NCC Group

Earnings Release • Jul 18, 2023

Increase in orders received and higher profit

"NCC had a positive quarter with good orders received and higher operating profit. There is favorable demand in many segments."

Tomas Carlsson, President and CEO of NCC

• Good orders received and strong order backlog in all business areas
• Systematic improvement in operating profit for Infrastructure
• Construction operations notes stable sales, but are impacted by lower margins
• Industry reported higher year-on-year operating profit
• Cash flow is seasonally negative

Second quarter of 2023

• Orders received amounted to SEK 14,691 M (12,763)
• Net sales totaled SEK 14,854 M (14,001)
• Operating profit amounted to SEK 503 M (474)
• Profit after financial items totaled SEK 493 M (464)
• Profit after tax was SEK 407 M (383)
• Earnings per share after dilution amounted to SEK 4.17 (3.59)

First half of 2023

• Orders received amounted to SEK 30,979 M (29,398)
• Net sales totaled SEK 27,319 M (24,113)
• Operating profit amounted to SEK 655 M (304)
• Profit after financial items totaled SEK 678 M (289)
• Profit after tax was SEK 560 M (236)
• Earnings per share after dilution amounted to SEK 5.73 (2.20)

	Q2			Jan-Jun	R12 Jul-Jun	Jan-Dec
Group, SEK M	2023	2022	2023	2022	2022/2023	2022
Orders received	14,691	12,763	30,979	29,398	54,866	53,285
Order backlog	59,359	60,960	59,359	60,960	59,359	54,995
Net sales	14,854	14,001	27,319	24,113	57,404	54,198
Operating profit/loss	503	474	655	304	1,708	1,358
Operating margin, %	3.4	3.4	2.4	1.3	3.0	2.5
Profit/loss after financial items	493	464	678	289	1,688	1,299
Net profit/loss for the period	407	383	560	236	1,392	1,069
Profit/loss per share after dilution, SEK	4.17	3.59	5.73	2.20	14.02	10.29
Cash flow from operating activities	-1,009	-1,419	-818	-1,797	1,244	265
Cash flow before financing	-1,274	-1,505	-1,255	-1,865	474	-136
Net cash +/Net debt -	-4,472	-4,383	-4,472	-4,383	-4,472	-3,000

For definitions of key figures, see ncc.com/investor-relations/ncc-share/financial-definitions/

CEO Tomas Carlsson comments

NCC had a favorable and stable quarter with good orders received, higher operating profit and positive signals from the improvement initiatives in the contracting and industrial operations. NCC's property development business is being impacted by the stagnant market situation, which is creating some uncertainty regarding the schedule for future sales and the start of new projects.

The Infrastructure business area is continuing to improve its earnings, quarter by quarter. The business area has a broad base of large and small civil engineering projects. The prioritized segments requiring a higher degree of specialist know-how, such as Energy and Water Treatment, is continuing to grow. This applies not only in Sweden, where NCC already has a strong position, but also in Denmark and to a certain extent, Norway. In Denmark, NCC secured several major assignments in this segment during the quarter.

Building Sweden had stable orders received and sales. As communicated earlier, earnings are impacted by lower margins in certain residential housing projects from prior years. The market for residential units and offices is weak, but the business area has compensated for this through a deliberate focus on public buildings. We also see good demand for refurbishment and remodeling.

Building Nordics had a high level of orders received during the quarter, mainly driven by a number of projects in which we worked from an early stage with the customer over an extended period and are now ready to start. In this business area, too, there is a clear trend toward more public buildings and fewer residential projects. We have implemented changes in Finland to adapt so we have the right resources geographically, a more efficient organization and new management.

The Industry business area had higher earnings for the quarter and we can see a positive trend. The volumes for the stone materials operations were impacted by the lower level of activity in the construction market in general. The asphalt operations improved as a result of the measures taken to strengthen profitability.

Property development, within the Property Development business area, is a market that is currently experiencing very low activity. NCC has four completed projects that have not yet been sold. We will await a more active market and sell when we consider that we can receive a fair price for the projects. In terms of new projects, we are working actively with many possibilities, but will maintain a cautious approach to new starts and place higher demands than in the past on letting and sales potential.

Our target for earnings per share of SEK 16 stands firm. Whether we will achieve this in 2023, or if it needs to be postponed for a year or so, mainly depends on how the property market performs. Our financial position is strong.

NCC began the year well, but naturally, we are actively monitoring the economic development in the Nordic region in order to adapt our priorities and our risk level. Fundamentally, we see a positive market and extensive opportunities to benefit from our size, our know-how and our strength in the years to come.

Tomas Carlsson, President and CEO Solna, July 18, 2023

Group performance

Market

In the main, NCC is impacted by the general economic situation and the GDP trend. Cost increases, rising interest rates and uncertainty concerning the future economic development have a dampening effect on the market. Over the long term, higher prices could lead to lower demand, especially in certain segments. Rising interest rates also affect interest in investing in new properties. The market for residential units and offices is impacted most tangibly by the economic situation.

At the same time, the long-term market conditions for contracting operations, property development and industrial operations in the Nordic region remain positive. There are plans for large industrial investments in parts of Sweden. There is an underlying demand for public buildings, such as schools, prisons, hospitals and retirement homes.

Urban expansion and the emergence of new growth regions are driving initiatives for infrastructure in city areas, including roads, public transport, water and wastewater, and energy solutions. In general, the market for renovation and refurbishment is also healthy. There is also an underlying demand for residential units, although the economic situation is impacting this.

The countries in which NCC has infrastructure operations have ambitious plans and investment initiatives in renewal, refurbishment and maintenance of national and regional infrastructure. Demand for asphalt and stone materials is driven by investments in infrastructure and maintenance.

Net sales and earnings

Net sales amounted to SEK 14,854 M (14,001) in the second quarter and to SEK 27,319 M (24,113) for the January-June period. All of the business areas reported a positive trend during the first half of the year. Changes in exchange rates had an impact of SEK 523 M (379) on net sales.

Operating profit amounted to SEK 503 M (474) in the second quarter and to SEK 655 M (304) for the January-June period. The improved operating profit in Industry was mainly attributable to the asphalt operations. The higher operating profit in Infrastructure was driven by the higher net sales during the quarter. In Building Sweden, operating profit declined during the second quarter as a consequence of a lower margin in the order backlog due to the impairments implemented in 2022 in a small number of projects. Property Development did not recognize any projects in profit during the quarter. IFRS reporting of pension liability has also contributed to the operating profit.

The operating margin for the quarter was in line with the preceding year but was higher for the January-June period year-on-year. On a rolling twelve-month basis, NCC had an operating margin of 3.0 percent.

Net financial items for the period were SEK 23 M (-15). Higher capitalization of interest for Property Development and lower pension debt had a positive impact. Higher corporate debt and higher interest expenses had a negative impact.

Effective tax

The effective tax rate for the Group amounted to 17.5 percent (18.3) for the period. During the January-June period, two tax-free sales were made: one project and one sale of land. During the same period in 2022, only one tax-free sale was completed.

Orders received, Jan–Jun SEK M

30,979

Net sales, Jan–Jun SEK M

27,319

Net sales, SEK M

Cash flow

Cash flow before financing for the quarter amounted to SEK -1,274 M (- 1,505) and SEK -1,255 M (-1,865) for the January-June period. Cash flow for the second quarter is seasonally negative due to the start-up of Industry's asphalt operations. The improvement between the years was mainly due to less negative impact from seasonal increase in working capital.

Cash flow from property projects during the first half of the year was, despite higher investments, somewhat less negative than in the preceding year due to the sale of Kontorværket and a sale of land during the first quarter. In the preceding year, only one minor project, Bettorp, was recognized in profit and handed over to the customer during the first half of the year.

Cash flow from investments during the January-June period was lower than in the preceding year since the Industry business area received the purchase consideration from the sale of land completed in December 2021. In addition, Infrastructure received the purchase consideration from the sale of Hercules Armering during the second quarter of the preceding year.

Total cash and cash equivalents at the end of the period amounted to SEK 877 M (1,180).

The Group's net debt at June 30 amounted to SEK -4,472 M (-4,383).

The corporate net debt, meaning net debt excluding pension debt and lease liabilities, totaled SEK -3,377 M (-1,984) at the end of the quarter. The reason for the increase in corporate net debt was higher investments in ongoing and completed property projects.

The Group's total assets at June 30 amounted to SEK 33,458 M (30,928). It was primarily completed projects in Property Development that increased, in parallel with an increase in interest-bearing liabilities.

The average maturity period for interest-bearing liabilities, excluding pension debt and lease liabilities, was 18 months (18) at the end of the quarter. At June 30, NCC's unutilized committed lines of credit totaled SEK 4,500 M (3,300), with an average remaining maturity of 25 months (28).

Capital employed

At June 30, capital employed amounted to SEK 13,612 M (12,191). The increase was mainly due to higher investments in property projects during the period. The return on capital employed was 14 percent (15).

The return on equity was 20 percent (27).

Financial targets and dividend policy

NCC has two financial targets: earnings per share and net debt in relation to EBITDA. The target is for earnings per share to be a minimum of SEK 16 by 2023. The company's net debt is to be less than 2.5 times EBITDA. Earnings per share on a rolling 12-month basis amounted to SEK 14.02. Corporate net debt amounted to 1.43 times EBITDA.

NCC's dividend policy states that approximately 60 percent of the profit for the year is to be distributed to shareholders. On March 31, the Annual General Meeting of NCC adopted the proposal by the Board of Directors for a dividend of SEK 6 per share for fiscal year 2022, divided between two payment occasions. This corresponds to 55 percent of after-tax profit for 2022. The record date for the first payment of SEK 3 per share was April 4, 2023. The record date for the second payment of SEK 3 per share is November 6, 2023.

This refers to the corporate net debt, that is, net debt excluding pension debt and lease liability. EBITDA refers to operating profit according to the income statement, with reversal of depreciation and impairment losses according to Note 2, excluding depreciation/amortization of right-of-use assets.

Health and safety targets

Health and safety is a high priority area in NCC and a prioritized area in the Group's sustainability framework. All levels of the Group are focused on reducing the total number of accidents as well as completely avoiding accidents and incidents that lead to or could lead to serious injury or fatalities.

NCC has set a Group-wide target for the accident frequency rate for accidents that lead to more than four days of absence per million worked hours (LTIF4) for the Group's own employees. The target is to achieve 2.0 in 2026 with annual interim targets. On a rolling 12-month basis, the outcome for the second quarter was 4.2, which is higher than for full-year 2022.

The negative trend mainly derived from a small number of accidents in one division. Special measures were taken to put further focus on safety work throughout NCC, but also specifically in the division affected.

Climate and energy targets

NCC reports on developments in climate and energy at six-monthly intervals in the interim reports for the first and third quarters. The emission intensity for Scope 1 and 2 presented in the diagram on the right pertains to full-year 2022.

Accident frequency*

*Accident frequency rate: Worksite accidents resulting in more than four days of absence per one million worked hours.

Emission intensity:

The figures for the base year were recalculated due to the divestment of Asphalt Finland, in accordance with the Greenhouse Gas Protocol Corporate Standard. Earlier, the following values were reported:

2015	2016	2017	2018	2019	2020	2021
5.9	5.0	4.8	4.0	3.7	3.4	3.5

Order status

Orders received and order backlog

Orders received in the second quarter amounted to SEK 14,691 M (12,763), an increase of slightly more than 15 percent year-on-year. Orders received during the quarter mainly increased in Building Nordics, primarily in Norway. In Infrastructure, orders received during the quarter were also higher than in the preceding year. In Building Sweden, the lower orders received were attributable to a number of large orders registered in the second quarter of the preceding year. In Industry, orders received during the quarter were lower than in the preceding year, mainly because of orders being received already in the first quarter 2023.

Orders received for the January–June period amounted to SEK 30,979 M (29,398). Orders received, which mainly increased in Building Nordics, were driven by the Danish and Norwegian operations. The lower orders received in Building Sweden were due to a number of large projects being registered among orders in the first quarter of 2022.

Changes in exchange rates impacted orders received by SEK 528 M (462).

The Group's order backlog amounted to SEK 59,359 M (60,960) at the end of the quarter. The order backlog declined in Infrastructure and Building Sweden, but this was offset by a higher order backlog in Building Nordics and Industry.

Changes in exchange rates impacted order backlog by SEK 870 M (816).

Orders received, SEK M

Order backlog, SEK M

Examples of orders and contracts during the second quarter of 2023. A list of orders valued at more than SEK 150 M and announced via press releases during the quarter is available at ncc.com/ir.

• Building Nordics is to construct a hospital building for a secure psychiatric unit in Bærum, Norway. The order is valued at approximately SEK 1 billion.
• In Norway, Building Nordics will also construct a swim center in Oslo (SEK 800 M) and a soccer hall in Trondheim (SEK 230 M).
• Building Sweden is to renovate and modernize Avicii Arena, Stockholm Globe Arena. The order value is approximately SEK 700 M.
• Infrastructure is to construct Denmark's largest water treatment plant. The order value is approximately SEK 600 M.
• In Sweden, Infrastructure is to construct a new wastewater treatment plant in Enköping with an order value of approximately SEK 325 M.
• Building Nordics has been commissioned to refurbish 441 apartments in Herning, in Denmark. The order value is approximately SEK 550 M.
• Building Sweden is to construct Drömfabriken in Skultuna, Västerås, which will become a meeting place with a school, library and after-school club. The order value is approximately SEK 340 M.
• In Eslöv, Building Sweden is to convert the old Spritfabriken into residential units and offices. The order value is approximately SEK 320 M.
• Building Sweden is to refurbish Nyköpings lasarett (SEK 270 M) and refurbish the county hospital in Trollhättan (SEK 150 M).
• In Denmark, Infrastructure is to secure the electricity supply in Copenhagen, by laying new pipes and highvoltage cables. The order value is about SEK 270 million. In Jutland they will carry out the construction work when the Thor Offshore Wind Farm is connected to the national grid. The order value is approximately SEK 200 M.
• Building Sweden is to build 276 student apartments in Uppsala. The order value is approximately SEK 260 M.

NCC Infrastructure

Orders received and order backlog

Orders received amounted to SEK 3,522 M (3,056) in the second quarter and to SEK 8,139 (7,460) for the first six months. The increase is attributable to several major projects being registered among orders in Sweden and Denmark. Energy and Water Treatment accounted for the largest share of orders received and increased most.

The order backlog was lower than in the year-earlier period and amounted to SEK 16,921 M (18,434) due to higher activity in the ongoing projects and lower orders received than net sales in the quarter.

Net sales and earnings

Net sales amounted to SEK 4,602 M (4,359) in the second quarter and to SEK 8,536 (7,860) for the first six months. Energy and Water Treatment and Groundworks accounted for half of the total net sales.

Operating profit amounted to SEK 140 M (124) in the second quarter and to SEK 208 (166) for the first six months. The higher net sales and higher project margins in the order backlog had a positive effect on operating profit in the business area.

In June, NCC signed an agreement to sell its Bergnäset Ställningsmontage AB subsidiary to the German company REMONDIS Maintenance & Services Sweden AB. The sale is expected to generate a positive impact on earnings of approximately SEK 175 M in the Infrastructure business area when closed, which is expected to occur in the third quarter of 2023.

	Q2			Jan-Jun	R12 Jul-Jun	Jan-Dec
	2023	2022	2023	2022	2022/2023	2022
Orders received	3,522	3,056	8,139	7,460	16,070	15,391
Order backlog	16,921	18,434	16,921	18,434	16,921	17,291
Net sales	4,602	4,359	8,536	7,860	17,933	17,256
Operating profit/loss	140	124	208	166	471	429
Operating margin, %	3.0	2.8	2.4	2.1	2.6	2.5

Orders received Jan–Jun

Share of sales Jan–Jun

NCC Building Sweden

Orders received and order backlog

Orders received amounted to SEK 3,543 M (3,726) in the second quarter and to SEK 6,942 M (8,518) in the first half of the year. The lower level of orders received for the January-June period was primarily attributable to several major projects being registered among orders in the first quarter of 2022. Public buildings accounted for the largest share of orders received and increased most. The Residential segment declined most due to the prevailing market situation. The lower orders received in the Other segment is explained by more orders received in industry and logistics buildings in the same period in the previous year. 90 percent of orders received for residential units comprised rental apartments.

The order backlog was lower than in the year-earlier period, but remained at a high level compared with net sales for one year, amounting to SEK 18,295 M (19,685) at the end of the quarter.

Net sales and earnings

Net sales amounted to SEK 3,743 M (3,778) in the second quarter and SEK 7,234 M (6,877) for the first half of the year. Residential and Public Buildings accounted for the largest share of total net sales.

Operating profit amounted to SEK 73 M (117) in the second quarter and to SEK 133 M (210) for the first half-year. Year-on-year, earnings were impacted negatively by somewhat lower project margins in the order backlog due to impairment losses in a small number of residential housing projects in 2022.

	Q2			Jan-Jun	R12 Jul-Jun	Jan-Dec
	2023	2022	2023	2022	2022/2023	2022
Orders received	3,543	3,726	6,942	8,518	13,134	14,711
Order backlog	18,295	19,685	18,295	19,685	18,295	18,587
Net sales	3,743	3,778	7,234	6,877	14,534	14,178
Operating profit/loss	73	117	133	210	175	252
Operating margin, %	2.0	3.1	1.8	3.1	1.2	1.8

Share of sales Jan–Jun

Net sales Jan–Jun

NCC Building Nordics

Orders received and order backlog

Orders received in the first quarter amounted to SEK 4,731 M (2,680) and to SEK 9,829 (7,531) M for the first six months. The increase was attributable to Norway and Denmark, which registered several large projects among orders. In Finland, orders received declined. The large projects in Norway and Denmark meant that Public Buildings accounted for the largest share of orders received. The increase in Other is due to some projects being reclassified from Public Buildings. The share of residential units declined sharply compared with the preceding year as a result of the prevailing market situation.

The order backlog was higher than in the year-earlier period and amounted to SEK 20,306 M (19,282).

Net sales and earnings

Net sales amounted to SEK 3,756 M (3,346) in the second quarter and to SEK 7,259 (6,201) M for the first six months. All countries contributed to the increase. Public Buildings and Refurbishment accounted for more than half of net sales.

Operating profit amounted to SEK 94 M (92) in the quarter and to SEK 112 (148) M for the first six months. Operating profit for the business area was negatively impacted by lower margins in the order backlog in projects for which impairment was made in the preceding year due to cost levels, particularly in Finland and Norway. Denmark reported a strong operating profit. In Finland, changes were implemented to adapt the operations to the market and to strengthen profitability.

	Q2		Jan-Jun		R12 Jul-Jun	Jan-Dec
	2023	2022	2023	2022	2022/2023	2022
Orders received	4,731	2,680	9,829	7,531	14,619	12,321
Order backlog	20,306	19,282	20,306	19,282	20,306	17,127
Net sales	3,756	3,346	7,259	6,201	14,626	13,568
Operating profit/loss	94	92	112	148	311	347
Operating margin, %	2.5	2.8	1.5	2.4	2.1	2.6

Net sales Jan–Jun

Share of sales Jan–Jun

NCC Industry

Orders received

Orders received during the second quarter totaled SEK 3,089 M (3,776) and SEK 6,396 M (6,531) for the first half of the year. Orders received were lower for the asphalt operations in both the quarter and during the first half of the year, while the stone materials operations were at the same level during the quarter and higher during the first six months.

Net sales and earnings

Net sales increased year-on-year to SEK 3,471 M (3,280) in the second quarter and SEK 4,529 M (4,257) for the first half of the year. The higher sales during the first half-year derived from the asphalt and stone materials operations, driven by price increases to customers.

Operating profit amounted to SEK 281 M (240) in the second quarter and SEK 20 M (-65) for the first half of the year. The higher earnings derive from the asphalt and stone materials operations, mainly in Denmark and Norway. The reason was essentially higher prices and lower costs.

Operating capital employed

Operating capital employed was on the same level as in the preceding year.

	Q2		Jan-Jun		R12 Jul-Jun	Jan-Dec
	2023	2022	2023	2022	2022/2023	2022
Orders received	3,089	3,776	6,396	6,531	11,503	11,638
Net sales	3,471	3,280	4,529	4,257	11,540	11,268
Operating profit/loss	281	240	20	-65	93	8
Operating margin, %	8.1	7.3	0.5	-1.5	0.8	0.1
Operating capital employed ¹ Stone materials	5,378	5,361	5,378	5,361	5,378	4,411
thousand tonnes, sold volume	7,004	7,970	12,833	14,317	26,958	28,443
Asphalt thousand tonnes, sold volume	1,531	1,532	1,719	1,731	4,791	4,803
Return on operating capital employed, % ¹	-	-	-	-	2.0	0.3

1) See definition at NCC:s website, ncc.com/investor-relations/ncc-share/financial-definitions/

Net sales Jan–Jun Net sales Jan–Jun Asphalt and paving 75 (77)% Stone materials 25 (23)% Asphalt and paving 66 (65)% Stone materials 34 (35)%

Orders received Jan–Jun

Share of sales Jan–Jun

NCC Property Development

Net sales and earnings

Net sales amounted to SEK 61 M (58) in the second quarter and SEK 1,208 M (388) for the first six months.

Operating profit amounted to SEK -37 M (1) in the second quarter and SEK 219 M (31) for the first half of the year. No projects were recognized in profit for the quarter. One office project in Denmark, Kontorværket 1, was recognized in profit in the January-June period. During the first half of the year, the previously announced sale of land with development rights in Sweden (Järva krog) also made a positive contribution to earnings. In the year-earlier period, earnings were derived from profit recognition of a small project, Bettorp, in Sweden. Supplementary purchase considerations from earlier divestments were added to this.

Property projects

No projects were started during the quarter. In the January-June period, one project, Park Central, was started in Sweden. The project is expected to be recognized in profit during the second quarter of 2027.

Letting amounted to 13,300 square meters (21,000) for the first half of the year, including 4,700 square meters (3,400) in the second quarter. During the first half of the year, a total of 18 (19) new leases were signed in Sweden, Finland and Denmark, of which 7 (7) in the second quarter.

At the end of the second quarter, 11 projects (12) were either ongoing or completed but not yet recognized in profit. The costs incurred in all projects amounted to SEK 8.2 billion (7.1), corresponding to a total completion rate of 70 percent (63). The completion rate for all ongoing projects amounted to 52 percent (63). The total letting rate during the quarter was 58 percent (65). Operating net amounted to SEK 37 M (9) for the second quarter, and to SEK 67 M (18) for the first half of the year.

Operating capital employed

Operating capital employed increased and amounted to SEK 8,787 M (7,495) at the end of the quarter. The increase was attributable to investments in projects, while only one project was recognized in profit during the period.

	Q2		Jan-Jun		R12 Jul-Jun	Jan-Dec
	2023	2022	2023	2022	2022/2023	2022
Net sales	61	58	1,208	388	2,121	1,301
Operating profit/loss	-37	1	219	31	670	482
Operating margin, %	-59.6	2.0	18.2	7.9	31.6	37.0
Operating capital employed ¹	8,787	7,495	8,787	7,495	8,787	7,996
Return on operating capital employed, % ¹	-	-	-	-	8.4	6.7

1) See definition at NCC:s website, ncc.com/investor-relations/ncc-share/financial-definitions/

Net sales Jan–Jun

1) Total letting also includes previously sold and profitrecognized property projects where NCC works with letting.

* Arendal Albatross has been sold, and the letting rate is 100 percent since the letting risk has passed to the buyer at the time of sale.

Property projects

NCC Property Development

Property development projects as of 2023-06-30

Ongoing Property development projects1

Project	Type	Location	Sold, estimated recognition in profit	Completion ratio, %	Lettable area (sqm)	Letting ratio, %
We Land	Office	Helsinki		60	21,200	35
Total Finland				60	21,200	35
MIMO ²	Office	Gothenburg	Q4 2024	68	31,700	39
Nova	Office	Solna		79	9,900	26
Arendal Albatross ³	Logistics	Gothenburg	Q1 2024	82	34,000	100
Habitat 7	Office	Gothenburg		36	8,200	35
Flow Hyllie	Office	Malmö		41	10,200	40
Park Central ⁴	Office	Gothenburg	Q2 2027	7	15,200	0
Total Sweden				49	109,200	33
Total				52	130,400	34

Completed Property development projects

x

x

Project	Type	Location	Sold, estimated recognition in profit	Lettable area (sqm)	Letting ratio, %
Kulma21	Office	Helsinki		7,700	100
Total Finland				7,700	100
Bromma Blocks	Office	Stockholm		52,400	79
Våghuset	Office	Gothenburg		10,900	99
Brick Studios	Office	Gothenburg		16,100	95
Total Sweden				79,400	85
Total				87,100	87

1) The tables 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 five previously sold and revenue recognized property projects, a maximum of approximately SEK 20 M.

2) NCC announced in Q2 2017 that Platzer had an option to acquire the property in Mölndal when the project is completed. During Q3 2021, Platzer chose to realize the option and the parties have signed a sales agreement. The sale is conditioned by a letting ratio of 80% or more.

3) The project has been sold and the letting ratio is 100 percent as the letting-risk has passed to the buyer.

4) The project covers approximately a total of 40,000 square meters and lettable area of approximateley 30,400 square meters.

The project is carried out together with Jernhusen, a Swedish state-owned property company, and was included in the december 2021 agreement to jointly develop Park Central in joint venture through a jointly owned company. NCC has acquired 50 procent of the property-owning company by Jernhusen that will repurhase the part when the property is completed and some critera is fulfilled. The data in the table refers to NCCs share of the project.

Geographical areas

Sweden

Denmark

Norway

Finland

Other

Significant risks and uncertainties

A description of the risks to which NCC may be exposed is provided in the 2022 Annual Report (pages 24–29). This assessment still applies.

In February 2022, Russia began an invasion of Ukraine, which has had a number of consequences for the global economy. NCC has no operations in Ukraine, Russia or Belarus, nor does it have any major direct suppliers in these countries.

The conflict is impacting the global economy and high inflation, a declining economy and falling GDP also represent risks for NCC in the longer term. Higher interest rates also have an impact on, for example, the conditions for the sale of properties and the general construction market, as detailed in the risk section of the Annual Report.

Related-party transactions

Related parties are NCC's subsidiaries, associated companies and joint arrangements. Related-company sales during the second quarter amounted to SEK 12 M (13) and purchases to SEK 7 M (4). In the first half-year, sales amounted to SEK 18 M (23) and purchases to SEK 8 M (6).

Seasonal effects

Operations in the Industry business area and certain operations in Building Sweden, Building Nordics and Infrastructure are impacted by seasonal variations due to weather conditions. Earnings in the first quarter are normally weaker than the rest of the year.

Amounts and dates

Unless otherwise indicated, amounts are stated in SEK millions (SEK M). All comparative figures in this report pertain to the year-earlier period. Rounding-off differences may arise in all tables.

Dividend

On March 31, NCC's Annual General Meeting (AGM) resolved in favor of the Board's proposal that a dividend of SEK 6.00 per share be paid for the 2022 fiscal year, divided between two payment occasions. The record date for the first payment of SEK 3.00 per share was April 4, 2023, with disbursement on April 11, 2023. The record date for the second payment of SEK 3.00 per share has been set as November 6, 2023, with disbursement on November 9, 2023.

Repurchased shares and cancellation of shares

Ahead of the 2023 AGM, NCC AB held a total of 10,843,582 repurchased Series B shares, of which 765,842 are to cover commitments according to the long-term incentive program.

The Annual General Meeting resolved on the cancellation of 8,674,866 shares outstanding and cancellation occurred on April 28, 2023, which was announced in a separate press release. Accordingly, at the end of the quarter, NCC AB had 2,168,716 treasury shares.

The Annual General Meeting decided on a reduction of the share capital by SEK 69,398,928 through the cancellation of 8,674,866 own Series B shares and an increase in the share capital of SEK 69,398,928 through a bonus issue without the issue of new shares, to restore the share capital. This was carried out during the second quarter of 2023.

Other significant events

On June 26, it was announced that the wholly owned company Bergnäset Ställningsmontage AB would be sold to the German company REMONDIS Maintenance & Services Sweden AB. The sale is expected to generate a positive impact on earnings of approximately SEK 175 M in Infrastructure when it is closed. This is expected to occur in the third quarter of 2023. For more information, refer to the press release.

Financial calendar

Interim report Q3 and Jan–Sep: October 31, 2023 Interim report Q4 and Jan–Dec: January 30, 2024 Annual General Meeting, Stockholm: April 9, 2024 Interim report Q1 2024: May 3, 2024 Interim report Q2 and Jan–Jun: July 16, 2024

Signatures

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

Solna, July 18, 2023

Alf Göransson Simon de Château Cecilia Fasth Chairman of the Board Board member Board member

Board member Board member Board member

Mats Jönsson Daniel Kjørberg Siraj Angela Langemar Olsson

Birgit Nørgaard Board member

Board member Employee representative

Karl-Johan Andersson Karl G Sivertsson Harald Stjernström Board member Employee representative

Board member Employee representative

Tomas Carlsson President and CEO

This report is unaudited.

Condensed consolidated income statement

	Note	Q2		Jan-Jun		R12 Jul-Jun	Jan-Dec
SEK M	1	2023	2022	2023	2022	2022/2023	2022
Net sales	4	14,854	14,001	27,319	24,113 -	57,404	54,198
Production costs	2	-13,565	-12,754	-25,134	-22,289	-53,046	-50,202
Gross profit		1,290	1,247	2,185	1,824	4,358	3,996
Selling and administrative expenses	2	-800	-795	-1,548	-1,547	-2,983	-2,981
Other operating income/expenses		14	22	18	27	334	343
Operating profit/loss	4	503	474	655	304	1,708	1,358
Financial income		5	2	34	17	46	29
Financial expense ¹		-15	-12	-11	-32	-66	-87
Net financial items	4	-10	-10	23	-15	-21	-59
Profit/loss after financial items	4	493	464	678	289	1,688	1,299
Tax		-86	-81	-119	-53	-296	-230
Net profit/ loss		407	383	560	236	1,392	1,069
Attributable to:
NCC´s shareholders		407	383	560	236	1,392	1,069
Net profit/loss for the period		407	383	560	236	1,392	1,069
Earnings per share
Net profit/loss for the period, before and after dilution, SEK		4.17	3.59	5.73	2.20	14.02	10.29
Number of shares, millions
Total number of issued shares		99.8	108.4	99.8	108.4	99.8	108.4
Average number of shares outstanding before and after dilution during the period		97.6	106.7	97.6	107.1	99.3	103.9
Number of shares outstanding at the end of the period		97.6	105.1	97.6	105.1	97.6	97.6

1) Whereof interest expenses including capitalized interest expenses for the quarter SEK -9 M (-7) and for the period SEK 2 M (-16).

Consolidated statement of comprehensive income

	Note		Q2		Jan-Jun	R12 Jul-Jun	Jan-Dec
SEK M	1	2023	2022	2023	2022	2022/2023	2022
Net profit/loss for the period		407	383	560	236 -	1,392	1,069
Items that have been recycled or should be recycled to net profit/loss for the period
Exchange differences on translating foreign operations		142	64	127	107	249	229
Cash flow hedges		22	104	-34	106	-82	58
Income tax relating to items that have been or should be recycled to net profit/loss for the period		-5	-22	7	-22	17	-12
		160	146	100	191	184	275
Items that cannot be recycled to net profit/loss for the period
Revaluation of defined benefit pension plans		412	1,280	250	1,227	1,062	2,039
Income tax relating to items that can not be recycled to net profit/loss for the period		-85	-264	-51	-253	-219	-420
		327	1,017	198	975	843	1,619
Other comprehensive income		487	1,163	299	1,166	1,027	1,894
Total comprehensive income		894	1,546	858	1,402	2,420	2,963
Attributable to:
NCC´s shareholders		894	1,546	858	1,402	2,420	2,963
Total comprehensive income		894	1,546	858	1,402	2,420	2,963

Condensed consolidated balance sheet

	Note
SEK M	1	30 Jun 2023	30 Jun 2022	31 Dec 2022
ASSETS
Goodwill		1,980	1,895	1,943
Other intangible assets		408	330	326
Right-of-use assets	3	1,452	1,501	1,420
Owner-occupied properties		909	859	909
Machinery and equipment		2,586	2,388	2,504
Long-term interest-bearing receivables	5	215	197	184
Pension receivable		434	-	68
Other financial fixed assets		679	676	684
Total fixed assets		8,663	7,846	8,037
Properties held for future development		1,197	905	1,179
Ongoing property projects		3,155	6,402	7,171
Completed property projects		4,922	-	-
Participations in associated companies		167	491	74
Materials and inventories		1,194	1,148	1,079
Accounts receivable		9,552	8,750	8,205
Worked-up, not-invoiced revenues		2,113	2,378	1,410
Current interest-bearing receivables		170	103	117
Other current receivables	3	1,450	1,723	1,364
Short-term investments		454	367	394
Cash and cash equivalents		423	813	534
Total current assets		24,795	23,081	21,528
Total assets		33,458	30,928	29,565
EQUITY
Shareholders´ equity		7,446	6,327	7,183
Total shareholders´ equity		7,446	6,327	7,183
LIABILITIES
Long-term interest-bearing liabilities	5	3,787	2,444	3,286
Provisions for pensions and similar obligations		-	814	-
Other long-term liabilities		1,089	763	1,003
Other provisions		2,404	2,500	2,481
Total long-term liabilities		7,280	6,521	6,770
Current interest-bearing liabilities	5	2,380	2,606	1,012
Accounts payable		5,607	5,334	5,165
Invoiced revenues not worked-up		6,232	5,874	4,754
Other current liabilities		4,514	4,265	4,681
Total current liabilities		18,733	18,080	15,612
Total liabilities		26,013	24,601	22,382
Total shareholders´ equity and liabilities		33,458	30,928	29,565

Condensed consolidated changes in shareholders' equity

		30 Jun 2023		30 Jun 2022
SEK M		Share capital Profit brought forward	Total shareholders´ equity	Share capital	Profit brought forward	Total shareholders´ equity
Opening balance	867	6,315	7,183	867	4,977	5,844
Total comprehensive income	-	858	858	-	1,402	1,402
Dividend	-	-586	-586	-	-646	-646
Withdrawal of own shares	-69	69	-	-	-	-
Bonus issue	69	-69	-	-	-	-
Acquisition/sale of treasury shares	-	-	-	-	-283	-283
Performance based incentive program	-	-9	-9	-	11	11
Closing balance	867	6,579	7,446	867	5,461	6,327

	Q2		Jan-Jun		R12 Jul-Jun	Jan-Dec
SEK M	2023	2022	2023	2022	2022/2023	2022
OPERATING ACTIVITIES
Operating profit/loss	503	474	655	304	1,708	1,358
Adjustments for items not included in cash flow	173	186	425	472	834	881
Interest paid and received	-32	-3	-57	-9	-72	-24
Taxes paid	-47	-58	-85	-172	-131	-218
Cash flow from operating activities before changes in working capital	598	598	938	596	2,339	1,997
Divestment of property projects	12	-	651	233	1,824	1,406
Gross investments in property projects	-615	-672	-1,508	-1,217	-3,216	-2,924
Cash flow from property projects	-603	-672	-857	-984	-1,391	-1,518
Other changes in working capital	-1,003	-1,345	-899	-1,409	297	-213
Cash flow from changes in working capital	-1,607	-2,017	-1,756	-2,393	-1,095	-1,731
Cash flow from operating activities	-1,009	-1,419	-818	-1,797	1,244	265
INVESTING ACTIVITIES
Acquisition/sale of subsidiaries and other holdings	6	96	-9	96	106	211
Acquisition/sale of tangible fixed assets	-196	-175	-319	-161	-737	-579
Acquisition/sale of other fixed assets	-76	-7	-108	-2	-139	-33
Cash flow from investing activities	-265	-86	-437	-67	-770	-401
Cash flow before financing	-1,274	-1,505	-1,255	-1,865	474	-136
FINANCING ACTIVITIES
Cash flow from financing activities	1,103	1,038	1,141	114	-869	-1,896
Cash flow during the period	-171	-467	-114	-1,751	-395	-2,031
Cash and cash equivalents at beginning of period	591	1,279	534	2,561	813	2,561
Effects of exchange rate changes on cash and cash equivalents	2	2	3	2	5	4
Cash and cash equivalents at end of period	423	813	423	813	423	534
Short-term investments due later than three months	454	367	454	367	454	394
Total liquid assets at end of period	877	1,180	877	1,180	877	928

Condensed consolidated net debt

	Jan-Jun		R12 Jul-Jun	Jan-Dec
Net debt, SEK M	2023	2022	2022/2023	2022
Net cash +/Net debt - opening balance	-3,000	-2,932 -	-4,383	-2,932
- Cash flow from operating activities	-818	-1,797	1,244	265
- Cash flow from investing activities	-437	-67	-770	-401
Cash flow before financing	-1,255	-1,865	474	-136
Change in provisions/receivables for pensions	366	1,183	1,248	2,066
Change in leasing debt	-294	-168	-502	-376
Paid dividend	-293	-323	-588	-618
Acquisition/sale of treasury shares	-	-283	-726	-1,009
Currency exchange differences in cash and cash equivalents	3	2	5	4
Net cash + /Net debt - closing balance	-4,472	-4,383	-4,472	-3,000
- Whereof provisions/receivables for pensions	434	-814	434	68
- Whereof leasing debt	-1,529	-1,585	-1,529	-1,507
- Whereof other net cash/net debt	-3,377	-1,984	-3,377	-1,561

Parent Company condensed income statement

		Q2		Jan-Jun		R12 Jul-Jun	Jan-Dec
SEK M	Note 1	2023	2022	2023	2022	2022/2023	2022
Net sales		11	11	20	21 -	152	153
Selling and administrative expenses		-67	-75	-131	-131	-232	-231
Operating profit		-56	-64	-111	-109	-80	-78
Result from participations in Group companies		1,125	1,081	1,125	1,081	1,125	1,081
Result from other financial fixed assets		-	-	14	13	14	13
Result from financial current assets		4	-	7	-	8	1
Interest expense and similar items		-3	-2	-10	-5	-16	-10
Result after financial items		1,071	1,015	1,025	979	1,051	1,006
Appropriations		-	-	-	-	233	233
Tax on net profit/loss for the period		7	16	19	24	-38	-34
Net profit/loss for the period		1,078	1,031	1,044	1,003	1,246	1,205

Net sales pertain to charges to Group companies. The average number of employees was 63 (57).

Parent Company condensed balance sheet

SEK M	Note 1	30 Jun 2023	30 Jun 2022	31 Dec 2022
ASSETS
Tangible fixed assets		0	0	0
Financial fixed assets		4,573	4,585	4,562
Total fixed assets		4,574	4,585	4,562
Current receivables		74	215	603
Treasury balances in NCC Treasury AB		745	743	213
Total current assets		819	958	816
Total assets		5,393	5,543	5,378
SHAREHOLDERS´ EQUITY AND LIABILITIES
Shareholders´ equity		4,982	5,037	4,532
Provisions		6	6	6
Long-term liabilities		1	4	3
Current liabilities		405	496	836
Total shareholders´ equity and liabilities		5,393	5,543	5,378

Total approved dividends amounted to SEK 586 M, of which SEK 293 M was paid in April and SEK 293 M will be paid in November.

Notes

Note 1.Accounting policies

This interim report has been compiled pursuant to IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The interim report has been prepared in accordance with the International Financial Reporting Standards (IFRS), as approved by the European Union (EU).

A small number of changes to existing standards and interpretations came into effect for the fiscal year commencing after January 1, 2023. IFRS 17 Insurance contracts was adopted by the EU in November 2021 and came into force on January 1, 2023. In its evaluation of the new standard, NCC made the assessment that it will not result in any changes for the Group. Other changes that came into force on January 1, 2023 had no material impact on this financial report either.

Parent Company

The Parent Company has prepared its interim report pursuant to the Swedish Annual Accounts Act 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 2022 Annual Report (Note 1 and in connection with the subsequent notes).

Note 2.Depreciation/amortization

	Q2 Jan-Jun			R12 Jul-Jun	Jan-Dec
SEK M	2023	2022	2023	2022	2022/2023	2022
Other intangible assets	-14	-12	-26	-24	-52	-50
Owner-occupied properties ¹	-78	-70	-142	-142	-307	-307
Machinery and equipment ²	-214	-221	-421	-439	-856	-874
Total depreciation	-306	-303	-589	-605	-1,215	-1,231

1) Whereof depreciation of right-of-use assets for the quarter SEK -66 M (-58), for the period SEK -119 (-118) M and for rolling twelve SEK -247 M.

2) Whereof depreciation of right-of-use assets for the quarter SEK -77 M (-84), for the period SEK -153 (-165) M and for rolling twelve SEK -311 M.

Note 3.Right-of-use assets

SEK M	30 Jun 2023	30 Jun 2022	31 Dec 2022
Owner-occupied properties	885	876	864
Machinery and equipment	566	625	555
Land leases¹	1	2	2
Total right-of-use assets	1,452	1,504	1,422

1) Land leases are classified as current assets.

Note 4.Segment reporting

		NCC	NCC
	NCC	Building	Building	NCC	NCC Property	Total	Other and
Q2 2023	Infrastructure	Sweden	Nordics	Industry	Development	segments	eliminations ¹	Group
Net sales, external	4,479	3,415	3,565	3,295	61	14,816	39	14,854
Net sales, internal	123	328	191	175	-	817	-817	-
Net sales, total	4,602	3,743	3,756	3,471	61	15,633	-778	14,854
Operating profit	140	73	94	281	-37	552	-49	503
Net financial items	-	-	-	-	-	-	-	-10
Profit/loss after financial items	-	-	-	-	-	-	-	493

		NCC	NCC
	NCC	Building	Building	NCC	NCC Property	Total	Other and
Q2 2022	Infrastructure	Sweden	Nordics	Industry	Development	segments	eliminations ¹	Group
Net sales, external	4,234	3,439	3,094	3,108	58	13,934	68	14,001
Net sales, internal	125	340	252	172	-	888	-888	-
Net sales, total	4,359	3,778	3,346	3,280	58	14,821	-820	14,001
Operating profit	124	117	92	240	1	575	-101	474
Net financial items	-	-	-	-	-	-	-	-10
Profit/loss after financial items	-	-	-	-	-	-	-	464

		NCC	NCC
	NCC	Building	Building	NCC	NCC Property	Total	Other and
January - June 2023	Infrastructure	Sweden	Nordics	Industry	Development	segments	eliminations ²	Group
Net sales, external	8,326	6,557	6,827	4,301	1,208	27,217	101	27,319
Net sales, internal	211	677	433	228	-	1,548	-1,548	-
Net sales, total	8,536	7,234	7,259	4,529	1,208	28,766	-1,447	27,319
Operating profit	208	133	112	20	219	692	-37	655
Net financial items	-	-	-	-	-	-	-	23
Profit/loss after financial items	-	-	-	-	-	-	-	678

		NCC	NCC
	NCC	Building	Building	NCC	NCC Property	Total	Other and
January - June 2022	Infrastructure	Sweden	Nordics	Industry	Development	segments	eliminations ²	Group
Net sales, external	7,609	6,226	5,699	4,035	388	23,958	155	24,113
Net sales, internal	250	652	502	221	-	1,625	-1,625	-
Net sales, total	7,860	6,877	6,201	4,257	388	25,582	-1,470	24,113
Operating profit	166	210	148	-65	31	489	-185	304
Net financial items	-	-	-	-	-	-	-	-15
Profit/loss after financial items	-	-	-	-	-	-	-	289

1) The figures for the quarter include among others NCC's head office and results from small subsidiaries and associated companies, totalling SEK -87 M (-71). Further, the figures includes eliminations of internal profits of SEK -18 M (-16) and other Group adjustments of SEK 56 M (-14). These items primarly correspond to pensions and leases.

2) The figures for the period include among others NCC's head office and results from small subsidiaries and associated companies, totalling SEK -158 M (-132). Further, the figures includes eliminations of internal profits amounting of SEK 5 M (-29) and other Group adjustments of SEK 116 M (-25). These items primarly correspond to pensions and leases.

Note 5.Fair value of financial instruments

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

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

forward contracts and electricity forward contracts used for hedging purposes.

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

SEK M	30 Jun 2023				30 Jun 2022				31 Dec 2022
	Level			Level			Level
	1	2	3	Tot	1	2	3	Tot	1	2	3	Tot
Financial assets measured at fair value through profit and loss
Short-term investments	399			399	352			352	374			374
Derivative instruments		13		13		19		19		34		34
Derivative instruments used in hedge accounting		88		88		166		166		117		117
Financial assets measured at fair value through other comprehensive income
Equity instruments			68	68			68	68			68	68
Total assets	399	101	68	568	352	185	68	605	374	151	68	593
Financial liabilities measured at fair value through profit and loss
Derivative instruments		23		23		11		11		3		3
Derivative instruments used in hedge accounting		11		11		10		10		6		6
Total liabilities	0	34	0	34	0	21	0	21	0	9	0	9

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

SEK M	30 Jun 2023		30 Jun 2022		31 Dec 2022
	Carrying amount	Fair value	Carrying amount	Fair value	Carrying amount	Fair value
Long-term interest-bearing receivables - amortized cost	215	206	197	190	184	175
Short-term investments - amortized cost	55	55	15	15	20	20
Long-term interest-bearing liabilities	3,787	3,734	2,444	2,412	3,286	3,240
Current interest-bearing liabilities	2,380	2,380	2,606	2,604	1,012	1,012

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

Note 6.Pledged assets, contingent liabilities and guarantee obligations

SEK M
Group	30 Jun 2023	30 Jun 2022	31 Dec 2022
Assets pledged	433	424	424
Contingent liabilities and guarantee obligations ¹	226	232	249
Parent company
Contingent liabilities and guarantee obligations ¹	32,341	28,903	30,167

1) In the comparison periods NCC AB had sureties which were indemnified by Bonava AB based on a Master Separation Agreement. These sureties are completed as of June 2023.

Summary of key figures

	Q2		R12 Jul-Jun		Jan-Dec
	2023	2022	2022/2023	2022	2021	2020	2019
Profitability ratios
Return on shareholders equity, % ¹	20	27	20	17	32	37	32
Return on capital employed, % ¹	14	15	14	12	16	12	13
Financial ratios at period-end
EBITDA % including effects of dividends	5.4	5.6	5.1	4.8	5.9	5.2	4.7
Interest-coverage ratio, times ¹	27	23	27	16	23	13	9
Equity/asset ratio, %	22	20	22	24	20	14	10
Interest bearing liabilities/total assets, %	18	19	18	15	21	26	25
Net cash +/ Net debt -, SEK M	-4,472	-4,383	-4,472	-3,000	-2,932	-4,823	-4,489
Debt/equity ratio, times	0.6	0.7	0.6	0.4	0.5	1.2	1.5
Capital employed at period end, SEK M	13,612	12,191	13,612	11,480	12,055	11,375	10,382
Capital employed, average, SEK M	12,202	11,575	12,202	11,766	11,430	10,983	9,936
Capital turnover rate, times¹	4.7	4.7	4.7	4.6	4.7	4.9	5.9
Closing interest rate, % ³	4.9	2.0	4.9	4.1	1.1	1.1	1.1
Average period of fixed interest, years ³	0.7	0.6	0.7	1.0	0.5	1.0	1.2
Per share data
Profit/loss after tax, before and after dilution, SEK	4.17	3.59	14.02	10.29	14.02	11.68	8.09
Cash flow from operating activities, before and after dilution, SEK	-10.33	-13.29	12.52	2.55	21.00	14.56	20.50
Cash flow before financing, before and after dilution, SEK	-13.05	-14.10	4.77	-1.30	17.62	10.26	14.01
P/E ratio ¹	7	7	7	9	12	13	19
Dividend, ordinary, SEK	-	-	6.00	6.00	6.00	5.00	2.50
Dividend yield, %	-	-	6.4	6.2	3.6	3.3	1.6
Shareholders´ equity before and after dilution, SEK	76.29	60.20	76.29	73.60	54.32	36.89	28.21
Share price/shareholders´ equity, %	124	171	124	132	309	407	543
Share price at period-end, NCC B, SEK	94.25	102.90	94.25	97.25	167.70	150.00	153.20
Number of shares, millions
Total number of issued shares ² ⁴	99.8	108.4	99.8	108.4	108.4	108.4	108.4
Treasury shares at period-end	2.2	3.3	2.2	10.8	0.8	0.8	0.5
Total number of shares outstanding at period-end before and after dilution	97.6	105.1	97.6	97.6	107.6	107.7	107.9
Average number of shares outstanding before and after dilution during the period	97.6	106.7	99.3	103.9	107.6	107.8	108.0
Market capitalization before and after dilution, SEK M	9,223	11,176	9,223	9,636	18,035	16,144	16,548
Personnel
Average number of employees	12,273	12,551	12,273	12,485	13,002	14,388	15,273

1) Calculations are based on the rolling 12 month period.

2) All shares issued by NCC are common shares.

3) Refers to interest-bearing liabilities excluding pension liabilities according to IAS 19 and leases according to IFRS 16.

4) Withdrawal of 8 674 866 own shares series B has been made during the period.

For definitions of key figures, see https://ncc.com/investor-relations/ncc-share/financial-definitions/

Invitation to presentation of the Interim Report for the second quarter of 2023

NCC's President and CEO Tomas Carlsson and Chief Financial Officer Susanne Lithander will present the halfyear report in an audiocast and teleconference on July 18, 2023 at 9:00 a.m. (CEST). The presentation will be held in English.

Presentation material will be available at ncc.com/ir from approximately 8:00 a.m. (CEST).

Link to audiocast: Audiocast Q2

To participate by phone, please call one of the following numbers five minutes prior to the start of the conference.

SE: +46 8 505 100 31 UK: +44 207 107 06 13 US: +1 631 570 56 13

For further information, please contact:

Susanne Lithander

Chief Financial Officer (CFO) tel. +46 730 37 08 74

Maria Grimberg

Head of Communication & Investor Relations tel. +46 708 96 12 88

Financial calendar

Interim report Q3 and Jan-Sep 2023	October 31, 2023
Interim report Q4 and Jan-Dec 2023	January 30, 2024
Interim report Q1 2024	May 3, 2024
Interim report Q2 and Jan-June 2024	July 16, 2024

This is the type of information that NCC AB is obligated to disclose pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was issued for publication through the agency of the contact persons set out above, on July 18, 2023, at 7:10 a.m. CEST.

In cooperation with Kristianstad Municipality, NCC is to conduct the remodeling and extension of the municipality's central treatment plant. NCC has extensive experience in constructing and upgrading water and sewage infrastructure and is the only construction company in Sweden that has the expertise for the complete water and sewage process, meaning that NCC is thus able to build and install turnkey water plants and sewage plants.

Website ncc.com E-mail ir@ncc.se

Visitor address Herrjärva torg 4, SE-170 80 Solna Postal address NCC AB, SE-170 80 Solna, Sweden Telephone +46 8 585 510 00