PROFITABLE INTERNATIONAL GROWTH

ON A TOUGH MARKET

• Sales rose by 6.5% to SEK 1,200 million (1,127m)
• The operating profit (EBIT) reached SEK 10.1 million (5.7 m), up 79%
• Cash flow continues to be positive
• Several strategically important partnership agreements were signed

Comments by CEO Hans Johansson
"Despite a tough market, Semcon reported sales growth of 6.5% and operating profit of SEK 10.1 million. This proves that there is continuing demand for the competence of our highly capable consultants and our attractive business offer. Market conditions and a weak economy since the second half of 2001 have affected Swedish businesses and thus the entire consultancy market in Sweden.

"Our international activities have doubled in size and now account for 15% of our total sales in accordance with our strategic plans.

"Demand was weak throughout 2002 and weakened further at the end of the year and the start of 2003. We are prepared for yet another tough year when our aim will be to continue making a profit.

"Our managers have good knowledge about their markets and continually implement the required measures. In 2002 this meant concentrating our competence at fewer offices and departments. These continuous measures involved an SEK 41.5 million charge to the year’s results, of which SEK 15 million was in the final quarter.

"Changes in the market created a series of new business opportunities, including projects where we improve the efficiency of our customers’ product development in order to boost their profitability. Several new partnership agreements were signed where Semcon’s business offer, experience and competence were key factors. Partnership agreements were signed with Ericsson in Sweden within project management (PROPS), and in Denmark and Norway within wireless communication. In Sweden we also signed a partnership agreement with Volvo Buses, taking over their rig testing for durability and fatigue.

"It is very pleasing that Informatic’s partnership with Volvo Cars was extended for three years. With Informatic’s partnership concept for technical documentation we have established a leading position in northern Europe. The concept has attracted great interest and resulted in several concrete enquiries at the end of the year which have now lead to negotiations."

The Annual General Meeting will be held at 6 p.m. on 13 March 2003 at Semcon’s head office in Göteborg. The record date will be 3 March.

The Q1 report will be published on 28 April.

For further information please contact
CEO Hans Johansson on Tel: +46 (0)31 721 03 05, or mobile: +46 (0)70 591 43 34 or
CFO Bengt Nilsson Tel: +46 (0)31-721 03 11, or mobile: +46 (0)70 447 28 68.

Göteborg, 30 January 2003

SEMCON AB (publ)

Financial information in 2003

• AGM 13 March
• Q1 report January - March 2003 28 April
• Q2 report January - June 2003 21 August
• Q3 report January - September 2003 23 October
• The Annual report for 2002 will be ready at the beginning of March 2003.

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The following files are available for download:

The full report

The full report