Presentation of the Year-end report for 2011.

1. Presentation of the full year report 2011
full-year
14 February, 2012
Mats Wä li
M t Wäppling, President and CEO
P id t d
Bo Jansson, Executive Vice President and CFO
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1

2. Highlights 2011
• Strong growth and higher profitability
+ 2,000 employees
+ 100 MSEK in operating profit
• Operating profit Q4 - best ever
• St
Strong performance S
f Sweco S d
Sweden
• Big improvement Sweco Industry
• Overall good market situation, but
considerable uncertainty
• A
Acquisition FMC Group (Feb 2012)
i iti G (F b
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3. October – December 2011
• Net sales increased by 21 per cent to SEK 1,786.1 million (1,479.0)
• Operating profit improved by 49 per cent to SEK 191.6 million (128.5)
• Operating margin of 10.7 per cent (8.7)
• Profit after tax of SEK 129.0 million (85.8) and earnings
per share of SEK 1.41 (0.94)
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4. Year-end report 2011
• Net sales of SEK 5,987.6 million (5,272.4)
• Operating profit increased to SEK 531.3 million (432.7)
• Operating margin of 8.9 per cent (8.2)
• Profit after tax of SEK 374.8 million (299.9) and earnings
per share of SEK 4.11 (3.31)
• Strong financial position, net receivable of SEK 140.9 million
(240.1)
(240 1)
• Proposed dividend of SEK 3.00 per share (3.00)
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5. Income statement
Q4
Oct-Dec Oct-Dec Full year Full year
SEK M 2011 2010 2011 2010 • Net sales growth 21 %
Net sales
et sa es 1,786.1
, 86 1,479.0
, 90 5,98 6
5,987.6 5,
5,272.4 • Operating profit + 49 %
Other operating income - 0.3 - 3.9
• Operating margin 10,7 %
Other external expenses -481.3 -417.7 -1,505.1 -1,400.2
Personnel costs -1,081.9 -909.8 -3,841.6 -3,349.0
• Strong performance all units
Amortisation/depreciation
p
and impairment -31.3 -23.3 -109.6 -94.4
Operating profit 191.6 128.5 531.3 432.7
Full year
Net financial items -0.2 -1.5 -4.5 -9.0
Profit before tax 191.4 127.0 526.8 423.7
• Net sales growth 14 %
Income tax expense -62.4 -41.2 -152.0 -123.8 • Strong performance Sweco
Profit for the period 129.0 85.8 374.8 299.9 Sweden, Sweco Industry and
Sweco Russia
Operating margin 10.7 8.7 8.9 8.2
• Positive trend billing ratio and
Billing ratio 74.8 74.2 73.9 73.4
prices
Basic EPS 1.41 0.94 4.11 3.31
Diluted EPS 1.41 0.94 4.11 3.28
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6. Operating profit rolling 12 month
SEK M
650
600
550
500
450
400
350
300
250
200
150
100
50
0
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7. Balance sheet
Balance sheet, SEK M 31 Dec 2011 31 Dec 2010 Solid financial position
Goodwill 907.5 734.4
Other intangible assets 88.3 49.3 • Net debt/equity ratio of
Tangible assets 230.8 199.5 -9.4 % ( 16 8) Equity/assets
9 4 (-16.8).
Financial assets 34.5 49.6 ratio of 46.2 % (47.8)
Current assets excl. cash and cash equivalents 1,776.1 1,578.9
Cash and cash equivalents incl. short-term • Disposable cash and unutilised
investments 219.6 376.7 bank overdraft facilities of SEK
Total assets 3,256.8 2,988.4
Equity attributable to owners of the Parent
687.8 million (946.5)
Company 1,493.2 1,419.6
Non-controlling interests 10.5 10.0
• Net interest-bearing receivable
Total equity 1,503.7 1,429.6 SEK 140,9 million (240,1)
Non-current liabilities 192.3 151.3
Current liabilities 1,560.8 1,407.5
• Proposed dividend
Total equity and liabilities 3,256.8 2,988.4 SEK 275 million (273)
Pledged assets - 16.6
Contingent liabilities 207.7 198.4
Equity/assets ratio, % 46.2 47.8
Net interest-bearing receivable, SEK M 140.9 240.1
Net debt/Equity, % -9.4
9.4 -16.8
16.8
Net debt/EBITA -0.2 -0.5
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8. Cash flow
Cash flow statement, SEK M Oct-Dec Oct-Dec Full year Full year
2011 2010 2011 2010
Cash flow from operating activities before
changes in working capital and paid tax 244.5 143.6 657.7 510.7
Paid tax -41.2 -6.4 -138.6 -142.0
Changes in working capital 120.9 111.6 -6.1 -26.9
Cash flow from operating activities 324.2 248.8 513.0 341.8
Cash flow from investing activities -157.6 -43.1 -312.9 -132.5
Cash flow from financing activities -73 6
73.6 -11 1
11.1 -355 9
355.9 -362 5
362.5
Cash flow for the period 93.0 194.6 -155.8 -153.2
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9. Sweco Sweden
Highlights
• Overall good market
• Strong performance full year
- Operating profit up 23 %
- Net sales growth 16 % (organic growth 12 %)
• Continued strong performance Q4
- Operating margin 13.2 %
- Net sales growth 17% ( g
g (organic g
growth 15 %)
)
Oct-Dec 2011 Oct-Dec 2010 Jan-Dec 2011 Jan-Dec 2010
Net sales, SEK M 1,053.2 902.1 3,596.7 3,103.9
Operating profit, SEK M 139.2 106.2 412.3 334.2
Operating margin, % 13.2 11.8 11.5 10.8
# of Employees end of per. 3,202 2,822
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10. Sweco Norway
Highlights
• Overall stable market
• Write-downs in project
• Acquisition of NEAS’s consulting operations
• S
Sweco N
Norway now more th 1 000 employees
than 1,000 l
• Long-term demand in road and rail, hydropower, water supply and
waste water treatment
Oct-Dec 2011 Oct-Dec 2010 Jan-Dec 2011 Jan-Dec 2010
Net sales, SEK M 405.7 324.3 1,401.8 1,296.6
Operating profit, SEK M 45.2 30.0 125.9 130.8
Operating margin, % 11.1 9.3 9.0 10.1
# of Employees end of per. 1,060 920
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11. Sweco Finland
Highlights
• Stable demand for Sweco’s project management services
• Industrial investments showed continued recovery in the fourth quarter
• New tendering methods and new types of project management
assignments secures demand
Oct-Dec 2011 Oct-Dec 2010 Jan-Dec 2011 Jan-Dec 2010
Net sales, SEK M 27.0 24.6 92.4 81.9
Operating profit, SEK M 0.3 1.3 7.3 7.2
Operating margin, % 1.0 5.3 7.9 8.8
# of Employees end of per. 70 64
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12. Sweco Central & Eastern Europe
Highlights
• Increased demand in the Baltics and Bulgaria for services related to
water, environment and energy
• Structural measures in the infrastructure area in Poland
• Continued price pressure in public assignments
Oct-Dec 2011 Oct-Dec 2010 Jan-Dec 2011 Jan-Dec 2010
Net sales, SEK M 86.5 85.1 256.5 278.2
Operating profit, SEK M 5.3 3.5 1.6 7.3
Operating margin, % 6.1 4.1 0.6 2.6
# of Employees end of per. 917 872
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13. Sweco Russia
Highlights
• Public finances are improving steadily
• Improved market Q4 in the infrastructure segment and in the water and
environment area
• Formation of a stronger Russian unit through acquisition of two
infrastructure consulting companies with 264 employees
Oct-Dec 2011 Oct-Dec 2010 Jan-Dec 2011 Jan-Dec 2010
Net sales, SEK M 44.4 7.1 109.7 28.5
Operating profit, SEK M 5.9 1.0 10.3 3.4
Operating margin, % 13.5 14.1 9.4 11.8
# of Employees end of per. 366 93
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14. Sweco Industry
Highlights
• Improved profitability
• Market situation in Finland continues to improve
• Stable development in Norway and Sweden
• I
Increased number of feasibility studies f l
d b ff ibilit t di for large i
investments
t t
Oct-Dec 2011 Oct-Dec 2010 Jan-Dec 2011 Jan-Dec 2010
Net sales, SEK M 210.0 143.0 649.4 536.6
Operating profit, SEK M 14.0 2.5 24.9 1.5
Operating margin, % 6.7 1.7 3.8 0.3
# of Employees end of per. 694 631
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15. Market outlook
Trend Segment Share of net sales
Infrastructure 17% • Overall good market situation
g
Water & Environment 15% • Sweco’s home markets stronger
GDP growth and healthier
Energy Systems
gy y 15% finances than the European
Building Service Systems 14% average
• But considerable uncertainty
Structural Engineering 13%
due to the European debt crisis
Industry 9% • Long-term drivers and trends:
Architecture 9% - Environmental awareness
- Urbanization
Project Management 6% - EU expansion
Geographic IT 2%
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16. Acquisition of FMC Group
FMC Group in brief:
• #5 Engineering consultancy in Finland
• Market leader in structural design
• 1 100 employees
1,100
• 79.7 MEUR in revenues and 9.4 MEUR in
ope a g profit (EBITA) 2010/2011
operating p o ( ) 0 0/ 0
• Offices at 21 locations in Finland
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17. Acquisition of FMC Group
• Becomes the second largest engineering
co su a cy
consultancy in Finland
a d
• Full service offerings in Finland - market
leading competence in all key engineering
disciplines
di i li
• Closing Feb 2012
• Enterprise value EUR 65,8 million
al e 65 8
- Net cash consideration EUR 61 million
- 795,000 Sweco class B treasury shares
• EV/EBITA = 6.9x, EPS accretive
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18. Summary
• Strong growth and increased profitability
• Best operating profit ever Q4
- almost all units improved
• Over all good market situation
- big improvement for Sweco Industry
• Sweco incl. FMC Group
- Net sales SEK 6.7 billion
- 7,400 employees
• No signs of slowdown, but considerable
uncertainty
• Solid platform for long-term profitable growth
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