BTS Group — Interim / Quarterly Report 2016

May 10, 2016

BTS GROUP AB (PUBL) Interim report January 1–March 31, 2016

Vision The global leader in turning strategy into action.

Stronger North America while oil and gas sector weighed on Europe

• • Net sales amounted to MSEK 224.1 (218.3). Adjusted for changes in foreign exchange rates growth was 4 percent.
• • Profit before tax fell by 24 percent to MSEK 8.8 (11.6).
• • Profit after tax decreased by 27 percent to MSEK 5.7 (7.8).
• • Earnings per share down 27 percent to SEK 0.31 (0.42).

NET SALES AND PROFIT BEFORE TAX

BTS is a global professional services firm headquartered in Stockholm, Sweden, with some 450 professionals in 34 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 30 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 strategy execution and talent development needs. Our services span the employee lifecycle from assessment centers for talent selection and development to strategy alignment and execution initiatives, and from business acumen, leadership and sales training programs to on-the-job business simulations and application tools. We partner with nearly 450 organizations, including over 30 of the world's 100 largest global corporations. Our major clients are some of the most respected names in business: AT&T, Chevron, Coca-Cola, Ericsson, Google, GSK, HP, HSBC, Salesforce.com, and Unilever. For more information, please visit www.bts.com. Q1

1 | BTS INTERIM REPORT JANUARY 1–MARCH 31, 2016 BTS INTERIM REPORT JANUARY 1–MARCH 31, 2016 | 1 BTS is a public company listed on the Nasdaq OMX Stockholm exchange and trades under the symbol BTS B.

CEO COMMENTS

Stronger North America while oil and gas sector weighed on Europe

Taken overall, the first quarter was not good. Currencyadjusted growth was only 4 percent, and earnings decreased. But we expect to make up for this during the year.

BTS North America gave a positive performance with growth of 11 percent and a significant increase in margins. In BTS Other Markets we achieved growth of 13 percent but margins fell due to extensive new recruitment. BTS Europe had a weak quarter with negative growth and earnings. BTS Europe experienced order cancellations from customers in the oil and gas sector, as well as from some companies with significant exposure to emerging markets.

The result before taxes for 2016 is expected to be better than last year

Stockholm, May 10, 2016

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

OPERATIONS

Sales

BTS's net sales for the first quarter totaled MSEK 224.1 (218.3) MSEK. Adjusted for changes in foreign exchange rates, growth was 4 percent.

Growth varied between the units: BTS Other Markets 13 percent, BTS North America 11 percent, BTS Europe –9 percent and APG –16 percent (growth measured in local currency).

Earnings

Operating profit before amortization of intangible assets (EBITA) decreased by 19 percent in the first quarter to MSEK 10.2 (12.6). Operating profit for the first quarter was charged with MSEK 1.1 (1.1) for amortization of intangible assets attributable to acquisitions. Operating profit (EBIT) decreased by 20 percent in the first quarter to MSEK 9.1 (11.5).

Operating margin before amortization of intangible assets (EBITA margin) was 5 percent (6). Operating margin (EBIT margin) was 4 percent (5).

Consolidated profit before tax for the first quarter decreased by 24 percent to MSEK 8.8 (11.6).

Earnings were positively affected by an improved result in BTS North America. Earnings were negatively affected by a less favorable result in BTS Europe, BTS Other Markets and APG:

Market development

The market for BTS's services was stable during the period and unchanged compared with the previous year, with the exception of customers in the oil and gas sector where demand decreased significantly.

REVENUE BY QUARTER

PROFIT BEFORE TAX BY QUARTER

PROFIT BEFORE TAX AND OPERATING MARGIN (EBITA) BY QUARTER

NET SALES BY SOURCE OF REVENUE JANUARY 1–MARCH 31, 2016 (2015)

OPERATING UNITS

NET SALES PER OPERATING UNIT JANUARY 1–MARCH 31, 2016 (2015)

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

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

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

APG consists of operations in Advantage Performance Group.

NET SALES PER OPERATING UNIT

MSEK	Jan–March 2016	Jan–March 2015	April–March 2015/16	Jan–Dec 2015
BTS North America	119.2	106.1	541.7	528.6
BTS Europe	30.6	34.5	175.0	178.9
BTS Other Markets	45.4	43.9	224.2	222.7
APG	28.8	33.8	108.7	113.7
Total	224.1	218.3	1,049.7	1,043.9

OPERATING PROFIT BEFORE AMORTIZATION OF INTANGIBLE ASSETS (EBITA) PER OPERATING UNIT

MSEK	Jan–March 2016	Jan–March 2015	April–March 2015/16	Jan–Dec 2015
BTS North America	10.7	6.2	65.1	60.6
BTS Europe	–1.0	3.9	18.4	23.3
BTS Other Markets	1.0	1.7	26.4	27.3
APG	–0.5	0.8	1.5	2.6
Total	10.2	12.6	111.4	113.8

BTS North America

Net sales for BTS's operations in North America amounted to MSEK 119.2 (106.1) in the first quarter. Adjusted for changes in foreign exchange rates, revenue grew by 11 percent. Operating profit before amortization of intangible assets (EBITA) amounted to MSEK 10.7 (6.2) in the first quarter. Operating margin before amortization of intangible assets (EBITA margin) was 9 percent (6).

BTS North America gave a positive performance with growth of 11 percent and a significant increase in margins.

BTS Europe

Net sales for BTS Europe amounted to MSEK 30.6 (34.5) in the first quarter. Adjusted for changes in foreign exchange rates, revenue grew by 9 percent. Operating profit before amortization of intangible assets (EBITA) amounted to MSEK –1.0 (3.9) in the first quarter. Operating margin before amortization of intangible assets (EBITA margin) was –3 percent (11).

BTS Europe had a weak quarter with negative growth and minus earnings. BTS Europe has suffered cancellations from customers in the oil and gas sector and well as from some companies with major exposure to emerging markets.

BTS Other Markets

Net sales for BTS Other Markets amounted to MSEK 45.4 (43.9) in the first quarter. Adjusted for changes in foreign exchange rates, revenue grew by 13 percent. Operating profit before amortization of intangible assets (EBITA) amounted to MSEK 1.0 (1.7) in the first quarter. Operating margin before depreciation of intangible assets (EBITA margin) was 2 percent (4).

In BTS Other Markets we achieved solid growth but margins fell due to investments in new employees.

APG

Net sales amounted to MSEK 28.8 (33.8) in the first quarter. Adjusted for changes in foreign exchange rates, revenue decreased by 16 percent. Operating profit before amortization of intangible assets (EBITA) amounted to MSEK –0.5 (0.8) in the first quarter. Operating margin before amortization of intangible assets (EBITA margin) was –2 percent (2).

We continue with our strategy to restore a positive earnings development for APG – to launch new products and recruit additional partners.

Financial position

BTS's cash flow from operating activities for the first quarter amounted to MSEK -9.7 (-7.6). Available cash and cash equivalents amounted to MSEK 128.0 (113.0) at the end of the period. The company's interest-bearing loans amounted to MSEK 16.3 (0) at the end of the period. BTS's equity ratio was 68 percent (70) at the end of the period.

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

Employees

The number of employees within BTS at March 31 was 473 (442).

The average number of employees in the first quarter was 467 (426).

Parent Company

The Parent Company's net sales amounted to MSEK 0.8 (0.4) MSEK and profit after net financial items amounted to MSEK 0.1 (0.2). Cash and cash equivalents amounted to MSEK 0.6 (1.4).

Outlook for 2016

The result before taxes for 2016 is expected to be better than last year.

Risks and uncertainties

The Group's material risks and uncertainties include market and business risks, operational risks and financial risks. Business and market risks may relate to greater customer exposure for specific sectors and companies as well as sensitivity to market conditions. Operational risks include dependence on individuals, skills supply and intellectual property as well as BTS meeting the high quality demands of its clients. Financial risks mainly relate to foreign exchange and credit risks.

The management of risks and uncertainties is described in the 2015 Annual Report. BTS is considered to have a good spread of risks across companies and sectors and operational risks are handled in a structured manner through well-established processes. Day-to-day exposure to currency fluctuations is limited since revenues and costs are mainly in the same currency in each market, and credit risk is limited since BTS only accepts creditworthy counterparties. No new material risks or uncertainties are deemed to have arisen during 2016.

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, revenues 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 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 or financial position.

Financial calendar

Interim report April–June August 18, 2016 Interim report July–September November, 2016 Year-end report 2016 February 2017

Stockholm, May 10, 2016

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 SVP Investor and Tel: +46 8 587 070 02 Corporate Communications Mobile: +46 70 878 80 19

For further information, visit our website www.bts.com

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

Tel. +46 8 587 070 00 Fax. +46 8 587 070 01 Company registration number: 556566-7119

GROUP INCOME STATEMENT, SUMMARY

KSEK	Jan–March 2016	Jan–March 2015	April–March 2015/16	Jan–Dec 2015
Net sales	224,067	218,286	1,049,681	1,043,900
Operating expenses	–212,167	–203,991	–930,649	–922,473
Depreciation of property, plant, and equipment	–1,662	–1,673	–7,677	–7,688
Amortization of intangible assets	–1,094	–1,145	–4,235	–4,286
Operating profit	9,143	11,476	107,119	109,452
Net financial items	–305	171	–739	–263
Profit before tax	8,838	11,647	106,381	109,190
Taxes	–3,149	–3,798	–35,986	–36,635
Profit for the period	5,689	7,849	70,394	72,554
attributable to the shareholders
of the parent company	5,689	7,849	70,394	72,554
Earnings per share, before dilution
of shares, SEK	0.31	0.42	3.78	3.89
Number of shares at end of the period	18,646,370	18,646,370	18,646,370	18,646,370
Average number of shares before dilution	18,646,370	18,646,370	18,646,370	18,646,370
Earnings per share, after dilution of shares, SEK	0.31	0.42	3.78	3.89
Average number of shares after dilution	18,646,370	18,646,370	18,646,370	18,646,370
Dividend per share, SEK				2.35

GROUP STATEMENT OF COMPREHENSIVE INCOME

KSEK	Jan–March 2016	Jan–March 2015	April–March 2015/16	Jan–Dec 2015
Profit for the period	5,689	7,849	70,394	72,554
Items that will not be reclassified to profit or loss	–	–	–	–
	–	–	–	–
Items that may be reclassified to profit or loss
Translation differences in equity	–11,012	32,863	–35,893	7,982
Other comprehensive income for the period, net of tax	–11,012	32,863	–35,893	7,982
Total comprehensive income for the period	–5,324	40,712	34,501	80,536
attributable to the shareholders of the parent company	–5,324	40,712	34,501	80,536

GROUP BALANCE SHEET, SUMMARY

KSEK	31 March 2016	31 March 2015	31 Dec 2015
Assets
Goodwill	218,084	227,523	220,690
Other intangible assets	28,865	33,810	32,894
Tangible assets	13,819	14,447	15,232
Property, plant, and equipment	10,237	9,723	10,064
Trade receivables	192,112	200,695	276,812
Other current assets	110,825	78,647	115,737
Cash and cash equivalents	127,964	112,959	139,547
Total assets	701,905	677,805	810,976
Equity and liabilities
Equity	478,364	475,217	483,255
Interest bearing – non-current liabilities	16,294	–	16,705
Non-interest bearing – non-current liabilities	–	186	–
Non-interest bearing – current liabilities	207,247	202,403	311,016
Total equity and liabilities	701,905	677,805	810,976

GROUP CASH FLOW STATEMENT, SUMMARY

KSEK	Jan–March 2016	Jan–March 2015	Jan–Dec 2015
Cash flow from operating activities	–9,652	–7,586	57,864
Cash flow from investing activities	–409	–1,237	–19,020
Cash flow from financing activities	–	24	–16,293
Cash flow for the period	–10,061	–8,799	22,552
Cash and cash equivalents, opening balance	139,547	114,293	114,293
Translation differences in cash and cash equivalents	–1,522	7,465	2,702
Cash and cash equivalents, closing balance	127,964	112,959	139,547

GROUP CHANGES IN CONSOLIDATED EQUITY

KSEK	Total equity 31 March 2016	Total equity 31 March 2015	Total equity 31 Dec 2015
Opening balance	483,255	434,505	434,505
Dividend to shareholders	–	–	–32,631
New share issue	–	–	–
Other	432	–	845
Total comprehensive income for the period	–5,324	40,712	80,536
Closing balance	478,364	475,217	483,255

GROUP CONSOLIDATED KEY RATIOS

KSEK	Jan–March 2016	Jan–March 2015	April–March 2015/16	Jan–Dec 2015
Net sales, KSEK	224,067	218,286	1,049,681	1,043,900
EBITA (Profit before interest, tax and amortization), KSEK	10,238	12,622	111,354	113,739
EBIT (Operating profit), KSEK	9,143	11,476	107,119	109,452
EBITA margin (Profit before interest, tax and amortization margin), %	5	6	11	11
EBIT margin (Operating margin ), %	4	5	10	10
Profit margin, %	3	4	7	7
Operating capital, KSEK			366,695	360,413
Return on equity, %			15	16
Return on operating capital, %			29	32
Equity ratio, at end of the period, %	68	70	68	60
Cash flow, KSEK	–10,061	–8,799	21,290	22,552
Cash and cash equivalents, at end of the period, KSEK	127,964	112,959	127,964	139,547
Average number of employees	467	426	444	436
Number of employees at end of the period	473	442	473	463
Revenues for the year per employee, KSEK			2,365	2,394

PARENT COMPANY'S INCOME STATEMENT, SUMMARY

KSEK	Jan–March 2016	Jan–March 2015	April–March 2015/16	Jan–Dec 2015
Net sales	765	408	2,212	1,855
Operating expenses	–551	–252	–2,516	–2,217
Operating profit	214	156	–304	–362
Net financial items	–123	0	40,290	40,413
Profit before tax	91	156	39,986	40,051
Taxes	0	0	–746	–746
Profit for the period	91	156	39,240	39,305

PARENT COMPANY'S BALANCE SHEET, SUMMARY

KSEK	31 March 2016	31 March 2015	31 Dec 2015
Assets
Financial assets	101,976	101,976	101,976
Other current assets	26,830	1,362	26,258
Cash and cash equivalents	622	1,439	124
Total assets	129,427	104,777	128,359
Equity and liabilities
Equity	111,225	104,208	111,134
Liabilities	18,202	569	17,225
Total equity and liabilities	129,427	104,777	128,359

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 net sales.

EBIT margin (Operating 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 equity

Profit after tax as a percentage of average equity.

Return on operating capital

Operating profit as a percentage of average operating capital.

Equity ratio

Equity as a percentage of total balance sheet.

The global leader in turning strategy into action

BTS focuses 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 30 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.

Vision

The global leader in turning strategy into action.

Purpose

We inspire and equip people to do the best work of their lives, creating better businesses and a better planet.

Value proposition

We make strategy personal and drive great execution. Our unforgettable experiences create levels of alignment, mindset, and capability that deliver better results, faster.

Financial goals

BTS's financial goals shall over time be:

• Growth, adjusted for changes in exchange rates, of 20 percent, primarily organic.
• An EBITA margin of 15 percent.
• An equity ratio that does not fall below 50 percent over extended periods.

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

BTS HELSINKI Iso Roobertinkatu 4-6 00120 Helsinki Finland Tel. +358 9 4245 0330

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

BTS MUNICH

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

BTS PARIS

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

BTS STOCKHOLM Headoffice Grevgatan 34 114 53 Stockholm Sweden Tel. +46 8 58 70 70 00 Fax. +46 8 58 70 70 01

ADVANTAGE PERFORMANCE GROUP

100 Smith Ranch Road, Suite 306 San Rafael, CA 94903 USA Tel. +1 800 494 6646 Fax. +1 415 925 9512

BTS AUSTIN

Frost Bank Building 401 Congress Avenue Suite 2740 Austin, Texas 78701 USA Tel. +1 512 474 1416 Fax. +1 512 474 1433

BTS BROOKLYN 280 1st Street Brooklyn, NY 11215 USA Tel. +1 718 832 2118 Fax . +1 718 832 2899

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

BTS LOS ANGELES P.O. Box 10366 Marina del Rey, CA 90295 USA Tel. +1 424 202 6952

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 PHILADELPHIA

101 West Elm St Suite 310 Conshohocken, PA 19428 USA Tel. (toll free) +1 800 445 7089 Tel. +1 484 391 2900 Fax. +1 415 362 4270

BTS SAN FRANCISCO

222 Kearny Street, Ste 1000 San Francisco, CA 94108 USA Tel. +1 415 362 4200 Fax. +1 415 449 6119

BTS SCOTTSDALE

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

Fax. +1 480 948 2928 BTS STAMFORD

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

BTS BANGALORE

Vatika Business Center Divyashree Chambers, 2nd Floor, Wing A O'Shaugnessy Road, Langford Town Bangalore 560025 India Tel. +91 80 4291 1111 Ext 116 Fax. +91 40 4291 1222

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 27-1, Office No. 4 Bilbao 48013

Spain Tel. +34 94 423 5594 Fax. +34 94 423 689

BTS DUBAI 10th Floor, Swiss Tower Jumeirah Lakes Towers Dubai, United Arab Emirates Tel. +971 4 279 8341

BTS JOHANNESBURG

Fax. +971 4 279 8399

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

BTS MADRID

Calle José Abascal 55, piso 3ºDcha 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 MILAN

Via Giuseppe Revere 16 20123 Milan Italy Tel. +39 06 4227 2308

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 SAO PAULO

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

BTS SEOUL

7th Floor Hanvit Building 107 Sajik-ro Jongo-gu, Seoul South Korea 03041 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 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 102-0083, Japan Tel. +81 03 6272 9973 Fax. +81 03 6672 9974

We create powerful experiences that help leaders build the future of their business