Net Insight

Interim / Quarterly Report • Jul 18, 2024

INTERIM REPORT JANUARY – JUNE 2024

April – June 2024

• Net sales amounted to SEK 176.1 (126.3) million, an increase of 39.5% year-onyear. In comparable currencies net sales increased by 39.6%.
• Operating earnings amounted to SEK 38.3 (9.9) million, corresponding to an operating margin of 21.8% (7.8%). Excluding currency exchange rate differences, operating earnings amounted to SEK 36.2 (11.6) million.
• The software order of SEK 30 million, which was announced during the quarter, contributed to the higher revenue and strong results. Excluding the software order, growth was 15.5% and the operating profit improved compared to the same period last year.
• Net income for the period amounted to SEK 30.4 (10.9) million, corresponding to a net margin of 17.3% (8.6%).
• Earnings per share diluted was SEK 0.09 (0.03).
• Total cash-flow was SEK -16.1 (-12.4) million. Cash-flow, excluding share-related transactions, was SEK -11.0 (-8.0) million.

Januari – June 2024

• Net sales amounted to SEK 318.6.5 (252.9) million, an increase of 26.0% year-onyear. In comparable currencies net sales increased by 25.5%.
• Operating earnings amounted to SEK 48.9 (21.9) million, corresponding to an operating margin of 15.4% (8.7%). Excluding currency exchange rate differences, operating earnings amounted to SEK 52.0 (24.3) million.
• Net income for the period amounted to SEK 44.6 (21.3) million, corresponding to a net margin of 14.0% (8.4%).
• Earnings per share diluted was SEK 0.13 (0.06).

FINANCIAL HIGHLIGHTS

• Total cash-flow was SEK -31.2 (-42.2) million. Cash-flow, excluding share-related transactions, was SEK -17.9 (-29.4) million.

Q2 in brief

• 15th consecutive quarter of growth, up by 39.5%
• Operating margins for the quarter reached 21.8%
• Historic software deal of 30 MSEK with major US customer
• Time synchronization increased our presence in new regions

	Apr-Jun			Jan-Jun			Jul 2023-	Jan-Dec
SEK millions	2024	2023	Change	2024	2023	Change	Jun 2024	2023	Change
Net sales	176.1	126.3	39.5%	318.6	252.9	26.0%	625.1	559.4	11.7%
Operating earnings	38.3	9.9	287.7%	48.9	21.9	123.7%	98.0	70.9	38.2%
Operating margin	21.8%	7.8%		15.4%	8.7%		15.7%	12.7%
EBITDA	58.8	28.5	106.2%	85.3	58.1	46.6%	169.6	142.5	19.0%
EBITDA margin	33.4%	22.6%		26.8%	23.0%		27.1%	25.5%
EBITDAC	35.1	3.2	1,009.7%	32.9	8.1	306.7%	73.9	49.1	50.5%
EBITDAC margin	19.9%	2.5%		10.3%	3.2%		11.8%	8.8%
Net Income	30.4	10.9	179.9%	44.6	21.3	109.2%	83.4	60.1	38.7%
Net margin	17.3%	8.6%		14.0%	8.4%		13.3%	10.7%
Total cash flow	-16.1	-12.4		-31.2	-42.2		-30.6	-41.7

For definitions and calculation of KPI's, see pages 15-20.

CEO Statement

Investments drive increased growth and profitability

The quarter's historically high turnover of SEK 176 million and operating profit of SEK 38 million were driven by higher order values and a larger software order. Our strong brand and deep technical expertise are increasingly cited as the reason for choosing us as a partner. We have achieved an important milestone in standardizing future secure 5G networks, and we are securing more contracts with customers who wish to integrate our Zyntai product into their network expansions.

Confidence in media products fuels growth

Strong demand for our products confirms our marketleading position. We take pride in being part of summer games, the world's largest sporting event, this summer. Our dedicated teams will be on-site to support the games and assist many of our customers attending the event. Our recognition as the obvious partner in events, where nothing can go wrong, demonstrates our strong market position.

Maintaining our leading position requires more than superior technology. Customers often start with a hardware purchase and continue with ongoing expansions, software upgrades, and continuous license and support agreements. This benefits us, as long-term profitability demands a close customer relationship. We have customers who have grown with us for over ten years, and in competitive evaluations, we generally win.

Breakthrough for our Zyntai product

Zyntai, which was commercially launched earlier this year, is generating significant interest, and we are in ongoing discussions with potential customers who want to conduct Proof of Concepts (POCs) in their own networks. Several POCs have been completed and converted into contracts, bringing us close to a doubledigit number of commercial customers. Time synchronization is a critical function in the network, and potential customers conduct thorough evaluations and tests in various stages, often resulting in longer sales cycles. The benefit is that we become an integrated part of the customer's network solution, growing with them during network expansion and upgrades, while generating ongoing license and support revenue.

The importance of standardized products is often emphasized by mobile operators, which is why it was a significant milestone when the ITU (the UN agency for the coordinated operation of global telecommunication networks and services) decided to include our technology as a new 'work item' within the ITU's standardization group for time synchronization. During the quarter, we worked on several documents, with the first ones being approved at the ITU meeting in Montreal in early July.

The initial synchronization agreement with Türk Telekom was signed in 2021. The collaboration has proceeded according to plan. However, the severe

earthquake in Turkey has impacted Türk Telekom, forcing them to restore their networks. Turkey's full 5G licenses are expected to be issued around the turn of the year. This implies that there is a risk the final delivery may occur in 2027 instead of 2026 as previously communicated.

The order book was approximately SEK 190 million at the end of the quarter.

Balance and growth

In summary, the quarter confirms our progress. Revenue amounted to SEK 176 million, marking an increase of 39.5% compared to the previous year. The software order of approximately SEK 30 million delivered in June contributed to the company's highest revenue and profit to date. The order is an upgrade and expansion of the base licenses in the customer's Nimbra network. This demonstrates the customer's strong trust in us and our products. The software order contributed to the high revenue and strong profit, but even without it, we achieved a growth of 15.5% and a results consistent with previous quarters. The agreement was executed based on our standard margins and also generates recurring license revenues.

As we leave the first half of 2024 behind us, we can note that the media business is growing steadily and profitably. Our time synchronization solution is approaching double-digit commercial customers, providing the foundation for a growth phase with long and profitable customer relationships.

Our financial goals for 2023-2027, which include an average annual organic growth exceeding 15% and an operating margin reaching 20% during the period, remain unchanged. We eagerly anticipate the fall and are prepared to work on new business and opportunities. With our strong brand and extensive expertise, we are well-equipped to take advantage of future business opportunities and secure interesting deals.

Crister Fritzson, CEO

Solna, June 18, 2024

REVENUES

April-June

Net sales in the second quarter of 2024 were SEK 176.1 (126.3) million, an increase of 39.5% year-on-year. Adjusted for currency effects, in comparable currencies, net sales increased by 39.6%.

The turnover in the second quarter is the highest in the company's history. During the quarter, Net Insight received an order from one of the company's largest media customers in the US regarding the purchase of software licenses. The order value amounted to SEK 29.8 million and was recognized as revenue in its entirety during the quarter. The basis for the deal is an upgrade and extension of basic licenses in the customer's Nimbra-net. The deal is completed with our standard margin and also includes current license income. Excluding this software order, growth in the quarter amounted to 15.5%.

Revenues from time synchronization for 5G and critical networks amounted to SEK 9.0 million in the quarter, compared to SEK 8.9 million the previous year. This year's revenue was primarily attributable to the pre-launch of the time synchronization product Zyntai, while the previous year's revenue was primarily attributable to the NRE (non-recurring engineering) fee linked to the development of this product.

January-June

Net sales in the six-month period of 2024 amounted to SEK 318.6 (252.9) million, an increase of 26.0% year-on-year. Adjusted for currency effects, in comparable currencies, net sales increased by 25.5%.

The long uninterrupted growth trend (15th consecutive quarter of growth) is a result of the investments made in product development and competence over the past few years, strengthening our offering and resulting in both new customers and expanded business with existing ones.

Revenues from time synchronization for 5G and critical networks amounted to SEK 19.1 million in the six-month period, compared to SEK 17.4 million the previous year. The orderbook for the time synchronization offer at the end of the period amounted to approximately SEK 190 million, which is in line with the previous quarter.

The company is not driven by clear seasonal variations, but there are some fluctuations between quarters driven by the size of the deals and varying product mix. to the concentration of larger deals in certain quarters.

EARNINGS

April-June

Gross profit for the second quarter amounted to SEK 114.6 (78.4) million, an increase of 46.1%, primarily driven by increased revenues and a favorable product mix with a high proportion of software. Gross profit included amortization of capitalized development expenditure of SEK -16.3 (-14.4) million. Gross margin, excluding and including, amortization of capitalized development expenditure was 74.3% (73.5%) and 65.1% (62.1%) respectively. The higher gross margin compared to the previous year is attributable to an effect of scale, as part of the costs are fixed.

Operating expenses in the second quarter amounted to SEK -78.4 (-67.6) million, an increase of 16.0% year-on-year. The increase is attributable to a strengthening of the organization (primarily in time synchronization) as well as costs related to the increased sales.

Sales and marketing expenses were SEK -47.8(-38.5) million, where the increase was primarily driven by the strengthening of the organization in time synchronization as well as investments in cloud and IP expertise. Customer and market activities have been higher during the period compared to the corresponding period last year. At the same time, the increased sales correlate with increased variable compensation. Administration expenses were SEK -17.8 (-16.2) million, where the increase is primarily attributable to strengthened organization. Development expenses were SEK -12.7 (-12.9) million and total development expenditures, i.e. before capitalizations, amounted to SEK -36.5 million (-38.2). The decrease in total development expenditures is attributable to lower expenses following the move in the first quarter of the year, where certain development in Camarillo, California, was moved to Stockholm.

Other operating income and expenses were SEK 2.1 (-1.0) million, of which currency exchange rate differences account for SEK 2.1 (-1.7) million.

300 350 400 450 500 550 600 650 700 0 30 60 90 120 150 180 210 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2024 MSEK Net sales

Net sales Net sales rolling 4 quarters

Target follow-up

Financial targets 2023-2027:

• An organic average annual growth of at least 15% • An operating margin (EBIT%) that within the period will reach 20%

Operating earnings amounted to SEK 38.3 (9.9) million, corresponding to an operating margin of 21.8% (7.8%). Excluding exchange rate differences of SEK 2.1 (-1.7) million, operating earnings were SEK 36.2 (11.6) million, corresponding to an operation margin of 20.6% (9.2%). For more information, see the table "Material profit and loss items" on page 20.

EBITDA and EBITDAC (EBITDA including reversal of capitalization of development expenditures) amounted to SEK 58.8 (28.5) million and SEK 35.1 (3.2) million, respectively, corresponding to an EBITDA margin of 33.4% (22.6%) and an EBITDAC margin of 19.9% (2.5%). The increased sales have had a positive effect on EBITDAC, while increased investments in time synchronization development and sales organization, combined with costs related to the increased sales, have had a negative effect on EBITDAC. The capitalization of development expenditures decreased by SEK 1.7 million from SEK -25.4 million to SEK -23.7 million compared to the corresponding period last year. The reported operating profit increased by SEK 28.5 million from SEK 9.9 million in the second quarter of 2023 to SEK 38.3 million, the highest in history of the company. Although the abovementioned software order of SEK 30 million has had a major impact on profitability in the quarter, as it both has a high margin and brings economies of scale, profitability excluding this order has improved compared to the previous year.

In the second quarter, net financial items amounted to SEK 0.3 (4.4) million, of which foreign exchange rate differences of SEK -2.9 (2.6) million and net interest income of SEK 2.1 (1.8) million.

Profit before tax was SEK 38.6 (14.3) million, and net income was SEK 30.4 (10.9) million, corresponding to a net margin of 17.3% (8.6%).

January-June

Gross profit for the first six-month period amounted to SEK 200.1 (153.2) million, an increase of 30.6%, primarily driven by increased revenues. Gross profit included amortization of capitalized development expenditure of SEK -28.1 (-27.8) million. Gross margin, excluding and including, amortization of capitalized development expenditure was 71.6% (71.6%) and 62.8% (60.6%) respectively. The gross margin is affected by product mix and economies of scale, as part of the costs are fixed. During the first quarter of 2024, several new customers made their initial investments in infrastructure, i.e. primarily hardware, which resulted in a lower gross margin. During the second quarter, a customer made a large software investment to be used on Net Insight hardware delivered in previous quarters, see above, which contributed to higher gross margin. See also the description of the business model in the Annual Report for 2023 page 21.

Operating expenses in the six-month period amounted to SEK -150.6 (-129.4) million, an increase of 16.4% year-on-year. The increase is attributable to a strengthening of the organization (primarily in time synchronization) as well as costs related to the increased sales.

Sales and marketing expenses were SEK -89.2 (-74.0) million, where the increase was primarily driven by the strengthening of the organization for time synchronization as well as investments in cloud and IP expertise. The high sales has also led to increased variable remuneration at the same time as customer and market activities have been higher this year than in the previous year. Administration expenses were SEK -35.2 (-31.3) million. The increase is mainly driven by personnel-related factors, such as strengthening of the organization and revaluations of certain personnel-related provisions, as well as partly by certain operational improvement and efficiency projects. Development expenses were SEK -26.2 (-24.1) million. The first quarter was affected by restructuring costs affecting comparability of SEK -2.5 million relating to move of certain development from Camarillo in California to Stockholm, which then had a positive effect on the second quarter. Total development expenditures, i.e. before capitalizations, amounted to SEK-78.6 (-74.2) million, where the increase is attributable to component purchases during the first quarter.

Other operating income and expenses were SEK -0.6 (-2.0) million, of which currency exchange rate differences account for SEK -0.6 (-3.0) million.

Operating earnings amounted to SEK 48.9 (21.9) million, corresponding to an operating margin of 15.4% (8.7%). Excluding items affecting comparability of SEK -2.5 (0.6) million and exchange rate differences of SEK -0.6 (-3.0) million, operating earnings were SEK 52.0 (24.3) million, corresponding to an operation margin of 16.3% (9.6%). For more information, see the table "Material profit and loss items" on page 20.

EBITDA and EBITDAC (EBITDA including reversal of capitalization of development expenditures) amounted to SEK 85.3 (58.1) million and SEK 32.9 (8.1) million, respectively, corresponding to an EBITDA margin of 26.8% (23.0%) and an EBITDAC margin of 10.3% (3.2%). The increased sales have had a positive effect on EBITDAC, while increased

investments in time synchronization development and sales organization, combined with costs related to the increased sales, have had a negative effect on EBITDAC. The capitalization of development expenditures increased by SEK -2.3 million from SEK -50.1 million to SEK -52.4 million compared to the corresponding period last year. The reported operating profit increased by SEK 27.1 million from SEK 21.9 million in the first six-month period of 2023 to SEK 48.9 million. Although the above-mentioned software order of SEK 30 million has had a major impact on profitability in the quarter, as it both has a high margin and brings economies of scale, profitability excluding this order has improved compared to the previous year.

In the first six-month period, net financial items amounted to SEK 7.7 (5.9) million, of which foreign exchange rate differences of SEK 2.4 (2.6) million and net interest income of SEK 4.2 (3.3) million.

Profit before tax amounted to SEK 56.6 (27.7) million, and net income was SEK 44.6 (21.3) million, corresponding to a net margin of 14.0% (8.4%).

	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
Key Ratios	2024	2023	2024	2023	Jun 2024	2023
Net sales, SEK millions	176.1	126.3	318.6	252.9	625.1	559.4
Net sales YoY, change in %	39.5%	14.7%	26.0%	15.0%	23.0%	17.7%
Gross earnings	114.6	78.4	200.1	153.2	388.7	341.8
Gross margin	65.1%	62.1%	62.8%	60.6%	62.2%	61.1%
Operating earnings	38.3	9.9	48.9	21.9	98.0	70.9
Operating margin	21.8%	7.8%	15.4%	8.7%	15.7%	12.7%
EBITDA	58.8	28.5	85.3	58.1	169.6	142.5
EBITDA margin	33.4%	22.6%	26.8%	23.0%	27.1%	25.5%
EBITDAC	35.1	3.2	32.9	8.1	73.9	49.1
EBITDAC margin	19.9%	2.5%	10.3%	3.2%	11.8%	8.8%

INVESTMENTS

The investments in the second quarter were SEK 24.6 (25.6) million, of which SEK 23.7 (25.4) million were related to capitalization of expenditure for development. During the six-month period, the investments were SEK 54.1 (51.7) million, of which SEK 52.4 (50.1) million were related to capitalization of expenditure for development.

Depreciation and amortization in the second quarter amounted to SEK -20.5 (-18.7) million, of which SEK -16.3 (-14.4) million related to amortization of capitalized expenditure for development. During the six-month period, depreciation and amortization amounted to SEK -36.3 (-36.3) million, of which SEK -28.1 (-27.8) million related to amortization of capitalized expenditure for development

Changes in capitalized development expenditure and amortization are driven by the level of activity in development projects in combination with the timing of launches of fully developed products.

Net value of capitalized expenditure for development was SEK 260.8 million at end of the period, against SEK 236.5 million as of December 31, 2023.

CASH FLOW AND FINANCIAL POSITION

Cash flow from operating activities in the second quarter amounted to SEK 16.3 (20.1) million. The positive impact the improved earnings have on the cash flow has been counteracted by the increased working capital tie-up that the increased sales led to with the high invoicing at the end of the quarter.

The total cash flow for the second quarter amounted to SEK -16.1 (-12.4). Excluding the cash impact from share-related transactions, the cash flow for the second quarter was SEK -11.0 (-8.0) million. For more information, see pages 12 and 20.

Cash flow from operating activities in the first six-month period amounted to SEK 41.8 (27.3) million. The improvement is attributable to the improved earnings. The increased working capital tie-up that the increased sales led to has been partially offset by reduced tie-up in inventory and liabilities. As the company has been profitable for some time, the tax loss carryforwards accumulated during previous years has been utilized, resulting in income tax payments affecting the cash flow by SEK -12.5 million compared to the previous year.

The total cash flow for the first six-month period amounted to SEK -31.2 (-42.2). Excluding the cash impact from share-related transactions, the cash flow was SEK -17.9 (-29.4) million. For more information, see pages 12 and 20.

Cash and cash equivalents at the end of the period was SEK 235.6 million, compared to SEK 266.4 million as of 31 December 2023.

Equity at the end of the period was SEK 654.1 million, compared to SEK 622.2 million as of 31 December 2023. The equity/assets ratio was 74.0%, compared to 74.2% as of 31 December 2023. The increase in equity falls short of the result primarily driven by the buyback of own shares. For additional information, see the section "Contributed equity" on page 12.

EMPLOYEES

The average number of employees and consultants at Net Insight during the second quarter and the six-month period was 200 (191) and 199 (185), respectively, of which 170 (154) and 168 (152), respectively, in the Parent Company Net Insight AB (publ.). The increase is primarily attributable to the investment in time synchronization organization.

PARENT COMPANY

Net sales for the Parent Company amounted to SEK 176.1 (126.3) million in the second quarter, and net income to SEK 29.7 (10.3) million. Intra-group sales were SEK 0.0 (0.0) million during the quarter, and intra-group purchases were SEK -20.4 (-21.1) million.

Net sales for the Parent Company amounted to SEK 318.6 (252.9) million in the first sixmonth period, and net income to SEK 42.8 (20.0) million. In the first six-month period, intragroup sales were SEK 0.0 (0.0) million, and intra-group purchases were SEK -47.2 (-40.9) million.

Development of the Parent Company for the year and its financial position essentially followed hat of the Group as presented above.

RISK AND SENSITIVITY ANALYSIS

Net Insight's operations and results of operations are affected by a number of external and internal factors. There is a continuous process to identify risks, and to assess how each such risk should be mitigated.

The primary risks to which the company is exposed include market-related risks (including but not limited to competition, technological developments, and political risks), operational risks (including product liability, intellectual property, disputes, customer dependence, and contractual risks), as well as financial and sustainability-related risks.

The component shortage that arose in connection with the pandemic was partly mitigated during 2023. However, the war in Ukraine and the ongoing Israel-Palestine conflict have resulted in longer lead times, increased shipping costs and generally increased uncertainty. The company's direct exposure to these markets is very limited, and compliance with the current sanctions is therefore deemed not to have any material impact on the company's operations, assets or earnings. However, it is currently difficult to assess the potential future impact of the conflicts on the availability and prices of components.

Apart from this, there are no significant risks and uncertainties beyond those described in the 2023 annual report.

The risks and uncertainties are essentially the same for the Parent Company and the Group as a whole.

For a comprehensive review of the company's risk and sensitivity analysis, and its risk management process, see pages 54-56, 58-60 and 76-77 of the Annual Report for 2023.

CONSOLIDATED INCOME STATEMENT, IN SUMMARY

	Apr-Jun Jan-Jun		Jul 2023-	Jan-Dec
SEK thousands	2024	2023	2024	2023	Jun 2024	2023
Net sales	176,141	126,279	318,597	252,908	625,057	559,368
Cost of sales	-61,550	-47,862	-118,476	-99,692	-236,363	-217,579
Gross earnings	114,591	78,417	200,121	153,216	388,694	341,789
Sales and marketing expenses	-47,814	-38,467	-89,158	-74,000	-167,264	-152,106
Administration expenses	-17,811	-16,229	-35,186	-31,266	-66,351	-62,431
Development expenses	-12,746	-12,865	-26,225	-24,087	-53,953	-51,815
Other operating income and expenses	2,123	-963	-605	-1,984	-3,166	-4,545
Operating earnings	38,343	9,891	48,947	21,878	97,961	70,892
Net financial items	283	4,401	7,663	5,854	8,295	6,486
Profit before tax	38,626	14,292	56,610	27,732	106,256	77,378
Tax	-8,197	-3,420	-12,017	-6,415	-22,878	-17,276
Net Income Net income for the period attributable to the	30,429	10,871	44,593	21,316	83,379	60,102
shareholders of the parent company	30,429	10,871	44,593	21,316	83,379	60,102

Earnings per share, based on net income attributable to the parent company's shareholders	Apr-Jun			Jan-Jun	Jul 2023-	Jan-Dec
during the period	2024	2023	2024	2023	Jun 2024	2023
Earnings per share
-Basic, SEK	0.09	0.03	0.13	0.06	0.24	0.17
-Diluted, SEK	0.09	0.03	0.13	0.06	0.24	0.17
Average number of outstanding shares in thousands
-Basic	348,008	355,662	347,974	356,002	349,614	353,526
-Diluted	349,058	359,540	349,729	360,191	351,435	356,569

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEK thousands	2024	2023	2024	2023	Jun 2024	2023
Net income	30,429	10,871	44,593	21,316	83,379	60,102
Other comprehensive income
Translation differences	-69	512	685	449	-258	-494
Total other comprehensive income, after tax	-69	512	685	449	-258	-494
Total other comprehensive income for the period	30,360	11,383	45,278	21,765	83,121	59,608
attributable to the shareholders of the parent	30,360	11,383	45,278	21,765	83,121	59,608

CONSOLIDATED BALANCE SHEET, IN SUMMARY

SEK thousands	30 Jun 2024	31 Mar 2024	31 Dec 2023
ASSETS
Non-current assets
Capitalized expenditure for development	260,765	253,391	236,461
Goodwill	38,751	38,751	38,751
Other intangible assets	769	911	1,057
Right-of-use assets	19,677	22,309	24,844
Equipment	11,801	12,348	12,687
Deferred tax asset	2,675	2,897	2,576
Deposits	5,132	5,134	5,123
Total non-current assets	339,570	335,741	321,499
Current assets
Inventories	71,689	80,772	88,638
Accounts receivable	201,683	147,941	139,707
Other receivables	35,741	37,621	22,150
Cash and cash equivalents	235,602	251,651	266,404
Total current assets	544,715	517,985	516,899
TOTAL ASSETS	884,285	853,726	838,398
EQUITY AND LIABILITIES
Equity attributable to parent company's shareholders
Share capital	14,362	14,362	14,362
Other paid-in capital	1,200,443	1,200,443	1,200,443
Translation reserve	1,695	1,764	1,010
Accumulated deficit	-562,386	-587,725	-593,656
Total shareholders' equity	654,114	628,844	622,159
Non-current liabilities
Lease liabilities	6,865	9,557	12,185
Other liabilities	47,409	52,889	51,582
Total non-current liabilities	54,274	62,446	63,767
Current liabilities
Lease liabilities	11,994	12,077	12,105
Accounts payable	36,262	35,905	38,130
Other liabilities	127,641	114,454	102,237
Total current liabilities	175,897	162,436	152,472
TOTAL EQUITY AND LIABILITIES	884,285	853,726	838,398

CHANGES IN CONSOLIDATED EQUITY, IN SUMMARY

	Attributable to parent company's shareholders
SEK thousands	Share capital	Other paid-in capital	Translation reserve	Accumulated deficit	Total shareholders' equity
January 1, 2023	14,750	1,192,727	1,504	-603,892	605,089
Exercised warrants	4	304	-	-	308
Repurchase of own shares	-	-	-	-13,106	-13,106
Total comprehensive income	-	-	449	21,316	21,765
June 30, 2023	14,754	1,193,031	1,953	-595,682	614,056
January 1, 2024	14,362	1,200,443	1,010	-593,656	622,159
Repurchase of own shares	-	-	-	-13,322	-13,322
Total comprehensive income	-	-	685	44,593	45,278
June 30, 2024	14,362	1,200,443	1,695	-562,386	654,114

CONSOLIDATED STATEMENT OF CASH FLOWS

	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEK thousands	2024	2023	2024	2023	Jun 2024	2023
Operating activities
Operating earnings	38,343	9,891	48,947	21,878	97,961	70,892
Depreciation, amortization & impairment	20,486	18,653	36,309	36,267	71,667	71,625
Other items not affecting liquidity	1,837	2,092	1,571	2,812	9,642	10,883
Sub-total	60,666	30,636	86,827	60,957	179,270	153,400
Interest received	2,352	2,041	4,611	3,747	9,072	8,208
Interest paid	-204	-253	-427	-497	-890	-960
Other financial income and expenses	-1,865	2,613	3,479	2,604	113	-762
Income tax paid	-4,520	-1,922	-14,404	-1,933	-22,179	-9,708
Cash flow from operating activities before changes in working capital	56,429	33,115	80,086	64,878	165,386	150,178
Changes in working capital
Increase-/decrease+ in inventories	-1,975	-7,951	5,375	-15,835	7,526	-13,684
Increase-/decrease+ in receivables	-44,859	-11,728	-66,101	-16,966	-54,125	-4,990
Increase+/decrease- in liabilities	6,740	6,631	22,420	-4,756	2,992	-24,184
Total changes in working capital	-40,094	-13,048	-38,306	-37,557	-43,607	-42,858
Cash flow from operating activities	16,335	20,067	41,780	27,321	121,779	107,320
Investment activities
Capitalized expenditure	-23,718	-25,385	-52,390	-50,063	-95,729	-93,402
Investment in intangible assets	-3	-	-3	-	-68	-65
Investment in tangible assets	-835	-184	-1,742	-1,659	-2,680	-2,597
Increase-/decrease+ in financial assets, net	-	-	-	-	-227	-227
Cash flow from investment activities	-24,556	-25,569	-54,135	-51,722	-98,704	-96,291
Financing activities
Amortization leasing	-2,764	-2,532	-5,503	-5,045	-10,635	-10,177
Exercised warrants	-	308	-	308	7,530	7,838
Repurchase of own shares	-5,090	-4,642	-13,322	-13,106	-50,592	-50,376
Cash flow from financing activities	-7,854	-6,866	-18,825	-17,843	-53,697	-52,715
Net change in cash and cash equivalents	-16,075	-12,368	-31,180	-42,244	-30,622	-41,686
Exchange differences in cash and cash equivalents	26	168	378	176	-55	-257
Cash and cash equivalents at the beginning of the period	251,651	278,479	266,404	308,347	266,279	308,347
Cash and cash equivalents at the end of the period	235,602	266,279	235,602	266,279	235,602	266,404

DISAGGREGATION OF REVENUE

	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEK thousands	2024	2023	2024	2023	Jun 2024	2023
Net sales by product group
Hardware	51,532	50,319	108,552	104,169	237,832	233,449
Software licenses	85,141	33,014	132,136	65,940	232,502	166,306
Support and Services*	39,468	42,946	77,909	82,799	154,723	159,613
Total	176,141	126,279	318,597	252,908	625,057	559,368
Net sales by region
EMEA	77,365	69,942	151,610	132,784	332,789	313,963
AM	84,256	35,025	113,337	67,991	203,860	158,514
APAC	14,520	21,311	53,650	52,132	88,408	86,890
Total	176,141	126,279	318,597	252,908	625,057	559,368
Timing of revenue recognition
Products and services transferred at a point in time	135,989	80,112	235,577	164,015	456,355	384,793
Products and services transferred over time*	40,152	46,167	83,020	88,893	168,702	174,575
Total	176,141	126,279	318,597	252,908	625,057	559,368

*) Of which NRE fee; SEK 0.0 (7.1) million Apr-Jun; SEK 0.0 (14.1) million Jan-Jun; SEK 9.3 million Jul 2023-Jun 2024; SEK 23.4 million Jan-Dec 2023.

FINANCIAL ASSETS AND LIABILITIES

Group's financial instruments by category - Assets	Jun 30, 2024			31 Dec 2023
SEK thousands	Value-tier	Measured at amortized cost	Measured at fair value through profit or loss	Value-tier	Measured at amortized cost	Measured at fair value through profit or loss
Assets in Balance Sheet
Derivative instruments	2		-	2		682
Accounts receivable and other receivables, excluding
non-financial assets		208,251			148,828
Cash and cash equivalents		235,602			266,404
Total		443,853	-		415,232	682

Group's financial instruments by category -

Liabilities		Jun 30, 2024		31 Dec 2023
SEK thousands	Value-tier	Measured at amortized cost	Measured at fair value through profit or loss	Value-tier	Measured at amortized cost	Measured at fair value through profit or loss
Liabilities in Balance Sheet
Derivative instruments	2		926	2		-
Accounts payable and other liabilities, excluding non financial liabilities		43,303			45,974
Lease liabilities		18,859			24,290
Total		62,162	926		70,264	-

The carrying value of account receivables, other receivables, cash and cash equivalents, account payables and other liabilities constitutes a reasonable approximation of fair value.

Financial instruments in tier 2

The fair value of derivative instruments is determined using exchange rates of currency forwards on the reporting date.

PARENT COMPANY INCOME STATEMENT, IN SUMMARY

	Apr-Jun			Jan-Jun	Jul 2023-	Jan-Dec
SEK thousands	2024	2023	2024	2023	Jun 2024	2023
Net sales	176,141	126,279	318,597	252,908	625,057	559,368
Cost of sales	-61,672	-47,784	-118,727	-99,575	-236,471	-217,319
Gross earnings	114,469	78,495	199,870	153,333	388,586	342,049
Sales and marketing expenses	-48,001	-39,145	-90,467	-75,445	-171,189	-156,167
Administration expenses	-17,766	-16,155	-34,950	-31,174	-65,912	-62,136
Development expenses	-12,838	-13,193	-26,840	-24,891	-55,300	-53,351
Other income expenses	1,448	-1,064	-1,280	-2,085	-3,958	-4,763
Operating earnings	37,312	8,937	46,333	19,738	92,227	65,632
Net financial items	466	4,645	8,053	6,362	9,125	7,434
Profit before tax	37,777	13,583	54,385	26,100	101,351	73,066
Tax	-8,103	-3,330	-11,552	-6,092	-21,576	-16,116
Net income	29,675	10,253	42,834	20,008	79,776	56,950

PARENT COMPANY BALANCE SHEET, IN SUMMARY

SEK thousands	30 Jun 2024	31 Dec 2023	30 Jun 2023
ASSETS
Non-current assets
Capitalized expenditure for development	260,765	236,461	220,417
Other intangible assets	769	1,057	1,360
Equipment	10,892	11,438	13,435
Participations in group companies	3,173	3,173	3,173
Deferred tax asset	1,462	1,044	899
Deposits	4,855	4,855	4,628
Total non-current assets	281,916	258,028	243,912
Current assets
Inventories	71,689	88,638	98,527
Accounts receivable	202,732	140,467	142,127
Receivables from group companies	346	346	346
Other receivables	38,461	24,541	35,188
Cash and cash equivalents	227,865	258,014	261,372
Total current assets	541,093	512,006	537,560
TOTAL ASSETS	823,009	770,034	781,472
EQUITY AND LIABILITIES
Equity
Restricted equity	352,120	327,488	307,296
Non-restricted equity	254,364	249,485	262,474
Total equity	606,484	576,973	569,770
Non-current liabilities
Other liabilities	45,816	50,269	52,304
Total non-current liabilities	45,816	50,269	52,304
Current liabilities
Accounts payable	36,101	38,066	23,658
Liabilities to group companies	13,632	8,763	11,129
Other liabilities	120,976	95,963	124,611
Total current liabilities	170,709	142,792	159,398
TOTAL EQUITY AND LIABILITIES	823,009	770,034	781,472

ACCOUNTING POLICIES

This Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable regulations of the Swedish Annual Accounts Act. The Interim Report of the parent company complies with chapter 9 of the Swedish Annual Accounts Act, Interim Financial Reporting, and RFR 2 Accounting for Legal Entities.

Disclosures in accordance with IAS 34 are presented in the interim financial statements and the associated notes as well as elsewhere in the interim financial report. There are no new or amended International Financial Reporting Standards (IFRS) in 2024 that have had a material impact on the Company's financial reporting.

The Group and the Parent Company have applied the same accounting principles and calculation methods as in the latest annual report. A description of these accounting principles can be found in the Annual Report for 2023.

The preparation of the Interim Report requires management to make assessments and make assumptions that affect the company's earnings and position as well as the information provided. Estimates and assessments are continuously evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. For a description of estimates and assumptions, please refer to the Annual Report for 2023.

Figures in parentheses in this report refer to comparison with the corresponding period or date in the previous year, unless stated otherwise. Discrepancies due to rounding may occur in this report.

Tax

The group reported tax of total SEK -8.2 (-3.4) million for the period April-June 2024, corresponding to an effective tax rate of 21.2 (23.9) percent. The group reported tax of total SEK -12.1 (-6.4) million for the period January–June 2024, corresponding to an effective tax rate of 21.2 (23.1) percent. The effective tax rate is affected by tax adjustments and the relative effects of foreign tax rates.

Contributed equity

The share buyback program, decided by the Board with the support of the mandate from the 2023 AGM, was active from July 2023 to

February 2024. Within the program, the Parent company repurchased a total of 10,693,000 of its own Class B shares on Nasdaq Stockholm for SEK 50.1 million, including transaction costs, of which 1,425,000 shares were acquired for SEK 8.2 million during the period January-February 2024.

The 2024 AGM resolved to authorize the board of directors to resolve to repurchase, on one or several occasions until the next AGM, as many own shares as may be purchased without the company's holding at any time exceeding ten per cent of the total number of shares in the company. Further, the AGM resolved to authorize the board of directors to resolve on one or several occasions until the next annual general meeting, to transfer (sell) own shares.

At the Board meeting in May 2024, the board of Directors of Net Insight AB decided to utilize the repurchase mandate given at the AGM in 2024. The repurchase program commenced on June 3, 2024, and will last until the next AGM and will amount to maximum SEK 50 million.

During June 2024, the parent company repurchased 940,000 of its own B shares on Nasdaq Stockholm for SEK 5.1 million, including transaction costs.

At the end of the period, the Parent Company held a total of 11,735,000 of its own Class B shares, at an average acquisition cost of SEK 4.76 per share with a par value of SEK 0.04 per share. The shares are held as treasury/own shares. The parent company has the right to reissue these shares at a later date.

The 2024 AGM resolved that the company's share capital shall be reduced by SEK 431,800 for allocation to unrestricted equity through cancellation of 10,795,000 own B shares held by the company. The matter is pending with the Swedish Companies Registration Office.

The Company has two active warrant programs (LTI 2022 in series 1 and 2) with a total of 1,805,000 warrants. When calculating earnings per share, a dilution effect arises when the average price for the period exceeds the exercise price for the warrants. For more information about the programs and the accounting principles, see Note 7 on pages 84-85 in the 2023 Annual Report.

All shares issued by the parent company were fully paid.

	30 Jun, 2024			31 Dec, 2023
The division of shares	A-shares	B-shares	Total	A-shares	B-shares	Total
Outstanding shares	1,000,000	346,303,009	347,303,009	1,000,000	348,668,009	349,668,009
Repurchased own shares	-	11,735,000	11,735,000	-	9,370,000	9,370,000
Issued shares	1,000,000	358,038,009	359,038,009	1,000,000	358,038,009	359,038,009

TRANSACTIONS WITH RELATED PARTIES

The Parent Company engaged a company related to a member of the management for consulting services. Fees incurred during the year amounted to SEK 0.1 (0.5) million.

AUDITORS' REVIEW

This Report has not been reviewed by the company's auditors.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

No significant events occurred after the end of the reporting period.

THIS IS NET INSIGHT

Business concept and model

Net Insight is defining new ways to deliver media. Net Insight is driving the transformation of video networks with open IP, virtualized and cloud solutions that enable our customers to simply and costeffectively create live experiences.

With the product area Media Networks, Net Insight is opening up new routes for customers to produce and deliver content to viewers anywhere. Revenues are generated through sales of hardware and software solutions and services.

The product area time synchronization enables cost-effective, more secure and faster roll-out of 5G networks or other critical networks.

Strategy

Net Insight wants to set the benchmark for media transport and help broadcasters, production companies, service providers and enterprises to transform their media businesses – enabling them to benefit from new software defined, virtual and distributed media workflows, without discarding their existing hardware investments. Net Insight wants to empower customers to work smarter through remote/distributed production and flexible networks.

Net Insight is technology agnostic and has built the market's most open and cloud-ready video centric media delivery platform, allowing customers to deliver content on any network, their way.

The main strategic objective is to accelerate growth, in both existing and closely related market and customer segments. This will be achieved through a combination of leveraging our unique portfolio and our industry expertise, strengthened solutions competitiveness, and improved internal execution.

Value creators

The solutions are deployed by the world's leading media brands to keep their mission-critical media networks running smoothly. New technology is enabling these players to adopt new, more costefficient and flexible ways to produce and deliver content. Net Insight can play an important role in supporting our customers making this gradual transition.

Net Insight benefits from underlying market trends like the general increase in video traffic, live streaming, and file-based transfers. Other trends supporting the company's growth prospects include the broader coverage of live events, move towards remote production and increased use of Internet and cloud for media production and transport.

Reporting dates

Interim report January – September November 7, 2024 Interim report January – December February 19, 2025

For more information, please contact

Phone: +46 (0)8-685 04 00 Box 1200, 171 23 Solna, Sweden Email: crister.fritzson@netinsight.net Phone: +46 (0)8 – 685 04 00

Annika Muskantor, Interim CFO, Net Insight AB (publ) www.netinsight.net Phone: +46 (0)8-685 04 00 Email: investor.relations@netinsight.net

Crister Fritzson, CEO, Net Insight AB (publ) Net Insight AB (publ), corp.id.no. 556533-4397

This information is information that Net Insight AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 7:30 am CEST on July 18, 2024.

CERTIFICATION BY THE BOARD OF DIRECTORS AND CEO

The Board of Directors and the CEO certify that the Interim report for the period January – June 2024 gives a true and fair overview of the Parent Company Net Insight AB (publ) and the Group's operations, their financial position and results of operations, and describes significant risks and uncertainties facing the Parent Company and other companies in the Group.

Solna, July 18, 2024

Anna Söderblom Chairman

Jan Barchan Board member Cecilia de Leeuw Board member

Karl Thedéen Board member Torbjörn Wingårdh Board member

Crister Fritzson CEO

This interim report has been prepared in Swedish and translated into English. In the event of any discrepancies between the Swedish interim report and the English translation the former shall have precedence.

FINANCIAL INFORMATION

	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEK millions (if not defined differently)	2024	2023	2024	2023	Jun 2024	2023
Earnings
Net sales	176.1	126.3	318.6	252.9	625.1	559.4
Gross earnings	114.6	78.4	200.1	153.2	388.7	341.8
Operating expenses	78.4	67.6	150.6	129.4	287.6	266.4
Total development expenditure	36.5	38.2	78.6	74.2	149.7	145.2
EBITDA	58.8	28.5	85.3	58.1	169.6	142.5
EBITDAC	35.1	3.2	32.9	8.1	73.9	49.1
Operating earnings	38.3	9.9	48.9	21.9	98.0	70.9
Profit before tax	38.6	14.3	56.6	27.7	106.3	77.4
Net income	30.4	10.9	44.6	21.3	83.4	60.1
Balance sheet and cash flow
Cash and cash equivalents	235.6	266.3	235.6	266.3	235.6	266.4
Working capital	130.6	119.5	123.8	111.2	123.0	113.6
Total cash flow	-16.1	-12.4	-31.2	-42.2	-30.6	-41.7
The share
Dividend per share, SEK	-	-	-	-	-	-
Earnings per share, basic, SEK	0.09	0.03	0.13	0.06	0.24	0.17
Earnings per share, diluted, SEK	0.09	0.03	0.13	0.06	0.24	0.17
Cash flow per share, basic, SEK	-0.05	-0.03	-0.09	-0.12	-0.09	-0.12
Cash flow per share, diluted, SEK	-0.05	-0.03	-0.09	-0.12	-0.09	-0.12
Equity per share basic , SEK	1.88	1.73	1.88	1.72	1.88	1.76
Equity per share diluted, SEK Average number of outstanding shares basic,	1.87	1.71	1.87	1.70	1.87	1.74
thousands Average number of outstanding shares diluted,	348,008	355,662	347,974	356,002	349,614	353,526
thousands Number of outstanding shares at the end of the	349,058	359,540	349,729	360,191	351,435	356,569
period, basic, thousands Number of outstanding shares at the end of the	347,303	355,006	347,303	355,006	347,303	349,668
period, diluted, thousands	349,058	357,951	349,058	357,951	349,058	351,423
Share price at end of period, SEK	6.27	4.82	6.27	4.82	6.27	5.20
Employees and consultants
Average number of employees and consultants	200	191	199	185	197	191
KPI
Net sales YoY, change in %	39.5%	14.7%	26.0%	15.0%	23.0%	17.7%
Gross margin	65.1%	62.1%	62.8%	60.6%	62.2%	61.1%
Total development expenditure/Net sales	20.7%	30.3%	24.7%	29.3%	23.9%	26.0%
Operating margin	21.8%	7.8%	15.4%	8.7%	15.7%	12.7%
EBITDA margin	33.4%	22.6%	26.8%	23.0%	27.1%	25.5%
EBITDAC margin	19.9%	2.5%	10.3%	3.2%	11.8%	8.8%
Net margin	17.3%	8.6%	14.0%	8.4%	13.3%	10.7%
Return on capital employed	11.6%	8.6%	11.7%	8.6%	11.8%	8.0%
Equity/asset ratio	74.0%	72.2%	74.0%	72.2%	74.0%	74.2%
Return on equity	13.3%	9.0%	13.3%	9.0%	13.3%	9.8%

ALTERNATIVE PERFORMANCE MEASURES AND OTHER DEFINITIONS

Non-IFRS financial measures are presented to enhance investors and management possibility to evaluate the ongoing operating results, to aid in forecasting future periods and to facilitate meaningful comparison of result between periods. The APMs in this report may differ from similar-titled measures used by other companies. The section has also been supplemented with some other definitions.

Any key figures in text, diagrams or tables that include periods earlier than 1 April 2021, refer to continued operations, i.e. excluding the effect from divested operations. For more information, see interim reports and annual report for 2022.

Calculation of performance measures not included in IFRS framework, and some other definitions.

Performance measures	Various types of performance measures and margin measures as a percentage of sales.
Non-IFRS performance measures	Description	Reason for use of the measure
Gross margin	Gross earnings as a percentage of net sales.	The gross margin is of major importance, showing
Gross margin excl. amortization of capitalized development	Gross earnings excl. amortization of capitalized development as a percentage of net sales.	the margin for covering the operating expenses., supplemented by the margin to cover the operating expenses as well as the cost of amortization of capitalized development expenditures.
Operating expenses	Sales and marketing expenses, administration expenses and development expenses.	Shows the company's total operating expenses. Putting them in relation to net sales shows the
Operating expenses/net sales	Operating expenses as a percentage of net sales.	company's cost efficiency.
Operating earnings (EBIT)	Calculated as operating earnings before financial items and tax.	Operating earnings provides an overall picture of earnings generated in the operating activities.
Operating margin (EBIT%)	Operating earnings as a percentage of net sales.	The operating margin is a key measure together with sales growth and capital employed for monitoring value creation.
Net sales YoY, change in %	The relation between net sales for the period and the corresponding sales for the comparative period in previous year.	The sales growth is a key measure together with operating margin and capital employed for monitoring value creation.
Change in Net sales in comparable currencies	The relation between the net sales for the period, recalculated using the foreign currency exchange rates from the comparative period, and the corresponding sales for the comparative period in previous year. Only sales from business combinations that has been part of the Group for the whole comparative period are recalculated.	This measure is of major importance for management in its monitoring of underlying sales growth driven by changes in volume, price and product mix for comparable exchange rates between different periods.
Net margin	Net Income as a percentage of net sales.	The net margin shows the remaining share of net sales after all the company's costs have been deducted.
Total development (R&D) expenditure	Development expenses and capitalized expenditures for development.	The measure is a good complement to development expenses, as it shows the company's
Capitalization rate	Capitalized development expenditures as a percentage of total development expenditures.	total expenditure in development. The development expenditures effect on income,
Total development (R&D) expenditure/net sales	Total development expenditure as percentage of net sales.	financial position, and presentation in the statement of cashflow is affected by the periods level of capitalized development expenditures.
EBITDA	Operating earnings before depreciation and amortization.	Complementing EBITDA with EBITDAC, where capitalized development expenditures are
EBITDAC	Operating earnings before depreciation and amortization and capitalization of development expenditure. The performance measure EBITDA-2 has, in 2023, changed its conceptual name to EBITDAC, the definition is unchanged.	reversed, provides a good complement to operating earnings and margin as it, simplified, shows the earnings-generated cash flow in the operation and it shows operating earnings without influence of variations in the level of capitalized development expenditures in the company's
EBITDA & EBITAC margin	EBITDA & EBITDAC as a percentage of net sales.	development projects.
Regions	Definition of regions for designation of revenue: • EMEA – Europe, the Middle East and Africa. • Americas (AM) - North and South America. • APAC – Asia and Pacific.	Definition of regions for designation of revenue.

Change in net sales in comparable currencies	Apr-Jun		Jan-Jun			Jan-Dec
SEK millions (if not defined differently)	2024	2023	2024	2023		2023
Net sales	176.1	126.3	318.6	252.9		559.4
Net currency effect of comparable currencies	0.2	-8.0	-1.2	-18.6		-23.9
Net sales in comparable currencies	176.3	118.3	317.4	234.3		535.5
Change in net sales in comparable currencies	39.6%	7.4%	25.5%	6.6%		12.7%
KPI Income Statement	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEK millions (if not defined differently)	2024	2023	2024	2023	Jun 2024	2023
Net sales	176.1	126.3	318.6	252.9	625.1	559.4
Net sales YoY, change in %	39.5%	14.7%	26.0%	15.0%	23.0%	17.7%
Cost of sales ex. amortization of capitalized
development	-45.2	-33.5	-90.4	-71.8	-181.0	-162.4
Gross earnings ex. amortization of capitalized
development	130.9	92.8	228.2	181.1	444.1	396.9
Gross margin ex. amortization of capitalized development	74.3%	73.5%	71.6%	71.6%	71.0%	71.0%
p development	-16.3	-14.4	-28.1	-27.8	-55.4	-55.1
Gross earnings	114.6	78.4	200.1	153.2	388.7	341.8
Gross margin	65.1%	62.1%	62.8%	60.6%	62.2%	61.1%
Sales and marketing expenses	-47.8	-38.5	-89.2	-74.0	-167.3	-152.1
Administration expenses	-17.8	-16.2	-35.2	-31.3	-66.4	-62.4
Development expenses	-12.7	-12.9	-26.2	-24.1	-54.0	-51.8
Operating expenses	-78.4	-67.6	-150.6	-129.4	-287.6	-266.4
Operating expenses/net sales	44.5%	53.5%	47.3%	51.1%	-46.0%	47.6%
Other operating income and expenses	2.1	-1.0	-0.6	-2.0	-3.2	-4.5
Operating earnings	38.3	9.9	48.9	21.9	98.0	70.9
Operating margin	21.8%	7.8%	15.4%	8.7%	15.7%	12.7%
Net financial items	0.3	4.4	7.7	5.9	8.3	6.5
Profit before tax	38.6	14.3	56.6	27.7	106.3	77.4
Tax	-8.2	-3.4	-12.0	-6.4	-22.9	-17.3
Net Income	30.4	10.9	44.6	21.3	83.4	60.1
Net margin	17.3%	8.6%	14.0%	8.4%	13.3%	10.7%

EBITDA margin	Apr-Jun			Jan-Jun	Jul 2023-	Jan-Dec
SEK millions (if not defined differently)	2024	2023	2024	2023	Jun 2024	2023
Net sales	176.1	126.3	318.6	252.9	625.1	559.4
Operating earnings	38.3	9.9	48.9	21.9	98.0	70.9
Amortization of capitalized development expenditure	16.3	14.4	28.1	27.8	55.4	55.1
Other depreciation & amortization	4.1	4.3	8.2	8.4	16.3	16.5
EBITDA	58.8	28.5	85.3	58.1	169.6	142.5
EBITDA margin	33.4%	22.6%	26.8%	23.0%	27.1%	25.5%
Capitalization of development expenditure	-23.7	-25.4	-52.4	-50.1	-95.7	-93.4
EBITDAC	35.1	3.2	32.9	8.1	73.9	49.1
EBITDAC margin	19.9%	2.5%	10.3%	3.2%	11.8%	8.8%

Development expenditure	Apr-Jun			Jan-Jun	Jul 2023-	Jan-Dec
SEK millions (if not defined differently)	2024	2023	2024	2023	Jun 2024	2023
Development expenses	12.7	12.9	26.2	24.1	54.0	51.8
Capitalization of development expenditure	23.7	25.4	52.4	50.1	95.7	93.4
Total development expenditure	36.5	38.2	78.6	74.2	149.7	145.2
Capitalization rate	65.0%	66.4%	66.6%	67.5%	64.0%	64.3%
Net Sales	176.1	126.3	318.6	252.9	625.1	559.4
Total development expenditure/net sales	20.7%	30.3%	24.7%	29.3%	23.9%	26.0%

CAPITAL AND RETURN	SHOWS HOW CAPITAL IS UTILIZED AND THE COMPANY'S FINANCIAL STRENGTH. RETURN IS A
MEASURES	FINANCIAL TERM THAT DESCRIBES HOW MUCH THE VALUE OF AN ASSET CHANGES FROM AN
	EARLIER POINT IN TIME.
Non-IFRS performance
measure	Description	Reason for use of the measure
Working capital	Current assets less cash and cash equivalents, accounts payable and other interest-free current liabilities. The Company has no interest-bearing liabilities, excluding lease liabilities. Changes in working capital in the cash flow statement also includes adjustments for items not affecting liquidity and changes in non-current operating assets and liabilities.	This measure shows how much working capital that is tied up in the operations and can be put in relation to sales to understand how effectively tied up working capital is used.
Capital employed	The Company capital employed is calculated as an average of total assets, less total liabilities, excluding interest-bearing liabilities. The Company has no interest-bearing liabilities, excluding lease liabilities.	Return on capital employed is the central ratio for measuring the return on the capital tied up in operations.
Return on capital employed	Operating earnings plus interest income, in relation to average capital employed, rolling four quarters.
Equity/asset ratio	Shareholders' equity divided by the balance sheet total.	A traditional measure for showing financial risk, expressing the ratio of the assets that is financed by the owners.
Return on equity	Net income as a percentage of average share holders' equity, rolling four quarters (R4Q).	Return on equity shows the total return on shareholders' capital and reflects the effect of the company's profitability as well as the financial leverage.
Investments	Investments in intangible and tangible assets.
Total cash flow	Change in cash and cash equivalents during the period, excluding exchange differences in cash and cash equivalents.	Definitions to rows in the cash flow statement.

Working capital	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEK millions	2024	2023	2024	2023	Jun 2024	2023
Current assets	531.4	536.7	526.5	541.1	529.5	533.5
Cash and cash equivalents	-243.6	-272.4	-251.2	-284.4	-256.5	-276.4
No interest-bearing short term liabilities	-157.1	-144.8	-151.5	-145.4	-149.9	-143.5
Working capital	130.6	119.5	123.8	111.2	123.0	113.6

Return on capital employed		Apr-Jun		Jan-Jun	Jul 2023-	Jan-Dec
SEK millions (if not defined differently)	2024	2023	2024	2023	Jun 2024	2023
Capital employed
Total balance	869.0	842.6	858.8	843.5	853.1	841.6
No interest-bearing liabilities	-207.4	-202.7	-202.3	-204.5	-202.9	-201.0
Capital employed	661.6	639.9	656.5	639.0	650.2	640.6
Operating earnings less interest income R4Q
Operating earnings R4Q	98.0	62.3	98.0	62.3	98.0	70.9
Interest income R4Q	21.1	7.6	21.1	7.6	21.1	19.6
Operating earnings less interest income R4Q	76.9	54.8	76.9	54.8	76.9	51.3
Return on capital employed	11.6%	8.6%	11.7%	8.6%	11.8%	8.0%

Equity/asset ratio		Apr-Jun		Jan-Jun	Jul 2023-	Jan-Dec
SEK millions (if not defined differently)	2024	2023	2024	2023	Jun 2024	2023
Equity	654.1	614.1	654.1	614.1	654.1	622.2
Total equity and liabilities	884.3	849.9	884.3	849.9	884.3	838.4
Equity/asset ratio	74.0%	72.2%	74.0%	72.2%	74.0%	74.2%

Return on equity		Apr-Jun		Jan-Jun	Jul 2023-	Jan-Dec
SEK millions (if not defined differently)	2024	2023	2024	2023	Jun 2024	2023
Net income - R4Q	83.4	55.4	83.4	55.4	83.4	60.1
Average equity - R4Q	626.6	615.5	626.6	615.5	626.6	612.4
Return on equity	13.3%	9.0%	13.3%	9.0%	13.3%	9.8%

SHAREHOLDERS' INFORMATION Non-IFRS performance	MEASURES RELATED TO THE SHARE.
measure	Description	Reason for use of the measure
Average number of outstanding shares	Total number of shares in the Parent company, less the number of group companies' holdings of shares in the Parent company (own/treasury shares).	Definitions of IFRS performance measures. Measures showing the return of the business to the owners, per share.
Dividend per share	Dividend divided by the average number of outstanding shares during the period.
Earnings per share (EPS)	Net income divided by the average number of outstanding shares during the period.
Cash flow per share	Total cash flow, divided by average number of outstanding shares during the period.	Measures showing the return of the business to the owners, per share.
Equity per share	Shareholders' equity divided by number of out standing shares at the end of the period.

Employees	Measures related to employees.
Non-IFRS performance measure	Description	Reason for use of the measure
Average number of employees and consultants/co-workers	The average number of employees and consultants for non-temporary positions (longer than nine months) and who do not replace absent employees, in FTE (Full-time equivalent).	To supplement the number of employees with consultants gives a better measure of the Company's cost.

	Apr-Jun			Jan-Jun	Jul 2023-	Jan-Dec
Average number of employees and consultants	2024	2023	2024	2023	Jun 2024	2023
Average number of employees	152	143	152	142	152	146
Average number of consultants	48	48	47	43	46	45
Total average number of employees and
consultants	200	191	199	185	197	191

MATERIAL PROFIT AND LOSS ITEMS

The group has identified a number of items which are material due to the significance of their nature and/or amount. These are listed separately here to provide a better understanding of the financial performance of the group:

Material profit and loss items			Apr-Jun		Jan-Jun	Jul 2023-	Jan-Dec
SEK millions	Note	2024	2023	2024	2023	Jun 2024	2023
Exchange rate differences
Part of Other operating income & expenses		2.1	-1.7	-0.6	-3.0	-3.4	-5.8
Part of Net Financial Items		-2.9	2.6	2.4	2.6	-0.9	-0.8
Total Exchange rate differences		-0.8	0.9	1.8	-0.4	-4.3	-6.5
Items affecting comparability
Restructuring g y pp ,	(a)	-	-	-2.5	-	-2.5	-
other operating income		-	0.6	-	0.6	-	0.6
Total		-	0.6	-2.5	0.6	-2.5	0.6
Operating earnings excluding items affecting comparability
Operating earnings		38.3	9.9	48.9	21.9	98.0	70.9
Items affecting comparability, as per above		-	-0.6	2.5	-0.6	2.5	-0.6
Total		38.3	9.3	51.4	21.3	100.4	70.3
Operating earnings excluding exchange rate differences
Operating earnings		38.3	9.9	48.9	21.9	98.0	70.9
Exchange rate differences, as per above		-2.1	1.7	0.6	3.0	3.4	5.8
Total		36.2	11.6	49.6	24.9	101.3	76.7
Operating earnings excluding exchange rate differences & items affecting comparability
Operating earnings		38.3	9.9	48.9	21.9	98.0	70.9
Exchange rate differences, as per above		-2.1	1.7	0.6	3.0	3.4	5.8
Items affecting comparability, as per above		-	-0.6	2.5	-0.6	2.5	-0.6
Total		36.2	11.0	52.0	24.3	103.8	76.1
Cash flow excluding share-base transactions	(b)
Net change in cash and cash equivalents		-16.1	-12.4	-31.2	-42.2	-30.6	-41.7
Repurchase of own shares		5.1	4.6	13.3	13.1	50.6	50.4
Exercised warrants		-	-0.3	-	-0.3	-7.5	-7.8
Total		-11.0	-8.0	-17.9	-29.4	12.4	0.9

All items in the table above effects operating earnings, except for (b) that affects cash flow.

(a) Severance pay in due to structural changes.

(b) Presenting the cash flow without effects from the repurchase program of own shares and exercised warrants provides a better understanding and comparison of the underlying operations' cash flow.

Net Insight AB (publ), corp.id.no. 556533-4397

Telephone: +46 (0)8 685 04 00, info@netinsight.net, www.netinsight.net

The information presented in this document may be subject to change without notice. For further information on product status and availability, please contact info@netinsight.net or visit www.netinsight.net ©Copyright 2024. Net Insight AB (publ), Sweden. All rights reserved. Net Insight and Nimbra are trademarks of Net Insight AB, Sweden. All other registered trademarks are the property of their respective owners.