STOCKHOLM, Sweden, April 30, 2002 (PRIMEZONE) -- As a result of NCC's new Group structure, which was introduced at the beginning of 2002, the NCC Group's interim reports will comprise earnings figures from ten reporting units. In addition, the financial accounts of real estate operations will be adapted to reflect NCC's focus on property development.
The NCC Group's interim report on earnings during the first quarter of 2002 will be released on Friday, May 3. Due to the organizational changes that became effective at the beginning of the year, and various changes in accounting and reporting principles, pro forma figures are presented here - that is, figures based on the assumption that the changes made on January 1, 2002 applied throughout 2001.
Since consolidated sales revenues have been affected by changes in accounting principles, sales figures are also presented pro forma. The Group's operating profit before depreciation (EBIT), profit after net financial items (EBT) and pretax profit are not affected by these changes.
Pro forma accounts for business areas As of January 1, 2002, the NCC Group's public accounts are divided into results from ten reporting units (see below). The accounts below do not include items affecting comparability. In the legal accounts for 2001, consolidated profit was charged with items affecting comparability (restructuring costs, goodwill write-downs and changed accounting principles) totaling SEK 1,740 million.
Construction units in the various countries comprise the Group's housing- development activities and the operations that conduct operations related to the building and civil-engineering sectors, with the exception of major civil engineering projects, which are included in International Projects. During 2001, NCC Construction's operations were divided into the Contracting, Housing, Telecom and Service business areas.
International Projects comprises major Nordic and international civil engineering projects. These operations were included in the Contracting business area during 2001.
Property Development consists of the Group's property-management and property-development operations, in which the focus is on project development. These operations are unchanged compared with the past, although the accounting principles governing them have been amended (see below).
Roads consists of the production of aggregates, asphalt and ready-mixed concrete, as well as paving and road-marking activities (not civil engineering work for road construction, which is included in Construction). During 2001, most of Roads' operations were included in the Industry business area, as well as in Contracting (paving operations in Sweden).
Altima comprises the Group's machinery-rental activities. During 2001, these activities were included in the Industry business area.
ACCOUNTING PRINCIPLES
Classification of properties - NCC Property Development Until December 31, 2001, NCC's property holdings and real estate projects within NCC Property Development were reported in the balance sheet as fixed assets under the heading Buildings and land.
In the accounts, buildings and land were divided into:
- Properties used in NCC's operations - Managed properties - Properties held for future development
Until December 31, 2001, sales of properties and real estate projects were not included in NCC's net sales; they were reported as "result from sales of properties" within operating profit (after gross profit).
As of January 1, 2002, only managed properties and properties used in NCC's operations are reported as fixed assets. Properties held for future development are reported as current assets, since NCC's intention is not to held these properties permanently but to sell (develop and sell) them. New acquisitions of properties intended for development and sale will be classified as current assets.
In turn, properties held for development and sale (current assets) will be divided into:
- Properties held for future development - Real estate projects in progress - Completed real estate projects (new category)
For marketing reasons, the capital gain/loss on completed sales of real estate projects - although not of managed properties - will no longer be reported separately for individual transactions.
Managed properties will continue to be reported as fixed assets. The intention is to divest these properties by the end of 2003 at the latest and no new projects will be added to this category.
Income statement
As of January 1, 2002, NCC's sales include revenues from sales of properties reported as current assets. Pro forma figures for 2001 have been recomputed accordingly.
The reporting of gains/losses from sales of managed properties will remain unchanged, meaning as "result from sales of properties" within operating profit (after gross profit). As before, NCC's sales will also include rental revenues from properties held for development and sale. However, as of January 1, 2002, rental revenues from managed properties will be reported as a part of earnings from managed properties and will no longer be included in NCC's sales. Results from property management will consist of the operating net from the managed properties less depreciation according to plan.
Valuation of properties reported as current assets Properties reported as current assets will not be depreciated according to plan. On the other hand, the value of these properties will be adjusted, where applicable, based on acquisition or market value, whichever is lower.
Supplementary information regarding property sales A number of real estate projects were sold during the first quarter. The largest sale was of the Ornnastet 4 property in Jonkoping. In the press release distributed on March 19 that described this transaction, it was stated erroneously that this sale would be reported in earnings during the second quarter of 2002. A number of smaller sales were also completed during the quarter.
The largest sale of a managed property included in first-quarter earnings was of the Norra Sjukhuset property in Lund. The Taxeringsrevisorn 2 property in Malmo is also included among sales of managed properties. It was previously stated erroneously that the sale of Taxeringsrevisorn 2 would be reported in second-quarter earnings.
All of NCC's press releases are available on www.ncc.se
NCC is one of the leading construction and property development companies in the Nordic region. NCC has annual sales of SEK 46 billion, with 28,000 employees.
Pro forma quarterly figures per business area/unit, 2001
Construction Sweden Quarterly figures Full year
Q1 Q2 Q3 Q4 2001
Orders received, SEK M 5 908 5 645 2 883 6 897 21 333
Order backlog, SEK M 10 793 12 074 10 676 11 142 11 142
Net sales, SEK M 4 171 4 795 4 195 5 986 19 147
Operating profit (EBIT),
SEK M 14 17 8 86 125
Operating margin (EBIT), % 0,3 0,4 0,2 1,4 0,7
Construction Denmark Quarterly figures Full year
Q1 Q2 Q3 Q4 2001
Orders received, SEK M 2 070 1 719 1 416 2 710 7 915
Order backlog, SEK M 4 577 4 549 4 198 4 820 4 820
Net sales, SEK M 1 337 1 717 2 014 1 990 7 058
Operating profit/loss
(EBIT), SEK M -25 37 31 -54 -11
Operating margin (EBIT), % -1,9 2,2 1,5 -2,7 -0,2
Construction Finland Quarterly figures Full year
Q1 Q2 Q3 Q4 2001
Orders received, SEK M 1 473 1 042 680 1 060 4 255
Order backlog, SEK M 3 615 3 381 3 048 2 667 2 667
Net sales, SEK M 1 144 1 280 1 196 1 340 4 960
Operating profit/loss (EBIT) 50 35 68 -4 149
SEK M
Operating margin (EBIT), % 4,4 2,7 5,7 -0,3 3,0
Construction Norway Quarterly figures Full year
Q1 Q2 Q3 Q4 2001
Orders received, SEK M 1 200 1 725 1 120 -9 4 036
Order backlog, SEK M 3 738 4 597 4 590 3 670 3 670
Net sales, SEK M 1 034 1 121 1 151 1 386 4 692
Operating profit/loss (EBIT), -14 -41 25 -369 -399
SEK M
Operating margin (EBIT), % -1,4 -3,7 2,2 -26,6 -8,5
Construction Germany Quarterly figures Full year
Q1 Q2 Q3 Q4 2001
Orders received, SEK M 285 -18 364 -290 341
Order backlog, SEK M 1 447 1 165 1 354 807 807
Net sales, SEK M 207 262 260 216 945
Operating profi/loss (EBIT),
SEK M -5 12 21 -291 -263
Operating margin (EBIT), % -2,4 4,6 8,1 -134,7 -27,8
Construction Poland Quarterly figures Full year
Q1 Q2 Q3 Q4 2001
Orders received, SEK M 2 313 219 13 547
Order backlog, SEK M 99 469 343 282 282
Net sales, SEK M 26 30 236 320 612
Operating profit/loss (EBIT), -13 7 -4 -9 -19
SEK M
Operating margin (EBIT), % -50,0 23,3 -1,7 -2,8 -3,1
International Projects Quarterly figures Full year
Q1 Q2 Q3 Q4 2001
Orders received, SEK M 103 150 655 977 1 885
Order backlog, SEK M 3 240 2 935 3 412 3 860 3 860
Net sales, SEK M 237 459 348 450 1 494
Operating loss (EBIT), SEK M -15 -14 -1 -161 -191
Operating margin (EBIT), % -6,3 -3,1 -0,3 -35,8 -12,8
Property Development Quarterly figures Full year
Q1 Q2 Q3 Q4 2001
Net sales, SEK M 389 458 576 905 2 328
Operating profit (EBIT),
SEK M 193 307 159 55 714
Roads Quarterly figures Full year
Q1 Q2 Q3 Q4 2001
Orders received, SEK M 1 069 2 601 2 429 2 232 8 331
Order backlog, SEK M 919 1 401 988 1 269 1 269
Net sales, SEK M 740 2 121 2 864 2 381 8 106
Operating profit/loss (EBIT),
SEK M -335 228 390 -76 207
Operating margin (EBIT), % -45,3 10,7 13,6 -3,2 2,6
Altima Quarterly figures Full year
Q1 Q2 Q3 Q4 2001
Orders received, SEK M 366 407 371 401 1 545
Order backlog, SEK M
Net sales, SEK M 366 407 371 401 1 545
Operating profit (EBIT),
SEK M 38 56 64 0 158
Operating margin (EBIT), % 10,4 13,8 17,3 10,2
CONSOLIDATED INCOME STATEMENT
Jan-March Jan-Dec
SEK M 2001 2001
pro forma pro forma
Net sales 9 111 47 521
Production and management costs -8 466 -43 711
Gross profit 665 3 810
Sales and administrative expenses -896 -4 004
Result from property management 66 254
Result from sales of properties 13 229
Write-down of properties -140
Result from participations in associated companies -24 34
Result from sales of associated companies 7 13
Result from sales of Group companies 8
Items affecting comparability
Write-down of goodwill -219
Changed accounting principles -329
Restructuring costs -1 192
Operating loss -169 -1 536
Result from financial fixed assets 143 295
Result from financial current assets 47 234
Interest expense and similar income-statement -351 -1 123
items
Loss after financial items -330 -2 130
Tax on net result for the year 99 -121
Minority interest 1 -18
Net loss for the year -230 -2 269
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