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 Arkitekt­studio 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. Hærem, Egil Gossé, Per Kristian Jacobsen (CEO), Janicke P. Garmann, Christian B. Nilsen and Bård S. Hernes.

Per Kristian Jacobsen President and CEO

Fride A. Hærem Christian B. Nilsen EVP EVP Staff Functions Finance/CFO

Bård S. Hernes Janicke P. Garmann Egil Gossé Ola Norderhaug* EVP EVP EVP EVP Norway/Head Office Norway/Regions Nordic International

*Effective 1 January 2018 the International business area has been restructured and brought within the parent company’s Energy operations .

2007 2009 2012 2017

►► GF Konsult ►► SAL CDS, Mosambik ►► NorPower Sdn ►► Faaland Arkitekter AS

AB, Gothenburg a Norconsult Africa Bhd, Malaysia ►► Leiv Nes Arkitekter AS

Norconsult AB (Pty) Ltd ►► Ara Engineering ehf

►► Kon-Sul AS

►► Brannsafe AS

►► Glantz Arkitektstudio AB

2003 2010 ►► Skovhus Arkitekter

►► Techno Consult AS ►► Norconsult ►► Akustikk-konsult AS

►► Technogarden Peru SAC Engineering Resources AS (TG)

2008 2016

►► Norconsult Danmark A/S ►► Norconsult

►► Norconsult Andina SA, Chile New Zealand Ltd

9 Corporate governance

Norconsult is an interdisciplinary consultancy firm. Our services are geared towards urban and regional planning, engineering design and architecture. The company contributes to a more sustainable society through innovative and solution-oriented consultancy services, and each year the company invests considerable funds in research and development.

Corporate governance are owned by Norconsult AS of the company’s executive Norconsult is wholly owned by its employees, 5 per cent by Norconsult management may not serve on the employees, which is reflected in our AB employees and the remaining shares Board of Directors . In accordance with corporate culture and is a major factor by employees in other subsidiaries . the Norwegian Public Limited Liability in the positivity and drive Norconsult’s Companies Act, the CEO is responsible clients experience . Employee- The company has two share classes (A for day-to-day management of the ownership also makes us a neutral and and B shares) . All shares confer equal Group, and follows guidelines and unbiased advisor and ensures our voting rights, with the exception of instructions issued by the Board . impartiality and legitimacy for both treasury shares . The shares are not freely public and private clients . At the end of tradable and must be sold back to the General meeting 2017 around 2,600 employees owned company when employees leave or The owners exercise the highest shares in their place of work . reach retirement age . All shares are authority in the Norconsult Holding AS traded through the company in line with Group through the general meeting . Norconsult comprises the parent applicable shareholder agreements . The Board shall make it possible for as company Norconsult Holding AS, which many shareholders as possible to owns all the shares in Norconsult AS, Governance participate in the general meeting, and and Norconsult Eiendom AS . No The company has a clear demarcation ensure that the general meeting is an employee owns more than 1 per cent of duties between the Board of effective meeting place between the of the shares . 94 per cent of the shares Directors and management . Members Board and shareholders .

10 Election Committee the Group’s Board and frameworks to as “CEO”) . The Group Board appoints The Election Committee for Norconsult governing the Board’s work are the CEO and determines the CEO’s Holding AS is the Group’s Election described in the companies’ Rules of duties and authority, which are set out in Committee, and consists of four Procedure . a document and provide the framework members . Members of Norconsult AS’ within which the CEO operates . Election Committee shall at all times be The composition of the Board and the same as those of Norconsult terms of office for various roles are The Group Management team and Holding AS’ Election Committee . The described in the company’s Articles of Group roles Election Committee shall propose Association . Norconsult’s Board The CEO determines which Group candidates for election to the Board of comprises three external represent­ roles are represented in the Group Directors by shareholders, as well as atives, three internal members elected Management team . The Group Board Member compensation . The by shareholders and three members Management team is collectively Election Committee proposes elected by employees . The Board may responsible for safeguarding candidates to the Board following establish select committees as it deems ­Norconsult’s interests and ensuring that interviews with the Board, management necessary . During the reporting period the CEO has the best possible basis for and shareholders . the Board had an Equity Committee, an determining strategy and implementing Audit Committee and a Compensation decisions and for the overall manage- The Group’s Board of Directors Committee . ment of the business . The Board of Directors for Norconsult Holding AS is also the Board of Norconsult does not have a corporate Responsibility for functional areas at Directors for the Group (hereafter assembly, as employees are well Norconsult is assigned to defined referred to as “the Board”) . The represented on the Board by the three Group roles established by the CEO . Group’s Board shall comply with employee-elected representatives . The Group roles are responsible for the requirements of the Norwegian ensuring that the line organisation Public Limited Liability Companies Act President and CEO complies with the requirements regarding the management of assets in The General Manager of Norconsult established in the guiding documents Group companies on behalf of the Holding AS is the President and Chief and updating these in accordance with owners . The primary responsibilities of Executive Officer (subsequently referred changes in the function’s risk profile .

11 Lillestrøm cycle parking facility Heads for Tomorrow

Norconsult’s employees are the very foundation of our business . Since their collective­ expertise is the company’s primary competitive advantage,­ ­Norconsult ­works systematically on professional development at all levels . Employees’­ skills need to be managed in the right way, and at Norconsult this management­ is rooted in our strong corporate culture – founded on the principles of honesty and respect for others .

12 13 Discipline leadership and ­knowledge-sharing

Employees and their expertise are the very foundation of Norconsult’s business. Developing both employees’ individual skills and the Group’s collective expertise is central to the management and development of the Group. Norconsult therefore implements structured measures such as internal and external courses, holds professional conferences and runs discipline networks for employees.

Training, staff development and between their members across the up portals on Norconsult’s intranet for experience transfer are integral parts of organisation and between different their particular discipline for exchanging Norconsult’s management system and geographies . At present we have 24 technical information, examples, related compliance measures . Skills discipline networks, in addition to the templates, checklists and news . development is therefore key to the disciplines that are primarily exercised development and implementation of within an organisational unit . The members of a discipline network are the Group’s strategy, through yearly mapped with respect to their expertise, action plans for each unit, each Each discipline has a technical coordina- so that members with relevant skills can company and for the Group as a whole . tor, reporting to a technical director . The be identified across the company’s technical coordinators are the hubs at organisation and regions . The discipline Strong discipline networks aimed at the heart of the networks and drive networks identify elements and levels of sharing knowledge forward the professional environment expertise and evaluate common training Technical discipline leadership is about within Norconsult AS . The quality of requirements and current external managing and improving technical services within Norconsult’s disciplines ­courses on offer . Identifying required expertise . Norconsult AS provides the comply with the requirements of expertise and elements of expertise conditions for professional collabora- relevant legislation and with Norconsult’s within a particular discipline provides a tion, development and sharing through quality targets and policy . The technical basis for continuing professional its internal discipline networks . Coord­ coordinator is therefore responsible for development, at both company and ination of technical disciplines is an continuous updating and improvement employee level . important part of discipline leadership, within their discipline . This includes where the company can demonstrate monitoring new and amended legisla- In 2017 the company worked to its ability to manage through the tion, regulations and standards that establish structures in its new HR system services that it delivers whilst making impact the discipline and thus the to make employees and their expertise continual improvements . company’s services to our clients . and experience visible and searchable Technical coordinators also guarantee across the company, enabling us to offer To ensure technical discipline leader- consistent technical quality in all our the best and most up-to-date teams in ship and development, a number of projects, regardless of where the work is our projects at all times . networks have been established for the done . disciplines Norconsult works in . All Approvals employees are members of the Technical coordinators hold regular Norconsult AS has central approval to networks covering the areas in which discipline seminars to keep their take on responsibility for the highest they provide advice and services . The members up to date and provide classification of project in all relevant purpose of these discipline networks is opportunities for knowledge-sharing . disciplines in accordance with the to ensure the transfer of expertise The discipline networks have each set Norwegian Planning and Building Act .

14 Study grants for employees: “Ever more rapid changes and increased competition are making staff development more important than ever. I’m proud to be employed by a business that sees the value of this,” says Halvor Haugsvold, head of Norconsult’s Mechanical department.

In addition, Norconsult AS is a regis- The Norconsult Academy provides Project managers are offered a tered electrical service provider for all Norconsult’s programme of courses ­programme providing training at various the areas relevant to our disciplines and and training . Offered to all employees, it levels, depending on the types of projects, and has approval from the includes both internal and external projects that the employees are to work Norwegian Insurance Approval Board courses, conferences and other on . Equivalent programmes at different (FG) both for the company and as an development measures . At Norconsult levels are offered to managers with advisor . Norconsult AS is prequalified AS, a number of the courses are responsibility for personnel and eco- through the Achilles supplier registra- mandatory for satisfying the nomic results . In 2017 a total of 344 tion and prequalification schemes ­requirements of roles in line manage- employees completed the induction Utilities Nordics & Central Europe ment, projects and disciplines . The vast course and some 506 participated in the (Utilities NCE, formerly Sellicha), TransQ majority of courses have been devel- project management courses . and Startbank . Norconsult is certified oped internally and are given by our under the Eco-Lighthouse scheme . employees, which means that the Within the discipline networks, annual training activities actively contribute to professional conferences are held to Developing employees’ skills the exchange of expertise and learning strengthen the professional teams and Norconsult facilitates career between course holders and internal collaboration between employ- ­development within markets, projects, participants­ . ees from different offices . disciplines and line management – thereby improving employee expertise Good project management is the key In addition to the internal courses, in the best interests of our clients, the to good solutions and value for the selected Norconsult AS employees can Group and the employees themselves . client, Norconsult and the community participate in a specially tailored course Norconsult’s systematic compe- for our employees and clients in Virtual The desired career and skills tence-building offering is designed to Design and Construction (VDC) . Held ­development path is mapped for each ensure that the company’s employees under the aegis of Stanford University, the employee in an annual performance implement projects using consistent course provides participants with review with their line manager . In 2017, methodology and in accordance with expertise in efficient design – focusing on 93 per cent of employees in Norconsult’s management system value creation, optimised construction ­Scandinavia had a performance review (NORMS), regardless of discipline or and better quality . In 2017 five employees with their line manager . location . completed VDC-certification under the auspices of Stanford University .

15 Career path Disciplines Career path Projects

Project Director

Specialist

Senior Project Manager

Project Manager

Expert

Project Team Member

Career path Line Employee/staff Group Manager Head of Department Director EVP CEO Office Manager Region/Division

Leaders who understand their role participants worked on strategy and e-learning course in ethics and and get things done devoted an entire day to leadership information security . Being a manager at Norconsult means development . having responsibility for maintaining At the end of 2017, 60 per cent of good client relationships, staff develop- Bright minds Norconsult AS employees held a Master ment, financial results and realising the The most important way that skills are of Science or corresponding qualifi­ Group’s strategy . Managers with developed at Norconsult is through the cation, 38 per cent held a Bachelor of responsibility for personnel are key to experience that our employees gain Science qualification or similar and 36 ensuring that individuals’ skills are from projects, and through the sharing of the company’s employees held a developed, so that we can offer the of this experience . PhD . Employees with a higher degree best teams for our projects at all times are not included in the statistics for – in our clients’ best interests . Vital expertise is gained by working on lower level degrees . projects with colleagues in the same or All managers with responsibility for adjoining disciplines . Project managers Norconsult AS facilitates academic personnel participate in the Group’s and discipline leads take care to put development by offering employees annual management development together professional teams that ensure paid study leave and financial support programme “Lederforum” (Leadership that employees’ skills are used and for both further education and course Forum) . The Leadership Forum provides developed optimally, thereby meeting attendance . In 2017, 13 Norconsult AS professional training in business and our clients’ requirements of expertise in employees received financial support leadership development, knowledge individual projects . Employees are given for relevant further education . sharing and networking . During 2017 the opportunity to take part in profes- the Leadership Forum was held on 11 sionally challenging tasks within a In collaboration with the Research occasions, with 211 managers from the secure professional framework, with Council of Norway, employees also Group participating . In 2017 the experienced discipline leads or have the opportunity to complete an company developed a new course in supervisors assuring the quality of what industrial PhD . In this way Norconsult practical management, and as from we deliver . contributes directly to long-term 2018 this is being offered to all new industrial research and to ensuring that managers in Norway . All new employees, regardless of age, employees acquire PhDs and research­- qualifications and previous experience, related work experience within relevant In 2017 the Group held its first Execu- complete our induction course disciplines . In 2017, five Norconsult AS tive Committee (EXECOM) leadership consisting of an e-learning programme employees worked towards an development arena for the Group’s and a two-day classroom-based course . industrial PhD with support from most senior management, where All employees also complete an annual Norconsult .

16 Fløibanen funicular railway

Everything we do stands up to public scrutiny

Norconsult has a strong corporate culture characterised by expert consul­ tancy and ethical conduct. The culture is firmly rooted in the principles of honesty and respect for others. In addition, we work actively to ensure that our employees are firmly aware of our expectations regarding attitudes and to ensure that everyone is well equipped to make sound judgements and choices when faced with ethical dilemmas.

High commitment and job in all the Nordic countries responded to The LiVEing employee survey shows satisfaction the LiVEing employee survey in 2017 . that Norconsult’s whistleblower Norconsult works actively to improve channel is very well established and our working environment and organi­ Among Nordic employees, 76 per cent known among the company’s employ- sation, so that everyone is satisfied and indicate that their commitment to their ees, and that employees feel confident performs well at work . Such measures job is high or very high . Over 90 per that they can report any irregularities . include an annual employee survey – cent of employees say they are satisfied known in 2017 as LiVEing, following a with their job and that they would All Group employees complete an competition to name it . LiVEing charts recommend Norconsult to others as an annual e-learning course in ethics, in the employees’ perception of employer . Ethics, autonomy and which they have to take a stance on ­Norconsult in various areas, and forms support from managers and colleagues ethical dilemmas that are relevant to a basis for developing our business are highlighted as clear strengths of the Norconsult’s activities . All Group further in terms of working working environment at Norconsult . employees sign an annual declaration ­environments, commitment, expertise, stating that they have read and leadership and culture . Ethical conduct and whistleblowing understood and will comply with our Norconsult has set up an independent ethical guidelines . Every year since The employee survey has been carried whistleblower channel where employ- 2014, 100 per cent of the Group’s out in Norway every year since 2013, ees can report censurable conduct and employees have completed the and since 2014 in the rest of the Nordic any breaches of the Group’s ethical e-learning courses in ethics and signed region . A full 83 per cent of employees guidelines . the declaration .

17 The UKA-17 festival, Norwegian University of Science and Technology (NTNU), Trondheim

18 Our business is built upon our people

With a vision that states “We create solutions for the most challenging pro­ jects”,­ it is vital that Norconsult is able to recruit and retain the right ­employees. ­Candidates who take responsibility, show initiative, have sound values and ­produce good results will find innumerable opportunities at Norconsult.

Norconsult is Norway’s largest employer Heads for tomorrow One of Norway’s most attractive in social planning, design and archi­ In 2017, Norconsult developed a new employers tecture . Even so, employer branding is recruitment concept under the banner Each year, Universum and Karriere­ essential if we are to attract potential “Heads for ­Tomorrow”, aimed at barometeret (the Career Barometer) employees . students who want to work on exciting, name Norway’s most attractive future-oriented projects . For the second employers . In 2017 Norconsult retained Employer branding is about making a time Norconsult colla­borated with the its position as the second most company’s unique competitive UKA cultural festival in Trondheim, attractive employer in Norway, and the advantages visible to potential employ- showcasing our most innovative and best in its field among young ees . At Norconsult, these advantages forward-looking employees and ­employees, in Universum’s list of dream include in particular the opportunity to projects . Drones, robots and gamifi­ employers . In addition, Norconsult was work on some of Norway’s most cation attracted students from various among the leading employers for exciting projects and to help build the courses and at varying stages of their ­engineering and technology graduates future . The multitude of opportunities degrees, all wanting to learn more – achieving third place in Karriere­ on offer, combined with the strength of about Norconsult’s plans for the future . barometeret and fourth place in a sound, professional company, are Universum’s rankings . among the reasons why both existing In the course of 2017 Norconsult AS and potential employees find working welcomed more than 300 new at Norconsult attractive . colleagues, more than 100 of whom were new graduates . Growth and Targeted recruitment strategy recruitment are also continuing at a fast Norconsult carries out targeted work on pace in Norconsult’s Scandinavian recruitment and employer branding subsidiaries, with around 160 new through a range of different activities employees in Sweden and Denmark . aimed at both new graduates and more experienced professionals . Throughout 2017 Norconsult has enhanced its presence at relevant educational establishments in the Nordic region and has implemented tailored recruitment campaigns, targeted media and social media employer branding, events and advertising .

19 Community engagement beyond consultancy

Norconsult practises corporate social responsibility through its consultancy services, but the company’s employees are also keen to use their skills to help groups who need it, both in Norway and abroad.

Helene Moen, Frøydis Kvinen and Ida Flåten on assignment in the Philippines.

In line with Norconsult’s strategy for of collaboration with the organisation can guide them or just be someone to corporate social responsibility, the MOT, a Norwegian charity formed to talk to while they are undergoing company is involved in various projects combat youth violence and drug use . treatment or afterwards . within the categories­ of expertise, MOT’s leaders and ambassadors children and young people and local continue to inspire and share their Our 2017 Christmas Present was support bodies . philosophy as part of Norconsult’s awarded to charitable causes which induction course for new employees . were all nominated and voted for by Norconsult AS works in partnership with Norconsult’s employees . The Norwegian Engineers Without Borders (EWB), an Norconsult is also continuing its Cancer Society, the Norwegian Child organisation that provides expertise in partnership with “Share the Dream”, Cancer Society, Doctors Without engineering to Norwegian aid Stabæk Football’s community project . Borders, the Norwegian Refugee ­organisations . Norconsult provides EWB The project encompasses various Council and SOS Children’s Villages with financial support and the partner- measures to make everyday life easier were the five deserving causes that ship gives Norconsult’s employees the for children and young people who are between them received a total of NOK opportunity to participate in international facing a variety of challenges, such as 500,000 in 2017 . aid projects and to attend courses and holding an annual Football Festival . presentations . Together with EWB, Norconsult’s offices around Norway also Norconsult has held various Missing In 2017 Norconsult began working with support a number of local initiatives Maps workshops at which participants Sarkomer, a Norwegian organisation for such as sports teams, summer camps, help to map areas vulnerable to disasters sarcoma patients, their relatives and and local events and competitions for in locations where aid organisations lack survivors, as part of its mentorship children and young people . information that enable them to provide programme . The programme was effective assistance should a disaster established to encourage companies to Denmark and Sweden occur . give support to people who have or Norconsult A/S supported the have had sarcoma, a type of cancer, by “Danmarksindsamlingen”­ fundraiser in In 2017 Norconsult started its sixth year providing one or more mentors who 2017, which involves 12 of Denmark’s

20 Richard Helgø Kringlebotten assisted with water projects in Uganda. largest humanitarian organisations In the Philippines, Norconsult sponsors a ­Norconsult civil engineer, travelled to coming together to help people in the child’s education through the Tapulanga the rural town of Nyenga in Uganda in world’s poorest countries achieve the Foundation, and provides a grant to a July 2017 where he worked on a UN’s Global Goals . home for disabled people through the know­ledge-building project involving a Tahanan Walang Hagdanan (House With children’s home, kindergarten, school In 2017 Norconsult AB signed a two-year No Stairs) Foundation . and health centre . Richard assisted with agreement with Engineers Without the design of water towers and water Borders . Two water engineers were able In the field with Engineers Without pumping systems and proposals for to take part in the first project in Mavuno, Borders (EWB) sanitation solutions, as well as measures Tanzania where they worked on water During 2017 two of our employees to ensure that the available water supply . Norconsult AB also supports travelled on international missions . sources provided water of the best Faktum, Doctors Without Borders and Helene Moen, energy consultant at possible quality . Kringlebotten also the Göteborgsgirot­ cycling school . Norconsult, travelled to the Philippines carried out a feasibility analysis for along with two Master’s students from installations and bio gas facilities in the Outside the Nordic region the Norwegian University of Science and area, which culminated in a report Norconsult supports various social Technology (NTNU), who she mentored containing detailed action plans for projects abroad . This is an important part during the trip . For two weeks they took building new facilities and upgrading of Norconsult’s integration at a local part in field work in Tacloban, where the existing ones . level, as well as being a good way to non-governmental organisation reinforce social welfare provision . In Streetlight runs a centre for street – EWB provides unique expertise that South Africa, Norconsult works on skills children . Their task was to chart the not many other aid organisations have, enhancement with Women in Oil and energy requirements of the buildings but which are absolutely essential in Energy (WOESA), a charity that helps and come up with a proposal for an disaster struck areas . This expertise leads women find education, training and jobs energy solution . In the longer term the to knowledge-sharing and opportunities within the energy sector . In Mozam- plan was also to install solar cells . to implement projects that otherwise bique, Norconsult sponsors a children’s might not have been completed,” says home and a mobile library for schools . Richard Helgø Kringlebotten, a Kringlebotten .

21 Innovation, digitalisation and commercialisation

Norconsult helps its clients by finding solutions for the most challenging projects, through innovation, smarter processes and new technology . With interdisciplinary expertise and close collaboration along the value chain, Norconsult helps deliver projects of better quality more efficiently, and at a lower overall cost .

22 23 Vamma 12, Norway’s biggest run-of-river hydropower station A smarter way of working

If a company is to succeed in commercialising new technology, it needs a ­culture and leadership that facilitates innovation, digitalisation and colla­ boration. People must be allowed to fail, and to learn from their mistakes. And ideally, to do so quickly. In Norconsult’s experience, elements that increase the likelihood of successful commercialisation are an effective ­organisational and innovation culture, bold leadership and employees who are close to their clients and the market.

How can we work smarter and more ­leadership and strategy are the most New requirements from the market effectively, with fewer errors and in a important building blocks of successful Technological development in the way that produces better overall results, innovation and development work . industry, combined with changes in our irrespective of whether we are dealing Norconsult’s business concept, vision clients’ and partners’ purchasing with a big interdisciplinary international and mission, combined with the processes and contract types, require project or a smaller local consultancy company’s culture platform LiVE, the consultancy sector to develop and assignment? provide a firm foundation for successful adapt the way we work . The industry innovation and digitalisation work has already developed a range of new Innovation, digitalisation and smart throughout the company . initiatives such as VDC, including the work processes are high on use of digital design tools and Lean- ­Norconsult’s agenda . Culture, based collaboration methods, and

24 Joint Ringerike Line and E16 project, Hønefoss Station (artist’s impression).

Norconsult uses methods such as ICE Cutting-edge technological projects Examples include the joint Ringerike meetings, BIM design and model-based Norconsult’s emphasis on smarter Line and E16 project and Vamma 12: construction . processes and focus on innovation, new technology and digitalisation have Joint Ringerike Line and E16 project At Norconsult we work to find the been well received by our clients . Close Bane NOR, the state-owned company smartest and most comprehensive collaboration with clients is a character- responsible for the Norwegian national implementation model for every single istic of several of our most innovative railway infrastructure, and the project – the one that adds the most projects . Thanks to our use of imple- ­Norwegian Public Roads Administration value in relation to the goals we have mentation models such as Virtual are working together on the joint set . We need to establish the best Design and Construction (VDC) and Ringerike Line and E16 project – possible conditions for co-creation innovation leadership, Norconsult is ­Norway’s largest joint road and rail between disciplines and roles in our constantly winning new contracts . Such project, and one of the largest transport projects, between the partners collabo- implementation models place great projects in Norway . Up to 250 people rating on the project and between the emphasis on collaboration – in the form have worked together on the project and its external stakeholders . To of simultaneous design in Big Rooms consultancy­ side in the joint venture succeed in this, Norconsult has built up and technology such as BIM, Virtual NAA (Norconsult, Asplan Viak and unique expertise, with dedicated Reality (VR), gaming technology and ­Aas-Jakobsen) . The success of such a resources that are brought in to ensure others . large project depended on close innovation in the collaboration . collaboration and integration both

25 Close collaboration with clients is a characteristic of several of Norconsult’s most innovative projects, accompanied by simultaneous design in Big Rooms and the use of technology such as BIM, Virtual Reality (VR) and gaming technology.

within the team of consultants and with paperless power station project . Såkornfondet facilitates and supports Bane NOR and the Norwegian Public ­Norconsult has used fully integrated BIM Norconsult’s ability to create value in Roads Administration . throughout the project and production new and established markets, and is taking place based on models, not through the development of completely­ BIM is an integral part of this collabora- drawings . new products or services . tion . All the descriptions, requirements, progress/planned phases and costs Award at world’s largest BIM Bleeding Edge have been brought together in a joint ­conference To spearhead further development of user-friendly 3D model . The joint model Norconsult’s ability to leverage new new technology, Norconsult has ensures greater digital collaboration technology and digital work models established a network of colleagues because it makes things easy to share, such as BIM in projects has attracted from different departments, roles and and it can be used to provide direct international attention . For the second areas of responsibility who share a insight into the solutions and communi- consecutive year Norconsult was a passion for technology . Under the cation with all stakeholders . finalist at the AEC Excellence Awards in name Bleeding Edge, the intention is Las Vegas . The company achieved third that the network will help drive The model is also used to produce place in the Infrastructure category for technology and commercialisation in videos and to create realistic visualisa- our unique and innovative use of projects and provide a forum for tions using VR headsets . New gaming gaming technology in the Ulriken sharing expertise and experience . technology makes it possible to project for Bane NOR, the state-owned Members of the network share a experience what it will be like to company responsible for the proactive approach and a desire to navigate through the landscape or to ­Norwegian national railway infra­ push the boundaries of what is move about the station – for employ- structure . currently possible, and are constantly ees, clients and stakeholders alike . seeking out new and better solutions to Såkornfondet the challenges set by our clients . This open way of working has resulted In 2017, Norconsult established in good processes, few surprises and Såkornfondet (seed funding) as an ...and it all pays off solutions with a solid foundation . important new initiative . Designed to Norconsult’s results in recent years stimulate and contribute to developing provide proof that investing in the Vamma 12 innovative and creative business commercialisation of innovation and In the Vamma 12 power station project, opportunities, Såkornfondet takes up new technology is a profitable business . Norconsult and our client E-Co (formerly ideas at an early stage and helps solidify Norconsult’s principle is that it pays to Hafslund Produksjon) collaborated and assess their potential for further work smarter – for clients, partners and closely to produce ground-breaking development and commercialisation . for Norconsult itself . solutions involving digitalisation and All Norconsult employees are invited to innovation . Vamma 12 is Norway’s first contribute new business ideas .

26 27 Clients and markets

Building on our broad experience, interdisciplinary expertise and corpo- rate culture, Norconsult helps clients to create value and contribute to a sustainable society . In the following pages you can read more about the Summit for Society – which was held for the first time in 2017 – and about our market areas and selected projects in 2017 .

28 29 Sortland Hotel Summit for Society

Collaboration and efficiency were on the agenda when Norconsult invited clients, competitors, partners, students and internal employees to the first Summit for Society in Norway.

The Summit for Society is an important enhance skills and competitiveness . Dokk Holm and the city of forum for discussing the challenges the The results were discussed in a debate ­Helsingborg’s “Head of Future”, industry will face in the years ahead . In among leading individuals including Liv Micco Grønholm . Norconsult we strive to raise awareness Kari Skudal Hansteen (CEO of RIF), of the changes that must be made if we Morten Grongstad (CEO of The programme also included a are to succeed in building an efficient AF gruppen), Paul Chaffey (State number of speakers from Norconsult . Norway for the future . To achieve this it Secretary to the Minister for Local is vital to have an open debate with Government and Modernisation), Egil Summit for Society 2018 representatives along the entire value Skavang (CEO of the Association of Norconsult is keen to establish an chain and from both the public and the Consulting Architects in Norway) and attractive forum for all those who want private sectors . Per Kristian Jacobsen (CEO of to contribute to building an efficient Norconsult)­ . Norway for the future . The theme for Business leader debate on 2018 is “The Way to the Future” and the streamlining and planning An industry in flux Summit for Society will look at what we ­construction processes Matters discussed at the conference will live off in the future and how we Ahead of the Summit for Society, suggest an industry in flux, with factors will live, shedding light on the issues Norconsult and the Association of such as increased digitalisation, new from a political perspective, from the Consulting Engineers, Norway (RIF) sent expertise and close collaboration viewpoint of the sector itself, and not out a questionnaire to 175 senior between different players . A packed least from the younger generation’s managers at RIF’s member companies auditorium consisting of clients, perspective . The ­Summit for Society and to 50 people representing young competitors, partners, students and 2018 will be held on 25 September . consultants . The aim was to chart how Norconsult employees made it clear the industry can streamline the planning that this was an important topic for and building process in Norway . The many people . The speakers included survey revealed that procurement former prime minister Kåre Willoch, expertise is seen as being particularly Bane NOR’s Morten Klokkersveen, the important in the future . Other aspects head of Statsbygg’s Digibygg project highlighted in the survey were the need Jan Myhre, State Secretary Paul for financial predictability, implementa- Chaffey, Ingrid Dahl Hovland of Nye tion models that facilitate effective Veier, the Mayor of Bærum Lisbeth collaboration, and a supplier strategy to Hammer Krog, political scientist Erling

30 31 Our market areas

Norconsult has organised its services into 11 different market areas: ­Transport, Buildings, Energy, Water, Industry, Oil and Gas, Environment, Risk Management, Planning, Architecture and IT . We engage in planning­ and consultancy in all phases of a project, from concept development and high-level plans to project design and operational support .

32 E18 Tvedestrand–Arendal

Transport Buildings

Norconsult has wide-ranging interdisciplinary expertise in all Norconsult’s expertise and references encompass all the ­transport-related disciplines and has many years’ ­experience disciplines involved in the development, planning and design in the planning and design of transportation 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 areas . We have consultancy expertise from walkways and cycle paths to the largest and most to meet every need, from the concept and outline phase to complex transport projects relating to motorways, railways, detailed design in the construction phase, and on into oper- tramways, harbours, airports and tunnels . ational and maintenance phases – for both new-builds and renovation projects . Our Buildings business area has strong Our staff has solid professional backgrounds, with ­varied interdisciplinary communities at most of Norconsult’s local theoretical and practical expertise and experience from offices, enabling us to service all of Scandinavia with our local ­planning and design of projects for various types of expertise and capacity . ­construction . This allows our interdisciplinary team of ­transport experts to solve challenges and deliver effective With continual development we adapt to changes and needs solutions for the ­transport sector . in the market and among our clients . We have developed spe- cialist 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 the use and development of design processes and planning methodology . Important elements of this work include digitalisation, Lean techniques and collaboration with simultaneous design – key tools being VDC (Virtual Design and Construction) and fully digital BIM (Building Information Modelling) .

33 Triangulum Stavanger, energy plant

Energy Water

For more than 80 years, Norconsult has helped to imple- Norconsult’s expertise guarantees a secure water supply and ment renewable energy construction and supply across the provides environmentally friendly and efficient wastewater entire globe . We have participated in the design, main­ solutions that take account of future climate changes and tenance and monitoring of a large percentage of Norwegian security requirements . Water is a vital resource that is essen- hydropower and district heating production, including power tial for life and development . Water resources therefore have systems and associated transmission grid, and have devel- to be exploited in a sustainable manner and safe­guarded for oped our specialist services for the benefit of society and future generations . Norconsult offers the largest consultancy our clients . Our interdisciplinary expertise helps us to gain a resource pool for water and sewage services in Norway . We thorough and extensive understanding of the entire power are a specialist provider of consultancy services covering all system, all the way from production via the transmission aspects of clean water and sewage, from assessments of network to the consumer . water sources and water treatment to wastewater treatment and drainage systems, all of high quality and with a long Our services cover everything from early-phase consult­ lifetime . ancy and feasibility studies through procurement assistance, detailed design, environmental assessments, construction In urban areas, we have extensive experience of coord­ management, system testing and commissioning to services inating complex technical infrastructures such as water in the ­operational phases including environmental moni- and sewage treatment plants, cable management systems, toring, measurements, analyses and re-assessments . We district heating/cooling and waste extraction . We also attach great importance to securing and upgrading existing have specialist expertise in blue-green infrastructure such facilities­ . as local stormwater management, stream openings and ­nature-based purification of surface water .

34 Kårstø

Industry Oil and gas

For more than 80 years, Norconsult has played a key role Norconsult is an independent expert supplier of engineering in the realisation of major investments and construction services to the oil and gas industry . Our services include ­projects for a range of industrial companies, both in Norway both offshore and onshore work in all project phases . and abroad . In recent decades, sustainability has been a common theme in our industrial projects, in the form Oil and gas projects demand a high degree of inter­ of emission reductions and better resource and energy disciplinary collaboration, significant capacity and relevant utilisation­ . experience in the implementation of complex projects ­involving a large number of parties and tight deadlines . Over our many years in the sector, we have built-up ­Design work focusing on HSE, efficient planning and wide-ranging knowledge of industrial processes, logistics safe construction lie in the core of successful projects . and functional requirements . This makes us a highly effective ­Norconsult’s employees have extensive experience from interdisciplinary partner for industrial applications within all all phases of large complex projects – from the earliest types of industry . feasibility studies, through planning, design, tender work and construction management to operations and maintenance . A combination of solid theoretical expertise and more than eight decades of practical experience enables us to deliver a Norconsult has developed its own expertise centre for wide range of consultancy and design services for a variety production and storage of liquefied natural gas and bio gas of industrial enterprises . We participate in all phases of a (LNG/LBG) . project, from concept development to operations .

35 The Oslo Tunnel

Environment Risk management

Norconsult has one of Norway’s largest interdisciplinary Norconsult is the largest Norwegian company ­covering all ­consulting communities in the area of the environment, the requirements of risk management studies . Our engin­ climate and sustainability . eering environment merges interdisciplinary knowledge and specialised experience from evaluating safety and managing We are constantly finding more knowledgeable clients who risks in a wide rang of projects for public and private clients . have clear wishes and expectations of both the finalised With specialized knowledge and experience in security and project and the consultant’s expertise . Our projects are active risk management we improve projects within all of wide-ranging, which demands consultants who are able to our market areas . design in detail while still seeing the big picture . Our job is to understand and meet our clients’ expectations and needs at The analysis of risk, vulnerability and appropriate contin­ the right level . gency measures are demanding interdisciplinary tasks . An ­independent assessment of adverse events, threats and Our consultants work closely through our ­nationwide net- vulnerabilities in a business is important to reduce risks . work, allowing us to exploit interdisciplinary synergies and Norconsult can help to reduce risk by establishing and spot opportunities, establish interfaces, elaborate viable and developing a robust safety culture, by creating management efficient solutions, and highlight these impacts in the projects . systems and cultivating expertise, by designing preventive Creative processes and collaboration with our clients are a measures and through contingency planning . natural part of the way we work (co-creation) . Through this and our internal programme for research and development, we find new ways of creating tomorrow’s environmental friendly solutions . We offer customised products and cost-­ effective solutions that comply with regulatory requirements .

36 Urban development, Teleplanbyen

Planning Architecture

Norconsult offers one of Norway’s leading centres of exper- Norconsult’s conscious focus on architecture is based tise within regional planning and urban development . We on a conviction that the future lies in integrated services . employ social scientists, geographers, architects, landscape In a short time we have become one of Norway’s largest architects and engineers, all of whom are driven by a desire resource pools, and our geographical spread and large port- to create flourishing and vibrant towns and cities . We are folio make us an ­attractive partner to work with . passionate about sustainable development in a constantly changing society . We see the architecture of tomorrow as being a compos- ite, complex business . With expertise within architecture, We analyse, understand and shape physical environments . landscaping, interior design, lighting and urban planning, we Using smart, future-oriented and sustainable solutions, we are shaping the world we live in . We place great importance contribute to national, regional and local planning . Our plan- in an interdisciplinary approach where we assemble the ners focus on planning and mobility in a context, with the aim competence needed for each project . of developing transport solutions and living environments that meet future needs . The individual person’s needs are essential In solving challenging projects with integrated teams of throughout all of our project design . architects and engineers we plan ahead by using new and innovative methods, particularly new technology and greater We combine strong expertise with creativity and enthusiasm, focus on smooth processes . This full range of integrated facilitating inclusive work processes, dialogue and interaction . services and expertise makes us a strong competitor in all Good communication and involvement of all stakeholders are phases of project development . We are proud to be spear- essential if both processes and end deliveries are to be of high heading these developments, and our clients will notice our quality . We place great importance on presentation and visual continued investments in this area . and written communication . Our interdisciplinary capabilities and geographic reach allow us to be flexible with regard to type of project, size and geographic location .

37 IT

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 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 Geo- graphic Information Systems (GIS/NIS), property rates, waste management and customer data management for local authorities, as well as property and building management systems for operations, administration and maintenance (OAM) . The company also offers market-leading solutions within project management, digital tender processes, project costing, Life Cycle Cost calculation, structural engineering and BIM (Building Information Modelling) .

Our solutions are brought together under a common brand, ISY, which symbolises user-friendly knowledge systems, and have more than 30,000 users in the Nordic region .

38 Selected projects 2017

Every year, Norconsult’s employees are involved in more than 20,000 ­projects within our market areas . We create solutions for the most ­challenging projects, but also for small, local projects . Examples of large projects that we worked on in 2017 include the world’s longest and deep- est subsea tunnel in Norway, one of Europe’s largest urban development projects in Stockholm, and a hydropower plant in southern Africa .

Royal Christiania Hotel39 E39 Rogfast (Rogaland Fixed Link): Designing the world’s longest

and deepest subsea tunnel What: Subsea tunnel with associated overground works

Location: At around 27 kilometres long, the E39 Rogaland Fixed Link – known in Norwegian as Rogaland, Norway Rogfast – will be the world’s longest and deepest subsea road tunnel. The project must also meet radical new environmental targets associated with reducing greenhouse gas Client: emissions, energy consumption and negative environmental impact. Norwegian Public Roads Ad- ministration, Western Region The Rogfast project will be the world’s involve ventilation and situations such as longest and deepest (-392 metres) subsea accidents and fire . Inside the tunnel, an art Contract period: road tunnel . In addition, the tunnel will have project is to prevent monotony, reduce 2014–2026 the world’s deepest road junction – 260 anxiety, cut perceived driving time and metres below sea level . Norconsult is enhance navigation ability . The decoration Norconsult’s deliverables: contributing within more than 20 will also help “open up” the tunnel space . Pre-feasibility study, detailed ­disciplines, and all design and data as design and monitoring of 3D data/BIM . Great socioeconomic benefit construction­ deadlines Rogfast is the first ferry replacement Sustainable road projects project in the government’s ambitious plan Norconsult’s disciplines The project will set new standards of for a ferry-free E39 between Kristiansand include: sustainability in road projects and has and Trondheim . Ferry services between Acoustics/noise, analyses and special designs, area plan- attracted great attention . Norconsult has Mortavika and Arsvågen, and between ning and planning processes, coordinated major environmental initiatives Mekjarvik and Kvitsøy in the Bokna Fjord, architecture, fire safety, CFD under the name Rogfast Plus, identifying are to be replaced by a twin-tube tunnel and fluid mechanics, electrical possible measures to reduce the project’s between Harestad and Arsvågen with a 3 7. engineering, geotechnical engi- overall energy consumption and green- kilometre long spur to Kvitsøy . Construc- neering, hydrogeology/ground- house gas emissions from materials used . tion began at the end of 2017 and the water, innovation­ management, tunnel is scheduled to open to traffic in ­climate, structural engineering, Artistically decorated and safer tunnels 2025/2026 . When completed it will cut landscape architecture, air, mar­ The tunnel’s groundbreaking length, deep travel time between Stavanger and Bergen ine environment, environmental subsea road junction and complex geology by around 40 minutes . The net socio­ monitoring and consultancy, has challenged existing solutions and economic benefit of the project has been tunnels and mountain construc- building standards . The greatest challenges estimated at around NOK 13 6. billion . tions, water and sewage, roads

40 E6 Helgeland South: Helping to improve traffic safety on the Helgeland coast

To reduce fatalities and serious injuries in traffic, and improve accessibility both within What: Helgeland and between Helgeland and other regions, the E6 Helgeland South is to be E6 Helgeland South – significantly remodelled. Norconsult is responsible for project design. Design and Build

Location: The E6 Helgeland South road section is Norconsult’s deliverables consist of design Nordland, Norway currently of poor standard . The road is for approx . 29 kilometres of the new E6 narrow with several bottlenecks, which with a speed limit of 90 km/h . In addition, Client: leads to poor road safety, greatly reduced Norconsult is designing six bridges, a Skanska Norge AS driving speeds and inconvenience for the number of footbridges and culverts, and Contract period: road’s neighbours . The Norwegian Public three tunnels . Since ground conditions are 2015–2020 Roads Administration has decided to partly difficult – containing, for example, upgrade this section of road with Skanska quick clay – Norconsult is also designing Norconsult’s deliverables: as the design-and-build contractor . geotechnical measures to ensure the Design in the tender phase, stability of the road . modifications, detailed Design involving all disciplines design for design-and-build At an early stage Skanska began collaborat- Close collaboration adds value for client contract and monitoring of ing with Norconsult to ensure sufficient The success of the project is partly owed construction­ deadlines design expertise in the project . Norconsult to the close interdisciplinary collaboration has undertaken responsibility for design between Skanska and Norconsult . The Norconsult’s disciplines involving all disciplines, and has been parallel construction phase and design also include: involved all the way from the tender and allows for more rational construction and Area planning, electrical dialogue phase . The E6 Helgeland South maintenance of the road . This adds value engineering, geotechnical project covers a total of seven parcels for Skanska, which will be responsible for engineering, hydrology, spread along a section of road more than operation and maintenance of the road for ­engineering geology, design, 130 kilometres in length, from the Nord-­ 15 years . The new E6 Helgeland South is environment, Safety, Health Trøndelag/Nordland border to the south scheduled to open in 2020 . and Working Environment side of the Korgfjellet mountain . The (SHW), tunnels, water and Kappskarmo-Brattåsen and Brattåsen-Lien ­sewage, hydrology, roads sections are not part of the project .

41 The HUB, formerly known as Christiania Hotel: Designing Norway’s largest hotel, in the heart of Oslo

When the doors of the former Royal Christiania Hotel are reopened in 2019, guests will What: enter Norway's largest hotel – Clarion Hotel The Hub. The hotel is being remodelled and The HUB – remodelling and refurbished to the BREEAM standard Very Good. refurbishment of the former Royal Christiania Hotel Clarion Hotel The Hub will be a completely good solutions for a structure built at refurbished building with 810 guest rooms, various times from the 1930s to the Location: meeting facilities, restaurants and a present, with low ceilings in some areas Oslo, Norway conference room with a capacity for more and tight spaces for technical installations . than 1,000 people . Norconsult was Client: contracted to provide expertise in a number High environmental standards Betonmast Oslo AS of disciplines during the pre-feasibility­ study, High energy and environmental standards Contract period: tender phase and detailed design . have been set for the hotel – both in 2016–2019 regards to estimatated and actual A complex design in a busy city centre ­consumption . This leads to energy-efficient Norconsult’s deliverables: The listed part of the building is being technical systems and solutions that Pre-feasibility study, tender refurbished, while the high-rise building reduce energy consumption . The aim is for phase and detailed design between Skippergata and Nygata is being the hotel to achieve BREEAM-NOR demolished to ground level and rebuilt to a certification in the class Very Good . This Norconsult’s disciplines full 16 storeys high . The demolition of such certification involves elements like low include: a large building in one of Oslo’s busiest energy requirements, energy-efficient BREEAM, building physics, areas demands a high degree of safety . lighting and lifts, energy metering, structural engineering, HVAC ­environmentally friendly materials, The new building must meet regulations consideration of the environment during and standards, including earthquake the construction phase, facilities for resistance – which has necessitated cyclists and ecology-counscious green extensive reinforcement measures at areas on the roof . Norconsult coordinated ground level and in the existing basement the BREEAM work in the pre-feasibility level . One significant challenge in the study and in the tender phase . refurbishment project has been to find

42 Norcem Brevik: Leading a green transition in the cement industry

Norconsult is delivering structural engineering services for a full-scale carbon capture What: facility for Norcem. If the facility is realised it will be the first of its kind in the cement Full-scale carbon capture industry globally, with an estimated annual capacity of around 400,000 tonnes of CO2. ­facility at Norcem cement factory The cement industry accounts for around Designing a full-scale carbon capture five percent of the world’s CO2 emissions, facility Location: with Norcem’s cement factory in Brevik Norconsult’s work includes designing and Telemark, Norway being the largest individual source of CO2 estimating cost of all the structural emissions in mainland Norway . Each year engineering work in Norcem’s concept Client: the factory discharges 800,000 tonnes of study and pre-feasibility study . If a detailed Aker Solutions and Norcem Heidelberg Cement CO2 . study is carried out, Norconsult will also design and estimate cost for a solution that Contract period: Cement products with a lower carbon secures the integration of a full-scale 2013–2018 (with possible footprint carbon capture facility in the existing ­extension until 2022–2023) Heidelberg Cement Group, which owns factory while the factory maintains full Norcem Brevik, aims to halve the factory’s production of cement during the con­ Norconsult’s deliverables: CO2 emissions and make a contribution to struction phase . Norconsult’s delivery also Concept study, feasibility greener cement production by establishing included preparing and delivering all data study, concept study and a full-scale Carbon Capture & Storage (CCS) in BIM/3D models, for use by all the pre-­ feasibility­ study facility, which will capture 400,000 tonnes partners in the project . of CO2 annually directly from gases Norconsult’s disciplines discharged in production . Such a facility will Leading in carbon capture include: be the first of its kind in the cement industry Norway is a leader within research into the Acoustics, architecture, fire anywhere in the world . The findings of a capture, storage and transport of CO2, and safety, geotechnical engin­ concept study are being reviewed by the gives major subsidies to research and eering, ports, HVAC, design, authorities during spring 2018 . A decision development in this area . Virtually the environment (land and sea), on whether to invest in taking the project whole of the Norcem Brevik project is refurbishment, water and further will be made by summer 2018 . financed by central government . sewage,­ roads

43 Aabenraa Psychiatric Hospital, Denmark: Ergonomic lighting for the Danish psychiatric sector

The use of light is central to the design of the new psychiatric hospital in Aabenraa. Patient What: health will benefit from surroundings that imitate nature, with lighting that works in line Construction of new with the body’s natural circadian rhythms. psychiatric­ hospital

The 20,000 square metre psychiatric Energy-efficient solutions Location: hospital in Aabenraa in southern Jutland Combining energy optimisation and Aabenraa, Denmark has a total of 115 beds for children, young circadian lighting is something completely people and adults . The building consists of new . It makes great demands on how to Client: two fan-shaped buildings with large glass control lighting and knowledge of how Region of Southern Denmark facades, providing an open outlook to light affects people . Ergonomic circadian Contract period: green spaces, the sky and the horizon . The lighting is an energy-efficient solution and 2012–2016/2017 generous amounts of daylight brought into much of the energy consumption is the buildings create a calm, positive covered by a 1,500 square metre solar Norconsult’s deliverables: environment in the hospital . panels that was built in conjunction with Engineering consultancy the hospital . Circadian lighting to match the body’s Norconsult’s disciplines own circadian rhythm 3D modelling provides better control include: Norconsult’s contributions included the Norconsult used 3D modelling and BIM in Construction management, design of the interior lighting at the the project to ensure interdisciplinary electrical and low voltage hospital . Ergonomic circadian lighting control . The hospital won the Design & systems, technical supervision, supports the body’s natural circadian Health International Academy Award for its design, ventilation, HVAC rhythm, with the light changing according architecture, in the Mental Health Project to the time of day and what the room is to category . be used for . During the day, strong light simulates daylight . At night, it changes to a The project was also awarded Aabenraa specially developed night-time lighting that Municipality’s Architecture Prize in 2016 . is both calming and highly energy-saving .

44 Norra Djurgårdsstaden in Stockholm (Stockholm Royal Seaport): Designing streets for one of Europe’s largest urban development projects

Norconsult has been commissioned to design streets in one of Europe’s largest urban What: development projects, Norra Djurgårdsstaden in Stockholm (Stockholm Royal Seaport). The Street design for one of new development will create 12,000 new homes and 35,000 new jobs. ­Europe’s largest urban development­ projects Norra Djurgårdsstaden is located just focusing strongly on environment and north-east of Stockholm city centre . The aim sustainability . The homes are to be Location: for the project is to create one of Europe’s designed to use only half as much energy Stockholm, Sweden most attractive and modern places to live . as the average for Stockholm, and at least 30 per cent of the energy consumed is to Client: Putting pedestrians first be produced locally . All the buildings are City Development Administration,­ Stockholm The area that Norconsult is designing in connected to an underground waste Norra Djurgårdsstaden extends over 3 5. extraction system with separate recepta- Contract period: kilometres from Lidingöbron in the north to cles for different types of waste . Food 2017–present Loudden in the south . The district is being waste is converted into compost . Empha- developed with active urban lifestyles in sis is being placed on green solutions, such Norconsult’s deliverables: mind, including sports and cultural facilities, as rainwater collection and reuse, bug Prepare planning work at an outdoor swimming pool, parks and hotels, roof gardens and vertical gardens . all levels, from concept squares . Footpaths, cycle paths and trams develop­ ment­ and general are an important part of the plan . Car traffic Digital drawings in huge long-term project plans to design of physical will be limited . The area has stunning Norconsult is using 3D when designing solutions location next to the Stockholm archipelago, streets in the new urban district . This makes and a pedestrian promenade is to be built it easier to visualise the challenges and Norconsult’s disciplines along the water’s edge . A tram service will opportunities of the project, and to see the include: link the area to central Stockholm, which direct consequences of suggested changes . Street design, roads can also be reached by bike in ten minutes . The huge Norra Djurgårdsstaden develop- ment project will continue for many years A sustainable district to come . The district is scheduled for Urban planning in Norra Djurgårdsstaden is completion around 2030 .

45 Pre-feasibility study for self-driving vehicles in Sweden: Using self-driving vehicles to improve mobility

In a recent Swedish study, Norconsult and collaborators investigated how the use of ­self- What: driving cars and buses can increase mobility for people with disabilities. Pre-feasibility study into self-driving vehicles for increased­ mobility People with disabilities experience many Astando, the research institute RISE challenges when using today’s public Viktoria, Region Västra Götaland, public Location: transport systems . Everything from physical transport company Västtrafik AB and Volvo Gothenburg, Sweden barriers to navigation and lack of station Cars . The study involved a user group announcements can contribute to made up of people with disabilities . Client: restricting their mobility, with society Drive Sweden (Vinnova, ­Swedish Energy Agency, incurring significant social costs as a result . Road safety first Formas) After charting the challenges faced by the Planning universal design user group with today’s transport systems, Contract period: A pre-feasibility study financed by the the team investigated the potential benefits 2016–2017 strategic innovation programme Drive of self-driving vehicles for the group’s Sweden, was carried out with the aim of mobility . The team thought that such Norconsult’s deliverables: developing tools which ensure universal vehicles could increase their mobility, Research study design during the planning phase of future provided careful consideration was given transport systems . The study particularly­ to road safety aspects – in which case, Norconsult’s disciplines investigated the extent to which self-driving self-driving cars and buses could add value include: cars and buses can help increase mobility through greater predictability, shorter travel Urban planning, innovation for people with disabilities, making it easier times, better accessibility, user-­friendliness, management, IT/digitalisation, for them to get from A to B . comfort and flexibility . accessibility, road and rail

The project team responsible for the study The study’s findings will make it easier to has expertise in urban planning, mobility, plan and organise future towns and digitalisation and innovation management, transport solutions for a population with and consists of Norconsult AB, Norconsult varying needs .

46 Kafue Gorge Lower Hydro Power Project: Helping to solve Zambia’s power challenge

The Kafue Gorge Lower Hydropower Project is Zambia’s biggest investment in expanding What: its power infrastructure for over 50 years. Norconsult is owner’s engineer in the areas of Project and construction project management, design review and construction management. ­management for a new hydropower­ plant Zambia’s state-owned power company powerhouse . Norconsult’s extensive ZESCO Limited (ZESCO) is carrying out a experience in the design and construction Location: nationwide programme to increase power of large hydropower projects has been Zambia generation and transmission capacity in institutionalised and systematised in the Zambia . Because of this, the government Norconsult Construction Management Client: asked ZESCO to develop the Kafue Gorge System (NCOMS), which helps ensure the ZESCO Limited Lower Hydropower Station through an SPV quality of project implementation . Contract period: called Kafue Gorge Lower Power Develop- 2015–2020 ment Corporation Ltd (KGL) . The hydro- An integrated team power plant is being built in the lower part Norconsult and KGL have formed an Norconsult’s deliverables: of the Kafue River, a tributary of the integrated team to ensure the best possible Project management, ­design Zambezi in southern Africa . The project is project implementation and to ensure review and construction situated in a natural gorge, thereby transfer of knowledge for future hydro- management­ reducing its impact on nature . On comple- power projects in Zambia . tion in 2020, the plant will have an installed Norconsult’s disciplines capacity of 750 MW and will help solve the Norconsult’s experts work closely with include: ­country’s power challenges . KGL’s team, providing expertise in design Construction (dam, headrace and staffing the project’s core construction and powerhouse), electrical Quality of implementation management team in Zambia . This engineering, geology, HSE, Norconsult is assisting KGL with ensuring expertise includes contract management, quality assurance, mechanical that the construction phase is executed monitoring the work on the dam, tunnels engineering safely according to quality requirements and powerhouse (including electro­ and international standards . The plant will mechanical equipment), HSE and quality consist of a 140 metre high RCC dam, a 4 4. management . kilometre headrace tunnel and a surface

47 Board of Directors’ report 2017

Despite fierce competition in the market, the Group’s sales continued to grow in 2017 and the Board is satisfied that the company’s operating profit and operating margin are improving compared with previous years . The growth strategy ­prevails and the company will continue to focus on profitable growth, adding increased value for clients through a thorough understanding of the client, focus on smart processes and strong partnerships .

48 49 OT Olsensgt, Mo i Rana Norconsult’s Board of Directors– , from left: Ole Fossen, Harald Trosvik, Mari Thjømøe, Roar Engeland, Henning Vellene, Nils Morten Huseby, Idunn Helen Kirkreit, Olaf Bøckmann and Vegard Jacobsen.

Introduction

Norconsult is Norway’s largest, and one of the Nordic region’s leading, interdisci- plinary consultancy firms within regional planning, project design and architecture. The company is an industry leader in Norway and a prominent player in selected international markets.

Norconsult’s vision is that we create through pre-feasibility studies and the these markets from Norway going solutions for the most challenging preparation of specifications and tender forward, rather than having a permanent projects . We achieve through the depth documents – including operating and local presence . and breadth of our expertise and experi- maintenance processes – to project ence, and by winning attractive management and quality assurance . The Group’s sales continued to grow in assignments with challenges that 2017, and the Board of Directors is require innovation and new ways of At the end of 2017, the Group employed­ satisfied that the company is improving thinking . around 3,200 people . The headquarters both its operating result and its of the Group is located in Sandvika, operating margin compared with Norconsult enhances our surroundings close to Oslo . Norconsult has a strong previous years, despite stiff competition through projects in the areas of local presence in its main strategic in the market . The growth strategy Buildings, Transport, Energy, Water, markets with established offices in 93 remains and the company will continue Industry, Environment, Oil and Gas, Risk different locations, 54 of which are in to focus on profitable growth, by Management, Architecture, Planning, IT Norway, with the remainder­ in other adding increased value for clients and Staffing . Each year, the Group countries in northern Europe (Sweden, through a thorough understanding of undertakes more than 20,000 projects Denmark, Iceland and Poland), Africa their needs, as well as a focus on smart of all sizes for public- and private-sector (South Africa and Mozambique), and Asia processes and strong partnerships . clients in Norway and abroad . Services Oceania (Malaysia, the Philippines and include planning, design and follow-up New Zealand) . During 2017 the compa- Business organisation in various project phases, from archi- ny changed its strategy for its South Norconsult comprises the parent tects’ drawings and statements of need American operations and will cover company Norconsult Holding AS, which

50 Board of Directors’ report 2017

Our business Sales

Nordic region 23 %

Head Office 39% International 4,624 4 % MNOK

Regions Norway 34%

86% Consultancy 8% Staffing 6% IT

owns all the shares in Norconsult AS, the company expanded into Iceland consultancy within transmission, and Norconsult Eiendom AS . Norconsult and Poland through an acquisition . Norconsult now also has a local Holding AS is entirely owned by the presence in Iceland and Poland, in Group’s employees . In 2017 the Group’s operations were addition to acquiring several highly organised into the business areas Head qualified consultants for our office in The Group performs most of its Office, Regions Norway, Nordics Sandvika . interdisciplinary consultancy activities (previously referred to as Scandinavia) through Norconsult AS and its non-­ and International . To adapt to the market Norconsult continued to enhance its Norwegian subsidiaries . In addition, the situation and enhance the synergies in position as one of Norway’s and Group provides IT solutions for project the Group’s energy-related operations, Scandinavia’s biggest architectual management, infrastructure and the international subsidiaries outside practices, including the acquisition of property through the wholly owned Europe were reorganised and brought Faaland Arkitekter AS in Bergen and Leiv subsidiary Norconsult Informasjons­ within the parent company’s Energy Nes Arkitekter AS in Stavanger, as well as systemer AS (NoIS), while Technogarden operations with effect from 2018 . As a Glantz Arkitekter and Skovhus Architects specialises in recruitment and staffing for result, the International business area in Sweden and Denmark respectively . engineering, project management and was discontinued and its operations IT in Norway and Sweden . were transferred into the Head Office In 2017 the Norconsult Group delivered business area . The international more than 20,000 projects of all sizes As of 31 December 2017 Norconsult subsidiaries primarily provide services for public- and private-sector clients . The Eiendom AS (NO Eie) owned the within energy-related consultancy, with company’s activities contribute to a property Vestfjordgaten 4 in Sandvika, the main focus on hydroelectric power more sustainable society by means of where Norconsult AS is the sole tenant . and power transmission . innovative and solution-oriented This company has no other operations . consultancy services . In choosing On 1 February 2018 Norconsult Holding Norconsult continued to develop its solutions, Norconsult gives careful AS sold all the shares in the company cutting-edge expertise, delivery capacity consideration to the more vulnerable NO Eie to the property management and geographical presence in 2017 areas of society and offers significant company Oslo Areal AS, and entered through strategic company acquisitions . expertise in environmental issues, safety, into a long-term lease which expires in In Norway the company Deltatek AS, a risk management and contingency 2030 . The sale was motivated by a technical consultancy in the Buildings planning . strategic decision to streamline opera- market area, was taken over at the tions and release capital that can be beginning of 2017, and the companies Activity levels were high in 2017 and the reinvested in the core business . BrannSafe and Akustikk-konsult have company was involved in many exciting added further breadth within this market projects . Examples of projects in Norway Norconsult is the largest interdisciplin- area . The acquisition of Kon-Sul AS include the Tønsberg-Skien and ary consultancy in Norway, and also enhanced Norconsult’s interdisciplinary Drammen-Kobbervikdalen intercity has a significant and growing presence capacity in Haugalandet and Ryfylke . projects, the joint Ringeriksbanen and in Sweden and Denmark . During 2017 With the acquisition of ARA, a specialist E16 project, E18 Tvedestrand-Arendal,

51 E39 Rogfast, Nettplan Stor-Oslo (the grid the previous year, and above the average million), coming in at NOK 1,575 million . programme for Oslo and the surround- for the past five years . The Technical Systems division reported ing area), a carbon capture facility for the greatest relative growth in both sales Norcem, Nedre Røssåga power station Consultancy continues its strong and operating margin, after a few and hospital projects such as Førde performance challenging years . Sales in the Building Hospital and the New Drammen The Group’s core operations generated and Construction, Planning and Hospital . Projects the Norconsult has around 85 per cent of gross sales¹ . In Transport and Energy divisions increased worked on outside Norway include a 2017 sales of consultancy services grew somewhat and margins were maintained new hydropower plant in Zambia, Kafue by NOK 327 million (9 per cent) at a satisfactory level . Gorge Lower Hydro Power Project, and year-on-year, to NOK 4,120 million . one of Europe’s largest urban develop- Regions Norway increased its sales by 12 ment projects, Norra Djurgårdsstaden in In the Norwegian home market sales of per cent (NOK 171 million) compared Stockholm (Stockholm Royal Seaport) . consultancy services, excluding IT, with the previous year, to NOK 1,612 increased by NOK 292 million (10 per million . The largest absolute growth was Growth strategy progresses, with cent) to NOK 3,188 million . A larger reported in the West and Central improved earnings for the Group employee headcount and improved regions . The Inland and Southeast In 2017 the Group posted sales of NOK billable hours were the main reasons for regions also experienced strong growth 4,624 .3 million, which were up NOK the increase . In 2016 and 2017 Norcon- in revenues, and alongside the Central 388 0. million (9 .2 per cent) on the sult won many large projects within region reported the largest relative previous year (NOK 4,236 .3 million) . transport in particular, providing a strong improvement in operating profit . Operating profit was NOK 370 9. million, business base throughout the year . up NOK 41 5. million on the previous year Competition in the Norwegian home Consultancy operations in the other (NOK 329 4. million) . The operating market is stiff, but targeted action in 2017 Nordic markets also developed well . In margin increased to 8 0. per cent, up enabled the company to compensate 2017 the share of the Group’s consult­ from 7 8. per cent in 2016 . for this by charging for a larger propor- ancy-related sales generated in these tion of available hours as a result of countries increased to 17 5. per cent . The improved operating margin and higher utilisation . profit are primarily due to good activity 2017 was a good year for the Swedish levels and strong project execution The Head Office – geographically­ consultancy operations, resulting in a within core business in Norway and the centred on Oslo and Akershus and a significantly improved operating margin, Nordic region in general . The Group’s focal point for several market areas while sales rose by NOK 35 million international business outside the – made the greatest contribution to the (6 per cent) to NOK 577 million – mainly Nordic region and its staffing operations Group’s operating profit in 2017, but through organic growth . The Road and could not match their performance in Regions Norway demonstrated the Rail business area and the Architecture recent years . greatest relative growth . and Urban and Regional Planning The consultancy side of Head Office business area reported the greatest The return on equity (before tax) was operations achieved an 8 per cent relative and absolute growth in both 44 0. per cent, up from 41 .1 per cent in increase in sales year-on-year (NOK 121 sales and operating profit . However, the

Sales (NOK million) Operating profit (NOK million) Operating margin (%)

5,000 500 10

4,000 400 8

3,000 300 6

2,000 200 4

1,000 100 2

2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017

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

52 Board of Directors’ report 2017

subsidiary Norconsult Fältgeoteknik AB tion to the bottom line, the IT-related Consolidation in the Scandinavian – which provides ground surveys – had a operations provide the Group with market continues, with other major difficult year, with lower sales resulting in potential further competitive advantages players in the market also making various a small operating loss due to some through an increased focus on the acquisitions in 2017 . Norconsult challenging assignments . digitalisation of processes and systems . continually monitors potential ­acquisition candidates, both large and In Denmark, Norconsult has made a The subgroup Technogarden specialises small, assessing these on the basis of number of acquisitions in recent years, in recruitment and staffing of technical factors such as compatibility with our and also achieved strong organic resources . Technogarden’s total sales strategy and corporate culture . growth . This resulted in a 44 per cent increased by 10 per cent (NOK 35 6. increase in sales in 2017, to NOK 134 million), having suffered from a weak Increased digitalisation is bringing great million, and improved operating profit . market in recent years due to the opportunities for Norconsult . Smarter downturn in the oil industry . While tools and methods are opportunities to For consultancy activities outside the margins remain under pressure in both deliver even higher quality products to Nordic region 2017 was a challenging Sweden and Norway, Technogarden­ is our clients and can streamline the way year, just as in the previous year . Sales still delivering positive results overall . we perform projects – benefiting both fell in all areas, and overall the interna- Norconsult and our clients . Techno­ tional operations made an operating Market outlook: strong markets, but logical development in the industry, loss . To improve profitability it was stiff competition combined with changes in our clients’ decided that during the year the The past year saw a continuation of the and partners’ purchasing processes and companies in Peru and Chile, as well as positive macroeconomic trend that has contract types, require the consultancy SCDS in Mozambique, would be either characterised Norconsult’s main markets sector to develop and adapt the way we liquidated or sold . in recent years . In Norway, public work . Innovation, digitalisation and smart investment in areas such as infra­ processes are therefore high on The trend for the remaining companies structure and upgrading of public Norconsult’s agenda . The company has in southern Africa is positive, with buildings has largely compensated for a attracted global attention for its ability to acceptable operating margins . In Asia, lower level of activity in the oil sector . In harness new technology and digital the Philippines continues to report good the coming years the shift to a greener, modelling (BIM) in projects . For the results, while delays to the start of key more sustainable society is also second consecutive year Norconsult projects in Malaysia continued to bring expected to bring increased demand for was a finalist at the AEC Excellence challenges . The office in New Zealand efficient, climate-smart solutions within Awards in Las Vegas . The company was established at the end of 2016 and construction, transport and energy . achieved third place in the Infrastructure was unable to generate an operating category for its unique and innovative profit during its start-up phase in 2017 . Towards the end of 2017 the govern- use of gaming technology in the Ulriken ment signalled that its expansive project for Bane NOR, the state-owned Norconsult is continuing its strategic financial policy is to be scaled down as a company responsible for the Norwegian focus on boosting competitiveness result of the improvement in conditions national railway infrastructure . through improved client and market in the private sector and the related fall initiatives and smarter work processes . in unemployment . The improvement is Norconsult is the largest interdisciplinary The outlook is considered positive for due to factors such as low interest rates, consultancy firm in Norway, and one of the various market areas in the Nordic favourable exchange rates for the leading players in its field in the region, and with the measures taken by ­Norwegian exports, a greater level of Nordic region . Despite continued stiff the company in respect to the interna- innovation and moderate pay settle- competition in the market, Norconsult is tional operations, their contribution is ments . The move from public spending well equipped to deliver profitable also expected to improve . to an increasing proportion of private growth in the years ahead . The overall consumption will take place gradually picture indicates a large market for IT-related operations solid, but over a number of years . Many of Norconsult’s wide range of services and challenging market for staffing Norconsult’s public sector projects have we are well positioned to adapt to future Alongside consultancy and design, a long time horizon, and such projects developments in the market . around 6 per cent of the Group’s sales are expected to continue to make up a are generated from the development, substantial share of our portfolio of sale and operation of IT solutions within work . The company believes it is well infrastructure, property and construction equipped to accommodate this trend, technology . In 2017 sales of such which reinforces the importance of services increased by 7 per cent to NOK working continually to improve the 264 9. million, and both operating profit ­company’s competitiveness and and the operating margin were strength- adapting the product mix to ensure that ened further . As well as a solid contribu- our offering satisfies client demand .

53 Employees, organisation and the environment

Norconsult’s most important asset is its employees and their expertise. The com- pany works systematically to attract the most capable, qualified and motivated colleagues in accordance with the Group’s culture platform LiVE. We also actively work to retain and develop our workforce. At the start of 2018 the Group employed around 3,200 people.

Equal opportunities and rights NORMS . Norconsult takes a zero identify hazards and reduce risk in work Everyone in the Norconsult Group shall tolerance approach to harassment and situations, including establishing and have equal opportunities and rights offensive behaviour . The company has issuing instructions for potentially risky regardless of gender or other personal had a dedicated whistleblower channel work operations away from the office . attributes . One of the company’s targets since 2013, where any irregularities can All employees are responsible for is to raise the percentage of women in be reported anonymously . ensuring that occupational risks relating the Group’s operating units and at to projects and work tasks are identified, management level, and overall the Group Annually, Norconsult measures job evaluated and documented . Health and made progress in this area in 2017 . satisfaction, compliance with LiVE and safety considerations are incorporated maps employees’ perception of into the company’s routines for project Women made up 31 .3 per cent of the Norconsult in various areas in a implementation . Group’s employees at the end of 2017, a ­Scandinavian Group’s employee survey . 1 5. percentage point increase on the The results of these surveys form a In 2017 Norconsult implemented a new previous year . The percentage of basis for further development of the electronic system where incidents of all women in management positions within business and continuous improvement kinds are recorded and managed . Such the Group increased by 1 4. percentage of the working environment . Norcon- incidents include injuries and near-­ points, from 22 9. per cent in 2016 to sult consistently scores highly for injuries, environmental damage, 24 5. per cent at the end of 2017 . A total working environment and job satisfac- damage to property and related of 26 6. per cent of the Group’s Board tion in the LiVEing employee survey . near-misses, non-conformances, were women . Norconsult­ AS’ Working observations, suggested improvements, Environment Committee comprises five Norconsult AS’ sickness absence rate is findings from external inspections and women and one man, and the more than 3 percentage points below external complaints . The system is an ­company’s chief safety representative in the Norwegian average, and in 2017 important part of the company’s 2017 was female . closed on 2 9. per cent . This is a initiatives for continuous improvement, reduction of 0 4. percentage points from learning, experience transfer and risk At the end of 2017, 29 4. per cent of the previous year . Norconsult is actively reduction . employees at Norconsult AS were striving to reduce sickness absence . women – up 1 percentage point on the In addition to producing and making previous year . The percentage of available support tools to help all Sickness absence (%) women in management positions within managers with responsibility for the Norconsult AS decreased slightly, employees to follow up long-term % 3.5 from 21 7. percentage points in 2016 to sickness absence, we developed a 21 percentage points at the end of 2017 . classroom-based course in 2017 that 3.0 includes modules covering sickness 2.5 Health, safety and the working absence . The company’s statistics for 2.0 environment sickness absence are reported to Group Norconsult is committed to maintaining Management each quarter . In addition 1.5 the health and safety of all its employees to the pleasing results of the LiVEing 1.0

in accordance with the Group’s ethical employee survey and low sickness 0.5 guidelines . Compliance with require- absence rate, ­Norconsult experiences 0 ments relating to health, safety and the low staff turnover, and in 2017 the staff Short-term Long-term Total working environment is an integral part turnover rate closed on 4 5. per cent . Total Total Total Total of the Group’s management system Norconsult AS works systematically to 2014 2015 2016 2017

54 Board of Directors’ report 2017

In 2017 a total of 38 HSE-related In December 2017 a total of 130 of our ­consultants, contractors, suppliers and incidents associated with people, employees moved into block 1 of other operators . environment or property were recorded . Powerhouse Kjørbo, which is owned by A total of 14 incidents caused injuries or Entra Eiendom . The refurbished office Norconsult’s own activities are primarily near-injuries to employees . Of these, buildings have been classified by office-based, with the result that the one case required medical treatment BREEAM-NOR as Outstanding, both for company’s operations do not result in and four resulted in absence . the design phase and “as built” . This is discharges to water or air . Norconsult is the highest of the five environmental certified under the Eco-Lighthouse’s One of the company’s targets is for classification levels . In 2018 the main office model and through this nobody to be injured or become sick in company will also start using Power- scheme works to chart how the external connection with working for Norcon- house premises in blocks 2 and 3 . environment is affected by activities at all sult . Various measures are being our offices in Norway . implemented to reinforce the safety One of the Group’s goals is to present culture in the company, such as work sustainable solutions for its clients . Norconsult’s energy requirements at its to shape attitudes and increase Norconsult AS actively endeavours to offices are mainly covered by electricity, awareness of safety both on and off identify innovative and sustainable and in the case of the head office, partly building sites . The company’s statistics solutions that will reduce CO2 emissions through water-borne district heating/ for injuries and damage to property are and energy consumption and result in cooling . Norconsult leases some reported to Group Management each less intrusive interventions in nature and company cars for business travel and quarter . the environment, and in more environ- owns several electric cars . The compa- mentally friendly choices of materials ny’s car policy establishes requirements Corporate social responsibility, and improved traffic safety . Norconsult for low emissions for the fleet’s vehicles . sustainability and external environment AS systematically strives to evaluate the The main way in which Norconsult risk of the solutions that it plans and Norconsult actively endeavours to exercises its corporate social respons­ project-designs in order to avoid injuries reduce waste . The company participates ibility is through the services the Group to construction and operative personnel . in return and recycling schemes for delivers to its clients . Norconsult also consumer goods where such schemes actively participates in group-wide During the period there was increased have been established . Routines have measures to ensure that business focus on the sustainability of our been established for leasing PCs for the activities are practised in such a way as projects and services, particularly in company’s employees with a supplier not to breach internationally recognised relation to the challenge of climate that guarantees either reuse or environ- principles and guidelines relating to change . This will be an important area mentally friendly recycling of discarded human and employee rights, the for the company in the future . equipment . environment and corruption . Our basic ­Norconsult provides a number of principle for ethics is that everything we services related to climate change, and Norconsult’s employees are encouraged do shall withstand public scrutiny . All our employees have expertise and to use public transport such as trains, the Group’s employees receive annual interest in a broad range of climate-­ trams and buses as a means of transport training in ethical dilemmas . related areas associated with basic where such is expedient, and to use knowledge of how the climate is video and phone conferences whenever Norconsult is aware that its activities changing, measures to reduce green- possible to avoid unnecessary travel . impact the external environment – pri- house gas emissions and adaptation in Web conferences are widely used for marily through the advice the company order to adapt to climate change . interaction between company gives to its clients, but also through the ­employees, across geographic areas and actions of our employees . The compa- To reinforce our focus on sustainability organisational units, for major profes- ny endeavours to reduce this impact and development in Arctic environ- sional conferences and to document through various improvement projects, ments, Norconsult has appointed a presentations etc . Norconsult’s profes- consistent with the Group’s ethical Sustainability Director and an Arctic sional resource pool comprises around guidelines and environmental obliga- Director, who will help position the 100 advisors who work as specialists in tions . Requirements to take account of company within two areas which the safety, risk management, health, the the external environment have been company considers to have great working environment and the external embedded in the Group’s management potential . environment . These can be deployed for system, NORMS, and are thus part of internal improvement projects and the company’s routines for project Norconsult is an active participant in the external projects as required . The implementation in a similar way to Green Construction Sector network, an company has consultants qualified requirements for areas such as techni- initiative designed to promote a green, under certification schemes such as the cal and professional quality, time, fossil-free future and secure the sector’s Eco-Lighthouse scheme, ISO 14001 finance and health and safety . competitiveness . The network is an (Environmental management) and informal forum for developers, Breeam .

55 Research, development and innovation

Research and development and our expertise is exhibited . measurements to investigate the Norconsult actively focuses on research degree to which active and passive and development in order to be able to In the past year five employees phase-change elements can reduce offer up-to-date advice to our clients completed industry PhDs with or eliminate the need for cooling in and be a leader in our market areas . ­assistance from Norconsult and in office premises . The project is a cooperation with the Research Council collaboration with Oslo Metropolitan Development activities largely take place of Norway . Norconsult thereby University and involves individuals as part of day-to-day operations, strengthens the academic expertise of associated with the university at both innovative solutions being developed both the employee and the organisa- PhD and Master’s levels . within clients’ projects . Internal discipline tion in relevant areas, while at the same Hot and cold geothermal energy forums transfer knowledge between time making a direct contribution to parks: Development of a simulation employees, while modern IT tools assist long-term applied research . program to analyse the effect and with communicating and documenting combination of geothermal energy solutions . New clients benefit from this Norconsult’s Norwegian research parks at different temperature levels . knowledge being made available, thus environment had a high level of activity The purpose is to increase the facilitating further progress . This is one throughout 2017, involving many amount of free cooling (cold well of the ways that Norconsult contributes people both within the company and parks) and the effectiveness of heat to increased social benefit . outside . The main focus has been on pumps (hot well parks) . integrated technical energy solutions, Systematic networking with research indoor climate and special control As in previous years, Norconsult environments in Norway and abroad algorithms . This innovative work has continued working closely with plays an important role in strengthening raised the level of expertise both within academic environments to develop our position and standing as a leading Norconsult and outside the company . solutions specially oriented towards consultancy . Much of the research The specialist expertise we acquire is healthcare buildings . In 2017 particular performed in Norway is carried out by used actively when bidding for projects, progress was made in the following universities and research institutes . As and representatives of Norconsult have research projects: an expertise business, Norconsult aims been invited to present their results at a to be at the forefront of developments number of international conferences . Optimisation of surplus heat and and systematically works to build cooling requirements: The EnergiX relationships and develop research A large proportion of the research work programme for the Research Council projects . As a high-profile player in within the Group is in the area of of Norway is developing energy-­ research and development resource heating and indoor climate for different optimised integrated solutions in pools, we gain access to cutting-edge types of buildings . Among the initiatives healthcare buildings that will developments in research and are able started during the year were the generate cost savings . Simulation to impact research using our own following research projects: models and management tools are knowledge . The company interacts applied in the design work, which with inspiring resource pools in which Phase-change materials: Develop- integrates heat pumps, cooling experience and knowledge are ment of simulation models and systems and boreholes to ensure exchanged, networks are established laboratory experiments involving optimal utilisation of geothermal

56 Board of Directors’ report 2017

heat . The project is being carried out stored in a layer of stone dust under Innovation and business development in cooperation with the Norwegian buildings . Heat pump technology Norconsult’s systematic processes and University of Science and Technology ensures that the energy can be used creative methods for innovation (NTNU), the University of Bergen, when needed during the colder contribute to the development of Christian Michelsens Research and months . In 2017 the technology was effective and innovative solutions for other contributors . developed further in a research the company’s clients in construction, Airborne infection isolators: Support- partnership with the Technical transport and infrastructure projects ed by Innovation Norway and in University of Denmark and Free and for how we work internally . collaboration with the University of Energy, financed by Danish Energy’s Turku, Norconsult is developing research and development pro- Norconsult’s innovation process better and cheaper airborne infection gramme, Elforsk . The aim is for the focuses on technical solution isolators through CFD (Computer technology to create a competitive ­development to ensure that all Fluid Dynamics) simulators and alternative to geothermal heating for ­alternatives are considered in the laboratory experiments . The aim is to seasonal heat storage . search for the best ideas . Methodical reduce the risk of infection by 90 per Concrete reinforcement: Norconsult identification of focuses and goals, cent compared with normal patient is collaborating with doctorate professional facilitation of creative work wards and to cut costs by 90 per students at Chalmers University of meetings and a structured professional cent compared with traditional Technology in Gothenburg on evaluation process all help Norconsult’s isolators in Risk category 4 . research into reinforced concrete expert advisors to find optimal solutions structures . Among other things, this in close collaboration with the client . In addition to the activities in the parent has increased insight into the The innovation process is scalable and company, innovative work is also being dynamic response of a concrete is actively used in projects of all sizes carried out by subsidiaries . For structure and the impact in the event across all market areas . ­Norconsult Sweden, for example, of a sudden load (large shock or creativity and collaboration are explosion) or external forces Using our expertise in innovation important parts of external profiling . In (temperature changes, shrinkage management, Norconsult develops and the past year the company contributed etc .) . Research has also been carried implements work processes adapted to with research and development in areas out into the use of glass and/or existing and future technological such as: carbon fibre as reinforcement in requirements and opportunities . This concrete structures . In the right allows us to satisfy our clients’ ASES (Active Solar Energy Storage): conditions, the technology could ­expectations in terms of outstanding A patent-pending technology for mean a significant simplification and efficiency, sustainability and year-round heating of buildings using cost reduction for the reinforcement interdisciplinary­ collaboration. solar energy . The solar energy is and maintenance of existing captured via solar panels during the concrete structures . warmer months of the year and is

57 The Board’s work, management systems and internal controls

Work of the Board the company’s employees . Share The Board held eight meetings in 2017 . The Group’s Board shall comply with the valuation is regulated in a shareholder Management and the Board are also in requirements of the Norwegian Public agreement . The Board is authorised to contact between the Board meetings as Limited Liability Companies Act to issue shares subject to the restrictions necessary . manage assets in Group companies on imposed by the general meeting . The behalf of the owners . The Board shall Board is further authorised to acquire Management system also monitor daily management, which treasury shares . The Group has embedded its policy for is delegated to the CEO, and the corporate governance in the Group’s company’s business in general . In 2017 the Board established an Audit management system . Norconsult ­Norconsult’s Board comprises six Committee to conduct independent complies with the Norwegian Code of shareholder-elected representatives – checks on the Group’s financial Practice for Corporate Governance three external and three internal Board reporting and control systems . The (NUES) to the extent that the recom- members – and three members elected Committee is also responsible for mendations are deemed relevant to a by employees . None of the Board supervision of the Group’s internal company that is wholly owned by its members serve on Norconsult’s Group control, compliance and risk manage- employees . Management team . ment . The Audit Committee is a working committee of the Board that The Group’s management system In 2017 Roar Engeland was elected as prepares and advises, but the decision-­ NORMS (Norconsult Management the new Chairman of the Board and making authority in these areas remains System) is based on the Group’s guiding Mari Thjømøe as the new Deputy Chair . with the Board . policies and includes all measures for Norconsult Holding AS’ Annual General managing and improving quality, HSE, Meeting determines the remuneration In addition, the Board has a Compen­ internal controls and risk management . paid to Board members based on the sation Committee and an Equity NORMS ensures compliance with recommendations of the Election Committee . The Compensation legislation, regulations, client require- Committee . The Election Committee Committee assists the Board with ments and Norconsult’s internal comprises four members, all of whom evaluating remuneration paid to senior requirements, including with our ethical are elected by the general meeting . The executives and establishing general guidelines and requirements for main task of the Election Committee is principles and a strategy for remunera- accurate financial reporting . NORMS to ensure that the Board has the right tion of key individuals in the Norconsult also documents best practices and blend of expertise and experience . Group . The Equity Committee assists other information required by the Board with evaluations and ­employees to perform their work in a Under Norconsult’s ownership model, ­recommendations on important consistent and efficient manner . trading of the company’s shares is matters related to share ownership in The Board of Directors has overarching limited by the company’s Articles of the Group . responsibility for ensuring that the Association and shares can only be management system functions transferred between the company and efficiently and smoothly .

58 Board of Directors’ report 2017

Norconsult’s head office in Sandvika.

The NORMS management system is In 2017 Norconsult continued working implemented . Risk assessment results based on the company’s core activity, on the rollout of Group policies to are owned by Group Management and namely the planning and execution of subsidiaries, including frameworks for are actively used in the Group’s projects of varying scopes involving a projects, purchasing, financial reporting, ongoing measures to reduce risk, and broad range of professional expertise HR and IT . E-learning courses were held in other strategic work . and a wide variety of clients . in ethics and ICT security for all the Group’s employees in 2017 . Within Information and Communication The system satisfies all requirements laid Technology (ICT) security, the global down in relevant legislation and in Risk management risk picture is continually shifting . The NS-EN ISO 9001 Quality management, Risk management in the Group focuses company works systematically and and complies with NS-EN ISO 14001 in particular on company risk, financial purposefully to make both its own Environmental management . Norconsult­ risk, employee risk, individual project employees and its partners aware of is certified under the Eco-Lighthouse’s risk and reputation risk . The status of how to use ICT securely and wisely . main office model . Norconsult AB in the individual risk areas is reported to Maintaining a uniform, modern IT Sweden has been certified to ISO 9001 the Board and the Group Management infrastructure helps reduce technical and ISO 14001 for many years . The team on an ongoing basis . The Group vulnerability . In addition, preventive acquired companies in Poland and constantly works to develop and measures have been taken in specific Iceland are certified to ISO 9001 . monitor its system for risk management areas where there is a recognised need in all subsidiaries in order to avoid for this . NORMS is documented and is easily undesired incidents . accessible for employees via the intranet . NORMS was launched on a The company endeavours to reduce new IT platform in 2016 . During 2017 its reputation risk by influencing the content was revised and further ­corporate culture and attitudes of functions were added . In January 2017 employees and business partners, and a new system for reporting incidents through follow-up supervision to ensure (non-conformances, observations, compliance with the management injuries and near-injuries, damage and system . near-misses, external audits, improve- ment suggestions) was launched to In 2017 corporate risk was discussed strengthen work on continuous with the Board, based on the strategy . improvement by reducing risk and The risk management process is avoiding injuries and damage, learning intended to identify material risks for from mistakes and preventing the Group in relation to its targets and ­repetitions – thereby strengthening the strategic focus areas, and to evaluate Group’s competitiveness . whether adequate measures have been

59 Annual financial statements

Income statement, balance sheet and Income statement, balance sheet and clients not being able to meet their statement of cash flow for the statement of cash flow for Norconsult obligations is regarded as low . The Norconsult Holding AS Group Holding AS company stresses the importance of The Group posted gross operating The parent company Norconsult invoicing work at the earliest ­revenues of NOK 4,624 .3 million in 2017 Holding AS does not perform any ­opportunity and closely monitors trade (2016: NOK 4,236 .3 million) and an operating activities . The company receivables . operating profit of NOK 370 9. million posted an operating loss of NOK 1 5. (2016: NOK 329 4. million) . The operat- million (2016: NOK -1 .1 million) in the Norconsult’s liquidity is deemed to be ing margin for 2017 came in at 8 0. per reporting period . Profit before tax came satisfactory and in 2017 operations cent, compared with 7 8. per cent in in at NOK 154 7. million (2016: NOK were self-financing in virtually all 2016 . 185 7. million) . At the reporting date business units . Surplus liquidity is used cash and cash equivalents totalled NOK to fund dividend payments or invest- In 2017, the Group generated a net cash 366 5. million (2016: NOK 291 5. million) . ments in operating activities and inflow of NOK 76 5. million . (2016: NOK In 2017 Norconsult Holding AS acquisitions . The ­company has the 102 9. million) . The company’s net cash generated a net cash inflow of NOK leeway to reduce all of the above flow was affected by a moderate level 75 0. million (2016: NOK 126 .3 million) . elements if this is deemed necessary on of investment activities, dividend At the end of 2017 the company’s grounds of liquidity . All acquisitions are payments for the previous year and the equity amounted to NOK 206 0. million subject to due diligence, and the purchase of treasury shares during the (2016: NOK 272 8. million), which company focuses on objects with reporting period . equates to an equity ratio for the year sound profitability, promising future of 21 0. per cent (2016: 31 .2 per cent) . prospects and attributes that comple- The cash flow from operating activities ment the rest of the business . is deemed to be satisfactory in light of Financial risk the company’s growth . At the reporting As the Group’s historic record of bad Norconsult is exposed to currency date cash and cash equivalents totalled debt has been minimal, the risk of fluctuations as a result of international NOK 515 0. million (2016: NOK 438 5. million) . The difference between operating profit and cash flow from Cash flow from operating activities operating activities is primarily attribut- able to accruals and prepayments . MNOK 350 At the end of 2017 the Group’s equity amounted to NOK 873 0. million (2016: 300 NOK 822 .1 million), which equates to an equity ratio for the year of 35 8. per cent 250 (2016: 39 .2 per cent) . The decrease in the equity ratio primarily results from a 200 dividend to be paid from the distribut- able reserves of Norconsult Holding AS, 150 as well as from the net profit for the 100 year . This is due to the company’s strong financial position at the end of the year 50 and reported performance­ to date in 2018 . The Board considers the equity ratio to be satisfactory . 2012 2013 2014 2015 2016 2017

60 Board of Directors’ report 2017

activities . Some sales relating to the Events after the reporting period and in the Buildings market . Nordic is the above are invoiced in NOK, while others going concern assumption leading architectural practice in are billed in the applicable local curren- After the closing date Norconsult Norway, with around 160 employees . cy, EUR or USD . Under the present Holding sold all the shares in Its head office is in Oslo and the currency strategy, the company hedges ­Norconsult Eiendom AS, which owns company also has offices in currency fluctuations where this is the company’s head office in Sandvika ­Copenhagen and London . The expedient, and where applicable endeav- where Norconsult AS is the sole tenant acquisition is subject to approval by the ours to negotiate contract terms that and has no other activities . The buyer Norwegian Competition Authority and limit such exposure . In addition, changes was Oslo Areal AS and Norconsult is the takeover is planned for 1 June 2018 . in currency rates affect the recognised continuing to lease the premises until net value of the Group’s investments . 2030 . The sale has had a positive effect Other than as reported in the previous on the company’s financial position and paragraphs, no events of material Norconsult is expanding through both liquidity . The capital freed up will mainly importance for an assessment of organic growth and strategic acqui­ be reinvested in our core business . In Norconsult’s position or performance sitions . In recent years the company has view of the company’s highly selective have occurred since the end of the completed a number of acquisitions in approach to acqui­sitions (see the reporting period . which value in excess of book values has section on Financial risk), it is expected been identified . This value largely relates that the company will have significant In accordance with the Norwegian to employees and expertise, and is liquidity at its disposal in the coming Accounting Act, Norconsult confirms recognised in the financial statements as years . While under the company’s that the financial statements have been goodwill . In line with generally accepted management, the available funds are prepared based on the assumption of accounting practice, goodwill is invested based on a conservative going concern . amortised on a straight-line basis over its investment strategy . expected useful economic life . The Group’s management and Board On 10 April Norconsult announced that regularly review the value and useful it had entered into an agreement to buy economic life of goodwill, and any need 90 5%. of the shares in the company to recognise impairments, based on an Nordic – Office of Architecture AS . evaluation of the respective units’ actual The acquisition is of major strategic and expected future performance . importance to Norconsult, particularly

Allocation of profit for the year

The Board has evaluated the company’s The Board’s overall proposal to the Ordinary dividend 2018 overall financial situation including its general meeting for equity transactions equity and future prospects as back- is as follows: ground to its proposed dividend based Column2 on the net profit for 2017 . This year’s profit: NOK 154 587. mill This year’s profit Other equity: NOK 18 949. mill Share premium account 154.5 Norconsult Holding AS posted a net Share premium profit for the year of NOK 154,587 million account: NOK 115 464. mil 115.4 289.0 NOK million . The Board proposes that the TOTAL NOK 289.000 mill NOK million NOK million whole of the net profit is paid out in dividends, in addition to transfers from other distributable reserves . The transfer from the company’s reserves is due to From other equity the strong financial position at the end 18.9 of the year and the reported NOK million ­performance to date in 2018 .

61 Outlook

Norconsult has wide-ranging expertise In general, the outlook for the markets Internationally, in line with the Group’s and a diverse business within several in which the company operates is strategy, Norconsult will step up its market areas, and is well positioned for considered to be good . The company strategic focus on regions and markets the future in its main market areas . The expects strong demand for its services where the Group can bring its unique Group has a strong focus on risk in the foreseeable future . Faced with expertise and competitive advantages management, its day-to-day operations fiercer competition in an increasingly to bear in promising areas . are sound and the sale of Norconsult consolidated market, there will be an Eiendom in 2018 has strengthened the increased focus on delivering innovative The company’s financial strength is company’s financial solvency and and sustainable high-quality solutions satisfactory . The Board does not expect liquidity . These are good conditions for for clients’ projects . The company will a need for capital injection during the future growth . Norconsult has been an strive to maintain its leading position as year . However, the Board points out the active participant in the wave of sector a developer of new tools and new ways general uncertainty attached to future consolidation and is favourably of collaborating and working . conditions, and that market develop- positioned to maintain its leading ments are ­subject to general economic position in the Norwegian market and trends and performance . to increase its activities in the Nordic region .

Sandvika, 18 April 2018

Roar Engeland Chairman

Mari Thjømøe Ole Fossen Idunn Helen Kirkreit Deputy Chair Board member Board member

Vegard Jacobsen Harald Trosvik Henning Vellene Board member Board member Board member

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

62 Board of Directors’ report 2017

Oslo Airport

SwissWinds Development Consolidated financial statements

Norconsult comprises the parent company Norconsult Holding AS and its wholly owned subsidiaries Norconsult AS and Norconsult Eiendom AS . The Group performs most of its project activities through ­Norconsult AS and its non-Norwegian subsidiaries . In addition, the subsidiary ­Norconsult Informasjonssystemer AS provides ICT services for infrastructure and property, while the subgroup Technogarden supplies recruitment and consultancy services in Norway and Sweden . Norconsult Eiendom AS owns the company’s head office in Sandvika, where Norconsult AS is the sole tenant .

The consolidated financial statements show the income statement for 2017 and associated balance sheet as of 31 December 2017 for the Norconsult Holding Group .

64 Board of Directors’ report 2017 Income statement

NORCONSULT HOLDING GROUP

All figures in NOK ’000 2017 2016

OPERATING REVENUES AND EXPENSES

Operating revenues 4,624,262 4,236,273 Total operating revenues 4,624,262 4,236,273

Project costs 546,191 498,618 Salaries and payroll costs 3,107,858 2,847,276 Depreciation/amortisation of property, plant and equipment and intangible assets 102,547 93,892 Other operating expenses 496,799 467,108 Total operating expenses 4,253,395 3,906,894

Operating profit 370,867 329,379

FINANCIAL INCOME AND EXPENSES

Investment in subsidiaries and associates 4,427 1,916 Other interest income 4,342 4,149 Other financial income 20,430 21,018 Impairment of financial assets (6,003) 554 Other interest expenses (3,631) (4,252) Other financial expenses (19,050) (21,637) Net financial items 514 1,748

Profit before tax 371,381 331,127

Tax expense 108,729 99,456

Net profit for the year 262,652 231,671

Attributable to non-controlling interests 0 93 Attributable to controlling interests 262,652 231,578

65 Balance sheet As of 31 December 2017

Assets NORCONSULT HOLDING GROUP

All figures in NOK '000 2017 2016

NON-CURRENT ASSETS

Intangible assets Deferred tax assets 25,049 32,341 Client contracts, licences and software 24,356 15,878 Goodwill 211,900 201,563 Total intangible assets 261,305 249,782

Property, plant and equipment Land, buildings and other property 170,469 182,901 Chattels, equipment, office machinery 83,764 60,929 Total property, plant and equipment 254,234 243,831

Non-current financial assets Investments in shares and shareholdings 6,991 4,075 Loans to companies in the same group 13,031 13,089 Other non-current receivables 50,306 43,275 Total non-current financial assets 70,328 60,439

Total non-current assets 585,867 554,051

CURRENT ASSETS

Receivables Earned, non-invoiced income 254,231 196,123 Trade receivables 927,811 832,894 Other receivables 154,563 78,290 Total receivables 1,336,604 1,107,307

Bank deposits etc. Cash and cash equivalents 515,024 438,502 Total bank deposits etc. 515,024 438,502

Total current assets 1,851,628 1,545,809

TOTAL ASSETS 2,437,495 2,099,860

66 Board of Directors’ report 2017

Equity and liabilities NORCONSULT HOLDING GROUP

All figures in NOK '000 2017 2016

EQUITY

Paid-in equity Share capital 6,121 5,840 Treasury shares (215) (324) Share premium account 200,137 267,125 Paid-in non-registered capital 0 928 Total paid-in equity 206,044 273,569

Retained earnings Other equity 666,988 548,542 Total retained earnings 666,988 548,542

Non-controlling interests 0 0

Total equity 873,032 822,111

LIABILITIES

Provisions Pension liabilities 14,186 13,835 Other provisions 9,650 5,788 Total provisions 23,836 19,623

Other non-current liabilities Other non-current liabilities 20,321 17,790 Total other non-current liabilities 20,321 17,790

Current liabilities Trade payables 179,629 110,851 Advance payments from clients 66,240 68,701 Tax payable 83,415 71,982 Public duties payable 433,401 407,987 Proposed dividend 289,000 183,870 Other current liabilities 468,620 396,945 Total current liabilities 1,520,305 1,240,336

Total liabilities 1,564,463 1,277,749

TOTAL EQUITY AND LIABILITIES 2,437,495 2,099,860

67 Offices and addresses

Offices in Norway

Norconsult AS head office Sandvika Hammerfest Lakselv Os PO Box 626, NO-1303 Sandvika Strandgata 1, NO-9600 Hammerfest PO Box 279, NO-9711 Lakselv Brutippen 13, Vestfjordgaten 4, NO-1338 Sandvika Tel. +47 78 60 85 00 Kirkeveien 5, NO-9700 Lakselv NO-2550 Os i Østerdalen Tel. +47 67 57 10 00 Tel. +47 78 46 08 88 Tel. +47 62 49 76 01 Harstad Alta Skoleveien 1, NO-9407 Harstad Larvik Porsgrunn PO Box 1010, NO-9503 Alta Tel. +47 77 00 11 33 PO Box 35 – Fritzøe Brygge, Porselensvegen 20, Løkkeveien 4 A, NO-9510 Alta NO-3285 Larvik NO-3920 Porsgrunn Tel. +47 78 45 70 70 Haugesund Nedre Fritzøegate 2, Tel. +47 35 96 07 22 PO Box 458, NO-5501 Haugesund NO-3264 Larvik Askim Torggata 10, NO-5525 Haugesund Tel. +47 33 14 14 00 Sand Trøgstadveien 4 B, NO-1807 Askim Tel. +47 52 86 51 00 Lagarhusvegen 5, NO-4230 Sand Tel. +47 69 00 17 80 Levanger Tel. +47 52 79 00 70 Hjelmeland Okkenhaugvegen 4, Bergen Ryfylkevegen 7040, NO-7604 Levanger Sauda PO Box 1199 – Sentrum, NO-4130 Hjelmeland Tel. +47 74 08 55 80 Toppadalen 3, NO-4200 Sauda NO-5811 Bergen Tel. +47 52 79 00 70 Tel. +47 52 79 00 70 Valkendorfsgate 6, NO-5012 Bergen Lillehammer Tel. +47 55 37 55 00 Horten Bryggerigata 1, Seljord PO Box 110, NO-3191 Horten NO-2609 Lillehammer Brøløsveien 57, NO-3840 Seljord Bodø Apotekergata 14, NO-3187 Horten Tel. +47 61 22 79 00 Tel. +47 907 31 844 PO Box 234, NO-8001 Bodø Tel. +47 33 02 04 10 Konrad Klausens vei 8, Lillestrøm Ski NO-8003 Bodø Hønefoss Tærudgata 16, NO-2004 Lillestrøm Kirkeveien 1, NO-1400 Ski Tel. +47 75 40 45 00 PO Box 258, NO-3502 Hønefoss Tel. +47 67 57 10 00 Tel. +47 67 57 10 00 Ankersgate 10, NO-3513 Hønefoss Drammen Tel. +47 67 57 10 00 Mo i Rana Sogndal Grønland 67, NO-3045 Drammen PO Box 237, NO-8601 Mo i Rana Campus Fosshaugane Tel. +47 67 57 10 00 Jessheim Halvor Heyerdahlsv. 4, Trolladalen 30, NO-6856 Sogndal Storgata 3, NO-2050 Jessheim NO-8626 Mo i Rana Tel. +47 57 62 79 00 Eidfjord Tel. +47 67 57 10 00 Tel. +47 75 12 93 80 Lægreidsvegen 2A, Stavanger NO-5783 Eidfjord Kirkenes Molde PO Box 130, NO-4065 Stavanger Tel. +47 53 64 70 88 Kielland Torkildsens gate 1, Grandfjæra 24, NO-6415 Molde Jåttåflaten 27, NO-4020 Stavanger NO-9900 Kirkenes Tel. +47 71 24 04 60 Tel. +47 51 90 53 00 Fauske Tel. +47 78 59 80 00 Sjøgata 74, NO-8200 Fauske Mosjøen Steinkjer Tel. +47 75 64 46 30 Kjøllefjord Strandgata 24, NO-8656 Mosjøen Kongens gate 27, NO-7713 Steinkjer PO Box 128, NO-9790 Kjøllefjord Tel. +47 75 41 11 00 Tel. +47 74 13 41 80 Fredrikstad Fiksekaia, NO-9790 Kjøllefjord Dikeveien 34, NO-1661 Rolvsøy Tel. +47 78 49 90 90 Namsos Stjørdal Tel. +47 69 00 30 00 Havnegata 14, NO-7800 Namsos Kjøpmannsgata 12, NO-7500 Kristiansand Tel. +47 74 21 90 50 Stjørdal Førde Henrik Wergelandsgate 27, Tel. +47 74 08 55 80 PO Box 514, NO-6803 Førde NO-4612 Kristiansand Narvik Firdavegen 6, NO-6800 Førde Tel. +47 38 60 34 60 Teknologiveien 10, NO-8517 Narvik Tromsø Tel. +47 57 82 94 40 Tel. +47 76 96 78 60 PO Box 228, NO-9253 Tromsø Kristiansund Stortorget 2, NO-9008 Tromsø Gjøvik Kongens Plass 5, Odda Tel. +47 77 66 70 80 Studievegen 2, NO-2815 Gjøvik NO-6509 Kristiansund Eitrheimsvegen 10, NO-5750 Odda Tel. +47 67 57 10 00 Tel. +47 71 56 60 50 Tel. +47 53 64 70 88 Trondheim Klæbuveien 127 B, Hamar Otta NO-7031 Trondheim Torggata 22, NO-2317 Hamar Skansen 2E, NO-2670 Otta Tel. +47 67 57 10 00 Tel. +47 67 57 10 00 Tel. +47 40 10 16 66

68 Tønsberg Subsidiaries in Norway Subsidiaries in Sweden Stensarmen 4, NO-3112 Tønsberg Tel. +47 67 57 10 00

Ulsteinvik Norconsult Norconsult AB Technogarden Engineering Vikevmyra 1, NO-6065 Ulsteinvik Informasjonssystemer AS (NoIS) Theres Svenssons gata 11, Resources AB Tel. +47 67 57 10 00 PO Box 626, NO-1303 Sandvika SE-417 55 Gothenburg Theres Svenssons gata 11, Kjørboveien 29, NO-1337 Sandvika PO Box 8774, SE-417 55 Gothenburg Vadsø Tel. +47 67 57 10 00 SE-402 76 Gothenburg Tel. +46 735 141 000 PO Box 50, NO-9811 Vadsø Tel. +46 10 141 80 00 Tollbugata 7, NO-9800 Vadsø Technogarden Engineering Norconsult Astando AB Tel. +47 78 59 80 05 Resources AS Norconsult Fältgeoteknik AB Kungsbroplan 2, 6 tr, Kjørboveien 29, NO-1337 Sandvika Theres Svenssons gata 11, SE-112 27 Stockholm Verdal Tel. +47 67 57 10 00 SE-417 55 Gothenburg Tel. +46 10 141 80 00 Neptunvegen 6, NO-7650 Verdal PO Box 8774, Tel. +47 91 34 17 93 SE-402 76 Gothenburg Tel. +46 31 50 70 00 Voss Skulegata 11A, NO-5700 Voss Tel. +47 53 64 70 88

Ålesund Retirovegen 4, NO-6019 Ålesund Subsidiaries outside the Nordic region Tel. +47 70 17 05 00

Årdal PO Box 149, NO-6881 Årdalstangen Poland Mozambique Malaysia Tangevegen 1, Norconsult Polen Sp. z o.o. Norconsult Mozambique Lda. NorPower Sdn Bhd NO-6885 Årdalstangen Trzebińska 40, Av. Armando Tivane 1853 1st Floor, Reddi Building, Tel. +47 67 57 10 00 32-500 Chrzanów 978 Sommerschield, Maputo 393 Jalan Datuk Abang Tel. +48 883 99 3601 Tel. +258 21 48 50 58/9 Abdul Rahim, Fax +258 21 48 50 57 93450 Kuching, Sarawak South Africa Tel. +6 082 482888 Norconsult Africa (Pty) Ltd. Botswana Fax +6 082 480088 Subsidiaries in 1st Floor Quadrum 1, Norconsult Botswana (Pty) Ltd. Denmark Quadrum Office Park, Unit 7, Plot 145, Gaborone Philippines 50 Constantia Boulevard, International Finance Park, Norconsult Management Constantia Kloof Ext 28, Gaborone Services (Phil), Inc. 1709 Johannesburg Tel. +267 750 50 829 Unit 506 East Tower, PSE Centre, Norconsult Danmark A/S Tel. +27 11 675 0303 Exchange Road, Ortigas Center, Herlev Bygade 14, Fax +27 11 675 1758 Zambia Pasig City 1605 DK-2730 Herlev NorZam Ltd. Tel. +632 635 3819 Tel. +45 4488 2000 Norconsult Iyanda (Pty) Ltd. Plot 6470 Kariba Road, Fax +632 635 3820 1st Floor Quadrum 1, Kalundu, Lusaka Quadrum Office Park, Tel. +260 211 296041 New Zealand Subsidiaries in 50 Constantia Boulevard, Norconsult New Zealand Ltd. Iceland Constantia Kloof Ext 28, Thailand Level 3, 6 Arawa Street, Grafton, 1709 Johannesburg NorCiv Engineering Co. Ltd. Auckland 1023 Tel. +27 11 675 0303 121/91 RS Tower, 32th floor, Tel. +64 9 307 0933 Fax +27 11 675 1758 Ratchadaphisek Road, Din Daeng, Norconsult ehf. Khet Din Daeng, Bangkok 10400 Hlidasmari 4, 103 Kópavogur Tel. +662 642 2450 Tel. +354 820 5915 Fax +662 248 6821 As of April 2018

69 Oslo Airport Photos/illustrations: p. 1: Oslo Airport, Dag Spant | p. 5, 9, 33, 50: Einar Aslaksen p. 17: Trygve Schønfelder | p. 18: uka.no | p. 21: Mats Kahlstrøm | p. 25: Vianova p. 27, 38, 57: Johnny Syversen | p. 29: Rift AS | p. 31: Roger Fosaas p. 34: Lars Augustsson | p. 35: Gassco | p. 36: Scanpix | p. 40: Baezeni/Norconsult p. 42: Lund + Slaatto Arkitekter | p. 43: Vetle Houg/Norcem | p. 44: Adam Mørk p. 45: AIX Arkitekter and Suteki Studios | p. 49: Ibrahim Elhayawan p. 62: SwissWinds Development | p. 70: Ivan Brodey Design: Norconsult Print: 07 Media

71 About Norconsult

Norconsult is Norway’s largest and one of the Nordic region’s leading inter­ disciplinary consultancy firms, with activities spanning several continents . We offer services in regional planning, design and architecture . Norconsult engages in projects involving Buildings, Transport, Energy, Industry, Water, Oil and Gas, Environment, Planning, Architecture, Risk Management and IT . The Group is headquartered in Sandvika near Oslo . The company is owned by its employees .