SWECO AB (publ) Year-end report 2008

Record profit and powerful growth

• Operating profit improved by 38 per cent to SEK 596.3 million (432.5).

• Operating margin was 10.8 per cent (9.5).

• Net sales increased by 21 per cent to SEK 5,522.8 million (4,569.5).

• Profit before tax was SEK 588.2 million (425.7).

• Profit after tax was SEK 402.9 million (303.3), equal to earnings per share of SEK 4.68 (3.53).

• The Board proposes a dividend of SEK 2.0 (2.00) per share.

Comments from CEO Mats Wäppling:

“In 2008 we recorded our best year ever with a dramatic improvement in earnings and an operating margin that rose to 10.8 per cent. The units in Sweden and Norway showed the strongest earnings growth. In the past year Sweco continued its expansion and strengthened its market positions in both the Nordic region and in Eastern and Central Europe.

“Demand has been particularly keen for services in the environment, energy and infrastructure areas, although we noted weaker demand in the construction sector and parts of the industrial sector toward the end of the year.

“Market conditions have continued to deteriorate, which is mainly affecting industrial and building-related consulting services, and we are adapting our resources as needed. At the same time, the outlook is bright in the majority of Sweco’s areas of operation. The fundamental drivers underlying demand for our services are population growth and urbanisation, a growing awareness of environmental and climate issues and modernisation of the new EU member states. These trends are creating new business opportunities and generating healthy demand primarily for environmental, energy and infrastructure services. Sweco’s strong market positions in these areas vouch for positive long-term development.

“Sweco’s growth strategy stands firm. Our healthy finances provide a platform for continued profitable growth in new markets in the years ahead.”