1

2019-04-29 NCC AB1

Interim report first quarter 2019

Fredriksberg, Helsinki

Tomas CarlssonCEO

Susanne LithanderCFO

2019-04-29 NCC AB2

• Orders received on a high level on the back of continued good demand

• Stable operating profit

• Healthy cash flow

• Two new property development projects started

Consistent Q1 performance

Frederiks Plads, Copenhagen

2

2019-04-29 NCC AB3

Examples of action taken during the quarter

• Divestment of retail projects Roskildevej and Kolding

• Divestment process of division Road Service proceeding according to plan, expected to be completed in 2019

• Turnaround initiatives ongoing in non-performing units

Action plan to strengthen NCC

2019-04-29 NCC AB4

Orders received and order backlogHigher than historical average

11.4

17.5

15.5

49.4

58.961.4

0

10

20

30

40

50

60

70

0.0

5.0

10.0

15.0

20.0

25.0

Q12017

Q12018

Q12019

Orders received Order backlog

SEK Bn

3

2019-04-29 NCC AB5

Net sales and EBITSales increased in all business areas

244

-364 -352

11,74810,894

11,434

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

-400

-300

-200

-100

0

100

200

300

400

Q12017

Q12018

Q12019

EBIT Net sales

SEK M

2019-04-29 NCC AB6

Net sales and EBIT – without PDConstruction and industry business on par with previous years

-349-380

-332

9,57510,609 11,023

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

-400

-300

-200

-100

0

100

200

300

400

Q12017

Q12018

Q12019

EBIT Net sales

SEK M

0

4

2019-04-29 NCC AB7

NCC InfrastructureOrders received on good level – prudent profit recognition

SEK MJan-Mar

2019Jan-Mar

2018Jan-Mar

2017*

R12 Apr 18 –

Mar 19Jan-Dec

2018

Orders received 4,840 8,284 4,996 17,827 21,271

Order backlog 22,460 21,620 17,957 22,460 21,037

Net sales 3,649 3,587 3,365 16,997 16,936

EBIT 8 44 -66 -734 -698

EBIT margin, % 0.2 1.2 -2.0 -4.3 -4.1

NCC Road Service

Net sales 662 707 2,811 2,855

EBIT -5 -55 -245 -296

*Including NCC Road Service

Tunnel, Faroe Islands

2019-04-29 NCC AB8

NCC Building SwedenNet sales on good level and order backlog strong

SEK MJan-Mar

2019Jan-Mar

2018Jan-Mar

2017

R12 Apr 18 –

Mar 19Jan-Dec

2018

Orders received 2,579 3,677 2,351 13,978 15,075

Order backlog 17,619 19,367 16,953 17,619 18,709

Net sales 3,669 3,649 3,206 15,720 15,701

EBIT 110 111 93 452 453

EBIT margin, % 3.0 3.0 2.9 2.9 2.9Hyllie, Malmö

5

2019-04-29 NCC AB9

NCC Building NordicsImproved project margins and higher sales drives increased EBIT

SEK MJan-Mar

2019Jan-Mar

2018Jan-Mar

2017

R12Apr 18 –

Mar 19Jan-Dec

2018

Orders received 4,187 1,915 1,380 13,501 11,229

Order backlog 13,132 10,384 10,205 13,132 11,313

Net sales 2,567 2,299 2,451 11,021 10,753

EBIT 34 11 -55 -204 -227

EBIT margin, % 1.3 0.5 -2.2 -1.9 -2.1Tuborg Havn, Copenhagen

2019-04-29 NCC AB10

NCC IndustryPronounced seasonality in the business

SEK MJan-Mar

2019Jan-Mar

2018Jan-Mar

2017

R12 Apr 18 –

Mar 19Jan-Dec

2018

Net sales 1,265 1,165 1,087 13,067 12,968

EBIT -385 -411 -310 377 350

EBIT margin, % -30.5 -35.3 -28.5 2.9 2.7

RoCE, % 7.3 7.1

Vestbirk Grusgrav, Denmark

6

2019-04-29 NCC AB11

Activity seasonally low – in line with previous years

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Stone material sold, thousands of tons

0

500

1,000

1,500

2,000

2,500

3,000

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Asphalt sold, thousands of tons

2019-04-29 NCC AB12

NCC Property DevelopmentNo major projects profit-recognized in the quarter

SEK MJan-Mar

2019Jan-Mar

2018Jan-Mar

2017

R12 Apr 18 –

Mar 19Jan-Dec

2018

Net sales 411 285 2,173 2,284 2,157

EBIT -20 16 593 -217 -181

EBIT margin, % -4.8 5.5 27.3 -9.5 -8.4

RoCE, % -4.6 -3.9

Masthuggskajen Våghuset, Gothenburg

7

2019-04-29 NCC AB13

Portfolio focused on SwedenTwo new projects started this quarter

0

50,000

100,000

150,000

200,000

250,000

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Sweden

Norway

Denmark

Finland

No. of projects

16

1918

22 21 21

18

18 17

Lettable space, sqm

2019-04-29 NCC AB14

Healthy letting in the quarter – 31,000 sqm

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

220,000

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Remaining unlet area,sqm

Let during quarter,sqm

Previously let area,sqm

Let during quarter(% of available unletarea)

8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

2019-04-29 NCC AB15

Letting and completion status in the property portfolio

Letting ratio

Completion ratio

Income statement

SEK MJan-Mar

2019Jan-Mar

2018Apr 18 -Mar 19

Jan-Dec 2018

Net sales 11,434 10,894 57,885 57,346

Gross profit 346 342 2,144 2,140

Selling and administrative expenses -693 -703 -2,865 -2,875

Cost ratio 6.1% 6.5% 5.0% 5.0%

Other -5 -3 -31 -29

EBIT -352 -364 -752 -764

Financial items -18 -8 -95 -85

EBT -370 -372 -846 -849

Tax 57 76 79 99

Profit for the period -314 -296 -767 -750

2019-04-29 NCC AB16

9

SEK MJan-Mar

2019Jan-Mar

2018

NCC Infrastructure 3 -11

NCC Building Sweden 110 111

NCC Building Nordic 34 11

NCC Industry -385 -411

NCC Property Development -20 16

Non core assets, Road Service - -

Other and eliminations -94 -79

EBIT -352 -364

2019-04-29 NCC AB17

Other and eliminations

SEK MJan-Mar

2019Jan-Mar

2018

NCC HQ etc. -54 -57

Internal gains -11 -2

Other Group adjustment -29 -20

Other and eliminations -94 -79

Effects from IFRS16 Leasing

Income statement Balance sheet Cash flow

No impact

+ 162 SEK M cash flow from operating

activities

-162 SEK M cash flowfrom financing

activities

Reversed leasing cost

Ne

t p

rofit

/loss

exc

lIF

RS

16

Ne

t p

rofit

/loss

incl

IFR

S16

Increased depreciation

Increasedfinancial net

-309

Impact 1.364 SEK M

Assets: Right-of-use assets in

fixed asset

Liabilities: Long-term interest-bearing 946 SEK MShort-term interest-bearing 422 SEK M

Total effect -5 SEK M

10

1,011

4,844

Jan-Mar2018

Jan-Mar2019

SEK M 2019 2018

Other net debt 665 − 889

Lease liabilities 1,875 443

Pension liability 2,304 1,457

Total 4,844 1,011

2019-04-29 NCC AB19

Net debt

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

-3

-2

-1

0

1

2

3

4Cash flow before financing

Improved cash flow in Q1

SEK MJan-Mar

2019Jan-Mar

2018Apr 18 -Mar 19

Jan-Dec 2018

From operating activities -216 -394 913 735

From property projects -209 -356 -1,018 -1,166

Other working capital 478 166 367 55

Investing activities -194 -231 -744 -782

Cash flow before financing

-140 -815 -482 -1,157

SEK BN

R12

2019-04-29 NCC AB20

11

2019-04-29 NCC AB21

• Orders received on a high level on the back of continued good demand

• Stable operating profit

• Healthy cash flow

• Two new property development projects started

• Long-term improvement process for NCC on track

Consistent Q1 performance

2019-04-29 NCC AB22

12

Contact information and calendar

Chief Financial Officer

Susanne Lithander

Tel: +46 (0) 73-037 08 74

susanne.lithander@ncc.se

IR Manager

Johan Bergman

Tel: +46 (0)70-354 80 35

johan.bergman@ncc.se

Financial Calendar

July 19, 2019 Interim report Jan-Jun

October 28, 2019 Interim report Jan-Sep

January 30, 2020 Interim report Jan-Dec

2019-04-29 NCC AB23