AFRY

Earnings Release • Jul 16, 2024

Improved profitability in a stable quarter

Second quarter 2024

• Net sales increased by 4.7 percent to SEK 7,191 million (6,869)
• Organic growth adjusted for calendar effects was 2.2 percent (10.8)
• Calendar effects had a positive impact of SEK 135 million on net sales and SEK 104 million on EBITA
• EBITA, excl. items affecting comparability, was SEK 572 million (421)
• EBITA margin, excl. items affecting comparability, was 8.0 percent (6.1)
• EBITA totalled SEK 572 million (398)
• EBITA margin was 8.0 percent (5.8)
• EBIT (operating profit) amounted to SEK 541 million (363)
• Earnings per share amounted to SEK 3.33 (1.77)

January–June 2024

• Net sales increased by 2.2 percent to SEK 14,082 million (13,784)
• Organic growth adjusted for calendar effects was 1.4 percent (13.2)
• Calendar effects had a negative impact of SEK 23 million on net sales and SEK 18 million on EBITA
• EBITA excl. items affecting comparability was SEK 1,162 million (1,110)
• EBITA margin, excl. items affecting comparability, was 8.3 percent (8.0)
• EBITA totalled SEK 1,154 million (1,087)
• EBITA margin was 8.2 percent (7.9)
• EBIT (operating profit) amounted to SEK 1,082 million (1,008)
• Earnings per share amounted to SEK 6.46 (5.62)

1) Excluding items affecting comparability.

Comment from the CEO

The second quarter shows an improved margin, driven by the ongoing improvement programme in Infrastructure and a positive calendar effect. The market is mixed, with strong demand in the energy sector and continued weak demand in pulp & paper and the real estate segment.

In the quarter, there was a strong demand in the energy sector, with continued investment in fossil-free electricity production, storage solutions, transmission and distribution. Within infrastructure, public investments in transport infrastructure are stable, while demand in the real estate segment remains weak. In the industrial sector, demand in pulp & paper is still at a low level. Demand from the automotive and life science industries is healthy, while the market for IT consultants is weak.

Net sales amounted to SEK 7,191 million in the second quarter, an increase of 4.7 percent compared to the same period last year. Organic growth adjusted for calendar effects increased sequentially to 2.2 percent. All divisions with the exception of Process Industries reported positive adjusted organic growth. The order stock was stable at SEK 20 billion.

EBITA, excluding items affecting comparability, amounted to SEK 572 million (421), corresponding to an EBITA margin of 8.0 percent (6.1). The calendar effect of nine more hours during the quarter, had a positive effect of SEK 135 million on net sales and SEK 104 million on EBITA compared to the previous year. This means that the EBITA margin was higher than last year, also once adjusted for calendar effects.

Cash flow from operating activities totalled SEK 420 million, and net debt/EBITDA was 2.6 at the end of the quarter.

The EBITA improvement in the second quarter was driven largely by Infrastructure, which had strong development. The improvement programme to further enhance profitability is proceeding according to plan. We see stability in the operations and a gradually improved utilisation rate. Energy and Management Consulting also contributed positively, with continued strong results during the quarter, driven by healthy demand and a strong position.

Process Industries continues to have healthy profitability but the margin was weaker, compared to previous year, due to lower demand in pulp & paper. Further measures to adapt capacity are being implemented and the division continues to strengthen the client offering to other segments. Industrial & Digital Solutions development was stable but continues to be affected by weak demand in certain segments.

AFRY is well-positioned in the ongoing energy and industrial transition and won several important projects during the quarter. An assignment to highlight is from Vattenfall to develop the technical analysis of the Juktan pumped power station in Sweden to meet the growing need for fossil-free energy. We also won a project to a food-tech company to build a factory in Sweden to produce the food of tomorrow.

We continue the work to strengthen our profitability, while at the same time developing our client offering.

Finally, I would like to thank our clients, partners and employees for great collaboration.

Jonas Gustavsson President and CEO

AFRY in short

AFRY provides engineering, design, digital and advisory services to accelerate the transition towards a sustainable society. We are 19,000 devoted experts in industry, energy and infrastructure sectors, creating impact for generations to come. AFRY has Nordic roots with a global reach, net sales of SEK 27 billion and is listed on Nasdaq Stockholm.

Business strategy

Strengthen position and profitability in infrastructure

Scale globally in decarbonisation, energy and biobased materials

Grow Nordic industrial and digital portfolio, expand internationally in niches

3

Pioneers of technology and leading partner in the sustainability transition

Increase client value

Drive operational excellence

Be the employer of choice

Who we are

Our vision

Making future

Our mission

We accelerate the transition towards a sustainable society

Our values

Brave Devoted Team players

Our people

Inclusive and diverse teams with deep sector knowledge

A clear vision

AFRY strives for profitable growth to generate long-term value for our shareholders and the society. The financial targets focus on growth, profitability and a strong financial position. The sustainability targets are key elements of our strategy. The targets focus on the development of sustainable solutions, responsible and ethical operations and our people.

Financial targets

• Annual growth of 10 percent. The target includes add-on acquisitions
• EBITA margin of 10 percent (excluding items affecting comparability)
• Net debt in relation to EBITDA of 2.5
• Dividend policy of approximately 50 percent of profit after tax excluding capital gains

Sustainability targets

• Increase taxonomy-eligible turnover
• 95 percent completion rate for sustainability training
• Halve CO₂ emissions by 2030 and achieve net zero emissions by 2040
• 95 percent completion rate for training in AFRY's Code of Conduct
• 40 percent female leaders by 2030
• Increase employee engagement

Net sales, SEK billion

27

Number of employees

19,000

Countries with projects

100

New assignments

Advisor for NRK:s new headquarters in Norway

AFRY, has signed an advisory contract with The Norwegian public broadcaster NRK for the development of their new headquarters in Oslo. The vision for the new headquarters is to develop a creative world-class media house. The assignment includes the delivery of project management and support, user involvement and, through the architects of AFRY Ark Studio, room and function program.

Partner for the new factory of future food

cReal, a Swedish food company, has patented its process and innovative solution for producing functional, oat-based powdered ingredients. For the construction of their first prduction plant for future food, they have chosen AFRY as their collaboration partner. AFRY will be responsible for the entire production process, installation, and commissioning.

Technical analysis for Juktan's pumped power station in Sweden

To meet the increasing need for fossil-free energy, Vattenfall is continuing to investigate the possibilities of the restoration and renewal of Juktan pumped power station. AFRY has contributed to the environmental impact statement and technical description for the application to the Land and Environment Court and has been awarded a contract for further work with the plant design of the pumped power station.

Financial summary

Second quarter Net sales

Net sales for the quarter amounted to SEK 7,191 million (6,869), an increase of 4.7 percent (15.0). Organic growth was 4.2 percent (9.4) and 2.2 percent (10.8) when adjusted for calendar effects.

EBITA

Adjusted for items affecting comparability, EBITA amounted to SEK 572 million (421). The corresponding EBITA margin was 8.0 percent (6.1). Items affecting comparability amounted to SEK 0 million (-23).

EBITA and the EBITA margin were SEK 572 million (398) and 8.0 percent (5.8) respectively.

Capacity utilisation

Capacity utilisation was 73.4 percent (74.2) for the quarter.

Operating profit/loss

EBIT totalled SEK 541 million (363). The difference between EBIT and EBITA consists of amortisation of acquisition-related non-current assets amounting to SEK -44 million (-45) and changes in the estimates of future contingent considerations totalling SEK 12 million (9). For more information, see alternative performance measures for EBITA on page 27.

Financial items

Profit after financial items was SEK 473 million (287) and profit after tax for the period was SEK 377 million (201). Net financial items for the quarter totalled SEK -68 million (-76). In addition to interest expenses, net financial items were affected positively by exchange rate differences.

Income tax

The tax expense amounted to SEK -96 million (-86), corresponding to a tax rate of 20.2 percent (30.0). The tax rate for the comparative period was affected by the divestment of operations in Russia and tax attributable to previous years.

Cash flow and financial position

Consolidated net debt including IFRS 16 Leases amounted to SEK 7,184 million (7,839).

Consolidated net debt excluding IFRS 16 Leases amounted to SEK 5,504 million (5,708) at the end of the quarter, and SEK 5,039 million (4,941) at the start of the quarter. Cash flow from operating activities reduced net debt by SEK 279 million (352) in the second quarter. During the quarter, SEK 623 million (623) was paid in dividends, as well as payments for holdback and contingent considerations for previous acquisitions totalling SEK 72 million, which increased net debt.

In the second quarter, a four-year bond of SEK 800 million was raised, and a bilateral bank loan of SEK 800 million was repaid. Also a previous convertible loan of SEK 149 million that matured in April was repaid, and a bond of SEK 918 million net that fell due in June. Commercial paper to the value of SEK 709 million was issued during the quarter as part of the company´s commercial paper programme.

Consolidated cash and cash equivalents totalled SEK 827 million (1,079) at the end of the period and unused credit facilities amounted to SEK 2,941 million (3,059).

	Q2 2024	Q2 2023	Jan–Jun 2024	Jan–Jun 2023	Full year 2023
Net sales
Net sales, SEK million	7,191	6,869	14,082	13,784	26,978
Total growth, %	4.7	15.0	2.2	18.4	14.5
(-) Acquired, %	0.4	1.0	0.7	0.9	1.1
(-) Currency effects, %	0.1	4.5	0.2	4.2	3.8
Organic, %	4.2	9.4	1.3	13.3	9.6
(-) Calendar effect, %	2.0	-1.4	-0.2	0.0	-0.6
Organic growth adjusted for calendar effects, %	2.2	10.8	1.4	13.2	10.2
Order stock, SEK million	–	–	19,944	20,590	19,329
Profit
EBITA excl. items affecting comparability, SEK million	572	421	1,162	1,110	2,032
EBITA margin excl. items affecting comparability, %	8.0	6.1	8.3	8.0	7.5
EBITA, SEK million	572	398	1,154	1,087	1,938
EBITA margin, %	8.0	5.8	8.2	7.9	7.2
Operating profit (EBIT), SEK million	541	363	1,082	1,008	1,779
Profit/loss after financial items, SEK million	473	287	944	855	1,441
Profit after tax, SEK million	377	201	732	636	1,100
Key ratios
Earnings per share, SEK	3.33	1.77	6.46	5.62	9.71
Cash flow from operating activities, SEK million	420	504	528	558	1,794
Net debt, SEK million1	–	–	5,504	5,708	4,868
Net debt/equity ratio, %1	–	–	43.4	45.5	39.1
Net debt/EBITDA, rolling 12 months, times1	–	–	2.6	2.6	2.4
Number of employees	–	–	18,532	19,187	18,984
Capacity utilisation, %	73.4	74.2	73.0	73.8	73.5

1) Excluding effects of IFRS 16 Leases.

Net debt/EBITDA excluding the effect of IFRS 16 and items affecting comparability over a rolling 12 months was 2.5 (2.6).

Significant events during the quarter

Decision at the Annual General Meeting At the Annual general meeting on April 23, Tom Erixon, Henrik Ehrnrooth, Neil McArthur, Kristina Schauman and Tuula Teeri were re-elected as Board members. Magnus Heimburg, Jenny Larsson and Åsa Pettersson were elected as new Board members. Furthermore, the AGM decided to re-elect Tom Erixon as Chairman of the Board.

January-June Net sales

Net sales for the period amounted to SEK 14,082 million (13,784), an increase of 2.2 percent (18.4). Organic growth was 1.3 percent (13.3) and 1.4 percent (13.2) when adjusted for calendar effects.

The order stock amounted to SEK 19,944 million (20,590), which is a decrease of 3.1 percent compared with the previous year.

EBITA

Adjusted for items affecting comparability, EBITA amounted to SEK 1,162 million (1,110). The corre sponding EBITA margin was 8.3 percent (8.0). Items affecting comparability amounted to SEK -8 million (-23) and related to costs for premature termination of leases and integration costs in connection with acquisitions. For more information, see alternative performance measures for EBITA on page 28.

EBITA and the EBITA margin were SEK 1,154 million (1,087) and 8.2 percent (7.9) respectively.

Capacity utilisation

Capacity utilisation was 73.0 percent (73.8) for the period.

Operating profit/loss

EBIT totalled SEK 1,082 million (1,008). The differ ence between EBIT and EBITA consists of amorti sation of acquisition-related non-current assets amounting to SEK -88 million (-88) and the change in estimates of future contingent consideration of SEK 12 million (9). For more information, see alternative performance measures for EBITA on page 28.

Financial items

Profit after financial items was SEK 944 million (855) and profit after tax for the period was SEK 732 million (636). Net financial items for the quarter totalled SEK -138 million (-153). In addition to interest expenses, net financial items were affected positively by exchange rate differences.

Income tax

The tax expense amounted to SEK -212 million (-219), corresponding to an effective tax rate of 22.5 percent (25.6). As in the comparative period, the tax rate was affected by tax attributable to previous years. The comparative period was also affected by the divest ment of operations in Russia.

Parent

The parent company's operating income during the period amounted to SEK 822 million (796) and relates primarily to internal services within the Group. Loss after net financial items was SEK -192 million (74). Cash and cash equivalents amounted to SEK 89 mil lion (281). As in the comparative period, the tax rate was impacted by non-deductible financial expenses.

Gross investments in intangible assets and property, plant and equipment totalled SEK 22 million (32).

Number of employees

The average number of full-time employees (FTEs) was 17,815 (18,212). The total number of employees at the end of the period was 18,532 (19,187).

Calendar effects

The number of normal working hours during 2024, based on a 12-months' sales-weighted business mix, is broken down as follows.

7

2024	2023	Difference
500	511	-11
485	476	9
526	517	10
494	498	-4
2,005	2,001	4

Shares

The AFRY share price was SEK 190.00 (159.20) at the end of the reporting period.

Class A shares	4,290,336
B shares	108,961,405
Total number of shares	113,251,741
Number of votes	151,864,765

Significant events after the end of the reporting period

No significant events after the end of the reporting period were identified.

Detailed information on significant events can be found at www.afry.com.

Divisions

Infrastructure

The division offers engineering and consulting services for buildings and infrastructure, for example in the areas of road and rail as well as water and environment. The division also operates in the fields of architecture and design. The division operates in the Nordics and Central Europe.

37% of net sales, 28% of EBITA

Industrial & Digital Solutions The division offers engineering and consulting services in the areas of product development, production systems & equipment, IT and defence. The division operates in all industry sectors with an emphasis on vehicles and food & pharma, and operates primarily in the Nordics.

24% of net sales, 20% of EBITA

Process Industries

The division offers engineering and consulting services, from earlystage studies to project implementation, in the areas of digitalisation, safety and sustainability solutions. The division operates in pulp and paper, chemicals, biorefining, mines and metals, as well as growth sectors such as batteries, hydrogen, textiles and plastics. The division operates globally.

20% of net sales, 28% of EBITA

Energy

The division offers engineering and consulting services in energy production from various energy sources such as hydro, gas, bio & waste fuels, nuclear power and renewable energy sources as well as services in transmission & distribution and energy storage. The division delivers solutions globally and has a leading position in hydropower.

13% of net sales, 16% of EBITA

Management Consulting

The division works to meet challenges and opportunities in the energy, bioindustry, infrastructure, industry and mobility sectors through strategic consulting, forward-looking market analysis, operational and digital transformation as well as M&A and transaction services. The division operates globally.

6% of net sales, 8% of EBITA

8

Net sales

Net sales during the second quarter amounted to SEK 2,771 million (2,601), an increase of 6.5 percent. Adjusted for calendar effects, the organic growth was 3.7 percent. The growth was driven by stable demand and higher average fees. The order stock is at a stable level.

EBITA and EBITA margin

EBITA amounted to SEK 213 million (103) and the corresponding margin was 7.7 percent (4.0). The margin was positively impacted by activities within the division's improvement programme that is proceeding according to plan. Adjusted for the calendar effects, the margin was higher than previous year.

Market development

The market is mixed with a continued weak demand in the real estate segment, while the demand within the industrial infrastructure segment is good. Public investments in transport infrastructure and the transition towards sustainable transport remain at a healthy level. Investments in water and environmental solutions remain stable in the division's markets and across various sectors.

Key ratios

	Q2 2024	Q2 2023	Jan– June 2024	Jan– June 2023	Full year 2023
Net sales, SEK million	2,771	2,601	5,440		5,230 10,216
EBITA, SEK million	213	103	429	363	657
EBITA margin, %	7.7	4.0	7.9	6.9	6.4
Order stock, SEK million	–	–	8,526	8,848	8,659
Average full-time equivalents (FTEs)	6,746	6,923	6,743	6,842	6,863
Organic growth
Total growth, %	6.5	13.1	4.0	14.4	13.0
(-) Acquired, %	0.0	0.9	0.4	0.6	0.8
(-) Currency effects, %	0.3	4.2	0.2	3.5	3.2
Organic, %	6.3	8.0	3.5	10.2	9.0
(-) Calendar effect, %	2.6	-1.5	-0.1	-0.1	-0.5
Organic growth adjusted for calendar effects, %	3.7	9.5	3.5	10.3	9.5

The historical figures above have been adjusted to account for organisational changes.

Division Industrial & Digital Solutions

Net sales

Net sales during the second quarter amounted to SEK 1,810 million (1,747), an increase of 3.6 percent. Adjusted for calendar effects, the organic growth was 1.8 percent. The growth was driven by a good activity in the automotive industry, manufacturing industry, and defence industry. The order stock is higher than previous year.

EBITA and EBITA margin

EBITA amounted to SEK 116 million (101) and the corresponding margin was 6.4 percent (5.8). The margin was positively affected by calendar effects, and sligthly improved utilisation rate, primarily driven by improved activity in the manufacturing industry. The weak demand in telecom and IT consultants continued to have a negative impact on the margin. Adjusted for calendar effects, the margin was slightly lower than the previous year.

Market development

The ongoing transition in the industry, driven by digitalisation and electrification, is resulting in a continued solid demand for design and development of products, services, and production capacity. The defence industry, automotive industry, and life sciences demonstrate strong demand, while the market within telecom, and IT consultants remains weak.

0 400

800

						120
						80
						40
Q1 23	Q2 23	Q3 23	Q4 23	Q1 24	Q2 24	0
		Net sales		EBITA

Net sales and EBITA, SEK million Key ratios

EBITA

160

200

	Q2 2024	Q2 2023	Jan– June 2024	Jan– June 2023	Full year 2023
Net sales, SEK million	1,810	1,747	3,600	3,560	6,790
EBITA, SEK million	116	101	281	283	464
EBITA margin, %	6.4	5.8	7.8	7.9	6.8
Order stock, SEK million	–	–	2,982	2,732	2,652
Average full-time equivalents (FTEs)	3,699	3,840	3,725	3,839	3,840
Organic growth
Total growth, %	3.6	9.4	1.1	12.5	6.5
(-) Acquired, %	0.0	0.0	0.0	0.0	0.1
(-) Currency effects, %	0.0	1.1	0.0	1.0	0.7
Organic, %	3.6	8.3	1.1	11.4	5.6
(-) Calendar effect, %	1.8	-1.4	0.0	0.0	-0.5
Organic growth adjusted for calendar effects, %	1.8	9.8	1.1	11.4	6.1

10

The historical figures above have been adjusted to account for organisational changes.

Net sales

Net sales in the second quarter amounted to SEK 1,397 million (1,457), a decrease by 4.1 percent. Adjusted for calendar effects, the organic growth was -5.9 percent. The decrease was driven by the lack of major investment projects, particularly in the pulp and paper segment, which has affected the division for several quarters. The order stock is lower than previous year.

EBITA and EBITA margin

EBITA amounted to SEK 129 million (168), and the corresponding margin was 9.3 percent (11.5). The margin was negatively impacted by lower utilisation rate. In the quarter, the divison continues to carry out capacity adjustments to meet the weaker demand. Adjusted for calendar effects, the margin was lower than the previous year.

Market development

The demand in pulp and paper remains at a low level with no clear signs of recovery. The market remains stable for CAPEX- projects in the chemical, biorefinery, mining, & metal sectors, as well as in new growth sectors such as hydrogen, batteries, regenerated textile fibers, and plastic recycling. Demand for operational services, technical consulting, and efficiency improvement projects remains high across all Process Industries' segments.

Net sales and EBITA, SEK million Key ratios

	Q2 2024	Q2 2023	Jan– June 2024	Jan– June 2023	Full year 2023
Net sales, SEK million	1,397	1,457	2,760	2,858	5,572
EBITA, SEK million	129	168	272	367	659
EBITA margin, %	9.3	11.5	9.8	12.8	11.8
Order stock, SEK million	–	–	2,582	3,587	3,028
Average full-time equivalents (FTEs)	4,024	4,383	4,084	4,389	4,336
Organic growth
Total growth, %	-4.1	25.9	-3.4	28.9	20.7
(-) Acquired, %	0.2	0.5	1.6	0.5	1.8
(-) Currency effects, %	-0.1	5.7	0.1	6.5	5.2
Organic, %	-4.2	19.7	-5.1	22.0	13.7
(-) Calendar effect, %	1.7	-0.8	-0.3	0.7	-0.7
Organic growth adjusted for calendar effects, %	-5.9	20.5	-4.8	21.3	14.4

Division Energy

Net sales

Net sales in the second quarter amounted to SEK 986 million (884), an increase by 11.6 percent. Adjusted for calendar effects, the organic growth was 8.8 percent. The growth was driven by a continued good demand, especially within hydro power and nuclear. The order stock remains at a high level.

EBITA and EBITA margin

EBITA amounted to SEK 97 million (80) and the corresponding margin was 9.8 percent (9.0). The margin was positively impacted by strong development in all segments and tight cost control. Adjusted for calendar effects, the margin was higher than the previous year.

Market development

The outlook for the energy sector is strong, with solid demand across most segments and markets. There is an increased demand for fossil-free energy production, storage solutions, and transmission and distribution, resulting in investments in CAPEX projects worldwide. The demand is also high for modernisation, rehabilitation and maintenance of existing capacity.

Net sales and EBITA, SEK million Key ratios

	Q2 2024	Q2 2023	Jan– June 2024	Jan– June 2023	Full year 2023
Net sales, SEK million	986	884	1,863	1,751	3,581
EBITA, SEK million	97	80	181	170	360
EBITA margin, %	9.8	9.0	9.7	9.7	10.0
Order stock, SEK million	–	–	5,342	4,947	4,570
Average full-time equivalents (FTEs)	1,973	1,907	1,959	1,878	1,900
Organic growth
Total growth, %	11.6	14.6	6.4	19.4	18.1
(-) Acquired, %	2.5	4.3	2.0	3.7	3.2
(-) Currency effects, %	-0.2	7.7	0.2	7.2	6.7
Organic, %	9.3	2.7	4.1	8.6	8.3
(-) Calendar effect, %	0.5	-2.0	-1.0	-0.8	-1.2
Organic growth adjusted for calendar effects, %	8.8	4.7	5.1	9.4	9.4

Division Management Consulting

Net sales

Net sales in the second quarter amounted to SEK 459 million (398), an increase by 15.2 percent. Adjusted for calendar effects, the organic growth was 11.5 percent. The growth reflects a strong demand mainly in the energy sector.

EBITA and EBITA margin

EBITA amounted to SEK 72 million (49) and the corresponding margin was 15.7 percent (12.3). The high margin was a result of continued strong demand for the division's consulting services and the timing of remuneration for one transaction related project.

Market development

The demand for consulting services in the energy is high while the biobased sectors is moderate. The ongoing transition in the energy and industrial sectors drives long-term increased demand for strategic advisory services.

	Q2 2024	Q2 2023	Jan– June 2024	Jan– June 2023	Full year 2023
Net sales, SEK million	459	398	856	770	1,608
EBITA, SEK million	72	49	117	97	185
EBITA margin, %	15.7	12.3	13.7	12.6	11.5
Order stock, SEK million	–	–	512	476	420
Average full-time equivalents (FTEs)	774	758	772	734	759
Organic growth
Total growth, %	15.2	19.1	11.1	24.4	23.3
(-) Acquired, %	0.0	0.0	0.0	0.0	0.0
(-) Currency effects, %	1.0	11.0	1.0	9.8	9.0
Organic, %	14.2	8.1	10.1	14.6	14.3
(-) Calendar effect, %	2.7	-2.0	0.5	-0.3	-0.9
Organic growth adjusted for calendar effects, %	11.5	10.0	9.7	14.9	15.1

The historical figures above have been adjusted to account for organisational changes.

Financial statements

SEK million	Q2 2024	Q2 2023	Jan–Jun 2024	Jan–Jun 2023	Full year 2023	Jul 2023– Jun 2024
Net sales	7,191	6,869	14,082	13,784	26,978	27,276
Personnel costs	-4,350	-4,299	-8,548	-8,326	-16,310	-16,532
Purchases of services and materials	-1,494	-1,394	-2,831	-2,801	-5,585	-5,615
Other costs	-613	-580	-1,216	-1,182	-2,373	-2,407
Other income	10	-1	14	–	7	21
Profit/loss attributable to participations in associates	–	–	–	–	0	–
EBITDA	743	594	1,501	1,476	2,718	2,742
Depreciation/amortisation and impairment of non-current assets1	-171	-197	-346	-389	-780	-737
EBITA	572	398	1,154	1,087	1,938	2,005
Acquisition-related items2	-31	-35	-72	-79	-159	-153
Operating profit (EBIT)	541	363	1,082	1,008	1,779	1,852
Financial income	62	366	160	511	531	180
Financial expenses	-130	-442	-298	-665	-869	-502
Financial items	-68	-76	-138	-153	-337	-322
Profit after financial items	473	287	944	855	1,441	1,530
Tax	-96	-86	-212	-219	-341	-335
Profit for the period	377	201	732	636	1,100	1,196
Attributable to:
Shareholders of the parent company	377	201	732	636	1,100	1,196
Non-controlling interest	0	0	0	0	0	0
Total	377	201	732	636	1,100	1,195
Basic/diluted earnings per share, SEK3	3.33	1.77	6.46	5.62	9.71
Number of shares outstanding	113,251,741	113,251,741	113,251,741	113,251,741	113,251,741
Average number of basic/diluted shares outstanding	113,251,741	113,236,166	113,251,741	113,251,741	113,251,741

Condensed consolidated income statement Statement of consolidated comprehensive income

SEK million	Q2 2024	Q2 2023	Jan–Jun 2024	Jan–Jun 2023	Full year 2023
Profit for the period	377	201	732	636	1,100
Items that have been or will be reclassified to profit/loss for the period
Change in translation reserve	-78	368	139	371	-85
Change in hedging reserve	-20	8	-22	-8	-103
Tax	0	0	0	1	10
Items that will not be reclassified to profit/loss for the period
Revaluation of defined-benefit pension plans	-3	-5	-1	-5	-27
Tax	1	2	0	1	4
Other comprehensive income	-101	373	116	361	-201
Comprehensive income for the period	276	573	848	997	899
Attributable to:
Shareholders of the parent company	276	573	848	998	899
Non-controlling interest	0	0	0	0	0
Total	277	573	848	997	899

1) Depreciation/amortisation and impairment of non-current assets refers to non-current assets excluding acquisition-related intangible assets. 2) Acquisition-related items are defined as depreciation/amortisation and impairment of acquisition-related intangible assets including goodwill, revaluation of contingent considerations and gains/losses on divestment of companies and operations. For more details, see Note 5, Note 6 and alternative performance measures for EBITA on page 27.

3) Issued convertibles did not lead to any dilution during the period.

Condensed consolidated balance sheet

SEK million	30 Jun 2024	30 Jun 2023	31 Dec 2023
ASSETS
Non-current assets
Intangible assets	15,957	16,391	15,760
Property, plant and equipment	386	387	382
Other non-current assets	1,874	2,176	2,020
Total non-current assets	18,217	18,954	18,162
Current assets
Current receivables	9,472	9,480	8,843
Cash and cash equivalents	827	1,079	1,167
Total current assets	10,299	10,559	10,010
Total assets	28,516	29,513	28,172
EQUITY AND LIABILITIES
Equity
Attributable to shareholders of the parent company	12,678	12,550	12,454
Attributable to non-controlling interest	1	2	1
Total equity	12,679	12,552	12,454
Non-current liabilities
Provisions	680	613	607
Non-current liabilities	6,736	5,964	6,067
Total non-current liabilities	7,416	6,577	6,674
Current liabilities
Provisions	40	48	61
Current liabilities	8,380	10,334	8,982
Total current liabilities	8,420	10,382	9,043
Total equity and liabilities	28,516	29,513	28,172

Condensed statement of change in consolidated equity

	30 Jun	30 Jun	31 Dec
SEK million	2024	2023	2023
Equity at start of period	12,454	12,178	12,178
Comprehensive income for the period	848	997	899
Dividends paid	-623	-623	-623
Equity at end of period	12,679	12,552	12,454

Condensed statement of consolidated cash flows Change in consolidated net debt (excluding IFRS 16)

SEK million	Q2 2024	Q2 2023	Jan–Jun 2024	Jan–Jun 2023	Full year 2023
Profit after financial items	473	287	944	855	1,441
Adjustment for non-cash items, etc.	103	364	302	579	1,041
Income tax paid	-97	-136	-182	-257	-433
Cash flow from operating activities before change in working capital	479	514	1,064	1,177	2,049
Cash flow from change in working capital	-59	-11	-537	-619	-255
Cash flow from operating activities	420	504	528	558	1,794
Cash flow from investing activities	-133	-381	-235	-549	-756
Cash flow from financing activities	-1,049	-112	-631	89	-942
Cash flow for the period	-762	11	-338	98	95
Opening cash and cash equivalents	1,563	1,162	1,167	1,088	1,088
Exchange difference in cash and cash equivalents	26	-94	-2	-107	-16
Closing cash and cash equivalents	827	1,079	827	1,079	1,167

SEK million	Q2 2024	Q2 2023	Jan–Jun 2024	Jan–Jun 2023	Full year 2023
Opening balance	5,039	4,941	4,868	4,646	4,646
Cash flow from operating activities (excl. IFRS 16)	-279	-352	-244	-260	-1,188
Net investments	44	50	72	90	172
Acquisitions/divestments and holdback/contingent considerations	73	337	157	462	575
Dividend	623	623	623	623	623
Other	4	108	28	147	40
Closing balance	5,504	5,708	5,504	5,708	4,868

Condensed parent company income statement Condensed parent company income statement

SEK million	Q2 2024	Q2 2023	Jan–Jun 2024	Jan–Jun 2023	Full year 2023
Net sales	295	280	585	554	1,111
Other operating income	118	119	237	241	470
Operating income	413	399	822	796	1,581
Personnel costs	-112	-103	-234	-199	-388
Other costs	-402	-413	-796	-799	-1,599
Depreciation/amortisation	-9	-10	-19	-20	-39
Operating profit/loss	-111	-127	-227	-222	-446
Financial items	71	290	35	296	659
Profit/loss after financial items	-40	163	-192	74	213
Appropriations	3	–	3	0	313
Profit/loss before tax	-37	163	-189	74	526
Tax	-1	17	13	27	25
Profit/loss for the period	-38	180	-176	101	551
Other comprehensive income	-5	9	13	4	-43
Comprehensive income/loss for the period	-43	189	-163	106	507

SEK million	30 Jun 2024	30 Jun 2023	31 Dec 2023
ASSETS
Non-current assets
Intangible assets	1	4	2
Property, plant and equipment	150	146	146
Financial assets	14,221	14,143	14,156
Total non-current assets	14,373	14,293	14,303
Current assets
Current receivables	4,718	5,306	5,082
Cash and cash equivalents	89	281	429
Total current assets	4,807	5,587	5,511
Total assets	19,180	19,880	19,814
EQUITY AND LIABILITIES
Equity	8,303	8,687	9,089
Untaxed reserves	87	103	89
Provisions	63	29	14
Non-current liabilities	5,601	4,324	4,665
Current liabilities	5,126	6,737	5,957
Total equity and liabilities	19,180	19,880	19,814

Notes

Accounting policies

This report was prepared in accordance with IAS 34, Interim Financial Reporting. The accounting policies conform with IFRS Accounting Standards (IFRS), as well as with the EU-approved interpretations of the relevant standards, the IFRS Interpretations Committee (IFRIC) and Chapter 9 of the Swedish Annual Accounts Act. The report has been drawn up using the same accounting policies and methods of calculation as those in AFRY's Annual and Sustainability Report 2023 (Note 1).

New or revised IFRS standards coming into force in 2024 have not had any material impact on the Group.

The parent company prepares its financial statements in accordance with the Swedish Financial Reporting Board's recommendation RFR 2, which requires the parent company, as a legal entity, to apply all EU-approved IFRS and interpretations as far as possible within the framework of the Annual Accounts Act and the Pension Obligations Vesting Act, taking into account the relationship between accounting profit and tax expense (income). Disclosures according to IAS 34.16A can partly be found on the pages preceding the condensed consolidated income statement.

Note 1 Note 2

Risks and uncertainties

The significant risks and uncertainties to which the AFRY Group is exposed include strategic risks linked to the market, acquisitions, sustainability and IT, and operational risks related to projects and the ability to recruit and retain qualified employees. In addition, the Group is exposed to several financial risks, such as currency risks, interest-rate risks and credit risks. The risks to which the Group is exposed are described in detail in AFRY's Annual and Sustainability Report 2023.

Geopolitical and macroeconomic uncertainties

Geopolitical tensions and uncertainties in the economic situation entail various risks for AFRY and mainly pertain to delayed decision processes and project launches.

Contingent liabilities

Reported contingent liabilities reflect one part of the AFRY Group's exposure to risk. AFRY provides clients with both corporate and bank guarantees when clients request them. This typically involves tender guarantees, advance payment guarantees or performance guarantees. Corporate guarantees are mainly provided by the parent company, AFRY AB, and bank guarantees by AFRY's banks. As at 30 June 2024, the Group's corporate guarantees amounted to SEK 891 million (499) and bank guarantees to SEK 671 million (758). The guarantee amounts do not include pension guarantees, advance payment guarantees or leasing, as these are already reported on the debt side in the balance sheet.

Note 3

Income

Net sales according to the business model

	Jan–Jun 2024
SEK million	Project Business	Professional Services	Total
Infrastructure	5,235	206	5,440
Industrial & Digital Solutions	1,319	2,280	3,600
Process Industries	1,914	846	2,760
Energy	1,567	296	1,863
Management Consulting	848	8	856
Group common/eliminations	-316	-121	-437
Group	10,568	3,515	14,082

The Group applies the accounting standard IFRS 15 Revenue from Contracts with Customers. AFRY's business model is divided into two client offerings: Project Business and Professional Services. Project Business is AFRY's offering for major projects and end-toend solutions. In such projects, AFRY acts as a partner to the client, leading and running the entire project. Professional Services is AFRY's offering in which the client manages and runs the project, while AFRY provides suitable expertise at the appropriate time.

Invoicing in Project Business takes place as work proceeds in accordance with agreed terms and conditions, either periodically (monthly) or when contractual milestones are reached. Invoicing ordinarily takes place after the income has been recorded, resulting in contract assets. However, AFRY sometimes receives advance payments or deposits from our clients before the income is recognised, which then results in contract liabilities. In Professional Services, hours spent on a project are ordinarily invoiced at the end of each month. Performance obligations in Project Business are fulfilled over time as the service is provided. Revenue recognition is based on costs with accumulated costs set in relation to total estimated costs. In Professional Services, revenue is recognised by the amount that the unit is entitled to invoice, in accordance with IFRS 15 B16.

Order stock

SEK million	30 Jun 2022	30 Sep 2022	31 Dec 2022	31 Mar 2023	30 Jun 2023	30 Sep 2023	31 Dec 2023	31 Mar 2024	30 Jun 2024
Infrastructure	7,523	8,010	8,133	8,077	8,848	9,002	8,659	8,679	8,526
Industrial & Digital Solutions	2,692	2,705	2,750	2,730	2,732	2,691	2,652	2,814	2,982
Process Industries	3,365	3,295	3,428	3,770	3,587	3,251	3,028	3,098	2,582
Energy	4,068	4,424	4,798	4,882	4,947	4,985	4,570	5,255	5,342
Management Consulting	404	398	331	414	476	463	420	503	512
Group	18,052	18,831	19,440	19,871	20,590	20,392	19,329	20,350	19,944

As a result of organisational changes, comparative figures have been adjusted to provide a better reflection of the business.

Note 4

Quarterly information by division

2022	2023
Q2 Q3 Q4 Q1 Net sales, SEK million	Q2	Q3 Q4	Q1	Q2
Infrastructure 2,305 1,966 2,492 2,629	2,601 2,249	2,737	2,670	2,771
Industrial & Digital Solutions 1,627 1,392 1,785 1,814	1,747 1,455	1,775	1,790	1,810
Process Industries 1,157 1,107 1,294 1,402	1,457 1,282	1,432	1,363	1,397
Energy 771 726 840 867	884 869	961	877	986
Management Consulting 333 311 366 372	398 385	453	397	459
Group common/eliminations -218 -203 -169 -167	-218 -182	-222	-205	-232
Group 5,975 5,298 6,609 6,916	6,869 6,059	7,135	6,891	7,191
2022	2023		2024
Q2 Q3 Q4 Q1 EBITA, SEK million	Q2	Q3 Q4	Q1	Q2
Infrastructure 174 121 195 260	103	65 229	216	213
Industrial & Digital Solutions 127 98 152 182	101	69 113	165	116
Process Industries 113 101 148 199	168 122	170	142	129
Energy 71 58 94 91	80	79 110	85	97
Management Consulting 44 38 48 48	49	42 46	45	72
Group common/eliminations -97 -41 -75 -91	-103 -67	-126	-72	-54
Group 432 376 562 689	398 310	541	582	572
2022 Q2 Q3 Q4 Q1	2023 Q2	Q3 Q4	2024 Q1	Q2
EBITA margin, %
Infrastructure 7.5 6.2 7.8 9.9	4.0	2.9 8.4	8.1	7.7
Industrial & Digital Solutions 7.8 7.1 8.5 10.1	5.8	4.7 6.3	9.2	6.4
Process Industries 9.8 9.2 11.5 14.2	11.5	9.5 11.9	10.4	9.3
Energy 9.2 8.0 11.2 10.5	9.0	9.1 11.4	9.6	9.8
Management Consulting 13.1 12.3 13.0 12.9 Group 7.2 7.1 8.5 10.0	12.3 10.8 5.8	10.2 5.1 7.6	11.4 8.4	15.7 8.0

As a result of organisational changes, comparative figures have been adjusted to provide a better reflection of the business.

1) The calculation of the average number of FTEs has changed in connection with organisational changes. This has led to a more accurate and weighted calculation of the number of available hours for all divisions.

	20221			20231				2024
Average number of FTEs	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
Infrastructure	6,483	6,460	6,620	6,767	6,923	6,867	6,901	6,740	6,746
Industrial & Digital Solutions	3,771	3,784	3,870	3,839	3,840	3,834	3,846	3,750	3,699
Process Industries	4,072	4,202	4,314	4,394	4,383	4,334	4,230	4,145	4,024
Energy	1,738	1,783	1,819	1,852	1,908	1,907	1,938	1,945	1,973
Management Consulting	641	658	696	712	758	774	791	770	774
Group functions	567	523	527	526	530	535	529	533	529
Group	17,273	17,412	17,846	18,091	18,342	18,252	18,236	17,882	17,745

	2022				2023			2024
Number of working days	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
Sweden only	60	66	63	64	59	65	63	63	60
All countries	60	66	63	64	59	65	62	62	61

Acquisitions and divestments

The following acquisitions have been made during the period

Consolidated from	Company1	Country	Division	Annual net sales, SEK million	Average number of employees
March	SOM System Kft. & TTSA Mérnökiroda Kft.	Hungary	Energy	35	20
March	Carelin Oy	Finland	Energy	60	40
Total				95	60

1) Company name at time of acquisition.

Acquired companies

Acquisition analyses are preliminary as the net assets in the companies acquired have not been conclusively analysed. The purchase considerations for acquisitions for the year were larger than the booked net assets of the acquired companies, which means that the acquisition analyses have resulted in intangible assets.

Contingent consideration

Total undiscounted contingent consideration for the companies acquired during the year is a maximum of SEK 23 million.

Holdback

Part of the purchase price withheld by the buyer as security for any claims against the seller, paid to the seller according to the agreed payment plan. The withheld parts of the purchase price are independent of conditions linked to the future performance of acquired companies.

Goodwill

Goodwill consists mainly of human capital in the form of employee skills and synergy effects. Goodwill is not expected to be tax deductible on acquisition of a company. The acquisition of a consulting business essentially involves the acquisition of human capital, and most of the intangible assets in the company acquired are thus attributable to goodwill.

Other intangible assets

Order stock and client relationships are identified and assessed in connection with completed acquisitions.

Transaction costs

Transaction costs are recognised in Other external costs in profit or loss. Transaction costs amounted to SEK 4 million for the period.

Revenue and profit/loss from acquired companies

The acquired companies are expected to contribute net sales of approximately SEK 95 million and operating profit of roughly SEK 14 million over a full year.

Since their acquisition dates, acquired companies have contributed SEK 27 million to consolidated revenue and SEK 1 million to operating profit.

Acquisitions after the end of the reporting period

After the end of the reporting period, no acquisitions have been concluded.

Acquired companies' net assets on acquisition date

Intangible assets Property, plant and equipment Right-of-use assets Financial assets Deferred tax asset	0 1 – –
	–
Trade and other receivables	13
Cash and cash equivalents	13
Trade payables, loans and other liabilities	-13
Net identifiable assets and liabilities	14
Goodwill	109
Fair value adjustment, intangible assets	3
Fair value adjustment, non-current provisions	0
Purchase consideration including estimated contingent consideration	127
Transaction costs	4
Less:
Cash (acquired)	13
Estimated contingent consideration	21
Holdback	10
Net cash outflow	86

Note 6

Financial instruments

Valuation principles and classification of the Group's financial assets and liabilities, as described in Note 13 of AFRY's 2023 Annual and Sustainability Report, have been applied consistently throughout the reporting period.

Financial assets and liabilities

SEK million	Level	30 Jun 2024	30 Jun 2023	31 Dec 2023
Financial assets measured at fair value
Interest rate derivatives, hedge accounting applied	2	75	107	63
Forward exchange contracts, hedge accounting applied	2	10	27	26
Forward exchange contracts, hedge accounting not applied	2	27	67	36
Bought foreign exchange options	2	–	0	1
Total		113	202	125
Financial assets not recognised at fair value
Trade receivables		4,985	4,822	5,429
Revenue generated but not invoiced		3,232	3,226	2,442
Financial investments		5	9	8
Non-current receivables		5	10	8
Cash and cash equivalents		827	1,079	1,167
Total		9,054	9,147	9,053

SEK million	Level	30 Jun 2024	30 Jun 2023	31 Dec 2023
Financial liabilities measured at fair value
Interest rate derivatives, hedge accounting applied	2	47	118	62
Forward exchange contracts, hedge accounting applied	2	7	29	13
Forward exchange contracts, hedge accounting not applied	2	22	56	75
Sold foreign exchange options	2	–	0	0
Contingent considerations	3	44	210	109
Total		120	413	260
Financial liabilities not recognised at fair value
Bank loans		2,175	2,931	2,834
Bonds		3,300	2,500	2,500
Commercial paper		699	1,064	402
Staff convertibles		0	147	148
Lease liabilities		1,680	2,131	1,974
Work invoiced but not yet carried out		2,173	2,106	2,077
Trade payables		952	1,115	1,182
Total		10,979	11,995	11,117

Fair value of financial assets and liabilities

Recognised and fair values of the Group's financial assets and liabilities are presented in the table on the left. The fair value of derivatives is based on level 2 of the fair value hierarchy. Contingent considerations are valued at market value in accordance with level 3. Derivative instruments where hedge accounting is not applied are measured at fair value through profit or loss, and derivatives where hedge accounting is applied are measured at fair value through other comprehensive income. All other financial assets and liabilities are measured at amortised cost. Compared with 2023, no switches have been made between different levels in the fair value hierarchy for derivatives or loans. Nor have any significant changes been made in terms of valuation techniques, inputs or assumptions.

Contingent considerations

Contingent considerations are valued at market value in accordance with level 3. The calculation of contingent consideration is dependent on parameters in the relevant agreements. These parameters are chiefly linked to expected EBIT for the acquired companies over the next two to three years. The change in the balance sheet item is shown in the table below.

SEK million	30 Jun 2024
Opening balance 1 January 2024	109
Acquisitions for the year	21
Payments	-63
Changes in value recognised in income statement	-12
Adjustment of preliminary acquisition analysis	-9
Discounting	2
Translation differences	-4
Closing balance	44

Note 6, cont.

Derivative instruments

SEK million	Level	30 Jun 2024	30 Jun 2023	31 Dec 2023
Forward exchange contracts, hedge accounting not applied
Total nominal values		2,835	3,604	2,894
Fair value, profit	2	27	67	36
Fair value, loss	2	-22	-56	-75
Fair value, net		5	11	-39

Forward exchange contracts, cash flow hedging reporting
Total nominal values		516	897	744
Fair value, profit	2	10	27	26
Fair value, loss	2	-7	-29	-13
Fair value, net		3	-2	13

Bought foreign exchange options, hedge accounting not applied
Total nominal values		–	79	48
Fair value, profit	2	–	–	0
Fair value, loss	2	–	–	–
Fair value, net		0	0	0

SEK million	Level	30 Jun 2024	30 Jun 2023	31 Dec 2023
Sold foreign exchange options, hedge accounting not applied
Total nominal values		–	158	92
Fair value, profit	2	–	–	0
Fair value, loss	2	–	–	0
Fair value, net		0	0	0

Cross currency rate swaps, hedge accounting for net investments applied

Fair value, net		-31	-118	-46
Fair value, loss	2	-38	-118	-47
Fair value, profit	2	7	–	1
Total nominal values		1,850	1,850	1,850

Interest rate swaps, cash flow hedge accounting

Fair value, net		60	107	47
Fair value, loss	2	-8	–	-16
Fair value, profit	2	68	107	62
Total nominal values		1,368	1,390	1,354
applied

Note 7

Related party transactions

There were no material transactions between AFRY and its related parties during the period.

Note 8

Significant events after the end of the reporting period

No significant events after the end of the reporting period were identified.

Signatures

The Board of Directors and Chief Executive Officer provide assurance that this interim report for the January–June 2024 period gives an accurate overview of the company and Group's operations, financial position and earnings, and describes significant risks and uncertainties to which the company and companies included in the Group are exposed.

Stockholm, Sweden – 16 July 2024

Tom Erixon Chairman of the Board Jonas Gustavsson President and CEO Henrik Ehrnrooth Director Neil McArthur Director Kristina Schauman Director Tuula Teeri Director Magnus Heimburg Director Jenny Larsson Director Åsa Pettersson Director Bodil Werkström Director, employee representative Jessica Åkerdahl Director, employee representative

Alternative performance measures

The consolidated financial statements contain financial ratios defined according to IFRS. They also include measurements not defined according to IFRS, known as alternative performance measures. The purpose of this is to provide information for comparing trends across years and to understand the underlying operations. These terms may be defined in a different way by other companies and are therefore not always comparable to similar measures used by other companies.

Definitions

The key ratios and alternative performance measures (APMs) used in this report are defined in AFRY's Annual and Sustainability Report 2023 and on our website: https://afry. com/en/investor-relations/.

Organic growth

Since the Group is active in a global market, sales are transacted in currencies other than the Swedish krona, which is the presentation currency. Exchange rates have been relatively volatile historically, and the Group carries out acquisitions/divestments of operations on an ongoing basis. Taken together, this has led to the Group's sales and performance being evaluated on the basis of organic growth. Organic sales growth represents comparable sales growth or sales reduction and enables separate valuations to be carried out on the impact of acquisitions/divestments and exchange rate fluctuations.

	Infrastructure		Industrial & Digital Solutions			Process Industries		Energy		Management Consulting		Group1
%	Q2 2024	Q2 2023	Q2 2024	Q2 2023	Q2 2024	Q2 2023	Q2 2024	Q2 2023	Q2 2024	Q2 2023	Q2 2024	Q2 2023
Total growth	6.5	13.1	3.6	9.4	-4.1	25.9	11.6	14.6	15.2	19.1	4.7	15.0
(-) Acquired	0.0	0.9	0.0	0.0	0.2	0.5	2.5	4.3	0.0	0.0	0.4	1.0
(-) Currency effect	0.3	4.2	0.0	1.1	-0.1	5.7	-0.2	7.7	1.0	11.0	0.1	4.5
Organic	6.3	8.0	3.6	8.3	-4.2	19.7	9.3	2.7	14.2	8.1	4.2	9.4
(-) Calendar effect	2.6	-1.5	1.8	-1.4	1.7	-0.8	0.5	-2.0	2.7	-2.0	2.0	-1.4
Organic growth adjusted for calendar effects	3.7	9.5	1.8	9.8	-5.9	20.5	8.8	4.7	11.5	10.0	2.2	10.8
SEK million
Total growth	170	297	63	129	-59	300	102	113	61	59	322	894
(-) Acquired	0	21	0	0	3	6	22	33	0	0	25	61
(-) Currency effect	7	94	0	14	-1	66	-2	59	4	34	8	269
Organic	163	182	62	115	-61	228	82	21	56	25	289	563
(-) Calendar effect	67	-34	32	-20	25	-9	5	-16	11	-6	135	-82
Organic growth adjusted for calendar effects	96	216	31	134	-86	237	78	36	46	31	154	646

1) The Group includes eliminations.

Organic growth cont.

	Infrastructure		Industrial & Digital Solutions		Process Industries		Energy		Management Consulting		Group1
%	Jan–Jun 2024	Jan–Jun 2023	Jan–Jun 2024	Jan–Jun 2023	Jan–Jun 2024	Jan–Jun 2023	Jan–Jun 2024	Jan–Jun 2023	Jan–Jun 2024	Jan–Jun 2023	Jan–Jun 2024	Jan–Jun 2023
Total growth	4.0	14.4	1.1	12.5	-3.4	28.9	6.4	19.4	11.1	24.4	2.2	18.4
(-) Acquired	0.4	0.6	0.0	0.0	1.6	0.5	2.0	3.7	0.0	0.0	0.7	0.9
(-) Currency effect	0.2	3.5	0.0	1.0	0.1	6.5	0.2	7.2	1.0	9.8	0.2	4.2
Organic	3.5	10.2	1.1	11.4	-5.1	22.0	4.1	8.6	10.1	14.6	1.3	13.3
(-) Calendar effect	-0.1	-0.1	0.0	0.0	-0.3	0.7	-1.0	-0.8	0.5	-0.3	-0.2	0.0
Organic growth adjusted for calendar effects	3.5	10.3	1.1	11.4	-4.8	21.3	5.1	9.4	9.7	14.9	1.4	13.2
SEK million
Total growth	210	646	39	340	-98	642	112	285	86	139	298	2,140
(-) Acquired	20	29	0	0	45	10	36	54	0	0	101	100
(-) Currency effect	9	157	-1	28	3	143	4	105	8	56	24	493
Organic	181	460	40	312	-146	488	72	126	78	83	173	1,547
(-) Calendar effect	-3	-5	0	-1	-8	16	-17	-11	4	-2	-23	5
Organic growth adjusted for calendar effects	184	465	40	312	-138	472	90	137	74	85	196	1,542

1) The Group includes eliminations.

EBITA/EBITA excluding items affecting comparability

Operating profit before associates and items affecting comparability refers to the operating profit after restored tangible items and events related to changes in the Group's structure and operations which are relevant for an understanding of the Group's performance on a comparable basis. This metric is used by Group Executive Management to monitor and analyse underlying profit/loss and to provide comparable figures between periods.

	Infrastructure		Industrial & Digital Solutions			Process Industries		Energy		Management Consulting		Group1
SEK million	Q2 2024	Q2 2023	Q2 2024	Q2 2023	Q2 2024	Q2 2023	Q2 2024	Q2 2023	Q2 2024	Q2 2023	Q2 2024	Q2 2023
EBIT (operating profit)	213	103	116	101	129	168	97	80	72	49	541	363
Acquisition-related items
Amortisation and impairment of intangible assets	–	–	–	–	–	–	–	–	–	–	44	45
Revaluation of contingent considerations	–	–	–	–	–	–	–	–	–	–	-12	-9
Divestment of operations	–	–	–	–	–	–	–	–	–	–	-1	-1
Profit (EBITA)	213	103	116	101	129	168	97	80	72	49	572	398
Items affecting comparability
Costs for the premature termination of leases for office premises	–	–	–	–	–	–	–	–	–	–	–	23
EBITA excl. items affecting comparability	213	103	116	101	129	168	97	80	72	49	572	421
%
EBIT margin	7.7	4.0	6.4	5.8	9.3	11.5	9.8	9.0	15.7	12.3	7.5	5.3
Acquisition-related items
Amortisation and impairment of intangible assets	–	–	–	–	–	–	–	–	–	–	0.6	0.7
Revaluation of contingent considerations	–	–	–	–	–	–	–	–	–	–	-0.2	-0.1
Divestment of operations	–	–	–	–	–	–	–	–	–	–	-0.0	-0.0
EBITA margin	7.7	4.0	6.4	5.8	9.3	11.5	9.8	9.0	15.7	12.3	8.0	5.8
Items affecting comparability	–	–	–	–	–	–	–	–	–	–	–	0.3
EBITA margin excl. items affecting comparability	7.7	4.0	6.4	5.8	9.3	11.5	9.8	9.0	15.7	12.3	8.0	6.1

The historical figures above have been adjusted to account for organisational changes.

1) The Group includes eliminations.

27

EBITA/EBITA excluding items affecting comparability cont.

	Infrastructure		Industrial & Digital Solutions		Process Industries		Energy		Management Consulting		Group1
SEK million	Jan–Jun 2024	Jan–Jun 2023	Jan–Jun 2024	Jan–Jun 2023	Jan–Jun 2024	Jan–Jun 2023	Jan–Jun 2024	Jan–Jun 2023	Jan–Jun 2024	Jan–Jun 2023	Jan–Jun 2024	Jan–Jun 2023
EBIT (operating profit)	429	363	281	283	272	367	181	170	117	97	1,082	1,008
Acquisition-related items
Amortisation and impairment of intangible assets	–	–	–	–	–	–	–	–	–	–	88	88
Revaluation of contingent considerations	–	–	–	–	–	–	–	–	–	–	-12	-9
Divestment of operations	–	–	–	–	–	–	–	–	–	–	-3	-1
Profit (EBITA)	429	363	281	283	272	367	181	170	117	97	1,154	1,087
Items affecting comparability
Integration costs in connection with acquisitions	–	–	–	–	–	–	–	–	–	–	4	–
Costs for the premature termination of leases for office premises	–	–	–	–	–	–	–	–	–	–	4	23
EBITA excl. items affecting comparability	429	363	281	283	272	367	181	170	117	97	1,162	1,110
%
EBIT margin	7.9	6.9	7.8	7.9	9.8	12.8	9.7	9.7	13.7	12.6	7.7	7.3
Acquisition-related items
Amortisation and impairment of intangible assets	–	–	–	–	–	–	–	–	–	–	0.6	0.6
Revaluation of contingent considerations	–	–	–	–	–	–	–	–	–	–	-0.1	-0.1
Divestment of operations	–	–	–	–	–	–	–	–	–	–	-0.0	-0.0
Profit (EBITA margin)	7.9	6.9	7.8	7.9	9.8	12.8	9.7	9.7	13.7	12.6	8.2	7.9
Items affecting comparability	–	–	–	–	–	–	–	–	–	–	0.1	0.2
EBITA margin excl. items affecting comparability	7.9	6.9	7.8	7.9	9.8	12.8	9.7	9.7	13.7	12.6	8.3	8.0

The historical figures above have been adjusted to account for organisational changes.

1)The Group includes eliminations.

Net debt

Net debt is the total of interest-bearing liabilities less cash and cash equivalents and interest-bearing assets. Lease liabilities after the deduction of receivables relating to subleases are included in net debt. Net debt also includes dividends approved but not yet paid out. Net debt is used by Group Executive Management to monitor and analyse the debt trend in the Group and evaluate the Group's refinancing requirements. Net

debt/EBITDA is a key ratio for net debt in relation to cash-generating profit in the operation, which provides an indication of the business's ability to pay its debts. This metric is commonly used by financial institutions to measure creditworthiness. A negative figure means that the Group has a net cash balance (cash and cash equivalents exceed interest-bearing liabilities).

SEK million

Depreciation/amortisation and

Consolidated net debt (excl. IFRS 16)

SEK million	30 Sep 2022	31 Dec 2022	31 Mar 2023	30 Jun 2023	30 Sep 2023	31 Dec 2023	31 Mar 2024	30 Jun 2024
Loans and credit facilities	5,667	5,580	5,947	6,631	6,312	5,876	6,438	6,169
Net pension liability	174	155	156	155	152	159	164	162
Cash and cash equivalents	-862	-1,088	-1,162	-1,079	-853	-1,167	-1,563	-827
Total net debt	4,979	4,646	4,941	5,708	5,611	4,868	5,039	5,504

Net debt/equity ratio

SEK million	30 Sep 2022	31 Dec 2022	31 Mar 2023	30 Jun 2023	30 Sep 2023	31 Dec 2023	31 Mar 2024	30 Jun 2024
Net debt	4,979	4,646	4,941	5,708	5,611	4,868	5,039	5,504
Equity	11,703	12,178	12,602	12,552	12,537	12,454	13,026	12,679
Net debt/equity ratio, %	42.5	38.2	39.2	45.5	44.8	39.1	38.7	43.4

EBITDA 2,317 2,430 2,786 2,778 2,738 2,718 2,593 2,742 Lease expenses -535 -540 -577 -614 -650 -676 -663 -653 EBITDA excl. IFRS 16 1,783 1,890 2,209 2,164 2,088 2,042 1,930 2,089 Net debt 4,979 4,646 4,941 5,708 5,611 4,868 5,039 5,504 Net debt/EBITDA, excl. IFRS 16, rolling 12 months, times 2.8 2.5 2.2 2.6 2.7 2.4 2.6 2.6 Items affecting comparability 171 157 44 47 55 94 102 79 EBITDA excl. IFRS 16 and items affecting comparability 1,953 2,047 2,253 2,212 2,143 2,136 2,032 2,169 Net debt 4,979 4,646 4,941 5,708 5,611 4,868 5,039 5,504 Net debt/EBITDA, excl. IFRS 16 and items affecting comparability, rolling 12 months, times 2.5 2.3 2.2 2.6 2.6 2.3 2.5 2.5

Apr 2022– Mar 2023

Profit (EBITA) 1,632 1,729 2,059 2,025 1,958 1,938 1,830 2,005

impairment of non-current assets. 685 702 727 753 780 780 763 737

Jul 2022– Jun 2023 Oct 2022– Sep 2023 Full year 2023

Apr 2023– Mar 2024 Jul 2023– Jun 2024

Consolidated net debt (incl. IFRS 16)

SEK million	30 Sep 2022	31 Dec 2022	31 Mar 2023	30 Jun 2023	30 Sep 2023	31 Dec 2023	31 Mar 2024	30 Jun 2024
Loans and credit facilities	7,819	7,783	8,136	8,763	8,343	7,850	8,286	7,849
Net pension liability	174	155	156	155	152	159	164	162
Cash and cash equivalents	-862	-1,088	-1,162	-1,079	-853	-1,167	-1,563	-827
Total net debt	7,131	6,849	7,130	7,839	7,642	6,842	6,887	7,184

Net debt/EBITDA excl. IFRS 16 rolling 12 months

Oct 2021– Sep 2022 Full year 2022

Return on equity

Return on equity is the business's profit/loss after tax during the period in relation to average equity. This key ratio is used to show the return on the owners' invested capital, which gives an indication of the business's ability to create value for its owners.

SEK million	30 Sep 2022	31 Dec 2022	31 Mar 2023	30 Jun 2023	30 Sep 2023	31 Dec 2023	31 Mar 2024	30 Jun 2024
Profit after tax, rolling 12 months	877	974	1,187	1,214	1,184	1,100	1,019	1,196
Average equity	11,171	11,522	11,844	12,071	12,314	12,465	12,635	12,650
Return on equity, %	7.8	8.5	10.0	10.1	9.6	8.8	8.1	9.5

Equity ratio

The equity ratio shows the business's equity in relation to total capital and describes how large a proportion of the business's assets are not matched by liabilities. The equity ratio can be seen as the business's ability to pay in the long term. The key ratio is impacted by profitability during the period and by how the business is financed. This metric is often used to provide an indication of how the company is financed and also to see trends in how the business's funds are utilised. A change in the equity ratio over time may, for example, be an indication that the business is reviewing its financing structure or is utilising its equity to finance an expansion.

SEK million	30 Sep 2022	31 Dec 2022	31 Mar 2023	30 Jun 2023	30 Sep 2023	31 Dec 2023	31 Mar 2024	30 Jun 2024
Equity	11,703	12,178	12,602	12,552	12,537	12,454	13,026	12,679
Balance sheet total	26,971	27,996	28,411	29,513	28,298	28,172	29,173	28,516
Equity ratio, %	43.4	43.5	44.4	42.5	44.3	44.2	44.6	44.5

Return on capital employed

Return on capital employed shows the business's profit/loss after financial items, adjusted for interest expenses in relation to average interest-bearing capital in the business's balance sheet total. The key ratio is used to evaluate how the company utilises capital which has some form of return requirement (for example, dividends on invested capital from shareholders as well as interest on bank loans).

SEK million	30 Sep 2022	31 Dec 2022	31 Mar 2023	30 Jun 2023	30 Sep 2023	31 Dec 2023	31 Mar 2024	30 Jun 2024
Profit after financial items,
rolling 12 months	1,116	1,220	1,498	1,549	1,526	1,441	1,344	1,530
Financial expenses, rolling 12 months	117	206	247	306	322	396	419	410
Profit	1,233	1,426	1,746	1,855	1,848	1,837	1,763	1,941
Average balance sheet total	25,912	26,711	27,211	27,961	28,238	28,478	28,713	28,734
Average other current liabilities	-6,496	-6,853	-6,964	-7,184	-7,163	-7,278	-7,268	-7,316
Average other non-current liabilities	-235	-237	-232	-210	-177	-140	-111	-85
Average deferred
tax liability	-197	-190	-184	-186	-185	-192	-186	-171
Capital employed	18,985	19,432	19,831	20,382	20,713	20,868	21,149	21,163
Return on capital employed, %	6.5	7.3	8.8	9.1	8.9	8.8	8.3	9.2

Stockholm, Sweden – 16 July 2024

AFRY AB (publ) Jonas Gustavsson President and CEO

This report has not been subjected to scrutiny by the company's auditors.

This information fulfils the disclosure requirements of AFRY AB (publ) under the provisions of the EU's Market Abuse Regulation and the Swedish Securities Markets Act. This information was released, through the agency of the above-mentioned contact person, for publication on 16 July 2024, at 07.00 CET.

All forward-looking statements in this report are based on the company's best assessment at the time the report was written. As is the case with all assessments of the future, such assumptions are subject to risks and uncertainties, which may mean that the actual outcome differs from the anticipated result.

Head Office: AFRY AB, SE-169 99 Stockholm, Sweden Visiting address: Frösundaleden 2, Solna, Sweden Tel: +46 10 505 00 00 www.afry.com info@afry.com Corp. ID no. 556120-6474

Investor presentation

Time:	16 July 2024 at 10.00 CET
Webcast:	https://www.youtube.com/live/g-BLYOcL_-k
For analysts/ investors:	Click here to connect to the meeting With the opportunity to ask questions

Calendar

Q3 2024	25 October 2024
Q4 2024	7 February 2025