BTS Group

Quarterly Report • May 13, 2014

BTS Group AB (publ) Interim report January 1–March 31, 2014 Q1

Turnover and earnings increased during the first quarter

• Net turnover amounted to MSEK 154.2 (146.2). Adjusted for changes in foreign exchange rates, growth was 6 percent.
• Profit before tax increased to MSEK 8.5 (1.4).
• Profit after tax increased to MSEK 5.9 (1.0).
• Earnings per share increased to SEK 0.32 (0.06).
• During the quarter, new offices were opened in Dubai and in Rome.
• Significant investments and innovations in BTS Digital.
• New clients secured during the first quarter included Bloomberg, Diaverum, Google, Hilton Hotels, Sharp and Twitter.

NET TURNOVER AND PROFIT BEFORE TAX Rolling 12 months

Vision

"The global leader in accelerating strategic alignment and execution – innovating how organizations learn, change and improve."

BTS is a world leading strategy implementation firm. The company accelerates execution by ensuring the workforce is aligned to the strategy, has the right mindset, and has mastered the capabilities needed to deliver business results. BTS leverages customized business simulations and experiential learning initiatives to develop the business acumen, leadership and sales capabilities necessary for superior strategy execution. Partnering with today's leading corporations, BTS consultants bring passion and deep industry expertise to deliver high-impact solutions that help clients achieve better results, faster.

Headquartered in Stockholm, Sweden, BTS has more than 350 professionals in 29 offices located on six continents. Partnering with nearly 400 organizations, including more than 30 of the world's largest corporations, BTS's major clients are some of the most respected names in business: Anglo American, AT&T, Chevron, Coca-Cola, Ericsson, HP, Rio Tinto, Telefonica, and Unilever.

BTS is a public company listed on the NASDAQ-OMX Stockholm exchange and trades under the symbol BTS b.

1 | BTS Interim report january–march 2014 BTS Interim report january–march 2014 | 1

CEO COMMENTS

Several good pieces of news during the first quarter

The good earnings trend is continuing in BTS Europe. Meanwhile, we are increasing our presence through an office in Rome in order to meet demand from a number of Italian companies.

BTS Other markets is showing good growth and increased earnings, and the previous challenges in Australia have been handled successfully and the operations there are now performing positively.

In North America, which has shown significant negative growth during the past six quarters, we are levelling out.

We are making significant investments in BTS Digital and are releasing several new innovations, which means that BTS digital solutions will be even more effective and can be delivered to all leading digital platforms.

We expect that earnings in 2014 will be substantially better than during 2013.

Stockholm May 13, 2014

Henrik Ekelund President and CEO of BTS Group AB (publ)

Operations

Turnover

BTS' net turnover during the first quarter amounted to MSEK 154.2 (146.2). Adjusted for changes in foreign exchange rates, growth was 6 percent.

Growth varied among the units: BTS Other markets 17 percent, BTS Europe 8 percent, APG 3 percent and BTS North America 2 percent (growth figure measured in local currencies).

Earnings

Operating profit before amortization of intangible assets (EBITA) amounted to MSEK 9.0 (1.8) during the first quarter. Operating profit during the first quarter was affected by MSEK 0.5 (0.3) for amortization of intangible assets attributable to acquisitions. Operating profit (EBIT) increased during the first quarter to MSEK 8.5 (1.5).

The operating margin before amortization of intangible assets (EBITA margin) was 6 (1) percent. The operating margin (EBIT margin) was 5 (1) percent.

The group's profit before tax for the first quarter increased to MSEK 8.5 (1.4).

Earnings were positively impacted by improved earnings in all operative units.

Market development

The market in early 2014 has been characterized to some extent by increased optimism and willingness to invest among BTS clients.

Assignments and new clients

New clients secured during the first quarter included Bloomberg, Diaverum, Google, Hilton Hotels, Sharp and Twitter.

BTS Digital

BTS Digital has made substantial progress during the first quarter. A large number of solutions have been transferred into BTS Digital's new HTML-based platform. It was acquired in connection with the acquisition of the Danish company Wizerize during 2013, and has been advanced by BTS Digital. This advancement means that BTS can offer simulations and training programs for all types of platforms, including tablets and smartphones. Furthermore, the solutions can, in accordance with the customer's choice, be delivered in classroom format or in large meetings with thousands of participants depending on the preference of the client. Several major client projects were successfully delivered using this new technology, which is creating great opportunities. BTS Digital will continue to invest during 2014 and will expand and improve its range of digital solutions.

REVENUE BY QUARTER

PROFIT BEFORE TAX BY QUARTER

NET TURNOVER BY SOURCE OF REVENUE JANUARY 1–March 31, 2014 (2013)

PROFIT BEFORE TAX AND OPERATING MARGIN (EBITA) BY QUARTER

NET TURNOVER PER OPERATIVE UNIT 1 january–31 march 2014 (2013)

Operative units

BTS North America consists of BTS' operations in North America excluding APG.

BTS Europe consists of the operations in Belgium, Finland, France, Italy, the Netherlands, Spain, Sweden, the UK and Germany.

BTS Other markets consists of the operations in Australia, Brazil, China, Dubai, India, Japan, Mexico, Singapore, South Africa, South Korea, Taiwan and Thailand.

APG consists of the operations in Advantage Performance Group (APG).

Net turnover per operative unit

MSEK	Jan–March 2014	Jan–March 2013	April–March 2013/14	Jan–Dec 2013
BTS North America	67.8	66.1	313.2	311.5
BTS Europe	39.7	35.6	166.9	162.8
BTS Other markets	24.4	23.0	123.8	122.4
APG	22.3	21.5	92.3	91.5
Total	154.2	146.2	696.2	688.2

Operating profit before amortization of

intangible assets (EBITA) per operative unit

	Jan–March	Jan–March	April–March	Jan–Dec
MSEK	2014	2013	2013/14	2013
BTS North America	3.4	1.8	37.2	35.6
BTS Europe	5.7	3.8	28.6	26.7
BTS Other markets	–0.4	–2.7	12.1	9.8
APG	0.3	–1.1	0.8	–0.6
Total	9.0	1.8	78.7	71.5

BTS North America

Net turnover for BTS' North American operations amounted to MSEK 67.8 (66.1) during the first quarter. Adjusted for changes in foreign exchange rates, revenue increased by 2 percent. Operating profit before amortization of intangible assets (EBITA) amounted to MSEK 3.4 (1.8) during the first quarter. The operating margin before amortization of intangible assets (EBITA margin) was 5 (3) percent.

After six quarters with declining revenue and earnings, BTS North America is levelling out.

BTS Europe

Net turnover for BTS Europe amounted to MSEK 39.7 (35.6) during the first quarter. Adjusted for changes in foreign exchange rates, revenue increased by 8 percent. Operating profit before amortization of intangible assets (EBITA) amounted to MSEK 5.7 (3.8) during the first quarter. The operating margin before amortization of intangible assets (EBITA margin) was 14 (11) percent.

BTS Europe is continuing to perform positively. Earnings increased by 51 percent during the first quarter.

BTS Other markets

Net turnover for BTS Other markets amounted to MSEK 24.4 (23.0) during the first quarter. Adjusted for changes in foreign exchange rates, revenue increased by 17 percent. Operating profit before amortization of intangible assets (EBITA) amounted to MSEK –0.4 (–2.7) during the first quarter. The operating margin before amortization of intangible assets (EBITA margin) was –2 (–12) percent.

The performance in BTS Other markets has been positive without exception with 17 percent growth and a significant improvement in earnings. We noted, among other things, a major improvement in revenue, earnings and new business in Australia, and we now expect the positive performance there to continue in the longer term.

APG

Net turnover during the first quarter amounted to MSEK 22.3 (21.5). Adjusted for changes in foreign exchange rates, revenue increased by 3 percent. Operating profit before amortization of intangible assets (EBITA) amounted to MSEK 0.3 (–1.1) during the first quarter. The operating margin before amortization of intangible assets (EBITA margin) was 1 (–5) percent.

During the quarter, a new President and CEO was appointed for APG; Jonathan Hodge, who is from the US. The previous CEO, Annika McCrea, is moving to Europe, where she will be responsible for BTS' Sales practice.

Financial position

BTS' cash flow from operating activities amounted to MSEK –16.7 (–39.3) during the first quarter.

Available cash and cash equivalents amounted to MSEK 92.8 (59.7) at the end of the period. The company's interest-bearing loans amounted to MSEK 0 (0) at the end of the period.

BTS' solidity was 75 (72) percent at the end of the period. The company had no outstanding convertible loans at the balance sheet date.

Employees

The number of employees in BTS Group as of March 31 was 380 (382).

The average number of employees during the first quarter was 379 (385).

Parent Company

The company's net turnover amounted to MSEK 0.2 (0.3) and the profit after net financial items amounted to MSEK –0.3 (0). Cash and cash equivalents amounted to MSEK 4.5 (5.5).

Outlook for 2014

Profit before tax is expected to be substantially better than the previous year.

Risks and uncertainties

The group's material risks and uncertainties include market and business risks, operational risks as well as financial risks. Business and market risks may relate to larger customer exposures to particular sectors and companies as well as sensitivity to market conditions. Operational risks relate to dependence on people, supply of competence and intellectual property and that BTS meets the high demands imposed by clients in respect of quality. Financial risks mainly relate to foreign exchange and credit risks.

The management of risks and uncertainties is described in the Annual Report for 2013. BTS is considered to have a good diversification of risks as regards companies and sectors and the operational risks are deemed to be managed in a structured manner through well-established processes. The day-to-day exposure to changes in exchange rates is limited since revenues and costs mainly relate to the same currency in each market and the credit risk is limited as BTS only accepts creditworthy counterparties. No new material risks or uncertainties are deemed to have arisen during 2014.

Critical estimates and assumptions

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

Accounting policies

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 adopted by the EU, RFR 1 Supplementary Accounting Rules for Groups and the Swedish Annual Accounts Act. The parent company's statements are prepared in accordance with RFR 2, Accounting for Legal Entities and the Annual Accounts Act. New or revised IFRS and interpretations from IFRIC have not had any effect on the group's or the parent company's results of operations or financial position.

Future reporting dates

Interim report April–June August 19, 2014 Interim report July-September November 6, 2014 Year-end report 2014 February 2015

Stockholm, May 13, 2014

Henrik Ekelund Chief Executive Officer

This report has not been reviewed by BTS' auditor.

Contact information

Henrik Ekelund President and CEO Phone: +46 8 587 070 00 Stefan Brown CFO Phone: +46 8 587 070 62 Thomas Ahlerup Senior Vice President, Phone: +46 8 587 070 02 Investor and Corporate Communications Mobile: +46 768 966 300

For additional information visit our website www.bts.com

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

GROUP INCOME STATEMENT, SUMMARY

KSEK	Jan–March 2014	Jan–March 2013	April–March 2013/14	Jan–Dec 2013
Net turnover	154,241	146,182	696,293	688,234
Operating expenses	–143,787	–142,985	–611,241	–610,439
Depreciation tangible assets	–1,503	–1,413	–6,357	–6,267
Amortization intangible assets	–497	–338	–1,844	–1,685
Operating profit	8,454	1,446	76,850	69,842
Financial income and expenses	69	–39	–52	–159
Profit before tax	8,523	1,407	76,799	69,683
Taxes	–2,632	–364	–24,116	–21,848
Profit for the period	5,891	1,043	52,683	47,835
attributable to equity holders of the parent	5,891	1,043	52,683	47,835
Earnings per share, before dilution of shares, SEK	0.32	0.06	2.83	2.57
Number of shares at end of the period	18,589,870	18,245,365	18,589,870	18,589,870
Average number of shares before dilution of shares	18,589,870	18,155,715	18,417,618	18,589,870
Earnings per share, after dilution of shares, SEK	0.32	0.06	2.79	2.57
Average number of shares after dilution of shares	18,589,870	18,605,365	18,867,268	18,589,870
Proposed dividend per share, SEK				1.75

GROUP STATEMENT OF COMPREHENSIVE INCOME

KSEK	Jan–March 2014	Jan–March 2013	April–March 2013/14	Jan–Dec 2013
Profit for the period	5,891	1,043	52,683	47,835
Items that will not be reclassified to Income Statement	–	–	–	–
	–	–	–	–
Items that might be reclassified to Income Statement
Income/expenses in shareholders' equity	1,531	–6,108	1,230	–6,409
Other comprehensive income for the period, net of tax	1,531	–6,108	1,230	–6,409
Total comprehensive income for the period	7,422	–5,065	53,913	41,426
attributable to equity holders of the parent	7,422	–5,065	53,913	41,426

GROUP BALANCE SHEET, SUMMARY

KSEK	31 March 2014	31 March 2013	31 Dec 2013
Assets
Goodwill	143,000	134,695	143,033
Other intangible assets	16,424	14,808	16,603
Tangible assets	13 316	15,169	13,716
Other fixed assets	7,444	7,177	8 089
Accounts receivable	123,328	133,455	155,980
Other current assets	87,219	89,409	72 614
Cash and cash equivalents	92,765	59,699	108,833
Total assets	483,497	454,412	518,868
Equity and liabilities
Equity	363,204	328,257	355,783
Non interest bearing – non current liabilities	193	739	213
Non interest bearing – current liabilities	120,100	125,416	162,873
Total equity and liabilities	483,497	454,412	518,868

GROUP CASH FLOW STATEMENT, SUMMARY

Liquid funds, closing balance	92,765	59,699	108,833
Effect of exchange rate changes on cash	1,342	–2,091	–5,399
Liquid funds, opening balance	108,833	94,910	94,910
Change in liquid funds	–17,410	–33,120	19,323
Cash flow from financing operations	–52	6,822	–12,638
Cash flow from investment activities	–705	–622	–15,674
Cash flow from current operations	–16,653	–39,320	47,635
KSEK	Jan–March 2014	Jan–March 2013	Jan–Dec 2013

GROUP CHANGES IN CONSOLIDATED EQUITY

KSEK	Total equity 31 March 2014	Total equity 31 March 2013	Total equity 31 Dec 2013
Opening balance	355,783	326,563	326,563
Dividend to shareholders	–	–	–32,184
New share issue	–	6,760	19,977
Other	–1	–1	2
Total comprehensive income for the period	7,422	–5,065	41,426
Closing balance	363,204	328,257	355,783

GROUP CONSOLIDATED KEY RATIOS

	Jan–March 2014	Jan–March 2013	April–March 2013/14	Jan–Dec 2013
Net turnover, KSEK	154,241	146,182	696,293	688,234
EBITA (Profit before interest, tax and amortization), KSEK	8,951	1,784	78,695	71,528
EBIT (Operating profit), KSEK	8,454	1,446	76,850	69,842
EBITA margin (Profit before interest, tax and amortization margin), %	6	1	11	10
EBIT margin (Operating margin ), %	5	1	11	10
Profit margin, %	4	1	8	7
Operational capital, KSEK			270,439	246,949
Return on equity, %			15	14
Return on operational capital, %			30	29
Solidity at end of the period, %	75	72	75	69
Cash flow, KSEK	–17,410	–33,120	35,033	19,323
Liquid funds at end of the period, KSEK	92,765	59,699	92,765	108,833
Average number of employees	379	385	378	376
Number of employees at end of the period	380	382	380	370
Revenues for the year per employee, KSEK			1,844	1,830

PARENT COMPANY'S INCOME STATEMENT, SUMMARY

	Jan–March	Jan–March	April–March	Jan–Dec
KSEK	2014	2013	2013/14	2013
Net turnover	225	275	1,775	1,825
Operating expenses	–541	–258	–2,096	–1,813
Operating profit	–316	17	–321	12
Financial income and expenses	4	2	14,268	14,266
Profit before tax	–312	19	13,947	14,278
Taxes	–	–	–682	–682
Profit for the period	–312	19	13,265	13,596

PARENT COMPANY'S BALANCE SHEET, SUMMARY

KSEK	31 mars 2014	31 mars 2013	31 dec 2013
Assets
Financial assets	101,976	101,976	101,976
Other current assets	197	3,542	52
Cash and cash equivalents	4,469	5,454	5,013
Total assets	106,643	110,972	107,042
Equity and liabilities
Equity	104,686	110,387	104,998
Liabilities	1,957	585	2,045
Total equity and liabilities	106,643	110,972	107,042

DEFINITIONS

Earnings per share

Earnings attributable to the parent company´s shareholders divided by number of shares.

EBITA margin (Profit before interest, tax and amortization margin) Operating profit before interest, tax and amortization as a percentage of revenues.

EBIT margin (Operating margin) Operating profit after depreciation as a percentage of revenues.

Profit margin

Profit for the period as a percentage of revenues.

Operational capital

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

Return on equity

Profit after tax as a percentage of average equity.

Return on operational capital

Operating profit as a percentage of average operational capital.

Solidity

Equity as a percentage of total balance sheet.

The global leader in accelerating strategic alignment and execution

BTS is the world leader in customized business simulations and other discovery learning solutions that enable leading organizations to learn, change and improve. The unique BTS process offers fast strategic alignment and rapid capability building to accelerate execution and to improve business results.

Vision

"The global leader in accelerating strategic alignment and execution – innovating how organizations learn, change and improve."

Mission

"We build commitment and capability to accelerate strategy execution and improve business results."

Value Proposition

"We deliver better results, faster. The unique BTS process offers fast strategic alignment and rapid capability building.

Our key differentiators:

• • Simulations and experientialsolutions the most effective way to help organizations understand, align and execute on strategies and business initiatives.
• • In-depth customization to whatisrelevant and actionable on the job.
• • A results-focused approach that comprehensively and efficiently secures and measures business impact."

Financial Goals

BTS' financial goals shall over time be:

• • An organic growth, adjusted for changesin exchange rates, of 20 percent.
• An EBITA margin of 15 percent.
• An equity ratio that does notfall below 50 percent over extended periods.

BTS STOCKHOLM

Grevgatan 34 114 53 Stockholm Sweden Tel. 08 58 70 70 00 Fax. 08 58 70 70 01

BTS AMSTERDAM

Rieker business park John M. Keynesplein 13 1066 EP Amsterdam The Netherlands Tel. + 31 (0)20 615 15 14 Fax. +31 (0)20 388 00 65

BTS AUSTIN

401 Congress Avenue, Suite 1510 Austin, Texas 78701 USA Tel. +1 512 474 1416 Fax. +1 512 474 1433

BTS BANGALORE

Vatika Business Center Divyasree Chambers, 2nd floor, Wing A O'Shaugnessy Road, Langford Town Bangalore 560025 India Tel. + 91 80 4291 1111 (Ext: 116)

BTS BANGKOK

128/27 Phyathai Plaza Building (4th Floor) Phyathai Rd. Kwaeng Thung Phyathai Khet Ratchathewi Bangkok 10400 Thailand Tel. +66 2 216 5974

BTS BILBAO c/o Simon Bolivar 27-1º, oficina nº 4 48013 Bilbao Spain Tel. +34 94 423 5594 Fax. +34 94 423 6897

BTS BRUSSELS

Rue d'Arenberg 44 1000 Brussels Belgium Tel. +32 (0) 2 27 415 10

BTS CHICAGO 200 South Wacker Drive Suite 925 Chicago, IL 60606 USA Tel. +1 312 509 4750 Fax. +1 312 509 4781

BTS HELSINKI

Korkeavuorenkatu 47 B 00130 Helsinki Finland Tel. +358 9 8622 3600 Fax. +358 9 8622 3611

BTS JOHANNESBURG

267 West Avenue, 1st Floor 0046 Centurion, Gauteng South Africa Tel. +27 12 663 6909 Fax. +27 12 663 6887

BTS LONDON

37 Kensington High Street London W8 5ED UK Tel. +44 207 348 18 00 Fax. +44 207 348 18 01

BTS LOS ANGELES

2029 Century Park East Suite 1400 Los Angeles, CA 90067 USA Tel. +1 424 202 6952

BTS MADRID

Calle José Abascal 42, 2º dcha 28003 Madrid Spain Tel. +34 91 417 5327 Fax. +34 91 555 2433

BTS MELBOURNE

198 Harbour Esplanade, Suite 404 Docklands VIC 3008 Australia Tel. +61 3 9670 9850 Fax. +61 3 9670 9569

BTS MEXICO CITY

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

BTS MUMBAI

1404 and 1405A, 14th Floor, DLH Park, Opposite MTNL Staff quarters, S.V. Road, Goregaon (West), Mumbai - 400062 Maharashtra, India Tel. +91 22 6196 6800

BTS MUNICH

Theresienhoehe 28 80339 Munich Germany Tel. +49 89 244 40 7036

BTS NEW YORK

60 E. 42nd Street, Suite 2434 New York, NY, 10165 USA Tel. +1 646 378 3730 Fax. +1 646 378 3731

BTS PARIS

57, rue de Seine 75006 Paris France Tel. +33 1 40 15 07 43

BTS PHILADELPHIA

6 Tower Bridge, Suite 540 181 Washington Street Conshohocken, PA 19428 USA Tel. (toll free) +1 800 445 7089 Tel. +1 484 391 2900 Fax. +1 484 391 2901

BTS ROME

Rome Barberini centre Via Antonio Salandra, 18 0018 Rome – Italy Tel: +39 06 4227 2308 Fax: +39 06 4227 4000

BTS SAN FRANCISCO

456 Montgomery Street, Suite 900 San Francisco, CA 94104 USA Tel. +1 415 362 42 00 Fax. +1 415 362 42 70

BTS SAO PAULO

Rua Geraldo Flausino Gomes, 85, 4o andar Brooklin Novo 04575-060 Sao Paulo-SP Brazil Tel. +55 11 5505 2070 Fax. +55 11 5505 2016

BTS SCOTTSDALE

9455 E. Ironwood Square Drive, Ste. 100 Scottsdale, AZ 85258 USA Tel. +1 480 948 2777 Fax. +1 480 948 2928

BTS SEOUL

1220 24 Sajik-ro 8 gil Jongno Gu – Seoul South Korea 110-871 Tel. +82 2 539 7676 Fax. +82 2 2233 4451

BTS SHANGHAI

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

BTS SINGAPORE

110 Amoy Street #02-00 Singapore 069930 Tel. +65 6221 2870 Fax. +65 6224 2427

BTS STAMFORD

300 First Stamford Place Stamford, CT 06902 USA Tel. +1 203 316 2740 Fax. +1 203 316 2750

BTS SYDNEY

Suite 2, Level 9, 39 Martin Place Sydney, NSW, 2000, Australia Tel. +61 02 8243 0900 Fax. +61 02 9299 6629

BTS TAIPEI

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

BTS TOKYO

Kojimachi Brighton Bldg 2F 6-4-17 Kojimachi Chiyoda-ku, Tokyo 102-0082,Japan Tel. +102-0083 6272 9973 Fax. +102-0083 6672 9974

ADVANTAGE

PERFORMANCE GROUP 700 Larkspur Landing Circle, Suite 125 Larkspur, CA 94939 USA Tel. +1 800 494 6646 Fax. +1 415 925 9512