Interim report January - June 2012

1. Q2 2012 Presentation
17 July, 2012
Mats Wäppling, President and CEO
Jonas Dahlberg, CFO
Bo Jansson, Senior Vice President
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2. Highlights H1 2012
• Continued strong growth and solid profitability
• Sweco Sweden and Sweco Finland best
performers
• Underlying margin improvement when adjusting
for calendar effect
• Increased demand during the period, but
increased probability for slowdown in some
segments
• Well positioned for continued profitable growth
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3. Interim report April − June 2012
• Net sales amounted to SEK 1,943.1 million (1,506.7).
• Operating profit of SEK 149.6 million (128.0)
• Operating margin of 7.7 per cent (8.5)
• Profit after tax of SEK 121.5 million (92.5) and earnings per share
of SEK 1.32 (1.01)
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4. Interim report January − June 2012
• Net sales amounted to SEK 3,852.7 million (2,927.4)
• Operating profit of SEK 380.9 million (264.6)
• Operating margin of 9.9 per cent (9.0)
• Profit after tax of SEK 286.0 million (189.6) and earnings per share
of SEK 3.11 (2.08)
• Net debt of SEK 509.0 MSEK (74.6)
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5. Income statement
Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul 2011- Full year April - June
SEK M 2012 2011 2012 2011 Jun 2012 2011 • Net sales growth +29%
Net sales 1,943.1 1,506.7 3,852.7 2,927.4 6,912.9 5,987.6 – of which organic 10%
Other external expenses -459.2 -358.2 -876.8 -684.0 -1,697.9 -1,505.1 and acquired 19%
Personnel costs -1 297.2 -994.2 -2,523.6 -1,929.5 -4,435.7 -3,841.6 • Operating profit +17%
Amortisation/depreciation • Best performer
and impairment losses -37.1 -26.3 -71.4 -49.3 -131.7 -109.6 Sweco Finland
Operating profit 149.6 128.0 380.9 264.6 647.6 531.3
• Working hours 462 (471)
Net financial items 2.7 -1.8 -3.5 -3.9 -4.1 -4.5
Profit before tax 152.3 126.2 377.4 260.7 643.5 526.8
Income tax expense -30.8 -33.7 -91.4 -71.1 -172.3 -152.0 Jan - June
Profit for the period 121.5 92.5 286.0 189.6 471.2 374.8 • Net sales growth 32%
– of which organic 14%
Operating margin 7.7 8.5 9.9 9.0 9.4 8.9
and acquired 18%
Billing ratio 75.1 74.0 74.5 73.5 74.4 73.9
• Operating profit +44%
Basic EPS 1,32 1,01 3.11 2.08 5.14 4.11 • Best performer
Diluted EPS 1,32 1,01 3.11 2.08 5.14 4.11 Sweco Sweden
• Working hours 972 (973)
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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
Quarterly profit Rolling 12 months
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7. Balance sheet
SEK M 31 Jun 2012 31 Jun 2011 31 Dec 2011 • Net debt/equity ratio
Goodwill 1,453.4 798.0 907.5
of 33.1% (5.5)
Other intangible assets 168.3 85.8 88.3
Tangible assets 257.8 214.9 230.8
Financial assets 43.0 64.7 34.5 • Equity/assets ratio of
Current assets excl. 31.7% (42.1)
cash and cash equivalents 2,594.9 1,927.0 1,776.1
Cash and cash equivalents 335.9 155.9 219.6
• Disposable cash and
Total assets 4 853.3 3,246.3 3,256.8
Equity and reserves attributable to equity
unutilized bank overdraft
holders in the Parent Company 1,522.2 1,355.6 1,493.2 facilities of SEK 813.8
Non-controlling interest 18.1 9.6 10.5 million (646.0)
Total equity 1,540.3 1,365.2 1,503.7
Long-term liabilities 851.7 170.5 192.3
• Net debt SEK 509.0
Current liabilities 2,461.3 1,710.6 1,560.8
million (74.6)
Total equity and liabilities 4,853.3 3,246.3 3,256.8
Pledged assets 28.4 16.8 -
Contingent liabilities 225.8 195.8 207.7
Equity/assets ratio, % 31.7 42.1 46.2
Net interest-bearing liabilities, SEK M -509.0 -74.6 140.9
Net debt/Equity, % 33.1 5.5 -9.4
Net debt/EBITDA, % 0.7 0.1 -0.2
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8. Cash flow
SEK M Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul 2011- Full year • Strong operating cash flow
2012 2011 2012 2011 jun 2012 2011 and solid cash conversion
Cash flow from operating ratio
activities before changes in
working capital and paid tax 176.5 151.9 428.4 310.5 775.6 657.7
• Cash consideration of SEK
Paid tax -50.1 -59.3 -142.9 -119.8 -161.7 -138.6
528,3 million paid for
Changes in working capital 22.3 -11.9 -57.2 -110.7 47.4 -6.1
acquisitions during H1,
Cash flow from operating mainly related to acquisition
activities 148.7 80.7 228.3 80.0 661.3 513.0 of FMC
Cash flow from investing
activities -69.1 -80.2 -571.8 -122.2 -762.5 -312.9
• Dividends of SEK 274,0
Cash flow from financing
million paid during Q2
activities -171.2 -200.6 464.6 -182.2 290.9 -355.9
Cash flow for the period -91.6 -200.1 121.1 -224.4 189.7 -155.8
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9. Sweco Sweden
Highlights
• Strong organic growth
• Best performer January − June, operating margin 11.4%
• Overall demand increase throughout the period
• Increased probability for slower development in some segments
Apr-Jun 2012 Apr-Jun 2011 Jan-Jun 2012 Jan-Jun 2011
Net sales, SEK M 1,013.8 923.3 2,044.7 1,793.0
Operating profit, SEK M 94.7 113.6 233.2 219.7
Operating margin, % 9.3 12.3 11.4 12.3
# of Employees end of period 3,329 3,055
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10. Sweco Norway
Highlights
• Strong growth and profitability improvement
• Operating profit up 64% January − June
• Strong growth Q2: +29%
• Continued strong market and improved billing ratio
Apr-Jun 2012 Apr-Jun 2011 Jan-Jun 2012 Jan-Jun 2011
Net sales, SEK M 438.2 339.5 910.7 688.9
Operating profit, SEK M 20.2 16.4 88.6 54.0
Operating margin, % 4.6 4.8 9.7 7.8
# of Employees end of period 1,100 960
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11. Sweco Finland
Highlights
• Best performer Q2, operating margin 11.4%
• FMC Group in line with expectations
• Overall stable market
Apr-Jun 2012 Apr-Jun 2011 Jan-Jun 2012 Jan-Jun 2011
Net sales, SEK M 259.3 23.9 415.3 44.0
Operating profit, SEK M 29.5 2.9 45.3 4.8
Operating margin, % 11.4 12.0 10.9 10.9
# of Employees end of period 1,336 68
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12. Sweco Central & Eastern Europe
Highlights
• Net sales growth January − June 16%
• Overall unchanged market situation
• Continued difficulties to increase prices
Apr-Jun 2012 Apr-Jun 2011 Jan-Jun 2012 Jan-Jun 2011
Net sales, SEK M 68.1 60.8 134.5 115.7
Operating profit, SEK M 1.7 0.6 4.3 -2.6
Operating margin, % 2.4 1.1 3.2 -2.2
# of Employees end of period 884 863
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13. Sweco Russia
Highlights
• Significantly weakened market for infrastructure
• Improvement expected second half of 2012
• Long-term fundamentals remain strong
Apr-Jun 2012 Apr-Jun 2011 Jan-Jun 2012 Jan-Jun 2011
Net sales, SEK M 27.2 27.1 59.7 32.2
Operating profit, SEK M -3.0 1.7 -5.8 1.4
Operating margin, % -11.1 6.2 -9.7 4.4
# of Employees end of period 323 379
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14. Sweco Industry
Highlights
• Strong growth and improved profitability
• Finnish market continues to improve
• Need for additional recruitment
• Stable development in Norway and Sweden
Apr-Jun 2012 Apr-Jun 2011 Jan-Jun 2012 Jan-Jun 2011
Net sales, SEK M 191.9 157.3 384.7 301.8
Operating profit, SEK M 12.1 3.8 33.3 6.8
Operating margin, % 6.3 2.4 8.7 2.3
# of Employees end of period 707 657
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15. Market outlook
Trend Segment Share of net sales
• Overall robust market situation
Infrastructure 16%
• Increased probability for slower
Structural Engineering 16% development in some segments
Water & Environment 14% • Long-term drivers and trends:
- Environmental awareness
Energy systems 14%
- Urbanization
Building Service Systems 14% - EU expansion
Industry 10% • Sweco’s home markets has
stronger GDP growth and
Architecture 8% healthier public finances than
Project Management 6% the European average
• Well positioned for continued
Geographic IT 2%
profitable growth
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