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BTS Group

Annual Report Feb 24, 2023

3018_10-k_2023-02-24_a35a76bf-e445-4fc2-ad7e-47b6663561da.pdf

Annual Report

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YEAR-END REPORT JANUARY 1–DECEMBER 31, 2022

22nd record quarter

Full year 2022

  • Net sales amounted to MSEK 2,530 (1,917). Adjusted for changes in foreign exchange rates, net sales increased 17 percent, whereof 15 percent was organic.
  • Operating profit (EBITA) amounted to MSEK 348 (338). Excluding the forgiven PPP loan during 2021, the operating profit increased 21 percent to MSEK 348 (288).
  • Operating margin (EBITA margin) was 13.8 (17.6) percent. Excluding the forgiven PPP loan, the 2021 operating margin for the same period was 15.0 percent.
  • Profit after tax amounted to MSEK 198 (215). Excluding the forgiven PPP loan during 2021, the profit after tax increased 20 percent to MSEK 198 (165).
  • Earnings per share amounted to SEK 10.24 (11.11). Excluding the forgiven PPP loan during 2021, the earnings per share increased 20 percent to SEK 10.24 (8.54).

Fourth quarter 2022

  • Net sales amounted to MSEK 725 (571). Adjusted for changes in foreign exchange rates, net sales increased 11 percent.
  • Operating profit (EBITA) increased 14 percent to MSEK 114 (100).
  • Operating margin (EBITA margin) was 15.8 (17.5) percent.
  • Profit after tax increased 15 percent to MSEK 68 (59).
  • Earnings per share increased 15 percent to SEK 3.49 (3.03).

In May 2020, the US BTS subsidiary received federal COVID-19 support under the "Paycheck Protection Program" (known as PPP loans). In accordance with the guidelines from the US Authorities, this loan was written off during the third quarter of 2021 and had a positive impact of MSEK 49.7 on operating profit. For increased comparability, the outcome for the comparison year 2021 is stated throughout this interim report both including and excluding the forgiven PPP loan.

Dividend

The Board proposes a dividend of SEK 5.40 per share to be paid on two occasions in the amount of SEK 2.70 per payment.

CEO comments

Another recordbreaking year and fourth quarter comeback in North America

We delivered our twenty-second record quarter (not including 2020) where revenues, as well as operating profit, exceeded the outcome for the same period previous year.

Our revenue for the year increased 17 percent compared with 2021, with all units growing double-digits.

BTS North America came back strongly with 17 percent growth in the fourth quarter. The third quarter slowdown, due to the abrupt pausing of some of the software clients in the summer, was short-lived. A combination of growth in software, financial services, energy and pharma-bio clients fueled the growth compared to a year ago. Once again, BTSers have the freedom and the pride to move. We act fast, pivot where we spend our time, team differently, and innovate new services to fit in the evolving sweet spot of our unique clients' needs. The BTS North America team, especially within the software sector, was exceptional at rebuilding the revenue across the third and fourth quarters.

Despite our operating profit increase, our margin decreased. BTS Europe had stellar margin improvement all year. BTS Other markets was able to improve its margin in the fourth quarter. Clearly, BTS North America is the problem here. While North America's fourth quarter margin improved relative to the third quarter, their yearly operating margin declined to 13.6 (16.1) percent. This is a combination of the slowed third quarter against a larger employee base, with increased digital investments, internal training and travel, and external employee spend. A strategic review of BTS North America is ongoing to ensure that we have the right number and mix of

talent to meet increasing customer demand and improve efficiency.

Recession or not, we are ready for even more volatility and a somewhat more conservative market. We see great opportunities as well as threats. On the one hand, BTS ended the year with strong deal pipelines across the units. Our early efforts to focus our time on CEOs, industries, and companies who we believe will fare better than others in 2023 are paying off. Demand for BTS's services remains strong as companies need to drive shifting priorities and new ways of working while simultaneously improving their culture. On the other hand, we have started the year with humility. To-date, in Europe and North America, we are experiencing some project delays and longer sales cycles, particularly in the manufacturing sector and with a couple of software clients.

There is no doubt 2023 will be more challenging due to market uncertainty. At the same time, a year like this is when we tend to be the most creative, have breakthrough client engagement models and improve the company at a faster clip.

The outlook for 2023 is favorable; we believe that earnings will be better than in 2022. However, given the challenging economic environment, our outlook is more uncertain than usual.

Stockholm, February 24, 2023

Jessica Skon CEO of BTS Group AB (publ)

OPERATIONS

Sales

BTS's net sales for the full year amounted to MSEK 2,530 (1,917). Adjusted for changes in foreign exchange rates, total sales increased 17 percent.

Growth varied between the units: BTS Europe 25 percent, BTS Other markets 23 percent, BTS North America 12 percent, and APG 10 percent (growth measured in local currency).

Earnings

In May 2020, the US BTS subsidiary received federal COVID-19 support under the "Paycheck Protection Program" (known as PPP loans). In accordance with the guidelines from the US Authorities, this loan was written off during the third quarter of 2021 and had a positive impact of MSEK 49.7 on operating profit. For increased comparability, the outcome for the comparison year 2021 is stated throughout this interim report both including and excluding the forgiven PPP loan.

Operating profit (EBITA) amounted to MSEK 348 (338). Excluding the forgiven PPP loan during 2021, the operating profit increased 21 percent to MSEK 348 (288). The operating margin (EBITA margin) was 13.8 (17.6) percent. Excluding the forgiven PPP loan, the 2021 operating margin for the same period was 15.0 percent.

Operating profit (EBIT) amounted to MSEK 303 (305). Excluding the forgiven PPP loan during 2021, the operating profit increased 19 percent to MSEK 303 (256). The operating margin (EBIT margin) was 12.0 (15.9) percent. Excluding the forgiven PPP loan, the 2021 operating margin for the same period was 13.3 percent. Operating profit (EBIT) for the year was charged with MSEK 45 (33) for amortization of intangible assets attributable to acquisitions.

The Group's profit before tax amounted to MSEK 290 (289). Excluding the forgiven PPP loan during 2021, the profit before tax increased 21 percent to MSEK 290 (240).

The Group's result was positively affected by improved profit in BTS North America, BTS Europe and BTS Other markets and negatively by APG.

NET SALES AND OPERATING PROFIT (EBITA) ROLLING 12 MONTHS

REVENUE BY QUARTER

OPERATING PROFIT (EBITA) BY QUARTER

PROFIT BEFORE TAX AND OPERATING MARGIN (EBITA) BY QUARTER

Fourth quarter

BTS's fourth-quarter net sales amounted to MSEK 725 (571). Adjusted for changes in foreign exchange rates, sales increased 11 percent.

Operating profit (EBITA) increased 14 percent in the fourth quarter to MSEK 114 (100). The operating margin (EBITA margin) was 15.8 (17.5) percent.

Operating profit (EBIT) increased 14 percent in the fourth quarter to MSEK 103 (90). The operating margin (EBIT margin) was 14.2 (15.8) percent. Operating profit for the fourth quarter was charged with MSEK 11 (10) for amortization of intangible assets attributable to acquisitions.

Profit before tax in the fourth quarter increased 16 percent to MSEK 100 (86).

The Group's result was positively affected by improved profit in BTS North America, BTS Europe and BTS Other markets and negatively by APG.

Market development

During the fourth quarter we did not experience any material impact to our sales pipeline due to recession anticipation. All markets entered the year with strong pipelines. However, we expect a more volatile development during the year due to the uncertain macroeconomic outlook. We carefully monitor the development and take necessary measures.

SEGMENT REPORTING

The effects of IFRS 16 and the forgiven PPP loan during 2021 are not included in the BTS Operating units reporting, which is why the effects are recognized as Group adjustments.

Operating units

BTS North America consists of BTS's operations in the USA, excluding APG but including SwissVBS with its operations in Canada and Switzerland.

BTS Europe consists of operations in France, Germany, the Netherlands, Sweden and the UK.

BTS Other markets consists of operations in Argentina, Australia, Brazil, China, Costa Rica, India, Italy, Japan, Malaysia, Mexico, Singapore, South Africa, South Korea, Spain, Taiwan, Thailand and the United Arab Emirates.

APG consists of operations in Advantage Performance Group in the USA.

NET SALES PER OPERATING UNIT

MSEK Oct–Dec
2022
Oct–Dec
2021
Jan–Dec
2022
Jan–Dec
2021
BTS North America 353 250 1,254 949
BTS Europe 140 114 459 353
BTS Other markets 195 166 661 493
APG 36 41 156 121
Total 725 571 2 ,530 1,917

OPERATING PROFIT (EBITA) PER OPERATING UNIT

MSEK Oct–Dec
2022
Oct–Dec
2021
Jan–Dec
2022
Jan–Dec
2021
BTS North America 50.1 46.3 170.2 152.8
BTS Europe 27.7 20.1 82.4 51.0
BTS Other markets 35.4 29.0 86.7 75.2
APG –0.1 2.3 2.3 2.9
Total 113.1 97.8 341.5 282.0
Effects of IFRS 16 1.3 2.4 6.8 6.3
Forgiven PPP loan 49.7
Total 114.5 100.1 348.3 338.0

NET SALES BY SOURCE OF REVENUE JANUARY 1–DECEMBER 31, 2022 (2021)

NET SALES PER OPERATING UNIT JANUARY 1–DECEMBER 31, 2022 (2021)

BTS North America

Net sales for BTS's operations in North America amounted to MSEK 1,254 (949) for the year. Adjusted for changes in foreign exchange rates, revenue grew 12 percent. Operating profit (EBITA) amounted to MSEK 170.2 (152.8) for the year. The operating margin (EBITA margin) was 13.6 (16.1) percent.

Net sales for the fourth quarter amounted to MSEK 353 (250). Adjusted for changes in foreign exchange rates, revenue grew 17 percent. Operating profit (EBITA) amounted to MSEK 50.1 (46.3) in the fourth quarter. The operating margin (EBITA margin) was 14.2 (18.5) percent.

BTS North America's slowdown in the third quarter, due to an unexpected drop in demand from some of the customers in the software sector, was short-lived. North America's revenues increased significantly during the fourth quarter, where growth amounted to 17 percent. Although North America generated a better operating profit during the quarter, the operating margin decreased. The reduction is attributed to increased digital investments, more employees and increased costs for internal training, travel and external personnel. A strategic review of BTS North America is ongoing to ensure the right number and mix of talents to meet increasing customer demand and improve efficiency.

BTS Europe

Net sales for BTS Europe amounted to MSEK 459 (353) for the year. Adjusted for changes in foreign exchange rates, revenue grew 25 percent. Operating profit (EBITA) amounted to MSEK 82.4 (51.0) for the year. The operating margin (EBITA margin) was 17.9 (14.4) percent.

Net sales for the fourth quarter amounted to MSEK 140 (114). Adjusted for changes in foreign exchange rates, revenue grew 18 percent. Operating profit (EBITA) amounted to MSEK 27.7 (20.1) in the fourth quarter. The operating margin (EBITA margin) was 19.8 (17.7) percent.

BTS Europe had a strong development during the year with strong growth, improved margins and strong profit growth. Growth was particularly strong in our Stockholm, Paris and London offices (financial services, energy and professional services industries primarily). Europe continues to benefit from stronger pricing discipline and one-Europe resourcing ensuring high billability across all employees.

BTS Other markets

Net sales for BTS Other markets amounted to MSEK 661 (493) for the year. Adjusted for changes in foreign exchange rates, revenue increased 23 percent. Operating profit (EBITA) amounted to MSEK 86.7 (75.2) for the year. The operating margin (EBITA margin) was 13.1 (15.2) percent.

Net sales for the fourth quarter amounted to MSEK 195 (166). Adjusted for changes in foreign exchange rates, revenue increased 7 percent. Operating profit (EBITA) amounted to MSEK 35.4 (29.0) in the fourth quarter. The operating margin (EBITA margin) was 18.1 (17.5) percent.

While BTS Other markets had a good growth year, comparing year over year, quarter four growth slowed to 7 percent. Our operations in Southeast Asia, India, and Latin America drove the growth while our operations in China, Argentina, South Africa, and United Arab Emirates slowed down due to a combination of market and internal reorganizations.

BTS Other markets has continued to work on balancing optimization and growth during the fourth quarter. The operating margin has improved due to the bigger revenue size of the fourth quarter and better utilization of the team.

APG

Net sales for APG amounted to MSEK 156 (121) for the year. Adjusted for changes in foreign exchange rates, revenue increased by 10 percent. Operating profit (EBITA) amounted to MSEK 2.3 (2.9) for the year. The operating margin (EBITA margin) was 1.5 (2.4) percent.

Net sales for the fourth quarter amounted to MSEK 36 (41). Adjusted for changes in foreign exchange rates, revenue decreased 26 percent. Operating profit (EBITA) amounted to MSEK –0.1 (2.3) in the fourth quarter. The operating margin (EBITA margin) was –0.3 (5.7) percent.

The APG business started to feel the market conservatism in the fourth quarter. Compared to the fourth quarter of 2021, where they experienced many clients with excess budgets proactively purchasing services and licenses, this past quarter we did not see those same excess budgets. In addition, their sales pipeline is healthy but decisions to move forward are more cautious and take longer to close.

OTHER INFORMATION

Financial position

BTS's cash flow from operating activities for the year amounted to MSEK 199 (312). The weaker cash flow compared with last year pertained exclusively to a reduction in current liabilities. Cash flow from operating activities for the fourth quarter amounted to MSEK 187 (149).

Available cash and cash equivalents amounted to MSEK 577 (594) at the end of the period. The company's interest-bearing loans amounted to MSEK 221 (281) at the end of the period.

BTS's equity ratio was 44 (39) percent at the end of the period.

The company had no conversion loans outstanding at the balance sheet date.

Employees

As of December 31, the number of employees at BTS was 1,180 (1,071).

The average number of employees for the year was 1,129 (936).

Parent company

The Parent company's net sales during the year amounted to MSEK 4.3 (3.5) and profit before tax totaled MSEK 115.1 (62.1). Cash and cash equivalents amounted to MSEK 0.7 (0.7).

Related party transactions

A limited number of transactions with related parties, with the exception of transactions between Group companies, has taken place and in that case under prevailing market conditions.

Annual General Meeting and proposed dividend

The Annual General Meeting will be held on May 12, 2023 at 2 pm in the BTS head office Grevgatan 34, Stockholm, Sweden.

The Board proposes a dividend of SEK 5.40 per share, amounting to 104.6 (93.0) MSEK, disbursed in two payments of SEK 2.70 each.

Events after the end of the period

No significant events occurred after the close of the period.

Risks and uncertainties

The Group's material risks and uncertainties include market and business risks, operational risks and financial risks. Business risks include significant exposure to individual customers or markets, as well as the negative influence of changes in the economy. Operational risks include dependence on key individuals, insufficient skills supply, and an inability to take advantage of intellectual property, as well as if BTS does not meet the stringent quality requirements of its clients. Financial risks mainly relate to foreign exchange rates and credit risks. The management of risks and uncertainties is described in the 2021 Annual report.

Russia's invasion of Ukraine has created great uncertainty in the world. BTS has since 2020 terminated all customer and supplier relations in Russia and is not directly affected to any significant extent by the war. However, the repercussions on the global economy, especially rising inflation, has had a significant impact on BTS. Through price optimization and cost-efficiency, BTS has so far been able to handle the increasing costs.

Group management and the Board are making ongoing assessments of the effects from the pandemic, potential recession, other macro-economic trends and geopolitical risk on BTS operations, and based on these, design adequate action plans.

BTS'S OFFICES AROUND THE WORLD

Critical accounting estimates and assumptions

In order to prepare the financial statements in conformity with IFRS, Corporate management is required to make estimates and assumptions that affect the application of accounting principles and the recognized amounts of assets, liabilities, revenue and costs. Estimates and assumptions are based on historical experience, and a number of other factors that are regarded as reasonable under prevailing conditions. Actual outcomes can deviate from these estimates and assumptions. Estimates and assumptions are reviewed regularly.

Accounting principles

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as endorsed by the EU, RFR 1 Supplementary Accounting Rules for Groups, and the Swedish Annual Accounts Act. The Parent company's statements have been prepared in accordance with RFR 2 Accounting for Legal Entities and the Annual Accounts Act.

Financial calendar

Interim report Jan–Mar 2023 May 12, 2023 Interim report Jan–Jun 2023 August 18, 2023 Interim report Jan–Sep 2023 November 10, 2023

Stockholm, February 24, 2023

Jessica Skon CEO

Contact information

Jessica Skon CEO Tel: +46 8 587 070 00
Stefan Brown CFO Tel: +46 8 587 070 62
Michael Wallin Head of Investor Tel: +46 8 587 070 02
Relations Mobile: +46 70 878 80 19

For further information, visit www.bts.com

BTS Group AB (publ) Grevgatan 34 SE-114 53 Stockholm SWEDEN

Tel: +46 8 587 070 00 Company registration number: 556566-7119

About BTS Group AB

BTS is a global professional services firm headquartered in Stockholm, Sweden, with about 1,200 professionals in 37 offices located on six continents. For over 35 years, we've been partnering with our clients to enable strategy execution. At BTS, we believe that success comes from people understanding how their daily work impacts business results, so we provide the skills, tools, and knowledge your people need to take the right action at the right moment.

We are experts in behavior change and care deeply about both delivering results for our clients and ensuring that their people do the best work of their lives. Our engagements range from embedded multi-year transformation projects to brief, targeted capability development. It's strategy made personal.

Our primary practice areas include Change and transformation, Leadership development and Sales and marketing. In support of offerings from our primary practice areas, we have centers of excellence in Assessments for talent selection and development, Business acumen and innovation skill-building and Coaching as a practical tool to shift mindsets and turn strategy into action.

We've partnered with over 1,200 organizations, including over 40 of the world's 100 largest global corporations. Our major clients are some of the most respected names in business: Salesforce, SAP, Abbott, Tetra Pak, EY, Tencent, Vale, and BHP.

BTS is a public company listed on the Nasdaq Stockholm and trades under the symbol BTS B. For more information, please visit www.bts.com

Auditor's Review Report Introduction

We have reviewed the condensed interim financial information (interim report) of BTS Group AB (publ) as of December 31, 2022, and the twelve-month period then ended. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based

The scope and extent of review

on our review.

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Company. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope and extent than an audit conducted in accordance with International Standards on Auditing, ISA and the generally accepted auditing standards. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Therefore, the opinion we express does not have the assurance as an opinion based on an audit would have.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, February 24, 2023

Öhrlings PricewaterhouseCoopers AB

Magnus Thorling Authorized Public Accountant

Group income statement, summary

KSEK Oct–Dec
2022
Oct–Dec
2021
Jan–Dec
2022
Jan–Dec
2021
Net sales 724,946 570,698 2,529,634 1,916,762
Operating expenses –593,102 –445,860 –2,109,688 –1,557,303
Forgiven PPP loan 1) 49,694
Depreciation of property, plant and equipment –17,385 –24,702 –71,630 –71,189
Amortization of intangible assets –11,371 –9,716 –45,065 –32,764
Operating profit 103,088 90,420 303,251 305,200
Net financial items –3,718 –4,664 –13,879 –16,309
Associated company, profit after tax 679 135 295 320
Profit before tax 100,048 85,890 289,667 289,210
Estimated tax –32,485 –27,345 –91,261 –74,508
Profit for the period 67,563 58,545 198,405 214,702
Attributable to the shareholders
of the parent company 67,563 58,545 198,405 214,702
Earnings per share, SEK 2) 3.49 3.03 10.24 11.11
Number of shares at end of the period 2) 19,374,347 19,374,347 19,374,347 19,374,347
Average number of shares 19,374,347 19,350,334 19,374,347 19,327,972
Dividend per share, SEK 5.40 3) 4.80

1) In May 2020, the US BTS subsidiary received federal COVID-19 support under the "Paycheck Protection Program" (known as PPP loans). In accordance with the guidelines from the US Authorities, this loan was written off during the third quarter of 2021 and had a positive impact of MSEK 49.7 on operating profit.

2) Before and after dilution of shares.

3) Proposed dividend.

Group statement of comprehensive income

KSEK Oct–Dec
2022
Oct–Dec
2021
Jan–Dec
2022
Jan–Dec
2021
Profit for the period 67,563 58,545 198,405 214,702
Items that will not be reclassified
to profit or loss
Items that may be reclassified
to profit or loss
Translation differences in equity –55,952 18,454 124,576 64,998
Other comprehensive income for
the period, net of tax
–55,952 18,454 124,576 64,998
Total comprehensive income for
the period
11,611 76,999 322,981 279,700
attributable to the shareholders
of the parent company
11,611 76,999 322,981 279,700

Group balance sheet, summary

31 Dec 31 Dec
KSEK 2022 2021
Assets
Goodwill 908,882 830,094
Other intangible assets 120,564 114,895
Tangible assets 186,405 180,072
Financial assets 27,682 21,937
Total non-current assets 1,243,533 1,146,999
Trade receivables 723,145 556,852
Other current assets 214,780 193,552
Cash and cash equivalents 577,061 594,435
Total current assets 1,514,986 1,344,839
TOTAL ASSETS 2,758,519 2,491,837
Equity and liabilities
Equity 1,213,930 983,250
Non-current liabilities 508,196 542,544
Current liabilities 1,036,393 966,043
Total liabilities 1,544,589 1,508,587
TOTAL EQUITY AND LIABILITIES 2,758,519 2,491,837

Group cash flow statement, summary

KSEK Jan–Dec
2022
Jan–Dec
2021
Cash flow before changes in working capital 350,572 316,752
Cash flow from changes in working capital –151,558 –4,707
Cash flow from operating activities 199,014 312,045
Acquisition related –14,968 –160,434
Acquisition of assets –60,946 –21,453
Cash flow from investing activities –75,914 –181,887
Dividend –92,997 –23,194
Other –115,283 –137,443
Cash flow from financing activities –208,280 –160,637
Cash flow for the period –85,181 –30,478
Cash and cash equivalents, opening balance 594,435 591,171
Translation differences in cash and cash equivalents 67,807 33,742
Cash and cash equivalents, closing balance 577,061 594,435

Group changes in consolidated equity

KSEK 31 Dec
2022
31 Dec
2021
Opening balance 983,250 709,857
Dividend to shareholders –92,997 –23,194
New issue 16,862
Other 695 25
Total comprehensive income for the period 322,981 279,700
Closing balance 1,213,930 983,250

Parent company's income statement, summary

KSEK Oct–Dec
2022
Oct–Dec
2021
Jan–Dec
2022
Jan–Dec
2021
Net sales 995 835 4,260 3,480
Operating expenses 3,356 –1,443 –2,755 –3,821
Operating profit 4,351 –608 1,505 –341
Net financial items 79,971 29,102 113,637 62,403
Profit before tax 84,322 28,494 115,142 62,062
Estimated tax –3,631 –4,237 –3,631 –4,237
Profit for the period 80,691 24,257 111,512 57,824

Parent company's balance sheet, summary

KSEK 31 Dec
2022
31 Dec
2021
Assets
Financial assets 436,222 430,634
Other current assets 83,996 125,282
Cash and cash equivalents 685 658
Total assets 520,904 556,573
Equity and liabilities
Equity 204,726 186,211
Non-current liabilities 132,776 177,523
Current liabilities 183,402 192,838
Total equity and liabilities 520,904 556,573

Group consolidated key ratios

KSEK Oct–Dec
2022
Oct–Dec
2021
Jan–Dec
2022
Jan–Dec
2021
Net sales 724,946 570,698 2,529,634 1,916,762
Operating profit (EBITA) 114,459 100,135 348,316 337,964
Operating margin (EBITA margin), % 15.8 17.5 13.8 17.6
Operating profit (EBIT) 103,088 90,420 303,251 305,200
Operating margin (EBIT margin), % 14.2 15.8 12.0 15.9
Profit margin, % 9.3 10.3 7.8 11.2
Operating capital 1) 857,527 669,677
Return on operating capital, % 40 51
Return on equity, % 18 25
Equity ratio, at end of the period, % 44 39 44 39
Cash flow 69,449 72,001 –85,181 –30,478
Cash and cash equivalents, at end
of the period
577,061 594,435 577,061 594,435
Average number of employees 1,174 1,044 1,129 936
Number of employees at the end
of the period
1,180 1,071 1,180 1,071
Revenues for the year per employee 2,241 2,048

1) The calculation included the item of non-interest-bearing liabilities amounting to KSEK 1,324 (1,228).

Net sales according to business model

MSEK Jan–Dec
Jan–Dec
2022
2021
BTS North
America
BTS
Europe
BTS Other
markets
APG Total BTS North
America
BTS
Europe
BTS Other
markets
APG Total
Programs 699 303 475 119 1,595 548 245 361 90 1,244
Development 324 109 161 594 268 80 113 462
Licenses 216 41 14 38 308 132 26 16 29 203
Other revenue 14 7 11 32 2 2 4 1 8
TOTAL 1,254 459 661 156 2,530 949 353 493 121 1,917

DEFINITIONS

Earnings per share

Earnings attributable to the parent company's shareholders divided by number of shares before dilution.

Operating margin (EBITA margin)

Operating profit before interest, tax and amortization as a percentage of net sales.

Operating margin (EBIT margin)

Operating profit after depreciation as a percentage of net sales.

Profit margin

Profit for the period as a percentage of net sales.

Operating capital

Total balance sheet reduced by liquid funds and other interest-bearing assets and reduced by non-interest bearing liabilities.

Return on operating capital

Operating profit (EBIT) as a percentage of average operating capital.

Return on equity

Profit after tax as a percentage of average equity.

Equity ratio

Equity as a percentage of the total balance sheet.

Sweden

HEAD OFFICE Grevgatan 34 114 53 Stockholm Tel: +46 8 587 070 00

Argentina

Reconquista 657 PB 3 CP1003 CABA. Buenos Aires Tel: +54 911 5795 5721

Australia

Level 24 570 Bourke Street Melbourne VIC 3000 Tel: +61 3 7001 1811

Level 6 10 Barrack Street Sydney NSW 2000 Tel: +61 02 8243 0900

Brazil

Rua Geraldo Flausino Gomes, 85, cj 42 04575-060 São Paulo – SP Tel: +55 (11) 5505 2070

Canada

SwissVBS 460 Richmond Street W. Suite 700 Toronto, ON M5V 1Y1 Tel: +1 416 848 3744

China

1376 West Nanjing Road Suite 531, East Office Tower Shanghai Centre Shanghai 200040 Tel: +86 21 6289 8688

France

57 Rue de Seine 75006 Paris Tel: +33 1 40 15 07 43

Germany

Ritterstraße 12 D-50668 Cologne Tel: +49 221 270 70 763

India

801, 8th Floor, DLH Park Near MTNL Staff quarters, S.V. Road, Goregaon (West). Mumbai - 400062 Maharashtra Tel: +91 22 6196 6800

10th Floor, Parinee Crescenzo, G block, Bandra Kurla Complex, Bandra East, Mumbai - 400051 Tel: +91 98 1993 4615

Italy

Corso Venezia 7 20121 Milan Tel: +39 02 6611 6364

BTS Design innovation Viale Abruzzi, 13 20131 Milan Tel: +39 02 69015719

Japan

TS Kojimachi Bldg. 3F 6-4-6 Kojimachi Chiyoda-ku Tokyo 102-0083 Tel: +81 (3) 6272 9973

Malaysia

Suite 8 & 9 Level 23, NU Tower 2, Jalan Tun Sambanthan, KL Sentral, 50470 Kuala Lumpur Tel: +603-2727 1616

Mexico

Edificio Torre Moliere Calle Moliere 13 – PH Col Chapultepec Polanco C.P. 11560 México, D.F. Tel: +52 (55) 52 81 69 72

The Netherlands

Barbara Strozzilaan 201 1083 HN Amsterdam Tel: + 31 (0)20 615 15 14

Singapore

1 Finlayson Green Suite 16-01 Singapore 049246 Tel: +65 63043032

Spain

Simon Bolivar 27-1, Office No. 4 Bilbao 48013 Tel: +34 94 423 5594

Paseo de la Castellana 91 5th Floor 28046 Madrid Tel: +34 91 417 5327

Netmind SL. Carrer dels Almogàvers 123 08018 Barcelona Tel: +34 93 304 1720

Netmind SL. Calle Bambú 8v 28036 Madrid Tel: +34 914 427 703

South Africa 267 West Avenue, 1st Floor Centurion 0046, Gauteng Tel: +27 12 663 6909

South Korea

2nd Floor, Golden Nugget 3 Itaewon-ro 55ga-gil Yongsan-gu, Seoul 04348 Tel: +82 2 539 7676

Switzerland

SwissVBS Winkelriedstrasse 35 9000 St. Gallen Tel: +41 71 845 5936

Taiwan

7 F., No. 307, Dun-Hua, North Road Taipei 105 Tel: +886 2 8712 3665

Thailand

128/38 Phayathai Plaza Building, 4th Floor, Room D-128/38, Phayathai Road, Thungphayathai Sub-District, Ratchathewi District, Bangkok Metropolis Postcode: 10400 Tel: +66 2 216 5974

UK

1 Queen Caroline Street London W6 9YN Tel: +44 20 7368 4180

Unit 307 East Wing Building 1000 Lakeside North Harbour Western Road Portsmouth PO6 3EN Tel: +44 2393 162686

United Arab Emirates

14th Floor, Suite 1401, Reef Tower Cluster O, Jumeirah Lakes Towers Dubai Tel: +971 4 589 6143

USA

200 South Wacker Drive Suite 850 Chicago, IL 60606 Tel: +1 312 509 4750

350 Fifth Avenue Suite 5020 New York, NY 10118 Tel: +1 646 378 3730

4742 N. 24th Street Suite 120 Phoenix, AZ 85016 Tel: +1 480 948 2777

222 Kearny Street Suite 1000 San Francisco, CA 94108 Tel: +1 415 362 4200

Rapid Learning Institute 435 Devon Park Drive, Bldg. 510, Wayne, PA 19087 Tel: (toll free) +1 877 792 2172

Bates Communications Inc. 40 Walnut Street Suite 302 Wellesley, MA 02481 Tel: +1 800 908 8239

Advantage Performance Group

100 Smith Ranch Road, Suite 306 San Rafael, CA 94903 USA Tel: +1 800 494 6646

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