Corporate Transaction Trends

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1 No. of transactions Transaction Advisory Services Transactions by Sweden s largest companies Corporate Transaction Trends Encouraging start to 2013 with upside potential intact, a quarterly publication that aims to identify trends in the level and direction of transactions completed by Sweden s largest companies, reports an encouraging start to 2013 continuing the modest recovery since Q The pipeline of announced but not yet completed transactions as at the end of Q remains at a modest level. However, it is sufficient to indicate that the present run rate of completed transactions should at least continue in the first half of During Q1 2013, large Swedish companies completed 30 transactions. This is a 7% increase compared to the previous quarter, representing a 10% increase in the number of completed acquisitions (22) and an unchanged number of divestments (8). We therefore maintain our forecast that full year transaction activity in 2013 will be at the same level or better than in The potential to reach up to 150 completed deals in 2013 if global economic activity continues to improve remains intact. Compared to Q1 2012, the yearonyear decrease in the number of completed transactions was 12%. However, on an LTM basis, the decrease in the number of completed transactions (125) was only 3%. One slightly negative aspect of Q is that we have not yet seen the anticipated increase in the number of divestments. However, that may be due to sales processes that are designed to complete towards the end of Q Rolling last twelve months (LTM) transactions Q1 '06 Q1 '07 Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '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 Q1 Q2 Q3 Q4 FY13 FY12 FY11 FY Year on year quarterly divestments Ranked by Enterprise Value, Hakon Invest s acquisition of the remaining 60% of ICA was by far the largest transaction completed in Q The largest divestment was Kungsleden s sale of 50% of Hemsö Fastighets to The Third AP Fund, which became the 100% owner. The share of completed acquisitions in the increased to 27% in Q1 2013, while the region and Western accounted for 59% of total acquisitions. 7 of divestments were in the region. Manufacturing and construction retained its position as the most active industry sector, accounting for 50% of all completed transactions and nearly 60% of acquisitions in Q Finance and real estate was the next most active sector Q1 Q2 Q3 Q4 FY13 FY12 FY11 FY10 Q largest transactions (ranked by Enterprise Value) Date Target Seller Buyer Enterprise Target Value ( 100% ) Turnover M M 2013/03 ICA (60%) Royal Ahold Hakon Invest 3,865 11, /01 Pernod Ricard brands Pernod Ricard Ratos (ArcusGruppen) 103 n.a 2013/02 Blohm + Voss Industries Star Capital Partner SKF /02 Hemsö Fastighets (50%) Kungsleden Tredje APfonden /02 Stofa Ratos Syd Energi Net /01 NextGenTel TeliaSonera Telio Sources: Press releases and latest available financial reports. 2

3 Last twelve months (LTM) and 2012 by size Target Turnover Q2'12 Q3'12 Q4'12 Q1'13 LTM 2012 under M M over M Total Target Turnover Q2'12 Q3'12 Q4'12 Q1'13 LTM 2012 under M M over M Total Q and last twelve months (LTM) by industry sector and size Target Turnover Q1'13 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 LTM by geographic region Asia (excl Japan) Americas (excl ) 8% Asia Japan (excl 1% Japan) 4% 1% 27% 32% 22% 3 4% W 27% W 24% 3% 3% 2 E 9% 7 W 21% 64% 4

5 Ernst & Young Assurance Tax Transactions Advisory Transaction Advisory Services Contacts Jesper Almström Head of Transaction Advisory Services, Transaction Support Staffan Ekström M&A Advisory Staffan Folin M&A Advisory Björn Gustafsson Valuation & Business Modelling Johan Nordström Restructuring Henrik Eriksson 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. About Ernst & Young Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 167,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. Ernst & Young refers to the global organisation of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. About Ernst & Young s Transaction Advisory Services How organisations manage their capital agenda today will define their competitive position tomorrow. We work with our clients to help them make better and more informed decisions about how they strategically manage capital and transactions in a changing world. Whether you re preserving, optimising, raising or investing capital, Ernst & Young s Transaction Advisory Services bring together a unique combination of skills, insight and experience to deliver tailored advice attuned to your needs helping you drive competitive advantage and increased shareholder returns through improved decision making 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 Exchange and have a market capitalization over MSEK 5,000; and (ii) other Swedish companies with a turnover of more than MSEK 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 MSEK 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. Information in this publication is in summary form and is therefore intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Ernst & 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 Ernst & Young AB. All Rights Reserved.