Interim Report Pricer AB January – September 2016

Improved operating margin, cash flow and order intake
Third quarter 2016

  · Net sales of SEK 210.0 M (304.3), a decrease of 31 percent compared to the
same period last year
  · Operating profit of SEK 29.0 M (31.3) and profit for the period of SEK 23.6
M (20.7)
  · Cash flow from operating activities improved to SEK 68.8 M (24.6)
  · Order intake of SEK 145 M (119), an increase of 22 percent compared to the
same period last year
  · The backlog is approximately SEK 100 M (130), of which the majority is
expected to be invoiced in the fourth quarter of 2016
  · Andreas Renulf has been appointed as the new President and CEO of Pricer AB
and will take up his position on January 1, 2017. Charles Jackson, who has been
acting CEO since May this year, will continue in this role until Andreas Renulf
takes up his position and will subsequently return to his role as Deputy CEO,
responsible for strategy, sales and marketing.

+------------------+------+------+---------+---------+----------+
|Amounts in SEK M  |  Q 3 |  Q 3 |9 months |9 months |Full year |
|unless otherwise  |      |      |         |         |          |
|stated            |      |      |         |         |          |
+------------------+------+------+---------+---------+----------+
|                  | 2016 | 2015 |    2016 |    2015 |     2015 |
+------------------+------+------+---------+---------+----------+
|Order intake      |  145 |  119 |     603 |     684 |      792 |
+------------------+------+------+---------+---------+----------+
|Net sales*        |210,0 |304,3 |   569,6 |   686,6 |    864,8 |
+------------------+------+------+---------+---------+----------+
|Gross margin*     |29,7% |21,7% |   27,8% |   20,8% |    21,8% |
+------------------+------+------+---------+---------+----------+
|Operating profit  | 29,0 | 31,3 |    47,5 |    40,4 |     47,8 |
+------------------+------+------+---------+---------+----------+
|Operating margin  |13,8% |10,3% |    8,3% |    5,9% |     5,5% |
+------------------+------+------+---------+---------+----------+
|Cash flow from    | 68,8 | 24,6 |   110,7 |     8,7 |    101,4 |
|operating         |      |      |         |         |          |
|activities        |      |      |         |         |          |
+------------------+------+------+---------+---------+----------+
|Profit for the    | 23,6 | 20,7 |    39,3 |    29,1 |     37,0 |
|period            |      |      |         |         |          |
+------------------+------+------+---------+---------+----------+
|Earnings per share| 0,21 | 0,19 |    0,36 |    0,26 |     0,34 |
|(SEK)             |      |      |         |         |          |
+------------------+------+------+---------+---------+----------+

* See Note 1 in the complete version of the interim report.


Comments from acting CEO, Charles Jackson
During the third quarter, both gross margin and operating margin showed
improvement compared to the same period last year. An achievement despite the
fact that sales fell short of the record high reported in the corresponding
quarter last year. The stronger gross margin, which also contributed to a higher
operating margin, is an effect of reduced costs in the supply chain and a
continued favorable product mix. Third quarter sales consisted of less
significant but more distributed projects which has also had a positive impact
on gross margin.

Third quarter order intake was somewhat higher than in the corresponding quarter
of last year and was spread between a large number of customers and across
several geographical areas, however France continues to stand out as the biggest
single market for Pricer. Looking ahead, we anticipate continued high activity
from our existing customer base. As previously reported, deliveries to our
Norwegian partner Strongpoint for the grocery retailer Bunnpris have been
delayed but is expected to commence in the fourth quarter this year. Deliveries
to a number of franchise stores in the French grocery retail chain Système U
were started as planned during the third quarter, contributing to both order
intake and net sales. Deliveries to this customer are expected to continue
throughout 2016 and 2017.

We believe that the lack of new major customer projects to our existing
portfolio of customer deployments is temporary. The digitization of retail
clearly includes optimized solutions for price updating, but for our customers
the development also involves increased considerations in terms of
infrastructure and information systems that prolongs decision times. The
requirements for scalability, durability and speed continuously increases, which
specifically favors Pricer.

The third quarter of 2016 was characterized by continued strong demand in France
and a consistently high level of activity in Europe as well as both North and
South America where the number of pilot programs continue to increase. The
rising number of pilot installations for store digitization reinforce our
impression that major procurements in the years ahead will include systems for
electronic shelf labels that support solutions for both shelf edge price and
data updating as well as product positioning. Grocery retail, which currently
makes up Pricer’s strongest segment, will continue to be part of this trend and
serve as a platform for increased growth in closely related segments such as
electronics and Do-it-yourself chains.

Another interesting trend worth pointing out is that we see an increase in
partial store installations where the retailers are deploying electronic shelf
labels system specifically in one or two departments of the store to update
price information more often. Recent deal activity includes, for example, a
deployment in fruit and vegetable as well as fish sections. This trend
highlights the need to use price optimization to reduce waste and improve
profitability.

I am particularly proud of our strong cash flow as a result of the structural
improvements we have achieved in the production and delivery processes during
the last year. This makes us well poised to add-on major customer projects. The
strengthened financial position now gives Pricer the ability to accelerate the
development of products and services in parallel with a continued focus on sales
- and marketing activities in numerous strategic markets.


For further information, please contact:
Charles Jackson, acting CEO, or Helena Holmgren, CFO, Pricer AB: +46 8 505 582
00.


This information is information that Pricer AB is obliged to make public
pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The
information was submitted for publication, through the agency by the contact
persons set out above, at 8:30 CET on October 28, 2016.