Interim report January-March 2004

SEmcon IMPROVESPROFITABILITY
ON LACKLUSTRE MARKET

• Sales rose by 7% to SEK 313.2 m (293.2)
• Profits after tax rose to SEK 5.2 m (-17.6)
• Earnings per share of SEK 0.30 (-1.01)
• The operating profit (EBIT) reached to SEK m 10.0 (-23,8)

Comments by CEO Hans Johansson
Our profits, profit margin and cash flow in Q1 exceeded last year’s figures, and our business areas are enjoying positive earnings again.

I am pleased that customers’ confidence in us has improved still further. Our sales rose by 7% compared to 2003, while we succeeded in cutting our costs by 4%. This shows that our Fast2Profit scheme has produced the desired results. The restructuring scheme will continue in 2004 in areas that are still generating losses. The aim of Fast2Profit in 2004 is to cut costs by a further SEK 20 m.

Our improved sales are primarily due to the strategic contracts we signed with Ericsson and General Motors Europe last year in the Informatic business area.

As regards our focus branches, Vehicle is performing well and Telecom has improved somewhat. Medical & LifeScience remains stable, while Industry is performing weakly. However, there are big regional differences in the market trends for our activities.

We will continue with our strategy of international expansion. Most of our customers are part of global groups, and many decisions are made outside our traditional domestic market. All Semcon’s overseas business activities are under development and are still generating weak profits.

Göteborg, Sweden
27 April 2004

Hans Johansson 
SEMCON AB (publ)

Financial reports 2004
Interim report January - June 26 August
Q3 report January - September 21 October

All financial information can be found on Semcon’s website at: www.semcon.se

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