Imagine. Reflect. Innovate. Or just see things from a new perspective. Innovativeness is a key concept in our operations. And this applies to everything, from our business conduct to how we organize our work, design our services and run our R&D activities. Our focus on innovativeness reflects our ambition of being at the leading edge of development in our sector. But it also reflects a change of direction for the entire Group. NCC has switched from being a traditional construction and real estate company to a development-intensive service company that focuses on profitable …being growth in a mature sector with the help of our special methods for problem solving and our new approach to professional roles and Imagine working processes. As is the case for all service companies, intellec- tual resources play a major role in the value-creation process. NCC annual report 1999 NCC’s business model is based on the aim of being active throughout the value chain from project concept to final sale. This demands considerable innovativeness, which is why development activity is intense throughout the Group. Innovative capital is our most valuable asset, since it is the foundation for our future profitability. NCC – the Innovators NCC AB, 170 80 Solna.Tfn 08-655 20 00. Fax 08-85 77 75 www.ncc.se 2 Summary 4 Review by the President 8 The NCC share 10 NCC Future project 14 Vision, strategy and financial objectives 15 Intangible assets 16 Intangible assets 17 Structural and Process Capital REGIONES Southern Sweden Ballast Öst AB SWEDEN Poland c zoo 19 Innovation Capital Luleå 205 47 Malmö Skyttegatan 2 Stockholm Pod Orlem Spólka Visiting address: 582 30 Linköping Box 1114 Ul. 11 Listopada 60–62 – Research and development Box 803 971 25 Luleå Thomsons väg 40 Tel: + 46-13-13 11 88 164 22 Kista pl-43-300 Bielsko Biala Visiting address: Tel: + 46-40-31 70 00 Fax: + 46-13-12 51 27 Visiting address: Tel: +48-33 8 164 220 22 Human Capital Ålgatan 17b Fax: + 46-40-21 34 59 Ballast Syd AB Torshamnsgatan 39 Fax: +4833 8 123 600 Tel: + 46-920-734 00 Construction Services 205 47 Malmö Tel: + 46-8-750 35 00 West Gate Polska 25 Relational Capital Fax: + 46-920-22 34 65 405 14 Gothenburg Visiting address: Fax: + 46-8-751 17 13 Spólka z.o.o. Visiting address: Thomsons väg 40 Malmö Ul. Raszynska 3/20 27 Business areas, markets and subsidiaries Umeå Box 455 Gullbergs Strandgata 2 Tel: + 46-40-31 73 00 205 47 Malmö pl-02-026 Warszaw 901 09 Umeå Tel: + 46-31-771 50 00 Fax: + 46-40-21 53 77 Visiting address: Tel: +48 22 622 44 86 28 NCC Civil Engineering Visiting address: Umestan Fax: + 46-31-15 35 60 NCC Machinery North Thomsons väg 40 Fax: +48 22 622 79 55 Företagspark Hus nr 3 OUTSIDE SWEDEN Box 1200 Tel: + 46-40-31 70 00 Hungary 32 NCC Housing Tel: + 46-90-16 80 00 Denmark 901 22 Umeå Fax: + 46-40-94 87 16 NCC Fastigheter AB Fax: + 46-90-14 13 55 NCC TeleCom a/s Visiting address: Gothenburg Rözse Köz 4 36 NCC Building h Sundsvall Kirkebjerg Allé 88 Förrådsvägen 14 405 14 Gothenburg -1125 Budapest Box 704 dk-2605 Brøndby Tel: + 46-90-16 80 00 Visiting address: Tel: +36 1 202 08 98 40 NCC Industry 851 21 Sundsvall Tel: +45 43 44 91 00 Fax: + 46-90-14 28 22 Gullbergs Strandgata 2 Fax: +36 1 356 02 94 Visiting address: Fax: +45 43 44 10 51 NCC Maskin Stockholm Tel: + 46-31-771 50 00 Germany,Agency 44 NCC Real Estate Erstavägen 4 SUBSIDIARIES Box 909 Fax: + 46-31-15 98 51 NCC Property Consulting Tel: + 46-60-16 16 00 Däldehög AB 175 29 Järfälla GmbH 53 NCC Invest Fax: + 46-60-61 28 41 Box 8704 Visiting address: OUTSIDE SWEDEN Niederkasseler Lohweg 185 Belgium …being able to create a Värmland-Dalarna 402 75 Gothenburg Äggelundavägen 4 40547 Düsseldorf Eurobalken s.a. 54 Markets and subsidiaries Box 96 Visiting address: Tel: + 46-8-621 23 00 Tel: +49-211 520 14 400 Av van Nieuwenhuyse 5 651 03 Karlstad Södra Hildedalsgatan 9 Fax: + 46-8-761 26 30 Fax: +49-211 520 14 444 B-1160 Brussels 60 Five-year review Visiting address: Tel: + 46-31-50 07 50 NCC Machinery West Tel: +32 2 672 35 44 Elverumsgatan 7 Fax: + 46-31-51 51 85 Tagenevägen 25 Fax: +32 2 672 06 30 ALLIANCES 62 Definitions Tel: + 46-54-17 08 00 R.Å.D. i Sverige AB/ABVAC 425 37 Hisings Kärra Fax: + 46-54-85 49 73 Bällstavägen 161 Tel: + 46-31-57 67 00 Denmark a/s IGL-NCC Contractors 63 Report of the Board of Directors 168 59 Bromma Fax: + 46-31-57 67 50 NCC Danmark Saint Petersburg Mälardalen Ejendomme Box 486 Tel: + 46-8-17 83 50 Representative Office NCC Machinery East Datavej 26 68 Financial accounts 751 06 Uppsala Fax: + 46-8-37 23 70 36, Shpalernaja street Box 13069 dk-3460 Birkerød Visiting address: Saint Petersburg, 191123 580 13 Linköping Tel: +45 45 82 66 15 76 Accounting principles Fålhagsleden 51 Russia NCC INDUSTRY Visiting address: Fax: +45 45 82 66 18 Tel: + 46-18-16 15 00 Strids Gata, Malmslätt Tel: +32 3 560 19 03 79 Comments and notes Fax: + 46-18-14 98 28 170 80 Solna Tel: + 46-13-28 97 00 England Fax: +32 3 560 19 00 uk Visiting address: Vallgatan 5 Fax: + 46-13-29 80 62 NCC Group INS Contractors Linköping Bond Street House 87 Proposed disposition of profits and Box 1505 Tel: + 46-8-655 20 00 55 Bio-House Bldg., 5th Fl. NCC Machinery South 14 Clifford Street 581 15 Linköping Fax: + 46-8-624 36 37 Sukhumvit 39 Rd., Auditors’ Report Box 18 gb-London W1X 1RE Visiting address: Klongton-Nue REGIONS 260 23 Kågeröd Tel: +44 20 7915 6800 88 Board of Directors and Hertig Karlsgatan 2 Ballast Nord AB Visiting address: Wattana, Bangkok 10110 Fax: +44 20 7631 3264 Thailand Executive Management Tel: + 46-13-24 64 00 Box 455 Stenhuggaregatan 34 Fax: + 46-13-31 35 17 901 09 Umeå Tel: + 46-418-841 00 Finland Tel: +66 2 262 0871-5 Visiting address: Fax: + 46-418-807 09 NCC Finland Oy Fax: +66 2 262 0876 92 Addresses Stockholm Real Estate Development 115 86 Stockholm Renmarkstorget 12c NCC Machinery New Markets Jönsaksentie 4 Visiting address: Tel: + 46-90-16 80 30 170 80 Solna pl 77 FINANCIAL INFORMATION 2000 Tegeluddsvägen 31 Fax: + 46-90-12 86 27 Visiting address: fi-01601 Vantaa Tel: + 46-8-782 00 00 Ballast Stockholm AB Vallgatan 5, Markkontoret Tel: +358 9 507 51 March 30 Annual General Meeting Fax: + 46-8-664 62 17 Box 745 Tel: + 46-8-655 20 00 Fax: +358 9 507 53 18 194 27 Upplands Väsby Fax: + 46-8-655 19 50 May 8 Interim report January–March Gothenburg 405 14 Gothenburg Visiting address: Holland NCC Property 17 Visiting address: Stockholmsvägen 40 Aug Interim report January–June NCC REAL ESTATE Development bv Tel: + 46-8-590 049 00 ÖMÄ Gullbergs Strandgata 2 ILJ RK Burgemeester M T Nov 1 Interim report January–September Tel: + 46-31-771 50 00 Fax: + 46-8-590 049 29 170 80 Solna Haspelslaan 131 Fax: + 46-31-15 30 49 Ballast Väst AB Visiting address: nl-1181 nc Amstelveen 341 009 Jönköping,Västra Götaland Tagenevägen 25 Vallgatan 3 TRYCKSAK The report on operations can be ordered from Tel: +31 20 640 04 01 FRÅN LJUNGLÖFS Box 1061 425 37 Hisings Kärra Tel: + 46-8- 655 20 00 Fax: +31 20 640 04 26 NCC AB, SE-170 80 Solna 551 10 Jönköping Tel: + 46-31-57 85 00 Fax: + 46-8-85 54 11 Production: NCC and Intellecta Visiting address: Fax: + 46-31-57 85 60 Norway Photography: Industrifotografen tel: +46 8 655 20 00 NCC Klubbhusgatan 15 (pp. 11, 17, 19, 24, 29, 37, 41, 45); Eiendom as fax: +46 8 85 77 75 Tel: + 46-36-30 16 00 Jonas Karlsson (pp. 13, 21, 31, 35, 39, Chr. Kroghs gt 32b e-mail: [email protected] Fax: + 46-36-30 16 90 43, 49); Mats Lundqvist (pp. 4, 14, 23, Box 56 Sentrum 88, 89, 90, 91); Sven Tideman (p. 53); or website: www.ncc.se. no-0101 Oslo Mats Widén (pp. 15, 27, 61). Paper: Tel: +47 22 98 68 00 Munken. Printing: Ljunglöfs, 2000. Fax: +47 22 98 69 70 Translation: Bugli Company … a model for solving infrastructure problems Read Case Study #1 on page 13 … construction methods that reduce wear on the body Read Case Study #2 on page 21 … launching underwater solutions tailor-made on dry land Read Case Study #3 on page 31 small town in a big city Read Case Study #4 on page 35 … if you could reclaim contaminated industrial land Read Case Study #5 on page 21 … if builders could concentrate on building Read Case Study #6 on page 43 … just having to turn the key Read Case Study #7 on page 49 SUMMARY BRIEF STATISTICS ON 1999 NET SALES INCOME AFTER NET RETURN ON EQUITY RETURN ON sek m FINANCIAL ITEMS percent CAPITAL EMPLOYED sek m percent 37460 1 251 9 10 34 160 7 6 730 98 99 98 99 98 99 98 99 EQUITY/ASSETS RATIO EARNINGS PER SHARE DIVIDEND AVERAGE NUMBER percent AFTER FULL TAX sek OF EMPLOYEES sek 34 34 7.70 4.00 24 122 21 645 5.00 2.50 98 99 98 99 98 99 98 99 2 SUMMARY HIGHLIGHTS OF 1999 • Consolidated income after net financial items amounted to • NCC Invest was discontinued at the end of 1999, following sek 1251 m.