I.A.R. Systems Group AB Year-end-report 2021

JANUARY–DECEMBER 2021
› EBITDA adjusted for non-recurring items of SEK
119.9m* (132.7), corresponding to an
EBITDA margin of 33.7%* (35.7)
› Operating profit adjusted for non-recurring items of
SEK 65.7m* (83.8), corresponding to an operating margin
of 18.5%* (22.5)
› Loss before tax of SEK -68.6m (76.8)
› Basic earnings per share of SEK -4.94 (4.35) and diluted
earnings per share of SEK -4.94 (4.35)
› Operating expenses included impairment of intangible
assets of SEK 118m and costs of SEK 16m related to the
dismissal of the CEO
› In a year-on-year comparison, currency translation
had a negative impact of SEK -20.5m on net sales for
the period and a negative impact of SEK -9.2 on operating
profit.
› Cash flow from operating activities of SEK 131.6m
(118.4)
› Net cash of SEK 57.4m (1.5) at the end of the period

OCTOBER–DECEMBER 2021
› EBITDA adjusted for non-recurring items of SEK 29.2m*
(32.5), corresponding to an
EBITDA margin of 31.9%* (35.8)
› Operating profit adjusted for non-recurring items of
SEK 15.2m* (19.0), corresponding to an operating margin
of 16.6%* (20.9)
› Loss before tax of SEK -117.2m (14.5)
› Basic earnings per share of SEK -7.72 (0.88) and diluted
earnings per share of SEK -7.72 (0.88)
› Operating expenses included impairment of intangible
assets of SEK 118m and costs of SEK 16m related to the
dismissal of the CEO
› In a year-on-year comparison, currency translation
had a negative impact of SEK -0.9m on net sales for the
quarter and a positive impact of SEK 0.5m on operating
profit
› Cash flow from operating activities of SEK 40.5m (27.8)

* Refer to Note 8 in the Year-end-report. 

KEY EVENTS DURING THE QUARTER
› On October 18, 2021, the Board resolved to relieve
former CEO and to appoint Richard Lind as acting CEO.
On December 9, 2021, the Board appointed Richard
Lind as permanent CEO.
› On December 17, 2021, the company announced an impairment
of individual intangible development assets
that are no longer relevant products, mainly within
the area of security as a result of a revised assessment
of the rate of innovation and development, which
will also affect the amortization periods of certain
intangible assets in the future. The impairment of SEK
118m is of a non-recurring nature and will not affect
cash flow.

PROPOSED DIVIDEND
The Board of Directors intends to propose to the AGM on April 26, 2022 that no dividend be
paid. The Board based this proposal on the fact that it will enable the company’s growth
strategy to be accelerated.

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
February 10, 2022, at 1:00 p.m. CET.

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.