Annual Report | 2018

5 326 Turnover (NOK, millions) Contents 6 000

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2 000 A word from the CEO...... 4 1 000

2014 2015 2016 2017 2018 This is Norconsult Our business ...... 7 Corporate governance ...... 10 402 Strategy 2019–2021 ...... 12 Operating proﬁt (NOK, millions) Heads for tomorrow #headsforrecruitment ...... 16 400 #headsforcareer...... 18 #headsforsustainability...... 21 300 #headsforresponsibility ...... 22 #headsforenvironment ...... 25 200

The little big differences 100 Selected projects 2018...... 28 Our market areas...... 38 2014 2015 2016 2017 2018

Board of Directors’ Report for 2018...... 46

Consolidated financial statements...... 62 3 800 Forretningsidé Employees

2018 3 800 2017 3 200 2016 3 050 2015 2 970 2014 2 900

Front page photos Photo 1: Havøygavlen Wind Power Plant . Photo 2: City Bridge in Flekkefjord . Photo: Southern Region of the Norwegian Public Roads Administration 2 Photo 3: Norconsult’s employees working at the VEAS facility . Photo: Johnny Syversen 3 A word from the CEO | This is Norconsult | Strategy 2019–2021 | Heads for tomorrow | Selected projects 2018 | Our market areas | Board of Directors’ Report for 2018 | Consolidated financial statements

As “Norconsultants”, everything we do must contribute to little big differences A word from the CEO that create added value for our clients.

Photo: Erik Burås

2018 was a hectic and good year for the acquisition of Arkitekthuset joint Ringerike Railway Line and E16 In addition, we have been selected as main topics for the 2019–2021 strategy must sharpen our ability to be in the Norconsult . We have engaged in the Monarken AB in Sweden, and the Danish motorway project, the InterCity consultants, architects and IT consul- period . We must become even better at forefront of development . We believe largest and most future-oriented architecture and consultancy company Drammen to Kobbervikdalen railway tants for the construction of a number collaborating effectively along the that focusing on having the most infrastructure projects in Norway and KAAI – Kærsgaard & Andersen A/S, project, and the E18 motorway of new schools, hospitals and power entire value chain when creating capable managers and working internationally, ranging from airports, Norconsult has now positioned itself as between Tvedestrand and Arendal . plants in Norway and abroad . solutions for large, complex and socially consistently with leadership schools and hospitals to transport one of the largest and leading players in Several new and exciting projects are in important projects . development, is the key to success in solutions . In addition, we welcomed the Scandinavia’s architectural sector . an early phase . For example, Norconsult Client value as our strategy achieving employee satisfaction and 200 new architects, in completing our These acquisitions open up new is part of the team that will be working The headline for our next strategy period In addition, we shall be an even more further growth . Management and largest acquisition ever, Nordic – Office opportunities for collaboration and on the new Bodø Airport . We are also is client value . For us, client value is first prominent driving force for the employee development is therefore also of Architecture . We have significantly enable the company to successfully working with AF Gruppen on an EPC and foremost understanding the client, development of creative, sustainable of key importance during the strategy strengthened our competitiveness undertake increasingly complex and contract for the development of the cultivating a close arelationship based on solutions for our clients . We have a period . throughout the 2016–2018 strategy socially important projects . Norconsult E39 motorway between Kristiansand trust, communicating openly and clearly clear ambition to help our clients period . Embarking on the 2019–2021 also acquired the IT development West and Mandal East . In addition, and ensuring that our clients receive reduce their greenhouse gas emissions We aim to be the most attractive strategy period, we are ready to create company Fundator AS during the year . Nordic is part of a group that is what they need . As “Norconsultants”, and energy consumption further in company to work for, and we aim to even more value for our clients, owners This is an exciting specialist group, which designing the new government building everything we do must contribute to the major projects . We are taking an have the most satisfied clients and and the society around us . provides the Group with new expertise complex in Oslo . little big differences that create added increasingly stronger position in employees . in areas such as systems development, value for our clients . If we succeed in digitalisation by offering fully digital Our goal of profitable growth and machine learning, IT architecture and IT In Sweden we started the preparation of this, we will also succeed in creating solutions . Thank you for a successful 2018 . revenues of NOK 5 billion by the end of consulting . a general plan for the City of profitable growth and a fulfilling We are looking forward to meeting new the 2016–2018 strategy period was Gothenburg, as well as the preparation workplace for our employees . Expertise as a competitive advantage challenges – both sustainable and achieved with a solid margin . Enhancing the world around us of geotechnical surveys for the At Norconsult, we have a solid corporate digital – together in the years to come . Norconsult has been through a Each year we are engaged in more than construction of a dual track railway line Globalisation, urbanisation and culture founded on our common tremendous growth phase . We have 20,000 projects, both large and small . between Kiruna and the Norwegian digitalisation are challenging us to find cultural platform LiVE, which consists of acquired 17 companies over the last The competition is fierce, but we are border on the oldest railway of its kind, completely new solutions for comp ten principles for management, ethics three years . In 2018, we welcomed nevertheless seeing a high level of known as the Iron Ore Line . leting our projects . Of the major trends and values . In addition, we introduced close to 800 new employees to the activity in all of our market areas, both we are seeing in the market, collabo LiVE PRO in 2018 . LiVE describes our Per Kristian Jacobsen company . in Norway and abroad . In 2018, Norconsult in Denmark began ration, digitalisation and sustainability culture, while LiVE PRO characterises CEO the engineering design for Scandinavia’s stand out as the most important how we work . Simultaneously, we have Solid acquisitions Norconsult has worked on several largest airport hotel, Comfort Hotel at development trends affecting our ability a vision of being the consultant that can In 2018, we acquired Nordic – Office of exciting projects in 2018 . Among these Kastrup . to create client value . Collaboration, solve the most challenging projects for Architecture . With a shareholding in are the urban development and design sustainability and digitalisation have our clients at any given time . As the Nordic of over 90 per cent, as well as engineering of Bispevika in Oslo, the therefore been defined as the three world is changing increasingly faster, we

Our business

Hammerfest

Vadsø Lakselv Kirkenes Alta Tromsø

Harstad Narvik

Bodø Fauske

Mo i Rana Mosjøen Norconsult is Norway’s largest, and one of the Nordic region’s leading, Luleå Kópavogur interdisciplinary consultancy firms for social planning, engineering design and Piteå Namsos architecture. With our 3,800 employees, we are engaged in more than 20,000 Steinkjer Skellefteå projects, both large and small. We are a driving force for sustainable and creative Kristiansund Verdal Levanger solutions when developing tomorrow’s society. Fully digital deliveries are our Molde Stjørdal Umeå Trondheim preferred choice. Ulsteinvik Ålesund Östersund Örnsköldsvik Os Førde Sogndal Sundsvall Årdal Otta With 96 offices, our business activities The combination of a local presence We offer consultancy services for Voss Hudiksvall span the world, and we have a particu- and our broad geographic and interna- projects in the areas of buildings, Bergen Eidfjord Lillehammer Odda Gjøvik Hamar larly strong Nordic footprint . We have a tional expertise create added value for transport, energy, industry, water and Oslo Haugesund Hønefoss Jessheim Sauda Borlänge leading position in Norway, and we our clients . We have a culture of close sewage, oil and gas, the environment, Lillestrøm Hjelmeland Sand Sandvika Älvkarleby Drammen Ski have gradually built ourselves up to collaboration across organisational and planning, architecture, risk manage- Kongsberg Ludvika Stavanger Askim Seljord Horten Karlstad Uppsala Espoo become a significant challenger in the geographic boundaries, which allows ment and IT . Our clients are public and Porsgrunn Fredrikstad Kristinehamn Tønsberg Västerås Swedish and Danish markets . We also us to balance our capacity utilisation private clients in Norway and abroad . Larvik Örebro Stockholm Kristiansand have international activities outside the and ensures market-leading expertise to Norconsult’s services encompass Nordic region, particularly in the energy carry out projects of variable content planning and consultancy services for Kungälv sector . and size, regardless of the geography . all phases of a project . Göteborg

Varberg Ålborg Växjö Halmstad Viborg Århus Helsingborg Filippinene Kalundborg København Lund Malmö Thailand Malaysia Botswana Zambia Polen New Zealand Sør-Afrika Mosambik

TheNor consultsGroup’s head hoved officekontor is liggerlocated i Sandvikain Sandvika, utenfor outside Oslo. Oslo . OverviewOversikt per as 31.12.2018 of 1 May 2019

Bispevika is the next part of Bjørvika that Oslo S Utvikling (OSU) will transform into a pulsating urban space with apartments and restaurants . 6 Norconsult is acting as consulting engineer . Ill .: Oslo S Utvikling AS 7 A word from the CEO | This is Norconsult | Strategy 2019–2021 | Heads for tomorrow | Selected projects 2018 | Our market areas | Board of Directors’ Report for 2018 | Consolidated financial statements

Business concept Vision Mission

Norconsult ensures the quality of clients’ We create solutions for the We use our know-how to infrastructure and building projects by providing most challenging projects . enhance the world around us . value-enhancing consulting expertise .

Norconsult Group Management 2019. From the left: Per Kristian Jacobsen (CEO), Janicke P. Garmann (EVP Norway/Regions), Christian B. Nilsen, EVP Finance/CFO, Fride A. Hærem (EVP Staff Functions), Egil Gossé (EVP Nordic) and Bård S. Hernes (EVP Norway/Head Office). Photo: Johnny Syversen

Nordic growth consultancy firm KAAI – Kærsgaard & Sivilingeniør Anders Overrein, stakeholders, through NORMS . NORMS choices and solve problems in their Management: In 2018, Norconsult acquired a total of Andersen A/S in 2018 . This acquisition Tind & Tyri arkitekter and Arkitektene was certified in 2018 in accordance daily work . Assume and delegate eight companies . Nordic – Office of strengthens our expertise and capacity Berg og Østvang . with ISO 9001:2015, quality manage- RESPONSIBILITY Architecture was our largest acquisition . in social residential construction and ment systems . LiVE characterises everything we do, Show COURAGE With a shareholding of over 90 per cent public construction projects . ISO certified in 2018 from how we collaborate with our Be VISIBLE and EXPLICIT in Nordic, we have positioned ourselves Norconsult creates client value and Strong corporate culture colleagues to client dialogue and how SEE your employees as one of the large, leading actors in We also acquired the IT company achieves good results by maintaining Our cultural platform LiVE represents we conduct our business in an ethical LIVE your values architecture in the Nordic region . This Fundator, which represents Norway’s quality in everything we do, in a safe and ten group-wide corporate principles for and profitable manner . Our corporate acquisition opens up new opportunities strongest and most exciting specialist sustainable manner . Our management management, values and ethics . LiVE culture is diverse, sharing and based on Values: for collaboration in several segments of group in systems development, system, NORMS, describes processes consists of five principles for good mutual respect . Fair the value chain . We have also strength- machine learning, IT architecture and IT and procedures that allow us to work in management, four values and a rule of Inclusive ened our position in Sweden in consulting . With the acquisition of a smarter way, achieve compliance and thumb for ethics, which contribute to Competent architecture and buildings through the Fundator, we have succeeded in build a culture of quality . promoting the attitudes by which we Enthusiastic acquisition of Arkitekthuset Monarken, establishing Norconsult as one of the would like our corporate culture to be which made us one of the ten largest leading suppliers of software and We ensure comprehensive manage- characterised . LiVE shall be present in Ethics: architectural firms in Sweden . In consultancy services in the area of IT . ment in relation to the authorities and everything we do and help all the Everything we do must bear addition, we acquired the Danish In addition, we acquired the companies clients, as well as external and internal Group’s employees to make the right public scrutiny .

1929 1956 1980 1994 1999 2004 2008 2011 2014 2018

►► Ing. A.B. ►► Norconsultants ►► Norconsult ►► NorCiv Engineering ►► Norconsult Informa ►► Technogarden ►► Quality Assurance ►► Norconsult Iyanda (Pty) ►► Solem Arkitektur AS ►► Fundator AS

Berdal Mozambique Lda. Co. Ltd sjonssystemer Engineering Service ►► Myklebust AS ►► Nordic – Office of Architecture AS

►► Tron Horn AS AS (NoIS) Resources AB ►► Norconsult ►► Geovest - Haugland AS ►► Arkitekthuset Monarken AB

►► Norconsult Laos ►► Byggcon AS Danmark A/S ►► KAAI - Kærsgaard A/S

Co. Ltd ►► Norconsult ►► Vestnorsk Andina SA, Chile 1939 1964 1989 1997 Plangruppe AS 2007 2010 2012 2016

►► Sivilingeniør ►► Norconsult AS ►► Berdal Strømme AS ►► Norconsult ►► GF Konsult ►► Norconsult ►► NorPower Sdn Bhd, ►► Norconsult Elliot Strømme AS (Merger) International AS AB, Gøteborg Peru SAC Malaysia New Zealand Ltd

changed its ►► Techno name to Consult Møre Norconsult AB

1998 2003 2005 2009 2013 2017

►► Berdal Strømme AS ►► Techno Consult AS ►► Garmann & Co ►► SAL CDS, Mosambik ►► RG-prosjekt ►► Leiv Nes Arkitekter AS The timeline shows the most important start-ups and acquisitions that have helped make changed its name to ►► Technogarden ►► Urheim AS Norconsult Africa ►► Wessberg A/S ►► Ara Engineering EHF Norconsult what it is today. Norconsult AS Engineering (Pty) Ltd ►► Astando AB ►► Glantz Arkitektstudio AB ►► Norconsult Management Resources AS (TG) ►► Mecad AB ►► Skovhus Arkitekter 8 Services Phil. Inc. 9 A word from the CEO | This is Norconsult | Strategy 2019–2021 | Heads for tomorrow | Selected projects 2018 | Our market areas | Board of Directors’ Report for 2018 | Consolidated financial statements

Corporate governance

Norconsult’s objective is to provide engineering consultancy services, to buy and Election Board, employee-elected Chief Executive Officer sell real estate, to engage in research and development, and to be involved in other board members The General Manager of Norconsult companies through share ownership or otherwise. The company’s activities help to The Election Board for Norconsult Holding AS is the Chief Executive create a more sustainable society through innovative and solution-oriented Holding AS administers the election of Officer . The Group’s Board of Directors consultancy services. three employee-elected board mem- appoints the CEO . A separate job bers every other year, in accordance description adopted by the Board of with the Norwegian Limited Liability Directors establishes the general terms Companies Act and the Representation for the CEO . Corporate governance not serve on the Board of Directors . In Regulations . The Election Board Norconsult is wholly owned by its accordance with the Norwegian consists of four members . Group Management team and employees . Co-ownership influences Limited Liability Companies Act, the corporate roles our corporate culture and can be seen CEO is responsible for day-to-day Group’s Board of Directors The CEO determines which corporate in the effort and drive that our clients management of the Group, and follows The Board of Directors of Norconsult roles will be represented on the Group experience . In addition, we are an guidelines and instructions issued by Holding AS is the Board of Directors for Management team . The Group independent consultant when impartial- the Board . the Group . The Group’s Board shall Management team is collectively ity in dealings with public and private comply with the requirements of the responsible for safeguarding clients is essential . At the end of 2018, General Meeting Norwegian Limited Liability Companies Norconsult’s interests and ensuring that around 2,650 employees owned shares The owners exercise the highest Act regarding the management of the CEO has the best possible basis for in Norconsult . authority in the Group through the assets in Group companies on behalf of preparing a strategy, making decisions General Meeting of Norconsult Holding the owners . The primary responsibilities and safeguarding the execution and Norconsult comprises the parent AS . The Board shall make it possible for of the Group’s Board and the frame- follow-up of the business activities . company Norconsult Holding AS, which as many shareholders as possible to work governing the Board’s work are owns all the shares in Norconsult AS . participate in the General Meeting and described in the Rules of Procedure for Responsibility for the functional areas at No employee owns more than one (1) ensure that the General Meeting is an the Board of Directors . Norconsult is assigned to defined per cent of the shares . 93 per cent of effective meeting place between the corporate roles established by the CEO . the shares are owned by Norconsult AS Board and shareholders . The composition of the Board and The corporate roles are responsible for employees, 6 per cent by Norconsult terms of office for various board ensuring that the line organisation AB employees and the remaining shares Nomination Committee, members are described in the compa- complies with the requirements by employees in other subsidiaries . shareholder-elected board members ny’s Articles of Association . The Board established in the governing documents The Nomination Committee for consists of three external board and updating these in accordance with The company has two share classes Norconsult Holding AS is the Group’s members, three shareholder-elected changes in the function’s risk profile . (A and B shares) . All shares confer equal Nomination Committee and consists of and three employee-elected members . voting rights, with the exception of four members . Members of the The Board may establish select A new internal audit unit was treasury shares . The shares are not Nomination Committee of Norconsult committees as it deems necessary . established in the Group during the last freely tradable and must be sold back to AS shall at all times be the same as During the last period, the Board had a period . The purpose of the internal the company when employees leave or those of Norconsult Holding AS . The Share Committee, a Compensation audit function is to assist the Board of reach retirement age . All shares are Nomination Committee shall propose Committee and an Audit Committee . Directors and corporate management traded through the company in candidates for election to the Board of The duties of the Audit Committee are in exercising good corporate accordance with the current share Directors by shareholders, as well as the described in separate instructions . governance through an independent holders’ agreement . remuneration of board members . The and objective assessment of whether Nomination Committee proposes Norconsult does not have a corporate the Group’s most important risks are Corporate governance candidates to the Board following assembly . This is due to the fact that the adequately managed and controlled . The company has a clear delineation of interviews with the Board, management employees are well represented on the duties between the Board of Directors and shareholders . Board by three employee-elected and management . Members of the representatives . company’s executive management may

The new City Bridge in Flekkefjord was completed in October 2018. Norconsult has been responsible for preparation of the construction plan. The bridge provides good conditions for cyclists and pedestrians, as well as a solution for boat traffic under the bridge. Photo: Southern Region of the 10 Norwegian Public Roads Administration 11 A word from the CEO | This is Norconsult | Strategy 2019–2021 | Heads for tomorrow | Selected projects 2018 | Our market areas | Board of Directors’ Report for 2018 | Consolidated financial statements

The little big differences Client value

When we succeed in creating Collaboration Digitalisation Sustainability value for our clients, we also succeed in creating profitable growth and a workplace with LiVE and LiVE PRO satisfied employees.

We create value through smooth and easier to make the right choices that Action areas for achieving our goals effective collaboration result in the little big differences, and The main goals as described above As valued advisers, our ability to encompasses principles for good have been operationalised in six action collaborate is closely linked to our ability management, our values and ethics . areas for the Group, two for each of the Strategy towards 2021: to deliver client value . We aim to main topics: satisfied clients, satisfied strengthen our collaboration with our In addition, we are implementing LiVE employees and satisfied owners . The six external partners and internally within PRO during the 2019–2021 strategy action areas concern: our organisation . period . While LiVE characterises our The little big differences culture, LiVE PRO characterises how we Ground-breaking projects Fully digital deliveries are our work . LiVE PRO establishes simple, We actively seek and engage in preferred choice tangible and understandable principles projects that require ground-breaking We aim to leverage digital solutions to and basic prerequisites for how we innovation in the area of collabora- gain a better understanding of our should approach our work moving tion, digitalisation and sustainability . clients, support increased collaboration forward, so that we can best satisfy our Strategic investment funds and solve our clients’ challenges more clients’ needs and help them achieve We wish to stimulate strategic quickly and with even better quality . their goals while we achieve ours . business development, innovation During the 2019–2021 strategy period, we aim to be the best at creating client value and new ways of thinking . by delivering little big differences. We will accomplish this based on three main We are a driving force for creative and Goal of satisfied clients, employees Employee development strategic topics: collaboration, digitalisation and sustainability. In addition, we aim to sustainable solutions and owners We develop further career paths and build further on our already strong corporate culture. To contribute to sustainable solutions In addition to our goal of added value the transfer of expertise . during this strategy period, Norconsult for our clients and thus even more Forward-looking management will primarily focus on ensuring that our satisfied clients, we have also set clear We are investing in today’s managers With client value as the headline for this Collaboration, digitalisation and Even though there are many important clients receive good advice on how to goals for employee satisfaction and and the next generation of managers . strategy period, we shall primarily sustainability changes that can affect our market reduce their project’s footprint and profitable growth . We visualise this as Expanding our Nordic footprint understand the client, cultivate a close The world and the market are changing areas, we believe that collaboration, energy consumption in engineering an equilateral triangle, where all the We are establishing a solid Nordic relationship based on mutual trust, at an increasing pace, and therefore it sustainability and digitalisation stand out design, construction, maintenance, sides are equally important and footprint through profitable growth . communicate openly and clearly, and will be even more important to keep up as the development trends where we operations and recycling/demolition on dependent on each other . Client New business models ensure that our clients receive what they our rate of change . When we developed can create the greatest client value . the basis of a cost/benefit perspective . satisfaction, employee satisfaction and We employ forward-looking business need . It is about all of the small things the foundation for our strategy period Based on our expertise, experience and profitability are measured, communi models and forms of contract . we do every day to develop new digital 2019–2021, we used the major global corporate culture, we aim to create A unique cultural platform cated and followed up in the entire and sustainable solutions and forms of trends as our starting point, and added value for our clients by working Good attitudes help create client value, organisation throughout the strategy collaboration . Everything we do must subsequently looked at what affected with three main strategic topics: and LiVE forms our cultural platform, period . contribute to the little big differences our ability to create value for our clients the basis for everything we do . LiVE that create added value for our clients . to the greatest extent . establishes the principles that make it

Heads for tomorrow

Employees are the foundation of Norconsult. It is the forward-looking expertise and skills that we collectively possess, which manifest in everything we deliver to our clients. We attach great importance to the continuous development of managers and employees at Norconsult.

#headsforrecruitment

With the vision We create solutions for the most challenging projects, we are dependent on always managing to attract the best heads in the area of engineering design, social planning, technical disciplines and architecture. In 2018, close to 800 new employees started to create client value with Norconsult.

At Norconsult, we focus on combining At Norconsult, we give the students an At the end of 2018, following the top technical know-how with under- opportunity to help create value . In campaign, over 100 new graduates had standing our clients’ situation and 2018, we have worked with over 100 been offered permanent employment needs . This requires that we attract students from various colleges and at Norconsult – starting in the autumn qualified employees who are curious universities in Norway through summer of 2019 . and have a positive attitude . We seek in jobs, apprenticeships and dissertations . particular those who are willing to take They have been given an opportunity to initiative, assume personal responsibility learn more about what it is like to be a and contribute to a good dialogue with consultant and work for us . our clients at an early stage . We can make your ideas fly In our recruitment work, we mobilize In 2018, we carried out the recruitment greatly through social and traditional campaign, “We can make your ideas fly” media to attract and communicate with in Norway, and we brought a paper both new graduates and experienced airplane folding machine to the candidates as potential new employees . educational institutions we visited . The To ensure our visibility and awareness, students could fly their own ideas to we make sure that we have a broad Norconsult through the machine, social presence at educational institutions and media or e-mail, and more than 300 other relevant arenas where we ideas landed with us during the encounter our target groups . campaign . Random winners were selected from the contributors at each This paper airplane folding machine has been on tour throughout Norway. We held more than 20 career days, educational institution we visited, who During our recruitment campaign, “We can make your ideas fly”, more than 300 company presentations and profession- won a plane ticket home for Christmas . ideas landed with us. al days at universities and colleges In addition, a jury selected six of the throughout Norway in 2018 . We best ideas, and the contributors were present the exciting opportunities that given a day at Norconsult to learn more Norconsult has to offer at these events . about innovation and network building, We also attach importance to show in addition to getting to know the casing our good working environment company better . and our unique culture .

HEADS #headsforcareer FOR CAREER

MARKED

OPPDRAG OG

PROSJEKTERING ORGANISASJON MARKED

FAG MARKED

At Norconsult, employees can FREMTIDSRETTET develop their careers in the areas LEDELSE of markets, projects/engineering design, technical disciplines or At Norconsult we facilitate further development of our employees’ qualifications in line management. the best interests of our clients, the Group and individual employees. At Norconsult, employees can develop themselves in the areas of markets, projects, technical disciplines or line management.

We are particularly interested in giving a performance review with their closest focus on understanding the client, 115 employees completed the BASIC management course in the subject one-year course . In 2018, 47 younger employees an opportunity and manager with personnel responsibility . building teams, taking control and course, which was held six times at project management, in collaboration Norconsult employees completed the the necessary support to take on creating a flow in accordance with different offices . with the Norwegian University of internal VDC course . exciting challenges, and genuine Forward-looking management: Norconsult’s management system Science and Technology (NTNU) . responsibility in projects, as early as Projects and engineering design NORMS, regardless of the technical The course MULTI is offered at Completion of the course gives 7 5. The Norconsult Academy is responsible possible . A Young Professionals’ Council Norconsult’s business concept is to discipline or geography . All training Norconsult AS for project and engineer- university credits, and the course was for Norconsult’s programme of courses has been established at Norconsult AS, ensure the quality of clients’ infrastruc- attaches importance to safeguarding ing managers in medium-sized and completed by 26 employees in 2018 . and training . It is offered to all employ- which contributes to a positive ture and building projects by providing people, the environment and materials interdisciplinary projects . The course ees and includes both internal and development for the company from the value-enhancing consulting expertise . To in accordance with technology, gives the participants a broader To increase our expertise in Virtual external courses, gatherings and other perspective of of our younger employ- ensure that we create client value in the economics and progress . introduction to the planning and Design and Construction (VDC) as an development measures . In addition to ees . The Young Professionals’ Council execution of projects, regardless of the management of projects in NORMS . execution model for interdisciplinary these courses, the Norconsult Academy reports to corporate management and size, is decisive for Norconsult’s success All new employees at Norconsult AS In 2018, 180 employees completed the projects, Norconsult arranged a offers a range of other courses that provides input on what the company is and development . Consequently, participate in the company’s intro MULTI course . The course was held one-year course in the subject for support project execution, such as like as a workplace for younger employ- Norconsult has a strong focus on ductory programme INTRO, which is nine times at four different office employees and clients in 2018 . This was courses designed for special roles in ees, as well as other relevant issues to expertise development and training held at the head office in Sandvika . locations . arranged in collaboration with AF projects and courses on legislation and ensure the development of the compa- activities in project execution and The course consists of the e-learning Gruppen . VDC is an execution model standards, as well as courses that help ny . The Young Professionals’ Council management . Most of the courses in course in project execution and BIM For project and engineering managers that improves interaction between the promote our focus on digitalisation of also arranges several social events for engineering management, project “The Key to Norconsult” and subse- that are responsible for the largest, actors in projects by focusing on the value chain . the younger employees in the company . management and project execution are quently a classroom-based course in interdisciplinary and most complex common goals for all the actors and developed and facilitated by the Group’s which the participants meet the projects, the SENIOR programme is techniques that ensure transparent, Forward-looking management: The desired career and expertise own role models in relation to client management and are given an intro offered . This is a forum for network participatory processes . VDC ensures Technical disciplines development path is mapped for each value and enduring relationships through duction to the management system . building and strategy development, more efficient planning, in which the Professional career paths support employee in an annual performance successful project execution . The In 2018, 374 employees completed the combined with courses to promote creation of value, transparency, Norconsult’s project activities, where review with their immediate superior . training actively contributes in this way INTRO programme . expertise development for and the optimised construction and quality are the most important learning arena is The performance review is also an arena to our internal expertise and the exchange of experience between project key . The course was led by Professor through work on projects . Facilitating for feedback from managers with exchange of experience between the At Norconsult, the course BASIC is managers . In 2018, 31 project managers Martin Fischer from the CIFE Institute at our employees’ professional develop- personnel responsibility on goals and course holders and participants . The offered to project managers for smaller participated in the SENIOR programme . Stanford University in the USA . ment gives Norconsult a competitive achievement . This lays the foundation course offerings are systematised in the projects with one or few technical Norconsult has 18 certified VDC advantage by giving the Group cutting- for further learning, deliveries, improve- “Project Levels”, which shall ensure that disciplines involved . This course In addition to the internal courses, consultants now, and we have deve edge expertise and putting it in the ments and development . In 2018, all of the employees practise uniform focuses on the basic requirements for Norconsult AS employees can partici- loped our own course based on the forefront of technology . This is the employees in the Group completed methods for project execution . We project managers in NORMS . In 2018, pate in a company-specific project syllabus and internal expertise from the essential, so that we can create

absence due to illness at Norconsult AS was 3 4. per cent . We are making a #headsforsustainability focused effort to reduce absence due to illness . All employees of Norconsult AS were offered flu vaccinations in 2018 .

At Norconsult AS, we are working systematically to identify risks and mitigate risk factors in work situations . All employees of the company are responsible for ensuring that risks solutions for the most challenging regions . In the technical discipline All managers with personnel responsi- related to projects and work tasks are Norconsult contributes to a more sustainable society and generates benefits for projects and find sustainable solutions networks, elements and levels of bility are offered courses in practical identified, evaluated and documented . the community through innovative and targeted consultancy services. Norconsult’s that will give our clients the greatest expertise, common training needs and management, and participate in the consultancy services, charitable partnerships and business management are all value . relevant external course offerings are Management Forum to stay up to date One of our goals is that no one shall characterized by our point of view: that the prioritisation of sustainability through identified . The identification of required professionally, for network building and be injured or become ill as a result of social and environmental considerations provides added value for our clients. A number of internal technical discipline expertise and elements of expertise in a for the exchange of experience . working for Norconsult . We share the networks have been established for all particular discipline provides a basis for industry’s motto that “everyone shall the disciplines at Norconsult AS to continuous professional development, at We create solutions for the most arrive home safely” . Health and safety ensure technical discipline leadership . both the company and employee levels . challenging projects considerations are an integral part of All employees must be a member of a Norconsult’s culture is of decisive the company’s management Norconsult works actively to ensure we In countries with a high risk of corrup- network covering the disciplines in Forward-looking management: importance to the high quality of philosophy and routines . The do not breach internationally recog tion, Norconsult systematically checks which they provide advice and services . Organisation deliveries, a good working environment company is working on a variety of nised principles and guidelines related the contractual parties in advance with The purpose of these technical discipline Norconsult wishes to ensure that and a solid reputation . LiVE is the measures to reinforce the safety to human and employee rights, as well regard to integrity and ethics (Integrity networks is to ensure the transfer of employees who are active ambassadors foundation for the Group's culture and culture at Norconsult, including as corruption . Due Diligence) . expertise between their members across for the company’s culture and have consists of 10 principles for manage- efforts to change attitudes and boost the organisation and between different both talent and ambitions for business ment, values and ethics . These describe awareness regarding safety, during Norconsult has a whistleblower channel Suppliers to our activities in the Nordic regions . At present, we have 24 technical and personnel management, are given how we collaborate with colleagues inspections on and outside building where employees can report censur- region are followed up with respect to discipline networks, in addition to the an opportunity to realise these . and clients, how we relate to society, and construction sites . able conduct and any breaches of the ethics by all the significant suppliers and disciplines that are primarily exercised Norconsult conducts a “Leadership and how we succeed . Group’s ethical guidelines . business partners signing the Group’s within an organisational unit . Each Review”, an annual mapping and Everyone at Norconsult shall have principles for – and a declaration of – technical discipline network has its own evaluation of performance and We measure satisfaction and compliance equal opportunities and rights, All our employees complete an annual ethical standards for business partners . coordinator who, together with the potential to become one of the Group’s with LiVE, and we map the employees’ regardless of gender or other personal e-learning course in ethics . In the technical director, is responsible for the top managers . This is carried out perception of Norconsult in various areas attributes . We are making a focused course, employees have to consider strategy and development of the through dialogue in the management in the annual employee survey LiVEing . effort to increase both diversity and ethical dilemmas that are relevant to technical discipline in the company . The groups and in connection with the The results of this survey form the basis the percentage of women in the Norconsult’s activities . All Group networks organise technical discipline annual performance review . The for further development of the company company, and there has been a employees sign an annual declaration gatherings through the Norconsult “Leadership Review” process ensures and continuous improvement of the positive development here . 42 per stating that they have read and under- Academy . At the technical discipline that we have the necessary manage- working environment . cent of the new graduates we stood and will comply with our ethical gatherings, the members of the network ment preparedness and mobility, and recruited to Norconsult AS in 2018 guidelines . are given an opportunity to stay up to that we are conscious of the develop- For the fifth year in a row, Norconsult were women . date professionally and exchange ment of talent for internal career paths . has measured job satisfaction, commit- experience . Each technical discipline ment and management as separate In recent years, the overall percentage network has set up its own technical Being a manager at Norconsult entails indices in the Group’s companies in the of women has increased to almost 33 portal and discussion forum on Norcon- responsibility for employees and Nordic region . In 2018, 82 per cent of per cent in the Norconsult Group, and sult’s intranet . Technical information, financial results, as well as the commer- the Group’s employees in the Nordic in Norconsult AB the percentage of examples, templates, check lists and cial, strategic development of the region responded to the survey . All the women is around 40 per cent . news are exchanged here . company . Our leaders are of decisive indices that are measured in the survey importance to the expertise develop- show that Norconsult generally scored In the years to come, we will continue The members of a technical discipline ment of our individual employees, as highly for the working environment . to work on increasing diversity and network are mapped with respect to well as implementation of the the percentage of women at their expertise, so that employees with Norconsult Academy. Absence due to illness at Norconsult AS Norconsult, both in the operating the relevant expertise can be identified is around 3 percentage points below units and the recruitment of new across the company’s organisation and the Norwegian average . In 2018, overall managers .

#headsforresponsibility Norconsult has entered into collaboration with the cross-country skiing team, Team Norconsult, which focuses on young senior athletes.

Norconsult has many commitments beyond its consultancy services, and demonstrates corporate social responsibility through collaboration agreements, fund-raising drives and sustainable initiatives.

Based on our strategy for social In Zimbabwe, one of our employees work supervised by employees of In 2018, Norconsult renewed its collaboration agree- responsibility, we support initiatives and assisted the Norwegian organisation Norconsult, a mentor scheme and ment with the charity organisation MOT for three collaborate with organisations within Midlands Childrens Hope Project with financial support to build a modern more years. our three pillars: children and young the supply of hot water and electricity laboratory at the school . people, expertise and a local supporter . to a new orphanage in the city of Gweru . Two employees working with Team Norconsult Engineers Without Borders (EWB) water and sewage in Sweden travelled In 2018, Norconsult AS entered into a Norconsult AS has collaborated for together with three students from three-year collaboration with the many years with the organisation Chalmers to Tanzania to work on the cross-country skiing team Team Engineers Without Borders (EWB), a water supply for a school in Mavuno . Norconsult . The team focuses on special interest organisation that young senior athletes, and it is the first provides expertise in engineering to MOT ever senior cross-country team in Asker Norwegian aid organisations . The In 2018, Norconsult signed a new og Bærum . The motivation of the agreement gives, for example, agreement with the charity organisation participants is to be able to combine employees of Norconsult an opportunity MOT and will continue its collaboration athletics with education locally, so that to travel abroad to contribute expertise for three more years . MOT works to they have an opportunity to hold onto to vulnerable countries and areas . create robust young people in a society talent in the local community . Through Norconsult AB has entered into a that includes everyone . MOT's coaches the collaboration, Norconsult and the separate agreement with Engineers are a regular feature of our INTRO team wishes to contribute to more Without Borders, and our architects in course for new employees . recreational joy for youth in local Two employees from Norconsult AB travelled to Tanzania to work on the water supply for a school in Nordic – Office of Architecture collabo- sports, by keeping good role models in Mavuno. Photo: Ole Hallberg rate with Architects Without Borders NRG the local community . (AWB), which is a corresponding Norconsult AS has entered into organisation for architects . collaboration with Norway’s first Sarkomer mathematics and science high school, Norconsult AS continued its In 2018 two employees from NRG . The lower and upper secondary collaboration with the patient and peer Norconsult AS travelled on an assign- school is located in Sandvika, and it is organisation Sarkomer in 2018 . Two ment for EWB . One employee travelled the only approved upper secondary employees act as mentors for patients to Miravalle in Columbia to assist in profile school with in-depth instruction with sarcoma, and provide guidance planning the power supply to a recently in mathematics, natural science and and support during or after the patients’ established camp that is working to technology in Norway . Norconsult and treatment . reintegrate and establish good living NRG have entered into formal, long- conditions for former gorilla soldiers term collaboration with the common Our Christmas gift this year after generations of warfare . goal of contributing to greater interest Our Christmas Gift for 2018 was given in mathematics and science . The to causes that our employees in agreement entails, for example, project Norway voted for . An amount totalling In Zimbabwe, an employee assisted in the supply of hot water to a new orphanage.

NOK 500,000 was donated to these organisations: The Norwegian Cancer Society, Norwegian #headsforenvironment Child Cancer Society, Norwegian Association for Children with Congenital Heart Disease, Hospital Clowns, WWF, Doctors Without Borders, SOS Children’s Villages, the village Cababuyan in the Philippines and the Red Cross .

We have made extra efforts in a village in the Philippines, Cababuyan, which was hit by a disastrous mudslide in the autumn of 2018 . We have contributed to getting survivors the help they need after the disaster to rebuild the village, by purchasing handmade soaps for our employees, among other things . The production and sale of soaps contributes to much needed Norconsult is aware that its activities affect the external environment, first and income for the survivors . Earlier, Norconsult in foremost through the advice we give to our clients. Sustainability is a main topic the Philippines has, in collaboration with NRK’s of our future strategy. In 2018, a sustainability director was appointed, who will Nils and Ronny, helped build a library in the same contribute to reinforcing our focus on sustainable solutions in our projects. village .

Plogging In addition to Norconsult’s central collaboration At Norconsult, we have a clear ambition We are working to reduce the Group's our environmental footprint, both in our agreements, we have supported a number of of being a driving force for creative and environmental footprint through various own organisation and in our projects . local initiatives in 2018, such as sports teams, sustainable solutions . In order to improvement projects, in accordance We are working systematically with the summer camps, “plogging” – a combination of contribute to sustainable solutions, we with the Group’s ethical guidelines and reduction of our energy consumption jogging and picking up rubbish – at several of our focus in particular on giving our clients environmental obligations . Require- and waste from our activities, environ- offices in Norway . good advice on how to reduce their ments to safeguard the external mentally friendly procurement, and project’s footprint and consumption of environment have been implemented transport that is as environmentally Scandinavia energy in engineering design, construc- in the Group’s management system friendly as possible, both to and from Norconsult’s subsidiaries in Scandinavia demon- tion, maintenance, operations and NORMS . At Norconsult AS, this is part of the workplace and on official travel . strate corporate social responsibility through recycling/demolition from a cost/ the company’s routines for project An annual climate and environmental various measures and initiatives . The architects at benefit perspective . execution, in accordance with the report is prepared through the Nordic – Office of Architecture participate in the requirements for the technical and Eco-Lighthouse scheme . UN sustainability initiative the Global Compact, Our greatest impact and effect on the professional quality, time, finances, and and they published their first sustainability report environment is through the advice we health and safety . Norconsult AS has a large group of in 2018 . They have also initiated the project give our clients in their projects, and experts with specialists in safety, “Get a foot in the door”, where they invited our ambition is to present good, Norconsult is an active participant in security, risk management, health, and young, start-up architecture offices to participate sustainable solutions to our clients . We the Green Construction Sector the working environment and external in some of their projects . This is so that they can work actively to find innovative and Network, an initiative designed to environment, as well as life cycle establish good references and be competitive in sustainable solutions that will reduce promote a green, fossil-free future and analyses . Our expertise covers a broad architecture competitions . CO2 emissions and energy consum secure the sector’s competitiveness . range of climate-related issues, such as ption and result in less intrusive The network is an informal forum for basic knowledge of how the climate is Norconsult A/S supports the “Danmarks- encroachments on nature and the developers, consultants, contractors, changing, measures to reduce green- indsamlingen” fund-raiser every year . This environment, using more environmen- suppliers and other operators . house gas emissions and adaptation in involves 12 of Denmark’s largest humanitarian tally friendly materials and improved order to withstand climate change . We organisations coming together to achieve the UN traffic safety . We work systematically to Our activities are primarily office-based, also have consultants qualified under sustainable development goals, by helping evaluate the risk and opportunities in so the operations cause no discharges certification schemes such as the people in the world’s poorest countries in the planned and designed solutions in to water or the air . Norconsult AS is Eco-Lighthouse scheme, ISO 14001 selected areas and projects . In 2018, they raised order to avoid any injuries to personnel certified under the Eco-Lighthouse’s environmental management systems over DKK 78 million . who will be building or operating the main office model, and all our major and BREEAM . solutions . office locations participate in this Norconsult AB supports several initiatives in the scheme . This gives us strong local roots Gothenburg area, including Gothenburg Giro’s and motivation for our work to reduce Cycling School, Faktum and Giving People .

Raskiftet Wind Farm, a project in which Norconsult has assisted the developer OX2 on the electrical side with analyses, engineering design, contracting and follow-up of the site during the construction period. Photo: Joachim Lagerkrantz, OX2 24 25 A word from the CEO | This is Norconsult | Strategy 2019–2021 | Heads for tomorrow | Selected projects 2018 | Our market areas | Board of Directors’ Report for 2018 | Consolidated financial statements

The little big differences

To ensure that we deliver correctly and to a high standard, we must understand our clients, cultivate good relationships and be able to deliver whatever creates added value – the little big differences. We shall create this client value by making collaboration, digitalisation and sustainability a natural part of the way we work. This will characterise what we deliver as we enter a new strategy period.

Selected projects in 2018 Ill . : Norconsult

We execute 20,000 projects, both large and small, every single year. Our employees create solutions for the most complex assignments, as New E39 Kristiansand West – Mandal East: well as in many small projects. Some of the projects we have worked with in 2018 include the dementia village, Carpe Diem in Bærum, Design of the E39 section between the largest airport hotel in the Nordic region at Kastrup outside of Copenhagen, and the Nedre Otta Power Plant – Norway’s largest on- Kristiansand and Mandal going hydropower development project. A more in-depth description of eight of the projects we have worked with in 2018 follows here.

Norconsult is designing the new E39 section for Nye Veier. In the project, the construction What: client has stipulated requirements that make Norconsult and the contractor stretch EPC contract for Nye Veier themselves a little further. With a mutual goal of making the building and civil engineering AS, AF Gruppen is the EPC industry a little more efficient, we are working on further development of the automation contractor of engineering design work. Place: On completion, the E39 section from The project will be executed in accordance Vest-Agder, Norway Kristiansand West to Mandal East will consist with the VDC method, and LEAN thinking of a four-lane motorway with a speed limit will be the guiding principle: More flow and Client: Nye Veier AS of 110 km/h . This section encompasses less waste . The engineering will be done at three large intersection areas and seven the right place at the right time . Project period: bridges, one of which is a 520 metre long 2018–2022 bridge over Trys Fjord with a navigation Detailed BIM model clearance of 60 metres . Five tunnels will The project plans will be entered into a Norconsult’s deliverables: also be constructed on this section . This detailed BIM model that also covers Everything required for includes the Søgne Tunnel, which will be progress, quality, financial tracking, OHS AF Gruppen to construct and the longest tunnel in Southern Norway at and the external environment . The project document the project over four kilometres on completion . is planned for completion in the autumn of 2022 . Norconsult’s disciplines The project will be executed with extensive include: use of digital technology, and it is import- AF Gruppen is the EPC contractor, and the Roads, landscape, signs, ant to point out that BIM in this case will contractor Kruse Smith is also on the team . constructions, geotechnical en- entail more than just the technical aspects . Over time, Norconsult has acquired a great gineering, engineering geology, Therefore, the focus will also be on deal of experience with EPC contract water and sewage/surface interdisciplinary forms of collaboration, projects . This is a major and important water, electrical engineering, methods and attitudes . Each technical transport project for the company, in lighting and SRO, tunnels, devel- discipline has its own model manager in which we are collaborating with reputable opment planning, the external the project . operators to build safe and good roads in environment, acoustics, OHS . Southern Norway .

Carpe Diem Dementia Village: Nedre Otta Power Plant:

What: Increased quality of life for Norconsult designs another Norconsult’s second drawing- people with dementia fully digital hydropower plant less power plant Place: Oppland, Norway

Client: Eidsiva Vannkraft AS When Norconsult and Nordic contribute to the construction of the Carpe Diem Dementia What: The Nedre Otta Power Plant is Norway’s largest ongoing hydropower development Village, the planning will take place in accordance with the newest BIM standard. The Shared housing for people with project. The power plant will be commissioned in 2020, and with its two Kaplan turbines, Project period: 2015–2020 residential and treatment centre for people with dementia was inspired by the De Hogeweyk dementia it will have a total throughput of 180 cubic metres of water per second. This drawingless Dementia Village in the Netherlands. project requires a great deal of interaction, and it has been very successful so far. Norconsult’s deliveries: Place: Bærum, Norway Choice of concept, docu- The residential units, residential and throughout the entire facility . Two different The Nedre Otta Power Plant is a full-scale number of disciplines, Norconsult is mentation for the authorities, treatment centre and communal house “levels of care” are being planned: 136 Client: Municipality of Bærum BIM project, in which the building and civil responsible for interdisciplinary coordina- preparation of tender docu- appears like a normal village with natural residential units in shared housing and 22 engineering work will be carried out tion, which takes place by means of an ments, detailed engineering Project period: 2017–2020 boundaries and interplay with the surround- reinforced dementia places . The residents in without the use of drawings . The detailed interaction model . This enables an design ings . The communal house and admini the shared housing will live a normal life engineering design takes place simulta immediate understanding of the interaction Norconsult and Nordic’s stration form a square with an urban with a familiar homelike atmosphere neously as the civil engineering work, and between the disciplines . Not a single error Norconsult’s disciplines deliveries: expression . The whole complex has been including a square, shops, places to eat and a model is distributed every other week . By has been made so far in the preparation of include: Preliminary engineering design, designed to create a homely atmosphere in good areas for social and cultural arenas . breaking away from drawings, Norconsult the work specifications . This is mostly due Analyses and special construc- detailed engineering design, a typical small house neighbourhood, with has established a work method that has to how the model has been used with tions; concrete technology; follow-up gardens and outdoor spaces . The village is Passive house standard generated a great deal of client value in the engineering design and interaction, and it BIM; dams and watercourse divided into small units, where variations in Natural and durable materials such as tiles project execution . has contributed to a very good collaborative engineering; electrical Norconsult’s and Nordic’s the shape of the roofs and number of floors and wood will be used for the façades . In climate between the actors in the project . engineering; fish and fresh- disciplines include: give the village an attractive appearance . addition, the buildings will conform to the Requires interdisciplinary collaboration water ecology; geotechnical Architecture and buildings passive house standard and be equipped and interaction Clean, renewable energy for 15,000 engineering; hydrology and A place for increased quality of life, with solar panels on the roofs . The users, Hydropower projects require a great deal households watercourse hydraulics; indus- activity and coping family members, employees and other of interdisciplinary interaction . One option The Nedre Otta Power Plant will contribute trial heating, ventilation and The facility of approximately 18,000 square stakeholders were invited at an early stage is to present the interdisciplinary nature of to the fulfilment of Norway's obligations in sanitation and climate technol- metres, provides nice grounds for the user to talk about what having a good life in the the project by thousands of drawings . accordance with the Renewable Directive . ogy; engineering geology and group . The goal is to establish a place that village would entail, and how it could Norconsult has, however, chosen to place The hydropower plant will be connected mining engineering; construc- will give the residents the best possible mirror the life they are used to . Finding everything in a common model, so that to the main grid in Vågåmo, which is within tional engineering; risk and vulnerability analyses; the environ- quality of life . Adapted buildings and good and smart solutions will take place in everyone in the project has a common the defined deficit area in Central Norway . ment; fire and explosion safety; outdoor spaces gives the residents an close cooperation with the residents, understanding of what is being built . In The power plant will generate enough tunnels and underground facili- opportunity for increased activity and family members, employees and partners . addition to the engineering design of a power for over 15,000 households . ties; hydropower planning and mastery, and they can wander freely watercourse dynamics .

30 31 Photo: Visco – Yara International ASA

Yara Birkeland: Fully digital terminal facility for the world’s first autonomous container ship

The autonomous, electrical container ship, the Yara Birkeland, will transport mineral What: fertiliser from Herøya to the ports of export, Brevik and Larvik. Norconsult is responsible Engineering design of the for the fully digital planning of the 200 metre quay and container terminal that is being quay facility for the world’s first constructed to handle the ship. autonomous container ship

Not only is the actual container ship The contractor can see the areas of the Place: autonomous and without an operator, construction to which the quantities refer, Telemark, Norway transporting the containers between the which makes it easier to understand what loading sites in the factory area and the new construction parts to price, and help Client: terminal will also be autonomous . All the prevent errors . Yara Norway operations will be preprogrammed, and the Project period: containers must therefore be stacked on Replaces 40,000 annual lorry journeys 2017–2020 the quay with a high degree of precision . In When in operation, the emission-free a stack of four, the quay and container area container ship will replace 40,000 annual Norconsult’s deliveries: at Herøya will be subjected to extreme lorry journeys . This will help reduce both Pilot study, detailed engineer- loads, substantially heavier than normal . greenhouse gas emissions and traffic on the ing design, project manage- local roads . In planning the container ment and monitoring of the Advanced BIM model terminal, Norconsult has contributed to construction phase All engineering design will take place in an illustrating and optimising interaction advanced BIM model, and communication between autonomous and the traditional Norconsult’s disciplines with the building site and construction operations at the terminal . To reduce include: client will take place in BIM . Because all of greenhouse gas emissions, the company Responsible applicant, BIM, the work specifications for the contractor has worked to optimise the use of materials building engineering, electrical will be communicated in the model, the in the project . For example, using concrete engineering, contaminated project is drawingless . Technical specifica- with a reduced amount of cement and slim soil, geotechnical engineering, tions are linked to the model, and the structures, while maintaining the durability port engineering, construction- quantities are retrieved directly from the and load-bearing capacity . al engineering, environmental BIM model . consulting, project administration, water and sewage, roads and streets

Norconsult has assisted in the renovation of 48 settling basins at the VEAS facility, which is Norway’s largest treatment facility 32 and a major contributor in keeping the Oslo Fjord clean. Photo: Johnny Syversen 33 A word from the CEO | This is Norconsult | Strategy 2019–2021 | Heads for tomorrow | Selected projects 2018 | Our market areas | Board of Directors’ Report for 2018 | Consolidated financial statements Photo: Visco – David Gubler, bahnbilder . ch

Iron Ore Line: General plan for the City of Gothenburg: Conducting geotechnical surveys on the Norconsult is assisting in the development world’s oldest iron ore line of a general plan for the City of Gothenburg

The Iron Ore Line runs between Luleå in Sweden to Narvik in Norway, and it is the world’s What: Norconsult AB has assisted the Municipality of Gothenburg with the development of a What: oldest railway of its kind. Increasing transport demands have resulted in capacity Norconsult is conducting general plan for the city. The plan shows a schematic diagram for how the city will use Development of a general plan challenges, and Norconsult won the contract to conduct geotechnical surveys on sections geotechnical surveys on the land and water areas to best serve the interests of the population, and so that the city for the City of Gothenburg of the route. world’s oldest iron ore line continues to be the region's engine. The work will be carried out in close cooperation with the municipality’s own project group. Place: As one of Sweden’s most important and Kopparåsen–Vassijaure . Norconsult will Place: Gothenburg, Sweden railways for the transport of freight, iron conduct geotechnical surveys and field Luleå, Sweden – Narvik, In accordance with the Swedish Planning including population growth, climate ore and passengers, the section between work for the dual track railway between Norway and Building Act, all municipalities shall have change and how various population Client: Luleå and Narvik has a high level of traffic . Kiruna and the Norwegian border . an updated general plan, and the municipal- groups are to be integrated in the city . Municipality of Gothenburg Client: Every day, around 30 iron ore trains pass in Norconsult is also responsible for reports ity required support for this . Norconsult won Gothenburg is facing several challenges, Swedish Transport Project period: both directions, and there are ever on the environmental impact of the work, the contract and is now part of the due, among other things, to the fact that Administration 2017–2019 increasing demands for longer and heavier as well as survey work . municipality’s project group . The work there are great differences in the living and trains . consists primarily of process management, health conditions . Public transport, the Project period: Norconsult’s deliveries: On the third section (Peuravaara–Rautas), as well as consulting related to the statutory localisation of public institutions and a new 2016–ongoing Process support, editorial work Will solve the capacity problems Norconsult is a consultant to Saitec, with requirements and an environmental impact building structure can contribute to for the preparation of reports, As a result of the demand for longer and responsibility for geotechnical engineering assessment . Norconsult has also provided reducing these differences . Norconsult’s deliveries: illustrations for the strategy heavier trains, the Swedish Transport and the design of the section . Altogether, Geotechnical surveys, field assistance for separate sub-reports, and the map, green structure, etc ., as Administration has initiated a project with five new railway plans are to be developed work and environmental production of text, layout and illustrations In addition to showing where the popula- well as sub-reports . several sections to solve the capacity for the three sections . impact assessment for the report . tion will live, the plan will show how the challenges . Single-track railways will city should be developed, so that a greater Norconsult’s disciplines become dual track railways, and some of The Iron Ore Line is the only railway in Norconsult’s disciplines Impacting work with sustainability share of the population is given an include: the meeting places on the route will be Sweden that allows an axle load of 30 include: The population of Gothenburg is expected opportunity for a good life with walking Planning, the environment upgraded to simplify the trains meeting . tonnes, which means that the trains weigh Geotechnical engineering, to grow by 250,000 by the year 2050 . distance to public transport and services . and traffic/transport 8,600 tonnes, are 750 metres long and track and railway engineering, Competition for the areas is increasing, Urban development must take place so Together with Saitec, a consortium has have a total of 68 cars . landscape, water and ground and it is a challenge to ensure that the city that the natural resources are managed in been established to solve the challenges surveys is developed in step with its growth . The a sustainable manner, and that the impact for two of the sections: Rautas–Bergsfors general plan affects the prerequisites for a of climate change will remain at an sustainable development of the city – acceptable level .

Comfort Hotel, Copenhagen Airport: 420 kV transmission line Alaska–Sherwood, Zimbabwe: Design of the Nordic region's Studies and specifications for a 160 km largest airport hotel power line in Africa

With the construction of a 39,000 square metre hotel, Kastrup Airport will have the largest What: The transmission grid in Zimbabwe is of key importance to the exchange of power between What: airport hotel in the Nordic region. The hotel encompasses 619 rooms, a conference centre, Design of the Nordic region’s the countries in the Southern African Power Pool (SAPP), and a new power line will eliminate Studies and specifications for a skybar and restaurants. largest airport hotel a bottleneck in the system. Norconsult has been engaged as a consultant to prepare new 160 km power line technical and financial documentation for requesting tenders and financing projects. Place: Place: The hotel rooms are spread across three The ambition is to attract more internation- Kastrup, Denmark In the mid-1990s, Zimbabwe constructed Ensures a stable and clean supply to Zimbabwe, Africa wings floating on top of the 3,000 square al conventions and meetings by offering a new power lines to several neighbouring industry and the capital metre conference centre . meeting environment without limitations . Client: countries . At the same time, the countries Zambia and Zimbabwe are planning to Client: Strawberry Properties / Hent in the region established close cooperation build a new 2,400 MW hydropower plant in Zimbabwe Electricity Transmis- The height of the wings differs between Norconsult is using 3D modelling (Revit) for the exchange of power through SAPP . Batoka on the Zambezi River . The project sion and Distribution Company the eleventh and twelfth floors based on for the project, which contributes to Project period: Since then the system in Zimbabwe has includes two 400 km long 420 kV lines to Project period: the minimum altitude for aircraft ensuring interdisciplinary control and that 2017–ongoing been an important corridor for trade . the central and eastern Zimbabwe . The 2018–2019 approaching the airport . quality project materials are delivered . The Alaska-Sherwood line will be a key part of Norconsult’s deliveries: building fulfils the newest energy and Will eliminate bottlenecks in the grid this system and contribute to ensuring a Engineering design/consulting Norconsult’s deliveries: Adds a vibe and energy to the airport area environmental requirements in accordance There is a lot of hydropower in the north and stable supply in central areas of the Feasibility study, specifications, The hotel adds a vibe and energy to the with BR20 . There will be solar panels on thermal production in the south, and trade country . Other hydropower projects in the Norconsult’s disciplines tender document and tender area, a quality that will help attract people the roof of the hotel . over the regional power exchange SAPP region will also benefit from a higher include: evaluation to Kastrup Airport – an airport that is opens up the possibility of optimising transmission capacity in the system, the Civil engineering and sewage; expected to handle 40 million passengers Norconsult has executed a constructive, constructions and statics; production . Periods of low inflow in the power line thus contribute to reducing the Norconsult’s disciplines annually . Nordic Choice Hotels already complex project, in which a conference hall heating, ventilation and north also entail the need for substantial need to develop coal-fired power . include: manages the Clarion Hotel Copenhagen with a ten-storey hotel on top will be sanitation; electrical and low support from the south . The lack of Electrical engineering, system Airport, which is a first-class full-service constructed in the northern section . This voltage systems transmission capacity, however, limits the Norconsult has long experience from studies, route assessments and hotel . When the Comfort Hotel has been constructed with three large steel trade, and the Alaska–Sherwood line is one Zimbabwe and the region, and together preliminary design for lines and Copenhagen Airport becomes its closest lattice girders, since the construction client of several measures to eliminate bottlenecks . with our partners, we have established stations, as well as contract neighbour in 2020, they will offer some- wanted the conference hall to be con- models for the system to identify solutions support thing together that suits all the target structed without columns . The lattice and estimate future trade . The route for the groups . The two hotels will be a new hub girders are approximately six metres high line has been mapped using LiDAR (optical for meetings and conventions . and span over 20 metres . remote measurement) from aircraft .

Our market areas Ill . : Ranheimsvegen 9 AS/HENT AS/ Voll Arkitekter/Vizwork

Norconsult’s services focus on social planning, engineering design and architecture, and we organise our services in eleven market areas: Transport, Buildings, Energy, Water, Industry, Oil and Gas, Environment, Risk Management, Planning, Architecture and IT. Norconsult’s services encompass planning and consultancy services for all phases of projects: from the concept phase Ranheimsvegen 9 in Trondheim has been designed in accordance with the passive building standard and is certified in accordance with BREEAM-NOR as and general plans and planning and operational support. “Very Good” . Norconsult has provided assistance for energy calculations, building physics, daylight calculations and the assessment of solar panel installations .

Transport Buildings

Norconsult has broad interdisciplinary expertise in all Norconsult’s expertise and references encompass all the transport-related disciplines, and many years of experience disciplines involved in the development, planning and design in planning and engineering design of transport systems in of everything from standalone buildings to the development Norway and abroad . This enables us to work on everything of new areas and urban districts . Our consultancy expertise from small road projects to the largest and most complex covers every need, from the concept and outline phase to transport projects related to motorways, railways, tramways, detailed engineering in the construction phase, and into the ports, airports and tunnels . Our experience and expertise in operational and maintenance phases for both new buildings EPC contracts are in demand in the market . and renovation projects . Our Buildings business area has a strong interdisciplinary presence at most of Norconsult’s Our employees have solid professional backgrounds and offices, which enables us to service all of Scandinavia with our varied theoretical and practical experience from planning local expertise and capacity . and design projects, in addition to participation in various types of civil engineering . This allows our interdisciplinary Through continual development we adapt to changes and team of transport experts to deliver effective solutions for needs in the market and among our clients . We have devel- society’s transport-related challenges . oped specialist resource pools that ensure we are among the leading consultancies for segments such as commercial construction, schools, hospitals, care homes, housing and sports facilities . Our aim is to lead the field in engineering design processes and planning methodology . Important elements of this work include digitalisation, Lean techniques and interaction with simultaneous engineering design – key tools being VDC (Virtual Design and Construction) and fully digital BIM (Building Information Modelling) .

Lysebotn II is the largest power plant that has been constructed In Norway since the Svartisen Power Plant in 1993, and it improves the supply of renewable The Narvik Shipping Facilities consist of a preparing plant for high-grade ore concentrations and a logistics chain for transport, as well as a new export termi- energy to businesses and households in Southern Rogaland . Lysebotn II has been a very large project for Norconsult, and we have contributed to all the nal at the port of Narvik . Norconsult has provided assistance for a feasibility study, outline project, pilot study and engineering design of the emptying system technical disciplines in the detailed planning phase . and loading system .

Energy Water and sewage Industry Oil and gas

For more than 80 years, Norconsult has helped to imple- Norconsult’s expertise ensures a reliable water supply, Norconsult plays a key role in major investment- and devel- Norconsult is an independent, highly qualified supplier of ment renewable energy development and supply across the provides environmentally-adapted and effective sewage opment projects for a number of industrial companies, both interdisciplinary engineering services in the oil and gas market . entire globe . We have participated in the engineering design solutions, takes into account future climate change and in Norway and abroad . In recent decades, sustainability, in We assist our clients with consultancy and engineering design and follow-up of a large percentage of Norwegian hydro- fulfils the safety requirements that apply to our projects . the form of emission reductions and better resource and services for projects that encompass, among other things, power, wind power and district heating production, as well Water is an essential resource that creates the basis for life energy utilisation, has made an important contribution to onshore terminals and storage facilities, both the expansion as associated transmission facilities . We have developed our and development . Consequently, water resources have many of our industrial projects . With long-standing indus- of existing installations in operation (brownfield) and new ter- specialist services to best serve the interests of society and to be utilised in a sustainable manner and safeguarded for trial experience, we have acquired in-depth knowledge of minals (greenfield), as well as installations for the production/ our clients . Our interdisciplinary expertise helps us to gain a future generations . Norconsult offers the largest consultancy industrial processes, needs, logistics and various functional distribution of liquid natural gas and biogas (LNG/LBG) . thorough and extensive understanding of the entire energy resource pool for water and sewage services in Norway . We requirements . system: from production, through the transmission network, are a specialist provider of consultancy services covering For offshore projects, we have special expertise in the to the consumer . all aspects of water and sewage, from source assessments, This makes us a highly effective interdisciplinary partner for analysis of offshore steel and concrete structures, as well as water treatment and sewage treatment plants to drainage industrial applications within all types of industry . A com- rotating machinery, and in the technical disciplines . Oil and Our services range from early-phase consultancy and systems, all of high quality and with a long lifetime . bination of solid theoretical expertise and more than eight gas projects require effective interdisciplinary collaboration, feasibility studies through procurement assistance, detailed decades of practical experience means we are well placed large capacity and relevant experience in the execution of engineering design, environmental assessments, construc- In urban areas, we have extensive experience from the coor- to deliver a wide range of consultancy and engineering complex projects, many involved parties and tight deadlines . tion management, system testing and commissioning to the dination of complex technical infrastructure, such as water design services for industrial enterprises, from the earliest Engineering design that focuses on HSE, good planning and operational phases, including environmental monitoring, and sewage plants, cabling systems, district heating/cooling feasibility studies, through planing, design and tender work preparation for safe execution on the construction site are measurements, analyses and reassessments . We attach great and waste extraction . We also have specialist expertise in and construction management, as well as verification/GMP, critical to the successful completion of projects . Norconsult’s importance to securing and upgrading existing facilities . blue-green values, such as local run-off management, open- to operations, maintenance and production optimisation . employees have extensive experience from large, complex ing up streams and natural cleaning of run-off water . oil and gas projects from all phases of the project’s life cycle: from the earliest feasibility studies, through planning, design and inquiries/contract documents/construction management, to operations, maintenance plans for the finished installations and the removal of installations .

Vehicle barriers at Oslo Airport Gardermoen . In 2018, Norconsult assisted Avinor with the preparation and updating of risk analyses and general security risk Together with Skanska AS, Norconsult has won the price and design competition for a new public health centre and swimming pool in Orkanger . The centre analyses for over 40 airports . Norconsult has also assisted in auditing Avinor’s emergency preparedness documentation at the operative and strategic levels . will house a swimming pool and the municipal health services, and will be integrated with the current sports and climbing hall, as well as the local park grounds and outdoor sporting activities .

Environment Risk Management Planning Architecture

Norconsult is a driving force for creative, sustainable solu- Our specialist groups in risk management combine specialist Norconsult offers one of Norway’s leading centres of exper- Norconsult has become one of Norway’s largest and most tions . We give our clients advice on how they can reduce knowledge with broad interdisciplinary experience from risk tise in social planning and urban development . We employ versatile architectural groups over a short period of time . their project's footprint and consumption of energy from a analysis and active risk management for public and private economists, geographers, architects, landscape architects The acquisition of Nordic – Office of Architecture in 2018 cost/benefit perspective . actors . This makes us highly qualified to assess risk in all the and engineers to create vital and vibrant cities and places . We confirms Norconsult’s strong focus on architecture, and has market areas . are passionate about sustainable development in a constantly strengthened the competitiveness of both the companies . Good climate, environmental and sustainability solutions are changing society . We analyse, understand and shape physical Norconsult is Norway's leading, nationwide architectur- of decisive importance to added value for our clients and Risk management, dimensioning of preparedness and environments . Using smart, forward-looking and sustainable al group, with many large and small architecture offices society . Our job is to understand and meet our clients’ needs conducting analyses are challenging interdisciplinary solutions, we contribute to both general and local planning . throughout Norway . We are better equipped than ever to and expectations at the right level . Our consultants work processes . An independent assessment of undesired Our planners concertedly look at planning and mobility in meet the digital transition, and our focus provides better de- together closely through our nationwide network, allowing us incidents, threats and vulnerability is important in or- context, with the aim of developing forward-looking trans- velopment opportunities for all the architects in the Group . to leverage interdisciplinary synergies and spot opportunities, der to reduce risk . Norconsult can help to reduce risk port solutions and good residential and urban environments . In particular, it enables the creation of a permanent architec- establish interfaces, elaborate viable and efficient solutions by establishing and developing a robust safety culture, People play a defining role throughout our projects . tural footprint throughout Norway . and make the effects of projects clear . Creative processes and management systems and expertise development, as well as collaboration with our clients are a natural part of the way we preventive measures and preparedness . We combine strong expertise with creativity and enthusiasm, Our broad presence enables us to see local needs, and our work (co-creation) . Through this and our internal research and and facilitate inclusive work processes, dialogue and inter combined power ensures high quality regardless of the size development programme, we are establishing new methods action . Good communication and engagement are essential of the projects . We have high ambitions and ideals as archi- for the environmental solutions of the future . premises if a high standard of quality is to be achieved for tects, and it is inspiring to be able to link this to Norconsult’s both the processes and final deliveries . We place great impor- broad experience and strength in the engineering disciplines . Norconsult has one of Norway’s largest interdisciplinary tance on presentation and on visual and written communica- This means that we handle work with an interdisciplinary, consultancy groups in the area of the external environment, tion . Our interdisciplinary capabilities and geographic reach uniform and credible approach, ensuring a high standard of climate and sustainability . Our employees offer customised allow us to be flexible with regard to the type of project, size quality, innovation and forward-looking choices . Due to our products and cost-effective solutions that comply with and geographic location . focus on lasting architecture, lasting beauty and lasting life, regulatory requirements. we call ourselves the architecture office of the future .

Hololens is the latest in AR glasses . AR stands for Augmented Reality, and with such glasses you can place digital elements (3D models and holograms) in real environments and interact with them . This will become a very important tool for Norconsult in the future .

Norconsult’s IT solutions are organised under the subsidiary Norconsult Informasjonssystemer (NoIS), one of Norway’s leading software houses . NoIS develops, markets and supplies end-to-end IT solutions for the engineering design, construction and management of infrastructure and property . Our strength lies in combining professional knowledge and modern technology to create user-friendly and efficient IT solutions .

NoIS is a leading supplier of software solutions for Geographic Information Systems (GIS/NIS), property rates, waste management and client data management for local authorities, as well as property management and building management systems . The company also offers market-leading solutions for project management, digital tender processes, project costing, Life Cycle cost calculations, structural engineering and BIM (Business Information Modelling) .

Our solutions are collected under a common brand, ISY, which symbolises user-friendly knowledge systems, with more than 30,000 users in the Nordic region . The company also deliver consultancy services for IT project management, IT consulting, IT architecture, systems development, system integration, machine learning and AI .

In November 2018, Norconsult and the subconsultant Bjørbekk & Lindheim AS, presented a project proposal “Pearls on a Fjord” to 44 45 the Municipality of Bærum. Ill. Norconsult A word from the CEO | This is Norconsult | Strategy 2019–2021 | Heads for tomorrow | Selected projects 2018 | Our market areas | Board of Directors’ Report for 2018 | Consolidated financial statements

Board of Directors’ Report for 2018

Norconsult reported significant further growth in 2018 . The Board of Directors is satisfied with the revenue and earnings performance and the continued growth of the company, both organically and through acquisitions . The higher level of activity, good project execution and satisfied employees contributes to a more positive performance . The company’s goal is to continue profitable growth and increased client value through a good understanding of clients and focus on collaboration, digitalisation and sustainability .

Board of Directors’ Report 2018

Our business

Revenues for 2018

Nordic Region Revenues for 2017 25% Head Office

Nordic Region 44% 23% Head Office 5,326 39% NOK million International 4,624 4% NOK million Consultancy services 84% Staffing 9% Consultancy Services 86% IT 7% Regions Norway Staffing 8% Regions Norway 34% IT 6% 32%

Norconsult’s Board of Directors– , from the left: Michelle Wright, Ole Fossen, Nils Morten Huseby, Idunn Helen Kirkreit, Roar Engeland, Harald Trosvik, Vegard Jacobsen, Mari Thjømøe and Olaf Bøckmann. Business organisation Office, Regions Norway, and the Nordic in social housing construction and Norconsult is comprised of the parent Region . To adapt to the market situation public buildings projects . company Norconsult Holding AS, and enhance the synergies in the which owns all the shares in Norconsult Group’s energy-related operations, the In 2018, Norconsult also acquired the IT Introduction AS . Norconsult Holding AS is entirely international subsidiaries outside of company Fundator AS, which is one of owned by the Group’s employees . Europe were reorganised and placed Norway’s strongest and most exciting under the parent company’s Energy groups of experts in systems develop- Most of the Group’s interdisciplinary operations as of 2018 . As a result, the ment, machine learning, IT architecture consultancy services are performed International business area was discon- and IT consulting . With the acquisition through the company Norconsult AS tinued, and its operations were trans- of Fundator, Norconsult has become and its subsidiaries outside Norway . ferred to the Head Office business area . one of the leading suppliers of software Norconsult is Norway’s largest, and one of the Nordic region’s leading, inter In addition, the Group provides IT and consultancy services in the area of disciplinary consultancy firms for social planning, engineering design and archi- consulting and solutions for project Norconsult continued to develop its IT . In addition, the Group acquired the a tecture. With 96 offices and approximately 3,800 employees at the end of 2018, management, infrastructure and cutting-edge expertise, delivery few smaller companies, such as our business activities span most of the world, but we have a particularly strong property through the wholly owned capacity and geographic presence in Sivilingeniør Anders Overrein AS, Nordic footprint. subsidiary Norconsult Informasjons 2018 through strategic company Tind & Tyri arkitekter AS and systemer AS (NoIS), while the company acquisitions . In 2018, Norconsult Arkitektene Berg og Østvang AS . The company leads the field in Norway, Norconsult’s vision is: We create drawings and functional specifications, Technogarden specialises in recruit- acquired a total of seven companies . and has gradually built itself up to solutions for the most challenging pilot studies and the preparation of ment and staffing for engineering, Nordic – Office of Architecture is the Norconsult’s activities contribute to a become a significant challenger in the projects . We achieve this as a result of specifications and tender documents, project management and IT expertise in Group's largest acquisition so far . With a sustainable society through innovative Swedish and Danish markets . The the depth and breadth of our expertise including operating and maintenance Norway and Sweden . shareholding of over 90 per cent in and targeted consultancy services . Group also has international activities and experience, and by winning routines, to project management and Nordic, Norconsult has positioned itself In choosing solutions, Norconsult gives outside the Nordic region, particularly in attractive projects involving challenges quality assurance . On 1 February 2018, Norconsult as one of the major and leading careful consideration to the more the energy market area . that require innovation and new ways Holding AS sold all the shares in the architecture actors in the Nordic region . vulnerable areas of society and offers of thinking . The Group's revenues showed strong company NO Eiendom AS, which was This acquisition opens up new oppor significant expertise in environmental The head office is located in Sandvika, growth in 2018 . The Board of Directors is the owner of the property Vestfjord tunities for collaboration in several issues, safety, risk management and outside Oslo . Norconsult has a strong Norconsult enhances our surroundings satisfied that the company has improved gaten 4 in Sandvika, to the property segments of the value chain . The contingency planning . local presence in its main strategic through its projects in Buildings, its operating profit compared with earlier management company Oslo Areal AS, Group has also strengthened its markets, with established offices in the Transport, Energy, Water, Industry, years in spite of strong competition in the while entering into a long-term lease position in Sweden in architecture and The level of activity was high in 2018, and Nordic region (Norway, Sweden, Environment, Oil and Gas, Risk Manage- market . Our growth strategy remains in that expires in 2030 . The sale was buildings through the acquisition of the company was involved in many Denmark and Iceland), Northern Europe ment, Architecture, Planning, IT and place, and the company will continue to based on a strategic decision to Arkitekthuset Monarken AB, which exciting projects . Examples of projects in (Poland), Africa (South Africa and Staffing . Norconsult executes more focus on profitable growth, providing our streamline our operations and release made us one of the ten largest Norway include the new Bodø Airport, Mozambique) and Asia and Oceania than 20,000 projects of all sizes clients with added value through a capital that can be reinvested in our architectural firms in Sweden . In urban development and engineering (Malaysia, the Philippines and New annually for public and private sector thorough understanding of the client and core business . addition, the Danish consultancy firm design of Bispevika in Oslo, the Intercity Zealand) . clients . Our services include planning, focus on important strategic investments KAAI – Kærsgaard & Andersen A/S was project Drammen–Kobbervikdalen, the engineering design and follow-up of in digitalisation, sustainability and In 2018, the Group’s operations were acquired in 2018 . This acquisition joint project the Ringerike Railway Line various project phases, from architect collaboration . organised into the business areas Head strengthens our expertise and capacity and E16, E18 Tvedestrand–Arendal,

Board of Directors’ Report 2018

E39 Kristiansand West – Mandal East, the expenses during a period when the Company’s core operations continue Norconsult Informasjonssystemer AS Market outlook: Good markets, but Increased digitalisation is bringing great carbon capture plant for Norcem and company’s head office was being to show a strong performance acquired Fundator AS at the beginning stiff competition opportunities to Norconsult . Smarter hospital projects, such as the new upgraded . In addition, the Group made The Head Office business area, of 2018 . The new acquisition was a This past year saw a continuation of the tools and ways of working give us an Hammerfest Hospital and the new several acquisitions during the year, geographically centred in Oslo and strong contributor to revenue growth positive macroeconomic trend that has opportunity to deliver even higher Drammen Hospital . Outside Norway, which have entailed a significant Akershus and with a national catchment of NOK 90 million to NOK 355 million characterised Norconsult’s main quality to our clients, can enhance the Norconsult’s projects have included the increase in revenues, but where the area in several market areas, made the in total for the year . markets in recent years . In Norway in efficiency of our project execution and preparation of a general plan for the City contribution to earnings after straight- greatest contribution to the Group’s recent years, public investment in areas provide added benefits for our clients, of Gothenburg in Sweden and the line goodwill amortisation (in accor- operating profit in 2018, as in previous The Regions Norway business area such as infrastructure and the upgrad- Norconsult and society . The develop- engineering design of the largest airport dance with Norwegian GAAP) was years, but the Regions Norway and reported revenues of NOK 1,736 million ing of public buildings has largely ment of technology in the industry, hotel in the Nordic region, the Comfort lower than for other operations . It is Nordic Region business areas showed for 2018, compared with NOK 1,612 compensated for a lower level of combined with changes in the forms of Hotel at Kastrup . expected that this will be offset through the greatest relative growth . million for 2017, an increase of NOK activity in the oil sector . With good contract and collaboration, require the continued integration and development 124 million (7 7. per cent) . There was growth in the private sector, including consultancy sector to develop and Growth strategy maintained, with of the business operations . The Head Office business area reported positive revenue performance for all the an increasing level of activity in the oil adapt the way it works . It is for this improved earnings for the Group the greatest increase in revenue for the regions in 2018, and the Interior, and gas sector, unemployment reason that innovation, digitalisation The Group reported revenues of NOK The capital gain from the sale of year, with gross revenues up NOK 363 South-Eastern and Western regions continued to fall throughout 2018 . In and smart work processes are all high 5,326 .3 million for 2018, which Norconsult Eiendom AS has been million on 2017 (2018: NOK 2,396 were particularly strong . the coming years the shift to a greener, on the agenda at Norconsult . represented an increase of NOK 702 .1 calculated to be NOK 464 0. million for million, 2017: NOK 2,033 million) . more sustainable society is expected to million (15 .2 per cent), compared with the Group . The total operating profit for Of this amount, Nordic – Office of In the Nordic region, revenues in- bring increased demand for efficient, The ability of the company to assimilate 2017 (NOK 4,624 .3 million) . Operating Norconsult after the capital gain from Architecture contributed NOK 176 creased approximately 23 per cent in climate-smart solutions in construction, new technology and digital work profit was NOK 401 8. million, and the sale of property is accordingly NOK million (during the ownership period) . 2018 compared with the previous year transport and energy . models (BIM) in projects is attracting increase of NOK 30 9. million over 2017 865 8. million for 2018 . (NOK 1,367 million for 2018, compared international attention . With his (NOK 370 9. million) . The underlying The divisions at the head office with NOK 1,112 million for 2017) . The The company expects that the expan- presentation on “VR in railway projects”, operating margin was 7 5. per cent, The operating profit from the Group's (excluding the Energy division) delivered operating profit improved, and all the sive financial policy implemented in Norconsult’s Thomas Angeltveit won down from 8 0. per cent in 2017 . business activities were very good in an increase in gross revenues of NOK groups in the business area have report- recent years during a challenging the “DKTalent” competition at the 2018, primarily due to high activity 70 million, from NOK 1,279 million in ed a positive performance for 2018, period for the oil and gas sector will Norwegian innovation conference Den The operating margin declined levels and strong project execution in 2017 to NOK 1,349 million in 2018 . The especially Technogarden . The company gradually be scaled back due to the Kloke Teknologi in 2018 . Norconsult somewhat, primarily due to the sale of our core operations in Norway and the Energy division and the international Technogarden and its subsidiaries improvement of the private sector and was also awarded the GeoBIM Europe’s Norconsult Eiendom AS, which had rest of the Nordic region . subsidiaries increased their revenues by increased their revenues from NOK 386 the associated fall in unemployment . Leadership Award for Digital Innovation made a substantial contribution to NOK 24 million, from NOK 478 million million in 2017 to NOK 454 million in The shift from public consumption to for its innovative work on drawingless earnings, as well as extraordinary rent to NOK 503 million . 2018, an increase of NOK 67 million increasing private consumption will take projects and gaming technology . For (+18 per cent), primarily through the place gradually over several years, and the second year running, the company recruitment of new consultants in a the current National Transport Plan also went through to the final round of growing market . indicates major investments in transport the AEC Excellence Awards . for the coming years as well . Many of The NOAB Group increased its gross Norconsult’s public sector projects Norconsult is the largest interdisciplin- revenues by NOK 112 million (+19 per have a long time horizon, and such ary consultancy firm in Norway, and cent) to NOK 695 million in 2018 . This projects are expected to continue to one of the leading players in its field in growth included the acquisition of make up a substantial share of our the Nordic region . Even though Revenues (MNOK) Operating profit (MNOK) Operating margin (%) Arkitekthuset Monarken AB, but the project portfolio . competition in the market remains underlying organic growth was tough, Norconsult is well equipped to nevertheless very strong . The NOAB Consolidation in the Scandinavian continue delivering profitable growth 5,000 10 500 Group increased its revenues from NOK market continues . Other major players over the coming years . The overall 582 million in 2017 to NOK 694 million in the market also made several picture is of a large market for the 4,000 400 8 in 2018 . acquisitions in 2018 . Norconsult broad range of services that Norconsult continually monitors potential acqui is able to offer, and we are well In spite of the challenges in the Life sition candidates, both large and small, positioned to adapt to future 3,000 300 6 Sciences market in Denmark, gross assessing these on the basis of factors developments in the market . revenues increased by NOK 55 million such as compatibility with our strategy 2,000 200 4 (41 per cent), largely on the back of the and corporate culture . acquisitions of Skovhus Arkitekter A/S 1,000 100 2 and KAAI A/S, but also due to good growth through recruitment during the year . The revenues of Norconsult

2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Denmark increased accordingly from NOK 134 million in 2017 to NOK 189 million in 2018 .

¹ In this context, consultancy is defined as all client-related activities in the Group with the , exception of IT and Staffing .

Board of Directors’ Report 2018

Employees, organisation and development, as well as the exchange of level . There was a general improvement Health, safety and the working experience and network building, where in this area in 2018 . environment the environment selected focus areas in strategy and Norconsult is committed to maintaining management will be thematised . In At the end of 2018, the percentage of the health and safety of all its employ- 2018, 193 managers from the Group women in the Norconsult Group was ees in accordance with the Group’s participated in 11 Leadership Forum 32 5. per cent, an increase of 1 .2 ethical guidelines . Compliance with gatherings . percentage points over the previous requirements relating to health, safety Norconsult’s most important asset is our employees and their expertise. The company year . In Norconsult AS, the percentage and the working environment is an works systematically to attract the most qualified employees with the best expertise In addition to these arenas, the Executive of women was 29 9. per cent, an integral part of the Group’s manage- and attitudes in accordance with the Group's cultural platform, LiVE. We also actively Committee (EXECOM), arranges an increase of 0 5. percentage points over ment system NORMS . endeavour to retain and develop our workforce. At the start of 2019, the Group had annual gathering for executive managers the previous year . The percentage of around 3,800 employees. in the Group, where selected focus women in management positions at Norconsult has zero tolerance for areas in strategy and management Norconsult AS increased from 21 per harassment and offensive behaviour . development are the topics . The 37 cent in 2017 to 23 6. per cent at the end The company has had a dedicated Expertise development and technical In cooperation with the Research with a more theoretical introduction to managers who were in the target group of 2018 . For the Group, the percentage whistleblower channel since 2013 for discipline leadership Council of Norway, Norconsult in project management . Participants participated in EXECOM in 2018 . of women in management positions reporting any censurable conduct, Qualified employees Norway makes provisions so that acquire 7 5. university credits by was 27 6. per cent, an increase of 3 .1 where the whistleblower can remain With the vision We create solutions for employees can complete an industrial completing the course . In 2018, 26 Equal opportunities and rights percentage points over the previous anonymous . the most challenging projects, we are PhD . This is how Norconsult contri employees completed the project Everyone in the Norconsult Group shall year . A total of 33 .3 per cent of the dependent on constantly attracting the butes directly to long-term industrial management course at NTNU . have equal opportunities and rights, Group’s Board were women . Norconsult All the employees complete an annual best heads in the area of engineering research and ensures that company regardless of gender or other personal AS’s Working Environment Committee e-learning course in ethics . On the design, social planning, technical employees acquire PhDs and research- To increase our expertise in Virtual attributes . One of the company’s goals consists of four women and two men, course, employees have to consider disciplines and architecture . Norconsult related work experience in areas of Design and Construction (VDC) as an is to raise the percentage of women in and Norconsult AS’s head safety ethical dilemmas that are relevant to actively recruits recent graduates and relevance to the company . In 2018, five execution model for interdisciplinary the operating units and at management delegate in 2018 was a woman . Norconsult’s activities . All Group experienced employees, through career employees in Norway were working on projects, Norconsult arranged a days, company presentations and an industrial PhD with support from one-year course for employees and professional days at universities and Norconsult . clients in collaboration with AF Gruppen . colleges throughout Norway . The course was led by Professor Martin Development of project managers Fischer from the CIFE Institute at All new employees at Norconsult AS The BASIC course is offered to project Stanford University in the USA . participate in the introductory pro- managers for smaller projects with only Norconsult currently has 18 certified gramme, held at the head office in one or few technical disciplines VDC consultants, and we have devel- Sandvika, including an e-learning and involved . In 2018, six courses were oped our own course based on the classroom-based course . The course completed at various Norconsult AS syllabus and internal expertise from the includes a meeting the management and offices in Norway, and there were a course . In 2018, 47 Norconsult employ- an introduction to NORMS and BIM . In total of 115 participants . ees completed the internal VDC course . 2018, 374 employees completed the introductory programme . The course MULTI is offered at Development of managers with Norconsult AS for project and planning personnel responsibility At the end of 2018, 47 5. per cent of managers in medium-sized and At Norconsult AS, all managers with Norconsult employees held a Master of interdisciplinary projects . In 2018, this personnel responsibility are offered the Science or corresponding qualification, course was arranged nine times at four course “Practical Management” . The and 45 4. per cent held a Bachelor of locations, and there were a total of 180 topics for this course include role Science or corresponding qualification . participants at Norconsult AS in Norway . perception, the Working Environment Of the Group's employees, 45 held a Act, internal guidelines and stress PhD at the end of 2018 . Project and engineering managers mastering for ones self and others . In responsible for the largest, interdisci- 2018, 160 managers at Norconsult AS Norconsult AS facilitates professional plinary and most complex projects and participated in the Practical Manage- development by offering employees paid contracts participate in the SENIOR ment course, which was arranged eight study leave and financial support for both course . In 2018, a total of 31 project times at five office locations in Norway . further education and course attendance . managers participated in this course . To receive financial support, the profes- Managers with personnel responsibility sional development must satisfy the In addition to the internal courses, in the Group participate annually in a commercial needs of Norconsult’s clients Norconsult AS employees can partici- two-day mandatory management and the company . In 2018, 39 Norconsult pate in a business-specific project development programme, the AS employees received financial support management course with the Norwe- Leadership Forum . This is a forum for further education . gian University of Science and Technol- staying updated on client compre Alison Lem and Katrine Opdahl Sousa work with BIM, VR, VDC and drawingless projects, methods that significantly increase communication and ogy (NTNU) . This provides employees hension, business and management understanding between the parties in a project . Norconsult would like to see even more women actively contribute to further development in the area of digitalisation moving forward .

Board of Directors’ Report 2018

employees sign an annual declaration are strong ambassadors of culture . The In the company’s system for processing and those who work with solutions that In 2018, there was an increased focus 2018 . An annual environmental report is stating that they have read and survey also shows that 93 per cent of incidents, all kinds of incidents are Norconsult has modelled, calculated on how the company can contribute to prepared through the Eco-Lighthouse understood and will comply with our the employees would recommend registered and processed . Such and/or designed . The company is reducing the challenges of climate scheme . ethical guidelines . 100 per cent of the others to work for Norconsult, and that incidents include injuries and near- working on a variety of measures to change through its projects and employees in the Group have comple 92 per cent of the employees are injuries, environmental damage, reinforce the safety culture at services . Sustainability is key to the Norconsult’s energy requirements in ted the e-learning courses in ethics five generally satisfied with their job . damage to property and related Norconsult, including work to change company’s 2019–2021 strategy period, the offices are primarily covered by years in a row (2014–2018) . near-misses, non-conformance, attitudes and boost awareness regard- and a sustainability director has been electricity, and in the case of the head Absence due to illness at Norconsult AS observations, suggested improvements, ing safety during inspections on and appointed, who will contribute to office, partly through waterborne In the employee survey, 86 per cent of is around 3 percentage points below findings from external inspections and outside of building and construction strengthening and safeguarding the district heating/cooling . Norconsult the respondents in the Group stated the Norwegian average . In 2018, overall external complaints . The system is an sites . All employees are responsible for company and its services in this area . leases some company cars for business that they were familiar with the content absence due to illness at Norconsult AS important element of the company’s ensuring that occupational risks relating Norconsult provides a number of travel and owns a few electric cars . The of the ethical guidelines and the was 3 4. per cent . Over the last five work with continuous improvement, to projects and work tasks are identi- services related to sustainability and charging of electric cars is facilitated . requirements they make of the years, absence due to illness at learning, transfer of experience and risk fied, evaluated and documented . Health climate change, and our employees According to the company’s guidelines employees . In the same survey, 83 per Norconsult AS has risen 0 6. percentage prevention . and safety considerations are incorpo- have expertise and interests that include for the choice of a car, only low cent responded that they were familiar points . The largest increase was in the rated into the company’s routines for basic knowledge of how the climate is emission cars are included in the with Norconsult’s whistleblower company’s long-term absence . The In 2018, a total of 32 HSE-related project implementation . changing, measures to reduce green- scheme . Norconsult actively endea channel for censurable conduct . company is making a concerted effort incidents were registered, i .e . incidents house gas emissions and climate vours to reduce its volume of waste . to reduce absence due to illness . All related to people, the environment or The company’s absence due to illness adaptation measures to withstand The company participates in return and A total of 85 per cent of the respon- employees of Norconsult AS were property . Of these incidents, there were and injury statistics are reported to the climate change . recycling schemes for consumer goods dents in the Group stated that it was offered flu vaccinations in 2018 . two lost-time injuries, seven injuries corporate management every quarter . where such schemes have been accepted practice in their unit to without lost time, one of which required Efforts are being made to reduce the established . Routines have been address and discuss dilemmas in order In addition to the pleasing results of the medical treatment, and 10 near-injuries Corporate social responsibility, sustain- company’s environmental impact established for leasing PCs for the to reduce doubt about ethical conduct employee survey LiVEing and low involving Norconsult’s employees in ability and the external environment through various improvement projects, company’s employees, with a supplier and the right course of action . absence due to illness, Norconsult also work-related situations . The main way in which Norconsult in accordance with the Group’s ethical that guarantees either reuse or environ- In countries with a high risk of corrup- has a low employee turnover rate . exercises its corporate social responsi- guidelines and environmental obliga- mentally friendly recycling of discarded tion, Norconsult performs systematic There were 225 employees in the The company’s stated aim is that no bility is through the services the Group tions . Requirements for safeguarding equipment . Integrity Due Diligence on potential Group who resigned on their own free one shall be injured or become ill from delivers to its clients . Norconsult also the external environment have been contractual parties . Suppliers to will in 2018, and the resignation working for Norconsult . The company actively participates in measures to implemented in the Group’s manage- Norconsult AS’s employees are Norconsult’s activities in the Nordic percentage was 7 .3 per cent . In shares the industry’s motto that ensure that business activities do not ment system NORMS . At Norconsult, encouraged to use public transport region are followed up with respect to Norconsult AS, the total resignation “everyone shall arrive home safely”, breach internationally recognised this is part of the company’s routines such as trains, trams and buses as a ethics by all the significant suppliers and percentage was 6 .2 in 2018 . both those who work for Norconsult, principles and guidelines relating to for project execution, in accordance means of transport where such is business partners signing the Group’s human and employee rights, the with the requirements for the technical expedient, and to use video and phone principles for and declaration of ethical environment and corruption . and professional quality, time, finances, conferences whenever possible to standards for business partners . Norconsult’s basic principle for ethics is and health and safety . avoid unnecessary travel . Web confer- that everything the company does shall ences are widely used for interaction Norconsult measures satisfaction and be able to withstand public scrutiny . At the end of 2018, 257 of the Group's between company employees, across compliance with LiVE, and we map the Absence due to illness (%) permanent employees had relocated to geographic areas and organisational employees’ perception of Norconsult in Norconsult is aware that its own the Powerhouse Kjørbo office, which is units, for major professional confer- various areas in our annual employee activities impact the external environ- owned by Entra Eiendom . The refur- ences and to document presentations survey LiVEing . The results of this survey ment, primarily through the advice the bished office buildings have been classi- etc . form the basis for further development % 3.5 company gives to its clients, but also fied as Excellent in accordance with of the company and continuous through the actions of the company’s BREEAM-NOR, both for the design Norconsult’s professional resource pool 3.0 improvement of the working and employees’ own activities . phase and “as built” . This is the second consists of around 150 people who environment . highest of the five environmental work as specialists in safety, security, 2.5 One of the Group’s goals is to present classification levels . risk management, health and the

For the fifth year in a row, Norconsult 2.0 sustainable solutions to its clients . working and the external environment . has measured job satisfaction, commit- Norconsult AS works actively to find Norconsult’s own activities are primarily These individuals work with internal ment and management in the Group's 1.5 innovative and sustainable solutions that office-based, and therefore the improvement projects and external companies in the Nordic region as will reduce CO2 emissions and energy company’s operations do not result in projects as required . The company has separate indices . In 2018, 82 per cent of 1.0 consumption and result in less intrusive discharges to water or the air . consultants that have been qualified the Group’s employees in the Nordic encroachments on nature and the Norconsult is certified under the under certification schemes such as the region responded to the survey . All the 0.5 environment, using more environmental- Eco-Lighthouse’s main office model, Eco-Lighthouse scheme, ISO 14001 indices that are measured in the survey ly friendly materials and improved traffic and works through this scheme to (environmental management systems) 0 show that Norconsult generally scores safety . Norconsult AS works systemati- survey how the external environment is and BREEAM . Total highly on the working environment . The Short-term Long-term cally to evaluate the risk and opportuni- affected by the activities at all of results show in particular that the ties in planned and designed solutions Norconsult’s offices in Norway . This employees identify with the Group's Total Total Total Total to avoid any injuries to personnel scheme has been implemented at all of culture, and believe that the managers 2015 2016 2017 2018 building or operating the solutions . our major office locations in Norway in

Board of Directors’ Report 2018

Research, development The Board’s work, management systems and innovation and risk management

ways that Norconsult contributes to Innovation and business development Work of the Board Association, and shares can only be The Compensation Committee assists increased socio-economic benefits . Norconsult’s systematic processes and The Group’s Board shall comply with transferred between the company and the Board in evaluating remuneration In research, systematic network creative methods for innovation the requirements of the Norwegian the company’s employees . Share paid to senior executives and in building with research communities in contribute to the development of Limited Liability Companies Act to valuation is regulated by a shareholders’ establishing general principles and a Norway and abroad plays an important effective and innovative solutions for manage assets in Group companies on agreement . strategy for remuneration of key role in strengthening our position and the company’s clients in construction, behalf of the owners . The Board shall managers in the Norconsult Group . The standing as a leading consultancy firm . transport and infrastructure projects also monitor the day-to-day manage- The Board is authorised to issue shares Share Committee assists the Board in Much of the research performed in and for how we work internally . ment, which is delegated to the CEO, subject to the restrictions imposed by valuations and recommendations for Norway is carried out by universities Norconsult’s innovation process and the company’s business in general . the General Meeting . The Board is important matters related to share and research institutions . As a know focuses on technical solutions further authorised to acquire treasury ownership in the Group . The Board held ledge enterprise, Norconsult aims to be development in order to ensure that all Norconsult’s nine-strong Board consists shares . eight board meetings in 2018 . The at the forefront, and we therefore work alternatives are considered in the of six shareholder-elected representa- management and Board are also in systematically with the development of search for the best ideas . tives, comprising three external and The Group has a corporate governance contact between the board meetings as research projects . three internal board members, as well policy that is part of the Group’s required . Methodical identification of focuses as three members elected by the management system . Norconsult shall As a high-profile actor in the research and goals, professional facilitation of employees . None of the board comply with the Norwegian Code of Management system and development communities, creative working meetings and a members are on Norconsult’s Group Practice for Corporate Governance The Group’s management system Norconsult has access to the most structured, professional evaluation management team . (NUES) to the extent that the Code of NORMS (Norconsult Management Research and development recent research, and we are able to process all help Norconsult’s experts Practice is deemed relevant to a System) is based on the Group’s guiding Norconsult actively focuses on research influence research based on our own find the optimal solutions, in close In 2018, Roar Engeland was re-elected company that is wholly owned by its policies and encompasses all the and development . This enables the knowledge . The company interacts collaboration with the client . The as the Board Chair and Mari Thjømøe employees . measures for managing and improving company to offer up-to-date advice to with inspiring communities, in which innovation process is scalable and is was re-elected as the Deputy Chair . quality and HSE, implementing internal our clients and be a leader in experience and knowledge are actively used in both large and small Norconsult Holding AS’s Annual The Board has an Audit Committee to control and managing risk . NORMS Norconsult’s market areas . exchanged, networks are established projects across all the market areas . General Meeting determines the fees conduct an independent audit of the ensures compliance with legislation, and our expertise is highlighted . paid to the board members based on Group’s financial reporting and control regulations, requirements from clients Development activities largely take Using its expertise in innovation the recommendations of the systems . The Committee is also and Norconsult’s internal requirements . place as part of the day-to-day opera- Employees of Norconsult can apply for management, Norconsult develops and Nomination Committee . The responsible for supervision of the This also includes compliance with tions, where innovative solutions are company funding to complete an implements work processes adapted to Nomination Committee consists of four Group’s internal control, compliance Norconsult’s ethical guidelines and developed in the clients’ projects . Industrial PhD in cooperation with the the existing and future technological members, all of whom are elected by and risk management . The Audit requirements for accurate financial Internal technical discipline networks Research Council of Norway . requirements and opportunities . This the General Meeting . The main remit of Committee is a preparatory and advisory reporting . Norconsult’s employees can transfer knowledge between the Norconsult thereby strengthens the allows us to satisfy our clients’ expecta- the Nomination Committee is to ensure working committee for the Board, but also find the best practices and other employees, while modern IT tools academic expertise of both the tions in terms of outstanding efficiency, that the Board possesses the right blend the decision-making authority in the information in NORMS that the employ- contribute to communication and employee and the organisation in sustainability and interdisciplinary of expertise and experience . areas that the Audit Committee shall ees require to perform their work in a documentation of the solutions . New relevant areas of expertise, at the same collaboration . audit lies with the Board . uniform and efficient manner . clients benefit from this knowledge time as making a direct contribution to Under Norconsult’s ownership model, being made available, thus driving the long-term industrial research . trading of the company’s shares is In addition, the Board has a Compensa- The Board of Directors has overarching development further . This is one of the limited by the company’s Articles of tion Committee and a Share Committee . responsibility for ensuring that the

Board of Directors’ Report 2018

Annual financial statements

management system functions efficient- competitiveness and create added value Risk management Income statement, balance sheet and gain from the sale of the property at Cash and cash equivalents at the end of ly and smoothly . for our clients . Risk management in the Group focuses statement of cash flow for the Vestfjordgaten 4 . The Board of Direc- the year totalled NOK 326 9. million in particular on company risk, financial Norconsult Holding AS Group tors considers the equity ratio to be (2017: NOK 366 5. million) . Norconsult The NORMS management system is Norconsult AS is also certified under the risk, employee risk, individual project risk In 2018, the Group reported gross satisfactory . Holding AS reported a decrease in net essentially based on the company’s core Eco-Lighthouse scheme’s main office and reputation risk . The status of the operating revenues of NOK 5,326 .3 liquid assets of NOK 39 6. million in 2018 activities, namely planning and the model . In 2018, 32 of the company’s individual risk areas is continually million (2017: NOK 4,624 .3 million) and Income statement, balance sheet and (2017: an increase of NOK 75 million) . execution of projects of any size . subunits/office locations have been reported to the Board and the Group an operating profit of NOK 401 8. million statement of cash flow for Norconsult In addition, the surplus liquidity of NOK Projects are executed with a broad certified and participate in the scheme . management team . (2017: NOK 370 9. million) . The operat- Holding AS 352 4. million has been placed in range of technical expertise and a wide Only a few office locations remain to be ing margin for 2018 was 7 5. per cent, The parent company Norconsult market-based financial instruments that variety of clients . certified . Through the Eco-Lighthouse The Group continuously works to compared with 8 0. per cent in 2017 . Holding AS does not perform any can be realised at short notice as liquid scheme, we are working on mapping develop and monitor its system for risk operating activities . The operating result assets presented under net cash flow The system satisfies all the requirements how the external environment is management in all its subsidiaries to The Group reported a decrease in net was NOK -1 .3 million (2017: NOK -1 5. from investing activities . The company’s laid down in relevant legislation and impacted by the company's own avoid undesired incidents . liquid assets of NOK 14 4. million in 2018 million) . The profit before tax was NOK equity totalled NOK 511 8. million at the system standards for quality and the activities in Norway, and how (2017: an increase of NOK 76 5. million) . 492 .1 million (2017: NOK 154 7. million) . end of 2018 (2017: NOK 206 million), environment . Norconsult’s consultants can be a In 2018, the Group established an The Group's net cash flow was affected The strong increase in the financial result which corresponds to an equity ratio of driving force to ensure that our clients internal audit unit . The purpose of the by the sale of the property at Vest- in 2018 primarily relates to the gain on 50 9. per cent (2017: 21 0. per cent) . Norconsult AS has long had a certifiable, receive sustainable solutions and function is to assist the Board of fjordgaten 4, a high level of investment the sale of shares in Norconsult integrated and process-based manage- projects with an environmental footprint Directors and corporate management in activity, a dividend payment for the Eiendom AS (NOK 493 5. million) . ment system . Due to changes in the that is as small as possible . exercising good corporate governance, previous year and the purchase of legislation and expectations in the through an independent and objective treasury shares during the reporting market, the company desired to carry To ensure compliance with the compa- assessment of whether the Group's period . out the process to ISO certify the ny's routines, an extensive training most important risks are adequately management system . The management programme “NORMS in Daily Life” was managed and controlled . The cash flow from operating activities system was therefore certified in 2018 carried out, and all the company's is deemed to be satisfactory in light of Cash flow from operating activities by DNV GL in accordance with NS-EN offices in Norway held courses for their The company endeavours to minimise the company’s growth . Cash and cash NOK 500 million ISO 9001:2015 quality management employees . reputation risk by influencing the equivalents at the end of the year systems . corporate culture and attitudes of totalled NOK 500 6. million (2017: NOK 450 Norconsult AB in Sweden has been employees and business partners, as 515 0. million) . In addition, the surplus The ISO 9001:2015 certificate encom- certified to ISO 9001 and ISO 14001 for well as through follow-up supervision to liquidity of NOK 352 4. million has been 400 passes consultancy services in planning many years . The companies in Poland ensure compliance with the manage- placed in market-based financial and engineering design projects . The and Iceland are certified to ISO 9001 . ment system . instruments that can be realised at short 350 certificate applies to Norconsult AS, notice as liquid assets presented under including the head office and the Norconsult AS has received central The global risk picture for ICT security is net cash flow from investing activities . 300 company's five regions, and encom approval for the right to accept responsi- continuously changing . The company The difference between the operating 250 passes the buildings, transport, energy, bility for Project Class 3 in all relevant works systematically and purposefully to profit and cash flow from operating industry, oil and gas, water, environment, disciplines, in accordance with the make both its own employees and its activities is primarily attributable to 200 risk management, planning and Norwegian Planning and Building Act . partners aware of how to use ICT accruals and and the amortisation of

architecture market areas . In addition, Norconsult AS is a registered securely and wisely . Maintaining a consolidated goodwill . . 150 electrical service provider for all the areas uniform and modern IT infrastructure The certification is testament to the relevant to our disciplines and projects, helps reduce technical vulnerability . The Group's equity totalled NOK 1, 100 company’s strong quality culture and the and is approved by the Norwegian Preventive measures have been taken in 435 7. million at the end of 2018 (2017: value of focusing on quality at all levels . Insurance Approval Board (FG) both as a specific areas where there is a recog NOK 873 0. million), which corresponds 50 The ISO certification supports company and as a consultant . Norconsult nised need for this, and information to an equity ratio of 46 .2 per cent (2017: Norconsult’s ongoing work with AS has been prequalified through the security was a topic that was covered in 35 8. per cent) . The higher equity ratio is improvement processes, which Achilles, Utilities NCE, (formerly Sellihca), the annual ethics training . attributed to profitable growth in 2013 2014 2015 2016 2017 2018 contribute to strengthening Norconsult’s TransQ and Startbank schemes . underlying operations, as well as the

Board of Directors’ Report 2018

Financial risk Norconsult is exposed to currency Events after the reporting period and Outlook The risk of clients being unable to meet fluctuations as a result of the compa- the going concern assumption their obligations is regarded as low, as ny’s international activities . Some of No events of material importance for the Group’s bad debts have been these revenues are invoiced in NOK, an assessment of Norconsult’s position minimal historically speaking . The while others are invoiced in the local or performance have occurred since company focuses on early invoicing at currency or in USD/EUR . Under the the end of the reporting period . In all levels, and trade receivables are current currency strategy, the company accordance with the Norwegian followed up closely . hedges its currency exposure where Accounting Act, Norconsult confirms this is expedient, and where applicable that the financial statements have been Norconsult’s liquidity is deemed to be endeavours to negotiate contract terms prepared based on the assumption of a satisfactory and in 2018 operations that limit such exposure . In addition, going concern . were once again self-financing in changes in currency exchange rates virtually all the units . Surplus liquidity is affect the recognised net value of the Allocation of profit for the year Norconsult has wide-ranging expertise In general, the outlook for the markets Internationally, Norconsult will, in used for dividend payments and Group’s investments . The Board has evaluated the company’s and is diversified in several market in which the company operates is accordance with the Group's strategy, investments in operating activities or overall financial situation, including the areas, and we are well positioned for considered to be good . The company maintain its presence in the geographic acquisitions, or alternatively conserva- The scope of Norconsult’s activities is equity and future prospects, as part of the the future in our main market areas . expects strong demand for its services regions and markets where the Group tive placements in financial instruments . expanding through both organic grounds for proposing a dividend based The Group has a strong focus on risk in the foreseeable future . Faced with can utilise its unique expertise, has The company has the leeway to reduce growth and strategic acquisitions . on the net profit for 2018 . Norconsult management, its day-to-day operations fiercer competition in an increasingly competitive advantages and sees good all of the above elements if this is In recent years, the company has Holding AS reported a net profit for the are sound, and the sale of Norconsult consolidated market, there will be an business opportunities . deemed necessary based on the completed a number of acquisitions in year of NOK 492,141 million . The Board Eiendom in 2018 has enhanced the increased focus on delivering innovative liquidity . All acquisitions are subject to a which value in excess of the book value proposes the following allocation of the company’s financial solvency and and sustainable high-quality solutions to The company’s financial strength is due diligence process, and the has been identified . This excess value profit: liquidity . These are good conditions for the clients’ projects . The company will satisfactory . The Board points out at the company focuses on objects with good largely relates to employees and future growth . Norconsult is an active work hard to maintain its leading same time that forward-looking profitability, promising future prospects expertise that is recognised in the participant in the consolidation of the position as a developer of new tools, assessments are normally subject to a Allocated to and attributes that complement the rest financial statements as goodwill . In line market and is favourably positioned to interaction and ways of working . level of uncertainty, and that market dividends: NOK 178,800 million of our business activities . with the generally accepted accounting maintain its leading position in the developments are dependent on Transferred to practice, goodwill is amortised on a other reserves: NOK 313,341 million Norwegian market and reinforce its economic cycles and the performance straight-line basis over its expected position in the Nordic region . of the economy in general . TOTAL NOK 492,141 million economic life . The Group’s management and Board regularly review the value and economic life of goodwill, and any need to recognise impair- ments . This is carried out based on an evaluation of the respective units’ actual Sandvika, 11 April 2019 and expected future results .

Roar Engeland Board Chair

Allocation of profit for 2018 Mari Thjømøe Ole Fossen Idunn Helen Kirkreit Deputy Chair Board member Board member

Transferred to Allocated other reserves NOK to dividends Vegard Jacobsen Harald Trosvik Michelle S. Wright NOK 313 .3 NOK 178,8 492.1 Board member Board member Board member million million million

Nils Morten Huseby Olaf Bøckmann Per Kristian Jacobsen Board member Board member CEO

Income Statement

Consolidated financial statements NORCONSULT HOLDING GROUP

All figures in NOK ’000 2018 2017 Norconsult comprises the parent company Norconsult Holding AS, which owns all the shares in Norconsult AS. Most of the Group’s interdisciplinary consultancy services are performed through OPERATING REVENUES AND EXPENSES the company Norconsult AS and its subsidiaries outside Norway. Operating revenues 5,326,312 4,624,262 In addition, the Group offers IT consulting and solutions for project Total operating revenues 5,326,312 4,624,262 management, infrastructure and property through the wholly owned subsidiary Norconsult Informasjonssystemer AS (NoIS), while the Project costs 635,579 546,191 company Technogarden specialises in recruitment and staffing for Salaries and payroll costs 3,491,585 3,107,858 engineering, project management and IT expertise in Norway and Depreciation/amortisation of property, plant and equipment and intangible assets 117,520 102,547 Sweden. Other operating expenses 679,826 496,799 Total operating expenses 4,924,511 4,253,395

The consolidated financial statements show the income statement for Operating profit before property gains 401,801 370,867 2018 and the associated balance sheet as of December 2018 for the Norconsult Holding Group. Property gains 463,952 0 OPERATING PROFIT 865,753 370,867

FINANCIAL INCOME AND EXPENSES

Investment in subsidiaries and associates 370 4,427 Other interest income 6,093 4,342 Other financial income 23,013 20,430 Impairment of financial assets (4,159) (6,003) Other interest expenses (3,882) (3,631) Other financial expenses (21,604) (19,050) Net financial items (169) 514

PROFIT BEFORE TAX 865,584 371,381

Tax expense 118,717 108,729

NET PROFIT FOR THE YEAR 746,867 262,652

Attributable to non-controlling interests 951 0 Attributable to owners of the parent 745,916 262,652

Balance Sheet As at 31 December 2018

Assets Equity and liabilities NORCONSULT HOLDING GROUP NORCONSULT HOLDING GROUP

All figures in NOK ’000 2018 2017 All figures in NOK ’000 2018 2017

NON-CURRENT ASSETS EQUITY

Intangible assets Paid-in equity Deferred tax assets 21,687 25,049 Share capital 6,121 6,121 Client contracts, licences and software 27,294 24,356 Treasury shares (247) (215) Goodwill 498,299 211,900 Share premium account 200,137 200,137 Total intangible assets 547,280 261,305 Total paid-in equity 206,012 206,043

Property, plant and equipment Retained earnings Land, buildings and other property 8,213 170,469 Other equity 1,225,259 666,988 Chattels, equipment, office machinery 98,773 83,764 Total retained earnings 1,225,259 666,988 Total property, plant and equipment 106,985 254,234 Non-controlling interests 4,477 0 Non-current financial assets Investments in shares and units 8,008 6,991 TOTAL EQUITY 1,435,747 873,032 Loans to associates 7,191 13,031 Other non-current receivables 53,177 50,306 Total non-current financial assets 68,377 70,328 LIABILITIES Provisions TOTAL NON-CURRENT ASSETS 722,642 585,867 Pension liabilities 16,281 14,186 Deferred tax 21,664 0 Other provisions 974 9,650 CURRENT ASSETS Total provisions 38,918 23,836

Receivables Other non-current liabilities Earned, non-invoiced income 344,310 254,231 Other non-current liabilities 38,524 20,321 Trade receivables 1,067,133 927,811 Total other non-current liabilities 38,524 20,321 Other receivables 122,922 154,563 Total receivables 1,534,365 1,336,604 Current liabilities Trade payables 202,774 179,629 Investments Advance payments from clients 70,273 66,240 Other market-based financial instruments 352,438 0 Tax payable 79,469 83,415 Total investments 352,438 0 Public duties payable 506,419 433,401 Proposed dividend 178,800 289,000 Bank deposits etc. Other current liabilities 559,166 468,620 Cash and cash equivalents 500,645 515,024 Total current liabilities 1,596,900 1,520,305 Total bank deposits etc. 500,645 515,024 TOTAL LIABILITIES 1,674,343 1,564,463 TOTAL CURRENT ASSETS 2,387,448 1,851,628 TOTAL EQUITY AND LIABILITIES 3,110,090 2,437,495 TOTAL ASSETS 3,110,090 2,437,495

Statement of cash flows

NORCONSULT HOLDING KONSERN

Alle tall i 1 000 kroner 2018 2017

Operating activities Profit before tax 865 584 371 381 Tax paid for the period (106 926) (88 586) Gains/losses on sale of property, plant and equipment (465 641) (452) Gains/losses on sale of investments 0 0 Depreciation and amortisation 117 520 102 547 Other income statement items with no cash effect (7 990) 566 Change in earned, non-invoiced income (68 453) (57 641) Change in trade and other receivables 72 842 (141 409) Change in current liabilities 64 274 132 867 Change in pension liability 2 094 351

Net cash flow from operating activities 473 305 319 623

Investing activities Investments in intangible assets (15 662) (14 205) Investments in property, plant and equipment (43 263) (49 040) Proceeds from the sale of property, plant and equipment 5 269 1 426 Acquisition of subsidiary (341 785) (64 143) Disposal of subsidiary 560 886 (1 847) Acquisition of other market-based financial instruments (500 000) 0 Disposal of other market-based financial instruments 150 203 0 Investment in financial assets 0 (289) Impairment of financial assets 4 159 7 709 Net new lending (632) (14 682) Dividend received 0 0

Net cash flow from investing activities (180 825) (135 070)

Financing activities New borrowing 1 226 2 531 Capital increase paid in 0 47 828 Sale/(purchase) of treasury shares (8 799) 19 118 Dividend paid (incl . non-controlling interests) (287 741) (183 150)

Net cash flow from financing activities (303 991) (113 673)

Translation of foreign currency bank deposits (2 868) 5 640

NET CHANGE IN CASH AT BANK ETC. (14 379) 76 522

Cash and cash equivalents 01 .01 515 024 438 503

CASH AND CASH EQUIVALENTS, 31 December 500 645 515 024

In 2018 Norconsult signed a contract with Avinor relating to the design of the new Bodø Airport, which is one of Norway’s largest 66 transport projects. Norconsult will be assisted on the project by subcontractors LPO Arkitekter and Archus Arkitekter.67 Ill.: From the conceptual design for the airport, showing its possible design (produced by Norconsult, Archus and LPO). About Norconsult

Norconsult is Norway’s largest and one of the Nordic region’s leading inter disciplinary consultancy firms, with business activities spanning five continents . We offer services aimed at social planning, engineering design and architecture . Norconsult is engaged in projects in the areas of Buildings, Transport, Energy, Industry, Water, Oil and Gas, Environment, Planning, Architecture, Risk Management and IT . The Group's head office is located in Sandvika, outside Oslo . The company is owned by its employees .