SALES GROWTH AND INCREASED OPERATING MARGIN

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SALES GROWTH AND INCREASED OPERATING MARGIN

SUMMARY FOR JANUARY-SEPTEMBER 2015



Net sales SEK 448,3 M (350,4)



Profit before tax SEK 67,8 M (42,4)



Operating margin 16 % (13)



Earnings per share before dilution SEK 9,02 (5,47)



Cash flow from operations SEK 106,4 M (91,1)

SUMMARY FOR JULY-SEPTEMBER 2015



Net sales SEK 152,2 M (132,8)



Profit before tax SEK 24,0 M (18,1)



Operating margin 17 % (15)



Earnings per share before dilution SEK 3,25 (2,02)



Cash flow from operations SEK 7,0 M (0,6)



Acquisition of Datamann A/S and Infoeasy AS

CEO´S COMMENTS

The quarter got off to a quick start, with two acquisitions in two days. The two acquired companies – Datamann in Denmark and Infoeasy in Norway – both deliver software to the automotive industry. Together with Autodata in Norway, these now form Business Area Auto, which will have annual sales of approximately SEK 100 million. At the same time as Business Area Auto is being strengthened, this also entails improved spreading of risks within the group. Four of seven business areas presently have sales of over SEK 100 million and no business area constitutes more than 30 percent of the group.

Vitec's financial position and preparedness for future acquisitions are good. The credit facility of SEK 250 million arranged on June 30, along with the group's earning capabilities, provides the financial conditions. We intend to continue growing through acquisitions, and with a Nordic focus we are monitoring a list of prospects of about 100 attractive, vertical software companies, with combined sales in excess of SEK 4 billion. We thus see good conditions for continued acquisitions.

Following our applied business model, with strivings for a high portion of recurring revenue, continues to produce results. Recurring revenue accounted for 81% (78% last year) of the quarter's total revenue, and for the year's first three quarters, the corresponding figure was 79% (75%). The high portion of recurring revenue gives us the capability to take a long-term and consistent approach, at the same time as it provides excellent conditions for absorbing temporary downturns within individual business areas.

With a clear shift from traditional licensing to a subscription model (SaaS), the portion of recurring revenue and the operating margin increase simultaneously. Together with our employees' tremendous capacity for renewal and integrating acquisitions, this provides good conditions for long-term development of our entire organization. With frequent acquisitions of well-established companies and a growing portion of recurring revenue, Vitec will continue along the established path, operating in several independent and specialized niche markets to achieve sustainable and profitable growth.

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January - September 2015

The group’s focus on increasing repetitive revenue streams and efficiency continues to produce positive effects. The period has been strong and brought improvements to nearly all of our operations. Two new units have been added to Business Area Auto during the period, which has further increased both sales and repetitive revenue streams, and strengthened our product portfolio.

Business Area Estate Agent

Our Swedish organization held its annual user meetings, which for the first time, were overbooked. We set a new record by a wide margin in total participants. During the period, the real estate firm of Erik Olsson

Fastighetsförmedling deployed our new web-based system Express. In making full use of our cloud service, the firm has become 100 percent mobile, giving estate agents both considerable flexibility and increased efficiency. Our Norwegian organization launched a new integration engine, Vitec Hub, which makes it easier for external solutions to integrate with our systems. We also co-located one of our units to downtown Oslo.

Business Area Real Estate

Real Estate continues the strong trend with constant improvements both to sales volumes and profits. The order volume is strong and we are continuing to win market shares. During the period, the business area's largest-ever implementation project was completed according to plan for our customer Förvaltaren in Sundbyberg. Just as for Estate Agent in Sweden, Real Estate set a new participant record for its user meeting, which was recently held in Solna.

Business Area Media

A new version of the Balans business system was launched during the period. We have seen continued high demand for our services among the business area's larger customers.

Business Area Energy

Energy reported increases both in profits and sales during the period. The business area continues to place major emphasis on cultivating the European market, primarily when it comes to wind and energy prognoses.

Business Area Health

Health provides a complete, web-based, medical records system for the Finnish market. During the period, a specification project was begun for a new larger customer. The previous product unit Koupio has moved to Tammerfors and operations have thus become better coordinated at a single geographical location.

Business Area Auto

Business Area Auto strongly increased sales during the period. This was because of a new company in Norway that provides repair shop systems and a new company in Denmark with software for car dealerships and repair shops. Our previous organization in Norway released a new software version for the Norwegian car inspection market.

Business Area Finance and Insurance

Finance and Insurance in Denmark has launched the latest version of our portfolio management system. The new version entails a technology upgrade that gives our customers a modern and efficient solution. Roll-out of the new version means that we can now shift our focus and cultivate the market with full force. The Swedish organization has signed a new customer agreement for our solution for capital gains.

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FINANCIAL INFORMATION

Sales and results

July-September 2015 Revenues

Net sales for the period amounted to SEK 152,2 million (132,8), which represents an increase of 15 %. License revenue increased 14 % from the previous year and amounted to SEK 4,8 million (4,2). Recurring revenue for the period increased by 18 % from the previous year and amounted to SEK 123,4 million (104,2), corresponding to 81 % (78) of net sales. Service revenues increased by 2 % from the previous year and amounted to SEK 22,1 M (21,6).

Fox Publish AS and ADservice Scandinavia AB were consolidated from March 2 and contributed during the period with net sales of SEK 4,6 million. Datamann A/S was consolidated from July 1 and contributed with net sales of SEK 9,9 million. Infoeasy AS was consolidated from July 2 and contributed with net sales of SEK 5,1 million.

Results

Operating profit amounted to SEK 25,6 million (19,4) with an operating margin of 17 % (15). Profit after tax amounted to SEK 19,1 million (11,7). Earnings per share before dilution were SEK 3,25 (2,02).

January-September 2015 Revenues

Net sales for the period amounted to SEK 448,3 million (350,4), which represents an increase of 28 %. License revenue declined 10 % from the previous year and amounted to SEK 15,2 million (16,8). Recurring revenue for the period increased by 35 % from the previous year and amounted to SEK 355,2 million (263,6), corresponding to 79 % (75) of net sales. Service revenues increased by 13 % from the previous year and amounted to SEK 73,8 M (65,4). Fox Publish AS and ADservice Scandinavia AB were consolidated from March 2 and contributed during the period with net sales of SEK 15,5 million. Datamann A/S was consolidated from July 1 and contributed with net sales of SEK 9,9 million. Infoeasy AS was consolidated from July 2 and contributed with net sales of SEK 5,1 million.

Results

Operating profit amounted to SEK 72,2 million (45,3) with an operating margin of 16 % (13). Profit after tax amounted to SEK 53,0 million (30,2). Earnings per share before dilution were SEK 9,02 (5,47).

Liquidity and financial status

The Group's cash and cash equivalents, including short-term investments, at end of period amounted to SEK 55,4 million (51,9). In addition to these cash and cash equivalents, was a bank overdraft facility of SEK 20 million, and SEK 195,2 million of a credit facility of SEK 250 million. Cash flow from operating activities was SEK 106,4 million (91,1). Investments totaled SEK 48,5 million in intangible assets including capitalized work and SEK 8,2 million in tangible assets. Through the acquisitions of Fox Publish AS, ADservice Scandinavia AB, Datamann A/S and Infoeasy AS SEK 100,1 million was invested in product rights, brands, customer contracts and goodwill.

Total interest-bearing liabilities amounted on September 30, 2015 to SEK 234,5 million (193,9) distributed on long term debt SEK 195,4 million (126,8) and short-term interest-bearing liabilities SEK 39,2 million (67,2). During the period one new loan from Norrlandsfonden was signed totaling SEK 25,0 million. In connection to the new loan a convertible loan from Norrlandsfonden was resolved to the amount of SEK 36,8 million. In connection with the acquisition of Datamann A/S SEK 54,9 millon was used from the credit facility.

Equity attributable to Vitec's shareholders amounted to SEK 256,8 million (239,8). The equity ratio was 32 % (35). The payment of dividend after the Annual General Meeting in May amounted to SEK 3,35 per share, totaling SEK 19,7

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SIGNIFICANT EVENTS DURING THE THIRD QUARTER

July 1-2: Vitec acquired Datamann A/S in Denmark and Infoeasy AS in Norway

Vitec Software Group AB (publ) did on July 1 agree to acquire 100 % of the Danish software company Datamann A/S, whose main product is an industry-specific software for the Danish car industry. Sales for the financial year 2013/-14 where 29,5 million DKK with approximately 70 % recurring revenue and EBITDA of 4,3 million DKK. The result for the financial year 2014/-15 is estimated to be 6 million DKK at EBITDA-level and net sales is expected to be 31 million DKK. Payment was cash 44,4 million DKK, of which 9,4 million DKK is compensation, DKK for DKK, for the excess liquidity. The acquisition is expected to directly result in increased earnings per share of Vitec. Completion took place immediately.

On July 2 Vitec agreed to acquire 100 % of the Norwegian software company Infoeasy AS, whose product is an industry-specific software for the Norwegian automotive industry. Sales for the financial year 2014 were 21,8 million NOK with approximately 50 % recurring revenue and EBITDA of 1,9 million NOK. Payment was cash 15,4 million NOK, of which 5.4 million NOK is compensation, NOK for NOK, for the excess liquidity. The acquisition is expected to directly result in increased earnings per share of Vitec. Consolidation took place from July 1.

July 3: Maria Skogelid – new marketing manager at Vitec

Maria Skogelid takes on September 1 is a new position as Marketing Director of Vitec, with Umeå as home base. She has previously worked in brand management, and marketing in areas such as dairy and insurance. Maria comes from Norrmejerier, where she worked as a marketing for the export brands Västerbottenost and Gainomax.

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OPERATIONS

Result overview for segments, TSEK

Vitec Group operations are controlled and organized in seven business units. For more information on each business unit, refer to www.vitecsoftware.com. The business units are; Estate Agent, Real Estate, Media, Energy, Health, Auto and Finance & Insurance.

Segment Mäklare (BA Estate Agent):

The segment consists of Vitec Mäklarsystem AB, Capitex AB, Vitec IT-Makeriet AS, the Group Vitec Midas AS and from March 2 Fox Publish AS and ADservice Scandinavia AB. The business unit provides software for real estate agents.

Segment Fastighet (BA Real Estate):

The segment consists of Vitec Fastighetssystem AB, Vitec Förvaltningssystem AB and Vitec Capifast AB. The business unit offers software applications for building owners, construction and management companies, property managers and real estate developers.

Segment Media (BA Media):

The segment consists of 3L Media AB, Vitec Veriba AB and Retail i Linköping AB. The business unit offers software for newspaper companies and a few managed solutions for distribution and retail.

Segment Energi (BA Energy):

The segment consists of Vitec Energy AB. The business unit offers a forecasting software system of electricity and heat demand, wind power, and software supporting the technical management and maintenance of the energy distribution networks.

Segment Hälsa (BU Health):

The segment consists of the Group Acuvitec FDS Oy and IMHO Holding Oy. The business unit offers software for electronic medical records used for health care in Finland. The companies were acquired February 28 2014.

Segment Auto (BA Auto):

The segment consists of Vitec AutoData Norge AS and Infoeasy AS in Norway and Datamann A/S in Denmark. The business area offers industry specific business applications for the automotive sector with support for sales, purchasing, inventory control, billing, accounting and salary. Its customers include importers, wholesalers, retailers, distributors and retailers but also workshops. AutoData Norge AS was acquired April 24 2014 and Datamann A/S and Infoeasy AS 1:st and 2:nd of July 2015 respectively. Segment Finans & Försäkring (BA Finance & Insurance):

The segment consists of Vitec Capitex AB and the Group Aloc A / S. The business area offers systems for tax calculations, pension calculations and housing calculations and operational systems for the Nordic financial and insurance sector. The group Aloc A/S was acquired June 30 2014.

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Segment reporting* SEGMENT 2015 jul-sep 2014 jul-sep 2015 jan-sep 2014 jan-sep 2015 jul-sep 2014 jul-sep 2015 jan-sep 2014 jan-sep BA Estate Agent 47 977 47 235 155 482 140 736 7 232 9 310 24 603 23 872 BA Real Estate 30 858 30 842 101 574 96 934 6 255 6 547 18 144 13 313 BA Media 2 164 3 263 8 222 17 955 674 -158 2 255 424 BA Energy 5 429 5 495 17 280 17 112 1 714 2 221 5 870 4 974 BA Health 15 949 12 521 46 058 29 536 3 716 3 318 5 908 4 239 BA Auto 24 296 10 477 44 987 18 138 3 145 124 7 074 2 320

BA Finance & Insurance 25 405 22 787 74 359 29 648 5 129 -1 310 10 782 210

Shared 121 175 356 384 -31 - -

-Vitec Group 152 199 132 795 448 318 350 443 27 834 20 052 74 637 49 352

Acquisition-related costs -2 259 -618 -2 403 -4 058

Operating profit after

acquisition-related costs 25 576 19 434 72 234 45 294

Net financial income/expence -1 596 -1 350 -4 457 -2 895

Profit before tax 23 980 18 084 67 777 42 399

NET SALES (SEK THOUSENDS)

PROFIT BEFORE ACQUISITION_RELATED COSTS (SEK THOUSENDS)

Due to non-recurring acquisition-related costs, progress in the business areas are difficult to follow. For this reason, the operating profit has been split into operating profit before and after acquisition-related costs.

Sales by geography

The table below shows the Group's net sales translated to MSEK based on the customer's location.

MARKET 2015 jan-sep % 2014 jan-sep % 2014 jan-dec % Sweden 222,2 49,6% 222,5 63,5% 298,2 60,6% Norway 105,9 23,6% 76,4 21,8% 106,1 21,6% Finland 48,4 10,8% 31,8 9,1% 46,9 9,5% Denmark 69,3 15,5% 17,0 4,9% 37,3 7,6% Other Europé 2,4 0,5% 2,3 0,7% 2,9 0,6% Rest of world 0,1 0,0% 0,4 0,1% 0,6 0,1% SUM 448,3 100,0% 350,4 100,0% 492,0 100,0%

NET SALES (MSEK)

50% 24% 11% 15%

Market

Sweden Norway Finland Denmark Rest of Europé

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*Före förvärvsrelaterade kostnader

Business Area Estate Agent, January-September 2015

Total revenues amounted to SEK 155,5 million (140,7) an increase of 10 %. License revenues decreased and amounted to SEK 1,8 million (1,9). Recurring revenue increased by 14 % to SEK 146,0 million. Service revenue declined 29 % to SEK 7,0 million. Recurring revenue as a percentage of net sales was 94 % (91). Operating margin decreased and amounted to 16 % (17). As of March 2, operations in Fox Publish AS and ADservice Scandinavia AB were consolidated in the business area.

Business Area Real Estate, January-September 2015

Total revenues amounted to SEK 101,6 million (96,9), an increase of 5 %. License revenues declined by 12 % and amounted to SEK 6,8 million. Recurring revenue increased 8 % to SEK 60,6 million. Services revenue increased by 10 % to SEK 34,2 million. Recurring revenue as a percentage of net sales was 60 % (58). Operating margin increased to 18 % (14).

Business Area Media, January-September 2015

The total revenues amounted to SEK 8,2 million (18,0), a decrease of 54 %. License revenue declined 88 % to SEK 0,6 million. The comparative period includes a one-time sale of a software license to Eniro. Recurring revenue declined 38 % to SEK 3,5 million. Service revenues declined 42 % to SEK 4,1 million. Recurring revenue as a percentage of net sales was 43 % (32). Operating margin increased and amounted to 27 % (2).

Business Area Energy, January-September 2015

The total revenues amounted to SEK 17,3 million (17,1), an increase of 1 %. Recurring revenue increased 8 % to SEK 12,9 million. Service revenues decreased 12 % to SEK 4,4 million. Recurring revenue as a percentage of net sales was 75 % (70). Operating margin increased to 34 % (29).

0 5 10 15 20 25 30 Estate Agent Real Estate

Media Energy Health Auto Finance & Ins.

**Oper. profit* Jan-Sep /BA (MSEK)**

2014

2015

0 50 100 150 200 Estate Agent Real Estate

Media Energy Health Auto Finance & Ins.

Net sales Jan-Sep /BA (MSEK)

2014

2015

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Business Area Health, January-September 2015

Total revenues for the period amounted to SEK 46,1 million. License revenues amounted to SEK 0,3 million. Recurring revenue amounted to SEK 36,0 million and services to SEK 9,2 million. Comparative figures are not available. Recurring revenue as a percentage of net sales was 78 %. The operating margin was 13 %.

Business Area Auto, January-September 2015

The total revenues amounted to SEK 45,0 million. Recurring revenue amounted to SEK 38,9 million, services to SEK 3,7 million and other SEK 0,2 million. Comparative figures are not available. Recurring revenue as a percentage of net sales was 87 %. Operating margin was 16 %. As of July, operations in Datamann A/S and Infoeasy AS were consolidated in the business area.

Business Area Finance & Insurance, January-September 2015

The total revenue amounted to SEK 74,4 million (29,6), an increase of 151 %. License revenues increased 216 % to SEK 5,5 million. Recurring revenue increased by 136 % to SEK 57,1 million. Service revenues increased by 215 % to SEK 11,2 million. Recurring revenue as a percentage of net sales was 77 % (82). Operating margin increased to 14 % (1). Operations in Aloc A / S was consolidated in the business area as of June 30 2014, and is the reason for the strong growth.

Risks and uncertainties

Vitec’s significant risks and uncertainties are described in the Directors' Report in the Annual Report for 2014 under the heading "Risks and Uncertainties" on pages 36-37, note 1 under "Assumptions and estimates" on page 54 and Note 20, "Financial risks and their management "on pages 67-68. No significant changes have occurred since then.

The Parent Company

Net sales amounted to SEK 68,2 million (40,0) and consisted primarily of sales to subsidiaries for services rendered. Profit after tax amounted to SEK 7,6 million (-5,4). The Parent Company is exposed to the same risks and

uncertainties that the group in general, see above under section Risks and uncertainties.

Transactions with related parties

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SEK (thousends) 2015 jul-sep 2014 jul-sep 2015 jan-sep 2014 jan-sep 2014 jan-dec OPERATING REVENUE Recurring revenues 123 396 104 227 355 157 263 585 372 838 License revenues 4 810 4 209 15 208 16 838 24 928 Service revenues 22 111 21 584 73 799 65 396 87 997 Other revenues 1 882 2 775 4 154 4 624 6 193 NET SALES 152 199 132 795 448 318 350 443 491 956

Capitalized development costs 13 689 9 545 47 036 28 613 46 261 Unrealized exchange gains 9 521 392 15 288 1 056 2 809 Unrealized exchange gains* 11 213 - 11 213 -

-Sum 186 622 142 732 521 855 380 112 541 026

OPERATING EXPENSES

Goods for resale -2 164 -443 -4 747 -1 766 -2 786 Subcontractors and subscriptions -19 668 -17 190 -61 901 -44 846 -66 546 Other external expenses -19 606 -16 346 -57 011 -47 710 -63 983 Staff costs -78 919 -72 981 -247 294 -193 578 -275 665 Depreciation of tangible and intangible assets -18 883 -14 634 -51 294 -40 707 -56 319 Impariment of Goodwill -11 213 - -11 213 - -Unrealized exchange losses -8 334 -1 086 -13 758 -2 153 -3 077

TOTAL COSTS -158 787 -122 680 -447 218 -330 760 -468 376 OPERATING PROFIT BEFORE ACQUSITION-RELATED

COSTS 27 835 20 052 74 637 49 352 72 650

Acqusition-related costs -2 259 -618 -2 403 -4 058 -4 058

OPERATING PROFIT AFTER ACQUSITION-RELATED COSTS 25 576 19 434 72 234 45 294 68 592

Income from financial investments

Financial income 80 263 291 623 1 547

Financial expense -1 676 -1 613 -4 748 -3 518 -5 594

TOTAL FINANCIAL ITEMS -1 596 -1 350 -4 457 -2 895 -4 047

PROFIT BEFORE TAX 23 980 18 084 67 777 42 399 64 545

Tax -4 870 -6 352 -14 767 -12 154 -15 480

NET PROFIT 19 110 11 732 53 011 30 245 49 065

OTHER COMPREHENSIVE INCOME, ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS

Currency translation differences -5 857 2 976 -9 587 5 958 1 324

TOTAL OTHER COMPREHENSIVE INCOME FOR THE PERIOD -5 857 2 976 -9 587 5 958 1 324 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 13 253 14 708 43 424 36 203 50 389 PROFIT FOR THE PERIOD ATTRIBUTABLE TO

-Shareholders of the Parent Company 19 110 11 732 53 011 30 245 49 065

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO

-Shareholders of the Parent Company 13 253 14 708 43 424 36 203 50 389

EARNING PER SHARE

-Before dilution (SEK) 3,25 2,02 9,02 5,47 8,76 -After dilution (SEK) 3,21 1,92 8,93 5,18 8,39 Average number of shares 5 879 338 5 798 327 5 879 338 5 529 865 5 600 681 Number of shares after dilution 5 967 780 6 165 086 5 954 174 5 896 624 5 886 395

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

SEK (thousends) ASSETS 2015-09-30 2014-09-30 2014-12-31 FIXED ASSETS Intangible assets Goodwill 201 702 182 480 190 902

Capitalized development costs 103 722 65 373 76 562

Software 3 440 2 749 3 226

Brands 9 032 7 810 7 752

Product rights 228 223 203 058 197 815

Customer agreements 61 791 48 742 47 884

Tangible fixed assets

Buildings 9 096 9 160 9 115

Equipment 21 867 18 480 19 674

Financial Assets

Other long-term receivables 858 -

-Deferred tax 6 237 7 445 6 001

TOTAL FIXED ASSETS 645 968 545 297 558 931

CURRENT ASSETS

Inventories 358 285 339

Receivables 105 061 81 761 142 517

Short-term investments 20 000 45 000

-Cash and equivalents 35 416 6 888 71 114

TOTAL CURRENT ASSETS 160 835 133 934 213 970

TOTAL ASSETS 806 803 679 231 772 901

EQUITY AND LIABILITIES

EQUITY 256 713 239 777 260 130

LONG-TERM LIABILITIES, INTEREST BEARING 195 366 126 764 132 593

LONG-TERM LIABILITIES, NON-INTEREST BEARING 105 114 97 253 108 428

SHORT-TERM LIABILITIES, INTEREST BEARING 39 153 67 154 59 284

SHORT-TERM LIABILITIES, NON-INTEREST BEARING 210 457 148 283 212 466

TOTAL EQUITY AND LIABILITIES 806 803 679 231 772 901

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SEK (thousands) 2015 jul-sep 2014 jul-sep 2015 jan-sep 2014 jan-sep 2014 jan-dec EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT

COMPANY

At beginning of period 243 459 225 069 260 130 169 607 169 607 Option element convertible bond - - - - 865

Conversion bonds - - - 2 733 8 035

Redemption bonds - - -27 145 -

-Issue of new shares after issue costs* - - - 45 832 45 832

Dividend - - -19 696 -14 598 -14 598

Total comprehensive income for the period 13 253 14 708 43 424 36 203 50 389

At end of period 256 713 239 777 256 713 239 777 260 130

* The issue expenses amounted to SEK 1,4 millon.

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CONSOLIDATED STATEMENT OF CASH FLOWS

SEK (thousands) 2015 2014 2015 2014 2014

jul-sep jul-sep jan-sep jan-sep jan-dec OPERATING ACTIVITIES

Operating profit 25 576 19 434 72 234 45 294 68 592

Adjustments for items not included in cash flow

Depreciation/amortisation and impairment 18 883 14 634 51 294 40 707 56 319 44 459 34 068 123 528 86 001 124 911

Interest received 80 263 291 623 1 547

Interest paid -1 676 -1 613 -4 748 -3 518 -5 594

Tax paid -5 119 -2 332 -15 247 296 2 356

CASH FLOW FROM OPERATING ACTIVITIES BEFORE

CHANGES IN WORKING CAPITAL 37 744 30 386 103 824 83 402 123 220

Changes in working capital

Change in inventories 70 24 92 -5 -59

Change in operating receivables 1 212 5 628 49 538 32 103 -28 653

Change in operating liabilities -32 048 -35 444 -47 082 -24 400 34 820 CASH FLOW FROM CURRENT OPERATIONS 6 978 594 106 372 91 100 129 328 Investment activities

Change in long-term receivables 203 - -524 -

-Acquisition of subsidiaries, net* -53 005 7 793 -67 397 -148 522 -148 522 Acquisition of intangible assets and capitalized development costs -13 492 -11 218 -48 494 -32 389 -49 815

Acqusition of tangible assets -2 810 -3 232 -8 205 -7 556 -10 783

CASH FLOW FROM INVESTMENT ACTIVITIES -69 103 -6 657 -124 620 -188 467 -209 120 FINANCING ACTIVITIES

Dividend - - -19 696 -14 598 -14 598

Redemption convertible loan - - -36 781 -

-New loans 56 139 15 000 81 139 148 154 162 224

Amortisation of loans -1 321 -27 870 -25 348 -52 814 -63 907

Issue of new shares - - - 45 832 45 832

CASH FLOW FROM FINANCING ACTIVITIES 54 818 -12 870 -686 126 574 129 551

CASH FLOW FOR THE PERIOD -7 307 -18 933 -18 934 29 207 49 759

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 60 158 70 004 71 114 21 319 21 319 EXCHANGE-RATE DIFFERENCES IN CASH AND CASH

EQUIVALENTS 2 565 817 3 236 1 362 36

CASH AND CASH EQUIVALENTS AT END OF PERIOD 55 416 51 888 55 416 51 888 71 114 * Payment for acquisition of subsidiaries in 2015 consisted of proceeds for Fox Publish AS, ADservice Scandinavia AB, Datamann A/S and Infoeasy AS. Payment for acquisition of subsidiaries in 2014 consisted of proceeds for Acute, Autodata and Aloc. All acquisitions related to the entire outstanding share capital and meant that control was obtained in all companies.

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INCOME STATEMENT, PARENT COMPANY

SEK (thousands) 2015 jul-sep 2014 jul-sep 2015 jan-sep 2014 jan-sep 2014 jan-dec NETE SALES 24 662 15 647 68 177 40 045 57 334 Operating costs -21 797 -12 556 -54 648 -42 404 -61 673 OPERATING RESULT 2 865 3 091 13 530 -2 359 -4 339

RESULT FROM FINANCIAL INVESTMENTS

Income from shares in group companies - - - - 31 459

Financial income 535 213 677 422 912

Financial expense -1 610 -1 604 -4 517 -3 443 -4 991

PROFIT AFTER FINANCIAL NET 1 790 1 700 9 690 -5 380 23 041

Appropriations - - - - 8 309

PROFIT BEFORE TAX 1 790 1 700 9 690 -5 380 31 350

Tax -394 - -2 132 - 143

NET PROFIT 1 396 1 700 7 558 -5 380 31 493

The results of the period are consistent with the total comprehensive income.

BALANCE SHEET, PARENT COMPANY

SEK (thousands) 2015-09-30 2014-09-30 2014-12-31 ASSETS FIXED ASSETS Intangible assets 3 456 2 974 3 699 Tangible assets 13 485 13 535 13 660 Financial assets 659 838 573 317 583 045

TOTAL FIXED ASSEST 676 779 589 826 600 404

CURRENT ASSETS

Receivables 20 805 35 359 44 056

Short-term investments 20 000 45 000

-Cash and equivalents 35 416 6 888 65 839

TOTAL CURRENT ASSETS 76 221 87 247 109 895

TOTAL ASSETS 753 000 677 073 710 299

EQUITY AND LIABILITIES

EQUITY 226 501 220 612 263 652

UNTAXED RESERVES 2 500 2 076 2 500

LONG-TERM LIABILITIES 199 333 140 891 153 644

SHORT-TERM LIABILITIES 324 666 313 494 290 503

TOTAL EQUITY AND LIABILITIES 753 000 677 073 710 299

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ANNOTATIONS

ANN 1 ACCOUNTING AND VALUATION PRINCIPLES AND OTHER COMMENTS

This report has been prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, IFRS, as adopted by the EU and the Swedish Annual Accounts Act. The parent company financial statements have been prepared in accordance with the Annual Accounts Act and recommendation RFR 2 Accounting for Legal Entities. The new standards, amendments and interpretations to existing standards that have entered into force in 2015, has had no impact on the consolidated financial position or financial reports. The accounting policies and calculation methods are unchanged from the one described in the Annual Report for 2014.

The additional purchase price for Acuvitec OY has been written down by SEK 11,2 million. The correction has been recognized as revenue and as impairment of goodwill in accordance with IFRS 3:58. The correction has no effect on reported profit.

ANN 2 INVESTMENTS

Investments amounted to SEK 48,5 million in intangible assets, including capitalized work and SEK 8,2 million in tangible assets. Through the acquisition of Fox Publish AS, ADservice Scandinavia AB, Datamann A/S and Infoeasy AS SEK 100,1 million was added in product rights, brands, customer contracts and goodwill.

ANN 3 LONG-TERM DEBT

Long-term interest-bearing debt consists of bank loans SEK 181,9 million and a convertible loan SEK 13,4 million. Long-term non-interest bearing liabilities consist of deferred taxes SEK 89,6 million, pension liability SEK 11,4 million, a non-current portion of additional purchase price Fox Publish 4,0 million and other long-term liabilities SEK 0,1 million.

ANN 4 CONVERTIBLE DEBENTURE

Convertible debentures are included in long-term interest bearing liabilities:

 Loan 1501 (long-term debt interest bearing liabilities, staff). SEK 13,4 million. Duration of the loan is January 1, 2015 - December 31, 2017. The interest rate is Stibor 180. The conversion price is SEK 159. Conversion may be requested 1 November to 30 November 2017. The share capital may upon conversion increase by a maximum of 44 221 SEK. At full conversion the dilution of about 1.5% of the share capital and 0.7% of the votes. The convertible program was registered by the Swedish Companies Registration Office February 11, 2015.

ANN 5 EQUITY

Consolidated shareholders' equity as of September 30, 2015 was SEK 256,7 million. The registered shares amounted to 800 000 A-shares with voting rights 10 (ten) and 5 079 338 Series B-shares with voting rights 1 (one).

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ANN 6 ACQUISITION ANALYSIS

Acquisition Fox Publish AS and ADservice Scandinavia AB

On March 2, 2015 Vitec acquired all the shares in Fox Publish AS and ADservice Scandinavia AB for a cash payment of SEK 15,0 million respectively SEK 0,4 million. The company develops and provides a publication system for real estate agents. Adservice Scandinavia is a sales company for the Swedish market. The companies are consolidated as of the acquisition date. The goodwill is not deductible for tax purposes and is considered to be attributable to the expected profitability, complementary expertise and synergies expected in the form of joint development of the Group's products. The acquisition increases Vitec's presence on the Norwegian software market. The maximum purchase price is SEK 24,1 million. The acquisition-related expenses amounted September 30 to SEK 0,1 million and are reported as other external costs of comprehensive income. From the acquisition date until September 30 the revenues amounts to SEK 15,5 million. If consolidation had occurred at the beginning of the year, the companies would have brought the Group an additional approximately 5,0 million in revenue. The following purchase price allocation is preliminary.

Preliminary purchase price allocation (SEK thousands)

Fox Publish AS and ADservice Scandinavia AB

Fair value adjustment

Fair value recognized in the Group

Brands - 434 434

Product Rights - 11 120 11 120

Customer Agreement - 6 875 6 875

Intangible fixed assets 123 - 123

Tangible fixed assets 366 - 366

Financial fixed assets 5 - 5

Current receivables 4 887 - 4 887

Cash and cash equivalents 983 - 983

Deferred tax liabilities - -4 966 -4 966

Current liabilities -4 706 - -4 706₀

Net identifiable assets and liabilities 1 658 13 463 15 121

Goodwill on consolidation 8 936

Total 24 057

The Group´s acquisition value 24 057

Calculation of net cash outflow Fair value

Group´s acqcuisition value -24 057

Debt aditional purchase price 8 682

Cash acquired 983

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Acquisition of Datamann A/S

On July 1, 2015 Vitec acquired all the shares in Datamann A/S for a cash payment of SEK 54,9 million. The company’s main product is a software for the Danish automotive sector.

The company is consolidated as of the acquisition date. The goodwill is not deductible for tax purposes and is considered to be attributable to the expected profitability, complementary expertise and synergies expected in the form of joint development of the Group's products. The acquisition increases Vitec's presence on the Danish software market and provide access to new markets. The acquisition-related expenses amounted September 30 to SEK 1,8 million and are reported as other external costs of comprehensive income. From the acquisition date until September 30 the revenues amounts to SEK 9,9 million. If consolidation had occurred at the beginning of the year, the company would have brought the Group an additional approximately 19,2 million in revenue. The following purchase price allocation is preliminary.

Preliminary purchase price allocation (SEK thousands) Datamann A/S

Brands - 1 835 1 835

Tangible fixed assets 1 069 - 1 069

Inventories 111 - 111

Cash and cash equivalents 15 235 - 15 235

Deferred tax liabilities -65 -10 316 -10 380

Total 54 901

Cash acquired 15 235

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Acquisition of Infoeasy AS

On July 2, 2015 Vitec acquired all the shares in Infoeasy AS for a cash payment of SEK 16,3 million. The company’s main product is a software for the Norwegian automotive sector.

The company is consolidated as of the acquisition date. The goodwill is not deductible for tax purposes and is considered to be attributable to the expected profitability, complementary expertise and synergies expected in the form of joint development of the Group's products. The acquisition increases Vitec's presence on the Norwegian software market and provide access to new markets. The acquisition-related expenses amounted September 30 to SEK 0,5 million and are reported as other external costs of comprehensive income. From the acquisition date until September 30 the revenues amounts to SEK 5,1 million. If consolidation had occurred at the beginning of the year, the company would have brought the Group an additional approximately 12,2 million in revenue. The following purchase price allocation is preliminary.

Preliminary purchase price allocation (SEK thousands) Infoeasy AS

Brands - 282 282

Intangible fixed assets 896 896

Tangible fixed assets 24 - 24

Financial fixed assets 334 - 334

Cash and cash equivalents 4 274 - 4 274

Deferred tax liabilities - -3 348 -3 348

Long-term liabilities -1 241 -1 241

Total 16 373

Cash acquired 4 274

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SIGNATURES

Umeå, October 21 2015.

_____________________________

Lars Stenlund (CEO)

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INFORMATION

Publication

The information in this report is such that Vitec Software Group AB (publ.) is obliged to publish under the Securities Market Act and/or the Financial Instruments Trading Act. The information was released for publication on October 21, 2015 at 08:30 CET.

Contact

CEO Lars Stenlund, +46 70 659 49 39,

lars.stenlund@vitecsoftware.com

CFO Maria Kröger, +46 70 324 66 58,

maria.kroger@vitecsoftware.com

Financial information

Can be ordered from: Vitec Software Group AB (publ), Investor Relations, PO-Box 7965, S-907 19 Umeå, Sweden Phone: +46 90-15 49 00

E-mail: ir@vitec.se

Financial information is published on www.vitecsoftware.com immediately after publication.

Financial calendar

2016-02-17 Year End Report 2015 (≈08:30 CET)

2016-05-11 Interim Report January - March 2016 (≈13:00 CET) 2016-05-11 AGM 2015 (≈17:30 CET)

Corporate registration

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KEY FIGURE DEFINITIONS

Return on capital employed

Operating profit as a percentage of average capital employed attributable to parent company

shareholders. Return on equity

Profit/loss for the period, attributable to parent company shareholders, as a percentage of average shareholders' equity, attributable to parent company shareholders.

Value added per employee

Operating income plus depreciation and staff costs relative to the average number of employees. Adjusted equity per share

Equity attributable to shareholders in proportion to the number of shares issued at the closing-day. Cash flow from operating activities per share Cash flow from operating activities divided by the average number of shares on the market during the period.

Sales per employee

Net revenue, including other operating income in relation to average number of employees. P/E ratio

Share price at year-end divided by earnings per share.

P/JEK

The share price at the balance sheet date multiplied by the number of shares issued on the closing date in relation to the equity attributable to the parent company's shareholders.

P/S

The share price at the balance sheet date multiplied by the average number of shares in relation to net sales.

Earnings per share

Profit/loss for the period, attributable to parent company shareholders, divided by the average number of shares on the market attributable to parent company shareholders.

Operating profit

Operating profit as a percentage of net sales. Solidity

Shareholders' equity, including equity attributable to non-controlling interests in relation to total assets. Debt ratio

Average liabilities in relation to average shareholders' equity and non-controlling interests.

Profit margin

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DIAGRAMS

50 % 60 % 70 % 80 % 90 % 100 % 0 MSEK 20 MSEK 40 MSEK 60 MSEK 80 MSEK 100 MSEK 120 MSEK 140 MSEK 160 MSEK Q3-12 Q3-13 Q3-14 Q3-15

Net sales (MSEK) Recurring part (%)

0 % 5 % 10 % 15 % 20 % 25 % 30 % 0 MSEK 20 MSEK 40 MSEK 60 MSEK 80 MSEK 100 MSEK 120 MSEK 140 MSEK 160 MSEK Q3-12 Q3-13 Q3-14 Q3-15

Net sales (MSEK) Oper. margin (%)

Distribution Net Sales Jan-Sep 2015

Estate Agent 35 % Real Estate 23% Finance & Ins. 17 % Health 10 % Auto 10 % Energy 4 % Media 2 %

Distribution Profit Jan-Sep 2015

Estate Agent 33 % Real Estate 24 % Finance & Ins. 14 % Energy 8 % Auto 9 % Health 8 % Media 3 % 0 SEK 10 SEK 20 SEK 30 SEK 40 SEK 50 SEK 2008 2009 2010 2011 2012 2013 2014

JEK per share (SEK)

0 SEK 5 SEK 10 SEK 15 SEK 20 SEK 25 SEK 2008 2009 2010 2011 2012 2013 2014 Cash flow per share (SEK)

2,0 SEK 4,0 SEK 6,0 SEK 8,0 SEK 10,0 SEK

Profit per share (SEK/share)

100 MSEK 200 MSEK 300 MSEK 400 MSEK 500 MSEK 600 MSEK

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A SOFTWARE COMPANY IN GROWTH

VERTICAL MARKET SOFTWARE

Vitec is a software company that offers industry specific business solutions to the Nordic market. The company, with operations in Sweden, Norway, Finland and Denmark is growing in the mature part of the software industry by consolidating vertical software segments. Its clients include property management companies, construction and real estate companies, banks and insurance companies, energy companies, health companies, companies dealing with car parts and newspaper companies. Group turnover has an annual capacity of 660 million SEK and has

approximately 470 employees. Vitec Software Group AB (publ.) is listed on Nasdaq OMX Stockholm.

Our mission is to provide industry-specific business solutions where our strategy is to focus on niches where there are needs that not as cost-effective can be met by general ERP-systems. In these niches we strive for a leading position. Our offer includes:

 proprietary software

 SaaS (Software as a Service), support and maintenance

 specialist services

The current market is made up to 50 % of Sweden, 24 % of Norway, 15 % of Denmark and 11 % of Finland. LONG CUSTOMER RELATIONSHIPS

Vitec formed in 1985 and has since 1998 been a public company based on software solutions. With our products and related services, we act in the long term, build trust and create confidence among our customers. We create value for customers through a customer-focused approach and a well-tailored program offering that supports, develops and increases the profitability of our customers' daily work processes.

BUSINESS MODEL WITH RECURRING REVENUE

Recurring contract revenues are a central part of the Vitecs business model. Recurring contract revenue includes recurring revenues for the use of our software, access to our customer service and new refined versions of our software. Technology trend today is for a more modern model in which the functionality of the software is delivered over the Internet. This movement means that our offer is extended to include the operation of the software and the data storage. This increases the proportion of recurring revenue contracts, which gives us a stable, predictable and recurring revenue volume while providing our customers with a secure overall offering. A business model with a high proportion of recurring revenue also gives us a good annual operating capital and reduces sensitivity to economic downturns. High proportion of recurring revenue contracts also provide strong cash flows, which is an important prerequisite for continued growth.

PROFITABLE GROWTH

Vitec has a pronounced growth strategy with a combination of acquisitions and organic growth. Growth is important because it gives us energy and creates new opportunities. Acquisitions are also important to achieve cost and volume advantages and are also strategically important for the expansion to new markets and niches. Our acquisitions were initially made in Sweden in the niches in which we first appeared, but has gradually expanded to include new niches and new markets. Today we are a software company that offers specific business throughout the Nordic market and our business is established in Sweden, Norway, Finland and Denmark. We identify and evaluates acquisition targets in all Nordic countries. During our long history, we have been in constant growth and every year improved our results. We have, however, held fast to our strategy to operate within specialized software niches to create sustainable and

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KEY FIGURES

2015 jan-sep 2014 jan-sep 2014 jan-dec

Net sales (TSEK) 448 318 350 443 491 956

Business Area Estate Agent (TSEK) 155 482 140 736 185 750 Business Area Real Estate (TSEK) 101 574 96 934 134 315 Business Area Energy (TSEK) 17 280 17 112 22 672 Business Area Media (TSEK) 8 222 17 955 21 759 Business Area Health (TSEK) 46 058 29 536 43 627 Business Area Auto (TSEK) 44 987 18 138 28 302 Business Area Finance & Insurance (TSEK) 74 359 29 648 55 004

Shared (TSEK) 356 384 527

Growth (%) 28% 26% 32%

Profit after financial items (TSEK) 67 777 42 399 64 545 Profit after tax (TSEK) 53 011 30 245 49 065 Profit after tax attributable to owners of the parent (TSEK) 53 011 30 245 49 065 Profit growth attributable to owners of the parent (%) 75% 31% 62%

Profit margin (%) 12% 9% 10%

Operating margin (%) 16% 13% 14%

Total assets (tkr) 806 803 679 231 772 901

Solidity (%) 32% 35% 34%

Equity ratio after full conversion (%) 33% 38% 37% Degree of indebtedness (times) 2,14 1,61 1,70

Return on capital employed (%) 21% 16% 20%

Return on equity (%) 29% 12% 23%

Sales per employee (TSEK) 1 073 1 065 1 430 Value added per employee (TSEK) 887 850 1 164 Personnel expenses per employee (TSEK) 592 588 801 Average numbers of employees (number) 418 329 344 Adjusted shareholders' equity per share (JEK) (SEK) 43,66 41,35 44,24

Earnings per share (SEK) 9,02 5,47 8,76

Earnings per share after dilution (SEK) 8,93 5,18 8,39 Paid dividends per share* (SEK) 3,35 2,75 2,75 Cash flow per share (SEK) 17,66 15,08 22,00

P/E 20,4 20,4 15,1

P/JEK 6,64 3,34 2,99

P/S 2,36 1,72 1,51

Calculation bases:

Results used for the calculation of earnings per share (TSEK) 53 011 30 245 49 065 Cash flow for the calculation of cash flow per share (TSEK) 103 824 83 402 123 220 Average number of shares (weighted average) (psc) 5 879 338 5 529 865 5 600 681 The number of shares after dilution (psc) 5 954 174 5 896 624 5 886 395 The number of shares issued on the closing date (psc) 5 879 338 5 798 327 5 879 338 Share price at end of period (SEK) 290 138 132,5

* Values for rolling 12 months.

Vitec Software Group is a software company that offers industry specific business applications on the Nordic market. The Company, with operations in Sweden, Norway, Finland and Denmark is growing in the mature part of the software industry by consolidating vertical software segments. Clients include facility management companies, construction and real estate companies, banks and insurance companies, utilities and energy traders, healthcare companies, car spare part dealers and newspaper companies. Vitec is listed on Nasdaq OMX Stockholm.