Strong financial position - dividend of SEK 2 per share

Semcon has had a good year with sales growth and improved profit. Focusing on
more markets and more profitable business models has paid off, both for our
customers and for Semcon. The financial position was reinforced over the year.
Net debt fell by SEK 172 million and the equity/assets ratio was 47% at year
-end. It’s also pleasing to have signed another major order in 2012 worth around
EUR 15 million with a German auto manufacturer. We have also extended our offer
to the German market through the acquisition of the product information company
Comet.
Fourth quarter

Operating income amounted to SEK 671 million (679). Sales in local currencies
remained unchanged overall. The drop in demand seen in the third quarter
remained in the fourth quarter, especially from certain customers in Design &
Development. The quarter also had two fewer working days than the same period
last year, equal to around SEK 20 million in income and SEK 16 million in
profit. The operating profit was SEK 55 million (57) giving an operating margin
of 8.2% (8.4). A lower utilization rate at Design & Development negatively
affected results. The action plan carried out by Design & Development negatively
affected results by SEK 2 million net. Net financial items totalled SEK -2
million (-3) giving a profit before tax of SEK 53 million (54). Tax costs for
the quarter stood at SEK 6 million (-18). The cut in company tax from 2013, from
26.3% to 22.0%, positively affected the fourth quarter’s tax costs by SEK 6
million. The profit after tax was SEK47 million (36) and EPS after dilution was
SEK 2.58 (1.98).

January- December

Operating income rose by SEK 119 million compared to last year and amounted to
SEK 2,571 million (2,452). Sales in local currencies rose by 6%. The sales
improvement is mainly attributable to increased demand from Informatic and
Automotive R&D compared with last year.  The year had three fewer working days
compared with 2011. The operating profit rose by SEK 82 million to SEK 193
million (111) giving an operating margin of 7.5% (4.5). The improvement is
mainly attributable to increased sales. Last year the result was burdened with
one-off costs of SEK 31 million for a reserve for Saab Automobile AB. The
business area showed the following operating margins excluding one-off costs:
Automotive R&D 6.6% (3.1), Design & Development 6.7% (7.9) and Informatic 11.9%
(11.3). Net financial items totalled SEK -7 million (-11) giving a profit before
tax of SEK 186 million (100). Tax costs for the quarter stood at SEK 45 million
(31). The profit after tax was SEK 141 million (69) and EPS after dilution was
SEK 7.80(3.83).

Financial position

The operating cash flow from current activities was SEK 186 million (88). The
Group’s cash and bank balances amounted to SEK 116 million (40) with additional
non-utilized credit of SEK 306 million (223) as at 31 December. The Group’s
credit agreements consist of an overdraft facility of SEK 150 million (150) and
a revolving credit facility of EUR 32.8 million (32.8), which run until July
2013. There is an option available for the company to extend the revolving
credit to a three-year loan before the due date. Investments in hardware,
licences, office supplies and equipment, amounted to SEK 22 million (17).
Shareholders’ equity amounted to SEK 579 million (442) and the equity/assets
ratio was 47% (38). The Group’s net debt fell by SEK 172 million to SEK 61
million (233) and the debt/equity ratio was 0.1 times (0.5) with an interest
coverage ratio of 26.8 times (8.7).

Staff and organisation

 The headcount on 31 December was 3,000 (2,894). The number of employees in
active service was 2,887 (2,786). In the business areas the headcount is as
follows: Automotive R&D* 1,772 (1,683), Design & Development* 701 (781) and
Informatic 527 (430).  * 26 employees transferred from Design & Development to
Automotive R&D on 1 July.

Share dividend

According to Semcon’s financial objectives a share dividend should be paid to
shareholders and be around one third of the profit after tax. From the reported
profit for 2012 the Board proposes a share dividend of SEK 2.00 per share (-).
The proposed dividend makes up a total of 26% of the company’s profit after tax
and amounts to SEK 36.2 million. The record day for the right to a share
dividend is proposed as Wednesday, 1 May 2013.

Outlook

Semcon has seen a drop in demand from some customers since the summer, mainly in
the Design & Development business area. The Group is also seeing a drop in
demand from the Swedish automotive industry, which has announced a drop in
purchase orders of product development services for 2013. This means that
Semcon, primarily in Sweden, predicts weaker demand for Q1 2013 compared with Q1
last year. There are also two fewer working days in Q1 2013 compared with last
year.The company is, however, looking positively at developments in 2013, as the
need for development services remains strong.
Markus Granlund, CEO Semcon AB, +46 31-721 03 11
Björn Strömberg, CFO Semcon AB, +46 31-721 03 05
Anders Atterling, IR Manager Semcon AB, +46 704-47 28 19
Semcon is a global company active in the areas of engineering services and
product information. The Group has 3,000 employees with extensive experience
from many different industries. We develop technologies, products, plants and
information solutions along the entire development chain and also provide many
services including quality control, training and methodology development. Semcon
boosts customers’ sales and competitive strength by providing them with
innovative solutions, design and solid engineering solutions. The Group has
sales of SEK 2.6 billion and activities at more than 45 sites in Sweden,
Germany, the UK, Brazil, Hungary, India, China, Spain and Russia