NCC Annual Report 2020

Our core is construction

NCC is the construction company with the ability to manage the complexity of a construction process from start to finish, creating a positive impact on society and supporting its positive transformation. NCC builds schools, hospitals, roads, bridges, houses, offices and a lot more.

Våghuset under konstruktion

Strategic direction

Our core is construction

NCC is a knowledge-based company whose core is the ability to manage the complexity of a construction process.

Group-wide operational model

How we conduct operations in line with the strategic direction.

Star behaviors

Our corporate values – honesty, trust, respect.

Focus areas

Our purpose

Take the customer through the construction process to a positive end-result for all stakeholders.

Our core

Our foundation is the ability to manage the complexity of a construction process.

Our position

Proactive construction experts realizing complex projects with our customers.

A knowledge-based company

Build a knowledge-based company and a culture based on shared values and behaviors.

IT infrastructure

Invest in IT, digitization and working in a data-informed manner.

Proactivity

Be proactive in relation to the customers in order to manage the complexity of the construction process and utilize and develop our expertise and experience.

Expertise

Utilize our expertise to develop the construction process.

Act with passion to perform

We challenge ourselves and each other to constantly improve and outperform our targets.

Build together

We work actively to ensure effective collaboration internally, in and between units, and together with our customers.

Follow through and follow up

We take data-informed decisions, communicate them clearly and always act on what’s decided.

Act with care

We take responsibility for our actions and use of resources. We mitigate risk and act with integrity to ensure safe, high-quality and sustainable
operations.

Strategic direction

Our core is construction

NCC is a knowledge-based company whose core is the ability to manage the complexity of a construction process.

Our core

Our foundation is the ability to manage the complexity of a construction process.

Our purpose

Take the customer through the construction process to a positive end-result for all stakeholders

Our position

Proactive construction experts realizing complex projects with our customers

Group-wide operational model

How we conduct operations in line with the strategic direction.

A knowledge-based company

Build a knowledge-based company and a culture based on shared values and behaviors.

IT infrastructure

Invest in IT, digitization and working in a data-informed manner.

Proactivity

Be proactive in relation to the customers in order to manage the complexity of the construction process and utilize and develop our expertise and experience.

Expertise

Utilize our expertise to develop the construction process.

Star behaviors

Our corporate values – honesty, trust, respect.

Act with passion to perform

We challenge ourselves and each other to constantly improve and outperform our targets.

Build together

We work actively to ensure effective collaboration internally, in and between units, and together with our customers.

Follow through and follow up

We take data-informed decisions, communicate them clearly and always act on what’s decided.

Act with care

We take responsibility for our actions and use of resources. We mitigate risk and act with integrity to ensure safe, high-quality and sustainable
operations.

A message from the CEO

”We intend to use the strength and expertise of the large, and broad, company to create benefits for all stakeholders.”

Tomas Carlsson
President and CEO

Read full review

Financial targets and outcomes

Operating margin: ≥4%

Outcome 2020: 2.5%

Annual return on equity after tax: ≥20%

Outcome 2020: 37%

Corporate ned debt: <2.5 x EBITDA

Outcome 2020: –0.03 x EBITDA

Dividend policy: ≥40% of after-tax
profit is to be distributed to shareholders

Outcome 2020: 43 %1)

1) According to the Board of Directors’ motion to the 2021 AGM

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51,199

Orders received (SEK M)

53,922

Net sales (SEK M)

1,360

Operating profit (SEK m)

11.68

Earnings per share (SEK)

IMG 1
IMG 2
IMG 3
IMG 4
IMG 5
IMG 6

6.7

Accident frequency

42 %

Reduction of CO2e emissions since 2015

Sustainability at NCC

As one of the leading construction companies in the Nordic region, NCC plays an important role in the transition toward a more sustainable society throughout the value chain. Being at the forefront of sustainable solutions for our customers, maximizing the positive impact of our work and continuously working to minimize negative effects are integrated in our way of working.

Our sustainability targets guide our decisions and priorities within the company. Effective 2021, we have set external targets in two areas: Health & Safety and Climate & Energy.

NCC's sustainability reportMore on NCC's sustainability work

Building for the future

Based on our expertise in managing complex construction processes, NCC contributes to a positive impact of construction for our customers and society. Operations include commercial property development, building and infrastructure project contracting, and asphalt and stone materials production.

Runda valv över väg

NCC Infrastructure

Builds infrastructure for travel, transportation, energy and water in Sweden, Norway and Denmark. Operations comprise projects of all sizes and encompass solutions ranging from roads, railways, bridges and tunnels to water and sewage treatment, and hydropower and wind power. The business area undertakes earth and groundwork and foundation engineering assignments for all types of buildings.

17,084

Net sales (SEK M)

Share of sales
Share of employees
Sjukhus

NCC Building Sweden

Builds and renovates sustainable housing, offices, healthcare buildings, schools, sports facilities and public buildings for public and private customers in Sweden. With advanced skills in sustainability, digitalization and partnering, NCC Building Sweden develops projects jointly with customers from the early stages.

13,375

Net sales (SEK M)

Share of sales
Share of employees
Parkeringshus

NCC Building Nordics

Builds and renovates sustainable housing, offices, healthcare buildings, schools, sports facilities and public buildings for public and private customers in Denmark, Finland and Norway. Renovation of existing housing and offices has become an increasingly important part of the operations in recent years.

12,134

Net sales (SEK M)

Share of sales
Share of employees
Ohkola quarry, Finland

NCC Industry

Offers products and services for construction and infrastructure projects in Sweden, Norway, Denmark and Finland. Operations comprise production of stone materials and asphalt products. These components form a natural supply chain that is well integrated into NCC’s construction and civil engineering operations.

12,528

Net sales (SEK M)

Share of sales
Share of employees
Byggnad mot himmel

NCC Property Development

Develops, lets and sells commercial and community service properties in growth markets in the Nordic region. Operations are characterized by close cooperation with the customers to create flexible, customized and sustainable workplaces.

2,737

Net sales (SEK M)

Share of sales
Share of employees
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NCC develops the construction process – in every project

We create the living, working and infrastructure environments of tomorrow. We develop our employees, implement complex projects and deliver smart, sustainable solutions that address both major and minor challenges.

80,000 vehicles passed the worksite every day

NCC has completed a redevelopment and new construction project to address a challenging traffic situation at the Tingstadmotet interchange in Gothenburg. This complex project, which has been commended for its work-environment efforts, has yielded a positive result.

More about the project

NCC builds for the healthcare of tomorrow

As one of the largest hospital developers in the Nordic region, we develop cutting-edge healthcare facilities in a technically complex construction project that has to satisfy meticulous requirements. The functions are tested virtually by NCC and the customer right from the start.

More about the offer

ncc ar 2021 video

Simple reporting of NCC’s own work environment via an app

As part of the NCC’s occupational health and safety efforts, we collect thousands of observations about our work environment through the Synergi app. The data helps us to formulate methods for safer and healthier worksites.

More about digitization and a safe work environment

2021-10-12

NCC to construct stormwater tunnel in Copenhagen

NCC, in a joint venture with SMET, has been commissioned to construct a 1.3-kilometer surface water and stormwater tunnel in central Copenhagen. The project is to be performed on behalf of utility companies HOFOR and Frederiksberg Forsyning and is scheduled for completion in 2026. The order value for NCC is approximately SEK 300 million.

2021-10-04

NCC receives payment from collectively bargained AGS group sickness insurance policy

Afa Försäkring has decided to make lump-sum payments of surpluses within the collectively bargained AGS group sickness insurance policy. For NCC this is expected to have a positive impact on EBIT in the fourth quarter of 2021 of approx. SEK 160 M, of which approx. SEK 28 M is reported in the Industry business area and approx. SEK 9 M in other subsidiaries. The remaining approx. SEK 123 M is reported in the Group under Other and eliminations.

2021-10-04

NCC divests the asphalt business in Finland to Asfalttikallio

NCC divests its Finnish asphalt business to the Finnish based company Asfalttikallio. As previously announced, this is a small unit within NCC that has been loss-making for several years and has a better strategic fit with another owner. The transaction is expected to have a negative impact of SEK 180 M on the earnings in business area Industry in the fourth quarter 2021.

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