Transaction. Strong start to 2014 as confidence returns - Q1 '07 Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14

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1 No. of transactions Transaction Advisory Services Transactions by Sweden s largest companies Corporate Transaction Trends Strong start to 2014 as confidence returns, a quarterly publication that aims to identify trends in the level and direction of transactions completed by Sweden s largest companies, reports strong growth in transaction activity as economic confidence continues to improve. During Q1 2014, large Swedish companies completed 38 transactions. This is a 27% increase compared to Q and 9% higher than the relatively strong previous quarter. The number of completed acquisitions (30) in Q is the highest first quarter number since 2008 and is 36% higher than in the prior year period. However, an anticipated increase in divestment activity is not yet visible, and the number of divestments (8) was at the same level as both the previous quarter and one year ago. Overall, the LTM number of completed transactions (148) increased for the third consecutive quarter and is now 21% higher than at Q The prospects for a continuing growth in deal activity are further supported by a relatively strong pipeline of announced but not yet completed transactions. e therefore maintain our forecast that full year transaction activity in 2014 could reach, or even exceed, the 155 deals completed in The upside potential is further supported by Y s most recent Capital confidence barometer, which indicates a strong intention for large global companies to engage in bigger, transformational deals during the next 12 months. Rolling last twelve months (LTM) transactions Q1 '07 Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14 LTM no. of transactions LTM no. of aquisitions LTM no. of divestments

2 No. of transactions No. of transactions Year on year quarterly acquisitions Q1 Q2 Q3 Q4 FY14 FY13 FY12 FY11 Year on year quarterly divestments Ranked by nterprise Value, the two largest acquisitions completed in Q were AstraZeneca s acquisition of BristolMyers Squibb s diabetes business and Atlas Copco s acquisition of dwards Group. Notable strategic divestments included AB Volvo s sale of Volvo Rents to Platinum quity and Vattenfall s sale of assets in Germany. The largest acquisition and the two largest divestments in the quarter were completed in the. Overall, the share of transactions completed in the (21%) remained at the same level as in full year By comparison, the region accounted for almost one third of all transactions completed in Q Manufacturing & construction was again the most active industry sector and accounted for 6 of total acquisitions completed in Q Q1 Q2 Q3 Q4 FY14 FY13 FY12 FY11 Q largest transactions (ranked by nterprise Value) Date Target Seller Buyer nterprise Target Value ( 100% ) Turnover M M 2014/02 Diabetes business BristolMyers Squibb AstraZeneca 1,961 1 n.a. 2014/01 dwards Group CCMP Capital Advisors, Unitas Capital AtlasCopco 1, /03 Oranje and Kroon Betsson /01 Volvo Rents AB Volvo Platinum quity /02 Thiele Kaolin (40.2%) Stora nso Thiele Kaloin 139 n.a. Sources: Press releases and latest available financial reports. 1 V including the maximum milestone related earnouts and additonal payment for transfer of certain assets would be M 3,154 2

3 LTM and 2013 by size Target Turnover Q2'13 Q3'13 Q4'13 Q1'14 LTM 2013 under M M over M Total Target Turnover Q2'13 Q3'13 Q4'13 Q1'14 LTM 2013 under M M over M Total Q and LTM by industry sector and size Target Turnover Q1'14 LTM Industry sector Band Basic industries under M M over M Manufacturing and construction under M M over M Retail and consumer goods under M M over M Finance and real estate under M M over M Healthcare under M M over M TMT under M M over M Services under M M over M Total under M M over M Total

4 Q by geographic region Americas (excl ) 20% Ro 7% 30% LTM by geographic region Americas (excl ) 5% 25% Ro 29% 34% 7% 28% Row 25% 37% 8% 11% 38% 22% 5 Hot Topic Capital confidence barometer PärOla Hansson Deputy leader MIA Transaction Advisory Services Tel Mobile mail parola.hansson@se.ey.com Large headlinehitting M&A deals are set to take center stage over the next 12 months as global companies place fewer but bigger bets on the deal table according to Y s tenth biannual Capital confidence barometer, a survey of more than 1,600 senior executives from large companies in 54 countries and across industry sectors in April Confidence in global credit availability is also at its highest level in five years, with 88% of respondents considering credit availability as improving or stable. Almost 30% of companies indicated that their deal pipeline is expected to increase, with 27% of respondents intending to engage in deals over $ 500m while 12% are planning bigger deals exceeding $ 1bn a clear sign that transformational acquisition activity is accelerating. However, executives are having to make selective M&A choices with 9 influenced by shareholder pressure to focus on cost reduction. conomic confidence is more resilient than at any time in recent years, with 60% of respondents viewing the global economy as improving. However, 30% of executives perceive global political instability to be the greatest economic risk. It is no surprise therefore that many companies are balancing confidence and caution. The result is a strategic focus that combines cost management with growth and selective acquisitions as companies are opting for quality rather than quantity. Interest in acquiring assets in emerging markets such as China and India continues but is balanced by a focus on mature markets such as the, UK and Germany. The next five most favored investment destinations show a similar balance of emerging and mature markets: Brazil, Ireland, Japan, Singapore and UA. The industry sectors looking to do the biggest deals are retail and wholesale, power and utilities, telecoms and technology, metals and mining and oil and gas, while a high level of deal volume is also anticipated in financial services and life sciences. The valuation gap between the price buyers are willing to pay and sellers will accept for assets often a barrier to deals has continued to contract with almost 50% of respondents saying the gap is now less than 10%. This should create an environment in which companies can close larger, strategic deals. 4

5 Quarter Transaction Advisory Services Contacts Jesper Almström Head of Transaction Advisory Services, Transaction Support Staffan kström M&A Advisory Staffan Folin M&A Advisory Björn Gustafsson Valuation & Business Modelling Johan Nordström Restructuring Henrik riksson Operational Transaction Services Kristin Ringland Commercial Advisory Services Magnus Pantzar Transaction Tax jesper.almstrom@se.ey.com staffan.ekstrom@se.ey.com staffan.folin@se.ey.com bjorn.gustafsson@se.ey.com johan.nordstrom@se.ey.com henrik.u.eriksson@se.ey.com kristin.ringland@se.ey.com magnus.pantzar@se.ey.com Transaction Advisory Services provides professional advice in connection with acquisitions, divestments, financing, restructuring and other transactions. Our services include M&A advice, restructuring advice (including advice on working capital management), valuations and business modelling, transaction support (including financial due diligence), operational transaction services (including operational due diligence and integration services) and transaction tax services. Y Assurance Tax Transactions Advisory About Y Y is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. e develop outstanding leaders who team to deliver our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. Y refers to the global organisation and / or one or more of the member firms of rnst & Young Global Limited, each of which is a separate legal entity. rnst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. About Y s Transaction Advisory Services How you manage your capital agenda today will define your competitive position tomorrow. e work with clients to create social and economic value by helping them make better, more informed decisions about strategically managing capital and transactions in fastchanging markets. hether you re preserving, optimising, raising or investing capital, Y s Transaction Advisory Services combine a unique set of skills, insight and experience to deliver focused advice. e help you drive competitive advantage and increased returns through improved decisions across all aspects of your capital agenda. For more information about our organisation and our services, please visit Transactions covered in this publication are transactions completed by large Swedish companies, defined to mean (i) companies which are listed on the Stockholm Stock xchange and have a market capitalization over MSK 5,000; and (ii) other Swedish companies with a turnover of more than MSK 10,000. Swedish companies that are controlled by foreign groups have been excluded, unless they are headquartered in Sweden. Only transactions completed or declared unconditional in the period with an estimated deal value over approximately 50 MSK and which have resulted in a change of control or significant change of influence have been included. If large Swedish companies are present on both sides of the same transaction, the transaction is recorded as an acquisition. Public takeovers by third parties and demergers are recorded as divestments. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice. rnst & Young AB accepts no responsibility for any loss arising from any action taken or not taken by anyone using the material in this publication. For further enquiries, or to add your name to the mailing list for this publication, please send an to transactions@se.ey.com rnst & Young AB. All Rights Reserved.