Interim report (1 January - 30 September) 2001

Interim report (1 January - 30 September) 2001 Financial information January - September · Net turnover increased by 46% to SEK 14.0 million (SEK 9.6 million). · Profit/loss after net financial income/expense amounted to SEK -22.4 million (SEK -23.4 million). · Liquid assets and current receivables totalled SEK 12.5 million (SEK 38.7 million). Third quarter · Net turnover increased by 49% to SEK 4.6 million (SEK 3.0 million). · Profit/loss after net financial income/expense amounted to SEK -7.3 million (SEK -9.3 million), including a capital loss of SEK 1.2 million on the sale of shares in associated companies. · Contract for FormPipe with SEB relating to the banking consortium for online transactions, Bankernas ID-tjänst. · Significant increase in revenue within Sign On Form archive. · Praktikertjänst AB became new shareholder via directed new share issue of SEK 4.5 million. Important events after the end of the third quarter · Breakthrough order for FormPipe software from EDS in Scandinavia. · October saw a reverse in the trend with a positive result thanks to new sales of FormPipe and the Sign On Form archive. Future prospects · The trend in sales for both FormPipe and the entire Sign On Electronic forms business area is expected to generate ongoing profit increases for the remainder of the year and contribute to a balanced cash flow for the fourth quarter of 2001. Contact : Bosse Falgard, Chief Executive Officer Sign On AB (publ) Tel: +46 (0)8-555 290 00, +46 (0)70- 946 05 68, e-mail: bosse.falgard@signon.se About Sign On Sign On is a software company supplying the product FormPipe and Sign On Electronic forms. The business model is based on a very high proportion of recurring revenues. The FormPipe software was developed by Sign On and allows anyone to both process and sign documents and contracts via the Internet. Sign On offers a solution to enable everyone to use electronic forms and send information via the Internet, with or without a secure electronic signature, quickly and cost-effectively. The technology is complicated but the solution is straightforward and simple to use. Since January 2001, electronically signed documents have been equivalent in Swedish law to a document with a physical signature. The other EU countries, the USA, Australia and a number of countries in Asia implemented corresponding amendments to acts in 2001. FormPipe Breakthrough order for FormPipe from EDS Sweden AB (EDS). At the start of October Sign On concluded a contract with EDS, which has purchased the right to use FormPipe for a number of selected customers in Scandinavia. EDS can now offer its customers a solution they have long been demanding for secure transfer of documents via the Internet. EDS customers process large quantities of contracts, applications and transactions every day. These can now be signed and transferred via the Internet - quickly, securely and in a manner which is legally binding, making it easier for EDS customers to conduct more business via the Internet. Sign On's deal with EDS is the big breakthrough for FormPipe. Given its global presence and close relations with the world's major companies, authorities and organisations, EDS is an ideal co-operation partner for Sign On. Co-operation with EDS will start in Scandinavia and the next stage for Sign On, in conjunction with EDS, will be to offer FormPipe, including operation, to customers in other parts of the world. Within the framework of the banking consortium Bankernas ID-tjänst, Sign On and Skandinaviska Enskilda Banken (SEB) will offer the banks' customers the opportunity to identify themselves electronically and use an electronic signature to sign forms and documents via the Internet in their dealings with authorities and companies. During the third quarter of 2001 Oslo municipality concluded an agreement with Sign On concerning the right to use FormPipe. Sign On assesses that there is a corresponding need among other municipalities in Norway. Sign On Electronic forms During the third quarter of 2001 Sign On sold major subscriptions to customers such as Handelsbanken, KPMG, SET, LRF Konsult, the Swedish Hotel and Restaurant Workers' Union, Nordbanken Fastigheter and IHM. This and a changed price structure have contributed to a significant increase in revenue during the third quarter. Customers now pay in relation to the number of employees they have, instead of a fixed price per subscription as before. With the new price structure, the price for a subscription starts from SEK 3 500 per company. Since September the Sign On Form Archive department has been generating a positive profit contribution of approx. SEK 0.7 million per month, thanks to an ever- increasing customer base and recurring revenues as a result. During the third quarter the Sign On Form Hotel department concluded contracts with customers such as SINF (the Swedish Industrial Association), FAS (the Swedish Working Life and Social Science Research Council) and the Parish Association of the Church of Sweden. Financial and miscellaneous information for the first three quarters of 2001 FormPipe · Net turnover of SEK 0.5 million. · Profit/loss after net financial income/expense amounted to SEK -13.6 million. · No development expenditure was capitalised during the period. · The profit/loss figure is lower than it would otherwise have been as a result of costs for disposal of shares in associated companies. Sign On Electronic forms · Net turnover of SEK 13.5 million. · Profit/loss after net financial income/expense amounted to SEK -8.8 million. Turnover and profit/loss · Net turnover of SEK 14.0 million (SEK 9.6 million). · Profit/loss after financial items amounted to SEK -22.4 million (SEK -23.4 million). Financial status The company's liquid assets and short-term receivables as at 30.09.2001 totalled SEK 12.5 million (SEK 38.7 million). The equity ratio was 61% (85%). Shareholders' equity was SEK 10.8 million (SEK 39.2 million), corresponding to shareholders' equity per share of SEK 1.49 (SEK 5.53). A directed new issue of 150 000 shares brought in SEK 4.5 million. The number of shares following the new issue is 7 239 000. Investments During the first three quarters of 2001, acquisition of shares in associated companies totalled 0 (SEK 1.4 million). The sale of the entire holding (20%) of shares in Altcom AB resulted in a total loss of SEK -1.2 million. Investments in tangible fixed assets totalled SEK 1.8 million (1.7 million). New shareholders Praktikertjänst AB's pension fund became a shareholder as a result of the directed new issue, adding another strong owner to Sign On's circle of owners. Our other major shareholders include the 6th National Swedish Pension Fund, Alecta Pensionsförsäkring, Skandia Livförsäkring and Inter IKEA. Future prospects During the third quarter FormPipe landed a breakthrough order. Global legislation which equates electronically signed documents with conventional signatures, combined with the market's demand for quick, secure and legally binding transfer of documents via the Internet, point towards continued success for FormPipe. Sign On Electronic forms still have enormous potential for expansion, with new customers among companies, organisations and associations, all of which have a need for contract templates, forms and documents. Experience shows that a customer who has started to use electronic forms is unlikely to go back to pen and paper. This means annually recurring revenues. Increased use of computers and the Internet is broadening the market on a daily basis. Users of electronic forms are potential users of and customers for FormPipe; it is easy to expand the service with secure electronic signatures. Sign On therefore anticipates continuous profit improvements for the remainder of the year and expects to achieve a balanced cash flow for the fourth quarter of 2001. This picture will be reinforced in 2002, as the year will begin with already contracted rental income of at least SEK 15 million. Forthcoming reports / general meeting Press release of unaudited accounts for 2001 20 February 2002 Interim report Jan-Mar 2002 April 2002 General meeting April 2002 Danderyd, 31 October 2001 Bosse Falgard Chief Executive Officer This interim report has not been subject to scrutiny by the company's auditors. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/31/20011031BIT00500/bit0002.doc The full report http://www.waymaker.net/bitonline/2001/10/31/20011031BIT00500/bit0002.pdf The full report