Stronger together World class infrastructure

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2 Stronger together World class infrastructure + A 2

3 Summary of the deal Sweco acquires 100% of the shares in Vectura of the Swedish Government Consideration 927 MSEK (Enterprise Value approximately 900 MSEK) Synergies >70 MSEK - Predominantly costs synergies - Additional upside potential Expected to contribute 100 MSEK to operating profit (EBITA) by 2015 EPS accretive +9% 3

4 Strategic rationale Continued value creating growth for Sweco s shareholders Consolidates Sweco s position as the leading consultancy in sustainable engineering and design Supplements Sweco with a market-leading position in the railway sector Strengthens the customer offering in roads, project management and traffic planning Strengthens Sweco s position in the fast growing Swedish infrastructure market Opens up greater opportunities in the fastgrowing Nordic market, above all in Norway. Realizes substantial cost synergies 4

5 Sweco after the combination #1 in the Nordics Top 10 in Europe employees Net sales SEK 8,8 billion The Nordic s leading engineering consultancy for infrastructure of the future 5

6 Sweco after the combination Pro forma 2012 Area of operation Share of sales Infrastructure Structural engineering Building service systems Energy systems Water and Environment Industry Architecture Project Management Geographic IT 27% 16% 12% 11% 10% 8% 7% 7% 2% 6

7 Strong market positions Permanent establishments in 12 countries and successful projects around the globe Market leading positions in Sweden, Norway and Finland Strong niche positions in Central and Eastern Europe Capacity to offer full service offerings in international projects 7

8 Nordic leadership Market share Sweden 14% >10% market share and leading positions (1-4) in Nordic home markets Nordics representing ~85% of Net Sales Norway 10% Considerable potential to continue to increase market shares Finland 10% Source: Svensk Teknik & Design, Sweco 8

9 Vectura in brief The Nordic s leading consultancy in transportation infrastructure Particularly strong in railway Employees: Net sales: MSEK Growth 7% annually Operating margin 2012 (EBIT) 31 MSEK Operations at ~40 locations in Sweden, Norway and Denmark Established 2009 after combining the national road and railway agencies consulting organizations 9

10 Vectura in brief Share of revenues, % Trafic & urban planning Other Project & construction mgmt Rail* 5% 94% 36 1% Road* *InfraDesign unit 10

11 Vectura Project examples Västlänken Road/rail Motala-Mjölby Mälarbanan Railway tunnel under central Gothenburg 8 km double track railway 6 km tunnel 26 km double track railway 2 stations 40 bridges 28 km highway with 35 bridges, of which a 620 m long steel bridge over Motalaviken Civil engineering and railway Extension from 2 to 4 tracks between Tomteboda-Kallhäll In total 20 km 11

12 Strong market development Continued strong growth of infrastructure investments Sweco strengthens the position in this fast growing market From 16% to 27% of group sales Also adds capabilities to participate in the strong growth in Norway Government investments Sweden SEK billion monetary value 2013* +36% Road Railroad Government investments Norway NOK billion monetary value 2013** +75% Road * Source: Trafikverket;Transportsystemets behov av kapacitetshöjande åtgärder (2012); Infrastrukturproposition 2012; Budgetpropositionen 2013; Vårpropositionen 2013; Riksrevisionens rapport om statens satsningar på transportinfrastruktur (2013), Swecoanalysis. ** Source: Nasjonal transportplan (2013); Statsbudsjettet 2011, 2012, Railroad 12

13 The Nordic s leading engineering consultancy Net Sales 2012, SEK billions, Nordic countries + 1) 7,9 7,1 2) 6,5 5,1 3,3 1) Pro forma ) Pro forma ÅF+ Epsilon Source: Year-end reports, Branschöversikten 2012 Conversion ratesr: EUR/SEK: 8,70 DKK/SEK: 1,17 NOK/SEK: 1,16 (average full year 2012) 13

14 Value creating combination + A 14

15 The transaction Consideration 927 MSEK (Enterprise Value ~900 MSEK on the day of closing) EV/EBITA 9x (incl. synergies) EV/Sales 0,7x Financed through a combination of existing and new credit facilities Cost of financing ~3% Sweco s financial target of Net debt/equity <0,4 will be exceeded Considered to be done with balanced risk taking 15

16 Impact on income Vectura s EBIT 2012: 31 MSEK Yearly synergies exceeding 70 MSEK by 2015 Primarily cost synergies Additional upside potential Contribution to Sweco s EBITA ~100 MSEK by 2015 Integration costs estimated to 100 MSEK Will primarily impact income H and H Transaction costs 5 MSEK will impact income Q EPS +0,48 SEK or +9% (including synergies 2015) 16

17 Profitability Sweco vs. Vectura 2012 EBITA margin, % Vectura 2,3% Billing ratio 1,1% Project operations 0,9% Administration 5,4% Healthy and profitable project operations 2/3 of difference attributable to administration costs Vectura start-up and incorporation costs Economies of scale in Sweco s administration Significant synergy potential Other 0,6% Sweco Sweden 10,3% Source: Sweco analysis 17

18 Vectura Key financials by BA Net Sales (MSEK) EBIT (MSEK) EBIT-margin (%) Infradesign ,7 Project & construction mgmt ,1 Traffic & Urban planning ,4 Norway ,6 18

19 Synergies Cost synergies (2015 >45 MSEK) Reduction of external costs Coordination of administrative services Co-location of offices Coordination of unprofitable units with Sweco (2015 >25 MSEK) Coordination of the Norwegian business with Sweco Norway Coordination of Traffic & Urban planning with Sweco s similar business Potential for additional cost synergies Longer term same profitability is expected as other Sweco Sweden Sweco Vectura Sweco 41 locations Vectura 37 locations 26 overlapping locations Additional opportunities for growth 19

20 Illustrative pro forma 2012, incl. synergies Consolidated statement of income MSEK Sweco Vectura Adjustment Combined Increase Net Sales % Operating costs EBITA % EBITA margin 10,1% 2,3% 9,7% Amortizations and depreciations EBIT % EBIT margin 9,1% 2,3% 8,7% Financial net Profit before tax % Income tax Profit for the period % Non controlling interests -6-6 Earnings per share attributable to owners of the Parent Company Earnings per share, SEK 5,15 0,26 0,22 5,63 +9% 20

21 Next steps Filing to competition authorities in Sweden and Norway Closing in August 2013, provided competition authorities positive ruling Vectura to be integrated in Sweco Sweden using the Sweco brand Vectura continues to operate with current organization and brand during a transitional period Majority of integration completed H

22 Stronger together The Nordic region s leading engineering consultancy + A 22