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

April - June
· Net sales amounted to MSEK 70.9 (54.6), an increase of 30.0% compared to the same period the previous year.
· EBITDA result amounted to MSEK 13.9 (3.3).
· EBITDA margin amounted to 19.6% (6.1%).
· Profit after tax amounted to MSEK 5.2 (-1.0).
· Earnings per share amounted to SEK 0.62 (-0.13).
· Total cash flow amounted to MSEK 0.6 (-2.8).

January - June
· Net sales amounted to MSEK 156.2 (105.7), an increase of 47.8% compared to the same period the previous year.
· EBITDA result amounted to MSEK 26.8 (9.5).
· EBITDA margin amounted to 17.2% (9.0%).
· Profit after tax amounted to MSEK 8.5 (1.5).
· Earnings per share amounted to SEK 1.05 (0.19).
· Total cash flow amounted to MSEK -1.5 (-2.3).

CEO comment

"SDS continues to perform well during the second quarter of the year despite the significant changes that have taken place globally. Compared with the corresponding half-year last year, sales increased by 48% to SEK 156.2 million and EBIT increased by 255% to SEK 13.1 million. The order situation remains bright, although it varies between quarters. During the second quarter, the order situation did not reach expectations, however the third quarter started with a strategically important agreement with the leading mobile operator in Nigeria. The agreement includes our microcredit service for resellers which increases both our recurring revenue and our service offering. We have an increasing digital market presence and broader customer processing, which gives confidence going forward. I look forward to a second half year with additional new customer sales as a complement to the existing customer base.

During the continuing COVID-19 pandemic, we continued to work from home in most regions without any negative impact. In fact, we have seen an increase in productivity. SDS is a virtual company, which is one of our strengths, not least in this time. Despite this, we have experienced challenges in working remotely with some of our customers which has led to some delays in integration and production. This has affected cash flow to some extent, but we are continuously working closely with our customers to support and deliver at the planned pace. It is gratifying to have the higher availability of our more senior contacts with new and existing customers, which in many cases has had a very positive effect on dialogue aimed at increased sales.

In our work to realize synergies from the acquisition of eServGlobal, all three of their largest customers have decided to migrate to the SDS ERS 360 platform. The continued post-acquisition restructuring has been affected by the pandemic, causing a delay of approximately two months. Despite this, we have been able to see a continued increase in customer satisfaction in the customer base. At the beginning of April, we launched our new digital marketing platform, where we can track our online interactions with contacts that show an interest in SDS and our offer. In connection with this, we have also significantly increased our communication on social networks. At the beginning of June, we conducted our first webinar where we received fantastic interest with over 90 registered participants. It is good timing to have the marketing digitized and I see lots of potential customers who are automatically processed and qualified before they are taken care of by someone from our sales team.

Our already broad high-tech product portfolio has continued to develop and is now able to handle the indirect channel of mobile operators and distributors in a cloud-based environment. The company's new products for digitization of sales and distribution of physical products have attracted a lot interest from both existing and new customers. We now have an offer that covers resale and consumers' buying behavior with mobile operators and through our new analytics platform we can deliver insights into buying patterns, which provides increased added value and the opportunity to act on the right information. Currently, we are the only ones in the market to hold this position and it bodes well for our continued organic growth, not only in emerging markets but also in more advanced and mature markets.

It is particularly satisfying that during this first half of the year we have strengthened our equity and reduced our debt and cost of capital. During the first half of the year, we worked on our capitalization and made a set-off issue of SEK 19 million in bridge loans raised in connection with the acquisition of eServGlobal. We have also extended a working capital loan of SEK 9.2 million from July one year onwards to a lower interest rate and raised a loan of just under 5 percent interest from Almi of SEK 7 million backed by a loan of SEK 3 million from private investors, including myself and Board.

It was with great pleasure that I was able to talk about SDS to a wider audience during the quarter, as I was invited to investor presentations at Erik Penser Bank and Pressträff Direkt, which were both broadcast live on the web and became available for viewing afterwards.

SDS has been affected by the coronavirus pandemic but the assessment is that the impact is, and will be, marginal. The company's employees can fully complete their work from home and all installations can take place remotely. The growth strategy established in the autumn of 2019 remains and will continue to be executed in all parts. SDS has a long and stable upswing behind it and a clear growth strategy that should interest more investors in the future."

Tommy Eriksson,
CEO, Seamless Distribution Systems AB

For further information, please contact:
Martin Schedin, CFO
[email protected]

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 on July 23, 2020 at. 08.30 CET.

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:
[email protected]

Seamless Distribution Systems utser Mats Victorin till ny vd och koncernchef

Styrelsen för Seamless Distribution Systems AB (publ) har idag träffat en överenskommelse med Tommy Eriksson som lämnar bolaget efter tio år, varav de senaste fyra åren som vd och koncernchef. Styrelsen har samtidigt utsett Mats Victorin till ny vd och koncernchef som en del av bolagets nästa utvecklingsfas. Mats Victorin tillträder omgående.

Seamless Distribution Systems appoints Mats Victorin as new President and CEO

The Board of Directors of Seamless Distribution Systems AB (publ) has today signed an agreement with Tommy Eriksson, who will leave the company after ten years and as its CEO and President during the last four years. At the same time, the Board of Directors has appointed Mats Victorin as the new CEO and President as part of the company's next phase. Mats Victorin will start immediately.

SDS vinner order värd 3,0 miljoner kronor från ny kund i Ghana

Seamless Distribution Systems (SDS) har fått en order värd 3,0 miljoner SEK från en helt ny kund i Ghana. Affären avser driftsättningen av SDS flaggskeppsprodukt ERS 360°, som ska ersätta kundens befintliga lösning och underlätta digitaliseringen av kundens försäljnings- och distributionskanal.

SDS receives an order worth SEK 3.0 million from a new customer in Ghana

Seamless Distribution Systems (SDS) has received an order worth 3.0 million SEK from a brand-new customer in Ghana. The deal concerns the commissioning of SDS's flagship product ERS 360 °, which will replace the customer's existing solution and facilitate the digitization of the customer's sales and distribution channel.

SDS håller livesänd pressträff med anledning av publicering av Q3-rapport

SDS kallar till en livesänd pressträff torsdag 21 oktober klockan 11.30. Under pressträffen kommer SDS vd Tommy Eriksson gå igenom bolagets utveckling under kvartalet, samt berätta om bolagets utveckling framåt.

SDS får genombrottsorder Software-as-a-Service (SaaS) från Vodafone

Seamless Distribution Systems (SDS) har fått en storaffär från Vodafone Oman på hela sitt produkterbjudande. Affären är den första med Vodafonegruppen och innebär att SDS blir strategisk leverantör av teknologi till Vodafone Oman, som ingår i en av världens största telekom-grupper. Ordern avser Vodafones lansering i Oman som är en ny marknad för operatören och inkluderar SDS SaaS-erbjudande Retail Value Management (RVM) suite. Ett SaaS-avtal som sträcker sig över tre år har tecknats, vilket kan komma att ge återkommande intäkter uppgående till ca 10-15% av SDS nuvarande supportintäkter om Vodafone lyckas med sin marknadspenetration under kontraktsperioden.

SDS wins breakthrough Software-as-a-Service (SaaS) order from Vodafone

Seamless Distribution Systems (SDS) secures a major deal to become the strategic technology provider of Vodafone Oman, part of one of the world's largest telecom groups. The order is for Vodafone's launch of operations in Oman as a greenfield operator and includes a SaaS offering of SDS' Retail Value Management (RVM) suite. The signed three-year SaaS agreement can render recurring revenues of up to approximately 10-15% of SDS's current support revenue if Vodafone Oman reaches their target market penetration during the contract period.

SDS får en order värd 7,7 miljoner kronor från ny operatörsgrupp

Seamless Distribution Systems (SDS) har via en global systemleverantör fått en strategisk order värd 7,7 miljoner kronor. Ordern avser implementering av SDS flaggskeppsprodukt ERS 360° och support över fem år och slutkunden är en helt ny operatörsgrupp och avser deras verksamhet i Algeriet.

SDS receives an order worth SEK 7.7 million from a new telecom operator group

Seamless Distribution Systems (SDS) has received a strategic order worth SEK 7.7 million via a global system supplier. The order refers to the implementation of SDS transaction system ERS 360 ° and support over five years. The end customer is a completely new telecom operator group to SDS, and the installation concerns their operations in Algeria.

SDS får en order värd 6,7 miljoner SEK från en av de största operatörerna i Nigeria

Seamless Distribution Systems AB (SDS) har fått en order på en USSD gateway och applikationsportal från en av Nigerias största mobiloperatörer. Denna order inkluderar distribution av en viktig intäktsförstärkande plattform för kundens mervärdetjänster (VAS) och serviceerbjudanden.

SDS receives an order worth SEK 6.7 million from one of the largest operators in Nigeria

Seamless Distribution Systems AB (SDS) has received an order for USSD gateway and application portal from one of Nigeria's largest mobile operators. This order includes the deployment of an important revenue-increasing platform for the client's various VAS offerings.

SDS erhåller ytterligare en order från Telenor till ett värde av 11 miljoner kronor

Seamless Distribution Systems (SDS) har fått ytterligare en order från Telenor. Seamless ska migrera och ersätta en konkurrents lösning i Grameenphone Bangladesh. Ordern är den andra från Telenor idag och är värd 11 miljoner Kronor. SDS har därmed ökat sin orderstock med totalt 20 miljoner kronor idag.

SDS receives an additional order from Telenor worth USD 1.3 million

Seamless Distribution Systems (SDS) has received another order from Telenor. The order is for Seamless to replace and migrate an existing competitor's solution in Grameenphone Bangladesh. The order is the second from Telenor today and is worth USD 1.3 million. SDS has thereby increased the orderbook with in total USD 2.3 million

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