Sales increase and improved results

Semcon introduced a new market-oriented organization on 1 January for
engineering services, which has been well received by both employees and
customers alike. The year began with a sales increase and improved results
compared to last year. Demand is expected to gradually improve and we expect
positive developments to continue in 2014.
• The operating income was SEK 704 million (626) and organic growth was 10%
• The operating profit was SEK 41 million (35), giving an operating margin of
5.9% (5.6)
• The profit after tax was SEK 30 million (25)
• Earnings per share (EPS) after dilution was SEK 1.63 (1.38)
• The equity/assets ratio was 52% (50)
• Return on shareholder’s’ equity was 15% (21)

Income and result
Operating income rose by SEK 78 million to SEK 704 million (626), giving organic
growth of 10%. The sales growth is not only due to increased demand, but also
that some projects included a greater amount of purchases of goods and services.
The operating profit improved by SEK 6 million, amounting to SEK 41 million
(35), giving an operating margin of 5.9% (5.6). Net financial items amounted to
SEK -1 million (-1), giving a profit before tax of SEK 40 million (34). Tax
costs for the quarter stood at SEK -10 million (-9). The profit after tax was
SEK30 million (25) and EPS after dilution was SEK 1.63 (1.38).
Financial position
The operating cash flow from current activities was SEK -51 (-17). The Group’s
cash and bank balances amounted to SEK 51 million (55) with additional non
-utilized credit of SEK 309 million (336) as at 31 March. Investments in
hardware, licences, office supplies and equipment, amounted to SEK 7 million
(4). Shareholders’ equity amounted to SEK 666 million (599) and the equity/
assets ratio was 52% (50). The Group’s net debt has fallen by SEK 32 million
over the past year and amounted to SEK 49 million (81) and the debt/equity ratio
was 0.1 times (0.1) with an interest coverage ratio of 14 times (25).

Staff and organisation
The headcount on 31 March was 3,042 (2,969). The number of employees in active
service was 2,902 (2,867). In the respective business areas the headcount is as
follows: Engineering Services Nordic 1,085 (1,079), Engineering Services Germany
1,088 (1,079), Engineering Services International 343 (287) and Product
Information 526 (524).

Outlook
Customers’ needs for development services remain high with demand expected to
gradually improve. Semcon expects positive developments to continue in 2014.
Semcon is a global company active in the areas of engineering services and
product information. The Group has around 3,000 employees with extensive
experience from many different industries. Semcon develops products, plants and
information solutions along the entire development chain and also provides many
other products and services including quality control, training and methodology
development. Semcon increases customers’ sales and competitive strength by
providing them with innovative and solid engineering solutions. From 2014 the
business will be run in four business areas: Engineering Services Nordic,
Engineering Services Germany, Engineering Services International and Product
Information. The Group had sales of SEK 2.5 billion with activities at more than
45 sites in Sweden, Germany, the UK, Brazil, China, Hungary, India, Spain and
Russia.