Data Respons : 01/26/2017 DAT QuarterlyReport Q4 2016

Digitalisation of the industries of tomorrow Q4 2016

Q4: QUARTERLY REPORT 2016

KEY FIGURES (NOK mil	lion)
Q4 16	Q4 15
Revenue	301.6	268.2
EBITDA	25.5	14.4
EBIT	22.6	13.2
Profit before tax	24.2	10.1

summary of q4 2016

• Revenue of NOK 302 million

• EBITDA of NOK 25.5 million

• Order intake of NOK 334 million

  REVENUE PER QUARTER (NOK million)

  302 268 229 Q4'14 Q4'15 Q4'16

• Operating cash flow of NOK 46,5 million

• Earnings per share NOK 0.35

q4 2016

In the report, we compare with figures from the same period in 2015 (in brackets).

and good discipline, resulting in an improved EBITDA margin in fourth quarter.

REVENUE PER SEGMENT (NOK million)

REVENUE PER COUNTRY

6% Norway

14%

28% Sweden

Germany

52% Denmark

EBITDA PER QUARTER (NOK million)

25.5 18.3 14.4 Q4'14 Q4'15 Q4'16

Revenue in the fourth quarter was NOK 302 million (268), a growth of 12 %. EBITDA was NOK 25.5 million (14.4). The order intake dur- ing the quarter totalled NOK 334 million (252). Data Respons had a cash flow from operating activities of NOK 46.5 million (18.9).

Q4 16	Q4 15
R&D Services	176.2	114.2
Solutions	126.0	155.3
Eliminations	-0.6	-1.3
Group	301.6	268.2

Data Respons achieved strong revenue devel- opment in the fourth quarter, driven by solid performance in the R&D Services segment with a growth of 54 %. The company continued the positive development internationally, while the Solutions segment declined in the same period mainly due to lower deliveries in Maritime, Oil

& Gas industry and associated sectors.

Profitability increased in the fourth quarter for both business segments. In R&D Services, the profitability improvement was driven by high overall utilisation, more scalability and good inflow of assignments and large turn- key R&D projects. In the Solutions segment, the decline in revenue has been compensat- ed with lower costs due to several initiatives

The positive momentum is due to the strong position within IoT, industrial digitalisation and embedded technologies. Major contract signings came from key customers within Medical, Smart grid / Smart home, Transport

& Automotive, Telecom, Defence and Indus- try & Automation.

2016

Revenue for 2016 was NOK 1040 million (964), a growth of 8 %. EBITDA was NOK 74.4 million (58.5). In 2016 Data Respons has ex- penced NOK 5.4 million in transaction cost in relation to the acquisition of MicroDoc. The order intake for 2016 totalled NOK 1 129 mil- lion (941). The order backlog ended on NOK 781 million (690). Data Respons had a cash flow from operating activities of NOK 79.4 million (49.4). The total number of employees at December 31, 2016 was 500 (404).

Data Respons is well-positioned as a leading full-service IoT, digitalisation and embedded technology company and the positive devel-

"

Our strong position within industrial digitalisation, embedded and IoT gave RECORD RESULTS in 2016, says CEO Kenneth Ragnvaldsen

5%

opment in the company's strategic markets

KEY FIGURES (NOK million)
2016	2015
Revenue	1 039.6	963.6
EBITDA	74.4	58.5
EBIT	68.4	54.7
Profit before tax	68.8	48.5

has continued during 2016.

Data Respons acquired the German company MicroDoc, with headquarters in Munich in

The Board of Directors propose to distribute

a dividend of NOK 1.00 per share fo1r0%250%16. Following the resolution by the annu1a0%l gen-30%

30%

eral meeting on Thursday April 27, 2017 the

DAT share will be traded ex-dividend on55A%pril

55%

September 2016. The company will strength-

en Data Respons position within SW tech- nology, digitalisation and IoT. MicroDoc was included in Data Respons consolidated state- ment of accounts from September and con- tributed with a revenue of NOK 46 million in R&D Services in 2016.

Revenue growth in the international opera- tions has improved both the scalability and profitability. Sweden strengthened its position as the largest geographical region in the com- pany with 53 % of total revenue in 2016, while 28 % of the total revenue came from Norway. In the fourth quarter, Germany accounted for 21 % of the revenue in Data Respons.

balance sheet and liquidity

The company's book value of total assets at the end of the fourth quarter was NOK 786 million. The company's equity was NOK 283 million, resulting in an equity ratio of 36 %. Current assets amounted to NOK 339 million and current liabilities were NOK 296 million.

At December 31, 2016, the non-current as- sets amounted to NOK 447 million, of which deferred tax assets of NOK 11 million and other intangible assets including goodwill was NOK 425 million.

The company's cash flow from operations in 2016 was NOK 79.4 million (49.4). The cash

balance on December 31, 2016 was NOK 63 million (of which NOK 5 million is restricted) and the company had interest bearing debt of NOK 95 million. Strong cash flow from opera- tions has contributed to a solid financial posi- tion at December 31, 2016.

28, 2017.

operating segments

r&d services

Revenue in the fourth quarter was NOK 176 million (114), a growth of 54 %. EBITDA be- fore corporate cost was NOK 20.1 million (7.2). The order intake totalled NOK 171 mil- lion (126) during the quarter.

The company experienced strong growth and profitability in R&D Services in the fourth quarter, due to an increasing customer base, high utilisation and good inflow of new as- signments and turnkey R&D projects. The unique competence base in the embedded, digitalisation and IoT technologies provides increasing opportunities going forward.

Data Respons continues to leverage on its leading position in offering customers access to highly skilled specialists and project teams with a broad range of expertise from future oriented technologies areas like automation, IoT, digitalisation and different embedded solution disciplines. A strong competence platform is strategically important in order to develop new recurring solution customers and to stand out as a complete solutions pro- vider in the market.

In September 2016, Data Respons acquired 100 % of the shares in MicroDoc Computer- systeme GmbH, a SW technology company in Germany with headquarters in Munich. The company has more than 50 specialists in SW development, Java and system design as well as SW solutions for IoT, mobile/network infra- structure and embedded applications.

REVENUE (NOK million)

1040 964 849 2014 2015 2016

EBITDA (NOK milli	on)
57.6 2014	58.5 2015	74.4 2016

REVENUE BY INDUSTRY

TRANSPORTATION 25%

INDUSTRY/AUTOMATION 17 %

TELECOM 16 %

DEFENCE 11 %

MEDICAL 9 %

OIL SERVICES 8 % MARITIME 5 %

PUBLIC 3 %

OTHER 7 %

0,000000

REVENUE PER SEGMENT (NOK million)

2016 2015

R&D Services 558.3 406.8

Solutions 484.2 559.3

Eliminations -2.9 -2.6

Group 1 039.6 963.6

"

The DIGITALISATION TREND is an attractive growth opportunity for our company since it involves most of our current market areas.

FINANCIAL CALENDAR 2017

DATE EVENT

26.01.2017 Presentation of Q4 2016

27.04.2017 Presentation of Q1 2017 27.04.2017 Annual General Meeting 14.07.2017 Presentation of Q2 2017

20.10.2017 Presentation of Q3 2017

31.01.2018 Presentation of Q4 2017

LARGEST SHAREHOLDERS (31.12.16) SHAREHOLDER HOLDING SHARE CUSTOM HOLDING AS 16 087 279 32.68 %

MP PENSJON PK 4 315 055 8.77 %

STOREBRAND VEKST 2 948 619 5.99 %

NORDEA NORDIC SC FUND 2 669 746 5.42 %

Revenue for 2016 was NOK 558 mil- lion (407), a growth of 37 %. EBITDA be- fore corporate costs was NOK 59.1 million (30.9). The order intake for 2016 totalled NOK 621 million (403). The order back- log ended on NOK 201 million (144).

solutions

Revenue in the fourth quarter was NOK 126 million (155), a decline of 19 %. EBITDA before corporate cost was NOK 9.3 million (9.0). The order intake totalled NOK 164 mil- lion (125) during the quarter.

The decline in revenues in Solutions was mainly due to the weak market conditions in the Maritime, Oil & Gas industry and associ- ated sectors, following the trend from earlier of the year. Several cost-reducing initiatives

provider of smart devices, embedded and industrial IoT solutions in the Nordic region. The company has a strong and increasing base of recurring solution customers and has a solid order backlog. Solution deliveries secure long-term and strategically important cus- tomer relationships and provide a significant potential for future growth.

In order to meet the continued demand for increased SW content, connectivity, higher performance and more functionality, many of our customers focus on strategic partnerships. Our customers can get access to special- ist competence, shorter time-to-market and achieve lower costs of ownership by using Data Respons. The long-term profitability is expected to improve based on a competence oriented and focused business model. This includes strategic relationships with custom-

NORDNET BANK AB 418 539 0.85 %

SKANDINAVISKA ENSKILDA 401 568 0.82 %

VENTOR AS 384 257 0.78 %

EUROVEST AS 350 000 0.71 %

METZLER EURO SMALL CAP 335 000 0.68 %

Total 20 largest 39 632 231 80.51 %

Total no. of shares 49 228 794 100 %

Total others 9 596 563 19.49 %

JP MORGAN HB SWED	2 090 282	4.25 %	have been implemented in Solutions in 2016,	ers in main markets, higher SW content, more
JP MORGAN AKTIA NORDIC	2 062 266	4.19 %	which has compensated the impact on profit-	value add services and global partners.
VARNER INVEST AS	1 500 000	3.05 %
STOREBRAND NORGE I	1 017 434	2.07 %	ability from declined revenues. Although the
HERALD INVESTMENT TRUST	965 676	1.96 %	market situation is not expected to change in	Revenue for 2016 was NOK 484 million
CARNEGIE INV. BANK AB	891 833	1.81 %	the near term, there are some early signs that	(559), a decline of 13 %. EBITDA before cor-
VPF DNB SMB	788 365	1.60 %	the market is bottoming out during 2017.	porate costs was NOK 31.3 million (37.2).
NHO - P665AK	741 873	1.51 %	The order intake for 2016 totalled NOK 508
VPF STOREBRAND OPTIMA	684 013	1.39 %	During the year, the growth internationally	million (538). The order backlog ended on
HSBC TTEE MARLB EUR	548 709	1.11 %	and the strong decline in Norway has led to a	NOK 581 million (546).
ALTEA PROPERTY DEV.	431 717	0.88 %

change in the customer mix towards new cus- tomers in other sectors than the Maritime, Oil

& Gas industry and to other geographical mar- kets. The order intake follows the same pattern as the revenue, with positive development in- ternationally while the Norwegian region still is weak. Major orders came from key customers in Medical, Telecom, Transportation, Defence and Industry & Automation. The pipeline of larger solution contracts in the industrial IoT area has increased during the quarter.

Data Respons is positioned as the leading

market development

Data Respons has a solid and well balanced customer base within several industry sectors, based upon our strong competence within IoT, digitalisation and embedded technologies. Our geographical footprint and more 30 years of experience have given the company relevant vertical competence within these markets.

The customer list includes world-leading com- panies such as ABB, Analogic, Assa Abloy,

SHARE PRICE PERFORMANCE

20 18 16 14 12 10 01.01.2016 31.12.2016

share information

The share price started at NOK 13.40 at the beginning of the year and ended at NOK 18.30 at December 31, 2016. A dividend of NOK 1.00 per share was paid in April 2016. The Data Respons share is listed at OB Match, and 17.5 million shares were traded and 4 540 transactions were registered at the Oslo Stock Exchange during the year. Data Respons had 1121 shareholders at December 31, 2016. Data Respons ASA owned no treasury shares at December 31, 2016. The total number of outstanding shares at December 31, 2016 was 49 228 794.