Sectra — Earnings Release 2018

Sep 12, 2017

Interim report for the May-July 2017 period:

Growth and increased operating profit

	The quarter			12 months
SEK million	Q1	Q1	Change	Rolling	Full-year	Change
	2017/2018	2016/2017	%	12 months	2016/2017	%
Order bookings	227.6	225.5	0.9	1,179.8	1,177.7	0.2
Net sales	265.1	230.5	15.0	1,175.6	1,140.9	3.0
Operating profit (EBIT)	44.3	32.1	38.0	212.5	200.4	6.0
Operating margin, %	16.7	13.9	n/a	18.1	17.6	n/a
Profit before tax (EBT)	28.8	31.2	-7.7	197.6	200.0	-1.2
Profit margin, %	10.9	13.5	n/a	16.8	17.5	n/a
Profit after tax	22.5	24.3	-7.4	151.0	152.8	-1.2
Earnings per share, SEK 1	0.59	0.65	-9.2	3.99	4.04	-1.2
Cash flow 2	24.3	17.6	38.1	241.8	235.2	2.8
Cash flow per share 2	0.64	0.47	36.2	6.38	6.21	2.7
Average number of employees	640	615	4.1	623	616	1.1

¹ Prior to dilution. ²Cash flow from operations after changes in working capital.

CEO'S COMMENTS

Sectra's operating areas continued to develop and the trend for the Group's financial results was positive. Our Imaging IT Solutions business area got off to a much better start than in the comparative quarter, but we cannot draw any definitive conclusions based on the outcome for a single quarter. Sales in Secure Communications also improved, mainly as a result of development assignments and products for secure communications. Although the business area's new venture in the area of cybersecurity for critical infrastructure has not yet generated any substantial sales, we have signed a number of strategic orders and are growing in the Nordic energy sector.

Order bookings did not quite reach the desired level and we are continuing to focus on growth. In many of the markets where Sectra operates, we command such a large market share that our growth opportunities are limited.. However, this is not the case in the US, where, in addition to a high level of customer loyalty, we also have a relatively small market share. We have been commissioned by several prominent healthcare providers in the US over the past year, and I expect that we will continue to benefit from favorable business opportunities in the US market going forward. To achieve long-term growth, we must also enter new markets and channels. Over the past year, we have established ourselves in two new countries, namely France and Canada. Customer demand for the solutions we provide remains favorable, and we witnessed no changes to the underlying trends in our markets. We have a stable foundation, with a substantial share of long-term customer contracts, and more than half our sales comprise recurring revenue.

Strategic and business choices

Over the past few months, Sectra signed agreements with several customers who have chosen to use our medical IT solutions for cancer diagnostics—not only as a means of enhancing the efficiency of the work conducted in individual departments, such as radiology, breast imaging and pathology, but also to facilitate collaboration between various departments using our solutions for integrated diagnostics.

In addition to establishing a strong position in IT solutions for general diagnostic imaging, an important part of the growth strategy for Imaging IT Solutions is to focus on becoming a leader in cancer diagnostics. The fact that the number of cancer cases is on the rise and more patients are surviving the disease thanks to medical advances is resulting in an increase in diagnostic imaging and placing greater pressure on diagnostic care. Our focus for the future will be on tools for efficient cancer diagnostics, bringing together the subareas of radiology, breast imaging and pathology in a single system. This type of diagnostics is crucial when it comes to personalized medicine, an area that is undergoing rapid growth.

REPORT PRESENTATION

by telephone with President Torbjörn Kronander and CFO Mats Franzén. The presentation will be held in English.

Time: September 12, 2017, at 10:00 a.m. To participate, call: SE: +46 8 56642690 UK: +44 2030089802 US: +1 8557532235 Follow online via: www.sectra.com/irwebcast

Outlook

Sectra's customers operate in some of society's most critical functions. Our job is to help our customers become more efficient and give them the tools to, in turn, make people's lives healthier, safer and more secure. By following our vision, this is how we create value for our customers, our society and our shareholders.

Healthcare and cybersecurity are growing and rapidly changing markets, where numerous opportunities are being created for companies such as Sectra. We are well positioned in these areas, with stable solutions, a long-term future focus and high customer satisfaction. I therefore have high hopes when it comes to our ability to continue this positive trend in the future.

Torbjörn Kronander, President and CEO

THE PERIOD IN BRIEF

First quarter

• Order bookings increased 0.9% to SEK 227.6 million (225.5).
• Net sales totaled SEK 265.1 million (230.5), up 15.0%. Adjusted for currency fluctuations, sales increased 15.4%.
• Operating profit rose 38.0% to SEK 44.3 million (32.1), corresponding to an operating margin of 16.7% (13.9). Adjusted for currency fluctuations, operating profit increased 38.9%.
• Cash flow after changes in working capital amounted to SEK 24.3 million (17.6).

Events during the first quarter

• The Board of Directors and the CEO proposed that the Annual General Meeting (AGM) on September 13, 2017 resolve to distribute SEK 4.50 per share to the shareholders through a redemption process (refer to page 10).
• Sectra opened an office in Canada for direct sales of medical systems.
• Västernorrland County Council in Sweden ordered Sectra's solution for storing and viewing digital pathology images.
• Belgian healthcare provider AZ Delta ordered Sectra's multimedia archive (VNA) and solution for reviewing medical images.
• Sectra delivered its solution for secure mobile telephony, Sectra Tiger/S, to the Norwegian Defense Forces.

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

• UC San Diego Medical Center in the US ordered Sectra's solution for reviewing medical images, Sectra PACS for breast imaging.
• Temple University Health System in the US signed a multiyear agreement for the use of Sectra's medical IT solutions. The order includes Sectra PACS for radiology and breast imaging as well as solutions for advanced visualization and planning of orthopaedic procedures.

For more details on these events, visit: www.sectra.com/news

THE FUTURE

The world needs more efficient healthcare and increased security in society's communication and IT systems. Sectra plays a key role in meeting the needs in both of these areas, which also offer significant scope for expansion.

IT support for more efficient care

To maintain a high quality of care despite today's population development, the healthcare sector is being forced to accomplish more with the same or fewer resources. With IT solutions and services for medical diagnostic imaging and medical education, Sectra is helping the healthcare sector to increase its efficiency, consolidate patient information and facilitate cooperation between various healthcare providers.

Society also needs to improve how it takes care of age-related diseases. Sectra offers several products and services that enhance the efficiency of care for some of the most costly diseases primarily affecting older people. For example, the company's offering facilitates cancer diagnostics as well as planning and monitoring of orthopaedic surgeries. Sectra's work enables hospitals across the world to become more efficient, and thus take care of more patients and save more lives.

IT solutions for a more stable and safer society

The secure transfer of information plays a key role in maintaining the stability of many of society's functions. Sectra develops products and services that protect some of society's most sensitive information and communications. The offering includes secure voice and data communications, with solutions certified at the national level and by the EU and NATO. For the past year, Sectra has also offered cybersecurity for critical IT systems used in the production and supply of energy and water. By helping customers to provide increased security for society's most critical communication and control systems, Sectra contributes to a more stable and safer society.

Unless otherwise stated, the results shown in the following diagrams refer to amounts restated in SEK million, bars refer to the result per quarter and lines refer to rolling 12 months.

GROUP

Order bookings, sales and earnings

First quarter

Order bookings for the first quarter amounted to SEK 227.6 million, up 0.9% from the comparative quarter. The Secure Communications business area reported the largest increase in order bookings compared with the corresponding quarter in the preceding fiscal year.

Net sales rose 15.0% to SEK 265.1 million. Adjusted for currency fluctuations, the increase was 15.4%. All operating areas except Business Innovation contributed to this increase. Geographically, Sectra experienced particularly strong sales growth in Sweden and the UK during the first quarter. The positive trend in the Rest of Europe segment was mainly attributable to continued growth in Norway and Germany.

Sales-related Group eliminations amounted to a negative SEK 54.7 million (neg: 54.1). The eliminations mainly pertain to Group-financed managedservices agreements with customers in the Imaging IT Solutions business area.

Sales trend per operating area compared with the corresponding quarter in the preceding fiscal year

4 (19)

The Group's operating profit rose 38.0% to SEK 44.3 million. Adjusted for currency fluctuations, operating profit increased 38.9%. The operating margin rose 2.8 percentage points to 16.7%, which exceeded Sectra's financial goal of 15%. Imaging IT Solutions contributed to this positive earnings trend, with significantly higher operating profit than in the comparative quarter (refer to page 5). Sectra is making several future-oriented investments, focused on both geographic expansion and new product segments, such as digital pathology and critical infrastructure. These initiatives are having a negative impact on the operating margin. Although they are not expected to have a noticeable effect on growth over the next few years, they have considerable long-term potential.

The Group's net financial items declined SEK 14.5 million to an expense of SEK 15.5 million. Currency fluctuations had a negative impact of SEK 15.5 million (neg: 1.0) on the Group's financial items. Changes in the USD and GBP (refer to page 15) accounted for the largest currency effects. Despite a relatively large currency exposure, Sectra has chosen not to hedge its transactions given the company's stable finances. Accordingly, currency fluctuations have an immediate impact on financial figures rather than over time.

Profit after net financial items declined SEK 2.4 million to SEK 28.8 million, corresponding to a profit margin of 10.9%. Earnings per share totaled SEK 0.59 (0.65).

Seasonal variations

Sectra's seasonal variations entail that most of the company's invoicing and earnings are traditionally generated at the end of the fiscal year. However, these seasonal variations have diminished somewhat in recent years since a major portion of sales is derived from pay-per-use or pay-by-month agreements with long durations. In many cases, the equalization effect resulting from long-term managed-services agreements that are financed internally within the Group does not impact the business areas; instead it is essentially managed through the Parent Company's financing activities. The variations in order volumes in individual quarters can be substantial when customers sign extensive, multiyear agreements with the company, for example, for medical IT projects or for the development of encryption systems.

Financial position

Sectra has a strong cash balance and balance sheet. After adjustment for exchange-rate differences, the Group's cash and cash equivalents at the end of the reporting period amounted to SEK 278.0 million (248.1).

The Group's debt/equity ratio was 0.13 (0.11). Interest-bearing liabilities amounted to SEK 75.1 million (66.1) and pertained to convertible loans held by employees and Board members. During the first quarter, convertible loans totaling SEK 2.5 million were converted to shares (refer to page 10).

Operating profit, Group

SECTRA'S FINANCIAL GOALS

All of the financial goals have been achieved. Goals in order of priority:

2. Operating margin, %

3. Growth in operating profit per share

The Group's cash flow from operations after changes in working capital amounted to SEK 24.3 million (17.6). This change was primarily the result of improved cash flow from operations. Cash flow per share increased to SEK 0.64 (0.47) for the period.

Cash flow from investing activities was a negative SEK 10.6 million (neg: 12.0) for the period. These investments mainly pertained to assets in long-term Groupfinanced customer projects and development projects.

The Group's total cash flow was SEK 12.2 million (5.6), a change primarily attributable to improved cash flow from operations.

Investments, depreciation and amortization

Group investments during the period amounted to SEK 10.6 million (12.0). Investments primarily pertained to customer projects in the Group's financing activities and capitalized development costs. Depreciation/amortization for the period amounted to SEK 14.8 million (14.4).

Hardware-related investments in Group-financed customer projects during the period totaled a negative SEK 7.8 million (pos: 1.0), of which a negative SEK 14.3 million (neg: 3.3) was attributable to the impact of currency fluctuations on the size of the investment amounts. At the end of the period, the net carrying amount for Group-financed customer projects totaled SEK 132.2 million (144.8).

Capitalization of development costs during the period amounted to SEK 3.9 million (5.7). Amortization of capitalized development projects during the period amounted to SEK 4.1 million (4.2). At the end of the period, capitalized development costs totaled SEK 97.8 million (87.1).

IMAGING IT SOLUTIONS

	Q1 May-Jul 2017	Q1 May-Jul 2016	Change %	Rolling 12 months	Full-year May-Apr 2016/2017	Change %
Sales, SEK million	233.8	210.8	10.9	993.5	970.5	2.4
Operating profit, SEK
million	39.0	22.7	71.8	226.9	210.6	7.7
Operating margin, %	16.7	10.8	n/a	22.8	21.7	n/a
Average number of employees	474	466	1.7	465	464	0.2

Sales and earnings

Imaging IT Solutions entered the fiscal year with continuing positive trends for sales and earnings. Sales rose 10.9% to SEK 233.8 million compared with the corresponding quarter in the preceding year. The deployment of a major customer contract in the UK contributed to this positive change. Operating profit increased 71.8% to SEK 39.0 million, corresponding to an operating margin of 16.7% (10.8). In accordance with Sectra's aim, goods for resale (licenses and hardware from sub-suppliers) have decreased and are being replaced by service and license sales. This had a positive impact on the earnings trend of the business area during the first quarter. In addition, the comparative quarter was weak.

The business area is also implementing long-term growth initiatives in new product areas, such as digital pathology, and an expansion into additional geographic markets through the establishment of its own operations and through new distributors. These activities were charged to operating profit, but have the potential to contribute to an ongoing positive performance going forward.

Sales and operating profit

Market

Sectra's market segment in the area of medical IT systems and services is continuing to grow as a result of the population trend, the consolidation of healthcare resources and patient data, and the increased use of medical diagnostic imaging. To enable healthcare providers to provide better, faster and more patient-centered care, Sectra offers systems and services for the management and archiving of both radiology and non-radiology medical images, not least in the new field of digital pathology. A key component of the business area's growth strategy is medical imaging management in cancer diagnostics, a field of diagnostics expected to grow rapidly in the future. While most users are currently active in the fields of radiology and mammography, the number of customers in the field of histopathology is increasing at a rapid rate.

More than 1,700 healthcare providers worldwide use Sectra's medical systems and services, with customers including some of the largest healthcare providers in the world. The business area holds a strong position in IT systems for managing radiology images (PACS). Sectra has won the industry's most prestigious award for customer satisfaction for four consecutive years in this product segment, in which the business area currently holds a market-leading position in the Netherlands, Norway, Portugal and Sweden. Sectra is also the market leader in other countries in the niche of breast imaging management. In the UK, where the business area is now the second-largest player after securing a number of major long-term customer contracts in recent years, the current market is relatively stagnant. This is because most healthcare providers procured new systems in 2014-2016 when their previous agreements expired. While Sectra's market share in the US is still relatively small, its customer base is gradually growing.

The way forward

Offering customers stable, efficient and future-proof solutions for managing and communicating all types of medical images. Examples of the business area's focus activities:

• Maintain high customer satisfaction by continuously measuring and monitoring customer opinions about Sectra's products and support.
• Grow within radiology and other areas of medical imaging management by adding new customers in regions where Sectra already has an established customer base. This includes an increased focus on the US.
• Develop partnerships with existing customers through which Sectra's existing products and services can contribute to further efficiency enhancements. For example, sales of solutions for digital pathology and multimedia archives (VNA).
• Contribute to greater efficiency for customers by responding to demand for deliveries of IT solutions via the cloud, primarily in the form of software as a service (SaaS).
• Continued product development and broadening of the product portfolio. Special focus on medical imaging management in cancer diagnostics, not least in the field of digital histopathology.
• Greater internal efficiency. Partly by establishing a service-oriented organization that can support the sale of cloud solutions and partly through increased centralization and globalization to ensure optimal utilization of Sectra's specialist expertise.
• Continued geographic growth. During 2016/2017, the business area started its own organizations in France and Canada, and initiated new partnerships in South Africa, Poland and Russia.

SECURE COMMUNICATIONS

	Q1 May-Jul 2017	Q1 May-Jul 2016	Change %	Rolling 12 months	Full-year May-Apr 2016/2017	Change %
Sales, SEK million	28.4	18.0	57.8	116.1	105.7	9.8
Operating profit, SEK million	0.2	1.9	-89.5	0.0	1.7	-100.0
Operating margin, %	0.7	10.5	n/a	0.0	1.6	n/a
Average number of employees	75	64	17.2	67	64	4.7

Sales and earnings

The trend for Secure Communications is positive. Sales rose 57.8% to SEK 28.4 million compared with the corresponding quarter in the preceding year. This increase was mainly attributable to products and development assignments in the secure communications product area. Operating profit was charged with ongoing growth initiatives to broaden the business area's offering to the critical infrastructure product segment and expand into additional geographic markets.

Market

The ability to safely and efficiently transmit sensitive information is central to the stability and security of society. Sectra has extensive experience of protecting society's most critical communications and is a strong brand in the area of encryption and secure mobile communications. IT developments in society, political instability in the world and the growth of cybercrime are creating a greater need for Sectra's expertise and product offerings. The business area's growth strategy includes activities to expand into new geographic markets and broaden its offering to a new customer segment, namely cybersecurity for critical infrastructure. Sectra's services in critical infrastructure have been well received in the Nordic market and the number of customers is gradually increasing. The critical infrastructure operations were introduced in the 2015/2016 fiscal year and are currently in an establishment phase, but show considerable long-term potential.

Sweden and the Netherlands comprise the business area's largest markets. The business area's products for secure mobile communications are used in most European countries and by the EU and NATO. One example is Norway, where the Defense Forces received its first delivery of Sectra's Tiger/S products for secure mobile communications during the quarter. The business area's success is the result of close and long-lasting partnerships with customers as well as national security authorities in many countries. Being trusted to protect a nation's most sensitive information requires that the customer have a high degree of confidence in Sectra as a provider.

The way forward

Offering customers stable, accessible and easy-to-use solutions for critical IT security. Examples of the business area's focus activities:

• Increased sales of security-approved communication solutions in Finland, the Netherlands and the rest of Europe. This will be facilitated by the company's offering of a complete system concept with solutions for various security levels able to handle multiple security domains (groups of users with a regulatory right to access classified information) in a single unit, which simplifies user management.
• Partnership with Samsung to further develop the Sectra Tiger/R secure mobile telephony solution and enable the company's operations to be expanded into new customer segments for government authorities, critical infrastructure and private businesses.
• Growth in the area of critical infrastructure by offering security and threat analyses and system monitoring services for critical operating and control systems. Primarily focusing on the energy sector in the Nordic region and other areas of Northern Europe.

Sales and operating profit

BUSINESS INNOVATION

	Q1 May-Jul 2017	Q1 May-Jul 2016	Change %	Rolling 12 months	Full-year May-Apr 2016/2017	Change %
Sales, SEK million	11.2	14.5	-22.8	62.1	65.4	-5.0
Operating profit/loss, SEK million	-2.0	1.4	-242.9	1.6	5.0	-68.0
Operating margin, %	-17.9	9.6	n/a	2.6	7.7	n/a
Average number of employees	34	30	13.3	35	34	2.9

Business Innovation is Sectra's incubator for early-stage business units, projects and ideas that are not yet large enough to become independent business areas and are not a natural match with the existing business areas. This is where the company evaluates and utilizes opportunities to:

• Commercialize new technologies and new segments in the Group's core and related areas.
• Participate in research that can lead to a better quality of life for the individual, increased customer value and cost savings for healthcare and society.

The Business Innovation segment comprises the Medical Education and Orthopaedics business units as well as Sectra's research department. Sectra's patent portfolio is managed and developed within Business Innovation.

Sales and earnings

Business Innovation's sales declined 22.8%, which impacted its operating profit. This change was attributable to a reduction in product deliveries compared with the corresponding quarter in the preceding year.

Market

The Orthopaedics business unit offers IT systems for image-based planning and monitoring of orthopaedic surgery—for example, knee, hip and trauma surgery. Using 2D and 3D medical images, measurement tools and a library of more than 75,000 implant templates, orthopaedic surgeons can diagnose and plan orthopaedic procedures with greater accuracy. Sectra is currently the market leader in Scandinavia in this niche and commands a strong market position in several other countries, including the Netherlands and the UK. The business unit is also advancing its position in the US.

The Medical Education business unit delivers Sectra's visualization table to healthcare personnel, healthcare programs and veterinarians in more than 40 countries in Africa, Europe, the Middle East, China, North America, South America and South-East Asia. The offering includes a cloud-based education portal that gives the user access to images from actual patient cases from customers, such as universities, training centers and hospitals using Sectra's solution for medical education. Sales mainly take place through some 30 distribution partners.

Sectra's research department is currently participating in approximately ten research projects, including projects in orthopaedic surgery, digital pathology and artificial intelligence.

The way forward

Examples of focus activities in Business Innovation:

• Medical education—grow in key markets, such as China and the US, and expand into new markets. Essentially all sales outside Sweden are conducted through distributors.
• Orthopaedics—grow in the countries where the business unit has its own sales organization, increase sales of cloud-based services for planning joint replacement surgeries through collaboration with implant suppliers, and grow in the trauma segment through sales of new solutions for 3D image planning of acute surgical procedures.
• Research—research projects in product areas and technologies with the potential to generate business within three to five years. The team is also responsible for key research partnerships with universities and colleges.

Sales and operating profit

SECTRA CUSTOMER FINANCING

	Q1 May-Jul 2017	Q1 May-Jul 2016	Change %	Rolling 12 months	Full-year May-Apr 2016/2017	Change %
Sales, SEK million	34.8	30.7	13.4	124.4	120.3	3.4
Operating profit, SEK
million	0.7	1.8	-61.1	3.6	4.7	-23.4
Operating margin, %	2.0	5.9	n/a	2.9	3.9	n/a
Average number of	0	0	0	0	0	0
employees

Sectra Customer Financing is Sectra's unit for the financing of major managedservices agreements with healthcare customers and asset management.

Sales and earnings

This segment has a significant exposure to the GBP, which had a negative impact on its performance in the preceding fiscal year. Net sales rose 13.4% to SEK 34.8 million compared with the corresponding quarter in the preceding fiscal year. Adjusted for currency fluctuations, the corresponding increase was 20.5%. Since most of the financing activities pertain to multiyear customer contracts in the UK, the movement of the GBP in relation to the SEK also has a major impact on the operating area's future revenue.

The rapid growth of the area in recent years is linked to Imaging IT Solutions' successful sales of multiyear managed-services agreements for medical IT systems, particularly in the UK in 2014-2016. Financing of major managedservices agreements is usually handled by Sectra Customer Financing, which takes over projects after deployment and thereafter recognizes revenue and earnings over the duration of the managed-services agreement. Within Imaging IT Solutions, most of the revenue and expenses for managed-services agreements are recognized in conjunction with installation and deployment at the customer's site, which are then eliminated at the Group level. For more information, visit:

www.sectra.com/investor/about/operating\_area\_customer\_financing.html

OTHER OPERATIONS

	Q1 May-Jul 2017	Q1 May-Jul 2016	Change %	Rolling 12 months	Full-year May-Apr 2016/2017	Change %
Sales, SEK million	11.6	10.6	9.4	46.5	45.5	2.2
Operating loss, SEK million	-2.2	-2.7	18.5	-15.6	-16.1	3.1
Operating margin, %	-19.0	-25.5	n/a	-33.6	-35.4	n/a
Average number of employees	57	55	3.6	56	54	3.7

Other Operations pertain to Sectra's joint functions for administration, Group finances, IT, regulatory affairs, marketing communication and investor relations activities.

Sales and earnings

Sales and earnings from Other Operations were essentially on par with the comparative quarter.

Sales and operating profit

PARENT COMPANY

The Parent Company, Sectra AB, includes the operating segments Business Innovation and Sectra Customer Financing as well as the head office's functions for Group finances, IT, regulatory affairs, marketing communication and investor relations activities. The Parent Company's income statement and balance sheet are reported on page 17.

THE SHARE

Share-based incentive programs

On the balance-sheet date, Sectra's share capital totaled SEK 37,935,001 distributed between 37,935,001 shares. Of these shares, 2,620,692 are Class A shares and 35,314,309 are Class B shares. During the first quarter, holders of convertibles redeemed convertibles (2012/2017 program) totaling SEK 2.5 million, corresponding to 44,916 Class B shares. On full exercise of outstanding convertibles, the number of Class B shares will increase by 564,138, corresponding to 1.5% of the share capital and 0.9% of the voting rights in the company.

Authorization

The 2016 AGM authorized the Board, for the period until the next AGM, to decide on the new issue of not more than 3,700,000 Class B shares for consideration in the form of cash payment, offsetting of debt or contribution in kind whereby offsetting of debt and contribution in kind may deviate from shareholders' preferential rights. If the authorization is fully exercised, the dilution effect will be approximately 10% of the share capital and approximately 6% of the voting rights.

The AGM also resolved to authorize the Board, on one or more occasions, during the period until the next AGM, to make decisions on the acquisition and transfer of Class B treasury shares. A condition for the authorization is that the company's holding of treasury shares at no time exceeds 10% of all shares in the company.

At the time of publication of this interim report, the Board had not utilized this authorization.

2017 AGM AND SHARE REDEMPTION PROGRAM/PROPOSED DIVIDEND

2017 AGM

The AGM will be held on September 13, 2017 at 3:30 p.m. (CET) in Linköping, Sweden. The notice of the Meeting was published on August 10, 2017 by way of a press release and on Sectra's website (www.sectra.com/agm),,) where full proposals and other documents are also available. The notice was published in Post och Inrikes Tidningar on August 14, 2017, and an announcement that notice had been given was published in Svenska Dagbladet on the same date.

Proposed share redemption program/dividend for 2017

For the 2016/2017 fiscal year, the Board and the President propose that the AGM resolve to distribute SEK 4.50 per share to the shareholders through a 2:1 share split in combination with a mandatory redemption process. The corresponding distribution to the shareholders in the preceding year was SEK 4.50 per share. No ordinary dividend is proposed.

The proposal is in line with Sectra's dividend policy. At the end of the fiscal year, the Group's equity/assets ratio was 47.7%. The dividend policy and Sectra's financial goals state that the equity/assets ratio is to exceed 30%, and it will continue to do so, by a healthy margin, following a resolution in favor of the Board's proposed redemption process. If the AGM resolves on a share redemption program in accordance with the proposal, the comparable equity/assets ratio will amount to 38.7%. The Board deems that the company's current balance sheet and cash flow are of adequate strength to secure the development of the business, while providing the shareholders with a high return.

Schedule for the redemption process:

• September 13: Resolution by AGM
• September 29: Final day of trading in the Sectra share before the split, including redemption shares
• October 2: First day of trading in the Sectra share after the split, excluding redemption shares
• October 3: Record date for the share split. Each share to be divided into two shares, one of which is a redemption share
• October 4-13: Trading in redemption shares
• October 17: Record date to revoke redemption shares
• October 20: Preliminary date for payment of redemption settlement from Euroclear

For more information, visit www.sectra.com/agm.

FINANCIAL STATEMENTS

Accounting policies

This interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Securities Markets Act. The consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS) and statements from the International Financial Reporting Interpretations Committee (IFRIC) as approved by the EU Commission for application within the EU.

The accounting policies and calculation methods remain unchanged compared with those applied in the 2016/2017 Annual Report.

The Group applies the European Securities and Markets Authority (ESMA) Guidelines on Alternative Performance Measures. An alternative performance measures is a financial measure that is not defined or stipulated in applicable rules for financial reporting (such as IFRS or the Swedish Annual Accounts Act) and must therefore be explained in the financial statements. In accordance with these guidelines, the Group's alternative performance measures are defined on page 18 of the interim report. The Group applies alternative performance measures since the company believes they provide valuable supplementary information for management and investors given that they play a central role when it comes to understanding and evaluating the Group's operations.

Risks and uncertainties

Through its operations, Sectra is exposed to such business risks as dependence on major customers and partners, the effect of exchange rates on pricing in the markets in which the Group is active, and property and liability risks. Sectra is also exposed to various types of financial risks such as currency, interest-rate, credit and liquidity risks. A detailed description of the risks and uncertainties as well as Sectra's strategies and tactics for minimizing risk exposure and limiting adverse effects are provided in the Administration Report in the Group's Annual Report for the 2016/2017 fiscal year and in Note 30 on page 69. No significant events have occurred that would alter the conditions reported therein.

ASSURANCE

The Board of Directors and the President of Sectra AB (publ) hereby assure that the interim report for the period May to July 2017 provides a true and fair view of the Parent Company's and Group's operations, financial position and earnings and describes the significant risks and uncertainties facing the Parent Company and other companies in the Group.

Linköping, September 12, 2017

Torbjörn Kronander President, CEO and Board member	Carl-Erik Ridderstråle Chairman	Erika Söderberg Johnson Board member
Anders Persson Board member	Christer Nilsson Board member	Jakob Svärdström Board member
Jan-Olof Brüer Board member	Deborah Capello Board member, employee representative	Fredrik Häll Board member, employee representative

This report was not reviewed by the company's auditor.

FOR FURTHER INFORMATION

Contact Sectra's CEO Torbjörn Kronander, telephone +46 (0)13 23 52 27 or e-mail info.investor@sectra.se.

Presentation of the interim report

A teleconference will be held by Torbjörn Kronander, President and CEO of Sectra AB, and Mats Franzén, CFO of Sectra AB. The presentation will be held in English.

Time: September 12, 2017 at 10:00 a.m. (CET)

To participate, call:

SE: +46 8 56642690

UK: +44 2030089802

US: +1 8557532235

The report presentation can also be followed live online: www.sectra.com/irwebcast. You can also click on this link to watch to a recorded version after the conference.

Financial calendar, IR events and AGM

2017 AGM	September 13, 2017 at 3:30 p.m. (CET) in Linköping
Six-month interim report	December 8, 2017 at 8:00 a.m. (CET)
Nine-month interim report	March 6, 2018 at 8:00 a.m. (CET)
Year-end report 2017/2018	May 29, 2018 at 8:00 a.m. (CET)

For information on Sectra's financial reports and events, visit: www.sectra.com/investor/calendar/

This information constitutes information that Sectra AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and/or the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. (CET) on September 12, 2017.

Did you miss Sectra's 2016/2017 Annual Report when it was published in June? Download the report by clicking on the following link:

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GROUP FINANCIAL SUMMARY

Consolidated income statements

SEK thousand	3 months	3 months	12 months	Full-year
	May-Jul	May-Jul	Aug 2016-	May-Apr
	2017	2016	July 2017	2016/2017
Net sales	265,120	230,482	1,175,560	1,140,922
Capitalized work for own use	3,899	5,740	27,528	29,369
Reversal of contingent consideration	0	0	12,355	12,355
Other operating income	857	368	2,887	2,398
Goods for resale	-35,357	-30,440	-171,266	-166,349
Personnel costs	-132,467	-120,090	-554,841	-542,464
Other external costs	-42,997	-39,543	-208,705	-205,251
Depreciation/amortization and	-14,781	-14,378	-70,978	-70,575
impairment
Operating profit	44,274	32,139	212,540	200,405
Net financial items	-15,498	-965	-14,937	-404
Profit after net financial items	28,776	31,174	197,603	200,001
Taxes	-6,273	-6,859	-46,629	-47,215
Profit for the period	22,503	24,315	150,974	152,786
Profit for the period attributable to:
Parent Company owners	22,503	24,315	150,974	152,786
Non-controlling interest	0	0	0	0
Average, after dilution	38,499,139	38,341,746	38,459,791	38,420,443
Earnings per share Before dilution, SEK After dilution, SEK No. of shares Before dilution After dilution 1 Average, before dilution	0.59 0.58 37,935,001 38,499,139 37,920,029	0.65 0.63 37,686,105 38,341,746 37,625,182	3.99 3.93 37,935,001 38,499,139 37,846,576	4.04 3.98 37,890,085 38,499,139 37,772,864

1. Dilution of the number of shares is based on the convertible programs issued in 2013/2014 (49,574), 2014/2015 (158,226), 2015/2016 (219,736) and 2016/2017 (136,600). On full exercise of convertibles, the number of shares will increase by 564,138.

Consolidated statement of comprehensive income

SEK thousand	3 months May-Jul 2017	3 months May-Jul 2016	12 months Aug 2016- July 2017	Full-year May-Apr 2016/2017
Profit for the period	22,503	24,315	150,974	152,786
Items that may be reclassified to profit and loss Change in translation differences for the period from translating foreign subsidiaries	-17,877	161	-14,782	3,256
Total other comprehensive income for	-17,877	161	-14,782	3,256
the period Total comprehensive income for the	4,626	24,476	136,192	156,042
period

Consolidated balance sheets

SEK thousand	Jul 31,	Jul 31,	Apr 30,
Assets	2017	2016	2017
Intangible assets	176,231	186,572	182,053
Tangible assets	96,229	106,780	103,205
Financial assets	1,799	1,799	1,799
Deferred tax assets	27,291	36,188	30,283
Total fixed assets	301,550	331,339	317,340
Other current assets	564,832	518,922	571,903
Cash and cash equivalents	277,997	248,050	273,216
Total current assets	842,829	766,972	845,119
Total assets	1,144,379	1,098,311	1,162,460
Equity and liabilities
Equity (incl. profit for the period)	561,611	579,052	554,515
Provisions	28,459	39,955	30,318
Deferred tax liabilities	26,215	45,737	45,720
Long-term liabilities	56,611	50,095	56,611
Current liabilities	471,483	383,472	475,296
Total equity and liabilities	1,144,379	1,098,311	1,162,460

No changes have occurred in pledged assets and contingent liabilities since the 2016/2017 Annual Report.

Consolidated statement of changes in equity

3 months	3 months	Full-year
May-Jul	May-Jul	May-Apr
2017	2016	2016/2017
554,515	545,603	545,603
4,626	24,476	156,042
0	0	-169,588
2,470	8,973	22,458
561,611	579,052	554,515

Consolidated cash-flow statements

SEK thousand	3 months	3 months	Full-year
	May-Jul	May-Jul	May-Apr
	2017	2016	2016/2017
Cash flow from operations before changes in working capital	49,666	40,912	221,058
Cash flow from operations after changes in working capital	24,256	17,600	235,185
Investing activities	-10,596	-11,981	-59,553
Financing activities	-1,504	0	-146,084
Total cash flow for the period	12,156	5,619	29,548
Change in cash and cash equivalents
Cash and cash equivalents, opening balance	273,216	239,768	239,768
Exchange-rate difference in cash and cash equivalents	-7,375	2,663	3,900
Cash and cash equivalents, closing balance	277,997	248,050	273,216
Unutilized credit facilities	15,000	15,000	15,000

Alternative performance measures for the period and full-year

	3 months	3 months	12 months	Full-year
	Jul 31,	Jul 31,	Jul 31,	Apr 30,
	2017	2016	2017	2017
Order bookings, SEK million	227.6	225.5	1,179.8	1,177.7
Operating margin, %	16.7	13.9	18.1	17.6
Profit margin, %	10.9	13.5	16.8	17.5
Average number of employees	640	615	623	616
Cash flow per share, SEK	0.64	0.47	6.38	6.21
Cash flow per share after full dilution, SEK	0.63	0.46	6.28	6.11
Value added, SEK million	176.7	152.2	767.4	742.9
P/E ratio, multiple	n/a	n/a	38.2	40.2
Share price at end of period, SEK	152.5	133.0	152.5	162.5
Return on equity, %	4.0	4.1	27.1	27.8
Return on capital employed, %	4.6	4.8	31.4	32.2
Return on total capital, %	2.6	2.9	17.3	17.8
Equity/assets ratio, %	49.1	52.7	49.1	47.7
Liquidity, multiple	1.8	2.0	1.8	1.8
Equity per share, SEK	14.80	15.37	14.80	14.63
Equity per share after full dilution, SEK	14.59	15.10	14.59	14.40

Exchange rates

Currency	Average rates in SEK			Closing rates in SEK
	Q1	Q1	Change	Jul 31,	Jul 31,	Change
	2017/2018	2016/2017	12 months	2017	2016	12 months
US dollar, 1 USD	8.41	8.44	-0.4%	8.10	8.58	-5.6%
Euro, 1 EUR	9.64	9.40	2.6%	9.52	9.54	-0.2%
British pound, 1 GBP	10.91	11.61	-6.0%	10.62	11.34	-6.4%

Quarterly consolidated income statement and alternative performance measures

SEK million	2017/2018				2016/2017				2015/2016
	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Net sales	265.1	340.8	294.2	275.4	230.5	315.1	268.9	264.7	224.9
Capitalized work for own use	3.9	6.2	8.0	9.4	5.7	10.8	12.8	5.4	4.8
Reversal of contingent
consideration	0	0	12.4	0	0	0	0	0	0
Other operating income	0.9	0.8	1.1	0.1	0.4	1.5	0.4	0.4	1.0
Operating expenses	-210.8	-258.4	-241.3	-224.1	-190.1	-254.7	-224.4	-225.1	-189.5
Depreciation/amortization and
impairment	-14.8	-14.6	-27.1	-14.4	-14.4	-14.7	-13.7	-13.3	-9.8
Operating profit	44.3	74.8	47.1	46.4	32.1	58.0	44.0	32.1	31.4
Net financial items	-15.5	3.9	-1.3	-2.0	-0.9	-9.3	-7.1	2.5	3.1
Profit after net financial items	28.8	78.7	45.8	44.4	31.2	48.7	36.9	34.6	34.5
Tax on earnings for the period	-6.3	-19.8	-10.8	-9.8	-6.9	-5.4	-8.1	-7.8	-7.8
Profit for the period	22.5	58.8	35.0	34.6	24.3	43.3	28.8	26.8	26.7
Order bookings, SEK million	227.6	349.6	302.9	299.6	225.5	447.8	369.0	205.3	299.9
Operating margin, %	16.7	21.9	16.0	16.8	13.9	18.4	16.4	12.1	14.0
Cash flow per share, SEK	0.64	1.59	2.76	1.40	0.47	1.65	1.74	1.39	0.18
Cash flow per share after full
dilution, SEK	0.63	1.56	2.72	1.37	0.46	1.62	1.70	1.36	0.17
Earnings per share, SEK	0.59	1.55	0.92	0.92	0.65	1.15	0.77	0.72	0.71
Return on equity, %	4.0	10.7	6.8	7.0	4.1	7.5	5.1	4.8	4.2
Return on capital employed, %	4.6	12.6	7.8	7.9	4.8	7.7	5.9	5.7	5.1
Equity/assets ratio, %	49.1	47.7	45.8	45.4	52.7	49.5	49.5	54.1	60.8
Equity per share, SEK	14.80	14.63	12.87	11.73	15.37	14.55	13.74	13.61	17.68
Share price at end of period, SEK	152.5	162.50	153.00	139.50	133.00	110.75	105.75	105.00	119.00

Five-year summary

	2016/2017	2015/2016	2014/2015	2013/2014	2012/2013
Order bookings, SEK million	1,177.7	1,322.0	1,471.5	925.7	916.0
Net sales, SEK million	1,140.9	1,073.6	961.4	853.8	817.0
Operating profit, SEK million	200.4	165.5	150.3	128.1	85.9
Profit after net financial items, SEK million	200.0	154.8	164.4	141.5	86.6
Profit for the period after tax, SEK million	152.8	125.7	126.1	103.9	62.2
Operating margin, %	17.6	15.4	15.6	15.0	10.5
Profit margin, %	17.5	14.4	17.1	16.6	10.6
Earnings per share before dilution, SEK	4.04	3.35	3.38	2.80	1.68
Earnings per share after dilution, SEK	3.98	3.29	3.31	2.73	1.64
Dividend/redemption program per share, SEK	4.50	4.50	4.50	4.50	4.50
Share price at end of year, SEK	162.5	110.75	119.5	77.75	53.0
P/E ratio, multiple	40.2	33.0	35.3	27.8	31.5
Return on equity, %	27.8	21.7	20.6	16.3	8.6
Return on capital employed, %	32.2	24.2	25.1	21.1	11.6
Return on total capital, %	17.8	14.2	15.8	13.7	7.9
Equity per share before dilution, SEK	14.63	14.55	16.44	16.49	17.94
Equity per share after dilution, SEK	14.40	14.23	16.01	16.05	17.53
Equity/assets ratio, %	47.7	49.5	56.1	60.7	61.4

OPERATING SEGMENTS

Sales by business segment

SEK million	3 months May-Jul 2017	3 months May-Jul 2016	Rolling 12 months	Full-year May-Apr 2016/2017
Imaging IT Solutions	233.8	210.8	993.5	970.5
Sectra Customer Financing	34.8	30.7	124.4	120.3
Secure Communications	28.4	18.0	116.1	105.7
Business Innovation	11.2	14.5	62.1	65.4
Other Operations	11.6	10.6	46.5	45.5
Group eliminations	-54.7	-54.1	-167.0	-166.5
Total	265.1	230.5	1,175.6	1,140.9

Operating profit by business segment

SEK million	3 months	3 months	Rolling	Full-year
	May-Jul	May-Jul	12 months	May-Apr
	2017	2016		2016/2017
Imaging IT Solutions	39.0	22.7	226.9	210.6
Sectra Customer Financing	0.7	1.8	3.6	4.7
Secure Communications	0.2	1.9	0.0	1.7
Business Innovation	-2.0	1.4	1.6	5.0
Other Operations	-2.2	-2.7	-15.6	-16.1
Group eliminations	8.6	7.0	-4.0	-5.5
Total	44.3	32.1	212.5	200.4

Sales per geographic market

SEK million	3 months May-Jul	3 months May-Jul	Rolling 12 months	Full-year May-Apr
	2017	2016		2016/2017
Sweden	70.6	57.0	294.1	280.5
US	51.4	53.2	256.9	258.6
UK	47.8	38.6	194.0	184.8
Netherlands	19.2	15.5	90.3	86.6
Rest of Europe	64.0	51.9	281.0	268.9
Rest of World	12.1	14.3	59.3	61.5
Total	265.1	230.5	1,175.6	1,140.9

PARENT COMPANY

Parent Company income statements

SEK thousand	3 months	3 months	12 months	Full-year
	May-Jul	May-Jul	Aug 2016-	May-Apr
	2017	2016	July 2017	2016/2017
Net sales	23,339	25,081	107,086	108,828
Capitalized work for own use	0	753	3,652	4,405
Other operating income	366	365	1,837	1,836
Goods for resale	-2,815	-4,031	-15,018	-16,234
Personnel costs	-11,288	-9,684	-50,855	-49,251
Other external costs	-11,687	-11,375	-53,424	-53,112
Depreciation/amortization	-1,554	-879	-5,371	-4,696
Operating profit/loss	-3,639	230	-12,093	-8,224
Net financial items	-16,115	3,346	-9,448	10,013
Profit/loss after net financial items	-19,754	3,576	-21,541	1,789
Appropriations	0	0	204,339	204,339
Profit/loss before tax	-19,754	3,576	182,798	206,128
Tax on earnings for the period	4,404	-238	-39,284	-43,926
Profit/loss for the period	-15,350	3,338	143,514	162,202
Comprehensive income for the	-15,350	3,338	143,514	162,202
period
Parent Company balance sheets
SEK thousand		Jul 31,	Jul 31,	Apr 30,

	2017	2016	2017
Assets
Intangible assets	10,334	8,170	10,765
Tangible assets	18,040	13,700	15,477
Financial assets	238,285	288,111	285,663
Total fixed assets	266,659	309,981	311,905
Other current assets	443,886	398,376	423,799
Cash and cash equivalents	217,872	203,647	221,099
Total current assets	661,758	602,023	644,898
Total assets	928,417	912,004	956,803
Equity and liabilities
Equity (incl. profit for the period)	438,214	448,333	451,095
Untaxed reserves	87,629	168,351	87,629
Long-term liabilities	56,611	51,833	56,611
Current liabilities	345,963	243,487	361,468
Total equity and liabilities	928,417	912,004	956,803

Pledged assets and contingent liabilities

SEK thousand	Jul 31,	Jul 31,	Apr 30,
	2017	2016	2017
Chattel mortgages	11,000	11,000	11,000
Total pledged assets	11,000	11,000	11,000
Guarantees on behalf of Group companies	168,094	232,379	190,948
Total contingent liabilities	168,094	232,379	190,948

DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES

Equity per share:	Adjusted equity divided by the number of shares at the end of the period.
Equity per share after full dilution	Adjusted equity divided by the number of shares after full dilution.
Value added	Operating profit plus labor costs.
Adjusted equity	Recognized equity plus 78% of untaxed reserves.
Cash flow per share:	Cash flow from operations after changes in working capital divided by the number of shares at the end of the period.
Cash flow per share after full dilution	Cash flow from operations after changes in working capital divided by the number of shares after full dilution.
Liquidity	Current assets divided by current liabilities.
Average number of employees	Average number of full-time employees during the period.
Order bookings	Value of new orders received or changes to earlier orders during the reporting period.
P/E ratio:	Share price at the end of the period in relation to the 12-month period's earnings per share.
Return on equity	Profit after tax as a percentage of average adjusted equity.
Return on capital employed (ROCE)	Profit before tax plus financial expenses as a percentage of average capital employed.
Return on total capital	Earnings after net financial items plus financial expenses as a percentage of average total assets
Operating profit	Profit before net financial items and income tax.
Operating margin	Operating profit after depreciation/amortization as a percentage of net sales.
Debt/equity ratio:	Interest-bearing liabilities divided by equity.
Equity/assets ratio	Adjusted equity as a percentage of total assets.
Capital employed	Total assets reduced by non-interest-bearing liabilities.
Growth in operating profit per share over a five-year period	Operating profit per share on the balance-sheet date less operating profit per share on the balance-sheet date five years earlier divided by operating profit per share on the balance-sheet date five years earlier.
Earnings per share	Profit/loss after tax divided by the average number of shares. This performance measure is defined in accordance with IFRS.
Earnings per share before dilution	Profit/loss after tax divided by the average number of shares at the end of the period.
Earnings per share after dilution	Profit/loss after tax divided by the average number of shares at the end of the period after dilution.
Profit margin	Earnings after net financial items as a percentage of net sales.

GLOSSARY

Integrated diagnostics

Diagnostic collaboration between different medical specialties, for example, between pathologists and radiologists for diagnosing, treating and monitoring cancer patients.

Crypto

Equipment that uses mathematical manipulations (algorithms and keys) to encrypt information, so that it can be interpreted or read only by the intended recipient. In order to read encrypted information, the recipient must have the correct key and algorithm.

Critical infrastructure

Basic infrastructure that is essential for the functioning of society, such as roads, bridges and electricity and water supply.

Mammography

Mammography is an examination procedure used to detect breast cancer at an early stage in asymptomatic women.

Cloud

Cloud computing, meaning that computer power is distributed over the Internet or companyspecific intranets and not on individual computers.

Orthopaedics

A surgical specialty for disorders affecting the musculoskeletal system.

PACS (Picture Archiving and Communication System)

A system for managing medical images, primarily digital radiology images.

Pathology/histopathology/microscopy

A specialized medical area that uses tissues and body fluids for diagnostic purposes.

Radiology

A health science discipline and medical specialty that uses technologies for imaging the human body, such as X-ray, magnetic resonance imaging (MRI) and ultrasound.

VNA (Vendor-Neutral Archive)

IT solution for managing and archiving files such as medical images, audio files and film sequences in a shared multimedia archive.

About Sectra

Vision:

To contribute to a healthier and safer society.

Mission statements

To increase the effectiveness of healthcare, while maintaining or increasing the quality of care.

To strengthen the stability and efficiency of society's most important functions through solutions for critical IT security.

Business areas/business models

Imaging IT Solutions helps hospitals across the world to become more efficient, enabling them to care for more patients and save more lives. Increased use of medical images and aging populations that are living longer pose huge challenges to healthcare. Sectra's IT solutions and services for medical diagnostic imaging enable greater efficiency and contribute to healthcare advancements. Sectra has more than 1,700 installations of medical IT systems, and customers include some of the largest healthcare providers in the world.

Secure Communications helps society's critical functions to use modern technology to exchange information securely, thereby contributing to a stable and secure society. Sectra's solutions and services protect some of society's most sensitive information and communications. Several of the business area's products are approved by the EU, NATO and national security authorities.

Business Innovation gathers smaller activities that could eventually lead to major growth in Sectra's main areas or related niches.

Sectra Customer Financing is where the company's strong financial position is used to finance major managed-services agreements with

Group-wide strategies

• Customers and customer satisfaction are always assigned top priority in order to enable long-term growth.
• International expansion mainly in areas and regions where Sectra holds an established position. This will primarily be achieved through organic growth, supplemented by acquisitions that also strengthen the Group's organic growth.
• Expansion into new geographic markets following thorough analysis and at a controlled pace as Sectra achieves a strong position in existing markets.
• Close relationships with demanding customers to ensure that Sectra's solutions meet market demands for quality, functionality and usability.
• A strong, innovative corporate culture to attract and retain talented employees with the ability to solve our customers' problems and meet and in many cases, exceed—their expectations.
• Close collaboration with universities and research institutions to capture ideas and new product areas that Sectra's customers may find useful.

For more information, visit www.sectra.com/investor

Ten good reasons to invest in Sectra

• Growth potential in the healthcare, secure communications and critical infrastructure sectors.
• Established brand in niche areas, where customer confidence is a critical success factor.
• Stable, profitable company, with more than 50% of sales comprising recurring revenue from long-term customer contracts.
• Multinational reach and thousands of customers worldwide.
• High level of customer satisfaction and the aim to make customers even more satisfied.
• Products and services that contribute to improved quality of life and a safer society.
• Self-financed portfolio of exciting innovation projects with reported and controlled costs. While some of these projects are unlikely to succeed, a single success story would be sufficient to add significant value.
• Members of management are shareholders.
• Principal owner dedicated to the longterm development of the company.
• A very strong corporate culture based on the employees' expertise and attitudes and their drive to solve customer problems.

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