Interim report January - June 2007

Semcon enters a new phase

Q2

• Sales rose by 59.4% to SEK 684.3 million (429.2 m). Organic growth reached 10.9%
• The operating profit after depreciation (EBIT) was SEK 4.1 million (18.0 m), giving an operating margin of 0.6% (4.2)
• Results have been hit by one-off costs of SEK 31.0 million (5.9 m) concerning a cost-cutting scheme, the dismissal of the CEO, divesting businesses and integrating IVM Automotive. Excluding these items, the operating profit would have been
• SEK 35.1 million (23.9 m) and the operating margin 5.1% (5.6)
• The loss after tax was SEK 0.8 million (+12.2 m)
• The EPS was SEK -0.19 (+0.64)


January – June
• Sales rose by 39.1% to SEK 1,154.1 million (829.6 m). Organic growth reached 15.6% The operating profit after depreciation (EBIT) was SEK 49.3 million (54.5 m), giving an operating margin of 4.3% (6.6)
• Excluding one-off costs of SEK 32.0 million (5.9 m), the operating profit would have been SEK 81.3 million (60.4 m) and the operating margin would have been 7.0% (7.3)
• The profit after tax was SEK 30.6 million (38.0 m)
• The EPS was SEK 1.43 (2.12)


Significant events after the period
Semcon has agreed with the JCE Group about acquiring 100 per cent of the shares in Caran AB, Caran Design Limited, A2 Acoustics AB and Caran Embedded Intelligent Solutions AB. The takeover is expected to be carried out on 1 September 2007. More information will be available in a separate press release.


Significant events April-June 2007
The acquisition of IVM Automotive in Germany went ahead on 1 April. The company has sales of around SEK 850 million on an annual basis and has today around 1,000 employees. The company was merged into the Semcon Group during Q2. This has given us a wider customer base, increasing opportunities for more, larger business deals. Semcon is now one of the three biggest European suppliers of development services to the auto industry. Our international expansion is also continuing according to plan. One major breakthrough was establishing in Brazil, where over a relatively short period we have done deals with four new customers.

The Board has decided to dispose of all business in the Zpider business area. The business area is very successful, but for Semcon to be an internationally leading development company we need to focus on our core business of product development and information solutions. Due to the sale of Zpider, no new share issue is planned, which was previously announced.

Furthermore, a comprehensive cost-cutting scheme at central level was introduced during the period. These measures are expected to provide savings of around SEK 30 million in Sweden and SEK 15 million in Germany, with the full effect being realised in the 2008 financial year.