I.A.R. Systems Group AB (publ) Interim Report Jan-Sept 2021

Q3 2021
Net sales SEK 87.9m (88.9), EBITDA SEK 34.3m (36.8)

JANUARY–SEPTEMBER 2021
› EBITDA of SEK 90.7m (100.2), corresponding
to an EBITDA margin of 34.3% (35.6)
› Operating profit of SEK 50.5m (64.8), corresponding to
an operating margin of 19.1% (23.0)
› Profit before tax of SEK 48.5m (62.3)
› Basic earnings per share of SEK 2.79 (3.48) and diluted
earnings per share of SEK 2.78 (3.47)
› In a year-on-year comparison, currency translation had
a negative impact of SEK -19.6m on net sales for the
period and a negative impact of SEK -9.7 on operating
profit.
› Cash flow from operating activities of SEK 91.1m
(90.6)
› Net cash of SEK 36.4m (-0.4) at the end of the period

JULY–SEPTEMBER 2021
› EBITDA of SEK 35.0m (36.8), corresponding
to an EBITDA margin of 39.8% (41.4)
› Operating profit of SEK 20.9m (25.4), corresponding to
an operating margin of 23.8% (28.6)
› Profit before tax of SEK 20.6m (24.9)
› Basic earnings per share of SEK 1.17 (1.37) and diluted
earnings per share of SEK 1.17 (1.37)
› In a year-on-year comparison, currency translation
had a negative impact of SEK -0.4m on net sales for the
quarter and a positive impact of SEK 1.2m on operating
profit.
› Cash flow from operating activities of SEK
41.4m (32.7)

KEY EVENTS DURING THE QUARTER
› Ann Zetterberg assumed the role of CFO on August 16,
2021.
› Nadim Shehayed, the former CEO of IAR Systems’ US
subsidiary IAR Systems Software Inc., pleaded guilty
in the embezzlement case that led to his dismissal in
2012. He has been sentenced to prison and probation
and ordered to pay USD 550,000 in damages, of which
USD 250,000 was paid immediately and recognized
as other income in the third quarter. The ruling was
issued in October 2021, while damages were paid in
September 2021.

KEY EVENTS AFTER THE END OF THE QUARTER
› On October 18, 2021, the Board resolved to relieve
Stefan Skarin of his CEO duties and appointed Richard
Lind as Acting CEO.

This information is inside information that I.A.R. Systems
Group AB (publ) is obliged to make public pursuant to the EU
Market Abuse Regulation. The information was submitted for
publication, through the agency of the contact person set out
below, on October 27, 2021, at 11:00 a.m. CEST.

Contact person: Josefin Skarin, Investor Contact, I.A.R. Systems
Group AB, Email: josefin.skarin@iar.com

About IAR Systems

IAR Systems supplies future-proof software tools and services for embedded development, enabling companies worldwide to create the products of today and the innovations of tomorrow. Since 1983, IAR Systems’ solutions have ensured quality, reliability and efficiency in the development of over one million embedded applications. The company is headquartered in Uppsala, Sweden and has sales and support offices all over the world. Since 2018, Secure Thingz, a provider of advanced security solutions for embedded systems in the IoT, is part of IAR Systems. IAR Systems Group AB is listed on NASDAQ OMX Stockholm, Mid Cap. Learn more at www.iar.com.