===== SIDA 1 ===== Q3 INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2023 Full-year outlook kept despite cautious market and lower margins during the quarter January 1 – September 30, 2023 • Net sales amounted to MSEK 1,915 (1,805). Adjusted for changes in foreign exchange rates, the revenue growth was flat. • EBITA decreased 12 percent to MSEK 207 (234). • The EBITA margin was 10.8 (13.0) percent. • Profit after tax decreased 20 percent to MSEK 105 (131). • Earnings per share decreased 20 percent to SEK 5.42 (6.75). Third quarter 2023 • Net sales amounted to MSEK 633 (617). Adjusted for changes in foreign exchange rates, net sales decreased 1 percent. • EBITA decreased 19 percent to MSEK 53 (66). • The EBITA margin was 8.4 (10.7) percent. • Profit after tax decreased 37 percent to MSEK 22 (34). • Earnings per share decreased 37 percent to SEK 1.12 (1.78). BTS GROUP AB (PUBL) ===== SIDA 2 ===== The third quarter was similar to the second quarter. Customers remained cautious and it took longer to close new deals. The more conservative approach among customers in North America at the beginning of the year has now, with a few exceptions, affected all our markets. Despite the weaker sentiment in the market, our revenue at group level in the third quarter remained just about flat, currency adjusted. In North America, net sales were unchanged compared to the same period previous year. During the year, we have consciously chosen to diversify more outside tech, and focus on selected industries with stronger demand for BTS offerings. Therefore, it was gratifying to see that the increase in sales was particularly large within the energy, biotech, pharma, financial services, and consumer packaged goods sectors. We foresee that our intensified sales efforts and diversifying strategy will have an even stronger effect on the revenue development in the fourth quarter. In BTS Europe, the market remained cautious because of delays and cost savings among customers. This market conservatism, combined with BTS Europe having one major project cancelled, explains the revenue decline of 4 percent. As in North America, pharmaceuticals and financial services were among the stronger sectors, while the trend remained subdued in manufacturing and tech. We saw price pressure in the European market, but in BTS Europe, as well as within the rest of the Group, we continue to be disciplined in terms of both price and scoping of customer projects. BTS Other markets experienced a slight slowdown but still managed to grow by 3 percent due to increased growth in the Middle East, Southeast Asia, Italy and Spain, and by reallocating resources to customer projects or countries with relatively high demand. The Group’s EBITA margin decreased to 8.4 (10.7) percent in the third quarter. The EBITA margin fell in all operating units; in BTS North America to 8.9 (10.3) percent, in BTS Europe to 2.8 (8.3) percent, and in BTS Other markets to 11.6 (14.2) percent. In BTS North America, the decreased margin is mainly due to the weaker market. In BTS Europe, the margin decline was explained by lower sales, a lingering higher salary cost level and a customer project mix that temporarily required more external consultants. The margin drop in BTS Other markets was due to some one-off costs, mainly related to the closing of one of the offices in Spain, as part of the efficiency measures. Operational efficiency The workforce planning and efficiency initiatives implemented earlier this year are proceeding according to plan in all operating units and are expected to have full effect in the fourth quarter. These moves, spanning performance management, a better talent/work mix, and sharing of talent cross-borders, not only contribute to increased profitability short-term, but also set us up for easier scale longer-term. Productivity gains from exploring Generative AI (GAI) this year is quantified in our 2024 business planning across all practice areas and functions. Outlook In general, there is still a market conservatism, and combined with the uncertainties in the financial and geopolitical areas, the future is difficult to assess. At the same time, we can see that the efficiency measures we implemented earlier in the year are having the intended effect and that they will have full impact as planned in the fourth quarter. We also anticipate improvement in revenue growth in the fourth quarter in North America and in Other markets. All in all, this means that we are keeping our forecast that the result for 2023 is expected to be in line with the outcome 2022. Stockholm, November 10, 2023 Jessica Skon CEO of BTS Group AB (publ) Full-year outlook kept despite cautious market and lower margins during the quarter CEO comments 2 | BTS Interim Report January 1–September 30, 2023 ===== SIDA 3 ===== OPERATIONS Sales BTS’s net sales for the nine-month period amounted to MSEK 1,915 (1,805). Adjusted for changes in foreign exchange rates, the revenue growth was flat. Growth varied between the units: BTS Other markets 6 percent, BTS Europe 2 percent, BTS North America –2 percent, and APG –13 percent. Earnings EBITA decreased 12 percent to MSEK 207 (234) for the nine-month period. The EBITA margin was 10.8 (13.0) percent. EBIT decreased 17 percent to MSEK 166 (200) for the nine-month period. The EBIT margin was 8.7 (11.1) percent. EBIT for the nine-month period was charged with MSEK –41.1 (–33.7) for amortization of intangible assets attributable to acquisitions. The Group’s profit before tax decreased 20 percent to MSEK 152 (190) during the nine-month period. The Group’s result was affected positively by improved profit in BTS Other markets, and negatively by the other operating units, compared to the same period previous year. Third quarter BTS’s third-quarter net sales amounted to MSEK 633 (617). Adjusted for changes in foreign exchange rates, the revenue decreased 1 percent. EBITA decreased 19 percent in the third quarter to MSEK 53 (66). The EBITA margin was 8.4 (10.7) percent. EBIT decreased 30 percent in the third quarter to MSEK 38 (54). EBIT margin was 5.9 (8.8) percent. EBIT for the third quarter was charged with MSEK –15.8 (–11.7) for amortiza- tion of intangible assets attributable to acquisitions. Profit before tax in the third quarter decreased 37 percent to MSEK 31 (50). The Group’s result was negatively affected by decreased profit in all operating units, compared to the same period previous year. 1) Excluding forgiven PPP loan. 1) Excluding forgiven PPP loan.1) Excluding forgiven PPP loan. 1) 1) 1) 1)1) 1) 19 20 21 22 19 20 21 22 19 20 21 22 19 20 21 22 23 23 23 Q1 Q2 Q3 Q4 0 100 200 300 400 500 600 700 800 MSEK MSEK 19 20 21 22 23 23 19 20 21 22 19 20 21 22 23 19 20 21 22 Q1 Q2 Q3 Q4 0 20 40 60 80 100 0 20 40 60 80 100 120 MSEK % 0 20 40 60 80 100 120 Q3Q2Q1 2023 Q4Q3Q2Q1 2022 Q4Q3Q2Q1 2021 Q4Q3Q2Q1 2020 Q4Q3 2019 Profit before tax, MSEK EBITA margin, % 0 5 10 15 20 25 30 MSEK MSEK 0 600 1,200 1,800 2,400 3,000 Q3Q2Q1 2023 Q4Q3Q2Q1 2022 Q4Q3Q2Q1 2021 Q4Q3Q2Q1 2020 Q4Q3 2019 Net sales EBITA 0 80 160 240 320 400 EBITA BY QUARTER REVENUE BY QUARTER PROFIT BEFORE TAX AND EBITA MARGIN BY QUARTER NET SALES AND EBITA ROLLING 12 MONTHS BTS Interim Report January 1–September 30, 2023 | 3 ===== SIDA 4 ===== Market development The overall market felt similar in the third quarter compared to the second quarter. The geopolitical and economic uncertainties have led companies to be more cautious about their investments in human capital, which has led to a slowdown across the consulting and corporate training markets. In 2023, we started to notice this in the first quarter in North America, and during the second quarter in both BTS Europe and in some countries within BTS Other markets which experienced similar client delays and conservatism. BTS North America continued to see the effects of the slowdown in the tech industry and experienced continued delays in project start dates, as well as longer time required to close new deals. However, an increase in the demand for our services towards the end of the quarter was noticed from some clients. We also experienced movement in the sales pipeline from some of our tech/ software clients as they shifted into planning for 2024. The ultra-conservative budget-freezing seems to be shifting towards prioritizing selected initiatives. This gives us some optimism, but it is tempered by the fact that there still seems to be a cautious bias towards short- term spending despite falling inflation and stronger economic data. BTS Europe continued to experience a combination of client conservatism and price sensitivity with the tech and manufacturing sectors being the most conservative. BTS Other markets had a mix of strong and weak economies. Geographies such as Southeast Asia, Middle East, South Africa and Italy experienced strong market growth and normal client demand, with a few exceptions, mainly in Asia including China. Operational development Over the course of this tough year, BTS has made advances within operational efficiency as noted in the CEO comments. Advances have also been made in three areas: 1. Overall competitiveness and pipeline discipline 2. Innovation 3. Talent growth Overall competitiveness and pipeline discipline All units have been focused on spending more time with the right industries and companies where the demand for BTS’s services has been particularly strong and thereby diversifying outside of tech and software. BTS’s win rates in competitive deals have stayed consistent in North America and Other markets. BTS North America has brought in 41 new clients, BTS Other markets 91 new clients and BTS Europe 18 new clients so far this year. A new sector where BTS has won several recent deals, and at a significantly larger size than average, is the infrastructure sector. BTS Europe, BTS North America and BTS Middle East all won competitive deals in the infrastructure sector in the third quarter. Innovation New services driving growth in the third quarter fall into two categories: 1. Re-architecting training functions: Talent, leadership development and sales enablement functions are re-thinking their operations and how they deliver behavior change at scale and more on-demand, personalized learning. BTS is being asked to help them re-architect their function, and how they could serve tens of thousands of people throughout the year, in specific moments of need, leading to improved business impact. 2. GAI training and change services: The adoption of this tech is radically simpler and easier than traditional software implementations. However, the culture- shift required for companies to move fast and take advantage of the productivity benefits is not to be underestimated. BTS’s services in broad scale change and culture work seem to be well suited for this type of adoption and ways of working shifts. Talent growth We have also started to make sure our talent is stronger. We are doing this through company-wide consulting and proposal training, better performance management, acquiring new talent, and improving our knowledge management system organized by client problems. 4 | BTS Interim Report January 1–September 30, 2023 ===== SIDA 5 ===== SEGMENT REPORTING The effects of IFRS 16 are not included in the BTS Operating units reporting, which is why the effects are recognized as Group adjustments. Operating units BTS North America consists of BTS’s operations in the USA (excluding APG), Canada, and Switzerland. BTS Europe consists of operations in France, Germany, the Netherlands, Sweden, and the UK. BTS Other markets consists of operations in Argentina, Australia, Brazil, China, Costa Rica, India, Indonesia, Italy, Japan, Malaysia, Mexico, Singapore, South Africa, South Korea, Spain, Taiwan, Thailand, and the United Arab Emirates. APG consists of operations in Advantage Performance Group in the USA. NET SALES PER OPERATING UNIT MSEK Jul–Sep 2023 Jul–Sep 2022 Jan–Sep 2023 Jan–Sep 2022 Oct–Sep 2022/23 Jan–Dec 2022 BTS North America 315 308 946 900 1,299 1,254 BTS Europe 104 100 344 319 484 459 BTS Other markets 176 167 514 466 709 661 APG 39 42 111 120 148 156 Total 633 617 1,915 1,805 2,640 2,530 EBITA PER OPERATING UNIT MSEK Jul–Sep 2023 Jul–Sep 2022 Jan–Sep 2023 Jan–Sep 2022 Oct–Sep 2022/23 Jan–Dec 2022 BTS North America 28.0 31.8 104.9 120.0 155.0 170.2 BTS Europe 2.9 8.3 39.1 54.7 66.8 82.4 BTS Other markets 20.4 23.8 57.7 51.3 93.1 86.7 APG 0.1 0.3 –0.3 2.4 –0.4 2.3 EBITA per operating unit 51.4 64.1 201.4 228.4 314.6 341.5 Effects of IFRS 16 2.0 1.6 5.4 5.4 6.8 6.8 Total 53.4 65.7 206.9 233.9 321.3 348.3 NET SALES PER OPERATING UNIT JANUARY 1 – SEPTEMBER 30, 2023 (2022) BTS North America 49 (50) % APG 6 (6) % BTS Europe 18 (18)% BTS Other markets 27 (26)% NET SALES BY SOURCE OF REVENUE JANUARY 1 – SEPTEMBER 30, 2023 (2022) Programs 65 (64)% Development 23 (24)% Licenses 10 (11)% Other revenue 2 (1)% BTS Interim Report January 1–September 30, 2023 | 5 ===== SIDA 6 ===== BTS North America Net sales for BTS’s operations in North America amounted to MSEK 946 (900) for the nine-month period. Adjusted for changes in foreign exchange rates, revenue decreased 2 percent. EBITA amounted to MSEK 104.9 (120.0) in the nine-month period. The EBITA margin was 11.1 (13.3) percent. Net sales for the third quarter amounted to MSEK 315 (308). Adjusted for changes in foreign exchange rates, revenue was flat. EBITA amounted to MSEK 28.0 (31.8) in the third quarter. The EBITA margin was 8.9 (10.3) percent. Similar to the second quarter, BTS North America’s revenue was flat in the third quarter compared to the same period previous year. The slowdown in the tech sector and overall client conservatism across North America was offset by revenue from the Boda acquisition and revenue from BTS’s focus industries: energy, biotech, pharma, financial services and consumer packaged goods. BTS North America’s EBITA margin declined, mainly due to the lower revenue in the core business. The cost reduction activities communicated in the interim report for the first quarter started to take effect in the third quarter, with the majority taking effect in the fourth quarter of 2023. The cost efficiencies combined with improved revenue performance will lead to improved EBITA in the fourth quarter. BTS Europe Net sales for BTS Europe amounted to MSEK 344 (319) for the nine-month period. Adjusted for changes in foreign exchange rates, revenue increased 2 percent. EBITA amounted to MSEK 39.1 (54.7) for the nine-month period. The EBITA margin was 11.4 (17.1) percent. Net sales for the third quarter amounted to MSEK 104 (100). Adjusted for changes in foreign exchange rates, revenue decreased 4 percent. EBITA amounted to MSEK 2.9 (8.3) in the third quarter. The EBITA margin was 2.8 (8.3) percent. BTS Europe’s revenue decline was caused by a combina- tion of one large project being cancelled and other deals being delayed. BTS Europe has won deals in infrastructure, pharma and financial services industries. BTS Europe lacked enough new project wins in the second quarter to make up for the one large project being cancelled. Deal flow has increased for BTS Europe in the third quarter, however the time it takes to win and be awarded work, as well as project delays, continue. We expect these market difficulties to continue during the fourth quarter. The decline in EBITA is predominantly explained by a shift in service mix and temporarily higher people costs. The undertaken workforce planning and efficiency initiatives will start to take effect in the fourth quarter 2023. BTS Other markets Net sales for BTS Other markets amounted to MSEK 514 (466) for the nine-month period. Adjusted for changes in foreign exchange rates, revenue increased 6 percent. EBITA amounted to MSEK 57.7 (51.3) for the nine-month period. The EBITA margin was 11.2 (11.0) percent. Net sales for the third quarter amounted to MSEK 176 (167). Adjusted for changes in foreign exchange rates, revenue increased 3 percent. EBITA amounted to MSEK 20.4 (23.8) in the third quarter. The EBITA margin was 11.6 (14.2) percent. BTS Other markets’ reduction in EBITA and EBITA margin was due to some one-off costs, as a part of the operational efficiencies drive. The cost base is being constantly adjusted and worked on and is kept flat after the efficiency measures. The efficiency measures combined with improved growth should yield a higher margin in the last quarter of the year. APG Net sales for APG amounted to MSEK 111 (120) for the nine-month period. Adjusted for changes in foreign exchange rates, revenue decreased 13 percent. EBITA amounted to MSEK –0.3 (2.4) for the nine-month period. The EBITA margin was –0.3 (2.0) percent. Net sales for the third quarter amounted to MSEK 39 (42). Adjusted for changes in foreign exchange rates, revenue decreased 10 percent. EBITA amounted to MSEK 0.1 (0.3) in the third quarter. EBITA margin was 0.4 (0.8) percent. North America’s market delays and conservatism continued to have a negative impact on APG with their average deal sizes smaller than normal and extended decision-making processes. The negative EBITA is due to the revenue decline. 6 | BTS Interim Report January 1–September 30, 2023 ===== SIDA 7 ===== BTS’S OFFICES AROUND THE WORLD Sao Paulo Phoenix Mexico City Stockholm Amsterdam Mumbai (2) Dubai London Portsmouth Paris St. Gallen Bilbao Madrid Barcelona Milan (2) Johannesburg Seoul Tokyo Shanghai Taipei Bangkok Kuala Lumpur Singapore Jakarta Melbourne Sydney Cologne San Francisco San Rafael Buenos Aires Toronto New York Philadelphia Chicago OTHER INFORMATION Financial position BTS’s operating cash flow normally has relatively sub- stantial seasonal fluctuations, with a weaker cash flow in the first half of the year and a stronger cashflow in the second half. The cash flow from operating activities for the nine-month period amounted to MSEK –59 (12). The cash flow before changes in working capital amounted to MSEK 198 (247) for the nine-month period, where the weaker cash flow compared to previous year pertained exclusively to the lower result during the nine-month period and to an increase in paid taxes. The cash flow from changes in working capital amounted to MSEK –258 (–235) for the nine-month period, where the weaker cash flow was attributable to a larger reduction in current liabilities in the first quarter 2023, compared to the same period previous year. BTS’s cash flow from operating activities for the third quarter amounted to MSEK 40 (76). The cash flow before changes in working capital amounted to MSEK 49 (69), and the decrease is explained by the lower result during the quarter. The cash flow from changes in working capital amounted to MSEK –9 (7), and the decrease is due to an increase in working capital tied-up, arising from the fact that a relatively large share of deliveries and invoicing took place during the last part of the quarter. Available cash and cash equivalents amounted to MSEK 396 (517) at the end of the period. The company’s interest-bearing loans amounted to MSEK 284 (260) at the end of the period. BTS’s equity ratio was 47 (47) percent at the end of the period. The company had no conversion loans outstanding at the balance sheet date. Employees As of September 30, 2023, the number of employees at BTS was 1,123 (1,165). Compared to the end of the second quarter the total number of employees decreased by 34 people, as a result of workforce planning initiatives. The average number of employees for the nine-month period was 1,162 (1,114). BTS Interim Report January 1–September 30, 2023 | 7 ===== SIDA 8 ===== Financial calendar Year-end report Jan–Dec 2023 February 22, 2024 Interim report Jan–Mar 2024 May 3, 2024 Stockholm, November 10, 2023 Jessica Skon CEO This report has not been reviewed by BTS’s auditors. Contact information Jessica Skon CEO Tel: +46 8 587 070 00 Stefan Brown CFO Tel: +46 8 587 070 62 Michael Wallin Head of Investor Tel: +46 8 587 070 02 Relations Mobile: +46 70 878 80 19 For further information, visit www.bts.com BTS Group AB (publ) Grevgatan 34 SE-114 53 Stockholm SWEDEN Tel: +46 8 587 070 00 Company registration number: 556566-7119 Parent company The Parent company’s net sales during the nine-month period amounted to MSEK 3.0 (3.3) and profit before tax totaled MSEK 33.2 (30.8). Cash and cash equivalents amounted to MSEK 1.0 (0.7). Events after the end of the period No significant events occurred after the close of the period. Risks and uncertainties The Group’s material risks and uncertainties include market and business risks, operational risks and financial risks. Business risks include significant exposure to individual customers or markets, as well as the negative influence of changes in the economy. Operational risks include dependence on key individuals, insufficient skills supply, and an inability to take advantage of intellectual property, as well as if BTS does not meet the stringent quality requirements of its clients. Financial risks mainly relate to foreign exchange rates and credit risks. The manage- ment of risks and uncertainties is described in the 2022 Annual report. Critical accounting estimates and assumptions In order to prepare the financial statements in conformity with IFRS, Corporate management is required to make estimates and assumptions that affect the application of accounting principles and the recognized amounts of assets, liabilities, revenue, and costs. Estimates and assumptions are based on historical experience, and a number of other factors that are regarded as reasonable under prevailing conditions. Actual outcome can deviate from these estimates and assumptions. Estimates and assumptions are reviewed regularly. Accounting principles This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as endorsed by the EU, RFR 1 Supplementary Accounting Rules for Groups, and the Swedish Annual Accounts Act. The Parent company’s statements have been prepared in accordance with RFR 2 Accounting for Legal Entities and the Annual Accounts Act. About BTS Group AB BTS is a global professional services firm headquartered in Stockholm, Sweden. BTS has about 1,100 professionals in 36 offices located on six continents. BTS competes in both talent and HR consulting as well as the traditional consulting markets. BTS’s services support a broad range of client challenges including top-to-bottom and on-demand leadership development, talent selection and readiness, strategy creation and strategy implementation, as well as culture and broad-scale change. For over 35 years, BTS has been focused on the people-side of change and uses proprietary simulation, learning, coaching, and assessment methodologies – to power better performance. We partner with nearly 1,200 organizations, including over 40 of the world’s 100 largest global corporations. BTS is a public company listed on the Nasdaq Stockholm exchange and trades under the symbol BTS B. For more information, please visit www.bts.com. 8 | BTS Interim Report January 1–September 30, 2023 ===== SIDA 9 ===== Group income statement, summary KSEK Jul–Sep 2023 Jul–Sep 2022 Jan–Sep 2023 Jan–Sep 2022 Oct–Sep 2022/23 Jan–Dec 2022 Net sales 633,383 617,074 1,914,916 1,804,688 2,639,862 2,529,634 Operating expenses –561,641 –533,368 –1,654,701 –1,516,586 –2,247,803 –2,109,688 Depreciation of property, plant and equipment –18,372 –17,960 –53,352 –54,245 –70,737 –71,630 EBITA 53,370 65,746 206,863 233,857 321,322 348,316 Amortization of intangible assets –15,752 –11,742 –41,084 –33,694 –52,455 –45,065 EBIT 37,618 54,004 165,779 200,164 268,866 303,251 Net financial items –5,709 –3,657 –13,455 –10,162 –17,173 –13,879 Associated company, profit after tax –482 –390 –39 –384 639 295 EBT 31,428 49,957 152,285 189,618 252,333 289,667 Estimated tax –9,743 –15,476 –47,208 –58,776 –79,694 –91,261 Net profit 21,685 34,481 105,076 130,842 172,639 198,405 Attributable to the shareholders of the parent company 21,685 34,481 105,076 130,842 172,639 198,405 Earnings per share, SEK 1) 1.12 1.78 5.42 6.75 8.91 10.24 Number of shares at end of the period 1) 19,396,819 19,374,347 19,396,819 19,374,347 19,396,819 19,374,347 Average number of shares 19,389,247 19,374,347 19,379,368 19,374,347 19,378,103 19,374,347 Dividend per share, SEK 5.40 1) Before and after dilution of shares. Group statement of comprehensive income KSEK Jul–Sep 2023 Jul–Sep 2022 Jan–Sep 2023 Jan–Sep 2022 Oct–Sep 2022/23 Jan–Dec 2022 Profit for the period 21,685 34,481 105,076 130,842 172,639 198,405 Items that will not be reclassified to profit or loss – – – – – – – – – – – – Items that may be reclassified to profit or loss Translation differences in equity –12,689 71,163 47,963 180,528 –7,989 124,576 Other comprehensive income for the period, net of tax –12,689 71,163 47,963 180,528 –7,989 124,576 Total comprehensive income for the period 8,996 105,644 153,039 311,370 164,650 322,981 attributable to the shareholders of the parent company 8,996 105,644 153,039 311,370 164,650 322,981 BTS Interim Report January 1–September 30, 2023 | 9 ===== SIDA 10 ===== Group balance sheet, summary KSEK 30 Sep 2023 30 Sep 2022 31 Dec 2022 Assets Goodwill 1,129,955 931,499 908,882 Other intangible assets 172,956 120,145 120,564 Tangible assets 146,578 188,417 186,405 Financial assets 28,889 24,453 27,682 Total non-current assets 1,478,379 1,264,514 1,243,533 Trade receivables 607,921 578,634 723,145 Other current assets 328,154 311,673 214,780 Cash and cash equivalents 396,215 517,041 577,061 Total current assets 1,332,291 1,407,348 1,514,986 TOTAL ASSETS 2,810,670 2,671,862 2,758,519 Equity and liabilities Equity 1,323,547 1,247,275 1,213,930 Non-current liabilities 582,974 554,643 508,196 Current liabilities 904,149 869,944 1,036,393 Total liabilities 1,487,122 1,424,587 1,544,589 TOTAL EQUITY AND LIABILITIES 2,810,670 2,671,862 2,758,519 Group cash flow statement, summary KSEK Jan–Sep 2023 Jan–Sep 2022 Jan–Dec 2022 Cash flow before changes in working capital 198,250 246,996 350,572 Cash flow from changes in working capital –257,574 –235,186 –151,558 Cash flow from operating activities –59,324 11,810 199,014 Acquisition related –70,088 –15,126 –14,968 Acquisition of assets –31,139 –39,822 –60,946 Cash flow from investing activities –101,227 –54,949 –75,914 Dividend –52,311 –46,498 –92,997 Net change, interest-bearing liabilities 63,023 –20,794 –60,204 Other 1) –41,141 –44,199 –55,080 Cash flow from financing activities –30,429 –111,491 –208,280 Cash flow for the period –190,980 –154,630 –85,181 Cash and cash equivalents, opening balance 577,061 594,435 594,435 Translation differences in cash and cash equivalents 10,134 77,236 67,807 Cash and cash equivalents, closing balance 396,215 517,041 577,061 1) Amortization of lease liabilities, according to IFRS 16. 10 | BTS Interim Report January 1–September 30, 2023 ===== SIDA 11 ===== Group changes in consolidated equity KSEK 30 Sep 2023 30 Sep 2022 31 Dec 2022 Opening balance 1 January 1,213,930 983,250 983,250 Dividend to shareholders –52,311 –46,498 –92,997 New issue 6,315 – – Other 2,574 –848 695 Total comprehensive income for the period 153,039 311,370 322,981 Closing balance 1,323,547 1,247,275 1,213,930 Parent company’s income statement, summary KSEK Jul–Sep 2023 Jul–Sep 2022 Jan–Sep 2023 Jan–Sep 2022 Oct–Sep 2022/23 Jan–Dec 2022 Net sales 1,395 935 2,995 3,265 3,990 4,260 Operating expenses –3,600 –2,762 –264 –6,111 3,091 –2,755 EBIT –2,205 –1,827 2,731 –2,846 7,081 1,505 Net financial items 5,807 –1,767 30,486 33,666 110,457 113,637 EBT 3,602 –3,593 33,217 30,821 117,539 115,142 Estimated tax – – – – –3,631 –3,631 Net profit 3,602 –3,593 33,217 30,821 113,908 111,512 Parent company’s balance sheet, summary KSEK 30 Sep 2023 30 Sep 2022 31 Dec 2022 Assets Financial assets 438,479 434,916 436,222 Other current assets 94,223 92,886 83,996 Cash and cash equivalents 956 654 685 Total assets 533,658 528,457 520,904 Equity and liabilities Equity 191,947 170,533 204,726 Non-current liabilities 132,776 158,963 132,776 Current liabilities 208,936 198,961 183,402 Total equity and liabilities 533,658 528,457 520,904 BTS Interim Report January 1–September 30, 2023 | 11 ===== SIDA 12 ===== Group consolidated key ratios KSEK Jul–Sep 2023 Jul–Sep 2022 Jan–Sep 2023 Jan–Sep 2022 Oct–Sep 2022/23 Jan–Dec 2022 Net sales 633,383 617,074 1,914,916 1,804,688 2,639,862 2,529,634 EBITA 53,370 65,746 206,863 233,857 321,322 348,316 EBITA margin, % 8.4 10.7 10.8 13.0 12.2 13.8 EBIT 37,618 54,004 165,779 200,164 268,866 303,251 EBIT margin, % 5.9 8.8 8.7 11.1 10.2 12.0 Net profit 21,685 34,481 105,076 130,842 172,639 198,405 Net profit margin, % 3.4 5.6 5.5 7.3 6.5 7.8 Operating capital 1) 1,211,013 857,527 Return on operating capital, % 26 36 Return on equity, % 14 18 Equity ratio, at end of the period, % 47 47 47 47 47 44 Cash flow for the period 4,251 37,615 –190,980 –154,630 –121,531 –85,181 Cash and cash equivalents, at end of the period 396,215 517,041 396,215 517,041 396,215 577,061 Average number of employees 1,141 1,150 1,162 1,114 1,165 1,129 Number of employees at the end of the period 1,123 1,165 1,123 1,165 1,123 1,180 Revenues for the year per employee 2,266 2,241 1) The calculation includes the item of non-interest-bearing liabilities as of September 30, 2023, amounting to KSEK 1,203 (1,165). Net sales according to business model MSEK Jan–Sep 2023 Jan–Sep 2022 BTS North America BTS Europe BTS Other markets APG Total BTS North America BTS Europe BTS Other markets APG Total Programs 564 227 364 84 1,240 516 204 343 90 1,154 Development 228 86 128 0 443 233 85 105 0 424 Licenses 132 26 11 27 196 141 26 11 29 207 Other revenue 22 4 11 0 37 10 4 6 0 20 TOTAL 946 344 514 111 1,915 900 319 466 120 1,805 12 | BTS Interim Report January 1–September 30, 2023 ===== SIDA 13 ===== DEFINITIONS Earnings per share Earnings attributable to the parent company’s shareholders divided by number of shares before dilution. EBITA Operating profit before amortization of intangible assets, financial items, and tax. EBITA margin EBITA as a percentage of net sales. EBIT Operating profit before financial items and tax. EBIT margin EBIT as a percentage of net sales. Net profit margin Net profit as a percentage of net sales. Operating capital Total balance sheet reduced by liquid funds and other interest-bearing assets and reduced by non-interest bearing liabilities. Return on operating capital EBIT as a percentage of average operating capital. Return on equity Net profit as a percentage of average equity. Equity ratio Equity as a percentage of the total balance sheet. ===== SIDA 14 ===== Sweden HEAD OFFICE Grevgatan 34 114 53 Stockholm Tel: +46 8 587 070 00 Argentina Reconquista 657 PB 3 CP1003 CABA. Buenos Aires Tel: +54 911 5795 5721 Australia Level 6 607 Bourke Street Melbourne VIC 3000 Tel: +61 3 7001 1811 Level 6 10 Barrack Street Sydney NSW 2000 Tel: +61 02 8243 0900 Brazil Rua Geraldo Flausino Gomes, 85, cj 42 04575-060 São Paulo – SP Tel: +55 (11) 5505 2070 Canada 460 Richmond Street W. Suite 700 Toronto, ON M5V 1Y1 Tel: +1 416 848 3744 China Suite 531, East Office Tower Shanghai Center 1376 West Nanjing Road Shanghai Tel: +86 21 6289 8688 France 57 Rue de Seine 75006 Paris Tel: +33 1 40 15 07 43 Germany Ritterstraße 12 D-50668 Cologne Tel: +49 221 270 70 763 India 1701, 17th Floor, DLH Park Near MTNL Staff quarters, S.V. Road, Goregaon (West). Mumbai - 400062 Tel: +91 22 6196 6800 10th Floor, Parinee Crescenzo, G block, Bandra Kurla Complex, Bandra East, Mumbai - 400051 Tel: +91 98 1993 4615 Indonesia Pondok Indah Office Tower 3, 17th Floor Jalan Sultan Iskandar Muda Kav V-TA, Pondok Indah Jakarta Selatan, 12310 Tel: +62 21 2953 8932 Italy Corso Venezia 7 20121 Milan Tel: +39 02 6611 6364 Viale Abruzzi, 13 20131 Milan Tel: +39 02 69015719 Japan TS Kojimachi Bldg. 3F 6-4-6 Kojimachi Chiyoda-ku Tokyo 102-0083 Tel: +81 (3) 6272 9973 Malaysia Suite 8 & 9 Level 23, NU Tower 2, Jalan Tun Sambanthan, KL Sentral, 50470 Kuala Lumpur Tel: +603-2727 1616 Mexico Edificio Torre Moliere Calle Moliere 13 – PH Col Chapultepec Polanco C.P. 11560 México, D.F. Tel: +52 (55) 52 81 69 72 The Netherlands Barbara Strozzilaan 201 1083 HN Amsterdam Tel: + 31 (0)20 615 15 14 Singapore 1 Finlayson Green Suite 16-01 Singapore 049246 Tel: +65 63043032 Spain Simon Bolivar 27-1, Office No. 4 48013 Bilbao Tel: +34 94 423 5594 Paseo de la Castellana 91 5th Floor 28046 Madrid Tel: +34 91 417 5327 Netmind SL. Carrer dels Almogàvers 123 08018 Barcelona Tel: +34 93 304 1720 South Africa 267 West Avenue, 1st Floor Centurion 0046, Gauteng Tel: +27 12 663 6909 South Korea 2nd Floor, Golden Nugget 3 Itaewon-ro 55ga-gil Yongsan-gu, Seoul 04348 Tel: +82 2 539 7676 Switzerland Winkelriedstrasse 35 9000 St. Gallen Tel: +41 71 845 5936 Taiwan 5F., No. 129, Changchun Rd., Zhongshan Dist., Taipei City 104088 , Tel: +886 2 8712 3665 Thailand Phayathai Plaza Building, 4th Floor, Room D-128/38, Phayathai Road, Thungphayathai Sub-District, Ratchathewi District, Bangkok Metropolis 10400 Tel: +66 2 216 5974 UK 1 Queen Caroline Street London W6 9YN Tel: +44 20 7368 4180 Unit 307 East Wing Building 1000 Lakeside North Harbour Western Road Portsmouth PO6 3EN Tel: +44 2393 162686 United Arab Emirates Reef Tower, Cluster O, Jumeirah Lakes Towers 5th floor, unit 503, Dubai Tel: +971 4 589 6143 USA 200 South Wacker Drive Suite 850 Chicago, IL 60606 Tel: +1 312 509 4750 350 Fifth Avenue Suite 5020 New York, NY 10118 Tel: +1 646 378 3730 4742 N. 24th Street Suite 120 Phoenix, AZ 85016 Tel: +1 480 948 2777 222 Kearny Street Suite 1000 San Francisco, CA 94108 Tel: +1 415 362 4200 Rapid Learning Institute 435 Devon Park Drive, Bldg. 510, Wayne, PA 19087 Tel: (toll free) +1 877 792 2172 Advantage Performance Group 100 Smith Ranch Road, Suite 306 San Rafael, CA 94903 USA Tel: +1 800 494 6646 Strategy made