Interim Report 1 January - 31 March 2002

BTS Group AB (publ) Interim Report 1 January-31 March 2002 Net turnover during the first quarter fell by 18 per cent to MSEK 32.2 (39.4) The operating result amounted to MSEK -10.6 (-6.5) Result before tax amounted to MSEK -10.2 (-6.9) Earnings per share for the period totalled SEK -1.18 (-1.10) On a rolling twelve-month basis; net turnover totalled MSEK 189.8 (194.5) operating result amounted to MSEK 8.5 (17.6) operating margin was 4 per cent (9) The company acquired a good number of new customers, including NCR, Eaton Corporation, Labatt, Goodman Fielder, If, ISS, Metso and Posten Norge. BTS Australia was established. The company has a good customer base and expects to generate positive result before tax during the year. BTS Group AB is an international consultancy and training company in the field of business acumen. BTS uses tailor-made business simulations to support company managers in implementing change and improving profitability. BTS solutions and services train the entire organisation to analyse and to take decisions centred on the factors that promote growth and profitability. This generates increased emphasis on profitability and market focus, and supports day-to-day decision-making, which in turn leads to tangible, sustainable improvements in profits. BTS customers are often leading major companies. Turnover BTS' net turnover during the first three months fell by 18 per cent to MSEK 32.2 (39.4). On a rolling twelve-month basis, net turnover totalled MSEK 189.8 (194.5). [REMOVED GRAPHICS] [REMOVED GRAPHICS] [REMOVED GRAPHICS] During the first quarter the share of licence revenues and customer- adapted development has reduced due to prolonged purchasing processes from customers regarding major purchases. Results The Group's result before tax for the first three months amounted to MSEK -10.2 (-6.9), and operating result totalled MSEK -10.6 (-6.5). The operating margin during the first quarter amounted to -33 per cent (- 16). On a rolling twelve-month basis, operating result totalled MSEK 8.5 (17.6), with the operating margin for the same period amounting to 4 per cent (9). The seasonal fluctuations that affect BTS' operations negatively influenced results for the first quarter. Market conditions remain poor and hard to predict, which has reinforced this pattern in 2002. New customers and market development During the first quarter, a good number of new customers were acquired, including NCR, Eaton Corporation, Labatt, Goodman Fielder, If, ISS, Metso and Posten Norge. The waiting market conditions, which were accentuated in the fourth quarter of 2001, continued during the first quarter of 2002. Companies continue to be restrictive to make investments in training. BTS has succeeded in extending its customer base during the period, but prolonged purchasing processes and decisions from customers to postpone projects have resulted in a fall in income per customer as compared to the corresponding quarter of 2001. However, order inflow developed positively in March and after the end of the quarter. Operating units Net turnover per operating unit 2001/02 Jan-Mar rolling 2001 MSEK 2002 (2001) 12 month Full year BTS USA 19.4 (23.3) 123.6 127.5 BTS Nordic 8.7 (13.4) 45.3 50.0 BTS UK 4.1 (2.7) 20.9 19.4 Total 32.2 (39.4) 189.8 196.9 Operating result per operating unit 2001/02 Jan-Mar rolling 2001 MSEK 2002 (2001) 12 month Full year BTS USA -7.4 (-3.8) 9.8 13.2 BTS Nordic -1.9 (-0.4) -3.7 -2.0 BTS UK -1.3 (-2.3) 2.4 1.4 Total -10.6 (-6.5) 8.5 12.6 BTS USA BTS USA's net turnover during the first three months fell by 17 per cent, compared with the same period in 2001, totalling MSEK 19.4 (23.3). The operating margin was -38 per cent (-16). Adjusted for the effects of currency exchange rates, turnover for the first three months fell by 22 per cent. During the quarter, BTS continued to make progress as regards new customers. Income per customer fell as a result of the reasons mentioned above. BTS Nordic BTS Nordic's net turnover during the first three months totalled MSEK 8.7 (13.4), and the operating margin was -22 per cent (-3). During the first quarter, changes in sales activities, staff cutbacks and other measures aimed at increasing efficiency have been implemented. The influx of new customers during the quarter was good. BTS UK During the first three months, BTS UK generated turnover of MSEK 4.1 (2.7). The operating margin was -32 per cent (-85). Adjusted for the effects of currency exchange rates, turnover for the first three months increased by 51 per cent. This growth is attributable to sales initiatives in 2001 aimed at new sectors such as banking and the retail industry, and to the establishment of BTS Australia. Financial position BTS' cash flow from current operations for the first three months amounted to MSEK -11.2, compared to MSEK -10.9 for the corresponding period in 2001. At the end of the first quarter, BTS' solidity was 80 per cent. Available liquid funds totalled MSEK 56.9 at the end of the period. Personnel At 31 March, BTS Group AB employed 117 people (130). The average number of employees during the period was 119 (128). The Parent Company The parent company's net turnover amounted to MSEK 0, and result after net financial expenses were MSEK 0.2. Liquid funds totalled MSEK 45.0. Prospects for 2002 The state of the market remains uncertain and hard to predict. The result before tax is estimated to become better than 2001. Accounting principles This report has been compiled in accordance with the recommendation of the Swedish Financial Accounting Standards Council, RR 20 interim reporting. The Council's Recommendation RR1:00 - Consolidated Reporting - is to be applied from 2002 onwards. Application of this recommendation does not have any material effect on results or the financial situation. Therefore, no adjustments have been made for the comparative year. Otherwise, the principles applied are the same as those used for the previous year. Future reporting dates Interim report January-June 23 August 2002 Interim report January-September 23 October 2002 Year end report 2002 February 2003 Stockholm, 26 April 2002 Henrik Ekelund President and CEO *Open telephone meeting with Henrik Ekelund Friday, 26 April between 04.00 - 04.30 pm. Telephone nr. +46 8 598 001 04. For information, please contact Henrik Ekelund, President and CEO (+46 733-500 150) CFO, Stefan Brown (+46 8-58 70 70 00) or visit our Web site at www.bts.com This report has not been specially reviewed by BTS' auditors. BTS Group AB Grevgatan 34 114 53 Stockholm SWEDEN Tel. +46 8 58 70 70 00 Fax. +46 8 58 70 70 01 www.bts.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/04/26/20020426BIT01220/wkr0001.doc The Full Report http://www.waymaker.net/bitonline/2002/04/26/20020426BIT01220/wkr0002.pdf The Full Report