INTERIM REPORT JANUARY-JUNE 2008

INTERIM REPORT JANUARY-JUNE 2008 

GOOD EARNINGS TREND CONTINUES SECOND QUARTER


• Operating income rose 51% to SEK 902 million (598). Organic growth was 9% 
• The operating profit after depreciation climbed SEK 77 million and amounted to

SEK 71 million (-6), giving an operating margin of 7.9% (-1.1)
• The profit after tax was SEK 46 million (-1) 
• Earnings per share (EPS) after dilution were SEK 2.54 (-0.19)
JANUARY - JUNE
• Operating income rose 81% to SEK 1 783 million (987). Organic growth was 10% 
• The operating profit after depreciation climbed SEK 116 million and amounted
to 
SEK 145 million (29), giving an operating margin of 8.2% (2.9)
• The profit after tax was SEK 92 million (31) 
• Earnings per share (EPS) after dilution were SEK 5.11 (1.43)

INCOME AND RESULTS
SECOND QUARTER
Operating income rose by SEK 304 million over the quarter amounting to SEK 902
mil¬lion (598). Organic growth was 9%. 

During the quarter the operating profit after depre¬ciation climbed SEK 77
million amounting to SEK 71 million (-6), giving an operating mar¬gin of 7.9%
(-1.1). Last year's results were burdened with SEK 26 million in one-off costs.
The improvement in the operating profit also includes the positive effects of
the Caran acquisition, the cost savings scheme carried out in 2007, and lower
pen¬sion costs due to a premium discount from Alecta of SEK 8 million. 

The savings that Volvo Cars announced in Q2 will mean a reduction in business
volu¬mes in the autumn. The range of the sav-ings scheme will probably not be
clear before the end of Q3. Over the year Volvo Car's share of Group sales has
declined from 21% to 17%.

The German business also saw a weak but positive operating profit in Q2. Two
major customers have introduced cost savings schemes and postponed starting
projects which had a negative impact on the busi¬nesses in Munich and
Rhein-Main. Other units in Germany reported profit improve¬ments. Excluding the
German business, the operating margin for the Group was 10.1% 
(-0.4). 

The profit after net financial items was SEK 66 million (-12). Net financial
items amounted to 
SEK -4 million (-5). The profit after tax was SEK 46 million (-1). The EPS after
dilution was SEK 2.54
(-0.19).

JANUAY - JUNE
Operating income for the first six months climbed by SEK 796 million and
amounted to SEK 1 783 million (987). Organic growth was 10%. 

During the period the operating profit after depreciation rose SEK 116 million
amounting to SEK 145 million (29) giving an operating margin of 8.2% (2.9). Last
year's results were burdened with SEK 27 million in one-off costs. A pensions
premium dis¬count from Alecta amounted to SEK 14 mil¬lion. 
Excluding the German business, the opera¬ting margin for the Group for the first
six months was 10.5% (4.4). 

The profit after net financial items was SEK 131 million (23). Net financial
items amoun¬ted to SEK -14 million (-5). The profit after tax was SEK 92 million
(31). The EPS after dilution was SEK 5.11 (1.43).

OUTLOOK
The savings announced by Volvo Cars during the second quarter will mean redu¬ced
business volumes in the autumn. Oth¬erwise demand is expected to remain strong
and there is a generally large need for recruitment.

THE NEW SEMCON
Two major acquisitions and one divestment of a branch of the business took place
in 2007. IVM Automotive in Germany was acquired on 1 April and Caran was
acquired on 31 August. The Zpider business area's companies were sold on 31
December. Pro forma sales for the Group in 2007 amounted to SEK 3.3 billion with
a headcount of around 3,600. The new Group is active in the areas of product
develop¬ment and technical information and is one of the world's largest
suppliers of technical development services to the automotive indu¬stry, both
for cars and trucks. The acquisition of Caran also means supplying a greater
range of services to the engineering industry where we have become one of the
largest in Northern Europe.