The objectives set for the year for license, and maintenance and support revenue were achieved. Costs continued to be contained and both earnings and cash flow were improved.

(1 February 2007, Linköping)

Fourth quarter 2006

Net revenue reached SKr 616 million (630). Compared with the previous year, it was negatively affected by SKr 31 million in currency effects. License revenue was SKr 140 million (142), whereas maintenance and support revenue amounted to SKr 153 million (140). Consulting revenue reached SKr 313 million (329).

EBIT increased to SKr 63 million (42), with earnings before tax of SKr 49 million (35). Profit for the period totaled SKr 223 million (24), positively affected by activated deferred tax claims of SKr 183 million, with profit per share for the period of SKr 0.96 (0.11).

Cash flow from current operations totaled SKr 134 million (86). Cash flow after investment operations totaled SKr 75 million (49).

Full year 2006

Net revenue reached SKr 2,209 million (2,149). License revenue increased to SKr 433 million (383) whereas maintenance and support revenue amounted to SKr 600 million (528), representing a growth in product revenue of 13%. Consulting revenue reached SKr 1,140 million (1,175).

EBIT increased to SKr 120 million (97). Earnings before tax amounted to SKr 75 million (67). Profit for the year totaled SKr 246 million (50), positively affected by activated deferred tax claims of SKr 184 million, with profit per share of SKr 1.07 (0.23). Adjusted EBITDA reached SKr 184 million, corresponding to a margin of 8%.

Cash flow from current operations improved to SKr 252 million (157). Cash flow after investment operations totaled SKr 86 million (28).

The development of the SOA-based IFSApplications 7 was concluded, and the first customers went live.

Outlook

For 2007 it is the objective of the board to achieve an EBIT that is significantly better than the 2006 EBIT of SKr 120 million and continued improvement in cash flow.

For additional information, contact:

Alastair Sorbie, President and CEO
Phone: +44 (0) 1494 42 89 00

Håkan Gyrulf, Chief Financial Officer
Phone: +46 8 58 78 45 00

Manni Svensson, Investor and Public Relations
Phone: +46 8 5878 45 00

About IFS

IFS (XSSE: IFS), the global enterprise applications company, provides solutions that enable organizations to respond quickly to market changes, allowing resources to be used in a more agile way to achieve better business performance and competitive advantage.

IFS was founded in 1983 and now has 2,600 employees worldwide. IFS pioneered component-based enterprise resources planning (ERP) software with IFS Applications, now in its seventh generation. IFS’ component architecture provides solutions that are easier to implement, run, and upgrade. IFS Applications is available in 54 countries, in 20 languages.

IFS has more than 500,000 users across seven key vertical sectors: aerospace & defense, automotive, high-tech, industrial manufacturing, process industries, construction & facilities management, and utilities & telecom. IFS Applications provides extended ERP functionality, including supply chain management (SCM); enterprise asset management (EAM); maintenance, repair, and overhaul (MRO); product lifecycle management (PLM); customer relationship management (CRM); and corporate performance management (CPM) capabilities.


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