1

AARSLEFF GROUP

2

Aarsleff Group

Aarsleff is an international construction group of companies listed on the Copenhagen Stock Exchange.

• Revenue in Denmark DKK 7.1 billion• Revenue abroad DKK 3.2 billion• Total revenue DKK 10.3 billion

Independent, competitive business units with a focus on specialisation.

A high degree of cooperation between the business units with the aim to reduce costs by integrating activities on the job site. We call this “one company”, meaning that we seek and exploit synergies.

This way, we implement large and complex infrastructure projects and buildings.

3

We specialise in

• harbours• railways• offshore wind farms• tunnels, bridges and roads

We have international industrialised activities within:

• renewal of underground pipelines• foundation works

We have 4,932 employees in Denmark and approx. 20 other countries. -50

0

50

100

150

200

250

300

350

400

450

500

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

Total revenue in DKK million Profit before interest in DKK million

2014

/15

Development in revenue and profit

4

5

Istak hf., Iceland

• A civil engineering and construction company in Iceland with a history of more than 50 years

• Was started and owned by the Danish construction company Pihl until 2013 when Pihl went bankrupt

• Istak has its roots in hydropower construction e.g. building tunnels and dams and installing turbines and generators

• Has evolved into general civil engineering work and construction of buildings

• HascontributedwithstableandgoodprofitstotheDanishparentcompanyforalong period of time

• Thencamethefinancialcrisis.

6

Istak during the recession in Iceland following the Icelandic financial crisis

• Before 2007/2008 Istak had an annual revenue of approx. DKK 600-800 million

• Istak had foreign activities in Greenland (hydropower), Norway (oil/gas) and in the Caribbean (harbours)

• During the recession from 2008 to 2011, the level of activity declined strongly and thefinancialresultswereeroded

• After Pihl’s bankruptcy in August 2013, Landsbankinn took over the shares from the trustees

• As of 15 May 2015, Aarsleff bought the shares from Landsbankinn

• Why?

7

8

Aarsleff’s business rationale for taking over the shares of Istak

• Aculturalfitandcommonbasicvalues

• Synergies in Greenland

• Synergies in Iceland with the aim to regain organisational power in an economy that has been turned around

• Public and private investments in infrastructure are rising ◦ newhospitalinReykjavík◦ enlargementofKeflavíkAirport◦ newhydropowerplants◦ newhotelsinReykjavík◦ roadsandtunnelsbackonamorenormalscale◦ investmentsinaluminiumproduction–butthealuminiumpricesarestilllow

PPP’s are being considered but they have a very long preparation time• Lava Express• SundabrauttunnelnearReykjavík

9

Lava Express

• Route length is 49 km, 14 km thereof in the tunnel.• DoubletracksalongthesurfacefromKeflavíktoHafnarfjörður.• SingletrackthroughatunnelfromStraumsvíktoReykjavíkcitycentre.• Total cost approx. 1 billion EUR

10

The present situation in Iceland today, seen from a contractors view

Basics

• An open, economy with a lot initiatives• An open and business minded culture• A well educated work force and a good work moral• Efficientpublicinstitutions

Specifics

• Optimism and creativity• Levels of investments in public and private infrastructure back on a normal level