NCC Group

Earnings Release • Jan 29, 2019

Interim report for the fourth quarter and full-year 2018

Change process continues with focus on profitablity

• Orders received amounted to SEK 17,750 M (16,223)
• Net sales totaled SEK 17,832 M (16,273).
• The result after financial items totaled SEK 229 M (-65).
• The result after tax amounted to SEK 160 M (-4)
• Earnings per share after dilution were SEK 1.47 (-0.04)

Fourth quarter Full-year 2018

• Orders received amounted to SEK 61,842 M (56,777).
• Net sales totaled SEK 57,346 M (54,441).
• The result after financial items totaled SEK -849 M (983).
• The result after tax amounted to SEK -750 M (877)
• Earnings per share after dilution were SEK -7.00 (8.07)
• The Board proposes a dividend of SEK 4.00 (8.00) per share for 2018, divided into two payments (read more on page 11).

	2018	2017	2018	2017
Group, SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
Orders received	17,750	16,223	61,842	56,777
Order backlog	56,837	51,734	56,837	51,734
Net sales	17,832	16,273	57,346	54,441
Operating profit/loss	256	-43	-764	1,075
Profit/loss after financial items	229	-65	-849	983
Net profit/loss for the period	160	-4	-750	877
Profit/loss per share after dilution, SEK	1.47	-0.04	-7.00	8.07
Cashflow before financing	1,942	1,244	-1,157	1,361
Net cash +/net indebtedness -	-3,045	-149	-3,045	-149

For definitions of key figures, see www.ncc.group/ Investor-relations/ Financial-data/ Financial-definitions

Comparative figures for NCC Building Sweden, NCC Building Nordics and NCC Infrastructure have been recalculated due to the introduction of new accounting policies according to IFRS 15, also refer to Note 1 Accounting Policies

CEO Tomas Carlsson comments

At the Capital Markets Day in October, we presented an action plan aimed at strengthening profitability. During the fourth quarter, we took steps to create a basis for a strong future for NCC. For example, we divested a number of development properties and the ViaSafe business, which was part of NCC Road Service. The sale of the remaining parts of Road Service is proceeding according to plan.

The conditions are generally favorable in our markets, with the exception of housing in Sweden and Denmark. The economies in the Nordic countries are stable. NCC has offset lower orders for housing by securing a higher level of orders for such projects as public-sector buildings and offices. Similar to earlier quarters in 2018, orders received in the fourth quarter were at a high level. We added to the order backlog during the year, which was SEK 5 billion higher at December 31 compared with the corresponding date a year earlier.

The result after financial items was SEK 229 M (-65) in the fourth quarter. The result was charged with SEK 152 M of the additional restructuring costs of approximately SEK 200 M, which were announced in the previous quarter. Cash flow before financing improved in the fourth quarter compared with the preceding year.

Earnings for the construction and civil engineering operations were impacted by the revaluations of the project portfolio implemented in the third quarter and, in combination with a cautious recognition of profit, this yielded low profitability for the full year.

The NCC Industry and NCC Property Development business areas improved their quarterly earnings compared with the preceding year. More development projects recognized in profit and land sales supported higher earnings from the property development business. We also commenced construction on four new property projects, of which two were large projects in Sweden: Kineum in Gothenburg and Bromma Blocks in Stockholm.

For the full year, the result after financial items was SEK - 849 M (983). The negative figure is mainly attributable to the provisions, revaluations and impairments totaling SEK 1,565 M made in the third quarter.

The core of NCC is strong. About two-thirds of the Group is performing well. We have successful operations in all countries and business areas, but we also have a number of operations that are not. We will further increase our focus on and proximity to our projects. We will be more meticulous in how we select projects, how we approach and implement them, and how we manage risk. We're on the right path. However, much work remains to be done and it will take time before the measures will have full effect.

Tomas Carlsson, President and CEO Solna, January 29, 2019

Group performance

Fourth quarter and full-year 2018

Market

The market conditions in 2018 were generally good. The economies in the Nordic countries are stable.

In the construction sector, a changed demography and expanding cities are driving the demand for schools, hospitals and homes for the elderly. Demand for newly produced housing has weakened from a high level in Sweden and toward the end of the year also in Denmark. The market for refurbishment is favorable in Denmark and Finland.

Public-sector infrastructure initiatives are fueling the Nordic infrastructure market and generating strong growth in Norway and Sweden. The share of major projects in excess of SEK 100 M is increasing.

In the industrial segment, a strong civil engineering market is driving demand for asphalt and stone materials in Norway and Sweden.

Low yield requirements from investors and high demand for modern and sustainable new premises provide favorable market conditions in the Nordic property market.

Orders received and order backlog

Orders received amounted to SEK 17,750 M (16,223) in the fourth quarter and to SEK 61,842 M (56,777) for full-year 2018. The increase in orders received for the year is mainly attributable to NCC Infrastructure and NCC Building Nordics. Changes in exchange rates increased orders received by SEK 1,067 M (282) in 2018.

The Group's order backlog was SEK 56,837 M (51,734) at year-end, an increase that is mainly due to higher orders received in NCC Infrastructure and NCC Building Nordics in the first quarter. Changes in exchange rates increased the order backlog by SEK 542 M (144).

Net sales and earnings

Net sales amounted to SEK 17,832 M (16,273) in the fourth quarter and to SEK 57,346 M (54,441) for full-year 2018. The higher net sales in the fourth quarter were mainly driven by NCC Property Development, which recognized projects in profit and carried out land sales. Changes in exchange rates increased net sales by SEK 1,077 M (309) in 2018.

NCC's operating result was SEK 256 M (-43) for the fourth quarter and SEK -764 M (1,075) for full-year 2018. Of the additional restructuring costs totaling SEK 200 M announced in the third quarter, SEK 152 M impacted earnings in the fourth quarter. The fourth quarter of 2017 was charged with SEK 75 M in restructuring costs. The higher operating result in the fourth quarter was mainly driven by transactions in NCC Property Development. The negative full-year result is mainly explained by the provisions, revaluations and impairments carried out in the third quarter.

Net financial items for full-year 2018 amounted to SEK -85 M (-91). Interest rate effects on loans and investments, lower credit margins and higher capitalization of interest rates for NCC Property Development had a positive effect, although this was offset by increased costs due to higher net debt during the year.

Cash flow

Cash flow from operating activities was SEK -375 M (2,158) for full-year 2018. The deterioration was primarily the result of a lower operational result, increased investments in development properties and a lower result from the sale of property projects. The revaluations carried out during the year that adversely impacted earnings did not affect cash flow for the period. Total cash and cash equivalents at the end of the period amounted to SEK 1,269 M (3,104).

The Group's net debt at December 31 amounted to SEK -3,045 M (-149). The change was mainly the result of lower cash flow and higher pension debt.

	2018	2017
Net debt, SEK M	Jan.-Dec.	Jan.-Dec.
Net debt, opening balance	-149	-222
- Cash flow from operating activities	-375	2,158
- Cash flow from investing activities	-782	-797
Cash flow before financing	-1,157	1,361
Acquisition/Sale of treasury shares	-11	-4
Change of provisions for pensions	-872	-399
Currency exchange differences in cash and cash equivalents	8	-20
Paid dividend	-864	-865
Net cash + /net debt - closing balance	-3,045	-149
- Whereof provisions for pensions	-2,279	-1,407
- Net debt excluding provisions for pensions	-766	1,258

The Group's total assets at December 31 amounted to SEK 27,001 M (27,018).

The average maturity period for interest-bearing liabilities, excluding pension debt according to IAS 19, was 34 months (34) at year-end. At December 31, 2018, NCC's unutilized committed lines of credit totaled SEK 3.6 billion (3.5), with an average remaining maturity of 33 (44) months.

Capital employed

The capital employed at December 31 amounted to SEK 7,619 M (9,174), a decrease mainly due to higher interest-free debt. The return on capital employed was -9 percent (12) in the fourth quarter.

Financial objectives

On October 15, the Board of Directors resolved to reduce the number of objectives for the Group to give greater clarity and focus on profitability ahead of volume. The decided objectives and the dividend policy remain unchanged and are as follows: return on equity ≥20%, operating margin ≥4%, net debt <2.5 times EBITDA. Dividend policy: The Group's dividend policy is to distribute at least 40% of after-tax profit for the year. The financial objectives for the business areas are unchanged.

Operating margin

Net debt excludes pension liabilities. EBITDA refers to operating profit according to the income statement, with reversal of depreciation and writedowns according to note 2 and 3.

Safety

Safety has a high priority and NCC has a zero vision with respect to worksite accidents. NCC's target is for the accident frequency rate* to be less than 3.5 in 2020. On a rolling 12-month basis, the accident frequency rate increased during the fourth quarter of 2018 compared with the corresponding period in 2017. No fatal accidents occurred in 2018. The most common injuries in 2018 were cuts, sprains, strains and fractures. The accident rate rose in all business areas except for NCC Building Sweden. Minor injuries were the main cause of the increase.

*Accident frequency: Worksite accidents resulting in several days of absence from work per million worked hours.

Accident frequency

NCC Infrastructure

Fourth quarter and full-year 2018

Orders received and order backlog

While orders received by NCC Infrastructure fell to SEK 5,796 M (6,559) in the fourth quarter, the full-year 2018 figure increased to SEK 21,271 M (19,278). The lower orders received in the fourth quarter was mainly attributable to the registration of the Korsvägen project (SEK 2.3 billion) among orders in the final quarter of 2017. Higher order intake in the Civil Engineering Norway division was behind the increase in orders received during the year. The order backlog increased to SEK 21,037 M (16,713) at the end of the year.

Net sales and earnings

Net sales amounted to SEK 5,134 M (5,234) in the quarter and to SEK 16,936 M (15,750) for full-year 2018. Higher sales in the period were mainly the result of a high level of activity in a number of major projects in the Civil Engineering Sweden division.

The operating result amounted to SEK -144 M (-64) in the quarter and SEK -698 M (-122) for full-year 2018. The operating result in the fourth quarter was charged with restructuring costs, as announced earlier, of about SEK 49 M. In addition to weak earnings from the project business, the result in the fourth quarter was impacted by increased zero recognition, meaning no recognition of earnings in early-stage projects where the risks in these projects are difficult to assess. The operating result in 2018 was lower in all divisions, with Civil Engineering Norway recording the largest decline. Much of the deterioration is attributable to the revaluations carried out in the third quarter.

Product mix

Orders received Jan-Dec

	2018	2017	2018	2017
NCC Infrastructure, SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
Orders received	5,796	6,559	21,271	19,278
Order backlog	21,037	16,713	21,037	16,713
Net sales	5,134	5,234	16,936	15,750
Operating profit/loss	-144	-64	-698	-122
Financial target:
Operating margin, % 1)	-2.8	-1.2	-4.1	-0.8

1) Target: operating margin ≥ 3.5%

A decision has been taken to divest the Road Service operation and accordingly, the division is presented separately from the fourth quarter of 2018. ViaSafe, a part of NCC Road Service, was divested in the fourth quarter.

	2018	2017	2018	2017
NCC Roads Service, SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
Orders received	424	531	3,609	2,450
Order backlog	3,749	2,969	3,749	2,969
Net sales	858	881	2,855	2,741
Operating profit/loss 1)	-6	-73	-296	-76

1) Restructuring costs are charged to earnings by SEK 8 M (0).

NCC Building Sweden

Fourth quarter and full-year 2018

Orders received and order backlog

Orders received increased to SEK 5,893 M (3,032) in the fourth quarter and to SEK 15,075 M (15,710) for full-year 2018. The increase in orders received in the fourth quarter was mainly due to a higher number of large projects. Orders received for housing units declined during the quarter.

The order backlog decreased to SEK 18,709 M (19,340) at the end of the year.

Net sales and earnings

Net sales amounted to SEK 4,614 M (4,473) in the fourth quarter and to SEK 15,701 M (14,178) for full-year 2018. The increase for the quarter and full year was the result of a higher work-up rate in a number of major projects.

The operating result was SEK 109 M (186) in the fourth quarter and SEK 453 M (489) for full-year 2018. The operating result was charged with higher revaluations than in the preceding year, with most of the project adjustments impacting the third quarter but also to a certain extent the fourth quarter.

Product mix

Orders received Jan-Dec

	2018	2017	2018	2017
NCC Building Sweden, SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
Orders received	5,893	3,032	15,075	15,710
Order backlog	18,709	19,340	18,709	19,340
Net sales	4,614	4,473	15,701	14,178
Operating profit/loss	109	186	453	489
Financial target:
Operating margin, % 1)	2.4	4.2	2.9	3.4

1) Target: operating margin ≥ 3.5%

NCC Building Nordics

Fourth quarter and full-year 2018

Orders received and order backlog

Orders received amounted to SEK 3,477 M (3,648) in the fourth quarter and to SEK 11,229 M (9,251) for full-year 2018. The decline in the fourth quarter is primarily attributable to lower orders received in both Norway and Denmark, while orders received in Finland increased compared with the year-earlier period. The increase in orders received for the full year was mainly attributable to Finland. Orders received remained strong for the refurbishment segment in the quarter and the largest segment for the full year.

The order backlog amounted to SEK 11,313 M (10,288) at year-end.

Net sales and earnings

Net sales increased to SEK 3,162 M (3,065) in the fourth quarter and to SEK 10,753 M (10,444) for full-year 2018. The increase for both the quarter and the full year was attributable to Denmark.

The operating result was SEK -78 M (-11) for the fourth quarter and SEK -227 M (-79) for full-year 2018. The result for the quarter was lower year on year, due mainly to previously announced restructuring costs of SEK 95 M and weak underlying operations, primarily in Norway. Both Finland and Denmark reported an positive operating profit in the quarter. The operating result for the full year was negative, impacted by revaluations in the third quarter.

Product mix

Orders received Jan-Dec

	2018	2017	2018	2017
NCC Building Nordics, SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
Orders received	3,477	3,648	11,229	9,251
Order backlog	11,313	10,288	11,313	10,288
Net sales	3,162	3,065	10,753	10,444
Operating profit/loss	-78	-11	-227	-79
Financial target:
Operating margin, % 1)	-2.5	-0.4	-2.1	-0.8

1) Target: operating margin ≥ 3.5%

NCC Industry

Fourth quarter and full-year 2018

Net sales and earnings

Net sales increased to SEK 3,876 M (3,839) in the fourth quarter and to SEK 12,968 M (12,393) for full-year 2018. The increase was due to higher sales in the asphalt operations, but also a high level of activity in the Danish and Swedish stone materials operations. The higher sales in the asphalt operations were largely the result of higher asphalt prices, driven by higher bitumen and energy costs.

The operating result was SEK 155 M (142) in the fourth quarter and SEK 350 M (577) for full-year 2018. The result for the quarter improved year on year, primarily due to the Danish asphalt operations being charged with impairments for projects in the fourth quarter of 2017. Annual results in all divisions were lower than in the preceding year. The asphalt operations in Sweden and Norway improved their results, while Finland and Denmark's results declined due to intensified competition. The stone materials operations' results were at a healthy level, excluding revaluations. The results in foundation engineering were impacted not only by revaluations in the third quarter, but also by lower sales in Sweden.

Capital employed

Capital employed increased as a result of higher investments and increased working capital and amounted to SEK 4.9 billion.

Geographical breakdown

Net sales Jan-Dec

	2018	2017	2018	2017
NCC Industry, SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
Orders received	3,058	3,077	12,943	12,522
Order backlog	3,092	3,059	3,092	3,059
Net sales	3,876	3,839	12,968	12,393
Operating profit/loss	155	142	350	577
Capital employed	4,902	4,400	4,902	4,400
Stone materials, tons 1)	7,539	8,822	29,275	31,298
Asphalt, tons 1)	1,788	1,797	6,415	6,509
Financial targets:
Operating margin, % 2)	4.0	3.7	2.7	4.7
Return on capital employed, % 3)			7.1	13.1

1) Sold volume

2) Target: operating margin ≥ 4%

3) Target: return on capital employed ≥ 10%

NCC Property Development

Fourth quarter and full-year 2018

Net sales and earnings

Net sales amounted to SEK 1,361 M (42) in the fourth quarter and to SEK 2,157 M (2,567) for full-year 2018. Four projects were recognized in profit in the fourth quarter: the Fredriksberg 1 office project and the Laajasalo 1 retail project in Finland, the Frederiks Plads 1 office project in Denmark and the Stavanger Business Park office project in Norway. No projects were recognized in profit in the fourth quarter of 2017. Nine (five) projects were recognized in profit for the full year. Land sales made a positive contribution to earnings in the quarter.

The operating result was SEK 144 M (-48) in the fourth quarter and SEK -181 M (601) for full-year 2018. The operating result for the full year was affected by the revaluation of development properties in Norway, Denmark and Finland with an amount of SEK 363 M as a result of the decision in the third quarter to discontinue these. The sales prices for Stavanger Business Park was SEK 39 M higher than the impaired carrying amount.

Property projects

Four projects were recognized in profit in the fourth quarter. Four projects started construction during the period: the Fredriksberg B and Fredriksberg C office projects in Finland, and Kineum Gårda and Bromma Blocks in Sweden.

Leasing in the full-year 2018 totaled 71,200 square meters (69,700), of which 53,500 (29,200) in the fourth quarter.

At the end of the fourth quarter 18 (22) projects were either ongoing or completed but not yet recognized in profit. The costs incurred in all projects amounted to SEK 2.7 billion (2.4), corresponding to a completion rate of 35 (45) percent. The leasing rate was 49 (60) percent. The operating net was SEK 38 M (50) for the full year and SEK 5 M (10) for the fourth quarter.

Geographical breakdown

Net sales Jan-Dec

Capital employed

Capital employed totaled SEK 4.3 billion at the end of the quarter, which is a decline of SEK 0.1 billion, compared with the third quarter.

	2018	2017	2018	2017
NCC Property Development, SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
Net sales	1,361	42	2,157	2,567
Operating profit/loss	144	-48	-181	601
Capital employed	4,314	4,086	4,314	4,086
Financial targets:
Operating margin, % 1)	10.6	neg	-8.4	23.4
Return on capital employed, % 2)			-3.9	15.7

1) Target: operating margin ≥ 10%

2) Target: return on capital employed ≥ 10%

NCC Property Development

Property development projects as of 2018-12-31 1)

Ongoing Property development projects

			Sold,
			estimated		Lettable	Letting
			recognition in	Completion	area	ratio,
Project	Type	Location	profit	ratio, %	(sqm)	%
Flintholm 2	Office	Copenhagen		59	9,300	100
Skejby CH Alfa	Office	Århus	Q1 2019	72	6,300	36
Zleep Hotel	Other	Århus	Q2 2019	59	3,200	100
CH Vallensbæk 4.2	Other	Vallensbæk		33	4,500	25
Total Denmark				58	23,300	71
Fredriksberg B	Office	Helsinki		2	6,700	0
Fredriksberg C	Office	Helsinki		2	4,300	0
Total Finland				2	11,000	0
Lysaker PP11	Office	Bærum	Q1 2019	85	6,700	77
Valle 1	Office	Oslo		63	7,700	42
Total Norway				75	14,400	59
Kineum Gårda	Office	Gothenburg	2)	2	21,300	69
K11	Office	Solna		52	12,000	2
K12	Office	Solna		54	21,700	94
Multihuset	Other	Malmö		66	19,700	59
Bromma Blocks	Office	Stockholm		15	51,600	31
Total Sweden				27	126,300	48
Total				32	175,000	48

Completed Property development projects

Total				25,600	65
Total Sweden				11,600	100
Brunna 4	Logistics	Upplands Bro		11,600	100
Total Denmark				14,000	49%
CH Vallensbæk 4.1	Office	Vallensbæk		6,100	40
Viborg Retail II+III	Retail	Viborg		900	0
Kolding Retailpark	Retail	Kolding		3,000	24
Roskildevej	Retail	Taastrup		4,000	100
Project	Type	Location	Sold, estimated recognition in profit	Lettable area (sqm)	Letting ratio, %

1) The table refers to ongoing or completed property projects that have not yet been recognized as revenue. In addition to

these projects, NCC also focuses on rental (rental guarantees / additional purchase) in nine previously sold and revenue recognized property projects, a maximum of approximately 50 MSEK.

2) The project comprises rentable area of an existing building of approximately 16,000 square meters and an additional building right about 30,000 square meters of office space. The project is carried out together with Platzer, a swedish listed real estate company, in a half-owned company. The information in the table refers to NCC's share of the project.

Property projects Leasing

Other

Significant risks and uncertainties

An account of the risks to which NCC may be exposed is presented in the 2017 Annual Report (pages 46–47). This description remains relevant.

Related-party transactions

Related parties are the Nordstjernan Group (including the associated company Bonava), NCC's subsidiaries, associated companies and joint arrangements. Related-party transactions were of a production nature. Related-company sales during the fourth quarter amounted to SEK 369 M (633) and purchases to SEK 0 M (61). Related-company sales for the full-year January-December period amounted to SEK 1,773 M (2,924) and purchases to SEK 21 M (224).

Seasonal effects

NCC Industry's operations and certain operations in NCC Building and NCC Infrastructure are impacted by seasonal variations due to cold weather. Earnings in the first quarter are normally weaker than the rest of the year.

Repurchase of shares

NCC AB holds 402,050 Series B treasury shares to meet its obligations pursuant to long-term incentive programs.

New accounting policies

NCC is applying IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments effective January 1, 2018. Read more on page 17.

Proposed dividend

The Board's proposal for the 2018 fiscal year is that a dividend of SEK 4.00 (8.00) be paid per share, divided between two payment occasions. The proposed record dates are April 11, 2019 for the first payment of SEK 2.00 and November 5, 2019 for the second payment of SEK 2.00.

Annual General Meeting (AGM)

NCC's Annual General Meeting (AGM) will be held at Norra Latin, Drottninggatan 71 B in Stockholm on April 9, 2019. The Meeting will open at 4:30 p.m. A notice convening the AGM will be published in Post- och Inrikes Tidningar, and will be posted on NCC's website www.ncc.se on March 8. Confirmation of the notice convening the AGM will be announced in Dagens Nyheter and Svenska Dagbladet. Motions for resolution by the AGM from the Board and the Nomination Committee will be available on the website, where it will also be possible to register for the AGM.

Changes in the business area structure

The NCC Building business area was split into two new business areas on October 1: NCC Building Sweden, with Henrik Landelius as Business Area Manager, and NCC Building Nordics, with Klaus Kaae as Business Area Manager.

Changes in the Executive Team

Susanne Lithander took office as CFO of NCC on November 12 and Ylva Lageson took office as Head of Development and Operations Services on October 8.

The Executive Team comprises:

• Tomas Carlsson, President and CEO
• Susanne Lithander, CFO
• Ylva Lageson, Head of Development and Operations Services
• Kenneth Nilsson, Head of NCC Infrastructure
• Klaus Kaae, Head of NCC Building Nordics
• Henrik Landelius, Head of Building Sweden
• Carola Lavén, Head of NCC Property Development
• Jyri Salonen, Head of NCC Industry

Events after year-end

NCC's Nomination Committee proposes that the Board of Directors, insofar as it is elected by the Annual General Meeting, comprise eight members with no deputies. The Nomination Committee proposes election of new Board member Alf Göransson and reelection of the following Board members: Chairman Tomas Billing (member since 1999, Chairman since 2001), Geir Aarstad (member since 2017), Viveca Ax:son Johnson (member since 2014), Mats Jönsson (member since 2017), Angela Langemar Olsson (member since 2018), Ulla Litzén (member since 2008) and Birgit Nørgaard (member since 2017). Carina Edblad has declined re-election.

Carola Lavén will leave the position as the head of NCC's Property Development business area to become the Deputy CEO and Investment Director at real estate company Castellum. Carola Lavén will continue in her current position until July 22 at the latest. The process of recruiting her successor has started.

Reporting occasions

2019 Annual General Meeting April 9, 2019 Interim report, Jan-Mar 2019 April 29, 2019 Interim report, Jan-Jun 2019 July 19, 2019 Interim report, Jan-Sep 2019 October 28, 2019 Interim report Jan-Dec 2019 January 2020

2018 Annual Report week beginning March 11, 2019

Signatures

Solna, January 29, 2019

Tomas Carlsson President and CEO

This report is unaudited.

Condensed consolidated income statement

		2018	2017	2018	2017
SEK M	Note 1	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
Net sales		17,832	16,273	57,346	54,441
Production costs	Note 2, 3	-16,785	-15,417	-55,205	-50,460
Gross profit		1,047	856	2,140	3,981
Selling and administrative expenses	Note 2, 3	-799	-916	-2,875	-2,933
Other operating income/expenses	Note 3	8	16	-29	26
Operating profit/loss		256	-43	-764	1,075
Financial income			11	36	39
Financial expense 1)		-27	-32	-121	-130
Net financial items		-27	-21	-85	-91
Profit/loss after financial items		229	-65	-849	983
Tax		-69	61	99	-106
Net profit/ loss		160	-4	-750	877
Attributable to:
NCC´s shareholders		160	-5	-756	872
Non-controlling interests			1	6	5
Net profit/loss for the period		160	-4	-750	877
Earnings per share
Before and after dilution
Net profit/loss for the period, SEK		1.47	-0.04	-7.00	8.07
Number of shares, millions
Total number of issued shares		108.4	108.4	108.4	108.4
Average number of shares outstanding before and after dilution during the period		108.0	108.1	108.1	108.1
Number of shares outstanding at the end of the period		108.0	108.1	108.0	108.1

1) Whereof interest expenses for the period Jan.-Dec.18, amounting to SEK 102 M and for the period Jan.- Dec. 2017 amounting to SEK 107 M.

Consolidated statement of comprehensive income

		2018	2017	2018	2017
SEK M	Note 1	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
Net profit/loss for the period		160	-4	-750	877
	Items that have been recycled or should be recycled to net profit/loss for the period
Exchange differences on translating foreign operations		-4	26	90	27
Change in hedging/fair value reserve			-5	-30	-7
Cash flow hedges		-45	11	-30	-3
Income tax relating to items that have been or should be
recycled to net profit/loss for the period		9	-1	12	2
		-40	31	41	19
Items that cannot be recycled to net profit/loss for the period
Revaluation of defined benefit pension plans		-379	142	-818	-250
	Income tax relating to items that can not be recycled to net profit/loss for the period	81	-31	175	55
		-298	111	-643	-195
Other comprehensive income		-338	142	-602	-176
Total comprehensive income		-178	138	-1,352	701
Attributable to:
NCC´s shareholders		-178	137	-1,358	696
Non-controlling interests			1	6	5
Total comprehensive income		-178	138	-1,352	701

Condensed consolidated balance sheet

		2018	2017
SEK M	Note 1	Dec. 31	Dec. 31
ASSETS
Fixed assets
Goodwill		1,861	1,848
Other intangible assets		339	335
Owner-occupied properties		915	880
Machinery and equipment		3,052	2,712
Long-term holdings of securities		119	129
Long-term interest-bearing receivables		195	575
Other long-term receivables		119	26
Deferred tax assets		531	338
Total fixed assets		7,133	6,843
Current assets
Properties held for future development		1,633	1,696
Ongoing property projects		2,292	1,039
Completed property projects		308	870
Participations in associated companies		226
Materials and inventories		902	764
Tax receivables		146	241
Accounts receivable		9,629	8,882
Worked-up, non-invoiced revenues		1,276	1,554
Prepaid expenses and accrued income		1,418	1,170
Current interest-bearing receivables		163	167
Other receivables		608	687
Short-term investments 1)		72	41
Cash and cash equivalents		1,197	3,063
Total current assets		19,868	20,174
Total assets		27,001	27,018
EQUITY
Share capital		867	867
Other capital contributions		1,844	1,844
Reserves		-72	-113
Profit/loss brought forward, including current-year profit/loss		292	2,571
Shareholders´ equity		2,931	5,168
Non-controlling interests		17	12
Total shareholders´ equity		2,948	5,179
LIABILITIES
Long-term liabilities
Long-term interest-bearing liabilities		1,342	1,669
Other long-term liabilities		8	54
Provisions for pensions and similar obligations		2,279	1,407
Deferred tax liabilities		297	438
Other provisions		2,563	1,889
Total long-term liabilities		6,488	5,456
Current liabilities
Current interest-bearing liabilities		1,051	919
Accounts payable		5,164	5,179
Tax liabilities			95
Invoiced revenues not worked-up		6,311	5,905
Accrued expenses and prepaid income		3,452	3,207
Provisions		68	24
Other current liabilities		1,520	1,052
Total current liabilities		17,566	16,382
Total liabilities		24,054	21,838
Total shareholders' equity and liabilities		27,001	27,018

1) Includes short-term investments with maturities exceeding three months, see also cash-flow statement.

		Dec. 31, 2018			Dec. 31, 2017
			Total			Total
	Shareholders´	Non-controlling	shareholders'	Shareholders'	Non-controlling	shareholders'
SEK M	equity	interests	equity	equity	interests	equity
Opening balance, January 1st	5,167	12	5,179	5,553	13	5,566
Adjustment for changed accounting principle:
IFRS 15 Income from agreements with customers				-220		-220
Adjusted opening balance, January 1st	5,167	12	5,179	5,334	13	5,346
Total comprehensive income	-1,358	6	-1,352	696	5	701
Dividend	-864		-864	-865	-6	-871
Sale/Acqusition of treasury shares	-11		-11	-4		-4
Performance based incentive program	-4		-4	5		5
Closing balance	2,931	17	2,948	5,168	12	5,179

If the principles for accounting for pensions, IAS19, applied before 1 January 2013, had been used, the equity would have been SEK 2,817 M higher and net debt SEK 2,279 M lower at December 31 2018.

Condensed consolidated cash flow statement

		2018	2017	2018	2017
SEK M	Note	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
OPERATING ACTIVITIES
Profit / loss after financial items		229	-65	-849	983
Adjustments for items not included in cash flow		333	467	1,637	1,112
Taxes paid		242	-127	-53	-432
Cash flow from operating activities before changes in working capital		804	276	735	1,664
Divestment of property projects		851	106	1,436	1,630
Gross investments in property projects		-1,072	-315	-2,602	-1,152
Other changes in working capital		1,477	1,416	55	17
Cash flow from changes in working capital		1,256	1,206	-1,110	494
Cash flow from operating activities		2,060	1,482	-375	2,158
INVESTING ACTIVITIES
Acquisition/Sale of subsidiaries and other holdings	Note 4	60	-22	62	-95
Acquisition/Sale of tangible fixed assets		-171	-201	-802	-645
Acquisition/Sale of other fixed assets		-9	-15	-42	-58
Cash flow from investing activities		-119	-238	-782	-797
Cash flow before financing		1,942	1,244	-1,157	1,361
FINANCING ACTIVITIES
Cash flow from financing activities 1)		-1303	-606	-717	-1,392
Cash flow during the period		639	638	-1,874	-31
Cash and cash equivalents at beginning of period		585	2,414	3,063	3,093
Effects of exchange rate changes on cash and cash equivalents		-29	11	8	1
Cash and cash equivalents at end of period		1,197	3,063	1,197	3,063
Short-term investments due later than three months		72	41	72	41
Total liquid assets at end of period		1,269	3,104	1,269	3,104

1)Of the total determined dividend SEK 864 M, SEK 432 M has been paid in April 2018 and SEK 432 M in November 2018.

Parent Company condensed income statement

		2018	2017	2018	2017
SEK M	Note 1	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
Net sales			61 55	174	188
Selling and administrative expenses			-80 -132	-376	-403
Operating profit			-19 -77	-202	-215
Result from financial investment
Result from participations in Group companies			-20	-208	629
Result from other financial fixed assets			11	12	12
Result from financial current assets			-1		4
Interest expense and similar items			15 -5	-47	-19
Result after financial items			-25 -70	-445	410
Appropriations		545	55	545	582
Tax		-142	-9	-101	-90
Net profit/loss for the period		378	-24	-1	903

The Parent Company consists primarily of head office functions plus a branch in Norway. Net sales pertain to charges to Group companies. The average number of employees was 51 (74). In 2018, earnings were charged with costs for departing personnel in an amount of SEK 33 M. The cost for the quarter was SEK 0 M. Participations in Group companies were also impaired by SEK 21 M during the quarter. Total impairment of shares and participations amount to SEK 644 M for the fullyear 2018.

Total approved dividends to shareholders amount to SEK 864 M, of which SEK 432 M was paid in April and SEK 432 M in November 2018.

Parent Company condensed balance sheet

		2018	2017
SEK M	Note 1	Dec. 31	Dec. 31
ASSETS
Fixed assets
Intangible fixed assets			38
Tangible fixed assets		24	8
Financial fixed assets		5,571	4,729
Total fixed assets		5,595	4,774
Current assets
Current receivables		875	402
Cash and bank balances			1,100
Treasury balances in NCC Treasury AB		161	863
Total current assets		1,036	2,365
Total assets		6,631	7,139
SHAREHOLDERS´ EQUITY AND LIABILITIES
Shareholders´ equity		2,891	3,768
Provisions		8	9
Long term liabilities		2,045	2,049
Current liabilities		1,687	1,313
Total shareholders' equity and liabilities		6,631	7,139

Notes

Note 1. Accounting policies

Group

This interim report has been compiled pursuant to IAS 34 Interim Financial Reporting. The interim report has been prepared in accordance with International Financial Reporting Standards (IFRS) and the interpretations of prevailing accounting standards issued by the International Financial Reporting Interpretations Committee (IFRIC), as approved by the EU.

The interim report has been prepared pursuant to the same accounting policies and methods of calculation as the 2017 Annual Report (Note 1, pages 58–67), apart from in respect of IFRS 15 and IFRS 9, which are being applied as of January 1, 2018 and which have the following impact on the financial statements (for a more detailed description, also refer to the descriptions in the notes mentioned above).

IFRS 15 Revenue from Contracts with Customers NCC has identified two revenue streams where IFRS 15 has or could have a material impact on NCC's financial statements.

The first revenue stream concerns the Building Sweden and Building Nordics and Infrastructure business areas and relates to contract modifications covering alterations and supplementary work, compensation for shortcomings in tender specifications and similar items. The requirement to report revenue in the aforementioned situations is higher under IFRS 15 than under IAS 11, in terms of both the documented right to, and probability of, payment from the customer.

The second revenue stream concerns the development of commercial properties in the Property Development business area and whether revenue is to be recognized over time (percentage of completion) or as previously at a specific time (when the property has been completed and handed over to the customer). NCC's analysis has been completed and NCC believes that revenue is normally to be recognized as before, meaning when the property is handed over to the customer. IFRS 15 is not deemed to have any material impact on prior years' revenue or during the period January 1 – December 31, 2018.

The impact in 2017 of the transition to IFRS 15 for the Infrastructure, Building Sweden and Building Nordics business areas is shown in the tables on the next page.

IFRS 9 Financial instruments

IFRS 9 has introduced new rules governing areas including the recognition and measurement of financial instruments, impairment of financial instruments and hedge accounting.

NCC's analysis of the effects of IFRS 9 shows that the new rules do not impact the Group's financial position because IFRS 9 does not significantly impact measurement. Nor

does IFRS 9 entail any significant effect on NCC's hedge accounting or – based on IFRS 9's methodology and NCC's history – on NCC's provisions for credit losses.

IFRS 16 Leases

The standard IFRS 16 Leases will be applied as of January 1, 2019. IFRS 16 replaces the previous standard IAS 17. NCC has decided to implement the standard according to the modified retrospective approach, which entails that identified leases are not restated retrospectively.

The application of IFRS 16 entails that NCC will recognize right-of-use assets with the associated lease liability for production equipment, rent of premises and land leases. The costs for these leases will be recognized in profit or loss as amortization and interest expense, respectively.

EBITDA and to a certain extent EBIT will strengthen. The key figures regarding capital effect and debt will be negatively impacted since recognized assets and interestbearing liabilities will increase.

Based on available information, NCC estimates that right-ofuse assets and attributable financial liabilities will increase by approximately SEK 1,700 M as of January 1, 2019.

Parent Company

The Parent Company has prepared its interim report pursuant to the Swedish Annual Accounts Act (1995:1554) and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.

The interim report for the Parent Company has been prepared in accordance with the same accounting policies and methods of calculation as the 2017 Annual Report (Note 1, pages 58–67), apart from IFRS 15 and the amendments of RFR 2 in terms of the application of the measurement of financial instruments using cost as the basis as of January 1, 2018. The application of these has had no impact on the financial statements.

Note 1. Accounting policies (cont'd)

INCOME STATEMENT	2017	Change	IFRS 15
SEK M	Jan.-Dec.		Jan.-Dec. 2017
Net sales	54,608	-167	54,441
Operating profit	1,242	-167	1,075
Tax	-141	35	-106
STATEMENT OF COMPREHENSIVE INCOME
Exchange differences on translating foreign operations	25	2	27
Earnings per share before & after dilution	9.29	-1.22	8.07

BALANCE SHEET	2017	Change	IFRS 15	2017	Change	IFRS 15
SEK M	Dec.		Dec. 2017	1 Jan.		1 Jan. 2017
ASSETS
Deferred tax assets	239	99	338	97	66	163
Worked-up, non-invoiced revenues	1,671	-117	1,554	1,737	-33	1,704
Total assets	27,035	-17	27,018	25,315	33	25,348
EQUITY
Shareholders´ equity	5,516	-349	5,168	5,553	-220	5,334
Total shareholders´ equity	5,528	-349	5,179	5,566	-220	5,346
LIABILITIES
Invoiced revenues not worked-up	5,574	331	5,905	4,355	253	4,608
Total shareholders' equity and liabilities	27,035	-17	27,018	25,315	33	25,348

Note 2. Depreciation/amortization

	2018	2017	2018	2017
SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
Other intangible assets	-18	-16	-65	-65
Owner-occupied properties	-12	-9	-40	-31
Machinery and equipment	-171	-152	-681	-621
Total depreciation	-202	-178	-785	-718

Note 3. Impairment losses

	2018	2017	2018	2017
SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
Properties held for future development	4		-130
Completed property projects			-240
Managed properties	6	-3	-3	-3
Machinery and equipment	10	-1	-2	-1
Goodwill within NCC Infrastructure			-36
Other intangible assets	-1		-41	-3
Total impairment expenses	19	-4	-453	-7

Note 4. Acquisition of operations

The Building Nordics business area acquired the construction company Jakobsen & Blindkilde via NCC A/S on April 1, 2018 and thereby gained a stronger position in Jutland but also in the rest of Denmark. The company has 75 employees and annual sales of about SEK 460 M.

The acquisitions had no material impact on the Group's earnings or financial position in the fourth quarter.

Note 5. Segment reporting

SEK M

	NCC	NCC			NCC
	Building	Building	NCC	NCC	Property	Total	Other and
October - December 2018	Sweden	Nordics	Infrastructure	Industry	Development	segments	eliminations 1)	Group
Net sales, external	4,387	2,890	5,863	3,337	1,353	17,829	3	17,832
Net sales, internal	227	273	129	539	8	1,175	-1,175
Net sales, total	4,614	3,162	5,992	3,876	1,361	19,004	-1,172	17,832
Operating profit	109	-78	-149	155	144	180	76	256
Net financial items								-27
Profit/loss after financial items								229
	NCC	NCC			NCC
	Building	Building	NCC	NCC	Property	Total	Other and
October - December 2017	Sweden	Nordics	Infrastructure	Industry	Development	segments	eliminations 1)	Group
Net sales, external	4,221	2,869	5,996	3,155	30	16,272	1	16,273
Net sales, internal	251	195	119	684	12	1,261	-1,261
Net sales, total	4,473	3,065	6,115	3,839	42	17,534	-1,260	16,273
Operating profit	186	-11	-137	142	-48	132	-175	-43
Net financial items								-21
Profit/loss after financial items								-65
SEK M
	NCC	NCC			NCC
	Building	Building	NCC	NCC	Property	Total	Other and
January -December 2018	Sweden	Nordics	Infrastructure	Industry	Development	segments	eliminations 2)	Group
Net sales, external	14,800	9,861	19,347	11,209	2,113	57,331	15	57,346
Net sales, internal	900	891	444	1,758	45	4,038	-4,038
Net sales, total	15,701	10,753	19,791	12,968	2,157	61,369	-4,023	57,346
Operating profit	453	-227	-993	350	-181	-597	-166	-764
Net financial items								-85
Profit/loss after financial items								-849
	NCC	NCC			NCC
	Building	Building	NCC	NCC	Property	Total	Other and
January -December 2017	Sweden	Nordics	Infrastructure	Industry	Development	segments	eliminations 2)	Group
Net sales, external	13,646	9,887	18,053	10,343	2,505	54,435	7	54,441
Net sales, internal	532	557	437	2,050	62	3,638	-3,638
Net sales, total	14,178	10,444	18,490	12,393	2,567	58,073	-3,631	54,441
Operating profit	489	-79	-198	577	601	1,389	-314	1,075
Net financial items								-91
Profit/loss after financial items								983

1) The figures for the quarter include among others NCC's head office and results from small subsidiaries and associated companies, totalling SEK 31 M (-89). Further, the figures for the quarter includes eliminations of internal profits of SEK 27 M (-22) and other Group adjustments, mainly consisting of differences of accounting policy between the segments and the Group (including pensions) and a provision for restructuring amounting SEK 18 M (-64).

2) The figures for the period include among others NCC's head office and results from small subsidiaries and associated companies, totalling SEK -187 M (-116). Further, the figures includes eliminations of internal profits amounting of SEK 11 M (10) and other Group adjustments, mainly consisting of differences of accounting policy between the segments and the Group (including pensions) and a provision for restructuring amounting SEK 10 M (-208).

Geographical areas

		Net sales	Orders received
	2018	2017	2018
SEK M	Jan.-Dec.	Jan.-Dec.	Jan.-Dec.	Jan.-Dec.
Sweden	35,489	34,761	38,218	38,702
Denmark	8,062	6,179	5,939	6,152
Finland	6,989	6,932	8,512	5,976
Norway	6,807	6,568	9,173	5,947
Total	57,346	54,441	61,842	56,777

Note 6. Fair value of financial instruments

In the tables below, disclosures are made concerning how fair value has been determined for the financial instruments that are continuously measured at fair value in NCC's balance sheet. When determining fair value, assets have been divided into three levels. No transfers were made between the levels during the period.

In level 1, measurement complies with the prices quoted on an active market for the same instruments. Derivatives in level 2 comprise currency forward contracts, interest-rate swaps, oil forward contracts and electricity forward

contracts used for hedging purposes. The measurement to fair value of currency forward contracts, oil forward contracts and electricity forward contracts is based on accepted models with observable input data such as interest rates, exchange rates and commodity prices. The measurement of interest-rate swaps is based on forward interest rates based on observable yield curves. In level 3, measurement is based on input data that is not observable in the market.

SEK M	Dec. 31, 2018			Dec. 31, 2017
	Level 1 Level 2 Level 3					Total Level 1 Level 2 Level 3		Total
Financial assets measured at fair value through profit and
loss
Securities held for trading					10			10
Short-term investments	72			72
Derivative instruments		127		127		43		43
Derivative instruments used in hedge accounting		34		34		45		45
Available-for-sale financial assets							91	91
Financial assets measured at fair value through other comprehensive income
Equity instruments			77	77
Total assets	72	161	77	310	10	88	91	189
Financial liabilities measured at fair value through profit
and loss
Derivative instruments		4		4		3		3
Derivative instruments used in hedge accounting		51		51		55		55
Total liabilities	0	55	0	55	0	58	0	58

In the tables below, disclosures are made concerning fair value for the financial instruments that are not recognized at fair value in NCC's balance sheet.

SEK M	Dec. 31, 2018		Dec. 31, 2017
	Carrying Fair		Carrying	Fair
	amount	value	amount	value
Long-term interest-bearing receivables held to maturity			131	131
Long-term interest-bearing receivables - amortized cost*	195	196
Short-term investments held to maturity			30	30
Long-term interest-bearing liabilities	1,342	1,343	1,669	1,676
Current interest-bearing liabilities	1,051	1,051	919	925

* Dec 31 2018 includes other long-term interest bearing receivables with previous classification "accounts and loan receivables".

For other financial instruments recognized at amortized cost – accounts receivables, current interest-bearing receivables, other receivables, cash and cash equivalents, accounts payable and other interest-free liabilities – the fair value does not materially deviate from the carrying amount.

Note 7. Pledged assets, contingent liabilities and guarantee obligations

SEK M	2018	2017
Group	Dec. 31	Dec. 31
Assets pledged	503	429
Contingent liabilities and guarantee obligations 1)	602	510
Parent company
Contingent liabilities and guarantee obligations 1)	19,678	19,280

1) Among these, NCC AB has sureties which are indemnified by Bonava AB based on the Master Separation Agreement. Bonava is working on formally replacing these sureties with other forms of collateral in a gradual process, which means that this item will decline further over time. In addition, NCC AB has received guarantees from credit insurance companies for the remaining outstanding commitments on behalf of now wholly owned Bonava companies.

Summary of key figures

	2018	20173)	2018	20173)	2017	2016	2015	2014	2013
		Oct.-Dec. Oct.-Dec.	Jan-.Dec.	Jan.-Dec.	Jan.-Dec.	Jan.-Dec.	Jan.-Dec.	Jan.-Dec.	Jan.-Dec.
Profitability ratios
Return on shareholders equity, % excl profit from dividend of Bonava 1)	-18	17	-18	17	18	19	26	22	26
Return on shareholders equity, % incl profit from dividend of Bonava 1) 5)	-18	17	-18	17	18	118	26	22	26
Return on capital employed, % excl profit from dividend of Bonava 1)	-9	12	-9	12	13	13	17	14	15
Return on capital employed, % incl profit from dividend of Bonava 1) 5)	-9	12	-9	12	13	63	17	14	15
Financial ratios at period-end
EBITDA % excl profit from dividend of Bonava	2.5	0.8	0.8	3.3	3.6	4.7	6.2	5.8	5.9
EBITDA % incl profit from dividend of Bonava 5)	2.5	0.8	0.8	3.3	3.6	17.0	6.2	5.8	5.9
Interest-coverage ratio, times excl profit from dividend of Bonava 1)	-6.0	8.5	-6.0	8.5	9.8	6.6	7.1	6.4	7.8
Interest-coverage ratio, times incl profit from dividend of Bonava1) 5)	-6.0	8.5	-6.0	8.5	9.8	31.1	7.1	6.4	7.8
Equity / asset ratio, %	11	19	11	19	20	22	25	23	22
Interest bearing liabilities/total assets, %	17	15	17	15	15	16	24	26	25
Net cash +/ net debt -, SEK M	-3,045	-149	-3,045	-149	-149	-222	-4,552	-6,836	-5,656
Debt / equity ratio, times	1.0	0.0	1.0	0.0	0.0	0.0	0.5	0.8	0.7
Capital employed at period end, SEK M	7,619	9,174	7,619	9,174	9,523	9,585	19,093	18,935	18,345
Capital employed, average	8,780	9,138	8,780	9,138	9,418	13,474	18,672	18,531	18,005
Capital turnover rate, times1)	6.5	6.0	6.5	6.0	5.8	4.1	3.3	3.1	3.2
Share of risk-bearing capital, %	12	21	12	21	22	24	25	23	23
Closing interest rate, %	1.3	2.0	1.3	2.0	2.0	2.6	2.8	2.8	3.3
Average period of fixed interest, years	0.5	0.6	0.5	0.6	0.6	0.9	0.9	1.1	1.2
Per share data
Profit/loss after tax, before and after dilution, SEK excl profit from dividend Bonava	1.47	-0.04	-7.00	8.07	9.29	11.61	19.59	17.01	18.40
Profit/loss after tax, before and after dilution, SEK incl profit from dividend Bonava 5)	1.47	-0.04	-7.00	8.07	9.29	73.81	19.59	17.01	18.40
Cash flow from operating activities, before and after dilution, SEK	19.07	13.71	-3.47	19.97	19.97	10.88	37.65	12.47	23.46
Cash flow before financing, before and after dilution, SEK	17.98	11.51	-10.71	12.59	12.59	-0.05	30.88	5.32	15.40
P / E ratio excl profit from dividend Bonava 1)	-20	19	-20	19	17	19	13	15	11
P / E ratio incl profit from dividend Bonava 1) 5)	-20	19	-20	19	17	3	13	15	11
Dividend, ordinary, SEK			4.00	8.00	8.00	8.00	3.00	12.00	12.00
Dividend yield, %			2.9	5.1	5.1	3.5	1.1	4.9	5.7
Shareholders' equity before dilution, SEK	27.13	47.81	27.13	47.81	51.04	51.39	89.85	82.04	80.24
Shareholders' equity after dilution, SEK	27.13	47.81	27.13	47.81	51.04	51.39	89.85	82.04	80.24
Share price / shareholders' equity, %	508	329	508	329	308	439	293	301	262
Share price at period-end, NCC B, SEK	137.80	157.30	137.80	157.30	157.30	225.40	263.00	246.80	209.90
Number of shares, millions
Total number of issued shares 2)	108.4	108.4	108.4	108.4	108.4	108.4	108.4	108.4	108.4
Treasury shares at period-end	0.4	0.4	0.4	0.4	0.4	0.4	0.6	0.6	0.6
Total number of shares outstanding at period-end before dilution	108.0	108.1	108.0	108.1	108.1	108.1	107.9	107.8	107.8
Average number of shares outstanding before dilution during the period	108.0	108.1	108.1	108.1	108.1	108.1	107.9	107.8	107.9
Market capitalization before dilution, SEK M 4)	14,896	16,997	14,896	16,997	16,997	24,325	28,369	26,574	22,625
Personnel
Average number of employees	16,290	17,762	16,290	17,762	17,762	16,793	17,872	17,669	18,360

1) Calculations are based on the ro lling 12 month period.

2) All shares issued by NCC are common shares.

3) The amounts are adjusted for change in accounting policy regarding IFRS 15.

4) M arket value December 2016 excludes NCC´s residential business, Bonava. Including Bonava the maket value amounts to SEK 39 563 M .

5) The profit arising from the dividend of Bonava was SEK -31 M and SEK 6,724 M in the full year 2016 and 2017.

For definitions of key figures, see www.ncc.gro up/investor-relations/financial-data/financial-definitions.

Contact information

Chief Financial Officer Susanne Lithander Tel. +46 (0)73-037 08 74

IR Manager Johan Bergman Tel. +46 (0)8-585 523 53, +46 (0)70-354 80 35

Information meeting

An information meeting with an integrated telephone conference will be held on January 30 at 10:00 a.m. at Tändstickspalatset, Västra Trädgårdsgatan 15 in Stockholm. The presentation will be held in English. To participate in this teleconference, call +46 8 566 427 07 (SE), +44 333 300 92 66 (UK) or +1 844 625 15 70 (US), five minutes prior to the start of the conference.

This is the type of information that NCC is obligated to disclose pursuant to the EU Market Abuse Regulation. The information was issued for publication through the agency of the contact persons set out above on January 29, 2019, at 6:10 p.m. CET.

Vallgatan 3, SE-170 170 Solna, Sweden

NCC AB, SE-170 80 Solna, Sweden

+46 (0)8 585 510 00

www.ncc.se

info@ncc.se