IAR Systems Group AB (publ) Interim Report Jan-Sept 2014

IAR Systems Group AB: (STO:IARB)

Growth of 18%, operating margin of 24% and cash flow of SEK 24m

January-September 2014

• Net sales of SEK 189.6m (168.7)
• EBITDA of SEK 47.3m (38.0)
• Operating profit of SEK 39.7m (31.2) The comparative figure for the prior year was positively affected by SEK 4.0m from an insurance claim.
• Profit before tax of SEK 40.1m (31.1)
• Cash flow from operating activities of SEK 54.4m (30.7)
• Net cash at the end of the quarter was SEK 57.2m (54.7)
• EBITDA margin of 24.9% (22.5)

EBITDA margin excluding effect of insurance claim in the prior year was 20.2%

• Operating margin of 20.9% (18.5)

Operating margin excluding effect of insurance claim

in the prior year was 16.1%

• Earnings per share after current tax of SEK 3.12 (2.45)
• Earnings per share of SEK 2.53 (2.02)

July-September 2014

• Net sales of SEK 64.9m (54.9)
• EBITDA of SEK 18.4m (17.9)
• Operating profit of SEK 15.6m (15.4) The comparative figure for the prior year was positively affected by SEK 4.0m from an insurance claim.
• Profit before tax of SEK 15.6m (15.2)
• Cash flow from operating activities of SEK 23.9m (17.8)
• EBITDA margin of 28.4% (32.6)

EBITDA margin excluding effect of insurance claim in the prior year was 25.3%

• Operating margin of 24.0% (28.1)
• Operating margin excluding effect of insurance claim in the prior year was 20.8%
• Earnings per share after current tax of SEK 1.26 (1.25)
• Earnings per share of SEK 1.06 (0.96)

Key events during the period

• Launch of C-RUN for ARM as an add-on product
• The new issue of 287,500 class B shares through the exercise of subscription warrants provided the company with proceeds SEK 9.8m
• Instead of dividends, SEK 62.7m has been transferred to the shareholders through a redemption procedure in the second quarter of the year

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