Interim Report January-June 2008 Teleca reports EBIT margin of 6% and underlying growth in services of 4%; cautious outlook for H2 2008 Key figures, SEK million 2008 Q2 2007 Q2 % 2008 H1 2007 H1 % Operating 308 324 -5 604 642 -6 income Operating 18 -55 n.a 8 -598* n.a earnings (EBIT) Earnings for 11 -67 n.a -14 -704 n.a the period from continuing operations Earnings for - -34 n.a - 350 n.a the period from discontinuing operations Net earnings 11 -101 n.a -14 -354 n.a for the period Earnings per 0.16 -1.62 n.a -0.21 -5.68 n.a share, SEK Cash flow -22 -150 n.a -35 -202 n.a operating activities Cash flow -25 619 n.a -47 576 n.a after investments * H1 2007 EBIT includes write-down of goodwill of SEK 357 million, write-down of capitalized expenses for development of SEK 104 million and provisions for restructuring of SEK 41 million. Second quarter highlights § Revenues totaled SEK 308 million (324). Service revenues totaled SEK 276 million (277) Adjusted for negative currency effects of SEK 13 million, services revenues increased by 4%. Product revenues amounted to SEK 32 million (47). § Teleca managed to recover from a difficult situation in Q1 and the profitability is in line with our revised expectations. Teleca reports operating earnings (EBIT) of SEK 18 million (-55) and a 6% (-17) operating margin. The result includes expensed cost of SEK 10 million for the closure of two small sites in Europe and early termination of lease agreements for excess facilities. § Teleca has been taking significant steps during the second quarter to refine its plans to be able to execute upon long-term profitable growth in off-shore services in the wireless industry. Teleca will continue to execute those plans through the balance of 2008, while being cautious in the short term with regards to a difficult market environment. Press and analyst conference Teleca will host a conference call to present the earnings figures at 08.30 (CET) on 18 July 2008. Call SWE +46 (0)8 505 59853, UK +44 (0)20 3043 2436 or US +1 866 458 40 87, or follow live via the internet at www.teleca.com. For more information contact § René Svendsen-Tune, President and CEO, Teleca AB, mobile +45-40540068 § Christian Luiga, CFO, Teleca AB, mobile +46-703751604 § Mattias Stenberg, Investor Relations Manager, Teleca AB, mobile +46- 706119616
Interim Report January-June 2008
| Source: Teleca AB