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Jonas Wiström, President and CEO, +46 70 608 12 20
Stefan Johansson, CFO, +46 70 224 24 01

ÅF reports increased earnings and continued growth

Second quarter 2016

• Net sales amounted to SEK 2,942 million (2,589)

• Operating profit, excl items affecting comparability, totalled SEK 284 million (225)

• Operating margin, excl items affecting comparability, was 9.7 percent (8.7)

• Operating profit totalled SEK 281 million (260)

• Operating margin was 9.5 percent (10.0)

• Profit after tax totalled SEK 211 million (199)

• Earnings per share, before dilution: SEK 2.75 (2.55)

First half year 2016

• Net sales amounted to SEK 5,585 million (4,986)

• Operating profit, excl items affecting comparability, totalled SEK 504 million (432)

• Operating margin, excl items affecting comparability, was 9.0 percent (8.7)

• Operating profit totalled SEK 501 million (466)

• Operating margin was 9.0 percent (9.4)

• Profit after tax totalled SEK 372 million (351)

• Earnings per share, before dilution: SEK 4.85 (4.51)

A few words from the President, Jonas Wiström:

ÅF`s operating profit totalled SEK 281 million, which is the highest quarterly profit ever. At the same time the Group is reporting persistently high growth and a strong cash flow. Three of four divisions report an operating margin of over 10 percent. The operating margin for the International Division remained unchanged, despite challenging market conditions.

ÅF is of the opinion that the market situation is largely unchanged compared with the previous quarter. There is persistent high variation between different sectors, with strong demand from the automotive, pulp, food and pharma industries, infrastructure planning and infrastructure projects within roads, railways and the construction sector. The weak level of demand within nuclear power, the oil industry and commodities sector is persisting. However, ÅF takes a positive view of the agreement on Swedish energy policy, which will generate a need for increased investment in the energy sector including nuclear power in Sweden.

In order to further boost profitability, ÅF has launched a second cost-cutting programme within the Industry and Technology divisions, as well as in the parent company, which resulted in restructuring costs of SEK 25 million during the quarter. The measures are expected to generate annual savings of about SEK 38 million.

The Infrastructure Division is reporting solid growth with healthy profitability. Growth is strong within roads and railways, but the construction sector is also experiencing healthy and increasing growth. Design and architecture will gain increasing significance in the move towards a sustainable society. The acquisition of sandellsandberg will strengthen ÅF`s broad offering within infrastructure planning and architecture, which also means that ÅF will enter the project phase at an earlier stage. The integration of ÅF Reinertsen in Norway is proceeding according to plan.