The Norwegian Defence Estates Agency (NDEA) The defence sector’s property expert 2014

On commission from the defence sector  The NDEA is a professional, public sector property operator that builds, runs and sells property on behalf of the Norwegian Armed Forces

 The Ministry of Defence owns  The NDEA administrates  The Armed Forces lease Defence sector properties

THE ARMED FORCES USE, PRIORITISE AND MAKE DEMANDS 1 THE MINISTRY OF DEFENCE OWNS AND MAKES DECISIONS THE NDEA ADMINISTRATES, DELIVERS AND LOOKS AFTER ADMINISTRATION MODEL 2 3

THE ARMED FORCES USE, PRIORITISE AND MAKE DEMANDS 1 THE MINISTRY OF DEFENCE OWNS AND MAKES DECISIONS THE NDEA ADMINISTRATES, DELIVERS AND LOOKS AFTER ADMINISTRATION MODEL 2 3 RENT FDVU THE NDEA administrates, operates, maintains and develops the defence sector property, buildings and installations. THE FDVU SHARE of the rent is what the NDEA has at its disposal to take care of the properties it administrates and leases to the Armed Forces. THE CAPITAL ELEMENT is used for renovation, re- acquisition or rehabilitation of property, buildings and installations (EBA). UTILITIES AND CLEANING UTILITIES cover deliveries of services such as drains, water and refuse collection, which form part of the leasing relationship CLEANING is a service that must be ordered separately, and which is only supplied by the NDEA. SUPPLEMENTARY SERVICES THESE ARE SERVICES the Armed Forces themselves are responsible for ordering. The services can be ordered from the NDEA or external suppliers and include lawn mowing and snow-clearing. CONSULTANCY THE NDEA supplies consultancy services in areas such as securing buildings and installations, environmental issues, protecting cultural memorials and the sale, clearing and environmental clearing of property, buildings and installations (EBA). INVESTMENT INVESTMENT FUNDS are used for new property, buildings and installations (EBA) and renovations. Together, the capital element, sale of discarded property and grants from the Norwegian Parliament make up the NDEA’s total investment framework. DISPOSAL ALL PROPERTIES that the Armed Forces state they no longer need are disposed of, i.e. environmentally cleared, demolished or sold. Revenues from sales contribute to improving the operative capacity of the Armed Forces. SERVICES AND DELIVERIES ALL ARMED FORCES PROPERTIES have agreements concerning the responsibilities and expenses allocated to the NDEA and the Armed Forces, respectively. The agreements relate to rent, utilities, suppliers, cleaning and supplementary services. The Armed Forces also buy consultancy services from the NDEA.

The biggest property administrator in Norway  4.1 million square metres of buildings administrated  Divided between 12,633 buildings and installations  143,144 square metres were disposed of in 2013  We generate an annual turnover of NOK 6.6 billion  We generate 1,523 FTEs

The NDEA in figures KEY FIGURES Basic property administrated (decares) Area of buildings administrated (m 2 ) Area disposed of (m 2 ) Armed Forces’ property sold for (MNOK) No. buildings No. buildings & installations Investment activity in own buildings and installations (MNOK) Operating profit transferred to the Ministry of Defence, excl. sale of property (MNOK) Total FTEs

Value creation for the defence sector BUILDINGS DISPOSED OF 2.75 million square metres of SUPERFLUOUS BUILDINGS disposed of since SALES REVENUES 2001– billion kroner (current prices) IN SALES REVENUES generated for the Armed Forces since The funds have been allocated to prioritised Armed Forces projects. SAVINGS ON ENERGY COSTS 2006– million kroner SAVED on energy costs since Of this, NOK 152 million is savings to date from the Energy Management Programme, that is intended to save NOK 200 million by MORE EFFICIENT OPERATION 3.3 billion kroner SAVED through improving the efficiency of operations in the period 2002–2013. A total of NOK 406 million was saved in REDUCED RENT EXPENSES 4.0 billion kroner REDUCTION IN RENT EXPENSES for the Armed Forces since 2003 by cutting the amount of leased space from 5.1 to 3.3 million square metres. TOTAL COST REDUCTION 11.0 billion kroner GENERATED FOR THE ARMED FORCES since 2001 through disposals, reduction in square metres, energy efficiency and improved operational efficiency.

ORGANISATION PORTFOLIO MANAGEMENT CONSTRUCTION & DEVELOPMENT AIR FORCE BASEPROPERTY & FACILITY MANAGEMENT PROPERTY DISPOSAL AND SALES NATIONAL FORTIFICATION HERITAGE SPECIALIST ADVISORY SHARED SERVICES BUSINESS AREAS CEO/GROUP MANAGEMENT STRATEGY AND DEVELOPMENT | FINANCE | COMMUNICATION | INTERNAL CONTROL FTEs in total

PORTFOLIO MANAGEMENT Responsible for the NDEA’s strategic property portfolio BUSINESS AREAS CONSTRUCTION & DEVELOPMENT Responsible for the planning and construction of new buildings and facilities for the Armed Forces. AIR FORCE BASE Responsible for all planning and construction of the main air force fighter base on Ørland and for the advanced base at Evenes in connection with the Armed Forces’ purchase of F-35 aircraft. PROPERTY & FACILITY MANAGEMENT Responsible for all assignments related to the renting out, management, maintenance, cleaning and development of customer property, buildings and installations. PROPERTY DISPOSAL AND SALES Responsible for the sale, clearing and environmental clearing of Armed Forces property in accordance with the objectives and guidelines of the Norwegian Parliament. This department also provides consultancy services to other public sector bodies looking to dispose of property. NATIONAL FORTIFICATION HERITAGE Responsible for managing, caring for and enhancing fortifications that the Armed Forces are no longer to use. SPECIALIST ADVISORY This business area is a leading consultancy environment with expertise in the protection and securing of buildings, research and development, environmental challenges specific to the Armed Forces, and legal advice SHARED SERVICES Delivers administrative support services to all internal departments in the NDEA.

 Strategic portfolio management  Holistic deliveries  Competitiveness  Management and skills development  Responsible administration in line with the State framework and regulations  Generate confidence through openness and orderliness ADMINISTRATION BUSINESS Two key pillars

Our strategy – primary goals and measures STRATEGIC PORTFOLIO MANAGEMENT HOLISTIC DELIVERIES COMPETITIVENESS MANAGEMENT AND SKILLS DEVELOPMENT 1234

BUILDING DEFENCE CAPACITY EVERY DAY

 Our vision is to use our unique position and skills to develop the property solutions of the future.  The NDEA values are: focus, mutual confidence and respect, innovation and holistic diversity. A visionary enterprise

Our staff are our most important asset  In-demand skills  1,692 staff at 31 December 2013  40 per cent women overall  33 per cent women in senior management  Focus on skills development through specially designed programmes 14.3% CONSULTANTS 21.2% ENGINEERS, ARCHITECTS AND PROJECT MANAGERS 0.9% MILITARY PERSONNEL 9.5% ADMINISTRATION 7.2% MANAGERS 46.8% OPERATION AND CLEANING STAFF

Key initiatives for the future ORGANISATION  Hosting  Value creation  Reputation  Deliveries  Fighter air base  Residences & quarters  Customer communication PROJECTS

Working hard for the environment and society  NOK 152 million reduction in costs following energy efficiency improvements  New biofuel facility in Finnmark cuts carbon emissions by 2,240 tonnes  Phase 2 of the Energy Management Programme cut power consumption by 22 GWh, and helped reduce total carbon emissions by 35.8 per cent in relation to 2011  Approval for energy-neutral building at the Haakonsvern base STATUS 2013

 The seabed at Ramsund has been cleaned to remove environmental toxins  Several shooting ranges and exercise facilities have been cleaned, including Lørbern.  Bullet catchers reduce costs OTHER ENVIRONMENTAL PROJECTS

Supplementary pages

 The NDEA – The biggest property administrator in Norway THE PORTFOLIO

Buildings per category TOTAL HOLDINGS OF BUILDINGS AMOUNT TO 4.1 MILLION SQUARE METRES, DISTRIBUTED AS FOLLOWS: Administration and staff facilities 13.8% Welfare and leisure facilities 3.2% Camps and mess halls 17.7% Residences 7.6% Warehouse and maintenance facilities 28.4% Base facilities 1.4% Education and exercise facilities 5.6% Combat and defence facilities 18.7% Other 3.5%

Development in the property portfolio 1992–2013

Building holdings per county

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