Ingen bildrubrik

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Observer AB
January June 2006
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Highlights Q2 2006

• Revenue up 11 and EBIT up 41
• Strong growth in value added, analyzed
  information
• Growth in international client segment
• Restructurings in the Nordic Baltic region, the
  UK and HQ proceed according to plan
• Positive development in the US, Canada, Germany
  and Portugal
• Excluding write-down, goodwill and
  restructuring expenses

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January June 2006
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Market

• Generally good market conditions
• Rising demand for value-added analyzed
  information
• Opportunity to gradually increase fixed revenue

• North America
• Healthy demand for integrated services
• Strong market for broadcast monitoring

• Nordic Baltic
• Strong growth in evaluation services
• Positive development in the international client
  segment

• Rest of Europe
• Positive development in Germany and Portugal
• Weak development in Monitoring in the UK and
  Ireland

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The Regions

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Changes and development

• Business model towards more integrated and
  international offering
• Digitalization of production processes
• Restructuring - estimated savings SEK 130
  million, costs SEK 120 million
• Nordic Baltic
• Functional organization
• Digitalization of the monitoring process and
  integrated offering
• Reduced number of production sites
• Rest of Europe
• Establish new sales process in UK Ireland
• Further development of the digital production
  process
• Organizational and management changes
• North America
• Successful integration of Multivision
• Synergies with US operations enhance profit and
  growth in Canada

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Organic Growth Operating Margin (rolling 12
months)
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Regions Q2 2006
Organic growth and EBIT margin by region (excl.
write-down, goodwill)
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Operating cash flow EBITA / EBIT
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Goodwill Q2 2006
223
Write-down (Q1) (M
SEK) UK 405 Ireland 41 Norway
23 Baltics 0.1 Total 469 Exchange rate
effects in Q2 -147
1101
751
287
SEK 2 273 million
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Balance Sheet June 30, 2006
Financial Assets, 130 Current receivables,
406 Other fixed assets, 276 Goodwill 2 273
Financial liabilities 936 Operating
liabilities 541 Equity 1 608
Working capital - 63 Equity / Assets ratio 52
Debt / Equity ratio 50
Amounts in SEK million
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A changing market

• Growing international sales
• Growing demand for Evaluate services
• Increasing share of revenue from portals and
  software
• Outsourcing and off-shoring
• Copy right agreements
• Partnerships, joint ventures, acquisitions

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Focus 2006

• Integrated and International offering
• Integration, knowledge sharing and best practice
• Observer Nordic UK

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Highlights Q2 2006

• Revenue up 11 and EBIT up 41
• Strong growth in value added, analyzed
  information
• Growth in international client segment
• Restructurings in the Nordic Baltic region, the
  UK and HQ proceed according to plan
• Positive development in the US, Canada, Germany
  and Portugal
• Excluding write-down, goodwill and
  restructuring expenses

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