Interim Report July – September 2014


July – September 2014

  · Sales amounted to SEK 287.4 million (249.3)
  · EBIT was SEK 12.3 million (8.6)
  · EBIT margin was 4.3% (3.4)
  · Net profit after tax for the period was SEK 9.1 million (4.8)
  · Earnings per share were SEK 0.05 (0.03)

January – September 2014

  · Sales amounted to SEK 908.8 million (881.8)
  · EBIT was SEK 42.1 million (38.1)
  · EBIT margin was 4.6% (4.3)
  · Net profit after tax for the period was SEK 30.2 million (25.2)
  · Earnings per share were SEK 0.17 (0.14)

Key events

  · Cybercom won business with Saab regarding development teams for Gripen E.
  · Cybercom signed a 2-year framework agreement with the Swedish Tax Agency,
the Swedish Enforcement Authority and the Swedish E-identification Board.
  · Cybercom will enhance the Swedish International Development Cooperation
Agency in the connected world through a 4-year agreement.
  · Cybercom assisted WyWallet with implementation so that e-retailers can offer
mobile payments.
  · Cybercom and Tele2 entered into a strategic partnership machine-to-machine
communications, M2M.
  · Cybercom was exclusively invited to the UN Climate Change Summit to discuss
innovative technology as a tool for a sustainable future.

Comments from the CEO

In the third quarter, we turned Cybercom towards good growth and also improved
our margin. We have bolstered our relationship with Autoliv in Linköping and we
developed an important application for the Swedish Film Institute, to make films
accessible to the visually impaired and to people with reading difficulties. We
also launched an important project with 4T's WyWallet. At the same time, we have
continued to grow in the public sector in Sweden through assignments with the
Swedish National Social Insurance Board, the Swedish Defence Materiel
Administration, the Swedish National Police Board, the Swedish International
Development Cooperation Agency and the Swedish Tax Agency. In addition, we have
reaped good results from our previous agreements in Finland, with intensive
project deliveries for the Finnish National Board of Education, and we have
expanded our business with Finnish MTV in Managed Services. We have experienced
excellent development for our businesses in Poland and Dubai, which made good
contributions in late summer. We have won business with our international
telecom clients, such as Cable and Wireless Communication, Ericsson and Unitel
Angola. We have also had success internationally with blueGO, our software for
wireless Bluetooth technology. This contributed to an increase in sales, which
during the quarter amounted to SEK 287.4 million (249.3), representing growth of
some 15% compared to the same period last year.

Our EBIT improved by 43% in the third quarter, and amounted to SEK 12.3 million
(8.6), giving a margin of 4.3% (3.4). This is a positive development, but we are
not yet satisfied. We can do better, and we continue to progressively execute on
our strategy and to enhance our efficiency. Net financial income is progressing
well, and we increased net profit after tax for the period to SEK 9.1 million
(4.8). We have a stable cash flow and a good equity/assets ratio. We recruited
113 talented new employees during the quarter, and the number of employees at
September 30 was 1,315 (1,243). The average number of employees has increased by
over 7% compared to the third quarter last year. At the same time, we are using
a larger proportion of consultants from our external network.

The Nordic market continues to give mixed signals. There are many interesting
ongoing business dialogues, while the turbulent macroeconomic situation is
dampening the business climate. We are noticing a clear level of caution among
our clients in manufacturing and in parts of the automotive industry. So far we
have navigated well in the Finnish market, but this is becoming increasingly
tough. In southern Sweden, the market is clearly influenced by the measures
communicated by Ericsson Modems and Sony Mobile, while we see many more long
-term opportunities in this change and in Ericsson's investments in radio
network R&D.

Our strength and our good references in Connectivity, the connected world,
position us as a preferred partner with many key clients who selectively choose
suppliers to ensure stronger and more sustainable development. We are being
invited to important conversations with new clients and in new contexts.

An example of this was when Cybercom was one of the companies chosen by the UN
to represent the new, innovative technology and expertise necessary to enable
sustainable development in the world. In September, we participated in the UN
Climate Summit in New York, which aimed to mobilise action on climate change and
raise aspirations in the ongoing climate negotiations. UN Secretary-General Ban
Ki-moon invited heads of state, heads of government and representatives from
business and finance. This is a valuable ongoing dialogue.

We look forward with confidence, well aware that we are affected by short-term
challenges in the market and by the prevailing economic conditions. We continue
to execute on our planned strategy and with a stronger position in Connectivity.
Step by step we are achieving sustainable improvements to meet our long-term
financial goals and to create enhanced value for our shareholders.

Niklas Flyborg
President and CEO
For additional information, please contact:
Niklas Flyborg, President and CEO +46 70 594 96 78
Camilla Öberg, CFO +46 73 398 50 01
Kristina Cato, Communications Director and IR Manager +46 70 864 47 02

To hear a presentation of this report at 10.30 today, please call +46 8 465 013
85 using conference ID: 8046784
Cybercom is an IT consulting company that assists leading companies and
organisations to benefit from the opportunities of the connected world. The
company’s areas of expertise span the entire ecosystem of communications
services. Cybercom’s domestic market is the Nordic region, and in addition the
company offers global delivery capacity for local and international business.
Cybercom was founded in 1995 and has been quoted on the NASDAQ OMX Stockholm
exchange since 1999.

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