SEMCON INTERIM REPORT JANUARY-SEPTEMBER 2018

Earnings double for second consecutive quarter

Comment from CEO Markus Granlund:
The impressive commitment and positive energy from my colleagues is continuing to yield results. Every day we make a difference by developing smart technology that creates benefits for end users and enhances the competitiveness of our customers. Both customer satisfaction and internal commitment are at very high levels, which were confirmed in the financial performance. For the second consecutive quarter, we have doubled our operating profit year-on-year.

Our profound expertise in product development, production optimisation and aftermarket are sought after in the market. At the same time, the shift towards more attractive business and delivery models, together with increased internal efficiency and productivity is producing clear results.

Demand for our offering is favourable in all industries, and this has helped to balance the distribution of our operations between industries. Our new office in Södertälje and the deeper collaboration with AstraZeneca are examples of our focus on Life Science. Our inter-disciplinary expertise can be transferred between departments, markets and business areas. Demand is strong for smart, digital solutions, such as AI, automation and electrification, which offers us a good position and we can leverage the breadth of our offering. Everything from maximising operating time through smart product information to automated solutions, such as the new collaboration with Powercell to manufacture green fuel cells.

Rising demand for digital solutions in combination with our in-depth expertise in R&D has played a part in the improved results. Engineering Services reported a strong earnings trend compared with the year-earlier period, with earnings improving primarily in Sweden and Norway. The Product Information business area, which had a challenging start to the year, improved its results in the third quarter and the positive trend is expected to continue back to previous profitability levels. The acquisition of Haas-Publikationen GmbH, completed in April, is boosting earnings.

With additional measures to strengthen margins and favourable market conditions, we are confident of a positive earnings trend for the Group at the end of the year. We have fantastic employees, a good position and an attractive offering that together provide the right conditions for continued profitable growth.

Third quarter

• The operating income amounted to SEK 405 Million (367) and the organic growth was 7% 
• The operating profit amounted to SEK 18 Million (9), yielding an operating margin of 4.4% (2.4) 
• The profit after tax amounted to SEK 14 Million (6) 
• Earnings per share (EPS) after dilution amounted to SEK 0.75 (0.35)

January-September

• The operating income amounted to SEK 1,353 Million (1,289) and the organic growth was 3% 
• The operating profit amounted to SEK 79 Million (59), yielding an operating margin of 5.8% (4.5) 
• The profit after tax amounted to SEK 60 Million (44) 
• Earnings per share (EPS) after dilution amounted to SEK 3.33 (2.45) 
• The equity/assets ratio amounted to 60% (61)

This information is information that Semcon AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication at 08.00 (CET) on 25 October 2018.

For more information, please contact:

Björn Strömberg, CFO, Semcon
Tel: +46 (0) 70-835 44 80 Email: bjorn.stromberg@semcon.com

Semcon is an international technology company that develops products based on human needs and behaviours. We strengthen our customers’ competitiveness by always starting from the end user, because the person who knows most about the user’s needs creates the best products and the clearest benefits to humans. Semcon collaborates mainly with companies in the automotive, industry, energy and life science sectors. With more than 2000 specialised employees, Semcon has the ability to take care of the entire product development cycle, from strategy and technology development to design and product information. Semcon was founded in Sweden in 1980 and has offices in over 30 locations in eight different countries. In 2017, the Group reported annual sales of SEK 1.8 billion. Read more on semcon.com

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