I.A.R Systems

Fourth quarter October–December 2023
• Net sales were SEK 125.9m (108.8), with growth of 15.7% and 14.9% in local currency.
• EBITDA of SEK 44.5m (32.4), corresponding to an EBITDA margin of 35.3% (29.8).
• Adjusted EBITDA of SEK 46.4m (33.6), corresponding to an adjusted EBITDA margin of 36.9% (30.9).
• Operating loss of SEK -255.8m (16.5), corresponding to an operating margin of -203.2% (15.2).
• Adjusted operating profit of SEK 32.1m (17.7), corresponding to an adjusted operating margin of 25.5% (16.3).
• Capitalized work on own account amounted to SEK 9.1m (16.2).
• In a year-on-year comparison, currency translation had a positive impact of SEK 0.9m on net sales and a negative impact of SEK 1.6m on operating profit for the period.
• Cash flow from operating activities amounted to SEK 36.9m (25.8).

January–December 2023
• Net sales were SEK 458.1m (419.0), with growth of 9.1% and 5.3% in local currency.
• EBITDA of SEK 143.6m (129.0), corresponding to an EBITDA margin of 31.3% (30.7).
• Adjusted EBITDA of SEK 153.1m (130.2), corresponding to an adjusted EBITDA margin of 33.4% (31.0).
• Operating loss of SEK -204.1m (75.7), corresponding to an operating margin of -44.6% (18.0).
• Adjusted operating profit of SEK 96.1m (76.9), corresponding to an adjusted operating margin of 21.0% (18.3).
• Capitalized work on own account amounted to SEK 36.1m (50.2).
• In a year-on-year comparison, currency translation had a positive impact of SEK 16.0m on net sales and a positive impact of SEK 8.4m on operating profit for the period.
• Cash flow from operating activities amounted to SEK 144.1m (127.7).

Fourth quarter in brief
• Share buybacks continued
• Restructuring of the subsidiary in Cambridge complete, with impairment of goodwill and intangible assets amounting to approximately SEK 290m.

About IAR
IAR provides world-leading software and services for embedded development, enabling companies worldwide to create secure and innovative products for today and tomorrow. Since 1983, IAR’s solutions have ensured quality, security, reliability, and efficiency in developing over one million embedded applications for companies across industries such as industrial automation, IoT, automotive and medical. IAR supports 15,000 devices from over 70 semiconductor partners. The company is headquartered in Uppsala, Sweden, and has sales and support offices worldwide. IAR is owned by I.A.R. Systems Group AB, listed on NASDAQ OMX Stockholm, Mid Cap (ticker symbol: IAR B). Learn more at www.iar.com.