NCC Group

Quarterly Report • Jul 18, 2014

Interim report January 1 – June 30, 2014

April 1 – June 30, 2014

• Orders received: SEK 17,303 M (17,798)
• Net sales: SEK 13,479 M (13,535)
• Profit after financial items: SEK 576 M (457)
• Profit after tax for the period: SEK 451 M (365)
• Earnings per share: SEK 4.14 (3.35)

January 1 – June 30, 2014

• Orders received: SEK 30,527 M (29,474)
• Net sales: SEK 23,311 M (23,620)
• Profit after financial items: SEK 336 M (181)
• Profit after tax for the period: SEK 264 M (145)
• Earnings per share: SEK 2.43 (1.35)

	2014 2014	2013	2014 2014	2013	Jul. 13-	2013
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
Orders received	17,303 17,303	17,798	30,527 30,527	29,474	58,032	56,979
Net sales	13,479 13,479	13,535	23,311 23,311	23,620	57,514	57,823
Operating profit/loss	677 677	526	515 515	309	2,885	2,679
Profit/loss after financial items	576	457	336	181	2,555	2,400
Net profit/loss for the period	451	365	264	145	2,108	1,989
Profit/loss per share after dilution, SEK	4.14	3.35	2.43	1.35	19.49	18.40
Cashflow before financing	-1,267 -1,267	-1,402	-2,227 -2,227	-2,351	1,786	1,661
Return on shareholders´ equity after tax, %					27	26
Debt/equity ratio, times	1.2 1.2	1.4	1.2 1.2	1.4	1.2	0.7
Net indebtedness	8,760 8,760	9,722	8,760 8,760	9,722	8,760	5,656

CONTENTS

Comments by CEO 2 Group performance 3 NCC's Construction units 5 NCC Roads 7 NCC Housing 8 NCC Property Development 10 Accounts, Group 12 Notes, Group 15 Accounts, Parent Company 19 Notes, Parent Company 20 Reporting by geographical market and quarterly review 23 Key figures 24 NCC in brief 25

Comments from CEO Peter Wågström

After a varied start to 2014, the trend for the second quarter was generally positive. Market conditions improved in several of NCC's markets. Orders received were favorable and our order backlog is at the highest level ever. Housing sales were strong and a high level of activity prevailed in our industrial and commercial property development businesses. NCC's profit after financial items rose to SEK 576 M (457) for the second quarter and amounted to SEK 336 M (181) for the first six months of the year.

CONSTRUCTION OPERATIONS ON THE RIGHT TRACK

Last year, the Norwegian operation had an adverse impact on earnings, but we can now see that the measures implemented have begun to generate results. Although earnings and margins improved in all Construction units for the quarter, there is more work to do. Orders received were at a high level, primarily in Sweden and Denmark. The order backlog in the construction operations grew by SEK 3.7 billion in the quarter.

FAVORABLE ASPHALT SALES AND IMPROVED ROAD SERVICES

There was a high level of activity in our industrial business during the quarter. The sales volumes of aggregates and asphalt rose compared with the year-earlier period. Results improved primarily due to higher earnings in the asphalt operations but also due to improved earnings from road services. Higher volumes and lower production costs were behind the improved results from the asphalt operations.

HOUSING STARTS FORM THE BASIS

Strong housing sales facilitate continued housing starts. At the close of the quarter, we had 32 percent more housing units to be completed during 2015, compared with the corresponding date in the preceding year for completion during 2014. We have a total of 7,600 housing units under construction.

RESTORATION OF PROPERTY PORTFOLIO

Our portfolio of commercial properties was reduced in 2013 following the sale and completion of several projects. We have now been focusing on replacing a number of these projects with new ones. During the second quarter, three projects were started and we now have 16 ongoing projects. A decision was also made to commence construction of Phase 2 of the Torsplan office project in Stockholm in the third quarter. We sold two projects during the quarter and one project after the end of the quarter.

PROFIT/LOSS AFTER FINANCIAL ITEMS, SEK M

RIGHT BUSINESS

Focusing on the right business in a difficult market generated results in 2013. Although we now see a better market, we need to continue focusing on operational efficiency, make the "right" deals and take the "right" risks. We must leverage the opportunities that arise, but we will only grow if this can be done profitably.

Peter Wågström, President and CEO Solna, July 18, 2014

Group performance

MOST RECENT QUARTER, APRIL – JUNE 2014

ORDERS RECEIVED AND ORDER BACKLOG

Orders received were favorable and amounted to SEK 17,303 M (17,798). Orders received were higher in NCC's Construction units in Sweden and Denmark due to more housing and non-residential projects. Orders received were lower in NCC's Construction units in Norway and Finland, as well as in NCC Housing and NCC Roads. In the year-earlier period, NCC Construction Finland received an order for SEK 1 billion, with no such corresponding order this year. Changes in exchange rates had a positive impact of SEK 127 M on orders received compared with the yearearlier period. The Group's order backlog rose SEK 5,859 M to SEK 56,657 M, compared with the preceding quarter. Changes in exchange rates increased the order backlog by SEK 828 M during the quarter.

NET SALES

Net sales were in line with the year-earlier period and totaled SEK 13,479 M (13,535). Lower sales in NCC's Construction units in Sweden and Norway, as well as in NCC Property Development were offset by higher sales in the other business areas. Lower net sales were due to a lower opening order backlog in NCC Construction Sweden, and also because a large proportion of the major projects are in the preliminary production phases. Changes in exchange rates had a positive impact of SEK 112 M on sales compared with the year-earlier period.

EARNINGS

NCC's operating profit was higher than the year-earlier period and totaled SEK 677 M (526). All business areas reported higher sales, with the exception of NCC Property Development. Earnings in NCC Construction Denmark increased due to higher production and results in NCC Construction Finland also improved on account of lower expenditure. Earnings in NCC Roads were positively impacted by higher margins in the asphalt and road service operations. Higher revenues from housing sales to private customers had a positive impact on earnings for NCC Housing. In the year-earlier period, impairment losses on a number of other building projects had a negative impact of SEK 150 M on NCC Construction Norway's earnings.

CASH FLOW

Cash flow from operating activities improved year-on-year to negative SEK 1,267 M (neg: 1,402). The improvement was due to better results, higher sales of housing projects, as well as less investment in property projects. Cash flow from other changes in working capital was lower compared with the year-earlier period due to the lower percentage of interest-free financing.

SEASONAL EFFECTS

NCC Roads' operations and certain operations in NCC's Construction units are impacted by seasonal variations due to cold weather. The first quarter is normally weaker than the rest of the year.

ORDER BACKLOG

NET INDEBTEDNESS

Net indebtedness (interest-bearing liabilities less cash and cash equivalents less interest-bearing receivables) at June 30 amounted to SEK 8,760 M (9,722), refer also to Note 5, Specification of net indebtedness. At March 31, 2014, net indebtedness was SEK 6,572 M. The average maturity period for interest-bearing liabilities, excluding loans in Finnish housing companies and Swedish tenant-owner associations, as well as pension commitments according to IAS 19, was 33 (32) months at the end of the quarter. NCC's unutilized committed lines of credit at the end of the quarter amounted to SEK 4.0 billion (3.8), with an average remaining maturity of 29 (39) months.

INTERIM PERIOD, JANUARY – JUNE 2014

ORDERS RECEIVED AND ORDER BACKLOG

Orders received amounted to SEK 30,527 M (29,474). The year-on-year increase was mainly attributable to improved orders received in NCC Construction Sweden, as well as in NCC Roads and NCC Housing. Changes in exchange rates increased orders received by SEK 18 M compared with the year-earlier period. The order backlog increased and amounted to SEK 56,657 M at the end of the period. Changes in exchange rates increased the order backlog by SEK 971 M.

NET SALES

Net sales amounted to SEK 23,311 M (23,620). The change was due to lower sales in NCC Construction Sweden and NCC Construction Norway. Changes in exchange rates had a positive impact of SEK 71 M on sales compared with the year-earlier period.

EARNINGS

NCC's operating profit amounted to SEK 515 M (309). The improvement was primarily attributable to higher earnings in NCC Construction Norway, NCC Roads and NCC

NET INDEBTEDNESS

Housing. At the same time, lower earnings from projects recognized in profit resulted in lower earnings for NCC Property Development. In the year-earlier period, earnings in NCC Construction Norway were negatively impacted by an impairment loss of SEK 199 M on a number of projects, while changed pension regulations had a positive impact of SEK 65 M. Net financial items amounted to an expense of SEK 178 M (neg: 128) deteriorated due to higher financial costs resulting from a higher interest-rate situation in Russia.

CASH FLOW

During the first half of the year, cash flow from operating activities improved year-on-year due to higher earnings, an increase in the sale of housing and property projects, as well as less investment in property projects. The interestfree financing was lower than in the preceding year.

NET INDEBTEDNESS

Net indebtedness (interest-bearing liabilities less cash and cash equivalents less interest-bearing receivables) at June 30 amounted to SEK 8,760 M (9,722), refer also to Note 5, Specification of net indebtedness.

	2014 2014	2013	2014 2014	2013	Jul. 13-	2013
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun.Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
Net indebtedness, opening balance	-6,572 -6,572	-7,250 -7,250	-5,656	-6,467	-9,722	-6,467
Cash flow before financing	-1,267	-1,402	-2,227	-2,351	1,786	1,661
Acquisition/Sale of treasury shares		-28		-28		-28
Change of provisions for pensions	-275	19	-231	183	-175	268
Paid dividend	-647	-1,080	-647	-1,080	-647	-1,080
Other changes in net indebtedness		19		21	-2	-10
Net indebtedness, closing balance	-8,760 -8,760	-9,722 -9,722	-8,760	-9,722	-8,760	-5,656

ORDERS RECEIVED AND ORDER BACKLOG

	Orders received						Order backlog
	2014 2014	2013	2014 2014	2013	Jul. 13-	2013	2014	2013	2013
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.	Jun. 30 30	Jun. 30	Dec. 31
NCC Construction Sweden	7,758	6,893	12,693	10,428	22,612	20,348	19,562	17,570	16,211
NCC Construction Denmark	1,803	859	2,624	2,988	4,565	4,929	5,384	4,443	4,447
NCC Construction Finland	2,229	2,717	3,409	3,806	6,094	6,491	6,082	6,404	5,630
NCC Construction Norway	1,038	2,013	2,808	3,771	6,135	7,098	6,287	7,235	6,364
NCC Roads	3,082	3,555	6,127	5,527	12,911	12,311	7,894	5,507	4,598
NCC Housing	3,030	3,252	5,598	5,046	11,473	10,921	16,572	14,357	14,200
Total	18,941 18,941	19,289 19,289	33,259	31,566	63,790	62,097	61,780	55,516	51,450
Other items and eliminations	-1,638	-1,491	-2,732	-2,092	-5,758	-5,118	-5,123	-3,437	-3,812
Group	17,303 17,303	17,798 17,798	30,527	29,474	58,032	56,979	56,657	52,079	47,638
of which
proprietary housing projects to private customers	2,567	2,830	5,087	4,432	9,685	9,029	14,506	12,640	12,300
proprietary property development projects	1,143	1,768	1,251	1,980	1,579	2,309	2,675	3,214	2,374

NET SALES AND OPERATING RESULTS

	Net sales						Operating profit
	2014 2014	2013	2014 2014	2013	Jul. 13-	2013	2014	2013	2014	2013	Jul. 13-	2013
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun.Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun. 14		Jan.-Dec. Apr.-Jun. Apr.-Jun.Apr.-Jun. Apr.-Jun. Jan.-Jun. Jan.-Jun.Jan.-Jun. Jan.-Jun.					Jun. 14 Jan.-Dec.
NCC Construction Sweden	5,145	5,592	9,340	10,251	20,618	21,530	146	145	195	202	630	637
NCC Construction Denmark	963	806	1,846	1,566	3,826	3,546	65	47	116	86	238	208
NCC Construction Finland	1,790	1,752	3,140	3,175	6,646	6,680	41	25	68	44	151	127
NCC Construction Norway	1,587	1,780	3,085	3,484	7,010	7,408	24	-115	28	-101	133	3
NCC Roads	3,271	3,185	4,489	4,341	12,147	11,999	255	230	-134	-238	510	406
NCC Housing	2,032	1,524	3,375	2,854	9,550	9,030	156	45	202	107	700	605
NCC Property Development	579	656	1,317	1,264	4,864	4,811	40	152	90	230	573	713
Total	15,367 15,367	15,296 15,296	26,591	26,934	64,660	65,003	727	530	563	329	2,934	2,700
Other items and eliminations	-1,887	-1,761	-3,279	-3,314	-7,145	-7,180	-50	-5	-48	-20	-49	-21
Group	13,479 13,479	13,535 13,535	23,311	23,620	57,515	57,823	677	526	515	309	2,885	2,679

NCC's Construction units

MARKET PERFORMANCE

During the second quarter, the market in Sweden improved, primarily in housing and other buildings. In Denmark, growth is primarily in the metropolitan regions of Copenhagen and Aarhus. In Norway, infrastructure investments are generating an expanding civil-engineering market. The Finnish market is challenging. In general, NCC expects that the Nordic construction market will grow slightly in 2014 and the strongest trend is expected in the Norwegian and Swedish markets.

MOST RECENT QUARTER, APRIL – JUNE 2014

ORDERS RECEIVED AND ORDER BACKLOG

Orders received by all of NCC's Construction units totaled SEK 12,829 M (12,482). Orders received increased in the housing and other buildings segments, primarily in Sweden and Denmark. Orders received were slightly lower in Finland. Orders received in the civil-engineering segment were lower as a result of a decline in orders received in NCC Construction Norway. In the year-earlier period, an order for a major bridge project in Norway was secured for SEK 739 M. The total order backlog increased SEK 3,719 M to SEK 37,314 M during the quarter.

NET SALES

In total, sales for NCC's Construction units declined to SEK 9,485 M (9,931). Net sales were lower for NCC's Construction units in Sweden and Norway, while they were higher in Denmark and Finland. In Sweden, several new major projects are in the preliminary phases, entailing low net sales.

OPERATING RESULT

Operating profit for all of NCC's Construction units totaled SEK 277 M (103). The greatest earnings improvement was reported by NCC Construction Norway, which reported impairment losses of SEK 150 M on projects in the yearearlier period, which had a negative impact on earnings. Earnings in NCC Construction Denmark increased due to higher production, and results in NCC Construction Finland also improved due to lower expenditure.

INTERIM PERIOD, JANUARY – JUNE 2014

ORDERS RECEIVED AND ORDER BACKLOG

Orders received for the Construction units increased yearon-year and totaled SEK 21,534 M (20,993). The increase was due to higher orders received in the Housing segment, primarily in Sweden and Denmark.

NET SALES

Sales in the Construction units totaled SEK 17,411 M (18,475). The change was primarily attributable to lower production in Sweden and Norway.

OPERATING RESULTS

Operating profit totaled SEK 406 M (231). Margins improved in all Construction units. In the year-earlier period, earnings for NCC Construction Norway were negatively impacted by impairment losses of SEK 199 M on projects, and positively impacted by changed pension ordinance in the amount of SEK 65 M.

	2014	2013	2014	2013	Jul. 13-	2013
SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
NCC Construction Sweden
Orders received	7,758	6,893	12,693	10,428	22,612	20,348
Order backlog	19,562	17,570	19,562	17,570	19,562	16,211
Net sales	5,145	5,592	9,340	10,251	20,618	21,530
Operating profit/loss	146	145	195	202	630	637
Operating margin, %	2.8	2.6	2.1	2.0	3.1	3.0
NCC Construction Denmark
Orders received	1,803	859	2,624	2,988	4,565	4,929
Order backlog	5,384	4,443	5,384	4,443	5,384	4,447
Net sales	963	806	1,846	1,566	3,826	3,546
Operating profit/loss	65	47	116	86	238	208
Operating margin, %	6.8	5.8	6.3	5.5	6.2	5.9
NCC Construction Finland
Orders received	2,229	2,717	3,409	3,806	6,094	6,491
Order backlog	6,082	6,404	6,082	6,404	6,082	5,630
Net sales	1,790	1,752	3,140	3,175	6,646	6,680
Operating profit/loss	41	25	68	44	151	127
Operating margin, %	2.3	1.4	2.2	1.4	2.3	1.9
NCC Construction Norway
Orders received	1,038	2,013	2,808	3,771	6,135	7,098
Order backlog	6,287	7,235	6,287	7,235	6,287	6,364
Net sales	1,587	1,780	3,085	3,484	7,010	7,408
Operating profit/loss	24	-115	28	-101	133	3
Operating margin, %	1.5	-6.4	0.9	-2.9	1.9	0.0
Total Construction
Orders received	12,829	12,482	21,534	20,993	39,407	38,866
Order backlog	37,314	35,652	37,314	35,652	37,314	32,653
Net sales	9,485	9,931	17,411	18,475	38,099	39,163
Operating profit/loss	277	103	406	231	1,151	976
Operating margin, %	2.9	1.0	2.3	1.2	3.0	2.5

ORDERS RECEIVED BY PROJECT SIZE FOR NCC'S CONSTRUCTION UNITS IN QUARTER 2

NCC CONSTRUCTION FINLAND

NCC CONSTRUCTION NORWAY

ORDER BACKLOG BY PROJECT SIZE FOR NCC'S CONSTRUCTION UNITS AT JUNE 30, 2014

ORDERS RECEIVED AND ORDER BACKLOG BY SEGMENT

	Orders received							Order backlog
	2014	2013	2014	2013	Jul. 13 -	2013	2014	2013	2013
SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.	Jun. 30	Jun. 30	Dec. 31
Civil engineering	3,175	5,106	6,490	7,621	13,213	14,344	11,262	12,193	10,817
Residential	3,991	2,996	5,998	4,340	10,622	8,964	10,343	8,445	8,609
Non-residential	5,698	4,376	9,061	9,038	15,738	15,715	15,316	15,005	13,415
Other items and eliminations	-35	3	-16	-6	-167	-157	393	9	-188
Total	12,829 12,829	12,482 12,482	21,534	20,993	39,407	38,866	37,314	35,652	32,653

8%

NCC Roads

MARKET PERFORMANCE

Demand for aggregates, asphalt and road services was higher year-on-year due to the mild winter, thus facilitating a high level of activity already at the beginning of the quarter. Demand for aggregates declined somewhat at the end of the quarter. Demand for asphalt rose year-on-year primarily in Sweden and Finland. A higher level of activity in the construction market forms the basis for higher demand for aggregates in 2014. The asphalt market also has the potential for growth in 2014. While demand in road services is stable, the market is characterized by intense competition.

MOST RECENT QUARTER, APRIL – JUNE 2014

NET SALES

Net sales were in line with the year-earlier period and totaled SEK 3,271 M (3,185). Although the volume of aggregates and asphalt sold was slightly higher year-onyear, sales were also impacted by lower prices for bitumen.

OPERATING RESULTS

Earnings for the quarter were higher year-on-year and totaled SEK 255 M (230). The increase was due to higher earnings from the asphalt operations and improved earnings from road services. Higher volumes of asphalt, primarily in Sweden, and more efficient production generated higher earnings from the asphalt operations.

CAPITAL EMPLOYED

Capital employed increased seasonally to SEK 4.3 billion during the quarter due to a higher level of activity.

INTERIM PERIOD, JANUARY – JUNE 2014

NET SALES

Sales increased to SEK 4,489 M (4,341) due to higher volumes. The mild winter resulted in higher volumes of aggregates and asphalt. Sales for road services were in line with the year-earlier period.

OPERATING RESULTS

Earnings in the period improved year-on-year, primarily due to the trend in the first quarter. Higher sales of aggregates and asphalt, with better margins, had a positive impact. The operating loss was SEK 134 M (loss: 238).

CAPITAL EMPLOYED

Capital employed rose SEK 0.8 billion to SEK 4.3 billion compared with year-end 2013.

QUARTERLY DATA

	2014 2014	2013	2014 2014	2013	Jul. 13-	2013
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun.Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
NCC Roads
Orders received	3,082	3,555	6,127	5,527	12,911	12,311
Order backlog	7,894	5,507	7,894	5,507	7,894	4,598
Net sales	3,271	3,185	4,489	4,341	12,147	11,999
Operating profit/loss	255	230	-134	-238	510	406
Operating margin, %	7.8	7.1	-3.0	-5.5	4.2	3.4
Capital employed			4,313	3,777	4,313	3,557
Aggregates, tons 1)	8,273 8,273	8,223	12,910 12,910	12,294	28,011	27,395
Asphalt and paving, tons 1)	1,930 1,930	1,842	2,063 2,063	1,919	6,401	6,257
1) Sold volume

NCC Housing

MARKET PERFORMANCE

The market trend remained generally positive in NCC's housing markets. In Germany, prices and demand increased. Low interest rates and an improved labor market in Sweden resulted in healthy demand and an increase in prices. In Denmark, prices increased in Copenhagen and demand was supported by relocations to the city. The economies in Latvia and Estonia are growing and the housing market is recovering. The Russian economy weakened and there is concern about how developments in the Ukraine will impact the Russian economy, however, demand in the housing market in St. Petersburg is favorable. In Finland, households are cautious in terms of investments due to a low increase in real wages and higher unemployment. Although the Norwegian economy is recovering from a decline in 2013 and early 2014, the housing market remains cautious.

MOST RECENT QUARTER, APRIL – JUNE 2014

HOUSING SALES AND CONSTRUCTION STARTS

A total of 1,175 (929) housing units were sold to private customers and 294 (319) to the investor market. Housing sales to private customers increased primarily in St. Petersburg, Sweden and Finland. Construction on the majority of the new housing units also started in these markets. Construction started on a total of 1,274 (1,461) housing units for private customers and 294 (319) housing units for the investor market. Construction starts for the investor market declined in Finland, while there were more starts in Germany and Sweden.

NET SALES

Net sales were higher than in the year-earlier period due to an increase in the number of housing units delivered to private customers and recognized in profit. A total of 757 (544) housing units for private customers and 40 (243) housing units for the investor market were recognized in profit during the quarter. The average price per housing unit was higher than in the year-earlier period, mainly due to higher volumes in Denmark.

OPERATING RESULTS

Operating profit amounted to SEK 156 M (45). NCC Housing's earnings were higher year-on-year, mainly due to higher sales volumes and margins from the sale of housing units to private customers, but also due to better results from the sale of land. Restructuring costs in Sweden totaling SEK 20 M had an impact on results in the year-earlier period.

CAPITAL EMPLOYED

Capital employed rose SEK 0.3 billion to SEK 11.2 billion, primarily due to more housing units in production.

INTERIM PERIOD, JANUARY – JUNE 2014

HOUSING SALES AND CONSTRUCTION STARTS

A total of 2,090 (1,692) housing units were sold to private customers and 432 (399) to the investor market. Housing sales to private customers rose the most in St. Petersburg, but also in Sweden, the Baltic countries and Denmark, while the sale in Germany was on par with the year-earlier period. Sales declined in Finland and Norway. During the first half of the year, construction started on a total of 2,353 (1,936) housing units for private customers and 405 (399) housing units for the investor market. Higher sales in Sweden and St. Petersburg facilitated an increase in housing starts for private customers.

NET SALES

Net sales were higher than in the year-earlier period due to an increase in the number of housing units that were delivered to private customers and recognized in profit. During the period, 1,386 (987) housing units for private customers and 178 (392) housing units for the investor market were recognized in profit.

OPERATING RESULTS

Operating profit amounted to SEK 202 M (107). Earnings were higher year-on-year mainly due to higher sales volumes and margins from the sale of housing units for private customers but also due to better results from the sale of land. Restructuring costs in Sweden totaling SEK 20 M had an impact on results in the year-earlier period.

CAPITAL EMPLOYED

Capital employed totaled SEK 11.2 billion, an increase of SEK 1.3 billion compared with the year-end 2013, resulting from land acquisition and more housing units in production.

	2014	2013	2014	2013	Jul. 13-	2013
SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
NCC Housing
Orders received	3,030	3,252	5,598	5,046	11,473	10,921
Order backlog	16,572	14,357	16,572	14,357	16,572	14,200
Net sales	2,032	1,524	3,375	2,854	9,550	9,030
Operating profit/loss	156	45	202	107	700	605
Operating margin, %	7.7	3.0	6.0	3.7	7.3	6.7
Capital employed			11,181	10,619	11,181	9,856

HOUSING DEVELOPMENT

			Group
	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.		Jan.-Jun. Jan.-Dec.
	2014	2013	2014	2013	2013
Building rights, end of period	32,800	33,600	32,800	33,600	33,200
Of which development rights on options	11,400	11,400	11,400	11,400	13,200
Housing development to private customers
Housing starts, during the period	1,274	1,461	2,353	1,936	3,715
Housing units sold, during the period	1,175	929	2,090	1,692	3,747
Housing units under construction, end of
period	6,014	5,444	6,014	5,444	4,831
Sales rate units under construction, end of
period %	54	47	54	47	47
Completion rate units under construction,
end of period %	50	50	50	50	49
Profit-recognized housing units, during the
period	757	544	1,386	987	2,951
Completed, not profit recognized housing
units, end of period 1)	501	292	501	292	717
Housing units for sale (ongoing and
completed), at end of period	3,150	3,169	3,150	3,169	2,884
Housing development to the investor market
Housing starts, during the period	294	319	405	399	1,095
Housing units sold, during the period	294	319	432	399	1,129
Housing units under construction, end of
period2)	1,600	1,436	1,600	1,436	1,552
Sales rate units under construction, end of
period %	100	98	100	98	98
Completion rate units under construction,
end of period %	50	40	50	40	38
Profit-recognized housing units, during the
period Completed, not profit recognized housing	40	243	178	392	903
units, end of period 3)
	0	34	0	34	0

1) Of the completed, not profit recognized housing units by the end of the period 112 (40) where sold.

2) Of the total number of housing units under construction to the investor market, 1,600 (1,436), 457

(739) has already been profit-recognized and 1,143 (697) remains to be profit-recognized.

A complete table per market is available on NCC:s web site, ncc.se.

The diagram shows the estimated completion schedule for housing units to private customers and units to the investor market that have not yet been recognized in profit. The curve shows the proportion of sold units. Sold units are recognized in profit at the time of delivery.

NCC Property Development

MARKET PERFORMANCE

Conditions in the Nordic property market are favorable, with the exception of Finland. Vacancies in central parts of Oslo and Stockholm are low, while they are somewhat higher in Copenhagen and Helsinki, particularly outside the central areas. Demand in the leasing market is good, except for Finland where demand in the office rental market is weaker. Demand for properties outside the inner city is increasing in Sweden. NCC expects a generally positive trend in the property market in 2014.

MOST RECENT QUARTER, APRIL – JUNE 2014

PROPERTY PROJECTS

During the quarter, one project sale was recognized in profit, the Lielathi Center commercial project in Finland. Leases were signed for 33,200 square meters (46,900) during the period.

Three new projects were started during the quarter: the CH Vallensbaek 3 office project in Denmark, the Alberga D office project in Finland, and the SCA building in Sweden. A decision was also made to commence construction on Phase 2 of the Torsplan office and commercial project in Stockholm in the third quarter.

Two sales completed during the quarter will be recognized in profit in future quarters: The SCA office building project and the Ullevi Park 4 project in Sweden. For information on future profit recognition of projects, refer to the table on the following page. After the end of the quarter, the CH Vallensbaek 3 project was sold and the preliminary date of occupancy is in the second quarter of 2015.

At the end of the quarter, 16 (24) projects were either ongoing or completed but not yet recognized in profit. The costs incurred in all projects totaled SEK 3.0 billion (4.1), corresponding to a completion rate of 58 (57) percent. The leasing rate was 73 (72) percent. Operating net for the quarter amounted to SEK 15 M (11).

NET SALES

Net sales were lower year-on-year and the project that was recognized in profit in Finland accounted for the largest portion of sales. One project was recognized in profit in the year-earlier period.

OPERATING RESULTS

Operating profit was SEK 40 M (152). During the quarter, one (one) project was recognized in profit in Finland, with a low margin resulting from the weak market. A small land sale, as well as earnings from previous sales also contributed to the results. One office project in central Gothenburg was recognized in profit in the year-earlier period.

CAPITAL EMPLOYED

During the quarter, capital employed increased SEK 0.5 billion to SEK 4.1 billion, mainly due to increased production in ongoing projects.

INTERIM PERIOD, JANUARY – JUNE 2014

PROPERTY PROJECTS

A total of five (three) projects were recognized in profit: four in Finland and one in Denmark. Leases were signed for 51,100 square meters (68,300) during the period.

NET SALES

Net sales were in line with the year-earlier period and totaled SEK 1,317 M (1,264). Most of the net sales in the period derived from the projects recognized in profit during the first quarter.

OPERATING RESULTS

Operating profit was lower than in the year-earlier period and amounted to SEK 90 M (230). Five projects were recognized in profit during the period. Three projects were recognized in profit in the year-earlier period, with better margins. Earnings from previous sales, and land sale also contributed to the results. Operating net for the period amounted to SEK 33 M (24).

CAPITAL EMPLOYED

Capital employed rose SEK 0.1 billion to SEK 4.1 billion.

QUARTERLY DATA

	2014	2013	2014	2013	Jul. 13-	2013
SEK M	Apr.-Jun.	Apr.-Jun.	Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
NCC Property Development
Net sales	579	656	1,317	1,264	4,864	4,811
Operating profit/loss	40	152	90	230	573	713
Capital employed			4,118	5,552	4,118	3,991

			Sold, estimated
			recognition in	Completion	Leasable	Letting
Project	Type	Location	profit	ratio, %	2 area, m	ratio, %
CH Vallensbaek 3	Office	Vallensbæk		21	8 811	51
CH Zenit 4.1	Office	Aarhus		96	2 780	42
CH Zenit 4.2	Office	Aarhus		60	3 490	39
Gladsaxe Company house	Office	Copenhagen	Q1 2015	65	14 847	69
Kolding Retailpark II	Retail	Kolding		84	4 672	70
Portlandsilos	Office	Copenhagen	Q3 2014	94	12 816	50
Roskildevej	Retail	Taastrup		97	4 001	51
Viborg Retail II + III	Retail	Viborg		94	3 156	71
Total Denmark				75 75	54 573 54 573	56
Aitio 1 Vivaldi	Office	Helsinki		94	6 245	71
Alberga D	Office	Espoo		25	5 306	6
Matinkylä 2)	Office	Espoo		34	12 765	24
Tavastehus Centrum	Retail	Hämeenlinna	Q4 2014	91	26 168	90
Total Finland				67 67	50 484 484	59
Lysaker Polaris 1	Office	Oslo		57	19 522	72
Stavanger Business Park 1	Office	Stavanger		88	9 228	100
Total Norway				66 66	28 750 28 750	80
The SCA House	Office	Mölndal	Q4 2016	0	24 400	100
Ullevi park 4	Office	Gothenburg	Q4 2015	45	20 302	100
Total Sweden				24 24	44 702 44 702	100
Total				58 58	178 509509 178 509	73

PROPERTY DEVELOPMENT PROJECTS AT JUNE 30, 2014 1)

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 five previously sold and revenue recognized property projects.

2) The project covers approximately 25,000 square meters of leasable area and isimplemented together with Citycon, a Finnish listed real estate company, in a jointly owned company. The data in the table refer to NCC's share of the project.

Consolidated income statement

		2014 2014	2013	2014 2014	2013	Jul. 13-	2013
SEK M	Note 1	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
Net sales		13,479	13,535	23,311	23,620	57,514	57,823
Production costs	Note 2,3	-12,018	-12,174	-21,256	-21,704	-51,579	-52,027
Gross profit		1,460 1,460	1,361 1,361	2,054	1,915	5,935	5,796
Selling and administrative expenses	Note 2	-787	-836	-1,542	-1,609	-3,063	-3,130
Other operating income/expenses	Note 3	4	1	3	2	15	14
Operating profit/loss		677 677	526 526	515	309	2,885	2,679
Financial income		10	9	23	29	69	75
Financial expense		-112	-77	-202	-157	-399	-354
Net financial items		-102 -102	-69 -69	-178	-128	-330	-279
Profit/loss after financial items		576 576	457 457	336	181	2,555	2,400
Tax on net profit/loss for the period		-125	-93	-72	-36	-447	-411
Net profit/loss for the period		451 451	365 365	264	145	2,108	1,989
Attributable to:
NCC´s shareholders		447	362	262	146	2,102	1,986
Non-controlling interests		4	3	2	-1	6	3
Net profit/loss for the period		451 451	365 365	264	145	2,108	1,989
Earnings per share
Before dilution
Net profit/loss for the period, SEK		4.14	3.35	2.43	1.35	19.49	18.40
After dilution
Net profit/loss for the period, SEK		4.14	3.35	2.43	1.35	19.49	18.40
Number of shares, millions
Total number of issued shares		108.4	108.4	108.4	108.4	108.4	108.4
Average number of shares outstanding before
dillution during the period		107.8	107.9	107.8	108.0	107.8	107.9
Average number of shares after dilution		107.8	107.9	107.8	108.0	107.8	107.9
Number of shares outstanding before dilution at the end of the period		107.8	107.8	107.8	107.8	107.8	107.8

Consolidated statement of comprehensive income

		2014 2014	2013	2014 2014	2013	Jul. 13-	2013
SEK M	Note 1	Apr.-Jun. Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
Net profit/loss for the period		451 451	365 365	264	145	2,108	1,989
Items that have been recycled or should be recycled to net profit/loss for the period
Exchange differences on translating foreign operations		81	117	103	2	101
Change in hedging/fair value reserve		-37	-62	-48	-18	-48	-18
Cash flow hedges		-4	28	-22	33	-36	19
Income tax relating to items that have been or should be recycled
to net profit/loss for the period		9	7	16	-3	19
		50	90	50	15	36	1
Items that cannot be recycled to net profit/loss for the period
Revaluation of defined benefit pension plans		-277	-12	-246	77	-136	187
Income tax relating to items that cannot be recycled to net profit/loss for the period		61	3	54	-17	30	-41
		-216 -216	-9 -9	-192	60	-106	146
Other comprehensive income		-168 -168	81 81	-142	76	-70	147
Total comprehensive income		284 284	447 447	121	220	2,038	2,135
Attributable to:
NCC´s shareholders		280	444	119	221	2,031	2,132
Non-controlling interests		4	3	2	-1	6	3
Total comprehensive income		284 284	447 447	121	220	2,038	2,135

Consolidated balance sheet

		2014 2014	2013	2013
SEK M	Note 1	Jun. 30 30 0	Jun. 30	Dec. 31
ASSETS
Fixed assets
Goodwill		1 856	1 821	1 802
Other intangible assets		317	243	267
Owner-occupied properties		735	679	704
Machinery and equipment		2 545	2 427	2 502
Other long-term holdings of securities		249	141	141
Long-term receivables	Note 5	257	210	247
Deferred tax assets		198	273	249
Total fixed assets	Note 7	6 157	5 795	5 910
Current assets
Property projects	Note 4	5 115	6 242	5 251
Housing projects	Note 4	14 523	12 996	12 625
Materials and inventories		805	802	673
Tax receivables		219	183	92
Accounts receivable		8 006	7 839	7 377
Worked-up, non-invoiced revenues		1 680	1 419	918
Prepaid expenses and accrued income		1 604	1 443	1 325
Other receivables	Note 5	780	1 382	932
Short-term investments1)	Note 5	244	165	143
Cash and cash equivalents	Note 5	1 180	1 198	3 548
Total current assets	Note 7	34 156	33 669	32 883
TOTAL ASSETS		40 313 313	39 464 39 464	38 793
EQUITY
Share capital		867	867	867
Other capital contributions		1 844	1 844	1 844
Reserves		-156	-193	-206
Profit/loss brought forward, including current-year profit/loss		4 926	4 224	6 152
Shareholders´ equity		7 482 482	6 741	8 658
Non-controlling interests		19	6 741 14	17
Total shareholders´ equity		7 500 500	6 755 6 755	8 675
LIABILITIES
Long-term liabilities
Long-term interest-bearing liabilities	Note 5	7 336	7 455	7 029
Other long-term liabilities		379	782	299
Provisions for pensions and similar obligations	Note 5	356	210	125
Deferred tax liabilities		303	282	414
Other provisions		1 959	2 238	2 070
Total long-term liabilities	Note 7	10 333	10 968	9 937
Current liabilities
Current interest-bearing liabilities	Note 5	2 863	3 713	2 515
Accounts payable		4 145	4 883	4 096
Tax liabilities		45	81	58
Invoiced revenues not worked-up		4 988	4 723	4 264
Accrued expenses and prepaid income		3 462	3 687	3 888
Other current liabilities		6 977	4 654	5 360
Total current liabilities	Note 7	22 480	21 741	20 181
Total liabilities		32 813 813	32 709 32 709	30 118
TOTAL SHAREHOLDERS´ EQUITY AND LIABILITIES		40 313 313	39 464 39 464	38 793
ASSETS PLEDGED		1 713 713	1 434	1 482
CONTINGENT LIABLITIES		3 331 331	2 374	2 261

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

		Jun. 30, 2014			Jun. 30, 2013
			Total			Total
		Shareholders´ Non-controlling			shareholders´ Shareholders´ Non-controlling	shareholders´
SEK M	equity	interests	equity	equity	interests	equity
Opening balance, January 1 balance, 1	8,658 8,658	17	8,675	7,634	15	7,649
Total comprehensive income	119	2	121	221	-1	220
Transactions with non-controlling interests					-1	-1
Acqusition of non-controlling interests				-7		-7
Dividends 1)	-1,294		-1,294	-1,080		-1,080
Acquisition/sale of treasury shares				-28		-28
Performance based incentive program	-1		-1	2		2
Closing balance	7,482 7,482	19 19	7,500	6,741	14	6,756

Condensed changes in shareholders' equity, Group

1) The reported amount is the dividend resolved by the Shareholders Annual General Meeting. Regarding the dividend for 2014, in accordance with the decision of the Shareholders Annual General Meeting, SEK 647 M has been paid in April, and the rest will be paid in October.

If previous accounting policies for pensions under IAS 19 had been applied, the equity would have been SEK 1,257 M higher and net debt SEK 356 M lower at June 30th 2014.

Consolidated cash-flow statement, condensed

	2014 2014	2013	2014 2014	2013	Jul. 13-	2013
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun.Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
OPERATING ACTIVITIES
Profit/loss after financial items	576	457	336	181	2,555	2,400
Adjustments for items not included in cash flow	-236	-341	-186	-32	205	359
Taxes paid	-124	-170	-268	-289	-417	-438
Cash flow from operating activities before changes in working
capital	215 215	-54 -54	-118	-140	2,344	2,321
Cash flow from changes in working capital
Divestment of property projects	382	404	995	877	4,288	4,170
Gross investments in property projects	-549	-997	-996	-1,709	-3,176	-3,890
Divestment of housing projects	1,793	1,310	3,046	2,251	7,861	7,067
Gross investments in housing projects	-2,132	-1,947	-4,369	-3,521	-8,760	-7,912
Other changes in working capital	-756	95	-369	293	113	775
Cash flow from changes in working capital	-1,263 -1,263	-1,137 -1,137	-1,693	-1,809	326	211
Cash flow from operating activities	-1,048 -1,048	-1,191 -1,191	-1,811	-1,949	2,670	2,532
INVESTING ACTIVITIES
Sale of building and land	4	1	4	2	11	9
Increase (-) from investing activities	-223	-212	-420	-405	-895	-880
Cash flow from investing activities	-219 -219	-211 -211	-416	-403	-884	-870
CASH FLOW BEFORE FINANCING	-1,267 -1,267	-1,402 -1,402	-2,227	-2,351	1,786	1,661
FINANCING ACTIVITIES
Cash flow from financing activities	-211	812	-149	918	-1,808	-741
CASH FLOW DURING THE PERIOD	-1,477 -1,477	-589 -589	-2,376	-1,434	-22	920
Cash and cash equivalents at beginning of period	2,645	1,781	3,548	2,634	1,198	2,634
Effects of exchange rate changes on cash and cash equivalents	12	7	8	-2	4	-6
CASH AND CASH EQUIVALENTS AT END OF PERIOD	1,180 1,180	1,198 1,198	1,180 1,180	1,198 1,198	1,180	3,548
Short-term investments due later than three months	244	165	244	165	244	143
Total liquid assets	1,424 1,424	1,364 1,364	1,424	1,364	1,424	3,691

NOTES

NOTE 1. ACCOUNTING POLICIES

This interim report has been compiled pursuant to IAS 34 Interim Financial Reporting. The interim report has been prepared in accordance with the 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. Dividend to shareholders will be reported in connection with the Annual General Meeting's resolution and entered as a liability until payment.

From January 1, 2014, IFRS 11 Joint Arrangements has applied, which is a new standard for recognition of joint ventures and joint operations. The new standard entails that joint ventures will be recognized according to the equity method instead of the previous proportional method. However, the proportional method will continue to be applied for joint operations. Since the new standard is expected to have a marginal impact on NCC's financial statements, NCC will not be restating comparative figures for 2013. Other new standards or amended standards applied from January 1, 2014, include IFRS 10 Consolidated Financial Statements, IFRS 12, Disclosures of Interest in Other Entities, amended IAS 27 Separate Financial Statements, amended IAS 28 Investments in Associates and Joint Ventures, amended IAS 32 Financial Instruments: Classification, amended IAS 36 Impairment Losses, as well as amended IAS 39 Financial Instruments. These amendments have no or minor impact on NCC's financial statements.

In other respects, the interim report has been prepared pursuant to the same accounting policies and methods of calculation as the 2013 Annual Report (Note 1, pages 60- 67).

NOTE 2. DEPRECIATION/AMORTIZATION

	2014 2014	2013	2014 2014	2013	Jul. 13-	2013
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun.Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
Other intangible assets	-8	-9	-16	-15	-37	-36
Owner-occupied properties	-6	-6	-12	-12	-26	-26
Machinery and equipment	-162	-159	-313	-305	-649	-641
Total depreciation	-177 -177	-173 -173	-340	-332	-711	-703

NOTE 3. IMPAIRMENT LOSSES AND REVERSED IMPAIRMENT LOSSES

	2014 2014	2013	2014 2014	2013	Jul. 13-	2013
SEK M	Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
Housing projects					-23	-23
Property projects					-2	-2
Owner-occupied properties					7	7
Total impairment expenses	0	0	0	0	-17	-17

Impairment losses in housing projects and property projects are recognized in operation profit/loss.

NOTE 4. SPECIFICATION OF PROPERTY PROJECTS AND HOUSING PROJECTS

	2014 2014	2013	2013
SEK M	Jun. 30 30	Jun. 30	Dec. 31
Properties held for future development	2,070	2,267	2,224
Ongoing property projects	2,380	3,030	1,996
Completed property projects	665	945	1,031
Total property projects	5,115 5,115	6,242 6,242	5,251
Properties held for future development	5,349	5,245	4,865
Capitalized developing costs	1,329	1,306	1,321
Ongoing proprietary housing projects	6,546	5,693	5,303
Unsold completed housing units	1,299	751	1,136
Total housing projects	14,523 14,523	12,996 12,996	12,625

NOTE 5. SPECIFICATION OF NET INDEBTEDNESS

	2014 2014	2013	2013
SEK M	Jun. 30 Jun. 30	Jun. 30	Dec. 31
Long-term interest-bearing receivables	289	216	230
Current interest-bearing receivables	325	242	237
Cash and bank balances	1,180	1,198	3,548
Total interest-bearing receivables, cash and cash equivalents	1,795 1,795	1,656 1,656	4,014
Long-term interest-bearing liabilities	7,336	7,455	7,029
Pensions and similar obligations	356	210	125
Current interest-bearing liabilities	2,863	3,713	2,515
Total interest-bearing liabilities	10,555	11,378	9,670
Net indebtedness	8,760 8,760	2 9,722 9,722	5,656
whereof net debt in ongoing projects in Swedish tenant-owners'
associations and Finnish housing companies
Interest-bearing liabilities	2,151	2,640	1,750
Cash and bank balances	164	109	36
Net indebtedness	1,987	2,531	1,714

NOTE 6. SEGMENT REPORTING

SEK M		NCC Construction
							NCC		Other items
					NCC	NCC	Property	Segment	and
January - June 2014		Sweden Denmark		Finland Norway	Roads	Housing	Development	total	eliminations1)	Group
Net sales, external	8 366	1 391	1 798	2 843	4 255	3 375	1 283	23 311		23 311
Net sales, internal	973	455	1 342	242	234		34	3 279	-3 279
Net sales, total	9 340	1 846	3 140	3 085	4 489	3 375	1 317	26 591	-3 279	23 311
Operating profit	195	116	68	28	-134	202	90	563	-48	515
Net financial items										-178
Profit/loss after financial items										336
		NCC Construction
							NCC		Other items
					NCC	NCC	Property	Segment	and
April - June 2014		Sweden Denmark		Finland Norway	Roads	Housing	Development	total	eliminations 2)	Group
Net sales, external	4 616	725	1 004	1 463	3 079	2 032	562	13 479		13 479
Net sales, internal	529	238	787	124	192		17	1 887	-1 887
Net sales, total	5 145	963	1 790	1 587	3 271	2 032	579	15 367	-1 887	13 479
Operating profit	146	65	41	24	255	156	40	727	-50	677
Net financial items										-102
Profit/loss after financial items										576
		NCC Construction
							NCC		Other items
					NCC	NCC	Property	Segment	and
January - June 2013		Sweden Denmark		Finland Norway	Roads	Housing	Development	total	eliminations1)	Group
Net sales, external	9 014	1 310	1 942	3 187	4 081	2 853	1 233	23 620		23 620
Net sales, internal	1 237	255	1 232	297	260	1	31	3 314	-3 314
Net sales, total	10 251	1 566	3 175	3 484	4 341	2 854	1 264	26 933	-3 314	23 620
Operating profit	202	86	44	-101	-238	107	230	329	-20	309
Net financial items										-128
Profit/loss after financial items										181
		NCC Construction
							NCC		Other items
					NCC	NCC	Property	Segment	and
April - June 2013		Sweden Denmark		Finland Norway	Roads	Housing	Development	total	eliminations 2)	Group
Net sales, external	4 940	687	1 150	1 627	2 971	1 524	638	13 535		13 535
Net sales, internal	653	120	602	154	214	1	18	1 761	-1 761
Net sales, total	5 592	806	1 752	1 780	3 185	1 524	656	15 296	-1 761	13 535
Operating profit	145	47	25	-115	230	45	152	530	-5	526
Net financial items										-69
Profit/loss after financial items										457

1) The figures for the half year include among others NCC´s head office, results from small subsidiaries and associated companies and remaining parts of NCC International Projects, totalling an expense of SEK 34 M (expense: 47). Eliminations of internal profits amount to an expense of SEK 14 M (income: 2) and other Group adjustments, mainly consisting of differences of accounting policy between the segments and the Group (including pensions) amount to an expense of SEK 1 M (income: 25).

2) The quarter includes among others NCC's head office, results from small subsidiaries and associated companies and remaining parts of NCC International Projects, totalling an expense of SEK 29 M (expense: 14). Furthermore elimination of internal profits are included, an expense of SEK 14 M (expense: 7) and other Group adjustments, mainly consisting of differences of accounting policy between the segments and the Group (including pensions), an expense of SEK 8 M (income: 16).

NOTE 7. FAIR VALUE OF FINANCIAL INSTRUMENTS

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

In level 1, measurement is in accordance with prices quoted on an active market for the same instruments. Derivatives in level 2 comprise currency-forward contracts, cross-currency swaps and interest-rate swaps used for hedging purposes. Fair-value measurement for currencyforward contracts and cross-currency swaps is based on published forward rates in an active market. The measurement of interest-rate swaps is based on forward interest rates prepared based on observable yield curves. NCC has no financial instruments in level 3.

SEK M		Jun. 30, 2014 Jun. 30, 2014			Jun. 30, 2013			Dec. 31, 2013
	Level 1	Level 2	Total	Level 1	Level 2	Total	Level 1	Level 2	Total
Financial assets measured at fair value through profit
and loss
Securities held for trading	168		168	21		21	21		21
Derivative instruments		57	57		52	52		93	93
Derivative instruments used for hedge accounting		13	13		16	16		14	14
Total assets	168	70	238	21	68	89	21	107	128
Financial liabilities measured at fair value through profit
and loss
Derivative instruments		135	135		56	56		28	28
Derivative instruments used for hedge accounting		92	92		53	53		67	67
Total liabilities	0	227	227	0	109	109	0	95	95

SEK M	Jun. 30, 2014 2014		Jun. 30, 2013		Dec. 31, 2013
	Carrying	Fair	Carrying	Fair	Carrying	Fair
	amount	value	amount	value	amount	value
Long-term holdings of securities held to maturity	169	172	109	112	108	112
Short-term investments held to maturity	76	77	144	145	122	122
Long-term interest-bearing liabilities	7,336	7,446	7,455	7,487	7,029	7,140
Current interest-bearing liabilities	2,863	2,864	3,713	3,713	2,515	2,517

For financial instruments recognized at amortized cost; accounts receivables, other receivables, cash and cash equivalents, accounts payable and other interest-free liabilities, the fair value is deemed to agree with the carrying amount.

NOTE 8. OFFSETTING FINANCIAL INSTRUMENTS

NCC has binding netting arrangements (ISDA agreements) with all counterparties for derivative trading, whereby NCC can offset receivables and liabilities should a counterparty become insolvent or in another event. The following table sets out the gross financial assets and liabilities recognized and the amounts available for offsetting.

SEK M	Jun. 30, 2014 Jun. 2014		Jun. 30, 2013		Dec. 31, 2013
	Financial	Financial	Financial	Financial	Financial	Financial
	assets	liabilities	assets	liabilities	assets	liabilities
Recognized gross amount	70	227	68	109	107	95
Amounts included in an offset agreement	-61	-61	-40	-40	-61	-61
Net amount after offset agreement	9	166	28	69	46	34

Parent Company

MOST RECENT QUARTER, APRIL – JUNE 2014

Invoicing for the Parent Company amounted to SEK 6,370 M (6,756). Profit after financial items totaled SEK 331 M (58). Earnings increased mainly from housing projects recognized in profit. In the Parent Company, profit is recognized when projects are completed.

INTERIM PERIOD, JANUARY – JUNE 2014

Invoicing for the Parent Company amounted to SEK 12,254 M (13,380). Profit after financial items totaled SEK 1,178 M (1,255). Higher results from projects recognized in profit were offset by lower dividends from subsidiaries. In the Parent Company, profit is recognized when projects are completed.

The average number of employees was 5,953 (6,131).

Parent Company income statement

		2014 2014	2013	2014 2014	2013	Jul. 13-	2013
SEK M	Note 1	Apr.-Jun. Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
Net sales		6,370	6,756	12,254	13,380	22,231	23,357
Production costs		-5,704	-6,321	-11,121	-12,418	-20,044	-21,341
Gross profit		666 666	436 436	1,133	962	2,187	2,016
Selling and administrative expenses		-376	-397	-729	-787	-1,406	-1,464
Operating profit		290	39	404	175	782	553
Result from financial investment
Result from participations in Group companies		101	77	880	1,138	1,049	1,308
Result from participations in associated companies		-3				-2	-2
Result from financial current assets		27	37	58	72	110	124
Interest expense and similar items		-83	-94	-164	-130	-294	-260
Result after financial items		331	58	1,178	1,255	1,645	1,723
Appropriations						672	672
Tax on net profit for the period		-85	-15	-37	-11	-266	-240
Net profit for the period		246	43	1,142	1,245	2,051	2,155

Parent Company statement of comprehensive income

		2014 2014	2013	2014 2014	2013	Jul. 13-	2013
SEK M	Note 1	Apr.-Jun. Apr.-Jun. Apr.-Jun.	Apr.-Jun.	Jan.-Jun. Jan.-Jun.	Jan.-Jun.	Jun. 14	Jan.-Dec.
Net profit for the period		246	43	1,142	1,245	2,051	2,155
Total comprehensive income during the year		246	43	1,142	1,245	2,051	2,155

Parent Company balance sheet, condensed

		2014 2014	2013	2013
SEK M	Note 1	Jun. 30 30	Jun. 30	Dec. 31
ASSETS
Intangible fixed assets		120	67	75
Total intangible fixed assets		120	67	75
Tangible fixed assets		89	107	91
Financial fixed assets		6,465	6,560	6,624
Total fixed assets		6,674 6,674	6,735 6,735	6,790
Housing projects		351	258	505
Materials and inventories		51	34	52
Current receivables		5,101	4,832	5,822
Short term investments		7,300	6,850	7,100
Cash and bank balances		929	1,188	705
Total current assets		13,732 13,732	13,161 13,161	14,184
TOTAL ASSETS		20,405 20,405	19,895 19,895	20,974
SHAREHOLDERS´ EQUITY AND LIABILITIES
Shareholders´ equity		7,278	6,516	7,432
Untaxed reserves		392	739	392
Provisions		603	757	688
Long term liabilities		2,774	2,691	2,571
Current liabilities		9,358	9,193	9,891
TOTAL SHAREHOLDERS´ EQUITY AND LIABILITIES		20,406 20,406	19,895 19,895	20,974
Contingent liabilities		26,147 26,147	22,600 22,600	23,017

Notes to the Parent Company's income statement and balance sheet

NOTE 1. ACCOUNTING POLICIES

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 has been prepared in accordance with the same accounting policies and methods of calculation as the 2013 Annual Report (Note 1, pages 60-67).

Significant risks and uncertainties

GROUP

An account of the risks to which NCC may be exposed is presented in the 2013 Annual Report (pages 46-48). This description remains relevant.

PARENT COMPANY

Significant risks and uncertainties for the Parent Company are identical to those of the Group.

Related-party transactions

The companies related to the Parent Company are the Nordstjernan Group, the Axel Johnson Group, the FastPartner Group and NCC's subsidiaries, associated companies and joint ventures. The Parent Company's related-party transactions were of a production character. Related-company sales during the April-June quarter amounted to SEK 5 M (4) and purchases to SEK 99 M (104). For the January-June interim period, sales amounted to SEK 6 M (6) and purchases to SEK 191 M (225). The transactions were conducted on normal market terms.

Information to shareholders

REPURCHASE OF SHARES

NCC AB holds 592,500 Series B treasury shares to meet its obligations pursuant to LTI 2012 and LTI 2013.

Other significant events

DIVIDEND

NCC's Annual General Meeting on April 2, 2014 resolved to pay a dividend of SEK 12.00 (10.00) per share to shareholders for the 2013 fiscal year, distributed in two payments. SEK 6.00 was paid to shareholders on April 10, 2014 and SEK 6.00 is to be paid on October 31, 2014, with October 28, 2014 as the record date. This corresponds to a total dividend payment of SEK 1,294 M, calculated on the number of shares outstanding on June 30, 2014. The total dividend amount reduced shareholders' equity as of June 30, 2014.

MAJOR ORDERS IN THE QUARTER

NCC was commissioned by the Swedish Transport Administration to expand the Svealandsbanan railway line with double tracks on the Strängnäs-Härad section. The order is valued at SEK 975 M.

NCC received a construction contract in Aarhus in Denmark valued at SEK 725 M. Inspired by the Dutch Packhus design, NCC in Denmark will be constructing a new, large rental apartment building area, Havneholmen, in three phases in Aarhus harbor.

NCC was commissioned to conduct earthworks, civil engineering and construction work in connection with the expansion of the Södra Cell Värö mill. The client is Södra Cell AB and the order is worth in excess of SEK 500 M.

NCC received a contract from Finlands Universitetsfastigheter AB to build premises for medical research and education for the University of Tampere in Finland. The project is valued at SEK 430 M.

MAJOR PROPERTY SALES IN THE QUARTER

NCC sold an office property on Skånegatan 1-3 close to Ullevi in Gothenburg for SEK 860 M to Vasakronan AB. NCC sold an office property in Mölndal to Stena Fastigheter for SEK 868 M. The property has been fully leased to SCA.

NCC sold a housing project with 180 apartments in Potsdam in Germany to the Industria Wohnen investment company. The transaction is worth SEK 321 M.

Events after the end of the quarter

NCC sold Vallensbæk Company House III, an office project close to Copenhagen, for SEK 195 M to the Danish PKA pension fund.

Reporting occasions in 2014

Interim report, Jan.-Sep. 2014	October 24, 2014
Year-end report 2014	January 27, 2014

Signatures

Solna, July 18, 2014

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.

Tomas Billing Chairman of the Board Viveca Ax:son Johnson Board member

Carina Edblad Board member

Ulla Litzén Board member

Olof Johansson Board member

Sven-Olof Johansson Board member

Christoph Vitzthum Board member

Karl-Johan Andersson Board member Employee representative

Lars Bergqvist Board member Employee representative

Karl G Sivertsson Board member Employee representative

Peter Wågström President and CEO

This report is unaudited.

Reporting by geographical market

January - June

January - June	Average numbers
	Orders received		Order backlog		Net sales		EBIT		of employees		Capital employed
SEK M SEK M	2014	2013	2014	2013	2014	2013	2014	2013	2014	2013	2014	201 3
Sweden	16,687	13,248	26,322	24,230	11,798	12,438	368	330	8,276	8,528	7,360	8,887
Denmark	3,862	4,363	7,939	5,838	2,816	2,470	47	35	2,040	2,048	4,133	3,779
Finland	2,879	3,944	6,838	7,509	3,658	3,440	51	37	2,619	2,789	3,093	3,086
Norway	4,196	5,607	8,588	9,100	4,037	4,603	-7	-73	2,428	2,304	3,801	3,751
Germany	1,510	1,690	4,322	3,673	569	500	4	-15	711	672	1,312	1,055
St. Petersburg	1,314	498	2,560	1,572	371	121	55	-14	396	353	1,295	782
The Baltic countries	80	124	110	157	62	47	-2	0	14	12	485	531

The Baltic Construction units are reported by Construction Finland

Quarterly review

	2014	2014	2013	2013	2013	2013	2012	2012	2012
							Apr.-Jun. Jan.-Mar. Oct.-Dec. Jul.-Sep. Apr.-Jun. Jan.-Mar. Oct.-Dec. Jul.-Sep. Apr.-Jun.
Financial statements, SEK M
Net sales	13,479	9,832	21,073	13,129	13,535	10,084	19,069	13,765	13,733
Operating profit/loss	677	-162	1,547	823	526	-217	1,332	814	512
Profit/loss after net financial items	576	-239	1,472	748	457	-276	1,258	742	451
Profit/loss for the period	447	-185	1,229	611	362	-215	1,127	569	343
Cash flow, SEK M
Cash flow from operating activities	-1,048	-763	4,523	-43	-1,191	-758	3,248	-245	-1,928
Cash flow from investing activities	-219	-197	-283	-185	-211	-192	-267	-247	-251
Cash flow before financing	-1,267	-960	4,240	-227	-1,402	-950	2,981	-492	-2,179
Cash flow from financing activities	-211	61	-2,118	460	812	105	-1,454	476	2,046
Net debt	8,760	6,572	5,656	9,893	9,722	7,250	6,467	9,430	8,979
Order status, SEK M
Orders received	17,303	13,223	14,363	13,142	17,798	11,675	15,423	13,160	15,453
Order backlog	56,657	50,798	47,638	51,065	52,079	46,917	45,833	48,548	49,116
Personnel
Average number of employees	16,489	15,245	18,360	17,274	16,706	15,861	18,175	17,950	16,844

Summary of key figures

Jul. 13- Jul. 12-5) 20125) 2014 2013 2013 2012 2011 2010 Apr.-Jun. Apr.-Jun. Jun. 14 Jun. 13 Jan.-Dec. Jan.-Dec. Jan.-Dec. Jan.-Dec. Jan.-Dec. Profitability ratios Return on shareholders equity, % 1) 27 27 27 27 26 28 23 20 17 Return on capital employed, % 1) 16 14 16 14 15 17 15 19 16 Financial ratios at period-end Interest-coverage ratio, % 1) 7.4 7.1 7.4 7.1 7.8 7.5 7.0 7.4 6.9 Equity/asset ratio, % 19 17 19 17 22 20 23 25 26 Interest bearing liabilities/total assets, % 26 29 26 29 25 26 24 17 14 Net debt, SEK M 8,760 9,722 8,760 9,722 5,656 6,467 6,061 3,960 431 Debt/equity ratio, times 1.2 1.4 1.2 1.4 0.7 0.8 0.7 0.5 0.1 Capital employed at period end, SEK M 18,056 18,133 18,056 18,133 18,345 17,285 18,241 13,739 12,390 Capital employed, average 1) 18,402 17,344 18,402 17,344 18,005 15,755 16,632 13,101 12,033 Capital turnover rate, times1) 3.1 3.3 3.1 3.3 3.2 3.6 3.4 4.0 4.1 Share of risk-bearing capital, % 19 18 19 18 23 21 25 27 28 Average interest rate, % 3) 3.2 3.1 3.2 3.1 3.3 3.6 3.6 4.2 4.6 Average period of fixed interest, years 3) 1.1 0.9 1.1 0.9 1.2 1.1 1.1 0.8 1.5 Average interest rate, % 4) 2.4 2.6 2.4 2.6 2.7 2.4 2.4 2.7 2.3 Average period of fixed interest, years 4) 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Per share data Profit/loss after tax, before dilution, SEK 4.14 3.35 19.49 17.04 18.40 17.62 17.51 12.08 14.05 Profit/loss after tax, after dilution, SEK 4.14 3.35 19.49 17.04 18.40 17.62 17.51 12.08 14.05 Cash flow from operating activities, before dilution, SEK -9.71 -11.04 24.76 9.76 23.46 -0.24 -0.24 -14.27 22.35 Cash flow from operating activities, after dilution, SEK -11.74 -12.99 16.56 1.27 15.40 -8.61 -8.61 -22.17 17.84 P/E ratio 1) 12 9 12 9 11 8 8 10 11 Dividend, ordinary, SEK 12.00 10.00 10.00 10.00 10.00 Dividend yield, % 5.7 7.3 7.3 8.3 6.8 Shareholders' equity before dilution, SEK 69.37 62.47 69.37 62.47 80.24 70.58 82.97 76.41 74.81 Shareholders' equity after dilution, SEK 69.37 62.47 69.37 62.47 80.24 70.58 82.97 76.41 74.80 Share price/shareholders' equity, % 332 244 332 244 262 193 164 158 198 Share price at period-end, NCC B, SEK 230.10 152.60 230.10 152.60 209.90 136.20 136.20 121.00 147.80 Number of shares, millions Total number of issued shares2) 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 108.4 Treasury shares at period-end 0.6 0.6 0.6 0.6 0.6 0.4 0.4 0.0 0.0
Total number of shares outstanding at period-end before dilution 107.8 107.8 107.8 107.8 107.8 108.0 108.0 108.4 108.4
Average number of shares outstanding before dilution during the period 107.8 107.9 107.8 107.9 107.9 108.2 108.2 108.4 108.4
Market capitalization before dilution, SEK M 24,796 16,647 24,796 16,647 22,625 14,706 14,706 13,136 16,005
20127) 20093) 20083) Financial objectives and dividend 2014 2013 2012 2011 2010 2009
Return on shareholders equity, % 4) 18 26 28 23 17 20 25 27
Debt/equity ratio, times 5) 0.1 0.7 0.8 0.7 0.5 0.1 0.5 0.5
6.00 Dividend, ordinary, SEK 12.00 10,00 10.00 10.00 10.00 6.00 4.00

1) Calculations are based on a 12 month average.

2) All shares issued by NCC are common shares.

3) Excluding liabilities pertaining to Swedish tenant-owners' associations and Finnish housing companies and pensions obligations in accordance with IAS 19

4) Liabilities pertaining to Swedish tenant-owners' association and Finnish housing companies.

5) The amounts are adjusted for change in accounting policy regarding IAS 19.

For definitions of key figuers, see p. 26 and Annual Report 2013, p. 113.

NCC in brief

VISION

NCC's vision is to renew our industry and provide superior sustainable solutions.

BUSINESS CONCEPT – RESPONSIBLE ENTERPRISE NCC develops and builds future environments for working, living and communication. Supported by its values, NCC and its customers jointly identify needsbased, cost-effective and high-quality solutions that generate added value for all of NCC's stakeholders and contribute to sustainable social development.

OBJECTIVE

NCC's overriding objective is to create value for its customers and shareholders. NCC aims to be a leading player in the markets in which it is active, to offer sustainable solutions and to be the customer's first choice.

FINANCIAL OBJECTIVES AND DIVIDEND POLICY

NCC aims to generate a healthy return to shareholders under financial stability. The return on equity after tax shall amount to 20 percent. The level for the return target is based on the margins that the various parts of the Group are expected to generate on a sustainable basis, and on capital requirements in relation to the prevailing business focus.

To ensure that the return target is not reached by taking financial risks, net indebtedness, defined as interestbearing liabilities less cash and cash equivalents and interest-bearing receivables, must never exceed 1.5 times shareholders' equity during any given quarter.

NCC's dividend policy is to distribute at least half of aftertax profit for the year to the shareholders. The aim of the policy is to generate a healthy return for NCC's shareholders and to provide NCC with the potential to invest in its operations and thus ensure that future growth can be created while maintaining financial stability.

ORGANIZATION

NCC conducts integrated construction and development operations in the Nordic region, Germany, Estonia, Latvia and St. Petersburg. The company has three businesses: industrial, construction and civil engineering, as well as development. These businesses generate both operational and financial synergies. The company's operations are organized in seven business areas.

STRATEGY 2012–2015

NCC aims to achieve profitable growth and be a leading player in the markets in which it is active. Being a leading player entails being among the top three companies in the industry in terms of profitability and volume. Three markets and areas are prioritized: growth in Norway in all business areas, establishing a presence in the civil engineering market in Finland and expansion of the housing development business in all markets. Growth targets have been established for NCC's various operations during the strategy period.

NCC AB
Construction and civil engineering					Industrial Development
NCC NCC Construction Construction Sweden Denmark		NCC Construction Finland	NCC Construction Norway		NCC Roads	NCC Housing	NCC Property Development
		Finland Estonia Latvia S:t Petersburg			Sweden Denmark Finland Norway S:t Petersburg	Sweden Denmark Finland Norway Germany Estonia Latvia S:t Petersburg	Sweden Denmark Finland Norway Estonia Latvia

Contact information

Chief Financial Officer Ann-Sofie Danielsson Tel. +46 (0)70-674 07 20

Senior Vice President Corporate Communications Ann Lindell Saeby Tel. +46 (0)76-899 98 48

Investor Relations Manager Johan Bergman Tel. +46 (0)8-585 523 53, +46 (0)70-354 80 35

Information meeting

An information meeting with integrated Internet and telephone conference will be held on July 18 at 12:00 noon at Tändstickspalatset, Västra Trädgårdsgatan 15 in Stockholm. The presentation will be held in English. To participate in this teleconference, call +46 (0)8-519 993 55 (SE), +44 203194 05 50 (UK) or +1 855 269 26 05 (US), five minutes prior to the start of the conference. State "NCC".

In its capacity as issuer, NCC AB is releasing the information in this interim report pursuant to Chapter 17 of the Swedish Securities Market Act (2007:528). The information was distributed to the media for publication on Friday July 18, at 8:00 a.m.

Definitioner

INDUSTRY-SPECIFIC GLOSSARY

Construction costs: The cost of constructing a building, including building accessories, utility-connection fees, other contractor-related costs and VAT. Construction costs do not include the cost of land.

Required yield: The yield required by purchasers in connection with acquisitions of property and housing projects. Operating revenue less operating and maintenance expenses divided by the investment value, also called yield.

Proprietary project: When NCC, for its own development purposes, acquires land, designs a project, conducts construction work and then sells the project. Pertains to both housing projects and commercial property projects.

Leasing rate: The percentage of anticipated rental revenues that corresponds to signed leases (also called leasing rate based on revenues).

FINANCIAL KEY FIGURES

Return on equity: Net profit for the year according to the income statement excluding non-controlling interests, as a percentage of average shareholders' equity.

Return on capital employed: Profit after financial items including results from participations in associated companies following the reversal of interest expense in relation to average capital employed.

Dividend yield: The dividend as a percentage of the market price at year-end.

Net indebtedness: Interest-bearing liabilities and provisions less financial assets including cash and cash equivalents.

Net sales: The net sales of construction operations are recognized in accordance with the percentage-ofcompletion principle. These revenues are recognized in pace with the gradual completion of construction projects within the company. For NCC Housing, net sales are recognized when the housing unit is transferred to the end customer. Property sales are recognized on the date on which significant risks and benefits are transferred to the buyer, which normally coincides with the transfer of ownership. In the Parent Company, net sales correspond to recognized sales from completed projects.

Orders received: Value of received projects and changes in existing projects during the period concerned. Proprietary projects for sale, if a decision to initiate the assignment has been taken, are also included among assignments received, as are finished properties included in inventory.

Order backlog: Period-end value of the remaining nonworked-up project revenues for projects received, including proprietary projects for sale that have not been completed.

Capital employed: Total assets less interest-free liabilities including deferred tax liabilities. Average capital employed is calculated as the average of the balances per quarter.

Rounding-off differences may arise in all tables.