Sectra — Interim / Quarterly Report 2013

Mar 5, 2013

Press release Linköping, March 5, 2013

Sectras nine-month interim report 2012/2013:

Sectra increases order bookings and improves earnings

The IT and medical technology company Sectra reported a strong third quarter of the 2012/2013 fiscal year, compared with the year-earlier period. Order bookings rose 77% to SEK 232.9 million (131.5). Net sales increased 4% to SEK 205.2 million (196.1) and operating profit was up 290% to SEK 21.1 million (5.4). The results correspond to an operating margin of 10.3% (2.8).

"Our positive earnings trend is primarily the result of our Medical Systems business area reducing the share of hardware sales to the benefit of increased sales of software licenses and services, which contributed to a higher operating margin. Accordingly, on a rolling 12 month basis, we achieved an operating margin of 11.8%," says Torbjörn Kronander, President and CEO of Sectra AB.

For the nine-month period, Sectra's net sales rose 2% to SEK 568.9 million (554.6) and the operating profit increased 52% to SEK 48.2 million (31.7). The result corresponds to an operating margin of 8.5% (5.7). The exchange and interest-rate trend had a negative impact on the Group's net financial items, and profit before tax was SEK 45.4 million (52.6), corresponding to a profit margin of 8.0% (9.5). The comparisons relate to the result in the year-earlier period, excluding a nonrecurring item attributable to the divestment of the MicroDose business.

Despite the continued weak growth in the global economy, and Europe in particular, Sectra's order bookings for the nine-month period rose 10% to SEK 566.1 million.

"While we have received several strategic orders in recent months, the fluctuations between the quarters are major. In the preceding fiscal year, we ended the year with an exceptionally strong fourth quarter, but in the current year we expect to close on a more normal note," says Torbjörn Kronander.

Sectra's growth strategy primarily involves expanding in the markets in which the company already has an established position, such as northern Europe and North America, and through business partners in specially selected growth markets.

After the third quarter, Sectra signed a multi-year agreement with the UK-based care consortium Salisbury, Wight and South Hampshire Domain NHS Trust.. The order pertains to a region-wide IT solution for the effective management and communication of medical images.

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 March 5, 2013, at 8:00 a.m. (CET).

For further information

Torbjörn Kronander, President and CEO of Sectra AB, Tel: +46 (0)13-23 52 27

About the Sectra Group

Sectra conducts successful development and sales of high technology products and services in the niche segments of medical IT and secure communication. 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 the full-year 2011/2012 amounted to SEK 823 million. Sectra is listed on NASDAQ OMX Stockholm AB exchange. For more information about Sectra, visit our website at: www.sectra.se.

Sectra AB (publ)

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

INTERIM REPORT FOR THE NINE-MONTH PERIOD May 1, 2012– January 31, 2013

	The quarter			The interim period			12 months
SEK million	Q3	Q3	Change	Q1-3	Q1-3	Change	Rolling	Full-year	Change
	2012/2013	2011/2012	%	2012/2013	2011/2012	%	31 Jan	2011/2012	%
							2013
Order bookings	232.9	131.5	77.1	566.1	512.9	10.4	754.3	701.1	7.6
Net sales	205.2	196.1	4.6	568.9	584.6	-2.7	807.3	823.1	-1.9
excl. nonrecurring item1	205.2	196.1	4.6	568.9	554.6	2.6	807.3	793.1	1.8
Operating profit/loss (EBIT)	21.1	5.4	290.7	48.2	56.7	-15.0	95.0	103.5	-8.2
excl. nonrecurring item1	21.1	5.4	290.7	48.2	31.7	52.1	95.0	78.5	21.0
Operating margin, %	10.3	2.8		8.5	9.7		11.8	12.6
excl. nonrecurring item1	10.3	2.8		8.5	5.7		11.8	9.9
Profit/loss before tax (EBT)	20.3	12.2	66.4	45.4	77.6	-41.5	95.6	127.9	-25.3
excl. nonrecurring item1	20.3	12.2	66.4	45.4	52.6	-13.7	95.6	102.9	-7.1
Profit margin, %	9.9	6.2		8.0	13.3		11.8	15.5
excl. nonrecurring item1	9.9	6.2		8.0	9.5		11.8	13.0
Profit/loss after tax	17.8	9.0	97.8	34.9	56.0	-37.7	71.7	92.8	-22.7
Earnings per share, SEK 2	0.48	0.24	100.0	0.94	1.52	-38.2	1.94	2.52	-23.0
Cash flow 3	59.7	39.7	50.4	127.6	120.2	6.2	155.9	148.6	4.9
Profit including discontinued operations
Earnings from discontinued
operations	0	0		0	293.0		0	293.0
Earnings incl. discontinued
operations	17.8	9.0		34.9	349.0		71.7	385.8
Earnings per share incl.	0.48	0.24		0.94	9.47		1.94	10.47
discontinued operations, SEK 1

1 Attributable to the divestment of the MicroDose business in 2011/2012. The nonrecurring item generated a positive effect of SEK 30 million on sales and of SEK 25 million on operating profit for the periods concerned. ² Before dilution ³ Operations after changes in working capital.

THIRD QUARTER

• Order bookings rose 77% to SEK 232.9 million. The operations in Sweden and the Netherlands accounted for the greatest increase.
• All operating segments increased their sales. The Group's net sales increased 4.6% to SEK 205.2 million.
• Operating profit rose 290% to SEK 21.1 million, corresponding to an operating margin of 10.3%.

NINE-MONTH PERIOD

• Successful sales in Sweden, the Netherlands and North America contributed to order bookings increasing 10.4% to SEK 566.1 million.
• Profit before tax was SEK 45.4 million (52.6), the corresponding period excluding the nonrecurring item. Net financial items had an adverse impact on profit due a change in exchange rates and the trend in the interest-rate market.
• Continued strong cash balance and balance sheet. Operating cash flow was SEK 127.6 million.

EVENTS DURING THE THIRD QUARTER

• Due to the current market trend, the Board assesses that the ability to achieve the growth and profitability targets of 15%, respectively, will be postponed.
• Sectra secured orders from several new US customers for region-wide IT solutions for the management of medical images and planning of orthopaedic operations.
• A new research study from Karolinska Institutet shows that Sectra's method of identifying osteoporosis, Sectra OneScreen, is comparable with significantly more expensive methods in terms of predicting hip fractures.
• Simo Pykälistö and Marie Ekström were appointed Executive Vice Presidents of Sectra AB.
• Sectra entered Southeast Asia with a new business partner, CT Frank Technology, for the distribution of Sectra's visualization table for medical training.

EVENTS AFTER THE END OF THE REPORTING PERIOD

Sectra signed a seven-year agreement with the UK-based care consortium Salisbury, Wight and South Hampshire Domain NHS Trust. The agreement encompasses six public care providers that have opted to deploy Sectra's IT system for the management and storage of medical images, PACS.

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.

Order bookings, SEK million

Sales by geographic market MSEK

THE GROUP'S ORDER BOOKINGS, SALES AND EARNINGS

Order bookings and sales

Third quarter

The Group's order bookings for the quarter increased 77.1% to SEK 232.9 million (131.5) compared with the year-earlier period. Medical Systems' operations in Sweden and the Netherlands accounted for the greatest increase.

Net sales rose 4.6% to SEK 205.2 million (196.1). All operating segments increased their sales. The increase was primarily related to sales in Sweden.

Nine-month period, results excl. nonrecurring item in preceding year

Order bookings for the nine-month period rose 10.4% to SEK 566.1 million (512.9). Net sales increased 2.6% to SEK 568.9 million (554.6). Sweden accounted for the greatest increase, with sales growth of 18% during the nine-month period. Growth in several of Sectra's markets was dampened by the uncertain economic situation, primarily in Europe.

As of June 6, 2012, the results include the acquired Burnbank Systems Limited in the UK. The operation is included in the Medical Systems business segment. For further information and a preliminary acquisition analysis, refer to page 17.

Sales by business segment

(SEK million)	3 months	3 months	9 months	9 months	12 months	Full-year
	Nov 2012	Nov 2011 -	May 2012	May 2011-	Feb 2012 -	May - Apr
	- Jan 2013	Jan 2012	- Jan 2013	Jan 2012	Jan 2013	2011/2012
Medical Systems	178.5	175.3	498.3	520.2	710.1	732.0
excl. nonrecurring item 2	178.5	175.3	498.3	490.2	710.1	702.0
Secure Communication	27.6	24.7	77.3	69.7	109.4	101.8
Other operations 1	16.8	13.9	47.1	37.6	60.4	50.9
Group eliminations	-17.7	-17.8	-53.8	-42.9	-72.6	-61.6
Total remaining	205.2	196.1	568.9	584.6	807.3	823.1
operations
excl. nonrecurring item 2	205.2	196.1	568.9	554.6	807.3	793.1
Discontinued
operations 3	0	0	0	23.5	0	23.5
Total	205.2	196.1	568.9	608.1	807.3	846.6

Sales by geographic market

(SEK million)	3 months	3 months	9 months	9 months	12 months	Full-year
	Nov 2012	Nov 2011 -	May 2012	May 2011-	Feb 2012 -	May - Apr
	- Jan 2013	Jan 2012	- Jan 2013	Jan 2012	Jan 2013	2011/2012
Sweden	69.1	61.6	196.2	167.0	279.7	250.5
excl. nonrecurring item 2	69.1	61.6	196.2	165.6	279.7	249.1
USA	41.0	42.2	118.4	123.0	163.5	168.1
UK	22.8	27.8	66.4	85.1	85.4	104.1
excl. nonrecurring item 2	22.8	27.8	66.4	64.6	85.4	83.6
Rest of Europe	56.2	48.4	140.6	165.1	206.6	231.1
excl. nonrecurring item 2	56.2	48.4	140.6	157.0	206.6	223.0
Rest of world	16.1	16.1	47.3	44.4	72.1	69.3
Total remaining	205.2	196.1	568.9	584.6	807.3	823.1
operations 2
excl. nonrecurring item 2	205.2	196.1	568.9	554.6	807.3	793.1

1 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. 2 The nonrecurring item is attributable to the discontinuation of the Sectra MicroDose business in 2011 and had a positive effect on sales of SEK 30 million and on operating profit of SEK 25 million for the relevant periods. 3 See Note 1 on page 17.

Bars – per quarter Line – rolling 12-months

Earnings

Third quarter

The Group's operating profit increased 290.7% to SEK 21.1 million (5.4) compared with the corresponding quarter in 2011/2012. The result corresponds to an operating margin of 10.3% (2.8). The improvement in earnings is largely related to major license and service sales, a lower proportion of hardware and efficiency enhancements in the supply organization.

Net financial items amounted to a negative SEK 0.8 million (pos: 6.9) and were adversely impacted by exchange-rate changes and the trend in the interest-rate market. Exchange-rate changes had a negative impact of SEK 2.6 million (pos: 2.8) on consolidated financial items. Profit after net financial items increased 66.4% to SEK 20.3 million (12.2), corresponding to a profit margin of 9.9% (6.2).

Nine-month period, results excl. nonrecurring item

The operating profit increased 52.1% to SEK 48.2 million (31.7) compared with the corresponding quarter in 2011/2012. The result corresponds to an operating margin of 8.5% (5.7). The higher share of license sales contributed to the increase in the operating margin.

Net financial items were a negative SEK 2.9 million (pos: 20.9) and were negatively impacted by changes in exchange rates and developments in the interest-rate market. The comparative period included interest-rate effects from discontinued operations in an amount of SEK 6.4 million. Exchange-rate changes had a negative impact on consolidated financial items of SEK 5.8 million (pos: 6.2). Profit after net financial items was SEK 45.4 million (52.6), corresponding to a profit margin of 8.0% (9.5).

Earnings including discontinued operations

On August 31, 2011, Sectra finalized the transaction with Royal Philips Electronics, which thus took over the operations involving development and sales of the digital mammography system, MicroDose Mammography. The sale generated a capital gain based on carrying amounts of SEK 322.6 million after tax in the preceding fiscal year. Refer to Note 1 on page 17 for further information regarding discontinued operations.

Consolidated profit after tax amounted to SEK 17.8 million (9.0) for the quarter, corresponding to earnings per share before dilution of SEK 0.48 (0.24). The change in tax rate had a positive impact of SEK 3.4 million on deferred tax during the period. For the nine-month period, profit after tax and including discontinued operations amounted to SEK 34.9 million (349.0), corresponding to earnings per share of SEK 0.94 (9.47).

Operating profit by business segment

(SEK million)	3 months	3 months	9 months	9 months	12 months	Full-year
	Nov 2012	Nov 2011 -	May 2012-	May 2011-	Feb 2012 -	May - Apr
	- Jan 2013	Jan 2012	Jan 2013	Jan 2012	Jan 2013	2011/2012
Medical Systems	24.4	3.9	48.3	51.7	94.1	97.5
excl. nonrecurring item 2	24.4	3.9	48.3	26.7	94.1	72.5
Secure Communication	2.8	3.7	8.4	8.6	15.1	15.3
Other operations 1	-5.7	-3.0	-10.0	-6.8	-12.2	-9.0
Group eliminations	-0.4	0.8	1.5	3.2	-2.0	-0.3
Total remaining	21.1	5.4	48.2	56.7	95.0	103.5
operations
excl. nonrecurring item 2	21.1	5.4	48.2	31.7	95.0	78.5
Discontinued operations 3	0	0	0	-23.8	0	-23.8
Total	21.1	5.4	48.2	32.9	95.0	79.7

1 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.

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 for the relevant periods. 3 See Note 1 on page 17.

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.

In the preceeding fiscal year, Sectra reported a very strong fourth quarter and the executive management deems that the final quarter of the current year will be of a more normal nature.

MEDICAL SYSTEMS

Sales and earnings

Third quarter

Medical Systems' sales increased 1.8% to SEK 178.5 million (175.3) compared with the corresponding quarter in 2011/2012. The operating profit totaled SEK 24.4 million (3.9), which corresponded to an operating margin of 13.7% (2.2).

Nine-month period, results excl. nonrecurring item in preceding year

Medical Systems' sales for the period increased 1.7% to SEK 498.3 million (490.2). Operating profit increased 80.9% to SEK 48.3 million (26.7), corresponding to an operating margin of 9.7% (5.4). The earnings improvement is largely due to a higher share of license and services sales and to the efficiency improvements in the supply organization.

Market

Sectra provides users of medical images in the healthcare sector with IT systems and services to use resources more efficiently and to coordinate geographically dispersed operations. More than 1,400 customers use Sectra's IT systems and services, including some of the world's largest care providers. The bulk of the business area's revenues derive from commitments to existing customers, both in the form of ancillary sales and long-term agreements for products and services.

The market for medical IT systems and services continues to expand as a result of the considerable need for systems that enhance efficiency for healthcare providers. Scandinavia, North America and the UK 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 efficient and secure communications and management of medical images (PACS) and patient information (RIS).

Increased order bookings

The Radiology IT business unit accounts for more than 90% of Medical Systems' sales. In the markets for radiology IT systems, Sectra's strategy is to grow primarily where the company already holds an established position, such as in Northern Europe and North America, and through partners in selected growth markets. During the third quarter, the business unit's operations, primarily in Sweden and the Netherlands, contributed to Medical Systems' order bookings increasing compared with the year-earlier period. Sectra also signed an agreement with several new customers in the US concerning region-wide IT solutions for the communication and management of medical images and the planning of orthopaedic operations. In many European markets, the uncertain economic trend and the need for government austerity measures continue to have a dampened effect on growth, and in some cases sharply so.

Entry into Southeast Asia

During the third quarter, Sectra initiated a partnership with CT Frank Technology in Malaysia. The company will distribute the Sectra Visualization Table in Southeast Asia. The partnership is the first step in Sectra's work to identify distribution channels in Asia for the visualization table. The University Malaya Medical Center in Kuala Lumpur will be the first in the region to install Sectra's visualization table, which the hospital will deploy for medical training and research.

Medical Systems accounts for 86% of consolidated sales on an annual basis

Painful and costly osteoporosis fractures can be avoided with diagnoses and treatment.

Sectra's method for identifying osteoporosis comparable with more expensive methods A research team at Karolinska Institutet in Stockholm conducted a study that shows that Sectra's online service, Sectra OneScreen, comprises an effective and inexpensive way to identify individuals in risk groups for osteoporosis at an early stage. According to the study, Sectra OneScreen is entirely comparable with other more expensive methods that are currently used to predict hip fractures due to osteoporosis.

Osteoporosis affects one in three women, and one in five men, over the age of 50.By diagnosing and treating the disease, many painful and costly fractures could be avoided. Sectra's online service can advantageously be combined with mammography by taking a medical image of the womens hand at the same time as the breast images and using the same mammography modality. In this case, the extra examination time is less than 30 seconds. The study, which was published in European Radiology, shows researchers that this method is completely comparable with DXA, the established standard for predicting fractures related to osteoporosis.

Sectra OneScreen is used in France, Italy, Norway, Switzerland, Spain, the UK and Germany. In Sweden, Sectra OneScreen is used in research projects in Helsingborg and Stockholm. During the third quarter, one of the customers that chose to use Sectra's service in combination with mammography is Radiologie Hofheim, which is included in Germany's national mammography screening program.

SECURE COMMUNICATION SYSTEMS

Sales and earnings

Third quarter

Sales for the quarter increased 11.7% to SEK 27.6 million (24.7) compared with the corresponding quarter in 2011/2012. The operating profit totaled SEK 2.8 million (3.7), which corresponded to an operating margin of 10.1% (15.0). Earnings were impacted by increased costs in major ongoing product-development projects resulting from new requirements related to changes in the Swedish regulatory framework for the management of classified information.

Nine-month period

Sales for the period increased 10.9% to SEK 77.3 million (69.7) compared with the corresponding quarter in 2011/2012. The operating profit totaled SEK 8.4 million (8.6), which corresponded to an operating margin of 10.9% (12.3). Earnings were impacted by increased costs in major ongoing product-development projects.

Market

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

The market is driven by it being easier than ever to eavesdrop on phone calls, changes in regulations governing the handling of classified information and the fact that increasing numbers of authorities are choosing to protect their confidential, though unclassified, information. As a result of growing collaboration between authorities in European countries, customers are increasingly calling for products that support cross-border collaboration. Sectra offers products that are approved by the EU, NATO and several national security agencies.

Operational review

Sweden and the Netherlands comprise Sectra's largest markets for secure communications products. The Swedish market for crypto products is currently being adversely affected by long processing times with the business area's principal customer. The operation is currently being reviewed in a bid to pave the way for new business opportunities and to manage the consequences stemming from the delay of planned projects and revenues.

Secure communication accounts for 14% of consolidated sales on an annual basis

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

Third quarter

Sales from Other operations increased 20.9% to SEK 16.8 million (13.9) compared with the corresponding quarter in 2011/2012. The increase was attributable to Sectra's operations for the financing of customer projects. An operating loss of SEK 5.7 million (loss: 3.0) was reported and impacted by a provision for costs related to structural changes.

Nine-month period

Sales from Other operations increased 25.3% to SEK 47.1 million (37.6) compared with the corresponding period in 2011/2012. The increase was attributable to Sectra's operations for the financing of customer projects. An operating loss of SEK -10.0 million (loss: 6.8) was reported and impacted by a provision for costs related to structural changes.

Increased demand for financing solutions

In recent years, Sectra's business model for the sales of radiology IT systems has gradually shifted from system sales to an increasing share of service sales in the form of managed service agreements. When customers choose managed service agreements, they purchase IT systems as a service during a predetermined contractual period. Such agreements typically range from five to ten years and encompass licenses, hardware, support and upgrades. While these agreements contribute to order bookings just as much as system sales, they generate a more extended recognition of sales and income compared with the previous model of system sales, under which final invoicing was conducted in conjunction with the completion of the installation and approval by the customer. In transitioning between the two models, there will be an initial decline in earnings, which is directly due to the transaction being protracted over a longer period.

Several of the major orders that Sectra has secured in recent months are service agreements requiring significant initial project investments, which will be financed by the Group's internal financing company. At the business area level, sales and income from these types of transactions will be recognized as the installation projects are completed. Sectra's financing company will subsequently remain the system owner, and at the Group level, sales and income will be recognized throughout the entire contractual period in an equal profit amount each year.

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 127.6 million (120.2) for the nine-month period. The comparative figure includes a nonrecurring item of SEK 25 million. Cash flow from investment operations amounted to a negative SEK 58.1 million (neg: 27.0) for the period, of which a negative SEK 46.8 million related to the acquisition of the Burnbank Systems Limited in the first quarter. Cash flow from financing operations amounted to a negative SEK 182.7 million (neg: 173.2) for the period.

The Group's total cash flow for the period, including acquired and discontinued operations, amounted to a negative SEK 113.2 million (pos: 369.1). Comparative figures in the preceding year include SEK 466.7 million relating to cash flow from the divestment of the MicroDose business. The total cash flow for the year includes the repayment to Sectra's shareholders via a redemption process in the amount of SEK 185.5 million, the acquisition of Burnbank Systems Limited of SEK 46.8 million, and net changes in convertible debenture of SEK 2.8 million. After adjustment for exchange-rate differences in cash and cash equivalents, the Group's cash and cash equivalents amounted to SEK 492.0 million (580.5).

The equity/assets ratio was 63.8% (68.2) at the close of the period and liquidity amounted to a multiple of 2.9 (3.2). The change is primarily attributable to the repayment of SEK 185.5 million to Sectra's shareholders through a redemption process. At the close of the period, the Group's interest-bearing liabilities amounted to SEK 26.5 million (34.6) and pertained to convertible debentures.

Investments

Group investments during the period amounted to SEK 58.1 million (27.0), of which SEK 46.8 million related to the acquisition of Burnbank in the first quarter. Otherwise, investments pertained principally to customer projects in the Group's financing activities and capitalized development costs.

Investments in Group-financed customer projects during the period amounted to SEK 2.7 million (17.1), of which SEK 0.7 million (12.0) was attributable to the third quarter. At the close of the period, the Group's carrying amount for Group-financed customer projects totaled SEK 29.1 million (49.5).

During the period, development costs amounted to SEK 8.1 million (9.0), of which SEK 3.5 million (2.6) was attributable to the third quarter. At the close of the period, capitalized development costs totaled SEK 52.3 million (58.0).

Depreciation/amortization during the period amounted to SEK 34.9 million (31.7), of which SEK 12.6 million (10.9) was attributable to the third quarter. During the period, SEK 11.6 million (11.8) pertains to the depreciation/amortization of capitalized development projects, and the corresponding figure for the third quarter was SEK 3.3 million (3.9).

Employees

The number of full-time employees in Sectra's remaining operations increased by 41 during the period, of whom six were attributable to the third quarter. Most of the increase in the current fiscal year relates to the acquisition of Burnbank Systems Limited. At the close of the period, the number of full-time employees totaled 543 (499).

PARENT COMPANY SECTRA AB

New President and Executive Vice President

In September 2012, the Board of Directors appointed Torbjörn Kronander, President of Sectra's Medical Systems business area and Executive Vice President of Sectra AB, as the new President and CEO of Sectra. He assumed his duties on November 1, 2012.

In December, the Board of Directors appointed both Simo Pykälistö, Chief Financial Officer of the Sectra Group, and Marie Ekström, Head of Sectra's largest product area – Radiology IT –as Executive Vice Presidents of the company.

Sales and earnings

The Parent Company includes the head office's functions for Group finances, as well as stock exchange, share and investor-relations activities. The Parent Company's income statement and balance sheet are reported on page 16.

Third quarter

Net sales in the Parent Company amounted to SEK 5.0 million (4.7) for the quarter and an operating loss of SEK 6.9 million (loss: 3.2) was reported. The operating result was impacted by a provision for costs related to structural changes. The loss after net financial items was SEK 7.4 million (profit: 2.6), which was negatively impacted by the exchange and interest-rate trend. Exchange-rate changes had a negative impact on financial items of SEK 2.3 million (pos: 0.8).

Nine-month period

The Parent Company's net sales amounted to SEK 15.0 million (14.1) for the period and an operating loss of SEK 13.1 million (loss: 7.7) was reported. The operating result was impacted by costs related to structural changes. Net financial items amounted to SEK 4.1 million (18.9), and a loss after net financial items of SEK 9.0 million (profit: 11.2) was posted for the period. The comparative period included interest-rate effects from discontinued operations in an amount of SEK 6.4 million. Exchange-rate changes had a negative impact on the Parent Company's financial items of SEK 4.1 million (pos: 2.4).

THE SHARE

Sectra's 2012 redemption program and the Swedish Tax Agency's general recommendations

On June 28, 2012, the Annual General Meeting (AGM) resolved to transfer SEK 5 per share, a total of SEK 185.5 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 July and August 2012. For additional information, refer to the brochure regarding the redemption program on Sectra's website.

The redemption of redemption shares (designated SECT IL B) is declared as sales of shares on Form K4 for the 2013 tax assessment. In September 2012, the Swedish Tax Agency submitted general recommendations on how the acquisition fees should be distributed between remaining shares and redemption shares. According to the Swedish Tax Agency's general recommendations, SKV A 2012:22, 90% of the acquisition fee for an original class A or B share in Sectra AB should be assigned to a remaining share and and 10% to the redemption share.

Share capital

Sectra's share capital increased during the quarter by SEK 252,890 subsequent to the conversion of debentures from the 2009/2012 convertible program, see below, and at the close of the period, amounted to SEK 37,094,978.

At future full conversion and exercise of the implemented incentive programs, the number of shares will increase by a maximum of 814,417, corresponding to 2.2% of the share capital and 1.3% of the voting rights. After dilution, the share capital will amount to SEK 37,909,395.

Incentive program

Convertible program and employee stock options 2009/2012

During the first quarter, employees and Board members exercised convertibles corresponding to 252,890 shares at a nominal amount of SEK 10.8 million. The conversion price was SEK 42.90. Convertibles outstanding in the 2009/2012 program amounted to a nominal value of SEK 6.5 million following the conversion this amount was repaid to the holders on the maturity date June 15.

No conversion took place in the share option program for employees in North America with a redemption period from August 19 to 25, 2012. 2009/2012 employee stock options expired in October 2012

New convertible programs

In June, the 2012 AGM resolved to issue new convertibles to the Group's employees and external Board members. The convertibles were subscribed during the September 26 – October 5, 2012 period. The conversion price for employees amounts to SEK 63.30. The duration is November 1, 2012 – June 15, 2016 and conversion is permitted from May 23 – 27, 2016. The conversion price for external Board members is SEK 67.50. The duration is November 1, 2012 – June 15, 2017 and conversion is permitted from May 22 – 26, 2017. At full exercise, the dilution effect of both convertible programs may not exceed 1% of the share capital. Subscription took place for a total of 143,600 convertibles for a total nominal value of SEK 9.2 million.

The Swedish Tax Agency has published a recommendation for the declaration of Sectra's redemption shares.

New employee stock options

Pursuant to the AGM resolution, Sectra issued an additional 100,000 employee stock options for the Group's employees in North America during the third quarter. 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 2012 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, 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 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 interim report, the Board had not utilized these possibilities.

2013 Annual General Meeting

Annual General Meeting: June 27 in Linköping

The 2013 AGM will be held on June 27 in Linköping, Sweden. Shareholders who wish to have matters addressed in the notification of the Meeting must submit their proposals in writing to the Sectra Board of Directors, by e-mail, at info.investor@sectra.se or by mail to: Sectra AB, Teknikringen 20, SE-583 30 Linköping, Sweden. Such proposals must be labeled "Matter for the Annual General Meeting" and should arrive not later than May 1, 2013 to be sure that they are addressed in the notification of the Meeting.

Nomination Committee

The 2012 AGM resolved to appoint a Nomination Committee comprising four members, of whom the Chairman of the Board and three members are to represent the major shareholders in the company. The composition of the Nomination Committee is based on known shareholdings in the company as of September 30, 2012. In accordance with the resolution of the AGM, a Nomination Committee was appointed following consultations with the company's major shareholders. The following members have been appointed to the Nomination Committee:

• Carl-Erik Ridderstråle, Chairman of the Board (convenor)
• Torbjörn Kronander
• Jan-Olof Brüer, (Chairman)
• Thomas Ehlin, representing Nordea Funds

Jan-Olof Brüer, who is the company's second-largest owner in terms of votes, has been appointed Chairman of the Nomination Committee since Torbjörn Kronander, the company's largest owner in terms of votes, has decided to abstain from the chairmanship due to his role as CEO of Sectra AB.

The Nomination Committee will prepare and submit proposals to the 2013 AGM regarding the:

• 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
• Resolution on principles governing the composition of the Nomination Committee
• Chairman of the General Meeting

The Nomination Committee's proposal will be presented in the notice of the AGM and be available on the company's website.

Shareholders who wish to submit proposals may do so in writing to Torbjörn Kronander via email info.investor@sectra.com or by mail to: Sectra AB, Teknikringen 20, SE-583 30 Linköping, Sweden.

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, 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, is provided in the Group's Annual Report for the 2011/2012 fiscal year, Note 30, page 44. 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% measured over 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.

The weak growth in the global economy, and Europe in particular, means 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 and profitability targets of 15%, respectively, has shifted forward in time compared with the predictions that were made when the goals were established two years ago.

New organizational structure and division of segments as of May 1, 2013

The executive management has decided to conduct a reorganization. The new organizational structure will be introduced on May 1, 2013 and will have an impact on Sectra's segment recognition. As of the 2013/2014 fiscal year, Sectra will report the following primary segments:Imaging IT, Secure Communication, Business Innovation and Other operations.

Operating margin rolling 12 months 11.8%

Average growth over a seven-year period 6.6%

Equity/assets ratio 63.8%

At the end of the period including nonrecurring item

Organization as of May 1, 2013

FOR FURTHER INFORMATION

Contact Sectra's CEO Torbjörn Kronander, telephone +46 13 - 23 52 27

Capital Markets Day and presentation of the interim report

Sectra's CEO Torbjörn Kronander will present the interim report for analysts, investors and the media on March 6 at 11:30 a.m. at Sectra's Capital Market Day in Linköping, Sweden.

Financial calendar

Year-end report May 28, 2013 2013 Annual General Meeting June 27, 2013

Consolidated income statements

	3 months	3 months	9 months	9 months	12 months	Full-year
SEK thousands	Nov 2012	Nov 2011	May 2012	May 2011	Feb 2012	May - Apr
	- Jan 2013	- Jan 2012	- Jan 2013	- Jan 20121)	- Jan 2013	2011/20121)
Net sales	205,207	196,115	568,856	584,620	807,326	823,090
Capitalized work for own use	3,456	2,611	8,076	9,016	9,646	10,586
Goods for resale	-25,688	-43,730	-71,583	-114,269	-115,695	-158,381
Personnel costs	-106,911	-100,900	-308,777	-288,785	-405,459	-385,467
Other external costs	-42,402	-37,871	-113,434	-102,233	-154,175	-142,974
Depreciation/amortization	-12,556	-10,859	-34,890	-31,671	-46,608	-43,389
Operating profit	21,106	5,366	48,248	56,678	95,035	103,465
Net financial items	-838	6,868	-2,883	20,898	609	24,390
Profit after net financial items	20,268	12,234	45,365	77,576	95,644	127,855
Taxes Earnings for the period from	-2,468 17,800	-3,260 8,974	-10,491 34,874	-21,565 56,011	-23,933 71,711	-35,007 92,848
remaining operations
Profit/loss from	0	0	0	292,967	0	292,967
discontinued operations Note 1
Earnings/loss for the period	17,800	8,974	34,874	348,978	71,711	385,815
Earnings/loss for the period
attributable to:
Parent Company owners	17,800	8,974	34,874	348,978	71,711	385,815
Non-controlling interest	0	0	0	0	0	0
Earnings per share remaining
operations
Before dilution, SEK	0.48	0.24	0.94	1.52	1.94	2.52
After dilution, SEK	0.47	0.24	0.92	1.49	1.90	2.46
Earnings/loss per share including
operations held for sale
Before dilution, SEK	0.48	0.24	0.94	9.47	1.94	10.47
After dilution, SEK	0.47	0.24	0.92	9.27	1.90	10.23
No. of shares
Before dilution	37,094,978	36,842,088	37,094,978	36,842,088	37,094,978	36,842,088
After dilution 2)	37,909,395	37,848,888	37,909,395	37,848,888	37,909,395	37,916,513
Average, before dilution	37,094,978	36,842,088	37,038,780	36,842,088	36,989,607	36,842,088
Average, after dilution 2)	37,842,728	37,782,221	37,796,443	37,645,888	37,820,825	37,707,909

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 2010/2011 (145,727), 2011/2012 (225,090) and 2012/2013 (143,600) and on employee stock options issued in 2010/2011 (100,000), 2011/2012 (100,000) and 2012/2013 (100,000).

Consolidated Statement of Comprehensive Income

	3 months	3 months	9 months	9 months	12 months	Full-year
SEK thousands	Nov 2012	Nov 2011	May 2012	May 2011	Feb 2012	May - Apr
	- Jan 2013	- Jan 2012	- Jan 2013	- Jan 2012	- Jan 2013	2011/2012
Earnings for the period	17,800	8,974	34,874	348,978	71,711	385,815
Other comprehensive income
Change in translation differences from translating foreign subsidiaries	-11,067	5,244	-13,212	13,654	-12,458	14,408
Total other comprehensive income for the period	-11,067	5,244	-13,212	13,654	-12,458	14,408
Total comprehensive income for the period	6,733	14,218	21,662	362,632	59,253	400,223

Consolidated Balance Sheets

SEK thousands	Jan 31,	Jan 31,	Apr 30,
	2013	2012	2012
Assets
Intangible assets	123,044	68,495	65,784
Tangible assets	41,133	57,832	53,647
Financial assets	3,628	4,597	3,639
Deferred tax assets	5,753	8,121	9,164
Total fixed assets	173,558	139,045	132,234
Other current assets	330,707	378,437	396,083
Cash and cash equivalents	492,005	580,546	605,757
Total current assets	822,712	958,983	1,001,840
Total assets	996,270	1,098,028	1,134,074
Equity and liabilities
Equity (including total comprehensive income for the period)	635,491	749,245	787,392
Provisions	22,446	591	594
Deferred tax liabilities	27,019	23,499	27,872
Long-term liabilities	26,503	17,260	17,260
Current liabilities	284,811	307,433	300,956
Total equity and liabilities	996,270	1,098,028	1,134,074

No changes have occurred in pledged assets and contingent liabilities since the 2011/2012 Annual Report.

Consolidated Statement of Changes in Equity

	9 months	9 months	Full-year
SEK thousands	May 2012	May 2011	May - Apr
	- Jan 2013	- Jan 2012	2011/2012
Equity at start of period	787,392	569,537	569,537
Comprehensive income for the period	21,662	362,632	400,223
Share-related payments	1,063	1,286	1,842
Redemption of shares	-185,475	-184,210	-184,210
Conversion to shares	10,849	0	0
Equity at the end of the period	635,491	749,245	787,392

Consolidated Cash-flow Statements

	9 months	9 months	Full-year
SEK thousands	May 2012	May 2011	May - Apr
	- Jan 2013 - Jan 2012 88,894 102,705 127,596 120,234 -58,088 -26,961 -182,697 -173,219 -113,189 -79,946 0 -17,620 0 466,715 0 0 Note 1 0 449,095	2011/2012
Cash flow from operations before changes in working capital			153,545
Cash flow from operations after changes in working capital			148,580
Investing activities			-31,103
Financing activities			-173,042
Cash flow for the period			-55,565
Cash flow from discontinued operations:
Current operations			-17,620
Investing activities			466,715
Financing activities			0
Cash flow for the period from discontinued operations			449,095
Total cash flow for the period	-113,189	369,149	393,530
Change in cash and cash equivalents
Cash and cash equivalents, opening balance	605,757	211,341	211,341
Exchange-rate difference in cash and cash equivalents	-563	56	886
Cash and cash equivalents, closing balance	492,005	580,546	605,757
Unutilized credit facilities	15,000	15,000	15,000

Key figures

	9 months	9 months	12 months	Full-year
	Jan 31,	Jan 31,	Jan 31,	Apr 30,
	2013	2012	2013	2012
Order bookings, SEK M	566.1	512.9	754.3	701.1
Operating margin, %	8.5	9.7	11.8	12.6
Operating margin excluding nonrecurring items, %	n/a	5.7	n/a	9.9
Profit margin, %	8.0	13.3	11.8	15.5
Profit margin excluding nonrecurring items, %	n/a	9.5	n/a	13.0
Average number of employees	526	496	520	500
Cash flow per share, SEK	2.40	2.79	3.78	4.17
Cash flow per share after full dilution, SEK	2.34	2.71	3.68	4.05
Value added, SEK M	357.0	345.5	500.5	488.9
P/E ratio, multiple	n/a	n/a	24.9	17.1
Share price at end of period, SEK	48.2	48.5	48.2	43.0
Including discontinued operations:
Return on equity, %	4.9	52.9	10.4	58.0
Return on capital employed, %	6.2	54.0	13.4	59.7
Return on total capital, %	4.3	36.6	9.3	40.8
Equity/assets ratio, %	63.8	68.2	63.8	69.4
Liquidity, multiple	2.9	3.2	2.9	3.4
Cash flow per share, SEK	2.40	2.09	3.78	3.34
Cash flow per share after full dilution, SEK	2.34	2.03	3.68	3.24
Equity per share, SEK	17.13	20.34	17.13	21.37
Equity per share after full dilution, SEK	16.76	19.80	16.76	20.77

Quarterly consolidated income statement and key figures

		2012/2013				2011/2012				2010/2011
SEK M	Q3	Q2	Q1	Q4	Q3	Q2 1)	Q1	Q4	Q3	Q2	Q1
Net sales	205.2	192.7	171.0	238.5	196.1	219.2	169.3	197.3	200.7	212.9	172.8
Capitalized work for own use	3.5	4.4	0.3	1.6	2.6	5.7	0.7	0.4	2.2	2.4	3.5
Operating expenses	-175.0	-163.1	-155.9	-181.6	-182.4	-169.4	-153.4	-163.5	-176.0	-179.6	-159.3
Depreciation/amortization	-12.6	-11.0	-11.3	-11.7	-10.9	-10.6	-10.2	-12.0	-11.2	-10.0	-8.0
Operating profit	21.1	23.0	4.1	46.8	5.4	44.9	6.5	22.1	15.7	25.7	9.0
Net financial items	-0.8	1.8	-3.8	3.5	6.9	4.2	9.8	-1.1	-1.0	-4.1	3.9
Earnings after net financial items	20.3	24.8	0.3	50.3	12.3	49.1	16.2	21.0	14.7	21.6	12.9
Tax on earnings for the period	-2.5	-7.9	-0.1	-13.4	-3.3	-14.0	-4.3	-8.4	-4,9	-5.7	-2.9
Earnings for the period from remaining	17.8	16.9	0.2	36.8	9.0	35.1	11.9	12.6	9.8	15.9	10.0
operations
Profit/loss from discontinued operations	0	0	0	0	0	310.0	-17.0	-14.5	-19.5	-15.7	-8.2
Earnings for the period							-5.1	-1.9	-9.7	0.2	1.8
	17.8	16.9	0.2	36.8	9.0	345.1
Order bookings, SEK M	232.9	217.0	116.2	188.2	131.5	190.6	190.8	126.5	213.6	123.1	167.7
Operating margin, %	10.3	11.9	2.4	19.6	2.8	20.5	3.8	11.2	7.8	12.1	5.2
Cash flow per share, SEK	1.23	0.65	0.52	1.38	0.97	1.48	0.35	0.81	0.41	0.58	0.43
Cash flow per share after full dilution, SEK	1.19	0.64	0.51	1.34	0.94	1.44	0.34	0.80	0.41	0.57	0.42
Earnings per share, SEK	0.48	0.46	0.01	1.00	0.24	0.95	0.32	0.34	0.27	0.43	0.27
Including discontinued operations:
Return on equity, %	2.8	2.4	0.0	5.8	1.1	46.3	-0.9	-0.3	-1.6	0.0	0.3
Return on capital employed, %	3.2	3.4	0.1	6.3	1.5	47.8	-1.1	0.3	-2.0	0.1	0.3
Equity/assets ratio, %	63.8	64.7	71.2	69.4	68.2	75.0	64.1	61.0	63.5	63.6	64.7
Cash flow per share, SEK	1.23	0.65	0.52	1.25	0.97	1.25	-0.13	0.12	0.13	0.16	0.28
Equity per share, SEK	17.13	16.94	21.54	21.37	20.34	24.94	15.55	15.46	15.78	16.16	16.40

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 operations,	92.8	48.3	84.0	143.9	125.7
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	5.00	5.00	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

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 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.

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 were 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 are unchanged compared with those applied in the 2011/2012 Annual Report with the exception that IFRS 3, Business Combinations has now been applied. New policies and amendments that have come into effect as of the 2012/2013 fiscal year have had no impact on the financial statements.

Parent Company Income Statements

	3 months	3 months	9 months	9 months	12 months	Full-year
SEK thousands	Nov 2012	Nov 2011	May 2012	May 2011	Feb 2012	May - Apr
	- Jan 2013	- Jan 2012	- Jan 2013	- Jan 2012	- Jan 2013	2011/2012
Net sales	4,969	4,670	14,976	14,067	20,697	18,281
Personnel costs	-3,341	-3,062	-9,038	-8,078	-12,935	-10,468
Operating expenses	-8,537	-4,804	-18,904	-13,559	-23,409	-18,064
Depreciation/amortization	-39	-52	-145	-159	-197	-211
Operating loss	-6,948	-3,248	-13,111	-7,729	-15,844	-10,462
Net financial items	-477	5,851	4,093	18,940	398,649	413,496
Profit after net financial items	-7,425	2,603	-9,018	11,211	382,805	403,034
Appropriations	0	0	0	0	-14,229	-14,229
Profit before tax	-7,425	2,603	-9,018	11,211	368,576	388,805
Tax on earnings for the period	1,953	144	2,372	-2,120	-18,320	-22,812
Earnings for the period	-5,472	2,747	-6,646	9,091	350,256	365,993
Parent Company Statement of Comprehensive Income
	3 months	3 months	9 months	9 months	12 months	Full-year
SEK thousands
	Nov 2012	Nov 2011	May 2012	May 2011	Feb 2012	May - Apr
	- Jan 2013	- Jan 2012	- Jan 2013	- Jan 2012	- Jan 2013	2011/2012
Earnings for the period	-5,472	2,747	-6,646	9,091	350,256	365,993
Other comprehensive income
Fund for fair value	-3,682	5,753	-4,947	13,675	-5,645	12,977
Total other comprehensive income	-3,682	5,753	-4,947	13,675	-5,645	12,977
for the period
Total comprehensive income for the	-9,154	8,500	-11,593	22,766	344,611	378,970

Parent Company Balance Sheets

period

SEK thousands	Jan 31, 2013	Jan 31, 2012	Apr 30, 2012
Assets
Tangible assets	260	399	347
Financial assets	103,476	152,875	152,822
Total fixed assets	103,736	153,274	153,169
Other current assets	106,218	79,888	191,056
Cash and cash equivalents	419,422	485,695	480,668
Total current assets	525,640	565,583	671,724
Total assets	629,376	718,857	824,893
Equity and liabilities
Equity (including earnings for the period)	466,965	296,981	653,184
Deferred tax liabilities	110,191	95,962	110,191
Long-term liabilities	27,880	18,715	17,260
Current liabilities	24,340	307,199	44,258
Total equity and liabilities	629,376	718,857	824,893

Pledged assets and contingent liabilities

SEK thousands	Jan 31,	Jan 31,	Apr 30,
	2013	2012	2012
Pledged, assets	11,000	11,000	11,000
Total pledged assets	11,000	11,000	11,000
Guarantees on behalf of group companies	235,265	318,172	283,653
Total contingent liabilities	235,265	318,172	283,653

Note 1 Discontinued operations

In June 2011, Sectra and Royal Philips Electronics signed an agreement entailing that Philips had acquired 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 transaction 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. 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 after five years if specific agreement conditions are fulfilled. For the 2011/2012 fiscal year, the transaction generated, excluding the contingent additional purchase consideration, an accounting capital gain for Sectra totaling SEK 322.6 million after tax.

Profit from discontinued operations

SEK thousands	3 months	3 months	9 months	9 months	12 months	Full-year
	Nov 2012	Nov 2011	May 2012	May 2011	Feb 2012	May - Apr
	- Jan 2013	- Jan 2012	- Jan 2013	- Jan 2012	- Jan 2013	2011/2012
Net sales	-	-	-	23,484	-	23,484
Capitalized work for own use	-	-	-	3,425	-	3,425
Goods for resale	-	-	-	-16,421	-	-16,421
Personnel costs	-	-	-	-19,883	-	-19,883
Other external expenses	-	-	-	-14,398	-	-14,398
Operating loss	-	-	-	-23,793	-	-23,793
Net financial items	-	-	-	-5,804	-	-5,804
Loss before tax	-	-	-	-29,597	-	-29,597
Taxes	-	-	-	0	-	0
Loss for the period	-	-	-	-29,597	-	-29,597
Capital gain on divestment	-	-	-	322,564	-	322,564
Taxes	-	-	-	0	-	0
Total profit/loss from	-	-	-	292,967	-	292,967

discontinued operations

Note 2 Acquisition of Burnbank

On June 6, 2012, the Sectra Group acquired 100% of the shares in Burnbank Systems Limited, which markets IT services to the healthcare sector in the UK. The acquisition comprises the three companies Burnbank Systems Limited, Burnbank Healthsystems Limited and Burnbank Dataconnect Limited. The company has a total of 25 employees and posted sales of GBP 2.4 million (about SEK 26 million) and an operating margin of 25% for the 2011 fiscal year.

The total consideration transferred totaled SEK 77.3 million, of which SEK 55.0 million comprises a cash purchase consideration and SEK 22.3 million comprises a contingent purchase consideration recognized as a provision at the Group level. Estimates of the fair value of the contingent purchase consideration are based on the likelihood of the stipulated targets for growth and earnings until May 31, 2015 being realized. The acquisition was financed in its entirety from existing funds.

Note 2, continued

Acquired net assets and goodwill

SEK million	Recognized amounts for
	identifiable net assets
Customer relations	16.8
Brand	3.3
Tangible assets	7.6
Current receivables	8.2
Cash and cash equivalents	8.2
Deferred tax	-4.4
Current liabilities	-13.3
Total acquired net assets	26.4
Fair value of consideration transferred	77.3
Goodwill	50.9
Net outflow of cash and cash equivalents arising from the acquisition1) 2)
Cash consideration transferred	55.0
Cash and cash equivalents in the acquisition at the date of acquisition	- 8.2

Total 46.8 1

The negative change in the Goodwill item of SEK 26.9 million since the preceding period pertains to the allocation of the purchase consideration in the amount of a negative SEK 15.7 million and the recalculation of the contingent additional purchase consideration in the negative amount of SEK 11.2 million. The contingent purchase consideration was recalculated due to new information on the fair value at the date of acquisition. The change in the Goodwill item in the balance sheet since April 30, 2012, totaled SEK 45.7 million, of which SEK 50.9 million pertains to the acquisition of Burnbank and a negative SEK 5.2 million in a changed exchange rate.

2 Excluding acquisition-related expenses of SEK 0.7 Million.

Goodwill that arose in conjunction with the acquisition is attributable to expected growth opportunities for sales in the UK market for Medical Systems and to the experience and competence of the employees.

The operations are included in the Sectra Group as of June 6, 2012, when Sectra obtained controlling influence over the acquired units. In the period, the acquired operations were included in the Sectra Group's reporting with sales of SEK 19.2 million and operating profit of SEK 4.7 million. Acquisition-related expenses amounted to SEK 0.7 million and were recognized under other external costs in the consolidated income statement.

The Board of Directors and the President of Sectra AB (publ) hereby assure that the interim report for the period May 2012 – January 2013 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, March 4, 2013 Sectra AB (publ)

Torbjörn Kronander Carl-Erik Ridderstråle Erika Söderberg Johnson Anders Persson and Board member

President and CEO Chairman Board member Board member

Christer Nilsson Jakob Svärdström Stein Norheim Per Elmhester

Board member Board member Employee representative Deputy Employee representative

Auditor's review

Introduction

We have reviewed the interim report of Sectra AB (publ), corporate identity number 556064-8304, as of January 31, 2013 and for the ninemonth period then ended. The Board of Directors and the President are responsible for the preparation and fair presentation of this interim financial information in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim annual report based on our review.

Scope and focus of review

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

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Annual Accounts Act for the Group and in accordance with the Annual Accounts Act for the Parent Company.

Linköping, March 4, 2013

Grant Thornton Sweden AB Peter Bodin Authorized Public Accountant

The information in this report is such that Sectra AB (publ) is obligated to disclose in compliance with the Securities and Clearing Operations Act and/or the Financial Instruments Trading Act. This information was released to the media for public disclosure on March 5, 2013, at 8:00 a.m. (CET).

Sectra AB (publ)

Teknikringen 20 SE 583 30 Linköping Tel: +46 (0)13 23 52 00 info@sectra.se www.sectra.se VAT reg. No. SE556064830401