YEAR-END REPORT ORC GROUP HOLDING AB JANUARY 1 – DECEMBER 31, 2013

This year-end report refers to Orc Group Holding AB (publ) - (formerly Cidron Delfi Intressenter AB (publ)) - and the Orc Group Holding Group for the period from January 1 to December 31, 2013. At the beginning of 2012, Orc Group Holding AB acquired Orc Group through a public tender offer directed to the shareholders in Orc Group AB (publ). Following the sale of Orc’s former subsidiaries and sub-groups CameronTec and Neonet, continuing operations in the Orc Group Holding Group consist solely of operations in Orc since October 2012. As a result, the comments in this year-end report refer only to developments in Orc.

THE MARKET REMAINS CHALLENGING, CAUTIOUS OPTIMISM FOR THE YEAR AHEAD

• Operating revenue for the period from October to December 2013 was SEK 102m (120), a decrease of 15%. Adjusted EBITDA was SEK 39m (60).
• Operating revenue for the period from January to December 2013 amounted to SEK 427m (511), down by 16%. Adjusted EBITDA was SEK 199m (238).
• Revenue was down compared to the corresponding periods of last year mainly as a result of declining demand in the global financial markets. The completed rationalization programs and other adaptations to the current market conditions resulted in lower expenses for the full year. Repositioning and development of the company’s sales offering gave rise to higher expenses in the final quarter of the year. Investments in product development continued at an unchanged level.
• The launch of the Professional Services concept has been well received and revenue for January to December reached SEK 8m (3).

CEO TORBEN MUNCH COMMENTS:
“In the fourth quarter we noted a positive reception for Orc’s new products. However, our efforts to capitalize on the opportunities that this creates and generate revenue will take time. The market for financial products and services remains challenging. As a consequence of this, Orc reported a drop in revenue compared to the preceding quarter.

Costs were higher than in the third quarter, when seasonal effects contributed to a lower cost level. Orc is sticking to its strategy to make substantial ongoing investments in product development, which has resulted in downward pressure on EBITDA-CAPEX. At the same time, we are maintaining strict cost discipline and focusing continuously on cost savings that have no negative impact on the realization of our strategy.

In January 2014 we launched a repositioning of Orc in line with our new product and service offering, which we are able to introduce thanks to our development investments. Our clients have shown strong interest and given us positive feedback, which gives us reason to look forward to 2014 with higher expectations than at the same time last year, and with a continued belief in our strategy.”

ABOUT ORC
Orc is the global market leader in trading technology for listed derivatives. Building on our commitment to long term partnerships and technology innovation that delivers results, Orc serves the trading and electronic execution needs of clients worldwide.

Leading trading firms, market makers, banks and brokers depend on Orc to provide robust solutions that deliver concrete value, ensuring that they achieve their business goals in the world’s increasingly dynamic and competitive markets.

With nearly 200 customer sites in more than 30 countries, access to over 150 trading venues and offices in each of the world’s key financial centers, we offer true global capabilities.

Combining our technology and financial industry expertise, including a solid understanding of regulatory issues, Orc also provides expert advice and services that help reduce complexity and cost, while enabling clients to stay focused on value creation in their core businesses.

Orc is owned by Orc Group Holding AB which in turn is owned mainly by Nordic Capital Fund VII.

For more information visit: orc-group.com

 
CONTACT INFORMATION
CEO Torben Munch, phone: +46 8 506 477 35
CFO Tony Falck, phone: +46 8 506 477 24

The information in this year-end report is subject to the disclosure requirements of Orc Group Holding AB under the Swedish Securities Exchange and Clearing Operations Act and the Financial Instruments Trading Act. The information was released for publication on February 20, 2014, 8:00 a.m. CET.

N.B. The English text is a translation of the Swedish text. In case of discrepancy between the Swedish and the English text the Swedish version shall prevail.

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