Year-End Report - Cinnober Financial Technology AB

Year-End Report January 1, 2016 – December 31, 2016

  • Net sales for the year amounted to SEK 330.9 million (SEK 300.5 million).
  • Operating profit for the year amounted to SEK 9.5 million (SEK 16.0 million).
  • Profit before tax for the year amounted to SEK 8.8 million (loss SEK 22.0).
  • Earnings per share before dilution for the year amounted to SEK 0.67 (loss SEK 4.26).
  • The proportion of recurring revenue for the year amounted to 67 percent (61 percent) of net sales.*
  • Major deal with Japan Exchange Group (JPX) for real-time clearing for the Japanese derivative market. In addition, a smaller deal was signed regarding advanced risk calculations for all asset classes traded in the Japanese financial market.**
  • During the year, a design study was delivered to a major international exchange group regarding real-time clearing and CSD systems. The design study has been completed and commercial negotiations on the implementation of the systems are in progress.
  • The Board proposes that no dividend be paid for the accounting period.
  • Following the end of the year, an agreement was reached with an Asian marketplace (as yet unnamed at the request of the customer) whereby Cinnober will provide a real-time clearing system. The transaction is considered to be medium-sized.**
  • Following the end of the year, the Board of Directors of Cinnober has resolved to investigate the possibility to carry out a directed new issue of shares in order to finance the further development of the sales of technology and services for real-time clearing to banks, so called client clearing. These operations will form a separate business area, pursued through a wholly-owned subsidiary of Cinnober.

To improve comparability between periods, re-invoiced expenses have been excluded from net sales in the calculation of recurring revenues.
** See commercial definitions on p.15 in the full Interim report

Cinnober finds itself in an expansionary phase in which we are continuing to reap success in our traditional segments: exchanges and clearinghouses”, says Veronica Augustsson, CEO, in a comment. ”In 2016, we expanded and recruited continuously to meet growing demand. At the same time, we are investing in future growth through expanded target groups, mainly through reporting services, as well as clearing and risk solutions targeted at international banks and brokerages.”

Attachment: Year-End Report January 1, 2016 – December 31, 2016

This information is information that Cinnober Financial Technology AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 17:33 CET on 22 February 2017.

For further information

Veronica Augustsson, CEO, phone +46 8 503 047 00, veronica.augustsson@cinnober.com

Cinnober in brief

  • Cinnober develops business-critical system solutions for exchange trading, risk management and other financial services.
  • Its target group consists primarily of international exchanges, clearinghouses, banks and brokerages.
  • The company was founded in 1998, currently has some 290 employees (excluding consultants), representing some 30 nationalities.
  • It offers solutions in price discovery, order matching, market data, index calculations, clearing, risk management and market surveillance.
  • The Cinnober share is listed on NASDAQ First North (CINN, ISIN code: SE0000778474, LEI code: 529900596KTN6Q8T7576). Avanza is the Certified Adviser.

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About Us

Cinnober Financial Technology, now part of Nasdaq, is a world-leading supplier of financial technology. Founded in Sweden in 1998, the company has offices in Stockholm, Umeå and London. Cinnober provides solutions and services to leading trading and clearing venues, including exchanges, clearinghouses, banks and brokers. Cinnober’s solutions are largely based on the TRADExpress™ Platform, incorporating everything needed for mission-critical solutions in terms of performance, robustness and flexibility. The portfolio of offerings includes price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and market surveillance. Cinnober’s customers include the Asia Pacific Exchange, Australian Securities Exchange, B3, Bitstamp, Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE, OCC and the Stock Exchange of Thailand. Cinnober’s shares are traded on the Nasdaq First North exchange and the company’s Certified Advisor is FNCA Sweden AB. For additional information, please visit group.cinnober.com.

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Quotes

Cinnober finds itself in an expansionary phase in which we are continuing to reap success in our traditional segments: exchanges and clearinghouses. In 2016, we expanded and recruited continuously to meet growing demand. At the same time, we are investing in future growth through expanded target groups, mainly through reporting services, as well as clearing and risk solutions targeted at international banks and brokerages.
Veronica Augustsson