Interim report January-June 2006

Market position continues to strengthen

• Sales climbed by 7.2% to reach SEK 829.6 m (773.5) • The profit after tax was SEK 38.0 m (37.4) • Earnings per share was SEK 2.12 (2.15) • The operating profit after depreciation (EBIT) was SEK 54.5 m (49.2), giving an operating margin of 6.6% (6.4) Comments by acting CEO Lars-Inge Sjöqvist The period has been marked by many major events, including: many major business deals, signing new partnership agreements and completing a comprehensive range of organisational changes. Demand for our services remains strong and I am proud of the excellent customer value we provide. I had the benefit of meeting many of our customers during the Volvo Ocean Race, where we took part as the design and development partner to the Ericsson Racing Team, not least of all at the superb final stage in Göteborg in June. Our excellent customer relations are a valuable and stable foundation. Semcon is well-equipped for the future and will continue with its planned expansion, both internationally and on existing markets. Our business in the Informatic business area, with its clear focus on market and aftermarket information, has shown its best results ever. One of the reasons behind the excellent profitability is Informatic’s focus on value-based partnerships, plus the growth and results of projects at Zooma by Semcon, with interactive market information. The business area is continuing to invest internationally and has now opened a branch in Kineton, close to Land Rover’s and Jaguar’s product development centres. Establishing in Kineton means that we can provide a complete range of services for the delivery of aftermarket products to the motor industry in the UK. Our latest addition within the Zpider business, Zuite by Semcon, has rapidly become a certified Community Partner to SAP Svenska and has already signed a number of customer contracts, including one with Ericsson and one with HeidelbergCement. This makes Semcon a strategic partner to all of the most important suppliers within the IT industry including IBM, Microsoft and SAP. Zingle by Semcon, our recently established company dealing with Identity & Access Management, has also signed various new contracts. Semcon’s ability to rapidly create new ranges with creative and enthusiastic employees is a good sign of our positive business climate and our ability to rapidly satisfy customer demand. The Design & Development business area is continuing to focus on profitability. This means that the pace of recruitment has slowed, which in turn affects the pace of sales. Profitability is also affected by strong price pressure from our customers. We are now reviewing our entire cost structure as part of our remedial measures scheme. Meanwhile we have received some of the biggest projects ever in Automotive, in the face of strong international competition. It’s also positive that Knud E Hansen, our marine design company, has signed a contract with Lloyd Werft of Bremerhaven, Germany, for the detailed construction design for lengthening the M/V Stena Britannica. The order is one of the largest in the company’s history and will employ around twenty consultants. Other businesses showing positive progress includes Semcon’s and Flexlinks’ joint company Compliant Logistics that provide specialist expertise and solutions within In Compliance production logistics, automation and control system integration. Our structural business in Norway with Kongsberg Devotek has been a success. Norwegian industry has a huge need for development services and following a three-year partnership Semcon acquired 30 per cent of the Norwegian product development company in May. Meanwhile, Devotek acquired our Norwegian company Semcon Norway. Through part ownership we get a stronger business on the Norwegian market and we get faster inroads to a number of new international business opportunities, including in Germany. The Board has decided that as of 1 October 2006 to appoint Henrik Sund Semcon’s CEO. He has international experience of the consultancy and telecoms industry and has shown that he can lead and develop knowledge-based companies. The costs for the departure of the former CEO hit the period’s results by around SEK 6 million. Outlook Our objectives are continued growth and improved profitability through lower costs, utilization of low cost production and extended partnership business. The aim for 2006 is to win market shares in Sweden and abroad. We will continue to develop our specialist business offers in all business areas aimed at development- and communication-intensive industrial companies. We expect the good trade conditions experienced in 2005 to continue in 2006, which will give us good opportunities of achieving our goals, even though there are a number of areas of uncertainty, such as trends in the auto industry.