Proact IT Group — Interim / Quarterly Report 2012

Oct 24, 2012

INTERIM REPORT January - September 2012

Acquisitions starting to have the intended effect

Nine months in brief

• Income increased by 12 % to SEK 1 721 (1 533) million.
• EBITDA increased by 26 % to SEK 105.7 (83.9) million.
• Profit before tax increased by 50 % to SEK 43.8 (29.2) million.
• Profit after tax increased by 46 % to SEK 31.1 (21.3) million
• Profit per share increased by 60 % to SEK 2.88 (1.80).
• Return on equity over the last 12 months amounted to 18.5 (23.4) %.

The third quarter in brief

• Income fell by 7 % to SEK 487 (527) million.
• EBITDA increased by 5 % to SEK 37.3 (35.4) million.
• Profit before tax increased by 1 % to SEK 15.9 (15.8) million.
• Profit after tax fell by 13 % to SEK 10.9 (12.5) million
• Earnings per share amounted to SEK 1.16 (1.16).

About Proact

Proact is Europe's leading independent integrator in the fields of data storage and cloud solutions. Proact supplies business benefits by helping companies and authorities the world over to reduce risk and costs, and above all, to supply flexible, accessible and secure IT services.

Proact solutions cover all elements of data storage, including virtualisation, network functions and security, and the company has more than 3 500 successful projects behind it, along with vast information volumes which are managed at the Proact data centre.

The Proact Group has more than 680 employees and conducts business in Belgium, Denmark, Estonia, Finland, Latvia, Lithuania, the Netherlands, Norway, Slovakia, Spain, the United Kingdom, Sweden and the Czech Republic. Proact was founded in 1994. Proact IT Group AB (publ), its Parent Company, has been listed on the Nasdaq OMX Stockholm since 1999 under the symbol PACT.

For further information about Proact's activities please visit us at www.proact.se

Report by Olof Sand, Managing Director of Proact

Proact is generating better earnings than in the same period last year thanks to an increase in sales and margins within its service operations. Operating profit (EBITDA) amounted to SEK 37.3 million, which is a 5 % increase on the same period last year. Profit before tax amounted to SEK 15.9 million, which is equivalent to a margin before tax of 3.3 per cent.

Acquisitions are starting to have the intended effect. Service sales have increased by 5 %, and new contracts relating to cloud services worth SEK 38 million have been entered into. Income from cloud services is distributed over the term of each contract –a period of three to five years – unlike traditional system sales, where the income is posted to income during the period. System sales have been adversely impacted during the third quarter, mainly in Denmark and Finland. This is due mainly to the fact that many customers have had a longer decision-making process for major investments in new storage systems: this is a tendency which we also saw during the second quarter.

Proact has been investing in its service operations for a long time now with a view to increasing the proportion of contracted services and thereby to creating a stable, long-term income base. This income will also help the company to achieve its long-term profitability target. Support services have constituted a significant element of contracted income ever since Proact was formed. Proact has invested in cloud services over the past few years in order to meet the demands of customers. These cloud services are being supplied by Proact Managed Cloud Services (MCS) to all markets in which Proact is active. The investment in cloud services has affected profits by around SEK 15 million over the first nine months of the year, and the investment is now starting to have the intended effect on revenues.

Analysis company Gartner is still of the opinion that digital information volumes are growing by more than 50 % per annum, which is creating greater complexity at the data centres. Although some companies are holding off on decisions to invest, the need for new investments will increase over time. For Proact, the important thing is to express clearly the savings that its customers can achieve with their respective investments in all situations. The investments that create specific streamlining benefits will be given priority, thus allowing Proact to benefit.

MARKET REVIEW

Analysis company Gartner is still of the opinion that digital information volumes are growing by more than 50 % per annum, which is creating greater complexity at the data centres. Gartner is also seeing the IT departments of companies and authorities focusing more intently on the leaking of confidential, business-critical information.

These issues are taking on ever more importance as trends such as the demand for simplicity and mobility are on the increase among users. A few years ago, it was hard for users to circumvent their internal IT departments and deviate from internal regulations. Nowadays they can do just that using simple cloud services. This means that internal corporate information and confidential information is being stored outside of companies' and authorities' own data centres, with no control.

In combination with increasing data volumes, this constitutes one of the greatest challenges which IT departments face. In this regard, Gartner is expecting to see an increase in interest among companies and authorities in respect of secure cloud services as a way of dealing with these challenges. Gartner predicts that by 2015, 35 % of corporate IT budgets will be invested in secure cloud services which their own IT departments are not supplying.

Proact is already seeing an increase in demand from the larger countries in which the company is represented and is anticipating more interest in future. Proact is in an excellent position to handle this development, thanks to the investments made over the past few years.

FINANCIAL OVERVIEW

Over the nine months of 2012, Proact's revenues amounted to SEK 1 721 (1 533) million, representing an increase of 12 %; or 12 % adjusted for currency effects. Organic growth amounted to 0 %, or 0 % adjusted for currency effects.

Service sales have increased by 16 %, and new contracts relating to cloud services worth SEK 88 million have been entered into. Income from cloud services is distributed over the term of each contract –a period of three to five years – unlike traditional system sales, where the income is posted to income during the period.

As Proact is steering sales towards cloud services, system sales have weakened over the period.

Future contracted cash flows from Proact Finance amount to SEK 96 (82) million, representing an increase of 17 % compared with the corresponding period in the previous year.

Over the third quarter, revenues amounted to SEK 487 (527) million, representing a decrease of 7 %; or a decrease of 3 % adjusted for currency effects. Revenues in West and North have been adversely affected over the quarter due to weak development in Denmark and Finland.

Revenues per	Jan	Jan	Jul-Sep	Jul-Sep
Business Unit	Sep	Sep	2012	2011
	2012	2011
West	698	557	198	233
North	688	693	175	208
Benelux and Spain	247	217	74	68
East	112	85	45	32
Proact Finance	54	21	25	8
Groupwide	-78	-40	-30	-22
Revenues	1 721	1 533	487	527

Of total revenues over the first nine months of the year, system sales amounted to SEK 1 149 (1 040) million, representing an increase of 10 % compared with the same period last year. Revenues for service operations amounted to SEK 569 (490) million, representing an increase of 16 %.

System sales over the third quarter amounted to SEK 297 (346) million, a reduction of 14 % compared with the same period last year. The weak development in Denmark and Finland is due mainly to system sales.

Revenues for service operations amounted to SEK 190 (180) million, representing an increase of 5 %.

Agreements worth SEK 38 million relating to cloud services and with terms of three to five years have been entered into over the quarter.

Turnover per operating segment	Jan Sep 2012	Jan Sep 2011	Jul-Sep 2012	Jul-Sep 2011
System sales Service operations Other revenue	1 149 569 3	1 040 490 3	297 190 -	346 180 1
Revenues	1 721	1 533	487	527

Major deals in the third quarter:

A number of major deals have been entered into over the past quarter with organisations such as GN Resound, the municipality of Hedenstad and Dansk Arkitektur Center in Denmark; Aditro Oy and the University of Oulu in Finland; Estonian Public Broadcasting in Estonia; Telefonica Group in Spain; Aker, Arrive, RWE Dea, Creuna, ConocoPhilips and Statoil in Norway; Com Hem, Evry, Telia and Grafia in Sweden; law firm DWF in the United Kingdom; and NDC Mediagroep in the Netherlands.

Important events in the third quarter

Proact enters into agreement regarding virtualised infrastructure and cloud services for Grafia

Grafia is one of Sweden's leading companies in the field of model and product photography, supplying photos to companies such as Kappahl, Brothers, Lindex and MQ. In order to meet Grafia's demands and requirements in terms of greater flexibility and performance, Grafia has entered into an agreement with Proact relating to investment in a new, virtualised storage infrastructure. This agreement also involves Proact standing responsible for the backup of business-critical applications. Backups will be made to the Proact data centre on the basis of the company's "Backup-as-aservice" cloud service; giving Grafia greater redundancy and reliability in case information needs to be restored.

Innovation award for Proact

Proact won the "NetApp Service Provider Innovation Award" over the quarter. Proact won this award thanks to its leading position as a storage supplier and provider of cloud services in Europe. Supplying new services such as cloud services based on NetApp technology, among other things, Proact is demonstrating in an innovative fashion just how NetApp technology can be used for the rapid launch of new services. Proact has launched a number of cloud services over the year in the field of storage and archiving.

Law firm DWF switches to Proact cloud services to support rapid growth

As the company has expanded, so its need for a reliable, cost-effective storage and backup environment has increased. DWF has entered into an agreement with Proact relating to the supply of a new storage solution which will be provided in the form of a cloud service, based on the "Storage-as-a-service" cloud service. DWF has also achieved greater flexibility thanks to this investment in the cloud service, as its storage capacity is called off as the company grows and its need for storage changes. It is estimated that DWF will achieve savings of SEK 5 million over the agreement period.

NDC Mediagroep chooses Proact's Hybrid model for greater flexibility

Proact has revived the infrastructure of NDC Mediagroep in order to increase uptime and enhance reliability and performance. Among other things, this agreement includes a new infrastructure for primary storage and the backup of business-critical applications. Backups will be made to the Proact data centre on the basis of the company's "Backup-as-aservice" cloud service; giving NDC Mediagroep greater redundancy and reliability in case information needs to be restored. NDC Mediagroep is meeting the demands and requirements of the company in terms of IT services thanks to this new infrastructure and cloud service. This agreement also includes implementation of the new infrastructure and Proact Premium Support.

Proact MCS wins award thanks to Probox advanced cloud services

NetApp has named Proact "NetApp Solution Partner of the Year" over the quarter. Proact won this award thanks to its commitment to customers, and also because the company offers outstanding expertise and an ability to always remain at the cutting edge of development. One outstanding example of this is the launch of the Probox cloud service, a secure, scalable file sharing service for companies and authorities.

Comprehensive income

Operating profit before depreciation, EBITDA, for the first nine months of 2012 amounted to SEK 105.7 (83.9) million, representing an increase of 26 %. Profit before tax amounted to SEK 43.8 (29.2) million for the same period, representing an increase of 50 %. EBITDA over the third quarter amounted to SEK 37.3 (35.4) million, representing an increase of 5 %. During the period, profit before tax amounted to SEK 15.9 (15.8) million.

Development has generally been good for North. However, system sales have been weak in Finland, which has had a negative impact on revenues.

West is delivering considerably improved results compared with last year. This is due mainly to the fact that the business acquired in the United Kingdom has developed well, in addition to positive profit development in Denmark. Profitability for service operations has also improved.

East is delivering considerably better results compared with last year. This is due to good development in all Baltic countries. The Czech Republic has also developed well.

Investment in additional sales resources in Belgium has continued to impact negatively on the results for the Benelux countries and Spain. However, this investment is expected to result in positive effects in the fourth quarter of 2012. Spain has also seen weak development over the period.

Proact Finance is developing according to plan.

Profit before tax per Business Unit	Jan Sep 2012	Jan Sep 2011	Jul-Sep 2012	Jul-Sep 2011
North West	25.5 24.0	33.4 4.2	10.2 4.2	12.8 1.0
East	4.1	-4.3	3.3	-0.1
Benelux and Spain	-2.2	6.7	-0.7	1.9
Proact Finance	-0.5	-1.7	0.0	-0.6
Groupwide	-7.1	-9.1	-1.1	0.8
Comprehensive income	43.8	29.2	15.9	15.8

Balance sheet and cash flow

Cash and equivalents amounted to SEK 29 million on 30 September 2012. Of total bank overdraft facilities of SEK 159 million, SEK 61 million has been utilised. Bank loans amount to SEK 163 million, SEK 23 million of which will fall due for repayment within 12 months. Contract borrowing is being used to finance Proact's finance company.

Financial position	30 Sep 2012	30 Jun 2012	31 Dec 2011	30 Sep 2011
Cash and cash equiv alents	29	22	70	60
Bank overdraft facili ties	-61	-29	-3	-14
Liabilities to credit institutions	-163	-176	-185	-190
Contract borrowing	-26	-24	-21	-20
Net cash/net liability	-221	-207	-139	-164
Unutilised bank
overdraft facilities	98	111	137	126
Total bank overdraft
facilities	159	140	140	140

Cash flow amounted to SEK -38.2 million over the first nine months of the year, of which SEK 30.3 million was from operating activities. Payment of the balances on purchase prices relating to acquisitions which have taken place have had an adverse impact on cash flow for the period amounting to SEK 60.6 million, while dividends totalling SEK 9.7 million have also been paid. Investments in tangible fixed assets amount to SEK 45.5 (59.6) million, attributable mainly to Proact Finance and operations.

Cash flow amounted to SEK 9.8 million over the third quarter, of which SEK -3.1 million was from operating activities.

The Group's equity ratio at the end of the period was 17 (15) %. The equity ratio was 14 % as at 31 December 2011.

Buy-back of own shares

At the Annual General Meeting held on 07 May 2012, the Board of Directors was authorised to acquire up to 10 % of the company's shares by the next Annual General Meeting. Up to and including 30 September 2012, no shares have been bought back under this authorisation. The company holds 23 618 shares in its own custody as at 30 September.

Employees

The average number of annual employees over the first nine months amounted to 643 (548), and 647 (619) over the third quarter.

On 30 September, the company employed 684 (629) people.

The parent company in brief

The Parent Company's revenues for the first nine months of the year amounted to SEK 46.4 (43.9) million and to SEK 14.6 (15.3) million for the third quarter. The profit before tax for the

For further information, please contact:

nine-month period amounted to SEK 28.0 (- 2.6) million, and to SEK 7.3 (1.9) million for the third quarter.

The parent company's liabilities in a joint group currency account amounted to SEK 191.4 (111.1) million as at 30 September.

At the end of the period, the number of persons employed by the parent company totalled 12 (9).

The Parent Company's operations have remained unchanged over the period. There have been no significant transactions with related parties.

OTHER INFORMATION

No closely related transactions, risks or uncertainty factors have altered, by comparison with those commented upon in the last Annual Report issued.

This interim report has not been audited.

Forthcoming reports

14 Feb 2013	Year-end report 2012
7 May 2012	Interim report, Q1 2013 plus
	Annual General Meeting
12 July 2011	Half-yearly report 2013
22 Oct 2013	Interim report, Q3 2013
13 Feb 2014	Year-end report 2013

Olof Sand, Managing Director Telephone: +46 (0) 8 410 666 82 E-mail: olof.sand@proact.eu Mikael Suvero, IR Telephone: +46 (0) 8 410 666 55, e-mail: mikael.suvero@proact.eu Jonas Persson, CFO Telephone: +46 (0) 8 410 666 90, e-mail: jonas.persson@proact.eu

The information in this interim report is such information as Proact IT Group (Publ) shall publish in accordance with lagen om värdepappersmarknad, the Securities Market Act, and/or lagen om handel med finansiella instrument, the Act on Trading in Financial Instruments. This information was submitted for publication at 13:00 (CET) on 23 October 2012.

Kista, 23 October 2012

Proact IT Group AB (publ)

Olof Sand Managing Director

FINANCIAL REPORTS (SEK millions)

Consolidated statement of comprehensive income

	Note	3 mths Jul-Sep 2012	3 mths Jul-Sep 2011	9 mths Jan-Sep 2012	9 mths Jan-Sep 2011	12 mths Oct-Sep 2011/2012	12 mths Jan-Dec 2011
System income Service income		297.2 189.9	346.3 179.7	1 148.5 569.6	1 040.6 489.8	1 652.6 762.2	1 544.7 682.4
Other revenue		0.3	0.5	3.2	2.9	5.0	4.7
Total income	3	487.4	526.5	1 721.3	1 533.3	2 419.8	2 231.8
Cost of goods and services sold		-362.8	-394.3	-1 308.0	-1 173.7	-1 851.4	-1 717.1
Gross profit		124.6	132.2	413.3	359.6	568.4	514.7
Sales and marketing expenses		-66.7	-69.1	-247.3	-199.5	-344.1	-296.3
Administration expenses		-39.1	-44.6	-115.1	-123.5	-155.4	-163.8
Operating profit/loss, EBIT	4	18.8	18.5	50.9	36.6	68.9	54.6
Net financial items		-2.9	-2.7	-7.1	-7.4	-12.4	-12.7
Profit before tax		15.9	15.8	43.8	29.2	56.5	41.9
Income tax	5	-5.0	-3.3	-12.7	-7.9	-17.3	-12.5
Comprehensive income for the period	6	10.9	12.5	31.1	21.3	39.2	29.4
Other comprehensive income
Hedging of net investment in foreign operations		0.4	-0.4	0.1	-0.4	0.1	-0.4
Tax effect of hedging of net investment in foreign operations		-0.1	0.1	0.0	0.1	0.0	0.1
Translation differences		-8.3	-2.3	-11.1	3.4	-15.3	-0.8
Total comprehensive income for the period		2.9	9.9	20.1	24.4	24.0	28.3
Profit for the period attributable to:
Parent company's shareholders		10.8	10.8	26.8	16.6	35.0	24.8
Holdings without a controlling influence		0.1	1.7	4.3	4.7	4.2	4.6
Total comprehensive income for the period attributable to:
Parent company's shareholders		3.1	8.3	16.1	19.7	20.1	23.7
Holdings without a controlling influence		-0.2	1.6	4.0	4.7	3.9	4.6

Data per share

	3 mths Jul-Sep 2012	3 mths Jul-Sep 2011	9 mths Jan-Sep 2012	9 mths Jan-Sep 2011	12 mths Oct-Sep 2011/2012	12 mths Jan-Dec 2011
Profit per share for the period pertaining to the Parent Com pany's shareholders, SEK	1.16	1.16	2.88	1.80	3.77	2.69
Equity per share, SEK	21.88	21.67	21.88	21.67	21.88	22.11
Cash flow from current opera tions per share, SEK	-0.33	6.70	3.25	13.22	7.84	17.81
Number of shares at the end of the period excluding bought back shares, units	9 310 268	9 281 090	9 310 268	9 281 090	9 310 268	9 281 090
Weighted average number of shares excluding bought-back shares, units	9 310 268	9 229 557	9 310 268	9 196 243	9 300 542	9 217 455

Proact has not issued any share options or conversion rights which could give rise to dilution.

Key ratios and figures

	3 mths Jul-Sep 2012	3 mths Jul-Sep 2011	9 mths Jan-Sep 2012	9 mths Jan-Sep 2011	12 mths Oct-Sep 2011/2012	12 mths Jan-Dec 2011
Total income, SEK millions
	487	526	1 721	1 533	2 420	2 232
EBITDA, SEK millions	37.3	35.4	105.7	83.9	143.2	121.5
EBITDA margin, %	7.7	6.7	6.1	5.5	5.9	5.4
EBITA, SEK millions	24.2	23.4	67.3	50.5	91.4	74.6
EBITA margin, %	5.0	4.4	3.9	3.3	3.8	3.3
EBIT, SEK millions	18.8	18.5	50.9	36.6	68.9	54.6
EBIT margin, %	3.9	3.5	3.0	2.4	2.8	2.4
Profit before tax, SEK millions	15.9	15.8	43.8	29.2	56.5	41.9
Net margin, %	3.3	3.0	2.5	1.9	2.3	1.9
Profit after tax, SEK millions	10.9	12.5	31.1	21.3	39.2	29.4
Profit margin, %	2.2	2.4	1.8	1.4	1.6	1.3
Equity ratio, %	16.9	15.2	16.9	15.2	16.9	14.3
Capital turnover rate, times	0.4	0.4	1.2	1.4	1.8	1.9
Return on equity, %	5.1	6.2	14.5	10.7	18.5	14.7
Return on capital employed, %	4.3	4.4	11.9	12.0	16.0	18.4
Investments in property, plant and equipment, SEK millions	13.8	17.9	45.5	59.6	59.0	73.1
Profit before tax per employee, SEK thousands	24	25	68	53	91	74
Average number of employees on annual basis	647	619	643	548	623	568

For a five-year review, see Note 8. Definitions of key ratios and figures are set out in the Annual Report for 2011 and Note 9.

Consolidated Balance Sheet

	Note	2012 30 Sep	2012 30 Jun	2012 31 Mar	2011 31 Dec	2011 30 Sep
ASSETS
Fixed assets
Goodwill		251.9	259.5	255.6	256.7	253.9
Other intangible non-current assets	4	140.9	151.4	155.1	161.2	166.9
Tangible fixed assets	4	107.2	120.4	116.4	119.3	129.1
Other long-term receivables		52.8	41.8	36.6	39.3	24.8
Deferred tax receivables	5	30.3	31.3	30.4	28.7	28.0
Current assets
Inventories		22.0	24.5	35.0	36.9	38.5
Trade and other receivables		629.8	745.2	831.8	793.4	682.2
Cash and cash equivalents		29.1	22.2	29.1	70.4	60.4
Total assets		1 264.0	1 396.3	1 490.0	1 505.9	1 383.8
EQUITY AND LIABILITIES
Equity pertaining to the Parent Company's sharehold ers		203.7	200.6	216.7	205.2	201.2
Equity pertaining to holdings without a controlling influence		9.8	10.1	12.0	9.6	9.3
Equity, total		213.5	210.7	228.7	214.8	210.5
Long-term liabilities
Provision		1.5	1.2	1.2	1.2	1.1
Long-term, interest-bearing liabilities		149.2	160.0	169.7	171.2	192.3
Long-term, non-interest bearing liabilities		30.3	31.4	31.9	31.9	42.1
Deferred tax liabilities	5	38.4	41.0	41.6	43.2	45.5
Current liabilities
Short term, interest bearing liabilities		100.3	69.2	40.1	38.3	31.6
Short term, non-interest bearing liabilities		730.8	882.8	976.8	1 005.3	860.7
Total equity and liabilities		1 264.0	1 396.3	1 490.0	1 505.9	1 383.8

Consolidated cash flow statement (summary)

	3 mths Jul-Sep 2012	3 mths Jul-Sep 2011	9 mths Jan-Sep 2012	9 mths Jan-Sep 2011	12 mths Oct-Sep 2011/2012	12 mths Jan-Dec 2011
Comprehensive income for the period	10.9	12.5	31.1	21.3	39.2	29.4
Adjustment for items not included in cash flow:
Depreciations and write-downs, fixed assets	18.5	16.7	54.8	47.4	74.4	67.0
Other adjustments	8.3	7.0	0.2	-6.4	8.1	1.5
Cash flow before changes in working capital	37.7	36.2	86.1	62.3	121.7	97.9
Change in working capital	-40.8	33.4	-55.8	54.7	-44.2	66.3
Cash flow from current operations	-3.1	69.6	30.3	117.0	77.5	164.2
Acquisition of businesses	0.0	-35.8	-60.6	-198.4	-61.6	-199.4
Capital expenditure on tangible fixed assets	-13.9	-17.9	-45.4	-59.6	-58.9	-73.1
Other cash flow from investment activities	0.4	0.0	5.2	0.0	6.0	0.8
Cash flow from investment activities	-13.5	-53.7	-100.8	-258.0	-114.5	-271.7
Dividends	-	-	-9.3	-13.8	-9.3	-13.8
Dividends to holdings without a controlling influence	-0.2	-0.2	-0.4	-0.8	-0.4	-0.8
Change in bank overdraft facilities	32.4	-16.1	58.8	-9.2	47.9	-20.1
Contract borrowing	0.8	7.2	3.6	19.5	0.5	16.4
Loans taken/repaid	-6.6	-4.8	-20.4	130.0	-26.7	123.7
Cash flow from financing activities	26.4	-13.9	32.3	125.7	12.0	105.4
Change in cash and equivalents	9.8	2.0	-38.2	-15.3	-25.0	-2.1
Cash and equivalents at beginning of the period	22.2	57.3	70.4	73.0	60.4	73.0
Exchange rate differences in cash and cash equiva lents	-2.9	1.1	-3.1	2.7	-6.3	-0.5
Cash and equivalents at end of the period	29.1	60.4	29.1	60.4	29.1	70.4

Consolidated Statement of Changes in Equity

Attributable to the parent company's shareholders

	Share capital	Other capital contribu tions	Translation of foreign subsidiaries	Hedging reserve	Loss brought forward incl. year's total result	Total	Attributable to holdings without a controlling influence	Total share holders' equity
1 January 2012	10.6	297.9	-6.5	-0.3	-96.5	205.3	9.5	214.8
Total comprehensive income for the period			-10.8	0.1	26.8	16.1	4.0	20.1
Financial liability to holdings without a controlling influence					0.0	0.0		0.0
Profit attributable to holdings without a controlling influence					0.1	0.1	-0.1	-
Translation of profit attributa ble to holdings without a controlling influence					-0.1	-0.1	0.1	-
Dividends					-9.3	-9.3		-9.3
Dividends to holdings without a controlling influence							-0.4	-0.4
Acquisitions from holdings without a controlling influence					-12.8	-12.8	-3.3	-16.1
Utilisation of shares from own custody					4.4	4.4		4.4
30 September 2012	10.6	297.9	-17.3	-0.2	-87.4	203.7	9.8	213.5

Holdings without a controlling influence: Proact Latvia Ltd, Latvia 15 %, Proact Lietuva UAB, Lithuania 26.14 %, Proact Netherlands B.V. 9.35 %, Proact Estonia AS 30 % and Proact IT UK Ltd 25 %.

Attributable to the parent company's shareholders

	Share capital	Other capital contribu tions	Translation of foreign subsidiaries	Hedging reserve	Loss brought forward incl. year's total result	Total	Attributable to holdings without a controlling influence	Total share holders' equity
1 January 2011	10.6	297.9	-5.7		-119.9	183.0	3.5	186.5
Total comprehensive income			3.4	-0.3	16.6	19.7	4.7	24.4
for the period Holdings without a controlling influence on acquisition							1.9	1.9
Financial liability to holdings without a controlling influence					-0.8	-0.8		-0.8
Profit attributable to holdings without a controlling influence					1.1	1.1	-1.1	-
Translation of profit attributa ble to holdings without a controlling influence					-1.1	-1.1	1.1	-
Utilisation of shares in own custody					13.1	13.1		13.1
Dividends					-13.8	-13.8		-13.8
Dividends to holdings without a controlling influence							-0.8	-0.8
30 September 2011	10.6	297.9	-2.3	-0.3	-104.8	201.2	9.3	210.5

Holdings without a controlling influence: Proact Latvia Ltd, Latvia 15 %, Proact Lietuva UAB, Lithuania 26.14 %, and Proact Netherlands B.V. 49 %, Proact Estonia AS 30 % and Proact IT UK Ltd 25 %.

Income statement for parent company

	3 mths Jul-Sep 2012	3 mths Jul-Sep 2011	9 mths Jan-Sep 2012	9 mths Jan-Sep 2011	12 mths Oct-Sep 2011/2012	12 mths Jan-Dec 2011
Revenues	14.6	15.3	46.4	43.9	59.8	57.3
Cost of goods and services sold	-	-	-	-	-	-
Gross profit	14.6	15.3	46.4	43.9	59.8	57.3
Administration expenses	-6.7	-12.2	-33.1	-44.5	-47.1	-58.5
Operating profit	7.9	3.1	13.3	-0.6	12.7	-1.2
Net financial items	-0.6	-1.2	14.7	-2.0	46.3	29.6
Profit before tax	7.3	1.9	28.0	-2.6	59.0	28.4
Income tax	-1.7	-0.2	-2.3	1.4	-1.2	2.5
Comprehensive income for the period	5.6	1.7	25.7	-1.2	57.8	30.9

Balance sheet for Parent Company

	2012 30 Sep	2012 30 Jun	2012 31 Mar	2011 31 Dec	2011 30 Sep
ASSETS
Fixed assets	494.7	501.4	476.7	464.2	463.7
Current assets	86.4	86.0	87.0	50.3	38.0
Total assets	581.1	587.4	563.7	514.5	501.7
EQUITY AND LIABILITIES
Equity	162.3	156.7	144.1	141.5	109.5
Long-term liabilities	159.0	170.3	171.2	178.3	203.8
Current liabilities	259.8	260.4	248.4	194.7	188.4
Total liabilities	418.8	430.7	419.6	373.0	392.2
Total equity and liabilities	581.1	587.4	563.7	514.5	501.7

EXPLANATORY INFORMATION

Note 1. General information

Proact IT Group AB (publ) (co. reg. no. 556494-3446) has its registered office in the municipality of Stockholm. Since July 1999, the Company has been listed on Nasdaq OMX Stockholm and the Small Cap list under the PACT symbol.

Note 2. Accounting policies

The consolidated accounts for the interim report, like the annual report for 2011, have been compiled in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU, and the Swedish Annual Accounts Act. The Parent Company's accounts have been compiled in accordance with the Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 (Accounting for Legal Entities).

The present interim report has been prepared in accordance with IAS 34, Interim reporting, and the Swedish Company Accounts Act. The term "IFRS" in this document includes the application of IAS and IFRS, as well as the interpretations of these standards as published by the IASB's Standards Interpretation Committee (SIC) and Internal Reporting Interpretations Committee (IFRIC).

The Group applies the same accounting principles as those described in the annual report for 2011, with the exception of reclassification of product-related support provided by the product manufacturer at the business in the UK which was acquired in 2011. This income has been reclassified as system income, and the comparative figures from last year have been corrected so as to provide a fair view of the business.

Note 3. Turnover by business area

	3 mths	3 mths	9 mths	9 mths	12 mths	12 mths
	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Oct-Sep	Jan-Dec
	2012	2011	2012	2011	2011/2012	2011
Retail and wholesale trade and services	132	134	420	395	629	604
Public sector	106	100	436	292	590	446
Manufacturing industry	72	62	217	191	307	281
Telecoms	45	54	186	206	254	274
Banking, finance	42	61	162	175	233	246
Oil, energy	69	72	161	163	225	227
Media	9	21	48	46	66	64
Other	12	23	91	65	116	90
Total	487	527	1 721	1 533	2 420	2 232

Note 4. Depreciation and write-down of fixed assets

	3 mths	3 mths	9 mths	9 mths	12 mths	12 mths
	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Oct-Sep	Jan-Dec
	2012	2011	2012	2011	2011/2012	2011
Depreciation of tangible fixed assets	-13.1	-11.8	-38.4	-33.5	-51.9	-47.0
Depreciation of intangible fixed assets	-5.4	-4.9	-16.4	-13.9	-22.5	-20.0
Total	-18.5	-16.7	-54.8	-47.4	-74.4	-67.0

Note 5. Income tax

The Group's tax expense includes total current tax and deferred tax calculated on the basis of applicable tax rates in the respective countries. The revised tax cost over the first nine months amounts to SEK 12.7 (7.9) million. Taxes paid over the period amount to SEK 12.3 (9.7) million. The Group's total deductions for losses amount to SEK 89.4 million. It has been assessed that the entire amount of SEK 89.4 million of this can be made use of against future taxable profits and the tax effect has been recorded as a deferred tax claim.

Note 6. Operating segments

North:	Finland, Norway and Northern Sweden
Benelux and Spain:	Netherlands, Belgium and Spain
West:	Denmark, the United Kingdom and Southern Sweden
East:	Estonia, Latvia, Lithuania, Czech Republic and Slovakia
Proact Finance:	Proact's finance company under its own auspices is reported sepa rately as this company supports all geographical regions.

			Benelux		Proact	Group wide
Jan-Sep 2012	West	North	/Spain	East	Finance	& elim.	Group
Total income	698	688	247	112	54	-78	1 721
Profit before tax	24.0	25.5	-2.2	4.1	-0.5	-7.1	43.8
Tax Comprehensive income for the peri od							-12.7 31.1

Jan-Sep 2011	West	North	Benelux /Spain	East	Proact Finance	Group wide & elim.	Group
Total income	557	693	217	85	21	-40	1 533
Profit before tax	4.2	33.4	6.7	-4.3	-1.7	-9.1	29.2
Tax							-7.9
Comprehensive income for the peri od							21.3

Note 7. Ten biggest shareholders

Stake in % according to Euroclear Sweden AB	30 Sep 2012	31 Dec 2011
Skandia Liv	14.9	12.4
Swedbank Robur Fonder	7.5	8.6
IGC Industrial Growth Co. AB	6.6	9.3
Skagen Fonder	6.6	7.2
SEB Fonder	4.6	4.6
Handelsbanken Fonder	4.2	3.5
AFA Sjukförsäkrings AB	3.3	-
Creades AB	3.1	5.3
Netfonds	2.4	-
Lannebo Micro Cap.	2.2	-
Other	44.6	49.1
Total	100.0	100.0

Note 8. Five-year summary

	Oct-Sep 2011/2012	Jan-Dec 2011	Jan-Dec 2010	Jan-Dec 2009	Jan-Dec 2008
Total income, SEK millions	2 420	2 232	1 387	1 253	1 044
EBITDA, SEK millions	143.2	121.5	94.9	76.7	59.6
EBITDA margin, %	5.9	5.4	6.8	6.1	5.7
EBITA, SEK millions	91.4	74.6	76.9	65.3	51.5
EBITA margin, %	3.8	3.3	5.5	5.2	4.9
EBIT, SEK millions	68.9	54.6	72.1	60.0	46.8
EBIT margin, %	2.8	2.4	5.2	4.8	4.5
Profit before tax, SEK millions	56.5	41.9	70.1	60.1	50.1
Net margin, %	2.3	1.9	5.1	4.8	4.8
Profit after tax, SEK millions	39.2	29.4	52.5	52.4	38.7
Profit margin, %	1.6	1.3	3.8	4.2	3.7
Equity ratio, %	16.9	14.3	21.4	24.1	24.8
Capital turnover rate, times	1.8	1.9	1.7	1.8	1.8
Return on equity, %	18.5	14.7	28.6	30.7	24.4
Return on capital employed, %	16.0	18.4	38.8	35.4	32.4
Investments in property, plant and equipment, SEK millions	59.0	73.1	39.8	22.5	11.5
Profit before tax per employee, SEK thousands	91	74	216	191	168
Average number of employees on annual basis	623	568	325	315	299
Earnings per share for the period, SEK *)	3.77	2.69	5.43	5.22	3.68

*) Proact has not issued any share options or conversion rights which could give rise to dilution. The number of shares is calculated excluding bought-back shares.

Note 9. Definitions

EBITDA	Profit before depreciation (tangible and intangible assets), net financial items and tax
EBITDA margin	EBITDA expressed as a percentage of revenues
EBITA	Profit after depreciation of tangible fixed assets but before depreciation of intangible assets, net financial items and tax
EBITA margin	EBITA expressed as a percentage of revenues
EBIT	Operating profit before net financial items and tax
EBIT margin	EBIT expressed as a percentage of revenues
Net margin %	Profit or loss before tax expressed as a percentage of revenues
Profit margin	Profit after tax expressed as a percentage of revenues
Equity ratio	Equity including minority interests as a percentage of balance sheet total
Capital turnover rate, times	Revenues expressed as a percentage of the average balance sheet total
Return on equity	Profit after tax, expressed as a percentage of average equity
Capital employed	Ratio of the balance sheet total minus non interest-bearing liabilities inclusive of deferred tax liabilities
Return on capital employed	Return after tax plus financial costs, expressed as a percentage of the average capital employed
Profit/loss per employee	Profit/loss before tax divided by the average number of annual employees

Proact IT Group AB [publ]

Box 1205 Tel.: +46 8 410 666 00

Kistagången 2 Fax: +46 8 410 668 80 SE-164 28 KISTA E-mail: itgroup@proact.se www.proact.se

Co. reg. no.: 556494- 3446 Headquarters: Stockholm