SECTRA: Sectra’s Interim Report May 2013 – January 2014: Number One for Customer Satisfaction and Increased Profit

Regulatory News:

SECTRA (STO:SECTB):

Nine-month period

· The IT and medical technology company Sectra (http://www.sectra.com/) (STO: SECT B) increased its operating profit 53.3% to SEK 73.9 million (48.2), corresponding to an operating margin of 12.7% (8.5).

· The Group’s net sales rose 2.5% to SEK 583.2 million (568.9).

· Cash flow after changes in working capital amounted to SEK 104.3 million (127.6).

· Order bookings rose 16.8% to SEK 661.1 million (566.1).

Third quarter

· Operating profit increased 45.0% to SEK 30.6 million (21.1), corresponding to an operating margin of 14.6% (10.3).

· Net sales rose 2.1% to SEK 209.6 million (205.2).

· Order bookings increased 10.1% to SEK 256.5 million (232.9).

Comments by Torbjörn Kronander, President and CEO of Sectra AB:

During the quarter, we learned that hospitals in the US had given our medical IT system, Sectra PACS, the top ranking in the industry’s foremost customer satisfaction survey, conducted by the analyst company KLAS. We are extremely happy and proud to have been named "Best in KLAS.” Customer satisfaction is also the single most important factor for long-term success and profitability.

Sectra’s profitability target is an operating margin of 15% and we achieved 12.7% for the nine-month period. For the third consecutive quarter, a positive profit trend has been recorded. Through internal efficiency enhancement and a focus on favorable transactions with strong margins, we are continuing to approach our profitability target.

Sectra assumes a long-term approach to customer relations in its operating areas and a growing portion of the industry’s sales are being derived from multi-year agreements with customers purchasing medical IT systems and secure communication solutions as a service. Sectra’s financial strength is thus giving us an increasingly important edge on our competitors and providing a sense of security for our customers.

The favorable growth of our largest business area – Imaging IT Solutions – was mainly attributable to long-term managed service agreements. Within this business area, the percentage of sales from new managed service agreements financed internally by the Group increased to 9% (3) during the nine-month period. This increasing proportion of internally financed managed service agreements has given Sectra a more stable trend at the Group level, since growth and profits from customer projects are distributed evenly over the duration of the agreements.

In summary, we feel confident in our future prospects, having been bolstered by praise from satisfied customers and increased order bookings.

Read more in the full interim report enclosed.

TELECONFERENCE March 4, 2014 at 9:30 a.m.

with President Torbjörn Kronander and CFO Simo Pykälistö

To participate, call:

Sweden: +46 8 505 564 87 UK: +44 207 660 2078 US: +1 855 716 1592

The presentation will be held in English and can also be followed online via:

http://media.fronto.com/cloud/sectra/140304/

A recorded version of the presentation will be available on Sectra’s website under the heading Investor/Financial presentations (http://www.sectra.com/corporate/investor/financial_information/financial_hearings.html).

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 4, 2014, at 8:00 a.m. (CET).

Press photos: http://flickr.com/photos/sectramedicalsystems

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 2012/2013 fiscal year totaled SEK 817 million. The Sectra share is quoted on the NASDAQ OMX Stockholm exchange. For more information, visit www.sectra.com.

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