Signed. Every day AF's employees leave their impressions all over Norway. On apartment ...

103 Pages·2016·10.49 MB·English

Signed.
Every day AF’s employees
leave their impressions all over
Norway. On apartment buildings,
in tunnels, at sea and in cities.
That’sbecause ownership at AF
means more than shares.
At AF we want to sign every detail.
Annual report 201 5
The year 2015
OPERATING AND OTHER REVENUE EARNINGS BEFORE INTEREST EBIT % RETURN ON AVERAGEE CAPITAL Content Key figures
NOK MILLION AND TAXES NOK MILLION EMPLOYED ROACE %
14,000 1,200 9 60
03 ABOUT AF GRUPPEN Year 2015 2014 2013 2012 2011
8
12,000 1,000 50 03 Key figures
7 04 The CEO REVENUES (NOK million)
10,000
800 6 40 08 This is AF Gruppen Operating and other revenue 12,398 9,935 10,127 9,830 7,355
8,000 5 09 Business structure Order backlog 11,183 9,429 10,976 9,074 9,826
600 30
6,000 4 10 Vision and values
4,000 400 3 20 11 AF’s goals for profitable growth EARNINGS (NOK million)
Earnings before interest, tax, depreciation
2,000 200 2 10 12 Group management and amortisation (EBITDA) 1,151 752 679 430 475
1 14 Highlights 2015 Depreciation, amortisation and impairment losses -142 -117 -110 -106 -85
0 0 0 0 Earnings before interest and tax (EBIT) 1,010 635 568 325 390
11 12 13 14 15 11 12 13 14 15 11 12 13 14 15 11 12 13 14 15 16 SUCCESS CRITERIA Earnings before taxes (EBT) 1,004 625 580 318 405
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 18 People and value creation Earnings after tax 778 483 453 225 304
20 Health, safety and the environment (HSE)
22 Corporate social responsibility PROFITABILITY (NOK million)
EBITDA % 9.3 % 7.6 % 6.7 % 4.4 % 6.5 %
26 Risk management
EBIT % 8.1 % 6.4 % 5.6 % 3.3 % 5.3 %
EQUITY RATIO % DIVIDEND PER SHARE NOK LTI1 RATE ABSENCE DUE TO ILLNESS %
EBT % 8.1 % 6.3 % 5.7 % 3.2 % 5.5 %
28 BUSINESS AREAS
Return on equity 43.8 % 34.3 % 38.4 % 19.0 % 28.5 %
30 Civil Engineering
35 9 2.5 5 Return on invested capital (ROIC) 53.6 % 38.7 % 45.7 % 24.8 % 35.9 %
40 Environment
30 8 Economic Value Added 590 320 312 123 195
7 2.0 4 50 Building Cash flow from operations 1 418 86 1 015 194 618
25 60 Property
6
20 5 1.5 3 70 Energy BALANCE SHEET (NOK million)
80 Offshore Total assets 6,243 5,428 5,237 4,919 4,579
15 4 1.0 2 Equity capital 1,820 1,499 1,334 1,202 1,322
3
10 90 SHAREHOLDER INFORMATION Invested capital 1,925 1,814 1,414 1,343 1,452
2 0.5 1
5 1 92 The share Average invested capital 1,942 1,662 1,288 1,334 1,134
100 Corporate governance Equity ratio 29.1 % 27.6 % 25.5 % 24.4 % 28.9 %
0 0 0 0 Net interest-bearing receivables (liabilities) 593 -95 751 204 449
108 Board of Directors’ report
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Debt-to-equity ratio -0.48 0.06 -1.29 -0.20 -0.51
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
124 FINANCIAL INFORMATION
THE SHARE
126 Consolidated annual accounts
Market value (NOK million) 12,929 7,009 5,578 4,578 3,556
127 Income statement
Number of shares 92,680,000 88,724,904 82,332,980 81,384,100 80,814,490
128 Statement of financial position
Earnings per share (NOK) 7,64 5,11 5,26 2,41 3,86
130 Statement of changes in equity Diluted earnings per share (NOK) 7,50 5,09 5,11 2,38 3,86
131 Cash flow statement Dividend per share 5,00 8,00 6,00 4,50 4,50
132 Notes
PERSONNEL
188 Annual accounts AF Gruppen ASA Number of salaried employees 1,378 1,325 1,327 1,314 1,158
189 Statement of the comprehensive income Number of skilled employees 1,652 1,472 1,381 1,356 1,236
190 Statement of financial position Total number of employees 3,030 2,797 2,708 2,670 2,394
LTI rate 1.0 1.1 1.4 1.8 1.5
191 Cash flow statement
Absence due to illness 3.7 % 3.5 % 3.7 % 3.3 % 3.6 %
Design REDINK 192 Notes
PhotoHans Fredrik Asbjørnsen
EXTERNAL ENVIRONMENT
Photo, the boardEllen Johanne Jarli 197 Responsibility statement from the
Carbon footprint 3.3 4.9 4.1 4.3 4.6
Photo, projects AF Gruppen Board of Directors’ and the CEO
Source separation rate – building 84 % 82 % 81 % 79 % 78 %
Cover Varner-building
198 Auditor’s report
Print RK Grafisk Source separation rate – renovation 87 % 82 % 80 % 89 % 75 %
Paper Soporset 130g 200 Definitions Source separation rate – demolition 96 % 96 % 96 % 98 % 97 %
April 2016 201 Addresses Total amount source separated in tonnes 319,225 479,135 408,365 511,110 246,223
See definitions on page 200
AF GRUPPEN ANNUAL REPORT 2015|3
A THE CEO The CEO A
BO This is AF Gruppen BO
U Business structure U
T A Vision and values T A
F AF’s goals for profitable growth F
G Corporate Management Team G
R R
U Highlights 2015 U
P P
P P
E E
N N
CULTURE IS
A KEY PILLAR
In 2015, AF Gruppen’s earnings surpassed a billion kroner
for the first time in the history of the company. For CEO
Morten Grongstad, it is evidence that the company is not
about an individual but is rather a community.
MEET CEO MORTEN GRONGSTAD
The CEO Morten Grongstad is very clear there was a change of CEO leadership at
that the company’s core values are the AF Gruppen.
foundation of AF’s further development. “To me, the change to a new CEO in Oc-
He is convinced that the best results are tober confirms how well-managed AF is,
yet to come. This is in spite of the fact that and it illustrates that the company is not
2015 was not just an anniversary year for about an individual but is rather a com-
AF, but also a record year for earnings, munity. AF Gruppen emerges today as a
revenues and the number of employees. vital 30-year-old, and I hope we will make
“This gives us reason to be proud of our use of this,” says Grongstad.
achievements, while at the same time as In 2016, AF is entering a new strategy
an organisation we are most concerned period, during which AF should be able
about tomorrow’s achievements,” says to obtain the best of two worlds, accor-
Grongstad. ding to the CEO.
In 2015, AF saw its lowest injury rate We must continue to develop in order
ever. The year will nevertheless stand as to meet the competition of tomorrow. At
a reminder of major contrasts. the same time, we must also safeguard
For the first time in history, AF Grup- the foundation that has marked us histo-
pen experienced a first quarter without rically. We are a values-based company
any lost time injuries. Three months la- and our corporate culture is the pillar of
ter, we were given a powerful reminder our good results.
by the fatal accident in connection with Without growth, we cannot manage
the Flesland project in Bergen. Our un- to continue the value performance the
compromising focus on safety requires a company has had:
lot from us every day. HSE work is “fresh “We must therefore continue to culti-
produce”. How good we are at getting vate our curiosity so that we can create
everyone who works in our projects home new opportunities for our employees
safely every day sets the standard for our and solve new challenges for our custo-
safety work. Achieving results must never mers. It is this entrepreneurial spirit that
be at the expense of safety. at one time made us the largest onshore
demolition company, and which subse-
CHANGE AND PRESERVATION quently led us to future-oriented offshore
This anniversary year was also a year when demolition activities. Such opportunities
4| AF GRUPPEN ANNUAL REPORT 2015 AF GRUPPEN ANNUAL REPORT 2015|5
A THE CEO The CEO A
BO This is AF Gruppen BO
U Business structure U
T A Vision and values T A
F AF’s goals for profitable growth F
G Corporate Management Team G
R R
U Highlights 2015 U
P P
P P
E E
N N
“Our competitiveness lies in a clear
will also arise in the future, and we must unique culture, and it is just as alive today
culture, good work methods and then be positioned to seize the market. as when it was anchored in the company
The acquisition of LAB in Bergen and more than 30 years ago. Therefore I am
structures, an unshakable focus on
Målselv Maskin & Transport in Troms in confident that our best results lie ahead
2005 were good examples of how AF can of us – 3,000 proud employees will make
safety, good performance and the best
also grow through acquisitions. sure of it.
employees in the industry.” Our growth will be based on both or- It is the sum total of the thorough, hard
ganic growth through the recruitment work of all the employees of AF that will
and development of new employees, and enable AF Gruppen to deliver a record
CEO MORTEN GRONGSTAD
structural growth through the acquisition result once again,” Grongstad professes.
of well-managed companies. There is a It is therefore satisfying to see that job
strong connection between profitable ownership also materialises in the form of
growth and value creation, and at AF we a record number of shareholders among
are confident that there are also great our employees. It is part of AF’s culture
market opportunities in the future,” says to share the creation of value with our
Grongstad. employees. This is important, and it me-
ans that we and our shareholders work
FINAL RESULT IS THE SUM TOTAL towards the same goals.
OF EVERYTHING
In January this year, we also received the CONFIDENCE IN OUR OWN SKILLS
results of the 2015 employee satisfaction In spite of a strong 2015, the CEO is hum-
survey. It tells us that AF employees are ble at the start of a new year:
proud of their workplace and that they “Our competitiveness lies in a clear cul-
have a high level of job satisfaction. The ture, good work methods and structures,
survey also shows that the company’s an unshakable focus on safety and ethics
clear goals and values are a foundation and the best employees in the industry
for people’s job satisfaction and that they who make sure that the company per-
are something that our employees recog- forms well. These factors are not easy
nise in themselves. to duplicate. Therefore we are entering
“As a leader the results makes me pro- 2016 with confidence in our own compe-
ud and certain that we have a strong fo- titiveness and clear ambitions for further
undation for further growth. We have a growth,” says Grongstad.
6|AF GRUPPEN ANNUAL REPORT 2015 AF GRUPPEN ANNUAL REPORT 2015|7
A THIS IS AF GRUPPEN BUSINESS STRUCTURE The CEO A
BO This is AF Gruppen BO
U Business structure U
T A Vision and values T A
F AF’s goals for profitable growth F
G Corporate Management Team G
R R
U Highlights 2015 U
P P
P FUTUREORIENTED VALUE CREATION OPERATIONAL STRUCTURE P
E E
N N
Curiosity, entrepreneurial spirit and execution capability have made
AF Gruppen Norway’s third largest contractor, and among the best
performing companies on the Oslo Stock Exchange.
OPERATIONAL STRUCTURE
AF is engaged in civil engineering, the environment, building, BUILDING
property, energy and offshore, and, since its establishment in AF is one of the largest players in the area of residential, com-
1985, AF has found new solutions to complex challenges with mercial and public buildings. AF’s experience spans the entire CIVIL ENGINEERING ENVIRONMENT BUILDING PROPERTY ENERGY OFFSHORE
the help of employees with a go-ahead spirit and determination. value chain from development and planning to building. AF is
The entrepreneurial spirit at AF is about the ability to create also a leader in renovation. AF delivers services to clients ran-
AF Anlegg AF Decom AF Bygg Oslo AF Eiendom AF Energi & AF Offshore Decom
value and realise profitable growth. Our execution capability is ging from small companies with a single assignment to large JR Anlegg Rimol Miljøpark AF Byggfornyelse AF Projektutveckling Miljøteknikk AF Decom Offshore
characterised by strong and robust teams that focus on progress, private and public clients with a long-standing relationship. AF AF Arctic Jølsen Miljøpark AF Bygg Østfold Boligenergi UK Ltd
delivery and the creation of value with empathy and dialogue. cooperates closely with customers to find efficient solutions Målselv Maskin & Härnösand AF Bygg Sør Miljøbase Vats
AF has demonstrated an entrepreneurial spirit and execution that satisfy future environmental and energy requirements. The Transport Byggreturer AF Bygg Rogaland AF Offshore Mandal
capability since it was established. This has made AF a company Building business area is established in Norway and Sweden. Pålplintar Strøm Gundersen AF Offshore
that looks for future-oriented ways of creating value. Consolvo AeronMollier
AF is involved in everything from the demolition of oil plat- PROPERTY Haga & Berg Aeron Energy Tech. Co
Entreprenør AF Offshore Aeron
forms to major building and civil engineering projects. In ad- AF develops residential and non-residential buildings for its
Thorendal Pte. Ltd.
dition, AF has created Scandinavia’s largest centre of expertise own account. Most of the projects are located geographically
LAB
in the area of energy efficiency. A broad range of services and where AF has its own contracting services. AF cooperates clo-
LAB Entreprenør
many centres of expertise provide career opportunities across sely with other players in the industry, and the development Åsane Byggmester-
the Group. Competent employees are given responsibilities at projects are often organised as joint development companies. In forretning
an early stage, and there are many opportunities for personal this way we benefit from each other’s expertise, while reducing FAS
development through AF’s many projects. AF Gruppen has seen project-specific risk. The Property business area is established AF Bygg Sverige
strong, profitable growth, particularly over the last decade. in Norway and Sweden. AF Bygg Göteborg
AF Bygg Syd
CIVIL ENGINEERING ENERGY
AF has the experience and expertise required to carry out all AF Gruppen provides smart, energy-efficient solutions for build-
types of small and simple to large and demanding civil engi- ings and industry. With extensive industrial expertise, AF offers GEOGRAPHIC PRESENCE
neering projects. AF carries out projects related to roads and advisory and implementation services in the areas of energy
railways, port facilities, foundation work and power and energy, conservation and the production of energy, which gives custo-
as well as onshore facilities for oil and gas. Our customers are pri- mers substantial cost reductions and reduces the environmen- CIVIL ENGINEERING ENVIRONMENT BUILDING PROPERTY ENERGY OFFSHORE
marily public sector enterprises and large energy and industrial tal impact. The Energy business area is established in Norway.
companies. The Civil Engineering business area is established
in Norway and Sweden. OFFSHORE Norway, including Norway Norway Norway Norway Norwegian and
Svalbard Sweden Eastern Norway Eastern Norway British continental
AF has considerable and varied activities aimed at the oil and
ENVIRONMENT gas industry, with core areas such as the removal, dismantling Sweden Kristiansand Kristiansand shelf
Stockholm region Stavanger Stavanger Norway
AF is Europe’s leading contractor for the demolition and environ- and recycling of decommissioned offshore installations, rig
Bergen Bergen UK
mental clean-up of buildings, industrial plants and petroleum services, M&M contracts for onshore installations, being a total
Sweden Sweden China
installations. AF offers solutions that meet the customers’ envi- supplier of HVAC plants and offshore and marine EPCIC projects. Southwest Coast Southwest Coast Singapore
ronmental challenges. The company also has solid expertise in AF has a modern reception facility at Vats near Haugesund for
areas such as blasting, dredging, handling contaminated bulk the environmental clean-up of petroleum installations. The
material and removing shipwrecks. The Environment business Offshore business area is established in Norway, the UK, China
area is established in Norway and Sweden. and Singapore.
8| AF GRUPPEN ANNUAL REPORT 2015 AF GRUPPEN ANNUAL REPORT 2015|9
A VISION AND VALUES AF’S GOALS FOR PROFITABLE GROWTH The CEO A
BO This is AF Gruppen BO
U Business structure U
T A Vision and values T A
F AF’s goals for profitable growth F
G Corporate Management Team G
R R
U Highlights 2015 U
P P
P A VALUESBASED COMPANY VALUE GROWTH P
E E
N N
AF aims to continuously create value, which will enhance the company’s attractiveness
to shareholders and investors. This will give us freedom of action in our business and
opportunities for the development of our employees. AF seeks opportunities to leverage
its core competencies and grow its business by structuring and managing its operations to
deliver value to stakeholders .
VISION CORE VALUES PROFITABILITY FINANCIAL STRENGTH DIVIDEND HSE
Clearing up the past, building for the future. AF Gruppen is a values-based company with a firmly anchored
set of core values: OBJECTIVE OBJECTIVE OBJECTIVE OBJECTIVE
By focusing on the environment, energy and recycling, we will AF’s goal is to have a better AF’s financial strength target AF’s dividend policy is to AF’s objective is to perform
safely remove and eliminate materials, ground and energy Reliability operating margin and a bet- is to achieve a minimum equ- provide shareholders with a all our operations without
solutions that are harmful to the environment. Freedom to exercise entrepreneurship and discipline in relation ter return on invested capital ity ratio of 20 per cent and competitive dividend yield. injuries, with an LTI rate of
to goals and requirements than comparable companies. to have sufficient liquidity Dividends will be paid semi- zero and absence due to ill-
Through the use architecture, materials and energy solutions, Thoroughness and hard work to cover the Group’s current annually. The dividend shall ness of less than 3.0 per cent.
AF Gruppen will create solutions that contribute to a better Persistence in achieving profitable growth AF’s target is to have a return needs at any given time. be stable and ideally rise in
environment, reduce waste and reduce the consumption of Management through presence and involvement on invested capital grea- line with the earnings perfor- AF’s partners are subject to
non-renewable sources of energy. ter than 20 per cent and an mance. AF Gruppen’s inten- the same requirements as AF
ENTREPRENEURIAL SPIRIT operating margin above 5 tion over time is to distribute itself, and AF includes them
MISSION AF has exhibited its power and expertise in solving complex per cent. a minimum of 50 per cent in its LTI rate target.
AF’s mission is to be an industrial group that delivers value by challenges through a number of contracts. Our entrepreneurial of the profit for the year as a
forming the future through contracting, energy and environ- spirit is distinguished by a willingness to think differently and dividend.
mental services. The company has an uncompromising attitude to seek better, ways of creating value.
towards safety and ethics.
RESULTS IN 2015 RESULTS IN 2015 RESULTS IN 2015 RESULTS IN 2015
AF achieved an operating AF’s equity ratio was 29.1 In 2015, AF paid a total divi- AF achieved an LTI rate of 1.0
margin of 8.1 per cent in 2015. per cent at the end of 2015, dend of NOK 8.00 per share and absence due to illness of
Return on invested capital and the Group had unutili- for the 2014 financial year. 3.7 per cent. This is on par with
(ROIC) was 53.6 per cent. sed credit and loan facilities Earnings per share in 2014 the best safety results in the
of NOK 2,073 million as at 31 was NOK 5.11. Earnings per contractor industry.
December 2015. share in 2015 was NOK 7.64.
The Board is proposing a divi-
dend of NOK 5.00 per share
for payment in the 1st half of
2016 to the General Meeting
on 12 May. The dividend for
8.1 % 1.0
payment in the 2nd half of
2016 will be announced when
OPERATING MARGIN the results for the 3rd quarter LTI RATE
of 2016 are presented.
53.6 % 29.1 % NOK 5.00* 3.7 %
RETURN ON EQUITY RATIO DIVIDEND PER SHARE ABSENCE DUE TO ILLNESS
INVESTED CAPITAL *Dividend due for payment in
1st half-year 2016
10|AF GRUPPEN ANNUAL REPORT 2015 AF GRUPPEN ANNUAL REPORT 2015|11
A Corporate Management Team The CEO A
BO This is AF Gruppen BO
U Business structure U
T A Vision and values T A
F AF’s goals for profitable growth F
G Corporate Management Team G
R R
U Highlights 2015 U
P P
P CORPORATE MANAGEMENT TEAM P
E E
N N
HENNING OLSEN ANDREAS JUL RØSJØ SVERRE HÆREM AMUND TØFTUM ARILD MOE MORTEN GRONGSTAD BÅRD FRYDENLUND EIRIK WRAAL
(1978) (1980) (1965) (1978) (1965) (1975) (1968) (1979)
Executive Vice President Executive Vice President Executive Vice President/CFO Executive Vice President Executive Vice President CEO Executive Vice President Executive Vice President
Olsen is responsible for the Røsjø is responsible for the Hærem has been Executive Tøftum is responsible for the Moe is responsible for the Grongstad was recruited by Frydenlund is responsible Wraal is responsible for the
Building business area. He Property and Energy busi- Vice President/CFO at AF Offshore business area. He Civil Engineering business AF in 2012 as EVP Property for Personnel and Organi- Environment business area.
comes from the position as ness areas. He has held since 2007. He has previ- comes from the position as area. He has held various and was appointed as the sation, IT and Machinery. He was formerly the of head
head of AF Eiendom and various managerial positions ously held the position of project director at AF Offshore managerial posts at AF and CEO in 2015. He was formerly He is a graduate economist of AF Decom and has been
was formerly the finance at AF and has been employed CFO at Fjord Seafood ASA Decom. He has experience has been employed by the the CEO of Fornebu Utvikling and Master of Management with the company since
director at AF Bygg Oslo. He by the company since 2007. and VP Finance at Dyno. from business development Company since 1990. Moe and has broad managerial from BI Norwegian Business 2004. He has held various
has held various positions Røsjø holds a Master of Hærem holds a Master of and various operation roles holds a degree in construc- experience in property de- School, in addition to study- operation roles in AF’s
in finance and accounting Science degree in Business Science degree in Business in Civil Engineering and Off- tion and civil engineering velopment from Orkla Eien- ing law at the University of environmental activities. He
and has been with AF since from BI Norwegian Business from the BI Norwegian Bu- shore at AF. He is a chartered from Oslo University College dom, among other compani- Oslo. He has been with AF is a chartered engineer from
2010. Olsen holds a Master of School. He owns 16,155 siness School. Hærem owns engineer from the Norwegian and a degree in business es. Grongstad holds a Master since 2000. He owns 97,815 the Norwegian University of
Science degree in Business shares and 26,877 options in 169,290 shares and 31,372 University of Science and economics from the Uni- of Science degree in Business shares and 18,144 options Science and Technology. He
from the BI Norwegian Busi- AF Gruppen ASA as at options in AF Gruppen ASA Technology and has worked versity of Agder. He owns from BI Norwegian Business in AF Gruppen ASA as at owns 8,170 shares and 17,233
ness School. He owns 6,934 31 December 2015. as at 31 December 2015. at AF since 2005. He owns 234,196 shares and 30,764 School. Grongstad owns 31 December 2015. options in AF Gruppen ASA
shares and 11,911 options in 40,053 shares and 12,126 options in AF Gruppen ASA 113,537 shares and 30,521 as at 31 December 2015.
AF Gruppen ASA as at 31 options in AF Gruppen ASA as at 31 December 2015. options in AF Gruppen ASA
December 2015. as at 31 December 2015. as at 31 December 2015.
12|AF GRUPPEN ANNUAL REPORT 2015 AF GRUPPEN ANNUAL REPORT 2015|13
A HIGHLIGHTS 2015 Konsernsjefen A
BO Dette er AF Gruppen OB
U Virksomhetsstruktur U
T A Visjon og verdier T A
F AFs mål for lønnsom vekst F
G Konsernledelsen G
R R
U Høydepunkter 2014 U
P P
P HIGHLIGHTS 2015 P
E E
N N
Solid contributions from all the business areas resulted in record earnings in 2015.
Persistence in achieving profitable growth also marked the past year.
EARNINGS SURPASSED A BILLION SATISFIED EMPLOYEES ACQUISITION IN BERGEN
AF Gruppen surpassed a milestone in 2015 AF Gruppen conducted an employee sa- In March 2015, AF completed the acquisi-
and delivered earnings before tax of more tisfaction survey at the end of 2015. The tion of 70 per cent of the shares in LAB AS.
than NOK 1 billion for the first time in 2015. results showed record-high satisfaction The acquisition included LAB AS’s shares
This is the best earnings in the history of among the employees of AF. In addition, in the subsidiaries LAB Entreprenør AS,
the company, measured both in monetary the survey showed that job satisfaction Åsane Byggmesterforretning AS, Funda-
terms and as a percentage. Earnings before was high and that the employees were mentering AS and LAB Eiendom AS. LAB
tax were NOK 1,004 million, and the profit proud to work for AF Gruppen. 83 per cent AS reported revenues from operations of
margin was 8.1 per cent. All six business of the employees are satisfied with AF as NOK 1,940 million for 2015.
areas delivered very good results for 2015. an employer.
1,004 83 % 1,940
NOK million Satisfied NOK million
ACQUISITION IN TROMS REVENUE GROWTH LOW INJURY RATE
In June, Målselv Maskin & Transport AS AF Gruppen’s revenues in 2015 came HSE work represents one of the most im-
became part of AF Gruppen, since AF ac- in at NOK 12.4 billion, an increase of 25 portant pillars of our corporate culture.
quired 70 per cent of the shares in the per cent compared with 2014 revenues. Safety shall be the first priority for eve-
company. Målselv Maskin & Transport The high growth rate is greatly due to rything we plan and execute. Structu-
AS is the largest machinery contrac- the acquisitions in Bergen and Troms, red and continuous work with HSE has
tor in Troms, and the company repor- but ¼ is organic growth. AF Gruppen yielded results, primarily in the form of
ted revenues of NOK 186 million in 2015. has had an average annual revenue fewer lost time injuries. AF Gruppen’s
growth of 14 per cent since listing in 1997. LTI rate was 1.0 (1.1) in 2015. The goal
of an LTI rate of 0.0 remains steadfast.
186 25 % 1.0
NOK million Growth LTI rate
14| AF GRUPPEN ANNUAL REPORT 2015 AF GARFU GPRPUEPNP AENNN ÅURASLR ARPEPPOORRTT 22001155||1155
Signed
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C
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IT
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IA
16| AF GRUPPEN ANNUAL REPORT 2015 AF GRUPPEN ANNUAL REPORT 2015|17
PEOPLE AND VALUE CREATION People and value creation
Health, safety and the environment (HSE)
Sustainable entrepreneurship
Risk management
PROFITABLE GROWTH TOGETHER WORKING ENVIRONMENT COMMITTEE
Morten Grongstad CEO
Arild Moe Executive Vice President for the Civil Engineering business area
Henning Olsen Executive Vice President for the Building business area
AF Gruppen’s 3,000 employees contribute every day to the growth and development of the Bård Frydenlund Vice President Human Resources
Arne Sveen Senior Employee Representative / Safety Delegate
company. Profitable growth requires motivated employees who assume responsibility – both
Arnfinn Hanson Senior Employee Representative / Safety Delegate
for their little part of the whole and the overall result.
S Håvard Breivik Employee Representative S
U U
C C
C Steinar A. Johansen Employee Representative C
E E
S S
S S
C C
R R
IT IT
E E
R R
IA IA
The key to the success of AF Gruppen lies in our employees’ is recognised, valued and lived up to by our employees. At AF, we ESS: “ALL IN ALL, I AM SATISFIED WITH AF GRUPPEN AS MY EMPLOYER”
willingness and ability to do the heavy lifting together. Develo- are clear about what attributes should be emphasised: (SCALE OF 1-6)
ping the knowledge and expertise of our employees is the most
profitable investment we make at AF, because it enables us to Observance of the Code of Conduct and core values
influence our own success. Employees with ambitions and the Being business-oriented
desire to realise their own career have many opportunities at AF. Analytical abilities
The development of employees takes place by offering exciting Ability to make decisions and take initiative
tasks and duties with responsibility, a dedicated AF Academy and Being leaders and motivators
6
external further education.
AF Gruppen’s owners and management have always wanted ROBUST ORGANISATION
the employees to share in the growth. AF Gruppen’s goal since AF is engaged in the project industry and is subject to substan-
the start has been that the employees should not only feel ow- tial risk. The company focuses on robust organisation at all levels
nership of their company, but actually have ownership. The idea with the aim of establishing good project teams with employees
of owning something together will always help bear the brunt. that possess complementary skills in the areas of management, 5
It creates loyalty and commitment, which in turn results in the technical expertise and personal attributes. The resources are
creation of greater value. Many employees have taken advantage organised close to the production, where the managers have a
of this opportunity, and today every third employee owns AF sha- great deal of influence.
res – with a combined value of close to NOK 2 billion.
EMPLOYEE OWNERSHIP
ATTRACTIVE WORKPLACE It has been a goal ever since the establishment of AF in 1985 that 4
Management of human resources has high priority at AF, and it employees should be given an opportunity to become co-owners
is therefore very satisfying that we have succeeded in contribu- of the company. The idea is that as many employees as possible
ting to the creation of a good, inclusive working environment. should be able to take part in the increase in value resulting from
The employee satisfaction survey that was conducted in 2015 the common creation of value and development of the com-
shows that our employees are very happy, have a high degree pany. Employees are given an opportunity to purchase shares
3
of job satisfaction and are proud to work for AF. The results are in the company at a discounted price each year. In addition, the
the best we have ever achieved at AF, and they are very good in company launched a three-year option programme for the third
relation to comparable industries. Our employees are our best time in 2014 that close to 1,500 employees participate in. AF em-
ambassadors in the battle for new blood. AF engages in active ployees own approximately 15 per cent of the company’s shares.
recruitment at colleges and universities, and there is a lot of inter-
est in working for the company. This provides a good foundation RELATIONSHIP BETWEEN MANAGERS AND EMPLOYEES 2
and many opportunities to find the right people to help develop AF has a well-functioning employee representative structure and
the company further. safety organisation, which ensure employees the right to partici-
In 2015, around 1,200 employees participated in courses through pate in decisions concerning the working environment. There is
the AF Academy. AF focuses on developing its own managers. a separate Works Council and Working Environment Committee,
Around 80 per cent of the current managers have been recrui- and the company has representatives from both salaried em-
ted internally. Managers at AF should achieve results by setting ployees and hourly-wage employees on the Board of Directors. 1
a good example and building a culture in which orderly conduct Industry average* 2009 2011 2013 2015
*Source: Rambøll
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