SECTRA: Sectra’s Interim Report for the May–july 2014 Period: Increased Profit and Order Bookings

Regulatory News:

Sectra AB (STO:SECTB)

· The IT and medical technology company Sectra (STO: SECT B) increased order bookings 56.7% to SEK 388.1 million (247.7).

· Net sales rose 21.2% to SEK 212.4 million (175.3).

· Operating profit rose 191.4% to SEK 40.5 million (13.9), corresponding to an operating margin of 19.0% (7.9).

· The sale and licensing of patents in Business Innovation had a positive impact of SEK 16.3 million on sales and operating profit. Excluding this item, net sales rose 11.9% to SEK 196.1 million and operating profit rose 74.1% to SEK 24.2 million, corresponding to an operating margin of 12.3%.

· Cash flow after changes in working capital amounted to SEK 28.0 million (neg: 8.0).

Torbjörn Kronander, CEO and President Sectra AB, comments:

"Several long-term customer contracts with major healthcare suppliers in the US, UK and Scandinavia, for example, contributed to the increase in order bookings.”

"Seasonally, this is usually a weak quarter for Sectra, but the variation between quarters declined slightly due to the increased proportion of long-term customer contracts. The first quarter was better than usual this year, due to high order bookings and a year-on-year increase in profit. However, the outcome includes a positive nonrecurring effect of SEK 16.3 million from the sale and licensing of patents.”

"There is still considerable scope for growth in Sectra’s niche areas, which was confirmed by the increase in order bookings reported by all business areas during the first quarter. However, not all operations or individual markets developed at the pace we desire. I am mainly referring to partner sales in some emerging markets and to the Secure Communications business area, which despite improved operational efficiency, still requires greater numbers of customers.”

"Sectra’s profitability remains favorable. The target margin for the Group is 15%. Including the nonrecurring effect from the patent transaction, we reported an operating margin of 17.4% for the most recent rolling 12-month period. Excluding the nonrecurring effect from the patent transaction, the profitability ratio was 15.8%. This means that our financial focus will now concentrate on growing operating profit, while maintaining our operating margin. Growth will be achieved through the development of partnerships with existing customers, increased sales of software and cloud services, and new products and services in segments related to, or within, existing areas.”

Please find the full version of the interim report enclosed (PDF).

Telephone conference September 8, 2014

with Dr. Torbjörn Kronander, President and CEO of Sectra AB and Simo Pykälistö, CFO and Executive VP of Sectra AB

· Time: 2:00 p.m. (CET)

To participate, call:

· Sweden +46 (0)8 51999350

· UK +44 2031940545

· US +1 8552692606

The presentation can also be followed live via http://media.fronto.com/cloud/sectra/140908/

and a recording will be available afterwards via http://www.sectra.se/irwebcast.

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. The information was submitted to the media for publication on September 8, 2014 at 1:00 p.m. (CET).

About the Sectra Group

Sectra was founded in 1978 and has its roots in Linköping University in Sweden. The company’s business operation includes cutting-edge products and services within the niche segments of medical IT and secure communication. Sectra has offices in 12 countries and operates through partners worldwide. Sales in the 2013/2014 fiscal year totaled SEK 853 million. The Sectra share is quoted on the NASDAQ OMX Stockholm exchange. For more information, visit www.sectra.com

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