Anoto : REPORT JANUARY – JUNE 2018

• Net Sales in the period amounted to MSEK 60 (95) and Net Sales for the quarter were MSEK 32 (49).
• Operating Profit in the period was MSEK 2 (-25) and Operating Profit for the quarter was MSEK 1 (7)
• The decline in Net Sales is primarily attributable to Forms customers timing their pen orders to coincide with the availability of enterprise quantities of the new Anoto pen (AP-701). In addition, Anoto's pricing policy change in the Forms business has also contributed to this deferral of revenue. The new model lowers upfront hardware costs and establishes recurring revenue streams associated with hardware, software, and Anoto's proprietary microdot pattern.
• This pricing model transition required us to turn down numerous renewal requests based on the old pricing scheme with an unavoidable impact on revenue but the Group expects a substantial increase in revenue in coming quarters with lift provided by rapid adoption of the new pen and broad acceptance of the strategically sound new pricing policy.
• While year-over-year Net Sales for the period decreased by MSEK 35, the Group made an Operating Profit of MSEK 2 (-25) due to higher gross margins and lower operating costs.
• Gross margin in the period increased to 54% (39%) as a result of better margins in the Notetaking business and licensing revenue growing to 23% (18%) of the overall mix.
• Overhead costs in the period were MSEK 31, significantly down from the prior year (MSEK 62), due to the restructuring and cost-reduction efforts across all operations.

For further information, please contact:

Joonhee Won, CEO

CALENDAR 2018

Q3 Report - 31 October, 2018

For more information about Anoto, please visit www.anoto.com or email ir@anoto.com

Anoto Group AB (publ), Reg.No. 556532-3929, Flaggan 1165, 116 74 Stockholm

Tel. +44 (0) 1256 774400

This information is information that Anoto Group AB is obliged to make public pursuant to the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:45 CET on July 17, 2018.