IAR Systems Group AB (PUBL) Interim Report January-June 2012

Sales up by 21% and operating margin of 13%

Net sales of SEK 114.4m (94.7), of which SEK 56.4m (48.9) in the second quarter
Operating profit of SEK 15.3m (9,2), of which SEK 7.3m (5.4) in the second quarter
Profit before tax of SEK 15.3m (9.0), of which SEK 7.7m (5.3) in the second quarter
The period’s cash flow from operating activities was SEK 15.4m (9.1) and net cash at the end of the quarter totaled SEK 42.6m (28.8)
Operating margin of 13.4% (9.7) for the six-month period and 12.9% (11.0) for the second quarter
Earnings per share before dilution and calculated on profit from continuing operations
after current tax amounted to SEK 1.23 (0.76), of which SEK 0.61 (0.44) for the second quarter
In local currency, net sales for the period increased by 19% in the USA, 14% in Europe and 23% in Asia compared to the same period of last year

Key events during the period

IAR Systems opens sales office in Seoul, South Korea
IAR Systems’ debug probe I-jet delivered in all markets
Sale of 300,000 treasury shares in May 2012 for a value of SEK 11.6m

IAR Systems is the world’s leading supplier of software tools for developing embedded systems
applications. The software enables over 14 000 large and small companies to develop premium
products based on 8-, 16-, and 32-bit microcontrollers, mainly in the areas of industrial automation,
medical devices, consumer electronics, telecommunication and automotive products. IAR Systems has
an extensive network of partners and cooperates with the world’s leading semiconductor vendors. IAR
Systems Group AB is listed on NASDAQ OMX Stockholm. For more information, please visit
www.iar.com