Vitec Software Group B — Interim / Quarterly Report 2024

Oct 17, 2024

Interim report January–September 2024

SUMMARY OF INTERIM PERIOD, JULY–SEPTEMBER 2024

• Net sales SEK 809 million (701), an increase of 15%
• Recurring revenues SEK 718 million (614), an increase of 17%
• EBITA SEK 248 million (240), an increase of 3%
• EBITA margin 31% (34)
• Operating profit SEK 171 million (158), an increase of 8%
• Operating margin 21% (22)
• Earnings per share before dilution SEK 2.85 (2.25), an increase of 27%
• Cash flow from operating activities SEK 156 million (158)
• Acquisitions of Taxiteknik and Trinergy

SUMMARY OF INTERIM PERIOD, JANUARY–SEPTEMBER 2024

• Net sales SEK 2,407 million (2,037), an increase of 18%
• Recurring revenues SEK 2,109 million (1,735), an increase of 22%
• EBITA SEK 732 million (652), an increase of 12%
• EBITA margin 30% (32)
• Operating profit SEK 520 million (444), an increase of 17%
• Operating margin 22% (22)
• Earnings per share before dilution SEK 8.32 (6.92), an increase of 20%
• Cash flow from operating activities SEK 939 million (727)

Vitec Software Group has its origin and headquarters in Umeå Sweden Forums for networking and knowledge sharing within the Group are provided here

Brief facts

customers

% proforma recurring revenues, ARR

employees

SEK million proforma net sales

countries business units

This is Vitec

Vitec is the market leader for vertical software and has its origin and headquarters in Umeå Sweden We develop and deliver standardized software for various functions in society They can be found at the heart of a variety of businesses and activities including energy insurance retail hotels churches and health care Our products enable us to help our customers achieve greater efficiency and to generate societal benefit The expertise of our employees combined with our shared corporate culture and business model enable continuous improvement and innovation Vitec is listed on the Nasdaq Stockholm Large Cap list

GROWTH – DEVELOP AND ACQUIRE

Vitec is an industry player with a longterm outlook Our growth mainly occurs through corporate acquisitions but also organically Our strong cash flow enables us to both reinvest in products and make acquisitions Continual development of our products is crucial to ensure that our offering will remain relevant in the future

RECURRING REVENUES

Our business model is based on a high percentage of recurring revenues This provides us with stable and predictable cash flows that create the prerequisites for a long-term approach It also makes the Group less sensitive to temporary declines within individual business units

VALUE-DRIVEN ORGANIZATION

Within the framework of our decentralized organization the corporate culture plays a significant role in corporate

governance and is important for our long-term success Our values brand promise and Code of conduct are the three cornerstones of our corporate culture Through an array of forums we create conditions for employees and leaders to become part of our corporate culture

SUSTAINABILITY IN THE BUSINESS MODEL

Sustainability is integral to our business model and culture To structure our work we have defined four focus areas Responsible growth Enabling products Empowered people and Reduced footprint They are specified based on where and how our business has the greatest impact on the world around us as well as areas where we believe we can make the greatest difference Read more on page as well as in the annual report

OUR VISION

Shaping a wiser and more sustainable future

OUR VALUES

Our products – our foundation Vertical Market Software

Keep it simple

Simple solutions succeed

Trust and transparency

Collaboration and responsibility create success

OUR BRAND PROMISE

To rely on – today and tomorrow

OUR BUSINESS CONCEPT

To contribute to the success of our customers by developing and providing standardized and niche businesscritical software

Comments from the CEO

We tech society

Vitec continues to grow Revenues for the third quarter amounted to SEK million an increase of % of which our recurring revenues accounted for SEK million an increase of % Both license and service revenues decreased compared to the same period last year License and service revenues are usually lower during the holiday season but this is also due to the more cautious new sales that we have experienced throughout the year In terms of earnings we report a slightly lower EBITA margin than last year % compared to % This is mostly due to the revenue mix where the share of transactionbased revenues which have lower gross margins was higher and license and service revenues lower than the corresponding period last year Profit for the period increased and earnings per share rose by % as the impact of lower interest rates starts to show Cash flow from operating activities for the quarter was in line with last year and for the entire nine-month period was really strong

During the period Vitec carried out a directed share issue which raised just over SEK million The share issue is future-oriented and strengthens our balance sheet which together with existing credit lines and our cash flow provides us with solid opportunities to leverage acquisition prospects we continue to identify in Europe and the Nordic region Just a few days after the issue we completed an acquisition of Trinergy our first Belgian company

Trinergy is a market leader in its vertical in Belgium with software for forecasting and energy consumption monitoring in buildings as well as analysis and streamlining of invoicing processes invoice automation compliance and reporting We also completed the previously announced acquisition of Taxiteknik In total we have thus acquired four companies so far this year We keep working and assessing businesses based on our well-established acquisition criteria enabling us to find successful vertical software companies

We look forward to celebrating years next year but many people still don't know who we are We have therefore for the first time introduced a groupwide communication concept named We tech The campaign shows our great breadth and the fact that in many cases we deliver not only businesscritical software but also software that is critical to society In the campaign we address customers partners future employees and society at large and at the same time create awareness and pride among those of us who work at Vitec today We tech society

Olle Backman CEO and President Vitec Software Group

"The campaign shows our great breadth and the fact that in many cases we deliver not only businesscritical software but also software that is critical to society"

In September a majority of shares was acquired in the software company Trinergy Trinergy develops and delivers mission-critical software that contributes to sustainable and efficient energy management of the property industry in Belgium

5

Group financial information

NET SALES AND EARNINGS

July–September Net sales

Net sales for the period totaled SEK million () and included recurring revenues of SEK million () license revenues of SEK million () service revenues of SEK million () and other revenues of SEK million () Recurring revenues consist of subscription-based revenue of SEK million () and transaction-based revenue of SEK million () The increase in transaction-based revenues is mainly attributable to increased volumes

Comments on sales

Net sales rose a total of % for the period and recurring revenues rose by %

Other revenues totaled SEK million which is an increase of % compared with the corresponding period last year License revenues declined % compared with the corresponding period last year Service revenues fell by % compared with the corresponding period in Recurring revenues accounted for % of net sales compared with % for the corresponding period in During the year acquired companies contributed SEK million in net sales

Earnings

EBITA was SEK million () with an EBITA margin of % () Operating profit was SEK million () with an operating margin of % () Profit after tax amounted to SEK million () Earnings per share before dilution totaled SEK ()

Comments on earnings

EBITA increased % compared with the corresponding period in IFRS related to leases had an impact of SEK million () on operating profit and SEK - million (-) on depreciation The net of capitalized development costs amortization on intangible fixed assets and acquisition-related amortization had a negative effect on operating profit of SEK million compared with a loss of SEK million the corresponding period last year Acquisition-related costs are included in operating profit and amount to SEK million (-)

Net financial items total SEK million (-) The items consist of net interest income of SEK - million (-) as well as non-cash remeasurement to fair value of supplementary purchase considerations of SEK million (-) and securities held as fixed assets of SEK million (-)

Vitec Software Group develops and provides software for customers such as hair and beauty salons in Norway

January–September Net sales

Net sales for the period totaled SEK million () and included recurring revenues of SEK million () license revenues of SEK million () service revenues of SEK million () and other revenues of SEK million () Recurring revenues consist of subscription-based revenue of SEK million () and transaction-based revenue of SEK million () The increase in transaction-based revenues is mainly attributable to increased volumes

Comments on sales

Net sales rose a total of % for the period and recurring revenues rose by %

Other revenues totaled SEK million which is an increase of % compared with the corresponding period last year License revenues declined % compared with the corresponding period last year Service revenues fell by % compared with the corresponding period in Recurring revenues accounted for % of net sales compared with % for the corresponding period in During the year acquired companies contributed SEK million in net sales

Earnings

EBITA was SEK million () with an EBITA margin of % () Operating profit was Mkr () with an operating margin of % () Profit after tax amounted to SEK million () Earnings per share before dilution totaled SEK ()

Comments on earnings

EBITA increased % compared with the corresponding period in IFRS related to leases had an impact of SEK million () on operating profit and SEK - million (-) on depreciation The net of capitalized development costs amortization on intangible fixed assets and acquisition-related amortization had a negative effect on operating profit of SEK million compared with a loss of SEK million the corresponding period last year Acquisition-related costs are included in operating profit and amount to SEK - million (-)

Net financial items total SEK million (-) The items consist of net interest income of SEK - million (-) as well as non-cash remeasurement to fair value of supplementary purchase considerations of SEK million (-) and securities held as fixed assets of SEK - million (-)

SEK million net sales January–September

	 Jul-Sep	 Jul-Sep	Change	 Jan–Sep	 Jan–Sep	Change
Net sales SEK million			%			%
Recurring share of net sales %	%	%		%	%
EBITA SEK million			%			%
EBITA margin %	%	%		%	%
Operating profit/loss SEK million			%			%
Operating margin %	%	%		%	%
Net profit/loss for the period SEK million			%			%
Earnings per share SEK )					

) The comparative figures have been recalculated in order to according to IFRS take into account issue elements in new share issue

ORGANIC GROWTH

SEK million	R Sep 	R Sep 	Growth
Reported subscription-based recurring revenues		
Effect of acquired units		
Proforma subscription-based recurring revenues			%
Reported transaction-based recurring revenues		
Effect of acquired units		
Proforma transaction-based recurring revenues			%
Reported recurring revenues		
Effect of acquired units		
Proforma recurring revenues			%
Reported net sales		
Effect of acquired units		
Proforma net sales			%

Organic growth subscriptionbased recurring revenues

Organic growth subscriptionbased recurring revenues Of which currency effects

Rolling Oct –Sep

Recurring revenues calculated on a rolling -month basis including revenues from acquired units amount to SEK million Compared with the same period last year the increase is %

We divide our recurring revenues into subscription-based recurring revenues and transaction-based recurring revenues Organic growth of our subscription-based recurring revenues is % organic growth of transaction-based recurring revenues is %

Organic growth in net sales

Net sales calculated on a rolling -month basis including sales from acquired units amount to SEK million Compared with the same period last year the increase is %

We estimate that approximately % of this growth is attributable to currency effects

Diagrams on Group trends

Breakdown of revenue January–September Allocation of recurring revenues

Sales by quarter EBITA and EBITA margin by quarter

Q –Q

Sales broken down by business unit and customer

Because we operate in a number of niche markets and countries we have good distribution of revenue in terms of both geography and area of operation Although we operate in several niche markets we still engage in essentially the same business we develop and deliver standardized software Some are complete enterprise systems while others provide support for specific aspects of our customers' operations

As we continue to acquire profitable vertical software companies we expect the distribution of risk to continue in a positive direction

VITEC WORLDWIDE

Sales by market January–September

BREAKDOWN OF SALES

Our sales are evenly spread across our business units No individual business unit accounts for more than % of consolidated sales

Breakdown of sales among our busi-

Remaining business units Largest business unit

CUSTOMERS

We have about customers The Group's ten largest software customers account for approximately % of sales The single largest software customer accounts for approximately % of sales

customers

Vitec operates in countries

Sustainability in the business model

Sustainability is part of the entire value chain from the development and use of our products to the way we run and do business This effort is a continuous journey together with our customers partners and other stakeholders

OUR FOCUS AREAS

To structure this effort and clarify its direction we have defined four focus areas They are specified based on where and how our business has the greatest impact on the world around us as well as areas where we believe we can make the greatest difference This also applies to the choice of the Sustainable Development Goals (SDGs) linked to each focus area

RESPONSIBLE GROWTH

We work continuously to improve and strengthen our business and our working methods based on trust transparency integrity and fact-finding

The common brand Vitec our business model and our focus on long-term growth provide stability and facilitate sustainable investments in our products Equally important for maintaining responsible growth is our decentralized model for how we work control follow up and manage risks in our business Our brand promise To rely on – today and tomorrow our values and our Code of Conduct provide valuable guidance on how to act ethically and sustainably We choose suppliers who act professionally and appropriately Our long-term approach to acquisitions also contributes to our social responsibility since we acquire well-managed companies whose operations and products are future-proofed when the company becomes part of the Vitec Group

In this area we primarily support SDGs and

ENABLING PRODUCTS

We develop and provide software to enable a more efficient sustainable resilient and inclusive society where safe secure and reliable operation with high demands for data ethics is crucial We help our customers realize their ambitions through close collaboration innovations and continuous investments

In this area we primarily support SDG

EMPOWERED PEOPLE

To achieve success Vitec depends on motivated and engaged employees with the knowledge and skills necessary to constantly develop the business – employees who can be proud of how their work helps to benefit society We believe in short decision paths freedom under responsibility and continuous skills development to enable each individual to reach their full potential We believe that diversity teamwork and a healthy work environment provide increased job satisfaction and good results

In this area we primarily support SDGs and

REDUCED FOOTPRINT

We are determined to minimize our adverse impact on the climate and the environment and this attitude permeates all of our decisions We achieve this by constantly improving our resource efficiency reducing our waste and making climate- and eco-friendly purchases We also replace fossil fuels with fuels from renewable energy sources and optimize our travel

In this area we primarily support SDGs and

Our business units

We conduct our operations through our independent business units Vitec develops and delivers software aimed at various functions in society They can be found at the heart of a variety of businesses and activities including

energy insurance retail hotels churches and health care Our products enable us to help our customers achieve greater efficiency and to generate societal benefit

BUSINESS UNITS

Business unit	Software for	Registered office	Acquisition year	Sales  MSEK	Recurring 
ABS Laundry Business Solutions	The global laundry and textile rental industry	NL			%
Taxiteknik	Taxi companies mainly in Sweden	SE			%
Trinergy	Property industry in Belgium	BE			%
Vitec Acute	Healthcare companies in Finland	FI			%
Vitec Agrando	Church-related administration in Norway	NO			%
Vitec ALMA	Information management within the process industry and ener gy companies in Finland	FI			%
Vitec Aloc	Banking and finance industry in the Nordic countries and west ern Europe	DK			%
Vitec Appva	Healthcare and social services sector in Sweden	SE			%
Vitec Autosystemer	Automotive transportation and machinery industry in Norway	NO			%
Vitec Avoine	Local associations national organizations and golf facilities in Finland	FI			%
Vitec Bidtheatre	Media agencies in Sweden and Norway	SE			%
Vitec Capitex Finanssystem	Banking and finance industry primarily in Sweden and with some establishment in Norway and Finland	SE			%
Vitec Cito	Pharmacy market in Denmark	DK			%
Vitec Codea	Emergency service activities and field management of emergen cy vehicles in Finland	FI			%
Vitec Datamann	Car dealers and auto repair shops in Denmark	DK			%
Vitec DocuBizz	Automotive industry in northern Europe and the US	DK			%
Vitec Energy	Electricity traders and owners of electricity and district heating grids in about  different countries	SE			%
Vitec Enova	Energy management and grid balancing services in the Netherlands	NL			%
Vitec Fastighet	Property management industry in Sweden	SE			%
Vitec Fixit	Hair and beauty salons in Norway	NO			%
Vitec Forsikring	Insurance companies in Norway and Sweden	NO			%

		Registered	Acquisition	Sales 	Recurring
Business unit	Software for	office	year	MSEK	
Vitec Futursoft	Automotive industry and machinery sector in Finland and Sweden	FI			%
Vitec HK data	Health and welfare sector in Norway	NO			%
Vitec Hotelinx	Hotels and tourism in Finland	FI			%
Vitec Katrina	Church-related administration in Finland	FI			%
Vitec LDC	Career and personal development training and retraining in the Netherlands	NL			%
Vitec Megler	Real estate agents in Norway	NO			%
Vitec Memorix	Archives digital heritage and collections in the Benelux region	NL			%
Vitec MV	Education sector in Denmark Norway and Sweden	DK			%
Vitec Mäklarsystem	Real estate agents in Sweden	SE			%
Vitec Neagen	Healthcare sector in Finland	FI			%
Vitec Nordman	Food and grocery retail industry in Sweden	SE			%
Vitec Plania	Property and facility management in Norway	NO			%
Vitec Raisoft	Healthcare and social services company in Finland and Switzer land	FI			%
Vitec Samfundssystem	Administrative services for churches and preschools in Sweden	SE			%
Vitec Scanrate	Bond market in Denmark	DK			%
Vitec Tietomitta	Private and municipal waste-and-resource processing in Fin land	FI			%
Vitec Travelize	Travel agencies mainly in Denmark Norway and Sweden	SE			%
Vitec Unikum	Retail trade and manufacturing industry in Sweden	SE			%
Vitec Vabi	Sustainable energy management for the real estate and proper ty management industry in the Netherlands	NL			%
Vitec Visiolink	Media companies in Europe	DK			%
Vitec Visitor Systems	Municipal culture and recreation administration offices as well as visitorfacilities in Norway and Sweden	SE			%

Vitec Actor Smartbook is now called Vitec Visitor Systems

Balance sheets and cash flow

LIQUIDITY AND FINANCIAL POSITION

The Group's cash and cash equivalents at the end of the period totaled SEK million () In addition to cash and cash equivalents Vitec has overdraft facilities of SEK million and SEK million in unutilized portions of the credit facility which amount to a total of SEK million The terms and conditions of the company's credit agreement contain restrictions known as covenants The Group has fulfilled the terms and conditions in their entirety during the period

At September interestbearing liabilities totaled SEK million () Non-current interest-bearing liabilities comprised bank loans of SEK million as well as convertible debentures totaling SEK million Current interest-bearing liabilities comprised bank loans of SEK million convertible debentures totaling SEK million as well as other interest-bearing liabilities of SEK million Interest-bearing net debt amounts to SEK million ()

The convertible loans consist in part of convertible debentures subscribed for in conjunction with acquisitions and in part of employee convertibles The maximum potential dilution from these convertible loans amounts to % of capital and % of votes

During the year two convertible loans were converted which reduced financial liabilities by SEK million

Liabilities relating to right-of-use assets in the form of leases for premises are included in other non-current liabilities of SEK million and in other current liabilities of SEK million

The total supplementary contingent consideration as well as the commitment to acquire shares amounted as of September to SEK million including a non-current portion of SEK million and a current portion of SEK million

CASH FLOW AND INVESTMENTS

During the year the Group utilized the credit facility once for a sum of SEK million in connection with an acquisition A repayment was also made to the facility during the year The repayment amounted to SEK million Amortization of bank loans amounted to SEK million amortization related to right-to-use assets totaled SEK million

Cash flow from operating activities was SEK million () Investments totaled SEK million in capitalized work SEK million in other intangible fixed assets and SEK million in property plant and equipment Investments in right-of-use assets not affecting cash flow totaled SEK million As a result of acquisitions SEK million was invested in product rights brands customer agreements and goodwill

During the third quarter a new share issue was carried out in which the Group received SEK million after issue costs

The fourth and final payment of the dividend for financial year was made on March when SEK million was paid Payments relating to the financial year were made on June and September in the amounts of SEK million and SEK million respectively

SHAREHOLDERS' EQUITY

Equity attributable to Vitec's shareholders totaled SEK million () The equity/assets ratio is % () On April the Annual General Meeting resolved to pay a dividend of SEK per share totaling a maximum of SEK million The dividend will be divided up and paid on four payment dates June September December and March

During the year two convertible loans were converted and a warrant program expired This has resulted in the number of Class B shares has increased by

As of September there is one outstanding warrant program The maximum potential dilution from this warrant program amounts to % of capital and % of votes

There are also two long-term share savings plans ESSP and ESSP which are offered to all employees Provided that the employee has made a personal investment in shares in the company (savings shares) the employee is allocated matching share rights The cost of the matching share rights during the year amounts to SEK million recognized as a personnel expense and in equity

During the year class B shares were also repurchased from the market These shares will be used as matching shares The purchase amount of SEK million was recognized in shareholders' equity

At September the total number of repurchased shares amounted to

TAXES

Current tax for the year amounted to SEK - million (-) Deferred tax totaled SEK - million (-)

Profit before tax is SEK million () Non-deductible expenses and non-taxable revenues amount to SEK million () which results in a taxable profit totaling SEK million ()

Tax expense for the year corresponds to an average tax rate of % ()

Growth by acquisition

Acquired annual sales

ACQUISITIONS IN

To date in four acquisitions have been completed LDC I-Talent Solutions BV Bidtheatre AB Taxiteknik Nordic AB and the Trinergy group From the acquisition date up to and including September revenues in the acquired companies totaled SEK million in sales and SEK million in EBITA If consolidation had occurred at the beginning of the year the companies would have provided the Group with an additional approximately SEK million in sales and SEK million in EBITA The acquisition-related expenses are recognized in operating profit and total SEK million The operating profit also includes SEK million in acquisition-related costs related to acquisitions from previous years

The goodwill items are deemed to be attributable to anticipated profitability and complementary expertise requirements as well as anticipated synergy effects in the form of the joint development of our products

The acquisitions added SEK million in product rights SEK million in brands SEK million in customer agreements and SEK million in goodwill Expensed portions of contingent considerations as well as the commitment to acquire shares amount in total to a discounted value of SEK million and are subject to gross margin improvements and EBIT improvements over the next several years Contingent considerations are valued at discounted value of maximum outcome

ACQUISITIONS DURING THE PERIOD Acquisition Taxiteknik Nordic AB

On July % of shares were acquired in Swedish software company Taxiteknik Nordic AB with an agreement to purchase the remaining shares in and

Software company Taxiteknik develops and delivers a complete business system for taxi companies with functionality for traffic management a driver app and a booking app The company had sales of SEK million during the financial year The acquisition is deemed to yield an immediate increase in earnings per share Payment was in cash

Acquisition Trinergy

On September % of shares were acquired in Belgian software group Trinergy with an agreement to purchase the remaining shares during -

Software company Trinergy develops and delivers mission-critical software that contributes to sustainable and efficient energy management of the property industry in Belgium The group reported sales of EUR million in the financial year The acquisition is deemed to yield an immediate increase in earnings per share Payment was in cash

INVESTMENTS: CO-OWNERSHIP

Our subsidiary Malmkroppen AB aims to invest in Nordic software companies that are in an earlier phase than the software companies that are usually acquired

Investment in Nordkap AB

On July Malmkroppen expanded its ownership stake in Swedish software company Nordkap AB Nordkap offers Treasury Management software for real estate companies Vitec holds an % stake in the company after the investment

Investment in Pinpointest AB

On July Malmkroppen expanded its ownership stake in Swedish software company Pinpointest AB Pinpoint offers an open independent and free platform that compiles estimates prior to financial statements and interim reports from a large number of investors and offers broad market expectations for listed companies Vitec holds a % stake in the company after the investment

Investment in Indico Technologies AB

On July Malmkroppen expanded its ownership stake in Swedish software company Indico Technologies AB Indico delivers forecasting tools that can interpret large amounts of data for businesses where forecast accuracy has a direct impact on margins and profits Vitec holds a % stake in the company after the investment

Investment in Noor Jobs AB

On August Malmkroppen made an investment in Swedish software company Noor Jobs AB Noor provides software for companies that work with keyword optimization Noor also has a platform for matching companies and jobseekers Vitec holds a % stake in the company after the investment

Other significant events during the quarter

NEW SHARE ISSUE

Based on the issue authorization granted at the Annual General Meeting on April the Board of Directors of Vitec Software Group AB (publ) resolved to carry out a directed new share issue of class B shares at a price of SEK per share The company

raised SEK before transaction costs

The share issue entails an increase in the number of shares in Vitec from to shares including class A shares and class B shares The

Company's share capital will increase from SEK to SEK The share issue entails a dilutive effect of about percent and percent in relation to the total number of outstanding shares and votes respectively after the share issue

Parent Company

Net sales totaled SEK million () and essentially comprised invoicing to subsidiaries for services rendered Profit after tax was SEK - million (-) Parent Company earnings were charged with unrealized foreign-exchange losses totaling SEK - million (-)

The Parent Company is generally exposed to the same risks and uncertainties as the Group refer to the above section Risks and uncertainties

Risks and uncertainties

Material risks and uncertainties are described in the administration report of the Annual Report under "Risks and uncertainties" on pages – in Note under the section "Critical estimates and judgements" on pages – and in Note "Financial risks and capital risk management" on pages – No material changes have occurred since then

Related-party transactions

No significant transactions with related parties occurred in the Group or Parent Company during the period

August saw the completion of the acquisition of a majority stake in the software company Taxiteknik The company develops and delivers a complete business system for taxi companies in Sweden

Accounting and measurement policies

This interim report has been prepared in accordance with IAS Interim Financial Reporting The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU and the Swedish Annual Accounts Act The Parent Company's accounts were prepared in accordance with the Annual Accounts Act and recommendation RFR Accounting for Legal Entities No new or amended standards entered into force as of that are expected to affect the Group's accounts

Vitec Software Group continues to apply the same accounting principles and valuation methods as described in the latest Annual Report

Disclosures in accordance with IAS A appear in the financial statements and related notes as well as in other parts of the interim report

OPERATING SEGMENTS

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker of the Company In the Vitec Group the CEO and President has been identified as chief executive decision-maker who evaluates the Group's financial position and performance and makes decisions on resource allocation The operating segments form the operational structure for internal governance follow-ups and reporting The CEO analyzes and monitors the sales

and earnings of the operation based on the total consolidated operations The assessment is thus that the Group's operations consist of one segment

INCENTIVE PROGRAM

There is an ongoing convertible program aimed at all personnel in the form of convertible debentures The shares were issued on market terms Consequently there are no benefits that can be recognized as share-based remuneration

Warrant incentive programs are also underway in the form of warrants aimed at around people The shares were issued on market terms The fair value of options granted is calculated using a modified version of the Black-Scholes valuation model The value of the option premiums is recognized as share-based remuneration

Two long-term share savings plans aimed at all staff are in place If the conditions are met participants receive matching shares The value of the matching shares is recognized as sharebased remuneration

FINANCIAL INSTRUMENTS

Classification and measurement Financial instruments are recognized initially at cost corresponding to the instrument's fair value plus transaction costs A financial instrument is classified at initial recognition based on among other factors the purpose for which

the instrument was acquired Vitec has financial instruments under the categories loans and accounts receivable financial assets at fair value financial liabilities at fair value and financial liabilities at amortized cost

Financial assets and liabilities measured at fair value in the profit and loss

In accordance with IFRS the fair value of each financial asset and financial liability must be disclosed regardless of whether they are recognized in the balance sheet Vitec deems the fair value of the financial assets/liabilities to be close to the recognized carrying amount

All of the company's financial instruments that are subject to measurement at fair value are classified as level and pertain to securities held as fixed assets as well as contingent considerations in conjunction with acquisitions

Securities held as fixed assets are measured at estimated fair value any adjustments are made through profit or loss

Significant amounts of supplementary contingent considerations are measured at estimated fair value any adjustments are made through profit or loss

Recurring measurements at fair value at September SEK thousands

	Level 	Level 	Level 	Book value
Securities held as fixed assets				
Total assets				
Supplementary contingent considerations as well as commitment to acquire shares due within  year				
Supplementary contingent considerations as well as commitment to acquire shares due in more than  year but within  years				
Supplementary contingent considerations as well as commitment to acquire shares due in more than  year but within  years				
Total liabilities				

Signature

The interim report for Vitec Software Group (publ) has been issued after authorization by the board

Umeå October

Olle Backman CEO and President

Review report

INTRODUCTION

We have reviewed the interim report for Vitec Software Group (publ) corp reg no - for the period January – September The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS and the Annual Accounts Act Our responsibility is to express a conclusion on this interim report based on our review

SCOPE OF REVIEW

We conducted our review in accordance with the International Standard on Review Engagements ISRE Review of Interim Financial Information Performed by the Independent Auditor of the Entity A review consists of making inquiries primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit Therefore the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit

CONCLUSION

Based on our review nothing has come to our attention that causes us to believe that the interim report is not in all material respects prepared for the Group in accordance with IAS and the Annual Accounts Act and for the Parent Company in accordance with the Annual Accounts Act

Malmö October

Deloitte AB Richard Peters Authorized Public Accountant

Consolidated statement of profit/loss

SEK THOUSANDS	 Jul-Sep	 Jul-Sep	 Jan–Sep	 Jan–Sep	 Jan–Dec
OPERATING REVENUES
Recurring revenues					
License revenues					
Service revenues					
Other revenues					
NET SALES					
Reversal of supplementary purchase consideration		-		-	-
TOTAL REVENUES					
Capitalized development costs					
OPERATING EXPENSES
Purchase of goods and services	-	-	-	-	-
Other external expenses	-	-	-	-	-
Personnel expenses	-	-	-	-	-
Depreciation of property plant and equipment	-	-	-	-	-
Amortization of intangible fixed assets	-	-	-	-	-
Impairment of intangible assets	-	-	-	-	-
Unrealized exchange-rate gains/losses (net)			-	-	-
TOTAL EXPENSES	-	-	-	-	-
EBITA					
Acquisition-related costs	-	-	-	-	-
Acquisition-related amortization	-	-	-	-	-
OPERATING PROFIT/LOSS					
Financial income					
Financial expenses	-	-	-	-	-
Other financial income and expenses	-	-	-	-	-
TOTAL FINANCIAL ITEMS	-	-	-	-	-
PROFIT AFTER FINANCIAL ITEMS					
Tax	-	-	-	-	-
NET PROFIT FOR THE PERIOD					
Profit for the period attributable to
Parent Company shareholders					
EARNINGS PER SHARE (SEK)
Earnings per share before dilution (SEK) )					
Earnings per share after dilution (SEK) )					

) The comparative figures have been recalculated in order to according to IFRS take into account issue elements in new share issue

Consolidated statement of comprehensive income

	 Jul-Sep	 Jul-Sep	 Jan–Sep	 Jan–Sep	 Jan–Dec
PROFIT FOR THE YEAR					
Other comprehensive income
Items that may be restated in profit or loss
Restatement of net investments in foreign operations	-	-			-
Net investment hedges for foreign operations			-	-	
Deferred tax on net investment hedges for foreign operations	-	-			-
Total items that may be restated in profit or loss	-	-			-
TOTAL OTHER COMPREHENSIVE INCOME/LOSS	-	-			-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		-			
Total comprehensive income attributable to
– Parent Company shareholders		-			

Condensed consolidated statement of financial position

SEK THOUSANDS	September  	September  	December  
ASSETS
FIXED ASSETS
Goodwill			
Other intangible fixed assets			
Tangible property plant and equipment			
Financial fixed assets			
Deferred tax assets			
TOTAL FIXED ASSETS			
CURRENT ASSETS
Inventories			
Current receivables			
Cash and cash equivalents			
TOTAL CURRENT ASSETS			
TOTAL ASSETS			
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity attributable to Parent Company shareholders			
Non-current portion of interest-bearing liabilities			
Deferred tax liabilities			
Other non-current liabilities			
TOTAL NON-CURRENT LIABILITIES			
Accounts payable			
Current portion of interest-bearing liabilities			
Other current liabilities			
Accrued expenses			
Prepaid recurring revenues			
TOTAL CURRENT LIABILITIES			
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES			

Condensed consolidated statement of changes in equity

SEK THOUSANDS	 Jul-Sep	 Jul-Sep	 Jan–Sep	 Jan–Sep	 Jan–Dec
EQUITY ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS
Opening balance					
Correction of error attributable to previous year	-	-	-		-
Convertible debenture with stock options	-				
Debenture conversion					
New share issue		-		-	-
Issuing costs	-	-	-	-	-
Paid option premiums	-	-	-	-	
Long-term incentive program					
Repurchase of treasury shares	-	-	-	-	-
Reserved dividend			-	-	-
Paid dividend	-	-	-	-	-
Total comprehensive income		-			
CLOSING BALANCE					

Condensed consolidated statement of cash flow

SEK THOUSANDS	 Jul-Sep	 Jul-Sep	 Jan–Sep	 Jan–Sep	 Jan–Dec
OPERATING ACTIVITIES
Operating profit					
Adjustments for non-cash items
Other operating revenues	-	-	-	-	-
Depreciation amortization and impairment					
Unrealized foreign exchange gains/losses	-	-			
					
Interest received					
Interest paid	-	-	-	-	-
Income tax paid	-	-	-	-	-
CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN					
WORKING CAPITAL
Changes in working capital
Increase/decrease in inventories	-	-		-	-
Increase/decrease in accounts receivable		-			-
Increase/decrease in other operating receivables			-	-	
Increase/decrease in accounts payable	-			-	-
Increase/decrease in other operating liabilities	-	-		-	-
CASH FLOW FROM OPERATING ACTIVITIES					
INVESTING ACTIVITIES
Acquisition of shares and participations	-	-	-	-	-
Acquisition of subsidiaries (net impact on liquidity)	-	-	-	-	-
Supplementary purchase considerations paid	-	-	-	-	-
Purchase of intangible fixed assets and capitalized development costs	-	-	-	-	-
Purchase of property plant and equipment	-	-	-	-	-
CASH FLOW FROM INVESTING ACTIVITIES	-	-	-	-	-
FINANCING ACTIVITIES
Dividends to Parent Company shareholders	-	-	-	-	-
Borrowings					
Repayment of loans	-	-	-	-	-
Repayment of lease liabilities	-	-	-	-	-
New share issue		-		-	-
Issuing costs	-	-	-	-	-
Acquisition of treasury shares	-		-		-
Paid option premiums	-	-	-	-	
CASH FLOW FROM FINANCING ACTIVITIES					
CASH FLOW FOR THE PERIOD				-	-
OPENING CASH AND CASH EQUIVALENTS INCLUDING CURRENT INVESTMENTS					
Exchange-rate differences in cash and cash equivalents		-	-	-	
CASH AND CASH EQUIVALENTS INCLUDING CURRENT INVESTMENTS AT THE END OF THE PERIOD					

Condensed income statement Parent company

SEK THOUSANDS	 Jul-Sep	 Jul-Sep	 Jan–Sep	 Jan–Sep	 Jan–Dec
Operating revenues					
Operating expenses	-	-	-	-	-
Unrealized exchange-rate gains/losses (net)			-	-	
OPERATING PROFIT/LOSS			-	-	
Income from participation in Group companies	-	-		-	
Interest income and similar profit items					
Interest expenses and similar loss items	-	-	-	-	-
PROFIT AFTER FINANCIAL ITEMS	-		-	-	
Appropriations	-	-	-	-	
PROFIT/LOSS BEFORE TAX	-		-	-	
Tax		-			-
NET PROFIT FOR THE PERIOD	-		-	-	

Profit/Loss for the period corresponds to total comprehensive income

Condensed balance sheet Parent company

SEK THOUSANDS	September  	September  	December  
ASSETS
FIXED ASSETS
Intangible fixed assets			
Tangible property plant and equipment			
Financial fixed assets			
TOTAL FIXED ASSETS			
CURRENT ASSETS
Current receivables			
Cash and cash equivalents			-
TOTAL CURRENT ASSETS			
TOTAL ASSETS			
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity			
Untaxed reserves			
Other provisions			
Non-current liabilities			
Current liabilities			
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES			

Acquired assets and liabilities

During the year four acquisitions have been completed LDC I-Talent Solutions BV Bidtheatre AB Taxiteknik Nordic AB and the Trinergy group

Some items in the acquisition plan may be remeasured due to our brief ownership of the companies This applies to all assets and liabilities in the acquisition balances but mainly brands product rights customer agreements and goodwill For this reason the acquisition plans remain preliminary until months after the acquisition date

Acquired assets and liabilities acquisitions for the year SEK thousands	Book value	Fair value adjustment	Fair value recognized in the Group
Goodwill	-		
Intangible fixed assets			
Tangible property plant and equipment		-	
Financial fixed assets		-	
Inventories		-	
Current receivables		-	
Cash and cash equivalents		-	
Deferred tax liabilities	-	-	-
Accounts payable	-	-	-
Other current liabilities	-	-	-
Total			

Effect of acquisitions on cash flow SEK thousands
Group's purchase costs	-
Expensed portion of purchase considerations	
Convertible debentures	
Acquired cash and cash equivalents	
Net cash outflow	-

Acquired assets and liabilities revaluations of previous years' acquisitions within months

Revaluation acquisition analyses SEK thousands	Initial valuation	Revaluation	Final valu ation
Goodwill			
Intangible assets			
Deferred tax liabilities	-		-
Other net assets			
Total			

Effect of revaluation on cash flow for the year SEK thousands

Cash flow for the year	-
Acquired cash and cash equivalents	-
Convertible debentures	-
Expensed portion of purchase considerations	-
Group's purchase costs	-

Allocation of revenues and date of revenue recognition

Allocation of revenues and date of revenue recognition SEK million	 Jul-Sep	 Jul-Sep	 Jan–Sep	 Jan–Sep	 Jan–Dec
Subscription-based revenues					
Transaction-based revenues					
Other revenues					
Net sales					
Date of revenue recognition
Services transferred to customers over time flat distribution					
Services transferred to customers over time in pace with use					
Services transferred to customers at a given time					
Net sales					

Shareholder information

PUBLICATION

This information is such information that Vitec Software Group AB (publ) is required to disclose pursuant to the EU Market Abuse Regulation The information was submitted for publication through the agency of the contact person set out below at : am (CEST) on October

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

FINANCIAL INFORMATION

Our website vitecsoftwarecom is our primary channel for IR information where we publish financial information immediately upon release

You can also reach us by Post Vitec Software Group Investor Relations Tvistevägen A SE- Umeå Sweden Telephone +

Vitec's annual report is available at vitecsoftwarecom

CORPORATE REGISTRATION NUMBER

Vitec Software Group AB (publ) corp reg no -

Olle Backman CEO + ollebackman@vitecsoftwarecom

Peter Lidström CFO + peterlidstrom@vitecsoftwarecom

Patrik Fransson Investor Relations + patrikfransson@vitecsoftwarecom

FINANCIAL CALENDAR

Year-end report January–December 	Feb   : am (CET)
Interim report January–March 	Apr   : am (CEST)
Annual General Meeting	Apr   : pm (CEST)
Interim report January–June 	Jul   : am (CEST)
Interim report January–September 	Oct   : am (CEST)
Year-end report January–December 	Feb   : am (CET)

Definitions of key indicators

This interim report refers to several financial measurements that are not defined under IFRS known as alternative performance measures in accordance with ESMA's is called alternative These measurements provide senior management and investors with significant information for analyzing trends in the company's business operations Alternative performance measures are not always comparable with measurements used by other companies They are

intended to complement not replace financial measurements presented in accordance with IFRS The key indicators presented on the last page of this report are defined as follows

NON-IFRS KEY INDICATORS	DEFINITION	USAGE
Recurring revenues	Recurring contractual revenues with no direct relationship between our work efforts and the con tracted price The contractual amount is usually billed in advance and the revenues are recognized during the contract's term	A key indicator for the management of opera tional activities
Subscription-based recurring revenues	Recurring contractual recurring revenue for all types of subscriptions and cloud services Reve nue is evenly distributed over the contract period	Used to track the company's recurring reve nues
Transaction-based recurring revenues	Recurring contractual recurring transaction-based revenue Revenue is strongly linked to volume and varies by volume	Used to track the company's recurring reve nues
Percentage of recurring revenues	Recurring revenues in relation to net sales	A key indicator for the management of opera tional activities
Growth	The trend of the company's net sales in relation to corresponding year-earlier period	Used to monitor the company's sales trend
Growth in recurring revenues	Trend in recurring revenues in relation to the previ ous corresponding year	Used to monitor the company's sales trend
Organic growth in recurring revenues	Development of the company's recurring revenue over the last  months including data for acquired companies in relation to corresponding year-earlier period	Used to monitor the company's sales trend
Proforma net sales rolling  months	Net sales the past four quarters with addition of sales from acquired units for the time prior to the acquisition date	Used to monitor the company's sales trend
ARR Proforma recurring revenues rolling 	ARR Annual Recurring Revenues Recurring revenues the past four quarters with addition of recurring revenues from acquired units for the time prior to the acquisition date	Used to monitor the company's sales trend
Gross profit	The company's sales less the cost of goods purchased for resale and subcontractors and subscriptions	Used to monitor the company's dependence on external direct costs
Gross margin	Gross profit in relation to net sales	Used to monitor the company's dependence on external direct costs
EBITA	Net profit/loss for the period before acquisition-re lated costs acquisition-related amortization net financial items and tax	Indicates the company's net profit/loss for the period before acquisition-related costs acqui sition-related amortization
EBITDA	Earnings before interest tax depreciation and amortization for the period	Indicates the company's operating profit/loss before depreciation/amortization
Acquisition-related costs	Costs such as broker fees legal fees and stamp tax (tax on single property purchases)	Used to disclose items affecting comparability
Acquisition-related amortization	Amortization regarding product rights and custom er agreements	Used to disclose items affecting comparability
EBITA margin	Operating profit before acquisition-related costs in relation to net sales	Used to monitor the company's earnings trend
Operating margin	Operating profit in relation to net sales	Used to monitor the company's earnings trend

NON-IFRS KEY INDICATORS	DEFINITION	USAGE
Profit margin	Profit after tax for the period in relation to net sales	Used to monitor the company's earnings trend
Equity/assets ratio	Shareholders' equity including equity attributable to non-controlling interests as a percentage of total assets	This measurement is an indicator of the compa ny's financial stability
Equity/assets ratio after full conversion	Shareholders' equity and convertible debentures as a percentage of total assets	This measurement is an indicator of the compa ny's financial stability
Interest-bearing net debt	Non-current interest-bearing liabilities and the current portion of interest-bearing liabilities less cash and cash equivalents	This measurement is an indicator of the compa ny's financial stability
Debt/equity ratio	Average debt in relation to average shareholders' equity and non-controlling interests	This measurement is an indicator of the compa ny's financial stability
Average shareholders' equity	The average between shareholders' equity for the period attributable to Parent Company sharehold ers and shareholders' equity for the preceding pe riod attributable to Parent Company shareholders	An underlying measurement on which the cal culation of other key indicators is based
Return on capital employed	Profit after net financial items plus interest expens es as a percentage of average capital employed Capital employed is defined as total assets less interest-free liabilities and deferred tax	This measurement is an indicator of the company's profitability in relation to externally financed capital and shareholders' equity
Return on equity	Reported profit/loss after tax in relation to average equity attributable to Parent Company sharehold ers	This measurement is an indicator of the com pany's profitability and gauges the return on shareholders' equity
Sales per employee	Net sales in relation to the average number of employees	This metric is used to assess the company's efficiency
Added value per employee	Operating profit/loss plus depreciation/amortiza tion and personnel expenses in relation to average number of employees	This metric is used to assess the company's efficiency
Personnel expenses per employee	Personnel expenses in relation to average number of employees	A key indicator used to measure operational efficiency
Average no of employees	The average number of employees in the Group during the period	An underlying measurement on which the cal culation of other key indicators is based
AES (Adjusted equity per share)	Shareholders' equity attributable to Parent Com pany shareholders in relation to the number of shares issued at the balance-sheet date	This measurement indicates the equity per share at the balance-sheet date
Cash flow per share	Cash flow from operating activities before changes in working capital in relation to the average num ber of shares	Used to monitor the company's trend in cash flow per share
Number of shares after dilution	Average number of shares during the period plus the number of shares added following full conver sion of convertibles and warrants	An underlying measurement on which the cal culation of other key indicators is based

IFRS KEY INDICATORS	DEFINITION	USAGE
Earnings per share	Profit after tax attributable to Parent Company shareholders in relation to the average number of shares during the period	IFRS key indicators
Earnings per share after dilution	Profit after tax attributable to Parent Company shareholders plus interest expenses pertaining to convertible debentures in relation to the average number of shares after dilution with the exception of when earnings per share after dilution exceeds earnings per share	IFRS key indicators

Key indicators

		 Jan–Sep	 Jan–Sep	 Jan–Dec
Net sales	SEK s			
Recurring revenues	SEK s			
Recurring share of net sales	(%)	%	%	%
Growth net sales	(%)	%	%	%
EBITA	SEK s			
EBITA margin	(%)	%	%	%
Growth EBITA	(%)	%	%	%
Operating profit/loss (EBIT)	SEK s			
Operating margin	(%)	%	%	%
Profit after financial items	SEK s			
Profit after tax	SEK s			
Profit margin	(%)	%	%	%
Balance-sheet total	SEK s			
Equity/assets ratio	(%)	%	%	%
Equity/assets ratio after full conversion	(%)	%	%	%
Interest-bearing net debt	SEK s			
Debt/equity ratio	(multiple)			
Return on capital employed	(%)	%	%	%
Return on equity	(%)	%	%	%
Sales per employee	SEK s			
Added value per employee	SEK s			
Personnel expenses per employee	SEK s			
Average no of employees	(persons)			
Adjusted equity per share (AES)	(SEK)			
Earnings per share )	(SEK)			
Earnings per share after dilution )	(SEK)			
Resolved dividend per share	(SEK)			
Cash flow per share	(SEK)			
Basis of computation
Earnings from calculation of earnings per share	SEK s			
Cash flow from calculation of cash flow per share	SEK s			
Weighted average number of shares (weighted average) )	(thousands)			
Number of shares after dilution )	(thousands)			
Number of shares issued at balance-sheet date	(thousands)			
Share price at close of the respective period	(SEK)			
) The comparative figures have been recalculated in order to according to IFRS take into account issue ele ments in new share issue
The previously reported key indicators are reported below
Earnings per share	(SEK)			
Earnings per share after dilution	(SEK)			
Weighted average number of shares (weighted average)	(thousands)	 	 	 
Number of shares after dilution	(thousands)	 	 	 

Cover Vitec Software Group develops and provides software for clients such as the processing industry and energy companies in Finland

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