Rejlers — Interim / Quarterly Report 2009

Oct 28, 2009

Rejlerkoncernen AB (publ)

Interim Report, January-September 2009

28 October 2009

Improvement in sight

January-September

• Turnover was SEK 567.1 million (572.3)
• Operating profit was SEK 31.5 million (75.4)
• Operating margin amounted to 5.6 per cent (13.2)
• Profit after tax was SEK 22.5 million (54.2)
• Earnings per share were SEK 2.08 (5.02)

Third quarter

• Turnover was SEK 161.8 million (172.0)
• Operating profit was SEK 5.9 million (21.2)
• Operating margin amounted to 3.6 per cent (12.3)
• Profit after tax was SEK 4.2 million (15.4)
• Earnings per share were SEK 0.39 (1.42)

Statement from President and CEO Peter Rejler

Energy, Infrastructure and Construction and Property are durable, profitable customer groups that account for a large proportion of the Group's assignments. Demand for consultancy services from these customer groups has remained good during the third quarter.

In our fourth client segment, Industry the market situation remained weak during the quarter. There are signs of improvement within some parts of industry, however, such as the mining and steel industries and the paper and pulp industries. The demand situation is plagued by great uncertainty, although our assessment is that the worst years are behind us and a slow improvement can be expected.

During the quarter, we received a commission within Infrastructure to plan all the technical systems for the Masmolänken, a four-lane road tunnel. Within Industry we received an order from one of the largest engineering companies in Sweden which involves productivity and quality improvements in their production equipment. We have entered into a key framework agreement with Fortum Power and Heat Oy resulting in broader cooperation with the company with regard to Rejlers' consultancy services.

Rejlers' ambition is to expand through organic growth and acquisitions in roughly equal measure, while retaining quality and good profitability over a business cycle. We have a good financial position and our broad customer base generates stability during fluctuations in business conditions. Our growth target remains the same.

For further information, please contact:

Peter Rejler, President and CEO tel. +46 (0)70 602 34 24, e-mail: peter.rejler@rejlers.se Lars Solin, CFO tel. +46 (0)73 386 15 20, e-mail: lars.solin@rejlers.se

Rejlers is a Nordic group offering technical consultancy services in the fields of electrical engineering, energy, mechanical engineering, automation, electronics, IT and telecommunications. Rejlers' shares are listed on the Nordic list of Nasdaq OMX.

			Operating income, SEK million			Operating profit/loss, SEK million				Operating margin, %
	2009	2008	2009	2008	2009	2008	2009	2008	2009	2008	2009	2008
	July Sept	July Sept	Jan Sept	Jan Sept	July Sept	July Sept	Jan Sept	Jan Sept	July Sept	July Sept	Jan Sept	Jan Sept
Rejlers Sweden	119.4	128.5	419.0	433.3	4.5	16.1	29.3	59.2	3.8	12.5	7.0	13.7
Rejlers Finland	45.0	46.1	153.9	145.8	3.2	6.0	5.5	18.9	7.1	13.1	3.6	13.0
Group-wide, etc.	-2.6	-2.6	-5.9	-6.8	-1.8	-0.9	-3.3	-2.7	neg	neg	neg	neg
Total Group	161.8	172.0	567.1	572.3	5.9	21.2	31.5	75.4	3.6	12.3	5.6	13.2

Turnover and profits

Turnover in Q3 was SEK 161.8 million (172.0) and operating profit was SEK 5.9 million (21.2). The operating margin amounted to 3.6 per cent (12.3). The number of working days during the third quarter was 66 (66). The debiting ratio was 73 per cent compared with 78 per cent last year.

For the period January-September, turnover was SEK 567.1 million (572.3) and the operating profit was SEK 31.5 million (75.4). The operating margin amounted to 5.6 per cent (13.2). The number of working days during the period was 186 (188). The debiting ratio was 74 per cent compared with 79 per cent last year.

Profit after net financial items amounted to SEK 31.1 million (76.3) and the profit after tax was SEK 22.5 million (54.2). Financial income amounted to SEK 0.7 million (1.8), and financial expenses amounted to SEK 1.1 million (0.9).

The lower profit is primarily due to a fall in demand within the industry, which has had a negative effect on the debiting ratio. The absence of the premium discount from Alecta has had a negative effect on operating profit of around SEK 6 million, while the change in the number of working days has had a negative effect on operating profit of around SEK 6 million compared with January-September 2008.

There were no related-party transactions with a significant impact on the Group's profit or financial position. Transactions with related parties took place on market terms.

Operating profit Operating profit, rolling 12 months

Earnings per share

Third-quarter earnings per share were SEK 0.39 (1.42).

For January-September the earnings per share were SEK 2.08 (5.02). Equity per share was SEK 20.71 at the end of the period, compared with SEK 21.50 at 31 December 2008.

Capital expenditure

Investments in equipment amounted to SEK 5.8 million (6.0), while investments in intangible assets and trading amounted to SEK 2.4 million (20.0). Depreciation and write-downs amounted to SEK -11.5 million (- 10.3).

Cash flow and financial position

Cash flow from current operations was SEK 14.4 million (56.5). At the end of the period, the Group's liquid assets amounted to SEK 53.2 million, compared with SEK 77.1 million at 31 December 2008, excluding an unused overdraft facility. Interest-bearing liabilities decreased by SEK 5.6 million and at the end of the period amounted to SEK 17.9 million compared with SEK 23.5 million at 31 December 2008. The equity/assets ratio at the end of the period was 60.2 per cent compared with 57.0 at 31 December 2008. During the period, dividends with a total value of SEK 27.1 million (27.0) were distributed to shareholders in the parent company.

Employees

The number of full-time employees at the end of the period was 944 (of which 62 were laid off in Finland), compared with 925 at 31 December 2008, an increase of 2 per cent. The average number of employees was 936 (of which 33 were laid off in Finland), compared with 875 for the corresponding period last year, an increase of 7 per cent.

The parent company

The parent company's net turnover for the period January-September amounted to SEK 4.6 million (5.0), with the profit before tax amounting to SEK 16.1 million (11.5).

Significant events after the end of the quarter

At subsidiary Rejlers Ingenjörer AB, which conducts consultancy operations in Sweden, Jonas Nilsson has been appointed MD as successor to Peter Rejler. Jonas Nilsson was previously Deputy MD of the company. The new Deputy MD will be Conny Udd, who is Site Manager for Rejlers Ingenjörer's offices in Karlstad. They will both take up their new positions on 1 November 2009. Peter Rejler continues as the President and CEO of the parent company Rejler Group. The change will allow Peter Rejler to spend more time working on the Group's strategic development.

Rejlers Sweden

Operations in Sweden are run by the group companies Rejlers Ingenjörer AB, Rejlers Energitjänster AB, ComIT Rejlers AB, Rejlers International AB, Rejlers OÜ and Rejlers AS. Rejlers Sweden provides consultancy services in the fields of electrical engineering, energy, mechanical engineering, automation, electronics, IT and telecommunications, primarily to four customer groups: Infrastructure, Industry, Energy, and Construction and Property. Rejlers also provides energy metering services to utility companies, electricity trading companies and property companies. Rejlers has 28 offices in Sweden and at the end of the quarter the company employed 640 (623) people.

The market

Rejlers had a healthy order book for assignments within Infrastructure and Energy during the third quarter. Assignments from these customer groups account for around 60 per cent of turnover at operations in Sweden.

A lower number of orders received from large customers within the steel and engineering industries has affected business within the Industry customer group during the third quarter. In order to manage this weak demand, around 25 employees have been affected by short-time working, redundancy or relocation to other busier areas. A number of companies within the industry sector are indicating that the slump has bottomed out, however, and there are signs of a more stable, if still weak, consultancy market within parts of industry.

Rejlers still has a healthy order book from the energy sector, where customers continue to invest. Investments within energy production are increasing demand for Rejlers' services in nuclear power and wind power. The nuclear power industry is set to undergo an extensive programme of rebuilding and modernisation. There is good demand at Rejlers Energitjänster for complete metering technology solutions which increase efficiency in energy consumption.

Demand for infrastructure assignments remains at a high level, as the Swedish government has launched several large stimulus packages with investments in infrastructure. Rejlers has important assignments as part of the major infrastructure projects which aim to extend the Swedish road and rail network, including the City Line, the City Tunnel and the Ådalsbanan Line. The assignments cover everything from construction management and project management to automation and monitoring of electrical, signal and telecommunications systems, as well as planning overhead catenary systems and routing.

Demand for Rejlers' telecommunications expertise is driven by investments in mobile and fixed broadband, for example. Mobile telephone operators have begun planning for the expansion of 4G (LTE), which is a positive sign for future demand within telecommunications.

Demand within Construction and Property remains strong in the major urban areas. Investments are being made by both the public and private sectors in projects that often last for several years.

Rejlers AS in Norway, which is currently classed under Swedish operations, is actively focusing on growth within telecommunications, energy and environmental technology, which are showing a positive market trend.

Examples of assignments in the third quarter

• Rejlers has been commissioned by the Swedish National Road Administration to plan all the technical systems for the construction of the Masmolänken, a four-lane road tunnel. In this project, Rejlers is responsible for systems management and the work schedule for electricity, telecommunications, lighting, control and risk & safety systems, as well as traffic systems and process and tunnel ventilation.

• Rejlers has been commissioned to examine the physical IT security at the municipalities of Höör and Hörby. The perimeter security, cooling solution, power solution, monitoring and fire safety will be examined. Rejlers is also producing an energy-optimised solution for the municipalities.
• Rejlers has received an order from one of the largest engineering companies in Sweden which aims to improve productivity and quality in existing production equipment. The assignment includes the construction and delivery of mechanical equipment, electricity and automation systems, as well as installation and implementation. The order is worth approximately SEK 5.5 million.
• Rejlers has received a new commission from Telia which includes the project management of the expansion and installation of 110 reserve power stations and the administration of associated electricity subscriptions.

Rejlers Finland

Operations in Finland are run by the group companies Rejlers Finland Oy, Rejlers Oy and Rejlers Projektit Oy. Rejlers has operations in 14 locations in Finland. Rejlers Finland provides consultancy services in the fields of electrical engineering, automation, mechanical engineering, heating, ventilation and sanitation, energy, environmental technology and architecture as well as turnkey deliveries mainly to major industrial customers, but also to Rejlers' other customer groups of Infrastructure, Construction and Property and Energy. The number of employees at the end of the quarter was 300 (300), of which 62 are currently laid off.

The market

The company was also affected by a lower number of orders received for industrial assignments during the third quarter. There are some signs of improvement in the form of increased orders from the paper and pulp industries, although the market remains weak in the engineering and shipbuilding industries. This has forced Rejlers to lay off further staff during the period.

Rejlers is actively targeting growth within the Energy customer group and is increasing its marketing activities. This customer group currently accounts for around 25 per cent of turnover. Energy activities are characterised by nuclear power and wind power assignments, which have experienced positive market development. The number of assignments from the oil industry has fallen during the quarter, but is expected to pick up towards the end of this year. Over the next few years, there will be investment in electricity distribution networks, which will foster demand for Rejlers' expertise.

Rejlers is also targeting growth within Infrastructure and Environmental technology, areas which are expected to continue to see positive development. Rail traffic in Finland is expected to increase over the coming years and the existing road and rail networks are in need of investment. The order book for assignments in large infrastructure projects is healthy, particularly for rail and environmental projects. The Western Metro line in Helsinki is an example of where Rejlers is responsible for project planning and construction management.

Demand for services in Construction and Property also remains at a relatively good level for public buildings and the renovation of residential property, but demand has fallen for industrial buildings and new residential property.

Examples of assignments in the third quarter

• Miktech is building a new safety and materials technology centre in Mikkeli, Finland. The centre will occupy offices, a production area and a laboratory covering an area of 32,000 m2 . Rejlers has been commissioned to plan the heating, ventilation and sanitation and building automation as well as to perform energy technology simulations. The assignment is being carried out using energy-efficient technology, with the aim of meeting the requirements for energy efficiency that will come into force in 2015, which will halve energy consumption in comparison with an ordinary building. The centre is Finland's first office building to use low-energy technology.
• Fortum Power and Heat Oy entered into a 2-year framework agreement with Rejlers for consultancy services at the beginning of July 2009 with an option to extend. The agreement covers all Rejlers' offices and is part of the company's focus on energy customers. Fortum is Rejlers' third-largest customer in Finland.

Group

Income statement

	July	July	Jan	Jan
	Sept	Sept	Sept	Sept	Full year
Group, SEK million	2009	2008	2009	2008	2008
Income	161.8	172.0	567.1	572.3	797.6
Personnel costs	-109.3	-106.3	-394.9	-359.6	-503.4
Other external costs	-43.0	-41.0	-129.4	-127.4	-183.7
Depreciation	-3.8	-3.7	-11.5	-10.3	-14.9
Shares in associated companies	0.2	0.2	0.2	0.4	0.5
Operating income	5.9	21.2	31.5	75.4	96.1
Net financial items	-0.3	0.4	-0.4	0.9	1.1
Earnings after net financial items	5.6	21.6	31.1	76.3	97.2
Tax	-1.4	-6.2	-8.6	-22.1	-27.5
Profit for period	4.2	15.4	22.5	54.2	69.7
Earnings per share, SEK	0.39	1.42	2.08	5.02	6.45
Average number of shares	10 821 721	10 821 721	10 821 721	10 804 956	10 809 147
Report on overall results
Profit for period	4.2	15.4	22.5	54.2	69.7
Other overall results for period: Conversion differences, foreign
operations, after tax	-3.5	1.9	-4.0	1.8	8.5
Total other overall results	-3.5	1.9	-4.0	1.8	8.5
Overall results for period	0.7	17.3	18.5	56.0	78.2

Cash flow statement

	July Sept	July Sept	Jan Sept	Jan Sept	Full year
Group, SEK million	2009	2008	2009	2008	2008
Cash flow from current operations before
changes in operating capital and tax paid	9.3	24.5	41.9	84.8	111.2
Tax paid	-5.4	-6.0	-20.9	-18.9	-17.5
Changes in operating capital	-8.1	-10.4	-6.6	-9.4	-1.7
Cash flow from current operations	-4.2	8.1	14.4	56.5	92.0
Cash flow from investment activities	-2.5	-11.5	-8.2	-26.0	-32.9
Cash flow from financing activities	-1.3	-0.2	-30.1	-31.2	-27.8
Cash flow for the year	-8.0	-3.6	-23.9	-0.7	31.3
Liquid assets beginning of the period	61,2	48,7	77,1	45,8	45,8
Liquid assets end of the period	53.2	45.1	53.2	45.1	77.1
Unused overdraft facility	15.0	15.0	15.0	15.0	15.0
Unappropriated funds	68.2	60.1	68.2	60.1	92.1

Balance sheet

	30 Sept	30 Sept	31 Dec
Group, SEK million	2009	2008	2008
Assets
Fixed assets
Goodwill	83.0	79.5	83.5
Other intangible assets1)	18.2	19.5	20.5
Tangible assets	31.9	31.0	34.7
Financial fixed assets	2.9	3.2	3.0
Total fixed assets	136.0	133.1	141.7
Current assets
Current receivables	183.2	181.5	189.8
Liquid assets	53.2	45.1	77.1
Total current assets	236.4	226.6	266.9
Total assets	372.4	359.8	408.6
Shareholders' equity and shareholders' liabilities
Shareholders' equity	224.1	210.5	232.7
Long-term liabilities	32.0	28.6	33.8
Current liabilities	116.3	120.7	142.1
Total liabilities and shareholders' equity	372.4	359.8	408.6
Of which, non-interest-bearing liabilities	17.9	18.6	23.5
Pledged assets and contingent liabilities	13.8	11.7	13.8

1) SEK 12.9 million of these other intangible assets relates to customer value and SEK 5.3 million to software. The value of goodwill has been tested for impairment using a discount rate after tax of 12%. These tests have shown no requirement for impairment.

Change in Shareholders' equity

	30 Sept	30 Sept	31 Dec
Group, SEK million	2009	2008	2008
Shareholders' equity at start of year	232.7	179.6	179.6
Overall results for period	18.5	56.0	78.2
Changes attributable to transactions with
the owners
Dividends	-27.1	-27.0	-27.0
New share issue1)		1.9	1.9
Total changes attributable to transactions
with the owners	-27.1	-25.1	-25.1
Shareholders' equity at end of period	224.1	210.5	232.7

1) In May 2008, a directed share issue was implemented with the intention of providing additional funds for the acquisition of Rejlers Finland OY. A total of 37,720 Class B shares were issued at an issue price of SEK 49.65 per share.

Key ratios

	July	July	Jan	Jan
	Sept	Sept	Sept	Sept	Full year
Group	2009	2008	2009	2008	2008
Operating margin, %	3.6	12.3	5.6	13.2	12.0
Profit margin, %	3.5	12.6	5.5	13.3	12.2
Return on equity, %	1.8	7.9	9.9	27.8	33.8
Return on total capital, %	1.5	6.5	8.2	22.8	27.2
Return on capital employed, %	2.4	10.6	12.9	37.3	43.5
Cash liquidity (excl. unused overdraft facility), %	204	188	203	188	188
Equity/assets ratio, %	60.2	58.5	60.2	58.5	57.0
Debt/equity ratio, times	0.1	0.1	0.1	0.1	0.1
Interest coverage ratio, times	15	73	29	86	62
Investments, SEK million	2.5	11.5	8.2	26.0	33.6
Debiting ratio, %	73	78	74	79	79
Number of working days	66	66	186	188	250
Average number of full-time employees			9031)	875	893
Turnover per full-time employee, SEK thousand Operating profit/loss per full-time employee, SEK			628	654	893
thousand			35	86	108
Net liabilities, SEK million	-	-	-	-	-
Earnings per share after tax, SEK	0.39	1.42	2.08	5.02	6.45
Average number of shares	10 821 721	10 821 721	10 821 721	10 804 956	10 809 147
Equity per share at end of period	20.71	19.45	20.71	19.45	21.50
Number of shares at end of period	10 821 721	10 821 721	10 821 721	10 821 721	10 821 721

1) Converted in respect of the lay-offs made in Finland. Excluding lay-offs, the average number of full-time employees would be 936.

Acquisition of subsidiaries and operations

In January 2009, Rejlers acquired 100 per cent of the operations of Objektor AB in Västerås, with 3 employees. The purchase-sum was SEK 2.0 million. The operation is active in the field of industrial IT and annual turnover is around SEK 3 million. The acquisition has affected the Group's turnover by SEK 2.0 million and the operating profit by SEK -0.1 million. The business has been owned for the whole period. The surplus value on the acquisition has been allocated to intangible assets and amounts to SEK 2.0 million.

Acquisitions, SEK million

	Jan
	Sept
Group	2009
Surplus value
Intangible assets	2.0
Total purchase price	2.0
Effect on liquid assets	2.0

Quarterly summary

	2006	2007	2007	2007	2007	2008	2008	2008	2008	2009	2009	2009
Group, SEK million	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
Income, rolling 12 mths
Sweden	453.2	475.8	490.6	503.6	521.4	539.0	562.8	579.7	597.0	600.5	591.8	582.8
Finland	111.6	116.4	127.5	134.0	139.5	154.9	169.0	183.8	205.8	216.7	215.1	213.9
Group-wide, etc	-6.5	-7.9	-7.0	-7.4	-9.9	-9.7	-9.9	-10.9	-5.2	-4.5	-4.3	-4.3
Total	558.3	584.3	611.1	630.2	651.0	684.2	721.9	752.6	797.6	812.7	802.6	792.4
Operating profit, rolling 12 mths
Sweden	36.2	41.3	44.9	47.2	55.2	63.0	70.8	77.1	76.6	68.6	58.5	46.9
Finland	17.2	17.8	18.2	20.5	18.9	21.0	22.9	23.0	22.7	19.4	12.2	9.4
Group-wide, etc	-3.0	-3.6	-4.7	-5.0	-3.6	-4.0	-3.8	-3.7	-3.2	-3.8	-3.2	-4.1
Total	50.4	55.5	58.4	62.7	70.5	80.0	89.9	96.4	96.1	84.2	67.5	52.2
Operating margin, rolling 12 mths
Sweden	8.0	8.7	9.2	9.4	10.6	11.7	12.6	13.3	12.8	11.4	9.9	8.0
Finland	15.4	15.3	14.3	15.3	13.5	13.6	13.6	12.5	11.0	9.0	5.7	4.4
Group-wide, etc	neg	neg	neg	neg	neg	neg	neg	neg	neg	neg	neg	neg
Total	9.0	9.5	9.6	9.9	10.8	11.7	12.5	12.8	12.0	10.4	8.4	6.6
Number of full-time employees at end of period
Sweden	517	546	565	568	564	577	578	619	621	634	630	640
Finland	190	227	230	235	240	252	299	300	300	299	3001)	3001)
Group-wide, etc	0	4	4	4	4	4	4	4	4	4	4	4
Total	707	777	799	807	808	833	881	923	925	937	934	944

1) Of which 62 employees (Q3) and 60 employees (Q2) have been temporarily laid off.

Parent company

Income statement

	Jan	Jan
	Sept	Sept	Full year
Parent company, SEK million	2009	2008	2008
Income	4.6	5.0	6.6
Personnel costs	-4.8	-5.0	-8.5
Other external costs	-3.7	-3.0	-4.3
Depreciation		0	0.0
Shares in associated companies		0.4	0.5
Operating income	-3.9	-2.6	-5.8
Net financial items1)	20.0	14.1	15.2
Earnings after net financial items	16.1	11.5	9.4
Balance sheet appropriations		-	-2.1
Tax	1.1	0.9	2.1
Profit after tax	17.2	12.4	9.4

1) During 2009, dividends of SEK 20 million (15.5) have been received from subsidiaries.

Balance sheet

	30 Sept	30 Sept	31 Dec
Parent company, SEK million	2009	2008	2008
Assets
Fixed assets
Financial fixed assets	82.2	81.0	82.2
Total fixed assets	82.2	81.0	82.2
Current assets
Current receivables	5.1	17.4	1.1
Liquid assets	39.4	31.4	49.5
Total current assets	44.5	48.8	50.6
Total assets	126.7	129.8	132.9
Shareholders' equity and
shareholders' liabilities
Shareholders' equity1)	73.8	75.1	83.7
Untaxed reserves	15.4	13.3	15.4
Long-term liabilities		0.0	0.0
Current liabilities	37.5	41.4	33.7
Total liabilities and shareholders'
equity	126.7	129.8	132.9

1) During 2009, dividends of SEK -27.1 million (-27.0) have been distributed while dividends of SEK 20.0 million (15.5) have been received from subsidiaries.

Rejlers' shares

The last buy price for the Rejlers class B share was SEK 50 at the end of the quarter, an increase of 4 per cent compared with 30 December 2008. The last buy price for the Rejlers class B share on 27 October 2009 was SEK 52.75 per share. Rejlers' shares are listed on the Nordic list of Nasdaq OMX.

The total share capital of the Rejlers Group amounts to SEK 21,643,442 and the total number of votes is 22,217,971. At the end of the quarter, the total number of shares in the company was 10,821,721, breaking down into 1,253,750 Class A shares (ten votes per share) and 9,567,971 Class B shares (one vote per share).

Annual General Meeting 2010

The Annual General Meeting will be held in Stockholm on 29 April 2010.

Information on the Nominations Committee and the AGM will be available on the company's website, www.rejlers.com.

	Class A	Class B
Name	shares	shares	Holding (%)	Votes (%)
Peter Rejler	961 250	51 700	9.36	43.72
Lars Kylberg, indirect ownership	262 500	187 500	4.16	12.72
Swedbank Robur funds	-	874 586	8.08	3.96
Lisa Rejler	8 750	774 750	7.24	3.90
Martina Rejler	8 750	696 250	6.51	3.55
Lauri Valkonen	-	606 334	5.60	2.74
Jan Rejler	-	593 250	5.48	2.68
JP Morgan Chase Bank	-	408 000	3.77	1.85
Pohjola bank Plc	-	367 849	3.40	1.66
Lannebo Micro Cap.	-	362 156	3.35	1.64
Total 10 largest shareholders	1 241 250	4 922 375	56.96	78.42
Total other shareholders	12 500	4 645 596	43.04	21.58
Total 30.09.09	1 253 750	9 567 971	100.00	100.00

Rejlers' ten largest shareholders as at 30 September 2009

Significant risks and uncertainties

There is a certain degree of risk associated with all enterprises. Rejlers' primary business risks consist of reduced demand for consultancy services, difficulties in recruitment and retention of competent personnel, loss of personnel in connection with acquisitions, risk in connection with fixed-price assignments and credit risks.

Rejlers' strategy is to have customers in various sectors and to work actively on transferring resources following a change in the picture of demand, thus evening out fluctuations in demand. Employees are a key asset and Rejlers therefore places significant emphasis on healthy workplaces, ongoing training and health in order to retain existing staff and as a means of achieving our growth targets. Acquisitions create added value for both the purchasing and acquired companies, which helps limit the risk of losing staff. Rejlers has, for the most part, financially strong customers and the credit risk is considered to be low. However we judge the credit risk to be higher than normal due to the prevailing adverse state of the market. The majority of sales and borrowing takes place in local currency, which ultimately results in a very low currency risk. Fixed price assignments comprise a small part of turnover but nonetheless constitute a risk. Rejlers therefore has a system for monitoring and following up such assignments in order to minimise the risk of depreciation.

The parent company pursues, to a lesser extent, activities in which the risks are mainly limited to currency and liquidity risks.

Accounting principles

This interim report has been prepared for the Group in accordance with IAS 34 Interim Financial Reporting. The parent company's report has been prepared in accordance with the Swedish Annual Accounts Act (ÅRL) and RFR 2.1, Reporting for Legal Entities.

The revised IAS 1, "Presentation of financial statements", will be used from 1 January 2009. The change has affected the accounting of the Rejler Group retroactively from 1 January 2008 in respect of income and costs which were previously accounted for directly against equity but which are now accounted for in a separate report immediately following the income statement.

Otherwise, the same accounting principles have been applied as in the most recent Annual Accounts. The new interpretations issued by IASB, which came into force on 1 January 2008, have not affected the reported profit or position. For detailed information in respect of accounting principles, please refer to the Annual Accounts for 2008.

Preparing the financial reports in accordance with IFRS requires that the company's management make assessments and estimates, as well as assumptions, which affect the application of the accounting principles and the reported amounts for assets, liabilities, income and costs. The actual outcome may deviate from these estimates and assessments. Estimates and assumptions are regularly reviewed. Changes in estimates are accounted for in the period in which the change is made if the change has only affected that period, or in the period in which the change was made and future periods where the change affects both the current period and future periods.

Stockholm, 28 October 2009 Rejlerkoncernen AB

Peter Rejler President and CEO

REJLERKONCERNEN AB (publ) PO Box 49061 SE-100 28 Stockholm, Sweden Visitors' address: Industrigatan 2A Tel +46 (0)8-692 10 00, Fax +46 (0)8-654 33 39 Co. reg. no. 556349-8426. The Board's registered office is in Stockholm. E-mail: info@rejlers.se www.rejlers.se

Review report

We have reviewed the interim report for Rejlerkoncernen AB (publ) for the period January to September 2009 inclusive. The Board of Directors and the Chief Executive Officer are responsible for the preparation and presentation of this interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to provide an opinion on the interim financial information based on our review.

We conducted our review in accordance with the International Standard on Review Engagements 2410 ''Review of Interim Financial Information Performed by the Independent Auditor of the Entity''. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden RS and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the qualified opinion expressed based on a review does not give the same level of assurance as an unqualified opinion expressed based on an audit.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not, in all essentials, prepared for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act and for the parent company in accordance with the Swedish Annual Accounts Act.

Stockholm, 28 October 2009

PricewaterhouseCoopers

Lars Wennberg Authorised Public Accountant

Dates for financial reports

Year-end Report 2009 25 February 2010 Interim Report, January-March 2010 29 April 2010 Annual General Meeting 2010 29 April 2010 in Stockholm

Rejlers in brief

Rejlers is a Nordic group offering technical consultancy services in the fields of electrical engineering, energy, mechanical engineering, automation, electronics, IT and telecommunications. Rejlers was founded in 1942. At that time, its business concept was to expand the electricity supply network in Sweden. Today, Rejlers has grown into one of the largest engineering consultants in the Nordic region and is an established player with a good reputation on the market.

Rejlers' objective is to employ at least 1,000 staff and have a turnover of SEK 1 billion by 2010. This objective will be achieved through recruitment, strategic acquisitions and establishing new companies. Rejlers' domestic markets are Sweden and Finland, with the Baltic States and the rest of the Nordic region as its natural growth market.

The Group has around 940 employees, spread across 42 offices in Sweden, Finland, Estonia and Norway. The Group's head office is located in Stockholm. Rejlers' Class B shares are listed on the Nordic list of the OMX Nordic Exchange Stockholm, where the share comes under the industrial goods and services sector.

Explanations of key figures

Operating margin Operating profit/loss after depreciation in relation to income Profit ratio Profit/loss after financial income and expenses in relation to income Return on shareholders' equity Profit/loss after tax in relation to average shareholders' equity Liquidity ratio Current assets divided by current liabilities. Equity-assets ratio Shareholders' equity in relation to balance sheet total Interest coverage ratio Profit/loss after net financial items plus financial expenses in relation to financial expenses

Return on capital employed

Profit/loss after net financial items plus financial expenses in relation to average capital employed

Invoicing ratio; debiting ratio Time that can be invoiced in relation to total attendance time Number of full-time employees Attendance and absence hours (excluding long-term absence) divided by normal hours Earnings per share, SEK Profit after tax divided by the average number of shares Equity per share Equity divided by total number of shares at end of period Debt/equity ratio Interest-bearing liabilities in relation to shareholders' equity Return on total capital Profit/loss after net financial items with add-back of interest expenses in relation to average balance sheet total

The information in this interim report is that which Rejlerkoncernen AB is required to publish in compliance with the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was released for publication on 28 October 2009.

This report is also available in Swedish. The English version is a translation of the Swedish original. In the case of any discrepancy between the two, the Swedish version takes precedence.