HiQ International: YEAR-END RELEASE 2009

Regulatory News:

January – December 2009

October – December 2009

Significant events during the period

2009 in brief

HiQ performed very well in 2009, with strong cash flows and a very good financial position. Throughout the year HiQ worked hard to strengthen its offering and advance its position. As a result, HiQ gained market shares also in 2009.

Net sales for 2009 amounted to SEK 1,057.7 million and operating profit to SEK 145.6 million, a margin of 13.8 percent. Cash flow from operations amounted to SEK 139.5 million.

The Board of Directors proposes to the Annual General Meeting that SEK 1.10 per share, totalling around SEK 57 million, is distributed to the shareholders through a split and compulsory redemption procedure. The dividend is in line with HiQ’s dividend policy.

In 2009 the market suffered a downturn, which affected the IT sector as well as other sectors. The start of the year was a time of great uncertainty, which limited demand for IT services in the spring and summer. Large organisations looking to streamline and rationalise their operations are trying to strengthen their partnership with a few quality suppliers instead. All in all, this has created opportunities for HiQ to win new business and further strengthen its market position. One obvious example is Volvo Cars, with which HiQ signed a new comprehensive framework agreement in 2009.

In 2009 the Nordic IT-consulting market was characterised by turbulence in the automotive industry and by ongoing restructuring by mobile phone manufacturers. As far as HiQ’s business is concerned, the markets most affected by the recession were those in southern Sweden and the Öresund region, as well as the west of Sweden. Nonetheless, HiQ’s operations in Gothenburg and Skåne performed very well in the circumstances and gained market shares during the year. HiQ’s performance was stable in central Sweden, where the Group has offices in Stockholm, Arboga/Västerås and Linköping, with performance improving in the second half. The performance of the Danish operations was not satisfactory in 2009, although an improvement was seen in the fourth quarter. In Finland HiQ continues to be successful in broadening its client base and developing the business. Demand strengthened in the second half, and overall HiQ performed well in Finland in 2009.

HiQ works with clients in a number of segments such as finance, automotive, telecoms, gaming & entertainment & media, the public sector and defence, and worked successfully to broaden its client base in 2009. HiQ implemented initiatives in areas such as finance, with very good results. Other segments with very strong performance in 2009 were automotive, defence, industry and the public sector.

In 2009 HiQ also intensified its efforts in respect of other areas with substantial market potential for HiQ’s services, such as business-critical IT systems that support our clients’ organisations. Among other things, HiQ offers quality assurance of large IT systems deliveries – an activity that is strong in Finland and grew throughout the Group in 2009.

Other areas in which HiQ sees great development potential include the development of systems and solutions in the media and entertainment segments, as well as multimedia.

HiQ offers a flexible delivery model with a customised offering. We offer specialist expertise for projects on the client's site, in our own facilities and via our development centre in Russia. Demand for projects combining specialist expertise on the client’s site with near-shore development (i.e. in Russia) increased in 2009.

HiQ was named ‘IT Consultant of the Year 2009’ in the magazine Veckans Affärer’s annual survey of buyers of consulting services. This is the third year in succession that HiQ has been top ranked. HiQ was also ranked as Sweden’s best IT consultancy to work for in Universum Communications’ annual survey.

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