NCC reorganizing as part of new growth strategy

During the autumn, NCC will present a new strategy for the next five years that
includes an increased focus on growth in the areas of construction and civil
engineering in the Nordic region. Accordingly, the Board of NCC has decided on a
new organization. In addition, the Board has tasked the management with
investigating the possibility of creating an independent, stock market listed,
residential development company based on the existing NCC Housing business area.
NCC’s new strategy will be launched at year-end and involves, among other items,
NCC focusing on profitable growth with particular emphasis on construction and
civil engineering in areas including infrastructure and refurbishment. Shared
work methods, one NCC and a sustainability focus are other cornerstones of the
new strategy.

“Favorable market conditions in the Nordic region mean that interest from
international players is increasing in our domestic markets and NCC is now
meeting highly specialized competitors in tendering processes. Through the
changes that are now being implemented, NCC will be equipped with an specialized
Nordic organization with a strong local presence. Specialization will give us
more scope to develop and to offer common concepts and solutions to our
customers in all our markets,” says Peter Wågström, President and CEO of NCC.

With the objective of increasing possibilities for profitable growth, NCC is
implementing a new organization from the end of the year, in which the seven
existing business areas will become five business areas. The four existing,
country-based Construction units will be divided into two Nordic business areas
– NCC Infrastructure and NCC Building. NCC Roads will become the new NCC
Industry business area, with the exception of road-services operations, which
are moving to NCC Infrastructure. NCC Housing and NCC Property Development will
remain as business areas (see attached organization chart).

HR, communication and sustainability are being organized into a shared unit,
Corporate Relations, which is represented in the Executive Management Group.
Purchasing is another core element of NCC’s operations that is being raised to
Executive Management Group level.

The new Executive Management Group comprises the President and CEO Peter
Wågström, Business Area Manager for NCC Building Klaus Kaae (currently Business
Area Manager for NCC Construction Denmark), Business Area Manager for NCC
Infrastructure Svante Hagman (currently Business Area Manager for NCC
Construction Sweden), Business Area Manager for NCC Industry Jyri Salonen
(currently Business Area Manager for NCC Roads), Business Area Manager for NCC
Housing Joachim Hallengren, Business Area Manager for NCC Property Development
Carola Lavén, CFO Ann-Sofie Danielsson, General Counsel Håkan Broman, Chief
Corporate Relations Officer Ann Lindell Saeby and Chief Purchasing Officer Peter
Gjörup.

The reorganinization is a proactive initiative to capitalize on growth
opportunities. However, the coordination of business areas and corporate
functions can mean that a certain number of redundancies may arise. NCC
estimates the costs associated with the reorganization to amount to SEK 250
million. The amount will mainly be charged against NCC’s earnings for the fourth
quarter of 2015 and first quarter of 2016.

In addition, the Board of NCC has tasked the management with analyzing
conditions for creating an independent residential development company based on
the NCC Housing business area and distributing the new company’s shares to NCC’s
shareholders under the Lex Asea rules.

In recent years, NCC has built successful residential development operations,
NCC Housing, which reported sales of about SEK 10 billion in eight countries in
2014. The number of housing units under construction has increased from about
4,500 to 8,500 and capital employed amounts to slightly more than SEK 11
billion.

Residential development is a capital-intensive business that primarily targets
private customers and a division of NCC would create greater possibilities for
leveraging the growth opportunities that NCC has identified in the residential
development market and the construction market.

Following any spin-off, the NCC Group would become a more focused company with
greater possibilities for specialization in core areas.

“We are currently investigating whether an independent, listed, residential
development company could be advantageous for both shareholders and the
company,” says Tomas Billing, Chairman of NCC.

The Board’s objective is to complete the analysis in the autumn and to present
further information to shareholders in the interim report on November 6.

NCC is holding a teleconference for the media and analysts at 10:00 a.m. (CET).
To participate in this teleconference, call +46 (0)8-519 993 55 (SE), +44 203
194 05 50 (UK) or +1 855 269 26 05 (US), five minutes prior to the start of the
conference. State “NCC”.

NCC’s new strategy will be presented in more detail at the company’s capital
market day in Stockholm, Sweden on November 26.
For further information, please contact:

Peter Wågström, President and CEO, NCC AB, +46 70 527 31 31

Anna Trane, Press & PR Manager, NCC, Tel: +46 70 884 74 69

NCC’s media line +46 8 585 519 00, E-mail: press@ncc.se, NCC’s image
bank (press@ncc.se)
This is the type of information that NCC could be obligated to disclose pursuant
to the Securities Market Act. This information was issued for publication on
September 21, 2015 at 8:00 a.m.

About NCC Our vision is to renew our industry and provide superior sustainable
solutions. NCC is one of the leading companies in construction, property
development and infrastructure in Northern Europe, with sales of SEK 57 billion
and 18,000 employees in 2014. The NCC share is listed on the Nasdaq Stockholm
exchange.