Cybercom Group: Interim Report January – June 2013

Regulatory News:

April – June 2013

• Sales amounted to SEK 313.3 million (336.8)
• EBIT was SEK 13.8 million (-16.6)
• EBIT margin was 4.4% (-4.9)
• Net profit after tax for the period was SEK 9.3 million (-21.2)
• Earnings per share were SEK 0.05 (-0.38)

January – June 2013

• Sales amounted to SEK 632.5 million (711.6)
• EBIT was SEK 29.5 million (1.9)
• EBIT margin was 4.7% (0.3)
• Net profit after tax for the period was SEK 20.4 million (-12.1)
• Earnings per share were SEK 0.11 (-0.22)

Key events

• The Finnish National Board of Education chose Cybercom for assignments worth approximately EUR 6.9 million. The contract runs for four years and is for the Board’s web services. · Cybercom won a contract for the E-Identification Board’s "Federation services for Swedish e-identification”, which runs for three years.
• SKL Kommentus Inköpscentral, SKI (the procurement function for Sweden’s municipalities and county councils) awarded Cybercom a framework agreement for IT consulting services. · Cybercom won a new framework agreement in information security, management and governance with the Swedish Migration Board.
• Cybercom develops and maintains systems for planning track maintenance works for Stockholm Public Transport (SL).
• New website launched, see www.cybercom.com

Comments from the CEO

We continue the development of Cybercom in line with our plan. We are correctly positioned in Connectivity and we are convinced that this will be an area of strongly accelerating demand in the coming years. With our Connectivity offering, we are growing strategic client accounts and balancing our client portfolio with a greater proportion of business won in the public sector and industry. In the former, I would draw attention to the significant business we have won with the Finnish National Board of Education and the Swedish E-Identification Board’s "Federation services for e-identification”. We have also recently been awarded a new framework agreement for IT consulting services through Kommentus Inköpscentral, SKI, which is the procurement function for Sweden’s municipalities and county councils. We see good potential in this agreement. We continue to strengthen our business in industry, particularly through notably good growth with our Finnish clients Outotec and Kone, as well as with SAAB in Sweden.

We are not seeing any major change in the market compared to the first quarter of the year. We have a steady flow of inquiries and are seeing new business opportunities, but the time taken for decisions to be made remains long. We are noticing tighter competition, especially in the Stockholm region. As expected, company changes at ST-Ericsson continued to have an influence on our business during this quarter, and to a somewhat greater extent than during the first quarter. I believe that we have well offset the negative effect of this on our business in southern Sweden through growing business in important new client accounts. Our business in testing and verification with clients such as QlikTech and Verisure is one such example.

The second quarter of the year has developed largely according to our expectations. Cybercom’s sales amounted to SEK 313.3 million (336.8). The decrease is a natural consequence of the implemented restructuring programme. However, it is positive that we are continuously increasing our sales per employee.

Our focus this year is on stabilising our profitability trend, and, compared with the same period last year, our improved efficiency means that we are able to demonstrate improvements in all segments. Group EBIT amounted to SEK 13.8 million (-16.6), giving a margin of 4.4% (-4.9). Net financial income continues to grow and we have increased net profit after tax for the period to SEK 9.3 million (-21.2). We are also beginning to see stronger cash flow.

We have respect for the challenges and the state of the economy that continue to characterise 2013. At the same time, we note that our strategic transition is moving according to plan and we continue to fundamentally improve our business in order to bring about sustainable changes to achieve our long-term financial goals.

Finally, I want to highlight our new website which was launched in June. It shows many of our exciting projects, please visit the www.cybercom.com.

Stockholm, July 15, 2013

Niklas Flyborg
President and CEO    

Cybercom is an IT consulting company that assists leading companies and organisations to benefit from the opportunities of the connected world. The company’s areas of expertise span the entire ecosystem of communications services. Cybercom’s domestic market is the Nordic region, and in addition the company offers global delivery capacity for local and international business. Cybercom was founded in 1995 and has been quoted on the NASDAQ OMX Stockholm exchange since 1999.

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