CLX Communications AB (publ): Year-End Report, July 2015 - December 2016

Sixth quarter, October - December 2016

• Net sales increased by 145 percent to SEK 669.6 million (273.5). Organic growth was 35 percent.
• EBITDA amounted to SEK 68.1 million (27.9).
• EBITDA excluding items affecting comparability ¹ (adjusted EBITDA) amounted to SEK 76.0 million (29.4).
• EBIT amounted to SEK 46.5 million (26.0).
• Net profit for the quarter amounted to SEK 53.2 million (20.0).
• Diluted earnings per share amounted to SEK 1.09 (0.53).

July 2015 - December 2016

• Net sales increased by 53 percent to SEK 2,333.9 million (1,361.1). Organic growth was 28 percent.
• EBITDA amounted to SEK 161.9 million (134.5).
• EBITDA excluding items affecting comparability¹ (adjusted EBITDA) amounted to SEK 238.0 million (141.7).
• EBIT amounted to SEK 112.5 (126.7).
• Net profit for the period amounted to SEK 111.6 million (82.3).
• Diluted earnings per share amounted to SEK 2.56 (2.27).

Significant events during the quarter

• On December 5, an extraordinary general meeting resolved to introduce a long-term incentive scheme for senior executives and key employees within CLX, by issuing a maximum of 1,500,000 warrants with exercise after 3/4/5 years. If fully exercised, dilution will be approximately 3 percent.
• On December 20, CLX completed the acquisition of Sinch AB. Sinch is a leading developer of solutions for cloud-based voice communications and, since it was founded in 2014, has become a successful supplier to several global app and web companies. The purchase price was paid with SEK 55.0 million in cash and through a non-cash issue of 885,797 shares in CLX at a price of SEK 94.75, giving a purchase price on a debt-free basis of SEK 138.9 million.

Significant events after the end of the period

• Under the incentive scheme adopted on December 5, nearly 1,200,000 warrants have been subscribed for by senior executives and key employees within CLX. The scheme has thus achieved a subscription rate of approximately 80%. Participants outside the US and the UK have paid a premium of SEK 9.56 per warrant, while participants in the US and the UK received their warrants without any monetary compensation. Through this CLX has raised SEK 7.3 million.
• An acquisition of Xura Secure Communications GmbH was completed on February 16 and will be included in the consolidated accounts from that date. The purchase price was USD 15.5 million on a cash- and debt-free basis. Xura is based in Munich and had 16 employees at 31 December 2016. Xura had sales in 2016 of approximately EUR 25.5 million with EBITDA of approximately EUR 2.1 million. The acquisition is being financed with expanded credit facilities of GBP 12.5 million.

1) For a specification of items affecting comparability, see the table on page 3.

Invitation to report presentation by phone or online

The report will be presented at a phone conference at 09.30 CET on February 17.
To participate in the report presentation by phone, please call:

SE: +46-8-566 425 08
UK: +44-2030 089 807
US: +1-855-753 2235

To watch the presentation online: https://wonderland.videosync.fi/clx-communications-q4-report-2016