Q3 Presentation 23 October, 2014

Tomas Carlsson, President and CEO

Jonas Dahlberg, CFO

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Q3 highlights

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• Operating profit highest in any third

quarter so far

• Solid financial development

• Strong organic growth in Norway and

Finland

• Profit improvement due to successful

and completed integration of Vectura,

and turnaround in Central Europe

• New financial target, long term debt

financing secured

• Stable market

Q3 financial summary

• Net sales SEK 2,000 million (1,810)

• + 11%, of which 4%u organic

• Norway +8% organic, Finland +5% organic

• Operating profit (EBIT) SEK 143 million (106)

• EBITA SEK 155 million (118)

• Net debt/EBITDA 1.9x (1.9x)

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EBIT by quarter and rolling 12 months

SEK million

65

95 122 112

70

128 137 128

75

192

232

149

99

200

134

191

106 128

212

156 143

0

100

200

300

400

500

600

700

800

0

50

100

150

200

250

300

350

400

450

500

0909

1209

0310

0610

0910

1210

0311

0611

0911

1211

0312

0612

0912

1212

0313

0613

0913

1213

0314

0614

0914

Quarter

Rolling 12 months

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2014 Q3 by BA – vs last year

Q3 2014 Q3 2013 Diff.

Sweden 81.0 79.1 1.9

Norway 41.5 34.9 6.6

Finland 26.5 26.1 0.4

Central Europe 4.3 -5.9 10.2

Group and eliminations 1.9 -16.0 17.9

Amortisations and impairments -12.0 -12.2 0.2

Total 143.2 106.0 37.2

Business Area

Operating profit, SEK M

• Increased volume in July impacting approximately

SEK -15 million • Improved gross margin, volume effect, lower billing

ratio

• Improved billing ratio, project losses in international

business and restructuring costs

• Positive impact of restructuring in Poland and Russia

• No integration cost, last year integration cost SEK 15

million

Income statement

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Jul-Sep 2014

• Growth 11% – Organic 4%u, acquired

5%u, currency 2%u

• Increased volume in July due to

Vectura integration contributing

SEK -15 million compared to Q3 last

year

• Limited calendar effect, +2 hours,

SEK +5 million

• Billing ratio +1.8%-u – Improvement

in Finland, Central Europe and

Sweden, Norway lower – Negative

mix effects limiting margin impact

Jan-Sep 2014

• Growth 16% – Organic 2%u, acquired

14%u, currency 0%u

• Calendar effect -4 hours, SEK -19

million

• Billing ratio +1.3%-u – Negative mix

effects limiting margin impact

SEK M Jul-Sep 2014 Jul-Sep 2013 Jan-Sep 2014 Jan-Sep 2013 LTM Sep 2014 FY 2013

Net sales 2,000.1 1,809.7 6,659.1 5,729.0 9,095.1 8,165.0

Other income 0.0 -0.0 0.1 0.0 0.1 0.0

Other external expenses -515.4 -458.2 -1,551.3 -1,316.7 -2,178.8 -1,944.2

Personnel costs -1,290.6 -1,197.8 -4,448.7 -3,859.8 -6,022.2 -5,433.3

EBITDA 194.1 153.7 659.2 552.5 894.2 787.5

Amortisation/depreciation

and impairments-38.9 -35.5 -111.2 -90.1 -156.2 -135.1

EBITA 155.2 118.2 548.0 462.4 738.0 652.4

Amortisation of acquisition-

related intangible assets-12.0 -12.2 -37.6 -31.8 -99.9 -94.1

Operating profit (EBIT) 143.2 106.0 510.4 430.6 638.1 558.3

Net financial items -9.0 -13.5 -39.1 -22.6 -48.5 -32.0

Profit before tax 134.2 92.5 471.3 408.0 589.6 526.3

Income tax expense -41.9 -21.7 -126.5 -98.8 -174.4 -146.7

Profit for the period 92.3 70.8 344.8 309.2 415.2 379.6

EBITA-margin, % 7.8 6.5 8.2 8.1 8.1 8.0

Operating margin (EBIT), % 7.2 5.9 7.7 7.5 7.0 6.8

Billing ratio, % 76.0 74.2 75.4 74.1 75.1 74.2

New financial target and

long term financing

New financial target

• New target: Net debt/ EBITDA < 2.0

• Replacing current target on Net debt/Equity

Long term financing secured

• Refinancing of existing SEK 800 million credit

facility from Vectura acquisition with new 5

year facility – Lower cost, improved terms

(from 3 to 5 years)

• Combined with existing facility, SEK 1.7 billion

in debt finance secured for more than 3 years

• Cost efficient

capital structure

• Financing available

for further value

creating acquisitions

• Balanced risk-taking

Balance sheet

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• Net Debt/EBITDA 1.9x (1.9x)

• Disposable liquid assets including

unutilized credit facilities amount to

SEK 667 million

• Long-term debt financing of SEK

1,700 million secured for more

than 3 years

• Increase of working capital

impacting cash flow and net debt

SEK M 30 Sep 2014 30 Sep 2013 31 Dec 2013

Goodwill 2,153.5 2090.0 2,088.4

Other intangible assets 128.9 159.7 150.6

Tangible assets 398.2 395.0 394.7

Financial assets 65.6 53.1 55.9

Current assets excl cash and cash

equivalents3,499.9 3,077.3 2,994.5

Cash and cash equivalents 148.5 209.8 318.7

Total Assets 6,394.6 5,984.9 6,002.8

Equity attributable to owners of the

Parent Company1,677.2 1,566.8 1,617.6

Non-controlling interests 14.4 20.3 15.1

Total Equity 1,691.6 1,587.1 1,632.6

Non-current liabilities 1,618.4 1,759.5 1,638.4

Current liabilities 3,084.6 2,638.3 2,731.7

Total Equity and Liabilities 6,394.6 5,984.9 6,002.8

Pledged assets - 1.8 -

Contingent liabilities 215.0 220.7 188.9

Net debt, MSEK 1,703.8 1,550.7 1,323.6

Net debt/Equity, % 100.7 97.7 81.1

Net debt/EBITDA, times 1.9 1.9 1.7

Equity/Assets ratio, % 26.5 26.5 27.2

Cash flow

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• Stable contribution from

operating activities

• Increase of working capital

of transitory nature

SEK M

Jul-Sep

2014

Jul-Sep

2013

Jan-Sep

2014

Jan-Sep

2013

LTM Sep

2014FY 2013

Cash flow from operating activities before

changes in working capital and paid tax189.1 142.0 633.2 529.6 843.9 740.3

Paid tax -61.4 -51.7 -239.5 -192.7 -273.9 -227.1

Changes in working capital -258.2 -36.8 -337.6 -138.4 -216.5 -17.3

Cash flow from operating activities -130.5 53.5 56.1 198.5 353.5 495.9

Cash flow from investing activities -50.1 -867.1 -114.6 -923.3 -187.1 -997.6

Cash flow from financing activities 148.1 851.6 -139.1 591.7 -258.8 472.0

Cash flow for the period -32.5 38.0 -197.6 -133.1 -92.4 -29.7

Sweco Sweden, Q3

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• Organic growth 3% – Stable market

• Commissioned by Stockholm County Council

to design 11km underground metro – Order

value SEK 500-600 million – Accentuating

Sweco’s market leadership in Infrastructure

• Increased billing ratio from improved utilization

and administrative efficiency (Synergies)

• Increased volume in July due to Vectura

estimated to have SEK -15 million impact

on EBIT

Jul-Sep Jul-Sep Jan-Sep Jan-Sep FY

2014 2013 2014 2013 2013

Net sales, SEK M 1,219.0 1,103.0 4,132.2 3,356.1 4,893.9

Organic growth, % 3 4 0 4 2

Acquisition related growth, % 8 24 23 7 14

Operating profit, SEK M 81.0 79.1 359.5 323.2 496.0

Operating margin, % 6.6 7.2 8.7 9.6 10.1

Average number of employees 4,456 4,102 4,568 3,750 3,994

Sweco Norway, Q3

• Organic growth 8%

• Previously delayed government

infrastructure projects starting to come out

on tender

• Solid demand, but slower than normal –

Market in building and energy sectors

impacting billing ratio negatively

• Margin improvements due to volume effect

and cost reductions

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Jul-Sep Jul-Sep Jan-Sep Jan-Sep FY

2014 2013 2014 2013 2013

Net sales, SEK M 419.1 377.6 1,396.5 1,327.9 1,814.5

Organic growth, % 8 8 8 4 6

Acquisition related growth, % 0 2 0 2 3

Operating profit, SEK M 41.5 34.9 121,0 126.5 186.0

Operating margin, % 9.9 9.2 8.7 9.5 10.2

Average number of employees 1,246 1,187 1,241 1,189 1,196

Sweco Finland, Q3

• Solid development in a challenging macro

economic environment: +5% organic growth

• Improved billing ratio compared to last year

• Satisfactory demand in building sector,

especially public buildings/health care

• Lower operating margin mainly driven by

restructuring and losses in project export

• +9 hours vs Q3 2013 (SEK +6 million)

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Jul-Sep Jul-Sep Jan-Sep Jan-Sep FY

2014 2013 2014 2013 2013

Net sales, SEK M 341.9 293.1 1,088.5 946.1 1,292.3

Organic growth, % 5 -5 6 -1 -1

Acquisition related growth, % 6 1 4 8 6

Operating profit, SEK M 26.5 26.1 81.0 60.3 69.5

Operating margin, % 7.7 8.9 7.4 6.4 5.4

Average number of employees 1,878 1,768 1,844 1,792 1,763

Sweco Central Europe, Q3

• Improved operating profit due to higher billing

ratio and successful restructuring in Poland and

Russia

• Continued challenging market – Early signs of

improved market conditions and new round of EU

funds ahead

• Downside risks in general economy and

geopolitical situation

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Jul-Sep Jul-Sep Jan-Sep Jan-Sep FY

2014 2013 2014 2013 2013

Net sales, SEK M 67.7 71.4 194.5 209.8 301.4

Organic growth, % 3 -24 1 -35 -17

Acquisition related growth, % -10 0 -9 0 0

Operating profit, SEK M 4.3 -5.9 6.8 -11.6 -13.5

Operating margin, % 6.3 -8.2 3.5 -5.5 -4.5

Average number of employees 820 925 809 962 949

Market outlook

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• Stable market – Unchanged in Q3 vs. Q2

• Sweco’s markets trailing the general

macro economic development

• Mixed market signals – Positive sentiment

combined with macroeconomic risks