Transaction. Robust transaction activity and a positive outlook - Q4 '06 Q4 '07 Q4 '08 Q4 '09 Q4 '10 Q4 '11 Q4 '12 Q4 '13

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1 No. of transactions Transaction Advisory Services Transactions by Sweden s largest companies Corporate Transaction Trends Robust transaction activity and a positive outlook, a quarterly publication that aims to identify trends in the level and direction of transactions completed by Sweden s largest companies, reports a robust upturn in transaction activity in Overall, large Swedish companies completed 140 transactions in 2013 representing a 9% increase compared to 2012 (129 transactions). While this is 10% below the number of completed deals in 2011 (155), it is 73% above the record low level in The number of acquisitions increased by 11% in 2013 (104) compared to the previous year driven by an increase in the number of smaller transactions involving targets with a turnover of less than M saw one more completed divestment (36) than in 2012, continuing a gentle upward trend since Rolling last twelve months (LTM) transactions After a slightly slow first quarter, the level of transaction activity has been fairly consistent during the remainder of The number of transactions completed in Q (35) was one fewer than in the previous quarter but 25% higher than in Q As a result, the full year outturn for 2013 is at the mid-point of our one year ago forecast of at least 129 and up to 150 completed deals depending on the improvement in global economic conditions. Looking forward, the increasing economic confidence in developed markets should support further positive momentum in transaction activity. In our view, the number of completed transactions in 2014 could increase by at least 10% to reach or exceed the 155 deals seen in Y s latest annual Global Corporate Divestment Survey found that a third of global businesses are planning a divestment in the next two years while receiving an offer at a 30% premium would bring a majority of executives to the deal table Q4 '06 Q4 '07 Q4 '08 Q4 '09 Q4 '10 Q4 '11 Q4 '12 Q4 '13 LTM no. of transactions LTM no. of aquisitions LTM no. of divestments

2 No. of transactions No. of transactions Year on year quarterly acquisitions Ranked by nterprise Value, Hakon Invest s acquisition of the remaining 60% of ICA was the largest transaction completed in 2013 while Atlas Copco completed the most acquisitions. Notable strategic divestments included Tele2 s sale of its business in Russia. Additionally, during the second half of 2013, Höganäs and Alliance Oil were taken private in the first such takeovers of large Swedish listed companies since Q1 Q2 Q3 Q4 FY13 FY12 FY11 FY10 Year on year quarterly divestments The share of acquisitions completed in the continued to grow reaching 27% of total acquisitions in This represents an eight percentage point increase compared to The region and Western accounted for 55% of completed acquisitions in 2013, a year on year decrease of 7 percentage points Q1 Q2 Q3 Q4 The region increased its share of total divestments to 61% in 2013, while the share of divestments in Western decreased by 17 percentage points year on year to 14%. As in 2012, Manufacturing & construction and TMT were the most active industry sectors in 2013 representing 44% and 15% of total completed transactions respectively. FY13 FY12 FY11 FY10 Q largest transactions (ranked by nterprise Value) Date Target Seller Buyer nterprise Target Value ( 100% ) Turnover Acquisitions M M 2013/11 Vinda International Holdings (38.6%) Public offer SCA 1, /10 Kaydon Corp Public offer SKF /12 Commercial properties G Capital Real state Kungsleden /12 Alliance Oil Company (57%) Public offer Alliance Group 2,472 2, /12 Amager power station Vattenfall HOFOR 268 n.a. 2013/10 KMT Group Nordstjernan American Industrial Partners Sources: Press releases and latest available financial reports. 2

3 2013 largest transactions (ranked by nterprise Value) Date Target Seller Buyer nterprise Target Value ( 100% ) Turnover Acquisitions M M 2013/03 ICA (60%) Royal Ahold Hakon Invest 3,865 11, /11 Vinda International Holdings (38.6%) Public offer SCA 1, /10 Kaydon Corp Public offer SKF /05 Permobil Capital Investor /07 Power-One ABB /12 Commercial properties G Capital Real state Kungsleden /05 SF Bio (60%) Bonnier Ratos /07 Rio Tinto agle Mine Rio Tinto Lundin Mining 232 n.a. 2013/09 Bovista Invest (portfolio of residential properties) Balder 227 n.a. 2013/07 Omthera Pharmaceuticals AstraZeneca n.a. 2013/09 Gambro (49%) Investor Baxter International 3,010 1, /04 Tele2 Russia Tele2 VTB Group 2,750 1, /12 Alliance Oil Company (57%) Public offer Alliance Group 2,472 2, /09 Höganäs Public offer H Intressenter 1, /02 Hemsö Fastighets (50%) Kungsleden Tredje AP-fonden /09 Widerøes Flyveselskap (80%) SAS Torghatten ASA, Fjord1 AS and Nordland Fylkeskommune 2013/12 Amager power station Vattenfall HOFOR 268 n.a. 2013/02 Stofa Ratos Syd nergi Net /10 KMT Group Nordstjernan American Industrial Partners /01 NextGenTel TeliaSonera Telio V including the maximum earnout consideration would be M V is for 100% of SF Bio and Finnkino combined 3 V including the maximum milestone related deferred consideration would be M 327 Sources: Press releases and latest available financial reports. 3

4 2013 and by size Acquisitions Target Turnover Q1'13 Q2'13 Q3'13 Q4' under M M over M Total Target Turnover Q1'13 Q2'13 Q3'13 Q4' under M M over M Total Q and 2013 by industry sector and size Target Turnover Q4' Industry sector Band Acquisitions Acquisitions 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

5 Q by geographic region Acquisitions Asia (excl Americas 4% (excl ) 7% Row 4% 22% 2013 by geographic region Acquisitions Americas (excl ) 5% Asia (excl 4% Row 2% 29% 30% 11% W 22% 27% 7% W 26% Asia (excl 13% RoW 13% 50% Asia (excl 3% 3% 16% Row 3% 12% 12% W 14% 61% Hot Topic Corporate divestments Pär-Ola Hansson Deputy leader MIA Transaction Advisory Services Tel Mobile mail par-ola.hansson@se.ey.com Y s latest annual Global Corporate Divestment Survey, based on feedback from more than 700 corporate executives around the world, finds that a third of global companies are planning a sale and a majority are open to offers as global M&A activity grows. While 33% of global businesses are planning a sale in the next two years, 80% of respondents are open to offers for prized assets and a 30% premium on a fair price would bring a majority of executives to the deal table. However, not everyone has a price 20% of respondents wouldn t sell prized assets at any price. At a time when we see renewed focus on deals, these insights into price expectations will be interesting reading for potential buyers. are now a fundamental part of business strategy selling is becoming as great a focus for many COs as buying, with strategic divestments and capital redeployment offering a route to value and growth. Leading companies that consistently analyze their core business through portfolio reviews and are prepared to act strategically rather than opportunistically achieve the most successful divestments. Such companies regularly redefine their strategic core business and determine whether to invest, acquire or divest. More than half of respondents have divested an asset in the past two years. The large majority (80%) of those that pursued a strategic rather than opportunistic approach to a sale saw a positive impact on the valuation as a result half of them experienced greater benefits than anticipated, compared to only a fifth of companies 12 months ago. However, further opportunities to optimize value remain, with half of respondents saying they don t conduct regular portfolio reviews to assess new growth opportunities. As with all aspects of M&A, different factors drive divestment activity across industries. In the fast moving Technology sector, half of executives say the main trend prompting them to consider divestments is developments in big data and analytics, followed by cloud innovations and mobile as companies re-evaluate their core business and competitive positions. In Life Sciences, 41% expect to divest in the next two years with regulatory changes the main driver. 5

6 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 Antoine van Horen Transaction Tax 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. We 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. We work with clients to create social and economic value by helping them make better, more informed decisions about strategically managing capital and transactions in fast-changing markets. Whether 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. We 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.