Midroc Europe

Executive Committee CommentsAdapting to the new market situationThe Swedish economy took a real battering duringautumn, 2008. We had been expecting a recessionafter several years of a booming economy. What wehadn’t foreseen however, was the speed and magnitudeof the downturn in the Swedish property marketdue to the financial crisis. In the course of a fewweeks, the business cycle-sensitive property marketexperienced a dramatic downturn. Our own companyin this sector, Midroc Property Development,immediately felt the change in the economic climatewhen the sales of ownership rights in tenant-ownerapartments plummeted in September. The housingmarket and sales of properties have therefore beenthe main victims of the drastic downturn this year.The global financial crisis, the full impact of whichwas felt in the latter half of 2008, has affected theGroup both directly and indirectly. Even thoughthe order backlog within the Contracting and Consultingbusiness area is very good and the companieswithin the Group ended the year on a strongnote, all are aware of the changed market situation.In 2009, all Group companies will face the prospectof lower profit margins and tougher competition.Midroc Europe Group companies are howeverwell equipped and prepared for the challengesthat lie ahead.adapt to the new market situation. We are wholeheartedlystriving to retain the successful positionthat we have attained in the past years, in which wecan take pride in having very qualified and motivatedco-workers and leaders.“The goal is to adapt to the new marketsituation while maintaining profitability.”We are also continuously focusing on CorporateSocial Responsibility (CSR). We see it as our keyresponsibility to develop and maintain an economicallysound and prosperous business. These includeour responsibilities toward our employees as wellas the environment and the communities in whichwe operate.ResultIn general, the companies within the Contracting& Consulting segment reported their best resultever despite the business recession that started atthe end of 2008.Overall income before taxes in 2008 was SEK 189million and the corresponding turnover of theGroup was SEK 3.9 billion. In total our Group employedmore than 2,700 people.To maintain reasonable profitability also during aneconomic slowdown, the goal within Midroc is toMidroc Europe - Income before tax and after adjustmentsfor extraordinary financial itemsSegment turnover (total SEK 3.9 billion)SEK550500450400350300250200150100500Million2004 2005 2006 2007 2008Contracting & ConsultingProperty Investments2MIDROC EUROPE

Projects of all sizesAs in previous years, Midroc was involved in a largenumber of projects and operations in 2008, includingmany smaller day-to-day assignments but alsoa number of high-profile contracts. Our strengthswithin Contracting & Consulting operations are thelarge number of projects of all sizes and the longtermmaintenance and service contracts we haveachieved, combined with our local presence.Focusing on Human ResourcesRegardless of the market situation, Midroc hasdecided to focus on the development of extensiveleadership and co-workmanship programmes. Weare proud of having started the Midroc BusinessSchool and also of the positive response we receivedfrom employees attending the programmes.“Midroc’s shared values and common culturemake us more competitive.”Midroc Business School is our tool to strengthenour common culture within the Group, which inturn will make us even more competitive in the future.Simply put, we want to make Midroc the mostinteresting workplace within the industry.Excellent employee effortsThe excellent performance of Midroc Europe during2008 reflects our employees’ efforts and ongoingdedication. The recruitment, developmentand retention of our employees are prioritizedtasks both for Group Management and the companies’local business units. We strive for diversityand more equitable gender distribution at all levelswithin the organization. Group profitability emanatesfrom hundreds of different projects whosesuccess is dependent on the performances of ourco-workers.MIDROC EUROPE 3

Midroc EuropeMarketing ConceptMidroc Europe is a development group with amarketing concept that brings together the European-basedMidroc companies. Financial strengthcombined with highly competent human resources,shared values and culture form the base for MidrocEurope. Whilst the bulk of operational activitiesare in Sweden, business expansion into Europe isprogressing with the establishment of branches andbusiness operations in France, Germany, Poland,the UK and South Africa.“Our relationships arecharacterized by collaboration,trust and long-term relations.”The European business operations are groupedinto three major Business Areas that are subdividedinto the field of expertise to which the subsidiary isrelated. Group companies operate in the followingbusiness segments:• Contracting & Consulting• Property Investments• New TechnologiesEach Midroc Europe company pursues a dynamiccustomer-oriented approach to the provision ofservices, either as an individual Midroc subsidiaryor in co-operation with sister subsidiaries ona case-by-case basis. Our objective is to establishintegrated, one-to-one relationships with our clients,characterized by collaboration, trust and longtermrelations.Legal StructureThe business development activities are conductedthrough a number of subsidiaries and legal groups,each providing their specialized service within thefields of contracting, consulting, development ormanagerial services. The ‘Midroc Europe’ conceptcomprises three main legal groups:• Midroc AB• Granitor Invest AB• Midroc Real Estate ABThese groups constitute the core of our turnover,each consisting of subsidiaries active in our majorbusiness areas of operations. Moreover, Midroc Europeincorporates the business activities of MidrocNew Technology AB, a company focused on ourinvestments in clean tech and biomedicine.MIDROC EUROPEContracting & ConsultingPainting and coatingAlucrom ABMechanicalGP Ställningar ABRodoverken ABBAC Corrosion Control LtdMetalock Engineering ABElectricalMidroc Electro ABRemediation and cleaningMidroc Environment ABConstruction managementMidroc Project CM ABProject managementMidroc Project Management ABMidroc Engineering ABABV Rock Group ABMidroc Management ABProperty INVESTMENTSProperty developmentMidroc Property Development ABProperty managementMidroc Real Estate ABNEW TECHNOLOGIESNew technologiesMidroc New Technology AB4MIDROC EUROPE

Global OutlookMidroc Europe is part of the Midroc Global Group,owned by Mohammed H. Al-Amoudi, that undertakesbusiness operations across the globe. TheGroup’s combined resources embrace a widespectrum of business areas including consulting,engineering, construction, manufacturing, plantoperation and maintenance, petroleum, tourism,transport, agro-industry, mining, communications,trade and business investments.“We will continue to adhere to ourbasic principles of integrity,quality and financial prudence.”Operations have a global reach spanning severalcontinents with some 24,000 employees of variousnationalities engaged in Midroc Global Group activitieswhose consolidated annual turnover exceedUSD 15 billion.Midroc Middle EastIn the Kingdom of Saudi Arabia, full engineeringand construction solutions are offered for largescaleprojects. In the industrial sector, the Groupowns and operates factories producing a variety ofproducts. The Group is also involved in the servicesector and trade activities of properties and variousconsumer commodities.Midroc EthiopiaOperations in Africa are based in Ethiopia whereMidroc Ethiopia has been vigorously involved inseveral economic sectors with the ambition of contributingto the social and economic development ofthe country. The main areas of investment includeagriculture, agro industry, construction, mining,light and heavy industry, tourism and real estate.Petroleum OperationsThe Group’s petroleum operations are extensive.Preem Petroleum is a significant actor on the marketconducting extensive trading and refining ofcrude oil. Preem operates two refineries in Swedenwhich are among the most modern in Europe. TheGroup’s Moroccan subsidiaries own the majorityof the country’s petroleum refining capacity. PetroSwede undertakes exploration and production of oiland gas.MIDROC EUROPE 5

Values & Business CultureAt Midroc Europe, we work actively to inspire andimprove our staff. We are proud of the culture whichholds the Group together, and which enables us towork more effectively with fundamental objectivessuch as customer satisfaction and profitable growth.The work of forming shared values and a corporateculture has been prioritized for several differentreasons. It strengthens our brand and gives it acredible content. It clearly directs the focus on ourexpertise. Our culture makes us an exciting and attractiveemployer. And we know that it providesus with a competitive advantage in the form of theskilled services we can offer.The values which underpin our culture are:• Business professionalism focusing onthe deal and the customer• Co-workmanship, which involvesresponsibility and participation• Simplicity and Transparency, the way in whichwe create confidence through a professionalapproach and a transparent attitudeMidroc Business SchoolWith sound communication between the managementand the employees, as well as within thework group itself, we can work more effectivelyand provide our customers with added value. Thisis why we started the Midroc Business School,where we organise the work on leadership programmesand group development.Communication toolsThe training programmes are aimed at providingparticipants with practical tools which facilitateand improve communication in various workrelatedsituations.The management programmes focus on manegerialunderstanding of staff and group development.Sensitivity to views and ideas, active listening andconstructive communication are all addressed inthe programme. A Midroc manager should not givehis or her co-workers the answer to every question.The task is rather to develop co-workers so thatthey can find their own solutions.Aimed at increasing efficiency in managementgroups and project teams, group development gives6MIDROC EUROPE

individual members a greater inclination to listento others, thereby instilling a realisation of the factthat effective co-operation does not necessarilymean that everyone has to have the same viewpoint.Transparency and the ability not only to contributeinput, but also to accept feedback creates a more effectivework climate.Great commitmentThe leadership programme is aimed at improvingthe level of business professionalism throughoutour operations. The sessions deal with self-awarenessand the ability of the participants to perceive“Midroc Business School provides us withtools facilitating communication.”their own individual roles within the organisation,group dynamics and issues such as conflict managementand constructive feedback. Skills that are essentialto manage effective work teams.VIEWS about Midroc Business SchoolCatrin Rochhausen was appointed HR Manager atMetalock Sweden AB in 2008. One of her first taskswas to generate interest in the leadership improvementcourse.“We started with managers with overall responsibilityin the organisation, to ensure a common applicationof our fundamental values. We invest heavily inleadership improvement. We expect a great deal ofour managers and must provide them with the toolsthey need”.”This is an issue that is discussed extensively withinthe management team. Ultimately, it’s about trimmingthe organisation and preparing ourselves forthe challenges we’re faced within the market. Weimprove our competitiveness through skilled leadershipand through work groups which communicateeffectively, both within the company and whendealing with clients.”Valuable investmentMagnus Dahlberg, CEO of Rodoverken, applied anidea drawn from previous experiences and placedgroups on the group development course.MIDROC EUROPE 7

“Midroc Business School has adopted a professionalapproach which has helped bring us closer togetherand improved our understanding of both our ownstrengths and weaknesses, and those of others”.”In the company, we are all involved in projectswhich require excellent team work. Now we share acommon view of how to achieve great results throughwhole-hearted cooperation within the project group.This makes us more effective and allows us to achievethe targets we set for our operations.”“We share a common view of howto achieve great results.””Offering personal development also makes us amore attractive employer, something which paysdividends when we try to improve the company’sexpertise.”“I am looking forward to improving the performanceof both myself and my colleagues. It will ensurethat we can move ahead with a professional attitudebased on self-awareness and understandingof clients”, concludes Magnus Dahlberg.Improved leadershipJahn Olovsson is site manager at Midroc Automationin Gävle, a division of Midroc Electro AB.”I was a bit uncertain of what to expect”, says Jahn.”But I was in for a pleasant surprise and can certainlysay that it is the best management and leadershipcourse I’ve ever attended.””We were given tools which are directly applicableto the leadership role, with many features whichimprove contacts at all levels. It’s about how youperceive your colleagues and how to work out thebest approach in tackling different situations.””The course provided us with a valuable understanding,as well as methods which will make communicationwith colleagues and clients easier”, saysJahn Olovsson.8MIDROC EUROPE

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Contracting & ConsultingSeveral of our companies in the business area Contracting& Consulting are market leaders withintheir business fields and provide services to thebuilding and industrial sectors through well-establishedcompany brands. What distinguishes us fromour competitors is our ability to tailor solutions tomeet individual client needs by combining expertisefrom within our group.Contracting services are directed towards the manufacturing,processing and petrochemical industriesand embrace new installations, rebuilds as well asmaintenance and renovations. Consulting servicesfocus on project management and administrationas well as engineering and design for both the civilconstruction and industrial markets.Result for the Contracting &Consulting SegmentOur Contracting and Consulting companies belongto the legal groups Midroc AB and Granitor InvestAB. The turnover of the Contracting & Consultingsegment was SEK 3.6 billion with an income ofSEK 306 million before appropriations and tax.Although the last quarter of 2008 brought the globaleconomy almost to a halt, the segment has againimproved its business performance and recorded itsmost successful business year ever.Contracting & Colsuting - Segment Income before taxSEK30025020015010050MillionMidroc Electro ABMidroc Electro is the single largest company withinMidroc Europe. Headquartered in Sandvikenand represented at 35 other locations in Sweden,Midroc Electro primarily offers installation workand related services within the fields of electricalpower, security, data and telecommunications.The company also provides advanced services inthe field of integrated automation, an engineeringdiscipline that connects processes and productionin advanced control and follow-up systems. 2008has been the most successful year in the company’shistory. Midroc Electro completed a contract forLKAB comprising process control design andelectrical installations for a new concentrating andpelletizing plant in Kiruna. Midroc Electro has deliveredseveral complete industrial crane solutions,and was also awarded the contract for electrical andtelecommunication installations at Göteborg’s newfootball stadium.Midroc Project Management ABMidroc Project Management is a consulting andcontracting company, developing and executingprojects for the civil construction sector and industry,both in Sweden and internationally. MPMtypically offers the project management servicesand expertise necessary for analysis and feasibilitystudies, estimates, project planning and control,engineering, construction and procurement. In2008, the company successfully provided constructionmanagement for an in-flight kitchen at AddisAbaba airport, involving local resources as well asSwedish expertise.Midroc Project CM ABMidroc Project CM develops and executes constructionprojects for Swedish and internationalindustry as well as for the private and public sector.The company applies effective managementtechniques in the planning, design and constructionwork. The purpose is to fully control project execution– from conception to completion – in orderto optimize time, cost, function and quality. During2008, Midroc Project CM was involved in severalconstruction projects, such as conference facilitiesand residential buildings outside Stockholm.02004 2005 2006 2007 200810MIDROC EUROPE

Exporting project management competence, Midroc completedan in-flight kitchen complex at Addis Ababa Airport.For closed-down petrol stations, Ekotec has remediated the surrounding soilat numerous locations in Sweden.Midroc Automation assumed total responsibility for the process control of LKAB’s new plant facility in Kiruna.MIDROC EUROPE 11

stations through a number of large contracts in2008. Metalock in Sweden undertook several industrialmaintenance projects at different locations inSweden and in many different areas, ranging frommanufacturing companies to opera houses andcruise ships. In April, a subsidiary in South Africawas acquisitioned.BAC Corrosion Control LtdBAC Corrosion Control is based in the UK andis a market leader in cathodic protection corrosioncontrol and pin brazing electrical bonding, workingwithin the oil, gas and utility industries. BACCorrosion Control continues to work worldwidewith contracts in countries as widespread as Russia(Sakhalin Island) and China to Brazil and Angolain the offshore oil market. In the maritime market,BAC continued to carry out routine maintenance ofaluminium-hull fast ferries around the world.Rodoverken ABRodoverken is a successful service and contractingcompany specializing in the design and constructionof customized industrial plants. Operationsconsist of tank erection, pipe spool fabrication andpipe erection, primarily for clients in the Nordic region.The company works with carbon steel materialsas well as construction of stainless steel tanks.Rodoverken has recently undertaken several majortank constructions using their unique spiral technique,assembling the tank from a fixed position onthe ground.surface treated wind power towers correspondingto an area of 300,000 m 2 . Other treatment workcarried out by the company included stationarystorage tanks for liquid gas and refined oil. Completionof a new facility is underway in Poland.Midroc Environment GroupMidroc Environment Group is a leading providerof environmental remedial services. The subsidiaryEkoTec AB carries out biological treatmentof contaminated soil, which is Midroc’s majorbusiness activity within the environmental sector.Airgrinder AB develops techniques for materialdefragmentation and drying. During the year,EkoTec was commissioned to decontaminate rockcaverns used for oil storage on the island of Kvarnholmenin central Stockholm. The total volume is375,000 m 3 , the equivalent size of a supertanker.EkoTec has also decontaminated several petrol stationsfor a variety of petrol companies operatingon the Swedish market.GP Ställningar ABGP Ställningar is a scaffolding contractor providingsafe and flexible scaffolding solutions. Clients areprimarily found in the process industry and constructionprojects on the west coast of Sweden. In2008, GP Ställningar finalized a large scaffolding assignmentat the Uddevalla hospital.Alucrom ABAlucrom is the largest anti-corrosion contractorin Sweden and well established in the steel coatingmarket. The company is busy blasting and paintingmovable steel objects in thirteen permanent paintshops, twelve of which are located in Sweden andone in Poland. Larger, sometimes spectacular objects– such as bridges, storage tanks and large steelstructures – are treated on site. In 2008, AlucromMIDROC EUROPE 13

On-Site, On-Time and On the JobThe complexity of today’s production plants andprocessing facilities is such that the failure of a singlecomponent can, in a worst case scenario, result inplant closure. Dismantling and transporting substantialmachine parts for off-site repair can be hazardousand devastating in terms of downtime and cost.With an unrivalled range of on-site machining services,Metalock claims that any component repair ormachining that can be carried out in a workshop,can be done equally well on site by their ‘FlyingWorkshop’ service facility. Comprised of highlyspecialized machining personnel and equipment,the facility is geared to go at any time, anywhere inthe world and resolve problems on-site and workround the clock in multiple shifts for as long as ittakes to complete the assignment.“On-site machining services minimizesproduction downtime.”As Fritz-Peter Ecken, CEO of Metalock IndustrieService GmbH explains, the Division’s Germansubsidiary was awarded a major contract to milland bore two pre-stands on-site at a heavy platerolling mill in Italy. “This job entailed the use ofour 4-metre CNC machining towers to mill windowsurfaces with extremely small tolerances,” saysEcken. “Although these tolerances are a standardrequirement today, it was a tough challenge requiringskilled expertise when we began this type ofwork twenty-odd years ago. We’ve executed manycomparable jobs since and are well acquainted withthis type of assignment. The time frame was tight,but as we had previously undertaken several similarjobs for the same customer, they had strong faith inour ability to get the job done on time”.By utilizing Metalock’s on-site machining servicesthere is no need for customers to maintain highlyspecialized competencies and resources in-house. Italso reduces production downtime resulting frombreakdowns or maintenance. With companies inGermany, France, the UK, Sweden and South Africa,Metalock’s Flying Workshop teams undertake numerousmachining assignments worldwide annually.Fine tolerances are achieved with Metalock’s CNC milling towers.MIDROC EUROPE 15

Property InvestmentsInvestment in and development of propertiesforms a significant part of the business operationsof Midroc Europe. Our operations within PropertyInvestments are undertaken by a dedicated subgroup,Midroc Property Development AB (MPD).Curiosity, speed, knowledge of the market and anunderstanding of customer needs combined withour strong engineering and design background areimportant factors in successfully developing andmanaging property investments.Result for the Property Investments SegmentThe negative effects of the financial turmoil inthe latter part of 2008 were first experienced bythe property sector. For MPD, with several propertydevelopment projects ongoing in the south ofSweden, business has stagnated and budgeted sales/divestments due for the year were not realized. Thetotal turnover of the Property Investment segmentwas SEK 500 million with an income of SEK -89million before appropriations and tax.Ranging from land acquisition to refinementand divestment to final takerBeing part of Property Investment, Midroc’s propertydevelopment can include the full range of activities,ranging from acquisition of raw land orexisting buildings to refinement and divestment tofinal taker. These projects often span several years.Property Investments also includes the traditionalconcept of property management for Midrocownedproperties. In order to bring out the bestin both business areas, we have divided the businessinto two segments: Property Development andProperty Management.Property DevelopmentCharacterized by a wide approach to developmentand practical business operations, MPD has rapidlybecome a prominent property developer providinginnovative real estate concepts to external investors.Naturally, the divestment of developed propertyis not a regular activity, which has a significantimpact on the annual income profile as can be seenin the graph.“MPD has rapidly become a prominentproperty developer providinginnovative concepts”MPD projects range from housing, tenant-ownedresidences, offices and commercial real estate toproperties for specialized use. The geographicalcentre of the operations lies in southern Sweden. In2008, MPD completed the construction of multistoreytimber-framed residential buildings in Växjöand Eslöv. MPD also completed the construction ofWorld Trade Center (WTC) Hamnplan in Malmöand started the development of a new commercialand residential district in the centre of Kävlinge.Property Development - Income before taxProperty Management - Income before taxSEK1501251007550250-25-50-75-100-125-150Million2004 2005 2006 2007 2008SEK6050403020100-10-20-30-40-50-60Million2004 2005 2006 2007 200816MIDROC EUROPE

MPD housing and accommodation projects consistof more than 180,000 m 2 of confirmed buildingrights and an additional 170,000 m 2 in the early developmentstages. In addition, the company holdsmore than 150,000 m 2 of confirmed building rightsand an additional 50,000 m 2 in the early developmentstages of commercial areas for trade, office,hotel and similar uses.MPD has efficient competences and, when needed,draws on project-specific resources from sistercompanies within Midroc, utilizing personnel withinfields such as project management, constructionmanagement and technical installations.Property ManagementThe portfolio of property holdings in Stockholmconsists of centrally-located properties within the innercommercial district of Stockholm primarily foroccupiers in the office sector, but also in the retailmarket. All buildings are extremely well-maintainedto a very high and presentable standard.The portfolio of property holdings in the Malmöarea consists of centrally-located properties.The regional economy in the Malmö/Copenhagenarea reflects the continuous growth resulting from thecompletion of a fixed link across the Öresund in theyear 2000. The commercial prospects are very promising,attracting the interest of Midroc real estate investments.Midroc Property Öresund AB, foundedin 2005, holds the two properties forming the newlyestablished World Trade Center in Malmö.Other properties owned and managed by Midrocinclude premises outside the main city areas. Forinstance, a conference facility north of Stockholm iscurrently in an expansion phase. A new facility witha total area of 5,000 m 2 comprising accommodationand conference facilities is under construction.SectorsThe total rentable area for the Midroc Europeproperties covers some 170,000 m 2 , with mixed useschemes included within the portfolio. The main emphasisis on light industries and offices.The Matchstick Palace, with its magnificent board meeting room.MIDROC EUROPE 17

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Property Investments ProjectsWorld Trade Center in Malmö– an energy-smart buildingMidroc Property Development (MPD) remains atthe forefront of new, functional architecture anddesign. In 2008, the World Trade Center at Hamnplanin Malmö was completed. Despite the large expansesof glass on the facade, the building is highlyenergy-efficient.“A great deal of planning work went into the WorldTrade Center, and we learned a lot about energyefficiency as the project progressed,” explains PeterSyrén, executive vice-president of MPD.Positive greenhouse effectThe calculated low energy consumption is thanks toan efficient double-glazed facade, motion-sensitivelighting, adaptive ventilation, use of natural cold air,and efficient control of pumps, fans and other motors.Aluminium blinds between the two layers ofglass keep the heat out in summer. In the winter, theheat that collects between the two panes can be usedto raise the temperature of the inner pane, makingthe room more comfortable.Smart lighting and volume-controlled ventilationPeople often forget to turn off the light when theyleave a room. At the new WTC-building, the lightingis controlled by motion sensors. You turn on thelights if necessary and they go out when you leave.Meters next to the windows sense light levels andadjust the luminosity accordingly, which further reducesboth lighting and air-conditioning costs.“Green issues are now recognizedas a critical success factor.”The ventilation system also adapts to occupancy,relating the levels of ventilation provided to thenumber of people in a room. To cool the rooms, airfrom outside is used when the outdoor temperatureis at or below 17 degrees Celsius.“Knowledge of these issues is increasing all the timein the industry, and green issues are now recognizedas a critical success factor. Saving energy is not onlygood for the environment; it also means long-termcost savings for property owners and tenants alike,”concludes Magnus Skiöld, CEO of MPD.The World Trade Center at Hamnplan in Malmö was completed in 2008.MIDROC EUROPE 19

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Midroc leads the way in moderntimber constructionFor over a century, the Swedish building codeprohibited the use of timber construction in multistoreyhousing projects. However, since Swedenjoined the EU in 1994, this restriction has been lifted.Timber-framed buildings possess a whole spectrumof advantages over other construction methods. Wecan for instance build cost-effectively, quickly andsafely, without increasing the negative environmentalimpact of the construction industry.Sweden’s tallest wooden residential blocksIn Växjö, Midroc Property Development has builtSweden’s tallest modern timber-framed residentialbuildings, Limnologen. These won a nationalaward for excellence in modern timber constructionin 2008.The project in Växjö, comprises four buildings ofsolid timber construction, eight storeys high andhousing a total of 134 apartments. In a lakefrontlocation, within walking and cycling distance ofdowntown, these modern apartments with a woodinspiredambience all enjoy lake views.The Limnologen project got under way in 2006.Two blocks are now occupied and the two remainingblocks are under construction. The developmentwill be completed in summer 2009.From granary to apartmentsAnother example of modern timber constructionis the former granary in Eslöv, where MPD transformeda historic grain storehouse into a high-risetimber-framed residential building, housing 31modern, airy apartments. There’s plenty of spacefor stylish living, with high ceilings, views stretchingfor miles and carefully preserved features.“The old granary now offers aunique and attractive place to live.”The exterior of the original granary was designedby Gunnar Asplund, one of the great Swedish modernistarchitects. The building was completed in1918 as one of nine national storehouses intendedto provide a more stable supply of grain after theFirst World War.Gunnar Asplund’s legacy lives on in a modern incarnationafter the transformation. Midroc PropertyDevelopment was responsible for planning andrenovating the building. Work started in the autumnof 2006 and was completed in 2008. The newoccupants have become the guardians of a piece ofarchitectural heritage that has been preserved andequipped for many more years of life.“The transformation from a storehouse into modernapartments was an exciting and educative experience,given the preserved timber frame and therequirements this entailed in terms of design solutionsand material selection,” says Magnus Skiöld,CEO of Midroc Property Development.The result was a solution that far exceeded thenorm in terms of fire safety, comfort and heat conservation.Meanwhile, the renovation was sensitiveto the building’s original architecture and formand took care to preserve features of cultural andindustrial historic value.MIDROC EUROPE 21

Midroc New TechnologyEstablished in 2006, Midroc New Technology is aventure capital company working with new technologies.The mission is to provide equity capital forcarefully selected high-risk business opportunities.Midroc New Technology (MNT) focuses on potentiallygroundbreaking technologies and businessconcepts in emerging sectors. The attention is directedtowards business ideas with clearly definedmarket prospects and advanced technology. Preferably,MNT invests in companies working on patentedrevolutionary technologies with global potential.Two areas of technology are represented in MNT’sinvestment portfolio, clean tech and life science.Ready to commercializeThe third business year for MNT saw intense activityas it provided risk capital, competence andnetworks for the development of existing portfoliocompanies.“We act in a business field withunlimited potential for profitable companiesperforming important tasks for bothpeople and the environment. ”Midroc collectively provides high-quality technicalcompetence in house. In 2008, MNT successfullycompleted technical proofs of concepts meaning thatthe focus for all the clean tech companies will nowshift to the commercialization process.Within the field of life science, MNT has invested inseveral new companies. The investments involve researchinto extracting alternatives to chemical drugsby applying new knowledge about human proteinsand peptides. Influencing the behaviour of the immunesystem makes it possible to address and treatdiseases and deficiencies that have in principle beenuntreatable until now. Within this area we have alsobeen able to complete several clinical studies, indicatingground-breaking results.Good publicity and new partnershipsIn 2008, MNT extended its collaboration withKarolinska Development in the area of life science,and within the field of clean tech made severalco-investments with partners including Volvo, Industrifonden,Saab and Verdane.All in all, MNT has seen good value growth duringthe year. The only effect of the financial crisis thathas been noticed is that orders have been delayedback, as companies are generally more risk-aversein times of economic uncertainty.The company’s achievements have also receivedwidespread recognition this year in its fields of operationand beyond, giving a very positive return interms of publicity and credibility. This further raisesan already high profile, leading in turn to manyenquiries from entrepreneurs seeking assistance indeveloping a variety of ideas and proposals.22MIDROC EUROPE

Highlights 2008• Investments in four new lifescience companies• The results from clinical studies ontarget and beyond expectation.• First commercial orders for severalclean tech companies.• Air2air, a company in the MNT portfolio,was selected as one of Sweden’s12 Climate Entrepreneurs in theWWF-sponsored project.• Awarded as one of the most diligentlean tech investors in Sweden for thesecond consecutive year.MIDROC EUROPE 23

Midroc ABMidroc AB (registration number 556366-0033) isa holding company operating through three subgroups- Midroc Contracting AB, Midroc PropertyDevelopment AB and Midroc Support AB. In turn,they hold subsidiaries active in the fields of civil andindustrial contracting, project management, engineering,property development. Midroc SupportAB represents the shared functions for Midroc ABas well as for the other three parent companies thatform Midroc Europe, namely Granitor Invest AB,Midroc Real Estate AB and Midroc New TechnologyAB. Shared functions are typically Group Managementand Business Development, Informationand Communication, Human Resources, IT, Procurementand Risk & Security Management. At thebeginning of 2009, the subsidiary ABV Rock GroupAB was assigned to an affiliated enterprise.Turnover and ResultThe consolidated income for Midroc AB Groupreflects the change in the business cycle duringthe latter part of 2008, particularly on the housingand property market. Both the sale of co-operativeapartments and divestment of other properties inour portfolio came to a complete stop during thelast quarter. On the positive side, we can note thatour Contracting & Consulting companies havegenerated an all time high result. The final result forthis parent company includes a reserve of SEK 80million for risk related to ongoing housing developmentprojects.Income before tax was SEK 42.3 million (190.7) andthe Group’s operating income was SEK 37.5 million(181.6). Consolidated Group turnover totalled SEK2.019 million (2.156).Balance SheetThe balance sheet total has changed marginally sincelast year, from SEK 1.636 million in 2007 to SEK1.633 million in 2008. The Group’s solidity, definedas equity plus financing by shareholders divided bythe balance sheet total as per 2008-12-31, was 57%(55%). Property and land within the Property Developmentsegment are considered current assets.The actual market value of land and property assetsis higher than the book value.Parent CompanyThe parent company, Midroc AB, generated a turnoverof SEK 0 (0) and an income of SEK -0 (-1.000)before appropriations and tax.PersonnelThe Midroc AB Group employed an average of 1,000people during 2008, 300 of whom were employed atsubsidiaries in Germany, UK, France, Poland andSouth Africa, whilst the remainder were employedby Swedish companies within the Group.Midroc AB - Income before taxSEK2502252001751501251007550250Million2004 2005 2006 2007 2008Midroc AbMidroc Contracting ABAlucrom ABGP Ställningar ABRodoverken ABBAC Corrosion Control LtdMetalock Engineering ABMidroc Project Management ABMidroc Engineering ABMidroc Project CM ABMidroc Property Development ABMidroc Projects ABMidroc Business Center ABMidroc Land Development ABMidroc Support AB24MIDROC EUROPE

Year-end statement 2008CONSOLIDATED INCOME STATEMENT(Amounts in SEK thousands) 2008 2007Net sales 2 019 717 2 155 745Cost of goods sold -1 713 684 -1 730 804Administrative expenses -257 685 -242 719Other operating income and expenses -11 198 -619Operating income 37 150 181 603Financial items 5 196 9 138Income before appropriations and tax 42 346 190 741Tax -19 501 -53 438CONSOLIDATED STATEMENT OF CASH FLOW(Amounts in SEK thousands) 2008 2007Cash flow from operating activities excl.working capital67 212 161 145Changes to inventories -230 580 -24 958Changes to working capital -56 580 95 911Cash flow from operating activities -219 948 232 098Net from investments and sales -84 819 -96 489External financing 84 190 12 639Owner financing -6 450 -Cash flow for the year -227 027 148 248Net income 22 845 137 303CONSOLIDATED BALANCE SHEETAssets(Amounts in SEK thousands) 2008-12-31 2007-12-31FIXED ASSETSIntangible assets 11 820 11 801Tangible assets 289 860 238 426Financial assets 29 006 23 565Total fixed assets 330 686 273 792CONSOLIDATED BALANCE SHEETEquity and liabilities(Amounts in SEK thousands) 2008-12-31 2007-12-31EQUITYRestricted equity 391 800 391 800Retained earnings 505 128 356 491Net income 22 845 137 303Total equity 919 773 885 594CURRENT ASSETSInventories 53 929 25 243Property for resale 524 913 330 642Financial assets 8 183 40 000Accounts receivable etc. 638 106 661 799Liquid assets 77 622 304 800Total current assets 1 302 753 1 362 484TOTAL ASSETS 1 633 439 1 636 276LIABILITIESShareholder’s loan, interest bearing 5 105 13 899Long-term liabilities, interest bearing 157 197 112 361Long-term liabilities, non-interest bearing 8 300 1 573Current liabilities, interest bearing 2 880 2 299Current liabilities, non-interest bearing 540 184 620 550Total liabilities 713 666 750 682TOTAL EQUITY AND LIABILITIES 1 633 439 1 636 276MIDROC EUROPE 25

Granitor Invest ABGranitor Invest AB (registration number 556615-2491) is the parent company of Midroc Invest AB(registration number 555620-6768), WP InternationalAB (registration number 556355-2628). Themajor activities within Granitor Invest AB arerelated to contracting carried out by Midroc ElectroAB and the Midroc Environment Group, bothsubsidiaries of Midroc Invest AB. WP Internationalundertakes minor business operations.Turnover and ResultThe market for electrical installations improved during2008 and Midroc Electro recorded its strongestyear to date. The company continued to improve itsprofitability and delivered a highly satisfactory result.The company concluded a major electrical andautomation installation contract regarding a newconcentrating and pelletizing plant for the Swedishmining industry.The Midroc Environment Group provides soil remediationservices through its subsidiary Ekotec.As a result of an increasing demand for small- andmedium-sized soil remediation services on theSwedish market, this company also recorded itsstrongest year to date.Group turnover totalled SEK 1.647 million (1.591)with an income before tax of SEK 139.9 million(136.6).Balance SheetThe balance sheet total decreased from SEK 638million in 2007 to SEK 596 million at the end ofthe financial period 2008. The Group’s solidity, definedas equity plus financing by shareholders dividedby the balance sheet total as per 2008-12-31,was 44% (41%).Parent CompanyThe parent company, Granitor Invest AB, generateda turnover of SEK 0(0) and an income ofSEK - 6.5 million (59.0) before appropriations andtax. Last year, companies in the Group contributedto the profit, before appropriations and tax, withdividends of SEK 67.7 million.PersonnelThe Midroc Invest Group employed an average of1,200 people (1,200) during 2008, all of whom wereemployed by subsidiaries in Sweden.Tumstock Sweden AB, an online shop for handheldtools, workwear and supplies, was closed down atthe end of 2008.Granitor Invest AB - Income before taxSEK150125100MillionGranitor Invest AbMidroc Invest ABMidroc Electro ABMidroc Environment ABWP International AB75502502004 2005 2006 2007 200826MIDROC EUROPE

Year-end statement 2008CONSOLIDATED INCOME STATEMENT(Amounts in SEK thousands) 2008 2007Net sales 1 647 541 1 590 989Cost of goods sold -1 368 713 -1 364 844Administrative expenses -99 234 -64 719Other operating income and expenses -38 019 -27 743Operating income 141 575 133 683Financial items -1 576 2 900Income before appropriations and tax 139 999 136 583Tax -51 538 -44 816CONSOLIDATED STATEMENT OF CASH FLOW(Amounts in SEK thousands) 2008 2007Cash flow from operating activities excl.working capital130 553 114 052Changes to inventories 880 1 348Changes to working capital 103 16 428Cash flow from operating activities 131 536 131 828Net from investments and sales -5 911 -10 903External financing -40 000 -12 000Owner financing -92 000 -25 000Cash flow for the year -6 375 83 925Minority share -171 -2 324Net income 88 290 89 443CONSOLIDATED BALANCE SHEETAssets(Amounts in SEK thousands) 2008-12-31 2007-12-31FIXED ASSETSIntangible assets 23 000 23 198Tangible assets 20 785 25 143Financial assets 6 984 1 599Total fixed assets 50 769 49 940CURRENT ASSETSInventories 6 655 10 390Accounts receivable etc. 299 193 332 156Liquid assets 238 923 245 298Total current assets 544 771 587 844TOTAL ASSETS 595 540 637 784CONSOLIDATED BALANCE SHEETEquity and liabilities(Amounts in SEK thousands) 2008-12-31 2007-12-31EQUITYRestricted equity 102 102Retained earnings 80 021 60 578Net income 88 290 89 443Minority interest 6 029 5 858Total equity 174 442 155 981LIABILITIESShareholder’s loan, interest bearing 85 400 107 400Long-term liabilities, interest bearing 9 024 8 949Long-term liabilities, non-interest bearing 68 029 30 528Current liabilities, interest bearing - 40 000Current liabilities, non-interest bearing 258 645 294 926Total liabilities 421 098 481 803TOTAL EQUITY AND LIABILITIES 595 540 637 784MIDROC EUROPE 27

Midroc Real Estate ABWithin Midroc Real Estate AB, subgroup MidrocProperties manages the Stockholm portfolio whileMidroc Property Öresund AB is responsible for theMalmö portfolio. In Stockholm and Malmö the leasemarket for commercial activities is acceptable withreasonable demand for office spaces. There is verylittle turnover among our tenants and one of thetools we use to achieve this is to agree to “soft leases”where we take a flexible attitude towards tenants’variation in space need over time.Turnover and ResultMost of Midroc Real Estate’s properties in Stockholmare let and all commercial retail premises areoccupied. Our vacancy factors have been reducedand are now at 3% which is very satisfactory. Thenotice of contract termination in 2009 by one majortenant, currently occupying two high profile properties,has triggered our efforts to develop new usageconcepts for these buildings. North of Stockholm,the work with expanding the Hackholmssund ConferenceCenter by a new conference facility of 5,000m 2 has been in progress during the year.In Malmö, the first World Trade Center complexis fully occupied and completion of the adjacent,second complex enabled the fist tenants to takeup residence in December, 2008. Contruction of anew business hotel linked to the WTC facilities alsocomenced during the year.The Group generated a turnover of SEK 211 million(199) and an income of SEK 6.4 million (435)before tax. Planned divestment of a major strategicblock of shares was completed in 2007, significantlyinfluencing last year’s result.Balance SheetThe balance sheet total increased from SEK 2,634million in 2007 to SEK 2,718 million at the endof financial period 2008. According to a propertyvaluation, the market value exceeds book value bySEK 850 million before tax.Parent companyThe parent company Midroc Real Estate AB generateda turnover of SEK 1.4 million (1.3) and anincome of SEK -22.2 million (232.5) before appropriationsand tax.PersonnelDuring 2008, all 14 staff members of the companywere formally transferred to the sister companyMidroc Property Development AB. Althoughleaving Midroc Real Estate with no employees, thesame experienced individuals continue to providethe same services for the company.Midroc Real Estate AB - Income before taxSEK500450400350300250200150100500-50-100Million2004 2005 2006 2007* 2008Midroc Real ESTATE AbMidroc Properties ABMidroc Property Öresund ABOthers* SEK 409 Million extraordinary gain from sale of shares28MIDROC EUROPE

Year-end statement 2008CONSOLIDATED INCOME STATEMENT(Amounts in SEK thousands) 2008 2007Net sales 210 969 199 294Property expenses -89 181 -81 145Administrative expenses -29 781 -27 555Other operating income and expenses - -108 353Operating income 92 007 -17 759Financial items -85 607 452 893Income before appropriations and tax 6 400 435 134CONSOLIDATED STATEMENT OF CASH FLOW(Amounts in SEK thousands) 2008 2007Cash flow from operating activities excl.working capital33 396 -93 965Changes to working capital -141 524 146 414Cash flow from operating activities -108 128 52 449Net from investments and sales -254 656 413 617External financing 127 410 -25 272Owner financing -226 -Cash flow for the year -235 600 440 794Tax -805 -119 830Net income 5 595 315 304CONSOLIDATED BALANCE SHEETAssets(Amounts in SEK thousands) 2008-12-31 2007-12-31FIXED ASSETSTangible assets 2 212 721 1 985 058Financial assets 10 385 11 193Total fixed assets 2 223 106 1 996 251CURRENT ASSETSAccounts receivable etc. 118 346 25 282Short term investments - 196 980Liquid assets 376 986 415 606Total current assets 495 332 637 868TOTAL ASSETS 2 718 438 2 634 119CONSOLIDATED BALANCE SHEETEquity and liabilities(Amounts in SEK thousands) 2008-12-31 2007-12-31EQUITYShare capital 10 000 10 000Restricted reserves 32 314 48 098Non-restricted reserves 372 504 41 416Net income 5 595 315 304Total equity 420 413 414 818LIABILITIESShareholder’s loan, interest bearing 448 571 448 797Long-term liabilities, interest bearing 1 554 074 1 422 777Long-term liabilities, non-interest bearing 121 939 112 767Current liabilities, interest bearing 21 385 25 272Current liabilities, non-interest bearing 152 056 209 688Total liabilities 2 298 025 2 219 301TOTAL EQUITY AND LIABILITIES 2 718 438 2 634 119MIDROC EUROPE 29

Owner and Board of DirectorsThe owner of the Midroc trademark is SheikhMohammed H. Al-Amoudi. Headquartered in Jeddah,Saudi Arabia, the Midroc international holdingcompany operates on four continents having some24,000 employees of various nationalities.As one of the largest foreign investors in Sweden,Al-Amoudi also owns Preem Petroleum: the largestoil company in the country with two refineries constituting75% of the Swedish oil refining capacityand a distribution network comprising over 500 petrolstations all over Sweden. Al-Amoudi has twicebeen honoured with the Swedish Royal Order ofthe Polar Star for his investments in Swedish trade.Responsible for strategic development as well assupervision and control of business operations, theBoard of Directors ensures that relevant rules andregulations are followed, complying with directivesdiscussed and agreed at the Annual General Meeting.Decisions regarding major investments, ethicalissues and operating principles are other responsibilitiesdealt with by the Board.An Executive Committee (ExCom) appointed bythe Board implements agreed strategies in order tosecure the development of the Group and fulfil theBoard’s requirements for supervision of daily operations.The ExCom interacts with each individual subsidiary’smanagement on strategic and tactical issues.One or more of the committee members are representedon each subsidiary’s board – a platform fromwhich they can properly fulfil their assignments.BOARD COMPOSITIONSMIDROC ABMembersAbdullah Al-Amoudi, chairmanWaddah Al-AlemKarim KaramanRoger WikströmChrister WikströmThomas Mårtensson, special adviser, MDGRANITOR INVEST ABMembersRoger Wikström, chairmanMohammed Al-AmoudiAbdullah Al-AmoudiChrister Wikström, MDWaddah Al-Alem, special adviserThomas Mårtensson, special adviserMIDROC REAL ESTATE ABMembersAbdullah Al-Amoudi, chairmanWaddah Al-AlemKarim KaramanRoger Wikström, MDChrister WikströmThomas Mårtensson30MIDROC EUROPE

Abdullah Al-AmoudiBased in Jeddah, Saudi Arabia andDirector General of the Midroc internationalholding company since 1998 , heis responsible for the global strategiesof Midroc.Christer WikströmActive director of the boards of mostcompanies within Midroc Europe. WorkingChairman in several of the companies.Responsible for short- and longtermgroup development, financing andstrategy. Member of Group Managementand the Executive Committe ofMidroc Europe.Roger WikströmActive director of the boards of most companieswithin Midroc Europe. Working Chairmanin several of the companies. Responsible forshort- and long-term group development,financing and strategy. Member of GroupManagement and the Executive Committe ofMidroc Europe.Waddah Al-AlemDr. Al-Alem has held the position of DeputyDirector General at Midroc international holdingcompany since 1998.Thomas MårtenssonActive director of the boards of mostcompanies within Midroc Europe. WorkingChairman in several of the companies.Responsible for short- and longtermgroup development, financing andstrategy. Member of Group Managementand the Executive Committe ofMidroc Europe.Karim Karaman (absent)Mr. Karaman has held the positions ofDirector and President of Preem Holdingssince 2001 and is Director of PreemPetroleum and Svenska Petroleum ExplorationAB.MIDROC EUROPE 31

ContactsPARENT COMPANIESOPERATING COMPANIESMidroc AB Midroc Engineering AB BAC Corrosion Control Ltd Metalock Sweden ABP.O. Box 2053SE-174 02 SundbybergSwedenP.O. Box 2092SE-174 02 SundbybergSwedenStafford Park 11Telford TF3 3AYUnited KingdomP.O. Box 1523SE-401 50 GöteborgSwedenMidroc PropertyDevelopment ABGP Ställningar ABMetalock Industrie ServiceGmbHJungmansgatan 12SE-211 19 MalmöSwedenKasens IndustriområdeSE-451 50 UddevallaSwedenGutenbergring 64D-22848 NorderstedtGermanyMidroc Project CM AB Rodoverken AB Metalock Engineering UK LtdP.O. Box 2053SE-174 02 SundbybergSwedenAlucrom ABP.O. Box 8919SE-402 73 GöteborgSwedenHYAB HässleholmsYtbehandlings ABP.O. Box 2034SE-281 02 HässleholmSwedenP.O. Box 7SE-444 21 StenungsundSwedenSvedjeholmens IndustrimontageABP.O. Box 23SE-892 21 DomsjöSwedenSTIREP ABP.O. Box 502SE-146 33 TullingeSweden11 Paragon Way, Bayton RoadExhall, Coventry CV7 9QSUnited KingdomMetalock Industrie ServiceSARL22, rue des EntrepreneursZ.A. de la Plaine HauteF-91560 CrosneFranceMetalock South AfricaP.O. Box 5903Johannesburg 2000South AfricaMidroc Project Management AB HYAB Alucrom Sp. Z o. o.P.O. Box 2053SE-174 02 SundbybergSwedenBykow 9055-095 MirkowPolandGranitor Invest AB Midroc Electro AB Ekologisk Technologi iSkelleftehamn ABP.O. Box 2053SE-174 02 SundbybergSwedenP.O. Box 501SE-811 25 SandvikenSwedenP.O. Box 34SE-932 21 SkelleftehamnSwedenMidroc Real Estate AB Midroc Properties AB Midroc Property Öresund AB Hackholmssund Konferens ABP.O. Box 5785SE-114 87 StockholmSwedenP.O. Box 5785SE-114 87 StockholmSwedenP.O. Box 2053SE-174 02 SundbybergSwedenBroSE-197 91 BroSwedenMidroc New Technology ABP.O. Box 2053SE-174 02 SundbybergSweden32MIDROC EUROPE

www.midroc.se