Sectra — Interim / Quarterly Report 2012

May 22, 2012

Sectra's year-end report 2011/2012:

Strong fourth quarter – operating profit doubled

IT and medical technology company Sectra reported a strong close of the 2011/2012 fiscal year. Consolidated operating profit for the fourth quarter rose 111.3% to SEK 46.8 million (22.1) and net sales increased 20.9% to SEK 238.5 million (197.3). Prior to the Annual General Meeting, the Board of Directors proposes that SEK 5.00 per share be transferred to the shareholders through a redemption program.

Order bookings for the fourth quarter amounted to SEK 188.2 million (126.6), up 48.7% compared with the corresponding quarter in the preceding fiscal year.

"Despite the challenging economic climate, our Medical Systems business area reported increased order bookings in the US and Northern Europe during the fourth quarter," says Jan-Olof Brüer, President and CEO of Sectra AB.

Capital gain boosts Sectra's profit

Sectra reported profit after tax of SEK 385.8 million for the 2011/2012 fiscal year, including discontinued operations. The company's earnings included a capital gain of SEK 322.6 million generated by Sectra's sale of its operations for the mammography modality MicroDose Mammography. Order bookings for 2011/2012 rose 11.1% to SEK 701.1 million (631.0) and net sales amounted to SEK 823.1 million. Operating profit totaled SEK 103.5 million, corresponding to an operating margin of 12.6%. Profit after net financial items amounted to SEK 127.9 million, corresponding to a profit margin of 15.5%.

Excluding a nonrecurring item attributable to the divestment of the MicroDose operations, Sectra's sales amounted to SEK 793.1 million (783.7) and operating profit to SEK 78.5 million (72.5), corresponding to an operating margin of 9.9% (9.3).

"We increased our profitability during the year through the divestment of the operations for lowdose mammography and began implementing internal efficiency-enhancement measures. We have now completed the divestment of MicroDose and can focus the organization on our core business," says Jan-Olof Brüer.

Higher direct return

Sectra maintained a healthy cash flow during the year and significantly strengthened its financial position. The Board of Directors and President propose that no regular dividend be paid for the 2011/2012 fiscal year and that the Annual General Meeting instead resolve to transfer SEK 5.00 per share to the shareholders through a redemption program. This would correspond to a direct return of 11.6%.

"The investments we have made in MicroDose Mammography previously impacted our cash flow. Following the divestment of this business, we are able to finance the development of our continuing operations in a secure manner, while also having the possibility to give our shareholders a favorable return," says Jan-Olof Brüer.

The information in this press release is such that Sectra AB (publ) is obligated to disclose in compliance with the Swedish Securities and Clearing Operations Act. The information was submitted for publication on May 22, 2012 at 8:00 a.m. (CET).

For further information, please contact

Jan-Olof Brüer, President and CEO of Sectra AB, Tel: +46 (0)13-23 52 09

About the Sectra Group

Sectra conducts successful development and sales of high technology products in the expansive niche segments of medical systems and secure communication systems. The company was founded in 1978 and grew from research carried out at Linköping University. Sectra has offices in twelve countries and sells its products through partners worldwide. Sales for full-year 2011/2012 amounted to SEK 823 million. Sectra is listed on the NASDAQ OMX Stockholm AB. For more information about Sectra, visit our website at: www.sectra.

Sectra AB (publ)

Teknikringen 20 SE 583 30 Linköping Tel: +46 (0)13 23 52 00 Fax: +46 (0)13 21 21 85 info@sectra.se www.sectra.se

Momsreg.nr SE556064830401

YEAR-END REPORT May 1, 2011 – April 30, 2012

FOURTH QUARTER: FEBRUARY – APRIL 2012

• Net sales increased 20.9% to SEK 238.5 million (197.3).
• Operating profit rose 111.3% to SEK 46.8 million (22.1), corresponding to an operating margin of 19.6% (11.2).
• Profit after net financial items amounted to SEK 50.3 million (21.0), corresponding to a profit margin of 21.1% (10.6).

Events during the fourth quarter

• Region Skåne ordered Sectra's IT system for managing medical images for an additional two departments at Skåne University Hospital.
• A milestone was achieved for Sectra's online services for analyzing osteoporosis: 1,000 women in Europe with a high risk of osteoporosis were identified.
• The Sahlgrenska Academy at the University of Gothenburg ordered Sectra's visualization table.
• The Dutch ministries extended their framework agreement for secure communication using Sectra's crypto products.

FISCAL YEAR: MAY 2011 – APRIL 2012

• Net sales amounted to SEK 823.1 million. This amount included a nonrecurring item of SEK 30 million, which was attributable to the divestment of the low-dose mammography operations, MicroDose.
• Operating profit totaled SEK 103.5 million, corresponding to an operating margin of 12.6%. Excluding the effect of the nonrecurring item, operating profit amounted to SEK 78.5 million (72.5).
• Profit after net financial items totaled SEK 127.9 million, corresponding to a profit margin of 15.5%.
• Earnings per share from remaining operations before dilution amounted to SEK 2.52 (1.31).
• Cash flow from operations before changes in working capital totaled SEK 153.5 million (25.6). The comparative period includes discontinued operations.
• The markets for Sectra's products are not growing in line with earlier forecasts, which means that Sectra will be unable to achieve its growth target – to grow an average of 15% over a seven-year period – until a later date.

Profit including discontinued operations

• Profit after tax including discontinued operations amounted to SEK 385.8 million (loss: 9.6). Earnings per share including discontinued operations and before dilution totaled SEK 10.47 (loss: 0.26).

SEK million	Q 4	Q 4	Change	Q 1-4	Q 1-4	Change
	2011/2012	2010/2011	%	2011/2012	2010/2011	%
Order bookings	188.2	126.6	48.7	701.1	631.0	11.1
Net sales	238.5	197.3	20.9	823.1	783.7	5.0
excluding nonrecurring item				793.1	783.7	1.1
Operating profit (EBIT)	46.8	22.1	111.3	103.5	72.5	42.8
excluding nonrecurring item				78.5	72.5	8.3
Operating margin, %	19.6	11.2	n/a	12.6	9.3	n/a
excluding nonrecurring item				9.9	9.3	n/a
Profit before tax (EBT)	50.3	21.0	139.5	127.9	70.2	82.2
excluding nonrecurring item				102.9	70.2	46.6
Profit margin, %	21.1	10.6	n/a	15.5	9.0	n/a
excluding nonrecurring item				13.0	9.0	n/a
Profit after tax	36.8	12.5	194.4	92.8	48.3	92.1
Earnings per share from remaining operations,
SEK1)	1.00	0.34	194.1	2.52	1.31	92.4
Profit from discontinued operations	0.0	-14.4	n/a	293.0	-57.9	n/a
Earnings/loss for the period including discontinued
operations	36.8	-1.9	2,036.8	385.8	-9.6	4,118.8
Earnings/loss per share for the period, SEK1)	1.00	-0.05	2,100.0	10.47	-0.26	4,126.9

1) Before dilution

SIGNIFICANT EVENTS AFTER THE CLOSE OF THE REPORTING PERIOD

• The Board of Directors and President propose that the Annual General Meeting transfer SEK 5.00 to shareholders through a redemption program. No ordinary dividend is proposed.

The reporting in this interim report pertains to remaining operations unless otherwise stated. Discontinued operations pertain to the subsidiary Sectra Mamea AB, which developed, produced and marketed the mammography modality MicroDose Mammography. Figures for the corresponding period in the preceding year are shown in parenthesis.

THE GROUP'S ORDER BOOKINGS, SALES AND EARNINGS

Fiscal year, May 2011 – April 2012

The Group's order bookings rose 11.1% to SEK 701.1 million (631.0). Order bookings developed favorably in Northern Europe. Targeted initiatives to promote growth in countries where Sectra holds a strong position or has the potential to become a market leader resulted in increased order bookings.

The Group's net sales amounted to SEK 823.1 million. This amount includes a nonrecurring item of SEK 30 million, which pertained to the Medical Systems business area's sale of assets attributable to the divestment of the operations for the mammography modality MicroDose Mammography. Excluding the nonrecurring item, net sales totalled SEK 793.1 million (783.7). Sectra's growing customer base continuously generates additional business and existing customers account for more than half of revenues. Long agreements for services, support and upgrades provide Sectra with a stable financial footing.

Operating profit for the period amounted to SEK 103.5 million, corresponding to an operating margin of 12.6%. The Secure Communication Systems business area continued to post an operating margin of 15% and the Medical Systems business area made a positive impact on increasing profitability through the sale of MicroDose and internal streamlining. Excluding the effect of the nonrecurring item, operating profit for the Group amounted to SEK 78.5 million (72.5), corresponding to an operating margin of 9.9% (9.3).

Profit after net financial items amounted to SEK 127.9 million (70.2), corresponding to a profit margin of 15.5%. Currency fluctuations had an impact of SEK 7.5 million (neg: 16.1) on the Group's financial items.

Profit after tax rose to SEK 92.8 million (48.3). Earnings per share before dilution amounted to SEK 2.52 (1.31).

Profit including operations being discontinued

On August 31, 2011, Sectra finalized the transaction with Royal Philips Electronics, which thus took over operations involving development and sales of the digital mammography system, Sectra MicroDose Mammography. Excluding the potential additional purchase consideration, the transaction generated a capital gain of SEK 322.6 million after tax for Sectra, based on carrying amounts, current fiscal year.

Discontinued operations reported profit after tax of SEK 293.0 million (neg: 57.9) for the period, including capital gains. Refer to Note 1 on page 16 for more information about operations being discontinued.

The Group's profit after tax, including discontinued operations, amounted to SEK 385.8 million (neg: 9.6). Earnings per share before dilution and including discontinued operations amounted to SEK 10.47 (neg: 0.26).

Fourth quarter, February – April 2012

The Group's order bookings for the quarter amounted to SEK 188.2 million (126.6), corresponding to an increase of 48.7% year-on-year. The increase was primarily attributable to Sectra's operations in the US and Sweden, both as regards new sales, extension of maintenance and upgrade agreements as well as additional sales to existing customers.

The Group's net sales for the quarter amounted to SEK 238.5 million (197.3), corresponding to an increase of 20.9%. The increase was primarily attributable to Sectra's Medical Systems business area.

Operating profit for the quarter increased by 111.3% and amounted to SEK 46.8 million (22.1), corresponding to an operating margin of 19.6% (11.2). Both of Sectra's business areas reported

an increase in operating profit year-on-year. In particular, Medical Systems posted an extremely strong ending to the fiscal year.

Profit after net financial items amounted to SEK 50.3 million (21.0). Currency fluctuations had an impact of SEK 1.3 million (neg: 6.1) on the Group's financial items.

Profit after tax amounted to SEK 36.8 million (12.5). Earnings per share before dilution amounted to SEK 1.00 (0.34).

Profit including discontinued operations

Discontinued operations recognized profit after tax of SEK 0.0 million (neg: 14.4) for the quarter. The Group's profit after tax and including discontinued operations amounted to SEK 36.8 million (neg: 1.9) for the quarter. Earnings per share before dilution and including discontinued operations amounted to SEK 1.00 (neg: 0.05).

Seasonal variations

Sectra is affected by seasonal variations, whereby most invoicing and earnings are traditionally generated at the end of the fiscal year. The variations in order volumes in terms of individual quarters can be substantial since Sectra has many large customers that sign comprehensive, long-term agreements with the company, for example, for medical IT projects or the development of encryption systems.

Current operations before nonrecurring items

Comments on the diagrams

Since Sectra has decided not to hedge currency flows, currency fluctuations have a direct impact on order bookings, sales and earnings. The strength of the SEK during 2011/2012 had a negative impact on order bookings, sales and earnings. In parallel, currency fluctuations during the same period had a positive impact on financial items. Combined with increased interest income, there was a more positive trend for profit after net financial items than for operating profit during the year.

SEGMENT REPORTING

Net sales by business segment
(SEK M)	3 months	3 months	Full-year	Full-year
	Feb - April	Feb - April	May - April	May - April
	2012	2011	2011/2012	2010/2011
Medical Systems	211.8	179.4	732.0	703.7
Excl. nonrecurring item2)	211.8	179.4	702.0	703.7
Secure Communication
Systems	32.1	31.3	101.8	111.8
Other operations1)	13.3	13.5	50.9	59.3
Group eliminations	-18.7	-27.0	-61.6	-91.1
Total remaining	238.5	197.2	823.1	783.7
operations
Excl. nonrecurring item2)	238.5	197.2	793.1	783.7
Discontinued operations
Note 1	-	30.9	23.5	127.2
Total	238.5	228.1	846.6	910.9

(SEK M)	3 months	3 months	Full-year	Full-year
	Feb - April	Feb - April	May - April	May - April
	2012	2011	2011/2012	2010/2011
Medical Systems	45.8	23.7	97.5	68.0
Excl. nonrecurring item2)	45.8	23.7	72.5	68.0
Secure Communication
Systems	6.7	4.7	15.3	16.8
Other operations1)	-2.2	-3.8	-9.0	-7.6
Group eliminations	-3.5	-2.4	-0.3	-4.7
Total remaining	46.8	22.1	103.5	72.5
operations
Excl. nonrecurring item2)	46.8	22.1	78.5	72.5
Discontinued operations
Note 1	-	-15.7	-23.8	-64.3
Total	46.8	6.4	79.7	8.2

Operating profit/loss per business segment

(SEK M)	3 months	3 months	Full-year	Full-year
	Feb - April	Feb - April	May - April	May - April
	2012	2011	2011/2012	2010/2011
Sweden	83.6	44.9	250.5	259.4
Excl. nonrecurring item2)	83.6	44.9	249.1	259.4
USA	45.0	51.1	168.1	209.8
Rest of Europe	85.0	95.0	335.2	275.1
Excl. nonrecurring item2)	85.0	95.0	306.6	275.1
Rest of world	24.9	6.2	69.3	39.4
Total 2)	238.5	197.2	823.1	783.7
Excl. nonrecurring item2)	238.5	197.2	793.1	783.7

Net sales by geographic market (remaining operations)

1) Other operations pertain to Sectra's operations for the financing of customer projects, asset management, the Parent Company's functions for Group finances and stock-exchange, share and investor relations activities.

2) The nonrecurring item is attributable to the discontinuation of the Sectra MicroDose business and had a positive effect on sales of SEK 30 million and on operating profit of SEK 25 million.

Medical Systems

Market

Sectra provides radiology, mammography, orthopaedic and rheumatology clinics with IT systems and services to enable care providers to use resources more efficiently and to coordinate geographically dispersed operations. More than 1,100 customers use Sectra's IT systems and services, including some of the world's largest care providers. An increasing portion of the business area's revenues derive from commitments to existing customers, both additional sales and long agreements for products and services, service, support and upgrades. About 55 million radiology examinations are managed annually using Sectra's systems, making Sectra one of the world's five largest suppliers of IT systems for processing digital radiology images.

The market for medical IT systems and services continues to expand as a result of the major need for systems that enhance efficiency for healthcare providers. Scandinavia and North America are Sectra's largest markets for Medical Systems. In the domestic market in Scandinavia, Sectra is by far the largest provider of IT systems for managing medical images (PACS).

In many European markets, uncertainty surrounding the economic trend and the need for public austerity measures has had a dampening effect on growth, also in the US. Despite the tough economic climate, Medical Systems continued its expansion in Northern Europe. Successes in Norway and the Netherlands led to Sectra strengthening its market position and Sectra is now the market-leading supplier of radiological IT systems (RIS/PACS) in these countries.

In the business area's principal business unit, radiological IT systems, Sectra's strategy is to primarily expand in markets where the company already holds a strong position, such as Northern Europe and North America and through partners in carefully selected geographical locations with substantial growth potential.

Online services that add substantial customer value

Sectra offers online services in "the cloud" for planning orthopaedic operations, diagnosis of osteoporosis in conjunction with mammographies and rheumatology diagnostics. In the fourth quarter, a key milestone was reached – 1,000 women with a high risk of osteoporosis in Europe identified with the aid of Sectra's online service for analysis of osteoporosis. 1,000 women who can now be given help to meet the development of this disease. Sales from these

services remain relatively minor in relation to the business area's major radiological IT operations, but do add significant customer value and possess great growth potential.

Activities to increase profitability

Measures that help to increase the business area's profitability and competitiveness have high priority. Sectra performs a number of activities that are designed to cut costs, increase sales volumes and broaden the product offering to existing customers. These include:

• Increasing the efficiency of work on installations and upgrades of Sectra's radiological IT systems.
• Investing in higher sales volumes through additional sales to existing customers, sales in more markets and new product and service offerings.
• Investing in medical image services online, a delivery model that is highly scalable and offers major cost and operational benefits to both customers and Sectra. This investment is primarily linked to services for analyzing osteoporosis and orthopedic planning. These areas are still small, but are where Sectra's services provide major customer value and where market potential is great.

In the fourth quarter, one of Sectra's major customers, Region Skåne, placed an order for Sectra's image management solution for two additional clinics at Skåne University Hospital. The order is an example of how Sectra assists customers in coordinating the management of other types of medical images than X-ray images.

Sales and earnings for the 2011/2012 fiscal year

Medical Systems' sales for the fiscal year amounted SEK 732.0 million. This amount includes a nonrecurring item of SEK 30 million attributable to divestment of the MicroDose operations. Excluding the nonrecurring item, sales amounted to SEK 702.0 million (703.7). Targeted initiatives enabled the business area to increase sales in Northern Europe and Australia. Sales in the US were impacted by the economic recession and customers' focus on introducing new systems for electronic patient journals that meet the"meaningful use" reqirements of the medical care and medical insurance reforms.

Operating profit totaled SEK 97.5 million. This amount includes the effect of the above nonrecurring item of SEK 25 million. Excluding the nonrecurring item, operating profit amounted to SEK 72.5 million (68.0), corresponding to an operating margin of 10.3% (9.7). Despite the negative impact on operating profit of an increased proportion of hardware sales and lower proportion of IT systems, Medical Systems increased its operating profit through internal streamlining measures. Efforts to streamline operations will continue in 2012/2013. The fiscal year was also dominated by activities to separate divested operations and was charged with costs for the divestment of Sectra Mamea AB.

Sales and earnings for the fourth quarter, February 2012 – April 2012 Medical Systems' sales for the quarter increased 18.1% to SEK 211.8 million (179.4). The change compared with the corresponding period in the preceding year was mainly due to increased revenues from operations in Scandinavia, the Netherlands and Australia.

Operating profit increased 93.2% to SEK 45.8 million (23.7), corresponding to an operating margin of 21.6% (13.2). A substantial number of customer projects were completed and commissioned during the quarter. Revenues from the license portion of these projects contributed to an increased operating margin.

Secure Communication Systems

Market

Sectra's crypto products are deployed by decision makers, government officials and defense forces in 17 European countries to protect telephone calls from eavesdropping. This makes Sectra the leading supplier of encrypted telephony to European authorities and defense forces.

Sweden and the Netherlands comprise Sectra's largest markets for crypto products. Growth in the market for Secure Communications Systems is driven by the fact that it is easier than ever to eavesdrop on phone calls, changes in regulations governing the handling of classified information and increasing numbers of authorities are choosing to protect their confidential, though unclassified, information. Due to growing collaboration between authorities in European countries, customers require products that support cross-border collaboration. Sectra offers products that are approved by the EU, NATO and several national security agencies.

In the fourth quarter, the Dutch ministries chose to extend their framework agreement, through which they purchase secure communication as a service from Sectra, for another two years.

Sales and earnings for the 2011/2012 fiscal year

Sales for the fiscal year totaled SEK 101.8 million (111.8). Operating profit amounted to SEK 15.3 million (16.8), corresponding to an operating margin of 15.0% (15.0). In Sweden, the security agency has produced new requirements and a regulatory framework that will increase IT security. This new requirement scenario delayed Sectra's ongoing delivery and development projects, which impacted sales and earnings for the year.

Sales and earnings for the fourth quarter, February 2012 – April 2012

Sales increased by 2.6% to SEK 32.1 million (31.3) for the quarter. Operating profit increased by 42.6% to SEK 6.7 million (4.7), corresponding to an operating margin of 20.9% (15.0).

Other operations

Other operations pertain to Sectra's operations for the financing of customer projects, asset management, and the Parent Company's functions for Group finances and stock-exchange, share and investor relations activities.

Sales and earnings for the 2011/2012 fiscal year

Net sales from other operations amounted to SEK 50.9 million (59.3) for the fiscal year. Operating loss for the period was SEK 9.0 million (loss: 7.6). The period was charged with costs for the divestment of the MicroDose operations.

Sales and earnings for the fourth quarter, February 2012 – April 2012 Net sales from other operations amounted to SEK 13.3 million (13.5) and operating loss totaled SEK 2.2 million (loss: 3.8) for the period.

COMMENTS ON THE FINANCIAL POSITION AND KEY FIGURES

Financial position

Sectra has a strong cash balance and balance sheet. The Group's cash flow from operations after changes in working capital amounted to SEK 148.6 million (44.9) for the fiscal year, and to SEK 28.4 million (21.6) for the fourth quarter. The comparative periods include discontinued operations. Cash flow from financing operations amounted to a negative amount of SEK 173.0 million (neg: 16.9) for the fiscal year. The change compared with the corresponding year-on-year period is linked to the redemption of shares totaling SEK 184.2 million that was implemented by Sectra in the third quarter. The Group's total cash flow for the fiscal year, including discontinued operations, amounted to SEK 393.5 million (7.4), of which SEK 24.4 million (16.2) pertained to the fourth quarter. The outcome for the fiscal year includes the cash purchase consideration from the sale of the MicroDose operations (Note 1 page 16). After adjustment for exchange-rate differences in cash and cash equivalents, the Group's cash and cash equivalents amounted to SEK 605.8 million (211.3).

The equity/assets ratio was 69.4% (61.0) at the close of the period and liquidity amounted to a multiple of 3.4 (2.1).

At the close of the period, the Group's interest-bearing liabilities amounted to SEK 34.6 million (23.4) and pertained to convertible debentures.

Investments

Group investments amounted to SEK 31.1 million (42.9) during the fiscal year, of which the fourth quarter accounted for SEK 4.1 million (5.5). Investments pertained particularly to customer projects in the Group's financing activities and capitalized development. The comparative periods include discontinued operations.

Investments in Group-financed customer projects during the year amounted to SEK 17.5 million (17.8), of which SEK 0.4 million (1.1) pertained to the fourth quarter. At the close of the period, the Group's carrying amount for customer projects totaled SEK 46.1 million (47.0).

During the fiscal year, capitalized work for own use amounted to SEK 10.6 million (8.6), of which SEK 1.6 million (0.4) pertained to the fourth quarter. At the close of the period, capitalized development costs amounted to SEK 55.8 million (59.8). The comparative period pertained to remaining operations.

Depreciation/amortization during the period amounted to SEK 43.4 million (41.3), of which SEK 11.7 million (12.1) pertained to the fourth quarter.

Employees

The number of full-time employees in Sectra's remaining operations increased by three persons during the quarter. At the close of the period, the number of full-time employees totaled 502 (500).

PARENT COMPANY

The Parent Company Sectra AB

The Parent Company includes the head office's functions for Group finances, as well as stock exchange, share and investor-relations activities.

Net sales in the Parent Company Sectra AB amounted to SEK 18.3 million (18.7) for the fiscal year. Profit after net financial items was SEK 403.0 million (67.8) and includes SEK 300.0 million in anticipated dividends from the Medical Systems business area and SEK 90.7 million (61.4) in Group contributions from subsidiaries. Currency fluctuations had a positive impact on the Parent Company's financial items of SEK 2.9 million (neg: 5.3).

Net sales in the Parent Company Sectra AB amounted to SEK 4.2 million (4.4) for the fourth quarter. Profit after net financial items amounted to SEK 391.8 million (63.4).

The Parent Company's income statement and balance sheet are reported on page 14.

THE SHARE

Share redemption program 2011

An Extraordinary General Meeting on November 22, 2011 resolved to transfer SEK 5 per share, a total of SEK 184.2 million, to shareholders through a 2:1 share split, combined with a mandatory redemption process and stock dividend to restore the share capital. The redemption process took place in December 2011.

New dividend policy

Sectra's Board of Directors adopted a new dividend policy in the second quarter. The new policy is as follows:

Sectra's dividend shall be adapted to the company's capital requirements for operation and growth, as well as to shareholders' desire for dividend. The objective is to provide shareholders with a stable and favorable dividend over time and to adapt the dividend to enable the company to achieve an equity/assets ratio that is never less than 30%.

The former policy was as follows; Sectra's dividend shall be well-weighed between the desire for direct return and the company's capital requirement for growth and international

expansion. In the long-term, the Board of Directors intends to distribute an average of 15-20% of the profit after tax to shareholders.

Share capital

Sectra's share capital at the close of the period amounted to SEK 36,842,088. At future full conversion and exercise of the implemented incentive programs, the number of shares will increase by a maximum of 1,074,425, corresponding to 2.9% of the share capital and 1.8% of the voting rights. After dilution, the share capital will amount to SEK 37,916,513.

Incentive programs

As a consequence of the redemption program completed in December 2011, in the fourth quarter, the Board of Sectra resolved on a recalculation of conversion prices pursuant to the terms and conditions for the convertible and employee stock option programs outstanding. Please refer to the information published on the company's website www.sectra.se under the tab Investor/Sectra share for current information regarding conversion prices.

The 2011 Annual General Meeting (AGM) resolved to issue new convertibles to the Group's employees and external Board members. The convertibles were subscribed during the period September 27 – October 6, 2011. Convertibles for a total of SEK 11.2 million were subscribed. At full exercise, the dilution effect of both convertible programs was 0.6% of the capital and 0.3% of the voting rights.

During the second quarter, 90,000 employee-stock options that were issued to employees in North America in 2008 matured without being exercised. During the fiscal year, Sectra also issued an additional 100,000 employee stock options for the Group's employees in North America. If these employee stock options are fully exercised, employees will acquire shares in the company corresponding to approximately 0.3% of the share capital and 0.2% of the voting rights.

Authorization

The 2011 AGM authorized the Board, for the period until the next AGM, to decide on the issue of not more than 3,700,000 Series B shares for consideration in the form of cash payment, offset or contribution in kind whereby offset 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 Series 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 the publication of this year-end report, the Board had not exercised these possibilities.

Annual General Meeting 2012 and notice

The 2012 Annual General Meeting will be held at 4:00 p.m. on June 28 at Collegium Konferens, Teknikringen 7 in Linköping, Sweden. Notice of the meeting will be given by way of a press release and an advertisement in Post och Inrikes Tidningar, and will be available on the company's website not later than four weeks prior to the meeting. Information that notice has been given will be published in Svenska Dagbladet.

Proposed dividend and redemption program

The Board and President propose that no regular dividend be paid and, instead, propose that the Annual General Meeting 2012 resolve that SEK 5.00 per share be transferred to shareholders through a 2:1 share split combined with a mandatory redemption process.

The proposal is in line with Sectra's dividend policy. At the end of the fiscal year, the Group's equity/assets ratio was 69.4%. The dividend policy and Sectra's financial targets state that the equity/assets ratio is to exceed 30%, which it will continue to do, by a healthy margin, even after

resolution in favor of the Board's proposed redemption process. It is the assessment of the Board that the company's existing balance sheet and cash flow are of more than adequate strength to secure the development of the business and provide shareholders with a healthy return.

Additional information regarding the proposed share split and mandatory redemption process will be published in the notification of the Annual General Meeting.

Nomination Committee

The 2011 AGM resolved to appoint a Nomination Committee comprising four members, of which one member is the Chairman of the Board and three members represent the largest shareholders in the company. In accordance with the resolution by the AGM, a Nomination Committee was appointed following consultation with the company's largest shareholders. The following members have been appointed to the Nomination Committee:

• Carl-Erik Ridderstråle, Chairman of the Board (convener)
• Jan-Olof Brüer, CEO of Sectra AB and representing the company's largest owner (Chairman)
• Gündor Rentsch, representing Frithjof Qvigstad
• Thomas Ehlin, representing Nordea Fonder

The Nomination Committee will prepare and submit proposals to the AGM:

• Election of and fees to be paid to the Chairman of the Board and other Board members
• Election of and fees to be paid to auditors and deputy auditors (when appropriate)
• Resolution on principles governing the composition of the Nomination Committee
• Chairman of the General Meeting

The Nominating Committee's proposal will be presented in the notice of the Annual General Meeting and be available on the company's website.

Annual Report

The Annual Report will be available on the company's website www.sectra.se on June 7, 2012. It will be distributed by post in week 25 to new shareholders and those shareholders who have registered an interest in receiving financial reports. The printed version can be ordered at the following address:

Sectra AB Teknikringen 20 SE-583 30 Linköping Telephone +46 (0) 13 - 23 52 00 E-mail info@sectra.se

FUTURE

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, loan 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, is provided in the Group's Annual Report for the 2010/2011 fiscal year, Note 29, page 48. No significant events have occurred that would alter the conditions reported therein.

Outlook and financial targets

Sectra has a strong technical platform. The products and system solutions that Sectra develops are aimed at markets with high growth potential. The company's strong position in the Scandinavian home market provides a solid platform for ongoing international expansion.

Sectra's long-term financial targets are:

• An operating margin of at least 15%.
• An average annual growth rate of 15% for a seven-year period.
• An equity/assets ratio of at least 30%.

The Group's financial targets were revised by the Board in autumn 2010. At that time, the Board's assessment was that Sectra was well-positioned to reach the new targets within a period of about three years based on expected market developments. Sectra's products and services enhance the efficiency of and reduce costs for customers' operations, which, in the long-term, means continued growth in our markets. However, the weak economic situation in Southern Europe and the past year's weakness in the US economy mean that the markets for Sectra's products are not growing in line with previous expectations, which , in turn, means that Sectra's ability to reach the growth targets has shifted forward in time.

FOR MORE INFORMATION

CEO Jan-Olof Brüer Telephone +46 13 - 23 52 09

Presentation of the year-end report

Sectra's CEO will present this year-end report for analysts, investors and the media at 12:00 noon (CET) on May 22 at Operaterrassen in Stockholm. The presentation can also be viewed online from Sectra's website www.sectra.se.

Financial calendar

Annual General Meeting June 28, 2012 Three-month report September 4, 2012 Six-month report December 4, 2012 Nine-month report March 5, 2013 Year-end report May 21, 2013

Consolidated income statements

	3 months	3 months	Full-year	Full-year
SEK thousands	Feb - April	Feb - April	May - Apr	May - Apr
	2012	2011	2011/20121)	2010/2011
Net sales	238,470	197,318	823,090	783,691
Capitalized work for own use	1,570	432	10,586	8,598
Goods for resale	-44,112	-20,490	-158,381	-114,077
Personnel costs	-96,682	-99,930	-385,467	-402,906
Other external costs	-40,740	-43,058	-142,974	-161,474
Depreciation/amortization	-11,718	-12,129	-43,389	-41,288
Operating profit	46,788	22,141	103,465	72,544
Net financial items	3,491	-1,134	24,390	-2,371
Profit after net financial items	50,279	21,007	127,855	70,173
Taxes	-13,442	-8,516	-35,007	-21,874
Earnings for the period from	36,837	12,491	92,848	48,299
remaining operations
Profit/loss from	-	-14,363	292,967	-57,916
discontinued operations Note 1
Earnings/loss for the period	36,837	-1,872	385,815	-9,617
Earnings/loss for the period
attributable to:
Parent Company owners	36,837	-1,872	385,815	-9,617
Non-controlling interest	0	0	0	0
Earnings per share remaining
operations
Before dilution, SEK	1.00	0.34	2.52	1.31
After dilution, SEK	0.97	0.33	2.46	1.29
Earnings/loss per share including
operations held for sale
Before dilution, SEK	1.00	-0.05	10.47	-0.26
After dilution, SEK	0.97	-0.05	10.23	-0.26
No. of shares
Before dilution	36,842,088	36,842,088	36,842,088	36,842,088
After dilution 2)	37,916,513	37,633,488	37,916,513	37,633,488
Average, before dilution	36,842,088	36,842,088	36,842,088	36,842,088
Average, after dilution 2)	37,893,971	37,633,488	37,707,909	37,536,405

1) The amounts include a nonrecurring item that had a positive impact of SEK 30 million on sales and SEK 25 million on operating profit.

2) Dilution is based on the convertible debentures programs issued in 2009/2010 (403,608), 2010/2011 (145,727) and 2011/2012 (225,090) and on employee stock options issued in 2009/2010 (100,000), 2010/2011 (100,000) and 2011/2012 (100,000).

Consolidated Statement of Comprehensive Income

	3 months	3 months	Full-year	Full-year
SEK thousands	Feb - April	Feb - April	May - Apr	May - Apr
	2012	2011	2011/2012	2010/2011
Earnings for the period	36,837	-1,872	385,815	-9,617
Other comprehensive income
Change in translation differences from	754	-10,575	14,408	-25,834
translating foreign subsidiaries
Total other comprehensive income	754	-10,575	14,408	-25,834
for the period
Total comprehensive income for the	37,591	-12,447	400,223	-35,451
period

Consolidated Balance Sheets

SEK thousands	Apr 30,	Apr 30,
	2012	2011
Assets
Intangible assets	65,784	195,073
Tangible assets	53,647	60,175
Financial assets	3,639	4,335
Deferred tax assets	9,164	1,739
Total fixed assets	132,234	261,322
Other current assets	396,083	461,061
Cash and cash equivalents	605,757	211,341
Total current assets	1,001,840	672,402
Total assets	1,134,074	933,724
Equity and liabilities
Equity (including total comprehensive income for the period)	787,392	569,537
Provisions	594	5,627
Deferred tax liabilities	27,872	15,328
Long-term liabilities	17,260	23,406
Current liabilities	300,956	319,826
Total equity and liabilities	1,134,074	933,724

No changes have occurred in pledged assets and contingent liabilities since the 2010/2011 Annual Report.

Consolidated Statement of Changes in Equity

	Full-year	Full-year
SEK thousands	May - Apr	May - Apr
	2011/2012	2010/2011
Equity at start of period	569,537	602,568
Comprehensive income for the period	400,223	-35,451
Share-related payments	1,842	2,420
Redemption of shares	-184,210	0
Equity at the end of the period	787,392	569,537

Consolidated Cash-flow Statements

	Full-year	Full-year1)
SEK thousands	May - Apr	May - Apr
	2011/2012	2010/2011
Cash flow from operations before changes in working capital	153,545	25,623
Cash flow from operations after changes in working capital	148,580	44,852
Investing activities	-31,103	-20,547
Financing activities	-173,042	-16,898
Cash flow for the period	-55,565	7,407
Cash flow from operations being discontinued:
Current operations	-17,620	-
Investing activities	466,715	-
Financing activities	-	-
Note 1 Cash flow for the period from operations being discontinued	449,095	-
Total cash flow for the period	393,530	7,407
Change in cash and cash equivalents
Cash and cash equivalents, opening balance	211,341	193,024
Exchange-rate difference in cash and cash equivalents	886	10,910
Cash and cash equivalents, closing balance	605,757	211,341
Unutilized credit facilities	15,000	15,000

1) The comparative period includes discontinued operations.

Key Figures

	Full-year	Full-year
	Apr 30,	Apr 30,
	2012	2011
Order bookings, SEK M	701.1	631.0
Operating margin, %	12.6	9.3
Operating margin excluding nonrecurring items, %	9.9	9.3
Profit margin, %	15.5	9.0
Profit margin excluding nonrecurring items, %	13.0	9.0
Average number of employees	500	496
Cash flow per share, SEK	4.17	2.24
Cash flow per share after full dilution, SEK	4.05	2.19
Value added, SEK M	485.0	475.5
P/E ratio, multiple	17.1	26.0
Share price at end of period, SEK	43.0	34.0
Including discontinued operations:
Return on equity, %	58.0	-1.6
Return on capital employed, %	59.7	-1.1
Return on total capital, %	40.8	-0.7
Equity/assets ratio, %	69.4	61.0
Liquidity, multiple	3.4	2.1
Cash flow per share, SEK	3.34	0.70
Cash flow per share after full dilution, SEK	3.24	0.68
Equity per share, SEK	21.37	15.46
Equity per share after full dilution, SEK	20.77	15.13

Quarterly consolidated income statements and key figures

			2011/2012				2010/2011			2009/2010
SEK M	Q4	Q3	Q2 1)	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Net sales	238.5	196.1	219.2	169.3	197.3	200.7	212.9	172.8	223.1	178.3	177.8	174.7
Capitalized work for own use	1.6	2.6	5.7	0.7	0.4	2.2	2.4	3.5	1.0	3.4	6.0	4.7
Operating expenses	-181.6	-182.4	-169.4	-153.4	-163.5	-176.0	-179.6	-159.3	-177.8	-156.1	-146.5	-147.8
Depreciation/amortization	-11.7	-10.9	-10.6	-10.2	-12.0	-11.2	-10.0	-8.0	-6.9	-7.8	-6.3	-4.1
Operating profit	46.8	5.4	44.9	6.5	22.1	15.7	25.7	9.0	39.4	17.8	31.0	27.5
Net financial items	3.5	6.9	4.2	9.8	-1.1	-1.0	-4.1	3.9	-1.2	7.0	-3.8	-4.6
Earnings after net	50.3	12.3	49.1	16.2	21.0	14.7	21.6	12.9	38.2	24.8	27.2	22.9
financial items
Tax on earnings for the
period	-13.4	-3.3	-14.0	-4.3	-8.4	-4,9	-5.7	-2.9	-29.0	-0.9	1.7	-0.9
Earnings for the period	36.8	9.0	35.1	11.9	12.6	9.8	15.9	10.0	9.2	23.9	28.9	22.0
from remaining
operations
Profit/loss from	-
discontinued operations		-	310.0	-17.0	-14.5	-19.5	-15.7	-8.2	1.1	-22.2	-26.2	-19.4
Earnings for the period	36.8	9.0	345.1	-5.1	-1.9	-9.7	0.2	1.8	10.3	1.7	2.7	2.6
Operating margin, %	19.6	2.8	20.5	3.8	11.2	7.8	12.1	5.2	17.6	10.0	17.4	15.8
Cash flow per share, SEK	1.38	0.97	1.48	0.35	0.81	0.41	0.58	0.43	0.49	0.37	0.10	0.06
Cash flow per share after
full dilution, SEK	1.34	0.94	1.44	0.34	0.80	0.41	0.57	0.42	0.48	0.37	0.10	0.06
Earnings per share, SEK	1.00	0.24	0.95	0.32	0.34	0.27	0.43	0.27	0.25	0.65	0.78	0.60
Including discontinued
operations:
Return on equity, %	5.8	1.1	46.3	-0.9	-0.3	-1.6	0.0	0.3	1.7	0.3	0.1	0.4
Return on capital	6.3	1.5	47.8	-1.1	0.3	-2.0	0.1	0.3	2.6	0.5	0.2	1.6
employed, %
Equity/assets ratio, %	69.4	68.2	75.0	64.1	61.0	63.5	63.6	64.7	62.2	62.6	65.6	65.1
Cash flow per share, SEK	1.25	0.97	1.25	-0.13	0.12	0.13	0.16	0.28	0.49	0.37	0.10	0.06
Equity per share, SEK	21.37	20.34	24.94	15.55	15.46	15.78	16.16	16.40	16.36	16.24	16.09	16.20

1) The amounts include a nonrecurring item that had a positive impact of SEK 30 million on sales and SEK 25 million on operating profit.

Five-year summary

	2011/2012	2010/2011	2009/2010	2008/2009	2007/2008
Order bookings, SEK M	701.1	631.0	766.7	1,080.6	947.6
Net sales, SEK M	823.1	783.7	753.9	777.0	688.0
Operating profit, SEK M	103.5	72.5	115.7	120.4	150.6
Earnings after net financial items, SEK M	127.9	70.2	113.0	200.0	183.2
Earnings after tax from remaining	92.8	48.3	84.0	143.9	125.7
operations, SEK M
Operating margin, %	12.6	9.3	15.3	15.5	21.9
Profit margin, %	15.5	9.0	15.0	25.7	26.6
Earnings per share before dilution, SEK	2.52	1.31	2.28	3.90	3.41
Earnings per share after dilution, SEK	2.46	1.29	2.24	3.84	3.34
Dividend per share, SEK		0.00	0.00	0.00	0.50
Share price at year end, SEK	43.0	34.0	37.3	38.8	58.5
P/E ratio, multiple	17.1	26.0	16.4	9.9	17.2
Including discontinued operations:
Earnings for the period, SEK M	385.8	-9.6	17.2	50.5	50.5
Return on equity, %	58.0	-1.6	2.9	8.7	9.3
Return on capital employed, %	59.7	-1.1	3.9	11.6	13.8
Return on total capital, %	40.8	-0.7	2.5	7.4	8.9
Equity per share before dilution, SEK	21.37	15.46	16.36	16.26	15.22
Equity per share after dilution, SEK	20.77	15.13	16.11	16.06	14.93
Equity/assets ratio, %	69.4	61.0	62.2	59.4	56.9

Parent Company Income Statements

	3 months	3 months	Full-year	Full-year
SEK thousands	Feb - April	Feb - April	May - Apr	May - Apr
	2012	2011	2011/2012	2010/2011
Net sales	4,215	4,396	18,281	18,654
Personnel costs	-2,391	-3,282	-10,468	-9,030
Operating expenses	-4,505	-4,510	-18,064	-18,764
Depreciation/amortization	-52	-55	-211	-231
Operating loss	-2,733	-3,451	-10,462	-9,371
Net financial items	394,556	66,810	413,496	77,122
Profit after net financial items	391,823	63,359	403,034	67,751
Appropriations	-14,229	1,874	-14,229	1,874
Profit before tax	377,594	65,233	388,805	69,625
Tax on earnings for the period	-20,692	-17,712	-22,812	-18,867
Earnings for the period	356,902	47,521	365,993	50,758

Parent Company Statement of Comprehensive Income

	3 months	3 months	Full-year	Full-year
SEK thousands	Feb - April	Feb - April	May - Apr	May - Apr
	2012	2011	2011/2012	2010/2011
Earnings for the period	356,902	47,521	365,993	50,758
Other comprehensive income
Fund for fair value	-698	-8,197	12,977	-22,189
Total other comprehensive income	-698	-8,197	12,977	-22,189
for the period
Total comprehensive income for the period	356,204	39,324	378,970	28,569

Parent Company Balance Sheets

SEK thousands	Apr 30,	Apr 30,
	2012	2011
Assets
Tangible assets	347	558
Financial assets	152,822	160,987
Total fixed assets	153,169	161,545
Other current assets	191,056	290,972
Cash and cash equivalents	480,668	815,410
Total current assets	671,724	1,106,382
Total assets	824,893	1,267,927
Equity and liabilities
Equity (including earnings for the period)	653,184	458,424
Deferred tax liabilities	110,191	95,962
Long-term liabilities	17,260	23,406
Current liabilities	44,258	690,135
Total equity and liabilities	824,893	1,267,927

Pledged assets and contingent liabilities

Apr 30,	Apr 30,
2012	2011
11,000	11,000
11,000	11,000
308,903	332,944
308,903	332,944

Definition of key figures

Adjusted equity	Reported shareholders' equity increased by 73.7% of untaxed reserves.
Capital employed	Total assets reduced by non interest-bearing liabilities.
Cash flow per share	Cash flow from operations before changes in working capital divided by the number of shares
	at the end of the period.
Earnings per share	Profit/loss after tax divided by the average number of shares.
Equity/assets ratio	Equity as a percentage of total assets.
Equity per share	Equity divided by the number of shares at the end of the period.
Liquidity	Current assets divided by current liabilities.
P/E ratio	Share price at the end of the period in relation to the 12-month period's earnings per share.
Profit margin	Profit after net financial items as a percentage of net sales.
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	Profit after net financial items plus financial expenses as a percentage of average total assets.
Value added	Operating profit plus labor costs.

Note 1 Discontinued operations

In June 2011, Sectra and Royal Philips Electronics signed an agreement entailing that Philips would acquire Sectra's operations for development and sales of the mammography modality Sectra MicroDose Mammography. Philips took over the operations in conjunction with the finalization of the transaction on August 31, 2011. The operation included the company Sectra Mamea AB and related operations in Sectra's global sales and service organization, excluding Australia and New Zealand, where Sectra continues to sell MicroDose Mammography through a separate distribution agreement with Philips. The operation had approximately 110 employees. Sectra Mamea AB reported sales of SEK 127 million for the 2010/1011 fiscal year, corresponding to 14% of Sectra's Group sales. Operations that were conducted in Sectra Mamea AB are reported as discontinued operations.

The cash purchase consideration, on a debt-free basis, amounted to EUR 57.5 million, including the sale of assets attributable to the discontinuation of the MicroDose business. The agreement includes an additional purchase consideration of EUR 12.5 million, which will fall due in five years if specific agreement conditions are fulfilled. For the current year, the transaction generated, excluding the potential additional purchase consideration, capital gains for Sectra totaling SEK 322.6 million after tax, based on carrying amounts.

Revenues and profit

During the fourth quarter, the revenue from discontinued operations amounted to SEK 0.0 million (34.0). The operating result was SEK 0.0 million (loss: 15.7). The revenue from discontinued operations amounted to SEK 26.9 million (138.9). The operating result was a loss of SEK 23.8 million (loss: 64.3). The operation was impacted substantially by the transfer to Philips. Ongoing transactions were disposed of in order to facilitate and simplify the transition, which involved postponing business events until after the Philips' acquisition had been finalized.

Profit from discontinued operations

	3 months	3 months	Full-year	Full-year
SEK thousands	Feb - April	Feb - April	May - Apr	May - Apr
	2012	2011	2011/2012	2010/2011
Net sales	-	30,926	23,484	127,196
Capitalized work for own use	-	3,109	3,425	11,752
Goods for resale	-	-21,208	-16,421	-82,993
Personnel costs	-	-12,028	-19,883	-55,033
Other external expenses	-	-11,558	-14,398	-43,216
Depreciation/amortization of fixed assets	-	-4,902	-	-22,011
Operating loss	-	-15,661	-23,793	-64,305
Net financial items	-	-3,694	-5,804	-13,933
Loss before tax	-	-19,355	-29,597	-78,238
Taxes	-	4,992	-	20,322
Loss for the period	-	-14,363	-29,597	-57,916
Capital gain on divestment	-	-	322,564	-
Taxes	-	-	-	-
Total profit/loss from discontinued	-	-14,363	292,967	-57,916
operations

Accounting policies

This interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, the 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) that have been approved by the EU Commission for application within the EU. The accounting policies and calculation methods are unchanged compared with those applied in the 2010/2011 Annual Report with the exception that IFRS 5, Non-current assets held for sale and discontinued operations has now been applied. New policies and amendments that have come into effect as of the 2011/2012 fiscal year have had no impact on the financial statements.

The Board of Directors and the President of Sectra AB (publ) hereby assure that the year-end report for the period May 2011 - April 2012 provides a true and fair view of the Parent Company's and Group's operations, financial position and earnings and describes the material risks and uncertainties facing the Parent Company and other companies in the Group.

This year-end report has not been reviewed by the company's auditors.

Linköping, May 22, 2012

Board of Directors of Sectra AB (publ)

The information in this press release is such that Sectra AB (publ) is obligated to disclose in compliance with the Swedish Securities and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was submitted for publication on May 22, 2012 at 8:00 a.m. (CET).

Sectra AB (publ)

Teknikringen 20 SE 583 30 Linköping Tel: +46 (0)13 23 52 00 Fax: +46 (0)13 21 21 85 info@sectra.se www.sectra.se Momsreg.nr SE556064830401