www.IFSWORLD.com

INTERIM REPORT Q1 2014

© 2014 IFS

Alastair Sorbie, CEO and Paul Smith, CFO

APRIL 16, 2014

FINANCIAL AND OPERATIONAL HIGHLIGHTS

© 2014 IFS

CONTINUED STRONG GROWTH

INTERIM REPORT JANUARY–MARCH 2014

JANUARY–MARCH 2014 (FIRST QUARTER)

License revenue amounted to SKr 107 million (Q1 '13: SKr 86 million), an increase of 24 percent currency adjusted.

Maintenance revenue was SKr 249 million (Q1 '13: SKr 221 million), an improvement of 13 percent currency adjusted.

Consulting revenue amounted to SKr 335 million (Q1 '13: SKr 304 million), an increase of 11 percent currency adjusted.

Net revenue was SKr 694 million (Q1 '13: SKr 613 million), an improvement of 14 percent currency adjusted.

EBIT amounted to SKr 25 million (Q1 '13: SKr -91 million).

Cash flow after investments was SKr 133 million (Q1 '13: SKr 77 million).

Earnings per share after full dilution was SKr 0.60 (Q1 '13: SKr -2.94).

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PRODUCT GROWTH

© 2014 IFS

THE INTELLIGENT ALTERNATIVE CHOICE

INTERIM REPORT JANUARY–MARCH 2014

LICENSE SALES—STRONG GROWTH Winning highly-competitive sales to new customers in our target sectors. Existing customers expanding their global use of IFS Applications. Increases interest in IFS and helps expand partner ecosystem.

MAINTENANCE REVENUE Good customer retention, scalable, and improving margins. Product revenue (R12) is now 54 percent of total revenue mix. Over the longer term, product revenue is expected to grow at least at twice the rate of consulting.

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50%

55%

60%

65%

70%

75%

Q1'09

Q3 Q1'10

Q3 Q1'11

Q3 Q1'12

Q3 Q1'13

Q3 Q1'14

MAINTENANCE MARGIN (R12)

0

400

800

1 200

1 600

'09 '10 '11 '12 '13 R12

PRODUCT REVENUE

Maintenance Licenses

CONSULTING REVENUE

© 2014 IFS

AN EVOLVING BUSINESS

INTERIM REPORT JANUARY–MARCH 2014

CONSULTING REVENUE AND MARGIN

Consulting not expected to grow at the same rate as product revenue due to:

reduced effort required to implement IFS Applications and

changing mix of skills and increased involvement of partners.

Increased level of variable cost from the use of external partners.

PARTNER PROGRAM—INCREASING MOMENTUM

Greater global reach—able to serve larger customers.

Greater ability to manage peaks in demand.

Strong license sales has the strategic benefit of increasing interest in IFS.

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FINANCIAL OVERVIEW

© 2014 IFS

INTERIM REPORT JANUARY–MARCH 2014

A GROWING BUSINESS

6

20%

34%

46%

REVENUE MIX R12

License Maintenance Consulting

300

400

500

600

'09 '10 '11 '12 '13 R12

LICENSES

500

600

700

800

900

1 000

'09 '10 '11 '12 '13 R12

MAINTENANCE

1 000

1 100

1 200

1 300

1 400

'09 '10 '11 '12 '13 R12

CONSULTING REVENUE

0

50

100

150

200

250

300

350

'09 '10 '11 '12 '13 R12

EBIT

-50

0

50

100

150

200

250

'09 '10 '11 '12 '13 R12

CASH FLOW AFTER INVESTMENTS margin

91%

margin

74%

margin

20%

MARKET AND PRODUCT UPDATE

© 2014 IFS

1ST QUARTER

INTERIM REPORT JANUARY–MARCH 2014

IFS PARTNERS WITH TELVENT GLOBAL SERVICES IFS signed a global partnership agreement with Telvent Global Services, part of Schneider Electric, Global Solutions business unit. The partnership is aimed at delivering added value to new and existing IFS customers in the EMEA region and Latin America, primarily targeting industries such as energy and utilities, and telecommunications.

MARKET OUTLOOK Companies are showing regained interest in the ERP market and those in need of consolidating their business solution or expanding its functionality are moving forward with their investments. The gradual improvement of the buying environment seen over the last couple of years is expected to continue. This leads industry analyst firms such as Gartner to anticipate the ERP market to grow in 2014 in the region of 5 to 6 percent.

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BUSINESS AND STRATEGY

© 2014 IFS

THE INTELLIGENT ALTERNATIVE CHOICE

INTERIM REPORT JANUARY–MARCH 2014

IFS WILL CONTINUE TO SUCCEED BECAUSE: Implementation time is critical for customers with international operations; IFS’s component architecture and worldwide support can reduce this. IFS targets growing markets that are less exposed to economic fluctuations. Through close cooperation with our customers, IFS can offer differentiating industry solutions; we listen and respond rather than dominate and dictate. IFS’s agile open-technology platform enables customers to benefit from new IT developments rather than causing restrictive customer lock-in.

IFS WILL CONTINUE TO GROW THROUGH: cash-generating organic growth and targeted acquisitions.

2007 2009 2010 2011 2012

LATINIFS

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2013

DEFENCE

CUSTOMER WINS IN Q1 2014

© 2014 IFS

INTERIM REPORT JANUARY–MARCH 2014 9

Aerospace and Defense Energy and Utilities Oil and Gas Service Providers

BAE Systems Brookfield Renewable Power Odfjell Drilling Dover Harbour Board

Lockheed Martin JSF ENEA Wytwarzanie PGS Geophysical Polygon International

Asset-Intensive GDF Suez Énergie Services Songa Offshore Other

Kangra Coal Hafslund Teledyne ODI General Dynamics IT

Unimin Corporation PGNIG Termika Thalassa Holdings Municipality of Uppsala

Automotive Renova Process Manufacturing

Toyota Lanka Warsaw Water and Sewerage Co.

Benders Paper Cup Company

Wright Bus High Tech Guangzhou Taiqi Food Co.

Construction and Contracting Axis Communications Nature's Path Foods

Baltic Yachts Renco Electronics Omni Industries

Eurofeu Industrial Manufacturing Retail

IHC Merwede Holding Hymer-Leichtmetallbau D Samson & Sons

Promag Shanghai Garnor Sealing

Samson AG Meß- und Regeltechnik

STRONG UNDERLYING BUSINESS

© 2014 IFS

HIGHLY-COMPETITIVE CONTRACTS IN TARGET SECTORS

INTERIM REPORT JANUARY–MARCH 2014

SONGA OFFSHORE Songa Offshore, an international midwater drilling contractor active in the North Atlantic basin, had chosen to deploy IFS Applications to support its onshore and offshore operations.

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PORT OF DOVER Port of Dover, operating Europe’s busiest international roll-on roll-off ferry port, has chosen IFS Applications to integrate and streamline key business processes such as asset and project management.

FINANCIAL OVERVIEW

© 2014 IFS

INTERIM REPORT JANUARY–MARCH 2014 11

1ST QUARTER APRIL–MARCHSKr million 2014 2013 2013/14 2012/13

Net revenue 694 613 2 785 2 621of which Licenses 107 86 556 474of which Maintenance and support 249 221 930 888of which Consulting 335 304 1 287 1 238Gross earnings 335 274 1 449 1 288of which Licenses 90 77 508 444of which Maintenance and support 186 150 684 609of which Consulting 58 48 251 224EBIT 25 -91 318 94EBIT margin 4% -15% 11% 4%Earnings before tax 21 -94 299 87Earnings for the period 15 -74 232 57Cash flow after investments 133 77 178 -61

CASH FLOW

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INTERIM REPORT JANUARY–MARCH 2014 12

GROUP 1ST QUARTER APRIL–MARCHSKr million X 2014 2013 2013/14 2012/13

Cash flow before change in working capital 63 22 377 339Change in working capital 124 123 71 -58Cash flow from current operations 187 145 448 281

Cash flow from investments -54 -68 -270 -342Cash flow after investments 133 77 178 -61

Cash flow from financing -57 -14 -56 21Cash flow for the period 76 63 122 -40

Cash and equivalents, beginning of period 354 253 314 362Exchange differences in cash and equivalents 1 -2 -5 -8Cash and equivalents, end of the period 431 314 431 314

OUTLOOK

© 2014 IFS

INTERIM REPORT JANUARY–MARCH 2014

FOR 2014, IFS EXPECTS STRONG LICENSE GROWTH AND A SIGNIFICANT IMPROVEMENT IN EBIT.

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THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALITY FOR IFS’S SOFTWARE PRODUCTS AND TECHNOLOGY. SUCH STATEMENTS OF FUTURE FUNCTIONALITY ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION. IFS AND ALL IFS PRODUCT NAMES ARE TRADEMARKS OF IFS. THE

NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS.

© 2014 IFS