Opus Group: Year-end report (January – December, 2012)

POSTED 21 February 2013

Opus Group: Year-end report (January – December, 2012)

Strong growth in the fourth quarter and takeover of a third of Bilprovningen

Full year (January – December 2012)

• Sales amounted to SEK 469.0 million (230.0), a sales growth of 103.9 percent
• Operating profit before depreciation (EBITDA) amounted to SEK 30.0 million (28.6), corresponding to an
EBITDA margin of 6.4 percent (12.3)
• EBITDA includes non-recurring costs of SEK 17.6 million (0) for acquisition-related costs of Opus Bilprovning and
start-up costs for new programs in North America 2,3 (0)
• EBITDA adjusted for non-recurring costs amounted to SEK 49.8 million, representing an EBITDA margin of 10,6
• Cash flow from operating activities amounted to SEK 55.5 million (35.2). Cash flow changed positively because
Opus Bilprovning contributed to working capital during the period November 5 to December 31
• Profit after tax amounted to SEK -2,3 million (-5.2)
• Earnings per share before and after dilution amounted to SEK -0.01 (-0.03)
• The Board proposes a dividend of SEK 0.02 (0.02) per share for 2012

Reporting Period (October – December 2012)
• Sales amounted to SEK 176.6 million (61.8) a revenue growth of 186.2 percent
• EBITDA amounted to SEK 5.7 million (2.6), corresponding to an EBITDA margin of 3.2 percent (4.1)
• EBITDA includes non-recurring costs of SEK 13.6 million (0) for acquisition and start up costs for Opus Bilprovning
• Cash flow from operating activities amounted to SEK 31,1 million (15,2)
• Profit after tax amounted to SEK -6.0 million (-5.7)
• Earnings per share after dilution amounted to SEK -0.03 (-0.03)

Strong organic U.S. growth and acquisition of a third of Swedish Bilprovningen pave the way for continued growth in 2013

Excluding one-time costs for acquisition related expenses, the company delivers EBITDA of about 49,8 MSEK for 2012, representing an EBITDA margin of about 10 percent. For 2013, we see continued growth in parallel with improved profitability. This is due to new vehicle inspection contracts in the U.S. and the acquistion of Opus Bilprovning. In addition, the IP rights acquired in connection with the acquisition Systech in 2008 will be fully depreciated in April of this year, which will also have a positive effect on net earnings.

Furthermore, we can now, after the balance sheet at closing has been completed, note that the vendor note was about 10 MSEK lower than originally announced and that settlements with AB Svensk Bilprovning led to positive changes in the cash position of Opus Bilprovning. The cash position of Opus Bilrovning at year end amounted to approx. SEK 76 million.

The international operation of business unit Vehicle Inspection (formerly known as North America) continue to deliver strong organic growth thanks to two new vehicle inspection contracts implemented in 2012, Wisconsin and North Carolina. In addition, the acquisition of ESP in January 2012 contributed to acquisition-driven growth in the segment during the year. In total, Opus’ Vehicle Inspection division now manages over 14 million inspections annually. In the U.S., the company has become one of the market’s top three players. During 2013, more government procurements will take place, which means this can be an exciting year for the international Vehicle Inspection operation.

The new Swedish Vehicle Inspection subdivision consists of Opus Bilprovning AB, which was acquired on November 5, 2012 from AB Svensk Bilprovning. The work to integrate the business is currently ongoing. The operations is going well and our personnel have a strong focus on customer satisfaction. We have also recently hired Per Rosen as Opus Bilprovning’s new CEO. Per, who in his previous position was CEO at Upplands Motor Group, is a strong addition to the Opus Group, and will start his position on April 1, 2013. Immediately after the takeover Opus Bilprovning launched the new service "Drive-In", which means that motorists can have their vehicle inspected without prior reservation. At Opus Bilprovning’s website www.opusbilprovning.se, customers can see which stations are open for Drive-In on any particular day. We look forward to bringing more innovative services to the Swedish vehicle inspection market in the near future. Due to the acquisition we incurred significant one-time costs, resulting in negative reported operating profits for the short period in Q4 when Opus Bilprovning was consolidated into our group.

The Opus Equipment business unit (formerly known as Europe & Asia) had a difficult year in 2012, with a sharp decrease in sales volume (about 17%) related to the general economic situation and the macroeconomic situation in Europe. Thanks to strict cost management and successful service operations the segment still delivered a positive EBITDA for the full year. Even if the equipment market is Europe is not expected to improve within the near future, we see some of our product segments that will perform better than last year. In addition, we currently work on streamlining the operations in order to improve profitability further.

Gothenburg, Sweden, in February 2013

Magnus Greko

President and CEO

For additional information, please contact
Magnus Greko
President and CEO
Phone: 46 31 748 34 00
E-mail: magnus.greko@opus.se

Peter Stenström
Investor Relations
Phone: 46 765 25 84 93
E-mail: peter.stenstrom@opus.se

Opus Group's Certified Adviser
Thenberg & Kinde Fondkommission AB
Krokslätts parkgata 4
SE-431 24 Mölndal, Sweden
Phone: 46 31 745 50 00

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