BTS Group

Annual Report • Feb 23, 2022

YEAR-END REPORT JANUARY 1 – DECEMBER 31, 2021

Revenue and earnings 18 percent higher than in 2019

Full year 2021

• • Net sales amounted to MSEK 1,917 (1,464). Adjusted for changes in foreign exchange rates, sales increased 38 percent.
• • Operating profit (EBITA) increased to MSEK 338 (90). Excluding the forgiven PPP loan EBITA increased to MSEK 288 (90).
• • The operating margin (EBITA margin) was 17.6 percent (6.2). Excluding the forgiven PPP loan MSEK 15.0 (6.2).
• • Profit after tax increased to MSEK 215 (35). Excluding the forgiven PPP loan profit increased to MSEK 165 (35).
• • Earnings per share increased to SEK 11.11 (1.82). Excluding the forgiven PPP loan earnings per share increased to SEK 8.54 (1.82).
• • Adjusted for changes in foreign exchange rates, net sales increased 13 percent compared with 2019. Virtual deliveries mean that there are no expenses charged to revenue. The actual growth of the operations was approximately 18 percent.
• • Compared with 2019, operating profit (EBITA) increased by 18 percent and profit before tax by 11 percent, excluding the forgiven PPP loan. Adjusted for changes in foreign exchange rates, EBITA grew 32 percent and profit before tax increased 26 percent.

Fourth quarter 2021

• • Net sales amounted to MSEK 571 (423). Adjusted for changes in foreign exchange rates, sales increased 33 percent.
• • Operating profit (EBITA) increased to MSEK 100 (45).
• • The operating margin (EBITA margin) was 17.5 percent (10.7).
• • Profit after tax increased to MSEK 59 (24).
• • Earnings per share increased to SEK 3.03 (1.22).
• • Adjusted for changes in foreign exchange rates, net sales increased 12 percent compared with 2019. The actual growth of the operations was approximately 17 percent.
• • Operating profit (EBITA) increased 13 percent and profit before tax increased 7 percent compared with 2019. Adjusted for changes in foreign exchange rates, EBITA grew 26 percent and profit before tax increased 21 percent.

Q4

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 2021 is stated throughout this interim report both including and excluding the forgiven PPP loan.

Dividend

• The Board proposes a dividend of SEK 4.80 per share to be paid on two occasions in the amount of SEK 2.40 per payment.

Another recordbreaking year and positive outlook for 2022

2021 will be another record-breaking year – our best ever. Our long-term strategy for managing the pandemic is working and we have taken our company to a new level. Our revenue increases 13 percent, adjusted for changes in foreign exchange rates, compared with 2019. Virtual deliveries mean that there are no expenses charged to revenue. The actual growth of the operations is approximately 18 percent, of which 12 percent is organic growth.

Despite strong currency headwinds, our operating profit increases 18 percent compared with 2019. Adjusted for currency effects, our earnings increase more than 30 percent.

Our margin continues to improve: it increases approximately 2 percentage points compared with 2019, to 15 percent. The main reasons for the increase are more efficient resource usage, price optimization and reduced external costs, while increased digital investments are charged to earnings. We have now reached our goal to achieve an EBITA margin of 15 percent, and now set a new long-term goal of reaching a margin of 17 percent.

The pandemic has initiated significant changes to strategies and organizations in major companies around the world, creating increased demand for our services. BTS is an even more attractive partner for our customers today, thanks to our head start in virtual services, our continued investment in product development and the fact that we kept our employees through the pandemic.

Most of our customers will demand a combination of physical, virtual and digital solutions. We believe that the demand for digital solutions will increase and we will be investing significantly more in product development for digital solutions. Our goal is to meet our customers' evolving needs and to increase our licensing revenue.

We carried out two acquisitions in 2021; Bates in North America and Netmind in Europe. Both acquisitions perform well in terms of growth and synergies.

BTS is coming out of the pandemic with an expanded customer base, a stronger offering of services, a stronger organization and increased revenue from virtual and digital solutions. Overall, we have reached a new level this year and are well positioned for continued long-term sustainable and profitable growth.

The outlook for 2022 is favorable; we believe that earnings will be better than 2021.

Stockholm, February 23, 2022

Henrik Ekelund

President and CEO of BTS Group AB (publ)

PS. It should be noted that the formally reported operating profit for 2021 is MSEK 49.7 higher than my descriptions above. This is due to the announcement by the US authorities in the third quarter that they forgive that same amount in PPP loans (the Paycheck Protection Program), the purpose of which was to support us in 2020 owing to our retaining all our personnel. This is attributable to the events of 2020, which is why it can be said that our earnings were MSEK 49.7 higher in 2020 than we could report. In accordance with the IFRS reporting standards, which we in our stock exchange contract have committed ourselves to follow, this must be reported in the business for 2021.

OPERATIONS

Sales

BTS's net sales for the full year amounted to MSEK 1,917 (1,464). Adjusted for changes in foreign exchange rates, total sales increased 38 percent.

Growth varied between the units: BTS North America 48 percent, BTS Other markets 43 percent, APG 36 percent and BTS Europe 13 percent (growth measured in local currency).

Compared with 2019, sales increased 13 percent adjusted for changes in foreign exchange rates. It should be noted that the virtual deliveries meant no travel expenses were charged to customers, which is why the underlying growth in operations is approximately 5 percent higher. Of the underlying growth of 18 percent, 12 percent is organic growth.

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 2021 is stated throughout this interim report both including and excluding the forgiven PPP loan.

Operating profit (EBITA) increased during the year to MSEK 338 (90), excluding the forgiven PPP loan MSEK 288 (90). The operating margin (EBITA margin) was 17.6 percent (6.2), excluding the forgiven PPP loan 15.0 percent (6.2).

Compared with 2019, operating profit (EBITA), excluding the forgiven PPP loan, increased by 18 percent. The operating margin (EBITA margin) increased from 13.2 to 15.0 percent, excluding the forgiven PPP loan.

Operating profit (EBIT) increased during the year to MSEK 305 (65), excluding the forgiven PPP loan MSEK 256 (65). The operating margin (EBIT margin) was 15.9 percent (4.4), excluding the forgiven PPP loan 13.3 percent (4.4). Operating profit for the year (EBIT) was charged with MSEK 32.8 (25.7) for amortization of intangible assets attributable to acquisitions.

NET SALES AND OPERATING PROFIT (EBITA) ROLLING 12 MONTHS

REVENUE BY QUARTER

OPERATING PROFIT (EBITA) BY QUARTER

0

20

40

60

80

100

NET SALES BY SOURCE OF REVENUE JANUARY 1–DECEMBER 31, 2021 (2020)

NET SALES PER OPERATING UNIT JANUARY 1–DECEMBER 31, 2021 (2020)

The Group's earnings before tax increased to MSEK 289 (51), excluding the forgiven PPP loan MSEK 240 (51).

The Group's profitability was positively affected by improved profit in all operating units compared with last year.

Fourth quarter

BTS's fourth-quarter net sales amounted to MSEK 571 (423). Adjusted for changes in foreign exchange rates, sales increased 33 percent.

Compared with the fourth quarter of 2019, sales increased 12 percent adjusted for changes in foreign exchange rates. It should be noted that the virtual deliveries meant no travel expenses were charged to customers, which is why the underlying growth in operations is approximately 5 percent higher.

Operating profit (EBITA) during the fourth quarter increased to MSEK 100 (45). The operating margin (EBITA margin) was 17.5 percent (10.7).

Compared with the fourth quarter of 2019, operating profit (EBITA) increased 13 percent. The operating margin increased from 16.1 to 17.5 percent.

Operating profit (EBIT) increased to MSEK 90 (38). The operating margin (EBIT margin) was 15.8 percent (9.0). Operating profit for the fourth quarter was charged with MSEK 9.7 (7.4) for amortization of intangible assets attributable to acquisitions.

Profit before tax for the fourth quarter increased to MSEK 86 (34).

The Group's profitability was positively affected by improved profit in all operating units compared with last year.

Market development

The market developed positively during the year. The pandemic initiated significant changes to strategy and organization in many companies, which increases the demand for our services. Virtual deliveries are now fully accepted as a possible replacement for physical deliveries. Demand is increasing for digital solutions.

SEGMENT REPORTING

The effects of IFRS 16 and the forgiven PPP loans 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, the UK and Sweden.

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 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
BTS North America	250	175	949	689
BTS Europe	114	92	353	316
BTS Other markets	166	124	493	363
APG	41	31	121	95
Total	571	423	1,917	1,464

OPERATING PROFIT (EBITA) PER OPERATING UNIT

MSEK	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
BTS North America	46.3	11.7	152.8	48.8
BTS Europe	20.1	8.8	51.0	19.5
BTS Other markets	29.0	22.7	75.2	19.4
APG	2.3	0.8	2.9	–2.9
EBITA per operating unit	97.8	44.0	282.0	84.8
Effects of IFRS 16	2.4	1.4	6.3	5.5
Forgiven PPP loan	–	–	49.7	–
Total	100.1	45.4	338.0	90.3

BTS North America

Net sales for BTS's operations in North America amounted to MSEK 949 (689) for the year. Adjusted for changes in foreign exchange rates, revenue grew 48 percent. Operating profit (EBITA) totaled MSEK 153 (49) for the year. The operating margin (EBITA margin) was 16.1 percent (7.1).

Compared with 2019, net sales adjusted for changes in foreign exchange rates increased 19 percent and operating profit (EBITA) in SEK increased 29 percent.

Net sales for the fourth quarter amounted to MSEK 250 (175). Adjusted for changes in foreign exchange rates, revenue grew by 39 percent. Operating profit (EBITA) amounted to MSEK 46 (12) in the fourth quarter. The operating margin (EBITA margin) was 18.5 percent (6.7).

Compared with the fourth quarter of 2019, net sales adjusted for changes in foreign exchange rates increased 11 percent and operating profit (EBITA) in SEK increased 44 percent.

The market in North America has developed positively and BTS has been extremely successful with sales and deliveries of virtual services. The margin improved by 2 percentage points compared with 2019 due to more efficient resource usage, price optimization and lower external costs. A shortage of resources during the fourth quarter meant that some assignments and revenues were postponed to the first quarter of 2022.

BTS Europe

Net sales for BTS Europe amounted to MSEK 353 (316) for the year. Adjusted for changes in foreign exchange rates, revenue grew 13 percent. Operating profit (EBITA) totaled MSEK 51 (19) for the year. The operating margin (EBITA margin) was 14.4 percent (6.2).

Compared with 2019, net sales adjusted for changes in foreign exchange rates decreased 6 percent and operating profit (EBITA) in SEK decreased 19 percent.

Net sales for the fourth quarter amounted to MSEK 114 (92). Adjusted for changes in foreign exchange rates, revenue grew by 21 percent. Operating profit (EBITA) amounted to MSEK 20 (9) in the fourth quarter. The operating margin (EBITA margin) was 17.7 percent (9.5).

Compared with the fourth quarter of 2019, net sales adjusted for changes in foreign exchange rates decreased 9 percent and operating profit (EBITA) in SEK decreased 32 percent.

The negative growth in BTS Europe was due to a significant downturn in BTS Germany, where two major projects were finished after the first half of the year. This hides the fact that several units in BTS Europe posted healthy growth. We expect operations in Germany to stabilize and that BTS Europe will post healthy growth in the first quarter.

BTS Other markets

Net sales for BTS Other markets amounted to MSEK 493 (363) for the year. Adjusted for changes in foreign exchange rates, revenue grew 43 percent. Operating profit (EBITA) totaled MSEK 75 (19) for the year. The operating margin (EBITA margin) was 15.2 percent (5.4).

Compared with 2019, net sales adjusted for changes in foreign exchange rates increased 15 percent and operating profit (EBITA) in SEK increased 32 percent.

Net sales for the fourth quarter amounted to MSEK 166 (124). Adjusted for changes in foreign exchange rates, revenue grew by 36 percent. Operating profit (EBITA) amounted to MSEK 29 (23) in the fourth quarter. The operating margin (EBITA margin) was 17.5 percent (18.3).

Compared with the fourth quarter of 2019, net sales adjusted for changes in foreign exchange rates increased 26 percent and operating profit (EBITA) in SEK increased 21 percent.

The positive trend in BTS Other markets accelerated in the fourth quarter. The margin improved by 3 percentage points in 2019 due to more efficient resource usage, price optimization and lower external costs.

APG

Net sales for APG amounted to MSEK 121 (95) for the year. Adjusted for changes in foreign exchange rates, revenue grew 36 percent. Operating profit (EBITA) for the year amounted to MSEK 2.9 (–2.9). The operating margin (EBITA margin) was 2.4 percent (–3.1).

Compared with 2019, net sales adjusted for changes in foreign exchange rates increased 18 percent and operating profit (EBITA) in SEK increased 89 percent.

Net sales amounted to MSEK 41 (31) in the fourth quarter. Adjusted for changes in foreign exchange rates, revenue grew by 26 percent. Operating profit (EBITA) amounted to MSEK 2.3 (0.8) in the fourth quarter. The operating margin (EBITA margin) was 5.7 percent (2.7).

Compared with the fourth quarter of 2019, net sales adjusted for changes in foreign exchange rates increased 45 percent and operating profit (EBITA) in SEK increased 53 percent.

The strong market in the USA and effective marketing led to positive growth for APG during the year, which accelerated during the fourth quarter.

BTS'S OFFICES AROUND THE WORLD

OTHER INFORMATION

Financial position

BTS's cash flow from operating activities amounted to MSEK 312 (242) for the year.

Available cash and cash equivalents amounted to MSEK 594 (591) at the end of the period. The company's interest-bearing loans amounted to MSEK 281 (404) at the end of the period.

BTS's equity ratio was 39 percent (36) at the end of the period.

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

Employees

Per December 31, the number of employees at BTS was 1,071 (821). Out of the staff increase of 250 employees, 24 were added through the acquisition of Bates, 61 through the acquisition of Netmind and 63 were added in BTS Digital.

The average number of employees for the year was 936 (843).

Parent Company

The Parent Company's net sales in the year amounted to MSEK 3.5 (3.4) and profit before tax totaled MSEK 62.1 (52.2). Cash and cash equivalents amounted to MSEK 0.7 (44.0).

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 13, 2022 at 1:00 p.m. in the BTS office Grevgatan 34, Stockholm, Sweden.

Depending on how the global covid-19 pandemic develops, and if the Swedish Parliament decides to extend the temporary law SFS 2020: 198, the Board may, however, decide that the Annual General Meeting shall instead be conducted by advance voting (so-called postal voting). In that case, no meeting with the opportunity to attend in person or through a representative will take place.

The Board proposes a dividend of SEK 4.80 per share, disbursed in two payments of SEK 2.40 each.

Acquisitions

BTS acquired Bates Communication, Inc. (Bates) on January 4, 2021, as previously communicated in a press release on the same date. The acquisition encompasses all operations including employees, technology, intellectual property, customer relations, brands and equipment.

Bates helps some of the top companies in the world to execute their strategies, primarily in the US, and the client portfolio has only a limited overlap with that of BTS. The acquisition creates the preconditions for the original operations of both companies to develop major synergies in the service offerings and customer bases.

BTS acquired BTS Netmind SL on September 16, 2021, as previously communicated in a press release on the same date. The acquisition encompasses all operations including employees, technology, intellectual property, customer relations, brands and equipment.

The acquisition of Netmind enables BTS to considerably strengthen its position in the Spanish-speaking markets. With its focus on digital and agile change solutions, Netmind's offering complements BTS, which thus strengthens its position for continued growth in Spain and in other markets.

Netmind partners with some of the world's leading companies to succeed in the digital field using Netmind's innovative solutions, proprietary concepts and methods, in-house models for agile change and an extensive library of courses and training. Netmind's customer base has only a limited overlap with BTS, which offers significant potential for synergies.

Ratification of acquisition analyses

The preliminary acquisition analyses regarding the year's acquisition of Bates and Netmind have been ratified. The effect of the ratification is an increase in goodwill and a provision for deferred tax liability of MSEK 17.8. The acquisition calculations ratified at the date of the acquisition translated at the exchange rate on the balance sheet date at December 31, 2021:

MSEK	Bates	Netmind	Total
Tangible assets	0.5	3.5	4.0
Intangible assets	16.9	40.8	57.7
Receivables	14.5	17.8	32.3
Cash and cash equivalents	5.6	7.4	13.0
Non-current liabilities	–5.6	–3.9	–9.5
Current liabilities	–9.2	–13.6	–22.8
Identifiable assets	22.8	53.6	74.8
Goodwill	67.7	162.8	230.4
Total purchase price	90.4	214.8	305.2
Fair value of issued shares	–4.5	–5.1	–9.6
Estimated additional cash purchase price	0.0	–3.3	–3.3
Provision for conditional purchase price	–55.0	–148.4	–230.5
Purchase price paid in cash 2021	30.9	57.9	88.8

Goodwill consists of expected future synergy effects in the form of an expanded product range and more services. Alongside synergy effects, the addition of qualified employees and future profitability components are included in the goodwill item. The provision for conditional purchase price is included in the balance sheet under Provisions in the amount of MSEK 203.

The purchase price can amount to anywhere between MSEK 13.6 and a maximum of MSEK 291.1. No acquisition costs were capitalized, but were instead expensed in their entirety. Expenses for completing the acquisitions including issue costs are included in the Group's operating expenses for 2021 in the amount of MSEK 2.9. Acquisitions in 2021 contributed MSEK 102 to the Group's net sales and MSEK 23 to the Group's profit after tax.

Impact of the COVID-19 pandemic Operations

In 2021, the Corona pandemic has continued to have a significant impact on communities and businesses, primarily through shutdowns and severe restrictions. As previously communicated, BTS took a number of strategic measures early on to manage the effects of the pandemic, where the health and well-being of our employees and customers has the highest priority, which in some cases has led to stricter rules than recommended by the authorities. As vaccination work has progressed and restrictions have been lifted, the impact of the pandemic on operations is diminishing.

Support measures

During the year the Group has, to a very limited extent, benefited from local support measures which have reduced personnel costs by a total of MSEK 1.9. No employees were affected by any furloughs during the year.

Events after the end of the period

No significant events occurred after the end of the period.

Risks and uncertainties

The Group's material risks and uncertainties include, among others, 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 BTS not meeting the stringent 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 2020 Annual Report.

The COVID-19 pandemic has had a significant impact on the general market climate and global economy. Initially, the pandemic negatively impacted the Group's sales and earnings, which was the effect of severe restrictions on freedom of movement in several countries where BTS operates. Over time however, demand for the Group's services, primarily virtual, has increased as a result of the strategic change needs that have arisen among the world's major companies due to the pandemic. Group management and the Board are continuously analyzing and evaluating the underlying market trends and changes that may affect the Group – negatively or positively – and are developing appropriate action plans.

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

Annual report 2021 April 2022 Interim report Jan–Mar 2022 May 13, 2022 Interim report Jan–Jun 2022 August 18, 2022 Interim report Jan–Sep 2022 November 11, 2022

Stockholm, February 23, 2022

Henrik Ekelund CEO

Contact information

Henrik Ekelund 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

Auditor's Review Report Introduction

We have reviewed the condensed interim financial information (interim report) of BTS Group AB (publ) as of December 31, 2021, 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 on our review.

The scope and extent of 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 23, 2022

Öhrlings PricewaterhouseCoopers AB

Magnus Thorling Authorized Public Accountant

We partner with nearly 450 organizations, including over 30 of the world's 100 largest global corporations. Our major clients are e.g.: ABB, Chevron, Coca-Cola, Ericsson, EY, HP, Mercado Libre, Salesforce.com, SAP and Tencent.

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

BTS is a global professional services firm headquartered in Stockholm, Sweden. BTS has more than 1,070 professionals in 36 offices located on six continents. We focus on the people side of strategy, working with leaders at all levels to help them make better decisions, convert those decisions to actions and deliver results. At our core, we believe people learn best by doing. For 35 years, we've been designing fun, powerful experiences™ that have a profound and lasting impact on people and their careers. We inspire new ways of thinking, build critical capabilities and unleash business success. It's strategy made personal.

We serve a wide range of client needs, including: Strategy execution, Leadership development programs, Assessment, Developing business acumen, Transforming sales organizations, Coaching, and Digital solutions, events and services.

Group income statement, summary

KSEK	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales	570,698	422,631	1,916,762	1,464,155
Operating expenses	–445,860	–360,998	–1,557,303	–1,308,726
Forgiven PPP loan1	–	–	49,694	–
Depreciation of property, plant and equipment	–24,702	–16,245	–71,189	–65,123
Amortization of intangible assets	–9,716	–7,367	–32,764	–25,700
Operating profit	90,420	38,021	305,200	64,607
Net financial items	–4,664	–3,988	–16,309	–13,907
Associated company, profit after tax	135	260	320	353
Profit before tax	85,890	34,293	289,210	51,053
Estimated tax	–27,345	–10,746	–74,508	–15,826
Profit for the period	58,545	23,547	214,702	35,226
Attributable to the shareholders of the parent company	58,545	23,547	214,702	35,226
Earnings per share, before dilution of shares, SEK	3.03	1.22	11.11	1.82
Number of shares at end of the period	19,374,347	19,318,292	19,374,347	19,318,292
Average number of shares before dilution	19,350,334	19,318,292	19,327,972	19,318,292
Earnings per share, after dilution of shares, SEK	3.03	1.22	11.11	1.82
Average number of shares after dilution	19,350,334	19,318,292	19,327,972	19,318,292
Dividend per share, SEK			4.802	1.20

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. For increased comparability, the outcome for 2021 is stated throughout this Interim Report both including and excluding the forgiven PPP loan.

2 Proposed dividend.

Group statement of comprehensive income

KSEK	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Profit for the period	58,545	23,547	214,702	35,226
Items that will not be reclassified to profit or loss	–	–	–	–
	–	–	–	–
Items that may be reclassified to profit or loss
Translation differences in equity	18,454	–53,384	64,998	–95,397
Other comprehensive income for the period, net of tax	18,454	–53,384	64,998	–95,397
Total comprehensive income for the period	76,999	–29,838	279,700	–60,171
Attributable to the shareholders of the parent company	76,999	–29,838	279,700	–60,171

Group balance sheet, summary

KSEK	31 Dec 2021	31 Dec 2020
Assets
Goodwill	830,094	548,759
Other intangible assets	114,895	75,219
Tangible assets	180,072	185,382
Financial assets	21,937	16,782
Total non-current assets	1,146,999	826,143
Trade receivables	556,852	408,549
Other current assets	193,552	134,224
Cash and cash equivalents	594,435	591,171
Total current assets	1,344,839	1,133,943
TOTAL ASSETS	2,491,837	1,960,087
Equity and liabilities
Equity	983,250	709,857
Non-current liabilities	529,439	430,590
Current liabilities	979,148	819,639
Total liabilities	1,508,587	1,250,229
TOTAL EQUITY AND LIABILITIES	2,491,837	1,960,087

Group cash flow statement, summary

KSEK	Jan–Dec 2021	Jan–Dec 2020
Cash flow before changes in working capital	316,752	99,929
Cash flow from changes in working capital	–4,707	142,177
Cash flow from operating activities	312,045	242,106
Acquisition related	–160,434	–125,718
Acquisition of assets	–21,453	–21,931
Cash flow from investing activities	–181,887	–147,649
Dividend	–23,194	–69,546
Other	–137,443	282,572
Cash flow from financing activities	–160,637	213,026
Cash flow for the period	–30,478	307,484
Cash and cash equivalents, opening balance	591,171	316,388
Translation differences in cash and cash equivalents	33,742	–32,701
Cash and cash equivalents, closing balance	594,435	591,171

Group changes in consolidated equity

KSEK	31 Dec 2021	31 Dec 2020
Opening balance	709,857	839,678
Dividend to shareholders	–23,194	–69,546
New issue	16,862	–
Other	25	–104
Total comprehensive income for the period	279,700	–60,171
Closing balance	983,250	709,857

Parent Company's income statement, summary

KSEK	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales	835	885	3,480	3,360
Operating expenses	–1,443	–3,377	–3,821	–6,071
Operating profit	–608	–2,492	–341	–2,711
Net financial items	29,102	39,441	62,403	54,896
Profit before tax	28,494	36,949	62,062	52,184
Estimated tax	–4,237	–3,209	–4,237	–3,209
Profit for the period	24,257	33,740	57,824	48,975

Parent Company's balance sheet, summary

KSEK	31 Dec 2021	31 Dec 2020
Assets
Financial assets	430,634	301,460
Other current assets	94,397	143,070
Cash and cash equivalents	658	44,041
Total assets	525,689	488,571
Equity and liabilities
Equity	186,211	134,719
Non-current liabilities	177,523	187,247
Current liabilities	161,954	166,605
Total equity and liabilities	525,689	488,571

Group consolidated key ratios

KSEK	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales	570,698	422,631	1,916,762	1,464,155
Operating profit (EBITA)	100,135	45,388	337,964	90,306
Operating margin (EBITA margin), %	17.5	10.7	17.6	6.2
Operating profit (EBIT)	90,420	38,021	305,200	64,607
Operating margin (EBIT margin), %	15.8	9.0	15.9	4.4
Profit margin, %	10.3	5.6	11.2	2.4
Operating capital1			669,677	522,988
Return on operating capital, %			51	12
Return on equity, %			25	5
Equity ratio, at end of the period, %	39	36	39	36
Cash flow	72,001	37,250	–30,478	307,484
Cash and cash equivalents, at end of the period	594,435	591,171	594,435	591,171
Average number of employees	1,044	835	936	843
Number of employees at the end of the period	1,071	821	1,071	821
Revenues for the year per employee			2,048	1,736

1 The calculation included the item of non-interest-bearing liabilities amounting to KSEK 1,228 (846).

Net sales according to business model

MSEK	Jan–Dec 2021					Jan–Dec 2020
	BTS North America	BTS Europe	BTS Other markets	APG	Total	BTS North America	BTS Europe	BTS Other markets	APG	Total
Programs	548	245	361	90	1,244	290	171	245	77	783
Development	268	80	113	0	462	267	114	92	0	473
Licenses	132	26	16	29	203	122	25	20	18	185
Other revenue	2	2	4	1	8	10	5	7	0	23
TOTAL	949	353	493	121	1,917	689	316	363	95	1,464

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

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India

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

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Japan

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Malaysia

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Mexico

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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

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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

Wonseo Building Room 103, 1st Floor 13, Changdeokgung 1-gil Jongnogu Seoul 03058 Tel: +82 2 539 7676

Switzerland

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Taiwan

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Thailand

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UK

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USA

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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

Strategy made

personal