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Midroc EuropeAnnual Review 2006
M I D R O C E U R O P E2
Midroc Europe is the marketing concept that
binds European Midroc companies and services
together, offering the market undertakings with
financial and technical strength combined with
highly competent human resources along a broad
line of services.
Midroc Europe offers a wide range of mana-
gement and contracting services to the civil con-
struction and industrial market. Services can be
delivered individually, or seamlessly integrated as
multi-discipline packages for new build, refur-
bishment projects, repair or maintenance con-
tracts. Midroc also develops land and properties
and also manages commercial properties and
housing.
Having its operations basis in Sweden,
Midroc Europe is also represented in Germany,
United Kingdom, France and Poland.
The relevant Annual Reports 2006 can be downloaded from our website www.midroc.se or ordered from: Midroc Support AB, P.O. Box 2053, SE-174 02 Sundbyberg,Sweden. Telephone orders: +46 8 706 74 50, Fax orders: +46 8 733 19 45, e-mail orders: [email protected]
3M I D R O C E U R O P E
MIDROC EUROPE 4
REVIEW 2006 6
CONTRACTING 8
CONSULTING 12
PROPERTY DEVELOPMENT 14
MIDROC AB 18
GRANITOR INVEST AB 20
MIDROC REAL ESTATE AB 22
OWNER & BOARD OF DIRECTORS 24
MIDROC NEW TECHNOLOGY AB 26
CONTACTS 27
M I D R O C E U R O P E4
Midroc Europe
Midroc Europe is a development group, promoting a marketing
concept that binds the Europe-based Midroc companies and
services together, offering the market undertakings and services
with financial and technical strength combined with highly com-
petent human resources along a broad line of services. Although
having the bulk of operational activities in Sweden, the business
expansion into Europe is progressing with branches and busi-
ness operations in Germany, the UK, France and Poland. In 2006
the marketing concept “Midroc Group in Scandinavia” was repla-
ced by “Midroc Europe” to better reflect our current presence
and planned development and expansion on the European scene.
The European business operations are grouped into four
major Business Areas as depicted below. Each Business Area is
further subdivided into the field of expertise to which the individu-
al Midroc-subsidiary is related.
Group Structure
The business development activities of Midroc Europe is based
on a variety of subsidiaries and legal groups, each providing their
specialised service - contracting, consulting, development or
managerial service. The Midroc Europe concept comprises,
firstly, three legal groups:
• Midroc AB (ex. Midroc Holding AB)
• Granitor Invest AB
• Midroc Real Estate AB
These groups represent the majority of our turnover and
each contains subsidiaries busy in our major groups of opera-
tions. In addition, Midroc Europe also includes the business acti-
vities of Midroc New Technology AB. These parent companies
and units are all registered in Sweden.
Regardless the legal belonging, the Midroc Europe compani-
es offer a dynamic and customer driven approach to service pro-
vision either as an individual Midroc subsidiary or when selective-
ly, on a case-by-case basis, combined with sister subsidiaries.
Among our companies, the approach is to provide an inte-
grated, single-point relationship for our clients and work with
them in long-term relationships!
Midroc Europe – a contracting, consultingand property development group
Contracting
MIDROC EUROPE
Property Development New MarketsConsulting
PAINTING & COATINGAlucrom AB
MECHANICALGP Ställningar ABRodoverken ABBAC Corrosion Control LtdMetalock Engineering AB
ELECTRICALMidroc Electro AB
REMEDIATION AND CLEANINGMidroc Enviroment AB
CONSTRUCTION MANAGEMENTMidroc Projects CM AB
PROJECT MANAGEMENTMidroc Engineering ABABV Rock Group ABMidroc Management AB
PROPERTY DEVELOPMENTMidroc Property Development AB
PROPERTY MANAGEMENTMidroc Real Estate ABM3W Invest AB
NEW TECHNOLOGYMidroc New Technology AB
M I D R O C E U R O P E 5
Sheik Mohammed H. Al-Amoudi
Global Outlook
The Midroc Global group, owned by Sheikh Mohammed H. Al-
Amoudi, also undertakes business operations in other regions
than Europe. The diversity of undertaken work covers a wide
spectrum of business areas, including engineering and construc-
tion, operation and maintenance, petroleum, manufacturing, tou-
rism, communications and trade. Operations have a global reach
across continents with 24,000 employees from varied nationali-
ties and the annual turnover exceeds nine billion dollars.
In the Kingdom of Saudi Arabia full engineering and con-
struction services are offered to large scale projects. In the indus-
trial sector the group owns and operates factories producing a
variety of products. In addition, the group is involved in the ser-
vice sector and in trade activities of properties and various con-
sumer commodities.
Operations in Africa are based in Ethiopia where Midroc Ethiopia
has been vigorously engaged through its companies in several
economic sectors with the ambition to positively participate in the
social and economic development of the country. The main
investment fields include agriculture, agro industry, construction,
mining, light and heavy industry, tourism and properties.
The group’s petroleum operations are extensive: Preem
Petroleum is a significant actor on the market, conducting exten-
sive trading and refining of crude oil. Preem operates two refineri-
es in Sweden and they are two of the most modern in Europe.
The group’s Moroccan subsidiaries own the majority of the coun-
tries petroleum refining capacity through two refineries. Petro
Swede undertakes via its subsidiaries exploration and production
of oil and gas, at present being carried out in the North Sea,
Baltic area and offshore the West Coast of Africa.
Midroc Europe
Project ManagementEngineeringBuilding ServicesIndustrial ServicesEnvironmental ServicesProperty DevelopmentTechnology Investments
Engineering and ConstructionManufacturingTrade, Consumer CommoditiesServicesAir, Land & Ocean FreightReal Estate Investments
AgricultureAgro-IndustriesConstruction and Real EstateMiningHeavy & Light IndustryTourismHealtcare
ExplorationRefiningDistribution
Various business fields
Midroc Middle East Midroc Ethiopia Petroleum Others
Project Management & Engineering
The best year for Midroc Europe ever! The favorable business
conditions during 2006 for Europe in general and for Sweden in
particular enabled several of the Midroc subsidiaries to achieve
their strongest individual year –end result ever. The summarized
result for Midroc Europe is subsequently record breaking and the
best achievement ever!
The total income before taxes was SEK 385 million (SEK
129.9 million in 2005). In total the legal groups had a turnover
of about SEK 3.0 billion (3.8 billion) and employed more than
2,000 people.
The Midroc companies supporting the
industrial and petrochemical sector have been
very successful and performed an all-time high
result this year. The services rendered, typically
comprising installation, repair, maintenance and
consulting, have been provided to a number of
major industrial clients and projects, in Sweden
as well as internationally.
Alucrom, specializing in advanced corrosion protection
coatings for steel structures, is reporting its best result ever.
The fixed paint shops have dramatically improved their result and
the on-site painting has doubled its volume since last year. One
of the more spectacular assignments in 2006 was the assign-
M I D R O C E U R O P E
2006 – a record breaking year!
6
ment for touch up painting of the Öresund Fixed Link bridge.
The market for electrical installations has also improved
during 2006 and Midroc Electro is presenting its best year ever.
Medium size projects still form the base for the operations but
major installation projects are becoming more frequent: During
this year, the installation of electrical systems as well as systems
for instruments and control for a new iron ore pelletizing plant for
LKAB was concluded for the iron mine in Malmberget. At this
point in time, a similar task – turning out to be the largest order
ever for Midroc Electro – was assigned by the same
client, now for the ore mine in Kiruna. Midroc Electro
has also successfully concluded the electrical installa-
tion work for three new IKEA home stores in Sweden.
Metalock operations in Germany are extremely
successful and have once again surpassed itself by
reporting an outstanding good result, needless to
say their best result ever. In Hamburg as well as at
Metalock UK in Coventry, business is growing and
the planning for expansion of the premises is in progress at
both locations.
This year was the first year in which Metalock operations
in Sweden again were undertaken by one single company,
Metalock Sweden, after having been subdivided into four legal
”We have continued
to improve sales and
operational efficiency.
In 2006 we achieved
our best result ever!”
50
100
150
200
250
300
350
400
MSEK
2003 2004 2005 2006
Midroc EuropeTotal income before taxes
MSEK
20
40
60
80
100
120
140
160
180
200
220
240
2003 2004 2005 2006
Contracting
Property Development
Midroc EuropeBusiness Area income before taxes
7M I D R O C E U R O P E
Segment turnover(Total 3.0 MMSEK)
Contracting 74%
ABV Rock Group 1%
GP Ställningar 1%
Midroc Environment 1%
Midroc Engineering 3%Alucrom 6%
Midroc Electro 40%
Metalock Group 16%
Midroc Real Estate 6% BAC Corrosion Control 2%
Property Development 23%
Project Management &Engineering 3%
Company turnover(Total 3.0 MMSEK)
Rodoverken 8%
Midroc PropertyDevelopment 16%
entities for the last five years. Improvement in cost pattern has
already been noted. In order to improve the business presence in
the Stockholm area, the mechanical service provider STIREP,
employing 15 men, will be acquired in 2007.
The part owned shipyard in Landskrona, comprising a dry
dock and a floating dock for repair and newbuild, was divested
to the partner during the year.
The volume of remediation contracting services rendered to
the environmental sector has grown as a response to the staff
expansion by new-employed project managers. The former busi-
ness line, focusing on major, multi-year remedial tasks for aban-
doned underground gasoline and oil storage plants has now
been successfully expanded to also include minor and quickly
executed projects. Our strong position regarding fixed plants for
treatment of organically contaminated soil remains however,
based on our nine local facilities throughout Sweden.
Midroc has reassured its position as a successful property
developer. Midroc Property Development is particularly active in
the south of Sweden and several new office and housing projects
have been undertaken during the year. Several early development
projects have been entered and other, ready developed properti-
es have been successfully divested, significantly impacting the
income of the Property Development business segment.
The real estate portfolio being managed by Midroc was
expanded further by the acquisition of the complete property,
soon housing the World Trade Centre complex in Malmö. Midroc
also holds properties for office and retail properties in the central
business district of Stockholm. Here, market rents continued to
stabilize during the year and efforts spent previous year in redu-
cing the high vacancy have proven successful in 2006.
Midroc has also continued the development of new techno-
logies for grinding and drying of waste material together with
partners.
The success of the Group is ultimately dependent on the
way our people respond at all levels, delivering services, develo-
ping client relationships and winning new business. It is testimony
to their efforts that Midroc Europe has performed so well and we
would like to thank them for their ongoing dedication.
Midroc Europe’s outstanding trading performance demon-
strates both its skills and its resilience. In our assessment of the
prospect for 2007 we are pleased to note the encouraging trade
outlook and continued buoyancy of our local markets in Europe.
We also welcome the additional opportunities available through
the strength of our related Midroc Groups in Middle East and
Africa as well as the group’s operations in the oil exploration and
refinery sector. This, combined with the workload in hand gives
us confidence in the prospects for the Group’s continued growth!
8
Contracting
Increasingly our customers wish to buy more services from fewer
suppliers. With our breadth of skills and services, we are able to
respond to that customer need and to deliver a “one-stop-shop”,
integrated service. Our ability to tailor our services to meet indivi-
dual Client needs by harnessing expertise from across the Group
differentiates us from other suppliers.
Through well-established company brands, this business
segment provides contracting services to the building and indus-
trial sector. Services are directed towards manufacturing, proces-
sing and petrochemical industry, comprising new- and rebuild as
well as maintenance and overhauls.
0
10
20
30
40
50
60
MSEK
20072002 2003 2004 2005 2006
Income before tax
0
2
4
6
8
10
12
14
16
18
MSEK
20072002 2003 2004 2005 2006
Income before tax
Result for Contracting segment
Our contracting companies are found among our legal groups
Midroc AB and Granitor Invest AB. Applying a cross view on con-
tracting, the virtual turnover of the Contracting segment was SEK
2,215 million (3,091) with an income of SEK 152 million (84) befo-
re appropriations and tax. The group’s building contractor, Midroc
Construction, with its significant turnover, was assigned begin-
ning of 2006, thus explaining the decreased turnover for the con-
tracting segment, compared to 2005.
0
20
40
60
80
100
120
140
160
MSEK
2002 2003 2004 2005 2006 2007
Income before tax
The Metalock Group
The Metalock group contains several business units for underta-
king service and repair work for heavy industry world wide. The
group supplies mechanical specialist skill to the international
heavy industry with the aim to reduce the customer’s fixed cost
for maintenance and investment projects.
During the year, the group has operated through wholly
owned subsidiaries in Sweden, Germany, the UK and France.
Generally, the group provides a wide range of mechanical ser-
vices such as mechanical repair, on-site machining, thermal
spraying, maintenance and mechanical erection. And of course
Alucrom AB
Alucrom AB is the largest anti-corrosion contractor in Sweden
with a well established position on the steel coating market.
Movable steel objects are blasted and painted in one of the com-
pany’s twelve permanent paint shops throughout Sweden and one
in Poland. Larger and sometimes spectacular objects – bridges,
tanks and large steel structures- are being treated at location.
Alucrom is also the only Swedish licensee for applying
Chartek world leading epoxy intumescent fire protection pro-
ducts, used worldwide by many industries within hydrocarbon
processing and chemical processing. In addition, Chartek materi-
als are also used for industrial and commercial applications where
longevity, durability and corrosion protection are a requirement.
Metalocking, the unique cast iron repair method that has lent its
name to the group. There may however be a difference in profes-
sional specialization among the individual Metalock business
units, based on historical development, staff skill and geographi-
cal location. Common to all units is however the international
mobility, necessary to undertake projects at short notice on loca-
tions all over the world.
M I D R O C E U R O P E
During 2006 Alucrom carried out corrosion protection repair work on steel members of the Öresund Fixed Link.
M I D R O C E U R O P E1 0
0
-1
-2
-3
1
2
3
MSEK
2002 2003 20072004 2005 2006
Income before tax
0
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4
6
8
10
MSEK
20072002 2003 2004 2005 2006
Income before tax
0
10
20
30
40
50
60
MSEK
20072002 2003 2004 2005 2006
Income before tax
5
4
3
2
1
0
MSEK
2002 2003 2004 2005 2006
Income before tax
Midroc Electro
Midroc Electro AB is working mainly with electrical installations
and related services within the fields of electrical power, security-,
data- and telecommunication. Through its Automation depart-
ment, the company also offers advanced services in the field of
Integrated Automation, an engineering field that connects pro-
cesses and production with advanced control and follows up.
Operations are conducted from 35 locations in Sweden with the
Head Office located in Sandviken. The Midroc Electro group has
900 employees.
Rodoverken AB
Rodoverken is a successful service and contracting company in
the piping and tank construction business. Rodoverken has spe-
cialized in the design, construction and erection of tailored indus-
trial plants. Its operations comprise tank erection, pipe spool
fabrication and pipe erection mainly for clients in the Nordic
countries. The company has a recognized position on the market
and well known to the industry is the unique spiral technique in
which tanks are built without scaffolding but are instead lifted up
as fabrication proceeds.
Midroc Environment Group
Midroc Environment Group is a leading provider of environmental
remedial services. The subsidiary Ekotec AB provides biological
treatment of contaminated soil while BACT System AB provides
flue gas emission control systems. Aquacor AB provides solu-
tions and products for treatment of process water and Airgrinder
AB develops techniques for material defragmentation and drying.
All subsidiaries are based in Skelleftehamn, Sweden.
The treatment of contaminated soil is the largest field of
business with permanent processing plants at nine locations in
Sweden. Three of these are operated under own management
and the remainder is operated in cooperation with partners.
BAC Corrosion Control Ltd
BAC Corrosion Control in the UK provides a full range of
Engineering Services in the cathodic protection field related to
pipelines, harbors, offshore installations, power stations, ships
and railroads.
Services are ranging from pre-installation design and survey
activities right through to installation testing and commissioning
surveys and on to maintenance and inspection programs.
GP Ställningar AB
GP Ställningar is a scaffolding contractor, providing safe and flexi-
ble scaffolding applications for the industry and construction pro-
jects, located on Sweden’s west coast.
0
2
4
6
MSEK
2002 2003 2004 2005 2006
Income before tax
2007
2007
The Metalock Group supply world wide mechanical specialist skill to the international heavy industry with the aim to reduce the customer’s fixed cost for maintenance and investment projects.
M I D R O C E U R O P E1 2
Consulting
The business segment provides consulting services such as pro-
ject management and administration, engineering and design,
focusing on the civil and industrial market. From 2007, a dedica-
ted subgroup for companies that provide consulting services has
been formed within Midroc AB. The new subgroup (Midroc
Consulting AB) will hold existing and future companies providing
consulting services.
Result for Consulting segment
The total turnover of the Consulting segment was SEK 125 milli-
on (123) with an income of SEK 4.2 million (5.9) before appropri-
ations and tax.
Midroc Engineering AB
Midroc Engineering AB is a knowledge partner, offering a full
range of engineering services, from subcontract work to turnkey
projects – everything from idea to finished plant and start-up. It
has offices in Stockholm, Gothenburg, Malmö and Lysekil. In
2006 the demand for engineering and consulting services has
been reasonably high but the company has struggled with shor-
tage in personnel and therefore not been able to fully take advan-
tage of the situation.
During 2007 the favorable market situation is expected to
last and Midroc Engineering will expand its business and work-
force significantly.
Income before tax
0
2
4
6
8
10
12
14
16
MSEK
2002 2003 2004 2005 2006 2007
Income before tax
ABV Rock Group AB
The company offers administrative and procurement services for
projects outside Europe, mainly in the Middle East and Africa. A
main service taker over the years has been the Saudi Strategic
Storage Program but in response to the approaching completion
of this program, ABV Rock Group AB will reduce its business
activity correspondingly.
10
5
0
15
20
MSEK
2002 2003 2004 2005 2006
0
2
4
6
8
10
MSEK
2002 2003 2004 2005 2006 2007
Income before tax
2007
The Swedish Rail Administration has appointed Midroc Engineering to form the Project Management team and execute a railway project in Gothenburg. A 1,200 m new track - whereof 550 m in anelevated position- will be interconnected with an existing line. The project is in progress 2005-2007 and once completed, it offers logistic benefits with reduced train approach time to the GothenburgHarbor area by approx. 30 min.
1 4 M I D R O C E U R O P E
Property Development
To Midroc Europe, the investment in real estate covers the full
range from developing of raw land or existing buildings to divest-
ment. Curiosity and speed, knowledge of the market, understan-
ding the customer needs, together with strong engineering and
design background are all essential elements for successfully
developing and managing property.
Midroc works with a large amount of projects, all in their
individual stage of development. It may be in the tentative and
early stage, in some stage of construction or in a completed
stage, ready for divestment to an external investor.
As the Midroc property activities also include traditional pro-
perty management, the business segment is subdivided into
Property Development and Property Management.
PROPERTY DEVELOPMENT
Midroc operations within property development are undertaken
by a dedicated sub-group, Midroc Property Development AB
(MPD), founded only eight years ago. With a wide approach to
development and prudent business operations, MPD has rapidly
become a prominent property developer, providing innovative real
estate concepts to external investors.
Midroc Property Development AB
Development projects may cover housing, tenant-owned living,
offices, commerce and properties for other use. With reference
to housing and accommodation projects, MPD holds more than
260,000 m2 confirmed building rights and additional 70,000 m2
in early development stages. With reference to commercial areas
for trade, office, hotel and similar use, MPD holds more than
165,000 m2 confirmed building rights and additional 40,000 m2 in
early development stages. MPD has a small but efficient staffing
and draws project dedicated resources from Midroc sister com-
panies within the fields of Project Management, Construction
Management and technical installations. The overall volume
covered by the operations puts MPD in the very front of Swedish
property development actors.
The geographical centre of the operations lies in the south of
Sweden. In the West Harbour area of Malmö, where a new city
district is under construction on the former premises of the
Kockums ship yard, MPD has a strong representation from seve-
ral completed development projects but also from projects in
progress. In this area, project development is mainly aimed at
offices, housing and hotel. Projects comprising housing and
commerce are also undertaken in other areas of Malmö.
Midroc has successfully maintained its position as a recogni-
zed actor on the Swedish property development market. The
MPD group has been involved in several development projects,
among them being appointed the official World Trade Center faci-
lity developer for the Malmö area. The WTC concept is a virtual
market place connecting some 300 other World Trade Centers in
75 countries. The “WTC Teknikportalen” property forms the star-
ting point of the concept and is already a meeting place for about
40 companies of various sizes. Over 800 persons work in the
building. Currently in progress is the construction of a second
office building “WTC Hamnplan”, having an airy design and a
high technical standard. Once completed, the WTC facility in
Malmö it will comprise 50,000 m2 of office spaces, conference
rooms, restaurants, show rooms and a fitness facility. Both pro-
perties will be owned by the property management group Midroc
Property Öresund.
Divestment of ready developed property is with necessity
infrequent and has of course a significant impact on the annual
income profile as can be seen in the graph.
0
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70
80
90
100
110
MSEK
2002 2003 2004 2005 2007
Income before tax
PROPERTY DEVELOPMENT
2006
Living 61%
Hotel, others 7%
Commerce 21%
Office 11%
Building rights, 425,000 m2 gross floor area
In Höganäs, Midroc Property Development acquired properties and initiated the upgrade and expansion of existing storehouse and outlet.
M I D R O C E U R O P E1 6
PROPERTY MANAGEMENT
Within the Midroc group, property management is undertaken by
a dedicated group, Midroc Real Estate AB.
Midroc Real Estate AB
The company owns and manages property at prime locations in
Stockholm and Malmö via its subsidiaries.
The property holdings in Stockholm are managed by the
subgroup Midroc Properties AB. The portfolio consists mainly of
centrally located properties in the inner commercial district of
Stockholm. The use is mainly for office but there are also areas
for retail and leisure. The buildings are all extremely well maintai-
ned and of a very high standard.
The regional economy in the Malmö/ Copenhagen area
shows a continuous growth after the completion of the fixed link
across Öresund in 2000. The commercial prospects are very pro-
mising and are attracting the interest of Midroc real estate invest-
ments. Midroc Property Öresund AB was formed in 2005, now
holding the two properties forming the newly established World
trade Center in Malmö.
Other property
The property holdings being owned and managed by Midroc also
include premises outside the main city areas and traditional use.
For example, north of Stockholm, a conference facility is opera-
ted and it is currently in a stage of expansion. A newbuild of
5.000 m2 accommodation and conference areas is under con-
struction and with a scheduled inauguration late 2008. In Kävlinge,
north of Malmö, a large facility for meat production has been
acquired and is temporarily being managed while awaiting
project development.
Sectors
The total rentable area for the properties is 160,000 m2 and the
portfolio has a mix of various uses. In terms of size, the heavy
point is in space for lighter industry and offices spaces. Other
uses have a minor share of the managed overall portfolio.
Market Value
The overall market value for the managed portfolio was assessed
in September 2005 and estimated at 1,650 MSEK, indicating an
overvalue against the books of 512 MSEK.
This office building is situated at Engelbrektsplan in the Stockholm commer-cial center. It was constructed at the end of the 19th century. It comprises3,500 m2 office space and a total of 800 m2 retail area.
Production 48%
Office 39%Retail 2%
Others 6%
Living 5%
Rentable area, 160,000 m2
-30
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-10
0
10
20
30
40
MSEK
2002 2003 2004 2005 2006 2007
Income before tax
-40
”Teknikportalen” is one of the two Midroc properties, forming the World Trade Center of Malmö.
Midroc AB – Result and Position
In 2006, Midroc Holding AB changed its name to Midroc AB.
Midroc AB, registration number 556366-0033 is a holding
company, operating through four sub groups with descriptive
names; Midroc Contracting AB, Midroc Consulting AB, Midroc
Property Development AB and Midroc Support AB. These
subgroups in turn hold subsidiaries, active in the corresponding
field. Furthermore, Midroc Support AB holds the Midroc Europe
shared functions, that is, not only for Midroc AB but for all
parent companies, Granitor Invest AB, Midroc Real Estate AB
and also for Midroc New Technology AB. Shared functions are
Business Development, Information and Communication,
Human Resources Management and IT.
Turnover and Result
For 2006 the Midroc AB Group generated a consolidated result
significantly above budget. The subsidiaries, active in the indus-
trial contracting business have been able to utilize the upward
economic trend in Europe and some of them have produced
their best result ever. Also reflected in this year’s group result
are the successful divestments of property projects, developed
by Midroc Property Development.
Income before taxes was SEK 190.4 million (161.6) and the
group’s Operating income ended up at SEK 182.5 million (165.6).
The group's turnover totaled SEK 1,565 million (1,623).
Balance Sheet
The balance sheet total has changed very little, from SEK 1,253
million in 2005 to SEK 1,256 million in 2006. The group’s solidity,
defined as equity plus financing by shareholders divided by the
balance sheet total as per 2006-12-31 was 61% (49%) which
opens up possibilities for further investments. Property and land
within the Property Development segment are considered as cur-
rent assets. The actual market value of land and property assets
is substantially higher than the booked value.
Parent company
Midroc AB company generated a turnover of SEK 0 million (0)
and an income of SEK -0.008 million (-0.026) before appropria-
tions and tax.
Personnel
The Midroc AB group employed at an average 900 people during
2006. Out of these, 300 were employed by the subsidiaries in
Germany, UK, France and Poland. The remaining was employed
by Swedish companies within the group.
20
0
40
60
80
100
120
140
150
160
170
180
190
MSEK
2002 2003 2004 2005 2006 2007
Income before tax
M I D R O C E U R O P E1 8
Midroc AB
Midroc Contracting AB
Alucrom AB
Midroc Consulting AB
Midroc Property Development AB
Midroc Support AB
GP Ställningar AB
Rodoverken AB
BAC Corrosion Control Ltd
Metalock Engineering AB
Midroc Engineering AB
Midroc Projects CM AB
Midroc Projects AB
Midroc Land Development AB
(Dedicated project companies)
ABV Rock Group AB
Midroc AB GroupYear-end statement 2006
CONSOLIDATED INCOME STATEMENT
SEK (THOUSANDS) 2006 2005
Net sales 1 565 255 1 623 100
Cost of goods sold - 1 207 347 - 1 275 382
Administrative expenses - 210 020 - 182 763
Other operating income and expenses 34 605 648
Operating income 182 493 165 603
Financial items 7 948 - 4 026
Income before appropriations and taxes 190 441 161 577
Taxes -43 897 - 34 212
Discontinued operations - 1 587 - 7 902
Minority share - 228 - 108
Net income 144 729 119 355
CONSOLIDATED BALANCE SHEET
Assets
SEK (THOUSANDS) 2006-12-31 2005-12-31
FIXED ASSETS
Intangible assets 12 032 16 925
Tangible assets 160 478 162 445
Financial assets 69 244 93 404
Total fixed assets 241 754 272 774
CURRENT ASSETS
Inventories, etc. 21 685 19 227
Property for resale 308 365 245 162
Accounts receivable, etc. 528 938 500 808
Liquid assets 155 937 215 811
Total current assets 1 014 925 981 008
TOTAL ASSETS 1 256 679 1 253 782
CONSOLIDATED STATEMENT OF CASH FLOW
SEK (THOUSANDS) 2006 2005
Cash flow from operating activities excl. of working capital 143 799 161 585
Changes to inventories - 50 960 37 523
Changes to working capital - 111 972 - 23 292
Cash flow from operating activities - 19 133 175 816
Net from investments and sales - 7 558 - 46 257
External financing - 33 068 - 8 653
Owner financing 601 - 573
Cash flow for the year - 59 158 120 333
CONSOLIDATED BALANCE SHEET
Equity and liabilities
SEK (THOUSANDS) 2006-12-31 2005-12-31
EQUITY
Restricted equity 391 800 391 800
Retained earnings 209 581 93 185
Net income 144 729 119 355
Minority interest - 2 641
Total equity 746 110 606 981
LIABILITIES
Shareholder’s loan, interest bearing 13 950 13 349
Long-term liabilities, interest bearing 96 361 143 215
Long-term liabilities, non-interest bearing 887 828
Current liabilities, interest bearing 2 584 1 618
Current liabilities, non-interest bearing 396 787 487 791
Total liabilities 510 569 646 801
TOTAL EQUITY AND LIABILITIES 1 256 679 1 253 782
M I D R O C E U R O P E 1 9
Granitor Invest AB– Result and Position
Granitor Invest AB, with registration number 556615-2491 is the
parent company of Midroc Invest AB, with registration number
555620-6768, WP International AB, with registration number
556355-2628. While WP International only is undertaking minor
business operations and Tumstock Sverige is in the process of
establishing a web shop for construction tools, outfit and suppli-
es, the bulk of activities are related to contracting, performed by
Midroc Electro and the Midroc Environment group.
Turnover and Result
The market for electrical installations improved during 2006 and
Midroc Electro made its strongest year ever. The company has
continued to improve profitability and managed to succeed the
budget. The installation work at the new pelletizing plant in
Malmberget for LKAB was successfully concluded during the
year and a similar assignment, only larger, was awarded by the
same client, this time for the pelletizing plant in Kiruna. This latter
assignment constitutes Midroc Electro’s largest single underta-
king so far.
The Midroc Environment group, providing services within soil
remediation through its subsidiary Ekotec, delivered a positive
result, reflecting an improved Swedish market for soil remediation
contracts. Operations at the permanent treatment plants in sout-
hern Sweden have however been satisfactory.
The group's turnover totaled SEK 1,257 million (998) with an
income before taxes of SEK 70.1 million (19.1). The group’s ope-
rating income ended up at SEK 65.7 million (24.9).
Balance Sheet
The balance sheet total increased from SEK 379 million in 2005
to SEK 484 million at year-end 2006. The group’s solidity defined
as equity plus financing by shareholders divided by the balance
sheet total as per 2006-12-31 was 40% (30%).
Parent company
The parent company Granitor Invest AB generated a turnover of
SEK - million (-) and an income of SEK 17.5 million (-3.6) before
appropriations and tax. Of the profit before appropriations and
tax, 21.200 MSEK thereof is anticipated dividends from compani-
es in the group.
Personnel
The Midroc Invest Group employed at an average 1,000 people
during 2006. All were employed at subsidiaries in Sweden.
10
0
-10
20
30
40
50
60
70
MSEK
2002 2003 2004 2005 2006 2007
Income before tax
M I D R O C E U R O P E2 0
Granitor Invest AB
Midroc Invest AB
Midroc Electro AB
WP International
Midroc Environment AB
Tumstock Sverige AB
Granitor Invest GroupYear-end statement 2006
CONSOLIDATED INCOME STATEMENT
SEK (THOUSANDS) 2006 2005
Net sales 1 257 195 988 168
Cost of goods sold - 1 128 006 - 913 412
Administrative expenses - 61 915 - 51 000
Other operating income and expenses - 1 571 1 102
Operating income 65 703 24 858
Financial items - 4 396 - 5 801
Income before appropriations and taxes 70 099 19 057
Taxes -17 437 -5 797
Minority share - 2 596 - 284
Net income 50 066 12 976
CONSOLIDATED BALANCE SHEET
Assets
SEK (THOUSANDS) 2006-12-31 2005-12-31
FIXED ASSETS
Intangible assets 23 476 24 551
Tangible assets 16 378 47 567
Financial assets 1 029 61
Total fixed assets 40 883 72 179
CURRENT ASSETS
Inventories, etc. 11 756 10 011
Accounts receivable, etc. 270 045 268 300
Liquid assets 161 373 29 309
Total current assets 443 174 307 620
TOTAL ASSETS 484 057 379 779
CONSOLIDATED STATEMENT OF CASH FLOW
SEK (THOUSANDS) 2006 2005
Cash flow from operating activities excl. of working capital 49 207 18 180
Changes to inventories - 1 745 - 622
Changes to working capital 38 522 - 16 846
Cash flow from operating activities 85 984 712
Net from investments and sales - 5 773 - 9 544
External financing 21 854 - 4 428
Owner financing 29 999 -
Cash flow for the year 132 064 - 13 260
CONSOLIDATED BALANCE SHEET
Equity and liabilities
SEK (THOUSANDS) 2006-12-31 2005-12-31
EQUITY
Restricted equity 102 102
Retained earnings 35 512 28 537
Net income 50 066 12 976
Minority interest 3 534 996
Total equity 89 214 42 611
LIABILITIES
Shareholder’s loan, interest bearing 107 400 71 400
Long-term liabilities, interest bearing 50 770 72 190
Long-term liabilities, non-interest bearing 3 121 3 012
Current liabilities, interest bearing 10 000 10 722
Current liabilities, non-interest bearing 223 552 179 864
Total liabilities 394 843 337 188
TOTAL EQUITY AND LIABILITIES 484 057 379 779
M I D R O C E U R O P E 2 1
Midroc Real Estate AB– Result and Position
In common with the Swedish Property Market in general and theStockholm market in particular we continue to experience anextremely challenging leasing market. The market remains verydifficult notwithstanding a widely held view that the prospects willimprove. Effective from 2006, the Midroc Real Estate group hassubsequently been re-organized and dedicated subgroups havebeen created, managing the Stockholm portfolio (MidrocProperties) and the Malmö portfolio (Midroc Property Öresund)respectively.
Midroc Properties AB
The rented accommodation market in Stockholm has been cha-racterised by a rich supply of vacant units which has also increa-sed competition in central Stockholm. The investments made onlettings have produced results and rental levels have begun torise during 2006. The properties Jacob Mindre 11, Spectern 8and Postiljonen 1 are fully let, and in other properties there areonly a few units where no contracts have yet been written.
Our premises for retail are all hired out. Despite the weakmarket in 2006, the Stockholm market is expected to improveduring 2007.
Midroc Property Öresund AB
This company was formed in 2005 and it is the parent companyof the properties forming the World Trade Center complex inMalmö.
Hackholmssund Conference Center AB
The conference centre, located approx. 55 km to the north-west ofStockholm operates on a market that remains very competitive.
MRE Holding AB
Our major strategic investment in Peab has continued to experi-ence appreciation in value, about 60% during 2006. The overva-lue of this holding is 505 MSEK before tax. The process of redu-cing the position in Peab share was started in 2006.
Result and Position
2006 brought an improved market situation in Stockholm.The group's turnover totaled SEK 183 million (124). The overallannual result of SEK 124.3 million (-39.9) was to its greatest part(SEK 95 million) created by divestment of listed PEAB shares.The loss in 2005 was related to a non-recurring cost after re-negotiating the financing package.
Balance Sheet
The balance sheet total increased from SEK 1,946 million in 2005to SEK 2,147 million at year-end 2006. A property valuationmade in 2005 shows that the market value is exceeding thebook value by 512 MSEK before tax.
Parent company
The parent company Midroc Real Estate AB generated a turn-over of SEK 1.4 million (0) and an income of SEK -14.7 million(-4,5) before appropriations and tax.
Personnel
During 2006 an average of 11 people were employed in the group.
-40
-20
0
20
40
60
80
100
120
140
MSEK
2002 2003 2004 2005 2006 2007
Income before tax
M I D R O C E U R O P E2 2
Midroc Real Estate AB
Midroc Properties AB
Midroc Property Öresund AB
Others
Midroc Real Estate GroupYear-end statement 2006
CONSOLIDATED INCOME STATEMENT
SEK (THOUSANDS) 2006 2005
Net sales 183 912 124 285
Property expenses - 72 288 - 49 892
Administrative expenses - 25 544 - 17 164
Operating income 84 080 57 229
Financial items 40 244 - 97 214
Income before appropriations and taxes 124 324 - 39 985
Taxes - 11 631 -
Net income 112 693 - 39 985
CONSOLIDATED BALANCE SHEET
Assets
SEK (THOUSANDS) 2006-12-31 2005-12-31
FIXED ASSETS
Tangible assets 1 710 718 1 617 205
Financial assets - 227 375
Total fixed assets 1 710 718 1 844 580
CURRENT ASSETS
Accounts receivable, etc. 73 719 11 718
Short-term investments 191 196
Liquid assets 171 792 90 186
Total current assets 436 707 101 904
TOTAL ASSETS 2 147 425 1 946 484
CONSOLIDATED STATEMENT OF CASH FLOW
SEK (THOUSANDS) 2006 2005
Cash flow from operating activities excl. of working capital 51 452 -23 148
Changes to inventories - 29 363 - 30 314
Cash flow from operating activities 22 089 -53 462
Net from investments and sales 53 919 45 234
External financing - 49 402 - 7 722
Owner financing 55 000 58 600
Cash flow for the year 81 606 42 650
CONSOLIDATED BALANCE SHEET
Equity and liabilities
SEK (THOUSANDS) 2006-12-31 2005-12-31
EQUITY
Share capital 10 000 10 000
Restricted reserves 17 767 2 700
Non-restricted reserves - 2 250 52 802
Net income 112 693 - 39 985
Total equity 138 210 25 517
LIABILITIES
Shareholder’s loan, interest bearing 376 423 197 831
Long-term liabilities, interest bearing 1 449 769 1 628 824
Long-term liabilities, non-interest bearing 13 315 2 598
Current liabilities, interest bearing 23 552 17 491
Current liabilities, non-interest bearing 146 156 74 223
Total liabilities 2 009 215 1 920 967
TOTAL EQUITY AND LIABILITIES 2 147 425 1 946 484
M I D R O C E U R O P E 23
M I D R O C E U R O P E2 4
The Midroc trade mark is a brand name owned by Sheik
Mohammed Hussein Al-Amoudi. The Midroc international hol-
ding company has its headquarter in Jeddah, Saudi Arabia
and operations have a global reach across four continents
with 24,000 employees of varied nationalities.
Sheik Al-Amoudi is one of the largest foreign investors in
Sweden. Within Sweden and Europe, the Midroc brand is
represented by three major legal groups, Midroc AB, Granitor
Invest AB and Midroc Real Estate AB. Lately, the newly foun-
ded Midroc New Technology AB has been added.
In addition, Sheik Al-Amoudi is the owner of Preem
Petroleum, Sweden’s largest oil company operating two refine-
ries representing 75% of the Swedish oil refining capacity with
a distribution network comprising 500 gas stations.
The Board of Directors is responsible for the companies’
strategic development and for supervising and controlling the
group business operations. It also decides on major invest-
ments, confirms the companies’ ethical values and operating
principles and oversees their implementation.
The Board of Directors has appointed an Executive
Committee (ExCom) with the task to implement the decided
strategies and to lead the development of the group on a daily
basis. ExCom interacts currently with the individual subsidiary
management in strategic and tactical issues. One or more of
the committee members are represented in every single subsi-
diary board and from this platform the committee members
can fulfil their assignment on a daily basis.
The parent companies of the group have the following
board composition:
Owner & Board of Directors
Midroc AB
Abdullah Al-Amoudi, chairman
Waddah Al-Alem, member
Karim Karaman, member
Roger Wikström, member
Christer Wikström, member
Thomas Mårtensson, special adviser, MD
Granitor Invest AB
Roger Wikström, chairman
Mohammed Al-Amoudi, member
Abdullah Al-Amoudi, member
Christer Wikström, member, MD
Waddah Al-Alem, special adviser
Thomas Mårtensson, special adviser
Midroc Real Estate AB
Abdullah Al-Amoudi, chairman
Waddah Al-Alem, member
Karim Karaman, member
Roger Wikström, member, MD
Christer Wikström, member
Thomas Mårtensson, member
M I D R O C E U R O P E 2 5
Abdullah Al-Amoudi
Mr. Al-Amoudi is the Director General of the
Midroc International Holding Company since
1998, seated in Jeddah, Saudi Arabia. In his
position he is responsible for the global
Midroc strategies. Since 1978, Mr. Al-Amoudi
has held the top management positions of
the engineering, finance and procurement
departments within international airports pro-
jects in Saudi Arabia.
He is a graduate engineer (Dipl. Ing) in
Electrical Engineering from the University of
Technology in Aachen, Germany.
Waddah Al-Alem
Dr. Al-Alem is the Deputy Director General at
Midroc International Group since 1998 and
before that he worked for Bechtel since
1983. He started his carrier as communica-
tion specialist on the Space Shuttle Program
and then on the communication systems for
three international airports. His experience
includes top management positions in the
fields of Research and Development,
Strategic Planning, Information Technology,
Engineering and Aviation.
He is a PhD honor graduate in Electrical
Engineering from the University of Southern
California.
Roger Wikström
Prior to joining the Midroc Group in 1999,
Mr. Wikström was Managing Director for
Ecuro, a property service provider focusing
on property administration and current main-
tenance and repair. Before that he served in
various managerial positions and has develo-
ped wide expertise, particularly in property
related matters, ranging from development
and construction via management to invest-
ment/sale and related financing.
Mr Wiström is a member of the Execu-
tive Committee with particular attention to
activities and services related to property
development, property management and
engineering.
He holds a Master of Science in Civil
Engineering.
Thomas Mårtensson
Mr. Mårtensson has broad experience from
legal and financial aspects related to the
operation of larger groups with subsidiaries.
Mr. Mårtensson is a member of the
Executive Committee with particular attention
to services related to mechanical installation,
plant maintenance, industrial painting and
corrosion control.
He entered the Midroc group manage-
ment at its formation in 1995 and has served
the group since then.
He holds a Bachelor of Science in
Economics.
Christer Wikström
Mr. Wikström joined the Midroc Group at its
formation in 1995 and has worked in various
managerial positions since then, with his
experience ranging from industrial marketing
and sales via property investments to busi-
ness development and group synergies.
Mr. Wikström is a member of the
Executive Committee with particular attention
to services related to electrical installations,
industrial automation, soil remediation, IT and
emerging new technologies.
He holds a Master of Science in
Mechanical Engineering and a Master of
Business Administration.
Karim Karaman
Mr. Karaman has a background from interna-
tional investments and finance. He is a direc-
tor and President of Preem Holdings since
February 2001 and a director of Preem
Petroleum since 2000. Mr. Karaman is a
director of Svenska Petroleum Exploration AB
since 2000. From 1993 to 1999 Mr. Karaman
worked for a large European Bank in
Amsterdam, Paris and Geneva, leaving as
Vice-President for Private Banking, speciali-
zing in the Middle East.
M I D R O C E U R O P E2 6
Midroc New Technology AB
Creative ideas are just the first step in the long journey to building
self-sustaining companies, and eventually, category-leading cor-
porations. In most cases, the commercial development of new
technology requires the financing from a venture capitalist.
Midroc New Technology (MNT) is a newly started venture
capital company within Midroc Europe and its mission is to provi-
de equity capital for carefully selected high-risk business oppor-
tunities with the hope of extraordinary returns. Focus is set on
private equity in new, potentially ground-breaking, technologies
and business concepts with an emerged window of opportunity.
Our philosophy for investing is that the business idea is
interesting in its own right with clearly defined market opportuniti-
es and proprietary technology advances. Preferably, we seek to
invest in companies working on patented technologies that are
revolutionary as opposed to evolutionary. We look for demonstra-
ted prerequisites for a substantial, rapid and international break-
through, primarily but not exclusively in the fields of
• energy efficiency
• environmental care
• security
Although we occasionally make our initial investment in com-
panies at later stages of their growth cycle, we prefer to invest in
new technologies prior to commercial development because it
enables us to leverage our value-added capabilities. We often
evaluate prototypes or examine early demonstrations of pheno-
mena that could offer extraordinary opportunities for development.
The timing and method of returning invested capital are of
course important considerations for MNT as for any venture capi-
talist. Exits will take place at the point in time when a portfolio
company has proven itself and developed enough to allow a sale
to a new structure of ownership that is industrially logical and jus-
tified which can mean a new phase of development, rationaliza-
tions, synergies, restructuring or expansion.
To minimize costs and yet to maximize efficiency, MNT con-
sists of few but productive investment managers / business
developers that actively and continuously assist and accompany
the portfolio companies on the road to a successful exit. The
mark of MNT shall be perceived as a combination of “heart,
brains and wallet”, facilitating pro-active decision making, early
warning notice, professional guidance, cross pollinations and fur-
nishing of strategic alliances.
MNT is currently building up a successful track record of cul-
tivating viable technologies. Our hands-on approach is key rea-
son that leading entrepreneurs choose to partner with us. As
company founders and entrepreneurs ourselves, we know first-
hand what it takes to realize a product and build a successful
company.
M I D R O C E U R O P E
Contacts
PARENT COMPANIES OPERATING COMPANIES
Midroc ABP.O. Box 2053SE-174 02 SundbybergSweden
Granitor Invest ABP.O. Box 2053SE-174 02 SundbybergSweden
Midroc Real Estate ABP.O. Box 5785SE-114 87 StockholmSweden
Midroc New Technology ABP.O. Box 2053SE-174 02 SundbybergSweden
Midroc Properties ABP.O. Box 5785SE-114 87 StockholmSweden
Midroc Property Öresund ABP.O. Box 2053SE-174 02 SundbybergSweden
Midroc Electro ABP.O. Box 501SE-811 25 SandvikenSweden
Midroc Engineering ABP.O. Box 2092SE-174 02 SundbybergSweden
Midroc PropertyDevelopment ABSkeppsgatan 11SE-211 19 MalmöSweden
Midroc Projects CM ABP.O. Box 2053SE-174 02 SundbybergSweden
Alucrom ABP.O. Box 8919SE-402 73 GöteborgSweden
HYAB HässleholmsYtbehandlings ABP.O. Box 2034SE-281 02 HässleholmSweden
HYAB Alucrom Sp. Z o. o.Bykow 9055-095 MirkowPoland
BAC Corrosion Control LtdStafford Park 11Telford TF3 3AYUnited Kingdom
GP Ställningar ABKasens IndustriområdeSE-451 50 UddevallaSweden
Rodoverken ABP.O. Box 7SE-444 21 StenungsundSweden
SvedjeholmensIndustrimontage ABBox 23892 21 DomsjöSweden
ABV Rock Group ABP.O. Box 2053SE-174 02 SundbybergSweden
Metalock Sweden ABP.O. Box 1523SE-401 50 GöteborgSweden
Metalock Industrie Service GmbHGutenbergring 64D-22848 NorderstedtGermany
Metalock Engineering UK Ltd11 Paragon Way, Bayton RoadExhall, Coventry CV7 9QSUnited Kingdom
Metalock Industrie Service SARL22, rue des EntrepreneursZ.A. de la Plaine HauteF-91560 CrosneFrance
Bergslagens Elektro-Mekaniska ABHästskovägen 5SE-813 33 HoforsSweden
Tumstock Sverige ABP.O. Box 42501SE-126 16 StockholmSweden
Ekologisk Technologii Skelleftehamn ABP.O.Box 34SE-932 21 SkelleftehamnSweden
Hackholmssund Konferens ABBroSE-197 91 BroSweden
Pho
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Per
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Alb
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2 7
www.midroc.se