NCC-Group: Interim Report January-March 2001

NCC-GROUP: Interim Report January-March 2001 Jan-March 12 months 2001 2000 April Jan-Dec (pro forma) 2000- 2000 March (pro 2001 forma)1) Orders received, SEK M 12 599 9 596 49 319 46 316 Net sales, SEK M 9 007 7 900 41 915 40 808 Operating profit/loss, SEKM -169 -212 2 464 2 421 excl. items affecting -169 -212 1 552 1 509 comparability Profit/loss after net -330 -314 2 047 2 063 financial items, SEK M -330 -314 1 135 1 151 excl. items affecting comparability Earnings per share, SEK -2,20 -2,50 13,65 13,15 excl. items affecting -2,20 -2.50 7,65 7,20 comparability Return on equity, % 9 8 excl. items affecting comparability 1) For further information about pro forma figures, see "Business Areas" on page 3. · Strong order bookings during first quarter, up 31 percent · Stabilization of earnings trend within NCC Contracting · The lower earnings is attributable primarily to a lower financial items · Build-out of 3G in Sweden delayed · Alf Göransson appointed new President and Chief Executive Officer of NCC, effective no later than autumn 2001. · After the close of the report period, an agreement was reached with Vasakronan regarding the sale of Kista Science Tower and the purchase of rights for residential and office development in the Stockholm region. Comments by the Chief Executive Officer: "Our property-development operations enjoyed a successful first quarter, with operating profit rising to SEK 192 M (163). We also noted a stabilization of the earnings trend within NCC Contracting, partly as a result of the actions we took during 2000," says Jan Sjöqvist. "Within NCC Industry, we can now see the favorable effects of the significantly improved market conditions in Denmark and Norway, and we expect the business area to report higher profit for 2001 than in 2000." "The Group's first-quarter earnings were adversely affected by exchange- rate effects and initial costs for the build-up of operations in the NCC Telecom business area. We remain confident regarding future strong growth in the telecommunications sector, although we are now anticipating that large-volume construction assignments will be delayed by six to nine months." Orders received Orders received by the NCC Group during the January - March 2001 period amounted to SEK 12,599 M, up 31 percent compared with orders of SEK 9,596M received during the corresponding period of 2000. The largest increases were noted in Sweden and Denmark. Proprietary property- development projects accounted for SEK 782 M (21) of total orders received during the period. Net sales and earning Consolidated net sales during January - March 2001 amounted to SEK 9,007 M (7,900), up 14 percent compared with the year-earlier period. The largest sales increases were noted by NCC Contracting and NCC Housing, particularly in the Danish and Finnish markets. On a rolling 12-month basis, net sales amounted to SEK 41,915 M, compared with SEK 40,808 M for full-year 2000. A loss of SEK 330 M was reported after net financial items for January - March 2001. For comparable units, the loss for the first quarter of 2000 amounted to SEK 314 M (pro forma). Net financial items amounted to an expense of SEK 161 M (expense: 102) and were mainly affected by exchange- rate differences and increased investments in land compared with the first quarter of 2000. First-quarter earning were adversely affected by exchange-rate effects and initial costs for investments in the newly formed NCC Telecom business area. These negative effects were offset by improved earnings within NCC Contracting and NCC Property Development. Seasonal variations, which were accentuated by the acquisition of Rieber Roads during 2000, had a considerable adverse impact on NCC's first- quarter earnings. On a rolling 12-month basis, profit after financial items amounted to SEK 1,135 M, excluding items affecting comparability, which is approximately in line with the SEK 1,151 M reported for full-year 2000. Investments and financing Cash flow, before investments, was negative in an amount of SEK 467 M (neg: 137). The Group's gross investments in real estate amounted to SEK 1,180 M (1,142), of which property development projects accounted for SEK 727 M (335) and housing projects accounted for SEK 206 M (416). The Group's gross investments in other fixed assets amounted to SEK 568 M (415). Cash flow after investments was negative in an amount of SEK 669 M (neg: 114). On March 31, 2001, NCC's net indebtedness (interest-bearing liabilities less liquid assets less interest-bearing receivables) amounted to SEK 8,835 M (5,331). The increase was due mainly to the acquisition of Rieber Roads and higher investments in land held for future development. On December 31, 2000, net indebtedness totaled SEK 8,118 M. On March 31, 2001, the equity/assets ratio was 28 percent (32), one percentage point higher than at year-end 2000. Cash flow Jan- Jan- Jan- SEK M March March Dec 2001 2000 2000 From continuing -603 -69 815 operations Change in working 136 -68 -505 capital Net from operations -467 -137 310 Investing operations -202 23 -2 635 Cah flow before -669 -114 -2 325 financing Financing operations 387 196 2 161 Cash flow during the -282 82 -164 period Liquid assets, 2 207 2 371 2 371 beginning of the year Liquid assets, end 1 925 2 453 2 207 of period BUSINESS AREAS As of January 1, 2001, NCC is divided into six business areas: NCC Contracting, NCC Housing, NCC Property Development, NCC Industry, NCC Telecom and NCC Service. As a result of this change, a larger proportion of what were previously Group-wide costs are now allocated to the various business areas. The acquisition of Rieber Roads, which became effective on November 1, 2000, is included pro forma for full-year 2000. This mainly has an impact on the Industry business area. In order to facilitate comparisons with previous years, comparative figures (pro forma) are presented for each business area as if the changes had been implemented during 2000. NCC Contracting NCC Contracting was formed on January 1, 2001 through the merger of NCC Civil Engineering and NCC Building into a single business area. In connection with the organizational change, two new business areas - NCC Telecom and NCC Service, whose operations had previously been conducted mainly within NCC Building - were formed. As a result of the organizational change, most of NCC's contracting operations are now conducted within one business area, namely NCC Contracting. The market for construction investments in the Nordic and Baltic Sea region has shown stable, albeit modest, growth during recent years. Investments are expected to rise by approximately 1 percent in 2001 and by about 3 percent in 2002 (according to the Swedish Construction Federa tion). A common feature in all of the Nordic countries is that construction investments are concentrated in metropolitan regions. The demand trend in the Nordic building market is reflected in the orders received by NCC Contracting during the first quarter of 2001, which rose by 29 percent compared with the year-earlier period to SEK 8,856 M (6,841). Building operations in Sweden, Denmark and Norway accounted for most of the growth. NCC's strategy of raising the share of project-development activities - that is, to sharpen its focus on projects in which NCC can assume greater responsibility for the total outcome - contributed to the increase. Net sales rose by 16 percent to SEK 6,508 M (5,601), with particularly favorable sales growth noted in Finland and Denmark during the quarter. An operating loss (EBIT) of SEK 110 M was reported for the quarter. For comparable units, the loss for the first quarter of 2000 amounted to SEK 139 M (pro forma). The actions taken in 2000 to boost profitability have started to generate effects. The most tangible improvement in earnings is noticeable in Sweden, although improvements are also being noted in Denmark and Finland. On the whole, the business area's earnings from contracting operations improved by approximately SEK 50 M. With respect to the specialist and other operations conducted in the business area, the main earnings improvement was noted for the associated company A- Train, with NCC's share of this company's loss amounting to SEK 11 M (loss: 35). NCC International's first-quarter earnings were weaker than in the year-earlier period. This company's earnings can fluctuate sharply from quarter to quarter due to the completion of major projects. NCC Contracting Quarterly figures 12-months figures Q1, 2001 Q1, 2000 Q2, 2000 Q3, Q4, Apr Jan.- 2000 2000 2000- Dec. March 2000 2001 Or 8 856 6 841 9 872 6 294 10 992 36 014 33 999 de rs re ce iv ed , SE K M Or 22 733 19 454 18 422 17 879 20 195 22 733 20 195 de r ba ck lo g, re ma in in g to be wo rk ed up , SE K M Ne 6 508 5 601 7 207 6 966 9 147 29 828 28 921 t sa le s, SE K M Op - 110 - 139 39 91 - 59 - 39 - 68 er at in g pr of it /l os s (E BI T) , SE K M Op -1,7 -2,5 0,5 1,3 -0,6 -0,1 -0,2 er at in g ma rg in (E BI T) , % Ne -1,5 -2,1 0,8 1,6 -0,3 0,1 0,1 t ma rg in , % Op -96 -99 59 109 -30 42 39 er at in g pr of it /l os s (E BI T) , ex cl . BO T, SE K M Op -1,5 -1,8 0,8 1,6 -0,3 0,1 0,1 er at in g ma rg in (E BI T) , ex cl . BO T, % Ne -1,3 -1,4 1,1 1,9 0,0 0,4 0,4 t ma rg in , ex cl . BO T, % Re 5,9 4,9 tu rn on ca pi ta l em pl oy ed , % NCC Housing The market for residential construction remained favorable during the quarter, particularly in metropolitan areas of the Nordic region. Demand for new housing was especially large in Stockholm, and the market was also strong in Oslo and central Copenhagen. Market conditions in Helsinki remained favorable, although signs of a slight slowdown were noticeable. A slight weakening of market conditions was noted in Berlin/Brandenburg. Orders received rose by 21 percent to SEK 2,160 M (1,789). The increase was mainly attributable to Sweden, where new projects were started up in such locations as Hammarby Sjöstad, Stockholm. Total orders received in other Nordic markets also rose, while a decline occurred in Germany. During the first quarter, the number of total-package housing starts was approximately 600 (420). At March 31, 2001, NCC Housing owned development rights corresponding to about 19,000 housing units, an increase of some 2,000 compared with year-end 2000. Net sales rose by 27 percent to SEK 1,401 M (1,105). The volume increase was mainly attributable to Denmark, where the previously acquired operations within Bülow and Nielsen developed favorably. NCC Housing reported operating profit (EBIT) of SEK 53 M (40), an increase of 32 percent. The largest earnings increase was noted in Sweden, where volume growth made a favorable contribution during the first quarter. NCC Housing Quartely 12-month figures figures SEK M Q1, Q1, Q2,20 Q3, Q4,2000 Apr Jan.- 2001 2000 00 2000 2000- Dec. March 2000 2001 Or 2 160 1 789 1 497 885 1 090 5 632 5 261 de rs re ce iv ed , SE K M Or 5 802 4 776 4 921 4 837 4 516 5 802 4 516 de r ba ck lo g, re ma in in g to be wo rk ed up , SE K M Ne 1 401 1 105 1 446 1 030 1 785 5 662 5 366 t sa le s, SE K M Op 53 40 77 13 78 220 207 er at in g pr of it /l os s (E BI T) , SE K M Op 3,8 3,6 5,3 1,2 4,4 3,9 3,9 er at in g ma rg in (E BI T) , % Ne 2,0 2,2 3,9 0,6 3,9 2,8 2,9 t ma rg in , % Re 11,2 10,9 tu rn on ca pi ta l em pl oy ed , % NCC Property Development Conditions are favorable in the markets where NCC mainly conducts its property development operations. The favorable conditions apply in both the rental and the investor market. A slight stabilization of rent levels and in the required yield has been noted recently. During recent years, the rental market in the Nordic region, where most of NCC's projects are located, has been characterized by strong demand and low vacancy rates. This has driven up rents in the Nordic capitals' central business districts, resulting in record rent levels in 2000. In view of the general economic slowdown combined with an increase in new production of offices in high-growth regions, more restrained growth in rents is expected in the future, as is a stabilization of rents at a slightly lower level than that prevailing today. The investment market in the locations served by NCC remained strong during the quarter. A certain degree of caution was noted, due to uncertainty regarding the general economic trend. NCC has concluded that demand will remain favorable. The required yield for premises in the Nordic capitals varied at year-end from 6.0 percent in inner-city Stockholm to 7.0 in central Oslo. In Helsinki, an increase in the required yield to 6.75 percent is an indication of expectations that growth in rents will diminish in the future. In Stockholm, office rents appear to have peaked and demand for prime office space has declined. On the other hand, interest in office space in less central parts of the inner city has increased. The vacancy rate is assumed to have reached its lowest level and a slight increase is expected in the next few years. Sales within NCC Property Development (formerly NCC Real Estate) amounted to SEK 285 M (197), mainly deriving from rental revenue from managed properties. Operating profit (EBIT) amounted to SEK 192 M (163). Profit during the first quarter of 2001 consisted mainly of project- development gains. Earnings during the corresponding period of the preceding year mainly comprised gains on sales of managed properties, including a gain of SEK 114 M on the sale of the associated company Vasaterminalen. Sales volume within property development operations amounted to SEK 366 M (152), resulting in operating profit of SEK 129 M (loss: 7), after administrative costs and other items. Construction-initiated and construction-approved projects amounted to SEK 8.3 billion on March 31, 2001 in terms of total project costs. Costs incurred in the projects to date amount to SEK 3.2 billion, corresponding to 39 percent of the total project costs, which is 3 percentage points higher than at year-end. Compared with year-end 2000, the leasing rate rose by 5 percentage points during the quarter to 34 percent. The total portfolio of construction-initiated and planned projects on March 31, 2001 amounted to SEK 16.2 billion, compared with SEK 15.4 billion at year-end. During January - March 2001, the business area sold managed properties with a total sales value of SEK 38 M (542), yielding combined capital gains of SEK 13 M (99). On March 31, 2001, the book value of managed properties was SEK 4,459 M (5,557). This corresponds to an increase of SEK 145 M compared with year-end, mainly as a result of investments in properties with considerable development potential. Rental revenues during January - March amounted to SEK 133 M (157). The decline in rental revenues was a direct effect of the reduced volume of managed properties. The operating net was SEK 79 M (101) and the visible yield 7.2 percent (7.1). Operating profit from property management operations dropped to SEK 50 M (71). On March 31, 2001, the vacancy rate in terms of floor space in the portfolio of wholly owned properties was 6 percent (5). The vacancy rate has declined by 1.3 percentage points since year-end. Net financial items for NCC Property Development as a whole amounted to an expense of SEK 46 M (expense: 57). The improved financial net was mainly attributable to the reduction in capital tied up in managed properties. NCC Property Quarterly figures 12-month Development figures Q1, Q1, Q2, Q3, Q4, April Jan- 2001 2000 2000 2000 2000 2000- Dec SEK M March 2000 2001 Property development - Sales revenues 366 152 404 1 021 1 451 3 242 3 028 - Book value -226 -138 -207 -1 -1 -2 690 -2 004 253 602 - Sales expenses 8 -2 -52 34 -4 -14 -24 - Other expenses -20 -23 -9 -3 -27 -59 -62 - Associated and 1 4 -2 4 33 36 39 other companies Operating 129 -7 134 52 200 515 379 profit/loss, property development Sales of managed properties - Sales revenues 38 542 217 235 1 179 1 669 2 173 - Book value -29 -545 -222 -230 -863 -1 344 -1 860 - Sales expenses -5 -11 -13 -7 -35 -60 -66 - Associated and 9 113 45 54 158 other companies Operating 13 99 -18 -2 326 319 405 profit/loss, property sales managed properties Property management -Operating net 79 101 101 100 80 360 382 - Administrative -29 -34 -32 -28 -96 -185 -190 expenses - Associated and 4 -4 -4 other companies Operating 50 71 69 72 -20 171 192 profit/loss, Property Management Operating profit, 192 163 185 122 506 1 005 976 NCC Property Development Net financial -46 -57 -22 -67 -58 -207 -204 items Profit after net 146 106 163 55 448 798 772 financial items, NCC Property Development NCC Industry After the acquisition of Rieber Roads, NCC Industry is the largest player in the Nordic market for asphalt and aggregates. Conditions in NCC Industry's markets vary considerably depending on geographic location and the products concerned. The asphalt market in Denmark and Norway has stabilized and prices have improved, which is in line with the expectations NCC had in connection with the acquisition of Rieber Roads. However, competition in the Swedish market has increased. Competition has also intensified in several segments of the markets for aggregates and concrete. The trend in the machinery market was favorable, particularly in Denmark and Sweden. NCC Industry's net sales rose 10 percent to SEK 940 M (854). The increased volume was attributable to machinery operations in Denmark and Sweden and growth in newly established markets, particularly in the Baltic countries. The depreciation of the Swedish krona also accounted for a part of the sales increase noted outside Sweden. NCC Industry reported an operating loss (EBIT) of SEK 288 M for January- March 2001. For comparable units, the loss noted in the first quarter of 2000 amounted to SEK 259 M (pro forma). The increased loss was due mainly to exchange-rate effects (approx. SEK 10 M) and lower earnings from participations in associated companies (approx. SEK 10 M) due to the sale of RGS 90 in the preceding year. Underlying earnings were virtually unchanged compared with the year-earlier period. As a result of the acquisition of Rieber Roads, the proportion of the business area's operations that is exposed to major seasonal variations increased by slightly more than 50 percent. NCC Industry is expected to report improved full-year earnings for 2001 compared with 2000. The acquisition of Rieber Roads is expected to develop in line with the figures contained in the acquisition calculation. NCC Industry Quarterly figures 12-month figures Q1, Q1, Q2, Q3, Q4, Apr Jan.- 2001 2000 2000 2000 2000 2000- Dec. March 2000 2001 Or 1 022 879 1 998 2 260 1 853 7 133 6 990 de rs re ce iv ed , SE K M Or 114 55 69 68 108 114 108 de r ba ck lo g, re ma in in g to be wo rk ed up , SE K M Ne 940 854 1 984 2 262 1 809 6 995 6 909 t sa le s, SE K M Op - 288 - 259 226 326 207 471 500 er at in g pr of it /l os s (E BI T) , SE K M Op -30,7 -30,4 11,4 14,4 11,4 6,7 7,2 er at in g ma rg in (E BI T) , % Ne -36,3 -35,9 8,8 12,2 8,1 3,5 4,2 t ma rg in , % Re 9,7 10,4 tu rn on ca pi ta l em pl oy ed , % NCC Telecom NCC Telecom was formed on October 1, 2000. Prior to that date, its operations were conducted in the former NCC Building and NCC Civil Engineering business areas. In the Nordic region, operations are conducted in separate units for Mobile Networks (build-out of GSM and UMTS networks) and Fixed Networks (build-out primarily of broadband). In Sweden, the initiation of work on the build-out of third-generation mobile networks (UMTS) has been delayed. The delay, estimated at six to nine months, is affecting NCC's activities in Mobile Networks, since it has resulted in a deferral of the orders expected for the business area during 2001. NCC's assessment of the long-term market trend remains unchanged, which indicates possible future volume of SEK 2 - 4 billions per year. An intensive tendering process is currently under way in Sweden and NCC's prospects for securing orders are regarded as favorable. NCC is also participating in the tendering process under way in Norway. The build-out process has yet to be initiated in Finland and UMTS licenses will not be awarded in Denmark until the end of 2001. Active tendering work is also in progress outside the Nordic region. In the Fixed Networks unit, NCC focuses mainly on city and property networks. Discussions with a number of customers and partners are under way. Orders received by NCC Telecom amounted to SEK 173 M (84). The order volume was lower than expected, due to the delayed tendering process in Sweden. The increase compared with the year-earlier period was due to framework contracts concluded by Danish operations. Net sales amounted to SEK 58 M (38), which derived mainly from the continued build-out of existing GSM networks. NCC Telecom reported an operating loss (EBIT) of SEK 18 M for January- March 2001. For comparable units, the loss for the first quarter of 2000 amounted to SEK 0.4 M (pro forma). The loss for the first quarter of 2001 was due to costs for building up the business area, which include tendering expenses. NCC Telecom Quarterly figures 12-months figures Q1, Q1, Q2, Q3, Q4, Apr Jan.- 2001 2000 2000 2000 2000 2000- Dec. March 2000 01 Or 173 84 33 43 48 297 208 de rs re ce iv ed , SE K M Or 158 45 42 117 14 158 14 de r ba ck lo g, re ma in in g to be wo rk ed up , SE K M Ne 58 38 37 38 90 223 203 t sa le s, SE K M Op -18 0 -1 3 -13 -29 -11 er at in g pr of it /l os s (E BI T) , SE K M Op -31,0 -1,1 -2,1 7,2 -14,7 -13,0 -5,9 er at in g ma rg in (E BI T) , % Ne -31,5 -1,1 -1,2 7,6 -13,3 -12,4 -4,9 t ma rg in , (% ) NCC Service NCC Service was formed on January 1, 2001. At present, operations are only under way in Sweden. The business area is divided into two units: Building Services, an established activity previously conducted within the former Building business area, and Facility Management, which is in a build-up phase and is expected to start up operations during 2001. NCC Service is expected to experience favorable growth in the future. Demand for building services remained favorable during the period, particularly in metropolitan regions. Continued growth is expected in the sector. Orders received by NCC Service amounted to SEK 397 M (293) during January-March. In relation to the year-earlier period, this corresponds to an increase of 35 percent for comparable units. Metropolitan regions accounted for most of the increase. NCC Service Quarterly figures 12-month figures Q1, Q1, Q2, Q3, Q4, Apr Jan.- 2001 2000 2000 2000 2000 2000- Dec. March 2000 2001 Or 397 293 322 296 331 1 346 1 242 de rs re ce iv ed , SE K M Or 207 236 277 169 154 207 154 de r ba ck lo g, re ma in in g to be wo rk ed up , SE K M Ne 355 225 281 305 346 1 287 1 157 t sa le s, SE K M Op 1 -5 -1 -4 10 6 0 er at in g pr of it /l os s (E BI T) , SE K M Op 0,3 -2,1 -0,3 -1,5 2,9 0,5 0,0 er at in g ma rg in (E BI T) , % Ne 0,0 -2,6 -0,8 -2,1 2,7 0,1 -0,4 t ma rg in , % NVS NVS is a wholly owned subsidiary active in the market for heating and plumbing installations. Orders received rose to SEK 638 M (449) and profit of SEK 8 M (4) was reported after net financial items. Parent Company The Parent Company reported invoiced sales of SEK 5,155 M (6,059). Loss of SEK 148 M (profit 115) was reported after net financial items. The average number of employees was 10,149 (9,986). NCC AB's repurchase of own shares The Annual General Meeting on April 3, 2001 provided the Board with renewed authorization to repurchase a maximum of 10 percent of the total number of NCC shares. Since the original repurchase authorization was granted at the 2000 Annual General Meeting, NCC has repurchased 3,474,589 Series B shares at an average price of SEK 73.64, corresponding to 3.2 percent of the total number of shares. Accounting principles The financial statements comply with the Financial Accounting Standards Council's recommendations. The balance sheet at December 31, 2000 has been adapted to the Financial Accounting Standards Council's Recommendation No. 9, Income Taxes. Application of the recommendation required an adjustment of shareholders' equity at December 31, 2000, as shown in the "Changes in shareholders' equity" item. For a more detailed account of the accounting principles and other definitions applied in this interim report, reference is made to NCC's Annual Report for 2000. Significant events after period end Alf Göransson, new President and Chief Executive Officer of NCC NCC AB's Board of Directors has appointed Alf Göransson as new President and Chief Executive Officer of the NCC Group. Alf Göransson, aged 43, has a degree in international economics from the University of Gothenburg and is currently President and Chief Executive Officer of Svedala Industri AB. From 1981 to 1993, Alf Göransson held various executive positions within the Cardo Group. During 1993-1998, he was president of Swedish Rail Systems AB, a contracting company that was part of the Scancem Group. During 1998-2000, he was president of the Cardo Rail business area. Alf Göransson will assume office at NCC not later than autumn 2001. Major real estate transaction with Vasakronan In May, after the close of the report period, NCC reached an agreement with Vasakronan regarding a major real-estate transaction in Stockholm. NCC is to sell half of its Kista Science Tower project to Vasakronan, which will generate a capital gain of SEK 118 M for NCC. The agreement includes an option to sell the remainder of the project on completion. NCC and Vasakronan will form a joint company for the utilization of development rights at Ursvik in Sundbyberg, Stockholm. It is anticipated that the agreement will result in NCC accounting for a considerable proportion of the development of a new urban district comprising ap proximately 2,800 residential units and 120,000 square meters of office space. Decision regarding investment in Kista Residence Tower NCC's Board has approved an approximately SEK 770 M investment in the construction of Kista Residence Tower. An apartment and office hotel will account for most (about 80%) of the new 30,000-square-meter property. A letter of intent has been signed regarding the leasing of 80 percent of total floor space. Solna, May 8, 2001 Jan Sjöqvist President and Chief Executive Officer This interim report is unaudited. NCC's interim report on the first six months of 2001 will be published on August 24, 2001. If you have any questions, please contact: Björn Andersson, Chief Financial Officer (Tel: +46-8-585 520 40, or +46- 70-627 65 92); Hans-Olof Karlsson, Senior Vice President Corporate Communications (Tel: +46-8-585 522 79, or +46-70-547 12 50); or Annica Gerentz, Investor Relations Manager (Tel: +46-8-585 522 04, or +46-70-398 42 09, annika.gerentz@ncc.se). A breakfast meeting will be held on May 9, starting at 9.30 a.m. in NCC's Infoforum auditorium at Vallgatan 5, Solna. Notification of attendance should be sent by e-mail to anita.sundell@ncc.se. Parallel with the breakfast meeting, a telephone conference will be held. Presentations will be made in Swedish. To participate in the telephone conference, call +44 20 82 40 82 41. It will be possible to listen to the telephone conference in real time on www.ncc.se. Swedish and English versions of the material presented at the capital markets meeting will be downloadable from the www.ncc.se website as of approximately 9.00a.m. on May 9. INCOME STATEMENT Pro Pro forma forma Jan- Jan- Apr Jan.- Jan.- March. March. 2000- Dec. Dec. SEK m. 2001 2000 March 2000 2000 2001 Net sales 9 007 7 900 41 915 40 808 38 728 1) Production -8 295 -7 384 -37 -36 -34 and 456 545 641 management expenses Gross 712 516 4 459 4 263 4 087 profit Selling and -901 -820 -3 708 -3 627 -3 457 administrat ive expenses Refund of 912 912 912 SPP contributio ns Result from 37 2 675 640 640 sales of properties Result from -24 -27 26 23 23 participati ons in associated companies Result from -1 -1 -1 sales of participati ons in Group companies Result from 7 117 161 271 271 sales of participati ons in associated companies Revaluation -60 -60 -60 of properties Operating -169 -212 2 464 2 421 2 415 profit/loss Result from 143 -75 459 241 241 financial fixed assets Result from 47 309 262 262 financial current assets Interest -351 -27 -1 185 -861 -765 expenses and similar income statement items Profit/loss -330 -314 2 047 2 063 2 153 after financial items Tax on 99 42 -594 -651 -651 profit for the period 2) Minority 1 2 -5 -4 -4 interests Net -230 -270 1 448 1 408 1 498 profit/loss for the period 1 Net sales within Contracting Operations are reported in accordance with the percentage of completion method and are matched by earned revenues during the period. These revenues are reported in phace with the rate of completion of building project in the Company. For real estate operations, net sales correspond to rental revenues, interest sub sidies, etc. For other operations, net sales correspond to invoicing for the year. 2 Estimated full tax has been taken into account. BALANCE SHEET Pro Pro forma forma March 31 March Dec 31, Dec 31, 31 SEK M 2001 2000 2000 2000 Managed 4 745 5 545 4 557 4 557 properties Investments 4 599 3 345 3 897 3 897 in progress Buildings 1 216 943 1 155 1 155 and land Tangible 6 598 5 930 6 570 6 570 and intangible fixed assets Share and 1 338 1 071 1 193 1 160 participati ons Properties 2 456 2 118 3 152 3 152 held for future development Inventories 690 678 722 722 Interest- 1 613 1 487 1 389 1 389 bearing receivables Interest- 9 703 7 463 11 994 11 884 free receivables Liquid 1 925 2 621 2 207 2 207 assets Total 34 883 31 201 36 836 36 693 assets Shareholder 9 732 9 951 9 815 9 971 s´ equity Minority 18 15 20 20 interests Interest- 12 365 11 141 11 833 11 714 bearing liabilities and provisions Interest- 10 877 8 388 12 535 12 355 free liabilities and provisions Project 1 891 1 706 2 633 2 633 invoicing not yet worked up Total 34 883 31 201 36 836 36 693 Shareholder s equity and liabilities Assets 1 626 1 626 pledged Contingent 6 137 6 137 liabilities Net sales and earnings by business area Net Operating profit/loss sales (EBIT) Jan- Jan- Apr Jan- Jan- Jan- Apr Jan- March March 2000- Dec March March 2000- Dec SEK M 2001 2000 March 2 000 2001 2000 March 2 000 2001 2001 NCC Contracting 6 508 5 601 29 828 28 - 110 - 139 - 39 - 68 921 NCC Housing 1 401 1 105 5 662 5 366 53 40 220 207 NCC Property 285 197 995 907 192 163 1 005 976 development NCC Industry 940 854 6 995 6 909 - 288 - 259 471 500 NCC Telecom 58 38 223 203 - 18 0 - 29 - 11 NCC Service 355 225 1 287 1 157 1 - 5 6 Total 9 547 8 020 44 990 43 - 170 - 200 1 634 1 604 463 NVS 490 379 1 873 1 762 6 1 62 57 Other and -1 030 - 499 -4 948 -4 - 5 - 13 - 144 - 152 eliminations 417 9 007 7 900 41 915 40 - 169 - 212 1 552 1 509 808 Items affecting comparability (2000: Refund of 912 912 SPP contributions) Group 9 007 7 900 41 915 40 - 169 - 212 2 464 2 421 808 Ke y da ta Pro Pro forma forma Jan- Jan- Apr Jan-Dec Jan-Dec March March 2000- 2001 2000 March 2000 2000 01 Sh ar e da ta * Sh 92,10 91,75 92,75 92,85 94,40 ar eh ol de rs ´ eq ui ty , SE K pe r sh ar e Pr -2,20 -2,50 13,65 13,15 14,00 of it /l os s af te r fu ll ta x, SE K pe r sh ar e Pr of it /l os s af te r fu ll ta x ex cl . -2,20 -2,50 7,65 7,20 8,00 It em s af fe ct in g co mp ar ab il it y, SE K pe r sh ar e Di 4,00 vi de nd , SE K pe r sh ar e Nu mb er of sh ar es 105,7 108,4 106,2 107,0 107,0 av er ag e du ri ng th e pe ri od , mi ll io ns 105,7 108,4 105,0 105,7 105,7 at pe ri od- en d, mi ll io ns Ra ti os Re tu rn on eq ui ty 15 14 16 af te r fu ll ta x, % Re tu rn on eq ui ty 9 8 9 af te r fu ll ta x, ex cl . It em s af fe ct in g co mp ar ab il it y, % Re 13 13 14 tu rn on ca pi ta l em pl oy ed , % Re tu rn on ca pi ta l em pl oy ed , ex cl . 9 9 9 it em s af fe ct in g co mp ar ab il it y, % Eq 28 32 28 27 27 ui ty /a ss et s ra ti o, % Eq ui ty /a ss et s ra ti o, ex cl . 28 32 27 26 26 it em s af fe ct in g co mp ar ab il it y, % Sh 30 34 30 29 30 ar e of ri sk- be ar in g ca pi ta l, % Sh ar e of ri sk- be ar in g ca pi ta l, ex cl . 30 34 29 28 29 it em s af fe ct in g co mp ar ab il it y, % Average interest rate, 5,5 5,3 5,5 excl. pension liability Average period of 1,3 2,2 1,6 fixed interest, years Personnel Average number of 25 150 21 25 192 employees 403 Re al Es ta te op er at io ns Va 6 5 6 7 7 ca nc y ra te , fl oo r sp ac e, at pe ri od en d, % Vi 7,2 7,1 7,3 7,3 si bl e yi el d, ex cl . ad mi n co st s, % * Calculation of key data is based on the average number of shares during the period. Reconciliation of shareholders´ equity at March 31, 2001 Closing balance, December 9 971 31, 2000 Adjustment due to changed 24 accounting principle Translation differences 15 Net profit for the year -230 Share repurchases -48 Closing balance, March 9 732 31, 2001 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/09/20010508BIT01540/bit0001.doc http://www.bit.se/bitonline/2001/05/09/20010508BIT01540/bit0001.pdf