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

Growth of 12% and operating profit up by 65%

Operating margin of 20.3% (13.7%). EBITDA margin of 24.2% (17.3%)

January – June 2014

• Net sales of SEK 124.7m (113.8)
• EBITDA of SEK 28.9m (20.1)
• Operating profit of SEK 24.1m (15.8)
• Profit before tax of SEK 24.5m (15.9)
• Cash flow from operating activities of SEK 30.5m (12.9)
• Net cash at the end of the quarter was SEK 39.4m (30.3)
• EBITDA margin of 23.2% (17.7)
• Operating margin of 19.3% (13.9)
• Earnings per share after current tax amounted to SEK 1.85 (1.20)
• Earnings per share of SEK 1.46 (1.05) before dilution and SEK 1.46 (0.97) after dilution

April – June 2014

• Net sales of SEK 62.7m (56.1)
• EBITDA of SEK 15.2m (9.7)
• Operating profit of SEK 12.7m (7.7)
• Profit before tax of SEK 12.9m (7.8)
• EBITDA margin of 24.2% (17.3)
• Operating margin of 20.3% (13.7)
• Earnings per share after current tax amounted to SEK 0.98 (0.55)
• Earnings per share of SEK 0.77 (0.53) before dilution and SEK 0.77 (0.49) after dilution

Key events during the period

• Launch of C-RUN add-on product for runtime analysis of developed code and delivery of C-RUN for ARM processors
• The new issue of 287,500 class B shares (of which 55,500 are under registration) through the exercise of
  subscription warrants provided the company with proceeds of SEK 9.8m
• Through a redemption program during Q2, SEK 62.7m has been transferred to the shareholders.