NCC Group

Annual Report • Jan 30, 2014

Year-end report

January 1 – December 31, 2013

October 1 – December 31, 2013

• Orders received: SEK 14,363 M (15,423)
• Net sales SEK 21,073 M (19,069)
• Profit after financial items SEK 1,472 M (1,258)
• Profit after tax for the period SEK 1,231 M (1,130)
• Earnings per share: SEK 11,39 (10.43)

January 1 – December 31, 2013

• Orders received: SEK 56,979 M (55,759)
• Net sales: SEK 57,823 M (57,227)
• Profit after financial items SEK 2,400 M (2,277)
• Profit after tax for the period SEK 1,989 M (1,910)
• Earnings per share: SEK 18.40 (17.62)
• The Board of Directors proposes a dividend for 2013 of SEK 12.00 (10.00) per share, divided between two payment occasions (see page 21)

	2013 2013	2012	2013 2013	2012
SEK M	Oct.-Dec. Oct.-Dec.	Oct.-Dec.	Jan.-Dec.Jan.-Dec. Jan.-Dec.	Jan.-Dec.
Orders received	14,363 14,363	15,423	56,979 56,979	55,759
Net sales	21,073 21,073	19,069	57,823 57,823	57,227
Operating profit/loss	1,547 1,547	1,332	2,679 2,679	2,519
Profit/loss after financial items	1,472 1,472	1,258	2,400 2,400	2,277
Net profit/loss for the period	1,231 1,231	1,130	1,989 1,989	1,910
Profit/loss per share after dilution, SEK	11.39 11.39	10.43	18.40 18.40	17.62
Cashflow before financing	4,240 4,240	2,981	1,661 1,661	-932
Return on shareholders´ equity after tax, %			26	28
Debt/equity ratio, times	0.7 0.7	0.8	0.7 0.7	0.8
Net indebtedness	5,656 5,656	6,467	5,656 5,656	6,467

Comparative figures have been recalculated to comply with a new accounting policy according to IAS 19, refer to page 15.

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 22 Key figures 23 NCC in brief 24

Comments from CEO Peter Wågström

Once again, we have ended the fiscal year on a strong note. NCC's results for the fourth quarter were the best ever. Profit after financial items increased to SEK 1,472 M (1,258), due largely to excellent results from our property development operations. Cash flow for the fourth quarter was very strong, resulting in lower net indebtedness than in the preceding year.

Profit after tax for 2013 was SEK 1,989 M (1,910). The return on shareholders' equity was 26 percent, thus exceeding our financial target of 20 percent.

SLOW RECOVERY IN CONSTRUCTION MARKET

Although the market strengthened during the second half of 2013, the recovery was not as strong as many had hoped. My view of the market remains the same and I believe that the Nordic construction market will grow in 2014.

Orders received in our construction operations declined significantly in the fourth quarter, primarily in Sweden. The Swedish construction market is relatively stable, but recovery is slow and we prefer to maintain healthy profitability rather than volume. The decrease in orders received entails that we are entering 2014 with a slightly lower order backlog.

I am not satisfied with the margin in the construction operations. In Denmark, we have demonstrated that earnings can be generated even in a tough market, but margins must increase in the other markets.

HIGH LEVEL OF ACTIVITY IN INDUSTRIAL OPERATIONS Thanks to mild weather, we were able to continue the activities of our industrial operations longer than normal and we also sold more asphalt. However, due to losses in Road Services, its earnings were somewhat lower in the fourth quarter, year-on-year. From a full-year perspective, our industrial operations developed in line with the preceding year, with volumes slightly lower than anticipated but higher profitability.

STRONG HOUSING SALES

Housing sales remained strong in the fourth quarter and for the full-year. We sold 4,876 housing units to private individuals and investors, a rise of about 500 year-on-year.

Earnings from the housing development business were lower during both the quarter and the full-year. Profitability in projects matched that of the preceding year and we have initiated a number of actions to increase the return in the future. This includes the divestment of nonpriority land during the year for SEK 700 M, which had a negative impact of slightly more than SEK 40 M on earnings.

PROFIT AFTER FINANCIAL ITEMS, SEK M

POSITIVE RESULTS FOR PROPERTY DEVELOPMENT OPERATIONS

It was an intensive quarter for the property development operations, which delivered and profit-recognized eight projects. In addition, leasing was better year-on-year and one office project was sold, which will be recognized in profit later. Thus it was a healthy quarter and a good year. The focus is now on starting new projects.

GROWTH WITH PROFITABILITY

Focusing on the right business generated results in 2013. A tough market meant that we focused on continued efficiency enhancement of the operations, securing our earnings, making the "right" deals and taking the "right" risks. NCC will continue to grow – but we will grow with profitability.

Peter Wågström, President and CEO Solna, January 30, 2014

Group performance

MOST RECENT QUARTER, OCTOBER – DECEMBER 2013

ORDERS RECEIVED AND ORDER BACKLOG

Orders received totaled SEK 14,363 M (15,423). NCC Construction Norway reported healthy orders received primarily in the civil engineering and other buildings segments. Orders received were lower for NCC Construction Sweden, mainly in the other buildings segment. Fewer housing starts led to lower orders received for NCC Housing. Changes in exchange rates had a negative impact of SEK 98 M on orders received compared with the year-earlier period. The Group's order backlog declined SEK 3,427 M year-on-year to SEK 47,638 M. Changes in exchange rates had a positive impact of SEK 374 M on the order backlog during the quarter.

NET SALES

Net sales increased year-on-year to SEK 21,073 M (19,069). The increase was primarily attributable to more projects being recognized in profit in NCC Property Development. Sales declined in NCC Construction Sweden. Changes in exchange rates had a negative impact of SEK 192 M on sales, compared with the year-earlier period.

EARNINGS

NCC's operating profit amounted to SEK 1,547 M (1,332). The earnings improvement was due primarily to NCC Property Development profit-recognizing additional project sales. Earnings for NCC Construction Norway were positively impacted by higher production, combined with a number of positive adjustments of project forecasts, while a decline in volume for NCC Construction Sweden counteracted part of the earnings improvement.

CASH FLOW

Cash flow from operating activities in the quarter was positive, due to payments received for the sale of housing and property projects. Sales of property projects increased year-on-year, while sales of housing projects remained at the same level.

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, which was also the case in 2013.

ORDER BACKLOG

NET INDEBTEDNESS

Net indebtedness (interest-bearing liabilities less cash and cash equivalents less interest-bearing receivables) at December 31 amounted to SEK 5,656 M (6,467), refer also to Note 5, Specification of net indebtedness, and was considerably lower than at September 30, 2013 when it was SEK 9,893 M. The average maturity period for interestbearing liabilities, excluding loans in Finnish housing companies and Swedish tenant-owner associations, as well as pension commitments according to IAS 19, was 36 (40) months at the end of the quarter. NCC's unutilized committed lines of credit at the end of the quarter totaled SEK 3.9 billion (3.8), with an average remaining maturity of 33 (43) months; refer also to Note 5, Specification of net indebtedness.

FULL-YEAR PERIOD, JANUARY – DECEMBER 2013

ORDERS RECEIVED AND ORDER BACKLOG

Orders received amounted to SEK 56,979 M (55,759). The year-on-year increase was mainly attributable to a higher number of starts for housing property projects but also to more projects in the other buildings segment. Changes in exchange rates had a negative impact of SEK 714 M on orders received, compared with the year-earlier period. The order backlog has increased since the year-earlier period and amounted to SEK 47,638 M at the end of the period. Changes in exchange rates had an adverse impact of SEK 428 M on the order backlog.

NET SALES

Net sales totaled SEK 57,823 M (57,227). Higher sales mainly in NCC Property Development and NCC Construction Norway were counteracted by lower sales in NCC Construction Sweden. Changes in exchange rates had a negative impact of SEK 668 M on sales, compared with the year-earlier period.

EARNINGS

NCC's operating profit amounted to SEK 2,679 M (2,519). Higher earnings for NCC Property Development offset the lower earnings in NCC's Construction units in Sweden and

NET INDEBTEDNESS

Norway, and in NCC Housing and NCC Roads. Net financial items declined to an expense of SEK 279 M (expense: 241) due to higher average net indebtedness for the year. The effective tax rate was 17 (16) percent.

CASH FLOW

Cash flow from operating activities in the quarter was very positive, SEK 2,532 M (neg: 26), thanks to the sale of housing and property projects. Capital tied up in working capital was lower year-on-year, due to higher interest-free financing. Investments in housing projects during the year were lower than in the preceding year – in Sweden due to few starts early in the year and in St. Petersburg due to fewer land purchases.

NET INDEBTEDNESS

Net indebtedness (interest-bearing liabilities less cash and cash equivalents less interest-bearing receivables) declined SEK 811 M to SEK 5,656 M (6,467) at December 31; refer also to Note 5, Specification of net indebtedness.

	2013 2013	2012	2013 2013	2012
SEK M	Oct.-Dec. Oct.-Dec.	Oct.-Dec.	Jan.-Dec.Jan.-Dec. Jan.-Dec.	Jan.-Dec.
Net indebtedness, opening balance	-9,893 -9,893	-9,430 -9,430	-6,467	-4,274
Cash flow before financing	4,240	2,981	1,661	-932
Acquisition/Sale of treasury shares			-28	-56
Change of provisions for pensions	29	-47	268	-93
Dividend			-1,080	-1,084
Other changes in net indebtedness	-32	30	-10	-29
Net indebtedness, closing balance	-5,656 -5,656	-6,467 -6,467	-5,656	-6,467

Comparative figures have been recalculated to comply with a new accounting policy according to IAS 19, refer to page 15.

ORDERS RECEIVED AND ORDER BACKLOG

		Orders received			Order backlog
	2013 2013	2012	2013 2013	2012	2013	2012
SEK M	Oct.-Dec. Oct.-Dec.	Oct.-Dec.	Jan.-Dec. Jan.-Dec. Jan.-Dec.	Jan.-Dec.	Dec. 31 3131	Dec. 31
NCC Construction Sweden	5,205	6,767	20,348	21,483	16,211	17,378
NCC Construction Denmark	1,370	1,458	4,929	3,288	4,447	2,924
NCC Construction Finland	1,945	1,919	6,491	6,576	5,630	5,667
NCC Construction Norway	1,626	1,053	7,098	8,086	6,364	7,265
NCC Roads	3,001	2,836	12,311	11,807	4,598	4,250
NCC Housing	3,247	3,455	10,921	9,380	14,200	11,932
Total	16,395 16,395	17,489 17,489	62,097	60,618	51,450	49,415
Other items and eliminations	-2,032	-2,066	-5,118	-4,859	-3,812	-3,582
Group	14,363 14,363	15,423 15,423	56,979	55,759	47,638	45,833
of which
proprietary housing projects to private customers	2,681	2,516	9,029	7,289	12,300	10,434
proprietary property development projects	203	116	2,309	1,644	2,374	2,520

NET SALES AND OPERATING PROFIT

	Net sales					Operating profit
	2013 2013	2012	2013 2013	2012	2013	2012	2013	2012
SEK M	Oct.-Dec. Oct.-Dec.	Oct.-Dec.	Jan.-Dec. Jan.-Dec. Jan.-Dec.			Jan.-Dec. Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec.Jan.-Dec. Jan.-Dec.
NCC Construction Sweden	6,332	7,399	21,530	25,043	243	325	637	801
NCC Construction Denmark	1,196	974	3,546	3,396	67	48	208	189
NCC Construction Finland	1,808	2,005	6,680	6,709	45	53	127	101
NCC Construction Norway	2,253	2,133	7,408	6,070	77	41	3	74
NCC Roads	3,416	3,354	11,999	12,211	106	120	406	417
NCC Housing	4,670	4,432	9,030	8,612	483	573	605	835
NCC Property Development	3,443	1,095	4,811	2,847	475	214	713	295
Total	23,118 23,118	21,393 21,393	65,003	64,889	1,496	1,373	2,700	2,710
Other items and eliminations	-2,044	-2,323	-7,180	-7,662	51	-41	-21	-192
Group	21,073 21,073	19,069 19,069	57,823	57,227	1,547	1,332	2,679	2,519

NCC's Construction units

MARKET PERFORMANCE

Demand in the Nordic construction market is recovering slowly. For 2014, NCC expects the Nordic construction market to grow slightly. The strongest performance is expected in the Norwegian and Swedish markets, while the trend will be weaker in Finland where there are concerns about the GDP trend.

MOST RECENT QUARTER, OCTOBER – DECEMBER 2013

ORDERS RECEIVED AND ORDER BACKLOG

Orders received by all construction units totaled SEK 10,146 M (11,197). Orders received by NCC Construction Sweden declined in the other buildings segment, due mainly to a weaker-than-expected market and the fact that a large order was received in the year-earlier period. NCC Construction Norway reported healthy orders in the civil engineering and other buildings segments. The total order backlog declined SEK 1,171 M during the quarter to SEK 32,652 M, primarily due to NCC Construction Sweden. Changes in exchange rates increased the order backlog by SEK 204 M during the quarter.

NET SALES

Net sales were lower, primarily for NCC Construction Sweden but also for NCC Construction Finland. At the same time, net sales were higher for NCC Construction in Denmark and Norway. In total, sales for NCC's Construction units declined to SEK 11,589 M (12,511).

OPERATING PROFIT

Earnings for NCC Construction Norway were positively impacted by higher production, combined with a number of positive adjustments of project forecasts. Earnings for NCC Construction Sweden declined, mainly due to a

reduction in volume. In total, operating profit amounted to SEK 432 M (467) for the construction units.

FULL-YEAR PERIOD, JANUARY – DECEMBER 2013

ORDERS RECEIVED AND ORDER BACKLOG

Orders received for the construction units declined yearon-year to SEK 38,866 M (39,433). Orders received were lower for NCC's Construction units in Sweden and Norway. Orders received were higher during the year for projects in the other buildings segment. A major project in the other buildings segment in NCC Construction Denmark also contributed to the increase. All segments in Denmark reported higher orders received during the year.

NET SALES

Sales in NCC's Construction units totaled SEK 39,164 M (41,218). The change was primarily due to lower sales in NCC Construction Sweden, which was offset by higher sales in NCC Construction Norway and NCC Construction Denmark. Sales in NCC Construction Finland were on a par with the year-earlier period.

OPERATING PROFIT

In total, operating profit amounted to SEK 975 M (1,165). The earnings decline was primarily due to lower volumes in NCC Construction Sweden and lower earnings in NCC Construction Norway resulting from impairment losses on projects during the year. The recovery in the Swedish market was weaker and arrived later than anticipated.

	2013	2012	2013	2012
SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
NCC Construction Sweden
Orders received	5,205	6,767	20,348	21,483
Order backlog	16,211	17,378	16,211	17,378
Net sales	6,332	7,399	21,530	25,043
Operating profit/loss	243	325	637	801
Operating margin, %	3.8	4.4	3.0	3.2
NCC Construction Denmark
Orders received	1,370	1,458	4,929	3,288
Order backlog	4,447	2,924	4,447	2,924
Net sales	1,196	974	3,546	3,396
Operating profit/loss	67	48	208	189
Operating margin, %	5.6	4.9	5.9	5.6
NCC Construction Finland
Orders received	1,945	1,919	6,491	6,576
Order backlog	5,630	5,667	5,630	5,667
Net sales	1,808	2,005	6,680	6,709
Operating profit/loss	45	53	127	101
Operating margin, %	2.5	2.6	1.9	1.5
NCC Construction Norway
Orders received	1,626	1,053	7,098	8,086
Order backlog	6,364	7,265	6,364	7,265
Net sales	2,253	2,133	7,408	6,070
Operating profit/loss	77	41	3	74
Operating margin, %	3.4	1.9	0.0	1.2

NCC CONSTRUCTION DENMARK

ORDERS RECEIVED BY PROJECT SIZE FOR NCC'S CONSTRUCTION UNITS IN QUARTER 4

ORDERS RECEIVED AND ORDER BACKLOG BY SEGMENT

	Orders received				Order backlog
	2013	2012	2013	2012	2013	2012
SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.	Dec. 31	Dec. 31
Civil engineering	3,137	3,441	14,344	14,648	10,817	10,961
Residential	3,400	3,570	8,964	9,286	8,609	8,635
Non-residential	3,794	4,252	15,715	15,338	13,415	13,542
Other items and eliminations	-185	-66	-157	162	-189	96
Total	10,146 10,146	11,197 11,197	38,866	39,433	32,652	33,234

NCC CONSTRUCTION FINLAND

NCC Roads

MARKET PERFORMANCE

Fourth-quarter demand for asphalt was higher thanks to the mild weather. Demand for aggregates weakened, primarily in southwest Sweden and Finland. For 2014, NCC believes that a rise in construction will lead to higher demand for aggregates. The asphalt market also has potential for growth in 2014. The road services market is characterized by intense competition and stable demand.

MOST RECENT QUARTER, OCTOBER – DECEMBER 2013

NET SALES

Net sales rose to SEK 3,416 M (3,354), due to higher asphalt volumes and increased prices for aggregates and asphalt.

OPERATING PROFIT

Earnings for the quarter declined year-on-year to SEK 106 M (120). The lower profit was mainly due to a number of road service projects in Sweden. The asphalt operations reported an excellent quarter. Higher volumes and enhanced efficiency resulted in a high margin for the asphalt operations. The margin for aggregates was higher but volumes were lower.

CAPITAL EMPLOYED

Capital employed declined for seasonal reasons by SEK 0.2 billion during the quarter to SEK 3.6 billion. The decline was lower than in the year-earlier period due to the late close of the season.

FULL-YEAR PERIOD, JANUARY – DECEMBER 2013

NET SALES

Due to lower volumes, sales declined to SEK 11,999 M (12,211). The late start to the season caused by the long and cold winter early in the year resulted in lower volumes of aggregates and asphalt. This was partly offset by an increase in sales in road services compared with the yearearlier period.

OPERATING PROFIT

Earnings amounted to SEK 406 M (417) and were on a par with the preceding year, primarily due to the strong recovery in the asphalt operations during the second half of the year, which offset the weak trend in the first quarter. Earnings in the aggregates segment declined primarily due to lower volumes. Losses and weak margins in the road service operations were charged to earnings. A new organization has been appointed to enhance the efficiency of the operations.

CAPITAL EMPLOYED

Capital employed rose by SEK 0.5 billion compared with the year-end and totaled SEK 3.6 billion.

QUARTERLY DATA

	2013 2013	2012	2013 2013	2012
SEK M	Oct.-Dec. Oct.-Dec.	Oct.-Dec.	Jan.-Dec. Jan.-Dec. Jan.-Dec.	Jan.-Dec.
NCC Roads
Orders received	3,001	2,836	12,311	11,807
Order backlog	4,598	4,250	4,598	4,250
Net sales	3,416	3,354	11,999	12,211
Operating profit/loss	106	120	406	417
Operating margin, %	3.1	3.6	3.4	3.4
Capital employed			3,557	3,049
Aggregates, tons 1)	7,287	7,709	27,395	29,657
Asphalt and paving, tons 1)	1,610	1,581	6,257	6,462

1) Sold volume

NCC Housing

MARKET PERFORMANCE

The most favorable market conditions currently exist in Germany and St. Petersburg. In Denmark, the market in Copenhagen has improved, while recovery in the rest of the country is slower. The markets in the Baltic countries improved during the quarter. Prices rose slightly in Sweden, but the market in Sweden was characterized by some caution and purchasing decisions are not made until construction is close to completion. The Finnish market declined during the quarter and was characterized by caution. In Norway, prices leveled out and sales take longer. NCC expects stable demand in all markets in 2014, except in Finland and Norway, which is more uncertain. Price levels are expected to remain essentially unchanged.

MOST RECENT QUARTER, OCTOBER – DECEMBER 2013

HOUSING SALES AND HOUSING STARTS

A total of 1,112 (917) housing units were sold to private customers and 281 (651) to the investor market. Housing sales to private customers increased in all markets except Norway and Finland. The largest increases were noted in St. Petersburg and Sweden. During the quarter, construction started on a total of 1,079 (1,468) housing units for private customers and 247 (536) housing units for the investor market. Robust sales facilitated a higher number of housing starts in Sweden. In Norway, no new housing units were started due to a cautious market. In St. Petersburg, start-ups were on a healthy level but lower than in the year-earlier period, when one major project started.

NET SALES

Net sales rose year-on-year mainly due to an increase in housing units being handed over and recognized in profit, but land sales also contributed. During the quarter, 1,454 (1,387) housing units for private customers and 511 (683) housing units for the investor market were recognized in profit.

OPERATING PROFIT

Profit totaled SEK 483 M (573). Earnings for NCC Housing did not achieve the level of the year-earlier period, primarily due to lower earnings from land sales in Sweden and Denmark.

CAPITAL EMPLOYED

Capital employed declined SEK 0.7 billion during the

quarter to SEK 9.9 billion due to the completion and handing over of numerous housing units.

FULL-YEAR PERIOD, JANUARY – DECEMBER 2013

HOUSING SALES AND CONSTRUCTION STARTS

A total of 3,747 (2,937) housing units were sold to private customers and 1,129 (1,395) to the investor market. Housing sales to private customers increased in all markets except Norway and Finland. During the year, a total of 3,715 (3,196) housing units for private customers and 1,095 (1,328) for the investor market were started. Higher sales facilitated more starts. Germany, Denmark and St. Petersburg accounted for a major portion of the rise in housing units for private customers.

NET SALES

Net sales were higher year-on-year mainly due to increased revenues from housing sales to investors and land sales. During the period, 2,951 (2,845) housing units for private customers and 903 (998) housing units for the investor market were recognized in profit.

OPERATING PROFIT

Profit totaled SEK 605 M (835). The margin from housing sales improved year-on-year. Profit during the year was negatively impacted by losses from the sale of rental units in Sweden, and land, impairment of land and restructuring costs in Sweden, as well as higher expenses caused by increased project volume.

CAPITAL EMPLOYED

Capital employed totaled SEK 9.9 billion, down SEK 0.1 billion compared with year-end 2012. Higher tied-up capital from several ongoing housing units was offset by a reduced land portfolio in non-priority areas.

QUARTERLY DATA

	2013	2012	2013	2012
SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
NCC Housing
Orders received	3,247	3,455	10,921	9,380
Order backlog	14,200	11,932	14,200	11,932
Net sales	4,670	4,432	9,030	8,612
Operating profit/loss	483	573	605	835
Operating margin, %	10.3	12.9	6.7	9.7
Capital employed			9,856	9,976

HOUSING DEVELOPMENT

		Sweden				Denmark				Finland				Baltic region
					Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec. Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec. Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec. Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec.
	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012
Building rights, end of period	11,200	12,800	11,200	12,800	900	1,400	900	1,400	9,700	9,200	9,700	9,200	2,200	2,300	2,200	2,300
Of which development rights on options	3,200	3,500	3,200	3,500	0	0	0	0	6,600	6,000	6,600	6,000	0	0	0	0
Housing development to private customers
Housing starts, during the period	306	44	681	690	60	105	263	167	257	346	656	728	0	45	137	118
Housing units sold, during the period	297	210	854	702	78	63	269	121	243	251	719	736	51	33	176	103
Housing units under construction, end of period	1,154	1,263	1,154	1,263	346	159	346	159	656	810	656	810	123	118	123	118
Sales rate units under construction, end of period % Completion rate units under construction, end of	56	43	56	43	63	29	63	29	36	47	36	47	13	13	13	13
period %	41	44	41	44	55	33	55	33	42	44	42	44	62	47	62	47
Profit-recognized housing units, during the period Completed, not profit recognized housing units,	267	364	713	701	21	56	92	110	388	401	859	939	45	18	165	94
end of period 1)	154	77	154	77	24	40	24	40	103	152	103	152	42	75	42	75
Housing units for sale (ongoing and completed), at end of period	626	799	626	799	148	153	148	153	522	585	522	585	139	178	139	178
Housing development to the investor market Housing starts, during the period	-6	0	288	142	0	0	0	0	183	295	447	594	0	0	0	0
Housing units sold, during the period	28	115	322	139	0	0	0	0	183	295	447	594	0	0	0	0
Housing units under construction, end of period2)	315	85	315	85	0	0	0	0	636	653	636	653	0	0	0	0
Sales rate units under construction, end of period %	91	28	91	28	0	0	0	0	100	100	100	100	0	0	0	0
Completion rate units under construction, end of
period %	17	80	17	80	0	0	0	0	51	43	51	43	0	0	0	0
Profit-recognized housing units, during the period Completed, not profit recognized housing units,	34	115	58	115	0	0	0	0	183	295	447	594	0	0	0	0
end of period 3)	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
		St. Petersburg	Petersburg			Norway Norway				Germany Germany				Group Group
					Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec. Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec. Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec. Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec.
	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012
Building rights, end of period	3,900	4,700	3,900	4,700	1,900	1,600	1,900	1,600	3,400	3,000	3,400	3,000	33,200	35,000	33,200	35,000
Of which development rights on options	0	0	0	0	500	500	500	500	2,900	1,300	2,900	1,300	13,200	11,300	13,200	11,300
Housing development to private customers
Housing starts, during the period	295 219	651 111	935 782	651 496	0	118	25	174	161	159	1,018	668	1,079	1,468	3,715	3 ,196
Housing units sold, during the period	219	111	782	496	10	54	67	144	214	195	880	635	1,112	917	3,747	2,937
Housing units under construction, end of period	1,586	1,302	1,586	1,302	192	262	192	262	774	477	774	477	4,831	4,391	4,831	4,391
Sales rate units under construction, end of period % Completion rate units under construction, end of	41	38	41	38	52	52	52	52	54	53	54	53	47	43	47	43
period %	49	49	49	49	77	43	77	43	55	58	55	58	49	47	49	47
Profit-recognized housing units, during the period	228	88	306	98	9	30	102	207	496	430	714	696	1,454	1,387	2,951	2,845
Completed, not profit recognized housing units,
end of period 1)	356	11	356	11	9	16	9	16	29	22	29	22	717	393	717	393
Housing units for sale (ongoing and completed), at
end of period	966	813	966	813	100	142	100	142	383	245	383	245	2,884	2,915	2,884	2,915
Housing development to the investor market
Housing starts, during the period	0	0	0	0	0	0	0	16	70	241	360	576	247	536	1,095	1,328
Housing units sold, during the period	0	0	0	0	0	0	0	16	70	241	360	646	281	651	1,129	1,395
Housing units under construction, end of period2)	0	7	0	7	0	0	0	0	601	632	601	632	1,552	1,377	1,552	1,377
Sales rate units under construction, end of period %	0	100	0	100	0	0	0	0	100	100	100	100	98	96	98	96
Completion rate units under construction, end of
period %	0	100	0	100	0	0	0	0	34	31	34	31	38	40	38	40
Profit-recognized housing units, during the period	0	59	7	59	0	0	0	16	294	214	391	214	511	683	903	998
Completed, not profit recognized housing units, end of period 3)	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0

1) Of the completed, not profit recognized housing units by the end of the period 375 (13) where sold.

2) Of the total number of housing units under construction to the investor market, 1,552 (1,377), 636 (653) has already been profit-recognized and 916 (724) remains to be profit-recognized.

3) Of the completed, not profit recognized housing units to the investor market by the end of the period 0 (0) where sold.

The diagram shows the scheduled completion date and the proportion of sold housing units under construction for private customers (both sold housing units and those that are for sale). Profit from housing projects sold to private customers is recognized on the date they are handed over.

NCC Property Development

MARKET PERFORMANCE

Lower transaction volumes characterized the property market in 2013. Modern and "green" properties with stable tenants in prime locations are in demand. In the leasing market, demand is favorable and vacancies are stable, except in Finland where demand in the office rental market is weaker. NCC believes that the expected GDP growth will have a positive effect on the Nordic property market in 2014 and the Swedish market has the best prospects for growth.

MOST RECENT QUARTER, OCTOBER – DECEMBER 2013

PROPERTY PROJECTS

Eight project sales were recognized in profit during the quarter. The office and commercial properties, Torsplan and Triangeln, in Sweden, Plaza Halo office project in Finland and Østensjøveien 27 in Norway; the retail projects Birsta, phase 1 and Eslöv phase 1 in Sweden, as well as Herredscentret I and II in Denmark. During the quarter, part of the Kolding Retailpark II shopping center in Denmark was also recognized in profit.

The office project Plaza Tuike in Finland was sold during the quarter and will be recognized in profit in the first quarter of 2014. For information on future profit recognition of projects, refer to the table on the following page.

At the end of the quarter, 17 (23) projects were either ongoing or completed but yet to be recognized in profit. Six of these have been sold. The costs incurred in all projects totaled SEK 3.0 billion (3.3), a completion rate of 60 (55) percent. During the quarter, 35,900 (18,000) square meters were leased. The leasing rate was 74 (68) percent.

NET SALES

Net sales were higher year-on-year and the eight projects that were recognized in profit accounted for the largest portion of sales. Five projects were recognized in profit in the year-earlier period.

OPERATING PROFIT

Operating profit was higher than in the year-earlier period and amounted to SEK 475 M (214). Sales of land and

earnings from earlier sales also contributed to earnings. The operating net was SEK 11 M (18).

CAPITAL EMPLOYED

Capital employed declined SEK 2.1 billion during the quarter to SEK 4.0 billion, mainly due to project sales.

FULL-YEAR PERIOD, JANUARY – DECEMBER 2013

PROPERTY PROJECTS

A total of 11 (9) projects were recognized in profit: five in Sweden, three in Denmark, two in Finland and one in Norway. Construction was started on five projects, of which two in Finland, one in Norway, one in Sweden and one in Denmark. Leases were signed for 120,100 square meters (76,400) during the quarter.

NET SALES

Net sales increased year-on-year to SEK 4,811 M (2,847). Most of the net sales in the period derived from the projects recognized in profit during the fourth quarter.

OPERATING PROFIT

Operating profit increased year-on-year to SEK 713 M (295). Eleven projects were recognized in profit during the period. Earnings from sales of land and from earlier sales also contributed to the positive result. The operating net for the period was SEK 68 M (36).

CAPITAL EMPLOYED

Capital employed declined SEK 1.0 billion during the quarter to SEK 4.0 billion. The decline was primarily attributable to project sales in the fourth quarter.

QUARTERLY DATA

	2013	2012	2013	2012
SEK M	Oct.-Dec.	Oct.-Dec.	Jan.-Dec.	Jan.-Dec.
NCC Property Development
Net sales	3,443	1,095	4,811	2,847
Operating profit/loss	475	214	713	295
Capital employed			3,991	4,989

			Sold, estimated	Completion	Leasable	Letting
Project Project	Type	City	recognition in profit	ratio, %	area, m2	ratio, %
Ullevi Park 4	Office	Gothenburg		26	20,200	100
Total Sweden				26 26	20,200 20,200	100
CH Zenit 4.1	Office	Aarhus		90	2,800	23
Kolding Retailpark II	Retail	Kolding		79	4,700	68
Lyngby	Retail	Lyngby		99	2,300	100
Portlandsilos	Office	Copenhagen	Q3, 2014	77	12,800	50
Roskildevej	Retail	Taastrup		98	4,000	51
Viborg Retail II + III	Retail	Viborg		95	3,200	69
Gladsaxe Company House	Office	Copenhagen	Q1, 2015	39	14,800	71
Total Denmark				72 72	44,600 44,600	63
Aitio 1 Vivaldi	Office	Helsinki		99	6,200	63
Alberga C	Office	Espoo	Q1, 2014	96	5,400	82
Lielahti Center	Retail	Tampere	Q2, 2014	63	13,300	75
Matinkylä 2)	Retail/Office	Espoo		23	12,000	20
Plaza Tuike	Office	Vantaa	Q1, 2014	95	5,400	82
Tavastehus Centrum	Retail	Hämeenlinna	Q4, 2014	74	26,200	84
Vallila	Retail/Office	Helsinki		72	5,000	100
Total Finland				65 65	73,500 73,500	68
Lysaker Polaris 1	Office	Oslo		37	19,500	72
Stavanger Business Park 1	Office	Stavanger		92	9,200	100
Total Norway				53 53	28,700 28,700	80
Total				60 60	167,000167,000 167,000	74

PROPERTY DEVELOPMENT PROJECTS AT DECEMBER 31, 2013 1)

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.

2) The project covers approximately 25,000 square meters of leasable area and isimplemented 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.

Consolidated income statement

		2013 2013	2012	2013 2013	2012
SEK M	Note 1	Oct.-Dec. Oct.-Dec.	Oct.-Dec.	Jan.-Dec. Jan.-Dec.	Jan.-Dec.
Net sales		21,073	19,069	57,823	57,227
Production costs	Note 2,3	-18,674	-16,862	-52,027	-51,731
Gross profit		2,400 2,400	2,208 2,208	5,796	5,495
Selling and administrative expenses	Note 2	-852	-881	-3,130	-2,988
Result from sales of owner-occupied properties		4	4	6	3
Impairment losses and reversal
of impairment losses, fixed assets	Note 3			7	-2
Result from sales of Group companies			-1		6
Result from participations in associated companies		-5	3	1	5
Operating profit/loss		1,547 1,547	1,332 1,332	2,679	2,519
Financial income		63	45	165	141
Financial expense		-138	-119	-444	-382
Net financial items		-75 -75	-74 -74	-279	-241
Profit/loss after financial items		1,472 1,472	1,258 1,258	2,400	2,277
Tax on net profit/loss for the period		-241	-129	-411	-367
Net profit/loss for the period		1,231 1,231	1,130 1,130	1,989	1,910
Attributable to:
NCC´s shareholders		1,229	1,127	1,986	1,905
Non-controlling interests		3	3	3	5
Net profit/loss for the period		1,231 1,231	1,130 1,130	1,989	1,910
Earnings per share
Before dilution
Net profit/loss for the period, SEK		11.39	10.43	18.40	17.62
After dilution
Net profit/loss for the period, SEK		11.39	10.43	18.40	17.62
Number of shares, millions
Total number of issued shares		108.4	108.4	108.4	108.4
Average number of shares outstanding before
dillution during the period		107.8	108.0	107.9	108.2
Average number of shares after dilution		107.8	108.0	107.9	108.2
Number of shares outstanding before dilution at the end of the period		107.8	108.0	107.8	108.0

Comparative figures have been recalculated to comply with a new accounting policy according to IAS 19, refer to page 15.

Consolidated statement of comprehensive income

		2013 2013	2012	2013 2013	2012
SEK M	Note 1	Oct.-Dec. Oct.-Dec.	Oct.-Dec.	Jan.-Dec. Jan.-Dec. Jan.-Dec.	Jan.-Dec.
Net profit/loss for the period		1,231 1,231	1,130 1,130	1,989	1,910
	Items that have been recycled or should be recycled to net profit/loss for the period
Exchange differences on translating foreign operations		61	61		-79
Change in hedging/fair value reserve		-28	-27	-18	37
Cash flow hedges		-10		19	-20
	Income tax relating to items that have been or should be recycled to net profit/loss for the period	8	5		-7
		31	39	1	-69
Items that cannot be recycled to net profit/loss for the period
Revaluation of defined benefit pension plans		36	-13	187	-137
	Income tax relating to items that cannot be recycled to net profit/loss for the period	-9	-62	-41	-27
		27	-75	146	-164
Other comprehensive income		58	-36	147	-233
Total comprehensive income		1,289 1,289	1,094 1,094	2,135	1,677
Attributable to:
NCC´s shareholders		1,286	1,091	2,132	1,672
Non-controlling interests		3	3	3	5
Total comprehensive income		1,289 1,289	1,094 1,094	2,135	1,677

Consolidated balance sheet

		2013 2013	2012
SEK M	Note 1	Dec. 31 Dec. 31	Dec. 31
ASSETS
Fixed assets
Goodwill		1,802	1,827
Other intangible assets		267	204
Owner-occupied properties		704	662
Machinery and equipment		2,502	2,395
Other long-term holdnings of securities		141	167
Long-term receivables	Note 5	247	230
Deferred tax assets		249	385
Total fixed assets	Note 7	5,910 5,910	5,870 5,870
Current assets
Property projects	Note 4	5,251	5,321
Housing projects	Note 4	12,625	11,738
Materials and inventories		673	655
Tax receivables		92	54
Accounts receivable		7,377	7,725
Worked-up, non-invoiced revenues		918	782
Prepaid expenses and accrued income		1,325	1,544
Other receivables	Note 5	932	1,223
Short-term investments1)	Note 5	143	168
Cash and cash equivalents	Note 5	3,548	2,634
Total current assets	Note 7	32,883 32,883	31,844 31,844
TOTAL ASSETS		38,793 38,793	37,713 37,713
EQUITY
Share capital		867	867
Other capital contributions		1,844	1,844
Reserves		-206	-207
Profit brought forward, including current-year profit		6,152	5,130
Shareholders´ equity		8,658 8,658	7,634 7,634
Non-controlling interests		17	15
Total shareholders´ equity		8,675 8,675	7,649 7,649
LIABILITIES
Long-term liabilities
Long-term interest-bearing liabilities	Note 5	7,029	7,102
Other long-term liabilities		299	841
Provisions for pensions and similar obligations		125	393
Deferred tax liabilities		414	436
Other provisions	Note 5	2,070	2,435
Total long-term liabilities	Note 7	9,937 9,937	11,208 11,208
Current liabilities
Current interest-bearing liabilities	Note 5	2,515	2,141
Accounts payable		4,096	4,659
Tax liabilities		58	122
Invoiced revenues not worked-up		4,264	4,241
Accrued expenses and prepaid income		3,888	3,748
Other current liabilities		5,360	3,945
Total current liabilities	Note 7	20,181 20,181	18,856 18,856
Total liabilities		30,118 30,118	30,063 30,063
TOTAL SHAREHOLDERS´ EQUITY AND LIABILITIES		38,793 38,793	37,713 37,713
ASSETS PLEDGED		1,482 1,482	1,344
CONTINGENT LIABLITIES		2,261 2,261	1,446

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

Changes in shareholders' equity, Group

		Dec. 31, 2013
			Total			Total
	Shareholders´ Non-controlling				shareholders´ Shareholders´ Non-controlling	shareholders´
SEK M	equity	interests	equity	equity	interests	equity
Opening balance, January 1 balance, 1	7,634 7,634	15	7,649	8,286	11	8,297
Adjustment for changed accounting principle				-1,186		-1,186
Adjusted opening balance, January 1	7,634	15	7,649	7,100	11	7,111
Total comprehensive income	2,132	3	2,135	1,672	5	1,677
Transactions with non-controlling interests
Acqusition of non-controlling interests	-7		-7
Dividends	-1,080	-1	-1,081	-1,084	-1	-1,085
Acquisition/sale of treasury shares	-28		-28	-56		-56
Performance based incentive program	6		6	2		2
Closing balance	8,658 8,658	17 17	8,675	7,634	15	7,649

Comparative figures have been recalculated to comply with a new accounting policy according to IAS 19, refer to page 15.

If previous accounting policies for pensions under IAS 19 had been applied, the equity would have been SEK 1,061 M higher and net debt SEK 125 M lower at December 31st 2013.

Consolidated cash-flow statement, condensed

	2013 2013	2012	2013 2013	2012
SEK M	Oct.-Dec. Oct.-Dec.	Oct.-Dec.	Jan.-Dec. Jan.-Dec. Jan.-Dec.	Jan.-Dec.
OPERATING ACTIVITIES
Profit/loss after financial items	1,472	1,258	2,400	2,277
Adjustments for items not included in cash flow	197	287	359	548
Taxes paid	-38	-68	-438	-367
Cash flow from operating activities before changes in working
capital	1,631 1,631	1,476 1,476	2,321	2,458
Cash flow from changes in working capital
Divestment of property projects	3,150	725	4,170	1,764
Gross investments in property projects	-1,546	-714	-3,890	-2,692
Divestment of housing projects	3,605	3,601	7,067	6,951
Gross investments in housing projects	-2,405	-2,675	-7,912	-8,997
Other changes in working capital	88	836	775	489
Cash flow from changes in working capital	2,893 2,893	1,772 1,772	211	-2,484
Cash flow from operating activities	4,523 4,523	3,248 3,248	2,532	-26
INVESTING ACTIVITIES
Sale of building and land	6	8	9	30
Increase (-) from investing activities	-289	-275	-880	-936
Cash flow from investing activities	-283 -283	-267 -267	-870	-906
CASH FLOW BEFORE FINANCING	4,240 4,240	2,981 2,981	1,661	-932
FINANCING ACTIVITIES
Cash flow from financing activities	-2,118	-1,454	-741	2,774
CASH FLOW DURING THE PERIOD	2,122 2,122	1,527 1,527	920	1,842
Cash and cash equivalents at beginning of period	1,422	1,103	2,634	796
Effects of exchange rate changes on cash and cash equivalents	4	5	-6	-4
CASH AND CASH EQUIVALENTS AT END OF PERIOD	3,548 3,548	2,634 2,634	3,548 3,548	2,634 2,634
Short-term investments due later than three months	143	168	143	168
Total liquid assets	3,691 3,691	2,802 2,802	3,691	2,802

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. Changes have occurred in the recognition of employee benefits, for which the revised IAS 19 has been applied since January 1, 2013. Comparative figures for 2012 have been recalculated. In brief, the amendment of IAS 19 entails that the opportunity to utilize the corridor method has been discontinued whereby actuarial gains and losses that arise must be recognized directly against Other comprehensive

income in the period they arise. Furthermore, the return on plan assets must be calculated using the same rate as the discount rate for the pension commitment. The interest-rate component in the pension commitment and the anticipated return on plan assets are now recognized in net financial items. For the effects of the new accounting policies, refer to the pro-forma report on NCC's website. Certain changes also occurred in the presentation of Other comprehensive income.

In other respects, the interim report has been prepared pursuant to the same accounting policies and methods of calculation as the 2012 Annual Report (Note 1, pages 60- 67).

NOTE 2. DEPRECIATION/AMORTIZATION

	2013 2013	2012	2013 2013	2012
SEK M	Oct.-Dec. Oct.-Dec.	Oct.-Dec.	Jan.-Dec.Jan.-Dec. Jan.-Dec.	Jan.-Dec.
Other intangible assets	-12	-8	-36	-24
Owner-occupied properties	-8	-7	-26	-28
Machinery and equipment	-178	-157	-641	-579
Total depreciation	-198 -198	-171 -171	-703	-631

NOTE 3. IMPAIRMENT LOSSES AND REVERSED IMPAIRMENT LOSSES

2013 2013	2012	2013 2013	2012
Oct.-Dec. Oct.-Dec.	Oct.-Dec.	Jan.-Dec.Jan.-Dec. Jan.-Dec.	Jan.-Dec.
	-1	-23	-1
-2		-2	-41
	-1	7	-1
			-1
-1	-1	-17	-44

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

NOTE 4. SPECIFICATION OF PROPERTY PROJECTS AND HOUSING PROJECTS

	2013 2013	2012
SEK M	Dec. 31 Dec. 31	Dec. 31
Properties held for future development	2,224	2,183
Ongoing property projects	1,996	2,675
Completed property projects	1,031	462
Total property development projects	5,251 5,251	5,321 5,321
Properties held for future development	4,865	5,453
Capitalized developing costs	1,321	1,265
Ongoing proprietary housing projects	5,303	4,180
Unsold completed housing units	1,136	840
Total housing projects	12,625 12,625	11,738 11,738

NOTE 5. SPECIFICATION OF NET INDEBTEDNESS

	2013 2013	2012
SEK M	Dec. 31 31	Dec. 31
Long-term interest-bearing receivables	230	263
Current interest-bearing receivables	237	272
Cash and bank balances	3,548	2,634
Total interest-bearing receivables, cash and cash equivalents	4,014 4,014	3,169
Long-term interest-bearing liabilities	7,029	7,102
Pensions and similar obligations	125	393
Current interest-bearing liabilities	2,515	2,141
Total interest-bearing liabilities	9,670	9,636
Net indebtedness	5,656 5,656	6,467
whereof net debt in ongoing projects in Swedish tenant-owners'
associations and Finnish housing companies
Interest-bearing liabilities	1,750	2,232
Cash and bank balances	36	51
Net indebtedness	1,714	2,181

NOTE 6. SEGMENT REPORTING

Other items NCC and NCC NCC Property Segment eliminations1) January - December 2013 Sweden Denmark Finland Norway Roads Housing Development total Group Net sales, external 19,129 2,857 4,134 6,752 11,177 9,026 4,746 57,821 2 57,823 Net sales, internal 2,401 688 2,546 656 822 4 65 7,182 -7,182 Net sales, total 21,530 3,546 6,680 7,408 11,999 9,030 4,811 65,003 -7,180 57,823 Operating profit 637 208 127 3 406 605 713 2,700 -21 2,679 Net financial items -279 Profit/loss after financial items 2,400 NCC Construction Other items NCC and NCC NCC Property Segment eliminations 2) October - December 2013 Sweden Denmark Finland Norway Roads Housing Development total Group Net sales, external 5,685 914 1,174 2,075 3,131 4,669 3,426 21,072 2 21,073 Net sales, internal 647 282 634 179 286 2 17 2,046 -2,046 Net sales, total 6,332 1,196 1,808 2,253 3,416 4,670 3,443 23,118 -2,044 21,073 Operating profit 243 67 45 77 106 483 475 1,496 51 1,547 Net financial items -75 Profit/loss after financial items 1,472 NCC Construction Other items NCC and NCC NCC Property Segment eliminations1) Sweden Denmark Finland Norway Roads Housing Development total Group January - December 2012
Net sales, external 22,080 2,849 4,029 5,510 11,360 8,609 2,783 57,220 6 57,227
Net sales, internal 2,963 547 2,680 560 851 2 65 7,670 -7,670
Net sales, total 25,043 3,396 6,709 6,070 12,211 8,612 2,847 64,889 -7,662 57,227
Operating profit 801 189 101 74 417 835 295 2,710 -192 2,519
Net financial items -241
Profit/loss after financial items 2,277
NCC Construction
Other items NCC
and NCC NCC Property Segment
eliminations 2) Sweden Denmark Finland Norway Roads Housing Development total Group October - December 2012
Net sales, external 6,553 856 1,210 1,959 2,981 4,432 1,077 19,069 19,069
Net sales, internal 846 119 795 174 372 18 2,323 -2,323
Net sales, total 7,399 974 2,005 2,133 3,354 4,432 1,095 21,393 -2,323 19,069 Operating profit 325 48 53 41 120 573 214 1,373 -41 1,332
Net financial items -74
Profit/loss after financial items 1,258

1) The figures for the full 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 36 M (expense: 66). Eliminations of internal profits amount to an income of SEK 66 M (expense: 16) and other Group adjustments, mainly consisting of differences of accounting policy between the segments and the Group (including pensions) amount to an expense of SEK 51 M (expense: 110).

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 27 M (expense: 32). Furthermore elimination of internal profits are included, an income of SEK 87 M (income: 41) and other Group adjustments, mainly consisting of differences of accounting policy between the segments and the Group (including pensions), an expense of SEK 9 M (expense: 50).

NOTE 7. FAIR VALUE OF FINANCIAL INSTRUMENTS

In the tables below, disclosures are made concerning how the fair value of financial instruments that are continuously measured at fair value in NCC's balance sheet has been determined. When determining fair value, assets are divided into the three levels described below. No transfers were 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 for both retail and hedging purposes. Fair-value measurement of currency-forward 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 on the basis of observable yield curves. Discounting has no significant impact on the measurement of derivatives in level 2. NCC has no financial instruments in level 3.

SEK M		Dec. 31 2013 2013			Dec. 31 2012
	Level 1	Level 2	Total	Level 1	Level 2	Total
Financial assets measured at fair value through profit
and loss
Securities held for trading	21		21	84		84
Derivative instruments held for trading		93	93		26	26
Derivative instruments used for hedging purposes		14	14		11	11
Total assets	21	107	128	84	37	121
Financial liabilities measured at fair value through profit
and loss
Derivative instruments held for trading		28	28		41	41
Derivative instruments used for hedging purposes		67	67		69	69
Total liabilities	0	95	95	0	110	110

SEK M	Dec. 31 2013	2013	Dec. 31 2012
	Carrying	Fair	Carrying	Fair
	amount	value	amount	value
Long-term holdings of securities held to maturity	109	112	136	142
Short-term investments held to maturity	122	122	84	85
Long-term interest-bearing liabilities	7,029	7,094	7,102	7,121
Current interest-bearing liabilities	2,515	2,517	2,141	2,141

It is estimated that the fair value of the following financial assets and liabilities matches the carrying amount: Accounts receivables and other receivables

Other current receivables

Cash and other cash and cash equivalents

Accounts payable and other liabilities

Other assets and liabilities recognized for sale.

NOTE 8. OFFSETTING FINANCIAL INSTRUMENTS

NCC has binding netting arrangements (ISDA

agreements) with all counterparties for derivative trading, whereby NCC can offset receivables and liabilities should

a counterparty become insolvent or in another event. The following table sets out the gross financial assets and liabilities recognized and the amounts available for offsetting.

SEK M	Dec. 31, 2013 Dec.	2013	Dec. 31, 2012
	Financial	Financial	Financial	Financial
	assets	liabilities	assets	liabilities
Gross amounts presented in the balance sheet	107	95	37	110
Amounts included in an offset agreement	-61	-61	-17	-17
Net amounts after amounts included in an offset agreement	46	34	20	93

Parent Company

MOST RECENT QUARTER, OCTOBER – DECEMBER 2013

Invoicing for the Parent Company amounted to SEK 3,243 M (4,826).Compared with the quarter, income recognition in the year-earlier period was higher. Income recognition occurs when projects have been completed. Profit after financial items totaled SEK 352 M (364).

FULL YEAR PERIOD, JANUARY–DECEMBER 2013

Invoicing for the Parent Company totaled SEK 23,357 M (25,763). Profit after financial items was SEK 1,723 M (1,556). Income recognition was lower and dividends from subsidiaries higher during 2013. In the Parent Company, profit is recognized when projects are completed. The average number of employees was 7,173 (7,220).

Parent Company income statement

		2013 2013	2012	2013 2013	2012
SEK M	Note 1	Oct.-Dec. Oct.-Dec.	Oct.-Dec.	Jan.-Dec. Jan.-Dec.	Jan.-Dec.
Net sales		3,243	4,826	23,357	25,763
Production costs		-2,540	-4,126	-21,341	-23,296
Gross profit		703 703	700 700	2,016	2,467
Selling and administrative expenses		-392	-380	-1,464	-1,412
Operating profit		311 311	320 320	553	1,055
Result from financial investment
Result from participations in Group companies		95	69	1,308	524
Result from participations in associated companies		-3	14	-2	13
Result from financial current assets		30	37	124	188
Interest expense and similar items		-81	-76	-260	-223
Result after financial items		352 352	364 364	1,723	1,556
Appropriations		672	-46	672	-46
Tax on net profit for the period		-175	-31	-240	-289
Net profit for the period		849 849	288 288	2,155	1,221

Parent Company statement of comprehensive income

		2013 2013	2012	2013 2013	2012
SEK M	Note 1	Oct.-Dec. Oct.-Dec.	Oct.-Dec.	Jan.-Dec. Jan.-Dec.	Jan.-Dec.
Net profit for the period		849	288	2,155	1,221
Total comprehensive income during the year		849 849	288 288	2,155	1,221

Parent Company balance sheet, condensed

		2013 2013	2012
SEK M	Note 1	Dec. 31	Dec. 31
ASSETS
Intangible fixed assets		75	35
Total intangible fixed assets		75	35
Tangible fixed assets		91	109
Financial fixed assets		6,624	6,487
Total fixed assets		6,790 6,790	6,631
Housing projects		505	315
Materials and inventories		52	35
Current receivables		5,822	6,194
Short term investments		7,100	5,725
Cash and bank balances		705	1,259
Total current assets		14,184 14,184	13,529 13,529
TOTAL ASSETS		20,974 20,974	20,160
SHAREHOLDERS´ EQUITY AND LIABILITIES
Shareholders´ equity		7,432	6,376
Untaxed reserves		392	739
Provisions		688	876
Long term liabilities		2,571	2,701
Current liabilities		9,891	9,467
TOTAL SHAREHOLDERS´ EQUITY AND LIABILITIES		20,974 20,974	20,160 20,160
Assets pledged		0	12
Contingent liabilities		23,017 23,017	19,032 19,032

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 2012 Annual Report (Note 1, pages 60-67).

Significant risks and uncertainties

GROUP

An account of the risks to which NCC may be exposed is presented in the 2012 Annual Report (pages 46-48). 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 and NCC's subsidiaries, associated companies and joint ventures. The Parent Company's related-party transactions were of a production character. Related-company sales during the fourth quarter amounted to SEK 6 M (4) and purchases to SEK 124 M (134). For full-year, sales amounted to SEK 15 M (29) and purchases to SEK 441 M (534). The transactions were conducted on normal market terms.

Information to shareholders

REPURCHASE OF SHARES NCC AB holds 592,500 Series B treasury shares to meet its obligations pursuant to LTI 2012 and LTI 2013.

Other significant events

NEW ORGANIZATION FOR NCC ROADS NCC introduced a Nordic organization with increased customer focus for the NCC Roads business area. This has resulted in a pan-Nordic organization with a focus on NCC's customer offerings. The new organization, which came into effect on January 1, 2014, comprises three divisions: aggregates, asphalt and road services.

NEW ORGANIZATION FOR NCC CONSTRUCTION SWEDEN More distinct specialization combined with a strong local presence will enhance the efficiency of the NCC Construction Sweden business area in specific market segments. The business area has implemented an organizational change to enhance the efficiency of its market and production-development activities. Under the new organization, the geographic regions will be replaced by the Buildings, Housing, Civil Engineering, General Construction and Land and Industrial Construction segments. The new organization came into effect on January 1, 2014.

Proposed dividend

The Board proposes a dividend of SEK 12.00 (10.00) per share, divided between two payment occasions. Proposal for the record date for the first payment of SEK 6.00 is April 7, 2014 and October 28, 2014 has been proposed for the second payment of SEK 6.00.

Annual General Meeting

NCC's Annual General Meeting will be held at Vinterträdgården, Grand Hôtel, Royal's entrance hall on Stallgatan 6 in Stockholm, on April 2, 2014. The Meeting will open at 4:30 p.m. A notice convening the Annual General Meeting will be published in Post- och Inrikes Tidningar, and will be posted on NCC's website www.ncc.se on February 25. Confirmation of the notice convening the Annual General Meeting will be announced in Dagens Nyheter and Svenska Dagbladet on the same date. Motions for resolution by the Annual General Meeting from the Board and the Nomination Committee will be available on the website, where it will also be possible to register for the Meeting.

Nomination Committee's proposal to the Annual General Meeting

The Nomination Committee proposes that the Board of Directors, insofar as it is elected by the Annual General Meeting, shall comprise seven ordinary members with no deputy members. Antonia Ax:son Johnson has declined reelection after 15 years as a member.

The Nomination Committee proposes the re-election of the current members: Tomas Billing (member since 1999, Chairman since 2001), Ulla Litzén (member since 2008), Christoph Vitzthum (member since 2010), Olof Johansson (member since 2012) and Sven-Olof Johansson (member since 2012). The Nomination Committee proposes the new election of Carina Edblad and Viveca Ax:son Johnson and that Tomas Billing be re-elected Chairman.

Carina Edblad, born in 1963, has a civil engineering degree from Chalmers Institute of Technology. Since 2011, she has been the President of Färdig Betong AB. Carina has 25 years of experience from Skanska AB and she has worked in all phases of the construction process. She has been Line Manager and Chief of Staff in various operations in the Nordic region. Shareholding in NCC: 0 shares.

Viveca Ax:son Johnson, born 1963, has been Chairman of Nordstjernan AB since 2007. She has 17 years of experience from various positions within the Nordstjernan Group. Viveca is also Board member of Rosti AB, Etac AB and Antti Ahlström Perilliset Oy. Shareholding in NCC: 74,000 Series B shares and 25,000 Series A shares and 44,000 Series B shares through private companies.

Olof Johansson, Sven-Olof Johansson, Ulla Litzén, Christoph Vitzthum and Carina Edblad are deemed independent in relation to the company, company management and major shareholders in the company. Tomas Billing and Viveca Ax:son Johnson are deemed dependent in relation to NCC's principal shareholder Nordstjernan, but independent in relation to the company and company management.

Ahead of the 2014 Annual General Meeting, NCC's Nomination Committee comprises Viveca Ax:son Johnson (Chairman of the Board of Nordstjernan AB), Marianne Nilsson (Executive Vice President of Swedbank Robur AB), and Johan Strandberg (Analyst at SEB Fonder), with Viveca Ax:son Johnson as Chairman. Tomas Billing, Chairman of the NCC Board of Directors, is a co-opted member of the Nomination Committee but has no voting right.

The Nomination Committee's other proposals will be presented in the notice convening the Annual General Meeting.

Reporting occasions in 2014

Annual General Meeting April 2, 2014 Interim report, Jan.-Mar. 2014 April 29, 2014 Interim report, Jan.-Jun. 2014 July 18, 2014 Interim report, Jan.-Sep. 2014 October 24, 2014

Signatures

Solna, January 30, 2014

Peter Wågström President and CEO

Reporting by geographical market

January - December

January - December									Average numbers
	Orders received		Order backlog		Net sales		EBIT		of employees		Capital employed
SEK M SEK M	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012	2013	20 12
Sweden	27,560	28,659	22,366	23,236	30,547	31,338	1,648	1,511	9,988	10,060	7,382	8,287
Denmark	7,683	5,571	5,995	3,586	5,671	6,721	239	297	2,114	2,239	3,847	3,478
Finland	7,381	7,461	6,514	6,883	8,181	8,261	267	343	2,786	2,810	3,039	2,708
Norway	9,691	10,425	7,641	8,397	10,172	8,590	198	143	2,418	2,090	3,453	3,557
Germany	3,255	2,664	3,256	2,402	2,508	2,140	229	159	686	650	877	985
St. Petersburg	1,290	912	1,800	1,253	633	500	108	80	356	314	779	903
The Baltic countries	118	68	89	77	111	73	-11	-20	12	12	527	533

The Baltic Construction units are reported by Construction Finland

Comparative figures have been recalculated to comply with a new accounting policy according to IAS 19, refer to page 15.

Quarterly review

	2013	2013	2013	2013	2012	2012	2012	2012	2011
					Oct.-Dec. Jul.-Sep. Apr.-Jun. Jan.-Mar. Oct.-Dec. Jul.-Sep. Apr.-Jun. Jan.-Mar. Oct.-Dec.
Financial statements, SEK M
Net sales	21,073	13,129	13,535	10,084	19,069	13,765	13,733	10,659	18,119
Operating profit/loss	1,547	823	526	-217	1,332	814	512	-139	1,140
Profit/loss after net financial items	1,472	748	457	-276	1,258	742	451	-173	1,080
Profit/loss for the period	1,229	611	362	-215	1,127	569	343	-131	768
Cash flow, SEK M
Cash flow from operating activities	4,523	-43	-1,191	-758	3,248	-245	-1,928	-1,101	952
Cash flow from investing activities	-283	-185	-211	-192	-267	-247	-251	-141	-246
Cash flow before financing	4,240	-227	-1,402	-950	2,981	-492	-2,179	-1,242	706
Cash flow from financing activities	-2,118	460	812	105	-1,454	476	2,046	1,706	-948
Net debt	5,656	9,893	9,722	7,250	6,467	9,430	8,979	5,493	3,960
Order status, SEK M
Orders received	14,363	13,143	17,798	11,675	15,423	13,160	15,453	11,723	14,932
Order backlog	47,638	51,065	52,079	46,917	45,833	48,548	49,116	47,899	46,314
Personnel
Average number of employees	18,360	17,274	16,706	15,861	18,175	17,950	16,844	16,240	17,459

Summary of key figures

	2013	20127)	2013	2012 7)	2012	2011	2010	2009
		Oct.-Dec. Oct.-Dec Jan.-Dec			Jan.-Dec Jan.-Dec Jan.-Dec Jan.-Dec Jan.-Dec
Profitability ratios
Return on shareholders equity, % 1)	26	28	26	28	23	17	20	25
Return on capital employed, % 1)	15	17	15	17	15	16	19	17
Financial ratios at period-end
Interest-coverage ratio, % 1)	6.4	7.0	6.4	7.0	6.5	7.4	5.3	5.0
Equity/asset ratio, %	22	20	22	20	23	25	26	23
Interest bearing liabilities/total assets, %	25	26	25	26	24	17	14	15
Net debt, SEK M	5,656	6,467	5,656	6,467	6,061	3,960	431	1,784
Debt/equity ratio, times	0.7	0.8	0.7	0.8	0.7	0.5	0.1	0.2
Capital employed at period end, SEK M	18,345	17,285	18,345	17,285	18,241	13,739	12,390	12,217
Capital employed, average 1)	18,005	15,755	18,005	15,755	16,632	13,101	12,033	15,389
Capital turnover rate, times	3.2	3.6	3.2	3.6	3.4	4.0	4.1	3.6
Share of risk-bearing capital, %	23	21	23	21	25	27	28	25
Average interest rate, % 5)	3.3	3.6	3.3	3.6	3.6	4.2	4.6	4.5
Average period of fixed interest, years 5)	1.2	1.1	1.2	1.1	1.1	0.8	1.5	1.8
Average interest rate, % 6)	2.7	2.4	2.7	2.4	2.4	2.7	2.3
Average period of fixed interest, years 6)	0.1	0.1	0.1	0.1	0.1	0.1	0.1
Per share data
Profit/loss after tax, before dilution, SEK	11.39	10.43	18.40	17.62	17.51	12.08	14.05	15.26
Profit/loss after tax, after dilution, SEK	11.39	10.43	18.40	17.62	17.51	12.08	14.05	15.26
Cash flow from operating activities, before dilution, SEK	41.94	30.07	23.46	-0.24	-0.24	-14.27	22.35	59.39
Cash flow from operating activities, after dilution, SEK	39.32	27.60	15.40	-8.61	-8.61	-22.17	17.84	54.96
P/E ratio 1)	11	8	11	8	8	10	11	8
Dividend, ordinary, SEK 8)			12.00	10.00	10.00	10.00	10.00	6.00
Dividend yield, %			5.7	7.3	7.3	8.3	6.8	5.1
Shareholders' equity before dilution, SEK	80.24	70.58	80.24	70.58	82.97	76.41	74.81	68.91
Shareholders' equity after dilution, SEK	80.24	70.58	80.24	70.58	82.97	76.41	74.80	68.90
Share price/shareholders' equity, %	262	193	262	193	164	158	198	172
Share price at period-end, NCC B, SEK	209.90	136.20	209.90	136.20	136.20	121.00	147.80	118.25
Number of shares, millions
Total number of issued shares2)	108.4	108.4	108.4	108.4	108.4	108.4	108.4	108.4
Treasury shares at period-end	0.6	0.4	0.6	0.4	0.4	0.0	0.0	0.0
Total number of shares outstanding at period-end before dilution	107.8	108.0	107.8	108.0	108.0	108.4	108.4	108.4
Average number of shares outstanding before dilution during the period	107.8	108.0	107.9	108.2	108.2	108.4	108.4	108.4
Market capitalization before dilution, SEK M	22,625	14,706	22,625	14,706	14,706	13,136	16,005	12,809
Financial objectives and dividend	2013	20127)	2012	2011	2010	2009	20093)	20083)
Return on shareholders equity, % 4)	26	28	23	17	20	25	18	27
Debt/equity ratio, times 5)	0.7	0.8	0.7	0.5	0.1	0.5	0.1	0.5

Dividend, ordinary, SEK 8) 12.00 10,00 10.00 10.00 10.00 6.00 6.00 4

1) Calculations are based on a 12 month average.

2) All shares issued by NCC are common shares.

3) The column is not recalculated according to IFRIC 15.

4) New objective as of 2010: < 1.5. Previous objective: <1.0. Return on shareholders equity, 20%.

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

6) Liabilities pertaining to Swedish tenant-owners' association and Finnish housing companies. 7) The amounts are adjusted for change in accounting policy regarding IAS 19, see accounting policies p. 15

8) For 2013; Dividend motioned by the Board of Directors.

For definitions of key figuers, see p. 25 and Annual Report 2012, p. 113.

NCC in brief

VISION

NCC's vision is to be the leading company in the development of future environments for working, living and communication.

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. This level has been established to generate a healthy return for NCC's shareholders and to provide NCC with the potential to invest in its core 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. Both operative and financial synergies exist between the businesses. 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
Construction and civil engineering				Industrial	Development
NCC Construction Sweden	NCC Construction Denmark	NCC Construction Finland	NCC Construction Norway	NCC Roads	NCC Housing	NCC Property Development
		Finland Estonia Latvia S:t Petersburg		Sweden Denmark Finland Norway S:t Petersburg	Sweden Denmark Finland Norway Germany Estonia Latvia S:t Petersburg	Sweden Denmark Finland Norway Estonia Latvia

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 Internet and 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 Swedish. To participate in this teleconference, call +46 (0)8-505 564 74, five minutes prior to the start of the conference.

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 distributed to the media for publication on Thursday January 30, 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 portion pertaining to noncontrolling 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 rewards 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.