Sweco

Earnings Release • Oct 25, 2019

25 October 2019

CONTINUED PROFITABLE GROWTH

JULY - SEPTEMBER 2019

• Net sales increased to SEK 4,623 million (4,078)
• · EBITA increased to SEK 384 million (263), margin 8.3 per cent (6.5)
• •
• Profit after tax increased to SEK 249 million (169), corresponding to SEK 2.12 per share (1.43)

JANUARY - SEPTEMBER 2019

• Net sales increased to SEK 14,938 million (13,623)
• EBITA increased to SEK 1,337 million (1,135), margin 8.9 per cent (8.3)
• · EBIT increased to SEK 1,296 million (1,126), margin 8.7 per cent (8.3)
• Profit after tax increased to SEK 921 million (797), corresponding to SEK 7.84 per share (6.71)
• · Net debt decreased to SEK 2,511 million (2,650)
• · Net debt/EBITDA decreased to 1.2 x (1.4)

COMMENTS FROM PRESIDENT AND CEO ÅSA BERGMAN:

Sweco continues to deliver profitable growth, in line trend from recent quarters. In the quarter, EBITA increased around 22 per cent or SEK 58 million and organic growth amounted to around 6 per cent, after adjustment for calendar effects. The improved performance was driven by positive fee development and an increased number of employees, supported by a solid order backlog.

In particular, Finland and Belgium performed strongly, combining good organic growth with profitability improvements. Sweden continues to deliver industry leading profitability, combined with solid organic growth. The acquisitions announced last quarter, MLM Group in the UK and Imp GmbH in Germany, also contributed positively.

On 12 August, Sweco signed an agreement to acquire the rail infrastructure engineering and consulting services business from NRC Group. The Finnish competition authority has approved the acquisition which will be closed on 1 November.

Overall, the market for Sweco's services is good and largely unchanged compared with recent quarters. Essentially all Business Areas are experiencing a good market for Sweco's services in the infrastructure, water and industry segments. Demand for services in the real estate segment is good overall while the residential segment remains weak in several countries.

Sweco plans and designs tomorrow's communities. Our vork produces sustainable buildings, efficient infrastructure and access to electricity and clean water. With more than 16,000 fulfime employees in Europe, we offer our every project. We cary outprojects in some 70 countries annually throughout the word. Sweco is Europe's leading engineering and architecture consumately SEK 18.7 billion (EUR 1.8 billion). The company is listed on Nasda Stockholm This information in information that Sweco is oblig pursuant to the EU Market. Nove Pegulation and the Sesurities Markets Act. The information was submitted for publication, through the agency of the contact persons, at around 07:20 CET on 25 October 2019.

SWECO

PROFIT AND OPERATIONS

JULY-SEPTEMBER

Organic growth amounted to approximately 6 per cent after adjustment for calendar effects. Acquired growth amounted to 4 per cent. In addition, currency effects contributed 1 per cent to net sales, which in total increased 13 per cent to SEK 4,623 million (4,078).

Organic growth was mainly driven by an increased number of employees and positive fee development, supported by a solid order backlog in all Business Areas. Organic growth adjusted for calendar effects was particularly strong in Belgium, Finland and Germany & Central Europe. Acquired growth was predominantly driven by the acquisitions of MLM in the UK and of Imp in Germany.

EBITA increased to SEK 384 million (263), an improvement of SEK 121 million.

EBITA increased approximately 22 per cent or SEK 58 million year-on-year after adjustment for calendar effects. The EBITA improvement was mainly attributable to Belgium, Finland and Denmark. Overall for the Group, a positive trend in hourly fees and an increased number of employees were the main drivers of increased EBITA.

The quarter had 8 more working hours compared with same period last year. This had a positive year-on-year impact of approximately SEK 63 million on earnings and net sales.

The billing ratio decreased slightly to 73.6 per cent (73.7). The billing ratio increased in Finland, the Netherlands and Belgium, while it declined in the other Business Areas.

Total net financial items improved to SEK -30 million (-41) due primarily to foreign exchange revaluation effects.

JANUARY-SEPTEMBER

Net sales increased 10 per cent to SEK 14,938 million (13,623). Organic growth was 5 per cent after adjustment for calendar effects. Acquired growth contributed 3 per cent, while currency effects contributed 2 per cent.

EBITA increased to SEK 1,337 million (1,135), an improvement of SEK 202 million.

EBITA increased SEK 183 million after adjustment for calendar effects. The improvement was mainly attributable to Finland, Belgium, Norway and Sweden. Overall for the Group, a positive trend in hourly fees and an increased number of employees were the main drivers of increased FRITA

The calendar effect of 2 more hours had a positive yearon-year impact of approximately SEK 19 million on net sales and EBITA.

The billing ratio decreased slightly to 74.2 per cent (74.5).

Total net financial items reduced to SEK -89 million (-84) due primarily to higher interest expenses.

Earnings per share increased to SEK 7.84 per share (6.71).

					Oct 2018-
Key ratios	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018	Sep 2019	Full-year 2018
Net sales, SEK M	4,623	4.078	14.938	13.623	20.049	18.735
Organic growth, %	8	4	5	4		5
Acquisition-related growth, %	4	3	3	3		3
Currency, %	1	5	2	3		3
EBITA, SEK M2	384	263	1.337	1.135	1.830	1.629
Margin, %	8.3	6.5	8.9	8.3	9.1	8.7
Profit after tax, SEK M	249	169	921	797	1.380	1,256
Earnings per share, SEK	2.12	1.43	7.84	6.71	11.74	10.59
Number of full-time employees	16.463	15.197	16.191	15.187	16.060	15,306
Billing ratio, %	73.6	73.7	74.2	74.5	74.3	74.5
Normal working hours	519	511	1.477	1,475	1,966	1,964
Net debt/EBITDA, x21			1.2	1.4		1.0

4 EBITA is an alternative performance measure (APM) defore Interest, Taxes and Acquisition-related tems, under which all leases are treated as operating leases and the total cost of the lease affects EBITA. For further information, see page 9-10 and 12.

2) Net debt/EBITDA is an alternative performance measure (APM). Net debt is an alternative performance measure (APM) defined as net financial debt (comprised almost exclusively of interest-bearing bank debt) less cash equivalents and short-term investments. Lease liabilities are excluded from Net debt. EBTDA is an alternative performance measure (APM) definest, Taxes, Depreciation & anortisation and Aquisition-related items, under which all leases are treated as operatingleases and the total cost of the lease affects EBITDA. For further information, see page 9-10 and 12.

Net sales by quarter and rolling 12 months SEK million, Actual

FXAMPLES OF NEW PROJECTS

In a consortium, Sweco will provide process guidance and set out the mobility vision for several transport regions in Belgium. The project has been commissioned by the Flemish Department of Mobility and Public Works and is worth approximately EUR 3.4 million. The consortium is currently drawing up the mobility plan for the transport region of Antwerp. All transport regions in Flanders have a framework within which they can collaborate on mobility challenges. Our assignment will assist 155 of the 300 Flemish municipalities to set a mobility vision for all modes of transport, including public transport networks, measures for improving traffic flow, traffic safety and cycling policies.

Sweco is assigned by the Swedish Transport Administration to update the signal system between Âlvsjö and Huddinge in the Stockholm area. The assignment also includes implementing speed increases from 120 km/h to 160 km/h in order to create a more efficient transport system. The signaling system on the route needs to be modernised and Sweco will, on behalf of the Swedish Transport Administration, produce the request documentation for the upcoming contract. Sweco will also support in transforming it to a more flexible system that allows more frequent train traffic.

Sweco will assist the Dutch National police in the coming years with technical advice on their housing assignment. In addition to the realisation of more than three hundred projects and the search for a new destination for more than two hundred buildings, the existing buildings must also improve in quality with extra attention to sustainability. To ensure that this runs smoothly, the police set up a Technical Expertise Center (TEC) that acts as an independent team. It is a four-year framework contract with the possible extension for another four years with an annual volume of around EUR 4.8 million. In addition to Sweco, two other engineering firms are associated with this assignment.

MARKET

Overall, the market for Sweco's services is good and largely unchanged compared with recent quarters. Essentially all Business Areas are experiencing a good market for Sweco's services in the infrastructure, water and industry segments. Demand for services in the real

EBITA by quarter and rolling 12 months SEK million, Actual

estate segment is good overall while the residential segment remains weak in several countries.

OUTLOOK

Demand for Sweco's services predominantly follows the general macroeconomic trend in Sweco's markets, with some time lag. Northern European GDP development is solid. Political uncertainty, the global macroeconomic situation and events in the financial market comprise risk factors in terms of future performance.

Sweco does not provide forecasts.

EVENTS DURING THE QUARTER

On 1 July, Sweco acquired Tovatt Architects & Planners, a Swedish architecture firm with 20 employees, thereby strengthening its position in urban planning and building architecture. Tovatt has a long tradition of designing sustainable everyday environments for future city residents, both in Sweden and internationally. Historically, the company arose from Ralph Erskine Architect & Planner and Erskine Tovatt Architects.

On 5 July, Sweco completed the acquisition of Imp GmbH in Germany - a consulting company with 380 employees, active predominantly in the power transmission and distribution networks markets. Sweco's ability to support clients in the ongoing transition toward renewable energy in Germany is strengthened by Imp, which has annual net sales of about SEK 210 million and an EBITA of approximately SEK 21 million.

On 12 August, Sweco signed an agreement to acquire the rail infrastructure engineering and consulting services business from NRC Group. With the acquisition, Sweco becomes the leading, full-service railway design expert in Finland, while at the same time reinforcing the position in Sweden. The acquisition brings 320 new railway design experts to Sweco, located in Finland (80 per cent) and Sweden (20 per cent). The Finnish competition authority has approved the acquisition which will be closed on 1 November

As of 1 July, Martin Aronsson, previously Head of Business Development, holds the role as Chief Strategy and Mergers & Acquisitions Officer and thereby became a member of the Executive Team.

SWECO

FVENTS AFTER THE QUARTER

On 1 October, Mattias Goldmann took on the role as new Chief Sustainability Officer at Sweco Sweden. Mattias will also support the Group on sustainability.

On 17 October, Olof Stålnacke took office as Chief Financial Officer of Sweco AB and joined the Executive Team.

CASH FLOW AND FINANCIAL POSITION Group cash flow from operating activities totalled SEK 1,245 million (835) for the first nine months of the year. Net debt decreased to SEK 2,511 million (2,650). Net debt was impacted negatively by recent acquisitions, while lower working capital levels contributed positively.

The Net debt/EBITDA ratio was 1.2 x (1.4).

Available cash and cash equivalents, including unutilised credit lines, totalled SEK 2,377 million (995) at the end of the reporting period.

Purchase considerations paid to acquire companies and operations totalled SEK 525 million (241) and had an impact of SEK -459 million (-233) on the Group's cash and cash equivalents. Purchase considerations received on the divestment of companies and operations totalled SEK 22 million (5) and had an impact of SEK 18 million (-1) on the Group's cash and cash equivalents.

Repurchases of Sweco shares totalled SEK 2 million (283) and had the same effect on the Group's cash and cash equivalents.

Dividends totalling SEK 644 million (593) were distributed to Sweco AB's shareholders during the period.

INVESTMENTS, JANUARY-SEPTEMBER 2019 Investments in equipment totalled SEK 177 million (208) and were primarily attributable to IT investments. Depreciation of equipment amounted to SEK 177 million (154) and amortisation of intangible assets totalled SEK 103 million (85).

SWECO SWEDEN

SALES AND PROFIT, JULY-SEPTEMBER

Organic growth amounted to approximately 5 per cent and EBITA decreased around SEK 5 million, after adjustment for calendar effects. The order backlog, hourly fees and number of employees continued to develop positively during the quarter. However, a lower billing ratio had a negative impact on net sales and profit. The year-on-year calendar effect of 8 more hours had a positive impact of approximately SEK 24 million on net sales and EBITA.

The Swedish market remains good but there are different segments. Demand for infrastructure services remains strong, backed by major public investments. The markets for industrial investments, water and environmental services are good. The real estate market is divided, with good demand within public buildings, whereas demand related to residential construction remains weak in Sweden. The market for power transmission services is strong while demand in energy generation remains challenging.

IN DNIEF
Net sales and profit	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018
Net sales. SEK M	1.519	1.427	5.428	5.227
Urganic growth, %			5	5
Acquisition-related growth, %	0	-1	-1
Currency, %	0		0	0
EBITA. SEK M	102	83	587	550
EBITA margin, %	6.7	5.8	10.8	10.5
Number of full-time employees	5.720	5.490	5.825	5.584

SWECO NORWAY

IN DDICC

SALES AND PROFIT. JULY-SEPTEMBER

Organic growth was approximately 6 per cent, after adjustment for calendar effects. Organic growth was mainly driven by an increased number of employees and higher hourly fees, and was supported by a solid order backlog. The year-on-year calendar effect of 8 more hours had a positive impact of approximately SEK 8 million on net sales and EBITA.

EBTA increased approximately SEK 6 million, after adjustment for calendar effects. EBITA was impacted positively by higher hourly fees and an increased number of employees, whereas a lower billing ratio had a negative impact.

Overall, the Norwegian market remains good, with a historically strong infrastructure market dominated by large scale rail and road projects. The residential market is weakening, albeit from a high level, while the market for office buildings is flat. Investments in energy production are still decreasing, including a declining market for energy transmission.

IN BRIEF
Net sales and profit	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018
Net sales. SEK M	550	516	1.914	1.732
Organic growth, %		13	O	8
Acquisition-related growth, %	0	4	0	4
Currency, %	-1			3
EBITA. SEK M	55	41	151	119
EBITA margin, %	10.0	8.0	7.9	6.9
Number of full-time employees	1.545	1.474	1.549	1.455

SWECO FINLAND

SALES AND PROFIT, JULY-SEPTEMBER

Net sales increased to SEK 536 million (465). Organic growth was approximately 11 per cent, after adjustment for calendar effects. Organic growth was mainly driven by improved average fees and a higher billing ratio.

EBITA increased approximately SEK 22 million, after adjustment for calendar effects, and the margin improved to 14.2 per cent (9.9). The increase in EBITA was mainly attributable to improved average fees and a higher billing ratio. The year-on-year calendar effect of 8 more hours had a positive impact of approximately SEK 8 million on net sales and EBITA.

The Finnish and Estonian market is good overall, but there are slight differences between segments. Demand for services within the construction and real estate segments is good overall. Residential construction is declining. The renovation maintenance improvement market continues to grow. The market for industrial services is stable. The market for infrastructure-related services is satisfactory and pre-studies for future state level railway investments have been started.

IN BRIEF
Net sales and profit	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018
Net sales. SEK M	536	465	1.725	1.516
Organic growth, %	12	-1	8
Acquisition-related growth, %	1	2	2
Currency, %	2		3
EBITA. SEK M	76	46	223	144
EBITA margin, %	14.2	99	129	9.5
Number of full-time employees	2.128	2.071	2.143	2.077

SWECO DENMARK

SALES AND PROFIT, JULY-SEPTEMBER

Net sales increased to SEK 410 million (403). Organic growth was approximately -2 per cent, after adjustment for calendar effects. Organic growth was impacted negatively by a lower number of employees and a lower billing ratio. The calendar effect of 8 more hours had a positive impact of approximately SEK 5 million on net sales and EBITA.

EBITA increased approximately SEK 12 million, after adjustment for calendar effects. The EBTA improvement was primarily attributable to higher average fees and positive project adjustments, while a lower billing ratio impacted negatively.

The market in Denmark is satisfactory overall. Demand in the water and environmental sectors remains stable, driven by climate-related services in the larger cities. The energy market is driven by transmission, gas and wind but it remains weak. The infrastructure market is fairly stable, however with a decline in state financed road and rail projects due to lack of a new national infrastructure plan. The market for building services remains good overall, but the residential market remains weak.

IN RRIEF
Net sales and profit	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018
Net sales. SEK M	410	403	1.307	1.247
Organic growth, %	-1	2	-3	-4
Acquisition-related growth, %		27	5	19
Currency, %	2	0	3
EBITA. SEK M	44	27	96	01
EBITA margin, %	10.7	6.7	7.4	7.3
Number of full-time employees	1.156	1.210	1.174	1.184

SWECO NETHERLANDS

SALES AND PROFIT, JULY-SEPTEMBER

Net sales increased to SEK 488 million (447). Organic growth amounted to 5 per cent after adjustment for calendar effects and was driven by higher average fees, an increased number of employees and an improved billing ratio.

EBTA increased approximately SEK 6 million after adjustment for calendar effects. The EBITA margin increased to 5.0 per cent (2.8). The improvement of EBTA was attributable to higher average fees, an improved billing ratio and an increased number of employees. The year-on-year calendar effect of 8 more hours had a positive impact of approximately SEK 6 million on net sales and EBITA.

The Dutch economy is strong, and the engineering market remains positive, as is the demand for Sweco's services within infrastructure, energy, water and public sector buildings.

IN BRIEF
Net sales and profit	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018
Net sales. SEK M	488	447	1,513	1.406
Organic growth, %		C	4	5
Acquisition-related growth, %	0		0
Currency, %	2		3
EBITA. SEK M	24	13	104	84
EBITA margin, %	5.0	2.8	6.9	6.0
Number of full-time employees	1.398	1.373	1.404	1.362

SWECO BELGIUM

SALES AND PROFIT, JULY-SEPTEMBER

Net sales increased to SEK 326 million (240), and organic growth was 29 per cent after adjustment for calendar effects. Organic growth was primarily driven by increased revenue from subconsultants, an increased number of employees and higher average fees. Acquired growth contributed 3 per cent and related to the acquisitions of Planet Engineering and Nexilis. The year-on-year calendar effect of 8 more hours had a positive impact of approximately SEK 3 million on net sales and EBITA.

The strong performance in Belgium improved further, with a tailwind from an accommodating market. EBITA increased approximately SEK22 million after adjustment for calendar effects. The improvement in earnings was mainly attributable to higher average fees and an increased number of employees. The acquisitions of Planet Engineering and Nexilis also contributed positively.

The market is good within all market segments and the public sector building markets are strong. The residential market is stable as is the office market and public infrastructure markets are strong. Belgium is in the middle of a complete energy transition in the transportation in the transportation, building and industry sectors as well as transforming energy production. The electrification in industry and public domain is increasing.

IN BRIEF
Net sales and profit	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018
Net sales. SEK M	326	240	1.012	801
Organic growth, %	30	5	20	12
Acquisition-related growth, %	3	C	3	11
Currency, %	2	0	3
EBITA. SEK M	38	12	117	62
EBITA margin, %	11.6	5.1	11.6	7.8
Number of full-time employees	872	770	846	774

SWECO UK

SALES AND PROFIT, JULY-SEPTEMBER

Net sales increased to SEK 317 million (212). Organic growth after adjustment for calendar effects was approximately -5 per cent. The acquisition of MLM Group contributed acquired growth of 52 per cent. The year-on-year calendar effect of 8 more hours had a positive impact of approximately SEK 2 million on net sales and EBITA.

EBITA increased to SEK 15 million (6). Performance in the UK was weak primarily due to a low billing ratio. The decline was driven by project delays in the public infrastructure sector and a temporary tender cycle decline in the water sector. The acquisition of MLM Group, which was consolidated into Sweco UK as of May, contributed positively.

In general, the market for Sweco's services in the UK is satisfactory with a slow down due to uncertainty connected to Brexit. Demand in the infrastructure and energy schemes, especially where investment is regulated or government led, continues to be impacted by delays and postponements. The water market continues to be impacted by the public tender cycle. However, there is a more positive outlook for the transportation and environment market. The London commercial building market is good despite Brexit-related uncertainty.

IN BRIEF

Net sales and profit	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018
Net sales. SEK M	317	212	822	650
Organic growth, %	-4		-6	18
Acquisition-related growth, %	52		29	0
Currency, %			3	5
EBITA. SEK M	15	1	27	23
EBITA margin, %	4.8	28	3.3	3.6
Number of full-time employees	1.257	871	1.088	856

SWECO GERMANY & CENTRAL EUROPE

SALES AND PROFIT, JULY-SEPTEMBER

Net sales increased to SEK 502 million (397). Organic growth was approximately 8 per cent after calendar effects. Organic growth was primarily driven by an increased number of employees. Acquired growth amounted to 14 per cent and primarily related to the acquisition of Imp GmbH which was consolidated into Sweco Germany & Central Europe as of July. The year-year calendar effect of 10 more hours had a positive impact of approximately SEK 6 million on net sales and EBITA.

EBITA decreased approximately SEK 4 million after adjustment for calendar effects mainly due to negative project adjustments in Poland. The operations in Germany were affected by a lower billing ratio and negative project adjustments while the acquisition of Imp GmbH contributed positively.

The German market is good overall and is developing positively. The construction market for healthcare facilities and the commercial buildings markets are good. Demand is strong in the transport and environmental sector due to public investment, and power transmission continues to be a good market, while power generation remains challenging.

The Lithuanian market has stabilised, and the Czech market is doveloping positively with increasing investments in transportation and water.

IN BRIEF
Net sales and profit	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018
Net sales. SEK M	502	397	1.336	1.136
Organic growth, %	Q	12	8	12
Acquisition-related growth, %	14	2	0	1
Currency, %	3	10	3
EBITA. SEK M	26	24	56	68
EBITA margin, %	5.2	6.1	4.2	6.0
Number of full-time employees	2.331	1.848	2.092	1.790

SWECO Z

OTHER INFORMATION

PARENT COMPANY, JANUARY-SEPTEMBER 2019

Parent Company net sales totalled SEK 569 million (525) and were attributable to intra-group services. Profit after net financial items totalled SEK 222 million (204). Investments in equipment totalled SEK 27 million (33). Cash and cash equivalents at the end of the period totalled SEK 95 million (222).

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 interim 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.

From 1 January 2019, Sweco is applying one new IFRS standard: IFRS 16, Leases. The accounting principles for this standard are described in Note 1 of the Annual Report for 2018 on page 57. In all other respects, the Group applies the same accounting and valuation principles as those described in Note 1 in the Annual Report for 2018.

In this interim 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 1-18; the interim financial information presented on pages 1-18 is therefore part of this financial report.

NEW ACCOUNTING PRINCIPLES FOR 2019

Sweco is applying IFRS 16 Leases, the new standard for lease accounting, as of 1 January 2019. Under IFRS 16 essentially all leases are recognised in the balance sheet, since finance leases and operating leases are no longer treated differently, as was the case under the previous standard IAS 17. Sweco has chosen the full retrospective transition method and has accordingly accounted for all lease contracts as if IFRS 16 had always been applied. The comparative figures for 2018 have been restated.

Sweco will not be applying IFRS 16 at the Business Area level. Segment reporting for 2019 will therefore remain unchanged from 2018. Additional information regarding Sweco's application of IFRS 16 can be found in the Annual report for 2018 on pages 56-57 and in the press, release dated 12 April 2019.

The consolidated financial statements for 2018, including the opening balance on 1 January 2018, have been restated for IFRS 16. To facilitate the analysis of financial development, Sweco has adjusted the presentation of the financial statements by adding new line items.

In the income statement, as presented in the interim reports, the financial net has been divided into three items to facilitate the analysis of lease liabilities and other interest-bearing liabilities.

· Net financial items: Comprises interest expenses on credit facilities and other costs related to credit facilities less interest income on cash and cash equivalents and short-term investments.

•Interest cost of leasing: Comprises the interest cost of leasing pursuant to IFRS 16.

•Other financial items: Result and distributions from participations in associated companies and other securities, result from the 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.

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: http://www.sweco.se/en/IR/definitions/

The adoption of IFRS 16 has a significant impact on the presentation of financial statements. There will be a significant increase in both assets and liabilities and a decrease in other expenses, and a corresponding increase in depreciation and interest expenses. Sweco has chosen to maintain its key financial metrics close to previous definitions, producing minor differences to previously presented values. The objective is to facilitate comparability with previous periods and provide transparency regarding Sweco's operational performance and the Group's financial strength, apart from the accounting effects of IFRS 16. Under this approach, Sweco's targets for profitability (EBITA margin of 12 per cent) and financial strength (a Net debt/EBITDA ratio of less than 2.0 x) also remain unchanged.

Sweco's 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 net 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.

The reconciliation of Sweco's key financial metrics, described above, and IFRS measures is presented on page 12. Organic growth calculation is presented on page 17.

THE SWECO SHARE

The Sweco share is listed on Nasdaq Stockholm. The share price of the Sweco Class B share was SEK 279,60 at the end of the period, representing a 10 per cent increase during the quarter. The Nasdaq Stockholm General Index increased 2 per cent over the same period.

The total number of shares at the end of the period was 121,083,819: 10,420,274 Class A shares and 110,663,545 Class B shares. The total number of shares outstanding was 117,798,459: 10,420,274 Class A shares and 107,378,185 Class B shares.

RISKS AND IINCERTAINTIES

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 and the effects of political decisions. The Group is also exposed to various types of financial risk, such as foreign currency, interest rate and credit risk. No significant risks are deemed to have arisen apart from the risks detailed in Sweco's 2018 Annual Report (page 102, Risks and Risk Management).

ANNUAL GENERAL MEETING

The 2020 annual general meeting will be held on Thursday, 23 April 2020 at 3:00 PM at Fotografiska, Stadsgårdshamnen 22, Stockholm. Sweco's 2019 Annual 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.

CALENDAR FEFFECTS

Current year

The number of normal working hours in 2019, based on the 12-month sales- weighted business mix as of September 2018, is broken down as follows:

	2019	2018
Quarter 1:	496	490	+6
Quarter 2:	462	474	-12
Quarter 3:	519	511	+8
Quarter 4:	485	489	-4
Total:	1,962	1.964	-2

Year 2020

The number of normal working hours in 2020, based on the 12-month sales-weighted business mix as of September 2019, is broken down as follows:

	2020	2019
Quarter 1:	500	496	+4
Quarter 2:	465	462	+ 3
Quarter 3:	518	519	-1
Quarter 4:	491	485	+6
Total:	1.974	1.962	+12

ACQUISITION-RELATED AMORTISATION Acquisition-related intangible assets and expensed cost

for future services will be amortised pursuant to the following schedule, based on acquisitions to date:

2019 Estimate	SEK -127 million
2020 Estimate	SFK -111 million
2021 Estimate	SFK -95 million
2022 Estimate	SFK -59 million

FORTHCOMING FINANCIAL INFORMATION Year-end report 2019 12 February 2020 Interim report January-March 15 May 2020 Interim report January-June 16 July 2020 Interim report January-September 4 November 2020

Stockholm, 25 October 2019

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

FOR FURTHER INFORMATION, PLEASE CONTACT: Asa Bergman, President and CEO asa.bergman@sweco.se

Olof Stålnacke, CFO

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

Katarina Grönwall, CCO

Phone +46 73 258 93 33 katarina.gronwall@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

AUDITOR'S REPORT

This is the Auditor's review report on interim financial information, prepared in accordance with IAS 34 and Chapter 9 of the Swedish Annual Accounts Act.

INTRODUCTION

We have reviewed the condensed interim financial information (interim report) of Sweco AB as of 30 September 2019 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

SCOPE OF REVIEW

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, 25 October 2019 PricewaterhouseCoopers AB

Michael Bengtsson Auditor-in-charge Authorised public accountant Aleksander Lyckow Authorised public accountant

KEY RATIOS

					Oct 2018-
Key ratios1)	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018	Sep 2019	Full-year 2018
Profitability
EBITA margin, %	8.3	ર્ભ રે	8.9	8.3	9.1	8.7
Operating margin (EBIT), %	7.8	6.4	8.7	8.3	8.9	8.6
Profit margin, %	7.2	5.4	8.1	7.6	8.4	8.1
Revenue growth2)
Organic growth, %	8	4		4
	4	3	5 3	3		5 ১
Acquisition-related growth, %	1	5	2	3		3
Currency, % Total growth, %	13	12	10	11		11
Debt
Net debt, SEK M			2,511	2,650		1,849
Interest-bearing debt, SEK M			3.059	3,008		2,624
Financial strength
Net debt/Equity, %			37.1	44.0		30.0
Net debt/EBITDA, x			1.2	1.4		1.0
Equity/Assets ratio, %			36.3	33.3		35.5
Available cash and cash equivalents, SEK M			2.377	995		1.749
-of which unutilised credit, SEK M			1,829	637		974
Return
Return on equity, %			21.6	22.3		20.9
Return on capital employed, %			14.5	15.7		14.6
Share data
Earnings per share, SEK	2.12	1.43	7.84	6.71	11.74	10.59
Diluted earnings per share, SEK	2.06	1.40	7.61	6.57	11.40	10.35
Equity per share, SEK3)			57.34	50.78		52.60
Diluted equity per share, SEK3)			55.83	49.66		50.91
Number of outstanding shares at reporting date			117,798,459	118,305,118		117,069,942
Number of repurchased Class B shares			3,285,360	2,778,701		4,013,877

1) Key ratio definitions are available on Sweco's website.

• Roy ratio dominions are arakasto on Sweco's calculation of revenue growth.
  3) See page 17 for details on Sweco's calculation of revenue growth.
  3) Refers to portion attri

Reconciliation of EBIT and the APMs EBITA and					Oct 2018-
EBITDA. SEK M	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018	Sep 2019	Full-year 2018
Operating profit (EBIT)	361	260	1.296	1.126	1,787	1,618
Acquisition-related items	43	20	99	57	116	75
Lease expenses1)	-184	-171	-540	-497	-709	-665
Depreciation and impairments, right-of-use assets	ت ريون	154	483	449	635	602
EBITA2)	384	263	1,337	1.135	1,830	1,629
Amortisation/depreciation and impairment, tangible
and intangible fixed assets	77	62	218	184	286	252
EBITDA3)	461	326	1.555	1.320	2.116	1,881

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

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

berting could the course of the case of the station and the est, Taxes, Depreciation & anortisation and Aquisition and Aquisition-related items, under in which all leases are treated as operating leases and the total cost of the lease affects EBITDA.

Net debt. SEK M1)	30 Sep 2019	30 Sep 2018	31 Dec 2018	1 Jan 2018
Non-current interest-bearing debt	2.123	2.140	2.105	2.120
Current interest-bearing debt	936	868	519	ર્ રે
Cash and cash equivalents incl.
short-term investments	-548	-358	-775	-572
NET DEBT	2,511	2.650	1.849	1.604

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

sweco द

CONSOLIDATED INCOME STATEMENT AND COMPREHENSIVE INCOME STATEMENT

Income Statement					Oct 2018-
SEK M	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018	Sep 2019	Full-year 2018
Net sales	4.623	4,078	14.938	13.623	20.049	18,735
Other income	8	5	15	12	17	14
Other external expenses	-1,030	-928	-3,142	-2,969	-4,285	-4,112
Personnel expenses	-2,956	-2,659	-9,716	-8.849	-12,957	-12,091
Amortisation/depreciation and impairment, tangible and intangible fixed assets1)	-77	-62	-218	-184	-286	-252
Depreciation and impairment, right-of-use assets	-165	-154	-483	-449	-635	-602
Acquisition-related items2)	-43	-20	-99	-57	-116	-75
Operating profit (EBIT)	361	260	1,296	1,126	1,787	1,618
Net financial items3)	-10	-13	-35	-32	-47	-45
Interest cost of leasing")	-17	-15	-49	-46	-64	-61
Other financial items5)	-3	-13	-5	-6	0	-1
Profit before tax	331	219	1,207	1.042	1,676	1,511
Income tax	-81	-50	-286	-245	-296	-255
PROFIT FOR THE PERIOD	249	169	921	797	1,380	1,256
Attributable to:
Parent Company shareholders	249	169	921	796	1.379	1,254
Non-controlling interests	0	0	0	1
Earnings per share attributable to Parent Company shareholders, SEK	2.12	1.43	7.84	6.71	11.74	10.59
Average number of shares Dividend ner share. SFK	117.798.459	118.374.481	117.494.870	118.654.377	117.538.393	118.408.024 5.50

1) Includes tangible assets and intangible assets that are not acquisition-related. 2 Acquisition-related items consist of and impairment of goodwill and acquisition-related intangible asses, revaluation of purchase price, profit and losses on the divestment of companies, operations, land and buildings, as well as expensed cost for future service. See page 15 for additional details.

bet the are comprise interest expenses on credit facilities and costs relations 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 distribution in associated companies and other securities, result from sale of participations in associated companies and other securities, foreign exchange gains and liabilities, and other interest income and interest expenses.

Consolidated income statement and other comprehensive income, SEK M	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018	Oct 2018- Sep 2019	Full-year 2018
Profit for the period	249	169	921	797	1,380	1,256
Items that will not be reversed in the in- come statement
Revaluation of defined benefit pensions, net after tax1.2)	2	0	2	0	-9	-11
ltems that may subsequently be reversed in the income statement
Translation differences, net after tax	63	-39	225	176	136	87
COMPREHENSIVE INCOME FOR THE PERIOD	314	130	1,147	973	1,507	1,332
Attributable to:
Parent Company shareholders	313	130	1.147	971	1,506	1,330
Non-controlling interests	1	0	1	2		2
1) Tax on revaluation of defined benefit pensions	0	-	0		1	2

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

STATEMENTS OF CONSOLIDATED CASH FLOW, CONSOLIDATED BALANCE SHEET AND CHANGES IN EQUITY

Cash flow statement					Oct 2018-
SEK M	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018	Sep 2019	Full-year 2018
Profit before tax	331	219	1,207	1,042	1,676	1,511
Amortisation/depreciation and impairment	270	236	768	692	1.006	030
Other non-cash items	୧୫	50	185	167	211	194
Cash flow from operating activities before	669	200	2,160	1.902	2.894	2,635
changes in working capital, tax paid, inter- est paid and received
Interest cost leasing	-17	-15	-49	-46	-64	-62
Net interest paid	-10	-7	-27	-24	-35	-32
Tax paid	-94	-63	-368	-260	-438	-329
Changes in working capital	-331	-227	-471	-736	104	-161
Cash flow from operating activities	216	192	1,245	835	2,461	2,051
Acquisition and divestment of subsidiaries
and operations	-132	0	-441	-234	-463	-257
Purchase and disposal of intangible and
tangible assets	-61	-109	-194	-239	-261	-307
Other investing activities	-J	-2	0	0	-5	-5
Cash flow from investing activities	-194	-112	-635	-474	-729	-569
Borrowings and repayment of borrowings	267	83	319	753	-14	420
Principal elements of lease payments	-164	-153	-477	-447	-608	-579
Dividends paid	0		-645	-593	-645	-593
Repurchase of treasury shares		-33	-2	-283	-239	-520
Cash flow from financing activities	102	-102	-804	-569	-1,506	-1,271
CASH FLOW FOR THE PERIOD	125	-21	-193	-208	225	211

Balance sheet
SEK M	30 Sep 2019	30 Sep 2018	31 Dec 2018	1 Jan 2018
Goodwill	7,227	6,685	6,615	6,278
Other intangible assets	333	314	300	375
Property, plant and equipment	629	588	580	524
Right-of-use assets	2.987	2.672	2.724	2,585
Financial assets	477	418	502	422
Current assets excl. cash and cash equivalents	6,437	7.029	5.901	6,116
Cash and cash equivalents incl. short-term investments	548	358	775	572
TOTAL ASSETS	18,638	18,065	17,397	16,812
Equity attributable to Parent Company shareholders	6,754	6.007	6,158	5,823
Non-controlling interests	10	9	10	12
Total equity	6,764	6.017	6.168	5,835
Non-current leasing liabilities	2,492	2,231	2,314	2,176
Non-current interest-bearing debt	2.123	2.140	2.105	2.120
Other non-current liabilities	1.022	886	923	811
Current leasing liabilities	664	614	599	579
Current interest-bearing debt	936	868	519	ર્દ્ર રે
Other current liabilities	4,636	5,308	4,770	5,234
TOTAL EQUITY AND LIABILITIES	18,638	18,065	17,397	16,812
Pledged assets	20	21	20	21
Contingent liabilities	875	731	791	711

Changes in equity		Jan-Sep 2019		Jan-Sep 2018
SEK M	Equity attribut- able to Parent Company shareholders	Non- controlling interests	Total equity	Equity attribut- able to Parent Company shareholders	Non- controlling interests	Total equity
Equity, opening balance	6.158	10	6,168	5.967	12	5,979
Change in accounting principle				-144	-	-144
Comprehensive income for the period	1.147	1	1.147	971	2	973
Transfer to shareholders	-644	0	-645	-593	-1	-594
Buy-back of treasury shares	-2	-	-2	-283		-283
Divestment of non-controlling interests					-3	-3
Share-based incentive schemes	93	-	93	84	-	84
Share savings schemes	3		3	4		4
EQUITY, CLOSING BALANCE	6,754	10	6,764	6.007	9	6.017

ACQUISITIONS, ACQUISITION-RELATED ITEMS AND FAIR VALUE OF FINANCIAL INSTRUMENTS

ACQUISITION OF SUBSIDIARIES AND OPERATIONS

During the period Sweco acquired Linnunmaa Oy, MLM Holdings Limited, Tovatt Architects & Planners AB, Imp GmbH and JIE engineering d.o.o. The acquired businesses have approximately 907 employees (individuals). Of the consideration paid, SEK 151 million is classified in accordance with IFRS as the cost for future service of staff. The cost for future service is thus accounted for as a prepaid asset and will be expensed over the line Acquisition-related items. Since the amount is prepaid, it impacts the operating cash flow on the line Changes in working capital. The purchase consideration, excluding cost for future service, totalled SEK 525 million and had a negative impact on cash and cash equivalents of SEK 459 million. The acquisitions impacted the consolidated balance sheet as detailed in the table below. The acquisition analyses regarding Linnunmaa, MLM, Tovatt and Imp are preliminary. During the acquired companies contributed SEK 258 million in net sales, SEK 24 million in EBITA and SEK -26 million in operating profit (EBIT). If the companies had been owned as of 1 January 2019 they would have contributed approximately SEK 560 million in net sales, about SEK 42 million EBITA and about SEK -50 million in operating profit (EBIT). The transaction cost for the acquisitions during this period and previous period totalled SEK 12 million.

Acquisitions, SEK M
Intangible assets	462
Property, plant and equipment	47
Right-of-use assets	131
Current assets	301
Non-current liabilities	-1
Deferred tax	-22
Leasing liabilities	-126
Other current liabilities	-266
Total purchase consideration	525
Unsettled purchase price commitment	-52
Payment of deferred purchase price	2
Cash and cash equivalents	-17
DECREASE IN GROUP CASH AND CASH EQUIVALENTS	459

DIVESTMENT OF SUBSIDIARIES

During the period Sweco sold its Swedish subsidiary Sweco Elektronik AB with 23 employees. The business contributed SEK 13 million in net sales and SEK 1 million in operating profit. The divestment had a negative impact on profit of SEK 9 million and a positive impact on the Group's cash and cash equivalents of SEK 18 million. The divestment impacted the consolidated balance sheet as detailed below.

Divestments, SEK M
Intangible assets	15
Property, plant and equipment	0
Current assets	22
Current liabilities	-5
Capital loss recorded on divestment	-Q
Total purchase consideration	22
Cash and cash equivalents in divested companies	-4
INCREASE IN GROUP CASH AND CASH EQUIVALENTS	18

ACQUISITION-RELATED ITEMS

Acquisition-related items SEK M	Jul-Sep 2019	Jul-Sep 2018 Jan-Sep 2019		Jan-Sep 2018	Oct 2018- Sep 2019	Full-year 2018
Amortisation of acquisition-related intangible assets	-29	-20	-68	-59	-85	-77
Revaluation of additional purchase price					-1	-1
Profit/loss on divestment of buildings and land	0
Profit/loss on divestment of companies and operations	-		-9	2	-9	2
Expensed cost for future service	-14	1	-22	1	-22
ACQUISITION-RELATED ITEMS	-43	-20	-99	-57	-116	-75

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Group's financial assets measured at fair value totalled SEK 11 million (13). The derivative instruments are forward currency contracts, the fair value of which is determined based on listed prices for forward currency contracts on the balance sheet date (Level 2). The fair value of unlisted financial assets is determined through market valuation techniques (observable market inputs) such as recent transactions, listed prices of similar instruments and discounted cash flows. In the event no reliable inputs are available for determining fair value, financial assets are reported at acquisition value (Level 3). There were no transfers between levels during the period.

QUARTERLY REVIEW PER BUSINESS AREA

In the table below, 2017 and 2018 segment information has been restated to reflect the adjusted business area structure applicable from 1 January 2019.

Quarterly summary restated for adjusted business area structure4)	2019 03	2019 02	2019 01	2018 04	2018 03	2018 02	2018 01	2017 04	2017 03
Net sales, SEK M
Sweco Sweden	1,519	1,952	1,958	2,003	1,427	1,926	1,874	1,936	1,437
Sweco Norway	550	658	706	661	516	639	577	561	413
Sweco Finland	536	611	579	ર્સ્ટર્	465	549	502	488	420
Sweco Denmark	410	442	455	460	403	469	375	349	290
Sweco Netherlands	488	ويو ويو ويو ويو ويو ويو ويو ويو ويو ويو ويو ويو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو ويورو	500	520	447	492	466	459	389
Sweco Belgium	326	352	335	323	240	271	290	233	200
Sweco UK	317	291	214	207	212	225	213	196	179
Sweco Germany & Central Europe	502	438	397	436	397	387	352	379	322
Group-wide, Eliminations, etc.	-26	-49	-47	-55	-29	-41	-22	-19	-14
TOTAL GROUP	4,623	5,214	5,101	5,112	4,078	4,916	4,628	4,582	3,635
EBITA, SEK M²7
Sweco Sweden	102	233	252	284	83	234	234	296	ઠક
Sweco Norway	55	18	78	60	41	49	29	29	24
Sweco Finland	76	73	74	રેરે	46	63	35	34	43
Sweco Denmark	44	16	રેર	17	27	41	23	5	14
Sweco Netherlands	24	37	43	ਤ ਹ	13	34	38	18	5
Sweco Belgium	38	41	રેક	37	12	24	26	21	11
Sweco UK	15	4	8	-6	6	6	11	11	14
Sweco Germany & Central Europe	26	18	11	27	24	25	19	36	20
Group-wide, Eliminations, etc. 3)	3	-18	-9	-8	11	-11	-7	-2	11
EBITA	384	422	531	494	263	464	408	448	237
EBITA margin, %2)
Sweco Sweden	6.7	11.9	12.9	14.2	5.8	12.1	12.5	15.3	6.6
Sweco Norway	10.0	2.7	11.0	9.0	8.0	7.7	5.0	5.2	5.8
Sweco Finland	14.2	12.0	12.8	9.5	0.9	11.5	7.0	7.0	10.2
Sweco Denmark	10.7	3.6	8.0	3.7	6.7	8.8	6.1	1:5	4.7
Sweco Netherlands	5.0	7.1	8.6	5.9	2.8	6.8	8.1	4.0	1.4
Sweco Belgium	11.6	11.7	11.4	11.5	5.1	8.8	9.0	9.0	5.4
Sweco UK	4.8	1.4	3.7	-3.0	2.8	2.7	5.2	5.7	7.9
Sweco Germany & Central Europe	5.2	4.1	2.9	6.3	6.1	6.4	5.5	9.4	6.2
EBITA margin	8.3	8.1	10.4	9.7	6.5	9.4	8.8	9.8	6.5
Billing ratio, %	73.6	74.8	74.1	74.5	73.7	75.2	74.4	75.8	75.1
Number of normal working hours	جيو	462	496	489	511	474	490	490	211
Number of full-time employees	16463	16 281	15 823	15 665	15 197	15 387	14 081	14774	14 396

4) Sweco is not applying IFRS 16 at the business area EBTA values for 2018 therefor remain unchanged from previous values.

Brice of the beginner of the Brand Beatings before interest, Taxes and Aquisition-related them, under which all leases arerealed as Darring beatlers por minents of more and minest, work many and the many world be more world on the more leases. This

difference between reported and restated Group EBITA is reported in Group-wide, Eliminations, etc.

SWECO Z

PERIOD REVIEW PER BUSINESS AREA

January-September	Net sales, SEK M			EBITA. SEK M²		EBITA margin, %2)		Number of full-time employees
Business Area1)	2019	2018	2019	2018	2019	2018	2019	2018
Sweco Sweden	5.428	5.227	587	550	10.8	10.5	5,825	5,584
Sweco Norway	1.914	1.732	151	119	7.9	6.9	1.549	1.455
Sweco Finland	1.725	1.516	223	144	129	9.5	2.143	2.077
Sweco Denmark	1.307	1.247	96	91	7.4	7.3	1.174	1,184
Sweco Netherlands	1.513	1.406	104	84	6.9	6.0	1.404	1,362
Sweco Belgium	1.012	801	117	62	11.6	7.8	846	774
Sweco UK	822	650	27	23	3.3	3.6	1.088	856
Sweco Germany & Central Europe	1.336	1.136	56	68	4.2	6.0	2.092	1,790
Group-wide, Eliminations, etc. 3)	-121	-93	-24	-8			70	100
TOTAL GROUP	14.938	13,623	1.337	1,135	8.9	8.3	16,191	15,187

4) Sweco is not applying IFRS 16 at the business area EBTA values for 2018 therefor remain unchanged from previous values 2 EBITA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes and treated items, under which all leases are treated as

operating leases and the total or the lease affects EBTA.
\$1 Group-wide, Eliminations and the Dutch real etate operations. Group EBTA for 2018 differs slightly from previousl figures due the change in treatment of leases previously reported as finance between reported and restated Group EBITA is reprted in Groupwide, Eliminations, etc.

NET SALES GROWTH

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

Net sales growth	2019 Jul-Sep	2018 Jul-Sep	Growth, % Jul-Sep 2019	2019 Jan-Sep	2018 Jan-Sep	Growth, % Jan-Sep 2019
Reported net sales	4.623	4.078	13	14.938	13.623	10
Adjustment for currency effects		47			239	2
Net sales, currency-adjusted	4.623	4.125	12	14.938	13,861	8
Adjustment for acquisitions/divestments	-171		4	-272	75	3
Comparable net sales, currency-adjusted	4.452	4.132	8	14.666	13,937	5
Adjustment of calendar effect	-63			-19
Comparable net sales, adjusted for currency and calendar effect	4.389	4.132	0	14.647	13.937	5

Net sales growth	2018 Jul-Sep	2017 Jul-Sep	Growth, % Jul-Sep 2018	2018 Jan-Sep	2017 Jan-Sep	Growth. % Jan-Sep 2018
Reported net sales	4.078	3.635	12	13,623	12,305	11
Adjustment for currency effects		192	5		428
Net sales, currency-adjusted	4.078	3.828		13.623	12.733
Adjustment for acquisitions/divestments	-91	11	3	-234	86
Comparable net sales, currency-adjusted	3.987	3.838		13.389	12.819
Adjustment of calendar effect				40
Comparable net sales, adjusted for currency and calendar effect	3.987	3.838	4	13.429	12.819

sweco 关

PARENT COMPANY INCOME STATEMENT AND BALANCE SHEET

Parent Company income statement, SEK M	Jan-Sep 2019	Jan-Sep 2018	Full-year 2018
Net sales	569	525	703
Operating expenses	-593	-536	-734
Operating loss	-23	-11	-30
Net financial items	245	215	ರಿ45
Profit/loss after net financial items	222	204	915
Appropriations	1		-164
Profit/loss before tax	222	204	751
Tax	-		-110
PROFIT/LOSS AFTER TAX	222	204	640

Parent Company balance sheet, SEK M	30 Sep 2019	31 Dec 2018
Intangible assets	30	40
Property, plant and equipment	60	54
Financial assets	6.316	6.358
Current assets	2.353	2,661
TOTAL ASSETS	8.759	9.113
Equity	4.126	4,448
Untaxed reserves	354	354
Non-current liabilities	1,731	1,703
Current liabilities	2.547	2.608
TOTAL EQUITY AND LIABILITIES	8.759	9.113