2017 Annual Report DESIGN CONNECT SUPPLY. Digitalizing the building industry

Transcription

1 2017 Annual Report DESIGN CONNECT SUPPLY Digitalizing the building industry

2 BIMobject is an IT company with a global platform where manufacturers can digitally create, publish and maintain their construction and interior design products. The digital objects are available to professionals such as architects, designers and engineers, as well as construction companies, and can be used in 3D, CAD and BIM models as digital building blocks.

3 Introduction This is BIMobject 4 The year in brief 5 A message from our CEO 6 Vision, goal, strategy, and revenue model 8 Value proposition 10 Market 18 Financial reports Administration Report 26 Consolidated income statement 30 Consolidated balance sheet 31 Consolidated statement of cash flows 32 Parent company income statement 33 Balance sheet Parent company 34 Parent company statement of cash flows 35 Notes 36 Signatures 43 Auditor s report 44 Board of Directors and management team 46 Other information 48

4 INTRODUCTION BIMOBJECT IN BRIEF This is BIMobject BIMobject is an innovative technology company that makes building and interior products digitally accessible through its proprietary cloud-based platform, BIMobject Cloud. We are at the forefront of the digitalization of the construction industry an industry that is among the least digitized, on a level similar to agriculture and hunting. The dawning digitalization of the construction industry paves the way for new working methods, faster and more precise design phases, greater sustainability and futureproof property management. Our digital cloud solutions for manufacturers of building and interior products include development, storage and publication of digital versions. These digital versions of the manufacturers physical products are referred to as Building Information Modeling, or BIM, objects. BIM objects can describe buildings and their components in detail, and can also be integrated in models that can be used throughout the design and construction processes. Our cloud solutions and other online services can easily be integrated into softwares commonly used by architects and designers. BIM objects that are used early in the design phase in digital models increase the chances that they are also procured later on and used as physical products in the construction phase. BIMobject was founded in 2011 and has been listed on NASDAQ Stockholm First North since 2014 under the ticker BIM. Figures as of 31 March ,100 manufacturers 740,000 registered users 22.1 million accumulated downloads 298,000 BIM objects Downloads 2017 Countries with the most accumulated downloads from BIMobject Cloud. BIMobject users 800,000 Number of downloads: US 1,817,194 Brazil 1,449,415 Russia 824,430 Spain 817,275 Mexico 780,344 Italy 773,756 France 680,391 China 621,059 United Kingdom 416,093 Germany 391,696 Poland 385,314 India 382,637 Turkey 365,732 Canada 321,414 Denmark 306,811 Others 8,199,915 TOTAL 18,533, , , , Vision The BIMobject vision is for all building and interior products to have a digital version in the form of a BIM object that is accessible to all users everywhere via the BIMobject Cloud. Billing by region Europe (excluding Nordic region): SEK 45 million North America: SEK 40 million Nordic region: SEK 28 million 4 BIMOBJECT ANNUAL REPORT 2017

5 THE YEAR IN BRIEF INTRODUCTION 2017 a year of strong growth The year in brief Q1 January Acquisition of Autodesk Seek. We took over about 270 ongoing customer agreements with an estimated annual sales of SEK 35 million. Autodesk Seek s customers now use the BIMobject Cloud. Q2 April Digitalization partnership with Riksbyggen We developed digitalization and streamlined working methods, for example by using BIM at an earlier phase via the Hercules platform. Q3 August The BIMobject Cloud passes the milestones 500,000 users and 1,000 manufacturers. New users continued to increase and product demonstrations totaled over 94 million. The total number of downloads was 13 million. Q4 October API and Apps as free source code. Our API and Apps enable manufacturers and developers to develop their own solutions, modify existing features and integrate information directly on their own websites. Key figures January BIMobject in Germany received order worth EUR 200,000. With this order we developed BIM objects for an international company specialising in high-quality bathroom solutions. May Subsidiary established in Hong Kong As a result of this establishment we can more easily meet the demand from the Asian market and further develop existing collaborations. September The British Ministry of Justice signed an agreement with BIMobject. The Hercules platform supports the ministry s development of digital content libraries and the ministry can also control access to its database and more easily distribute content. October Decision to launch bim.com. In the future, the new business area will serve as a leading app store for BIM-related applications. January Directed share issue to Solar As a result of the directed share issue of about SEK million to Solar, a leading sourcing and service company, the owner base was broadened and BIMobject raised expansion capital. SEK m Billing during the period Net sales Gross margin 87% 85% 78% 73% Profit/loss for the period Earnings per share*, SEK Number of users accum., thousands Number of downloads accum., thousands 18,533 7,320 3,911 1,514 Number of product families, accum., thousands Number of FTEs *Basic earnings per share There are 492,750 issued warrants. Each warrant entitles the holder to subscribe to two shares. December Subsidiary form in Japan. We entered into an agreement with the 400-year old Nohara to form BIMobject Japan. The company has sole rights to market our services and products. BIMobject holds a 51% stake in the company and will receive at least USD 1 million annually in license fees over the first three years. Sales and gross margin Consolidated operating profit/loss (SEK thousand) % 78% 85% 87% Consolidated net sales SEK m Gross margin, % Billing, net sales and gross margin 70 SEK m Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Billing per quarter Net sales per quarter Gross margin per quarter, % % 90% 80% 70% 60% 50% 105% 90% 75% 60% 45% 30% 15% 0% BIMOBJECT ANNUAL REPORT

6 INTRODUCTION A MESSAGE FROM OUR CEO A fantastic 2017 with explosive growth The deal with Autodesk in early 2017 became something of a breakthrough for BIMobject and the BIMobject Cloud. We increased net sales for the year by 148 percent and also took a major step towards becoming established as the market leader. We can proudly show by far the most users, downloads and global presence. In 2017 we saw an explosive increase in the number of professional users, downloads and accessible objects, as well as in revenue and paying customers. The takeover of Autodesk Seek mainly contributed to the sharp surge in revenue when we took over 270 customer agreements with manufacturers of building and interior products. The deal also helped to strengthen our market position in the US of 386,000 new professional users, almost 100,000 came from the important US market. In total, around 11 million BIM objects were downloaded in 2017, which is as many as during all of BIMobject s previous financial years combined. The trend shows that we delivered in accordance with our strategy in 2017 and passed several key milestones. BIMobject Cloud is now the leading BIM content platform and provider, and the journey continues. BIMobject Hercules and the Digital Buildings business area BIMobject is at the forefront in creating digital solutions and content adapted to BIM. One extremely important initiative in 2017 has involved building up a business area based on the concept of Digital Buildings, according to which we will offer property owners value-generating solutions such as BIMobject Hercules, and by extension, also BIMsupply our future digital sourcing marketplace. Property owners can use BIMobject Hercules to create private digital BIM clouds with a range of products that is optimized for them. At the beginning of the year we signed an agreement with the British Ministry of Justice to create a Hercules solution for them. Hercules improved both their overview and their control over their buildings. All individuals within the Ministry of Justice who are responsible for construction, renovation or maintenance now plan their purchases based on the product range that is available in their Hercules portal. With this solution they can ensure that the entire property portfolio maintains the correct safety classification over time and that they can coordinate and streamline their purchasing. They also increase their knowledge about future maintenance needs, as well as the environmental impact of buildings and their future operating expenses. Here at home, Riksbyggen and a number of major construction companies have signed Hercules Cloud agreements and the overall experience is extremely positive. Continued innovation and several developers Our entire business is based on the ability to offer users, customers and partners attractive content. Users need a broad and complete selection of BIM objects that are relevant for them in order to create exact models of their buildings. Given the quantity of available products many of which have national variations the development of BIM files is a rather crowded sector. More developers must be able to develop BIM objects and to achieve this objective, we released BIMscript. This unique tool conveniently links manufacturers CAD files with BIM information, which provides complete BIM objects. BIMscript radically simplifies and streamlines the digitalization process, and we are now dedicating resources to train and support manufacturers, property owners and thirdparty developers all over the world so that they can develop and publish their products on our platform. Innovation and continued development of simple, intelligent solutions are the key to a maximally attractive platform. An open API and open source code for app development allow third-party developers of ancillary services to integrate them, while BIMscript Academy and style guides ensure that we 6 BIMOBJECT ANNUAL REPORT 2017

7 A MESSAGE FROM OUR CEO INTRODUCTION In a shorter perspective, the goal is to reach one million users and 20 million additional downloads by the end of In addition, we will be ten times larger than our closest competitor. Stefan Larsson Chief Executive Officer build a standard together and a future-proof single source of truth. Because of the latter, a change to an object on BIMobject Cloud will be implemented to update all programs where it is used like a digital updating key. Augmented reality (AR) and virtual reality (VR) are two hot technology areas that create incredible opportunities to streamline the construction, interior design and property industries. Within these areas we are now working closely with all major mobile device manufacturers to develop solutions to enable mobile access to our digital product catalog. Increased global market presence Our efforts to increase our global market presence are progressing on several parallel tracks. The acquisition of Autodesk Seek substantially strengthened our position in North America and acquisitions are a key strategy for future growth as we strive to identify potential acquisition candidates. Another path involves strategic hiring and organizational development, where the additions of Mark Haddad as CEO of our subsidiary in the US and Michael Thydell, Sweco s BIM expert, as business area manager for Digital Buildings, create good prospects for continued organic growth. Finally, we have increased our visibility at conferences, in social media and by dedicating our efforts to creating new strategic partnerships regarding both footholds in new markets and product innovations. The partnership with Nohara, a distributor of building and interior products in Japan, and the establishment in the strategically important Japanese market was made possible because we founded a joint company. Nohara has been in business for over 400 years and the company s aggregate knowledge provides us with the opportunity to rapidly build a user base along with a market presence on the world s third largest market with a construction industry that is facing major investments and digitalization. To maintain and strengthen our market-leading position, we must continue to invest in organizational and product development, as well as a market presence. In 2017 our efforts were successful and the beginning of 2018 shows that the trend is continuing according to plan. Ambitious goals for 2018 The digitalization wave is having a fundamental impact on the construction industry amidst steadily growing demand for digital solutions. This trend is in line with our vision to establish the BIMobject Cloud as a global single source of truth within BIM since all market participants would benefit in the long term. In a shorter perspective, the goal is to reach one million users and 20 million additional downloads by the end of In addition, we will be ten times larger than our closest competitor. The goals are ambitious and require continued efforts to drive sales in the markets where we are established, to nurture and develop our strategic partnerships, and to work deliberately with acquisitions to accelerate our entrance into new markets. We continue to strive for double-digit organic growth and to reduce the negative cash flow for the full year. Last but not least, we hope to see an equally explosive year in 2018 in which AR, VR and by extension BIM occupy a larger and more dynamic position in the daily lives of manufacturers, property owners and users. Stefan Larsson Chief Executive Officer BIMOBJECT ANNUAL REPORT

8 INTRODUCTION VISION, GOAL, STRATEGY, AND REVENUE MODEL A global platform BIMobject launched the BIMobject Cloud in The service is a cloud-based portal for distribution of BIM objects and the core of BIMobject s value proposition. The portal is globally accessible and as of 31 March 2018 the portal had more than 740,000 registered users, primarily architects and structural engineers. The users have access to more than 45,000 product families, with a total of 298,000 BIM objects from 1,100 different manufacturers. BIMobject is investing heavily in marketing and sales to increase the number of manufacturers and suppliers who use the portal for product exposure. VISION The BIMobject vision is for all building and interior products to have a digital version in the form of a BIM object that is accessible to all users everywhere via the BIMobject Cloud. OVERARCHING GOALS BIMobject s overarching goal is to become the globally leading cloud-based platform for publication of BIM objects and other BIM - related IT services. STRATEGY By pursuing an aggressive global sales strategy, the BIMobject Cloud will become established as the market - -leading and clearly superior platform for publishing and downloading BIM objects. GROWTH WILL BE GENERATED BY: Attracting new users. Increasing the number of manufacturers and products published on the platform. Acquiring companies that can complement the business and/or establish BIMobject on new markets. Developing a platform for publishing and offering BIM-related third-party apps. Promoting the development of ancillary services that leverage the value of the current platform for existing users. Promoting the development of company-specific BIM object platforms where individual companies globally or locally can guide their own organization s purchasing based on their dedicated requirements. Offering accredited developers the opportunity to freely use the BIMobject solution to easily and efficiently create new BIM objects using BIMscript for publication on the BIMobject Cloud. Identifying and establishing partnerships with various companies around the world that in one way or another can complement and grow the business. 8 BIMOBJECT ANNUAL REPORT 2017

9 VISION, GOAL, STRATEGY, AND REVENUE MODEL INTRODUCTION BIMobject s marketing strategy DESIGN CONNECT SUPPLY Digitalize all building and interior products Build a community and generate downloads Analyze downloads and market accurately via BIManalytics Core Bring together buyers and manufacturers via advanced Business Intelligence Simplify collaboration via digital projects Be the digital middleman in purchasing Marketplace Establish marketplace Digitalize product data together with product owners/ manufacturers. Attract users by offering high-quality and easily accessible product data. Downloads and user behavior provide valuable information about demand and market trends. Target product marketing to interested users. Bring stakeholders together Development of advanced Business Intelligence solutions intelligent market and business analysis software enables BIMobject to effectively: Link buyers with suppliers. Develop cloud platforms for collaboration and communication related to construction and design projects. Upload entire BIM models and projects to cloud platforms. Offer attractive solutions for property owners. Purchasing intermediary When construction companies or architects working on a project use BIM objects from the cloud-based platforms in design models, they can seamlessly send shopping lists and specifications to manufacturers or distributors. Meanwhile, manufacturers and distributors use the platforms to market their products and to access these lists. In this situation BIMobject has the opportunity to offer a simplified and precise digital marketplace. Revenue model BIMobject s revenue is generated in part from manufacturers of construction materials and interior products, and in part from business partners. Income sources include, but are not limited to: 1. PROJECT WORK Creation, maintenance and publication of BIM objects from various sources, for manufacturers and partners. Project work is partially or fully billed in advance, while revenue accrues based on the timing of the work in the project. Breakdown of revenue by project/online service Subscription for online services as a share of net sales, % Projects as a share net sales, % 2. SUBSCRIPTION FOR ONLINE SERVICES. An annual subscription fee for manufacturers both to publish and to use the various tools that BIMobject created with the purpose of increasing customer benefit through: BIMobject Product Site and BIMobject Hercules. Used by manufacturers and construction companies to control the selection of products. BIManalytics Core and BIMobject Mail. Used to evaluate and communicate with users of the BIMobject Cloud. BIMobject Mosquito and BIMobject Properties. Simplifies production and maintenance of BIM objects. Initially, revenue attributable to creating, maintaining and publishing BIM objects is expected to account for a large portion of BIMobject s revenue. In the long term, however, subscription fees are expected to be the primary source of revenue. 55% 45 % % 40 % 2017 BIMOBJECT ANNUAL REPORT

10 INTRODUCTION VALUE PROPOSITION This is how we are digitalizing the construction industry We offer various types of online services linked to BIM objects. Our online services include cloud-based storage of BIM objects, data analysis and all linked information, as well as documentation. We also offer development in other words, programming with a focus on producing new BIM objects and converting older data files. The solutions are aimed at manufacturers of building and interior products, BIM users (such as engineers, architects and designers), and property owners. 10 BIMOBJECT ANNUAL REPORT 2017

11 VALUE PROPOSITION INTRODUCTION BIMobject Cloud the right information and always accessible BIMobject Cloud is the core of our value proposition It is a cloud-based portal where manufacturers of building and interior products can upload digital copies, known as BIM objects, of their physical products. The products can then be downloaded free of charge by architects, designers, engineers or private individuals, who gain access to complete product logic such as exact dimensions, properties and energy consumption. These objects serve as the basis of intelligent 3D-models in which all stakeholders can visualize and analyze an entire model, or smaller parts of a project already at an early planning stage. The information material simplifies evaluation of factors such as buildability, timetables and resource consumption. Consequently, problems such as waste and design collisions can be identified and solved early in the design phase. Intuitive portal The cloud-based portal is intuitive and user-friendly. Through collaborations with major BIM software providers such as Autodesk, Graphisoft and Nemetschek, their users can also access content directly from the design program. All product changes made by a manufacturer are uploaded to BIMobject Cloud for example, changes in measurements, colors or metadata such as energy consumption and automatically updated throughout the information chain. Whenever a manufacturer modifies a product, the change is therefore automatically updated in, for example, the user s design program. In this context, this is known as a single source of truth the object on BIMobject Cloud is always the most recently updated version and is automatically updated where it is used. Saves time BIMobject Cloud users avoid the time-consuming task of developing objects themselves, and they can be sure that the manufacturer has the product available for use in the construction or interior design process. Manufacturers who make their products available via BIMobject Cloud increase the likelihood that their products will be integrated at an early stage in, for example, a virtual 3D-model of a property or interior design of residential or commercial space. Manufacturers also receive continual statistics on the use of their products, while users have the opportunity for direct contact with manufacturers via the portal. High growth Growth of number of products and users; high and accelerating goal, mutually interdependent. As of 31 March 2018 the number of manufacturers on BIMobject Cloud was 1,100 and the number of professional users was 740,000, who have carried out a total of about 22.1 million downloads. BIMOBJECT ANNUAL REPORT

12 INTRODUCTION CASE STUDY FACTS: TONDA PIZZA Operates in: Italy, Spain, Portugal, Dubai (United Arab Emirates), US, Australia, Vietnam. Industry: Restaurant BIM technology allows us to calculate and make accurate estimates of everything from energy consumption to maintenance costs. BIM led to new insights and effective cost control INTERVIEW WITH: Franco Rebecchi Architect for Tonda Pizza Tonda Pizza started out in 1948 as a small local restaurant in Corso Manthonè and is now a global pizza chain. Prior to the global expansion, architect Franco Rebecchi worked with BIM to visualize construction models via Virtual Reality in order to build efficiently and with respect for environmental concerns, based on all the metadata in the BIM objects. By extension, this approach resulted in digitalized project planning with substantially lower costs. The company is currently planning and building restaurants in Ho Chi Minh City and in Dubai. They will serve as models for Tonda s future restaurants all over the world. Tonda has used BIM to create a digital model of a restaurant that can be adapted when necessary to the requirements and conditions in each country. The kitchen is one of the most important places in the restaurants, and it is also one of the most expensive parts of the construction project. When planning the kitchens, Franco used all of the ancillary information of the BIM objects, such as electricity consumption, life span or environmental impact. He could then use these data to calculate the life cycle cost of the restaurant. An expensive machine at the time of purchase may prove to have a lower life cycle cost and thus be more profitable. BIM technology allows us to calculate and make accurate estimates of everything from energy consumption to maintenance costs, says Franco. According to Franco, the interplay between BIM, AR (augmented reality) and VR (virtual reality) is gaining ground among architects, and he believes that this combination paves the way for new collaborative ventures and opportunities that would never before have been possible: With new technology like BIM and VR, we can let the chefs and waiting staff walk around in a virtual space to give us input. The technology greatly simplifies visualization and generates ideas for planning and concept development and it also reduces both risk and costs, says Franco, who is convinced that designers, architects and manufacturers will collaborate even more in the future, throughout the entire design process. 12 BIMOBJECT ANNUAL REPORT 2017

13 VALUE PROPOSITION INTRODUCTION Hercules the private cloud-based platform BIMobject Hercules is a private and customized version of BIMobject Cloud. The private cloud solution is adapted to companies and projects that want to be able to control the database of BIM objects to include a specific, carefully selected product range. Hercules is an encrypted solution and is offered by subscription as a Platform as a Service (PaaS). Hercules platform users select and upload exactly the products that will be downloadable from the cloud-based platform for example, appliances from a specific manufacturer, or sofas in a specific shade of red. It is also possible to upload proprietary BIMobjects to the Hercules platform. Organize, structure, standardize and manage Hercules makes it easier for customers to upload, organize, structure, standardize and manage BIM objects. Hercules provides customers with total control over the building and interior products used in a project. Just as in the case of BIMobject Cloud, Hercules is based on the concept that there should be one object, a single source of truth. The objects are accessible from all locations, via web browsers and BIM applications such as Revit, ARCHICAD, SketchUp, Vectorworks and AutoCAD. Facts: Hercules Hercules enables companies to take total control over their cloud, and to govern who has access and what will be available in a construction project. Hercules users include the British Ministry of Justice. BIMOBJECT ANNUAL REPORT

14 INTRODUCTION VALUE PROPOSITION BIManalytics Core the manufacturers BI tool BIManalytics Core is an analysis, sales support, business and marketing tool for monitoring downloads from BIMobject Cloud. The tool generates leads for potential customers. Each product that is downloaded from BIMobject Cloud is tracked in compliance with GDPR and other data privacy laws to register user activity. BIManalytics Core collects all activities related to the building material manufacturers digital content at BIMobject Cloud for further analysis. The tool includes functions such as sorting, filtering and presenting analyses of data from the database. It can also create reports based on a wide variety of selections such as time periods, and it can also provide detailed information about which BIM systems are used in different countries. Armed with this information, BIManalytics Core users can then direct marketing at users who download objects to inform them about the company s products so that they can use them in future construction or interior design projects. BIManalytics Core makes it easy to measure the return on various marketing investments or product development initiatives. Facts: BIManalytics Core BIManalytics Core enables manufacturers of building and interior products to easily and clearly gain insights into where their BIM objects are used and how popular they are information that is invaluable for sales support. 14 BIMOBJECT ANNUAL REPORT 2017

15 CASE STUDY INTRODUCTION FACTS: HUFCOR Operates in: US, Australia, China, Germany and Malaysia. Industry: Manufacturer of mobile wall systems for public and commercial spaces. Our products receive a huge number of views and downloads from all over the world. Our content on the BIMobject Cloud is highly sought after by architects since it helps them in their daily work. BIM technology opened the door to a global market INTERVIEW WITH: Scott Staedter Responsible for major international projects at Hufcor Scott Staedter is responsible for major international projects at Hufcor and has worked for 26 years with contractors and authorities from widely diverse cultures and markets. In his previous position as head of marketing he realized early on that BIM is a powerful marketing tool and door opener especially for product manufacturers who want to reach new and larger markets. Because of Scott s insights about BIM and its marketing potential, Hufcor digitized its entire product portfolio early on and published it on the BIMobject Cloud. Following the digitization of its product catalog, Hufcor transitioned from being a traditional selling manufacturer to being a consulting partner whom customers contacted for advice and inspiration. From a sales perspective, this shift in position has been invaluable, at the same time that the presence on the BIMobject Cloud has also led to a dramatic increase in product views in other words, prospects and lead generation that has contributed to increased sales. Our products receive a huge number of views and downloads from all over the world. Our content on the BIMobject Cloud is highly sought after by architects since it helps them in their daily work. When our objects are implemented in a BIM model they are rarely replaced with another BIM object. BIMOBJECT ANNUAL REPORT

16 INTRODUCTION CASE STUDY FACTS NORDAN Operates in: Sweden. Industry: Window and door manufacturer. By extension, work is now much more fun. It s better for everyone involved. We could identify potential problems early, which saved unnecessary costs far into the process costs that were always considered inevitable in large construction projects. BIM streamlined and accelerated building processes INTERVIEW WITH: Andreas Långström NorDan s head of product development Window and door manufacturer NorDan used the BIMobject Cloud during a pilot project involving about 600 apartments in Uppsala, Sweden. One of the largest construction companies in Sweden also participated in the pilot project. NorDan s head of product development Andreas Långström saw that the project phases were substantially shortened, at the same time that accuracy increased. The transition to digital project planning also significantly improved long-term planning for everyone. NorDan s BIM objects were used throughout the planning and building process. Andreas quickly recognized the benefits of using BIM: project phases were shortened and accuracy increased by having the right data in the right place. NorDan could immediately study a virtual model of the completed residential building, which meant that project participants met at an earlier phase than what was previously possible. Andreas laughs as he remembers how the absence of finished drawings surprised everyone during the first customer meeting: I had to spend a few minutes explaining that was precisely the point! According to Andreas, the project has led to a major change in attitude at NorDan regarding digitalization. For NorDan, BIM has entailed more intelligent work processes that save time and free up expertise and resources for use in new projects. Previously, we could only plan 12 weeks ahead; now, using BIM, we can plan ahead for a full year. By extension, work is now much more fun, says Andreas, who continues: It s better for everyone involved. We could identify potential problems early, which saved unnecessary costs far into the process costs that were always considered inevitable in large construction projects. Reflecting on the digital journey they have taken, Andreas says: "Inefficiency and unnecessary costs are major problems in the construction industry, and we have recognized the inadequacies of conventional working methods for a long time. We pride ourselves on being open to change. For us, BIM has been a catalyst for digital solutions and we ve seen positive effects all the way down to the subcontractor level. 16 BIMOBJECT ANNUAL REPORT 2017

17 VALUE PROPOSITION INTRODUCTION BIMscript future-proof technology and solution to easily create BIM objects BIMscript was developed to streamline and accelerate the process of creating BIM objects. This convenient free tool for creating BIM objects is available to anyone who applies for a license. BIMscript is based on part of the C programming language, and allows development of intelligent objects that are then uploaded, stored and handled directly in the BIMobject Cloud. They can also be uploaded to the private cloud solution, Hercules. All objects created using BIMscript are compatible with all platforms that BIMobject supports. BIM objects that are developed and published via the BIMobject Cloud are futureproof and can be provided with properties that make them compatible with future visualization technologies. AR and VR are examples of such technologies. BIM objects can also be compatible with program such as BIMscript Assembly Macro, based on Blockchain and Hyperledger technology. About 40 percent of BIMobject sales are attributable to development projects and programming of BIM objects. A growing share of these projects go through BIMscript, which saves a substantial amount of time and improves the quality of the BIM objects. One example of a BIMscript project is the conversion of building material and interior product manufacturers older digital drawings (for example, in CAD format) to modern BIM objects. Facts: BIMscript BIMscript allows simple conversion of mechanical files into futureproof, intelligent BIM objects. BIMOBJECT ANNUAL REPORT

18 INTRODUCTION MARKET From CAD to BIM Focus on digitalization of the construction industry The construction industry is facing a major and necessary digitalization process that many industries have already successfully completed. 18 BIMOBJECT ANNUAL REPORT 2017

19 MARKET INTRODUCTION The construction industry last to join the digitalization wave Design and construction have evolved from hand-drawn building plans to computer-aided design: CAD. Now it is time for the next step. The computer is now standard for most designers and engineers, which has streamlined drawing management and improved visualization and communication regarding various construction projects. Over the past ten years a revolution has taken place, where the earlier 2D and 3D CAD technology have been gradually replaced by the more process-based and object-oriented BIM technology. Building Information Modeling (BIM) is a collective term for all of the technologies, processes and software that are now used in the construction sector. BIM technology enables extensive digitalization of the building and interior products markets. The trend in the industry is global and use of more integrated process-based tools is accelerating. BIM technology enables architects, designers and engineers to create 3D models of a completely furnished building. These models also contain forward-looking information related to the life cycle of the building and expected maintenance requirements. A requirement for working with BIM is that all building material and interior product elements must be accessible in digital format that can easily be downloaded to the design program used to create the BIM model. The virtual copies of the products are called BIM objects and contain a three-dimensional image of the product as well as all necessary building facts such as product information, installation instructions, energy consumption, environmental labeling, operating expenses and product life. BIM models of buildings can be combined with AR (augmented reality) and VR (virtual reality), making it possible to compare different material or lighting choices and consider how they affect the experience of the space. Studies have shown that BIM technology reduces project times, material costs and paper consumption. As a result, governments in several countries have decided to use the technology for infrastructure projects. With BIM technology, all stakeholders work based on the same information model, which provides major synergistic benefits: information never has to be duplicated, and all information is available for everyone in real time. Evolution Drafting has evolved from hand-drawn plans to computer-aided drawing (CAD) and finally to full BIM models. 1 2 Hand-drawn plans 3D/CAD drawing 3 BIM BIMOBJECT ANNUAL REPORT

20 INTRODUCTION MARKET Analog methods will disappear with BIM technology About USD 9 trillion is currently spent in the global construction industry market, with an annual growth rate of 2 3 percent expected over the next five-year period. The emerging economies, which account for 50 percent of the market, are growing at a faster pace than the developed economies. Growth is affected by fundamental trends such as demographic factors, urbanization, increased sustainability standards and technological developments. The construction industry is one of the least digitalized industries in the world, and construction costs in relation to other costs increase in the absence of productivity improvements. Inefficiencies in the construction industry are due to a variety of factors. Some are structural, with many tasks performed by different expert groups, and are characteristic of traditional craftsmanship. However, in many cases inefficiency in the construction industry is the result of traditional methods used for project planning, drawings and procurement on paper, or in PDF format. Current work processes often lead to expensive information gaps between architects, builders and clients. However, the situation is rapidly changing as BIM technology gains ground, driven by the cost and environmental advantages associated with shared and cohesive information and modeling. Since its inception, BIMobject has worked on developing and establishing a platform to provide virtual products that users all over the world can download for free. BIMobject focuses on a niche at the center of the future digitalized construction and property industry making BIM objects available in the form of digital building and interior products. From the start, BIMobject has focused on building a global, cloud-based and fully scalable platform based on the single source of truth concept. The BIMobject Cloud currently (March 2018) has over 740,000 users, over 45,000 product families and 298,000 BIM objects. 20 BIMOBJECT ANNUAL REPORT 2017

21 MARKET INTRODUCTION BIMobject s potential market comprises the aggregate value of the needs of potential customers for BIM-related services. The table on page 22 shows BIMobject s potential customers and the service areas that BIMobject has identified as its market. Most currently existing BIM objects are generic design components such as doors, windows, toilets and lamps. These objects are now replacing older two-dimensional CAD symbols in BIM models. However, there is a growing initiative to develop manufacturer-specific BIM objects, in contrast with the generic objects. Accessibility to these objects, however, is more or less limited since they are on CD discs, local website and the manufacturers own websites. BIM is becoming increasingly common, but CAD dominates The global construction and interior industry today consists of several million CAD users who mainly work with two-dimensional CAD, such as AutoCAD. The transition to BIM began spreading past early adopters about ten years ago. Today there are many active BIM users scattered all over the world, and the majority use ArchiCAD, Autodesk Revit, Bentley Microstation, Nemetscheck, and Vectorworks. However, BIMobject s market is still in an early development phase. The predominant offerings are development of BIM objects and online services for publication of the objects in the cloud or on private platforms. BIMobject holds the opinion that the market will grow exponentially as digitalization and BIM technology gain ground worldwide. The potential value in the form of increased productivity at multiple levels that is associated with BIM is greatly appreciated. BIMOBJECT ANNUAL REPORT

22 INTRODUCTION MARKET BIMobject s potential market SERVICES CUSTOMER/ TARGET GROUP POTENTIAL STATUS BIMobject Cloud The BIMobject Cloud is a cloud-based global platform for publication, storage and downloading of BIM objects BIMscript and development BIMscript is an efficient solution for developing BIM objects that also includes conversion of older file formats. Hercules Hercules is a private cloud solution for manufacturers, property owners, or users who want to build their own cloud-based platform tailored to their own needs. BIManalytics Core The service analyses the potential market, customer behaviors and demand for individual objects. Ancillary services This includes services that BIM specialists develop to optimize the benefits of BIM. Advertisements and promotion Marketing of varied products Manufacturers of building and interior products that address global, regional and/or local markets who want to market their products. Distributors and other intermediaries who currently run their own webshops and manage expensive product databases and PIM databases. BIMobject holds the opinion that these participants will benefit from substantial added value by purchasing this service from BIMobject. Property owners and occupants such as store, hotel and restaurant chains, who streamline both the construction and the administration phase by creating private clouds for storage of BIM models and a selection of BIM objects specific to their operations. Third-party vendors that would like to sell BIM-related products and services. Users Architects, engineers and construction companies who use the objects for design, project planning and construction. Currently there are about 30,000 manufacturers on the markets in which BIMobject operates (excluding China). Manufacturers spend an average of two percent of sales on product marketing (in addition to market communications), equivalent to EUR 10 billion in global marketing expenses. BIMobject s business concept is based on moving a large part of this product marketing to the cloud and digital platforms such as the BIMobject Cloud. There are currently a number of manufacturers on the leading edge of digitalization who offer all or part of their range of products as BIM objects. We hold the opinion that both the number of manufacturers and the number of published BIM objects per manufacturer will grow dramatically over the next few years. The potential is high, but it is still difficult to know at this time how the supply chain from manufacturer to end customer will be affected. Currently, delivery of manufacturers' products is handled by intermediaries who deal with warehousing, purchases and deliveries. However, increased control and transparency will change the role of intermediaries. The value of the global property portfolio was estimated at USD 228 trillion by the market research company Saville in Given that BIM technology can provide savings of up to 20 percent of the property s life cycle cost, there is strong incentive to digitalize property management. The process relies on quick and efficient development of BIM objects (BIMscript), as well as intelligent and future-proof platforms for storing these objects (Hercules). BIM technology is much more than BIM objects and the more companies that develop products and services that make it easier for BIM technology to spread, the greater the demand for high-quality BIM objects and a common reliable database using high-quality data. The BIMobject Cloud is currently offered to users at no charge. However, there are opportunities to offer this group premium and value-generating services that can create new sources of revenue. BIMobject has about 1,100 manufacturers as customers. Customers drive the digitalization process incrementally, which means that they begin on a small scale and then gradually expand the digital offering of BIM objects to include the entire line of products. Earnings from manufacturers consist of project revenue from developing BIM objects and private clouds, as well as recurring online services through subscriptions for publishing and using tools in the platform. BIMobject currently has partnerships with distributors such as Solar in Denmark and Nohara in Japan. In 2017 BIMobject created a business area, Digital Buildings, that is dedicated to this enormous submarket. Currently there are a number of Hercules clouds, including the British Ministry of Justice and Riksbyggen, which provide inspirational references. Developers of BIM software or BIM-related services will want to market them to both users and property owners. BIMobject strives to offer a market-leading channel for this purpose. Today over 740,000 registered users employ this service. 22 BIMOBJECT ANNUAL REPORT 2017

23 MARKET INTRODUCTION Unstoppable structural trends pave the way for BIMobject The digitally outdated construction industry is affected by a number of strong global trends that drive the needs for new and more efficient infrastructure projects and buildings. We have identified 4 trends: Urbanization Population growth Elevated sustainability standards Technological development and digitalization The rapid industrialization of emerging markets such as China, India and Brazil leads to an increased use of BIM technology within industry. Digitalization within industrial building projects is expected to lead to cost savings of about percent. In parallel with increased demand in emerging markets, demand is also growing in North America and Europe, especially from government agencies. One specific example of this is the British Ministry of Justice, which is using BIMobject s cloud-based Hercules solution to develop its digital content library. Last year Zion Market Research valued the global BIM market at USD 3.52 billion, and the market is expected to grow to USD billion by This means an average annual growth rate of almost 20 percent between 2017 and Disruptive driving forces create opportunities for major efficiency and sustainability gains Rapid digitalization combined with the focus on sustainability drive BIMobject s market in pace with the increased activity within the global construction industry. At the same time, government regulatory authorities are taking the initiative to increase the use of BIM technologies. End-users of BIM technologies are expected to increasingly use the new technology in parallel with the growing number of building projects. BIMOBJECT ANNUAL REPORT

24 INTRODUCTION MARKET Technological advances within cloud-based and mobile solutions will further boost demand for BIM technology as it improves visualization, increases productivity and accelerates delivery, at the same time that it cuts costs. In summary, BIM provides major efficiency and sustainability gains, the five most important of which are shown below: Better information about fundamental requirements: Digital technologies make it easier to collect and analyse fundamental data for new construction projects, or to create digital copies for existing buildings. Ground conditions can be mapped using technologies such as 3D scanning and drones that film and scan land areas that are then linked to geological and climate data. The right information is always accessible to everyone Traditional 3D models are supplemented by two additional dimensions. The fourth dimension takes into account project expenses, and the fifth dimension enters project planning information, i.e. the dependencies between different types of activities in a construction project. All stakeholders in the process have access to all 5 dimensions, which allows total transparency. Intelligent and automatic administration system A faster internet and Internet of Things (IoT) where things are connected to one another opens the door for intelligent administrative and decision-making systems that take decisions about repairs, service or other measures, based on given parameters. Technology creates possibilities for new services for customers and users. Reduced waste, transport services and energy consumption Measurability is essential for improvement. BIM makes it possible already at the planning stage to measure and optimise parameters such as the building s energy consumption, heating and/or acoustic properties and environmental impact. Wrong deliveries, waste and unnecessary transports are minimized, while capacity utilization of labor improves. Collaboration in the cloud all stakeholders can see the relevant model in real time With all information in one place and models in the cloud that can be studied at various levels of detail, collaboration is possible via digital platforms such as the BIMobject Cloud. Staff out in the field can use their mobile devices to upload or retrieve information about the actual room or product. Global Building Information Modeling (BIM) market, Sales, billion USD Source: Zion Market Research 24 BIMOBJECT ANNUAL REPORT 2017

25 MARKET INTRODUCTION Competitors BIMobject s competitors can be divided into three categories: CAD/BIM software companies, regionally/nationally established companies that are early adopters and local information service companies. The software companies were initially producers of BIM objects that they made accessible in their design programs, but since BIMobject supports essentially all design software programs on the market the major participants such as Autodesk and Graphisoft Bentley have become partners. Nationally and regionally based competitors Some national markets have local IT companies that have established national market-leading positions by developing CAD/BIM files at the request of major regional brands and manufacturers. The hope is that these participants will become future business partners and supply BIM objects and ancillary services for BIMobject s platforms. By offering BIMscript free of charge to accredited developers and partners, BIMobject makes it possible for everyone to develop BIM objects and publish them on the BIMobject Cloud. Local information service companies (portals) There are two types of companies in this category: younger, dynamic portals and older, traditional information brokers. Portal companies such as Bygg fakta Docu, cobuilder and BIMinfo are very openminded and we would like to serve as their BIM object warehouse. The other category is publishing companies and collectors of data about building components. They are local and work extensively with catalogs and production of paper magazines where they sell advert slots to manufacturers. Companies in this category include McGraw Hill with Sweets (USA), PINI (Brazil) and Svensk Byggtjänst (Sweden). Our strategy is to emphasize the mutual benefits and connect them as channels to the BIMobject portal. Examples of competitors: BIMsmith SmartBIM Syncronia Polantis Arcat NBL Sweets BIMhub CoBuilder MagiCloud BIMOBJECT ANNUAL REPORT

26 FINANCIAL STATEMENTS ADMINISTRATION REPORT Administration Report About the report This annual report relates to financial year 2017 for the Group BIMobject AB (publ), corporate identity number , which has its headquarters in Malmö, Sweden. Brief information BIMobject AB is a global technology company that develops cloud solutions and services within building information modelling (BIM), with a focus on digitization of products. BIMobject AB is a public company listed on Nasdaq First North Stockholm and is the recipient of the Red Herring 100 Global Award. We are one of the world s fastest-growing businesses in digitization of products and product information, with over 23 million downloads of BIM objects on our product portal. We develop unique cloud solutions that are currently used by more than 740,000 professional users worldwide. BIMobject is a business that creates an internet-based platform with a new approach to working digitally with sales and marketing, while creating new communication channels between manufacturers and professionals such as architects, construction companies, designers and engineers in the construction industry. During the year BIMobject AB has driven subsidiaries with operations in the UK, France, Italy, Poland, Spain, Germany, Hungary, and the US. During the period companies were started in Hong Kong and Japan. Multi-year overview Group SEK m Billing during the period Net sales Projects in % of sales Licences in % of sales Gross profit Gross margin 87% 85% 78% 73% Operating profit/loss (EBIT) Profit/loss for the period Earnings per share*, SEK Number of users accum., thousands Number of downloads accum., thousands 18,533 7,320 3,911 1,514 Number of product families accum., thousands Number of FTEs * Basic earnings per share There are 492,750 issued warrants. Each warrant entitles the holder to subscribe to two shares. SEK m Invoicing Nordic region Invoicing EMEA, without the Nordic region Invoicing North America Invoicing Asia 0 Total BIMOBJECT ANNUAL REPORT 2017

27 ADMINISTRATION REPORT FINANCIAL STATEMENTS Net sales Consolidated net sales for financial year 2017 totalled SEK 82,602k (33,392k), an increase of 147 per cent. Invoicing for 2017 totalled SEK 112,785k (39,140k). Certain services and projects are invoiced in whole or in part in advance. At the end of the year, accruals amounted to SEK 30,183k (5,748k). The parent company s net sales for financial year 2017 totalled SEK 31,512 thousand (17,555), an increase of 80 per cent compared with full-year Profit/Loss The Group s loss for 2017 was SEK 51,516k (loss: 39,658k). High growth and market leadership are the top priorities of the Board of Directors. The strategy entails high costs in relation to sales to build up a sales organization and to develop the online platform with ancillary services. This relationship is expected to continue for some time as it is necessary for fast growth and to conquer the leading position. Consolidated earnings per share for full-year 2017 was SEK (-0.90) basic and SEK (-0.88) diluted. Cash flow Cash flow for current operations was SEK -60,637k (-36,618k), and cash flow for investing activities had a negative impact on cash flow of SEK -7,961k (-1,055k). Cash flow from financing activities was SEK 167,841k (97k) and consolidated cash flow totalled SEK 99,243k (-37,576k). This positive cash flow from financing activities reflects the addition of SEK 166 million after transaction costs that BIMobject raised through the rights issue in January. As a result of the new issue of shares the listed Danish company Solar A S became the largest owner. Future developments Over the next few years BIMobject will continue to invest in marketing, sales and product development, with the long-term goal of building, strengthening and securing its position as a supplier of marketing tools to the construction and furniture industry. Significant events during the financial year The Danish sourcing company Solar became the largest owner through a directed share issue that raised about SEK 166 million for the company. BIMobject took over Autodesk Seek s business, including about 270 customer agreements with an estimated annual income of SEK 35 million. BIMobject established companies in Japan together with NOHARA, the Japanese distributor of building and interior products. BIMobject decided to launch bim.com, an app store for bim-related applications Significant events after the financial year-end BIMobject released a new open file format as a solution to industry problems. Mark Haddad was recruited as new CEO for the North American subsidiary. Warrants At year-end 2017 there were two warrant series: On 16 June 2015 the Annual General Meeting of Shareholders of BIMobject AB decided to carry out a directed issue of warrants with the right to subscribe for new shares in the Company. There are 342,500 outstanding warrants from the 2015/2018 series that entitle the holders to subscribe for 685,000 shares in the Company. The warrants are issued to the Company s employees and key personnel. The exercise period for warrants from the 2015/2018 series runs from 10 August 2018 through 31 August If the outstanding warrants from the 2015/2018 series are fully exercised, BIMobject s share capital will increase by a maximum of SEK 15,070. The complete terms and conditions for the warrants in the 2015/2018 series can be found on the Company s website On 14 June 2016 the Annual General Meeting of Shareholders of BIMobject AB decided to carry out a directed issue of warrants with the right to subscribe for new shares in the Company. There are 150,250 outstanding warrants from the 2016/2019 series that entitle the holders to subscribe for 300,500 shares in the Company. The warrants can be issued when hiring key personnel. The exercise period for warrants from the 2016/2019 series runs from 19 August 2019 through 9 September If the outstanding warrants from the 2016/2019 series are fully exercised, BIMobject s share capital will increase by a maximum of SEK 6,611. The complete terms and conditions for the warrants in the 2016/2019 series can be found on the Company s website BIMOBJECT ANNUAL REPORT

28 FINANCIAL STATEMENTS ADMINISTRATION REPORT Risks and uncertainties A number of risk factors could have a negative impact on BIMobject s business and industry. It is therefore important to consider the relevant risks along with the Company s growth opportunities. BIMobject s contacts with customers and business partners are relatively recently established and their future prospects can be difficult to evaluate. Market launches could be delayed, which would result in a loss of revenue. The company s services are relatively new to market participants, which means that it could take time to achieve customer acceptance and a breakthrough on the market. BIMobject could need to raise additional capital in the future. There is a risk that the company may be unable to raise additional capital, achieve a partnership or arrange some other form of co-financing. A loss of one or more key personnel, employees and consultants could entail negative consequences for the Company s business and results of operations. An extensive investment by a competitor could entail risk for reduced sales potential. A recession for the company s customers in the construction industry could have a negative impact on BIMobject s future revenue and resources for investing, as well as the company s competitiveness and ability to retain employees. The Group has a currency translation risk relating to translation of foreign subsidiaries. Fluctuating exchange rates can entail a currency risk for the parent company regarding purchasing and sales carried out in foreign currencies. Naturally, all risk factors cannot be assessed without conducting a complete evaluation of the Company s operations along with a general business analysis. The share The BIMobject share is listed on NASDAQ Stockholm First North under the ticker BIM. There is only one class of shares and all shares have the same right to dividends and carry entitlement to one vote per share at shareholders' meetings. The total number of outstanding shares at the beginning of the period (1 Jan. 2017) was 43,778,688 and the number of shares at year-end (31 Dec. 2017) was 51,717,254. The corresponding figures for the total number of shares the previous year were 21,889,344 and 43,778,688, respectively. The par value is SEK per share. Table showing the trend for share capital: Year Event Par value Number of shares Change in share capital Total number of shares Total share capital 2017 Rights issue ,938, ,648 51,717,254 1,137, Share performance At the end of 2017 the market capitalization was about SEK 1,262 million (735) and BIMobject s share price was SEK (16.8). The share price reached a 52-week high of SEK (March) and a 52-week low of SEK (January). In 2017, 19,134,406 BIMobject shares were traded on First North Nasdaq Stockholm, which corresponds to an average turnover per trading day of 76,233 shares. Share data 2017 Marketplace Listed 2014 Sector Ticker Currency Nasdaq First North Technology BIM ISIN code: SE SEK Number of shares 51,717, week high 2017 SEK week low 2017 SEK Closing rate 2017 SEK Share price performance % Trading turnover, number of shares 19,134,406 Largest shareholders as at 31 December 2017 The table below shows the list of shareholders of BIMobject who own more than 10 per cent of votes and capital, at the end of the period. Name Number of shares Number of votes and capital Solar A/S 10,350, % Procedural Labs AB 5,945, % Others (about 1,500 shareholders) 35,421, % Total 51,717, % Procedural Labs AB is wholly owned by Board member and CEO Stefan Larsson. 28 BIMOBJECT ANNUAL REPORT 2017

29 ADMINISTRATION REPORT FINANCIAL STATEMENTS Statement of changes in equity Group Share capital Other paid-in capital Reserves Retained earnings incl. profit/loss for the year Total Opening balance , ,608 12,126 Profit/loss for the year -51,516-51,516 Changes in retained earnings Exchange rate differences Transactions with owners Rights issue , ,710 Employee stock options 1,131 1,131 Total 167, ,667 AT YEAR-END 1, , , ,728 Restricted equity Non-restricted equity Parent Company Share capital Share premium reserve Retained earnings incl. profit/loss for the year Total equity Opening balance , ,718 14,566 Rights issue , ,710 Employee stock options 1,131 1,131 Profit/loss for the year -45,163-45,163 AT YEAR-END 1, , , ,245 Board of Directors proposed appropriation of BIMobject s profit or loss The Board of Directors and the CEO propose that no dividend be paid for the financial year 1 Jan to 31 Dec Regarding the Company's financial performance and position in general, please refer to the following income statements and balance sheets and related accounting policies and notes. At the disposal of the Annual General Meeting: Retained earnings 181,270,056 Loss for the year -45,162,760 Total 136,107,296 Proposed amount to be carried forward: 136,107,296 Total 136,107,296 BIMOBJECT ANNUAL REPORT

30 FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT Consolidated income statement SEK '000 Note Operating revenue Net sales ,602 33,392 Capitalized work on own account 2,520 Other operating income 1, Total operating income, etc. 86,934 34,008 Operating costs Production costs -11,381-5,127 Other external costs 4-45,388-25,487 Personnel costs 5-72,768-41,354 Depreciation/Amortization/Impairment -2,305-1,057 Other operating expenses -5,493-1,567 Operating profit/loss after depreciation, amortization and impairment -50,400-40,584 Financial income and expenses Profit/loss from financial assets Profit/loss from other securities and receivables classified as non-current assets ,270 Interest income and similar profit/loss items Interest expense and similar profit/loss items Profit/loss after financial income and expenses -50,803-39,436 Profit/loss before tax -50,803-39,436 Tax Loss for the year -51,516-39,658 Attributable to owners of the parent company -51,516-39, BIMOBJECT ANNUAL REPORT 2017

31 CONSOLIDATED BALANCE SHEET FINANCIAL STATEMENTS Consolidated balance sheet SEK '000 Note ASSETS Non-current assets Intangible non-current assets Capitalized expenditure for research and development and similar work 10 2, Concessions, patents, licences, trademarks and similar rights 11 1,021 1,340 Advance payments for intangible non-current assets 86 0 Property, plant and equipment Equipment, tools, fixtures, and fittings 12 4,699 1,377 Financial assets Participations in associated companies Other non-current receivables Deferred tax asset Total Non-current assets 8,589 2,933 Currents assets Current receivables Advances paid to suppliers Trade receivables 59,401 17,478 Other current receivables 2,312 4,057 Prepayments and accrued income 1,626 1,757 Current investments 91,743 4,991 Cash and cash equivalents 21,355 8,863 Total current assets 176,457 37,173 TOTAL ASSETS 185,046 40,106 EQUITY, PROVISIONS AND LIABILITIES Shareholders' equity Restricted equity Share capital 1, Other paid-in capital 277, ,771 Reserves 0 0 Retained earnings including profit/loss for the year -149,848-98,608 Total Equity 128,728 12,126 Provisions Current liabilities Advances from customers Accounts payable 5,183 5,046 Tax liabilities Other liabilities 7,134 5,984 Accrued expenses and prepaid income 42,111 16,289 Total Current liabilities 55,372 27,688 TOTAL EQUITY, PROVISIONS AND LIABILITIES 185,046 40,106 BIMOBJECT ANNUAL REPORT

32 FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF CASH FLOWS Consolidated statement of cash flows SEK '000 Note Operating activities Profit/loss after financial items -50,803-39,436 Adjustments for non-cash items 3, Tax paid Cash flow from operating activities before working capital changes -48,279-38,608 Cash flow before working capital changes Increase(-)/Decrease(+) in operating receivables -40,041-14,319 Increase(+)/Decrease(-) in operating liabilities 27,684 16,308 Cash flow from operating activities -60,637-36,618 Investing activities Acquisition of intangible non-current assets -2, Acquisition of property, plant and equipment -4, Investments in financial assets Cash flow from investing activities -7,961-1,055 Financing activities New issue of shares and employee stock options 167, Cash flow from financing activities 167, Cash flow for the period 99,243-37,576 Cash and cash equivalents at start of period 13,854 51,430 Cash and cash equivalents at close of period 113,097 13,854 Supplementary disclosures to cash flow statement Interest paid and dividend received Interest received 0 0 Interest paid Adjustments for non-cash items Depreciation, amortization and impairment of assets 2,305 1,057 Provisions Unrealized exchange differences Total 3, BIMOBJECT ANNUAL REPORT 2017

33 PARENT COMPANY INCOME STATEMENT FINANCIAL STATEMENTS Parent company income statement SEK '000 Note Operating revenue Net sales ,512 17,555 Other operating income Total operating income, etc. 31,563 17,990 Operating costs Production costs -12,907-8,135 Other external costs 4-38,714-29,121 Personnel costs 5-23,828-18,682 Depreciation/Amortization/Impairment -1, Other operating expenses Operating profit/loss after depreciation, amortization and impairment -45,035-38,897 Financial income and expenses Profit/loss from financial assets Profit/loss from other securities and receivables ,270 Interest income and similar profit/loss items Interest expense and similar profit/loss items Profit/loss after financial income and expenses -45,163-37,703 Profit/loss before tax -45,163-37,703 Loss for the year -45,163-37,703 BIMOBJECT ANNUAL REPORT

34 FINANCIAL STATEMENTS PARENT COMPANY BALANCE SHEET Parent company balance sheet SEK '000 Note 31 Dec Dec ASSETS Non-current assets Intangible non-current assets Capitalized expenditure for research and development and similar work Concessions, patents, licences, trademarks and similar rights ,264 Property, plant and equipment Equipment, tools, fixtures, and fittings 12 2, Financial assets Participations in Group companies 13 2,017 1,067 Receivables from Group companies 14 6,909 4,247 Participations in associated companies Total Non-current assets 12,125 7,259 Currents assets Receivables Trade receivables 17,571 6,401 Receivables, Group companies 27,035 5,273 Other current receivables 1,565 1,364 Prepayments and accrued income 1,473 1,417 Current investments 91,743 4,991 Cash and cash equivalents 17 5,706 4,667 Total current assets 145,092 24,114 TOTAL ASSETS 157,217 31,373 EQUITY, PROVISIONS AND LIABILITIES Shareholders' equity Restricted equity Share capital 1, Non-restricted equity Share premium reserve 281, ,321 Profit or loss brought forward -100,718-63,015 Profit/loss for the year -45,163-37,703 Total Non-restricted equity 136,107 13,603 Total Equity 137,245 14,566 Current liabilities Advances from customers Accounts payable 3,854 4,554 Accounts payable to group companies 1, Tax liabilities Other liabilities 1, Liability to client 18 4,297 2,654 Accrued expenses and prepaid income 7,185 7,946 Accrued expenses and prepaid income relating to group companies Accrued expenses and deferred income relating to associated companies 2,058 0 Total Current liabilities 19,972 16,807 TOTAL EQUITY, PROVISIONS AND LIABILITIES 157,217 31, BIMOBJECT ANNUAL REPORT 2017

35 PARENT COMPANY S STATEMENT OF CASH FLOWS FINANCIAL STATEMENTS Parent company statement of cash flows SEK '000 Note Operating activities Profit/loss after financial items -45,163-37,703 Adjustments for non-cash items 1, Tax paid Cash flow from operating activities before working capital changes -44,181-37,017 Cash flow before working capital changes Increase(-)/Decrease(+) in operating receivables -33,189-7,990 Increase(+)/Decrease(-) in operating liabilities 3,197 8,338 Cash flow from operating activities -74,173-36,669 Investing activities Acquisition of intangible non-current assets 0 0 Acquisition of property, plant and equipment -2, Investments in financial assets -3,653-2,025 Cash flow from investing activities -5,878-2,455 Financing activities Rights issue 167, Cash flow from financing activities 167, Cash flow for the period 87,790-39,027 Cash and cash equivalents at start of period 9,658 48,685 Cash and cash equivalents at close of period 15 97,448 9,658 Supplementary disclosures to cash flow statement Interest paid and dividend received Interest received Interest paid Adjustments for non-cash items Depreciation, amortization and impairment of assets 1, BIMOBJECT ANNUAL REPORT

36 FINANCIAL STATEMENTS NOTES Notes Note 1. Accounting policies The annual accounts have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Accounting Standards Board BFNAR 2012:1 Annual Report and consolidated financial statements (K3). The parent company applies the same accounting policies as the Group. Assets, provisions and liabilities are stated at cost, unless otherwise indicated below. Intangible assets Research and development costs The capitalization model is applied to the recognition of development costs This means that costs incurred during the development phase are recognized as an asset when all of the following criteria are met: It is technically feasible to complete the intangible non-current asset so that it can be used or sold. The intent is to complete the intangible non-current asset and to use or sell it. Conditions are in place to use or sell the intangible non-current asset. It is likely that the intangible non-current asset will generate future economic benefit. There are adequate and necessary technical, economic and other resources to complete development and to use or sell the intangible non-current asset. Costs attributable to the intangible non-current asset can be reliably estimated. Internally generated intangible non-current assets are stated at cost less accumulated depreciation and impairment losses. Other intangible non-current assets Other intangible non-current assets that are acquired are stated at cost less accumulated depreciation and impairment losses. Costs for internally generated trademarks are expensed in profit or loss as incurred. Depreciation/Amortization/Impairment Assets are depreciated on a straight-line basis over the estimated useful life of the asset. Depreciation is expensed in the income statement. Property, plant and equipment Property, plant, and equipment are stated at cost less accumulated depreciation and impairment losses. In addition to the purchase price, cost includes expenses that are directly attributable to the acquisition. Depreciation/Amortization/Impairment Depreciation is applied on a straight-line basis over the estimated useful life of the asset, since it reflects the anticipated consumption of the asset s future economic benefits. Depreciation is expensed in the income statement. Equipment, tools, fixtures, and fittings Leases Useful life 5 years All leases have been classified as operating leases. An operating lease is a lease that is not a finance lease. Operating leases Lease payments according to operating leases, including higher first-time rent but excluding the cost of services such as insurance and maintenance, are expensed on a straight-line basis over the lease term. Foreign currency Items in foreign currency Monetary items in foreign currencies are translated based on the exchange rate applying on the balance sheet date. Non-monetary items are not translated but are instead recognised at the transaction day rate. Exchange rate differences arising from the adjustment or translation of monetary items are recognized in the income statement for the financial year in which they arise. Translation of foreign operations Assets and liabilities, including goodwill and other consolidated premiums and discounts, are translated to the reporting currency at closing day rates. Revenue and expenses are translated at the spot rate on each transaction date unless a rate representing an approximation of the actual rate is used (e.g., average rate). Exchange rate differences that arise are recognized directly in equity. Internally generated intangible assets Capitalized expenditure for development and similar work Intangible assets acquired Concessions, patents and similar rights 5 years Useful life 5 years 5 years Financial assets and liabilities Financial assets and liabilities are recognized in accordance with Chapter 11 (Financial instruments valued at cost) of the Swedish Accounting Standards Board, BFNAR 2012:1. 36 BIMOBJECT ANNUAL REPORT 2017

37 NOTES FINANCIAL STATEMENTS Balance sheet recognition and derecognition A financial asset or financial liability is recognized on the balance sheet when the company becomes party to the instrument s contractual terms. A financial asset is derecognized from the balance sheet when the contractual right to the cash flow generated by the asset has lapsed or been settled. The same applies when the risks and benefits associated with ownership have been transferred to another party in all material respects, and the company no longer has control of the financial asset. A financial liability is derecognized when the contractual obligation is fulfilled or has lapsed. Measurement of financial assets On initial recognition, financial assets are measured at cost, including any transaction expenses that are directly attributable to the acquisition of the asset. After initial recognition, financial current assets are valued at the lower of the cost basis and the net realisable value as at the balance sheet date. Trade receivables and other receivables that comprise current assets are measured individually at the amount that is expected to be received. Following initial recognition, financial assets are measured at cost less any impairment and plus any upward adjustments. Measurement of financial liabilities The parent company and the Group have no non-current financial liabilities. Current liabilities are recognized at cost. Remuneration to employees Post-employment employee benefits Classification Post-employment benefit plans are either classified as defined contribution or defined-benefit. In the case of defined-contribution plans, defined contributions are paid to another company, usually an insurance company, and the company is no longer under any obligation to the employee once the contribution has been paid in. The amount of the employee s post-employment benefits depends on the contributions paid in, and on the return earned on such contributions. For defined benefit plans, the company has an obligation to provide the agreed benefits to current and former employees. In all material aspects, the company carries the risk that the benefits will be higher than expected (actuarial risk), as well as the risk that the return on the assets will deviate from expectations (investment risk). Investment risk also exists if the assets are transferred to another company. Defined-contribution plans Contributions for defined-contribution plans are recognized as expenses. Unpaid contributions are recognized as liabilities. Defined-benefit plans The Company has chosen to apply the simplification rules in BFNAR 2012:1. Plans for which pension premiums are paid are recognized as defined-contribution plans, which means that the contributions are expensed in the income statement. Pension obligations in the Group s foreign subsidiaries are recognized in the same way as in the foreign subsidiary. Share-based payments Employees who subscribed for warrants have paid an amount for the warrants corresponding to the estimated market value at the time of the subscription. The market value of the warrants was calculated using the Black & Scholes valuation model. Since the warrants were acquired at market price there is no amount for BIMobject to expense as a share-based payment. Tax Tax on profit/loss for the year in the income statement consists of current tax and deferred tax. Current tax is calculated on the taxable profit for the period and the part of income for the previous financial year, on which income tax has not yet been reported. Deferred tax is the income tax for taxable income relating to future financial years as a result of past transactions or events. Deferred tax assets have been valued to the highest sum that will likely be recovered based on present and future taxable earnings. The valuation is reviewed on each balance sheet date. In the consolidated balance sheet, untaxed reserves are divided between deferred tax and equity. Provisions A provision is reported in the balance sheet when the company has a legal or informal obligation as a result of an event which has occurred, and it is likely that an outflow of resources will be required in order to settle the obligation, and a reliable estimation of the amount can be made. At initial recognition, provisions are measured at the best estimate of the amount that will be required to settle the liability on the balance sheet date. Provisions are reviewed on each balance sheet date. Revenue The influx of financial benefits that the company received or will receive for its own account is recognized as revenue. Revenue is measured as the fair value of the consideration received or receivable, with a deduction for discounts. Revenue consists in part of compensation for production of objects, and in part for web service for access to various tools on the website. Of BIMobject s two primary revenue areas, project and web services, web services are invoiced in advance as a subscription service. The invoiced amount is accrued over the term of the agreement and treated as deferred income. For project revenue, 50% is received at the start of the project. This portion of revenue is also treated as deferred income. Service assignments and contract assignments - fixed price Fixed-price service assignments are recognized as revenue as the work is carried out, according to the percentage-of-completion method. When the outcome of an assignment can be reliably estimated, the assignment revenue and related expenses are recognized according to the degree of completion of the activities in the agreement on the balance sheet date. Revenue is measured at fair value for remuneration that has been received or receivable in relation to the degree of completion. When the outcome of an assignment cannot be estimated reliably, revenue is recognized only to the extent that it corresponds to the assignment costs incurred that are likely to be recoverable. Assignment expenses BIMOBJECT ANNUAL REPORT

38 FINANCIAL STATEMENTS NOTES are recognized in the period during which they arise. Degree of completion has been calculated as the costs of the assignment at the balance sheet date in relation to the total estimated costs to complete the assignment. When it is likely that total assignment costs will exceed total assignment income, the estimated loss is recognized immediately in profit and loss. Production costs The term Production costs in the income statements corresponds with Raw materials and consumables and Goods for resale and is used to more clearly reflect the nature of the business, digital production, and corresponds with costs for production of the customers objects. Consolidated financial statements: Subsidiaries Subsidiaries are entities in which the parent company directly or indirectly holds more than 50% of the voting rights or otherwise has a controlling influence. Controlling interest entails the right to determine a company s financial and operative strategies to obtain economic benefits. Accounting for business combinations is based on the entity approach. This means that the acquisition analysis is prepared as of the date when the acquirer gains a controlling influence. From this point the acquirer and the acquiree are viewed as a single accounting unit. Application of the economic entity view entails that all assets (including goodwill) and liabilities as well as revenues and expenses are included in their entirety even for subsidiaries that are not wholly owned. The cost of the subsidiary is calculated as the sum of fair value at the acquisition date for purchased assets with the addition of incurred and assumed liabilities and equity instruments issued, costs directly attributable to the business combination and any additional consideration. The acquisition analysis determines the fair value, with some exceptions, at the acquisition date of acquired identifiable assets, assumed liabilities and any non-controlling interests. Non-controlling interest is measured at fair value at the acquisition date. The revenues and expenses, identifiable assets and liabilities and any goodwill or negative goodwill of the acquired company are included in the consolidated financial statements from the acquisition date. Associates Associated companies are companies over which the Group has a significant, but not controlling influence in terms of operational and financial control, usually through a holding of between 20 and 50 percent of the total number of votes. Holdings in associated companies are recognized in the consolidated financial statements using equity method. According to the equity method, the carrying amount of the shares in associated companies recognized in the Group should correspond to the Group s share of the equity in the associated companies, as well as goodwill and any adjustments in fair value recognized on the date of acquisition BIMobject s share of the earnings of associated companies with adjustments for dissolution of premiums or discounts on acquisition is recognized as a separate item in the consolidated income statement. NOTE 2. Deferred income Of BIMobject s two primary revenue areas, project and web services, web services are invoiced in advance as a subscription service. The invoiced amount is accrued over the term of the agreement and treated as deferred income. For project revenue, 50% is received at the start of the project. This portion of revenue is also treated as deferred income. Parent company Group Revenue Billing 36,491 21, ,785 39,140 Deferred income -4,928-4,125-28,371-5,748 Total sales 31,563 17,555 84,414 33,392 NOTE 3. Intra-Group sales Of the parent company s total purchases and sales denominated in SEK, 27.9% (52.2%) of purchases and 28.9% (0.9%) of sales relate to other companies within the entire group of companies to which the company belongs. NOTE 4. Leases where the company is lessee Group Future minimum lease payments relating to non-cancellable operating leases 31 Dec Dec Within 1 year 3,145 3,629 Between one and five years 6,466 6,017 Longer than five years Total 9,813 9,646 Group 31 Dec Dec The financial year s expensed lease payments 9,261 4,767 The majority of leasing payments consist of leases for offices in different countries. 38 BIMOBJECT ANNUAL REPORT 2017

39 NOTES FINANCIAL STATEMENTS Parent company 31 Dec Dec Future minimum lease payments relating to noncancellable operating leases Within 1 year 2,457 2,285 Between one and five years 2,129 3,868 Longer than five years 0 0 Total 4,586 6,153 Parent company 31 Dec Dec Parent company Group Salaries, other remuneration and social security costs CEO 1,794 1,214 8,894 3,876 Chairman of the Board 733 1, ,623 Board members 1, ,790 1,091 Employees 12,590 9,622 43,449 23,345 Total 16,260 12,917 54,866 31,935 Social security costs 6,471 5,092 12,359 7,847 (of which pension costs) , The financial year s expensed lease payments 3,528 1,578 Leases account for the majority of lease payments. The company has nine company cars. NOTE 5. Employees and personnel costs Parent company Group Average no. of employees Men Women Total NOTE 6. Profit/loss from other securities and receivables Parent company Group Dividend 1, ,459 0 Sale of fixed income funds Impairment of fixed income funds -1, ,956 0 Reversal of impaired fixed income funds Total , ,270 All employees in the parent company are resident in Sweden. Average no. of employees in the Group Men Women Total Men Women Total NOTE 7. Interest income and similar revenues Sweden Germany UK Hungary Italy US Poland Spain France Hong Kong Total Parent company Group Interest income, Group companies Interest income, other Total BIMOBJECT ANNUAL REPORT

40 FINANCIAL STATEMENTS NOTES NOTE 8. Interest expense and similar costs Parent company Group NOTE 10. Capitalized development costs Parent company Group Interest expense, other Exchange rate difference Total Accumulated cost Opening balance 1,007 1,007 1,018 1,018 Capitalization for the year 0 0 2,520 0 Total 1,007 1,007 3,538 1,018 NOTE 9. Tax Tax on profit/loss for the year Group Current tax expense Deferred tax Total Accumulated scheduled depreciation Opening balance Scheduled depreciation for the year Total -1, , Carrying amount, 31 December , Group Per cent Amount Per cent Amount NOTE 11. Concessions, patents, licences, trademarks and similar rights Profit/loss before tax -50,803-39,436 Tax according to applicable tax rate for the parent company 22.0% 11, % 8,676 Effect of other tax rates on foreign subsidiaries 0.8% % 111 Other non-deductible expenses 1.1% % -192 Increase in losses carried forward without equivalent capitalization of deferred tax -25.3% -12, % -8,817 Recognized effective tax -1.4% % -222 Parent company Per cent Amount Per cent Amount Profit/loss before tax -45,163-37,703 Tax according to applicable tax rate for the parent company 22.0% 9, % 8,295 Non-deductible expenses -1.3% % -140 Other 0.0% 0 0.0% 9 Increase in losses carried forward without equivalent capitalization of deferred tax -20.7% -9, % -8,163 Recognized effective tax 0.0% 0.0% Parent company Group Accumulated cost Opening balance 2,133 2,133 2,344 2,293 Capitalization for the year Exchange rate differences 39 Total 2,133 2,133 2,647 2,344 Accumulated scheduled depreciation Opening balance , Scheduled depreciation for the year Exchange rate differences -37 Total -1, ,626-1,004 Carrying amount, 31 December 840 1,263 1,021 1, BIMOBJECT ANNUAL REPORT 2017

41 NOTES FINANCIAL STATEMENTS NOTE 12. Machinery, equipment, tools, fixtures, and fittings Group Accumulated cost Opening balance ,178 1,288 Capitalization for the year 2, ,416 1,016 Exchange rate differences Total 3, ,653 2,178 Accumulated scheduled depreciation Opening balance Scheduled depreciation for the year , Exchange rate differences Total , Carrying amount, 31 December 2, ,699 1,377 NOTE 13. Shares in Group companies: 31 Dec Subsidiary Parent company Adjusted equity / Profit/ loss for the year SEK thousand Shares / number in %) Carrying amount in parent company 31 Dec Dec BIMobject Deutchland GmbH 346 1,000 HRB , Munich, Germany % BIMobject UK Ltd -1,804 1, , Newbury, England % 1 1 BIMobject Hungary Kft 1,222 1, , Budapest, Hungary % BIMobject Italy S.r.l ,000 IT , Milan, Italy % BIMobject Private Limited 0 10,000 U45400DL2013PTC262293, New Delhi 0 95%* 0 11 BIMobject Inc. -8,597 1, , St. Louis, USA -9, % 8 8 BIMobject Spain SL. 2,083 1,000 B , Madrid, Spain 1, % BIMobject Poland sp. z o.o. -3,075 10,000 Gliwice, Poland % BIMobject France SAS 1,382 Paris, France % 949 BIMobject Hong Kong Ltd Hong Kong % 11 BIMobject Sverige AB , Malmö, Sweden 0 100% BIMobject Group AB , Malmö, Sweden 0 100% Carrying amount in parent company 2,017 1,067 * Remaining 5% is indirectly owned through the wholly owned subsidiary BIMobject Deutchland GmbH. BIMOBJECT ANNUAL REPORT

42 FINANCIAL STATEMENTS NOTES NOTE 14. Receivables, Group companies NOTE 17. Cash and cash equivalents Parent company 31 Dec Dec The following are included in cash and cash equivalents: 31 Dec Dec Accumulated cost Opening balance 4,247 2,415 Additional receivables 2,230 1,564 Exchange rate differences for the year Carrying amount, 31 December 6,909 4,247 Bank accounts, SEK 4,688 3,611 Currency accounts 1,018 1,056 Fund units 91,743 4,991 Total 97,448 9,658 * An impairment charge of SEK 1,956 thousand (SEK 0 thousand) was recorded for the fund units. NOTE 15. Participations in associated companies 31 Dec Dec Accumulated cost Opening balance 0 0 Acquisitions for the year 41 0 Carrying amount, 31 December 41 0 NOTE 18. Liability to client Parent company 31 Dec Dec Invoiced, not yet completed projects 8,004 5,347 Of which completed -3,707-2,693 Carrying amount, 31 December 4,297 2,654 NOTE 16. Other non-current receivables Parent company Group NOTE 19. Pledged assets and contingent liabilities Parent company Group Revenue Accumulated cost Opening balance New loans Carrying amount, 31 December Pledged assets None None None None Contingent liabilities None None None None NOTE 20. Definitions of key ratios Balance sheet total: Equity ratio: Quick ratio: Number of employees: Total assets Total shareholders' equity / Total assets Current assets in proportion to current liabilities Average number employees during the year 42 BIMOBJECT ANNUAL REPORT 2017

43 SIGNATURES OF THE BOARD FINANCIAL STATEMENTS Malmö on 18 May 2018 Anders Wilhjelm Chairman of the Board Stefan Larsson Chief Executive Officer and Board member Phillippe Butty Board member Ben O Donnell Board member Johannes Reischböck Board member Michael Thydell Board member We submitted our auditor's report on 18 May 2018 KPMG AB David Olow Authorized Public Accountant, Auditor in Charge Jacob Kvarnhammar Authorized Public Accountant The consolidated statement of comprehensive income and the consolidated balance sheet and the Parent Company's income statement and balance sheet are subject to the approval of the Annual General Meeting on 8 June This information is information that BIMobject AB is obliged to make public pursuant to the Securities Markets Act. Information required for publication 18 May BIMOBJECT ANNUAL REPORT

44 FINANCIAL STATEMENTS AUDITOR S REPORT Auditor s report To the Annual General Meeting of the shareholders of BIMobject AB (publ), corp. id. no Report on the annual accounts and consolidated accounts Opinions We have audited the annual accounts and consolidated accounts of BIMobject AB for The annual accounts and consolidated accounts of the company are included in this document on pages In our opinion, the annual accounts and consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the parent company and the Group as of 31 December 2017 and of their financial performance and cash flows for the year then ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. We therefore recommend that the general meeting of the shareholders adopt the income statement and balance sheet for the parent company and the Group. Basis for Opinions We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor s Responsibilities section. We are independent of the parent company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Other information than the annual accounts and consolidated accounts This document also contains other information than the annual accounts and the consolidated financial accounts and can be found on pages The Board of Directors and the Managing Director are responsible for this other information. Our opinion regarding the annual accounts and consolidated accounts does not cover this information, and we make no statement of assurance regarding this other information. In connection with our audit of the annual accounts and consolidated accounts, it is our responsibility to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In this procedure, we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed on this information, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the President and CEO The Board of Directors and the Chief Executive Officer are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act. The Board of Directors and the Chief Executive Officer are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts and consolidated accounts, the Board of Directors and the Chief Executive Officer are responsible for the assessment of the ability of the Company and the Group to continue as a going concern. They disclose, as applicable, matters related to the ability to continue as a going concern and using the going concern basis of accounting. The going concern basis of accounting is, however, not applied if the Board of Directors and the Chief Executive Officer intend to liquidate the company, cease operations or have no realistic alternative but to do so. Auditor's responsibility Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to submit an auditor s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error, and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of the company s internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and, where applicable, the Chief Executive Officer. Conclude on the appropriateness of the Board of Directors and the Chief Executive Officer s use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company s and the Group s ability to continue as a going concern. If we conclude that a material uncertainty exists, the latter is required to draw attention in the auditor s 44 BIMOBJECT ANNUAL REPORT 2017

45 AUDITOR S REPORT FINANCIAL STATEMENTS report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify the opinion about the annual accounts and consolidated accounts. Our conclusions are based on the audit evidence obtained up to the date of the auditor s report. However, future events or conditions may cause a company and a group to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated accounts. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our opinions. We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of significant audit findings during our audit, including any significant deficiencies in internal control that we identified. Report on other legal and regulatory requirements Opinions In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Chief Executive Officer of BIMobject AB for 2017 and the proposed appropriations of the Company s profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Chief Executive Officer be discharged from liability for the financial year. Basis for Opinions We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor s Responsibilities section. We are independent of the parent company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Directors and the President and CEO The Board of Directors is responsible for the proposal for appropriations of the company s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company's and the Group s type of operations, size and risks place on the size of the parent company's and the Group s equity, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company s organization and the administration of the company s affairs. This includes, among other things, continuous assessment of the Company s and the Group s financial situation and ensuring that the company's organization is designed so that the accounting, management of assets and the company s financial affairs otherwise are controlled in a reassuring manner. The Chief Executive Officer shall manage the ongoing administration according to the Board of Directors guidelines and instructions and among other matters take measures that are necessary to fulfil the company s accounting in accordance with law and handle the management of assets in a reassuring manner. Auditor's responsibility Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Chief Executive Officer in any material respect: has undertaken any action or been guilty of any omission which can give rise to liability to the company, or in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. Our objective concerning the audit of the proposed appropriations of the company s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company s profit or loss are not in accordance with the Companies Act. As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgment and maintain professional scepticism throughout the audit. The examination of the administration and the proposed appropriations of the company s profit or loss are based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgment with starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company s situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion on the Board of Directors' proposed appropriations of the company's profit or loss, we examined the Board of Directors reasoned statement and a selection of supporting evidence in order to be able to assess whether the proposal is in accordance with the Companies Act. Malmö on 18 May 2018 KPMG AB David Olow Authorized Public Accountant BIMOBJECT ANNUAL REPORT

46 FINANCIAL STATEMENTS BOARD OF DIRECTORS AND MANAGEMENT TEAM Board of Directors and management team Stefan Larsson Board member & CEO At BIMobject since: 2011, founder Nationality/born: Swedish/1966 Other assignments: CEO Procedural Labs AB Previous assignments (selection): Director of International Sales Graphisoft Vice President of European Business Development EON Reality Inc Director of Business Development Europe EON Reality Inc International Sales Manager Graphisoft Global Vice President of Marketing GDL Technology Co-founder and CEO LaserCad AB Holdings, incl. related parties: 5,945,900 Ben O Donnell Board member & CTO At BIMobject since: 2011 Nationality/born: Swedish/1972 Other assignments: - Previous assignments (selection): Architect Mark Zelinski Architects CAD/BIM-expert Lasercad AB Consultant Graphisoft Sweden Holdings, incl. related parties: 125,706 Johannes Reischböck Board member & COO At BIMobject since: 2012 Nationality/born: German/1959 Other assignments: Board member buildingsmart Board member BVBS Previous assignments (selection): Vice President of Worldwide Sales Graphisoft, Budapest General Manager Graphisoft Deutschland GmbH Holdings, incl. related parties: 1,628,500 Sven Holmgren Senior Vice President and General Counsel At BIMobject since: 2013 Nationality/born: Swedish/1961 Other assignments: Board member - Global Warning Systems AB Previous assignments (selection): Attorney Lindahl Senior Vice President Indigo Aviation Senior Vice President Volito Aviation President and CEO Volito AB Holdings, incl. related parties: 1,722, BIMOBJECT ANNUAL REPORT 2017

47 BOARD OF DIRECTORS AND MANAGEMENT TEAM FINANCIAL STATEMENTS Phillippe Butty Board member At BIMobject since: 2011 Nationality/born: Swiss/1959 Other assignments: CEO Abvent Switzerland Board member Abvent France Chairperson of the Board International sales manager Abvent, Paris Previous assignments: - Holdings, incl. related parties: 2,363,000 Michael Thydell Board member and Business Director At BIMobject since: 2014 Nationality/born: Swedish/1964 Other assignments: - Previous assignments: Partner ArcSquare AB Architect and CAD/BIM consultant AEC AB Manager AEC AB BIM strategist Sweco AB Holdings, incl. related parties: Lotta Askerlund Global HR Director At BIMobject since: 2014 Nationality/born: Swedish/1973 Other assignments: - Previous assignments: HR Manager Openlane, USA HR Advisor Kaiser Permanente, USA Senior HR Manager AerCap, USA Holdings, incl. related parties: 21,185 Peter Markenvard CMO At BIMobject since: 2017 Nationality/born: Swedish/1967 Other assignments: - Previous assignments: Board member Markenvard Media Holdings, incl. related parties: 99,772 Anders Wilhjelm Chairman of the Board At BIMobject since: 2017 Nationality/born: Dansk/1966 Other assignments: Chairman of the Board Gram Equipment A/S Board member Tresu A/S Board member Biomar A/S Board member DAT-Schaub A/S Previous assignments: CEO Solar A/S CEO GEA Process Engineering (GEA Group) Executive Vice President Danisco A/S Holdings, incl. related parties: 14,650 Stefan Hansson CFO At BIMobject since: 2015 Nationality/born: Swedish/1971 Other assignments: Previous assignments: CFO Bring Cargo Inrikes AB Head of Accounting Business Partner Regional Units E.ON Sverige AB Head of Business Development E.ON Sverige AB Head of Closing and Reporting E.ON Sverige AB Holdings, incl. related parties: 114,890 BIMOBJECT ANNUAL REPORT

48 FINANCIAL STATEMENTS OTHER INFORMATION Other information This annual report is available in Swedish. The audited annual report for BIMobject AB (publ) consists of the administration report and related financial statements on pages TO ORDER THE ANNUAL REPORT The annual report is published in Swedish and English and can be downloaded at A hard copy of the annual report can be ordered from the contact person below. ANNUAL GENERAL MEETING The Annual General Meeting of shareholders in BIMobject AB (publ) will be held at 10:00 a.m. on Friday 8 June 2018 at Studio, Nordenskiöldsgatan 24, floor 2, in Malmö. The Notice to attend the Annual General Meeting is posted at Shareholders who wish to attend the Annual General Meeting must: Be recorded in the share register kept by Euroclear Sweden AB by Friday, 1 June 2018, and notify the Company no later than Friday 1 June 2018 in writing at BIMobject AB, c/o Studio, Nordenskiöldsgatan 24, Malmö, Sweden. Shareholders can also notify the Company by phone +46 (0) or by bolagsstamma@bimobject.com. The notification must state the full name, personal or corporate identification number, shareholding, address, daytime phone number and, if applicable, information about authorized representative or assistant (maximum 2). Where appropriate, the notification should be accompanied by proxies, company registration certificate and other authorization documents. PRODUCTION BIMobject in collaboration with Oxenstierna & Partners. CONTACT Stefan Hansson CFO Tel: stefan.hansson@bimobject.com 48 BIMOBJECT ANNUAL REPORT 2017

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51 ABOUT THE COMPANY INTRODUCTION BIMOBJECT ANNUAL REPORT