NCC Group's pro forma accounts for 2001

NCC Group's pro forma accounts for 2001 As a result of NCC's new Group structure, which was introduced at the beginning of 2002, the NCC Group's interim reports will comprise earnings figures from ten reporting units. In addition, the financial accounts of real estate operations will be adapted to reflect NCC's focus on property development. The NCC Group's interim report on earnings during the first quarter of 2002 will be released on Friday, May 3. Due to the organizational changes that became effective at the beginning of the year, and various changes in accounting and reporting principles, pro forma figures are presented here - that is, figures based on the assumption that the changes made on January 1, 2002 applied throughout 2001. Since consolidated sales revenues have been affected by changes in accounting principles, sales figures are also presented pro forma. The Group's operating profit before depreciation (EBIT), profit after net financial items (EBT) and pretax profit are not affected by these changes. Pro forma accounts for business areas As of January 1, 2002, the NCC Group's public accounts are divided into results from ten reporting units (see below). The accounts below do not include items affecting comparability. In the legal accounts for 2001, consolidated profit was charged with items affecting comparability (restructuring costs, goodwill write-downs and changed accounting principles) totaling SEK 1,740 million. Construction units in the various countries comprise the Group's housing- development activities and the operations that conduct operations related to the building and civil-engineering sectors, with the exception of major civil engineering projects, which are included in International Projects. During 2001, NCC Construction's operations were divided into the Contracting, Housing, Telecom and Service business areas. International Projects comprises major Nordic and international civil engineering projects. These operations were included in the Contracting business area during 2001. Property Development consists of the Group's property-management and property-development operations, in which the focus is on project development. These operations are unchanged compared with the past, although the accounting principles governing them have been amended (see below). Roads consists of the production of aggregates, asphalt and ready-mixed concrete, as well as paving and road-marking activities (not civil engineering work for road construction, which is included in Construction). During 2001, most of Roads' operations were included in the Industry business area, as well as in Contracting (paving operations in Sweden). Altima comprises the Group's machinery-rental activities. During 2001, these activities were included in the Industry business area. ACCOUNTING PRINCIPLES Classification of properties - NCC Property Development Until December 31, 2001, NCC's property holdings and real estate projects within NCC Property Development were reported in the balance sheet as fixed assets under the heading Buildings and land. In the accounts, buildings and land were divided into: · Properties used in NCC's operations · Managed properties · Properties held for future development Until December 31, 2001, sales of properties and real estate projects were not included in NCC's net sales; they were reported as "result from sales of properties" within operating profit (after gross profit). As of January 1, 2002, only managed properties and properties used in NCC's operations are reported as fixed assets. Properties held for future development are reported as current assets, since NCC's intention is not to held these properties permanently but to sell (develop and sell) them. New acquisitions of properties intended for development and sale will be classified as current assets. In turn, properties held for development and sale (current assets) will be divided into: · Properties held for future development · Real estate projects in progress · Completed real estate projects (new category) For marketing reasons, the capital gain/loss on completed sales of real estate projects - although not of managed properties - will no longer be reported separately for individual transactions. Managed properties will continue to be reported as fixed assets. The intention is to divest these properties by the end of 2003 at the latest and no new projects will be added to this category. Income statement As of January 1, 2002, NCC's sales include revenues from sales of properties reported as current assets. Pro forma figures for 2001 have been recomputed accordingly. The reporting of gains/losses from sales of managed properties will remain unchanged, meaning as "result from sales of properties" within operating profit (after gross profit). As before, NCC's sales will also include rental revenues from properties held for development and sale. However, as of January 1, 2002, rental revenues from managed properties will be reported as a part of earnings from managed properties and will no longer be included in NCC's sales. Results from property management will consist of the operating net from the managed properties less depreciation according to plan. Valuation of properties reported as current assets Properties reported as current assets will not be depreciated according to plan. On the other hand, the value of these properties will be adjusted, where applicable, based on acquisition or market value, whichever is lower. Supplementary information regarding property sales A number of real estate projects were sold during the first quarter. The largest sale was of the Örnnästet 4 property in Jönköping. In the press release distributed on March 19 that described this transaction, it was stated erroneously that this sale would be reported in earnings during the second quarter of 2002. A number of smaller sales were also completed during the quarter. The largest sale of a managed property included in first-quarter earnings was of the Norra Sjukhuset property in Lund. The Taxeringsrevisorn 2 property in Malmö is also included among sales of managed properties. It was previously stated erroneously that the sale of Taxeringsrevisorn 2 would be reported in second-quarter earnings. See summary on following two pages! For further information, please contact: Annica Gerentz, Investor Relations Manager NCC AB, tel +46 585 52204, +46 70 398 4209 All of NCC's press releases are available on www.ncc.se NCC is one of the leading construction and property development companies in the Nordic region. NCC has annual sales of SEK 46 billion, with 28,000 employees. Pro forma quarterly figures per business area/unit, 2001 Construction Sweden Quarterly figures Full year Q1 Q2 Q3 Q4 2001 Orders received, SEK M 5 908 5 645 2 883 6 897 21 333 Order backlog, SEK M 10 793 12 074 10 676 11 142 11 142 Net sales, SEK M 4 171 4 795 4 195 5 986 19 147 Operating profit (EBIT), SEK 14 17 8 86 125 M Operating margin (EBIT), % 0,3 0,4 0,2 1,4 0,7 Construction Denmark Quarterly figures Full year Q1 Q2 Q3 Q4 2001 Orders received, SEK M 2 070 1 719 1 416 2 710 7 915 Order backlog, SEK M 4 577 4 549 4 198 4 820 4 820 Net sales, SEK M 1 337 1 717 2 014 1 990 7 058 Operating profit/loss (EBIT), SEK -25 37 31 -54 -11 M Operating margin (EBIT), % -1,9 2,2 1,5 -2,7 -0,2 Construction Finland Quarterly figures Full year Q1 Q2 Q3 Q4 2001 Orders received, SEK M 1 473 1 042 680 1 060 4 255 Order backlog, SEK M 3 615 3 381 3 048 2 667 2 667 Net sales, SEK M 1 144 1 280 1 196 1 340 4 960 Operating profit/loss (EBIT), 50 35 68 -4 149 SEK M Operating margin (EBIT), % 4,4 2,7 5,7 -0,3 3,0 Construction Norway Quarterly figures Full year Q1 Q2 Q3 Q4 2001 Orders received, SEK M 1 200 1 725 1 120 -9 4 036 Order backlog, SEK M 3 738 4 597 4 590 3 670 3 670 Net sales, SEK M 1 034 1 121 1 151 1 386 4 692 Operating profit/loss (EBIT), -14 -41 25 -369 -399 SEK M Operating margin (EBIT), % -1,4 -3,7 2,2 -26,6 -8,5 Construction Germany Quarterly figures Full year Q1 Q2 Q3 Q4 2001 Orders received, SEK M 285 -18 364 -290 341 Order backlog, SEK M 1 447 1 165 1 354 807 807 Net sales, SEK M 207 262 260 216 945 Operating profi/loss (EBIT), SEK -5 12 21 -291 -263 M Operating margin (EBIT), % -2,4 4,6 8,1 -134,7 -27,8 Construction Poland Quarterly figures Full year Q1 Q2 Q3 Q4 2001 Orders received, SEK M 2 313 219 13 547 Order backlog, SEK M 99 469 343 282 282 Net sales, SEK M 26 30 236 320 612 Operating profit/loss (EBIT), -13 7 -4 -9 -19 SEK M Operating margin (EBIT), % -50,0 23,3 -1,7 -2,8 -3,1 International Projects Quarterly figures Full year Q1 Q2 Q3 Q4 2001 Orders received, SEK M 103 150 655 977 1 885 Order backlog, SEK M 3 240 2 935 3 412 3 860 3 860 Net sales, SEK M 237 459 348 450 1 494 Operating loss (EBIT), SEK M -15 -14 -1 -161 -191 Operating margin (EBIT), % -6,3 -3,1 -0,3 -35,8 -12,8 Property Development Quarterly figures Full year Q1 Q2 Q3 Q4 2001 Net sales, SEK M 389 458 576 905 2 328 Operating profit (EBIT), SEK M 193 307 159 55 714 Roads Quarterly figures Full year Q1 Q2 Q3 Q4 2001 Orders received, SEK M 1 069 2 601 2 429 2 232 8 331 Order backlog, SEK M 919 1 401 988 1 269 1 269 Net sales, SEK M 740 2 121 2 864 2 381 8 106 Operating profit/loss (EBIT), SEK -335 228 390 -76 207 M Operating margin (EBIT), % -45,3 10,7 13,6 -3,2 2,6 Altima Quarterly figures Full year Q1 Q2 Q3 Q4 2001 Orders received, SEK M 366 407 371 401 1 545 Order backlog, SEK M Net sales, SEK M 366 407 371 401 1 545 Operating profit (EBIT), SEK M 38 56 64 0 158 Operating margin (EBIT), % 10,4 13,8 17,3 10,2 CONSOLIDATED INCOME STATEMENT Jan-March Jan-Dec SEK M 2001 2001 pro forma pro forma Net sales 9 111 47 521 Production and management costs -8 466 -43 711 Gross profit 665 3 810 Sales and administrative expenses -896 -4 004 Result from property management 66 254 Result from sales of properties 13 229 Write-down of properties -140 Result from participations in associated companies -24 34 Result from sales of associated companies 7 13 Result from sales of Group companies 8 Items affecting comparability Write-down of goodwill -219 Changed accounting principles -329 Restructuring costs -1 192 Operating loss -169 -1 536 Result from financial fixed assets 143 295 Result from financial current assets 47 234 Interest expense and similar income-statement -351 -1 123 items Loss after financial items -330 -2 130 Tax on net result for the year 99 -121 Minority interest 1 -18 Net loss for the year -230 -2 269 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/04/30/20020430BIT00080/wkr0001.doc http://www.waymaker.net/bitonline/2002/04/30/20020430BIT00080/wkr0002.pdf