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ÅF - Summary of Annual Report for 2009

Published February 17, 2010

 Jonas Wiström, President/CEO                     +46 (0)70-608 12 20

 Jonas Ågrup, CFO                                 +46 (0)70-333 04 95

 Viktor Svensson, Director, Corporate Information +46 (0)70-657 20 26


Fourth quarter 2009

·          Operating  income  totalled  SEK  1,288 million  (Q4 2008: SEK 1,345
million)

·         Operating profit was SEK 110 million (SEK 146 million)

·         Operating margin was 8.5 percent (10.9 percent)

·         Earnings per share, before dilution: SEK 4.61 (SEK 5.41)



Full year 2009

·          Operating income  totalled SEK  4,692 million (Q1-Q4 2008: SEK 4,570
million)

·         Operating profit was SEK 388 million (SEK 479 million)

·         Operating margin was 8.3 percent (10.5 percent)

·         Earnings per share, before dilution: SEK 15.86 (SEK 19.08)



Proposals for dividend and share split

·          The Board proposes  a dividend for  2009 of SEK 8.00 per share (2008:
SEK 6.50 per share) before proposed split

·         The Board proposes a 2:1 share split



A few words from the President, Jonas Wiström

The past year presented a great many challenges and in this respect the fourth
quarter was no exception. Nevertheless, ÅF succeeded in reporting its second
best result to date and, given the state of the market, satisfactory earnings.
Most of the indicators suggest that 2010 will also be a challenging year -
albeit on the whole somewhat better than 2009.



As a consequence of the economic downturn our capacity utilisation rate declined
slowly throughout 2009. However, thanks to a more profitable portfolio of
services and continued reductions in our costs, our profits did not fall to the
same degree. Operating income rose by three percent compared with the previous
year, although this was chiefly attributable to corporate acquisitions. Organic
growth for the year was negative at -4 percent.



When looking at the performance of the individual divisions, it is Energy that
this time deserves special mention for the good progress it made during the
second half of the year on the back of strong earnings in Finland, Russia and
Switzerland. Profitability for the Group's Inspection Division on the other hand
continues to be eroded by high cost of developing testing equipment.



Our objective for 2010 is to continue to report levels of profitability that
place us among the best performers in our industry at the same time as we
increase our growth rate. Thanks to our strong financial standing we are in a
good position to make further acquisitions in existing or new markets in Europe,
thus helping to achieve our ambition of growing through a more or less evenly
balanced mix of organic growth and corporate acquisitions.


Sales and earnings, Q4 2009



Operating income totalled SEK 1,288 million, a 4 percent reduction from the
figure of SEK 1,345 million for the corresponding period in 2008.



Operating profit amounted to SEK 110 million (Q4 2008: SEK 146 million), and the
operating margin was 8.5 percent (10.9 percent).



Capacity utilisation was 71 percent (73 percent).



Profit after tax amounted to SEK 80 million (SEK 94 million).



Earnings per share, before dilution, were SEK 4.61 (SEK 5.41).


Sales and earnings, Q1-Q4 2009


Operating income for the year as a whole totalled SEK 4,692 million, a 3 percent
increase on the figure of SEK 4,570 million for 2008.



Operating profit amounted to SEK 388 million (Q1-Q4 2008: SEK 479 million), and
the operating margin was 8.3 percent (10.5 percent).



Capacity utilisation was 71 percent (74 percent).



Profit after tax amounted to SEK 275 million (SEK 328 million).



Earnings per share, before dilution, were SEK 15.86 (SEK 19.08).



Alecta



Operating profit for the fourth quarter of 2008 was affected by a pension
premium reduction from Alecta that had a positive impact of SEK 11.5 million on
earnings. For the year as a whole the effect of this premium reduction was SEK
40 million.



Important events during Q4 and after the reporting date



Through its Engineering Division, ÅF took over two firms with a total of 27
consultants in Malmö and Gothenburg. The first takeover was of Etteplan in Malmö
with 14 consultants, and the second of Elektroautomatik in Gothenburg with 13
consultants.



ÅF gave notice of a reorganisation within the Group that came into force on 1
January 2010. As a result of this reorganisation

-          Swedish operations within the Energy Division, with 130 co-workers,
were transferred to the Engineering Division;

-          the operations of the Engineering Division in Estonia, Finland and
the Czech Republic, with a total of 70 co-workers, were transferred to the
Energy Division.


ÅF embarked upon a process of extensive collaboration with the National Olympic
Committees in Sweden, Norway, Finland and Switzerland that entitles ÅF to use
the symbol of the Olympic rings in its marketing activities. ÅF has also been
appointed "Green Advisor".



Investments


Gross investment in property, plant and equipment for 2009 as a whole totalled
SEK 43 million (2008: SEK 124 million). In 2008 SEK 32 million were invested in
land and buildings to meet the growth in business for ÅF's Swiss subsidiary ÅF
Colenco and SEK 43 million were invested in ÅF's new headquarters in Solna.



Cash flow and financial position


Operating cash flow for the fourth quarter was SEK 150 million (Q4 2008: SEK
156 million). Total cash flow for the same period was SEK 89 million (SEK -66
million).


Operating cash flow for the period January-December 2009 was SEK 306 million
(SEK 321 million).Actively work to reduce the capital tied up in accounts
receivable have been paid off.

Total cash flow for the year was SEK 66 million (SEK -54 million). Acquisitions
completed and additional considerations paid amounted to a total of SEK 40
million (SEK 145 million).



The Group's liquid assets at the end of the reporting period totalled SEK 345
million (SEK 290 million). The Group's net loan debt at the end of the reporting
period totalled SEK 44 million (SEK 174 million).


Equity per share was SEK 107.36 and the equity/assets ratio was 51.0 percent. At
the beginning of 2009 equity per share was SEK 99.46 and the equity/assets ratio
was 47.1 percent. On 31 December 2009 equity totalled SEK 1,827 million (31 Dec.
2008: SEK 1,699 million).


Divisional performance, Q4 2009



 Energy Operating income Q4: SEK 381 million (SEK 398 m)

        Operating margin Q4: 12.4% (12.7%)



        Operating income Q1-Q4: SEK 1,290 m (SEK 1,051 m)

        Operating margin Q1-Q4: 9.7% (12.4%)



The Energy Division is a front-rank international energy consultant and a world
leader in nuclear power consulting.


The market for energy consulting picked up during the fourth quarter, with
improvements in the credit market and a more stable situation in the global
economy helping to fuel increased activity. At the same time, the urgency of the
climate issue is becoming more and more noticeable in terms of the effect this
is having on the modernisation of energy production worldwide.



Well-filled order books and the improved market situation combined to help
Energy to report a higher level of profitability for the fourth quarter than
during the corresponding period in the previous year (after adjustments were
made to take account of the Alecta premium reduction in 2008).



Profitability for the final quarter of 2009 was highest in the units in Finland
and Switzerland, both of which are involved in major international project
management assignments in Europe and Asia. These two units, with a total of
almost 500 employees, reported operating margins in excess of 13 percent for the
fourth quarter. The Energy Division's operations in Russia also continued to
report a good level of profitability, while profits were lowest in Sweden.



 Engineering Operating income Q4: SEK 346 million (SEK 376 m)

             Operating margin Q4: 8.4% (13.0%)



             Operating income Q1-Q4: SEK 1,316 m (SEK 1,452 m)

             Operating margin Q1-Q4: 9.6% (11.0%)





The Engineering Division is Northern Europe's leading technical consultant for
industry.



Engineering's performance was adversely affected by a slight dip in demand
during the fourth quarter at the same time as a couple of major projects were
brought to a conclusion. This led to a fall in capacity utilisation and,
consequently, lower profits. Although the economic situation seems to have
stabilised, several sectors of industry remain cautious about new investments.



Earnings were buoyed up, however, thanks to the combination of reduced costs and
the positive effects of transferring unoccupied consultants to business areas
and regions where the outlook is brighter. Demand was strongest from the mining,
nuclear power, food processing and pharmaceutical industries. Clients'
investments relate mainly to measures to rationalise production facilities,
projects related to environmental improvements, the development of alternative
fuels and managed transitions to more efficient energy use.



It is worth noting that the market for consulting services in the pulp and paper
industry showed signs of a recovery towards the end of 2009 after several years
of low levels of activity. In December the division won new contracts with SCA
and Mondi.



 Infrastructure Operating income Q4: SEK 485 million (SEK 515 m)

                Operating margin Q4: 9.8% (10.1%)



                Operating income Q1-Q4: SEK 1,774 m (SEK 1,859 m)

                Operating margin Q1-Q4: 8.0% (10.5%)





The Infrastructure Division holds a leading position in consulting services for
infrastructure development in Scandinavia.



The market for the Infrastructure Division showed signs of a slight recovery
during the fourth quarter. Several business areas strengthened their market
positions and reported improvements in earnings. This means that profitability
for the Infrastructure Division as a whole was better than in the corresponding
period in 2008 (after adjustments were made to take account of the Alecta
premium reduction in 2008).



The final quarter of the year also saw an improvement in profitability for the
Product Development business area, who work mainly with the telecommunication
industry. Likewise, operations in Sound & Vibrations also showed a positive
trend during the same period.



The division's largest business area, Installations, with operations in Sweden
and Norway, reported a good fourth quarter, especially in view of the fact that
the market for construction-related services for industry and private
construction and property companies remained relatively weak. The market segment
that once again showed the most rapid growth was energy efficiency conversions
in existing properties. Infrastructure Planning continued to report strong
organic growth and rising profits in a market that is now driven by large-scale
investments in the Nordic countries' road and rail networks.



 Inspection Operating income Q4: SEK 107 million (SEK 109 m)

            Operating margin Q4: 0.6% (10.4%)



            Operating income Q1-Q4: SEK 407 million (SEK 361 m)

            Operating margin Q1-Q4: 7.0% (12.1%)





The Inspection Division works with technical inspections.

Earnings for the fourth quarter were disappointing. The division's core business
developed by and large according to expectations, but profits were again eroded
by the high cost of developing testing equipment and specialist expertise for
the nuclear power industry. These costs are running far in excess of those
budgeted for this initiative, so an action programme has now been implemented to
reduce development costs and raise income. Fourth quarter earnings were also
affected by a SEK 4 million write-down on a major fixed-price project and costs
of a further SEK 1 million relating to the termination of loss-making
activities.



The market for technical inspections remained unchanged in the fourth quarter,
although growth was lower than in the corresponding period for 2008. Demand
remains good from the nuclear power industry. The Inspection Division has
long-term contracts with all three Swedish nuclear power plants and with a
handful of plants outside Sweden. Demand also rose from the rail industry.



Number of employees


The total number of ÅF employees at the end of the year was 4,428 (2008:
4,448): 3,161 in Sweden and 1,267 outside Sweden. Translated into full-time
equivalents, this corresponds to 4,182 employees (2008: 3,948).


ÅF shares


The ÅF share rose by 64 percent during 2009. During the same period the
Stockholm Stock Exchange all-share index (OMXSPI index) rose by 47 percent.



Buy-back



During the fourth quarter of 2009 60,000 ÅF shares were acquired under the
mandate given to the Board at the Annual General Meeting of ÅF shareholders in
2009. In all a total of 105,000 ÅF shares were acquired through buy-backs during
2009. The purpose of the buy-backs is to safeguard the company's obligations
with regard to the "Performance Related Share Programme" (PSP) approved by the
Annual General Meeting. ÅF holds a total of 142,000 of the company's own class B
shares relating to PSP 2008 and PSP 2009.


Shareholders' dividend



The Board proposes a dividend for 2009 of SEK 8.00 per share (2008: SEK 6.50 per
share), before proposed split.


Share split



The Board proposes a 2:1 share split, which means that one current share in ÅF
will be replaced by two new ones.


Accounting principles

This interim report has been prepared in accordance with IAS 34 ("Interim
Financial Reporting"). The report conforms with International Financial
Reporting Standards (IFRS), as well as with statements on interpretation from
the International Financial Reporting Interpretations Committee (IFRIC) as
approved by the European Commission for use in the EU, and with the relevant
references to Chapter 9 of the Swedish Annual Accounts Act. The report has been
drawn up using the same accounting principles and methods of calculation as
those in the Annual Report for 2008 (see Note 1, page 83). The parent company
has implemented the Swedish Financial Reporting Board's Recommendation RFR 2.1
("Accounting for Legal Entities"), which means that the parent company in the
legal entity shall apply all the IFRS and related statements approved by the EU
as far as this is possible, while continuing to apply the Swedish Annual
Accounts Act in the preparation of the legal entity's accounts.


Parent company

Parent company sales, primarily for various intra-group services, totalled SEK
294 million for the period January-December 2009 (Jan-Dec. 2008: SEK 253
million). The parent company reported a loss of SEK 4 million (SEK -39 million)
after net financial items. Cash and cash equivalents totalled SEK 4 million (SEK
4 million), and gross investment in machinery and equipment for the year
amounted to SEK 10 million (SEK 51 million). In 2008 a total of SEK 43 million
was invested in ÅF's new headquarters. The parent company has increased its
participation in Group and associated companies to SEK 2,117 million (SEK 1,019
million), due to internal restructurings of the shareholdings.


Risks and uncertainty factors

The significant risks and uncertainty factors to which the ÅF Group is exposed
include business risks linked to the general economic situation and the
propensity of various markets to invest, the ability to recruit and retain
qualified co-workers, and the effect of certain political decisions. In
addition, the Group is exposed to a number of financial risks, including
currency risks, interest-rate risks and credit risks. The risks to which the
Group is exposed are described in detail on pages 56-60 of ÅF's Annual Report
for 2008. No significant risks are considered to have arisen since the
publication of the annual report.


Financial information - schedule for 2010


 Interim report January-March 2010       5 May

 Interim report January-June 2010        14 July

 Interim report January-September 2010   21 October



Shareholders'          Meeting          (Annual         General         Meeting)


The Annual General Meeting of shareholders in ÅF AB will take place at 17.00 (5
p.m.) on 5 May 2010 at ÅF's head office at Frösundaleden 2, Solna. Formal notice
of the meeting will be issued by means of an advertisement placed in a national
Swedish daily newspaper. The ÅF Group's Annual Report for 2009 will be
despatched by post to shareholders who have requested a copy from ÅF's Corporate
Information Department. It will also be available at ÅF's head office and on the
website (www.afconsult.com <http://www.afconsult.com/>) from 8 April onwards.


Stockholm, Sweden - 17 February 2010

Jonas Wiström

President and CEO, ÅF AB


This  interim  report  has  not  been  subjected  to  scrutiny  by the company's
auditors.

The  information  in  this  interim  report  is  that which ÅF AB is required to
disclose  under Sweden's Securities Market  Act and/or the Financial Instruments
Trading Act. The information was released for publication at 08.30 C.E.T. on 17
February                                                                   2010.

All  forward-looking statements in  this report are  based on the company's best
assessment  at the time of the report.  Like all assessments of the future, such
statements  include  risks  and  uncertainties  that  may entail that the actual
outcome                               is                              different.


The  full report  including tables  can be  downloaded from  the following link:





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