Mycab: Interim Report: 1 January 2012 - 30 June 2012

CEO HIGHLIGHTS

As a strategic move, related to Mycabs shift towards international products and the restructuring of the Swedish operations, Mycab divested its Swedish train transfer product known as Tågtaxi to its local partner Flygtaxi Sverige AB at a price of 17,5 MSEK in second quarter.
Tågtaxi operations are limited to the Swedish market, with an annual sale at 25 MSEK. The product has been corporatized whose shares now are disposed of to Flygtaxi Sverige AB.
The proceeds from Tågtaxi are in cash by instalments during 2012 and 2013. The entire consideration constitutes capital gain and the entire amount will be recognized as revenue during 2012. In the second quarter KEUR 965 has been recorded as revenue.
The divestment of Tågtaxi is in line with Mycab Group international strategy, which is focusing on international flight transfers where the support functions are shifted to low cost countries in Asia. In this shift, Tågtaxi is deemed to benefit more with a Swedish owner, which can provide relevant local conditions for future development.


SUBSEQUENT EVENTS

Commencement of International bookings
Mycab are now receiving bookings, via Amadeus, on their newly launched international destinations for international Flight Transfers. Bookings are made by Swedish travel agencies and requested destinations, so far, is Amsterdam, Copenhagen, Helsinki, Oslo and Paris.
Procedures and technology is operational and currently there are a total of 21 destinations available for booking; AMSTERDAM, BANGKOK, BARCELONA, BERLIN, BEIJING, BRUSSELS, CHICAGO, FRANKFURT, GENEVA, HELSINKI, COPENHAGEN, LONDON, MADRID, MANCHESTER, NEW YORK, NICE, OSLO, PARIS, SHANGHAI, TOKYO, ZÜRICH.
An additional 50 destinations will be launched during fall 2012.
Marketing activities, in order to create demand and build volumes, will follow during fall 2012. The objective is to achieve a MSEK 400 sales volume via the Scandinavian travel industry.


GROUP EARNINGS

Sales
Sales, excluding Tågtaxi divestment, for the first half amounted to KEUR 4523 (859), which is predominantly emanating from Swedish operation. The revenue from the divestment of Tågtaxi is reported as financial income amounted to KEUR 965.

Gross Income
Gross Income amounted to KEUR 1032, which gives an overall gross margin at 22 %. The gross margin, for the first quarter 2012 amounted to 21 %. Comparably the gross margin for the full year 2011 amounted to 19 %.

EBITDA
EBITDA earnings for the first six months amounted to KEUR -11 (783), for the second quarter alone EBITDA amounted to KEUR 26. From 2012 the company expense all costs related to Netsys™ V5 development, which amounted to KEUR 142 in first six month.

Cost of sales, which are primarily transporters and distribution costs for the first half, amounted to KEUR 3490 (0)*. Direct costs amounted to KEUR 142 (0)* and Overheads amounted to KEUR 901 (76)*.

*Swedish operation, Netrevelation Technologies AB was acquired on the 29th day in June 2011, which explains the large differences in comparison figures.

Earnings before Tax
Earnings before tax amounted to KEUR 274. Depreciations and amortization amounted to
KEUR 548 (10), which comprises goodwill at KEUR 380 (0), intangible assets at KEUR 147 (0) and fixed assets at KEUR 21 (10).

Financial net earnings amounted to KEUR 832 (-24) resulting primarily from the divestment of Tågtaxi.


CONSOLIDATED CASH FLOW AND FINANCING

Cash flow and financing
Cash and bank balances as per 30th June 2012 amounted to KEUR 109 (35) and the Quick ratio was
64% (77%). The Group solvency as per 30th June was 29% (31%) and interest-bearing loans amounted to KEUR 1 403.

Investments amounted to KEUR 142, which are external capitalized costs for Service Provider acquisition.


OTHER GROUP INFORMATION

Number of Employees
The number of employees, at second quarter end, totaled 28.

Assessment of Risk Environment
Growth is crucial for Mycab before it can achieve its projected financial objectives, which in turn is entirely depended on how well the international rollout succeeds. Current business, (acquired by Mycab International SA in 2011), is primarily emanating from the Swedish market where the business, historically, has not met its growth objectives. However the new set up, compared to the previous operation in Sweden, is two pronged. Firstly there is an international perspective and secondly a focusing on online e-commerce. A new IT- platform, Netsys™ V5, has been developed to accommodate the new strategy but still has the pilot phase to accomplish. Although the international market for Mycab business is many times larger than the Swedish market alone, Mycab cannot guarantee that projected growth objectives are met within time frame.
Future earnings are primarily depended on the group's ability to sustain required margins despite growth. Since Mycab intends to grow with profit there is a risk that growth may implicate pressure on margins due to competition. A large part of the group costs is fixed, in a medium term perspective, and thus earnings are highly susceptible in relation margin and volume, thus Mycab cannot guarantee that projected growth with profit is met.
Related Party Disclosures
BTB DATA AB has provided a software license to Mycabtravel Pakistan Limited, inter alia required for managing local service providers. The principal shareholder in BTB DATA AB is a Director in Mycab International SA (Karin Bachstätter). The license has been provided at normal market terms.


PARENT COMPANY INFORMATION

Earnings
Parent company Net sales, for the second quarter was nil.

Cash Flow and Financing
Parent company Cash and Bank balances as per 30th June 2012 amounted to KEUR 4.

Shares
The number of shares, at the end of the second quarter, totaled 332 815 900 shares. The number of shares will increase to a total of 443 054 341 when the current share issue is closed.

Earnings per Share (EPS)
Earnings per share, over first six months, amounted to EUR 0.0008.