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ÅF AB Interim Report January - June 2013

Fri, 12/07/2013 - 08:30 CEST

For further information, please contact:

 Jonas Wiström, President and CEO                +46 70 608 12 20

 Stefan Johansson, CFO                           +46 70 224 24 01

 Viktor Svensson, Director Corporate Information +46 70 657 20 26

Second quarter 2013
  * Net sales totalled SEK 2,152 million (1,359)
  * Operating profit totalled SEK 153 million (122)
  * Operating profit, excluding integration cost, totalled SEK 191 million (122)
  * Operating margin, excluding integration cost, was 8.9 percent (9.0)
  * Profit after tax totalled SEK 107 million (90)
  * Earnings per share, before dilution: SEK 2.70 (2.66)

First half year 2013
  * Net sales totalled SEK 4,277 million (2,766)
  * Operating profit totalled SEK 319 million (249)
  * Operating profit, excluding integration cost, totalled SEK 374 million (249)
  * Operating margin, excluding integration cost, was 8.7 percent (9.0)
  * Profit after tax totalled SEK 227 million (182)
  * Earnings per share, before dilution: SEK 5.75 (5.38)

A few words from the President, Jonas Wiström:

ÅF's second-quarter operating profit, excluding integration costs, rose by just
over 50 percent to SEK 191 million (122). Costs for the integration of Epsilon,
which was acquired towards the end of 2012, have totalled SEK 55 million, of
which the remaining SEK 38 million were charged to the second-quarter accounts.
Profits have also been affected by a capital loss of SEK 6 million relating to
the sale of shares in an associated company in Spain.

Cost synergies arising from the acquisition of Epsilon are now expected to be in
excess of SEK 80 million a year with the full effect being apparent from 2014.
Epsilon has been trading under the ÅF brand since 1 January, and work on
integrating consulting operations has progressed well. The merger has
significantly strengthened ÅF's market position and its potential to conduct
major assignments for clients in industry and in research-intensive fields.

ÅF's operating margin, including integration costs, was 7.1 percent (9.0) during
the second quarter. If integration costs are excluded, the margin was 8.9
percent (9.0). The main explanation for this slight dip in operating margin is a
somewhat lower capacity utilisation rate for the Industry and Technology
Divisions than in the second quarter last year.

There have, however, been signs of some improvement in the market compared with
the situation in the first three months of the year. There was a slight increase
in investments in industry and energy projects, and the market for
infrastructure has remained strong. This means that the capacity utilisation
rate for ÅF as a whole in the second quarter rose compared with the start of the
year. It is our opinion that this gradual improvement in the market will be
sustained in the months to come.

Growth for the ÅF Group topped 50 percent in the second quarter, most of the
rise being attributable to the acquisitions of Epsilon in Sweden and Advansia in
Norway. Organic growth was 9 percent.

The highest level of profitability was reported by the Infrastructure Division
with an operating margin of 13.0 percent (10.8); operating profit for the
division rose by more than 60 percent against a background of good growth. It is
also gratifying to note that the Industry Division in a period of strong organic
growth has improved its earnings even more quickly than anticipated compared
with the first three months of the year, to report a second-quarter operating
margin of 10.9 percent (12.1). The International Division continued to work in
what remains a relatively weak market in Europe but were still able to maintain
the positive trend in profitability. The division's operating margin was 7.5
percent (5.1). For Technology demand has been somewhat more mixed and the
division reported an operating margin of 7.0 percent (8.0).

ÅF's most important objective is to continue to generate levels of profitability
that place us among the very best performers in our industry - regardless of the
state of the economy. The company now has 7,000 highly qualified employees,
backed up by a network of 17,000 independent consultants. Our ambition is to
continue to create value through growth, both organically and through

Group Head Office:
ÅF AB (publ), SE-169 99 Stockholm, Sweden
Visitors' address:  Frösundaleden 2, 169 70 Solna, Sweden
Tel. +46 10 505 00 00   Fax +46 10 505 00 10
www.afconsult.com / info@afconsult.com
Corporate ID number 556120-6474

The information in this interim report fulfils ÅF AB's disclosure requirements
under the provisions of the Swedish Securities Markets Act and/or the Financial
Instruments Trading Act. The information was released for publication at 08.30
CET on 12 July 2013.

All assumptions about the future that are made in this report are based on the
best information available to the company at the time the report was written. As
is the case with all assessments of the future, such assumptions are subject to
risks and uncertainties, which may mean that the actual outcome differs from the
anticipated result.

This is a translation of the Swedish original. The Swedish text is the binding
version and shall prevail in the event of any discrepancies.

The full report including tables (pdf) is available for download

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