Continued sales and profit growth

Continued sales and profit growth

We have seen greater demand for our services compared with 2010, which
has meant increased sales and improved results for the first half of the
year. Saab Automobile's financial problems have meant that results were
negatively affected by SEK 31 million, mainly for reserves of
outstanding accounts receivable. The sound market situation means that
we now have a major need to recruit on all markets. The outlook for 2011
is positive and we expect to see continued profit improvements.  Kjell
Nilsson, President & CEO

Q2
• The operating income was SEK 609 million (516) and organic growth was
22%
• The operating loss was SEK 12 million (-25) giving an operating margin
of -2.0% (-4.8)
• Results were negatively affected by reserves of a one-off nature of
SEK 31 million (-8)
• The loss after tax was SEK 10 million (-19)
• Earnings per share after dilution was SEK -0.58 (-1.07)

January-June

• The operating income was SEK 1,205 million (1,037) and organic growth
was 21%
• The operating profit was SEK 30 million (-29) giving an operating
margin of 2.5% (-2.8)
• Results were negatively affected by reserves of a one-off nature of
SEK 31 million (-8)
• The profit after tax was SEK 18 million (-24)
• Earnings per share after dilution was SEK 0.97 (-1.33)
• The equity/assets ratio was 33% (31) 

Income and result
Q2
Operating income rose by SEK 93 million compared to last year and
amounted to SEK 609 million (516). Sales in local currencies rose by
22%. The sales growth is a result of the better state of the market and
has led to a higher utilization rate in all business areas. The number
of employees has meanwhile risen by 251, compared with Q2 2010. In
relation to the first quarter Q2 had four fewer working days, which
affects income and results.

The operating profit improved by SEK 13 million and amounted to SEK -12
million (-25), giving an operating margin of -2.0% (-4.8). Although
there is still a high degree of uncertainty surrounding Saab
Automobile's solvency a reserve has been made of SEK 31 million, mainly
for outstanding accounts receivable. Because of this reserve there is no
outstanding exposure towards Saab Automobile. The same quarter last year
was hit by one-off costs of SEK 8 million. The operating profit,
excluding these items, was SEK 19 million (-17) with an operating margin
of 3.1% (-3.2).

Net financial items amounted to SEK -3 million (-2) giving a loss before
tax of SEK 15 million (-27). Tax revenues for the quarter amounted to
SEK 4 million (8). The loss after tax was SEK 10 million (-19) and the
earnings per share after dilution was SEK -0.58 (-1.07).

January-June

The operating income rose during the period by SEK 168 million compared
to last year and amounted to SEK 1,205 million (1,037). Sales in local
currencies rose by 21%. The sales growth is mainly the result of the
better market situation compared to the same period last year.

The operating profit improved by SEK 59 million and amounted to SEK 30
million (-29) giving an operating margin of 2.5% (-2.8). Results were
hit by one-off costs of SEK 31 million (-8). The operating profit,
excluding theses items, was SEK 61 million (-21) with an operating
margin of 5.0% (-2.0).

The business areas show the following operating margins, excluding
one-off costs: Automotive R&D 1.3% (-8.0), Design & Development 8.7%
(2.8) and Informatic 10.3 % (6.5).

Net financial items amounted to SEK -6 million (-4) giving a profit
before tax of SEK 24 million (-33). Tax costs for the year stood at SEK
7 million (9). The profit after tax was SEK 18 million (-24) and the
earnings per share after dilution was SEK 0.97 (-1.33).

Financial position

The operating cash flow from current activities was SEK 8 million (-67).
The Group's cash and bank balances amounted to SEK 33 million (33) with
additional non-utilized credit of SEK 140 million as at 30 June. A new
credit agreement was signed at the beginning of Q3. The new credit
agreement consists of an overdraft facility of SEK 150 million (100) and
a revolving credit facility of EUR 32.8 million (32.8), which runs until
July 2012. There is an option available for the company, before the due
date, to extend the revolving credit to a three-year loan.

Investments in hardware, licenses, office supplies and equipment,
amounted to SEK 9 million (8). Shareholders' equity amounted to SEK 390
million (359) and the equity/assets ratio was 33% (31). The Group's net
debt was SEK 313 million (332) and the debt/equity ratio was 0.8 times
(0.9).

Staff and organization

The headcount on 30 June was 2,837 (2,586), of whom 1,489 (1,427) in
Sweden and 1,348 (1,159) abroad. The number of employees in active
service was 2,719 (2,438). Compared with year-end 2010 (31 Dec) the
number of employees has risen by 134, of whom 57 in Sweden and 77
abroad. In the respective business areas the number of employees is as
follows: Automotive R&D 1,625 (1,463), Design & Development 793 (760)
and Informatic 419 (363).

Outlook

We have seen a clear improvement in the market situation since the
second half of 2010. The good market situation means that we have a
major need to recruit on all markets. Our outlook for 2011 is positive
and we expect to continue seeing profit improvements.

Kjell Nilsson, CEO Semcon AB, 46-31-721 03 11
Björn Strömberg, CFO Semcon AB, 46-708-35 44 80
Anders Atterling, IR manager Semcon AB, 46-704-47 28 19