Sectra’s nine-month interim report for the May 2015 to January 2016 period: Positive earnings trend and top global ranking in customer satisfaction

Linköping, Sweden, March 8, 2016 – The IT and medical technology company
Sectra (http://www.sectra.com) (STO: SECT B) reported increased operating profit
and strong cash flow for the third quarter of the 2015/2016 fiscal year. For the
third consecutive year, the company had the most satisfied customers among users
of IT systems for managing and archiving radiology images (PACS), according to
the important customer satisfaction survey in the medical technology industry.
Customer confidence is a key success factor for Sectra, which aims to achieve
secure, long-term profit growth. Sectra’s earnings, calculated as operating
profit per share, have climbed more than 60% over the past five years.
Nine-month period in figures

  · The Sectra Group’s order bookings amounted to SEK 874.2 million (1,181.8).
Order bookings continued to exceed net sales.
  · Net sales totaled SEK 758.4 million (693.1), up 9.4%. Excluding the
nonrecurring item of SEK 16.3 million for the sale of patents in the comparative
period, net sales increased 12.1%.
  · Operating profit totaled SEK 107.5 million (107.9), corresponding to an
operating margin of 14.2% (15.6). Excluding the nonrecurring item in the
comparative period, operating profit rose 17.4%.
  · Cash flow after changes in working capital increased to SEK 123.8 million
(32.1). Several of the orders that Sectra received for medical IT systems in the
preceding fiscal year have reached the operational phase. This means that
invoicing to end customers has begun, which is having a positive impact on the
Group’s sales, earnings and cash flow.

Third quarter in figures

  · Order bookings amounted to SEK 369.0 million (549.4).
  · Net sales totaled SEK 268.9 million (241.6), up 11.3%.
  · Operating profit increased 37.9% to SEK 44.0 million (31.9), corresponding
to an operating margin of 16.4% (13.2).
  · Cash flow after changes in working capital amounted to SEK 65.3 million
(neg: 23.6).

Torbjörn Kronander, President and CEO of Sectra AB, comments

“For the third consecutive year, Sectra topped its segment in the industry’s
most important customer satisfaction survey for IT systems in healthcare. The
survey was performed by the analyst company KLAS, and our system for managing
medical images, Sectra PACS, was ranked highest in Europe, the US and globally.
Sectra was awarded top ratings for the stability and ease-of-use of its system,
as well as for its employees, proactive service, high-quality implementation and
training. This ranking in the KLAS survey shows that customers have a high level
of confidence in Sectra and our ability to help them deliver efficient
healthcare of the highest quality."

“Order bookings are significantly higher than our net sales, which bodes well
for the future since many orders are spread over a long period, and we are
growing in all areas. Although we are making progress in all areas, I must
emphasize that it is unsatisfactory that we have not succeeded in reversing the
earnings trend in Secure Communications. Our ongoing efforts to boost our
international sales and broaden the business area’s offering to include new
customer segments had a negative impact on profit for the period and were not
sufficient to entirely compensate for our declining sales to our principal
customer in Sweden. In the long term, these efforts are expected to restore our
margins and growth to an acceptable level.”

For further CEO comments and information, see the attached interim report.

Presentation of the interim report

Sectra will present its interim report during a teleconference with President
Torbjörn Kronander and CFO Simo Pykälistö. The presentation will be held in
English.

Time: March 8, 2016, at 10:00 a.m. (CET)

To participate, call:

  · SE: +46 85 664 2690
  · UK: +44 20 3008 9801
  · US: +1 646 722 4897

or follow online via: www.sectra.com/ir20160308

A recorded version will be available on Sectra’s website after the conference:
www.sectra.se/irwebcast.

The information in this report is such that Sectra AB (publ) is obligated to
disclose in compliance with the Securities Market Act and/or the Financial
Instruments Trading Act. The information was submitted to the media for
publication on March 8, 2016, at 08:00 a.m. (CET).
For further information, please contact:
Dr. Torbjörn Kronander, CEO and President Sectra AB, +46 (0) 705 23 52 27
Pictures: http://flickr.com/photos/sectramedicalsystems
About Sectra

The world needs more efficient healthcare and more secure communication. Sectra
plays a key role in meeting these needs. Sectra assists hospitals throughout the
world to enhance the efficiency of care, and authorities and defense forces in
Europe to protect society’s most sensitive information. The company was founded
in 1978, has its head office in Linköping, Sweden, with subsidiaries in
14 countries, and operates through partners worldwide. Sales in the 2014/2015
fiscal year totaled SEK 961 million. The Sectra share is quoted on the Nasdaq
Stockholm exchange. For more information, visit www.sectra.com.