Interim report Jan-Sep 2019 JONAS GUSTAVSSON, CEO JUUSO PAJUNEN, - PowerPoint PPT Presentation

Interim report Jan-Sep 2019 JONAS GUSTAVSSON, CEO JUUSO PAJUNEN, CFO OCTOBER 29, 2019

Overall development − Continued stable development in the third quarter − The strategic acquisition of Pöyry has created a leading engineering and design company in the Nordics − Strengthened the international platform − The integration goes according to plan

The combined company ÅF Pöyry - Stable performance with focus on integration and efficiency JULY – SEPTEMBER 2019 — Stable performance +3.7% Net sales: SEK 4,562 million (4,398) — Overall solid demand, however weaker market in some industrial EBITA*: SEK 345 million (335) +3.0% segments EBITA-margin*: 7.6% (7.6) — Integration and cost synergies according to plan JAN – SEPTEMBER 2019 +8.6% — Extended cost synergy and Net sales: SEK 15,380 million (14,164) efficiency program into 2020 EBITA*: SEK 1,293 million (1,224) +5.6% EBITA-margin*: 8.4% (8,6) *Excl Items affecting comparability

Reported numbers - With Pöyry acquisition, growth and earnings above 50% JULY – SEPTEMBER 2019 +52.3% Net sales: SEK 4,562 million (2,995) EBITA*: SEK 345 million (220) +56.8% EBITA-margin*: 7.6% (7.4) JAN – SEPTEMBER 2019 +43.2% Net sales: SEK 14,345 million (10,018) EBITA*: SEK 1,216 million (911) +33.5% EBITA-margin*: 8.5% (9.1) *Excl Items affecting comparability

Byt bild Market update — Core markets show continued solid demand in Infrastructure. — Weaker demand in automotive and manufacturing industry. Continued stable demand in other industrial segments, e.g. defense and food & pharma. — Continued strong demand in Process industries, especially in the Nordics and Latin America. — Overall stabile demand in the energy sector , especially in nuclear . Postponed investment decisions in hydro and transmission & distribution.

A diversified portfolio Infrastructure 6% 3% 2% Real Estate 21% Division, share of revenue, 3% Automotive & Vehicle Jan – Sept, 2019 Energy and Power 14% ÅF Pöyry Manufacturing Industry Infrastructure, 38% Net sales by segment Life Science, Food & Pharma 13% Sep 2018 LTM 1,2 Process Industry 5% Telecom and ICT 6% Defence 10% Industrial & Digital Solutions, 29% Management Consulting 17% Other Process Industries, 15% 4% 4% Nordics 10% Switzerland Energy, 15% 7% ÅF Pöyry Other Europe Net sales by region Sep 2018 LTM 1,2 Asia Management Consulting, 3% Other 75%

Example of projects — New framework agreement with Region Stockholm on strategic sustainabilty services — ÅF Lighting won a framework agreement with Uppsala municipality for lighting design and construction management — ÅF Pöyry was chosen by Rottneros to deliver new digital software to streamline production support — On behalf of Uppsala Municipality, ÅF Pöyry will project a new ice arena, expected to open in 2023 — ÅF Pöyry won a significant order in Hungary for the Paks 2 new-build project — ÅF Pöyry has won a contract for process solutions by TINE SA, Norway's largest producer, distributor and exporter of dairy products — ÅF Pöyry was chosen by Innogy to work with their corporate foresight and corporate strategy project for infrastructure markets

Extended cost synergies and focus on efficiency into 2020 - revenue synergies in all divisions COST SYNERGIES AND EFFICENCY REVENUE SYNERGIES Each Division have a concrete strategy plan • Committed annual cost synergies of 180 MSEK • leveraging from competencies from both former end of 2019 ÅF and former PÖYRY – with growth plans per segment and geography. 165 MSEK in annual run-rate synergies achieved • by end Q3 2019 Examples: • Extended cost synergies and efficiency - Increasing joint offerings within • improvements into 2020 to drive profitability, transportation and buildings in Switzerland but also for meeting a more uncertain market - Water offering in Nordic and Europe climate - Distinct harmonised business model in Energy During 2020, integration of IT-systems will • continue as well as crucial investments in ERP- - Larger projects within Process Industries system. This will enable efficiency and enhanced - Digital offering developed for all domains integration of business units across ÅF Pöyry - Strengthened Sustainability offering

Repositioning of Energy Division — Extensive work to develop a clear position within energy to increase the profitabilty in 2020 — Enhanced business model based on ”global/ local model ” — Sales structure efficiency — Addressing underperforming and sub-critical units — Negative impact on results estimated to MSEK 130 - 150 with approx 20% cash flow impact in Q4 2019

Solid combined growth REPORTED NET SALES, MSEK COMBINED, Q3 2019 - Total growth: 3.7% 5 500 18 000 5 000 REPORTED, Q3 2019 16 000 4 500 - Total growth: 52.3% 14 000 4 000 - Organic growth: 1.1% (8.0) 12 000 - Adjusted/underlying organic growth: 0.2% (6.0) 3 500 10 000 3 000 8 000 COMMENTS 2 500 6 000 - Overall solid demand in core markets 2 000 4 000 - Slower development in some industrial segments 1 500 2 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 17 17 17 17 18 18 18 18 19 19 19 Quarter Rolling 12-months

Stable earnings Reported EBITA and EBITA margin, MSEK excl. items affecting comparability COMBINED, Q3 2019* 500 16 - EBITA increased to SEK 345 million (335) - EBITA margin 7.6% (7.6) 14 450 12 400 REPORTED, Q3 2019* 10 - EBITA increased to SEK 345 million (220) 350 - EBITA margin 7.6% (7.4) 8 300 COMMENTS 6 250 - Items affecting comparability totaled 37 MSEK 4 and relate to integration costs 200 2 - Solid earnings in the quarter in key businesses like buildings, digital and process industries 150 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 17 17 17 17 18 18 18 18 19 19 19 - Earnings impacted by slower demand in Quarter EBITA-margin automotive, manufacturing and infrastructure business in Denmark * Excl. items affecting comparability

Cash flow and Net debt (excl. IFRS 16 – Leases) Solid free cash flow CASH FLOW FROM OPERATIONS GENERATED SEK M 185 (112) IN Q3 2019 SEK M Comments Net Debt as of June 30, 2019 5,154 Seasonality and build up of working capital after summer -185 Cash flow from operating activities CAPEX 24 Acquisitions and Contingent Considerations 71 Acquisitions and earn-out related outflows Share buy-backs/sales 164 Convertible loan Other -116 Net Debt as of September 30, 2019 5,112 Net debt/EBITDA when Pöyry R12m included is 2.8 Net Debt/EBITDA rolling 12 months 3.5

Cash flow and Net debt (incl. IFRS 16 – Leases) CASH FLOW FROM OPERATIONS GENERATED SEK M 571 (112) IN Q3 2019 SEK M Comments Net Debt as of June 30, 2019 7,728 Cash flow from operating activities -571 Whereof LFRS16 Leases -386 CAPEX 24 Acquisitions and Contingent Considerations 71 Share buy-backs/sales 164 Leasing cost and convertible loan Other 211 7, 627 Net Debt as of September 30, 2019 Net Debt/EBITDA rolling 12 months 4.0

Q3 2019 Infrastructure Jul – Sep Jul – Sep Jan – Sep Jan – Sep Full year KEY RATIOS 2019 2018 2019 2018 2018 1,738 1,280 5,565 4,275 5,955 Net sales, MSEK – Third quarter net sales amounted to SEK 1,738 million EBITA, MSEK 118 113 494 452 637 (1,280) 6.8 8.8 8.9 10.6 10.7 EBITA margin % – EBITA amounted to SEK 118 million (113) and the EBITA Average number of 5,916 4,465 5,653 4,374 4,445 employees, FTEs margin was 6.8% (8.8) 35.7 - 30.2 - - Total growth, % – Continued underlying need for investments in core markets Structural changes, % 29.2 - 21.8 - - 0.7 - 1.2 - - Currency, % – Solid development within Buildings Organic, % 5.8 - 7.1 - - – Weak development in Denmark and lower utilisation within Adjusted/underlying some parts of Transportation at the beginning of the quarter organic growth due to 4.2 - 6.8 - - calendar effect, % Total combined growth, % 7.0 - 11.4 - -

Q3 2019 Industrial & Digital Solutions Jul – Sep Jul – Sep Jan – Sep Jan – Sep Full year KEY RATIOS 2019 2018 2019 2018 2018 Net sales, MSEK 1,204 1,229 4,265 4,154 5,782 EBITA, MSEK 80 94 355 375 525 EBITA margin % 6.6 7.7 8.3 9.0 9.1 Average number of 3,738 3,782 3,801 3,710 3,748 – Third quarter net sales amounted to 1,204 MSEK (1,229) employees, FTEs Total growth, % -2.0 - 2.7 - - – EBITA amounted to SEK 80 million (94) and the EBITA 0.3 - 1.4 - - Structural changes, % margin was 6.6%(7.7) Currency, % 0.2 - 0.2 - - – Continued strong demand in Food & Pharma and Defence Organic, % -2.5 - 1.0 - - Adjusted/underlying – Slowdown in automotive and manuf. industry organic growth due to -4.0 - 1.0 - - calendar effect, %