Interim report January-March 2016

The first quarter was slightly weaker compared with the same period last year,
partly due to one fewer working day, representing around SEK 10 million in lower
income. The Engineering Services Nordic business area was also affected by a
drop in demand from the energy sector, mainly in Norway. The automotive industry
however is continuing to develop positively in Sweden, with an increase in
requests for project-based deliveries. The Engineering Services Germany business
area is undergoing a process of change, which was started last year, with the
prerequisite for gradually improving results. Income from the Product
Information business area was lower in Q1 compared with the same period last
year. The reason for this is mainly due to fewer deliveries to Jaguar Land
Rover, which we reported about in Q4 2015. It is therefore very pleasing that we
after the end of Q1 have signed new partnership agreements with two automotive
manufacturers in Sweden and the UK. The projects will be delivered by our global
teams and initially involve 65 employees. Our international presence is
something that potential employees are attracted by. This is shown, not least,
by Universum’s annual survey among 24,000 engineering students in Sweden. Semcon
was nominated as the “Rocket of the Year” with an improvement of more than 30
places on the list of attractive employees.
• The operating income was SEK 666 million (677) and the organic growth was - 2%
• The operating profit was SEK 23 million (34), giving an operating margin of
3.5% (5.1)
• The profit after tax was SEK 17 million (25)
• Earnings per share after dilution was SEK 0.92 (1.36)
• The equity/assets ratio was 49% (50)

Income and result
The operating income amounted to SEK 666 million (677). Adjusted for currency
effects, acquisitions and divestments, income fell by 2%. The quarter had one
fewer working day compared with last year, which meant around SEK 10 million in
lower income. The operating profit was SEK 23 million (34), giving an operating
margin of 3.5% (5.1). Both the Engineering Services Nordic and Engineering
Services Germany business areas reported a drop in operating profit compared
with last year. One fewer working day negatively affected the Group’s operating
profit by around SEK 8 million. The Product Information business area’s
operating profit is in line with last year, but profit was positively affected
by recovered write-downs of accounts receivable of SEK 5 million. Net financial
items amounted to SEK -1 million (-1), giving a profit before tax of SEK 22
million (33). The tax cost amounted to SEK -5 million (-9). The profit after tax
was SEK 17 million (25) and EPS after dilution was SEK 0.92 (1.36).

Financial position
The operating cash flow from current activities was SEK -16 million (-52). Cash
flow is seasonally weak in Q1. Investments in hardware, licenses, office
supplies and equipment amounted to SEK 22 million (16). The Group’s liquid
assets amounted to SEK 44 million (93) with additional non-utilised credit of
SEK 271 million (263) as of 31 March. Shareholders’ equity amounted to SEK 619
million (687) and the equity/assets ratio was 49% (50). The Group’s net debt
amounted to SEK 119 million (76). Excluding pension commitments, net debt
amounted to SEK 49 million (9). The debt/equity ratio was 0.2 times (0.1).

Staff
The headcount on 31 March was 2,901 (2,935) and the number of employees in
active service was 2,775 (2,822).Downsizing of business activities over the past
year, mainly in Engineering Services Germany, have resulted in a fall in the
number of employees. In the respective business areas the headcount is as
follows: Engineering Services Nordic 1,079 (1,017), Engineering Services Germany
914 (1,012), Engineering Services International 354 (344) och Product
Information 554 (562).
For more information, contact
Björn Strömberg, CFO Semcon AB, +46 31-721 03 06
Per Nilsson, Communications Director Semcon AB, +46 73-973 72 00