GWS-Q2 Report 2017

support through innovation and will therefore integrate the Safeture portfolio, including Safeture Go, Safeture Pro and Safeture Pro +, in their produ...

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Interim report 2017-01-01 – 2017-06-30



- Keeping you safe.



GWS Production AB (publ) 556776-4674



Contents Summary of interim report Significant events during Q2 Comments by our CEO About GWS Production AB Development in figures during Q2 2017 Other information GROUP Statement of income - summary Statement of financial position - summary Cash-flow - summary Changes in equity - summary MOTHER COMPANY Statement of income - summary Statement of financial position - summary Cash-flow - summary Changes in equity - summary

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GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com



Summary of interim report “Mother company” or “GWS”, comprises of GWS Production AB with company number 556776-4674, without subsidiaries. “The Group” comprises the Mother company, including subsidiaries. At June 30, 2017, the Mother company owned 51% of the shares in Travelogix Ltd, 100% of the shares in GWS Production (Singapore) Pte Ltd, 99,99% of the shares in GWS do Brasil Solucões e Sistemas Tecnológicos em Seguranca Ltda and 35% of the shares in Carefindy AB (minority interest). THE GROUP First six months (2017-01-01 to 2017-06-30) • Net turnover amounted to 6 508 (4 424) TSEK. • Result after financials and minority share amounted to -6 117 (-8 536) TSEK. • Result per share* amounted to -0,43 (-0,59) SEK. Second quarter (2017-04-01 to 2017-06-30) • Net turnover amounted to 3 260 (2 653) TSEK. • Result after financials and minority share amounted to -2 688 (-4 204) TSEK. • Result per share* amounted to -0,19 (-0,29) SEK. • The solidity** amounted to 77,1 (88,4) % at June 30, 2017. THE MOTHER COMPANY First six months (2017-01-01 to 2017-06-30) • Net turnover amounted to 4 069 (3 340) TSEK. • Result after financials amounted to -5 619 (-8 108) TSEK. • Result per share* amounted to -0.39 (-0,57) SEK. Second quarter (2017-04-01 to 2017-06-30) • • • •

Net turnover amounted to 2 044 (1 829) TSEK. Result after financials amounted to -2 461 (-4 014) TSEK. Result per share* amounted to -0.17 (-0,28) SEK. The solidity** amounted to 79,4 (88,2) %.

Amounts within brackets regard corresponding period last year.

*Results per share: results are divided by average number of shares. Average number of shares for the first six months 2017: 14 365 407 (14 349 105) shares. Average number of shares for the second quarter 2017: 14 365 407 (14 365 407) shares. Total number of shares in GWS as at June 30, 2017: 14 365 407 (14 365 407) shares. The Company has issued 650 000 share options (2015/2019), of which, 427 885 have been signed for that can be converted to the same number of shares in the Company during March, 2019. The Company has also issued 40 000 share options (2015/2019), all signed for, which can be th th converted into the same number of shares from July 8 , 2019 to July 24 , 2019. The Company has also issued 670 000 share options (2016/2020), of which 670 000 have been signed for, which can be converted into the same number of shares in the Company during April, 2020.

**Solidity: Equity divided by total assets.

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GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com



Significant events during first quarter, 2017. •

GWS transfers 65% of Carefindy shares to Rethinking Care Sweden AB, for additional information please see press release dated January 19, 2017, on the Company´s web page.



GWS receives government research grant from Vinnova for the project “Artificial intelligence for detecting global security risks. The grant will be around 2 million SEK and will be matched by an equal sum from GWS.



Significant events during second quarter, 2017. •

GWS signs partnership agreement with Lingmerths Resebyrå AB, a major agency located in southern Sweden.



GWS adds insurance technology as focus area, for additional information please see press release dated April 26, 2017, on the Company´s web page. Annual general meeting in GWS 29 May, 2017. Information about resolutions taken are published in a Press Release dated 29 May, 2017. GWS announces that all future regulatory press releases will be in in English. Extra general meeting in GWS 27 June, 2017. Information about resolutions taken are published in a Press Release dated 27 June.





• • .

Significant events after the second quarter, 2017. •

GWS and ERV sign a new agreement and extend their corporation.



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GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com





COMMENTS BY OUR CEO, ANDREAS RODMAN

The second quarter of the year involved as before a lot of work with large customers and businesses. A job that takes time but where we start to see results. Our cash flow has over time improved significantly. From minus 6 343 kSEK in the same period last year to minus 2 147 kSEK during the second quarter this year which gives us a greatly improved perseverance to realize the bigger businesses. During the second quarter, we have also confirmed that the SDK initiative was correct. ERV became the first customer and the SDK solution also gives us a unique advantage to our competitors. Our software developer kit (SDK) means that you can include GWS services as a component of existing or new apps. The solution also provides the opportunity to work with multiple customers in parallel, without GWS having to add large internal development resources to each individual project. None of our competitors are offering a similar solution. The agreement, with ERV, also shows that our customers have a high level of confidence in us and our services and would like to continue the initiated partnerships. The need for safety while traveling, both at work and in private, continues to grow. In case of major events, it is often difficult for the person on the spot to get accurate and relevant information about what has happened and where to turn to for help. This applies to both natural disasters and terrorist acts. Through Safeture and Safeture Pro, GWS has repeatedly shown the importance of quickly analyzing what has happened, making relevant descriptions and communicating information to just the people who need it. We are continually expanding our content analytic capabilities internationally and to administer the growing analytic operations of the South America content team we have now registered a local company in Brazil. During the quarter, GWS signed a partnership agreement with Lingmerth's Travel Agency one of the twenty largest travel agencies in Sweden. Lingmerths has as a corporate philosophy to offer travelers 5

GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com

support through innovation and will therefore integrate the Safeture portfolio, including Safeture Go, Safeture Pro and Safeture Pro +, in their product range. The agreement means that GWS has succeeded in establishing new contracts within outsourced business segments and consolidating its position as a leading provider of modern and personal travel safety. GWS's board is important for our work. It is therefore very pleasing that we managed to recruit two new members in the second quarter to help the company grow. Deep Parekh has worked in major companies such as Unilever and EY in the United States for the past 25 years. Parekh combines broad IT background with a strong market drive and solid international experience and, with his experience, can contribute to GWS's continued work towards InsurTech. Charlotta Tönsgård has spent 8 years working for different companies in the mobile industry. Four of these she were stationed in South Korea responsible for sales APAC, she also worked at Blackberry doing mergers and acquisitions. Most recently she worked as CEO of Swedish company Min Doktor. Lund, 2017-08-25

Andreas Rodman CEO, GWS Production AB





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GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com



About GWS Production AB Global Warning System (GWS) offers mobile-based personal security services to companies and consumers to protect employees, family members and individuals when they travel abroad. The Company was founded in 2009, triggered by the experience of the global SARS epidemic, the Indian Ocean tsunami and the Mumbai terror attacks, where people could have been warned earlier, and received more information. GWS vision is to prevent damages by providing correct information in real-time. Strategy • • • •

To grow responsibly by establishing a leading position globally. To establish our products, Safeture PRO – Business Solution, as the first choice for all corporate customers. To establish GWS as a key player within insurance technology. To create long-term value for the shareholders of GWS through generating profit to pay dividends, and to secure the development and growth of the company.

Vision & Mission Our mission is to save lives and to prevent harm by making security information available to people no matter where they are. We achieve this by being the best to distribute reliable and fast security related information to individuals and organisations. Research and development Research and development are prioritized areas within GWS. The company invests continuously in research and development to maintain its technological lead. Thanks to a close cooperation with our customers we develop and adapt our products continuously. The knowledge bank that we create is used in our technical development in order to benefit our customers and keep our advantage in relation to our competitors. Risks and uncertainties A number of risk may have an influence on the company´s business. No major changes in risk can be seen during 2017. A more detailed review of these can be found in the Financial Statements for 2016, available on the Company´s web page. Organisation/personal The average number of employees in the Mother company for the first six months 2017 amounted to 16 (18). The corresponding figure for the Group amounted to 23 (21). The increase for the Group refers mainly to that we have increased marketing and sales, development and intelligence analysis.

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GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com



Development in figures during second quarter, 2017. Amount within brackets corresponds to the same period last year.

Turnover Net turnover for the Group during Q2, 2017 amounted to 3 260 (2 653) TSEK, while the net turnover for the Mother company amounted to 2 044 (1 829) TSEK. Result The result for Q2, 2017 for the Group amounted to -2 688 (-4 204) TSEK after minority share of the result. The result for the Mother company amounted to -2 461 (-4 014) TSEK.

Liquidity Cash in bank for the Group, as at June 30, 2017 amounted to 12 493 (27 514) TSEK, while cash in bank for the Mother company as at June 30, 2017 amounted to 11 893 (27 061) TSEK. Q2 cash-flow for the Group and the Mother company amounted to -2 147 (-6 343) TSEK respective -1 737 (-6 292) TSEK. Investments Q2 investments in intangible and tangible assets amounted to 1 466 (2 690) TSEK for the Group, and were mainly activated development costs. Corresponding investments in the Mother company amounted to 1 523 (2 564) TSEK, and were also mainly activated development costs. Solidity The solidity of the Group as at June 30, 2017 amounted to 77,1 (88,4) %, while the solidity for the Mother company amounted to 79,4 (88,2) %. Solidity is calculated as total equity to total assets. The share There is only one class of shares in GWS Production AB. The shares of the Company are listed on Nasdaq OMX First North in Stockholm under the abbreviation, “GWS”. As at June 30, 2017 the Company had issued 14 365 407 (14 365 407) shares. The average number of shares during the second quarter of 2017 amounted to 14 365 407 (14 365 407) shares.

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GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com

Share options th

On April 9 , 2015, an extra general meeting decided for a directed issue of share options to employees and key personnel. The share options are issued at a price of 0,13 SEK per option. The subscription price for exercising th the share options amounted to 16.56 SEK per share. 427 885 share options were subscribed until April 17 , 2015, which was the last date for subscription. The share options may be exercised during the period March th th 15 , 2019 – March 29 , 2019, to subscribe for new shares in the company. One (1) share option gives the right to subscribe for one (1) new share. th On June 17 , 2015, a general meeting decided for a direct issue of 40 000 share options of series 2015/2019 directed to Sven Holmgren, Hans Skalin, Paul Degerlund, and Wolter Mannerfelt. The share options are issued at the price of 0.31 SEK per option. The share options give the holder a right to subscribe for 40 000 new shares th th in the company. The options may be exercised during the period July 8 , 2019 – July 24 , 2019. The subscription price for exercising the options amounts to 31.11 SEK per share. th On May 25 , 2016, a general meeting decided for a direct issue of 670 000 share options of series 2016/2020 to employees and key personnel, as well as to employees of Travelogix Ltd. The share options are issued at a price of 0.09 SEK per option. The subscription price for exercising the share options amount to 37.05 SEK per option. th th The share options may be exercised during the period April 15 , 2020 – April 29 , 2020. One (1) share option gives the right to subscribe for one (1) new share. Biggest shareholders The schedule below shows the five biggest shareholders, and the number of shares they own in GWS Production AB, as at June 30, 2017.

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Algora AB Emirates Advanced Investment Trading LLC 2 3 Academic Medical Group AB Lundaklostret AB Andreas Rodman Others (about 1 155 shareholders) Totalt

3 488 174 960 374 692 340 678 119 577 500 7 968 900 14 365 407 pcs

24,28 % 6,69 % 4,82 % 4,72 % 4,02 % 55,47 % 100,0 %



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Algora AB is owned to 100 % by the chairman of the board, Lars Lidgren, (private, related party and family).

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Academic Medical Group AB is owned by the chairman of the board Lars Lidgren, 55,7 % through Algora AB, 2,8 % is owned through Seagles

Aktiebolag. Board member Sven Holmgren owns 1,97 % (through related party), board member Hans Skalin 2,6 % (through related party) and Andreas Rodman 9,45 % (private) in Academic Medical Group AB. 3

Academic Medical Group AB purchased in June 2015 the shares from its subsidiary AM e-Consulting AB.

Related party transactions The chairman of the board, Lars Lidgren, has through his company Seagles AB invoiced the Company 120 TSEK for management services during the first six months 2017. Mathia Nalappan, board member of GWS Production AB, has received 100 TSEK as remuneration for management services during the first six months 2017.





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GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com



Other information General accounting principles

The Interim Report has been established in accordance with Årsredovisningslagen (1995:1554) and BFNAR 2012:1, Årsredovisning och koncernredovisning (K3). General accounting principles applied is coherent with the accounting principles used when establishing the financial statements 2016. Going concern GWS is for the time being operating at a loss and, hence, has a negative cash-flow. The negative cash flow is paid from equity. The board estimates that GWS will need additional financing during 2018 for continued operations and further growth. The management of the company and the board are working to secure additional funding for GWS. Audit The Interim Report has not been audited by the Company´s auditors. Report dates The company establish and publish a financial report every quarter. Upcoming reports are planned as per below: • • • •

Q3 report 2017 Year-end report for 2017 Publishing of Financial Statements 2017 Annual general meeting for 2017

2017-11-24 2018-02-27 2018-04-20 2018-05-29

Certified Adviser Sedermera Fondkommission is the Certified Adviser of GWS.

Submission of Interim Report Lund August 25, 2017 GWS Production AB (publ) The board Lars Lidgren – chairman of the board Sven Holmgren – board member Mathia Nalappan – board member Deep Parekh – board member Hans Skalin – board member Charlotta Tönsgård – board member Andreas Rodman – managing director For further information please contact MD Andreas Rodman, +46 (0) 708 – 10 13 16, [email protected]





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GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com



THE GROUP (The Group comprises the Mother company, including subsidiaries. At June 30, 2017, the Mother company owned 51% of the shares in Travelogix Ltd, 100% of the shares in GWS Production (Singapore) Pte Ltd, 99,99% of the shares in GWS do Brasil Solucões e Sistemas Tecnológicos em Seguranca Ltda and 35% of the shares in Carefindy AB (minority interest)).

Statement of income - summary (TSEK) Revenue Net turnover Own work activated Other income Total revenue Operating costs Depreciation Operative result Financials Finance net Result after financials Minority share of the result Loss for the period Result per share (SEK)

Q2 2017

Q2 2016

3 260 1 355 47 4 662 -6 578 -929 -2 845 4 -2 841 153 -2 688 -0,19

2 653 1 562 5 4 220 -7 868 -644 -4 292 -4 -4 296 92 -4 204 -0,29

6 months 2017 6 508 2 175 67 8 750 -13 252 -1 822 -6 324 4 -6 320 203 -6 117 -0,43

6 months 2016

2017-06-30 13 628 309 1 069 15 006 4 500 12 493 16 993 31 999 1 149 5 262 81 656 -59 498 -6 117 2 230 24 682 7 317 31 999

2016-12-31 13 257 344 950 14 551 2 669 18 534 21 203 35 754 1 149 3 280 81 725 -40 175 -17 592 2176 30 563 5 191 35 754

4 424 3 073 150 7 647 -15 193 -1 200 -8 746 -52 -8 798 262 -8 536 -0,59



Statement of financial position - summary



(TSEK) Assets Fixed assets Intangible assets Tangible assets Financial assets Total fixed assets Current assets Short term receivables Cash and bank Total current assets Total assets Equity and liabilities Restricted equity Share capital Fund for development costs Non restricted equity Share premium Retained earnings Result for the period Minority interest Total equity Total short term liabilities Total equity and liabilities

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GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com



Statement of cash flow - summary (TSEK)



Operating activities Operative result Adjustment for depreciation Interest received /paid Cash flow from changes in working capital Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow of the period Cash at the beginning of the period Cash at the end of the period

Q2 2017

Q2 2016

-2 845 929 4 1 231 -681 -1 466 0 -2 147 14 640 12 493

-4 292 644 6 -1 028 -4 670 -1 720 47 -6 343 33 857 27 514



2017-01-01 2017-06-30 -6 324 1 822 4 743 -3 755 -2 286 0 -6 041 18 534 12 493

2016-01-01 2016-06-30 -8 746 1 200 18 -697 -8 225 -6 509 2 218 -12 516 40 030 27 514

Changes in equity - summary First 6 months 2017

(TSEK)

Share capital

Share premium

1 149 - -

Fund for development costs 3 280 1 982

1 149

Share capital

2017-01-01 Reallocation Loss for the period 2017-06-30

Minority interest

Total equity

81 725 -69 -

Ret. earnings incl. Loss of the period -57 767 -1 731 -6 117

2 176 257 -203

30 563 439 -6 320

5 262

81 656

-65 615

2 230

24 682

Fund for development costs - - - 3 280 3 280

Share premium

Ret. earnings incl. Loss of the period -36 931 36 - - -3 280 -17 592 -57 767

Minority interest

Total equity

2 176 - -

43 800 2 212 2 083 60 0 -17 952 30 563

Twelve months 2016

(TSEK)

2016-01-01 1 140 79 591 Travelogix - Issue of new shares 9 *2 074 Share options 60 Reposting Loss for the period - - 2016-12-31 1 149 81 725 *Cost for issuing new shares amounting to 181 TSEK has reduced Share premium.



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GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com

- 2 176



THE MOTHER COMPANY Statement of income - summary (TSEK) Revenue Net turnover Own work activated Other income Total revenue Operating costs Depreciation Operative result Financials Finance net Result after financials Result before tax Loss for the period Result per share (SEK)

Q2 2017

Q2 2016

2017-01-01 2016-01-01 2017-06-30 2016-06-30 2 044 1 829 4 069 3 340 1 355 1 563 2 175 3 009 47 6 68 103 3 446 3 398 6 312 6 452 -5 149 -6 898 -10 457 -13 610 -762 -521 -1 478 -969 -2 465 -4 021 -5 623 -8 127 4 7 4 19 -2 461 -4 014 -5 619 -8 108 -2 461 -4 014 -5 619 -8 108 -2 461 -4 014 -5 619 -8 108 -0,17 -0,28 -0,39 -0,57



Statement of financial position - summary



(TSEK) Assets Fixed assets Intangible assets Tangible assets Financial assets Total fixed assets Current assets Short term receivables Cash and bank Total current assets Total assets Equity and liabilities Restricted equity Share capital Fund for development costs Non restricted capital Share premium Retained earnings Loss for the period Total equity Total short term liabilities Total equity and liabilities

2017-06-30 8 495 95 5 834 14 424 3 661 11 893 15 554 29 978 1 149 5 262 81 725 -58 704 -5 619 23 813 6 165 29 978

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GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com

2016-12-31 7 671 117 5 747 13 535 2 008 17 826 19 834 33 369 1 149 3 210 81 725 -40 141 -16 511 29 432 3 937 33 369



Statement of cash flow - summary (TSEK)



Operating activities Operative result Adjustment for depreciation Interest received /paid Cash flow from changes in working capital Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow of the period Cash at the beginning of the period Cash at the end of the period

Q2 2017

Q2 2016

2017-01-01 2017-06-30 -5 623 1 478 4 551 -3 590 -2 343 0 -5 933 17 826 11 893

2016-01-01 2016-06-30 -8 127 969 19 -829 -7 968 -6 853 2 218 -12 603 39 664 27 061

-2 465 762 4 1 485 -214 -1 523 0 -1 737 13 630 11 893

-4 021 521 7 -1 282 -4 775 -1 564 47 -6 292 33 353 27 061

Share premium

Ret. earnings incl. Loss for the period

Total equity

81 725 - - 81 725

-56 652 -2052 -5 619 -64 323

29 432 - -5 619 23 813

Share premium

Ret. earnings incl. Loss for the period

Total equity

79 591 *2 074 60 - - 81 725

-36 931 - - -3 210 -16 511 -56 652

43 800 2 180 56 0 -16 511 29 432



Changes in equity - summary First 6 months 2017

(TSEK) 2017-01-01 Reallocation Loss for the period 2017-06-30 Financial year 2016 (TSEK) 2016-01-01 Issue of new shares Share options Reallocation Loss for the period 2016-12-31

Share capital 1 149 - - 1 149

Share capital 1 140 9 - - - 1 149

Fund for development costs 3 210 2 052 5 262

Fund for development costs - - - 3 210 - 3 210

*Cost for issuing new shares amounting to 181 TSEK has reduced Share premium.

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GWS Production AB | Ideon Gateway | Scheelevägen 27 | 223 63 Lund | Sweden www.globalwarningsystem.com



GWS Production AB (publ.) Ideon Gateway Scheelevägen 27 223 63 Lund 046 – 38 67 50 www.globalwarningsystem.com

- Keeping you safe.