NCC Group

Quarterly Report • Jul 17, 2015

Interim report January 1 - June 30, 2015

April 1 - June 30, 2015

• Orders received SEK 15,754 M (17,303)
• Net sales SEK 14,152 M (13,479)
• Profit after financial items SEK 541 M (576)
• Profit after tax for the period SEK 436 M (451)
• Earnings per share SEK 4.02 (4.14)

January 1 - June 30, 2015

• Orders received SEK 29,122 M (30,527)
• Net sales SEK 25,360 M (23,311)
• Profit after financial items SEK 287 M (336)
• Profit after tax for the period SEK 232 M (264)
• Earnings per share SEK 2.14 (2.43)

	2015	2014	2015	2014	Jul. 14-	2014
SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
Orders received	15,754 15,754	17,303	29,122 29,122	30,527	59,975	61,379
Net sales	14,152 14,152	13,479	25,360 25,360	23,311	58,916	56,867
Operating profit/loss	649 649	677	489 489	515	2,578	2,604
Profit/loss after financial items	541	576	287	336	2,185	2,234
Net profit/loss for the period	436	451	232	264	1,806	1,838
Profit/loss per share after dilution, SEK	4.02	4.14	2.14	2.43	16.72	17.01
Cashflow before financing	-1,079 -1,079	-1,267	-2,077 -2,077	-2,227	723	574
Return on shareholders´ equity after tax, %					23	22
Debt/equity ratio, times	1.3 1.3	1.2	1.3 1.3	1.2	1.3	0.8
Net indebtedness	9,725 9,725	8,760	9,725 9,725	8,760	9,725	6,836

CONTENTS

Comments by CEO 2 Group performance 3 NCC's Construction units 5 NCC Roads 7 NCC Housing 8 NCC Property Development 10 Accounts, Group 12 Notes, Group 15 Accounts, Parent Company 19 Notes, Parent Company 20 Reporting by geographical market and quarterly review 23 Key figures 24 NCC in brief 25

Comments from CEO Peter Wågström

NCC´s net sales increased in the second quarter and we had orders received which lead to an increase in order backlog to over SEK 58 billion. However, earnings were lower, mainly attributable to weak profitability in the construction operations in Norway and the impairment of a housing project in the housing development business in Norway. NCC's profit after financial items was SEK 541 M (576) for the second quarter, and SEK 287 M (336) for the first half of the year.

HIGHER SALES AND EARNINGS IN CONSTRUCTION OPERATIONS

During the quarter, higher net sales led to improved earnings for construction operations. The operating margin deteriorated slightly. Orders received were lower than in the year-earlier period, but we also signed several major strategic partnering agreements in Sweden, which will lead to orders received in future quarters. These included an agreement with Sörmland County Council for three hospital projects. Strategic partnering is an open alliance across multiple projects with the same team, which from experience leads to higher quality and lower cost. I think we will see more of this in the future.

HIGHER EARNINGS IN ASPHALT OPERATIONS

Overall, the industrial business performed in line with the year-earlier period during the second quarter. Although sales were slightly lower, earnings and the margin were slightly higher. Lower earnings in road services and the stone materials operations were offset by higher earnings in the asphalt operations, primarily in Norway and Finland.

MIXED RESULT FROM THE HOUSING DEVELOPMENT BUSINESS

Conditions are favorable in many of our housing markets, and sales are healthy. Earnings were lower year-on-year, since the result was charged with an impairment loss for a housing project in Stavanger, Norway. During the quarter, the total number of construction starts was slightly lower due to fewer starts in St. Petersburg. In Sweden and Germany, we increased the number of starts for private customers.

NEW PROPERTY PROJECTS

We started two new property projects in the second quarter, one office project in Finland and the Mölndal Galleria in Sweden. We have worked closely with the municipality and our partners to develop a sustainable and attractive inner-city environment in Mölndal.

PROFIT/LOSS AFTER FINANCIAL ITEMS, SEK M

IMPROVED SECOND HALF-YEAR

NCC has ideal conditions to end the second half of the year on a better note than the year-earlier period. Our order book is well-filled, we notice that sales and earnings are increasing in construction operations and we have more housing projects to recognize in profit.

Peter Wågström, President and CEO Solna, July 17, 2015

Group performance

MOST RECENT QUARTER, APRIL - JUNE 2015

ORDERS RECEIVED AND ORDER BACKLOG

Orders received totaled SEK 15,754 M (17,303). Orders received for NCC Construction Sweden were lower in civil engineering and building operations. NCC Construction Denmark declined in building and housing operations. In NCC Construction Finland, orders received were higher for housing operations. Orders received were higher in NCC Roads, NCC Housing and NCC Construction Norway. In NCC Roads, orders received were higher in Road services and Asphalt. Changes in exchange rates increased orders received by SEK 99 M compared with the year-earlier period. The Group's order backlog amounted to SEK 58,380 M. Changes in exchange rates reduced the order backlog by SEK 315 M during the quarter.

NET SALES

Net sales totaled SEK 14,152 M (13,479). Higher sales in NCC Construction Sweden and NCC Construction Denmark offset lower sales in other business areas. For NCC Construction Sweden, sales increased in all operational categories, while housing operations increased in NCC Construction Denmark. Changes in exchange rates had a positive impact of SEK 71 M on sales compared with the year-earlier period.

OPERATING PROFIT

NCC's operating profit was lower than the year-earlier period and totaled SEK 649 M (677). Earnings were higher in NCC's Construction units in Sweden and Denmark due to higher sales. NCC Property Development posted higher earnings, attributable to a combination of project sales, higher property management earnings and sales of land. NCC Roads, which accounted for a major portion of the Group's earnings during the quarter, delivered earnings that were marginally higher than the year-earlier period. NCC Housing's earnings were lower during the quarter due to impairment of a project in Stavanger with SEK 48 M. NCC Construction Norway's earnings were charged with impairment losses in some building projects.

CASH FLOW

Cash flow from operating activities improved year-on-year and amounted to negative SEK 1,079 M (neg: 1,267). The improvement was attributable to positive exchange-rate differences. Cash flow from divested housing units was favorable, although slightly lower than the year-earlier period. Cash flow from other working capital was seasonally weak but improved, mainly due to lower accounts receivable compared with the year-earlier period.

SEASONAL EFFECTS

NCC Roads' operations and certain operations in NCC's Construction units are impacted by seasonal variations due to cold weather. The first quarter is normally weaker than the rest of the year.

ORDER BACKLOG

NET INDEBTEDNESS

At June 30, net indebtedness (interest-bearing liabilities less cash and cash equivalents less interest-bearing receivables) amounted to SEK 9,725 M (8,760), refer also to Note 5, Specification of net indebtedness. At March 31, 2015, net indebtedness was SEK 8,754 M. The average maturity period for interest-bearing liabilities, excluding loans in Finnish housing companies and Swedish tenantowner associations, as well as pension commitments according to IAS 19, was 32 (33) months at the end of the quarter. NCC's unutilized committed lines of credit at the end of the quarter amounted to SEK 4.7 billion (4.0), with an average remaining maturity of 44 (29) months.

INTERIM PERIOD, JANUARY - JUNE 2015

ORDERS RECEIVED AND ORDER BACKLOG

Orders received amounted to SEK 29,122 M (30,527). Orders received were lower in all business areas, except for NCC Roads, compared with the year-earlier period. Changes in exchange rates had a positive year-on-year impact of SEK 255 M on orders received. The order backlog increased and amounted to SEK 58,380 M at the end of the period. Changes in exchange rates reduced the order backlog by SEK 418 M.

NET SALES

Net sales totaled SEK 25,360 M (23,311). The improvement was mainly due to higher sales in NCC Construction Sweden, in all operational categories. NCC Construction Denmark, NCC Housing and NCC Roads also posted higher net sales. Changes in exchange rates had a positive year-on-year impact of SEK 269 M on sales.

OPERATING PROFIT

NCC's operating profit totaled SEK 489 M (515).

NET INDEBTEDNESS

Earnings increased in the Construction units in Sweden and Denmark due to volume growth. NCC Housing's earnings were charged with the impairment of a project in Norway. Net financial items amounted to an expense of SEK 202 M (expense: 178). Increased net indebtedness and higher interest rates in Russia, year-on-year, had a negative impact on the financial net.

CASH FLOW

Cash flow from operating activities improved during the first half of the year, compared with the year-earlier period, due to lower capital tied-up in housing projects, and a year-on-year improvement in adjustments for non-cash items (essentially depreciation and exchange-rate differences).

NET INDEBTEDNESS

At June 30, net indebtedness (interest-bearing liabilities less cash and cash equivalents less interest-bearing receivables) amounted to SEK 9,725 M (8,760), refer also to Note 5, Specification of net indebtedness.

	2015 2015	2014	2015 2015	2014	Jul. 14-	2014
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
Net indebtedness, opening balance	-8,754 -8,754	-6,572 -6,572	-6,836	-5,656	-8,760	-5,656
Cash flow before financing	-1,079	-1,267	-2,077	-2,227	723	574
Change of provisions for pensions	108	-274	-164	-231	-393	-460
Paid dividend		-647	-647	-647	-1,294	-1,294
Net indebtedness, closing balance	-9,725 -9,725	-8,760 -8,760	-9,725	-8,760	-9,725	-6,836

ORDERS RECEIVED AND ORDER BACKLOG

			Orders received					Order backlog
	2015 2015	2014	2015 2015	2014	Jul. 14- 14-	2014	2015	2014	2014
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.Jan.-Jun.	Jan.-Jun.	Jun.-15 Jun.-15	Jan.-Dec.	Jun. 30 30	Jun. 30	Dec. 31
NCC Construction Sweden	6,488	7,758	11,808	12,693	24,014	24,899	20,911	19,562	20,321
NCC Construction Denmark	970	1,803	2,160	2,624	5,124	5,587	5,693	5,384	6,056
NCC Construction Finland	2,030	1,814	2,825	2,879	5,115	5,169	4,624	5,247	4,504
NCC Construction Norway	1,078	1,038	2,075	2,808	6,921	7,653	6,283	6,287	7,258
NCC Roads	3,503	3,082	7,223	6,127	11,622	10,526	7,180	7,894	4,608
NCC Housing	3,099	2,928	5,347	5,611	12,254	12,518	18,309	17,044	16,878
Total Total	17,168 17,168	18,424	31,439	32,741	65,050	66,352	62,999	61,418	59,625
Other items and eliminations	-1,414	-1,120	-2,317	-2,214	-5,075	-4,972	-4,619	-4,760	-4,848
Group Group	15,754 15,754	17,303	29,122	30,527	59,975	61,379	58,380	56,657	54,777
of which
proprietary housing projects to private customers 2,690		2,567	4,845	5,087	11,052	11,295	16,918	14,506	15,026
proprietary property development projects 822		1,143	941	1,251	1,687	1,996	2,001	2,675	1,847

NET SALES AND OPERATING PROFIT

			Net sales						Operating profit
	2015 2015	2014	2015 2015	2014	Jul. 14-	2014	2015	2014	2015	2014	Jul. 14-	2014
SEK M	Apr.-Jun. Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
NCC Construction Sweden	6,114	5,145	11,218	9,340	22,666	20,788	168	146	250	195	695	640
NCC Construction Denmark	1,204	963	2,339	1,846	4,823	4,330	76	65	140	116	305	281
NCC Construction Finland	1,350	1,674	2,573	2,933	5,745	6,105	35	37	42	57	96	111
NCC Construction Norway	1,517	1,587	3,068	3,085	6,716	6,733	11	24	39	28	158	146
NCC Roads	3,218	3,271	4,523	4,489	12,187	12,153	259	255	-140	-134	453	459
NCC Housing	1,863	2,051	3,628	3,404	10,449	10,226	110	159	187	212	924	949
NCC Property Development	511	579	982	1,317	2,791	3,125	53	40	81	90	159	169
Total Total	15,777 15,777	15,269	28,330	26,413	65,377	63,460	712	726	599	562	2,791	2,755
Other items and eliminations	-1,625	-1,790	-2,970	-3,102	-6,461	-6,593	-63	-49	-110	-47	-214	-151
Group Group	14,152 14,152	13,479	25,360	23,311	58,916	56,867	649	677	489	515	2,578	2,604

The comparative figures are pro-forma with adjustments because housing production in Russia and the Baltic countries was transferred from NCC Construction Finland to NCC Housing.

NCC's Construction units

MARKET PERFORMANCE

Demand in the Swedish construction market is favorable in all segments. In Norway, infrastructure investments are contributing to an expanding civil-engineering market. The Finnish market remained weak. In Denmark, growth was primarily noted in the metropolitan regions of Copenhagen and Aarhus in housing and other buildings segments, in both new builds and refurbishment.

MOST RECENT QUARTER, APRIL - JUNE 2015

ORDERS RECEIVED AND ORDER BACKLOG

Orders received by all of NCC's Construction units totaled SEK 10,567 M (12,413). Orders received declined in building and civil engineering, but increased in housing. Overall, the order backlog rose SEK 225 M during the quarter and amounted to SEK 37,511 M.

NET SALES

Sales for NCC's Construction units increased to SEK 10,184 M (9,369). Net sales were higher year-on-year in Sweden and Denmark, but lower in Finland and Norway. In Sweden, sales increased in all operational categories, while the increase in Denmark was mainly attributable to housing. In Finland, sales declined primarily in housing operations and in Norway, sales declined in building and housing but increased in civil engineering.

OPERATING PROFIT

Operating profit for all of NCC's Construction units

totaled SEK 290 M (272). Improved earnings in Sweden and Denmark were mainly derived from increased net sales. In Norway, earnings declined due to the impairment of projects in some building projects. In Finland, earnings were in line with the year-earlier period, despite lower sales.

INTERIM PERIOD, JANUARY - JUNE 2015

ORDERS RECEIVED AND ORDER BACKLOG

Orders received by all of NCC's Construction units totaled SEK 18,869 M (21,003). Orders received mainly declined in building operations, but also in civil engineering operations.

NET SALES

Overall, sales in Construction units totaled SEK 19,198 M (17,204). In Sweden, the production of housing increased most, but all operational categories increased. Housing operations also increased in Denmark, but declined in Finland. In Norway, sales in civil engineering operations were higher.

OPERATING PROFIT

Overall, operating profit totaled SEK 471 M (395). Increased sales contributed to improved earnings for NCC's Construction units in Sweden and Denmark. In Norway, lower sales and administrative costs generated higher earnings. Sales were lower in Finland, which in combination with a lower project margin during the first quarter, led to lower half-year earnings.

	2015 2015	2014	2015 2015	2014	Jul. 14-	2014
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
NCC Construction Sweden
Orders received	6,488 6,488	7,758	11,808 11,808	12,693	24,014	24,899
Order backlog	20,911 20,911	19,562	20,911 20,911	19,562	20,911	20,321
Net sales	6,114 6,114	5,145	11,218 11,218	9,340	22,666	20,788
Operating profit/loss	168 168	146	250 250	195	695	640
Operating margin, %	2.7 2.7	2.8	2.2 2.2	2.1	3.1	3.1
NCC Construction Denmark
Orders received	970 970	1,803	2,160 2,160	2,624	5,124	5,587
Order backlog	5,693 5,693	5,384	5,693 5,693	5,384	5,693	6,056
Net sales	1,204 1,204	963	2,339 2,339	1,846	4,823	4,330
Operating profit/loss	76 76	65	140	116	305	281
Operating margin, %	6.3 6.3	6.8	6.0 6.0	6.3	6.3	6.5
NCC Construction Finland
Orders received	2,030 2,030	1,814	2,825 2,825	2,879	5,115	5,169
Order backlog	4,624 4,624	5,247	4,624 4,624	5,247	4,624	4,504
Net sales	1,350 1,350	1,674	2,573 2,573	2,933	5,745	6,105
Operating profit/loss	35 35	37	42	57	96	111
Operating margin, %	2.6 2.6	2.2	1.6 1.6	1.9	1.7	1.8
NCC Construction Norway
Orders received	1,078 1,078	1,038	2,075 2,075	2,808	6,921	7,653
Order backlog	6,283 6,283	6,287	6,283 6,283	6,287	6,283	7,258
Net sales	1,517 1,517	1,587	3,068 3,068	3,085	6,716	6,733
Operating profit/loss	11 11	24	39	28	158	146
Operating margin, %	0.7 0.7	1.5	1.3 1.3	0.9	2.4	2.2
Total Construction
Orders received	10,567 10,567	12,413	18,869 18,869	21,003	41,175	43,307
Order backlog	37,511 37,511	36,479	37,511 37,511	36,479	37,511	38,139
Net sales	10,184 10,184	9,369	19,198 19,198	17,204	39,950	37,956
Operating profit/loss	290 290	272	471 471	395	1,255	1,179
Operating margin, %	2.8 2.8	2.9	2.5 2.5	2.3	3.1	3.1

The comparative figures are pro-forma with adjustments because housing production in Russia and the Baltic countries was transferred from NCC Construction Finland to NCC Housing

0% 1% 2% 3% 4% 5% 2,000 4,000 6,000 8,000 10,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 Orders received SEK M Net sales SEK M Operating margin %

ORDERS RECEIVED BY PROJECT SIZE DURING THE SECOND QUARTER FOR NCC'S CONSTRUCTION UNITS

NCC CONSTRUCTION FINLAND

ORDER BACKLOG BY PROJECT SIZE FOR NCC'S CONSTRUCTION UNITS

ORDERS RECEIVED AND ORDER BACKLOG BY OPERATIONAL CATEGORY

		Orders received					Order backlog
	2015	2014	2015	2014	Jul. 14 -	2014	2015	2014	2014
SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 15	Jan.-Dec.	Jun. 30	Jun. 30	Dec. 31
Civil engineering	2,677	3,175	6,120	6,490	15,250	15,620	11,827	11,262	12,541
Residential	3,806	3,586	6,175	5,480	13,110	12,415	13,223	9,566	11,496
Non-residential	4,073	5,687	6,529	9,049	12,787	15,306	12,657	15,281	13,503
Other items 1)	11	-35	45	-16	27	-34	-195	370	598
Total	10,567 10,567	12,413 12,413	18,869	21,003	41,175	43,307	37,511	36,479	38,139

1) From 2015, eliminations are included in the business category.

NCC CONSTRUCTION SWEDEN

NCC Roads

MARKET PERFORMANCE

In the second quarter, demand for stone materials was favorable but slightly lower in Sweden due to fewer large civil engineering projects. Demand for asphalt rose yearon-year, primarily in Sweden, Denmark and Finland. Demand in road services was stable, but the market was characterized by intense competition.

MOST RECENT QUARTER, APRIL - JUNE 2015

NET SALES

Sales amounted to SEK 3,218 M (3,271). Higher volumes in asphalt paving offset lower volumes of stone materials sold.

OPERATING PROFIT

Operating profit for the quarter totaled SEK 259 M (255). The increase was attributable to higher earnings in the asphalt operations, due to higher paving volumes, and improved margins, primarily in Norway.

CAPITAL EMPLOYED

Capital employed increased seasonally during the quarter, due to a higher level of activities, and totaled SEK 4.2 billion.

INTERIM PERIOD, JANUARY - JUNE 2015

NET SALES

Sales amounted to SEK 4,523 M (4,489). Sales rose for stone materials and asphalt, but were lower in road services due to fewer public contracts.

OPERATING PROFIT Operating loss was SEK 140 M (loss: 134).

CAPITAL EMPLOYED

Capital employed rose SEK 0.6 billion compared with yearend, and totaled SEK 4.2 billion.

QUARTERLY DATA

2015 2015	2014	2015 2015	2014	Jul. 14-	2014
Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun.Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
3,503 3,503	3,082	7,223 7,223	6,127	11,622	10,526
7,180 7,180	7,894	7,180 7,180	7,894	7,180	4,608
3,218 3,218	3,271	4,523 4,523	4,489	12,187	12,153
259 259	255	-140 -140	-134	453	459
8.1 8.1	7.8	-3.1 -3.1	-3.0	3.7	3.8
		4,227 4,227	4,313	4,227	3,619
7,862 7,862	8,273	12,847 12,847	12,910	28,209	28,272
1,985 1,985	1,930	2,103 2,103	2,063	6,256	6,216

1) Sold volume.

NCC Housing

MARKET PERFORMANCE

Demand was healthy in Sweden and Germany. Demand was weaker in Finland, but small and affordable housing units are in demand in the investor market and among private customers. There were major local variations in Norway. Housing prices are increasing in Oslo and Bergen, but declining in Stavanger. Demand is favorable in St. Petersburg, but purchasing decisions take longer. Demand for housing is favorable in Copenhagen, mainly in the central areas.

MOST RECENT QUARTER, APRIL - JUNE 2015

HOUSING SALES AND CONSTRUCTION STARTS

A total of 1,277 (1,175) housing units were sold to private customers, and 195 (294) to the investor market. Housing sales to private customers mainly increased in St. Petersburg, Germany, Norway and Denmark. Sweden, St. Petersburg and Germany accounted for most housing starts. Overall, construction starts totaled 1,077 (1,274) for private customers and 326 (294) for the investor market. Sweden, Finland and Germany accounted for construction starts for the investor market.

NET SALES

Net sales were slightly lower year-on-year, mainly because fewer housing units were completed and recognized in profit in Denmark and Sweden. During the quarter, a total of 721 (757) housing units were recognized in profit for private customers, and 131 (40) for the investor market. The average price per housing unit was lower year-onyear, mainly because fewer housing units were recognized in profit in Denmark and Sweden.

OPERATING PROFIT

Earnings amounted to SEK 110 M (159). The results were lower year-on-year due to the impairment of SEK 48 M of a project in connection with the settlement of the operations in Stavanger, Norway.

CAPITAL EMPLOYED

Capital employed of SEK 11.2 billion is in line with the year-earlier period.

INTERIM PERIOD, JANUARY - JUNE 2015

HOUSING SALES AND CONSTRUCTION STARTS

A total of 2,292 (2,090) housing units were sold to private customers, and 322 (432) to the investor market. Housing sales to private customers increased in Sweden, Norway and Germany. Sales in Denmark were in line with the yearearlier period, while sales declined in Finland, St. Petersburg and the Baltic countries. During the first half of the year, construction commenced on a total of 1,665 (2,353) housing units for private customers, and 453 (405) for the investor market.

NET SALES

Net sales were higher year-on-year due to a higher-thanaverage price per unit for housing units handed over and recognized in profit for private customers, but also to higher sales of land. During the period, 1,192 (1,386) housing units for private customers and 328 (178) housing units for the investor market were recognized in profit.

OPERATING PROFIT

Earnings amounted to SEK 187 M (212). The results were lower year-on-year due to the impairment of SEK 48 M of a project in connection with the settlement of the operations in Stavanger, Norway during the second quarter.

CAPITAL EMPLOYED

Capital employed totaled SEK 11.2 billion, an increase of SEK 0.7 billion compared with the year-end 2014, attributable to more housing units in production.

QUARTERLY DATA

	2015	2014	2015	2014	Jul. 14-	2014
SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
NCC Housing
Orders received	3,099 3,099	2,928	5,347 5,347	5,611	12,254	12,518
Order backlog	18,309 18,309	17,044	18,309 18,309	17,044	18,309	16,878
Net sales	1,863 1,863	2,051	3,628 3,628	3,404	10,449	10,226
Operating profit/loss	110 110	159	187 187	212	924	949
Operating margin, %	5.9 5.9	7.8	5.2 5.2	6.2	8.8	9.3
Capital employed			11,243 11,243	11,213	11,243	10,557

The comparative figures are pro-forma with adjustments because housing production in Russia and the Baltic countries was transferred from NCC Construction Finland to NCC Housing.

HOUSING DEVELOPMENT

			Group
	Apr.-Jun.Apr.-Jun.		Jan.-Jun.		Jan.-Jun. Jan.-Dec.
	2015	2014	2015	2014	2014
Building rights, end of period		30,100 32,800	30,100	32,800	31,300
Of which development rights on options		9,700 11,400	9,700	11,400	9,800
Housing development to private customers
Profit-recognized housing units, during the period	721	757	1,192	1,386	3,661
Housing starts, during the period	1,077	1,274	1,665	2,353	4,503
Housing units sold, during the period	1,277	1,175	2,292	2,090	4,575
Housing units under construction, end of period	6,538	6,014	6,538	6,014	5,952
Sales rate units under construction, end of period % Reservation rate units under construction, end of	70	54	70	54	58
period %	8	8	8	8	12
Completion rate units under construction, end of
period %	53	50	53	50	45
Completed, not profit recognized housing units,
end of period 1)	312	501	312	501	438
Housing units for sale (ongoing and completed), at
end of period	2,174	3,150	2,174	3,150	2,812
Housing development to the investor market
Profit-recognized housing units, during the period	131	40	328	178	1,393
Housing starts, during the period	326	294	453	405	1,445
Housing units sold, during the period	195	294	322	432	1,472
Housing units under construction, end of period2)	1,901	1,600	1,901	1,600	1,735
Sales rate units under construction, end of period %	93	100	93	100	100
Completion rate units under construction, end of
period %	72	50	72	50	65
Completed, not profit recognized housing units,
end of period	0	0	0	0	0

1) Of the completed, not profit recognized housing units by the end of the period 106 (112) w here sold.

2) Of the total number of housing units under construction to the investor market, 1,901 (1,600),

808 (457) has already been profit-recognized and 1.093 (1.143) remains to be profit-recognized. A full table per market is available on ncc.se.

The diagram shows the estimated completion schedule for housing units for private customers and the investor market that are not yet recognized in profit. The curve shows the proportion of sold units. Sold units are recognized in profit on the handover date.

NCC Property Development

MARKET PERFORMANCE

In Sweden, demand in the leasing market was favorable, vacancy rates were low and the interest shown by investors was high. In Copenhagen, vacancy rates declined slightly but leasing levels are under pressure due to the high vacancy rates. Vacancy rates were stable in Oslo, but demand in the leasing market weakened slightly during the quarter. In Helsinki, demand in the leasing market was weak particularly in the former office portfolio. Leasing levels for new offices is increasing in prime locations.

MOST RECENT QUARTER, APRIL -JUNE 2015

PROPERTY PROJECTS

Three project sales were recognized in profit during the quarter: the Vallensbaek, CH Zenit 4.1 and CH Zenit 4.2 office projects in Denmark. Leases for 23,900 square meters (33,200) were signed during the quarter.

Two new projects were started during the quarter: the Aitio 2 Verdi office project in Finland and the Mölndal Galleria shopping mall in Sweden.

At the end of the quarter, 15 (16) projects were either ongoing or completed but not yet recognized in profit. The costs incurred in all projects totaled SEK 3.4 billion (3.0), corresponding to a completion rate of 57 (58) percent. The leasing rate was 64 percent (73). The operating net for the quarter was SEK 28 M (15).

NET SALES

Net sales were lower year-on-year and the projects recognized in profit in Denmark accounted for the highest proportion of sales. One project was recognized in profit in the year-earlier period.

OPERATING PROFIT

Operating profit amounted to SEK 53 M (40). During the quarter, three projects (one) were recognized in profit.

A small land sale, as well as earnings from previous sales also contributed to earnings. One project in Finland was recognized in profit in the year-earlier period.

CAPITAL EMPLOYED

During the quarter, capital employed rose SEK 0.2 billion to SEK 5.5 billion, mainly due to increased production in ongoing projects.

INTERIM PERIOD, JANUARY - JUNE 2015

PROPERTY PROJECTS

A total of four projects (five) were recognized in profit, all of them in Denmark. Leases for 34,700 square meters (51,100) were signed during the quarter.

NET SALES

Net sales amounted to SEK 982 M (1,317). The projects recognized in profit in Denmark accounted for the highest proportion of net sales during the period.

OPERATING PROFIT

Operating profit amounted to SEK 81 M (90). Four projects were recognized in profit during the period. Five projects were recognized in profit in the year-earlier period. Earnings from previous sales and sales of land also contributed to earnings. The operating net for the year was SEK 45 M (33).

CAPITAL EMPLOYED

Capital employed rose SEK 0.7 billion to SEK 5.5 billion since year-end.

QUARTERLY DATA

	2015 2015	2014	2015 2015	2014	Jul. 14-	2014
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
NCC Property Development
Net sales	511 511	579	982 982	1,317	2,791	3,125
Operating profit/loss	53 53	40	81	90	159	169
Capital employed			5,486 5,486	4,118	5,486	4,784

PROPERTY DEVELOPMENT PROJECTS AT JUNE 30, 2015 1)

Ongoing Property development projects

			Sold,
			estimated	Comple	Lettable	Letting
			recognition in	tion	area,	ratio,
Project	Type	Location	profit	ratio, %	sqm	%
Aitio 1 Vivaldi	Office	Helsinki		99	6,100	92
Aitio 2 Verdi	Office	Helsinki		42	5,000	63
Alberga D	Office	Espoo		87	5,300	20
Matinkylä 2)	Retail	Espoo		63	12,700	50
Total Finland				70 70	29,100 29,100	55
Hyllie	Office	Malmö		52	7,300	78
Hälsobrunnen 3)	Logistics	Upplands- Bro	Q4 2015	53	10,400	100
Mölndal Galleria	Retail	Mölndal	4)	0	24,200	28
The SCA House	Office	Mölndal	Q4 2016	36	24,400	100
Torsplan 2	Office	Stockholm		46	22,600	14
Ullevi Park 4	Office	Gothenburg	Q4 2015	94	20,300	100
Total Sweden				39 39	109,200 109,200	57
Total				47 47	138,300 138,300	56

Completed Property development projects

			Sold,
			estimated	Lettable	Letting
			recognition in	area,	ratio,
Project	Type	Location	profit	sqm	%
Kolding Retailpark	Retail	Kolding		4,600	71
Roskildevej	Retail	Taastrup		4,000	100
Viborg Retail II+III	Retail	Viborg		1,600	47
Total Denmark				10,200 10,200	79 79
Lysaker Polaris 1	Office	Olso	Q3 2015	19,800	100
Stavanger Business Park 1	Office	Stavanger		9,200	100
Total Norway				29,000 29,000	100 100
Total				39,200 39,200	97 97

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 eight previously sold and revenue recognized property projects, a maximum of approximately 100 MSEK.

2) The project covers approximately 25,000 square meters of leasable area and is implemented together with Citycon, a Finnish listed real estate company, in a jointly owned company. The data in the table refer to NCC's share of the project.

3) The project has been sold after the end of the quarter.

4) The project is operated by a project company jointly owned by NCC and Citycon, 50 per cent each. Citycon will acquire NCC's share when the building is completed and the agreed conditions are fulfilled.

Consolidated income statement

		2015 2015	2014	2015 2015	2014	Jul. 14-	2014
SEK M	Note 1	Apr.-Jun. Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
Net sales		14,152	13,479	25,360	23,311	58,916	56,867
Production costs	Note 2,3	-12,659	-12,018	-23,220	-21,256	-53,140	-51,176
Gross profit		1,493 1,493	1,460 1,460	2,140	2,054	5,776	5,691
Selling and administrative expenses	Note 2	-845	-787	-1,653	-1,542	-3,228	-3,117
Other operating income/expenses	Note 3	2	4	2	3	30	31
Operating profit/loss		649 649	677 677	489	515	2,578	2,604
Financial income		6	10	27	23	49	46
Financial expense		-114	-112	-229	-202	-443	-416
Net financial items		-108 -108	-102 -102	-202	-178	-394	-370
Profit/loss after financial items		541 541	576 576	287	336	2,185	2,234
Tax		-105	-125	-54	-72	-378	-396
Net profit/loss for the period		436 436	451 451	232	264	1,806	1,838
Attributable to:
NCC´s shareholders		433	447	230	262	1,803	1,835
Non-controlling interests		3	4	2	2	3	3
Net profit/loss for the period		436 436	451 451	232	264	1,806	1,838
Earnings per share
Before dilution
Net profit/loss for the period, SEK		4.02	4.14	2.14	2.43	16.72	17.01
After dilution
Net profit/loss for the period, SEK		4.02	4.14	2.14	2.43	16.72	17.01
Number of shares, millions
Total number of issued shares		108.4	108.4	108.4	108.4	108.4	108.4
Average number of shares outstanding before
dilution during the period		107.8	107.8	107.8	107.8	107.8	107.8
Average number of shares after dilution		107.8	107.8	107.8	107.8	107.8	107.8
Number of shares outstanding before dilution at the end of the period107.9			107.8	107.9	107.8	107.9	107.8

Consolidated statement of comprehensive income

	2015 2015	2014	2015 2015	2014	Jul. 14-	2014
SEK M	Note 1 Apr.-Jun. Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
Net profit/loss for the period	436 436	451 451	232	264 264	1,806 1,806	1,838
Items that have been recycled or should be recycled to net profit/loss for the period
Exchange differences on translating foreign operations	-30	81	-83	103	-48	138
Change in hedging/fair value reserve	13	-37	46	-48	9	-85
Cash flow hedges	22	-4	21	-22	-17	-60
Income tax relating to items that have been or should be recycled
to net profit/loss for the period	-8	9	-15	16	1	32
	-3	50	-32	50	-55	24
Items that cannot be recycled to net profit/loss for the period
Revaluation of defined benefit pension plans	119	-277	-142	-246	-393	-497
Income tax relating to items that cannot be recycled to
net profit/loss for the period	-26	61	31	54	86	109
	93 93	-216 -216	-111	-192 -192	-307 -307	-388
Other comprehensive income	90 90	-168 -168	-143	-142 -142	-362	-364
Total comprehensive income	526 526	284 284	89	121 121	1,444 1,444	1,474
Attributable to:
NCC´s shareholders	523	280	87	119	1,440	1,471
Non-controlling interests	3	4	2	2	3	3
Total comprehensive income	526 526	284 284	89	121 121	1,444 1,444	1,474

Consolidated balance sheet

		2015 2015	2014	2014
SEK M	Note 1	Jun. 30 30 0	Jun. 30	Dec. 31
ASSETS
Fixed assets
Goodwill		1,837	1,856	1,865
Other intangible assets		436	317	389
Owner-occupied properties		803	735	774
Machinery and equipment		2,503	2,545	2,487
Other long-term holdings of securities		228	249	208
Long-term receivables		361	257	434
Deferred tax assets		209	198	237
Total fixed assets		6,376 6,376	6,157 6,157	6,395
Current assets
Property projects	Note 4	5,313	5,115	5,059
Housing projects	Note 4	14,184	14,523	13,246
Materials and inventories		788	805	746
Tax receivables		396	219	35
Accounts receivable		7,560	8,006	7,178
Worked-up, non-invoiced revenues		1,911	1,680	1,066
Prepaid expenses and accrued income		1,145	1,604	1,415
Other receivables		1,292	780	1,013
Short-term investments1)		81	244	242
Cash and cash equivalents		648	1,180	2,592
Total current assets		33,319 33,319	34,156 34,156	32,592
TOTAL ASSETS		39,696 39,696	40,313 40,313	38,987
EQUITY
Share capital		867	867	867
Other capital contributions		1,844	1,844	1,844
Reserves		-214	-156	-182
Profit/loss brought forward, including current-year profit/loss		5,122	4,926	6,318
Shareholders´ equity		7,619 7,619	7,482 7,482	8,847
Non-controlling interests		19	19	20
Total shareholders´ equity		7,638 7,638	7,500 7,500	8,867
LIABILITIES
Long-term liabilities
Long-term interest-bearing liabilities		5,990	7,336	6,957
Other long-term liabilities		323	379	548
Provisions for pensions and similar obligations		749	356	585
Deferred tax liabilities		368	303	268
Other provisions		2,009	1,959	2,017
Total long-term liabilities		9,438 9,438	10,333 10,333	10,376
Current liabilities
Current interest-bearing liabilities		4,048	2,863	2,526
Accounts payable		5,201	4,145	3,960
Tax liabilities		80	45	117
Invoiced revenues not worked-up		4,968	4,988	4,408
Accrued expenses and prepaid income		3,374	3,462	3,952
Other current liabilities		4,949	6,977	4,782
Total current liabilities		22,620 22,620	22,480 22,480	19,745
Total liabilities		32,058 32,058	32,813 32,813	30,120
TOTAL SHAREHOLDERS´ EQUITY AND LIABILITIES		39,696 39,696	40,313 40,313	38,987
ASSETS PLEDGED		1,415 1,415	1,713	1,510
CONTINGENT LIABLITIES		2,401 2,401	3,331	2,037

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

	Condensed changes in shareholders'' equity, Group

		Jun. 30, 2015
			Total			Total
	Shareholders´Non-controlling			shareholders´ Shareholders´Non-controlling		shareholders´
SEK M	equity	interests	equity	equity	interests	equity
Opening balance, January 1st	8,847 8,847	20 20	8,867	8,658	17	8,675
Total comprehensive income	87	2	89	119	2	121
Acqusition of non-controlling interests	-6	-2	-8
Dividends 1)	-1,294		-1,294	-1,294		-1,294
Acquisition/sale of treasury shares	-18		-18
Performance based incentive program	3		3	-1		-1
Closing balance	7,619 7,619	19 19	7,638	7,482	19	7,500

1) The reported amount is the dividend resolved by the Shareholders Annual General Meeting. In accordance with the

decision of the Shareholders Annual General Meeting 2015, SEK 647 M has been paid on March 31, and the rest will be paid in October. If previous accounting policies for pensions under IAS 19 had been applied, the equity would have been SEK 1,727 M higher and net debt SEK 749 M lower at June 30th 2015.

Consolidated cash flow statement, condensed

	2015 2015	2014	2015 2015	2014	Jul. 14-	2014
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
OPERATING ACTIVITIES
Profit/loss after financial items	541	576	287	336	2,184	2,234
Adjustments for items not included in cash flow	42	-236	342	-186	934	406
Taxes paid	-113	-124	-285	-268	-385	-367
Cash flow from operating activities before changes in working
capital	471 471	215 215	343	-118	2,733	2,273
Cash flow from changes in working capital
Divestment of property projects	223	382	520	995	1,925	2,400
Gross investments in property projects	-452	-549	-902	-996	-2,161	-2,255
Divestment of housing projects	1,559	1,793	3,073	3,046	8,978	8,951
Gross investments in housing projects	-2,133	-2,132	-4,064	-4,369	-9,407	-9,712
Other changes in working capital	-492	-756	-621	-369	-565	-313
Cash flow from changes in working capital Cash flow from in capital	-1,295 -1,295	-1,263	-1,995 -1,995	-1,693 -1,693	-1,230	-928
Cash flow from operating activities	-824 -824	-1,048 -1,048	-1,652 -1,652	-1,811 -1,811	1,503	1,345
INVESTING ACTIVITIES
Sale of building and land		4	1	4	22	25
Increase (-) from investing activities	-255	-223	-426	-420	-802	-796
Cash flow from investing activities	-255 -255	-219 -219	-425 -425	-416 -416	-780	-771
CASH FLOW BEFORE FINANCING	-1,079 -1,079	-1,267 -1,267	-2,077 -2,077	-2,227 -2,227	723	574
FINANCING ACTIVITIES
Cash flow from financing activities	524	-211	151	-149	-1,215	-1,515
CASH FLOW DURING THE PERIOD	-555 -555	-1,477 -1,477	-1,927 -1,927	-2,376 -2,376	-492	-941
Cash and cash equivalents at beginning of period Cash and equivalents period	1,2 07	2,645	2,592	3,548	1,180	3,548
Effects of exchange rate changes on cash and cash equivalents	-4	12	-17	8	-39	-14
CASH AND CASH EQUIVALENTS AT END OF PERIOD CASH CASH PERIOD	648 648	1,180	648 648	1,180 1,180	648	2,592
Short-term investments due later than three months	81	244	81	244	81	242
Total liquid assets	729 729	1,424 1,424	729 729	1,424 1,424	729	2,833

Notes

NOTE 1. ACCOUNTING POLICIES

This interim report has been compiled pursuant to IAS 34 Interim Financial Reporting. The interim report has been prepared in accordance with the 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 dividend to shareholders will be recognized in connection with the Annual General Meeting's resolution and entered as a liability until payment.

In other respects, the interim report has been prepared pursuant to the same accounting policies and methods of calculation as the 2014 Annual Report (Note 1, pages 70- 76).

NOTE 2. DEPRECIATION/AMORTIZATION

	2015 2015	2014	2015 2015	2014	Jul. 14-	2014
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
Other intangible assets	-19	-8	-36	-16	-65	-44
Owner-occupied properties	-7	-6	-14	-12	-27	-26
Machinery and equipment	-163	-162	-319	-313	-645	-638
Total depreciation	-189 -189	-177 -177	-369	-340	-737	-708

NOTE 3. IMPAIRMENT LOSSES AND REVERSED IMPAIRMENT LOSSES

	2015 2015	2014	2015 2015	2014	Jul. 14-	2014
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
Property projects					-4	-4
Other intangible assets	-1		-1		-1
Total impairment expenses	-1		-1		-6	-5

Impairment losses in housing projects and property projects are recognized in operation profit/loss.

NOTE 4. SPECIFICATION OF PROPERTY PROJECTS AND HOUSING PROJECTS

	2015 2015	2014	2014
SEK M	Jun. 30 Jun. 30	Jun. 30	Dec. 31
Properties held for future development	1,922	2,070	2,064
Ongoing property projects	2,277	2,380	2,256
Completed property projects	1,115	665	740
Total property projects	5,313 5,313	5,115 5,115	5,059
Properties held for future development	4,620	5,349	4,872
Capitalized developing costs	1,125	1,329	1,177
Ongoing proprietary housing projects	7,713	6,546	6,234
Unsold completed housing units	725	1,299	964
Total housing projects	14,184 14,184	14,523 14,523	13,246

NOTE 5. SPECIFICATION OF NET INDEBTEDNESS

	2015 2015	2014	2014
SEK M	Jun. 30 Jun. 30	Jun. 30	Dec. 31
Long-term interest-bearing receivables	255	289	235
Current interest-bearing receivables	159	325	406
Cash and bank balances	648	1,180	2,592
Total interest-bearing receivables, cash and cash equivalents	1,062 1,062	1,795 1,795	3,232
Long-term interest-bearing liabilities	5,990	7,336	6,957
Pensions and similar obligations	749	356	585
Current interest-bearing liabilities	4,048	2,863	2,526
Total interest-bearing liabilities	10,787 10,787	10,555 10,555	10,068
Net indebtedness	9,725 9,725	8,760 8,760	6,836
whereof net debt in ongoing projects in Swedish tenant-owners'
associations and Finnish housing companies
Interest-bearing liabilities	3,097	2,151	2,056
Cash and bank balances	65	164	93
Net indebtedness	3,032	1,987	1,963

NOTE 6. SEGMENT REPORTING

SEK M		NCC Construction
							NCC		Other items
					NCC	NCC	Property	Segment	and
January - June 2015		Sweden Denmark		Finland Norway	Roads	Housing	Development	total	eliminations1)	Group
Net sales, external	9 519	2 093	2 098	2 857	4 218	3 628	948	25 360		25 360
Net sales, internal	1 699	246	475	212	305		34	2 970	-2 970
Net sales, total	11 218	2 339	2 573	3 068	4 523	3 628	982	28 330	-2 970	25 360
Operating profit	250	140	42	39	-140	187	81	599	-110	489
Net financial items										-202
Profit/loss after financial items										287
		NCC Construction
							NCC		Other items
					NCC	NCC	Property	Segment	and
April - June 2015		Sweden Denmark		Finland Norway	Roads	Housing	Development	total	eliminations 2)	Group
Net sales, external	5 203	1 073	1 115	1 438	2 965	1 863	494	14 152		14 152
Net sales, internal	910	130	235	79	253		17	1 625	-1 625
Net sales, total	6 114	1 204	1 350	1 517	3 218	1 863	511	15 777	-1 625	14 152
Operating profit	168	76	35	11	259	110	53	712	-63	649
Net financial items										-108
Profit/loss after financial items										541
		NCC Construction
							NCC		Other items
					NCC	NCC	Property	Segment	and
January - June 2014		Sweden Denmark		Finland Norway	Roads	Housing	Development	total	eliminations1)	Group
Net sales, external	8 366	1 391	1 769	2 843	4 255	3 403	1 283	23 311		23 311
Net sales, internal	973	455	1 164	242	234	1	34	3 102	-3 102
Net sales, total	9 340	1 846	2 933	3 085	4 489	3 404	1 317	26 413	-3 102	23 311
Operating profit	195	116	57	28	-134	212	90	562	-47	515
Net financial items										-178
Profit/loss after financial items										336
		NCC Construction
							NCC		Other items
					NCC	NCC	Property	Segment	and
April - June 2014		Sweden Denmark		Finland Norway	Roads	Housing	Development	total	eliminations 2)	Group
Net sales, external	4 616	725	985	1 463	3 079	2 050	562	13 479		13 479
Net sales, internal	529	238	689	124	192	1	17	1 790	-1 790
Net sales, total	5 145	963	1 674	1 587	3 271	2 051	579	15 269	-1 790	13 479
Operating profit	146	65	37	24	255	159	40	726	-49	677
Net financial items										-102
Profit/loss after financial items										576

1) The figures for the half year include among others NCC's head office, results from small subsidiaries and associated companies and remaining parts of NCC International Projects, totalling an expense of SEK 109 M (expense: 101). Eliminations of internal profits amount to an expense of SEK 26 M (expense: 14) and other Group adjustments, mainly consisting of differences of accounting policy between the segments and the Group (including pensions) amount to an income of SEK 20 M (income: 68).

2) The quarter includes among others NCC's head office, results from small subsidiaries and associated companies and remaining parts of NCC International Projects, totalling an expense of SEK 56 M (expense: 54). Furthermore elimination of internal profits are included, an expense of SEK 16 M (expense: 13) and other Group adjustments, mainly consisting of differences of accounting policy between the segments and the Group (including pensions), an income of SEK 10 M (income: 19).

The comparative figures are pro-forma with adjustments because housing production in Russia and the Baltic countries was transferred from NCC Construction Finland to NCC Housing.

NOTE 7. 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 the following three levels. No transfers have been made between the levels during the period.

In level 1, measurement is in accordance with prices quoted on an active market for the same instruments. Derivatives in level 2 comprise currency-forward contracts, cross-currency swaps and interest-rate swaps used for hedging purposes. Fair-value measurement for currencyforward contracts and cross-currency swaps is based on published forward rates in an active market. The measurement of interest-rate swaps is based on forward interest rates prepared based on observable yield curves. NCC has no financial instruments in level 3.

SEK M	Jun.	Jun. 30, 2015 2015		Jun. 30, 2014			Dec. 31, 2014
	Level 1	Level 2	Total	Level 1	Level 2	Total	Level 1	Level 2	Total
Financial assets measured at fair value through profit
and loss
Securities held for trading	10		10	168		168	115		115
Derivative instruments		334	334		57	57		417	417
Derivative instruments used for hedge accounting		30	30		13	13		27	27
Total assets	10	364	374	168	70	238	115	444	559
Financial liabilities measured at fair value through profit
and loss
Derivative instruments		36	36		135	135		118	118
Derivative instruments used for hedge accounting		91	91		92	92		141	141
Total liabilities	0	127	127	0	227	227	0	259	259

In the tables below, disclosures are made concerning fair value for the financial instruments that are not recognized at fair value.

SEK M	Jun. 30, 2015 2015		Jun. 30, 2014		Dec. 31, 2014
	Carrying	Fair	Carrying	Fair	Carrying	Fair
	amount	value	amount	value	amount	value
Long-term holdings of securities held to maturity	137	140	169	172	115	119
Short-term investments held to maturity	70	71	76	77	127	128
Long-term interest-bearing liabilities	5,990	6,052	7,336	7,446	6,957	7,059
Current interest-bearing liabilities	4,048	4,076	2,863	2,864	2,526	2,531

For financial instruments recognized at amortized cost, accounts receivables, other receivables, cash and cash equivalents, accounts payable and other interest-free liabilities, the fair value is deemed to match the carrying amount.

Parent Company

MOST RECENT QUARTER, APRIL – JUNE 2015

The Parent Company comprises the operations in NCC AB, as well as NCC Construction Sverige AB and NCC Boende AB, which conduct their own operations on a commission basis on behalf of NCC AB. Profit recognition of projects for the quarter generated higher earnings than in the year-earlier period. Invoicing for the Parent Company amounted to SEK 5,511 M (6,730). Profit after financial items totaled SEK 529 M (331). Dividends from the subsidiaries, which were anticipated in the first quarter, were received during the second quarter of the year.

INTERIM PERIOD, JANUARY – JUNE 2015

Invoicing for the Parent Company amounted to SEK 11,809 M (12,254). Profit after financial items amounted to SEK 1,269 M (1,178). In the Parent Company, profit is recognized when projects are completed.

Dividend to shareholders will be paid on two occasions. The first payment of SEK 647 M (647) was made on March 31. The second will be made in October. There was a redistribution of cash and cash equivalents between shortterm investments and bank balances due to the prevailing interest-rate situation.

The average number of employees was 6,030 (5,953).

Parent Company income statement

		2015 2015	2014	2015 2015	2014	Jul. 14-	2014
SEK M	Note 1	Apr.-Jun. Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
Net sales		5,511	6,370	11,809	12,254	19,169	19,614
Production costs		-4,683	-5,704	-10,635	-11,121	-17,242	-17,728
Gross profit		828 828 -403.861	666 666 -376.364	1,174 -784.409	1,133 -728.97	1,927 -1359.381	1,886 -1303.942
Selling and administrative expenses		-404	-376	-784	-729	-1,359	-1,304
Operating profit		424 424	290 290	390	404	568	582
Result from financial investment
Result from participations in Group companies		131	101	908	880	990	962
Result from participations in associated companies			-3			22	22
Result from other financial fixed assets						1	1
Result from financial current assets		5	27	18	58	50	89
Interest expense and similar items		-31	-83	-48	-164	-202	-318
Result after financial items		529 529	331 331	1,269	1,178	1,429 683.625	1,338 683.625
Appropriations		-72	-85	-72	-37	-280	-245
Tax on net profit for the period		457	246	1,197	1,142	1,833	1,777
Net profit for the period		740 740	895 895	740	895	1,621	1,777

Parent Company statement of comprehensive income

		2015 2015	2014	2015 2015	2014	Jul. 14-	2014
SEK M	Note 1	Apr.-Jun. Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun.-15	Jan.-Dec.
Net profit for the period		457	246	1,197	1,142	1,833	1,777
Total comprehensive income during the year Total comprehensive income during the year		457 457	246	1,197	1,142	1,833	1,777

Parent Company balance sheet, condensed

		2015 2015	2014	2014
SEK M	Note 1	Jun. 30 30	Jun. 30	Dec. 31
ASSETS
Intangible fixed assets		239	120	175
Total intangible fixed assets		239 239	120 120	175
Tangible fixed assets		90	89	103
Financial fixed assets		6,470	6,465	6,422
Total fixed assets		6,799 6,799	6,674 6,674	6,700
Housing projects		90	351	225
Materials and inventories		60	51	59
Current receivables		4,847	5,101	5,791
Short term investments		400	7,300	6,400
Cash and bank balances		9,396	929	1,938
Total current assets		14,793 14,793	13,732 13,732	14,412
TOTAL ASSETS		21,592 21,592	20,405 20,405	21,112
SHAREHOLDERS´ EQUITY AND LIABILITIES
Shareholders´ equity		7,819	7,278	7,931
Untaxed reserves		348	392	348
Provisions		532	603	617
Long term liabilities		2,838	2,774	2,790
Current liabilities		10,054	9,357	9,425
TOTAL SHAREHOLDERS´ EQUITY AND LIABILITIES		21,592 21,592	20,405 20,405	21,112
Contingent liabilities		23,853 23,853	26,147 26,147	23,833

Notes to the Parent Company's income statement and balance sheet

NOTE 1. ACCOUNTING POLICIES

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 2014 Annual Report (Note 1, pages 70-76).

Significant risks and uncertainties

GROUP

An account of the risks to which NCC may be exposed is presented in the 2014 Annual Report (pages 56-58). This description remains relevant.

PARENT COMPANY

Significant risks and uncertainties for the Parent Company are identical to those of the Group.

Related-party transactions

The companies related to the Parent Company are the Nordstjernan Group, the Axel Johnson Group, the FastPartner Group, NCC's subsidiaries, as well as associated companies and joint ventures. The Parent Company's related-party transactions were of a production character. During the April-June quarter, related-company sales amounted to SEK 27 M (5) and purchases to SEK 131 M (99). During the January-June interim period, sales amounted to SEK 28 M (6) and purchases to SEK 242 M (191). The transactions were conducted on normal market terms.

Information to shareholders

REPURCHASE OF SHARES

NCC AB holds 568,054 Series B treasury shares to meet its obligations pursuant to long-term incentive programs.

Other significant events

MAJOR ORDERS IN THE QUARTER

NCC is to build one of Norway's most sustainable schools for Undervisningsbygg KF in Oslo. Brynsengfaret School will be a passive house building. The order value is SEK 270 M.

NCC is to refurbish and expand the Harju Campus in Finland on behalf of the Jyväskylä Educational Consortium. The order value is SEK 270 M.

The Danish pension fund, Pension Danmark, has commissioned NCC to build housing units along Islands Brygge in Copenhagen. The order value is SEK 360 M.

The Swedish Transport Administration has commissioned NCC to build a six-kilometer stretch of 2+1 road and highway south of Kalmar. The order value is SEK 260 M.

MAJOR FRAMEWORK/PARTNERING AGREEMENTS IN THE QUARTER

Västfastigheter has commissioned NCC to build a new, modern children's hospital directly adjacent to the Queen Silvia Children's Hospital in Gothenburg. The total order value is an estimated SEK 850 M.

NCC is to implement an energy-efficient refurbishment of Million Program apartments.

NCC and the municipal housing company Stockholmshem are to jointly create secure and attractive public utility housing in the Stockholm area. The upgrade is also aimed at halving the energy consumption of the rental apartments. The estimated value of the framework agreement is SEK 500 M, distributed over three years.

Locum has commissioned NCC to expand the Södersjukhuset Hospital in Stockholm by adding one new building for treatment, and one for maintenance and operations. The order value is about SEK 1 billion and will be registered in three stages.

NCC and Sörmland County Council have signed an agreement to refurbish and expand three hospitals in Södermanland. The total potential order volume is about SEK 3 billion. The partnership is to commence immediately with a planning phase. The modernization of the hospitals in Eskilstuna, Katrineholm and Nyköping will be completed within eight years.

MAJOR PROPERTY SALES IN THE QUARTER

NCC divested a housing project in Frankfurt am Main, Germany, to a German investor for approximately SEK 150 million. The project comprises three properties with a total of 64 rental units.

ASPHALT CASE IN NORWAY

The Norwegian Court of Appeal ruled to raise the charge imposed on NCC in the asphalt case from NOK 40 M to NOK 150 M. According to NCC, ordering the company to pay such a high charge in the case is unreasonable. It is quite clear that it was a former employee who engaged in illegal cooperation with a competitor. The conduct is disloyal, and violates all instructions and guidelines for the company's business activities. NCC has until mid-September to appeal the decision to the Supreme Court of Norway.

Reporting occasions in 2015

Interim report, Jan-Sep 2015	November 6, 2015
Year-end report 2015	January 28, 2016

Signatures

Solna, July 17, 2015

The Board of Directors and the CEO provide their assurance that the interim report gives a true and fair view of the Parent Company's and the Group's operations, position and results and describes the significant risks and uncertainties facing the Parent Company and the companies included in the Group.

Tomas Billing Chairman of the Board Viveca Ax:son Johnson Board member

Carina Edblad Board member

Ulla Litzén Board member

Olof Johansson Board member

Sven-Olof Johansson Board member

Christoph Vitzthum Board member

Karl-Johan Andersson Board member Employee representative

Lars Bergqvist Board member Employee representative

Karl G Sivertsson Board member Employee representative

Peter Wågström Verkställande direktör

This report is unaudited.

Reporting by geographical market

January - June

January - June									Average numbers
	Orders received		Order backlog		Net sales		EBIT		of employees		Capital employed
SEK M SEK M	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	2015	201 4
Sweden	15,985	16,687	28,521	26,322	13,245	11,798	297	368	8,538	8,276	9,244	7,360
Denmark	3,627	3,862	8,200	7,939	3,859	2,816	123	47	2,160	2,040	3,246	4,133
Finland	3,922	3,573	6,370	7,768	3,146	3,812	50	48	2,190	2,549	3,352	3,064
Norway	3,860	4,196	8,658	8,588	3,957	4,037	-57	-7	2,408	2,428	4,100	3,801
Germany	1,369	1,510	4,528	4,322	942	569	65	4	732	711	1,374	1,312
St. Petersburg	311	599	2,008	1,592	153	163	6	55	408	401	941	1,295
The Baltic countries	47	100	97	148	57	116	4	2	54	84	523	514

Quarterly review

	2015	2015	2014	2014	2014	2014	2013	2013	2013
		Apr.-Jun. Jan.-Mar. Oct.-Dec.		Jul.-Sep.		Apr.-Jun. Jan.-Mar. Oct.-Dec.		Jul.-Sep.	Apr.-Jun.
Financial statements, SEK M
Net sales	14,152	11,208	18,760	14,796	13,479	9,832	21,073	13,129	13,535
Operating profit/loss	649	-161	1,101	989	677	-162	1,547	823	526
Profit/loss after net financial items	541	-254	1,017	881	576	-239	1,472	748	457
Profit/loss for the period	433	-202	877	695	447	-185	1,229	611	362
Cash flow, SEK M
Cash flow from operating activities	-824	-828	3,603	-447	-1,048	-763	4,523	-43	-1,191
Cash flow from investing activities	-255	-170	-175	-180	-219	-197	-283	-185	-211
Cash flow before financing	-1,079	-998	3,428	-627	-1,267	-960	4,240	-227	-1,402
Cash flow from financing activities	524	-373	-1,610	244	-211	61	-2,118	460	812
Net debt	9,725	8,754	6,836	9,823	8,760	6,572	5,656	9,893	9,722
Order status, SEK M
Orders received	15,754	13,368	18,469	12,383	17,303	13,223	14,363	12,160	17,798
Order backlog	58,380	57,235	54,777	54,609	56,657	50,798	47,638	51,065	52,079
Personnel
Average number of employees	16,490	15,699	17,669	17,093	16,489	15,245	18,360	17,274	16,706

Summary of key figures

	2015	2014	Jul. 14-	Jul. 13-	2014	2013	20126)	2012	2011
	Apr.-Jun.	Apr.-Jun.	Jun.-15	Jun.-14	Jan.-Dec.	Jan.-Dec.	Jan.-Dec.	Jan.-Dec.	Jan.-Dec.
Profitability ratios
Return on shareholders equity, % 1)	23	27	23	27	22	26	28	23	17
Return on capital employed, % 1)	14	16	14	16	14	15	17	15	16
Financial ratios at period-end
Interest-coverage ratio, % 1)	5.9	7.4	5.9	7.4	6.4	7.8	7.5	7.0	7.4
Equity/asset ratio, %	19	19	19	19	23	22	20	23	25
Interest bearing liabilities/total assets, %	27	26	27	26	26	25	26	24	17
Net debt, SEK M	9,725	8,760	9,725	8,760	6,836	5,656	6,467	6,061	3,960
Debt/equity ratio, times	1.3	1.2	1.3	1.2	0.8	0.7	0.8	0.7	0.5
Capital employed at period end, SEK M	18,425	18,056	18,425	18,056	18,935	18,345	17,285	18,241	13,739
Capital employed, average	18,427	18,402	18,427	18,402	18,531	18,005	15,755	16,632	13,101
Capital turnover rate, times1)	3.2	3.1	3.2	3.1	3.1	3.2	3.6	3.4	4.0
Share of risk-bearing capital, %	20	19	20	19	23	23	21	25	27
Closing interest rate, % 2)	2.7	3.2	2.7	3.2	2.8	3.3	3.6	3.6	4.2
Average period of fixed interest, years 2)	0.9	1.1	0.9	1.1	1.1	1.2	1.1	1.1	0.8
Average interest rate, % 3)	1.5	2.4	1.5	2.4	1.8	2.7	2.4	2.4	2.7
Average period of fixed interest, years 3)	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1
Per share data
Profit/loss after tax, before dilution, SEK	4.02	4.14	16.72	19.49	17.01	18.40	17.62	17.51	12.08
Profit/loss after tax, after dilution, SEK	4.02	4.14	16.72	19.49	17.01	18.40	17.62	17.51	12.08
Cash flow from operating activities, before dilution, SEK	-7.65	-9.71	13.94	24.76	12.47	23.46	-0.24	-0.24	-14.27
Cash flow from operating activities, after dilution, SEK	-10.01	-11.74	6.70	16.56	5.32	15.40	-8.61	-8.61	-22.17
P/E ratio 1)	15	12	15	12	15	11	8	8	10
Dividend, ordinary, SEK 6)					12.00	12.00	10.00	10.00	10.00
Dividend yield, %					4.9	5.7	7.3	7.3	8.3
Shareholders' equity before dilution, SEK	70.63	69.37	70.63	69.37	82.04	80.24	70.58	82.97	76.41
Shareholders' equity after dilution, SEK	70.63	69.37	70.63	69.37	82.04	80.24	70.58	82.97	76.41
Share price/shareholders' equity, %	358	332	358	332	301	262	193	164	158
Share price at period-end, NCC B, SEK	253.10	230.10	253.10	230.10	246.80	209.90	136.20	136.20	121.00
Number of shares, millions
Total number of issued shares 4)	108.4	108.4	108.4	108.4	108.4	108.4	108.4	108.4	108.4
Treasury shares at period-end	0.6	0.6	0.6	0.6	0.6	0.6	0.4	0.4	0.0
Total number of shares outstanding at period-end before dilution	107.9	107.8	107.9	107.8	107.8	107.8	108.0	108.0	108.4
Average number of shares outstanding before dilution during the period	107.8	107.8	107.8	107.8	107.8	107.9	108.2	108.2	108.4
Market capitalization before dilution, SEK M	27,221	24,796	27,221	24,796	26,574	22,625	14,706	14,706	13,136

Financial objectives and dividend	2015	2014	2013	20126)	2012	2011	20105)	2009	20097)
Return on shareholders equity, % 5)		22	26	28	23	17	20	25	18
Debt/equity ratio, times 5)		0.8	0.7	0.8	0.7	0.5	0.1	0.5	0.1
Dividend, ordinary, SEK		12.00	12.00	10,00	10.00	10.00	10.00	6.00	6.00

1) Calculations are based on a 12 month average.

2) Excluding liabilities pertaining to Swedish tenant-owners' associations and Finnish housing companies and pensions obligations in accordance with IAS 19.

3) Liabilities pertaining to Swedish tenant-owners' association and Finnish housing companies.

4) All shares issued by NCC are common shares.

5) New objective as of 2010: Debt/equity ratio < 1.5. Previous objective: <1.0. Return on shareholders equity after tax, 20%.

6) The amounts are adjusted for change in accounting policy regarding IAS 19.

7) The column is not recalculated in accordance to IFRIC 15.

For definitions of key figuers, see p. 24 and Annual Report 2014, p. 121.

NCC in brief

VISION

NCC's vision is to renew our industry and provide superior sustainable solutions.

BUSINESS CONCEPT – RESPONSIBLE ENTERPRISE NCC develops and builds future environments for working, living and communication. Supported by its values, NCC and its customers jointly identify needsbased, cost-effective and high-quality solutions that generate added value for all of NCC's stakeholders and contribute to sustainable social development.

OBJECTIVE

NCC's overriding objective is to create value for its customers and shareholders. NCC aims to be a leading player in the markets in which it is active, to offer sustainable solutions and to be the customer's first choice.

FINANCIAL OBJECTIVES AND DIVIDEND POLICY

NCC aims to generate a healthy return to shareholders under financial stability. The return on equity after tax shall amount to 20 percent. The level for the return target is based on the margins that the various parts of the Group are expected to generate on a sustainable basis, and on capital requirements in relation to the prevailing business focus.

To ensure that the return target is not reached by taking financial risks, net indebtedness, defined as interestbearing liabilities less cash and cash equivalents and

interest-bearing receivables, must never exceed 1.5 times shareholders' equity during any given quarter.

NCC's dividend policy is to distribute at least half of aftertax profit for the year to the shareholders. The aim of the policy is to generate a healthy return for NCC's shareholders and to provide NCC with the potential to invest in its operations and thus ensure that future growth can be created while maintaining financial stability.

ORGANIZATION

NCC conducts integrated construction and development operations in the Nordic region, Germany, Estonia, Latvia and St. Petersburg. The company has three businesses: industrial, construction and civil engineering, as well as development. These businesses generate both operational and financial synergies. The company's operations are organized in seven business areas.

STRATEGY 2012–2015

NCC aims to achieve profitable growth and be a leading player in the markets in which it is active. Being a leading player entails being among the top three companies in the industry in terms of profitability and volume. Three markets and areas are prioritized: growth in Norway in all business areas, establishing a presence in the civil engineering market in Finland and expansion of the housing development business in all markets. Growth targets have been established for NCC's various operations during the strategy period.

NCC AB
Industrial			Development
NCC Roads	NCC Construction Sweden	NCC Construction Denmark	NCC Construction Finland	NCC Construction Norway	NCC Housing	NCC Property Development
Sweden Denmark Finland Norway St. Petersburg					Sweden Denmark Finland Norway Germany Estonia Latvia St. Petersburg	Sweden Denmark Finland Norway

Contact information

Chief Financial Officer Ann-Sofie Danielsson Tel. +46 (0)70-674 07 20

Senior Vice President Corporate Communications Ann Lindell Saeby Tel. +46 (0)76-899 98 48

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

Information meeting

An information meeting with integrated web and telephone conferencing will be held on July 17 at 10:00 a.m. at Klara Strand, Klarabergsviadukten 90, Room: Sankta Clara. The presentation will be held in English. To participate in this teleconference, call +46 (0)8-519 993 55 (SE), +44 203194 05 50 (UK) or +1 855 269 26 05 (US), five minutes prior to the start of the conference. State "NCC".

In its capacity as issuer, NCC AB is releasing the information in this interim report pursuant to Chapter 17 of the Swedish Securities Market Act (2007:528). The information was submitted to the media for publication on Friday July 17, at 8:00 a.m.

Definitions

INDUSTRY-SPECIFIC GLOSSARY

Construction costs: The cost of constructing a building, including building accessories, utility-connection fees, other contractor-related costs and VAT. Construction costs do not include the cost of land.

Required yield: The yield required by purchasers in connection with acquisitions of property and housing projects. Operating revenue less operating and maintenance expenses divided by the investment value, also called yield.

Proprietary project: When NCC, for its own development purposes, acquires land, designs a project, conducts construction work and then sells the project. Pertains to both housing projects and commercial property projects.

Leasing rate: The percentage of anticipated rental revenues that corresponds to signed leases (also called leasing rate based on revenues).

FINANCIAL KEY FIGURES

Return on equity: Net profit for the year according to the income statement excluding non-controlling interests, as a percentage of average shareholders' equity.

Return on capital employed: Profit after financial items including results from participations in associated companies following the reversal of interest expense in relation to average capital employed.

Dividend yield: The dividend as a percentage of the market price at year-end.

Net indebtedness: Interest-bearing liabilities and provisions less financial assets including cash and cash equivalents.

Net sales: The net sales of construction operations are recognized in accordance with the percentage-ofcompletion principle. These revenues are recognized in pace with the gradual completion of construction projects within the company. For NCC Housing, net sales are recognized when the housing unit is transferred to the end customer. Property sales are recognized on the date on which significant risks and benefits are transferred to the buyer, which normally coincides with the transfer of ownership. In the Parent Company, net sales correspond to recognized sales from completed projects.

Orders received: Value of received projects and changes in existing projects during the period concerned. Proprietary projects for sale, if a decision to initiate the assignment has been taken, are also included among assignments received, as are finished properties included in inventory.

Order backlog: Period-end value of the remaining nonworked-up project revenues for projects received, including proprietary projects for sale that have not been completed.

Capital employed: Total assets less interest-free liabilities including deferred tax liabilities. Average capital employed is calculated as the average of the balances per quarter.

Rounding-off differences may arise in all tables.