NCC Group

Interim / Quarterly Report • Jul 19, 2019

Interim report ^for second quarter and first half ^of 2019

Photo: Water Tower, Helsingborg, Sweden

Change process continuing – large order backlog

Second quarter 2019 First half of 2019

• Orders received amounted to SEK 16,070 M (13,834)
• Net sales totaled SEK 14,610 M (14,349)
• Operating profit amounted to SEK 411 M (452)
• Profit after financial items totaled SEK 380 M (427)
• Profit after tax was SEK 322 M (341)
• Earnings per share after dilution were SEK 2.85 (3.12)

• Restructuring costs amounted to approximately SEK 20 M

• Orders received amounted to SEK 31,572 M (31,355)

• Net sales totaled SEK 26,044 M (25,244)
• Operating profit was SEK 59 M (88)
• Profit after financial items totaled SEK 9 M (55)
• Profit after tax was SEK 8 M (45)
• Earnings/loss per share after dilution were SEK -0.03 (0.39)

	2019	2018	2019	2018	Jul. 18-	2018
Group, SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.
Orders received	16,070	13,834	31,572	31,355	62,058	61,842
Order backlog	63,027	58,741	63,027	58,741	63,027	56,837
Net sales	14,610	14,349	26,044	25,244	58,146	57,346
Operating profit/loss	411	452	5 9	8 8	-793	-764
Profit/loss after financial items	380	427	9	5 5	-895	-849
Net profit/loss for the period	322	341	8	4 5	-787	-750
Profit/loss per share after dilution, SEK	2.85	3.12	-0.03	0.39	-7.43	-7.00
Cashflow from operating activities	-889	-1,430	-834	-2,014	804	-375
Cashflow before financing	-1,109	-1,710	-1,249	-2,525	119	-1,157
Net cash +/net debt -	-6,352	-3,084	-6,352	-3,084	-6,352	-3,045
For definitions of key figures, see w w w	.ncc.group/ Investor-relations/ Financial-data/ Financial-definitions
Figures for the current quarter w hen applying IAS 17 Leases instead of IFRS 16 Leases are show					n in a proforma income statement and balance sheet as
w ell as cash flow	. The operations of Road Services are reported separately in this interim report in accordance w ith IFRS 5 Non- current Assets Hels for

w ell as cash flow . The operations of Road Services are reported separately in this interim report in accordance w ith IFRS 5 Non- current Assets Hels for Sale and Discontinued Operations, see accounting principles on page 16.

CEO Tomas Carlsson comments

In the second quarter, NCC continued to work systematically with our change process. We are making good progress with many ongoing projects and initiatives, even though it will take time before we see concrete results in all parts of the operations.

The favorable and stable market has continued for all our business areas. Despite the slowdown in the housing market, NCC's orders received for housing projects has remained high. In Sweden, rental units accounted for most orders received for housing.

Overall, orders received increased year-on-year, mainly driven by very strong orders received in Building Nordics and Infrastructure. The total order backlog is NCC's highest to date.

Efforts to turn earnings around in the Infrastructure business area are continuing. This is a long-term process. Orders received increased year-on-year and the result was strengthened, partly due to the positive impact of settled disputes, primarily in Norway. The prudent profit recognition in projects continues to impact the operating result.

In the Building Sweden business area, orders received in the second quarter were lower year-on-year. The difference was mainly because no large projects orders were booked in the quarter, but we see continued favorable opportunities and many projects in advanced stages of the sales pipeline.

The Building Nordics business area posted a strong quarter with highly robust orders received of SEK 6.2 billion. These included three major housing projects in Denmark with a total order value of just over SEK 3.4 billion: Kronløbsøen, Nicolinehus and a housing project in Tuborg Havn in Hellerup. NCC has been working on these projects for some time and can now register these among orders in the same quarter.

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 SEK M

The stable performance of the Industry business area continued. Volumes were slightly lower year-on-year, partly due to the discontinuation of unprofitable production and the demand from a few individual projects.

In business area Property Development one new property development project commenced during the quarter comprising a large e-commerce warehouse for ICA Sweden. One project was recognized in profit. On September 1, we will welcome Joachim Holmberg as new head of the business area.

At this time last year, I had initiated a review of the company, which subsequently led to a robust action program in the autumn and a different view of risk.

In a market with many opportunities, our focus now is on choosing the right projects with the right level of risk in a disciplined manner. We have improved our internal processes and are putting profitability before growth across the entire business. Our journey of change has only just begun, and we are mobilizing to build a strong foundation for long-term stable and profitable future growth.

Tomas Carlsson, President and CEO Solna, July 19, 2019

.

Order backlog Net sales and result after financial items

Group performance

Second quarter and first half of 2019

Market

Market conditions were generally favorable also in the second quarter. The economies of the Nordic countries were stable.

Demand for schools, hospitals and homes for the elderly was strong, driven by growing cities and the demographic trend. Despite a slowdown from high levels, the market for housing, and demand for renovation and refurbishment, remained favorable.

Public-sector infrastructure initiatives are fueling the Nordic infrastructure market, resulting in a continued strong market in Norway and Sweden.

In the industrial segment, a strong civil engineering market is driving demand for asphalt and stone materials in Norway and Sweden.

Low yield requirements from investors and high demand for new premises that are modern and sustainable, primarily in major city areas, are providing favorable market conditions in the Nordic property market.

Orders received and order backlog

Orders received amounted to SEK 16,070 M (13,834) in the second quarter, and to SEK 31,572 M (31,355) during the first half-year. The higher orders received during the quarter were mainly attributable to three large housing projects in Denmark, totaling just over SEK 3.4 billion: Kronløbsøen, Nicolinehus and housing units in Tuborg Havn. Changes in exchange rates had a positive impact of SEK 421 M (408) on orders received.

The Group's order backlog was SEK 63,027 M (58,741) at the end of the quarter, an increase that is mainly due to higher orders received in Building Nordics. Changes in

exchange rates impacted the order backlog by SEK 869 M (1,301).

Net sales and earnings

Net sales amounted to SEK 14,610 M (14,349) in the second quarter, and to SEK 26,044 M (25,244) during the first halfyear. The increase in net sales during the quarter was attributable to Building Nordics, Property Development and Industry. Changes in exchange rates had a positive impact of SEK 241 M (330) on sales.

NCC's operating profit amounted to SEK 411 M (452) for the second quarter and to SEK 59 M (88) for the first half-year. Operating profit was impacted by costs for turnaround activities and the ongoing divestment of operations in Road Services.

Net financial items for the January-June period amounted to SEK -50 M (-34). Net financial items declined SEK 20 M due to additional lease liabilities in accordance with IFRS 16 Leases.

Cash flow

Cash flow before financing was SEK -1,249 M (-2,525). The improvement was attributable to higher cash flow from operating activities, which amounted to SEK -834 M (-2,014). Business area Industry has a seasonably low cash flow in the second quarter. At the end of the period, total cash and cash equivalents amounted to SEK 726 M (752).

At June 30, the Group's net debt amounted to SEK -6,352 M (-3,084). The increase was mainly due to the new accounting policy, IFRS 16 Leases, and higher pension debt in the second half of 2018. The Group has a strong financial position and, in absolute terms, a low level of indebtedness.

	2019	2018	Jul. 18-	2018
Net debt, SEK M	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.
Net debt, opening balance	-3,045	-149	-3,084	-149
- Cash flow from operating activities	-834	-2,014	805	-375
- Cash flow from investing activities	-415	-511	-686	-782
Cash flow before financing	-1,249	-2,525	119	-1,157
Leasing - IFRS 16-effect	-1,743		-1,743
Acquisition/Sale of treasury shares	-19	-11	-19	-11
Change of provisions for pensions	-90	-9	-953	-872
Currency exchange differences in cash and cash equivalents	2 8	4 2	-6	8
Paid dividend	-234	-433	-665	-864
Net cash + /net debt - closing balance	-6,352	-3,084	-6,352	-3,045
- Whereof provisions for pensions	-2,369	-1,416	-2,369	-2,279
- Whereof leasing according to IFRS 16	-1,894		-1,894
- Whereof other netdebt	-2,089	-1,668	-2,089	-766

At June 30, the Group's total assets amounted to SEK 30,579 M (30,312). Total assets for the period include the new accounting policy IFRS 16 Leases. IAS 17 Leases has been applied for the comparative period; refer also to the "Condensed consolidated balance sheet."

At the end of the quarter, the average maturity period for the interest-bearing liabilities, excluding pension debt according to IAS 19 and lease liabilities according to IFRS 16 Leases, was 21 months (25). At June 30, 2019, NCC's unutilized committed lines of credit totaled SEK 3.7 billion (3.6), with an average remaining maturity of 27 (38) months.

Capital employed

At June 30, capital employed amounted to SEK 10,091 M (9,268). The increase was attributable to the adoption of IFRS 16 Leases, lower accounts receivable and lower interest-free liabilities. Return on capital employed was -9 percent (5) during the first half-year.

Financial targets

NCC has established the following financial targets at Group level: return on equity ≥20%, operating margin ≥4%, net debt <2.5 times EBITDA. NCC's dividend policy is to distribute at least 40 percent of after-tax profit for the year.

Operating margin

Net debt excludes pension debt and lease liability in accordance with IFRS 16 Leases. EBITDA refers to operating profit according to the income statement, with reversal of depreciation and impairment according to Notes 2 and 3.

NCC has not yet achieved its financial targets and lies above the limit for net debt/EBITDA, which was strongly impacted by the negative result delivered by the Group last year. The Group still has a strong financial position and, in absolute terms, a low level of indebtedness.

Safety

Safety is a high priority and NCC has a zero vision with respect to worksite accidents. The accident frequency rate* for the second quarter was lower than in the preceding quarter and the year-on-year quarter, and for full-year 2018. An improved and systematic way of working, where best practice and successfully tested methods have been utilized across the Group, has led to a lower rate of accidents. Units with historically high accident rates have received support to reduce the number of accidents. In conducting its safety work, NCC has prioritized measures to reduce serious accidents.

*Accident frequency: Worksite accidents resulting in several days of absence from work per million worked hours.

NCC Infrastructure

Second quarter and first half of 2019

Orders received and order backlog

In the second quarter, orders received increased in all divisions. In total for the business area, orders received rose to SEK 3,428 M (2,738) in the second quarter. For the first half-year, orders received amounted to SEK 8,267 M (11,022), where the year-on-year difference was attributable to registration of the Centralen project (SEK 4.7 billion) in Gothenburg among orders in the first quarter of 2018.

The order backlog increased to SEK 21,770 M (20,161) at the end of the quarter.

Net sales and earnings

Net sales amounted to SEK 4,192 M (4,325) in the second quarter, and to SEK 7,841 M (7,913) for the first half-year. The slightly lower sales were partly due to completion of the Next Generation project, a board facility on behalf of Billerud Korsnäs, during the spring.

Operating profit was SEK 81 M (26) in the second quarter, and SEK 89 M (69) for the first half-year. The improvement includes a positive impact of SEK 45 M on earnings generated by the settlement of disputes primarily in Norway. Adjusted for this the operating profit was SEK 36 M. Compared with the second quarter of 2018, operating profit was impacted by a higher level of zero recognition, meaning no recognition of earnings in early-stage projects where the risks in these projects are difficult to assess. Due to impairment losses on projects toward the end of 2018, the work-up rate in these projects generated a lower margin.

Operating margin was 1.9 (0.6) percent but adjusted for reversed reservations the operating margin was 0.9 percent.

Product mix

Orders received Jan.-Jun.

	2019	2018	2019	2018	Jul. 18-	2018
NCC Infrastructure, SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.
Orders received	3,428	2,738	8,267	11,022	18,517	21,271
Order backlog	21,770	20,161	21,770	20,161	21,770	21,037
Net sales	4,192	4,325	7,841	7,913	16,864	16,936
Operating profit/loss	8 1	2 6	8 9	6 9	-723	-743
Financial target:
Operating margin, % 1)	1.9	0.6	1.1	0.9	-4.3	-4.4
1) Target: operating margin ≥ 3.5%

NCC has decided to divest the Road Services operation. The division is therefore presented separately from the fourth quarter of 2018.

	2019	2018	2019	2018	Jul. 18-	2018
NCC Road Services, SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.
Orders received	268	1,003	1,117	2,216	2,510	3,609
Order backlog	3,679	3,957	3,679	3,957	3,679	3,749
Net sales	635	665	1,297	1,371	2,781	2,855
Operating profit/loss	6	2 5	1	-30	-219	-251

NCC Building Sweden

Second quarter and first half of 2019

Orders received and order backlog

Housing units accounted for more than one-third of orders received during the quarter and, together with Renovation/Refurbishment, represented the largest proportion of orders received. Overall, orders received declined to SEK 2,368 M (3,111) in the second quarter, and to SEK 4,947 M (6,788) in the first half-year.

The order backlog declined and amounted to SEK 16,261 M (18,422) at the end of the quarter, due to lower orders received.

Net sales and earnings

Net sales amounted to SEK 3,726 M (4,057) in the second quarter, and to SEK 7,394 M (7,706) for the first half-year, which was slightly lower year-on-year. The work-up rate in Housing and Renovation/Refurbishment was in line with the preceding year for just over half of net sales.

Operating profit amounted to SEK 76 M (147) in the second quarter and to SEK 185 M (258) for the first half-year. Compared with the year-on-year quarter, the result was impacted by a more cautious approach to risk.

Operating profit was negatively impacted by a provision of SEK 37 M for penalty and court costs relating to a ruling by a District Court regarding the Rågården project in Building Sweden. Adjusted for this amount, operating profit would have been SEK 113 M and the operating margin would have been 3.0 percent. The Infrastructure business area also set aside a minor provision for the Rågården project.

Product mix

Orders received Jan.-Jun.

Net sales Jan.-Jun.

• Offices 6 (8)%
• Residential 30 (35)%
• Industry/Logistics 5 (4)%
• Refurbishment/Conversion 21 (19)%
• Retail 0 (2)%
• Health Care 11 (13)%
• Educational 10 (8)%
• Public Buildings 11 (7)%
• Other 6 (4)%

	2019	2018	2019	2018	Jul. 18-	2018
NCC Building Sweden, SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.
Orders received	2,368	3,111	4,947	6,788	13,234	15,075
Order backlog	16,261	18,422	16,261	18,422	16,261	18,709
Net sales	3,726	4,057	7,394	7,706	15,389	15,701
Operating profit/loss	7 6	147	185	258	381	453
Financial target:
Operating margin, % 1)	2.0	3.6	2.5	3.3	2.5	2.9

1) Target: operating margin ≥ 3.5%

NCC Building Nordics

Second quarter and first half of 2019

Orders received and order backlog

Orders received for Building Nordics increased to SEK 6,210 M (3,349) in the second quarter, and to SEK 10,396 M (5,264) for the first half-year. The increase was mainly due to higher orders received in the Danish operations, through three major registered project orders – Kronløbsøen for SEK 1.5 billion, Nicolinehus for SEK 1.4 billion and a housing project in Tuborg Havn for SEK 0.5 billion. In the second quarter, orders received increased for housing projects and now represent the largest segment for the first half-year.

At the end of the period, the order backlog amounted to SEK 16,738 M (11,501).

Net sales and earnings

Net sales increased to SEK 2,803 M (2,571) in the second quarter, and to SEK 5,370 M (4,870) for the first half-year. The increase was mainly attributable to Finland, which is the largest market in terms of sales.

Building Nordics' net sales during the first half-year largely comprised housing production and renovation, mainly in Denmark and Finland.

Operating profit was SEK 46 M (34) for the second quarter, and SEK 80 M (45) for the first half-year.

The result for the quarter was higher than in the preceding year, mainly due to increased sales and better project margins. All countries delivered a positive operating result for the quarter, but the year-on-year improvement was attributable to Norway and Finland.

Product mix

Orders received Jan.-Jun.

Net sales Jan.-Jun.

Offices 13 (16)%

Offices 10 (7)% Residential 37 (29)% Industry/Logistics 2 (3)%

Retail 0 (0)% Health Care 14 (1)% Educational 12 (12)% Public Buildings 2 (0)% Other 2 (9)%

• Residential 33 (28)%
• Industry/Logistics 6 (3)%
• Refurbishment/Conversion 30 (28)%

Refurbishment/Conversion 21 (39)%

• Retail 1 (2)%
• Health Care 2 (4)%
• Educational 10 (10)%
• Public Buildings 2 (3)%
• Other 3 (6)%

	2019	2018	2019	2018	Jul. 18-	2018
NCC Building Nordics, SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.
Orders received	6,210	3,349	10,396	5,264	16,362	11,229
Order backlog	16,738	11,501	16,738	11,501	16,738	11,313
Net sales	2,803	2,571	5,370	4,870	11,253	10,753
Operating profit/loss	4 6	3 4	8 0	4 5	-192	-227
Financial target:
Operating margin, % 1)	1.6	1.3	1.5	0.9	-1.7	-2.1

1) Target: operating margin ≥ 3.5%

NCC Industry

Second quarter and first half of 2019

Net sales and earnings

Net sales increased slightly year-on-year to SEK 3,721 M (3,625) in the second quarter, and to SEK 4,985 M (4,791) for the first half-year. The increase in the second quarter was attributable to higher activity in the Swedish and Norwegian asphalt operations.

Operating profit was SEK 322 M (324) in the second quarter, while the result for the first half-year was SEK -63 M (-87). Operating profit for the quarter improved in Hercules Norway due to the restructuring completed last year.

Operating profit declined due to lower volumes in the stone materials operations, but this was partly offset by an improved product mix during the quarter. Compared with the preceding year, volumes were affected by the discontinuation of unprofitable production as well as some individual projects.

An improved margin in the asphalt operations largely offset some of the lower volumes in the asphalt operations during the quarter. During the first half-year, the operating result improved in Hercules but weakened in the stone materials operations.

Capital employed

Capital employed increased seasonally to SEK 6.4 billion, an increase of SEK 1.5 billion, both as a result of the transition to IFRS 16 Leases and increased working capital.

Geographical breakdown

Net sales Jan.-Jun.

	2019	2018	2019	2018	Jul. 18-	2018
NCC Industry, SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.
Orders received	3,991	4,106	7,362	6,972	13,333	12,943
Order backlog	5,487	5,380	5,487	5,380	5,487	3,092
Net sales	3,721	3,625	4,985	4,791	13,162	12,968
Operating profit/loss	322	324	-63	-87	375	350
Capital employed	6,397	5,733	6,397	5,733	6,397	4,902
Stone materials, tons 1)	7,999	9,083	13,215	14,389	28,101	29,275
Asphalt, tons 1)	1,904	2,063	2,070	2,168	6,317	6,415
Financial targets:
Operating margin, % 2)	8.6	8.9	-1.3	-1.8	2.8	2.7
Return on capital employed, % 3)					6.7	7.1

1) Sold volume

2) Target: operating margin ≥ 4%

3) Target: return on capital employed ≥ 10%

NCC Property Development

Second quarter and first half of 2019

Net sales and earnings

Net sales amounted to SEK 321 M (115) in the second quarter, and to SEK 732 M (400) for the first half-year. One project was recognized in profit during the second quarter – Brunna 4 in Sweden. In the year-earlier period, one project was recognized in profit in Denmark.

Operating profit was SEK 40 M (-16) in the second quarter, and SEK 21 M (0) for the first half-year. Earnings from profit-recognized projects, sales of land and previous sales contributed to the result for the first half-year. In the preceding year, the result was derived from two profitrecognized projects and one sale of land.

Property projects

One project was recognized in profit during the second quarter – Brunna 4 in Sweden. A total of four projects were recognized in profit during the first half-year.

In the second quarter, the construction of a logistics project commenced, Arendal 4 in Sweden. During the first half-year, the construction of three projects commenced.

The Multihuset project in Sweden was divested during the quarter and is expected to be completed and recognized in profit during the fourth quarter of 2019.

Letting amounted to 59,400 square meters (11,400) for the first half-year, including 28,400 square meters (5,300) in the second quarter.

At the end of the second quarter, 17 projects (21) were either ongoing or completed but not yet recognized in profit. The costs incurred in all projects amounted to SEK 4.6 billion (2.9), corresponding to a total completion rate of 47 percent (61). The letting rate was 57 percent (61). The operating net amounted to SEK 16 M (23) for the first halfyear, and to SEK 9 M (12) in the second quarter.

Geographical breakdown

Net sales Jan.-Jun.

Capital employed

Investments in ongoing projects increased capital employed, which totaled SEK 5.5 billion at the end of the quarter, up SEK 0.8 billion compared with the first quarter of 2019.

	2019	2018	2019	2018	Jul. 18-	2018
NCC Property Development, SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.
Net sales	321	115	732	400	2,490	2,157
Operating profit/loss	4 0	-16	2 1	0	-160	-181
Capital employed	5,534	4,985	5,534	4,985	5,534	4,314
Financial targets:
Operating margin, % 1)	12.5	-13.9	2.9	0	-6.4	-8.4
Return on capital employed, % 2)					-6.0	-3.9

1) Target: operating margin ≥ 10%

2) Target: return on capital employed ≥ 10%

NCC Property Development

Property development projects as of 2019-06-30 1)

Ongoing Property development projects

			Sold,
			estimated	Comple	Lettable	Letting
			recognition in	tion	area	ratio,
Project	Type	Location	profit	ratio, %	(sqm)	%
Flintholm 2	Office	Copenhagen	Q4 2019	88	9,300	100
Frederiks Plads 2	Office	Århus		24	17,000	56
CH Vallenbaek 4.2	Other	Vallensbæk		61	5,300	46
Total Denmark				50	31,600	68
Fredriksberg B	Office	Helsinki		45	6,500	20
Fredriksberg C	Office	Helsinki		44	4,600	0
Total Finland				45	11,100	11
Valle View	Office	Oslo		21	22,500	69
Total Norway				21	22,500	69
Arendal 4	Logistics	Gothenburg		16	8,600	100
K11	Office	Solna		73	12,200	2
K12	Office	Solna		82	21,700	94
Kineum Gårda	Office	Gothenburg	2)	38	21,300	76
Multihuset	Other	Malmö	Q4 2019	91	19,800	60
Bromma Blocks	Office	Stockholm		27	52,300	40
Total Sweden				46	135,900	58
Total				44	201,100	57

Completed Property development projects

x

x

Project	Type	Location	Sold, estimated recognition in profit	Lettable area (sqm)	Letting ratio, %
Skejby CH Alfa	Office	Århus	Q3 2019	6,300	36
CH Vallenbaek 4.1	Office	Vallensbæk		7,000	60
Viborg Retail II+III	Retail	Viborg		900	0
Zleep Hotel	Other	Århus	Q3 2019	3,200	100
Total Denmark				17,400	59
Total Finland				0	0
Valle 1	Office	Oslo		7,700	90
Total Norway				7,700	90
Total Sweden				0	0
Total				25,100	70

1) The table refers to ongoing or completed property projects that have not yet been recognized as revenue. In addition to these projects, NCC also focuses on rental (rental guarantees / additional purchase) in eight previously sold and revenue recognized property projects, a maximum of approximately 50 MSEK.

2) The project comprises rentable area of an existing building of approximately 16,000 square meters and an additional building right about 30,000 square meters of office space. The project is carried out together w ith Platzer, a sw edish listed real estate company, in a half-ow ned company. The information in the table refers to NCC's share of the project.

Property projects Letting

Other

Significant risks and uncertainties

An account of the risks to which NCC may be exposed is presented in the 2018 Annual Report (pages 17 -19). This description remains relevant.

Related -party transactions

Related parties are NCC's subsidiaries, associated companies and joint arrangements. In the second quarter, related -party sales amounted to SEK 16 M (518) and purchases to SEK 11 M (9). In the first half -year, sales amounted to SEK 26 M (1,049) and purchases to SEK 16 M (13).

Seasonal effects

NCC Industry's operations and certain operations in NCC Building and NCC Infrastructure are impacted by seasonal variations due to cold weather. Earnings in the first quarter are normally weaker than the rest of the year.

Repurchase of shares

NCC AB holds 402,050 Series B treasury shares to meet its obligations pursuant to long -term incentive programs.

New accounting policies

NCC has applied IFRS 16 Leases as of January 1, 2019. Read more on page 17.

Other significant events

Joachim Holmberg will become new head of the NCC Property Development business area at the latest by September 1, 2019. He will be coming to NCC from Skanska, where he has been responsible for commercial property development in Skanska Sweden. For more information, refer to www.ncc.se.

Dividends

NCC's Annual General Meeting (AGM) on April 9, 2019 resolved to approve a dividend of SEK 4.00 per share, divided into two payments. The first dividend of SEK 2.00 per share was paid out in April. The second dividend of SEK 2.00 will be paid out on November 5, 2019.

Reporting occasions

Interim report, Jan -Sep 2019	October 28, 2019
Interim report Jan -Dec 2019	January 30, 2020

Signatures

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

Solna, July 19, 2019

Chairman of the Board Board member Board member

Tomas Billing Geir Magne Aarstad Viveca Ax:son Johnson

Board member Board member Board member

Alf Göransson Mats Jönsson Angela Langemar Olsson

Board member Board member

Ulla Litzén Birgit Nørgaard

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

Tomas Carlsson President and CEO

This report is unaudited.

Condensed consolidated income statement

							2018	Proforma excl
		2019	2018	2019	2018	Jul. 18-		IFRS 16 2019
SEK M	Note 1	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.	Jan.-Jun. 2)
Net sales		14,610	14,349	26,044	25,244	58,146	57,346	26,044
Production costs	Note 2, 3	-13,473	-13,196	-24,560	-23,749	-56,017	-55,205	-24,568
Gross profit		1,137	1,153	1,484	1,495	2,129	2,140	1,476
Selling and administrative expenses	Note 2, 3	-730	-712	-1,423	-1,415	-2,883	-2,875	-1,427
Other operating income/expenses	Note 3	4	1 2	-2	9	-39	-29	-2
Operating profit/loss		411	452	5 9	8 8	-793	-764	4 7
Financial income		5	8	2 3	3 2	2 6	3 6	2 3
Financial expense 1)		-37	-33	-72	-65	-128	-121	-52
Net financial items		-32	-25	-50	-34	-102	-85	-30
Profit/loss after financial items		380	427	9	5 5	-895	-849	1 8
Tax		-58	-86	-1	-10	108	9 9	-3
Net profit/ loss		322	341	8	4 5	-787	-750	1 4
Attributable to:
NCC´s shareholders		308	337	-4	4 3	-803	-756	3
Non-controlling interests		1 4	4	1 1	2	1 6	6	1 1
Net profit/loss for the period		322	341	8	4 5	-787	-750	1 4
Earnings per share
Before and after dilution
Net profit/loss for the period, SEK		2.85	3.12	-0.03	0.39	-7.43	-7.00	0.03
Number of shares, millions
Total number of issued shares		108.4	108.4	108.4	108.4	108.4	108.4	108.4
Average number of shares outstanding before and after dilution during the period		108.0	108.1	108.0	108.1	108.0	108.1	108.0
Number of shares outstanding at the end of the period		108.0	108.0	108.0	108.0	108.0	108.0	108.0

1) Whereof interest expenses for the period Jul.-18-Jun.-19, amounting to SEK 109 M and for the period Jan.- Dec. 2018 amounting to SEK 102 M.

Consolidated statement of comprehensive income

Consolidated statement of comprehensive income
	2019	2018	2019	2018	Jul. 18-	2018	Proforma excl IFRS 16 2019
SEK M Note 1	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.	Jan.-Jun. 2)
Net profit/loss for the period	322	341	8	4 5	-787	-750	1 4
Items that have been recycled or should be recycled to net profit/loss for the period
Exchange differences on translating foreign operations	3 1	4 1	7 5	137	2 8	9 0	7 5
Change in hedging/fair value reserve		-9		-36	5	-30
Cash flow hedges	-13	4 3	1 2	3 5	-54	-30	1 2
Income tax relating to items that have been or should be recycled to net profit/loss for the period	3	-8	-2		1 0	1 2	-2
	2 0	6 8	8 5	137	-11	4 1	8 5
Items that cannot be recycled to net profit/loss for the period
Revaluation of defined benefit pension plans	-38	6 2	-38	3 4	-889	-818	-38
Income tax relating to items that can not be recycled to net profit/loss for the period	8	-14	8	-8	191	175	8
	-30	4 9	-30	2 7	-699	-643	-30
Other comprehensive income	-9	117	5 5	164	-710	-602	5 5
Total comprehensive income	312	458	6 3	209	-1,497	-1,352	6 9
Attributable to:
NCC´s shareholders	298	454	5 2	207	-1,513	-1,358	5 8
Non-controlling interests	1 4	4	1 1	2	1 6	6	1 1
Total comprehensive income	312	458	6 3	209	-1,497	-1,352	6 9
2) The quarter show s how the income statement w ould have looked if NCC had still applied IAS 17 instead of IFRS 16.

Condensed consolidated balance sheet

					Proforma exkl
		2019	2018	2018	IFRS 16 2019
SEK M	Note 1	Jun. 30	Jun. 30	Dec. 31	Jun. 30 2)
ASSETS
Fixed assets
Goodwill		1,914	1,947	1,861	1,914
Other intangible assets		381	408	339	381
Right-of-use assets		1,762	457	493	517
Owner-occupied properties		902	878	915	902
Machinery and equipment		2,588	2,662	2,559	2,588
Long-term holdings of securities		124	120	119	124
Long-term interest-bearing receivables		199	713	195	199
Other long-term receivables		2 5	2 9	119	2 5
Deferred tax assets		781	288	531	779
Total fixed assets		8,676	7,501	7,133	7,428
Current assets
Right-of-use assets		5 1
Properties held for future development		1,287	1,927	1,633	1,287
Ongoing property projects		3,211	2,034	2,292	3,211
Completed property projects		578	727	308	578
Participations in associated companies		261		226	261
Materials and inventories		1,068	878	902	1,068
Tax receivables		284	735	146	284
Accounts receivable		9,672	10,271	9,629	9,672
Worked-up, non-invoiced revenues		1,926	2,961	1,276	1,926
Prepaid expenses and accrued income		1,633	1,786	1,418	1,710
Current interest-bearing receivables		270	204	163	270
Other receivables		524	534	608	524
Short-term investments 1)		1 0	1 0	7 2	1 0
Cash and cash equivalents		716	742	1,197	716
Assets held for sale		413			265
Total current assets		21,904	22,811	19,868	21,782
Total assets		30,579	30,312	27,001	29,210
EQUITY
Share capital		867	867	867	867
Other capital contributions		1,844	1,844	1,844	1,844
Reserves		1 3	2 4	-72	1 3
Profit/loss brought forward, including current-year profit/loss		-191	1,764	292	-183
Shareholders´ equity		2,533	4,499	2,931	2,541
Non-controlling interests		1 0	1 4	1 7	1 0
Total shareholders´ equity		2,543	4,513	2,948	2,551
LIABILITIES
Long-term liabilities
Long-term interest-bearing liabilities		2,191	1,529	1,342	1,352
Other long-term liabilities		4 0	2 5	8	4 0
Provisions for pensions and similar obligations		2,369	1,416	2,279	2,369
Deferred tax liabilities		490	623	297	490
Other provisions		2,442	1,832	2,563	2,442
Total long-term liabilities		7,533	5,424	6,488	6,694
Current liabilities
Current interest-bearing liabilities		2,846	1,810	1,051	2,450
Accounts payable		5,190	5,537	5,164	5,190
Tax liabilities			110
Invoiced revenues not worked-up		7,159	7,371	6,311	7,159
Accrued expenses and prepaid income		3,404	3,127	3,452	3,404
Provisions		4 5	2 3	6 8	4 5
Other current liabilities		1,526	2,397	1,520	1,526
Liabilities attributable to assets held for sale		334			192
Total current liabilities		20,503	20,375	17,566	19,966
Total liabilities		28,037	25,799	24,054	26,660
Total shareholders' equity and liabilities		30,579	30,312	27,001	29,210
1) Includes short-term investments w ith maturities exceeding three months, see also cash-flow		statement.
2) Show s how the balance sheet w ould have looked if NCC had still applied IAS 17 instead of IFRS 16.

Condensed changes in shareholders' equity, Group

		Jun. 30, 2019 Jun. 30, 2018
			Total			Total
	Shareholders´	Non-controlling	shareholders'	Shareholders	Non-controlling	shareholders'
SEK M	equity	interests	equity	' equity	interests	equity
Opening balance, January 1st	2,931	1 7	2,948	5,167	1 2	5,179
Total comprehensive income	5 2	1 1	6 3	207	2	209
Dividend	-432	-18	-450	-865		-865
Sale/Acqusition of treasury shares	-19		-19	-11		-11
Performance based incentive program	2		2	1		1
Closing balance	2,533	1 0	2,543	4,499	1 4	4,513
If the principles for accounting for pensions, IAS 19, applied before 1 January 2013, had been used, the equity w ould have been SEK 2,852 M higher and net debt SEK 2,369 M low er at June 30 2019.

Condensed consolidated cash flow statement

	2019	2018		2018	Jul. 18-	2018	Proforma excl
			2019				IFRS 16 2019
SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.	Jan.-Jun.
OPERATING ACTIVITIES
Profit / loss after financial items	380	427	9	5 5	-895	-849	1 9
Adjustments for items not included in cash flow	280	-126	532	-7	2 176	1 637	187
Taxes paid	-65	-118	-162	-259	4 4	-53	-162
Cash flow from operating activities before changes in working capital	595	183	379	-211	1 325	735	4 4
Divestment of property projects	114	6 9	543	259	1 721	1 436	543
Gross investments in property projects	-705	-603	-1 343	-1 149	-2 796	-2 602	-1 343
Other changes in working capital	-892	-1 080	-414	-914	555	5 5	-414
Cash flow from changes in working capital	-1 483	-1 614	-1 214	-1 803	-520	-1 110	-1 214
Cash flow from operating activities	-889	-1 430	-834	-2 014	804	-375	-1 169
INVESTING ACTIVITIES
Acquisition/Sale of subsidiaries and other holdings	1	-25	2	-11	7 5	6 2	2
Acquisition/Sale of tangible fixed assets	-209	-240	-397	-472	-726	-802	-397
Acquisition/Sale of other fixed assets	-13	-14	-20	-28	-34	-42	-20
Cash flow from investing activities	-221	-280	-415	-511	-686	-782	-415
Cash flow before financing	-1 109	-1 710	-1 249	-2 525	119	-1 157	-1 584
FINANCING ACTIVITIES
Cash flow from financing activities 1)	937	-261	741	163	-139	-717	1 076
Cash flow during the period	-172	-1 971	-508	-2 362	-20	-1 874	-508
Cash and cash equivalents at beginning of period	883	2 675	1 197	3 063	742	3 063	1 197
Effects of exchange rate changes on cash and cash equivalents	6	3 9	2 8	4 2	-6	8	2 8
Cash and cash equivalents at end of period	716	742	716	742	716	1 197	716
Short-term investments due later than three months	1 0	1 0	1 0	1 0	1 0	7 2	1 0
Total liquid assets at end of period	726	752	726	752	726	1 269	726
1) Of the total determined dividend SEK 432 M, SEK 216 M has been paid in April 2019 and SEK 216 M in November 2019. Cash flow before financing has been positively affected by the introduction of IFRS 16. The impact on the total cash flow 2) Show s how the cash flow w ould have looked if NCC had still applied IAS 17 instead of IFRS 16.			for the period is intangible.

Parent Company condensed income statement

	2019	2018	2019	2018	Jul. 18-	2018
SEK M Note 1	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.
Net sales	3 8	4 1	7 1	8 1	164	174
Selling and administrative expenses	-94	-81	-174	-158	-393	-376
Operating profit	-56	-40	-103	-76	-229	-202
Result from financial investment
Result from participations in Group companies	332	435	332	435	-311	-208
Result from other financial fixed assets			1 3	1 2	1 3	1 2
Result from financial current assets			2	1	2
Interest expense and similar items	-9	-5	-19	-10	-56	-47
Result after financial items	268	390	226	361	-581	-445
Appropriations					545	545
Tax	2 1	9	3 3	-5	-62	-101
Net profit/loss for the period	289	399	259	356	-98	-1

The Parent Company consists primarily of head office functions plus a branch in Norway. Net sales pertain to charges to Group companies. The average number of employees was 62 (52).

Total approved dividends to shareholders amounted to SEK 432 M, of which SEK 216 M was paid in April and SEK 216 M will be paid in November 2019.

Parent Company condensed balance sheet

		2019	2018	2018
SEK M	Note 1	Jun. 30	Jun. 30	Dec. 31
ASSETS
Fixed assets
Intangible fixed assets		3	3 8
Tangible fixed assets		5 3	1 2	2 4
Financial fixed assets		5,587	4,751	5,571
Total fixed assets		5,642	4,801	5,595
Current assets
Current receivables		292	407	875
Treasury balances in NCC Treasury AB		174	630	161
Total current assets		467	1,037	1,036
Total assets		6,109	5,838	6,631
SHAREHOLDERS´ EQUITY AND LIABILITIES
Shareholders´ equity		2,699	3,251	2,891
Provisions		8	9	8
Long term liabilities		2,046	2,046	2,045
Current liabilities		1,356	531	1,687
Total shareholders' equity and liabilities		6,109	5,838	6,631

Notes

Note 1. Accounting policies

Group

This interim report has been compiled pursuant to IAS 34 Interim Financial Reporting. The interim report has been prepared in accordance with International Financial Reporting Standards (IFRS) and the interpretations of prevailing accounting standards issued by the International Financial Reporting Interpretations Committee (IFRIC), as approved by the EU.

The interim report has been prepared pursuant to the same accounting policies and methods of calculation as the 2018 Annual Report (Note 1, pages 30-36), with the exception of IFRS 16 Leases, which has been applied as of January 1, 2019. The impact of the implementation of IFRS 16 Leases on the financial statements is described below under the heading IFRS 16 Leases.

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

The assets and liabilities attributable to the transfer of Road Services, which will take place in the third quarter of 2019, will be reported as separate line items as either an asset or a liability.

IFRS 16 Leases

IFRS 16 Leases is applied as of January 1, 2019. IFRS 16 Leases replaces the previous standard IAS 17 Leases. NCC has elected to implement the standard according to the modified retrospective approach, which entails that identified leases have not been restated retrospectively, meaning that they have had no impact on comparative figures for periods prior to 2019.

The application of IFRS 16 Leases entails that NCC recognizes right-of-use assets with the associated lease liability for vehicles, heavy production machinery, leased premises and site leaseholds/land leases. The balance sheet has been expanded to include lines for right-of-use assets recognized under tangible fixed assets and current assets. The associated lease liability is included in current and noncurrent interest-bearing liabilities. Right-of-use assets, except for land leases/site leaseholds, are depreciated over the term of the lease. The costs for these leases have been recognized in profit or loss as depreciation and interest expense, respectively. The lease payment is divided into an interest component and a depreciation component. The operating result has been impacted positively and net financial items have been impacted negatively. In conjunction with the implementation of IFRS 16 Leases, cash flow from operating activities has increased and cash flow from financing activities has decreased.

When discounting future lease payments for most of the vehicles and heavy machinery leased by the Group, NCC has used the interest rate implicit in each lease as the discount rate. For other types of lease payments recognized in accordance with IFRS 16 Leases, which mainly include leased premises and site leaseholds, the incremental borrowing rate of the individual lessee is used as the

discount rate. The incremental borrowing rate of the individual lessee is based on the lessee's financial strength, the country and the term of the lease in question.

The table below shows the impact, on both the asset and liability side, of the transition from the recognition of finance leases according to IAS 17 Leases to the recognition of right-of-use assets according to IFRS 16 Leases.

Right-of-use assets	SEK M
Initial vaue for financial leasing	493
Reversed residual value	-190
Additional right-of-use assets	1,684
Total additional right-of use assets	1,494
Right-of-use assets as of January 1, 2019	1,987
Financial commitment for right-of-use assets
Inital commitment for financial leasing	493
Additional commitment	1,494
Prepaid leasing fees	-80
Interest bearing liability as of January 1, 2019	1,907
- whereof short-term	610

- whereof long-term 1,297

Parent Company

The Parent Company has prepared its interim report pursuant to the Swedish Annual Accounts Act (1995:1554) and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.

The interim report for the Parent Company was been prepared in accordance with the same accounting policy and methods of calculation as the Annual Report for 2018 (Note 1, pages 30-36) except that the Parent Company applies the exemption in RFR 2 and recognizes all lease commitments as operating leases.

Note 2. Depreciation/amortization

	2019	2018	2019	2018	Jul. 18-	2018
SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.
Other intangible assets	-15	-15	-28	-30	-63	-65
Owner-occupied properties 1)	-81	-10	-156	-18	-178	-40
Machinery and equipment 2)	-254	-173	-499	-338	-842	-681
Total depreciation	-349	-198	-684	-386	-1,083	-785
1) Of w hich depreciation of right-of-use assets SEK 126 M (0). 2) Of w hich depreciation of right-of-use assets SEK 219 M (29).

Note 3. Impairment losses

	2019	2018	2019	2018	Jul. 18-	2018
SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 19	Jan.-Dec.
Properties held for future development					-130	-130
Completed property projects					-240	-240
Managed properties	-12		-13		-16	-3
Machinery and equipment	-1		-8		-10	-2
Goodwill within NCC Infrastructure					-36	-36
Other intangible assets					-41	-41
Total impairment expenses	-13	0	-21	0	-473	-453

Note 4. Right-of-use assets

SEK M	2019	2018	2018
Koncernen	Jun. 30	Jun. 30	Dec. 31
Owner-occupied properties	775
Machinery and equipment	1,136	457	493
Land leases	5 0
Total right-of-use assets	1,961	457	493

Note 5. Segment reporting

SEK M

SEK M
					NCC
	NCC Building	NCC Building	NCC	NCC	Property	Total	Other and
April - June 2019	Sw eden	Nordics	Infrastructure	Industry	Development	segments	eliminations 1)	Group
Net sales, external	3,514	2,598	4,951	3,236	309	14,607	3	14,610
Net sales, internal	212	205	-124	484	11	789	-789
Net sales, total	3,726	2,803	4,827	3,721	321	15,396	-786	14,610
Operating profit	76	46	88	322	40	571	-160	411
Net financial items								-32
Profit/loss after financial items								380

					NCC
	NCC Building	NCC Building	NCC	NCC	Property	Total	Other and
April - June 2018	Sw eden	Nordics	Infrastructure	Industry	Development	segments	eliminations 1)	Group
Net sales, external	3,846	2,330	4,894	3,176	103	14,349		14,349
Net sales, internal	210	241	97	449	12	1,010	-1,010
Net sales, total	4,057	2,571	4,990	3,625	115	15,358	-1,010	14,349
Operating profit	147	34	51	324	-16	540	-87	452
Net financial items								-25
Profit/loss after financial items								427

SEK M
					NCC
	NCC Building	NCC Building	NCC	NCC	Property	Total	Other and
January -June 2019	Sw eden	Nordics	Infrastructure	Industry	Development	segments	eliminations 2)	Group
Net sales, external	6,939	5,005	9,184	4,204	709	26,041	3	26,044
Net sales, internal	455	365	-46	782	23	1,579	-1,579
Net sales, total	7,394	5,370	9,138	4,985	732	27,620	-1,576	26,044
Operating profit	185	80	90	-63	21	313	-254	59
Net financial items								-50
Profit/loss after financial items								9

					NCC
	NCC Building	NCC Building	NCC	NCC	Property	Total	Other and
January -June 2019	Sw eden	Nordics	Infrastructure	Industry	Development	segments	eliminations 2)	Group
Net sales, external	7,272	4,457	9,071	4,067	375	25,242	2	25,244
Net sales, internal	434	414	213	724	25	1,809	-1,809
Net sales, total	7,706	4,870	9,284	4,791	400	27,051	-1,807	25,244
Operating profit	258	45	40	-87	0	255	-167	88
Net financial items								-34
Profit/loss after financial items								55

1 ) The figures for the quarter include among others NCC's head office and results from small subsidiaries and associated companies, totalling SEK -94 M (-50). Further, the figures for the quarter includes eliminations of internal profits of SEK -44 M (-27) and other Group adjustments, mainly consisting of differences of accounting policy between the segments and the Group (including pensions and leasing) amounting SEK -22 M (-10).

2 ) The figures for the period include among others NCC's head office and results from small subsidiaries and associated companies, totalling SEK -140 M (-107). Further, the figures includes eliminations of internal profits amounting of SEK -55 M (-29) and other Group adjustments, mainly consisting of differences of accounting policy between the segments and the Group (including pensions and leasing) amounting SEK -59 M (-31).

Geographical areas

	Net sales		Orders received
	2019	2018	2019	2018
SEK M	Jan.-Jun.	Jan.-Jun.	Jan.-Jun.	Jan.-Jun.
Sweden	16,010	16,183	15,627	20,619
Denmark	3,190	3,447	8,329	3,275
Finland	3,232	2,531	3,860	4,430
Norway	3,613	3,083	3,756	3,030
Total	26,044	25,244	31,572	31,355

Note 6. 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 to 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.

redovisas till verkligt värde i NCC:s balansräkning. SEK M	Level Jun. 30, 2019 Level Level				Level Jun. 30, 2018 Level Level				Level Dec. 31, 2018 Level Level
	1	2	3	Total	1	2	3	Total	1	2	3	Total
Financial assets measured at fair value through profit MSEK			31 dec 2018				31 dec 2017
and loss
Short-term investments	1 0	Redovisat		1 0	Verkligt 1 0		Redovisat	1 0	Verkligt 7 2			7 2
Derivative instruments		värde 2 1		2 1	värde	1	värde	1	värde	127		127
Långfristiga räntebärande fordringar som hålles till förfall Derivative instruments used in hedge accounting		3 1		3 1		9 6	131	9 6	131	3 4		3 4
Långfristiga räntebärande fordringar - upplupet anskaffningsvärde* Financial assets measured at fair value through other			195		196
Kortfristiga placeringar som hålles till förfall comprehensive income							3 0		3 0
Långfristiga räntebärande skulder Equity instruments			1 342 7 4	7 4	1 343		1 669 8 2	8 2	1 676		7 7	7 7
Kortfristiga räntebärande skulder Total assets	1 0	5 2	1 051 7 4	136	1 051 1 0	9 7	919 8 2	189	925 7 2	161	7 7	310
Financial liabilities measured at fair value through profit * Per 31 dec 2018 ingår även övriga långfristiga räntebärande fordringar som tidigare var klassificerade som "kund- och lånefordringar".
and loss
Derivative instruments För övriga finansiella instrument som redovisas till upplupet anskaffningsvärde; kundfordringar,		1 0		1 0		133		133		4		4
Derivative instruments used in hedge accounting kortfristiga räntebärande fordringar, övriga fordringar, likvida medel, leverantörsskulder och andra		3 4		3 4		7 4		7 4		5 1		5 1
räntefria skulder, bedöms det verkliga värdet inte väsentligt avvika från det redovisade värdet. Total liabilities	0	4 4	0	4 4	0	207	0	207	0	5 5	0	5 5

In the tables 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	Jun. 30, 2019		Jun. 30, 2018		Dec. 31, 2018
	Carrying	Fair	Carrying	Fair	Carrying	Fair
	amount	value	amount	value	amount	value
Long-term interest-bearing receivables - amortized cost	199	201	713	714	195	196
Long-term interest-bearing liabilities	2,191	2,192	1,529	1,532	1,342	1,343
Current interest-bearing liabilities	2,846	2,846	1,810	1,814	1,051	1,051
Interest bearing liabilities attributable to assets held for sale	142

For other financial instruments recognized at amortized cost – accounts receivables, 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. The effect of IFRS 16 leases on short and long-term interest-bearing liabilities is SEK 577 M and SEK 1,175 M, respectively, and SEK 142 M on interest-bearing liabilities attributable to assets held for sale.

Note 7. Pledged assets, contingent liabilities and guarantee obligations

SEK M	2019	2018	2018
Group	Jun. 30	Jun. 30	Dec. 31
Assets pledged	1,903	467	503
Contingent liabilities and guarantee obligations 1)	576	602	602
Parent company
Contingent liabilities and guarantee obligations 1)	21,574	18,999	19,678
1) Among these, NCC AB has sureties w hich are indemnified by Bonava AB based on the Master Separation Agreement. Bonava is w orking on formally replacing these sureties w ith other forms of collateral in a gradual process, w	hich means that this item w	ill decline

w orking on formally replacing these sureties w ith other forms of collateral in a gradual process, w hich means that this item w ill decline further over time. In addition, NCC AB has received guarantees from credit insurance companies for the remaining outstanding commitments on behalf of now w holly ow ned Bonava companies.

Summary of key figures

	2019 6)		20183) Jul 18- 6)	2018	20173)	2017	2016	2015	2014
		Apr.-Jun. Apr.-Jun.		Jun 19 Jan.-Dec. Jan.-Dec. Jan.-Dec. Jan.-Dec. Jan.-Dec. Jan.-Dec.
Profitability ratios
Return on shareholders equity, % excl profit from dividend of Bonava 1)	-25	7	-25	-18	1 7	1 8	1 9	2 6	2 2
Return on shareholders equity, % incl profit from dividend of Bonava 1) 5)	-25	7	-25	-18	1 7	1 8	118	2 6	2 2
Return on capital employed, % excl profit from dividend of Bonava 1)	-9	5	-9	-9	1 2	1 3	1 3	1 7	1 4
Return on capital employed, % incl profit from dividend of Bonava 1) 5)	-9	5	-9	-9	1 2	1 3	6 3	1 7	1 4
Financial ratios at period-end
EBITDA % excl profit from dividend of Bonava	5.3	4.5	1.3	0.8	3.3	3.6	4.7	6.2	5.8
EBITDA % incl profit from dividend of Bonava 5)	5.3	4.5	1.3	0.8	3.3	3.6	17.0	6.2	5.8
Interest-coverage ratio, times excl profit from dividend of Bonava 1)	-6.0	3.6	-6.0	-6.0	8.5	9.8	6.6	7.1	6.4
Interest-coverage ratio, times incl profit from dividend of Bonava1) 5)	-6.0	3.6	-6.0	-6.0	8.5	9.8	31.1	7.1	6.4
Equity / asset ratio, %	8	1 5	8	1 1	1 9	2 0	2 2	2 5	2 3
Interest bearing liabilities/total assets, %	2 5	1 6	2 5	1 7	1 5	1 5	1 6	2 4	2 6
Net cash +/ net debt -, SEK M	-6,352	-3,084	-6,352	-3,045	-149	-149	-222	-4,552	-6,836
Debt / equity ratio, times	2.5	0.7	2.5	1.0	0.0	0.0	0.0	0.5	0.8
Capital employed at period end, SEK M	10,091	9,268	10,091	7,619	9,174	9,523	9,585	19,093	18,935
Capital employed, average	8,814	9,187	8,814	8,780	9,138	9,418	13,474	18,672	18,531
Capital turnover rate, times 1)	6.6	5.9	6.6	6.5	6.0	5.8	4.1	3.3	3.1
Share of risk-bearing capital, %	1 0	1 7	1 0	1 2	2 1	2 2	2 4	2 5	2 3
Closing interest rate, % 7)	0.9	1.5	0.9	1.3	2.0	2.0	2.6	2.8	2.8
Average period of fixed interest, years	0.5	0.3	0.5	0.5	0.6	0.6	0.9	0.9	1.1
Per share data
Profit/loss after tax, before and after dilution, SEK excl profit from dividend Bonava	2.85	3.12	-7.43	-7.00	8.07	9.29	11.61	19.59	17.01
Profit/loss after tax, before and after dilution, SEK incl profit from dividend Bonava 5)	2.85	3.12	-7.43	-7.00	8.07	9.29	73.81	19.59	17.01
Cash flow from operating activities, before and after dilution, SEK	-8.22	-13.24	7.44	-3.47	19.97	19.97	10.88	37.65	12.47
Cash flow before financing, before and after dilution, SEK	-10.27	-15.83	1.10	-10.71	12.59	12.59	-0.05	30.88	5.32
P / E ratio excl profit from dividend Bonava 1)	-22	5 1	-22	-20	1 9	1 7	1 9	1 3	1 5
P / E ratio incl profit from dividend Bonava 1) 5)	-22	5 1	-22	-20	1 9	1 7	3	1 3	1 5
Dividend, ordinary, SEK			4.00	4.00	8.00	8.00	8.00	3.00	12.00
Dividend yield, %				2.9	5.1	5.1	3.5	1.1	4.9
Shareholders' equity before dilution, SEK	23.45	41.64	23.45	27.13	47.81	51.04	51.39	89.85	82.04
Shareholders' equity after dilution, SEK	23.45	41.64	23.45	27.13	47.81	51.04	51.39	89.85	82.04
Share price / shareholders' equity, %	686	358	686	508	329	308	439	293	301
Share price at period-end, NCC B, SEK	160.95	148.95	160.95	137.80	157.30	157.30	225.40	263.00	246.80
Number of shares, millions
Total number of issued shares 2)	108.4	108.4	108.4	108.4	108.4	108.4	108.4	108.4	108.4
Treasury shares at period-end	0.4	0.4	0.4	0.4	0.4	0.4	0.4	0.6	0.6
Total number of shares outstanding at period-end before dilution	108.0	108.0	108.0	108.0	108.1	108.1	108.1	107.9	107.8
Average number of shares outstanding before dilution during the period	108.0	108.1	108	108.1	108.1	108.1	108.1	107.9	107.8
Market capitalization before dilution, SEK M 4)	17,382	16,086	17,382	14,896	16,997	16,997	24,325	28,369	26,574
Personnel
Average number of employees	15,309	16,610	15,309	16,290	17,762	17,762	16,793	17,872	17,669
1) Calculations are based on the rolling 12 month period. 2) All shares issued by NCC are common shares. 3) The amounts are adjusted for change in accounting policy regarding IFRS 15. 4) M arket value December 2016 excludes NCC´s residential business, Bonava. Including Bonava the maket value amounts to SEK 39,563 M 5) The profit arising from the dividend of Bonava was SEK -31 M and SEK 6,724 M in the full year 2017 and 2016.

5) The profit arising from the dividend of Bonava was SEK -31 M and SEK 6,724 M in the full year 2017 and 2016.

6) IFRS 16 has not had any material effect on key ratios regarding return on employment and equity.

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

For definitions of key figures, see www.ncc.group/investor-relations/financial-data/financial-definitions.

Contact information

Chief Financial Officer Susanne Lithander Tel. +46 (0)73-037 08 74

Head of Communications and Investor Relations Maria Grimberg Tel. +46 (0)708-96 12 88

Information meeting

NCC's President and CEO Tomas Carlsson and Chief Financial Officer Susanne Lithander will present the interim report at a teleconference on July 19 at 9:00 a.m. (CET). The presentation will be held in English.

The presentation can be followed via audiocast or by phone. Presentation material for the teleconference will be available at www.ncc.se/ir from 8:30 a.m. (CET).

Link to audiocast:	https://ncc-live-external.creo.se/190719
To participate by phone:	To participate by phone, please call one of the following numbers five minutes prior to the start of the conference.
	Sweden: +46 8 505 583 56
	UK: +44 3333 009 265
	US: +1 833 526 8383

This is the type of information that NCC is obligated to disclose pursuant to the EU Market Abuse Regulation. The information was issued for publication through the agency of the contact persons set out above, on July 19, 2019, at 7:10 a.m. CET.

info@ncc.se