SWECO AB (publ) Interim report January-March 2016

Strong result through synergies and increased billing ratio
January – March 2016

  · Net sales increased to SEK 4,018 million (2,465), acquired growth was 64 per
cent
  · EBITA excluding extraordinary costs increased to SEK 263 million (229),
margin 6.6 per cent (9.3)
  · EBITA remained unchanged at SEK 228 million (228), margin 5.7 per cent (9.3)
  · EBIT decreased to SEK 205 million (216), margin 5.1 per cent (8.8)
  · Profit after tax decreased to SEK 148 million (160), corresponding to SEK
1.24 per share (1.70)
  · Net debt increased to SEK 2,033 million (1,252)
  · Net debt/EBITDA increased to 2.1 times (1.3). Net debt/EBITDA pro forma and
excl. extraordinary items was 1.5 times

Comments from President and CEO Tomas Carlsson:

- This is a strong result. We are integrating Grontmij and capturing synergies
while also improving the billing ratio throughout the group. Synergies and
increased billing ratio contributed with approximately SEK 76 million to EBITA,
compared with last year’s pro-forma. At the same time, we are facing significant
head-wind in the quarter due to negative calendar effects with 10 fewer working
hours. This is negatively impacting EBITA with SEK 78 million compared to last
year’s pro forma. Still we are able to essentially offset the negative calendar
effect through synergies and increased billing ratio.

- Sweco is the leading engineering and architecture consultancy in Europe since
the acquisition of Grontmij on 1 October 2015. The integration is progressing
well and in several areas faster than the original plan. The rebranding has been
completed and all former Grontmij-countries are operating under the Sweco name.
We remain confident that we will achieve the financial targets communicated at
the announcement of the acquisition.

- During the quarter we acquired Ludes, a German architecture and project
management consultancy with around 100 employees. The acquisition is in line
with Sweco’s strategy of leveraging our new footprint in Northern Europe for
bolt-on acquisitions, similar to the model we have successfully applied in the
Nordic market.

- Overall, the market for Sweco’s services is good and the development is
stable. The situation varies between markets. The Swedish market is strong,
while the Norwegian market is good but has weakened. The markets in Denmark,
Western Europe and Central Europe are in general good and are developing
positively. The markets in Finland and in the Netherlands remain challenging.
For more information, please contact:

Tomas Carlsson, President and CEO, phone:  +46 8 695 66
60  (http://tools.euroland.com/tools/Pressreleases/GetPressRelease/?ID=3022796&l
a 
ng=en-GB&companycode=s-swec&v=s
-swec_reportstool) (http://tools.euroland.com/tools/Pressreleases/GetPressReleas
e 
/?ID=2967778&lang=en-GB&companycode=s-swec&v=s-swec_reports)/  +46 70 552 92
75,   tomas.carlsson@sweco.se

Jonas Dahlberg, CFO, phone:  +46 8 695 63
32  (http://tools.euroland.com/tools/Pressreleases/GetPressRelease/?ID=3022796&l
a 
ng=en-GB&companycode=s-swec&v=s
-swec_reportstool) (http://tools.euroland.com/tools/Pressreleases/GetPressReleas
e 
/?ID=2967778&lang=en-GB&companycode=s-swec&v=s-swec_reports)/  +46 70 347 23
83,   jonas.dahlberg@sweco.se

Åsa Barsness, Communications Director,  +46 8 695 66
40  (http://tools.euroland.com/tools/Pressreleases/GetPressRelease/?ID=3022796&l
a 
ng=en-GB&companycode=s-swec&v=s
-swec_reportstool) (http://tools.euroland.com/tools/Pressreleases/GetPressReleas
e 
/?ID=2967778&lang=en-GB&companycode=s-swec&v=s-swec_reports)/ 46 70 382 36
86,   asa.barsness@sweco.se
Sweco plans and designs tomorrow’s communities and cities. Our work produces
sustainable buildings, efficient infrastructure and access to electricity and
clean water. With 14,500 employees in Europe, we offer our customers the right
expertise for every project. We carry out assignments in 70 countries annually
throughout the world. Sweco is Europe’s leading engineering and architecture
consultancy, with sales of approximately SEK 16.0 billion (pro forma 2015). The
company is listed on Nasdaq Stockholm.

Sweco is required to disclose the above information under the provisions of the
Securities Market Act and/or the Financial Instruments Trading Act. The
information was submitted for publication on 11 May 2016 at 07:20 CET.