Q3 2020

Flora school, Skellefteå

2

Tomas CarlssonCEO

2020-11-063

Orders receivedA low quarter in the contracting BAs with different underlying drivers

12

73

8

17

75

0

15 5

01

16

07

0

12

76

9

13

70

8

15

45

8

12 7

30

9 0

26

0

5 000

10 000

15 000

20 000

Q3 2018 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3

SEK M

2020-11-064

Orders receivedxx

4 4

66

3 6

87

2 6

83

2 9

22

2 4

38

1 2

47

12

73

3

8 6

34

13

07

9

10

35

3

10

62

5

6 6

74

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

Infrastructure Building Sweden Building Nordics

Q3 2019 Q3 2020 Jan-Sep 2019 Jan-Sep 2020

Built exceptionalbacklog in 2019 –country variationQuarterly

variation - strong in Q1 and Q2

Prudent tendering especially in Norwayand more early involvement than usual

2020-11-065

Order backlog vs net salesAbove net sales in all contracting BAs

22 0

02

16

71

7

16

69

7

18

14

1

17 6

02

13

67

1

0

5 000

10 000

15 000

20 000

25 000

Infrastructure Building Sweden Building Nordics

Order backlog Sep 2019 Order backlog Sep 2020 Net sales R12, Sep 2020

17,629

13,848

12,277

6

Order backlog

56

58

7

56

83

7

61 3

70

63

02

7

61

65

8

57

80

0

62

33

3

59

48

6

54

82

1

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

Q3 2018 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3

2020-11-06

SEK M

• Ylva Lagesson appointed as Head of business area Industry

• Susanne Lithander will take on the role as Head of the group function Development & Operations Services (DOS) in addition to being CFO and Head of Finance

• Jyri Salonen, former head of business area Industry will leave NCC

7

New roles for members of the Executive Team

2020-11-06

8

• Division Asphalt: New and leaner organization

‒ Strong potential in Sweden, Norway and Denmark

‒ Expected to reduce annual cost base with approx. SEK 50 M from 2021

‒ Restructuring cost of approx. SEK 65 M expected in Q4/Q1

• Strategic review of exit options for Asphalt Finland

‒ Smaller, no strategic fit and loss-making

‒ Turnaround since 2018 has not delivered expected results

• Division Hercules

‒ Move to BA Infrastructure – better strategic fit with the contracting business

BA Industry: Action plan to unlock more potential

2020-11-06

9

• Harri Savolainen, Head of Purchasing, will leave NCC for another opportunity

Other changes

2020-11-06

14

26

9

17 8

32

11

43

4

14

61

0

13

95

1

18

23

9

11

76

6

14

43

1

12

82

0

0

5 000

10 000

15 000

20 000

Q3 2018 Q4 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3

10

Net SalesBuilding Sweden lower than last year and no property sale in PD this quarter

SEK M

2020-11-06

11

Operating profit on par in the quarter

-1 108

568 567

-1 200

-1 000

-800

-600

-400

-200

0

200

400

600

800

1 000

Q3 2018 Q3 2019 Q3 2020

SEK M

Operating margin

Q3 2020 4.4%

Q3 2019 4.1%

R12, Sep 2020 2.9%

-1 020

626

981

-1200

-1000

-800

-600

-400

-200

0

200

400

600

800

1000

Jan-Sep 2018 Jan-Sep 2019 Jan-Sep 2020

2020-11-06

NCC AB12

Health & Safety

407

315300

241

202

246

204

257

176 172185

175

14.4

10.910.6

8.1

7.2

8.8

7.5

9.5

7.0 7.07.5

7.2

0

2

4

6

8

10

12

14

16

0

100

200

300

400

500

2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020, R12 Q2 2020, R12 Q3 2020, R12

Number of accidents LTIF 1 Day

LTIF Group 1 Day

2020-11-06

13

Health & Safety

144125

156

103 100 106 97

5.14.6

5.8

4.1 4.0 4.3 4.0

0

2

4

6

8

10

12

14

16

0

100

200

300

400

500

2016 2017 2018 2019 Q1 2020, R12 Q2 2020, R12 Q3 2020, R12

LTIF Group 4 Days

Number of accidents LTIF 4 Days

2020-11-06

14

10th Awareness Day, 2 September 2020

Hospital Nordsjælland, Denmark Venjar Eidsvoll, Norge

2020-11-06

• Strong underlying demand but potential longterm negative impact from economicdownturn due to corona pandemic still hard to assess

• Signs of slower decision processes mainly on the commercial property market mayhave impact going forward

• Ongoing projects not impacted by corona pandemic to date

15

Market: Signs of slowdown in some segments

2020-11-06

• Margins and earnings better or on par with last year

‒ In all contracting business areas and in Industry

‒ Property Development had no property sale this quarter

• Strong cash flow

• Different drivers behind low orders received

‒ Prudent tendering, more early involvement and quarterly variation

• Order backlog higher than net sales in all BAs

• New Head of business area Industry and a plan to boostperformance

16

In summary: Stable earnings, good cash flow and order backlog in shape

Proposed dividend

2.50 SEK per share

EGM Nov, 12

2020-11-06

17

Susanne LithanderCFO

75% (74)

7% (7)

18% (19)

Jan-Sep 2020

Net Sales

Norway

Denmark

Sweden

18

NCC InfrastructureBetter project portfolio lifts margins – orders received lower

Q3 Jan-Sep

R12

Oct 19-

Sep 20 Jan-Dec

SEK M 2020 2019 2020 2019 2019/2020 2019

Orders received 2,922 4,466 10,353 12,733 14,221 16,601

Order backlog 18,141 22,002 18,141 22,002 18,141 20,389

Net sales 3,956 4,213 12,258 12,054 17,629 17,425

EBIT 110 46 240 135 318 212

EBIT margin, % 2.8 1.1 2.0 1.1 1.8 1.2

NCC Road Services

Orders received 404 388 1,522 1,505 1,634 1,617

Order backlog 2,824 3,481 2,824 3,481 2,824 2,816

Net sales 455 592 1,413 1,889 2,148 2,624

EBIT -31 4 -41 5 -26 20

2020-11-06

• Road Services Sweden and Finland to Mutares – closed

• Divestment of Road Services Denmark to Arkil in process

• Road Services Norway

‒ Reported in the Other and eliminations segment after closing of above divestments

‒ Operationally managed by BA Infrastructure in Norway

19

Divestment Road Services

2020-11-06

20

NCC Building SwedenMargins improving and strong order backlog

Q3 Jan-Sep

R12

Oct 19-

Sep 20 Jan-Dec

SEK M 2020 2019 2020 2019 2019/2020 2019

Orders received 2,438 3,687 10,625 8,634 14,732 12,741

Order backlog 17,602 16,717 17,602 16,717 17,602 16,561

Net sales 2,735 3,192 9,583 10,587 13,848 14,851

EBIT 78 75 255 261 359 364

EBIT margin, % 2.9 2.4 2.7 2.5 2.6 2.5

School in Helsingborg

2020-11-06

32

0

1 4

32

211

55

2

76

5

97

1

1 2

37

81

3

43

5

1 0

66

1 2

31

0

200

400

600

800

1 000

1 200

1 400

1 600

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2018 2019 2020

Orders Received Residential Average

21

NCC Building SwedenResidential orders received above average – >70% rentals in 2020

SEK M

2020-11-06

22

NCC Building NordicsStable quarter with some country variations – strong order backlog

Q3 Jan-Sep

R12

Oct 19-

Sep 20 Jan-Dec

SEK M 2020 2019 2020 2019 2019/2020 2019

Orders received 1,247 2,683 6,674 13,079 9,674 16,080

Order backlog 13,671 16,694 13,671 16,694 13,671 15,807

Net sales 2,795 2,914 8,792 8,284 12,277 11,769

EBIT 50 53 162 132 261 231

EBIT margin, % 1.8 1.8 1.8 1.6 2.1 2.0

36%(31)

14%(16)

50%(53)

Jan-Sep 2020

Net Sales

Finland

Norway

Denmark

2020-11-06

23

NCC Industry: Stone and asphalt volumesAsphalt volumes on par, stone volumes somewhat lower

7 3

47

7 5

39

5 2

16

7 9

99

7 8

80

7 2

44

6 0

78

7 9

08

6 9

38

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

Q32018

Q4 Q12019

Q2 Q3 Q4 Q12020

Q2 Q3

Stone material sold, thousands of tons

2 4

60

1 7

88

166

1 9

04

2 5

18

1 5

12

176

1 9

35

2 5

03

0

500

1 000

1 500

2 000

2 500

3 000

Q32018

Q4 Q12019

Q2 Q3 Q4 Q12020

Q2 Q3

Asphalt sold, thousands of tons

2020-11-06

24

NCC IndustryDelivering on the same level as last year

Q3 Jan-Sep

R12

Oct 19-

Sep 20 Jan-Dec

SEK M 2020 2019 2020 2019 2019/2020 2019

Orders received 2,399 2,450 9,489 9,812 12,529 12,852

Order backlog 3,402 3,631 3,402 3,631 3,402 2,967

Net sales 4,101 4,311 8,969 9,296 12,643 12,971

EBIT 395 387 290 324 478 511

Operating margin % 9.6 9.0 3.2 3.5 3.8 3.9

ROCE % 8.3 9.0

55%(54)

19%(19)

16%(18)

10% (9)

Jan-Sep 2020

Net Sales

Finland

Norway

Denmark

Sweden

2020-11-06

25

NCC Property DevelopmentNo property sale this quarter

Q3 Jan-Sep

R12

Oct 19-

Sep 20 Jan-Dec

SEK M 2020 2019 2020 2019 2019/2020 2019

Net sales 18 335 2,274 1,067 4,263 3,056

EBIT -11 19 380 39 654 313

Capital employed 5,793 6,107 5,793 6,107 5,793 4,935

EBIT margin % -58.5 5.6 16.7 3.7 15.3 10.2

ROCE % 12.2 6.2

Masthuggskajen

2020-11-06

26

One new project started in Q3Project ”Fredriksberg D” in Finland – 73% let

21 21

18 1817 17

19

15 1514

15

0

5

10

15

20

25

0

50 000

100 000

150 000

200 000

250 000

300 000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2018 2019 2020

Finland

Norway

Denmark

Sweden

Number of ongoing andcompleted projects

Lettable space, sqm

2020-11-06

27

Letting on same level as previous quartersImpacted by corona pandemic uncertainty – but still activity in the market

0%

10%

20%

30%

40%

50%

0

50 000

100 000

150 000

200 000

250 000

300 000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2018 2019 2020

Previously let area, sqm Let during quarter, sqm Remaining unlet area, sqm Let during quarter(% of available unlet area)

2020-11-06

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2018 2019 2020

Letting ratio

28

Letting and completion statusLetting higher than completion ratio in the property development

2020-11-06

29

Earnings

Q3 Jan-Sep

R12

Oct 19-Sep 20 Jan-Dec

SEK M 2020 2019 2020 2019 2019/2020 2019

Earnings in segments (all BAs) 592 583 1,288 896 2,043 1,651

NCC HQ and subs 17 -7 -75 -149 -130 -204

Internal gains -35 16 -52 -39 -37 -24

Other Group Adjustments -7 -24 -180 -82 -226 -126

Other & Eliminations total -25 -15 -307 -269 -393 -354

EBIT 567 568 981 626 1,651 1,296

Financial items -19 -32 -60 -81 -91 -112

EBT 548 536 922 545 1,560 1,184

Tax -61 -77 -83 -78 -313 -309

Profit for the period 488 459 839 467 1,246 875

2020-11-06

Strong cashflow

Q3 Jan-Sep

R12

Oct 19-

Sep 20 Jan-Dec

SEK M 2020 2019 2020 2019 2019/2020 2019

From operating activities

792 947 1,579 1,326 3,027 2,774

From property projects

-595 -714 -558 -1,514 -209 -1,165

Other workingcapital

-121 -914 -430 -1,328 1,503 605

Investing activities -140 -132 -241 -547 -396 -701

Cash flow before financing

-63 -814 350 -2,063 3,925 1,512

SEK Bn

30

Q32018

Q4 Q12019

Q2 Q3 Q4 Q12020

Q2 Q3

-3

-2

-1

0

1

2

3

4

R12

Cash flow before financing

2020-11-06

-3 251-2 738

-1 852-2 139

-3 021

-175

-8 500

-7 500

-6 500

-5 500

-4 500

-3 500

-2 500

-1 500

-500

500

2019 Q3 2020 Q3

Corporate net debt

Leasing liabilities (incl IFRS 16)

Pension liability

31

Net debt per Sep 30

*Corporate net debt excluding pension liabilities and leasing liabilities according to IFRS16 Leasing

**

Net debt* / EBITDA

Target < 2.5x

R12 0.08x

2020-11-06

32

Tomas CarlssonCEO

• Digital EGM – voting digital or by mail

• More information on www.ncc.com/ir

33

EGM Nov 12, 2020

Proposed dividend

2.50 SEK per share

2020-11-06

34

Welcome to

Capital Market Meeting, 18 November

For more informationwww.ncc.com/ir

2020-11-06

• Margins and earnings better or on par with last year

‒ In all contracting business areas and in Industry

‒ Property Development had no property sale this quarter

• Strong cash flow

• Different drivers behind low orders received

‒ Prudent tendering, more early involvement and quarterly variation

• Order backlog higher than net sales in all BAs

35

In summary: Stable earnings, good cash flow and order backlog in shape

2020-11-06

36 2020-11-06 NCC AB