INTERIM REPORT

INTERIM REPORT

JANUARY 1 -MARCH 31, 2011

  

  · Net sales SEK 398 m (360)
  · Operating profit SEK 34 m (19)
  · Operating margin 8.4 % (5.4 %)
  · Profit after tax SEK 23 m (15)
  · Earnings per share after dilution SEK 0.30 (0.20)
  · Cash and cash equivalents SEK 138 m (119)

Statement by Carl-Magnus Månsson, CEO

During the first quarter of the year, Acando's operations reported a
healthy trend which was supported by an increasingly strengthened market
and continued operational efficiency measures. Organic growth measured
in local currencies amounted to approximately 15 percent, though
negative currency effects of about 4 percentage points arose from the
strengthened SEK. A rising degree of utilization and a favorable mix of
services in deliveries resulted in substantial improvement in the
operating profit to SEK 34 m from SEK 19 m in the year-earlier period.
Operating margins are in line with the corresponding period during the
robust economic climate of 2008 in all countries excluding Denmark.

The development in Norway, with strong growth in sales and the highest
margins in one quarter for two years, is particularly gratifying.
However, in respect of profitability, Denmark continues to pose a
challenge.

Demand strengthened considerably for Microsoft solutions based on
Sharepoint and SAP competence for implementation projects and further
development of existing solutions, during the quarter. Additionally, we
have been able to utilize competence and solutions between Group
countries in these areas.

It is with great pleasure and pride that I report that the Nobel
Foundation chose Acando as their partner for the establishment of more
efficient IT support for the planning of the Nobel Prize Award Ceremony,
the Nobel Banquet in Stockholm and the other activities of Nobel Week.
Our methodology of working together with our customers to identify and
understand their needs, to then define the solution and build confidence
and security during the implementation process has proved decisive.

Interesting and challenging assignments are crucial for attracting the
best consultants and the project for the Nobel Foundation is one of many
such examples. We have a pressing need to increase recruitment levels
but have noted increasing levels of competition for new employees. The
high level of demand means a general increase in mobility amongst
employees thus affecting opportunities for organic growth. We continue
to operate a trainee program and focus on recruiting young professionals
to our academies in the competence areas of Microsoft and Strategic IT.
At the same time, we are increasing volumes in our subcontractor
business.

For further information, please contact:
Carl-Magnus Månsson, President and CEO
+46 8 699 73 77

Lotta Jarleryd, CFO
+46 8 699 74 14