Q2 report Q2 report

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2 Highlights New management, new board, new agenda New financial solution in progress Rights issue to be suggested Optimised international structure Exit from China Exit from Romania The Nordics is strategic choice

3 Q SEK million Q Q Sales Employees 1,387 1,695 EBITDA EBITDA % 0.8% -5.8% EBIT * EBIT % -4.9% -43.5% Cash flow EPS Equity/assets ratio 56.5% 57.0% Closing Romania, total restructuring cost of SEK 5 million burdens EBITDA Divestment of Chinese operation gave SEK 11.7 million in capital loss burdens EBIT * Impairment loss of SEK 135 million due to Nokia burdened EBIT

4 Sales & EBITDA RTM

5 Cybercom history 2006 Cybercom was a medium-sized, Stockholm-focused IT consultant among many others, but with a strong acknowledgement within telecoms The aquisitions of ausystems and Plenware were based on a strategic belief in the importance of increasing size, and of offshore capacity. Plenware also added Finland and Nokia Major cutbacks due to high exposure to single clients still within the telecom segment, also price pressure in the economic slowdown. A scattered operation, as the acquired units were not fully integrated, became a weakness in the downturn 2009 and a negative trend started with decreased profitability and cash flow. The goodwill and the loan situation became a burden. Global sourcing as business model was not beneficially utlilised as planned. Sales growth of approximately SEK 535 million in 2006 to SEK 1,480million in 2011 Net debt of 660 MSEK 2007 to 150 MSEK China - Romania

6 Actions taken for turn around 1. Nordic strategic focus 2. Optimising the global structure Exit China and Romania Focusing on one offshore country, India and one nearshore country, Poland 3. Becoming more efficient Integration of Swedish business areas Reducing offices and costs in Sweden Less overhead in International 4. Investing in employees and culture Sales programme for focused and effective sales Appointed HR-director 5. Started a refinancing process

7 Long term solution for financial stability New loan terms aligned with Cybercom s current situation and macroeconomic development New overdraft facility replacing today s factoring solution A rights issue of SEK 125 million suggested. The company's major shareholders, JCE Group and others, representing about 43 percent of the shares has announced their intention to subscribe for their pro-rata shares One time amortization of SEK 50 million

8 Sales highlights in Q2 Won a vendor management contract with a leading telecom operator in West Africa, USD 3.3 million 4G project for M1, major operator in Singapore Develop and maintain a productions support system for DrGerard, a company in the food industry An electricity demand management system for Skapat Energia System for simulation of manufacturing costs worldwide for a telecom client The ten largest clients 45% (45) of sales The biggest single client 11% (12) of sales Framework-agreement clients 47% (54) Turnkey assignments 38% (42) Major clients Alma Media Group, Ericsson, H&M, Millicom, MTV Media, SAAB AB, Sony, ST Ericsson, TeliaSonera, and AB Volvo

9 Segment Sweden SEK million Q Q Sales Employees 932 1,006 EBITDA EBITDA, % 4.8% -0.3% Stable market, no remarkable changes since Q1 Growing business with FMW, Volvo, SAAB Effect from decreasing a major AM-project with blended delivery Utilisation not satisfactory in some units Continued high use of sub-consultants Integration of two business areas and decrease in number of offices to cut cost Sales force strengthened Sweden 76% Finland 16% International 8%

10 Segment Finland SEK million Q Q Sales Employees Restructuring cost EBITDA EBITDA, % -4.8% -3.8% Operation still in turn around mode Decrease in sales due to 2011 downsizing from Nokia assignment Exit from Romania started and moving projects to India or Poland; restructuring cost of SEK 5 million burdens EBITDA Business climate still uncertain due to macro economics Strengthened position within industry and media, growing at Kone, Sandvik, Outotec and MTV Media Sweden 76% Finland 16% International 8%

11 Segment International SEK million Q Q Sales Employees EBITDA EBITDA, % -13.9% -17.7% Divestment of Chinese operation in June gave a capital loss of SEK 11.7 million burden Group EBIT Actions to decrease administration costs Singapore operation still weak but order intake improving Denmark business climate still challenging and a change in management Poland on good profitability track Sweden 76% Finland 16% International 8%

12 Way forward

13 2012 Time for change New Chairman since AGM 2011 New CEO since March 1, 2012 New CFO since May 1, 2012 New strategy New management team Change Management Turn-Around agenda Strategy into action since May 2012 Meeting long term goals

14 The Nordics - our strategic markets We will treat Nordic markets as our home market and prioritise growing in the Nordics We will serve the connected world customers selectively outside Nordic markets We exit non-core markets and low performing markets In the new foundation we build new home markets, i.e. Poland We will use business model blended delivery as key for improved profitability

15 Strategic choices of business domains Connected engineering Connectivity management Digital solutions Definition: Software and selected hardware design, development and maintenance for customers products Consulting services for managing the connectivity ( smart pipe ) between the devices and services Enterprise IT and web solutions design, development and maintenance Business logics: Designing and adding needed intelligence to customer products/ devices Assuring the connectivity, making it efficient and manageable Providing people and devices future connected-world solutions Target customers: Telecom infrastructure manufacturers Mobile device manufacturers Automotive companies Other industrial manufacturers Telecom operators Broadband access players Utilities Other service providers Selected verticals, such as telecom, public, energy, banking & finance, retail, media, logistics, insurance, manufacturing Approx. revenue

16 Potential in connectivity business Platform Developers Apple Samsung Qualcomm Intel ST Ericsson TI Google, Nokia RIM Microsoft Linux foundation Infrastructure Ericsson Nokia-Siemens Cisco Akamai RedHat HP Operators TeliaSonera Telenor Tele2 China Mobile Millicom 3 Content Providers AlmaMedia Sony SF SVT TV4 MTV3 Gracenote Facebook Twitter Device Manufacturers Nokia Apple Sony Ericsson HTC LG ZTE Samsung Doro Sandvik Kone Volvo Bosch Application & Service Developers AlmaMedia Handelsbanken Vägverket SMHI Apello Scalado

17 Cybercom s way forward 1. Way of working Decentralised Integrated We will be an integrated company with unified ways of working. 2. Business portfolio Fragmented Focused on few businesses We will have a more focused business portfolio with fewer, larger businesses. 3. Client portfolio Dependent on few clients and verticals Balanced client portfolio We will reduce our relative dependency on telecom by growing other segments. 4. Client footprint Narrow client footprint Broad client footprint We will increase our footprint within our clients through crossselling and end-to-end services. 5. Nature of services Competence (CV) Packaged services We will have more packaged and outsourcing services. Current position Future position

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