NCC Group

Quarterly Report • Oct 30, 2007

INTERIM REPORT, JANUARY 1 – SEPTEMBER 30, 2007

• Net sales increased to SEK 41,102 M (37,948)
• Profit after financial items amounted to SEK 2,001 M (1,529)
• Profit after taxes for the period amounted to SEK 1,709 M (1,120)
• Earnings per share after dilution amounted to SEK 15.73 (10.31)

	2007	2006	2007	2006	Oct. 06-	2006
SEK M	Jul.-Sep.	Jul.-Sep.	Jan.-Sep.	Jan.-Sep.	Sep. 07	Jan.-Dec.
Orders received	16,782	12,455	47,097	40,602	63,708	57,213
Net sales	14,177	14,483	41,102	37,948	59,030	55,876
Operating profit/loss	866	906	2,128	1,615	2,905	2,392
Profit/loss after financial items	814	901	2,001	1,529	2,734	2,263
Net profit/loss for the period	747	674	1,709	1,120	2,297	1,708
Profi/loss per share after dilution, SEK	6.86	6.18	15.73	10.31	21.17	15.74
Cashflow before financing	815	446	-264	-238	1,631	1,657
Return on shareholders´ equity after tax, %			35	23	35	27
Debt/equity ratio, times	0.3	0.4	0.3	0.4	0.3	0.1
Net indebtedness	2,120	2,358	2,120	2,358	2,120	430

Comments by CEO Olle Ehrlén:

"NCC's performance was favorable during the first nine months of the year. Profit after financial items increased to SEK 2.0 billion (1.5), due primarily to continued healthy demand for housing in most of our markets and sales of property projects at early stages.

"Profit after net financial income/expense for the third quarter totaled SEK 814 M (901). The decline in profit was due primarily to increased development costs in the industrial housing construction operation and to weakening net financial items.

"Orders received rose 35 percent during the third quarter, with NCC Construction Sweden and NCC Construction Finland accounting for most of the increase. A number of major projects that will extend over a long period were secured during the quarter.

"Growth in the Nordic construction market is expected to comfortably exceed 3 percent in 2007. Prospects for 2008 appear favorable in the markets in which NCC is active, despite expectations that growth will be lower than in 2007. However, uncertainty has increased somewhat concerning the trend in the housing market."

NCC AB

Market development

The Nordic construction market was characterized by strong demand during the first nine months of 2007 and NCC's assessment is that growth will comfortably exceed 3 percent for full-year 2007.

The housing market is expected to remain favorable in most of the Nordic region during the remainder of the year, with the primary exception of Denmark, where demand remained weak during the third quarter. This autumn, more time has been required to sell newly produced housing in Finland and to some extent in Latvia.

The civil engineering market is expected to remain strong in the Nordic region during the remainder of 2007. The economic boom is also boosting activity in the aggregates and asphalt markets.

The trend in the leasing market for commercial properties was healthy during the third quarter and demand has been strong for NCC's newly produced properties. Market conditions continue to appear favorable.

The strong demand has resulted in a shortage of resources, in the form of materials, subcontractors and skilled personnel, which is leading to increased costs.

Prospects for 2008 appear favorable in the markets in which NCC is active, despite expectations that growth will be lower than in 2007. However, uncertainty has increased somewhat concerning the trend in the housing market compared with the market assessment published in connection with its six-month report on August 23, 2007.

Orders received and order backlog

Most recent quarter, July-September 2007

Orders received by the Group rose 35 percent compared with the year-earlier period to SEK 16,782 M (12,455). The increase was attributable to NCC Construction Sweden and NCC Construction Finland. Orders received by NCC Construction Sweden increased as a result of continued healthy demand in almost all parts of the country and within all business segments. Orders received included a number of major projects that will extend over a long period.

The increase for NCC Construction Finland derived from an increase in orders received in connection for contracts for retail projects.

Orders received for proprietary housing projects totaled SEK 3,016 M (2,518), of which about half were accounted for by Swedish operations. Proprietary property development projects totaled SEK 435 M (97). Property development projects have been initiated in Finland and Norway.

The order backlog on September 30 was SEK 46 billion (36), of which proprietary projects accounted for SEK 11 billion (9). The order backlog on September 30 was SEK 43 billion.

During the quarter, construction started on 1,089 (1,197) proprietary housing units and 760 (661) units were sold. The decline in the number of housing starts compared with the year-earlier period was due primarily to fewer housing starts in Denmark as the result of a continued weak housing market. The increase in sales of housing units was attributable to Germany, Finland and Sweden. The number of unsold completed housing units totaled 328 (205). On June 30, the number of unsold completed housing units was 278. At the end of the period, Finland, the Baltic region and Denmark accounted for the greatest number of unsold housing units.

Total project costs incurred in all projects initiated by NCC Property Development amounted to SEK 0.4 billion (1.1), representing 32 percent (55) of the total project costs of SEK 1.2 billion (2.0). The leasing rate on September 30 was 47 percent (34). On June 30, the leasing rate for projects was 59 percent.

Interim report period, January-September 2007

Orders received rose 16 percent to SEK 47,097 M (40,602). The increase was primarily accounted for by NCC Construction Sweden, which noted healthy demand in almost all areas of the country and within all business segments. Orders received also increased for NCC Construction Finland, especially within nonresidential building construction.

Orders received by the Group for proprietary housing projects totaled SEK 8,347 M (7,740), while proprietary property projects amounted to SEK 1,313 M (807). During the first nine months of 2007, construction started on 3,114 (3,201) proprietary housing units and 2,574 (2,839) units were sold. Sales were lower than in the year-earlier period due to a continued weak Danish housing market resulting in sluggish sales.

During the first three quarters of the year, the order backlog rose by SEK 9 billion, or 26 percent, compared with December 31, 2006.

Net sales and earnings per business segment

			Net sales						Operating profit
	2007	2006	2007	2006	Oct. 06-	2006	2007	2006	2007	2006	Oct. 06-	2006
SEK M	Jul.-Sep.	Jul.-Sep.	Jan.-Sep.	Jan.-Sep.	Sep. 07	Jan.-Dec.	Jul.-Sep.		Jul.-Sep. Jan.-Sep. Jan.-Sep.			Sep. 07 Jan.-Dec.
NCC Construction Sweden 1)	5 610	5 005	16 732	14 912	23 918	22 098	330	300	938	810	1 364	1 235
NCC Construction Denmark	1 287	1 396	4 175	4 704	5 964	6 493	-17	-59	19	-36	20	-35
NCC Construction Finland	1 742	1 642	5 195	4 603	7 042	6 450	99	108	338	285	443	390
NCC Construction Norway	1 528	1 462	4 422	4 455	5 969	6 002	55	53	60	153	85	179
NCC Construction Germany	655	330	1 546	1 123	2 186	1 763	23	14	52	45	92	85
NCC Property Development	658	1 326	3 441	1 566	5 647	3 773	102	171	502	182	792	472
NCC Roads excl. Roads Poland	3 171	2 893	6 597	5 841	9 274	8 518	411	377	298	344	294	340
Roads Poland		558	125	947	705	1 526		52	335	28	382	75
NCC Roads	3 171	3 451	6 722	6 788	9 978	10 044	411	429	633	372	676	415
Total	14 651	14 612	42 233	38 152	60 705	56 624	1 003	1 017	2 542	1 810	3 473	2 742
Other items and eliminations 2)	-474	-129	-1 131	-205	-1 674	-748	-138	-111	-414	-196	-568	-350
Group	14 177	14 483	41 102	37 948	59 030	55 876	866	906	2 128	1 615	2 905	2 392

1) Excluding NCC Complete

2) Including NCC Complete

Net sales

Most recent quarter, July-September 2007

Net sales declined by 2 percent to SEK 14,177 M (14,483), primarily due to lower sales within NCC Property Development. NCC Roads reported lower net sales because the 2006 figures included results from the Polish asphalt and aggregates operations divested during 2007.

Interim report period, January-September 2007

Net sales rose 8 percent to SEK 41,102 M (37,948). The increase was mainly attributable to higher sales by NCC Property Development compared with the year-earlier period and high activity in NCC Construction Sweden, Finland and Germany. Net sales within NCC Construction Denmark declined, mainly due to diminishing sales of housing. The higher activity in the construction market led to increased demand for and sales of asphalt, aggregates and paving within NCC Roads.

Earnings

Most recent quarter, July-September 2007

Operating profit amounted to SEK 866 M (906). The earnings in the year-earlier period included SEK 52 M from the Polish asphalt and aggregates operations that were sold in 2007.

The decline in earnings was due primarily to increased development costs for industrial housing development, NCC Complete. As of the third quarter, NCC Complete, which was previously accounted for in both NCC Construction Sweden and centrally in the "other and eliminations" item, has been accounted for separately in the "other and eliminations" item. Figures for prior periods have been restated in accordance with this principle. A review of this development project is under way and actions have been taken to reduce the impact on earnings.

Earnings for NCC Construction Sweden increased to SEK 330 M (300). The earnings increase was attributable to continued healthy demand for housing and to favorable development within construction contract operations.

The earnings reported by NCC Construction Denmark remained unsatisfactory, albeit stronger than in the year-earlier period when earnings were charged with impairment losses and provisions for legal disputes totaling SEK 85 M. The loss reported for the quarter was due primarily to continued weak demand for housing. Within construction contract operations, profitability increased.

The earnings reported by NCC Construction Norway were positively impacted by capital gains of SEK 35 M from the sale of a minor subsidiary.

The earnings reported by NCC Roads, after taking into account the sale of the Polish asphalt and aggregates operations, were better than in the year-earlier period. The improvement in earnings was primarily attributable to a favorable trend for aggregates operations. In the third quarter of the preceding year, impairment losses of SEK 17 M were reported for goodwill pertaining to Finnish operations.

Profit after financial items amounted to SEK 814 M (901). Net financial items deteriorated compared with the year-earlier period. Net financial items for the year-earlier period were positively impacted by a number of nonrecurring items, including the premature redemption of loans amounting to SEK 24 M. Net financial items for the period were also affected by generally higher interest-rates.

Profit after taxes amounted to SEK 747 M (674) for the period.

Interim report period, January-September 2007

Operating profit totaled SEK 2,128 M (1,615). Earnings for 2007 to date include SEK 383 M from the second-quarter sale of NCC Roads' Polish asphalt and aggregates operations, while earnings for 2006 included earnings of SEK 28 M from these operations; see also Note 2, "Divested operations."

The improvement relative to the year-earlier period was primarily attributable to improved earnings on the part of NCC Property Development, which reported strong earnings during the second quarter due to sales of projects at early stages. Earnings also improved for NCC Construction Sweden (excluding NCC Complete) and NCC Construction Finland. An impairment loss of SEK 90 M (17) was incurred for goodwill associated with NCC Roads' Finnish operations.

NCC Construction Denmark developed favorably during the period, although its profitability remained low due to a weak housing market. The year-earlier period included impairment losses and provisions for legal disputes of SEK 250 M, which were partly offset by a major land sale. Earnings for NCC Construction Norway were lower than in the year-earlier period, largely due to project-related impairment losses incurred during the first quarter.

The "other and eliminations" item includes the development costs for industrial housing development, NCC Complete, and a provision for the competition-impeding fine of SEK 150 M imposed by the Stockholm City Court. Earnings for 2006 were favorably affected by payments of SEK 43 M received in connection with receivables for which impairment losses had already been incurred and by cost reductions of SEK 45 M in AMF pension premiums, and were negatively affected by intra-Group profits.

Profit after financial items amounted to SEK 2,001 M (1,529). This item includes SEK 400 M from the sale of NCC Roads' Polish asphalt and aggregates operations; see Note 2, "Divested operations."

Profit after taxes amounted to SEK 1,709 M (1,120) for the period. The tax rate for the period was approximately 15 percent (27). Tax amounts were affected by reduced tax rates in Denmark and Germany, by the fact that the competition-impeding fine was not tax-deductible and by the fact that property transactions completed by NCC Property Development were not subject to tax. The sale of NCC Roads' Polish asphalt and aggregates operations was not taxed either.

Seasonal effects

NCC Roads' operations and certain operations in NCC Construction units are affected by seasonal variations as a result of cold weather conditions. Accordingly, the first and final quarters are generally weaker than the rest of the year.

Cash flow

Most recent quarter, July-September 2007

Cash flow before financing amounted to SEK 815 M (446). For additional information, see the cash flow statement, page 9. Cash flow for the quarter was positively affected by lower receivables in connection with sales of property projects, compared with the year-earlier period. Cash flow from other changes in working capital within NCC Property Development and NCC Roads deteriorated compared with the yearearlier period.

Net indebtedness (interest-bearing liabilities less cash and cash equivalents less interest-bearing receivables) amounted to SEK 2,120 M (2,358) on September 30; also see Note 7, "Specification of net indebtedness." Net indebtedness amounted to SEK 430 M on December 31, 2006.

Interim report period, January-September 2007

Cash flow before financing was a negative SEK 264 M (negative: 238). Cash flow was positively affected by the sale of NCC Roads' Polish asphalt and aggregates operations, for which receipts amounted to SEK 1.1 billion, of which SEK 0.4 billion pertained to loans in connection with the divested operations reported under "Investment activities." See also Note 2, "Divested operations." Cash flow for the yearearlier period included proceeds of SEK 0.5 billion from the sale-and-leaseback agreement relating to properties in the Sonnengarten district in Berlin. For additional information, see also the cash flow statement, page 9.

Significant risks and uncertainties

In the 2006 Annual Report (pages 44-47), an account is made of the risks to which NCC is exposed. The description of risks reported there remains relevant and no additional risks or uncertainties have been identified for the forthcoming three-month period.

Ongoing cartel processes

On July 10, Stockholm City Court announced its verdict on the Swedish asphalt cartel case and ordered NCC to pay competition-impeding damages of SEK 150 million. This verdict has not gained legal effect and NCC has appealed it to the Market Court. NCC believes that the City Court did not take into account NCC's arguments that the actions taken by NCC had facilitated the Swedish Competition Authority's investigations in a decisive manner. NCC also believes that the amount was unreasonably high in view of the City Court's confirmation that there was no underlying general agreement to divide up all central and local government paving procurements, and that it was instead a local phenomenon that occurred over just a few years.

Since the preceding interim report, no new information has arisen regarding the cartel matters in Norway and Finland or the cases involving individual municipalities in Sweden that have sued construction companies. For further information on the cartel processes, read NCC's Annual Report for 2006, Note 46, page 92.

Purchase and sale of shares

No shares were repurchased during the January-September 2007 interim period. During the period, 330,251 (799,817) treasury shares were sold. During 2006, 843,005 shares were sold. As a result, the number of shares outstanding increased to 108,414,684, which has affected the calculation of earnings per share. Following the sales, the number of treasury shares totaled 21,138 Series B shares. The treasury shares have been sold to cover commitments for earlier option programs.

Other significant events

Peter Gjörup was appointed president of NCC Construction Norway on September 27. He succeeds Sven Christian Ulvatne who chose to leave NCC. Peter Gjörup took over the position on October 1, 2007, reports to CEO Olle Ehrlén and is a member of NCC's Group management.

2008 Annual General meeting

NCC's 2008 Annual General Meeting will be held on April 8 in Stockholm.

Nomination Commitee

At the Annual General Meeting held on April 11, 2007, Viveca Ax:son Johnson (member of the Board of Nordstjernan), Ulf Lundahl (Deputy CEO of L E Lundbergföretagen) and Mats Lagerqvist (President of Robur AB) were elected to the Nomination Committee, with Viveca Ax:son Johnson as Chairman. Chairman of the Board Tomas Billing has been co-opted to the Nomination Committee, although without being entitled to vote.

Significant events after the close of the interim period

In October, NCC Construction Sweden secured an order from shopping-center developer Steen & Ström to modernize Sollentuna Centrum. The order is worth approximately SEK 1.1 billion and will be implemented on a partnering basis. The project will be included in order bookings for the fourth quarter.

Parent Company

Most recent quarter, July-September 2007

Parent Company sales totaled SEK 6,142 M (4,132). A loss of SEK 152 M (profit: 37) was reported after financial items. For the Parent Company, profits are recognized when projects are subject to final profit recognition.

Interim report period, January-September 2007

The Parent Company's invoiced sales totaled SEK 16,997 M (12,804). Profit after financial items amounted to SEK 1,505 M (635). The average number of employees was 7,541 (7,371).

Related-party transactions

The companies closely related to the NCC Group are the Nordstjernan Group, companies in the Lundberg Group, Axel Johnson Group, NCC subsidiaries and associated companies and joint ventures. NCC's related-party transactions were of a production character. Related-company sales amounted to SEK 41 M (33) and purchases to SEK 150 M (186) for the July-September period. Related-company sales amounted to SEK 100 M (69) and purchases to SEK 497 M (460) for the January-September 2007 interim report period. The transactions were conducted on normal market terms.

Significant risks and uncertainties

The Parent Company's significant risks and uncertainties are identical to those of the Group, which were described above.

Otherwise, reference is made to the following income statements and balance sheets, including the associated notes.

Consolidated income statement

Group		2007	2006	2007	2006	Oct. 06-	2006
SEK M	Note 1,2	Jul.-Sep.	Jul.-Sep.	Jan.-Sep.	Jan.-Sep.	Sep. 07	Jan.-Dec.
Net sales	Note 3	14,177	14,483	41,102	37,948	59,030	55,876
Production costs	Note 4,5	-12,724	-12,972	-37,008	-34,371	-53,366	-50,729
Gross profit		1,453	1,511	4,094	3,577	5,664	5,147
Sales and administration costs		-638	-614	-2,174	-1,986	-2,983	-2,795
Result from property management					-3	-2	-5
Result from sales of managed properties					3	5	9
Result from sales of owner-occupied properties		8	4	19	12	29	22
Impairment losses, fixed assets 1)	Note 6		-17	-90	-17	-95	-22
Result from sales of Group companies		36		418	5	421	7
Competition-impeding damages				-150		-150
Result from participations in associated companies		7	23	10	23	16	29
Operating profit/loss		866	906	2,128	1,615	2,905	2,392
Financial income		42	34	98	81	132	116
Financial expense 1)		-94	-39	-225	-167	-303	-245
Net financial items		-52	-5	-127	-85	-171	-129
Profit/loss after financial items		814	901	2,001	1,529	2,734	2,263
Tax on net profit/loss for the period		-67	-227	-292	-410	-437	-555
Net profit/loss for the period		747	674	1,709	1,120	2,297	1,708
Attributable to:
NCC´s shareholders		744	670	1,705	1,117	2,295	1,706
Minority interests		3	4	4	2	3	1
Net profit/loss for the period		747	674	1,709	1,120	2,297	1,708
Earnings per share
Before dilution
Net profit/loss for the period, SEK		6.86	6.20	15.75	10.36	21.19	15.80
After dilution
Net profit/loss for the period, SEK		6.86	6.18	15.73	10.31	21.17	15.74
Number of shares, millions
Total number of issued shares		108.4	108.4	108.4	108.4	108.4	108.4
Average number of treasury shares during the period				0.2	0.5	0.3	0.5
Average number of shares outstanding before
dilution during the period		108.4	108.0	108.3	107.9	108.3	108.0
Average number of shares after dilution		108.4	108.4	108.4	108.4	108.4	108.4
Number of shares outstanding before dilution at the end of the period		108.4	108.0	108.4	108.0	108.4	108.1
Number of treasury shares at the end of the period			0.4		0.4		0.3

1) Impairment losses concerning financial fixed assets is included in Financial expenses.

Consolidated balance sheet

Group		2007	2006	2006
SEK M	Note 1,2	Sep. 30	Sep. 30	Dec. 31
ASSETS
Fixed assets
Goodwill		1,631	1,732	1,700
Other intangible assets		110	101	113
Managed properties		21	63	65
Owner-occupied properties		701	837	796
Machinery and equipment		1,767	1,892	1,940
Participations in associated companies		22	45	47
Other long-term holdnings of securities		240	254	242
Long-term receivables		2,771	1,976	2,477
Deferred tax assets		250	286	262
Total fixed assets		7,514	7,185	7,642
Current assets
Property projects		1,701	2,343	1,955
Housing projects		6,041	4,398	4,905
Materials and inventories		1,946	1,219	1,517
Tax receivables		207	111	51
Accounts receivable		8,514	7,780	7,934
Worked-up, non-invoiced revenues		3,770	3,741	2,840
Prepaid expenses and accrued income		983	901	852
Other receivables		1,671	1,370	1,481
Short-term investments 1)		174	264	173
Cash and cash equivalents		1,278	1,313	1,253
Total current assets		26,284	23,440	22,961
TOTAL ASSETS		33,798	30,625	30,603
EQUITY
Share capital		867	867	867
Other capital contributions		1,844	1,844	1,844
Reserves		31	16	-20
Profit brought forward, including current-year profit		3,881	3,511	4,105
Shareholders´ equity		6,622	6,238	6,796
Minority interests		30	90	75
Total shareholders´ equity		6,652	6,329	6,870
LIABILITIES
Long-term liabilities
Long-term interest-bearing liabilities		2,024	1,979	2,023
Other long-term liabilities		768	453	561
Deferred tax liabilities		565	493	461
Provisions for pensions and similiar obligations		117	126	119
Other provisions		2,645	1,749	2,157
Total long-term liabilities		6,118	4,802	5,321
Current liabilities
Current interest-bearing liabilities		2,015	2,550	552
Accounts payable		4,680	4,919	4,874
Tax liabilities		76	50	170
Project invoicing not yet worked-up		6,085	5,205	4,823
Accrued expenses and prepaid income		4,887	3,651	4,592
Other current liabilities		3,285	3,119	3,400
Total current liabilities		21,027	19,494	18,411
Total liabilities		27,146	24,296	23,732
TOTAL SHAREHOLDERS´ EQUITY AND LIABILITIES		33,798	30,625	30,603
ASSETS PLEDGED		336	312	338
CONTINGENT LIABLITIES		6,001	5,314	5,557

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

Changes in shareholders´equity Group

Group		September 30, 2007			December 31, 2006
			Total			Total
	Shareholders´	Minority	shareholders´	Shareholders´	Minority	shareholders´
SEK M	equity	interests	equity	equity	interests	equity
Opening balance, January 1	6,795	75	6,870	6,785	94	6,879
Change in translation reserve during the year	7	1	8	-33	-3	-36
Change in fair value reserve during the year				-1		-1
Change in hedging reserve during the year	14		14	-1		-1
Tax reported against shareholders´ equity	30		30	-46		-46
Changes in minority interests		-46	-46		4	4
Total change in net asset value reported directly
against equity, excluding transactions involving
Company shareholders	6,846	30	6,876	6,704	95	6,799
Net profit/loss for the year	1,705	4	1,709	1,706	1	1,707
Total change in net asset value, excluding
transactions involving Company shareholders	8,552	34	8,585	8,410	96	8,506
Dividends	-1,951	-4	-1,955	-1,675	-21	-1,696
Sale of treasury shares	22		22	59		59
Closing balance	6,622	30	6,652	6,795	75	6,870

Consolidated cash flow statement

Group		2007	2006	2007	2006	Oct. 06-	2006
SEK M	Note 2	Jul.-Sep.	Jul.-Sep.	Jan.-Sep.	Jan.-Sep.	Sep. 07	Jan.-Dec.
OPERATING ACTIVITIES
Profit/loss after financial items		814	901	2,001	1,529	2,734	2,263
Adjustments for items not included in cash flow		228	272	110	528	764	1,182
Taxes paid		-77	-54	-419	-278	-413	-271
Cash flow from operating activities before changes in working capital		966	1,119	1,691	1,780	3,085	3,174
Cash flow from changes in working capital
Increase (-)/Decrease (+) in working capital		-144	805	-1,016	-246	499	1,269
Increase (-)/Decrease (+) in properties reported as current assets, net		117	-1,418	-1,264	-1,465	-2,071	-2,271
Cash flow from changes in working capital		-27	-612	-2,280	-1,711	-1,572	-1,002
Cash flow from operating activities		939	507	-589	68	1,514	2,171
INVESTING ACTIVITIES
Sale of building and land		29	48	106	63	115	73
Increase (-)/Decrease (+) from investing activities		-152	-109	219	-369	2	-587
Cash flow from investing activities		-124	-61	325	-306	117	-514
CASH FLOW BEFORE FINANCING		815	446	-264	-238	1,631	1,657
FINANCING ACTIVITIES
Cash flow from financing activities		-835	-256	278	-355	-1,673	-2,307
CASH FLOW DURING THE PERIOD		-20	190	14	-593	-42	-649
Cash and cash equivalents at beginning of period		1,300	1,123	1,253	1,919	1,313	1,919
Effects of exchange rate changes on cash and cash equivalents		-2		11	-13	8	-17
CASH AND CASH EQUIVALENTS AT END OF PERIOD		1,278	1,313	1,278	1,313	1,278	1,253
Short-term investments due later than three months		174	264	174	264	174	173
Total liquid assets		1,453	1,577	1,453	1,577	1,453	1,426

Cash flow from operating activities before changes in working capital amounted to SEK 966 M (1,119) for the July-September period and SEK 1,691 M (1,780) for the January-September period. See also Note 2, "Divested operations."

Cash flow from changes in working capital was a negative SEK 27 M (negative: 612) for the July to September period. For the January-September period, cash flow from changes in working capital was a negative SEK 2,280 M (negative: 1,711). During the quarter, working capital within NCC Property Development and NCC Roads increased relative to the year-earlier period. Investments in housing projects remained high, while cash flow from the sale of property projects improved during the quarter.

During the first nine months of the year, NCC Construction Sweden increased its working capital as a result of expanded operations. NCC Property Development also increased its working capital. Cash flow from sales of property projects improved, while net investments in housing projects continued to increase. Properties classed as current assets, net, were positively affected during the year-earlier period by the signing of a sale-and-leaseback agreement concerning the Sonnengarten district in Berlin.

Cash flow from investing activities was a negative SEK 124 M (negative: 61) for the July-September period and a positive SEK 325 M (negative: 306) for the January-September period. The sale of NCC Roads' Polish asphalt and aggregates operations had a positive effect of SEK 1.1 billion on cash flow during the second quarter, of which SEK 0.4 billion pertained to loans in sold operations, resulting in a net contribution of SEK 0.7 billion.

Cash flow from financing activities was a negative SEK 835 M (negative: 256) for the July-September period. For the January-September period, cash flow from financing activities was a positive SEK 278 M (negative: 355). The positive cash flow for the period has been used to amortize interest-bearing liabilities.

Total cash and cash equivalents, including short-term investments with a maturity exceeding three months, amounted to SEK 1,453 M (1,577).

Notes

Note 1. Accounting principles

This interim report has been compiled in accordance with IAS 34, Interim Financial Reporting. The interim report is compiled in accordance with International Financial Reporting Standards (IFRS), the interpretations of financial standards approved by the EU and with International Financial Reporting Interpretations Committee (IFRIC), as well as the Swedish Financial Accounting Standards Council's RR 31 recommendation, Interim Reporting for Groups, and accompanying references to Chapter 9 of the Annual Accounts Act.

The interim report has been prepared in accordance with the same accounting principles and methods of calculation as the 2006 Annual Report (Note 1 pages 60-71).

Note 2. Divested operations

The divested operations pertain to NCC Roads' Polish asphalt and aggregates operations, which were sold to Strabag in April 2007.

			Continuing operations					Discontinued operations					Group total
	2007	2006	2007	2006	2006	2007	2006	2007	2006	2006	2007	2006	2007	2006	2006
SEK M	Note 1 Jul.-Sep. Jul.-Sep. Jan.-Sep. Jan.-Sep. Jan.-Dec. Jul.-Sep. Jul.-Sep. Jan.-Sep. Jan.-Sep. Jan.-Dec. Jul.-Sep. Jul.-Sep. Jan.-Sep. Jan.-Sep. Jan.-Dec.
Income statement
Net sales	14,177	13,924	40,977	37,001	54,350		558	125	947	1,526	14,177	14,483	41,102	37,948	55,876
Operating expenses	-13,311	-13,071	-39,184	-35,414	-52,033		-506	210	-919	-1,451	-13,311	-13,577	-38,974	-36,333	-53,484
Operating profit/loss	866	854	1,793	1,587	2,317	0	52	335	28	75	866	906	2,128	1,615	2,392
Net financial items	-52	-1	-139	-71	-111		-4	12	-14	-19	-52	-5	-127	-85	-129
Profit/loss after financial items	814	853	1,653	1,515	2,207	0	48	347	14	56	814	901	2,001	1,529	2,263
Tax on net profit/loss for the period	-67	-223	-302	-406	-542		-4	10	-4	-13	-67	-227	-292	-410	-555
Net profit/loss for the period	747	630	1,351	1,110	1,664	0	44	357	10	44	747	674	1,709	1,120	1,708
Attributable to NCC´s shareholders	744	629	1,346	1,111	1,670		41	359	7	37	744	670	1,705	1,117	1,706
Minority interests	3	1	5	-1	-6		4	-2	3	7	3	4	4	2	1
Net profit/loss for the period	747	630	1,351	1,110	1,664	0	44	357	10	44	747	674	1,709	1,120	1,708
Balance sheet
Fixed assets	7,514	6,807	7,514	6,807	7,233		378		378	409	7,514	7,185	7,514	7,185	7,642
Current assets	26,284	22,876	26,284	22,876	22,379		563		563	581	26,284	23,440	26,284	23,440	22,961
Total assets	33,798	29,683	33,798	29,683	29,613	0	942	0	942	990	33,798	30,625	33,798	30,625	30,603
Total liabilities	27,146	23,565	27,146	23,565	22,989	0	731	0	731	743	27,146	24,296	27,146	24,296	23,732
Net assets	6,652	6,118	6,652	6,118	6,624	0	211	0	211	247	6,652	6,329	6,652	6,329	6,870
Cash flow
Cash flow from operating activities	939	472	-542	147	2,134		35	-47	-79	37	939	507	-589	68	2,171
Cash flow from investing activities	-124	-37	-348	-268	-441		-24	673	-38	-72	-124	-61	325	-306	-514
Cash flow from financing activities	-835	-254	298	-466	-2,424		-2	-20	111	117	-835	-256	278	-355	-2,307
Cash flow during the period	-20	181	-592	-587	-731	0	9	606	-6	82	-20	190	14	-593	-649

Note 3. Segment reporting

Business segments

Segment reporting is prepared for the Group´s business segments.

Business segments are the Group´s primary segments. The Group consists of the following business segments:

NCC´s construction units, which construct housing, offices, other buildings, industrial facilities, roads,civil engineering structures and other types of infrastructure, with a focus an the Nordic region.

NCC Property Development, which develops and sells commercial properties in defined Nordic growth markets.

NCC Roads, whose core business is the production of aggregates and asphalt, combined with paving operations and road services.

GROUP			NCC Construction
						NCC Property		Other and 1)
2007 Jan. - Sep.	Sweden	Denmark	Finland	Norway	Germany	Development	NCC Roads	eliminations	Group
Net sales	16,732	4,175	5,195	4,422	1,546	3,441 2)	6,722	-1,131	41,102
Operating profit	938	19	338	60	52	502	633	-414	2,128
Assets, excluding deferred tax assets, financial receivables and investments	8,571	2,999	3,762	2,529	2,309	4,695	5,398	1,250	31,512
Liabilities, excluding deferred tax liabilities and financial liabilities	10,225	2,327	3,411	3,006	754	3,923	4,515	916	29,076
Capital employed at end of the period	1,769	1,320	1,500	627	1,663	2,219	2,856	-1,146	10,809

			NCC Construction
						NCC Property		Other and 1)
2006 Jan. - Sep.	Sweden	Denmark	Finland	Norway	Germany	Development	NCC Roads	eliminations	Group
Net sales	14,912	4,704	4,603	4,455	1,123	1,566 2)	6,788	-204	37,948
Operating profit	810	-36	285	153	45	182	372	-196	1,615
Assets, excluding deferred tax assets, financial receivables and investments	7,492	2,490	3,071	2,059	1,568	4,116	6,031	1,215	28,041
Liabilities, excluding deferred tax liabilities and financial liabilities	9,080	2,383	2,905	2,506	528	3,288	4,275	510	25,475
Capital employed at end of the period	1,499	841	1,254	628	1,120	2,525	3,827	-709	10,985

1) NCC´s Head Office, results from minor subsidiaries and associated companies, the remaining portion of International Projects, including Polish construction operations, eliminations of inter-company transactions, inter-company gains and oher corporate adjustments are included under this heading. Since September 2007 NCC´s Industrial development project, NCC Complete, is reported under this heading. The comparative figures have been changed.

2) Development projects amounting to SEK 3,441 M (1,567) and managed properties (reported net) amounting to SEK 46 M (37), making a total of SEK 3,486 M (1,604), were sold.

Note 4. Personnel expenses

SEK M	2007	2006	2007	2006	Oct. 06-	2006
	Jul.-Sep.	Jul.-Sep.	Jan.-Sep.	Jan.-Sep.	Sep. 07	Jan.-Dec.
Personnel expenses	2,965	2,732	8,451	7,828	11,173	10,550

Note 5. Depreciation

	2007	2006	2007	2006	Oct. 06-	2006
SEK M	Jul.-Sep.	Jul.-Sep.	Jan.-Sep.	Jan.-Sep.	Sep. 07	Jan.-Dec.
Other intangible assets	-8	-6	-20	-14	-27	-21
Owner-occupied properties	-11	-12	-33	-37	-56	-60
Machinery and equipment	-107	-128	-334	-360	-447	-473
Total depreciation/amortization	-126	-147	-386	-411	-530	-555

Note 6. Impairment losses

	2007	2006	2007	2006	Oct. 06-	2006
SEK M	Jul.-Sep.	Jul.-Sep.	Jan.-Sep.	Jan.-Sep.	Sep. 07	Jan.-Dec.
Property projects within NCC Property Development			-4		-4
Owner-occupied properties					-1	-1
Financial fixed assets					-10	-10
Goodwill within NCC Roads 1)		-17	-90	-17	-93	-20
Total impairment expenses		-17	-94	-17	-109	-32

1) Impairment losses on goodwill pertains to subsidiaries whose value in use proves to be lower than the carrying value following impairment testing. The booked residual value of goodwill is subject to impairment testing annually and whenever indications of a change in value arise. The reasons for reporting impairment losses could include changed market conditions or return requirements that result in a lower recoverable value.

Note 7. Specification of net indebtedness

	2007	2006	2006
SEK M	Sep. 30	Sep. 30	Dec. 31
Long-term interest-bearing receivables	401	456	546
Current interest-bearing receivables	356	529	466
Short-term investments	430	333	213
Cash and cash equivalents	849	980	1,040
Total interest-bearing receivables and cash	2,036	2,298	2,264
Long-term interest-bearing liabilities	2,141	2,106	2,142
Current interest-bearing liabilities	2,015	2,550	552
Total interest-bearing liabilities	4,156	4,656	2,694
Net indebtedness	2,120	2,358	430

Parent company income statement

	2007	2006	2007	2006	Oct. 06-	2006
SEK M Note 1	Jul.-Sep.	Jul.-Sep.	Jan.-Sep.	Jan.-Sep.	Sep. 07	Jan.-Dec.
Net sales	6,142	4,132	16,997	12,804	21,276	17,083
Production costs	-6,066	-3,741	-15,540	-11,515	-19,417	-15,392
Gross profit	76	391	1,457	1,289	1,859	1,691
Sales and administration costs	-225	-224	-910	-792	-1,217	-1,099
Impairment losses				-1		-1
Operating profit	-148	167	547	496	642	591
Result from financial investment
Result from participations in Group companies	-1	-123	1,020	141	651	-228
Result from participations in associated companies			1	1	1	1
Result from other financial fixed assets	1		1
Result from financial current assets	19	26	46	66	88	108
Interest expense and similar items	-22	-34	-110	-69	-112	-71
Result after financial items	-152	37	1,505	635	1,270	401
Appropriations					-117	-117
Tax on net profit for the period	-30	87	-227	-7	-300	-80
Net profit for the period	-182	124	1,278	628	853	204

Parent company balance sheet

		2007	2006	2006
SEK M	Note 1	Sep. 30	Sep. 30	Dec. 31
ASSETS
Intangible fixed assets		1	2	2
Tangible fixed assets		150	146	146
Financial fixed assets		6,379	7,298	6,952
Total fixed assets		6,530	7,445	7,099
Housing projects		465	685	334
Materials and inventories		1	1	2
Current receivables		4,763	4,571	4,291
Short term investments		1,776	1,795	2,096
Cash and bank balances		915	581	989
Total current assets		7,921	7,633	7,711
TOTAL ASSETS		14,451	15,079	14,810
SHAREHOLDER´S EQUITY AND LIABILITIES
Shareholder´s equity		3,222	3,537	3,873
Untaxed reserves		431	314	431
Provisions		793	565	657
Long term liabilities		2,813	3,068	3,032
Current liabilities		7,192	7,594	6,817
TOTAL SHAREHOLDER´S EQUITY AND LIABILITIES		14,451	15,079	14,810
Assets pledged		12	13	12
Contingent liabilities		19,036	17,601	15,836

Notes to the Parent Company income statements and balande sheets Note 1. Accounting principles

The Parent Company has compiled its interim report in accordance with the Annual Accounts Act (1995:1554) and the Swedish Financial Accounting Standards Council's RR 32:06 recommendation, Interim Reporting for Legal Entities. The interim report has been prepared in accordance with the same accounting principles and methods of calculation as the 2006 Annual Report (Note 1 pages 60-71).

Reporting occasions

Year-end report 2007 February 7, 2008

Solna, October 30, 2007

Olle Ehrlén President and CEO

Auditors' report

Introduction

We have carried out a limited review of the interim report for NCC AB for the January 1, 2007 to September 30, 2007 period. The Board and President are responsible for preparing and presenting this interim report in accordance with the Annual Accounts Act and IAS 34. Our responsibility is to express an opinion pertaining to this interim report based on our limited review.

Focus and scope of the limited review

We have carried out our review in accordance with the Standard on Review Engagements SÖG 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. Such a review consists of making inquiries, primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures. Such a review has a different orientation and a substantially narrower scope than an audit conducted in accordance with Standards on Auditing in Sweden RS and other generally accepted accounting practices. The procedures performed in such a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified had an audit been carried out. Therefore, an opinion expressed on the basis of such a review does not entail the same level of assurance as an opinion expressed on the basis of an audit.

Conclusion

Based on our limited review, nothing has come to our attention that leads us to believe that this interim financial report was not prepared in accordance with the Annual Accounts Act and IAS 34.

Stockholm, October 30, 2007 KPMG Bohlins AB Per Bergman Authorized Public Accountant

If you have any questions, please contact:

Chief Financial Officer Ann-Sofie Danielsson (Tel: +46 8 585 517 17 or +46 70 674 07 20). Senior Vice President Corporate Communications Annica Gerentz (Tel: +46 8 585 522 04 or +46 70 398 42 09).

An information meeting, including an integrated Web and telephone conference, will be held at 3:30 p.m. on Tuesday, October 30 at Vallgatan 5, Solna. The presentation will be held in Swedish. To participate in the teleconference, call +46 (0)8 505 598 53 five minutes before the conference starts, and state NCC.

Key figures and multi-year review

	2002	2003	2004	2005	2006	Oct. 06-	2006	2007
SEK M		Jan.-Dec. Jan.-Dec. Jan.-Dec. Jan.-Dec. Jan.-Dec.					Sep. 07 Jan.-Sep. Jan.-Sep.
Accounts
Net sales	45,165	45,252	46,534	49,506	55,876	59,030	37,948	41,102
Operating profit/loss	1,820	5	1,147	1,748	2,392	2,905	1,615	2,128
Profit/loss after financial items	1,306	-323	945	1,580	2,263	2,734	1,529	2,001
Net profit/loss during the year/period	844	-400	876	1,187	1,708	2,297	1,120	1,709
Cash flow before financing	5,055	762	5,244	2,115	1,657	1,631	-238	-264
Profitability ratios
Return on shareholder´s equity, % 2)	11	neg	14	18	27	35	23	35
Return on capital employed, % 2)	10	1	9	17	24	28	20	28
Financial ratios at the end of the period
Interest-coverage ratio, times 2)	2.4	0.5	3.6	6.9	11.5	11.4	9.3	11.4
Equity/assets ratio, %	22	21	24	25	22	20	21	20
Interest-bearing liabilities/total assets, %	31	28	17	12	9	12	15	12
Net indebtedness	5,816	4,891	1,149	496	430	2,120	2,358	2,120
Debt/equity ratio, times	0.8	0.8	0.2	0.1	0.1	0.3	0.4	0.3
Capital employed at year-/period-end	18,759	14,678	11,503	10,032	9,565	10,809	10,985	10,809
Capital employed average 2)	20,770	17,770	14,054	10,930	10,198	10,591	10,509	10,591
Capital turnover rate, times 2)	2.2	2.5	3.3	4.5	5.5	5.6	5.1	5.6
Share of risk-bearing capital, %	24	23	26	26	24	21	22	21
Average interest rate, %	5.3	4.6	4.8	4.8	4.8		4.2	4.7
Average period of fixed interest, years	1.3	0.9	1.3	1.1	2.6	1.6	1.3	1.2
Order status
Orders received	43,098	40,941	45,624	52,413	57,213	63,708	40,602	47,097
Order backlog	23,788	23,752	27,429	32,607	36,292	45,599	36,157	45,599
Per share data
Net profit/loss for the period, before dilution, SEK	7.95	-4.10	8.53	11.07	15.80	21.19	10.36	15.75
Net profit/loss for the period, after dilution, SEK	7.55	-4.10	8.05	10.86	15.74	21.17	10.31	15.73
P/E ratio 2)	7	neg	10	13	12	8	12	8
Ordinary dividend, SEK	2.75	2.75	4.50	5.50	8.00
Extraordinary dividend, SEK 1)		6.70	10.00	10.00	10.00
Dividend yield, %	5.2	17.0	16.5	10.9	9.6
Dividend yield excl. extraordinary dividend, %	5.2	5.0	5.1	3.9	4.3
Shareholder´s equity before dilution, SEK	74.20	60.45	65.58	63.30	62.86	61.09	57.76	61.09
Shareholder´s equity after dilution, SEK	70.08	57.08	61.95	62.60	62.69	61.09	57.55	61.09
Share price/shareholder´s equity, %	71	92	134	225	298	264	273	264
Share price at year-/period-end, NCC B, SEK	53.00	55.50	88.00	142.50	187.50	161.50	157.50	161.50
Number of shares
Total number of issued shares, millions 3)	108.4	108.4	108.4	108.4	108.4	108.4	108.4	108.4
Treasury shares, millions	6.0	6.0	6.0	1.2	0.3		0.4
Shares outstanding before dilution at year/period end, m	102.4	102.4	102.4	107.2	108.1	108.4	108.0	108.4
Average number of shares outstanding before dilution
during the year/period, millions	103.6	102.4	102.4	106.4	108.0	108.3	107.9	108.3
Market capitalization	5,366	5,625	8,984	15,282	20,242	17,509	17,064	17,509
Personnel
Average number of employees	25,554	24,076	22,375	21,001	21,784	21,184	21,225	20,625

Financial objectives and dividend

		2002	2003	2004	2005	2006	Oct. 06-
SEK M	Target		Jan.-Dec. Jan.-Dec. Jan.-Dec. Jan.-Dec. Jan.-Dec.				Sep. 07
Return on shareholder´s equity, %	15	11	neg	14	18	27	35
Debt/equity ratio, times	<1	0.8	0.8	0.2	0.1	0.1	0.3
Cash flow before financing	Positive	5,055	762	5,244	2,115	1,657	1,631
Dividend ordinary, SEK Policy: As of 2005, at least	50% of profit after tax	2.75	2.75	4.50	5.50	8.00
Extraordinary dividend, SEK 1)			6.70	10.00	10.00	10.00

1) The extraordinary dividend for 2003 pertains to all of the shares in Altima.

2) Key ratios for Sep. are calculated on a 12 months average.

3) NCC´s shares are all ordinary shares.

Figures for the years from 2002 to 2003 are not adjusted for IFRS.

Figures for 2004 are not adjusted for IAS 39, Financial Instruments.

For definitions of key figures, see Annual Report for 2006, page 99.

Business segments

	2007	2006	2007	2006	Oct. 06-	2006
SEK M	Jul.-Sep.	Jul.-Sep.	Jan.-Sep.	Jan.-Sep.	Sep. 07	Jan.-Dec.
Group
Orders received	16 782	12 455	47 097	40 602	63 708	57 213
Orders backlog	45 599	36 157	45 599	36 157	45 599	36 292
Net sales	14 177	14 483	41 102	37 948	59 030	55 876
Operating profit/loss	866	906	2 128	1 615	2 905	2 392
Operating margin, %	6,1	6,3	5,2	4,3	4,9	4,3
Profit/loss after financial items	814	901	2 001	1 529	2 734	2 263
Net profit/loss for the period	747	674	1 709	1 120	2 297	1 708
Earnings per share after dilution, SEK Average number of shares outstanding	6,86	6,18	15,73	10,31	21,17	15,74
after dilution during the period	108,4	108,4	108,4	108,4	108,4	108,4
NCC Construction Sweden 1)
Orders received	9 015	5 235	21 112	15 731	28 763	23 382
Orders backlog	21 593	16 543	21 593	16 543	21 593	17 152
Net sales	5 610	5 005	16 732	14 912	23 918	22 098
Operating profit/loss	330	300	938	810	1 364	1 235
Operating margin, %	5,9	6,0	5,6	5,4	5,7	5,6
NCC Construction Denmark
Orders received	728	1 027	3 878	5 265	5 436	6 822
Orders backlog	4 391	4 945	4 391	4 945	4 391	4 604
Net sales	1 287	1 396	4 175	4 704	5 964	6 493
Operating profit/loss	-17	-59	19	-36	20	-35
Operating margin, %	-1,3	-4,2	0,5	-0,8	0,3	-0,5
NCC Construction Finland
Orders received	2 518	1 397	7 149	5 284	8 940	7 076
Orders backlog	6 587	4 629	6 587	4 629	6 587	4 525
Net sales	1 742	1 642	5 195	4 603	7 042	6 450
Operating profit/loss	99	108	338	285	443	390
Operating margin, %	5,7	6,6	6,5	6,2	6,3	6,0
NCC Construction Norway
Orders received	1 241	1 299	5 611	6 122	7 471	7 982
Orders backlog	7 355	5 442	7 355	5 442	7 355	5 621
Net sales	1 528	1 462	4 422	4 455	5 969	6 002
Operating profit/loss	55	53	60	153	85	179
Operating margin, %	3,6	3,6	1,4	3,4	1,4	3,0
NCC Construction Germany
Orders received	765	745	1 921	1 308	2 957	2 344
Orders backlog	2 225	1 463	2 225	1 463	2 225	1 818
Net sales	655	330	1 546	1 123	2 186	1 763
Operating profit/loss	23	14	52	45	92	85
Operating margin, %	3,4	4,3	3,4	4,0	4,2	4,8
NCC Property Development
Net sales	658	1 326	3 441	1 566	5 647	3 773
Operating profit/loss	102	171	502	182	792	472
NCC Roads
Orders received	2 510	2 722	7 385	6 898	10 220	9 733
Orders backlog	2 125	1 863	2 125	1 863	2 125	1 426
Net sales	3 171	3 451	6 722	6 788	9 978	10 044
Operating profit/loss	411	429	633	372	676	415
Operating margin, %	13,0	12,4	9,4	5,5	6,8	4,1
NCC Roads excl. the Polish asphalt- and aggregate operations
Orders received	2 510	2 164	7 260	5 951	9 515	8 206
Orders backlog	2 125	1 863	2 125	1 863	2 125	1 426
Net sales	3 170	2 893	6 597	5 841	9 274	8 518
Operating profit/loss	411	377	298	344	294	340
Operating margin, %	13,0	13,0	4,5	5,9	3,2	4,0

1) Excluding NCC Complete

Rounding-off differences may occur in all tables.