Sweco : Q1 2024

Q1

Interim Report

January-March 2024

Sweco AB (publ)

16 May 2024

Positive start to the year

January-March 2024

• Net sales increased to SEK 7,720 million (7,140)
• EBITA amounted to SEK 793 million (849), margin 10.3 per cent (11.9)
• EBITA increased 16 per cent year-on-year after adjustment for the significant negative calendar effect in the quarter
• EBIT amounted to SEK 778 million (839), margin 10.1 per cent (11.7)
• Net debt amounted to SEK 3,118 million (2,916)
• Net debt/EBITDA amounted to 1.1x (1.1)
• Profit after tax decreased to SEK 558 million (625), corresponding to SEK 1.55 per share (1.75)

Sweco plans and designs the sustainable communities and cities of the future. Together with our clients and the collective knowledge of our 22,000 architects, engineers and other specialists, we co-create solutions to address urbanisation, capture the power of digitalisation and make our societies more sustainable. Sweco is Europe's leading engineering and architecture consultancy, with sales of approximately SEK 29 billion (EUR 2.5 billion). The company is listed on Nasdaq Stockholm. This information is information that Sweco is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons, at around 07:20 CEST on 16 May 2024.

CEO comment

A positive start to the year

Sweco delivered a good first quarter. Net sales increased

8 per cent and EBITA improved 16 per cent, adjusted for the significant negative calendar effect from Easter.

The improvement was mainly driven by continued positive momentum in pricing as well as strong demand within the green transition in energy, transportation, industry and urban development. We are also seeing increasing demand in growth segments such as pharma, defence and data centres. Sweco's strong market position is reflected in a growing order backlog.

Overall, the demand for Sweco's services was favourable in most segments, although demand in residential and commercial buildings, as well as traditional industry, remained weaker.

A solid quarter with operational improvements

Net sales increased to SEK 7,720 million (7,140), with an organic growth of 4 per cent, adjusted for calendar. Nomi- nally, EBITA decreased to SEK 793 million (849) and the margin to 10.3 per cent (11.9), both driven by the large negative calendar effect. Adjusted for calendar effects, EBITA increased 16 per cent or SEK 139 million.

The EBITA improvement was mainly driven by higher average fees, a growing number of employees and contribution from acquisitions, while higher personnel expenses and a lower billing ratio impacted negatively.

Six out of eight business areas reported positive organic growth and EBITA improvements. Sweco Belgium, Denmark and Sweden all reported good organic growth and EBITA improvements, with double-digit margins. Germany and Central Europe continued to improve operational performance with strong organic growth and an increasing EBITA and margin. Finland improved its margin in the quarter, partly driven by the previously communicated redundancy program, and is also taking further improvement actions. The Netherlands reported higher EBITA levels. The weaker performance in Norway is explained by the calendar effect from the early Easter holiday.

The repositioning of Sweco's UK business is progressing and the performance improved significantly compared to the previous quarter. As part of the turnaround, the UK is making further personnel reductions in the first half

of 2024.

Projects and acquisitions

The projects won in the first quarter highlight Sweco's multi-­disciplinary role in the green transition. In the Nether- lands, Sweco won a SEK 1,100 million contract to support energy operator Gasunie in the development of new energy infrastructure for the transportation of hydrogen, carbon dioxide, renewable gas and heat. In Belgium, Sweco has been commissioned to design an open-access rail terminal in Zeebrugge's back port and in Germany, Sweco will support the City of Bremen in the expansion of its public transpor- tation. In Norway, we will provide architectural design to support a sustainable uplift of an urban area in Oslo.

In early January we closed the first acquisition this year - Econsultancy. With their team of 200 environmental experts, we are strengthening Sweco's position and offer- ing, both in the Netherlands and across Europe within ecological and environmental services.

Priorities going forward

Our focus ahead is clear: to capture growth opportunities in the market and deliver continued profitable growth, with improved margins. This requires investments in attractive segments in combination with firm measures to optimise our offering and efficiency. The actions we are taking in the UK, the adjustments of staffing in Finland, Norway and Sweden, and the ongoing organisational review to streamline our operations in all business areas are designed to drive efficiency. A lean, efficient and client-centric organisation has always been and will continue to be our recipe for success.

Åsa Bergman President and CEO

Sweco AB (publ) Interim Report January-March 2024

2

Europe's leading architecture and engineering consultancy

Sweco operates at the centre of the green transition. With the collective knowledge of our more than 22,000 architects, engineers and other experts, we co-create solutions with our clients that transform societies. Our work approach enables us to offer a combination of global expertise together with local presence and understanding, and by this we are adapting to our clients' business and reality.

Key figures

#1	8	20,500
In the European	Business Areas	Full-time
market		employees
SEK	SEK
29.1 bn	2.5 bn	8.5%
Net sales R12	EBITA R12	EBITA margin R12

Sweco AB (publ) Interim Report January-March 2024

3

Group performance

The first quarter resulted in organic growth of 4 per cent, adjusted for the significant negative calendar effect, and acquired growth of 6 per cent. EBITA increased approximately 16 per cent or SEK 139 million year-on-year, after adjustment for calendar effects.

January-March

Net sales increased 8 per cent to SEK 7,720 million (7,140). Organic growth amounted to approximately

4 per cent, after adjustment for calendar effects. Acquired growth amounted to 6 per cent and currency effects were 0 per cent in the quarter.

Organic growth was mainly driven by higher average fees and a higher number of employees, while higher vacation absence and a lower billing ratio had a negative impact.

The quarter had 15 fewer working hours compared with the same period last year. This corresponded to a negative year-on-year impact of approxi-

mately SEK 195 million on net sales and EBITA.

EBITA amounted to SEK 793 million

1. and the EBITA margin amounted to 10.3 per cent (11.9). The decline in EBITA and in EBITA margin was entirely driven by the significant negative cal- endar effect.

Adjusting for calendar effects, EBITA increased approximately 16 per cent or SEK 139 million year-on-year. The six business areas Germany & Central Europe, Denmark, Finland, Sweden, Belgium and the Netherlands achieved increasing EBITA levels, adjusted for calendar effects. Norway was in line with last year, while the UK reported lower earnings.

Overall for the Group, the EBITA increase was driven by higher average fees, a higher number of employees and contributions from acquisi- tions, while higher personnel expenses and a lower billing ratio had a negative impact.

The billing ratio decreased to 72.7 per cent (73.2).

Total net financial items reduced

to SEK -65 million (-39), primarily due to higher average net debt and higher interest rates.

Earnings per share decreased to SEK 1.55 (1.75).

KPIs	Jan-Mar	Jan-Mar	Apr 2023-	Full-year
2024	2023	Mar 2024	2023
Net sales, SEK M	7,720	7,140	29,102	28,523
Organic growth, %	2	12		8
Acquisition-related growth, %	6	3		6
Currency, %	0	3		4
Total growth, %	8	17		17
Organic growth adj. for calendar, %	4	10		8
EBITA, SEK M	793	849	2,475	2,531
Margin, %	10.3	11.9	8.5	8.9
Profit after tax, SEK M	558	625	1,600	1,667
Earnings per share, SEK	1.55	1.75	4.46	4.65
Number of full-time employees	20,939	19,416	20,544	20,157
Billing ratio, %	72.7	73.2	73.2	73.3
Normal working hours	489	504	1,947	1 962
Net debt/EBITDA, x2	1.1	1.1		1.1

1. EBITA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITA. For further information, see pages 18 and 20.
2. Net debt/EBITDA is an alternative performance measure (APM). Net debt is an alternative performance measure (APM) defined as financial debt (comprised almost exclusively of interest-bearing bank debt) less cash and cash equivalents and short-term investments. Lease liabilities are excluded from Net debt. EBITDA is an alternative performance measure (APM) defined as Earnings before Interest, Taxes, Depreciation & amortisation and Acquisition-related items, under which all leases are treated as operating leases and the total cost of the lease affects EBITDA. For further information, see pages18 and 27.

Sweco AB (publ) Interim Report January-March 2024

4

Employees

The number of full-time employees amounted to 20,939 (19.416) in the period.

Market

Most business areas experienced good demand for Sweco's services in the infrastructure, water, environ- ment, energy and industry segments. However, demand for services in parts of the building and real estate segments remained weak, with a negative impact primarily in residential and commercial real estate.

Net sales by quarter and rolling 12 months

SEK M

Quarter		Rolling 12 months

8,000	32,000
7,000	28,000
6,000	24,000
5,000	20,000
4,000	16,000
3,000	12,000
2,000	8,000
1,000	4,000
0	0
03 06 09 12 03 06 09 12 03 06 09 12 03 06 09 12 03 06 09 12	03
19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23	24

Outlook

Geopolitical instability continues to impact the general economy and Sweco's markets. While some of Sweco's market segments are negatively impacted, there is a concurrent increase in demand in other seg- ments. Overall demand for Sweco's services normally follows the general macro-economic trend, with some time lag.

Sweco does not provide forecasts.

Events during the quarter

EBITA by quarter and rolling 12 months

SEK M

Quarter	Rolling 12 months
900		2,700
800		2,400
700		2,100
600		1,800
500		1,500
400		1,200
300		900
200		600
100		300
0		0
03 06 09 12 03 06 09 12 03 06 09 12 03 06 09 12 03 06 09 12	03
19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23	24

On 10 January, Sweco announced the acquisition of Econsultancy B.V. in the Netherlands. The company offers services within the areas of climate change and the green transi- tion, with a strong focus on ecological and environmental sustainability. Econsultancy has over 200 experts and annual net sales of approximately SEK 188 million. The acquisition was consolidated into Sweco Netherlands as of January 2024.

Events after the quarter

On 26 April, dividends totalling SEK 1,059 million (968) were distributed to Sweco AB shareholders.

Cash flow and financial position

Group cash flow from operating activities totalled SEK 351 million

1. for the first quarter. Net debt increased to SEK 3,118 million (2,916).

The Net debt/EBITDA ratio was 1.1x (1.1).

Available cash and cash equivalents, including unutilised credit lines, totalled SEK 3,829 million (3,085) at the end of the quarter.

Purchase considerations paid to acquire companies and operations had an impact of SEK -101 million (-1,217) on the Group's cash and cash

equivalents. Divestments of companies and operations had an impact of SEK 11 million on the Group's cash and cash equivalents. No divestments were made during the same period last year.

No repurchases of Sweco shares were made during the period or during the same period last year.

Investments, January-March 2024

Investments in equipment totalled SEK 75 million (69) and were primarily attributable to IT investments. Depreciation of equipment amounted to SEK 65 million (55) and amortisation of intangible assets totalled SEK 48 million (36).

Sweco AB (publ) Interim Report January-March 2024

5

New projects

Energy

Sweco will be supporting energy operator Gasunie in the Netherlands in the development of a new energy infrastructure enabling the operator's transition from the transportation of natural gas to hydrogen, CO2, renewable gas, and heat. To cater for this, 1,200 kilometres of new and existing pipelines are to be prepared for hydro- gen. Sweco will be providing consul- tancy, engineering and environmental studies. Gasunie has allocated

SEK 3,200 million for the framework contract for the next ten years, with Sweco's share being approximately SEK 1,100 million evenly distributed over a period of ten years.

On behalf of the Flemish Department of Mobility and Public Works (dMOW) in Belgium, Sweco has started developing a hydrogen vision for passenger and freight transport. The objective of this vision is to unite the different views of stakeholders on the role of hydrogen in road transport, shipping, aviation, infrastructure networks and railways. The contract value is SEK 1 million.

Sweco will support Danish national transmission system operator Energinet by conducting preliminary studies for four offshore wind farms in the Kattegat and the Baltic Sea. The end goal is to enable an independent green energy transition in the Nordics. Sweco collaborates with the Dutch research institute Deltares including a multidisciplinary and international team of wind, MetOcean and modelling specialists as well as experts for statistics and automation. The project begins in March 2024 and is expected to be completed by early 2025.

P2X Solutions, a Finnish pioneer in green hydrogen production and Power-­to-X technology, aims to start its second industrial-scale production

Net debt/EBITDA, x
	1.5	1.5
1.1			1.1	1.1
Q1	Q2	Q3	Q4	Q1
2023	2023	2023	2023	2024

plant for green hydrogen and synthetic fuels, in Joensuu in Finland. Sweco's scope of work includes all engineering disciplines in front-end engineering design (FEED). This is a continuum of a previous project, where Sweco supported P2X solutions in the establishment of Finland's first industrial scale hydrogen production plant in the region of Harjavalta. P2X Solutions' goal is to build 1,000 MW of electrolysis capacity in the next ten years.

Transportation and infrastructure Sweco is analysing the Roslagsbanan light rail line's new section into Stock- holm City, aiming to enhance connectivity from northeastern municipalities and ease congestion on the metro system. The new four-kilometresection will include two new stations and the removal of one section for potential housing development. Commissioned by Region Stockholm, Sweco's assignment includes preparation of a railway plan and an environmental impact assessment. The project started in January 2024, with completion expected in 2026, and is valued at around SEK 20 million.

Commissioned by the Swedish Transport Administration, Sweco is working on modernising the Tomteboda railway yard to enhance Stockholm's rail capacity and to meet future demands

for sustainable railway traffic. The aim is to alleviate congestion at Stockholm Central Station, allowing for more and longer trains, increasing passenger capacity up to 80 percent. The project is valued at around SEK 40 million.

Sweco is designing an open-access rail terminal in Zeebrugge's back port in Belgium for the client POM West-­ Flanders, the provincial agency for socio-­economic affairs. The terminal will handle unaccompanied trailer traffic, using an innovative system to load and unload more trailers, including non-craneable ones. Faster operations will shorten train turnaround times, enabling the transport of reefer trailers by rail. This terminal will enhance Zeebrugge port's modal split, promoting sustainable transport and increasing rail's share. The contract value is SEK 18 million.

The German City of Bremen wants to expand and improve the public transport infrastructure and thereby strengthen mobility and climate pro- tection. A key step is the extension of tram line 2 and a new track connec- tion, with a total of approximately five kilometres of light rail and about four stations. Sweco is responsible for the transportation engineering study, including the evaluation of various route and cross-section options and is advising during the extensive community participation process.

Sweco signed a contract with the Szczecin and Świnoujście Seaports Authority S.A. in Poland for the supervision and management of the construction of the hydrotechnical component of the installation terminal for offshore wind farms in the port of Świnoujście. The contract covers the modernisation of the existing quay and preparation for the construction of a new section. The value of the Sweco contract is SEK 5 million.

Sweco AB (publ) Interim Report January-March 2024

6

Health care

Sweco is leading the consortium developing the Südspidol hospital complex in Luxembourg for Centre Hospitalier Emile Mayrisch (CHEM). The complex will be a large health hub with an area of 121,000 m² and around 600 beds. Sweco is handling all of the design phases, including BIM design, permit processes, tender- ing, budget control, construction management and commissioning. The project, one of Sweco's most ambitious, is expected to be operational by the end of 2033.

Sweco has signed a contract with the Jan Mikulicz-Radecki University Clinical Hospital for the management and supervision of the construction of the Integrated Pediatric Center of the University Clinical Hospital in Wrocław, Poland. This modern pediatric centre will combine the functions of a hospital and specialised outpatient clinics; this will shorten the hospitalisation time, placing the main emphasis on outpatient treatment by integrating the various specialties, knowledge and experience of the medical staff. The planned  completion date of the investment is 2028. The total cost of the investment is over SEK 590 million. The value of the Sweco contract is SEK 13 million.

Urban planning

Sweco has been awarded a contract by Norwegian real estate developer KLP for the architectural design of the urban transformation project Pilestredet 75 in Oslo. The project will contribute to transformation and urban uplift in line with the City of Oslo's strategy for sustainable urban and housing develop- ment. Sweco is responsible for the building permit application process and will also contribute to the BREEAM

(Building Research Establishment Environmental Assessment Method) certification processes, to ensure compliance with the necessary requirements. The contract with AF Bygg is approximately SEK 10 million.

Sweco has been tasked by Helsing- borg City's property administration to project manage Helsingborg's new public swimming and bathing facility, catering to a growing city and harbour development. The facility aims for integrating the "three pipes" circular sewerage system for better waste management and biogas production. Stakeholder dialogues are ongoing to align with public and city needs. Construction is tentatively scheduled to begin during the second half of 2025.

The O'Devaney Gardens redevelopment will deliver 1,044 new homes in the heart of Dublin. When complete, 50 per cent of the A-rated homes will be delivered to Dublin City Council for social and affordable housing. This is a significant project for Dublin City and will be one of the most sustainable developments in Europe. Sweco has the role of Assigned Certifier for this project, for the client Bartra ODG Limited, part of the property developer Bartra Group. Sweco is overseeing the buildning control process and certifying compliance with building regulations.

Dredge operator and wind farm builder DEME has initiated a program across several of their sites in Flanders, Belgium, including soil treatment locations and landfills, to assess the presence of PFAS in soil and ground- water, and to plan for potential reme- diation. Sweco has been entrusted with the task of examining the soil contamination and aiding in the project development for each site.

Water management

To help preserve Lake Sevan, the largest and most important freshwater source in Armenia, Sweco is participating in a project for assessment of the consequences of raising the lake's water level by over 6 metres - back to the water levels of the year 1903. Sweco is using detailed mathematical modelling and long-term observed data for future climate change sce- narios, which is crucial for decision-­ making. Additionally, Sweco is providing consultancy support for impact assessment and roadmap development. The project is part of the EU4Sevan programme for the environmental protection of the lake.

Sweco is supporting the Public Service of Wallonia Mobility and Infrastructure in Belgium to improve and modernise locks on the navigable waterways between Antwerp and Seneffe. New, more reliable gate operation gantries are planned. Sweco is analysing the impact of these new structures on the existing structures, with a focus on interface studies and execution phasing coherence. Sweco's role encompasses all necessary studies, tests and investigations related to soil and waste valorisation during construction.

Sweco AB (publ) Interim Report January-March 2024

7

Photo: CHEM

Sweco is leading the consortium to develop the Südspidol hospital complex in Luxembourg for Centre Hospitalier Emile Mayrisch (CHEM). The complex will be a large health hub with an area of 121,000 m² and around 600 beds.

The German City of Bremen wants to expand and improve the public transport infrastructure and thereby strengthen mobility and climate protection. Sweco will among others, advise in the extensive community participation process.

Photo: SBMS

Sweco AB (publ) Interim Report January-March 2024

8

Business Area

Overview

Sweco operates its business in and through eight geographical business areas: Sweden, Norway, Finland, Denmark, the Netherlands, Belgium, the UK, and Germany and Central Europe.

Ireland4)

	Finland
Norway
	Sweden	Estonia1)
Denmark
		Lithuania2)
	Germany
Netherlands
		Poland2)
UK
Belgium	Czech Republic2)
Luxembourg3)

1) Part of Business Area Finland

2) Part of Business Area Germany and Central Europe

3) Part of Business Area Belgium

4) Part of Business Area UK

Sweco's markets

Sweco is present in some 15 European markets and holds well-­established positions in its business areas. It is primarily in these areas that the company will grow in the future. These markets are economically and politically stable, while also being close to each other geographically and culturally.

Sweco AB (publ) Interim Report January-March 2024

9

Sweco Sweden

Organic growth amounted to 6 per cent and EBITA increased 7 per cent, adjusted for calendar effects, driven by higher average fees and FTE growth. The market was stable, with green transition and climate adaptation driving demand in many segments, but with residential and commercial real estate remaining weak.

Sales and profit,

January-March

Net sales increased 5 per cent to SEK 2,295 million (2,178). Organic growth was approximately 6 per cent, adjusted for calendar effects, and was mainly driven by a higher number of employees and higher average fees. The year-on-year calendar effect of twelve less hours had a negative impact of approximately SEK 44 million on net sales and EBITA.

EBITA increased approximately 7 per cent, corresponding to SEK 23 million, adjusted for calendar effects. The EBITA increase was mainly driven by higher average fees and FTE growth, while higher personnel expenses and a lower billing ratio impacted nega- tively. The EBITA margin decreased to

12.6 per cent (14.2), driven by the large negative calendar effect.

Sweco Sweden is taking restructuring measures in the first half of 2024, affecting approximately 140 employ- ees. Restructuring costs of SEK 6 mil-

lion have been taken in the first quar- ter, with an additional SEK 35 million expected in the second quarter.

Market

The Swedish market was stable during the quarter, albeit with large variations between the segments. The market for energy investments as well as for water and environmental services was good, partly driven by the green transition and climate adaptation services. Demand for infrastructure services remained sta- ble. The trend in the industry segment remained somewhat uncertain, with the exception of northern Sweden, which continues to be a booming market driven by the green transition. In the real estate market, the weakness in the residential and commercial segments continued. The demand in the public building segment was stable.

Net sales & EBITA margin, rolling 12 months

Net sales, SEK M		EBITA margin, %

10,000				15
8,000				12
6,000				9
4,000				6
2,000				3
0				0
Q1	Q2	Q3	Q4	Q1
2023 2023 2023 2023 2024

In brief

	Jan-Mar	Jan-Mar
Net sales and profit	2024	2023
Net sales, SEK M	2,295	2,178
Organic growth, %	4	10
Acquisition-related growth, %	2	1
Currency, %	0	0
Total growth, %	5	11
Organic growth adj. for calendar, %	6	9
EBITA, SEK M	288	309
EBITA margin, %	12.6	14.2
Number of full-time employees	6,597	6,219

Sweco AB (publ) Interim Report January-March 2024

10