Image Systems

Interim / Quarterly Report • Jul 17, 2025

Q2 REPORT JANUARY 1 – JUNE 30, 2025

Increased net sales despite challenging market conditions

Even though market conditions remain challenging, both of the Group's business units reported increased net sales in the second quarter. However, order intake was negatively affected by a cautious willingness to invest, resulting in longer sales cycles.

The Group's operating profit decreased, which is partly explained by the Motion Analysis business unit's successful transition to a subscription-based business model. Although this transition will result in lower sales temporarily, it will provide a more stable revenue stream with good margins in the long run. The RemaSawco business unit reported stable earnings for the quarter. The gross margin in deliveries from the business unit was slightly lower due to the product mix with a larger share of hardware.

Our continued strategy is to invest in market presence and in the product portfolios within both of our business units in order to strengthen our long-term position in key markets. We are conducting an increasing proportion of our sales through our own sales and service companies, which will lead to improved profitability and growth.

Second quarter April–June	Interim period January–June
•	•
Order intake amounted to MSEK 26.8 (37.3)	Order intake amounted to MSEK 57.7 (93.4)
•	•
Net sales amounted to MSEK 49.5 (44.3)	Net sales amounted to MSEK 88.5 (82.5)
•	•
Gross margin amounted to 63 (67) percent	Gross margin amounted to 67 (68) percent
•	•
EBITDA amounted to MSEK 2.7 (4.1)	EBITDA amounted to MSEK 5.5 (8.5)
•	•
Earnings per share was SEK -0.04 (0.00)	Earnings per share was SEK -0.07 (0.00)

	Apr–	Apr–	Jan–	Jan–	Full
	June	June	June	June	year
	2025	2024	2025	2024	2024
Order intake, MSEK	26.8	37.3	57.7	93.4	228.5
Order backlog, MSEK	84.6	83.4	84.6	83.4	117.5
Net sales, MSEK	49.5	44.3	88.5	82.5	184.9
Capitalized development expenditure, MSEK	2.3	4.1	5.6	7.3	14.9
Gross margin, %	63	67	67	68	68
EBITDA, MSEK	2.7	4.1	5.5	8.5	26.8
EBITDA margin, %	5.2	8.5	5.8	9.5	13.4
Operating profit (EBIT), MSEK	-3.6	-0.5	-6.1	-0.4	8.8
Profit after tax, MSEK	-3.5	-0.3	-6.0	-0.4	8.6
Cash flow from operating activities, MSEK	-9.6	12.9	6.5	21.5	39.2
Solidity, %	57	59	57	59	55
Average number of employees	73	70	74	69	72
Earnings per share	-0.04	0.00	-0.07	0.00	0.10

CEO's comments

Emilien Saindon

CEO and President

Continued stability in both business units

During the second quarter, which was characterized by ongoing market challenges, we continued to deliver effective solutions to our customers while focusing on strengthening our presence in priority markets. Net sales increased to MSEK 49.5 (44.3) As a result of more cautious investment processes, order intake declined to MSEK 26.8 (37.3), while the current market situation with reduced order intake means that we are now supplementing our offering in order to focus on products and customer needs with short sales cycles. We have a healthy order backlog of MSEK 84.6 (83.4).

Gross margin amounted to 63 percent (68), while EBITDA amounted to MSEK 2.7 (4.1). The operating profit continued to be impacted by the ongoing transition to a subscription-based business model for Motion Analysis and by the product mix in RemaSawco's deliveries. In addition, we have lower capitalized development expenses in favor of generic development, including those in AI.

Challenging market for RemaSawco

RemaSawco delivered continued stable earnings in the second quarter with increased net sales of MSEK 42.4 (37.8) and an EBITDA margin of 15.7 percent (18.6). The reduction in margin is explained by the product mix, which during this quarter included a large share of hardware.

We are now intensifying our market presence, with increased focus on service offerings, upgrade projects, and customer-oriented solutions that support both short-term sales and long-term relationships.

The wood products market has continued to show weak growth, with limited construction activity in both Europe and the US. Prices for raw materials have continued to rise and uncertainty surrounding tariffs remains. As a result, the optimism noted earlier this year has diminished, leading to restraint in investment decisions. However, we stand by our assessment that sawmills will continue to prioritize

investments in streamlining and optimizing their production processes.

Motion Analysis well equipped

Caution among our customers persisted during the quarter; however, we are seeing clear signs of increased activity as a result of our enhanced marketing efforts. Our key segments, such as the defense and automotive industries, are expected to have a continued growing need for our solutions.

The subscription-based business model has been implemented according to plan to achieve a more even revenue stream over time and generate higher margins. Almost all of the quarter's order intake is subscription-based, and the gradually increasing order backlog amounted to MSEK 33.5 at the end of the quarter, despite negative currency effects on existing agreements.

In parallel, we have continued the transition to direct sales in selected markets by phasing out local distributors in favor of establishing our own sales and service companies, such as in the US and Japan. The aim is to drive growth and achieve higher profitability in the long term through an increased local presence.

During the quarter, we carried out the commercial launch of our new software platform, which has been well received by the market.

Constant initiatives strengthen Group's outlook

The development of the Group is proceeding according to our established plans. While the market situation has impacted order intake, especially in RemaSawco, we see continued strength in our underlying business models and we continue to develop and streamline our operations. The subscription-based business model within Motion Analysis will continue to affect earnings for a period, fully in line with what we have previously communicated. However, we believe that in the long run, this business model will lead to more stable revenues, higher margins and thus greater financial predictability over time.

Within RemaSawco, the focus is on strengthening market presence by, among other things, adapting our product offering to customers' current needs and shorter sales cycles.

We are making a major effort to integrate AI into our operations. Generative AI enables us to increase product capacity and develop new functionality, while also creating good opportunities to streamline both of our operations further.

THE GROUP'S DEVELOPMENT IN THE SECOND QUARTER

Order intake, net sales and profit

Order intake amounted to MSEK 26.8 (37.3). Order backlog as of June 30, 2025, amounted to MSEK 84.6 (83.4).

Net sales amounted to MSEK 49.5 (44.3). Capitalized development expenditure amounted to MSEK 2.3 (4.1) and relates to both business units.

Gross margin amounted to 63 (67) percent.

EBITDA amounted to MSEK 2.7 (4.1).

Other external charges decreased compared with the corresponding period last year, mainly due to a decrease in external consultancy costs. Personnel costs increased compared to last year's period, which is attributed to an exchange of skills and an increase in the number of employees.

Depreciation/amortization amounted to MSEK -6.3 (-4.6). During the year, we have begun depreciation/amortization of several development projects in connection with commercial launch.

Net financial items amounted to MSEK -0.1 (-0.0).

Result after taxes amounted to MSEK -3.5 (-0.3).

Financial position, investments and cash flow

The Group's investments in non-current assets during the quarter amounted to MSEK 4.2 (7.4) of which MSEK 2.3 (4.1) was related to capitalized development projects. Capitalization of development projects takes place in both business units.

The operational cash flow during the quarter amounted to MSEK -13.8 (5.5). The lower order intake means a lower proportion of advances from customers. Solidity as of June 30, 2025, amounted to 57 (59) percent. Net indebtedness amounted to 0.1 (0.1) times.

Available cash and cash equivalents including the undrawn part of the overdraft facilities amounted to MSEK 22.2 (26.0) as of June 30, 2025.

THE GROUP'S DEVELOPMENT DURING THE INTERIM PERIOD

Order intake amounted to MSEK 57.7 (93.4). Order backlog as of June 30, 2025, amounted to MSEK 84.6 (83.4).

Net sales amounted to MSEK 88.5 (82.5). Capitalized development expenditure amounted to MSEK 5.6 (7.3) and relates to both business units.

Gross margin amounted to 67 (68) percent.

EBITDA amounted to MSEK 5.5 (8.5). Other external charges decreased, which mainly is attributable to an increase in capitalized external consultancy costs related to the RemaSawco business unit's product development. Personnel costs increased as a result of the expansion of our own operations in North America.

Depreciation/amortization amounted to MSEK -11.6 (-8.9). During the year, we have begun depreciation/amortization of several development projects in connection with commercial launch. Net financial items amounted to MSEK -0.2 (-0.3).

Result after taxes amounted to MSEK -6.0 (-0.4).

ROLLING 12-MONTH ORDER INTAKE, REVENUE AND EBITDA

The Group's rolling 12-month EBITDA margin during the second quarter amounted to just over 11.7 percent. The Group's long-term EBITDA target of delivering a stable 15 percent EBITDA margin requires growth in net sales. The pace of the ongoing change in the Motion Analysis business unit, to a higher proportion of subscription and support agreements, may also affect how quickly the long-term goal is achieved. The changed business model will eventually translate into growth in both net sales and EBITDA results.

BUSINESS UNIT: REMASAWCO

RemaSawco provides solutions to optimize production in the sawmill industry. The product portfolio includes proprietary software that, with the help of laser, 3D scanning, X-ray, and automation, measures and analyzes timber and boards throughout the sawmill process to maximize value exchange, minimize waste, and thus increase customer profitability.

Performance during the period

Order intake remained weak during the second quarter and amounted to MSEK 16.2 (26.8). However, following a period of lower market activity in the past six months, we are seeing signs of increased customer interest, which is reflected in a gradually stronger sales funnel. We are currently intensifying our marketing efforts, with an increased focus on strengthening our presence among both existing and new customers. Particularly, we are investing in our SLA service offering, upgrade packages and smaller projects that can contribute to business in the short term, while also creating opportunities for larger deliveries in the future. Net sales increased to MSEK 42.4 (37.8), while EBITDA decreased slightly to MSEK 6.8 (7.4) and the margin fell to 15.7% (18.6), partly due to a hardware-heavy product mix during the period.

	Apr–	Apr–	Jan–	Jan–	Full
	June	June	June	June	year
	2025	2024	2025	2024	2024
Order intake, MSEK	16.2	26.8	38.4	70.0	165.9
Net sales, MSEK	42.4	37.8	70.7	64.8	146.8
Capitalized development expenditure, MSEK	0.8	1.9	2.0	3.2	6.9
EBITDA, MSEK	6.8	7.4	11.4	9.0	28.0
EBITDA margin, %	15.7	18.6	15.7	13.2	18.2

Product development

During the quarter, we have worked on updating existing products and advancing the development our X-ray scanner. Our new log scanner has been put into operation in several customer installations, and we are now planning to launch the new operator interface. The incremental product development for the new measuring station has been successful, and we are now applying the method to more products. We are making ongoing investments in product development, aiming, among other things, to increase the scalability of our products. Additionally, we are further developing key functions for digitalization and optimization of sawmill processes. During the quarter, a working group was appointed to focus on generative AI.

By integrating AI support into our product development, we create the conditions for adding new functionality and launching new products at a pace that was previously impossible. This initiative is part of our long-term strategy to remain at the forefront of technology and meet our customers' needs with both precision and speed.

BUSINESS UNIT: MOTION ANALYSIS

Motion Analysis Systems offers its customers software for the analysis of high-speed film, a niche where the Company is the world leader. The software is sold under the product names TEMA and TrackEyeⓇ.

Performance during the period

The caution we saw in the market during the first quarter has persisted, and it is taking longer to execute deals. However, the market eased somewhat during the quarter and we note an order intake in line with the previous year at MSEK 10.6 (10.5). The need for our products is expected to grow in both the defense and automotive segments in the coming years. The order intake mainly consists of subscription licenses, which often initially span 36 months and are then automatically extended by

12 months at a time. The order backlog attributable to subscription and support services is growing steadily and amounted to MSEK 33.5 (14.3) at the end of the quarter, however, still negatively affected by currency effects. Net sales for the first half of the year amounted to MSEK 17.8 (17.7). The business unit is investing in enhancing market presence and product development and, during the quarter, established a sales and service company in Japan with the aim of generating growth through direct sales. This will generate costs that, after an initial establishment phase, are expected to lead to increased sales revenue.

The new software platform is a cornerstone of the Company's growth strategy, with the ambition to become the global standard in high-speed film analysis. The platform, which was launched commercially during the second quarter, will gradually take over all existing functionality from older products and will be an important engine for growth.

	Apr–	Apr–	Jan–	Jan–	Full
	June	June	June	June	year
	2025	2024	2025	2024	2024
Order intake, MSEK	10.6	10.5	19.3	23.4	62.6
Order backlog subscription and support	33.5	14.3	33.5	14.3	31.8
services, MSEK
Net sales, MSEK	7.1	6.5	17.8	17.7	38.1
Capitalized development expenditure, MSEK	1.5	2.2	3.6	4.1	8.0
EBITDA, MSEK	-1.5	-1.8	-2.2	2.3	5.1
EBITDA margin, %	-17.4	-20.7	-10.3	10.6	11.1

Product development

The business unit carried out the commercial release of the new software platform during the second quarter. New features in generative object tracking have been implemented using proprietary AI models. The Company has also implemented support for Python programming, which is estimated to provide significant added value to the existing customer base and facilitate sales to new customers.

OTHER INFORMATION

Parent Company

The Parent Company's revenue for the first quarter amounted to MSEK 1.5 (0.8). Operating profit amounted to MSEK -2.6 (-1.5). Result after taxes amounted to MSEK -2.6 (-1.5). Investments in fixed assets amounted to MSEK 0.0 (0.0). The Parent Company's available liquid funds as of June 30, 2025, amounted to MSEK 0.2 (0.2). The Parent Company's equity as of June 30, 2025, amounted to MSEK 113.6 (105.8) and the solidity was 98 (99) percent.

Significant events after the period

Andreas Ovemyr has been appointed new CEO of the Motion Analysis business unit and will assume his position on September 1.

The RemaSawco business unit has received an order from Holmen Kroksjön for approximately MSEK 1.1.

Personnel

The average number of employees was 73 (70). The number of employees at the end of the period was 78.

Number of shares

The number of shares on June 30, 2025, amounted to 89,207,818.

Accounting policies

Image Systems applies the International Financial Reporting Standards (IFRS) as adopted by the EU. The interim report for the Image Systems Group is prepared in accordance with IAS 34, Interim Financial Reporting, and the Swedish Annual Accounts Act. Disclosure in accordance with IAS 34, Interim Financial Reporting, is provided in notes as well as elsewhere in the interim report.

The interim report for the Parent Company, Image Systems AB, is prepared in accordance with the Swedish Annual Accounts Act as well as the Swedish Financial Reporting Board's recommendations RFR 2 Accounting for Legal Entities.

Image Systems applies the ESMA (European Securities and Markets Authority) Guidelines on Alternative Performance Measures. Definitions of indicators are provided on page 15 and relevant reconciliations on page 14.

Risks and uncertainties

The Group's significant risks and uncertainties include business risks related to agreements with customers and suppliers as well as other external factors such as currency fluctuations. The Group's significant financial and business-related risks are discussed at depth in the management report and under Note 3 in the 2024 Annual Report. No significant new or changed risks or uncertainties have been identified during the quarter.

This interim report has not been reviewed by the Company's auditors.

Financial Calendar

Interim report January–September 2025	October 24, 2025
Year-end report 2025	February 6, 2026

Long-term financial objectives

Image Systems aims to create long-term value growth for its shareholders. To achieve this, the Board of Directors has set long-term financial objectives:

EBITDA >15%

Solidity >50%

Dividend 20% of the profit after taxes

The Board of Directors and the Chief Executive Officer confirm that the interim report provides a true and fair overview of the Parent Company's and the Group's operations, financial position, and performance and describes the material risks and uncertainties facing the Parent Company and the companies included in the Group.

Linköping, Sweden, July 17, 2025

Anders Fransson	Jörgen Hermansson	Catharina Lagerstam
Chairman of the Board	Director	Director

Jan Molin Matilda Wernhoff Emilien Saindon

Director Director Chief Executive Officer

The information in this report is disclosed pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 08:00 AM on July 17, 2025.

Financial reports are available on the Company's website http://www.imagesystemsgroup.se

Questions will be answered by:

Emilien Saindon, CEO and President

telephone +46(0)13-200 100, e-mail emilien.saindon@imagesystems.se

Image Systems AB, Snickaregatan 40, 582 26 Linköping, Sweden. Corporate registration number 556319-4041

CONDENSED CONSOLIDATED INCOME STATEMENT

MSEK	Apr– June 2025	Apr– June 2024	Jan– June 2025	Jan– June 2024	Full year 2024
Net sales	49.5	44.3	88.5	82.5	184.9
Capitalized development expenditure	2.3	4.1	5.6	7.3	14.9
Total revenue	51.8	48.4	94.1	89.8	199.8
Raw materials and consumables	-18.3	-14.7	-29.2	-26.2	-58.7
Other external charges	-7.6	-9.0	-14.9	-17.4	-32.3
Personnel costs	-23.3	-20.1	-44.2	-37.7	-81.7
Depreciation/amortization of fixed intangible and tangible assets	-6.3	-4.6	-11.6	-8.9	-18.0
Other operating income		-		-	-
Other operating costs	0.1	-0.5	-0.3	0.0	-0.3
Operating profit	-3.6	-0.5	-6.1	-0.4	8.8
Net financial items	-0.1	0.0	-0.2	-0.3	-0.8
Profit/loss before tax	-3.7	-0.5	-6.3	-0.7	8.0
Tax	0.2	0.2	0.3	0.3	0.6
Profit for the period	-3.5	-0.3	-6.0	-0.4	8.6
Of which attributable to the Parent Company shareholders	-3.5	-0.3	-6.0	-0.4	8.6
Earnings per share1)	-0.04	0.00	-0.07	0.00	0.10
Diluted earnings per share1)	-0.04	0.00	-0.07	0.00	0.10
Average number of shares, thousands Average number of shares after dilution, thousands	89,207.8 89,207.8	89,207.8 89,207.8	89,207.8 89,207.8	89,207.8 89,207.8	89,207.8 89,207.8

1) Calculated on the basis of average number of shares

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

MSEK	Apr– June 2025	Apr– June 2024	Jan– June 2025	Jan– June 2024	Full year 2024
Profit for the period	-3.5	-0.3	-6.0	-0.4	8.6
Other comprehensive income
Translation differences	-0.2	0.0	-0.2	0.0	0.0
Total other comprehensive income
	-0.2	0.0	-0.2	0.0	0.0
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD
Of which attributable to Parent Company shareholders	-3.7	-0.3	-6.2	-0.4	8.6

CONDENSED CONSOLIDATED BALANCE SHEETS

MSEK	June 30, 2025	June 30, 2024	Dec 31, 2024
Fixed assets
Goodwill	36.1	36.1	36.1
Customer relations	12.8	17.1	15.0
Capitalized development expenditure	60.2	47.1	56.2
Tangible fixed assets	2.0	2.1	2.3
Right-of-use assets	14.0	19.6	17.4
Deferred tax assets	19.1	19.1	19.1
Total fixed assets	144.2	141.1	146.1
Current assets
Inventories	14.7	11.7	12.1
Trade receivables	35.2	21.6	47.7
Other receivables	8.8	8.1	7.3
Cash and cash equivalents	4.5	12.8	12.7
Total current assets	63.2	54.2	79.8
TOTAL ASSETS	207.4	195.3	225.9
Equity (attributable in full to Parent Company
shareholders)	118.4	115.6	124.6
Non-current liabilities
Lease liabilities	8.4	12.2	10.5
Deferred tax liabilities	4.6	5.2	4.9
Total non-current liabilities	13.0	17.4	15.4
Current liabilities
Borrowings from credit institutions	0.1	5.3	3.1
Trade payables	20.1	15.4	14.9
Lease liabilities	4.6	6.4	5.9
Other current payables	51.2	35.2	62.0
Total current liabilities	76.0	62.3	85.9
TOTAL EQUITY AND LIABILITIES	207.4	195.3	225.9

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

MSEK	June 30, 2025	June 30, 2024	Full year 2024
Opening balance sheet equity	124.6	116.0	116.0
Net profit for the year	-6.0	-0.4	8.6
Other comprehensive income for the period	-0.2	0.0	0.0
Total comprehensive income for the period	-6.2	-0.4	8.6
Closing balance sheet equity	118.4	115.6	124.6

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

MSEK	Apr– June 2025	Apr– June 2024	Jan– June 2025	Jan– June 2024	Full year 2024
Cash flow from operating activities before change in working capital	2.7	3.8	5.1	6.9	24.9
Change in working capital
Change in inventories	2.4	1.3	-2.6	1.5	1.0
Change in receivables	-5.9	6.7	9.6	9.4	-16.0
Change in current liabilities	-8.8	1.1	-5.6	3.7	29.3
Total change in working capital	-12.3	9.1	1.4	14.6	14.3
Cash flow from operating activities	-9.6	12.9	6.5	21.5	39.2
Investing activities
Acquisition of intangible fixed assets	-4.2	-6.6	-9.4	-11.7	-23.9
Acquisition of tangible fixed assets	0.0	-0.8	-0.3	-1.1	-1.5
Cash flow from investing activities	-4.2	-7.4	-9.7	-12.8	-25.4
Operating cash flow	-13.8	5.5	-3.2	8.7	13.8
Financing activities
Change in borrowings	-1.9	-0.3	-3.0	-0.1	-2.2
Amortization of lease liabilities	-1.8	-2.0	-2.0	-2.4	-5.5
Cash flow from financing activities	-3.7	-2.3	-5.0	-2.5	-7.7
Cash flow for the period	-17.5	3.2	-8.2	6.2	6.1
Cash and cash equivalents at the beginning of the year	22.0	9.6	12.7	6.6	6.6
Exchange rate difference on cash and cash equivalents	0.0	0.0	0.0	0.0	0.0
Cash and cash equivalents at end of period	4.5	12.8	4.5	12.8	12.7

SEGMENT REPORTING

MSEK

	Apr–	Apr–	Jan–	Jan–	Full
	June	June	June	June	year
Revenue	2025	2024	2025	2024	2024
RemaSawco	43.2	39.7	72.7	68.0	153.7
Motion Analysis	8.6	8.7	21.4	21.8	46.1
Parent Company & consolidated items	-	-			-
Total revenue	51.8	48.4	94.1	89.8	199.8
EBITDA
RemaSawco	6.8	7.4	11.4	9.0	28.0
Motion Analysis	-1.5	-1.8	-2.2	2.3	5.1
Admin & consolidated items	-2.6	-1.5	-3.7	-2.8	-6.3
EBITDA total	2.7	4.1	5.5	8.5	26.8
Depreciation/amortization of fixed
intangible and tangible assets	-6.3	-4.6	-11.6	-8.9	-18.0
Operating profit	-3.6	-0.5	-6.1	-0.4	8.8
Net financial items	-0.1	0.0	-0.2	-0.3	-0.8
Profit/loss before tax	-3.7	-0.5	-6.3	-0.7	8.0
Tax	0.2	0.2	0.3	0.3	0.6
Profit for the period	-3.5	-0.3	-6.0	-0.4	8.6

INDICATORS

	Apr–	Apr–	Jan–	Jan–	Full
	June	June	June	June	year
	2025	2024	2025	2024	2024
Order intake, MSEK	26.8	37.3	57.7	93.4	228.5
Order backlog, MSEK	84.6	83.4	84.6	83.4	117.5
Gross margin, %	63	67	67	68	68
EBITDA, MSEK	2.7	4.1	5.5	8.5	26.8
EBITDA margin, %	5.2	8.5	5.8	9.5	13.4
Operating margin, %	-6.9	-1.0	-6.5	-0.4	4.4
Profit margin, %	-7.1	-1.0	-6.7	-0.8	4.0
Return on capital employed, %	neg	neg	neg	neg	6.1
Return on equity, %	neg	neg	neg	neg	6.9
Solidity, %	57	59	57	59	55
Debt/equity ratio	0.1	0.1	0.1	0.1	0.1
Net investments in non-current assets, MSEK	4.2	7.4	9.7	12.8	25.4
Depreciation/amortization of fixed assets, MSEK	6.3	4.6	11.6	8.9	18.0
Average number of employees	73	70	74	69	72
Number of shares at the end of the period, millions	89.21	89.21	89.21	89.21	89.21
Average number of shares, millions	89.21	89.21	89.21	89.21	89.21
Earnings per share, SEK	-0.04	0.00	-0.07	0.00	0.10
Cash flow per share calculated on the basis of average number of shares, SEK	-0.15	0.06	-0.04	0.10	0.15
Equity per share calculated on the basis of number of shares at the end of the period, SEK	1.33	1.30	1.33	1.30	1.40

QUARTERLY OVERVIEW, THE GROUP

		2022	2023			2024			2025
Quarterly overview, the Group	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
Order intake, MSEK	64.7	41.8	31.4	20.5	23.8	74.3	56.1	37.3	47.1	88.0	30.9	26.8
Order backlog, MSEK	96.8	81.9	74.9	52.2	38.4	73.3	91.8	83.4	73.0	117.5	107.5	84.6
Net sales, MSEK	43.1	54.0	38.3	44.7	37.6	40.1	38.2	44.3	56.6	45.8	39.0	49.5
Capitalized development costs, MSEK	1.8	1.9	1.7	2.1	2.5	3.7	3.2	4.1	3.6	4.0	3.3	2.3
Gross margin, %	71	64	71	70	71	69	70	67	67	69	72	63
EBITDA, MSEK	12.7	9.3	2.3	4.8	4.9	3.5	4.4	4.1	17.3	1.0	2.8	2.7
EBITDA margin, %	28.3	16.6	5.8	10.3	12.2	8.0	10.6	8.5	28.7	2.0	6.6	5.2
Operating profit (EBIT), MSEK	8.1	4.6	-4.6	0.3	0.3	-1.3	0.1	-0.5	12.8	-3.6	-2.5	-3.6
EBIT margin, %	18.0	8.2	-11.5	0.6	0.7	-3.0	0.2	-1.0	21.3	-7.2	-5.9	-6.9
Return on equity, %	6.8	3.7	neg	0.1	0.1	neg	0.0	neg	10.0	neg	neg	neg
Solidity, %	59	63	62	65	69	63	61	59	60	55	55	57
Earnings per share, SEK	0.09	0.05	-0.07	0.00	0.00	-0.01	0.00	0.00	0.14	-0.04	-0.03	- 0.04
Cash flow per share, SEK	0.01	0.13	-0.08	-0.10	-0.07	0.10	0.04	0.06	-0.03	0.09	0.12	-0.15
Equity per share, SEK	1.33	1.38	1.31	1.31	1.31	1.30	1.30	1.30	1.44	1.40	1.37	1.33
Average number of shares, millions	89.21	89.21	89.21	89.21	89.21	89.21	89.21	89.21	89.21	89.21	89.21	89.21

RELEVANT RECONCILIATIONS OF NON-IFRS INDICATORS, THE GROUP

Alternative indicators

In addition to the financial indicators that are prepared in accordance with the IFRS, Image Systems presents financial indicators outside the scope of the IFRS, such as EBITDA and Net debt.

These alternative indicators are considered to be important results and performance indicators for investors and other readers of the interim report. The alternative indicators should be regarded as complementary information and not as a substitute for the financial information presented in accordance with IFRS.

Image Systems' definitions of these measures that are not defined by the IFRS are provided in the "Definitions" section of this report.

Other companies may use other definitions, and the measures may therefore not be comparable to similar indicators used by other companies.

EBITDA

Image Systems considers EBITDA to be a relevant measure for investors to be able to comprehend profit generation before investments in tangible and intangible fixed assets.

Net debt

Image Systems considers Net debt to be a relevant measure for investors to be able to comprehend the indebtedness of the Group.

EBITDA

	Apr–	Apr–	Jan–	Jan–	Full
MSEK	June	June	June	June	year
	2025	2024	2025	2024	2024
Operating profit	-3.6	-0.5	-6.1	-0.4	8.8
Depreciation/amortization of fixed
tangible and intangible assets	6.3	4.6	11.6	8.9	18.0
EBITDA	2.7	4.1	5.5	8.5	26.8

Net debt

	June 30,	June 30,	Dec 31,
MSEK	2025	2024	2024
Cash and cash equivalents	4.5	12.8	12.7
Lease liability	13.0	18.6	16.4
Interest-bearing liabilities	0.1	5.3	3.1
Net debt	8.6	11.1	6.8

DEFINITIONS

Income measures
EBITDA	Operating profit plus depreciation/amortization on tangible and intangible assets.
Margins
Gross margin, %	Net sales minus raw materials and consumables in relation to net sales.
Operating margin, %	Operating profit in relation to net sales and capitalized development expenditure.
Profit margin, %	Profit before tax in relation to net sales and capitalized development expenditure.
Return
Return on capital employed, %	Operating profit plus interest income in relation to capital employed. Capital employed comprises the balance sheet total less non-interest-bearing liabilities.
Return on equity, %	Profit/loss for the period in relation to equity.
Capital structure
Solidity, %	Equity at the end of the period in relation to the balance sheet total.
Debt/equity ratio, times	Interest-bearing liabilities at the end of the period minus cash and cash equivalents in relation to equity.
Net debt, MSEK	Interest payable minus cash and cash equivalents.
Other
Net investments in non current assets, MSEK	Net investments in both intangible and tangible fixed assets as well as financial assets during the period.
Average number of employees	Average number of employees during the period.
Data per share
Number of shares at the end of the period, in millions	Number of shares outstanding at the end of the period
Average number of shares, millions	Average number of shares during the period.
Earnings per share, SEK	Result after taxes divided by the average number of shares.
Cash flow per share, SEK	Operating cash flow divided by the average number of shares.
Equity per share, SEK	Equity divided by the number of shares at the end of the period.

	Apr–	Apr–	Jan–	Jan–	Full
MSEK	June	June	June	June	year
	2025	2024	2025	2024	2024
Net sales	1.5	0.8	2.5	1.6	3.1
Other external charges	-1.5	-1.4	-2.6	-2.5	-4.7
Personnel costs	-2.6	-0.9	-3.6	-1.9	-4.7
Other operating costs	-	-	-	-	-
Operating profit	-2.6	-1.5	-3.7	-2.8	-6.3
Net financial items	0.0	0.0	0.0	0.0	0.0
Profit/loss before tax	-2.6	-1.5	-3.7	-2.8	-6.3
Appropriations	-	-	-	-	15.0
Tax	-	-	-	-	-
Profit for the period	-2.6	-1.5	-3.7	-2.8	8.7

PARENT COMPANY'S CONDENSED INCOME STATEMENT

PARENT COMPANY'S CONDENSED STATEMENT OF COMPREHENSIVE INCOME

MSEK	Apr– June 2025	Apr– June 2024	Jan– June 2025	Jan– June 2024	Full year 2024
Profit for the period	-2.6	-1.5	-3.7	-2.8	8.7
Other comprehensive income
Total other comprehensive income	-	-	-	-	-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	-2.6	-1.5	-3.7	-2.8	8.7

PARENT COMPANY'S CONDENSED BALANCE SHEETS

MSEK	June 30, 2025	June 30, 2024	Dec 31, 2024
Fixed assets
Shares in subsidiaries	82.8	82.8	82.8
Deferred tax assets	12.0	12.0	12.0
Total fixed assets	94.8	94.8	94.8
Current assets
Trade receivables	-	-	-
Receivables from Group companies	20.4	10.7	24.6
Other current receivables	0.9	1.2	0.5
Cash and cash equivalents	0.2	0.2	0.2
Total current assets	21.5	12.1	25.3
TOTAL ASSETS	116.3	106.9	120.1
Equity (attributable in full to Parent Company shareholders)	113.6	105.8	117.3
Current liabilities
Trade payables	0.3	0.1	0.2
Liabilities to Group companies	-	0.1	-
Other current payables	2.4	0.9	2.6
Total current liabilities	2.7	1.1	2.8
TOTAL EQUITY AND LIABILITIES	116.3	106.9	120.1

PARENT COMPANY'S CONDENSED STATEMENT OF CHANGES IN EQUITY

MSEK	June 30, 2025	June 30, 2024	Full year 2024
Opening balance equity	117.3	108.6	108.6
Profit for the period	-3.7	-2.8	8.7
Other comprehensive income for the period
Total comprehensive income for the period	-3.7	-2.8	8.7
Closing balance equity	113.6	105.8	117.3

PARENT COMPANY'S CONDENSED CASH FLOW STATEMENTS

MSEK	Apr– June 2025	Apr– June 2024	Jan– June 2025	Jan– June 2024	Full year 2024
Cash flow from operating activities before change in working capital	-2.6	-1.5	-3.7	-2.8	8.7
Change in working capital
Change in receivables	-0.1	0.1	-0.4	-0.2	0.5
Change in current liabilities	0.4	-0.8	-0.1	-0.4	1.4
Total change in working capital	0.3	-0.7	-0.5	-0.6	1.9
Cash flow from operating activities	-2.3	-2.2	-4.2	-3.4	10.6
Investing activities
Change in borrowings to/from subsidiaries	2.5	2.2	4.2	3.6	-10.4
Cash flow from investing activities	2.5	2.2	4.2	3.6	-10.4
Operating cash flow	0.2	0.0	0.0	0.2	0.2
Financing activities
Change in borrowings	-	-	-	-	-
Cash flow from financing activities	0.0	0.0	0.0	0.0	0.0
Cash flow for the period	0.2	0.0	0.0	0.2	0.2
Cash and cash equivalents at the beginning of the period	0.0	0.2	0.2	0.0	0
Exchange rate difference on cash and cash equivalents	0.0	0.0	0.0	0.0	0.0
Cash and cash equivalents at end of period	0.2	0.2	0.2	0.2	0.2