I.A.R. Systems Group AB (publ) Interim Report January – March 2024

Another quarter surpasses “the rule of 40”: 14% growth and an operating margin of 27%

First quarter January – March 2024

• Net sales were SEK 119.7m (107.7), with growth of 11.2% and 14.9% in local currency.

• EBITDA of SEK 46.9m (25.3), corresponding to an EBITDA margin of 39.2% (23.5).

• Adjusted EBITDA of SEK 49.0m (27.0), corresponding to an adjusted EBITDA margin of 40.9% (25.1).

• Operating profit of SEK 32.1m (11.4), corresponding to an operating margin of 26.8% (10.6).

• Adjusted operating profit of SEK 34.2m (13.1), corresponding to an adjusted operating margin of 28.6% (12.2).

• Capitalized work on own account amounted to SEK 10.3m (9.4).

• In a year-on-year comparison, currency translation had a negative impact of SEK 3.3m on net sales and a negative impact of SEK 2.2m on operating profit for the period.

• Cash flow from operating activities amounted to SEK 32.7m (26.1).

First quarter in brief
• President and CEO Richard Lind announced his departure for later in 2024.
• New CEO Cecilia Wachtmeister appointed to assume the role no later than October 1
• IAR launches the functional safety version of IAR Embedded Workbench for Arm

About IAR
At IAR, we provide world-leading software and services for embedded development, empowering companies globally to bring secure products that shape the future. Since its founding in 1983, our solutions have been instrumental in ensuring quality, security, reliability, and efficiency in the development of over one million embedded applications for a wide range of industries, including Automotive, Industrial Automation, IoT, MedTech, Military, and Public Safety sectors. With support for 15,000 devices from over 70 semiconductor partners, we are dedicated to fostering innovation and enabling our customers' success.

The company is headquartered in Uppsala, Sweden, with a global presence of sales and support offices strategically located across the world. IAR is an I.A.R. Systems Group AB subsidiary, listed on NASDAQ OMX Stockholm, Mid Cap (ticker symbol: IAR B). To learn more, visit us at www.iar.com.