2016-01-28 NCC AB1

Year-end reportJanuary 1 – December 31, 2015Peter WågströmPresident and CEO NCC

Ann-Sofie Danielsson

Skånegatan, Gothenburg

2016-01-28 NCC AB2

Q4 2015 in brief

Orders receivedSEK 20.4 BN (18.5)

Order backlogSEK 56.6 BN (54.8)

Linköping, Universitetssjukhus

Net salesSEK 22.4 BN (18.8)

Profit after financial itemsSEK 1,562 M (1,017)

2016-01-28 NCC AB3

2015 in brief

Orders receivedSEK 62.5 BN (61.4)

Net salesSEK 62.5 BN (56.9)

Order backlogSEK 56.6 BN (54.8)

Profit after financial itemsSEK 2,656 M (2,234)

Refurbishment, Postgården, Copenhagen

20%Return on shareholders’ equity after tax 26%

2016-01-28 NCC AB4

Financial objectives

1.5 times equity

Indebtedness– net debt restriction 0.5 times

Outcome 2015

2016-01-28 NCC AB5

• Distribute NCC Housing in accordance with the rules of Lex ASEA

• Cash dividend of SEK 3.00 per share for 2015, record date November 7

Dividend proposal

Friedenstrasse, Leonberg

2016-01-28 NCC AB6

Sweden• Strong market in general in all segmentsNorway• Strong market in infrastructureDenmark• Growth in Copenhagen and Aarhus – residential

and other buildings, energy renovationFinland• Challenging market

Trends in Nordic construction market

Cirkus, Skandiascenen, Stockholm

2016-01-28 NCC AB7

Order backlog increased in Q4NCC Construction

05

101520253035404550

Q12011

Q2 Q3 Q4 Q12012

Q2 Q3 Q4 Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4

Orders received, quarter Order backlog Orders received R12 Net sales, R12

SEK BN

2016-01-28 NCC AB8

Stable mix in the portfolioNCC Construction

34%

25%

13%

10%

9%

4%

5%

34%

22%

16%

9%

8%

6%

5%

SEK > 300 M

SEK 100-300 M

SEK 50-100 M

SEK 25-50 M

SEK 10-25 M

SEK 5-10 M

SEK < 5 MQ4 2015

Q4 2014

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4

Project size, orders receivedTotal SEK 12.9 BN

Project size, order backlogTotal SEK 36.3 BN

<5 5-10 10-25 25-50

50-100

100-300

>300

SEK M

2016-01-28 NCC AB9

Geographical distributionOrders received, NCC Construction

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Sweden Denmark Finland Norway

Q4 2014 Q4 2015SEK M

2016-01-28 NCC AB10

Good order intake in other buildings Orders received, NCC Construction

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Civil engineering Residential Other buildings

Q4 2014 Q4 2015SEK M

2016-01-28 NCC AB11

A selection of construction projects in Q4Refurbishment of 493 town houses in Albertslund, DenmarkSEK 610 M

Development and upgrading of Alcoa quay, Mosjøen, NorwaySEK 200 M

School, research, and hospital building in Turku University, Finland SEK 560 M

Children’s hospital, GöteborgSEK 1 BN

2016-01-28 NCC AB12

Passive house – Kiruna

2016-01-28 NCC AB13

Passive house – Kiruna

2016-01-28 NCC AB14

Stone material• Favorable demand‒ Growing construction market‒ Strong in Stockholm and Gothenburg

Asphalt• Favorable demand‒ Weather

Road service• Stable demand‒ Intense competition

Trends in stone material, asphalt and road service

Rydbokrossen

The Nordic market

2016-01-28 NCC AB15

Slightly lower volume of stone material

Q47,650

Q47,285

2014 2015Ohkola quarry, Finland

28,272 27,506

Volumes of stone material sold, thousands of tons

2016-01-28 NCC AB16

Stable asphalt volumes

Q41,572

Q41,585

2014 2015

6,216 6,139

Volumes of asphalt sold, thousands of tons

2016-01-28 NCC AB17

Private customers• Favorable market in general‒ Prices in Sweden are flattening‒ Strong German market‒ Finland – challenging but good demand

for small appartmentsInvestor markets• Strong demand for investor packages

in Germany, Sweden and Finland

Trends in residential markets

Folkboende, Munkedal

2016-01-28 NCC AB18

Q42014

Q42015

DenmarkNorway

2,2992,253

Investor packages

St. PetersburgBaltic Countries

Germany

Finland

Sweden

Gartenstrasse, Berlin

Higher sales to investorsNo. of housing units sold

2016-01-28 NCC AB19

8,778 units in production

Design Quattro, Ytterby

Number of housing units

For private customers For investors TotalDec. 31,

2015Dec. 31,

2014Dec. 31,

2015Dec. 31,

2014Dec. 31,

2015Dec. 31,

2014Ongoing production 6,432 5,952 2,346 1,735 8,778 7,687

Sales rate, % 60 58 94 100 69 67

Sales including bookings, % 66 70 94 100 73 77

Completion rate, % 46 45 69 65 52 50

2016-01-28 NCC AB20

Main starts in three countries

Q42014

Q42015

2,849

2,040

Design Duo, Tyra, Örebro

Investor packagesSt. PetersburgBaltic CountriesGermanyFinlandDenmarkNorwaySweden

No. of housing starts

2016-01-28 NCC AB21

Some of the started housing projects in Q4Kotisiilo, Järvänpää, Finland49 units

Sebastianstrasse, Köln-Niehl, Germany34 units

Lapsu, Riga, Latvia46 units

Gröndal Strand, Stockholm, Sweden93 units

2016-01-28 NCC AB22

Strong ending of 2016Estimated completion

0200400600800

1,0001,2001,4001,6001,8002,0002,2002,4002,600

Q12016

Q2 Q3 Q4 Q12017

Q2 2017 Later

Investor packages

Sweden

Norway

Denmark

Finland

Germany

Baltic countries

St. Petersburg

Portion sold

No. of housing units

273 sold and completed housing units, to be recognized

2016-01-28 NCC AB23

Higher number of unitsEstimated units to complete 2016

Q4 2014Est. completion 2015

Q4 2015Est. completion 2016

4,704

4,261

Treseburger-Strasse, Berlin

Investor packages

St. Petersburg

Baltic Countries

Germany

FinlandDenmarkNorway

Sweden

2016-01-28 NCC AB24

Housing portfolio Housing for private customers, ongoing production Dec. 31, 2015 (Dec. 31, 2014)

Number of housing units Estimated value

34% (29)

11% (8)

22% (36)

4% (2)

22% (17)

5% (4)

2% (4)

Sweden

Finland

St. Petersburg

Baltic Countries

Germany

Denmark

Norway

48% (41)

8% (7)

5% (11)

1% (1)

26% (20)

8% (12)

4% (8)

Sweden

Finland

St. Petersburg

Baltic Countries

Germany

Denmark

Norway

2016-01-28 NCC AB25

Investor market• High interest in the Nordic market• Finland ‒ Cautious investors

Rental market• Strong demand in Sweden• Stable in Denmark• Increased vacancies in Norway• Weak demand in Finland

Trends in Nordic property market

Portland Towers, Copenhagen

2016-01-28 NCC AB26

Torsplan 2, office property in Hagastaden, Stockholm• Company transaction at a value of approx. SEK 1.6 BN• Total leasable floor space approx. 23,000 sqm.• Positive impact on earnings in the first quarter of 2017

Office property in Hyllie in Malmö, Sweden• Underlying property value approx. SEK 320 M• Total leasable space 7,300 sqm.• Positive impact on earnings in the second quarter of 2016

Office projects sold in Q4

Torsplan 2, Stockholm

2016-01-28 NCC AB27

Project starts in Q4Project Type Location Lettable area, sqm Letting ratio

Tornby 2 Retail Linköping, Sweden 9,500 48%

Önskebrunnen Logistics Upplands-Bro, Sweden 13,800 0%

Zenit 2 Office Aarhus, Denmark 3,600 0%

Önskebrunnen, Upplands-Bro

2016-01-28 NCC AB28

Good lease in the quarter – 16,300 sqmLeased floor space, sqm

0

50,000

100,000

150,000

200,000

250,000

300,000

2012Q1

Q2 Q3 Q4 2013Q1

Q2 Q3 Q4 2014Q1

Q2 Q3 Q4 2015Q1

Q2 Q3 Q4

Leasable area beginning of quarter

Leased in quarter

Previous leased area

2016-01-28 NCC AB29

Property portfolioLeasable space, sqm, in ongoing or completed projects not recognized in profit

0

50,000

100,000

150,000

200,000

250,000

300,000

Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4

Sweden

NorwayDenmarkFinland

14 No. of projects

22

25

17

24

1617

1716

1514 14

2016-01-28 NCC AB30

Ann-Sofie Danielsson

Folkboende, Munkedal

2016-01-28 NCC AB31

Q4 2015 in brief

1,1401,332

1,547

1,101

1,650

2011Q4

2012Q4

2013Q4

2014Q4

2015Q4

Operating profit, SEK M

Folkboende Vapelhöjden

• Best Q4 ever• Best EBIT ever• Very strong cash flow

2016-01-28 NCC AB32

Income statementSEK M

Oct.-Dec.2015

Oct.-Dec.2014

Jan.-Dec.2015

Jan.-Dec.2014

Net sales 22,412 18,760 62,495 56,867

Gross profit 2,759 1,999 6,486 5,691Selling and administrative expenses -1,052 -923 -3,405 -3,117Cost ratio Other

4.6%-57

4.9%24

5.4%-42

5.5%31

Operating profit 1,650 1,101 3,039 2,604Financial items -89 -84 -383 -370

Profit after financial items 1,562 1,017 2,656 2,234Tax -320 -140 -536 -396Tax rate 20.5% 13.8% 20.2% 17.7%Profit for the period 1,241 878 2,120 1,838

SEK MOct.-Dec.

2015Oct.-Dec.

2014Jan.-Dec.

2015Jan.-Dec.

2014NCC Construction Sweden 279 263 743 640NCC Construction Denmark 104 99 321 281NCC Construction Finland 62 28 159 111NCC Construction Norway 24 44 -41 146NCC Roads 126 186 349 459NCC Housing 998 493 1,368 949NCC Property Development 201 43 423 169Other and eliminations -144 -55 -282 -151Operating profit 1,650 1,101 3,039 2,604

2016-01-28 NCC AB33

Operating profit/loss per business area

SEK MOct.-Dec.

2015Oct.-Dec.

2014Jan.-Dec.

2015Jan.-Dec.

2014NCC Construction Sweden 279 263 743 640NCC Construction Denmark 104 99 321 281NCC Construction Finland 62 28 159 111NCC Construction Norway 24 44 -41 146NCC Roads 126 186 349 459NCC Housing 998 493 1,368 949NCC Property Development 201 43 423 169Other and eliminations -144 -55 -282 -151Operating profit 1,650 1,101 3,039 2,604

2016-01-28 NCC AB34

Operating profit/loss per business area

Oct-Dec. 2015

Oct.-Dec. 2014

NCC HQ and International Projects -133 -68Competition infrigment fee -82

Internal gains 56 8

Group adjustments 15 6

Total -144 -55

0

1

2

3

4

5

0

100

200

300

400

500

Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4

02,0004,0006,0008,000

10,00012,00014,00016,000

Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4

2016-01-28 NCC AB35

NCC Construction

SEK M %Operating profit Operating margin

SEK M Orders received Net sales

• Net sales SEK 12,023 M (11,637)

• Higher operating profitSEK 469 M (433)

• Operating margin3.9% (3.7%)

0600

1,2001,8002,4003,0003,6004,2004,800

Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4

-60-40-200204060

-600-400-200

0200400600

Q3 Q4 Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4

2016-01-28 NCC AB36

NCC Roads

SEK M Operating profit/loss Operating margin

SEK M Net sales

%

Quarter 4

• Operation result 126 (186) MSEK

• Closing plants and cost for reorganization -81 MSEK

01,0002,0003,0004,0005,0006,0007,0008,000

Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4

2016-01-28 NCC AB37

NCC HousingNet sales

0

3

6

9

12

15

0

200

400

600

800

1,000

Q4 Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4Oberer-Schuetzenrain, Leonberg

SEK M

SEK M Operating profit Operating margin %

2016-01-28 NCC AB38

Higher number of profit recognized units

Number of housing units Oct.-Dec.2015

Oct.-Dec.2014

Sweden 446 147

Denmark 117 125

Finland 236 360

Baltic countries 63 103

St. Petersburg 864 477

Norway 9 10

Germany 452 506

Total, private customers 2,187 1,728

Investor packages 987 708

Total 3,174 2,436

Kv Trevnaden, Malmö

2016-01-28 NCC AB39

NCC Property Development

0

100

200

300

400

500

Q4 Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4

0500

1,0001,5002,0002,5003,0003,500

Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4

Net salesSEK M

SEK M Operating profit/loss

Profit recognized units Q4

• Ullevi Park 4, Gothenburg, Sweden (office)

• Hälsobrunnen, Upplands-Bro, Sweden (logistics)

• Alberga D, Espoo, Finland (office)

2016-01-28 NCC AB40

Balance sheetSEK BN

11.4 13.6

7.37.3

13.312.3

5.1 4.41.9 1.8

Dec. 312014

Dec. 312015

Goodwill

Property projects

Housing projects

Accounts receivable andreceivable from property sales

Other assets

39.0 39.4

Weidenpesch, Köln

2016-01-28 NCC AB41

Strong cash flow

Mimer, Stockholm

SEK MOct.-Dec.

2015Oct.-Dec.

2014Jan.-Dec.

2015Jan.-Dec.

2014From operating activities 2,204 1,427 3,436 2,273From property projects 483 481 671 145From housing projects 1,887 1,060 175 -761Other working capital -18 634 -222 -313Investing activities -150 -175 -730 -771Cash flow before financing 4,405 3,428 3,331 574

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4

2016-01-28 NCC AB42

Net indebtednessNet indebtedness excl. tenant housing and housing associations, SEK M

Net indebtedness, incl. tenant housing and housing associations, SEK M

Debt/equity ratio, timesPension liability, IAS 19, SEK M

43

Shareholders decision on dividend at Annual general meeting April 12, 2016

Spin-off Housing

2016-01-28 NCC AB

44

NCC without Housing2015

53,116

13,069

NCC Housing

Net sales

1,678

1,368

NCC Housing

EBIT2,044

1,287

NCC Housing

Cash flowSEK M

2016-01-28 NCC AB

45

Capital structure NCC Q4 2015

39.4

19.1

Total assets Capital employed

SEK BN

2016-01-28 NCC AB

46

Capital structure NCCIf spin off Q4 2015

24.1

5.0

0.4

Total assets Operating capital employed

Equity

Net debt

SEK BN

2016-01-28 NCC AB

Equity/assets ratio21%

47

Capital structure HousingIf spin off Q4 2015

15.3

4.7

3.11.1

Total assets Operating capital employed

Equity

Net debt 4.2, where of loans in Finnish housing companies and Swedish tenant owner associations, 3.1

SEK BN

2016-01-28 NCC AB

Equity/assets ratio31%

48

Financial objectives NCC Housing

Return on CapitalEmployed

10-15%

NCC Housing’s dividend policy is to distribute yearlyat least 40% of after-tax profit to the shareholders

Equity/assets ratio

>30%

2016-01-28 NCC AB

2016-01-28 NCC AB49

Joachim HallengrenPresident NCC Housing

Strong sales and EBIT development continues

0

200

400

600

800

1,000

1,200

1,400

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2011 2012 2013 2014 2015

EBIT margin

Net sales, SEK M EBIT, SEK M

8.0% 9.7 % 6.7% 10.5%9.3%

2016-01-28 NCC AB50

2016-01-28 NCC AB51

• Focus on affordable housing in the Nordics, Germany, St. Petersburg and Baltic Countries

• Efficient capital allocation and grow our German operations

• Cost efficiency• Increase level of industralization

and standardization• Increasing differentiation through

customer focus

Strategy New Housing

Bahrfeldtstrasse, Berlin

2016-01-28 NCC AB52

• Strong market positions through deep local knowledge• Housing operates in markets with long-term,

favorable trends• Geographic diversification enables efficient

use of capital• Diversified offer reduces risk• Stable growth with healthy profitability• Attractive portfolio of development rights

and projects• Good customer insight

Strengths and competitiveadvantages

Musterwohnung, Langen

2016-01-28 NCC AB53VDC,Denmark

2016-01-28 NCC AB54

• Best result ever• Strong development for NCC Housing• Construction business in the right direction• Mixed result from industrial business• Improved result in Property Development• Strong cash flow• Good foundation for 2016

Summary 2015

Kiruna

2016-01-28 NCC AB55

2016-01-28 NCC AB56

Contact information

IR Manager Johan BergmanTel: +46 (0)8-585 523 53, +46 (0)70-354 80 35johan.bergman@ncc.se