NCC Group´s pro forma accounts for January-June 2001

NCC Group's pro forma accounts for January-June 2001 The NCC Group's interim report for the period January-June 2002 will be released around lunchtime on Wednesday, August 21. Due to organizational changes and changed accounting principles, comparative pro forma figures concerning the consolidated accounts for January-June 2001 are being presented in this press release. In addition to the statutory accounts, NCC also reports its results excluding items affecting comparability, in order to provide a clear account of the Group's development. Items affecting comparability are defined as items that do not normally arise within the Group, such as the refund of pension contributions from Alecta (formerly SPP), which affected the accounts for 2000. During 2001, changed accounting principles, goodwill write-downs and restructuring costs were regarded as items affecting comparability. In 2002, the capital gain on the sale of NVS is considered an item affecting comparability. The earnings ratios excluding items affecting comparability referred to by NCC in interim reports are operating profit (EBIT) and profit after financial items (EBT). For 2001, this means that earnings from NVS (which was sold during 2002) have been excluded from operating profit and profit after financial items2) . Comparative figures for 2001: April-June Jan-June Jan-Dec Orders received, SEK M 12,644 25,243 50,647 Net sales, SEK M 11,752 20,863 47,521 Operating profit/loss, SEK M 535 366 -1,536 excluding items affecting comparability 2) 510 335 137 Profit/loss after financial items, SEK M 458 128 -2,130 excluding items affecting comparability 2) 431 93 -465 Earnings per share, SEK 3.00 0.80 -21.60 excluding items affecting comparability 2) 2.75 0.50 -5.25 Return on capital employed, % Neg excluding items affecting comparability 2) Neg Income statement, pro forma 2001 The changed accounting principles have affected net sales, production and administrative expenses, gross profit and results from sales of properties. In addition, a new line has been added pertaining to results from property management (see accounting principles below). INCOME STATEMENT April-June Jan-June Jan-Dec SEK M 2001 2001 2001 pro forma pro forma pro forma Net sales 11,752 20,863 47,521 Production and management costs -10,443 -18,889 -43,711 Gross profit 1,309 1,974 3,810 Sales and administrative expenses -1,000 -1,896 -4,004 Result from property management 59 125 254 Result from sales of properties 138 151 229 Write-down of properties -140 Result from participations in 29 5 34 associated companies Result from sales of associated 7 13 companies Result from sales of Group companies 8 Items affecting comparability Gain on sale of NVS Write-down of goodwill -219 Changed accounting principles -329 Restructuring costs -1,192 Operating profit/loss 535 366 -1,536 Result from financial fixed assets 55 198 295 Result from financial current assets -56 -9 234 Interest expense and similar income- -76 -427 -1,123 statement items Profit/loss after financial items 458 128 -2,130 Tax on net result for the year -138 -39 -121 Minority interest -5 -4 -18 Net profit/loss for the period 315 85 -2,269 Information on pro forma accounts As of January 1, 2002, the NCC Group is divided organizationally into ten reporting units. When preparing the six-month accounts, the following figures in the business area accounts were adjusted compared with the pro forma figures presented in the first-quarter report. Quarterly figures Jan-Dec 01:Q1 01:Q2 01:Q3 01:Q4 2001 Construction Denmark Operating profit/loss (EBIT), MSEK -69 -26 Operating margin (EBIT), % -3.5 -0.4 Construction Norway Operating profit/loss (EBIT), MSEK -8 -24 2 -301 -331 Operating margin (EBIT), % -0.8 -2.1 0.2 -21.7 -7.1 Construction Germany Operating profit (EBIT), MSEK 21 12 Operating margin (EBIT), % 8.0 4.6 Roads Operating profit/loss (EBIT), MSEK -41 242 Operating margin (EBIT), % -1.7 3.0 The changes only affect the pro forma amounts for the above units and for the above periods. The figures presented for other units and periods remain unchanged. Refer to the interim report for a comprehensive description of the pro forma accounts. ACCOUNTING PRINCIPLES NCC's financial statements comply with the Financial Accounting Standards Council's recommendations. The new accounting principles that became effective on January 1, 2002 did not affect the financial accounts. 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. Buildings and land have been divided into Properties used in NCC's operations, Managed properties and 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 within property-development operations. 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 and Completed real estate projects (new category). For commercial 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" and reported 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. In addition, results from property management 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 are not depreciated according to plan. On the other hand, the value of these properties is adjusted, where applicable, based on acquisition or market value, whichever is lower. For further information, please contact: Annica Gerentz, Investor Relations Manager NCC AB, Tel +46 8 585 52204 or +46 70 398 4209 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/08/16/20020816BIT00230/wkr0001.doc http://www.waymaker.net/bitonline/2002/08/16/20020816BIT00230/wkr0002.pdf