Interim report for the period January - March 2001

Interim report for the period January - March 2001 Continued strong development for Dimension · Net sales rose by 55 percent to SEK 397.8 million (257.3). · Profit after financial items rose by 48 percent to SEK 28.2 million (19.0). · The operating margin for the period was 7.6 percent (7.4). · Profit per share amounted to SEK 0.73 (0.54). · Continued geographic expansion through new operations in Denmark, Finland and Lithuania and acquisition in Latvia. · Important orders secured from UPC Sverige, FöreningsSparbanken and Telenor, among others. · Next Nordic signed a three-year agreement as an OEM supplier to Ericsson Radio Systems. · On February 20 the Dimension share was listed on the Stockholm Exchange's O-list. The offer was subscribed 11 times. · Following the conclusion of the period: · The System Management business area was created to strengthen offerings in monitoring systems for infrastructure solutions About Dimension Dimension is an IT integrator specializing in business-critical systems that form the infrastructure of the digital economy. Examples include advanced server and data storage solutions for e-commerce and Internet banking systems, Internet/intranets and business systems. Clients are primarily in telecommunications, banking & finance, media and manufacturing industry. Dimension cooperates with market-leading suppliers in all its operating areas. For example, it has established extensive, long-term relationships with Sun, Veritas, Compaq Computer, Hitachi Data Systems and WebMethods. The wholly owned Group subsidiary Next Nordic works with the sale of Sun systems and related products to resellers and integrators and is Sun Microsystems' largest partner in the Nordic region. Dimension's objective is to become the leading supplier in the Nordic and Baltic regions of business-critical systems and integrated solutions for the digital economy. Over the past ten-year period the Group has grown organically by an average of 71 percent a year, with operating margins of 8-10 percent. In 2000 Dimension had sales of SEK 1,475 million and profit after financial items of SEK 138 million. The Group has around 270 employees and is active in Sweden, Norway, Denmark, Finland, Latvia and Lithuania. Market Dimension's clients are primarily in high technology and fast-growing areas such as telecommunications, banking & finance, media and manufacturing industry. All the company's priority market segments continued to develop positively during the period. Competition in the market is considered to have increased slightly, however. Demand during the period was especially strong in the banking & finance sector. Uncertainty in the telecom market has affected Dimension to only a limited extent. The reason is that the company focuses on business- critical systems, and corporate investments in these systems tend to be less affected by cutbacks. During the period a number of important contracts were signed, including with UPC Sweden, FöreningsSparbanken and Telenor. Sales and profit Dimension's positive development, with strong organic growth and rising profit, continued during the first quarter of 2001. Net sales rose by 55 percent to SEK 397.8 million (257.3). Profit after financial items rose by 48 percent to SEK 28.2 million (19.0). The operating margin for the period was 7.6 percent (7.4). Operations All operating areas reported good growth and profit. Among other things, Dimension supplied a large number of solutions to the banking and financial sector. During the period it opened its seventh Swedish office, in Växjö. Continued international expansion During the period the Dimension Group continued its geographic expansion and established operations in Denmark, Finland, Lithuania and Latvia. As an extension of their multi-year cooperation, Dimension and Lithuania- based CompServis established CompServis Open Systems in late February. Dimension owns 51 percent of the new company, which has six employees and specializes in infrastructure solutions primarily for the banking & finance and telecom sectors. In late March Dimension acquired 70 percent of the Latvian company Realogic, which had a turnover in 2000 of approximately SEK 10 million, with a profit after financial items of approximately SEK 3 million. The company has six employees and its clients include several of Latvia's largest banks and telecom companies. In connection with the acquisition, the company changed its name to Dimension Latvia. The subsidiary Next Nordic started operations in Denmark and Finland during the period. Following the conclusion of the report period To strengthen its offerings in systems for monitoring infrastructure solutions, Dimension established a new business area, System Management, in April 2001. The business area offers consulting services and products that increase the availability of business-critical systems. Within this area Dimension cooperates with BMC Software and Twobyfour Software, among others. System Management is starting off with projects from OM, Telia and Expressen. Next Nordic AB Next Nordic specializes in providing resellers and integrators of Sun products with hardware, software, accessories, service and training. During the period the company continued its positive development and strongly contributed to the Group's profit. Next Nordic plays an important role in the Group's strategy of geographic expansion, in line with which operations were established during the period in Finland (Helsinki) and Denmark (Copenhagen). During the period the company also signed a three- year agreement as a primary OEM supplier to Ericsson Radio Systems, with an annual contract value of SEK 300 million. As an OEM supplier, Next Nordic will provide server solutions and related services for Ericsson's service platforms for mobile networks, where the end customers are mobile network providers and telecom operators around the world. The Dimension Group was already a supplier to Ericsson Radio Systems, and the three-year agreement strengthens and enhances this cooperation. Net investments The Group's net investments in fixed assets amounted to SEK 4.2 million (1.0) during the period and related primarily to computers and equipment. Financial position and profitability The Group's liquid assets amounted to SEK 153.6 million (43.5) at the end of the period. Consolidated shareholders' equity amounted to SEK 419.0 million (145.2) as of March 31, 2001. During the report period shareholders' equity rose by SEK 203.3 million, of which profit for the period accounted for SEK 19.8 million and the proceeds of the new share issue for SEK 183.8 million. The equity/assets ratio was 42.3 percent (34.7). The Group's financial position has been only marginally affected by the new companies established in the Baltic region. The return on equity amounted to 25.0 percent (39.5) during the period, while the return on operational capital was 51.4 percent (69.8). Cash flow Cash flow from operating activities before the change in working capital amounted to SEK 29.8 million (20.1) during the period, or SEK 1.11 (0.79) per share. Cash flow from operating activities before tax amounted to SEK -23.7 million (5.7). The change is primarily due to a sales increase, which has resulted in higher accounts receivable, inventories and accounts payable. Personnel The average number of Group employees, excluding employees in the Baltic operations established during the period, was 241, compared with 147 during the corresponding period of 2000. The establishment of CompServis Open Systems in Lithuania and acquisition of Realogic in Latvia added 12 employees to the Group. The number of Group employees at the end of the period was 268 (155). The Dimension share On February 20 the Dimension share was listed on the Stockholm Exchange's O-list. In connection with the listing, institutional investors and the Swedish public were offered the opportunity to acquire shares in the company. The offer consisted in part of a new share issue and in part of the sale of portions of the holdings of the principal shareholder, Bure Equity AB, and the company's founders, Leif Svensson and Per Westerlund. The issue of 3,500,000 new shares generated proceeds of SEK 214 million before issue expenses. Interest in the shares was very high and the offer was subscribed 11 times. The price per share was set at SEK 61. Following the new issue, the number of shares amounted to 28,847,200. In connection with the initial public offering, employees of the Dimension Group who had not previously had the opportunity to acquire options in Dimension were able to acquire options from the existing program on market terms. These employees acquired 48,000 options. The number of shares as of March 31, 2000, taking into account the dilution effect1, is estimated at 30,004,333. Profit per share after full dilution amounted to SEK 0.71 during the period. Equity per share after full dilution was SEK 14.20. 1 The dilution effect is calculated in accordance with the Swedish Financial Accounting Standards Council's recommendation RR 20 on profit/loss per share. Parent Company Parent Company sales amounted to SEK 209.9 million (225.6) during the year. Profit after financial items amounted to SEK 11.0 million (16.9). The decrease is primarily due to transfer of the Group's OEM operations from the Parent Company to Next Nordic and the expansion in new service areas. Liquid assets totaled SEK 59.0 million (29.0) at the end of the period. Net investments in fixed assets amounted to SEK 3.1 million (1.2). Outlook for full-year 2001 Dimension's objective in 2001 is to grow organically by 40-50 percent, with an operating margin of 7-9 percent. The objective is based on anticipated market growth of approximately 30 percent. Development during the period is estimated to have been in line with this figure. Against the background of the economic slowdown that distinguished the first three months of the year, it is important to be observant of future changes in the market, however. Financial information schedule The interim report for January-June 2001 will be released on August 21, 2001 The interim report for January-September 2001 will be released on October 24, 2001 The year-end report for 2001 will be released on February 19, 2002 Financial reports are also published online at www.dimension.se Stockholm, April 23, 2001 Sven Uthorn Managing Director Dimension AB (publ) For further information, please contact Sven Uthorn, Managing Director, telephone: + 46 8 445 24 32, +46 70 931 00 03, e-mail: sven.uthorn@dimension.se Accounting principles and supplementary disclosures The interim report has been prepared in accordance with the Swedish Financial Accounting Standards Council's recommendation RR 20 on interim reporting. A number of accounting recommendations from the Council took effect on January 1, 2001. The application of these recommendations has not necessitated the restatement of reported profit or shareholders' equity. In applying RR 9 on income taxes, no value was again assigned to tax loss carry forwards in Group companies. The carry forwards amount to approximately SEK 5 million. The following recommendations have not yet been applied: RR:1 00, RR 15, RR 16, RR 17, RR 19. This report has not been reviewed by the company's auditors. Key ratios Jan-Mar Jan-Mar Jan-Dec Dimension Group 2001 2000 2000 Net sales (SEK million) 397.8 257.3 1,474.7 Sales growth (%) 54.6 94.9 91.6 Profit after financial items (SEK 28.2 19.0 138.1 million) Gross margin (%) 8.0 7.4 9.6 Operating margin (%) 7.6 7.4 9.3 Profit margin (%) 7.1 7.4 9.4 Return on capital employed (%) 35.4 50.9 69.7 Return on operational capital (%) 51.4 69.8 92.8 Return on equity (%) 25.0 39.5 56.6 Total assets (SEK million) 990.4 418.7 888.0 Shareholders' equity (SEK million) 419.0 145.2 215.7 Equity/assets ratio (%) 42.3 34.7 24.3 Interest-bearing liabilities (SEK 7.9 7.0 41.9 million) Net investments (SEK million) 4.2 1.0 7.4 Number of employees at end of period 268 155 218 Average number of employees 241 147 179 Net sales per employee (SEK million) 1.7 1.8 8.3 Operating profit per employee (SEK 0.1 0.1 0.8 million) Quarterly data Dimension Group Quarter 1 Quarter Quarter Quarter 2 3 4 Net sales (SEK million) 2001 397.8 2000 257.3 412.4 291.2 513.8 1999 132.0 202.2 159.7 275.8 Profit after financial items (SEK million) 2001 28.2 2000 19.0 31.5 27.3 60.3 1999 11.8 21.8 9.3 33.1 Operating margin (%) 2001 7.6 2000 7.4 7.7 9.3 11.7 1999 9.1 10.5 5.3 12.0 Dimension's sales fluctuate by season. As a result, it normally reports a weaker first and third quarter and a stronger second and fourth quarter. Condensed consolidated Apr-Mar Jan-Dec income statement (SEK million) Jan-Mar Jan-Mar 2000/01 2000 2001 2000 12 mos. 12 mos. Net sales 397.8 257.3 1,615.2 1,474.7 Goods for resale -281.3 -197.0 -1,179.6 -1,095.4 Other external expenses -41.4 -15.8 -121.2 -95.5 Staff costs -43.2 -25.3 -159.5 -141.6 Depreciation/amortization of tangible and intangible fixed assets -1.7 -1.2 -5.6 -5.1 Operating profit 30.3 18.0 149.3 137.1 Financial items -2.1 1.0 -2.0 1.0 Profit after financial 28.2 19.0 147.3 138.1 items Tax -8.3 -5.3 -42.8 -39.8 Net profit 19.8 13.7 104.5 98.3 Share data Jan-Dec Jan-Mar Jan-Mar 2000 2001 2000 12 mos. Number of shares after full 30,004,333 26,147,2 26,469,6 dilution 00 94 Average number of shares after full dilution 28,098,777 26,147,2 26,308,4 00 47 Profit per share after full 0.71 0.53 3.72 dilution (SEK) Equity per share after full 14.20 5.82 8.41 dilution (SEK) Number of shares before 28,847,200 25,347,2 25,347,2 dilution 00 00 Average number of shares 26,941,644 25,347,2 25,347,2 before dilution 00 00 Profit per share before 0.73 0.54 3.88 dilution (SEK) Equity per share before 14.52 5.73 8.51 dilution (SEK) Condensed consolidated March 31 March 31 Dec 31 balance sheet (SEK million) 2001 2000 2000 Assets Fixed assets 16.5 10.0 14.3 Inventories 389.0 168.4 365.0 Other current assets 431.3 196.8 448.8 Liquid assets 153.6 43.5 59.9 Total assets 990.4 418.7 888.0 Equity and liabilities Shareholders' equity 399.2 131.5 117.4 Profit for the period 19.8 13.7 98.3 Interest-bearing 7.9 7.0 41.9 liabilities Non-interest-bearing 563.5 266.5 630.4 liabilities and provisions Total equity and 990.4 418.7 888.0 liabilities Change in shareholders' equity (SEK March 31 March 31 Dec 31 million) 2001 2000 2000 Opening balance 215.7 131.5 131.5 Dividend - - -20.0 Options issued - - 6.0 New share issue after deduction of 183.8 - - issue expenses Translation difference -0.3 - -0.1 Net profit for the year 19.8 13.7 98.3 Closing balance 419.0 145.2 215.7 Condensed consolidated statement of Jan-Mar Jan-Mar Jan-Dec cash flows (SEK million) 2001 2000 2000 Cash flow before changes in working 29.8 20.1 143.2 capital Changes in working capital -53.5 -14.4 -115.5 Cash flow from operating activities -23.7 5.7 27.7 before tax Tax -28.2 -2.2 -20.3 Cash flow from operating activities -51.9 3.5 7.4 after tax Cash flow from investing activities -4.2 -1.0 -9.3 Cash flow from financing activities 149.8 -9.1 11.7 Change in liquid assets 93.7 -6.6 9.8 Liquid assets at beginning of period 59.9 50.1 50.1 Liquid assets at end of period 153.6 43.5 59.9 Definitions of key ratios Sales growth Increase in net sales as a percentage of net sales in the corresponding period of the previous year. Gross margin Operating profit before depreciation/amortization in relation to sales. Operating margin Operating profit before goodwill amortization in relation to sales. Profit margin Profit after financial items in relation to sales. Capital employed Total assets less non-interest-bearing liabilities and provisions, including deferred tax liabilities. Return on capital employed Profit after financial items plus financial expenses in relation to average capital employed. Operational capital Capital employed less liquid assets. Return on operational capital Profit before financial items in relation to average operational capital. Return on equity Net profit in relation to average shareholders' equity. Equity/assets ratio Shareholders' equity in relation to total assets. Sales per employee Net sales in relation to the average number of employees. Operating profit per employee Operating profit in relation to the average number of employees. Average number of shares after full dilution Number of shares at beginning of period plus number of shares at end of period, adjusted for splits, bonus issues and full dilution, divided by two. Profit per share Profit after tax in relation to the average number of shares. Equity per share Shareholders' equity in relation to the number of shares at year-end. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/04/23/20010423BIT00380/bit0001.doc http://www.bit.se/bitonline/2001/04/23/20010423BIT00380/bit0001.pdf

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