Interim Report for the period January 1 - June 30, 2002

Interim Report for the period January 1 - June 30, 2002 At the request of the board of directors of ENEA DATA AB, the CEO hereby submits the following interim report for the period January 1 - June 30, 2002. · Enea Group net sales SEK 368 million (-27%) · Enea Group result after net financial income SEK -68 (-110) million · OSE Systems net sales SEK 104 million (-12%), result after net financial income SEK -62 (-135) million · Consultancy operations net sales SEK 276 million (-35%), operating loss SEK -42 (20) million, including restructuring costs of SEK 26 million We anticipate that OSE Systems will continue to hold a strong position with manufacturers of telecom and datacom equipment with its real-time operating system, even if OSE Systems is showing a reduction in sales of 12 percent compared with the first half of last year, which we deem to be related to the current state of the market. The Swedish market for consultancy has remained weak, and in the Stockholm area the market weakened further during the first six months of this year. There remains an overcapacity in the market, resulting in a downward pressure on prices. The demand among customers is increasingly for more total undertakings, which Enea judges to be advantageous for Enea in the long term. The American market for consultancy weakened further during the first six months of this year. To a large extent, Enea TekSci has been able to compensate for a reduction in the volume of activities by a reduction in fixed costs. We are unable to predict when there will be an upturn in either the consultancy market or the global market for real-time operating systems. Enea Group At the close of the period, the number of employees was 694. The number of employees will reduce further as a result of ongoing reductions in personnel. Net sales Operating Operating Profit/loss January - June profit/ profit/ after net loss. exkl gw loss. incl gw financial amort. amort. items (SEK million) Actual Actual Actual Actual Actual Actual Actual Actual 2002 2001 2002 2001 2002 2001 2002 2001 Enea Realtime 167.7 210.1 -29.1 14.6 -33.7 10.0 -35.6 7.7 Enea Business 52.1 113.9 -9.2 3.0 -10.3 1.7 -11.2 0.7 Software Enea TekSci 59.7 102.3 1.6 8.3 1.6 8.3 1.7 8.6 Consulting -3.6 -3.6 adjustments Consulting 275.9 422.7 -36.7 25.9 -42.4 20.0 -45.1 17.0 business Enea OSE 104.5 119.0 -50.3 -125.7 -57.5 -128.6 -61.8 -134.8 Systems* Parent company. -12.6 -37.2 -8.9 2.5 -62.4 -7.1 39.1 8.1 gw. Other Enea Group 367.8 504.5 -95.9 -97.2 -162.3 -115.7 -67.8 -109.7 Enea-konc. rull 915,8 571,9 -32,3 51,9 0,0 0,1 -21,4 55,0 12 mån January - June Operating marginOperating margin Net margin excl gw amort. incl gw amort. % Actual Actual Actual Actual Actual Actual 2002 2001 2002 2001 2002 2001 Enea Realtime -17% 7% -20% 5% -21% 4% Enea Business -18% 3% -20% 1% -22% 1% Software Enea TekSci 3% 8% 3% 8% 3% 8% Konsultrörelsen -13% 6% -15% 5% -16% 4% Enea OSE Systems -48% -106% -55% -108% -59% -113% * Enea Group -26% -19% -44% -23% -18% -22% Net sales Operating Operating Profit/loss April - June profit/ profit/ after net loss. exkl gw loss. incl gw financial amort. amort. items (SEK million) Actual Actual Actual Actual Actual Actual Actual Actual 2002 2001 2002 2001 2002 2001 2002 2001 Enea Realtime 79.4 98.6 -14.1 -3.9 -16.4 -6.2 -17.1 -7.4 Enea Business 24.3 70.7 -9.2 0.3 -9.6 -0.3 -10.0 -0.8 Software Enea TekSci 28.7 51.2 -0.1 3.7 -0.1 3.7 -0.1 4.0 Consulting -1.4 0.1 adjustments Consulting 131.0 220.6 -23.4 0.1 -26.1 -2.8 -27.2 -4.2 business Enea OSE 64.6 67.7 -12.2 -66.5 -15.8 -69.4 -19.0 -75.4 Systems* Parent company. -4.7 -19.2 -5.4 1.8 -8.4 -2.1 -2.7 6.3 gw. Other Enea Group 190.9 269.1 -41.0 -64.6 -50.3 -74.3 -48.9 -73.3 Enea-konc. rull 915,8 571,9 -32,3 51,9 0,0 0,1 -21,4 55,0 12 mån April - June Operating marginOperating margin Net margin excl gw amort. incl gw amort. % Actual Actual Actual Actual Actual Actual 2002 2001 2002 2001 2002 2001 Enea Realtime -18% -4% -21% -6% -22% -8% Enea Business -38% 0% -40% 0% -41% -1% Software Enea TekSci 0% 7% 0% 7% 0% 8% Konsultrörelsen -18% 0% -20% -1% -21% -2% Enea OSE Systems -19% -98% -24% -102% -29% -111% * Enea Group -21% -24% -26% -28% -26% -27% * OSE figures incl Polyhedra from 01-05-01 Any discrepancies in these totals are due to rounding off figures. Investments Group investments during the period amounted to SEK 7.1 (123.6) million. Liquid Assets and Financial Position Liquidity is strong, with liquid assets amounting to SEK 144.6 (171.7) million at the end of the period. Earnings per share Earnings per share for the period amounted to SEK -0:43 (SEK -0:56 ). No dilution is anticipated. Parent Company - Enea Data AB Net sales for the period were SEK 0.0 (0.0) million with profit after financial income at SEK 63.2 (16.5) million. This result is since the first quarter burdened by a write-down of shares in the subsidiary TekSci Inc. of SEK 45 million. Financial income was SEK 72.0 (15.3) million. Liquid assets amounted to SEK 83.0 (102.7) million. The parent company's investments amounted to SEK 1.9 (2.8) million. During the second quarter 15,000 shares of earlier re-purchased shares in Enea Data AB have been transferred to employees in Enea TekSci Inc. according to agreement at acquisition. Still to be settled are 59,880 shares. The number of employees at June 30th 2002 was 26. Subsidiary Group - Enea Realtime For net sales and result for the period, please refer to the separate statement. Thirty persons will leave Enea Realtime as a result of the notice that was given in June. This constitutes an adjustment to a smaller market for consultants in the Stockholm area. The market has been experienced as weaker during the second quarter than during the first quarter. The number of total undertakings has, as anticipated, increased on the whole but at the expense of the proportion of individual assignments. This applies to the majority of our customers. During the second quarter, a frame agreement was signed with Ericsson, confirming the close cooperation and ties that Enea Realtime has had for many years, and continues to have, with Ericsson. A cooperation agreement has also been signed with Tetra Pak. All in all, new assignments have been obtained during the second quarter from Ericsson, Telia, Hotsip, Siemens Elema, Volvo, Inmotion and Micronic, among others. The number of employees at June 30th 2002 was 331. The number of employees will reduce in the next quarter as personnel who have been given notice leave operations. Subsidiary Group - Enea Business Software For net sales and result for the period, please refer to the separate statement. The result for the period has been affected by a major loss in a fixed price project, and generally by a weak market in the Stockholm area. The market in the Uppsala region has exhibited greater stability, as has the market for our Health Services operations. During the second quarter, important assignments have been received from among others Vattenfall, Rikspolisstyrelsen (the National Swedish Police Board), Ericsson, Läkemedelsverket (the Swedish Medical Products Agency) and Stockholms Läns Landsting (the Stockholm County Council). The number of employees at June 30th 2002 was 124. Subsidiary - Enea TekSci Inc. For net sales and result for the period, please refer to the separate statement. The volume of sales within Enea TekSci has reduced further during the second quarter. This is entirely attributable to the weak American market for consultancy services; a market from which many previous competitors without peak competencies have disappeared. Enea TekSci's strength is in development and process know-how within High Reliability and Safety Critical software. The majority of customers are from the aviation industry. Among important clients during the quarter, the following can be mentioned: - Boeing - British Aerospace - Honeywell - NEC - Freeflight - Compressor Controls - AllOptical The number of employees at June 30th 2002 was 63. Group Consultancy Operations in Summary Net sales for the period for the Group's combined consultancy operations amounted to SEK 276 million (-35%), and the operating profit/loss was SEK -42.4 (20.0) million including restructuring costs for Enea Realtime of SEK 26 million. Subsidiary Group - OSE Systems Market Development The decline in the global telecommunications market continues and there are still no clear signs of a turnaround. Customers are continuing to show restraint in their purchasing activities, which is having an effect on our sales. In our estimation, our competitiveness continues to remain solid. Manufacturers of telecom and datacom equipment and semiconductor manufacturers and others operative in markets for embedded systems continue to show great interest in our products. Design Wins During the Period During the second quarter, new design wins have been received from many companies including: - Motorola (US, England) - Texas Instruments (US) - Digital Access (US) - Mercury (US) - Alaris Medical Systems (US) - Pannaway Technologies (US) - BAE Systems (England) - Thales Communications (England) - EADS Aerospace (Germany) - Crypto AG (Germany) - Thrane & Thrane (Denmark) - Volvo Trucks (Sweden) The above examples of design wins confirm that our OSE products continue to be highly competitive. Product Development The development of OSE for third generation mobile phones has run according to plan, and comprises an important addition to our product range. Other Items The number of employees at June 30th 2002 was 150, of which 73 were located outside Sweden. Combitech Systems Enea sold during the first quarter the shares in Combitech Systems AB (35%) to Saab AB. The capital gain is SEK 91.5 million. Outlook for the Full Year The Board remains firm in its resolve not to provide any forecast for the full year 2002. Conformity to the Recommendations of the Swedish Financial Accounting Standards Council This interim report has been prepared in accordance with the Annual Accounts Act and Recommendation 20 of the Swedish Financial Accounting Standards Council. As a result of the recommendations that came into force on 1 January 2001, the accounting principles applied have been changed since our latest Annual Report. The following Swedish Financial Accounting Standards Recommendations have now been applied: RR 1:00 Consolidated financial statements RR 15 Intangible assets RR 16 Provisions, contingent liabilities and contingent assets RR 17 Impairment of assets RR 21 Borrowing costs RR 23 Related party disclosures The only material effects of the new recommendations apply to RR 17 Impairments of assets. There is no need to restate previous year according to RR 1:00, Consolidated financial statements. RR15 Intangible assets, has not caused any need for capitalization of development expenditure. Future Information Interim Report for the third quarter: November 8, 2002 Preliminary Report on Earnings for 2002: February 7, 2003 Ola Berglund CEO Please direct questions to Ola Berglund, ph: +46 8 507 140 00 I have reviewed this half-year report for the period January 1st 2002 to June 30th 2002 in accordance with the recommendation issued by FAR (the Swedish Professional Institute for Authorized Public Accountants). A review is significantly limited in comparison to an audit. In the course of this review, nothing has come to my attention that might indicate that this half-yearly report does not comply fully with the requirements of the Annual Accounts Act of Sweden and the Swedish Stock Exchange Act. Per Bergman Authorized Public Accountant ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/08/09/20020809BIT00140/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/08/09/20020809BIT00140/wkr0002.pdf The full report