Vitec Software Group B — Audit Report / Information 2016

Feb 16, 2017

Year-end report January - December 2016

Strengthened cash flow despite lower margins

SUMMARY FOR JANUARY – DECEMBER 2016

• Net sales SEK 675 M (618)
• Profit before tax SEK 81,9 M (94,7)
• Operating margin 13,1 % (16,3)
• Earnings per share before dilution SEK 2,27 (2,66)
• Cash flow from operations SEK 158,5 M (139,8)
• The board proposes a dividend of SEK 1,00 (0,90) per share

SUMMARY FOR OCTOBER - DECEMBER 2016

• Net sales SEK 193 M (170)
• Profit before tax SEK 24,3 M (26,9)
• Operating margin 13,3 % (16,7)
• Earnings per share before dilution SEK 0,71 (0,86)
• Cash flow from operations SEK 34,7 M (33,9)
• Acquisition of Plania AS

CEO's comments

Vitec continues to grow and is now listed among the midsized Swedish companies. The Group's risk diversification across countries and business areas has further improved during the year. Sweden's share of Group sales were 42 percent this year compared to nearly 50 last year.

We made three acquisitions during the year. The latest, Plania AS in Stavanger December 2016, along with the other acquisitions, added approximately 110 million to the Group's turnover and profitability.

From an earnings point of view 2016 was a transitional year, although if cleared for negative currency effects the operating profit was slightly better than last year. Cash flow continues to improve. Fourth quarter results were weaker than last year,

but last year non-recurring items of close to five million flowed into Q4 2015, which partly distorts the comparison between years.

The proportion of recurring revenues decreased slightly to 77% (78%). However, the decline was less than we initially estimated. The business model is strong and well rooted in the Group. It has a momentum that drives the internal culture and business in the desired direction more powerful than we dared to hope.

The operating margin for the full year was 13.1 percent, which is under our target of 15 percent. Market demand in our niches is sustainable in a long-term perspective, which means that our foundation is strong to continuously strive for improving efficiency and profitability.

The number of active acquisition dialogues remains high and we continue to devote significant resources to maintain and further develop these dialogues. Our financial position and readiness for acquisitions is good, and we see significant opportunities for further acquisition-based growth.

With a clear shift from traditional license sales to subscription of cloud-based systems reduces reliance on individual license sales, which increases our long-term ability to control our business. This, together with our people's great capacity to innovate and integrate acquisitions, provides good conditions for long-term development of our business. With the acquisition of well-established companies and a high proportion of recurring revenues, Vitec continues the path to act in several independent and specialized niches to achieve sustainable profitable growth. As usual, we increase the dividend. Now for the 15th consecutive year.

Lars Stenlund, CEO

January - December 2016

Vitec continues to grow. Plania AS, which will belong to Business Area Real Estate, has been acquired during the last quarter and Tietomitta OY and Futursoft OY were acquired earlier in 2016. Each acquisition allows Vitec to achieve a better balance between various business areas, and the three new acquisitions during the year are helping to even out the distribution of profits and sales. Our product mix is also positively affected through our acquisitions and the software development we do in existing business. Our products are relatively evenly distributed across various phases, from recently launched to mature. For the year as a whole, the Estate Agents, Energy and Health business areas are reporting lower profits than in 2015, whereas the Finance & Insurance, Real Estate and Auto business areas are all reporting higher profits. Business Area Environment has been added during the year and is contributing with a positive impact on profits and Business Area Media was sold in July 2016.

Business Area AUTO

Business Area Auto is reporting slightly lower profits during the last quarter compared to the same period in 2015. For the full year, however, both sales and profits are increasing. Erling Brækkan has been recruited as the new business Area Manager for our Norwegian operation. Erling is assuming responsibility for the companies Vitec Autodata AS and Vitec Infoeasy AS. Our business in Denmark are developing according to plan for all product areas. The cloud-based offering from Futursoft has been received positively by the market in Finland.

Business Area ENERGY

Business Area Energy has continued to increase the number of new customers in Europe as a result of its intensified investment in marketing during the year. The rise in incoming orders for our GIS system is also worth mentioning. The business area is in a strong position with an operating margin of 28%, even though this is slightly lower than the even stronger 2015.

Business Area REAL ESTATE

The Norwegian software company Plania AS was acquired on the 5:th of December,. Plania is an established, mature company that offers software developed in-house for real estate management, operation and maintenance. In Sweden, the business area is growing through upgrades for existing customers, at the same time as achieving high sales to new customers. More and more customers are opting for our cloud service, which is providing our customers with greater benefit from our software at the same time as enabling us to provide an even better level of service. Both sales and profit levels are growing for Business Area Real Estate.

Business Area FINANCE & INSURANCE

Sales and profits developed in a positive direction during the fourth quarter. All three countries in which we have operations, Sweden, Norway and Denmark, are developing in line with our expectations. During the period, Fredrik Glifberg has been recruited as the new business area manager for our operation in Sweden. We have seen increased demand for our products in Denmark during the year. Demand is being driven by the fact that we have now launched the latest version of our product, as well as by new regulations in the market such as MiFiD II. In December, a contract was signed with PensionDanmark with an initial value of DKK 8 million.

Business Area HEALTH

During the last quarter, Business Area Health has continued to focus on delivery to a couple of major customers. As we have mentioned in previous reports, this is having a negative impact on profitability, although in the long term the business area will be strengthened through increased recurring revenue. The deliveries are continuing according to plan, and we are expecting them to be completed during the first half of 2017. The business area is reporting increased income and falling profits. Recurring income during the year has increased by 12% in local currency.

Business Area MEDIA

In July, the operations within Business Area Media were sold to XLENT Consulting Holding AB.

Business Area ESTATE AGENTS

Business Area Estate Agents is reporting lower profits and sales for 2016, with various major customers leaving in favor of alternatives developed in-house. While this has been a year with many challenges, we welcome the fact that we are finishing the year with a strong offering. Thanks to our intensive development work, we are the market-leaders and supply the most modern solutions for estate agents in Norway and Sweden. Our products – Next and Express – are fully mobile and suitable for all types of computers, tablets and mobile phones, with open integration options for supplementary systems. 2017 will continue to be an intensive year in terms of development but we are already adjusting so that we can offer our new products to the market at an increasingly rapid rate.

Financial information

SALES AND RESULTS

October-December 2016

REVENUES

Net sales for the period amounted to SEK 192,6 million (170,1), which represents an increase of 13 %. Recurring revenue for the period increased by 12 % from the previous year and amounted to SEK 140,3 million (125,4), corresponding to 72,9 % (73,7) of net sales. License revenue declined marginally from the previous year and amounted to SEK 9,1 million (7,9). Service revenues increased by 15 % from the previous year and amounted to SEK 37,3 M (32,4). The acquired company Tietomitta OY, which was consolidated from 5th of July, contributed during the period with net sales of SEK 9,6 million. Futursoft OY, which was consolidated from 7th of September contributed with SEK 12,5 million. Plania AS, which was consolidated from 5th of December contributed with SEK 2,2 million.

RESULTS

Operating profit amounted to SEK 25,6 million (28,4) with an operating margin of 13,3 % (16,7). Profit after tax amounted to SEK 21,0 million (25,2). Earnings per share before dilution were SEK 0,71 (0,86).

January-December 2016

REVENUES

Net sales for the period amounted to SEK 675,4 million (618,4), which represents an increase of 9 %. Recurring revenue for the period increased by 8 % from the previous year and amounted to SEK 518,5 million (480,6), corresponding to 76,8 % (77,7) of net sales. License revenue increased by 7 % from the previous year and amounted to SEK 24,8 million (23,1). Service revenues increased by 14 % from the previous year and amounted to SEK 121,1 M (106,2). The acquired company Tietomitta OY, which was consolidated from 5 July contributed during the period with net sales of SEK 18,4 million. Futursoft OY, which was consolidated from September 7th contributed with 18,8 million. Plania AS, which was consolidated from December 5th contributed with SEK 2,2 million.

RESULTS

Operating profit amounted to SEK 88,3 million (100,6) with an operating margin of 13,1 % (16,3). The decline in operating profit is attributable to higher depreciation on intangible assets and unrealized exchange losses. Profit after tax amounted to SEK 66,8 million (78,2). Earnings per share before dilution were SEK 2,27 (2,66).

LIQUIDITY AND FINANCIAL STATUS

The Group's cash and cash equivalents, including short-term investments, at end of period amounted to SEK 80,9 million (60,3). In addition to these cash and cash equivalents, was a bank overdraft facility of SEK 20 million, and SEK 5,0 million in an unused credit facility of SEK 250 million. During the period, SEK 168,5 million was used to finance acquisitions. Cash flow from operating activities was SEK 158,5 million (139,8). Investments totaled SEK 82,3 million in capitalized work, SEK 1,5 million in other intangible assets and SEK 9,0 million in tangible assets.

Total interest-bearing liabilities amounted on December 31, 2016 to SEK 383,5 million (241,1) distributed on long term debt SEK 339,4 million (207,2) and short-term interest-bearing liabilities SEK 44,1 million (33,9). During the period the convertible loan was reclassified from long- to short-term debt since when due date is in November 2017.

Equity attributable to Vitec's shareholders amounted to SEK 334,2 million (271,5). The equity ratio was 30 % (31).Payed dividend amounts to SEK 0,90 per share, totaling SEK 26,5 million.

Operations

Vitec Group operations are controlled and organized in seven segments (business areas). For more information on each business area, refer to www.vitecsoftware.com. The business areas are; Auto, Energy, Real Estate, Finance & Insurance, Health, Media, Environment and Estate Agent.

BUSINESS AREAS	Auto			Energy	Real Estate		Finance & Insurance		Health		Media		Environment		Estate Agent
	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015
	Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan	Jan
	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec	Dec
Recurring revenues	96,8	60,0	18,4	17,3	89,2	82,0	99,7	77,2	54,6	48,3	2,7	4,6	11,6	-	145,1	191,1
License revenue	3,0	0,5	0,0	0,0	11,5	9,2	6,1	6,8	0,0	0,3	0,0	0,8	2,4	-	1,8	5,6
Services revenue	14,1	7,1	7,4	6,6	55,2	49,3	20,3	16,5	11,2	12,1	1,9	5,2	3,1	-	7,8	9,2
Other income	5,2	3,4	0,1	0,2	2,5	2,0	0,6	0,8	0,3	0,8	0,0	0,0	1,4	-	0,5	1,1
Net sales	119,2	71,1	25,9	24,1	158,4	142,6	126,6	101,2	66,2	61,5	4,6	10,5	18,4	-	155,3	207,0
Recurring revenue as a percentage of net
sales	81%	84%	71%	72%	56%	58%	79%	76%	83%	79%	58%	44%	63%	-	93%	92%
Operating profit	19,2	14,9	7,3	8,8	29,8	24,9	20,3	13,9	1,9	5,7	1,0	2,4	2,4	-	11,1	33,2
Operating margin	16%	21%	28%	37%	19%	17%	16%	14%	3%	9%	21%	23%	13%	-	7%	16%

Business Area AUTO

The segment consists of Vitec AutoData AS, Vitec Datamann A/S, Vitec Infoeasy AS and Futursoft OY. The business area offers software specialized for the unique needs of the automotive and the machinery industries. Datamann and Infoeasy were consolidated as of July 1 and 2, 2015 and Futursoft was consolidated as of September 7 2016.

Business Area ENERGY

The segment consists of Vitec Energy AB. The business area offers business systems for forecasting wind power, electricity and heating needs, as well as for the technical management and maintenance of distribution networks. Business Area REAL ESTATE The segment consists of Vitec Fastighetssystem AB, Vitec Förvaltningssystem AB, Vitec Capifast AB,Vitec Software AB and Vitec Plania AS. The business area offers business systems for construction and real estate companies. Plania was consolidated as of December 5, 2016. Business Area FINANCE & INSURANCE The segment consists of Vitec Capitex AB, the Group Aloc A / S and Vitec Nice AS. The business area offers business systems for the finance and insurance industry, as well as standardized software for tax calculations, pension calculations and housing calculations. Business Area HEALTH The segment consists of the Group Acuvitec Oy. The business area offers business systems for electronic handling of medical records for healthcare.

Business Area MEDIA

During the period, the Group Vitec Veribas was sold. Remaining in the segment is 3L Media AB. Net sales and profit for the period includes the Group Vitec Veriba before date of sale. The business area offers

Business Area ENVIRONMENT

The segment consists of Tietomitta OY, which was acquired July 5, 2016. The business area offers a product, which is an ERP system for waste management companies. It manages the entire chain of waste business systems for newspaper publishers and companies supplying special solutions within distribution.

management, from pick-up to billing, accounting and reporting.

Business Area ESTATE AGENTS

The segment consists of Vitec Mäklarsystem AB, Capitex AB, Vitec IT-Makeriet AS, the Group Vitec Megler AS, Vitec Fox AS and ADservice Scandinavia AB. The business area offers business systems for real estate agents.

Operating profit Jan-Dec (MSEK) before acquisition related costs

RESULT OVERVIEW FOR SEGMENTS

BUSINESS AREA	PROFIT BEFORE ACQUISITION NET SALES (MSEK) RELATED COSTS (MSEK)
	2016 Oct-Dec	2015 Oct-Dec	2016 Jan-Dec	2015 Jan-Dec	2016 Oct-Dec	2015 Oct-Dec	2016 Jan-Dec	2015 Jan-Dec
Auto	40,1	26,1	119,2	71,1	6,6	7,8	19,2	14,9
Energy	6,7	6,8	25,9	24,1	1,3	3,0	7,3	8,8
Real Estate	47,3	41,0	158,4	142,6	9,6	6,8	29,8	24,9
Finance & Insurance	34,6	26,9	126,6	101,2	6,6	3,1	20,3	13,9
Health	19,5	15,4	66,2	61,5	1,2	-0,2	1,9	5,7
Media	0,2	2,3	4,6	10,5	0,2	0,2	1,0	2,4
Environment	9,7	0,0	18,4	0,0	1,3	0,0	2,4	0,0
Estate Agent	34,3	51,5	155,3	207,0	-0,1	8,6	11,1	33,2
Shared	0,3	0,0	1,0	0,4	-	-	-	-
Vitec Group	192,6	170,1	675,4	618,4	26,6	29,2	93,1	103,9
Acquisition-related costs					-1,0	-0,8	-4,8	-3,2
Operating profit after acquisition-related costs					25,6	28,4	88,3	100,6
Net financial income/expence					-1,2	-1,5	-6,4	-5,9
Profit before tax					24,3	26,9	81,9	94,7

SALES BY GEOGRAPHY

Vitec is a Nordic software company and our customers are mainly in Sweden, Denmark, Finland and Norway, we also have a number of customers in other parts of the world. The following table and pie chart shows the Group's revenue based on where the customer is established.

MARKET		NET SALES (MSEK)
	2016 Jan-Dec	%	2015 Jan-Dec	%
Sweden	284,7	42,2%	308,1	49,8%
Denmark	154,6	22,9%	99,8	16,1%
Finland	106,0	15,7%	64,1	10,4%
Norway	119,5	17,7%	142,1	23,0%
Rest of Europe	10,4	1,5%	4,1	0,7%
Rest of world	0,2	0,0%	0,1	0,0%
SUM	675,4	100,0%	618,4	100,0%

Significant events during the fourth quarter

DECEMBER 2: PensionDanmark chooses PORTMAN from Vitec

Vitec Aloc A/S has entered into an agreement with PensionDanmark, that PensionDanmark will use PORTMAN as their Portfolio Management system to manage PensionDanmarks investment portfolio of 194 Billion Danish Kroner. The signed deal has a revenue at approx. 8 MDKK, and a continuing annual subscription agreement.

PensionDanmark found that Vitec`s software solution is a perfect match to the demands and needs defined by a company as PensionDanmark, which gives them the possibility to handle multiple assets in one system

JULY 5: Vitec acquires Plania AS in Norway

Vitec Software Group AB (publ) has on December 5 agreed to acquire 100 % of the shares in the Norwegian software company Plania AS, specialized in software for real estate administration, facility management and property maintenance. The company is expected to report sales of 28.5 MNOK for the fiscal year of 2016, with approximately 48 % recurring revenue and

an EBITDA of 6.6 MNOK. Payment is in cash at closing. Acquisition is expected to directly result in an increase in earnings per share for Vitec. Consolidation is from December 5. The acquired company will be included in the Vitec business segment "Real Estate".

Significant events after the end of the period

JANUARI 3: Vitec moves from Small Cap to Mid Cap on Nasdaq Stockholm

Vitec Software Group AB's class B share (VIT B) has moved from the Small Cap segment to the Mid Cap segment of Nasdaq Stockholm as a result of Nasdaq's annual review of market cap values on the Nordic markets. The Vitec shares

trades in the Mid Cap segment as of January 2, 2017. The Mid Cap segment includes companies with a market capitalization between EUR 150 million and EUR 1 billion.

Risks and uncertainties

Vitec's significant risks and uncertainties are described in the Directors' Report in the Annual Report for 2015 under the heading "Risks and Uncertainties" on pages 32-33, in note 1 under "Assumptions and estimates" on page 50 and in note 20, "Financial risks and their management "on pages 63-65. No significant changes have occurred since then.

The Parent Company

Net sales amounted to SEK 98,3 million (100,4) and consisted primarily of sales to subsidiaries for services rendered. Profit after tax amounted to SEK 56,9 million (54,4). The value of shares in subsidiaries was during the period adjusted down by SEK 1,5 million and SEK 21,2 million relating to downward adjustments of contingent considerations for Fox Publish AS and Acuvitec OY. Short-term non-interest-bearing liabilities decreased correspondingly. The Parent Company is exposed to the same risks and uncertainties as the group in general, see above under section Risks and uncertainties.

Transactions with related parties

No significant related party transactions have occurred in the Group and Parent Company during the period.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SEK (thousends)	2016 Oct-Dec	2015 Oct-Dec	2016 Jan-Dec	2015 Jan-Dec
OPERATING REVENUE
Recurring revenues	140 319	125 395	518 512	480 552
License revenues	9 079	7 890	24 789	23 098
Service revenues	37 260	32 392	121 116	106 191
Other revenues	5 926	4 390	10 997	8 544
NET SALES	192 584	170 067	675 414	618 385
Capitalized development costs	25 935	17 039	82 262	65 533
Reversal of aditional purchase price	-	-	22 695	11 213
SUM	218 519	187 106	780 371	695 131
OPERATING EXPENSES
Goods for resale	-3 729	-2 088	-12 284	-6 835
Subcontractors and subscriptions	-26 593	-20 989	-82 024	-82 890
Other external expenses	-31 354	-26 498	-92 927	-84 967
Staff costs	-105 573	-88 839	-380 023	-336 133
Depreciation of tangible assets	-2 474	-2 909	-10 195	-11 233
Depreciation of intangible assets	-22 282	-20 422	-81 366	-63 392
Impairment of goodwill	-	-	-22 695	-11 213
Unrealized exchange gains and losses	40	3 853	-5 798	5 383
TOTAL COSTS	-191 965	-157 892	-687 312	-591 280
OPERATING PROFIT BEFORE ACQUSITION-RELATED COSTS	26 554	29 214	93 059	103 851
Acquisition-related costs	-995	-841	-4 754	-3 244
OPERATING PROFIT AFTER ACQUISITION-RELATED COSTS	25 559	28 373	88 305	100 607
Financial income	449	535	773	826
Financial expense	-1 690	-1 999	-7 136	-6 747
TOTAL FINANCIAL ITEMS	-1 241	-1 464	-6 363	-5 921
PROFIT BEFORE TAX	24 318	26 909	81 942	94 686
Tax	-3 302	-1 728	-15 128	-16 495
NET PROFIT	21 016	25 181	66 814	78 191
OTHER COMPREHENSIVE INCOME, ITEMS THAT MAY BE
RECLASSIFIED TO PROFIT OR LOSS
Currency translation differences	-3 548	-10 355	22 318	-19 942
TOTAL OTHER COMPREHENSIVE INCOME FOR THE PERIOD	-3 548	-10 355	22 318	-19 942
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	17 468	14 826	89 132	58 249
PROFIT FOR THE PERIOD ATTRIBUTABLE TO
-Shareholders of the Parent Company	21 016	25 181	66 814	78 191
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
ATTRIBUTABLE TO
-Shareholders of the Parent Company	17 468	14 826	89 132	58 249
EARNINGS PER SHARE
-Before dilution (SEK)	0,71	0,86	2,27	2,66
-After dilution (SEK)	0,70	0,84	2,25	2,64
Average number of shares	29 396 690	29 396 690	29 396 690	29 396 690
Number of shares after dilution	29 838 900	29 838 900	29 838 900	29 788 016

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

SEK (thousends)	2016-12-31	2015-12-31
ASSETS
FIXED ASSETS
Intangibles assets	809 612	615 327
Tangible fixed assets	34 267	29 377
Finacial assets	950	835
Deferred tax	4 185	5 952
TOTAL FIXED ASSETS	849 014	651 491
CURRENT ASSETS
Inventories	1 031	399
Receivables	165 726	159 861
Short-term investments	43	-
Cash and equivalents	80 877	60 268
TOTAL CURRENT ASSETS	247 677	220 528
TOTAL ASSETS	1 096 691	872 019
EQUITY AND LIABILITIES
Equity	334 213	271 538
Long-term liabilities, interest bearing	339 395	207 222
Long-term liabilities, non-interest bearing	157 129	102 559
Short-term liabilities, interest bearing	44 126	33 845
Short-term liabilities, non-interest bearing	221 828	256 855
TOTAL EQUITY AND LIABILITIES	1 096 691	872 019

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SEK (thousands)	2016 Oct-Dec	2015 Oct-Dec	2016 Jan-Dec	2015 Jan-Dec
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY
At beginning of period	316 745	256 713	271 538	260 130
Conversion bonds	-	-	-	-27 145
Dividend	-	-	-26 457	-19 696
Total comprehensive income for the period	17 468	14 826	89 132	58 249
AT END OF PERIOD	334 213	271 538	334 213	271 538

CONSOLIDATED STATEMENT OF CASH FLOWS

SEK (thousands)	2016 Oct-Dec	2015 Oct-Dec	2016 Jan-Dec	2015 Jan-Dec
OPERATING ACTIVITIES
Operating profit	25 559	28 373	88 305	100 607
Adjustments for items not included in cash flow
Other operating income	-	-	-22 695	-11 213
Depreciation/amortisation and impairment	24 756	23 331	114 256	85 838
Unrealized exchange gains/losses*	-40	-3 832	5 798	-5 383
	50 275	47 872	185 664	169 849
Interest received	448	535	117	826
Interest paid	-966	-1 999	-5 553	-6 747
Tax paid	-12 750	-9 148	-27 471	-14 177
CASH FLOW FROM OPERATING ACTIVITIES BEFORE
CHANGES IN WORKING CAPITAL	37 007	37 260	152 757	149 751
Changes in working capital
Change in inventories	47	-41	95	51
Change in accounts receivables*	-56 744	-66 762	2 659	-6 115
Change in operating receivables	11 836	12 966	1 265	1 333
Change in accounts payable*	1 727	1 398	3 534	-2 641
Change in operating liabilities	40 845	49 123	-1 860	-2 587
CASH FLOW FROM CURRENT OPERATIONS	34 718	33 944	158 450	139 792
INVESTMENT ACTIVITIES
Acquisition of subsidiaries, net**	-53 759	-18 183	-156 112	-85 580
Sale of subsidiaries	-		4 217
Acquisition of intangible assets and capitalized development costs	-22 677	-21 680	-83 763	-70 174
Acquisition of tangible assets	-6 280	-3 616	-9 046	-11 821
CASH FLOW FROM INVESTMENT ACTIVITIES	-82 716	-43 479	-244 704	-167 575
FINANCING ACTIVITIES
Dividend	-	-	-26 457	-19 696
Redemption convertible loan	-	-	-	-36 781
New loans	52 889	21 762	185 466	102 901
Amortisation of loans	-10 407	-9 130	-49 865	-34 478
CASH FLOW FROM FINANCIAL ACTIVITIES	42 482	12 632	109 144	11 946
CASH FLOW FOR THE PERIOD	-5 516	3 097	22 890	-15 837
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE
PERIOD	86 467	55 416	60 268	71 114
Exchange-rate differences in cash and cash equivalents	-31	1 755	-2 238	4 991
CASH AND CASH EQUIVALENTS AT END OF PERIOD
	80 920	60 268	80 920	60 268

*Change in accounts receivable and change in accounts payable are from 2016 reported separately . The adjustments for items not included in cash flow includes unrealized foreign exchange differences. Comparative figures have been restated for this, see table on next page.

** Payment for acquisition of subsidiaries in 2016 consisted of proceeds for Tietomitta OY, Futursoft OY and Plania AS. Net cash outflow amounted to SEK 141,2 million. All acquisitions related to the entire outstanding share capital and meant that control was obtained in all companies. Additional payments for the acquisition of Fox Publish AS SEK 2,9 million and Acuvitec OY SEK 11,9 million were also made. The payments did not result in any changes in share capital or control.

Payment for acquisition of subsidiaries in 2015 consisted of proceeds for Fox Publish AS, ADservice Scandinavia AB, Datamann A/S, Infoeasy AS and Nice AS. Net cash outflow amounted to SEK 80,6 million. All acquisitions related to the entire outstanding share capital and meant that control was obtained in all companies. During the period an additional payment was made for the acquisition of Aloc A/S SEK 4,9 million. The payment did not result in any changes in share capital or control.

RESTATEMENT OF COMPARATIVE FIGURES OCTOBER-DECEMBER 2015

		Adjustment	Adjustment
	Previously	Operating	Operating
	Reported	liabilities and	receivables and
	Value	cash flow	cash flow	Reported Value
SEK (thousands)	2015			2015
	Oct-Dec			Oct-Dec
Unrealized exchange gains/losses	0	-3 832		-3 832
Tax Paid	1 070	-10 218		-9 148
Cash flow from operating activities before changes in
working capital	51 310	-14 050		37 260
Change in accounts receivables	0		-66 762	-66 762
Change in operating receivables	-53 819		66 785	12 966
Change in accounts payable	0	1 398		1 398
Change in operating liabilities	36 471	12 652		49 123
Cash flow from current operations	33 921	0	23	33 944
Change in long-term receivables	23		-23	0
Cash flow from investment activities	-43 456		-23	-43 479

RESTATEMENT OF COMPARATIVE FIGURES JANUARY-DECEMBER 2015

		Adjustment	Adjustment
	Previously	Operating	Operating
	Reported	liabilities and	receivables and
	Value	cash flow	cash flow	Reported Value
SEK (thousands)	2015			2015
	Jan-Dec			Jan-Dec
Unrealized exchange gains/losses	0	-5383		-5383
Tax Paid	-14 177	0		-14 177
Cash flow from operating activities before changes in
working capital	155 134	-5 383		149 751
Change in accounts receivables	0		-6 115	-6 115
Change in operating receivables	-4 281		5 614	1 333
Change in accounts payable	0	-2 641		-2 641
Change in operating liabilities	-10 611	8 024		-2 587
Cash flow from current operations	140 293	0	-501	139 792
Change in long-term receivables	-501		501	0
Cash flow from investment activities	-168 076		501	-167 575

INCOME STATEMENT, PARENT COMPANY

SEK (thousands)	2016 Oct-Dec	2015 Oct-Dec	2016 Jan-Dec	2015 Jan-Dec
NET SALES	34 887	32 249	98 337	100 426
Operating costs	-30 104	-20 846	-101 864	-75 494
OPERATING RESULT	4 783	11 403	-3 527	24 932
RESULT FROM FINANCIAL INVESTMENTS
Income from shares in group companies	56 811	39 907	58 335	39 907
Financial income	615	-161	738	516
Financial expense	-1 757	-1 718	-6 382	-6 235
PROFIT AFTER FINANCIAL NET	60 452	49 431	49 164	59 120
Appropriations	7 781	-822	7 781	-822
PROFIT BEFORE TAX	68 233	48 609	56 945	58 298
Tax	-9	-1 737	-9	-3 869
NET PROFIT	68 224	46 872	56 936	54 429

The results of the period are consistent with the total comprehensive income.

BALANCE SHEET, PARENT COMPANY

SEK (thousands)	2016-12-31	2015-12-31
ASSETS
FIXED ASSETS
Intangible assets	3 941	3 827
Tangible assets	12 015	13 179
Financial assets	873 802	694 898
TOTAL FIXED ASSETS	889 758	711 904
CURRENT ASSETS
Receivables	82 710	43 394
Cash and equivalents	60 557	45 306
TOTAL CURRENT ASSETS	143 267	88 700
TOTAL ASSETS	1 033 025	800 604
EQUITY AND LIABILITIES
EQUITY	301 718	271 240
UNTAXED RESERVES	2 341	2 222
LONG-TERM LIABILITIES	367 706	212 001
SHORT-TERM LIABILITIES	361 260	315 141
TOTAL EQUITY AND LIABILITIES	1 033 025	800 604

Annotations

ACCOUNTING AND VALUATION PRINCIPLES AND OTHER COMMENTS

This report has been prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, IFRS, as adopted by the EU and the Swedish Annual Accounts Act. The parent company's financial statements have been prepared in accordance with the Annual Accounts Act and recommendation RFR 2 Accounting for Legal Entities. The new standards, amendments and interpretations to existing standards that have entered into force in 2016, has had no impact on the consolidated financial position or financial reports. The accounting policies and calculation methods are unchanged from the one described in the Annual Report for 2015 with the exception of the calculation of hedge investments in foreign operations.

The Group has taken out loans in foreign currencies (EUR, NOK and DKK) to hedge investments in foreign subsidiaries. The loans are valued at the exchange rate on the balance sheet date. The Group recognizes exchange rate differences directly to equity, after adjustment for tax element. Any ineffective element of the exchange rate difference is recognized directly in the income statement as a financial item.

As of July 1, 2016 the hedge accounting has been expanded to include the company's bank accounts in foreign currency. The accounts has a negative balance, and can be seen as an overdraft facility. The balance of the accounts are valued at the exchange rate on the balance sheet date, and the exchange rate difference is recognized directly to equity, after adjustment for tax element. Prior to July 1, 2016 that exchange rate difference was recognized in the operating profit. For the period July to December, SEK 2,9 million moved from operating profit to equity and other comprehensive income. If the change had occurred from the beginning of the year, SEK 7,2 million would have moved from operating profit to other comprehensive income.

The additional purchase prices for Fox Publish AS and Acuvitec OY has during the period been adjusted down by SEK 1,5 million and SEK 21,2 million. The corrections have been recognized as revenue in accordance with IFRS 3:58, and as impairment of intangible assets. The corrections have no effect on reported profit.

TAXES

Tax for the year amounted to SEK 14,6 million (22,4). Deferred tax amounted to SEK 0,6 million (-5,9). Paid tax for the year amounted to SEK 27,4 million (14,2). The difference from the previous year is partly explained by paid residual taxes for 2014, partly by newly acquired Finnish companies who pay their taxes in current year, but mainly by improved operating results between 2014 and 2015.

INVESTMENTS

Investments amounted to SEK 82,3 million in capitalized work, SEK 1,5 million in other intangible assets and SEK 9,0 million in tangible assets.

LONG-TERM DEBT

Long-term interest-bearing debt consists of bank loans SEK 339,4 million. Long-term non-interest bearing liabilities consist of deferred taxes SEK 120,7 million, pension liability SEK 7,8 million, non-current portion of additional purchase price Fox Publish SEK 2,8 million, non-current portion of additional purchace price for Futursoft SEK 23,9 million and a promissory note signed in connection with the acquisition of Nice AS SEK 2,1 million.

CONVERTIBLE DEBENTURE

Convertible debentures are included in short-term interest bearing liabilities:

Loan 1501 (long-term debt interest bearing liabilities, staff). SEK 13,8 million. Duration of the loan is January 1, 2015 - December 31, 2017. The interest rate is Stibor 180. The conversion price is SEK 31,80. Conversion may be requested 1 November to 30 November 2017. The share capital may upon conversion increase by a maximum of SEK 44 221. At full conversion the dilution of about 1.5% of the share capital and 0.7% of the votes. The convertible program was registered by the Swedish Companies Registration Office February 11, 2015.

EQUITY

Consolidated shareholders' equity as of December 31, 2016 was SEK 334,2 million.

FINANCIAL INSTRUMENTS

Classification and valuation

Financial instruments are initially recognized at their acquisition value corresponding to the instrument´s fair value plus transaction costs. A financial instrument is classified when recognized for the first time, including on the basis of the purpose for which the instrument was acquired. Vitec has financial instrument in the categories loans receivable and accounts receivable, financial liabilities valued at fair value, and financial liabilities valued at their accrued acquisition value.

Financial liabilities valued at fair value

According to IFRS 7, information must be provided about the fair value of each financial asset and financial liability, irrespective of whether they are reported in the balance sheet or not. Vitec judges that the fair value of the financial assets/liabilities is close to the reported book value.

All of the company´s financial instruments that are subject to valuation at fair value are classified at level 3. The change for the period in respect of financial instruments at level 3 refers primarily to additional purchase prices for acquisitions. Conditional purchase prices are valued at fair value base on available data, such as contractual terms, as well as relevant assessments in respect of anticipated fulfillment of conditions. When calculating fair value, an assumed interest rate of 0,9% has been used. As the difference between fair value and book value is marginal, no correction has taken place.

The following table shows the difference between fair value and booked value.

Recurring valuations at fair value, as at 31 December 2016

	Level 1	level 2	Level 3	Book value
Additional purchase price Fox Publish AS			2 710	2 740
Additional purchase price Futursoft AS			23 651	23 917

For all other financial assets and liabilities, booked value is consistent with fair value.

ACQUISITIONS AND SALES

Sale of business area Media

On July 1, all shares of Vitec Veriba AB were sold. The sale constitutes most of the Vitec Media business. Since the business area is only a small part of the group, the sale is not material enough to be reported as assets for sale in accordance with IFRS 5.

			Fair value
Booked values for assets and liabilites at date		Fair value	recognized in the
of sales	Veriba AB	adjustment	Group
Intangible fixed assets	588	-	588
Current receivables	1 507	-	1 507
Cash and cash equivalents	3 076	-	3 076
Current liabilities	-1 752	-	-1 752
Net identifiable assets and liabilities	3 419	0	3 419
Goodwill on consolidation			4 529
Total			7 948
Booked value sold net assets			7 948
Calculation of net cash flow			Fair value
Consideration received			7 293
Cash disposed			-3 076
Net Cash flow			4 217
Information about the sale			Fair value
Consideration received			7 293
Booked value sold net assets			-7 948
Income/loss from sale			-655

The Group Vitec Veriba earnings until date of sales amounted to SEK 0,2 million and is included in operating profit for business area Media.

Acquisition of Tietomitta OY

On July 5, all shares in the Finnish software company Tietomitta OY were acquired. The company´s product is an industry-specific software for the waste-management in Finland.

The company is consolidated as from the acquisition date. The goodwill is not tax-deductible and is deemed to be attributable to the expected profitability, complementary expertise as well as anticipated synergies in the form of the joint development of our products. The acquisition adds a new business area, we believe that the Group´s new composition reduces the overall industry and market-related risks. The acquisitionrelated expenses amounted on December 31 to SEK 1,7 million, and are recognized as other external cost in the consolidated statement of comprehensive income. From the acquisition date up to and including the 31 December, the revenues of the acquired company amount to SEK 18,4 Million. If consolidation had occurred at the beginning of the year, the company would have brought the Group a further approx. SEK 14,9 million in revenue and approx. SEK -1,7 Million in net profit. The following purchase price allocation in preliminary until twelve months have passed since the acquisition date. The items that may be revalued are brands, product rights, customer agreements and goodwill.

			Fair value
Preliminary purchase price allocation		Fair value	recognized in the
(SEK thousands)	Tietomitta OY	adjustment	Group
Brands	-	470	470
Product Rights	-	18 061	18 061
Customer Agreement	-	4 936	4 936
Intangible fixed assets	1 316	-	1 316
Tangible fixed assets	107	-	107
Inventories	312	-	312
Current receivables	5 672	-	5 672
Cash and cash equivalents	15 915	-	15 915
Deferred tax liabilities	-	-4 693	-4 693
Current liabilities	-5 331	-	-5 3310
Net identifiable assets and liabilities	17 991	18 774	36 765
Goodwill on consolidation			8 380
Total			45 145
The Group´s acquisition value			45 145
Calculation of net cash outflow			Fair value
Group´s acqcuisition value			-45 145
Cash acquired			15 915
Net cash outflow			-29 230

Acquisition Futursoft OY

On September 7, all shares in the Finnish software company Futursoft OY were acquired. The company has specialized software for the automotive and machinery industries.

The company is consolidated as from the acquisition date. The goodwill is not tax-deductible and is deemed to be attributable to the expected profitability, complementary expertise as well as anticipated synergies in the form of the joint development of our products. The acquisition-related expenses amounted on December 31 to SEK 2,2 million, and are recognized as other external cost in the consolidated statement of comprehensive income. From the acquisition date up to and including the 31 December, the revenues of the acquired company amount to SEK 18,8 Million. If consolidation had occurred at the beginning of the year, the company would have brought the Group a further approx. SEK 32,5 million in revenue and approx. SEK 6,9 Million in net profit. The following purchase price allocation in preliminary until twelve months have passed since the acquisition date. The items that may be revalued are brands, product rights, customer agreements and goodwill.

Since the previous report, intangible assets and goodwill have been reclassified. The corrected acquisition analysis presents a more accurate picture of the acquired company's assets. Earlier values was; brands SEK 1,9 million, product right SEK 47,2 million, customer agreements SEK 23,8 million, goodwill SEK 35,6 million and deferred taxes SEK -14,6 million. The short-term portion of debt for additional purchase price has been paid out and reduced the value with SEK 11,5 million. The short-term portion of the additional purchase price was at time of payment higher than the original estimate. The residual of SEK 0,7 million have increased goodwill and the acquisition value of the company.

			Fair value
Preliminary purchase price allocation		Fair value	recognized in the
(SEK thousands)	Futursoft OY	Group
Brands	-	41 317	41 317
Product Rights	-	21 377	21 377
Customer Agreement	-	14 277	14 277
Tangible fixed assets	1 774	-	1 774
Inventories	414	-	414
Current receivables	2 428	-	2 428
Cash and cash equivalents	13 138	-	13 138
Deferred tax liabilities	-	-15 394	-15 394
Current liabilities	-5 273	-	-5 2730
Net identifiable assets and liabilities	12 481	61 576	74 057
Goodwill on consolidation			33 064
Total			107 121
The Group´s acquisition value			107 121
Calculation of net cash outflow			Fair value
Group´s acqcuisition value			-107 121
Debt aditional purchase price			23 501
Cash acquired			13 138
Net cash outflow			-70 482

Acquisition Plania AS

On December 5, all shares in the Norweigan software company Plania AS were acquired. The company is specialized in software for real estate administration, facility management and property maintenance.

The company is consolidated as from the acquisition date. The goodwill is not tax-deductible and is deemed to be attributable to the expected profitability, complementary expertise as well as anticipated synergies in the form of the joint development of our products.. The acquisition-related expenses amounted on December 31 to SEK 1,3 million, and are recognized as other external cost in the consolidated statement of comprehensive income. From the acquisition date up to and including the 31 December, the revenues of the acquired company amount to SEK 2,2 Million. If consolidation had occurred at the beginning of the year, the company would have brought the Group a further approx. SEK 27,6 million in revenue and approx. SEK 5,0 Million in net profit. The following purchase price allocation in preliminary until twelve months have passed since the acquisition date. The items that may be revalued are brands, product rights, customer agreements and goodwill.

			Fair value
Preliminary purchase price allocation		Fair value	recognized in the
(SEK thousands)	Plania AS	adjustment	Group
Brands	-	17 865	17 865
Product Rights	-	15 822	15 822
Customer Agreement	-	6 761	6 761
Tangible fixed assets	652	-	652
Current receivables	3 313	-	3 313
Cash and cash equivalents	12 457	-	12 457
Deferred tax liabilities	-37	-9 708	-9 744
Current liabilities	-6 723	-	-6 7230
Net identifiable assets and liabilities	9 663	30 740	40 403
Goodwill on consolidation			13 577
Total			53 980
Köpeskilling (koncernens anskaffningsvärde)			53 980
The Group´s acquisition value			53 980
Calculation of net cash outflow			Fair value
Group´s acqcuisition value			-53 980
Cash acquired			12 457
Net cash outflow			-41 523

Signatures

ASSURANCE OF THE BOARD

The Board of Directors and President hereby assure that the year-end report provides a fair and true view of the company´s and the Group's operation, financial position and earnings, and describes the significant risks and uncertainties facing the company and the companies included in the Group.

Umeå, February 16 2017,

The board: Crister Stjernfelt, Kaj Sandart, Anna Valtonen, Birgitta Johansson-Hedberg and Jan Friedman.

Information

PUBLICATION

The information in this report is such a kind that Vitec Software Group AB (publ.) is legally required to disclose pursuant to the EU´s Market Abuse Regulation and the Swedish Securities Market Act. The information was released for publication on February 16, 2017 at 08:30 CET.

CONTACT

CEO Lars Stenlund, +46 70-659 49 39,

lars.stenlund@vitec.se

CFO Maria Kröger, +46 70-324 66 58,

maria.kroger@vitec.se

FINANCIAL INFORMATION

Can be ordered from:

Vitec Software Group AB (publ), Investor Relations, Tvistevägen 47 A, S-907 29 Umeå, Sweden.

Phone: +46 90-15 49 00

E-mail: ir@vitec.se

Financial information is published on www.vitecsoftware.com immediately after publication.

The annual report will be available at the company headquarters and on our website no later than on April 4 2017.

FINANCIAL CALENDAR

2017-04-25	Interim Report January-March 2017 (≈13:00 CET)
2017-04-25	Annual general meeting 2016 (≈17:30 CET)
2017-07-13	Interim Report January-June 2017 (≈08:30 CET)
2017-10-20	Interim Report January-September 2017 (≈08:30 CET)

This English version of the report is a translation of the original Swedish version; in the event of variances, the Swedish version shall take precedence over the English translation.

The auditors have not audited this report.

CORPORATE REGISTRATION

Vitec Software Group AB (publ.), Org.no. 556258-4804

Key figure definitions

In this interim report, we refer to non-IFRS measures that Vitec and other parties use in evaluating the Company's results. These measures provide management and investors with meaningful information to analyze trends in the Company's business. These non-IFRS measure is intended to supplement, not replace, the financial measures presented in accordance with IFRS. Non-IFRS measures presented on the last page of this report are defined as follows.

RETURN ON CAPITAL EMPLOYED

Operating profit as a percentage of average capital employed attributable to parent company shareholders.

RETURN ON EQUITY

Profit/loss for the period, attributable to parent company shareholders, as a percentage of average shareholders' equity, attributable to parent company shareholders.

VALUE ADDED PER EMPLOYEE

Operating income plus depreciation and staff costs relative to the average number of employees.

ADJUSTED EQUITY PER SHARE

Equity attributable to shareholders in proportion to the number of shares issued at the closing-day.

CASH FLOW FROM OPERATING ACTIVITIES PER SHARE

Cash flow from operating activities divided by the average number of shares on the market during the period.

SALES PER EMPLOYEE

Net revenue, including other operating income in relation to average number of employees.

P/E RATIO

Share price at year-end divided by earnings per share.

P/ADJUSTED EQUITY PER SHARE

The share price at the balance sheet date multiplied by the number of shares issued on the closing date in relation to the equity attributable to the parent company's shareholders.

P/S

The share price at the balance sheet date multiplied by the average number of shares in relation to net sales.

EARNINGS PER SHARE

Profit/loss for the period, attributable to parent company shareholders, divided by the average number of shares on the market attributable to parent company shareholders.

OPERATING PROFIT

Operating profit as a percentage of net sales.

SOLIDITY

Shareholders' equity, including equity attributable to non-controlling interests in relation to total assets.

DEBT RATIO

Average liabilities in relation to average shareholders' equity and non-controlling interests.

PROFIT MARGIN

Net profit after tax through the net turnover.

Graphs

Estate Agent 23%

JEK per share (SEK)

Profit per share (SEK/share)

Cash flow per share (SEK)

Net Sales (MSEK)

Vitec at a glance

INDUSTRY-SPECIFIC BUSINESS SYSTEMS

Vitec develops and supplies business-critical standardised software to satisfy industry-specific needs. Our growth is taking place through the acquisition of mature software companies in the Nordic region.

LONG-TERM CUSTOMER RELATIONS

We adopt a long-term approach, focusing on our customers' security. We create value through our supportive product offering, which facilitates development and increased profitability for our customers.

BUSINESS MODEL WITH RECURRING REVENUE

Our business model is based on a high proportion of recurring revenue. This creates the conditions to act in the long-term, as we are less sensitive to temporary downturns within individual companies.

GROWTH THROUGH ACQUISITIONS

Vitec has a pronounced acquisition-based growth strategy, with considerable focus on profitability and stable cash flows. By focusing on strong cash flows, we are creating the financial conditions for continued acquisition-driven growth.

HISTORY

Vitec was established in 1985 as a spin-off company from the University of Umeå, and since 1998 it has been a public company based on software. During our 30-year history, we have experienced continuous growth and have recorded a profit every year. Vitec is now a Nordic software Group with approx. 500 employees.

Sender. Vitec Software Group AB (publ), Tvistevägen 47 A, 907 29 UMEÅ, SWEDEN

Key figures

		2016	2015	2014	2013	2012	2011
Net sales	(TSEK)	675 414	618 385	491 956	371 631	389 200	359 598
Business Area Auto	(TSEK)	119 171	71 082	28 302	-	-	-
Business Area Energy	(TSEK)	25 872	24 114	22 672	19 849	21 327	19 286
Business Area Real Estate	(TSEK)	158 357	142 557	134 315	130 718	120 086	120 140
Business Area Finance & Insurance	(TSEK)	126 567	101 219	55 004	13 704	12 950	14 208
Business Area Health	(TSEK)	66 203	61 492	43 627	-	-	-
Business Area Media	(TSEK)	4 570	10 547	21 759	26 128	65 233	70 583
Business Area Environment	(TSEK)	18 420	-	-	-	-	-
Business Area Estate Agent	(TSEK)	155 285	207 011	185 750	181 152	168 785	135 306
Shared	(TSEK)	969	363	527	80	819	75
Growth	(%)	9%	26%	32%	-5%	8%	15%
Profit after financial items	(TSEK)	81 942	94 686	64 545	38 069	40 130	35 693
Profit after tax	(TSEK)	66 814	78 191	49 065	30 229	31 984	26 061
Profit after tax attributable to owners of the parent	(TSEK)	66 814	78 191	49 065	30 229	31 183	24 654
Profit growth attributable to owners of the parent	(%)	-15%	59%	62%	-3%	26%	75%
Profit margin	(%)	10%	13%	10%	8%	8%	7%
Operating margin	(%)	13%	16%	14%	11%	11%	11%
Total assets	(tkr)	1 096 691	872 019	772 901	387 981	429 133	327 743
Solidity	(%)	30%	31%	34%	44%	36%	40%
Equity ratio after full conversion	(%)	32%	33%	37%	48%	41%	49%
Degree of indebtedness	(times)	2,25	2,09	1,70	1,53	1,66	1,60
Return on capital employed*	(%)	14%	21%	18%	16%	20%	21%
Return on equity*	(%)	22%	29%	23%	19%	24%	25%
Sales per employee	(TSEK)	1 445	1 465	1 430	1 332	1 297	1 236
Value added per employee	(TSEK)	1 198	1212	1 164	1052	985	915
Personnel expenses per employee	(TSEK)	813	797	801	793	732	706
Average numbers of employees	(number)	467	422	344	279	300	291
Adjusted shareholders' equity per share (JEK)**	(SEK)	11,37	9,24	8,85	6,39	5,92	5,36
Earnings per share**	(SEK)	2,27	2,66	1,75	1,16	1,30	1,21
Earnings per share after dilution**	(SEK)	2,25	2,64	1,68	1,09	1,16	1,04
Paid dividends per share**	(SEK)	0,90	0,67	0,55	0,50	0,40	0,25
Cash flow per share**	(SEK)	5,20	5,09	4,40	1,97	2,25	2,17
P/E**		33,22	28,20	15,12	15,31	10,89	9,75
P/JEK**		6,64	8,12	2,99	2,77	2,33	2,08
P/S**		3,29	3,57	1,58	1,26	0,91	0,68
Calculation bases:
Results used for the calculation of earnings per share	(TSEK)	66 814	78 191	49 065	30 229	31 183	24 654
Cash flow for the calculation of cash flow per share***	(TSEK)	152 757	149 751	123 220	51 505	55 243	46 787
Average number of shares (weighted average)**	(psc)	29 396 690	29 396 690	28 003 405	26 141 635	24 604 375	21 546 315
The number of shares after dilution**	(psc)	29 838 900	29 788 016	29 431 975	28 175 425	27 338 170	24 172 025
The number of shares issued on the closing date** Number of shares after full conversion	(psc) (st)	29 396 6900	29 396 6900	29 396 6900	26 541 6350	25 741 6350	21 835 3750
Share price at end of period**	(SEK)	75,50	75,00	26,50	17,70	13,80	11,16

* Values for rolling 12 months.

** Number of shares and key figures related to shares have been recalculated due to split.

*** Cash flow from operating activities before changes in working capital has been corrected in the comparative figures as unrealized foreign exchange differences have been reclassified.

Vitec Software Group AB (publ) is a Nordic software company that develops and delivers standardised software for industry specific needs. The Group has operations in Sweden, Denmark, Finland and Norway and grows in the mature part of the software industry by consolidating vertical software segments. Our customers include facility management companies, construction and real estate companies, banks and insurance companies, utilities and energy traders, healthcare companies, car spare part dealers and newspaper companies. The Group has approx. 500 employees and had 2016 a turnover of SEK 675 million. Vitec is listed on Nasdaq Stockholm.