Interim Report Rejlers AB January – June 2015

Breakthrough order in the Norwegian market

Second quarter
» Revenue increased by 3 per cent to SEK 456.5 million (442.0)
» Operating profit was SEK 20.1 million (0.2)
» The operating margin amounted to 4.4 (0.0) per cent
» Profit after tax was SEK 14.9 million (0.7)
» Earnings per share before dilution were SEK 1.21 (SEK 0.04)
» Diluted earnings per share were SEK 1.21 (SEK 0.04)

First half-year
» Revenue increased by 3 per cent to SEK 908.7 million (880.9)
» Operating profit was SEK 43.0 million (13.6)
» The operating margin amounted to 4.7 (1.5) per cent
» Profit after tax was SEK 32.1 million (9.0)
» Earnings per share before dilution were SEK 2.61 (0.74)
» Diluted earnings per share were SEK 2.61 (0.73)

Statement from President and CEO Peter Rejler
During the quarter, we won a breakthrough order in the Norwegian market worth several hundred million NOK. We signed this significant agreement with Norkring AS, which is Norway's largest provider of terrestrial radio broadcasting services and digital television services. The agreement is for a period of five years and covers operation and maintenance of Norkring's nationwide terrestrial network.

The second quarter shows an improved operating profit compared with the same period in the previous year and is on a par with the results for the first quarter of the year. The improvement in profit is due partly to an increased volume of orders and partly to the Norwegian operations having been adversely affected by project losses of SEK 7 million in the second quarter of the previous year.

Revenue increased by 3 per cent in the second quarter compared with the corresponding period in the previous year. The aim is to successively improve profitability while continuing to achieve strategic growth. Cash flow from operating activities remained strong at SEK 33.8 million and we have a stable, low level of net debt that facilitates continued investments.

We carry out two acquisitions in line with our ambition to expand in the energy sector. We acquire Caruna's project management operations, which strengthen our position as the marketleading technical consultancy in electricity distribution in Finland, and we also acquire an automation services business in Sweden. The acquisitions have boosted our organisation by 33 engineers.

In Sweden, we are seeing increased order intake in the building and property sector, but a lower level of orders in the mechanical engineering and processing industries. While the demand for our energy efficiency services increases. We have concluded several large railway agreements with the Swedish Transport Administration this quarter.

In Finland, we are seeing a degree of recovery compared with the previous year, particularly in the telecommunications and energy sectors. The economic conditions remain unfavourable, but we have improved our order volumes nonetheless.

In Norway, we have continued to focus on improving our profitability and boosting order intake. At the same time, we need to keep on recruiting additional skills in order to meet customer demand.

Thanks to its 1,800 specialist engineers, Rejlers is now able to provide more turnkey solutions and assume increased project responsibility. I am convinced that, by delivering high-quality projects and by being an attractive place to work and the most healthy company in our sector in the Nordic region, we will achieve our growth target of 2020-3030-4040.

For further information:
Peter Rejler; President and CEO, +46 70 602 34 24, e-mail: peter.rejler@rejlers.se
Mats Åström; CFO, +46 73 412 66 75, e-mail: mats.astrom@rejlers.se

Rejlers is one of the largest engineering consultancy firms in the Nordic region. Our 1,800 experts work with projects within the areas of Building and property, Energy, Industry and Infrastructure. With us, you will meet specialist engineers with the breadth, cutting edge expertise and not least energy to create the results you want. We are continuing to grow rapidly and our activities are spread across 80 locations in Sweden, Finland and Norway. In 2014, Rejlers had revenue of SEK 1.7 billion and its Class B share is listed on Nasdaq Stockholm.