Sectra: Sectra’s Nine-Month Interim Report for the May 2015 to January 2016 Period: Positive Earnings Trend and Top Global Ranking in Customer Satisfaction

Regulatory News:

The IT and medical technology company Sectra (http://www.sectra.com) (STO: SECTB) reported increased operating profit and strong cash flow for the third quarter of the 2015/2016 fiscal year. For the third consecutive year, the company had the most satisfied customers among users of IT systems for managing and archiving radiology images (PACS), according to the important customer satisfaction survey in the medical technology industry. Customer confidence is a key success factor for Sectra, which aims to achieve secure, long-term profit growth. Sectra’s earnings, calculated as operating profit per share, have climbed more than 60% over the past five years.

Nine-month period in figures

· The Sectra Group’s order bookings amounted to SEK 874.2 million (1,181.8). Order bookings continued to exceed net sales.

· Net sales totaled SEK 758.4 million (693.1), up 9.4%. Excluding the nonrecurring item of SEK 16.3 million for the sale of patents in the comparative period, net sales increased 12.1%.

· Operating profit totaled SEK 107.5 million (107.9), corresponding to an operating margin of 14.2% (15.6). Excluding the nonrecurring item in the comparative period, operating profit rose 17.4%.

· Cash flow after changes in working capital increased to SEK 123.8 million (32.1). Several of the orders that Sectra received for medical IT systems in the preceding fiscal year have reached the operational phase. This means that invoicing to end customers has begun, which is having a positive impact on the Group’s sales, earnings and cash flow.

Third quarter in figures

· Order bookings amounted to SEK 369.0 million (549.4).

· Net sales totaled SEK 268.9 million (241.6), up 11.3%.

· Operating profit increased 37.9% to SEK 44.0 million (31.9), corresponding to an operating margin of 16.4% (13.2).

· Cash flow after changes in working capital amounted to SEK 65.3 million (neg: 23.6).

Torbjörn Kronander, President and CEO of Sectra AB, comments

"For the third consecutive year, Sectra topped its segment in the industry’s most important customer satisfaction survey for IT systems in healthcare. The survey was performed by the analyst company KLAS, and our system for managing medical images, Sectra PACS, was ranked highest in Europe, the US and globally. Sectra was awarded top ratings for the stability and ease-of-use of its system, as well as for its employees, proactive service, high-quality implementation and training. This ranking in the KLAS survey shows that customers have a high level of confidence in Sectra and our ability to help them deliver efficient healthcare of the highest quality."

"Order bookings are significantly higher than our net sales, which bodes well for the future since many orders are spread over a long period, and we are growing in all areas. Although we are making progress in all areas, I must emphasize that it is unsatisfactory that we have not succeeded in reversing the earnings trend in Secure Communications. Our ongoing efforts to boost our international sales and broaden the business area’s offering to include new customer segments had a negative impact on profit for the period and were not sufficient to entirely compensate for our declining sales to our principal customer in Sweden. In the long term, these efforts are expected to restore our margins and growth to an acceptable level.”

For further CEO comments and information, see the attached interim report.

Presentation of the interim report

Sectra will present its interim report during a teleconference with President Torbjörn Kronander and CFO Simo Pykälistö. The presentation will be held in English.

Time: March 8, 2016, at 10:00 a.m. (CET)

To participate, call:

· SE: +46 85 664 2690

· UK: +44 20 3008 9801

· US: +1 646 722 4897

or follow online via: www.sectra.com/ir20160308

A recorded version will be available on Sectra’s website after the conference: www.sectra.se/irwebcast.

The information in this report is such that Sectra AB (publ) is obligated to disclose in compliance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted to the media for publication on March 8, 2016, at 08:00 a.m. (CET).

About Sectra

The world needs more efficient healthcare and more secure communication. Sectra plays a key role in meeting these needs. Sectra assists hospitals throughout the world to enhance the efficiency of care, and authorities and defense forces in Europe to protect society’s most sensitive information. The company was founded in 1978, has its head office in Linköping, Sweden, with subsidiaries in 14 countries, and operates through partners worldwide. Sales in the 2014/2015 fiscal year totaled SEK 961 million. The Sectra share is quoted on the Nasdaq Stockholm exchange. For more information, visit www.sectra.com.

This information was brought to you by Cision http://news.cision.com

View source version on businesswire.com: http://www.businesswire.com/news/home/20160307006644/en/