BTS Group

Quarterly Report • Nov 11, 2020

BTS INTERIM REPORT JANUARY 1–SEPTEMBER 30, 2020

Third quarter clearly outperformed the second quarter

January 1 – September 30, 2020

• • Net sales amounted to MSEK 1,042 (1,313). Adjusted for changes in foreign exchange rates, sales decreased 20 percent.
• • Operating profit (EBITA) decreased 71 percent to MSEK 45 (156).
• • The operating margin (EBITA margin) was 4.3 (11.9) percent.
• • Profit after tax decreased 88 percent to MSEK 12 (96).
• • Earnings per share decreased 88 percent to SEK 0.60 (4.98).

Third quarter 2020

• • Net sales amounted to MSEK 347 (460). Adjusted for changes in foreign exchange rates, sales decreased 20 percent.
• • Operating profit (EBITA) decreased 62 percent to MSEK 21 (54).
• • The operating margin (EBITA margin) was 6.0 (11.8) percent.
• • Profit after tax decreased 76 percent to MSEK 8 (32).
• • Earnings per share decreased 76 percent to SEK 0.40 (1.67).
• • By comprehensively investing in virtual and digital solutions, BTS has managed to compensate for two thirds of the 70 percent of total revenue which were lost as a result of the cancellation of physical deliveries during the second and third quarters.
• • BTS has continued to invest in marketing and product development and has kept its personnel, with the aim of achieving growth and higher earnings moving forward. By making selective savings, total costs have been lowered by 22 percent in the second and third quarters compared to last year.
• • Revenue increased 8 percent in the third quarter compared with the second quarter (revenue has fallen by an average of 12 percent between the quarters during the past three years). EBITA increased 72 percent from the second to the third quarter (to be compared with an average decrease of 30 percent).
• • The Board proposes a dividend for the 2019 fiscal year of SEK 3.60 (3.60) per share, to be resolved at the Extraordinary General Meeting in December.

Q3

Third quarter – a step in the right direction and many opportunities on the horizon

Due to the global spread of COVID-19, all physical training deliveries during Q2 and Q3 were canceled or postponed.

With our rapid and total focus on virtual and digital solutions from February, we have managed to compensate for almost two thirds of the 70 percent lost revenue. Our total revenue decreased 32 percent during the second quarter and 20 percent during the third quarter compared to last year, but the revenue of equivalent competitors (for which official data is available) has decreased approximately 40 percent.

The third quarter was a step in the right direction, and has clearly outperformed the second quarter. Typically, it is the other way around.

We have also achieved an important lead. The changes in the market will be lasting; even when the COVID-19 crisis is behind us, a significant share of demand will center on virtual and digital solutions.

Many of our customers have indicated that demand for physical deliveries will return when travel restrictions and the limitations on meeting others are lifted, and that they will demand a combination of physical, virtual and digital solutions. Here, BTS has a great opportunity to grow rapidly and profitably moving forward.

Our focus in 2020 – with a challenging market and major changes – has been to implement the measures that make us stronger in the long term, allowing us to continue to increase revenue and earnings for the years ahead.

We have chosen to keep our personnel – we have a well-oiled and high-performing organization which has delivered growth and increases in earnings for many years. We have continued to invest in marketing and product development. The major transition to virtual and digital solutions has required extensive investment and a great deal of extra work during the year. We will be reusing the design, methodology and capacity that we have built up, as well as the many solutions that we have created, for many years to come.

For 18 years on the stock market until 2019, we have achieved a growth of an average of 14 percent per year, and an average EBITA improvement of 18 percent. Our goal for 2020 is not to maximize profit, but to create the prerequisites for continual long-term profit increases for many years to come.

In order to maintain revenue from existing customers and to increase the inflow of new customers, we have reallocated our sales resources to focus on the industries and areas in which companies continue to invest. From

March 1 until November 6, BTS has won deals corresponding to circa MUSD 100 in the form of new digital and virtual projects.

We have also implemented selective savings, that will not negatively impact our long-term ability to grow, and lowered expenses by a total of 22 percent during the second and third quarters. In total, and despite the very challenging market conditions, we have achieved a positive EBITA of MSEK 21 for the third quarter. I would like to take this opportunity to thank all our employees for their incredible commitment and hard work during this difficult period – you made this possible.

The market recovery that began in the third quarter continues during the fourth quarter up to the time of today. Physical deliveries are still not being carried out, but many customers who have previously been awaiting the development of the crisis are now undertaking virtual and digital projects, and our extensive and prompt investment allows us to offer attractive solutions. The number of confirmed COVID-19 cases has risen quickly in October and November, in the same way as in March and April, but in general customers are responding differently – they know how to tackle the situation and continue their operations and investments.

BTS's focus is to exit the 2020 pandemic and recession as a stronger company, and to achieve a level of profit higher than prior to the recession as well as sustainably growing. Our goal is to have a larger and more profitable operation than before the pandemic – based on an expanded customer base, deeper customer relations, a stronger organization and increased revenue from virtual and digital solutions combined with physical deliveries.

Stockholm, November 11, 2020

Henrik Ekelund

President and CEO of BTS Group AB (publ)

OPERATIONS

Sales

BTS's net sales for the nine-month period amounted to MSEK 1,042 (1,313). Adjusted for changes in foreign exchange rates, total sales decreased 20 percent.

Growth varied between the units: BTS Europe –13 percent, BTS North America –19 percent, APG –22 percent and BTS Other markets –25 percent (growth measured in local currency).

Earnings

Operating profit (EBITA) decreased 71 percent for the nine-month period to MSEK 45 (156). The operating margin (EBITA margin) was 4.3 (11.9) percent.

Operating profit (EBIT) decreased 81 percent for the nine-month period to MSEK 27 (142). The operating margin (EBIT margin) was 2.6 percent (10.8). Operating profit (EBIT) for the nine-month period was charged with MSEK 18.3 (14.3) for amortization of intangible assets attributable to acquisitions.

The Group's profit before tax decreased 88 percent to MSEK 17 (136).

The Group's profitability was negatively affected by a decrease in profit in all operating units.

Third quarter

BTS's third-quarter net sales amounted to MSEK 347 (460). Adjusted for changes in foreign exchange rates, sales decreased 20 percent.

Operating profit (EBITA) decreased 62 percent in the third quarter to MSEK 21 (54). The operating margin (EBITA margin) was 6.0 (11.8) percent.

Operating profit (EBIT) decreased 71 percent to MSEK 14 (49). The operating margin (EBIT margin) was 4.2 percent (10.7). Operating profit for the third quarter was charged with MSEK 6.3 (5.4) for amortization of intangible assets attributable to acquisitions.

Profit before tax for the third quarter decreased 76 percent to MSEK 11 (46).

The Group's profitability, except for in BTS Other markets, was negatively affected by a decrease in profit in all operating units.

NET SALES AND OPERATING PROFIT (EBITA) ROLLING 12 MONTHS

REVENUE BY QUARTER

OPERATING PROFIT (EBITA) BY QUARTER

PROFIT BEFORE TAX AND OPERATING MARGIN (EBITA) BY QUARTER

Lore m ipsu m

Market development

The market has changed dramatically during the year. As a result of the spread of COVID-19 and the subsequent social restrictions, demand for physical deliveries, which typically makes up approximately 70 percent of BTS's revenue, has been non-existent. The resulting recession, with cost saving measures implemented by many companies, has also had a negative impact on demand. In certain industries and companies there is still a strong demand for our services.

The market situation has improved since the beginning of the third quarter and this situation has remained in place thus far in the fourth quarter.

SEGMENT REPORTING

The effects of IFRS 16 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, 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 BY SOURCE OF REVENUE JANUARY 1–SEPTEMBER 30, 2020 (2019)

NET SALES PER OPERATING UNIT JANUARY 1–SEPTEMBER 30, 2020 (2019)

MSEK	Jul–Sep 2020	Jul–Sep 2019	Jan–Sep 2020	Jan–Sep 2019	Oct–Sep 2019/20	Jan–Dec 2019
BTS North America	156	224	514	633	758	877
BTS Europe	76	95	224	257	353	386
BTS Other markets	93	116	240	341	389	490
APG	22	24	64	82	94	112
Total	347	460	1,042	1,313	1,594	1,865

NET SALES PER OPERATING UNIT

OPERATING PROFIT (EBITA) PER OPERATING UNIT

MSEK	Jul–Sep 2020	Jul–Sep 2019	Jan–Sep 2020	Jan–Sep 2019	Oct–Sep 2019/20	Jan–Dec 2019
BTS North America	7.0	29.3	37.1	86.3	69.4	118.6
BTS Europe	3.0	14.2	10.7	33.4	40.5	63.3
BTS Other markets	9.8	9.8	–3.2	33.3	20.7	57.2
APG	–0.7	–0.3	–3.8	0.0	–2.3	1.5
Total	19.2	53.0	40.8	153.1	128.3	240.5

BTS North America

Net sales for BTS's operations in North America amounted to MSEK 514 (633) for the nine-month period. Adjusted for changes in foreign exchange rates, revenue decreased 19 percent. Operating profit (EBITA) for the nine-month period totaled MSEK 37.1 (86.3). The operating margin (EBITA margin) was 7.2 (13.6) percent.

Net sales for the third quarter amounted to MSEK 156 (224). Adjusted for changes in foreign exchange rates, revenue decreased 25 percent. Operating profit (EBITA) amounted to MSEK 7.0 (29.3) in the third quarter. The operating margin (EBITA margin) was 4.5 (13.1) percent.

BTS North America achieved revenue at the same level in the third quarter as in the second (after adjustments for changes in foreign exchange rates). Revenue is normally significantly lower in the third quarter compared with the second quarter. This is an effect of the improved market situation and more customers choosing virtual and digital solutions. EBITA decreased in the third quarter compared with the second quarter due to higher costs for subcontractors.

BTS Europe

Net sales for BTS Europe amounted to MSEK 224 (257) for the nine-month period. Adjusted for changes in foreign exchange rates, revenue decreased 13 percent. Operating profit (EBITA) for the nine-month period totaled MSEK 10.7 (33.4). The operating margin (EBITA margin) was 4.8 (13.0) percent.

Net sales for the third quarter amounted to MSEK 76 (95). Adjusted for changes in foreign exchange rates, revenue decreased 18 percent. Operating profit (EBITA) amounted to MSEK 3.0 (14.2) in the third quarter. The operating margin (EBITA margin) was 4.0 (14.9) percent.

BTS Europe achieved a clear improvement in the third quarter compared with the second quarter of the year – typically, it is the other way around. The market situation has improved and several customers have decided to make use of our virtual and digital solutions.

BTS Other markets

Net sales for BTS Other markets amounted to MSEK 240 (341) for the nine-month period. Adjusted for changes in foreign exchange rates, revenue decreased 25 percent. Operating profit (EBITA) for the nine-month period totaled MSEK –3.2 (33.3). The operating margin (EBITA margin) was –1.4 percent (9.8).

Net sales amounted to MSEK 93 (116) in the third quarter. Adjusted for changes in foreign exchange rates, revenue decreased 14 percent. Operating profit (EBITA) amounted to MSEK 9.8 (9.8) in the third quarter. The operating margin (EBITA margin) was 10.5 (8.4) percent.

BTS Other markets reported the largest decrease in revenue and EBITA in the second quarter but has turned this situation around and achieved the same EBITA in the third quarter as it did in 2019. The market situation has improved and several customers have decided to make use of our virtual and digital solutions. We also succeeded in managing our costs well.

APG

Net sales for APG amounted to MSEK 64 (82) in the ninemonth period. Adjusted for changes in foreign exchange rates, revenue decreased 22 percent. Operating profit (EBITA) for the nine-month period totaled MSEK –3.8 (0.0). The operating margin (EBITA margin) was –5.9 percent (0.0).

Net sales for the third quarter amounted to MSEK 22 (24). Adjusted for changes in foreign exchange rates, revenue decreased 1 percent. Operating profit (EBITA) amounted to MSEK –0.7 (–0.3) in the third quarter. The operating margin (EBITA margin) was –3.1 percent (–1.4).

APG succeeded much better in the third quarter than in the second quarter of the year. The market situation has improved and several customers are choosing our virtual and digital solutions.

BTS'S OFFICES AROUND THE WORLD

OTHER INFORMATION

Financial position

BTS's cash flow from operating activities amounted to MSEK 154 (89) in the nine-month period.

Available cash and cash equivalents amounted to MSEK 574 (271) at the end of the period. The company's interest-bearing loans amounted to MSEK 276 (93) at the end of the period.

BTS's equity ratio was 42 percent (47) at the end of the period.

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

Employees

On September 30, the number of employees at BTS was 842 (825).

The average number of employees for the nine-month period was 847 (765).

Parent Company

The Parent Company's net sales amounted to MSEK 2.5 (2.3) and profit before tax totaled MSEK 15.2 (26.5). Cash and cash equivalents amounted to MSEK 21.0 (0.0).

Impact of COVID-19

Operations

A summary of the impact of the pandemic on BTS in the nine-month period appears in the report above and the lower sales are deemed to be entirely attributable to the pandemic. As previously communicated and now updated, a number of strategic measures have been adopted to evolve operations to handle the effects of the pandemic on market development.

BTS is following the recommendations of the authorities. However, the health and well-being of our employees and customers has the highest priority for us, which is why in some cases we follow stricter rules than what the authorities recommend. The continued progression of the pandemic is difficult to predict, but the restrictions that have been implemented have a significant effect on BTS's operations and demand for some of the company's services.

Support measures

In the second and third quarters the Group has, to a limited extent, benefited from local support measures. These have reduced personnel costs by a total of MSEK 11.9. Included in this sum are different types of stimulus packages totaling MSEK 7.2 and short-time working support totaling MSEK 4.8. 49 individuals, equivalent to 29 full-time positions have been affected by short-time working measures in the second and third quarters. Swedish operations have only been affected by the overall reduction of social security contributions of MSEK 0.6.

Financial position and liquidity

BTS has taken measures to ensure financial preparedness in the current market situation. Available cash and cash equivalents amounted to MSEK 574 (271) at the end of the period. Calculations for the valuation of goodwill have been updated at the end of the third quarter and impairment

testing has been conducted. These show that there is no need for impairment.

Events after the end of the period BTS Group proposes dividend

On November 10, 2020, BTS Group announced that the company's Board of Directors had proposed a dividend of SEK 3.60 per share for the 2019 fiscal year, and that this dividend proposal would be resolved at an Extraordinary General Meeting to be held on December 11, 2020.

The Board withdrew its original dividend proposal in the spring in light of the ongoing uncertainty caused by the global spread of the coronavirus (COVID-19). There was reason to be particularly cautious in uncertain times, despite the fact that BTS Group had a strong financial position after its record-breaking year of 2019. The Annual General Meeting on May 14, 2020 resolved in accordance with the Board's proposal not to pay any dividends to the shareholders. The Board also announced its intention to convene an Extraordinary General Meeting in the autumn to resolve on a dividend for the 2019 fiscal year if the conditions allowed.

As of the third quarter, the market situation for BTS has improved, and this development continues to this day. BTS achieved a positive result during the difficult second quarter and earnings have increased from the second to the third quarter. The company continues to have a very good financial strength and liquidity. Following an overall assessment, the Board has decided to propose to the Annual General Meeting a dividend of SEK 3.60 per share for the 2019 fiscal year, i.e. unchanged compared with 2018. The company has not used the Swedish state redundancy support.

Given the prevailing circumstances, the Meeting will be held in the form of advance voting, following the temporary legislation decreed by the Swedish parliament whereby votes are sent to the company prior to the Meeting. The notice will be published separately.

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 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 2019 Annual Report.

The COVID-19 pandemic had a significant impact on the general market climate and global economy during the period. The pandemic negatively affected the Group's sales and earnings, an effect of severe restrictions regarding free movement in several countries where BTS has its operations. As a result, the demand for the company's services declined since many customers decided to postpone physical deliveries.

To minimize the risks of long-term negative consequences for BTS, Group Management and the Board are continuously analyzing and evaluating underlying trends and changes in the market. Action plans are drawn up based on these analyses with various measures to manage or mitigate risks.

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.

Nomination Committee

As previously announced, a Nomination Committee has been appointed. In consultation with Chairman of the Board Reinhold Geijer, BTS's three largest shareholders have appointed the following individuals to serve on the Nomination Committee:

• Anders Dahl, appointed by Henrik Ekelund
• Erik Durhan, appointed by Nordea Fonder
• Reinhold Geijer, Chairman of the Board of BTS Group AB
• Stefan af Petersens, own holding.

Anders Dahl has been appointed Chairman of the Nomination Committee.

The task of the Committee is to put forward proposals prior to the 2021 Annual General Meeting for chairman of the annual meeting, the Board, the Chairman of the Board, and auditors, proposals of fees for Board member and the auditors, and principles for the composition of the Nomination Committee.

Shareholders in BTS Group AB are welcome to submit proposals to the Chairman of the Nomination Committee at the following address: dalledulsing@me.com or by mail to: BTS Group AB, Nomination Committee, Grevgatan 34, SE-114 53 Stockholm, Sweden.

The proposed composition of the Board of the Directors will be announced in the notice convening the next Annual General Meeting.

Financial calendar

Year-end report 2020 February 24, 2021 Interim report Jan–Mar 2021 May 19, 2021 Interim report Jan–Jun 2021 August 18, 2021 Interim report Jan–Sep 2021 November 10, 2021

Stockholm, November 11, 2020

Reinhold Geijer	Mariana Burenstam Linder
Chairman	Board member
Stefan Gardefjord	Dag Sehlin
Board member	Board member
Anna Söderblom Board member	Henrik Ekelund CEO Board member

This report has not been reviewed by BTS's auditors.

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 our website 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

BTS is a global professional services firm headquartered in Stockholm, Sweden. BTS has approximately 850 professionals in 35 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 more than 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 client needs, including: Strategy execution, Leadership development programs, Assessment, Developing business acumen, Transforming sales organizations, Coaching, and Digital solutions, events and services.

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.

Group income statement, summary

	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Oct–Sep	Jan–Dec
KSEK	2020	2019	2020	2019	2019/20	2019
Net sales	347,004	459,739	1,041,524	1,312,994	1,594,029	1,865,499
Operating expenses	–310,542	–387,927	–947,729	–1,109,688 –1,392,355		–1,554,314
Depreciation of property, plant, and equipment	–15,699	–17,448	–48,878	–46,862	–67,871	–65,855
Amortization of intangible assets	–6,328	–5,380	–18,333	–14,254	–23,749	–19,670
Operating profit	14,436	48,984	26,585	142,191	110,054	225,660
Net financial items	–3,858	–2,686	–9,919	–6,691	–12,999	–9,771
Associated company, profit after tax	548	–37	94	708	–29	585
Profit before tax	11,126	46,261	16,760	136,208	97,026	216,475
Estimated tax	–3,410	–14,006	–5,080	–40,646	–30,160	–65,726
Profit for the period	7,716	32,255	11,680	95,562	66,866	150,748
Attributable to the shareholders
of the parent company	7,716	32,255	11,680	95,562	66,866	150,748
Earnings per share, before dilution
of shares, SEK	0.40	1.67	0.60	4.98	3.46	7.84
Number of shares at end of the period	19,318,292	19,318,292	19,318,292	19,318,292 19,318,292		19,318,292
Average number of shares before dilution	19,318,292	19,311,340	19,318,292	19,188,893 19,316,554		19,221,242
Earnings per share, after dilution of shares, SEK	0.40	1.67	0.60	4.98	3.46	7.84
Average number of shares after dilution	19,318,292	19,311,340	19,318,292	19,188,893 19,316,554		19,221,242
Dividend per share, SEK						0.00

Group statement of comprehensive income

KSEK	Jul–Sep 2020	Jul–Sep 2019	Jan–Sep 2020	Jan–Sep 2019	Oct–Sep 2019/20	Jan–Dec 2019
Profit for the period	7,716	32,255	11,680	95,562	66,866	150,748
Items that will not be reclassified to profit or loss	–	–	–	–	–	–
	–	–	–	–	–	–
Items that may be reclassified to profit or loss
Translation differences in equity	–25,224	32,224	–42,013	60,960	–76,862	26,111
Other comprehensive income for the period, net of tax	–25,224	32,224	–42,013	60,960	–76,862	26,111
Total comprehensive income for the period	–17,508	64,478	–30,333	156,522	–9,996	176,859
Attributable to the shareholders of the parent company	–17,508	64,478	–30,333	156,522	–9,996	176,859

Group balance sheet, summary

KSEK	Sep 30 2020	Sep 30 2019	Dec 31 2019
Assets
Goodwill	576,139	543,572	535,916
Other intangible assets	81,700	82,712	82,467
Tangible assets	202,681	220,843	219,778
Financial assets	14,327	13,736	13,147
Total non-current assets	874,847	860,863	851,308
Trade receivables	288,332	432,603	514,132
Other current assets	176,657	246,728	186,983
Cash and cash equivalents	573,523	270,541	316,388
Total current assets	1,038,512	949,872	1,017,503
TOTAL ASSETS	1,913,359	1,810,735	1,868,812
Equity and liabilities
Equity	808,890	854,204	839,678
Provisions	150,246	233,906	134,052
Non-current liabilities	321,417	228,422	230,245
Current liabilities	632,807	494,202	664,838
Total liabilities	1,104,469	956,530	1,029,134
TOTAL EQUITY AND LIABILITIES	1,913,359	1,810,735	1,868,812

Group cash flow statement, summary

KSEK	Jan–Sep 2020	Jan–Sep 2019	Jan–Dec 2019
Cash flow before changes in working capital	73,161	150,652	235,809
Cash flow from changes in working capital	80,908	–61,718	–18,096
Cash flow from operating activities	154,070	88,934	217,712
Acquisition related	–34,879	–11,618	–14,260
Other1	–16,569	–20,074	–23,405
Cash flow from investing activities	–51,449	–31,691	–37,665
Dividend	–	–34,458	–69,231
New issue	–	22,899	22,899
Other	167,612	–52,583	–85,743
Cash flow from financing activities	167,612	–64,142	–132,074
Cash flow for the period	270,233	–6,899	47,973
Cash and cash equivalents, opening balance	316,388	262,357	262,357
Translation differences in cash and cash equivalents	–13,099	15,082	6,058
Cash and cash equivalents, closing balance	573,523	270,541	316,388

1 Acquisition of assets.

Group changes in consolidated equity

KSEK	Sep 30 2020	Sep 30 2019	Dec 31 2019
Opening balance	839,678	704,203	704,203
Dividend to shareholders	–	–34,458	–69,231
New issue	–	26,657	26,657
Other	–455	1,281	1,190
Total comprehensive income for the period	–30,333	156,522	176,859
Closing balance	808,890	854,204	839,678

Parent Company's income statement, summary

KSEK	Jul–Sep 2020	Jul–Sep 2019	Jan–Sep 2020	Jan–Sep 2019	Oct–Sep 2019/20	Jan–Dec 2019
Net sales	655	545	2,475	2,315	3,090	2,930
Operating expenses	–476	561	–2,694	328	–4,168	–1,146
Operating profit	179	1,106	–219	2,643	–1,078	1,784
Net financial items	–1,736	2,279	15,454	23,886	31,645	40,077
Profit before tax	–1,558	3,385	15,235	26,529	30,567	41,861
Estimated tax	–	–	–	–	–878	–878
Profit for the period	–1,558	3,385	15,235	26,529	29,689	40,983

Parent Company's balance sheet, summary

KSEK	Sep 30 2020	Sep 30 2019	Dec 31 2019
Assets
Financial assets	302,568	302,981	302,332
Other current assets	160,795	53,430	21,905
Cash and cash equivalents	20,988	9	1,883
Total assets	484,351	356,420	326,120
Equity and liabilities
Equity	170,525	175,608	155,290
Non-current liabilities	136,128	147,802	40,000
Current liabilities	177,699	33,010	130,830
Total equity and liabilities	484,351	356,420	326,120

Group consolidated key ratios

KSEK	Jul–Sep 2020	Jul–Sep 2019	Jan–Sep 2020	Jan–Sep 2019	Oct–Sep 2019/20	Jan–Dec 2019
Net sales	347,004	459,739	1,041,524	1,312,994	1,594,029	1,865,499
Operating profit (EBITA)	20,764	54,364	44,918	156,445	133,803	245,330
Operating margin (EBITA margin), %	6.0	11.8	4.3	11.9	8.4	13.2
Operating profit (EBIT)	14,436	48,984	26,585	142,191	110,054	225,660
Operating margin (EBIT margin), %	4.2	10.7	2.6	10.8	6.9	12.1
Profit margin, %	2.2	7.0	1.1	7.3	4.2	8.1
Operating capital1					511,342	599,687
Return on operating capital, %					20	39
Return on equity, %					8	20
Equity ratio, at end of the period, %	42	47	42	47	42	45
Cash flow	173,867	60,462	270,233	–6,899	325,105	47,973
Cash and cash equivalents, at end of the period	573,523	270,541	573,523	270,541	573,523	316,388
Average number of employees	847	809	847	765	842	779
Number of employees at end of the period	842	825	842	825	842	832
Revenues for the year per employee					1,894	2,393

1 The calculation included the item of non-interest-bearing liabilities amounting to 879,528 (727,773) KSEK.

Net sales according to business model

MSEK			Jan–Sep 2020					Jan–Sep 2019
	BTS North America	BTS Europe	BTS Other markets	APG	Total	BTS North America	BTS Europe	BTS Other markets	APG	Total
Programs	188	107	153	58	505	344	149	255	68	816
Development	218	91	66	0	375	196	78	59	0	333
Licenses	100	21	16	6	142	51	14	13	14	91
Other revenue	9	5	5	0	19	42	17	14	0	72
TOTAL	514	224	240	64	1,042	633	257	341	82	1,313

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 total balance sheet.

Sweden

Head Office Grevgatan 34 114 53 Stockholm SWEDEN Tel: 08 58 70 70 00

Argentina

Reconquista 657 PB 3 CP1003 CABA. Buenos Aires Tel: +54 1157955721

Australia

198 Harbour Esplanade, Suite 404 Docklands VIC 3008 Tel: +61 3 9670 9850

Level 6 10 Barrack St 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 West 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

Costa Rica

Office 203 Prisma Business Center San José Tel: +506 22 88 48 19

France

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

Germany

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

India

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

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

Italy

Viale Fulvio Testi 223 20162 Milan Tel: +39 02 6611 6364

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

Japan

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

Mexico

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

The Netherlands

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

Singapore

1 Finlayson Green Suite 16-01 Singapore 049246 Tel: +65 6304 3032

Spain

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

Calle José Abascal 55, piso 3ºDcha 28003 Madrid Tel: +34 91 417 5327

South Africa

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

South Korea

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

Switzerland

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

Taiwan

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

Thailand

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

UK

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

Holbrook Court, Cumberland Business Centre, Hampshire, PO5 1DS Portsmouth Tel: +44 2393 162686

United Arab Emirates

10th Floor, Swiss Tower Jumeirah Lakes Towers Dubai Tel: +971 4 279 8341

USA

Frost Bank Building 401 Congress Avenue Suite 2740 Austin, Texas 78701 Tel: +1 512 474 1416

200 South Wacker Drive Suite 925 Chicago, IL 60606 Tel: +1 312 509 4750

101 West Elm Street Suite 310 Conshohocken, PA 19428 Tel. (toll free) +1 800 445 7089 Tel: +1 484 391 2900

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

4742 North 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

Advantage Performance Group

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

Strategy made personal

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