Serneke Group

Interim / Quarterly Report • Apr 17, 2019

SERNEKE.

INTERIM REPORT JANUARY-MARCH 2019

A QUARTER WITH A FOCUS ON THE FUTURE

JANUARY-MARCH 2019

• Income amounted to SEK 1,480 million (1,485).
• •
• Profit for the period amounted to SEK 10 million (39)
• Earnings per share after dilution amounted to SEK 0.44 (1.66)
• The equity/assets ratio was 39.9 percent (42.7)
• · Cash flow from operating activities amounted to SEK -262 million (209)
• Order bookings amounted to SEK 1,177 million (1,128)
• The order backlog amounted to SEK 5,973 million (7,671)

	Jan-Mar	Jan-Mar	Apr-Mar Agents, O. Reg.	Jan-Dec
SEK M	2019	2018	2018/2019	2018
Revenue	1,480	1,485	6,511	6,516
Operating Result	18	52	561	ട്
Operating margin, %	1.2	3.5	8.6	9.1
Earnings for the period	10	39	575	604
Earnings per share, SEK, before dilution	0.45	1.68	25.33	26.37
Earnings per share , SEK after dilution	0.44	1.66	25.13	26.16
Equity per share , SEK after dilution	99.81	79.39	99.81	100.47
Equity/assets ratio, %	39.9	42.7	39.9	40.9
Net debt	1,057	58	1,057	552
Net debt/EBITDA	1.7	0.1	1.7	0.9
Net debt/equity ratio, %	46.8	3.1	46.8	24.3
Order intakes	1,177	1,128	4.141	4,692
Order backlog	5,973	7,671	5,973	6,382

CEO STATEMENT

The beginning of 2019 was characterized by a continued slowdown in the market in terms of housing construction. Despite a growing population and extensive housing shortage in our growth regions, the number of homes entering construction is decreasing according to forecasts. I believe that this development is basically positive since we now can go from an uncontrolled price increase to a situation with more normal levels and a healthier competition for staff and subcontractors.

Despite a slowdown in the housing segment we see an underlying need for housing, necessary investments in infrastructure, as well as an extensive demand for public service properties and commercial premises. Add to this relatively strong public finances and an order book that remains strong in our company. This means that we feel confident about the future, all things considered.

The order bookings in the first quarter amounted to SEK 1,177 million, a small increase compared with the same period the year before (1,128), which shows that we can compensate for the decline in the housing segment through a strong offering in our business areas. We are continuing our focus on large projects in collaboration with the client – agreements that enable better projects, but are reflected in the order book by a delay. During the quarter, we among other things signed a collaborative agreement in Arvika in our newly established Region Central and began an initial construction contract in our long collaboration on the development of the Swedish Exhibition & Congress Centre in Gothenburg.

The Group's revenues amounted to SEK 1,480 million (1,485) in the first quarter of the year and our operating profit ended up at SEK 18 million.

In Business Area Construction, where growth amounted to 6 percent in the quarter and the operating margin was nearly 2 percent, the declining economy was the main explanation of the lower figures. A wait-and-see attitude in the market has meant that some large projects have not gotten started as planned.

Business Area Civil Engineering, which has been marked by strong growth for some time, increased in the first quarter of 2019 by 12 percent. New initiatives in the organization to

meet society's major upcoming investments in infrastructure have negatively impacted earnings.

Within Project Development, both earnings and operating profit were impacted by changed accounting policies regarding housing development through tenant-owners' associations and unrealized transactions during the quarter. Here, the on-going work on optimization and restructuring of the Karlastaden project was in focus during the quarter.

For Business Area Property Management, the divestment of the Säve property meant that a large asset that generated income has disappeared and thereby impacted sales.

For the continuation of 2019, we will focus on profitability, cost control and utilizing the synergies between our business areas that give us the possibility to work in the entire value chain in construction and property development. The work of optimizing the Karlastaden project and moving on with an implementation will be another focus area. We also continue our long-term work to set a clear strategy and direction ahead. An important part of this will of course be continuing to develop our offering to our current and future employees. For the next generation of builders, the trend towards greater diversity and sustainability is a clear direction in society in general. There, as a company, we have to strive to lead the way to create condition for our own sustainable growth and a better society.

Ola Serneke. President and CEO

GROUP DEVELOPMENT

ORDER BOOKINGS AND ORDER BACKLOG

Order bookings in the first quarter amounted to SEK 1,177 million (1,128), an increase of 4 percent compared with the corresponding quarter of the preceding year. The order bookings for the period are mainly attributable to Construction, which was allocated several assignments in housing and public buildings.

The market is deemed to continue to be stable and there is an underlying need for both housing and public buildings, although the Group is perceiving a slowdown in some segments. Stockholm, Gothenburg and Malmö and their environs continue to be the Group's most important markets, even though the Group is expanding geographically to regional growth regions. The Group is working with the strategy to increase the number of collaborative agreements. These agreements are only included in order bookings when the project planning stage has been passed and the project shifts to

the production phase. A few new collaboration agreements were signed in the quarter. In addition, the Group was allocated preliminary land allocations, statements of intent and collaboration agreements with the ambition of developing these construction projects in the future.

The Group's order backlog at the end of the first quarter amounted to SEK 5,973 million (7,671). At the beginning of 2019, the Group changed an accounting policy that means that our tenant-owner apartment projects are now consolidated, which means that the order backlog from these projects had been removed. It has had a negative impact on the order backlog in an amount of SEK 407 million.

Order bookings		Jan-Mar	Jan-Mar	Apr-Mar	Jan-Dec
SEK M		2019	2018	2018	2018
Construction		1,096	927	4,240	4,071
Civil Engineering		81	201	501	621
Group		1,177	1,128	4,741	4,692
Order backlog	Mar 31	Mar 31	Dec 31
SEK M	2019	2018	2018
Construction	5,790	7,316	6,190
Civil Engineering	183	355	192
Group	5,973	7,671	6,382

Order backlog (Mkr)

NEW ASSIGNMENTS IN THE PERIOD JANUARY-MARCH 2019

Listed below are the Group's new assignments for more than SEK 100 million:

Task	Place:	Order value (SEK million)	Anticipated start of construction
Tenant-owned housing	Solna	280	First quarter 2019
Housing/business premises	Gothenburg	315	Fourth quarter 2019

INCOME AND PROFIT

The operations of the Group are organized into four business areas: Construction, Civil Engineering, Project Development and Property Management.

	Jan-Mar	Jan-Mar	Apr-Mar Agents, O. Reg.	Jan-Dec
SEK M	2019	2018	2018/2019	2018
Revenue	1,480	1,485	6,511	6,516
Operating Result	18	52	561	595
Net financial items	-10	-3	-44	-37
Earnings after financial items	8	49	517	558
Taxation	2	-10	58	46
Earnings for the period	10	39	575	604

JANUARY-MARCH 2019

Consolidated income amounted to SEK 1,480 million (1,485), a decrease of less than 1 percent compared with the corresponding quarter in the preceding year. Mainly two factors had a negative impact on sales. The repurchase of the remaining shares in the Karlastaden project means that income for this project is now fully eliminated and that the Group changed an accounting policy in Project Development where revenue is recognized in the tenant-owner apartment projects in connection with completion of the units. These two factors have not been fully compensated by other growth in the Group. In the quarter, Construction and Civil Engineering increased their income while PD and Property Development had negative growth.

Operating profit decreased during the quarter, and amounted to SEK 18 million (52). Construction generated a profit of SEK 26 million (35), Civil Engineering generated a break-even, while the other

business areas had losses for the period. The previous year's profit included a positive non-recurring effect of SEK 20 million attributable to a dispute with a favorable outcome for Serneke, which was recognized in consolidated profit.

Net financial items amounted to an expense of SEK 10 million (3), mainly related to higher costs for non-current interest-bearing liabilities.

The Group reported an estimated tax income of SEK 2 million (expense: 10). The positive tax effect is attributable partly to the Group not having taxable income and a change in deferred tax related to tax loss carryforwards.

Profit for the period amounted to SEK 10 million (39) and earnings per share after dilution for the quarter were SEK 0.44 (1.66).

Serneke signed an agreement with Frantiden Byggutveckling AB on the construction of 125 apartments, offices and an elderly home around the square Selma Lageriöfs Torg in Gotherburg, Sweden. The order is valued at approximately SEK 315 million. The agreement also includes an option for another phase of 101 apartments worth approximately SEK 168 million.

THE GROUP'S GROWTH AND PROFITABILITY TARGETS

Serneke's long-term growth target is to reach income of SEK 10 billion by 2020, primarily through organic growth supplemented with selective acquisitions.

The Group's long-term profitability target is an operating margin amounting to 8 percent.

Operating profit rolling 12

INCOME

	Jan-Mar	Jan-Mar	Apr-Mar Agents, O. Reg.	Jan-Dec
SEK M	2019	2018	2018/2019	2018
Construction	1,339	1,260	5,609	5,530
Civil Engineering	200	179	887	866
Project Development	11	62	253	304
Property Management	18	21	104	107
Eliminations and Group-wide	-88	-37	-342	-291
Total	1,480	1,485	6,511	6,516

OPERATING PROFIT

	Jan-Mar	Jan-Mar	Apr-Mar	Jan-Dec
SEK M	2019	2018	Agents, O. Reg. 2018/2019	2018
Construction	26	35	81	90
Civil Engineering	0	1	பி	10
Project Development	-8	பி	213	230
Property Management	-1	-10	266	257
Group-wide	1	17	-8	8
Total	18	52	561	595
Net financial items	-10	-3	-44	-37
Earnings after financial items	8	49	517	558

* Group-wide: Other operations are reported under Group-wide – and consist of key companies, Group functions and elimination of intra-Group profit. In the first quarter of 2018, a reversal of SEK 20 million was done with regard to a reservation for a dispute the outcome of which was in the Serneke's favor.

Seasonal variations

To a certain extent, Serneke's operations are subject to seasonal effects. The contracting operations (Business Areas Construction and Civil Engineering) normally experience lower activity in the first quarter of the year

due to fewer production days and, to a greater extent than normal, the weather during the winter months. Earnings are also affected by where public holidays fall, as this affects the number of production days.

FINANCIAL POSITION

	Mar 31	Mar 31	Dec 31
SEK M	2019	2018	2018
Total assets	5,652	4,352	5,555
Total Equity	2.257	1,860	2,272
Net debt	1,057	58	555
Net debt/EBITDA	1.7	0.1	0.9
Liquid assets	210	625	389
Equity/assets ratio, %	39.9	42.7	40.9

The consolidated balance sheet total amounted to SEK 5,652 million (5,555) as at March 31, and the equity/assets ratio was 39.9 percent (40.9). At the end of the period, consolidated cash and cash equivalents, including unutilized credit facilities, amounted to SEK 610 million (789).

On March 31, equity amounted to SEK 2,257 million (2,272). Changes are comprised of profit for the year, which contributed SEK 10 million, at the same time that a changed accounting policy concerning tenant-owner apartment projects had a negative impact of SEK 25.

On March 31, net borrowing amounted to SEK 1,057 million (552). Net borrowing in relation to EBITDA is at 1.7 (0.9) and the change in net borrowing is mainly an increase in interest-bearing liabilities attributable to now consolidated tenant-owner apartment projects and lower cash and cash equivalents. Unutilized committed credit facilities amounted to SEK 400 million (400) at year-end.

GROUP CAPITAL STRUCTURE

One of the Group's financial targets is for the equity/assets ratio to exceed 25 percent.

The liquidity reserve shall amount to at least 5 percent of income in the past 12-month period.

CASH FLOW

	Jan-Mar	Jan-Mar	Apr-Mar Agents, O. Reg.	Jan–Dec
SEK M	2019	2018	2018/2019	2018
Cash flow from current operations	-262	209	-206	265
Cash flow from investment activities	-12	-11	-478	-477
Cash flow from financing activities	95	-4	269	170
Cash flow for the period	-179	194	-415	-42
Cash and cash equivalents at beginning of period	389	431	625	431
Cash and cash equivalents at end of period	210	625	210	389

JANUARY-MARCH 2019

Cash flow from operating activities amounted to SEK -262 million (209). The change is largely attributable to an increased amount of capital being tied up. In the quarter, tenant-owner apartment projects were consolidated, which means that the item project properties negatively impacted working capital by SEK 84 million. Cash flow from investments was negative in the amount of SEK 12 million (11), consisting mainly of investments in tangible fixed assets. Cash flow from financing activities amounted to an inflow of SEK 95 million (outflow: 4) and mainly relates to newly raised construction credits attributable to the consolidated tenant-owner apartment projects. Cash flow for the period amounted to SEK -179 million (194).

EMPLOYEES

The Group had an average 1,134 employees in January-March 2019, compared with 1,022 in the corresponding period last year.

BUSINESS AREA CONSTRUCTION

All of the Group's construction-related operations are conducted within Business Area Construction. The business area performs works for both external customers, as well as with Business Areas Project Development and Property Management.

	Jan-Mar	Jan-Mar	Apr-Mar Agents, O. Reg.	Jan-Dec
SEK M	2019	2018	2018/2019	2018
Revenue	1,339	1,260	5,609	5,530
Operating Result	26	35	81	90
Operating margin, %	1.9	2.8	1.4	1.6
Order intakes	1,096	927	4.240	4,071
Order backlog	5,790	7,316	5,790	6,190
Average number of employees	796	744	774	761

JANUARY-MARCH 2019

Income amounted to SEK 1,339 million (1,260), an increase of 6 percent. During the quarter, there has been a good production rate in existing projects, but growth is somewhat lower than before as an effect of a lower order backlog.

Operating profit amounted to SEK 26 million (35) and the operating margin was 1.9 percent (2.8). The lower margin is due to higher expenses attributable to investments in expansion.

Order bookings amounted to SEK 1,096 million (927), an increase of 18 percent. During the quarter, Construction

received most of the projects mainly in housing production and public buildings. In addition to this, a few collaboration agreements were signed where the order bookings are only included when the project shifts to the production phase. During the quarter, a collaboration agreement transitioned to the production phase, which is the first step in the development project that the parties are conducting together.

FINANCIAL TARGET

The long-term target in Business Area Construction is an operating margin of 5 percent. The operating margin for the rolling 12 months was 1.4 percent.

Serneke signed a contract with Riksbyggen for the continued construction of the new Kongahia district in Kungälv. The agreement encompasses new construction of 61 apartments and is valued at about SEK 78 million.

BUSINESS AREA CIVIL ENGINEERING

All of the Group's civil engineering and infrastructure-related operations are conducted within Business Area Civil Engineering. The business area operates in local mational and regional infrastructure projects and maintenance services. The business area performs works for both external customers, as well as the Group's other business areas.

SEK M	Jan-Mar 2019	Jan-Mar 2018	Apr-Mar Agents, O. Reg. 2018/2019	Jan-Dec 2018
Revenue	200	179	887	866
Operating Result	0	1	இ	10
Operating margin, %	0.0	0.6	1.0	1.2
Order intakes	81	201	501	621
Order backlog	183	355	183	192
Average number of employees	182	155	179	172

JANUARY-MARCH 2019

Income amounted to SEK 200 million (179), an increase of 12 percent, mainly driven by the Stockholm region. During the quarter, there has been a good production rate in existing projects, but the growth rate is decreasing compared with earlier quarters as an effect of a lower order backlog.

Operating profit amounted to SEK 0 million (1) and the operating margin was 0 percent (0.6). Profit was negatively impacted by the higher expenses attributable to expansion investments made, mainly in the investment in the railway.

Order bookings amounted to SEK 81 million (201) and the order backlog amounted to SEK 183 million (355), a decrease of 48 percent. A high production rate combined with lower order bookings led to the smaller order

backlog. The market outlook is nonetheless deemed to remain good with a satisfactory demand for infrastructure projects. The business area has multiple large and small projects in on-going tender processes and there are many projects to submit tenders on. The business area has invested in new recruitment of railway expertise to compete for the major investments the state will make in the railway.

FINANCIAL TARGET

The long-term target in Business Area Civil Engineering is an operating margin of 5 percent. The operating margin for the rolling 12 months was 1.0 percent.

BUSINESS AREA PROJECT DEVELOPMENT

Business Area Project Development includes Serneke's development of housing and commercial project development is performed through wholly owned projects or in collaboration with third parties and joint ventures.

	Jan-Mar	Jan-Mar	Apr-Mar Agents, O. Reg.	Jan-Dec
SEK M	2019	2018	2018/2019	2018
Revenue	11	62	253	304
Share in profit of associates and joint ventures	-1	-4	-12	-15
Operating Result	-8	த	213	230
Operating margin, %	-72.7	14.5	84.2	75.7
Average number of employees	54	44	57	50

JANUARY-MARCH 2019

Income amounted to SEK 11 million (62). The lower income is mainly attributable to changed accounting policies from 1 January 2019, which have had a negative effect on income in an amount of SEK 41 million and SEK 6 million on operating profit. For further information, see under changed accounting policies below.

During the quarter, two tenant-owner apartment projects were begun of which one is through a joint venture. At the end of the quarter, the business area had a total of five productions under way, comprising a total of 198 homes of which 162 or 82 percent are sold.

The share in the profit of associates and joint ventures amounted to a negative SEK 1 million (4).

Operating profit amounted to SEK -8 million (9).

Project development portfolio

At March 31, 2019, the total book value of the project development portfolio amounted to SEK 2,846 million (300), which is recognized as project and development properties in the balance sheet. Of this, the holding of the Karlastaden project amounted to SEK 2,177 million, which largely explains the increase from the previous year.

Changes in accounting policies

As of 1 January 2019, a new accounting policy is applied for housing development through tenant-owned housing. The new policy means that tenant-owner associations are consolidated in the consolidated financial statements and that income and profit from implemented projects are recognized at the time the individual buyer takes possession of the home and control shifts to the buyer.

The change has not entailed any material impact on the Group's position and performance in previously presented periods, which is why no restatement was made of the comparative figures. The change in policies has entailed an adjustment of net profit before tax in equity of SEK 25 million attributable to the periods 2016-2018. Of this, SEK 8 million is for the 2018 financial year.

The changed accounting policy is in accordance with the decision the Stockholm Nasdaq stock exchange made on 10 December 2018.

FINANCIAL TARGET

Project Development aims for a return on capital employed of 20 percent. On March 31, 2019, the return on capital employed, based on rolling 12-month earnings, amounted to 20.4 percent.

BUSINESS AREA PROPERTY MANAGEMENT

Business Area Property Management manages and develops properties for long-term capital appreciation. Management is conducted of commercial properties. The business area is working to acquire properties with development potential and generate growth by investing, developing, streamlining and rationalizing property management. Investment properties are managed through wholly owned companies or in collaboration with third parties through associates.

	Jan-Mar	Jan-Mar	Apr-Mar Agents, O. Reg.	Jan-Dec
SEK M	2019	2018	2018/2019	2018
Revenue	18	21	104	107
Earnings from Property	-4	-12	-25	-33
Changes in value of properties			281	281
Share in profit of associates and joint ventures	3	2	10	பி
Operating Result	- 1	-10	266	257
Average number of employees	22	16	20	18

JANUARY-MARCH 2019

Income amounted to SEK 18 million (21), a decrease of 14 percent. This is mainly attributable to a smaller property portfolio as a result of sales of investment properties that took place in the fourth quarter of 2018.

Property management earnings amounted to SEK -4 million (-12). In the previous year, property management earnings were charged a non-recurring cost of SEK 4 million.

The share in profit of associated companies amounted to SEK 3 million (2), primarily attributable to property management earnings in the associate Änglagården Holding AB of SEK 2 million.

At March 31, the book value of the investment properties amounted to SEK 214 million (905) and the change is attributable to the sale of investment properties that took place in the fourth quarter of 2018.

FINANCIAL TARGET

Property Management aims for a return on equity of 20 percent. On March 31, 2019, the return on shareholders' equity, based on rolling 12-month earnings, amounted to 57.8 percent.

Änglagården Holding

Business Area Property Management owns 40 percent of Anglagården Holding AB, which, in turn, owns Prioritet Serneke Arena. Other shareholders are Prioritet Finans, which holds 50 percent, and Lommen Holding, which holds 10 percent.

The Group's share of Anglagården Holding AB SEK M	March 31 2019	March 31 2018	Dec 31 2018
Ownership as a percentage	40	40	40
Share in associated companies*	95	85	92
Share in profit	2	2	9
of which:
Earnings from Property	2	2	12
Change in value of property

*) The Group's participation in the associate Änglagården Holding is calculated based on shareholders' equity less the preferential dividend right of SEK 32 million (55) which applies to the other shareholders. The closing value is subsequently reduced by an internal profit of SEK 19 million (19).

Income statement Anglagården Holding AB SEK M	Jan-Mar 2019	Jan-Mar 2018
Revenue	14	15
Profit/loss for the year	6	4

Balance sheet Anglagården Holding AB SEK M	Mar 31 2019	Mar 31 2018	Dec 31 2018
ASSETS
(-) Real estate	790	800	790
Remaining assets	171	193	164
Total assets	961	gg3	954
EQUITY AND LIABILITIES
Own funds	316	314	309
Interest-bearing liabilities	438	473	447
Remaining liabilities	207	206	198
Total equity and liabilities	961	gg3	954

Other investment properties

Within the business area, some smaller properties are managed where rental of warehouses, garages and industrial premises is conducted for municipal activities and private activities via subsidiaries.

Serneke signed an agreement with Wåhlin Fastigheter to construct 100 new apartments and renovate more than 70 existing ones in the Bellona project in Solna, just north of Stockholm. The contract is valued at approximately SEK 280 million.

PARENT COMPANY

The operations of Serneke Group AB (publ) consist mainly of Group Management and Group-wide services.

Income for January-March amounted to SEK 44 million (38) and consisted primarily of intra-group services. Operating profit for the same period amounted to SEK -1 million (37).

The Parent Company is indirectly affected by the risks described in the section Significant risks and uncertainty factors.

RELATED-PARTY TRANSACTIONS

The nature and extent of transactions by related parties can be found in Note 36 of the 2018 Annual Report. Related-party transactions have taken place with property company Adapta AB, Ola Serneke Invest AB, JV Sersund AB and associate Änglagården. Transactions with related parties have been made on market terms.

Transactions with Adapta AB are considered to constitute related-party transactions since the principal owner, Ludwig Mattsson, is a member of the Board of Serneke Group. The transactions consisted mainly of construction income and rental of Serneke's headquarters, and sales amounted to SEK 102 million and purchases to SEK 3 million as at March 31, 2019. Transactions with Ola Serneke Invest AB are considered to be related party transactions, as Ola Serneke is the principal owner, CEO and a member of the Board of Serneke Group AB. The transactions as at March 31, 2019 are mainly comprised of rents and sales and amounted to SEK 1 million.

Transactions with JV Sersund AB are comprised of contracting income of SEK 4 million. Transactions with associate Änglagården consist mainly of contracted personnel, premises rental and rental of the venue name and, at March 31, 2019, this income amounted to SEK 1 million and purchases to SEK 4 million.

SIGNIFICANT RISKS AND UNCERTAINTIES

Serneke's operations entail several types of risks, both operational and financial. Operational risks are related to the daily operations and can apply to tenders or project development, assessment of profits, risks linked to production or the price trend. Operational risks are managed by the internal business management that has been developed within the Group. Identifying and managing Serneke's risks is crucial to the Group's profitability. Each business area manages its risks based on the business management and developed procedures and processes. Serneke's financial risks such as interest rate, liquidity, financing and credit risks are managed centrally in order to minimize and control risk exposure.

For further information on risks, as well as critical estimates and assessments, see the Board of Directors' Report and Notes 3 and 4 in the 2018 Annual Report. The descriptions in the Annual Report remain relevant. The Annual Report is published at www.serneke.group.

OTHER SIGNIFICANT EVENTS DURING THE REPORT PERIOD

There were no other significant events to report during the quarter.

THE SERNEKE SHARE (SRNKE)

Serneke Group AB has two share series A and B. On March 31, 2019, Serneke had approximately 6,900 shareholders and the closing price on March 31, 2019 was SEK 59.7.

Serneke's ten largest shareholders, March 31, 2019

	Shares of	Shares of	Tot	Percentage outstanding	Percentage votes,
'Name	Series A	Series B	number of shares	shares, %	96
Ola Serneke Invest AB	3,710,000	2,378,954	6,088,954	27.14%	56.95%
Lommen Holding AB	540,000	3,457,803	3,997,803	17.82%	12.78%
Christer Larsson i Trollhättan AB	380,000	497,000	877,000	3.91%	6.20%
Ledge Ing AB	330.000	463.273	793.273	3.54%	5.43%
Vision Group i väst AB	250,000	536,000	786,000	3.50%	4.38%
Svolder Aktiebolag	0	1,253,941	1,253,941	5.59%	1.81%
Cliens fonder	0	855,000	855,000	3.81%	1.23%
Handelsbanken fonder	0	461,919	461.919	2.06%	0.67%
Försäkringsaktiebolaget Avanza Pension	0	274,422	274,422	1.22%	0.40%
Bert-Ake Eriksson	0	271,687	271,687	1.21%	0.39%
Total, 10 largest	5,210,000	10,449,999	15,659,999	69.80%	90.24%
Other shareholders	0	6,773,466	6,773,466	30.20%	9.76%
Total shares outstanding	5,210,000	17,223,465	22,433,465	100.00%	100.00%
Repurchased shares	0	814,987	814,987
Total shares registered	5,210,000	18,038,452	23,248,452

Consolidated financial statements for the years: Euroclear and Serneke

Share series, number of shares and votes, March 31, 2019

	Equity
Share class	securities	Votes
Class A shares	5,210,000	5,210,000
Class B shares	17,223 465	1,722,346.5
Total	22,433 465	6,932,346,5

FINANCIAL CALENDAR

Annual General Meeting 8 May 2019 Interim Report January–June July 17, 2019 Interim Report January-September Year-end report 2019 February 5, 2019

The Board of Directors and the CEO certify that this Interim Report provides a fair overview of the Parent Company and Group's operations, position and performance and describes significant risks and uncertainties facing Serneke.

This report has not been reviewed by the Company's auditors.

Gothenburg, April 17, 2019 Serneke Group AB (publ)

Management Board

Kent Sander D. Tusk

Mari Broman Member

Ludwig Mattsson Member

Ola Serneke Executive Director Anna-Karin Celsing Member

For further information:

Michael Berglin, Deputy CEO E-mail: Michael.berglin@serneke.se Phone:: +46 (0) 31712 97 00

Anders Düring, CFO E-mail: anders.antonsson@serneke.se Phone:: 070 88 87 733

This information is such that Serneke Group AB (publish pursuant to the EU Market Abuse Regulation. The information was submitted for publication on April 17, 2019, at 8:00 a.m.

QUARTERLY DATA AND MULTI-YEAR REVIEW

	Jan- Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan- Mar	Oct-Dec	Jul-Sep	Apr-Jun
SEK M	2019	2018	2018	2018	2018	2017	2017	2017
Revenue
Construction	1,339	1680	1153	1,437	1,260	1511	1113	1,292
Civil Engineering	200	284	213	190	179	208	140	152
Project Development	11	121	32	89	62	53	56	ર્ટિક
Property Management	18	29	30	27	21	18	12	9
Eliminations and Group-
wide	-88	-123	-69	-62	-37	-58	-50	-42
Total	1,480	1,991	1,359	1,681	1,485	1,732	1,271	1,464
Operating Result
Construction	26	54	-41	42	35	56	42	44
Civil Engineering	0	2	5	2	1	4	3	-2
Project Development	-8	237	-10	-6	9	15	3	47
Property Management	-1	222	3	42	-10	182	17	3
Group-wide	1	-6	3	-6	17	-4/	2	3
Total	18	509	-40	74	52	210	67	ರಿ ನ
Operating margin, %	1.2	25.6	-2.9	4.4	3.5	12.1	5.3	6.5
Profit after net financial items	8	501	-50	58	49	206	62	તે 3
Earnings for the period	10	572	-55	48	39	152	51	87
Balance sheet
Assets	1,106	1,094	1,988	1,944	1,725	1,682	1,353	1,274
Current assets	4,546	4,461	2,725	2,798	2,627	2,722	2,615	2,514
Total assets	5,652	5,555	4,723	4,742	4,352	4,404	3,968	3,788
Own funds	2,257	2,272	1,721	1,770	1,860	1,821	1,669	1,621
Non-current liabilities	1,573	1,289	1,317	1,387	972	980	920	738
Current liabilities	1,822	1,994	1,6885	1,585	1,520	1,603	1,379	1,429
Total equity and liabilities	5,652	5,555	4,723	4,742	4,352	4,404	3,968	3,788
Orders
Order intakes	1,177	1,000	1,236	1,328	1,128	1,898	eal	1,742
Order backlog	5,973	6,382	7,303	7,398	7,671	7,965	7,765	8,308
Staffing
Average number of employees	1,134	1,110	1,096	1,051	1022	1,0001	9/0	ala

KEY INDICATORS

IFRS-based key indicators

	Jan-Mar	Jan-Mar	Apr-Mar	Jan-Dec
SEK M	2019	2018	5019	2018
Revenue	1.480	1,485	6,511	6.516
Earnings per share, SEK, before dilution	0.45	1.68	25.33	26.37
Earnings per share , SEK after dilution	0.44	1.66	25.13	26.16
Weighted average number of shares before dilution	22,433,465	23,248,452	22,701,642	22,905,389
Weighted average number of shares after dilution	22,613,468	23,428,455	22,881,645	23,085,392

Other key indicators

	Jan-Mar	Jan-Mar	Apr-Mar	Jan-Dec
SEK M	2019	2018	2019	2018
Operating Result	18	52	561	595
Growth, %	-0.3	30.5	9.4	16.3
Order intakes	1,177	1,128	4,741	4,692
Order backlog	5,973	7,671	5,973	6,382
Organic growth, %	-0.3	30.5	9.4	16.2
Operating margin, %	1.2	3.5	8.6	9.1
Cash flow before financing	-274	198	-212	-212
Cash flow from operations per share, before dilution	-11.68	8.99	-9.07	11.57
Cash flow from operations per share, after dilution	-11.59	8.92	-9.00	11.48
Equity per share, SEK, before dilution	2.769.37	80.01	2,769.37	101.28
Equity per share , SEK after dilution	99.81	79.39	99.81	100.47
Working capital	2,724	1,107	2,724	2,467
Capital employed	3,551	2,553	3,551	3,264
Return on capital employed, %	19.5	21.6	19.5	21.9
Return on equity after taxes, %	27.9	19.4	27.9	29.5
Equity/assets ratio, %	39.9	42.7	39.9	40.9
Net debt	1.057	58	1,057	552
Net debt/equity ratio, %	46.8	3.1	46.8	24.3
Net debt/EBITDA	1.7	0.1	1.7	0.9

SUMMARY FINANCIAL STATEMENTS

SUMMARY OF CONSOLIDATED INCOME STATEMENT

	Jan-Mar	Jan-Mar	Apr-Mar	Jan-Dec
			Agents, O. Reg.
SEK M	2019	2018	2018/2019	2018
Revenue	1,480	1,485	6,511	6,516
Production and administration expenses	-1,420	-1,397	-6,296	-6,273
Gross profit	60	88	215	243
Sales and administration expenses	-45	-31	-148	-134
Change in value of investment properties			281	281
Revaluation of previous holdings in joint ventures	-		229	229
Share in profit of associates and joint ventures	3	-5	-16	-24
Operating Result	18	52	561	595
Net financial items	-10	-3	-44	-37
Earnings after financial items	8	49	517	558
Taxation	2	-10	58	46
Earnings for the period	10	39	575	604
Attributable to:
Parent Company shareholders	10	39	575	607
Non-controlling interests	0	0	0	-3
Earnings per share before dilution, SEK	0.45	1.68	25.33	26.37
Earnings per share after dilution, SEK	0.44	1.66	25.13	26.16
Average number of shares before dilution	22,433,465	23,248,452	22,701,642	22,905,389
Average number of shares after dilution	22,613,468	23,428,455	22,881,645	23,085,392

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Jan-Mar	Jan-Mar	Apr-Mar Agents, O. Reg.	Jan-Dec
SEK M	2019	2018	2018/2019	2018
Earnings for the period	10	39	575	604
Other comprehensive income	0	0	0	0
Total comprehensive income	10	39	575	604

CONDENSED CONSOLIDATED BALANCE SHEET

	Mar 31	Mar 31	Dec 31
SEK M	2019	2018	2018
ASSETS
Assets		23	23
Intangible fixed assets	23	905	213
Managed properties	215 219	97	122
Other tangible fixed assets	128	477	122
Investments in associates/joint ventures	27	10	51
Non-current interest-bearing receivables Other non-current receivables		213	563
	494
Total non-current assets	1,106	1,725	1,094
Current assets
Project and development properties	2,846	300	2,507
Inventories	1	1	1
Trade receivables	923	787	972
Accrued but not invoiced income	379	388	388
Other current receivables	187	526	194
Cash and bank balances	210	625	389
Total current assets	4,546	2,627	4,461
Total assets	5,652	4,352	5,555
Equity and liabilities
Own funds	2,257	1,860	2,272
Non-current liabilities
Non-current interest-bearing liabilities	1,107	643	826
Other non-current liabilities	104	153	83
Deferred tax liability	155	39	157
Other provisions	207	137	223
Total long-term liabilities	1,573	972	1,289
Current liabilities
Current interest-bearing liabilities	187	50	166
Current tax liabilities	6	4	13
Accounts payable	803	/ 16	aal
Invoiced but not accrued income	563	317	532
Other current liabilities	263	373	292
Total current liabilities	1,822	1,520	1,994
Total equity and liabilities	5,652	4,352	5,555

SUMMARY OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY

	Mar 31	Mar 31	Dec 31
SEK M	2019	2018	2018
Equity attributable to Parent Company shareholders
Balance at beginning of period	2,272	1,821	1,821
Dividend			-93
Share repurchases			-65
Share-related compensation	0
Changed accounting policy	-25
Comprehensive income for the period	10	39	607
Non-controlling interests
Acquisition of non-controlling interests	0		4
Comprehensive income for the period	0		-3
Balance at end of period	2,257	1,860	2,272

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

	Jan-Mar	Jan-Mar	Apr-Mar	Jan-Dec
			Agents, O. Reg.
SEK M	2019	2018	2018/2019	2018
Operating activities
Cash flow before change in working capital	-34	36	-77	-7
Change in working capital	-228	173	-129	272
Cash flow from current operations	-262	209	-206	265
Investment activities
Acquisitions of investment properties			-26	-26
Business acquisitions			-592	-592
Sold subsidiaries			222	222
Increase/decrease in investing activities	-12	-11	-82	-81
Cash flow from investment activities	-12	-11	-478	-477
Cash flow before financing	-274	198	-684	-212
Financing activities
Newly raised borrowings	82		773	691
Amortization of liabilities	0	-4	-334	-338
Share repurchases			-65	-65
Dividend			-93	-93
Increase/decrease in financing activities	13	0	-12	-25
Cash flow from financing activities	95	-4	269	170
Cash flow for the period	-179	194	-415	-42
Cash and cash equivalents at beginning of period	389	431	625	431
Cash and cash equivalents at end of period	210	625	210	380

PARENT COMPANY CONDENSED INCOME STATEMENT

	Jan-Mar	Jan-Mar	Apr-Mar Agents, O. Reg.	Jan-Dec
SEK M	2019	2018	2018/2019	2018
Revenue	44	38	149	143
Sales and administration expenses	-45	-1	-157	-113
Operating Result	-1	37	-8	30
Net financial items	-10	-5	-55	-50
Earnings after financial items	-11	32	-63	-20
Year-end appropriations			22	22
Result before taxation	-11	32	-41	2
Taxation	2	-7	-10	-19
Earnings for the period	-9	25	-51	-17

PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME

	Jan-Mar	Jan-Mar	Apr-Mar Agents, O. Reg.	Jan-Dec
SEK M	2019		2018 2018/2019	2018
Earnings for the period	-9	25	-51	-17
Other comprehensive income	0	0	0	0
Total comprehensive income	-9	25	-51	-17

PARENT COMPANY CONDENSED BALANCE SHEET

SEK M	Mar 31 2019	Mar 31 2018	Dec 31 2018
ASSETS
Assets
Tangible fixed assets	13	5	12
Participations in Group companies	201	127	162
Participations in associated companies and joint ventures	10		10
Deferred tax assets	12	22	10
Other non-current receivables	2	5	2
Total non-current assets	238	159	196
Current assets
Project and development properties	3	3	3
Other current receivables	1,632	813	1572
Cash and bank balances	123	525	310
Total current assets	1,758	1,341	1,885
Total assets	1,996	1,500	2,081
Equity and liabilities
Own funds	497	704	505
Non-current liabilities
Non-current interest-bearing liabilities	704	321	702
Total long-term liabilities	704	321	702
Current liabilities
Current interest-bearing liabilities	16	1	16
Accounts payable	14	11	18
Other current liabilities	765	463	840
Total current liabilities	795	475	874
Total equity and liabilities	1,996	1,500	2,081

NOTES

NOTE 1 - Accounting policies

This Interim Report has been prepared in accordance with IAS 34, Interim Financial Reporting. The Interim Report has been prepared in accordance with International Financial Reporting Standards (IFRS), as well as interpretations of current International Financial Reporting Interpretations Committee (IFRIC) standards as adopted by the EU. The Parent Company's reports have been prepared in compliance with the Annual Accounts Act and the Financial Reporting Board's recommendation RFR 2, Accounting for Legal Entities. ESMA's guidelines on alternative key indicators are applied in the report.

The Group has acquired and sold assets through companies with these acquisitions/disposals not being considered to be acquisitions/disposals of operations. IFRS lacks specific guidance for such transactions. The Group has therefore, in adopting an accounting policy that provides a fair picture of these transactions and reflects their implications, sought guidance in other standards addressing similar transactions, in accordance with IAS 8. Against this background, the Group has chosen to apply the relevant parts of the standard for business combinations, IFRS 3, in accounting for acquisitions and sales of assets through companies.

Implementation of new accounting standards

IFRS 16 Leasing

In January 2016, IASB published the new standard IFRS 16 Leases, which was approved by the EU in November 2017 and will be applied from the 2019 financial year. In contrast to the current IAS 17 Leases, the standard means that Serneke as a lessee in operating leases, except for exceptions for small and short leases, must recognize the leases in the Statement of financial position. Serneke applies IFRS 16 Leases as of January 1, 2019 and has accordingly not applied the standard retroactively. The recognized right of use (ROU) assets were assigned the same value as the recognized leasing liabilities as of January 1, 2019. Serneke's assessment is that the transition to IFRS 16 will not have any material impact on the Groups position and performance or cash flow statement. In its capacity as lessee, Serneke conducted a detailed review and analysis of the Group's leases, whereby rental agreements were identified as the single most significant. In addition to rental agreements, a number of smaller leases were identified, such as vehicles, machinery and construction equipment. The effect on the leasing liability as of January 1, 2019 amounted to SEK

103 million where a corresponding ROU asset is recognized.

Bridge from operating leases under IAS 17 to leasing liabilities according to IFRS 16

Commitments for operating leases as at
December 31, 2018	88
Discounting by the Group's weighted average marginal loan interest 2.79%
Plus: liabilities for finance leases as of December 31, 2018	71
Less: leases for which the underlying asset is of a low value that is expensed on a straight-line hasis
Plus: adjustments due to other handling of options to extend or cancel agreements	18
Lease liability as at January 1. 2019

In addition, the Interim Report has been prepared in accordance with the same accounting principles and calculation methods as in the Annual Report for 2018. For detailed information regarding accounting policies, see Serneke's 2018 Annual Report, see www.serneke.se.

NOTE 2 - Financial assets and liabilities at fair value

Financial assets and financial liabilities measured at fair value in the balance sheet are classified according to one of three levels based on the information used to establish the fair value. The Group only holds financial assets and liabilities valued in level 3, which is why levels 1 and 2 have been omitted in the table below. No transfers have been made between the levels during the periods. A more detailed description of the levels can be found in Note 4 of the 2018 Annual Report.

Level 1 - Valuation is made according to prices in active markets for identical instruments.

Level 2 - Financial instruments for which the fair value is established based on valuation models that are based on observable data for the asset or liability other than quoted prices included in Level 1.

Level 3 – Financial instruments for which fair value is established based on valuation models where significant inputs are based on non-observable data.

	Mar 31	Mar 31	Dec 31
Group SEK million	2019	2018	2018
Financial assets
Available-for-sale financial
assets*	2	2	2
Total financial assets	2	2	2
Financial liabilities
Other short- and long-term
liabilities	58	84	58
Of which, additional purchase
considerations**	58	84	58
Total financial liabilities	58	84	58

Note 3 Pledged assets and contingent liabilities

The Group pledges collateral for external loans. The Group's contingent liabilities arise primarily in connection with different property disposals, whereby various operational guarantees may occur, as well as performance guarantees for future contracts. Serneke Group AB (publ) has also entered into a guarantee undertaking, which means that the co-owners in Prioritet Serneke Arena are jointly responsible for the correct fulfillment of interest and repayment of the associate's liabilities to credit institutions in the event that the associate is unable to pay.

Pledged assets and contingent liabilities in the consolidated balance sheet:

	Mar 31	Mar 31	Dec 31
Group	2019	2018	2018
Pledged collateral	2,089	631	1,941
Contingent liabilities	395	557	450
PARENT COMPANY
Pledged collateral	500	200	500
Contingent liabilities	1.254	1.242	1.205

* financial assets at level 3, the market price method has been applied and the yield value assumption has been used.

** In the fair value calculation of the additional purchase considerations at level 3, project estimates, budgets and forecasts have been applied.

For the Group's other financial assets and financial liabilities, the reported values are assessed as corresponding to FAIR VALUE. No significant changes in valuation models, assumptions or inputs were made during the period.

Note 4 - Breakdown of income

Jan-Mar 2019, SEK million	Construction	Civil Engineering	Project Development	Property Management	Eliminations and Group-wide	Total
Construction income	1,337	200	11		-88	1,460
Rental income	0			15		15
Other income	2	0	0	3		5
Total income	1,339	200	11	18	-88	1,480
Date of income recognition:
At a specific time	2		0	3		5
Over time	1,337	200	11	15	-88	1,475
Total income	1,339	200	11	18	-88	1,480
Jan-Mar 2018, SEK million	Construction	Civil Engineering	Project Development	Property Management	Eliminations and Group-wide	Total
Construction income	1,257	179	62		-37	1,461
Rental income	0	-		11		11
Other income	3	0		10		13
Total income	1,260	179	62	21	-37	1,485
Date of income recognition:
At a specific time	3			10		13
Over time	1,257	179	62	11	-37	1,472

Construction income

Income from contracting agreements are reported in accordance with IFRS 15 Revenue from Contracts with Customers, either by fulfilling the performance undertaking over time (that is, gradually) or at one specific time. Construction contracts mean that the construction is performed on the customer's land, where an asset is created over which the customer gains control in pace with the completion of the asset. This entails income being recognized gradually (over time), applying percentage-of-completion. When applying percentageof-completion, the input method applies whereby income is reported based on the degree of completion, The stage of completion is calculated as the relationship between contract expenses incurred for work completed at the end of the reporting period, and estimated total contract expenses. Revaluations of the project's final forecasts entail corrections of previously accumulated earnings. If it is probable that the total contract expenses will exceed the total contract income, the anticipated loss should be immediately recognized as a cost in its entirety. Additional orders and amendments are included in the

income from the assignment to the extent that they are approved by the customer.

Sale of properties and development rights

On disposal of properties or development rights directly or indirectly through a sale of shares, the underlying property or development right's value is recognized in the Group as income. Income from property sales is reported at the time at which the new owner takes possession. When contracts include property sales, development rights and

construction contracting to the buyer of the planned building, an assessment is made regarding whether the property and/or development rights transactions and the construction contract are separate performance undertakings. Depending on the design and terms of the agreement, the sale can be seen as one or several performance undertakings. Sales are reported at the point in time at which control is transferred to the buyer. Control is transferred over time if the seller has no alternative use for the property sold and the seller is entitled to payment from the customer for the work performed. In such cases, income is reported applying percentage of completion. If any of the above criteria are

not met, income is reported at a single point in time, on completion and transfer to the customer.

Sales of development rights can be dependent upon decisions regarding future detailed development plans. An assessment is then made as to the probability of the respective detailed development plan. Sales income and earnings are recognized when the probability is deemed to be very high. When sales income is recognized, all remaining commitments in the sales earnings are also taken into account. Property projects are also on occasion sold with guarantees for a certain degree of leasing and, at the time of sale, any lease guarantees are reported as a reserve in the project, which then has a positive effect on the percentage of completion as leases are signed.

Rental income

Income also includes rental income, which is to be considered as operating leases under IAS 17. Rental income is invoiced in advance and recognized on a straight-line basis in the income statement based on the terms of the lease agreements. Advance rent is reported as prepaid rental income. In cases where the rental contract allows a reduced rent for a certain period of time, which is compensated for by higher rent during another period, this is allocated across the term of the contract.

Other income

Other income refers to income not classified as construction income, sales of properties and

development rights or rental income, including, for example, hotel income or income from central companies.

FINANCIAL DEFINITIONS

Key	Definition:	Object
indicators
Growth	Revenues for the period less revenues for the previous period divided by revenues for the previous period.	In the Company's view, the key indicator allows investors, who so wish, to assess the Company's capacity to increase its earnings.
Organic growth	Revenues for the period, adjusted for acquired growth, less revenues for the previous period, adjusted for acquired growth, divided by revenues for the previous period, adjusted for acquired growth.	In the Company's view, the key indicator allows investors, who so wish, to assess the Company's capacity to increase its income without acquiring operating companies.
	Calculation of organic growth	Jan-Mar 2019	Jan-Mar 2018	Apr-Mar 2019	Jan-Dec 2018
Income current period		1,480	1,485	6,511	6,516
	Income corresponding period previous period	1,485	1,138	5,952	5,605
Income change		-5	347	559	911
	Adjustment for structural effect	0	0	-1	-1
Total organic growth		-5	347	558	910
	Total organic growth (%) -0.3%		30.5%	9.4%	16.2%
Order bookings	The value of new projects and changes in existing projects during the period.	In Serneke's view, the key indicator allows investors, who so wish, to assess the Group's sales by Business Area Construction and Business Area Civil Engineering for the current period.
Order backlog	The value of the Company's undelivered orders at the end of the period excluding cooperation agreements.	In the Company's view, the key indicator allows investors, who so wish, to assess the Company's income through Business Area Construction and Business Area Civil Engineering in future periods.
Operating margin	Operating profit divided by revenues.	In the Company's view, the key indicator allows investors, who so wish, to assess the Company's profitability.
Operating capital	Current assets less current liabilities.	In the Company's view, the key indicator allows investors, who so wish, to assess the Company's tied-up capital in relation to its competitors.
Capital employed	Consolidated total assets less deferred tax assets less non- interest-bearing liabilities including deferred tax liabilities. For the business areas, the net of Group-internal receivables and liabilities is also deducted.		In the Company's view, the key indicator allows investors, who so wish, to assess the total capital placed at the Company's disposal by shareholders and creditors.
	Calculation of capital employed	Mar 31 2019	Mar 31 2018	Dec 31 2018
	Total assets		5,652	4,352	5,555
	Deferred tax assets

Key	Definition:	Object
indicators
	Less non-interest-bearing liabilities including deferred tax liabilities	-2,101	-1,799	-2,291
	Capital employed	3,551	2,553	3,264
ROCE	Profit after net financial items plus financial expenses		In the Company's view, the key indicator
	divided by average capital employed for the period.		allows investors, who so wish, to assess the
	Accumulated interim periods are based on rolling 12-	Company's capacity to generate a return on
	month earnings.		the total capital placed at the Company's
			disposal by shareholders and creditors.
		Mar 31	Mar 31	Dec 31
	Calculation of average capital employed	2019	2018	2018
	March 31, 2019 (3,551) + March 31, 2018 (2,553) / 2	3,052
	March 31, 2018 (2,553) + March 31, 2017 (2,022) / 2		2,288
	31 Dec 2018 (3,264) + 31 Dec 2017 (2,516) / 2			2,890
		Mar 31	Mar 31	Dec 31
	Calculation of return on capital employed	2019	2018	2018
	Profit after net financial items	517	410	558
	Plus financial expenses	78	85	75
	Average capital employed	3,052	2,288	2,890
	ROCE	19.5%	21.6%	21.9%
Equity per	l otal equity according to the balance sheet divided	The Company believes that key indicators give
share,	by the number of shares outstanding on the closing	investors a better understanding of historical return
before/afte	date. The difference between before and after dilution is accounted for by the convertibles issued	per share at the closing date.
r dilution	by the Group.
Cash flow	Cash flow from operating activities divided by the	It is the Company's view that the key indicator gives
from	average number of shares for the period. The	investors a better understanding of the operations'
operations	difference between before and after dilution is accounted for by the convertibles issued by the	cash flow in relation to the number of shares, adjusted for changes in the number of shares during the period.
per share,	Group.
before/afte
r dilution
Earnings	Profit/loss for the period divided by the average	It is the Company's view that the key indicator gives
per share,	number of shares outstanding during the period. The difference between before and after dilution is	investors a better understanding of profit per share.
before/afte	accounted for by the convertibles issued by the
r dilution	Group.

Key indicators	Definition: Object
ROE margin (ratio)	Profit for the period as a percentage			In the Company's view, the key indicator allows investors,
	of average shareholders' equity.		who so wish, to assess the Company's capacity to
	Accumulated interim periods are				generate a return on the capital shareholders have placed
	based on rolling 12-month earnings.	at the Company's disposal.
			Mar 31	Mar 31	Dec 31
	Calculation of average shareholders' equity		2019	2018	2018
	March 31, 2019 (2,257) + March 31, 2018 (1,860) / 2		2,059
		March 31, 2018 (1,860) + March 31, 2018 (1,530) / 2		1,695
	31 Dec 2018 (2,272) + 31 Dec 2017 (1,821) / 2				2,047
				Mar 31	Dec 31
	Calculation of return on shareholders' equity		2019	2018	2018
	Earnings for the period		575	329	604
	Average shareholders' equity		2,059	1,695	2,047
	ROE margin (ratio)		27.9%	19.4%	29.5%
Equity/assets ratio	Shareholders' equity less minority		The equity/assets ratio shows the proportion of total
	interests as a percentage of total		assets represented by shareholders' equity and has been
	assets.		included to allow investors to be able to assess the
		Company's capital structure.
Net debt	Interest-bearing liabilities less liquid		Net debt is a measure deemed relevant for creditors and
	assets less interest-bearing	credit rating agencies.
	receivables.
Net debt/equity ratio	Interest-bearing net debt divided by	Net debt/equity ratio is a measure deemed relevant for
	shareholders' equity.	creditors and credit rating agencies.
EBITDA	Operating profit excluding	EBITDA is a measure deemed to provide investors a better
	amortization/depreciation.	understanding of the company's earnings.
					Dec 31
	Calculation of EBITDA		Mar 31	Mar 31
	Operating Result		2019 587	2018 424	2018 595
			31	20	24
	Depreciation
Net debt/FBITDA	EBITDA		618 Net debt/EBITDA is a measure deemed relevant for	444	619
	Interest-bearing liabilities less liquid assets less interest-bearing		creditors and credit rating agencies.
	receivables divided by EBITDA.

SERNEKE IN BRIEF

Serneke is a rapidly growing corporate group active in construction, civil engineering, projectdevelopment and property management with more than 1,100 employees. Through novel thinking, we drive development and create more effective and more innovative solutions for responsible construction. The business has a good mix of

Serneke Group AB (publ) Headquarters: Kvarnbergsgatan 2 411 05 Gothenburg Phone +46 (0)31-712 97 00 │ info@serneke.se public and commercial assignments, providing strength over economic cycles.

Serneke's annual reports and other financial information are available under the tab Investors at www.serneke.se

Presentation of the Interim Report for January-March 2019

On April 17, 2019 at 9:00 a.m. (CET), Serneke Group will comment on this Interim Report in a conference call with an online presentation for investors, and the media. The presentation will be in Swedish and can be followed live via webcast at https://tv.streamfabriken.com/semeke-q1-2019. Presentation materials for the presentation will be available on the website one hour before the webcast begins.

To participate, please dial: +46 8 51 99 93 83