Corporate Governance

Presidents Statement

Continued positive development for revenues and profits

I am delighted to report positive development in both revenues and earnings. This means that we are reporting the best revenues and profits, for a first quarter, in the history of the company, and for a fifth consecutive quarter. We have also continued to improve the company’s margin throughout the quarter, compared with the same period last year, which clearly is also very pleasing to see.

Profit before tax for the quarter amounted to SEK 34.0 million, representing an increase of 60% com-pared with the corresponding period last year. Service revenues have continued to develop positively during the period and amounted to SEK 274 million, representing an increase of 8%. Service revenues relating to cloud services amounted to SEK 100 million, representing an increase of 17%. System rev-enues also developed positively and amounted to SEK 602 million, representing an increase of 29%.

As already reported, Proact acquired all of the shares of the German company Teamix GmbH in early January 2017. Teamix is a well-established company in the German market and has outstanding exper-tise in various IT technology and service fields. During the first quarter strategic work has begun to ensure that the acquired business is integrated with the Proact group, in the most efficient and effective way, to ensure the business maximizes the potential in a core Proact market.

We are constantly working to our established strategy and defined focus areas, to ensure that Proact is in the best possible position to deal with the demands in the market. The strategy is also set to meet the company’s objectives and financial targets. Among other things, this involves ensuring good cost con-trol, regular improvement and streamlining in respect of the services operation, taking the necessary measures in countries failing to meet set financial targets, and increasing the emphasis on sales and marketing within the company. This work will allow the company to implement a cost-effective, con-sistent organisation, a market-leading offering independent of suppliers, and an increased proportion of contracted revenues. The company will be continuing to focus on developing our offering in respect of datacentres (a combination of storage, servers and network) with associated services, as well as in-creasing our focus on cloud services. Areas such as security, automation and applications are also of increasing strategic importance for Proact.

This excellent trend shows that our specialist expertise and market-leading offering with regard to data-centres and cloud services are very much appreciated by both new and existing customers. We have successfully implemented a number of customer projects in the above fields during the quarter. Examples of projects implemented can be found in the section entitled “Events during the quarter”.

Proact’s objective is to act as a partner to our customers and offer high-quality services and market-leading technologies. We supply flexible services and solutions which quickly add sustainable, long-term value. Overall, it is clear to me that the initiatives implemented in various fields are continuing to pay off, making us even more competitive. Our ability to help our customers to minimise risks and reduce costs, places us in a strong position on the European market, giving us good opportunities for continued positive development in terms of both revenues and profits.

Kista, 21 April 2017

Jason Clark



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