Sweco

Earnings Release • Jul 15, 2022

15 July 2022

Solid organic growth

April–June 2022

• Net sales increased to SEK 6,116 million (5,643)
• EBITA amounted to SEK 486 million (529), margin 7.9 per cent (9.4)
• EBITA increased 0.4 per cent year-on-year after adjustment for calendar effects
• EBIT increased to SEK 535 million (509), margin 8.8 per cent (9.0)
• Profit after tax increased to SEK 409 million (379), corresponding to SEK 1.14 per share (1.06)

January–June 2022

• Net sales increased to SEK 12,193 million (11,181)
• EBITA increased to SEK 1,134 million (1,070), margin 9.3 per cent (9.6)
• EBITA increased 1 per cent year-on-year after adjustment for calendar effects
• EBIT increased to SEK 1,165 million (1,032), margin 9.6 per cent (9.2)
• Net debt/EBITDA decreased to 0.9 x (1.0)
• Net debt amounted to SEK 2,014 million (1,942)
• Profit after tax increased to SEK 872 million (771), corresponding to SEK 2.44 per share (2.17)

CEO comment

Solid organic growth driven by transitional trends in society

Demand for Sweco's services remains strong, driven by the accelerating sustainable transformation across our customer segments and business areas.

In the second quarter, we reported organic growth of 5 per cent, adjusted for calendar effects. Organic growth was supported by increased average fees and a positive momentum in recruitment, with a net addition of close to 400 new experts. EBITA improved slightly, adjusted for a significant negative calendar effect.

We continued to strengthen our order book, positioning Sweco as an expert in complex, transformational projects. We noted increased demand from clients in the industry, energy and infrastructure segments.

The second quarter was also the starting point for several exciting projects. One such project is the assignment to support the Swedish battery manufacturer Northvolt in planning the conversion of a paper mill in Sweden into a new giga factory, with a strong focus on energy transition and circularity. Another example is our work for BASF, the world's largest chemical company that has chosen Sweco as a partner in Belgium for the rebuilding and conversion of a laboratory building into a sustainable office building. These are two good examples of how we support our clients in sustainable transformation of industries.

Organic growth in all business areas

Net sales increased 8 per cent to SEK 6,116 million (5,643) in the second quarter, with organic growth of 5 per cent, adjusted for calendar effects. EBITA amounted to SEK 486 million (529), resulting in an EBITA margin of 7.9 per cent (9.4). Adjusted for calendar effects, EBITA increased 0.4 per cent. Higher average fees, a higher number of employees and acquisitions had positive impact on EBITA while higher operating expenses compared to the levels during the pandemic, as well as a lower billing ratio in some of our business areas had a negative impact. Higher absence, primarily linked to Covid-19, also impacted negatively.

All business areas reported organic growth, while four out of eight business areas reported EBITA improvements in the quarter.

Belgium and Sweden continued to deliver strong margins close to our margin target and Germany and Central Europe as well as the UK showed significant EBITA improvements.

Norway had strong underlying organic growth and an improved EBITA, but was impacted by a negative calendar effect related to the Easter holidays.

Our financial position remains strong, allowing us to act on opportunities in the market.

New acquisition enables leading position in Norway

On 3 May, we announced the acquisition of the Norwegian architecture firm Arcasa Arkitekter, with 70 employees and annual sales of SEK 130 million. Arcasa has leading expertise in residential development. Together with our previous acquisition of TAG Arkitekter in the autumn of 2020, we have built a strong platform in the Norwegian architecture market and a truly integrated engineering and architecture offering in line with Sweco's strategy. With the acquisition of Arcasa Arkitekter, Sweco becomes the largest player in residential architecture in Norway and number three overall in the Norwegian architecture market.

Well-positioned for long-term trends

The market situation remains fragmented. On the one hand, we have lingering effects from the pandemic and Russia's invasion of Ukraine, resulting in challenges in supply chains and cross-border trade, as well as increasing inflation and costs. On the other hand, we have the long-term sustainable transformation that generates increasing investment needs in many of Sweco's core segments. Despite the short-term market uncertainties, I feel confident that Sweco is wellpositioned to benefit from the mid-term and long-term trends. Our focus is to continue to work closely together with our clients and to be the partner of choice in the ongoing transformation of society.

Åsa Bergman President and CEO

Europe's leading architecture and engineering consultancy

Urbanisation, digitalisation and sustainability are transforming society. Together with our clients, we are committed to ensuring that we have clean water, clean air, clean energy and a physical environment where we all can live, work and prosper. With more than 18,500 experts in Europe, Sweco has the knowledge to solve the most challenging projects, no matter size or location.

Key figures

#1 In the European market	8 Business Areas	18,500 Full-time employees
SEK 22.8 bn Net sales R12	SEK 2.1 bn EBITA R12	9.1% EBITA margin R12

Group performance

Organic growth amounted to approximately 5 per cent after adjustment for calendar effects. Acquired growth amounted to 2 per cent. EBITA increased slightly year-onyear after adjustment for calendar effects.

April–June

Net sales increased 8 per cent to SEK 6,116 million (5,643). Organic growth amounted to approximately 5 per cent after adjustment for calendar effects. Acquired growth amounted to 2 per cent and currency effects were 2 per cent.

Organic growth adjusted for calendar effects was driven mainly by higher average fees and a higher number of employees, while higher absence and a lower billing ratio impacted negatively.

EBITA amounted to SEK 486 million (529). The EBITA margin amounted to 7.9 per cent (9.4).

EBITA increased approximately 0.4 per cent corresponding to SEK 2 million year-on-year after adjustment for calendar effects. Germany & Central Europe, the UK, Belgium and Norway noted increasing EBITA levels. EBITA was impacted by lower earnings in Sweden, the Netherlands, Finland and Denmark. Overall for the Group, EBITA was positively affected by higher average fees and a higher number of employees, while higher operating expenses, higher absence and a lower billing ratio had a negative impact. The negative EBITA impact of higher sickness absence compared with last year was approximately SEK 30 million. The contribution from acquisitions had a positive impact. Compared with the second quarter last year, the

advantage of lower costs, mainly related to effects of Covid-19, has been reversed.

The quarter had five fewer working hours compared with the same period last year. This corresponded to a negative year-on-year impact of approximately SEK 45 million on net sales and EBITA.

The billing ratio decreased to 74.3 per cent (75.0).

Total net financial items remained unchanged at SEK -20 million (-20) as a reduction in the interest net was balanced by positive revaluation effects related to foreign exchange.

Earnings per share increased to SEK 1.14 (1.06).

KPIs	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021	Jul 2021– Jun 2022	Full-year 2021
Net sales, SEK M	6,116	5,643	12,193	11,181	22,804	21,792
Organic growth, %	4	2	4	0		3
Acquisition-related growth, %	2	2	2	2		3
Currency, %	2	-2	3	-3		-1
Total growth, %	8	3	9	0		4
Organic growth adj. for calendar, %	5	1	4	1		3
Organic growth adj. for calendar & IAC, %	5	1	4	1		2
EBITA excl. IAC, SEK M1	486	529	1,134	1,070	2,134	2,070
Margin,%	7.9	9.4	9.3	9.6	9.4	9.5
EBITA, SEK M1	486	529	1,134	1,070	2,078	2,014
Margin, %	7.9	9.4	9.3	9.6	9.1	9.2
Profit after tax, SEK M	409	379	872	771	1,592	1,492
Earnings per share, SEK	1.14	1.06	2.44	2.17	4.46	4.18
Number of full-time employees	18,626	17,904	18,439	17,764	18,132	17,802
Billing ratio, %	74.3	75.0	73.9	74.3	73.9	74.1
Normal working hours	468	473	965	960	1,978	1,973
Net debt/EBITDA, x2			0.9	1.0		0.4

1) EBITA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITA. For further information, see pages 18 and 21. IAC stands for Items affecting comparability, see definition on page 18.

2) Net debt/EBITDA is an alternative performance measure (APM). Net debt is an alternative performance measure (APM) defined as financial debt (comprised almost exclusively of interest-bearing bank debt) less cash and cash equivalents and short-term investments. Lease liabilities are excluded from Net debt. EBITDA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes, Depreciation & amortisation and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITDA. For further information, see pages 18 and 28.

January–June

Net sales increased 9 per cent to SEK 12,193 million (11,181). Organic growth amounted to approximately 4 per cent after adjustment for calendar effects. Acquired growth amounted to 2 per cent and currency effects impacted growth with 3 per cent.

Organic growth adjusted for calendar effects was driven mainly by higher average fees and a higher number of employees, while higher absence and a lower billing ratio impacted negatively.

EBITA increased to SEK 1,134 million (1,070). The EBITA margin decreased to 9.3 per cent (9.6).

EBITA increased approximately 1 per cent or SEK 10 million year-on-year after adjustment for calendar effects. Germany & Central Europe, Norway, Belgium, the UK and Denmark noted increasing EBITA levels. The other business areas reported lower earnings. Overall for the Group, the EBITA increase was primarily driven by higher average fees and a higher number of employees, while higher operating expenses, higher absence and lower billing ratio had a negative impact.

The calendar effect of five more hours had a positive year-on-year impact of approximately SEK 54 million on net sales and EBITA.

The billing ratio decreased to 73.9 per cent (74.3).

Total net financial items reduced to SEK -41 million (-38) primarily due to negative revaluation effects related to foreign exchange and higher financial fees. Lower interest cost of leasing had a positive impact.

Earnings per share increased to SEK 2.44 (2.17).

Employees

The number of full-time employees amounted to 18,439 (17,764) in the period.

Net sales by quarter and rolling 12 months

EBITA by quarter and rolling 12 months

Market

Overall, the underlying market for Sweco's services was good in the second quarter. Apart from the effects of high sickness absence, the Covid-19 impact on the market was limited. Essentially all Business Areas experienced good demand for Sweco's services in the infrastructure, water, environment, energy and industry segments. Demand for services in parts of the building and real estate segment remained slightly weaker. The Russian invasion of Ukraine has created significant uncertainty in the market, but had relatively limited real impact on total demand in the second quarter.

Outlook

With the uncertainty of the Covid-19 impact diminishing, Russia's invasion of Ukraine has created significant uncertainty regarding future market development. The impact on the general economy and Sweco's markets from material shortages, general inflationary pressure as well as energy supply and pricing is uncertain. At a minimum, it is likely to have a short-term negative impact on Sweco's markets, but could also drive increased demand in some segments. Overall demand for Sweco's services normally follows the general macroeconomic trend, with some time lag.

Sweco does not provide forecasts.

Events during the quarter

On 2 May, Sweco completed the acquistion of the Norwegian consultancy Stema Rådgivning. The acquisition strengthens Sweco's position in Norway, in project and construction management. Stema was founded in 2001 and consists of approximately 90 employees, as well as a larger number of associated consultants. The acquisition also includes the subsidiary Byggeråd. Combined, the companies have annual sales of SEK 186 million. The acquisition was consolidated into Sweco Norway as of May.

On 31 May, Sweco completed the acquisition of Arcasa Arkitekter in Norway. The acquisition makes Sweco a leading player in architectural services and the largest in residential architecture in the Norwegian market. Arcasa has its primary operations within sustainable residential development, with 70 employees and annual sales of SEK 130 million. The acquisition was consolidated into Sweco Norway as of June.

On 16 May, Sam Saatchi took on the role as Chief Strategy Officer and joined Sweco's Executive Team.

On 18 May, Sweco announced that Rasmus Nord will take up the position as new Business Area President for Sweco Norway as of 15 August. He will by this also become a member of Sweco's Executive Team.

Cash flow and financial position

Group cash flow from operating activities totalled SEK 739 million (579) for the first half of the year. Net debt increased slightly to SEK 2,014 million (1,942), with increased cash flow from operations not fully balancing increased outflows for acquisitions and dividends.

Net debt/EBITDA, x

The Net debt/EBITDA ratio was 0.9 x (1.0).

Available cash and cash equivalents, including unutilised credit lines, totalled SEK 3,250 million (2,919) at the end of the quarter.

Purchase considerations paid to acquire companies and operations totalled SEK 485 million (290) and had an impact of SEK -444 million (-287) on the Group's cash and cash equivalents. Purchase considerations received on the divestments of companies and operations had an impact of SEK 69 million (-1) on the Group's cash and cash equivalents.

No repurchases of Sweco shares were made during the period or during the same period last year.

Investments, January–June 2022

Investments in equipment totalled SEK 118 million (93) and were primarily attributable to IT investments. Depreciation of equipment amounted to SEK 106 million (110) and amortisation of intangible assets totalled SEK 67 million (75).

Examples of new projects

Sustainable transport and infrastructure

Sweco has been tasked by the Swedish Transport Administration with the project planning for two sections of the North Bothnia Line railway. The North Bothnia Line in Sweden, totals 270 km of new railway along the Norrland coast. Sweco's assignment includes two sections along this line – a total of 33 kilometers. The assignment sets stringent requirements in terms of expert competence in permit management, constructability, sustainability and innovative solutions. The contracts have a total value of around SEK 200 million.

Allego, the leading European charging station company is installing charging infrastructure at 14 Park and ride car parks along major roads in Belgium. This project is contributing to the creation of a solid network of highperformance charging solutions throughout the country. Allego has assigned Sweco to prepare an environmental permit application for each location, and take care of its submission, including preparatory work such as topographical measurements. The contract amounts to SEK 1 million.

Drone aviation is a unique niche in which Belgium holds a strong position. Limburgse Reconversie Maatschappij (LRM), an investment company that develops and stimulates economic growth, has assigned Sweco to support with a spatial-economic business plan and strategy for how the former air force base in Brustem can be exploited to become Belgium's first drone cargo airport. The contract with LRM amounts to SEK 3 million.

The Kiel Canal in Germany is the world's most frequented artificial waterway and The first Levensau High Bridge – a combined pedestrian, road and railway bridge – is the oldest

bridge structure on the canal. It is also one of the biggest bottlenecks for shipping. The capacity will now be increased by replacing The Levensau High Bridge with a new bridge that will improve safety and significantly reduce canal passage times, especially for larger ships. Sweco will support Kiel Canal Construction Authority in parts of the construction and thus make an important contribution to shifting goods to environmentally friendly waterways.

Water management

Sweco has been assigned to support with the upgrading of sludge management at the Modřice waste water treatment plant in the city of Brno, Czech Republic, for a capacity of 640,000 PE (population equivalents). To date, this is the most extensive so called BIM project (Building Information Modelling) in the Czech Republic in the field of water management. The contract value amounts to SEK 30 million.

Hoogheemraadschap (Water Board) Hollands Noorderkwartier is a governmental organisation that works on dikes and clean surface water. To ensure that dikes in the Netherlands can withstand the consequences of climate change, their safety is assessed on a regular basis. This also applies to the dike around Monnickendam where Sweco has been assigned to further investigate the Monnickendam Zeedijk dike section and to carry out the so-called exploration phase of the dike improvement. The contract value amounts to approximately SEK 10 million.

Circularity

Aurubis Olen, Europes largest copper producer and a world leader in copper recycling has assigned Sweco to provide basic engineering and procurement services for a new bleed treatment facility that will enable recycling of copper and nickel. During the electrochemical refining process of copper, impurities like nickel are built up in the process liquid (electrolyte). The new energy-efficient hydrometallurgical process will increase the recycling capacity of the important industrial metals nickel and copper, thereby contributing to the European circular economy. The contract fee amounts to SEK 11 million.

Sweco has been commissioned by Northvolt to assist in the conversion of Kvarnsveden paper mill in Borlänge, Sweden into a gigafactory. The reconstruction will be characterised by circularity, with the aim being that everything being demolished will be reused. Accordingly, two main buildings and as much as possible of the existing infrastructure will be retained. The latest technologies for recycling steel and concrete will be used. Within the framework of the plant's master plan, Sweco will develop a plan for logistics solutions and provide technical assistance. Sweco will also prepare the permit application for the plant.

BASF, the world's largest chemical company has chosen Sweco as partner for the rebuilding and conversion of a laboratory building into a sustainable office building on the BASF site in Antwerp, Belgium. Sweco will be

supporting on several stages of an efficient building renovation programme, i.e architecture, structural engineering, technical installations, energy performance and indoor climate, acoustics and BIM. The contract fee amounts to SEK 6 million.

Social sustainability

TietgenCity School is a new 4-storey 8,200 sqm campus by the Port of Odense Municipality in Denmark. The project is part of Odense's ambition to become Denmark's greenest city and will therefore be certified to DGNB Gold1). The vision is to create a dynamic and open learning environment by creating good environments to promote well-being, community and individual needs, as well as creating a flexible framework for teaching and varying study environments. Sweco has been appointed as engineering consultant for all engineering disciplines and as DGNB auditor, Sweco is responsible for the implementation of environmental, social and economic sustainability aspects in the construction.

¹⁾ The German Sustainable Building Council (DGNB) is a third-party verified green building rating system.

Drone aviation is a unique niche in which Belgium holds a strong position. Limburgse Reconversie Maatschappij (LRM) has assigned Sweco to support with a spatialeconomic business plan and strategy for how the former air force base in Brustem can be exploited to become Belgium's first drone cargo airport.

The Kiel Canal in Germany is the world's most frequented artificial waterway and the first Levensau High Bridge – a combined pedestrian, road and railway bridge – is the oldest bridge structure on the canal. It is also one of the biggest bottlenecks for shipping. The capacity will now be increased by replacing the Levensau High Bridge with a one. Sweco will support Kiel Canal Construction Authority in parts of the construction and thus make an important contribution to shifting goods to environmentally friendly waterways.

Business Area Overview

Sweco's Business Areas are Sweden, Norway, Finland, Denmark, the Netherlands, Belgium, the UK and Germany and Central Europe.

eight Business Areas where Sweco holds wellestablished positions and it is primarily here that we will grow in the future. These markets are economically and politically stable, while also being close to each other geographically and culturally.

Sweco Sweden

Sweco Sweden delivered organic sales growth of 3 per cent, adjusted for calendar effects. EBITA declined 5 per cent adjusted for calendar effects due to higher operating expenses, a lower billing ratio and higher absence. The market remains relatively good, albeit with uncertainty in the residential buildings segment.

Sales and profit, April–June

Net sales increased 3 per cent to SEK 2,067 million (2,012). Organic growth adjusted for calendar effects was approximately 3 per cent. The organic growth was driven by higher average fees, higher revenue from subconsultants and a higher number of employees, while higher absence and a lower billing ratio had an adverse effect. The year-on-year calendar effect of four fewer hours had a negative impact of approximately SEK 13 million on net sales and EBITA.

EBITA decreased approximately 5 per cent, corresponding to SEK 14 million, after adjusting for calendar effects. The EBITA margin decreased to 11.9 per cent (13.5). The EBITA decline was driven by

higher operating expenses, a lower billing ratio and higher absence, while higher average fees impacted positively.

The Swedish market remained relatively good during the second quarter but there were variations between the different segments. Demand for infrastructure services was strong, backed by major public and industrial investments. The markets for industrial and energy investments as well as for water and environmental services were good. In the real estate market, there was uncertainty in the residential segment with continued caution with regard to starting new projects.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021
Net sales, SEK M	2,067	2,012	4,035	3,917
Organic growth, %	2	0	2	-2
Acquisition-related growth, %	1	0	1	0
Currency, %	0	0	0	0
Total growth, %	3	0	3	-2
Organic growth adj. for calendar, %	3	-1	2	-2
EBITA, SEK M	245	272	500	519
EBITA margin, %	11.9	13.5	12.4	13.3
Number of full-time employees	6,002	5,913	5,926	5,862

Sweco Norway

Sweco Norway posted organic growth of 6 per cent, adjusted for a large negative calendar effect due to the Easter holiday. EBITA increased 1 per cent adjusted for calendar effects, driven by higher average fees and a higher billing ratio. Overall, the market remained good.

Sales and profit, April–June

Net sales increased 12 per cent to SEK 778 million (696). Acquired growth contributed 7 per cent and pertained to recent acquisitions. Organic growth adjusted for calendar effects was approximately 6 per cent. The year-on-year calendar effect of 24 fewer hours had a negative impact of approximately SEK 29 million on net sales and EBITA.

The organic growth adjusted for calendar effects was mainly driven by higher average fees and a higher billing ratio, while higher absence had a negative impact.

EBITA was impacted by a large negative calendar effect due to the Easter holiday. Adjusted for the large negative calendar effect, EBITA increased approximately 1 per cent, corresponding to SEK 1 million. EBITA was impacted positively mainly by higher average fees and a higher billing ratio, while higher operating expenses impacted negatively. The EBITA margin decreased to 4.8 per cent (9.4), largely due to the calendar effect.

The overall positive market conditions continued in the second quarter, with stable demand in the commercial building and energy markets. However, there were some signs of cooling in the strong national infrastructure market, as a result of the general economy.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021
Net sales, SEK M	778	696	1,600	1,370
Organic growth, %	2	6	8	-1
Acquisition-related growth, %	7	6	3	5
Currency, %	4	5	5	0
Total growth, %	12	16	17	5
Organic growth adj. for calendar, %	6	1	7	0
EBITA, SEK M	38	65	153	118
EBITA margin, %	4.8	9.4	9.6	8.6
Number of full-time employees	1,865	1,732	1,826	1,749

Sweco Finland

Sweco Finland recorded organic growth of 1 per cent. Net sales and EBITA were impacted by a lower billing ratio and higher absence in the quarter, while higher average fees contributed positively. The market continued to be somewhat weak overall, even if there were segments with good demand.

Sales and profit, April–June

Net sales increased 5 per cent to SEK 812 million (776). Organic growth amounted to 1 per cent and was impacted positively by higher average fees and FTE growth, while a lower billing ratio and higher absence had a negative effect. There was no yearon-year difference in the number of available working hours.

EBITA decreased 6 per cent, corresponding to SEK 4 million. The EBITA margin amounted to 8.3 per cent (9.2). The EBITA decline was mainly attributable to a lower billing ratio and higher absence, while higher fees impacted positively.

Overall, the Finnish consultancy market continued to be slightly weaker in the quarter, with some impact from longer customer decision processes. Demand for services within the building and real estate segments was relatively good, but there were variations between subsegments. The renovation, maintenance and improvement market was relatively stable. The market for industrial services was good, as was the market for infrastructurerelated services.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021
Net sales, SEK M	812	776	1,600	1,499
Organic growth, %	1	1	1	-1
Acquisition-related growth, %	0	11	2	9
Currency, %	3	-5	3	-5
Total growth, %	5	7	7	2
Organic growth adj. for calendar, %	1	0	0	-1
EBITA, SEK M	67	72	142	147
EBITA margin, %	8.3	9.2	8.9	9.8
Number of full-time employees	2,933	2,835	2,870	2,744

Sweco Denmark

Sweco Denmark delivered organic growth of 7 per cent, driven by higher average fees and FTE growth, which also impacted earnings positively. More absence and higher operating expenses had a negative impact. Overall, the market was relatively stable.

Sales and profit, April–June

Net sales increased 11 per cent to SEK 527 million (476). Organic growth amounted to 7 per cent and was impacted positively by a higher number of employees and higher average fees, while more absence impacted negatively. There was no year-on-year difference in the number of available working hours.

EBITA decreased 10 per cent, corresponding to SEK 4 million. The EBITA margin decreased to 6.3 per cent (7.7). The EBITA decrease was mainly driven by higher operating expenses and more absence, while higher average fees and a higher number of employees impacted positively.

Overall, the Danish market was stable during the second quarter, with slight differences between segments. Demand in the water and environmental sectors remained stable, driven by climate-related services in the larger cities. The infrastructure market is increasing both in the municipal as well as in the state financed road and rail infrastructure market, the latter noting increased demand thanks to the Danish state infrastructure investment plan. The market for building services was relatively stable and the market for office buildings was improving, whereas the residential market noted lower demand due to increasing interest rates and higher supply costs.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021
Net sales, SEK M	527	476	1,058	956
Organic growth, %	7	6	7	6
Acquisition-related growth, %	0	0	0	2
Currency, %	3	-5	3	-5
Total growth, %	11	2	11	3
Organic growth adj. for calendar, %	7	5	7	6
EBITA, SEK M	33	37	94	78
EBITA margin, %	6.3	7.7	8.9	8.2
Number of full-time employees	1,368	1,296	1,363	1,290

Sweco Netherlands

Sweco Netherlands delivered organic sales growth of 5 per cent driven by a higher billing ratio, higher revenue from subconsultants and higher average fees. EBITA declined, impacted by higher operating expenses. Market conditions remained good in most segments.

Sales and profit, April–June

Net sales increased 12 per cent to SEK 552 million (495). Acquired growth contributed 4 per cent and pertained to the acquisition made last year. Organic growth amounted to 5 per cent and was mainly driven by a higher billing ratio, higher revenue from subconsultants and higher average fees. There was no year-on-year difference in the number of available working hours.

EBITA decreased 16 per cent, corresponding to SEK 7 million. The EBITA margin decreased to 6.1 per cent (8.1). The EBITA decrease was mainly attributable to higher operating expenses. A higher billing ratio and higher average fees impacted positively.

The Dutch market was relatively good during the quarter, albeit with differences between segments. Demand for infrastructure services was good, backed by major public investments. Demand within residential building remained high due to the continued shortage of residential homes. In addition, the market for building services systems was good. The industry market was stable, while the energy market was good.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021
Net sales, SEK M	552	495	1,119	1,022
Organic growth, %	5	-3	3	-1
Acquisition-related growth, %	4	0	3	0
Currency, %	3	-5	3	-5
Total growth, %	12	-8	9	-6
Organic growth adj. for calendar, %	5	-3	2	0
EBITA, SEK M	34	40	83	113
EBITA margin, %	6.1	8.1	7.4	11.1
Number of full-time employees	1,422	1,356	1,429	1,359

Sweco Belgium

Sweco Belgium continued to deliver strong net sales and EBITA growth, driven by an increased number of employees and significant contribution from acquisitions. The market remained good, with continued investments in healthcare and pharma, as well as infrastructure and energy transition.

Sales and profit, April–June

Net sales increased 24 per cent to SEK 587 million (474). Acquisitions contributed 10 per cent to growth. Organic growth was 11 per cent and was mainly driven by FTE growth, while a lower billing ratio impacted negatively. There was no year-onyear difference in the number of available working hours.

EBITA increased 14 per cent to SEK 68 million (59). The EBITA margin decreased to 11.5 per cent (12.5). The EBITA increase was mainly attributable to contributions from acquisitions and continued FTE growth, while higher operating expenses had a negative impact.

The market remained good within most segments and both the private and the public sector building markets were stable. The residential market was stable as was the office market. The industry market was stable with new investments planned in the healthcare and pharmaceutical industries. The public infrastructure markets remained strong with governments continuing to invest in infrastructure and sustainable mobility solutions. Belgium is in the middle of a complete energy transition with a focus on decarbonisation in the transportation, building and industry sectors as well as transforming energy production. The electrification in industry and the public domain is increasing.

During the quarter, Belgium completed two smaller acquisitions, Vitech and AB Soil Remediation Experts, with in total 16 employees.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021
Net sales, SEK M	587	474	1,184	953
Organic growth, %	11	12	12	10
Acquisition-related growth, %	10	6	9	7
Currency, %	3	-5	3	-5
Total growth, %	24	14	24	12
Organic growth adj. for calendar, %	11	12	11	11
EBITA, SEK M	68	59	145	124
EBITA margin, %	11.5	12.5	12.3	13.0
Number of full-time employees	1,503	1,190	1,483	1,171

Sweco UK

Sweco UK showed strong organic growth and a significant EBITA increase, both driven by higher average fees and a positive development of project adjustments. The UK market remained challenging in the quarter, but there was positive demand development in some sectors.

Sales and profit, April–June

Net sales increased 20 per cent to SEK 347 million (289). Organic growth adjusted for calendar effects was approximately 17 per cent and was mainly driven by higher average fees, a positive development of project adjustments and higher revenue from subconsultants. The year-on-year calender effect of 8 fewer hours had a negative impact of approximately SEK 4 million on net sales and EBITA.

EBITA increased approximately SEK 12 million, adjusted for calendar effects. The EBITA margin increased to 3.5 per cent (1.5). The EBITA increase was mainly attributable to higher average fees and a positive development of project adjustments.

The UK market remained challenging in the second quarter. The rise in raw material and energy prices was further exacerbated by the war in Ukraine. Public sector infrastructure projects were at particular risk of facing these challenges. By contrast, there was positive demand development for new buildings as well as renovation work in the residential and commercial sector, particularly in the London area. The energy, environment and water markets remained stable.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021
Net sales, SEK M	347	289	691	602
Organic growth, %	15	-4	8	-8
Acquisition-related growth, %	0	0	0	0
Currency, %	5	-2	7	-4
Total growth, %	20	-5	15	-12
Organic growth adj. for calendar, %	17	-4	9	-7
EBITA, SEK M	12	4	27	20
EBITA margin, %	3.5	1.5	3.9	3.4
Number of full-time employees	1,163	1,188	1,162	1,194

Sweco Germany and Central Europe

The quarter saw net sales growth and continued earnings improvement. Net sales and EBITA were positively affected by higher average fees, while a lower billing ratio and higher absence impacted negatively. The construction sector slowed down, whereas the energy transition and public spending continued to drive demand.

Sales and profit, April–June

Net sales increased 4 per cent to SEK 505 million (487). Organic growth was approximately 0 per cent adjusted for calendar effects. Organic growth was driven by higher average fees, while higher absence and a lower billing ratio impacted negatively. The year-on-year calendar effect of two more hours had a positive impact of approximately SEK 1 million on net sales and EBITA.

EBITA increased to SEK 14 million (-9). Adjusted for calendar effects, EBITA increased approximately SEK 22 million. The EBITA margin increased to 2.8 per cent (-1.8). The EBITA increase was mainly driven by higher average fees, while a lower billing ratio and higher absence impacted negatively.

Overall, the German market slowed down in the quarter, mainly driven by weak activity in the construction sector. Customers continued to delay or stop projects. At the same time, demand for services within the energy sector remained strong due to the accelerated energy transition. The slow down in the private sector was also balanced by spending in the public sector, which remained at high levels.

Net sales & EBITA margin, rolling 12 months

Net sales and profit	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021
Net sales, SEK M	505	487	1,014	970
Organic growth, %	0	1	1	2
Acquisition-related growth, %	0	0	0	0
Currency, %	3	-5	3	-5
Total growth, %	4	-3	5	-3
Organic growth adj. for calendar, %	0	-1	0	2
EBITA, SEK M	14	-9	32	-11
EBITA margin, %	2.8	-1.8	3.1	-1.1
Number of full-time employees	2,317	2,342	2,330	2,347

Other information

Parent Company, January–June 2022

Parent Company net sales totalled SEK 524 million (469) and were attributable to intra-group services. Profit after net financial items totalled SEK 279 million (309). Investments in equipment totalled SEK 9 million (32). Cash and cash equivalents at the end of the period totalled SEK 202 million (154).

Accounting principles

Sweco complies with the International Financial Reporting Standards (IFRS) and interpretive statements from the International Financial Reporting Interpretations Committee (IFRIC), as adopted by the EU. This report was prepared in accordance with IAS 34, Interim Reporting; the Swedish Annual Accounts Act; and the Swedish Financial Reporting Board's RFR 2, Reporting for Legal Entities. The Group applies the same accounting and valuation principles as those described in Note 1 in the Annual Report for 2021.

In this report, amounts in brackets refer to the corresponding period of the previous year. Because table items are individually rounded off, table figures do not always tally. The interim report comprises pages 1–28; the interim financial information presented on pages 1–28 is therefore part of this financial report.

Key performance measures

Sweco follows the guidelines from ESMA (European Securities and Markets Authority) regarding APMs (Alternative Performance Measures). In brief, these are measures of historical or ongoing operating results and financial performance that are not specified or defined in IFRS. The presentation of non-IFRS financial measures is limited as an analytical tool and should not be used as a substitute for key ratios pursuant to IFRS. Sweco believes that the APMs will enhance investors' evaluation of our ongoing operating results, aid in forecasting future periods and facilitate meaningful comparison of results between periods. The non-IFRS financial measures presented in this report may differ from similarly titled measures used by other companies. A complete list of all Sweco's definitions can be found on our website: https://www.swecogroup.com/ investor-relations/financial-information/definitions/

Sweco's main key financial metrics, defined as Alternative Performance Measures (APMs) in accordance with IFRS, are EBITA and Net debt/EBITDA.

EBITA is the Group's key metric for operational performance at Group and BA level. Sweco's EBITA measure is defined as Earnings Before Interest, Taxes and Acquisition-related items. All leases are treated as operating leases and the total cost of the lease affects EBITA. Operating lease treatment follows IAS 17 (the standard for leases applicable through 31 December 2018).

Net debt/EBITDA is Sweco's key metric for financial strength. The definition remains essentially in line with the covenants defined in Sweco's bank financing agreements. Net debt is defined as financial debt (comprised almost exclusively of interest-bearing bank debt) less cash and cash equivalents and short-term investments. Lease liabilities are excluded from Net debt. As with the calculation of EBITA, when calculating EBITDA all leases are assumed to comprise operating leases pursuant to IAS 17.

Items affecting comparability (IAC): To assist in understanding its operations, Sweco believes that it is useful to consider certain measures and ratios exclusive of items affecting comparability. Items affecting comparability include items that are non-recurring, have a significant impact and are considered to be important for understanding the operating performance when comparing results between periods. Items affecting comparability relate to restructuring and integration costs, costs related to acquisitions and divestments, project write-downs and other one-off items when amounts are significant. The items affecting comparability are disclosed in this report. All measures and ratios in this report have been disclosed including items affecting comparability first and then excluding items affecting comparability as a second measure when deemed appropriate.

The reconciliation of Sweco's key financial metrics, described above, and IFRS measures are presented on pages 21 and 28. The organic growth calculation is presented on page 27.

The Sweco share

The Sweco share is listed on Nasdaq Stockholm. The share price of the Sweco Class B share was SEK 106.30 at the end of the period, representing a decrease of 22 per cent during the quarter. Nasdaq Stockholm OMXSPI decreased 17 per cent over the same period.

The total number of shares at the end of the period was 363,251,457: 31,086,598 Class A shares and 332,164,859 Class B shares. The total number of shares outstanding was 358,619,404: 31,086,598 Class A shares and 327,532,806 Class B shares.

Risks and uncertainties

Significant risks and uncertainties affecting the Sweco Group and the Parent Company include business risks associated with the general economic trend and investment level in various markets, the capacity to attract and retain skilled personnel, the effects of political decisions as well as risks and uncertainties related to the war in Ukraine and the Covid-19 pandemic. The Group is also exposed to various types of financial risk, such as foreign currency, interest rate and credit risk. The risks to which Sweco is exposed are detailed in Sweco's 2021 Annual Report (page 130–131, Risks and Risk Management).

Calendar effects

Year 2022

The number of normal working hours in 2022, based on the 12-month sales-weighted business mix as of September 2021, is broken down as follows:

	2022	2021
Quarter 1:	497	487	10
Quarter 2:	468	473	-5
Quarter 3:	516	517	-1
Quarter 4:	490	496	-6
Total:	1,971	1,973	-2

Acquisition-related amortisation

Acquisition-related intangible assets and expensed costs for future services will be amortised pursuant to the following schedule, based on acquisitions to date:

2022 Estimate	SEK -105 million
2023 Estimate	SEK -61 million
2024 Estimate	SEK -31 million
2025 Estimate	SEK -14 million

Forthcoming financial information

Interim report January–September	27 October 2022
Year-end report 2022	9 February 2023

For further information, please contact:

Åsa Bergman, President and CEO asa.bergman@sweco.se

Olof Stålnacke, CFO

Phone +46 70 306 46 21 olof.stalnacke@sweco.se

Marcela Sylvander, CCO

Phone +46 79 341 14 08 marcela.sylvander@sweco.se

SWECO AB (publ) Org. nr. 556542-9841

Gjörwellsgatan 22, Box 34044, 100 26 Stockholm, Phone: +46 8 695 60 00 Email: info@sweco.se www.swecogroup.com

This report has not been audited.

The Board of Directors and the President give their assurance that this interim report gives a true and fair view of the business activities, financial position and results of operations of the Group and the Parent Company, and describes the significant risks and uncertainties to which the Parent Company and Group companies are exposed.

Stockholm, 15 July 2022

Johan Nordström Board Chairman

Johan Hjertonsson Board member

Christine Wolff Board member

Alf Göransson Board member

Susanne Pahlén Åklundh Board member

Johan Wall Board member

Maria Ekh Employee representative

Anna Leonsson Employee representative

Görgen Edenhagen Employee representative

Åsa Bergman President & CEO Board member

KPIs

KPIs1	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021	Jul 2021– Jun 2022	Full-year 2021
Profitability
EBITA margin excl. IAC, %	7.9	9.4	9.3	9.6	9.4	9.5
EBITA margin, %	7.9	9.4	9.3	9.6	9.1	9.2
Operating margin (EBIT), %	8.8	9.0	9.6	9.2	9.2	9.1
Revenue growth2
Organic growth, %	4	2	4	0		3
Acquisition-related growth, %	2	2	2	2		3
Currency, %	2	-2	3	-3		-1
Total growth, %	8	3	9	0		4
Organic growth adj. for calendar, %	5	1	4	1		3
Organic growth adj. for calendar & IAC, %	5	1	4	1		2
Debt
Net debt, SEK M			2,014	1,942		913
Interest-bearing debt, SEK M			2,633	2,417		1,808
Financial strength
Net debt/Equity, %			22.7	25.1		10.6
Net debt/EBITDA, x			0.9	1.0		0.4
Equity/Assets ratio, %			42.2	39.5		43.8
Available cash and cash equivalents, SEK M			3,250	2,919		4,166
– of which unutilised credit, SEK M			2,631	2,444		3,271
Return
Return on equity, %			19.2	17.1		18.5
Return on capital employed, %			15.7	12.8		15.0
Share data
Earnings per share, SEK	1.14	1.06	2.44	2.17	4.46	4.18
Diluted earnings per share, SEK	1.14	1.06	2.43	2.15	4.44	4.17
Equity per share, SEK3			24.73	21.59		24.04
Diluted equity per share, SEK3			24.70	21.55		23.89
Number of shares outstanding at reporting date				358,619,404 357,485,070		357,485,070
Number of repurchased Class B shares			4,632,053	5,766,387		5,766,387

1) The definitions of the Key Performance Indicators (KPIs) are available on Sweco's website.

2) See page 27 for details on Sweco's calculation of revenue growth.

3) Refers to portion attributable to Parent Company shareholders.

Reconciliation of EBIT and the APMs EBITA and EBITDA, SEK M	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021	Jul 2021– Jun 2022	Full-year 2021
Operating profit (EBIT)	535	509	1,165	1,032	2,107	1,974
Acquisition-related items	-34	36	0	70	34	104
Lease expenses1	-206	-202	-412	-397	-812	-797
Depreciation and impairments, right-of-use assets	190	186	381	365	749	733
EBITA2	486	529	1,134	1,070	2,078	2,014
Amortisation/depreciation and impairment, tangible and intangible fixed assets	61	69	127	137	271	280
EBITDA3	547	598	1,261	1,206	2,349	2,294

1) Lease expenses pertain to adjustments made in order to treat all leases as operating leases.

2) EBITA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITA.

3) EBITDA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes, Depreciation & amortisation and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITDA.

Reconciliation of the APMs EBITA and EBITA excl. IAC, SEK M	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021	Jul 2021– Jun 2022	Full-year 2021
EBITA	486	529	1,134	1,070	2,078	2,014
Items affecting comparability (IAC)1	–	–	–	–	56	56
EBITA excl. IAC	486	529	1,134	1,070	2,134	2,070

1) Items affecting comparability encompass the provisions related to the execution of the turn-around plan in Germany of SEK 56 million in Q3 2021 and are reported in Business Area Germany & Central Europe.

Consolidated income statement

SEK M	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021	Jul 2021– Jun 2022	Full-year 2021
Net sales	6,116	5,643	12,193	11,181	22,804	21,792
Other income	1	0	6	2	14	11
Other external expenses	-1,234	-1,045	-2,368	-2,023	-4,579	-4,234
Personnel expenses	-4,130	-3,799	-8,158	-7,556	-15,079	-14,477
Amortisation/depreciation and impairment, tangible and intangible fixed assets1	-61	-69	-127	-137	-271	-280
Depreciation and impairment, right-of-use assets	-190	-186	-381	-365	-749	-733
Acquisition-related items2	34	-36	0	-70	-34	-104
Operating profit (EBIT)	535	509	1,165	1,032	2,107	1,974
Net financial items3	-12	-8	-20	-18	-39	-36
Interest cost of leasing4	-11	-12	-22	-24	-44	-46
Other financial items5	3	0	2	4	3	5
Total net financial items	-20	-20	-41	-38	-80	-77
Profit before tax	515	489	1,124	994	2,027	1,897
Income tax	-107	-110	-252	-223	-435	-405
PROFIT FOR THE PERIOD	409	379	872	771	1,592	1,492
Attributable to:
Parent Company shareholders	409	379	872	771	1,592	1,492
Non-controlling interests	0	0	0	0	0	0
Earnings per share attributable to Parent Company shareholders, SEK	1.14	1.06	2.44	2.17	4.46	4.18
Average number of shares outstanding				358,279,204 356,769,580 357,920,048 356,030,569 357,130,659 356,757,820
Dividend per share, SEK						2.45

1) Includes tangible assets and intangible assets that are not acquisition-related.

2) Acquisition-related items consist of amortisation and impairment of goodwill and acquisition-related intangible assets, revaluation of purchase price, profit and losses on the divestment

of companies, operations, land and buildings, as well as costs for received future service. See page 25 for additional details. 3) Net financial items comprise interest expenses on credit facilities and costs related to credit facilities less interest income on cash and cash equivalents.

4) Interest cost of leasing comprises the interest cost of leasing pursuant to IFRS 16.

5) Other financial items: Result and distributions from participation in associated companies and other securities, result from sale of participations in associated companies and other securities, foreign exchange gains and losses on financial assets and liabilities, and other interest income and interest expenses.

Consolidated statement of comprehensive income

SEK M	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021	Jul 2021– Jun 2022	Full-year 2021
Profit for the period	409	379	872	771	1,592	1,492
Items that will not be reversed in the income statement
Revaluation of defined benefit pensions, net after tax1, 2	–	–	–	–	4	4
Items that may subsequently be reversed in the income statement
Translation differences, net after tax	129	-59	209	89	300	180
COMPREHENSIVE INCOME FOR THE PERIOD	538	321	1,081	861	1,896	1,676
Attributable to:
Parent Company shareholders	538	321	1,080	860	1,896	1,676
Non-controlling interests	0	0	0	0	0	0
1) Tax on revaluation of defined benefit pensions	–	–	–	–	-2	-2

2) Revalued annually. Reviewed quarterly in the event of material changes to actuarial assumptions.

Consolidated cash flow statement

SEK M	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021	Jul 2021– Jun 2022	Full-year 2021
Profit before tax	515	489	1,124	994	2,027	1,897
Amortisation/depreciation and impairment	276	280	555	550	1,119	1,114
Other non-cash items	29	99	36	128	163	254
Cash flow from operating activities before changes in working capital, tax paid, interest paid and received	820	869	1,715	1,672	3,308	3,265
Interest cost leasing	-11	-12	-22	-24	-44	-46
Net interest paid	-4	-4	-8	-9	-15	-16
Tax paid	-130	-152	-380	-283	-528	-432
Changes in working capital	-170	-423	-566	-776	-362	-573
Cash flow from operating activities	505	279	739	579	2,359	2,199
Acquisition and divestment of subsidiaries and operations	-343	-260	-375	-287	-435	-347
Purchase and disposal of intangible and tangible assets	-67	-50	-134	-117	-247	-229
Other investing activities	0	0	2	-1	2	-2
Cash flow from investing activities	-410	-310	-507	-405	-680	-578
Borrowings and repayment of borrowings	1,058	867	775	-687	145	-1,316
Principal elements of lease payments	-196	-186	-396	-369	-769	-743
Dividends paid	-876	-782	-876	-782	-876	-782
Cash flow from financing activities	-14	-101	-497	-1,838	-1,500	-2,841
CASH FLOW FOR THE PERIOD	81	-132	-264	-1,663	179	-1,220

Consolidated balance sheet

SEK M	30 Jun 2022	30 Jun 2021	31 Dec 2021
Goodwill	8,782	7,914	8,143
Other intangible assets	261	330	284
Property, plant and equipment	539	514	510
Right-of-use assets	2,487	2,626	2,508
Financial assets	334	379	347
Current assets excl. cash and cash equivalents	8,025	7,332	6,969
Cash and cash equivalents incl. short-term investments	619	475	896
TOTAL ASSETS	21,048	19,569	19,657
Equity attributable to Parent Company shareholders	8,868	7,717	8,594
Non-controlling interests	10	10	10
Total equity	8,878	7,727	8,604
Non-current lease liabilities	1,837	2,029	1,884
Non-current interest-bearing debt	2,312	2,136	1,805
Other non-current liabilities	863	837	873
Current lease liabilities	739	716	727
Current interest-bearing debt	321	281	4
Other current liabilities	6,097	5,844	5,759
TOTAL EQUITY AND LIABILITIES	21,048	19,569	19,657
Contingent liabilities	1,067	897	928

Consolidated statement of changes in equity

	Jan–Jun 2022					Jan–Jun 2021
SEK M	Equity attributable to Parent Company shareholders	Non controlling interests	Total equity	Equity attributable to Parent Company shareholders	Non controlling interests	Total equity
Equity, opening balance	8,594	10	8,604	7,548	10	7,557
Comprehensive income for the period	1,080	0	1,081	860	0	861
Share bonus scheme	66	–	66	87	–	87
Share savings schemes	3	–	3	3	–	3
Transfer to shareholders	-876	–	-876	-782	0	-782
EQUITY, CLOSING BALANCE	8,868	10	8,878	7,717	10	7,727

Acquisitions

The following acquisitions of companies and operations were carried out during the period.

Included from	Business area	Acquired share, %	net sales in SEK M1	Number of employees (individuals)
February	Sweden	100	31	28
May	Norway	100	186	86
June	Norway	100	130	69
			24	16
			370	199
				Annual

1) Estimated annual net sales.

2) Acqusition of Vitech (Belgium) and AB Soil Remediation Experts BV (Belgium).

During the period, the acquired companies contributed SEK 62 million in net sales, SEK 6 million in EBITA and SEK 6 million in operating profit (EBIT). If the companies had been owned as of 1 January 2022, they would have contributed approximately SEK 195 million in net sales, about SEK 15 million in EBITA and about SEK 13 million in operating profit (EBIT). The transaction costs for the acquisitions during this period and the previous period totalled SEK 3 million.

The purchase considerations of the acquisitions carried out in the period totalled SEK 485 million and had a negative impact on cash and cash equivalents of SEK 444 million. The acquisition analyses during the period are preliminary. The acquisitions impacted the consolidated balance sheet as detailed in the table below.

Acquisitions, SEK M
Intangible assets	441
Property, plant and equipment	9
Right-of-use assets	16
Financial assets	0
Current assets	150
Non-current lease liabilities	-11
Non-current other liabilities	-5
Deferred tax	-4
Current lease liabilities	-4
Other current liabilities	-106
Total purchase consideration	485
Payment of deferred purchase price	9
Cash and cash equivalents in acquired companies	-50
DECREASE IN GROUP CASH AND CASH EQUIVALENTS1	444

1) Includes an acquistion in Belgium not yet announced.

Divestments

In the quarter, Sweco divested a non-core operation in the Netherlands with 16 employees. The divestment contributed SEK 14 million in net sales and SEK 4 million in operating profit during the period. The divestment had a positive impact on profit of SEK 63 million and on the Group's cash and cash equivalents of SEK 69 million. The impact of the divestment on the consolidated balance sheet was limited.

Acquisition-related items

SEK M	Apr–Jun 2022	Apr–Jun 2021	Jan–Jun 2022	Jan–Jun 2021	Jul 2021– Jun 2022	Full-year 2021
Amortisation of acquisition-related intangible assets	-24	-26	-47	-48	-99	-100
Revaluation of additional purchase price	0	0	0	0	16	16
Profit/loss on divestment of companies and operations1	64	–	64	–	88	24
Cost for received future service	-6	-11	-17	-22	-39	-45
ACQUISITION-RELATED ITEMS	34	-36	0	-70	-34	-104

1) Last year during third quarter a provision for exposure in a previous divestment on SEK 5 million was released and the divestment of the Geolab business in Sweden resulted in a profit of SEK 17 million.

Fair value of financial instruments

The Group's financial instruments consist of shares, trade receivables, other receivables, cash and cash equivalents, trade payables, forward exchange contracts, interest bearing liabilities, other liabilities, and contingent considerations. Descriptions of each category and valuation techniques for the different levels are shown below and in the 2021 Annual Report, Note 33 Financial instrument per category. No transfers between any of the levels took place during the period.

Forward exchange contracts are measured at fair value based on Level 2 inputs. As per 30 June 2022, forward contracts with a positive market value amounted to SEK 0 million compared with SEK 0 million as per 31 December 2021 and forward contracts with a negative market value amounted to SEK 3 million compared with SEK 0 million as per 31 December 2021. Unlisted financial assets and contingent considerations are measured at fair value based on Level 3 inputs. The fair value of unlisted financial assets amounted to SEK 10 million as per 30 June 2022 compared with SEK 10 million as per 31 December 2021, and financial liabilities for contingent considerations amounted to SEK 11 million compared with SEK 15 million as per 31 December 2021. Other financial assets and liabilities are measured at accrued amortised cost. Accrued amortised cost is considered a good approximation of fair value since the fixed interest period for all loans is less than one year.

Quarterly review per business area

	2022 Q2	2022 Q1	2021 Q4	2021 Q3	2021 Q2	2021 Q1	2020 Q4	2020 Q3	2020 Q2
Net sales, SEK M
Sweco Sweden	2,067	1,968	2,035	1,446	2,012	1,905	1,992	1,489	2,015
Sweco Norway	778	822	719	533	696	675	620	489	598
Sweco Finland	812	788	802	646	776	723	729	584	726
Sweco Denmark	527	531	512	436	476	480	500	421	467
Sweco Netherlands	552	567	554	448	495	528	515	466	538
Sweco Belgium	587	597	504	450	474	478	414	392	418
Sweco UK	347	344	295	302	289	313	280	280	305
Sweco Germany & Central Europe	505	509	568	477	487	483	175	481	504
Group-wide, Eliminations, etc.	-59	-50	-70	-48	-62	-47	-83	-56	-81
TOTAL NET SALES	6,116	6,077	5,920	4,691	5,643	5,538	5,142	4,547	5,489
Items affecting comparability (IAC)2	–	–	–	16	–	–	290	–	–
TOTAL NET SALES excl. IAC	6,116	6,077	5,920	4,707	5,643	5,538	5,432	4,547	5,489
EBITA, SEK M1
Sweco Sweden	245	255	269	132	272	247	282	149	253
Sweco Norway	38	116	58	24	65	53	44	44	24
Sweco Finland	67	75	89	84	72	76	85	80	104
Sweco Denmark	33	61	55	50	37	41	50	41	22
Sweco Netherlands	34	49	54	34	40	73	42	44	35
Sweco Belgium	68	78	50	57	59	65	46	48	45
Sweco UK	12	15	7	28	4	16	6	9	21
Sweco Germany & Central Europe	14	17	30	-48	-9	-3	-317	0	8
Group-wide, Eliminations, etc.	-25	-17	-26	-1	-12	-27	-13	2	-18
EBITA	486	648	585	359	529	540	224	417	495
Items affecting comparability (IAC)2	–	–	–	56	–	–	290	–	–
EBITA excl. IAC	486	648	585	415	529	540	514	417	495
EBITA margin, %1
Sweco Sweden	11.9	12.9	13.2	9.1	13.5	13.0	14.2	10.0	12.6
Sweco Norway	4.8	14.1	8.1	4.6	9.4	7.8	7.1	8.9	4.1
Sweco Finland	8.3	9.5	11.1	13.0	9.2	10.5	11.7	13.7	14.3
Sweco Denmark	6.3	11.4	10.7	11.4	7.7	8.6	9.9	9.7	4.8
Sweco Netherlands	6.1	8.7	9.8	7.5	8.1	13.8	8.1	9.4	6.6
Sweco Belgium	11.5	13.0	9.8	12.6	12.5	13.5	11.0	12.3	10.8
Sweco UK	3.5	4.3	2.3	9.3	1.5	5.1	2.2	3.1	6.8
Sweco Germany & Central Europe	2.8	3.4	5.3	-10.1	-1.8	-0.5	-180.8	0.0	1.7
EBITA margin	7.9	10.7	9.9	7.6	9.4	9.8	4.4	9.2	9.0
Items affecting comparability (IAC)2	–	–	–	1.2	–	–	5.1	–	–
EBITA margin excl. IAC	7.9	10.7	9.9	8.8	9.4	9.8	9.5	9.2	9.0
Billing ratio, %	74.3	73.6	74.1	73.7	75.0	73.6	74.1	73.8	75.5
Number of normal working hours	468	497	496	517	473	487	491	518	465
Number of full-time employees	18,626	18,263	18,058	17,627	17,904	17,628	17,470	16,988	17,555

1) EBITA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITA.

2) Items affecting comparability encompass the provisions related to the execution of the turn-around plan in Germany of SEK 56 million in Q3 2021 and the write-down of working capital of SEK 290 million in the German operations in Q4 2020. Both are reported in Business Area Germany & Central Europe.

Period review per business area

January–June		Net sales, SEK M		EBITA, SEK M2		EBITA margin, %2		Number of full time employees
Business Area1	2022	2021	2022	2021	2022	2021	2022	2021
Sweco Sweden	4,035	3,917	500	519	12.4	13.3	5,926	5,862
Sweco Norway	1,600	1,370	153	118	9.6	8.6	1,826	1,749
Sweco Finland	1,600	1,499	142	147	8.9	9.8	2,870	2,744
Sweco Denmark	1,058	956	94	78	8.9	8.2	1,363	1,290
Sweco Netherlands	1,119	1,022	83	113	7.4	11.1	1,429	1,359
Sweco Belgium	1,184	953	145	124	12.3	13.0	1,483	1,171
Sweco UK	691	602	27	20	3.9	3.4	1,162	1,194
Sweco Germany & Central Europe	1,014	970	32	-11	3.1	-1.1	2,330	2,347
Group-wide, Eliminations, etc.3	-109	-108	-42	-40	–	–	51	49
TOTAL GROUP	12,193	11,181	1,134	1,070	9.3	9.6	18,439	17,764

1) Sweco is not applying IFRS 16 at the business area level.

2) EBITA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITA.

3) Group-wide, Eliminations, etc. includes Group functions and the Dutch real estate operations.

Net sales growth

The table below shows the calculation of organic growth excluding calendar effects – i.e., net sales growth adjusted for the impact of acquisitions and divestments as well as the effect of foreign currency fluctuations and calendar effects.

	Apr–Jun	Apr–Jun	Growth, % Apr–Jun	Jan–Jun	Jan–Jun	Growth, % Jan–Jun
	2022	2021	2022	2022	2021	2022
Reported net sales	6,116	5,643	8	12,193	11,181	9
Adjustment for currency effects		131	2		302	3
Net sales, currency-adjusted	6,116	5,774	6	12,193	11,483	6
Adjustment for acquisitions/divestments	-131	-10	2	-233	-14	2
Comparable net sales, currency-adjusted	5,985	5,764	4	11,960	11,469	4
Adjustment of calendar effect	45		-1	-54		0
Comparable net sales, adjusted for currency
and calendar effects	6,030	5,764	5	11,906	11,469	4

			Growth, %			Growth, %
	Apr–Jun	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Jan–Jun
	2021	2020	2021	2021	2020	2021
Reported net sales	5,643	5,489	3	11,181	11,170	0
Adjustment for currency effects		-105	-2		-295	-3
Net sales, currency-adjusted	5,643	5,384	5	11,181	10,875	3
Adjustment for acquisitions/divestments	-137		2	-276		2
Comparable net sales, currency-adjusted	5,506	5,384	2	10,904	10,875	0
Adjustment of calendar effect	-81		1	34		0
Comparable net sales, adjusted for currency
and calendar effects	5,425	5,384	1	10,938	10,875	1

Net debt

SEK M	30 Jun 2022	30 Jun 2021	31 Dec 2021
Non-current interest-bearing debt	2,312	2,136	1,805
Current interest-bearing debt	321	281	4
Cash and cash equivalents incl. short-term investments	-619	-475	-896
NET DEBT1	2,014	1,942	913

1) Net debt is an alternative performance measure (APM) defined as financial debt (comprised almost exclusively of interest-bearing bank debt) less cash and cash equivalents and short-term investments. Lease liabilities are excluded from Net debt.

Parent Company income statement

SEK M	Jan–Jun 2022	Jan–Jun 2021	Full-year 2021
Net sales	524	469	946
Operating expenses	-567	-512	-1,018
Operating loss	-42	-43	-72
Net financial items	321	353	889
Profit/loss after net financial items	279	309	817
Appropriations	–	1	-110
Profit/loss before tax	279	310	707
Tax	–	–	-68
PROFIT/LOSS AFTER TAX	279	310	639

Parent Company balance sheet

SEK M	30 Jun 2022	30 Jun 2021
Intangible assets	17	21
Property, plant and equipment	62	74
Financial assets	6,552	6,540
Current assets	2,584	2,060
TOTAL ASSETS	9,215	8,695
Equity	4,156	4,292
Untaxed reserves	764	654
Non-current liabilities	2,162	2,031
Current liabilities	2,132	1,718
TOTAL EQUITY AND LIABILITIES	9,215	8,695