Combitech publishes Annual Report for 2012

Technology consultancy company Combitech, an independent subsidiary of defence and security company Saab AB, today releases its annual report for 2012. The company has achieved sales growth of 41 per cent with continued good profitability. The number of employees has grown by just under 400, largely as a result of two company acquisitions as well as a new development centre in Trollhättan.

During 2012 Combitech recorded a substantial increase both in incoming orders (28 per cent) and in sales (41 per cent). Sales amounted to MSEK 1,410, a growth that is largely explained by the acquisitions of Sörman Information and part of the Norwegian firm Bayes Risk Management. Combitech has also established a development centre in Trollhättan, where the majority of the staff was recruited from Saab Automobile. Growth during 2012 was greatest within the customer segments defence and aviation industries.

During 2012 several important events occurred at Combitech:

• A number of significant agreements were signed, including with the Swedish Defence Materiel Administration (FMV), Kockums and Oslo Airport.
• Combitech established a development centre in Trollhättan offering complete development assignments in Nordic industry, including the aviation and automotive sector. The aim is to employ over 200 staff. Today the centre has 115 employees, the majority of whom work on engineering assignments concerning the JAS 39 Gripen.
• January saw the acquisition of Sörman Information, which employs around 170 people. This company provides services and solutions within technical information management, which means that Combitech's service portfolio has been broadened.
• August saw the acquisition of 70 % of the Norwegian consultancy firm Bayes Risk Management, which offers risk analysis services for the oil and gas sector, as well as the finance market. This acquisition is part of Combitech's growth strategy on the Norwegian market.
• Combitech's activities by means of its Norwegian subsidiary show continued growth, with high-profile assignments for Oslo Airport, among others, and commissions, such as the extension of the Norwegian public safety radio network Nødnett.
• The number of employees increased by 389 to a total of 1,287.

"2012 has been an eventful and extremely positive year for us. The acquisitions, together with the development centre in Trollhättan, have created excellent opportunities for growth, which we have managed to take advantage of. We have further expanded our portfolio of services, and despite the widespread economic downturn, we are still seeing a lot of demand for our services," says Marie Bredberg, President of Combitech.

Level of incoming orders
There has been strong growth in incoming orders during the year – up 28 per cent on last year. Incoming orders comprise a mix of small and medium-size assignments, often linked to framework agreements.

Sales revenue
Sales revenue increased during the year by 41 per cent to MSEK 1,410, largely as a result of the company acquisitions and the development centre. The biggest increases are happening within the industrial and defence industry segments. Sales to customers other than Saab increased as well as sales within the Saab Group. Business activities with customers other than Saab accounted for 58 per cent (62). Sales revenue on markets outside Sweden amounted to 3 per cent (2 per cent).

Results and margins
Earnings before interest and taxes (EBIT) increased by 33 per cent to MSEK 122 due to the acquisitions and a strong organic growth. Profitability was 8.7 per cent (9.2 per cent), with the decrease being attributed to integration costs in connection with the acquisitions made during the year.

Operating cash flow
Operating cash flow was affected by the company acquisitions, and amounted to MSEK -43.

For further information
Charlotte Magnusson, Head of Communications, Combitech
Tel: +46 (0)734-184 143, E-mail: charlotte.magnusson@combitech.se

About Combitech
Combitech is one of Sweden's largest consultancy companies, combining technology, the environment and security. The company, which is an independent company within the defence and security group Saab AB, has around 1,300 employees in 20 locations across Sweden, as well as offices in Norway. Read more at www.combitech.se

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