Annual Report | 2018 A word from the CEO | This is Norconsult | Strategy 2019–2021 | Heads for tomorrow | Selected projects 2018 | Our market areas | Board of Directors’ Report for 2018 | Consolidated financial statements 5 326 Turnover (NOK, millions) Contents 6 000 5 000 4 000 3 000 2 000 A word from the CEO . 4 1 000 2014 2015 2016 2017 2018 This is Norconsult Our business . 7 Corporate governance . 10 402 Strategy 2019–2021 . 12 Operating profit (NOK, millions) Heads for tomorrow #headsforrecruitment . 16 400 #headsforcareer . 18 #headsforsustainability . 21 300 #headsforresponsibility . 22 #headsforenvironment . 25 200 The little big differences 100 Selected projects 2018 . 28 Our market areas . 38 2014 2015 2016 2017 2018 Board of Directors’ Report for 2018 . 46 Consolidated financial statements . 62 3 800 Forretningsidé Employees 2018 3 800 2017 3 200 2016 3 050 2015 2 970 2014 2 900 Front page photos Photo 1: Havøygavlen Wind Power Plant . Photo 2: City Bridge in Flekkefjord . Photo: Southern Region of the Norwegian Public Roads Administration 2 Photo 3: Norconsult’s employees working at the VEAS facility . Photo: Johnny Syversen 3 A word from the CEO | This is Norconsult | Strategy 2019–2021 | Heads for tomorrow | Selected projects 2018 | Our market areas | Board of Directors’ Report for 2018 | Consolidated financial statements As “Norconsultants”, everything we do must contribute to little big differences A word from the CEO that create added value for our clients. Photo: Erik Burås 2018 was a hectic and good year for the acquisition of Arkitekthuset joint Ringerike Railway Line and E16 In addition, we have been selected as main topics for the 2019–2021 strategy must sharpen our ability to be in the Norconsult . We have engaged in the Monarken AB in Sweden, and the Danish motorway project, the InterCity consultants, architects and IT consul- period . We must become even better at forefront of development . We believe largest and most future-oriented architecture and consultancy company Drammen to Kobbervikdalen railway tants for the construction of a number collaborating effectively along the that focusing on having the most infrastructure projects in Norway and KAAI – Kærsgaard & Andersen A/S, project, and the E18 motorway of new schools, hospitals and power entire value chain when creating capable managers and working internationally, ranging from airports, Norconsult has now positioned itself as between Tvedestrand and Arendal . plants in Norway and abroad . solutions for large, complex and socially consistently with leadership schools and hospitals to transport one of the largest and leading players in Several new and exciting projects are in important projects . development, is the key to success in solutions . In addition, we welcomed the Scandinavia’s architectural sector . an early phase . For example, Norconsult Client value as our strategy achieving employee satisfaction and 200 new architects, in completing our These acquisitions open up new is part of the team that will be working The headline for our next strategy period In addition, we shall be an even more further growth . Management and largest acquisition ever, Nordic – Office opportunities for collaboration and on the new Bodø Airport . We are also is client value . For us, client value is first prominent driving force for the employee development is therefore also of Architecture . We have significantly enable the company to successfully working with AF Gruppen on an EPC and foremost understanding the client, development of creative, sustainable of key importance during the strategy strengthened our competitiveness undertake increasingly complex and contract for the development of the cultivating a close arelationship based on solutions for our clients . We have a period . throughout the 2016–2018 strategy socially important projects . Norconsult E39 motorway between Kristiansand trust, communicating openly and clearly clear ambition to help our clients period . Embarking on the 2019–2021 also acquired the IT development West and Mandal East . In addition, and ensuring that our clients receive reduce their greenhouse gas emissions We aim to be the most attractive strategy period, we are ready to create company Fundator AS during the year . Nordic is part of a group that is what they need . As “Norconsultants”, and energy consumption further in company to work for, and we aim to even more value for our clients, owners This is an exciting specialist group, which designing the new government building everything we do must contribute to the major projects . We are taking an have the most satisfied clients and and the society around us . provides the Group with new expertise complex in Oslo . little big differences that create added increasingly stronger position in employees . in areas such as systems development, value for our clients . If we succeed in digitalisation by offering fully digital Our goal of profitable growth and machine learning, IT architecture and IT In Sweden we started the preparation of this, we will also succeed in creating solutions . Thank you for a successful 2018 . revenues of NOK 5 billion by the end of consulting . a general plan for the City of profitable growth and a fulfilling We are looking forward to meeting new the 2016–2018 strategy period was Gothenburg, as well as the preparation workplace for our employees . Expertise as a competitive advantage challenges – both sustainable and achieved with a solid margin . Enhancing the world around us of geotechnical surveys for the At Norconsult, we have a solid corporate digital – together in the years to come . Norconsult has been through a Each year we are engaged in more than construction of a dual track railway line Globalisation, urbanisation and culture founded on our common tremendous growth phase . We have 20,000 projects, both large and small . between Kiruna and the Norwegian digitalisation are challenging us to find cultural platform LiVE, which consists of acquired 17 companies over the last The competition is fierce, but we are border on the oldest railway of its kind, completely new solutions for comp- ten principles for management, ethics three years . In 2018, we welcomed nevertheless seeing a high level of known as the Iron Ore Line . leting our projects . Of the major trends and values . In addition, we introduced close to 800 new employees to the activity in all of our market areas, both we are seeing in the market, collabo- LiVE PRO in 2018 . LiVE describes our Per Kristian Jacobsen company . in Norway and abroad . In 2018, Norconsult in Denmark began ration, digitalisation and sustainability culture, while LiVE PRO characterises CEO the engineering design for Scandinavia’s stand out as the most important how we work . Simultaneously, we have Solid acquisitions Norconsult has worked on several largest airport hotel, Comfort Hotel at development trends affecting our ability a vision of being the consultant that can In 2018, we acquired Nordic – Office of exciting projects in 2018 . Among these Kastrup . to create client value . Collaboration, solve the most challen ging projects for Architecture . With a shareholding in are the urban development and design sustainability and digitalisation have our clients at any given time . As the Nordic of over 90 per cent, as well as engineering of Bispevika in Oslo, the therefore been defined as the three world is changing increasingly faster, we 4 5 A word from the CEO | This is Norconsult | Strategy 2019–2021 | Heads for tomorrow | Selected projects 2018 | Our market areas | Board of Directors’ Report for 2018 | Consolidated financial statements Our business Hammerfest Vadsø Lakselv Kirkenes Alta Tromsø Harstad Narvik Bodø Fauske Mo i Rana Mosjøen Norconsult is Norway’s largest, and one of the Nordic region’s leading, Luleå Kópavogur interdisciplinary consultancy firms for social planning, engineering design and Piteå Namsos architecture. With our 3,800 employees, we are engaged in more than 20,000 Steinkjer Skellefteå projects, both large and small. We are a driving force for sustainable and creative Kristiansund Verdal Levanger solutions when developing tomorrow’s society. Fully digital deliveries are our Molde Stjørdal Umeå Trondheim preferred choice. Ulsteinvik Ålesund Östersund Örnsköldsvik Os Førde Sogndal Sundsvall Årdal Otta With 96 offices, our business activities The combination of a local presence We offer consultancy services for Voss Hudiksvall span the world, and we have a particu- and our broad geographic and interna- projects in the areas of buildings, Bergen Eidfjord Lillehammer Odda Gjøvik Hamar larly strong Nordic footprint . We have a tional expertise create added value for transport, energy, industry, water and Oslo Haugesund Hønefoss Jessheim Sauda Borlänge leading position in Norway, and we our clients . We have a culture of close sewage, oil and gas, the environment, Lillestrøm Hjelmeland Sand Sandvika Älvkarleby Drammen Ski have gradually built ourselves up to collaboration across organisational and planning, architecture, risk manage- Kongsberg Ludvika Stavanger Askim Seljord Horten Karlstad Uppsala Espoo become a significant challenger in the geographic boundaries, which allows ment and IT . Our clients are public and Porsgrunn Fredrikstad Kristinehamn Tønsberg Västerås Swedish and Danish markets . We also us to balance our capacity utilisation private clients in Norway and abroad . Larvik Örebro Stockholm Kristiansand have international activities outside the and ensures market-leading