ANNUAL REPORT 2015

Creating digital advantage for tomorrow’s leaders

Digital transformation provides unprecedented opportunity for our customers. In 2015 we strengthened relationships to help

our clients seize the moment. The strategy has paid off with new contracts, projects and innovations laying the foundation

for a new focus we call Digital Advantage™

Annual report 2015

We digitalise the winners of tomorrow

As one of the leading knowledge businesses in the Nordic region, we have the answer to the digital challenges faced by our customers. We possess the insight, expertise and concepts

needed for them to complete their digital change journeys. EVRY is now investing to ensure this transformation provides our

customers with the greatest possible digital advantage.

We call this focus ‘Digital Advantage’.

C HA PTER NAME3

Number of employees

3 9182 0531 9791 211

134110

179 422

Norway

Sweden

India

Ukraine

Latvia

Finland

Bulgaria

in total

1961 EDB established as Elektronisk Databehandling AS

2000 EDB acquires Fellesdata AS

2001 EDB established in Sweden

1972 ErgoGroup established as Statens Datasentral (SDS) AS

1995 Norway Post acquires SDS

2006 ErgoGroup acquires

SYSteam AB and Allianse

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2010EDB and ErgoGroup merge to form EDB ErgoGroup ASA

2012EDB ErgoGroup

changes its name to EVRY

Norway

Sweden

India

Ukraine

Latvia

Finland

Bulgaria

in total

62%61% 78%”Digitalisation has had a

large or very large effect on our industry”

”Digital tools, channels, and/or business models are a central part of our overall

business strategy”

”We expect our business will change significantly over the next 3-5 years due to digital

developments”

Survey of business leaders in Norway and Sweden conducted for EVRY

Digital transformation

Our environmental performance

Climate Disclosure Project (CDP) scores, which indicate companies’ environmental performance; maximum score 100

2012

782013

892014

912015

97

2007 EDB establishes Global Sourcing units through acquisitions in Ukraine and India

2007ErgoGroup acquires BEKK Consulting

2013EVRY acquires

TAG Systems Finland OY

2001 EDB established in Sweden

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Operating revenue 2015

Operating revenue (NOK million)

EBITA development (NOK million)

1) Adjusted for non-recurring items

Cash �ow from operations 1) (NOK million)

2.

3.

1.

1. EVRY Norway 46%2. EVRY Sweden 27%3. EVRY Financial Services 27%

10 000

10 500

11 000

11 500

12 000

12 500

13 000

20152014201320122011

0

200

400

600

800

1 000

20152014201320122011

0

200

400

600

800

1 000

1 200

20152014201320122011

12.9 BN

2015EVRY is delisted from Oslo Stock Exchange

2015Lyngen Bidco AS, a company indirectly

controlled by private equity funds advised by Apax Partners LLP, becomes majority shareholder

2015EVRY enters into

strategic IT infrastructure partnership with IBM

2015Björn Ivroth is appointed as new CEO

and makes changes to the executive management team and organisational structure

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ContentDIGITAL ADVANTAGE

08 CEO letter12 Driving change to deliver digital advantage20 EVRY Strategic Design Lab

OUR BUSINESS

24 Executive Management in EVRY26 About EVRY28 EVRY Financial Services32 EVRY Norway36 EVRY Sweden40 EVRY Operations 42 EVRY Global Delivery 48 Key figures

OUR FOOTPRINT

52 Corporate social responsibility54 People and culture

FROM THE BOARDROOM

58 The Board of Directors of EVRY60 Corporate governance66 Report from the Board of Directors 2015

ANNUAL ACCOUNTS AND NOTES

74 Annual Accounts Group120 Annual Accounts EVRY AS130 Auditor’s report

7CHAPT ER N AM E

8 D I G I TAL ADVA NTAGE

The digital transformation is opening up new opportunities for EVRY. It also means that we are facing greater requirements as a supplier. In 2015 we made significant changes to strengthen our delivery capability and competitiveness.

We create digital advantages

9DIGITAL ADVAN TAG E

Digital business models are creating challenges for many established companies. Value chains are fragmenting, industry definitions are being diluted, and what may appear to be no more than substitutes can quickly become key competitors.

We need to develop and expand our areas of expertise, the range of services we offer and our ability to respond to customer requirements quickly and precisely.

Understanding how digital solutions, new delivery models and network effects can be used to engage with customers and can change behaviours is central to the digital transfor-mation. Customer-centric innovation is therefore at the very core of our strategy for the years ahead. In 2015 we took a range of steps to strengthen our platform for growth, and in 2016 we will be implementing multiple initiatives intended to create fertile ground for progress and greater value for our customers.

Digitalisation and digital transformation are creating an increasing need for change and flexibility in both an organisational and technological sense. Companies that are able to create high-quality dialogue with their custom-ers, to combine and process information, and to tailor their offer and react quickly and agilely can achieve significant

competitive advantages. Similarly, public sector organi-sations that are able to adapt, modernise and improve the efficiency of the services they offer can make significant savings and so free up valuable resources.

Although many public sector organisations and companies know what their ‘dream’ scenario is, they often run into difficulties related to their existing systems when pursuing ambitious plans for modernisation, digitalisation and digital transformation. Legacy systems are not sufficiently flexible and it can be difficult to integrate innovative solutions on top of what is already in place.

In our experience digital business development requires systems that are both technically and financially scalable. This is needed in order to accommodate additional func-tionality, application development and fluctuations in traffic, including peak periods of heavy traffic. Agility, flexibility and scalability are prerequisites for a digital business.

Changes to meet customer needsWhile customer behaviour and the competitive landscape are changing due to digitalisation, challenges are also aris-ing in relation to the operating strategies and requirements associated with IT services and infrastructure. This means that we as a supplier also have to change.

“We will be developing our expertise and concepts in order to be even more prepared to

drive the digital transformation where it belongs - out at our customers’ customers”.

10

We took a number of big steps in 2015. We simplified our organisational structure and our interface with customers. In Norway we brought together the Industries and Regions business areas into a single Norway business area. In Sweden we decided to simplify the company structure and are achieving significant economies of scale as a result of this. We have also implemented measures to adapt our costs to our market position and rate of growth. We have reduced costs primarily by simplifying internal processes and moving greater decision-making authority and more resources to the interface with our customers. The steps we have taken have also involved changes to the executive management team and the implementation of a new organisational structure and operating model. The cost reduction measures have also included headcount reductions in selected areas. This was a difficult process, but such steps were judged to be absolutely essential to securing EVRY’s profitability as well as its ability to invest in new expertise and growth areas.

Partnership with IBMWe have also carried out other far-reaching structural changes in addition to the organisational changes and cost reduction measures. On 1 October 2015 we announced a partnership with IBM to ensure investment and devel-opment for our infrastructure solutions. As part of this partnership EVRY will invest more than NOK 500 million to develop the best cloud-based infrastructure solutions.

The partnership with IBM means EVRY is able to offer a hybrid environment that answers the need many of our cus-tomers have for flexible and scalable solutions. It will be a

great motor for further development and growth in an area that we expect to grow very strongly in the years ahead. As part of the partnership, IBM took on 440 employees from EVRY’s Nordic organisation and 200 employees from our office in Chandigarh in India.

Digital competitivenessEVRY took important steps in 2015 to address the digital transformation and our customers’ needs. We can now offer world-class cloud-based infrastructure solutions that provide both flexibility and scalability. Furthermore, we will be offering efficient applications management concepts and developing expert teams in the area of digital service design. We will also be developing our expertise and concepts in order to be even more prepared to drive the digital transformation where it belongs - out at our custom-ers’ customers.

The opportunity space is vast, but drive and the desire to change are needed. 2015 was therefore a year of many changes at EVRY. Changes that we think are necessary for us to be able to deliver on our promise: collaboration that gives our customers a digital advantage.

Björn Ivroth CEO of EVRY

D I G I TAL ADVA NTAGE

1 1DIGITAL ADVAN TAG E

12 D I G I TAL ADVA NTAGE

1 3

Driving change to deliver digital advantageFrom cost-effective cloud technology to modernisation and innovation, EVRY helps its customers along their digital change journeys. Central to our approach is the desire to create digital advantage for our customers.

RUN represents how we help our customers achieve digital advantage through digital technology that enables standardisation, increases operational efficiency and reduces costs.

MODERNISE represents how we help our customers achieve digital advantage by digitalising and automating their business processes.

INNOVATE represents our promise to customers that we will assist them through their digital transformation to enable new business models and open up entirely new opportunities on a digital platform.

Run Modernise Innovate

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Run

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New weapon against low oil pricesTogether with Envision’s industry-leading analysis solutions and cloud-based computing power on demand, EVRY is developing the analysis opportunities of tomorrow for the oil industry.

When the oil price tumbles, oil and gas companies look for new ways to increase their efficiency and reduce their costs. The industry’s insatiable need for computing power for analysis is making cloud computing attractive both because of the access to capacity it offers and the cost savings it can deliver.

Cloud-based oil explorationThe analysis tasks carried out by the oil and gas industry require access to high-quality up-to-date data, expensive specially developed software, and, not least, investment in powerful computing systems.

PetroPortal, which EVRY developed, provides the 70 oil and gas companies on the Norwegian continental shelf with access to high-quality raw data from the national Diskos database. This gives the companies access to exploration and extraction-related information such as seismic and navigational data and well and production data, together with advanced applications with which to process this data. All this is available via the same stan-dardised, user-friendly interface.

Envision delivers solutions specially adapted for data anal-ysis by the oil and gas industry. The company’s seismic analysis and reserve-modelling applications were also made available on PetroPortal in 2015.

PetroPortal is a cloud-based solution that provides simple, secure and cost-efficient access to graphic and process-ing-intensive applications and service programs for analysing oil and gas data from Diskos. By always providing high-qual-ity, up-to-date information and advanced applications at a competitive price, PetroPortal saves user companies from costly and time-consuming processes. PetroPortal also enables the services available to the customer to be adapted to its requirements, both in terms of scope and breadth.

“The combination of Envision’s specialist expertise and EVRY’s delivery capability in this market segment means that despite the lower oil price, we see a bright future”, comments Åge Løklingholm, General Manager, Envision Data Management.

Capacity on demandUsers avoid having to make sizeable investments in data and applications and pay only for the computing power they use, with the computing capacity delivered adjusted to users’ requirements.

The Norwegian oil industry has been responsible for industry-leading innovation for many decades. Close collaboration with partners such as Envision means EVRY is on the way to setting the standard for more efficient data analysis in the oil industry.

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Modernise

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Making every day easier for passengers and conductors Thanks to a mobile ticket-sales solution developed by EVRY, the Norwegian State Railway’s (NSB) Passenger Train Division is digitising the tasks carried out by its conductors. With 1 300 hand-held sales terminals, conductors are able to offer passengers a superior and quicker service.

“High-quality sales solutions are very important to NSB, from the perspective of our customers and our employees and of providing an efficient and secure service”, comments Kristin Kjøge Jansson, who is in charge of digital development at NSB’s Passenger Train Division.

The new, mobile ticket-sales terminals will help NSB to achieve its objectives for customer service, efficient ticket control and payment security.

Simpler and quicker The solution was developed as part of a project between NSB and EVRY. The new ticket-sales solution is in constant use by NSB’s conductors on board trains all over Norway. Feedback reveals that the solution is simpler and quicker to use.

The new solution consists of a new, intuitive sales application specially adapted to the day-to-day needs of conductors. The solution is user-friendly and reliable with regard to selling tickets, scanning travel cards and taking payments. The solu-tion is also connected to the internet, enabling conductors to take payment via all types of payment card.

The contract is part of the Passenger Train Division’s efforts to push forwards with its digital strategy and provide customers with added value.

EVRY is helping to make the public sector more efficient and simpler, and is committed to ensuring the sector’s invest-ment in IT delivers value. Mobile ticket sales give the NSB’s Passenger Train Division a digital boost, and the solution is an excellent example of the value that digitising processes creates both for organisations and for society in general.

The NSB solution was delivered by EVRY in collaboration with Verifone Norway AS and Lexit AS.

Facts about the solution:- Payment is taken from the customer’s account immediately- A back-up solution is available for stretches of track where

reception is poor. Payment transactions are transferred as soon as the solution is back online.

- The new mobile terminals can also read QR codes. This makes it quick and simple for conductors to check tickets that customers have printed at home or have on the app, as they can simply scan the code and thereby verify that the ticket is valid.

- The new solution reads travel cards more quickly than previously.

- Conductors can use the new solution to print out receipts on location.

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Innovate

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Potential borrowers now doing the bank’s jobEVRY’s Self Service Lending Solution has helped BN Bank transfer the task of filling in forms away from the bank to its customers. This saves BN Bank time and resources, and customers appreciate the simplicity of the service, which involves fewer data input processes and forms.

Loan applications involve a lot of paper work and require a great deal of time and concentration. Every application has to be recorded in the lending system and scored, priced and checked against external registers before it can be approved or refused.

BN Bank wanted to offer its customers a simpler and smarter internet-based loan application process that would allow potential borrowers to enter more of the information needed themselves. The bank was keen at the same time to develop a more automated approach to processing loan applications.

AutomationEVRY’s Self Service Lending Solution offers a market-leading level of automation. The application form is simple and intuitive, and built-in checks and operating logic filter out those applications that do not satisfy the requirements. Almost all data registration and checks required for applications that qualify for further processing are carried out automatically.

In addition to digitising the process of completing loan application forms, BN Bank has introduced additional functions such as secure identification via BankID, dynamic interest rate calculation and the automatic sourcing of information on the applicant’s assets and borrowings, further simplifying the process.

A popular banking innovationLoan applications that are refused generate no revenue for the bank. There is therefore an obvious efficiency gain in automating the process of filling in the application forms and transferring this task to the customer. Customers also feel as if they have more control over their application.

The new service has rapidly become a popular new option among customers. Self-service loan applications have made applying for a loan more attractive than before.

The bank’s own figures indicate that customers really do appre-ciate the simplicity of the service and the fact that they have to enter their details fewer times and complete fewer forms.

“What this means for us at BN Bank is that the bank is not only receiving more applications for loans, but also that we are more efficient at processing them all. EVRY’s Self Service Lending Solution filters out a lot of the applications that cannot be approved, enabling us to spend our time on those appli-cations that may result in loans being granted and so creating new customer relationships”, comments Bård Kvam, who manages BN Bank’s lending and savings department.

“In addition, the time spent processing successful applications has gone down significantly. Much of the work involved in inputting data and scoring, pricing and checking the applica-tion against other systems is now done automatically”, he adds.

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Introducing EVRY Strategic Design LabThe digital transformation is affecting all industries, and many of today’s business models and strategies need to be re-examined. EVRY Strategic Design Lab addresses this by identifying, creating and delivering value for EVRY’s customers through a combination of business development capabilities, industry experience, design thinking and digital muscle.

D I G I TAL ADVA NTAGE

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The changes are coming thick and fast. New competition can come from entirely new directions, and opportunities can arise in entirely new arenas. The challenges businesses face today are consequently more complex, but there is also dramatically greater potential for innovation and growth. Digitalisation is a journey of change that can trans-form every aspect of a business, from its business model and strategy to its employees, partners, and, perhaps most importantly, how its customers perceive their needs, value what is offered, and rate the customer experience.

Digital transformation will affect all aspects of business, from how companies serve their customers to how they develop and market their products and services, as well as how they are organised and run.

We believe that a design-led approach is the best way for large enterprises to craft their business strategy so as to build sustainable digital advantage in today’s highly disrupted environment.

To support our customers, we have set up EVRY Strategic Design Lab in collaboration with Method, an award-win-ning world-leader in experience design. Together we are applying design as a tool for rethinking how customers can identify new sources of value and gain a digital advantage.

Design thinking is a problem-solving methodology ideally suited to solving complex business dilemmas. We work at the intersection of business strategy, technology and design, and put the end-customer at the heart of the prob-lems we solve – and the opportunities we create.

DIGITAL ADVAN TAG E

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Our business Executive Management in EVRY About EVRY EVRY Financial Services EVRY Norway EVRY Sweden EVRY Operations EVRY Global Delivery Key figures

2 3CHAPT ER N AM E

24

FROM LEFT:

Björn Ivroth, Henrik Schibler, Wiljar Nesse, Fredrik Almén, Laxmi Akkaraju, Morten Sæther,Kolbjørn Haarr, Trond Vinje and Janne Marie Log

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Executive Management in EVRY

Björn IvrothCEO

Experience: Björn Ivroth has more than 30 years’ experience from top management positions at CGI, IBM and Accenture and from having worked as a consultant at McKinsey. From 2012 to 2014 he was the Managing Director of CGI Sweden, where he led the company’s business transformation.

Education: A Master’s degree in Business Economics from the School of Business, Economics and Law at the University of Gothenburg.

Fredrik AlménE XECUTIVE VICE PRESIDENT, EVRY SWEDEN

Experience: Fredrik Almén has been Vice President for Business Process Services and Software Business at CGI, COO at CGI Sweden, and Vice President for Business Consulting. He has also been CEO of Antula Healthcare International, COO of KIN Group, Procurement Director at Eniro and a Management Consultant at Accenture.

Education: A Master’s degree in Finance and Business Administration from Stockholm University.

Kolbjørn HaarrE XECUTIVE VICE PRESIDENT, EVRY NORWAY

Experience: Kolbjørn Haarr has been Executive Vice President for Central Europe, Russia and Norway at Tieto, Managing Director of Tieto Norway, and a member of the Tieto Corporate Management Team as Executive Vice President for Telecom, Media, Energy and New Markets. He has also held several senior positions at HP, including Director of HP Technology Services in Northern Europe and Director of HP Services in Norway.

Education: Trained as an engineer at the Stavanger College of Engineering.

Henrik SchiblerCFO

Experience: Henrik Schibler has been CFO at ISS Norway, regional CFO at ISS Central Europe, and Finance Manager at ISS Group Operations. Henrik has also worked at the FisherThermo Scientific/Nunc Group and at Egmont.

Education: A Master’s degree in Economics and Business Administration from Copenhagen Business School, with specialisation in Management, Accounting and Control.

Laxmi AkkarajuE XECUTIVE VICE PRESIDENT, EVRY GLOBAL DELIVERY (ACTING)

Experience: Laxmi Akkaraju is responsible for the EVRY Global Delivery Program and the overall strategy for the EVRY global delivery centres in India, Ukraine and Latvia. She has also served as Country Manager for EVRY in Bangalore, India. She has worked in Intel (USA), Spirent (USA), and Holte Consulting (Norway). Laxmi Akkaraju is also on the Board of Directors of NUCC (Norwegian Ukrainian Chamber of Commerce).

Education: A graduate of The University of Colorado in Boulder, USA, and a Master degree as Civil Engineer.

Trond VinjeE XECUTIVE VICE PRESIDENT, HR

Experience: Trond Vinje has been HR Director at Scandic Hotels, HR Director at CGI Norway and HR Manager at ISS Facility Services. He has also held senior management positions at the Norwegian Tax Administration and at Accenture, and his background is as an analyst and consultant at PA Consulting.

Education: A Master’s degree in Political Science from the University of Oslo and Manchester Metropolitan University.

Wiljar NesseE XECUTIVE VICE PRESIDENT,EVRY FINANCIAL SERVICES

Experience: Wiljar Nesse was previously Head of the Bank and Finance business area at EDB Business Partner. He has also worked at Elkem and AP Dow Jones, and as chief executive and part owner of Manamind AS.

Education: A Master’s degree in Business Economics from the Norwegian School of Economics.

Morten SætherE XECUTIVE VICE PRESIDENT, EVRY OPER ATIONS

Experience: Morten Sæther has held several senior management positions at Telenor. He joined EDB in 2004 and then started at ErgoGroup in 2005.

Education: A Bachelor’s degree in Computer Science from Sør-Trøndelag University College.

Janne Marie LogE XECUTIVE VICE PRESIDENT, CORPOR ATE COMMUNICATIONS AND BR AND

Experience: Janne Marie Log has been Executive Vice President for Communications and Public Affairs at the BI Norwegian Business School, Vice President for Communications and Public Affairs at the Federation of Norwegian Agricultural Cooperatives, and an Advisor at the Ministry of Transport and Communications, and the Norwegian Competition Authority.

Education: A Master’s degree in Economics from the University of Oslo, the Solstrand Program (Norwegian School of Economics/Administrative Research Institute) and HPL/APHL programs at the International Institute for Management Development in Switzerland.

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EVRY delivers business-critical solutions to companies and public sector organisations at the national and local government level. Over four million people in the Nordics use services delivered by EVRY each day. We are the force behind a whole range of innovations that have transformed and simplified the way people access services across society. Throughout the day and night, people are logging into internet banking, retrieving important work documents, or just checking the time of the next train home.

We provide industry-leading solutions to large and complex customers as well as to smaller businesses that need off-the-shelf products. Our ability to make use of our strong local knowledge while also drawing on our international resources puts us in a unique position.

EVRY is divided into the following market segments: EVRY Financial Services, EVRY Norway and EVRY Sweden. EVRY Financial Services delivers services to the banking and finance sector internationally, while EVRY Norway and EVRY Sweden serve their respective markets. EVRY Operations and Global Delivery work across the three market segments to provide IT operating services and outsourcing services respectively, with EVRY offering offshoring to India, nearshor-ing to Ukraine and first-line customer service from Latvia.

EVRY has some 10 000 employees across Norway, Sweden, Denmark, Finland, India, Great Britain, Ukraine, Latvia and Bulgaria. The company’s head office is located at Fornebu outside Oslo, Norway.

About EVRYEVRY is one of the leading IT companies in the Nordic region and has a strong local and regional presence. Our employees have in-depth expertise and extensive experience, and we offer both local and global delivery models. We develop solutions that give our customers a digital advantage, modernise business processes, and make IT operating services more efficient. Through our insight, solutions and technology, we contribute to the development of the information society of the future, for the benefit of our customers and society as a whole.

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Operations

Global Delivery

LatviaIndia Ukraine

FinancialServices SwedenNorway

28 OUR BUSINESS

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EVRY Financial ServicesEVRY Financial Services is a complete industry vertical and is responsible for all the group’s deliveries to bank and finance customers. The segment offers a broad and comprehensive portfolio of solutions to support banks in their management of continuous change and to facilitate the next generation of banking services.

Digitalisation is changing the behaviour of banking customers, while new regulations are accelerating the transformation of the industry. Banks are continually developing and improving their digital offering in order to meet customers’ changing expectations. Digitalisation allows banks to interact with customers more often and so creates new opportunities for understanding customer preferences and needs. This is making it easier for banks to provide relevant, individualised services as part of a seamless customer experience across multiple touch points.

As a result of greater competition due to new market entrants, the banking sector has a strong need to customise its products and to find new ways of serving customers. Banks are always on the hunt for a competitive advantage in order to differen-tiate themselves from their competitors, and this ideally takes the form of superior customer experience through digital technologies. Modernising and simplifying legacy IT systems continues to be important to the banking sector. This is part of facilitating the automation of end-to-end processes to achieve greater cost efficiency as well as better use of banks’ digital competitive advantages.

Defining banking for tomorrowEVRY has the experience, resources and capabilities that financial institutions need not only to transform their business, but also to continuously extend their digital advantage. Through our in-depth industry knowledge, we uncover ways to help banks do things differently and generate new ideas that change how businesses operate and compete. EVRY is committed to sizeable investment in the continuous develop-ment of an innovative and cost-effective solutions portfolio.

EVRY Financial Services currently serves 150 customers in 12 countries and has 1 299 employees with in-depth customer

understanding and awareness of the opportunities and challenges that characterise the bank and finance market.

An important element of EVRY’s strategy is to further expand and strengthen our geographic footprint in the Nordic market. Furthermore, we will continue to expand outside the Nordic region in selected areas such as card services, fraud prevention, lending solutions and ATM services. EVRY Financial Services operates a delivery model that is fully integrated with the company’s global delivery units in order to meet customer needs and adapt to developments in the market. We are very excited about the market opportunities open to us, and we are well placed to capitalise on them.

Focus areas for EVRY Financial ServicesEVRY Strategic Design LabWe believe large enterprises need to apply design-thinking when crafting their business strategy if they are to build a sustainable digital advantage in today’s highly disrupted environment. To support our customers, we have established the EVRY Strategic Design Lab in collaboration with Method, a world leader in experience design. Together we are apply-ing design as a tool for rethinking how our customers can identify new sources of value creation and revenue. This is an initiative to identify, create and deliver value for our custom-ers by bringing together expertise in business development, industry knowledge, design-thinking and new technology.

Digital Design & Insight To ensure that we are even more relevant to our customers in the digital marketplace, we have established a new business unit, Digital Design & Insight. With dedicated multi-disciplinary teams that understand each bank’s brand and engagement model, we help our customers create digital advantage. Digital Design & Insight brings together

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capabilities in predictive analytics, CRM, UX, UI and front-end development to help customers unleash the power of digital to create new value.

Financial Services LabsResearch at EVRY focuses on customer needs in combi-nation with emerging solutions and technology trends. Research, co-creation and prototyping concepts are three distinct capabilities essential to the way we work. We take a human-centered, design-based approach to co-creating innovative concepts together with customers and partners, thereby helping banks to innovate and grow. Our research teams are embedded throughout our organisation to facili-tate, support and accelerate innovation.

Bank 2020 In 2015 EVRY launched Bank 2020, an insight program into the future of banking. The purpose of the program is to inves-tigate how banks will be affected by technology and busi-ness drivers in the near future, and is a collaborative project involving experts from EVRY and partnering banks. Last year we published several white papers, with topics including the financial behaviour of Millennials, the financial needs of small businesses, and analysis of the potential of technologies such as blockchain, analytics and artificial intelligence.

Next-generation core banking solutions It is crucially important to offer both banks’ customers and employees solutions that deliver user-friendly banking services as well as state-of-the-art functionality. Investing in next-generation core banking and payment solutions is therefore of great strategic significance.

EVRY is establishing its new core banking solution as a service platform using industry-standard components. Its development strategy and implementation methodology are firmly based on the company’s involvement in the Banking Industry Architecture Network, of which EVRY is the only Nordic member. Modern architecture and standards,

including ISO 20022, ensure that the solutions are flexible, cost-efficient and adapted to international requirements.

EVRY is having a lot of success in the Norwegian market for next-generation core banking and payment solutions, and has signed delivery agreements with the SpareBank 1 Alliance, Sparebanken Vest, Sparebanken Sør, Sparebanken Sogn og Fjordane, Helgeland Sparebank, Gjensidige Bank, De Samarbeidende Sparebankene and Sparebanken Møre. The contracts have a combined total value of approximately NOK 4 540 million.

Card Services and mobile paymentsEVRY’s card business is growing strongly. As a leading vendor of card services, we provide services to the bank and finance industry as well as other sectors such as retailers, transport companies and businesses in general. EVRY accordingly offers the most complete range of services on the market. EVRY is pioneering the Card-as-a-Service concept, a complete product sourcing and lifecycle man-agement service for all types of cards.

Card-as-a-Service, contactless card solutions and mobile payment services are important areas of focus and EVRY is well-positioned for the growth expected in these areas in the years ahead.

Business quality and continuity Operational reliability and high levels of security are fundamental requirements for deliveries to the bank and finance segment. Clear and well-established business quality processes are implemented throughout EVRY Financial Ser-vices to ensure that there is a high level of continuity across the business area and that we operate in accordance with common standards. Work on business quality and continuity accordingly targets work processes, project management, compliance, portfolio management, architecture, security and risk. This ensures that quality performance at EVRY meets both regulatory requirements and market standards.

Operating revenue 2015 EBITA

MNOK MNOK

Number of employeesOperating revenue in percent of total revenue

3 576 335 1 29927%

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COLLECTOR BANK

Collector Bank is a niche bank that offers innovative financial solutions to private and corporate customers. Collector Bank and EVRY entered into an agreement for EVRY to consolidate all Collector Bank’s credit card solutions into a single credit card service. EVRY’s expertise and knowl-edge of the regulatory and technical requirements were crucial factors in the partner selection process. As part of the agreement, EVRY will deliver a full chain of card issuing services, including administration, authorisation, personalisation, card security, fraud prevention and 24/7 support services. The agreement signed in August 2015 represents a total contract value of NOK 25 million and is for a period of three years.

DE SAMARBEIDENDE SPAREBANKENE

EVRY entered into a long-term agreement with De Samarbeidende Sparebankene, an alliance of savings banks comprising Haugesund Sparebank, Spareskillingsbanken, Luster Sparebank, Lillesands Spare-bank, Søgne og Greipstad Sparebank, Voss Sparebank, Etne Sparebank, Skudenes & Aakra Sparebank and Flekkefjord Sparebank. EVRY will deliver banking solutions and complete IT platform operations to the nine savings banks, and the agreement means EVRY will deliver next-genera-tion core banking and payment solutions. The agreement represents total contract value of NOK 355 million and is for a period of five years.

DNB

DNB and EVRY entered into a new long-term banking services agreement which will see DNB continue to use EVRY’s payment and card services and adopt a new payment solution adapted for international use. EVRY will deliver physical cards as well as card-related services such as security solutions and transaction monitoring. EVRY will also continue to produce contactless cards for DNB and more than one million DNB customers are expected to receive contactless cards. Adopting EVRY’s new payment platform will give DNB access to a range of payment services that will facilitate quicker implementation of changes for users. The agreement represents contract value of NOK 620 million based on current volumes and is for a period of five years.

HAMPDEN & CO

EVRY and the newly established bank Hampden & Co entered into an agreement for EVRY to deliver cards and card-related services, including production and personalisation. The solutions that EVRY provides to Hampden & Co are fully compliant with EU regulatory requirements. Hampden & Co is the first new private bank to be set up in the UK for thirty years. The new bank is being built on modern and efficient banking solu-tions to serve clients in the private high-end segment of the retail market.

LÄNSFÖRSÄKRINGAR BANK

EVRY signed an agreement with Länsförsäkringar Bank, which has a clear target of being a leading player in providing digital services to customers. This makes it crucially important that it has an IT partner capable of rapidly providing new banking services and products. EVRY has worked with Länsförsäkringar Bank for ten years. The new three-year agreement covers the development and management of the bank’s channel solutions as well as integration with the bank’s existing systems. This also includes the bank’s branch office applications and systems support for lending. This agreement is in addition to a separate agreement whereby EVRY is to pro-vide the bank with a full value chain of card services.

SPAREBANKEN MØRE

Sparebanken Møre and EVRY are extending their collaboration so that EVRY, in addition to delivering banking and IT operating services, will also deliver next-generation core banking and payment solutions. This will give Sparebanken Møre greater flexibility in a rapidly changing market. The new solutions meet the bank’s need for simplification and cost- efficiency, and will make it even better equipped to satisfy its customers’ expectations for the user experience to be more personal and digital. The agreement represents total contract value of NOK 185 million and is for a period of three years, with the option to extend for another two years.

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EVRY NorwayEVRY delivers innovative and business-critical solutions to the largest private sector businesses and public sector organisations in Norway as well as to a significant section of the SMB market. The company’s focus industries include insurance, healthcare, local and central government, industry and manufacturing, and oil and gas. EVRY has a flexible delivery model and is represented in over 20 towns and cities across the country.

Norwegian businesses and organisations are facing signif-icant changes driven by rapid technological and market developments. Innovations in areas such as automation, the internet of things, cognitive systems, robot technologies, vir-tual reality and 3D printing are inspiring new ways of thinking. Growth is also being driven by innovation accelerators such as mobility, big data, analytics and cloud services. According to IDC, half of all IT investment in infrastructure and software will be on cloud-based solutions by the end of 2018.

With many years of insight and experience in technology as well as industry-specific solutions, EVRY creates digital advantage for its customers. The company modernises business processes and makes IT operations more efficient. EVRY has developed and delivered a range of innovations that have transformed and simplified how people use services in society. The company is committed to further growth.

As part of its strategy, EVRY focuses on selected industries, specifically insurance, healthcare, local and central govern-ment, industry and manufacturing, and oil and gas. In each of these areas EVRY is a full-service provider of IT services, from infrastructure and operations services to business process systems, enterprise application systems, consulting services, collaboration solutions and innovation support. We have dedicated personnel with in-depth technical insight and expertise for each industry vertical. We also operate a unique partner network that ensures our customers have access to leading technology and specialist expertise as well as the flexibility to choose the best solution for their organisation.

In order to raise the profile of EVRY’s expertise and resources in technology and business development, EVRY has set up various Centers of Excellence (CoE) in Norway which bring together the company’s foremost expertise in areas such as digital transformation and applications management. The CoEs will facilitate customers’ access to leading expertise in a range of specialist areas, helping them to achieve a return on their investment faster.

Focus areas in the Norwegian market Insurance EVRY is a leading supplier to the insurance industry, provid-ing consulting services, solutions and operating services. We help both established and new insurance companies in the general insurance, life insurance and pensions areas by increasing their competitiveness through digitalisation and customer experience improvements. Customers include Gjensidige, Storebrand, KLP and Nordea Liv.

Health Industry expertise is important in the healthcare sector. EVRY’s vision in healthcare is ‘by clinicians for clinicians’, and the company has a strong and skilled team developing solutions designed to improve the healthcare sector. E-pre-scriptions, electronic patient monitoring and medication systems, and interactive referrals and transfers from GPs to hospitals are just some of the solutions EVRY delivers. Its customers include the Directorate of Health, all Norwegian health authorities and some private hospitals.

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Local Government The majority of Norway’s municipalities manage their pro-cesses using the UNIT4 ERP system and the Ephorte case and archive solutions delivered by EVRY. EVRY is helping most of Norway’s municipalities and county authorities to improve their service offering and to automate how they communicate with the local population, as well as with standardising and increasing the efficiency of their existing solutions.

Central Government The public sector has a clear and ambitious digital agenda to modernise, simplify and improve how it is run and the ser-vices it offers. Our vision is to deliver profitable and innova-tive projects that help to digitalise and improve the efficiency of Norway. We have significant experience and expertise in the public sector and deliver operationally critical solutions that are helping make the Norwegian Government’s target of digitalising the public sector and the services it provides a reality. Customers include the Norwegian Tax Directorate, the Norwegian Public Roads Administration, the Norwegian Parliament, Norwegian State Railways, the Norwegian National Rail Administration and the Norwegian Directorate of Public Construction and Property.

Industry and manufacturingFor more than forty years EVRY has helped Norwegian industrial and manufacturing companies to be more inno-vative and to achieve a faster pace of change and higher

productivity. As industrial production becomes ever more globalised, the need for efficient logistics is intensifying, and we offer a range of solutions that provide companies with competitive advantages. Customers include Norsk Hydro, Nammo and Orkla.

Oil and gas Our specialist oil and gas team is based in Stavanger, with branches at our locations in Porsgrunn, Bergen and the rest of the country. It is essential that the IT tools in this sector are reliable and user-friendly whilst also offering a wide range of functionality. Our aim for the oil and gas industry is to create added value by delivering technology and consulting ser-vices that strengthen customers’ ability to compete and to adapt to fluctuations in the price of oil. Customers include Aibel, Gassco, the Norwegian Petroleum Directorate, Petoro and Centrica E&P Norway.

Small and medium-sized businesses EVRY is a leading supplier to the SMB market, offering comprehensive and cost-efficient solutions. Thanks to our extensive regional structure, our dedicated teams know the opportunities and challenges facing businesses locally. Customers include Norsk Tipping, BoligPartner, Pronova, Virke, Servicegrossistene, Vita and Toyota.

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BLUEGARDEN

Bluegarden entered into an infrastructure operations agreement with EVRY. The company needs a supplier capable of delivering secure and reliable services, and chose to continue to work with EVRY. The agreement represents total contract value of NOK 55 million and runs for five years.

NATIONAL REGISTRY

EVRY signed an agreement with the Norwegian Tax Administration giving it exclusive rights to the distribution of information from the National Registry. The Registry contains important information about everyone who either is or has been resident in Norway. The agreement represents total contract value of NOK 75 million and runs for three years.

NORWEGIAN NATIONAL RAIL ADMINISTRATION

EVRY and the Norwegian National Rail Administration (JBV) entered into an agreement for EVRY to develop and deliver a new, digital warehouse management system. The solution will provide JBV with the ability to digitally oversee and administer all the components stored in its 120 warehouse locations, which are spread across Norway. The agreement represents total contract value of approximately NOK 20 million and runs for 10 years.

STATKRAFT

Statkraft has entered into an agreement with EVRY for hardware deliveries. The agreement is for PCs and peripherals, and also includes distribution both nationally and internationally. In addition to providing hardware and support, EVRY will assist Statkraft with consultancy services to give it a future-oriented product strategy.

STATOIL

Statoil has tasked EVRY with rolling out a document management system for its global exploration activities. The solution is intended to im-prove the way in which the thousands of documents that Statoil’s global exploration activities have generated over many years of exploration are stored, accessed and retrieved.

STOREBRAND

The Storebrand group, including its subsidiary SPP in Sweden, selected EVRY as a supplier of Agresso as a common finance and accounting system for the Nordic region. The agreement also includes operations for the system, and represents total contract value of approximately NOK 40 million over five years.

THE MUNICIPALITY OF BRØNNØY

The Municipality of Brønnøy, which is the host municipality for an inter-municipal ICT collaboration scheme in Helgeland, selected EVRY as the municipalities’ supplier of integrated ICT services. EVRY has also taken on responsibility for ICT operations in the three municipalities. This means EVRY will deliver comprehensive ICT services in relation to case management and archiving, a business process management system, a portal solution, consultancy and operating services. The agreement represents total contract value of approximately NOK 30 million over a three year period, and includes an option to extend for a further five years for NOK 50 million.

THE NORWEGIAN DIRECTORATE OF PUBLIC CONSTRUCTION AND PROPERTY

Targeted and efficient project management enabled EVRY to implement accounting, procurement and project management systems for the Norwegian Directorate of Public Construction and Property at record speed. The companies have also entered into a new manage-ment agreement. The agreement represents total contract value of NOK 20-25 million and runs for four years.

THE NORWEGIAN PUBLIC ROADS ADMINISTRATION

The Norwegian Public Roads Administration and EVRY entered into an agreement for EVRY to operate the Autosys Register of Motor Vehicles. The system functions as a register for all Norwegian motor vehicles and receives 11 million queries a month. EVRY will also deliver Unit4’s travel cost and expenses system to the Norwegian Public Roads Administration. This agreement represents the starting point for broader collaboration between EVRY and Unit4. The agreement represents total contract value of NOK 250 million and runs for five years.

TOYOTA

Toyota Norway selected EVRY to standardise and centralise the collaboration solutions used by Toyota Norway and its dealerships. The agreement also includes operations for 2 300 PC clients. Following the new agreement, EVRY will deliver services to Toyota Norway’s central location as well as to its 100 or so locations across Norway. The agreement runs for five years.

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EVRY SwedenEVRY is the largest supplier of IT services to small and medium-sized businesses in Sweden. EVRY also has a strong market position in the large company segment as well as in the public sector and a range of private sector industries.

The Swedish market is being driven by the digital transfor-mation that both the private and public sectors are going through. EVRY offers its customers efficient IT operating services, business process modernisation services, and solutions that provide a digital advantage.

Our customers want consultants that have expertise in their industry and what they do. EVRY has in-depth business understanding and technical expertise in most industry verticals. We offer a range of industry-specific solutions and a broad range of services covering consulting, solutions and IT operating services.

EVRY seeks to use its regional departments to take full responsibility for its customers’ investment in IT, from identifying their requirements to realising the benefits of their investment and following up on the results.

Our business model meets the market’s strong demand for collaboration partners that have a high level of local industry knowledge whilst also being competitive on price and quality.

EVRY has extensive experience and in-depth expertise in business-critical services, including IT operating services, data storage, applications operations, service desk and network operations including communications.

EVRY Sweden has a unique regional position and offers everything from strategic advice and consulting services through to complete solutions and IT operating services. We are continuing to strengthen and develop our local profile and distinctive business model, reflecting local requirements. EVRY Sweden operates from regional offices in 25 towns and cities and has the delivery capability to serve small, medium-sized and large customers.

Fredrik Almén took over as the Executive Vice President for EVRY Sweden in November 2015.

Strategy and focus areasThe EVRY Norway and EVRY Sweden segments became more streamlined in 2015. This means there is now more effective collaboration and cooperation between the coun-tries, not least in relation to the development of their service offerings. EVRY Sweden is intensifying its focus on digital transformation, applications management, business process management solutions, analytics, automation, information logistics, the internet of things and mobility. In order to meet customer demand and to adapt to the market, EVRY Swe-den’s outsourcing deliveries will increasingly be provided by EVRY’s Global Delivery unit.

EVRY Sweden’s focus on operating services has been further strengthened by the agreement that EVRY entered into with IBM in October 2015.

EVRY Sweden is well-positioned for future growth. Our greatest competitive advantage is our ability to combine our strong local knowledge and presence with our group’s international resources for systems development.

Focus areas in the Swedish marketMobilityTechnology related to mobility can deliver significant commercial benefits. Our objective is to create seamless and competitive mobility solutions that support our customers’ business strategies and needs. EVRY offers lifecycle manage-ment solutions that handle everything from procurement and logistics through to distribution, management of IT assets and support. Lifecycle management helps improve efficiency and reduces costs for the customer. Customers in this area include Svevia, Handelsbanken, and the county of Värmland.

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Public sectorDigitalisation is a major requirement for the public sector, both to increase its productivity and to improve how it com-municates with citizens. Its quality requirements are increas-ing in parallel with this. EVRY is helping both national and municipal organisations to solve these challenges through modern and efficient IT solutions. Its customers include the Swedish Tax Agency, Vellinge Municipality, the Swedish Energy Authority and the Swedish eHealth Agency.

Healthcare sectorEVRY has extensive experience and unique expertise in the healthcare and welfare sector. We offer integrated services that support both healthcare and welfare bodies and their patients. Our employees offer high-quality IT services and create added value through their in-depth industry expertise. Customers include Sussa (a customer group comprising the counties of Sörmland, Blekinge, Västerbotten and Västernorrland as well as the primary healthcare service in Örebro county), Uppsala University Hospital and the county of Uppsala.

SecurityEVRY has significant expertise in IT security and is an attractive collaboration partner for IT operating services and advanced security services. We possess the knowledge that is needed to develop robust and secure IT environments and ensure confidentiality, availability and integrity. Customers in this area include Sveriges Riksbank (the central bank of Sweden) and the Swedish Defence Material Administration.

RetailEVRY has significant experience and industry knowledge in the retail sector and e-commerce. EVRY Sweden

developed, for example, Bilia’s e-commerce solution, which represents one of the largest e-commerce projects ever completed by EVRY. Digitalisation is very high on Bilia’s agenda, and the e-commerce solution was one of the company’s highest-priority projects. Customers in this area include Bilia and Systembolaget.

Primary industriesEVRY has a range of customers in primary industries and is particularly well-positioned in forestry, where we have developed a dedicated industry-specific solution. We help to increase the forestry industry’s competitiveness by providing efficient operations processes and IT solutions that ensure sound management. Customers in this area include Skogsam and Ingarps Trävaror.

Transportation and logisticsEVRY is more than simply a supplier to transport and logistics companies; we are a partner throughout the whole value chain, from business development through to efficiency improvement services. Our industry knowledge in this sector in combination with our expertise in mobility, development and operating services means we are well-positioned in this market segment. Customers include Göteborgs Lastbilscen-tral and Stockholm Public Transport (SL).

Processing and manufacturing industryIn order to be competitive, processing and manufacturing businesses need to increase their productivity by improving their business processes. IT plays an important role in this work. EVRY is very experienced at helping Swedish industrial companies with innovation and with achieving a faster pace of change, higher productivity and more efficient logistics. Customers include Theofils, Bufab and NCC.

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INFRATEK

Infratek and EVRY entered into an agreement for EVRY to modernise and deliver IT infrastructure operations and application services to the entire Infratek group. The collaboration is intended to give Infratek a robust, flexible and cost-efficient IT platform. The agreement represents total contract value of SEK 50 million and runs for four years.

LINKON

Linkon develops and delivers advanced payment systems for the transport sector. The company has entered into an agreement with EVRY for infrastructure services, mainframes and service desk. The collabora-tion will provide travellers with safe and secure access to their tickets. The agreement represents total contract value of SEK 100 million and runs for three years, with the option to extend for a further two years.

REGION SKÅNE, SÖRMLAND COUNTY COUNCIL AND BLEKINGE COUNTY COUNCIL

EVRY and Region Skåne, Sörmland County Council and Blekinge County Council have entered into an agreement for EVRY to deliver a care-planning tool for use by both doctors and care personnel across the regions. The agreement represents total contract value of SEK 60 million and runs for five years.

SDC

EVRY entered into a new agreement with SDC, the Swedish forestry industry’s information hub. EVRY will manage and provide support for the STAR, LAGER and KOLA business process management solutions. The new agreement means that EVRY will also provide complete solutions and product-independent services.

SWEDISH CENTRAL STUDENT GRANTS COMMITTEE

The Swedish Central Student Grants Committee and EVRY extended their collaboration. Following the new agreement EVRY will deliver main-frame services using modern and standardised technology to provide stability and cost efficiency. The agreement represents total contract value of SEK 85 million over four years and includes the option to extend for a further three years.

THE SUSSA GROUP

The SUSSA group and EVRY extended their collaboration and entered into a comprehensive agreement for EVRY to manage, maintain and develop the NCS Cross hospital record system. The SUSSA group comprises the counties of Sörmland, Blekinge, Västerbotten and Väster-norrland, as well as the primary health service in Örebro. The agreement represents total contract value of SEK 200 million over five years.

THE SWEDISH EHEALTH AGENCY

EVRY entered into a comprehensive operating services agreement with the Swedish eHealth Agency. EVRY will be responsible for operating operationally-critical IT systems, including those used to process prescriptions digitally. The agreement represents total contract value of SEK 69 million and runs for four years, with the option to extend for a further two years.

THE SWEDISH TAX AGENCY

EVRY and the Swedish Tax Agency entered into a new agreement for EVRY to develop, manage, operate and deliver user-oriented services for the Swedish Population and Address Register (SPAR), which includes everyone resident in Sweden. EVRY will also be the Swedish Tax Authority’s distributor of personal information for organisations authorised to receive such information. The agreement runs for six years, includes the option to extend for a further three years and represents total contract value of approximately SEK 180 million.

UPPSALA UNIVERSITY HOSPITAL

EVRY is delivering MetaVision as a comprehensive IT support service for an anaesthesia and intensive care unit at a university hospital for the first time. Uppsala University Hospital is also the first university hospital in Swe-den to introduce MetaVision and a Patient Data Management System to manage patient data in an anaesthesia and intensive care unit.

VELLINGE MUNICIPALITY

EVRY has entered into a new outsourcing agreement with Vellinge Municipality which includes office support, service desk, application operations, server platforms and network services. The agreement represents total contract value of SEK 140 million and runs for five years.

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EVRY Operations Cloud is a strategic enabler of innovation, digitalisation and business transformation. EVRY is increasing its investment in the cloud infrastructure area, which will benefit customers by providing them with faster time-to-market and leading-edge infrastructure solutions.

Recent surveys carried out by both Gartner and IDC show that most companies have adopted cloud capabilities to a limited extent, with the main driver for this so far having been the desire to improve productivity and reduce costs. Furthermore, seven out of ten businesses report that they will always have a mix of traditional IT and cloud. Hybrid cloud provides higher Return On Investment (ROI) than alternative environments and offers the technological flexibility to support different stra-tegies. Customers also want blended environments in order to improve security and reduce risk. Of key interest to customers is that hybrid cloud offers them the flexibility to make careful choices regarding the workloads and data they move to the cloud and what they keep in a separate environment.

Hybrid cloud can maximize the value of existing infrastructure. However, EVRY expects that in the coming years customers will be seeking to realise business value that is not simply limited to efficiency savings. They will instead be focused on driving innovation and digital business growth through new business models, for example by offering new products and services, entering new markets, and using next-generation initiatives such as cognitive computing and the internet of things.

Accelerated transformationTo enable it to meet future customer requirements now, EVRY has entered into a unique long-term partnership with IBM that will significantly improve EVRY’s infrastructure offering to its customers.

Under the agreement, EVRY will partner with IBM for the operation of its basic infrastructure platforms, and IBM will play a key role in transforming EVRY’s basic infrastructure services into global platforms using proven methodology and global expertise.

EVRY will continue to lead the development of value-added infrastructure services and will combine this with IBM’s innova-tive cloud technology and global scale.

As part of this accelerated transformation, EVRY will invest more than NOK 500 million to develop the best infrastructure solutions in the Nordics. EVRY’s customers will now be able to access hybrid cloud solutions based on IBM’s SoftLayer platform, which will be installed in EVRY’s datacenter at Fet outside Oslo. This will also provide customers with flexible infrastructure, enabling them to be even more agile in their digitalization work.

Having a leading infrastructure solution is fundamental to EVRY becoming a Nordic champion, as it is the foundation on which we build the solutions that deliver business value and results for our customers. EVRY had already started this transformation journey, but we needed to accelerate the transformation in order to deliver the best infrastructure solutions on the market.

EVRY selected IBM as a global service provider and as a service delivery model for its basic infrastructure business. Customers will benefit from a faster time-to-market for new cloud-based solutions and leading-edge infrastructure platforms. This strategic move allows EVRY to concentrate its efforts on being a customer-centric organisation focused on value-added services and solutions built on leading technology.

EVRY’s broad offeringEVRY helps customers to modernise their legacy systems and to move them to cloud-based environments. Customers moving to a hybrid model want the process to be simple and safe and so seek out advice and best practice. Through its in-depth industry expertise and in-depth technological know-how, EVRY offers ready-to-use cloud solutions.

EVRY’s approach is based on thoroughly investigating customers’ current services and processes as well as their future needs. EVRY is proud to have served as the cloud transformation partner to a large number of private and public sector organisations and is seen as a leading Nordic provider of cloud services.

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EVRY Global Delivery EVRY offers the best global delivery for Nordic customers through our Safeshoring program. In addition to critical knowledge of our customers and the Nordic market, EVRY’s Safeshoring optimises use of offshore and onsite resources to provide our customers with the right balance of responsibilities and the best business value for each global engagement.

EVRY Global Delivery consists of 3 200 employees, with global delivery centers in India, Latvia and Ukraine. Over the last 8 years, our global delivery centers have developed unique competences and deep insight into the Nordic market through several hundred engagements with EVRY. In addition, our global delivery centers in India and Ukraine also have over 20 years of experience with both Fortune 100 and SMB customers in North America and in Europe that is leveraged into our Nordic deliveries.

We also assure Nordic jurisdiction in our global contracts, local currency transactions and Nordic governance of our global delivery centers. EVRY Safeshoring enables improved business agility and scalability for our customers through cost efficient delivery models - all without compro-mising security, risk and compliance.

Offshore: IndiaEVRY India has worked with more than 200 satisfied customers in the large company and ISV segments across the globe, including a large number of customers in the Nordic region.

EVRY India has strong expertise in insurance, healthcare, banking and financial services, retail, national government, travel, transportation and logistics, and converged com-munications. Having the knowledge pool and technical capabilities including application development, applica-tion re-engineering, application management, testing, and infrastructure services, EVRY India enables robust engage-

ment through close collaboration with the customers. The latest services and solutions to be offered are the digital transformation stack, big data analytics, cloud computing, mobility and the internet of things.

EVRY’s offshore development centers in India are located in Bangalore and Chandigarh. These centers are certified to ISO 9001:2008 and ISO 27001:2013 and as PCI-DSS compliant, and have been awarded CMMI Maturity Level 5 and PCMM Maturity Level 5.

Nearshore: Ukraine and LatviaEfficiently combining in-depth industry knowledge and technological expertise, EVRY’s nearshore unit in Ukraine, Infopulse, delivers enhanced business value to its custom-ers by providing excellent IT services and solutions for both SMEs and top-tier corporations.

With 1 300 professionals providing deliveries across the Nordic countries and the rest of Europe, Infopulse delivers services from simple maintenance to product develop-ment and complex consulting, offering its customers a proactive, flexible and innovative approach focused on their business challenges at attractive rates.

The main line of business in EVRY Latvia is native language first line customer support for our customers in Norway and Sweden. In addition, we provide back office services such as accounting and finance, as well as first and second line customer service in English.

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Länsförsäkringar Bank is one of Sweden’s largest banks and offers banking services primarily to the 3.5 million customers of the Länsförsäkringar Alliance. The bank has strong focus on customer satisfaction and growth and serves through 128 of the regional insurance companies’ branches throughout Sweden and via digital services and telephone.

ChallengeLänsförsäkringar Bank had an ongoing application main-tenance engagement with EVRY within digital banking channel and integration services, and wanted to transition the engagement to a GS delivery model. The objective was to have the flexibility of up- or downsizing the team on short notice according to the business demands and reduce the cost involved with the dedicated techno-functional team. The bank expressed the need to achieve this with minimal impact on business processes and business continuity, moreover to work with a partner possessing knowledge of local market and expertise in Nordic jurisdiction and regula-tory compliance.

Solution EVRY provided an integrated global delivery solution with intact processes and local interface for channel applications covering sales support, self-service, internet banking and integration services. The access to local expertise and seamless integration with Indian resources provided stable, predictable service solution, resulting in high customer satisfaction. Moreover, high availability of local as well as the Indian resources added to client’s confidence and resulted in high project performance.

”We are pleased to have agreed with EVRY about a chan-ged delivery model which focuses both on an increased delivery ability and a more cost effective structure without adding significant risk to our business”, says Tobias Ternstedt, Head of Bank IT at Länsförsäkringar Bank.

The solution offered• Cycle time reduction on client implementations through

code re-use• Process optimisation and stabilisation solutions• Mature development processes, methodologies and

standards• Recommending & implementing robust

architectural/design concepts• Strong offshore team, always available to the client

and production support on need basis.

Customer Benefits• Highly efficient testing team. Deliverables of high quality• In-depth knowledge of the applications• Continuous up gradation of the knowledge repository• Ability to take up new modules/application with short

learning curve period• Significant reduction on cost level• Harnessed onsite-offshore dynamics for round the clock

productivity• Quick turn-around time for business critical processing• Well trained back up resources• Deliverables are adhered to the best practices of the

CMMI Level – 5• Short response time

Customer case Länsförsäkringar Bank

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Sykehuspartner serves approximately 90 000 users and has the overall responsibility for ICT, HR and procurement services to all hospitals in the region. Sykehuspartner has approximately 1 300 employees and is one of the largest businesses in the south east area. The users of their solutions are Health South East and all its hospitals, consisting of 77 000 employees and serving 2.9 million inhabitants.

ChallengeThe customer is part of the South-Eastern Norway Regional Health Authority, which includes hospitals in Vest-Agder, Aust-Agder, Telemark, Vestfold, Buskerud, Østfold, Akershus, Oslo, Hedmark and Oppland. Its goal was to set up shared regional services for ICT, HR and procurement. Not all the hospitals were on the same ERP system, so the objective was to implement an ERP system that would be used by all hospitals.

The customer wanted to reduce operating costs and increase reliability by implementing a joint management and operations organisation, and also wanted to increase operational efficiency. Partnering with a company capable of supporting this strategy was also important.

SolutionAfter carrying out an in-depth assessment of the customer’s needs, EVRY worked closely with Sykehuspartner and some of its employees to deliver an implementation project. EVRY’s Global Delivery capabilities were successfully employed, with a higher on-shore ratio adopted in the establishment phase which then gradually increased to 70% until the operations phase. The outcome was that EVRY’s offshore resources were seamlessly integrated into the project, resulting in high customer satisfaction.

EVRY was responsible for providing and setting up the operating platform, and Sykehuspartner has completed acceptance testing. The solution includes finance and logistics modules from the Oracle E-Business Suite. The Oracle E-Business Suite was integrated with SOA (Fusion Middleware) for information flows to the Regional Integra-tion Platform, which is the integration channel for a variety of other systems. Moreover, EVRY is responsible for operations for the system, which is entirely supplied by EVRY, and this includes network operations, basic operations and appli-cation operations, including deploying changes and fault rectification for the software.• Since the start date of June 2014, the system has provi-

ded stable operations and high performance• One team: Procedures established for collaboration,

reporting and monitoring between India and EVRY

Tools & Technologies• Oracle ERP (Oracle E-Business suite)• Oracle BIAPPS (Oracle Business intelligence Application

Suite)

Customer benefits• Quality improvements were acheived thanks to clearer

management information and decision support for health authorities, the Regional Health Authority, and health and care services

• Greater efficiency thanks to standardisation and simplifi-cation of work processes

• Lower operating costs and greater reliability due to a joint management and operations organisation

• Operational stability and high performance• Reduced costs and high scalability

Customer case Sykehuspartner

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PostNord is a leading provider of mail delivery, communica-tions and logistics in the Nordic region. PostNord has 6 000 distribution points in the Nordic region and 35 000 employ-ees, and distributes 130 million parcels and 5.2 billion letters annually.

ChallengePostNord wanted to migrate multiple business-critical Oracle databases to the Oracle Database Appliance (ODA) platform at the same time as it upgraded from version 10g to 11g. The customer wanted to optimise costs and enhance operational efficiency by leveraging the offshoring model. PostNord also wanted to work with a local partner that was close to its market and had experience of similar projects. EVRY was particularly well suited in view of these criteria.

SolutionFollowing an initial assessment of the customer’s needs, the solution that was offered provided complete offshoring of operational work to EVRY’s nearshore center in Kiev, while the Application Delivery, Key Account and Service Managers were kept onshore. The solution ensured operational continu-ity and provided the customer with the outcomes it desired: operational stability, availability and cost optimisation.

The solution included• Setting up infrastructure for two ODA hosts• All databases configured and converted from single-

instance databases to Real Application Cluster (RAC)

• Databases included in the project were migrated on-the-fly to new instances (approximately 5TB of data)

• The backup solution was changed from HP Data Protector to a new IBM Tivoli Data Protector

• Oracle Enterprise Manager Cloud Control was imple-mented for monitoring

Tools & TechnologiesOracle Database Enterprise Edition 10g and 11g; Oracle Recovery Manager; IBM Tivoli Storage Manager.

Customer benefits• Reduced operating costs due to significant decrease in

time and effort required throughout the administration lifecycle

• Reduction in planned and unplanned downtime achieved by automatically monitoring and logging service requests with Oracle Support

• Improved protection for the databases from server and storage failures thanks to Oracle Real Application Clusters and Automatic Storage Management

• High-availability database solution• Newly built infrastructure that will be used to accommo-

date new databases migrated during subsequent project phases

• Close contact with a local partner

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Customer case PostNord

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Key figures by segment

NOK million 2015 2014 2013 2012

EVRY Financial ServicesOperating revenue 3 576 3 682 3 554 3 339 EBITA 335 371 326 314 EBITA-margin 9.4% 10.1% 9.2% 9.4%Operational investments incl in-house developed software (CAPEX) 205 115 188 199 Number of employees 1 299 1 457 1 490 1 490

EVRY NorwayOperating revenue 6 085 6 093 6 180 6 607 EBITA 326 322 359 356 EBITA-margin 5.4% 5.3% 5.8% 5.4%Operational investments incl in-house developed software (CAPEX) 145 255 334 209 Number of employees Norway 2 660 3 344 3 378 3 457 Number of employees Global Delivery 3 341 3 103 2 861 2 440

EVRY SwedenOperating revenue 3 489 3 472 3 293 3 307 EBITA 241 255 213 234 EBITA-margin 6.9% 7.3% 6.5% 7.1%Operational investments incl in-house developed software (CAPEX) 65 80 66 61 Number of employees 1 939 2 218 2 308 2 305

Key figures

EBITAEarnings before tax, interest and depreciation and write-down of intangible assets. Equity ratioTotal equity as a percentage of total equity and liabilities.

GearingNet interest-bearing liabilities divided by total equity. Liquid assetsBank deposits.

Definitions of key figures

OUR BUSINESS

4 9

Key figures for the Group

2015 2014 2013 1) 2012 2) 2011 3)

Key figures (NOK million)Operating revenue 12 860 12 773 12 600 12 731 12 841 Profit before depreciation and write downs (EBITDA) -938 1 020 1 128 1 010 1 084 Profit before amortisation of intangible assets (EBITA) -1 406 543 673 484 612 EBITA before non-recurring items 811 813 764 691 671 EBITA-margin -10.9% 4.2% 5.3% 3.8% 4.8%EBITA-margin before non-recurring items 6.3% 6.4% 6.1% 5.4% 5.2%Number of employees 9 422 10 350 10 323 9 873 9 518

Key figures per share (NOK)Earnings per share 1.10 1.10 -0.29 0.60 0.61 EBITDA per share -3.51 3.82 4.23 3.79 4.08 Cash flow from operations per share 0.96 3.64 3.83 2.71 2.00 Cash flow from operations before non-recurring items per share 3.75 3.93 4.12 3.03 2.54Book equity per share 8.03 16.02 20.04 20.46 19.89 Average number of shares 267 187 441 266 994 898 266 798 981 266 421 202 265 912 188

SolidityEquity ratio 19% 40% 45% 45% 42%Gearing 1.87 0.60 0.55 0.55 0.57 Net interest-bearing liabilities (NOK million) 4 008 2 568 2 966 3 007 3 024

Liquidity (NOK million)Cash and bank deposits 900 616 683 561 694 Liquidity reserve 2 209 2 414 2 145 2 013 1 931 Cash flow from operations 256 973 1 026 723 531 Cash flow from operations before non-recurring items 1 002 1 048 1 099 807 676Investments in fixed assets 297 398 484 425 378 Investments in in-house developed software 147 93 143 86 61 Free cash flow -187 482 396 211 92 Net working capital -789 94 269 463 621 Working capital as percent of revenues -6.1% 0.7% 2.1% 3.6% 4.8%

1) The financial figures for 2013 are restated due to implementation of IFRS 11 Joint Arrangements with effect from 1 January 2014 and the classification of EVRY Danmark A/S as discontinued operations.2) The financial figures for 2012 are restated due to implementation of changes in IAS 19 Employee Benefits.3) Excluding pension effect of NOK 112 million in 2011 (IAS 19).

Net interest-bearing liabilitiesTotal of current and long-term interest-bearing liabilities less cash and bank deposits. Net working capitalCurrent assets excluding bank deposits less non-interest-bearing current liabilities.

Free cash flowCash from operations less investment spending. Cash flow per shareNet cash flow from operations divided by average number of shares outstanding.

OUR BUSIN ESS

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Our footprint Corporate social responsibility People and culture

5 1CHAPT ER N AM E

52 OUR FOOTPRINT

Corporate social responsibilityEVRY operates IT systems that are critical to society and is committed to minimising its effect on the climate and environment as well as to ensuring compliance with its ethical guidelines. Annual performance targets are set for corporate social responsibil-ity, with the company’s executive management receiving regular reports on progress.

Systems critical to society and data protection Consequences of information security breaches can be significant for our customers and EVRY as a company. EVRY’s systematic work on information security means it is well-equipped to meet a steadily increasing threat level. We carry out awareness campaigns, participate in the National Security Month initiative and collaborate extensively with the Norwegian National Security Authority, the Norwegian Centre for Information Security, internet service providers and other relevant security teams both in Norway and abroad. EVRY par-ticipates in international standardisation work and is certified in accordance with all relevant national and international security standards. EVRY is strongly focused on data protection. We follow international work in the area very closely and work continuously to increase our expertise in the area.

Climate change and the environmentEVRY develops new solutions and products that help cre-ate low-carbon societies, and we are also reducing our own greenhouse gas emissions. The most important measures taken internally at EVRY are energy efficiency measures, digital interaction solutions, reducing business travel, sound procurement policies and waste management with a high level of reuse and recycling.

EVRY is working to consolidate its data centre operations. This involves migrating from older data centres to EVRY’s new data centre at Fet which uses an entirely new and innovative air cooling system to remove waste heat from hardware. The air cooling system, combined with EVRY’s use of modern and low-energy servers, make this one of the most energy efficient and sustainable data centres in the world.

The efficiency of data centres is measured by reference to their PUE (Power Utilization Efficiency), and EVRY’s new data centre has a PUE factor of 1.1. For comparison, tradi-tional data centres typically have PUE factors of between 1.8 and 2.

EVRY also helps significant environmental gains to be achieved by delivering digital solutions and services that reduce the effect its customers have on the environment. Examples of this include the change to online banking and the eGiro payments system in the banking and finance sector.

In the 2015 CDP Climate Change programme, EVRY achieved 97 out of 100 on Disclosure and B, on a scale from lowest score E to highest score A, on Performance. CDP’s climate change program works to reduce com-panies’ greenhouse gas emissions and mitigate climate change risk. CDP request information on the risks and opportunities of climate from the world’s largest com-panies on behalf of 827 institutional investor signatories with a combined USD 100 trillion in assets.

EVRY has reduced its CO2 emissions by 50% since 2011, with a reduction of 30% from 2014 to 2015. This is first of all due to energy efficiency programs in serverparks.

EthicsEVRY’s Code of Conduct sets the framework for how each employee should relate to customers and business partners, work to create a good and inclusive working fellowship, ensure diversity and contribute to achieving high environ-

5 3OUR FOOT PR IN T

mental standards. The Code of Conduct is available on the Group’s website and intranet. All employees read and sign the Code of Conduct each year. EVRY ensures its suppliers adhere to equivalent requirements by requiring them to comply with the EVRY Supplier Code Principles.

Anti-corruptionEVRY works actively to combat all forms of corruption. E-learning program and training courses are organised to ensure employees are trained to act in accordance with the Group’s guidelines on accepting gifts, travel and other benefits or activities, with training also provided on how to distance oneself from all forms of bribery and corruption. Employees in doubt about whether a particular situation or gift is permissible are also able to seek guidance from the company’s compliance unit.

EVRY has well-established ‘whistle-blower’ arrangements as well as procedures for dealing with suspected corruption at its businesses. EVRY received several whistle-blower notifications in 2015, none of which related to corruption.

Human RightsEVRY supports the UN’s Universal Declaration of Human Rights and related conventions. The company places particular emphasis on protecting the fundamental rights of employees as embodied in the ILO core conventions. EVRY’s Code of Conduct is aligned with the UN’s Global Compact.

EVRY’s suppliers have to satisfy the standards EVRY itself observes in all areas related to corporate social responsibility.

CertificationEVRY is certified in accordance with the following standards:

Certification Business area Expire date

ISO 9001-2008 EVRY Norway 2018-09EVRY Operations 2018-11EVRY Financial Services Operations 2016-11

ISO 27001-2013 EVRY Norway 2018-11EVRY Operations 2018-11EVRY Financial Services Operations 2016-11

ISO 14001-2004 EVRY Operations (Fornebu and Örebro) 2018-11PCI DSS EVRY Financial Services 2016

An important part of EVRY’s corporate management system is continuous improvement. Customer feedback on quality is measured and monitored via dedicated customer surveys and by a separate process for customer complaints, with reports produced for senior managers. In 2015 EVRY’s systematic quality work delivered good results, with a reduction seen in the total number of critical incidents.

Governing documents Governance information is approved by the company’s executive management and is published via its corporate management system, which is available to all employees.

54 OUR FOOTPRINT

People and culture EVRY works in a targeted way to create a safe, high-quality and inclusive working environment where everyone has the same opportunities. Significant resources are dedicated to competence and career development. In 2015 a survey conducted by Universum in Norway ranked EVRY as the fourth most attractive employer in the IT industry for new graduates.

Competence development EVRY took steps in 2015 to further emphasise its focus on competence development. We have designed a training academy for the entire group, known as the EVRY Academy. This creates a stronger connection between important commercial decisions, strategic competence development and the company’s attractiveness as an employer, as well as helping to create a common corporate culture across the Group. The EVRY Academy was launched in March 2015.

All employees have regular appraisal meetings with their line manager, as part of which their personal and compe-tence development targets are set for the coming year. Per-sonal targets and development plans for each employee are recorded in a competence development system, together with information on the employee’s technical expertise, experience and CV. The Group has established one career model for all employees with six separate job families at five levels.

EVRY endeavours to ensure that all new employees get the best possible start at the Group. An introduction course is held on the first Monday of each month for all new employ-ees, at which they receive a welcome package consisting of information and practical equipment.

Working environment and employee satisfactionThe Group has a good working environment. The employee satisfaction survey for 2015 yielded a score of 75.3 out of 100 for employee satisfaction. This is slightly weaker than in 2014, but represents a good result in view of the sizeable restructur-ing measures carried out at EVRY in 2015.

Key topics for the employee satisfaction survey are the working environment, employee motivation, commitment, management, reputation and engagement with EVRY’s corporate values. The survey leads to the introduction of specific improvement measures. In 2016 simpler surveys will be carried out more frequently.

Inclusive working environmentEVRY strives to create a good working environment that is free of discrimination, whether on grounds of religion, skin colour, gender, sexual orientation, age, functional disability or national or ethnic origin.

The Norwegian part of the Group has entered into an agree-ment for “Inclusive Working Environment” to strengthen the focus on working environment programs, measures to reduce absence due to sickness, and diversity. The Group collaborates with Telenor Open Mind and routinely offers work experience placements for individuals with disabilities.

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39 years

#4

75.3%26%

Percentage of women

Universum

Employee satisfaction

Sick leave

Norway: 3.4%

Sweden: 3.0%

Latvia: 3.1%

India: 1.4%

Ukraine: 1.2%

Average age

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From the Boardroom The Board of Directors of EVRY Corporate governance Report from the Board of Directors 2015

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58 FROM THE B OARDROOM

FROM LEFT:

Salim Nathoo, Rohan Haldea, Francisco Menjibar, Ellen de Kreij, Göran Lindahl, Louise Sondergaard, Jan Dahlström, Ingrid Lund, Eirik Bornøand Ola Hugo Jordhøy

5 9FROM THE BOAR D ROOM

The Board of Directors of EVRY

Salim NathooCHAIRMAN OF THE BOARD

Experience: Salim Nathoo is a Partner in the Tech & Telco team at Apax Partners and is based in London. He joined Apax Partners in 1999 and specialises in the Tech and Telecom space. Prior to joining Apax, Salim Nathoo was a consultant at McKinsey where he specialised in advising clients in the telecom sector.

Education: An MBA from INSEAD and an MA in Mathematics from the University of Cambridge.

Ellen de KreijBOARD MEMBER ELECTED BY SHAREHOLDERS

Experience: Ellen de Kreij is a member of Apax Partners’ Investor Relations team in London and focuses particularly on European investors. She is also responsible for the implementation of the Apax sustainability programme. She joined Apax Partners in 2002 as Director of Deal Generation and became a Director in the Investor Relations team in 2010.

Education: An MA in Dutch Civil Law from the University of Leiden and an MBA from Harvard Business School.

Jan DahlströmBOARD MEMBER ELECTED BY EMPLOYEES

Experience: Jan Dahlström is a Senior Project Manager at EVRY. He has also held board appointments at various stock exchange listed companies in Sweden.

Education: Higher education qualifications in medicine from the University of Gothenburg and in business engineering from the IHM Business School.

Ola Hugo JordhøyBOARD MEMBER ELECTED BY EMPLOYEES

Experience: Ola Hugo Jordhøy is a Chief Consultant in Mobility and Communication at EVRY and has many years’ experience in IT and telecommunications. Jordhøy is the head of Tekna’s representation at EVRY.

Education: A Master’s degree in Electrical Engineering from the Norwegian University of Science and Technology, and post-graduate teaching qualifications.

Rohan HaldeaBOARD MEMBER ELECTED BY SHAREHOLDERS

Experience: Rohan Haldea is a Partner in the Tech & Telco team at Apax. He joined Apax Partners in 2007 and is based in London. Prior to joining Apax, he was an Associate at Bain Capital in their North American private equity division in New York, where he specialised in evaluating and executing transactions in the industrial, distribution and retail sectors. Haldea has also worked as a consultant at McKinsey in India.

Education: An MBA from Harvard Business School and a Bachelor of Technolog in Manufacturing Sciences and Engineering from the Indian Institute of Technology, New Delhi.

Göran LindahlBOARD MEMBER ELECTED BY SHAREHOLDERS

Experience: Göran Lindahl was the CEO and president of the global technology and engineering group ABB Ltd from 1997 to 2000, and spent more than 30 years in various positions in the ABB Group. Göran has also previously served on the Boards of Atlas Copco AB, EI du Pont de Nemours and Company, the Sony Corporation, Ericsson and Saab. He has also worked as a special advisor to UN Secretary General Kofi Annan.

Education: A Master’s degree in Electrical Engineering from Chalmers University of Technology in Gothenburg, Sweden.

Ingrid LundBOARD MEMBER ELECTED BY EMPLOYEES

Experience: Ingrid Lund is employed as a Senior Consultant and has worked in the IT sector since 1985, holding various positions in both the private and public sectors. Her previous board appointments include membership of the Boards of EDB Norway and EDB ASA and as deputy representative on the Board of the Telenor Pension Fund.

Education: A foundation course in law and legal science.

Francisco MenjibarBOARD MEMBER ELECTED BY SHAREHOLDERS

Experience: Francisco Menjibar is a Principal in the Tech and Telco team at Apax and is based in the London office, where he specialises in the technology and telecommunication sectors. He has previously worked at the private equity company Magnum Industrial Partners and the international consulting company Oliver Wyman.

Education: A Master’s degree in Computer Science from the Centro Politécnico Superior de Zaragoza (Spain) and an MBA from The Wharton School of the University of Pennsylvania.

Louise Sondergaard BOARD MEMBER ELECTED BY SHAREHOLDERS

Experience: Louise Sondergaard is a member of the Tech and Telco team at Apax Partners. She joined Apax in 2014 and is based in London. Prior to joining Apax Partners, Louise Sondergaard was an Associate at McKinsey & Company in London, where she primarily worked on restructuring, transformation and strategy topics.

Education: An MSc from London Business School (with distinction) and a BSc in International Business from Copenhagen Business School.

Eirik BornøBOARD MEMBER ELECTED BY EMPLOYEES

Experience: Eirik Bornø is currently employed as a Senior Employee Representative, Negotia in EVRY, and has many years of experience as a DB2 systems programmer. He has also been a premises manager in the company and is now second Vice President of the Federation Board of Negotia.

Education: Higher education qualifications in administrative data processing from Polytekniske høyskolen and in human resource management and employment law from Buskerud University College.

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Corporate governance EVRY is committed to healthy corporate governance that strengthens confidence in the company and contributes to optimal value creation over time. The objective of corporate governance is to regulate the division of roles between shareholders, the Board of Directors and executive management more comprehensively than is required by legislation.

Our principles:• EVRY will provide open, reliable and relevant com-

munication to the outside world about the company’s activities and its corporate governance

• EVRY’s Board of Directors will be autonomous, and independent of the group’s executive management

• EVRY will pay particular attention to ensuring that there are no conflicts of interest between the interests of its shareholders, the members of its Board of Directors and its executive management

• EVRY will ensure a clear division of responsibility between the Board of Directors and the executive management

• EVRY will treat all shareholders equally

1. Implementation and reporting on corporate governanceEVRY’s Board of Directors (the “Board”) has the ultimate responsibility for ensuring that the company practices good corporate governance. The Board and executive manage-ment carry out a thorough review and evaluation of the principles for corporate governance on an annual basis.

EVRY AS is a Norwegian private limited company. The company was converted to a private limited company from a public limited company by an extraordinary general meeting on 22 February 2016. The company is no longer listed on Oslo Børs. The Norwegian Accounting Act includes provisions on corporate governance at Section 3-3b which impose a duty on the company to issue an annual report on its principles and practice for corporate governance. These provisions also stipulate minimum requirements for the content of this report.

Confidence in EVRY as a company and in its business activities as a whole is essential for the Group’s continuing competitiveness.

EVRY is committed to openness about its systems and pro-cedures for the management of the Group. This strengthens value creation and builds internal and external confidence, while at the same time promoting an ethical and sustainable approach to business.

The Board has approved comprehensive guidelines for business ethics (Code of Conduct). The Group carries out annual measures in all business areas to ensure employee awareness of, and commitment to, the Code of Conduct. Each year, all employees of the Group, including employees of wholly-owned subsidiary companies, must sign a declara-tion to confirm that they have read and understood the Code of Conduct. All new employees receive training in the Code of Conduct as part of their introductory training program, and must sign a declaration to confirm that they have read and understood the guidelines.

The EVRY website at www.evry.com provides more infor-mation about the company’s corporate vision and business concept as well information on the company’s policy for social responsibility and its Code of Conduct.

2. BusinessThe business objective of EVRY AS is defined in Article 3 of the company’s Articles of Association, which states that:

“The company’s business is to develop, manage and operate its own and other parties’ IT solutions, to sell services and consultancy and any activities related to the foregoing. These activities may be carried out by the company itself, by its subsidiaries or through participation in other companies and collaboration with other parties.”

EVRY’s Articles of Association are available on the EVRY website at www.evry.com. The Articles of Association were most recently updated on 22 February 2016.

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3. Equity and dividend policyThe book value of the Group’s equity at 31 December 2015 was NOK 2 145.6 million, representing an equity ratio of 19%. The Board considers this to be satisfactory. The Group’s capital adequacy is kept under constant review in relation to its objectives, strategy and risk profile.

The company’s objective is to generate a return for its shareholders through dividends and increases in the share price that is at least in line with the return available on similar investment opportunities of comparable risk. The Board proposes a dividend if it is satisfied that this will not have an adverse effect on the company’s future growth ambitions and capital structure. The company’s dividend policy is to pay an annual dividend to shareholders equivalent to 20-50% of normalised post-tax profit. Extraordinary dividends may be distributed in particular circumstances, and will be evaluated on a case by case basis.

In connection with Lyngen Bidco AS acquiring 88% of the share capital of EVRY AS, an Extraordinary General Meeting held on 23 March 2015 approved an extraordinary dividend of NOK 3.76 per share, equivalent to NOK 1 004 million.

The Board did not hold any mandates in respect of increases in share capital or purchases of own shares at 31 December 2015, and will not propose any increase in share capital or request a mandate for increases in share capital at the Annual General Meeting, which is due to be held on 3 May 2016.

EVRY AS did not carry out any capital transactions in 2015. The company did not hold any of its own shares at the end of 2015.

4. Equal treatment of shareholders and transactions with close associatesEVRY has only one class of shares, and any purchases or sales of own shares are carried out via Verdipapirsentralen ASA (VPS). Transfers of shares shall be subject to board approval in accordance with the provisions of the Norwegian Private Limited Liability Companies Act. The Articles of Association do not impose any restrictions on voting rights and all shares have equal voting rights.

EVRY’s Board and executive management are committed to treating all the company’s shareholders equally. At the close of 2015, Lyngen Bidco AS held 88% of the share capital of EVRY AS. The remaining share capital is spread among approximately 600 shareholders.

The Board will obtain independent valuations for any material transactions between the company and its shareholders, parent companies of its shareholders, members of the Board, executive personnel or any close associates of such parties.

The company has guidelines in place to ensure that mem-bers of the Board and executive personnel notify the Board if they have any material interest, directly or indirectly, in an agreement entered into by the company.

5. General MeetingsThe Annual General Meeting (“AGM”) is the company’s ultimate corporate body. The Board strives to ensure that AGMs are an effective forum for communication between shareholders and the Board.

The AGM is usually held before 1 June each year, and in any case no later than 30 June, which is the latest date permitted by company law. The 2015 AGM was held on 13 May. The 2016 AGM will be held on 3 May.

The notice calling the AGM and any Extraordinary General Meeting is made available on the company’s website (www. evry.com) and with effect from February 2016 is sent to all shareholders no later than one week in advance of the meeting. Article 8 of EVRY’s Articles of Association stipulates that the supporting documents dealing with matters to be considered at a meeting can be made available on the company’s website rather than being sent to shareholders by post. However, shareholders are still entitled to receive the documents by post upon request if they so wish.

The supporting documentation provides all the necessary information for shareholders to form a view on the matters to be considered. In accordance with the company’s Articles of Association, shareholders wishing to attend a general meeting must notify the company by the deadline given in the notice calling the meeting, which can be no earlier than two days before the meeting.

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Shareholders must give written notice of their intention to attend a general meeting, either by post, electronic registration or e-mail. Shareholders who are unable to attend a meeting are encouraged to appoint a proxy. The arrangements for appointing a proxy allow shareholders to specify how their proxy should vote on each matter to be considered. Representatives from the Board attend general meetings, and the auditor also attends the AGM. The executive management is represented at general meetings with, at a minimum, the CEO and the CFO attending.

The Board decides the agenda for general meetings. The main agenda items for the AGM are determined by the requirements of the Private Limited Liability Companies Act. Each general meeting appoints a chairperson for the meeting, thereby ensuring that each general meeting has an independent chairperson in accordance with the recommendations of the Code of Practice. The CEO gives a presentation of the Group at each AGM. The Audit Committee and the Compensation Committee present their work over the past 12 months. The minutes from general meetings are made available on the EVRY website at www.evry.com.

6. Election CommitteeEVRY has an Election Committee consisting of three members. The members of the Election Committee are elected by the AGM after considering proposals made by the current Election Committee. The members of the Election Committee serve for a two-year term of office.

The Election Committee’s duties are to nominate candi-dates for consideration by the AGM for appointment as shareholder-elected members of the Board, including the Chairman, and any deputy members for shareholder-elected members, and to nominate candidates for the members of the Election Committee. The mandate for the Election Committee includes guidance on selecting suitable candi-dates to ensure an appropriate composition of expertise on the Board. The Election Committee is also responsible for carrying out an annual review of the remuneration paid to the members and deputy members of the Board and submitting specific proposals in this respect to the AGM.

The 2015 AGM approved the election of the following as members of the Election Committee for a term of office of up to two years.

The members of the Election Committee with effect from the 2015 AGM are:• Francisco Menjibar (Chair)• Arthur Brothag• Mark Richard

7. Board of Directors: composition and independenceThe Board of Directors of EVRY is elected by the Annual General Meeting. The arrangements for the election of the Board are now stipulated in Article 6 of the Articles of Association.

The Board of EVRY AS comprises 10 members. Six members of the Board, of whom two are women, are elected by shareholders, and four members, of whom one is a woman, are elected by employees. The shareholder-elected mem-bers represent varied and broad experience from relevant industries and areas of technical speciality, and the members bring experience from both Nordic and international compa-nies. One shareholder-elected board member is considered to be independent of the company’s main shareholders and material business contacts. The Board does not include any members from the company’s executive personnel.

EVRY believes that the Board as a whole represents the best interests of all the company’s shareholders.

The Board has rules on conflicts of interest to ensure that any potential conflicts are identified and handled in a profes-sional manner. The Board’s guidelines require that members must notify the Chairman if the Board is to consider any matter in which they may have a financial interest or are oth-erwise involved. EVRY does not have a corporate assembly by agreement between the company’s trade unions, Board and executive management.

An updated overview of the members of the Board of EVRY AS is provided on the company’s website at www.evry.com.

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8. The work of the BoardThe Board has the ultimate responsibility for the management of the Group and supervising its day-to-day management and activities in general. This includes developing the company’s strategy and monitoring its implementation. In addition, the Board exercises supervision responsibilities to ensure that the company manages its business and assets and carries out risk management in a prudent and satisfactory manner.

The CEO is appointed by the Board of Directors. The Board issues a mandate for the work of the CEO. There is a clear division of responsibilities between the Board and the CEO. The CEO is responsible for the operational management of the Group.

The Board holds regular meetings and a strategy meeting each year. Extraordinary Board meetings are held as and when required to consider matters that cannot wait until the next regular meeting. In addition, the Board has appointed an Audit Committee and a Compensation Committee to work on matters in these areas.

Audit CommitteeThe Audit Committee is appointed by the Board, and its main responsibilities are to supervise the Group’s systems for internal control, and to ensure that the auditor is independent and that the annual accounts give a fair picture of the Group’s financial results and financial condition in accordance with generally accepted accounting practice. The Audit Commit-tee has reviewed the procedures for risk management and financial controls in the major areas of the Group’s business activities. The Audit Committee receives reports on the work of the external auditor and the results of the audit. In addition, the company has appointed a head of Internal Audit who is responsible for the internal audit function.

The members of the Audit Committee as of 31 December 2015 were: • Salim Nathoo, Chair• Rohan Haldea• Eirik Bornø

Compensation CommitteeThe Compensation Committee makes proposals to the

Board on the employment terms and conditions and total remuneration of the CEO and other executive personnel. These proposals are also relevant for other employees.

The members of the Compensation Committee as of 31 December 2015 were:• Salim Nathoo, Chair• Rohan Haldea• Knut Göran Lindahl• Ingrid Lund

Arrangements for anonymous employee contact with the Board EVRY places great importance on ensuring that employees can freely express their views and provide feedback to the Board. In order to ensure anonymity, the Board has set up a contact point for ‘whistleblowers’ through the law firm Hestenes og Dramer & Co in Oslo to ensure that information can be submitted without the company knowing the identity of the sender. The Board has drawn up a specific policy for the handling of such referrals, including arrangements to monitor the progress of each case.

9. Risk management and internal controlEVRY’s risk management and internal control is based on elements of the COSO framework, and helps ensure that EVRY has unified control in place that covers the company’s operational activities, financial reporting and compliance with legislation and regulation.

EVRY has a separate internal audit department, which reports directly to the Board and the Audit Committee. The Board has approved a mandate that defines the objectives, authority and responsibility of the internal audit function. The internal audit department is managed by the head of Internal Audit, and has four full-time equivalent employees. The department’s work is based on an annual program and annual report that is evaluated and approved by the Board.

EVRY is not subject to direct supervision by Finanstilsynet (the Financial Supervisory Authority of Norway), but Finanstil-synet can exercise control over the Group through the banks that are customers of the company in accordance with the ICT regulations.

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Operational controlEVRY has implemented an Approval Authority Matrix and guidelines to specify the level of authority granted to individuals and the next level of authority required to decide or approve matters beyond the individual’s authority. The level of authority delegated to the CEO is approved by the Board, and the entire Approval Authority Matrix, i.e. the manner in which the CEO delegates this authority, has been considered and approved by the executive management and reviewed by the Audit Committee. The Group’s organ-isational structure defines five levels of decision-making committees, which have clearly defined authority limits for all the relevant types of decisions.

EVRY has a legal department, managed by the in-house attorney who reports directly to the CFO. The head of the legal department also fulfils the role of secretary to the Board and therefore has direct access to members of the Board. Procedures and guidelines are in place to ensure that the legal department is involved in all activities over a certain size that might represent legal risks for the Group, including bid-ding for contracts and entering into agreements. The Group has standard policies for contract terms and conditions that are used when entering into contracts.

EVRY’s CEO and CFO hold monthly status meetings with each business area. These meetings review commercial per-formance and decide on appropriate follow-up measures.

EVRY’s framework for risk management uses a predefined process and methodology, and work is underway to ensure that this framework is harmonised throughout the company. The CEO and Board receive periodic reports on risk management.

The company strives to adapt its control processes to local operations and to ensure a pro-active approach to risk management, so that the risks involved in normal operations are systematically identified, analysed and managed. It also ensures that risk exposure is continually monitored. Correc-tive measures are identified and defined, as is responsibility for following up specific risk areas.

EVRY also continually monitors market conditions and key economic figures that provide the basis for evaluating financial risk.

Risk related to financial reporting EDB Business Partner ASA was a subsidiary of Telenor ASA prior to the merger with ErgoGroup AS in October 2010. As a result of this relationship, EDB Business Partner ASA was subject to the Sarbanes Oxley Act (SOX) because Telenor ASA was listed on the NASDAQ exchange.

In accordance with the need for sound internal control and management systems, the Board of EVRY has decided that the company will continue to comply with certain aspects of the requirements of the Sarbanes Oxley Act. This requires extensive documentation of internal control for significant and key processes in the company. This reporting serves to improve the quality of the company’s control systems and of its financial and operational reporting procedures. Extensive testing is carried out to ensure compliance with the established controls.

Neither EVRY’s executive management nor its auditor reported any substantive weaknesses in the related internal control systems at 31 December 2015.

Compliance with laws and regulationsCompliance with legislation and regulations, both in Norway and other countries in which the company operates, is ensured by means of the Group’s governance structure. The important participants in this structure are the Group’s compliance function, group risk management, the executive management of each business area and the company’s legal department. The Group’s four compliance managers report on compliance matters to the Group Compliance Officer on a quarterly basis. The Group Compliance Officer in turn reports to the Audit Committee/the Board of Directors.

As mentioned above, the company has formal guidelines for business ethics and social responsibility in the form of a Code of Conduct. All employees are required to confirm their understanding of and compliance with the Code of Conduct on an annual basis. The Code of Conduct is managed by the Legal Department acting on behalf of the executive management.

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Annual review of internal control by the BoardThe Board receives regular reports on risk management at its meetings, through routine financial reporting and the executive management’s reports on each business area.

In addition to its regular reviews of risk management, the Board carries out an annual review of the Group’s internal control systems and the major risk factors to which the Group is exposed. The Board evaluates whether the systems are sufficient, appropriate and properly applied.

10. Remuneration of the Board of Directors and the Election CommitteeThe remuneration paid to the members of the Board is decided by the AGM having considered proposals by the Election Committee.

The remuneration paid to the members of the Board is not dependent on the company’s earnings. The notes to the accounts provide information on the remuneration paid to the Board in 2015.

11. AuditorErnst & Young is the auditor for EVRY.

The auditor attends at least one meeting each year with the Board at which the company’s management is not repre-sented. The auditor participates at meetings of the Board that consider the annual accounts and participates at all meetings of the Audit Committee.

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Report from the Board of Directors 20152015 was defined by a significant restructuring of EVRY’s activities in both Norway and Sweden. The aim of the restructuring work was to improve operational efficiency and bring EVRY’s cost base into line with its market position and rate of growth. The benefits of the efficiency work are expected to be seen as early as 2016.

A thorough review of the Group’s cost base in 2015 concluded that EVRY’s costs were too high, and that they were out of line with EVRY’s market position and rate of growth. Therefore, a range of cost reduction measures were implemented to strengthen the Group’s profitability and long-term competitiveness. These measures affect all business areas and are intended to reduce the Group’s cost base in 2016. They include realising the synergies arising from the reorganisation of the Norway business area: The Industries Norway and Regions Norway divisions have been combined to simplify their organisational structure and increase their efficiency. A new simplified operating model has been introduced in Sweden to reduce the number of legal units, harmonise operations, create synergies and increase efficiency. The Group has also reduced its sales and administrative costs by improv-ing the efficiency of its staff and support functions at both the Group and divisional level.

With effect from 1 December 2015, the Group has entered into a 10-year agreement with IBM to strengthen its infrastruc-ture solutions. EVRY will continue to lead the development of value-adding infrastructure services for its customers and will combine this with IBM’s innovative cloud technology and global capabilities. The agreement means that EVRY will partner with IBM for the operation of its basic infrastructure platforms, and it covers the mainframe, Unix and Wintel platforms. EVRY will continue to take full responsibility for customers and deliveries and will also continue to manage its data centres, while IBM will operate the technology. The estimated revenue value is USD one billion over the contract period, a result of the IBM agreement, looking to 2016, EVRY expects to reduce its cost base significantly within the outsourcing area. EVRY also expects to increase its competi-tiveness in the market and thus increase revenues.

The company will invest significantly in cloud-based infra-structure solutions over the next three years in order to offer its customers scalable, market-leading solutions on a global platform. Significant provisions have therefore been made on the Group’s balance sheet as of 31 December 2015 in relation to the planned transitions and customer transfor-mations needed to convert to IBM’s platform technology. In total, approximately 200 customers are covered by the conversion to IBM’s platform technology. On 1 December 2015, 429 employees from EVRY’s Nordic organisation were transferred to IBM.

EVRY’s consolidated operating revenue for 2015 was NOK 12 860 million compared to NOK 12 773 million in 2014. In organic terms, this corresponds to a 0.4% decrease in operating revenue.

In 2015 the Group’s operating result, before write-downs of intangible assets (EBITA), was a loss of NOK 1 405 million, compared to a profit of NOK 543 million in 2014. In 2015 the Group reported non-recurring items of NOK 2 216 million (before NOK 136 million in intangible asset write-downs) and, after adjusting for this, consolidated EBITA in 2015 was NOK 811 million. In 2014 the Group reported non-recurring items of NOK 271 million (before NOK 1 164 million in goodwill write-downs) and, after adjusting for this, consol-idated EBITA in 2014 was NOK 813 million. EBITA margin before non-recurring items was 6.3% in 2015, compared to 6.4% in 2014.

The operating result (EBIT) for 2015 was a loss of NOK 1 566 million, compared to a loss of NOK 655 million in 2014. After adjusting for non-recurring items, EBIT for 2015 was a profit of NOK 789 million, compared to a profit of NOK 780 million in 2014. Net financial expense for 2015 totalled NOK 330 million as compared to NOK 87 million in 2014.

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Earnings per share for 2015 was NOK -5.28 as compared to NOK -3.26 in 2014.

Financial statementsOperating revenueThe Group’s operating revenue in 2015 was NOK 12 860 million, compared to NOK 12 773 million in 2014. Organic revenue reported by the EVRY Financial Services and EVRY Sweden segments decreased by 3% and 4% respectively. Good growth was seen in the Nordic card area in 2015, but this was offset by a reduction in revenue from DNB. The EVRY Norway segment reported organic revenue in line with 2014.

Operating result (EBIT)The Group’s operating result (EBIT) in 2015 was a loss of NOK 1 566 million, compared to a loss of NOK 655 million in 2014. EBIT was negatively impacted in 2015 by non-recurring costs totalling NOK 2 352 million, of which NOK 1 234 million relates to write-downs of balance sheet items and provisions related to the operations agreement with IBM and the decided transitions and customer transfor-mations needed to convert to IBM’s platform technology. In addition, costs totalling NOK 510 million were recognised in connection with the restructuring measures, while balance sheet items related to the Future Proof program were written down by a total of NOK 293 million.

EBIT was negatively affected in 2014 by non-recurring costs totalling NOK 1 436 million, of which NOK 1 164 million relates to a goodwill write-down. In addition, costs totalling NOK 120 million were recognised in 2014 in connection with restructuring measures, while a project in the EVRY Norway segment was written down by NOK 34 million. Refer to note 2 of the consolidated accounts for a more detailed breakdown of non-recurring costs.

Depreciation of tangible assets and in-house developed software amounted to NOK 467 million in 2015, with in-house developed software accounting for NOK 84 million of this amount. On a comparable basis, depreciation amounted to NOK 477 million in 2014, with depreciation of in-house developed software accounting for NOK 92 million of this amount.

Amortisation of intangible assets amounted to NOK 25 million in 2015 as compared to NOK 33 million in 2014. Intangible assets were written down by NOK 136 million in 2015, all of which related to the Future Proof program. Intangible assets were written down by NOK 1 164 million in 2014, all of which related to goodwill.

Net financial items and result for the year before and after tax Net financial expense was NOK 330 million in 2015, while the pre-tax result from continuing operations was a loss of NOK 1 896 million. Tax expense by the Group for the year totalled NOK -455 million in 2015, and the post-tax result for the year from continuing operations was a loss of NOK 1 441 million. The post-tax result from discontinued operations in 2015 was a profit of NOK 30 million. In 2014, the company decided to close down its SAP activities in Denmark. The financial results relating to these activities are now reported separately in the consolidated statement of comprehensive income as a separate line.

On a comparable basis, net financial expense was NOK 87 million in 2014, while the pre-tax result from continu-ing operations was a loss of NOK 743 million. Tax expense by the Group for the year totalled NOK 86 million in 2014, and the post-tax result from continuing operations was a loss of NOK 829 million. The post-tax result from discontinued operations in 2014 was a loss of NOK 42 million.

Cash flow and financial position The Group’s net cash flow from operations was NOK 217 million in 2015, compared to NOK 973 million in 2014. The decrease in net cash flow from operations is mainly due to the decrease in the Group’s operating result before depreciation and write-downs (EBITDA), and an increase in the company’s financing costs of NOK 257 million, as a result of increased interests on the Group’s borrowing portfolio. The Group’s underlying working capital position improved throughout 2015. The Group’s free cash flow for 2015 was NOK -154 million, compared to NOK 558 million in 2014.

Investment in tangible assets totalled NOK 297 million in 2015, down from NOK 398 million in 2014. Investment in the Future Proof program accounted for NOK 10 million of the 2015 amount and NOK 77 million of the 2014 amount. Investment in software developed in-house totalled NOK 147 million in 2015, compared to NOK 93 million in 2014. Investment by the EVRY Financial Services segment was higher in 2015 than in 2014, and principally related to the development of new core banking and payment solutions based on industry standards such as ISO 20022, SOA and BIAN, and adapted to an international market. Other development work carried out by the Group relates to customer-specific projects where the revenue associated with the projects will exceed the development costs.

Net cash flow from financing in 2015 was NOK 449 million, which included payment of a dividend totalling NOK 1 004 million. The Group refinanced its entire borrowing portfolio

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in 2015, and in connection with this, took out new loans totalling NOK 4.4 billion. The Group reported liquidity reserves of NOK 2 209 million at the end of 2015, compared to NOK 2,414 million at the end of 2014.

The Group’s total assets amounted to NOK 11 078 million at 31 December 2015, compared to NOK 10 703 million at 31 December 2014. Intangible assets increased due to higher deferred tax assets, while tangible assets decreased due to a lower level of investment in 2015 as well as sales of equip-ment in connection with the operations agreement with IBM. Total non-current assets amounted to NOK 7 435 million at 31 December 2015, of which goodwill accounted for 76%. At the end of 2014, non-current assets amounted to NOK 7 107 million, of which goodwill accounted for 77%.

Working capital was equivalent to -5.4% of revenue at the close of 2015, while average working capital at the end of each of the four quarters in the year was equivalent to 0.8% of revenue. This represents a reduction of 2.1 percentage points compared with the end of 2014. The company has worked continuously to reduce working capital, and accounts receivable are lower due to EVRY having entered into factoring agreements for some parts of its customer portfolio.

The Group’s equity was NOK 2 146 million at 31 December 2015, equivalent to an equity ratio of 19%. This represents a decrease from NOK 4 277 million at the end of 2014, which was equivalent to an equity ratio of 40%.

Net interest-bearing debt was NOK 4 008 million at 31 December 2015, an increase of NOK 1 440 million from 31 December 2014. This represents a debt ratio of 1.87 at the close of 2015 as compared with 0.60 at the close of 2014.

Reporting segmentsThe Group reported for three segments in 2015: EVRY Financial Services, EVRY Norway and EVRY Sweden. In 2015, the EVRY Financial Services segment accounted for 27% of total revenues before eliminations, while the EVRY Sweden segment accounted for 27% and the EVRY Norway segment for 46%.

Note 2 of the consolidated accounts provides more detailed information on the Group’s reporting segments.

EVRY Financial Services segmentEVRY Financial Services offers a broad portfolio of solutions and services, and is a complete industry vertical respon-sible for all the company’s deliveries to bank and finance

customers. The solutions portfolio includes solutions for all core banking services, whether this relates to interfaces with end-customers or solutions to support a bank’s internal processes and employees. The portfolio is module-based, and includes banking services, transactions systems, pay-ment solutions and card services. The portfolio also includes a unique value chain of card services that are delivered to banks in the Nordic countries and the United Kingdom.

The EVRY Financial Services segment reported operating revenue of NOK 3 576 million in 2015, representing a decrease in organic revenue of 3% from 2014. There was particularly strong revenue growth in the Nordic card services area in 2015, but this was offset by a decrease in revenue from DNB.

The EVRY Financial Services segment generated EBITA of NOK 335 million in 2015, compared to NOK 371 million in 2014. EBITA margin for 2015 was 9.4% as compared to 10.1% in 2014.

The EVRY Financial Services segment’s order backlog at 31 December 2015 was NOK 7.4 billion, of which NOK 2.6 billion is due for delivery in 2016.

EVRY Sweden segmentThe EVRY Sweden segment offers everything from strategic advice and consulting services through to solutions and IT operating services. EVRY Sweden offers a significant port-folio of industry vertical solutions that combine industry-spe-cific insight and business understanding with technological expertise. EVRY Sweden also delivers specialist services independent of geographic location and sector based on strong specialist expertise, for example ERP solutions, mobility, cloud-based solutions and Business Intelligence. EVRY Sweden also has its own operating services organisa-tion, which focuses on medium-sized businesses and entities in the private and public sectors.

The EVRY Sweden segment reported operating revenue of NOK 3 489 million in 2015, representing a 4% decrease in organic revenue.

EBITA in 2015 was NOK 241 million, representing an EBITA margin of 6.9%. EBITA in 2014 was NOK 255 million, with an EBITA margin of 7.3%.

The EVRY Sweden segments contractually agreed order backlog at 31 December 2015 was NOK 2.7 billion, of which NOK 1.4 billion is due for delivery in 2016.

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EVRY Norway segmentThe EVRY Norway segment offers consulting, infrastructure and operating services. EVRY Norway has a significant position in the local government and healthcare sectors, and is currently strengthening its position in other industries including retail, oil and gas, and insurance. Through its extensive activities, EVRY Norway has in-depth technical expertise in specialist services that are independent of geographic location and sector. This includes growth areas such as mobility, cloud-based solutions and Business Intelligence. The EVRY Norway segment also includes the Group’s Global Sourcing activities for reporting purposes.

The EVRY Norway segment reported operating revenue of NOK 6 085 million in 2015, which is in line with 2014.

Global Sourcing activities accounted for 14% of the segment’s revenue in 2015, with sound organic growth throughout 2015. Deliveries from operations’ centres in India, Ukraine and Latvia to the Group’s Nordic organisation account for some 40% of total revenues for EVRY’s Global Sourcing businesses. The remaining revenues relate to other customers, and this ensures that the Global Sourcing operations centres have a profitable and scalable business model.

The EVRY Norway segment generated EBITA of NOK 326 million in 2015, representing an EBITA margin of 5.4%. By comparison, EBITA was NOK 322 million in 2014, represent-ing an EBITA margin of 5.3%.

At the end of 2015, the segment had 2 660 employees in its Norwegian activities and 3 341 employees in its Global Sourcing companies. The comparable headcount figures for the end of 2014 were 3 344 and 3 103 employees.

The EVRY Norway segment’s order backlog at 31 Decem-ber 2015 was NOK 6.5 billion, of which NOK 3.2 billion is due for delivery in 2016.

The structure of EVRY in 2015 EVRY AS is a private limited company and the company’s head office is at Fornebu outside Oslo. The company was converted to a private limited company from a public limited company on 22 February 2016. The company also changed its name from EVRY ASA to EVRY AS. The executive management team had eight members in 2015 and was led by CEO Björn Ivroth from 24 March 2015. Björn Ivroth took over as CEO from Terje Mjøs.

The Group mainly carries out its activities through whol-ly-owned companies in Norway, Sweden, Denmark and

Finland. The Group also operates businesses in Great Britain, India, Ukraine and Latvia.

EVRY sees the Nordic region as its natural home market. The Group operates from locations in 50 Nordic towns and cities, principally in Norway and Sweden, providing the expertise to serve customers locally. The company is committed to operate with a decentralised organisation that is able to respond rapidly to customers, and has therefore ensured that decision-making authority is delegated appropriately. The company considers it very important to ensure that the local offices can draw upon the expertise and strengths that the Group as a whole represents. This is achieved through appropriate organisational and reporting arrangements and a group-wide program, as well as through arrangements for marketing and customer relationship management. In addition to its activities in the Nordic region, EVRY has wholly-owned companies in India and Ukraine that represent a major part of the company’s overall delivery capacity.

The overall Nordic IT services market is estimated to be worth around NOK 134 billion. Figures from the market intelligence firm IDC show that EVRY is currently the second largest vendor in the Nordic IT services market, the clear market leader in Norway and the fourth largest vendor in the Swedish market. The Group’s market share is estimated to be 28.9% in Norway and 7.6% in Sweden.

External environmentEVRY is committed to a program that brings continuous improvement to the environment. The company’s environ-mental policy emphasises that EVRY is committed to being a pioneer in respecting the natural environment, both by minimising its own environmental impact and by devel-oping, promoting and adopting environmentally friendly technologies. EVRY recognises its duty to take into account the environmental effects that work-related activities have on the environment, and to choose environmentally friendly solutions to the greatest extent possible. Energy efficiency improvements achieved through technological develop-ments are an important contribution to making the company greener, which benefits society as a whole. Systematic work is also undertaken on waste management, reducing business travel by using digital interaction solutions, procurement policy, as well as setting requirements for subcontractors and monitoring their compliance. EVRY works in close collabo-ration with its customers and partners to develop solutions that promote efficiency and reduce energy consumption, in order to generate energy savings far beyond what it is able to achieve via its own operations.

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EVRY stepped up work on consolidating its data centres in 2015. Its new data centre at Fet uses an entirely new and innovative air cooling system to remove waste heat from hardware. The air cooling system, combined with EVRY’s use of modern low-energy servers, make this one of the most energy efficient and sustainable data centres in the world. The efficiency of data centres is measured by reference to their PUE (Power Utilisation Efficiency). While traditional data centres typically have a PUE factor of 1.8 to 2, EVRY’s new data centre has a PUE factor of 1.1.

EVRY produces a climate report each year in accordance with the GHG Protocol guidelines which it submits to the investor-led Carbon Disclosure Project (CDP). EVRY is on the CDP’s Climate Performance Leadership Index, which only features those companies that represent best practice in terms of measurement, disclosure and leadership on environmental and climatic matters.

Working environment and employee satisfactionThe working environment in the Group is regarded as good. This is reflected in the employee satisfaction survey carried out in the autumn of 2015 in which around a third of all employees were involved. On a scale of 0 to 100, the employee satisfaction score in 2015 was 75.3. This is a somewhat weaker result than 2014, but represents a good result in view of the significant restructuring measures carried out at EVRY in 2015.

Key topics for the employee satisfaction survey are the working environment, employee motivation, commitment, manage-ment, reputation and engagement with EVRY’s corporate values. The results of the survey form the basis of specific measures for improvement in EVRY’s action plans. The com-pany attaches great importance to ensuring that all managers carry out appraisal interviews with all their employees, and that individual employees have annually updated plans for training and personal development. In 2016, simpler surveys will be carried out more frequently throughout the year.

Absence due to sickness and accidentsEVRY works in a systematic and long-term way on health, safety and the working environment. The primary focus of the company’s work in this area is on preventative measures to keep sick leave at the lowest possible level, to avoid risks to life and health, to minimise adverse effects on the environment and to prevent accidents and injuries.

Reported sick leave in the Group’s Nordic activities was 3.3% in 2015, respectively 3.4% in Norway and 3.0% in Sweden.

By way of comparison, sick leave in 2014 was 3.2% in Norway and 2.4% in Sweden. EVRY India in India reported sick leave of 1.4% in 2015, while Infopulse in Ukraine reported sick leave of 1.2%. The Group’s company in Latvia reported sick leave of 3.1%. The figures for sick leave are not directly comparable between countries since there are considerable difference in the rules that apply to sick leave.

EVRY works in a systematic and high-quality way on the physical and psycho-social dimensions of the working environment. The preventative health measures include early intervention for health problems, encouraging a healthy diet in EVRY’s canteens and organised sports activities. A program of work on fire prevention has been carried out, addressing both organisational and premis-es-related prevention measures. The risk of serious injuries is considered to be extremely low.

Inclusive working environment EVRY focuses on encouraging a working environment that is free of discrimination, whether on grounds of religion, skin colour, gender, sexual orientation, age, national or ethnic origin or functional disability.

The Norwegian part of the Group has entered into an agree-ment for “Inclusive Working Environment” to strengthen the focus on working environment programs, measures to reduce absence due to sickness, and diversity. The Group collaborates with Telenor Open Mind and routinely offers work experience placements for individuals with disabilities.

Gender equality and demographicsEVRY’s Nordic activities employ more than 1 500 women, making it one of the largest IT workplaces for women in the Nordic countries. Women make up 25% of the workforce in Norway and 26% in Sweden. Male and female employees have equal access to all types of roles. The distribution of genders is also reflected in management, where the proportions of women are 24% in Norway and 27% in Sweden. EVRY operates estab-lished personnel guidelines designed to ensure that there is no discrimination based on gender in matters such as salaries, promotion and recruitment. In the recruitment process, emphasis is placed on attracting highly qualified employees of both genders.

At the end of 2015, EVRY’s executive management team totalled eight persons. The proportion of women in the executive management team was 13%. The proportion of women on the Board of Directors of EVRY AS was 30%.

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The average salary earned by women was slightly lower than for men. This reflects the fact that the average age, and accordingly the seniority, of women is somewhat lower than among men. In relation to the Group’s Norwegian activities, parental leave was taken by 144 men and 58 women in 2015.• Employee gender distribution: 25% female and 75% male• The average salary for women is 94% that of men.

The Group’s employees have extensive experience, and their average age is 39. The average age of employees in Norway and Sweden is 46 and 43 respectively.

An overview of the remuneration of senior employees and officers of the Group is provided in note 6 to the consoli-dated accounts.

A separate report on EVRY’s corporate social responsibility is provided in the Annual Report on page 52.

Corporate governanceThe Board of EVRY is committed to sound corporate government practices.

EVRY applies the Norwegian Code of Practice for Corporate Governance as issued in English translation on 23 October 2012 and revised on 21 December 2012. The company produces a comprehensive annual report on corporate governance as part of its annual report, and the information is also available on www.evry.com. The company complies with the Norwegian Code of Practice for Corporate Governance, with no material deviations from the Code’s recommendations.

EVRY’s general corporate governance principles are based on maintaining open and reliable lines of communication, having a Board that is autonomous and independent of the Group management, having a clear division of responsibility between the Board and the executive management, and treating all shareholders equally. Further information on the company’s corporate bodies and their function and work can be found in the Corporate Governance report on page 60 of this annual report.

Risk exposure and risk managementEVRY’s overall objective in its risk management is to identify and quantify risks in order to provide a basis for decision making. In addition, risk management forms part of the process of value creation by ensuring that risk exposure is taken into account in the company’s decision processes as well as ensuring compliance with relevant legislation and regulations.

Risk management is an integrated part of the company’s management model and of its financial reporting. The key areas of risk that the business units consider to be material are monitored as part of the executive management’s routine supervision of the business areas and key financial metrics. In operational terms, the company’s objective is to integrate systematic risk management into the Group’s business processes, as well as supporting our customers in the risk management they carry out in relation to their value chains.

EVRY has structured and organised its approach to risk management through Enterprise Risk Management (ERM), which embeds risk management into businesses as a normal and routine part of activities at every level. ERM ensures a shared understanding of the concept of risk, defines a group-wide methodology for identifying, assessing, managing and monitoring risks, and also stipulates risk acceptance criteria and frames for risk ownership.

Risk management includes all categories of risks such as strategic risk, financial risk, reputational risk, operational risk, technical risk and compliance risk. EVRY is committed to making risk management an integrated part of its corporate culture and ensuring it supports all critical business pro-cesses.

EVRY bases its ERM process on ISO 31000:2009. Risk assessment is the overall process of identifying, analysing and evaluating risk. The results of risk assessment are managed by the organisational structure, with risk exposure ‘owned’ in accordance with the appropriate legal structure.

EVRY operates established risk reporting procedures for the appropriate management groups to report to executive management, the Board and the Audit Committee, and this involves reporting all important and critical risk exposure and ensuring that the ownership of responsibility for the exposure is identified. EVRY has established a risk management system in order to support the risk management process and ensure traceability and aggregation of various risk exposures. In addition to producing aggregated risk reporting, this system provides detailed information on vulnerabilities, identifying the risks affected and which measures the organisation has implemented to reduce unacceptable risk exposure. This helps line management to follow up on the status of measures that have been implemented, with ready access to information on prioritised tasks.

Market risk analysis Market risk is an expression of the risk of market prices and fundamental economic circumstances changing, such as

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interest rates and exchange rates. EVRY has established a strategy to manage its exposure to currency and interest rate risks arising from its international investments. The strategy is designed to ensure a high degree of predictability and the lowest possible volatility in annual currency gains/losses and interest costs.

EVRY is principally exposed to two types of currency risk: contractual purchases or sales denominated in foreign currency, and foreign investments and future cash flows from these investments. EVRY has both revenue and costs denominated in foreign currencies, and this creates some degree of natural hedging between financial transactions denominated in foreign currency. The Group has also estab-lished an arrangement for multicurrency bank accounts for the Group, and these accounts are used to reduce exposure to currency risk at the group level. The Group hedges future receipts and payments denominated in foreign currency where the amount is greater than the equivalent of NOK 50 million by entering into forward contracts that mature on the settlement day for the payment. At the end of 2015, the Group had borrowed SEK 1 038 million to hedge its investment in Sweden. Some of the Group’s debt financ-ing is denominated in euros, and the Group has entered into currency exchange agreements for its euro-denominated debt to eliminate its exposure to the euro. Cross-currency swaps have been entered into for EUR/NOK and EUR/SEK.

EVRY has established subsidiaries in India and Ukraine, and the revenue of these two companies is principally denominated in euros and US dollars. The Group’s currency risk principally relates to the Swedish krone, the Euro and the US dollar.

Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in the general level of interest rates. The Group’s exposure to interest rate risk relates principally to interest-bearing liabilities on floating interest rate terms. The Group’s borrowing agreement sets a requirement for 50% of its borrowings to be hedged at fixed rates until April 2017. Interest rate risk is managed by the use of financial hedging instruments such as interest rate swaps to manage the balance of fixed rate and floating interest rate borrowings.

Note 4 to the consolidated accounts provides more detailed information on interest rate hedging instruments, together with sensitivity analysis of exposure to currency and interest rate movements.

The company follows the political situation in Ukraine closely and takes the measures required to ensure the safety of its employees. The political situation has, however, had

only a limited effect on the financial results reported by the Ukrainian operations for 2015. The Ukrainian authorities have ceased to allow money to be taken out of the country, which has made it impossible to use the liquid assets held by the Ukrainian company freely in the Group.

Credit risk analysis The Group’s total exposure to credit risk at 31 December 2015 was NOK 1 912 million. This includes accounts receivable and other receivables. The Group’s exposure to counterparty risk is moderated by the fact that it has a large number of customers and its major customers are judged to be very strong companies. No significant provisions were made for losses on accounts receivable in 2015.

Liquidity risk analysis Liquidity risk arises if the cash flows generated by the Group are not sufficient to match its financial liabilities as they fall due. It is Group policy to operate at all times with core long-term financing arrangements with its banks, in order to make it possible to use bank facilities to finance investments. The Group restricts its use of short-term interest-bearing debt other than its credit facility in order to reduce its exposure to refinancing risk. Financing for significant corporate acquisi-tions is evaluated on a case by case basis.

The Group monitors its liquidity daily, and produces rolling liquidity forecasts on a regular basis in order to identify liquidity requirements in future periods.

The company entered into new financing arrangements on 17 March 2015 with a syndicate of banks with Wilmington Trust (London) Limited as agent and Bank of America Merrill Lynch International Limited, Credit Suisse AG, London Branch, DNB Bank ASA, Mizuho Bank Limited and Nordea Bank Norge ASA as arrangers. The new financing consists of various tranches in an aggregate frame of NOK 5.5 billion, with maturity profiles of six and seven years. The new financing ensures that EVRY achieves financial headroom at market rates with margins ranging between 4 and 5%, with the possibility of reduction given company performance. The covenants include requirements for cash interest cover ratio (EBITDA to net financial charges) and for leverage ratio (net interest bearing debt to EBITDA). The first measuring point is 31 March 2016.

Market outlookUnderstanding how digital solutions, new delivery models and network effects can be used to engage with customers and can change behaviours is central to the digital transfor-mation. Digitalisation and digital transformation are creating

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an increasing need for change and flexibility in both an organisational and technological sense. Companies that are able to create high-quality dialogue with their customers, to combine and process information, and to tailor their offer and react quickly and agilely can achieve significant competitive advantages. Similarly, public sector organisations that are able to adapt, modernise and improve the efficiency of the services they offer can make significant savings and so free up valuable resources.

Customer-centric innovation is as a result of the digital transformation, the very core of the company’s strategy for the years ahead. In 2015 the company took a range of steps to strengthen our platform for growth, and in 2016 multiple initiatives will be implemented intended to create fertile ground for progress and greater value for our customers.

Shareholder informationLyngen Bidco AS, a company indirectly controlled by private equity funds advised by Apax Partners LLP, was the largest shareholder in the company at 31 December 2015, with 88.0% of the total share capital. There were 604 shareholders at 31 December 2015. Further information is provided in note 18 to the consolidated accounts.

Allocation of the 2015 resultThe parent company recorded a loss for the year of NOK 193 million in 2015, which is allocated against other paid-in capital.

The company’s dividend policy is to distribute a dividend equivalent to 20-50% of the Group’s normalised profit. Extraordinary dividends may be distributed in particular circumstances, and will be evaluated on a case-by-case basis. In connection with the process whereby Lyngen Bidco AS acquired 88% of the share capital of EVRY AS, an Extraordinary General Meeting held on 23 March 2015 approved an extraordinary dividend of NOK 3.76 per share, equivalent to NOK 1 004 million, on the basis of the results for the 2013 financial year.

No dividend is proposed in respect of the 2015 financial year.The Group has prepared its accounts on the going concern assumption, and the Board confirms in accordance with Section 3-3 of the Norwegian Accounting Act that the going concern assumption is applicable. The Group’s reported results, its business strategy and its current budgets and financing provide the basis for the going concern assumption.

Salim NathooChairman of the Board

Ellen de Kreij Rohan Haldea Louise Sondergaard Göran Lindahl Francisco Menjibar

Jan Dahlström Ingrid Lund Eirik Bornø Ola Hugo Jordhøy Björn IvrothCEO

London, UK, 21 April 2016, Board of Directors of EVRY AS

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A N NUA L ACCOU NTS GROUP74

Annual accounts and notes

Annual Accounts Group 75

Consolidated statement of comprehensive income 75

Consolidated statement of financial position 76

Consolidated statement of cash flow 78

Consolidated statement of changes in equity 79

Notes Group 80

1 Accounting principles 80

2 Segment information 88

3 Management of capital structure and financial risk 90

4 Financial instruments 92

5 Use of estimates 95

6 Salaries and personnel costs 96

7 Pensions 98

8 Cost of goods sold and other operating costs 102

9 Financial items 103

10 Taxes 103

11 Earnings per share 105

12 Intangible assets 105

13 Property, plant and equipment 108

14 Interests in subsidiaries, associated companies and joint ventures 109

15 Accounts receivable 111

16 Other receivables 111

17 Bank deposits/guarantee liabilities 112

18 Share capital, shareholders etc. 112

19 Other current liabilities 113

20 Provisions 113

21 Leasing contracts 114

22 Classification of financial instruments and determination of fair value 116

23 Discontinued operations 118

24 Related parties 119

25 Disputes and other legal matters 119

26 Events after balance sheet date 119

Annual Accounts EVRY AS 120

Statement of comprehensive income 120

Statement of financial position 121

Statement of cash flow 122

Statement of changes in equity 123

Notes EVRY AS 124

1 Accounting principles 124

2 Salaries and personnel costs 124

3 Pensions 124

4 Income from investment in subsidiaries 125

5 Other operating costs 125

6 Financial items 126

7 Taxes 126

8 Guarantee liabilities 127

9 Shares in subsidiaries 128

10 Intra-group receivables and liabilities 128

11 Share capital, shareholders etc. 128

12 Financial instruments 129

13 Related parties 129

Auditor’s report 130

ANNUAL ACCOUNTS G ROUP 75

GROUP Consolidated statement of comprehensive income

1 January - 31 December

NOK million Note 2015 2014

Operating revenue 2 12 859.5 12 773.1

Cost of goods sold 8 4 877.9 3 625.4Salaries and personnel costs 6,7 7 097.6 6 448.7Loss from sale of tangible assets 13 98.1 1.9Depreciation and write-down of operating assets and in-house developed software 12,13,21 467.4 477.0Other operating costs 8 1 724.0 1 677.5Total operating costs 14 265.0 12 230.5

Operating profit/-loss before depreciation and write-down of intangible assets -1 405.4 542.6Depreciation of intangible assets 12 24.6 33.5Write-down of intangible assets 12 135.9 1 164.3Operating profit/-loss -1 566.0 -655.2

Financial income 9,14 19.8 38.7Financial expense 9,14 390.5 185.1Net foreign exchange gain/-loss 9 40.2 59.0Net financial items -330.4 -87.4

Profit/-loss before tax from continuing operations -1 896.4 -742.6

Taxes 10 -455.4 85.9Profit/-loss for the year from continuing operations -1 441.0 -828.5

Discontinued operations:Profit/-loss after tax for the year from discontinued operations 23 30.4 -42.3

Profit/-loss for the year -1 410.7 -870.8

Comprehensive incomeItems which will not be reclassified over profit and loss (after tax):Actuarial gains/-losses on defined benefit pension plans 18.7 -46.0

Items which may be reclassified over profit and loss in subsequent periods (after tax):Cash flow hedges 138.2 -40.5Currency translation differences 120.6 -6.2Total comprehensive income 11 277.6 -92.7

Total profit/-loss for the year -1 133.1 -963.4

Profit/-loss for the year is allocated as follows:Owners of the parent -1 410.7 -871.1 Non-controlling interests - 0.3

-1 410.7 -870.8

Total profit/-loss for the year is allocated as follows:Owners of the parent -1 133.1 -963.8 Non-controlling interests - 0.3

-1 133.1 -963.4

Earnings per shareEarnings per share (NOK) 11 -5.28 -3.26

A N NUA L ACCOU NTS GROUP76

GROUP Consolidated statement of financial position

As of 31 December

NOK million Note 31.12.2015 31.12.2014

Non-current assets Goodwill 12 5 665.0 5 446.0 Deferred tax assets 10 477.6 3.7 Other intangible assets 12 464.7 545.5 Total intangible assets 6 607.3 5 995.2

Leased premises 13 41.1 50.1 Machinery, equipment and fixtures 13,21 482.1 785.4 Total tangible assets 523.2 835.5

Investments in associated companies and joint ventures 14 54.0 67.5 Other shareholdings 1.6 1.5 Other financial assets 4 196.1 - Other non-current receivables 16 52.3 206.6 Total non-current financial assets 304.1 275.7 Total non-current assets 7 434.6 7 106.5

Current assets Inventories 50.2 39.2 Accounts receivable 15 1 673.5 1 966.3 Other current receivables 16 1 018.9 975.2 Bank deposits 3,17 900.2 615.6 Total current assets 3 642.9 3 596.3 Total assets 22 11 077.5 10 702.7

ANNUAL ACCOUNTS G ROUP 77

GROUP Consolidated statement of financial position

As of 31 December

NOK million Note 31.12.2015 31.12.2014

Equity Paid-in capital Share capital 18 467.8 467.8 Own shares 18 - -0.5 Other paid-in capital 1 393.5 3 369.4 Total paid-in capital 1 861.3 3 836.7

Other equity 283.9 440.4 Total other equity 283.9 440.4

Non-controlling interests 0.3 0.3 Total equity and non-controlling interests 2 145.6 4 277.4

Liabilities Non-current interest bearing liabilities 3,4 4 779.6 3 181.3 Non-current non-interest bearing liabilities 4 90.1 80.6 Pension liabilities 7 211.6 242.1 Deferred tax 10 - 23.5 Other provisions for liabilities 20 316.1 8.2 Total non-current liabilities 5 397.4 3 535.7

Accounts payable 577.3 885.1 Tax payable 12 94.2 55.7 Deductions and duties payable 1 053.3 1 187.1 Other current liabilities 2,21,22,23 1 809.8 761.7 Total current liabilities 3 534.5 2 889.6 Total liabilities 24 8 931.9 6 425.3 Total equity and liabilities 11 077.5 10 702.7

Salim NathooChairman of the Board

Ellen de Kreij Rohan Haldea Louise Sondergaard Göran Lindahl Francisco Menjibar

Jan Dahlström Ingrid Lund Eirik Bornø Ola Hugo Jordhøy Björn IvrothCEO

London, UK, 21 April 2016, Board of Directors of EVRY AS

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GROUP Consolidated statement of cash flow

1 January - 31 December

NOK million Note 2015 2014

Cash from/to operations: Profit/-loss before tax -1 866.1 -782.1 Gain/-loss on sale of tangible assets 98.1 1.9 Tax paid in the period -115.3 -63.0 Depreciation/write-downs 12,13 627.9 1 684.4 Net financial Items 9 330.4 73.1 Paid interests -248.2 -144.1 Difference between pension cost and payments -7.9 -1.9 Change in working capital 1 398.3 204.5 Net cash flow from operations 217.3 972.8

Cash from/to investments: Investment in tangible operating assets 13 -296.6 -397.7 Investment in in-house developed software 12 -146.7 -93.0 Sale of fixed operating assets (sales proceeds) 33.7 75.2 Investment in group companies 3.6 -48.6 Net cash flow from investments -406.0 -464.0

Cash from/to financing: New borrowing (short and long-term) 4 681.5 400.0 Borrowings repaid -3 233.7 -754.2 Dividends paid -1 003.6 -106.8 Purchase/sale of own shares 18 4.8 - Net cash flow from financing 449.0 -461.0

Net change in liquid assets over the year 260.3 47.8 Currency movement in liquid assets 24.4 9.8 Bank deposits at 1 January 615.6 558.0 Bank deposits at 31 December 900.2 615.6

Whereof restricted cash 31 December - -

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GROUP Consolidated statement of changes in equity

1 January - 31 December

Owners of the parent

NOK million Share capitalOwn

sharesPaid-in

other equityFair value

reservesOther equity

Translation differences Total

Non-controlling interets

Total equity

Equity at 1 January 2014 467.8 -0.7 3 368.7 -57.1 1 438.7 128.8 5 346.4 - 5 346.4

Purchase of own shares 0.1 0.7 0.5 1.3 - 1.3Dividend -106.8 -106.8 - -106.8Comprehensive income -40.5 -46.0 -6.2 -92.7 - -92.7Profit/-loss for the year 2014 -871.1 -871.1 0.3 -870.8Equity at 31 December 2014 467.8 -0.5 3 369.4 -97.6 415.3 122.6 4 277.1 0.3 4 277.4

Purchase of own shares 0.5 4.3 - 4.8 - 4.8Dividend -1 003.6 -1 003.6 - -1 003.6Comprehensive income 138.2 18.7 120.6 277.6 - 277.6Profit/-loss for the year 2015 -1 410.7 -1 410.7 - -1 410.7Allocation of equity -1 980.2 1 980.2 - - - Equity at 31 December 2015 467.8 - 1 393.5 40.6 - 243.2 2 145.2 0.3 2 145.6

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ACCOUNTING PRINCIPLES

1. General informationEVRY AS is a Norwegian limited company, and is subject to the Limited Liability Companies Act. The company’s registered office is at Snarøyveien 30A, NO- 1331 Fornebu. The company was converted from a public limited company to a limited company with effect from 22 February 2016. The company also changed its name from EVRY ASA to EVRY AS.

The main activities of the parent company EVRY AS and its subsidiaries (the ‘Group’) are the sale of software, IT solutions and consulting services, as well as the centralised and decentralised operation of computer systems. In addition, the Group offers outsourcing services and services related to data communication, data security and electronic publishing.

The consolidated accounts have been approved for issuance by the Board of Directors on 21 April 2016 and is subject to approval by the Annual General Meeting on 3 May 2016.

2. Significant accounting policies2.1 Basis of presentation In accordance with the Norwegian Accounting Act, the consolidated Annual Accounts of EVRY AS have been prepared in accordance with the International Financial Reporting Standards (IFRS) as published by IASB and approved by the EU. The accounts have been prepared on a historical cost basis with the exception of financial derivatives and share based invest-ments, which are measured at fair value.

The Group’s business is, for internal reporting requirements, divided into three strategic segments, each of which is sepa-rately organised and managed. Financial information about the segments and geographic areas of activity is presented in note 2: Segment information.

In preparing the accounts for the 2015 financial year, the Group has implemented all the new and revised standards and in-terpretations issued by IASB and approved by the EU that are relevant to its activities and that were in force for the account-ing year commencing on 1 January 2015. A review of the standards and interpretations that had not come into force for the 2015 financial year but that may be relevant for the Group is provided at the end of the statement of accounting principles.

The accounting principles applied are consistent with the principles applied in the previous approved consolidated accounts. In 2015, the Group implemented the following new standards and interpretations issued by the IASB and approved by the EU that are relevant for its business activities and that came into force for the accounting year that commenced on 1 January 2015- Annual Improvements to IFRSs (2011 – 2013) - Amendment to IFRS 3: Scope exceptions for joint ventures- Annual Improvements to IFRSs (2011 – 2013) - Amendment to IFRS 13: Scope paragraph 52 (portfolio exception)

The implementation of the standards has not caused any material changes to the consolidated accounts for 2015.

The Group did not elect early adoption of any standards or interpretations for the accounting year 2015.

The SAP operations of EVRY Denmark A/S was decided to undergo controlled closure in 2014. Because of this, the oper-ating result for the company has been stated separately in accordance with IFRS 5 and is shown as a separate line entry in the income statement: “Profit after tax from discontinued operations”. The comparable figures in the income statement are restated accordingly. See note 23 to the consolidated accounts for further information.

2.2 Basis for consolidationThe consolidated accounts include the parent company EVRY AS and its subsidiaries as of 31 December 2015. Control is achieved when the Group is exposed or has rights, to variable returns from its involvement with the company and has the ability to affect those returns through its power over the company. Specifically, the Group controls a company if, and only if, the Group has:a) Power over the company (i.e., existing rights that give it the current ability to direct the relevant activities of the investee) b) Exposure, or rights, to variable returns from its involvement with the companyc) The ability to use its power over the company to affect its returns

Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:a) The contractual arrangement with the other vote holders of the companyb) Rights arising from other contractual arrangementsc) The Group’s voting rights and potential voting rights

GROUP Notes to Financial Accounts

NOTE 1

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Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. If the Group ceases to have a controlling influence over a subsidiary, the subsidiary’s assets, liabilities, non-controlling ownership interests and any accrued translation differences are reversed. The remaining investment at the time that the Group ceased to have a controlling influence is measured at fair value, and any gain or loss is recognised in the accounts.

The Group’s comprehensive income is attributed to the parent company’s owners and to the non-controlling interests, even where this causes non-controlling interests to be negative. At the time of acquisition, non-controlling ownership interests are calculated either as their portion of identified assets or to fair value. The choice of method is made at the date of acquisition for each business combination. The share of profits is calculated on the basis of the subsidiary’s post-tax profit, as included in the consolidated accounts after internal netting.

All intra-group transactions and balances, purchases and sales between companies in the Group and unrealised internal gains are netted off in the accounts.

2.3 Summary of significant accounting policiesThe material accounting principles used to prepare the annual accounts of EVRY AS are as follows:

Presentation and functional currencyThe Group presents its accounts in Norwegian kroner (NOK). This is also EVRY AS’s functional currency. The figures pre-sented in the annual accounts are in millions of Norwegian kroner unless otherwise stated. Rounding differences may mean that amounts and percentages reported do not necessarily add up to the total shown.

Business combination and goodwillSubsidiaries are accounted for in accordance with the acquisition method, whereby the acquisition cost of the shares is off-set against the subsidiary’s equity at acquisition date. Any excess value resulting from this treatment at the time of purchase is allocated to identifiable assets and is depreciated over their expected life. Excess value that cannot be attributed to iden-tifiable assets and liabilities in subsidiaries at the date of acquisition is recognised as goodwill in the statement of financial position. Goodwill acquired in a business combination represents a payment made by the acquirer in anticipation of future economic benefits from assets that are not capable of being individually identified and separately recognised.

Goodwill that arises as a result of a business combination is not amortised. Goodwill does not generate cash flows inde-pendently of other assets or groups of assets, and is assigned to the cash generating units that are expected to benefit from the synergy effects of the business combination that gave rise to the goodwill. Upon disposal of a business, the businesses proportion of goodwill based on fair value is taken into account in calculating the gain or loss on disposal.

The Group carries out goodwill impairment tests as required if there are any indications that suggest this is necessary, and in any case at least at the end of each year. If there are such indications, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Recoverable amount is defined as the higher of value in use and net sales value. Value in use is calculated as net present value of future cash flow from continuing use, including cash flow arising from eventual disposal. A calculated WACC is applied as the discount rate used to calculate present value. Net sales value is calculated as the amount that the company would expect to obtain from the disposal of an asset in an arm’s length transaction between knowledgeable, willing parties, after deducting the estimated costs of disposal.

The smallest unit of a particular asset which can be separately assessed as a valuation unit for the purpose of determining whether there has been a fall in value is determined by the lowest level at which it is possible to identify incoming cash flow independent of cash flow from other groupings of the same class of asset. In most cases, the Group’s business areas represent the smallest valuation unit for this purpose.

An asset is written down to the recoverable amount if the recoverable amount is less than the carrying value before write-down. The write-down is applied first to any goodwill and thereafter to the book value of the unit’s other assets on a pro-portional basis relative to the book value of the unit’s specific assets. Impairment losses are charged to profit and loss in the period the impairment loss is identified, and reduce the carrying value of the asset by an equivalent amount. Impairment of goodwill, may not subsequently be reversed, even though the reason for the impairment loss no longer applies.

Investments in associated companies and joint ventureAn associate company is a company over whose financial and operating policy decisions the Group has significant influence. Significant influence is normally deemed to exist where one entity has an ownership interest in another of between 20% and 50%.

A joint venture is a joint arrangement in which the parties who have joint control over the arrangement have rights to the net assets of the arrangement. ‘Joint control’ is the contractually agreed sharing of control over a joint arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

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The Group’s investments in associate companies and joint ventures are recognised in the Group’s accounts using the equity method. When the equity method is used, the investment in the associate company or joint venture is recorded at cost, and the carrying amount is increased or decreased to recognise the Group’s share of the profit or loss after the date of acquisition. The Group’s share of the profit or loss of the company in which it has invested is recognised in the consolidated income statement. Distributions received by the Group reduce the carrying amount of the investment. Goodwill is includ-ed in the cost price of investments in associate companies or joint ventures.

Transactions in foreign currencyTransactions in foreign currencies are translated at the exchange rate at the date of the transaction. Currency gains/losses that arise as a result of changes in the exchange rate between the date of the transaction and the payment date are recognised to profit and loss.

Assets and liabilities of foreign subsidiaries that use a functional currency other than Norwegian kroner (NOK) are translated on the accounting period date at the exchange rate on the accounting period date, while profit and loss items are translated at the daily average exchange rate during the accounting period.

Upon disposal of a foreign subsidiary, the cumulative translation difference in respect of the subsidiary is recognised to profit and loss. If part of a receivable/liability that is treated as part of net investment in a foreign unit is realised, a proportionate share of the cumulative translation difference is recognised to profit and loss.

Recognition of revenue and costsWhere operating services are provided through volume-based contracts, revenue is recognised on the basis of the actual use of services by the customer, or on a linear basis over the period of the contract for term-based contracts. Sales of dialogue services are recognised as revenue on the basis of actual customer usage. Revenue from a transition project that is an integral part of a subsequent operating services contract is recognised on a linear basis over the period of the operating services contract. Revenue from a transition project that is not related to an operating services contract is recognised on the basis of the degree of completion. The degree of completion is calculated on the basis of the number of hours of work delivered to date divided by the total number of hours estimated for the delivery in total.

Revenue from service and maintenance agreements, as well as the expenses involved in carrying out such agreements, is recognised in the accounts over the period of the contract.

Sales of goods are recognised as revenue at the time of delivery, i.e. when control passes to the purchaser. Goods include both hardware and software.

Sales of licences and rights to use software are recognised at the date the contract is signed since this corresponds to the time at which the software is made available to and can be used by the customer. Revenue from sales of software is separated from maintenance revenue on the basis of a separate pricing model and contractual structure. Revenue from software developed specifically for customers is recognised over the development period in line with the degree of completion. The degree of completion is calculated on the basis of the number of hours of work delivered to date divided by the total number of hours estimated for the delivery in total.

Revenue from consulting services is recognised as the services are provided. Sales of services on a fixed fee basis are recognised in line with the degree of completion. The degree of completion is calculated on the basis of the number of hours of work delivered to date divided by the total number of hours estimated for the delivery in total.

Cost of goods sold comprises directly allocated costs related to the delivery of goods, including maintenance and operational leasing of hardware and software, as well as the cost of consulting services that are directly related to the turnover of the goods. The costs of employing external consultants that are used for the Group’s normal operations and that are re-charged to customers are classified as cost of goods sold.

Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective asset. Borrowing costs consist of interest and loan set-up fees that are incurred in connection with the borrowing of funds.

Borrowing costs that cannot be directly attributed to the acquisition, construction or production of an asset are charged to profit and loss as interest expenses in the current period.

TaxationTax payable in the financial statement is measured at the amount that the company expects to be received or paid to the tax authorities. With the exception of associated companies where the exemption method is applied, the value of deferred tax liabilities/deferred tax assets in the statement of financial position is calculated on the basis of all differences between

ANNUAL ACCOUNTS G ROUP 83

accounting and taxation values of assets and liabilities (liability method). The amount provided includes all types of differ-ence, and is calculated without being discounted to present value. Deferred tax liabilities and deferred tax assets are calculated based on approved tax rates at the time of reporting and netted to the extent that temporary timing differences can be reversed under the same tax system. The tax charge is made up of tax payable and changes in deferred tax liabilities/deferred tax assets.

Deferred tax asset is capitalised in the statement of financial position to the extent that it is considered likely that the company in question will have sufficient taxable profit in subsequent periods to make use of the deferred tax asset. At each year end, the Group carries out a review of deferred tax asset not capitalised to the statement of financial position and their accounting val-ue. Deferred tax asset not previously capitalised to the statement of financial position is capitalised to the extent that it appears likely from the review that the company in question will be able to make use of the deferred tax asset. Similarly, companies will reduce the capitalised value of deferred tax asset to the extent that they are no longer able to use the tax asset in question.

Tax payable and deferred tax liabilities/deferred tax assets are applied directly to equity to the extent that they relate to items that are applied directly to equity. Items that are reported as “comprehensive income” are presented on a post-tax basis in the statement of comprehensive income.

Earnings per share Earnings per share is calculated by dividing the parent company shareholders’ share of the profit/loss for the year by the weighted average number of ordinary shares outstanding over the course of the period. When calculating diluted earnings per share, the average number of shares outstanding is adjusted for all share options that have a potential dilutive effect. Options that have a dilutive effect are treated as shares from the date they are issued.

Classification of current and non-current itemsThe Group presents assets and liabilities in statement of financial position based on current/non-current classification.

An asset is classified as current when it is:a) Expected to be realised or intended to be sold or consumed in normal operating cycleb) Held primarily for the purpose of tradingc) Expected to be realised within twelve months after the reporting period, ord) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months

after the reporting period

All other assets are classified as non-current.

A liability is current when:a) It is expected to be settled in normal operating cycleb) It is held primarily for the purpose of tradingc) It is due to be settled within twelve months after the reporting period, ord) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Group classifies all other liabilities as non-current.

Intangible assets with limited lifeThe Group’s intangible assets with limited life largely consist of capitalised costs related to software developed in-house.

Expenses relating to development are capitalised if the following criteria are met in full:

- the product or process is clearly defined and its cost elements can be identified and measured reliably- the technical solution for the product has been demonstrated- the product or process will be sold or used in the company’s operations- the asset will generate future economic benefit; and- sufficient technical, financial and other resources for completing the project are present

When all the above criteria are met, the costs relating to development are capitalised. Costs that have been charged as expenses in previous accounting periods are not capitalised. The evaluation of future commercial benefit is based on the expected license revenue and/or reduction in operating costs that will be achieved by carrying out the project. When cal-culating the profitability of a project, the estimated future cash flows associated with the project are discounted to present value using a rate of return adjusted for the risk associated with the project in question.

Intangible assets with limited life are amortised over their useful life. Capitalised development costs are normally de-preciated based on expected cash flow from the individual project. The depreciation period used is between 1-4 years. Investment in other intangible assets is normally depreciated on a linear basis. The length of useful life remaining and the

A N NUA L ACCOU NTS GROUP84

method of depreciation are subject to annual review that takes into account the commercial reality of the intangible asset in question. The Group does not have any intangible assets with unlimited life.

At each reporting date the Group evaluates if there are identified indications that fixed assets or intangible assets may be impaired. If there are such indications, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Impairment losses may subsequently be reversed to the extent that the reason for the impairment no longer applies.

Tangible assetsTangible operating assets are carried in the statement of financial position at historic purchase price less accumulated ordinary depreciation and write-down. When tangible operational assets cease to be used, the historic purchase price and accumulated depreciation are removed from the accounts, and any gain or loss this causes is recognised to profit and loss. Depreciation is applied on a straight-line basis, after allowance for disposal value, over the following time periods:

- Leasehold improvements 5-10 years- Machinery/equipment/fixtures 3–7 years- Vehicles 5 years- IT equipment 3–5 years

The economic life and depreciation method used are reviewed regularly to ensure that the method and depreciation period reflect the expected useful life of the assets in question. This also applies to disposal value. The depreciation period for leasehold improvements will at a maximum be the remaining lease period.

LeasingLeasing of assets where the lessor retains the major part of risk and control are classified as operational leases. Other leasing contracts are treated as financial leasing.

Operational leasingThe leasing costs of operational leases are allocated on a linear basis over the period of the lease, and are classified as cost of goods sold or other operating costs in the profit and loss account.

Financial leasingFinancial leasing contracts are capitalised as assets and liabilities in the statement of financial position in an amount equivalent to the operating asset’s fair value at the time the leasing contract was entered into or, if lower, the net discounted value of the future minimum payments under the terms of the lease contract. The liability to the lessor is included in the statement of financial position as a financial lease liability. Lease payments are recognised in the accounts as interest expense and a reduction in the lease liability. Leased assets are depreciated over the expected useful life in accordance with the depreciation plan for owned assets. If it is not likely that the Group will take over the asset upon the expiry of the leasing contract, the asset is depreciated over the shorter of the life of the leasing contract and the depreciation period applied for equivalent assets owned by the Group.

Financial derivativesThe Group’s financial derivatives consist almost entirely of hedging derivatives. All purchases and sales of financial instru-ments are recognised on the transaction date. Changes in fair value for derivatives that meet the requirements for cash flow hedging are reported in the statement of comprehensive income as “comprehensive income”. Derivatives that are not classified as hedging instruments are classified as available for sale and valued at fair value. Changes in the fair value of such derivatives are recognised as financial income/financial expense.

HedgingThe Group has established a strategy to hedge the currency and interest rate risks related to its international investments. The strategy is designed to ensure a high degree of predictability in currency gains/losses and interest costs. Derivative contracts are recognised as hedging instruments if they satisfy the following criteria:a) hedging is expected to be highly effective in achieving offsetting changes in fair value or cash flows attributable to the

hedged risk, with hedge effectiveness in the range 80–125%,b) the effectiveness of the hedging can be reliably measured,c) there is adequate documentation on entry into the hedging to show that the hedging is highly effectived) hedging is reviewed regularly and has proved effective throughout the reporting periods for which it was intended

The Group has hedged (cash flow hedging) part of its net investment in Swedish kroner. Changes in the value of currency derivatives classified as hedging instruments are netted against financial income/financial expense in the consolidated accounts and form part of comprehensive income.

ANNUAL ACCOUNTS G ROUP 85

In addition, the Group hedges part of its exposure to the electrical power market by purchasing forward contracts. The ef-ficiency of this hedging in terms of the price achieved is measured by comparing changes in the fair value of the derivative (the financial contract) against the physical supply of electricity (price).

The hedging instrument in cash flow hedges is recognised at fair value at the date of the financial position statement. If the hedging is evaluated as effective, the change in value is recognised as part of “comprehensive income”. If the hedging is evaluated as not effective, the change in value is recognised as financial income/expense in the profit and loss account. Hedging instruments are classified as non-interest bearing liabilities or receivables in the statement of financial position.

Inventories Inventories are valued at the lower of purchase price and net realisable value. Net realisable value is defined as the expect-ed sale price under normal commercial conditions with a deduction for sales costs. Purchase price is determined on the basis of average cost price.

Accounts receivableAccounts receivable are recognised in the statement of financial position at nominal value after a deduction for possible losses. A provision for estimated losses is included in the presentation of comprehensive income when a loss causing event takes place and there is objective evidence that the value of the asset is impaired.

EquityThe nominal value of holdings of own shares is reported in the statement of financial position as a deduction to share capital. The purchase price in excess of nominal value is charged to share premium. Gains or losses on transactions in own shares are applied directly to equity. If own shares are sold at a price in excess of cost price, the surplus is recognised as other paid-in equity. Realised losses related to sales of own shares are recognised against retained earnings.

Transaction costs in relation to equity transactions are charged to equity after deducting tax.

The fair value reserve includes cumulative net changes in fair value of financial instruments until the investment is disposed of.

LiabilitiesOn initial recognition, liabilities are stated at fair value after deducting transaction costs, but thereafter liabilities are stated at amortised cost using the effective interest method. In addition, if fair value hedging is used, the liability that is hedged it also adjusted for gains and losses that can be attributed to the risk that has been hedged. When the liability is repaid, in whole or part, the difference between the book value of the liability and the amount repaid is recognised in the profit and loss account.

Pension liabilities Liability in respect of contractual pension arrangements in the Group is valued as the present value of the future pension benefits for which entitlement has been earned at the date of the statement of financial position, and is calculated on the basis of assumptions about discount rates, the investment return on pension assets and expected growth in earnings and pensions. Pension calculations use the K2013 table for mortality risk. The risk table for disability, IR02, corresponds with the estimated risk of disability in the Group. Pension assets are valued at fair value on the accounting period date. In cases where there is not sufficient information available from the pension scheme’s administrator on the company’s assets and liabilities in the scheme, the scheme is treated as a defined contribution scheme. Costs incurred in relation to the Group’s pension arrangements are reported as salary costs in the accounts.

The starting point for calculating pension costs in respect of the Group pension schemes is linear application of pension entitlement earned against the likely accumulated pension liability at the time the pension is first drawn.

The cost of pensions is calculated on the basis of the discounted pension entitlement earned at the beginning and end of the year and the pension rights accrued during the year, less the return on the assets provided to fund pensions. Significant chang-es to the pension schemes, including scheme closures and changes that cause the issue of paid-up policies, are recognised in the accounts in the accounting period when such change takes place. The effect of any changes in the pension scheme that leads to the issue of fully paid-up policies is recognised in the period the change is made. The effect of other changes in the pension scheme is amortised over the expected average remaining service period. The effect of any changes in estimates, changes in assumptions and calculation are accounted for as “comprehensive income” in the period that they occurs.

The Group has established a compensation scheme for employees in connection with the closure of a defined benefit pension scheme. The size of the compensation and the profile for its accrual are calculated on the basis of a standard set of calculation parameters at the time of the change to the pension arrangements. The accrual formula and profile for the com-pensation scheme are used as the basis to make provisions in the accounts so that the total compensation earned to date by employees at any time is provided for as a liability in the consolidated statement of financial position.

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Employees in the Group’s Norwegian companies are members of an early retirement scheme (AFP), which is a multi-com-pany defined benefit scheme, and is financed by premium payments determined as a percentage of salary. There is no reliable measurement and allocation of liabilities and asset between the companies that participate in the scheme. The scheme is therefore treated for accounting purposes as a defined contribution pension scheme and the premiums paid are recognised as costs through profit and loss.

Provisions A provision is recognised in the accounts only when the company is subject to a liability that is a consequence of an event that has already happened and where it is likely (i.e. more likely than not) that in order to reduce or discharge the liability the company will have to apply financially measurable resources, and the liability can be reasonably estimated. Provisions are evaluated at the end of each accounting period and adjusted to reflect the available information about the provision. Where the information available is insufficient, a best estimate is used. If the time period to the date at which the liability may lead to payment has a material effect on the calculation, the provision will represent the discounted present value of the future liability. Increases in liability caused solely by the lapse of time are reported as an interest expense.

Provisions for restructuring costs only include direct expenses linked to the restructuring which are both necessary for the implementation of the restructuring and which do not relate to the continuing ordinary activities of the company. Such pro-visions are recognised in the accounts when the company has a detailed plan for the restructuring in question that identifies which business areas will be affected, the locations affected, the functions and estimated number of employees due to receive termination payments, the costs that will be incurred and a time plan for implementation. There must be a real ex-pectation by the parties affected that the company will implement the restructuring. This means either that implementation of the restructuring program has commenced or that the main elements have been disclosed to the affected parties.

Contingent assets and liabilitiesA contingent asset is defined as a possible asset, that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the entity. Contingent assets are not included in the annual accounts, but information is provided if there is a reasonable certainty that the benefit in question will accrue to the Group.

Contingent liabilities comprise:- a possible obligation arising as a result of past events where the obligation depends on some uncertain future event- a present obligation that is not recognised in the accounts since it is not probable that the obligation will result in a

payment being made- liabilities that cannot be measured reliably Contingent liabilities are not recognised in the accounts with the exception of contingent liabilities acquired as part of the purchase of a business. Continent liabilities acquired as part of the purchase of a business are recognised in the accounts at fair value even if the liability is not likely to crystallise.

Cash flow statementThe cash flow statement is presented using the indirect method. The Group’s activities are divided into operational, financing and investment activities. Investment in new business or sale of business is classified as cash from/to investments, in the cash flow statement, and amounts to the purchase price/sales price less transferred cash and cash deposits at the transaction date.

The cash flow statement includes businesses disposed of up to the date of disposal.

Discontinued operationsIf a decision is taken to discontinue or to sell a major part of the Group’s operations or if control/significant influence over a compa-ny is lost, the operations in question are presented as ‘discontinued operations’ in a separate line entry on the income statement and in the statement of financial position. ‘Major’ means a separate segment or a significant asset. This means all other figures pre-sented are exclusive of ‘discontinued operations’. The comparison figures in the income statement are correspondingly restated. The comparison figures in the statement of financial position and in the statement of cash flow are not restated.

3. Approved changes to IFRS and IFRIC that came into force after the date of the accountsThe following paragraphs provide an overview of changes to IFRS/IAS standards that are relevant to the Group’s activities but have not yet come into effect. The Group anticipates that the implementation of the changes listed below will not have any material effect on the consolidated accounts when the changes are made.

IFRS 9 - Financial InstrumentsIFRS 9 Financial Instruments will eventually replace IAS 39 Financial Instruments: Recognition and Measurement. In order to expedite the replacement of IAS 39, the IASB divided the project into phases: classification and measurement, hedge

ANNUAL ACCOUNTS G ROUP 87

accounting and impairment. New principles for impairment were published in July 2014 and the standard is now complet-ed. The parts of IAS 39 that have not been amended as part of this project has been transferred into IFRS 9. The EU has still not yet approved the standard, and its implementation has been postponed until 1 January 2018. Early application will be permitted if the EU approves the standard. The Group expects to apply IFRS 9 with effect from 1 January 2018.

IFRS 15 Revenue from Contracts with CustomersThe IASB and the FASB have issued their joint revenue recognition standard, IFRS 15 Revenue from Contracts with Customers. The standard replaces existing IFRS and US GAAP revenue requirements. The core principle of IFRS 15 is that revenue is recognised to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard applies to all revenue contracts and provides a model for the recognition and measurement of sales of some non-financial assets (e.g., disposals of property, plant and equipment). The EU has still not yet approved the standard, but it is expected to enter into effect on 1 January 2018. The Group expects to apply IFRS 15 with effect from 1 January 2018. The Group does not expect the implementation of IFRS 15 will have a significant impact on the financial statements, but may for some projects affect the timing of revenue recognition.

IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: Sale or contribu-tion of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)The amendments address an inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognised when a transaction involves a business (whether it is housed in a subsid-iary or not). A partial gain or loss is recognised when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. The EU has still not yet approved the standard, but it is expected to enter into effect on 1 January 2016.

IFRS 11 Joint Arrangements: Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11)IFRS 11 addresses the accounting for interests in joint ventures and joint operations. The amendments add new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business. The amendments specify the appropriate accounting treatment for such acquisitions. The EU has still not yet approved the standard, but it is expect-ed to enter into effect on 1 January 2016.

IAS 1 Presentation of Financial Statements: Disclosure Initiative (Amendments to IAS 1)In December 2014, the IASB issued amendments to IAS 1 Presentation of Financial Statements as part of its Disclosure Initiative. The amendments to IAS 1 further encourage companies to apply professional judgment in determining what information to disclose and how to structure it in their financial statements. The EU has still not yet approved the standard, but it is expected to enter into effect on 1 January 2016.

IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets: Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)IAS 16 and IAS 38 both establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset. The IASB has clarified that the use of revenue-based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset. The IASB also clarified that revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits embodied in an intangible asset. This presumption, however, can be rebutted in certain limited circumstances.

IAS 27 Separate Financial Statements: Equity Method in Separate Financial Statements (Amendments to IAS 27)The objective of these amendments is to restore the option (which was removed in 2003) to use the equity method to account for investments in subsidiaries, joint ventures and associates in an entity’s separate financial statements. Therefore, an entity must account for these investments either:- At cost- In accordance with IFRS 9 (or IAS 39), or- Using the equity method The entity must apply the same accounting for each category of investments.

As a consequence IFRS 1 was amended to allow a first-time adopter accounting for investments in the separate financial statements using the equity method, to apply the IFRS 1 exemption for past business combinations to the acquisition of the investment. The EU has still not yet approved the standard, but it is expected to enter into effect on 1 January 2016.

A N NUA L ACCOU NTS GROUP88

SEGMENT INFORMATION

The Group’s activities were divided into three segments for the purpose of reporting in 2015. The allocation of activities to segments is based on the main markets served by the Group, and corresponds with the structures used for internal reporting to the executive management, which is the chief operating decision makers in the Group. The segment structure is unchanged from the 2014 reporting.

The EVRY Financial Services segment offers a broad portfolio of solutions and services, and is a complete industry vertical with responsibility for all the company’s deliveries to bank and finance customers. The solutions portfolio includes solutions for all core banking services, whether this relates to interfaces with end-customers or solutions to support a bank’s internal processes and employees. The portfolio is module-based, and includes banking services, transactions systems, payment solutions and card services. The portfolio also includes a unique value chain of card services that are delivered to banks in the Nordic countries and in the United Kingdom.

The EVRY Sweden segment offers everything from strategic advice and consulting services through to solutions and IT operating services. EVRY Sweden has a significant portfolio of industry vertical solutions that combine industry-specific insight and business understanding with technological expertise. EVRY Sweden also delivers services based on strong specialist expertise that are independent of geographic location and sector, for example ERP solutions, mobility, cloud-based solutions and Business Intelligence. EVRY Sweden also has its own operating services organisation, which focuses on medium-sized businesses and entities in the private and public sectors.

The EVRY Norway segment offers consulting, infrastructure and operating services. EVRY Norway has a long history with leading customers in the Norwegian public and private sectors, and holds strong positions in a number of industry verticals where it combines industry insight and business understanding with technological expertise. Customer deliveries cover a broad range of consulting and solutions services, as well as IT operating services. EVRY Norway has a significant position in the local government and healthcare sectors, and is currently strengthening its position in other verticals including retail, oil & gas and insurance. Through its extensive activities, EVRY Norway has in-depth technical expertise in specialist services that are independent of geographic location and sector. This includes growth areas such as mobility, cloud-based solutions and Business Intelligence. The segment also includes the Group’s Global Sourcing activities for reporting purposes. The Group’s other activities are shown in the presentation below as corporate costs/eliminations. These activities princi-pally relate to financing and central group functions that are not allocated to the segments. Non-recurring items are not distributed to the segments in accordance with the management reporting structure in the Group, and are reported as a separate line in the presentation below.

Transactions between the business areas are based on market terms and conditions and are reported as corporate costs/eliminations. The rental of software and other IT equipment is based on the cost from an external supplier plus a margin. The purchase and sale of consulting services between the segments is charged at an agreed price equivalent to the price achieved by the best customer. The operating profit (EBITA) reported for each segment includes revenue and costs related to transactions with other segments of the Group. The Group’s chief operating decision makers (executive management) follow up the operating profit (EBITA) of each segment on a regularly basis and use this information to analyse the various segments’ operational performance and to make decisions on resource allocation. The performance of each segment is evaluated on the basis of revenue growth and EBITA, and the measurement of revenue growth and EBITA is consistent with the consolidated revenue and EBITA figures reported for the Group as a whole. Management also monitors each segment in terms of other key figures such as EBITDA, operational investment spending, working capital and the customer credit - time.

With effect from 1 December 2015, the company has entered into a long-term 10-year agreement with IBM to strengthen its infrastructure solutions. The company will continue to lead the development of value-adding infrastructure services for its customers and will combine this with IBM’s innovative cloud technology and global scale. The agreement means that the company will partner with IBM for the operation of its basic infrastructure platforms, and it covers all platforms such as mainframe, Unix and Wintel. EVRY will continue to take full responsibility for customers and deliveries and will also continue to manage its data centres, while IBM will operate the technology. The estimated contract value is USD 1 billion over the contract period, a result of the IBM agreement, looking to 2016, EVRY expects to reduce its cost base significantly within the outsourcing area. EVRY also expects to increase its competitiveness in the market and thus increased revenues.

The company will invest significantly in cloud-based infrastructure solutions over the next three years in order to offer its customers scalable, market-leading solutions on a global platform. Significant provisions have therefore been made on the Group’s balance sheet as of 31 December 2015 in relation to the agreed transitions and customer transformations needed to convert to IBM’s platform technology, cf. note 20. In total approximately 200 customers are covered by the conversion to IBM’s platform technology. On 1 December 2015, 429 employees from EVRY’s Nordic organisation were transferred to IBM.

In connection with the agreement EVRY has entered into with IBM, the company has carried out an assessment of balance sheet items and has in connection with this written down the company’s investment in its Future Proof program by NOK 135.5 million as the company will in future be using IBM’s infrastructure platforms for its basic operations services (see also note 12). In addition, implementation projects related to Future Proof have been written down by NOK 168.5 million, and other balance sheet items have been written down by a total of NOK 71.0 million (see also note 16).

NOTE 2

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Non-recurring items

NOK million 2015 2014

Provisons for restructuring -510.2 -120.0Provisons for premises -100.2 - Write-down of Future Proof -292.7 - Write-down of goodwill - -1 164.3Write-down of other balance sheet items -87.0 -34.3Provisions fire Sweden - -40.0IBM outsourcing agreement -1 234.2 - Strategic process -128.1 -76.9Total non-recurring items -2 352.3 -1 435.5

The Group does not have any single customer that accounts for more than 10% of its consolidated revenue. Information about the Group’s segments for reporting purposes is presented below:

2015

NOK millionOperating

revenue EBITDADepreciation and

write downs EBITA Assets Liabilities CAPEX

EVRY Financial Services 3 576.3 464.4 129.2 335.2 2 864.5 757.6 205.4 EVRY Sweden 3 489.2 297.9 56.7 241.2 2 979.7 900.0 64.7 EVRY Norway 6 084.9 538.0 233.4 326.4 4 242.5 1 794.1 144.8 Corporate costs/ eliminations -290.9 -22.0 48.0 -91.8 990.8 5 480.2 28.3 Non-recurring items - -2 216.4 - -2 216.4 - - - Total 12 859.5 -938.1 467.4 -1 405.4 11 077.5 8 931.9 443.3

2014

NOK millionOperating

revenue EBITDADepreciation and

write downs EBITA Assets Liabilities CAPEX

EVRY Financial Services 3 682.5 523.5 152.0 371.5 2 803.5 569.3 115.1 EVRY Sweden 3 472.2 313.3 58.5 254.8 2 859.7 734.6 79.6 EVRY Norway 6 092.8 545.2 223.1 322.1 4 683.0 1 408.8 255.2 Corporate costs/ eliminations -474.3 -91.2 43.2 -134.6 356.5 3 712.5 40.8 Non-recurring items - -271.2 - -271.2 - - - Total 12 773.1 1 019.6 477.0 542.6 10 702.7 6 425.3 490.7

There are no differences in the measurement methods applied at the segment level as compared to the methods used for the consolidated accounts. In some cases, asset and liability items that relate to more than one segment are allocated to the segments on the basis of revenue.

Geographic segmentsThe Group’s activities are divided between Norway, Sweden (incl Finland) and other countries.Other countries are mainly related to USA and other European countries beside Norway, Sweden and Finland.

Operation revenues

NOK million 2015 2014

Norway 8 052.9 8 302.5 Sweden 4 125.2 3 961.5 Other countries 681.4 509.1 Total 12 859.5 12 773.1

A N NUA L ACCOU NTS GROUP90

MANAGEMENT OF CAPITAL STRUCTURE AND FINANCIAL RISK

1. Management of capital structureEVRY’s main objective for the management of its capital structure is to maximise value creation for shareholders, while at the same time maintaining a sound financial position and a good credit rating. The objective is to generate the best possible long-term return for its shareholders, through dividends paid or share price increases, match or exceed the return available on similar investment opportunities of comparable risk. The Group monitors its capital structure in terms of its equity as a proportion of total assets (equity ratio) and net interest- bearing liabilities as a proportion of total equity (gearing).

NOK million 31.12.2015 31.12.2014

Non-current interest bearing liabilities 4 779.6 3 181.3 Current interest bearing liabilities 3.0 3.0 Bank deposits 900.2 615.6 Net interest bearing liabilities 3 882.4 2 568.8

Equity 2 145.6 4 277.4 Total assets 11 077.5 10 702.7

Gearing 1.81 0.60 Equity ratio 19% 40%

Net interest bearing liabilities are defined as interest-bearing liabilities (current liabilities and non-current liabilities) minus bank deposits. Subsidiary companies have only limited authority to establish independent financing arrangements, and are required to distribute their surplus capital to EVRY AS by means of dividend, repayment of financing or group contributions.

2. Management of financial riskThe Group’s policies for the management of financial risk are determined by the Board of Directors of EVRY AS. The main objective of financial risk management is to identify, quantify and manage exposure to financial risks. Operational responsi-bility for monitoring and managing financial risk is the responsibility of EVRY’s centralised treasury function.

Financial risk is normally divided into three groups:

1. Market risk a. Interest rate risk b. Currency risk c. Price risk /Energy contracts2. Credit risk3. Liquidity risk

1. Market riskThe market risk is the risk of changes in market prices and changes in fundamental conditions in the economy, such as chang-es in interest rates, exchange rates, prices of inputs and the cost of capital.

1a. Interest rate risk Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in the general level of interest rates. The Group’s exposure to interest rate risk relates principally to interest-bearing liabilities on floating interest rate terms. The loan agreement (SFA) have requirements of 50% fixed rate hedging until April 2017. See also note 4 for more information on the Group’s exposure to interest rate risk.

1b. Currency risk The principal objective for EVRY’s management of currency risk is to reduce the effect of changes in exchange rates on future cash flows and on the Group’s financial condition. Currency risk can be divided into i) transaction risk, ii) translation risk and iii) strategic risk:

NOTE 3

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i) Transaction risk represents the risk that future cash flows may fluctuate as the result of changes in exchange rates, and it arises as a result of financial transactions that involve agreement on future receivables or liabilities that are settled in a currency other than the Group’s functional currency.

EVRY has both revenue and costs denominated in foreign currencies, accordingly it engages in some degree of routine activity to hedge the foreign currency component of financial transactions. The Group has also established an arrange-ment for multicurrency bank accounts for the Group, and these accounts are used to reduce exposure to currency risk at the group level. The Group hedges future receipts and payments denominated in foreign currency where the amount is greater than the equivalent of NOK 50 million by entering into forward contracts that mature on the settlement day for the pay ment.

ii) Translation risk represents the risk that assets or liabilities may be exposed to changes on currency conversion as the

result of changes in exchange rates. Since the Group has a significant scale of activities in Sweden, it arranges for part of its borrowings to be denomi nated in

Swedish kroner (net investment). iii) Strategic risk is a concept used to describe the long-term effects of changes in exchange rate, such as establishing

business operations in low-cost countries, importing from countries with low commodity prices and other exposure to currency risk in relation to strategic decisions.

EVRY has established subsidiary companies in India and Ukraine. These two companies have income mainly in Euro and US dollar. The Group’s exposure to currency risk relates principally to Swedish kroner (SEK), Euro (EUR) and US dollar (USD).

See also note 4 for more information on the Group’s exposure to currency risk.

1c. Price risk/Energy contractsThe Group purchases energy in the spot market, and hedges prices for part of its energy requirements by using pric ing con-tracts in the forward market. The objective of this strategy is to reduce the risk of fluctuation in the cost of energy purchases, and thereby provide greater certainty for cash flow. Energy contracts work in such a way that the Group pays the spot price for its actual power consumption, but pays the difference when the value of the contract is higher than the spot price and receives the difference when the con tract value is lower than the spot price. The price of the electric power actually consumed is determined on the basis of the local area price, hence the com pany is exposed at all times to local area risk. The prices used for hedging contracts are determined on the basis of the national grid price (average price calculated by Nord Pool). Changes in fair value are divided between an effective hedging element and an ineffective hedging element, with changes in the value of the effective hedging element applied directly to equity (hedge accounting). In order for hedging to be deemed effective, the hedge effective ness must be in the range 80% - 125%. All energy contracts are denominated in Euro, hence the NOK/EUR exchange rate will also affect the risk exposure arising from energy purchases. See also note 4 for more information on the Group’s energy contracts.

2. Credit risk Credit risk relates to the risk that the Group’s counterparties fail to make the payments to which they are com mitted, causing the Group to suffer a financial loss. The responsibility for credit control and collection of overdue amounts is centralised in a separate unit within the Group. No significant provisions were required in 2015 for losses on receivables from customers. The Group’s maximum exposure to credit risk at 31 December 2015 was NOK 1 912.0 million. See also note 15 and note 16 for more information on the Group’s exposure to credit risk.

3. Liquidity risk Liquidity risk arises if the cash flows generated by the Group are not sufficient to match its financial liabilities as they fall due. It is Group policy to operate at all times with financing arrangements with its banks in order to make it possible to use bank facilities to finance investments. The Group restricts its current interest-bearing debt to a minimum in addition to the credit facility in order to ensure that the risk of refinancing are reduced. Financing for corporate acquisitions is evaluated independently. The Group monitors its liquidity daily, and produces liquidity forecasts on a regular basis in order to iden tify liquidity requirements in future periods. See also note 4 for more information on the Group’s exposure to liquidity risk.

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FINANCIAL INSTRUMENTS

A) Non-current interest bearing liabilities and interest rate risk

Non-current interest bearing liabilities

NOK million 31.12.2015 31.12.2014

Financial lease 22.1 25.2Liabilities to credit institutions 4 883.4 3 156.2Arrangement fee financing -125.8 -Non-current interest bearing liabilities 4 779.6 3 181.3

In March 2015 EVRY entered into a new financing arrangement - Senior Facility Agreement - (SFA) with a syndicate of banks with DNB Bank, Nordea Bank, Bank of America Merrill Lynch, Credit Suisse and Mizuho Bank and as arrangers. The facilities are syndicated to a number of banks and financial institutions. The new financing consists of various tranches in an aggre-gate frame of NOK 5.5 billion with maturity profiles of six and seven years. Parts of the debt is in SEK and EUR.

The new financing ensures that EVRY achieves financial headroom at market rates with initial margins in the range of 4 to 5%, with possibility for reduction given company performance. The covenants are based on e.g. cash interest cover ratio (EBITDA to net financial charges) and gearing ratio (net interest bearing debt to EBITDA). The Group is in compliance with its financial covenants. Commitment fees and loan setup fees totalling NOK 192.5 million have been capitalised. Of this amount, NOK 30.0 million was recognised as financial expense as of 31 December 2015.

In connecting with the outsourcing agreement with IBM starting 1 December 2015 a vendor financing agreement was es-tablished with IBM Financing. The financing agreement has a duration of six years. By end of 2015 the non-current interest bearing liabilities were NOK 293.1 million.

Interest rate swap agreementsIn order to secure fixed interest rate terms, EVRY AS has entered into interest rate swap agreements for principal amounts of NOK 1 680 and SEK 700 million. As a result of these agreements, the Group pays fixed interest rates on 53% of its total borrowing portfolio under SFA. The interest rate swap agreements are structured in relation to specific borrowings in order that the quarterly rollover dates for the swap agreements correspond with the rollover dates for the borrowings. Changes in the market value of these swaps are recognised as part of comprehensive income.

Interest rate swaps 31 December 2015:

Currency Amount Maturity date Fixed interest rate Market value

Interest rate swap Nordea NOK 230 20.04.18 1.58% -4.1 Interest rate swap DNB NOK 250 20.04.18 1.62% -4.5 Interest rate swap SEB SEK 500 20.01.17 1.64% -10.3 Interest rate swap Nordea NOK 300 21.01.19 2.64% -16.3 Interest rate swap Nordea NOK 500 21.01.19 2.97% -32.1 Interest rate swap Nordea SEK 200 21.01.19 1.26% -7.2 Interest rate swap Nordea NOK 200 20.04.20 1.62% -5.0 Interest rate swap Nordea NOK 200 20.04.20 1.61% -5.0

The average duration of interest rate swap agreements as at 31 December 2015 was 2.7 years.

Interest rate risk – sensitivity analysisThe Group’s exposure to interest risk is dependent on the general level of market interest rates (Nibor/Stibor). The company incurs significant interest costs on its borrowings, and a change in interest rates would represent an significant increase/ decrease in the company’s overall earnings. The Group uses interest rate swaps to hedge against large fluctuations in cash flow. An increase in the general level of interest rates will cause an increase in interest expense, but the effect will be offset to some extent by interest rate swaps through which the Group pays a fixed rate of interest and receives a floating rate of interest.

NOTE 4

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The Group calculates the valuation effects on its holdings of financial instruments by simulating a change in the yield curve. An increase in the general interest rate will increase the value of the Group’s interest rate swaps, while at the same time the Group’s interest costs will rise as a result of higher interest rates payable on the part of its total borrowings that is subject to floating interest rates. The table below shows the effect of an increase of 100 basis points in interest rates on the consolidated profit and loss account:

NOK million 2015 2014

Change in fair value interes rate swaps 54.6 49.3Change in interest expenses after tax -15.6 -8.6Effect on total profit 39.0 40.7

B) Exchange rate risk and currency hedge

Financial items per currency 31 December 2015:

NOK million SEK USD EUR Other

Accounts receivable 503.4 76.2 80.8 21.1 Accounts payable 195.7 6.0 16.4 26.1 Bank deposits 188.7 83.4 86.7 78.5 Non-current liabilities 1 087.7 - - - Net exposure financial position -591.2 153.6 151.0 73.5

At the end of 2015 the Group had borrowed SEK 1 038.0 million to hedge its investments in Sweden. Translation differences in respect of liabilities and receivables due from foreign activities are applied as comprehensive income. The translation difference recognised in 2015 amounted to NOK 20.7 million after tax. Net investments denominated in SEK amounted to NOK 834.0 million of 31 December 2015. Accordingly, a change in the SEK/NOK exchange rate of 100 basis points would cause a change in the book value of NOK 8.3 million.

Parts of the new financing agreement is debt in EUR, in total EUR 338.0 million. The Group has entered into EURNOK and EURSEK cross currency swaps on this EUR debt, to eliminate the EUR exposure. Changes in the market value of hedging instruments are recognised as part of comprehensive income. The market values of these hedging instruments were NOK 196.1 million at year end 2015.

The company has no material balance sheet risk in relation to other currencies.

Exchange rates of relevance:

2015Average

2015Spot

2014Average

2014Spot

SEK 0.9572 1.0475 0.9184 0.9597EUR 8.9530 9.6190 8.3534 9.0365USD 8.0739 8.8090 6.3018 7.4332GBP 12.3415 13.072 10.369 11.571

A N NUA L ACCOU NTS GROUP94

C) Liquidity risk

NOK million 2015 2014

Liquidity reserve 31 December 2 209 2 414 Liquidity reserve/Revenues last 12 months 17.2% 18.8%

Maturity profile for financial liabilities:

NOK million Total 0 - 1 year 1- 5 yearMore than

5 years

Accounts payable 577.3 577.3 - - Deductions and duties payable 1 053.3 1 053.3 - - Other current liabilities 1 904.0 1 904.0 - - Financial lease 22.1 - 12.6 9.5Maturity credit facility 4 883.4 - 943.8 3 939.6 Non-current non-interest bearing liabilities 90.1 - 90.1 -Other non-current provision for liabilities 316.1 - 316.1 -Interests 1) 2 424.7 375.0 1 528.1 521.6 Total financial liabilities 11 271.0 3 909.6 2 890.7 4 470.7

1) Estimate based current debt portfolio, current forward curve and current margins.

D) Energy contracts

NOK million 2015 2014

Fair value energy contracts -6.5 -7.0Ineffective part of hedging 0.5 -0.6

Changes in the market value of hedging instruments since 31 December are recognised as part of comprehensive income. If any part of the hedging is evaluated as not effective, the change in value is recognised as Other financial income/expense.

ANNUAL ACCOUNTS G ROUP 95

USE OF ESTIMATES

A key accounting estimate is an estimate that is important for the presentation of the Group’s financial position and profit, and that requires subjective and complex evaluation by the company’s management, typically as the result of the need to determine such estimates based on assumptions about future outcomes that are subject to uncertainty. The Group keeps such estimates under constant review on the basis of historical results and experience, consultation with experts, trends, forecasts and other methods that the Group considers reasonable in specific circumstances including evaluating how such factors may change in the future. Goodwill and other intangible assetsThe Group tests goodwill for impairment annually. The book value of goodwill in the Group’s cash-generating units is mea-sured against the value in use of goodwill in these units. The recoverable amount from cash generating units is determined through calculations of value in use. These calculations are based on discounted cash flows that involve uncertainty and require the use of estimates. A change in the yield requirement used for discounting future cash flows will affect the book value of goodwill. An increase in the yield requirement will, in isolation, cause a lower value in use which in turn will cause a fall in the value of goodwill. Note 12 to the consolidated accounts provides sensitivity analysis in respect of the calculation of value in use. Other intangible assests are tested for are tested for impairment if there are indications of a material loss of value. Income recognitionWhere operating services are provided through volume-based contracts, revenue is recognised on the basis of the actual use of services by the customer. If there is no reconciliation/account of actual use at the end of the accounting period, revenue for the period is estimated on the basis of historic figures, adjusted for any known events/information that have influenced usage during the period. Where services are recognised to revenue on the basis of the degree of completion, revenue is estimated on the basis of the number of hours delivered as a proportion of the total estimated number of hours that will be required for the delivery. Depreciation of tangible assets and intangible assetsDepreciation is based on management’s estimate of useful life. Such estimates may change as a result of technological de-velopments, competition, changes in market conditions and other matters. This may cause changes in the estimated useful life and accordingly in depreciation. Onerous contractsProvisions made in respect of onerous contracts are determined on the basis of management’s best estimate of the expen-diture that would be required to settle the present obligation at the balance sheet date. This represents the amount that the Group would rationally pay to settle the obligation at the balance sheet date or to transfer it to a third party. A provision in respect of an onerous contract is recognised in full in the period in which the contract is recognised as being onerous.

Capitalisation of development projectsWhen capitalising development costs that relate to the use of internal resources, costs are estimated using an hourly rate based on the direct costs per employee. In the event of any indication of the need for a write-down in respect of an individ-ual development project, the recoverable amount is tested against the book value. The recoverable amount assigned to the development project is determined on the basis of calculations of value in use. These calculations are based on discounting future cash flows that involve uncertainty and require the use of estimates. A change in the forecast revenue or margin used when estimating future cash flows will affect the estimated value of the development project in question.

NOTE 5

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SALARIES AND PERSONNEL COSTS

Salaries and personnel costs

NOK million 2015 2014

Salaries 5 340.3 4 862.5Social security tax 850.9 850.9Pension costs 420.5 399.3Other benefits 485.9 336.0Total salaries and personnel costs 7 097.6 6 448.7

Average number of employees 10 109 10 347 Average number of man years 9 931 10 151

Executive management remuneration

NOK million Period 2015

Chief Executive Officer (Björn Ivroth) : 24.3 - 31.12Salary 2.710Bonus - Sharebased remuneration (LTI) - Pension benefits earned through the year 0.518Other remuneration 0.281

Terje Mjøs was CEO until 24 March 2015. He received NOK 14.3 million in 2015 in total salary payments and other remu-neration, including severance pay. His total salary and other remuneration amounted to NOK 8.0 million in 2014. He also entered into a consulting agreement in 2015 with the holding company Lyngen Bidco AS.

Other members of the executive management 2015

NOK million Period Salary BonusOther

remuneration Pensions

Henrik Schibler 1.9 - 31.12 0.900 - 0.055 0.156Wiljar Nesse 1.1 - 31.12 2.284 1.822 0.199 0.350Morten Sæther 1) 15.9 - 31.12 1.639 0.438 0.101 0.111Fredrik Almén 1.11 - 31.12 0.345 - 0.017 0.044Trond Vinje 17.8 - 31.12 0.519 - 0.060 0.051Janne Marie Log 1) 1.9 - 31.12 1.441 0.262 0.131 0.062

Previous members of the executive managementKnut E Røsjorde 1.1 - 31.8 1.491 2.134 3.404 0.042Anne-Cecilie Fagerlie 1.1 - 31.8 1.662 1.513 2.431 0.042Morten Søgård 1.1 - 15.9 2.101 1.521 0.198 0.392Niclas Ekblad 1.1 - 30.11 3.679 2.570 0.143 1.149Håvard Larsen 1.1 - 30.11 1.970 0.739 1.066 0.162Kurt Helland 1) 1.1 - 30.9 1.919 1.220 0.153 0.272

1) Remuneration figures are for the year as a whole, while the period refers to the period for which the employee was a member of the executive management team.

NOTE 6

ANNUAL ACCOUNTS G ROUP 97

Other members of the executive management 2014

NOK million Period Salary

Sharebased remuneration

(LTI) Bonus Pensions

Knut E. Røsjorde 1.7 - 31.12 1.005 0.248 - 0.180Anne-Cecilie Fagerlie 1.961 0.400 0.105 0.286Morten Søgård 2.010 0.400 0.406 0.357Wiljar Nesse 2.089 0.420 0.655 0.289Niclas Ekblad 3.134 0.643 0.909 0.990Håvard Larsen 2.036 0.350 0.476 0.321Kurt Helland 1.4 - 31.12 1.315 0.314 0.205

Previous members of the executive managementEli Giske 1.1 - 28.2 0.790 - 0.576 0.163Knut Morten Aasrud 1.1 - 31.1 2.447 - - 0.034

The total remuneration of the CEO and other members of the Executive Management consists of a fixed package of salary and benefits supplemented by performance-based bonuses, share-based long-term incentive schemes, pension and insurance arrangements and severance pay. The Board of EVRY AS has approved a bonus scheme for the CEO and members of the Executive Management, whereby bonuses will be paid based on the achievement of pre-determined targets. The maximum bonus entitlement for the CEO and CFO is 18 months’ fixed salary, while the maximum bonus entitlement for the other mem-bers of the Executive Management is up to 6 months’ fixed salary. The Board of Directors has established detailed guidelines to implement the above principles.

The Executive Management are members of a defined contribution pension scheme. They are additionally members of an unin-sured defined benefit pension scheme for the portion of their salary that exceeds 12 times the national insurance base amount (G), cf. note 7 to the Annual Accounts. Rights accrued in respect of the defined benefit pension scheme will be paid from retirement age.

A new share-based long-term incentive program was established in 2015 for some members of the Board of Directors of EVRY AS, the Executive Management and certain other key employees. Those included in the program have been given the opportunity to invest in shares in Lyngen Topco AS, which indirectly owns 88% of the shares in EVRY AS. See note 18 for further information on EVRY AS’s ownership structure. The shares are purchased at market prices.

The CEO has waived the redundancy rights provided by Chapter 15 of the Working Environment Act, cf. Section 15-16. He is entitled to receive salary for 3 months following the normal notice period of 9 months. The other members of the Executive Management are entitled to receive salary for periods of between 0 and 12 months following notice periods of between 6 and 12 months. Both the CEO and the other members of the Executive Management are subject to non-compete agreements.

No member of the Executive Management received any remuneration or other benefits from any other company in the Group other than as set out above. No additional payments were made for special services over and above an individual’s normal management responsibilities.

Board of DirectorsRemuneration to the Board of Directors in 2015 was paid out as follows:

NOK million Remuneration

Göran Lindahl 0.144Eirik Bornø 1) 0.348Ola Hugo Jordhøy 1) 0.288Jan Anders Dahlström 1) 0.288Ingrid Lund 1) 0.328Total remuneration 1.396

1) Employee elected board members.

The remuneration to the Board of Directors are determined in advance and paid out every six month with one half each time. The employee elected board members receives the renumeration from the board in addition to ordinary salary from the company.

A N NUA L ACCOU NTS GROUP98

PENSIONS

The Group provides pensions principally through insured collective schemes with life insurance companies. Pension arrangements related at 31 December 2015 to 6 280 active employee members of defined contribution pension schemes and 587 pensioners in insured defined benefit schemes. In addition the Group have various compensation- and uninsured pension plans that includes 1 693 employees. The presentation of pension costs and pension liabilities set out below aggre-gates the various pension arrangements provided by the Group. The figures therefore include a number of different defined benefit, defined contribution and multi-company pension schemes.

The Group’s Norwegian companies operate a defined contribution pension scheme for employees. The annual contribu-tions to this scheme are at the rates of 4% for salaries between one and six times the social security base amount (G) and 8% for salaries between 6 G and 12 G.

The employees of the Group’s Norwegian companies is members of the common scheme of AFP early retirement pension arrangement.The scheme gives a lifelong supplement to the ordinary pension. Employees can choose whether to draw the new AFP pension from 62 years of age, even if they continue to work, and additional rights can be earned by working until 67 years of age. The scheme is a multi-company defined benefit scheme, and is financed by premium payments determined as a percentage of salary. There is as yet no reliable measurement and allocation of liabilities and assets between the companies that participate in the scheme. The new scheme is therefore treated for accounting purposes as a defined contribution pension scheme and the premiums paid are recognised as costs through profit and loss with no provision made in the accounts. The premiums paid in 2015 were set at 2.4% of total salary payments for salary payments to the employer’s employees between the social security base amount (G) and 7.1 G. The equivalent premium rate for 2016 will be 2.5%, and it is expected that the level of premiums will increase in future years. The scheme is underfunded, and the administrator (Fellesordningen for AFP) assumes that premiums will have to increase over time in order to ensure sufficient buffer capital to cope with increased payments. Companies that participate in the AFP scheme are jointly and severally liable for two-thirds of the pension payments due to employees who satisfy the terms and conditions at any time. The liability applies both to shortfalls in premium payments and if the premium rate applied proves insufficient to meet the liabilities. In the event that the scheme is terminated, the participating companies have a duty to continue to make premium payments to provide for pension payments to employees who are members of the scheme or who satisfy the requirements of collective agreements for such pension arrangements at the date of termination.

Employees in the Group’s Swedish companies are principally members of the ITP pension scheme. The ITP scheme is based on collective agreement between the Confederation of Swedish Enterprise and the Council for Negotiation and Co-operation representing salaried employees within the private sector. ITP came into operation on 1 July 2007, and applies to employees born in 1979 or later. All new employees become members of the scheme at 25 years of age. The ITP scheme is a defined contribution scheme, to which the employer contributes 4.5% of salary up to 7.5 times the “basic income amount” and 30% of salary over this amount. Employees born before 1979 are members of the old scheme, which is a combination of a defined contribution scheme and a defined benefit scheme (ITPK and ITP2 respectively). ITP2 is a multi-company scheme that provides a retirement pension calculated as 10% of final salary for salary up to 7.5 times the “basic income amount”, 65% of final salary for salary between 7.5 times and 20 times the “basic income amount” and 32.5% of final salary for salary between 20 times and 30 times the “basic income amount”. Full pension entitlement is earned after 30 years of pensionable employment. There is no reliable measurement and allocation of the company’s share of the overall assets and liabilities of the scheme. The scheme is therefore treated in the accounts as a defined contribution scheme. ITPK is a defined contribu-tion scheme with a contribution rate of 2% with the possibility of additional contributions by agreement.

The members of executive management are members of a pension plan financed from operations. The operations pension plan is not subject to the legislation on defined contribution pensions or the legislation on enterprise pensions, and is not funded. The annual pension entitlement is calculated as 25% of salaries exceeding 12 G for the CEO and the other members of executive management. The annual return shall at a minimum equal 12 months NIBOR as at 31 December of the previous year. The accumulated accrued entitlement, including investment return and employer’s social security contributions, totalled NOK 20.1 million at 31 December 2015.

Pension costs

NOK million 2015 2014

Current value of pension entitlement accrued over the year 23.2 18.8Net interest on pension liabilities 3.7 4.1Curtailments and settlements -4.4 - Pension costs charged to profit and loss from defined benefit plans 22.5 22.9Defined contribution schemes and early retirement plans 398.0 376.4Pension costs charged to profit and loss 420.5 399.3

NOTE 7

ANNUAL ACCOUNTS G ROUP 99

Change in calculated pension liabilities

NOK million 1.1 - 31.12.2015 1.1 - 31.12.2014

Implementation of IFRS 11 - -11.2Defined benefit obligations 1 January 916.7 790.0Current value of pension entitlement accrued over the year 23.2 18.8Interest on pension liabilities 18.1 26.1Actuariel gains and losses -40.8 128.8Acquisition/sale of business, curtailment and settlement -48.8 - Pension payments -45.9 -47.0Defined benefit obligations 31 December 822.3 916.7

Change in fair value of plan assets

NOK million 1.1 - 31.12.2015 1.1 - 31.12.2014

Implementation of IFRS 11 - -6.8Fair value of plan assets 1 January 702.3 682.0Actual return on plan assets 18.5 47.8Curtailment and settlement -34.7 - Pension premium paid 11.3 8.5Pension payments -36.9 -36.0Fair value of plan assets 31 December 660.5 702.3

Pension liabilities

NOK million 1.1 - 31.12.2015 1.1 - 31.12.2014

Gross liability to provide pensions (PBO) 822.3 916.7Fair value of plan assets 660.5 702.3Effect of asset ceiling -49.8 -27.7Net pension liability 211.6 242.1

Plan assets in the statement of financial position - - Pension liabilities in the statement of financial position 211.6 242.1

Change in pension liabilities

NOK million 1.1 - 31.12.2015 1.1 - 31.12.2014

Implementation of IFRS 11 - -4.4Pension liabilities 1 January 242.1 182.2Pension costs 22.5 22.9Effect of actuarial gains and losses recognised as comprehensive income -22.6 57.2Premium payments -11.3 -8.5Acquisition/sale of business -9.7 - Benefits paid and Paid-up policies -9.4 -11.8Pension liabilities 31 December 211.6 242.1

A N NUA L ACCOU NTS GROUP10 0

The effect for the year of actuarial gains and losses recognised as other comprehensive income represented a decrease in pension liability of NOK 22.6 million, principally as the result of an increase in discount rate as a parameter to calculate net pension liability.

The summarised information presented is based on annual calculations carried out by an independent actuary.

The following assumptions are used in the actuarial calculations, as of 31 December:

2015 2014

Discount rate 2.70% 2.30%Future salary inflation 2.50% 2.75%Growth in the basic state pension (G) 2.25% 2.50%Annual increase in pensions 0.00% 0.00%Staff turnover Own table Own tableMortality assumptions K2013 K2013

The assumptions used for pension calculations follow the guidelines issued by the Norwegian Accounting Standards Board (NRS) as at 31 December 2015. Over recent years, the Norwegian market for covered bonds has grown strongly. NRS has therefore accepted the use of covered bond interest rates as the basis for the discount rate for pension calculations instead of using the interest rate on Norwegian government bonds. Based on it’s assessment of the depth in the Norwegian market for covered bonds, EVRY has applied the parameters recommended by the NRS 2015 guidelines, which includes using the covered bond interest rate as the basis for the discount rate. Pension calculations use the K2013 table for mortality risk, which is based on the best estimate of the population in Norway. The risk table for disability, IR02, corresponds with the estimated risk of disability in the Group. Extracts of information from the risk tables are provided below. The table shows the likelihood of an employee in a specified age group for men and women becoming disabled or dying within 12 months, and also shows life expectancy.

Life expectancy

Age Men Women

20 88.6 92.440 87.0 90.660 86.0 89.480 89.3 91.6

Mortality expectancy

Age Men Women

20 0.02% 0.01%40 0.06% 0.04%60 0.46% 0.31%80 4.65% 3.18%

Disabillity expectancy

Age Men Women

20 0.10% 0.10%40 0.20% 0.30%60 1.90% 2.90%

ANNUAL ACCOUNTS G ROUP 101

Uncertainty of estimatesCalculations of pension cost for the year and the book value of pension liability are based on the assumptions above. Considerable uncertainty attaches to the amounts calculated, which principally vary in pace with the level of interest rates in Norway.

The plan assets as of 31 December were invested as follows:

Investment category

2015 2014

Bonds 62% 60%Equity securities 29% 29%Properties 8% 9%Other 1% 2%Total 100% 100%

Pension assets are invested in bonds issued by the Norwegian government, Norwegian municipalities, financial institutions and corporations. Bonds held in foreign currencies are to a large extent currency hedged. Pension assets are invested both in Norwegian and foreign equity securities. The currency hedging policy for foreign equity securities is evaluated on an individ-ual investment basis. Pension assets are invested in accordance with the guidelines applying to life insurance companies.

The Group expects to pay approximately NOK 6.6 million in pension premiums to the Group’s defined benefit plans in 2016.

The weighted average duration of the Group’s pension liabilities as of 31 December 2015 was 18 years, and the maturity structure over the next 10 years is as follows:

NOK million

Year 1 42.0Year 2 42.8Year 3 43.0Year 4 45.8Year 5 47.1Years 6-10 253.5

Sensitivity analysisThe table below shows the estimated percentage change in pension liability (PBO) and pension cost for the defined benefit pension schemes in Norway in the event of a one percentage point change in the most important parameters. This analysis has been carried out using a method that extrapolates the effect on pension liabilities of a change in the calculation para-meters at the expiry of the reporting period.

PBO Pension costs

Discount rate -1% 11.4% 3.5%Discount rate +1% -9.2% -2.9%Future salary inflation -1% -0.4% -3.0%Future salary inflation +1% 0.7% 4.5%Growth in the basic state pension (G) -1% 0.6% 2.5%Growth in the basic state pension (G) +1% -0.4% -1.5%Annual growth in pensions +1% 10.4% 2.3%

Risk assessmentThe Group is exposed to various risks in relation to its defined benefit pension arrangements as a result of uncertainty in rela-tion to the assumptions applied and future outcomes. The most important areas of risk relate to increasing life expectancy, the risk of a reduction in the actual return earned on pension assets and risks associated with higher inflation and salary increases. Changes of this nature would cause an increase in liability for the Group. However, risk exposure in this respect has been significantly reduced following the closure by the Group of a number of defined benefit pension schemes over recent years.

A N NUA L ACCOU NTS GROUP10 2

COST OF GOODS SOLD AND OTHER OPERATING COSTS

Cost of goods sold comprise:

NOK million 2015 2014

Purchase and lease of software 1 066.1 1 058.6Purchase and lease of hardware 237.0 285.0Consulting services 415.9 422.3Network capacity 286.1 307.4Use of goods for resale 1 238.5 1 069.9Other cost of goods sold 1 634.2 482.1Total cost of goods sold 4 877.9 3 625.4

Other operating costs comprise:

NOK million 2015 2014

Premises rental and other premises costs 701.9 646.8Consulting costs 441.3 424.4Travel costs 178.7 208.0Other operating costs 402.2 398.3Total other operating costs 1 724.0 1 677.5

Consulting costs which are reinvoiced as a part of a customer contract are classified as cost of goods sold in the statement of comprehensive income. Other consulting costs are classified as other operating costs.

The increase in other costs of goods sold relate to a significant extent to provisions associated with agreed transitions and customer transformations needed to convert to IBM’s platform technology (see note 2).

Auditor’s remunerationThe following table shows remuneration to the Group’s auditor, EY, in respect of audit services delivered, including the amounts invoiced in respect of audit-related and tax-related services. The amounts shown include both Norwegian and foreign subsidiaries, and are exclusive of value added tax.

NOK million 2015 2014

Audit fee 8.827 8.149 Assurance services 4.260 7.559 Other audit related services 1.162 1.028 Tax related services 0.891 2.206 Total remuneration 15.140 18.942

Assurance services includes attestation services related to ISAE 3402 and SAS 70. These expenses are mainly reinvoiced by the company.

NOTE 8

ANNUAL ACCOUNTS G ROUP 103

FINANCIAL ITEMS

NOK million 2015 2014

Interest income 18.4 36.7Other financial income 1.5 1.9Total financial income 19.8 38.7

Interest expenses 284.1 168.1Other financial expenses 106.4 17.0Total financial expense 390.5 185.1

Currency gains 537.3 405.0Currency losses 497.1 346.0Net foreign exchange gain/-loss 40.2 59.0

Increased interest expenses are due to the new financing agreement with an increased gearing and higher interest margins (see note 3).

TAXES

Deferred tax/tax asset is calculated on the basis of the differences which exist at year-end between accounting and taxation values. Deferred tax/tax asset arises in respect of the following timing differences:

NOK million 31.12.2015 31.12.2014

Intangible assets 1 135.5 1 010.6 Tangible assets -447.5 -307.2 Pension liabilities -129.0 -138.1 Profit and loss account 66.4 79.7 Items recognised as "comprehensive income" 98.4 -107.2 Other timing differences -910.4 49.9 Gross timing differences -186.6 587.7 Losses carried forward -2 131.4 -880.7 Basis for deferred tax/(deferred tax asset) -2 318.0 -293.0

Deferred tax asset 477.6 3.7 Deferred tax - 23.5

NOTE 9

NOTE 10

A N NUA L ACCOU NTS GROUP10 4

Items recognised as Other income and costs relates to the following, with corresponding taxation effects:

NOK million 2015 2014

Market value of financial derivatives 48.1 -15.0Pension estimate changes 5.5 -11.3Translation differences -8.4 -2.0

The Group had tax losses carried forward at 31 December 2015 totalling NOK 2 131.4 million, and the calculated deferred tax asset related to these losses amounted to NOK 519.7 million. The losses carried forward relate very largely to the operation of the Norwegian activities. There are no time limits to carrying forward these losses. Losses carried forward are partially netted against positive timing differences. Deferred tax assets totalling NOK 97.7 million relating to tax losses carried forward are not recognised in the accounts at 31 December 2015. Corresponding amount at 31 December 2014 was NOK 108.4 million.

NOK million 2015 2014

Changes in deferred taxChange in deferred tax to profit and loss -542.6 28.6 Deferred tax from discontinued operations - 1.0 Other changes in deferred tax not taken to profit and loss 45.2 -27.1 Change in deferred tax in the statement of financial position -497.4 2.5

Tax cost for the year comprisesTax payable 90.8 61.4 Change in deferred tax -542.6 28.6 Under/over accrual of tax prior year -3.6 -4.1 Total tax of the year from continuing operations -455.4 86.0

Effect of permanent differences27% of profit before tax -513.8 -201.1 Expenses not deductible 5.0 6.5 Non-deductible impairment of goodwill - 314.4 Non-taxable income 3.7 -7.7 Losses/tax rate differences abroad 3.0 -18.9 Tax rate change in Norway 47.7 - Under/over accrual of tax prior year -3.6 -4.1 Other permanent differences 2.5 -3.2 Tax of the year from continuing operations -455.4 85.9

Tax of the year from discontinued operations -5.9 2.8

ANNUAL ACCOUNTS G ROUP 105

EARNINGS PER SHARE

Earnings per share is calculated as profit for the year attributable to shareholders (owners of the parent company) divided by the average weighted number of shares outstanding over the year.

NOK 2015 2014

Profit for the year attributable to shareholders (owners of the parent) -1 133 100 000 -963 800 000Share of comprehensive income attributable to shareholders (owners of the parent) -277 600 000 92 700 000Total Profit for the year attributable to shareholders (owners of the parent) -1 410 700 000 -871 100 000

Average number of shares in the period 267 187 441 266 994 898Effect of employee options - - Diluted average number of shares 267 187 441 266 994 898

Earnings per share (NOK) -5.28 -3.26

Dividend proposed for approval by the Annual General Meeting(not recognised as a liability at 31 December)Proposed total dividend payment (NOK) - - Proposed dividend per share - -

INTANGIBLE ASSETS

NOK million Goodwill

In-house Developed

Software

Customer contracts and other

intangible assets Total

Book value at 1 January 2014 6 584.7 233.9 278.2 7 096.8

Additions in the year 13.5 92.6 117.1 223.2 Disposal/reclassification in the year - - -3.6 -3.6 Depreciations - -91.7 -75.3 -167.1 Write-downs -1 164.3 -6.1 - -1 170.4 Translation differences 12.0 0.4 0.2 12.6 Book value at 31 December 2014 5 446.0 229.0 316.5 5 991.4

Additions in the year 10.7 146.7 55.2 212.6 Disposal/reclassification in the year - - - - Depreciations - -84.0 -72.1 -156.1 Write-downs - - -135.9 -135.9 Translation differences 208.3 6.4 2.8 217.5 Book value at 31 December 2015 5 665.0 298.1 166.6 6 129.6

Useful life yearly assessment 1 - 4 years 2 - 10 years

Method of depreciationWeighted cash flow Linear

NOTE 11

NOTE 12

A N NUA L ACCOU NTS GROUP10 6

Costs of NOK 146.7 million in respect of in-house developed software were capitalised in 2015, of which NOK 109.1 million related to investments carried out in the Financial Services segment. These investments are mainly related to the development of a new core banking and payment solutions, built on industry standards such as ISO 20022, SOA and BIAN and adapted to an international market. Investments in customer contracts and other intangible assets totalled NOK 55.2 million in 2015. The Future Proof program has been written down entirety in the accounts for 2015 of NOK 135.5 million as a consequense that the company in the future will deliver basic infrastucture services to the company’s customers using IBM’s technology (see also note 2).

Other development work carried out in the Group relates to customer-specific projects, where the income derived from these projects exceeds the development costs.

Allocation of goodwill to cash-generating units:

NOK million 31.12.2015 31.12.2014

Nordic Operations - - Financial Services 1 612.7 1 612.7 Norway 1 685.3 1 674.6 Sweden 1) 1 798.7 1 596.6 Other Business - - BEKK Consulting 381.8 381.8 Global Delivery 186.5 180.3 Total 5 665.0 5 446.0

1) The increase from 2014 to 2015 was entirely due to changes in exchange rates.

The Group evaluates whether there are any indications of a possible impairment of goodwill on a quarterly basis. The Group also tests goodwill for impairment at other times if this becomes necessary as a result of indications of possible impairment, and such tests are always carried out at year-end. Goodwill is tested for impairment for each identified cash generating unit in the Group. A ‘cash generating unit’ represents the lowest identifiable group of assets that generates cash inflow while being for all practical purposes independent of cash inflow generated by other assets or groups of assets. The number of cash generating units in 2015 was seven, unchanged from 2014, and in line with the Group’s business area structure.

On 16 March 2015 Lyngen Bidco AS, a company indirectly controlled by private equity funds advised by Apax Partners LLP, acquired 234 797 184 shares in EVRY AS, equivalent to approximately 88% of the total share capital, at NOK 16 per share. The transaction valued the Group’s equity at NOK 4 277.4 million. This led to the Group’s goodwill being written down by NOK 1 164.3 million at 31 December 2014 as a result of the Group’s value in use being determined by the transaction price of NOK 16 per share. Based on the financial results reported by the Group, the goodwill written down for the 2014 financial year related to the Nordic Operations, Norway and Other Business cash generating units.

For the 2015 financial year the Group has determined the value in use of its cash generating units using the discounted cash flow method, with the exception of the BEKK Consulting and Global Delivery cash generating units, where value in use has been calculated using valuation multiples. Future cash flows have been determined on the basis of the Board-approved budget for 2016. Cash flows for after 2016 (terminal values) have been extrapolated from the cash flows for 2016, adjusted for the expected level of long-term revenue growth.

The impairment tests carried out at the end of 2015 do not show any need to write down the Group’s goodwill. The Group has delivered financial results for 2015 that are in line with expectations and it has, together with the cost reduction mea-sures that have been implemented and the outsourcing agreement entered into with IBM, created a sound foundation for strengthening its market position and growth rate going forward.

ANNUAL ACCOUNTS G ROUP 107

The estimates used to determine future cash flows and the discount rate used when calculating value in use are subject to uncertainty. The assumptions applied are as follows:

Growth rateAverage rates of growth in operating revenue are based on management’s expectations of future conditions in the markets in which the business operates. The assumed long-term growth rate beyond the budgets and strategic plans approved by the Board cannot be higher than the long-term rate of growth in the economy where the business operates.

EBITA marginEBITA margins are based on the volume/margins achieved historically, adjusted for expected future developments in market conditions. Programs to improve efficiency that are approved and committed are taken into account in determining the expected future EBITA margins.

Investment (CAPEX)Calculations of value in use assume a normalised relationship between investment and operating revenue. It is assumed that the operational investments and investments in software developed in-house that are necessary to achieve the expected growth in revenue will be carried out. The cash generating units Nordic Operations and Financial Services are more capital intensive than the other cash generating units, and accordingly CAPEX for these units is forecast at a higher percentage of revenue.

Discount rateFuture cash flows are discounted to present value using a discount rate based on a calculation of a weighted average cost of capital (WACC). For 2015, pre-tax WACC was assumed to be 7.38%. This is based on a risk-free interest rate of 1.54%, a gearing ratio of 20%, an equity market premium of 6.0% and equity beta of 1. The same WACC is applied for all cash generating units since differences in future uncertainty are reflected in the expected cash flows that form the basis for the calculation of future value in use. The observed level of risk expressed in terms of equity beta is also considered to be close to 1 for all segments in which the Group operates, indicating that the same WACC should apply to all cash generating units.

For the BEKK Consulting and Global Delivery cash generating units, value in use has been calculated using valuation multiples. For BEKK Consulting a multiple of 6x EBITDA in 2015 has been assumed, while for Global Delivery a multiple of 5x EBITDA in 2015 has been assumed.

A N NUA L ACCOU NTS GROUP10 8

PROPERTY, PLANT AND EQUIPMENT

NOK millionImprovements to

leased premises 1)Machinery/

fixtures 1) VehiclesIT

equipmentTotal

equipment

Acquisition cost at 1 January 2014 243.9 781.2 1.1 3 286.8 4 313.0

Reclassifications 3.8 -5.9 0.3 -9.2 -11.0 Additions - 68.1 1.0 211.9 280.9 Disposals -49.6 -145.3 -0.1 -1 684.5 -1 879.5 Translation differences 0.1 6.2 - 13.9 20.2 Acquisition cost at 31 December 2014 198.3 704.2 2.3 1 818.8 2 723.7 Additions 2.6 46.2 - 198.3 247.1 Disposals -4.9 -98.2 - -857.0 -960.0 Translation differences 0.2 16.2 0.2 18.4 34.9 Acquisition cost at 31 December 2015 196.1 668.4 2.5 1 178.6 2 045.7

Accumulated depreciation/write-down at 1 January 2014 176.4 521.7 0.7 2 643.4 3 342.3

Reclassifications 5.0 -8.7 0.1 -7.3 -10.9 Depreciations 17.1 62.6 0.2 266.8 346.7 Disposals -50.5 -141.8 -0.1 -1 602.3 -1 794.7 Translation differences 0.1 3.1 -0.1 1.6 4.8 Accumulated depreciation/write-down at 31 December 2014 148.1 437.0 0.9 1 302.2 1 888.1 Depreciations 11.6 87.7 0.4 231.2 330.9 Write-downs - - - 5.6 5.6 Disposals -4.8 -87.4 - -639.4 -731.6 Translation differences 0.1 11.0 -0.2 18.5 29.5 Accumulated depreciation/write-down at 31 December 2015 155.0 448.3 1.1 918.1 1 522.5

Depreciation rates 2) 10-20% 15-30% 20% 20-33%Depreciation method Linear Linear Linear Linear

Book valueAt 31 December 2015 41.1 220.2 1.5 260.4 523.2 At 31 December 2014 50.1 267.3 1.5 516.7 835.5

1) Fixtures and fittings in leased premises are depreciated over the residual period of the lease if this is shorter than the normal depreciation period.2) Depreciation rates stated are valid for both 2015 and 2014.

NOTE 13

ANNUAL ACCOUNTS G ROUP 109

INTERESTS IN SUBSIDIARIES, ASSOCIATED COMPANIES AND JOINT VENTURES

Shares in subsidiaries owned by parent company

Company Registered office Ownership share Voting share

EVRY Norge AS Oslo 100% 100%EVRY Nordic Operations AS Oslo 100% 100%EVRY Sweden Holding AB Stockholm, Sweden 100% 100%EVRY Card Services AS Mo i Rana 100% 100%EVRY Danmark A/S Viborg, Denmark 100% 100%EVRY Økonomitjenester AS Oslo 100% 100%

EVRY Nordic Operations AS merged with EVRY Norge AS as acquiring company with accounting effect from 1 January 2016.

In addition to subsidiaries owned by the parent company, the following material companies are consolidated in the Group accounts in accordance with the past equity method:

Company Registered office Ownership share Voting share

EVRY AB Stockholm, Sweden 100% 100%EVRY Consulting Group AB Stockholm, Sweden 100% 100%EVRY Card Services AB Stockholm, Sweden 100% 100%Infopulse Ukraina LLC Kiev, Ukraina 100% 100%EVRY India Private Limited Bangalore, India 100% 100%Span Systems Corporation Inc New Jersey, USA 100% 100%Eye-Share AS Stavanger 100% 100%Bekk Consulting AS Oslo 100% 100%EVRY Sweden AB Jönköping 100% 100%EVRY Lesswire Solutions AB Karlstad, Sweden 100% 100%EVRY Healthcare Systems AB Huskvarna, Sweden 100% 100%EVRY One Outsourcing Services Uppsala AB Uppsala, Sweden 100% 100%EVRY One Outsourcing Services Malmö AB Malmö, Sweden 100% 100%EVRY One Borås AB Borås, Sweden 100% 100%

Shares in associated companies:

Company Country Ownership shareBook value (000 NOK)

Gecko Informasjonssystemer AS Norway 34% 673

NOK thousand

Gecko Informasjons-

systemer AS InOne Europè AG

Book value at 1 January 2015 364 159The Group's share of this years profit 309 - Share liquidation dividend - -159Book value at 31 December 2015 673 -

InOne Europe AG was liquidated in 2015.

NOTE 14

A N NUA L ACCOU NTS GROUP11 0

Summarised financial information for associated companies 1 January to 31 December 2015 (000 NOK):

Company Assets Liabilities EquityOperating

revenueLoss for the year

Gecko Informasjonssystemer AS 14 383 9 927 4 456 23 845 -430

Shares in associated companies are recognized in the consolidated accounts in accordance with the equity method.

Interests in joint venturesThe Group has a 50% share in the joint venture Buypass AS. The other 50% share is held by Norsk Tipping AS. The investment is recognised in the consolidated accounts in accordance with the equity method.

Company Country Ownership share

Buypass AS Norway 50%

Summarised financial information - Buypass AS

NOK million 31.12.2015 31.12.2014

Current assets 177.7 279.1Non-current assets 14.9 16.6Current liabilities 78.1 155.3Non-current liabilities - 6.4Equity 114.5 134.0Group's carrying amount of the investment 57.2 67.0

NOK million 2015 2014

Operating revenue 191.5 262.9Operating costs 159.9 207.1Profit for the year 23.6 42.0Group's share of profit for the year 11.8 21.0

ANNUAL ACCOUNTS G ROUP 111

ACCOUNTS RECEIVABLE

Accounts receivable are recognised at their nominal value less a provision for losses.

NOK million 31.12.2015 31.12.2014

Gross outstanding 1 686.0 1 974.0 Provision for losses on receivables -12.4 -7.7 Net accounts receivable 1 673.5 1 966.3

Loss on receivables to profit and loss 10.7 2.6

Age distribution accounts receivable

Not due 31.12

Less than 30 days overdue

30 - 60 days overdue

61 - 90 days overdue 91 - 180 days

More than 180 days overdue

31 December 2015 80% 13% 2% 1% 1% 4%31 December 2014 74% 18% 2% 2% 4% 0%

OTHER RECEIVABLES

Other non-current receivables

NOK million 31.12.2015 31.12.2014

Implementation projects 29.2 192.1Other non-current receivables 23.1 14.6Total other non-current receivables 52.3 206.6

Other current receivables

NOK million 31.12.2015 31.12.2014

Deferred income 238.7 202.5Implementation projects 57.5 165.2Prepaid costs 368.7 462.6Advance income tax 135.6 96.1Other current receivables 179.2 48.8Total other current receivables 1 018.9 975.2

Implementation projects related to customer contracts which constitute an integral part of subsequent operations deliveries are capitalised on the balance sheet and allocated over the lifetime of the operations contract in question. Implementation projects are reported net in the statement of financial position. The proportion expected to be allocated over the following 12 months is classified as current, while the remaining amount is classified as non-current.

In 2015 implementation projects were written down by a total of NOK 168.5 million, of which NOK 58.0 million relates to the allocation classified as current, since the company will no longer be using the company’s Future Proof technology to deliver its basic infrastructure services.

NOTE 15

NOTE 16

A N NUA L ACCOU NTS GROUP11 2

BANK DEPOSITS/GUARANTEE LIABILITIES

EVRY has established a group bank account system whereby EVRY AS operates the group account, while other group companies are sub-account holders. The bank nets all balances and withdrawals to create a net position that represents the credit or debit balance between DNB Bank ASA and EVRY AS. The Group has issued a guarantee in respect of tax deductions from salaries due to the tax authorities. The guarantee amount was NOK 228.5 million as of 31 December 2015. Other bank guarantees amounted to NOK 151.3 million at 31 December 2015, including a guarantee of NOK 82.0 mill in favour of Norsk Tillitsmann Pensjon AS as collateral for employees’ accrued compensation rights arising from the transition from defined benefit to defined contribution pension arrangements. EVRY AS has issued parent company guarantees on behalf of its subsidiary companies amounting to NOK 487.0 million.

The Group has no restricted deposits as of 31 December 2015.

The Group has activity in Ukraine and the authorities have implemented restrictions for transfer of cash from the country, including dividend restrictions. By end of 2015 this cash position amounted to NOK 112.0 million.

SHARE CAPITAL, SHAREHOLDERS ETC.

The share capital of EVRY AS consists of:

NumberPar value

(NOK)Book value

(NOK)

Ordinary shares (fully paid) 1 January 2015 267 338 981 1.75 467 843 217Ordinary shares (fully paid) 31 December 2015 267 338 981 1.75 467 843 217

Holdings of own shares at nominal value 1 January 2015 303 080 1.75 530 390Purchase own shares - 1.75 - Sale own shares -303 080 1.75 -530 390Holdings of own shares at nominal value 31 December 2015 - -

Outstanding shares 31 December 2015 267 338 981

The company has only one class of shares. All shares in the company have equal voting rights and equal rights to dividends.

In accordance with the company’s Articles of Association, the number of shares is the same as the number of ordinary shares issued and fully paid.

The company had 604 shareholders at the end of 2015.

The largest shareholders as of 31 December 2015 were as follows:

Shareholder Interest

Lyngen Bidco AS 1) 88.0%UBS AG, London branc a/c client IPB 6.9%Credit Suisse Security (Europe) prime broker 2.0%Merrill Lynch Intern MLI FOR CLT OMNI NON 1.9%Credit Suisse Security special custody a/c 0.9%Total 99.8%

1) Lyngen Bidco AS is wholly-owned by Lyngen Midco AS, which is wholly-owned by Lyngen Topco AS. Lyngen Topco AS is controlled by private equity funds advised by Apax Partners LLP.

NOTE 17

NOTE 18

ANNUAL ACCOUNTS G ROUP 113

OTHER CURRENT LIABILITIES

NOK million 31.12.2015 31.12.2014

Accrued expenses 556.8 367.0 Pre-invoiced to customers 267.7 228.7 Provisions (note 20) 940.6 132.7 Current liabilities financial lease 3.0 3.0 Other current liabilities 41.6 30.3 Total other current liabilities 1 809.8 761.7

The increase in provisions was related to agreed transitions and customer transformations needed to convert to IBM’s platform technology (see note 2).

PROVISIONS

NOK millionOnerous

contractsRestruc-

turing PremisesOther

provisions Total

Book value 1 January 2014 30.1 54.1 25.9 6.1 116.1

Provisions made in the year - 120.1 - 1.1 121.2 Provisions applied in the year -4.3 -74.9 -19.4 -0.1 -98.8 Translation differences - 1.1 - 1.2 2.3 Book value 31 December 2014 25.8 100.4 6.5 8.2 140.9

Provisions made in the year - 719.2 100.2 809.3 1 628.7 Provisions applied in the year -6.0 -253.0 -6.2 -264.7 -529.8 Translation differences - 15.8 - 1.2 16.9 Book value 31 December 2015 19.8 582.3 100.5 554.0 1 256.7

Current 31 December 2015 19.8 504.1 29.7 386.9 940.6 Current 31 December 2014 25.8 100.4 6.5 - 132.7

Non-current 31 December 2015 - 78.2 70.8 167.1 316.1 Non-current 31 December 2014 - - - 8.2 8.2

Onerous contractsThe provision at 31 December 2015 relates to the Group’s DigOff solution. The Board of Directors of EVRY AS decided in 2012 that the DigOff solution would not be sold to additional customers, but that the company would continue to carry out the existing contracts for this solution. This decision was based on an overall evaluation of both risk and market prospects associated with additional sales of this solution.

Restructuring/other provisionsA thorough review of the Group’s cost base in 2015, concluded that EVRY’s costs were too high, and that they were out of line with EVRY’s market position and rate of growth. Therefore a range of cost reduction measures were implemented to strength-en the Group’s profitability and long-term competitiveness. These measures affect all business areas and are intended to reduce the Group’s cost base in 2016. They include realising the synergies arising from the reorganisation of the Norway busi-ness area. The Industries Norway and Regions Norway divisions have been combined to simplify their organisational structure and increase their efficiency. A new simplified operating model has been introduced in Sweden to reduce the number of legal units, harmonise operations, create synergies and increase efficiency. The Group has also reduced its sales and administrative costs by improving the efficiency of its staff and support functions at both the Group and divisional level.

NOTE 20

NOTE 19

A N NUA L ACCOU NTS GROUP11 4

In addition, significant provisions were made related to agreed transitions and customer transformations to convert to IBM’s platform technology (see note 2).

PremisesProvision is made for premises leases where the premises are not used or are sub-let at a loss.

LEASING CONTRACTS

Group as lessee – financial leasingThe Group has entered into a financial agreement regarding lease of data center at Gjøvik. The lease expires at 31 December 2022. The Group has an option to acquire the building of NOK 1 after the expire of the lease period.

Assets leased under financial leasing contracts are as follows:

NOK million 31.12.2015 31.12.2014

Premises (data center) 27.9 32.0Net book value 27.9 32.0

Future minimum financial lease payments:

NOK million 31.12.2015 31.12.2014

Up to 1 year 3.9 4.21 to 5 years 14.6 15.5After 5 years 9.9 13.5Total future minimum lease payments 28.4 33.1

Interest -3.2 -4.8Present value of future minimum lease payments 25.2 28.3

Of which:- current liabilities 3.0 3.0- non current liabilities 22.0 25.2

These leasing contracts do not impose any restrictions on the company’s dividend policy or financing arrangements.

Group as lessee – operational leasingThe Group has entered into a number of operational leasing contracts for software, IT equipment, office premises and other facilities. The majority of these leasing contracts include options to extend. There are no restrictions to the Group’s dividend or financing opportunities related to these leasing contracts.

NOTE 21

ANNUAL ACCOUNTS G ROUP 115

Leasing costs are made up as follows:

NOK million 2015 2014

Office premises 461.7 434.8Software 1 105.9 979.5IT equipment, vehicles and other 417.0 345.2Network capacity 286.1 307.4Total leasing costs 2 270.7 2 067.0

The minimum future operational lease payments in respect of contracts with no cancellation option fall due as follows:

NOK million 31.12.2015 31.12.2014

Up to 1 year 817.9 1 191.21 to 5 years 1 596.9 1 737.2After 5 years 1 263.9 410.3Total future minimum lease payments 3 678.7 3 338.7

Significant lease agreements

Premises lease - Skøyen, OsloThe lease expires in 2019 and the rent is adjusted annually in line with CPI. Rental payments are based on total m2. The tenant is responsible for maintaining the interior of the premises at the original standard. Total area of premises is 41 000 m2, whereas 21 000 m2 is subleased.

Premises lease - Fornebu, BærumThe lease expires in 2023 and the rent is adjusted annually in line with CPI. Rental payments are based on total m2. The tenant is responsible for maintaining the interior of the premises at the original standard. Total area of premises is 27 000 m2.

Premises lease - Solna, StockholmThe lease expires in 2027 and the rent is adjusted annually in line with CPI. Rental payments are based on total m2. The tenant is responsible for maintaining the interior of the premises at the original standard. Total area of premises is 9 500 m2. Premises lease - Sandslimarka, BergenThe lease expires in 2018 and the rent is adjusted annually in line with CPI. Rental payments are based on total m2. The tenant is responsible for maintaining the interior of the premises at the original standard. Total area of premises is 11 000 m2. Premises lease - Sluppen, TrondheimThe lease expires in 2023 and the rent is adjusted annually in line with CPI. Rental payments are based on total m2. The tenant is responsible for maintaining the interior of the premises at the original standard. Total area of premises is 6 000 m2.

Premises lease - Maskinveien, StavangerThe lease expires in 2020 and the rent is adjusted annually in line with CPI. Rental payments are based on total m2. The tenant is responsible for maintaining the interior of the premises at the original standard. Total area of premises is 5 900 m2.

Premises Data center - FetThe lease expires in 2035 and the rent is adjusted annually in line with CPI. Rental payments are based on total m2. The tenant is responsible for maintaining the interior of the premises at the original standard. Total area of premises is 4 200 m2.

A N NUA L ACCOU NTS GROUP11 6

CLASSIFICATION OF FINANCIAL INSTRUMENTS AND DETERMINATION OF FAIR VALUE

Fair value hierarchyFinancial instruments that are valued at fair value in the statement of financial position are grouped on the basis of the following fair value hierarchy, which applies three levels/groups for financial instruments. The levels/groups reflect the information used for the determination of fair value.

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.Level 2: Instruments for which observable information is available, but for which there is no active market.Level 3: Instruments for which there is no observable market data and the determination of fair value accordingly uses

company specific/subjective information.

As of 31 December 2015:

NOK million

Fair value level

Fair value through OCI

Fair value through

profit and loss

Loans and Receivables

Available for sale

Other financial liabilities

Total book value

Fair value

AssetsOther financial assets 2 196.1 - - - - 196.1 196.1 Non-current interest bearing receivables - - 1.2 - - 1.2 1.2 Other non current receivables - - 51.1 - - 51.1 51.1 Accounts receivable - - 1 673.5 - - 1 673.5 1 673.5 Other current receivables - - 1 018.9 - - 1 018.9 1 018.9 Bank deposits - - 900.2 - - 900.2 900.2 Total assets 196.1 - 4 545.3 - - 3 841.1 3 841.1

Liabilities

Non-current interest bearing liabilities - - - - 4 779.6 4 779.6 4 779.6 Non-current non-interest bearing lialiabilities 2 90.1 - - - - 90.1 90.1 Accounts payable - - - - 577.3 577.3 577.3 Deductions and duties payable - - - - 1 053.3 1 053.3 1 053.3 Other current liabilities - - - - 1 809.8 1 809.8 1 809.8 Total liabilities 90.1 - - - 8 220.1 8 310.2 8 310.2

During the reporting period 1 January 2015 to 31 December 2015, there were no transfers between the levels in the fair value hierarchy.

NOTE 22

ANNUAL ACCOUNTS G ROUP 117

As of 31 December 2014:

NOK million

Fair value level

Fair value through OCI

Fair value through

profit and loss

Loans and Receivables

Available for sale

Other financial liabilities

Total book value

Fair value

AssetsNon-current interest bearing receivables - - 1.6 - - 1.6 1.6 Other non-current receivables - - 204.9 - - 204.9 204.9 Accounts receivable - - 1 966.3 - - 1 966.3 1 966.3 Other current receivables - - 975.2 - - 975.2 975.2 Bank deposits - - 615.6 - - 615.6 615.6 Total assets - - 3 763.6 - - 3 763.6 3 763.6

Liabilities

Non-current interest bearing liabilities - - - - 3 181.3 3 181.3 3 181.3 Non-current non-interest bearing liabilities 2 74.8 - - 5.8 80.6 80.6 Accounts payable - - - - 885.1 885.1 885.1 Deductions and duties payable - - - - 1 187.1 1 187.1 1 187.1 Other current liabilities - - - - 761.7 761.7 761.7 Total liabilities 74.8 - - - 6 021.1 6 095.9 6 095.9

During the reporting period 1 January 2014 to 31 December 2014, there were no transfers between the levels in the fair value hierarchy.

A N NUA L ACCOU NTS GROUP11 8

DISCONTINUED OPERATIONS

It was at the end of December 2014 decided that the SAP operations of EVRY Denmark A/S would undergo controlled closure. Because of this, the operating result for the company has been stated separately in accordance with IFRS 5 and is shown as a separate line entry in the income statement: “Profit/loss after tax for the year from discontinued operations”. The operation is similarly no longer included as part of the EVRY Norway segment.

The result for EVRY Danmark A/S are presented below:

NOK million 2015 2014

Revenues 11.5 86.1 Expenses 26.0 124.2 Operating profit/-loss -14.5 -38.1 Net financial items 38.9 -1.4 Profit/-loss before tax from discontinued operations 30.4 -42.3

NOK million 31.12.2015 31.12.2014

Non-current assets - 2.5 Current assets - 19.9 Total assets - 22.4

Equity -1.8 -41.3 Non-current liabilities - - Current liabilities 1.8 63.7Total equity and liabilities - 22.4

Cash flow

NOK million 2015 2014

Operating -16.8 -18.0 Investments 5.5 - Financing 39.6 11.2 Net cash flow 28.3 -6.8

NOTE 23

ANNUAL ACCOUNTS G ROUP 119

RELATED PARTIES

Lyngen Bidco AS controlled 88% of the shares in EVRY AS as of 31 December 2015. Lyngen Bidco AS is indirectly controlled by private equity funds advised by Apax Partner LLP. Until 16 March 2015, Posten Norge AS and Telenor Business Partner Invest AS owned 40.0% and 30.2% respectively of the shares in EVRY AS.

In the period that the Group was controlled by Posten and Telenor, the Group was party to agreements for the sale of ser-vices to a number of companies in both the Posten group and the Telenor group. Services delivered by the Group to com-panies in the Posten group and to companies in the Telenor group relate mainly to operating services for business critical IT systems, including mainframe, UNIX, networks solutions and office solutions platforms. Services purchased by the Group from companies in the Posten group mainly relate to freight and distribution. Services purchased by the EVRY group from companies in the Telenor group mainly relate to communication services, network services and telephony. All transactions with the Posten group and with the Telenor group have been carried out on normal arm’s length commercial terms. There are no guarantees for sales to any of the companies in either the Posten group or the Telenor group.

EVRY’s total sales revenue from companies in the Posten group and from companies in the Telenor group in 2014 amount-ed to NOK 543.6 million and NOK 436.0 million respectively, while total purchases from companies in each of the groups amounted to NOK 173.2 million and NOK 421.5 million respectively. During the period EVRY was owned by Posten and Telenor in 2015, the Group had proportionally equivalent sales revenue and costs in relation to companies in the Posten and Telenor groups.

The Group has not had any significant transactions with Lyngen Bidco or any other indirect shareholders in the ownership period.

For information about remuneration to executive management and the board of directors, see note 6.

DISPUTES AND OTHER LEGAL MATTERS

EVRY is involved from time to time in a number of disputes/legal proceedings in connection with deliveries of products and the interpretation of contracts. While the outcome of these matters is uncertain, management is of the opinion that, on the basis of the information currently available, these matters will be resolved without causing any material negative impact on the Group’s financial position. Where the Group considers it likely that a dispute will result in a payment to a third party, the appropriate provision is made in the accounts on the basis of management’s best estimate.

EVENTS AFTER BALANCE SHEET DATE

There have been no events after 31 December that have had a material effect on the financial statement for 2015.

NOTE 24

NOTE 25

NOTE 26

A N NUA L ACCOU NTS EVRY AS12 0

EVRY ASStatement of comprehensive income

1 January - 31 December

NOK million Note 2015 2014

Operating revenue - -

Salaries and personnel costs 2,3 1.4 4.5 Other operating costs 5 103.9 58.7 Total operating costs 105.3 63.2

Operating profit/-loss -105.3 -63.2

Income from investment in subsidiaries 4 151.3 138.5 Other financial income 6 365.6 481.4 Financial expense 6 658.1 564.7 Net financial items -141.2 55.3

Profit/-loss before tax -246.5 -8.0

Taxes 7 -53.4 75.2 Profit/-loss for the year -193.2 -83.2

Comprehensive incomeItems which will not be reclassified over profit and loss (after tax):Actuarial gains/-losses on defined benefit pension plans -0.7 -0.8

Items which may be reclassified over profit and loss in subsequent periods (after tax):Cash flow hedges 138.2 -40.5 Total comprehensive income 137.6 -41.3

Total profit/-loss for the year -55.6 -124.5

ANNUAL ACCOUNTS EV RY AS 121

EVRY ASStatement of financial position

As of 31 December

NOK million Note 31.12.2015 31.12.2014

Non-current assetsShares in subsidiaries 9 5 965.7 6 004.7 Other non-current shareholdings 0.4 0.4 Other financial assets 12 196.1 -Pension assets 3 - 0.2 Non-current interest bearing receivables 10 1 401.9 2 258.3 Total financial non-current assets 7 564.1 8 263.7 Total non-current assets 7 564.1 8 263.7

Current assets Other current receivables 10 172.6 139.6 Total current assets 172.6 139.6 Total assets 7 736.7 8 403.3

Equity Share capital 11 467.8 467.8 Own shares 11 - -0.5 Paid-in other equity 2 755.3 3 197.4 Total paid-in equity 3 223.1 3 664.7 Other equity - 612.8 Total equity 3 223.1 4 277.4

Liabilities Non-current interest bearing liabilities 10,12 3 404.0 3 151.3 Non-current non-interest bearing liailities 10 91.1 81.9 Deferred tax liabilities 7 16.1 20.7 Total non-current liabilities 3 511.2 3 253.9

Accounts payable 9.2 19.5 Deductions and duties payable 0.1 -2.9 Bank overdraft 8 892.7 454.9 Other current liabilities 10 100.4 400.5 Total current liabilities 1 002.4 871.9 Total liabilities 4 609.6 4 125.8 Total liabilities and equity 7 736.7 8 403.3

Salim NathooChairman of the Board

Ellen de Kreij Rohan Haldea Louise Sondergaard Göran Lindahl Francisco Menjibar

Jan Dahlström Ingrid Lund Eirik Bornø Ola Hugo Jordhøy Björn IvrothCEO

London, UK, 21 April 2016, Board of Directors of EVRY AS

A N NUA L ACCOU NTS EVRY AS12 2

EVRY ASStatement of cash flow

1 January - 31 December

NOK million 2015 2014

Cash from/to operations: Profit/-loss before tax -246.5 -8.0Share of profit/-loss in subsidiaries/associated companies -151.3 -138.5Tax paid in the period - 2.8Write-down of shares in subsidiaries - 254.6Interest income/-expenses 292.5 -171.3Paid interests -144.6 -56.8Difference between pension cost and payments - -0.2Change in accounts payable -10.3 18.8Change in other accruals -44.4 58.8Net cash flow from operations -304.7 -39.7

Cash from/to investments: Investment in group companies - -1 048.0Net cash flow from investments - -1 048.0

Cash from/to financing: New borrowing (short and long-term) 3 450.3 400.0Borrowings repaid -2 376.7 -760.5Dividends paid -1 003.6 -106.8Purchase/sale of own shares 4.8 - Group contribution received/paid -170.2 46.9Net cash flow from financing -95.3 -420.4

Net change in liquid assets over the year -400.0 -1 508.2Currency movements in liquid assets -37.8 277.0Bank deposits at 1.1. -454.9 776.3Bank deposits at 31.12. -892.7 -454.9

ANNUAL ACCOUNTS EV RY AS 123

EVRY ASStatement of changes in equity

1 January - 31 December

NOK millionShare

capitalOwn

sharesPaid-in

other equityOther equity

Total equity

Equity at 1 January 2014 467.8 -0.7 3 196.7 1 218.8 4 882.7

Purchase of own shares 0.1 0.7 0.5 1.3Dividend -106.8 -106.8Merger (Group continuity) -375.3 -375.3Comprehensive income -41.3 -41.3Profit/-loss for the year 2014 -83.2 -83.2Equity at 31 December 2014 467.8 -0.5 3 197.4 612.8 4 277.4

Purchase of own shares 0.5 4.3 - 4.8Dividend -1 003.6 -1 003.6Comprehensive income 137.6 137.6Profit/-loss for the year 2015 -193.2 -193.2Allocation of equity -446.4 446.4 - Equity at 31 December 2015 467.8 - 2 755.3 - 3 223.1

A N NUA L ACCOU NTS EVRY AS12 412 4

ACCOUNTING PRINCIPLES

The accounts of EVRY AS are prepared in accordance with the regulation in the Norwegian Accounting Act that allow simplified application of International Financial Reporting Standards, cf. Regulation no 0057 of 21 January 2008. Thismeans that the accounting principles are the same as in the group accounts, while the disclosures are in accordance with the Norwegian Accounting Act.

Shares in subsidiaries are recognised in the company’s accounts in accordance with the cost method. Dividends and other profit distributions accrued for in these companies are recognised as financial income in the period to the extent that they result from profits earned during the period of ownership.

For information about accounting principles, see group accounts note 1.

SALARIES AND PERSONNEL COSTS

NOK million 2015 2014

Salaries and remuneration to Board of Directors 0.4 4.0Social security tax 0.1 0.5Charged from other companies 0.9 - Total salaries and personnel costs 1.4 4.5

The company did not have any employees in 2015 nor in 2014.

See note 6 - Group for information about remuneration to executive management and Board of Directors.

PENSIONS

The company has no employees. The company had a closed defined benefit pension scheme at the end of 2014 that consisted of 13 retired members. This pension scheme is transferred to the subsidiary EVRY Norge AS in 2015.

Pension liability

NOK million 2015 2014

Gross pension liability - 22.9Plan assets - 23.1Net pension liability - 0.2

Pension assets in the balance sheet - 0.2Pension liabilities in the balance sheet - -

The assumptions used for pension calculations follow the guidelines issued by the Norwegian Accounting Standards Board (NRS) as of 31 December.

EVRY ASNotes to Financial Accounts

NOTE 1

NOTE 2

NOTE 3

ANNUAL ACCOUNTS EV RY AS 125125

The plan assets as of 31 December were invested as follows:

Investment category

2014

Bonds 55%Equity securities 36%Properties 7%Other 2%Total 100%

INCOME FROM INVESTMENT IN SUBSIDIARIES

Income from investment in subsidiaries in both 2015 and 2014 relates to received group contribution and dividends from equity accumulated during the period of ownership by the parent company.

OTHER OPERATING COSTS

Other operating costs comprise:

NOK million 2015 2014

Consultant costs 101.9 57.3Other operating costs 2.0 1.5Total other operating costs 103.9 58.7

Auditor’s remunerationThe following table shows remuneration to the group’s auditor, Ernst & Young AS, in respect of audit services delivered,including the amounts invoiced in respect of audit-related and tax-related services. The amounts shown are exclusive of value added tax.

NOK million 2015 2014

Audit fee 1.616 1.067 Other audit related services 0.746 0.812 Assurance services 4.001 - Tax related services 0.582 0.086 Total auditor's remuneration 6.944 1.965

Assurance services include attestation services related to ISAE 3402 and SAS 70. These expenses are mainly reinvoiced by the company.

NOTE 4

NOTE 5

A N NUA L ACCOU NTS EVRY AS12 612 6

FINANCIAL ITEMS

NOK million 2015 2014

Intra-group interest income 78.7 114.9External interest income 13.6 30.9Currency gains 273.3 335.7Total other financial income 365.6 481.4

Intra-group interest expense 13.9 31.9External interest expenses 231.3 163.3Currency losses 297.6 58.6Write-down of shares in subsidiaries 53.0 254.6Other 62.2 56.4Total other financial expenses 658.1 564.7

TAXES

Deferred tax is calculated on the basis of the differences which exists at year-end between accounting and taxation values.

Deferred tax arises in respect of the following differences as of 31 December:

NOK million 31.12.2015 31.12.2014

Provisions -6.5 -37.1Pension liabilities - 0.2Financial instruments 111.5 -74.8Non-current receivables/loans 32.7 188.4Losses carried forward -73.4 - Gross timing differences 64.3 76.7

Deferred tax/(deferred tax asset) 16.1 20.7

Calculation of tax base for the yearProfit/-loss before tax -246.5 -8.0Permanent differences 45.4 297.1Change in timing differences to profit and loss 127.8 19.6Losses carried forward 73.4 -Group contribution given - -308.7Basis for tax payable - -

NOTE 6

NOTE 7

ANNUAL ACCOUNTS EV RY AS 127127

NOK million 2015 2014

Changes in deferred taxChange in deferred tax to profit and loss -53.4 -5.3Tax on equity transactions 48.7 -15.3Change in deferred tax -4.6 -20.6

Tax cost for the year comprisesTax payable - 83.3Change in deferred tax -53.4 -5.3Change in tax payable previous years - -2.8Total tax cost -53.4 75.2

Effect of permanent differences27% of profit/-loss before tax -66.6 -2.2Tax rate change 0.9 -Expenses not deductible 12.2 80.2Change in tax payable previous years - -2.8Tax for the year -53.4 75.2

GUARANTEE LIABILITIES

EVRY AS has issued a guarantee of NOK 350.0 million for borrowings by subsidiaries as part of the group cash management account arrangements.

Other bank guarantees amounted to NOK 27.5 million.

EVRY AS has issued parent company guarantees on behalf of its subsidiary companies amounting to NOK 487.0 million.

Guarantees issued by Posten Norge AS on behalf of EVRY AS or by subsidiary companies amounted to NOK 160.0 million as of 31 December 2015.

See note 17-Group for information about the group bank system.

NOTE 8

A N NUA L ACCOU NTS EVRY AS12 812 8

SHARES IN SUBSIDIARIES

Shares in subsidiaries are recognised in accordance with the cost method.

Registered office Share % Voting %Book value

(NOK million)

EVRY Norge AS Oslo 100% 100% 4 506.5EVRY Sweden Holding AB Stockholm, Sweden 100% 100% 111.5EVRY Card Services AS Mo i Rana 100% 100% 245.3EVRY Nordic Operations AS Oslo 100% 100% 1 101.3EVRY Danmark A/S Viborg, Denmark 100% 100% -EVRY Økonomitjenester AS Oslo 100% 100% 1.1Total 5 965.7

INTRA-GROUP RECEIVABLES AND LIABILITIES

NOK million 31.12.2015 31.12.2014

ReceivablesNon-current interest bearing receivables 1 401.9 2 258.3Current non-interest bearing receivables 0.2 -Group contribution 137.2 138.5Total receivables 1 539.3 2 396.9

LiabilitiesAccounts payable 1.1 - Other current non-interest bearing liabilities 42.3 15.3Group contribution - 308.7Total liabilities 43.5 324.0

Non-current interest bearing receivables are due in 2019.

SHARE CAPITAL, SHAREHOLDERS ETC.

See note 18 - Group for information about share capital, shareholders etc.

NOTE 9

NOTE 10

NOTE 11

ANNUAL ACCOUNTS EV RY AS 129

FINANCIAL INSTRUMENTS

NOK million 31.12.2015 31.12.2014

Liabilities to credit institutions 3 500.0 3 151.3Arrangement fee financing -96.0 -Total non-current interest bearing liabilities 3 404.0 3 151.3

Parts of the financing agreement is debt in EUR, in total EUR 338.0 million. The company has entered into EURNOK and EURSEK cross currency swaps on this EUR debt to eliminated the EUR exposure. Changes in the market value of hedging instruments are recognised as part of comprehensive income. The market values of these hedging instruments were NOK 196.1 million at year end 2015.

RELATED PARTIES

Lyngen Bidco AS controlled 88% of the shares in EVRY AS as of 31 December 2015. Lyngen Bidco AS is indirectly controlled by private equity funds advised by Apax Partner LLP. Until 16 March 2015, Posten Norge AS and Telenor Business Partner Invest AS owned 40.0% and 30.2% respectively of the shares in EVRY AS.

For information about remuneration to executive management and board of directors, see note 6 - Group.

See note 24 - Group related parties for further information.

NOTE 13

NOTE 12

13 0

Statsautoriserte revisorer Ernst & Young AS Dronning Eufemias gate 6, NO-0191 Oslo Oslo Atrium, P.O.Box 20, NO-0051 Oslo

Foretaksregisteret: NO 976 389 387 MVA Tlf: +47 24 00 24 00 Fax: +47 24 00 24 01 www.ey.no Medlemmer av den norske revisorforening

To the Annual Shareholders' Meeting of EVRY AS

AUDITOR’S REPORT

Report on the financial statements

We have audited the accompanying financial statements of EVRY AS, comprising the financial statements for the Parent Company and the Group. The financial statements of the Parent Company and the Group comprise the statement of comprehensive income, the financial position as of 31 December 2015, cash flows and changes in equity for the year then ended as well as a summary of significant accounting policies and other explanatory information.

The Board of Directors' and Chief Executive Officer's responsibility for the financial statements

The Board of Directors and Chief Executive Officer are responsible for the preparation and fair presentation of these financial statements in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway for the financial statements of the Parent Company and the International Financial Reporting Standards as adopted by the EU for the financial statements of the Group, and for such internal control as the Board of Directors and Chief Executive Officer determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements for the Parent Company and the Group.

AUDITOR’S REPORT

Auditor’s report

131

Opinion on the financial statements of the Parent Company

In our opinion, the financial statements of EVRY AS have been prepared in accordance with laws and regulations and present fairly, in all material respects, the financial position of the Company as of 31 December 2015 and its financial performance and cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway.

Opinion on the financial statements of the Group

In our opinion, the financial statements of the Group have been prepared in accordance with laws and regulations and present fairly, in all material respects, the financial position of the Group as of 31 December 2015 and its financial performance and cash flows for the year then ended in accordance with the International Financial Reporting Standards as adopted by the EU.

Report on other legal and regulatory requirements

Opinion on the Board of Directors’ report and on the statements on corporate governance and corporate social responsibility

Based on our audit of the financial statements as described above, it is our opinion that the information presented in the Directors’ report and in the statements on corporate governance and corporate social responsibility concerning the financial statements, the going concern assumption is consistent with the financial statements and complies with the law and regulations.

Opinion on registration and documentation

Based on our audit of the financial statements as described above, and control procedures we have considered necessary in accordance with the International Standard on Assurance Engagements (ISAE) 3000, «Assurance Engagements Other than Audits or Reviews of Historical Financial Information», it is our opinion that the Board of Directors and Chief Executive Officer have fulfilled their duty to ensure that the Company's accounting information is properly recorded and documented as required by law and generally accepted bookkeeping practice in Norway.

Oslo, 21. April 2016 ERNST & YOUNG AS Asbjørn Ler State Authorised Public Accountant (Norway) (This translation from Norwegian has been made for information purposes only.)

AUDITOR’S R EPORT

ABOUT PRODUCTION Project and text: EVRY and WergelandApenes Design: Mission Layout and production: Artbox Photo: CF-Wesenberg, John Angerson, GettyImages and JohnérPrint: Rolf Ottesen

Annual report 2015

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