IAR Systems Group Year-end-report 2014

Net sales of SEK 256m, EBITDA of SEK 64m and cash flow of SEK 70m

Operating margin of 21%

Full year 2014

• Net sales of SEK 255.7m (230.2)
• EBITDA of SEK 63.6m (50.6)
• Operating profit of SEK 53.2m (41.3)
• Profit before tax of SEK 53.6m (41.4)
• Cash flow from operating activities of SEK 70.3m (40.7)
• Net cash at year-end of SEK 68.4m (80.1)
• EBITDA margin of 24.9% (22.0)
• Operating margin of 20.8% (17.9)
• Earnings per share after current tax of SEK 4.15 (3.20)
• Basic earnings per share of SEK 3.37 (2.59) and diluted earnings per share of SEK 3.35 (2.58)
• The Board intends to propose a total dividend of SEK 5.00 per share for approval by the AGM on April 29, 2015. The ordinary dividend is proposed at SEK 4.00 and the extraordinary dividend at SEK 1.00, for a total distribution of SEK 63.2m.

October-December 2014

• Net sales of SEK 66.1m (61.5)
• EBITDA of SEK 16.3m (12.6)
• Operating profit of SEK 13.5m (10.1)
• Profit before tax of SEK 13.5m (10.3)
• Cash flow from operating activities of SEK 16.0m (10.0)
• EBITDA margin of 24.7% (20.5)
• Operating margin of 20.4% (16.4)
• Earnings per share after current tax of SEK 1.04 (0.76)
• Earnings per share of SEK 0.84 (0.58) before dilution and SEK 0.84 (0.57) after dilution

Key events during the year

• Launch of C-RUN as an add-on product
• The new issue of 287,500 class B shares through the exercise of subscription warrants provided the company with proceeds SEK 9.8m
• SEK 62.7m was transferred to the shareholders through a redemption procedure in the second quarter of the year