Vitec Software Group B — Interim / Quarterly Report 2024

Apr 18, 2024

Interim report January–March 2024

SUMMARY OF INTERIM PERIOD, JANUARY–MARCH 2024

• Net sales SEK 716 million (613), an increase of 17%
• Recurring revenues SEK 616 million (509), an increase of 21%
• EBITA SEK 220 million (185), an increase of 19%
• EBITA margin 31% (30)
• Operating profit SEK 153 million (123), an increase of 25%
• Operating margin 21% (20)
• Earnings per share before dilution SEK 2.28 (2.07)
• Cash flow from operating activities SEK 694 million (489)
• Acquisition of LDC

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

Strong cash flow and increased margins

As unfolds the market landscape that concluded last year remains the same an interim phase that has neither improved nor worsened At the same time we continue to show solid organic growth of % for our subscription-based recurring revenues adjusted for currency effects The majority of this year's price adjustments were carried out in the first quarter in accordance with our customer agreements and largely follow the general price trend in each market

The first quarter is traditionally our strongest in terms of cash flow and this year is no exception Most of our subscription-based recurring revenues are billed in advance providing us with a stable financial position and the conditions to take a long-term approach to our investment decisions Revenues for the first quarter total SEK million reflecting a % increase year over year Calculated on a rolling -month basis our subscription-based revenues grew organically by % in local currencies which is consistent with the end of last year EBITA was SEK million an increase of % and the margin was % up from % We always endeavor to increase the margins and this development is therefore particularly gratifying Continued high interest rates and increased tax expenses given our increasingly international operations are impacting our net profit thus leading to a slightly smaller increase in earnings per share compared to the EBITA

Culture and values are the glue that holds a growing Group like ours together providing the conditions for growth development and innovation In the short-term the Annual General Meeting on April and our big Management Conference held in Umeå on May – are two important opportunities for us to meet exchange experiences discuss the business and be inspired by similarities and differences The latter is a specific example of our cultural work and cohesion which are facets that we highlight when meeting new companies and that are part of our unique offering

In January we welcomed Dutch LDC to the Group This market-leading company has a platform for coaches and candidates in career and human resource management reintegration training and retraining The products support labor market mobility through training career coaching and matching candidates to available positions We continue to look for new companies to add to our growing Group Based on our criteria we are able to maintain an agnostic view on vertical or geography for example while remaining flexible in our setup to generate trust among entrepreneurs and deliver long-term value-creation for shareholders

Olle Backman CEO and President Vitec Software Group

In January Vitec acquired software company LDC which develops and delivers software for improved labor market mobility in the Netherlands

"We continue to look for new companies to add to our growing Group We remain flexible in our setup to generate trust among entrepreneurs and deliver long-term value-creation for shareholders"

Group financial information

NET SALES AND EARNINGS

January–March 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 attributable to acquisitions

Comments on sales

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

Other revenues totaled SEK million which is a decrease 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

% () 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 and amortization and impairment losses on intangible fixed assets and acquisition-related amortization had a negative effect on operating profit of SEK million compared with a positive effect 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 (-) and non-cash remeasurement to fair value of supplementary purchase considerations of SEK - million (-) The increase in net interest expenses is attributable to higher interest rates and increased borrowing in conjunction with acquisitions

SEK million net sales January–March

Earnings

EBITA was SEK million () with an EBITA margin of % () Operating profit was SEK million () with an operating margin of

	 Jan–Mar	 Jan–Mar	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		

ORGANIC GROWTH

SEK million	R March 	R March 	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 subscription-based recurring revenues

Organic growth net sales

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

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

We estimate that approximately % of this growth is attributable to currency effects For transaction-based recurring revenues where we have a greater share of sales denominated in EUR currency effects are higher at approximately %

Diagrams on Group trends

Sales by quarter EBITA and EBITA margin by quarter

Breakdown of revenue January–March

Allocation of recurring revenues 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

USA

Other

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 business units

11%

89%

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

Breakdown of sales among our 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

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 Global Goals (Sustainable Development Goals SDG) linked to each focus area

RESPONSIBLE GROWTH ENABLING PRODUCTS

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 longterm 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 longterm 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

We primarily support SDGs and

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 in diversity teamwork and a healthy work environment for increased job satisfaction and good results

We primarily support SDGs and

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

We mainly support SDG

EMPOWERED PEOPLE 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

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			%
Vitec Actor Smartbook	Municipal culture and recreation administration offices as well as other visitor facilities in Norway and Sweden	SE			%
Vitec Acute	Healthcare companies in Finland	FI			%
Vitec Agrando	Church-related administration in Norway	NO			%
Vitec ALMA	Information management within the process industry and energy companies in Finland	FI			%
Vitec Aloc	Banking and finance industry in the Nordic countries and western 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 Fastighet	Construction and property management industry in Sweden	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 emergency vehicles in Finland	FI			%
Vitec Datamann	Car dealers and auto repair shops in Denmark	DK			%
Vitec DL System	Facilities in the tourism sector in Sweden	SE			%
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 Fixit	Hair and beauty salons in Norway	NO			%
Vitec Futursoft	Automotive industry and machinery sector in Finland and Sweden	FI			%

		Registered	Acquisition	Sales 	Recurring
Business unit	Software for	office	year	MSEK	
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 Nice	Liability insurance companies in Norway and Sweden	NO			%
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 Switzerland	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 Finland	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 property management industry in the Netherlands	NL			%
Vitec Visiolink	Media companies in Europe	DK			%
Vitec WIMS	Insurance companies in Norway	NO			%

Balance sheets and cash flow

LIQUIDITY AND FINANCIAL POSITION

The Group's cash and cash equivalents at the end of the year totaled SEK million () In addition to cash and cash equivalents Vitec has an overdraft facility 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 March interest-bearing liabilities totaled SEK million () and comprised SEK million () in non-current interest-bearing liabilities and SEK million () in current interest-bearing liabilities 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 as well as convertible debentures totaling 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 that were approved at the most recent annual general meetings The maximum potential dilution from these convertible loans amounts to % of capital and % of votes

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 of March was SEK million including a non-current portion of SEK million and a current portion of SEK million

CASH FLOW AND INVESTMENTS

The Group has not used the credit facility for any investments in nor have any repayments been made to the facility during the year Amortization of bank loans amounted to SEK million amortization related to right-of-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

The fourth and final payment of the dividend for financial year was made on March when SEK million was paid

SHAREHOLDERS' EQUITY

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

As of March there are two outstanding warrant programs The maximum potential dilution from these warrant programs amounts to % of capital and % of votes

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

During the quarter 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

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 revenue

0 100 200 300 400 500 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 MSEK 4 3 1 4 ^{5 5} 5 5 ⁶ Number of acquisitions 1

ACQUISITION DURING THE PERIOD

One acquisition was completed during the period LDC I-talent Solutions BV From the acquisition date up to and including March revenues in the acquired company totaled SEK million If consolidation had occurred at the beginning of the year the company would have provided the Group with an additional approximately SEK million in sales The acquisition-related expenses are recognized in operating profit and total SEK million

The goodwill item is not tax deductible and is 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 acquisition 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 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

Acquisition of LDC I-talent Solutions BV

On January Vitec acquired all shares in the Dutch software company LDC I-talent Solutions BV

LDC develops and delivers a platform for coaches and candidates in career and human resource management reintegration training and retraining

The company had sales of EUR million during the financial year The acquisition is deemed to yield an immediate increase in profit

Payment is in cash and with a convertible with deviation from shareholders' preferential rights in accordance with the authorization from the Annual General Meeting on April The convertible matures in months and at full conversion will have a dilutive effect on capital of less than %

Consolidation will commence as of the acquisition date

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 January and February Malmkroppen expanded its ownership stake in Swedish software company Nordkap AB Nordkap provides software within Treasury Management for the property industry Vitec holds a % stake in the company after the investment

Investment in Precisely AB

On January Malmkroppen expanded its ownership stake in Swedish software company Precisely AB Precisely is a company that provides software for more efficient contract management for businesses and organizations Vitec holds a % stake in the company after the investment

Other significant events during the period

The shareholders in Vitec Software Group AB (publ) corp reg no are hereby given notice of the Annual General Meeting to be held on April at : pm at Aula Nordica Universums gränd in Umeå Sweden Entry to the Annual General Meeting is from : pm to : pm Food and beverage will be served after the Annual General Meeting

In accordance with the provisions of the company's Articles of Association the Board has decided that the shareholders shall have the opportunity to exercise their voting rights by postal ballot before the Annual General Meeting Shareholders may thus choose to attend the meeting physically by proxy or by postal voting

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

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"

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

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

As of the third quarter of a longterm share savings plan aimed at all staff has been in place If the conditions are met participants receive matching shares The value of the matching shares is recognized as share-based 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 liabilities measured at fair value

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 March SEK thousands

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

Signature

Vitec Software Group develops and provides software for purposes such as energy management and grid balancing services in the Netherlands

Umeå on April

Olle Backman CEO and President

Condensed consolidated statement of comprehensive income

SEK THOUSANDS	 Jan–Mar	 Jan–Mar	 Jan–Dec
OPERATING REVENUES			
Recurring revenues License revenues			
Service revenues			
Other revenues			
NET SALES			
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	-	-	-
Unrealized exchange-rate gains/losses (net)	-	-	-
TOTAL EXPENSES	-	-	-
EBITA			
Acquisition-related costs	-	-	-
Acquisition-related depreciation/amortization and impairment losses	-	-	-
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			
OTHER COMPREHENSIVE INCOME ITEMS THAT MAY BE RECLASSIFIED AS PROFIT/LOSS FOR THE YEAR
Restatement of net investments in foreign operations and hedge accounting of the same			-
OTHER COMPREHENSIVE INCOME FOR THE PERIOD			-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD			
PROFIT FOR THE PERIOD ATTRIBUTABLE TO
– Parent Company shareholders			
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO
– Parent Company shareholders			

Condensed consolidated statement of financial position

SEK THOUSANDS	March  	March  	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 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	 Jan–Mar	 Jan–Mar	 Jan–Dec
EQUITY ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS
Opening balance			
Correction of error attributable to previous year	-		-
Convertible debenture with stock options		-	
Debenture conversion	-	-	
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	 Jan–Mar	 Jan–Mar	 Jan–Dec
OPERATING ACTIVITIES
Operating profit			
Adjustments for non-cash items
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	-	-	-
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			

Parent company income statement condensed

SEK THOUSANDS	 Jan–Mar	 Jan–Mar	 Jan–Dec
Operating revenues			
Operating expenses	-	-	-
Unrealized exchange-rate gains/losses (net)	-	-	
OPERATING PROFIT/LOSS	-	-	
Income from participation in Group companies	-	-	
Interest income			
Interest expenses	-	-	-
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	March  	March  	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

One acquisition was completed during the period LDC I-talent Solutions BV Some items in the acquisition plan may be remeasured due to our brief ownership of the company 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 plan remains 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		-	
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	-

Allocation of revenues and date of revenue recognition

Allocation of revenues and date of revenue recognition SEK million	 Jan–Mar	 Jan–Mar	 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 (CET) on April

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

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

FINANCIAL INFORMATION

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

We can also be contacted through the following channels By post Vitec Software Group Vitec Investor Relations Tvistevägen A SE- Umeå Sweden By telephone +

Vitec's annual report is available at vitecsoftwarecom

CORPORATE REGISTRATION NUMBER

Vitec Software Group AB (publ) corp reg no -

FINANCIAL CALENDAR

Annual General Meeting	Apr   : pm
Interim report January–June 	Jul   : am
Interim report January–September 	Oct   : am
Year-end report	Feb   : am
January–December 

Olle Backman CEO + ollebackman@vitecsoftwarecom

Sara Nilsson CFO + saranilsson@vitecsoftwarecom

Patrik Fransson Investor Relations + patrikfransson@vitecsoftwarecom

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 contracted price. The contractual amount is usually billed in advance and the revenues are recognized during the contract's term.	A key indicator for the manage ment of operational activities.
Subscription-based recurring revenues	Recurring, contractual recurring revenue for all types of subscriptions and cloud services. Revenue is evenly distributed over the contract period.	Used to track the company's recur ring revenues.
Transaction-based recur ring revenues	Recurring, contractual recurring transaction-based reve nue. Revenue is strongly linked to volume and varies by volume.	Used to track the company's recur ring revenues.
Percentage of recurring revenues	Recurring revenues in relation to net sales.	A key indicator for the manage ment of operational activities.
Growth	The trend of the company's net sales in relation to corre sponding year-earlier period.	Used to monitor the company's sales trend.
Growth in recurring reve nues	Trend in recurring revenues in relation to the previous 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 12 months, including data for acquired compa nies, 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 de pendence on external direct costs
Gross margin	Gross profit in relation to net sales.	Used to monitor the company's de pendence on external direct costs
EBITA	Net profit/loss for the period before acquisition-related costs, acquisition-related amortization, net financial items and tax.	Indicates the company's net profit/ loss for the period before acquisi tion-related costs, acquisition-re lated amortization.
EBITDA	Earnings before interest, tax, depreciation and amortiza tion 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 amor tization	Amortization regarding product rights and customer agreements.	Used to disclose items affecting comparability.
EBITA margin	Operating profit before acquisition-related costs in rela tion 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 company'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 company'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 company'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 company's financial stability.
Average shareholders' equity	The average between shareholders' equity for the period attributable to Parent Company shareholders and share holders' equity for the preceding period attributable to Parent Company shareholders.	An underlying measurement on which the calculation of other key indicators is based.
Return on capital employed	Profit after net financial items plus interest expenses, 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 re lation to externally financed capital and shareholders' equity.
Return on equity	Reported profit/loss after tax in relation to average equity attributable to Parent Company shareholders.	This measurement is an indicator of the company'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/amortization 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 calculation of other key indicators is based.
AES (Adjusted equity per share)	Shareholders' equity attributable to Parent Company shareholders, in relation to the number of shares issued at the balance-sheet date.	This measurement indicates the equity per share at the bal ance-sheet date
Cash flow per share	Cash flow from operating activities before changes in working capital, in relation to the average number 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 conversion of con vertibles and warrants.	An underlying measurement on which the calculation of other key indicators is based.

IFRS KEY INDICATORS	DEFINITION	USAGE
Earnings per share	Profit after tax attributable to Parent Company sharehold ers, 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 share holders, plus interest expenses pertaining to convertible debentures, in relation to the average number of shares after dilution.	IFRS key indicators

Key indicators

		 Jan–Mar	 Jan–Mar	 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)			

* Proposed dividend per share

Vitec Software Group develops and provides software for industries including hotels and tourism in Denmark Finland Norway and Sweden

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