Interim report Q1, 2023

FIRST QUARTER

• Net sales amounted to SEK 11.2 (7.7) million
• EBITDA amounted to SEK 1.1 (1.0) million
• EBIT amounted to SEK -0.1 (0.9) million
• EBT amounted to SEK -0.1 (0.9) million

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

Thomas Jönsson and Johan Lembre were appointed new members of the board at an extraordinary general meeting.

Observit has applied for its shares to be listed on Nasdaq First North Growth Market.

ABOUT OBSERVIT AB

Observit is currently the market leader in the Nordic region when it comes to mobile video surveillance in public transportation. The customer base includes major well-known bus operators such as Nobina, Keolis, Arriva, and other transportation-heavy clients like Elis. The company provides its software as a cloud service, a SaaS (Software as a Service) solution, and currently has around 38,000 licenses (one license per security camera) connected worldwide. In 2022, Observit acquired the English companies ICanProveIT Ltd and SITOC Ltd as part of its expansion strategy, both geographically and into new business areas, such as the commercial transport sector.

CEO STATEMENT

We are a company that has done everything right. But cautiously. We have demonstrated that we have a product that the market likes, as evidenced by nearly 38,000 active units. However, we have not been visible. That is changing now.

Observit has initiated its geographical expansion with the acquisition of former partners SITOC and Icanprove.IT in the United Kingdom. We are now present in the UK with a local organization, existing customers, and an entirely new offering in our industrial dashcam solutions. This offering complies with GDPR requirements for installing cameras that monitor the exterior of a vehicle. This is how we continue to do everything right, but not cautiously. This is how we increase the number of active units, ensuring visibility.

We are a company that is transitioning from an organization without sales representatives to a revamped setup, adding a hungry sales organization. They know what they need to do: spread the positive references we have earned in the Nordic market. They will make sure that our major operator partners' colleagues in other countries also know who Observit is. Our organization is capable of introducing a new product to the European market—a new addition in our industrial dashcam solutions that enhances the utilization of video in vehicles, creating value and savings for our customers.

The first quarter has been marked by restructuring costs in our English subsidiaries and expenses associated with the listing process. However, despite this, we have maintained a positive cash flow, and now the restructuring is starting to show its effects, and we are now prepared for geographical expansion.

Observit has been and will remain an innovation-driven company. It is easy to say, but for us, it means being responsive to the market we operate in. We aim to understand and explore the challenges faced by bus operators and commercial vehicle fleets. By continuing to ask questions and being curious, we will keep driving innovation. By listening, we will develop our service portfolio to stay one step ahead.

The goal is simple: to enter the European market. The United Kingdom and France are at the top of the list. And we will achieve that in 2023!

This report is to be found on: https://www.observit.com/investor-relations/

Björn Callenfors

CEO

 +46 70 535 00 76

Bjorn.callenfors@observit.se

Certified Adviser:

Aktieinvest FK AB (556072-2596)

Box 7415 103 91 Stockholm

Telefon: +46 8 506 517 03

ca@aktieinvest.se

www.aktieinvest.se

Observit AB (publ) is obligated to publish this information under the EU Market Abuse Regulation. The information was provided by the above contact person's auspices, for publication on May 31st, 2023 at 10.50 p.m. CET.

Om Observit AB

Observit är marknadsledande i Norden när det gäller mobil videoövervakning inom kollektivtrafiken. I kundbasen finns stora välkända bussoperatörer som Nobina, Keolis, Arriva samt andra transporttunga kunder som Elis. Företaget tillhandahåller programvara som en molntjänst, en SaaS-lösning (Software as a Service), och har för närvarande cirka 38 000 licenser (en licens per säkerhetskamera) anslutna över hela världen. Under 2022 förvärvade Observit de engelska företagen ICanProveIT Ltd och SITOC Ltd som en del av sin expansionsstrategi, både geografiskt och till nya affärsområden, såsom den kommersiella transportsektorn. Mer information www.observit.com.