NCC Group pro forma 2008 and 2007

On Tuesday May 12, NCC will publish the interim report for the period January 1 to March 31, 2009. In view of the organizational changes implemented on January 1, 2009, this press release presents comparative pro forma figures for each quarter of 2008 and for full-year 2007.

Since 2002, NCC’s housing operations have been conducted within the framework of the Construction units in Sweden, Norway, Denmark, Finland and Germany. During the strong business climate of recent years, housing operations have expanded within the Group and NCC has become one of the largest housing producers in the Nordic region. NCC’s size and competencies create opportunities to further develop the business, and the Group’s assessment is that the developers of the future will face demands that differ from those placed on the developers who succeeded in the recent economic boom, and not just in the form of dealing with a weaker market. NCC aims to achieve greater leverage from synergies across national borders in terms of platforms, technology, marketing and the allocation of capital, while also exploiting and develop its competencies and experience in how the development business should be conducted.

As of January 1, 2009, NCC’s housing operations are combined in a single business area, NCC Housing, in order to increase their efficiency and strengthen them. Peter Wågström, the former President of NCC Property Development, is President of the new business area.

As of January 1, 2009, NCC’s business areas are NCC Construction Sweden, NCC Construction Denmark, NCC Construction Finland, NCC Construction Norway, NCC Housing, NCC Property Development and NCC Roads. NCC Construction Germany has ceased to be a separate business area and is now part of NCC Housing.

NCC Housing develops and sells housing in selected markets in the Nordic region, the Baltic countries and Germany. The business area is active at all stages of the residential-development value chain (from idea and analysis, investment in land, concept development, design and project execution to marketing and sales). The Construction units in the various countries (apart from Germany, where production is included in NCC Housing) are commissioned by NCC Housing to construct the housing units on commercial terms.

Assets and liabilities attributable to the housing business have been transferred from the Construction units to NCC Housing. The policy for profit recognition regarding housing projects remain unchanged (see Note 1 of the 2008 Annual Report). NCC Housing’s operating profit for 2008 includes costs of SEK 487 million for impairment losses on land and unsold housing units and of SEK 32 million for impairment of goodwill, as well as restructuring costs of SEK 106 million.

Attachement: pro forma pdf

For questions, please contact:
Ann-Sofie Danielsson, Chief Financial Officer; +46 (0)70-674 07 20
Johan Bergman, Investor Relations Manager; +46 (0)70-354 80 35