Year-end Report 2013

Significantly improved cash flow for the year
- Success with graphic displays slows down margin and earnings

• French Intermarché selects Pricer’s solution – Estimated value SEK 50 M
• Strategic deal with electronics chain Media Saturn – Value SEK 65 M
• Japanese Inageya upgrades – Estimated value SEK 35 M
• Additional business with Coop Norway – Installations in some 150 stores
• Harald Bauer replaced Fredrik Berglund as CEO
• Both net sales and operating profit are expected to be better in 2014 than 2013

Subsequent events

• Group Auchan Schiever upgrades hypermarkets – Value SEK 10 M
• French retailer Coop Atlantique new customer – Estimated order value is SEK 20 M

Fourth quarter
Order entry: SEK 114 M (76)
Net sales: SEK 151.9 M (144.2)
Gross margin: 19.5 percent (27.7)
Operating profit: SEK -4.4 M (11.5)
Operating margin: -2.9 percent (8.0)
Net profit: SEK -4.9 M (-16.0)
Cash flow: SEK 52.5 M (9.3)
Basic earnings per share: SEK -0.04 (-0.15)

January - December
Order entry: SEK 523 M (512)
Net sales: SEK 524.6 M (549.2)
Gross margin: 24.2 percent (31.2)
Operating profit: SEK 7.8 M (69.7)
Operating margin: 1.5 percent (12.7)
Net profit: SEK 4.2 M (35.6)
Cash flow: SEK 56.5 M (23.2)
Basic earnings per share: SEK 0.04 (0.33)

Comments from the CEO, Harald Bauer
2013 presented a number of challenges. The continuing economic downturn in Europe has impeded growth. Customers have in growing numbers switched to graphic labels, which are more expensive to produce than the previous generation of labels. The proportion of graphic labels has increased value-wise during the year from 10 to 40 percent. The switching to graphic labels is in essence a good thing. These displays allow retailers to communicate other important information than just the price, such as product information and promotional offers. They open the door for an improved market potential at existing customers and at new market segments. This broadens demand for our solutions.

We have continued work on developing our products both to reduce costs and increase quality. Temporary problems at suppliers in connection with new product models have led to extra one-time costs in the fourth quarter of about SEK 6.5 M.

The economic downturn in Europe has meant that some of our larger customers have concluded fewer and smaller deals with us than expected. On the other hand, we made key strategic gains during the year with other customers in the food industry and in electronic retail chains, such as with Intermarché and Media Saturn.

The number of pilot installations remained at a high level during the year, which fills us with optimism about the future.

During the year we passed a milestone in our history – Pricer installed its hundred millionth label.

I am optimistic about 2014. We have already publicised new important deals and several test projects which are up-and-running are yielding encouraging results. In all, we anticipate that 2014 will see improved sales and operating profit compared with 2013.

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