Year-End Report - Cinnober Financial Technology AB

Period January 1, 2015 – December 31, 2015

• Net sales for the year amounted to SEK 300.5 million (SEK 270.1 million). 
• Operating profit for the year amounted to SEK 17.7 million (loss SEK 3.4 million).
• The loss before tax for the year amounted to SEK 22.0 million (profit SEK 0.6 million). In the third quarter, the book values of two separate shareholdings in external companies, totaling SEK 36.8 million, were written down in their entirety. Although this entails a non-recurring negative impact on earnings, neither the consolidated operating results nor cash flow were affected by the impairments.
• Earnings per share before dilution for the year amounted to a loss of SEK 4.26 (profit SEK 0.21). 
• The proportion of recurring revenue for the year amounted to 61 percent of net sales*.
• Ahead of the Annual General Meeting, the Board will prepare a proposal on the appropriation of profits for the 2015 financial year. This proposal will be included in the invitation to attend the Annual General Meeting.
• ASX, one of the world’s ten largest marketplaces, has chosen Cinnober as the supplier of a new trading system for both equity and derivatives trading. This is categorized as a major deal**.
• The European Commission is contributing more than EUR 2 million to the funding of Cinnober’s project to further develop and adapt its clearing technology for European banks. 
• Cinnober has performed a major design study regarding clearing systems at one of the world’s largest stock exchanges. An agreement is expected to be signed shortly.

* 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 year-end report

“The positive signals in the market have grown increasingly evident over the past year”, says Veronica Augustsson, CEO, in a comment. “IT investments are increasing in the financial sector and are being stimulated by evolving amended regulations and demands for increased efficiency. These needs generate demand for modern technology. The positive signals are reflected in our net sales for the fourth quarter, which amounted to SEK 90.8 million – an increase of SEK 24.8 million compared with the corresponding quarter in 2014. At the same time, operating income for the fourth quarter amounted to SEK 8.7 million, compared with SEK -6.2 million for the corresponding period last year.”

Attachment: Year-End Report January 1, 2015 – December 31, 2105

Cinnober Financial Technology discloses the information provided herein pursuant to the Securities Market Act (Sw. “Lagen om värdepappersmarknaden”). The information was submitted for publication on February 25, 2016 at 11:00 (CET).

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 stock exchanges, clearinghouses, banks and brokerages.
• The company was founded in 1998, currently has over 250 employees (excluding consultants), representing some thirty nationalities. 
• It offers solutions in price discovery, order matching, market data, index calculations, clearing, risk management and market surveillance. 
• Cinnober’s shares are listed on the Nasdaq First North exchange (CINN, ISIN code: SE0000778474). Avanza is the Certified Adviser.