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AFRY

Quarterly Report Apr 26, 2013

2875_10-q_2013-04-26_37fc652e-b080-4c13-bf58-ce9f8bbf564b.pdf

Quarterly Report

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ÅF Interim report Jan - March 2013

Press release 26 April 2013

First quarter 2013

  • Net sales totalled SEK 2,125 million (1,407)
  • Operating profit totalled SEK 166 million (127)
  • Operating profit, excluding integration cost, totalled SEK 183 million (127)
  • Operating margin, excluding integration cost, was 8.6 percent (9.0)
  • Profit after tax totalled SEK 121 million (92)
  • Earnings per share, before dilution: SEK 3.04 (2.72)

A few words from the President, Jonas Wiström

ÅF's first-quarter operating profit in 2013, excluding integration costs, rose by 44 percent to SEK 183 million (127). Integration costs for the first quarter totalled SEK 17 million. The first quarter comprised two fewer working days than the corresponding period last year, and this has been calculated to have had a negative effect on earnings of approximately SEK 20 million.

Epsilon, which was acquired towards the end of 2012, has been trading under the ÅF brand since 1 January, and work on integrating consulting operations is developing well. The merger has significantly strengthened ÅF's market position and its potential to win major assignments in research-intensive industries. Initiatives to realise cost synergies have exceeded expectations; we now estimate that cost synergies will be in excess of SEK 75 million a year, compared with our original estimate of SEK 50 million. To achieve these extra synergies the total integration costs have been recalculated at approximately SEK 50 million instead of the previously communicated figure of SEK 30 million. These costs will be charged to firsthalf profit.

For the first quarter of the year ÅF's operating margin, excluding integration costs, was 8.6 percent (9.0). The main explanation for this slight dip in operating margin is weaker demand in terms of investments in industry and energy than we saw in the corresponding period in 2012.

Growth in the first quarter was approximately 50 percent, mostly attributable to the acquisition of Epsilon and the Norwegian consulting company, Advansia. Organic growth was 2 percent, although this equates to 5 percent when adjusted to take account of the lower number of working days.

Cash flow from operating activities was weaker than usual, but this can be explained by the build-up of working capital, primarily in the Infrastructure Division.

The highest level of profitability was reported by the Infrastructure Division with an operating margin of 13.8 percent (12.2); operating profit for the division rose by approximately 50 percent and growth was good. The Industry and Technology divisions began to feel the effect of weaker demand in the market, which was reflected in operating margins of 7.6 percent (11.0) and 8.3 percent (12.1) respectively, while the International Division, which continued to work in what remains a weak market in Europe, reported an operating margin of 3.1 percent (2.0).

The market prospects for the remainder 2013 do not present a uniform picture. While the outlook would appear to remain very good for infrastructure projects, the prospects for investments in industry and energy are less certain.

Interest in ÅF as an employer remains very strong. In March ÅF was named as the consulting industry's most attractive employer and was recently ranked among Sweden's Top Ten Employers, all categories, by Swedish engineering students in a Universum survey.

ÅF's most important objective is to continue to generate levels of profitability that place us among the very best performers in our industry – regardless of the state of the economy. The company now has 7,000 highly qualified employees, backed up by a network of 17,000 independent consultants. Our ambition is to continue to grow, both organically and through acquisitions, without compromising profitability.

Stockholm, Sweden – 26 April 2013

Jonas Wiström President and CEO

Net sales and earnings, January-March 2013

Net sales for the quarter totalled SEK 2,125 million, an increase of 51 percent compared with the figure of SEK 1,407 million for the corresponding period last year. Acquired growth accounted for 49 percentage points, and organic growth for 2 percentage points. However, if an adjustment is made for the fact that the first quarter this year was two working days shorter than in 2012, organic growth rises to 5 percent. Organic growth at divisional level, adjusted for the effect of two fewer working days, was 8 percent for the Infrastructure Division and 6 percent for Industry Division. The organic growth for Division International was 3 percent and for Division Technology 2 percent.

Demand throughout the reporting period remained good for the Infrastructure Division, which reported overall growth, including acquired business, of 32 percent. Demand for the services of the Industry and Technology divisions fell, while the market for the International Division remained weak.

Operating profit totalled SEK 166 million (127). Operating profit excluding integration costs rose to SEK 183 million (127), and the corresponding figure for operating margin was 8.6 percent (9.0). The effect of fewer working days in the first quarter

of this year compared with the first quarter of last year was approximately SEK 20 million.

Integration costs relating to the acquisition of Epsilon are now estimated to be approximately SEK 50 million; SEK 17 million of this total has been charged to the first quarter and the remainder will be charged to the second quarter. Integration costs are booked under "Other" in the summary of segment reporting, which means that no costs have been charged or will be charged to the divisions. The cost synergies, which were previously estimated to amount to SEK 50 million, are now expected to exceed SEK 75 million. The synergies will contribute successively to profits in 2013 and 2014, before the full effect is felt from 2015 onwards.

The capacity utilisation rate was 74.8 percent (73.9).

Profit after financial items was SEK 154 million (127). Profit after tax totalled SEK 121 million (92). Earnings per share were SEK 3.04 (2.72).

Jan--Mar Jan-Mar Full year
KEY RATIOS 2013 2012 2012
Net sales, MSEK 2,125.0 1,407.2 5,796.4
Operating income, MSEK 2,126.0 1,407.7 5,798.8
Operating profit, MSEK 165.8 126.8 480.5
Operating margin, % 7.8 9.0 8.3
Operating profit, excluding integration cost, MSEK 1) 182.8 126.8 480.5
Operating margin, excluding integration cost, % 8.6 9.0 8.3
Profit after financial items, MSEK 153.9 127.0 476.6
Profit after tax, MSEK 120.6 92.4 353.3
Earnings per share, before dillution, SEK 3.04 2.72 10.13
Return on equity, % 13.3 13.4 13.3
Return on capital employed, % 15.0 17.0 15.7
Average number of full-time employees, FTEs 6,554 4,557 4,808
Capacity utilisation rate, % 74.8 73.9 74.2

1) Integration costs in connection with the acquisition of Epsilon, SEK 17 million.

Important events during Q1 2013 and after the reporting date

ÅF Spain signed an agreement with the Inter-American Development Bank, IDB, to assess the feasibility of energy exchanges between Bolivia, Chile, Colombia, Ecuador and Peru. According to the agreement, which for ÅF is worth USD 1 million, ÅF and its local partner, SIGLA, are tasked with evaluating the technical and financial feasibility of linking these different national electricity grids and with furnishing IDB with guidelines for how an energy exchange should be structured and regulated.

ÅF signed a framework agreement with the Swedish Defence Materiel Administration, FMV. Based on FMV's estimates of order volumes, the agreement should be worth SEK 70 million over seven years. As part of the Swedish Defence Materiel Administration's procurement of services in the field of Command & Control Systems, ÅF won rights within the framework agreement as sole supplier of services in the area of Sensors. The agreement will run for an initial three years with an option to extend collaboration for a further four years. ÅF will now be recruiting specialists with system competence in sensors and those with operational and systems competence in military command and control systems. ÅF will also partner Combitech in the technical areas of Transmission and Verification/Validation.

Fredrik Nylén was appointed as the new President of ÅF's Technology Division, taking up his position on 1 April, after having previously served as Vice President of ÅF's Industry Division since 2010. Fredrik is 41 years old, with a degree in Business Administration & Economics from Uppsala University, a B.Sc. in Engineering from Sweden's KTH Royal Institute of Technology, and a solid background in the industry. He joined ÅF in 2008 after having held a variety of managerial positions over an eight-year period with Sweco.

Net sales, MSEK Operating profit, MSEK / Operating margin, % *)

Cash flow and financial position

Cash flow from operating activities totalled SEK 43 million (136). The reduction in cash flow is a consequence of the buildup of working capital, which in turn is an effect of increased volumes in the Infrastructure Division and fluctuations in project business in Russia. Corporate acquisitions and additional considerations paid totalled SEK 23 million (14). The net of borrowing and amortisation of loans had an effect on cash flow of SEK -230 million (-9).

Group liquid assets totalled SEK 268 million (441) at the end of the reporting period. The net debt was SEK 867 million, as opposed to net cash of SEK 235 million in Q1 2012. ÅF AB has unutilised credit facilities amounting to SEK 781 million.

Equity at the end of the reporting period was SEK 3,487 million (2,537). Equity per share was SEK 88.97 (75.12). The equity ratio was 48.5 percent (59.6).

Number of employees

The average number of full-time equivalents was 6,554 (4,557). The total number of employees at the end of the reporting period was 6,930 (4,835): of these 5,292 (3,325) were employed in Sweden and 1,638 (1,510) outside Sweden.

Parent company

Parent company operating income for the period January– March totalled SEK 96 million (92) and relates chiefly to internal services within the Group. Profit after net financial items was negative at SEK -16 million (-10). Dividends from subsidiaries and associates totalled SEK 14 million (0). Cash and cash equivalents totalled SEK 16 million (90).

Industry Division

The market for the Industry Division's services contracted during the course of the first quarter, with the drop in demand being particularly noticeable among clients in the mining, steel and automotive industries.

To mitigate the effects of this weaker demand a number of measures were initiated, including a reallocation of resources and an increase in sales activities. The division's operating margin for the first quarter was 7.6 percent (11.0), the dip being attributable primarily to a lower capacity utilisation rate.

Selective recruitment is still taking place in all business areas, with the main focus on energy, process optimisation, electric power and automation.

Towards the end of the quarter capacity utilisation did pick up somewhat and there was an improvement in terms of orders. For example, the division signed an agreement with the operator of the Swedish national grid (Svenska Kraftnät) to supply project management services for the South West Link, a major investment to reinforce the AC network in southern Sweden. An agreement was also signed with Statkraft Sverige to replace the control systems at a small number of hydropower plants.

During the course of the first quarter almost 300 Epsilon consultants were integrated into the Industry Division. Among these were significant numbers of design and analysis engineers with extensive international experience of calculations, etc. for the automotive, energy, steel, food, life science and other industries. Together with Industry's own consultants, these now constitute the Nordic region's largest nucleus of consulting expertise for advanced calculations and simulations.

About the Industry Division:

The Industry Division is the Nordic region's leading consultant in process and production systems. Its mission is clear: to improve profitability for its clients. Experience from previous projects guarantees stability, competitive strength and peace of mind for clients. Geographical proximity to clients and a thorough understanding of the sectors in which they work are the most important foundations for long-term client relations.

Key ratios - Industry Jan-Mar
2013
Jan-Mar
2012
Full year
2012
Operating income, MSEK 535.9 429.9 1,662.0
Operating profit, MSEK 40.5 47.5 194.8
Operating margin, % 7.6 11.0 11.7
Average number of full-time employees, FTEs 1,747 1,308 1,342

Infrastructure Division

Throughout the first quarter the market for the Infrastructure Division remained good on the back of sustained and relatively high levels of investment in new infrastructure in the Nordic region. The division enjoys a leading position in all three of Sweden's major metropolitan regions. Growth in the first quarter topped 30 percent, thanks chiefly to the acquisition of the Norwegian consulting company, Advansia.

The division improved its operating profit by 50 percent and the operating margin rose to 13.8 percent (12.2). The improved profit is a result of increasing volumes and a rise in capacity utilisation. The business areas responsible for the greatest improvements in earnings were Project Management and Urban & Regional Planning. The integration of Advansia, which now forms part of the division's Project Management services, is proceeding well and according to plan.

The largest business area, Buildings, with a total of approximately 800 employees in Sweden and Norway, continued to report good profitability. One of the forces driving this particular market is the need to improve energy efficiency in existing properties.

The division is currently involved in a number of large projects, including the expansion of Oslo Gardermoen Airport in Norway, the Stockholm Bypass, the City Line tunnel in Stockholm, the West Link rail tunnel in Gothenburg, and the New Karolinska University Hospital in Solna for Skanska Healthcare.

The influx of orders remained good during the first quarter. For example, there was an extension to an agreement for expert services relating to signalling technology and the future maintenance of the Öresund Bridge, a new order from ABB, and framework agreements with the Swedish Transport Administration, the City of Gothenburg and Telge AB.

About the Infrastructure Division:

The Infrastructure Division enjoys a leading position in the Scandinavian market for technical solutions for infrastructure projects. The division's strengths include a portfolio of services that offer clients sustainable, hi-tech solutions. Thanks to its ability to develop innovative solutions that boost client profitability and target fulfilment, the division is continuously enhancing its market potential.

Jan-Mar Jan-Mar Full year
Key ratios - Infrastructure 2013 2012 2012
Operating income, MSEK 595.6 451.2 1,892.1
Operating profit, MSEK 82.2 55.0 207.2
Operating margin, % 13.8 12.2 10.9
Average number of full-time employees, FTEs 1,602 1,331 1,435

International Division

The market for international energy projects was relatively weak in the first quarter in the wake of declining energy consumption, difficulties in financing investments and a lack of political clarity about future energy solutions.

Demand was strongest in the areas of renewable energy and hydropower and for political investigations into improving the efficiency of the energy market.

Nevertheless, thanks to improvements in earnings both in Switzerland, which accounts for 25 percent of the division's revenues, and in Spain, the International Division was able to report an increase in profitability for the first quarter, with the operating margin rising to 3.1 percent (2.0).

The profitability of the division's operations in Finland, however, remained weak. A programme of measures has been initiated to tackle this situation, including downsizing the workforce, and it is expected that the positive effects will start to become noticeable from the second quarter onwards.

Incoming orders for the division were satisfactory in the first three months. Among the agreements signed were those relating to a thermal power plant project in Bosnia, a hydropower project in Vietnam and an expansion of the scope of an existing contract with a leading manufacturer of generators and turbines in Russia.

One clear market trend is an increase in demand for services relating to efficiency improvements in existing power plants, an area of expertise in which the International Division has a strong market position and an extensive track record of success.

About the International Division:

The International Division offers technical consulting services, primarily in the energy and infrastructure sectors. The division's domestic markets are Switzerland, Finland and the Baltic countries, Russia, the Czech Republic and Spain, but it also performs projects in around 70 countries worldwide. The division enjoys a strong position in many areas of technical expertise and is well established as a world-leader among independent consulting companies in the nuclear power sector.

Jan-Mar Jan-Mar Full year
Key ratios - International 2013 2012 2012
Operating income, MSEK 331.1 330.3 1,307.1
Operating profit, MSEK 10.2 6.7 54.6
Operating margin, % 3.1 2.0 4.2
Average number of full-time employees, FTEs 1,132 1,149 1,138

Technology Division

The Technology Division is active in what, in the first quarter, continued to be a good market for advanced product development and defence technology. The exceptions here are the telecommunications and automotive industries; they have gradually cut back on their purchases of consulting services over recent quarters, and this trend showed no signs of changing during the first three months of the year.

The first-quarter operating margin was 8.3 percent (12.1), a dip in profitability that can most adequately be explained by a lower capacity utilisation rate than during the corresponding period last year.

The strongest progress was made in the south of Sweden, where the division has approximately 400 employees. Defencerelated activities also performed satisfactorily. Among new orders were those with Saab and the Swedish Defence Materiel Administration (FMV), with whom framework agreements were signed both in the field of Command & Control Systems and also for registration and the maintenance of databases. The division continues to capture new shares of the defence industry market thanks to its in-depth knowledge in areas such as simulation technology and communications.

The Technology Division also won new consulting agreements with GE Healthcare, Electrolux, Scania and Volvo Car Corporation during the reporting period. ÅF has been appointed as one of only a handful of Tier 1 suppliers to Volvo Car Corporation in a new agreement for services in the areas of product development (embedded systems/mechanical design) and technical calculation and design. In addition ÅF won a small number of fairly large-scale work packages in the first quarter relating to mechanical design services for the Volvo Group's power train activities.

On 1 January the Technology Division merged with some 1,400 consultants from Epsilon, increasing the total workforce in the new division to approximately 2,000 and creating a marketleader in advanced product development in Sweden with a broad client base. Work on integrating operations is proceeding according to plan, and clients are already being dealt with jointly across a broad spectrum of operations.

About the Technology Division:

The Technology Division is active mainly in Sweden, where it is a leading name in Swedish product development and defence technology. A firm base and a long track record of success provide stability and give clients peace of mind. The Technology Division also has strong offers within its specialist fields relating to various aspects of sustainability.

Jan-Mar Jan-Mar Full year
Key ratios - Technology 2013 2012 2012
Operating income, MSEK 689.8 240.0 898.9
Operating profit, MSEK 57.3 29.1 84.5
Operating margin, % 8.3 12.1 9.4
Average number of full-time employees, FTEs 1,986 705 703

Risks and uncertainty factors

The significant risks and uncertainty factors to which the ÅF Group is exposed include business risks linked to the general economic situation and the propensity of various markets to invest, the ability to recruit and retain qualified co-workers, and the potential impact of political decisions. In addition, the Group is exposed to writedowns in fixed-price contracts as well as to a number of financial risks, including currency risks, interest-rate risks and credit risks. The risks to which the Group is exposed are described in detail in ÅF's Annual Report for 2012. No significant risks are considered to have arisen since the publication of the annual report.

Accounting principles

This report has been prepared in accordance with IAS 34, "Interim Financial Reporting". The accounting principles are in conformity with International Financial Reporting Standards (IFRS), as well as with the EU approved interpretations of the relevant standards, the International Financial Reporting Interpretations Committee (IFRIC) and Chapter 9 of the Swedish Annual Accounts Act. The report has been drawn up using the same accounting principles and methods of calculation as those in the Annual Report for 2012 (see Note 1, page 73), with the exception of the changes described below.

Amendment to IAS 19, "Employee benefits". For ÅF, this amendment means first and foremost that returns on plan assets are to be based on the discount rate used for calculating pension obligations. The difference between real and calculated return on plan assets is recognised in other comprehensive income. The effect of this is insignificant.

Amendment to IAS 1, "Presentation of financial statements". This amendment involves a change in the grouping of transactions in other comprehensive income. Items that may be reclassified to profit or loss are to be presented separately from items that will not. This does not alter the actual content of other comprehensive income, but solely the presentation.

New IFRS 13, "Fair value measurement". This makes additional requirements on the information contained in interim reports. For the current reporting period, however, there have been no significant changes that would require such information to be provided.

The parent company has implemented the Swedish Financial Reporting Board's Recommendation RFR 2, which means that the parent in the legal entity shall apply all EU approved IFRS and related statements as far as this is possible, while continuing to apply the Swedish Annual Accounts Act and the Pension Obligations Vesting Act and paying due regard to the relationship between accounting and taxation.

ÅF shares

The ÅF share price at the end of the reporting period was SEK 192.50; this represents an increase in value of 24 percent since the start of the year. During the same period the Stockholm Stock Exchange's OMXSPI index rose by 9 percent.

In order to offset the possible dilution effect of the 2012 Staff Convertible Programme, share capital was reduced through the cancellation on 29 January 2013 of class B shares in accordance with the resolution of the 2012 Annual General Meeting. Prior to this, the number of shares in the company had totalled 40,044,917, which corresponded to 54,524,801 votes. Now the number of shares has been reduced by 558,782 to a total of 39,486,135 shares, reducing the number of votes to 53,966,019.

Stockholm, Sweden – 26 April 2013.

Jonas Wiström President and CEO ÅF AB (publ)

Financial reports – 2013

12 July Interim Report January–June 2013
21 October Interim Report January–September 2013

The Annual General Meeting will commence at 14.00 (2 p.m.) C.E.T. on 26 April 2013 at ÅF's head office.

For further information, please contact:

President and CEO, Jonas Wiström, +46 70 608 12 20 CFO, Stefan Johansson, +46 70 224 24 01 Director, Corporate Information, Viktor Svensson, +46 70 657 20 26

Group Head Office: ÅF AB, SE-169 99 Stockholm, Sweden Visitors' address: Frösundaleden 2, 169 70 Solna, Sweden Tel. +46 10 505 00 00 Fax +46 10 505 00 10 www.afconsult.com / [email protected] Corporate ID number 556120-6474

This report has not been subjected to scrutiny by the company's auditors.

The information in this interim report fulfils ÅF AB's disclosure requirements under the provisions of the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was released for publication at 11:00 CET on 26 April 2013.

All assumptions about the future that are made in this report are based on the best information available to the company at the time the report was written. As is the case with all assessments of the future, such assumptions are subject to risks and uncertainties, which may mean that the actual outcome differs from the anticipated result.

This is a translation of the Swedish original. The Swedish text is the binding version and shall prevail in the event of any discrepancies.

CONSOLIDATED INCOME STATEMENT

(in millions of SEK) Jan-Mar Jan-Mar Full year Apr 2012-
2013 2012 2012 Mar 2013
Net sales 2,125.0 1,407.2 5,796.4 6,514.2
Other operating income 0.9 0.4 2.4 2.9
Operating income 2,126.0 1,407.7 5,798.8 6,517.1
Personnel costs -1,166.7 -814.9 -3,250.2 -3,602.0
Purchase of services and goods -600.1 -300.8 -1,375.6 -1,674.9
Other costs -174.7 -151.9 -635.7 -658.5
Depreciation/amortisation -18.7 -13.3 -57.6 -63.0
Share of associated companies' profit/loss 0.1 0.0 0.7 0.8
Operating profit 165.8 126.8 480.5 519.6
Net financial items -11.9 0.2 -3.9 -16.0
Profit after financial items 153.9 127.0 476.6 503.6
Tax -33.3 -34.6 -123.3 -122.0
Profit after tax 120.6 92.4 353.3 381.6
Attributable to:
Shareholders in parent company 118.8 91.5 345.0 372.3
Non-controlling interest 1.8 0.8 8.3 9.3
Profit after tax 120.6 92.4 353.3 381.6
Operating margin, % 7.8 9.0 8.3 8.0
Capacity utilisation rate (invoiced time ratio), % 74.8 73.9 74.2 74.5
Earnings per share before dilution. SEK 3.04 2.72 10.13
Earnings per share after dilution, SEK 3.00 2.70 10.02
Number of shares outstanding 39,022,135 33,595,002 39,022,135
Average number of outstanding shares before dilution 39,022,135 33,655,131 34,065,811
Average number of outstanding shares after dilution 39,914,743 33,923,758 34,610,208

CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME Jan-Mar Jan-Mar Full year
(in millions of SEK) 2013 2012 2012
Items that may be reclassified subsequently to profit or loss
Change in translation reserve for the period -65.6 1.5 -25.9
Cash flow hedging 0.3 0.1 0.8
Tax -0.1 - -4.4
Items that will not be reclassified to profit or loss
Pensions 8.4 - 22.4
Tax -1.7 - -4.4
Total other comprehensive income for the period -58.6 1.5 -7.2
Profit for the period 120.6 92.4 353.3
Total comprehensive income for the period 62.0 93.9 346.1
Total comprehensive income attributable to:
Shareholders in parent company 60.5 93.5 338.0
Non-controlling interest 1.5 0.4 8.1
Total 62.0 93.9 346.1
CONSOLIDATED BALANCE SHEET 31 Mar 31 Mar 31 Dec
(in millions of SEK) 2013 2012 2012
Assets
Non-current assets
Intangible assets 4,246.5 1,717.0 4,263.4
Tangible assets 269.2 285.2 279.3
Other non-current assets 20.9 53.3 23.7
Total non-current assets 4,536.6 2,055.4 4,566.3
Current assets
Current receivables 2,390.5 1,760.3 2,451.9
Cash and cash equivalents 267.6 440.9 497.7
Total current assets 2,658.0 2,201.2 2,949.6
Total assets 7,194.6 4,256.7 7,515.9
Equity and liabilities
Equity
Attributable to shareholders in parent company 3,471.8 2,523.5 3,407.3
Attributable to non-controlling interest 15.0 13.1 14.3
Total equity 3,486.7 2,536.6 3,421.5
Non-current liabilities
Provisions 258.1 181.7 267.6
Non-current liabilities 1,300.9 116.0 1,431.8
Total non-current liabilities 1,559.0 297.7 1,699.4
Current liabilities
Provisions 5.2 4.1 4.6
Current liabilities 2,143.7 1,418.3 2,390.3
Total current liabilities 2,148.9 1,422.3 2,394.9
Total equity and liabilities 7,194.6 4,256.7 7,515.9

Pledged assets and Contingent liabilities are essentially the same as in the annual accounts for 2012.

CHANGES IN EQUITY 31 Mar 31 Mar 31 Dec
(in millions of SEK) 2013 2012 2012
Equity at start of period 2,450.2 2,450.2
Total comprehensive inocme for the period 62.0 93.9 346.1
Dividends - - -173.6
Share buy-backs - - -94.4
Non-cash issue - -10.1 879.9
Issue cost - - -5.5
Value of conversion right - - 7.1
Acquisition of non-controlling interest - -0.9 -0.9
Divestment of non-controlling interest -0.8 - -
Share savings programmes 4.0 3.5 12.5
Equity at end of period 3,486.7 2,536.6 3,421.5
Attributable to:
Shareholders in the parent company 3,471.8 2,523.6 3,407.3
Non-controlling interest 15.0 13.1 14.3
Total 3,486.7 2,536.6 3,421.5
CASH FLOW ANALYSIS Jan-Mar Jan-Mar Full year
(in millions of SEK) 2013 2012 2012
Profit after financial items 153.9 127.0 476.6
Adjustment for items not included in cash flow and other 24.0 16.5 81.0
Income tax paid -35.9 -39.7 -128.2
Cash flow from operating activities
before change in working capital 142.1 103.8 429.3
Cash flow from change in working capital -98.7 32.4 53.4
Cash flow from operating activities 43.4 136.2 482.7
Cash flow from investing activities -33.3 -22.9 -1,225.6
Cash flow from financing activities -229.7 -18.6 901.8
Cash flow for the period -219.6 94.7 158.9
Cash and cash equivalents brought forward 497.7 345.3 345.3
Exchange rate difference in cash/cash equivalents -10.6 1.0 -6.6
Cash and cash equivalents carried forward 267.6 440.9 497.7
Jan-Mar Jan-Mar Full year
KEY RATIOS 2013 2012 2012
Return on equity, % 13.3 13.4 13.3
Return on capital employed, % 15.0 17.0 15.7
Equity ratio, % 48.5 59.6 45.5
Equity per share, SEK 88.97 75.12 87.32
Net debt (-) /Net cash (+), MSEK -866.8 235.3 -876.9
Net debt-equity ratio, % 24.9 N/A 25.6
Interest-bearing liabilities, MSEK 1,134.4 205.6 1,374.6
Average number of employees (FTEs) excl. associated companies 6,554 4,557 4,808

QUARTERLY INFORMATION BY DIVISION

Operating income 2012 2013
(in millions of SEK) Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year
Industry 429.9 407.9 359.1 465.2 1,662.0 535.9
Infrastructure 451.2 451.7 366.7 622.5 1,892.1 595.6
International 330.3 289.2 299.8 387.8 1,307.1 331.1
Technology 240.0 235.7 175.3 247.8 898.8 689.8
Other/eliminations -43.7 -24.9 -16.9 124,3 1) 38.8 -26.5
Total 1,407.7 1,359.6 1,184.0 1,847.6 5,798.8 2,126.0
Operating profit/loss 2012 2013
(in millions of SEK) Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year
Industry 47.5 49.4 37.3 60.7 194.8 40.5
Infrastructure 55.0 49.0 26.7 76.5 207.2 82.2
International 6.7 14.8 10.0 23.0 54.6 10.2
Technology 29.1 18.9 10.1 26.4 84.5 57.3
Other/eliminations -11.5 -9.6 -9.4 -30,1 1) -60.6 -24.5
Total 126.8 122.4 74.8 156.5 480.5 165.8
Operating margin 2012 2013
(%) Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year
Industry 11.0 12.1 10.4 13.0 11.7 7.6
Infrastructure 12.2 10.8 7.3 12.3 10.9 13.8
International 2.0 5.1 3.3 5.9 4.2 3.1
Technology 12.1 8.0 5.8 10.7 9.4 8.3
Total 9.0 9.0 6.3 8.5 8.3 7.8
Employees 2012 2013
(FTEs) Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year
Industry 1,308 1,337 1,332 1,394 1,342 1,747
Infrastructure 1,331 1,400 1,426 1,587 1,435 1,602
International 1,149 1,153 1,115 1,141 1,138 1,132
Technology 705 708 690 708 703 1,986
ÅF AB1) 63 71 78 539 1) 190 88
Total 4,557 4,668 4,642 5,369 4,808 6,554
Number of working days 2012 2013
Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year
Sweden only 64 59 65 62 250 62 60 66 61 249
All countries 63 59 65 62 250 61 60 2) 66 2) 61 2) 248

1) Epsilon is included in figures for Q4. With effect from January 2013 Epsilon is included in Technology Division and Industry Division.

2) Calculated weighted average.

ACQUIRED COMPANIES' NET ASSETS AT TIME OF ACQUISITION

(in millions of SEK) Jan-Mar
Date of acquisition 2013
Tangible non-current assets 0.4
Accounts receivable and other receivables 8.2
Cash equivalents 8.1
Accounts payable and other liabilities -8.1
Net identifiable assets and liabilities 8.6
Goodwill 34.5
Fair value adjustment intangible assets 3.0
Fair value adjustment non-current provisions -0.8
Purchase price incl estimated additional consideration 45.3
Transaction costs 0.9
Deduct:
Cash (acquired) 8.1
Estimated additional consideration 15.1
Net outflow of cash 23.0

Acquisition analyses are preliminary as the assets in the companies acquired have not been definitively analysed. In the case of the above acquisitions, the purchase price has been greater than the assets recognised in the companies acquired: as a result, the acquisition analysis has created intangible assets. The acquisition of a consulting business involves in the first instance the acquisition of human capital in the form of the skills and expertise of the workforce: thus, the greater part of the intangible assets in the companies acquired is attributable to goodwill. The acquisitions refer to Hjertnes Byggrådgivning AS in Norway, Konfem AB in Sweden and some smaller acquisitions of business operations in Sweden and Norway.

INCOME STATEMENT PARENT COMPANY Jan-Mar Jan-Mar Full year
(in millions of SEK) 2013 2012 2012
Net sales 61.9 61.7 246.2
Other operating income 34.0 30.6 127.5
Operating income 95.9 92.2 373.7
Personnel costs -20.5 -19.4 -83.6
Other costs -89.4 -78.0 -325.2
Depreciation -3.7 -3.1 -13.6
Operating profit/loss -17.7 -8.3 -48.7
Net financial items 2.1 -1.6 123.8
Profit/loss after financial items -15.6 -10.0 75.1
Appropriations - - 335.7
Pre-tax profit/loss -15.6 -10.0 410.8
Tax 6.2 2.6 -67.0
Profit/loss after tax -9.4 -7.4 343.8
BALANCE SHEET PARENT COMPANY 31 Mar 31 Mar 31 Dec
(in millions of SEK) 2013 2012 2012
Assets
Non-current assets
Participations in Group and Associated companies 5,219.3 2,452.5 5,225.8
Intangible assets 10.3 4.1 9.4
Tangible assets 53.1 56.6 53.8
Financial assets 22.2 25.2 22.2
Total non-current assets 5,304.8 2,538.5 5,311.2
Current assets
Current receivables 282.4 271.4 659.8
Cash and cash equivalents 16.3 90.2 39.3
Total current assets 298.8 361.7 699.1
Total assets 5,603.5 2,900.2 6,010.3
Equity and liabilities
Equity
Share Capital 197.4 170.3 200.2
Statutory reserve 46.9 46.9 46.9
Non-restricted equity 3,117.4 2,158.9 2,770.8
Profit/loss for the period -9.4 -7.4 343.8
Total equity 3,352.4 2,368.7 3,361.8
Untaxed reserves 126.4 29.6 126.4
Non-current liabilities
Provisions 613.8 86.6 618.0
Non-current liabilities 643.1 0.2 779.8
Total non-current liabilities 1,257.0 86.7 1,397.8
Current liabilities
Provisions 51.1 9.8 54.2
Current liabilities 816.6 405.3 1,070.1
Total current liabilities 867.7 415.1 1,124.3
Total equity and liabilities 5,603.5 2,900.2 6,010.3

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