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Annual Report 2009

Cybercom Group

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Content

Business review

Cybercom in brief 3

2009 in brief 4

CEO’s report 2009 6

Goals and strategies 8

Cybercom’s areas of focus 11

Corporate responsibility and good citizenship 13

Directors’ report

Directors’ report 14

Summary 2009 14

Operations and organisation 15

Market and market developments 16

Sales and earnings 18

Cash flow and financial position 20

Employees 22 Remuneration guidelines for senior executives 24

Board authorisation for issue of shares 24

Risk and risk management 25

Additional information 26

Share development and ownership structure 26

Outlook 28

Important events after year-end 28

Parent company 28

Financial statements

Consolidated income statement 29

Consolidated statement of changes in equity 29

Consolidated balance sheet 30

Consolidated cash flow statement 31

Income statement – parent company 32

Statement of changes in equity – parent company 32

Balance sheet – parent company 33

Cash flow statement – parent company 34

Five-year overview 35

Definitions 36

Notes 37

Proposed allocation of profit 66

Assurance 66

Audit report 67

Corporate governance

Corporate governance report 68

Board report on internal control 70

Board of directors 71

Executive management 72

Auditors 72

Information

Annual General Meeting 2010 73

Upcoming dates and investor relations 73

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Cybercom in brief

The Cybercom Group is a consultancy focused on advanced IT and telecom solutions. By delivering cost-effective solutions of the highest quality, Cybercom creates business value for its customers. Through global delivery capacity, local presence, and close co-operation with customers, Cybercom strengthens its customers’ operations using turnkey solutions that merge technology and reality.

A strong platform in the Nordics and operations in eastern Europe, Asia, and the US.

Cybercom collaborates closely with its customers and

simultaneously offers global delivery capacity. The company has a strong platform in the Nordics and operations in eastern Europe, Asia, and the US. With 28 offices in 11 countries, Cybercom accepts assignments worldwide. A growth company, Cybercom grew from approximately SEK 535 million in sales in 2006 to over SEK 1,750 million in 2009. By leveraging the extensive industry and operations experience of its over 1,800 employees, Cybercom has become an established partner for solutions in internet services, mobile services, security, embedded systems, and telecom management. At 58 per cent, telecom accounts for the largest percentage of Cybercom’s sales, followed by the public sector, industry, media, retail, and banking and financial services. The company was founded in 1995 and has been quoted on the NASDAQ OMX Nordic exchange since 1999.

Sales by industry

Telecom, 58%

Public sector, 14%

Industry, 12%

Media, 4%

Banking, 3%

Retail, 3%

Other, 6%

Sales by segment

Nordic, 90%

Other Europe, 2%

Asia, 8%

Number of employees by segment

Nordic, 78%

Other Europe, 8%

Asia, 14%

Internet services

Cybercom administers and develops portals for several inter- national enterprises. Drawing on its years of experience, Cybercom helps customers create new digital services and value propositions for online and mobile applications.

Mobile services

Cybercom provides turnkey mobile service solutions that help its customers succeed in their mobile businesses.

Security

Cybercom is Sweden’s leading player in information and IT security consulting. It offers a full range of services, from strategic consulting and analysis to full responsibility for imple- mentation and change processes.

Embedded systems

Cybercom offers expertise that spans the entire field of embedded systems. It provides customers with innovative solutions that incorporate tomorrow’s mobile and wireless technologies.

Telecom management

Cybercom offers expertise, consulting, and services in telecom management and networks. Cybercom consultants work on projects worldwide, helping customers exploit new technologies and grow their businesses.

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2009 in brief

Key Figures

2009 2008

Sales, SEK m 1,751.6 1,781.1

EBITDA, earnings, SEK m 144.1 193.8

EBITDA operating margin,% 8.2 10.9

EBITDA earnings, underlying operations, SEK m 177.9 199.4

EBITDA margin, underlying operations,% 10.2 11.2

Operating profit, EBIT, SEK m –177.7 156.0

EBIT margin,% –10.1 8.8

EBIT underlying operations, SEK m 136.1 161.6

EBIT margin, underlying operations,% 7.8 9.1

Profit/loss after tax, SEK m –209.5 134.0

Earnings per share, EPS, SEK –6.23 4.92

Operating profit/loss and operating margin, EBITDA

0 2 4 6 8 10 12

0 50 100 150 200 250

2005 2006 2007 2008 2009

% SEK m

Sales

0 500 1 000 1 500 2 000

2005 2006 2007 2008 2009

SEK m

Stock price trend, 2009

Sales in line with 2008

Cybercom's sales in 2009 amounted to SEK 1,751.6 million, which is in line with the previous year (1,781.1), despite a weaker market for IT consultants. The EBITDA margin was 8.2 per cent (10.9). Excluding costs related to the completed restructuring programme, the EBITDA margin was 9.8 per cent.

Larger share of public sector assignments

Cybercom’s public sector undertakings increased during the year through several new frame agreements in the Nordics, including the Tax Agency and Elsparefonden (Denmark); Yle and Ittela (Finland); and CSN, the Board of Agriculture, the National Government Employee Pensions Board, Posten, the Armed Forces, the Civil Aviation Administration, the National Board of Health and Welfare, the Social Insurance Agency, and the Tax Agency (Sweden).

Action programme

Cybercom initiated an action programme in Q1 to adapt the company to the current market situation. Costs related to the restructuring programme amounted to SEK 28.2 million, which had an impact on Q1 profits and are therefore included in this year’s earnings.

Goodwill write-down

During Q1, Cybercom posted a write-down on goodwill of SEK 280 million, with SEK 80 million attributable to Sweden and SEK 200 million to Finland. The impairment loss was primarily a consequence of the cutbacks that Cybercom implemented in the action programme, which mainly affected acquired operations, as well as the company's belief that the flagging global economy would continue to influence the Nordic market for IT consultancy services in 2009.

Wider geographic presence

During the year, Cybercom opened new sales offices in New Delhi, India, and San Jose, CA, USA, as well as new customer- driven delivery offices in Bangalore, India, and Katowice, Poland. In December 2009, Cybercom had an established presence in 11 countries with 28 offices.

Partnership with Qt Software Nokia

Cybercom and Qt Software, which is owned by Nokia, entered a partnership deal during the year. Qt Software authors a frame- work for user interfaces and application development that allows applications to be deployed across desktop, mobile, and em- bedded operating systems without the need to rewrite any

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5 source code. Cybercom has worked in the Qt environment on

many customer projects in the telecom and automotive industries. Qt competence is in great demand, particularly for development of mobile services and embedded systems. During the year, Cybercom won Qt development assignments from customers in the US as well as from LG Nortel in Korea and Sunniwell in China.

Expanded global sourcing operations

Cybercom won several new assignments in Global Sourcing during the year from customers in the Nordics and the US.

Polish operations recorded a profit with two global sourcing assignments in telecom. At the start of 2009, 11 Sony Ericsson employees began working in Cybercom’s Stockholm office following cutbacks in Sony Ericsson’s operations in Kista. As a result, the relationship with Sony Ericsson grew and business increased during the year. The assignment involves application management and development of Sony Ericsson’s portal. For the past few years, the task of Cybercom’s operations in Mumbai and Stockholm has been to secure efficient high-quality delivery with 24/7 service.

Growth of networks and mobile services in emerging markets is rapidly.

Growth of 61 per cent and

breakthrough with major operators in Asia

Cybercom has strengthened its telecom management brand on the international market. In 2009, Cybercom became a preferred partner to the largest operators in Asia: Bharti Airtel in India, Telkomsel in Indonesia, VMS/MobiFone in Vietnam, CamGSM in Cambodia, and Etisalat in the United Arab Emirates. All are new customers and new assignments with great potential for 2010.

Growth of networks and mobile services in emerging markets is

rapidly accelerating and creating strong demand for Cybercom’s service offerings.

SEK 100 million new share issue

As authorised by the annual general meeting on 28 April, the board of directors implemented a preferential rights issue in Q2. The oversubscribed share issue generated about SEK 100 million for the company before issue expenses. Im- plementation of the issue was based on Cybercom’s estimate that the global economic downturn would have a clearer impact on the Nordic market for IT consultancy services in 2009. Issue proceeds were used to fortify the company’s financial position:

an extra amortisation of SEK 50 million was made to adapt the company’s capital structure; the remaining SEK 50 million was used to strengthen liquidity.

Offset issue

The board of directors decided to implement an offset issue in Q3 that deviated from shareholders’ preferential rights, to help settle final additional purchase prices of EUR 2,504,515 to the sellers of NSD Consulting Oy and Comprog Oy. Through the offset issue 1,669,123 new shares were issued at an issue price of SEK 16.60 per share. Following the issue, Cybercom’s share capital totalled SEK 36,087,899, corresponding to

36,087,899 shares.

Development assignment for China Mobile Wireless Music

In December 2009, China Mobile selected Cybercom as its partner in a key music services development project. The parties signed an agreement through the end of 2010. Nearly 30 local consultants are now involved in the growing assignment in Chengdu, Sichuan, where the research and development centre for China Mobile Wireless Music is located. China Mobile is the world’s largest mobile phone operator with more than 500 million subscribers.

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CEO’s report 2009

Patrik Boman President and CEO

Strong measures and clear results

2009 was a challenging year. Cybercom acted decisively, im- plementing both forward-looking investments and corrective measures in parts of the company to achieve long-term growth.

Cybercom is now stronger than it was one year ago.

Cybercom is stronger today than it was one year ago.

During a year with challenging market conditions, we became more cost efficient, while achieving a sound equity/assets ratio and satisfactory cash flow from operating activities. In the fourth quarter, financial performance improved over 2008.

The global economic slowdown clearly affected the Nordic IT services market in 2009. In response, we reduced operations in locations that were particularly vulnerable to the recession. We also recorded a goodwill impairment charge and carried out a new share issue. Our proactive measures in 2009 strengthened Cybercom’s financial position, improved the company’s capital structure, and created conditions to carry out several forward- looking initiatives in line with our strategy, through sales and branding activities. In 2009 we broadened our customer base on existing and new markets in Asia through deals with companies such as China Mobile, LG Nortel, and Bharti Airtel.

External response to our action programme has been positive. Last summer's new issue was oversubscribed, and with that and our offset issue, several new owners joined the list of 10 largest owners and several owners expanded their com- mitment. In 2009, Cybercom rose 107 per cent, which out- performed the Stockholm Stock Exchange Index (+40 per cent) and the comparable IT index (+60 per cent). These are indications that we had the right priorities during a difficult year.

Strong local presence and global delivery capacity

Cybercom has advanced its market position over the past few years. With a strong platform in the Nordics and international operations in eastern Europe, the US, the Middle East, and Asia, Cybercom can attractively and cost-effectively offer worldleading players global delivery capacity. Cybercom’s international structure also enables us to accompany our customers in their strategic development and expansion initiatives around the world.

Our global sourcing delivery model strengthens Cybercom’s position with many customers. As competition for our customers grows, so too do their demands on their suppliers. Global sourcing's broad knowledge base allows Cybercom to offer superior quality, cost-effective solutions, and fast deliveries.

While our strategy of the Nordics as our important home market remains unchanged, we recognize that future growth will largely occur outside the Nordics. Over half of Cybercom’s customers in the Nordics are in the telecom industry; a sub- stantial share of these customers have international operations with good experience of in-house global delivery capacity. They find it advantageous that we as providers share the same strategy; we follow our customers, and they establish closer partner relationships with us. Consequently, Cybercom partici- pates in important research and development projects, while establishing closer ties to our customers’ operations. We often accept full responsibility in significant assignments, and such undertakings account for over 50 per cent of our sales.

Internationally broadened

customer base and growth in Asia

Strengthening Cybercom’s financial position early in the year enabled us to invest in long-term initiatives and continue our strategy of focusing on growth markets. At the same time, we expanded our operations in more segments and new locations.

Cybercom broadened its presence in India by opening a sales

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7 office in New Delhi in order to enter the Indian operator market.

In Southeast Asia, we used our Singapore operation as a base to carry out successful marketing campaigns. These

two initiatives produced results. I can proudly note that Cybercom has added the largest operators in Asia and the Middle East to its customer list. Cybercom’s sales in Asia grew by 61 per cent in 2009.

During the year, Cybercom also expanded its presence in the US with a new sales office. A sales presence on the west coast of the US allows us to be close to many global leaders in internet and mobile services, including innovative social media players such as Facebook, Twitter, and Google.

+1 and strengthened brand

The +1 concept is a distinctive element of Cybercom’s corporate soul and the foundation of our success in achieving our goals.

+1 means that all Cybercom employees always strive to exceed the expectations of customers, colleagues, and partners.

Cybercom employees have extensive technical expertise and operational knowledge. They are accustomed to handling com- plete solutions. Our expertise can be divided into mobile services, IT security, embedded systems, and telecom manage- ment. Many of our employees are sought-after experts in their fields in public contexts, strengthening the Cybercom brand. In 2009 we intensified our marketing initiatives and held several seminars and conferences within Cybercom’s areas of expertise, which have been well-attended events.

We conclude that the Cybercom brand is becoming increas- ingly established. This is reflected by our inclusion in an exclusive, limited group of select providers to leading players in the Nordics as well as in Asia, the Middle East, and adjacent regions. We note international acknowledgment of our expertise in IT security, telecom management, and mobile services, where our references in the Nordics are strong and inquiries from customers in Asia are now growing.

Cybercom is a fast-paced, flexible, and successful company.

Our frequent customer surveys indicate a substantial improve- ment in Cybercom's positioning on its active markets, both in the Nordics and internationally, thanks to Cybercom’s employees.

As a direct result of their hard work and commitment in 2009, we showed that Cybercom is a fast-paced, flexible, and successful company – a company with potential for advancement, where employees experience passion, curiosity, and job satisfaction. I am thrilled to have had the opportunity to lead Cybercom; it is incredibly stimulating, and I am constantly impressed by what I see during my work day.

Moving forward with a clear focus on profitability

Looking ahead, I strongly believe that Cybercom will further secure its position in 2010. Considering our market position, stable financial platform, and broad geographic scope, prospects are good for Cybercom to continue to grow and achieve its stated goals. Our focus in 2010 continues to be improved profitability.

While the current market still poses many major challenges, it also offers opportunities. Cybercom is an international com- pany with a strong Nordic base. Globalisation plays an important role moving forward, and we are continuing to grow the company in line with our strategy – to build an international Cybercom, geographically structured for long-term profitable business.

Stockholm, March 2010

Patrik Boman President and CEO

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Goals and strategies

Cybercom's goal is to create shareholder value through robust growth and high profitability, which are achieved by customers viewing Cybercom as an attractive provider of high-quality, cost-effective services performed by qualified and motivated employees.

Business concept

Through world-leading global delivery capacity and local presence, Cybercom strengthens its customers’ operations using end-to-end solutions that merge technology and reality.

Vision

Cybercom will successfully dominate its chosen markets in a leading position for customers, employees, and owners.

Operational objectives

Cybercom's long-term operational objectives are to:

ƒ Become a well-known brand among customers, em- ployees, and job seekers

ƒ Strengthen the company’s presence in existing markets and continue to expand beyond the Nordics

ƒ Broaden the customer base so that no single customer represents more than 15 per cent of sales

ƒ Expand global sourcing services so that they comprise a larger part of sales

Financial targets

Cybercom's financial targets are:

ƒ Earnings before interest and taxes (EBIT) –13 per cent in the long term

ƒ Organic growth –15 per cent on average per year over a business cycle

Operating margin, EBIT

-15 -10 -5 0 5 10 15

2005 2006 2007 2008 2009

%

Target: A 13 per cent operating margin (EBIT).

Fulfilment: In 2009, the operating margin was -10.1 per cent. The substantial goodwill impairment in Q1 and action programme costs in Sweden and Finland are the main reasons for the deterioration. The EBITDA margin for the underlying operation was 10.2 per cent.

Organic growth

-2 0 2 4 6 8 10 12 14 16

2005 2006 2007 2008 2009

%

Target: Organic growth of 15 per cent on average per year over a business cycle.

Fulfilment: In 2009, organic growth was –1 per cent.

Largest customer’s percentage of total sales

0 5 10 15 20 25 30 35 40

2005 2006 2007 2008 2009

%

Target: Largest customer's share of sales not to exceed 15 per cent.

Fulfilment: Cybercom's dependence on individual customers has gradually lessened over the years. In 2009, its largest customer accounted for 20 per cent of sales, however, which was a 3 per cent increase over 2008.

Percentage of employees outside Nordic countries

0 10 20 30 40 50 60

2005 2006 2007 2008 2009

%

Target: 50 per cent of Cybercom employees to be stationed outside of the Nordics.

Fulfilment: Cybercom is expanding geographically into new markets. In 2009, 22 per cent of employees worked outside of the Nordics and 43 per cent outside of Sweden.

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Strategy

Cybercom’s customers place high demands on quality and commercially functional solutions. Close collaboration with customers is essential to achieve high customer satisfaction.

The quality of Cybercom’s value proposition largely depends on how customers are treated, which places high demands on employees – that their knowledge, values, attitudes, and be- haviour generate success. Cybercom constantly works on developing its organisation in order to be an attractive partner.

One important element in this effort is +1, which clearly reflects Cybercom’s values, corporate culture, and soul. Briefly, +1 entails the constant endeavour to exceed existing expectations.

Cybercom’s strategy, on which the development of the organisation is based, focuses on growth and profitability, as well as on building a strong brand.

The key strategies governing Cybercom's operations are to:

ƒ Concentrate on profitability and growth, with a focus on customers for whom information technology (IT) is strategically important for business.

ƒ Be fast-paced and concentrate on strong growth markets.

ƒ Expand within its five core offerings: internet services, mobile services, security, embedded systems, and telecom management.

ƒ Reinforce its reputation and attraction among customers, employees, and labour market participants via brand- boosting activities.

ƒ Form a decentralised organisation with short decision paths and global delivery capacity.

ƒ Create lasting value for customers through long-term partnerships by only recruiting the best employees with the right attitude and by being a service-oriented organisation.

Business processes

Cybercom operations comprise three main processes:

ƒ Business development – development of Cybercom’s services and solutions.

ƒ Sales – planning, sales, and customer relations.

ƒ Delivery – production, delivery, and management of services and solutions through competence and projects to the customer, plus follow-up and evaluation with the customer.

Several support functions, such as PR, marketing, HR, IT, and accounting, supplement the main processes.

The main processes and support functions were developed to enable Cybercom to retain and use the knowledge and experience that the company continually acquires. Results of development efforts are documented on an ongoing basis.

Clear, user-friendly business processes boost the quality of analysis and decision-making and facilitates knowledge transfer among Cybercom’s employees. Cybercom's structure capital is growing and is continually managed by constantly safeguarding important experiences and knowledge.

Business development

Development of new product solutions usually takes between 6 and 18 months from concept to a finished, ready-to-use solu- tion. Cybercom consultants always develop assignments in close cooperation with customers. Cybercom's close relation- ships with its customers have grown gradually and are often a business-critical part of customers’ development initiatives.

Assignments are customer-specific, although sometimes a general product solution is created that is suitable for many customers.

Sales and customer relations

Each customer has special needs and requests, so each sale is unique. The sales process is long and often begins with a frame agreement procurement, followed by discussions on usage areas for the intended solution and the drafting of a requirements specification for Cybercom.

The entire sales process – from initial consultation to order – usually takes 3 to 6 months for local assignments and 6 to 12 months for large outsourcing assignments or global sourcing.

Frame agreements with customers are business critical, as they are to the sector as a whole, due to the trend for customers to procure increasingly large volumes from fewer suppliers. Cybercom now has frame agreements with all major customers.

At Cybercom, account managers work with their key customers in all geographic markets in which the customers operate.

Delivery

Once the customer approves the requirements specification, Cybercom begins to realise the defined service or assignment.

Realisation consists of several phases, which the nature of the project and the chosen method define. Main project phases cover analysis and planning, execution, delivery, wrap-up, and follow-up. Time from acceptance to completed delivery varies depending on project scope and type of delivery commitment.

Application management (AM) and project services

Developing and managing IT projects takes much time and money. Since the late 1990s, many Nordic companies have become international corporations, and a few have become global players in rapidly growing markets. At the same time, several new economies have grown rapidly, and new markets have emerged, such as in China and India. These countries also offer low-cost skilled labour.

Another important driving force behind this growth is new technology, which makes it easier to share resources across national boundaries – through efforts such as improved communication infrastructure, security architecture, and control systems.

IT has made a large part of the gains in a globalised economy possible. To meet customer demand and keep costs competitive, Cybercom has rapidly expanded its capacity and expertise in global sourcing and offers system management – a service that guarantees high quality and service levels at a fixed price.

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10 Cybercom also maintains and develops IT systems that are

already operational, whether developed in-house or by a third party. Its concept clarifies responsibilities, activities, and costs related to support, development, and operation of the system or an application.

Better overview and follow-up

Cybercom’s system management concept focuses on key business processes that are needed for maximum benefit from an application – from business development and management to technical support. The model is soundly structured and enables contracted service levels and accurate cost forecasting.

One or more service-level agreements drive each service.

Cybercom’s management team, together with customer and supplier representatives, follow up these regularly to ensure customer satisfaction.

Tools and methods

Access to the latest technologies enables Cybercom to help customers benefit from new business opportunities.

The ability to balance technology’s cutting edge and commercial feasibility requires a combination of technical know-how and a thorough understanding of customers’

business operations. Expertise in supporting technologies forms the foundation for selecting, implementing, and developing the best solutions for each customer. With a solid understanding of customer operations, Cybercom can contribute its expertise and function as a discussion partner.

Faster development

Today, product development has more technical content and a shorter life cycle, while customers place stringent demands on productivity, security, and quality. Cybercom uses modern tools and methods for system development, project manage- ment, and testing – to assure that all requirements are met,

including established commercial tools and customdeveloped tools.

Cybercom has years of experience with recognized methods and offers certified consultants in each method:

ƒ Agile

ƒ Extreme programming

ƒ RUP

ƒ PPS

ƒ PROPS

Global sourcing

Cybercom offers global sourcing – a method for optimising outsourcing and for selecting the best onshore, nearshore, or offshore option. In global sourcing, Cybercom’s project management works locally – close to customers – and creates and manages teams that develop, implement, test, or manage operations at the location that is best for the customer. For projects that demand daily flexibility, it is natural and most often cost-efficient to be geographically close to customers. In projects that have reached maturity and perhaps apply standardised processes, geographic presence isn’t as important, and implementation can be moved to another country – if advantages outweigh disadvantages.

Depending on customer needs, Cybercom takes on various global sourcing roles. Central aspects of global sourcing include 24/7 availability, increased productivity, high quality, and cost savings – with a focus on core operations and business development. Cybercom runs sourcing projects for mature standardised processes for the entire chain – from development and testing to administration and support.

Cybercom offers project management in China, Estonia, India, Poland, and Romania. In Cybercom's experience, once companies start using these services, outsourcing expands to cover larger, more complex aspects of the operation.

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Cybercom’s areas of focus

Cybercom develops services, applications, systems, products, and software on behalf of its customers worldwide. Assignments are either turnkey projects, in the form of service management, or as specialists in consulting, testing, and development, using leading technologies.

Cybercom can deliver services globally – onshore, near- shore, or offshore. Operations are divided into the following five areas: internet services, mobile services, security, embedded systems, and telecom management.

Internet services

Cybercom provides internet-related services. The company has run and developed portals for several international enterprises for many years. Drawing on its years of experience, Cybercom helps customers create new digital services and value propositions for online or mobile applications.

The portal concept has numerous definitions. At Cybercom, portals refer to web sites, extranets, intranets, communities, and mobile solutions, which provide access in a single location to vast quantities of information and functions. The role of portals has become increasingly important as trading venues and as meeting places for enterprises that want to build customer relationships. Cybercom helps its customers with everything from business analysis to portal solution management. Such projects may involve establishing clear objectives, defining and evaluating the customer’s services, and developing and imple- menting the solution. Through its extensive experience, Cyber- com has acquired a wealth of knowledge that is tough to beat when it comes to capturing and converting users’ needs into new digital services. Integrating users in the process results in a

solution with more accurate services and greater customer loyalty.

Mobile services

Cybercom provides turnkey mobile service solutions to help its customers succeed in their mobile operations. In an increasingly mobile world, new business opportunities open up for companies willing to embrace the technology. Cybercom has been develop- ing mobile services since 1998 and is now one of the leading players in mobile solutions.

Its value proposition covers the complete product life-cycle – from strategies, concept studies, and development to operation and management:

ƒ Consulting

ƒ Mobile portals

ƒ Mobile clients

ƒ Mobile payment solutions

ƒ Bluetooth applications

ƒ Design services

ƒ Hosting

Security

Cybercom is Sweden’s leading player in information and IT security consulting services. The company offers a full range of services, from strategic consulting and analysis to full

responsibility for implementation and change processes.

Cybercom has experts in a broad range of areas – from system architecture to cryptology, from online security to legal affairs and security management, from business issues to project management, from legislation and regulations to technological solutions. Cybercom is successful in IT forensics, in which the company analyzes and investigates IT incidents and testifies in digital crime cases. These skills enable Cybercom to secure customers’ business-critical systems, in which

information and knowledge must not only be protected, but must also be productively and cost-effectively managed. Cybercom changes the way its customers do business – they become safer, more secure, and more effective.

Embedded systems

Cybercom offers expertise that covers the entire embedded systems area, and the company provides its customers with innovative solutions that contain tomorrow’s mobile and wireless technologies. Telecom and product companies in any industry experience increasing product complexity and escalating market requirements regarding technical innovation, shortened develop- ment cycles, and reduced cost. Cybercom, an independent R&D partner, improves its customers’ abilities to meet these

challenges.

Its expertise covers the entire spectrum – from development of analogue electronic products to interaction, design, and usability. Cybercom has developed embedded systems since the 1980s and now has ongoing projects with customers around the globe.

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12 Cybercom’s customers include automotive OEMs and system

suppliers, consumer electronics vendors, mobile phone manufacturers, telecom operators, medical device manufacturers, and stakeholders in defence and security industries.

Telecom management

Cybercom offers expertise, consulting, and services in telecom management, billing, and networks. Cybercom’s consultants have customers worldwide – they work with telecom, service,

and content providers to grow their businesses by exploiting new technologies. Cybercom maintains strong customer relationships by delivering the highest quality consulting services, expertise on various telecom technologies, and in-depth knowledge of current and future trends. Cybercom has years of experience of large- scale development and introduction of mobile networks in emerging markets, and helps operators worldwide to analyse and improve the quality of existing networks.

Cybercom’s 10 largest customers, 2009

Cybercom's 10 largest customers, 57%

Other customers, 43%

Sales by industry, 2009

Telecom, 58%

Public sector, 14%

Industry, 12%

Media, 4%

Banking, 3%

Retail, 3%

Other, 6%

Sales by type of assignment, 2009

Turnkey assignments, such as outsourcing, service management and application management, 51%

Consulting services, 49%

Sales by type of agreement, 2009

Frame agreement, 62%

No frame agreement, 38%

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Corporate responsibility and good citizenship

Cybercom strives to behave responsibly in all countries and in all contexts in which the Group is active. Cybercom’s social accountability initiatives – and its view of humankind, working conditions, and the environment – are based on its values and the UN Global Compact. Global Compact is a programme for companies and organisations that want to contribute to the international work with 10 global principles on human rights, labour law, environmental problems, and anticorruption.

Cybercom has supported this work since 2004. By becoming involved in these issues and supporting the UN’s efforts, the company has agreed to protect and support human rights, while working against corruption, discrimination, and all forms of forced labour.

Cybercom’s board adopted the first edition of its Code of Conduct in 2004. This code is updated regularly and contains rules for business behaviour and for its responsibility in relation to colleagues, customers, vendors, shareholders, regulatory authorities, and the world at large. The code applies to the entire group and all employees can access it on the Cybercom intranet.

At Cybercom, quality means that its services meet or exceed customer expectations, its production is carried out under acceptable conditions, and its customers are satisfied with Cybercom as a company. Accepting responsibility for the impact of the company’s operations on people and the environment is also essential for Cybercom – to be able to grow with continued good profitability.

Supporting SOS Children's Villages

Cybercom signed a long-term partnership agreement with SOS Children's Villages in 2009, and will finance a major part of the activities at a primary school for 200 children in Gikongoro, Rwanda. Cybercom runs customer projects worldwide, including in Rwanda, where Cybercom constructs mobile networks and optimizes their performance. Cybercom is a knowledge company in international growth and Cybercom's employees are highly engaged in supporting SOS Children's Villages and thus contributing to knowledge advancement in a country where the company has ongoing projects. Education is the basis for a child's development and, most importantly, provides the child with opportunities to escape poverty.

Environment

Cybercom’s operations have a relatively limited direct impact on the environment, but the company strives to minimise such effects as far as possible. Parts of its operations are environ- mentally certified in compliance with the international standard ISO 14001. Cybercom has launched a long-term initiative to have all of its operations certified.

As a global supplier of IT services, personal transportation is the single most pressing environmental issue that also has the greatest impact on the climate. Providing consulting services involves a substantial amount of travel by car, air, rail, and public transportation. In general, Cybercom tries to reduce the scope of

such travel and to influence its employees’ choice of transport- ation mode.

To reduce travel, employees are encouraged to hold tele- phone and videoconferences whenever possible. Video- conferences are currently possible in the offices in Stockholm, Ostersund, Tampere, and Helsinki. Ultimately all of the larger offices will be equipped with video conferencing capability.

These investments are also important financially because personal travel is a considerable expense to the company.

Employees are encouraged to travel by train or bus rather than by plane. When choosing a company car, they’re encouraged to select a green vehicle. Most of Cybercom’s offices are centrally located close to train and bus connections for convenient public transportation.

Besides reducing the environmental impact of personal trans- portation, Cybercom is working on raising employee awareness of environmental issues, which are accounted for in all Cyber- com operations. The company requires that (i) its suppliers of office materials and computers comply with TCO 95 and TCO 99, environmental standards, and (ii) all material can be recycled.

Cybercom also continuously takes a variety of measures, large and small, to reduce environmental impact:

ƒ Energy-saving efforts, such as timers to turn out lights after office hours.

ƒ Proper disposal of old IT equipment; equipment is sold for reuse whenever possible, otherwise equipment goes to partners for recycling.

ƒ Sorting of paper and other waste for recycling.

ƒ Purchase of products, consumables, and services that meet high environmental standards whenever possible.

Because climate issues have grown increasingly urgent, the green IT concept has become commonly accepted. But more ecofriendly, power-saving computers are only a small part of green IT. Using IT to reduce environmental impact in totally different areas is much more important. Customers often engage Cybercom to work on projects that directly or indirectly aim to reduce environmental impact, such as more effective power steering in vehicles, or electronic commerce, where even the goods are electronic, such as downloading of mobile phone applications.

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Directors’ Report

The board and CEO of Cybercom Group Europe AB (publ), corporate ID 556544–6522, hereby submit their annual report for the 1 January 2009–31 December 2009 period. All amounts are recognised in SEK thousands, unless otherwise specified.

Numbers enclosed in parentheses refer to 2008. Words such as

“Cybercom”, “the company”, “the Group”, and similar

expressions refer in all cases to the parent company, Cybercom Group Europe AB, and its subsidiaries.

Summary 2009

ƒ Despite market conditions, Cybercom’s sales declined only marginally in 2009 compared with 2008, to SEK 1,751.6 mil- lion (1,781.1).

ƒ Operating margin (EBITDA) weakened to 8.2 per cent (10.9).

ƒ Cybercom won a number of new strategic customers and projects during the year, including Etisalat, Middle East’s leading mobile operator, China Mobile, the world’s largest mobile operator, and Bharti Airtel, India’s largest mobile operator.

ƒ Cybercom entered into a partnership with Qt Software Nokia.

ƒ During the year the company opened new sales offices in India and the US, as well as new customer-driven delivery offices in India and Poland.

ƒ Sales to existing major customers showed good growth.

ƒ An restruction programme to adapt to current market conditions was implemented in Q1 and is expected to reduce annual costs by SEK 60 million. Total programme cost was SEK 28.2 million.

ƒ Excluding restructuring programme costs, the operating margin (EBITDA) was 9.8 per cent.

ƒ In 2009 a goodwill impairment loss of SEK 280 million was recognised, which had an adverse effect on operating margin of 16 per cent. Including this effect, operating margin (EBIT) was –10.1 per cent (8.8).

ƒ Cybercom carried out a new share issue of SEK 100 million during Q2 to strengthen its balance sheet and ensure financial flexibility during a period when international financial markets were functioning poorly.

ƒ During Q3, Cybercom implemented an offset issue for SEK 27.7 million to pay the outstanding additional purchase prices of two acquisitions in Finland (made in 2007 before Cybercom acquired the Finnish operation).

ƒ Cash flow from operating activities, SEK 128.4 million (198.8), continued to be satisfactory, and the company has a stable financial position.

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Operations and organisation

Cybercom is a leading Nordic supplier of advanced IT consult- ancy services, with global operations in selected market segments such as telecom and security solutions. With 1,818 employees in 11 countries at the end of 2009, Cybercom is extremely well positioned to be able to offer international enterprises advanced, cost-effective services that help customers to improve their value proposition and operations.

Cybercom’s value proposition focuses on five main areas:

internet services, mobile services, security, embedded systems, and telecom management. The company’s deep and broad expertise is the common denominator for all of these areas, andas a result, the company has long been a major supplier to leading international companies such as Ericsson, Nokia, Millicom, Sony Ericsson, Alma Media, Kone, Nokia Siemens Networks, Volvo and TeliaSonera.

The company’s strategy also includes a focus on complete solutions, where Cybercom accepts full responsibility for projects rather than merely providing customers with extra staffing. Complete solutions currently account for 51 per cent of operations, and the objective is to further increase that percentage.

In 2009 Cybercom conducted business in three geographic segments: the Nordics, Other Europe, and Asia. The delivery model is based on combining local presence and sensitivity to customer needs with cost-effective delivery capacity, both locally and from the company’s operations in India, China, Romania, Poland, and Estonia.

Cybercom was founded in 1995 and has been quoted on the NASDAQ OMX Nordic exchange since 1999.

Cybercom conducted business in three geographic segments: the Nordics, Other Europe, and Asia.

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Market and market developments

The recession left a deep mark on 2009 – also on the IT consulting industry, including Cybercom. Demand for IT consultancy services weakened throughout the Nordics, forcing many IT consultancies to adapt their delivery capacity.

Demand within the telecom industry was relatively stable during the year, despite significant cost-containment initiatives among several major telecom companies. Customers

increasingly source services from low-cost countries. This trend benefits Cybercom, which offers cost-effective solutions as part of its global delivery offering. Nevertheless, competition for assignments continues to intensify; many local players are being forced to cut prices just to stay in the running, while major international players are becoming increasingly competitive as assignments become more global.

Demand in the manufacturing export industry, especially in Finland, was weak during the year. The international recession had a severe impact on many major manufacturers in the Nordics, which in turn resulted in austerity measures, including within IT. These customers are also more interested in low-cost deliveries, though so far to a lesser extent than the telecom industry.

Continued strong demand in the public sector benefits Cyber- com, especially in the Stockholm region and in Denmark. Effects of the recession were somewhat milder in Denmark than in the other Nordics.

Demand for qualified consultancy services involving deploy- ment of new mobile telephony services in the developing world continued to be solid during the year.

Internet services

Demand for internet services continued to be relatively good.

Many companies continue to invest in portal solutions and e- commerce services, in part because of lower transaction costs.

The internet is also continuing to evolve from being a shop window to becoming a complete market place. This trend drives demand for increasingly complex internet services. The price scenario became differentiated during the year; prices

experienced downward pressure in segments with a large supply of expertise, while prices rose in other areas where access to skilled developers is still limited.

Important customers in internet services include the Swedish Public Employment Service, H&M, ASSA ABLOY, the Swedish Municipal Workers’ Union, and Sony Ericsson.

Mobile services

Demand for mobile services was relatively good during the year.

Cybercom has benefitted to some extent from the challenges that many telecom companies currently face, where one im- portant response is to develop new services and products. Some parts of the telecom industry, such as mobile phone manu- facturers, are undergoing restructuring. This general trend is expected to continue, which could potentially result in reduced demand for Cybercom’s services. Cybercom is preparing for this possibility by broadening its customer base and reducing dependence on individual customers. One important measure is to increase sales to international telecom operators for whom Cybercom conducts much interesting application development.

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17 Prices for staffing assignments in customer projects are under

constant pressure, in part due to increased internationalisation, which entails increased competition from major international consultancies. Cybercom is approaching this challenge by working as much as possible with complete solutions that generate potential for improved profitability and by offering cost- effective delivery capacity from its operations in China, India, Romania, Poland, and Estonia.

Major customers in the field of mobile services include Nokia, Ericsson, NokiaSiemens Networks, Sony Ericsson, and Telia- Sonera. New customers include China Mobile and Scalado.

Security

Demand for security services was solid in 2009. Security issues are growing in importance in all IT segments and Cybercom’s value proposition is extremely competitive, which is reflected by its rapidly growing customer base of major companies in fields such as financial services. The price scenario for Cybercom’s services is good, with no downward pressure on prices.

Important customers in security include SOS Alarm, SL, and Bankgirocentralen. Due to the business-critical and sensitive nature of many of these assignments, it is common not to mention the names of customers in this segment.

Embedded systems

Demand for embedded systems was relatively stable, albeit at a lower level than in 2008. Cybercom’s expertise in development of communications solutions for the automotive industry has

been in demand despite the adverse effects of the recession.

However, downward pressure on prices has been significant.

The company deals with this trend by offering advanced expertise from the telecom industry to automotive manufacturers and the defence industry. Cybercom has developed a concept for “intelligent” vehicles, AutoAppStore, which has attracted strong interest from a number of non-Nordic automotive manufacturers.

Major customers in the field of embedded systems include Ericsson, Volvo AB, Saab, and Kapsch TrafficCom.

Telecom management

Demand has been strong in telecom management during 2009.

Cybercom provides services for telecom operators associated with their initiatives to plan, build, test, and run networks. Cyber- com is mainly active in Africa, the Middle East, Asia, and South America, where there is a strong need to expand network capa- city, which comprises the basis of the solid demand for the company’s services. Cybercom’s operations in this segment are based in Singapore, with sales offices in Dubai and New Delhi, India. The operation is run based on a limited number of highly qualified Cybercom employees who are backed up by a large number of subcontractors. Profitability continues to be good, with an assortment of new customers added during the year, includ- ing Etisalat, Bharti Airtel, and VMS MobiFone (Vietnam). These operators are all market leaders in their respective regions.

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Sales and earnings

After rapid expansion in 2007 and 2008, in 2009 the company focused mainly on streamlining operations and strengthening and developing its customer offerings. Integration of acquired operations continued, in part to take advantage of synergistic opportunities involving the expertise in the various operations within the Group and in part to improve operating and financial management and follow-up. The recession and associated flagging demand for IT services accelerated initiatives aimed at reducing non-personnel-related expenses and increasing delivery efficiency.

In response to weaker demand in certain industries, operations in Sweden and Finland were adapted in Q1, which resulted in staff cuts of 110 persons. The action programme soon had a beneficial effect on efficiency and utilisation, and full impact on the company’s costs is expected in 2010.

During the year Cybercom placed a sales coordinator in San Jose, CA USA, to work with existing Cybercom customers who want to base more of their decision-making at their development operations in the US. Cybercom’s ability to deliver what the customer wants, at the right price, from the most suitable unit in the world enables the company to continue to be a successful supplier to these customers.

At year-end the Group had 1,818 employees (1,982).

Sales

SEK m 2009 2008 Changes, %

Sales 1,751.6 1,781.1 –1.7

Sales (2008 exchange rate) 1,802.5 1,781.1 1.2 Difference 2.9%

Group sales fell 1.7 per cent. Currency effects had a negative impact on sales. Based on the average exchange rate in 2008, sales in 2009 were 1.2 per cent higher than in 2008. Fewer company consultants and a somewhat lower utilisation rate for these were offset in part by higher sales from more sub- contractors in, amongst others, Singapore.

Number of billable employees (full-time equivalents) declined to 1,544 (1,612), primarily because of the restructuring

programme mentioned above.

Net sales per employee amounted to SEK 995,000 (972,000).

Average price per sold hour in the Group showed a weak negative trend. While the growing percentage of production in low-cost countries contributed to a reduction of the average price, this trend was offset by a larger percentage of complete solutions, which often command a higher hourly rate because Cybercom undertakes full responsibility for such projects.

When customers seek to supplement staffing on their own projects, the focus of many Nordic customers continues to be on lower prices. In some areas, this pressure on prices resulted in price cuts. This price pressing, however, subsided during the latter part of the year.

Financial position

SEK m 2009 2008 Change, %

Sales 1,751.6 1,781.1 –1.7

Staff costs –1,079.3 –1,098.5 –1.7

Other direct expenses –281.4 –265.4 6.0

Gross profit 391.0 417.3 –6.3

Other external expenses –246.9 –223.4 10.5

Operating profit, EBITDA 144.1 193.8 –25.7 Depreciation and amortisation –41.8 –37.8 10.5

Write-down, goodwill –280.0

Operating profit/loss, EBIT –177.7 156.0 –213.9

Financial items –27.3 –39.4

Profit/loss before tax –205.0 116.6 –275.8

Tax –4.1 –30.0

Profit/loss from continuing

operations –209.1 86.6 –341.5

Discontinued operations –0.4 47.4

Profit/loss for the year –209.5 134.0 –256.3

Direct expenses remained essentially unchanged compared with 2008. Direct expenses other than salary expenses – primarily for subcontractors – rose 6 per cent, mainly due to an increase in volume.

Meanwhile, salary expenses as a percentage of total costs decreased in 2009. Staff costs per employee amounted to SEK 593,000 (570,000), a 4.1 per cent increase.

The restructuring programme initiated during Q1 affected 110 employees – 39 employed in Sweden and 71 in Finland – who had to leave the company. The total cost of the programme was SEK 28.2 million. The programme reduces the company’s annual costs by SEK 60 million, including SEK 15 million that had an impact on 2009.

The effect of the action programme on earnings is less than the reduction in costs. This is due to lower revenues,as well as lower costs since many of the employees who were laid off had some, albeit inadequate, capacity utilisation. The programme had a significant positive impact on capacity utilisation in the involved units.

As an integral component of development and governance of its operations, Cybercom continually monitors its cost base to increase efficiency and strengthen competitiveness.

The one-off costs related to this action programme had a negative impact of SEK 28.2 million on operating profit.

Damages from a dispute with a former supplier of telephony services had a negative impact of SEK 5.6 million on earnings in 2009. These costs are included in other external expenses in the table above. Excluding these expenses, EBITDA was

SEK 177.9 million (199.4) – equivalent to an EBITDA margin of 10.2 per cent (11.2). EBIT excluding these expenses is SEK 136.1 million (161.6), or an EBIT margin of 7.8 per cent (9.1). This decrease compared to the previous year is mainly attributable to a somewhat lower utilisation rate in the wake of the international recession.

Net financial items stood at SEK –27.3 million (–39.4); this figure includes interest expenses of SEK –17.5 million (–39.6) for loans taken to acquire auSystems (2007) and Plenware

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19 (2008). A loss before tax of SEK 205.0 million (profit: 116.6),

equivalent to a net margin –11.7 per cent (6.5), was significantly impacted by the goodwill write-down of SEK 280 million.

In 2009 a rights issue was carried out to strengthen the balance sheet by making an amortisation payment of

SEK 50 million on existing loans, which had a positive effect on interest expenses.

During the period the Group’s effective tax rate was 2.0 per cent (–25.7). Tax expense is calculated based on the current tax rate for the parent company and each subsidiary. Temporary differences and existing loss carry-forwards are taken into account. The positive tax rate is due to factors such as the goodwill impairment charge, which is not tax deductible.

Nordic 2009

SEK m Nordics Sweden Finland Denmark Revenue from external

customers 1,622.1 1,215.3 358.4 48.4 Revenue from other

segments 20.8 10.2 2.4 11.0

EBITDA 161.8 111.8 37.0 13.0

Number of employees 1,402 1,012 352 38

2008

SEK m Nordics Sweden Finland Denmark Revenue from external

customers 1,694.3 1,273.1 376.1 45.1 Revenue from other

segments 12.3 11.2 0.9 13.1

EBITDA 216.4 153.5 55.7 13.0

Number of employees 1,560 1,107 419 34

Cybercom Sweden

The operation in western Sweden primarily focuses on services in embedded systems and wireless communications solutions, including Bluetooth technology. Cybercom is the development partner of several leading Swedish and foreign companies thanks to the company’s acknowledged expertise in wireless communication and user interfaces.

In southern Sweden, Cybercom mainly works with mobile services and portal solutions projects for telecom customers.

In central and northern Sweden, Cybercom mainly works in telecom, industry, and the public sector and has a highly competitive offering, particularly in security solutions. During the year the Stockholm operation and Group headquarters moved to new, more appropriate and cost-effective premises.

Major Cybercom Sweden customers include the National Labour Market Board, ASSA ABLOY, Ericsson, Nokia, SAAB, Stockholm County Council, Stockholm Transport, Sony Ericsson, Tele2, TeliaSonera, and Volvo.

The number of employees at year-end was 1,012 (1,107).

The action programme during Q1 2009 reduced the number of employees by 39. In addition, some adjustments to delivery capacity were done continuously throughout 2009.

Cybercom Finland

Cybercom’s operation in Finland primarily focuses on telecom, industry, and media. Its assignments comprise development of mobile solutions, intelligent machines, and service management.

The company also performs several hosting assignments; about 5 per cent of Finland’s total internet traffic passes through Plenware’s hosting services.

Major customers include Alma Media, Kone, Nokia Siemens Networks, Nokia Terminals, and Sandvik. The number of employees at year-end was 352 (419). The action programme during Q1 2009 reduced the number of employees by 71.

Cybercom Denmark

The Denmark operation provides advanced system develop- ment, including services relating to Oracle’s database products.

BEC, the National Labour Market Authority, Nordea, and PFA Pension are among Cybercom Denmark’s major customers.

The company had 38 (34) employees at year-end.

Other Europe

SEK m 2009 2008

Revenue from external customers 10.2 16.9

Revenue from other segments 32.7 29.9

EBITDA –2.6 –7.1

Number of employees 148 154

Cybercom Poland

Cybercom has three offices in Poland: Warsaw, Katowice, and Łodz. The Katowice office opened during the year to run a project for a major Nordic telecom customer. Cybercom Poland mainly provides qualified services to Cybercom Sweden and its customers, though its local operation is also growing.

Important customers include ST Ericsson, Nokia Siemens Networks, Teleca, and Sony Ericsson.

The company had 61 (81) employees at year-end. Some adjustment of delivery capacity occurred in 2009 to adapt the operation to somewhat slower-than-expected growth in local operations.

Cybercom Romania

Cybercom Romania conducts qualified development and testing services with a focus on the telecom industry. The company is a subcontractor to Cybercom’s Nordic company.

Major end customers include Nokia, Itella, and Metso.

The company had 53 (34) employees at year-end.

Cybercom Estonia

The Estonia office mainly provides cost-effective delivery support to the Finnish operation.

Major end customers include Nokia and Savox.

The company had 34 (39) employees at year-end.

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20 Asia

SEK m 2009 2008

Revenue from external customers 118.4 69.6

Revenue from other segments 23.8 18.9

EBITDA 11.9 0.0

Number of employees 248 254

Cybercom India (JV)

India offers advanced development, testing, and maintenance services to the Cybercom companies, primarily Sweden, and strengthens Cybercom’s global sourcing proposition. The company is a joint venture with the Indian company Datamatics, which enables flexible, efficient staffing.

Major customers include Sony Ericsson, ASSA ABLOY, and HSB.

The company had 162 (110) employees at year-end, half of whom are considered Cybercom’s employees.

Cybercom China

Cybercom China provides qualified development and testing services with a focus on the telecom industry. The company is

a subcontractor to Cybercom’s Nordic operations, but local sales are also rapidly growing.

Major customers include Ericsson, Nokia, and China Mobile.

The company had 138 (167) employees at year-end. Some adjustment of delivery capacity occurred in 2009 to adapt the operation to demand. Late in the year, some recruiting activities began.

Cybercom Singapore

Cybercom’s Singapore operation offers strategic consulting and outsourcing services (”Managed Services”) for construction and operation of telecom networks in nearby regions such as southeast Asia, the Middle East, and Africa. A salesperson was placed in New Delhi during the year to address the Indian market.

Major customers include Millicom, Etisalat, and CAMGSM (Cambodia).

The company had 28 (32) employees at year-end. The operation had also engaged a large number of subcontractors during the year, equivalent to about 80 FTEs.

Cash flow and financial position

Consolidated cash flow (abbreviated)

SEK m 2009 2008

Operating income and non-cash items 117.4 128.9

Change in working capital 11.0 69.9

Cash flow from operating activities 128.4 198.8 Cash flow from investing activities –26.5 –283.4 Cash flow from financing activities –85.6 118.5 Year’s cash flow from continuing operations 16.4 33.8 Year’s cash flow from discontinued operation –0.5 52.4 Cash flow for the year 15.9 86.2

Cash generation 119% 154%

Cash flow from operating activities

During the period cash flow from operating activities was SEK 128.4 million (198.8).

Despite a general trend towards longer collection periods among many customers, especially large international com- panies, operating capital has developed favourably due to substantial efforts by the company to manage accounts receivable and accounts payable more efficiently. Efforts to streamline management of operating capital continue in order to tie up as little capital as possible, given the conditions inthe markets where Cybercom is active.

Working capital continued to develop positively in 2009, though not to as great an extent as in 2008. In 2008 an increasing sale of accounts receivable had a substantial impact on working capital, which is also the reason that cash generation – cash flow from operating activities divided by operating profit

for the year and non-cash items – was lower in 2009 than in 2008.

Cash flow from investing activities

Cash flow from investing activities was SEK –26.5 million (–283.4) in 2009. In addition to investments in property, plant, and equipment and intangible assets, the additional purchase price related to previous acquisitions of companies in Finland (before Cybercom acquired the Finnish operation) and Nexus are also included in cash flow from investing activities.

Net investments in property, plant, and equipment totalled SEK 7.4 million (10.4) in 2009. Net investments in intangible assets totalled SEK 7.8 million (3.4). Together these investments account for 0.9 per cent (0.8) of sales in 2009.

Cash flow from financing activities

Cash flow from financing activities was SEK –85.6 million (118.5) in 2009. In 2009 Cybercom repaid about SEK 170 million on existing loans and reduced its leasing commitments. A new share issue carried out in Q2 of 2009 raised SEK 100 million.

References

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