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ANNUAL REVIEW 2012ContentsMidroc EuropeMidroc in brief2012 in briefExecutive Committee CommentsTogether to get there0101020406Business AreasContracting & ConsultingProperty InvestmentsNew Technologies08082024Legal UnitsMidroc ABGranitor Invest ABMidroc Real Estate AB26262830Ownership3206Board of Directors3304 08Produced by: Oxenstierna & Partners. Photography: Mats Bengtsson, Hans Berggren, Åke E:son Lindman, Emilia Göransson Ahlgren, AdamIhse, Martin Palvén, H-O Utsi, Alexander von Sydow, Heliospectra, JS-Sverige and Midroc.Midroc Europe Annual Review 2012

Midroc EuropeMidroc in briefOur shared vision is forour companies’ activitiesto contribute to a betterfuture for our employees,clients and partners.”Midroc Europe is the marketing brand that brings together the European-basedMidroc companies. Financial strength combined with highly competent humanresources, shared values and culture form the basis for Midroc Europe.The companies forming Midroc Europe operate predominantlyin the fields of properties, construction, industryand environmental technology. Whilst the greater part ofits operational activities are in Sweden, the group is alsopermanently represented in France, Germany, India, Poland,Saudi Arabia, South Africa and the UK. The group’s businessoperations are divided into three business areas: Contracting& Consulting, Property Investments and New Technologies.Legal structureBusiness activities are conducted through a number ofcompanies, each offering their specific markets specialistservices. The Midroc Europe brand consists primarily ofthree groups of companies headed by Midroc AB, GranitorInvest AB and Midroc Real Estate AB, which account forthe bulk of sales. Also included is the business activities ofMidroc New Technology AB, a venture capital companyfocused on investing in pre-revenue companies withpatented leap technologies.The Midroc VisionOur ObjectiveThrough our way of working, we will demonstrate an indepthunderstanding of stakeholder needs and wishes – so thatour companies are perceived by clients, partners, currentand prospective employees as Best in Class and the preferredchoice. Our shared vision is for our companies’ activitiesto contribute to a better future for our employees, clients andpartners.Midroc Europe’s objective is to develop a portfolio of companieswithin different business areas where each company isprovided the opportunity to develop to their full commercialpotential. The mission puts sustainable profitability beforevolume and risk. Each company of the portfolio contributes toand benefits from the strength of belonging to a larger group.Midroc Europe Annual Review 2012 |01

Midroc EuropeMIDROC 20122012 in briefKey figuresSEKNet sales 4.0 billionIncome before tax 136.7 millionTotal assets 5.7 billionTotal equity 1.9 billion2,800 employees12%increase innet sales200new MidrocemployeesIncome before taxSEK MillionEmployeesby region2502009200200820111501005020102012SwedenOutsideSweden002 |Midroc Europe Annual Review 2012

January - MarchApril - JuneAfter years of collaboration, BAC Corrosion ControlLtd acquired Rose Corrosion Services Ltd, a UK-basedcompany specializing in corrosion monitoring andinhibition.Exhibition hall MalmöMässan was completed andinaugurated. It was developed and built by Midroc inrecord time.Inauguration of the new Midroc headquarters inStockholm. Rodoverken moved into their new officesin Ödsmål.Midroc New Technology’s portfolio company Heliospectrawon several awards during 2012. Business magazineAffärsvärlden listed the company as one of the 33 mostpromising technology companies in Sweden.Construction of a new LNG terminal in Lysekil in thesouthwest of Sweden commenced. Midroc Project Managementhas a central role in the client’s project organizationand Rodoverken has responsibility for erecting the tank.Metalock Germany undertook a huge two-phase steelmill project by utilizing manning resources from UK,Germany, Sweden and South Africa.July - SeptemberOctober - DecemberMidroc Electro acquired the Swedish consultancyservices company Browik International as part of theirstrategy for geographical market expansion.The upgrading of two key properties in Stockholm,Tändstickspalatset and the property at Gustav Adolfstorg, was completed. Several new prestigious tenantshave moved in.Rodoverken was the largest single contractor in anextensive stop project at Esso Refinery in Slagen, Norway,supporting the customer with 200 people on-site.Preliminary work commenced during the summer.Organizational changes within the Midroc group wereannounced: Metalock Entreprenad, Stirep and MetalockMachining were transferred to the Metalock Group.Midroc Automation was awarded a large order for processand train control systems at the Freeport-McMoRangold and copper mine on New Guinea.Agreements were made with the Malmö municipal housingcompany MKB, regarding development and productionof 187 apartments in the Västra Hamnen district.Midroc Europe Annual Review 2012 |03

Midroc EuropeEXECUTIVE COMMITTEE COMMENTSGrowing strongertogether – in goodtimes and badEntering a new year, we still find ourselves in a harsh economy and a tough market.2012 has largely been characterized by fierce competition and shrinking margins. Inview of the situation, the Midroc companies have demonstrated incredible strength.The strategic investments we have made and the significant projects we are part ofgive us the confidence to say that the prospects for 2013 are good.The persistent economic downturn has hit many of ourcustomers, particularly in the automotive, steel and propertyindustries. Opportunities to offer electric installationsas well as construction and sales in the housing market decreasedsignificantly during the year. To counter the effects,our focus has been set on increased production efficiencyand improved quality assurance. Our markets will continueto be tough and we can’t simply wait for better times.We are determined to constantly adapt ourselves, ourproducts and our services to changing conditions in orderto be our clients’ first choice – in good times and bad.Still strong in a tough economyConsidering the economic situation, we have turned anacceptable pre-tax profit of SEK 136.7 million. Despitea tough economy, we have delivered many successfulprojects during the past year, and we are looking aheadwith realistic optimism. It has been satisfying to see Rodoverkenwin a major contract to build Sweden’s largestLNG-tank in Lysekil and also carry out a number of largestop projects in Norway.We are also pleased to see that our companies have demonstratedan impressive flexibility and ability to adaptto changing market conditions. By focusing on marketsless affected by the economic downturn, such as thepower and energy industry as well as the mining industry,several Midroc companies have managed to grow andincrease market shares.During 2012 we continued to make significantinvestments in many of our businesses. Midroc Electrostrengthened its geographical and technical positions byacquiring Swedish property automation and electric installationscompany Browik. BAC Corrosion Control hasextended its business by acquiring the British companyRose Corrosion Services Ltd. Rose specializes in chemicalinjection and corrosion monitoring, which will improveBAC’s positions in the oil, gas and refining industries.Our property company MPD continued to invest in thedevelopment of commercial properties and housing. InPoland, the expansion of our corrosion protection companyAlucrom continued with new paint shops establishedclose to our customers.04 | Midroc Europe Annual Review 2012

Thomas Mårtensson, Christer Wikström and Roger Wikström.Together to get thereTo improve our own efficiency, much of our focus duringthe year has been directed towards perfecting internalprocesses. A new IT platform across the entire group willtake us several steps towards a fully digital workplaceand greatly improve our communication and work flow.It will help us establish the “Midroc way of working”.Furthermore, our employer branding survey revealedresults to be truly proud of – especially when it comesto leadership. Similarly, surveys show that our customersperceive us as being customer-oriented, professional andpassionate. These are valuable confirmations that workingwith our core values really does pay off.Working in an organization that always aims higher isinspiring for all of us. Looking ahead, we will put evengreater focus on efficient collaboration, both internallyand externally with our customers. We have launched avalue-based brand platform that communicates the coreexperiences of the Midroc brand. The short version of ourplatform is expressed in our brand promise “Together toget there”. When everyone is involved from the start wecan solve issues faster, thoroughly enjoy our work andcontribute to the best of our abilities. It is great to see repeatedlyhow our employees make efforts beyond what isexpected and take on every challenge. That is what makesus confident that we will continue to grow stronger andthat the best way to achieve it is by doing it together.Christer Wikström Roger Wikström Thomas MårtenssonMidroc Europe Annual Review 2012 |05

Midroc EuropeTogether TO GET THEREBest in class –independentlyand togetherWe truly believe that focusing on individual skills is not enough, it is always a matterof team efforts. The concept of ‘winning teams’, as well as a constant focus on creatingthem in all our businesses, is the basis of our success. This is what makes Midrocunique and why we are perceived as best in class.Our goal is to make our customers more competitive andto contribute to a better future through the implementationof sustainable solutions for industries and communities.Together with our customers, we increase eachother’s competitiveness. All our companies also contributeto and benefit from the strength of belonging to theMidroc group.Our success builds on our understanding of and abilityto deliver solutions for clients with many specializedneeds. We always offer each client their own individualMidroc – but much of our advantage lies in a number ofcommon strengths. In a group of 11 companies and morethan 150 profit centers across different countries andindustries, the need for cohesion is particularly evident.Best in class with winning teamsEver since Mohammed H. Al-Amoudi founded the MidrocEurope group in 1996, the strategy has been to let eachcompany develop according to its own potential, with decentralizedresponsibility. All companies do however sharea common goal – to become best in class in their respectivedomains, both in terms of profitability and of beingthe first-hand choice for clients, employees and partners.The group’s strength comes from synergies created whenthe specific skills and expertise of each Midroc companyare combined in joint projects and collaborations.“We always strive to create winning teams, with theultimate goal of becoming best in class,” says JörgenPersson, Division Manager at Midroc Electro. “To us, itcomes down to the people we work with and our abilityto organize efficiently. We interact constantly and areclear in our communication of goals and direction. Wheneveryone is involved and understands the objective, motivationis high and we all enjoy our work. Ultimately,this leads to greater efficiency, more satisfied clients andhigher profitability.”Diversity that unites and makes all the differenceThe strategy has been successful. Midroc is now a leadingplayer with operations in eight countries on threecontinents and an annual turnover of SEK 4 billion. Wehave carefully and strategically assembled the right mixof disciplines that enables us to carry out coordinatedprojects in different industries. Today, many of ourcompanies share clients. Our complementary expertiseenables us to contribute with added value to each other’sdeliveries, which gives us a unique competitive advantage.To build on our success we keep striving and investing towork together without prestige with the same language,processes and culture.“Much of our success comes from our tightly knitteams, where we benefit from our multitude of backgrounds,experiences and skills,” says Lina Knutsson, ProjectManager at Midroc Property Development. “Whilewe are different in many ways, it is always apparent thatall of Midroc’s employees and companies are part of thesame family. We are all goal-driven, passionate, and hardworking to make every project the best it can be. Beinga part of Midroc also means having access to valuablecommon resources, such as Midroc Business School. Inaddition to a great variety of training programs, it is alsoa great opportunity to develop a network of people fromdifferent companies within the group.”Client-oriented, professional and passionateSustainable solutions, increased competitiveness andimproved quality of life are the key elements of Midroc’svision. And it is our core values – client-orientation,06 | Midroc Europe Annual Review 2012

ProfessionalismClient-orientationPassionprofessionalism and passion – that will guide us alongthe way. It is the dedicated people who share this passion,commitment and responsibility that have created a commonMidroc. When everyone feels excited about going towork, we know we’re doing things right. And that’s whenwe can really make a difference for our clients.“When we established our South African branch andstarted to build the organization, we benefited greatlyfrom the experience of Midroc companies in severalother countries,” says Rick Ceronio, Managing Directorof Metalock Engineering South Africa. “I’ve had the opportunityto work for Midroc Metalock in both Germanyand the UK, and their expertise has helped us stay manysteps ahead of the competition. And having brought ourbusinesses closer together we now have an optimal setupfor knowledge sharing and cooperation. To me, that’swhat our values are all about. When we stick together,steer in the same direction and let our values guide ouractions, any obstacle is so much easier to overcome.”Midroc Europe Annual Review 2012 |07

Business AreasBUSINESS AREAContracting& ConsultingThe Contracting & Consulting business area consists of companies in the MidrocAB and Granitor Invest AB groups. Several of the companies are market leaders intheir fields and provide services to the construction and industrial sectors throughrenowned company brands. With particular focus on the industrial sector, Midrochas the ability to tailor solutions to individual client needs by combining expertisefrom within the group.Contracting services are offered to the manufacturing,processing, petrochemical and power industries, andinclude both new installations and rebuilds of plants, aswell as repairs, maintenance and renovations. Consultingservices focus on project management and administration,but also on engineering and design for both the constructionand industrial markets. Rendered services continuouslyconsider and evaluate environmental issues and newtechnical solutions. The business also includes exports ofproject management services and knowledge.The business focus is on framework agreements,private finance initiative projects and long-term maintenancecontracts. Midroc has a progressive approach withthe ambition of working in true partnership and forminglong-term relationships with clients and supply chainthrough each stage of the project life-cycle.Performance in 2012The business area has suffered significantly from the economicdownturn, affecting the European market in generaland the Swedish market in particular. Order bookingshave been good and although gross revenue has increasedcompared to last year, market competition has intensified.This has put pressure on price levels and reduced profitmargins, which is reflected in the lower result for 2012.The segment generated sales of SEK 3.5 billion andincome before appropriations and tax of SEK 124 million.Income before taxSEK Million3503002502001501005002008200920102011201208 | Midroc Europe Annual Review 2012

MIDROC ELECTRO ABEmployees: 1,500Turnover: SEK 1.7 billionOffices: 43KARL-IVAR JÖNSSONMidroc Electro is one of Sweden’s leading companiesin electrical power and automation, delivering consulting,contracting and service in a number of fields,including industrial automation & IT, installation, elevators,building systems, crane systems, mechanicalwork and security.“2012 has been characterized by financial turbulence, ashrinking market and pressure on prices,” says Karl-IvarJönsson, MD. “Despite this we have been fairly successfuland our overall results were slightly better than expected.Midroc Electro’s strength and success factor is that we areestablished in more than 40 places around Sweden, withoperations in most fields.”As part of the company’s strategy to strengthen itsposition both geographically and technically, MidrocElectro acquired Browik AB, a comprehensive consulting,contracting and service company in the fields of electricalengineering, building systems and energy solutions.Metalock’s mechanical operations in Hofors were alsotransferred to Midroc Electro during 2012.“We are proud of being able to go against conventionallogic in the industry when our commitments alsoinclude mechanical and process equipment. This gives usa unique position in our markets. Our project ability alsoallows us to deliver entire projects, from start to finish.One indication of this and our strong position in mining,is our latest gigantic order for the Freeport Grasberg Minein Indonesia (see page 10),” says Karl-Ivar.A large project beginning in 2012 was the expansionof the Garpenberg mine. Boliden is making its biggestinvestment to date to increase ore production. The projectwill continue during 2013 and involves about 600people. Midroc Electro is responsible for all electricityabove ground for the new 21 acre industrial area that willemerge.Challenges for the company in 2013 will be to adaptoperations to the current economic climate so that profitabilityis maintained and to continue developing both thecompany’s project ability and operations in service andmaintenance, building systems and security.MIDROC PROJECTMANAGEMENT ABMidroc Project Management performs both consultingand contracting work in the industrial, energy and constructionsectors. The company has comprehensiveproject teams focused on environmental issues andnew technical solutions.Employees: 140Turnover: SEK 440 millionOffices: 4STEFAN KRONMAN“In construction, our focus this year has been on marketingand on building structural capital,” says StefanKronman, MD. “In Malmö we won prestigious contractsin both contracting and consulting. For instance, togetherwith Midroc Property Development we won two contractsfrom MKB for a total of 240 rental apartments inthe Sjöjungfrun and Bohus projects.”In the industrial and energy sectors it’s been businessas usual, with focus on implementing consulting assignmentsand marketing.“On the consulting side we won a strategic order asclient’s representative in LNG (liquefied natural gas),(read more on page 16). We are also focusing on newtechnology, with competence in energy technology andelectrical power technology and we are now establishedin Stenungsund. Internally, we are implementing a newbusiness system, AX, which gives us a more stable platformfor major assignments,” says Stefan.However, the result for 2012 was not up to expectations.“For the first time in many years we unfortunatelyhave a negative result. The main reason is two contractingassignments that have performed significantly worse thanbudget due to delays in construction starts. In consulting,on the other hand, we achieved our goals and have alsogained a number of new customers,” says Stefan.During 2013 the objective will be to win strategicorders in housing construction, continue developing theLNG venture together with other companies in the groupand get full effect from the new IT tools.“One of the biggest challenges for 2013 will be toperform the Preem stop project this autumn, the biggeststop project ever. This is an extremely complex projectwith about a thousand contractors performing service andmaintenance during a whole month. Establishing ourselvesas a strategic partner in the renewable energy fieldis another important goal,” Stefan concludes.Midroc Europe Annual Review 2012 |09

Business AreasSwedish mining solutionsturn to gold in IndonesiaFreeport-McMoRan, one of the world’s leading mineral mining companies, is planningfor underground ore transport in one of the company’s Indonesian mines. At the top oftheir wish list were solid experience and a proven concept. They found both in the farnorth of Sweden, where Midroc Electro and Midroc Automation have perfected processcontrol systems for Swedish iron ore producer LKAB.The Grasberg mine on Papua, Indonesia, is located 4,100meters above sea level and is considered the world’slargest gold deposit. It has been an open pit mine fordecades, but the plan now is for operations to proceedunderground. Freeport-McMoRan contacted Midroc inearly 2012, with a request for the same concept that hadbeen developed for LKAB – a process control system fortransport of newly extracted ore to the concentrator. Theconcept is developed by Midroc together with partnerBombardier Transportation.“The contract process was rapid and ran parallel topre-study engineering. The scope also included engineering,planning, electrical installations and power supply.LKAB is at the very forefront of this type of mining andtogether with them we have developed an efficient systemwith great consideration to both safety and the environment,”says Jonas Bergmark, General Manager at MidrocAutomation.Value-adding adaptations for a different worldThe distance between Swedish Lapland and Indonesia isconsiderable – not just geographically, but also geologicallyand culturally. According to Jonas Bergmark, a numberof adaptations needed to be made to the original process.“The geological environment in Indonesia is muchmore aggressive and to prevent the equipment from eroding,everything needs to be corrosion resistant. On topof that, it rains five meters per year here and helicopter10 |Midroc Europe Annual Review 2012

transportation is only possible for a couple of hours inthe morning before the fog sets in. Then there are otherlocal circumstances such as malaria, snakes and heat. Allin all, it puts great demands on our efficiency, planning,materials and methods – and definitely requires us to stayon top of our game.”Many parts of Indonesia are largely unregulated andthe inhabitants in the mining area are used to being ableto pan for gold freely. To make sure the local communityisn’t affected negatively, Midroc sets aside two percent ofthe project’s net income for social purposes. The majorpart of it goes into educating local residents, with theultimate goal of providing them with work in the mines.And the process itself provides perhaps the greatest value,both in terms of sustainability and productivity.“Our rail-based method makes a big difference toboth environmental impact and profitability compared tothe diesel-consuming truck alternatives. With our provenconcept, Freeport-McMoRan gets world-class productivityand minimizes production losses in the transitionfrom open-pit to underground mining. The trains carrysignificantly more ore per transport, they are energy efficientand it is easy to adjust speeds, which is an importantsafety aspect,” says Jonas Bergmark.Courage, capacity and partnershipThe two Midroc companies are contracted until operationsare scheduled to start in 2016. But they havealready become an important partner to the client, andJonas Bergmark is certain that more stages and projectswill follow.“A project like this requires a large portion of businesscourage – the willingness to take on business that carriesrisks, but also opportunities for long-term high profitability.With our capacity to manage large, economicallyand socially demanding projects, and our ability to buildclose relations with our clients, we have optimal chancesof success. There are more deposits in this area, and ourstay here is projected until at least 2030.”Midroc Europe Annual Review 2012 |11

Business AreasALUCROM ABAlucrom is the largest anti-corrosion surface treatmentcontractor in Sweden and well-established in the steelcoating market. The company blasts and paints steelobjects in its own paint shops, while larger structuressuch as bridges and storage tanks are treated on-site.Employees: 230Turnover: SEK 230 millionPaint shops: 19RALPH HALLDIN2012 looked to be a fantastic year for Alucrom, Sweden’sbiggest company in corrosion protection painting andblasting, with many inquiries early on. But instead the airwent out of the market during the spring.“The first half of 2012 was well below expectations,”says Ralph Halldin, MD. “But then things got better andwe reached a positive result at the end of the year. Thegood thing about this development is that we are wellprepared for the possibility of a tough 2013. I feel confidentabout future challenges.”Alucrom made a strategic decision during the year todesign paint shops for the future, with the aim to moveto bigger units to lower operating costs, increase capacityand become more flexible.“Other areas we will focus on in 2013 will be to satisfythe requirements of our key customers and increase ourmarket share there. We will continue working with ourHSE initiative based on our OSHAS certification andwe intend to separate our different operations and focusmore on contracting. To do this as effectively as possible,we have started up Alucrom Contracting AB,” says Ralph.The Polish operations continue to expand and two bigprojects that give a 30-40% increase in volumes are in thefinal stages.“We are following our plan to have five of our ownpaint shops in 2015. A third painting station was openedin eastern Poland in May. We have also started a productiondevelopment program, in parallel in both Swedenand Poland, for our 19 permanent paint shops, with theaim to find smart solutions for production improvements.This involves issues relating to personnel and workplace,as well as how to handle goods and production moreeffectively. We have every reason to celebrate in 2013, asAlucrom celebrates 60 years as a company and 10 years inPoland,” Ralph concludes.GP Ställningar ABGP Ställningar is a scaffolding contractor providingsafe and flexible scaffolding solutions. Clients areprimarily found in the process industry and civilconstruction on the west coast of Sweden.Employees: 35Turnover: SEK 30 millionOffices: 2RALPH HALLDIN“2012 was a tough year for GP Ställningar,” says RalphHalldin, MD. “We saw construction decrease with ourcustomers getting fewer projects and with more scaffoldingcompanies competing for smaller projects. Our result is notup to expectations, but reasonable under the circumstances.”During the year the team was strengthened with anew project manager and investments were made in bothmaterials and vehicles.“The challenge for 2013 will be to create full employmentfor all our staff, to monitor our key customers,making sure we fulfil their requirements and to becomean even better supplier. Above all we will look into biddingon a number of midsize projects in the Gothenburgregion and we will continue working with buildingup a new depot in Gothenburg for future growth,”says Ralph.12 |Midroc Europe Annual Review 2012

In 2013 Alucrom ABcelebrates 60 years asa company, making it oneof the oldest companiesin surface treatment andcorrosion protection.At the same time thecompany is celebratingten years in Poland,where it established itsfirst facility in 2003.Midroc Europe Annual Review 2012| A

Rodoverken ABRodoverken is a service and contracting companyspecializing in tank erection, pipe spool fabrication andpipework erection. Through its subsidiary SIM, Rodoverkenalso offers tanks and drums in stainless steel tothe Swedish pulp and paper industry.Employees: 250Turnover: SEK 500 millionOffices: 1Magnus DahlbergDuring 2012 Rodoverken worked intensively withorganizational development, recruiting a number of keypersonnel and initiating a detailed development packagethat continues into 2013.“Our entire organization is involved, everyone is contributingto our improvement program and understandthe direction we are taking,” says Magnus Dahlberg, MD.“It’s very stimulating to see the driving force at all levelsto become best in class and to be first choice for our customers.I am proud to lead this organization and we willcontinue along the path we have chosen.”In parallel with these internal activities, Rodoverkenhas also established itself on the Norwegian market aswell as in the LNG (liquefied natural gas) sector.“We have had two very successful projects in Norway.A big turnaround project for ExxonMobil that exceeded expectationswith twice the expected turnover. We are now thecustomer’s first choice as they now hire us to do a large partof the fixed maintenance. Our commitment to the LNG sectorhas also given results. It’s a strength that we can maintaina strong position on the domestic market, while at the sametime bring in orders in new markets,” says Magnus.One of the main challenges for the company in the nearfuture is to continue with the Norwegian venture as themarket is strong there. For accumulator tanks the focuswill be on a number of countries in northern Europewhere the market for accumulator tanks for district heatingis strong.“Our unique construction method along with severalongoing European projects will have a ripple effect onthese markets. Our LNG project in Lysekil is an importantreference, giving us the opportunity to win moresimilar orders. Another challenge in 2013 will be theturnaround project for Preem, their biggest stop ever.During 6-8 weeks Rodoverken will perform a large partof the maintenance work being done at the refinery,” saysMagnus.“Our result for 2012 is reasonable, but we are not satisfiedin spite of a strong finish. Going into 2013 we havewell-filled order books in both the tank and piping areas.That, together with a cost reduction program, allows meto look forward to 2013 with confidence. At Rodoverkenwe don’t see the clouds in the sky that you read about inthe papers, we only see the opportunities,” says Magnus.Midroc Europe Annual Review 2012| 15

Business AreasStepping on the gaswith efficient andsustainable solutionsAs the search for more environmentally sustainable fuels intensifies, interest in liquefiednatural gas (LNG) has surged. Norwegian LNG producer and supplier Skangass hasgiven Rodoverken a contract to construct Sweden’s largest cryogenic tank for LNG.Midroc Project Management is at the same time given the role in Skangass’ projectdevelopment team to follow up the Engineering, procurement and installation (EPCI)contract.LNG is methane gas that has been condensed to liquidform for more volume efficient storage and transport. As asubstitute for other fossil fuels such as oil and coal, naturalgas has two attractive properties – at combustion it emitslower levels of carbon dioxide and handling is more costefficient.With such competitive edges, LNG has becomeone of the most rapidly growing energy alternatives throughoutthe world. Traded volumes have increased more than fivetimes since the 1990’s to just over 240 million tons.Benefitting from this surge in demand, Norwegian LNGproducer Skangass is investing in new facilities. In Lysekilin southwestern Sweden, Skangass is currently buildingthe country’s biggest LNG terminal to date – a cryogenictank with a capacity of 30,000 cubic meters, adjacent toend-customer Preem’s refinery.“Rodoverken have the most extensive experience oftank construction in LNG projects in the Nordic market,with references in Sweden, Norway, Spain and Germany.16 | Midroc Europe Annual Review 2012

And experience is key in these advanced constructions,particularly when taking the overall responsibility,” saysPär Hedendahl, Business Area Manager at Rodoverken.Time is of the essenceThe project started in early 2012 with full focus on detaildesign and main equipment purchasing. Rodoverken hasfinalized the work on the bottom slab. During twelvedays a 60-centimeter thick outer tank has thenbeen slip-formed in one piece. Accordingto Pär, time-efficiency is one of the mostimportant success factors.“Construction of cryogenic tanks arecomplex and time-consuming projects.One of the main reasons we got thecontract is our combination of experience,project capacity and our own,time-efficient method. Normally, theconstruction takes two years. We are ableto cut this time by up to six months. It’s anexceptionally safe method as well. All parts aremounted from the ground, without any scaffolding, andthen gradually rotated upwards. And most of the operationsare automated. For example, there is minimum ofmanual welding involved.”Cooperation for full potentialThe new terminal in Lysekil is a significant investmentfor Skangass, but one that makes perfect sense whenconsidering the positive market outlook for LNG. Forend-customer Preem, substituting oil with LNG in itsproduction processes can potentially save the company asmuch as SEK 200 million annually. The environmentalbenefits are equally impressive – the refinery will emit approximately130,000 tons less carbon dioxide each year.Key issues are in detailing and Midroc Project Managementhas played a vital part in perfecting the process inorder for the project to reach its full potential even forthe refinery.“Our close cooperation with Skangass has enabledmany improvements. At the start of the project wehad to ensure the adequacy of the technicalfeatures and at the same time coordinatePreem’s demands with the prerequisitesfor the construction. For example, whenunloading LNG from ships an increasedamount of “boil-off” gas has to be takencare of to avoid the risk of emitting hydrocarbons,which is only allowed in caseof emergency. One of our most importantcontributions has been to define the requirementsfor systems that can solve this issueboth safely and effectively,” says Joakim Ramsberg,Project Manager at Midroc Project Management.The tank in Lysekil is to be completed and operationalby 2014. That is, however, by no means the end ofMidroc’s LNG journey.“The success of these projects depends on mutualtrust, respect and ability to create effective work concepts.We have formed close relations with Skangass, as wellas with all other involved contractors. LNG is and willcontinue to be a fast growing market in Scandinavia –and we are already in discussions for future projects withvarious clients,” says Pär Hedendahl.Midroc Europe Annual Review 2012 |17

Business AreasBAC Corrosion Control Ltd andRCSL Corrosion MonitoringBased in the UK, BAC Corrosion Control is a marketleader in cathodic protection and pin brazing electricalbonding, working in the international oil, gas, power,civil and utility industries and the marine sectors.Employees: 40Turnover: SEK 61 millionOffices: 2Tony GerrardDuring 2012, BAC Corrosion Control (BAC) acquired100% of the shares in Rose Corrosion Services (RCSLCorrosion Monitoring, RCSL). RCSL specializes in internalcorrosion monitoring of closed pipeline and vessel systemsin the oil, gas and water industries with the manufacture ofpressure systems that allow the installation and removal ofcorrosion probes and weight loss coupons.“Last year we worked with integrating RCSL intoBAC systems, culminating in moving manufacturing andassembly of components to Telford and opening a salesoffice in managed facilities in Swindon, Wiltshire,” saysTony Gerrard, MD.BAC completed a large project in 2012 with the DisiWater Conveyance Project in Jordan. It is a water supplyproject designed to pump 100,000,000 cubic metres ofwater per year from the Disi aquifer in the south on theSaudi Arabian border. The water is piped to the capital,Amman. During the year BAC supplied galvanic and impressedcurrent cathodic protection materials and equipmentto the project and in addition was commissionedto undertake consultancy work including the design peerreview for the project.“The operating profit for RCSL and BAC was GBP240,185 and GBP 176,794 respectively. Both resultsexceeded our internal budgets. During 2013, marketingefforts for RCSL will be our key priority. This will benefitfrom the two companies sharing the same clients in a lotof areas,” says Tony.Midroc Environment GroupMidroc Environment Group is a leading provider of environmentalremedial services. The subsidiary Ekoteccarries out biological treatment of contaminated soil,which is Midroc’s major business activity in the environmentalsector. The company Airgrinder developstechnologies for defragmenting and drying materialsusing very little energy by means of artificial tornadoes.Employees: 18Turnover: SEK 70 millionOffices: 4Erik Bäcklund“2012 was a normal year for us, but increased competitionon the market has resulted in declining margins,”says Erik Bäcklund, MD.In 2012 Ekotec was awarded a big project that willkick off during 2013. It involves the third phase of soilremediation at a sawmill in Skellefteå in northern Swedenwhere the soil is contaminated with dioxins. The contractis worth SEK 30 million.”The challenge for 2013 will be to respond to the continuedincrease in competition from foreign companies on theSwedish market. To complete the sawmill project in the bestpossible way will of course also be important,” Erik concludes.18 |Midroc Europe Annual Review 2012

Business AreasBUSINESS AREAPropertyInvestmentsMidroc is active in property development and management through the Midroc PropertyDevelopment AB and Midroc Real Estate AB groups. The mission is to contribute to abetter future by creating sustainable urban environments and buildings where peopleand businesses can be developed. We rather say “Why not” than “Let’s wait and see.”Midroc Property Development (MPD) develops and managesboth commercial and residential properties in southernSweden and Stockholm. The project portfolio includesabout 680,000 m 2 in building rights and MPD managespremises totalling 90,000 m 2 . Our vision is to contributeto a better future by developing sustainable urban environments,residences and premises that allow people andbusinesses to thrive. The company has about 50 employeesand the head office is situated in Malmö.Midroc Real Estate (MRE) owns and manages centrallylocated commercial properties in Stockholm and Malmö.The group has a total rentable area of over 90,000 m 2 in aconcentrated property portfolio with long-term, effectivemanagement and a high level of service. The vision is tocontribute to a better future by developing the best sustainablesolutions which increase company’s effectiveness andthe quality of life.The MRE group generated sales of SEK 192 million andincome before appropriations and tax was SEK -2.1 million.Total assets amount to SEK 2,767 million. Unrealizedsurplus value in properties under management is assessedat SEK 869 million.Income before taxSEK Million40200-202009201020112012Performance in 2012The business area achieved a good result, despite the fact thatthe market is facing a declining demand for new housing.Total generated sales amounted to SEK 988 million. Totalincome before appropriations and tax was SEK 36.6 million.The MPD group generated sales of SEK 796 million andincome before appropriations and tax was SEK 38.7 million.Total assets amount to SEK 1,008 million.-40-60-80-100-120200820 | Midroc Europe Annual Review 2012

MPD has developed newtenant-owned apartmentswith large west-facingbalconies in the expansiveWestern Harbourarea in Malmö. Alongside,a new local park is beingconstructed, for the benefitof both residents andthose working in WorldTrade Center Malmö.Midroc Europe Annual Review 2012| A

Business AreasGreater focus on sustainability“During the year we implemented extensive personneltraining in ecological sustainability covering such thingsas energy, systems and materials selection,” says MagnusSkiöld. “We have also initiated development of a conceptwe call Naturally Sustainable. This includes social andeconomic aspects of sustainability and during 2013 wewill continue to develop the concept and further trainour employees. The aim is to get closer to our vision – tocontribute to a better future.”Magnus Skiöld and Peter SyrénHighlights from 2012“We did very well in 2012, which is most satisfying giventhat we are experiencing a recession,” says Magnus Skiöld,MD, MPD. “We expected a difficult year but we achieveda good result. Most of our business is in Skåne, right in themiddle of a dynamic region with great confidence in thefuture. This gives us excellent opportunities to continuedeveloping our project development business. At thesame time we have experienced declining demand for newhousing, as have our competitors. The housing market isaffected very strongly by the general economic situationand we expect things to be slow in 2013 as well.”Midroc has constructed 108 light and spacious tenantownedapartments in the expansive Western Harbourregion in Malmö, with a fine view over the ÖresundBridge. After a couple of years’ construction, a whole newneighbourhood is ready and the first families have movedinto their new homes.In April work started on the new World Trade CenterLund development area. Hotel Park Inn by Radisson with192 rooms on 10 floors will be first. World Trade Centeris based on a strong tradition of meetings between people,companies and ideas – locally and over national borders.The hotel with restaurant and conference center will playan important role in World Trade Center Lund.During the year MPD has also completed two apartmentbuildings with both rental and tenant-owned apartmentsin Helsingborg, which have been well-received in anotherwise difficult housing market.Some years ago Midroc was commissioned to transformLomma center and the first stage was completed in 2009.During 2012, construction of stages 2 and 3 began. Whenthe whole project is completed in 2014, an entirely newcenter will have been built, with about 100 apartments and6,000 m 2 of retail space. The result will be a modern, urbanbut still small-scale central district with a mixture of housingand shops that will generate more activity and commercewith a higher level of well-being and security than before.Modern office space attracts new tenantsThe demand for modern and flexible office solutions isincreasing. New demands are being made on the workingenvironment and younger employees, who have grown upin an online world, demand to be continually connectedboth to the web and to company networks. Many companiesalso want to manifest their brand in their office design,which leads to further development and customization oftheir premises.“The extensive renovations of both Tändstickspalatseton Västra Trädgårdsgatan and the Jakob Mindre buildingon Gustav Adolfs torg in Stockholm were very welltimed,” says Peter Syrén, MD of Midroc Real Estate. “Thishas given us the opportunity to gain new customers, suchas for example The Boston Consulting Group, Bizkit andProtector Insurance.”A trend in the sector is the development of office spacetailored to suit company and employee activities, knownas activity-based workplaces. This means that workplaceplanning is based on the different tasks and activities thatwill take place, instead of assuming that a large number offixed, individual workstations is required.“Many companies understand the importance ofcreating spaces for social interaction, which increases opportunitiesfor spontaneous encounters and exchanges ofexperience,” Peter Syrén says. “This means that taking thesocial consequences of design of the physical environmentinto account becomes more and more important. This is anarea of expertise we must master.”Investments for a better environment“We are continually making investments in our propertiesto decrease the burden on the environment,” Peter adds.“Above all modifications to heating, ventilation and coolingsystems. New systems that cooperate with each other andadapt themselves according to the load. Air flow, heatingand cooling are supplied only where needed, which reducesconsumption while at the same time creating a better indoorclimate. During the year we made a number of largeinvestments and are planning more for 2013. Investmentssuch as these often pay for themselves within five years.”22 | Midroc Europe Annual Review 2012

The Jakob Mindre1 building on GustavAdolfs torg in Stockholmhas recently been totallyrenovated. Midroc cannow offer new officeswith modern technologyin a building of culturaland historic interest.Midroc Europe Annual Review 2012| A

Business AreasBUSINESS AREANew TechnologiesMidroc New Technology (MNT) is the Midroc venture capital company working withnew innovative technologies. Its mission is to provide equity capital for carefullyselected high-risk business opportunities. To increase the chances of successfuldevelopment of the portfolio companies, MNT’s philosophy is to take significant andactive responsibility as owner by offering its portfolio companies assistance withmanagement, business strategies and access to excellence.MNT focuses on potentially groundbreaking technologiesand business concepts in emerging sectors. Two areas oftechnology are of particular interest to MNT - clean technologyand the life sciences, and the portfolio companieswork in fields ranging from biomedicine to alternativeenergy sources.The timing and method of returning invested capitalare important considerations for MNT as for any venturecapitalist. Exits will take place at the point in time whena portfolio company has proven itself and developedenough to allow sale to a new ownership structure thatis industrially logical and justified, meaning for instancea new phase of development,rationalizations,synergies, restructuringor expansion.“The common denominatoris the innovative,sometimes even revolutionary,nature of theventures that can contributeto making the world abetter place. MNT is oneof the few market playersGöran LinderMNT’s portfolio company Crossborder Technologieshas developed a new modular metal pallet system, incooperation with customers and partners. The newmetal pallets have clear competitive advantages whencompared to traditional wooden pallets. They areweather resistant, durable, fireproof, resistant to oilsand chemicals as well as being 100% recyclable. Theyalso have low weight and a long life cycle. During 2012Crossborder secured SEK 12.5 million in financingprior to the planned market launch of their new palletsystem in highly durable sheet metal.24 |Midroc Europe Annual Review 2012

MNT’s portfolio company Pergamum has anumber of well-developed research projectsinto peptides that can knock out resistantbacteria through local application when treatingwounds and infections. Pergamum has atpresent three therapeutic peptides that havereached clinical stage. Having several projectsso far developed in clinical trials is unique. Atthe end of 2012 Pergamum reported positivePhase II data concerning clinical trials in outerear infections. The results indicate that a peptidecan play an important role in treatmentsof infections of the outer ear.that enter development projects at a very early and thereforeat a financially risky stage,” says Göran Linder, CEO.“Often innovative companies in these areas are smallstart-ups, and MNT’s role is therefore to understand andsupport the prime movers behind these companies. Byinvesting in these companies, MNT, with its market recognition,is giving them a stamp of approval in the eyesof future investors.”After the initial years of operation, MNT can notethat several of the portfolio companies now have reacheda commercial position which makes them suitable fordivestment for further development by others. As anexample, 2012 brought the exit of the assets of the Swedishportfolio company Jensen Devices, specialized inhigh performance gas discharge tube technology. It wasdivested to electronic component manufacturer BournsInc., thus bringing the unique technology of Jensen Devicesto the global automotive market.“I am very proud that our portfolio companies repeatedlyreceive goodwill and recognition from a number ofindependent entities. It positions MNT as a seed investorwith multi-award winning investments and as a preferredpartner with an interesting portfolio,” Göran Linder continues.“This is a tough arena to operate in and not everyinvestment leads to success. But our performance scorecard puts us in the very top layer among seed investors.”Looking forward into 2013, MNT expects to continuethe divestment of portfolio companies that havereached a suitable level of stability and commercializationbut the prevailing global financial unease has clearly ledto pre-revenue funding in general becoming more difficultto find as many investors are shifting preferences andinstead investing at later stages.“Superior technologies do not automatically attract investorsor acquirers, but MNT’s active portfolio managementhas to date facilitated both fund raising and successfulexits. The MNT business model is viable, and we willcontinue to develop and explore investments in our focusareas. In essence, we look forward to 2013 with bothanticipation and excitement,” Göran Linder concludes.Midroc Europe Annual Review 2012 | 25

Legal UnitsMidroc ABMidroc AB (registration number 556366-0033) is a holdingcompany operating through three subgroups - MidrocContracting AB, Midroc Property Development AB andMidroc Support AB. In turn, they hold subsidiaries activein the fields of civil and industrial contracting, projectmanagement, engineering and property development.Midroc Support AB represents the shared functions forMidroc AB as well as for the other three parent companiesthat form Midroc Europe, namely Granitor InvestAB, Midroc Real Estate AB and Midroc New TechnologyAB. Shared functions typically cover areas such as groupmanagement and business development, informationand communication, human resources, training, IT, procurementand risk and security management.Sales and earningsAfter a longer period with financial insecurity, particularlyin Europe, the resulting downturn in the economy has nowstabilized. Within the Contracting and Consulting businessarea, with its often long lead time for executing projects, theundertaken projects in 2012 have been entered earlier andunder competitive pressure. Although the trading performanceof the group was strong with good order intake, the pricepressure has been evident, which in turn forced down profitmargins and subsequently the earnings for the business area.The business area Property Investments in Sweden hasbeen more directly affected – particularly on the home buyerside – by the slowdown in the economy with a weak marketboth for commercial properties and for homes. However,with a strong property portfolio at hand, this business area iswell prepared to respond to a coming market upturn.The group generated sales of SEK 2,383 million (2011:SEK 2,108 million), operating income of SEK 76.3 million(2011: SEK 92.9 million) and income before appropriationsand tax of SEK 59.4 million (2011: SEK 78.5 million).Balance sheetThe group presents a strong year-end financial position witha robust balance sheet and continued strong cash generation.The balance sheet total at the end of the fiscal period haschanged from last year, from SEK 2,192 million in 2011 toSEK 1,950 million in 2012, mainly as a reflection of changesin net investments in property development undertakings.The solidity, defined as equity plus financing by shareholdersdivided by the balance sheet total as per 2012-12-31, was64% (2011: 50%). Property and land within the PropertyDevelopment segment are considered current assets.Parent companyThe Midroc AB company generated sales of SEK 0 (2011:SEK 0) and an income before appropriations and tax ofSEK 0 (2011: SEK 0).PersonnelThe Midroc AB Group employed an average of 1,200 peopleduring 2012, 500 of whom were employed by subsidiariesin Germany, the UK, France, Poland, India, Saudi Arabiaand South Africa and the remainder by the group’s Swedishcompanies.Income before taxSEK Million10080604020082009201020112012Corporate structureMidroc Contracting ABAlucrom ABGP Ställningar ABRodoverken ABMidroc METAlock ABBAC Corrosion Control lTdMidroc Project Management ABMidroc Property Development ABMidroc Projects ABMidroc Business Center ABMidroc Land Development ABMidroc Support AB20026 | Midroc Europe Annual Review 2012

Year-end statement 2012CONSOLIDATED INCOME STATEMENTSEK (Million) 2012 2011Net Sales 2,384 2,108Cost of goods sold -1,969 -1,715Administrative expenses -356 -302Other operating income and expenses 17 2Operating Income 76 93Financial items-17 -14Income before appropriations and taxes 59 79Taxes-12 -29CONSOLIDATED STATEMENT OF CASH FLOWSEK (Million) 2012 2011Cash flow from operating activities excl.working capital96 109Changes in inventories 312 -175Changes in working capital -42 18Cash flow from operating activities 366 -48Net from investments and sales-91 -62External financing -402 175Owner financing 96 61Cash flow for the year -31 126Minority share 0 0Net income 47 50CONSOLIDATED BALANCE SHEETAssetsSEK (Million) 2012-12-31 2011-12-31FIXED ASSETSIntangible assets 14 13Tangible assets 339 318Financial assets 62 45Total fixed assets 415 376CURRENT ASSETSInventories 114 41Property for resale 681 1,067Accounts receivable, etc 568 502Liquid assets 173 206Total current assets 1,536 1,816TOTAL ASSETS 1,951 2,192CONSOLIDATED BALANCE SHEETEquity and liabilitiesSEK (Million) 2012-12-31 2011-12-31EQUITYRestricted equity 392 392Retained earnings 638 596Net income 47 50Minority interest 4 2Total equity 1,081 1,040LIABILITIESShareholder's loan, interest bearing 161 65Long-term liabilites, interest bearing 198 401Long-term liabilites, non-interest bearing 10 15Current liabilities, interest bearing 5 207Current liabilities, non-interest bearing 496 464Total liabilities 870 1,152TOTAL EQUITY AND LIABILITIES 1,951 2,192Midroc Europe Annual Review 2012| 27

Legal UnitsGranitor Invest ABGranitor Invest AB (registration number 556615- 2491)is the parent company of Midroc Invest AB (registrationnumber 555620-6768) and WP International AB(registration number 556355-2628). The main activitiesunder Granitor Invest AB are contracting services carriedout by Midroc Electro AB and the Midroc Environmentgroup, both subsidiaries of Midroc Invest AB. WPInternational undertakes minor business operations.Sales and earningsIn total, the group can look back on a strong full year performancewith margin progression in a challenging market.The group generated sales of SEK 1,808 million (2011: SEK1,601 million) and income before appropriations and tax ofSEK 79.4 million (2011: SEK 104 million).After a longer period with financial insecurity, particularlyin Europe, the resulting downturn in the economy hasnow stabilized. Within the Contracting and Consulting businessarea, with its often long lead time for executing projects,the undertaken projects in 2012 have been entered earlierand under competitive pressure. Although the trading performanceof the group was strong with good order intake, theprice pressure has been evident, which in turn forced downprofit margins and subsequently the earnings for the group.The year 2012 brought a major automation design andinstallation contract to Midroc Electro, awarded by an internationalclient in the mining business. The contract will be executedduring the period 2013-2016. Furthermore, 2012 became ayear of many contracts in the small and medium size range.The Midroc Environment group provides soil remediationservices through its subsidiary Ekotec. During the year, thenumber of large scale soil cleaning contracts has been fewand instead the company has undertaken small and mediumsized soil remediation contracts on the Swedish market.Balance sheetThe group presents a strong year-end financial position witha robust balance sheet. The balance sheet total at the end ofthe fiscal period increased from SEK 822 million in 2011to SEK 963 million in 2012. This increase is to some extentexplained by continued property investments made in theMalmö Expo Center but mainly as a reflection of normalbusiness operations among the subsidiaries during the year.The group’s solidity, defined as equity plus financing byshareholders divided by the balance sheet total as per 2012-12-31, was 45% (2011: 49%).Parent companyThe parent company Granitor Invest AB generated sales ofSEK 0 (2011: SEK 0) and an income before appropriationsand tax of SEK 50.1 million (SEK 70.3 million). Companiesin the group contributed to the profit, before appropriationsand tax, with dividends of SEK 54 million.PersonnelThe Midroc Invest group employed an average of 1,600individuals during 2012, all of whom were employed bysubsidiaries in Sweden.Income before taxSEK Million1502008Corporate structureMidroc Invest ABMIdroc electro ABMIdroc environment AB12020092011WP International AB90201260201030028 | Midroc Europe Annual Review 2012

Year-end statement 2012CONSOLIDATED INCOME STATEMENTSEK (Million) 2012 2011Net sales 1,808 1,602Cost of goods sold -1,636 -1,418Administrative expenses -84 -78Other operating income and expenses 0 -1Operating income 88 105Financial items-9 -1Income before appropriations and taxes 79 104Taxes-25 -29CONSOLIDATED STATEMENT OF CASH FLOWSEK (Million) 2012 2011Cash flow from operating activities excl.working capital74 80Changes in inventories 0 -2Changes in working capital 52 -11Cash flow from operating activities 126 67Net from investments and sales-175 -168External financing 28 106Owner financing -30 -20Cash flow for the year -51 -15Minority share 0 0Net income 54 75CONSOLIDATED BALANCE SHEETAssetsSEK (Million) 2012-12-31 2011-12-31FIXED ASSETSIntangible assets 62 36Tangible assets 254 165Financial assets 46 14Total fixed assets 362 215CURRENT ASSETSInventories 7 6Accounts receivable, etc 438 394Liquid assets 156 207Total current assets 601 607TOTAL ASSETS 963 822CONSOLIDATED BALANCE SHEETEquity and liabilitiesSEK (Million) 2012-12-31 2011-12-31EQUITYRestricted equity 0 0Retained earnings 299 253Net income 54 75Minority interest 6 6Total equity 359 334LIABILITIESShareholder's loan, interest bearing 71 71Long-term liabilites, interest bearing 154 123Long-term liabilites, non-interest bearing 13 6Current liabilities, non-interest bearing 366 288Total liabilities 604 488TOTAL EQUITY AND LIABILITIES 963 822Midroc Europe Annual Review 2012 | 29

Legal UnitsMidroc Real Estate ABMidroc Real Estate AB, (registration number 556622-8580) owns the subgroup Midroc Properties StockholmAB, which manages the Stockholm portfolio andMidroc Property Öresund AB which is responsible forthe Malmö portfolio.Sales and earningsThe Midroc Real Estate’s properties in Stockholm generallypresent a very high occupancy rate and all commercial retailpremises are occupied. During 2011, adaptations and reconstructionswere completed in two of the group’s prominentproperties in Stockholm. Efforts in finding new tenants havebeen in progress since then and although several lease contractshave been signed, these properties still do not presentfull occupancy.The lease level for commercial areas in the Malmö arearemains stable. The Västra Hamnen area in Malmö, wheremost of the Midroc properties are situated, is remainingattractive to the market. Because of its modern and newlyproduced premises, it has now practically become the firstchoice among tenants looking for small and medium sizedoffices in the Malmö area. Two of the Malmö office buildingsform part of the international World Trade Center concept,where business and trade organizations are offered tailoredoffice solutions with a gateway to international trade opportunities,collaboration and education.The group generated sales of SEK 192 million (2011: SEK193 million) and income before appropriations and tax ofSEK -2.1 million (2011: SEK 2.9 million).During the year, the property Malmö Sjömannen wasacquired via a company acquisition.Balance sheetDuring the fiscal period, the balance sheet total decreasedslightly from SEK 2,799 million in 2011 to SEK 2,767million in 2012. The group’s properties are valued at a yearlyinterval. Based on the latest completed assessments, surplusvalue amounts to SEK 869 million. Considering this surplusvalue, the group presents a robust balance sheet. Successfulrefinancing during the year has secured finances.Parent companyThe parent company Midroc Real Estate AB generated salesof SEK 2.2 million (2011: SEK 2.2 million) and a resultbefore appropriations and tax of SEK -46.8 million (2011:SEK -49.5 million).PersonnelFor the management of the properties, the group relies onresources from the sister company Midroc Property DevelopmentAB, while the group’s other operations are handledby a permanent staff of 17.Income before taxSEK Million3025202009Corporate structureMidroc Properties Stockholm ABMidroc Property Öresund ABOthers151050200820102011-5201230 | Midroc Europe Annual Review 2012

Year-end statement 2012CONSOLIDATED INCOME STATEMENTSEK (Million) 2012 2011Net sales 192 193Other operating income and expenses 54 79Property expenses -115 -133Administrative expenses -37 -33Operating income 94 106Financial items-96 -103Income before appropriations and taxes -2 3Taxes-3 20CONSOLIDATED STATEMENT OF CASH FLOWSEK (Million) 2012 2011Cash flow from operating activities excl.working capital-5 -25Changes in working capital -28 -31Cash flow from operating activities -33 -56Net from investments and sales-78 144External financing -69 -4Owner financing -60 -200Cash flow for the year -240 -116Net income -5 23CONSOLIDATED BALANCE SHEETAssetsSEK (Million) 2012-12-31 2011-12-31FIXED ASSETSTangible assets 2,567 2,364Financial assets 20 23Total fixed assets 2,587 2,387CURRENT ASSETSAccounts receivable, etc 39 32Short term investments 10 -Liquid assets 131 380Total current assets 180 412TOTAL ASSETS 2,767 2,799CONSOLIDATED BALANCE SHEETEquity and liabilitiesSEK (Million) 2012-12-31 2011-12-31EQUITYShare capital 10 10Restricted reserves 30 32Non-restricted reserves 429 404Net income -5 23Total equity 464 469LIABILITIESShareholder's loan, interest bearing 490 550Long-term liabilites, interest bearing 1,661 1,543Long-term liabilites, non-interest bearing 53 104Current liabilities, interest bearing 19 26Current liabilities, non-interest bearing 80 107Total liabilities 2,303 2,330TOTAL EQUITY AND LIABILITIES 2,767 2,799Midroc Europe Annual Review 2012 | 31

OwnershipOwnershipMohammed H. Al-Amoudi is the mainowner of the legal entities comprising MidrocEurope. He owns 100% of the shares inMidroc AB, Midroc Real Estate AB, MidrocNew Technology and 50% of the shares inGranitor Invest AB, the remainder being heldby the Wikström family.Al-Amoudi is an international investor with an Ethiopian/Saudi Arabian background. As one of the largest foreigninvestors in Sweden, he has been honored twice with theSwedish Royal Order of the Polar Star in recognition of hisinvestments in Swedish trade and industry.Midroc Europe is part of Mohammed H. Al-Amoudi’sglobal business operations, which employ more than 70,000people of various nationalities in the Middle East, Europeand Africa, and cover a wide spectrum of activities, includingengineering and construction, petroleum, mining, manufacturing,tourism, real estate, industrial services and trade.Petroleum operationsActivities include upstream exploration, development andproduction in numerous countries. In addition to his interestsin Midroc Europe, Al-Amoudi owns Preem AB, thelargest oil company in Sweden. Its two refineries account for80% of the country’s oil-refining capacity and have a significantfocus on producing effective, environmentally adaptedoil products. The distribution network comprises almost 600filling stations for private and commercial vehicles throughoutSweden.In addition to the Swedish oil operations, the Moroccansubsidiaries own a majority stake and operate 100% of thecountry’s refining capacity. On the distribution side, thegroup operates filling stations throughout Sweden, Lebanon,Ethiopia and Saudi Arabia.Middle East operationsThe group operates in several countries in the Middle East,with the emphasis on Saudi Arabia. Its investments spannumerous sectors, including engineering and construction,manufacturing, trade, consumer commodities, services,transport and real estate. Midroc has been involved in complexprojects such as the underground hydrocarbon storageproject in Saudi Arabia. Other engineering and constructionprojects include hospitals, manufacturing plants, offices andresidential complexes.African operationsThe number of Al-Amoudi undertakings and investmentsin Africa is growing and projects are in various stages ofdevelopment. Midroc has selected Ethiopia as its base on thecontinent and is involved in several economic sectors withthe ambition of contributing to the social and economicdevelopment of the country. Al-Amoudi is considered tobe the single largest investor in Ethiopia, where he is alsoengaged in extensive philanthropic activities. The main areasof business investment include mining, agriculture, agroindustry, construction, light and heavy industry, tourism andreal estate. The largest cement plant in Ethiopia, located 75km from Addis Abeba, was inaugurated in 2012 by the latePrime Minister Meles Zenawi. It has the capacity to produce2.5 million tons of cement annually.32 |Midroc Europe Annual Review 2012

Board of DirectorsBoard of DirectorsRoger WikströmActive director of the boards of mostcompanies within Midroc Europe.Working chairman in several of thecompanies. Responsible for short- andlong-term group development, financingand strategy. Member of GroupManagement and the Executive Committeeof Midroc Europe.Waddah Al-AlemDr. Al-Alem has held the position ofdeputy director general at the Midroc internationalholding company since 1998.Christer WikströmActive director of the boards of mostcompanies within Midroc Europe.Working chairman in several of thecompanies. Responsible for short- andlong-term group development, financingand strategy. Member of GroupManagement and the Executive Committeeof Midroc Europe.Thomas MårtenssonActive director of the boards of mostcompanies within Midroc Europe.Working chairman in several of thecompanies. Responsible for short- andlong-term group development, financingand strategy. Member of GroupManagement and the Executive Committeeof Midroc Europe.Abdullah Al-AmoudiBased in Jeddah, Saudi Arabia, anddirector general of the Midroc internationalholding company since 1998,Al-Amoudi is responsible for the globalstrategies of Midroc.Board CompositionsMidroc ABMembersGranitor Invest ABMembersMidroc Real Estate ABMembersAbdullah Al-Amoudi, chairmanThomas MåRTENSSON, MDWaddah Al-AlemChrister WikströmRoger WikströmRoger Wikström, chairmanChrister Wikström, MDWaddah Al-Alem, special adviserThomas MåRTENSSON, special adviserAbdullah Al-AmoudiMohammed Al-AmoudiAbdullah Al-Amoudi, chairmanRoger Wikström, MDWaddah Al-AlemThomas MåRTENSSONChrister WikströmMidroc Europe Annual Review 2012| 33

www.midroc.se info@midroc.se +46 (0)10 470 70 00P.O. Box 3002, SE-169 03 Solna, Sweden Visitors: Telegrafgatan 6, Solna, Sweden