2019-07-19 NCC AB1

Tomas CarlssonCEO

Susanne LithanderCFO

Interim report Jan-Jun 2019 and Q2

Fredriksberg, Helsinki

• Strong orders received in the quarter

‒ Building Nordics and Infrastructure increases order intake

‒ Building Sweden solid base demand but no large order timed to this quarter

• Order backlog strongest so far

• Net sales on par with last year

• Operating profit on a fair level

‒ Prudent profit recognition impacts comparison with last year

‒ Restructuring costs of 20 MSEK in the quarter

• Property Development: One project profit recognized, one project started and strong letting

2019-07-19 NCC AB2

NCC Q2: Remaining on the right track

2019-07-19 NCC AB3

Strong orders receivedMain driver: Building Nordics and Infrastructure

13.816.1

31.4 31.6

0

5

10

15

20

25

30

35

Q2 2018 Q2 2019 H1 2018 H1 2019

SEK Bn

4

Residential orders received

0

1,000

2,000

3,000

4,000

5,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2017 2018 2019

Orders received residential Average

SEK M

Peak driven mainly by severalprojects in Sweden

Peak driven mainly by threelarge projects in Denmark

2019-07-19 NCC AB5

Order backlog strongest so far

40

45

50

55

60

65

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2

SEK Bn

63

2019-07-19 NCC AB6

Net sales on par with last year

14,349 14,610

25,24426,044

0

5,000

10,000

15,000

20,000

25,000

Q2 2018 Q2 2019 H1 2018 H1 2019

SEK M

2019-07-19 NCC AB7

EBIT on fair level for the quarterPositive EBIT in all BAs - impact from restructuring and prudent profit recognition

452

411

8859

0

100

200

300

400

500

Q2 2018 Q2 2019 H1 2018 H1 2019

SEK M

2019-07-19 NCC AB8

NCC InfrastructureOrders received on good level and profitability slowly improving

SEK M

Apr-Jun

2019 Apr-Jun 2018

R12 Jul 18 – Jun

19

Jan-Dec

2018

Orders received 3,428 2,738 18,517 21,271

Order backlog 21,770 20,161 21,770 21,037

Net sales 4,192 4,325 16,864 16,936

EBIT 81 26 -723 -743

EBIT margin, % 1.9 0.6 -4.3 -4.4

Effect of resolution of claims 45

Adjusted EBIT 36

Adjusted EBIT margin, % 0.9

NCC Road Services

Net sales 635 665 2,781 2,855

EBIT 6 25 -219 -251

2019-07-19 NCC AB9

NCC Building SwedenNo large project this quarter but consistent performance

SEK M

Apr-Jun

2019

Apr-Jun

2018

R12

Jul 18 – Jun

19

Jan-Dec

2018

Orders received 2,368 3,111 13,234 15,075

Order backlog 16,261 18,422 16,261 18,709

Net sales 3,726 4,057 15,389 15,701

EBIT 76 147 381 453

EBIT margin, % 2.0 3.6 2.5 2.9

Effect of provision for Rågården 37

Adjusted EBIT 113

Adjusted EBIT margin, % 3.0

2019-07-19 NCC AB10

NCC Building NordicsVery strong order intake and improved margins in all markets

SEK M

Apr-Jun

2019

Apr-Jun

2018

R12

Jul 18 –

Jun 19

Jan-Dec

2018

Orders received 6,210 3,349 16,362 11,229

Order backlog 16,738 11,501 16,738 11,313

Net sales 2,803 2,571 11,253 10,753

EBIT 46 34 -192 -227

EBIT margin, % 1.6 1.3 -1.7 -2.1

2019-07-19 NCC AB11

NCC Industry: Stone and asphalt volumesProject phasing normalizes volumes in Q2

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

Q2

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

Q2

Asphalt sold, thousands of tons

2019-07-19 NCC AB12

NCC IndustryOverall a consistent performance

SEK M

Apr-Jun

2019

Apr-Jun

2018

R12

Jul 18 –

Jun 19

Jan-Dec

2018

Net sales 3,721 3,625 13,162 12,968

EBIT 322 324 375 350

EBIT margin, % 8.6 8.9 2.8 2.7

RoCE, % 6.7 7.1

2019-07-19 NCC AB13

NCC Property DevelopmentOne property sold in the quarter: Brunna 4 outside Stockholm

SEK M

Apr-Jun

2019

Apr-Jun

2018

Apr-Jun

2017

R12

Jul 18 –

Jun 19

Jan-Dec

2018

Net sales 321 115 185 2,490 2,157

EBIT 40 -16 65 -160 -181

EBIT margin, % 12.5 -13.9 35.2 -6.4 -8.4

RoCE, % -6.0 -3.9

2019-07-19 NCC AB14

Portfolio focused on SwedenOne new project started this quarter: Arendal 4 in Gothenburg

0

50,000

100,000

150,000

200,000

250,000

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2

Sweden

Norway

Denmark

Finland

No. of projects

16

1918

22 21 21

18

1817

Lettable space, sqm

17

2019-07-19 NCC AB15

Letting on high level

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

Q2

Remaining unlet area,sqm

Let during quarter,sqm

Previously let area,sqm

Let during quarter(% of available unletarea)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2

2019-07-19 NCC AB16

Letting and completion status in the property portfolio

Letting ratio

Completion ratio

Income statement

SEK M

Apr-Jun

2019

Apr-Jun

2018

R12

Jul 18 -

Jun 19

Jan-Dec

2018

Net sales 14,610 14,349 58,146 57,346

Gross profit 1,137 1,153 2,129 2,140

Selling and administrative expenses -730 -712 -2,883 -2,875

Cost ratio 5.0% 5.0% 5.0% 5.0%

Other 4 12 -39 -29

EBIT -411 -452 -793 -764

Financial items -32 -25 -102 -85

EBT 380 427 -895 -849

Tax -58 -86 108 99

Profit for the period 322 341 -787 -750

2019-07-19 NCC AB17

SEK M

Apr-Jun

2019

Apr-Jun

2018

NCC Infrastructure 81 26

NCC Building Sweden 76 147

NCC Building Nordics 46 34

NCC Industry 322 324

NCC Property Development 40 -16

Non core assets, Road Service 6 25

Other and eliminations -160 -87

EBIT 411 452

2019-07-19 NCC AB18

Other and eliminations

SEK MApr-Jun

2019Apr-Jun

2018

NCC HQ etc. -94* -50

Internal gains -44 -27

Other Group adjustments

-22 -10

Other and eliminations

-160 -87

* Includes approx 20 MSEK in restructuring cost

1,416

2,369

1,211

2,089

457

1,894

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q2 2018 Q2 2019

Pension liability Other net debt Leasing liabilities (incl IFRS 16)

2019-07-19 NCC AB19

Net debt6,352

3,084

Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2

-3

-2

-1

0

1

2

3Cash flow before financing

Positive trend in cash flow

SEK MApr-Jun

2019Apr-Jun

2018Jul 18 -Jun 19

Jan-Dec

2018

From operating activities

-297 -897 1,880 790

From property projects

-591 -534 -1,075 -1,166

Investing activities

-221 -280 -686 -782

Cash flow before financing

-1,109 -1,710 119 -1,157

SEK BN R12

2019-07-19 NCC AB20

• Strong orders received in the quarter

‒ Building Nordics and Infrastructure increases order intake

‒ Building Sweden solid base demand but no large order timed to this quarter

• Order backlog strongest so far

• Net sales on par with last year

• Operating profit on a fair level

‒ Prudent profit recognition impacts comparison with last year

‒ Restructuring costs of 20 MSEK in the quarter

• Property Development: One project profit recognized, one project started and strong letting

2019-07-19 NCC AB21

NCC Q2: Remaining on the right track

2019-07-19 NCC AB22

Contact information and calendar

Chief Financial Officer

Susanne Lithander

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

susanne.lithander@ncc.se

Head of Communication

Maria Grimberg

Tel: +46 (0) 70-896 12 88

maria.grimberg@ncc.se

Financial Calendar

October 28, 2019 Interim report Jan-Sep

January 30, 2020 Interim report Jan-Dec

2019-07-19 NCC AB23