Interim report January-June 2016 - globenewswire.com · Interim report January-June 2016 Semcon is...

Second quarter • The operating income amounted to SEK 700 million (632) and organic growth was 10%• TheoperatingprofitamountedtoSEK31million(-28),givinganoperatingmarginof4.4%(-4.5)• TheprofitaftertaxamountedtoSEK22million(-22)• Earningspershare(EPS)afterdilutionamountedtoSEK1.24(-1.21)

January-June • TheoperatingincomeamountedtoSEK1,366million(1,309)andorganicgrowthwas5%• TheoperatingprofitamountedtoSEK54million(6),givinganoperatingmarginof4.0%(0.4)• TheprofitaftertaxamountedtoSEK39million(3)• Earningspershare(EPS)afterdilutionamountedtoSEK2.16(0.15)•Theequity/assetsratioamountedto46%(45)

Comment from CEO Markus Granlund: WearereportinghealthygrowthandsignificantlybetterresultsthanlastyearforQ2.Itispleasingtoseeallourbusinessareasreportingimprovementsinresults.BusinessareaEngineeringServicesNordicnotedincreaseddemandfrom,amongothers,theautomotiveindustry,whiletheenergysector,inNorwayespecially,remainedweak.BusinessAreaEngineeringServicesGermanycontinuedworkonthechangeprocessthatwasinitiatedattheendoflastyear.Withanewbusinessstructureandorganisationset,theprerequisitesarenowinplaceforgraduallyimprovingresults.ItispositivetoseethatbusinessareaEngineeringServicesInternationalissuccessivelyincreasingdeliveriesfromourspecialistsinBrazilconcerningautonomousvehiclesforcustomersinEurope.WeseegoodgrowthpotentialfortheentireGroupwithinthisarea.BusinessareaProductInformationsignedtwonewpartnershipagreementsinQ2withautomotivemanufacturersinSwedenandtheUK.Theprojectsarebeingdeliveredbyourglobalteamsandinitiallyinvolve65employees.Themarketisshowinggreatinterestinourmanagedservicesoffersthatprovidesignificantvalueforcustomers

throughhigherquality,improvedefficiencyandlowertotalcosts.Thetrendtowardsmoreconnectedproductsisveryclear.Ourknowledgeandexpertiseinproductdevelopmentinseveralindustriesisakeyelementinhelpingourcusto-merstocreatesmarterproductsthatmakelifesimplerfortheend-user.Semconisanattractiveandappreciatedsupplier,butinordertoincreaseourmarketshareandfurtherstrengthenour

brandwewishtoincreasevisibilityandbeevenmoredistinctinourcommunication.Consequently,duringtheautumnwewilllaunchournewcommunicationstrategy.

Interim report January-June 2016

Semcon is an international technology company within engineering services and product information. We have around 3,000 employees with extensive experience from many different industries. We develop technology, products, plant and information solutions along the entire development chain and also provide many services and products in areas such as quality control, training and methodology development. Semcon contribute to our customers’ competitive strength by providing innovative solutions, design and solid engineering expertise. Work processes and solutions are adapted to customer requirements, from taking part in the customer’s teams to in-house development projects. The Group had annual sales of SEK 2.6 billion in 2015 and activities at more than 40 sites in Sweden, Germany, the UK, Brazil, China, Hungary, India, Spain and Norway. Some of Semcon’s biggest customers include: ABB, AB Volvo, Audi, BMW, CEVT, Jaguar Land Rover, Scania, Volvo Cars and VW. Read more at www.semcon.com.

2 •SemconInterimreportJanuary-June2016

Income and result Second quarter TheoperatingincomeamountedtoSEK700million(632).Adjustedforcurrencyeffects,acquisitionsanddivestments,incomeincreasedby10%.Thequarterhadmoreworkingdayscomparedwithlastyear,whichaccountedforaround4%oftheincrease.TheoperatingprofitamountedtoSEK31million(-28),givinganoperatingmarginof4.4%(-4.5).Allbusinessareasreportedimprovedoperatingprofitcomparedwiththepreviousyear.LastyearbusinessareaEngineeringServicesGermany’soperatingprofitwasaffectedbySEK20millioninrestructuringcosts.NetfinancialitemsamountedtoSEK-1million(-1),givingaprofitbeforetaxofSEK30million(-30).ThetaxcostamountedtoSEK-8million(+8).TheprofitaftertaxamountedtoSEK22million(-22)andEPSafterdilu-tionwasSEK1.24(-1.21).

January-June TheoperatingincomeamountedtoSEK1,366million(1,309).Adjustedforcurrencyeffects,acquisitionsanddivestments,incomeincreasedby5%.Theperiodhadoneextraworkingdaycomparedwithlastyear,whichaccountedforaround1%oftheincrease.TheoperatingprofitamountedtoSEK54million(6),giving

anoperatingmarginof4.0%(0.4).Allbusinessareasreportedimprovedoperatingprofitcomparedwiththepreviousyear.LastyearthebusinessareaEngineeringServicesGermany’soperatingprofitwasaffectedbySEK20millioninrestructur-ingcosts.BusinessareaProductInformation’soperatingprofitwaspositivelyaffectedthisyearbyrecoveredwrite-downsofaccountsreceivableofSEK7million.NetfinancialitemsamountedtoSEK-2million(-2),givinga

profitbeforetaxofSEK52million(4).ThetaxcostamountedtoSEK-13million(-1).TheprofitaftertaxwasSEK39million(3)andEPSafterdilutionwasSEK2.16(0.15).

Financial position TheoperatingcashflowfromcurrentactivitieswasSEK-40million(-110).Cashflowisseasonallyweakinthefirsthalfoftheyear.Investmentsinhardware,licenses,officesuppliesandequipmentamountedtoSEK26million(23).TheGroup’sliquidassetsamountedtoSEK47million(55)withadditionalnon-utilisedcreditofSEK223million(177)asatJune30.Shareholders’equityamountedtoSEK622million(613)andtheequity/assetsratiowas46%(45).DuringQ2adividendofSEK22million(45)waspaidtoshareholders.TheGroup’snetdebtamountedtoSEK170million(198).Excludingpensioncommitments,netdebtamountedtoSEK99million(132).Thedebt/equityratiowas0.3times(0.3).

Important events during the period • InMarchSemconwasselectedasthe“RocketoftheYear”(mostplacesclimbedbyacompany)inUniversum’san-nualsurveyofattractiveemployersinapollof24,000engineeringstudents.

• InAprilSemconsignedapartnershipagreementwithChinaEuroVehicleTechnologyAB(CEVT)concerningproductinformationforanewmodelprogram.Theprojectwillatmostinvolvearound40employeesandisexpectedtorununtiltheendof2017.

• InAprilSemconsignedapartnershipagreementwiththeLondonTaxiCompanyconcerningaftermarketinforma-tionwithaclearfocusondigitaltechnology.Theagre-ementwillrunforfiveyearsandinitiallyinvolvearound25employees.

• InAprilSemcon’sInnovationLablauncheditsfirstproductconcept,acompactandcost-effectivemotorprototypethatcanbeinstalledonanybicycle.Thisinnovationisuniqueonthemarketandthelaunchreceivedgreatat-tention.

• InMaySemconreceivedaprestigiousprizeinBrazilforitsfocusoninnovationandglobalcollaborationforautono-mousvehicles.TheprizewaslinkedtoaprojectinwhichSemconisdevelopingsoftwaresystemsforautonomousvehiclesforaEuropeanautomotivemanufacturer.

• AttheendofMaySemconwasawardedanassignmenttosecureproductionofclimate-neutralelectricityinapro-jectrunbyFortum.TheprojectwilllastforthreeyearsandistheresultofSemcon’slong-termfocusintheenergysector.

Other, 18% (19)

Sweden, 50% (47)Germany, 32% (34)

Group sales per market Jan-June 2016


EmployeesTheheadcountonJune30was2,897(2,886)andthenumberofemployeesinactiveservicewas2,772(2,775).Intherespec-tivebusinessareastheheadcountisasfollows:EngineeringServicesNordic1,083(996),EngineeringServicesGermany874(997),EngineeringServicesInternational351(338)ochProductInformation589(555).MeasurestakenoverthepastyearinbusinessareaEngineeringServicesGermanyhaveresultedinafallinthenumberofemployees.

Ownership structure AsofJune30,JCEGroupowned25.9percent(22.2)ofSemcon’sshares,SwedbankRoburFonder8.4percent(8.4),Ålandsbanken5.1percent(1.1),NordeaInvestmentFunds5.0percent(6.3),andLänsförsäkringarSkåne4.4percent(-).Foreignownershipwas26.2percent(28.3)andthenumberofshareholderswas4,491(4,315).Thenumberofordinarysharesattheendoftheperiodwas18,112,534(18,112,534),allwiththequotientvalueofSEK1andequalvotingrights.Semconowned242,718(242,718)ofthecompany’sshareonJune30.SemconislistedasasmallcompanyontheNasdaqStockholmundertheSEMCticker.Semcon’slargestholders,ownershipstructureandsharepricemovementscanbefoundonpage13.

Incentive scheme TheAnnualGeneralMeeting,heldon28April2015,decidedtoestablishalong-termperformance-basedsharesavingsschemeforaround110seniorexecutivesandkeypersonnelintheSemconGroup.Thisschemerunsforfouryearsstar-tinginJuly2015andcoveringamaximumof242,718shares,correspondingto1.34%ofthetotalnumberofout-standingshares.

Acquisitions and divestmentsNoacquisitionsordivestmentshavetakenplaceduringtheperiod.

Risk and instability factors TheGroupandparentcompany’ssignificantrisksandinstabilityfactorsincludebusinessrisksintheformofhighexposuretowardsasingleindustryorcustomer.Anecono-micdownturnordisruptionstofinancialmarketscanhaveanegativeeffectontheGroup’sservices.Ingeneraltermsacquisitionsanddivestmentsincurincreasedrisks.Thisalsoincludesfinancialrisksmainlyconcerninginterestrateandcurrencyrisks.Semcon’sAnnualReport2015,pages47-48and61-62,includeadetaileddescriptionoftheGroupandparentcompany’sriskexposureandriskmanagement.

Accounting principles SemconfollowstheIFRSstandardsadoptedbytheEUanditsinterpretationsofthese(IFRIC).ThisInterimreporthasbeendrawnupinaccordancewithIAS34.AnumberofnewstandardsandIFRICstatementswereintroducedonJanuary1,2016.NoneofthesehavehadanyeffectontheGroup’saccountsovertheperiod.Ingeneral,thesameaccountingpoliciesandmethodsofcalculationhavebeenusedinthisreportasinthelatestAnnualReport.

Events after the end of the period Nosignificanteventsoccurredaftertheendoftheperiod.

Industry, 22% (20)

Life Science, 5% (5)Other, 2% (2)

Automotive, 66% (67)Energy, 5% (6)

Group sales per industry January-June 2016

4•SemconInterimreportJanuary-June2016

Engineering Services Nordic Thebusinessarea’ssalesamountedtoSEK588million(532).Adjustedforacquisitionsthiswasanincreaseof4%.Salestotheautomotiveindustryremainedgood,whiledemandfromenergycustomersespeciallywasatalowlevel.TheoperatingprofitamountedtoSEK22million(19),givinganoperatingmarginof3.7%(3.6).ActivitiesinNorwaynegativelyaffec-tedoperatingprofitovertheperiodbySEK5million(-).Thebusinessareahasdevelopeditsoffertobemorevaluebased.Thischangeandassociatedmeasuresareexpectedtoleadtoimprovedgrowthandprofitability.

About business area Engineering Services Nordic The business area’s around 1,100 employees provide services in areas such as product development, plant engineering and production development. The offer is aimed at requirement and concept studies, design, calculations, construction, embedded systems, testing, simulation, quality control, pro-ject management, production and process development and expertise in lean production. Business activities mainly focus on automotive, industry, energy and life science sectors in the Nordic region. Customers include ABB, AB Volvo, Alstom, AstraZeneca, Bombardier, CEVT, Geely, Fortum, General Electric, Getinge, Husqvarna, Metso, Rolls-Royce Marine, Saab, Scania, Siemens, Vattenfall and Volvo Cars.

Engineering Services Germany Thebusinessarea’ssalesamountedtoSEK459million(460),whichinlocalcurrenciesalsomeantvirtuallyunchangedinvoicing.TheoperatingprofitamountedtoSEK7million(-35),givinganoperatingmarginof1.5%(-7.7).Lastyear’sQ2wasnegativelyaffectedbyrestructuringcostsofSEK20million.Measuresweretakentostrengthenthecustomerofferandthenewbusinessstructureandorganisationnowinplacewillensuretheprerequisitesforgraduallyimprovingresults.Ger-manautomotivecustomersretainahighdemandfordeve-lopmentservices.

About business area Engineering Services Germany The business area’s around 900 employees provide services to customers primarily in the German automotive industry. The offer includes focusing on concepts, styling, design, calcula-tions, project management, prototyping, testing, simulations and small serial production. Customers include many of the world’s leading automotive manufacturers, such as Audi, BMW, Daimler, Opel/GM, Porsche, VW and also customers in other industries such as Sell and Vattenfall.

Business area

Engineering Services Germany 33% (34)

Engineering Services Nordic 42% (39)

Engineering Services International 7% (8)

Product Information 18% (19)

Share of Semcon’s total sale, %

Engineering Services Nordic 2016 2015 2016 2015 2015

Operatingincome,SEKm 309.2 265.6 588.0 532.2 1,008.7Operatingprofit,SEKm 15.2 3.9 21.8 19.1 30.5Operatingmargin,% 4.9 1.5 3.7 3.6 3.0No.ofemployeesatperiod’send 1,083 996 1,083 996 1,098

April–June Jan–June Jan–Dec

Engineering Services Germany 2016 2015 2016 2015 2015

Operatingincome,SEKm 226.6 215.2 459.1 459.8 900.8Operatingprofit/loss,SEKm 4.5 -40.2 7.1 -35.5 -48.6Operatingmargin,% 2.0 -18.7 1.5 -7.7 -5.4No.ofemployeesatperiod’send 874 997 874 997 957

Jan–JuneApril-June Jan–Dec


Engineering Services International Thebusinessarea’ssalesamountedtoSEK102million(105),whichwhenadjustedforcurrencyeffectsmeantanincreaseof8%.TheoperatingprofitwasSEK4million(2),givinganoperatingmarginof3.7%(1.9).ThemarketinBrazilremainsweak,whichresultedintheredundanciesof13employeesinQ1andmeantrestructuringexpensesofSEK1million(2)af-fectingtheoperatingprofit.InDecember2015anewagreementwassignedwithaglo-

balautomotivepartnerforautonomousvehiclesystems.ThisassignmentwillbemainlybasedinBrazilaspartofSemcon’sglobalstrategytoinvolvecutting-edgeexpertisefromdif-ferentcountriesinhightechdevelopmentprojects.Around10specialistsfromBrazilparticipateinthejointdevelopmentprojectinclosecollaborationwiththecustomer.

About business area Engineering Services International The business area’s around 350 employees in the UK, Brazil and India provide product- and production development ser-vices on respective markets. The offer is aimed at concept, design, calculations, construction, testing and simulation. Customers include a number of leading industrial companies such as AB Volvo, Aston Martin, Autoliv, BMW, General Electric, GKN, Jaguar Land Rover, Mahindra Reva, MAN, Mer-cedes Benz, Scania, Siemens, Volvo Cars and VW.

Product Information Thebusinessarea’ssalesamountedtoSEK259million(259),whichadjustedforcurrencyeffectsmeantanincreaseof3%.NewbusinessduringthesecondquartercompensatedforthefallindeliveriesinQ4lastyearfromthepartnershipwithJaguarLandRover.TheoperatingprofitwasSEK28million(19),givinganoperatingmarginof10.8%(7.5).Theoperatingprofitincludesapositiveeffectfromrecoveredwrite-downsofaccountsreceivableofSEK7million,ofwhichSEK2millionwasinthesecondquarter.Thebusinessarea’sstrategyisfocusedonmore,bigger

partnershipagreements,withtwosuchagreementsbeingsignedinQ2withCEVTandTheLondonTaxiCompany.TheCEVTagreementwillbeforproductinformationforanewmodelprogram.Theprojectwillatmostinvolvearound 40employeesandisexpectedtorununtiltheendof2017.Additionally,anagreementforaftermarketinformationwithaclearfocusondigitaltechnologyhasbeensignedwithTheLondonTaxiCompany.Theagreementwillrunforfiveyearsandinitiallyinvolvearound25employees.

About business area Product Information The business area’s around 600 employees provide complete information solutions with the primary focus on customers’ aftermarket business. The business area’s offer supports pro-ducts throughout the product life cycle: from sales and marke-ting to installation, diagnostics, maintenance, repairs, training material, as well as training service staff. Product Information has offices in Sweden, the UK, Germany, Hungary, China and Norway. Customers are mainly in the automotive, engineering, telecom and IT, energy and med-tech sectors. These include: ABB, AB Volvo, Baxter, Bombardier, CEVT, ESAB, Jaguar Land Rover, Saab, Siemens, The London Taxi Company, UniCarrier and Volvo Cars.

Engineering Services International 2016 2015 2016 2015 2015

Operatingincome,SEKm 52.4 51.4 102.0 105.2 200.8Operatingprofit,SEKm 3.2 1.3 3.8 2.0 6.5Operatingmargin,% 6.1 2.5 3.7 1.9 3.2No.ofemployeesatperiod’send 351 338 351 338 352

Jan–June April-June Jan–Dec

Product Information 2016 2015 2016 2015 2015

Operatingincome,SEKm 132.4 124.1 258.8 258.8 503.7Operatingprofit,SEKm 15.1 6.7 28.0 19.3 28.4Operatingmargin,% 11.4 5.4 10.8 7.5 5.6No.ofemployeesatperiod’send 589 555 589 555 529

April-June Jan–June Jan–Dec


TheBoardandthepresidentcertifythattheInterimreportprovidesanaccuratepictureoftheparentcompany’sandGroup’sactivities,positionandearnings,anddescribesthesignificantrisksanduncertaintiesfacingtheparentcompanyandGroupcompanies.

GöteborgJuly15,2016 SEMCONAB(PUBL)

MarkusGranlund PresidentandCEO

Jan-ErikKarlsson Boardmember

ChristerEriksson Employeerepresentative

ToreBertilsson Chairmanoftheboard

JeanetteSaverosBoardmember

MoniquePehrssonEmployeerepresentative

MarianneBrismarBoardmember

Karl Thedéen Boardmember

MatsSällberg Employeerepresentative

Thisreporthasnotbeensubjecttoreviewbythecompany’sauditors.ThisinformationisinformationthatSemconABisobligedtomakepublicpursuanttotheEUMarketAbuseRegulationandtheSecuritiesMarketsAct.

Theinformationwassubmittedforpublicationat11:30a.m.CETonJuly15,2016.


ConsolidatedFinancial, summary

Income statements

SEK m 2016 2015 2016 2015 2015

Operatingincome 699.7 632.2 1,365.8 1,309.4 2,557.4Purchaseofgoodsandservices -162.4 -125.7 -308.1 -263.0 -560.6Otherexternaloperatingexpenses -63.5 -62.6 -125.1 -122.6 -235.9Staffcosts -437.2 -467.2 -867.4 -907.4 1,730.0Operating profit before depreciation 36.6 -23.3 65.2 16.4 30.9

Depreciationoftangiblefixedassets -4.5 -4.6 -8.9 -8.6 -16.3Depreciationofintangibleassets -1.1 -0.6 -2.3 -2.1 -5.0Operating profit 31.0 -28.5 54.0 5.7 9.6

Netfinancialitems -1.0 -1.2 -1.9 -2.1 -4.3Profit before tax 30.0 -29.7 52.1 3.6 5.3

Tax -7.5 7.8 -13.0 -0.9 -1.8Profit after tax 22.5 -21.9 39.1 2.7 3.5

Profit attributable to:

Parentcompany’sshareholders 22.5 -21.9 39.1 2.7 3.6

Non-controllinginterests - - - - -0.1

Total profit after tax 22.5 -21.9 39.1 2.7 3.5

Earningspersharebeforedilution(SEK) 1.26 -1.22 2.19 0.15 0.20Earningspershareafterdilution(SEK) 1.24 -1.21 2.16 0.15 0.20

Numberofworkingdaysinperiod 61 59 122 121 250

Statement of comprehensive income

SEK m 2016 2015 2016 2015 2015

Profitaftertax 22.5 -21.9 39.1 2.7 3.5

Items that cannot be reclassified as profit or lossActuarialprofitsorlosses - - - - -3.4Tax - - - - 1.0Total - - - - -2.4

Items that can be reclassified as profit or lossTranslationdifferenciesfortheperiod 7.6 -3.0 8.2 -9.0 -17.9Hedgingofnetinvestments -6.7 1.9 -10.0 9.1 11.5Cashflowhedging - - 0.1 - 0.3Taxattributabletohedgingeffectsofnetinvestments 1.5 -0.4 2.2 -2.0 -2.6Total 2.4 -1.5 0.5 -1.9 -8.7

Other comprehensive income 2.4 -1.5 0.5 -1.9 -11.1

Total comprehensive income for the period 24.9 -23.4 39.6 0.8 -7.6

Comprehensive income attributabe to: Parentcompany’sshareholders 24.9 -23.4 39.6 0.8 -7.5Non-controllinginterests - - - - -0.1

24.9 -23.4 39.6 0.8 -7.6




Quarterly information by business area

2014 2015 2016Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q4 2015 Q1 Q2

Operating income (SEK m)EngineeringServicesNordic 275.3 259.2 209.7 269.5 1,013.7 266.6 265.5 206.1 270.4 1,008.7 278.8 309.2EngineeringServicesGermany 264.6 250.4 242.9 247.8 1,005.7 244.6 215.2 233.3 207.7 900.8 232.5 226.6EngineeringServicesInternational 50.5 51.9 53.7 56.5 212.6 53.8 51.4 49.2 46.4 200.8 49.6 52.4ProductInformation 126.5 127.9 124.2 163.8 542.4 134.7 124.1 128.5 116.4 503.7 126.4 132.4Groupitems/eliminations -12.8 -10.9 -18.3 -6.7 -48.7 -22.5 -24.1 -6.3 -3.7 -56.6 -21.2 -20.9Total 704.1 678.5 612.2 730.9 2,725.7 677.2 632.2 610.8 637.2 2,557.4 666.1 699.7

Operating profit/loss (SEK m)EngineeringServicesNordic 16.2 2.3 5.2 -4.3 19.4 15.2 3.9 2.3 9.1 30.5 6.6 15.2EngineeringServicesGermany 10.7 -4.8 10.7 3.5 20.1 4.7 -40.2 5.6 -18.7 -48.6 2.6 4.5EngineeringServicesInternational 1.1 -1.0 2.4 2.4 4.9 0.6 1.3 2.8 1.8 6.5 0.6 3.2ProductInformation 13.3 5.4 12.9 20.7 52.3 12.6 6.7 3.0 6.1 28.4 12.9 15.1Groupitems/eliminations 0.1 0.9 0.4 4.3 5.7 1.1 -0.2 -0.4 -7.7 -7.2 0.3 -7.0Total 41.4 2.8 31.6 26.6 102.4 34.2 -28.5 13.3 -9.4 9.6 23.0 31.0

Operating margin (%)EngineeringServicesNordic 5.9 0.9 2.5 -1.6 1.9 5.7 1.5 1.1 3.4 3.0 2.4 4.9EngineeringServicesGermany 4.0 -1.9 4.4 1.4 2.0 1.9 -18.7 2.4 -9.0 -5.4 1.1 2.0EngineeringServicesInternational 2.2 -1.9 4.5 4.3 2.3 1.1 2.5 5.7 3.9 3.2 1.2 6.1ProductInformation 10.5 4.2 10.4 12.6 9.6 9.4 5.4 2.3 5.2 5.6 10.2 11.4Total 5.9 0.4 5.2 3.6 3.8 5.1 -4.5 2.2 -1.5 0.4 3.5 4.4

Number of employeesEngineeringServicesNordic 1,085 1,058 1,071 1,038 1,038 1,017 996 1,011 1,098 1,098 1,079 1,083EngineeringServicesGermany 1,088 1,082 1,069 1,044 1,044 1,012 997 980 957 957 914 874EngineeringServicesInternational 343 357 359 359 359 344 338 345 352 352 354 351ProductInformation 526 535 551 549 549 562 555 528 529 529 554 589Total 3,042 3,032 3,050 2,990 2,990 2,935 2,886 2,864 2,936 2,936 2,901 2,897

Numberofworkingdays 62 58 66 62 248 62 59 66 63 250 61 61


Balance sheets

SEK m 2016 2015 2015

Assets Intangibleassets,goodwill 472.2 449.9 465.9Otherintangibleassets 17. 4 18.7 18.9Tangiblefixedassets 68.3 51.4 51.0Financialfixedassets - 16.8 -Deferredtaxrecoverable 60.2 54.9 61.3Accountsreceivable 390.2 395.0 433.1Accruednon-invoicedincome 229.5 259.8 108.2Othercurrentassets 70.4 73.3 71.7Cashandbankassets 46.8 54.9 126.1Total assets 1,355.0 1,374.7 1,336.2

Shareholders’ equity and liabilities Shareholders’equity 621.9 612.8 604.5Pensionsobligations 71.4 66.7 68.4Deferredtaxliabilities 34.5 34.9 28.9Interest-bearingshort-termliabilities 145.1 186.4 136.1Accountspayable 67.3 58.3 81.0Noninterestbearingcurrentliabilities 414.8 415.6 417.3Total shareholders’ equity and liabilities 1,355.0 1,374.7 1,336.2

June 30 Dec 31

Change in shareholders’ equity

SEK m 2016 2015 2015

Shareholders’equityatthestartoftheperiod 604.5 662.5 662.5Totalcomprehensiveincome 39.6 0.8 -7.6Acquisitionofownshares - -5.6 -5.6Share-basedremuneration 0.1 - 0.1Shareholderdividend -22.3 -44.9 -44.9Shareholders’ equity at the end of the period 621.9 612.8 604.5

June 30 Dec 31


Cash flow statements SEK m 2016 2015 2016 2015 2015

Cashflowfromcurrentactivitiesbeforechangeinworkingcapital 33.1 -29.5 58.2 -1.4 -0.7Changeinworkingcapital -56.7 -28.6 -97.9 -108.4 28.0Cash flow from current activities -23.6 -58.1 -39.7 -109.8 27.3

Investments -3.8 -6.6 -26.3 -22.8 -32.8Acquisitionsanddivestmentsofsubsidiaries - - - - 2.6Salesoffixedassets 0.2 0.3 0.2 0.3 0.4Cash flow from investment activities -3.6 -6.3 -26.1 -22.5 -29.8

Changeininterest-bearingliabilities 52.0 78.9 7.0 83.7 30.6Acquisitionofownshares - -5.6 - -5.6 -5.6Shareholderdividend -22.3 -44.9 -22.3 -44.9 -44.9Cash flow from financing activities 29.7 28.4 -15.3 33.2 -19.9

Cash flow for the period 2.5 -36.0 -81.1 -99.1 -22.4Cashandbankatthestartoftheperiod 43.6 93.1 126.1 152.3 152.3Translationdifference 0.7 -2.2 1.8 1.7 -3.8Cash and bank at the end of the period 46.8 54.9 46.8 54.9 126.1


Change in consolidated net debt

SEK m 2016 2015 2016 2015 2015

Openingbalance 118.6 76.4 78.4 14.0 14.0Cashflowfromoperatingactivities 23.6 58.1 39.7 109.8 -27.3Investments 3.6 6.3 26.1 22.5 32.4Acquisitionsanddivestmentsofsubsidiaries - - - - -2.6Shareholderdividend 22.3 44.9 22.3 44.9 44.9Acquisitionofownshares - 5.6 - 5.6 5.6Other 1.6 6.9 3.2 1.4 11.4Closing balance 169.7 198.2 169.7 198.2 78.4


Consolidated net debt

SEK m 2016 2015 2015

Interest-bearingliabilities 145.1 186.4 136.1Pensionsobligations 71.4 66.7 68.4Cashandbankassets -46.8 -54.9 -126.1Group 169.7 198.2 78.4

June 30 Dec 31


Key figures2016 2015

2015

Growthinsales(%) 4.3 -5.3 -6.2Organicgrowthinsales(%) 4.6 -7.1 -6.6Operatingmarginbeforedepreciation(%) 4.8 1.3 1.2Operatingmargin(%) 4.0 0.4 0.4Profitmargin(%) 3.8 0.3 0.2Returnonshareholders’equity(%)* 6.5 7.4 0.5Returnoncapitalemployed(%)* 7.0 7.4 1.1Equity/assetsratio(%) 45.9 44.6 45.2Debt/equityratio(multiple) 0.3 0.3 0.1Interestcoverratio(multiple) 13.5 31.1 2.4Numberofemployeesattheendoftheperiod 2,897 2,886 2,936

Key figures for the Semcon share 2016

2015

2015

Earningspersharebeforedilution(SEK) 2.19 0.15 0.20Earningspershareafterdilution(SEK) 2.16 0.15 0.20Shareholders’equitybeforedilution(SEK) 34.80 34.29 33.83Shareholders’equityafterdilution(SEK) 34.34 33.83 33.37Shareprice/shareholdersequitypershare(times) 1.02 1.49 1.27Cashflowfromcurrentactivities(SEK) -2.19 -6.05 1.51Sharepriceattheendoftheperiod(SEK) 35.10 50.25 42.40Marketvalueattheendoftheperiod(SEKm) 636 910 768Numberofsharesattheendoftheperiod withthequotientvalueofSEK1(000) 18,113 18,113 18,113Numberofownsharesattheendoftheperiod(000) 243 243 243Averagenumberofshares(000) 18,113 18,113 18,113

*Rolling12months

Jan-June

Jan-June

Jan–Dec

Jan–Dec

Definitions

Capital employedThebalancesheettotalminusnoninterest-bearingprovisionsandliabilities.

Cash flow per shareCashflowfromcurrentactivitiesdividedbytheweightedaveragenumberofoutstandingsharesovertheperiodadjustedforthedilutioneffectonpotentialshares.

Debt/equity ratioNetborrowingsdividedbyshareholders’equity.

Earnings per share (EPS) after dilutionProfit/lossaftertaxattributabletotheparentcompany’sownersdividedbytheaveragenumberofoutstandingsharesadjustedforthedilutioneffectofpotentialshares.

Earnings per share (EPS) before dilution Profit/lossaftertaxattributabletotheparentcompany’sownersdividedbytheaveragenumberofoutstandingordinarysharesexcludingsharesheldasownsharesbytheparentcompany.

Equity/assets ratioShareholders’equityasapercentageofthebalancesheettotal.

Interest cover ratioProfitbeforetaxplusinterestcostsdividedbyinterestcosts.

Net debtInterest-bearingprovisionsandliabilitieswithdeductionsforliquidassetsandinterest-bearingreceivables.

Operating margin Operatingprofitasapercentageofnetsales.

Profit marginProfitbeforetaxasapercentageofnetsales.

Return on shareholders’ equityProfitfortheperiodaftertaxdividedbytheaverageshareholders’equity.

Return on capital employedProfitbeforetaxplusfinancialcostsdividedbytheaveragecapitalemployed.

Shareholders’ equity per share before dilutionShareholders’equitydividedbythenumberofsharesatendoftheperiodexcludingsharesheldasownsharesbytheparentcompany.

Shareholders’ equity per share after dilutionShareholders’equitydividedbythenumberofsharesatendoftheperiodadjustedforthedilutioneffectonpotentialshares.


ParentcompanyFinancial, summary

SEK m 2016 2015 2016 2015 2015

Operatingincome 6.2 7.6 12.5 11.7 23.7Otherexternaloperatingexpenses -9.2 -6.0 -15.7 -11.4 -25.6Staffcosts -7.4 -7.9 -14.5 -14.8 -28.3Operating profit/loss -10.4 -6.3 -17.7 -14.5 -30.2

Netfinancialitems* -4.8 4.1 -7.0 13.1

59.3Profit/loss after net financial items -15.2 -2.2 -24.7 -1.4 29.1

Appropriations** - - - - -10.7Profit/loss before tax -15.2 -2.2 -24.7 -1.4 18.4

Tax 3.4 0.5 6.1 0.3 -4.8Profit/loss after tax -11.8 -1.7 -18.6 -1.1 13.6

*ofwhichtranslationdifferencies -5.4 3.4 -7.8 12.0 14.3ofwhichgroupcontributionreceived - - - - 42.6**ofwhichgroupcontributionpaid - - - - -3.6

SEK m 2016 2015 2016 2015 2015

Profit/lossfortheperiod -11.8 -1.7 -18.6 -1.1 13.6Othercomprehensiveincome - - - - -Total comprehensive income for the period -11.8 -1.7 -18.6 -1.1 13.6

Statements of comprehensive income

Income statements April-June Jan–June

April-June Jan–June

Jan–Dec

Jan–Dec

SEK m 2016 2015 2015

Assets Financialfixedassets 460.0 454.3 453.9Currentassets 128.4 167.8 154.8Total assets 588.4 622.1 608.7

Shareholders’ equity and liabilities Shareholders’equity 274.6 300.7 315.5Untaxedreserves 7.1 - 7.1Interest-bearingcurrentliabilities 144.2 187.5 137.5Noninterest-bearingcurrentliabilities 162.5 133.9 148.6Total shareholders’ equity and liabilities 588.4 622.1 608.7

Balance sheets June 30 Dec 31


Share

20

30

40

50

60

70

80

2,000

1,000

Num

ber of traded shares (000)

2011 2012 2013 2014 2015 2016

OMX Stockholm_PI

Price trend

Source:NasdaqStockholmonJune30,2016.

Semcon’s 10 largest holders June 30, 2016

Name No.ofshares Votes,%

JCEGroupAB 4,682,991 25.9SwedbankRoburFonder 1,521,764 8.4Ålandsbanken 922,360 5.1NordeaInvestmentFunds 913,945 5.0LänsförsäkringarSkåne 799,066 4.4CBNY-NorgesBank 587,754 3.2DnBCarlsonFonder 564,495 3.1EuropeaiMalmöAB 432,090 2.4AvanzaPension 371,387 2.1MellonOmnibus 255,813 1.4Total 11,051,665 61.0Ownshares 242,718 1.3Others 6,818,151 37.7Total 18,112,534 100.0

Source:EuroclearSwedenABRegisterofshareholdersonJune30,2016.

Ownership structure June 30, 2016

Shareholder spread No.of

shareholders No.of shares

Propor- tion,%

Marketvalue SEK (000)

1-500 3,140 497,767 2.8 17,472501-1,000 636 532,667 2.9 18,6971,001-10,000 622 1,874,451 10.4 65,79310,001-100,000 72 2,328,913 12.9 81,745100,001- 20 12,636,018 69.7 443,524Ownshares 1 242,718 1.3 8,519Total 4 ,491 18,112,534 100.0 635,750

Source:EuroclearSwedenABRegisterofshareholdersonJune30,2016.

Contact personsMarkusGranlund,CEOSemconAB,+46-31-7210306 BjörnStrömberg,CFOSemconAB,+46-31-7210306

Contact information SemconAB(publ) 41780Göteborg,SwedenVisitingaddress:Lindholmsallén2 41780Göteborg,SwedenSwitchboard:+46-31-7210000www.semcon.com

Financial calendar InterimreportJan-Sept:October27,2016 Year-endreport2016:February9,2017

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