Interim Report: January 1 – September 30, 2009

July–September 2009
• Net sales amounted to 39,206 (54,450) kSEK.
• Operating income before depreciation amounted to 959 (1,517) kSEK.
• Operating income amounted to -1,707 (-914) kSEK, and the operating margin was -4.4 (-1.7) %.
• Net income after tax amounted to -1,884 (-1,474) kSEK.
• Earnings per share amounted to -0.28 (-0.23) SEK.
• Cash flow from operating activities for the period amounted to 1,814 (1,809) kSEK.

January–September 2009
• Net sales amounted to 150,670 (182,314) kSEK.
• Operating profit before depreciation and restructuring costs amounted to 1,734 (6,490) kSEK.
• Operating profit before depreciation amounted to -3,976 (6,490) kSEK.
• Operating profit amounted to -11,704 (-829) kSEK, and the operating margin was -7.8 (-0.5) %.
• Net income after tax amounted to -12,296 (-2,544) kSEK.
• Earnings per share amounted to -1.80 (-0.43) SEK.
• Cash flow for the period amounted to -3,437 (322) kSEK.

Key events during the period
• Starting in 2009, Generic is operating under a new, more cost-effective group structure consisting of three operating companies and a parent company that is being gradually streamlined.
• New CEOs have been appointed at the parent company, Generic Mobile, Generic Systems, and Generic Solutions.
• The rationalization program will continue in 2009 alongside aggressive initiatives to increase revenue.
• Restructuring costs have reduced earnings during the period by approximately 5,700 kSEK; among other measures, approximately 15 employees were laid off in February 2009 due to a shortage of work.
• The parent company has acquired the minority shareholders’ shares in Generic Mobile.
• The company’s financial position has deteriorated during the period due to payments primarily related to investments.

Significant Events After the Reporting Period
• After the end of the reporting period, the Board of Directors decided to propose a new share issue of SEK 10.1 million with preferential rights for existing shareholders. The proposal is subject to approval at an extraordinary general meeting on November 23, 2009, and is contingent upon the new share issue being fully covered by subscription commitments and guarantees.
CEO’S COMMENTS
Generic is performing increasingly well, despite the continued weak economic climate. In June, all operating companies reported positive operating profits, which marked something of a turnaround. The third quarter, which includes the summer vacation period, is always a slow period for companies engaged in consulting. This year, however, performance has exceeded expectations, and in September, all three operating companies and the Group once again reported positive operating profits.
The telecom business, which has undergone major changes during the year, delivered a strong quarter with increased network traffic and greater demand for handsets and messaging services, contributing to Generic Mobile once again demonstrating stable profitability. In addition, the company has reduced its workforce and increased sales through partner channels rather than direct sales.
In the consulting business, Generic Solutions had a strong workload during the third quarter, and conditions remain favorable as we see signs of an increased number of new projects among our customers. The main challenge lies in addressing the pressure to lower hourly rates resulting from the current economic climate. Generic Systems experienced a decline in volume during the period, which has had a negative impact on profitability since the summer. For Generic Systems, the defense market remains the primary focus, but we are actively working with new clients who can benefit from the expertise and experience we have built up through our long-term work in the defense sector.
A common theme across the entire consulting business is that Generic is now seeking strategic hires who can complement our offering and increase volumes. Throughout the year, we have focused on cost control and streamlining, which are beginning to yield results. We can now complement this with an increased emphasis on sales activities.
Generic’s main strategy is to be a specialized service company offering services in communications, information management, security, and systems development to customers in Sweden and internationally. We believe in long-term growth in all sectors where the company is active. Our goal is for all operating companies and the Group to be profitable, demonstrate sound and profitable growth, and be a leading company in Sweden within selected niches.
After the end of the period, the Board of Directors decided to propose a new share issue that will strengthen our financial position and enable more long-term development of the business.

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