Monberg & Thorsen A/S : Quarterly announcement – First quarter 2017

10 May 2017

Announcement No 7, 2017

Quarterly announcement - First quarter 2017

At its meeting today, the Board of Directors of Monberg & Thorsen A/S approved the individual financial statements for the period 1 January - 31 March 2017. The financial statements have not been audited or reviewed by the company's auditors.

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

The quarterly announcement is also available 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 DK - 2605 Brøndby

Comments to quarterly announcement - First quarter 2017

Monberg & Thorsen's sole activity is its 46% ownership interest in the jointly controlled entity MT Højgaard A/S. A detailed account of the development in the quarter under review is given in the interim financial report of MT Højgaard in Stock Exchange Announcement No 6, which has just been released and to which reference is made.

Financial highlights for Monberg & Thorsen:

DKK million	Q1		Year 2016
	2017	2016
Income statement	-11	-10	-6
Share of profit/(loss) after tax and non-controlling interests in
jointly controlled entity,
MT Højgaard (46%)
Administrative expenses in Monberg & Thorsen	-1	-2	-7
EBIT	-12	-12	-13
Net financials	2	0	4
Profit/(loss) before tax	-10	-12	-9
Tax	0	0	0
Net profit/(loss) for the period	-10	-12	-9
Balance sheet	423	429	433
Investment in jointly controlled entity, MT Højgaard
Interest-bearing assets	184	220	183
Invested capital	424	429	434
Equity, start of period	616	663	663
Net profit/(loss) for the period	-10	-12	-9
Other comprehensive income in jointly controlled entity	1	-3	-3
Other	0	0	0
Dividends to shareholders	0	0	-35
Equity, end of period	607	648	616
Financial ratios (%)	-3% *	-3% *	-3%
Return on invested capital (ROIC)
Return on equity (ROE)	-2% *	-3% *	-1%
Equity ratio	99%	99%	99%
Share ratios (DKK per DKK 20 share)
Earnings per share (EPS)	-3	-3	-3
Book value	170	181	172
Market price	256	376	230
Market price/book value	1.5	2.1	1.3
Market capitalisation (DKK million)	916	1,348	825

* not converted to full-year figures

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.

Operating review - First quarter 2017

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

The share of MT Højgaard's net result for the period was a loss of DKK 11 million, compared with a loss of DKK 10 million in the first quarter of 2016. This decline mainly reflected the relatively low revenue and lower use of capacity as a consequence of standstill in the interior works at the Copenhagen metro stations and higher bidding costs for a few large future projects.

Monberg & Thorsen's financial resources are considered satisfactory, and equity stood at DKK 607 million, corresponding to an equity ratio of 99%.

Outlook for 2017

The MT Højgaard Group maintains the outlook of revenue of around DKK 7,2 billion and EBIT in the range of DKK 150-200 million in 2017. This will provide an EBIT margin below the desired 5%.

Monberg & Thorsen's share is 46% of the MT Højgaard Group's result after tax and non- controlling interests. From this should be deducted operating expenses in Monberg & Thorsen, which are now expected to be around DKK 4 million, compared with previously DKK 7 million.

The projections concerning future financial performance involve uncertainties and risks that may cause the performance to differ materially from the projections. Significant risks are described in the 'Risk factors' section in the 2016 annual report. Significant risks and uncertainties remain unchanged compared with the description in the annual report. The outlook is based on relatively stable interest rate and exchange rate levels.