The adoption of these amendments did not have any impact on the current period or any prior period and is not likely to affect future periods. b) New standards, amendments and interpretations of existing standards issued but not effective for the financial year beginning 1 January 2015 and not early adopted: · IFRS 9 Financial Instruments addresses the classification, measurement and recognition of financial assets and financial liabilities. IFRS 9 was issued in November 2009, October 2010, November 2013 and July 2014. The standard replaces the sections of IAS 39 that relate to the classification and measurement of financial instruments. IFRS 9 requires financial assets to be classified into two measurement categories; those to be measured at fair value and those to be measured at amortised cost. The determination of category is made at initial recognition. The classification depends on the entity's business model for managing its financial instruments and the instruments' contractual cash flow characteristics. For financial liabilities, the standard keeps most of the IAS 39 requirements. The main change is that in cases where the fair value option is used for a financial asset, the part of the fair value change relating to the entity's own credit risk is recognised in other comprehensive income rather than the income statement, unless this creates an accounting mismatch. IFRS 9 entails several changes and simplifications that will lead to an increased use of hedge accounting. The Group has not yet fully assessed the impact of IFRS 9. The standard is effective for annual reporting periods starting from 1 January 2018 onwards, but has not been approved by the EU.

· IFRS 15 Revenue from Contracts with Customers supersedes the current requirements in IAS 11 and IAS 18 and outlines a single comprehensive model to account for revenues arising from contracts with customer. IFRS 15 was issued on 28 May 2014 and the objective of the standard is to establish the principles for reporting useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. The main principle is that revenues should be recognised to reflect the transfer of the promised goods and services to the customers in an amount that reflects the consideration that is expected in exchange for those goods and services. The Group has not yet fully assessed the impact of IFRS 15. The standard is effective for annual reporting periods starting from 1 January 2018 onwards. Earlier application is permitted.

There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the consolidated financial statements.

2.2 Consolidation principles a) Subsidiaries Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

12 The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition- by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets.

If the business combination is achieved in stages, the aquisition date fair value of the acquirer's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.

Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in accordance with IAS 39 either in profit or loss or as a change to other comprehensive income. Contingent consideration that is classified as equity is not remeasured and its subsequent settlement is accounted for within equity.

The Group’s annual financial statements have been prepared in accordance with the going concern principle.

There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the consolidated financial statements.

The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition- by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets.

If the sum of the consideration, capitalised amount of non-controlling shareholders and actual value of previous ownership on the acquisition date surpasses the actual value of identifiable net assets in the acquired company, the difference shall be capitalised as goodwill. If the amount is lower than the acquired company's net asset value, the difference should be recognised as income in the statement of comprehensive income.

Intra-Group transactions, inter-company balances, and unrealised profit between Group companies have been eliminated. Profit and losses resulting from inter-company transactions that are recognised in assets are also eliminated. Accounting principles of subsidiaries are modified when necessary to achieve conformity with Group accounting principles. b) Changes in ownership interests in subsidiaries without change of control Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions. In the case of additional purchases, the difference between the consideration paid and the share's relative share of net assets in the subsidiary is booked to the equity attributable to company shareholders. Gains or losses on disposals to non-controlling interests are also recognised in equity. c) Disposals of subsidiaries When the Group ceases to have control of any retained interest in the entity, it is remeasured to its fair value when control is lost, with the change in carrying amount booked to profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

2.3 Segment reporting Operating segments are reported in the same way as for internal reporting to the company’s highest decision-making body. The company’s highest decision-making body, which is responsible for allocating resources and assessing the financial performance of the operating segments, is defined as Group management.

2.4 Foreign currency translation a) Functional currency and presentation currency Items included in the financial statements of each subsidiary in the Group are recorded in the currency mainly used in the economic area in which the subsidiary operates (its functional currency). Infratek’s consolidated financial statements are presented in Norwegian kroner (NOK), which is the functional currency and the presentation currency of the parent company. b) Transactions and balance sheet items Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign currency exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary items (assets and liabilities) denominated in foreign currencies at year-end, are translated at the exchange rate on the balance sheet date, and are recognised in the profit and loss account. c) Group companies The results and financial position of all the Group entities (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: i) Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; ii) Income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and iii) All resulting exchange differences are recognised in other comprehensive income and specified separately in equity.

Goodwill and excess values relating to acquisitions of foreign entities are treated as assets and liabilities in the acquired entities and are translated at the exchange rate in effect on the balance sheet date. Exchange differences arising are recognised in other comprehensive income.

2.5 Property, plant and equipment Property, plant, and equipment are recognised at acquisition cost less depreciation and impairment charges. Acquisition cost includes costs directly associated with the acquisition of the operating asset.

13 Expenses that significantly increase the life of assets and/or increase capacity are added to the balance sheet value of operating assets or recorded separately in the statement of financial position, when it is probable that future economic benefits associated with the expense will flow to the Group, and the expense can be reliably estimated. Other repair and maintenance costs are recognised in the profit and loss account for the period in which the expenses are incurred.

Other operating assets that are in use are depreciated according to a straight-line plan, so that the acquisition costs of property, plant and equipment are depreciated to their residual value at the annual depreciation rates as shown below:

Improvement to leased premises - *) Buildings 30 years Machinery, furniture, vehicles etc. 3-12 years IT-equipment (hardware) 3 years

*) Improvements to leased premises are depreciated over the length of the particular premises’ leasing contract. If the sum of the consideration, capitalised amount of non-controlling shareholders and actual value of previous ownership on the acquisition date surpasses the actual value of identifiable net assets in the acquired company, the difference shall be capitalised as goodwill. If the amount is lower than the acquired company's net asset value, the difference should be recognised as income in the statement of comprehensive income.

Expenses that significantly increase the life of assets and/or increase capacity are added to the balance sheet value of operating assets or recorded separately in the statement of financial position, when it is probable that future economic benefits associated with the expense will flow to the Group, and the expense can be reliably estimated. Other repair and maintenance costs are recognised in the profit and loss account for the period in which the expenses are incurred.

Improvement to leased premises - *) Buildings 30 years Machinery, furniture, vehicles etc. 3-12 years IT-equipment (hardware) 3 years

*) Improvements to leased premises are depreciated over the length of the particular premises’ leasing contract.

The useful life of each operating asset, along with its residual value, is reassessed each balance sheet date and modified if necessary. When the carrying value of an operating asset exceeds the estimated recoverable amount, the value is written down to that recoverable amount (see Note 2.7).

Gains and losses on the disposal of operating assets are recorded in the profit and loss account at the difference between the sales price and balance sheet value.

2.6 Intangible assets a) Goodwill Goodwill is the difference between acquisition cost and the Group’s share of net fair value of the identifiable assets at the time of acquisition. Goodwill on the acquisition of subsidiaries is classified as an intangible asset. Goodwill is reviewed annually for impairment, and entered in the statement of financial position at acquisition cost less impairment losses. Impairment losses on goodwill are not reversed. Gains or losses on the sale of an activity include the goodwill in the statement of financial position of the disposed activity.

Following an initial identification of the need to write down goodwill, goodwill at the acquisition date is allocated to the cash- generating units in question. Allocation is made to the cash-generating units or groups of cash-generating units that are expected to benefit from the acquisition. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes.

Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not reversed in subsequent periods. b) Software and licences Software and licences comprise investments associated with the Group’s ERP system (IFS) which is capitalised at acquisition cost less amortization and impairment charges, as well as the establishment of an in-house ICT platform. The ICT investments follow an amortization plan as shown below:

ICT base system investment 10 years ICT Development of systems and other ICT related investments 3-5 years

2.7 Impairment of non-financial assets Intangible assets with indefinite useful lives are not depreciated, but are reviewed annually for impairment. Tangible fixed assets and intangible assets that are depreciated or amortised are reviewed for impairment when there are indications that future earnings can no longer support the balance sheet value. Impairment charges are recorded in the profit and loss account as the difference between the balance sheet value and the recoverable amount. The recoverable amount is the higher of fair value less sales costs and value-in-use.

At impairment reviews, fixed assets are grouped at the lowest level at which it is possible to distinguish independent cash inflows (cash generating units). At each reporting date, evaluations are done as to reversal of previous impairment charges of non- financial assets (with the exception of goodwill).

2.8 Financial assets The Group only has financial assets in the categories loans and receivables. Loans and receivables are non-derivative financial assets with fixed payments that are not traded in an active market. They are classified as current assets unless they fall due more than 12 months after the balance sheet date. If the latter is the case, they are classified as non-current assets. Financial assets are recognised at the transaction date using the acquisiton price including transaction costs, with a subsequent assessment of the amortised value based on the effective interest method adjusted for any estimated loss.

2.9 Inventory Inventories are stated at the lower of acquisition cost or net realizable value. Acquisition cost is determined by the first-in, first-out (FIFO) method. 14

2.10 Customer receivables Customer receivables are amounts due from customers for merchandise sold or services performed as part of the ordinary course of Group business. If collection is expected in one year or less they are classified as current assets. If not, they are classified as non-current assets.

Customer receivables are initially measured at fair value and subsequently measured at amortised costs using the effective interest method. Allocations for losses are recognised when there are objective indicators that the Group will not receive settlement according to original terms. Allocations consist of the difference between nominal value and recoverable value, which is the present value of expected cash flows, discounted at the original effective interest rate.

2.11 Cash and cash equivalents Cash and cash equivalents comprise cash, bank deposits, and other short-term readily tradable investments with up to three- month initial terms to maturity, and revolving credit facilities. The revolving credit facilities are presented in the balance sheet under short-term debt.

2.12 Share capital and share premium

Gains and losses on the disposal of operating assets are recorded in the profit and loss account at the difference between the sales price and balance sheet value.

ICT base system investment 10 years ICT Development of systems and other ICT related investments 3-5 years

2.9 Inventory Inventories are stated at the lower of acquisition cost or net realizable value. Acquisition cost is determined by the first-in, first-out (FIFO) method.

2.12 Share capital and share premium

Ordinary shares are classified as equity. Costs directly attributable to the issue of new shares or options are shown in equity as a reduction in proceeds received in equity.

2.13 Borrowings Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

2.14 Accounts payable Accounts payable are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Accounts payable are initially measured at fair value. Subsequently, accounts payable is measured at amortisation cost by use of effective interest method.

2.15 Current and deferred tax The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised directly in equity and other comprehensive income. In this case, the tax is also recognised in equity and other comprehensive income. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is calculated, using the liability method, on all temporary differences between the tax values and consolidated accounting values of assets and liabilities. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. If the Group purchases an asset or liability in a transaction that is not part of a business combination, deferred tax at the transaction date is not recognised. Deferred tax is determined under taxation rates and tax laws that have been enacted or substantively enacted (expected to be signed into law) at the balance sheet date and that are expected to apply when the deferred tax benefit is realised or when the deferred tax is settled. Deferred tax assets are recognised in the statement of financial position to the extent it is probable that future deferred taxable income will be present, and that the temporary differences can be offset from this income.

Deferred tax is calculated on the temporary differences arising from investments in subsidiaries and associates, except where the Group controls the timing of the reversal of the temporary differences, and it is probable that they will not be reversed in the foreseeable future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

15 i) Defined benefit plan A defined benefit scheme is a retirement benefit scheme that defines the retirement benefits that an employee will receive on retirement. The retirement benefit is normally set as a percentage of the employee’s salary. The liability recognised in the statement of financial position which relates to the defined benefit scheme is the present value of the future retirement benefits that have accrued at the balance sheet date, reduced by the fair value of the plan assets. The present value of future benefits accrued at the balance sheet date is calculated by discounting estimated future payments at a risk-free interest rate stipulated on the basis of the interest rate for high-quality corporate bonds in Norway. The retirement benefit liability is calculated annually by an independent actuary using the linear accruals method.

Actuarial gains and losses attributable to changes in actuarial assumptions or base data are recognised through other comprehensive income on an ongoing basis after provisions for deferred tax. Changes in defined benefit pension liabilities attributable to changes in retirement benefit plans that have retrospective effect, where these rights are not contingent on future service, are recognised directly in the income statement. Changes that are not issued with retrospective effect are recognised in the income statement over the remaining service time.

Accounts payable are initially measured at fair value. Subsequently, accounts payable is measured at amortisation cost by use of effective interest method.

2.16 Pension liabilities and other employee-benefit plans a) Pension liabilities Group companies have various retirement schemes. The schemes are generally funded through payments to insurance companies or trustee-administered funds, determined by periodic actuarial calculations. The Group has both defined benefit and contribution plans. i) Defined benefit plan A defined benefit scheme is a retirement benefit scheme that defines the retirement benefits that an employee will receive on retirement. The retirement benefit is normally set as a percentage of the employee’s salary. The liability recognised in the statement of financial position which relates to the defined benefit scheme is the present value of the future retirement benefits that have accrued at the balance sheet date, reduced by the fair value of the plan assets. The present value of future benefits accrued at the balance sheet date is calculated by discounting estimated future payments at a risk-free interest rate stipulated on the basis of the interest rate for high-quality corporate bonds in Norway. The retirement benefit liability is calculated annually by an independent actuary using the linear accruals method.

Net pension fund assets for overfunded schemes are classified as non-current assets and recognised in the statement of financial position at fair value. Net retirement benefit liabilities for underfunded schemes and non-funded schemes that are covered by operations are classified as long-term liabilities. The net retirement benefit cost are divided between salaries and other personnel expenses and net finance, where the retirement benefits accrued during the period is classified as salaries and other personnel expenses and the net of interest on the estimated liability and the projected yield on pension fund assets are classified as net finance. ii) Defined contribution plans A defined contribution plan is a retirement plan in which the Group pays fixed contributions to a separate legal entity. The Group has no legal or other obligation to pay additional contributions if the unit does not have sufficient assets to pay all employees benefits associated with earnings in present and previous periods. For defined contribution plans, the Group contributes to a publicly or privately managed insurance plan for retirement payments, on a compulsory, agreed-upon, or voluntary basis. The Group has no further payment obligations once these contributions have been paid. Contributions are recognised as salary expenses when they fall due. Pre-paid contributions are recorded in the accounts as an asset to the extent the contribution may be refunded or reduced by future contributions.

Defined contribution pension schemes are recognised in the financial statements of Norwegian, Swedish and Finnish subsidiaries. b) Severance pay Severance pay is paid when the Group terminates an employee’s employment before the normal retirement age, or when employees voluntarily terminate employment conditioned on receipt of such compensation. The Group recognises severance pay during the period when it can be proven to have an obligation either to terminate one or more employees pursuant to a formal, detailed, non-rescindable plan, or to provide severance pay as part of an offer to encourage voluntary resignations. Severance pay that falls due more than 12 months after the balance sheet date is discounted to present value.

2.17 Provisions The Group recognises provisions for restructuring, and legal claims, when: a) the Group has a present obligation, whether legal or constructive, as a result of past events; b) it is more likely than not that the obligation will be settled via a transfer of financial resources; and c) the size of the obligation may be estimated with a sufficient degree of reliability. Allocations for restructuring costs include termination charges on leasing contracts and severance pay to employees. No provisions are made for future operating losses.

In instances where there are multiple commitments of a similar nature, the probability of the liability being settled is determined by assessing the group as a whole. Allocations for the group are recognised even if the probability may be low as to individual settlement outlays associated with individual group elements.

Provisions are recognized at the present value of expected payments to meet the obligation. A before-tax discount rate is used, reflecting current market conditions and risk specific to the obligation. Any increase in the obligation amount arising from changes in the time frame used in calculating the obligation’s present value is recognised as an interest expense.

2.18 Revenue recognition Revenues are recognised in the profit and loss account as shown below: a) Sale of goods and services Revenues from sales of goods and services are valued at the fair value of payments received, less deductions for value-added tax, returns, rebates, and discounts. Intra-Group sales are eliminated. Sales are recognised in the profit and loss account when revenues can be measured reliably and it is likely that the financial benefits associated with the transaction will flow to the Group. b) Construction contracts Contract costs are recognised as expenses in the period in which they are incurred. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised only to the extent of contract costs incurred that are likely to be recoverable. When the outcome of a construction contract can be estimated reliable and it is probable that the contract will be profitable, contract revenue is recognised over the period of the contract. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Variations in contract work, claims and incentive payments are included in contract revenue to the extent that may have been agreed with the customer and are capable of being reliable measured.

The Group uses the "percentage-of-completion method" to determine the appropriate amount to recognise in a given period. The stage of completion is measured by reference to the contract costs incurred up to the balance sheet date as a percentage of total estimated costs for each contract. Costs incurred in the year in connection with future activity on a contract are excluded from 16 contract costs in determining the stage of completion. They are presented as inventories, pre-payments or other assets, depending on their nature.

The Group presents as an asset the gross amount due from customers for contract work for all contracts in progress for which costs incurred plus recognised profits (less recognised losses) exceed progress billings. Progress billings not yet paid by customers and retention are included within ‘trade and other receivables’. The Group presents as a liability the gross amount due to customers for contract work for all contracts in progress for which progress billings exceed costs incurred plus recognised profits (less recognised losses).

2.19 Leasing agreements Leasing agreements, in which a significant proportion of the risk and return associated with ownership remains with the lessor, are classified as operational leases. Leasing payments arising from operational leases (less any financial incentives granted by the lessor) are expensed on a straight-line basis over the leasing period.

ii) Defined contribution plans A defined contribution plan is a retirement plan in which the Group pays fixed contributions to a separate legal entity. The Group has no legal or other obligation to pay additional contributions if the unit does not have sufficient assets to pay all employees benefits associated with earnings in present and previous periods. For defined contribution plans, the Group contributes to a publicly or privately managed insurance plan for retirement payments, on a compulsory, agreed-upon, or voluntary basis. The Group has no further payment obligations once these contributions have been paid. Contributions are recognised as salary expenses when they fall due. Pre-paid contributions are recorded in the accounts as an asset to the extent the contribution may be refunded or reduced by future contributions.

Variations in contract work, claims and incentive payments are included in contract revenue to the extent that may have been agreed with the customer and are capable of being reliable measured.

The Group uses the "percentage-of-completion method" to determine the appropriate amount to recognise in a given period. The stage of completion is measured by reference to the contract costs incurred up to the balance sheet date as a percentage of total estimated costs for each contract. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. They are presented as inventories, pre-payments or other assets, depending on their nature.

Leasing contracts that are associated with fixed assets, and as to which the Group largely has all risk and control, are classified as financial leasing. Financial leasing is recognised in the statement of financial position at the beginning of the lease period at the lower of fair value of the leased asset or the present value of the total minimum lease amounts. Each lease payment is allocated between a repayment element and an interest element, in such a way that the statement of financial position shows a constant interest expense on outstanding lease commitments. Interest expenses are recognised in profit or loss as financial expenses. Lease liabilities are classified as other short-term liabilities or other long-term liabilities. Fixed assets acquired through financial lease agreements are depreciated over the expected lifetime or the lease period, whichever is shorter.

2.20 Dividends Dividend payments to shareholders are classified as current liability as of the time the dividend disbursement has been approved by the general shareholder’s meeting.

2.21 Interest income Interest income is recognised using the effective interest method. When a loan and receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loan and receivables is recognised using the original effective interest rate.

NOTE 3 FINANCIAL RISK MANAGEMENT The Group’s business activities primarily entail exposure to interest rate risk, liquidity risk, and credit risk. The Group is not exposed to financial price risk of any particular significance.

The Group’s risk management procedures support the Group’s value creation and ensure a continued solid financial platform by identifying and carefully managing financial and operational risk factors. As a rule, risk management is the responsibility of each business unit’s operational management. For a description of other areas of risk to which the Group is exposed, please see the Board of Directors Report as well as guidelines for corporate governance. a) Currency risk Infratek is only to a limited extent operationally influenced by changes in foreign exchange, as the operations are only marginally applying purchase in foreign exchange or trade across countries. When significant foreign exchange risk is present it is evaluated on a case by case basis and secured through forward contracts or similar if required. As of 31 December 2014 and 2015, the Group had no financial derivates for currency hedging.

The Group has operations in Norway, Sweden and Finland and is thus exposed economically to exchange rate risk from SEK and EUR to NOK. Equity in foreign subsidiaries does not have currency hedging and exchange rate fluctuations do affect the Group’s equity.

Net exchange differences on translating foreign operations to NOK in 2015 was NOK 43 million (NOK 24 million). The table below shows the effect of the Group’s loss / gain on exchange rates by a plus or minus 10 per cent change in exchange rates from SEK and EUR to NOK for the financial year 2015. The amount relates to translation differences which is a part of other comprehensive income and does not affect net profit.

Sensitivity analysis translation differences Currency rate change

Amounts in NOK million Currency +10% -10% Effect on other comprehensive income and equity SEK 36 (36) Effect on other comprehensive income and equity EUR 20 (20) Total effect on other comprehensive income 56 (56) and equity b) Interest rate risk The Group’s operating revenues and cash flow from operations are largely unaffected by changes in interest rates. Variations in the interest rate may, however, affect customers’ willingness to invest, indirectly affecting the Group’s operating revenues and cash flow. The Group is primarily exposed to interest rate risk associated with long-term debt, and to a lesser degree with cash and cash equivalents. The Group's long-term debt mainly consists of a bond of NOK 637 million and other long- term interest-bearing debt of NOK 70 million. The bond is a floating interest rate loan, with a duration of 5 years and coupon of 3 months' NIBOR + 5 %. A +/- 1 percentage point change in NIBOR would impact the Group's interest expenses with approximately -/+ NOK 7 million per year. Other long-term interest-bearing debt of NOK 70 million has a fixed interest rate. Fixed interest debt exposes the Group to fair value interest rate risk. At the close of 2015, the Group had net cash holdings of NOK 357 million (NOK 175 million) and had earned NOK 1 million (NOK 6 million) in interest income during the year. Variations in NIBOR, STIBOR and EURIBOR will affect interest income on cash reserve as well as the Group’s capital costs. c) Liquidity risk 17 Liquidity risk arises from a lack of coherence between cash flow from operations and financial commitments. Infratek’s business activities are subject to seasonal variations that may affect cash flow. As of 31 December 2015, Infratek had cash and cash equivalents of NOK 357 million (NOK 175 million). Infratek also has an unused NOK 100 million credit facility with Swedbank. Infratek’s borrowing agreement with Swedbank is conditional upon certain Covenants related to Infratek AS proforma group. The Group’s cash flow from operating activities in 2015 was positive as a result of a positive pre-tax profit and reductions in working capital. Infratek is in compliance with all the requirements stipulated in its borrowing agreement. Overall these resources are deemed to provide solid liquidity for the Group.

Maturity-analysis long-term debt*

2014 3-5 1 year 2-3 years 5 years or later Amounts in NOK million years Total Bond 44 89 716 - 849 Other interest-bearing long-term debt - - - 404 404

Total long-term debt 44 89 716 404 1 253

2015 3-5 1 year 2-3 years 5 years or later Amounts in NOK million years Total Bond 45 89 667 - 802 Other interest-bearing long-term debt - - - 404 404 Total long-term debt 45 89 667 404 1 206

*) Including interest payments

Maturity-analysis financial short-term debt:

NOTE 3 FINANCIAL RISK MANAGEMENT NOT TNE NhO e3OT NGTEOEr o3F T3uIEpN ’3AsF FNIbNIuCNAsFIAiNInNLeC ACsIRsANII ALSaCLc KIR tAR iIvMLSIiS tKARiKe NIMs SAM pKAGAr NiMEmNAMAaGENrGiENlAEyMT GMeEEnENMtNaTETil NexTposure to interest rate risk, liquidity risk, and credit risk. The Group is not The eTGTxhrhpeoeo uTG sphGre’eosrd o uG butpuorp’o s’fusi inbn pbeua’usn sicbn iianueacesl tispnis vrae iiatcsictseit vsairv iictpsiitkreiive smois tpfa i perarirsinmli ymypa reaprinimraliytrlay teir clein lueyntlxa taeapirlni o lest seaixugxiplrn poeiofs xitsucpouar oerinnse ctut oetro .eri en itnstoet erirneraetsteste rt re rarisasttekt er, ra liristqiesku k,r i,dli islqiiktquy, ui ldriqidistuiyktiy, d r airstinyskd k,r ,aic sanrkend,d aci tncr erdeid scdiktri. et r Tdirsihiskte k.r .TiG sThkrheo. e uTG phGr eoirs ouG unprpo oi tsuis pn n oiost tnot expoesexexpdpoe otsxosep edfodi nst oeato dnf i cfntiiona alnf inpcnciraiicanl elcp piraiircsli cekpe ror iircfsi eska k nro iyosf kfap anaonyrf ty aip cnpauyarlta rpitrcia cusrulitagliacrn uris flsiiagcirgan nsificigfceinca.ainfniccceae.n.ce.

The Group’s risk management procedures support the Group’s value creation and ensure a continued solid financial platform The bTGThyrh eoied uTG ephGrn’eosrt o uiGrfupiyrsp’ioksn’us gmr pi rsa’iasknn k rdma im sgcakean mrnaeageafguenelmtal mygpe emrnomntac tpen prndaortguoc irpceneredgsodu cfsurieunerdpeasusp nsr ocsueriupsatp lst paohuonreptrd p tGt ohotrrheopte ueGt prhGar’eosrt oi uGovupnarp’oals’uus l ve prva i’csaslurk leuv efae actl cuicroteronea r catsarit.onei oAndan s taei oann dsr du ae rlnenedn,s a sure iurscnerkose nau ma trcie anco nuoanaen tcgidtnoie nunsmuoetieldnidn us tesof iiodlnsild aistd nhof icelfniiid nar alenf inpscnpcilaioanltn flcpo spilraiblmlat ifpltoiftloraymrtmform by idboebfyn y eit daibifdecyehni ni tdbigtfeiuy fanysintinigdfegy acis nanasgn drue d ancf uncaitladr’lseyr ce f omuafpulrlaelylnfyr uma mltglaiyoian nmnagaag alfg iinnmiangaag nfni icnfnaiignag alnef inacmncniaeidanln lcao tai.npa nFdel do raoa rnop tadpieo erdonarepatseilto cironraisinaptkialto ilfrno airsnaicskl t ko orf fiarfs saock.ct ohAftaoresscrr s.at ao.A rrAsuess .lae Aas ,r suor iulfase lk re,ri su,mr kilrsei askt,no k rma iwmsgakhean imncaahgeag entemhta megies eGn tmnthr toie sui ns rptt eht sihespe rtoe ehrnxesepssp iorpboesoinlseinsptdsiyob,ibnilisltiytbyility of eaopcofleh fe a eabosacufe chs ehsi anbe bceuehus t sibhn iunenes Bisntos ’ues auns ronsditp i ’utoes’ns fro ai Dtopt’piseor eronarcpatteiltoo irmronasnat Rialno leman mpgaaoelan rmnat agaegesne mtaw.mg eeFenolmlnt r.at ea.sF n Fodgtore.u rasFi dac ode rrdie lpiaesnt sciedocrseinrp isf ptocitorfi ionpocn otohi rofpe nforo o torahtafrhe teoerat r ahgs ar eooerrvefa eaasrris sneo koaf fnstr oi crsoi eskwf. k rth iotsioc kwh wt hothih ciwech h Gt ihtcrheohe uGt phGr eoirs ouG ueprpx oi psuis ope se xeixspd poe,osxsepedod,s,ed, pleapspelel esaepaselsee ats hseee e Bst hetoheae rBt dhBo eoa farB drDod ioa rofer dfcD tDoiorifer seDc ctRiorteorspcrs toRo rRertse pa poRsor etwrp tae oaslrls t wa wases elg ll wlua aeisds llge gauliusnid iegdesuel iilfndioneeres lcis nfo oferorps rc o fcooroarrpr tcpeooo rgrarpoatoevter ega rgotneova vengerconrevna.eanrncnceae.n.ce.

a) Currency risk a) Caua)r )rC eCaun)ur crCyerue nrrnicrscyeky nr cirsiysk krisk Infratek is only to a limited extent operationally influenced by changes in foreign exchange, as the operations are only InframItnIenfakrfra rgIiatnsiet nfeorkaank lit lsyeis ok ato noipnsl ypa loy l tyl noitimlno ya gi a t leo pilmd iuma rie tcliexithmedtaed isetn extd xtioen tepn fxentot rtorea eopntipietgo ernoar pateeiltxoliyrocna hniatnialoflnlylnluyg aie neilnlf yolcfu lreiue ndtenfr lnacbucedyeede ncd chba ebacydyr nco gbchsehysasa nc nighongeua efsnos gtir nreiin eisfg os fino.rn e rW eeifgxoihgncreenh nei age xnsnxcigg cheehnax,ain cfanighcsgea et,n h,agt ea sef s o,t rhptaehesie grota nhopt epieo erxonarcpsath eitaoairornanenstg is oea na rrelrsiyes oak onr ienlsy loynly margpmmirnaearsgmlrelgyinai ntar gapiltlilyp nliy lsay alpeilnypvg palay lpyuinupiangrltgyc ephi dnpua gurosc renpch uhianras c sefhaoe aisr neisn ei fg bo finoyrne r eceifgaxoigncsrenh ei agebxnnxacg chseehiasx ano cangrhn geatder noa gsorde ret c rt ouarradrc edtrerode aas tdasche crcror oaosucsgrs nco htcosr oifuseou nscrntw.or tWuiraeinreshdts.er .iWcn eWo shsn.hie tgWernnan hisc fesiitgcsingan onsifritigf c sifncaiomainrfnietic ltifag ofrnor tie rf eei fgrxoiegncrqenh eui agexinrnxceg chedehax. an rcAinghssgeka eo nir fsigr si3esk1 k ri siissk is presDpeprneertces episetmre niesntbs tei tivr nti ast2i s l0iuet e1 vaiv4sate a leuadluvan oatdenlt ue2d ad0 ot 1ceon5adn s,a oea tchn bcae ays Gse ce rab obsyuey pc bca haysase cdei sab nbsaaeoasn sibdfsiis a nas saeninscdc du asi ranseledc ddcu setureherricredvoud autr thetgehrdhsor otufhougrrghow hc ufau ogfrrorhdrwre wfcanooarcrdnrwyd t carh acoreodcndtn tcgsrt oaironancrgct sr.tas iom corti rsls a siomri rmi ifsl iarilmaer rqii flui afri rer eqifdqu r.uie rAieqrsedu d.oi r.Afe As3ds 1.o Aof fs3 31o1f 31 DeceDmDeecbceDemrem 2cbe0bem1er r42b 20ea01rn 14d24 0a2 1an04nd1 d 5a2 n,20 dt01h 152e5,0 G,t1 htr5heo,e uGt phGr eohr ouaGupdrp ohn uhaopad f d ihn anoado nf icnfniiona alnf indcncieairanli vlcd adieaterlei rvdsiva efatoretirves acs fut oferorrs rec fncuoucrrryr ecr euhnnrecrcydey gnh ihcenyedg dg.hgienidngg. i.ng.

The Group has operations in Norway, Sweden and Finland and is thus exposed economically to exchange rate risk from SEK The TaGThnrhedoe uTGE phGUr eohrR ouaG utpsrop ooh NuhpapOaes s rKhoa .oap tEpiseo qeronaurpsati teitioyinron a inNsntis oif nroinnw rsN e aNoiinygor, wnr NwS aoswayuryew,b ,dSsa Sewiydwn,ei aeSdardweniendesn da F deaninondle da asF nnF inddinol alFtan ihndald aavi snane dntd ch d aui snirss rdt eht inhxuscups tys ohe sheuxeexspd pdoe ogesxseicpnedoogdn se oaecmndcodo niec noecaomxolmlcnyicho ictamoalnl lyieglcy xeat oc tllroh yae a etxtneoxcg chfeelhaux anrcangthutgeaeae n rt ragirioastenekt ers fra ridrstoieoskm k raf irfSsorfkEoem Kmcf rtSo tSEmhEKe KSEK and GaEanUrnodRdu a E ptnEUo’dUs RN REe Ot qUotKuo RN. i tNtEOyoOq.K uNK. i.OEt yEqK qui.n uiEt iyfqtoy uir nieitn yifg o finorne r seifugoigbnrens si gdsuunibab srssiiudeidbisais ardiidroeiiesas rd idenoose etsd s hon aneovost ethn hacoauvt verhre aec vncuuecrryr ecr euhnnrecrcydey gnh ihcenyedg dg hagienidngdg aei nanxgndc dh ae anexndxcg cheehax anrcanghtgeaee n r fagrluateect er tfau lfutaleuct ictofutlnuascat titdouionan stais odf fdnoeos ca tdaf ftofehf ecaectf ftte htchete the GrouGpGr’osro uGeupqrp’ous’us iet pyeq’.qsu uietiyqty.u.ity.

Net exchange differences on translating foreign operations to NOK in 2015 was NOK 43 million (NOK 24 million). The table Net ebNNxecletoh tNew aexe nxsctg hceehoax awndcngihsfge fate hndr egdif enifefe fcfderefeirfsenfc enotcr nceoee sfnt srtoc ahoennens st Groltarnratno intsurslgpal a’ntfsiotsn irlngoaeg stifig sonf norg/e r ogeifgpoaignreinen ro ia ogoptnpieo ereonarxpsatc eittohiroona nsNtnis ogOt otneKo s N r iNantOotO Ke2 NK s0i On1ibn 5Ky2 2 0wian01 a 1p52s5l 0 uwN 1swaO 5oasK rs wN m4NaO3sOiKn mNK u4 Osi43l lK31 iom 04mn i3 plil( lieNmloiroOn incl Kl(ei No (n2NnOt4O K( cmNK h2 Oai24lnlK4 iomg 2mnei4)l ili. lin mloTi onehinl)xel.i) co .Tt hnaTha)bhe.n le eTgt ahteabe rbl eatlaetebsle belobfwrbeo eslmohlbowo ewSw lsE oshKw hot ao hwsnwehsd s oet whEftfheUese cRet the f tfoefoeff e ce Ntctfh Oftoe Kofc fG tf h toroheorfe utGt hphGre’eosr o ufGliuopnrps’aoss’nus l/c po liog’sassal sliy/on /egs oagsan rai/n i2egn o0xa on1cinh 5e a.oex nTnxcgh cheehax anracanghmtgeaeoe nsru a grbnateyett e rsraase b t lpbeaylyst uae sba s py optl ruoal us m tps ro ilanourn ursm s smol ia1nrit n0uimou spnis n1e d1u0ri0 s fcp f 1epen0rere trcp n ccechenrean tsc nt ce wgchnehat a inicnngh gea ie xsni nc gianh ee ap exinanxcgr chteeha xo anrcfang hotgeaete hnsr aegratreet ersastes fromcf rfoSormEomKmfp r Sroa eSEmnhEKd eK SaEn EanUsKndiRv d a eE tnE UoidUn RN cRE Oot UotmKo RN e fNtOo oaOrK nNKt dhf Oof edorK roft ifhentohesare nnft ichfoniienta alnf inyfcnfceieaiacanl rtlcy 2yniea0eal 1atry r5p2e .2r0a oT01rfh 15i2te5..0 .Ta1 Thm5he.o e Tau hamnemto arouemunlnato tru eernselat lt atroet estlars tat oteno st rlttaroatn intosrslnal antditsoiiflonfaen tdri odeifniffe fcdereeirfsenf enwcrceheesincs wch we hishsi c iwachh pi isicas har ta ip sopa fa rot rp toh aofer fotr otohtfhe oertrher comcpcoroemmhcpeoprnmersehiphverenen shinsievicvneoe smi invinceeco aoimnnmcedoe adm anoende d sad ndnodoe etsd s aon fneofoest tcan tafo fnftef ecatctf ftpne rnecoetf tipnt p.reortof ipftir.to. fit.

Sensitivity analysis translation differences SensSSietenivnSsisiettiynitv isaviitnitytiayv la iyatnsynai saly lntysrasiasliyns ts rtilarsaan ttnisroslaanlnat sditoilioanfftn eid ordinefifn efdceriefrfesnencrceesnsces Currency rate change CurrCeCunurcrCyerue nrrnacrcyetye nr carcayhte tare anc tcghehea ancnhggaeenge Amounts in NOK million Currency +10% -10% AmoAuAmnmtoAsoum uninnot stuNs niO nitnK sN NimOnO KiNlKl imO omKnili llmiloioinlnlion CurrCeCunurcrCyeruenrncrcyeyncy +10+%+110+0%%1-01%0%-1-1 00 %-% 10 % Effect on other comprehensive income and equity SEK 36 (36) EffecEtEf fofefnecE ctfo ftote honcen to ro tchntohe omert rcph coreoemrmh cpeoprnmersehiphverenen shinsievicvneoe smi invinceeco aoimnnmcedoe aem anqendu d iaet nyeqdqu uietiyqtyuity S EK SSEEKKSEK 36 3366 (3366)(3(366)()36) Effect on other comprehensive income and equity EUR 20 (20) EffecEtEf fofefnecE ctfo ftote honcen to ro tchntohe omert rcph coreoemrmh cpeoprnmersehiphverenen shinsievicvneoe smi invinceeco aoimnnmcedoe aem anqendu d iaet nyeqdqu uietiyqtyuity E UREEUURREUR 20 2200 (2200)(2(200)()20) Total effect on other comprehensive income TotaTlTo eotfatTfaleo lec teaftf loef encfct fo teo tocnhtn e o orot nhtc hoeoermt rhc pecororme mchpoeprmnereshphiervenenhs isienvinvceseo i mvninececo iomnmceoeme 56 (56) and equity 56 5566(5566)(5(566)()56) and aeanqnduda ie nteqydqu ueitiqytuyity

b) Interest rate risk b) Inbtb)e )Ir nbIent)set tIer nretaesetstre ter arsaitse tkre ar itrseisk krisk The Group’s operating revenues and cash flow from operations are largely unaffected by changes in interest rates. Variations The iTGnThr hteohe uTGe phG r’ieosnr o utGouepprrp’oes’us roa ptop t’rpisean ertogarep at reimtenirvngaeg tyrni ,enr uehvgeveo srewne nauveuneevedsnes ruac ,aen ansdf dh face ncfacladost shwch ua f flsfroltohwom wfm lf orfoeorwproms emf’ r owa opmtipileol eironarpsgat eintaoireornaesnsts is lo a tanrorergs ei enla allvryareg ru sgelnatel,yar lgyi fnuf eeudnlcyniart aefueffcednftec albyctfeyft aed cfd fhbte ebaycdyn tc igbnchehygasa nct nighngea eis nGs git nreieon rsiu en ipinstne’ts erir neraoetstpestee rtsrer a.ra satVtteti anersrags.i ta. V ertVeasioarv. inreaVisantaituoriieonansstisons in thaienin n itdn ht tihcenae rits enhihnstee tf erlironeraewtsteste. rt rTe marhsatatet yer Gm,a mthraeooay uwmy,p ,eha hivoysoew ,p wrhe,r eoviamvwefefrae,rr vc,ai letafy frcf e,feu ecaxsctfpt ftoceo cumcsustees tdcortu somt’smo etw oeirnismrltls’ie ne’w rrgweisnlsil’li etlnwi snrgisagln ltitnenoes g rsinis tev kotse o asis n sittnv,so voei neicsndstiva,it re,tie ensicndtt,d il rwyienr iecadthctfilfrt yeloy can tafiglfnyfe-fg tecae cttfrifthnmeiengc g tdGti hnetrheobge utGt, p hGar’eosrn o udGoup prpt’ooes’us roa pop t’lpisen ersogarsp atereiternir vngdaeg etrni genruervgeve srenenuvueeesnsues and wacanaitndshdh a c cncfaaladosssh whch a.f a lfsTonlhohwd wef. l c .oTG aTwhrsheo.h e uT G ephGrq eoirus ouG iuvprpar oil smueis pna p trrisirsiml.i y mpTa rehariximerliyp laGy oer rseixoleyxpud pope ots'xosep edlioond stnt oetgo dri- ent itenstoetr merirnera etsdtestee rt rbe raristast tekmt er ara irstiineskol k yrac i asicaksotso neaocsdciias siwaottetscietd ihoad w ft l ewoaidtn ihtb ghw ol- oitnltoendhnrg molg-otf- ne tdNergemrO-bmtK etd, r d6emae3bn b7td,t e ,mat boanit nld,ali d oa tl noeto sda s a ntelo edrl e s ados etselhegerse rdse rde elegor gnrdergee-geree withtw cewiartimhsthw c iicantahnstesh dcrh aec asnahtnds- dhb ac enceaaadqsrsh uichn iaev gesqa hqdule ueienvibqvattsaul e.oli evnTf anthNslteOs. n.TGK tTh rs7heo. 0e uTG phmGr'eosri oluGliuoporpn'nos'gu.s l- pTotloehn'snreg mlg -obt- netodergnemr-dbmt etdi rsmdem eaba b tdif ntlmeo lmybaa taci inmnionlgnyaly sic niscolttoynesn sr coesiosifsstn tsat ss r ioba sofot fsean a dolbo fbo aaonfn ndNb, d owOo nofiKt dfNh 6 N oOa3OfK 7 dNK 6um O63rKia37ll t7 i6iomo 3mnni7 l ila olimlonifo ndi5nl l aoi yoantenhda ed aror sno t lhdtoahe noergdt rlh- ocleonorngu lg-po-onng- termto etifne r3mtre mtm eri enroimnstnet t-eribhnerests'east -Nrtbe-iInbeBsgeatO- arbdRirnei ng+abg rt di 5node gfe%b bNtd. t OoeA ofbK f+Nt 7 N/oO0-Of K 1mNK 7p Oi70lelK0 irom c7mnei0.lnil liTmltoiahonigenl.l e i.Tbo Thponheon. e idTnb hbtois eonc nadhbd aofi slnnios gda ea tifi slnifon lgaoa NatifintlInoBitngaeOg triRi enni nstgwet eroirnerauetstledste rt re ilamrosatatept ner al,a o clwtoate aint tnlh,o ,ew a a wnGi tdi,hrt uhow aru ia tpdht 'diu soaur nia rnd atotuiteofir orn5aen t osyi otfe nfe5a 5x roys pfye ea5ean arysdres aca sano rwnsdu di patc ohnconoduu pcpooonunpon of 3 aomopf ofp3 n3r omot fhmx o3siomn' mntNahtoIthsBens'O lt'Ny hRN Is-B I/+'B+ ONO R5INRB %+O O+K .R5 A5 7 +% +%m .5 /.Ai- l %Al 1i+o . +p n/A-e/ -p 1r+ ec1 p/er -p en y1ertec arpacegerne.rn t cOapteagtonhgeinte aptr gp ocleoihn inapntgn otc- gicthnehatr a nimcnngh geNaine nIiBt ngienO erN eR NIisBn IwtB O-NoObRIueRB law Odwro iRinoum guwldp lod aiue mcilmbtdp tt p aihomacefct p N tGta hOtrcheoKte u Gt 7phGr0'eosr oumGiunpirpt'losle'ius ori epnins't shet earienersxets peast ert efe niexxssxptee pedesen xiwnsnpseiteteshns rwse wesitstiht hwraiteh. apprFaoaipxpiempradorpa oxitpnxiemrtilmoeyaxr aet-iem/ts+eltya l yd Nt- e/O-+l/by+Kt N - e7N/O+x OmKp NK oi7l Osl7 ieomK smn i 7 ltilp hlimloeieonr i nlG ylpi roepeonaeru ryp. ye Otearot arhy .rf ea.O raiO rtrl hto.vh enOaerglt rulh- oteleoen rinrgn mlg-tot-e netirnergemtr-semtt eri enrimanstet -eribne rretsieast-krtbe-i.nb esAgeatt- ar bditrnehingabeg rt dci nodelogfeb s bNtde tOoe ofbK ffNt 7 2NoO0OfK 1mNK 57 Oi,70l lKt0 ihom 7meni0 lGilh limloarionsinul lahi poh a fnahsix s ahae da df si nfxi ineaxet edef cdi rxia eneisnstdhet e rirhneraoetstelsted rt.rei anrsatgtet ser. a.otfe. FixedNFFi OxiinxeKteFd e3di rxi5 enei7nstdet meridnerieetsllbestio rtd enedes xe(btNp btd oOte seKxbex pts1 po e7tosxh5sepe esmo s Gts ihtlerlheoisoe uGnt phG)r eotrao unG upfdrpa o tih ourta o pvfd a ft aileorui arvef rava niialnreu ltduveea e rNil enuiOnsteetK eri rne1raets temste rt rie rlarilsasitotekt ner. ra A(irstNitesk O tk.rh .KAi seA tk6 tc.t hlmtAohestie leclt ih cloolenofs )sec2 eil 0no 1o sfi 5enf2 ,t20o et01fhr 1e52e5s,0 Gt,t1 htir5nheo,ce uGto phGmr eohre ouaG updrp ouhn urhaeipandt dg hcn antehsdethe tcn chyaeaeostsh alcdh rahi. nhsogholds lhd ionoinfgldgsis no ogf fs of NOKVN 3NaO5OrK7iaNK 3tm Oi35oKi57lnl 7 is3om 5mnini7 li l( liNmloiIoOnBinl KlO(i No (R1NnO,7O K(S5NK T 1m OI17BKi75lOl 5 i1Rom 7mn ai5)liln liamlodinon iEdnl)l U i)aoh RananId)B d aOhe nhaRdadr nwd hee iaealdlda r an NrefneOfaedrKdc nN t 1eN Oi dnOmK tNKe i1l Orl1 ieomK smn ti1 li(li linNmloicoOnionl Kl(mi N o(6NenO O mKo(NKn i6l O l6c iomK amn si6)lhil lii mlonirone iinl)snl i)eito nerinv ri) en iin stnaet serii nerwetscesto rtlmile n iasncetsco doimtnuhmcereoie n dmG gdure uroti rhnudiengpu g ’rytsi hnet cheagae r ypt. hyeiteaa arly. rce.oasrt.s. VariaVtVaioarinraVisata itioriniona nNstis IoiB ninnO sN R NIiBn,I B OSNOTRIIRB,B ,OSO STRRTI,B IaSBOnTORdIRB aE OanURndR d aIE BnEUOdUR RREIB IUwBORiORlIlRB aw OfwifRleill claw taf ififlenlf ectaectf ftrie nicnstett erineretscesto rtmie nisncetco oimnnmce coe oam onsenh c ocareanssh ceh ar evsreshese arerevsrsv ewe are vaslles wa wases elt ll whla eaes s lGlt htarheose uGt phGr’eosr o uGcuparp’ops’us itc paca’laps cp ictoiatsalpt lsci t.coaoslst cstos. .sts.

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Maturity-analysis long-term debt* MatMuMraiatMyutu-rairtniuytay-rla-iytansynai-saly lnlysoasinsliysg ls o-litonsen grlgom-t-net gder-emrtmbe tdr *dmeeb bdt *te*bt *

2014 3-5 2014220011244014 1 year 2-3 years 3-5 33-5-53-5 5 years or later Amounts in NOK million 1 ye1a1 ry ye1ea aryrear 2-3 2y2-e3-a3 2ry sy-e3ea arysresars years 5 ye5a5 ry sye5 eao arys rels aao torres rlr aolatret elrarterTotal AmoAuAmnmotAsoum uninnot stuNs niO nitnK sN NimOnO KiNlKl imO omKnili llmiloioinlnli on yearysyeeaarysresars TotaTlTo ot atTa lol t a l Bond 44 89 716 - 849 BondBBoonndBdond 44 444 44 89 8899 87916 771166716 - - - 84-9 884499849 Other interest-bearing long-term debt - - - 404 404 OtheOrO tihtnhetOert rih enienstret -eribneretseats-rtbe-inbesgeat- arbliorneinngagg rl-i otnloengnrg mlg-ot- entdergemr-bmt etd rdemeb btdtebt ------404 440044404404 440044404 Total long-term debt 44 89 716 404 1 253 TotaTlTo lotoatTnalog ll to-latoneln grlgom-t-net gder-mertmbe dtr dmeeb bdttebt 44 444444 89 889987916771166716 4044400414 0245131 2 25153 3253

2015 3-5 2015220011255015 1 year 2-3 years 3-5 33-5-53-5 5 years or later Amounts in NOK million 1 ye1a1 ry ye1ea aryrear 2-3 2y2-e3-a3 2ry sy-e3ea arysresars years 5 ye5a5 ry sye5 eao arys rels aao tores rlr aolatret elrarterTotal AmoAuAmnmotAsoum uninnot stuNs niO nitnK sN NimOnO KiNlKl imO omKnili llmiloioinlnli on yearysyeeaarysresars TotaTlTo ot atTa lol t a l Bond 45 89 667 - 802 BondBBoonndBdond 45 4455 45 89 8899 86967 66677667 - - - 80-2 880022802 Other interest-bearing long-term debt - - - 404 404 OtheOrO tihtnhetOert rih enienstret -eribneretseast-rtbe-inbesgeat- arbliorneinngagg rl-i otnloengnrg mlg-ot- netdergemr-bmt etd rdemeb btdtebt ------404 440044404404 440044404 Total long-term debt 45 89 667 404 1 206 TotaTlTo lotoatTnalog ll to-latoneln grlgom-t-net gder-emrtmbe tdr dmeeb bdttebt 45 445545 89 889986967666677667 4044400414 0240161 2 20106 6206

*) Including interest payments *) In*c)*lu )I dnIn*icn)cl uglIund idcinnlitungedg rii enninstget eripneraetsyest mrtpe paesaytn ymtpsmaeye nmntstesn ts

Maturity-analysis financial short-term debt: MatMuMraiatMyutu-rairtniuytay-rla-iytansynai-saly lnfysiasnisliays fns ificnisnia aafnlin csciahainaol clrs itsha-htol eorsrthm-tot-et rdetr-emrtmbe tdr :dmeeb bdt:te:bt:

20212 04 012140 41240210414 0-300-3-030-033000-3-0630-03-360-060-036003-600-60 909-19020-910-012-2901029-0102-1020 AmAoAmumAonmoutusAno nmtiuAnstnos miNt unisonO Nui tKnNsnO OmtNiKsnKO i mli NlnKmioiO lNmilnlKilOoi olmnKlin oimlnliiollnion 606-9600-69 -d090a-06 9dy 00dsa6- a9y0dy0s-a9s yd0sa dyasys >1>2>1012> d201a0 >2dy 0d1sa> a2yd1y0sa2s yd0Tsa odyTtasaToylotTsatoaltlTaolTtaoltal dadydsaaydysasyddsaadydyasdsayaysdysasydsadyasys dadydsaaydysasydsadyasys AccAoAcucAncoctouscunA opntcusatAcs nyopc tapucasbaon yplyuateasanb ybtpleaslae bpylaeybaleble 10711007170710(1720)(72(2))(2)(2)(2) - - - - -27-227727 2727 - - - -13-2113-321232131232 OthOeOtrht Ohceeutrh rOc ercuetruhOr ncrreteur hrelnr iecnratreu bt l nircilalrituiaeb trlibnirelaietsltb inilteiitlaeis tblsiaeilibstileitsies 8888888 888-8 - - - - - 90990090 9090------676677672647526247452545242545 TotTaTolot Tcatoaul tlTrc arcouleTu trcnaoruertlt erancfrniluten tcrfna uriftneir nacnfriaeintnan caflctinan ifaclailinnaaclniaclial 19151995159519(1529)(52(2)()2)(2)(2) 90990090 902970227727 2727 67667767367737637773777373777 liablilaiilabiltbiiialeiiblltsiiitaeliliebsitasielbistiileitsies

202120501215051250210515 0-300-3-030-033000-3-0630-03-360-060-036003-600-60 909-19020-910-012-2901029-0102-1020 AmAoAmumAonomutusAno nmtiuAnstnos miNt unisonO Nui tKnNsnO OmtNiKsnKO i mli NlnKmioiO lNimlnlKilOoi olmnKlni oimlnliiollnion 606-9600-69 -d090a-06 9dy 0d0sa6- a9y0dy0s-as9 yd0sa dyasys >1>2>1012> d201a0 >2dy d01sa> a2yd1y0sas2 yd0Tsa odyTtasaToylotTsatoaltlTaolTtaoltal dadydsaaydysasyddsaadydyasdsayaysdysasydsadyasys dadydsaaydysasydsadyasys AccAoAcucAncocotuscunA onptcustaAcs nyopc tapucasbaon yplyuateasanb ybtpleaslae bpylaeybaleble 158115581858151825822 2 2 2 1 11 1 1311331131 3131 0 00 019021109921292191292 OthOeOtrht Ohceeutrh rOc ercuetruhOr ncreteru hrelnr iecnratreu tb l nircilalrituiaeb trlbinirelaieitsltb inilteiitlaeis tblsiaeilibstileitsies 49449949 494-9 -- - - - 96996696 9696------555555552505025205002000202000 TotTaTolot Tcatoaul tlTrc arcouleTu trcnaoruretlt erancfrniluten tcrfna uriftneir nacnfraieintnan caflctinan ifaclailinnaaclniaclial 202720072707202720722 2 2 2 97997797 973917331131 3131 555555553595325395923292393292 liablilaiilabiltbiiialeiilbltsiiitaeliliebsitasielbistiileitsies

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2014 2014 0-30 30- 60 90-1 20 Amounts in NOK million 60-90 days >120 days Total 0-30 30-60 days days90-120 days Amounts in NOK million 60-90 days >120 days Total Accoduanyts payadbaleys 107 (2) days - 27 - 132 Accounts payable Other1 c0u7rrent lia(b2il)ities 88 - - 27 90 - - 132 67 245 Other current liabilities Total c8u8rrent financial 90 - 67 245 195 (2) 90 27 67 377 Total current financial liabilities 195 (2) 90 27 67 377 liabilities 2015 2015 0-30 30- 60 90-1 20 Amounts in NOK million 60-90 days >120 days Total 0-30 30-60 days days90-120 days Amounts in NOK million 60-90 days >120 days Total Accoduanyts payadbaleys 158 2 days 1 31 0 192 Accounts payable Other1 c5u8rrent liabi2lities 49 1 - 31 96 0 - 192 55 200 Other current liabilities Total c4u9rrent financial 96 - 55 200 207 2 97 31 55 392 Total current financial liabilities 207 2 97 31 55 392 liabilities d) Credi t risk d) Credit risk C redit risk is the risk that customers will not set tle their ac counts. Credit risk is deeme d to be part of the Group’s overall Credit risk is the risk that custocmoemrsm werilcl inaol tr isek tatlned t hise firo lalocwcoeudn utsp. aCsr epdaitr tr iosfk i tis daeye-mtoe-d atyo obpee prarttio onfs t. hInef Grartoeukp h’sa so veesrtalbl lished procedures for credit commercial risk and is followeda uspse ass mpaerntt o off i tlas rdgaeyr -ctou-sdtaoym oeprse raantdio snusp. pInliferarste. kH ihsatosr eicsatlalyb,l ilsohsesde sp droucee tdou rbeasd f dore bctrse dhiat ve been insignificant and today’s level assessment of larger customerso fa cnrde dsuitp rpislike ris .c Hoinsstiodreicraeldly a, clocsespetsa bdluee. Ttoh eb aGdro duepb'sts m haaxviem bueme nc riendsigt neixfipcoasnut raen edq tuoadlsa yth’se l ecvaerrlying value of receivables and of credit risk is considered accebpatnabk lde.e pThosei tGs.roup's maximum credit exposure equals the carrying value of receivables and bank deposits. W ith regar ds to conc entration of credit risk, thre e custome rs primarily in the Norway a nd Sweden segments each contributed With regards to concentration orfe cvreenduite sri sokf ,m thorreee t hcuasnt o1m0%er os fp trhime atoritlayl irne vtheen uNeosr wofa yth aen gdr oSuwpe.d Teong seethgemr etnhtess e atchhre ceo cnutrsitboumteedrs contributed to revenue of revenues of more than 10% of tahpep rtoxtaiml raetveelyn uNeOsK o 1f .t3h1e5 g mroiullpio.n T o(2g0e1th4e: rN tOhKe s1e. 1t5h2re me iclluiosnto) mduerisn cgo 2n0tr1ib5u. tNeod ottoh reerv seingulee ocfustomers contributed 10% or more approximately NOK 1.315 milliotno (t2h0e1 G4r:o NuOp'Ks 1re.1v5e2n umeisll ifoonr )t hdeu ryinega r2 2001155. .No other single customers contributed 10% or more to the Group's revenues for the year 2015. A ge-analy sis long- term receivables Age-analysis long-term rece ivables 2 014 1 -3 5 yea rs Due date not 3-5 years 2014 1-3 year5s years Due dateo nro ltater determined Amounts in NOK million 3-5 years Total Amounts in NOK million P aid core-capyiteaal,r psension or later determined Total - - - 19 19 Paid core-capital, pension fund - - - 19 19 fund Subordinated loan, pension - - - 2 2 Subordinated loan, pension fund - - - 2 2 fund Total long-term - - - 21 21 Total long-term receivables - - - 21 21 receivables P aid-in cor e capital a nd loan to pension fund ha s been inco rporated as part of the gro ups pension assets during 2015. See Paid-in core capital and loan to npoetnes 1io7n f fourn idn fhoarms abteioen. incorporated as part of the groups pension assets during 2015. See note 17 for information. M aturity- analysis accounts

Maturity-analysis accounts receivable receivable

2014 2014 0-30 60-90 Amounts in NOK million Not due 30-60 days 90-120 days Total 0-30 days 60-90 days Amounts in NOK million Not due 30-60 days 90-120 days Total Accounts recedivaaybsle 380 28 days 3 2 3 416 Accounts receivable 380 28 3 2 3 416 2 015 2015 0- 30 60- 90 Amounts in NOK million Not due 30-60 days 90-120 days Total 0-30 days 60-90 days Amounts in NOK million Not due 30-60 days 90-120 days Total Accounts recedivaaybsle 478 29 days 3 1 9 520 Accounts receivable 478 29 3 1 9 520

C hanges in the all owance for doubtful deb ts Changes in the allowance foAr mdoubntfsu iln d NeObtKs million 2015 20 14 Amounts in NOK million B alance at beginning of the 2015 2014 (1) (2) Balance at beginning of the year (1) (2) year Impairment losses recognised on receivables (2) - Impairment losses recognised oAnm roeucenitvsa wbrleitsten off during the year as (2) - 2 1 Amounts written off during the uynecaor lalesctible (confirmed loss) 2 1 uncollectible (confirmed loss) Closing balance allowance (1) (1) Closing balance allowance for doubtful debts (1) (1) for doubtful debts e ) Catego ries of fi nancial instruments e) Categories of financial insTthreu Gmreounpts’s financia l instruments are categoriz ed as follow s: The Group’s financial instrumen ts are categorized as follows:

2015 2014

Amounts in NOK million Loans and receivables Total Loans and receivables Total

Assets Other long-term receivables - - 21 21 Accounts receivables and other receivables 680 680 623 623 (excluding non-financial receivables) 1) Cash and cash equivalents 357 357 175 175 Total financial assets 1 037 1 037 819 819

Other Financial Other Financial Amounts in NOK million obligations at Total obligations at Total amortized cost amortized cost Liabilities Bond 637 637 633 633 Other interest-bearing long- 69 69 63 63 term debt Accounts payable and other current liabilities 392 392 377 377 (excluding non-financial liabilities) 2) Total financial liabilities 1 098 1 098 1 073 1 073

1) Prepaid expenses and other receivables are not considered financial assets and are omitted compared to the line item in the statement of financial position. See also note 11. 2) Pre-invoiced income and other current liabilities are not considered financial liabilities and are omitted compared to the line item in the statement of financial position. See also note 14.

Nominal value less write-downs on sustained losses on accounts receivable and payable is deemed to equal the fair value of an item. As the interest on the bond is floating rate (NIBOR + 5 percent premium), the group has deemed the fair value to be equal to the carrying amount. No events have occured that are deemed to materially affect the premium since the bond 19 agreement was signed. f) Capital management The Group’s capital is managed with the goal of continued going concern, safeguarding and further developing the Group’s value and to ensure good credit rating and hence borrowing terms reflecting the operations of the Group.

The Group monitors its capital structure by following the developments in net debt as well as its leverage ratio, defined as Bond including accrued interest net of cash and cash equivalents divided by EBITDA ("earnings before interest, taxes, depreciation and amortization").

Net interest bearing debt Amounts in NOK million 2015 2014 Bond incl. accrued interest 642 638 Cash and cash equivalents (357) (175) Net interest-bearing debt 284 463 (cash) Leverage ratio 1,4 2,9

In relation to the issue of the bond in 2014 the group changed its follow up on capital management. The bond requires an incurrence test to be performed and met in order for Infratek Group AS to distribute funds. The incurrence test is to be tested pro forma immediately after a distribution. The test requires that the leverage ratio does not exceed 3.00, and that the interest coverage ratio (defined as LTM EBITDA divided by net LTM interest cost) exceeds 3.00. 2015 2014

Amounts in NOK million Loans and receivables Total Loans and receivables Total

Nominal value less write-downs on sustained losses on accounts receivable and payable is deemed to equal the fair value of an item. As the interest on the bond is floating rate (NIBOR + 5 percent premium), the group has deemed the fair value to be equal to the carrying amount. No events have occured that are deemed to materially affect the premium since the bond agreement was signed. f) Capital management The Group’s capital is managed with the goal of continued going concern, safeguarding and further developing the Group’s value and to ensure good credit rating and hence borrowing terms reflecting the operations of the Group.

Net interest bearing debt Amounts in NOK million 2015 2014 Bond incl. accrued interest 642 638 Cash and cash equivalents (357) (175) Net interest-bearing debt 284 463 (cash) Leverage ratio 1,4 2,9

NOTE 4 IMPORTANT ACCOUNTING ESTIMATES AND ASSUMPTIONS Estimates and assumptions are continuously evaluated, based on historical experience and other factors, including expectations as to future events deemed probable under the current circumstances. The Group prepares estimates and makes assumptions for projection purposes when preparing its financial statements. Accounting estimates only rarely accord fully with the final outcome. The differences that arise between estimates and fair value are recognised in the period they become known if they pertain to this period. If the difference pertains to both current and future periods, recognition is distributed over the periods in question.

Estimates and assumptions that can result in a significant risk of material change in the balance sheet value of assets or liabilities in the upcoming accounting year are discussed below.

Revenue recognition Recognition of income from fixed-price contracts uses the percentage-of-completion method. Current income recognition of projects entails uncertainty, as it is based on estimates and assessments. For projects in progress, there is uncertainty associated with progress on remaining work, disputes, work under guarantees, final projections, and other issues. Thus, the final outcome may deviate from the projected result. For completed projects, there is uncertainty associated with any hidden shortcomings, and possible customer disputes.

Estimated impairment of goodwill Each year the Group performs tests to assess the extent of impairment of goodwill, see note 2.6. The recoverable amount from cash-generating units is determined by calculating its value in use. These calculations require the use of estimates (see also note 7).

Deferred tax assets Deferred tax assets are recognised to the extent that it is probable that the tax assets will be realised. Significant judgement is required to determine the amount that can be recognised and depends on the expected timing, level of taxable profits and the existence of taxable temporary differences. The judgements relate primarily to tax losses carried forward in the Group’s parent company. When an entity has a history of recent losses the deferred tax asset arising from unused tax losses is recognised only to the extent that there is convincing evidence that sufficient future taxable profit will be generated.

Pension benefits The present value of the pension obligations associated with defined benefit plans depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of pension obligations.

The Group determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension liability. Some other relevant assumptions are partly based on regular market terms. For additional information, see note 17.

20 NOTE 5 BUSINESS SEGMENT REPORTING Group management constitutes the Groups leading authority. Operational segments are based upon Group management reporting guidelines when allocating resources and assessing profitability.

The Group's corporate structure consists of three business areas; Norway, Sweden and Finland, based on the entity’s delivery of products and services.

Segment information is presented for the Group’s business areas. The business segments reflect the Group's operations in the geographical areas and is based on the Group’s in-house reporting structure. Group management assesses the segments’ performance on the basis of an adjusted operating profit (EBIT). This method of measurement excludes the effect of non-recurring costs when the costs are the result of an isolated incident which is not expected to be repeated. In the segment table such costs are reported as part of the segment “Other” (Group). The accounting policies of the business segments are the same as those described in the summary of significant accounting principles, see Note 2.

An overview of business segments follows: Norway: Operations in Norway are organized within the areas Electrical Grids, Electrical Safety and Infra Solutions. Electrical Grids is aimed at the product areas distribution grids, transmision grids, transformer stations and power cables. Electrical Safety provides inspection and monotoring services on behalf of grid companies. Infra Solutions offers services within street lightning, metering and fiber/telecom.

Sweden: Operations in Sweden are organized within the areas Electrical Grids, Projects, Infra Solutions and Railway. Electrical Grids is aimed at the product areas distribution grids, transmision grids, transformer stations and power cables. Projects operates as an end-to-end supplieer of projects within the high voltage electrical infrastructure, while Infra Solutions offer services within street lightning, metering and fiber/telecom. Railway delivers services to constructors and owners of infrastructure for railway.

Finland: Operations in Finland delivers products and services within the central transmission grid, especially related to transformer stations.

Other (Group): This segment comprises mainly of group costs in the form of costs incurred by Infratek Group AS and Infratek AS in connection with the Board, CEO and Group Finance, day-to-day financial reporting, as well as shortfall of subleasing revenues from the company’s headquarters.

Eliminations: This comprises elimination of Group internal sales and profit from discontinued operations.

Segment information Amounts in NOK million Norway Sweden Finland Other Eliminations Group 2014 Gross segment operating revenue 1 061 1 474 232 6 - 2 773 Inter-segment sales 5 5 6 26 (42) - Operating revenues 1 066 1 479 238 32 (42) 2 773 Purchased material (410) (853) (119) - 14 (1 368) Gross profit 656 626 119 32 (28) 1 405 Personnel expenses (353) (440) (64) (34) - (891) Other operating costs (138) (158) (27) (32) 28 (327) EBITDA 165 28 28 (34) - 187 Depreciation and amortization (15) (10) (3) (8) - (36) EBIT 150 18 25 (42) - 151 Net financial income (expenses) 1 3 - (67) - (63) Profit (loss) before tax and discontinued 151 21 25 (109) - 88 operations Tax (41) (2) (5) 16 - (32) Profit from discontinued operations - - - - 35 35 Profit (loss) for the period 110 19 20 (93) 35 91

Amounts in NOK million Norway Sweden Finland Other Eliminations Group 2015 Gross segment operating revenue 1 002 1 425 274 12 - 2 712 Inter-segment sales 8 5 - 28 (40) - Operating revenues 1 010 1 429 274 40 (40) 2 712 Purchased material (371) (767) (150) - 12 (1 276) Gross profit 639 662 124 40 (28) 1 436 Personnel expenses (406) (426) (64) (34) - (929) Other operating costs (134) (153) (28) (20) 28 (308) EBITDA 98 83 32 (14) - 199 Depreciation and amortization (12) (12) (3) (11) - (38) EBIT 86 72 29 (25) - 161 Net financial income (expenses) 5 (3) - (59) - (57)

21 NOTE 5 BUSINESS SEGMENT REPORTING Group management constitutes the Groups leading authority. Operational segments are based upon Group management reporting guidelines when allocating resources and assessing profitability.

The Group's corporate structure consists of three business areas; Norway, Sweden and Finland, based on the entity’s delivery of products and services.

Finland: Operations in Finland delivers products and services within the central transmission grid, especially related to transformer stations.

Eliminations: This comprises elimination of Group internal sales and profit from discontinued operations.

Amounts in NOK million Group/ 2014 Norway Sweden Finland Group total eliminations Intangible assets (including deferred tax assets) 398 145 47 64 654 Fixed assets 44 41 20 8 113 Receivables and inventory 368 363 30 (77) 684 Cash and cash equivalents 369 7 120 (321) 175 Assets 1 179 556 217 (326) 1 626 Equity 844 278 164 (992) 295 Pension 126 - - 5 131 Other liabilities - 4 0 19 23 Bond - - - 633 633 Other long-term debt - 75 - (12) 63 Current liabilities 209 199 52 21 482 Equity and liabilities 1 179 556 217 (326) 1 626

Amounts in NOK million Group/ 2015 Norway Sweden Finland Group total eliminations Intangible assets (including deferred tax assets) 378 161 50 54 642 Fixed assets 33 32 19 5 89 Receivables and inventory 206 444 59 3 712 Cash and cash equivalents 560 12 150 (365) 357 Assets 1 177 648 278 (303) 1 800 Equity 895 362 200 (1 024) 432 Pension 63 - - (11) 51 Other liabilities - 4 0 9 14 Bond - - - 637 637 Other long-term debt - - - 69 69 Current liabilities 220 282 78 17 597 Equity and liabilities 1 177 648 278 (303) 1 800

22 N OTE 6 PROPERTY, PLANT AND EQUIPMENT N OTE 6 PROPERTY, PLANT AND EQUIPMENT Machinery, furniture, vehicles etc. Total Amounts in NOK million Machinery, furniture, vehicles etc. Total CAamroryuinntgs ainm NouOnKt masil loiof n1 January 2014 125 125 ACcaqruryisiintigo nasmount as of 1 January 2014 12254 12254 DAcisqpuoisiatli oonfs fixed assets at carrying value (244) (244) Disposal of dfiixsecdo natsinseutesd a ot pcearrarytiionngs value (34) (34) Deispproescaial toiof nd ifsrcoomnt cinounetidn uoipnegr aotpioenrastions (3(03) (3(03) Depreciation from dcoisnctoinutiinuge odp oepraetriaotniosns (3(01) (3(01) CDuerprreencciayt tiorann fsrloamtio dni sacdojnutsitnmuedn tosp aenrda toiothnesr (12) (12) Cuarrreynincyg taramnosluantito na sa dojuf s3t1m eDnetcse amndb eorth 2e0r 14 1132 1132 CAcaqruryisiintigo na cmoostusn ats a osf o31f 3D1e cDeemcbeemr b2e01r 42014 111635 111635 Acqcumisiutiloante cdo dstesp aresc oiaf t3io1n D aesc oefm 3b1e Dr e2c0e1m4 ber 2014 (15625) (15625) Accumulated depreciation as of 31 December 2014 (52) (52) C arrying amount as of 1 January 2015 113 113 ACcaqruryisiintigo nasmount as of 1 January 2015 1136 1136 DAcisqpuoisiatli oonfs fixed assets at carrying value (56) (56) Deispproescaial toiof nfi xferodm a scsoenttsi nauti ncagr orypienrga tviaolnuse (2(85) (2(85) CDuerprreencciayt tiorann fsrloamtio cno nadtijnuusitnmge onptes raantido nosther (284) (284) Cuarrreynincyg taramnosluantito na sa dojuf s3t1m eDnetcse amndb eorth 2e0r 15 894 894 ACcaqruryisiintigo na cmoostusn ats a osf o31f 3D1e cDeemcbeemr b2e01r 52015 18696 18696 Acqcumisiutiloante cdo dstesp aresc oiaf t3io1n D aesc oefm 3b1e Dr 2ec0e1m5 ber 2015 (17676) (17676) ACcacrurymiunlga taemd doeupnrte caisa toiofn 3 a1s Doef c3e1m Dbeceerm 2b0e1r5 2015 (7879) (7879) Carrying amount as of 31 December 2015 89 89 R ate of depreciation (in %) 7-33% Rate of depreciation (in %) 7-33% 2 014 A20n1n4ual leasing not recorded in the statement of financial position under property, plant and equipmen t: Annual leasing not recorded in the statement of financial position uMnidneimr purmop feurttuyr,e p plaanytm aenndt sequipment: Minimum future payments Premises rental Machinery/ equipment Total A mounts in NOK million Premises rental Machinery/ equipment Total DAumeo wuinthtsin i 1n yNeOaKr million 38 27 65 Due lwaittehri nt h1a nye 1a ryear not later than 5 years 3589 279 6858 Due later than 15 year snot later than 5 years 519 29- 818 DToutea llater than 5 years 981 56- 1541 Total 98 56 154 Recognized as operating lease expenses during year 37 31 68 R ecognized as operating lease expenses during year 37 31 68 2015 2A0n1n5ual leasing not recorded in the statement of financial position under property, plant and equipmen t: Annual leasing not recorded in the statement of financial position uMnidneimr purmop feurttuyr,e p plaanytm aenndt sequipment: Minimum future payments Premises rental Machinery/equipment Total A mounts in NOK million Premises rental Machinery/equipment Total ADumeo wuinthtsin i 1n yNeOaKr million 37 28 65 Due wlaittehri nth 1a nye 1a ryear not later than 5 years 367 2584 12615 Due later than 15 year snot later than 5 years 67- 514 121 DToutea llater than 5 years 104- 831 1871 Total 104 83 187 Recognized as operating lease expenses during year 42 42 84 Recognized as operating lease expenses during year 42 42 84

23 NOTE 7 INTANGIBLE ASSETS NOTE 7 INTANGIBLE ASSETS

Software and licences Total intangible assets Amounts in NOK million Goodwill Software and licences Total intangible assets Amounts in NOK million Goodwill Carrying amount as of 1 January 2014 554 38 592 Carrying amount as of 1 January 2014 554 38 592 Acquisitions of intangible assets - 5 5 Acquisitions of intangible assets - 5 5 Amortization - (7) (7) Amortization - (7) (7) Disposal of intangible assets - (4) (4) Disposal of intangible assets - (4) (4) Currency translation adjustments 15 - 15 Currency translation adjustments 15 - 15 Carrying amount as of 31 December 2014 569 32 601 Carrying amount as of 31 December 2014 569 32 601 Acquisition cost as of 31 December 2014 569 40 609 Acquisition cost as of 31 December 2014 569 40 609 Accumulated amortization as of 31 December 2014 - (8) (8) Accumulated amortization as of 31 December 2014 - (8) (8)

Carrying amount as of 1 January 2015 569 32 601 Carrying amount as of 1 January 2015 569 32 601 Acquisitions of intangible assets - 4 4 Acquisitions of intangible assets - 4 4 Amortization - (9) (9) Amortization - (9) (9) Currency translation adjustments 17 (1) 16 Currency translation adjustments 17 (1) 16 Carrying amount as of 31 December 2015 586 26 611 Carrying amount as of 31 December 2015 586 26 611 Acquisition cost as of 31 December 2015 586 43 629 Acquisition cost as of 31 December 2015 586 43 629 Accumulated amortization as of 31 December 2015 - (17) (17) Accumulated amortization as of 31 December 2015 - (17) (17) Carrying amount as of 31 December 2015 586 26 611 Carrying amount as of 31 December 2015 586 26 611

Rate of depreciation (in %) na 10 - 33% Rate of depreciation (in %) na 10 - 33%

Goodwill impairment testing Goodwill impairment testing Management is reviewing the business performance based on geography. Within each country, legal entities have been defined bMya nmaagneamgenmt eisn tr eavsi ethwein logw theest b leuvsienle gsesn peerraftoinrmg ainndcep beansdeedn ot nc agseho ignrfalopwhsy.. TWhieth ginro euapcsh l ecgoauln etrnyt,i tlieegsa tlh eenretiftoierse hcaovnest biteueten tdheefined bCyG Umsa onfa tgheem gernotu aps. Gthoeo dlowwilel shta lse vbeele gne anleloracetidn gto i ntdhep CeGnUdes nbta csaesdh o in fmlowansa. gTehme egnrotsu pass slegssaml eenntti toief sw thhiecrhe CfoGreU sc oanrest eitxupte cttheed to pCrGoUdsu coef tahded gedro vuapl.u Ge.o Godowodillw hilal sh abse ebne eanll oaclleodc atote tdh eto C eGaUchs bCaGsUe da so ns hmowanna bgelmowen: ts assessment of which CGUs are expected to produce added value. Goodwill has been allocated to each CGU as shown below:

Amounts in NOK million Amounts in NOK million Cash generating unit Segment Goodwill Cash generating unit Segment Goodwill Infratek Norge AS Norway 380 Infratek Norge AS Norway 380 Infratek Sverige AB Sweden 156 Infratek Sverige AB Sweden 156 Infratek Finland AB Finland 49 Infratek Finland AB Finland 49 Total goodwill 586 Total goodwill 586

Turnover, margins and investments are based on management budgets for 2016 as well as projections for the interval 2017 to 2Tu0r2n0o. vBears, emda orgni npsro ajencdt iionnvse sfotmr 2e0n1ts7 atroe 2 b0a2s0e,d a onn a mnnaunaalg germowentht brautdeg oeft s3 fpoer r2c0e1n6t haass w beelle ans e pmropjleocyteiodn. sT hfoer ttehrem iinntaelr val u2e0 i1s7 to 2fu0r2th0e. rB baasesedd o onn p trhoeje catisohn sfl ofowr f2o0r1 y7e taor 2020, awnh earnenausa al ng raonwntuha rla gtreo owft h3 rpaetrec enqtu hivaasl ebnete tno e1m.7p5l opyeerdce. nTth efo tre armll sinuabls vidailaureie iss is efumrtphleory ebda.s eTdh eosne tchoen csaidsehr afltoiown fso ar ryee oanr 2a0v2e0ra, gweh ienr elianse awni tahn tnhuea gl egnroewratlh e rxapte cetqeudi veacloennotm toic 1 g.7ro5w ptehr c(iennflta ftoior na)l lf osru bthseid ciaoruienst riises ewmheprleo yIendfr.a Ttehke sise ocpoenrsaidtienrga.t iAosn sfo ar rteh eo nt earvmeirnaagle v ianlu lien,e t hwei trhe itnhvee gsetmneernatl ceoxrprecspteodn desc oton oemxpice gctreodw tdhe p(irnefclaiatitoionn) foofr tthhee ucnoiut`nst rfiiexsed washseertes .I nInfr oartdeek ri st oo pcaepratutirneg a. sAssu fmore tdh rei stke,r ma dinisacl ovuanlut er,a tthee b reefionrvee tsatxm oefn 8t .c6o prreerscpeonnt dfso rt oN oerxwpaeyc,t e8d.3 d peeprceecniatt fionr Sowf tehdee nu naint`ds 8fi.x2ed pasesrecetsn.t I nfo or rFdinerla tnod c haapstu bree ans seummpelody reidsk a, sa WdiAsCcoCu onnt rcaatseh b felofowrse bteafxo oref 8ta.6x .p Werictheinnt tfhoer NCGorUwsa, yth, e8r.3e phearvcee bnet efonr nSow iemdpeani ramnedn 8t.2 pwerirtcee-ndto wfonr sF in la2n0d1 5h.as been employed as WACC on cash flows before tax. Within the CGUs, there have been no impairment write-downs in 2015.

Sensitivity analysis for key assumptions Sensitivity analysis for key assumptions Group management considers net cash flows for the interval 2017 to 2020, WACC and growth rate in terminal value as key aGsrsouump pmtiaonnasg. eTmhee nGtr ocuonps hidaesr ps enrefot rcmasehd falo swesn sfoitriv tihtye ainntaelryvsaisl 2fo0r1 a7l lt ok e2y0 a2s0s, uWmApCtiCo nasn db yg rtoewsttinhg r atote w inh itcehr mexinteanl tv athluees ea sm kuesyt be adssjuusmtepdti oton sa.r Trihve Gatr oaunp i mhapsa ipremrefonrtm seitdu aat isoenn. sTithivei tbye alonwa ltyasbisle f osrh aolwl sk etyh ea sassusmumptpiotinosn sb yth taets itnindgiv tiod uwahlliyc hm euxstte bnet tehmepselo myeuds tt obe ardrjiuvset eadt aton aimrrpivaei ramt eannt ismitpuaitrimone:nt situation. The below table shows the assumptions that individually must be employed to arrive at an impairment situation: Key assumption Key assumption CF CAGR Growth rate CF CAGR Growth rate Cash generating unit 2017-2020 TV WACC Cash generating unit 2017-2020 TV WACC Infratek Norge AS -24% -90% 24% Infratek Norge AS -24% -90% 24% Infratek Sverige AB -35% -100% 42% Infratek Sverige AB -35% -100% 42% Infratek Finland AB -28% -100% 67% Infratek Finland AB -28% -100% 67%

24 NOTE 8 CONSTRUCTION CONTRACTS

Amounts in NOK million 2015 2014 Total operating revenues 2 712 2 773 - of which contract revenues 1 298 1 269 Sales of goods and services 1 414 1 504

Current contracts as of 31 December Incurred contract expenses 31 December 674 813 Incurred contract profit 31 December 53 67 Progress billings (797) (861) Net value contracts in progress 31 December (70) 19

Statement of financial position amounts of: Incurred, not invoiced 35 67 Pre-invoiced to customer (105) (48) Net value contracts in progress 31 December (70) 19

Remaining production on contracts with estimated loss* 21 8 *) Estimated production losses on remaining contracts, are recognized to the fullest in profit or loss.

NOTE 9 INVENTORY

Amounts in NOK million 2015 2014 Purchased goods for resale 6 5 Total inventory 6 5

Write-down of inventory recognized as expense during period: - - Total cost of inventories recognized as expense during period *) 517 660

*) The cost of inventories comprises purchased materials excluding expenses related to subcontractors.

NOTE 10 OTHER LONG-TERM RECEIVABLES

Amounts in NOK million 2015 2014 Paid core-capital, pension fund - 19 Subordinated loan, pension fund - 2 Total other non-current receivables - 21

Paid-in core capital and loan to pension fund has been incorporated as part of the groups pension assets during 2015. See note 17 Pension expenses, assets and liabilities for information.

NOTE 11 ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

Amounts in NOK million 2015 2014 Accounts receivable 521 417 Bad debt reserve (1) (1) Net accounts receivable 520 416 Accrued revenues 160 207 Prepaid expenses 12 16 Other receivables 14 19 Total accounts receivable and other receivables 706 658

25 NOTE 12 CASH AND CASH EQUIVALENTS

Amounts in NOK million 2015 2014 Bank deposits in Group account system 343 174 Bank deposits outside the Group account 14 1 Total bank deposits 357 175

Split by currency NOK 196 48 SEK 12 7 EUR 150 120 Total bank deposits 357 175

The Group employs the Group account system in Swedbank as per 31.12.2015. A group account system entails joint and several liability for participating companies. Infratek Group AS does not participate in the Group account system. Infratek AS’s accounts constitute the only accounts connected to the banks whereas deposits and withdrawals concerning the subsidiaries’ accounts consist of internal accounts with Infratek AS. Participating companies in the Group account system have a joint guarantor liability for consolidated withdrawals in the Group account system.

The Group has a credit facility of MNOK 80 and an overdraft facility of MNOK 20 with Swedbank, of which NOK 0 is drawn per 31.12.2015.

Restricted cash and cash equivalents Amounts in NOK million 2015 2014 Downpayment deposits 1 1 Other restricted cash and cash equivalents* 18 17 Total restricted cash and cash equivalents 19 18

*) Other restricted cash and cash equivalents comprises funds for social and educational purposes benefiting the employees of the Infratek Group.

NOTE 13 ADDITIONAL EQUITY SPECIFICATIONS

Share capital and share premium As of 31 December, Infratek’s share capital and share premium was as follows:

Amounts in NOK million, except number of shares and Number of Par Share Share Total par value shares value capital premium

As of 31 December 2014 31 1 100 - 253 253 As of 31 December 2015 31 1 100 - 253 253

All shares in Infratek Group AS are owned by Heraldic Midco s.a.r.l.

No dividends were paid in 2014 og 2015. The Board proposes a dividend of MNOK 135 based on 2015 results to be paid in 2016.

Non-controlling interests During the first quarter of 2014, the remaining 20.5 per cent of non-controlling interest in Infratek AS were acquired by Infratek Group AS for a total consideration of NOK 234 million reducing non-controlling interests to zero as of 31 December 2014. These transactions were recognised as equity transactions in the consolidated financial statements, and a loss of NOK 37 million was recognised in controlling interests in the equity statement.

NOTE 14 ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES

Amounts in million NOK 2015 2014 Accounts payable 192 132 Public duties payable 96 90 Incurred expenses 104 155 Pre-invoiced income 157 58 Other current liabilities 34 43 Total accounts payable and other current liabilities 583 478

26 NOTE 15 LONG-TERM DEBT

Amounts in million NOK 2015 2014 Bond 637 633

Other long-term debt 69 62 Other long-term interest-bearing debt 1 1 Total other interest-bearing long-term debt 69 63

In May 2014, Infratek Group AS issued a bond of NOK 650 million, with the duration of 5 years and coupon of 3 months’ NIBOR + 5 percent. Initial transaction fees of NOK 18.4 million related to the bond issue have been recognised as part of the carrying amount in the statement of financial position. The bond is carried at amortized cost. Fair value of the debt is assessed to be equal to the recognised amount. The bond was listed on the Oslo Stock Exchange on 17 December 2014.

Investors have a share pledge in Infratek Group AS' investment in Infratek AS.

The bond agreement has restrictions related to distribution of funds from the Group. The bond agreement requires an incurrence test to be performed pro forma imediately after a distribution of funds. The incurrence test requires that the leverage ratio (net interest bearing debt excluding debt to Triton Funds to EBITDA < 3.0x) and interest coverage ratio (EBITDA to interest costs > 3.0x).

Other long-term debt has maturity date in 2034 and interest rate of 10 percent. Accrued interest is not required to be paid in cash but is added to the amount of the loan at each anniversary date and will bear interest in accordance with the loan agreement.

NOTE 16 DEFERRED TAX

Amounts in NOK million 2015 2014 Deferred tax assets that is expected realised in more than 12 months 31 53 Deferred tax assets that is expected realised within 12 months - - Deferred tax assets recognised in the statement of financial position as of 31 December 31 53

Deferred tax that is expected realised in more than 12 months (4) (4) Deferred tax that is expected realised within 12 months - - Deferred tax liabilities recognised in the statement of financial position as of 31 December (4) (4)

Amounts in NOK million 2015 2014 Net deferred tax assets (liabilities) at the beginning of the period 49 66 Recognized in the income statement during the period (13) (26) Tax effect of actuarial gains and losses through Other Comprehensive Income (OCI) (9) 8 Currency translation adjustments and other changes - 1 Net deferred tax assets (liabilities) as of 31 December 27 49

Specification deferred tax asset

Loss carry Operating Construction Amounts in NOK million Pensions Other Total forward assets contracts Deferred tax assets as of 1 January 2014 54 8 3 (6) 11 70

Tax effect of actuarial gains and losses 8 - - - - 8 through OCI Recognized in the income statement in the (28) 5 - 1 (4) (26) period Deferred tax assets as of 31 December 35 13 3 (5) 7 53 2014

Tax effect of actuarial gains and losses (9) - - - - (9) through OCI Recognized in the income statement in the (8) (1) (1) (0) (2) (13) period Deferred tax assets as of 31 December 18 12 2 (5) 5 31 2015

Specification deferred tax liabilities

Loss carry Operating Amounts in NOK million Other Total forward assets Deferred tax liability as of 1 January 2014 (1) (3) - (4)

27 Recognized in the income statement in the period 1 (1) - - Deferred tax liability as of 31 December 2014 - (4) - (4)

Recognized in the income statement in the period - - - - Deferred tax liability as of 31 December 2015 - (4) - (4)

The Group has a total of NOK 112 million in carry forward losses and NOK 17 million in carry forward interest deduction to related parties. Both are related to the operations in Norway and may only be utilized against taxable profits in Norway. No deferred tax asset has been recognized related to carry forward interest deduction to related parties, while deferred tax asset related to carry forward losses has been recognized to the extent the realisation of the tax benefit is probable. Tax losses in Norway related to carry forward interest deductions expire after 10 years, while tax losses related to carry forward losses in Norway has no expiration date.

During 2015, the group has reclassified MNOK 15 from carry forward losses to carry forward interest deduction. The reclassification is related to 2014 losses and had no effect on the group's booked deferred tax asset related to carry forward losses.

Deferred tax is presented net within each tax regime when the Group has a legal right to offset deferred tax benefits in the statement of financial position. NOTE 16 DEFERRED TAX

Specification deferred tax asset

Loss carry Operating Construction Amounts in NOK million Pensions Other Total forward assets contracts Deferred tax assets as of 1 January 2014 54 8 3 (6) 11 70

Tax effect of actuarial gains and losses 8 - - - - 8 through OCI Recognized in the income statement in the (28) 5 - 1 (4) (26) period Deferred tax assets as of 31 December 35 13 3 (5) 7 53 2014

Specification deferred tax liabilities

Loss carry Operating Amounts in NOK million Other Total forward assets Deferred tax liability as of 1 January 2014 (1) (3) - (4)

Recognized in the income statement in the period 1 (1) - - Deferred tax liability as of 31 December 2014 - (4) - (4)

Recognized in the income statement in the period - - - - Deferred tax liability as of 31 December 2015 - (4) - (4)

Deferred tax is presented net within each tax regime when the Group has a legal right to offset deferred tax benefits in the statement of financial position.

NOTE 17 PENSION EXPENSES, ASSETS AND LIABILITIES Group companies have different pension plans organised in pension funds and insurance companies. Pension schemes are generally funded through payments made by the companies, determined on the basis of actuarial calculations or as a fixed percentage of the individual employee’s salary. The Group has both defined contribution and defined benefit plans.

Pension liabilities and assumptions Amounts in million NOK 2015 2014 Present value of accrued pension liabilities for defined benefit plans in fund-based plans 700 713 Fair value of pension assets (729) (675) Actual net pension liabilities for defined benefit plans in fund-based plans (29) 38 Present value of liabilities non-fund-based plans 68 75 Social security contribution 13 19 Net pension liabilities in the statement of financial position (after social security 51 131 contribution)

Changes in defined benefit pension liabilities during the year: Pension liabilities as of 1 January (excl. social security contribution) 788 748 Present value of pension earnings 14 15 Interest expenses 19 30 Actuarial gains and losses (23) 61 Pension payments (23) (21) Liabilities due to plan changes - (45) Settlement (7) - Pension liabilities as of 31 December (exclusive of social security contribution) 768 788

Change in fair value of pension assets: Fair value of pension assets as of 1 January 675 572 Expected yield on pension funds 17 23 Actuarial gains and losses 8 32 Total contribution 40 75 Total payments from funds (25) (27) Settlement (8) - Inclusion of loan and equity as part of pension assets 21 - Fair value of pension assets as of 31 December 729 675

Paid-in core capital and loan to pension fund has been incorporated as part of the groups pension assets during

2015.

Actual financial income on pension funds for 2015 was NOK 25 million (NOK 55 million).

Movement in actuarial gains and losses recognized in other comprehensive income: 28 Amount recognized in comprehensive income 1 January 12 (16) Recognized in other comprehensive income in the period (34) 28 Amount recognized in other comprehensive income 31 December (22) 12 Deferred tax recognized in comprehensive income 1 (4) 4 January Deferred tax related to actuarial losses recognized in other comprehensive income 9 (8) Deferred tax recognized in other comprehensive income 31 December 5 (4) Net amount recognized in other comprehensive income after tax 31 December (17) 8

In accordance with IAS 19 the interest rate that is used to discount the pension liability may be established using high-quality corporate bonds in Norway, if an active market for such high-quality bonds exists. The Group has chosen to use the discount rate derived from such high-quality bonds instead of the interest rate for government bonds.

Calculations are based on the following assumptions: 2015 2014 Discount rate 2,80% 2,50% Expected yield on pension funds 2,80% 2,50% Salary growth 3,10% 3,10% Social security base amount (G) 3,10% 3,10% Annual social security pension growth - Private Funds 0,10% 0,10% Annual social security pension growth - Public Funds 2,35% 2,35%

Average turnover for employees is assumed at 2.9 % in 2015 and 2.7 % in 2014.

Pension effect on profit and loss statement Total pension expenses recorded in profit and loss statement: NOTE 17 PENSION EXPENSES, ASSETS AND LIABILITIES Group companies have different pension plans organised in pension funds and insurance companies. Pension schemes are generally funded through payments made by the companies, determined on the basis of actuarial calculations or as a fixed percentage of the individual employee’s salary. The Group has both defined contribution and defined benefit plans.

Paid-in core capital and loan to pension fund has been incorporated as part of the groups pension assets during

2015.

Actual financial income on pension funds for 2015 was NOK 25 million (NOK 55 million).

Movement in actuarial gains and losses recognized in other comprehensive income: Amount recognized in comprehensive income 1 January 12 (16) Recognized in other comprehensive income in the period (34) 28 Amount recognized in other comprehensive income 31 December (22) 12 Deferred tax recognized in comprehensive income 1 (4) 4 January Deferred tax related to actuarial losses recognized in other comprehensive income 9 (8) Deferred tax recognized in other comprehensive income 31 December 5 (4) Net amount recognized in other comprehensive income after tax 31 December (17) 8

Average turnover for employees is assumed at 2.9 % in 2015 and 2.7 % in 2014.

Pension effect on profit and loss statement Total pension expenses recorded in profit and loss statement:

Amounts in million NOK 2015 2014 Defined benefit plans: Cost of present period’s pension earnings 14 15 Interest expenses 20 31 Expected yield on pension funds (17) (23) Social security contribution 2 2 Administrative expenses 2 2 Members’ contributions (1) (1) Change in pension plans - (45) Employer’s contribution to non-capitalized defined benefit schemes in foreign subsidiaries 32 32 Pension costs, defined benefit plans 51 13 Defined contribution plans: Employer’s contribution to defind contribution plans 30 29 Total pension expenses 81 42

Total pension costs are classified as: Salaries and other personnel costs 78 34 Net finance 2 8 Total pension costs 81 42

Expected contributions to the post-employment benefit plans for the year ending 31 December 2016 are NOK 96 million excluding public duties.

Specification pension fund assets Amounts in million NOK 2015 2014 Equity instruments 331 45% 311 46% Interest-bearing instruments 358 49% 365 54% Bank 40 6% 0 0% Fair value of pension assets 729 100% 675 100%

Specification pension fund assets 2015

Quoted prices in active Significant Significant other markets for identical unobservable Total observable input instruments input

Level 1 Level 2 Level 3 Equity instruments 0% 35% 11% 45% Interest-bearing 5% 44% 0% 49% instruments 29 Bank 6% 0% 0% 6% Total 11% 78% 11% 100%

Sensitivity analysis Infratek has carried out a sensitivity analysis for the net pension liabilities and estimated pension-related costs. The tables below illustrate the effect of a one percentage point change in the discount rate, salary increases and change in the social security base amount (G) on the net pension liability and pension-related costs, given the original assumptions as described in the table above.

Sensitivity analysis for the defined benefit obligation NOK million Discount rate Salary growth Change in G Percentage point + 1 % - 1 % + 1 % - 1 % + 1 % - 1 % change Net pension (121) 168 38 (31) 117 (87) liabilities Deferred tax - / tax (30) 42 10 (8) 29 (22) asset Effect on equity (91) 126 29 (23) 88 (65)

Sensitivity analysis for estimated pension-related costs NOK million Discount rate Salary growth Change in G Percentage point + 1 % - 1 % + 1 % - 1 % + 1 % - 1 % change Pension cost (2) 3 2 (1) 1 (1) Financial expenses (4) 3 1 (1) 3 (2) Total pension cost (7) 6 3 (2) 5 (4) Amounts inA moilulinotns NinO Kmillion NOK 2015 20210415 2014 Defined beDneffiint epdla bnesn: efit plans: Cost of presCeonst tp oefr iporde’se pnet npseiorino de’asr npienngssion earnings 14 1514 15 Interest expIennteseresst expenses 20 3120 31 Expected yieElxdp oenct peedn ysiieolnd founn dpsension funds (17) (2(31)7) (23) Social securSitoyc ciaoln stericbuurtiitoyn contribution 2 2 2 2 AdministratiAvdem eixnpisetnrsaetisve expenses 2 2 2 2 Members’ coMnetmribbuetriso’n csontributions (1) (1()1) (1) Change in pCehnasinogne p ilna npsension plans - (45) - (45) Employer’s Ecomnptrloibyuetri’osn c toon tnroibnu-ctiaopni ttaol izneodn -dceafpiniteadli zbeedn deefifti nsechde bmeense fiint sfocrheeimgne s uinb sfiodrieairgiens subsidiaries 32 3232 32 Pension coPsetsn,s dioenfi ncoesdt sb,e dneffiint epdla bnesnefit plans 51 1351 13 Defined coDnetrfiibnuetdi ocno nptlarinbsu:tion plans: Employer’s Ecomnptrloibyuetri’osn c toon tdreibfiuntdio cno tnot rdibeufitniodn c polnatnrisbution plans 30 2930 29 Total pensTioont aelx ppeennssieosn expenses 81 4281 42

Total pensTioont aclo psetsn sairoen c claosstsif iaerde acsla: ssified as: Salaries andS oatlahreier sp earnsdo nontheel rc opsetrssonnel costs 78 3478 34 Net finance Net financ e 2 8 2 8 Total pensTioont aclo psetsnsion costs 81 4281 42

Expected coEnxtpriebcutteiodn cso tnot rtihbeu tpionsts- etom tphleo ypmosetn-et mbepnloeyfimt pelnatn bs efnoer ftiht ep lyaenasr feonr dthineg y 3e1a rD eencdeimngb e3r1 2 D0e1c6e amreb eNrO 2K0 1966 are NOK 96 million exclumdiilnligo np uebxlciclu duintgie sp.ublic duties.

SpecificatiSonp epceifnicsaiotnio fnu pnedn assiosent fsund assets Amounts inA moilulinotns NinO Kmillion NOK 2015 2015 2014 2014 Equity instruEmqueintyts instruments 331 45%331 31415% 46%311 46% Interest-beaIrnintegr einsst-tbruemareinngts instruments 358 49%358 36459% 54%365 54% Bank Bank 40 6%40 06% 0% 0 0% Fair value Foaf ipr evnasluioen o afs psentssion assets 729 1007%29 160705% 1006%75 100%

SpecificatiSopn epceifnicsaiotnio fnu pnedn assiosent fsu 2n0d1 a5ssets 2015

Quoted priQceuso tine da cptriivcees in active SignificantSignificant SignificantS oigthneifricant other markets fomr iadreknetisc afol r identical unobservaubnleobservable Total Total observableo ibnspeurtvable input instrumentisnstruments input input

Level 1 Level 1 Level 2 Level 2 Level 3 Level 3 Equity instruEmqueintyts instruments 0% 0% 35% 35% 11% 11% 45% 45% Interest-beaIrnintegrest-bearing 5% 5% 44% 44% 0% 0% 49% 49% instrumentsi n s t r u m ents Bank Bank 6% 6% 0% 0% 0% 0% 6% 6% Total Total 11% 11% 78% 78% 11% 11% 100% 100%

SensitivityS aennasliytsivisity analysis Infratek hasI ncafrrartiedk ohuats ac asrerniesdit iovuitty a a sneanlyssitiisv iftoyr athnea lnyseits pfeonr sthioen nlieatb pileitniessio ann ldia ebsiltiitmieas taendd p esntsimiona-treedl aptends cioons-trse. lTahteed t acbolsets. The tables below illustrbaetelo twh eil leufsftercatt eo ft hae o enfefe pcet rocfe an toangee ppeoricnet ncthaagneg peo iinn t hceh adnisgceo uinn t hrea tdei,s scaoluanryt rinatcere, asaselasr ya nindc crehasnegse ain dt hceh asnocgiea lin the social security bassee acumroituyn bta (sGe) aomn othuen tn (eGt )p oenn sthioen nlieatb pileitnys aionnd lpiaebnilsitioyn a-rnedl aptends cioons-trse, lgaitveedn c tohset so, rgigivineanl tahses uomrigpitnioanl sa sassu dmepstciroinbse das described in the table ianb tohvee t.able above.

SensitivityS aennasliytsivisit yfo ar ntahley sdies ffionre dth bee dneffiint eodb lbigeanteiofint obligation NOK millioNnOK million Discount raDtiescount rate Salary growSathlary grCohwatnhge in CGhange in G Percentage Ppeoricnet ntage point + 1 % + 1 % - 1 % - 1 % + 1 % - +1 1% % + 1- %1 % - +1 1% % - 1 % change change Net pensionNet pension (121) (121) 168 168 38 (31)38 11(371) (871)17 (87) liabilities liabilities Deferred taxD -e f/e trarxed tax - / tax (30) (30) 42 42 10 (8)10 29(8) (22)29 (22) asset asset Effect on eqEufifteyct on equity (91) (91) 126 126 29 (23)29 8(283) (65)88 (65)

SensitivityS aennasliytsivisit yfo ar neasltyismisa tfeodr epsetnimsiaotne-dre plaetnesdi ocno-srteslated costs NOK millioNnOK million Discount raDtiescount rate Salary growSathlary grCohwatnhge in CGhange in G Percentage Ppeorincet ntage point + 1 % + 1 % - 1 % - 1 % + 1 % - +1 %1 % + 1- %1 % - +1 %1 % - 1 % change change Pension costPension cost (2) (2) 3 3 2 (1) 2 1(1) (1) 1 (1) Financial exFpiennasnecsial expenses (4) (4) 3 3 1 (1) 1 3(1) (2) 3 (2) T otal pensioTno ctaols pt ens ion cost (7) (7) 6 6 3 (2) 3 5(2 ) (4) 5 (4) In addition to the above sensitivities, the Group has estimated that a change from GAP2007 to K2013BE would increase the pension liability by NOK 41 million, with a net after-tax effect on equity of NOK 31 million as per 31.12.2015. Infratek has consistantly applied GAP2007 mortality estimates produced by Gabler and considers this to be the best estimate for mortality assumptions.

The estimates are based on facts and conditions as of 31 December 2015. Actual results could therefore deviate from these estimates to a material extent.

Change in pension plans Norway In September 2014, Norsk Regnskapsstiftelse publicized an updated statement on the accounting for change in pension plan related to life expectancy adjustment and change in disability benefits on public pension plans. Infratek has implemented this change in its actuarial calculations as per 31 December 2014 with a total positive effect on the profit for the year of NOK 45 million. The table below shows the breakdown of the change of pension plan effect on profit for 2014.

NOK million 2015 2014 Life expectancy adjustment (secured pension scheme) - 40 Life expectancy adjustment (non-secured pension scheme) - (10) Change in disability benefits - 15 Total effect on profit of change in pension plan - 45

Pensions in Norway Pursuant to Norway’s law on mandatory service pensions, defined contribution plans have been established in all Norwegian companies. The Group’s mandatory service pension schemes (OTP) for employees in Norway are administered by DNB and Storebrand.

As of 31 December 2015, 271 employees were covered by defined benefit plans, divided between Hafslund Private Pensjonskasse (50), Hafslund Offentlige Pensjonskasse (177) and KLP (44). As of 31 December 2015, 157 people were receiving pensions under these schemes, divided between Hafslund Private Pensjonskasse (14), Hafslund Offentlige Pensjonskasse (73) and KLP (70). In addition, the Group has defined contribution plans with various insurance companies. The defined benefit plans belonging to the Hafslund Group’s two pension schemes, of which Infratek is a member, were closed to new members with effect from 1 January 2007. Since January 2007, defined contribution plans were introduced for all new employees and for employees who were not previously included in a pension scheme in the Group’s Norwegian businesses.

Pension assets are valued at fair value as of the year-end. Pension liabilities (net present value of pension payments earned 30 per the balance sheet date, adjusted for future salary growth) are valued using best estimates based on assumptions as of the balance sheet date. The actuarial gain in 2015 is mainly due to an increased discount rate in 2015 compared to 2014. The actuarial estimates of pension liabilities have been prepared by independent actuaries. The assumptions regarding salary growth, increase in pension payments, and change in G are based on historic observations, established tariff agreements, and the relationship between certain assumptions.

Employees who terminate employment before reaching retirement age receive paid-up policies. Hafslund's and Infratek's pension funds manage these paid-up policies, which are associated with earned rights in municipal contribution plans. Infratek has a financial commitment to upwardly adjust these paid-up policies in line with increases in the social security base amount. At such time as paid up policies that have been earned in other contribution plans are issued, Infratek is released from further obligations to the employees to which the policies pertain. Assets and liabilities are valued at the time of issuance of the paid-up policy and are separated from pension assets and liabilities.

Other demographic assumptions that have been used in the calculation of Norwegian defined benefit pension liabilities are as follows: for mortality and disability, Norwegian life insurance companies’ table GAP2007. The expected yield on pension assets is based on the interest for high-quality corporate bonds taking into consideration the remaining term, which is the same discount rate used for pension liabilities. The value-adjusted yield on pension assets was 3.6 percent in 2015 and 8.8 percent in 2014.

Pension assets are per 31.12.2015 invested in equity instruments and bonds, in addition to cash holdings. Bonds are issued by the Norwegian government, Norwegian municipalities, finance institutions, and corporations. Bonds in foreign currencies are currency hedged. Investments are in Norwegian and foreign shares.

Pensions in Sweden As of 31 December 2015 a total of 241 “tjänstemän” employed by Infratek’s Swedish subsidiary were members of the ITP (Industrins og handelns tilläggspension) defined benefit plan. All “tjänstemän” also have an ITPK defined contribution plan. “Tjänstemän” with a salary in excess of SEK 593 000 can select an alternative ITP in the chosen insurance company. 4 employees have, for historic reasons, an alternative ITP with higher benefits relating to retirement, family and incapacity pension. For “tjänstemän” in the Swedish company, Infratek has purchased insurance cover from Alecta which manages and administers the ITP pension insurance scheme. In addition, there is a special charge in accordance with the collective agreement for the additional pension EFA-Sif, "Sveriges Ingenjörer och Ledarna", corresponding to 1.0 percent of salary.

285 “Kollektivanställda” are covered by the Avtalepension SAF-LO, a defined contribution plan. In addition, there is a special charge relating to the collective agreement on supplementary pensions EIO-SEF, corresponding to 1.0 percent of salary. The defined contribution plan for “kollektivanställda” is administered by Fora.

In addition to the above sensitivities, the Group has estimated that a change from GAP2007 to K2013BE would increase the pension liability by NOK 41 million, with a net after-tax effect on equity of NOK 31 million as per 31.12.2015. Infratek has consistantly applied GAP2007 mortality estimates produced by Gabler and considers this to be the best estimate for mortality assumptions.

The estimates are based on facts and conditions as of 31 December 2015. Actual results could therefore deviate from these estimates to a material extent.

Pension assets are valued at fair value as of the year-end. Pension liabilities (net present value of pension payments earned per the balance sheet date, adjusted for future salary growth) are valued using best estimates based on assumptions as of the balance sheet date. The actuarial gain in 2015 is mainly due to an increased discount rate in 2015 compared to 2014. The actuarial estimates of pension liabilities have been prepared by independent actuaries. The assumptions regarding salary growth, increase in pension payments, and change in G are based on historic observations, established tariff agreements, and the relationship between certain assumptions.

The defined benefits scheme for Infratek’s employees in Sweden, acts as a defined contribution scheme for the Group, with annual premiums being charged as expenses as they accrue. The Group has no pension liability in the statement of financial position related to the pension scheme in Sweden. Employees who leave the company before retirement age receive a paid- up policy. The paid-up policies are managed by the company in which the employee has accrued pension rights. Infratek has no obligations after the employee has received a paid-up policy.

Pensions in Finland All companies in Finland are obliged to establish a mandatory service pension for their employees. All employees in Finland are covered by the mandatory service pension scheme, which is based on defined contributions. This scheme is insured through Varma Pension Insurance Company.

Before its acquisition by Infratek, 34 employees of the Finnish subsidiary previously had supplementary defined benefits pension plans with Fortum Pension Foundation. This defined benefits scheme provided a defined pension for these employees if the mandatory scheme did not cover this amount. When Infratek Finland Oy was acquired by Infratek this defined benefit agreement was replaced by a supplementary pension agreement with the insurance company Mandatum Life in Finland. This supplementary pension agreement will be funded through annual pension premiums to cover the employees’ accrued pension entitlements. The premiums will be paid by Infratek Finland Oy. The annual premium covers the expected costs associated with the supplementary pension scheme and no further obligations devolve to the company.

31 NOTE 18 TRANSACTIONS WITH RELATED PARTIES

The Infratek Group is 100 % owned by Heraldic Midco s.a.r.l. There have been no related party transactions with Heraldic Midco s.a.r.l. or with parties related to Heraldic Midco s.a.r.l. during 2014 and 2015, apart from interest payments in 2014 amounting to NOK 2 million related to a long-term debt from Heraldic Midco s.a.r.l. The debt was settled during 2014. During 2015, no interest cost has been recognized to related parties.

The Company has agreements with Triton Advisers Limited and Triton Managers III Limited for counseling and success fee related to acquisition of businesses, respectively. Expenses during 2015 were NOK 0.2 million (NOK 6.5 million during 2014).

For remuneration to the CEO and the Board of Directors, see Note 21 Remuneration to Board and Group.

N OTE 19 OTHER OPERATING EXPENSES

Specification of other operating expenses Amounts in million NOK 2015 2014 Maintenance (40) (51) Consulting services (41) (49) Rent, electricity, etc. (47) (55) Sales and marketing expenses (4) (4) Office expenses (11) (12) Transportation expenses (98) (96) Other operating expenses (68) (60) Total other operating expenses (308) (327)

Specification of fee to auditor Amounts in thousand NOK 2015 2014* Fee statutory audit 1 340 2 058 Fee assurance services 17 173 Fee tax advisory services 10 44 Fee other non-audit services - 667 Total auditor fee 1 367 2 942

*) During 2014 the Group has changed auditor from PwC to KPMG. The fees for 2014 have therefore incurred against both auditors.

N OTE 20 SALARIES AND OTHER PERSONNEL EXPENSES

Specification of personnel expenses

Amounts in million NOK 2015 2014 Salaries and other personnel expenses (673) (672) Social security contribution (146) (153) Pension expenses - defined benefit plans (49) (6) Pension expenses - contribution plans (30) (29) Other benefits (31) (31) Total salaries and other personnel expenses (929) (891)

Average number of man-years* 2015 2014 Norway 574 579 Sweden 572 641 Finland 105 120 Total 1 251 1 340

*) The parent company Infratek Group AS does not have any employees. The average number of man-years is based on average monthly amounts for the Group for the period 1 January to 31 December 2015 and 2014, respectively.

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MMemembebresr so fo Gf rGoruopu pm manaangaegmemenetn Mht aehvmaevb Mege errgosmru oobpufe plGrri fslrei ofo eiufnf piGsn umrsroruaurnpacan megc ecam oncvaoeegvnreta mrghaeaeg,vne ehtt, ehgaaerlovathuelt p hign lrrisinofueusr upainr nallsiicfnufecr aeiainn nascdune rdr aac nano ncvine it nr ecatroegevrese,t rsr-haftre-gefareeel,,t e chh a ecirna slrllott uhlaor n aaiin nnosc fuoe brfr a ebntewcdte wea eaennen idn taenr e iinsttt-efrresett -c-ffarrer elo caanrr ollof abne towff ebeenttween NONKO K4 0400,00,0000 0a nadn dN ONKO K5 0500,00,0000,0 wN, OwhiKhc ihc4N h0iOs 0 iKsw,0 wr40i0tr0ti0et at,,n0en 0nd0 o dN waoOnwKd nb 5 Nyb0 Oya0 K a,t0 e 5t0ne00tn0h,t ,, wh0o 0fho 0itfch ,,ht ewh ieohs riiowcigrhrii gi ntiisitane lwa nalr r mdiiattotmtoewunonu d tnb ootyw f o antfh ttbehy nel ota hlao t ntaoe nfen tatehcae hoc ofhfy r tetyihgaeeiran . o raI.rnrl i iIg anaimi ndaadodlilud t ainiotmtin oo onafu natnhntte o lffo ttahne elloaacnh eyaecahr. yIne aarrd.. dIInit iaodnd aiittniion an anannunaula cl acra sr usbusbidsiyd yis isp apiadi.d T. hTehseesa ebn enbnueeanafleni tcfnsiatu sara rsalle u rc ebian srricni dslcuuyldub iedssd ieidp diyan i i dinitsh. tpeTha heciied ocs.l.o ue Tlm uhbmensn nfeeo f frboi tefrsi nx faiexrdffeii ttd ssi na salcarrleluray d rii,ney ec,d tlle ucint,dc aet, hndaed nii ndct h o ttthelhu eeimn citnoe tllrfueeomrrse tfns ibtx f feobndrer e nffsifiexaitfel iaitdsr i ysd,a e dellcaetlrcary,lr a,,ea rednett dcfo ,,tf rhaoenr din tttheer e iinsttt ebrreensett fbite inse dffieitt c iilsa dreedc llfaorrred fforr tatxa xp uprupropsoesse.s I.n I na daddidtiiotino nb ebneenfeitfsitt-asinx-i -npk-uittknaridpxn o d sps uusecurrshpc. ohaIns sae asisnd ..it ndIeIntirte niaorednntde b(ititht ei(iohnmnoe mfbeit eeson- foiefniffcf-fiikiettcsi)ne-,-i i)dnm, --smkouibioncibdhlei l saepus hp ciohnn to aensr ea n ii neadttne (dnrrhn eonewmettws e((phs aopopfamfeipcerees ro )sa,ff frfmaieicr oeob) )fo,,fi elfmefre eoprdbeh.idiolle.n ep haonnde n aenwds pnaepwesrpsa apreerr so fafrerer e odff.fferred..

NOTE 22 FINANCIAL INCOME AND EXPENSES

Amounts in million NOK 2015 2014 Interest income 1 6 Financial income 1 6

Interest expenses towards parent company - (2) Interest expenses related to bond (46) (29) Other interest expenses (7) (28) Other financial expenses (5) (10) Financial expenses (57) (69) Net financial income (expenses) (57) (63)

33 N OTE 23 TAX EXPENSE

Amounts in million NOK 2015 2014 Tax payable (21) (6) Change in deferred tax (13) (26) Total tax expense (34) (32)

Tax payable in the statement of financial position as of 31 December Amounts in million NOK 2015 2014 Tax payable (21) (6) Prepaid tax 13 8 Tax (payable) / receivable in the statement of financial position (9) 2

Reconciliation effective tax rate Tax on the Group’s profit before tax and discontinued operations differs from the amount that would have resulted from application of the nominal taxation rate. Reconciliation of the nominal tax rate and the effective tax rate is shown below:

Amounts in million NOK 2015 2014

Profit (loss) before tax and discontinued operations 105 88

Expected tax expense, 27 % nominal tax rate (28) (24) Non-deductible income and expenses (0) 4 Variance from different tax rates in subsidiaries 5 3 Effect due to change in nominal tax rates* (2) - Tax effect relating to prior year - (1) Valuation allowance deferred tax losses (9) (14) Total tax expense (34) (32)

Effective tax rate 33% 36%

*) The statutory tax rate in Norway was reduced from 27 % til 25 % with effect from 1 January 2016.

NOTE 24 DISCONTINUED OPERATIONS

Discontinued operations in 2014 On 30 June 2014, the Group disposed of the business area Security – Technical Solutions. Operations are recognized as discontinued operations from the date of disposal, and comparable income and cash flow figures have been restated accordingly. Profit or loss from and gain on disposal of the business area are recognized on the line “Profit for the period from discontinued operations” in the consolidated income statement.

The tables below show profit or loss and net cash flow from discontinued operations for the year 2014 related to the business area Security - Technical Solutions.

Profit (loss) from discontinued operations Amounts in NOK million 2014 Operating revenues 122 Purchased materials (52) Salaries and other personnel expenses (46) Depreciation (1) Other operating expenses (22) Operating profit 1 Financial revenues and expenses - Profit (loss) before tax 1 Tax expense - Profit (loss) for the period 1 Gain on disposal of discontinued operations 34 Profit for the period from discontinued operations 35

Net cash flow from discontinued operations Amounts in NOK million 2014 Net cash flow from operating activities (5) Net cash flow from investing activities 10 Net cash flow from financing activities 20

Disposal of the business area Security - Technical Solutions On 30 June 2014, the Group disposed of the business area Security – Technical Solutions for a consideration of NOK 55.0 million. The tables below specify the calculation of gain on disposal in addition to the net cash flow impact from the transaction. 34

Carrying amount of assets and liabilities in Security - Technical Solutions as of 30 June 2014 Amounts in NOK million 2014 Non-current assets 7 Inventories 18 Accounts receivable and other receivables 65 Cash and cash equivalents 17 Pension and other liabilities (5) Long-term debt (26) Accounts payable and other liabilities (52) Carrying amount of disposed assets and liabilities 24 Total consideration 55 Accumulated exchange differences reclassified to profit or loss on disposal 3 Gain on disposal of Security - Technical Solutions 34

Net cash inflow on disposal of Security - Technical Solutions Amounts in NOK million 2014 Proceeds from disposal* - Cash and cash equvalents in Security - Technical Solutions (17) Net cash inflow on disposal of Security - Technical Solutions (17)

*) The disposal was settled as a non-cash transaction in connection with settlement of debt. NOTE 24 DISCONTINUED OPERATIONS

The tables below show profit or loss and net cash flow from discontinued operations for the year 2014 related to the business area Security - Technical Solutions.

*) The disposal was settled as a non-cash transaction in connection with settlement of debt.

NOTE 25 PROVISIONS

Spesification of provisions Amounts in NOK million 2015 2014 Accruals for building rent obligations 9 19 Total provisions 9 19

In 2009, the Group entered into a ten year lease for Breivollveien 31 (Oslo). As a result of sale of entities and other organisational changes, parts of these premises are neither in use nor sublet as per 31 December 2015. The vacant office space and related costs are assessed to fulfill the criteria of a loss making contract.

Infratek has since 2010 subleased the 3rd floor of the premises at Breivollveien 31 (Oslo). In 2015 Infratek succeeded to sublease further vacant office space on the 2nd floor to a third party. As the sublease contracts are signed at a price lower than the Group's overall leasing contract, the Group has made an accrual for loss-making sublease contracts. After the disposal of Security - Technical Solutions in 2014, the Group signed a sublease contract with Infratek Sikkerhet AS. This contract was added to the accrual in 2014.

The best estimate on the loss accrual related to the lease contract for Breivollveien 31 (Oslo) is NOK 14 million at the end of 2015 (NOK 25 million at the end of 2014), of which NOK 5 million (NOK 6 million) are classified as short-term, and the remaining NOK 9 million (NOK 19 million) are classified as a long-term liability.

NOTE 26 CONTINGENT LIABILITIES

Contingent liability regarding Norwegian employees Infratek Service AS, which was merged with Infratek Norge AS (former Infratek Entreprenør AS) in 2009, acquired 25 employees from Halden E-verk in 1992. These employees were transferred to KLP in 1992, but have earned pension rights in the Halden Kommunale Pensjonskasse. Since the acquisition, no demands concerning adjustment premiums or similar have been received from Halden Kommunale Pensjonskasse. On this basis, Infratek Norge AS does not consider itself to have any liabilities linked to Halden Kommunale Pensjonskasse.

Bank and group guarantees The Group purchases bank guarantees as security for certain liabilities. Per 31 December 2015, these bank guarantees amounted to NOK 177.8 million including NOK 25.5 million in tax deduction guarantees and NOK 152.3 million in project guarantees. Corresponding guarantees in 2014 were NOK 25.5 million and NOK 140.8 million, respectively.

Additionally, Group guarantees adding up to a total of NOK 94.3 million were made whereas the corresponding amount made last year was NOK 66.2 million. See Note 12 for information regarding guarantees related to the Group account system.

Contingent guarantee liabilities The Group has posted an accrual for guarantee commitments for NOK 8.6 million related to the Group's operations in Sweden. The accrual is calculated based on experience and best estimate.

35 Litigation A subcontractor of Infratek Group has during 2014 initiated legal actions against the Group. Potential damages are up to NOK 3.1 million if the case is lost. Infratek has assumed no responsibility and based on best estimate has not made any accruals for potential damages other than litigation cost of NOK 1.4 million as per 31 December 2015. On 31 March 2016, the court fully sustained Infratek's claim. NOTE 26 CONTINGENT LIABILITIES

Litigation A subcontractor of Infratek Group has during 2014 initiated legal actions against the Group. Potential damages are up to NOK 3.1 million if the case is lost. Infratek has assumed no responsibility and based on best estimate has not made any accruals for potential damages other than litigation cost of NOK 1.4 million as per 31 December 2015. On 31 March 2016, the court fully sustained Infratek's claim.

NOTE 27 SUBSEQUENT EVENTS

Infratek Finland Oy entered into an agreement on 7 January 2016 concerning the acquisition of 100 per cent of the shares in the Finnish distribution grids company Pohjolan Werkonrakennus Oy ("PWR"). The acquired company has approximately 150 employees and a turnover of EUR 18 million during its last financial year (04/2014 - 03/2015). The acquisition is strategically important as it gives Infratek access to the distribution grid market in Finland.

The sale and purchase agreement includes an earn-out consideration based on the aggregated EBIT of the company for the financial period of 1 January through 31 December 2016 and the financial period of 1 January 2017 through 31 December 2017. Minimum earn-out consideration is EUR 1.0 million. The earn-out consideration will in no event exceed EUR 3.0 million. On the basis of available information as the budget for 2016 and 2017, the maximum earn-out consideration will be reflected as part of the purchase price of the shares of PWR and as a contingent consideration liability. At the time of the acquisition, the earn-out consideration is estimated at EUR 3.0 million payable in 2017. The earn-out consideration will be re-measured at fair value at every balance sheet date, with any changes recognized in the income statement.

At the time the financial statements are authorized for issue, the initial accounting for the business combination is incomplete. The purchase analysis for the acquisition of Pohjolan Werkonrakennus Oy is started but due to insufficient information not finished.

Subsequent to the balance sheet date, no further events of special importance occurred that could have a material impact on the financial position and results of operations of the Group.

NOTE 28 COMPANIES INCLUDED IN THE CONSOLIDATION OF THE GROUP

Ownership/voting Company Registered business address Ownership/voting rights 2014 rights 2015 Infratek Group AS (parent company) Oslo, Norway na na Infratek AS Oslo, Norway 100% 100% Infratek Norge AS Oslo, Norway 100% 100% Infratek Sverige AB Stockholm, Sweden 100% 100% Infratek Finland OY Helsinki, Finland 100% 100% Infratek Elsikkerhet AS Oslo, Norway 100% 100%

36 Annual accounts Infratek Group AS Income Statement Infratek Group AS

1 JANUARY - 31 DECEMBER 1 JANUARY - 31 DECEMBER

Amounts in thousand NOK Amounts in thousand NOK Note 2015 Note 2014 2015 2014

Other operating expenses Other operating expenses 2 (1 207) 2 (2 528) (1 207) (2 528)

Operating profit (loss) Operating profit (loss) ( 1 207) (2 528) (1 207) (2 528)

Financial income Financial income 3 249 525 3 23 156 249 525 23 156 Financial expenses Financial expenses 3 (52 301) 3 (59 001) (52 301) (59 001)

Net financial income (expenseNse)t financial income (expenses) 19 7 224 (35 845) 197 224 (35 845)

Profit (loss) before tax Profit (loss) before tax 19 6 017 (38 374) 196 017 (38 374)

Tax expense Tax expense 4 - 4 - - -

Profit (loss) for the period Profit (loss) for the period 19 6 017 (38 374) 196 017 (38 374)

Allocation of profit (loss) Allocation of profit (loss) Proposed dividends Proposed dividends 8 (135 000) 8 - (135 000) - Transferred to Other equity Transferred to Other equity 8 (61 017) 8 38 374 (61 017) 38 374

Total allocation Total allocation (19 6 017) 38 374 (196 017) 38 374

38 Balance Sheet Infratek Group AS

31 DECEMBER

Amounts in thousand NOK Note 2015 2014

Assets Deferred tax assets 4 8 340 8 340 Investments in subsidiaries 5 882 930 882 930 Total non-current assets 891 270 891 270

Receivable group contribution 6 249 502 22 985 Cash and cash equivalents 1 130 2 977 Total current assets 250 632 25 962

Total assets 1 141 902 917 232

Equity and liabilities Share capital 8 34 34 Share premium 8 253 300 253 300 Total equity 253 334 253 334

Other equity 8 94 (60 923) Total retained earnings 94 (60 923)

Total equity 253 428 192 411

Bond 637 116 633 345 Other long-term liabilities 6,7 65 763 62 363 Total non-current liabilities 702 879 695 708

Short-term debt to Group companies 6,7 42 576 22 985 Dividend 7 135 000 - InfratekOthInfratek Reporter cur r2015Reportent lia b2015ilitiInfratekes Report 2015 7 8 019 6 128 27/04/1627/04/16 13:14 13:14 27/04/16 13:14 InfratekInfratek ReportInfratek 2015Report Report 2015 2015 27/04/1627/04/16 13:1427/04/16 13:14 13:14 Total current liabilities 185 595 29 113 significant significant variations variations in workloadsignificant in workload from variations quarter from quarter into workload quarter. to quarter. from quarter to quarter. significantsignificant significantvariations variations variationsin workload in workloadin fromworkload quarter from from quarter to quarterquarter. to quarter.to quarter. Total equity and liabilities 1 141 902 917 232 Infratek'sInfratek's Nordic Nordicmarket market positionInfratek's position and Nordic strong and market strongfinancial position financial position, and position, strongmakes makesfinancialInfratek Infratek wellposition, positioned well makes positioned Infratek well positioned toInfratek's meettoInfratek's the meetInfratek'sNordic challenges the Nordicmarket challenges Nordic facing market positionto marketmeet thefacing position andtheGroup position the challengesstrong andinGroup theand strongfinancial future. in strongfacing the financial position,future. financialthe Group position, makes position, in the makesInfratek future. makes Infratek well Infratek positioned well well positioned positioned to meetto the meetto challengesmeet the the challenges challenges facing thefacing facingGroup the the inGroup the Group future.in thein the future. future.

THE BOARDTHE BOARDOF DIRECTORS OF DIRECTORSTHE OF INFRATEKBOARD OF INFRATEK OF GROUP DIRECTORS GROUPAS OF AS INFRATEK GROUP ASOSLO, 25 OSLO, APRIL 25 2016 APRIL 2016 OSLO, 25 APRIL 2016 THEBOA BOARDRDTHE OTHE FBOARDOF D DIRECTORSBOARDIRE COFT ODIRECTORSOFR SDIRECTORS ,OF IN INFRATEKFR AOFT EINFRATEKOFK GROUPINFRATEKGROU GROUPPAS A GROUPS AS AS OSLO,O 25 SOSLO,L APRILO OSLO,, 2255 2016 APRILA25P APRILRIL 2016 2 0201616

Carl Jo ha n Falkenberg Petter Darin Carl Johan Renvall Carl JohanCarl Falkenberg Johan Falkenberg Carl Johan Falkenberg Petter Darin Petter Darin Petter Darin Carl Johan Carl Renvall Johan Renvall Carl Johan Renvall CarlBoa rJohand cCarlha CarlFalkenbergi rJohanma Johann Falkenberg Falkenberg Petter B Darin o Petter a r dPetter m Darin e m Darinb e r Carl Johan Carl B oCarlRenvall aJohanrd Johanm eRenvallm bRenvaller Board chairmanBoard chairman Board chairman Board member Board member Board member Board member Board member Board member Board chairmanBoardBoard chairman chairman Board member Board Board member member Board member Board Board member member

http://infratek2015.cust.limecms.no/en/aret-2015/styrets_arsberetninghttp://infratek2015.cust.limecms.no/en/aret-2015/styrets_arsberetninghttp://infratek2015.cust.limecms.no/en/aret-2015/styrets_arsberetning Page 6 Pageof 6 6 of 6 Page 6 of 6 http://infratek2015.cust.limecms.no/en/aret-2015/styrets_arsberetninghttp://infratek2015.cust.limecms.no/en/aret-2015/styrets_arsberetninghttp://infratek2015.cust.limecms.no/en/aret-2015/styrets_arsberetning Page 6 Pageof 6Page 6 of 6 6 of 6 Cash Flow Statement Infratek Group AS

1 JANUARY - 31 DECEMBER 1 JANUARY - 31 DECEMBER

Amounts in thousand NOK Amounts in thousand NOK Note 2015 2014Note 2015 2014 Cash flow from operating activities Cash flow from operating activities

Profit (loss) before tax Profit (loss) before tax 1 96 017 (38 374) 196 017 (38 374) Group contribution recognized as financiaGl irnocuopm ceontribution recognized as financial in come 3 (2 49 501) (22 985) 3 (249 501) (22 985) Changes in inter-group receivables/payabClehsanges in inter-group receivables/payables 19 591 22 985 19 591 22 985

Changes in other accruals Changes in other accruals 1 890 (11 706) 1 890 (11 706)

Net cash flow from operating activitieNset cash flow from operating activities (3 2 003) (50 080) (32 003) (50 080)

Cash flow from investing activities Cash flow from investing activities Investment in subsidiaries Investment in subsidiaries 5 - (235 608) 5 - (235 608)

Net cash flow from investing activitieNset cash flow from investing activities - (235 608) - (235 608)

Cash flow from financing activities Cash flow from financing activities Proceeds from issuing long-term debt Proceeds from issuing long-term debt - 234 000 - 234 000

Changes in long-term debt Changes in long-term debt 7 171 (629 934) 7 171 (629 934) Proceeds from issuing long term debt (BonPdro)ceeds from issuing long term debt (Bond) 7 - 631 400 7 - 631 400

Dividend received from subsidiaries Dividend received from subsidiaries 5 - 50 000 5 - 50 000 Group contribution received/paid Group contribution received/paid 4 22 985 - 4 22 985 -

Net cash flow from financing activitieNset cash flow from financing activities 30 156 285 466 30 156 285 466

Net change in cash and cash equivaleNnetts change in cash and cash equivalent s ( 1 847) (222) (1 847) (222)

Cash and cash equivalents as of 1 JanuaryCash and cash equivalents as of 1 January 2 977 3 199 2 977 3 199

Cash and cash equivalents as of 31 DCeaceshm abnedr cash equivalents as of 31 Dec ember 1 130 2 977 1 130 2 977

40 NOTE 1 ACCOUNTING PRINCIPLES

Infratek Group AS’s accounts have been prepared in accordance with Norwegian accounting law and generally accepted accounting principles in Norway (NGAAP).

Accrual, classification and valuation principles

Classification Classification of balance sheet items is defined as follows: All assets related to the business cycle, receivables payable within one year, and assets not intended for permanent ownership or use by the business, are classified as current assets. Other assets are classified as fixed assets. Liabilities with time to maturity exceeding one year after expiration of the accounting year are entered as long-term liabilities. Other liabilities are classified as current liabilities.

Valuation principles General Fixed assets are recognized at cost and written down to fair value when an impairment exists and is not expected to be temporary. Fixed assets with limited useful life are depreciated according to a resonable depreciation plan. Current assets are valued at the lower of cost and fair value. Long-term and short-term liabilities are recorded initially at fair value, net of transaction costs. Subsequently, long-term debt is carried at amortised cost.

Revenues Revenue is recognized when it is earned, that is, when demand for compensation arises. This occurs when services are provided, along with the work performed. Revenues are accounted for by the value at the transaction date.

Assets and liabilities denominated in foreign currencies Monetary items denominated in foreign currencies are translated at balance sheet date.

Cash and cash equivalents Cash and cash equivalents for the company consists of cash deposits.

Investments in subsidiaries Investments in subsidiaries are valued according to the cost method. Dividends received and other profit disbursements from companies are recognized as financial income if the profit disbursement is retained after Infratek Group AS bought the shares, if not, then profit disbursement is recognized in deduction of costs of subsidiary shares.

Tax expense, deferred tax and deferred tax asset Tax charges are based on ordinary pre-tax profit. Tax expenses in the profit and loss account consist of taxes payable for the period and any change in deferred taxes/deferred tax benefits. Taxes payable are based on taxable profit for the year. Deferred tax recognized in the balance sheet is calculated using the offset method, with full provision for net tax-increasing temporary differences based on the tax rate on the balance sheet date and nominal sizes. Deferred tax benefits recorded in the balance sheet relating to net tax-reducing temporary differences and carry-forward losses are based on the likelihood of sufficient future earnings or ability to benefit from tax positions that can be offset through group contributions.

Cash flow statement principles The cash flow statement has been prepared using the indirect method of accounting. The method entails analysis being based on the unit’s profit for the year to be able to present cash flows added from ordinary operations, investment activities and financing activities.

41 NOTE 2 N OPTEER S2ONEPLELR SAONNDE OLTLH AENRD O OPTEHREART IONPGE ERXAPTEINNGS EESXPENSES

The compTahney choamd pnaon ey mhapdlo yneoe esm inp l2o0y1e5e sa innd 2 i0s 1th5e arnedfo irse tnhoetr elifaobrele ntot h liaavbele a t poe hnasvioen a s pcehnesmioen. scheme.

Infratek GInrofruapt eAkS G hraosu npo At Sp ahiads annoyt rpeamidu anneyra rteiomnu tnoe trhaeti oBno atord t hdeu rBinoga r2d0 d1u5r ianngd 2 2001154 a. nd 2014.

SpecificaStpioenc iofifc atuidoint oorf’ sa ufedeitsor’s fees

Fees to PwFeCe iss tcoo PmwpCri sise dco ams pforilsloewd inasg :following:

AmountsA imn otuhnotuss ainn dth NoOusKand NOK 2015 2015 2014 20 14 Fee statutFoerey satuadtuittory audit - - 286 2 86 Fee assurFaenec ea ssseurvraicnecse services - - 124 1 24 Fee tax adFevies otaryx saedrvviiscoersy services - - - - Fee otherF neoen o-athuedri tn soenr-vaicuedsit services - - 18 18 Total audTiottoarl faeueditor fee - - 428 4 28

Fees to KPFMeeGs cto mKPpMrisGe ctohme pforlilsoew tihneg :following:

AmountsA imn otuhnotuss ainn dth NoOusKand NOK 2015 2015 2014 20 14 Fee statutFoerey satuadtuittory audit 213 213 73 73 Fee assurFaenec ea ssseurvraicnecse services - - 48 48 Fee tax adFevies otaryx saedrvviiscoersy services - - - - Fee otherF neoen o-athuedri tn soenr-vaicuedsit services - - 70 70 Total audTiottoarl faeueditor fee 213 213 191 1 91

Stated amSotautnetds admo nouotn tins cdluod neo Vt AinTc.lude VAT.

N OTE 3 FINANCIAL INCOME/EXPENSES

Financial income 2015 2014

Interest income 23 110 Group contribution from Infratek AS 245 501 22 985 Other financial income - 61 Total financial income 245 524 23 156

Financial expenses 2015 2014

Interest expenses to parent company - (2 087) Interest expenses bond (45 940) (29 430) Other interest expenses (6 323) (27 375) Other financial expenses (38) (109) Total financial expenses (52 301) (59 001)

NOTE 4 TAX EXPENSE

Amounts in thousand NOK 2015 2014 Profit (loss) before tax 196 017 (38 374) Permanent differences (249 501) (22 985) Effect of taxable group contribution 19 501 10 580 Change in temporary differences 3 771 (16 655) Tax basis before application of loss carryforward (30 212) (67 434) Applied tax loss carryforward - - Basis for tax payable (30 212) (67 434)

Specification of tax expense for the year: Tax payable - - Change in deferred tax asset (recognized) - - Ordinary tax expense - - Taxation rate, 31 December 27% 27%

Amounts in thousand NOK 2015 2014 Deferred tax/deferred tax benefit: Amortization bond 12 884 16 655 42 Temporary differences that affect tax payable: Tax loss carryforward (111 958) (81 746) Interest deduction carryforward (16 576) (16 576) Valuation allowance 82 290 50 778 Basis, deferred tax/(deferred tax benefit) (33 360) (30 889) Deferred tax/(deferred tax benefit) (8 340) (8 340)

Reconciliation of effective tax rate: Amounts in thousand NOK 2015 2014 Profit (loss) before tax 192 017 (38 374) Permanent differences (245 501) (22 985) Basis for tax expense (53 484) (61 359) Expected tax expense, 27% nominal taxation rate 14 441 16 567 Effect of taxable group contribution (5 265) (2 857) Effect of valuation allowance (8 508) (13 710) Effect of change in tax rate (667) - Tax expense 0 0

Effective tax rate 0,0 % 0,0 % NOTE 4 TAX EXPENSE

Specification of tax expense for the year: Tax payable - - Change in deferred tax asset (recognized) - - Ordinary tax expense - - Taxation rate, 31 December 27% 27%

Amounts in thousand NOK 2015 2014 Deferred tax/deferred tax benefit: Amortization bond 12 884 16 655 Temporary differences that affect tax payable: Tax loss carryforward (111 958) (81 746) Interest deduction carryforward (16 576) (16 576) Valuation allowance 82 290 50 778 Basis, deferred tax/(deferred tax benefit) (33 360) (30 889) Deferred tax/(deferred tax benefit) (8 340) (8 340)

Effective tax rate 0,0 % 0,0 %

NOTE 5 INVESTMENTS IN SUBSIDIARIES

Business Book Balance sheet Profit for the Ownership voting adress value equity year rights Amounts in thousand

NOK Infratek AS Oslo 882 930 460 783 317 491 100% Totalt 882 930 460 783 317 491

N OTE 6 RELATED PARTIES

Receivables and liabilities with related parties

Amounts in thousand NOK 2015 2014 Receivables Receivable group contribution Infratek AS 249 501 22 985 Total receivables related parties 249 501 22 985

Amounts in thousand NOK 2015 2014 Liabilities Long-term liabilities to parent company - - Short-term labilities towards Infratek AS 42 576 22 985 Total liabilities related parties 42 576 22 985

Transactions with related parties Infratek Group AS is 100% owned by Heraldic Midco s.a.r.l. There have been no related party transactions with Heraldic Midco s.a.r.l. or with parties related to Heraldic Midco s.a.r.l. in 2015. During 2014, NOK 2 million has been recognized as interest cost regarding debt to Heraldic Midco s.a.r.l which was converted to equity during 2014.

43 NOTE 7 LIABILITIES

Amounts in thousand NOK 2015 2014 Long-term liabilities Bond 637 116 633 345 Other long-term debt 65 763 62 363 Total long-term liabilities 702 879 695 708

In May 2014, Infratek Group AS issued a bond of NOK 650 million, with the duration of 5 years and coupon of 3 months’ NIBOR + 5 percent. Initial transaction fees of NOK 18.4 million related to the bond issue have been recognised as part of the carrying amount in the balance sheet. The bond is carried at amortized cost in the balance sheet. The bond was listed on the Oslo Stock Exchange on 17 December 2014.

Investors have a share pledge in the companys investment in Infratek AS.

The bond agreement has restriction related to distribution of funds from the group. The agreement requires an incurrence test to be performed pro forma imediately after a distribution of funds. The incurrence test requires that the leverage reatio (net interest bearing debt excluding debt to Triton Funds* to EBITDA < 3.0x) and interest coverage ratio (EBITDA to interest costs > 3.0x). No covenants apply to the bond agreement.

Other long-term debt has maturity date in 2034 (2014: 2034) and interest rate of 10 percent.

Amounts in thousand NOK 2015 2014 Short-term liabilities Short-term labilities towards Infratek AS 42 576 22 985 Proposed Dividends 135 000 - Accrued interest bond 4 553 4 960 Other short-term liabilities 3 466 1 168 Total short-term liabilities 185 595 29 113

NOTE 8 EQUITY

Specification of equity

Share Share premium Other paid-in Uncovered Total Amounts in capital account equity loss equity thousand NOK Equity as of 1 January 2015 34 253 300 - (60 923) 192 411

Conversion of debt to equity - - - - - Profit for the year - - - 196 017 196 017 Proposed Dividends - - - (135 000) (135 000) Equity as of 31 December 34 253 300 - 94 253 428 2015

Shareholders equity per 31. December 2015 is NOK 1.100 per share for 31 shares, in total NOK 34.100. The company only has one class of shares. All shares are owned by Heraldic Midco s.a.r.l.

N OTE 9 D NEOCTLEA 9RATDIOENCLARATION Infratek Report 2015 Infratek Report 2015 Infratek Report 2015 27/04/16 13:14 27/04/16 13:14 27/04/16 13:14 Infratek Report 2015Infratek Report 2015Infratek Report 2015 27/04/16 13:14 27/04/16 13:14 27/04/16 13:14 The Board oTf hDei rBeocatordrs o hf eDreirbeyc tdoersc lhaereres btyh adte tcola trhees btheast otof tthei rb kensto wofl etdhgeeir, ktnhoew alcecdoguen, ttsh ceo avcecroinugn tsh ec opveerrioindg 1 t hJaen puearriyo dth 1r oJaunguhary through 31 Decembsignificante3r1 2D0e1c5e, min bvariationscelur d2i0n1g5 n, oi ntinecs luworkload tdoi nthge n aocte cfromsignificantso uton tt shquarter, eh avc ecvariationso b utoenet nsquarter., phraev pinea rbworkloadeede nasignificantn pdr eppr aefromrseedn t avariationsequarterndd i np raecs cetoon rin tdquarter.ea dworkloadn icne awcictohr cdfromuarnrceen quartertw aitchc ocun rtortein nquarter.gt accounting standards .significant sItt afunrdtahredrs d .variationse Ict lfaurretshsignificant ethr adinte tcworkloadhlaer ien svariationsf otrhma tafrom thioensignificant i niquarterinnf o tworkloadrhme aatn ioton variationsnu aquarter.in lfrom rtehpeo arquartertn ninfou raworkload 2l 0re 1top5o pquarter.rtr of ovfromrid 2e0s1 quartera5 tpruroev aid ntoeds f quarter.a irtr vuiee wan odf ftahier vGireowu po’fs the Group’s assets, liabInfratek'sialistiseest,s f,i nlia nbNordicciliatile pso, marketsfiintiaonnc, ia positionnl pdo psriotifoitn andInfratek's,a sa na dstrong w phrolfe itNordic. financialaTsh ea Bw marketohao rlposition,de .a Tlsh opositione dBInfratek'seo cmakesalardre aandsl st ohInfratek aNordicstrongdte tcola trhe e marketfinancialswell btheas tpositioned ot ofposition ttposition,hei rb kens toand wo makesfl et dstronghgeeir, ktInfrateknh oefinancialwledg welle, tposition,h epositioned makes Infratek well positioned annual repoInfratek'sartn npuroavl irdee pNordicso art tpruroe marketv Infratek'saidneds f a irtpositionr ou veNordice arvnide wandfa marketiorf Infratek's ostrongpvreorfvi tpositioni,e kwfinanciale y oNordic fe pvr eoandnfit t sposition,,market ikstrongne yth ev ae position financialcnmakesctos uin tti hn Infratekandeg position, apce cstrongriooud n wellat inmakes dfinancialg positionedtpheerii roInfratek idn faposition,lunedn tch ewelle ior n imakesn tpositionedfhluee annc nInfratekeu oanl the wellannu positionedal to meet the challenges facing the toGroup meet in the the challenges future. facingto themeet Group the challenges in the future. facing the Group in the future. accounts, thtoaec meetccoumnpt sathe,n tyh ’echallengess pcomsitotpioa meetn,y a’facingsn pd theo tshiet ichallengesthe omno, saGrouptn idmto tph meeto e inrfacing tma theno tsthe tr i future.isthemk challengessp o aGrouprntadn utn r ciinsek r facingstthea ain tdfuture.ie usthen fcae cGroupritnagi ntthie ins c fotheamcipn afuture.gn tyh ea ncdo mthpea Gnyro aunpd. the Group.

BOARD OFTHEB DOIRA BOARDERCDT OFR OFSD,I RDIRECTORSINEFCRTAOTRESK, IOFGNRF INFRATEKORUAPT THEEAKS G BOARD RGROUPOUP OFA ASS DIRECTORS OFTHE INFRATEK BOARD OSLO, OFGROUP DIRECTORS 25 AS APRIL 2016OF OINFRATEKSLO, 25 GROUPAOPSRL IOSLO,OL ,AS2 2051 256AP APRILRIL 2 0201616 OSLO, 25 APRIL 2016 THE BOARD OF DIRECTORSTHE BOARD OF INFRATEKOF DIRECTORSTHE GROUP BOARD OF AS INFRATEK OF DIRECTORS GROUP OF AS INFRATEK OSLO, GROUP 25 APRIL AS 2016 OSLO, 25 APRIL 2016 OSLO, 25 APRIL 2016 ______

Carl Johan CFaarllk Jeonhbaenr gFalkenberg P ett er Dar Pinetter D ar in C arl Jo h a n CRaernl vJ oahllan Renvall

Chairman CarlCha iJohanrman Falkenberg Carl PetterJohan DarinFalkenberg B o a r d Carl M e Johanm bB e o r a PetterCarlFalkenbergrd M Johane mDarin be rRenvall B o a r d M e m bB eo r aPetterrd M e mDarinCarlbe rJohan Renvall Carl Johan Renvall Carl Johan FalkenbergCarl Johan Falkenberg CarlPetter Johan Darin Falkenberg Petter Darin Carl Petter Johan Darin Renvall Carl Johan Renvall Carl Johan Renvall Board chairman Board Board chairman member Board chairman BoardBoard membermember Board member Board member Board member Board chairman Board chairman Board Board chairman member Board member Board Board member member Board member Board member

Telephone +47 04063 P.O. Box 7000 Majorstuen Fax +47 22 60 96 01 Sørkedalsveien 6 Internet www.kpmg.no N-‐0306 Oslo Enterprise 935 174 627 MVA

To the Annual Shareholders’ Meeting of Infratek Group AS

Report INDEPENDENT on the AUDITOR’S Financial REPORT Statements

We have audited the accompanying financial Infratek statements of Group AS, which comprise the financial statements of the parent Infratek company Group AS and the consolidated financial statements of Infratek Group AS and its subsidiaries. The parent company’s financial statements comprise the balance sheet as at 31 December 2015 , the income statement and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information. The consolidated financial statements comprise the balance sheet 31 as at December 2015, and the statement of comprehensive income, statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory The Board information. of Directors lity Responsibi for the Financial Statements

The Board of Directors are responsible for the preparation and fair presentation of the parent company financial statements in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway and for the consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the EU, and for such internal control as the Board of Directors determine is necessary to enable the preparation of financial Auditor’s statements Responsibility that are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend s on the auditor’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we sufficient have obtained is and appropriate to provide a basis for our audit opinion. Offices in:

Oslo Grimstad Molde Trondheim Alta Hamar Narvik Tynset Arendal Haugesund Sandnessjøen Tønsberg KPMG AS, a Norwegian limited liability company and member firm of the KPMG network of independent member Bergen Knarvik Stavanger Ålesund firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Bodø Kristiansand Stord Elverum Larvik Straume Statsautoriserte revisorer -‐ medlemmer av Den norske Revisorforening Finnsnes Mo i Rana Tromsø

45 Independent auditor's report 2015 Infratek Group AS

Opinion on the separate financial statements

In our opinion, the parent company’s financial are statements prepared in accordance with the law and regulations give and a true and ew fair vi of the financial position Infratek of Group AS as at 31 December 2015 , and of its financial performance and its cash flows for the year then ended in accordance with Norwegian the Accounting Act accounting and standards and practices generally accepted Opinion in on Norway the . consolidated financial statements

In our opinion, the consolidated financial statements are prepared in accordance with the law and regulations and give a true and fair view of the financial position Infratek of Group AS and its subsidiaries as at 31 December 2015 , and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the EU.

Report on Other Legal and Regulatory Requirements Opinion on the Board of Directors’ report and the statements on Corporate Governance and Corporate Social Responsibility

Based on our audit of the financial statements as described above, it is our opinion that the information presented in the Directors Board of ’ report and in the statements on Corporate Governance concerning the financial statements, the going concern assumption and the proposal for the allocation of the profit is consistent with the financial statements and complies with the law Opinion and regulations. on Accounting Registration and Documentation

Based on our audit of the financial statements as described above, and control procedures we have considered necessary in accordance with the International Standard on Assurance Engagements (ISAE) 3000, «Assurance Engagements Other than Audits or Reviews of Historical Financial Information», it is our opinion that the management has fulfilled its duty to produce a proper and clearly set out registration and documentation of the company’s accounting information in accordance with the law and bookkeeping standards and practices generally accepted in Norway.

Oslo, 25 April 2016 KPMG AS

State Authorized Public Accountant Svein Wiig

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