Monberg & Thorsen A/S : Interim financial report – First half 2017

17 August 2017

Announcement No 13, 2017

Interim financial report - First half 2017

At its meeting today, the Board of Directors of Monberg & Thorsen A/S approved the interim financial report for the period 1 January - 30 June 2017. The interim financial report has not been audited or reviewed by the company's auditor.

Questions relating to this announcement should be directed to Anders Heine Jensen, Chairman, on telephone [phone].

The announcement can also be viewed at www.monthor.com

This announcement is available in Danish and English. In case of doubt, the Danish version shall prevail.

MONBERG & THORSEN A/S CVR 12 61 79 17

LEI 529900NA1V21KR5S7498

Ringager 4C, 2nd Floor, Right 2605 Brøndby

Denmark

Comments to the interim financial report for the first half of 2017

The first-half operating result was in line with expectations.

The share of MT Højgaard A/S's net result for the period was a loss of DKK 6 million, compared with a loss of DKK 14 million in the first half of 2016.

Administrative expenses in Monberg & Thorsen A/S were in line with expectations.

The outlook for the operating result for 2017 as announced in the interim financial report for the first quarter of 2017 is reaffirmed.

The accounting policies are unchanged from the 2016 annual report.

Financial highlights

DKK million	H1				Year 2016
	2017		2016
Income statement	-6		-14		-6
Share of profit/(loss) after tax and non-controlling interests in jointly
controlled entities,
MT Højgaard (46%)
Administrative expenses in Monberg & Thorsen	-1		-5		-6
EBIT	-7		-19		-12
Net financials	2		2		4
Profit/(loss) before tax	-5		-17		-8
Tax	0		0		0
Net profit/(loss) for the period	-5		-17		-8
Balance sheet	77		183		183
Interest-bearing assets
Interest-bearing liabilities	0		0		0
Invested capital	428		424		434
Equity	505		607		616
Balance sheet total	507		609		619
Cash flows	2		-2		1
From operating activities
For investing activities **	106		39		30
From financing activities	-108		-36		-36
Net increase (decrease) in cash and cash equivalents	0		1		-5
** Portion relating to investments in property, plant and equipment	0		0		0
Financial ratios (%)	-2%	*	-4%	*	-3%
Return on invested capital (ROIC)
Return on equity (ROE)	-1%	*	-4%	*	-1%
Equity ratio	100%	100%	99%
Share ratios (DKK per DKK 20 share)
Earnings per share (EPS)	-1	-5	-3
Book value	141	169	172
Market price	205	323	230
Market price/book value	1.5	1.9	1.3
Market capitalisation (DKK million)	735	1,158	825

* not converted to full-year figures

The interim financial report has been prepared in accordance with IAS 34 Interim Financial Reporting and Danish disclosure requirements for interim financial reports of listed companies.

Financial ratios have been calculated in accordance with 'Recommendations & Financial Ratios 2015' published by the Danish Finance Society. Financial ratios are defined in the 2016 annual report.

Management's review Income statement

MT Højgaard A/S's activity and financial performance in the first half was slightly ahead of last year and in line with expectations. EBIT was a profit of DKK 16 million, compared with a loss of

DKK 19 million in the first half of 2016, while the operating margin was 1.1% compared with -0.6% in the first half of 2016. The development reflects a generally higher level of activity and a positive effect from the transfer of the contract for interior works on stations on Metro Cityringen to CMT.

A detailed account of the development in the jointly controlled entity MT Højgaard, in which Monberg & Thorsen has a 46% ownership interest, is given in Stock Exchange Announcement No 12, which has just been released and to which reference is made.

The parent company's EBIT was in line with expectations.

Statement of cash flows

Operating cash flow for the period was an inflow of DKK 2 million, primarily relating to expenses and value adjustments on the securities portfolio in Monberg & Thorsen A/S. The cash inflow from investing activities related to value adjustments and the redemption and sale of corporate bonds.

The portfolio of listed corporate bonds amounted to DKK 63 million. Cash and cash equivalents in Monberg & Thorsen amounted to DKK 14 million, including an amount of DKK 2 million that is still lodged as security in respect of the guarantees provided in connection with the divestment of Dyrup.

Total financial resources were slightly lower than at the end of 2016. Financial resources are still considered to be satisfactory.

Balance sheet

At DKK 507 million, the balance sheet total was slightly lower than in the first half of 2016 and at

31 December 2016, mainly reflecting the payment of dividend. The equity ratio was 100% compared with 99% at 31 December 2016.

Accounting policies

The interim financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and additional Danish disclosure requirements for interim financial reports of listed companies. The accounting policies are unchanged from the 2016 annual report.