Interim report for the period January 1 - September 30, 2020

July - September

· Net sales amounted to SEK 68.4 (63.4) million, an increase of 7.9% compared to the same period last year.

· Adjusted EBITDA earnings amounted to SEK 12.0 (9.0) million, adjusted for acquisition-related events & restructuring costs during 2019.

· EBITDA earnings amounted to SEK 12.0 (12.8) million.

· Adjusted EBITDA margin amounted to 17.6% (14.2%), adjusted for acquisition-related events & restructuring costs during 2019.

· EBITDA margin amounted to 17.6% (20.1%).

· Adjusted profit after tax amounted to SEK 1.8 (-0.1) million, adjusted for acquisition-related events & restructuring costs during 2019.

· Profit after tax amounted to SEK 1.8 (3.6) million.

· Earnings per share amounted to SEK 0.22 (0.47).

· Total cash flow amounted to SEK 0.2 (4.7) million.

January - September

· Net sales amounted to SEK 224.5 (169.0) million, an increase of 32.8% compared to the same period last year.

· Adjusted EBITDA earnings amounted to SEK 38.8 (20.3) million, adjusted for acquisition-related events & restructuring costs during 2019.

· EBITDA earnings amounted to SEK 38.8 (22.3) million.

· Adjusted EBITDA margin amounted to 17.3% (12.0%), adjusted for acquisition-related events & restructuring costs during 2019.

· EBITDA margin amounted to 17.3% (13.2%).

· Adjusted profit after tax amounted to SEK 10.3 (3.1) million. adjusted for acquisition-related events & restructuring costs during 2019.

· Profit after tax amounted to SEK 10.3 (5.1) million.

· Earnings per share amounted to SEK 1.26 (0.66).

· Total cash flow amounted to SEK -1.3 (2.5) million.

CEO's comments

SDS' third quarter has been eventful. We have continued to win business from both existing and new customers. It is rewarding to see that we sold two new systems to completely new customers towards the end of the quarter. Although we have felt some impacts of the pandemic, we have continued to maintain a good business pace and performed very well. We have also carried out a very successful spread issue that was oversubscribed three times by 4,500 investors. This means that a few weeks after the issue, the net number of shareholders has increased by more than 3,000 at the same time as the company will receive SEK 26.5 million in capital.

The capital raising means that we can continue to work with the growth strategy we have previously presented. It also enables us to continue to be part of the consolidation in the market that we are convinced will continue. The acquisition of eServGlobal was a large and important step in our growth journey and we are now ready to take the next step.

The work with eServGlobal's customers follows a continued positive trend and we are now nearing the end of the adaptation of the organization. Customers continue and deepen their discussions with us, which points to more possible new deals when the migrations are completed. During this quarter, another customer in Botswana decided on migration. The previous assessment from 2019 was that it will take three years to migrate all customers to SDS products. This still looks realistic.

Compared with the corresponding quarter last year, sales increased by 8% to SEK 68 million, while EBIT was SEK 4.7 million. This is despite the weakening dollar exchange rate having a negative impact on earnings of SEK 1.6 million. Our currency exposure to the dollar is limited by the fact that we also have most of our expenses in dollars. The beginning of the third quarter is often a quiet time in terms of sales, after which we usually see an acceleration towards the end. This was also the case this year and when we sum up the third quarter, we established a satisfactory order intake. In addition, our pipeline, which consists of recurring orders from existing customers as well as from new potential customers, has continued to grow.

It is particularly exciting that during the quarter we received an agreement with a customer in Kenya, where there is great potential for a future opportunity for additional sales based on our new product for distribution and sales of both electronic and physical products. The customer is one of Africa's most influential mobile operators and we won the project in direct competition with our biggest competitors. Another interesting development in the context of the coronavirus pandemic is the three new customers for our microcredit service for the mobile operators' resellers. Here, we have built up knowledge over the last few years from the business in four relatively small markets and now have services about to be launched in three larger markets. Although this is not immediately apparent in the figures, it is a major step forward in both our fintech investment and our increase in recurring revenues.

As previously stated, as an already virtual company have been minimally affected by the coronavirus pandemic. The current work from home setup works well for our teams, and we have no plans to return to the office this year. However, our Nordic distribution business has seen a weakening through the pandemic, which persists even though we are still making a profit and turning over more than when we bought the business in 2018.

The capital from the rights issue gives us the opportunity to invest more in building a pipeline of potential acquisition objects. We have dedicated capacity to analyze the market in a structured way to find objects and to carry out analysis faster and better to qualify and carry out due diligence before any bids.

Furthermore, the capital from the recent rights issue enables a broadening of our product offering regarding cloud-based services, while we further increase the pace of our development work. With that said, we are continuing to develop a world-leading portfolio of products which, through digitization of today's manual business flows, increases revenue and reduces costs for sales and distribution within the telecom vertical. We are now focusing primarily on the endpoints of the value chain with more AI-assisted analysis to utilize the data from the 15 billion transactions our systems produce each year.

Tommy Eriksson
CEO, Seamless Distribution Systems AB"

For more information contact:
Martin Schedin
Chief Financial Officer
+46 70 438 14 42
martin.schedin@seamless.se

This information is the information that Seamless Distribution Systems AB (publ) is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication through the agency of the above contact person on October 22nd, 2020 at. 08.30 CEST.

About Seamless Distribution Systems AB (SDS)
SDS is a Swedish software company group that provides solutions and services for digital sales and distribution to private consumers through mobile operators in emerging countries. The company offers its corporate customers a comprehensive solution for digital distribution and electronic transactions processing. SDS acquired eServGlobal in July 2019. The SDS Group now has customers in all parts of the world, with a footprint in more than 50 countries, reaching over 500 million mobile users through more than 2,000,000 active point-of-sales. SDS has approximately 220 employees in Sweden, France, Romania, Belgium, Ghana, Nigeria, USA, Pakistan, India, Indonesia, South Africa, Ecuador and the United Arab Emirates. With over 30 years of experience, SDS focuses on high-level customer satisfaction and efficient operations. SDS manages over 15 billion transactions annually, worth more than 14 billion US Dollars and enables the growing population of emerging countries to become part of the mobile revolution.

SDS shares are listed on Nasdaq First North Premier.
The company's Certified Adviser is FNCA Sweden AB, phone number 08-528 00 399, email: info@fnca.se


SDS får genombrottsorder värd 14 MSEK i Kamerun

Seamless Distribution Systems AB (SDS) har erhållit en initial order från en av Kameruns största mobiloperatörer, som även tillhör Afrikas största operatörsgrupp. Ordern är den första SDS tagit i landet och har ett initialt värde på 14 MSEK. Utöver det initiala ordervärdet förväntas återkommande serviceintäkter tillkomma framgent.


SDS receives breakthrough order valued SEK 14 million in Cameroon

Seamless Distribution Systems AB (SDS) has received an initial order from one of Cameroon's largest mobile operators, which also belongs to Africa's largest operator group. It is the first order SDS has received in the country and has an initial value of SEK 14 million. In addition to the initial order value, recurring service revenues can be expected in the future.


SDS håller livesänd pressträff med anledning av publicering av delårsrapport

SDS kallar till en livesänd pressträff torsdagen 22 oktober klockan 15.00. Under pressträffen kommer SDS vd Tommy Eriksson att gå igenom bolagets delårsrapport för årets tredje kvartal.




SDS deltar på Investerarjakten

Idag kl 13.00 kommer SDS att delta i det livesända eventet Investerarjakten. Bolagets vd Tommy Eriksson kommer att presentera bolagets utveckling och framtidsplaner. Presentationen inleds kl 13.00 och kommer att sändas i Direkt Studios Youtube-kanal, i Facebook-gruppen Aktier samt på Investerarbrevet.se.


Spridningsemissionen i SDS kraftigt övertecknad - tillförs cirka 26,5 MSEK samt cirka 4 500 nya aktieägare

DETTA PRESSMEDDELANDE FÅR INTE OFFENTLIGGÖRAS, PUBLICERAS ELLER DISTRIBUERAS, DIREKT ELLER INDIREKT I ELLER TILL AUSTRALIEN, HONGKONG, JAPAN, KANADA, NYA ZEELAND, SYDAFRIKA, SYDKOREA, SCHWEIZ, SINGAPORE, USA ELLER NÅGON ANNAN JURISDIKTION DÄR SÅDAN ÅTGÄRD HELT ELLER DELVIS ÄR FÖREMÅL FÖR LEGALA RESTRIKTIONER. DETTA PRESSMEDDELANDE UTGÖR INTE ETT ERBJUDANDE ATT FÖRVÄRA VÄRDEPAPPER I SEAMLESS DISTRIBUTION SYSTEMS AB (PUBL). SE ÄVEN AVSNITTET "VIKTIG INFORMATION" NEDAN.

Det slutgiltiga utfallet i Seamless Distribution Systems AB (publ):s ("SDS" eller "Bolaget") spridningsemission som offentliggjordes den 16 september 2020 ("Erbjudandet") visar att anmälningar för teckning av cirka 2 111 000 aktier inkommit, motsvarande cirka 98,4 MSEK eller 372 procent av de erbjudna aktierna. Teckningskursen har fastställts till 46,62 SEK per aktie och antalet aktier i Erbjudandet har fastställts till 567 835. Styrelsen i Bolaget har idag beslutat om tilldelning i enlighet med de tilldelningsprinciper som framgår i det informationsmemorandum som offentliggjordes den 16 september 2020.


The directed issue of shares to the public in SDS heavily oversubscribed - the proceeds amount to approximately 26.5 MSEK and SDS welcomes approximately 4,500 new shareholders

THIS PRESS RELEASE IS NOT INTENDED FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, HONG KONG, JAPAN, CANADA, NEW ZEALAND, SOUTH AFRICA, SOUTH KOREA, SWITZERLAND, SINGAPORE, THE UNITED STATES OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION OF THIS PRESS RELEASE WOULD BE SUBJECT TO LEGAL RESTRICTIONS. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OF ANY SECURITIES OF SEAMLESS DISTRIBUTION SYSTEMS AB (PUBL). SEE ALSO SECTION "IMPORTANT INFORMATION" BELOW.

The final outcome in Seamless Distribution Systems AB (publ)'s ("SDS" or the "Company") directed issue of shares to the public, that was announced on 16 September 2020 (the "Offering"), shows that applications for subscription of approximately 2,111,000 shares have been received, corresponding to approximately 98.4 MSEK or 372 percent of the shares in the Offering. The subscription price in the Offering has been set to 46.62 SEK per share and the number of shares in the Offering has been set to 567,835. The Board of Directors of SDS has today resolved on allocation of shares in accordance with the allocation principles that was set out in the information memorandum that was made public on 16 September 2020.


SDS erhåller order värd 7 miljoner SEK från en ledande mobiloperatör i Botswana.

SDS har tagit en order värd 7 miljoner SEK från en ledande mobiloperatör i Botswana. Affären kommer från en kund som ingick i förvärvet av eServGlobal i juni 2019 och avser plattformsbyte från PayMobile till SDS:s flaggskeppsprodukt ERS 360 samt ett supportavtal som löper över fem år.


SDS receives order valued at SEK 7 million from a leading mobile operator in Botswana

SDS has received an order valued at SEK 7 million from a leading mobile operator in Botswana. The order, obtained from a customer that was part of the acquisition of eServGlobal in June 2019, refers to a platform switch from PayMobile to SDS's flagship product ERS 360 and a support agreement that will run for a period of five years.


SDS får order värd 4 miljoner SEK från den största mobiloperatören i Tunisien

Seamless Distribution Systems (SDS) har erhållit en ny kund i Tunisien och samtidigt utökat sin marknadsnärvaro i regionen. Ordern involverar mjukvarulösningar som kommer att optimera mobiloperatörens distributionskedja, från onboarding av kund till distribution av produkt. På så sätt kommer snabbare leveranstider att uppnås. Ordern är värd 4 miljoner SEK och intäkterna förväntas redovisas från tredje kvartalet 2020. Ordern kommer att bidra till återkommande intäkter under kommande år.


SDS receives order worth SEK 4 million from the largest mobile operator in Tunisia

Seamless Distribution Systems (SDS) has acquired a new customer in Tunisia, expanding its market presence in the region. Valued at SEK 4 million, the order is for software solutions that will optimize the supply chain for the mobile operator from customer onboarding to product distribution to achieve fast turnaround times. Revenue from the order is expected to be recognized from the third quarter 2020 and the order will contribute to recurring revenues over years to come.


Genombrottsorder på 7,5 MSEK från en av världens största telekomgrupper

Seamless Distribution Systems (SDS) har fått en genombrottsorder värd 7,5 miljoner SEK från en av världens största teleoperatörsgrupper. Ordern har erhållits via SDS:s kenyanska partner, Baran Telecom Networks, och avser leverans av en fullskalig supply chain-lösning. Ordern är den första till denna kund och innebär, förutom expansion till en ny marknad med framtida ytterligare möjligheter, att SDS avsevärt stärker sin kundbas och produktportfölj.


Breakthrough order of SEK 7.5 million from one of the world's largest telecom groups

Seamless Distribution Systems (SDS) has received a breakthrough order worth SEK 7.5 million from one of the world's largest telecom operator groups. The order was received through SDS's Kenyan partner, Baran Telecom Networks, and involves the delivery of a full-scale supply chain solution. The order is the first from this client and means, besides expanding into a new market with many future opportunities, that SDS significantly strengthens its client base and product portfolio.


Styrelsen för SDS beslutar om spridningsemission

DETTA PRESSMEDDELANDE FÅR INTE OFFENTLIGGÖRAS, PUBLICERAS ELLER DISTRIBUERAS, DIREKT ELLER INDIREKT I ELLER TILL AUSTRALIEN, HONGKONG, JAPAN, KANADA, NYA ZEELAND, SYDAFRIKA, SYDKOREA, SCHWEIZ, SINGAPORE, USA ELLER NÅGON ANNAN JURISDIKTION DÄR SÅDAN ÅTGÄRD HELT ELLER DELVIS ÄR FÖREMÅL FÖR LEGALA RESTRIKTIONER. DETTA PRESSMEDDELANDE UTGÖR INTE ETT ERBJUDANDE ATT FÖRVÄRA VÄRDEPAPPER I SEAMLESS DISTRIBUTION SYSTEMS AB (PUBL). SE ÄVEN AVSNITTET "VIKTIG INFORMATION" NEDAN.

Styrelsen för Seamless Distribution Systems AB (publ) ("SDS" eller "Bolaget") har idag beslutat om en riktad nyemission av aktier till allmänheten om högst 2,5 MEUR, motsvarande cirka 26,5 MSEK ("Erbjudandet"), med stöd av det bemyndigande som erhölls från årsstämman den 3 juni 2020. Syftet med Erbjudandet är att få en större spridning av ägandet i Bolaget för att skapa förutsättningar för en bättre likviditet i handeln med aktien, samt tillföra Bolaget kapital för att genomföra tillväxtsatsningar samt finansiera den fortsatta förvärvsstrategin. Teckningskursen för aktierna i Erbjudandet ska motsvara den volymviktade genomsnittskursen på Nasdaq First North Premier Growth Market ("Nasdaq First North Premier") under anmälningsperioden, som löper från och med den 17 september till och med den 29 september 2020, med en rabatt om tio (10) procent.


The Board of Directors of SDS has resolved on a directed issue of shares to the public

This press release is not intended for release, publication or distribution, directly or indirectly, in or into Australia, Hong Kong, Japan, Canada, New Zealand, South Africa, South Korea, Switzerland, Singapore, the United States or any other jurisdiction where such distribution of this press release would be subject to legal restrictions. This press release does not constitute an offer of any securities of Seamless Distribution Systems AB (publ). See also section "Important information" below.

The Board of Directors of Seamless Distribution Systems AB (publ) ("SDS" or the "Company") has today resolved on a directed issue of shares to the public in Sweden of no more than 2.5 MEUR, corresponding to approximately 26.5 MSEK (the "Offering"), based on the authorization given by the annual general meeting on 3 June 2020. The purpose of the Offering is to get a wider distribution of the ownership of the Company's shares to create prerequisites for a more liquid trading in the share, as well as to finance growth investments and the ongoing acquisition strategy. The subscription price for the shares in the Offering shall be equal to the volume weighted average price for the share on Nasdaq First North Premier Growth Market ("Nasdaq First North Premier") during the application period, which will run between 17 September until 29 September 2020, with a discount of ten (10) percent.


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