Nobina wins traffic contract in Oslo worth NOK 1.5 billion

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Nobina wins one of Norway's largest traffic tenders ever and takes over the bus traffic in Oslo West with approximately 78 buses and 230 employees. The contract is valid for seven years, is worth around NOK 1.5 billion increasing Nobina’s Norwegian contract portfolio by approximately 30 percent. The contract has an option of three extension years. The new agreement also involves Oslo’s largest investment ever in biogas-powered buses for regular traffic. Traffic start takes place in October 2012.

The value of the new contract amounts to approximately NOK 209 million in annual revenue over a period of seven years, with traffic starting on October 7th, 2012. The contract has an option of three extension years. The compensation structure is a combination of fixed price and a bonus based on customer satisfaction. The bonus is limited to a maximum of eight per cent of the contract value.

– We are pleased with the fact that we continue to gain market shares in Norway through contracts with a bonus structure. It empowers us to improve the efficiency of our Norwegian operations – and to encourage more people to travel together, says Ragnar Norbäck, President and CEO of Nobina AB.

The traffic in western Oslo is characterized by a great deal of job commuting, which means tough requirements when it comes to bus capacity and customer service. Nobina’s ambition is to increase traveling during the course of the contract, as several new residential areas are planned in the region.

– We are very proud to have been chosen to develop the daily travel in one of Norway's most important and growing traffic areas. This agreement has a great symbolic value as the Oslo traffic has been a significant part of Nobina’s historical growth in Norway and now we are back, says Ragnar Norbäck.

The agreement also involves Oslo’s largest investment ever in biogas-powered buses used in regular traffic. The contract covers a substantial renewal of the bus fleet with a strong environmental profile and greater customer comfort. 51 out of the 78 new buses will be powered by biogas and the rest will be run on diesel. Moreover the buses will offer AC and higher accessibility. Nobina will therefore participate in establishing entirely new infrastructure for reliable gas supply and a convenient refuelling system.

For more information please contact:

Ragnar Norbäck, President and CEO Nobina AB, telephone 08-410 650 00
Ingrid Håkanson, Investor Relations Manager Nobina AB, telephone 08-410 650 51

The Nobina group is the largest bus passenger transport company in the Nordic region. The operations include contractual regional traffic in Sweden, Denmark, Norway and Finland as well as independently operated interregional traffic through Swebus. The Nobina group has annual sales in excess of SEK 6 billion, operates 3,500 buses and, with more than 260 million passenger journeys per year, is one of the major passenger transport companies in northern Europe. For more information, please visit www.nobina.com.

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