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Tomas Carlsson, CEO
Susanne Lithander, CFO
Q2 2021
July 21, 2021 NCC AB
Tomas CarlssonCEO
July 21, 2021 NCC AB2
July 21, 2021 NCC AB3
Continuing on the improvement trajectory
All contracting unitsbetter than last year
Strong letting in PD
Industry still has potential to improve
Demand continuedstrong
2020 Contracting PDIndustry 2021
4
EBIT Q2
NCC AB
Other & elim
Improved earnings. 30% up compared
to last year
July 21, 2021
Contracting
Earnings and volumes on par with last
year but room for improvement
Industry
No project recognized in profit
Property Development
Other & eliminations
Normal levels
0.0
1.2
1.4 1.4
1.8
2.0 2.0
2.2
2.42.5
2.3
2.52.6
2.9 2.9
3.2
0.5
2.02.1 2.1 2.1
2.8 2.8
3.2
0.0
1.0
2.0
3.0
Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221
Infrastructure
Building Sweden
Building Nordics
5
Contracting: Good margins
*R12 EBIT margin. BA Infrastructure without Road Services
July 21, 2021 NCC AB
%*
July 21, 2021 NCC AB6
Contracting: Strong order backlog
20,8
65
18
,70
0
14
,91
9
17
,02
0
13,3
01
11
,23
7
0
5,000
10,000
15,000
20,000
25,000
Infrastructure Building Sweden Building Nordics
Order backlog Net sales R12
Q1
Q1Q1
2020 Contracting PDIndustry 2021
7
EBIT Q2
NCC AB
Other & elim
Improved earnings. 30% up compared
to last year
July 21, 2021
Contracting
Earnings and volumes on par with last
year but room for improvement
Industry
No project recognized in profit
Property Development
Other & eliminations
Normal levels
2020 Contracting PDIndustry 2021
8
EBIT Q2
• Earnings and volumes on par with
last year
• Positive impact from efficiency
program in asphalt
• Negative impact from loss-making
asphalt unit in Finland – on FY same
level as 2020 expected, but earlier
in the year
NCC AB
Other & elim
Industry
July 21, 2021
2020 Contracting PDIndustry 2021
9
EBIT Q2
NCC AB
Other & elim
Improved earnings. 30% up compared
to last year
July 21, 2021
Contracting
Earnings and volumes on par with last
year but room for improvement
Industry
No project recognized in profit
Property Development
Other & eliminations
Normal levels
2020 Contracting PDIndustry 2021
10
EBIT Q2
No project recognized in profit
NCC AB
Other & elim
July 21, 2021
Property Development
July 21, 2021 NCC AB11
Property Development: Earnings variableProfit recognition when sold and completed – provisions for rental guarantees etc
*
-50
0
50
100
150
200
250
300
350
Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2
EBIT, SEK M
July 21, 2021 NCC AB12
15 ongoing property development projectsOffices in strong locations
Frederiks Plads 2 (75% let)
Next (100% let)
Bettorp (100% let)
Q1 Q2 Q3 Q4
Valle View
Hatsina Office 1 (66% let)
K11 (80% let)
Omega CH (62% let)
Ongoing unsold projects(% completed / % let)
• Bromma Blocks (75/57)
• MIMO (16/31)
• We Land (15/22)
• Brick Studios (48/57)
• Kontorvaerket 1 (19/100)
• Våghuset (49/33)
• Fredriksberg D (42/98)
• Kulma21 (40/5)
Expected profit recognition for sold projects
Q1 Q2 Q3 Q4
20222021
Kineum/Gårda
(86% let)
July 21, 2021 NCC AB13
Strong letting in the quarter24 new contracts in Q2
0
10,000
20,000
30,000
40,000
50,000
60,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2018 2019 2020 2021
Let during quarter, sqm
2020 Contracting PDIndustry 2021
14
EBIT Q2
NCC AB
Other & elim
Improved earnings. 30% up compared
to last year
July 21, 2021
Contracting
Earnings and volumes on par with last
year but room for improvement
Industry
No project recognized in profit
Property Development
Other & eliminations
Normal levels
15
EBIT and margin, Q2
NCC ABJuly 21, 2021
411
483 487
2.8%
3.3%
3.8%
0%0
100
200
300
400
500
Q2 2019 Q2 2020 Q2 2021
2020 Contracting PDIndustry 2021
16
Jan – Jun 2021
Improved earnings in Contracting
No large project in profit recognition
NCC AB
Other & elim
July 21, 2021
Industry better than last year H1
Impact of sale-lease back from 2020
July 21, 2021 NCC AB17
Orders received
15
,50
1
16
,07
0
12
,76
9
13,7
08
15
,45
8
12
,73
0
9,0
26
13
,98
4
14
,25
5
16
,56
8
0
5,000
10,000
15,000
20,000
Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2
Orders received Average
SEK M
1,0
45
4,5
61
2,0
22
1,2
63
1,2
56
1,5
24
1,3
84
3,1
74
1,7
78
1,0
65
0
1,000
2,000
3,000
4,000
5,000
Q12019
Q2 Q3 Q4 Q12020
Q2 Q3 Q4 Q12021
Q2
Orders Received Residential Average
July 21, 2021 NCC AB18
Residential orders received
SEK M
19
Water and sewage projects – orders receivedNCC has competitive edge throughout the water and sewage process
Margretelund treatment plant,
in phase 1
Käppalatreatment plant,
in phase 1
Kungsängsverket, treatment plant
270 MSEK
Gardermoen treatment plant,
240 MSEK
>25 projectswith earlyinvolvementduring the last five years
July 21, 2021 NCC AB
61
,37
0
63
,02
7
61
,65
8
57
,80
0
62
,33
3
59
,48
6
54
,82
1
50
,94
5
56
,09
6
58
,81
6
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2
July 21, 2021 NCC AB20
Order backlog
SEK M
11,4
34
14
,61
0
13
,95
1
18
,23
9
11,7
66
14
,43
1
12
,82
0
14
,90
5
10,1
40
12
,74
5
0
5,000
10,000
15,000
20,000
Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2
21
Net SalesLower orders received last year and no PD project recognized
SEK M
July 21, 2021 NCC AB
• Generally good demand in all markets
• High activity – demonstrated also by strong letting
• Concrete supply – severe impact if Cementa factory in Sweden would close
‒ Assessing the situation together with suppliers and the industry
July 21, 202122
Market
NCC AB
Susanne LithanderCFO
July 21, 2021 NCC AB23
NCC AB24
NCC InfrastructureStrong orders received and earnings up
Q2 Jan-Jun
R12
Jul-Jun Jan-Dec
SEK M 2021 2020 2021 2020 2020/2021 2020
Orders received 6,769 3,253 12,202 8,028 18,254 14,080
Order backlog 20,865 19,760 16,200
Net sales 4,118 4,763 7,604 8,856 17,020 18,271
EBIT 115 105 154 145 366 357
EBIT margin, % 2.8 2.2 2.0 1.6 2.2 2.0
79%(72)
10%
11%
Sweden Sweden
Denmark
Norway
July 21, 2021
Karen Blixen Plads, Copenhagen, Denmark
(13)
(13)
(13)
(15)
25
NCC Building SwedenOn a strong trajectory
Q2 Jan-Jun
R12
Jul-Jun Jan-Dec
SEK M 2021 2020 2020 2020 2020/2021 2020
Orders received 4,203 3,729 7,869 8,187 14,166 14,484
Order backlog 18,700 17,898 17,670
Net sales 3,697 3,464 6,775 6,849 13,301 13,375
EBIT 129 90 219 177 423 381
EBIT margin, % 3.5 2.6 3.2 2.6 3.2 2.9
NCC AB
K11, Stockholm, Sweden
July 21, 2021
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
99
3
1,2
46
62
6
0
200
400
600
800
1,000
1,200
1,400
1,600
Q12018
Q2 Q3 Q4 Q12019
Q2 Q3 Q4 Q12020
Q2 Q3 Q4 Q12021
Q2
Orders Received Residential Building Sweden Average
July 21, 2021 NCC AB26
NCC Building Sweden44% rentals in 2021
SEK M
NCC AB27
Drammen Tingshus, Norway
NCC Building NordicsImproving across markets
Q2 Jan-Jun
R12
Jul-Jun Jan-Dec
SEK M2021 2020 2021 2020 2020/2021 2020
Orders received 2,906 2,179 4,999 5,426 11,449 11,877
Order backlog 14,919 15,178 14,856
Net sales 2,680 3,142 5,100 5,997 11,237 12,134
EBIT 88 62 127 112 358 343
EBIT margin, % 3.3 2.0 2.5 1.9 3.2 2.8
July 21, 2021
43% (34)
13%
44%
Denmark
Norway
Finland
(14)
(52)
July 21, 2021 NCC AB28
NCC Industry: Stone and asphalt volumesVolumes on par with previous years
5,2
16
7,9
99
7,8
80
7,2
44
6,0
78
7,9
08
6,9
38
7,5
84
5,8
96
8,0
92
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Q12019
Q2 Q3 Q4 Q12020
Q2 Q3 Q4 Q12021
Q2
Stone material sold, thousands of tons
166
1,9
04
2,5
18
1,5
12
176
1,9
35
2,5
03
1,6
04
133
1,9
28
0
500
1,000
1,500
2,000
2,500
3,000
Q12019
Q2 Q3 Q4 Q12020
Q2 Q3 Q4 Q12021
Q2
Asphalt sold, thousands of tons
NCC AB29
Vestkapp, Norway
NCC IndustryPositive earnings effect from new organization– negative from Asphalt Finland
Q2 Jan-Jun
R12
Jul-Jun Jan-Dec
SEK M 2021 2020 2021 2020 2020/2021 2020
Orders received 2,984 3,315 5,868 6,235 10,238 10,605
Net sales 3,107 3,139 3,929 4,065 10,732 10,869
EBIT 243 244 -55 -119 450 386
Operating margin % 7.8 7.8 -1.4 -2.9 4.2 3.5
ROCE % 8.5 7.8
July 21, 2021
56% (56)20%
17%
7%
Sweden
Denmark
Norway
Finland
(20)
(14)
(10)
30
NCC Property DevelopmentNo project recognized in profit, investing in future projects
Q2 Jan-Jun
R12
Jul-Jun Jan-Dec
SEK M 2021 2020 2021 2020 2020/2021 2020
Net sales 40 679 1,175 2,255 1,657 2,737
EBIT -25 68 22 391 65 434
Capital employed 6,401 5,337 6,401 6,433
EBIT margin % -62.6 10.1 1.9 17.3 3.9 15.9
ROCE % 1.1 8.0
NCC AB
OOPS, EspooOOPS, Esbo, Finland
July 21, 2021
July 21, 2021 NCC AB31
One new project started in Q2- project ”MIMO” in Sweden. One minor residual project sold with no earnings effect
21 21
18 1817 17
19
15 1514
15 15 15 15
0
5
10
15
20
25
0
50,000
100,000
150,000
200,000
250,000
300,000
Q12018
Q2 Q3 Q4 Q12019
Q2 Q3 Q4 Q12020
Q2 Q3 Q4 Q12021
Q2
Finland
Norway
Denmark
Sweden
Number of ongoing andcompleted projects
Lettable space in ongoing projects, sqm
July 21, 2021 NCC AB32
Strong letting in the quarter24 new contracts in Q2
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 Q4 Q1 Q2
2018 2019 2020 2021
Previously let area, sqm Let during quarter, sqm Remaining unlet area, sqm Let during quarter(% of available unlet area)
Letting also in 14 projects that are already sold and
recognized in profit
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q12019
Q2 Q3 Q4 Q12020
Q2 Q3 Q4 Q12021
Q2
Total letting ratio
Total completion ratio
July 21, 2021 NCC AB33
Letting and completion status
34
Earnings
Q2 Jan-Jun
R12
Jul-Jun Jan-Dec
SEK M 2021 2020 2021 2020 2020/2021 2020
Earnings in segments (all BAs) 550 570 468 706 1,664 1,902
NCC HQ and subsidiaries -29 -47 -63 -92 -139 -168
Internal gains -33 -18 -31 -17 -78 -64
Other group adjustments -20 -26 -38 -173 -100 -235
Road Services 19 3 9 -10 -56 -75
Other & Eliminations total -63 -87 -124 -291 -375 -542
EBIT 487 483 344 414 1,290 1,360
Financial items -11 -20 -20 -41 -59 -80
EBT 476 463 324 373 1,232 1,281
Tax -88 -28 -59 -22 -59 -22
Profit for the period 388 435 265 351 1,173 1,259
NCC ABJuly 21, 2021
Q12019
Q2 Q3 Q4 Q12020
Q2 Q3 Q4 Q12021
Q2
-3
-2
-1
0
1
2
3
4
July 21, 2021 NCC AB35
Cashflow
SEK Bn
R12
Cash flow before financing
Q2 Jan-Jun
R12
Jul-Jun Jan-Dec
SEK M 2021 2020 2021 2020 2020/2021 2020
From operating activities
702 773 733 828 2,641 2,736
From property projects
-812 -259 -779 37 -2,077 -1,262
Other workingcapital
-470 -1,002 217 -350 662 95
Investing activities -192 -116 -348 -101 -709 -463
Cash flow before financing
-772 -605 -177 413 517 1,106
73
-755
-3,048-2,217
-2,226-1,907
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
1,000
2020 Q2 2021 Q2
Leasing liabilities
Pension liability
Corporate net debt
July 21, 2021 NCC AB36
Net debt per Jun 30, 2021
*Corporate net debt excluding pension liabilities and leasing liabilities
**Net debt* / EBITDA
Target < 2.5x
Jun 30, 2021 0.38x
Tomas CarlssonCEO
July 21, 2021 NCC AB37
July 21, 202138
Financial targets
Earnings per share
16.00 SEK 2023
Net debt
< 2.5x EBITDA
Dividend policy
≥ 40%of profit after tax
10.89 SEK R12
0.38x(-0.03x)
Q2 2
021
NCC AB
5.9
5.04.8
4.03.7
3.4
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2015 2016 2017 2018 2019 2020 2030
July 21, 2021 NCC AB39
Climate & Energy – reported in Q1 and Q3 reportsCO2e (ton)/MSEK
Climate & Energy
-60% Ton CO2e
(scope 1 and 2) per SEK M turnover
2030
Climate & Energy
-50%Ton CO2e relative to
bought volumes of the largest scope 3
contributors within NCC*
2030
*Concrete, steel, asphalt and transports
-42%December
2020
Working on
baseline
Target 2,36
NCC AB40
Health & Safety
246 204 257 176 159 131144 125 156 103 86 70
8.8
7.5
9.5
7.06.7
6.1
5.14.6
5.8
4.13.6
3.2
0
1
2
3
4
5
6
7
8
9
10
0
100
200
300
2016 2017 2018 2019 2020 R12 Q22021
2022
LT
IF
No
of
ac
cid
en
ts
No of accidents LTIF1 No of accidents LTIF4 LTIF 1 Day LTIF 4 Days
Health & Safety
LTIF4 3.0
2022
3.2Q2 2021 R12
Target 3.0
*
July 21, 2021
• Strong orders received
• All contracting units perform better than last year
• Industry has potential to improve
• Property development as planned – strong letting
• Demand continues to be strong
NCC AB41
Continuing our improvements – on the right track
July 21, 2021
42 April 28, 2021 NCC AB