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Formpipe Software

Quarterly Report Oct 29, 2021

3159_10-q_2021-10-29_81555119-0084-46e1-8773-5b33b0a3df7f.pdf

Quarterly Report

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Q3 2021.

Third quarter 2021 results Formpipe Software

Net sales of SEK 106 m (96 m)
Recurring revenues of SEK 70 m (63 m)
which corresponds to % of net sales 66 % (66 %)
EBITDA SEK 30 m (27 m)
EBITDA margin 28 % (28 %)
EBIT 17 m (14 m)
EBIT margin 16 % (15 %)
Net profit SEK 12 m (9 m)
Net profit margin 12 % (10 %)
EPS before dilution SEK 0.23 (0.17)
Cash flow from operating activities SEK 30 m (3 m)
ACV SEK 9.4 m (4.3 m)
ARR SEK 291 m (259 m)

ACV SEK 9 m (4 m) ARR SEK 291 m (259 m)

Net sales of SEK 351 m (300 m)
Recurring revenues of SEK 205 m (186 m)
which corresponds to % of net sales 58 % (62 %)
EBITDA SEK 107 m (78 m)
EBITDA margin 31 % (26 %)
EBIT 52 m (41 m)
EBIT margin 15 % (14 %)
Net profit SEK 39 m (29 m)
Net profit margin 11 % (10 %)
EPS before dilution SEK 0.73 (0.55)
Cash flow from operating activities SEK 47 m (65 m)
ACV SEK 25.7 m (13.3 m)
ARR SEK 291 m (259 m)

"Business area Private Sector shows a very positive development with sales growth of 18 percent "

Christian Sundin, CEO Formpipe

Jul-Sep Jan-Sep
(SEK Million) 2021 2020 2021 2020
Net sales 106,4 96,4 350,9 299,8
whereof recurring revenue 70,4 63,3 205,0 186,4
EBITDA 29,7 27,0 107,0 78,4
Margin, % 27,9% 28,1% 30,5% 26,2%
EBIT 17,1 14,0 52,5 40,6
Margin, % 16,1% 14,5% 15,0% 13,5%

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.

Strong growth and good profitability.

Formpipe presents a strong third quarter with sales growth of 10 percent to SEK 106 million (96 million) and where the business area Private Sector shows a very positive development with sales growth of 18 percent. For our long-term growth, it is important that we take advantage of the opportunities our own developed product Lasernet offers, and I am pleased that the business is growing according to plan.

For the third quarter in a row, we see an increased Annual Contract Value (ACV), which is the net of all won contracts with recurring revenue, and during the quarter ACV amounted to SEK 9 million compared with SEK 4 million in the same period last year, including a result of intensified sales efforts. The increase in ACV gives an annual rate of recurring revenue (ARR) at the end of the quarter of SEK 291 million, compared with SEK 259 million during the same period last year.

Our growth strategy is to increase our capacity to support our partners in the sales process and thereby meet the demand for Lasernet, while deliveries are increasingly made through the partner network. The development is proof of the scalability of our business, where we see a strong development for Lasernet as SaaS (Software as a Service).

During the third quarter, we saw strong growth in the public sector in Denmark, where the deal with Landbrugsstyrelsen, which was announced during

the second quarter, contributes to a positive momentum in the market. We see a good demand in Sweden as well, for both products and services. However, we have noted the tough competition for competence, which in the short term affects our ability to grow in this segment. Going forward, our focus will continue to be on recruiting to meet demand and ensure a high presence with our customers.

We expect a continued positive development with good demand in both the private and public sectors.

Christian Sundin, CEO Formpipe

Financial Information

July – September 2021

Net sales for the period increased by 10 % compared to previous year and totalled to SEK 106.4 million (96.4 million). Software revenue increased by 9 % from the previous year and totalled to SEK 75.6 million (69.1 million). Total recurring revenue for the period increased by 11 % from the previous year and totalled to SEK 70.4 million (63.3 million), which is equivalent to 66 % of net sales (66 %). Exchange rate effects have affected net sales negatively by SEK 2.6 million in comparison with the previous year.

January – September 2021

Net sales for the period decreased by 17 % compared to previous year and totalled to SEK 350.9 million (299.8 million). Software revenue increased by 26 % from the previous year and totalled to SEK 264.3 million (209.9 million). Total recurring revenue for the period increased by 10 % from the previous year and totalled to SEK 205.0 million (186.4 million), which is equivalent to 58 % of net sales (62 %). The deal with Landbrugsstyrelsen is included in net sales and software revenues and amounts to SEK 40.9 million. Exchange rate effects have affected net sales negatively by SEK 8.9 million in comparison with the previous year.

Revenue split, Jan-Sep 2021

Recurring revenue, rolling 12 m, mSEK

Annual recurring revenue (ARR), mSEK

July – September 2021

The operating costs for the period totalled to SEK 89.3 million (82.4 million). Personnel costs totalled to SEK 54.9 million (50.2 million). Selling expenses totalled to SEK 12.1 million (9.7 million). Other costs totalled to SEK 22.3 million (19.0 million).

January – September 2021

The operating costs for the period totalled to SEK 298.5 million (259.2 million). Personnel costs totalled to SEK 182.7 million (161.3 million). Selling expenses totalled to SEK 35.7 million (31.2 million). Other costs totalled to SEK 64.5 million (57.2 million). The deal

Financial Information

with Landbrugsstyrelsen is included in operating costs and amounts to SEK 15.1 million.

July – September 2021

Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 29.7 million (27.0 million) with an EBITDA margin of 27.9 % (28.1 %). Operating profit (EBIT) totalled to SEK 17.1 million (14.0 million) with an operating margin of 16.1 % (14.5 %). Net profit totalled to SEK 12.2 million (9.2 million). Exchange rate effects have affected EBITDA negatively by SEK 1.0 million in comparison with the previous year.

January – September 2021

Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 107.0 million (78.4 million) with an EBITDA margin of 30.5 % (26.2 %). Operating profit (EBIT) totalled to SEK 52.5 million (40.6 million) with an operating margin of 15.0 % (13.5 %). Net profit totalled to SEK 39.3 million (29.4 million). The deal with Landbrugsstyrelsen the operating profit positively with SEK 25.8 million. Exchange rate effects have affected EBITDA negatively by SEK 5.0 million in comparison with the previous year.

Sales and EBITDA margin, mSEK

Cash equivalents

Cash and cash equivalents at the end of the period amounted to SEK 0.0 million (27.4 million). The company had interest-bearing debt at the end of the period totalling to SEK 34.7 million (69.8 million), whereof SEK 15.7 million (22.6 million) refers to lease debts according to IFRS 16. The company's total bank overdraft limit amounts to SEK 50.0 million, at the end of the period it was utilized with SEK 18.9 million (- million).

The company's net debt position thereby totalled to SEK 34.7 million (42.4 million), which corresponds to a net debt position of SEK 18.9 million (19.6 million) excluding IFRS 16-related debt.

Deferred tax asset

By the end of the period the company's deferred tax assets attributable to accumulated losses amounted to SEK 9.9 million (SEK 9.8 million).

Equity

Equity at the end of the period amounted to SEK 415.2 million (405.3 million), which was equivalent to SEK 7.73 (7.58) per outstanding share at the end of the period. Changes in the value of the Swedish krona compared to other currencies have changed the value of the group's net assets in foreign currencies by SEK 10.4 million (3.8 million) from the end of the year.

Financial Information

Equity ratio

The equity ratio at the end of the period was 63 % (57 %).

Cash flow from operating activities

Cash flow from operating activities for the period January - September totalled to SEK 47.2 million (65.4 million). Due to increased working capital tied up, the cash flow has been affected negatively compared to previous periods.

Investments and acquisitions

  • Total investments for the period January September amounted to SEK 45.0 million (79.6 million).
  • Investments in intangible assets totalled to SEK 43.0 million (30.6 million) and refer to capitalized product development costs.
  • Investments in tangible and financial assets totalled to SEK 2.1 million (2.9 million).
  • Acquisitions of subsidiaries amounted to SEK 0.0 million (46.1 million).

Financing

During the period January – September the company has redeemed the DKK loan in full.

During the period January – September the company amortized SEK 43.5 million (22.1 million). Whereof SEK 3.3 million (5.4 million) relates to leasing debts.

The existing bank overdraft facility totalling to SEK 50.0 million was utilized with SEK 18.9 million at the end of the period (- million). Leasing related liabilities amounted to SEK 15.7 million (22.6 million) at the end of the period. The company's interest-bearing debt at the end of the period was thereby SEK 34.7 million (69.8 million).

During the period, dividends were paid to the company's shareholders amounting to SEK 35.3 million (32.1 million).

As an outcome from the exercise of the personnel warrant program 2018/2021, 262,150 new shares were issued and payments amounting to SEK 4.7 million (4.6 million) has been added to the Company. At the same time the Company repurchased 234,850 warrants to a value of SEK 4.1 million (1.3 million).

During the period, a new warrant program (2021/2024) has been issued to the company's employees, amounting to 500,000 warrants, which provided the company with payments of SEK 1.3 million (0.8 million).

Data and information become more and more important for the financial development: it is the foundation for many new products and services, which leads to productivity and resource efficiency gains in all sectors of the economy. Being able to take advantage of the possibilities of digitalization has become one of the most important issues of our time. The benefits of being able to collect, process and present data are extensive.

Formpipe's products are used to create, store, distribute, automate, relocate, archive and manage information, data and metadata regarding e.g. scanned documents, e-mail, re-ports, records, business documents or information from other source systems. The goal is to be able to refine and analyze content from one or more sources, to thereby provide the right insights by the right people receiving relevant information when they need it. It is in the Content Services (previously Enterprise Content Management) market that Formpipe has grown to become a market leader in the public sector and a strong challenger in the private sector where we digitalize and streamline customer communication in sectors such as retail, finance and manufacturing.

The growth in the market is fuelled in large part by the organizational and corporate-wide need to streamline operations and meet legal requirements and regulations. To be able to get the value out of the collective amount of information at companies and organizations, applications and services are needed – in order to securely – collaborate, search, analyze, process and distribute data and content. Growth drivers tend to gain strength as the amount of data and information increases.

Gartner's forecast for the global market is an average annual growth (CAGR) of 10 percent in 2020-2024. The Content Services market is estimated to be USD1 11 billion in system revenue.

An important part of the change of the Content Services market is also that the development is moving increasingly towards cloud-based solutions, where the customers pay for what is used and where costs for development, operations, maintenance, upgrade and support are included in the running agreement. The transition to SaaS is taking place very quickly now and Gartner estimates that the SaaS revenues will reach up to 60 per cent of the total sales of software in 20242 .

This development is well in line with Formpipe's reality where growing numbers of the Company's customers choose to shift to Formpipe's cloud services for the standard products and with the Company's development of service modules that can process information both from Formpipe's existing systems and other systems. From 2017 Formpipe has had an average annual SaaS revenues growth of 55 percent.

Private sector

The global ERP software market is estimated to reach USD 50 billion in 20243 . As cloud solutions are becoming increasingly accepted due to their scalability, reliability and flexibility, many ERP customers are changing their views on their internal IT architecture. This shift, where customers see the benefits of moving to the cloud, opens up new opportunities for Formpipe. Lasernet is an add-on to ERP systems and enables business documents to be delivered in exactly the format and layout desired. Lasernet continues its strong growth internationally, a positive development that is primarily a result of Formpipe's close collaboration with Microsoft and their offering in the cloud (Azure) regarding Microsoft Dynamics. Lasernet is a natural add-on to Dynamics and improves the customer experience through efficient document management.

Banking and partnership with Temenos

Through the acquisition of EFS in 2020, Formpipe has further strengthened its position in this area as EFS product Autoform DM together with Lasernet is a valuable add-on to business systems from Temenos, a well-established and increasingly strong system supplier to the financial sector.

Formpipe is strategically well aligned with Temenos' growth areas within SaaS-transformation and expansion on the North American market. Formpipe's

1 Enterprise Application Software Forecast Q420, Gartner, Inc. 2020

2 Market Trends: Cloud Shift — 2020 Through 2024, Gartner, Inc. 2020

3 Enterprise Application Software Forecast Q420, Gartner, Inc. 2020

Market

products are sold and implemented as customers buy and implement Temenos' systems. During 2020 Temenos won 64 new clients and had 307 go-live across their customer base.4

Public Sector

Formpipe has a leading market position in the public sector in both Sweden and Denmark. For many years, we have delivered systems for automated processes for case and document management.

In the Swedish public sector, Formpipe has a stable customer base in municipalities, regions and authorities. In the public sector Sweden, up to SEK 45 billion is invested in IT every year5 . The Swedish government's ambition is for state authorities, municipalities and regions to be the best in the world at using the opportunities of digitalization to create an efficient public sector – a simpler everyday life for

individuals and companies, more jobs and increased welfare. Digital solutions and automation are an important component for meeting the growing welfare needs and at the same time increasing the service to the citizens.

Formpipe is also a leading supplier of information management software in the Danish public sector. Digital solutions and automation create opportunities to meet the growing welfare needs and at the same time increase the service to the citizens.

The employers' organization Dansk Industri believes that a modernization and digitalization of the public sector can free up DKK 20 billion by 20256 . Money that can then be returned to the public sector and help increase the level of service.

4 Temenos Annual Report 2020 5 Regeringen.se

6 www.danskindustri.dk

New growth strategy and financial targets

The new strategy captures opportunities to deliver on a number of markets with the self-developed and successful product Lasernet. Investments in growth will primarily take place through capacity building with focus on the USA and Europe. The build-up phase provides a not insignificant short-term negative margin impact before reaching the goals.

Financial targets:

  • The average annual revenue growth will amount to 10 percent 2021 – 2025.
  • 70 percent of total revenue will consist of recurring revenue by 2025.
  • The operating margin will gradually be strengthened and exceed 20 percent in 2025.
  • Over time, at least 50 percent of the year's net income will be distributed as dividends to our shareholders.

Formpipe and Danish Landbrugsstyrelsen sign agreement worth approximately DKK 50 million

Formpipe and Danish Landbrugsstyrelsen (Board of Agriculture) have agreed to sign an agreement on further development of the solution that Formpipe for several years has developed on behalf of Landbrugsstyrelsen. The agreement will run for two years and the value is estimated at approximately DKK 50 Million. Within the framework of the agreement, Landbrugsstyrelsen acquires the right to procure continued operation and development via third party after June 2023.

Annual General Meeting

At the AGM on April 28, 2021, decisions were made regarding:

  • Adoption of the income statement and balance sheet for the 2020 financial year.
  • Adoption profit distribution.

  • Dividend of SEK 0.66 (0.60) per share.

  • The Board members and the CEO was granted discharge from liability for the financial year 2020.
  • The re-election of Annikki Schaeferdiek, Åsa Landén Ericsson, Martin Bjäringer, Peter Lindström, Erik Syrén and Bo Nordlander as Board members. Bo Nordlander was elected Chairman of the Board.
  • The re-election of the auditing firm PricewaterhouseCoopers AB as auditors of the Company with Erik Bergh as the principal auditor.
  • Principles for the Nomination Committee.
  • Authorization for the Board to issue new shares or convertibles.
  • Authorization for the Board to acquire and transfer the company's own shares.
  • Authorization for the Board to repurchase warrants from the personnel.
  • Authorization for the Board to issue warrants to the personnel.
  • Approved the issue of share warrants to the personnel.
  • Approved the proposed guidelines for remuneration to senior executives.

Increased number of shares

During the period the personnel warrant program 2018/2021 was exercised. A total of 262,150 new shares were issued from this program. The number of shares and votes in the Company has therefore increased with 262,150 and share capital has increased with SEK 26,215. After the issue of new shares, the total number of outstanding shares and votes amounts to 53,726,057 and the share capital amounts to SEK 5,372,605.7.

No significant events have occurred during the period of July-September 2021.

Nomination Committee of Formpipe prior to the Annual General Meeting 2022

The Chairman of the Board has convened the Nomination Committee and after consultation with the

Significant events

company's largest shareholders in terms of votes as of September 30, 2021, the Nomination Committee consists of the following members:

  • Malin Ruijsenaars, representing AB Grenspecialisten with 10,36% of shares and votes.
  • Patrik Jönsson representing SEB Investment Management with 8,91 % of shares and votes.
  • Marika Svärdström, representing Martin Bjäringer with 7,68% of shares and votes.

The Nomination Committee will prepare proposals for the 2022 Annual General Meeting regarding, among other things, the Chairman of the Annual General Meeting, Board members, Chairman of the Board, the Board's remuneration, auditors, auditors' fees, the composition of the Nomination Committee and tasks prior to the 2023 Annual General Meeting.

Shareholders who wish to submit proposals to the Nomination Committee can do so via e-mail to [email protected]. Last day to submit proposals to the Nomination Committee prior to the Annual General Meeting of the Board 2022 is 16th of March 2022.

.

Employees

The number of employees at the end of the reporting period totalled to 276 persons (244 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 other changes in the risk and uncertainty factors for the group and the parent company.

Transactions with related parties

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 1-20 and the interim report on pages 1-9 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 Swedish software company in the field of Content Services (previously Enterprise Content Management, ECM). Several thousand customers in more than 60 countries currently entrust us and our services. Our marketleading position gives us clear competitive advantages in the development and sale of software for effective and valuable information services. The Company focuses on products for document and records management, automation of informationintensive business processes, e-archives, data quality and smart management of customer communication.

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

Calendar for financial information

February 16, 2022 Interim report Jan-Dec
April 27, 2022 Interim report Jan-Mar
April 27, 2022 Annual General Meeting
July 15, 2022 Interim report Jan-Jun
October 27, 2022 Interim report Jan-Sep

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: [email protected]

Stockholm 29th of September, 2021 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 [email protected] | www.formpipe.se

Text Jul-Sep Jan-Sep
(SEK 000) 2021 2020 2021 2020
Net Sales 106 429 96 383 350 943 299 772
Sales expenses -12 064 -9 718 -35 716 -31 198
Other costs -22 327 -19 042 -64 534 -57 195
Personnel costs -54 945 -50 192 -182 746 -161 318
Capitalized work for own account 12 592 9 606 39 094 28 347
Operating profit/loss before depreciation/amortization
and non-comparative items (EBITDA) 29 684 27 037 107 041 78 408
Depreciation/amortization -12 584 -13 075 -54 550 -37 856
Operating profit/loss (EBIT) 17 100 13 962 52 490 40 552
Financial income and expenses -664 -356 -1 482 -798
Exchange rate differences -455 -1 593 281 -1 389
Tax -3 742 -2 835 -11 945 -8 988
Net profit for the period 12 239 9 179 39 345 29 376
Of which the following relates to:
Parent company shareholders 12 239 9 179 39 345 29 376
Other comprehensive income
Translation differences 6 736 2 939 10 356 3 819
Other comprehensive income for the period, net after tax 6 736 2 939 10 356 3 819
Total comprehensive income for the period 18 975 12 117 49 701 33 195
Of which the following relates to:
Parent company shareholders 18 975 12 117 49 701 33 195
EBITDA margin, % 27,9% 28,1% 30,5% 26,2%
EBIT margin, % 16,1% 14,5% 15,0% 13,5%
Profit margin, % 11,5% 9,5% 11,2% 9,8%
Earnings per share attributable to the parent company's shareholders during the
period (SEK per share)
- before dilution 0,23 0,17 0,73 0,55
- after dilution 0,23 0,17 0,73 0,55
Average no. of shares before dilution, in 000 53 726 53 464 53 580 53 303
Average no. of shares after dilution, in 000 53 852 53 659 53 825 53 502
30 Sep 31 Dec
(SEK 000) 2021 2020 2020
Intangible assets 528 922 538 274 523 623
Tangible assets 21 496 29 594 27 138
Financial assets 5 477 3 739 3 284
Deferred tax asset 9 896 - 3 645
Current assets (excl. cash equivalents) 107 091 96 489 104 235
Cash equivalents - 27 370 58 593
TOTAL ASSETS 672 882 695 466 720 517
Equity 415 162 405 318 398 865
Long-term liabilities 55 055 85 317 71 145
Current liabilities 202 665 214 631 250 507
TOTAL EQUITY AND LIABILITIES 672 882 705 265 720 517
Net interest-bearing debt (-) / cash (+) -34 659 -42 451 -5 594
Equity attributable to the parent company's shareholders
Other Profit/loss
Share contributed Other brought
(SEK 000) capital capital reserves forward Total
Balance at January 1, 2020 5 317 208 600 23 712 162 498 400 129
Comprehensive income - - - - -
Net profit for the period - - - 29 376 29 376
Other comprehensive income items - - 3 819 - 3 819
Total comprehensive income - - 3 819 29 376 33 195
Transaction with owners
Dividend - - - -32 078 -32 078
Share issue 29 4 553 - - 4 582
Repurchase of warrants - -1 260 - - -1 260
Employee warrant schemes - 750 - - 750
Total transaction with owners 29 4 044 - -32 078 -28 006
Balance at September 30, 2020 5 346 212 644 27 531 159 795 405 318
Balance at January 1, 2021 5 346 212 644 9 066 171 807 398 865
Comprehensive income - - - - -
Net profit for the period - - - 39 345 39 345
Other comprehensive income items - - 10 356 - 10 356
Total comprehensive income - - 10 356 39 345 49 701
Transaction with owners
Acquisition of non-controlling interests - - - - -
Dividend - - - -35 286 -35 286
Share issue 26 4 666 - - 4 692
Repurchase of warrants - -4 119 - - -4 119
Employee warrant schemes - 1 310 - - 1 310
Total transaction with owners 26 1 857 - -35 286 -33 403
Balance at September 30, 2021 5 373 214 501 19 422 175 866 415 162
Jul-Sep Jan-Sep
(SEK 000) 2021 2020 2021 2020
Cash flow from operating activities
before working capital changes 14 368 26 611 95 784 68 644
Cash flow from working capital changes 15 669 -23 473 -48 605 -3 209
Cash flow from operating activities 30 037 3 138 47 179 65 435
Cash flow from investing activities -13 947 -57 866 -45 160 -79 554
Of which acquisition/divesture of business activities - -46 067 - -46 067
Cash flow from financing activities -18 194 13 075 -63 067 7 464
Of which dividend paid - -32 078 -35 286 -32 078
Cash flow for the period -2 103 -41 653 -61 048 -6 655
Change in cash and cash equivalent
Cash and cash equivalent at the beginning of the period 2 016 68 854 58 593 33 682
Translation differences 88 169 2 455 342
Cash flow for the period -2 103 -41 653 -61 048 -6 655
Cash and cash equivalent at the end of the period - 27 370 - 27 370
(SEK 000) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021
License 10 157 7 508 10 235 5 817 8 971 6 324 47 775 5 255
SaaS 12 323 12 884 13 373 13 755 14 571 14 171 15 458 17 038
Support and maintenance 46 705 47 952 48 849 49 552 52 592 52 214 52 749 53 332
Software revenues 69 185 68 344 72 457 69 123 76 134 72 709 115 982 75 625
whereof recurring revenue 59 028 60 836 62 222 63 307 67 163 66 385 68 208 70 369
Deliveries 33 874 34 749 27 839 27 260 27 219 28 832 26 991 30 805
Net sales 103 059 103 093 100 296 96 383 103 353 101 540 142 974 106 429
Sales expenses -12 918 -11 210 -10 270 -9 718 -10 083 -12 018 -11 634 -12 064
Other costs -17 220 -19 037 -19 116 -19 042 -20 401 -19 690 -22 518 -22 327
Personnel costs -52 979 -54 870 -56 256 -50 192 -58 794 -63 218 -64 583 -54 945
Capitalized development costs 8 430 9 148 9 593 9 606 11 860 12 948 13 555 12 592
Total operating expenses -74 687 -75 970 -76 048 -69 346 -77 419 -81 977 -85 180 -76 745
EBITDA 28 372 27 122 24 248 27 037 25 935 19 563 57 793 29 684
% 27,5% 26,3% 24,2% 28,1% 25,1% 19,3% 40,4% 27,9%
Depreciation/amortization -13 059 -12 302 -12 479 -13 075 -13 235 -13 831 -28 135 -12 584
EBIT 15 314 14 820 11 769 13 962 12 699 5 732 29 659 17 100
% 14,9% 14,4% 11,7% 14,5% 12,3% 5,6% 20,7% 16,1%

The Group's segments are divided according to which customer groups they target. The segments are divided into SE Public, DK Public, Private and Other and reflect the Group's internal reporting and follow-up of Group management.

The SE Public and DK Public segments find their customers in Sweden's and Denmark's public sectors. Segment Private collects the Group's offers that are aimed at customers outside the public sector and are not bound to any particular geographic market. Segment Other includes the Group's older products that are not included in any of the other segments and the Group's overhead costs.

In the Group's follow-up on the segments, the intercompany invoicing (revenues and costs) is presented as a net because of the substantial invoicing within the segments related to royalties to IP owning entities. The line Intercompany net includes de intercompany revenues and costs netted out to reflect a more accurate view of the segments. The Group has adjusted the segment overview for financial year 2020.

Jul-Sep 2021 Jan-Sep 2021
SE DK SE
DK
(SEK 000) Public Public Private Other Group Public Public Private Other Group
License 0 1 505 3 656 94 5 255 4 861 4 588 8 953 40 951 59 353
SaaS 3 046 1 782 12 210 - 17 038 9 577 4 944 32 146 - 46 667
Support & Maintenance 20 259 14 512 17 526 1 034 53 332 60 229 43 283 51 612 3 171 158 295
Delivery 3 397 20 693 6 715 0 30 805 11 679 54 323 20 625 0 86 627
Net sales 26 702 38 492 40 107 1 128 106 429 86 346 107 139 113 336 44 122 350 943
Costs, external -16 397 -21 087 -34 702 -4 559 -76 745 -57 543 -68 130 -102 643 -15 586 -243 903
Intercompany net 99 -102 4 - 0 254
-257
4 - 0
EBITDA 10 404 17 302 5 409 -3 431 29 684 29 057 38 751 10 696 28 536 107 041
% 39,0% 45,0% 13,5% -304,0% 27,9% 33,7% 36,2% 9,4% 64,7% 30,5%
Jul-Sep 2020 Jan-Sep 2020
SE DK SE DK SE DK
(SEK 000) Public Public Private Public Public Public Public Private Other Group
License 888 594 4 335 - 5 817 3 813 5 318 14 428 - 23 559
SaaS 4 385 1 502 7 868 - 13 755 13 261 4 545 22 206 - 40 013
Support & Maintenance 19 686 12 847 15 886 1 133 49 552 59 856 38 368 44 669 3 461 146 353
Delivery 3 318 17 907 6 035 0 27 260 11 485 63 975 14 387 1 89 848
Net sales 28 277 32 849 34 124 1 133 96 383 88 415 112 205 95 690 3 462 299 772
Costs, external -11 806 -23 222 -26 700 -7 629 -69 357 -47 535 -80 972 -76 184 -16 685 -221 376
Intercompany net -19 19 11 - 11 96 -24 -61 - 11
EBITDA 16 452 9 647 7 435 -6 496 27 037 40 976 31 209 19 445 -13 222 78 408
% 58,2% 29,4% 21,8% -573,2% 28,1% 46,3% 27,8% 20,3% -381,9% 26,2%
Jul-Sep 2021 Jan-Sep 2021
SE DK SE DK
(SEK 000) Public Public Private Other Group Public Public Private Other Group
ARR In - SaaS 13,9 7,0 48,0 - 68,9 13,3 5,9 35,4 - 54,7
ARR In - Support & Maint. 82,8 54,6 69,5 3,8 210,8 81,6 51,5 68,3 4,0 205,5
ARR In - FX - 0,3 1,3 - 1,6 - 0,9 3,9 - 4,8
ARR In* 96,7 61,9 118,8 3,8 281,3 95,0 58,4 107,5 4,0 264,9
ACV - SaaS 0,6 2,1 6,3 - 9,0 1,2 3,1 18,2 - 22,5
ACV - Support & Maintenance -0,3 1,7 -1,0 -0,0 0,4 0,9 4,2 -1,6 -0,3 3,2
ACV - Net 0,3 3,7 5,4 -0,0 9,4 2,1 7,3 16,6 -0,3 25,7
ARR Out - SaaS 14,5 9,1 54,0 - 77,5 14,5 9,1 54,0 - 77,5
ARR Out - Support & Maint. 82,5 56,6 70,2 3,8 213,1 82,5 56,6 70,2 3,8 213,1
ARR Out 97,0 65,7 124,2 3,8 290,6 97,0 65,7 124,2 3,8 290,6
jul-sep 2020 jan-sep 2020
(SEK 000) SE
Public
DK
Public
Private Other Koncern SE
Public
DK
Public
Private Other Koncern
ARR In - SaaS 13,8 5,1 30,9 - 49,8 12,7 6,2 26,1 - 45,0
ARR In - Support & Maint. 79,4 48,0 56,4 4,3 188,1 79,0 41,9 57,4 4,5 182,7
ARR In - FX - 0,2 0,2 - 0,4 - 0,7 0,9 - 1,6
ARR In - Acquired - - 16,0 - 16,0 - - 16,0 - 16,0
ARR In 93,2 53,3 103,4 4,3 254,2 91,6 48,8 100,4 4,5 245,2
ACV - SaaS -1,0 -0,1 3,8 - 2,7 0,2 -1,4 8,0 - 6,8
ACV - Support & Maintenance 0,4 2,8 -1,6 -0,1 1,6 0,9 8,7 -2,7 -0,3 6,5
ACV - Net -0,5 2,7 2,2 -0,1 4,3 1,0 7,3 5,3 -0,3 13,3
ARR Out - SaaS 12,9 4,9 34,5 - 52,2 12,9 4,9 34,5 - 52,2
ARR Out - Support & Maint. 79,8 51,1 71,2 4,2 206,3 79,8 51,1 71,2 4,2 206,3
ARR Out 92,7 56,0 105,7 4,2 258,5 92,7 56,0 105,7 4,2 258,5

* Contracts with a total ARR of 3,8 mSEK have been reclassified from SaaS to Support & Maintenance as per January 1, 2021, due to the stipulations in governing framework agreement in DK Public.

2017-01-01 2018-01-01 2019-01-01 2020-01-01 2021-01-01
2017-12-31 2018-12-31 2019-12-31 2020-12-31 2021-09-30
Shares outstanding beginning of the period 51 273 608 51 873 025 52 887 406 53 173 907 53 463 907
Share issue from warrant programme 599 417 314 576 286 501 290 000 262 150
Non-cash issue 0 699 805 0 0 0
Shares outstanding at the end of the period 51 873 025 52 887 406 53 173 907 53 463 907 53 726 057
Jan-Sep
2021 2020
Employees at end of period 276 244
Net sales, SEK 000 350 943 299 772
EBITDA, SEK 000 107 041 78 408
EBIT, SEK 000 52 490 40 552
Net profit for the period, SEK 000 39 345 29 376
EBITDA margin, % 30,5% 26,2%
EBIT margin, % 15,0% 13,5%
Profit margin, % 11,2% 9,8%
Return on equity, %* 12,5% 10,3%
Return on working capital, %* 14,8% 13,0%
Equity ratio, % 63% 57%
Equity per outstanding share at the end of the period, SEK 7,73 7,58
Earnings per share - before dilution, SEK 0,73 0,55
Earnings per share - after dilution, SEK 0,73 0,55
Share price at the end of the period, SEK 30,50 28,00

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

Jul-Sep Jan-Sep
(SEK 000) 2021 2020 2021 2020
Net sales 28 961 30 072 92 706 97 131
Operating expenses
Sales expenses -3 809 -1 122 -6 759 -3 067
Other costs -11 607 -11 396 -35 347 -32 332
Personnel costs -17 556 -15 935 -60 572 -52 664
Depreciation/amortization -805 -1 585 -2 136 -4 673
Total operating expenses -33 776 -30 038 -104 814 -92 737
Operating profit/loss -4 815 34 -12 108 4 395
Other financial items -1 192 -356 -1 765 193
Tax - - - 2
Net profit for the period -6 007 -322 -13 873 4 590
30 Sep 31 Dec
30 Sep
(SEK 000) 2021 2020 2020
Intangible assets 9 072 7 560 6 851
Tangible assets 1 090 854 981
Financial assets 348 606 346 809 346 446
Current assets (excl. cash equivalents) 58 866 44 496 44 787
Cash and bank balances - - 30 666
TOTAL ASSETS 417 635 399 718 429 732
Restricted equity 23 063 23 037 23 037
Non-restricted equity 120 096 167 628 167 398
Total equity 143 159 190 665 190 435
Long-term liabilities - 32 310 29 434
Current liabilities 274 477 176 744 209 863
TOTAL EQUITY AND LIABILITIES 417 635 399 718 429 732

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

30 Sep 31 Dec
(SEK 000) 2021 2020 2020
Pledged assets - - -
Contingent liabilities - - -

Definitions

Formpipe uses alternative key figures, also called APM (Alternative Performance Measures). Formpipe's APM's are calculated from the financial reports, which are prepared in accordance with applicable rules for financial reporting, where prepared figures are 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.

Annual Contract Value (ACV)

Annual recurring revenue of the period's won (ACV +) and lost (ACV -) 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.

FX effect

Revaluation of ARR IN to the closing balance exchange rates.

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, acquisition-related 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, acquisition-related 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).

Definitions

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.

Ordering financial information

Financial information and other related corporate information is published on www.formpipe.se Information may also be ordered from: Formpipe, Box 23131, SE-104 35 Stockholm and on [email protected]

Contact person for investor relations CFO Joakim Alfredson [email protected]

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