New growth goal for Sectra

The Board of Directors of the IT and medical technology company Sectra (STO:
SECT B) has set a new growth goal for the company. This is a consequence of
Sectra being active in markets that are changing rapidly, where the nature of
deliveries is being changed and streamlined.
The decision by the Board implies that Sectra is continuing to prioritize
increased profit, but is also clarifying that profit growth is more important
for the company than growth in sales. The Board has also placed the company’s
goals in order of priority. Following revision, the financial goals are (in
order of priority):

1.   Stability: The equity/assets ratio must be a minimum of 30% (unchanged)

2.   Profitability: The operating margin (EBIT margin) must be a minimum of 15%
(unchanged)

3.   Growth: The operating profit (EBIT) per share must increase, on average,
10% per year over a five-year period (changed growth goal, the previous goal was
that Sectra’s sales should increase, on average, by a minimum of 15% over a
seven-year period)

When calculating the growth goal, adjustments are made for any changes in the
number of shares outstanding due to the cancellation of treasury shares or for
bonus issues.

Trend broken

For the last five-year period, Sectra posted a negative average annual growth in
EBIT per share. However, the negative trend was broken in the last two years.

“Sectra’s annual growth in EBIT per share in the past two years has been more
than 8%, which is a result of our long-term effort to increase cost-efficiency
and at the same time increase the number of products with a higher margin, such
as software licenses,” says Torbjörn Kronander, President and CEO of Sectra AB.

Focused expansion

Medical systems and secure communication are niche markets with large and
increasing customer requirements. Sectra’s primary growth strategy is to expand
in markets in which the company is already present and through partners in
carefully selected emerging markets.

“We will achieve our financial goals through streamlined sales of products and
services by which we provide unique values to our customers. We will also
develop our offering to Sectra’s large customer base and continue our efforts,
with retained or further enhanced quality, to optimize the resources used to
deliver and support our systems,” says Torbjörn Kronander.

For further information on the reasons for the revision of Sectra’s financial
goals, refer to Sectra’s 2012/2013 Year-end
Report (http://www.sectra.com/press_releases/en/financial/2013/), which will be
published at 08:00 a.m. today.

The information in this press release is such that Sectra AB (publ) is obligated
to disclose in compliance with the Swedish Securities and Clearing Operations
Act. The information was submitted for publication on May 28, 2013, at 07:55
a.m. (CET).
For further information
Torbjörn Kronander, President and CEO of Sectra AB, Tel: +46 (0)13-23 52 27
About the Sectra Group

Sectra conducts successful development and sales of high technology products and
services in the niche segments of medical IT and secure communication. The
company was founded in 1978 and grew from research carried out at Linköping
University. Sectra has offices in twelve countries and sells its products
through partners worldwide. Sectra is listed on NASDAQ OMX Stockholm AB
exchange. For more information about Sectra, visit our website at:
www.sectra.com.