Annual Report | 2017 11 Market areas 2017 3,200 2016 3,050 3 200 2015 2,970 Employees 2014 2,900 2013 2,650 100 90 80 70 93 60 Offices in Norway Offices 50 Offices abroad 40 30 20 10 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 5,000 NOK million 4 624 4,000 Revenues (MNOK) 3,000 2,000 1,000 2012 2013 2014 2015 2016 2017 20 000 Projects 2 Contents A word from the CEO . 4 This is Norconsult . 6 Our business . 7 Corporate governance . 10 Heads for tomorrow . 12 Discipline leadership and knowledge-sharing . .14 Everything we do stands up to public scrutiny . 17 Our business is built upon our people . 19 Community engagement beyond consultancy . 20 Innovation, digitalisation and commercialisation . 22 A smarter way of working . 24 Clients and markets . 28 Summit for Society . 30 Our market areas . 32 Selected projects 2017 . 39 Board of Directors’ report 2017 . 48 Consolidated financial statements . 64 Offices and addresses . 68 3 A word from the CEO Thanks to an impressive effort by our employees in 2017, Norconsult has succeeded in enhancing the company’s competitiveness in a challenging market. Increasing activity levels throughout the year helped take Norconsult to a historic high in 2017. Sales amounted to NOK 4.6 billion, with profit of NOK 371 million. The operating margin was 8.0 per cent. Each year we perform more than station and hospital projects such as recruitment work, surveys carried out 20,000 projects, both small and large, Førde Hospital and the New Drammen by both Karrierebarometeret (Career for our clients . Together with our loyal, Hospital . Recently we also won a Barometer) and Universum show that bold, motivated and committed clients project for the water company Asker og Norconsult is considered one of the and partners, we have enjoyed a high Bærum Vannverk IKS (ABV) for a new best places to work – for both level of activity within all our market water treatment plant in Bærum, as well technology graduates and experienced areas . Full focus on clients and markets, as a design project related to residential engineers . In 2017 the Group took on sound project execution, a high level of development in Bispevika . In Sweden around 300 new employees from both employee satisfaction and a strong we have worked on one of Europe’s of these categories . The Norwegian corporate culture provide the basis for biggest urban development projects, University of Science and Technology our positive development . Norra Djurgårdsstaden (Royal Seaport) (NTNU) is a highly important in Stockholm . In Denmark we have recruitment arena for new graduates, In 2017 we were particularly busy in the worked on the Kastrup Hotel at and in 2017 we once again had the market areas of Transport, Buildings, Copenhagen airport, and in Zambia we opportunity to make our mark at the Energy and Water . Examples of projects have been involved in establishing a UKA cultural festival with our that we worked on in 2017 in Norway new hydroelectric power plant, the recruitment campaign “Heads for include the joint Ringerike Line and E16 Kafue Gorge Lower Hydro Power Tomorrow” . project, Nettplan Stor-Oslo – the grid Project . programme for Oslo and the In addition to organic growth, we surrounding area, a carbon capture Expertise as a competitive advantage bought a number of companies in 2017 facility for Norcem, the Tønsberg-Skien Our vision is that “We create solutions which enabled us to welcome and Drammen-Kobbervikdalen intercity for the most difficult projects”, and we approximately 100 employees into the projects, the E18 Tvedestrand-Arendal therefore also aim to be the most fold . We reinforced our ranks in the highway, the E39 Rogaland Fixed Link attractive employer in the market . disciplines of energy and power (“Rogfast”), Nedre Røssåga power Thanks to excellent long-term transmission in the Nordic market 4 through the acquisition of the ARA LHL hospital and the Førde and Aker and innovative use of gaming Engineering group, and within systems hospitals . Nordic has offices in Oslo, technology in the Ulriken project for development, machine learning and IT Copenhagen and London . The plan is Bane NOR, the state-owned company consultancy through the acquisition of for the transaction to be completed by responsible for the Norwegian national Fundator AS at the end of 2017 . In summer 2018, subject to approval by railway infrastructure . addition, we boosted our capabilities in the Norwegian Competition Authority . architecture with the acquisition of Bright looking future companies including Faaland Arkitekter An industry in rapid flux Despite stiff competition in the market, and Leif Nes Arkitekter in Norway, Technological development in the with our 3,200 employees we are well Skovhus Arkitekter in Denmark and industry, combined with changes in our equipped to deliver further profitable Glantz Arkitekt studio in Sweden . clients’ and partners’ procurement growth in the years ahead . processes and contract types, require 2018: Nordic – Office of Architecture the consultancy sector to develop and Thank you for a good 2017 . We look In April 2018 we signed an agreement adapt the way we work . Innovation, forward to delivering new projects in to acquire 90 5. per cent of Nordic – digitalisation and smart processes are the years to come . Office of Architecture . The company therefore high on Norconsult’s agenda . has around 170 employees with solid We have attracted attention both in expertise and a culture that fits in very Norway and throughout the world for well with our own . The acquisition our ability to harness new technology strengthens both companies’ and digital modelling (BIM) in projects . Per Kristian Jacobsen competitiveness in the Nordic market . For the second consecutive year CEO Nordic will retain its brand . Norconsult Norconsult was a finalist at the AEC and Nordic have collaborated Excellence Awards in Las Vegas . Our previously on major projects such as employees achieved third place in the Gardermoen and Flesland airports, the Infrastructure category for our unique 5 This is Norconsult Countries with permanent offices Countries with projects in 2017 Countries with projects since 1956 Business concept Vision Mission Norconsult ensures the We create solutions We use our expertise for the most to enhance the world quality of clients’ challenging projects . around us infrastructure and building projects by providing value-enhancing consulting expertise 6 Our business Norconsult is Norway’s largest and one of the Nordic region’s leading interdisciplinary consultancy firms, with activities spanning several continents. We offer services in planning, engineering design and architecture. Norconsult is involved in more than has a total of 93 offices in Norway and that work closely together . Local 20,000 projects each year in Buildings, abroad . The headquarters of the Group knowledge of our client and their Transport, Energy, Industry, Water, Oil is located in Sandvika, close to Oslo, projects are key . Together, these and Gas, Environment, Planning, and the company is owned by its attributes give us the capacity and Architecture, Risk Management and IT . employees . expertise to carry out different types of projects of all sizes – anywhere in the Around 2,400 of the company’s 3,200 One of Norconsult’s strengths is our world . employees work in Norway . Norconsult broad resource pool and many offices Employees of the Group 100% Norconsult Holding AS 100% Norconsult AS 100% Norconsult EHF Norconsult A/S Norconsult AB Norconsult Technogarden Iceland Denmark Sweden Informasjonssystemer AS Holding AS 100% 100% 100% 100% 100% Poland Sweden Sweden Asia and Oceania Africa South America Oslo Airport7 We create value for clients and achieve good results by maintaining quality in everything we do, in a safe and sustainable manner. A strong Nordic footprint This strategy is based on the following Business culture Norconsult has a strong Nordic key areas: LiVE Norconsult is our culture platform . footprint . The company leads the Clients and markets: Our approach to leadership, values and field in Norway, and has gradually A stronger focus on clients ethics affects everything we do, from built itself up to become a significant and markets how we collaborate with our colleagues challenger in the Swedish and Danish Work processes: to client dialogue and how we conduct markets . Norconsult also has Smarter work processes our business ethically and profitably . international activities outside the Partnerships: Nordic region, particularly in the Evaluating partnerships as Management system Energy market area . part of market adaptation Our management system, NORMS, Growth: describes processes and procedures Strategy period 2016–2018 Profitable growth in Norway that allows us to work smart, achieve Improving competitiveness is the and abroad compliance and build a quality culture . heading for the strategy period 2016 to Organisational development and LiVE: We create value for clients and achieve 2018 . In order to succeed in a fiercely A better organisation good results by maintaining quality in competitive market, Norconsult has everything we do, in a safe and decided to focus fully on activities that sustainable manner . enhance the company’s competitive- ness for the current strategy period . Timeline 1929 1980 1994 1998 ► Ing. A.B. ► Norconsult ► NorCiv Engineering ► Berdal Strømme AS a Berdal Mozambique Lda. Co. Ltd. Norconsult AS ► Norconsult Management Services (Phil.), Inc. 1939 1964 1989 1997 1999 ► Sivilingeniør ► Norconsult AS ► Berdal Strømme AS ► Norconsult ► Norconsult Elliot Strømme AS (Merger) International AS Informasjonssystemer AS (NoIS) ► Norconsult Laos Co. Ltd. The timeline charts the most important start-ups and acquisitions that have helped to make Norconsult what it is today, including acquisitions and start-ups in new countries completed in 2017. A further 100+ acquisitions of varying sizes made over the last 20 years have also helped to shape the Norconsult of today. 8 Norconsult Group Management 2017. From left: Ola H. Norderhaug, Fride A.