===== SIDA 1 ===== YEAR-END REPORT JANUARY – DECEMBEMBER 2023 October – December 2023 • Net sales amounted to SEK 162.5 (125.0) million, an increase of 30.0% year-on-year. In comparable currencies net sales increased by 27.2%. • Operating earnings amounted to SEK 29.4 (13.2) million, corresponding to an operating margin of 18.1% (10.6%). Excluding foreign exchange rate differences of SEK -0.1 (-2.7) million, operating earnings were SEK 29.5 (15.9) million. • Net income for the period was SEK 22.6 (9.9) million. • Earnings per share diluted was SEK 0.06 (0.03). • Total cash was SEK 4.2 (14.0) million. Excluding the cash impact from share-related transactions, the cash flow was SEK 17.5 (37.5) million. January – December 2023 • Net sales amounted to SEK 559.4 (475.1) million, an increase of 17.7% year-on-year. In comparable currencies net sales increased by 12.4%. • Operating earnings amounted to SEK 70.9 (60.5) million, corresponding to an operating margin of 12.7% (12.7%). Excluding foreign exchange rate differences of SEK -5.0 (-1.9) million, operating earnings were SEK 75.9 (62.4) million. • Net income for the period was SEK 60.1 (54.0) million. • Earnings per share diluted was SEK 0.17 (0.15). • Total cash was SEK -41.7 (-47.0) million. Excluding the cash impact from share-related transactions, the cash flow was SEK 0.9 (51.3) million. FINANCIAL HIGHLIGHTS For definitions and calculation of KPI’s, see pages 15-19. Net Insight AB (publ) corp.id.no. 556533–4397 SEK millions 2023 2022 Change 2023 2022 Change Net sales 162.5 125.0 30.0% 559.4 475.1 17.7% Operating earnings 29.4 13.2 123.1% 70.9 60.5 17.2% Operating margin 18.1% 10.6% 12.7% 12.7% EBITDA 46.2 28.7 60.9% 142.5 122.7 16.2% EBITDA margin 28.4% 23.0% 25.5% 25.8% EBITDAC 21.7 4.1 431.4% 49.1 35.1 40.0% EBITDAC margin 13.4% 3.3% 8.8% 7.4% Net Income 22.6 9.9 129.0% 60.1 54.0 11.3% Net margin 13.9% 7.9% 10.7% 11.4% Total cash flow 4.2 14.0 -41.7 -47.0 Oct-Dec Jan-Dec Q4 in brief • Strongest quarter in the company’s history concludes a record year • Product launches throughout the year resulting in strong growth • Framework agreement signed with Teracom for time synchronization of critical mobile networks • Expanded collaboration with a major American operator in time synchronization ===== SIDA 2 ===== 2 | Net Insight CEO statement Record quarter concludes 2023 The fourth quarter was the strongest in the company's history. The long-term trend of improved growth and profitability is a result of many strategic initiatives, where two important components are a stronger product portfolio and expanded expertise, focus ing on the growth areas of IP and cloud. Key advancements within time synchronization included product launch, a new framework agreement with Teracom, and the initiation of standardization for our synchronization technology. Despite an ongoing challenging market within the media industry, the technology transformation continues to create an underlying investment need among our customers. The shift towards IP and cloud brings both technical advantages and increased cost-effectiveness. The investments in product development within IP and cloud that we have made in recent years have resulted in us expanding our offering to existing customers and attracting new customers, which contributed to the strong growth. In the quarter, we have seen particularly strong development in the EMEA region, driven by several major deals. Revenue in the fourth quarter amounted to SEK 162.5 million, which is an increase of 30.0% compared to the same period the previous year (currency-adjusted 27.2%). The gross margin for the quarter was 63.1% (62.1%). Operating profit for the quarter amounted to SEK 29.4 (13.2) million. The increase compared to the comparative period was largely driven by the strong growth. Revenue for the full year 2023 amounted to SEK 559.4 million, an increase of 17.7% year-on- year, surpassing our long-term goal of average growth above 15%. The operating margin (EBIT%) was 12.7% for the full year 2023, and 18.1% in Q4, compared to our long-term goal of a 20% operating margin by 2027. We maintained a high investment pace throughout the year, in line with our strategy for long-term growth and increased profitability. A reliable partner in the ongoing technological transformation of the market We continued to develop and enhance our media solutions throughout the year. Our extensive product portfolio now supports even more industry standards and protocols, and our open approach to technology and our new software solutions enables customers to maximize their existing infrastructure investments while seamlessly integrating new features. We also strengthened our expertise in IP and cloud and deepened our collaboration with new and existing customers and partners, which resulted in an increased average order value and more stable sales. Successful rollout of our new time synchronization solution Zyntai. We are proud to announce the commercial launch of our time synchronization solution, Zyntai. The orderbook increased from SEK 180 million to SEK 195 million in the quarter, and deliveries will gradually take place as customers expand and upgrade their networks. During the quarter, we also signed a framework agreement with Teracom with a project value of over SEK 10 million for 2023 and 2024. We expanded our collaboration with a major US operator, who is expanding their network after successful testing. The recently initiated standardization of our time synchronization technology marks an important milestone for us, as it creates increased reliability for our customers. With significant progress in both media and time synchronization, we are determined to continue executing our strategy with full force. After a highly successful quarter and year, we are now eagerly looking forward to 2024. Crister Fritzson, CEO Solna, February 16, 2024 ”The strongest quarter in the company’s history concludes a record year.” ===== SIDA 3 ===== 3 | Net Insight REVENUES October-December Net sales in the fourth quarter of 2023 were SEK 162.5 (125.0) million, an increase of 30.0%. In comparable currencies, sales increased by 27.2%. Despite continued macroeconomic uncertainty, customers' willingness to invest has remained good. The ongoing transformation in the media market involving a move towards IP and the cloud means both technical advantages and increased cost efficiency, which in turn creates investment needs for our customers. The growth in the media business in the fourth quarter amounted to 42.2% year-on-year. All regions show growth compared to the previous year, but most of the increase is driven by strong sales in the EMEA region with a number of large deals. The long unbroken growth trend (13th consecutive quarter of growth) is a result of recent years' investments in product development and competence, which strengthened our offer and meant both new customers and expanded business with existing customers. Revenues from time synchronization for 5G and critical networks amounted to SEK 8.7 million in the quarter, compared to SEK 16.9 million the previous year. The previous year's fourth quarter included higher revenues linked to delivery of the initial time synchronization product. The new synchronization product Zyntai has been launched during the quarter and the first deliveries have been completed, which also means that the NRE (non-recurring engineering) fee linked to the development of this product has been reduced compared to the previous year. The orderbook increased from SEK 180 million to over SEK 195 million in the quarter, and deliveries will gradually take place as customers expand and upgrade their networks. Initially, we focus on telecom operators who use the product for time synchronization of 5G networks, but we also see a need and an interest for our time synchronization solution among customers with other critical networks. January-December Net sales for 2023 amounted to SEK 559.4 (475.1) million, an increase of 17.7%. In comparable currencies, sales increased by 12.4%. During 2023, we have seen continued good growth which accelerated during the second half of the year. As previously mentioned, the ongoing transformation in the media market has continued to create a need for investment among our customers, which has formed the basis for growth. Investments in product development in recent years have resulted in a series of launches of new and expanded functionality during the year, which strengthened our offer and increased our competitiveness. In combination with increased local presence, this has meant an increased number of new customers as well as deepened collaborations and expanded business with existing customers. Growth within the media business during 2023 amounted to 23.2% year-on-year. Revenue from time synchronization for 5G and critical networks during 2023 amounted to SEK 34.8 million, compared to SEK 49.2 million the previous year. The decrease in sales compared to the previous year is a consequence of the decrease in sales of the previous version of the synchronization product as the launch of the new product approached (which took place at the end of 2023). The company has no direct seasonal variation, however there is a certain variation in revenue between quarters due to the concentration of larger deals in certain quarters. EARNINGS October-December Gross profit for the third quarter was SEK 102.6 (77.6) million, an increase by 32.2%. The increase is primarily driven by the increased revenue, but also by a slightly increased gross margin. Gross profit included amortization of capitalized development expenditure of SEK -12,9 (-11.9) million. Gross margin excluding and including amortization of capitalized development expenditure was 71.1% (71.6%) and 63.1% (62.1%) respectively. The gross margin is in line with the previous year despite cost increases and increased amortization of capitalized development expenditures. Increased support revenue as well as increased software content in the products, thus increased license revenue, contribute to maintaining and strengthening the margin. Operating expenses in the fourth quarter of SEK -72.3 (-61.6) million, an increase of 17.3% year-on-year. The increase is driven by strengthening of the organization (primarily in time synchronization). The increase is also due to cost increases driven by inflation, increased sales costs linked to the increased sales and the weakening of the Swedish Krona. Operating 300 350 400 450 500 550 600 0 30 60 90 120 150 180 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 MSEK Net sales Net sales Net sales rolling 4 quarters -5% 0% 5% 10% 15% 20% -10 0 10 20 30 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 MSEK Earnings trend Operating earnings Operating margin rolling 4 quarters -10% -5% 0% 5% 10% 15% 20% 25% 30% -10% -5% 0% 5% 10% 15% 20% 25% 30% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 Target follow-up Organic growth target R4Q (Target 15%) Operating margin R4Q (Target 20%) * an organic average annual growth of at least 15% * an operating margin (EBIT%) that within the period will reach 20% Financial targets 2023-2027: ===== SIDA 4 ===== 4 | Net Insight costs in the quarter are also affected by costs related to the implementation of a new ERP system. Sales and marketing expenses were SEK -40,3 (-35,3) million, and administration expenses to SEK -16.6 (-13.4) million. Development expenses were SEK -15.4 (-12.9) million and the total development expenditures, i.e., before capitalization, were SEK -39.9 (-37.6) million. The increase in sales and marketing costs relates to building up the organization for the offer within time synchronization for 5G, increased costs for customer and marketing activities, and increased local presence. Part of the cost increase in the quarter is linked to increased variable compensation due to the high turnover which. The increase in administration costs is partly due to an ongoing project regarding the implementation of a new ERP system of SEK -0.7 (-) million, partly due to recruitment cost regarding new chairman of the board and CFO. Other operating income and expenses were SEK -0.8 (-2.8) million, of which foreign exchange rate differences of SEK -0.1 (-2.8) million. Operating earnings amounted to SEK 29.4 (13.2) million, corresponding to an operating margin of 18.1% (10.6%). Excluding foreign exchange rate differences of SEK -0.1 (-2.7) million, operating earnings were SEK 29.5 (15.9) million. See also table Material profit and loss items on page 19. EBITDA and EBITDAC (including reversal of capitalization of development expenditures) amounted to SEK 46.2 (28.7) million and SEK 21.7 (4.1) million, respectively, which corresponded to an EBITDA margin of 28.4% (23.0%) and an EBITDAC margin of 13.4% (3.3%). In the fourth quarter, net financial items amounted to SEK -0.5 (-0.4) million, of which foreign exchange rate differences of SEK -2.5 (-1.3) million and net interest income of SEK 2.0 (0.9) million. The increased net interest income is due to increased interest income due to higher market interest rates. Profit before tax was SEK 29.0 (12.8) million, and net income was SEK 22.6 (9.9) million, corresponding to a net margin of 13.9% (7.9%). January-December Gross profit for the first nine-month period was SEK 341.8 (297.7) million, an increase by 14.8%. The increase is due to the increased revenue and a favorable revenue mix, where a gradual increase of software-related revenue with a higher margin partially compensates for increased costs for components etc. Gross profit included amortization of capitalized development expenditure of SEK -55.1 (-46.2) million. Gross margin excluding and including amortization of capitalized development expenditure was 71.0% (72.4%) and 61.1% (62.7%) respectively. The increase in license and support revenue during 2023 has not fully compensated for lower event-base services revenue compared to the previous year. Operating expenses were SEK -266,4 (-234,2) million, an increase of 13.8% year-on-year. The increase includes cost increases driven by e.g. inflation, a strengthening of the organization, increased marketing-related costs, implementation of a new ERP system and the weakening of the Swedish Krona against the USD. Last year’s operating expenses included costs for restructuring of SEK -1.2 million. Sales and marketing expenses were SEK -152.1 (-130.0) million, and administration expenses to SEK -62.4 (-52.8) million. Development expenses were SEK -51.8 (-51.4) million and the total development expenditure, i.e., before capitalization, were SEK -145.2 (-139.0) million. The increase in sales and marketing costs as well as development expenditure relates primarily to building up the organization for the offer within time synchronization as well as increased costs for customer and marketing activities. The sales and marketing costs are also affected by a negative currency effect as a significant part of these costs are in USD. The increase in administration costs is attributable to a certain strengthening of central functions to ensure continued growth and to the replacement of ERP systems of SEK -3.3 (-) million. Other operating income and expenses were SEK -4.5 (-3.0) million, of which foreign exchange rate differences of SEK -5.0 (-1.9) million. During the year, the parent company received a government electricity subsidy of SEK 0.6 million (-). Last year included impairment of development projects of SEK -1.5 million Operating earnings amounted to SEK 70.9 (60.5) million, corresponding to an operating margin of 12.7% (12.7%). Excluding foreign exchange rate differences of SEK -5.0 (-1.9) million and items affecting comparability of SEK 0.6 (-2.6), operating earnings were SEK 75.3 (65.0) million. See also table Material profit and loss items on page 19. ===== SIDA 5 ===== 5 | Net Insight EBITDA and EBITDAC (including reversal of capitalization of development expenditures) amounted to SEK 142.5 (122.7) million and SEK 49.1 (35.1) million, respectively, which corresponded to an EBITDA margin of 25.5% (25.8%) and an EBITDAC margin of 8.8% (7.4). Net financial items amounted to SEK 6.5 (8.4) million, of which foreign exchange rate differences of SEK -0.8 (6.9) million and net interest income of SEK 7.2 (1.4) million. The increased net interest income is due to increased interest income due to higher market interest rates. Profit before tax was SEK 77.4 (68.9) million, and net income was SEK 60.1 (54.0) million, corresponding to a net margin of 10.7% (11.4%). INVESTMENTS The investments in the fourth quarter were SEK 25.1 (25.4) million, of which SEK 24.5 (24.6) million related to capitalization of expenditure for development. The investments in 2023 were SEK 93.4 (87.6) million, of which SEK 93.4 (87.6) million related to capitalization of expenditure for development. The increase in capitalized development expenditure relates to the investment in 5G time synchronization. Depreciation and amortization in the fourth quarter totaled SEK -16.8 (-15.5) million, of which SEK -12.9 (-11.9) million related to amortization of capitalized expenditure for development. Depreciation and amortization in 2023 totaled SEK -71.6 (-62.2) million, of which SEK -55.1 (-46.2) million related to amortization of capitalized expenditure for development. Launches of new products have increased the amortization. The previous year also included an impairment of development projects during the third quarter, as a consequence of closer integration of the Nimbra and Aperi platforms, of -1.5 MSEK. Net value of capitalized expenditure for development was SEK 236.5 million at end of the year, against SEK 198.2 million as of December 31, 2022. CASH FLOW AND FINANCIAL POSITION Cash flow from operating activities in the fourth quarter amounted to SEK 45.2 (65.2) million and for 2023 to SEK 107.3 (148.8) million. The increase in inventory during 2022 and the first six-month period of 2023 is a consequence of securing components with longer foresight than normal due to the prevailing component shortage. The continued growth, especially in the APAC region, has led to increased accounts receivable in 2022 and 2023. During the first quarter 2022, SEK 28.2 million was received for the second half the NRE (non-recurring engineering fee) from the 5G time synchronization business with Türk Telekom, a prepaid revenue that was recognized as revenue during the development of the new products for 5G synchronization until the launch in Q4 2023. The total cash flow for the fourth quarter amounted to SEK 4.2 (14.0) million and for 2023 to SEK -41.7 (-47.0) million. The increased investments in development projects 2023, compared to the previous year, are offset by a reduced repurchase of own shares and exercised warrants. Excluding the cash impact from share-related transactions (repurchase of own shares and exercised warrants, see page 19), cash flow for the fourth quarter was SEK 17.5 (37.5) million and for 2023 SEK 0.9 (51.2) million. More information about the buyback program and warrants can be found on page 12. Cash and cash equivalents were SEK 266.4 million at year-end, against SEK 308.3 million as of 31 December 2022. Key Ratios 2023 2022 2023 2022 Net sales, SEK millions 162.5 125.0 559.4 475.1 Net sales YoY, change in % 30.0% 15.9% 17.7% 24.8% Gross earnings 102.6 77.6 341.8 297.7 Gross margin 63.1% 62.1% 61.1% 62.7% Operating earnings 29.4 13.2 70.9 60.5 Operating margin 18.1% 10.6% 12.7% 12.7% EBITDA 46.2 28.7 142.5 122.7 EBITDA margin 28.4% 23.0% 25.5% 25.8% EBITDAC 21.7 4.1 49.1 35.1 EBITDAC margin 13.4% 3.3% 8.8% 7.4% Oct-Dec Jan-Dec ===== SIDA 6 ===== 6 | Net Insight The remaining tax loss carryforwards of SEK 12.9 million that the group companies had as of December 31, 2022, has been utilized during the year. For more information, see the section Tax on page 12. Equity was SEK 622.2 million at year-end, against SEK 605.1 million as of 31 December 2022. The equity/assets ratio was 74.2%, against 71.6% as of 31 December 2022. That equity did not increase in line with the earnings during the year is due to the repurchase of own shares. For information about warrants, share repurchases and share structure, see the section Contributed equity on page 12. EMPLOYEES The average number of employees and consultants at Net Insight during the fourth quarter and for the year was 196 (183) and 191 (176), respectively, of which 160 (149) and 158 (143), respectively, in the parent company Net Insight AB (publ.). The increase is primarily attributable to the investment in time synchronization. CFO Joakim Schedvins who, as previously communicated, is leaving Net Insight during the first quarter of 2024. Annika Muskantor will hold the position of CFO and be member of the management team from March 13. PARENT COMPANY Net sales for the parent company were SEK 162.5 (124.8) million in the fourth quarter, and net income was SEK 21.9 (10.3) million. In the fourth quarter, intra-group sales totaled SEK 0.0 (0.0) million, and intra-group purchases SEK -23.5 (-21.2) million. Last year, the net financials included a dividend from a subsidiary of SEK 3.1 million. Net sales for the parent company were SEK 559.4 (474.7) million in 2023, and net income was SEK 56.9 (49.7) million. In 2023, intra-group sales totaled SEK 0.0 (0.0) million, and intra- group purchases SEK -86.0 (-71.5) million. Previous years’ net financials included a capital loss of -4.3 MSEK, when consolidating of the number of legal entities, and a dividend from a subsidiary of SEK 3.1 million Progress in the parent company during the year and its financial position largely shadowed group progress as indicated above (except for intra-group transactions). RISK AND SENSITIVITY ANALYSIS Net Insight’s operations and results of operations are affected by a number of external and internal factors. The company conducts a continuous process to identify all risks present, and to assess how each risk should be managed. Primarily, the risks the company is exposed to are market-related risks (including competition, technological progress, and political risks), operational risks (including product liability, intellectual property, disputes, customer dependency and contract risks) as well as financial and sustainability-related risks. The situation of component shortages that arose in connection with the pandemic has in recent years meant increased uncertainty. During 2022 and 2023, we worked to manage the shortage situation and in the second half of 2023 we have noted a gradual improvement in the situation The war in Ukraine that began in the first quarter 2022 has contributed to increased uncertainty and risk associated with operations and the implementation of events, especially in Ukraine, Russia, and Belarus. The company's exposure to these markets is extremely limited and the decision to comply with the sanctions in force at the time of reporting is therefore not considered to have any material impact on the company's operations, assets, or earnings. However, how the war develops is difficult to predict and the company makes ongoing evaluations of the need to take action. The ongoing conflict in the Middle East has generally meant increased uncertainty, but we currently have difficulty assessing the possible impact this may have on, for example, access and prices of components. However, the company's direct exposure to this region is limited. Except for this, no additional critical risks and uncertainty factors, other than those reviewed in the Annual Report for 2022, arose during 2023 or are anticipated in 2024. The risks and uncertainty factors are essentially the same for the parent company and the group as a whole. For a comprehensive review of the company’s risk and sensitivity analysis, and its risk management process, see pages 49-51, 54-55 and 72-74 of the Annual Report for 2022. ===== SIDA 7 ===== 7 | Net Insight CONSOLIDATED INCOME STATEMENT, IN SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME SEK thousands 2023 2022 2023 2022 Net sales 162,474 125,017 559,368 475,118 Cost of sales -59,922 -47,441 -217,579 -177,454 Gross earnings 102,552 77,576 341,789 297,664 Sales and marketing expenses -40,310 -35,257 -152,106 -130,021 Administration expenses -16,619 -13,445 -62,431 -52,753 Development expenses -15,382 -12,922 -51,815 -51,379 Other operating income and expenses -808 -2,758 -4,545 -3,009 Operating earnings 29,433 13,194 70,892 60,502 Net financial items -452 -402 6,486 8,380 Profit before tax 28,981 12,792 77,378 68,882 Tax -6,374 -2,921 -17,276 -14,866 Net Income 22,607 9,871 60,102 54,016 Net income for the period attributable to the shareholders of the parent company 22,607 9,871 60,102 54,016 Oct-Dec Jan-Dec 2023 2022 2023 2022 Earnings per share -Basic, SEK 0.06 0.03 0.17 0.15 -Diluted, SEK 0.06 0.03 0.17 0.15 Average number of outstanding shares in thousands -Basic 348,580 359,326 353,291 367,083 -Diluted 349,905 364,136 356,334 370,840 Earnings per share, based on net income attributable to the parent company's shareholders during the period Oct-Dec Jan-Dec SEK thousands 2023 2022 2023 2022 Net income 22,607 9,871 60,102 54,016 Other comprehensive income Translation differences -916 -385 -494 1,321 Total other comprehensive income, after tax -916 -385 -494 1,321 Total other comprehensive income for the period 21,691 9,486 59,608 55,337 parent company 21,691 9,486 59,608 55,337 Oct-Dec Jan-Dec ===== SIDA 8 ===== 8 | Net Insight CONSOLIDATED BALANCE SHEET, IN SUMMARY SEK thousands 31 Dec 2023 30 Sep 2023 31 Dec 2022 ASSETS Non-current assets Capitalized expenditure for development 236,461 224,853 198,200 Goodwill 38,751 38,751 38,751 Other intangible assets 1,057 1,208 1,673 Right-of-use assets 24,844 25,869 32,129 Equipment 12,687 13,446 16,095 Deferred tax asset 2,576 2,717 3,719 Deposits 5,123 5,137 4,902 Total non-current assets 321,499 311,981 295,469 Current assets Inventories 88,638 95,369 84,249 Accounts receivable 139,707 140,377 129,415 Other receivables 22,150 28,817 27,716 Cash and cash equivalents 266,404 262,669 308,347 Total current assets 516,899 527,232 549,727 TOTAL ASSETS 838,398 839,213 845,196 EQUITY AND LIABILITIES Equity attributable to parent company's shareholders Share capital 14,362 14,326 14,750 Other paid-in capital 1,200,443 1,198,689 1,192,727 Translation reserve 1,010 1,924 1,504 Accumulated deficit -593,656 -601,121 -603,892 Total shareholders' equity 622,159 613,818 605,089 Non-current liabilities Lease liabilities 12,185 14,011 20,733 Other liabilities 51,582 59,136 61,307 Total non-current liabilities 63,767 73,147 82,040 Current liabilities Lease liabilities 12,105 11,584 11,434 Accounts payable 38,130 38,355 35,899 Other liabilities 102,237 102,309 110,734 Total current liabilities 152,472 152,248 158,067 TOTAL EQUITY AND LIABILITIES 838,398 839,213 845,196 ===== SIDA 9 ===== 9 | Net Insight CHANGES IN CONSOLIDATED EQUITY, IN SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS SEK thousands Share capital Other paid-in capital Translation reserve Accumulated deficit Total shareholders' equity January 1, 2022 15,597 1,192,727 183 -561,979 646,528 Transfer of quota value upon cancellation of repurchased shares -847 847 - Repurchase of own shares - - -98,336 -98,336 Warrants issued - - - 1,561 1,561 Total comprehensive income - - 1,321 54,016 55,337 December 31, 2022 14,750 1,192,727 1,504 -603,892 605,089 January 1, 2023 14,750 1,192,727 1,504 -603,892 605,089 Transfer of quota value upon cancellation of repurchased shares -511 - - 511 - Exercised warrants 122 7,716 - - 7,838 Repurchase of own shares - - - -50,376 -50,376 Total comprehensive income - - -494 60,102 59,608 December 31, 2023 14,362 1,200,443 1,010 -593,656 622,159 Attributable to parent company's shareholders SEK thousands 2023 2022 2023 2022 Operating activities Operating earnings 29,433 13,194 70,892 60,502 Depreciation, amortization & impairment 16,770 15,527 71,625 62,157 Other items not affecting liquidity 4,327 1,701 10,883 5,202 Sub-total 50,530 30,422 153,400 127,861 Interest received 2,230 1,150 8,208 2,445 Interest paid -226 -259 -960 -1,009 Other financial income and expenses -2,456 -1,293 -762 6,944 Income tax paid -4,838 -280 -9,708 -1,378 Cash flow from operating activities before changes in working capital 45,240 29,740 150,178 134,863 Changes in working capital Increase-/decrease+ in inventories 2,352 -9,030 -13,684 -33,830 Increase-/decrease+ in receivables 7,590 17,583 -4,990 -11,175 Increase+/decrease- in liabilities -9,960 26,891 -24,184 58,971 Total changes in working capital -18 35,444 -42,858 13,966 Cash flow from operating activities 45,222 65,184 107,320 148,829 Investment activities Capitalized expenditure -24,507 -24,636 -93,402 -87,573 Investment in intangible assets -65 -273 -65 -575 Investment in tangible assets -525 -498 -2,597 -2,596 Increase-/decrease+ in financial assets, net - -51 -227 -152 Cash flow from investment activities -25,097 -25,458 -96,291 -90,896 Financing activities Amortization leasing -2,576 -2,363 -10,177 -8,203 Exercised warrants 1,789 - 7,838 - Warrant premiums paid - 104 - 1,561 Repurchase of own shares -15,141 -23,512 -50,376 -98,336 Cash flow from financing activities -15,928 -25,771 -52,715 -104,978 Net change in cash and cash equivalents 4,197 13,955 -41,686 -47,045 Exchange differences in cash and cash equivalents -462 -111 -257 529 Cash and cash equivalents at the beginning of the period 262,669 294,503 308,347 354,863 Cash and cash equivalents at the end of the period 266,404 308,347 266,404 308,347 Oct-Dec Jan-Dec ===== SIDA 10 ===== 10 | Net Insight DISAGGREGATION OF REVENUE *) Of which NRE fee; SEK 2.2 (7.1) million Oct-Dec, SEK 23.4 (28.2) million. Jan-Dec. FINANCIAL ASSETS AND LIABILITIES Carrying value of account receivables, other receivables, cash and cash equivalents, account payables and other liabilities makes a reasonable approximation of fair value. Financial instruments in tier 2 The fair value of derivative instruments is measured using exchange rates of currency forwards on the reporting date. SEK thousands 2023 2022 2023 2022 Net sales by product group Hardware 59,546 63,058 233,449 226,173 Software licenses 68,192 22,155 166,306 85,572 Support and Services* 34,736 39,804 159,613 163,373 Total 162,474 125,017 559,368 475,118 Net sales by region EMEA 96,204 73,986 313,963 264,442 AM 49,430 38,580 158,514 161,706 APAC 16,840 12,451 86,890 48,970 Total 162,474 125,017 559,368 475,118 Timing of revenue recognition Products and services transferred at a point in time 122,220 81,644 384,793 302,088 Products and services transferred over time* 40,254 43,373 174,575 173,030 Total 162,474 125,017 559,368 475,118 Oct-Dec Jan-Dec Group's financial instruments by category - Assets SEK thousands Value-tier Measured at amortized cost Measured at fair value through profit or loss Value-tier Measured at amortized cost Measured at fair value through profit or loss Assets in Balance Sheet Derivative instruments 2 682 2 - Accounts receivable and other receivables, excluding non-financial assets 148,828 140,200 Cash and cash equivalents 266,404 308,347 Total 415,232 682 448,547 - Dec 31, 2023 31 Dec 2022 Group's financial instruments by category - Liabilities SEK thousands Value-tier Measured at amortized cost Measured at fair value through profit or loss Value-tier Measured at amortized cost Measured at fair value through profit or loss Liabilities in Balance Sheet Derivative instruments 2 2 787 Accounts payable and other liabilities, excluding non- financial liabilities 45,974 47,368 Lease liabilities 24,290 32,167 Total 70,264 - 79,535 787 Dec 31, 2023 31 Dec 2022 ===== SIDA 11 ===== 11 | Net Insight PARENT COMPANY INCOME STATEMENT, IN SUMMARY PARENT COMPANY BALANCE SHEET, IN SUMMARY SEK thousands 2023 2022 2023 2022 Net sales 162,474 124,781 559,368 474,707 Cost of sales -59,881 -48,005 -217,319 -177,684 Gross earnings 102,593 76,776 342,049 297,023 Sales and marketing expenses -41,790 -36,176 -156,167 -131,021 Administration expenses -16,501 -13,567 -62,136 -52,757 Development expenses -15,794 -13,970 -53,351 -52,536 Other income expenses -457 -3,741 -4,763 -5,438 Operating earnings 28,051 9,322 65,632 55,271 Net financial items -244 2,895 7,434 8,087 Profit/loss before tax 27,807 12,217 73,066 63,358 Tax -5,936 -1,931 -16,116 -13,693 Net income 21,871 10,286 56,950 49,665 Oct-Dec Jan-Dec SEK thousands 31 Dec 2023 31 Dec 2022 ASSETS Non-current assets Capitalized expenditure for development 236,461 198,200 Other intangible assets 1,057 1,673 Equipment 11,438 14,670 Participations in group companies 3,173 3,173 Deferred tax asset 1,044 2,657 Deposits 4,855 4,628 Total non-current assets 258,028 225,001 Current assets Inventories 88,638 84,249 Accounts receivable 140,467 130,180 Receivables from group companies 346 346 Other receivables 24,541 30,113 Cash and cash equivalents 258,014 300,860 Total current assets 512,006 545,748 TOTAL ASSETS 770,034 770,749 EQUITY AND LIABILITIES Equity Restricted equity 327,488 277,979 Non-restricted equity 249,485 284,581 Total equity 576,973 562,560 Non-current liabilities Other liabilities 50,269 60,557 Total non-current liabilities 50,269 60,557 Current liabilities Accounts payable 38,066 35,617 Liabilities to group companies 8,763 7,504 Other liabilities 95,963 104,511 Total current liabilities 142,792 147,632 TOTAL EQUITY AND LIABILITIES 770,034 770,749 ===== SIDA 12 ===== 12 | Net Insight ACCOUNTING POLICIES This Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable regulations of the Swedish Annual Accounts Act. The Interim Report of the parent company complies with chapter 9 of the Swedish Annual Accounts Act, Interim Financial Reporting, and RFR 2 Accounting for Legal Entities. Disclosures in accordance with IAS 34 are presented in the interim financial statements and the associated notes as well as elsewhere in the interim financial report. There are no new or amended International Financial Reporting Standards (IFRS) in 2023 that have had a material impact on the Company’s financial reporting. The company has changed the cash flow analysis so that it is based on the operating profit, as it is the performance measure that the company normally follows up the business from, both internally and externally. Except from stated above, the same accounting principles and basis of calculation as those used in the latest Annual Report have been applied to the group and parent company. For a description of these accounting principles, please refer to the Annual Report for 2022. The preparation of the Interim Report requires management to make judgements, estimates and assumptions that affect the company’s earnings and position and information presented generally. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. For a description of these estimates and assumptions, please refer to the Annual Report for 2022. Figures in brackets in this report refer to comparison with the corresponding period or date in the previous year, if not stated otherwise. Divergences due to rounding may occur in this report. Tax The group reported tax of total SEK -6.4 (-2.9) million for the period October–December 2023, corresponds to an effective tax rate of - 22.0 (-22.8) percent. The group reported tax of total SEK 17.3 (-14.9) million for the period January–September 2023, corresponds to an effective tax rate of -22.3 (-21.6) percent. The effective tax rate is affected by tax adjustments and the relative effects of foreign tax rates. The remaining tax loss carryforwards of SEK 12.9 million that the group companies had as of December 31, 2022, has been utilized during the year. Contributed equity The repurchase program, which was decided by the board with the support of a mandate from the 2022 AGM, ran during the period July 2022 to February 2023. Within the program, the parent company repurchased a total of 12,877,000 own B shares on Nasdaq Stockholm for SEK 70.1 million, including transaction costs, of which 1,297,000 more shares for SEK 8.5 million during the period January- February 2023. The 2023 AGM resolved to authorize the board of directors to resolve to repurchase, on one or several occasions until the next AGM, as many own shares as may be purchased without the company’s holding at any time exceeding ten per cent of the total number of shares in the company. Further, the AGM resolved to authorize the board of directors to resolve on one or several occasions until the next annual general meeting, to transfer (sell) own shares. At the Board meeting in June, the board of Directors of Net Insight AB decided to utilize the repurchase mandate given at the AGM in 2023. The repurchase program commenced on June 7, 2023, and will last until the next AGM and will amount to maximum SEK 50 million. During June-December 2023, the parent company repurchased 9,268,000 of its own B shares on Nasdaq Stockholm for SEK 41.9 million, including transaction costs. The 2023 AGM resolved that the company’s share capital shall be reduced by SEK 511,000 for allocation to unrestricted equity through cancellation of 12,775,000 own B shares held by the company. The cancellation was completed on August 11. At the end of the period, the parent company had a total of 9,370,000 of its own class B shares, at an average cost of SEK 4.54 per share and with a par value of SEK 0.04 per share. The shares are held as own shares. The parent company has the right to reissue these shares at a later date. In 2023, subscription for shares in long-term incentive programs, decided by the 2020 AGM (LTI 2020 series 1 and 2) were exercised. A total of 3,055,000 warrants have been issued in the program and each warrant entitles the holder to subscribe for one (1) B -share against a predetermined subscription price of SEK 2.80 and SEK 2.00, respectively. During June- December, 3,055,000 warrants were exercised, which resulted in the number of B shares and votes in Net Insight AB increasing by 3,055,000 and the share capital increasing by SEK 122,200. In total, the Company has two additional ongoing warrant programs (LTI 2022 in series 1 and 2) with a total of 1,805,000 warrants. When calculating earnings per share, a dilution effect arises when the average price for the period exceeds the exercise price for the warrants. For more information about the programs and the accounting principles, see Note 7 on page 82 in the 2022 Annual Report. All shares issued by the parent company were fully paid. TRANSACTIONS WITH RELATED PARTIES In 2023, the parent company hired a member of the management team’s related party company for consulting services. Charged fees during the year amounted to SEK 0.8 (-) million. AUDITORS’ REVIEW This Report has not been reviewed by the company’s auditors. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD No significant events occurred after the end of the reporting period. The division of shares A-shares B-shares Total A-shares B-shares Total Outstanding shares 1,000,000 348,668,009 349,668,009 1,000,000 356,178,009 357,178,009 Repurchased own shares - 9,370,000 9,370,000 - 11,580,000 11,580,000 Issued shares 1,000,000 358,038,009 359,038,009 1,000,000 367,758,009 368,758,009 31 Dec, 2023 31 Dec, 2022 ===== SIDA 13 ===== 13 | Net Insight THIS IS NET INSIGHT Business concept and model Net Insight is defining new ways to deliver media. Net Insight is driving the transformation of video networks with open IP, virtualized and cloud solutions that enable our customers to simply and cost- effectively create live experiences. With the product area Media Networks, Net Insight is opening up new routes for customers to produce and deliver content to viewers anywhere. Revenues are generated through sales of hardware and software solutions and services. The 5G synchronization product area enables cost-effective, more secure and faster roll-out of 5G networks or other critical networks. Strategy Net Insight wants to set the benchmark for media transport and help broadcasters, production companies, service providers and enterprises to transform their media businesses – enabling them to benefit from new software defined, virtual and distributed media workflows, without discarding their existing hardware investments. Net Insight wants to empower customers to work smarter through remote/distributed production and flexible networks. Net Insight is technology agnostic and has built the market’s most open and cloud-ready video centric media delivery platform, allowing customers to deliver content on any network, their way. The main strategic objective is to accelerate growth, in both existing and closely related market and customer segments. This will be achieved through a combination of leveraging our unique portfolio and our industry expertise, strengthened solutions competitiveness, and improved internal execution. Value creators The solutions are deployed by the world’s leading media brands to keep their mission-critical media networks running smoothly. New technology is enabling these players to adopt new, more cost- efficient and flexible ways to produce and deliver content. Net Insight can play an important role to support our customers making this gradual transition. Net Insight benefits from underlying market trends like the general increase in video traffic, live streaming and file-based transfers. Other trends supporting the company’s growth prospects include the broader coverage of live events, move towards remote production and increased use of Internet and cloud for media production and transport. Reporting dates Publishing of Annual report 2023 April 16, 2024 Interim report January – March April 23, 2024 Annual General Meeting May 7, 2024 Interim report January – June July 18, 2024 Interim report January – September November 7, 2024 Solna, Sweden, February 16, 2024 Crister Fritzson CEO This interim report has been prepared in Swedish and translated into English. In the event of any discrepancies between the Swedish interim report and the English translation the former shall have precedence. For more information, please contact Crister Fritzson, CEO, Net Insight AB (publ) Net Insight AB (publ), corp.id.no. 556533-4397 Phone: +46 (0)8-685 04 00 Box 1200, 171 23 Solna, Sweden Email: crister.fritzson@netinsight.net Phone: +46 (0)8 – 685 04 00 Joakim Schedvins, CFO, Net Insight AB (publ) www.netinsight.net Phone: +46 (0)8-685 04 00 Email: joakim.schedvins@netinsight.net This information is information that Net Insight AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 7:30 am CET on February 16, 2024. ===== SIDA 14 ===== 14 | Net Insight FINANCIAL INFORMATION SEK millions (if not defined differently) 2023 2022 2023 2022 Earnings Net sales 162.5 125.0 559.4 475.1 Gross earnings 102.6 77.6 341.8 297.7 Operating expenses 72.3 61.6 266.4 234.2 Total development expenditure 39.9 37.6 145.2 139.0 EBITDA 46.2 28.7 142.5 122.7 EBITDAC 21.7 4.1 49.1 35.1 Operating earnings 29.4 13.2 70.9 60.5 Profit before tax 29.0 12.8 77.4 68.9 Net income 22.6 9.9 60.1 54.0 Balance sheet and cash flow Cash and cash equivalents 266.4 308.3 266.4 308.3 Working capital 117.0 102.7 113.6 76.5 Total cash flow 4.2 14.0 -41.7 -47.0 The share Dividend per share, SEK - - - - Earnings per share, basic, SEK 0.06 0.03 0.17 0.15 Earnings per share, diluted, SEK 0.06 0.03 0.17 0.15 Cash flow per share, basic, SEK 0.01 0.04 -0.12 -0.13 Cash flow per share, diluted, SEK 0.01 0.04 -0.12 -0.13 Equity per share basic , SEK 1.78 1.68 1.76 1.65 Equity per share diluted, SEK 1.78 1.66 1.75 1.63 Average number of outstanding shares basic, thousands 348,580 359,326 353,291 367,083 Average number of outstanding shares diluted, thousands 349,905 364,136 356,334 370,840 Number of outstanding shares at the end of the period, basic, thousands 346,613 357,178 346,613 357,178 Number of outstanding shares at the end of the period, diluted, thousands 348,368 361,988 348,368 361,988 Share price at end of period, SEK 5.20 6.06 5.20 6.06 Employees and consultants Average number of employees and consultants 196 183 191 176 KPI Net sales YoY, change in % 30.0% 15.9% 17.7% 24.8% Gross margin 63.1% 62.1% 61.1% 62.7% Total development expenditure/Net sales 24.5% 30.0% 26.0% 29.2% Operating margin 18.1% 10.6% 12.7% 12.7% EBITDA margin 28.4% 23.0% 25.5% 25.8% EBITDAC margin 13.4% 3.3% 8.8% 7.4% Net margin 13.9% 7.9% 10.7% 11.4% Return on capital employed 8.0% 9.0% 8.0% 8.9% Equity/asset ratio 74.2% 71.6% 74.2% 71.6% Return on equity 9.7% 8.7% 9.8% 8.7% Oct-Dec Jan-Dec ===== SIDA 15 ===== 15 | Net Insight ALTERNATIVE PERFORMANCE MEASURES AND OTHER DEFINITIONS Non-IFRS financial measures are presented to enhance investors and management possibility to evaluate the ongoing operating results, to aid in forecasting future periods and to facilitate meaningful comparison of result between periods. The APMs in this report may differ from similar-titled measures used by other companies. The section has also been supplemented with some other definitions. Any key figures in text, diagrams or tables that include periods earlier than 1 April 2021, refer to continued operations, i.e. excluding the effect from divested operations. For more information, see interim reports and annual report for 2022. Calculation of performance measures not included in IFRS framework, and some other definitions. Performance measures Various types of performance measures and margin measures as a percentage of sales. Non-IFRS performance measures Description Reason for use of the measure Gross margin Gross earnings as a percentage of net sales. The gross margin is of major importance, showing the margin for covering the operating expenses., supplemented by the margin to cover the operating expenses as well as the cost of amortization of capitalized development expenditures. Gross margin excl. amortization of capitalized development Gross earnings excl. amortization of capitalized development as a percentage of net sales. Operating expenses Sales and marketing expenses, administration expenses and development expenses. Shows the company’s total operating expenses. Putting them in relation to net sales shows the company’s cost efficiency. Operating expenses/net sales Operating expenses as a percentage of net sales. Operating earnings (EBIT) Calculated as operating earnings before financial items and tax. Operating earnings provides an overall picture of earnings generated in the operating activities. Operating margin (EBIT%) Operating earnings as a percentage of net sales. The operating margin is a key measure together with sales growth and capital employed for monitoring value creation. Net sales YoY, change in % The relation between net sales for the period and the corresponding sales for the comparative period in previous year. The sales growth is a key measure together with operating margin and capital employed for monitoring value creation. Change in Net sales in comparable currencies The relation between the net sales for the period, recalculated using the foreign currency exchange rates from the comparative period, and the corresponding sales for the comparative period in previous year. Only sales from business combinations that has been part of the Group for the whole comparative period are recalculated. This measure is of major importance for management in its monitoring of underlying sales growth driven by changes in volume, price and product mix for comparable exchange rates between different periods. Net margin Net Income as a percentage of net sales. The net margin shows the remaining share of net sales after all the company’s costs have been deducted. Total development (R&D) expenditure Development expenses and capitalized expenditures for development. The measure is a good complement to development expenses, as it shows the company’s total expenditure in development. The development expenditures effect on income, financial position, and presentation in the statement of cashflow is affected by the periods level of capitalized development expenditures. Capitalization rate Capitalized development expenditures as a percentage of total development expenditures. Total development (R&D) expenditure/net sales Total development expenditure as percentage of net sales. EBITDA Operating earnings before depreciation and amortization. Complementing EBITDA with EBITDAC, where capitalized development expenditures are reversed, provides a good complement to operating earnings and margin as it, simplified, shows the earnings-generated cash flow in the operation and it shows operating earnings without influence of variations in the level of capitalized development expenditures in the company’s development projects. EBITDAC Operating earnings before depreciation and amortization and capitalization of development expenditure. The performance measure EBITDA-2 has, in 2023, changed its conceptual name to EBITDAC, the definition is unchanged. EBITDA & EBITAC margin EBITDA & EBITDAC as a percentage of net sales. Regions Definition of regions for designation of revenue: • EMEA – Europe, the Middle East and Africa. • Americas (AM) - North and South America. • APAC – Asia and Pacific. Definition of regions for designation of revenue. ===== SIDA 16 ===== 16 | Net Insight Change in net sales in comparable currencies SEK millions (if not defined differently) 2023 2022 2023 2022 Net sales 162.5 125.0 559.4 475.1 Net currency effect of comparable currencies -3.4 -13.1 -23.9 -43.7 Net sales in comparable currencies 159.1 111.9 535.5 431.5 Change in net sales in comparable currencies 27.2% 3.7% 12.7% 13.3% Oct-Dec Jan-Dec KPI Income Statement SEK millions (if not defined differently) 2023 2022 2023 2022 Net sales 162.5 125.0 559.4 475.1 Net sales YoY, change in % 30.0% 15.9% 17.7% 24.8% Cost of sales ex. amortization of capitalized development -47.0 -35.6 -162.4 -131.3 Gross earnings ex. amortization of capitalized development 115.5 89.5 396.9 343.8 Gross margin ex. amortization of capitalized development 71.1% 71.6% 71.0% 72.4% Cost of sales amortization of capitalized development -12.9 -11.9 -55.1 -46.2 Gross earnings 102.6 77.6 341.8 297.7 Gross margin 63.1% 62.1% 61.1% 62.7% Sales and marketing expenses -40.3 -35.3 -152.1 -130.0 Administration expenses -16.6 -13.4 -62.4 -52.8 Development expenses -15.4 -12.9 -51.8 -51.4 Operating expenses -72.3 -61.6 -266.4 -234.2 Operating expenses/net sales 44.5% 49.3% 47.6% 49.3% Other operating income and expenses -0.8 -2.8 -4.5 -3.0 Operating earnings 29.4 13.2 70.9 60.5 Operating margin 18.1% 10.6% 12.7% 12.7% Net financial items -0.5 -0.4 6.5 8.4 Profit before tax 29.0 12.8 77.4 68.9 Tax -6.4 -2.9 -17.3 -14.9 Net Income 22.6 9.9 60.1 54.0 Net margin 13.9% 7.9% 10.7% 11.4% Oct-Dec Jan-Dec EBITDA margin SEK millions (if not defined differently) 2023 2022 2023 2022 Net sales 162.5 125.0 559.4 475.1 Operating earnings 29.4 13.2 70.9 60.5 Amortization of capitalized development expenditure 12.9 11.9 55.1 46.2 Other depreciation & amortization 3.9 3.6 16.5 14.5 Impairment - - - 1.5 EBITDA 46.2 28.7 142.5 122.7 EBITDA margin 28.4% 23.0% 25.5% 25.8% Capitalization of development expenditure -24.5 -24.6 -93.4 -87.6 EBITDAC 21.7 4.1 49.1 35.1 EBITDAC margin 13.4% 3.3% 8.8% 7.4% Oct-Dec Jan-Dec Development expenditure SEK millions (if not defined differently) 2023 2022 2023 2022 Development expenses 15.4 12.9 51.8 51.4 Capitalization of development expenditure 24.5 24.6 93.4 87.6 Total development expenditure 39.9 37.6 145.2 139.0 Capitalization rate 61.4% 65.6% 64.3% 63.0% Net Sales 162.5 125.0 559.4 475.1 Total development expenditure/net sales 24.5% 30.0% 26.0% 29.2% Oct-Dec Jan-Dec ===== SIDA 17 ===== 17 | Net Insight CAPITAL AND RETURN MEASURES SHOWS HOW CAPITAL IS UTILIZED AND THE COMPANY’S FINANCIAL STRENGTH. RETURN IS A FINANCIAL TERM THAT DESCRIBES HOW MUCH THE VALUE OF AN ASSET CHANGES FROM AN EARLIER POINT IN TIME. Non-IFRS performance measure Description Reason for use of the measure Working capital Current assets less cash and cash equivalents, accounts payable and other interest-free current liabilities. The Company has no interest-bearing liabilities, excluding lease liabilities. Changes in working capital in the cash flow statement also includes adjustments for items not affecting liquidity and changes in non-current operating assets and liabilities. This measure shows how much working capital that is tied up in the operations and can be put in relation to sales to understand how effectively tied up working capital is used. Capital employed The Company capital employed is calculated as an average of total assets, less total liabilities, excluding interest-bearing liabilities. The Company has no interest-bearing liabilities, excluding lease liabilities. Return on capital employed is the central ratio for measuring the return on the capital tied up in operations. Return on capital employed Operating earnings plus interest income, in relation to average capital employed, rolling four quarters. Equity/asset ratio Shareholders’ equity divided by the balance sheet total. A traditional measure for showing financial risk, expressing the ratio of the assets that is financed by the owners. Return on equity Net income as a percentage of average share- holders’ equity, rolling four quarters (R4Q). Return on equity shows the total return on shareholders’ capital and reflects the effect of the company’s profitability as well as the financial leverage. Investments Investments in intangible and tangible assets. Definitions to rows in the cash flow statement. Total cash flow Change in cash and cash equivalents during the period, excluding exchange differences in cash and cash equivalents. Working capital SEK millions 2023 2022 2023 2022 Current assets 522.1 547.8 533.5 548.4 Cash and cash equivalents -264.5 -301.4 -276.4 -328.4 No interest-bearing short term liabilities -140.5 -143.7 -143.5 -143.5 Working capital 117.0 102.7 113.6 76.5 Oct-Dec Jan-Dec Return on capital employed SEK millions (if not defined differently) 2023 2022 2023 2022 Capital employed Total balance 838.8 836.2 841.6 831.1 No interest-bearing liabilities -195.9 -193.9 -201.0 -175.5 Capital employed 642.9 642.3 640.6 655.6 Operating earnings less interest income R4Q Operating earnings R4Q 70.9 60.5 70.9 60.5 Interest income R4Q 19.6 2.4 19.6 2.4 Operating earnings less interest income R4Q 51.3 58.1 51.3 58.1 Return on capital employed 8.0% 9.0% 8.0% 8.9% Oct-Dec Jan-Dec Equity/asset ratio SEK millions (if not defined differently) 2023 2022 2023 2022 Equity 622.2 605.1 622.2 605.1 Total equity and liabilities 838.4 845.2 838.4 845.2 Equity/asset ratio 74.2% 71.6% 74.2% 71.6% Oct-Dec Jan-Dec ===== SIDA 18 ===== 18 | Net Insight SHAREHOLDERS’ INFORMATION MEASURES RELATED TO THE SHARE. Non-IFRS performance measure Description Reason for use of the measure Average number of outstanding shares Total number of shares in the Parent company, less the number of group companies’ holdings of shares in the Parent company (own/treasury shares). Definitions of IFRS performance measures. Measures showing the return of the business to the owners, per share. Dividend per share Dividend divided by the average number of outstanding shares during the period. Earnings per share (EPS) Net income divided by the average number of outstanding shares during the period. Cash flow per share Total cash flow, divided by average number of outstanding shares during the period. Measures showing the return of the business to the owners, per share. Equity per share Shareholders’ equity divided by number of out- standing shares at the end of the period. Employees Measures related to employees. Non-IFRS performance measure Description Reason for use of the measure Average number of employees and consultants/co-workers The average number of employees and consultants for non-temporary positions (longer than nine months) and who do not replace absent employees, in FTE (Full-time equivalent). To supplement the number of employees with consultants gives a better measure of the Company’s cost. Return on equity SEK millions (if not defined differently) 2023 2022 2023 2022 Net income - R4Q 60.1 54.0 60.1 54.0 Average equity - R4Q 618.0 624.2 612.4 624.2 Return on equity 9.7% 8.7% 9.8% 8.7% Oct-Dec Jan-Dec 2023 2022 2023 2022 Average number of employees 153 138 146 131 Average number of consultants 43 45 45 45 Total average number of employees and consultants 196 183 191 176 Average number of employees and consultants Oct-Dec Jan-Dec ===== SIDA 19 ===== 19 | Net Insight MATERIAL PROFIT AND LOSS ITEMS The group has identified a number of items which are material due to the significance of their nature and/or amount. These are listed separately here to provide a better understanding of the financial performance of the group: All items in the table above effects operating earnings, except for (d) that affects cash flow. (a) Severance pay in due to structural changes. (b) Covid-19 related government grants for personnel and other resources that still contribute to creating value for the Company. (c) During the third quarter of 2022, a restructuring was carried out, among other things to achieve a tighter integration of the Nimbra and Aperi platforms. As a consequence, some development projects were cancelled. (d) Presenting the cash flow without effects from the repurchase program of own shares and exercised warrants provides a better understanding and comparison of the underlying operations' cash flow. Material profit and loss items SEK millions Note 2023 2022 2023 2022 Exchange rate differences Part of Other operating income & expenses -0.1 -2.7 -5.0 -1.9 Part of Net Financial Items -2.5 -1.3 -0.8 6.9 Total Exchange rate differences -2.5 -4.0 -5.7 5.1 Government grants Covid-19 Reduction of employee expenses - - - - Other operating income - - - 0.1 Total - - - 0.1 Items affecting comparability Restructuring (a) - - - -1.2 Government grants Covid-19, other operating income (b) - - - 0.1 Government grants electricity support, other operating income - - 0.6 - Impairment of intangible assets (c) - - - -1.5 Total - - 0.6 -2.6 Operating earnings excluding items affecting comparability Operating earnings 29.4 13.2 70.9 60.5 Items affecting comparability, as per above - - -0.6 2.6 Total 29.4 13.2 70.3 63.1 Operating earnings excluding exchange rate differences Operating earnings 29.4 13.2 70.9 60.5 Exchange rate differences, as per above 0.1 2.7 5.0 1.9 Total 29.5 15.9 75.9 62.4 Operating earnings excluding exchange rate differences & items affecting comparability Operating earnings 29.4 13.2 70.9 60.5 Exchange rate differences, as per above 0.1 2.7 5.0 1.9 Items affecting comparability, as per above - - -0.6 2.6 Total 29.5 15.9 75.3 65.0 Cash flow excluding share-base transactions (d) Net change in cash and cash equivalents 4.2 14.0 -41.7 -47.0 Repurchase of own shares 15.1 23.5 50.4 98.3 Exercised warrants -1.8 - -7.8 - Total 17.5 37.5 0.9 51.3 Oct-Dec Jan-Dec ===== SIDA 20 ===== Net Insight AB (publ), corp.id.no. 556533-4397 Telephone: +46 (0)8 685 04 00, info@netinsight.net, www.netinsight.net The information presented in this document may be subject to change without notice. For further information on product status and availability, please contact info@netinsight.net or visit www.netinsight.net ©Copyright 2024. Net Insight AB (publ), Sweden. All rights reserved. Net Insight and Nimbra are trademarks of Net Insight AB, Sweden. All other registered trademarks are the property of their respective owners.