Formpipe Software

Quarterly Report • Apr 24, 2018

Interim report January – March 2018

PERIOD JANUARY 1 – MARCH 31, 2018

• Net sales increased by 7 % to SEK 101.2 m (SEK 94.7 m)
• Software revenues increased by 9 % to SEK 66.2 m (SEK 61.0 m)
• Recurring revenue amounted to SEK 52.2 m (SEK 47.1 m) which corresponds to 52 % (50 %) of net sales.
• EBITDA SEK 25.3 m; 25.0 % (SEK 18.8 m; 19.8 %)
• EBITDA-adj. SEK 17.2 m; 17.0 % (SEK 9.1 m; 9.6 %)
• EBIT SEK 13.6 m; 13.4 % (SEK 4.4 m; 4.7 %)
• Net profit SEK 9.9 m; 9.8 % (SEK 2.8 m; 3.0 %)
• EPS before dilution SEK 0.19 (SEK 0.05)
• Cash flow from operating activities SEK 20.0 m (SEK 13.8 m)

INCOME STATEMENT - SUMMARY

Jan-Mar	Jan-Mar		Rolling 12	Full year
(SEK Million) 2018 2017	2018	2017	months	2017
Net sales 101,2 94,7	101,2	94,7	396,7	390,2
whereof recurring revenue 52,2 47,1	52,2	47,1	199,9	194,8
EBITDA 25,3 18,8	25,3	18,8	92,3	85,8
EBITDA-adj 17,2 9,1	17,2	9,1	57,0	48,9
EBIT 13,6 4,4	13,6	4,4	46,8	37,7

Comments from the Groups CEO

The year started off with a good first quarter. All performance indicators show a sharp improvement compared to the same period last year. The, for us, important key performance measure EBITDA-Adj increased with 89 % and amounted to SEK 17 million and we more than tripled the net profit for the period. Earnings per share is almost quadrupled and the group's cash flow is strong for the quarter.

The performance trend is satisfying and a proof that our efforts with cost adjustments in areas where we previously have had challenges is giving the desired effect at the same time as we have a good drive in our growth areas.

To a certain extent, the result is affected by the fact that a larger share of won contracts has been as traditional license deals and not as SaaS. However, we see this as temporary and we estimate that the trend of increasing share of SaaS contracts will continue in the future. But for this quarter, the accounted revenues will be somewhat higher than normal and will have a positive impact on the profit for the period.

As a summary, it is satisfying to be able to deliver such a strong quarter. That we now have recurring revenues covering 71 % of our operating costs is obviously a strong platform for positive earnings development in the future.

Market

Enterprise content management (ECM) is used to create, store, distribute, discover, archive and manage digital content (such as scanned documents, email, reports, medical images and office documents), and ultimately analyze usage to enable organizations to deliver relevant content to users where and when they need it. It is in the ECM market that Formpipe has emerged as the market leader in the public sector, as a challenger in e.g. life sciences and legal as well as cross-industry for parts of the product range.

Growth in the ECM market is fueled in large part by the organizational and corporate wide need to streamline operations and meet legal requirements and regulations.

Making business value from the information requires applications and services to search, analyze, process and distribute data and content. Growth drivers continually gain strength as the sheer amount of data and information increases and ECM remains a highly prioritized investment area. Gartner's forecast on ECM software revenue is a Compound Annual Growth Rate of 8.3 %, 2018-2021. The ECM market is large and fragmented, with a total addressable market (systems revenue) of 8.0 billion dollars in 2018 (Source: Gartner, Enterprise Software Markets, Worldwide, 2013-2020, 4Q16 update).

A CHANGING MARKET

The ECM market is changing from the centralized, backend, command and control of unstructured content to integrated, purpose-built, cloud based solutions that prioritizes content usability, processing and analyzing content from one or several sources, to get business insights and business value. Control, file synchronization and sharing will be a standard capability of ECM offerings.

This change is well in line with the Formpipe's strategy, as more and more of the company's customers choose to switch to cloud solutions for the standard products, as well as with the company development of applications and modules with the ability to process information from both Formpipe's existing systems or from other systems.

The development for ECM software is towards cloud based solutions and Gartner predicts that at least 50% of the leading ECM software providers will have rearchitected their offerings to cloud based platform by the end of 2018. But even if the trend is towards the cloud, the license revenues from on-premise will play an important role for years to come.

FORMPIPES OFFERINGS IN ECM:

CA S E A N D DO C U M E N T MA N A G E M E N T

Case and Document Management is about managing documents and information in cooperation, over functional boundaries, with version management, management of rights, traceability and automation of the work flows. This provides lower costs, minimized risk exposure and structured information. In the area of Case and Document Management, Formpipe addresses the public sector in Sweden and Denmark, as well as the industries of Life Science and Legal.

GR A N T S MA N A G E M E N T

Grants Management automates the whole life cycle for applications and grants for both grant funding bodies and recipients, from requests for proposals by the program to measurement and reporting of the outcome of the effort. Formpipes Grants Management products are currently sold to the public sector and it is the leading system with national authorities.

C U S T O M E R C O M M U N I C A T I O N S MA N A G E M E N T

With CCM products, content is produced, individualized, formatted and distributed from different systems and data sources to the format that best suits the company in its communication with customers or other business partners. Formpipe's CCM product Lasernet is mainly tied to sales of ERP systems

ST R U C T U R E D DA T A AR C H I V I N G

Structured data archiving is the ability to index and move important operating data from active business systems, or systems being discontinued. It provides control and makes the data available in its context, reduces storage costs and the amount of data in the daily production environment. Formpipe's product Long-Term Archive is currently sold to the public sector in Sweden where there is a high level of activity.

The Future

Formpipe is well-positioned to be able to develop and strengthen its leading position as ECM provider while retaining good profitability levels. The company sees good opportunities to continue to utilize its experience from its successes in order to target new markets and customer segments. A solid product development and product strategy creates good conditions to be able to efficiently develop market-leading offerings and meet up with sector-specific requirements also in the future.

The board believes that Formpipe, which is one of the largest European-based ECM suppliers, is wellpositioned with a stabile customer base, a high share of recurring revenue and a focus on customer segments with a high need for ECM solutions.

¹ Source: Gartner, Enterprise Software Markets, Worldwide, 2014-2021, 4Q17 Update

Financial Information

REVENUE

January – March 2018

Net sales for the period totalled to SEK 101.2 million (94.7 million), which corresponds to an increase of 7 %. Software revenue increased by 9 % from the previous year and totalled to SEK 66.2 million (61.0 million). Total recurring revenue for the period increased by 11 % from the previous year and totalled to SEK 52.2 million (47.1 million), which is equivalent to 51.6 % of net sales (49.8 %). Exchange rate effects have affected net sales positively by SEK 2.4 million in comparison with the previous year.

Breakdown of sales revenue, Jan–Mar 2018

Recurring revenue rolling 12 months, MSEK

SaaS Annual Recurring Revenue (ARR), MSEK

COSTS

January - March 2018

The operating costs for the period decreased by 3 % and totalled to SEK 87.6 million (90.3 million). Personnel costs was unchanged and totalled to SEK 54.4 million (54.5 million). Selling expenses totalled to SEK 10.6 million (13.6 million). Other costs totalled to SEK 19.0 million (17.5 million).

Recurring revenues in relation to fixed operating costs rolling 12 months, MSEK

EARNINGS

January - March 2018

Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 25.3 million (18.8 million) with an EBITDA margin of 25.0 % (19.8 %). Operating profit (EBIT) totalled to SEK 13.6 million (4.4 million) with an operating margin of 13.4 % (4.7 %). Net profit totalled to SEK 9.9 million (2.8 million). Exchange rate effects have affected EBITDA positively by SEK 0.5 million in comparison with the previous year.

FINANCIAL POSITION AND LIQUIDITY

Cash equivalents

Cash and cash equivalents at the end of the period amounted to SEK 90.0 million (60.4 million). The company had interest-bearing debt at the end of the period totalling to SEK 90.5 million (102.4 million). The company's net interest-bearing debt thereby totalled to SEK 0.5 million (42.0 million).

The company has bank overdraft facilities for a total of SEK 10.0 million and for DKK 17.0 million, which were not utilized at the end of the period (- million).

Deferred tax asset

By the end of the period the company's deferred tax assets attributable to accumulated losses amounted to SEK 14.9 million (SEK 17.0 million).

Equity

Equity at the end of the period amounted to SEK 384.7 million (347.9 million), which was equivalent to SEK 7.42 (6.79) per outstanding share at the end of the period. The weakening of the Swedish krona has increased the value of the group's net assets in foreign currencies by SEK 11.7 million (-1.0 million) from the end of the year.

Equity ratio

The equity ratio at the end of the period was 57 % (55 %).

CASH FLOW

Cash flow from operating activities

Cash flow from operating activities for the period January - March totalled to SEK 20.0 million (13.7 million).

Investments and acquisitions

Total investments for the period January - March amounted to SEK 8.8 million (9.9 million.

Investments in intangible assets totalled to SEK 8.6 million (9.6 million) and refer to capitalized product development costs.

Investments in tangible and financial assets totalled to SEK 0.3 million (0.2 million).

Financing

During the period January – March the company has amortized SEK 4.4 million (4.2 million) and the interestbearing debt amounted to SEK 90.5 million (102.4 million) at the end of the period.

Significant events during the period January – March 2018

JANUARY-MARCH

Agreement with three municipalities regarding Long-Term Archive

Formpipe has entered into an agreement to acquire the remaining 35.1 percent of the shares in the subsidiary Formpipe Intelligo AB through a non-cash rights issue. The acquisition is conditional upon the Annual General Meeting, which is scheduled to be held on April 25, 2018, to decide on the non-cash rights issue.

The minority owner is employed by the Group, why the acquisition is considered to be a transaction with related parties, and thereby needing a 90% majority at the meeting.

Significant events after the periods end

No significant events have occurred after the periods end.

Other

EMPLOYEES

The number of employees at the end of the reporting period totalled to 225 persons (241 persons).

RISKS AND UNCERTAINTY FACTORS

The significant risk and uncertainty factors for the group and the parent company, which include business and financial risks, are described in the annual report for the last financial year. During the period there have been no changes in the risk and uncertainty factors for the group and the parent company.

TRANSACTIONS WITH RELATED PARTIES

In addition to the agreed agreement to acquire the minority item in Formpipe Intelligo AB, no related party transactions have occurred during the period.

ACCOUNTING POLICIES

The group's financial reports are prepared in accordance with International Financial Reporting Standards (IFRS) in the way in which they have been adopted by the European Union, the Swedish Annual Accounts Act, RFR 1 Additional Accounting Regulations for Groups issued by the Swedish Financial Reporting Board and in accordance with the regulations that the Stockholm Stock Exchange stipulates for companies listed on Nasdaq Stockholm. Preparing financial reports in accordance with IFRS requires that the company management makes accounting evaluations and estimates and makes assumptions that affect the application of the accounting policies and the reported values of assets, liabilities, income and costs. The actual result can differ from these estimates and evaluations. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The interim report covers pages 1-14 and the interim report on pages 1-6 is thus an integral part of this financial report. The most important accounting policies according to IFRS, which constitute the accounting standard for the preparation of this interim report, are stated in the company's most recently published annual report

The financial reports of the parent company have been pre-pared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities issued by the Swedish Financial Reporting Board. The same accounting policies and methods of calculation have been applied in the interim report and in the most recent annual report.

ABOUT FORMPIPE

Formpipe Software AB (publ) is a software company in the field of ECM (Enterprise Content Management). We develop and deliver ECM products for structuring information in larger companies, the public sector and organizations. Our software helps organizations to capture and place information in context. Reduced costs, minimized risk exposure and structured information are the benefits from using our ECM products.

Formpipe was founded in 2004 and has offices in Sweden, Denmark, United Kingdom, the Netherlands, Germany and USA. The Formpipe share is listed on Nasdaq Stockholm.

CALENDAR FOR FINANCIAL INFORMATION

April 25, 2018	Annual general meeting
July 13, 2018	Interim report Jan-Jun
October 23, 2018	Interim report Jan-Sep

This interim report has not been subject to review by the company's auditors.

FINANCIAL INFORMATION

Can be ordered from the below contact details. All financial information is published on www.formpipe.com immediately after being made public.

CONTACT INFORMATION

Christian Sundin, Managing Director Telephone: +46 70 567 73 85, +46 8 555 290 84 E-mail: christian.sundin@formpipe.com

Stockholm February 14, 2018 Formpipe Software AB The Board of Directors and the Managing Director

Formpipe Software AB (publ) Swedish company reg. no.: 556668-6605

Sveavägen 168 | Box 231 31 | 104 35 Stockholm T: +46 8 555 290 60 | F: +46 8 555 290 99 info.se@formpipe.com | www.formpipe.se

CONSOLIDATED INCOME STATEMENT SUMMARY

	Jan-Mar
(SEK 000)	2018	2017
Net Sales	101 209	94 722
Sales expenses	-10 645	-13 625
Other costs	-18 965	-17 502
Personnel costs	-54 358	-54 465
Capitalized work for own account	8 055	9 632
Operating profit/loss before depreciation/amortization	25 296	18 763
and non-comparative items (EBITDA)
Items affecting comparability	-	0
Depreciation/amortization	-11 721	-14 356
Operating profit/loss (EBIT)	13 575	4 406
Financial income and expenses	-780	-1 082
Exchange rate differences	-138	-164
Tax	-2 708	-351
Net profit for the period	9 949	2 809
Of which the following relates to:
Parent company shareholders	9 940	2 691
Shareholding with no controlling influence	9	118
Other comprehensive income
Translation differences	11 683	-1 041
Other comprehensive income for the period, net after tax	11 683	-1 041
Total comprehensive income for the period	21 632	1 768
Of which the following relates to:
Parent company shareholders	21 623	1 650
Shareholding with no controlling influence	9	118
EBITDA margin, %	25,0%	19,8%
EBIT margin, %	13,4%	4,7%
Profit margin, %	9,8%	3,0%
Earnings per share attributable to the parent company's shareholders during the period (SEK per share)
- before dilution	0,19	0,05
- after dilution	0,19	0,05
Average no. of shares before dilution, in 000	51 873	51 274
Average no. of shares after dilution, in 000	52 117	51 906

CONSOLIDATED BALANCE SHEET SUMMARY

	Dec 31		Dec 31
(SEK 000)	2018	2017	2017
Intangible assets	476 127	465 347	465 071
Tangible assets	4 556	3 742	4 596
Financial assets	1 228	1 727	2 964
Deferred tax asset	14 967	16 971	14 937
Current assets (excl. cash equivalents)	85 948	78 816	106 052
Cash equivalents	90 023	60 438	82 663
TOTAL ASSETS	672 848	627 041	676 281
Equity	384 675	347 899	363 051
Shareholding with no controlling influence	2 087	2 823	2 079
Long-term liabilities	96 699	112 448	97 137
Current liabilities	189 388	163 871	214 014
TOTAL EQUITY AND LIABILITIES	672 848	627 041	676 281
Net interest-bearing debt (-) / cash (+)	-436	-41 956	-9 409

CHANGES IN CONSOLIDATED EQUITY

	Equity attributable to the parent company's shareholders					Share
		Other		Profit/loss		holdings with
	Share	contributed	Translation	brought		no controlling
(SEK 000)	capital	capital	reserves	forward	Total	influence	Total
Balance at January 1, 2017	5 127	193 829	11 499	135 793	346 249	2 705	348 954
Comprehensive income
Net profit for the period	-	-	-	2 691	2 691	118	2 809
Other comprehensive income items	-	-	-1 041	-	-1 041	-	-1 041
Total comprehensive income	-	-	-1 041	2 691	1 650	118	1 768
Total transaction with owners	-	-	-	-	-	-	-
Balance at Mar 31, 2017	5 127	193 829	10 459	138 484	347 899	2 823	350 722
Balance at January 1, 2018	5 187	194 729	17 892	145 243	363 051	2 079	365 130
Comprehensive income
Net profit for the period	-	-	-	9 940	9 940	8	9 948
Other comprehensive income items	-	-	11 683	-	11 683	-	11 683
Total comprehensive income	-	-	11 683	9 940	21 623	8	21 631
Total transaction with owners	-	-	-	-	-	-	-
Balance at Mar 31, 2018	5 187	194 729	29 575	155 183	384 675	2 087	386 762

CASH FLOW STATEMENT SUMMARY

	Jan-Mar
(SEK 000)	2018	2017
Cash flow from operating activities
before working capital changes	18 881	16 812
Cash flow from working capital changes	1 155	-3 076
Cash flow from operating activities	20 036	13 736
Cash flow from investing activities	-8 825	-9 919
Cash flow from financing activities	-4 443	-4 243
Cash flow for the period	6 768	-426
Change in cash and cash equivalent
Cash and cash equivalent at the beginning of the period	82 663	60 890
Translation differences	592	-25
Cash flow for the period	6 768	-426
Cash and cash equivalent at the end of the period	90 023	60 438

8 QUARTERS IN SUMMARY

(SEK 000)	2016 Q2	2016 Q3	2016 Q4	2017 Q1	2017 Q2	2017 Q3	2017 Q4	2018 Q1
License	17 766	10 870	27 658	13 829	15 733	6 792	16 698	14 024
SaaS	2 304	2 559	2 662	3 491	3 866	5 341	6 147	6 535
Support and maintenance	41 010	41 354	42 619	43 638	42 685	44 536	45 130	45 678
Software revenues	61 079	54 784	72 939	60 958	62 285	56 670	67 975	66 237
whereof recurring revenue	43 314	43 914	45 282	47 129	46 552	49 877	51 277	52 214
				0
Deliveries	40 452	28 438	33 757	33 765	34 774	31 332	42 482	34 972
Net sales	101 531	83 221	106 696	94 722	97 059	88 002	110 457	101 209
Sales expenses	-13 939	-11 327	-14 287	-13 625	-15 107	-12 772	-19 532	-10 645
Other costs	-18 724	-16 844	-18 621	-17 502	-18 700	-15 530	-19 978	-18 965
Personnel costs	-56 277	-44 260	-52 220	-54 465	-54 130	-46 428	-53 580	-54 358
Capitalized development costs	8 887	9 074	8 718	9 632	9 892	8 849	8 496	8 055
Total operating expenses	-80 053	-63 356	-76 410	-75 960	-78 046	-65 881	-84 595	-75 913
EBITDA	21 478	19 866	30 286	18 763	19 013	22 121	25 862	25 296
%	21,2%	23,9%	28,4%	19,8%	19,6%	25,1%	23,4%	25,0%
Items affecting comparability	-3 118	-	-	-	1 260	-	-863	-
Depreciation/amortization	-13 559	-13 658	-14 460	-14 356	-12 820	-10 976	-10 330	-11 721
EBIT	4 801	6 207	15 827	4 406	7 453	11 145	14 669	13 575
%	4,7%	7,5%	14,8%	4,7%	7,7%	12,7%	13,3%	13,4%

* In the connection of the Group's review of effects from the transition to IFRS 15 standard, the Groups's contracts has been reviewed and analyzed. The Group has not noted any effects from the transition that affects the income statement or balance sheet historically. During this work, a few contracts were noted where adjustments of the revenue type where neded between SaaS and support and maintenance. Therefore, reclassifications have been made in the above table between the revenue types SaaS and support and maintenance. At the same time the revenue type SaaS has been broken out of license and is now reported seperatly.

SEGMENT SUMMARY

The Group's segments are divided according to which country they have their headquarters in and for which products that is accounted for. The segments are divided into Sweden, Denmark and Life Science. Segment Sweden comprises the Swedish companies and their products, segment Denmark consists of the Danish companies and their subsidiaries that accounts for products belonging to the Danish entities. Segment Life Science consists of the Group's total records related to life sciences customers for its products specifically designed for life science companies. Items related to life sciences are thus reported separately under its own segment and are not included in the other segments' reported amounts.

	Jan-Mar 2018
			Life
(SEK 000)	Sweden	Denmark	Science	Eliminations	Group
Sales, external	44 660	53 423	3 126	-	101 209
Sales, internal	1 186	83	199	-1 468	-
Total sales	45 847	53 506	3 325	-1 468	101 209
Costs, external	-29 874	-43 400	-2 638	-	-75 913
Costs, internal	-675	-590	-203	1 468	-
EBITDA	15 298	9 515	483	-	25 296
%	33,4%	17,8%	14,5%		25,0%

	Jan-Mar 2017
			Life
(SEK 000)	Sweden	Denmark	Science	Eliminations	Group
Sales, external	39 156	52 815	2 751	-	94 722
Sales, internal	1 291	60	350	-1 701	-
Total sales	40 448	52 874	3 101	-1 701	94 722
Costs, external	-28 627	-44 072	-3 261	-	-75 960
Costs, internal	-1 134	-216	-352	1 701	-
EBITDA	10 687	8 587	-511	0	18 763
%	26,4%	16,2%	-16,5%		19,8%

GROUP-WIDE INFORMATION

Revenues from all products and services are identified as follows:

			Life
2018	Sweden	Denmark	Science	Group
License	8 477	5 148	398	14 024
SaaS	3 497	2 546	492	6 535
Support & Maintenance	23 696	21 268	714	45 678
Delivery	8 990	24 460	1 522	34 972
Net sales	44 660	53 423	3 126	101 209

			Life
2017	Sweden	Denmark	Science	Group
License	6 113	7 249	466	13 829
SaaS	2 732	401	358	3 491
Support & Maintenance	23 189	19 718	731	43 638
Delivery	7 122	25 446	1 196	33 764
Net sales	39 156	52 815	2 751	94 722

SALES ANALYSIS BY QUARTER

NUMBER OF SHARES

	2014-01-01	2015-01-01	2016-01-01	2017-01-01	2018-01-01
	2014-12-31	2015-12-31	2016-12-31	2017-12-31	2018-03-31
Number of outstanding shares at the beginning of the period	48 934 588	50 143 402	50 143 402	51 273 608	51 873 025
Share issue from warrant programme	-	-	1 130 206	599 417	-
Non-cash issue	1 208 814	-	-	-	-
Number of outstanding shares at the end of the period	50 143 402	50 143 402	51 273 608	51 873 025	51 873 025

KEY RATIOS FOR THE GROUP

	Jan-Mar
	2018	2017
Net sales, SEK 000	101 209	94 722
EBITDA, SEK 000	25 296	18 763
EBITDA-adj., SEK 000	17 241	9 130
EBIT, SEK 000	13 575	4 406
Net profit for the period, SEK 000	9 949	4 406
EBITDA margin, %	25,0%	19,8%
EBITDA-adj. margin, %	17,0%	9,6%
EBIT margin, %	13,4%	4,7%
Profit margin, %	9,8%	3,0%
Return on equity, %*	6,6%	6,8%
Return on working capital, %*	12,3%	7,9%
Equity ratio, %	57%	55%
Equity per outstanding share at the end of the period, SEK	7,42	6,79
Earnings per share - before dilution, SEK	0,19	0,05
Earnings per share - after dilution, SEK	0,19	0,05
Share price at the end of the period, SEK	13,45	12,95

* Ratios including P&L measures are based on the most recent 12-month period

This is a translation of the original Swedish version. In the event of any discrepancies between the two versions, the original Swedish version shall take precedence.

PARENT COMPANY INCOME STATEMENT SUMMARY*

		Jan-Mar
(SEK 000)	2018	2017
Net sales	35 135	34 521
Operating expenses
Sales expenses	-1 376	-4 701
Other costs	-8 154	-6 779
Personnel costs	-17 090	-16 637
Depreciation/amortization	-1 521	-1 560
Total operating expenses	-28 141	-29 677
Operating profit/loss	6 994	4 844
Other financial items	-539	318
Net profit for the period	6 455	5 162

PARENT COMPANY BALANCE SHEET SUMMARY

	Mar 31		Dec 31
(SEK 000)	2018	2017	2017
Intangible assets	13 970	18 456	14 852
Tangible assets	946	1 164	967
Financial assets	322 862	338 627	324 304
Deferred tax asset	-	-	-
Current assets (excl. cash equivalents)	62 628	68 044	79 439
Cash and bank balances	68 836	43 001	65 908
TOTAL ASSETS	469 242	469 292	485 470
Restricted equity	22 878	22 818	22 878
Non-restricted equity	218 083	215 226	211 628
Total equity	240 961	238 044	234 506
Long-term liabilities	79 404	110 857	81 429
Current liabilities	148 877	120 390	169 535
TOTAL EQUITY AND LIABILITIES	469 242	469 292	485 470

* A reclassification has been made between financial assets and current assets for the year 2017 related to the

short-term part of interest bearing receivables on group companies. The reclassification amounts to 11 159 Tkr.

PLEDGED ASSETS AND CONTINGENT LIABILITIES

Pledged assets refers to shares in subsidiaries as security for loans. The pledged assets in the Group is the same as disclosed for the Parent Company.

	Mar 31		Dec 31
(SEK 000)	2017	2016	2016
Pledged assets	320 755	305 442	310 329
Contingent liabilities	-	-	-

DEFINITIONS

Formpipe uses alternative key figures, also called APM (Alternative Performance Measures). From July 3rd 2016 new guidelines were implemented by the European Union regarding alternative APM's, which Formpipe uses in published reports. Formpipe's APM's is calculated from the financial reports, which are prepared in accordance with applicable rules for financial reporting, where prepared figures is altered by adding or subtracting amounts from the presented numbers. Below the alternative performance measures, that Formpipe uses in published reports, are defined and described

Software revenue

The total of license revenue and revenue from support and maintenance contracts.

Recurring revenue

Revenue of an annually recurring nature such as support and maintenance revenue and revenue from SAAS services regarding license agreements.

Annual recurring revenue (ARR)

Recurring revenue for the period's last month multiplied by 12, to obtain the recurring revenue for the coming 12 months from contracts with recognized revenue.

ARR IN

Initial value for the period's Annual recurring revenue.

ACV

Annual recurring revenue of the period's won and lost contracts (net).

ARR OUT

Closing value of the period's Annual recurring revenue, provided that all new/lost contracts (ACV) of the period have begun/ceased to be recognized.

Fixed operating expenses

Other costs and personnel costs

Operating expenses

Sales costs, other costs, personnel costs, capitalized development and depreciation.

EBITDA

Earnings before depreciation, amortization, acquisitionrelated costs and other items affecting comparability.

EBITDA-adj.

EBITDA exclusive capitalized work for own account

Items affecting comparability

The item must be of a material nature to be reported separately and considered undesirable from the regular core operations and complicate the comparison. For example, acquisition-related items, restructuring-related items and write-downs

EBIT

Operating profit/loss

Operating margin before depreciation and amortization (EBITDA margin)

Earnings before depreciation, amortization, acquisitionrelated costs and other items affecting comparability as a percentage of net sales.

Operating margin before depreciation and amortization (EBITDA-adj margin)

Earnings before capitalized work for own account, depreciation, amortization, acquisition-related costs and other items affecting comparability as a percentage of net sales.

Operating margin (EBIT margin)

Operating profit/loss as a percentage of net sales.

Profit margin

Net profit/loss after tax as a percentage of sales at the end of the period.

Earnings per share - before dilution

Net profit/loss after tax divided by the average number of shares during the period.

Earnings per share - after dilution

Net proft/loss after tax adjusted for dilution effects divided by the average number of shares after dilution during the period.

Equity per share

Equity at the end of the period divided by the number of shares at the end of the period.

Return on equity

Profit/loss after tax as a percentage of average equity

Return on working capital

Operating profit/loss as a percentage of average working capital (balance sheet total less non-interest bearing liabilities and cash and bank balances).

Free cash flow

Cash flow from operating activities minus cash flow from investing activities excluding acquisitions.

Net interest-bearing debt

Interest bearing debts minus cash and cash equivalents

Equity ratio

Equity as a percentage of the balance sheet total.