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Sweco

Interim / Quarterly Report Jul 17, 2012

2977_ir_2012-07-17_f725c0e6-8f5c-43f8-9b68-fda1546f620e.pdf

Interim / Quarterly Report

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17 July 2012

CONTINUED STRONG GROWTH WITH SOLID PROFITABILITY

APRIL - JUNE 2012

  • Net sales of SEK 1.943.1 million (1.506.7).
  • Operating profit of SEK 149.6 million (128.0).
  • Operating margin of 7.7 per cent (8.5).
  • Profit after tax of SEK 121.5 million (92.5) and earnings per share of SEK 1.32 (1.01).

JANUARY - JUNE 2012

  • Net sales of SEK 3,852.7 million (2,927.4).
  • Operating profit of SEK 380.9 million (264.6).
  • Operating margin of 9.9 per cent (9.0).
  • Profit after tax of SEK 286.0 million (189.6) and earnings per share of SEK 3.11 (2.08).
  • Net debt of SEK 509.0 million (74.6).

Comments from CEO Mats Wäppling:

"Sweco continues to perform well. Operating profit for the first half of the year reached SEK 381 million, up by 44 per cent compared to the same period of last year. Operating margin was 9.9 per cent. The best business area was Sweco Sweden, which posted an operating margin of 11.4 per cent.

"We have maintained our growth trajectory with overall growth of 32 per cent for the first half of the year, of which 14 percent organic. The higher volumes are mainly attributable to organic growth in Sweden and Norway and the acquisition of FMC Group in Finland.

"Demand for our services rose during the quarter. Most areas of operation are expected to enjoy sustained strong development, but there are increasing signals of weaker development in certain segments.

"Today Sweco has around 7,700 employees. With a profitability and financial strength at the absolute top of the industry, we have excellent potential to continue growing both organically and through additional acquisitions. Our wide service offering and leading market position give us a solid platform for favourable long-term development."

PROFIT AND FINANCIAL POSITION

Net sales and profit, January - June 2012

Consolidated net sales rose by 32 per cent to SEK 3,852.7 million (2,927.4). Organic growth was 14 per cent and acquisition-driven growth was 18 per cent.

Profit summary,
SEK M
Apr-Jun
2012
Apr- Jun
2011
Jan-Jun Jan-Jun
2012
2011
Sweco Sweden 94.7 113.6 233.2 219.7
Sweco Norway 20.2 16.4 88.6 54.0
Sweco Finland 29.5 2.9 45.3 4.8
Sweco Central &
Eastern Europe
1.7 0.6 4.3 $-2.6$
Sweco Russia $-3.0$ 1.7 $-5.8$ 1.4
Sweco Industry 12.1 3.8 33.3 6.8
Group-wide, etc. $-5.6$ $-11.0$ $-18.0$ $-19.5$
Operating profit 149.6 128.0 380.9 264.6
Consolidated net
financial items
2.7 $-1.8$ $-3.5$ $-3.9$
Profit before tax 152.3 126.2 377.4 260.7

Operating profit was up by 44 per cent to SEK 380.9 million (264.6). The increase of SEK 116.3 million is explained mainly by higher volumes and the accretive effect of acquisitions.

Operating profit for Sweco Sweden rose by 6 per cent to SEK 233.2 million (219.7). The improvement in earnings is attributable to a continued stable market and rising volumes. Operating margin was 11.4 per cent (12.3).

Sweco Norway achieved a strong improvement in operating profit to SEK 88.6 million (54.0) and posted an operating margin of 9.7 per cent (7.8). This earnings growth is due to a favourable market, higher volumes from both acquisition-driven and organic growth and a better billing ratio.

Sweco Finland reported an operating profit of SEK 45.3 million (4.8) and a margin of 10.9 per cent (10.9). FMC Group, which is part of the business area since 1 February 2012, contributed net sales of SEK 364.1 million, an operating profit of SEK 40.1 million and an operating margin of 11.0 per cent.

The negative earnings trend in Russia is explained by a significantly weaker market in the infrastructure segment.

Sweco Industry has shown a major improvement in earnings compared to the previous year, mainly owing to improved demand in Finland.

Consolidated profit was negatively affected by acquisition-related costs of SEK 12.5 million (4.4) and amortisation of acquisition-related intangible assets of SEK 23.0 million (8.9).

Operating profit before amortisation of acquisitionrelated intangible assets (EBITA) was SEK 403.9 million (273.5) and the EBITA margin was 10.5 per cent (9.3).

The billing ratio, including all administrative personnel. was 74.5 per cent (73.5).

The number of normal working hours during the period was 972 (973).

Profit before tax was SEK 377.4 million (260.7). The Group's net financial items amounted to SEK-3.5 million (-3.9) and included foreign exchange effects of SEK 10.9 million (-1.0).

Profit after tax was SEK 286.0 million (189.6).

Return on equity was 32.5 per cent (23.7) and return on capital employed was 33.4 per cent (30.2).

No significant transactions with related parties took place during the period.

Earnings per share

Earnings per share amounted to SEK 3.11 (2.08) before dilution and SEK 3.11 (2.08) after dilution.

Investments

Investments in property, plant and equipment totalled SEK 58.6 million (44.2) and referred mainly to office furniture, computers and other IT investments. Depreciation of equipment amounted to SEK 43.1 million (36.3) and amortisation of intangible assets to SEK 27.5 million (12.1).

Consideration paid for the acquisition of companies amounted to SEK 781.3 million (125.1) and the effect on consolidated cash and cash equivalents was SEK $-528.3$ million $(-78.7)$ .

Cash flow and financial position

The Group's cash flow from operating activities was strong at SEK 228.3 million (80.0).

Cash and cash equivalents amounted to SEK 335.9 million (155.9). Disposable cash and cash equivalents including unutilised bank overdraft facilities at the end of the period totalled SEK 813.8 million (646.0). Interest-bearing debt is reported at SEK 844.9 million (230.3). The net interest-bearing liability was SEK 509.0 million (74.6).

During the year, dividends were paid to Sweco AB's shareholders in a total amount of SEK 274.0 million $(272.8)$ .

The net debt/equity ratio was 33.1 per cent (5.5). The equity/assets ratio was 31.7 per cent (42.1).

Employees

The number of employees at 30 June 2012 was 7,694 (5.999). The average number of employees in the Group during the period was 7,200 (5,597).

Net sales and profit, April - June 2012 Net sales rose by 29 per cent to SEK 1,943.1 million (1,506.7). Organic growth was 10 per cent and acquisition-driven growth was 19 per cent.

Operating profit was 149.6 million (128.0) and operating margin was 7.7 per cent (8.5).

Consolidated profit was negatively affected by acquisition-related costs of SEK 0.3 million (2.0) and amortisation of acquisition-related intangible assets of SEK 12.7 million (5.7).

Operating profit before amortisation of acquisitionrelated intangible assets (EBITA) was SEK 162.3 million (133.7) and the EBITA margin was 8.4 per cent $(8.9).$

The billing ratio was 75.1 (74.0).

The number of normal working hours during the period was 462 (471).

Profit before tax was SEK 152.3 million (126.2). Profit after tax was SEK 121.5 million (92.5).

Cash flow from operating activities amounted to SEK 148.7 million (80.7).

Parent Company, January - June 2012

The Parent Company recorded net sales of SEK 113.8 million (42.2), all of which refers to intra-group services. Profit after net financial items was SEK 8.9 million (31.9). Investments in equipment amounted to SEK 3.2 million (0.5) and cash and cash equivalents at the end of the period totalled SEK 0.2 million (0.0).

THE SWECO SHARE

Sweco is listed on NASDAO OMX Stockholm. The bid price for the Sweco B share at 30 June 2012 was SEK 72.75, an increase of 27 per cent during the year. The OMX Stockholm General Index rose by 3 per cent over the same period.

During the period, at the request of shareholders. 4.012 class A shares were converted to class B shares with the support of the conversion clause in the Articles of Association. The total number of votes thereafter is 17.595.182.3, of which 9.381.664 are attributable to class A shares and 8.213.518.3 are attributable to class B shares.

The total number of shares at the end of the period was 91,516,847, of which 9,381,664 were of class A and 82,135,183 were of class B. After deduction of treasury shares, the number of shares outstanding at 30 June 2012 was 91,342,847, of which 9,381,664 were of class A and 81,961,183 were of class B.

Treasury shares

Sweco holds a total of 174,000 class B treasury shares. The treasury shares correspond to 0.2 per cent of the total number of shares and 0.1 per cent of the votes.

OPERATIONS AND MARKET

The engineers, architects and environmental experts at Sweco are working together to contribute to the development of a sustainable society. With around 7.700 employees in 13 countries, the Sweco Group is one of the largest players in Europe. Every year, Sweco carries out projects in some 80 countries worldwide. Operations are conducted in six business areas: Sweco Sweden, Sweco Norway, Sweco Finland, Sweco Central & Eastern Europe, Sweco Russia and Sweco Industry.

Sweco is well positioned for profitable growth. The Group has market-leading positions in Sweden, Norway and Finland and solid niche positions in several countries in Central and Eastern Europe. Sweco's home markets have generally higher GDP growth and healthier public finances than the European average. With a profitability and financial strength at the top of the industry. Sweco has capacity to grow faster than the market average, both organically and through acquisitions.

The acquired operations in Finnish FMC Group are showing favourable development and contributing to improved performance for Sweco in terms of both growth and profitability. Sweco's Finnish units are increasingly working in joint assignments.

Demand for Sweco's services was good during the quarter. However, the financial turbulence in the Eurozone is also starting to affect market forecasts for the Nordic region and there is greater likelihood of a downturn in certain segments.

There are powerful drivers that are boosting long-term demand for consulting engineering services. These are related to urbanisation and rising living standards, which are among other things contributing to a need for infrastructure, industrial production, energy production and construction. At the same time, there are increasingly stringent requirements for sustainable development of society and adaptation to climate change. This is stimulating demand for services in areas like energy efficiency, environmental impact assessments, renewable energy solutions, effective traffic planning, water supply, wastewater treatment and soil/site remediation.

Sweco S Sweden

Net sales a
and profit
Apr
Jun
2012
Apr
r
Jun
n
2011
1
Jan
Jun
2012
J
Jan
Jun
2
2011
Net sales, S
SEK M
1,013.8 923.3
3
2,044.7 1,79
93.0
Operating p
profit, SEK M
94.7 113.6
6
233.2 2
19.7
Operating m
margin, %
No. of emp
loyees at end
of period
9.3 12.3
3
11.4
3,329
12.3
3
,055

Sweco Sw consulting largest bu some 50 Architectu Systems, Managem Institution project ex Asia, the weden is the c g engineering usiness area, locations. Ser ure, Structural Infrastructure ment, Energy S nal Services. S xports to coun Middle East a country's lead services and with around 3 rvices are offe l Engineering, e, Water & Env Systems, Geo Sweco Swede ntries in Easter and Latin Ame ing provider o the Group's ,300 employe ered in the are Building Serv vironment, Pro ographical IT a n has extensiv rn Europe, Afr erica. of ees in eas of vice oject and ve rica,

The mark stable dev remains p water sup for buildin although developm forecasts revised d offering in and stron ket for Sweco velopment du positive in mos pply, energy a ng-related serv there are incr ment in certain for new resid ownwards. Int n sustainable ng long-term d Sweden was ring the period st areas, such nd geographic vices is curren easing signals segments. Am ential product terest in Swec urban develop emand is anti characterised d. Demand h as infrastruct cal IT. The ma ntly favourable s of a weaker mong other th tion have been co's service pment is grow cipated. by ture, arket e, hings, n wing

In the sec plan a ne in Eksjö a for sustai Agency fo Stockholm construct spectacul Royal Op prepare a Weichang will be de become a other thin cond quarter S ew utility syste and to develop nable fishing o or Marine and m, Sweco has ion and projec lar restaurant pera House. In a development g, which borde eveloped into a a leading dest ngs. Sweco signed ms building at p a geographic on behalf of th Water Manag s been respons ct managemen building on th n China, Swec t plan for the c ers on Inner M a sustainable tination for eco agreements t t Högland Hos cal IT support he Swedish gement. In cen sible for nt for The Cub he roof of the co's architects county of Mula Mongolia. The region and o-tourism, amo to spital tool ntral be, a will an area ong

Swe eco Norway

Net s
sales and profit
Apr
Jun
2012
Apr
Jun
2011
Ja
an
Ju
un
20
12
Jan
Jun
2011
Net s
sales, SEK M
438.2 339.5 910
0.7
688.9
Oper
rating profit, SEK
K M
20.2 16.4 88
8.6
54.0
Oper
rating margin, %
4.6 4.8 9.7
9
7.8
No. o
of employees at e
end
of pe
riod
1,1
00
960

Swe cons busi Wat Infra eco is one of N sultancies, wit ness area is o er & Environm astructure, Bui Norway's large h 1,100 emplo organised in si ment, Building lding Service est engineering oyees. The No ix divisions: E & Constructio Systems and gorwegian nergy, on, Vest.

Tron since n Kjølhamar is e 14 May 201 s the new Pres 2. sident of Swec co Norway

Swe sust is no frien infra railw Swe certi serv and of th gene serv eco's Norwegia ained favoura oting strong de ndly residentia astructure area way networks a eco. A joint No ficate system vices related to wind power. A he country's w erating good lo vices. an operations ble market. Th emand for ene l and commer a, rising invest are creating a rwegian/Swed is leading to a o renewable e A continued ne ater and waste ong-term dem are experienc he constructio ergy-efficient a rcial properties tments in the a positive mark dish electricity a better marke energy, primar eed for moder tewater system mand for Swec cing a on sector and ecos. In the road and ket for yet for ily hydro rnisation ms is also co's

In th for d com area requ Norw for s fish carri cont man he second qua design manage plex for Watri a of 13,500 sq uirements for a wegian consul services in con oil factory in U ied out jointly tract, which en nagement and arter Sweco wa ement of an e um Eiendom. uare meters a a passive build ltants have als nnection with t Uruguay. The a with Sweco In ntails main res procurement as given respo eco-certified of The structure and will meet a ding. Sweco's so been comm the constructio assignment is ndustry under sponsibility for of contracting onsibility ffice e has an all the missioned on of a s being an EPCM r project g services.

Swe eco Finland

Net s
sales and profit
Apr
Jun
2012
Apr
Jun
2011
Ja
an
Ju
un
20
12
Jan
Jun
2011
Net s
sales, SEK M
259.3 23.9 415
5.3
44.0
Oper
rating profit, SEK
K M
29.5 2.9 45
5.3
4.8
Oper
rating margin, %
11.4 12.0 10
0.9
10.9
No. o
of employees at e
end
of pe
riod
1,3
36
68

As o emp of 1 February 2 ployees is part 2012, FMC Gr of the Sweco roup with arou o Finland busin und 1,250 ness

area. FMC Group offers services mainly in the areas of structural engineering, building service systems, industrial engineering, energy and environment. FMC Group is among other things the Finnish marketleader in structural engineering. The business area also includes Sweco PM with 78 employees, which primarily offers project management services to clients in the infrastructure, construction and industrial sectors.

Demand for Sweco's building-related services remained favourable during the period and the market for commercial and office properties was unchanged. For public facilities such as schools and hospitals. rising volumes are awaited. Development is also positive in the renovation, rebuilding and expansion sector, while the market for residential construction has weakened. Overall demand for Sweco's services is expected to remain stable.

Two new contracts during the quarter involved structural engineering of a new shopping centre in St. Petersburg with a total area of around 123,000 square meters and modernisation of the Itis shopping centre in Helsinki. Other assignments include project management for a new healthcare centre in Kangasala and renovation/rebuilding of a railway station in Kirkkonummi.

Sweco Central & Eastern Europe

Net sales and profit Apr-
Jun
2012
Apr-
Jun
2011
Jan-
Jun
2012
Jan-
Jun
2011
Net sales, SEK M 68.1 60.8 134.5 115.7
Operating profit, SEK M 1.7 0.6 4.3 $-2.6$
Operating margin, % 2.4 1.1 3.2 $-2.2$
No. of employees at end
of period
884 863

Sweco Central & Eastern Europe has close to 900 emplovees and is active in Estonia, Lithuania, Poland. the Czech Republic, Slovakia and Bulgaria.

The market situation in the business area is largely unchanged. The Baltic States and the Czech Republic are noting increased demand for Sweco's energy, water and environmental services. Demand in the Baltic region is also good with regard to infrastructure and industry-related assignments. In addition, Estonia is showing strong demand for project management services. In Poland, the water and environmental area remains positive while demand for services in the infrastructure market is weaker. Intense price competition is being felt throughout the business area, particularly in connection with public procurements.

The ongoing adaptation to EU standards in Central and Eastern Europe is continuing to benefit all of the business area's activities in the water and environment, energy and infrastructure areas.

In Estonia Sweco has won several new public transportation contracts, such as planning and design of a new LRT line and a study on future public transportation in Tallinn. In Lithuania, Sweco will carry out a study on waste management in the city of Marijampolé and in Poland, Sweco's architects have been awarded a planning and design contract for a residential project in Warsaw. Also in Poland, Sweco has been chosen to provide services for a new section of motorway between Brzesko and Krzyz. In Slovakia. Sweco will study expansion of the wastewater network in the city of Nitra and in Bulgaria, Sweco will perform a study on the water supply in the city of Straldzha.

Sweco Russia

Net sales and profit Apr-
Jun
2012
Apr-
Jun
2011
Jan-
Jun
2012
Jan-
Jun
2011
Net sales, SEK M 27.2 27.1 59.7 32.2
Operating profit, SEK M $-3.0$ 1.7 $-5.8$ 1.4
Operating margin, % $-11.1$ 6.2 $-9.7$ 4.4
No. of employees at end
of period
323 379

Sweco Russia has around 300 employees and offers services in Infrastructure and Water & Environment. Sweco Russia is also responsible for coordination of project exports from the other business areas to Russia.

Bo Carlsson is the new President of Sweco Russia since 1 May 2012.

In the wake of the Russian presidential election, a large number of projects have been postponed pending new decisions to move forward. This has primarily affected Sweco NIPI and Sweco IKTP, which are active in state-financed projects to a large extent. An improved market situation is expected in the second half of the year.

Russia has strong public finances and ongoing investment is anticipated in the infrastructure, water, energy and industrial areas.

Sweco was awarded a number of mid-sized contracts during the period, including additional assignments connected to construction of the new Skolkovo innovation centre outside Moscow, general planning of roads in Pskov and a feasibility study on the design of a new urban community for 60,000 residents outside St. Petersburg. Sweco has also won several new wastewater treatment contracts, for example in Sosnoviv Bor. Soartavala and Tscherepovets.

Sweco In ndustry

Net sales a
and profit
Apr
Jun
2012
Ap
pr
J
un
20
011
Jan
Jun
2012
Jan
Jun
2011
Net sales, S
SEK M
191.9 157
7.3
384.7 301.8
Operating p
profit, SEK M
12.1 3.8
3
33.3 6.8
Operating m
margin, %
6.3 2.4
2
8.7 2.3
No. of emp
loyees at end
of period
707 657

Sweco In industrial capabilitie project m developm employee Norway, S largest in Industry a Europe a with a foc petrochem industries dustry is the G consulting se es include stu anagement se ment of industr es in Finland, 2 Sweco Industr dustrial engin also has opera nd South Ame cus on the ene mical, pulp an s, as well as o Group's resou ervices. The bu dies, planning ervices for exp rial facilities. W 230 in Swede ry is one of the eering consult ations in Russ erica. The bus ergy, chemica d paper, minin ffshore projec rce for qualifie usiness area's g, engineering pansion and With some 450 n and 20 in e Nordic regio tancies. Swec sia, Eastern siness area wo l and ng and minera cts. ed sand 0on's co orks al cMau

The mark developm assignme new recru Norway h ket situation in ment. The shar ents is rising a uitment. Marke has also remai n Finland is sh re of large and and there is a g et developmen ined favourab owing stable d more long-te growing need nt in Sweden a le. erm for and

Investme South Am demand f Finland a investmen Swedish invest, ma industry h expected been see consulting petrochem nts in new pul merica and Ru for Sweco's in and Sweden. S nt in the minin pulp and pape ainly in existin has remained . An increase en in the energ g engineering mical industry lp and paper m ssia are expe ndustrial consu Sweden is not ng and energy er industry is a ng facilities. Th active and ne in the numbe gy sector. Dem services in th is relatively s mills in Asia, cted to stimula ultants in both ing continued y industries. Th also continuing he Finnish min w investments r of inquiries h mand for he chemical an table. ate he g to ning s are has nd

New cont projects f Gothenbu has perfo Finnish a projects t 2012. tracts won in t for clients such urg and Gazpr ormed a numb nd Swedish p hat are expec the second qu h as Andriz, M rom. In additio er of feasibility rocess indust cted to start in arter include Metso, the Port on, Sweco Ind y studies for th ries regarding the second ha rt of ustry he galf of

ACQUISI ITIONS

Acquisitio of employ 190 empl growth. ons during 201 yees in the Sw oyees have b 12 have increa weco Group by een added thr ased the numb y 1,180. A furt rough organic ber ther

During th architectu e quarter, Sw ural firm of Ark eco acquired kkitehtitoimisto the Finnish o Brunow & one unula Oy with of Finland's le 18 employees eading residen s. Brunow & M ntial architectu Maunula is ural firms.

ACC COUNTING PO OLICIES

Swe Acco thes Euro inter Inter Acco Boa Entit appl in No eco complies w ounting Stand se (IFRIC) that opean Commi rim report is pr rim Financial R ounts Act and rd's recomme ties. The acco ied by the Gro ote 1 of the an with the Interna ards (IFRS) a t have been en ssion for appli resented in ac Reporting, the the Swedish ndation RFR 2 ounting and va oup are the sa nnual report fo ational Financ and interpretat ndorsed by th ication in the E ccordance with e Swedish Ann Financial Rep 2, Accounting aluation standa ame as those or 2011. cial ions of e EU. This h IAS 34, nual porting for Legal ards described

RISK KS AND UNC CERTAINTIES S

The Swe busi inve attra of po diffe exch sign from repo significant ris eco Group and ness risks tied stment spend act and retain olitical decisio erent types of f hange risk, int ificant risks ar m those presen ort for 2011, "R ks and uncerta d the Parent C d to the genera ing in differen competent pe ns. The Group financial risk, s erest rate risk re assessed to nted on page 8 Risk managem tainties affectin Company inclu ral economic t nt markets, the ersonnel and th p is also expo such as foreig k and credit ris o have arisen 82 of Sweco's ment". ng the de rend and e ability to he effects osed to gn sk. No aside s annual

FINA ANCIAL CALE ENDAR 2012

Inter
rim report Jan
uary-Septemb
ber 5 Novem
ber 2012
Yea
r-end report 2
012
14 Febru
ary 2013

OUT TLOOK

The arch there for w amb stren and finan grow solid market for co hitectural servi e is a greater weaker develo bition is to ach ngthening its m in Central and nces, leading wth areas and d platform for s nsulting engin ces is current likelihood of a pment in certa ieve sustained market positio d Eastern Euro market positio wide offering stable long-ter neering and tly favourable, an increased p ain segments. d profitable gr ons in the Nord ope. Sweco's ons in several of services pr rm developme although probability . Sweco's owth by dic region healthy important rovide a ent.

For additional information contact:

Mats Wäppling, President & CEO
Telephone +46 8 695 66 07 / +46 70 645 03 21 [email protected]

Jonas Dahlberg, CFO Telephone +46 8 695 63 32 / +46 70 347 23 83 [email protected]

Bo Jansson, Senior Vice President Telephone +46 8 695 66 06 / +46 73 412 66 07 [email protected]

SWECO AB (publ) Corp. identity no. 556542-9841 Gjörwellsgatan 22, Box 34044, SE-100 26 Stockholm, Sweden Telephone +46 8 695 60 00, Fax +46 8 695 66 10 E-mail: [email protected] www.swecogroup.com

Sweco discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information
was submitted for publication on 17 July 2012, 11:15 CET.

The Board provides a operations uncerta d of Directors a true and fair s of the Parent inties to which and the CEO picture of the t Company an h the Parent C hereby give t e business act nd the Group, Company and their assuranc ivities, financia and describes the Group com e that this inte al position and s the significan mpanies are e erim report d results of nt risks and exposed.

Stockh holm, 17 July 2 2012

Olle Nord Chairman dström n

Anders G Board me G. Carlberg ember

G B Gunnel Duveb Board member lad J B Johan Nordstr Board membe röm er

Aina N Board Nilsson Ström d member

P B Pernilla Ström Board member rr

C B Carola Teir-Le Board membe ehtinen er

Kai W Board Wärn d member

Th Em homas Holm mployee repre esentative G E Göran Karloja Employee rep resentative Anna Emp a Leonsson ployee representative

M P B Mats Wäppling President & C Board membe g EO er

T This report ha as not been ex xamined by the e company's a auditors.

5.987.6
Net sales
1,943.1
1,506.7
3,852.7
2,927.4
6,912.9
$-459.2$
$-1,505.1$
Other external expenses
$-358.2$
$-876.8$
$-684.0$
$-1,697.9$
$-1.297.2$
$-994.2$
$-2,523.6$
$-1.929.5$
$-4.435.7$
$-3,841.6$
Personnel costs
Amortisation/depreciation and
$-37.1$
$-26.3$
$-71.4$
$-49.3$
$-131.7$
$-109.6$
impairment
Operating profit
149.6
128.0
264.6
380.9
647.6
531.3
Net financial items
2.7
$-3.9$
$-1.8$
$-3.5$
$-4.1$
$-4.5$
152.3
126.2
260.7
643.5
526.8
Profit before tax
377.4
$-30.8$
$-33.7$
$-91.4$
$-71.1$
$-172.3$
$-152.0$
Income tax expense
PROFIT FOR THE PERIOD
121.5
471.2
374.8
92.5
286.0
189.6
Profit for the period attributable to:
Owners of the Parent Company
120.3
92.1
284.0
189.3
468.2
373.5
1.2
0.4
2.0
0.3
3.0
1.3
Non-controlling interests
Earnings per share attributable to
owners of the Parent Company, SEK
1.32
- Basic
1.01
3.11
2.08
5.14
4.11
1.32
- Diluted
1.01
3.11
2.08
5.14
4.11
91,386,584
Average number of shares
91,342,847
90,941,274
90,944,024
91,079,526
90,858,246
Average number of shares after dilution
91,342,847
90,952,698
91,386,584
90,944,024
91,079,526
90,861,102
Dividend per share, SEK
3.00
Apr-Jun
Jan-Jun
Jan-Jun
Jul 2011 -
Full year
Statement of comprehensive income,
Apr-Jun
SEKM
2012
2011
2011
Jun 2012
2012
2011
121.5
92.5
286.0
189.6
471.2
374.8
Profit for the period
Translation differences
$-20.0$
$-16.9$
20.8
$-51.3$
$-13.6$
29.6
COMPREHENSIVE INCOME FOR THE
PERIOD
101.5
122.1
269.1
210.4
419.9
361.2
Comprehensive income attributable
to:
Owners of the Parent Company
100.5
121.4
267.4
209.9
417.5
360.0
1.2
Non-controlling interests
1.0
0.7
1.7
0.5
2.4
Income statement, SEK M Apr-Jun
2012
Apr-Jun
2011
Jan-Jun
2012
Jan-Jun
2011
Jul 2011 -
Jun 2012
Full year
2011
Cash flow statement, SEK M Apr-Jun
2012
Apr-Jun
2011
Jan-Jun
2012
Jan-Jun
2011
Jul 2011 -
Jun 2012
Full year
2011
Cash flow from operating activities before
changes in working capital and paid tax
176.5 151.9 428.4 310.5 775.6 657.7
Paid tax $-50.1$ $-59.3$ $-142.9$ $-119.8$ $-161.7$ $-138.6$
Changes in working capital 22.3 $-11.9$ $-57.2$ $-110.7$ 47.4 $-6.1$
Cash flow from operating activities 148.7 80.7 228.3 80.0 661.3 513.0
Cash flow from investing activities $-69.1$ $-80.2$ $-571.8$ $-122.2$ $-762.5$ $-312.9$
Cash flow from financing activities $-171.2$ $-200.6$ 464.6 $-182.2$ 290.9 $-355.9$
CASH FLOW FOR THE PERIOD $-91.6$ $-200.1$ 121.1 $-224.4$ 189.7 $-155.8$
#
Balance sheet, SEK M 30 Jun 2012 30 Jun 2011 31 Dec 2011
Goodwill 1,453.4 798.0 907.5
Other intangible assets 168.3 85.8 88.3
Property, plant and equipment 257.8 214.9 230.8
Financial assets 43.0 64.7 34.5
Current assets excl. cash and cash equivalents 2,594.9 1,927.0 1,776.1
Cash and cash equivalents incl. short-term investments 335.9 155.9 219.6
TOTAL ASSETS 4,853.3 3,246.3 3,256.8
Equity attributable to owners of the Parent Company 1,522.2 1,355.6 1,493.2
Non-controlling interests 18.1 9.6 10.5
Total equity 1,540.3 1,365.2 1,503.7
Non-current liabilities 851.7 170.5 192.3
Current liabilities 2,461.3 1,710.6 1,560.8
TOTAL EQUITY AND LIABILITIES 4,853.3 3,246.3 3,256.8
Pledged assets 28.4 16.8
Contingent liabilities 225.8 195.8 207.7
Changes in equity, SEK M Jan-Jun 2012 Jan-Jun 2011
Equity
attributable
to owners of Non-
the Parent
Company
controlling
interests
Total
equity
Equity
attributable
to owners of Non-
the Parent
Company
controlling
interests
Total
equity
Equity, opening balance 1,493.2 10.5 1,503.7 1,419.6 10.0 1,429.6
Comprehensive income for the period 267.4 1.7 269.1 209.9 0.5 210.4
Distribution to the shareholders $-274.0$ $-0.8$ $-274.8$ $-272.8$ $-1.0$ $-273.8$
Non-controlling interests in acquired companies 6.9 6.9 $\overline{\phantom{0}}$
Acquisition of non-controlling interests 0.1 $-0.2$ $-0.1$
Change in non-controlling interests $-0.1$ 0.1
Issue of treasury shares 46.9 46.9 $\overline{\phantom{0}}$
Repurchase of treasury shares $-12.0$ $\overline{\phantom{a}}$ $-12.0$ $-1.0$ $\overline{\phantom{a}}$ $-1.0$
Share ownership programme 0.6 0.6 $\overline{\phantom{a}}$
EQUITY, CLOSING BALANCE 1,522.2 18.1 1,540.3 1,355.6 9.6 1,365.2
#
Key ratios 1) Jan-Jun 2012 Jan-Jun 2011 Full year 2011
Operating margin, % 9.9 9.0 8.9
Profit margin, % 9.8 8.9 8.8
Billing ratio, % 74.5 73.5 73.9
Return on equity, % 32.5 23.7 25.6
Return on capital employed, % 33.4 30.2 34.2
Net debt/equity ratio, % 33.1 5.5 $-9.4$
Equity/assets ratio, % 31.7 42.1 46.2
Earnings per share, SEK
- Basic 3.11 2.08 4.11
- Diluted 3.11 2.08 4.11
Equity per share for profit attributable to owners of the
Parent Company, SEK
- Basic 16.66 14.91 16.46
- Diluted 16.66 14.91 16.46
Interest-bearing liabilities, SEK M 844.9 230.5 78.7
Of which, liabilities to credit institutions 844.2 226.8 71.8
Average number of employees 7,200 5,597 5,772
Number of shares on closing date 91,342,847 90,941,274 90,719,827
Number of shares after dilution on closing date 91,342,847 90,941,274 90,719,827
Number of shares after full dilution on closing date 91,342,847 92,241,274 90,719,827
Number of class B treasury shares 174,000 575,573 797,020


1) The definitions of key ratios are unchanged and can be found in Sweco's annual report for 2011.

Net sales, operating profit, operating margin and average number of employees for the period Jan-Jun

Business area Net sales
SEKM
Operating profit
SEK M
Operating margin
$\%$
Average no.
of employees
2012 2011 2012 2011 2012 2011 2012 2011
Sweco Sweden 2.044.7 1.793.0 233.2 219.7 11.4 12.3 3.159 2,857
Sweco Norway 910.7 688.9 88.6 54.0 9.7 7.8 1.141 981
Sweco Finland 415.3 44.0 45.3 4.8 10.9 10.9 974 70
Sweco Central & Eastern Europe 134.5 115.7 4.3 $-2.6$ 3.2 $-2.2$ 828 820
Sweco Russia 59.7 32.2 $-5.8$ 1.4 $-9.7$ 4.4 338 237
Sweco Industry 384.7 301.8 33.3 6.8 8.7 2.3 745 616
Group-wide, eliminations, etc. $-96.9$ $-48.2$ $-18.0$ $-19.5$ $\overline{\phantom{a}}$ $\overline{\phantom{0}}$ 15 16
Total Group 3,852.7 2.927.4 380.9 264.6 9.9 9.0 7.200 5,597

Operating profit for group-wide consists mainly of the Parent Company's loss of SEK -23.9 million (-23.4).

Acquisition of subsidiaries and operations

In the period under review Sweco acquired Pyramide AS, Finnmap Consulting Oy, Karasharju Oy and
Arkkitehtitoimisto Brunow & Maunula Oy, with a total of 1,180 employees. During the period, Sweco also acquired minority shares in Sweco Projekt. Based on the preliminary purchase price allocations, these acquisitions have affected the Group's balance sheet and cash and cash equivalents as shown in the table below. During the period the acquired companies have contributed net sales of SEK 383.6 million and operating profit of SEK 42.9 million. If all of the companies had been acquired at 1 January 2012, the contribution would have been around SEK 462.5 million to net sales and around SEK 51.4 million to operating profit. Transaction costs for the acquisition are recognised in operating profit and amounted for the period to SEK 12.5 million, of which SEK 12.0 million consists of transaction tax. Total transaction costs amount to SEK 20.8 million.

Acquisitions, SEK M FMC Group Other acquisitions
Intangible assets 636.2 26.3
Property, plant and equipment 7.0 0.4
Financial assets 20.1 0.0
Current assets 560.0 19.7
Non-current liabilities $-7.9$
Deferred tax $-43.6$ $-1.8$
Other current liabilities $-416.7$ $-11.6$
Non-controlling interests $-6.9$ 0.2
Equity attributable to owners of the Parent Company $-0.1$
Total consideration 748.2 33.1
Unsettled purchase price commitments $-1.9$
Consideration paid in shares $-46.9$
Cash and cash equivalents in acquired companies $-193.9$ $-10.3$
EFFECT ON THE GROUP'S CASH AND CASH
EQUIVALENTS
507.4 20.9
Parent Company income statement, SEK M Jan-Jun 2012 Jan-Jun 2011 Full year 2011
Net sales 113.8 42.2 80.3
Other external expenses $-110.5$ $-45.4$ $-92.2$
Personnel costs $-22.1$ $-18.6$ $-37.3$
Amortisation/depreciation and impairment $-5.1$ $-1.6$ $-3.9$
Operating profit/loss $-23.9$ $-23.4$ $-53.1$
Net financial items 32.8 55.3 464.3
Profit after financial items 8.9 31.9 411.2
Appropriations $-1.1$
Profit before tax 8.9 31.9 410.1
Income tax expense $-0.2$ $-93.7$
PROFIT AFTER TAX 8.7 31.9 316.4
Parent Company balance sheet, SEK M 30 Jun 2012 31 Dec 2011
Intangible assets 8.3 9.7
Property, plant and equipment 11.5 12.0
Financial assets 1,111.7 371.2
Current assets 701.2 1,624.8
TOTAL ASSETS 1,832.7 2,017.7
Equity 1,054.0 1,283.7
Untaxed reserves 1.2 1.2
Non-current liabilities 660.5 $\overline{\phantom{a}}$
Current liabilities 117.0 732.8
TOTAL EQUITY AND LIABILITIES 1,832.7 2.017.7
Five-year overview 1) Jul 2011-
Jun 2012
2011 2010 2009 2008
Net sales, SEK M 6,912.9 5,987.6 5,272.4 5,338.7 5,522.8
Operating profit, SEK M 647.6 531.3 432.7 443.6 596.3
Profit before tax, SEK M 643.5 526.8 423.7 443.6 588.2
Operating margin, % 9.4 8.9 8.2 8.3 10.8
Billing ratio, % 74.4 73.9 73.4 73.6 75.6
Return on equity, % 32.5 25.6 19.9 19.6 34.6
Return on capital employed, % 33.4 34.2 26.5 27.5 44.4
Net debt/equity ratio, % 33.1 $-9.4$ $-16.8$ $-26.2$ $-11.3$
Equity/assets ratio, % 31.7 46.2 47.8 50.6 47.0
Earnings per share, SEK
- Basic 5.14 4.11 3.31 3.31 4.68
- Diluted 5.14 4.11 3.28 3.28 4.65
Dividend per share, SEK $\overline{\phantom{a}}$ 3.00 3.00 2.00 2.00
Redemption amount per share, SEK $\overline{\phantom{a}}$ $\overline{\phantom{0}}$ - 2.00
Average number of employees 6,537 5,772 4,986 5,082 5,453

1) The definitions of key ratios are unchanged and can be found in Sweco's annual report for 2011.

Business a
area
2012
2
Q2
2
2012
Q1
2011
Q4
201
11
Q3
Q
2011
Q2
2011
Q1
20
010
Q4
2010
Q3
2010
Q2
2
2010
Q1
Net sales,
SEK M
Sweco Swe
eden
1,013.8
8
1,030.9 1
1,053.2
750
0.5
923.3 869.7 90
02.1
626.1 803.0 7
772.7
Sweco Nor
rway
438.2
2
472.5 405.7 307
7.2
339.5 349.4 32
24.3
276.1 345.6 3
350.6
Sweco Finl
and
259.3
3
156.0 27.0 21
.4
23.9 20.1 2
24.6
18.4 19.3 19.6
Sweco Cen
ntral &
Eastern Eu
urope
68.1
1
66.4 86.5 54
4.3
60.8 54.9 8
85.1
64.5 64.2 64.4
Sweco Rus
ssia
27.2
2
32.5 44.4 33
3.1
27.1 5.1 7.1 7.7 7.3 6.4
Sweco Indu
ustry
191.9
9
192.8 210.0 137
7.6
157.3 144.5 14
43.0
114.1 129.4 1
150.1
Group-wide
e,
eliminations
s, etc.
-55.4
4
-41.5 -40.7 -30
0.0
-25.2 -23.0 -
-7.2
-18.0 -3.3 -
-24.8
Total Grou
up
1,943.1
1
1,909.6 1
1,786.1
1,274
4.1
1,506.7 1,420.7 1,47
79.0
1,088.9 1,365.5 1,3
339.0
Operating
profit, SEK M
Sweco Swe
eden
94.7
7
138.5 139.2 53
3.4
113.6 106.1 10
06.2
44.1 98.1 85.8
Sweco Nor
rway
20.2
2
68.4 45.2 26
6.7
16.4 37.6 3
30.0
25.4 36.2 39.2
Sweco Finl
and
29.5
5
15.8 0.3 2.2
2
2.9 1.9 1.3 2.6 2.1 1.2
Sweco Cen
ntral &
Eastern Eu
urope
1.7
7
2.6 5.3 -1
.1
0.6 -3.2 3.5 -0.6 3.4 1.0
Sweco Rus
ssia
-3.0
0
-2.8 5.9 3.0
3
1.7 -0.3 1.0 1.4 0.5 0.5
Sweco Indu
ustry
12.1
1
21.2 14.0 4.1
4
3.8 3.0 2.5 -3.3 0.7 1.6
Group-wide
e,
eliminations
s, etc.
-5.6
6
-12.4 -18.3 -13
3.2
-11.0 -8.5 -1
6.0
0.0 -28.8 -6.9
Total Grou
up
149.6
6
231.3 191.6 75
5.1
128.0 136.6 12
28.5
69.6 112.2 1
122.4
Operating
margin, %
Sweco Swe
eden
9.3
3
13.4 13.2 7.1
7
12.3 12.2 1
1.8
7.0 12.2 11.1
Sweco Nor
rway
4.6
6
14.5 11.1 8.7
8
4.8 10.8 9.3 9.2 10.5 11.2
Sweco Finl
and
11.4
4
10.1 1.0 10
0.5
12.0 9.5 5.3 14.1 10.7 6.3
Sweco Cen
ntral &
Eastern Eu
urope
2.4
4
3.9 6.1 -2
2.1
1.1 -5.9 4.1 -0.9 5.3 1.6
Sweco Rus
ssia
-11.1
1
-8.5 13.5 8.9
8
6.2 -5.1 1
4.1
18.2 6.6 7.8
Sweco Indu
ustry
6.3
3
11.0 6.7 3.0
3
2.4 2.1 1.7 -2.9 0.5 1.1
Total Grou
up
7.7
7
12.1 10.7 5.9
5
8.5 9.6 8.7 6.4 8.2 9.1

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