THIS IS
STRØMBERG GRUPPEN

CEO’s introduction

Last year was a good year for Strømberg Gruppen. All the business areas delivered good results. The group recorded a profit of NOK 80 million, which is an increase of approximately NOK 10 million compared with 2014. The Board is very pleased with the result, and I would like to thank everyone who contributed to it in 2015.

We expect 2016 to be a positive year, despite a lower level of activity in shipping and in the oil sector. Trucknor AS and Nordic Last og Buss AS both received a record-high number of orders for new trucks going into 2016. Trucknor AS also has orders for 300 new buses to be delivered during the same period. It is important to get off to a good start in 2016.

The group must expect a strong demand for changes and improvements in the coming years, both from customers and suppliers. Volvo has already made extensive changes, which entails that we must find new ways of working. This means that we must focus on continuous improve-ment in all parts of the organisation. Our strategic goal must be to become the ‘best’ in all our business areas. I hope that all our employees see the changes that must be implemented as positive. Change is not always easy to accomplish, but with the resources we have in the group, we have all it takes to succeed in this work.

We have also completed two important acquisitions in 2015. Arka AS bought 50% of the shares in Nor Slep AS. The company is based in Sandefjord and has 22 employees. Towards the end of the year, Trucknor AS bought 100% of the shares in Nordic Last og Buss AS. The company has 14 workshops in Northern Norway, and approximately 200 employees. I would like to take this opportunity to welcome all our new employees to Strømberg Gruppen.

The new acquisitions were part of our strategy to strengthen our bodywork and Volvo-related activities. We are now market leader in Norway in both business areas.

The property business also developed in a positive direction in 2015. The company has an occupancy rate of 100%, which is very good. The biggest project that was completed in 2015 was the alteration of the facility at Heiane 4, where the lessee is the Norwegian Public Roads Administration. The project was completed in an excellent manner. In addition, work was initiated on two new buildings that are scheduled for handover in June 2016 and May 2017. We look forward to the opening of these buildings. Strømberg Gruppen is going to face new challenges in 2016. We are convinced that the group’s employees will handle these challenges in the best way possible.

Per Gunnar Strømberg Rasmussen
CEO

The group

Strømberg Gruppen is one of Bergen’s biggest businesses in terms of turnover. Its core activities consist of dealership activities and workshop operations for Volvo trucks and buses, property development, the manufacturing and sale of truck bodywork, road transport equipment and commodities.

Investments and shipping are other business areas. The company’s objective is to maintain its position as a leading Volvo truck and bus dealer.

Strømberg Gruppen AS was formed in 1998 and has since expanded its business considerably through the acquisition of Volvo dealers and workshops, making new investments in property, becoming a Renault dealer and engaging in shipping activities.

In 2015, the Group had a turnover of NOK 1,385.7 million and a profit after tax of NOK 57.8 million, compared with a profit after tax of NOK 51.8 million in 2014.

The results are affected by the Group’s minority interests, so that the actual result was a profit of NOK 54 million in 2015, compared with NOK 53.1 million in 2014.

Core values

Business integrity, honesty and reliability are at the core of Strømberg Gruppen’s values.

We want both our internal and external activities to be characterised by openness and trust.

Our corporate policy comprises employees, quality and the environment. Our employees are our most important resource, and we work continuously to raise competence and increase motivation for each individual employee.

We shall achieve the goals of our quality policy through customer orientation, leadership, employee participation and process-orientation. Health, safety and the environment are among our core values, and our environmental work shall be subject to continuous improvement.

In 2009, we drew up an internal document on our norms, values and policy. Since then, we have endeavoured to implement these key values in our business.

Areas of activity

Strømberg Gruppen largely comprises six areas of activities that include bodywork, truck and bus dealerships, commercial property, shipping, sand and financial investments.

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The subsidiaries:

Bodywork

Our bodywork business is represented by Arka AS in Os municipality (south of Bergen), Ømi AS in Sola near Stavanger, Rolands AS at Mjåvann outside Kristiansand and Nor Slep AS in Sandefjord.

These companies make bodywork for trucks and distribution vehicles and import and sell cranes and other relevant equipment. They have acquired a high level of expertise and carry out repairs to and service on their products.
Nor Slep AS became part of the Group in 2015 through the acquisition of 50% of the shares in the company. The rest of the shares are owned by the old shareholders.

Arka AS has offices in Oslo and an owner-ship interest in Transrep AS, which performs repairs, services and builds small bodywork at the same address. The Group has an ownership interest of 50% in Transrep AS.

The bodywork business had a turnover after elimination of approximately NOK 191.1 million in 2015.

Volvo dealership

The dealership business consists of the companies Trucknor Sogn og Fjordane AS, Trucknor Førde AS, Trucknor Hordaland AS, Trucknor Haugesund AS, Trucknor Rogaland AS, Trucknor Kristiansand AS, Trucknor Arendal AS and Nordic Last og Buss AS, in addition to the part-owned companies Trucknor Setesdal AS, Trucknor Firda AS and Mandal Last og Buss AS.

The companies that are part of the Volvo dealership system are located in the three northernmost counties in Norway and from Sandane in Sogn og Fjordane county, along the coast to the town of Arendal in Southern Norway.
In autumn 2015, Trucknor bought 100% of the shares in the company Nordic Last og Buss AS, which has 14 facilities in the counties of Nordland, Troms and Finnmark.

The Volvo dealers had a total turnover after elimination of around NOK 1,121 million in 2015.

Commercial property

The property business owns, runs and manages the Group’s real property.

At the turn of the year, the property portfolio included buildings with a total floor space of approximately 85,000 square metres. Considerable resources have been dedicated to upgrading and new investments in recent years.
At the end of 2015, our property business consisted of the companies Rasmussen Eiendom AS, Fjøsangerveien 68 AS,
Rasmussen Eiendom Åsane AS,Heiane 4 AS, Heiane 4B AS,Fjøsangerveien 70A AS, Kanalveien 11 AS, Sandsliåsen 59 AS, SIAS Eiendom AS, Blakstadheia Næringspark 1 AS, Drift og Eiendomsforvaltning AS,Aluhak Eiendom 2 AS and Kanalveien Næringsbygg AS.

In March 2015, Rasmussen Eiendom AS completed alterations to Raglamyrveien 32 in Haugesund, which Trucknor Haugesund AS rents. The company Heiane 4 AS completed the alteration of the facility at Heiane 4 in September 2015. The lessee is the Norwegian Public Roads Administration.

In addition, construction of a new building for Ømi AS at Orstad in Klepp municipality started in summer 2015 through the company Aluhak Eiendom AS, and in autumn, work started on a new building at Kanalveien 7 in Bergen through the company Kanalveien Næringsbygg AS. Our property business had a turnover after elimination of approximately NOK 63.8 million in 2015. It is one of two strategic investment areas in the Group. All the buildings are fully occupied.

Shipping

The business area was established in 2006 and further developed over the following years. The shipping industry is currently suffering under the uncertain demand situation in Europe.
In 2015, the market was still characterised by the uncertainty in the global economy. The low demand for tonnage experienced in the period 2009–2013 continued in 2015. All the company’s vessels have been in operation throughout the period. The Group reduced its exposure to shipping in 2015 by selling some of its shipping shares. The Group has no shipping obligations other than the capital invested in the different companies.

Sand

The Group took over as majority owner of the company Stormo Invest AS in 2011. The business area is under development and will in future produce different types of sand products. The company’s sand deposit is among the biggest regulated deposits in the Nordic region.

Financial investments

Advanced Asset Management AS manages the Group’s liquid investments. In recent years, the Group has built a portfolio of liquid securities with a moderate risk profile. In the time ahead, additional capital will be added to the portfolio in order to build up the business area and make it an integral part of the Group.

The Board of directors in 2015

• Dagfinn Heradstveit
– chairman of the board
• Per Gunnar Strømberg Rasmussen
– CEO and board member
• Svein Andreas Strømberg Rasmussen
– board member
• Rolf Arne Rasmussen
– board member
• Eldar Sætre
– board member