Combitech's interim report January-June 2019

IT and technology consulting company Combitech releases its half-yearly report for January-June 2019. The report shows continued strong sales and stable earnings. New industrial partnerships, an increased focus on the role of digitization for a more sustainable society and the Nordic region's largest cyber security conference are some of the important events from the second quarter of the year.

Combitech reports increased sales and stable earnings

- We see continued interest from the industry, to take advantage of digitalization and innovative collaborations, many times with sustainability as a strong driving force. For example, during the second quarter, we entered into a new collaboration with Stena Recycling and ABB to increase the amount of recycled material, says Combitech's CEO Hans Torin.

Collaboration with large industrial companies on digitization and sustainability

- We see a trend where larger companies collaborate in new ways to find new solutions that pave the way for a more circular society. Digital ecosystems and innovative collaboration are central parts in this. It is in line with our strategy to support our customers all the way from facilitating collaborations and designing common goals to building digital ecosystems that are integrated with each other, while protecting safety-critical systems and information,” says Hans Torin, CEO.

Combitech is also part of Sustainable Underground Mining, SUM, a partnership where LKAB, ABB, Epiroc, AB Volvo and Combitech joined forces for the future's digital, autonomous and carbon-free mine.

KEY HIGHLIGHTS, APRIL-JUNE 2019

  • In April, Combitech entered into a collaboration with Stena Recycling and ABB to increase the amount of recycled material in the manufacturing industry. In a first project, AI, machine vision and robotization were used to streamline the recycling of vacuum cleaners.
  • During the second quarter of 2019, Combitech has signed a number of new agreements withinin the public sector, primarily within IT services and information security.
  • During the period Combitech’s commitments in the civil and military defense, has increased. Combitech supports a large number of authorities in the reconstruction of the Swedish total defense.
  • April 25, Combitech received SJ's Environmental Diploma for Environmental Smart Travel with the justification “Combitech has made the decision to become Sweden's most sustainable IT consulting company and in a short time they have succeeded in changing their travel.” The award is an acknowledgment that Combitech is on the right way in their sustainability work.
  • On May 21-22, the Nordic region's largest security conference, Paranoia, was held for the twelfth time, with world-leading security experts and over 700 participants. Norwegian Prime Minister Erna Solberg opened the conference. Combitech's Norwegian company Watchcom arranged the event.
  • In June, Combitech participated in the new arena Circular Initiative, an annual event that is arranged by Stena Recycling. The event was held at the end of June in Stockholm and attracted more than 200 people from Swedish business.

KEY FIGURES, JANUARY-JUNE 2019

Order intake
Order intake for the first half of the year was SEK 1,152 million, a decrease of 7.5 percent compared to the first half of 2018 (SEK 1,246 million). The decrease is mainly due to some major orders received during 2018.

Sales revenue
Sales revenue amounted to SEK 1,297 million, an increase of 3.0 percent compared with the same period in 2018 (SEK 1,259 million). The increase shows that Combitech has succeeded well with its strategy of becoming a digitalization partner for industry and the public sector and combining expertise and experience from complex digital transformation with knowledge of how to protect security-critical systems and information.

Earnings and Margin
Operating profit (EBIT) was SEK 101 million, an increase of 1 percent compared to the corresponding period in 2018 (SEK 100 million). Operating margin was 7.8 per cent, compared to 8.0 per cent in 2018. Profitability is still good and the reduction of the margin is mainly due to a changed mix between own staff and sub-consultants.

Operating Cash Flow
Operating cash flow was SEK 33 million, compared to SEK 85 million in the first half of 2018. The decrease in cash flow is due to temporary changes in working capital.

For further information
Åsa Scherling, Head of Communications, Combitech
Phone: +46 734 18 77 98, email:
asa.scherling@combitech.se

Ann-Sofi Jönsson, IR Manager, Saab AB
Phone: +46 8 463 02 14, email:
ann-sofi.jonsson@saabgroup.com

About Combitech
Combitech is a Nordic technology consulting company with 1,850 employees in Sweden, Norway and Finland, with special focus on digitalization, cyber security and total defense. The company is an independent company within the defense and security group Saab AB. www.combitech.com