Corporate Governance

Presidents Statement

Further progress towards the 5% target margin

I am proud to once again be able to report a positive earnings trend. This excellent development means that we made further progress towards the company’s 5% target margin, profit before tax, during the third quarter.

Profit before tax for the quarter amounted to SEK 28.3 million, representing an increase of 19% compared with the corresponding period last year. This means that the company’s margin, profit before tax, amounts to 4.8%. Earnings trend has been achieved mainly by continuing to focus on improvements and streamlining in respect of the service operation, good cost control and greater emphasis on leveraging the strength of the group to increase efficiency.

Our specialist expertise and market-leading offering with regard to Datacenters and cloud services are very much appreciated by both new and existing customers. As a result, revenues for service operations have developed positively throughout the period and amounted to SEK 244 million, representing an increase of 8%. Service revenues relating to cloud services have also developed positively and amounted to SEK 91 million, representing an increase of 26%. System revenues amounted to SEK 349 million, representing a fall of 10%. This decline is attributable primarily to Business Unit Nordics, where fewer major system sales con-tracts with lower margins were concluded during the period.

We are continuing to work on developing the company according to our established strategy. To improve profitability, one element of our strategy involves increasing the percentage of contracted revenues. We will achieve this by further reinforcing the company’s offering, mainly within the field of support and cloud services. We have successfully implemented a number of customer projects in the above fields during the quarter. Examples of projects implemented can be found in the section entitled “Events during the quarter”.

Another element of our strategy involves working as “One Proact”. This involves using well-defined processes and procedures to create a consistent, cost-effective organization, thereby ensuring that we have a clear, high-quality offering for the market. Our innovative capability is key when it comes to ensuring that the com-pany develops well over time. Our established innovation process ensures ongoing development of new ser-vices and evaluation of new technologies. This in turn means that new services and technologies can be launched in a more time-efficient and cost-effective way throughout the entire company. This allows us to supply flexible services and solutions which quickly add sustainable and long-term value for our customers.

Overall, it is clear to me that the initiatives implemented in fields such as service operations, business stream-lining and innovation are continuing to pay off, making us even more competitive. Our ability to help our customers to minimize risks and reduce costs, and also to supply flexible IT services and products, places us in a strong position on the European market, giving us good opportunities for continued positive development in terms of both earnings and profits.

Jason Clark

CEO

 

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