Sweco

Earnings Release • Feb 11, 2022

11 February 2022

A solid end to the year

October–December 2021

• Net sales increased to SEK 5,920 million (5,142)
• EBITA, excl. items affecting comparability, increased to SEK 585 million (514), margin 9.9 per cent (9.5)
• EBITA increased 5 per cent year-on-year after adjustment for calendar effects and items affecting comparability
• EBITA increased to SEK 585 million (224), margin 9.9 per cent (4.4)
• EBIT increased to SEK 582 million (248), margin 9.8 per cent (4.8)
• Profit after tax increased to SEK 454 million (235), corresponding to SEK 1.27 per share (0.66)

January–December 2021

• Net sales increased to SEK 21,792 million (20,858)
• EBITA, excl. items affecting comparability, increased to SEK 2,070 million (2,056), margin 9.5 per cent (9.7)
• EBITA increased to SEK 2,014 million (1,766), margin 9.2 per cent (8.5)
• EBIT increased to SEK 1,974 million (1,706), margin 9.1 per cent (8.2)
• Profit after tax increased to SEK 1,492 million (1,293), corresponding to SEK 4.18 per share (3.64)
• Net debt decreased to SEK 913 million (943)
• Net debt/EBITDA decreased to 0.4 x (0.5)
• The Board of Directors proposes a dividend distribution of SEK 2.45 per share (2.20)

Sweco plans and designs the sustainable communities and cities of the future. Together with our clients and the collective knowledge of our 18,000 architects, engineers and other specialists, we co-create solutions to address urbanisation, capture the power of digitalisation and make our societies more sustainable. Sweco is Europe's leading engineering and architecture consultancy, with sales of approximately SEK 22 billion (EUR 2.1 billion). The company is listed on Nasdaq Stockholm. This information is information that Sweco is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons, at around 07:20 CET on 11 February 2022.

CEO comment

A solid end to the year

We ended the year with a solid quarter, delivering good organic growth and improved margins. Overall demand for our services remains good and we continue to strengthen our order book. We also have a strong financial position, which allows us to act on opportunities in the market. During the year, we completed eight acquisitions and welcomed more than 400 new experts to Sweco. This development continues into 2022, with our acquisition of Swedish Net Engineering being announced early February. The acquisition further strengthens our leading position in the market for physical and technical protection and security in Sweden.

The pandemic made 2021 another challenging year. I am therefore pleased that we were able to deliver a year with profitable growth. I believe it shows the strength of our diversified service offering, our decentralised model and the solid underlying demand for our services, driven by strong trends in society.

Sustainable transformation pervades everything we do at Sweco. In this quarter, we have won assignments such as engineering services for a pilot plant for industrial hydrogen production in Finland, design of an innovative zero carbon building in London's King's Cross area and planning an energy island for wind turbines in the North Sea offshore Belgium.

Positive development in most business areas

We delivered healthy growth in the fourth quarter. Net sales increased to SEK 5,920 million (5,142), with organic growth at five per cent, adjusted for calendar effects and items affecting comparability (IAC). EBITA, adjusted for calendar and IAC, amounted to SEK 585 million (514), with an EBITA margin of 9.9 per cent (9.5). The improvement was mainly driven by higher average fees, while higher operating expenses and higher absence impacted negatively.

Seven out of eight business areas reported positive organic growth, and five out of eight reported year-on-year higher EBITA in the quarter. The development was particularly strong in Norway and the Netherlands. Denmark delivered improved margins and Germany is taking steps in the right direction on its long-term turnaround journey. We see the performance as a first sign that our actions implemented in Germany are beginning to have a positive impact. Belgium and Finland continued to deliver solid performance,

although at slightly lower margins in the quarter. Sweden maintained a high margin, despite an EBITA decline. Sweco UK is more or less unchanged compared with last year and is still facing an uncertain market.

Our financial position remains strong with good cash flow in the quarter, a low net debt and significant available financial resources.

Well-positioned for long-term profitable growth

One of the key highlights in the quarter was the climate summit COP26 in Glasgow, Scotland. Many ambitious agreements have been signed between political leaders as well as companies from across the globe, thereby setting the foundation to further accelerate the necessary sustainable transformation of our society.

For Sweco, this means even stronger underlying demand for our services for the years and decades to come as climate action is needed on all levels in society. With our broad offering, we are well-positioned to be the partner of choice for our clients.

As always, our focus going forward is to deliver profitable growth. We see great business opportunities and will continue to focus on implementing the Sweco model in all countries to optimise our way of working. We will also remain active in the market consolidation and capture opportunities when they arise.

I would like to end by thanking all our employees, clients, shareholders and other partners for the great work done and productive collaboration this year. We are truly transforming society together.

Åsa Bergman President and CEO

Europe's leading architecture and engineering consultancy

Urbanisation, digitalisation and sustainability are transforming society. Together with our clients, we are committed to ensuring that we have clean water, clean air, clean energy and a physical environment where we all can live, work and prosper. With more than 18,000 experts in Europe, we have the knowledge to solve the most challenging projects, no matter size or location.

Key figures

#1 In the European market	8 Business Areas	18,000 Full-time employees
SEK 21.8 bn Net sales R12	SEK 2.0 bn EBITA R12	9.2% EBITA margin R12

Group performance

Organic growth amounted to approximately 5 per cent after adjustment for calendar effects and IAC. Acquired growth amounted to 3 per cent. EBITA increased approximately 5 per cent year-on-year after adjustment for calendar effects and IAC.

October–December

Net sales increased 15 per cent to SEK 5,920 million (5,142). Organic growth amounted to approximately 5 per cent after adjustment for calendar effects and for items affecting comparability (IAC). Acquired growth amounted to 3 per cent and currency effects were 1 per cent.

Organic growth adjusted for calendar effects and IAC was driven mainly by higher average fees and lower project adjustments, while higher absence impacted negatively.

EBITA increased to SEK 585 million (224). The EBITA margin increased to 9.9 per cent (4.4). Last year was impacted by the write-down of working capital of SEK 290 million in the German operations, which is included in the Items affecting comparability.

EBITA excluding IAC increased to SEK 585 million (514) and the EBITA margin increased to 9.9 per cent (9.5).

EBITA excluding IAC increased approximately 5 per cent or SEK 27 million year-on-year after adjustment for calendar effects. Germany & Central Europe, Norway, the Netherlands, the UK and Finland noted increasing EBITA levels. EBITA was impacted by lower earnings mainly in Sweden, while Denmark and Belgium had slightly lower earnings when adjusting for calendar effects. Overall for the Group, the EBITA increase was primarily driven by higher average fees and lower project adjustments, while higher operating expenses and higher absence had a negative impact. The contribution from acquisitions also had a positive impact. Compared with the fourth quarter last year, the advantage of

lower costs, mainly related to effects of Covid-19, has been reversed.

The quarter had five more working hours compared with the same period last year. This corresponded to a positive year-on-year impact of approximately SEK 44 million on net sales and EBITA. The net positive calendar effect was entirely in the second half of December and therefore only partly materialised, due to more vacation taken during the holiday period.

The billing ratio remained stable at 74.1 per cent (74.1).

Total net financial items improved to SEK -18 million (-21), primarily due to a better interest net, lower interest cost of leasing and positive FX-related effects. Last year's period was positively impacted by sale of associated companies. Earnings per share increased to SEK 1.27 (0.66).

KPIs	Oct–Dec 2021	Oct–Dec 2020	Full-year 2021	Full-year 2020
Net sales, SEK M	5,920	5,142	21,792	20,858
Organic growth, %	11	-9	3	-1
Acquisition-related growth, %	3	3	3	4
Currency, %	1	-3	-1	-2
Total growth, %	15	-10	4	1
Organic growth adj. for calendar, %	11	-10	3	-2
Organic growth adj. for calendar & IAC, %	5	-5	2	-1
EBITA excl. IAC, SEK M1	585	514	2,070	2,056
Margin,%	9.9	9.5	9.5	9.7
EBITA, SEK M1	585	224	2,014	1,766
Margin, %	9.9	4.4	9.2	8.5
Profit after tax, SEK M	454	235	1,492	1,293
Earnings per share, SEK	1.27	0.66	4.18	3.64
Number of full-time employees	18,058	17,470	17,802	17,328
Billing ratio, %	74.1	74.1	74.1	74.3
Normal working hours	496	491	1,973	1,974
Net debt/EBITDA, x2			0.4	0.5

1) EBITA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITA. For further information, see pages 18 and 21. IAC stands for Items affecting comparability, see definition on page 18.

2) Net debt/EBITDA is an alternative performance measure (APM). Net debt is an alternative performance measure (APM) defined as financial debt (comprised almost exclusively of interest-bearing bank debt) less cash and cash equivalents and short-term investments. Lease liabilities are excluded from Net debt. EBITDA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes, Depreciation & amortisation and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITDA. For further information, see pages 18 and 27.

January–December

Net sales increased 4 per cent to SEK 21,792 million (20,858). Organic growth amounted to approximately 2 per cent after adjustment for calendar effects and IAC. Acquired growth amounted to 3 per cent and currency effects impacted growth with -1 per cent.

Organic growth adjusted for calendar effects and IAC was driven mainly by higher average fees and lower project adjustments.

EBITA increased to SEK 2,014 million (1,766). The EBITA margin increased to 9.2 per cent (8.5).

EBITA excluding IAC totalled SEK 2,070 million (2,056) and the EBITA margin excluding IAC amounted to 9.5 per cent (9.7).

EBITA excluding IAC increased approxmately SEK 8 million year-on-year, corresponding to 0 per cent, after adjustment for calendar effects. Overall for the Group, the EBITA increase was primarily driven by higher average fees, lower project adjustments and acquisitions while higher operating expenses and a lower billing ratio impacted negatively.

The year had one less working hour compared to last year. Due to mix effects, the effect in SEK was a positive year-on-year impact of approximately SEK 5 million on net sales and EBITA.

The billing ratio decreased to 74.1 per cent (74.3).

Total net financial items improved to SEK -77 million (-98), primarily due to a better interest net and lower interest cost for leasing. FX-related effects also had a positive impact.

Earnings per share increased to SEK 4.18 (3.64).

Employees

The number of full-time employees amounted to 17,802 (17,328) in the period.

Net sales by quarter and rolling 12 months

EBITA by quarter and rolling 12 months

SEK M

Quarter Rolling 12 months

Market

Overall, the underlying market for Sweco's services remained somewhat weak in the fourth quarter, due to the continued Covid-19 impact. Still, essentially all Business Areas experienced a relatively good market for Sweco's services in the infrastructure, water, environment, energy and industry segments. Demand for services in parts of the building and real estate segment remained weaker.

Outlook

The Covid-19 situation continues to create uncertainty regarding future market development. Demand for Sweco's services normally follows the general macro-economic trend in

Sweco's markets, with some time lag. Some remaining impact on demand can therefore be expected from the economic effects of Covid-19. However, this impact will most likely be partly mitigated by increased public spending.

Sweco does not provide forecasts.

Events during the quarter

No significant events during the quarter.

Events after the quarter

On 2 February, Sweco announced the acquistion of technical consultants Swedish Net Engineering, thereby strengthening Sweco's leading position on the Swedish market for technical and physical protection and security. Swedish Net Engineering was founded in 1998 and has 28 employees and annual net sales of around SEK 30 million.

Cash flow and financial position

Group cash flow from operating activities totalled SEK 2,199 million (3,249) for the full year. Net debt decreased slightly to SEK 913 million (943), with increased cash flow from operations balancing working capital build-up and distribution of an increased dividend.

The Net debt/EBITDA ratio was 0.4 x (0.5).

Available cash and cash equivalents, including unutilised credit lines, totalled SEK 4,166 million (3,898) at the end of the quarter.

Purchase considerations paid to acquire companies and operations totalled SEK 392 million (596) and had an impact of SEK -363 million (-535) on the Group's cash and cash equivalents. Purchase considierations received on the divestment of companies and operations totalled SEK 17 million (-) and had an impact of SEK 17 million (-) on the Group's cash and cash equivalents.

No repurchases of Sweco shares were made during the period or during the same period last year.

Investments, January–December 2021

Investments in equipment totalled SEK 176 million (187) and were primarily attributable to IT investments. Depreciation of equipment amounted to SEK 215 million (226) and amortisation of intangible assets totalled SEK 154 million (136).

Examples of new projects

Sweco Belgium has been engaged by biotech company Galapagos for a stability study and the sustainability certification of the company's international head office as well as the complete fit-out of its laboratories. The building will be highly energyefficient with green roofs, 700 solar panels, 500 bicycle racks and will accommodate up to 1,250 employees. The complex will have a total useful area of 22,000 m², of which 4,000 m² is allocated for research and development laboratories. Sweco's contract amounts to SEK 21 million.

Sweco Belgium has also been engaged by the high-voltage transmission system operator Elia, to map the various technical preconditions of an energy island in the Belgian part of the North Sea as well as developing a detailed construction phase plan. The project supports the Belgian government's initiative to almost triple the capacity of wind turbines at sea and by 2030, these turbines should cover the consumption of all Belgian households. Sweco's contract value for the first phase is SEK 1 million.

In Denmark, the central bank, Danmarks Nationalbank has engaged Sweco to carry out strategic and transverse construction management as well as working environment coordination, in connection with the required major restoration and renovation of its headquarters in Copenhagen. The aim of the project is to future-proof the building, as part of Danish cultural heritage and as a workplace. Services commence early 2022 and will continue until the client moves back into the building again in 2028.

In Finland, Hycamite TCD Technologies has selected Sweco to engineer its pilot plant for industrial hydrogen production. The plant will be built in Kokkola Industrial Park (KIP), which hosts the largest concentration of actors in the inorganic chemical industry in northern Europe. The client produces hydrogen and clean, solid carbon by decomposing methane molecules from natural gas and biogas. No greenhouse gas emissions are generated during the manufacturing process or from the combustion of the resulting hydrogen into electricity and heat, and the only end product is water. This process is emission-free, as carbon separates from the gas as a solid product. The hydrogen economy is the cornerstone of future energy production, offering society the opportunity to switch to clean energy.

In the Netherlands, railway management company ProRail has contracted Sweco to develop, manage and maintain the software required for supporting the measurement process for collecting railway track data. A ProRail ambition is to enable 30 per cent more rail traffic by 2030 and so the company is moving from corrective to preventive maintenance to keep the quality of the rail network at an optimal level. Sweco will assist ProRail in developing software to help monitor the status of the company's assets. The contract value is SEK 8 million and includes one year of development and then a maximum eight years of management and maintenance.

In Sweden, Sweco has been tasked with the project planning of a new 26 km overhead transmission line between Sigtuna and Sollentuna with a higher voltage level than the existing line. In addition, Sweco will also preplan the construction and renewal of about 100–150 km of overhead lines mainly in Uppsala County. The client Svenska Kraftnät, is a state-owned enterprise responsible for ensuring that Sweden has a safe, environmentally sound and cost-effective transmission system for electricity. As part of an assignment for the Swedish Energy Agency, Sweco previously estimated that Sweden's electricity consumption could increase by more than 20 TWh by 2030. The services will continue until 2028.

Sweco Sweden has also been commissioned by paperboard company Metsä Board to provide consulting services in structural engineering, for new construction at its board and pulp mill plant in Husum, Västernorrland. This will enable an increase in capacity in the production of folding boxboard, from 400,000 to 600,000 tonnes annually, meeting the increased demand for sustainably produced packaging materials. Services are expected to continue until December 2023 and the total contract value is SEK 21.5 million.

Sweco UK has been appointed by Roxbury as part of the design team to support the development of sustainable building design, which includes an innovative fin solution to allow natural ventilation within the occupancy spaces for the proposed office/ laboratory development Velum Sky in Geneva. The project will deliver best in class sustainable design with a focus on the end-user's wellbeing. The project is set to achieve one of Switzerland's first BREEAM Outstanding Certificates and energy consumption is targeted at 70 kWh/m²/annum, to meet the UKGBC's Paris Proof Target. The contract value is SEK 2 million.

In the UK, Sweco has been appointed by the Department for Education to develop heat decarbonisation plans for Bloom school estates across England. The scope includes site visits to more than 100 schools, and assessments of existing and potential heat technologies as well as energy efficiency improvements. Each heat decarbonisation plan sets out the approach to decarbonise the heating of the building by recommending alternative lowcarbon heating system and energy saving retrofit works. The contract value is SEK 5 million.

Sweco Norway has been engaged by contractor Bertelsen & Garpestad AS to design parts of a new section of the E39 road between Betna and Hestines in Heim municipality. The project is being carried out under a Design Build contract for the Norwegian Public Roads Administration, Statens vegvesen. The new section consists of 12.8 km of road with two lanes, including 11 bridges and underpasses. The services commenced November 2021 and will continue until 2024. The contract value is SEK 46 million.

Sweco Norway has also been engaged by real estate company Entra Eiendom AS to provide various consulting services in connection with one of their properties, a modern office block situated in the heart of the capital beside Oslo Central Station. Following previous collaboration with the client, Sweco has been providing detailed engineering and support during the construction phase since 2020 and our involvement will continue through to project completion in 2026. Sweco has detailed a complete 3D model of the existing building as well as the new building, which will be certified to BREEAM rating Very Good. The property will be connected to district heating and all electric heating will be removed. Large parts of the building's facades are also being modernised and one of the features will be green walls and roofs. The contract value is SEK 36 million.

As part of a consortium, Sweco in the Czech Republic has been engaged by Prague's water utility company PVS a.s. to prepare design documentation for the refurbishment and upgrade of selected facilities of the existing water line at Prague Central Wastewater Treatment Plant. Sweco is also responsible for the overall treatment process design and hydraulic assessment. The result will be modern sustainable facilities according to current requirements for water management and energy efficiency. The total capacity of the upgraded plant will be 1,600,000 PE and Sweco's share of the contract is SEK 29 million.

In Germany, Sweco is part of an engineering consortium with Kiefer und Kiefer, engaged by Deutsche Bahn Netz AG, for overall project management in connection with the reactivation of the Siemensbahn railway line, originally built in the 1920s. This follows the Siemens Group's decision to build the innovation and science campus "Siemensstadt 2.0" in the Spandau district of Berlin. The association has also been tasked with overall BIM coordination; project planning for traffic facilities; project and structural planning of civil engineering structures; and environmental planning. The line connects the campus to the S-Bahn network, to the main station and to the Berlin Brandenburg Airport and it has become part of the transportation policy agenda in the state of Berlin. The services commenced in October 2021 and will continue through to 2026. The contract amount is approximately SEK 51 million.

Sweco Netherlands has been contracted by railway management company ProRail to develop, manage and maintain the software required for supporting the measurement process for collecting data concerning the rail tracks.

Sweco Belgium has been engaged by the high-voltage transmission system operator Elia, to map the various technical preconditions of an energy island in the Belgian part of the North Sea.

Business Area Overview

Sweco's Business Areas are Sweden, Norway, Finland, Denmark, the Netherlands, Belgium, the UK and Germany and Central Europe.

established positions and it is primarily here that we will grow in the future. These markets are economically and politically stable, while also being close to each other geographically and culturally.

Sweco Sweden

Organic growth of 1 per cent adjusted for calendar effect, negatively affected by higher absence in the quarter. Good margin, but EBITA declined mainly due to higher absence and higher operating expenses. The market remains relatively good, but there was negative impact from Covid-19 in some segments.

Sales and profit, October–December

Net sales amounted to SEK 2,035 million (1,992). Organic growth adjusted for calendar effects was 1 per cent. The organic growth was mainly driven by higher average fees and lower project adjustments, while higher absence had an adverse effect. The year-on-year calendar effect of eight more hours had a positive impact of approximately SEK 26 million on net sales and EBITA.

EBITA decreased approximately 14 per cent, corresponding to SEK 40 million, after adjusting for calendar effects. The EBITA margin decreased to 13.2 per cent (14.2). The EBITA decline was mainly driven by higher operating expenses and higher absence, while higher fees impacted positively.

The Swedish market remained relatively good during the fourth quarter but there were variations between the different segments. Demand for infrastructure services was strong, backed by major public investments. The markets for industrial investments, water and environmental services were good. In the real estate market, there was good demand within public buildings and demand related to residential construction improved somewhat, with larger cities continuing to provide better conditions. The market for power transmission services was strong, while demand in energy generation remained challenging. Caution prevailed in the quarter with regard to starting new projects within the private building and real estate market.

Net sales & EBITA margin, rolling 12 months Net sales, SEK M EBITA margin, % 8,000 16

Net sales and profit	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales, SEK M	2,035	1,992	7,398	7,481
Organic growth, %	2	-3	-1	0
Acquisition-related growth, %	0	0	0	0
Currency, %	0	0	0	0
Total growth, %	2	-3	-1	0
Organic growth adj. for calendar, %	1	-4	-1	-1
EBITA, SEK M	269	282	920	954
EBITA margin, %	13.2	14.2	12.4	12.8
Number of full-time employees	5,869	5,877	5,796	5,828

Sweco Norway

Strong organic sales growth of 8 per cent and EBITA increase of 32 per cent, driven by lower negative project adjustments and higher hourly fees. Billing ratio improved, while higher absence and higher operating expenses impacted negatively. The market gradually improved.

Sales and profit, October–December

Net sales increased 16 per cent to SEK 719 million (620). Organic growth was 8 per cent. Acquired growth contributed 2 per cent and pertained to the acquisition of TAG Arkitekter in 2020. There was no year-on-year difference in the number of available working hours.

The positive organic growth was mainly driven by lower negative project adjustments and higher fees, while higher absence had a negative impact.

EBITA increased 32 per cent, corresponding to SEK 14 million, and the EBITA margin increased to 8.1 per cent (7.1). The EBITA increase was mainly driven by lower negative project adjustments, higher fees and a higher billing ratio, while higher absence and higher operating expenses impacted negatively.

Despite new Covid-19 restrictions implemented in December, the market gradually improved during the quarter. The national infrastructure market remained good and stable, while local public markets were affected by delayed decision making. The commercial building market improved.

Net sales & EBITA margin, rolling 12 months Net sales, SEK M EBITA margin, %

Net sales and profit	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales, SEK M	719	620	2,622	2,414
Organic growth, %	8	-4	2	1
Acquisition-related growth, %	2	3	5	1
Currency, %	6	-10	2	-9
Total growth, %	16	-10	9	-7
Organic growth adj. for calendar, %	8	-4	2	0
EBITA, SEK M	58	44	201	209
EBITA margin, %	8.1	7.1	7.7	8.6
Number of full-time employees	1,776	1,723	1,749	1,660

Sweco Finland

Net sales increased 10 per cent and EBITA increased 5 per cent, driven by higher average fees and the contribution from acquisitions. Higher operating expenses, lower billing ratio and higher absence impacted negatively. The market was relatively good, with some variations between segments.

Sales and profit, October–December

Net sales increased 10 per cent to SEK 802 million (729). Acquired growth contributed 10 per cent and pertained to recent acquisitions. Organic growth was 2 per cent and was impacted positively by higher average fees, while a lower billing ratio and higher absence had a negative effect. There was no year-on-year difference in the number of available working hours.

EBITA increased 5 per cent, corresponding to SEK 4 million. The EBITA margin amounted to 11.1 per cent (11.7). The increase in EBITA was

mainly attributable to higher average fees and the contribution from acquisitions, while higher operating expenses, a lower billing ratio and more absence impacted negatively.

Overall, the Finnish market was relatively good during the fourth quarter, with differences between segments. Demand for services within the building and real estate segments was relatively good, but there were variations between subsegments. The renovation, maintenance and improvement market was relatively stable. The market for industrial services was good, as was the market for infrastructure-related services.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales, SEK M	802	729	2,947	2,777
Organic growth, %	2	6	0	3
Acquisition-related growth, %	10	7	10	15
Currency, %	-1	-3	-3	-1
Total growth, %	10	10	6	16
Organic growth adj. for calendar, %	2	5	0	3
EBITA, SEK M	89	85	320	369
EBITA margin, %	11.1	11.7	10.9	13.3
Number of full-time employees	2,732	2,478	2,746	2,493

Sweco Denmark

The positive momentum in Denmark from the first nine months remained. Higher average fees and FTE growth drove continued organic growth and increased EBITA. More absence and higher operating expenses had a negative impact. Overall, the market was relatively stable.

Sales and profit, October–December

Net sales increased 3 per cent to SEK 512 million (500). Organic growth amounted to approximately 3 per cent adjusted for calendar effects. Organic growth was impacted positively by higher average fees and a higher number of employees, while more absence impacted negatively. The year-on-year calendar effect of eight more hours had a positive impact of approximately SEK 6 million on net sales and EBITA.

EBITA increased to SEK 55 million (50). Adjusting for calendar effects, EBITA decreased approximately 2 per cent, corresponding to SEK 1 million. The EBITA margin increased to 10.7 per cent (9.9). The EBITA decrease

was mainly driven by more absence and higher operating expenses, while higher average fees impacted positively.

Overall, the Danish market was stable during the fourth quarter, with slight differences between segments. Demand in the water and environmental sectors remained stable, driven by climate-related services in the larger cities. The infrastructure market is increasing both in the municipal as well as in the state financed road and rail infrastructure market. The Danish state has completed an infrastructure investment plan, which is expected to further increase demand. The market for building services and the residential market were relatively stable.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales, SEK M	512	500	1,905	1,846
Organic growth, %	4	1	5	-1
Acquisition-related growth, %	0	7	1	5
Currency, %	-1	-3	-3	-1
Total growth, %	3	5	3	3
Organic growth adj. for calendar, %	3	-1	5	-2
EBITA, SEK M	55	50	182	143
EBITA margin, %	10.7	9.9	9.6	7.8
Number of full-time employees	1,305	1,265	1,285	1,230

Sweco Netherlands

Organic growth was 3 per cent, adjusted for calendar effects, and the recent acquisition contributed 4 per cent to growth. EBITA increased 14 per cent due to a higher billing ratio, less absence and contribution from the acquisition. The market remained good during the quarter.

Sales and profit, October–December

Net sales increased to SEK 554 million (515). Organic growth amounted to approximately 3 per cent adjusted for calendar effects. Organic growth was impacted positively by more FTEs, a higher billing ratio and less absence. The year-on-year calendar effect of eight more hours had a positive impact of approximately SEK 7 million on net sales and EBITA.

EBITA increased to SEK 54 million (42). Adjusted for calendar effects, EBITA increased approximately 14 per cent, corresponding to SEK 6 million. The EBITA margin increased to 9.8 per cent (8.1). The EBITA increase was mainly attributable to a higher billing ratio, less absence and contribution from the acquisition.

Despite the Covid-19 situation, the Dutch market remained good during the fourth quarter, albeit with differences between segments. Demand for infrastructure services was good, backed by major public investments. Demand within residential building remained high due to the continued shortage of residential homes. In addition, the market for building services systems was good. In the market for industrial services, the food sector was stable and the chemical sector stabilised. Within the energy market there was substantial demand to increase infrastructure to facilitate green energy like solar energy and wind farms, and there was an increasing interest in hydrogen.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales, SEK M	554	515	2,024	2,066
Organic growth, %	5	-1	0	1
Acquisition-related growth, %	4	0	1	0
Currency, %	-1	-3	-3	-1
Total growth, %	8	-5	-2	1
Organic growth adj. for calendar, %	3	-3	0	1
EBITA, SEK M	54	42	201	172
EBITA margin, %	9.8	8.1	9.9	8.3
Number of full-time employees	1,421	1,378	1,376	1,390

Sweco Belgium

Continued high organic growth, driven by addition of FTEs, and significant growth also from acquisitions. EBITA impacted by higher absence in the quarter, outweighing the postive effects from top-line growth. The market was generally good and the industry market recovered from Covid-19 effects.

Sales and profit, October–December

Net sales increased 22 per cent to SEK 504 million (414). Acquisitions contributed 14 per cent to growth. Organic growth was approximately 8 per cent adjusted for calendar effects. Organic growth was mainly driven by FTE growth. The year-onyear calendar effect of eight more hours had a positive impact of approximately SEK 5 million on net sales and EBITA.

EBITA increased to SEK 50 million (46). Adjusted for calendar effects, EBITA decreased approximately 2 per cent, corresponding to SEK 1 million. The EBITA margin decreased to 9.8 per cent (11.0). The decrease was mainly

impacted by more absence, while continued FTE growth and the contribution from acquisitions had a positive effect.

The market remained good within most segments and both the private and the public sector building markets were stable. The residential market was stable as was the office market. The industry market was fully recovered from Covid-19 effects. The public infrastructure markets remained strong. Belgium is in the middle of a complete energy transition with a focus on decarbonisation in the transportation, building and industry sectors as well as transforming energy production. The electrification in industry and the public domain is increasing.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales, SEK M	504	414	1,907	1,655
Organic growth, %	10	-2	9	6
Acquisition-related growth, %	14	14	9	13
Currency, %	-1	-3	-3	-1
Total growth, %	22	9	15	19
Organic growth adj. for calendar, %	8	-1	9	6
EBITA, SEK M	50	46	230	189
EBITA margin, %	9,8	11.0	12,1	11.4
Number of full-time employees	1,399	1,124	1,276	1,071

Sweco UK

EBITA increased 9 per cent while net sales remained stable, despite more absence having an adverse effect. The UK market remains challenging. Some segments show signs of improvement, but Brexit-related supply problems and subsequent increases in material prices are impacting the construction market.

Sales and profit, October–December

Net sales increased 5 per cent to SEK 295 million (280). Net Sales growth was driven by currency effects. Organic growth was 0 per cent and was mainly driven by lower negative project adjustments, while fewer FTEs and more absence had a negative impact. There was no yearon-year difference in the number of available working hours.

EBITA increased 9 per cent, corresponding to SEK 1 million. The EBITA margin improved to 2.3 per cent (2.2). The earnings improvement was mainly driven by lower negative project adjustments, while more absence and higher operating expenses had an adverse effect.

The UK market remained challenging in the fourth quarter. The UK construction output slowed as materials, labour shortages and cost increases reduced activity. Some construction projects were postponed due to higher materials costs. Public sector infrastructure projects were at particular risk of facing these challenges. By contrast, there was positive demand for renovation work in the residential and commercial (private) sector. The energy, environment and water markets remained stable.

Net sales and profit	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales, SEK M	295	280	1,199	1,247
Organic growth, %	0	-13	-4	-7
Acquisition-related growth, %	0	0	0	16
Currency, %	6	-7	0	-2
Total growth, %	5	-20	-4	7
Organic growth adj. for calendar, %	0	-13	-4	-7
EBITA, SEK M	7	6	55	75
EBITA margin, %	2.3	2.2	4.6	6.0
Number of full-time employees	1,170	1,215	1,182	1,236

Sweco Germany and Central Europe

The new leadership continued to execute on the turnaround plan for the business. The quarter was positively affected by reaching agreement on additional work with several clients and general performance improvement. The market remained relatively stable with Covid-19 primarily impacting the private real estate market.

Sales and profit, October–December

Net sales amounted to SEK 568 million (175). Organic growth was approximately 21 per cent, adjusted for calendar effects and IAC. Organic growth primarily reflects a normalization of revenue compared to a very weak fourth quarter last year and was driven by positive project adjustments and higher average fees. There was no year-on-year difference in the number of available working hours.

EBITA increased to SEK 30 million (-317). Earnings last year were impacted by the project write-down of SEK 290 million and additional one-off costs and year-to-date corrections.

EBITA excluding IAC increased SEK 57 million and was driven by positive project adjustments and improving underlying performance in Germany.

A minor part of the improvement in the quarter was related to net writeups in the projects written down in the fourth quarter of last year.

Overall, parts of the German economy was impacted by Covid-19 restrictions and supply chain challenges in the fourth quarter. The private sector continued to slow down or stop projects in the construction and property development market. This was offset by increased spending in the public sector, which remained at high levels, and energy transition projects, which have continued as planned.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales, SEK M	568	175	2,015	1,657
Organic growth, %	223	-67	25	-20
Acquisition-related growth, %	0	0	0	7
Currency, %	2	-4	-4	-2
Total growth, %	224	-71	22	-15
Organic growth adj. for calendar, %	222	-69	25	-21
Organic growth adj. for calendar & IAC, %	21	-21	7	-6
EBITA excl. IAC, SEK M	30	-27	27	-9
EBITA margin excl. IAC, %	5.3	-5.7	1.3	-0.5
EBITA, SEK M	30	-317	-29	-299
EBITA margin, %	5.3	-180.8	-1.4	-18.1
Number of full-time employees	2,333	2,367	2,342	2,375

Other information

Parent Company, January–December 2021

Parent Company net sales totalled SEK 946 million (874) and were attributable to intra-group services. Profit after net financial items totalled SEK 817 million (1,036). Investments in equipment totalled SEK 42 million (32). Cash and cash equivalents at the end of the period totalled SEK 335 million (1,387).

Accounting principles

Sweco complies with the International Financial Reporting Standards (IFRS) and interpretive statements from the International Financial Reporting Interpretations Committee (IFRIC), as adopted by the EU. This report was prepared in accordance with IAS 34, Interim Reporting; the Swedish Annual Accounts Act; and the Swedish Financial Reporting Board's RFR 2, Reporting for Legal Entities. The Group applies the same accounting and valuation principles as those described in Note 1 in the Annual Report for 2020.

In this report, amounts in brackets refer to the corresponding period of the previous year. Because table items are individually rounded off, table figures do not always tally. The interim report comprises pages 1–27; the interim financial information presented on pages 1–27 is therefore part of this financial report.

Key performance measures

Sweco follows the guidelines from ESMA (European Securities and Markets Authority) regarding APMs (Alternative Performance Measures). In brief, these are measures of historical or ongoing operating results and financial performance that are not specified or defined in IFRS. The presentation of non-IFRS financial measures is limited as an analytical tool and should not be used as a substitute for key ratios pursuant to IFRS. Sweco believes that the APMs will enhance investors' evaluation of our ongoing operating results, aid in forecasting future periods and facilitate meaningful comparison of results between periods. The non-IFRS financial measures presented in this report may differ from similarly titled measures used by other companies. A complete list of all Sweco's definitions can be found on our website: https://www.swecogroup.com/ investor-relations/financial-information/definitions/

Sweco's main key financial metrics, defined as Alternative Performance Measures (APMs) in accordance with IFRS, are EBITA and Net debt/EBITDA.

EBITA is the Group's key metric for operational performance at Group and BA level. Sweco's EBITA measure is defined as Earnings Before Interest, Taxes and Acquisition-related items. All leases are treated as operating leases and the total cost of the lease affects EBITA. Operating lease treatment follows IAS 17 (the standard for leases applicable through 31 December 2018).

Net debt/EBITDA is Sweco's key metric for financial strength. The definition remains essentially in line with the covenants defined in Sweco's bank financing agreements. Net debt is defined as financial debt (comprised almost exclusively of interest-bearing bank debt) less cash and cash equivalents and short-term investments. Lease liabilities are excluded from Net debt. As with the calculation of EBITA, when calculating EBITDA all leases are assumed to comprise operating leases pursuant to IAS 17.

Items affecting comparability (IAC): To assist in understanding its operations, Sweco believes that it is useful to consider certain measures and ratios exclusive of items affecting comparability. Items affecting comparability include items that are non-recurring, have a significant impact and are considered to be important for understanding the operating performance when comparing results between periods. Items affecting comparability relate to restructuring and integration costs, costs related to acquisitions and divestments, project write-downs and other one-off items when amounts are significant. The items affecting comparability are disclosed in this report. All measures and ratios in this report have been disclosed including items affecting comparability first and then excluding items affecting comparability as a second measure when deemed appropriate.

The reconciliation of Sweco's key financial metrics, described above, and IFRS measures is presented on pages 20 and 27. The organic growth calculation is presented on page 26.

The Sweco share

The Sweco share is listed on Nasdaq Stockholm. The share price of the Sweco Class B share was SEK 170.20 at the end of the period, representing an increase of 23 per cent during the quarter. Nasdaq Stockholm OMXSPI increased 12 per cent over the same period.

The total number of shares at the end of the period was 363,251,457: 31,086,598 Class A shares and 332,164,859 Class B shares. The total number of shares outstanding was 357,485,070: 31,086,598 Class A shares and 326,398,472 Class B shares.

Board proposals to the AGM

Dividend: The Board of Directors proposes the dividend be increased to SEK 2.45 per share (2.20), with the total dividend limited to not more than SEK 890 million (782).

Share savings scheme 2022: The Board of Directors proposes that the 2022 AGM resolves to implement a longterm share savings scheme for up to 100 senior executives and other key employees within the Sweco Group. The proposed terms and conditions essentially correspond to those applicable in last year's proposal.

Share bonus scheme 2022: The Board of Directors also proposes that the 2022 AGM resolves to implement a sharebased incentive scheme for employees in Sweden. The proposal principally corresponds to the terms in last year's proposal.

Risks and uncertainties

Significant risks and uncertainties affecting the Sweco Group and the Parent Company include business risks associated with the general economic trend and investment level in various markets, the capacity to attract and retain skilled personnel, the effects of political decisions as well as risks und uncertainties related to the Covid-19 pandemic. The Group is also exposed to various types of financial risk, such as foreign currency, interest rate and credit risk. The risks to which Sweco is exposed are detailed in Sweco's 2020 Annual Report (page 96–97, Risks and Risk Management).

Calendar effects

Year 2021

The number of normal working hours in 2021, based on the 12-month sales-weighted business mix as of September 2020, is broken down as follows:

	2021	2020
Quarter 1:	487	500	-13
Quarter 2:	473	465	8
Quarter 3:	517	518	-1
Quarter 4:	496	491	5
Total:	1,973	1,974	-1

Year 2022

The number of normal working hours in 2022, based on the 12-month sales-weighted business mix as of September 2021, is broken down as follows:

	2022	2021
Quarter 1:	497	487	10
Quarter 2:	468	473	-5
Quarter 3:	516	517	-1
Quarter 4:	490	496	-6
Total:	1,971	1,973	-2

Acquisition-related amortisation

Acquisition-related intangible assets and expensed costs for future services will be amortised pursuant to the following schedule, based on acquisitions to date:

2021 Actual	SEK -145 million
2022 Estimate	SEK -99 million
2023 Estimate	SEK -56 million
2024 Estimate	SEK -23 million

Annual General Meeting

The 2022 Annual General Meeting will be held on Thursday, 21 April 2022 at 3:00 PM in Stockholm. Sweco's 2021 Annual and Sustainability Report will be available for shareholder perusal at Sweco's headquarters, Gjörwellsgatan 22, Stockholm, and on the company's website, www.swecogroup.com, approximately three weeks prior to the AGM.

Forthcoming financial information

Interim report January–March	12 May 2022
Interim report January–June	15 July 2022
Interim report January–September	27 October 2022
Year-end report 2022	9 February 2023

Stockholm, 11 February 2022

Åsa Bergman President and CEO, Member of the Board of Directors

For further information, please contact:

Åsa Bergman, President and CEO asa.bergman@sweco.se

Olof Stålnacke, CFO

Phone +46 70 306 46 21 olof.stalnacke@sweco.se

Johnny Nylund, Acting CCO

Phone +46 73 773 51 89 johnny.nylund@sweco.se

SWECO AB (publ) Org. nr. 556542-9841

Gjörwellsgatan 22, Box 34044, 100 26 Stockholm, Phone: +46 8 695 60 00 Email: info@sweco.se www.swecogroup.com

This report has not been subject to an audit or review.

KPIs

	Oct–Dec	Oct–Dec	Full-year	Full-year
KPIs1	2021	2020	2021	2020
Profitability
EBITA margin excl. IAC, %	9.9	9.5	9.5	9.7
EBITA margin, %	9.9	4.4	9.2	8.5
Operating margin (EBIT), %	9.8	4.8	9.1	8.2
Profit margin, %	9.5	4.4	8.7	7.7
Revenue growth2
Organic growth, %	11	-9	3	-1
Acquisition-related growth, %	3	3	3	4
Currency, %	1	-3	-1	-2
Total growth, %	15	-10	4	1
Organic growth adj. for calendar, %	11	-10	3	-2
Organic growth adj. for calendar & IAC, %	5	-5	2	-1
Debt
Net debt, SEK M			913	943
Interest-bearing debt, SEK M			1,808	3,031
Financial strength
Net debt/Equity, %			10.6	12.5
Net debt/EBITDA, x			0.4	0.5
Equity/Assets ratio, %			43.8	37.9
Available cash and cash equivalents, SEK M			4,166	3,898
– of which unutilised credit, SEK M			3,271	1,811
Return
Return on equity, %			18.5	17.6
Return on capital employed, %			15.0	12.9
Share data
Earnings per share, SEK	1.27	0.66	4.18	3.64
Diluted earnings per share, SEK	1.27	0.66	4.17	3.58
Equity per share, SEK3			24.04	21.25
Diluted equity per share, SEK3			23.89	21.07
Number of shares outstanding at reporting date			357,485,070	355,197,471
Number of repurchased Class B shares			5,766,387	8,053,986

1) The definitions of the Key Performance Indicators (KPIs) are available on Sweco's website.

2) See page 26 for details on Sweco's calculation of revenue growth.

3) Refers to portion attributable to Parent Company shareholders.

Reconciliation of EBIT and the APMs EBITA	Oct–Dec	Oct–Dec	Full-year	Full-year
and EBITDA, SEK M	2021	2020	2021	2020
Operating profit (EBIT)	582	248	1,974	1,706
Acquisition-related items	20	-5	104	135
Lease expenses1	-204	-207	-797	-782
Depreciation and impairments, right-of-use assets	188	188	733	708
EBITA2	585	224	2,014	1,766
Amortisation/depreciation and impairment,
tangible and intangible fixed assets	75	67	280	278
EBITDA3	661	292	2,294	2,044

1) Lease expenses pertain to adjustments made in order to treat all leases as operating leases.

2) EBITA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITA. 3) EBITDA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes, Depreciation & amortisation and Acquisition-related items, under which all leases are treated as

operating leases and the total cost of the lease affects EBITDA.

Reconciliation of the APMs EBITA and EBITA excl. IAC, SEK M	Oct–Dec 2021	Oct–Dec 2020	Full-year 2021	Full-year 2020
EBITA	585	224	2,014	1,766
Items affecting comparability (IAC)1	–	290	56	290
EBITA excl. IAC	585	514	2,070	2,056

1) Items affecting comparability encompass the provisions related to the execution of the turn-around plan in Germany of SEK 56 million in Q3 2021 and the write-down of working capital of SEK 290 million in the German operations in Q4 2020. Both are reported in Business Area Germany & Central Europe.

Consolidated income statement

SEK M	Oct–Dec 2021	Oct–Dec 2020	Full-year 2021	Full-year 2020
Net sales	5,920	5,142	21,792	20,858
Other income	2	3	11	7
Other external expenses	-1,257	-1,089	-4,234	-4,180
Personnel expenses	-3,801	-3,558	-14,477	-13,859
Amortisation/depreciation and impairment, tangible and intangible fixed assets1	-75	-67	-280	-278
Depreciation and impairment, right-of-use assets	-188	-188	-733	-708
Acquisition-related items2	-20	5	-104	-135
Operating profit (EBIT)	582	248	1,974	1,706
Net financial items3	-10	-11	-36	-46
Interest cost of leasing4	-11	-13	-46	-54
Other financial items5	2	3	5	2
Total net financial items	-18	-21	-77	-98
Profit before tax	564	226	1,897	1,608
Income tax	-110	9	-405	-316
PROFIT FOR THE PERIOD	454	235	1,492	1,293
Attributable to:
Parent Company shareholders	454	235	1,492	1,292
Non-controlling interests	0	0	0	1
Earnings per share attributable to Parent Company shareholders, SEK	1.27	0.66	4.18	3.64
Average number of shares outstanding	357,485,070	355,197,471	356,757,820	354,626,159
Dividend per share, SEK6			2.45	2.20

1) Includes tangible assets and intangible assets that are not acquisition-related.

2) Acquisition-related items consist of amortisation and impairment of goodwill and acquisition-related intangible assets, revaluation of purchase price, profit and losses on the divestment

of companies, operations, land and buildings, as well as costs for received future service. See page 24 for additional details. 3) Net financial items comprise interest expenses on credit facilities and costs related to credit facilities less interest income on cash and cash equivalents.

4) Interest cost of leasing comprises the interest cost of leasing pursuant to IFRS 16.

5) Other financial items: Result and distributions from participation in associated companies and other securities, result from sale of participations in associated companies and other securities, foreign exchange gains and losses on financial assets and liabilities, and other interest income and interest expenses.

Consolidated statement of comprehensive income

SEK M	Oct–Dec 2021	Oct–Dec 2020	Full-year 2021	Full-year 2020
Profit for the period	454	235	1,492	1,293
Items that will not be reversed in the income statement
Revaluation of defined benefit pensions, net after tax1, 2	4	-12	4	-34
Items that may subsequently be reversed in the income statement
Translation differences, net after tax	89	-187	180	-314
COMPREHENSIVE INCOME FOR THE PERIOD	547	37	1,676	945
Attributable to:
Parent Company shareholders	547	37	1,676	945
Non-controlling interests	0	0	0	0
1) Tax on revaluation of defined benefit pensions	-2	4	-2	11

2) Revalued annually. Reviewed quarterly in the event of material changes to actuarial assumptions.

Consolidated cash flow statement

SEK M	Oct–Dec 2021	Oct–Dec 2020	Full-year 2021	Full-year 2020
Profit before tax	564	226	1,897	1,608
Amortisation/depreciation and impairment	291	275	1,114	1,071
Other non-cash items	79	331	254	502
Cash flow from operating activities before changes in working capital, tax paid, interest paid and received	933	832	3,265	3,181
Interest cost leasing	-11	-13	-46	-54
Net interest paid	-4	-6	-16	-28
Tax paid	-32	-22	-432	-337
Changes in working capital	589	363	-573	488
Cash flow from operating activities	1,475	1,155	2,199	3,249
Acquisition and divestment of subsidiaries and operations	–	-207	-347	-535
Purchase and disposal of intangible and tangible assets	-69	-50	-229	-220
Other investing activities	0	4	-2	9
Cash flow from investing activities	-69	-253	-578	-746
Borrowings and repayment of borrowings	-724	-6	-1,316	376
Principal elements of lease payments	-188	-176	-743	-700
Dividends paid	–	-367	-782	-733
Cash flow from financing activities	-912	-548	-2,841	-1,056
CASH FLOW FOR THE PERIOD	494	353	-1,220	1,447

Consolidated balance sheet

SEK M	31 Dec 2021	31 Dec 2020
Goodwill	8,143	7,593
Other intangible assets	284	340
Property, plant and equipment	510	519
Right-of-use assets	2,508	2,705
Financial assets	347	391
Current assets excl. cash and cash equivalents	6,969	6,312
Cash and cash equivalents incl. short-term investments	896	2,088
TOTAL ASSETS	19,657	19,948
Equity attributable to Parent Company shareholders	8,594	7,548
Non-controlling interests	10	10
Total equity	8,604	7,557
Non-current lease liabilities	1,884	2,135
Non-current interest-bearing debt	1,805	2,996
Other non-current liabilities	873	832
Current lease liabilities	727	706
Current interest-bearing debt	4	34
Other current liabilities	5,759	5,688
TOTAL EQUITY AND LIABILITIES	19,657	19,948
Contingent liabilities	928	942

Consolidated statement of changes in equity

	Jan–Dec 2021			Jan–Dec 2020
SEK M	Equity attributable to Parent Company shareholders	Non controlling interests	Total equity	Equity attributable to Parent Company shareholders	Non controlling interests	Total equity
Equity, opening balance	7,548	10	7,557	7,154	10	7,164
Comprehensive income for the period	1,676	0	1,676	945	0	945
Transfer to shareholders	-782	0	-782	-732	0	-733
Share bonus scheme	146	–	146	177	–	177
Share savings schemes	6	–	6	5	–	5
EQUITY, CLOSING BALANCE	8,594	10	8,604	7,548	10	7,557

Acquisitions

The following acquisition of companies and operations were carried out during the period.

Company or operations1	Included from	Business area	Acquired share, %2	Annual net sales in SEK M3	Number of employees (individuals)
Bureau voor Urbanisme (BUUR) BV	January	Belgium	100	47	654
Linja Arkkitehdit Oy	April	Finland	100	54	59
Gaia Consulting Oy	April	Finland	100	67	58
Boydens Engineering Group	June	Belgium	100	103	140
AdviceU Group	August		100	35	30
Bureau Stedelijke Planning	September	Netherlands	100	59	31
Other5			–	15	19
TOTAL				380	402

1) Acquired goodwill attributable to acquisition of assets is tax deductible in event of future write-downs.

2) No acquired ownership share reported for asset deals. 3) Estimated annual net sales.

4) Of which 63 self employed.

5) Acqusition of Wendelbo Landskap AS (Norway), Arcade Concept Engineering (Belgium) and Mark & Pieler Ingeniuere (Germany).

During the period, the acquired companies contributed SEK 238 million in net sales, SEK 21 million in EBITA and SEK 4 million in operating profit (EBIT). If the companies had been owned as of 1 January 2021 they would have contributed approximately SEK 392 million in net sales, about SEK 26 million in EBITA and about SEK 1 million in operating profit (EBIT). The transaction costs for the acquisitions during this period and the previous period totalled SEK 8 million.

The purchase considerations of the acquisitions carried out in the period totalled SEK 392 million and had a negative impact on cash and cash equivalents of SEK 363 million. The acquisition analyses regarding Linja Arkkitehdit Oy, Gaia Consulting Oy, Arcade Concept Engineering, Mark & Pieler Ingeniuere, Boydens Engineering, AdviceU and Bureau Stedelijke Planning are preliminary. The acquisitions impacted the consolidated balance sheet as detailed in the table below.

Acquisitions, SEK M
Intangible assets	402
Property, plant and equipment	10
Right-of-use assets	40
Financial assets	2
Current assets	131
Non-current lease liabilities	-23
Non-current other liabilities	-8
Deferred tax	-13
Current lease liabilities	-15
Other current liabilities	-134
Total purchase consideration	392
Purchase price outstanding	-5
Payment of deferred purchase price	19
Cash and cash equivalents in acquired companies	-42
DECREASE IN GROUP CASH AND CASH EQUIVALENTS	363

Divestments

In the beginning of the year, Sweco divested its Norwegian subsidiary Årstiderne Arkitekter AS with 3 employees. During the third quarter, Sweco divested the Geolab business in Sweden with 11 employees. The divestment contributed SEK 9 million in net sales and SEK 1 million in operating profit during the period. The divestment had a positve impact on profit and Group's cash and cash equivalents of SEK 17 million. The impact of the divestments on the consolidated balance sheet was limited.

Acquisition-related items

SEK M	Oct–Dec 2021	Oct–Dec 2020	Full-year 2021	Full-year 2020
Amortisation of acquisition-related intangible assets	-28	-20	-100	-85
Revaluation of additional purchase price	18	0	16	-38
Profit/loss on divestment of buildings and land	–	6	–	6
Profit/loss on divestment of companies and operations1	1	29	24	29
Cost for received future service	-11	-11	-45	-47
ACQUISITION-RELATED ITEMS	-20	5	-104	-135

1) Provision for exposure in a previous divestment was released during the third quarter and amounted to SEK 5 million. The divestment of the Geolab business in Sweden during the third quarter resulted in a profit of SEK 17 million.

Fair value of financial instruments

The Group's financial instruments consist of shares, trade receivables, other receivables, cash and cash equivalents, trade payables, forward exchange contracts, interest bearing liabilities, other liabilities, and contingent considerations. Descriptions of each category and valuation techniques for the different levels are shown below and in the 2020 Annual Report, Note 33 Financial instrument per category. No transfers between any of the levels took place during the period.

Forward exchange contracts are measured at fair value based on Level 2 inputs. As per 31 December 2021, forward contracts with a positive market value amounted to SEK 0 million compared with SEK 1 million as per 31 December 2020 and forward contracts with a negative market value amounted to SEK 0 million compared with SEK 0 million as per 31 December 2020. Unlisted financial assets and contingent considerations are measured at fair value based on Level 3 inputs. The fair value of unlisted financial assets amounted to SEK 10 million as per 31 December 2021 compared with SEK 10 million as per 31 December 2020, and financial liabilities for contingent considerations amounted to SEK 15 million compared with SEK 49 million as per 31 December 2020. Other financial assets and liabilities are measured at accrued amortised cost. Accrued amortised cost is considered a good approximation of fair value since the fixed interest period for all loans is less than one year.

Quarterly review per business area

	2021 Q4	2021 Q3	2021 Q2	2021 Q1	2020 Q4	2020 Q3	2020 Q2	2020 Q1	2019 Q4
Net sales, SEK M
Sweco Sweden	2,035	1,446	2,012	1,905	1,992	1,489	2,015	1,985	2,054
Sweco Norway	719	533	696	675	620	489	598	708	692
Sweco Finland	802	646	776	723	729	584	726	738	663
Sweco Denmark	512	436	476	480	500	421	467	458	477
Sweco Netherlands	554	448	495	528	515	466	538	547	542
Sweco Belgium	504	450	474	478	414	392	418	431	381
Sweco UK	295	302	289	313	280	280	305	382	348
Sweco Germany & Central Europe	568	477	487	483	175	481	504	497	605
Group-wide, Eliminations, etc.	-70	-48	-62	-47	-83	-56	-81	-65	-71
TOTAL NET SALES	5,920	4,691	5,643	5,538	5,142	4,547	5,489	5,680	5,692
Items affecting comparability (IAC)2	–	16	–	–	290	–	–	–	–
TOTAL NET SALES excl. IAC	5,920	4,707	5,643	5,538	5,432	4,547	5,489	5,680	5,692
EBITA, SEK M1
Sweco Sweden	269	132	272	247	282	149	253	269	271
Sweco Norway	58	24	65	53	44	44	24	97	65
Sweco Finland	89	84	72	76	85	80	104	101	64
Sweco Denmark	55	50	37	41	50	41	22	30	41
Sweco Netherlands	54	34	40	73	42	44	35	51	39
Sweco Belgium	50	57	59	65	46	48	45	50	41
Sweco UK	7	28	4	16	6	9	21	40	24
Sweco Germany & Central Europe	30	-48	-9	-3	-317	0	8	9	21
Group-wide, Eliminations, etc.	-26	-1	-12	-27	-13	2	-18	-17	-34
EBITA	585	359	529	540	224	417	495	630	532
Items affecting comparability (IAC)2	–	56	–	–	290	–	–	–	–
EBITA excl. IAC	585	415	529	540	514	417	495	630	532
EBITA margin, %1
Sweco Sweden	13.2	9.1	13.5	13.0	14.2	10.0	12.6	13.6	13.2
Sweco Norway	8.1	4.6	9.4	7.8	7.1	8.9	4.1	13.7	9.4
Sweco Finland	11.1	13.0	9.2	10.5	11.7	13.7	14.3	13.7	9.6
Sweco Denmark	10.7	11.4	7.7	8.6	9.9	9.7	4.8	6.7	8.6
Sweco Netherlands	9.8	7.5	8.1	13.8	8.1	9.4	6.6	9.4	7.2
Sweco Belgium	9.8	12.6	12.5	13.5	11.0	12.3	10.8	11.5	10.7
Sweco UK	2.3	9.3	1.5	5.1	2.2	3.1	6.8	10.4	7.0
Sweco Germany & Central Europe	5.3	-10.1	-1.8	-0.5	-180.8	0.0	1.7	1.8	3.5
EBITA margin	9.9	7.6	9.4	9.8	4.4	9.2	9.0	11.1	9.4
Items affecting comparability (IAC)2	–	1.2	–	–	5.1	–	–	–	–
EBITA margin excl. IAC	9.9	8.8	9.4	9.8	9.5	9.2	9.0	11.1	9.4
Billing ratio, %	74.1	73.7	75.0	73.6	74.1	73.8	75.5	73.6	74.6
Number of normal working hours	496	517	473	487	491	518	465	500	485
Number of full-time employees	18,058	17,627	17,904	17,628	17,470	16,988	17,555	17,330	17,084

1) EBITA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITA.

2) Items affecting comparability encompass the provisions related to the execution of the turn-around plan in Germany of SEK 56 million in Q3 2021 and the write-down of working capital of SEK 290 million in the German operations in Q4 2020. Both are reported in Business Area Germany & Central Europe.

Period review per business area

January–December		Net sales, SEK M		EBITA, SEK M2		EBITA margin, %2		Number of full time employees
Business Area1	2021	2020	2021	2020	2021	2020	2021	2020
Sweco Sweden	7,398	7,481	920	954	12.4	12.8	5,796	5,828
Sweco Norway	2,622	2,414	201	209	7.7	8.6	1,749	1,660
Sweco Finland	2,947	2,777	320	369	10.9	13.3	2,746	2,493
Sweco Denmark	1,905	1,846	182	143	9.6	7.8	1,285	1,230
Sweco Netherlands	2,024	2,066	201	172	9.9	8.3	1,376	1,390
Sweco Belgium	1,907	1,655	230	189	12.1	11.4	1,276	1,071
Sweco UK	1,199	1,247	55	75	4.6	6.0	1,182	1,236
Sweco Germany & Central Europe	2,015	1,657	-29	-299	-1.4	-18.1	2,342	2,375
Group-wide, Eliminations, etc.3	-227	-285	-67	-47	–	–	50	45
TOTAL GROUP	21,792	20,858	2,014	1,766	9.2	8.5	17,802	17,328

1) Sweco is not applying IFRS 16 at the business area level.

2) EBITA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITA.

3) Group-wide, Eliminations, etc. includes Group functions and the Dutch real estate operations.

Net sales growth

The table below shows the calculation of organic growth excluding calendar effect and items affecting comparability – i.e., net sales growth adjusted for the impact of acquisitions and divestments as well as the effect of foreign currency fluctuations, calendar effect and items affecting comparability.

	Oct–Dec	Oct–Dec	Oct–Dec	Jan–Dec	Jan–Dec	Jan–Dec
	2021	2020	2021	2021	2020	2021
Reported net sales	5,920	5,142	15	21,792	20,858	4
Adjustment for currency effects		27	1		-276	-1
Net sales, currency-adjusted	5,920	5,170	15	21,792	20,582	6
Adjustment for acquisitions/divestments	-169	-4	3	-584	-7	3
Comparable net sales, currency-adjusted	5,751	5,165	11	21,208	20,575	3
Adjustment of calendar effect	-44		1	-5		0
Comparable net sales, adjusted for currency
and calendar effects	5,707	5,165	11	21,202	20,575	3
Adjustment of items affecting comparability		290	6	16	290	1
Comparable net sales, adjusted for currency,
calendar effects and items affecting comparability	5,707	5,455	5	21,218	20,865	2

	Oct–Dec 2020	Oct–Dec 2019	Growth, % Oct–Dec 2020	Jan–Dec 2020	Jan–Dec 2019	Growth, % Jan–Dec 2020
Reported net sales	5,142	5,692	-10	20,858	20,629	1
Adjustment for currency effects		-186	-3		-372	-2
Net sales, currency-adjusted	5,142	5,505	-6	20,858	20,257	3
Adjustment for acquisitions/divestments	-155	-9	3	-999	-103	4
Comparable net sales, currency-adjusted	4,987	5,497	-9	19,860	20,154	-1
Adjustment of calendar effect	-55		1	-102		0
Comparable net sales, adjusted for currency and calendar effects	4,932	5,497	-10	19,758	20,154	-2
Adjustment of items affecting comparability	290		-5	290		-1
Comparable net sales, adjusted for currency, calendar effects and items affecting comparability	5,222	5,497	-5	20,048	20,154	-1

Net debt

SEK M	31 Dec 2021	31 Dec 2020
Non-current interest-bearing debt	1,805	2,996
Current interest-bearing debt	4	34
Cash and cash equivalents incl. short-term investments	-896	-2,088
NET DEBT1	913	943

1) Net debt is an alternative performance measure (APM) defined as financial debt (comprised almost exclusively of interest-bearing bank debt) less cash and cash equivalents and short-term investments. Lease liabilities are excluded from Net debt.

Parent Company income statement

SEK M	Full-year 2021	Full-year 2020
Net sales	946	874
Operating expenses	-1,018	-909
Operating loss	-72	-35
Net financial items	889	1,071
Profit/loss after net financial items	817	1,036
Appropriations	-110	-180
Profit/loss before tax	707	856
Tax	-68	-117
PROFIT/LOSS AFTER TAX	639	739

Parent Company balance sheet

SEK M	31 Dec 2021	31 Dec 2020
Intangible assets	19	24
Property, plant and equipment	70	60
Financial assets	6,547	6,541
Current assets	1,998	4,593
TOTAL ASSETS	8,634	11,218
Equity	4,683	4,673
Untaxed reserves	764	654
Non-current liabilities	1,694	2,906
Current liabilities	1,493	2,985
TOTAL EQUITY AND LIABILITIES	8,634	11,218