IAR Systems Group Year-end-report 2016

Best year on record – Operating margin of 29%

Sales for the year of SEK 328m and EBITDA of SEK 113m

Full-year 2016
• Net sales of SEK 328.4m (311.7)
• EBITDA of SEK 113.2m (98.3), corresponding to an EBITDA margin of 34.5% (31.5)
• Operating profit of SEK 96.5m (83.4), corresponding to an operating margin of 29.4% (26.8)
• Profit before tax of SEK 96.1m (83.3)
• Earnings per share of SEK 7.38 (6.33) after current tax
• Basic earnings per share of SEK 5.86 (5.02) and diluted earnings per share of SEK 5.86 (5.02)
• Cash flow from operating activities of SEK 114.2m (98.7)
• Net cash of SEK 96.5m (87.6) at the end of the period
• The Board intends to propose an ordinary dividend of SEK 5.00 for approval by the AGM on April 26, 2017
October-December 2016
• Net sales of SEK 85.0m (75.9)
• EBITDA of SEK 31.2m (22.2), corresponding to an EBITDA margin of 36.7% (29.2)
• Operating profit of SEK 26.7m (18.4), corresponding to an operating margin of 31.4% (24.2)
• Profit before tax of SEK 26.4m (18.4)
• Earnings per share of SEK 2.00 (1.36) after current tax
• Basic earnings per share of SEK 1.59 (1.09) and diluted earnings per share of SEK 1.59 (1.09)
• Cash flow from operating activities of SEK 39.5m (28.1)

Key events during the year
In April 2016, IAR Systems signed an exclusive royalty agreement with Renesas Electronics Corporation for Renesas Synergy Platform, a comprehensive solution for innovative product development in new markets, such as the Internet of Things. The new agreement will provide revenue from royalties for each microprocessor used in the products the customer eventually manufactures. The agreement covers all types of processors offered in Renesas Synergy Platform.

Stefan Skarin, CEO, IAR Systems Group AB
email stefan.skarin@iar.com

IAR Systems is the world’s leading independent provider of software for programming of processors in embedded systems. IAR Systems’ software is used by many of the world’s largest corporations, as well as thousands of small and medium-sized companies, mainly operating in industrial automation, medical technology, telecommunications, consumer electronics and the automotive industry. IAR Systems Group AB is listed on the Mid Cap list of Nasdaq Stockholm.